Russell Tops US$100 Billion in Assets Under Management (Russell.com)

Russell Tops US$100 Billion in Assets Under Management
More Investors Seek Multi-Manager Solutions

AUCKLAND, 24 February 2004 — With its multi-manager investment strategy taking hold in markets around the world, Russell Investment Group today surpassed a milestone of US$100 billion in assets under management (AUM). Russell assets have grown 41% since the beginning of 2003, due to both the improving U.S. equity market and a strong flow of new clients in all of the company's major service markets. In 2003 Russell brought in record sales of more than US$12 billion from institutional clients worldwide.

"We are in the midst of a major move toward disciplined, diversified management of investment assets and toward organisations that are trusted by their clients and partners. As a result, a record number of individuals and institutions are choosing Russell's multi-manager investing," said Craig Ueland, Russell president and CEO. "In 2003, we set records for the number of new clients in the UK/Europe, Japan, Australia and North America. As a world leader in the multi-manager arena, Russell is well positioned to continue its remarkable growth rate."

Russell, which opened its first multi-manager funds in 1980, reached its first billion in 1982 and US$10 billion under management by 1991. Russell funds experienced steady growth in each subsequent year though the largest gain by far occurred in 2003 as assets jumped from US$67 billion to US$95 billion.

Today's announcement does not include assets under management from the pending acquisition of Pantheon, the global private equity fund-of-funds specialist. Completion of the acquisition agreement with Pantheon, which is expected in the next few weeks, will add about US$7 billion to Russell's total assets.

The US$100 billion milestone reinforces that, according to a 2003 Cerulli Associates' report, Russell remains the global market leader among "manager-of-managers" investment firms. The Cerulli Report™ shows Russell holds a 26% share of the US$227 billion global manager-of-managers market, including 33% of non-U.S. manager-of-managers assets. The report is based on manager-of-managers assets under management as of December 31, 2002. (Cerulli defines manager-of-managers assets as "assets managed as segregated accounts by multiple subadvisors.")

Russell also just received, for the second consecutive year, the "Multi-manager of the Year" award as part of Global Investor magazine's annual review of the industry.

Ueland said 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 as well as a business proposition that allows our clients and partners to focus on their core competencies while delegating the highly specialised 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 organisations in major markets around the world. Besides expanding globally, Russell also has broadened its original focus on corporate pension plans to include service to endowments and foundations, investment advisors, banks, brokers and other service organisations. Russell currently employs 1,300 associates globally, and Ueland reports that steady growth will drive the company to hire about 100 additional people in a variety of investment management, service and sales roles during 2004.

About Russell
Russell Investment Group, a global leader in multi-manager investing, provides investment products and services in more than 35 countries. Russell manages more than US$100 billion in assets and advises clients worldwide representing more than US$1.8 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Washington USA, with additional offices in New York, Toronto, London, Paris, Sydney, Singapore, Auckland and Tokyo.

The information contained in this publication was prepared by Russell Investment Group Ltd (formerly Frank Russell Company (N.Z.) Limited) on the basis of information available at the time of preparation. This publication provides general information only and should not be relied upon in making an investment decision. Investors should seek professional advice which takes into account their personal circumstances before making an investment decision. Accordingly, Russell Investment Group Ltd, Russell Investment Management Ltd and their directors will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this publication. Russell Investment Group Ltd, Russell Investment Management Ltd, any member of the Russell Group or their directors do not guarantee the investment or the returns on the investments in the Russell Funds Investment Programme.

The investment statement for the Russell Funds is available by contacting Russell Investment Group Ltd on 09 357 6633. Copyright © 2003 Russell Investent Group Ltd. All rights reserved.