Russell Investments Canada Ltd. is launching the Russell Canadian Dividend Pool, which features fully independent, third-party investment managers.

The Dividend Pool offers broad diversification across two distinct investment management styles, 10 Canadian industry sectors, and dozens of individual holdings — all are designed to provide investors with portfolio stability and further risk reduction.

The Dividend Pool can help Canadians address the growing need to combine consistent income with longer-term capital growth, particularly during their retirement years, suggests Irshaad Ahmad, president and managing director of Russell Canada: “As we emerge from one of the most challenging investment and economic environments in decades, Canadians, particularly retirees and those approaching retirement, will be looking for investments that can provide income and growth opportunities.”

Ahmad adds: ”The Russell Canadian Dividend Pool employs managers who work to buy stable companies that provide consistent dividend returns to investors, which will in turn support longer-term capital appreciation. Russell’s research, such as the 10-30-60 Retirement Rule, serves as a reminder that post-retirement wealth creation is necessary in the provision of sustainable lifetime income, making it very important to have a level of equity exposure that allows for continued growth. And this is where a more conservative equity product with a dividend focus provides a better alternative vs a traditional growth oriented equity fund.”

Foyston, Gordon & Payne and Goodman & Co. Investment Counsel Ltd. are the subadvisors in the Dividend Pool.

FGP was founded in 1980 to provide value-style portfolio management to pension plans, foundations, endowments and high net-worth individuals. FGP worked with Russell Canada to develop a dividend mandate specifically for the Dividend Pool.

Goodman is an investment-management firm that has won numerous Canadian Lipper Awards and Canadian Investment Awards over the past few years.

Russell will continually monitor its subadvisors to determine whether they are consistently generating income and managing risk.

“Given the stock market’s extreme volatility, finding solid dividend-paying stocks that will reward you through good times and bad is more important than ever,” says Sadiq S. Adatia, Russell Canada’s chief investment officer and portfolio manager of the Dividend Pool. “The Russell Canadian Dividend Pool should provide an enhancement to the overall risk/return profile of an investor’s asset allocation. We feel that the top tier investment managers within our signature multi-manager framework offer a unique dividend fund that should serve investors well over time.”