Russell Investments says it has introduced a new mutual fund that aims to deliver portfolio diversification and exposure to the long-term performance of global commodity markets.
The new fund, the Russell Commodity Strategies Fund (RCSAX) is a multi-manager mutual fund with a specific commodities mandate.
“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, in a statement.
Russell has added the new commodity fund to its asset-allocation strategies and has also made it available as a standalone fund for advisors who wish to provide clients with exposure to energy, industrial metals, livestock, precious metals, grains and softs.
“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,” explained Tim Noonan, managing director for capital markets insights for Russell’s private client services business, in a press release.
According to Russell, 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.