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MARCH 10, 2011

Russell High Dividend ETF fastest growing in Australia

• Close to $150 million under management

SYDNEY, 10 March 2011 - Since its launch in May 2010, the Russell High Dividend Australian Shares ETF (ASX code RDV) has grown faster by assets under management than any other ETF launched in Australia, reaching $142 million in the first nine months, Russell Investments announced today.

RDV has experienced significant demand from investors hungry for income, particularly from the SMSF sector. Since launch, RDV's assets under management have grown at an average of around 35% each month.

RDV is based on a specially formulated index, the Russell Australia High Dividend Index, which seeks to deliver a dividend stream 1% higher than the broader market from a portfolio of around 50 Australian blue chip shares. The Russell index has a bias towards those companies that have a high but sustainable expected dividend yield and also demonstrate a history of paying dividends; dividend growth and consistent earnings.

"We developed RDV with SMSFs in mind so it's pleasing to see such strong demand from these investors who love their share investing but also want sustainable income without sacrificing growth opportunities," said Amanda Skelly, director Australia ETF business at Russell Investments. "ETFs are a good tool for SMSFs to diversify their portfolios and can be used as a complement to their own stock picks," she added.

Ms Skelly said Russell has also seen growing institutional take up, particularly among investors with an income focus, or who are looking for alternative ways to manage short-medium term cash. Russell is planning to launch a number of new products this year with a focus on this growing institutional interest. "We think there are numerous ways institutions can use ETFs, including portfolio tilting and as a plug for an active manager," said Ms Skelly.

"We are focused on creating ETFs that deliver a specific, targeted exposure and we are working on a number this year, including one we plan to release shortly, which we hope will replicate our success with RDV," Ms Skelly concluded.

About Russell
Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 40 countries. Over the course of its history, Russell's innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership.
Through a unique combination of wide-ranging and inter-linked businesses, Russell delivers financial products, services and advice. A pioneer, Russell began its strategic pension fund consulting business in 1969 and today is trusted by many well-known worldwide institutions for investment advice. The firm has US$149 billion in assets under management (as of 09/30/10) in its investment funds, retirement products, and institutional funds, and is well recognized for its depth of research and quality of manager selection. Russell offers a comprehensive range of implementation services that helps institutional clients maximize their assets. Russell provides leading administration and member services to over 220,000 individuals through its Australian Member Administration Centre. The Russell Indexes calculates over 50,000 benchmarks daily covering 65 countries and more than 10,000 securities.
Russell is headquartered in Seattle, Washington, USA with offices in Amsterdam, Auckland, Johannesburg, London, Melbourne, 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 us at www.russell.com/au.
The Russell High Dividend Australian Shares ETF tracks an index that is weighted towards companies that are expected to deliver dividends higher than the market average, however high dividends cannot be guaranteed.
Issued by Russell Investment Management Ltd ABN 53 068 338 974, AFS License 247185 (RIM). This communication 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. Any potential investor should consider the latest Product Disclosure Statement (PDS) for the Russell High Dividend Australian Shares ETF (RDV) in deciding whether to acquire, or to continue to hold, units in RDV. Only persons who have been authorised as trading participants under the Australian Securities Exchange (ASX) Market Rules can apply for units in RDV through the latest PDS. Investors who are not Authorised Participants looking to acquire units in RDV cannot invest through the PDS but may purchase units on the ASX. Please consult your stockbroker or financial adviser.
The Russell Indexes are trademarks of Frank Russell Company (FRC) and have been licensed for use by RIM. RDV is not sponsored, issued, sold or promoted by FRC and FRC makes no representation or warranty regarding the advisability of investing in RDV or in any of the securities upon which the Russell Index is based. FRC has no obligation or liability in connection with the administration, marketing or trading of RDV. FRC is not responsible for and has not reviewed RDV nor any associated literature or publications and makes no representation or warranty express or implied as to their accuracy or completeness. FRC does not guarantee the accuracy and/or the completeness of the Russell Indexes or any data included therein and FRC shall have no liability for any errors, omissions or interruptions therein.
Copyright 2011 Russell Investments. All rights reserved.
MKT/2859/0311