December 2025 saw the loss of a true legend in the investment business: George F. Russell Jr.
Many of you won’t recognize Russell’s name until I mention the Russell 2000 index, one of many of his innovations.
But Russell was a renowned investment pioneer who transformed many aspects of the financial services industry. He and his Seattle-based firm, Frank Russell Co., the forerunner of Russell Investments, are well known among institutional investors.
In 1993, Pensions & Investments named Russell, alongside Warren Buffett, as one of the top four influencers in institutional investing.
It was my honor to meet Russell in the mid-1990s when my firm began using some of his services.
Learning firsthand about what began with a desk, a vision and a part-time secretary to grow over decades into a global enterprise with a simple mission — creating financial security for people — had a big impact on my career.
Russell built a company grounded on non-negotiable principles of honesty, disciplined thinking and an enduring belief that financial stewardship carried responsibility beyond returns.
He knew that the financial security of the tens of thousands of employees in retirement rested on the work of his firm.
Russell talked about cold-calling corporate treasurers and CEOs of Fortune 100 companies back in the 1950s to pitch the then radical ideas of independent manager research, global diversification and transparent performance measurement.
He noted that when asked how big pensions and endowments had chosen their money managers, most simply said “they are our bank.”
Russell asked if they would be interested in independent manager research to help choose providers, and JCPenney was the first to say yes.
Russell always said he hired people who were smarter than he was, and he created an incredible team of researchers who regularly met with investment managers for years to identify top picks in various asset classes and investment styles.
His index business was created to measure different kinds of managers. There are literally hundreds of Russell indexes, the most common being the Russell 1000, 2000, 3000, midcap and microcap with their growth and value style variants.
By the time Russell Investments was sold in 1999, the company managed more than $42 billion in assets — and advised clients representing more than $1 trillion of assets.
Russell noted that before the Russell indexes were created, performance was simply measured against the S&P 500, hardly a reasonable way to compare results of a small cap or foreign stock manager.
By the time Russell sold Russell Investments in 1999, the company managed more than $42 billion in assets — and advised clients representing more than $1 trillion of assets.
But it wasn’t all about numbers. Russell’s late wife, Jane, was the heart and soul of the company, which treated employees like family and famously introduced sabbaticals and family-friendly policies long before they were industry standards.
Philanthropy was key for the Russells, with their Russell Family Foundation supporting and partnering with many nonprofit organizations to impact lives and strengthen communities.
Russell’s vision extended well beyond corporate borders. In 1990, after the fall of the Berlin Wall, he founded the Russell 20-20, leading delegations to Eastern Europe, Russia and China to channel Western capital to transitioning economies.
As chairman of the EastWest Institute, Russell facilitated dialogue on German unification, economic reform in the former Soviet Union and U.S.-Russian relations. He also served for 13 years as chairman of the National Bureau of Asian Research.
In his 2009 book, Success by Ten: George Russell’s Top Ten Elements to Building a Billion Dollar Business, Russell shared the principles he lived by, concepts that have been foundational in my work:
They are worth sharing today:
- Non-Negotiable Integrity
- Doing the Right Thing
- Creativity
- Hiring People Smarter than Yourself
- Hard Work
- Sharing Credit
- Planning for Transition
- Recognizing Luck
- Taking Risks
- Having Fun
Russell died at age 93 on Dec. 18 at his home near Tacoma, Washington. He is survived by four children, 11 grandchildren, 10 great-grandchildren — and a generation of leaders who benefited from his mentorship.
The investment world greatly benefited from this great man, and his principles should be followed by all who work in the field.