Russell SEO - Best Portfolio Management Strategy

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1 RUSSELL MODEL PORTFOLIOS Multi-asset in action See how some of the best investment strategies can be combined to work for you and your goals

2 NE E YEARS VE E YEARS A EGY A EGY Unused Unit Prices ANZ ITO ELL BSL K CFX G Sector Funds NWS SUN FMG ETFs IAG ASX Exchange traded funds SGP AGK GPT QBE The principles behind Sector Funds Investment Horizon s TWO THREE our investment approach Manager Selection LEI AXA AMC NAB QAN ORI CBA N We re a global asset manager with a unique set of Diversified funds capabilities essential to managing your total portfolio Manager Selection SEVEN and to meeting your desired outcome. SI X Stragic Asset Allocation Stay focused on your real goals Your goals are at the heart of everything we do. We are focused on getting Unused Member Services the outcomes that matter for you. Improving financial security for people Stragic Asset Allocation is what we re all about. Strategic asset allocation Employer Services Seek real diversification We believe that the best way to achieve good returns while keeping Strategic asset allocation risk under control isfunds through diversification. This approach attempts to Sector reduce the risk, lessen the impact of short-term fluctuations and is a solid foundation for investment returns over the long term. Question Use the most effective components Question Manager Selection Last year alone, Russell conducted over 4000 in-depth evaluation sessions with investment managers. This process is designed to find great managers, whether they are at boutique firms or well-known investment companies. Implementation NZ_icons Implementation Adapt responsibly to the markets Stragic Asset Allocation Enhanced Asset Allocation Russell s team of analysts constantly monitor the markets and will make adjustments in the funds as needed. This means that you can remain invested over the long term, giving you the best opportunity to achieve your financial goals. personal Sad Enhanced Asset Allocationassets Select Holdings Fund

3 Russell Model Portfolios MULTI-ASSET PORTFOLIO Asset allocation, manager selection and ongoing portfolio management all in a single investment portfolio. Managing the managers in Russell s Balanced Model Portfolio 4 Core Asset Classes 16 Sub Asset Classes 11% UK Growth Assets 11% Domestic Equity SUMMARY OF MANAGER ACTIVITY JANUARY 2010 JANUARY TOTAL NUMBER OF MANAGER CHANGES 69 Specialist Managers J O Hambro Ballie Gifford Investec Sanlam FOUR Capital Jupiter 30 TOTAL NUMBER OF HIRES 16 TOTAL NUMBER OF TERMINATIONS 14 FINE TUNING/BETTER FIT 2 KEY PROFESSIONALS LEFT FIRM This sample allocation represents Russell s Balanced Portfolio. There are ten model portfolios to choose from your adviser will help you customise a solution that s right for you based on your goals, your time horizon and your attitude to risk. The investment styles employed by a Fund s money managers may not be complementary. This concentration may be beneficial or detrimental to a Fund s performance depending upon the performance of those securities and the overall

4 A TOTAL PORTFOLIO SOLUTION To help you meet your financial goals you need a robust, well-researched investment solution. Choosing a multi-asset portfolio will give you diversification with the simplicity of a single investment decision. At Russell, we believe an effective multi-asset portfolio is built from the best strategies from around the globe. 30% International Growth Assets 11% Real Assets 30% International Equity 2.5% Commodities 3.1% Infrastructure 2.4% Real Estate Property 3.1% Cash 5.8% Global Bonds 3.8% Global Credit Glob + B Sanders MFS SGA ETFS RARE Cohen & Steers PIMCO Kempen F Harris McKinley Credit Suisse Deutsche Bank Invesco Colchester Loomis We AEW Loomis Wellington M W EII Realty Brookfield PIMCO BlackRock Strategic Columbia Russell Bluebay economic environment. The multi-manager approach could increase a Fund s portfolio turnover rates which may result in higher levels of realised capital gains or losses with respect to a Fund s portfolio securities, higher brokerage commissions and other transaction costs. Money managers listed are current as of 31/12/14. Subject to the Funds Board approval, Russell has the right to engage or terminate a money manager at any time and without a shareholder vote.

5 That s why we put our efforts into researching independent money managers from around the world with the goals of finding top performers then combining those managers into the funds within our portfolios. We ll blend these best-of-breed active managers with customised passive exposure to build strong portfolios you can trust. 48% Defensive Assets 1.2% al Macro Sterling onds 4.5% High Yield 7.9% Absolute Return Bond 14% Absolute Return Equity 2.4% Absolute Return Volatility 0.8% Cash 5.5% Short Term High Yield & Floating rate notes 0.5% EMD idelity Logan Circle Brandywine Alken Lazard Amundi Neuberger Berman Stone Harbour llington Stone Harbor BlueBay Havenport Levin Pictet ack & eise PIMCO Avoca Capital Hermes ICap DDJ Lazard Signia Insight Russell Pioneer Next Century Zebra H20 Wellington Bluecrest Westwood Royal London Investments in the Funds are not deposits with or liabilities of any of the money managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds. The money managers do not guarantee the performance of any Fund or any particular rate of return.

6 For more information please contact your financial adviser. IMPORTANT INFORMATION This sample allocation represents Russell s Balanced Model Portfolio. Model Portfolios represent target allocations of the four FP Russell ICVC funds, and the underlying managers and strategies; these models are not managed and cannot be invested in directly. You and your financial adviser may work to combine selected funds that differ from the illustrated combinations depending upon individual investment objectives. FP Russell ICVC (the Company ) is an investment company with variable capital incorporated in England and Wales under registered number IC and authorised by the Financial Conduct Authority (the FCA ) with effect from 22 October Fund Partners Limited is the Authorised Corporate Director (the ACD ) of the FP Russell ICVC and is authorised and regulated by the FCA. Registered office: Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset, BH21 7SB. Russell Investments Limited has been appointed as the investment manager and distributor in respect of the Company. Applications for shares in the Company are subject to the terms and conditions set out in the Prospectus, Key Investor Information Document (KIID), Supplementary Information Document (SID), Instrument of Incorporation and latest annual and half-yearly long reports of the Company. Investors and potential investors must read the KIID and are also advised to read the remaining documents (and in particular the risk warnings) before making an investment in the Company. Copies are available free of charge on request from the ACD and Russell Investments Limited. All portfolio asset allocations are as at 31/12/14. Unless otherwise specified, Russell is the source of all data and, to the best of Russell s knowledge, all information is accurate and current at the time of issue, however, this cannot be guaranteed. Please note that the value of investments and the income derived from them may go down as well as up and an investor may not receive back the amount originally invested. In the case of investments for which there is not a recognised market it may be difficult for investors to sell their investment or to obtain reliable information about its value or the extent of the risks to which it is exposed. Any past performance figures are not a guide to future performance. Any reference to returns linked to currencies may increase or decrease as a result of currency fluctuations. Issued by Russell Investments Limited, a company incorporated in England and Wales under registered number and with its registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone Authorised and regulated by the FCA, 25 The North Colonnade, Canary Wharf, London E14 5HS Mar2015 UKR