Russell Fixed Income Pool - US Dollar Hedged Series
The Russell Fixed Income US Dollar Hedged Series is ideal for investors who want U.S. dollar denominated exposure while maintaining key Canadian and international asset classes. The US Dollar Hedged Series offers protection from movements in the US/CAD dollar exchange rate.
A fixed-income solution with built-in currency hedging.
This innovation from Russell Investments allows you to invest U.S. dollars in a portfolio of high-quality Canadian assets while shielding yourself from the impact of USD/CAD¹ exchange rate movements. Your initial investment is made in U.S. dollars, which Russell converts into Canadian dollars to purchase the underlying securities held by the fund. Russell then uses a currency hedging strategy to protect your investment from future USD/CAD currency fluctuations.
Portfolio composition of the Russell Canadian Fixed Income Fund
The Russell Fixed Income Class enters into forward contracts under which it will swap an equity return for the Russell Canadian Fixed Income Fund return.
*Inception Date: July 9, 2013
¹ The series will minimize, not eliminate currency fluctuations. For more information see the Simplified Prospectus of Russell Fixed Income Class. Using OTC currency forwards for Russell Fixed Income Class - US Dollar Series adds another step in the settlement process versus other series of Russell Fixed Income Class which do not use these instruments. Thus, there may be some market movement which would cause performance differences between the US Dollar Series and other series. The cost for the currency hedging will be estimated to be 4 to 5 bps. This chart is for descriptive purposes only. The chart shows hypothetical assumptions only and are not representations or predictions with respect to actual or expected future performance or returns of Russell Fixed Income Class or Russell Fixed Income Class US Dollar Series.