Russell Investment Management (RIM) is a global financial advisor based in Seattle. While this fee-based firm manages billions of dollars in client assets, the vast majority of those assets are managed by behalf of investment companies.
RIM is part of Russell Investments, a broader financial company. Some of the other branches of Russell Investments include Russell Investments Implementation Services, Russell Investments Capital, Russell Investments Commodity Advisor, Russell Investments Institutional Funds, Russell Investments Funds Management, Russell Investments Trust Company and Russell Investments Financial Services. There are also affiliates headquartered in countries all over the world, including Canada, Cayman Islands, the United Kingdom, Ireland, France, Australia, New Zealand, Korea and Japan.
The firm was named a top global manager of institutional outsourced income by CIO Magazine in 2019 and was a winner of the Barron’s Industry Award for Field Sales Distribution in 2018.
Russell Investment Management Background
Russell Investment Management was founded in 1982. It is an indirect, wholly-owned subsidiary of Russell Investments Group, Ltd., a company domiciled in the Cayman Islands.
The limited partners of certain private equity funds affiliated with TA Associates Management, L.P. indirectly hold a majority ownership interest in the parent company, while the limited partners of certain private equity funds affiliated with Reverence Capital Partners, L.P. indirectly hold a minority ownership. Additionally, members of Hamilton Lane Incorporated’s parent company also hold minority positions in Russell Investments.
Russell Investment Management Client Types and Minimum Account Sizes
There are also institutional clients at RIM. These include investment companies, pooled investment vehicles, pension and profit-sharing plans, other investment advisors, insurance companies, sovereign wealth funds and foreign official institutions and corporations.
There is no strict minimum account size at RIM. All of its individual clients are classified as non-high-net-worth on the firm’s SEC filings. The investment needed to procure the services RIM offers is negotiated individually by each client. The final determination will depend on a number of factors, notably the services each client will be needing.
Services Offered by Russell Investment Management
The following services are offered at RIM:
- Investment management
- Asset allocation
- Third-party money manager selection
- Portfolio management and construction
- Alternative asset advisory services
- Model portfolios
- Personalized managed accounts
- Wrap-fee programs
- Consulting services for institutional clients
Russell Investment Management Investment Philosophy
RIM has a multi-asset approach to investing, focusing on diversification, research and selection of unaffiliated money managers and portfolio managers. Short-term and fixed-income investments are used.
For money managed by RIM itself and not outsourced to money manager strategies, RIM uses both quantitative and qualitative analysis to build portfolios. The firm also uses a proprietary asset allocation model that is based on a client's preferences for risk, objectives and goals, investment horizon and liquidity needs.
Fees Under Russell Investment Management
Fees vary based on investment strategy, product type, account type and size, customization requirements and the range of additional services provided to the client or fund. All fees are negotiated in advance and are specified in the written agreement between the firm and each client.
Investment management fees are typically expressed as a percentage of assets under management (AUM). These fees, which are not published in the firm's brochure, are generally billed quarterly in arrears.
What to Watch Out For
According to SEC filings, RIM has had three disclosures involving violations of investment-related regulations in the last 10 years. Only one of those disclosures involved the firm directly and resulted in a $13,400 fine paid to the Securities and Futures Commission of Korea.
As a fee-based firm, RIM may be compensated when recommending clients to affiliated Russell Investments entities. Despite this conflict of interest, the firm and its representatives are bound by fiduciary duty to act in the client's best interests.
Opening an Account With Russell Investment Management
Individuals cannot directly open accounts with RIM. It serves financial advisors and institutional investors. If you want to contact about those services, call 1-800-426-7969.
All information is accurate as of the writing of this article.
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