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SYDNEY, 20 September, 2005 – Russell Investment Group, the global leader in multi-manager investing, has launched a new style of superannuation investment that requires people to make only one
simple decision regarding their super: when am I going to retire? Open to all Australians, the new investment options are designed to suit the many Australians who are struggling to make a decision about their super because they feel overwhelmed by information, investment options and the fear of making the wrong choice.

The new funds are called the Russell LifePoints Target Date Portfolios. The investor simply decides when they expect to retire and selects the Portfolio that most closely matches that date. The Portfolios are based on the same principle as US ‘lifestyle’ funds – which since their launch in the midnineties have become one of the fastest growing investment phenomenons in the country. Today, more than one in three US retirement plans offer some form of ‘lifestyle’ fund. The Target Date Portfolios complement Russell’s core Diversified Portfolios, which include five risk-based funds.

According the Heather Dawson, Russell’s managing director, Austalian member services, US research shows most individuals would rather delegate their investment decision to someone else. The new Russell LifePoints Target Date Portfolios allow the investor to delegate the initial and ongoing asset allocation decision to investment experts at Russell. They offer a different approach to investing versus‘doing it yourself’. The Portfolios are backed by Russell’s multi-manager approach, powerful research capabilities and investment reputation. The Portfolios also provide unrivaled access to some of the world’s best investment managers.

The new Russell LifePoints Target Date Portfolios are strategically diversified across income and growth assets. However a key feature of the Target Date Portfolios is that they are dynamic and reallocate over time to become more conservative – that is, less heavily weighted in growth assets – as people approach retirement age. Ms Dawson said the automated function was critical in keeping investors on-track towards their retirement goal.

“US research shows that most investors don’t rebalance their portfolios once they have chosen an investment option,” Ms Dawson said.

Initially four funds will be created with the ‘target’ retirement dates of 2010, 2020, 2030 and 2040 – you pick the date you want to retire, and your Target Date Portfolio rebalances for you each year, all the way to retirement.

“As humans we are emotional beings and this is often played out in our investment decisionmaking. Research shows that it is actually our ‘behaviour’ as investors that has the greatest impact on our retirement security – not fees, not markets, and not fund performance,” Ms Dawson said.

For example, new data by independent US research house Dalbar shows the average equity fund investor in the US achieved a paltry 3.7 per cent average annual return over the 20 years 1985-2004 –
compared to a 13.2 per cent average annual return by the S&P 500 Index.

“During the greatest bull market in history, the average American investor achieved a lower actual return than US Treasuries (Government bonds)… without experience and knowledge of the markets, and relying on emotion rather than discipline, many people made poorly timed market moves.

“At Russell, we don’t believe Australians need more choice, rather they need clarity. Russell’s Target Date Portfolios simplify investment decision making and, most importantly, drive disciplined investor behaviour to help people stay the course toward retirement,” she said.

While simple in concept, underlying the Russell LifePoints Target Date Portfolios are highly sophisticated investment vehicles, drawing on Russell’s firepower as the world’s largest multi-manager and leveraging Russell’s 450 strong global investment manager research team. All Russell LifePoints Target Date Portfolios will be managed by Russell’s hand-picked investment managers from around the world, which are carefully combined for their complementary investment style and are monitored daily. Funds are expertly rebalanced to ensure minimal ‘leakage’.

The new Russell LifePoints Target Date Portfolios will be placed on the investment menu of the Russell SuperSolution Master Trust, which manages the super for large organisations such as News Limited, George Weston Foods and GE Corporation, and is open to all Australians.

“People need simple solutions that cut through the confusion that can paralyse investors,” Ms Dawson said. “We expect these Target Date Portfolios to appeal to a wide range of investors, including sophisticated investors, because they are low maintenance, but pack a punch in terms of accessing the world’s best managers and tailoring the right asset allocation.

“Essentially you just pick a target retirement date, put your money in and everything else is taken care of for you.”

Issued by Russell Investment Management Ltd ABN 53 068 338 974, AFS Licence 247185 (“RIM”). This document provides general information only. It 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. RIM is the issuer of units in the Russell Pooled Superannuation Trust ("Russell PST"). An invitation to apply for an investment in the Russell LifePoints ‘Target Date’ Portfolios of the Russell PST are expected to be made by RIM in a Product Disclosure Statement (“PDS”) dated 30 September 2005. A PDS will be made available when the product is released or otherwise made available. Any potential investor should consider the PDS in deciding whether to acquire, or to continue to hold, an investment in the Russell LifePoints ‘Target Date’ Portfolios. The PDS is expected to be made available on 1 October 2005 from Russell at Level 17 19-29 Martin Place, Sydney or by phoning (02) 9229 5111. RIM 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, RIM or its associates, officers or employees may buy or sell the financial products as principal or agent. You may contact RIM on (02) 9229 5111. MKT/977/0905