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May 9, 2011

Russell launches practice management program in response to FoFA reforms

• Industry expert John Nolan appointed to roll out Russell Practice Management
• Suite of initiatives planned to help advisers be FoFA ready

SYDNEY, May 9, 2011 -Global financial services firm Russell Investments has today launched Russell Practice Management (RPM) - a new practice management offering designed to help Australian advisers enhance their advice model and increase practice revenue. The service has already delivered solid results for advice firms in America, Canada and the United Kingdom and Russell's launch of RPM in the local market is in direct response to the Future of Financial Advice (FoFA) reforms.

RPM provides tailored front and back-office support in the areas of business management, operations, human resources and client servicing, covering topics such as client engagement, fees and pricing, client value propositions, leadership, change management and business structuring.

Russell also announced today the appointment of John Nolan as Practice Development Manager, Intermediaries, who will be responsible for rolling out the new service in the local market. Mr Nolan has 18 years' financial services experience including Head of Advice Capability at Ipac Securities and senior positions with AMP Financial Planning and Asgard Wealth Solutions. His focus at Russell will be on developing, delivering and implementing effective practice management solutions to advisers, licensees and key clients.

Russell's Managing Director for Retail Investment Services, Patricia Curtin, said the changing regulatory landscape made the introduction of the service all the more relevant.

"As the FoFA reforms are implemented, it's more important than ever for advisers to future-proof their businesses to ensure they evolve and grow, rather than simply survive the raft of changes approaching. We are committed to supporting advisers in this process and are confident John has the experience necessary to provide them with the right tools for success," Ms Curtin said.

According to Russell, the new RPM program will enable advisers to be FoFA ready by helping them articulate the value they bring to clients as they move away from portfolio construction to focus on quality advice while ensuring the potential impacts of FoFA are factored in to pricing models. RPM is also focused on assisting advisers to retain deeper, long-term client relationships.

Russell has been helping advisers implement practice management solutions for more than a decade in America, Canada and the United Kingdom. Russell's analysis* shows that advisers who successfully completed the twelve month RPM program have seen revenues rise by 30 to 100% over three years while in many cases the number of overall clients has fallen or remained steady. These results have been achieved by increasing the average revenue per client.

"We have already successfully partnered with hundreds of advisers across the globe to help them build valuable and sustainable businesses. We understand that every advice business is different so we'll be taking a highly tailored approach to meet each firm's individual needs and circumstances," Ms Curtin added.

"As the industry evolves to reflect the new regulatory environment, we are developing a full range of services and solutions to ensure advisers have the best possible outcomes available for their clients," Ms Curtin concluded.

Case Studies	Details	Stats at start of program	After 36 months
Adviser 1 1/2006-12/2008	Revenue Clients Revenue per Client	$336,862 227 $1,483	$998,000 100 $9,980
Adviser 2 1/2006-12/2008	Revenue Clients Revenue per Client	$459,042 350 $1,311	$945,423 110 $7,878
Adviser 3 1/2004-12/2006	Revenue Clients Revenue per Client	$508,630 190 $2,677	$1,840,872 209 $8,808

*The following table provides examples of how RPM has increased revenues for advice firms in the US over a 36 month period.