Institutional investors

Real estate Increased complexity requires expertise 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 Russell has been repeatedly recognized as a leader in manager due diligence. 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? Diversification 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. Return potential 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. Related information Consulting 2010-2011 Russell Survey on Alternative Investing "Structuring a private real estate portfolio" by Leola Ross and John Mancuso "Opportunistic private real estate: Capitalizing on cyclical recovery" by Ed Garcia "Global private real estate: Return from Atacama" by John Mancuso We would welcome the opportunity to listen, learn about your objectives and discuss how the considerable resources at Russell can help your fund meet its goals.       West Coast David Rothenberg Managing Director 866-926-5934 Midwest Julia Cormier Director 312-780-7122 East Coast Gerry Lillis Director 866-459-4128 Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. 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. USI-9960-06-12