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Russell Diversified Monthly Income Portfolio
Series I and Series F Units
Goal
To provide income and long-term capital growth primarily through exposure to Canadian and foreign equity securities and, to a lesser extent, exposure to fixed-income investments.
Target asset allocation
Rusell Fixed Income Pool — 20%
Rusell Core Plus Fixed Income Pool — 20%
Russell Canadian Equity Pool — 20%
Russell US Equity Pool — 14%
Russell Overseas Equity Pool — 13%
Russell Global Equity Pool — 13%
The Portfolio intends to use futures contracts for non-hedging purposes in order to obtain equity exposure on its cash position. The Portfolio will typically hold cash so that it can meet anticipated redemption requests without selling portfolio securities. We expect to use futures to allow the Portfolio to hold cash while receiving a return, which is similar to that of the Portfolio's benchmark.
Who should invest in this fund?
The Russell Diversified Monthly Income Portfolio is suitable for those investors who:
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- want to receive monthly distributions and are willing to accept a return of capital
- want to invest in equities and fixed income
- have a moderate tolerance for risk
- are looking for medium to long-term growth
- can tolerate volatility in the short term
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Distribution policy
It is the current intention to distribute between 5% to 9% of the value of the Pool each year, regardless of whether the Pool earned that much in income. Each year, we will fix the annual distribution rate for that year, and this shall be expressed as a fixed amount per share.
The Pool will pay distributions monthly and will distribute any excess income and capital gains annually, in December. The character for Canadian tax purposes of distributions received by you during the year from the Pool will not be determined with certainty until the end of the Pool's taxation year. At such time, the income of the Pool will be allocated to all unitholders who received a distribution from the Pool during the year. This allocation of income, including the particular character of the Pool's income, will be pro rated based on the Pools total distributions for the year.
If the Pool's income was less than the annual distribution rate for that year, then the distribution will include a return of capital. If an investor elects to receive their monthly distribution in cash and not re-invest distributions, it is expected that the value of their investment in this Portfolio will decline over time.
Portfolio distributions will automatically be distributed to you in cash unless you inform Russell in writing that you prefer to have your distributions reinvested in additional securities. Distributions by the Pool are not guaranteed to occur on a specific date and the Pool is not responsible for any fees or charges incurred by you because the Pool did not effect a distribution on a particular day.
Investment performance*
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3 mths |
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YTD |
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1 yr. |
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3 yrs. |
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5 yrs. |
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10 yrs. |
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Incep.* |
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| Series I-71 |
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4.26 |
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13.50 |
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12.97 |
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-1.94 |
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2.77 |
| Series I-51 |
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4.26 |
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13.50 |
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12.97 |
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-1.94 |
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1.29 |
| Total pool assets: |
$593 million |
| as of June 30, 2009 |
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Summary of the investment portfolio
| Top 25 Holdings* |
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% of net asset value of the Portfolio |
| As at June 30, 2009 |
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| Russell Core Plus Fixed Income Pool Series O Units |
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20.1 |
| Russell Fixed Income Pool Series O Units |
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20.1 |
| Russell Canadian Equity Pool Series O Units |
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20.0 |
| Russell US Equity Pool Series O Units |
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13.7 |
| Russell Global Equity Pool Series O Units |
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13.4 |
| Russell Overseas Equity Pool Series O Units |
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13.4 |
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| Net Asset Value (thousands of dollars) |
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$592,813 |
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| * This Portfolio has only 6 holdings as at June 30, 2009 |
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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.
Other information
Eligibility for registered plans: This Pool is intended to be an eligible investment for registered plans.
Foreign property tax status: This Pool is not foreign property under the Income Tax Act (Canada).
Further information about the underlying funds is available at www.sedar.com
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.
Date of first publish: November 4, 2009
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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.
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© Russell Investments Canada Limited 2009. All Rights Reserved.
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