Toronto-based Russell Investments Canada Ltd. is launching Multi-Asset Income Strategy (MAIS) fund, expanding the firm’s line-up of income-focused mutual funds.
MAIS will offer exposure to a range of asset classes, “including equities, fixed-income, real assets and absolute return portfolio segments,” the firm’s news release says.
In addition, the firm has also tweaked the asset allocation for three multi-asset portfolios, namely, Multi-Asset Income Strategy, Multi-Asset Growth & Income and Multi-Asset Growth Strategy.
Multi-Asset Growth Strategy’s fixed-income allocation has increased to 20%, absolute return is down to 5%, real assets is up at 16% and equity is up at 59%. (A full list of the new asset allocations is available in the firm’s release.)
High equity valuations, potential for greater market risk and uncertainty over U.S. government policies are among some of the reasons cited for the recent move to change the asset allocation for certain portfolios.
“Overall, the changes increase exposure to non-domestic markets, defensive equities, and non-traditional asset classes such as commodities,” says Greg Nott, chief investment officer and senior portfolio manager with Russell Investments Canada, in a statement. “We also have expanded the sources of potential income through a broader range of fixed-income assets such as real-return bonds, convertible bonds and emerging-markets bonds.”
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