Toronto-based Russell Investments Canada Ltd. (Russell Canada) Tuesday announced the launch of the retooled Russell Global Unconstrained Bond Pool.
The fund builds on Russell’s current fixed income offering to help clients pursue desired investment outcomes by building a more diversified fixed income approach.
This enhanced fund (formerly the Russell Core Plus Fixed Income Pool) includes a new sub-advisor, an expanded investment mandate and a new set of Russell positioning strategies. This is the first in a planned multi-phase enhancement by Russell Canada.
Russell Canada believes an “unconstrained” approach can benefit Canadian investors and financial advisors looking to diversify their fixed income portfolios. The Russell Global Unconstrained Bond Pool is an absolute return strategy managed without traditional fixed income benchmark constraints, seeking to capitalize on a wider range of global opportunities compared to traditional fixed income products.
The firm’s chief investment officer Greg Nott will oversee the fund as portfolio manager, supported by portfolio analyst Peter Dohnal and Russell’s global fixed income investment team.
According to Nott, “Many traditional fixed income funds tend to closely mirror fixed income indices, which can both limit opportunity and increase risk. To address this challenge, Russell has created an unconstrained fixed-income investment solution that that provides a more global and flexible approach. We will manage the new fund in a highly flexible and opportunistic manner, bringing all the resources of Russell to bear for our clients.”
Toronto-based East Coast Funds Management Ltd has been added as a sub-advisor, with the mandate to manage an absolute return credit portfolio. In addition, the fund’s overarching mandate has been broadened, allowing Nott and his team to diversify among a wider range of fixed income sectors, durations and markets beyond Canada.
As an additional enhancement, the fund’s portfolio managers will now be able to use Russell positioning strategies strategically and tactically in conjunction with the fund’s sub-adviser strategies to seek total return and manage portfolio risk. These include using Russell Conscious Currency positioning strategies to take currency views. Other positioning strategies may include direct investment capabilities such as overlays, smart beta strategies and custom quantitative strategies.
Russell Unconstrained Bond Pool is available for purchase in Series A, Series B, Series E, and Series F (fee-based).