Russell Investments announces intention to cap purchases of the Russell Fixed Income Class & Russell Global High Income Bond Class

TORONTO, April 8, 2013 /CNW/ - Russell Investments Canada Limited (Russell) continues to assess the implications of the Federal Budget of March 21, 2013 that limits the use of forward contracts to effectively convert investment income to capital gains in investment funds, also referred to as "character conversion transactions".

To ensure the Russell Fixed Income Class and the Russell Global High Income Bond Class are being managed in a manner that achieves tax-efficiency for existing shareholders, Russell has decided to close new and additional investments in these funds effective as of the close of business Friday, April 12, 2013.

Although Russell is seeking further clarification regarding the budget measures, it appears that increasing the size of existing character conversion transactions is not permitted and that transactions in place prior to March 21, 2013 are expected to remain tax-efficient until their expiration dates. The two funds are expected to provide tax-efficient exposure to their underlying portfolios until 2017 when the current forward transactions expire.

This announcement does not impact the sale of other class funds within the corporate class structure, and it is important to note that the original benefits of corporate class investing remain in effect, such as the ability to defer tax when switching between funds within the same family of corporate class funds, and the ability to potentially reduce taxable distributions.

About Russell Investments

Russell Investments (Russell) is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Working with institutional investors, financial advisors and individuals, Russell's core capabilities extend across capital market insights, manager research, portfolio construction, portfolio implementation and indexes.

Russell has approximately $163 billion in assets under management (as of 12/31/2012) and works with over 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell has $2.4 trillion in assets under advisement (as of 6/30/2012). It has four decades of experience researching and selecting investment managers and meets annually with more than 2,200 managers around the world. Russell traded more than $1.4 trillion in 2012 through its implementation services business. Russell also calculates approximately 700,000 benchmarks daily covering 98% of the investable market globally, which includes more than 80 countries and more than 10,000 securities. Approximately $3.9 trillion in assets are benchmarked to the Russell Indexes.

Headquartered in Seattle, Washington, Russell operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Toronto, Chicago, San Diego, Milwaukee and Edinburgh. For more information about how Russell helps to improve financial security for people, visit www.russell.com or follow @Russell_News.

Important information

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.

Russell Investments and the Russell Investments logo are either trademarks or registered trademarks of Frank Russell Company, used under license by Russell Investments Canada Limited.

Russell Investments Canada Limited is a wholly owned subsidiary of Frank Russell Company and was established in 1985. Russell Investments Canada Limited and its affiliates, including Frank Russell Company, are collectively known as "Russell Investments".

Copyright © Russell Investments Canada Limited 2013. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. 

SOURCE: Russell Investments Canada Limited

Rob Baird
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Beja Rodeck
416.825.2125

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