Russell plans Multi-Strategy Alternative Fund, with Babbit as manager

By Toni Weeks

San Diego, March 15 - Russell Investment Co. announced in an N-1A filing with the Securities and Exchange Commission that it is planning a new fund that will utilize a multi-manager approach.

The Russell Multi-Strategy Alternative Fund will offer class A, class C, class E, class S and class Y share classes. Ticker symbols have not yet been determined.

The fund will seek long-term capital growth with low correlation to, and lower volatility than, global equity markets. Portions of the fund's assets will be allocated to different money managers that employ a diverse range of alternative investment strategies, including relative value, event driven, equity hedge and tactical trading strategies. The money managers have not yet been announced.

Lance Babbit, a senior portfolio manager for Russell Investment Management Co., the fund's Seattle-based investment adviser, will be the portfolio manager. Prior to joining Russell, Babbit was a senior portfolio manager at Credit Suisse Group from 2007 to 2011 and a senior portfolio manager at Focus Investments from 2005 to 2007.

Class A shares will be subject to a 5.75% maximum sales charge and a 1% deferred sales charge. Class C, E, S and Y shares will have no shareholder fees.

Advisory fees will run 1.5% for the five share classes. Including distribution and acquired fund fees and other miscellaneous expenses, the total annual fund operating expenses are expected to be 2.5% for class A and class E, 3.25% for class C, 2.25% for class S and 2.07% for class Y shares.

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