Russell Investments Canada Ltd. Tuesday announced the launch of the Russell Global High Income Bond Pool, designed for investors looking for global fixed-income diversification.
The new fund is a global fixed-income pool that currently targets 60% high-yield bonds and 40% emerging markets debt.
said David Feather, president and CEO, Russell Canada.
With government securities at historically low interest rates, Russell Canada suggests adding an exposure to high-yield bonds and emerging markets debt may offer investors the potential for higher returns without significantly increasing the risk of their overall portfolio.
“Many companies have emerged from the turbulent market conditions of recent years with solid corporate balance sheets and strong cash flow. Default rates have fallen and are expected to remain low. Additionally, emerging markets on average have lower debt-to-Gross Domestic Product levels than developed countries, giving them the flexibility to provide stimulus if global events warrant,” says Greg Nott, chief investment officer, Russell Canada. “Our new Russell Global High Income Pool provides investors with access to sub-advisers skilled at identifying these new sources of return potential.”
With more than 40 years of experience researching investment managers across the globe, Russell Investments has combined a comprehensive group of specialist sub-advisers to manage the pool:
> DDJ Capital Management, LLC specializes in identifying investment opportunities in high-yield bonds and in the debt of companies that are experiencing financial duress, but with what DDJ believes are competent management teams, sustainable market positions and/or adequate asset values.
> Logan Circle Partners, LLC is a global high-yield specialist that focuses on issue selection to potentially add value. Logan Circle has a strong focus on risk control management and monitors deviations from benchmark weights.
> Stone Harbor Investment Partners LP focuses on emerging markets. The firm is well placed to add value in all areas of emerging markets debt, including local currency and corporates. Stone Harbor specializes in combining fundamental credit skills with modern quantitative allocation techniques.
Investors can invest in the individual pool or access it as part of the Russell Income Essentials Portfolio, Russell Diversified Monthly Income Portfolio, most of the Russell model portfolios and Russell LifePoints Portfolios. It could also be included in the Russell Enhanced Canadian Growth & Income Portfolio on a tactical basis.