Russell offers USD series of Managed Yield Class

Russell Investments Canada announced that it is launching a new US Dollar Series of its Russell Managed Yield Class, a fixed income solution that meets the needs of conservative investors looking for a well diversified, tax efficient fixed income solution with built in protection from the USD/CAD currency fluctuations.

“Many investors are wondering how to manage the volatility between the Canadian and U.S. dollars”, said David Feather, president and CEO Russell Investments Canada Limited. “With this new innovative series, you have the benefit of being invested in high quality Canadian assets while minimizing the USD/CAD currency fluctuations—something which would be of great interest to conservative investors who have significant assets or property interests in the U.S., such as ‘snowbirds’ who want to minimize the risk associated with movements of the USD/CAD exchange rate.”

The Russell Managed Yield Class – US Dollar Series provides investors with access to a well diversified, tax efficient fixed income portfolio now with a built in currency hedging strategy, to protect them from the USD/CAD exchange rate movements. For investors seeking a U.S. dollar monthly income, the new Series also offers a 5% (I5) annual distribution series, paid monthly in U.S. dollars, using return of capital. This is a great option for investors looking for a U.S. dollar monthly income stream.

“Given the significant U.S. holdings by many Canadian investors, we believe the Russell Managed Yield Class – US Dollar Series is a great alternative to U.S. GICs and high interest savings accounts, which offer little return potential in this environment” says Greg Nott, portfolio manager Russell Investments Canada. “Your initial investment is made in U.S. dollars, which Russell converts into Canadian in order to purchase the underlying securities of the fund. Russell then uses a currency hedging strategy to protect your investment from future USD/CAD currency fluctuations.”

The Russell Managed Yield Class -US Dollar Series offers best of breed sub-advisers. The underlying asset exposure (to Russell Canadian Fixed Income Fund) is sub-advised by three institutional fixed income managers, each with their own areas of specialization: Canso Investment Counsel, Pacific Investment Management (PIMCO) and Beutel Goodman & Company.

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