Russell and Axioma Launch Full Suite of Optimized Factor-Based Indexes

Four original risk factors complement Russell-Axioma Momentum Index

SEATTLE--(BUSINESS WIRE)-- Russell Investments, which owns the most widely used equity benchmarks for institutional investment products, and Axioma, Inc., a leading provider of advanced tools for portfolio optimization and risk analysis, have collaborated to deliver a family of five factor-based indexes. Designed to provide investors with easily implemented, true factor returns, the Russell-Axioma Factor Indexes are based upon the familiar investment universe of the Russell 1000®, Russell 2000®, and Russell 3000® Indexes, offering minimal exposure to other systematic “risk style” factors.

These pioneering indexes provide investors with practical tools for tracking factor performance returns, while managing index turnover and maintaining non-target factor neutrality. The suite of indexes features:

• Russell-Axioma Momentum Index

• Russell-Axioma Leverage Index

• Russell-Axioma Liquidity Index

• Russell-Axioma Beta (Market Sensitivity) Index

• Russell-Axioma Volatility Index

“We have responded to investor demand by providing them with the ability to measure a portfolio’s relative under or overweight against certain factors isolated by the Russell-Axioma Factor Indexes,” said Ron Bundy, CEO for Russell Indexes at Russell Investments. “These indexes provide practical tools for tracking factor performance returns, and by teaming up with Axioma, a natural partner for factor index development, Russell has ensured that the foundation of the Factor Indexes will be Axioma’s leading empirical research.”

Russell and Axioma first formed a partnership in December 2009, with the creation of the Russell-Axioma Momentum Index. With the addition of the beta, leverage, liquidity and volatility indexes, Russell and Axioma now offer a family of five factor-based indexes optimized to provide a highly tradable, well-defined basket of securities that closely track each specific factors’ returns.

Sebastian Ceria, CEO of Axioma, said, “Axioma’s factor risk models are fast becoming the new standard for risk management in the industry. Our partnership with Russell allows us to package our risk model factors into an index that can be used to track true factor returns for both investing and hedging.”

For more information please click: http://www.russell.com/Indexes/factor/.

About Russell Investments

Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 40 countries. Over the course of its history, Russell’s innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership. The firm has $149 billion in assets under management, as of September 30, 2010. To see how Russell helps to improve financial security for people, visit www.russell.com.

Russell launched its family of indexes in 1984 to more accurately measure U.S. market segments and better track investment manager behavior for its investment management and consulting businesses. The innovative index design includes float-adjusted market capitalization, annual reconstitution, multifactor style analysis as well as objective and transparent rules. Russell Indexes account for more than $3.9 trillion in benchmarked assets, as of December 31, 2009.

About Axioma

Axioma, Inc. develops and markets innovative risk analysis, portfolio rebalancing and performance attribution products for the financial services industry. Founded in 1998 and headquartered in New York with additional offices in Atlanta, San Francisco, London, Hong Kong, and Singapore, Axioma helps leading financial firms manage risk, increase returns and improve operational efficiency. For more information about Axioma, please contact Ellen Kiernan at 212.991.4503, or visit the company’s website at www.axiomainc.com.

Axioma Robust Risk Model is a trademark of Axioma, Inc.

Copyright Russell Investments 2010. All rights reserved.

Russell Investments is a Washington, USA Corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Russell Investments is the owner of the trademarks, service marks and copyrights related to the Russell Indexes.

Axioma and Russell Investments are the source and joint owners of trademarks, service marks and copyrights related to the Russell-Axioma Factor Indexes.

Russell publication of the Russell Indexes, including the Russell-Axioma Factor Indexes, in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based.

Indexes are unmanaged and cannot be invested in directly.

This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty.

Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

CORP-6390

Russell InvestmentsJordan McKerney, 206-505-1858
[email protected]
orMike Gelormino, 212-909-4780
[email protected]

Source: Russell Investments