V107 1 Gaining a competitive advantage Presenter Name Date

V107 2 FOR ADVISOR USE ONLY Russell: Pioneers in managing managers 1985 Russell Investments Canada opens Today Manages C$215 billion 2005 Named 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 1969 George Russell pioneers objective manager research and strategic advice Frank Russell Securities enters institutional brokerage business Frank Russell opens Frank Russell Company. Representative client list Alcoa AmerisourceBergen Corp. AT&T Inc. Barclays Bank BHP Billiton Bill & 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, Representative client list as of April Clients may contract for a variety of services from Russell Investments. For more information on the selection criteria, please refer to the disclosure slide.

V107 3 FOR ADVISOR USE ONLY Russell Investments Canada evolution Launch of Sovereign PCS staff: 5 AUM: 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

V107 4 FOR ADVISOR USE ONLY What we offer Russell’s value proposition  Intelligent portfolio design  Capital markets insight  Effective practice management Effective practice management Capital markets insight Intelligent portfolio design

V107 5 FOR ADVISOR USE ONLY 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

V107 6 FOR ADVISOR USE ONLY 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 ChallengePotential 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

V107 7 FOR ADVISOR USE ONLY ,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.

V107 8 FOR ADVISOR USE ONLY 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, In 2007, only 1 of the original 83 managers from 2003 had remained in the top 25% every year since 2003.

V107 9 FOR ADVISOR USE ONLY 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 % -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 Universe performance spread 40% 45% 50% -15% Canadian Equity Fixed Income U.S. Equity Overseas Equity -20% -25% Bottom: -13.2%

V FOR ADVISOR USE ONLY MULTI-MANAGER Selecting and combining independent money managers in a way that complements each manager’s investment style. MULTI-STYLE In each asset class, different manager styles are combined to help reduce risk. Each manager specializes in a different style of investing. MULTI-ASSET Each of the major fields of investment is included in a portfolio in proportion to your specific objectives. Canadian Equities Fixed Income Core/Core Plus International Equities Small Cap Market oriented Growth Value MULTI-ASSET US Equity MULTI-STYLE MULTI-MANAGER Manager 1 Manager 2 Manager 3 Our solution: Russell Pools

V FOR ADVISOR USE ONLY Russell mutual fund model strategies HIGHERLOWER HIGHER RISK POTENTIAL RETURN 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.

V FOR ADVISOR USE ONLY 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 Bonds 65% 35% 40% 60% 50% 20% 80% 0% 100% Balanced Income Portfolio Balanced Portfolio Balanced Growth Portfolio Long-Term Growth Portfolio RISK HIGHERLOWER POTENTIAL RETURN 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.

V FOR ADVISOR USE ONLY 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

V FOR ADVISOR USE ONLY Opportunities ChallengePotential 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 and prospects Deeper client relationships Improving asset base Service model: Create and maintain first-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 ratioOpportunity Potential impact Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas Alva Edison US inventor ( )

V FOR ADVISOR USE ONLY 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

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