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Russell Managed Yield Class has added new income distribution options, aimed at increasing income but not taxes.

Investors now have annual distribution options of 3% or 5% that are paid monthly. The distributions are made up of return of capital, rather than interest income. Russell claims tax savings can be found through the distribution options of Russell Managed Yield Class versus a traditional fixed income fund.

“Fixed income investments provide interest income that is taxed at nearly twice the rate of capital gains,” explains Keith Pangretitsch, director of national sales at Russell Investments Canada Limited. “Russell Managed Yield Class solves this problem by distributing tax efficient income. As a result, you can increase your cash-flow with these new distribution options, not your tax bill.”

The assets of Russell Managed Yield are sub-advised by third-party fixed income managers through its reference fund the Russell Canadian Fixed Income Fund and offers a multi-manager approach.

– John Powell

• • •

U.S. billionaires pledge wealth to charity

Forty wealthy families and individuals have joined Microsoft Corp. co-founder Bill Gates and billionaire investor Warren Buffett in a pledge to give at least half their wealth to charity.

Six weeks after launching a campaign to get other billionaires to donate most of their fortunes, the chairman and CEO of Berkshire Hathaway Inc. released the first list Wednesday of people who have signed what he and Gates call the “giving pledge.”

Buffett decided in 2006 to give 99% of his fortune to charity.

Then, he was worth about US$44 billion.

After five years of investment returns while making annual gifts to five foundations, Buffett’s fortune totals nearly $46 billion.

In addition to making a donation commitment, Gates and Buffett are asking billionaires to pledge to give wisely and learn from their peers.

– Associated Press

(08/04/10)