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Multi Style
The Second Dimension in Russell's Investment Approach
When you invest in one Russell fund, you are usually investing in a single asset class that is diversified into several complementary styles. This blending of styles can help reduce risk and work toward more consistent returns. This way, your investment is always working for you, no matter which style is in favour at the time.
What Are Styles?
Investment managers adopt various ways of investing your money. It is their belief that the style they have chosen is the best method of increasing your wealth. Frank Russell Canada Ltd. was one of the first investment companies to capture the influence of multiple managers' investment styles on performance. These methods can generally be categorized into one of several broad investment styles, such as growth, value, market-oriented, and small capitalization.
Growth
These managers are primarily interested in a company's earnings. They focus on investing in companies they expect to exhibit profitability and shareholder earnings greater than their industry peers.
Value
Value managers are most interested in getting a company's stock for a good price. They may purchase stocks of companies that are currently out of favor with the market, believing the stock is a good value for the price.
Market-Oriented
These managers seek to develop well-diversified portfolios with average growth and valuation characteristics similar to the broad market. Many managers seek to add value by emphasizing economic sectors they believe are undervalued.
Small Capitalization
These managers focus on smaller companies. Some of these companies are young and growing rapidly, while others are simply smaller businesses with long histories. These companies are characterized by low dividend yields and above-average volatility.
The Importance of Style
Russell uses comprehensive research, complex algorithms, and sophisticated technology to regularly evaluate fund managers for style. Confirming style is important because it ensures that your investment remains appropriately diversified over time.
When you invest in one Russell fund, your investment is diversified within each asset class into several complementary styles.
No matter which style is in favour at a particular time, Russell's blending of investment manager styles and complex style evaluation may help to reduce risk and work toward more consistent returns, making you feel more comfortable adopting, and sticking to, a long-term investment strategy.
Learn more about the Multi Manager aspect of Russell's investment approach.
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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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