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Russell Investments mutual-funds

Russell Strategic Call Overwriting Fund

Fund objective
The Fund seeks to provide total return with lower
volatility than U.S. equity markets.

Investment strategy

  • The Fund invests principally in equity securities economically tied to the U.S., which primarily include common stocks of large and medium capitalization companies.

  • The Fund also writes (sells) index call options, typically on broad-based securities market indexes. The combination of buying common stocks and selling call options is known as call overwriting.

  • The Fund seeks investment results that exceed the total return of and closely correspond to the volatility of the CBOE S&P 500 BuyWrite Index (BXMSM) Index through a combination of returns on equity investments and premiums (cash received) from the sale of index call options.

  • The Fund seeks gains from writing call options and from its equity portfolio and seeks income from dividends on stocks held.

Call overwriting portfolio

Under normal circumstances, the Fund continuously writes (sells) index call options, typically on broad–based securities market indexes. The Fund writes index call options within a predefined strike range (i.e., the price at which the call option can be exercised by the purchaser) which varies from slightly in–the–money to slightly to moderately out–of–the–money, meaning that option exercise prices may be either higher or lower than the current price level of the index at the time the options are written. The Fund typically writes index call options with weekly and monthly tenors (i.e., the amount of time left until expiration).

As of 12/31/2015
Updated quarterly

    Cusip   Ticker
Class S   78249R776   ROWSX

Total net assets (All classes)   $0.1 billion
Net asset value (Class S)   $11.06

Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus containing this and other important information can be obtained by calling 800-787-7354 or by visiting the prospectus and reports page to download one. Please read the prospectus carefully before investing.

not FDIC insured

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

This Fund is a new fund. There can be no assurance that it will grow to an economically viable size, in which case it may cease operations. This Fund may be required to liquidate or transfer its investment in the Underlying Fund at an inopportune time.

The Fund call option writing (selling) strategy may limit its opportunity to gain from an increase in the market value of its equity portfolio and, conversely, may not reduce the extent of Fund losses during market declines. The Fund uses multi–factor quantitative models to select stocks and guide its sale of index call options. Quantitative models may be flawed and may cause the Fund to underperform other funds with similar investment objectives and strategies. The Fund equity returns may not match or achieve a high degree of correlation with the returns of the S&P 500 Index due to differences in security holdings, operating expenses, transaction costs, cash flows, operational inefficiencies and tax considerations.

S&P 500 Index is an index, with dividends reinvested, of 500 issues representative of leading companies in the U.S. large cap securities market.

CBOE S&P 500 BuyWrite Index (BXMSM) Index is a passive total return index based on (1) buying an S&P 500 stock index portfolio, and (2) "writing" (or selling) the near-term S&P 500 Index (SPXSM) "covered" call option, generally on the third Friday of each month. The SPX call written will have about one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out of the money). The SPX call is held until expiration and cash settled, at which time a new one-month, near-the-money call is written.

Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

For more information on Russell Funds, contact your investment professional or plan administrator for assistance.

Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group.

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Copyright © Russell Investments 2007-2016. All rights reserved.
First used April 2009
Revised: January 2013

Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.


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