Updated Industry Report Ranks Russell As World's Largest Manager-of-Managers (Russell.com)

Updated Industry Report Ranks Russell As World's Largest Manager-of-Managers
Manager-of-Managers Assets Surge 25% Globally

TACOMA, Wash. — September 14, 2004 — Russell remains the global market leader among manager-of-managers investment firms, according to Cerulli Associates' new report, The Cerulli Quantitative Update: Global Multimanager¹ Products 2004. The report shows Russell holding a 22.4% share of the growing $335 billion global manager-of-managers market, including 18% of U.S. manager-of-managers assets. The Cerulli Report™ is based on total assets under management as of Dec. 31, 2003.

The Cerulli Report™ states that "Russell maintains its position as the world's largest multimanager by any measure. During 2003, the firm continued its global expansion using its traditional modus operandi: securing a key distribution relationship in a target country, then using that as a platform for generating additional business."

The report also shows that multimanager asset management products worldwide held nearly US$680 billion at year-end 2003, increasing 28% from year-end 2002.

The Cerulli Report™ also projects that global multimanager products will continue expanding 14% compounded annually through 2008 — matching the growth rate posted for the past four years, exceeding US$1 trillion by 2006 and surpassing US$1.3 trillion in 2008. Cerulli Associates says this projection accelerated significantly from last year, when it projected a 10.4% compounded annual growth rate through 2007, but the change resulted from better asset returns from stock markets worldwide as well as dramatic growth in the sizable U.S. market segment.

The report points out that multimanager products recorded more than US$66 billion of net new business during 2003, a record amount.
For its part, Russell continues to set records for assets under management, which have more than doubled in the last five years from $45.6 billion at the end of 1998 to $110 billion at present. Russell, which opened its first multi-manager funds in 1980, reached US$1 billion in 1982 and US$10 billion under management by 1991.

Russell President and CEO Craig Ueland said, "Investors worldwide are concerned about maintaining the highest fiduciary standards while focusing on their need for disciplined and value-added investment solutions. This combined need for disciplined advice and objective research has led to record demand for Russell's multi-manager investment services globally."

Ueland added that Russell'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. In addition to expanding globally, Russell has broadened its original focus on corporate pension plans to include service to endowments and foundations, investment advisors, banks, brokers and other service organizations.

Contact: Steve Claiborne, 253-594-1858

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."

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. RC 4049