Increasing demand for income-seeking strategies has led Russell Investments to launch two income-based multi-manager funds.
The Russell Australian Shares Enhanced Income Fund (RASEIF) tapped into the strong forecast dividend growth in Australian shares, while the Russell Australian Bond Income Fund (RABIF) allowed investors to take advantage of the attractive yields on local bonds, Russell stated.
“Companies are starting to restore dividend payments as balance sheets strengthen, and bond yields are now at relatively high levels,” said Russell Investments portfolio manager Kathy Cave. “Launching these funds was a logical step given the current market environment and the increasing desire for income from investors.”
Cave said that Russell expected a more supportive environment for corporate dividends as companies restored their balance sheets and sought to return cash to shareholders. Russell asserted that the local bond market was looking “particularly attractive” as Australian bond yields were higher than most in the developed world and issuers were generally of high quality.
