Russell Investments has launched a global equity fund that seeks long-term capital appreciation and low absolute volatility.
The Global Defensive Equity fund is intended to meet investor demand for growth with downside protection, Russell Investments said.
The fund is benchmarked against the Russell Global Defensive Index (RDI), which incorporates both low volatility and high quality measures. The portfolio is build around Russell Investments' research into low volatility and defensive investing.
The manager said it has identified three distinct strategies within the defensive space that have significant excess return potential: managed volatility, absolute value and yield oriented. High conviction managers have been selected for each strategy.
Phil Hoffman, portfolio manager said: "Investors are increasingly seeking growth exposure with some downside protection and the new fund has been designed to specifically address this requirement. The fund combines the strengths of our Global Defensive Index approach with the opportunity for added value from Russell's industry-leading manager research."
"Taking an active approach rather than opting for index replication strategies allows investors access to a wider variety of defensive strategies as well avoiding obvious areas of overvaluation within the low beta segments of the market. The new fund is designed to give investors stand-alone equity exposure or to complement existing global equity and diversified growth strategies."
Today on Investment Europe
David Sugarman, fund manager for Polar Capital, will discuss convertible bonds at the InvestmentEurope Pension Fund Forum held in Zurich on 15 May.
Anna Paula Harris, portfolio strategist for the global equity beta solutions group at State Street Global Advisors (SSgA), will address smart beta strategies at the InvestmentEurope Pension Forum to be held in Zurich on 15 May.