Russell Launches Multi-Manager Commodity Strategies Fund

Added to Asset Allocation Products, New Fund Offers More Global Diversification Opportunities

TACOMA, Wash.--(BUSINESS WIRE)-- Russell Investments announced today the launch of a new mutual fund that will pursue a commodities strategy with the aim of delivering portfolio diversification and exposure to the long-term performance of global commodity markets. The Russell Commodity Strategies Fund is built on Russell’s strong heritage in portfolio management and investment research, including decades of industry-leading investment manager research and capital markets insight.

The new fund is the first U.S. multi-manager mutual fund with a specific commodities mandate. Russell initiated the fund, which is consistent with the firm’s multi-manager, multi-style investment approach, by bringing together two investment managers from separate investment management firms with extensive commodities experience – Credit Suisse Asset Management and Goldman Sachs Asset Management. Both managers have tailored mandates in order to meet the fund’s investment objective.

“In the continued search for better diversification and broader global opportunities, some investors are looking beyond traditional markets to commodities and real assets. While volatile on their own, when included as a small part of a well-diversified portfolio, a commodities strategy has the potential to lower a portfolio’s overall long-term volatility,” said James Ind, portfolio manager at Russell. “Russell already offers commodities strategies to clients in other markets around the world as well as U.S. foundations and endowments, and now we can provide U.S. retail clients with the opportunity to invest in these strategic assets.”

Russell has added the Commodity Strategies Fund as a new underlying fund to its asset allocation strategies, including LifePoints® Funds, Target Date Series and Target Portfolio Series. The fund also is available as a standalone fund for those advisors who wish to provide their clients with exposure to energy, industrial metals, livestock, precious metals, grains and softs.

“Russell has long been at the forefront of providing thoughtful innovation to its asset allocation products by offering new funds, expanding global access and adjusting portfolio allocations when we believe it is appropriate to do so,” said Tim Noonan, managing director for capital markets insights for Russell’s private client services business. “The inclusion of the Russell Commodity Strategies Fund is the latest statement of our belief that investment risk can be best managed by diversifying across asset classes, across investment styles and across investment managers.”

The new commodities strategy fund will invest in commodities-linked securities, derivative instruments, cash and fixed income securities that together are intended to provide clients with exposure to the performance of the collateralized commodity futures markets. In addition, the fund will invest in a wholly-owned offshore subsidiary that will invest in commodity-linked swaps and other investments in which the fund cannot directly invest for tax reasons.

“Much of the money following commodities is invested systematically through passive vehicles,” said Ind. “This leaves good opportunities for commodity managers to identify and potentially take advantage of market inefficiencies and active trading opportunities. We have designed this fund to use several approaches which together seek out distinct opportunities for performance while maintaining a strong risk management profile.”

Additional information about the Russell Commodity Strategies Fund is available at: www.russell.com/us/Investment_Products/Russell_Funds/Commodity_Strategies_overview.asp.

About Russell Investments

Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 40 countries. Over the course of its history, Russell’s innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership. The firm has $179 billion in assets under management (as of 3/31/10). For more information about how Russell helps to improve financial security for people, visit us at www.russell.com.

Russell Investment Group, a Washington, USA corporation, operates through subsidiaries worldwide including Russell Investments. Russell Investments is a subsidiary of The Northwestern Mutual Life Insurance Company. Russell Investments is the owner of the trademarks, service marks and copyrights related to its indexes.

Fund objectives, risks, charges and expenses should be carefully considered before investing. A prospectus containing this and other important information can be obtained by calling 800-787-7354 or by visiting www.russell.com. Please read the prospectus carefully before investing.

Exposure to the commodities markets may subject the fund to greater volatility than investments in traditional securities, particularly if the investments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or sectors affecting a particular industry or commodity and international economic, political and regulatory developments. The use of leveraged commodity-linked derivatives creates an opportunity for increased return, but also creates the possibility for a greater loss.

Mutual fund investing involves risk, principal loss is possible.

The fund invests directly, or indirectly through a wholly-owned subsidiary, in commodity-linked securities that provide exposure to the performance of the collateralized commodity futures market, and in other debt instruments. The Fund may also make investments in derivative instruments, including options, futures, swaps, structured securities and other derivative instruments. Use of derivative instruments may involve certain costs and risks such as liquidity risk, market risk, credit risk and default risk.

The fund may also invest in foreign securities, which may be more volatile than investments in U.S. securities and will be subject to fluctuation and sudden economic and political developments. The fund may also invest in non-investment grade fixed-income securities, which involve higher volatility and higher risk of default than investment grade bonds.

The fund is classified as a "non-diversified fund" under the 1940 Act which means that a relatively high percentage of the fund's assets may be invested in a limited number of issuers. Thus, the fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio, and may be more susceptible to greater losses because of these developments.

Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

Securities products and services offered through Russell Financial Services, Inc., member FINRA, part of Russell Investments.

Russell Investments
Steve Claiborne, 253-439-1858
[email protected]
Matt Burkhard, 718-875-2122
[email protected]

Source: Russell Investments