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SYDNEY, 9 May, 2005 – Global investment and superannuation specialist, Russell Investment Group, has completed a review of the investment options available through its fast-growing Russell SuperSolution Mastertrust, adding a range of new strategies designed to suit the differing needs of its 22,000 members. The review aims to provide members with the best available range of active, indexed and partly indexed investment options.

On the active side, three new high growth Russell multi-manager options have been added to the investment line-up – the Russell High Growth, International Property Securities - $A hedged and International Shares Aggressive.

And for the first time Russell has included a range of passive strategies in the Mastertrust, appointing State Street Global Advisors as the underlying manager for five indexed style options. These are Australian Shares Index, International Shares Index, and three diversified funds (Conservative, Balanced and Balanced /Blended option).

All options have been carefully constructed and priced at a level comparative to single manager funds. Further additions to the investment menu – such as the inclusion of single manager funds – are also under consideration.

Mr Mark Blair, Director of Product Management at Russell, said member demand and a changing investment environment meant investors were increasingly seeking new sources of return outside traditional asset classes and strategies. However he warned investors not to lose sight of ‘investment basics’ or to get distracted by the myriad of investment choices in the market.

“The options in the Russell Mastertrust reflects Russell’s core beliefs of having good diversification – across asset class, investment style and managers themselves – as well as setting long term objectives and sticking to them. We aim to offer the most sophisticated range of local and international investment options available in Australia, backed by Russell’s world-leading global manager research team. We don’t believe members need hundreds of investment options – but rather a selection of professionally researched managers and well constructed portfolios that will stand the test of time,” Mr Blair said.

“History shows that attempts to pick winning managers and to market time don’t pay dividends over the long term, and can prove an expensive and stressful exercise. Strategically diversified investing will, however, provide greater consistency during all types of markets – even highly uncertain ones. We’re saying to our members: set your financial objectives for retirement, and look to the long-term – and Russell will give you efficient, hand-picked access to some of the world’s best investment talent.”

The expanded investment line-up increases the Mastertrust investment options from 12 to 20. The changes follow the launch of Russell ChoiceSolution, a complete superannuation outsourcing service which allows employers to outsource all major elements of their superannuation under the new choice regime. The Russell SuperSolution Mastertrust currently manages around $1.5 bn on behalf of Australian investors.

Russell SuperSolution was recently awarded the top ‘5 Apples’ rating in the medium and large superannuation funds category by independent consultant Chant West Financial Services. Russell was also recently named the ‘preferred’ multi-manager provider in Australia by independent
research house Lonsec.