Russell Investments launches new fund for investors seeking yield-oriented investment strategies
Russell Multi-Strategy Income Fund uses multi-asset approach to balance yield and total return objectives to help meet investors’ current and future income needs
SEATTLE, May 4, 2015
To help investors balance the need for generating income today, while also aiming to drive portfolio growth to generate sustainable future income, global asset manager Russell Investments has launched the Russell Multi-Strategy Income Fund. The new fund, available via financial professionals, invests across a set of asset classes with both income and growth potential using a team of specialist money managers and strategies. Moreover, recognizing that market opportunities will likely change over the course of an investor’s time horizon, the fund has built-in flexibility to seek to adapt to risk and opportunities using dynamic portfolio management.
“The demand for income solutions is as great as it has ever been, so this is driving many investors to prioritize short-term income over long-term growth by ‘reaching for yield.’ In this pursuit they are potentially jeopardizing their future income needs,” said Phill Rogerson, managing director, consulting and product, for Russell Investments’ U.S. advisor-sold business. “The Russell Multi-Strategy Income Fund is designed to help investors reach for yield responsibly through a diversified approach that balances the need for current income with the potential portfolio growth necessary to sustain future income.”
To accomplish this objective, the fund invests in a broad range of globally diversified income-producing equity, real assets and fixed income securities. A team of specialist third-party managers has been assembled based on their specific expertise in income-producing investments, such as listed infrastructure, REITs, global equity, emerging market debt and global credit. Russell Investments also directly manages a portion of the fund’s assets.
“In the current low interest rate environment, we are seeing investors emphasize income as an investment objective. But if and when interest rates rise, we think that many investors may be subjecting their portfolios to increased risk. Unfortunately, many investors don’t fully appreciate this threat and are not prepared to withstand the risks built into many higher-yielding portfolios,” said Rod Greenshields, consulting director for Russell Investments’ U.S. advisor-sold business. “Our goal with the Russell Multi-Strategy Income Fund is to address the preference that some clients have for yield-oriented investment strategies with an approach that seeks to balance yield and total return objectives.”
Brian Meath, senior portfolio manager, and Rob Balkema, portfolio manager, have primary responsibility for the management of the fund.
“We are looking beyond bonds and borders to deliver a truly global, multi-asset, income-oriented fund,” said Meath. “Taking a multi-asset approach and employing multiple specialist managers requires managing the portfolio as a whole, so that we oversee the total portfolio allocations, manager weights and exposures to proactively and flexibly adapt to risks, as well as income and return opportunities.”
The Russell Multi-Strategy Income Fund can be used as an investment on its own, typically for an investor who is solely seeking yield. Or, for those investors seeking a total return portfolio with a preference for yield, the fund can be incorporated into a well-diversified portfolio such as Russell Investments’ Conservative Model Strategy.
About Russell Investments
Russell Investments is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Russell Investments stands with institutional investors, financial advisors and individuals working with their advisors—using the firm's core capabilities that extend across capital market insights, manager research, asset allocation, portfolio implementation and factor exposures to help each achieve their desired investment outcomes.
Russell Investments has more than $272 billion in assets under management (as of 12/31/2014) and works with over 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell Investments has $2.4 trillion in assets under advisement (as of 12/31/2014). It has four decades of experience researching and selecting investment managers and meets annually with more than 2,200 managers around the world. Russell Investments traded more than $1.7 trillion in 2014 through its implementation services business. Russell Investments also calculates approximately 700,000 benchmarks daily covering 98% of the investable market globally, including more than 80 countries and more than 10,000 securities.
Headquartered in Seattle, Washington, Russell Investments operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Milan, Dubai, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Beijing, Toronto, Chicago, Milwaukee and Edinburgh. For more information about how Russell Investments helps to improve financial security for people, visit russellinvestments.com or follow @Russell_Invest.