Helping clients achieve their income goals

Fixed income explained

When you buy a bond, you make a loan to a corporation, municipality or government agency. The borrower gets the cash it needs to fund its activities. And in exchange for using your money, the borrower promises to regularly pay you a specific interest rate for a set time – so you get fixed income.

Bonds and other fixed-income instruments provide a counterbalance when combined with stocks. That's because they typically fluctuate less than, and at different times, than stocks.

Our approach to fixed-income investing

We build fixed-income solutions that are more robust than you can access from a single provider. We use our best-in-class manager research to select managers with the strongest investment processes, no matter where they are or who they work for.

We combine these managers, actively managing them to create dynamic fixed-income portfolios that are diversified by strategy and security type. We manage investment risk carefully, using bespoke guidelines, quantitative risk analytics, and in-house and third-party limit monitoring.

Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice.

The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

Some investments/bonds may not be liquid and therefore may not be sold instantly. If these investments must be sold on short notice, you might suffer a loss.