Russell Gains U.S. Institutional Clients at Record Pace as Multi-Manager Investing Gains Ground in 2003
33 New Clients: Half are Endowments & Foundations
TACOMA, Wash. — August 12, 2003 — With 33 new investment management assignments from U.S. institutional clients in the first seven months of 2003, Russell is extending its leadership in multi-manager investing and is on track for a record year for both new-client sales and assets under management.
Through the end of July, Russell has attracted $4.5 billion in assets to manage from new U.S. institutional clients in 2003, which already exceeds the new business generated during the full calendar year of 2002 in terms of both number of new clients and assets. The 33 new U.S. institutional investment assignments earned in the first seven months of 2003 already sets the record for a calendar year. The $4.5 billion in assets sold so far in 2003 is approaching the full-year record of $5 billion set in 2001.
When sales in 2003 to existing clients are added to the total, the year-to-date sales figure exceeds $5 billion.
Russell executives attribute this record success to two key market factors: growing acceptance of the multi-manager investment discipline as well as institutional investors' keen interest in a strong fiduciary process for overseeing investment assets. A three-year bear market and a regulatory and legal spotlight on corporate responsibilities are fueling this trend.
"There's a growing thirst for Russell's objective and diversified multi-manager investment process," said Russell President Craig Ueland, who has been named to become the company's next CEO in January. "Institutional investors are recognizing the need for a disciplined and value added investment process that meets the highest fiduciary standards."
Another factor in Russell's business growth is the company's increased focus on endowments and foundations, a segment of the U.S. institutional market that accounts for half of the firm's new clients this year.
"From small endowments to large corporations, more investment committees and CFOs are looking for stability after several years of turbulent markets," said Ueland.
Worldwide, Russell has attracted new sales representing more than $10 billion in assets during 2003. More than 85% of this year's sales are with U.S. and European clients, while the remaining assets come from clients in Australasia, Canada and Japan.
"We're seeing accelerating acceptance of our disciplined multi-manager investment process across many cultures and markets, with particularly strong growth in the United States, Australia, and the United Kingdom," said Ueland. "Russell's three decades of commitment and experience to these principles is resonating with investors around the world, many of whom have been stung by the weak markets of the past three years."
A recent report by Cerulli Associates shows the multi-manager option is the fastest growing segment in the investment industry worldwide. The report shows multi-manager assets have nearly doubled since 1997, and Russell leads the industry in manager-of-managers assets with a 26% share.
Russell, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages more than $76 billion in assets and advises clients worldwide representing more than 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.
Contact: Steve Claiborne, 253-594-1858
Frank Russell Company, a Washington, USA corporation, operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
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