Community Investment Report | Russell Investments

What connects us?
COMMUNITY INVESTMENT REPORT

At Russell, we manage investments with a view to the future:
Improving financial literacy and providing children with
the means to succeed in life—these are the priorities that
lead Russell’s Focused Giving program globally. Through
giving committees, personal contributions, corporate
matches and volunteering, our associates respond to
needs in our communities around the world. These are
stories of the people they encounter, reflecting the human
return on our investment.
On our cover: Associates from around the globe. From left to right, Tyler
Kalberg, Heather Dawson, Mark Zenobio and his son Braxton, Lita Savage,
Julian Cox and his daughter Natalie, Cindy Baldwin and Mayumi Ohata.
On the back cover, Lisa Hesse, John James, Jill Naas and David Rainville.

What connects us to each other?
To the communities around us?
One of the wonderful aspects of Russell’s culture is the tremendous
commitment our associates make to improving the lives of other
people in the communities where we live and work.
Today, through a variety of corporate and grass-roots efforts, Russell
and our associates connect with those in our communities in ways that
transcend geography, social status and ethnicity. At Russell, we’ve
learned that by reaching out together, our connections with each other
inside our company grow stronger as well. I’m proud of the many ways
we’re helping to improve lives around the world.
Our COMMUNITY INVESTMENT REPORT highlights some of these
initiatives. We are honored to support and contribute to the success
of the organizations featured in these pages, and we understand
that our connection to each other is at the heart of our common
humanity. Please join me in celebrating the personal involvement of
our associates worldwide, who give their time and their resources to
improve the lives of others.
Sincerely,
Michael Phillips
CHAIRMAN
JUNE 2008

Small loans. Big change. Russell
supports organizations that improve
lives through microfinance, like
Grameen Foundation, whose small,
strategic loans transform lives all
over the world.

Creating opportunity.
At Russell, we focus our giving
on financial literacy and children.
We see both as investments and
are hopeful that the long-term,
positive effects of our initial
support will be far-reaching.
Russell’s purpose is improving
financial security for people.
In many countries around the world, families struggle
to survive, often on less than $1 a day. The difference
between abject poverty and relative success can be
the smallest of opportunities.
Through Focused Giving grants, local office
contributions and associate volunteering, we support
organizations that connect disadvantaged people
around the globe to opportunities—large and small.
Microfinance
Russell funds the global efforts of the Grameen
Foundation, which lifts people out of poverty
through microfinance—very small loans to very
poor individuals, mainly women. Our grants aid the
foundation’s technical support of hundreds of local
agency partners. In China, Baohua Zhu, a mother of
two, used microfinance loans to build a greenhouse,
grow produce and support her family.
Before, Zhu’s family struggled to survive on her
husband’s income, which he earned by traveling two
hours each way to do odd jobs in Beijing. With help
from microfinance loans from a Grameen Foundation
local partner, Funding the Poor Cooperative, Zhu was
able to grow tomatoes, squash, peanuts and eggplant,
and make enough to pay back the loans and realize a
profit. Today, Zhu’s profits are large enough to save
for her son’s upcoming college fees and to ensure that
her husband does not have to leave their village.
RUSSELL COMMUNITY INVESTMENT REPORT

Connect globally. Connect locally.
In August 2007, 12 associates from
Russell offices on four continents
helped Kenyan women build a chicken
house (at left), taking a week of
personal leave to make the trip.
The Administrative Professionals
Network at Russell’s Tacoma
office supported WWEE in 2007
through contributions, personal
volunteer hours, clothing drives
and more (below).
What does it take to make a
difference in the life of another?
Cottage industry
Women’s Enterprises International is funding
opportunities of a similar kind for groups of Kenyan
women. Here, women pool resources to raise enough
money to buy water tanks, one by one, for each family
in the village. Once they no longer need to spend
most of each day collecting water, these women
can turn to income-generating activities like raising
chickens. They’ve formed partnerships to build
chicken coops, buy chickens and sell the eggs.
Job assistance
Opportunity can also come in the form of a much
needed job. The Tacoma Community House
gives refugees this opportunity by offering bilingual
employment assistance, English classes and
immigration, citizenship and social services.
Thanks to help like this, Mbiya Ilunga was able to
find a job, learn English and support himself after
fleeing his country as a refugee.
Skills that earn
Washington Women’s Employment and
Education (WWEE) helps low-income women find
jobs through employment training in computer skills,
job readiness and workplace habits. WWEE gives
women the opportunity for a second chance, through
increased confidence, one-on-one consulting and
long-term follow-up. The safety net provided by
WWEE helps several hundred women each year
transition to independence.
RUSSELL COMMUNITY INVESTMENT REPORT

Teaching new skills.
Monetary mentors. Russell associates
volunteer to teach financial literacy
programs through The Smith Family,
which is also the recipient of two large
Focused Giving grants.
Financial literacy is one of
Russell’s philanthropic priorities.
Financial responsibility
Attitudes toward personal finance are often passed
down from generation to generation. Improving
financial literacy in one generation can transform
entire societies. In Australia, The Smith Family
provides low-income families with classes, mentors
and workshops to develop basic budgeting, saving
and investment skills, working with parents to
break the cycle of financial disadvantage and unlock
opportunities for their children through education.
Through The Smith Family’s Learning for Life
program, teenagers learn early on how the decisions
they make can have lifelong impact. The Smith
Family connects teens and their parents with local
nonprofit financial professionals who can help them
correct early mistakes and get back on track.
The ABCs of finance
In Thailand, financial literacy is starting even earlier
through the Thailand Securities Institute,
which promotes financial literacy and good savings
and investment habits through a series of books
targeted to schoolchildren ages 8 to 18. The books
include teachers’ manuals and activities for students.
RUSSELL COMMUNITY INVESTMENT REPORT

An early investment in financial
literacy and children. Through
contributions and associate volunteering,
Russell supports programs
like Junior Achievement (at left) that
focus on improving financial literacy
for young people.
Russell Tokyo sponsored the Economics
Koshien (far left top), which tests
advanced financial literacy.
Russell funded expanded printing
of literacy and investment books
for schoolchildren in Thailand (far
left middle).
Russell Auckland associates have
rolled up their sleeves and taken an
active role in the programs sponsored
by Enterprise NZ (far left bottom),
editing course material and exam
questions for the 16-17 age group and
awarding prizes to contest winners.
Improving financial skills
can benefit any age.
Finance and business
New Zealand teens are learning about financial
literacy and money management through
Enterprise NEW ZEALAND TRUST, a charitable
organization that works with school-based financial
literacy programs to benefit students. Through
programs and contests, like the Global Challenge,
students learn to invent products, devise marketing
plans, business plans and budgets, and enter the
plans in a competition.
Financial acumen
Economics Koshien is hosted by the Japan
Association for the Promotion of Financial
Literacy to increase financial knowledge among
high school students. Named after a prized high
school baseball tournament, the Koshien event
incorporates math-based physical challenges, written
tests, money counting and more. The objective is to
introduce complex financial concepts to teens and
test their know-how. Winners fly to New York to
observe the New York Stock Exchange in person.
Learning by experience
In Tacoma, the Junior Achievement Finance
Park is an experiential learning laboratory that
simulates life situations for eighth-grade students.
The students are given a set of life circumstances,
such as age, salary and number of family members,
and then go through a series of exercises that include
creating a budget, buying a house, buying a car and
getting a job. Students leave with an appreciation
for the real value of money, education and the cost
of living.
RUSSELL COMMUNITY INVESTMENT REPORT

A safe place. Two significant Focused
Giving grants to The Place2Be have
helped provide continuous service to
the boys and girls who face more than
just educational challenges at school.
Counselors use art therapy as one way
to help children express and deal with
the challenging situations of their lives.

Connecting to the future.
Giving priority to children’s needs is one way in
which Russell lives out our values.
What does a future of educational opportunity,
financial security and health for all children look like?
Safe haven
Some children bring more than their books into their
classrooms. They bring empty stomachs, heartaches
from home and violence from their neighborhoods.
For these children, the Place2Be is transforming
school into an environment where healing takes place
next to learning.
The London-based organization provides a safe place
in schools for low-income children to work through
anxieties, fear, anger and low self-esteem with
counselors who listen.
Clare was withdrawn and avoided speaking to
adults when she first came to The Place2Be. Using
nonverbal support, her counselor was able to help
Clare get in touch with her anger and anxiety,
expressing it through art and play therapy. After
several weeks of building trust and helping Clare
release her fears, her teachers report increased
communication and better attention in class.
Early intervention
One in three Canadian children under the age of 5
has a social, emotional or learning problem, often
stemming from a lack of positive parenting. Invest
in Kids is a Canadian organization that embraces
early intervention through parent training programs
like Parenting Partnership. Parenting Partnership
works with families from pregnancy through age five
to provide training, information and support for both
parenting and couple relationships.
RUSSELL COMMUNITY INVESTMENT REPORT

Long-term impact. Russell invests in the lives
of our youngest children through Focused
Giving grants to Thrive by Five and Invest in
Kids (this page top).
Capable students don’t always succeed,
because necessary resources, or just a little
encouragement, may be in short supply.
Russell supports organizations like Lehigh
Valley Summerbridge (this page bottom) and
Hilltop Artists (at left) to help fill these gaps.
In Washington State, half of all children begin kindergarten
without the emotional, social or learning skills
needed to participate in the classroom. Thrive by
Five is working to change that reality by educating
parents and improving child-care quality for the
most at-risk children, at a time of their lives when the
intervention can make a long-term difference.
Filling the achievement gap
Lehigh Valley Summerbridge, located in the
greater New York area, engages highly motivated
middle school students who have limited resources
in a two-year program. It includes a six-week-long
academic session during the summer months,
tutoring during the academic year and social outings.
Hilltop Artists In Residence Tacoma uses glass
art to connect young people from diverse cultures
to better futures—people like 19-year-old Niko,
who admits he’d probably be out “busting heads
on the street” without his involvement in the Hilltop
program. The program has given him a community
that cares, a marketable skill and a stronger sense of
personal worth.
Tutoring for success
Dozens of Russell associates give their time, attention
and caring to children in underserved communities.
Werlin tutors serve a diverse community of children
in Tacoma, from Somalian children who have no
knowledge of life in a developed country to local
children who just need help and attention with their
reading skills.
TORONTO FOUNDATION FOR STUDENT SUCCESS
pairs adults with underprivileged children in
a breakfast and homework-club setting. The
adults keep the connection simple. More than 20
Russell associates volunteer time in the mornings,
encouraging the children to eat a healthy breakfast
and helping them finish their homework.
RUSSELL COMMUNITY INVESTMENT REPORT

Photo by Samuel Cho.

Building community.
Honoring the honorable. Russell
Investments recognized London
associate Afsor Miah for his work
with Crowder neighborhood youth by
bestowing him its highest volunteer
honor, the 2007 Heart and Soul award.
This award, given annually to honor the
Russell tradition of community service
launched by the company’s “founding
mother,” Jane T. Russell, brings an
additional $10,000 to the organizations
Afsor supports.
In 2006, Russell associate Anna
Hocking received the Heart and Soul
award in recognition of her work in
support of Nkosi’s Haven, a Johannesburg,
South Africa, home for women
and children living with HIV/AIDS.
Russell’s genuine focus on
our people extends to making
connections where we live
and work.
Heart and soul for youth
When children have safe, positive activities to turn to,
they can avoid getting involved in drugs, gangs and
violence. In London’s Crowder neighborhood, The
Crowder Youth Project and Ensign Youth Club
provide alternatives to the influences of the street for
children every day.
Afsor Miah came from this neighborhood and saw
firsthand what life was like without guidance for many
area children. Today, Afsor, a Russell Investments
associate, volunteers as football coach, service project
leader, current events discussion facilitator and
nonprofit board member. He is working to build a
better, safer community for all Crowder youth.
Weaving a stronger safety net
In many communities worldwide, United Way is
the leading supporter of social services, funding
everything from emergency food and shelter to job
training, primarily through workplace contributions.
Russell’s Tacoma and Toronto associates run active
United Way fundraising campaigns each year.
In 2006, Russell President and CEO Craig Ueland
chaired the United Way Campaign for Pierce
County. The company joined him in an innovative
community-wide challenge, matching new or
increased contributions to the community safety
net. Under Craig’s leadership, the Pierce County
campaign increased 30% to reach an all-time high,
while Russell associate contributions grew 55% over
the previous year. In 2006-2007, Russell associates
contributed $2 million to Pierce County United Way,
including company matching funds.
RUSSELL COMMUNITY INVESTMENT REPORT

A second chance
Russell grants have helped the YMCA in Puyallup,
Washington, build meaningful and trusting relationships
with troubled teens through the Friends and
Servants program. Teens age 13–19 are referred to
the program from the juvenile courts. While the youth
work off their mandated community service hours
at the agency’s farm or greenhouse, they are paired
with a mentor, given acceptance and guidance from
a positive role model and receive a chance to make a
positive change in their lives.
Shining a light on philanthropy
Based in the United Kingdom, The Beacon
Fellowship encourages contributions to charitable
and social causes by celebrating exceptional
philanthropic acts by individuals who donate
time, leadership, money, skills or ideas to better
Healing connections. A Russell
Investments grant to Reconciliation
Park honors the men and women
who came to the U.S. as Chinese
immigrants (this page).
their community. Russell’s London office was
the proud sponsor of the 2007 Beacon Prize. By
highlighting the achievements of the prize winners
and showcasing innovation and best practice in
philanthropy, Beacon hopes that others will be
inspired and encouraged to make their
own contributions.
Healing community
In the late 1800s, more than 200 Chinese families
were driven from their homes in Tacoma by angry
citizens, fueled by anti-immigrant sentiment during
an economic downturn. Though prominent citizens
of the day stood up for the families, they were
outnumbered. The immigrants who could, fled.
Others were lined up and marched out of town in a
violent expulsion. The Chinese Reconciliation
Project seeks to bring healing to that community
today, by erecting a park to remember and honor
those who were driven from their homes. Russell’s
grant supports interpretive displays recounting
the history.
Russell associates build community
through events like the annual
United Way Day of Caring. A team
of associates (at left) make improvements
at a local child care center.
RUSSELL COMMUNITY INVESTMENT REPORT

Embracing humanity.
Offering a way out. Silas, a local
community leader, works with Operation
Sunlight/Afrikids Ghana (photos at left)
to counsel children and families who are
transitioning from mine work to school
and vocational training. Russell supports
his work through a holiday gift.
What is our most basic
connection? At a core level,
what connects us most to each
other is an acknowledgment of
our mutual humanity.
Organizations around the globe are working to ensure
that humanity is recognized in all people.
Into the light
Children growing up in Ghana are often put to work in
small-scale gold mines, where they enter small, dark
holes wearing nothing but vests, scruffy shorts and
miners’ headlamps. Operation Sunlight/AFRIKIDS
works with these children and their families to get
them out of the mines and into classrooms—children
like Baby, a shy teenage girl who thinks she may be
14 years old. Operation Sunlight helped her out of
the mines and into vocational training, where she
smilingly walked a 30 km roundtrip route daily to a
training center to become a hairdresser. Baby is now
proud to be styling hair in her own shop, supporting
herself and her family.
A caring adult for every child
Big Brothers Big Sisters is one of America’s most
respected mentoring organizations. The organization
provides supportive friendships between a caring
adult volunteer and a child. Russell’s Milwaukee
associates organized a bowling outing for a group of
little brothers and sisters waiting for a match. After
meeting the children, several associates signed up as
mentors, providing friendship, serving as role models
and creating community for their little brothers and
little sisters.
RUSSELL COMMUNITY INVESTMENT REPORT

Addressing basic needs. Russell
supports organizations that provide
basic human needs to people living in
the communities where we work and
live. Russell associates in Sydney deliver
food through Meals-On-Wheels (above).
Through Big Brothers Big Sisters (at
left), our associates connect as mentors
to at-risk youth.
Make-A-Wish Japan Foundation (at
right) makes big dreams come true—
such as a trip to Disneyland Tokyo, made
possible through Russell grants.

Connecting to ease suffering,
drive away fear and foster hope.
Caring for sick children
When children suffer from cancer or other chronic
disease, their families experience physical, emotional
and financial difficulties that often go beyond the
grief of their child’s condition. Children’s Cancer
Association of Japan improves the lives of these
families by operating two Parent Houses, giving
parents a place to stay close to treatment centers.
The agency also maintains a research and information
bank, makes referrals and helps families navigate
clinical and personal challenges.
Seriously ill children receive a ray of hope and
respite from their worries through the efforts of
Make A Wish Japan.
Providing food and comfort
The City of Sydney provides a Meals-on-Wheels
service to the elderly and individuals living with
disabilities. Volunteers deliver meals to those needing
assistance, providing nutrition and, in many cases,
much needed contact with a supportive, smiling face.
Preserving dignity for all
People in Tacoma and Seattle living with AIDS and
HIV have a place to turn for information, services
and support. Since 2005, Russell has been the lead
sponsor of Dine Out For Life, benefiting Pierce
County AIDS Foundation and Seattle’s LifeLong
Aids Alliance.
For clients like Kathleen G., the Pierce County foundation
got her off the streets where she was addicted
to drugs and alcohol, raped, stabbed and beaten. She
gained needed medication, services and a community
that cares. Kathleen now volunteers 15 hours a week
to the organization, speaking to groups about AIDS
awareness and life as an HIV-positive person.
RUSSELL COMMUNITY INVESTMENT REPORT

Connections that count.
How shall we measure success?
In the investments we make that
help improve people’s lives.
Russell contributes 1.5% of pretax operating income
to charitable organizations each year. Focused Giving
grants are allocated in two key areas: addressing the
needs of children and improving financial literacy.
Additional corporate contributions are made at the
discretion of seven giving committees around the world,
which respond to the needs of the communities in which
our associates live and work.
Russell also offers a generous cash matching program
for associate contributions of time and money.

$2.6 million
$1.9 million
$3.5 million
$3.6 million
$4 million
Focused Giving
Health and
human services
Education
2006–2007 Russell
contributions worldwide
In total, Russell contributed
over US$3.6 million worldwide
in 2007, equivalent to nearly
US$1,700 per associate.
$1 million
2003
2004
2005
2006
2007
2008
PROJECTED
Civic improvement
Arts and culture
Matching gifts
RUSSELL COMMUNITY INVESTMENT REPORT

Russell Investments, founded in 1936, provides
asset management and investment services to
institutional and individual investors around the world.
A pioneer in multi-manager investing and the creator
of the Russell Indexes, Russell manages approximately
US$213 billion in assets.
Headquartered in Tacoma, Washington, Russell
operates offices in London, Paris, Amsterdam,
Brussels, Johannesburg, Sydney, Melbourne, Auckland,
Singapore, Seoul, Tokyo, Toronto, Chicago, San Diego,
Milwaukee, San Francisco, Tampa, and New York.
More information is available at www.russell.com.
Copyright © 2008 Russell Investments. All rights reserved.
Russell Investment Group is a Washington, USA corporation,
which operates through subsidiaries worldwide, including
Russell Investments, and is a subsidiary of The Northwestern
Mutual Life Insurance Company.
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