Monday Morning: A caring, innovative couple steps back

George Russell’s life changed April 6. That was the day his wife, Jane, was diagnosed with cancer. And that was the day he decided to end his day-to-day involvement with Frank Russell Co. and devote all his time and energy helping Jane in her battle.

The evening of Nov. 17, 1,400 people from all walks of life – including Washington Gov. Gary Locke, Gen. John M. Shalikashvilli, former chairman of the Joint Chiefs of Staff; Dale Chihuly, one of America’s foremost stained-glass artists; and hundreds of Frank Russell associates – gathered at the Tacoma (Wash.) Dome Exhibition Hall to honor the work of George and Jane as they withdraw from the company.

Though George had handed over the day-to-day management to Mike Phillips, president and CEO, back in 1992, no one expected him to end his day-to-day involvement with the Tacoma company he joined 40 years ago and reshaped into the premier investment management consulting firm in the world.

But as he told those attending the “George and Jane Russell Commencement Exercise,” which the retirement party was called, April 6 changed his priorities. He decided to spend all of his time caring for Jane and supporting her in her battle against the illness.

The investment world will miss his vision and inventiveness.

During the past 40 years, George virtually invented investment management consulting, and his company pioneered most of the processes used today to evaluate, select and monitor money managers, be it for the management of a mutual fund, a pension fund or a wrap program. Through its consulting operations, Frank Russell influences the management of $1 trillion worldwide.

In addition, George invented the manager-of-managers pooled fund now widely used for smaller pension funds and larger wrap programs. The Frank Russell Co. now manages $66 billion through its own such fund.

George has not restricted his attention to investment problems in the United States.

Through the 20-20 Group of 20 large pension funds and 20 large money managers, he has tried to stimulate the development of capital markets by funding pension systems in other countries, particularly Russia and China.

And he has encouraged U.S. pension funds to become familiar with those countries and developing nations, and to invest some of their pension assets in them.

Some of that is known to large institutional investors. Less known is George’s work behind the scenes through the EastWest Institute to help some of those countries develop systems that would encourage private investment.

For example, he funded a program to bring order and clarity to the Russian government’s budget, a document heretofore known for its opaqueness, and he had significant influence on the shape of the Russian pension reform bill now passing through the Duma, the lower house of the Russian parliament.

In addition, he is financing research by Russian scientists on how to treat nuclear waste, a vital issue not only in Russia but also in the United States.

Locally, George and Jane have been heavily involved in economic development and charitable causes in Tacoma, their hometown.

The company has created more than 900 jobs in its Tacoma headquarters. In addition, besides giving to local universities, the Russells established an elementary tutoring program involving Frank Russell employees.

Frank and Jane also have spearheaded the development of the Museum of Glass – due to open next year – which is expected to help transform Tacoma’s waterfront area. They have also supported local music and theater groups.

Jane Russell joined Frank Russell Co. in 1984 as director of the People Division, part of the human resources function. She was responsible for introducing an employee sabbatical program under which Frank Russell employees can take eight weeks’ fully paid leave after 10 years of service to recharge their batteries or fulfill some non-work-related goal.

Jane was heavily involved in the design of Russell’s 12-story headquarters building, which helped spark revitalization in downtown Tacoma.

A few years ago, George asked her what she wanted for Christmas. Jane responded that she wanted a new Habitat for Humanity house. The Russells provided the financing for a house and took hammers in hand and joined the work on it – “a scary thought when you think about George as a carpenter,” said one Frank Russell associate.

While George and Jane Russell are ending their day-to-day involvement in the company, they will stay as involved as possible in their outside projects.

Perhaps they’ll even get to build a new house for Habitat for Humanity.

Mike Clowes is the editorial director of InvestmentNews.