New portfolio offers low-medium risk investors diversified, stable returns with competitive costs
Russell Investments Canada Limited announced the launch of a balanced portfolio, integrating strategic allocations to its two flagship funds: the Russell Investments Global Equity Pool at 60 percent and the Russell Investments Fixed Income Pool at 40 percent.
This new offering, named the Russell Investments Global Balanced mandate, is tailored for investors with a low-to-medium risk profile, aiming to deliver both enhanced diversification and improved risk management at a competitive price point.
Jordan McCall, director, and senior portfolio manager of Equity at Russell Investments highlighted the portfolio's design to blend equities and bonds—assets that historically have shown low correlations—to provide a robust return potential with reduced volatility.
“This sophistication-made-simple portfolio for Canadian investors offers stability and steady income potential from fixed income, strategically balanced with growth potential from global equities,” McCall explained.
He emphasized the importance of this approach in navigating the complexity of current market dynamics and the shifting landscape of global investment opportunities.
The foundation of the Russell Investments Global Balanced portfolio is the proven record of accomplishment of its underlying pools, each boasting over 23 years of delivering strong risk-adjusted returns to Canadian investors.
The portfolio is managed by eight institutional asset managers, each with specific roles aimed at diversifying across multiple fixed income sectors and global equity strategies.
The Global Equity Pool gains its diversified global equities exposure through sub-advisers such as Intermede Investment Partners Limited/Intermede Global Partners, Sanders Capital, Wellington Management Canada, and Russell Investments itself.
Meanwhile, the Fixed Income Pool aims to provide stable cash flow and income, featuring sub-advisers like Beutel, Goodman & Company, Canso Investment Counsel, Leith Wheeler Investment Counsel, Western Asset Management, and Russell Investments, each bringing a complementary investing style to the table.
McCall, who has been with Russell Investments since 2006, will oversee the new portfolio, including the coordination of external manager assignments.
He reiterated the goal of achieving strong returns with minimized volatility through this balanced approach, stating, “By blending equities and bonds, which have historically exhibited low correlations, into a single solution, we’re looking to achieve strong returns with less volatility to help investors meet their goals.”
McCall further noted the combination of Russell Investments' sophisticated capabilities across these asset classes to create a straightforward yet distinctive portfolio that stands out for its competitive cost structure.
