Russell Investments

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Not to be confused with FTSE Russell.
Russell Investments Group LLC
IndustryFinancial services
Founded1936; 89 years ago (1936) in Tacoma, Washington, U.S.
FounderFrank Russell
HeadquartersRussell Investments Center,
Seattle, Washington
,
U.S.
Key people
Zach Buchwald (CEO, chairman)[1]
AUM$370 billion (9/30/2025)[2]
Number of employees
1,350 (2019)
Websiterussellinvestments.com

Russell Investments Group LLC is an American investment firm headquartered in Seattle, Washington.

Corporate overview

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According to American Banker, Russell Investments has approximately $370 billion of assets under management, as of September 2025. [3] The firm ranks as the third largest outsourced CIO (OCIO) provider globally.[4] Additionally, the company has $2.6 trillion under advisement across 32 countries, making Russell Investments the world's fourth-largest adviser.[5] The company has an investment outsourcing division to assist clients with investment and retirement portfolios, among other services. Clients have included AT&T, Boeing, and Union Pacific Railroad.[6]

Russell Investments had approximately 1,350 employees, as of late 2019.[7] The majority are based in Seattle, while others work at offices in London, New York City, Sydney, Tokyo, and Toronto, among other cities.[8][9][10]

History

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Founded by Frank Russell in 1936 in Tacoma, Washington,[11][12] Russell Investments began as a stockbroker and consultant, and later created the Russell 2000 Index, one of the most followed stock market indices in the U.S.[13] His grandson, George Russell, has been credited with expanding the company and pioneering the business of pension consulting when he secured J. C. Penney as the first pension client.[11]

Northwestern Mutual acquired Russell Investments during 1998–1999 for $1.2 billion.[11][12][14] The company's headquarters were relocated to Seattle in 2010.[12][15]

In 2014, London Stock Exchange Group (LSEG) acquired the firm for $2.7 billion.[13][14] Russell Investments had approximately $256 billion in assets under management at the time.[14] LSEG separated the Russell Indexes from other Frank Russell group companies doing business as Russell Investments, such as asset management and consulting, opting to retain the former and sell the latter.[13][16] LSEG announced the FTSE Russell brand in May 2015.[17]

During 2015–2016, the company was valued at $1.15 billion and purchased by TA Associates, a Boston-based private equity firm, from LSEG.[8][18] TA hired Goldman Sachs in 2019 to assess Russell Investments' possible sale.[6]

Institutional Business

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Outsourced CIO (OCIO)

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Russell Investments provides outsourced chief investment officer (OCIO) services to institutional clients including healthcare systems, where the firm has been ranked #1 globally for healthcare OCIO management by CIO Magazine’s 2024 OCIO Survey, as well as corporate and public pensions, endowments, foundations, and insurance organizations. 2 [19] The firm uses an open-architecture, multi-manager approach that integrates strategic and dynamic asset allocation, manager selection, risk management, and implementation services. Institutional clients account for approximately three-quarters of the firm’s business, with more than US$369.1 billion in assets under management. [20] [21]

Customized Portfolio Solutions (CPS)

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The firm offers customized portfolio solutions (CPS) that include overlay services, liability-aware strategies (e.g., LDI components), liquidity and cash-flow management, and derivatives implementation. [22] CPS engagements are used by asset owners to tailor exposures, coordinate public and private allocations, and maintain funded-status or risk targets while accommodating capital calls and redemptions. [22] Reported client segments include endowments & foundations and healthcare systems.[22]

Trading and transition management form a key part of Russell Investments’ implementation platform. The firm’s global trading desk executes more than US $2 trillion across all asset classes annually and operates continuously to provide liquidity coverage across equity, fixed-income, currency, and derivatives markets.[23] Head of Trading Jason Lenzo has noted that the desk’s multi-asset structure allows for asset-class specialization while maintaining risk oversight and cost efficiency. He emphasized the use of electronic execution, algorithmic routing, and off-exchange liquidity venues to optimize trading outcomes. [24]

The articles also highlight Russell Investments’ approach to transition management—coordinating multi-asset trades to minimize implementation shortfall while managing liquidity and benchmark risk. The firm balances automation with human oversight, leveraging algorithms for execution precision and trader relationships for liquidity access and price discovery. This combination of technology-driven execution and relationship-based market insight supports the CPS offering, enabling clients to realign portfolios efficiently during manager changes, funding transitions, or structural reallocations. [24]

Retail and Wealth Solutions

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Model Portfolio Leadership

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Russell Investments has been active in the advisor solutions market for four decades, offering asset allocation strategies and model portfolios to financial intermediaries in the United States and Canada. [25] Industry research has ranked the firm among the top five providers of model portfolios by assets and advisor adoption. [26]

The firm’s model portfolios combine multi-manager construction with a mix of active and passive strategies and are designed to provide diversified exposure across asset classes. [27] Russell Investments integrates its capital markets insights and manager research into model design, and offers tax-aware and income-oriented variants for advisors working with taxable clients. [28]

ETFs

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In June 2025, Russell Investments entered the U.S. exchange-traded fund market with the launch of a suite of actively managed, sub-advised ETFs. According to the firm, the ETFs were developed to give advisors and investors access to a broader ecosystem of investment ideas drawn from more than 250 asset managers with which Russell Investments invests, while maintaining the goal of providing lower-cost active management within the firm’s existing model portfolios. [29] [30]

The ETFs adopt the same multi-manager approach that the firm applies to its mutual funds, with mandates subadvised by a mix of specialist managers. [31]

Tax-Managed Investing and Personalization

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Russell Investments has offered tax-managed strategies for more than 25 years, focusing on after-tax returns for investors in taxable accounts. [27] Approximately 48 percent of the firm’s U.S. retail assets are held in taxable accounts, underscoring the importance of tax efficiency in its portfolio design. [32][33]

The firm provides direct indexing, a unified managed account structure that allows advisors to incorporate client-specific preferences, including tax-budgeting, income overlays, and security restrictions. Russell Investments also supports direct indexing strategies for advisors seeking customized benchmark replication with tax-loss harvesting opportunities. [34][35]

These capabilities reflect Russell Investments' institutional heritage—leveraging open-architecture, multi-manager research—and adapting it for high-net-worth and mass-affluent investors seeking tailored solutions. [36]

Private Markets and Access

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Russell Investments offers investors exposure to private markets through partnerships and open-architecture solutions that integrate alternative asset classes into diversified portfolios. [37]

In 2025, Russell Investments announced a collaboration with Reach Alternatives (Reach Alts) to expand access to private market opportunities for Australian investors and their clients; this partnership was covered in Australian trade press and described as increasing adviser access to private market strategies and infrastructure exposure. [38][39]

Retirement Policy and Public Commentary

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Since becoming CEO in 2023, Zach Buchwald has contributed to national discussions on retirement security and financial policy in the United States. In February 2025, he authored an opinion article in Barron’s proposing the creation of national retirement accounts to expand access to workplace savings for American workers who are not currently covered by employer-sponsored plans. [40][41][42]

Buchwald has also been cited in media coverage of the proposed "Make America Great Again (MAGA) Accounts," a policy initiative introduced in May 2025 that would provide a $1,000 annual government contribution into savings accounts for children. Supporters argue the accounts could encourage long-term savings, while critics have raised questions about their cost and effectiveness. In interviews with outlets including PLANSPONSOR and The Hill, Buchwald noted that such programs highlight the broader challenge of improving household savings rates and ensuring access to sustainable retirement income. [43][44][45][46]

Leadership

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George Russell served as chairman until 2002.[11] Craig Ueland was promoted from chief operating officer to president in 2003. He succeeded Mike Phillips, who also served as chairman, as chief executive officer (CEO) in 2004. Ueland was CEO until 2008, when Northwestern Mutual's John Schlifske was named president and CEO.[47] Andrew S. Doman began serving as CEO starting in early 2009,[48] and he was succeeded by Len Brennan in 2011.[13][49] Michelle Seitz became the company's first female CEO,[7] and seventh overall, in September 2017. Four months later, she became the chairman as well, serving in both roles until September of 2022.[50] In February 2023, it was announced that Zach Buchwald, then head of BlackRock's institutional business, would join Russell Investments as CEO. [51] Kate El Hillow has served as President and Chief Investment Officer since 2022. [52]

Awards

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In 2023, Russell Investments was named Mid-Size Manager of the Year at the MMI/Barron’s Industry Awards, which honor innovation and leadership in investment advisory solutions. [53] That same year, The TRADE magazine ranked the firm first in multiple categories in its Outsourced Trading Survey, awarding perfect scores for client service, onboarding, business model, and value for money. [54]

In 2024, Russell Investments was recognized in the U.K. and Europe for its factor-based investment expertise, receiving “Factor Investing Offering of the Year” at both the Pensions Age Awards and the European Pensions Awards. [55][56]

In 2025, the firm was honored in Australia with the Institute of Managed Account Professionals’ (IMAP) Managed Account Award for Responsible Investing. [57]

Leadership Recognition

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Russell Investments’ leadership has also been acknowledged by several major financial publications. In 2024, Kate El-Hillow, the firm’s President and Chief Investment Officer, was named one of Pensions & Investments’ Most Influential Women in Institutional Investing. [58] n 2025, American Banker included her among The Most Powerful Women in Finance, recognizing her role in advancing Russell’s multi-asset and institutional-to-retail strategies. [25]

See also

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References

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  1. ^ McElhaney, Alicia (February 8, 2023). "Russell Investments Taps BlackRock Exec for New CEO". Institutional Investor.
  2. ^ "Rusell Investments on LinkedIn".
  3. ^ "Rusell Investments on LinkedIn".
  4. ^ "OCIO growth assisted by volatile times". Pensions & Investments. 2020-06-29. Retrieved 2020-10-16.
  5. ^ "Most Powerful Women in Finance: No. 18, Russell Investments' Michelle Seitz". American Banker. 2019-09-23. Retrieved 2020-10-16.
  6. ^ a b Platt, Eric; Fontanella-Khan, James; Walker, Owen (November 18, 2019). "Asset manager Russell Investments put up for sale". Financial Times. Archived from the original on 2022-12-10. Retrieved January 22, 2020.
  7. ^ a b Garnick, Coral (November 27, 2019). "Russell Investments' first female CEO reflects on 'rarity and responsibility' of her position". Puget Sound Business Journal. American City Business Journals. Retrieved February 12, 2020.
  8. ^ a b González, Ángel (October 8, 2015). "Russell Investments' asset-management arm sold for $1.15 billion". The Seattle Times. Retrieved January 22, 2020.
  9. ^ "Russell's new chief says it's time to get 'personal'". Financial Times. December 12, 2017. Archived from the original on 2022-12-10. Retrieved February 12, 2020.
  10. ^ Sharp, Ari (January 5, 2020). "Asset management in an age of long life expectancy". The Japan Times. Retrieved January 22, 2020.
  11. ^ a b c d Brunner, Jim (June 7, 2009). "Tacoma vs. Seattle: fight over Russell Investments worth millions". The Seattle Times. Retrieved January 28, 2020.
  12. ^ a b c Matthews, Todd (September 9, 2009). "Russell Investments moving to Seattle". Tacoma Daily Index. Retrieved January 28, 2020.
  13. ^ a b c d Ricketts, David (November 19, 2019). "Russell Investments put up for sale by TA Associates — report". Financial News. Retrieved January 22, 2020.
  14. ^ a b c Gillie, John (December 4, 2014). "Northwestern Mutual completes sale of formerly Tacoma-based Russell Investments". The News Tribune. Retrieved January 28, 2020.
  15. ^ Tibbits, George (September 9, 2009). "Russell Investments will leave Tacoma for Seattle". The Herald. Associated Press. Retrieved January 28, 2020.
  16. ^ Bray, Chad (October 8, 2015). "TA Associates to Buy Russell Investments for $1.15 Billion". The New York Times. Retrieved January 22, 2020.
  17. ^ Boubaker, Sabri; Cumming, Douglas; Nguyen, Duc Khuong (April 27, 2018). Research Handbook of Finance and Sustainability. Edward Elgar Publishing. p. 346. ISBN 9781786432636. Retrieved January 22, 2020.
  18. ^ Brown, Courtenay (November 20, 2019). "Russell Investments is looking for a buyer". Axios. Retrieved January 22, 2020.
  19. ^ "At-a-Glance: Hospitals and Healthcare – An OCIO solution" (PDF). Russell Investments. 2025. Retrieved 13 Nov 2025.
  20. ^ [file:/mnt/data/Compliance_Legal_Copy.docx "Investors see stagflation ahead as Fed survey participants worry about inflation"]. CNBC. June 2025. Retrieved 2025-11-24. The article references Russell Investments' size and outlook. {{cite news}}: Check |url= value (help)
  21. ^ "Russell Investments expands OCIO efforts". FundFire. Retrieved 2025-11-24.
  22. ^ a b c "Russell Investments expands OCIO capabilities". FundFire. 2025. Retrieved 20 Aug 2025.
  23. ^ Lenzo, Jason (February 2025). "Excellence in Trading: Multi-Asset". Traders Magazine. Retrieved 25 Aug 2025.
  24. ^ a b Lyudvig, Anna (12 Feb 2025). "Balancing Technology and Relationships: Russell Investments' Approach to Equity Trading". Traders Magazine. Retrieved 25 Aug 2025.
  25. ^ a b "The Most Powerful Women in Finance 2025". American Banker. 2025. Retrieved 25 Aug 2025.
  26. ^ "RIAs are starting to embrace 'model' portfolios, pressuring the status quo proprietary model of giants like BlackRock, Vanguard and Capital Group and making TAMPs emphasize back-office support". RIABiz. 2025-08-19. Retrieved 13 Nov 2025.
  27. ^ a b "Russell Investments expands retail offerings". FundFire. Retrieved 13 Nov 2025.
  28. ^ "Rapid Growth of Model Portfolios: What Comes Next". Morningstar. March 2025. Retrieved 2025-11-13.
  29. ^ "Fastest-Growing Investment Managers". InvestmentNews. June 17, 2025. Retrieved 2025-11-24.
  30. ^ "Russell Investments enters ETF market with 5 sub-advised funds". Citywire. June 2025. Retrieved 2025-11-24.
  31. ^ "Russell Investments enters ETF market with 5 sub-advised funds". Citywire. June 2025. Retrieved 2025-11-24.
  32. ^ Garfinkle, Madeline (2025). "Customization Without the Chaos: Russell Investments' Approach to Custom Model Strategies". The Wealth Advisor. Retrieved 13 Nov 2025.
  33. ^ "Russell: PMA & model strategies coverage". FundFire. Retrieved 13 Nov 2025.
  34. ^ "Russell Espeseth on educating advisors on direct indexing". RIA Channel. 2025. Retrieved 13 Nov 2025.
  35. ^ "Retail roadmap and direct indexing trends". Ignites. Retrieved 13 Nov 2025.
  36. ^ "Advisor Upside with Russell Investments at Future Proof". The Daily Upside. Retrieved 13 Nov 2025.
  37. ^ "Insignia bid highlights private-equity binge". InvestmentNews NZ. Retrieved 13 Nov 2025.
  38. ^ Siljic, Jasmine (2025-04-02). "Reach Alts partners up with Russell Investments". InvestorDaily. Retrieved 13 Nov 2025.
  39. ^ "Reach Alts joins forces with Russell Investments". Money Management. Retrieved 13 Nov 2025.
  40. ^ Buchwald, Zach (5 Feb 2025). "National Retirement Accounts: How Would They Work?". Barron’s. Retrieved 13 Nov 2025.
  41. ^ "National Retirement Accounts: How Would They Work?". MarketWatch. 5 Feb 2025. Retrieved 13 Nov 2025.
  42. ^ "The Bold Move That Would Give Americans the Retirement Security They Crave". MSN Money. 5 Feb 2025. Retrieved 13 Nov 2025.
  43. ^ "What to Know About Proposed MAGA Accounts". PLANSPONSOR. 21 May 2025. Retrieved 13 Nov 2025.
  44. ^ "What to Know About the $1,000-Per-Child Trump Accounts". The Hill. 28 May 2025. Retrieved 13 Nov 2025.
  45. ^ "American Families Can Get Instant $1,000 Bonus Thanks to New Bill You May Have Unknowingly Qualified For". New York Times Post. 30 May 2025. Retrieved 13 Nov 2025.
  46. ^ "Trump Account Promises $1,000 for Every Kid – But Not Everyone Thinks It's the Smartest Idea Out There". Benzinga. 10 Jun 2025. Retrieved 13 Nov 2025.
  47. ^ DeSilver, Drew (June 10, 2008). "Russell Investments replaces CEO in sudden move". The Seattle Times. Retrieved January 22, 2020.
  48. ^ Helm, Leslie D. (October 2010). "Andrew S. Doman". Seattle Business. Retrieved January 22, 2020.
  49. ^ Stewart, Ashley (July 22, 2016). "Russell Investments CEO on acquisition, layoffs and the firm's future". Puget Sound Business Journal. Retrieved January 22, 2020.
  50. ^ Kline, Alan (September 22, 2019). "Most Powerful Women in Finance: No. 18, Russell Investments' Michelle Seitz". American Banker. Retrieved January 22, 2020.
  51. ^ "Russell Investments Taps BlackRock Exec for New CEO". 8 February 2023.
  52. ^ "Russell Investments appoints Kate El-Hillow as President and Chief Investment Officer". Pensions & Investments. 2022-04-19. Retrieved 13 Nov 2025.
  53. ^ "Money Management Institute Announces Winners for 2023 MMI/Barron's Industry Awards". Money Management Institute. 13 Oct 2023. Retrieved 25 Aug 2025.
  54. ^ "Outsourced Trading Survey 2023". The TRADE Magazine. Nov 2023. Retrieved 25 Aug 2025.
  55. ^ "Pensions Age Awards 2024 Winners Announced". Pensions Age. 21 Feb 2024. Retrieved 25 Aug 2025.
  56. ^ "European Pensions Awards 2024 Winners Announced". European Pensions Awards. 4 Jul 2024. Retrieved 25 Aug 2025.
  57. ^ "IMAP Awards Winners Announced 2025". Financial Newswire. 22 Aug 2025. Retrieved 25 Aug 2025.
  58. ^ "Russell Investments' President and Chief Investment Officer Kate El-Hillow named P&I's 2024 Class of Most Influential Women". Pensions & Investments. 2024. Retrieved 25 Aug 2025.