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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
| 31-May-09 |
|
3 mths |
|
YTD |
|
1 yr. |
|
3 yrs. |
|
5 yrs. |
|
10 yrs. |
|
Incep.* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series A |
|
3.76 |
|
2.18 |
|
0.53 |
|
- |
|
- |
|
- |
|
2.90 |
| Number of Holdings |
432 |
| as of March 31, 2009 |
|
| Total Pool Assets: |
$211 million |
| as of March 31, 2009 |
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Summary of Investment Portfolio
| Top 25 Holdings |
|
% of net asset value of the Pool |
| As at March 31, 2009 |
|
|
| |
|
|
| Long Positions* |
|
|
| Province of Ontario 4.750%- Jun 02, 2013 |
|
5.3 |
| Government of Canada 4.250% -Dec 01, 2009 |
|
3.5 |
| Government of Canada- 3.750%- Jun 01, 2012 |
|
3.0 |
| Canadian Government 10 Year Bond ; expiration date June 2009 |
|
2.7 |
| Government of Canada-5.750%- Jun 01, 2033 |
|
2.3 |
| Province of Ontario- 4.700%- Jun 02, 2037 |
|
2.2 |
| Government of Canada-5.000%- Jun 01, 2037 |
|
2.1 |
| Province of Quebec- 4.500%- Dec 01, 2018 |
|
2.1 |
| Government of Canada-8.000%- Jun 01, 2023 |
|
2.1 |
| Province of Quebec- 5.000%- Dec 01, 2038 |
|
1.9 |
| Province of Quebec- 4.500%- Dec 01, 2017 |
|
1.6 |
| Fannie Mae 6.000% 01-May-2039 |
|
1.6 |
| Province of Quebec- 5.500%- Dec 01, 2014 |
|
1.5 |
| Ginnie Mae- 4.500%- Jan 15, 2039 |
|
1.3 |
| US Treasury-0.875%- April 15, 2010 |
|
1.3 |
| Federal National Mortgage Association Discount Note April 21, 2009 |
|
1.2 |
| Government of Canada- 4.000%- Jun 01, 2017 |
|
1.2 |
| Province of Ontario-4.300%- March 08, 2017 |
|
1.1 |
| Charter One Bank N.A., Floating Rate- April 26, 2026 |
|
0.9 |
| Province of British Columbia-4.800%- Jun 15, 2021 |
|
0.9 |
| US Treasury-4.750%- Dec 7, 2038 |
|
0.9 |
| Province of Ontario-5.000%- March 08, 2014 |
|
0.9 |
| Province of Ontario-5.000%- March 08, 2014 |
|
0.9 |
| NHA MBS Bank of Nova Scotia- 3.930%- Sept 01, 2018 |
|
0.8 |
| Fannie Mae 6.000% -April 01, 2039 |
|
0.8 |
| |
|
|
| Short Positions** |
|
|
| US 5 Year Bond; Treasury; expiration date; June 2009 |
|
-0.8 |
| Japan 10 Year Bond ; expiration date June 2009 |
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-0.4 |
| United States CBT 10 Year Treasury Bond; expiration date June 2009 |
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-0.3 |
| US 2 Year Bond; Treasury; expiration date; June 2009 |
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-0.2 |
| |
|
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| Net Asset Value (thousands of dollars) |
|
$211,033 |
| |
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| * Long positions represent 98.3% of the Pool's Net Asset Value |
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| ** Short positions represent 1.7% of the Pool's Net Asset Value |
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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 March 31, 2009 |
|
|
| Federal |
|
34.3 |
| Foreign |
|
28.4 |
| Provincial |
|
24.7 |
| Corporate |
|
6.3 |
| Municipal |
|
0.2 |
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
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- 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
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The Pool is Suitable for Investors Who
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- 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.
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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. The Russell Diversified Monthly Income
Portfolio has E-5 and E-7, I-5, I-7, F-5 and F-7 units. The Russell Retirement
Essentials Portfolio has E-5, E-6, E-7, I-5, I-6, I-7, F-5, F-6 and F-7. 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 adviser is paid a trailer
fee as compensation for providing services to you. Series F units are sold only
to investors enrolled in a fee-for-service or wrap program and these units have
a reduced management fee and do not pay trailer fees to the adviser. Instead
each investor negotiates a separate, ongoing fee that is paid directly to their
adviser and is based on the market value of the investors' assets. Series O units
are only available from Russell Investments Canada Limited and are generally
not sold to the public. They are intended to be used in fund of fund arrangements
and other wrap programs sponsored by us. They are also available to large institutional
investors or other accounts as we may determine from time to time on a case-by-case
basis. No management fees are charged to the Pools with respect to the Series
O units. Instead, each Series O investor negotiates a separate fee that is paid
directly by the investor. Series E units targets 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 Canadian Fixed Income Pool have been available
since January 1993. The Emerging Markets Equity Series A units have been available
since June 1997 and the Global Equity and Money Market Series A units have been
available since April 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 2001. Russell Core Plus Fixed Income Pool and the Series E units of all
the Russell Sovereign have been available since October 2007. Russell Core
Plus Fixed Income Pool has been available since October 2007. Russell
Retirement Essentials Portfolio has been available since March 2008. Series F-5,
F-7 and I-5 of Russell Diversified Monthly Income Portfolio have been available
since November 2005 and I-7 of Russell Diversified Monthly Income Portfolio has
been available since November 2004.
Unless otherwise noted, all the rates shown are for the period ending March 31,
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 and EAFE Indexes and MSCI Emerging Markets Index.
Date of first publish: June 5, 2009
*Inception: October 2007
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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.
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