Russell Hires Ark Asset Management for Growth Assignments in 13 Funds (Russell.com)

Russell Hires Ark Asset Management For Growth Assignments in 13 Funds

TACOMA, Wash. — Russell has selected Ark Asset Management Co., Inc., to manage 13 large-cap growth assignments in its worldwide funds complex, which includes seven funds in the United States, one in Australia, one in Japan, two in Canada and two in the United Kingdom. The assignments were made as part of Russell's multi-manager process, which seeks to emphasize stock selection skill while providing broad diversification in each of its more than 160 funds.

These new assignments, which total $1.2 billion, are the first for Ark Asset Management in Russell's complex.

"Ark uses a creative, research-intensive approach to identify growth companies likely to exceed the expectations of Wall Street analysts," said Dennis Trittin, portfolio manager. "We believe Ark's investing approach complements the other managers in each fund and as a result provides these funds with meaningful diversification."

The assignment of assets to Ark is, in part, the result of Russell's decision to replace Strong Capital Management.

"As part of our ongoing manager evaluation process, we began considering a change in our Strong assignment based on our own portfolio management issues and prior to any specific regulatory or investigative issues," said Randy Lert, chief investment officer. "Our initial evaluation began as a routine Russell shift in manager selection within our fund complex, but eventually we also had to consider issues of organizational stability resulting from legal and regulatory investigations."

Russell monitors and continuously researches 3,500 outside investment manager teams globally as part of its multi-manager investment process. Of these, about 120 managers are selected for specific assignments within Russell's multi-manager funds. Russell blends these fund assignments to create diversified portfolios of managers, investment styles and assets designed to manage risk.

"Our decision to replace any manager is based on our assessment of their strategy and potential to add value to a particular fund," said Lert.

Russell Investment Group, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages more than $85 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.

Note: Fund objectives, risks, charges and expenses should be carefully considered before investing. A prospectus containing this and other important information can be obtained by calling 800-787-7354 or by visiting www.russell.com. Please read the prospectus carefully before investing.

Russell Investment Group is a registered trade name of Frank Russell Company, a Washington, USA corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.

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

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

Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently over the long term. Such investments may provide minimal dividends which could otherwise cushion stock prices in a market decline. Stock value may rise and fall significantly base, in part, on investors' perceptions of the company, rather than on fundamental analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments.

Large capitalization (large cap) investments involve stocks of companies generally having a market capitalization between $10 billion and $200 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions.

Non-U.S. markets entail different risks than those typically associated with U.S. markets, including currency fluctuations, political and economic instability, accounting changes, and foreign taxation. Securities may be less liquid and more volatile. If applicable, please see a Prospectus for further detail.

Russell has the right to employ or terminate a money manager at any time and without prior notification, as is consistent with its role as investment manager of its mutual funds.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

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RC Code #3548