Russell launches Global Infrastructure and Global Credit Strategies funds
New funds offer advisors opportunity to increase global allocations to client portfolios
Tacoma, WA Ocober 6, 2010 Aiming to capture opportunities created by the global shift in financial markets, Russell Investments has launched the Russell Global Infrastructure Fund and the Russell Global Credit Strategies Fund, enabling advisors to expand their clients' access to global investments. The two funds also have been added to the Russell LifePoints® Funds Target Portfolio Series and Russell Core Model Strategies.
The Russell Global Infrastructure Fund is designed to offer investors access to "real assets," a category often used by investors looking for enhanced diversification and broader opportunities beyond traditional markets, as well as a potential hedge against inflation. Alternatively, the Russell Global Credit Strategies Fund will offer tactical global bond opportunities, focusing on high yield bonds and emerging market debt and will enable advisors to diversify a client's fixed income lineup.
"Russell endeavors to consistently provide advisors and their clients with thoughtful innovation in regards to building multi-strategy portfolios, which means offering new investing alternatives that are responsive to evolution and globalization in capital markets," said Phill Rogerson, managing director, consulting services for Russell's Private Client Services business. "These two new funds join recently unveiled offerings, particularly our Russell Commodity Strategies Fund, which provide investors with access to new sources of return, skilled managers as well as broader diversification."
Russell Global Infrastructure Fund Overview
The Russell Global Infrastructure Fund will provide access to listed infrastructure investments not widely available in a U.S. mutual fund. With a historically low correlation to equities and fixed income markets, the addition of infrastructure to a portfolio can increase diversification and can be a potential hedge against inflation, as well as an investment opportunity in both developed countries and emerging markets. The Fund will concentrate its investments in equity securities, including common stocks and preferred stocks of listed infrastructure companies located in all major global regions (including the U.S. market). The concentration of the Global Infrastructure Fund will be in developed markets with a marginal allocation to emerging markets.
Akin to other Russell funds in the "real asset" space, such as the Russell Global Real Estate Securities Fund and the Russell Commodity Strategies Fund, the Global Infrastructure Fund will utilize three managers with a depth of understanding in the respective asset category (in this instance, infrastructure investment). The fund launches with three managers: Cohen & Steers Capital Management, Inc., FAF Advisors, Inc., and Macquarie Capital Investment Management LLC.
Russell Global Credit Strategies Fund Overview
Through the Russell Global Credit Strategies Fund investors will gain access to various global credit strategies. As a comparatively more aggressive fixed income product, the fund enhances Russell's fixed income line up and provides advisors and their clients with access to global fixed income and currency.
The fund's investments will primarily be in high yield bonds and emerging market debt, but it also will consist of investment grade securities. Underlying managers include Stone Harbor Investment Partners LP and Oaktree Capital Management, LP.
Additional information about the Russell Global Credit Strategies Fund and Russell Global Infrastructure Fund is available at: www.russell.com/us/Investment_Products/Russell_Funds/global_credit_strategies_overview.asp and www.russell.com/us/Investment_Products/Russell_Funds/global_infrastructure_overview.asp.
About Russell Investments
Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisors and individuals in more than 40 countries. Over the course of its history, Russell's innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership. The firm has $140 billion in assets under management (as of 6/30/10).
For more information about how Russell helps to improve financial security for people, visit us at www.russell.com.
Steve Claiborne, 206-505-1858
Kerstin �sterberg, 718-875-2121
Fund objectives, risks, charges and expenses should be carefully considered before investing. A prospectus containing this and other important information can be obtained by calling (800) 787-7354 or visiting www.russell.com. Please read the prospectus carefully before investing.
Diversification does not assure a profit and does not protect against loss in declining markets.
Commodity futures and forward contract prices are highly volatile. Trading is conducted with low margin deposits which creates the potential for high leverage. Commodity strategies contain certain risks that prospective investors should evaluate and understand prior to making a decision to invest. Investments in commodities may be affected by overall market movements, and other factors such as weather, exchange rates, and international economic and political developments. Other risks may include, but are not limited to; interest rate risk, counter party risk, liquidity risk and leverage risk. Potential investors should have a thorough understanding of these risks prior to making a decision to invest in these strategies.
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Investments in infrastructure-related companies have greater exposure to the potential adverse economic, regulatory, political and other changes affecting such entities. Investment in infrastructure-related companies are subject to various risks including governmental regulations, high interest costs associated with capital construction programs, costs associated with compliance and changes in environmental regulation, economic slowdown and surplus capacity, competition from other providers of services and other factors. Investment in non-U.S. and emerging market securities is subject to the risk of currency fluctuations and to economic and political risks associated with such foreign countries.
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On October 1, 2010, the Russell Real Estate Securities Fund was renamed the Russell Global Real Estate Securities Fund.
First Used: October 2010