Russell Investments Canada Limited has launched Russell Enhanced Canadian Growth and Income Portfolio, a new breed of balanced portfolio.

The portfolio starts with an asset allocation of 60% Canadian equities and 40% fixed income, but can dynamically adapt to changing market conditions using Russell’s Enhanced Asset Allocation (EAA) model. EAA allows the portfolio’s weightings to be adjusted and outline a path to potentially higher returns, based on the market insight of Russell’s investment experts.

Although EAA is a new investment model in Canada, it is an asset allocation innovation that has been researched and developed at Russell for over 15 years.

“EAA has already been well-received by institutional clients globally and we are very excited to now deliver this unique offering to our retail clients in the Russell Enhanced Canadian Growth and Income Portfolio,” says Russell Canada portfolio manager Greg Nott.

“The EAA model is not there to dominate the overall Portfolio. Rather, it is designed to seek improved returns for clients by purposely tilting the Portfolio to take advantage of Russell’s insights into the current relative valuation of asset classes, while still managing risk and liquidity,” Nott explains.

“For instance, the portfolio could tilt the equity/ bond balance or the Canadian equity/ non-Canadian equity balance if a significant opportunity to add value is identified.”


Investors can choose a non-distribution option or select a 5%, 6%, or 7% monthly distribution.

The portfolio features allocations to the Russell Fixed Income Pool, the Russell Core Plus Fixed Income Pool, the Russell Canadian Dividend Pool and the Russell Canadian Equity Pool (with potential foreign equity exposure up to a maximum of 30%). It is also available in a Corporate Class series.

Similar to all Russell products, the portfolio features best-of-breed sub-advisors. Russell selects and continually monitors leading global money managers to sub-advise the underlying assets within the portfolio.

Russell Investments Canada Limited is a wholly owned subsidiary of Tacoma, Wash.-based Frank Russell Company.

IE