Russell Investments Canada has introduced an inflation-linked bond fund for institutional investors.
The Russell Inflation Linked Bond Fund expects to invest primarily in inflation-linked bonds issued by governments of Canada is designed to provide a stable level of interest income that is hedged against inflation.
The company says Canadian pension plans are taking advantage of strong funding levels to reduce the risk of future liabilities, often by implementing fixed income strategies, and they are looking for a variety of fixed income investment vehicles to help achieve desired investment outcomes.
“The environment is changing for Canadian investors, with dynamic risk management coming to the forefront after a few years of market growth and improving funding levels,” says David Feather, president and CEO of Russell Investments Canada Ltd.
The firm believes this new offering will be of interest to Canadian pension funds and other institutional investors applying de-risking strategies to match future liabilities.
Chief investment officer Greg Nott will oversee the fund as portfolio manager while day-to-day portfolio management services will be provided by Kelly Mainelli, part of Russell Investments global fixed income team and based in the company’s global headquarters in Seattle.
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