BENEFITS OF
TRUE Multi-Asset Investing
Multi-asset funds:
1
Seek to generate
returns while
managing risk
2
Target specific
and measurable
investment outcomes
3
Are dynamically
managed
What is multi-asset investing…
and how does it differ from Balanced funds?
Multi-asset solutions differ from “traditional” balanced funds
because they target a specific investment outcome, such as a
return above inflation rather than measure performance against
a distinct benchmark. Multi-asset investing provides exposure
to a globally diverse mix of asset classes and styles.
While there are many versions of multi-asset funds, at Russell
Investments1, we believe TRUE multi-asset investing requires
the following key characteristics:
› A strategic asset allocation that focuses on specific
investment outcomes.
› Precise exposures, crafted from a wide and deep toolkit
of asset classes, factors, styles and investment managers.
4
Quickly adapt to
markets using
enhanced capabilities
5
Give you access
to "best-in-breed"
investment managers
› Dynamic portfolio management.
These characteristics result in portfolios that have broad access
to a range of investment instruments in a flexible format that can
seek out growth opportunities as the market environment changes,
while carefully managing risk.
We believe multi-asset investing can help you pursue your financial
goals by offering the following five benefits.
1
Multi-asset funds seek to generate returns while managing risk
Multi-asset solutions are dynamically exposed to securities that offer a potentially higher return,
such as equities, and those that offer typically higher yields such as emerging markets debt, as well
as securities that can offer some downside protection, such as government bonds and convertible
bonds. In addition, they are diversified across both traditional asset classes such as global equities,
and non-traditional asset classes, such as real estate or infrastructure. This diverse mix of assets is
designed to provide growth opportunities while carefully managing risk. Of course, diversification
and multi-asset investing do not assure a profit or protect against loss.
HOW YOU
MAY BENEFIT
True multi-asset investing provides upside
potential through equities and alternatives,
plus downside protection that a risk-managed
portfolio can help to deliver.
Russell Investments in action:
Traditional Balanced Portfolio versus Multi-Asset Solution
“Traditional” Balanced Growth
A Multi-Asset Strategy SAMPLE Allocation
Absolute Return
Fixed Income
11%
Equity
Emerging Market Debt
15%
Global High Yield Bond
11%
4%
Convertible Bonds
Commodities
40%
6%
5%
60%
3%
22%
6%
6%
5%
6%
Global Real Estate
Global Infrastructure
Emerging Markets Equity
Global Small Cap
Global Equity
International Equity
US Equity
For illustrative purposes only.
2
Multi-asset funds target specific and measurable
investment outcomes
Unlike “traditional” balanced funds, a multi-asset fund’s performance success is not measured against
a specific benchmark. Rather, the strategy is focused on a specific outcome – such as a targeted return
above inflation. True multi-asset can get highly specific and can provide diversifying factors even
within a precise asset allocation. For example, as part of a total portfolio solution, multi-asset vehicles
can be all growth assets, or focused on income generation, depending on the highly specific outcomes
they are trying to achieve.
HOW YOU
MAY BENEFIT
True multi-asset investing is designed
to provide measurable investment
outcomes that can potentially help you
increase your chances of reaching your
investment goals.
Russell Investments in action:
Multi-Asset Growth & Income
Multi-Asset Growth & Income - Performance net of fees (Series F)
Objective:
Income
150
Long-Term
Return Goal:
CPI + 4%
140
Risk Goal:
Half to 2/3 the
volatility of
Global Equities
Growth of $100
130
120
110
100
90
Q4/13
Q2/14
Q4/14
Q2/15
Q4/15
Q2/16
Q4/16
Q2/17
Multi-Asset Growth & Income (Series F)*
CPI + 4%
Annualized Return (6%)
Annualized Return (4%)
Q4/17
Q2/18
Q4/18
Annualized Return (8%)
Performance (%) Series F as of September 30, 2016
1 mo
ytd
1 yr
3 yrs
5 yrs
Since inception
0.5
5.5
8.0
7.9
7.9
5.9
Multi-Asset
Growth & Income
Inception date: April 1, 2010
Source: Russell Investments.
As of August 31, 2016. Past
performance is not indicative
of future results. Values in
parentheses represent total
return given the assumed rate
for inflation (CPI). Series F is
fee-for-service and as such, the
performance shown does not
include the fee paid by the
investor to the dealer that
would have reduced returns.
Performance is annualized
except for periods of less
than 1 year.
3
Multi-asset funds are dynamically managed
A true multi-asset portfolio is designed to navigate potential market shifts, through tactical trades,
tilts and precise factor exposures. It has the flexibility to respond to changing market conditions,
seeking out areas of greater potential return while attempting to avoid sectors that could add
unnecessary risk to a portfolio. Multi-asset funds have the freedom to invest across a broad
range of assets, seizing emerging growth opportunities as they appear while striving to remain
within a determined risk profile.
Multi-asset solutions rely on dynamically allocating portfolios based on strategy views and outlooks.
Therefore there is the risk the perspectives may not be realized.
HOW YOU
MAY BENEFIT
True multi-asset investing dynamically adjusts its
exposure to take advantage of short-term opportunities
for more potential return or to avoid unnecessary risk.
This approach aims to provide smoother positive returns
over time.
Russell Investments in action:
Multi-Asset Growth Strategy – Strategic Asset Allocation and Tactical Bands
around asset classes
Asset Class
Neutral Weighting
Range
Equity
55%
Real assets
15%
Fixed income
15%
Fixed income 0% - 30%
Absolute return
15%
Absolute return 0% - 30%
Combined range 50% - 100%
Due to the dynamic nature of the portfolio this allocation will continue to evolve with market conditions. The Multi-Asset
Growth Strategy is a dynamic, diversified portfolio designed to capture market opportunities and manage risk. The underlying
allocations to various asset classes will shift over time, but the overall strategic allocation will remain 55% equity, 15% real
assets, 15% fixed income and 15% absolute return.
4
Multi-asset funds quickly adapt to markets using
enhanced capabilities
True multi-asset portfolios provide actively managed exposure to various sectors, asset classes,
geographies and market capitalizations, giving you access to the broadest possible investment
universe. Multi-asset portfolios can also implement derivative-based strategies which allow
the portfolio manager to steer the funds in pursuit of the desired investment outcome through
risk management and return-seeking positions. Options can be used to implement downside
protection, currency forwards can be used to implement currency hedging while futures allow
for direct exposure to specific markets.
As with all mutual
funds, investment in
this mutual fund contains
risks that may make
it unsuitable for you,
depending on your
investment objectives
and risk tolerance. If the
fund does not perform
as intended, you may
experience a loss of part
or all of your principal
invested. Please read the
prospectus of this fund
for a detailed description
of the risks involved in
this investment.
HOW YOU MAY BENEFIT
Although strategic asset allocation is critical to long-term investment
success, over a shorter-term horizon, the ability to dynamically adapt
to changing market conditions through tactical positioning and
enhanced capabilities can help the portfolio navigate through volatility.
Using derivatives in conjunction with the broad active management allows
the portfolio manager to adjust the portfolio in a quick and cost-efficient
manner by reducing the time to implement trades and the transaction
costs involved. This allows the portfolio manager to get the portfolio to
its desired positioning quickly and effectively as markets are moving.
Russell Investments in action:
Flexibility to increase
or decrease
Examples of our expanded toolkit
options
For illustrative purposes only.
futures
currency
hedging
5
Multi-asset funds give you access to "best-in-breed"
investment managers
True multi-asset investing gives you access to some of the world’s leading investment
opportunities and money managers through an open architecture approach.
HOW YOU
MAY BENEFIT
By combining independent money managers
from around the globe in a single fund — not just
managers who work for one fund company —
you potentially get access to "best-in-breed"
managers for the most recognized asset classes.
Russell Investments in action:
Access to leading edge investment strategies through Multi –Asset Growth & Income
FIXED INCOME
Absolute
Return
Strategies
Convertible
Bonds
East Coast
Fund
Management,
Inc.
BlueBay
Global
Convertible
Bond Fund
(Canada)
Goldman
Sachs Asset
Management
L.P.
Pioneer
Investment
Management
Limited
Investment
Grade
Bonds
EQUITIES
High
Yield
Bonds
Philips, Hager DDJ Capital
& North™ Management,
LLC
AEGON Capital
Emerging
Markets
Debt
Canadian
Equities
Global
Equities
REAL ASSETS
Emerging
Markets
Equities
Listed
Real Estate
Listed
Infrastructure
Edmond de
Rothschild
Asset
Management
(France)
Foyston,
Perkins
Alliance
Morgan
Colonial
Gordon &
Investment
Bernstein
Stanley
First State
Payne Inc. Management Canada, Inc.
Investment
Asset
Management, Management
Perkins
Harris
Delaware
Management Logan Circle
Inc.
Australia
Investment
Associates
Investment
Inc.
Partners, LLC
(Limited)
Advisers
Deutsche
Lazard Asset Management Fiera Capital
Beutel,
Axiom
Asset
&
Wealth
Nuveen
Asset
Management
Iris Asset
Coeli Asset
Goodman &
Alternative (Canada), Inc. Management
Management Management,
Management
Company Ltd.
Investments
(RREEF
LLC
Ltd.
S.A.
Canso
SARL
America L.L.C.) Cohen & Steers
Rondeau
RWC Partners
Investment
Capital
Capital Inc.
Limited
Counsel Ltd.
Management,
QV Investors
JO Hambro
Pacific
Inc.
Inc.
Capital
Investment
Management
Management
CGOV Asset
Limited
Company LLC
Management
Leith Wheeler
Investment
Counsel Ltd.
Russell Investments positioning strategies*
Sub-advisers listed are current as of September 2016. Russell Investments has the right to engage or terminate a sub-adviser
at any time and without notice.
*The fund’s portfolio manager may invest up to 5% of the fund in a Positioning Strategy, managed by Russell Investments
Implementation Services to help mitigate risks within the overall portfolio.
learn more about how our multi-asset solutions can help
› Topursue
investment outcomes, contact us at 1-888-509-1792 or
[email protected]
Russell Investments Canada Limited is a wholly owned subsidiary of Emerald Acquisition Limited and was established in 1985. Russell Investments Canada
Limited and its affiliates are referred to collectively as Russell Investments.
1
IMPORTANT INFORMATION
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before
investing. The indicated rates of returns are the historical annual compounded total returns including changes in unit/share value and reinvestment of all
dividends or distributions, and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that
would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Nothing in this publication is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment,
nor a solicitation of any type. This information is made available on an “as is” basis. Russell Investments Canada Limited does not make any warranty or
representation regarding the information.
As with all mutual funds, investment in this mutual fund contains risks that may make it unsuitable for investors, depending on their investment objectives and
risk tolerance. If the fund does not perform as intended, an investor may experience a loss of part or all of their principal invested. Please read the prospectus of
this fund for a detailed description of the risks involved in this investment.
Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.
Russell Investments is the operating name of a group of companies under common management, including Russell Investments Canada Limited.
Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by
Reverence Capital Partners and Russell Investments’ management.
Copyright © Russell Investments Canada Limited 2016. All rights reserved.
Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which
the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell
Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.
Date of first publication: September 2016
RETAIL-2016-09-15-1828 [EXP-09-2017]