< Back Printer friendly
Russell pioneers multi-manager frontier market investing
Frontier markets share similarities to emerging markets of the 1980s and 1990s

Tacoma, WA — June 22, 2009 — Russell Investments announced the launch of one of the first multi-manager institutional funds with a specific frontier markets investment mandate. The Russell Frontier Markets Equity Fund will invest primarily in countries that are not generally considered part of developed markets or the core emerging markets but that have demonstrated an openness and accessibility to foreign investors. The fund will have some flexibility to invest in companies that are listed in more developed markets but have a significant proportion of operations in frontier markets. The fund is a bank-maintained collective investment fund maintained by Russell Trust Company. The fund is only available to certain qualified employee benefit plans and governments plans, and is not offered to the general public.

Frontier markets have an untapped economic potential that may be compelling as a long-term investment strategy. "The frontier markets provide a fresh set of options for investors looking to find new companies that are not widely researched," said Scott Crawshaw, portfolio manager, Russell Investments. "The frontier markets offer return potential for patient investors, but there are liquidity and trading issues that need to be recognized and understood. Because so few managers specialize in these investments, finding talented managers with sufficient capacity will require experienced and dedicated manager research analysts."

Geographic regions represented in the frontier markets may include, but are not limited to Africa (Kenya, Nigeria and Zambia), the Caribbean (Jamaica and Tobago and Trinidad), Eastern Europe (Croatia, Romania and Slovenia), Asia (Bangladesh, Sri Lanka and Vietnam) and the Middle East (Jordan, Lebanon and Qatar). Frontier markets include a large number of companies that have smaller market capitalizations, which will be of particular interest to those investors who have observed an increase in the average market capitalization of their emerging markets exposure as these markets have developed.

"The frontier markets look similar in many ways to the emerging markets of the 1980s and 1990s," explained Russell's Director of Global Equity Ron Dugan. "As more investors look for new sources of return, the frontier markets will open new avenues in the global world of investing. Russell is delighted to be offering our institutional clients this innovative and global investment solution."

About Russell
Russell Investments is a global investment company with $136 billion in assets under management as of March 31, 2009. Russell serves individual, institutional and advisor clients in more than 40 countries and provides investment solutions including mutual funds, retirement investments, institutional asset management, implementation services and global stock market indexes. Russell is world-renowned for its depth of manager research, quality of manager selection and access to some of the world's leading investment managers. It helps investors of all sizes put this access to work in corporate defined benefit and defined contribution plans, and in the life savings of individual investors.

Founded in 1936, Russell is a subsidiary of Northwestern Mutual Life Insurance Company. Headquartered in Tacoma, Russell operates principal offices in Amsterdam, Auckland, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Seoul, Singapore, Sydney, Tokyo and Toronto.

Contact:
Kate Stouffer: 253-439-2562
Matt Burkhard: 718-875-2122




This is a collective investment fund of the Russell Trust Company's Commingled Employee Benefit Funds Trust Russell Frontier Markets Equity Fund. This fund is available to certain tax-qualified retirement plans only and is distributed by Russell Trust Company. Russell Trust Company acts as trustee and manager of the fund. The fund is not a mutual fund, and its units are not registered under the Securities Act of 1933 or applicable securities laws of any state or other jurisdiction. The fund is not registered under Investment Company Act of 1940 or other applicable law, and unit holders are not entitled to the protections of the 1940 Act. The fund is not insured by Russell Trust Company, any of its affiliates, the FDIC or any other person. As defined in the fund's declaration of trust and participation agreement documents, the fund is available for investment by eligible, tax-qualified retirement plan trusts only. The unit value of the fund will fluctuate, and investors may lose money.

There are risks involved with investing, including possible loss of principal. Investments 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.

This is a new fund and has no long-term performance history.

Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. You may not rely upon this publication in evaluating the merits of investing in the fund.

Russell Investment Group, a Washington USA corporation, operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

USI-4086
Client log in

FINANCIAL PROFESSIONALS

We’re here to help you deliver value to your clients with tools and resources for our network of financial professionals.

Log in to RussellLINK

INSTITUTIONAL INVESTORS

Decades of institutional leadership drive every custom client solution we deliver.

Log in to ClientLINK

RUSSELL INDEXES

Our leading family of indexes represent over 98% of the investable universe worldwide.

Log in to Russell Indexes Online