Russell creates new pooled investment

Toronto-based Russell Investments Canada Ltd. has launched a new investment pool designed for Canadian investors who want to hold short-term, fixed-income securities that offer the potential for lower volatility and less interest rate risk than longer-duration fixed-income funds. Russell Short Term Income Pool and Class invests in domestic short-term corporate bonds, floating-rate notes, asset-backed securities, mortgage-backed securities and other investment-grade debt products, all with maturities of up to five years. The new pool also may invest in foreign fixed-income securities on a currency-hedged basis. These securities offer the potential for capital appreciation, as well as interest income. The pool offers investors tax efficiency in its non-registered investments. The pool will be subadvised by three fixed-income managers: Vancouver-based RBC Phillips Hager & North Investment Counsel Inc., Toronto-based AEGON Capital Management Inc. and Richmond Hill, Ont.-based Canso Investment Counsel Ltd. Investors can invest in the individual pool or class, or access both through a Russell multiasset portfolio solution in either the LifePoints or Sovereign Investment programs. Russell Short Term Income Pool will be included in the Russell LifePoints Fixed Income Portfolio and Class with a 20% allocation; in the Russell LifePoints Conservative Income Portfolio and Class, with a 15% allocation; and in the Russell LifePoints Balanced Income Portfolio and Class, with a 10% allocation. Within the Sovereign Investment Program, the new pool will be included in the Russell Income Essentials Portfolio and Class, with a 10% allocation.

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