V107 1 Gaining a competitive advantage Presenter Name Date.

1V107

Gaining a competitive advantage

Presenter Name

Date

2 FOR ADVISOR USE ONLYV107

Russell: Pioneers in managing managers

1985Russell Investments Canada opens

TodayManages C$215 billion

2005Named world’s largest manager-of- managers by Cerulli study

1980 First multi-manager funds launched.

70 years in business

38 years in manager research

27 years in multi-manager investments

C$215 billion* assets under management

1969George Russell pioneers objective manager research and strategic advice.

1969Frank Russell Securities enters institutional brokerage business.

1936Frank Russell opens Frank Russell Company.

Representative client list Alcoa

AmerisourceBergen Corp.

AT&T Inc. Barclays Bank

BHP BillitonBill & Melinda Gates Foundation

Boeing

Caterpillar Coca-Cola Bottling Co.

State Teachers Retirement System of Ohio

Toyota Motor Pension Fund

Wilfrid Laurier University

*Assets under management as of June 30, 2008. Representative client list as of April 2008. Clients may contract for a variety of services from Russell Investments. For more information on the selection criteria, please refer to the disclosure slide.


Russell Investments Canada evolution

Launch of SovereignPCS staff: 5AUM: under $500 million

1993

Launch of LifePoints

2000

Introduces Global Equity Pool

2005

Re-allocation of LP and SDMIP towards more foreign equity Sovereign management fee rebates New purchase options for LP Enhanced proposal generators and sales tools 2006

Sovereign auto-rebalancing

2003 Responds to investor demand for income with launch of SDMIP

2004

AUM: $6.6 billion YTD PCS staff: 34 Core Plus launched New Sovereign purchase options

2007


What we offerRussell’s value proposition

Intelligent portfolio design

Capital markets insight

Effective practice management

Effectivepractice

management

Capital markets insight

Intelligentportfoliodesign


What drives your business?

Learn Client profiling and documentation

Plan Investment planning and asset allocation

Implement Research and

implementation of investment product

Review Review plans with clients at least annually

plan

implementreview

learn

1

4 3

2


Common challenges

Client-focused activities - Learn, Plan, Review - the fountainhead for a good practice

more time on these activities produces the maximum business results

Administrative activities – Implementation – time consuming

Challenge Potential impact

Time: Finding more time to invest with clients and prospects

May impact asset gathering activities

Differentiation: Setting yourself apart from the competition

May impact close ratio

Implementation: Continuous research and monitoring of effective strategies

Imposes time constraints

Service model: Maintaining high-quality service and asset management

May impact retention ratio


220

400

5,200

Russell’s manager selection process

Manager products continually monitored & researched

Managers with a primary “hire” rating

Russell manager products used in funds

Focusing on people, process, portfolio and performance

Numbers are current as of March 31, 2008.


83

30

128

10

10

20

30

40

50

60

70

80

90

2003 2003-2004 2003-2005 2003-2006 2003-2007

Managers in the top 25% for consecutive years: 2003 – 2007

Why picking today’s hot manager isn’t the solution

Source: Russell Investments Canada Limited using Morningstar Canada, 2003-2007 In 2007, only 1 of the original 83 managers from 2003 had remained in the top 25% every year since 2003.


Performance quoted represents past performance and does not guarantee future results.Source: Morningstar Canada. As of 10/31/07

Mutual fund performance ranges 1 year annualized return ending October 2007

-10%

-5%

0% Return

5%

10%

15%

20%

25%

30%

35%

Top: 49.3%

Bottom: -11.7%

Top: 3.0%

Bottom: -0.7%

Top: 50.4%

Top: 26.3%

Bottom: -8.7%

Morningstar Universeperformancespread

40%

45%

50%

-15%

Canadian Equity Fixed Income U.S. Equity Overseas Equity

-20%

-25%

Bottom: -13.2%


MULTI-MANAGERSelecting and combining independent money managers in a way that complements each manager’s investment style.

MULTI-STYLEIn each asset class, different manager styles are combined to help reduce risk. Each manager specializes in a different style of investing.

MULTI-ASSETEach of the major fields of investment is included in a portfolio in proportion to your specific objectives.

Canadian Equities

Fixed IncomeCore/Core Plus

InternationalEquities

Small Cap

MarketorientedGrowth

Value

MULTI-ASSET

US Equity MULTI-STYLE

MULTI-MANAGER Manager 1Manager 2Manager 3

Our solution: Russell Pools


Russell mutual fund model strategies

HIGHERLOWER

HIGHER

RISK

PO

TEN

TIA

L R

ETU

RN

Conservative

Moderate

Balanced

Growth

Equity Growth

NOTE: As you move from left to right on the graph - increasing risk - there are different portfolios that can offer higher return potential. However, as with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Stocks

Bonds

5 diversified multi-manager portfolios

Model strategies represent target allocations of Russell funds; these models are not managed and cannot be invested in directly.


Russell LifePoints Portfolios:Packaging the process

As you move from left to right on the graph - increasing risk - there are different portfolios that can offer higher return potential. However, as with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Stocks

Bonds65% 35%

40%60%

50%50%

20%80%

0%100%Balanced

Income Portfolio

Balanced Portfolio

Balanced Growth

Portfolio

Long-Term Growth

Portfolio

RISK HIGHERLOWER

PO

TEN

TIA

L R

ETU

RN

HIGHER

All Equity Portfolio

Russell Canadian Equity Fund: 20%

Russell Overseas Equity Fund: 13%

Russell US Equity Fund: 14%

Russell Canadian Fixed Income Fund: 40% Russell Global Equity Fund: 13%

An example of how we package the Russell process for your clients.


Russell provides ….

Intelligent portfolio design

Access to institutional quality managers

Continuous monitoring and seamless manager changes

Capital markets insights

Manager research

Asset allocation research

Practice management

Business leverage

Freedom to focus on what matters


Opportunities

Challenge Potential Impact

Time: Finding more time to spend with clients and prospects

May impact asset gathering activities

Differentiation: Setting yourself from the competition May impact close ratio

Implementation: Continuous research and monitoring of effective strategies

Imposes time constraints

Service Model: Maintaining high quality service and asset management

May impact retention ratio

Time: Invest more time with clients andprospects

Deeper client relationshipsImproving asset base

Service model: Create and maintainfirst-class service model

Improved client retention

Implementation: Align yourself with experts in research and portfolio design

Well-researched, disciplined portfolios

Differentiation: Differentiate yourself in a competitive marketplace

Improve close ratio

Opportunity Potential impact

Opportunity is missed by most people because it is dressed in overalls and looks like work.

Thomas Alva EdisonUS inventor (1847 - 1931)


Important information

Nothing in this publication 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. This is a publication of Russell Investments Canada Limited and has been prepared solely for information purposes. It is made available on an “as is” basis. Russell Investments Canada Limited does not make any warranty or representation regarding the information.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

LifePoints and the Russell Investments logo are either trademarks or registered trademarks of Frank Russell Company and are used under license by Russell Investments Canada Limited.

Copyright © Russell Investments Canada Limited 2008

Date of first publication: July 2008

16

www.russell.com/ca

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V107 1 Gaining a competitive advantage Presenter Name Date.

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