Russell Investments

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Russell Investments
Type Subsidiary
Industry Financial Services
Founded 1936
Headquarters Seattle, Washington, United States
Key people Len Brennan, President & CEO
AUM $279.7 billion as of 06/30/14
Employees 1900[1]
Parent Northwestern Mutual
Website www.russell.com
Russell Investments former headquarters in downtown Tacoma, WA, with Mt. Rainier in the background.

Russell Investments is a subsidiary of Northwestern Mutual headquartered in Seattle, Washington, U.S.A. The company is a global asset management firm, founded in 1936. Russell Investments is the creator of the Russell Indexes. It also provides investment consulting and other financial services to institutional investors and to individuals through a network of partners. London Stock Exchange Group said that they are going to buy Frank Russell Co.[2]

History[edit]

  • 1936 — Local businessman Frank Russell starts a small brokerage firm in Tacoma, Washington.
  • 1958 — George Russell joins his grandfather's firm, Frank Russell Company. Six months later, George becomes chairman, president and CEO when his grandfather dies. The company has two employees — George and an assistant.
  • 1969 — George pioneers a new industry — strategic pension fund consulting — when he demonstrates his money manager evaluation process during a sales call to J.C. Penney and secures the giant U.S. retailer as his first client. Nearly four decades later, J.C. Penney remains a client. Russell begins managing money managers, instead of managing money, and opens a New York office to expand the concept nationally.
  • 1974 — Russell's institutional consulting business grows from a single client to 40 major U.S. clients, including AT&T and General Motors.
  • 1979 — Russell initiates its global presence with the opening of an office in London.
  • 1980 — Russell launches its investment management business in response to a client's request for funds that provide a fully diversified and packaged blend of investment managers. Russell begins leveraging its research of outside managers[clarification needed] to create a manager-of-managers investment process for smaller retirement plans and individuals.
  • 1984 — Russell researchers create the Russell 1000, Russell 2000, and Russell 3000 Indexes as objective benchmarks for evaluating manager performance. Russell opens an office in Toronto, Ontario.
  • 1986 — Russell opens an office in Tokyo, Japan, which has the second largest pension system behind the United States, and opens an office in Sydney, Australia, expanding to its fourth continent.
  • 1988 — Russell dedicates a new headquarters building in Tacoma, Wash. Custom-designed by George and Jane Russell, the 12-story granite building reflects both urban and natural environments, with each floor capturing views of downtown Tacoma, Puget Sound, and Mt. Rainier, Washington’s tallest peak.
  • 1990 — Mike Phillips is named president of Frank Russell Company. In 1993, he is named chief executive officer. George Russell continues as chairman. George Russell establishes Russell 20-20, a group of independent money managers and plan sponsors who explore emerging markets with an eye toward investment opportunities.
  • 1999 — Russell expands to Singapore. Northwestern Mutual, the largest provider of individual life insurance in the United States, acquires Russell. The company retains the Russell name, management, office locations and investment approach.
  • 2002 — George Russell retires, retaining the role of chairman emeritus for Frank Russell Company and Russell 20-20. Russell ranks 11th on Fortune Magazine's "Best Companies to Work for in America" list.
  • 2003 — Russell changes its business name to Russell Investment Group to better reflect its wide range of investment solutions. Craig Ueland is appointed president of Russell in July 2003 and then CEO effective January 2004.
  • 2004 — In March, Russell acquires Pantheon Ventures, the global private equity fund-of-funds specialist headquartered in London. In August, Russell acquires the Australian HR services operation of Towers Perrin.
  • 2007 — Russell's family of U.S. equity indexes goes global with the launch of a fully integrated family of global stock indexes. The Russell Global Indexes provide investors worldwide with a comprehensive set of benchmarks that cover small-cap, large-cap and all-cap companies in developed and emerging markets. Russell opens an office in Seoul, Korea.
  • 2008 —
Russell's Board of Directors accepted the resignation of Craig Ueland and named John Schlifske, executive vice president with Northwestern Mutual and a member of Russell's board, as Russell's new President and CEO.
Russell investments announced that they might leave Tacoma, having outgrown their old headquarters. The lease on the headquarters on A Street expires in 2013. Local government officials, wary of losing the biggest company in downtown Tacoma, have started an attractive campaign to keep Russell in Tacoma, including plans for a brand new headquarters.[3][4]
FT reports that Russell Investments is to close two of its three main hedge funds following a sharp drop in assets under management to less than two billion USD. Investors were already gated and redemptions reported to be high. Many staff in the Alternatives Division were laid off, with the few remaining persons employed to oversee the wind-down process of the above.
  • 2009 —
Russell’s Board of Directors named Andrew Doman as Russell’s new Chief Executive Officer. Andrew Doman assumed role of President upon John Schlifske's return to Northwestern Mutual.
Russell Investments said they would move headquarters from Tacoma to Chase Center in Seattle.
  • 2010 — Russell Investments completes move of headquarters to Seattle. The former Chase Center building is now renamed Russell Investments Center.
  • 2011 —
Russell's Board of Directors named Len Brennan as Russell's new Chief Executive Officer. He is also chief executive of the firm's Europe, Middle East, Africa business.
Russell Investments opens its first regional office in Germany with the launch of Frankfurt operations during October.
  • 2014 — Northwestern Mutual sells Russell Investments to London Stock Exchange Group for $2.7 billion.

Products and services[edit]

Russell provides financial and investment services to institutional clients such as pension funds, non-profits, healthcare systems and defined contribution plans.[5][6][7] Individual investors can access these services through one of Russell's 580 partners, such as banks, brokers and insurance companies.[8][9] Russell U.S. Indexes have $4.1 trillion in assets benchmarked to them, including more than $80 billion in ETF assets that are linked to Russell’s Indexes.[10]

Russell launched its family of U.S. indexes in 1984 to measure the U.S. market segments. The resulting methodology produced the broad market Russell 3000 Index and the small-cap Russell 2000 Index. The Russell Global Index, introduced in 2007, captures 98% of the global equity market and reflects the performance of more than 10,000 stocks worldwide. As of June 30, 2008, Russell's U.S. indexes have US$4.0 trillion in assets benchmarked to them and account for 63.3 percent of U.S. equity products benchmarked by U.S. institutional investors. Russell/Nomura equity indexes (calculated with Nomura Securities Co., Ltd.) offer broad market or style benchmarks for investors in Japan.[citation needed]

In North America, Russell delivers target date and target portfolio products directly to Defined Contribution (DC) plan sponsors, as well as distributes LifePoints Funds through financial professionals.

See also[edit]

References[edit]

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