Alaska Permanent Fund picks Russell for $640m fundamental indexing brief - UPDATED

  • By: Raquel Pichardo-Allison
  • 14 Jul 2011
  • Be the first to comment
  • Print
  • Send

US – Russell Investments has landed a $640m mandate from the Alaska Permanent Fund for its Russell Fundamental Developed Large Company Index, the first mandate win for the firm in its new suite of fundamental indices.

The sovereign wealth fund has moved assets out of a market-cap weighted strategy previously run by State Street Global Advisors.

Ken O'Keeffe, Managing Director, Indexes at Russell Investment confirmed this was the firm's first mandate win into these indices since their launch four months ago but said pension funds in both the US and Europe have shown interest. The firm runs 24 indices within the suite.

He said the firm expects to announce more mandate wins from US pension plans before the end of the quarter.

Maria Tsu, director of investments at the Alaska fund said: "Overall, we feel that the Russell Fundamental Index is a good fit for our needs and we look forward to working with both Russell and Research Affiliates on this new mandate."

In June 2010, fundamental index provider Research Affiliates announced it had partered with Russell to develop a suite of indexes for the US market. (Global Pensions; 25 June 2010)

Research Affiliates chairman Rob Arnott said at the time the new suit would use three measures to weight securities: a sales weight adjusted to reflect leverage in a company; dividends including stock buy-backs, and the retained cash flow net of dividends and buy backs.

Visitors comments

Get the latest news direct to your inbox.

Pensions library


A guide to Pensions Stability


This guide to Pensions Stability explores the new financial and operational model for defined benefit (DB) pension schemes. Pension schemes are still being run with far greater risk than is necessary and there is an opportunity to create a more stable pensions environment for trustees and sponsors.


Joint institute pensions survey 2014


This inaugural survey among 326 members of the Chartered Institute of Personnel and Development (CIPD) and the Pensions Management Institute (PMI) asked whether auto-enrolment will deliver on its goals; if contribution rates for employees and employers need to rise; and whether pensions tax relief needs further reform.

Job of the week