Toronto-based Russell Investments Canada Ltd. Thursday announced the launch of the Russell Focused Canadian Equity Pool and Class for Canadian investors who want to hold a core equity fund with a defensive and value tilt.
“Ongoing market turmoil has many investors searching for more stability,” says David Feather, president and CEO, Russell Investments Canada.
“We believe this new pool will be attractive to conservative investors who want a defensively oriented equity fund that is expected to be less volatile than the market as a whole,” says David Feather, president and CEO, Russell Investments Canada.
“The new Russell Focused Canadian Equity Pool also gives investors the ability to strategically diversify their portfolios by investing in companies that offer different risk-reward characteristics than traditional Canadian equity funds,” he says.
The new pool will invest in a concentrated selection of between 50-70 high-quality Canadian companies.
“The companies chosen for the Pool should have strong balance sheets, solid management and consistent earnings, and they should trade at reasonable valuations,” explains Greg Nott, chief investment officer for Russell Investments Canada. “We believe their defensive profile and robust free cash flows should stand them in good stead during difficult economic conditions.”
The Russell Focused Canadian Equity Class offers investors tax efficiency in their non-registered investments.
The Pool will be sub-advised by three Canadian equity managers, each bringing complementary investment strategies.
Based in Calgary, QV Investors Inc. is a fundamental value-oriented manager that invests in companies with defensive qualities such as enduring business models and sensible capital allocation.
Toronto-based Rondeau Capital Inc. emphasizes the preservation of capital with the potential for solid, steady growth of capital over time. Its portfolio is kept to between 20 and 40 names to help ensure each is of high quality and is expected to have a meaningful impact on the portfolio. At least 55% of the portfolio is in Canadian names at all times.
Toronto-based CGOV Asset Management Ltd. is a small, boutique firm that builds concentrated portfolios with a maximum of 25 names in which it has strong conviction.
Investors can invest in the individual Pool or Class, or access them through a Russell multi-asset portfolio solution, in either the LifePoints or Sovereign Investment Programs.