This fund focuses on quantitative analysis of the U.S. equities market. Each manager Russell selects uses a different quantitative approach to determine a stock's relative attractiveness. We analyze the various quantitative approaches and select managers whose styles are intended to be complementary.
For example, one manager may select stocks by building models that look for undervalued large-cap securities that appear ready to rise in value. Another may have a more complex model, ranking stocks based on many factors and then building a portfolio of the top-ranked opportunities. In addition, the managers in the fund may use limited long/short strategies whereby Russell allows them to short a portion of their stock holdings they find unattractive and then use those proceeds to purchase different stocks they rank as attractive. This illustrates how we blend together complementary styles and assignments to take advantage of a manager's unique strengths. – Dennis Jensen, CFA
Allocation of fund assets As of 09/10/2009
% Allocated
Year assigned
Portfolio manager
Market-oriented
Aronson+Johnson+Ortiz, L.P.
19%
2003
Kevin Johnson, Ted Aronson, Martha Ortiz
Goldman Sachs Asset Management, L.P.
17%
2004
Andrew Alford, Kent Daniel, Katinka Domotorffy, Bob Jones
INTECH Investment Management, LLC
17%
2008
Robert Fernholz
Jacobs Levy Equity Management, Inc.
19%
1999
Bruce Jacobs, Ken Levy
Numeric Investors, LLC
18%
2009
Arup Datta
Russell Investment Management Company*
10%
2005
Brian Mock
Managing money differently The Russell approach has been trusted for decades by many of the world's largest investors; our mutual funds allow you to employ that same approach. We identify investment managers we believe have exceptional capabilities, blend them to help manage risk through diversification, and constantly monitor them. Regardless of market conditions, Russell's investment approach remains constant.
*The fund's adviser, Russell Investment Management Company (RIMCo), may employ a proprietary "select holdings" strategy in which it exercises investment discretion for a portion of the fund's assets it determines not to allocate to the money managers. The strategy is designed to increase the fund's exposure to stocks that are viewed as attractive by multiple money managers. The use of the select holdings strategy will amplify the fund's security risk and potential underperformance. In addition to managing this strategy, RIMCo performs other investment advisory functions for the funds.
Money managers listed are current as of 09/30/2009. Subject to the fund's board approval, Russell has the right to engage or terminate a money manager at any time and without a shareholder vote, based on an exemptive order from the Securities and Exchange Commission.
Fund objectives, risks, charges and expenses should be carefully considered before investing. For a prospectus containing this and other important information call Russell at 1-866-676-7680 or go to the prospectus and reports page to download one. Please read the prospectus carefully before investing.
On September 2, 2008, the name of the Equity Q Fund changed to Russell U.S. Quantitative Equity Fund.
Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.
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This fund focuses on quantitative analysis of the U.S. equities market. Each manager Russell selects uses a different quantitative approach to determine a stock's relative attractiveness. We analyze the various quantitative approaches and select managers whose styles are intended to be complementary.
