Russell Investment Group

For more than three decades, Russell has applied its world-renowned investment knowledge in evolving partnerships with some of the world's most sophisticated investors, including pension funds, endowments and foundations, and high net worth individuals. What makes Russell different from other investment services firms? Our clients tell us they value the dedication of our client service teams to developing and delivering investment solutions that genuinely meet their needs. We believe that this stems from our consulting origins — which remain intact — and the insights we have developed as a result. Our goal is to deliver value-added outcomes to our clients based on intellectual rigor as well as an appreciation of the challenges of the real world. We believe this is why we are the world's largest asset consultant, helping to direct the investments of nearly $3 trillion.

Manager Research

Russell is most easily defined as a manager of managers. This is equally true whether the service is pure consulting or investment management. Russell's approach gives investment programs of all types and sizes access to the same strategies used by the largest, most sophisticated pension funds. We implement manager selection and diversification structures similar to those recommended to our consulting clients. Today, $167 billion is invested in Russell funds worldwide — more than half by institutions. The success of these funds can be explained by the soundness of the fundamental concept and the consistency we've shown in expanding our portfolio management and research teams. Our manager research efforts remain by far the largest and most intensive in the industry. Russell holds the largest market share of the global managers of managers market (51.5% in Canada) according to the 2005 Cerulli Report™.

Alternative Investing

Russell's long-term experience and success in multi-manager investing has allowed us to develop unparalleled expertise in the creation and management of global funds of funds. This coupled with the recent acquisition of Pantheon Ventures, a dedicated private equity specialist firm since 1982, gives investors access to one of the most versatile private equity platforms in the industry. Its deal flow encompasses most of the universe of global private equity offerings ensuring that it is not selecting from a sub-optimal subset of the market. Russell currently manages more than $24 billion in alternative investment solutions that include private equity and hedge funds.

Implementation Services

Russell's Implementation Services helps our clients effectively implement their fund's investment policy. We customize a solution that will help improve a fund's performance, while simultaneously reducing exposure to unintended risk. Our experienced team works on your behalf to minimize performance drag and administrative workload.

Policy Implementation - The growth in market volatility has driven the need for improved rebalancing disciplines. Implementation "slippage" has caused performance surprises and introduced unintended risks into the profile of institutional pools of capital. For years, Russell has pioneered techniques for policy implementation that reduce the tracking error to policy while improving investment performance of the fund. Today the collective integration of cash equitization, rebalancing and liquidity management allow our clients to better capitalize and realize their investment committees' strategic policies. These techniques are considered to be the best practices of the industry. They are becoming tomorrow's standards.
Transition Management - This strategic solution manages risk and performance when restructuring portfolios or asset classes. Russell has developed and implemented superior risk management transition techniques for more than two decades. In 2003, we completed 530 transition events worldwide for over $US185 billion in assets and in 2004 we transitioned over $ US 220 billion in assets.
Commission Recapture - Russell is the world's leading provider of commission recapture services. We deliver brokerage solutions to nearly 400 funds around the globe, which collectively control US$3.7 trillion in assets. Our success is driven by our philosophy that execution quality is paramount. We accomplish this by providing your investment managers with access to global brokers with whom they already do considerable business, thus ensuring seamless execution. Nearly 500 investment managers direct trades to Russell's network of 20 broker partners in 44 countries. In 2004, our clients realized nearly $US150 million in savings.