Investor Services 
  
Russell Sovereign Investment Program 
Sample Portfolios 
Canadian Equity Pool 
U.S. Equity Pool 
Overseas Equity Pool 
Emerging Markets Equity Pool 
Global Equity Pool 
Fixed Income Pool 
Core Plus Fixed Income Pool
Money Market Pool 
Diversified Monthly Income Portfolio 
Retirement Essentials Portfolio 
  
Russell LifePoints Portfolios 
  
Russell Corporate Class 
  
Russell Retirement Solutions 
  
Russell Financial Health Index 
  
How to Invest With Russell 
  
Institutional Solutions 
  
Proxy Voting 
Russell.com Home



Russell Core Plus Fixed Income Pool
Series A Units

JUMP AHEAD TO


Summary of Investment Portfolio
Introducing Core Plus
Key Benefits
The Pool is Suitable for Investors Who


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

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   -0.4
United States CBT 10 Year Treasury Bond; expiration date June 2009   -0.3
US 2 Year Bond; Treasury; expiration date; June 2009   -0.2
     
Net Asset Value (thousands of dollars)   $211,033
     
* Long positions represent 98.3% of the Pool's Net Asset Value    
** Short positions represent 1.7% 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 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
 
  • 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. 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

Top






Printer friendly version of this page
Send feedback or comments
Site Search


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.