Annual Industry Report Ranks Russell Largest Manager-of-Managers in the World; Manager-of-Managers Booming Across the Globe - 32% Market Growth in 2004.

TACOMA, Wash. -- Russell Investment Group remains the largest manager-of-managers investment firm in the world, according to Cerulli Associates' fourth annual survey of the manager-of-managers market. The report -- Cerulli Quantitative Update: Global Multimanager(1) Products 2005 -- shows Russell holding a 19.9% share of the rapidly growing US$492 billion global manager-of-managers market. The Cerulli Report(TM) is based on total assets under management as of Dec. 31, 2004.

According to the report, "increasing demand for embedded-advice products, as well as the increasing split between manufacturing and distribution functions in fund management are fueling the growth of assembled investment products."

Worldwide manager-of-managers assets grew 32% during 2004 -- the second consecutive year of 30%+ annual growth. Manager-of-managers products received a record US$50 billion of net new inflows during 2004, which was nearly twice the level recorded in 2003 -- a year where flows nearly tripled over 2002 levels.

In addition, global manager-of-managers assets grew faster than fund-of-funds for the third consecutive year. These results reinforce Cerulli Associates' belief that manager-of-managers products may slowly replace fund-of-funds in the retail space. Cerulli has projected a long-term compound annual growth rate of 14% for the manager-of managers segment.

"By every measure, manager-of-managers investing is booming," said Craig Ueland, president and chief executive officer, Russell Investment Group. "The sheer pace of the growth we are seeing is indicative that investors of all sizes around the world are seeking out two key things -- investment strategies that are truly diversified and an investment process that is truly disciplined."

While the United States continues to account for the majority of manager-of-managers assets, representing more than US$300 billion, the global average growth rate of the segment outpaced that of the United States in 2004. Notably, both the United Kingdom and Japan nearly doubled their manager-of-managers assets under management during the year.

Russell's assets under management have nearly tripled in the last six years from $45.6 billion at the end of 1998 to $135 billion today. It is the world's largest manager-of-managers firm, holding 19.9% of the global assets, 16.5% of the United States market, and 25.6% of the assets domiciled outside the United States.

Russell opened its first manager-of-managers funds in 1980, reached US$1 billion in 1982 and US$10 billion under management by 1991. In recent years, Russell has expanded its global distribution of manager-of-managers investment programs by developing business alliances with leading financial services organizations 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 organizations.

About Russell

Russell Investment Group, a global leader in multi-manager investment services, provides investment products and services in more than 39 countries. Russell manages more than $135 billion in assets and advises clients worldwide representing more than $2.3 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo.

Russell Investment Group is a registered trade name of Frank Russell Company, a Washington, USA corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.

(1) Cerulli considers the term "multimanager" to include assets of both manager-of-managers products and fund-of-funds. Cerulli defines manager-of-managers as "asset management products that use multiple subadvisors, each of which receives its assets in the form of a separate-account mandate." Fund-of-funds are defined as "public-offer collective schemes, managed funds, or mutual funds that invest in other public-offer collective schemes, managed funds, or mutual funds."