SEATTLE – Doing good is just as important as doing well, the chief executive of Russell Investment Group said Wednesday.
Companies don’t have to pursue profit at all costs, Craig Ueland said.
“It’s absolutely essential for leaders of businesses to understand that,” he said. “We don’t do things in the community … because we think it’s good for Russell. We do it because it’s the right thing to do.”
Ueland spoke about corporate values and investment strategies at the University of Washington Business School.
Russell, the Tacoma-based worldwide investment group, runs itself as a “value-centered” organization, Ueland said. “We turn down business that’s not good business.”
The company also takes pride in treating employees well, he said. However, Russell demands strict adherence to its corporate code.
“There’s this wonderful, soft side of Russell,” he said. But if someone cheats on expenses, “they’re gone. If you violate the basic trust, I will escort you to the door personally.”
The financial services industry is going through a period of great change, Ueland said.
“We had a big market fall after a period of excess,” he said. “That’s when government reacts. That’s when government overreacts.”
Stock market returns are lower now than in the 1990s, Ueland said. Instead of 20 percent or higher, investors can expect gains of around 8 percent in the decade to come.
“We think that low-return environment is going to be around a long time,” he said. “If inflation stays low, you’re OK.”
But the new conditions mean investors should diversify their holdings and invest for the long term, Ueland said. “Too many investors focus on the last trend and assume it continues.”
Investors also should be disciplined, stick with a core portfolio and not chase the market hoping to strike it big with a single hot stock, he said. “Don’t take all your money and put it in one play.”
Those looking for alternatives to stocks and bonds should consider investing in three areas, Ueland said: overseas securities, privately held companies and real estate.
The British economy still is buoyed by overseas investments made a century ago, he said, calling that a valuable lesson for American investors today.
Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.
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