Russell Investments Tax-Exempt High Yield Bond Fund Class S (RTHSX)

Overview

The company specializes in fixed-income investment products that are designed to provide investors with federal tax-exempt income. By investing primarily in municipal debt obligations, the fund aims to cater to investors looking for tax-efficient income sources. Its investment strategy emphasizes assets whose returns are not subject to federal income tax, an approach that is appealing to those in higher tax brackets or individuals seeking to minimize their overall tax burden. The company's portfolio management deliberately allocates a significant portion of its investments to these tax-exempt assets, showcasing a focused commitment to delivering value through tax optimization.

Products and Services

• Municipal Debt Obligations with Federal Tax-Exempt Income

  The company predominantly invests in municipal debt obligations that offer federal tax-exempt interest income. These securities are issued by local or state governments and are often used to finance public projects such as schools, highways, and infrastructure developments. This product is designed for investors seeking steady, tax-free income, making it an attractive option for those in higher tax brackets or individuals looking for efficient tax-saving investment solutions.

• Municipal Debt Securities Subject to Federal Income Tax

  Up to 20% of the company's assets plus borrowing for investment purposes may be allocated to municipal debt securities, the income from which may be subject to federal income tax, including the alternative minimum tax. This component of the portfolio allows for diversification into investments that, while not offering the same tax-exempt income as the fund's primary focus, may provide other financial benefits or fit different strategic objectives. This option broadens the fund's appeal to a wider audience of investors, including those who may be seeking a mix of tax-advantaged and taxable returns.