Products

Russell Launches Target Distribution Funds

Russell Investments has launched a series of new multimanager funds, designed specifically for the “decumulation″ phase of retirement saving and seeking to provide a steady, but not guaranteed, annual distribution.
Reported by Rebecca Moore

Russell LifePoints Funds, Target Distribution Strategies leverage a unique, dynamic asset allocation strategy designed to provide retirees with an ongoing, reliable way to replace pre-retirement income; for certain funds, the potential to preserve some savings; and the flexibility to make changes throughout retirement, according to the product announcement.

The offering includes:

  • 2017 Retirement Distribution Funds: Seek to provide a stated annual target distribution for 10 years from inception. As a secondary objective, the funds seek preservation of a portion of the capital initially invested. Initial Annual Target Distribution: 70 cents per share per year payable annually.
  • 2017 Accelerated Distribution Funds: Seek to provide a stated annual target distribution for 10 years from inception. Initial Annual Target Distribution: $1.00 per share per year payable annually.
  • 2027 Extended Distribution Funds: Seek to provide a stated annual target distribution for 20 years from inception. As a secondary objective, the funds seek preservation of a portion of the capital initially invested. Initial Annual Target Distribution: 60 cents per share per year payable annually.

“The Target Distribution Strategies represent a whole new approach to mutual fund investing – one that can help individuals navigate the range of competing emotional and financial issues that they face as they move through retirement,” said Timothy Noonan, managing director, Russell Investments, in the announcement.

More information about the funds can be obtained at www.russell.com or by calling 800-787-7354.