“The demand for income solutions is as great as it has ever been, so this is driving many investors to prioritize short-term income over long-term growth by ‘reaching for yield.’ In this pursuit they are potentially jeopardizing their future income needs,” says Phill Rogerson, managing director, consulting and product, for Russell Investments’ U.S. adviser-sold business.
The new fund, available via financial professionals, invests across a set of asset classes with both income and growth potential using a team of specialist money managers and strategies. Additionally, recognizing that market opportunities will likely change over the course of an investor’s time horizon, the fund has built-in flexibility to seek to adapt to risk and opportunities using dynamic portfolio management. Russell says the new fund is available for defined contribution (DC) retirement plans.
Brian Meath, senior portfolio manager, and Rob Balkema, portfolio manager, have primary responsibility for the management of the fund. “We are looking beyond bonds and borders to deliver a truly global, multi-asset, income-oriented fund,” says Meath.
The fund invests in a broad range of globally diversified income-producing equity, real assets and fixed-income securities. A team of specialist third-party managers has been assembled based on their specific expertise in income-producing investments, such as listed infrastructure, real estate investment trusts (REITs), global equity, emerging market debt and global credit. Russell Investments also directly manages a portion of the fund’s assets.