(Russell.com)

Russell recognised as leading multi-manager
Russell again named 'Preferred Multi-Manager' by Australian research house Lonsec

AUCKLAND, March 2006 — Russell Investment Group has once again been awarded the top rank in the prestigious Lonsec Multi-Manager Review — reinforcing Russell's ongoing dominance in multi-manager investing worldwide.

A multi-manager selects managers from the 'best' managers around the world in each asset class, and carefully blends different 'styles' of managers to achieve a superior risk and return outcome for an overall portfolio.

This is the second year in a row that independent research house Lonsec has assessed multi-managers in Australia. The 2006 Lonsec Multi-Manager Review covers 12 major multi-manager providers. There is no similar review of the multi-manager space in New Zealand. The Review assessed a range Russell multi-manager funds offered in Australia — including the International Shares Fund, the International Shares Aggressive Fund and the International Property Securities Fund ($A hedged) which have a large number of New Zealand institutional and retail investors. A "Highly Recommended" rating was ascribed to these three funds and to eight other Russell funds making Russell the most highly rated multi-manager.

In its commentary, the Lonsec Review highlights the superior resources and experience of Russell's longstanding global manager research team, saying: "Russell has a competitive advantage in its long heritage in multi-manager investing, extensive global resources and the size and experience of its global research team."

Fiona Lintott, Head of Retail Funds for Russell in New Zealand, said the Lonsec Multi-Manager Review highlights that when it comes to multi-manager investing, no one knows managers like Russell. "As the Group who first introduced the concept of multi-manager funds to the world and New Zealand, we are pleased we have maintained our strong position. We continue to deliver well researched and well diversified investment solutions to investors at all levels", she said.

Russell has established alliances with some of the strongest financial adviser groups in Australia and New Zealand . "Increasingly investors and advisers are coming to the conclusion that picking managers is not a stroll in the park. These organisations recognise that outsourcing the manager selection decision to Russell frees advisers from time-consuming administrative and portfolio rebalancing tasks. It also allows them to focus on delivering more value-add to clients and building up their practices", said Fiona.

According to the Lonsec Review, Russell's global Investment Manager and Research team gives the Group an "on the ground" advantage that could not be beaten by the "periodic international manager visits" employed by other Australian-based analysts.

Fiona explained, "Staying abreast of the best and brightest managers, and changes within capital markets, requires considerable resources. Russell employs more than 450 professionals from around the globe who just research and monitor managers, study the capital markets and construct investment portfolios. Russell's manager research effort remains by far the largest and most intensive in the industry."

Russell was also praised for accountability and risk management. The research methodology was said to be "comprehensive and well-developed". The fact that Russell portfolio managers are held personally accountable for the out-performance and risk management of their funds was also seen to be an advantage.

According to international research group Cerulli Associates, increasing demand for embedded-advice products as well as the increasing split between manufacturing and distribution functions in fund management are fueling the growth for multi—manager solutions. By every measure, manager-of-managers investing is becoming more popular around the world as investors and advisers recognise the benefits it brings.

In January, Russell was also named 'Manager-of-Managers of the Year' by Global Pensions magazine (2006), which surveys thousands of pension funds around the globe for its annual awards.