Empowering your team, investment program and mission

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1 Outsourced CIO solutions NONPROFITS Empowering your team, investment program and mission I don't love this sky diving theme for this particular brochure - what about something like a crew team? Basically, something that implies that you need more INVESTED. TOGETHER.

2 Focus on your mission Securing your organization s financial future in today s fast-moving, complex and challenging market environment is demanding. It requires constant vigilance, timely, informed action, and resources and expertise that your organization may not possess. Chances are that expanding your team is not an option, so you are probably carefully examining how your limited resources can best be deployed. It is that kind of soul searching that is leading many non-profits to embrace an Outsourced Chief Investment Officer (OCIO) solution for their organization. It can help you more effectively manage and monitor your investment program, dynamically adapt to today s markets, and seamlessly handle your administrative details. By lifting those burdens off your shoulders, you get back time to focus on what really matters to your organization achieving your mission. AN OCIO SOLUTION FIT FOR YOU We recognize that making the move to an Outsourced CIO model is a big decision. When you re accustomed to doing and managing everything yourself, delegating responsibility can be hard. But the reality is you wouldn t be considering an Outsourced CIO solution if you didn t believe there were benefits to be gained. WHICH INVESTMENT DECISIONS TO DELEGATE? THE CHOICE IS YOURS What you choose to outsource will depend on your organization s resources, experience and infrastructure. You have the best understanding of what decisions and responsibilities your team has the time and expertise to take on and successfully implement. Those for which you don t have the time and/or expertise are obvious targets for outsourcing. AIM FOR A FLEXIBLE TOTAL SOLUTION Your outsourcing needs are unique to you. They are also likely to change over time as many investors learned during and after the financial crisis. So, ideally, you want a holistic OCIO solution one that delivers more than just the strategic advice traditionally provided by an investment consultant. 2

3 Peace of mind. A holistic solution will combine strategic advice with best-in-class investment management capabilities, implementation services and administrative back-up. You will have the flexibility to pick the services that best serve the needs of your organization and to adjust them as circumstances change. Russell is flexible in the level of investment discretion we can assume, with solutions customized to complement your organization's strengths and adding expertise where you most need it. BENEFITS OF AN OCIO RELATIONSHIP Your provider assumes greater fiduciary responsibility and accountability for investment decisions versus a traditional consulting model. A wider range of investment opportunities, including access to specialized strategies. A portfolio that is designed to adapt to rapidly changing market conditions. The potential to better meet your return or spending targets. More effective use of your team s time and expertise. Strategy DESIGN OCIO: A MORE HOLISTIC APPROACH FOR ACHIEVING BETTER OUTCOMES PRE-CRISIS Governance Objective Setting POST-CRISIS Stronger risk and liquidity management tools. Portfolio Management CONSTRUCT Review & Control MANAGE CONSULTANT CLIENT Asset Allocation Asset Class Strategy Portfolio Structure Manager Selection / Monitoring Execution Risk Management Performance Measurement & Evaluation RUSSELL CLIENT INVESTMENT DISCRETION 3

4 Outsourcing with Russell For over 35 years Russell has been managing investment portfolios and providing strategic advice to non-profit organizations. That experience gives us a profound and comprehensive understanding of the challenges you face day-to-day. It also drives our commitment to continuously develop best-in-class solutions for our non-profit clients. That experience and commitment is evident in our Outsourced CIO service a total portfolio investment management solution, with your mission as the outcome-oriented goal. CUSTOMIZATION BASED ON UNDERSTANDING A truly compatible OCIO solution will fit your organization like a glove. We understand what it takes to create that fit. It starts with us listening carefully (and continuously) to your specific challenges. We then leverage the experience and expertise within Russell to resolve those challenges with a complete, tailored service solution one that is ever mindful of the dynamic nature of your needs and market conditions. 4

5 Two teams working as one In your organization, as in ours, people are a critical asset. Our large, global team of investment professionals is a pivotal component of our OCIO Solution. They embody and deliver the global research, insights and multi-asset investment expertise that we believe is essential for you to get the most out of your investment program. As critical as our investment expertise is, being able to deploy it effectively for your benefit is what really matters and that is driven by how our team works with your team. We expect our people to be as passionate and committed to achieving your mission as you are. This starts by developing an intimate understanding of your organization and by becoming a seamless, natural extension of your team. Our team's passion and understanding is reinforced by our commitment to deliver consistently high quality service and we know we achieve that because our clients, through our yearly client satisfaction survey, repeatedly tell us so. Setting and expecting high standards from our staff is an integral part of Russell s culture and our ability to help you achieve success. And when we have done that we have achieved our mission to help improve your organization's financial security. A MULTI-ASSET INVESTMENT APPROACH To accomplish your mission, you need the right investment approach which we believe is a multi-asset approach. At Russell, that translates into a total portfolio solution that combines asset allocation, manager selection and dynamic portfolio management. We are one of only a few firms with the core capabilities to build and deliver a total portfolio solution molded to your desired outcomes. Client assets under advisement $2.4 TRILLION+ Client assets under management $255 BILLION+ TOP RANKED From Russell ranked in the top 3 among the 10 largest consultants* managers continously evaluated CAPITAL MARKETS INSIGHTS PORTFOLIO IMPLEMENTATION PORTFOLIO CONSTRUCTION $5 TRILLION benchmarked to Russell Indexes MANAGER RESEARCH Russell's entire history has been about delivering world-class services to improve client outcomes INDEXES All figures current as of 12/31/2013 *Consultant rankings reflect Russell's score in the annual Greenwich Quality Index of the 10 largest consultants. Results are based on interviews with approximately 1000 US institutional investors in 2010, 2011, 2012 and 2013 respectively. 5

6 Taking care of the operational details For many non-profit organizations, managing the day-to-day administrative and operational details is one of the biggest drains on resources. As a result, outsourcing some or all of those details as part of your total outsourcing solution, has the potential to yield significant benefits to your organization. Russell s Administrative Solutions team offers a flexible suite of services built to accommodate your precise administrative needs and designed to work seamlessly with your existing processes and team. You choose as few or as many of our services as you need to ensure your day-to-day operations run smoothly and we do the rest. RUSSELL'S COMPREHENSIVE ADMINISTRATIVE SOLUTIONS INCLUDE: Securities Gift Processing Endowment Accounting Donor Accounting Services Planned Giving Administration Vendor Coordination Audit Assistance Scholarship Distribution Services Custom Donor Communications Secure Online Access To Reporting Counting on Russell s Resources Dedicated non-profit team An average of 20 years of experience Global investment expertise 500 investment professionals around the world with expertise in a broad range of asset classes, including alternatives Global manager research 60 full-time manager researchers, located across the globe Thought leadership Insightful, non-profit focused content generated regularly by our dedicated non-profit team 6

7 Your guide to a successful, long-term investment outcome At the end of the day, what matters to your organization is having the financial resources to pursue and achieve your mission and a successful investment program is fundamental to achieving that goal. With Russell by your side, we are confident we can help you achieve that success. Our confidence comes from our extensive experience advising non-profit investors for almost four decades and our unequivocal commitment to three principles that define our mission to help improve your organization's financial security. We listen always and use the insights you share with us to flexibly help meet your evolving needs. We use our core investment capabilities to create and deliver a total, multi-asset portfolio solution that is uniquely aligned with your goals. We adapt to change, be it within your organization or the markets, and continuously work to discover and deliver world-class Russell researched investment managers and strategies to best serve your evolving needs. So, as you take or consider your first steps towards an Outsourced CIO solution we stand ready to be your guide ready to help you transform the day-to-day management of your investment program and help you secure your organization s long-term future and success. 7

8 WE D LOVE TO HAVE A CONVERSATION WITH YOU: Eric Macy MANAGING DIRECTOR, FIDUCIARY SOLUTIONS non-profits.russell.com Important Information Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. aicio Industry Innovation Awards 2013 Winner: In 2013, Russell was named the winner in the Investment Outsourcing category for asset managers and servicers. Notably Russell was recognized for its in-house implementation capabilities and robust investment and sales teams. Pensions & Investments Largest Outsourcer: For the fourth time in a row, Russell was ranked as the largest manager of institutional outsourced assets out of 73 firms in the biennial Pensions & Investments survey issued in July Fundfire Survey: For a fifth year in a row, Russell was voted among the top for having the best manager due diligence practices by participants in a 2013 Fundfire survey of consultant relations professionals. 55 consulting professionals from 30 institutional investment consulting firms participated in the survey. aicio Largest Outsourcer: For the third year in a row, Russell was reported as the largest manager of institutional outsourced assets. Russell ranked the highest out of the 36 firms in aicio's 2014 Outsourced CIO Buyers Guide based on AUM from its fully discretionary clients. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. Data is historical and is not indicative of future results. Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group. Copyright Russell Investments All rights reserved. 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. First used: August (Disclosure revision December 2014) USI