Global asset manager seeks fundamental changes

Global asset manager seeks fundamental changes

Global asset manager seeks fundamental changes One of Canada’s largest providers of multi-asset solutions announces proposed changes to a couple of its funds that will greatly alter current mandate.
 
Russell Investments, whose assets under management top $307 billion, today issued a press release stating, “[Russell] is seeking to approve a change to allow each of the funds to provide long-term capital appreciation principally through exposure to both global and Canadian equity securities of issuers with a smaller market capitalization.”
 
What does this mean for advisors?
 
Well, if you or your clients invest in either the Russell Smaller Companies Pool or the Russell Smaller Companies Class, which invests in the Russell Smaller Companies Pool, the names are going to change as are the investment objectives.
 
Russell want to add the word “Global” to the mix. In late June investors will be asked to approve the change to Russell Global Smaller Companies Pool and Russell Global Smaller Companies Class.
 
More importantly, it seeks to widen its net in the search for the best smaller companies to invest in. Currently, the fund’s prospectus allows for it to invest in foreign equity securities up to 49 percent of the portfolio’s net assets.
 
While Russell did not mention specifics in its press release, it’s clear that the new mandate goes well beyond 49 percent making it truly a global fund. As part of this mandate it’s quite possible that the current sub-advisors, 1832 Asset Management and Hillsdale Investment Management, could be replaced or joined by additional investment managers.
 
News like this suggests investment management continues to be less about Canada and more about the world.