1. Applying Multi Manager to Islamic Investments Shamindra Perera CFA, Managing Director, Russell Investments 28 November 2007

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3. 3 Why Multi-Manager? No-one is Best at Everything Source: Athens 2004 Olympic Games 0 5 10 15 20 25 30 35 40 45 % Outperformance by Individual Event Champion Olympic Champion 8.59m9.85s 21.16m 2.36m 44.00s 12.91s 69.89m 5.95m 86.50m3:34.18 Decathlon Champion 7.84m 10.85s 16.36m2.12m48.36s14.05s48.72m70.52m 4:40.01 Event 100m Long Jump Shot Put High Jump 400m 110m Hurdles Discus Pole Vault Javelin 1500m 5.00m

4. 4 Applying Russell Multi-Manager to Shariah Compliant Investing Guiding principles  Hire managers from the entire universe, not only Shariah compliant managers  Managers focus on managing assets, not Shariah compliance  Apply a single high standard of Shariah investment across all managers In practice  Managers researched and hired by Russell, Global Leader in Multi Manager Investing. Managers replaced when necessary.  Russell’s Shariah Board formulate and approve Shariah guidelines  Russell provides managers with a list of investable stocks, not Shariah guidelines

5. 5 Shariah Compliance Board Members  Sheikh Dr. Abdullah Al Mutlaq (Saudi Arabia) Chairman  Sheikh Dr. Mohamed Ali Elgari (Saudi Arabia)  Dr. Mohammed Daud Bakar (Malaysia)  Sheikh Esam Mohammed Ishaq (Bahrain) Single process for all managers  Board approves investment guidelines  Board approves approve purification method  Broad universe of stocks is screened for compliance  Managers select securities from a single list  Manager portfolios continuously monitored for compliance  Board certifies Shariah compliance

6. 6 Russell Shariah World Equity Fund Manager Process Characteristics Source: Russell Investments As at: 31 st March 2007 TECHNICAL: exploits opportunities created by behavioural anomalies in the market FUNDAMENTAL: capitalises on superior analysis of companies and securities LONG TERM: security decisions usually assessed over time horizons longer than 2 years SHORT TERM: security decisions reviewed over time horizons less than 2 years JUDGEMENTAL: flexible or pragmatic processes that rely on knowledge or experience of individuals or teams SYSTEMATIC: security selections driven by a systematic, usually quantitative, assessment process with limited scope for variation in implementation VALUE: relies on analysis of valuation metrics such as price/book GROWTH: depends on superior forecasting of earnings or cashflow growth TOP DOWN: forecasts macroeconomic trends expected to drive asset class, country, sector and security returns BOTTOM UP: focuses on individual securities, with less sensitivity to macro themes and asset class, country or sector returns

7. 7 Russell Shariah Emerging Markets Equity Fund Manager Process Characteristics Source: Russell Investments Correct as at 31 st March, 2007 TECHNICAL: exploits opportunities created by behavioural anomalies in the market FUNDAMENTAL: capitalises on superior analysis of companies and securities LONG TERM: security decisions usually assessed over time horizons longer than 2 years SHORT TERM: security decisions reviewed over time horizons less than 2 years JUDGEMENTAL: flexible or pragmatic processes that rely on knowledge or experience of individuals or teams SYSTEMATIC: security selections driven by a systematic, usually quantitative, assessment process with limited scope for variation in implementation VALUE: relies on analysis of valuation metrics such as price/book GROWTH: depends on superior forecasting of earnings or cashflow growth TOP DOWN: forecasts macroeconomic trends expected to drive asset class, country, sector and security returns BOTTOM UP: focuses on individual securities, with less sensitivity to macro themes and asset class, country or sector returns

8. 8 Russell Investments Limited Disclaimer This material does not constitute an offer or invitation: to anyone in any jurisdiction to invest in any Russell product or use any Russell services where such offer or invitation is not lawful, or in which the person making such offer or invitation is not qualified to do so; or to anyone to whom it is unlawful to make such offer or invitation, and has not been prepared in connection with any such offer or invitation. This material is not intended for distribution to retail clients. Unless otherwise specified, Russell is the source of all data. Unless otherwise specified, all information contained in this material is current at the time of issue and to the best of our knowledge all information presented is accurate, however this cannot be guaranteed. Any opinions expressed are those of Russell Investments Limited and not a statement of fact and they do not constitute investment advice and are subject to change. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. There is no guarantee that any target or projected figures will be met and this information is for illustrative purposes only. Any simulated figures and estimated figures are for illustrative purposes only. Any past performance figures are not necessarily a guide to future performance. Any reference to returns linked to currencies may increase or decrease as a result of currency fluctuations. Any references to tax treatments depend on the circumstances of the individual client and may be subject to change in the future. Copyright © 2007 Russell Investments Limited Issued by Russell Investments Limited. Company No. 02086230. Registered in England and Wales with registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone 020 7024 6000. Authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

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