FAF Advisors announced today that it has officially assumed management of Russell Investments’ new $99 million Russell Global Listed Infrastructure Fund– $A Hedged (the fund) for institutional and retail investors in Australia. Russell selected FAF Advisors as the manager of the fund because FAF Advisors’ global-infrastructure strategy “represents a strong core on which to build the fund, offering a broad, highly diversified portfolio and benchmark-aware style,” according to a Russell profile of FAF Advisors.

The new fund is part of Russell’s continuing commitment to alternative investment opportunities and is the first in a suite of new alternative investments that will become available to retail and institutional investors through the Russell Diversified Funds over the coming months. According to Russell, “Global listed infrastructure is currently a very attractive opportunity for investors wanting to diversify a multi-asset portfolio and seeking stable income from tangible or ‘real’ assets.”

About FAF Advisors’ Global Infrastructure Strategy

FAF Advisors is a pioneer in the listed global-infrastructure arena, offering a Global Infrastructure strategy for institutional investors since 2007 and launching one of the first publicly available global-infrastructure mutual funds in the United States for individual investors in 2008.

FAF Advisors’ Global Infrastructure strategy seeks to provide long-term growth of capital and income by investing in equity securities issued by U.S. and non-U.S. global infrastructure companies. The strategy’s investment process focuses on selecting companies that primarily own and operate tangible assets offering steady, predictable cash flows with limited ongoing capital expenditures. The portfolio’s diverse sector exposure and weightings clearly demonstrate the unique approach and commitment to a well-diversified portfolio that captures the investment benefits of the infrastructure asset class. The strategy utilizes a relative-value model to identify the best opportunities within each sector. In addition, the strategy invests in companies with a low correlation to global GDP growth, thereby offering greater potential diversification benefits.

“We use a differentiated investment strategy to create a diversified portfolio of global infrastructure stocks that may help investors gain exposure to predictable and growing cash-flow streams through investments in companies that may not be in their portfolios today,” said portfolio manager Jay Rosenberg. “This strategy, we believe, may help investors improve portfolio returns and reduce the overall volatility in their portfolios.”

Experienced Managers

Managing infrastructure portfolios is a natural fit for FAF Advisors, given the firm’s experience in investing in securities based on real assets. FAF Advisors has been investing in real estate securities since 1992 and currently manages more than $1.88 billion in real assets (open- and closed-end funds managed by the real estate team as of Sept. 30, 2009).

FAF Advisors’ Global Infrastructure management team includes veteran portfolio managers Jay Rosenberg and John Wenker, as well as supporting analysts.

Jay Rosenberg is the chief architect and primary portfolio manager of the fund with 13 years of experience in real estate finance and valuation. He has managed real-asset mutual funds and worked as an urban planner and real estate developer prior to entering the financial-services industry and has a master’s degree in urban planning and public policy.

John Wenker is co-manager of the fund and has 32 years of experience, including 26 in real estate finance and valuation. He serves as FAF Advisors’ head of real estate and has managed real estate funds since 1992. Wenker previously worked in real-estate property assessment and valuation and as a project manager on new and redevelopment projects for city government, was director of revitalization resources at a city community development agency, and has a bachelor’s degree in public administration.

Global Infrastructure Investing Set to Increase Dramatically

Investment opportunities in global infrastructure are set to expand significantly, according to Bruce Eidelson, director of Real Estate Securities at Russell Investments.

“The need to upgrade infrastructure in developed markets and expand infrastructure in developing markets is catalyzing growth in utilities, transportation, and communication sectors,” according to Eidelson.

Speaking to Australian institutional managers and investors in September, Eidelson said, “Russell expects to see a dramatic increase in the number of retail and institutional investors seeking access to alternative assets such as global infrastructure in coming years.”

Opinions expressed are subject to change, are not guaranteed, and should not be considered a recommendation to buy or sell any security.

FAF Advisors, Inc., is a registered investment advisor and subsidiary of U.S. Bank National Association. U.S. Bank National Association is a separate entity and wholly owned subsidiary of U.S. Bancorp.