Russell Investments has launched the Russell Strategic Call Overwriting Fund in response to interest from financial advisers in Russell’s proprietary call overwriting strategy.
The new fund provides advisers and their clients with access to the first non-cash retail fund managed directly by Russell’s portfolio managers without underlying managers.
The fund aims to provide total returns with lower volatility than US equity markets, seeking gains from writing call options and from its equity portfolio and seeking income from dividends on stocks held.
“In our conversations with advisers, we have consistently heard that they are looking to provide clients with a call overwriting strategy to support long-term wealth creation while managing overall portfolio volatility,” says Phill Rogerson, managing director of consulting and product development for Russell’s US adviser-sold business. “Interest has only increased in the current volatile market environment and we are pleased to be able to activate Russell’s proprietary research in a mutual fund format that provides advisers and their clients with a key tool to employ this investment approach.”
The launch of the Russell Strategic Call Overwriting Fund follows several enhancements to Russell’s multi-asset portfolios and retail product offerings, including the launch of the Russell Multi-Strategy Alternative Fund and Russell US Strategic Equity Fund as well portfolio reallocations and fund strategy changes to incorporate insights based on the Russell Stability Indexes style-based benchmarks.