VENTURA INVESTMENT PROGRAM SEARCHING FOR EXCELLENCE ACROSS ALL ASSET CLASSES

THE PROPOSITION INVESTMENT RESEARCH & SELECTION PORTFOLIO CONSTRUCTION INVESTMENT MONITORING PORTFOLIO RE-BALANCING TRANSITION MANAGEMENT (CGT)

Russell Investment Group Pioneered multi-manager investing Largest multi-manager in the world ($2.5 trillion under advice) Largest manager research firm in the world ($40m in 2006) 2,000 institutional clients 40 million individual investors 44 countries Transitioned over $646b between managers in 2006

CLIENTS $10,000,000,000 OF BILL & MELINDA GATES FOUNDATION MONEY 9 OUT OF TOP 10 AUSTRALIAN SUPERANNUATION OUTSOURCING MANDATES AWARDED TO RUSSELL. BHP,BLUESCOPE STEEL,ANZ,IBM,HOLDEN,NEWS LIMITED,CSR,NESTLE, 3M.

DIVERSIFICATION MULTI ASSET (EQUITIES, FIXED INTEREST, PROPERTY) MULTI STYLE (GROWTH, VALUE, STRATEGIC, TACTICAL) MULTI MANAGER (39 OF THE WORLDS BEST PRODUCTS CHOSEN FROM A RESEARCHED UNIVERSE OF 8,000)

Ventura Philosophy Cash Property Shares Bonds Value Market Growth Manager 1 Manager 2 Manager 3 Multi-Asset Multi-Style Multi-Manager

Ventura Process PEOPLE PROCESS PORTFOLIO PERFORMANCE Total manager products monitored by Russell Investment products continually monitored and researched Products with a primary “Buy” rating Russell investment manager products 14,000 4,

Ventura Philosophy MULTI STYLE No single investment style consistently dominates Based on wickets taken in backyard cricket over a rolling 3 year time period – past performance is not an indication of future performance Fast McGrath Fast McGrath Medium Pace Symonds Medium Pace Symonds Spin Warne Spin Warne

Ventura Philosophy MULTI MANAGER

CHASING PERFORMANCE IS A DANGEROUS PASTIME. MORNINGSTAR STUDY 3/5/2007 ONLY 22% OF FUNDS WHICH APPEARED AMONG THE TOP FIVE YEAR PERFORMERS ONE YEAR REPEATED THIS RESULT THE FOLLOWING YEAR. 32% TURNOVER AUS EQUITY MGRS IN 2007

Ventura Philosophy MULTI MANAGER Of the 21 first quartile managers in 2004, two stayed on top each year Ranking from Mercer IDPS Diversified Australian Shares Universe 12 month returns ending 31 January

Monitoring managers DAILY- REVIEW OF PORTFOLIOS VS PERFORMANCE WEEKLY- CONVERSATIONS WITH MANAGERS ON TACTICS, MARKETS. MONTHLY- PERFORMANCE MEASUREMENT QUARTERLY-FORMAL REVIEW OF PERFORMANCE AND PROCESS.

PORTFOLIO RE-BALANCING STRATEGY TO REDUCE TRACKING ERROR AT THE LOWEST COST. FUNDS ARE REBALANCED TO A 3% TOLERANCE LEVEL. REBALANCED AT ASSET CLASS LEVEL AND MANAGER LEVEL.

TERMINATION CHANGE IN STYLE PERFORMANCE BELOW EXPECTATION DEPARTURE OF KEY MEMBERS OF INVESTMENT TEAM (32% left in 2007) TRANSITION MANAGEMENT (TAX ADVANTAGED)

TWO TYPES OF RISK THAT THEIR INVESTMENT WILL LOSE MONEY. THAT THEIR INVESTMENT WONT MAKE ENOUGH MONEY.

NO NASTY SURPRISES VENTURA CAPITAL STABLE 30/70 FIVE YEAR PERFORMANCE 7.56% VENTURA DIVERSIFIED 50 50/50 FIVE YEAR PERFORMANCE 9.42% VENTURA GROWTH 70 70/30 FIVE YEAR PERFORMANCE 11.72%

Comparable returns to peers Mercer Wholesale Australian Shares (Long) Universe Ventura Australian Shares Fund Total return 12mths to 31 Aug 2007 Data Source: Mercer Wholesale Manager Performance Analytics. Returns are gross of fees. 83 long wholesale Australian share funds

Ventura a lower risk solution Mercer Wholesale Australian Shares (Long) Universe Ventura Australian Shares Fund Tracking Error 12mths to 31 Aug 2007 Higher riskLower risk

‘PICK YOUR OWN’ VENTURA AUSTRALIAN SHARES FUND VENTURA AUSTRALIAN OPPORTUNITIES FUND VENTURA INTERNATIONAL SHARES FUND VENTURA GLOBAL OPPORTUNITIES FUND VENTURA HIGH GROWTH FUND

CORE & SATELLITE CORE OF VENTURA PORTFOLIOS USE AN INVESTMENT STRATEGY THAT INCREASES DEGREE OF PREDICTABILITY-NOT ONE WHICH FLUCTUATES WITH MARKET CYCLES. MODEL PORTFOLIO EXAMPLES AVAILABLE.

SUPPORT DEDICATED BDM RUSSELL BDM’S. SEMINAR SUPPORT MONTHLY MARKET BAROMETER INVESTMENT MANAGER OUTLOOK MARKET REVIEWS EDUCATIONAL TOOLS FOR CLIENTS EASY TO USE WEBSITE

BUSINESS OUTCOME REDUCED MANAGER RESEARCH REDUCED ADMINISTRATION REDUCED COMPLIANCE BURDEN PROFESSIONAL ADVICE MORE TIME SPENT ON REVENUE GENERATING ACTIVITY WITH CLIENTS & REFERRAL SOURCES