Frank Russell Company

Frank Russell Company
FTSE Russell
Founded1936 Edit this on Wikidata
Headquarters,
OwnerLondon Stock Exchange Group
Websiteftserussell.com
Russell Investment
Subsidiary
IndustryFinancial Services
Founded1936
HeadquartersRussell Investments Center
Seattle, Washington, United States
Key people
Michelle Seitz, CEO
AUM$261.2 billion as of 2018-12-31[1]
Number of employees
1350[2]
ParentTA Associates
Websiterussellinvestments.com

Frank Russell Company is a subsidiary of London Stock Exchange Group (LSEG). However, its asset management division, as Russell Investments, was sold by LSEG to TA Associates in 2015. Russell Investments provides multi-asset investing solutions[buzzword] to institutional investors, as well as to individuals via financial advisors.[3][non-primary source needed] Russell Investments is owned by private equity firms TA Associates and Reverence Capital Partners.[4][5][non-primary source needed]

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.
  • 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 benchmarks for evaluating manager performance. Russell opens an office in Toronto, Ontario.
  • 1986 — Russell opens an office in Tokyo, Japan and opens an office in Sydney, Australia.
  • 1988 — Russell dedicates a new headquarters building in Tacoma, Wash.
  • 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.
  • 1998 — Northwestern Mutual, a life insurer in the United States, acquires Frank Russell Company.[6] The company retains the Russell name, management, office locations and investment approach.
  • 1999 — Russell expands to Singapore.[7]
  • 2002 — George Russell retires, retaining the role of chairman emeritus for Frank Russell Company and Russell 20-20.
  • 2003 — Russell changes its business name to Russell Investment Group.[citation needed] 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 family of global stock indexes. Russell opens an office in Seoul, Korea.
  • 2008 — 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.[8][9]
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.[citation needed]
  • 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 Frank Russell Company to London Stock Exchange Group for US$2.7 billion.[10][non-primary source needed] The acquisition was completed in December 2014.[11][non-primary source needed]
  • 2015 — LSEG separates Russell's index business from the consulting, asset management and consulting business by forming "FTSE Russell" brand[12][non-primary source needed]
  • 2015 — London Stock Exchange Group sold Frank Russell Company's asset management division Russell Investments[13] to TA Associates and Reverence Capital Partners for US$1.15 billion.[14][15] The transaction was completed in 2016.[13][non-primary source needed] LSEG kept the remaining of Frank Russell Company, as well as the indexes side of the business as FTSE Russell.
  • 2017 — Willis Towers Watson signs a definitive agreement to acquire its stand-alone Australian actuarial business for an undisclosed sum.[16]
  • 2017 - Michelle Seitz named CEO of Russell Investments [17]

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.[18][18][19] Individual investors can access these services through one of Russell's 580 partners, such as banks, brokers and insurance companies.[20]

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]

After purchasing all of Russell from NorthWest Mutual in 2014,[21][non-primary source needed] the London Stock Exchange Group announced on May 18, 2015 the launch of ‘FTSE Russell’, the new integrated name created for the combined businesses of FTSE Group and Russell Indexes. Effectively splitting out the index business from Russell's advice, asset management and investment management offerings, FTSE Russell will now operate as one joint global index business which is no longer owned by Russell Investments or TA Associates.[22][non-primary source 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]

  1. ^ "Russell Investments' history". Russell Investments. Retrieved 2 March 2019.
  2. ^ "Russell Investments' history". Russell Investments. Retrieved 2 March 2019.
  3. ^ https://russellinvestments.com/us/about-us
  4. ^ News article
  5. ^ http://www.ta.com/about/news/ta-associates-and-reverence-capital-partners-complete-acquisition-of-russell-investments-from-london-stock-exchange-group
  6. ^ Lohse, Deborah (August 10, 1998). "Northwestern Mutual Life To Acquire Frank Russell". The Wall Street Journal. Retrieved March 19, 2019.
  7. ^ DiBiasio, Jame. "Russell expands Singapore team | russell, expands, singapore, team". FinanceAsia. Retrieved 2019-07-20.
  8. ^ "Local News - The News Tribune". thenewstribune.com. Archived from the original on 2013-02-04.
  9. ^ "Local News - The News Tribune". thenewstribune.com. Archived from the original on 2012-09-12.
  10. ^ "PROPOSED ACQUISITION OF FRANK RUSSELL COMPANY AND FULLY UNDERWRITTEN RIGHTS ISSUE" (Press release). London Stock Exchange Group. 26 June 2014. Retrieved 18 March 2019.
  11. ^ "Completion of Acquisition" (Press release). London Stock Exchange Group. 3 December 2014. Retrieved 19 March 2019.
  12. ^ "LSEG launches new FTSE Russell brand" (Press release). London Stock Exchange Group. 18 May 2015. Retrieved 18 March 2019.
  13. ^ a b "TA Associates and Reverence Capital Partners Complete Acquisition of Russell Investments from London Stock Exchange Group" (Press release). Boston: TA Associates. June 1, 2016. Retrieved March 18, 2019.
  14. ^ "London Stock Exchange sells Russell Investments for $1.2bn". The Telegraph. London. October 8, 2015. Retrieved March 18, 2019.
  15. ^ "Proposed Sale of Frank Russell Company's Asset Management Business" (Press release). London Stock Exchange Group. October 8, 2015. Retrieved March 18, 2019.
  16. ^ http://www.insurancebusinessmag.com/nz/news/breaking-news/breaking-news-willis-towers-watson-announces-latest-acquisition-60258.aspx
  17. ^ https://russellinvestments.com/us/about-us/newsroom/2017/michelle-seitz-named-chief-executive-officer-of-russell-investments
  18. ^ a b "Pensions & Investments".
  19. ^ "Working at Russell Investments". GlassDoor.com.
  20. ^ "Advisers stick to global-diversification guns despite turmoil". InvestmentNews.
  21. ^ [1]
  22. ^ [2]