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January 16, 2012

Lonsec affirms Russell multi-manager funds' 'Highly Recommended' rating

• Commends Russell's extensive m anager research process

SYDNEY, January 16, 2012 – For the second year ii n a row, Russellll Investments' mulltii -manager funds have been recognised with a 'Highly Recommended' rating from Lonsec, which "believes Russell's on-the- ground research approach and the breadth and depth of information collll ected and assessed in its manager research process is a key competitive advantage over peers"

Lonsec's latest review of Russell's 18 multi-manager funds included the multi- and single-asset classes as well as the Russell-managed, Ventura suite of wholesale funds. In its report, Lonsec cited Russell's "strong competitive advantages in people, processes and product design" as support for the decision to maintain the 'Highly Recommended' rating, its highest level of recognition.

Russell's multi-manager approach, designed to minimise risk and exposure to any one fund manager particularly i n fluctuating market conditions is well established in the industry, with 2011 marking Russell's 25th anniversary in Australia and 75 years globally.

"With an annual global research budget of approximately A$50m, ...the scale and resources allocated to the manager research process by Russell is well in excess of other Multi- Managers assessed by Lonsec", the review noted. This process, Russell says, provides an extra layer of risk management to the investment process, keeping close tabs on each manager through regular face-to-face reviews to ensure managers stay true to their investment strategy.

Managing Director, Retail, Patricia Curtin said Russell's strong commitment to manager research supported advisers by freeing them from the burden of investment research and providing access to Russell's global database of investment and manager research.

"The scale and resources Russell dedicates to manager research and selection means we're able to support advisers with their responsibilities to clients under FoFA. By uitilising Russell's extensive due diligence processes, advisers can spend more of their time building client r elationships and have confidence their advice is backed by Russell's global expertise," Ms Curtin said.

Lonsec also "considers recent implementation enhancements to be of high importance, as they can help to significantly reduce cost leakage from the Funds."

As of October 2011 Russell's Australian multi- and single-asset funds held $ 21.8 billion FUM.

About Russell Investments

Russell Investments is an independent, global financial services firm that provides strategic advice, investment solutions, implementation services and global performance benchmarks that are customized to meet the unique needs of institutional investors, financial advisors and individuals.

Celebrating its 75th anniversary in 2011, and 25 years in Australia, Russell has pioneered innovations that have come to define many of the practices that are standard in the investment world today, and has four decades of experience researching and selecting money managers globally.

Russell has about US$141 billion in assets under management (as of 9/30/11) and works with 2,300 institutional clients, 530 independent distribution partners and millions of individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell has $2 trillion in assets under advisement (as of 12/31/2010) and traded $1.5 trillion last year through its implementation services business. Russell provides leading administration and member services to over 220,000 individuals through its Australian Member Administration Centre. The Russell Global Indexes calculate over 50,000 benchmarks daily covering 63 countries and more than 10,000 securities.

Founded in 1936, Russell is headquartered in Seattle, Washington, USA and has offices in Amsterdam, Auckland, Chicago, London, Melbourne, Milan, New York, Paris, San Francisco, Seoul, Singapore, Sydney, Tokyo and Toronto. For more information about how Russell helps to improve financial security for people, visit www.russell.com/au

Issued by Russell Investment Management Ltd ABN 53 068 338 974, AFS Licence 247185 ("RIM"). This document provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. This information has been compiled from sources considered to be reliable, but is not guaranteed. Past performance is not a reliable indicator of future performance. Any potential investor should consider the latest Product Disclosure Statement ("PDS") in deciding whether to acquire, or to continue to hold, an investment in any Russell product. The PDS can be obtained by visiting www.russell.com.au or by phoning (02) 9229 5111. RIM is part of Russell Investments ("Russell"). Russell or its associates, officers or employees may have interests in the financial products referred to in this information by acting in various roles including broker or adviser, and may receive fees, brokerage or commissions for acting in these capacities. In addition, Russell or its associates, officers or employees may buy or sell the financial products as principal or agent.

Copyright 2012 Russell Investments. All rights reserved.

MKT/4267/1111

The Lonsec Limited ('Lonsec") ABN 56 061 751 102 Manager Profile (assigned October 2011 ) referred to in this document is limited to 'General Advice" and based solely on consideration of the Manager's competencies. It is not a recommendation to purchase, sell or hold any products offered by the Manager, and you should seek independent financial advice before making any investment decision. The Manager Profile is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec did not receive a fee for rating the Manager, however, Lonsec may receive a fee from the Manager for research or rating financial product(s) provided by the Manager, using comprehensive and objective criteria.