|
|
|
|
 |
|
Russell Core Plus Fixed Income Pool
Series A Units
Goal
To provide diversification against equities by utilizing a broad range of available fixed income strategies and investing in fixed income securities of both Canadian and non-Canadian issuers.
Target allocation
(Actual manager allocation may vary)
| Style |
|
Weight |
|
Manager |
| |
|
|
|
|
| Security Selection and Global |
|
33% |
|
Goldman Sachs Asset Management |
| Sector Selection and Global |
|
33% |
|
Sanford C. Bernstein |
| Interest Rate Management and Global |
|
34% |
|
Pacific Investment Management Co. |
Investment performance
| |
|
3 mths |
|
YTD |
|
1 yr. |
|
3 yrs. |
|
5 yrs. |
|
10 yrs. |
|
Incep.* |
| Series A |
|
3.36 |
|
9.72 |
|
14.82 |
|
-- |
|
-- |
|
-- |
|
5.99 |
| Total number of holdings: |
464 |
| as of June 30, 2009 |
|
| Total pool assets: |
$227 million |
| as of June 30, 2009 |
|
Summary of the investment portfolio
| Top 25 Holdings |
|
% of net asset value of the Pool |
| As at June 30, 2009 |
|
|
| |
|
|
| Long Positions* |
|
|
| Canadian Government 10 Year Bond; expiration date September 2009 |
|
9.1 |
| Government of Canada |
|
7.4 |
| Province of Ontario |
|
4.4 |
| Government of Canada |
|
4.1 |
| Government of Canada |
|
3.0 |
| Province of Quebec |
|
3.0 |
| Government of Canada |
|
2.1 |
| Province of Quebec, Series 'B088' |
|
1.8 |
| Government of Canada |
|
1.7 |
| Province of Quebec |
|
1.6 |
| Canada Housing Trust No. 1 |
|
1.5 |
| Province of British Columbia, Series 'Q' |
|
1.4 |
| United States Treasury Inflation Indexed Bond, Callable |
|
1.3 |
| Province of Quebec, Series 'B079' |
|
1.3 |
| Province of Quebec |
|
1.3 |
| Province of British Columbia |
|
1.1 |
| Province of Ontario |
|
1.0 |
| Province of Ontario |
|
1.0 |
| Government of Canada |
|
0.9 |
| Province of Ontario |
|
0.9 |
| Canada Housing Trust No. 1, Series '1' |
|
0.9 |
| Canada Housing Trust No. 1 |
|
0.9 |
| NHA MBS Bank of Nova Scotia |
|
0.9 |
| Province of Quebec, Real Return |
|
0.8 |
| Wells Fargo Financial Canada Corp., Floating Rate |
|
0.8 |
| |
|
|
| Short Positions** |
|
|
| United States CBT 5 Year Treasury Note ;expiration date September 2009 |
|
-3.0 |
| United States CBT 10 Year Treasury Note ;expiration date September 2009 |
|
-2.7 |
| German EURO-BOBL Futures; expiration date September 2009 |
|
-0.4 |
| Australian 3 Year Bond Futures; expiration date September 2009 |
|
-0.3 |
| Euro-Schatz Futures; expiration date September 2009 |
|
-0.2 |
| UK Long GILT Futures; expiration date September 2009 |
|
-0.1 |
| |
|
|
| Net Asset Value (thousands of dollars) |
|
$227,117 |
| |
|
|
| * Long positions represent 93.3% of the Pool's Net Asset Value |
|
|
| ** Short positions represent 6.7% of the Pool's Net Asset Value |
|
|
Note: The statement of investment portfolio may change due to ongoing portfolio transactions of the Portfolio. This list will be updated within 60 days of each quarter end and is available on our website- www.russell.com/ca.
| Sector Weights |
|
% of net asset value of the fund |
| As at June 30, 2009 |
|
|
| Federal |
|
26.4 |
| Foreign |
|
33.2 |
| Provincial |
|
27.4 |
| Corporate |
|
11.0 |
| Municipal |
|
1.3 |
Introducing Core Plus
Innovation: The Canadian fixed income landscape is currently undergoing an evolution, and the Core Plus Fixed Income Pool ensures that clients remain on the leading edge of fixed income strategies and products.
Increased Return Potential: Core Plus is an alternative to our Russell Canadian Fixed Income Pool. The strategy provides a wider opportunity set by expanding client investment guidelines to include certain "non-core" fixed income sectors, such as non-Canadian high yield, currency and emerging markets debt securities.
Enhanced Diversification: This additional flexibility offers the benefits of added diversification by utilizing sectors with lower correlations to traditional fixed income, as well as the potential for higher levels of excess returns relative to core fixed income.
Greater Access to Foreign Markets: The Core Plus approach has been a well-established fixed income strategy in the U.S. over the past 15 years and has more recently gained popularity amongst institutional investors in Canada. Core Plus is an ideal strategy at a time when foreign investing restrictions have been eliminated and there are greater opportunities for excess return in the global fixed income market.
Key Benefits
| |
- Provides an effective complement to a balanced portfolio, by seeking increased performance of the fixed income segment of the portfolio while not significantly increasing the total risk.
- Increased diversification, due to a wider opportunity set, lower associated correlations, and less reliance on duration.
- Fixed income securities of non-Canadian issuers
|
The Pool is Suitable for Investors Who
| |
- Have a moderate tolerance for risk and a medium time horizon.
- Seek a higher level of fixed income return potential, contributing to the fixed income component of a diversified portfolio.
- Want to receive interest income in their portfolio.
|
Each Pool in the Russell Sovereign Investment Program® (other than Russell Diversified Monthly Income Portfolio and Russell Retirement Essentials Portfolio) offers Series A, B, E, F and O, units except for the Russell Canadian Dividend Pool which does not offer Series A. The Russell Diversified Monthly Income Portfolio offers E-5, E-7, I-5, I-7, F-5, F-7 and OS units. The Russell Retirement Essentials Portfolio offers B, E-5, E-6, E-7, I-5, I-6, I-7, F-5, F-6, F-7 and O units. The returns of each series of units may differ as a result of varying fees and expenses. Series A and B units have the same management fee. Your dealer is paid a trailer fee as compensation for providing services to you. Series F units (Fee-Based Securities) are available only to investors who participate in an eligible wrap or fee-for-service program. Fee Based Securities have a reduced management fee. We do not pay trailer fees to dealers for Fee Based Securities. Instead each investor negotiates a separate, ongoing fee that is paid directly to his or her dealer and is based on the market value of the investor's assets.
Series O and OS units generally are not sold to the public and are intended to be used in fund-on-fund investments and other wrap programs sponsored by us. These series also are available through us to large institutional investors and other accounts as we may determine from time to time on a case-by-case basis. Each investor in these series negotiates a separate fee that is paid by the investor directly to us.. No management fees are charged to the Pools with respect to the Series O and OS units. Instead, each Series O and OS investor negotiates a separate fee that is paid directly by the investor. Series E units are intended for large investors and as such, have a higher minimum investment and a lower trailer and management fee. For more information about our Pools please see Legal Information.
Series A units of Russell Canadian Equity Pool, Russell US Equity Pool, Russell Overseas Equity Pool and Russell Fixed Income Pool have been available since January 4, 1993. The Emerging Markets Equity Series A units have been available since January 29, 1997 and the Global Equity and Money Market Series A units have been available since January 22, 1998. With the exception of Russell Diversified Monthly Income Portfolio, Russell Retirement Essentials Portfolio and Russell Core Plus Fixed Income Pool, Series B and F units of all the pools have been available since December 19, 2000. Russell Core Plus Fixed Income Pool and the Series E units have been available since October 24, 2007. Russell Core Plus Fixed Income Pool has been available since October 24, 2007. Russell Retirement Essentials Portfolio has been available since March 14, 2008. Series F-5, F-7 and I-5 of Russell Diversified Monthly Income Portfolio have been available since October 27, 2005 and I-7 of Russell Diversified Monthly Income Portfolio has been available since November 4, 2004.
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.
Unless otherwise noted, all the rates shown are for the period ending June 30, 2009. The rates shown are compounded yearly. They also include changes in unit value and all money that has been re-invested.
Data sources include: S&P/TSX Composite Index, DEX Universe Bond Index and DEX 30-day T-bills, Bank of Canada: Consumer Price Index, GIC's and Conventional Mortgages, Standard and Poor's 500 Index, Dow Jones Industrial Average, MSCI Regional, MSCI EAFE Indexes and MSCI Emerging Markets Index.
Note: The statement of investment portfolio may change due to ongoing portfolio transactions of the Pool. This list will be updated within 60 days of each quarter end.
*Inception: October 2007
Date of first publish: November 4, 2009
|
|
|
|
Products and services described on these websites are intended for Canadian residents only. Information on these sites should not be considered a solicitation to buy or an offer to sell a security to any person. Persons outside Canada may find more information about products and services available within their jurisdictions by going to Russell's worldwide site, http://www.russell.com.
Legal Information Privacy Policy
Required Sales Disclosure
© Russell Investments Canada Limited 2009. All Rights Reserved.
|
