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May 20, 2011

Russell strengthens ETF business

• Investors can take advantage of new instalment warrant
• Russell launches US ETF business

SYDNEY, May 20, 2011 - Global financial services firm Russell Investments today announced a series of new opportunities for investors within its ETF business, which celebrated its first year milestone this month. The Russell High Dividend Australian Shares ETF (RDV) was launched in May 2010 as Australia's first income focused ETF, amassing over $150m in assets under management, as at today.

One of the opportunities is the recent launch of a new Instalment Warrant by global financial firm Citigroup. The new offering is a CitiFirst Self Funding Instalment over RDV that offers investors and SMSFs a convenient way to borrow without the risk of margin calls. Investors will receive franking credits and capital appreciation as if they owned RDV outright; however the distributions will be used to reduce the loan amount. ASX ticker code is RDVSOZ.

“This new offering will be an opportunity for investors to gain moderately geared exposure to the shares in RDV” said Amanda Skelly director of ETFs, Australia. “And investors who invest in RDV or the new warrant before 23 June 2011 will qualify to receive the June distribution”.

RDV's innovative design has already proven popular with SMSF investors, who seek the tax-effective income, diversification and growth that RDV aims to deliver. Russell followed the success of RDV by launching its second ETF earlier this year, the Russell Australian Value ETF - the first style-based ETF to hit the Australian market.

Russell launches US ETF business

Russell Investments has launched its first U.S. ETFs, the Russell Investment Discipline ETFs™, a suite of innovative ETFs listed on the NYSE Arca. Drawing on Russell's decades of expertise in multi-manager research and index construction, Russell aims to provide next-generation ETFs to help investors construct portfolios and manage risk. The Russell Investment Discipline ETFs are the first family of ETFs designed to offer focused, transparent and consistent exposure to U.S. large-cap equities across six investment disciplines commonly practiced by professional investment managers. They include the Russell Aggressive Growth ETF, the Russell Consistent Growth ETF, the Russell Growth at a Reasonable Price ETF, the Russell Equity Income ETF, the Russell Low P/E ETF and the Russell Contrarian ETF.

Each Russell Investment Discipline ETF tracks the performance of a corresponding Russell Investment Discipline Index, which is independently screened and constructed in order to reflect the return patterns of a particular investment strategy. The Russell Investment Discipline Indexes are constructed from the companies in the Russell 1000® Index, which is the most widely used U.S. large-cap index among institutional investors.

“Having been involved in the ETF industry since its inception through my career, I recognised an opportunity, perhaps unique to Russell, to provide sophisticated ETF products that expand beyond traditional market offerings,” said James Polisson, managing director of Russell's global ETF business. “Our team is committed to offering truly innovative products and we believe that there is a tremendous opportunity for growth by creating ETFs that provide targeted exposures that have not been readily accessible to investors previously.”

Australian investors wanting to invest in the US ETFs from Australia are able to do so through the NYSE.

“Russell's ETF business in Australia is going strongly and we continue to listen to market feedback in developing our next products targeted at specific investor needs. Australia's success has been a global platform for Russell's ETF business and with the launch of our first US ETFs we can leverage further off global expertise,” Ms Skelly concluded.

For further information please contact Honner Media.

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 recognised for its depth of research and quality of manager selection. Russell offers a comprehensive range of implementation services that helps institutional clients maximise 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

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) and/or Russell Australian Value ETF (RVL) in deciding whether to acquire, or to continue to hold, units in RDV or RVL. Only persons who have been authorised as trading participants under the Australian Securities Exchange (ASX) Market Rules can apply for units in RDV or RVL through the latest PDSs. Investors who are not Authorised Participants looking to acquire units in RDV or RVL cannot invest through the PDS but may purchase units on the ASX. Please consult your stockbroker or financial adviser.

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.

Note: The Russell Investment Discipline ETFs are issued by Russell Investments, a USA Corporation, which operates through subsidiaries worldwide and is a subsidiary The Northwestern Mutual Life Insurance Company. Russell Investment Discipline ETFs are new and have limited operating history. There is no assurance the investment process will consistently lead to successful investing. There is no assurance that the stated objectives will be met.

Russell Investment Discipline ETFs are distributed by ALPS Distributors, Inc. ("ALPS"). Russell Investment Management Company ("RIMCo"), dba Russell Investments) serves as the investment advisor to the ETFs. ALPS and RIMCo are separate and unafilliated.

ALPS Distributors, Inc. does not distribute ETF products outside the U.S. and is not the distributor for the Russell High Dividend Australian Shares ETF or the Russell Australian Value ETF.

Russell Funds may not be eligible for sale in all jurisdictions or to all categories of investors. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment nor a solicitation of any type.

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