The March 22 edition of Pensions & Investments included an article based on an industry report from Cerulli Associates in Boston.
The Cerulli report contained errant speculation regarding the future of Frank Russell Co.'s consulting business.
In short, Russell and our new parent company, Northwestern Mutual Life, would have nothing to gain and plenty to lose by selling our consulting business. It remains our flagship business and has helped us build a reputation that is now the foundation of every growth initiative we are pursuing.
We also are leading the industry in finding effective ways to blend objective advice with implemented investment solutions.
Rather than reiterate my points here, I would refer you to the letter we have sent to Cerulli Associates and ask that you consider it as an open response to the Cerulli report.
(The letter reads in part: "Our reputation and experience as a consultant also provides momentum for our continuing expansion in investment management. On a direct service basis, we are building strategic relationships that allow retirement plans to rely on Russell for integrated advice and multiple-manager implementation. On an indirect service basis, we are building alliances with premier banks, advisors and brokers to deliver our investment approach to individual investors from Europe to Australia. The foundation for each of these initiatives is Russell's reputation for a strategic, multiple-manager investment approach. Now, more than ever, we are building on our reputation as we seek to provide investment solutions to a broader array of investors across the globe. Be assured that consulting will continue to serve as our flagship business as we pursue these objectives into the next millennium.")
Russell intends to remain strong in the global consulting arena, and I hope this will help clear up any confusion generated by the Cerulli predictions.
Michael J. Phillips
president and CEO
Frank Russell Co.
DSI International was not included on the list of enhanced index asset managers in the Feb. 22 special report on the leading index fund managers.
As of Dec. 31, DSI had $2.1 billion in our U.S. Controlled Residual Risk (enhanced index) program.
This is an increase of $1.6 billion from our 1997 year-end total.
In addition, our U.S. program has produced annualized excess returns of 225 basis points over the S&P 500 index for the past three years.
Michael J. Galbreath,
DSI International Mgmt. Inc.
Monitor Capital Advisors has always participated in P&I's index manager surveys but through a miscommunication did not get into the survey results in your Feb. 22 issue.
For the record, as of last Dec. 31, Monitor Capital managed $2.2 billion in U.S. institutional tax-exempt assets.
Of that, $1.68 billion was in domestic equity, $363 million was in domestic fixed income and $168 million was in international equity.
We offer these products through separate account management, pooled funds and tactical asset allocation strategies.
vice president-sales and marketing
Monitor Capital Advisors