A pioneer in real estate as an institutional asset class
Created first industry benchmark, Russell Property Index (now NCREIF Property Index)
Launched our first private real estate fund of funds
Launched US public REIT multi-manager fund
Among the earliest to begin researching opportunistic real estate
Advised major US public plan on industry-leading global expansion of opportunistic portfolio
Awarded initial discretionary private mandate
2004 - 2006
Launched global REIT mandates
2005 - 2006
Expanded real estate staff coverage to London and Sydney
Launched global private opportunistic fund of funds
Real estate AUM of $7.8 billion (6/30/2011)
Why choose Russell for your real estate investment needs?
Flexible investment options
We can provide you with investment products designed to fit your fund's diversification objectives and liquidity needs. For example, you can choose between our public or private real estate funds.
Global experience in research and investment management
We have been researching real estate managers for over 30 years and have offered multi-manager funds for over 25 years. Our real estate team is located in six different offices around the world and our analysis covers market trends, investment strategies, and public and private investment products.
Recognized manager due diligence
For a fourth year in a row, Russell was voted among the top in manager due diligence by participants in a 2012 FundFire survey of institutional sales professionals.¹
Access to real estate investment opportunities
We regularly research the global universe of real estate products and can offer investors access to diverse investment opportunities.
Why invest in real estate?
Historically, real estate investments have had a low performance correlation with stocks and bonds. Because returns are driven by different factors than other asset classes, investing in real estate can also help investors diversify the risks in their portfolios.
Over its history, real estate has provided investors with competitive returns relative to other asset classes. For example, in the 10 years ending June 30, 2011, the public real estate securities market returned 10.68%, compared to 3.21% from U.S. stocks and 5.74% from U.S. bonds.
Real estate represented by the FTSE NAREIT Equity REITS Index, U.S. equity markets represented by the Russell 1000® Index and U.S. bonds represented by the Barclays Capital U.S. Aggregate Bond Index.
Lower volatility than other asset classes
From an investment perspective, the leasing and financing structures found in real estate investments are long term in nature and have historically contributed to relatively stable cash yields.
Additionally, private real estate returns are largely dependent on periodic asset valuations and therefore do not exhibit the same level of volatility as returns from investments listed on exchanges.
¹ Source: "Inst'l Sales Execs Praise Mercer, Russell, Callan", FundFire Survey for Institutional Sales Execs, February 2012.
Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group.
Past performance is not a guarantee of future results.
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.
Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.
Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes and tax laws and interest rates all present potential risks to real estate investments.