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Russell Named Largest Manager-of-Managers in New Report by Cerulli Associates
Russell Increases Global Market Share from 23% to 26% in 2002

TACOMA, Wash. — June 5, 2003 — Frank Russell Company remains the global market leader among manager-of-managers investment firms, according to Cerulli Associates' new report, The Global Multimanager¹ and Mutual Fund Subadvisory Markets 2003. The report shows Russell holding a 26% share of the $227 billion global manager-of-managers market, including 33% of non-U.S. manager-of-managers assets. The Cerulli Report™ is based on total assets under management as of Dec. 31, 2002.

The Cerulli Report™ states that "the global multimanager marketplace lost 7.6% in total assets during 2002, but continues to fare better than the industry as a whole." In addition, it says that multi-manager assets under management globally totaled US$463 billion at year-end 2002 and have a three-year compound annual growth rate (CAGR) of roughly 8% since year-end 1999.

The Cerulli Report™ goes on to say that "Global multimanager products will continue to display strong growth, and are likely to hold $770 billion by year-end 2007, growing at an estimated 10.4% per year." Cerulli Associates anticipates a slow and steady recovery in the global equity markets in the years to come. The researchers also foresee steady growth in all aspects of multi-managing, such as institutional and retail manager-of-managers funds.

Russell's assets under management have grown nearly 50% in the last four years, from $45.6 billion at the end of 1998 to $67 billion as of December 2002.

Craig Ueland, Russell's Chief Operating Officer, said the firm's ongoing success in the multi-manager space is due to three important differentiators. "Russell has the largest and most experienced group of manager researchers in the world," he said. "We also have a proven investment track record and a business proposition that allows our clients and partners to focus on their core competencies while delegating the highly specialized task of researching and selecting managers to Russell experts."

In recent years, Russell has expanded its global array of multi-manager investment programs by developing business alliances with leading financial services organizations in major markets around the world. Besides expanding globally, Russell also has broadened its original focus on corporate pension plans to include service to endowments and foundations, investment advisors, banks, brokers and other service organizations.

Russell, global leaders in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages $76 billion in assets and advises clients worldwide representing US$1.6 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo.

¹ Cerulli considers the term "multimanager" to include assets of both manager-of-managers products and fund-of-funds. Cerulli defines manager-of-managers assets as "assets managed as segregated accounts by multiple subadvisors." Fund-of-funds are defined as "collective investment funds investing in units of other collective investment funds."

Frank Russell Company, a Washington, USA corporation, operates through subsidiaries worldwide.

Russell Fund Distributors, Inc. is the distributor of Frank Russell Investment Company.

Diversification does not ensure a profit or guarantee against loss in declining markets.

For complete information about Frank Russell Investment Company, including charges and expenses, you may obtain a Prospectus by calling 1-800-832-6688. The Prospectus should be read carefully before an investment is made.

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