MutualFundWire.com: Done Deal: Russell Takes a Drive Along U.S. One
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Wednesday, January 12, 2011|
Done Deal: Russell Takes a Drive Along U.S. One
Russell Investments [see profile] has signed a deal to buy Reno, Nevada-based ETF provider U.S. One, the investment adviser to the One Fund. The deal is expected to close
within the first quarter. [SEC filing]
| Jim Polisson|
Managing Director, Global ETF Business
Financial terms of the deal were not made public.
"By acquiring U.S. One, we can more immediately leverage our proprietary research to extend the options available to investors and include ETFs in our suite of products that we deliver to the marketplace," said Jim Polisson, managing director of Russell's global ETF business, in a press release on Wednesday.
Russell and Paul Hrabal, president and sole owner of U.S. One, inked the agreement on January 6, according to the SEC filing. Hrabal will work with Russell Investments as a consultant.
| Paul Hrabal|
Reached by The MFWire.com for comment on Wednesday afternoon, Hrabal referred inquiries to Russell's media relations representative.
A spokesman for Russell declined to provide additional comments beyond the press release.
Company Press Release
Russell plans to acquire ETF provider U.S. One
Acquisition helps build Russell's ETF business in the U.S. market
SEATTLE, WA, january 12, 2011 – Russell Investments announced today its intent to acquire U.S. One, Inc., a registered investment advisor and ETF provider. U.S. One, Inc. is the investment advisor to the One Fund, an ETF traded on the New York Stock Exchange (NYSE Ticker: ONEF). One Fund, a diversified global equity ETF of ETFs, provides exposure to 95% of the world’s stock markets with the objective of long-term investment growth. With this move, Russell has taken another step toward establishing its U.S. exchange-traded funds business.
A preliminary proxy statement was filed with the Securities and Exchange Commission today related to the replacement of U.S. One, Inc. with Russell Investment Management Company as the investment adviser to the One Fund. A shareholder vote to approve this change is scheduled for mid-February and the acquisition of U.S. One, Inc. by Russell Investments is anticipated to close shortly thereafter.
"Russell continues to build the infrastructure for viable and comprehensive ETF offerings," said Jim Polisson, managing director of Russell's global ETF business. "The acquisition of U.S. One provides Russell with a platform to play a unique role in this dynamic and fast moving growth arena. By acquiring U.S. One, we can more immediately leverage our proprietary research to extend the options available to investors and include ETFs in our suite of products that we deliver to the marketplace."
The anticipated acquisition of U.S. One, Inc. follows the successful launch of Russell’s ETF business in Australia last year. The Russell High Dividend Australian Shares ETF (ASX ticker: RDV) had U.S. $106 million in assets under management as of December 31, 2010.
Paul Hrabal, President of U.S. One, Inc. will work with Russell Investments as a consultant to the ETF business.
About Russell Investments
Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 40 countries. Over the course of its history, Russell’s innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership. The firm has $155.4 billion in assets under management, as of December 31, 2010. To see how Russell helps to improve financial security for people, visit www.russell.com.
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