What is multi-manager investing?

• Diversifying among asset classes is one of the most prudent approaches to managing risk
• Investment styles move in and out of favour with the market
• Even the best investment managers do not stay on top for extended periods of time
• As our investment manager, Russell's strategy is designed to help you reduce risk and build long-term wealth for your clients
• To develop long-term financial security

Multi-Asset

• As part of a diversified portfolio, each of the major sectors of investment can be included in a portfolio, in proportion to your clients' long term investment objectives and risk tolerance.

Multi-Style

• When your client invests in one Ventura portfolio, their investment has representative managers from each style category. Each portfolio is structured to ensure that a style-neutral mix of managers is maintained. This blending of styles can help to reduce risk and work toward more consistent returns, no matter which style is in favour at the time.

Multi-Manager

• Within manager styles, Ventura portfolios use a manager-of-managers approach, selecting and monitoring some of the world's most talented money managers.

Of the 24 upper quartile managers in 2006, only two of them stayed in the upper quartile over the next 2 years, and none over the next 3 years. We've obviously seen some significant volatility over the past few years but this clearly illustrates just how hard it is for a single manager to consistently outperform over the long-term.

History has shown that not all fund managers are able to out-perform the market on an ongoing basis, and during different market conditions. To achieve the most consistent returns we need to look for a range of skills that can be called on to match the situation.

Different market conditions demand different things of the managers. Hence a multi-manager approach – picking managers with the skills and ability to perform during a certain event or under certain conditions – and blending these skills together reduces risk and helps produce a more consistent performance.

By selecting a multi-manager fund you are selecting the best investment managers across each asset class or style, all via a single investment. This means investors can invest with confidence, knowing that should one investment manager, asset class or style turn sour, the impact on their overall investment returns is minimised.

Ventura's approach is fiercely independent. Its outsourced-model, based on appointing external investment managers, allows it to be completely objective when providing oversight of the Funds. This additional layer of review and monitoring of our investment managers provides Ventura's investors with more reason to feel confident in their choice of investments.

Russell Investments is a global company with institutional heritage, offering the following benefits to investors:

• Full suite of investment solutions
• Manager & capital markets research
• Clear accountabilities for manager selection
• Leading risk & compliance oversight
• Innovative portfolios to meet clients' needs
• Depth & breadth of investment capabilities
• In-house implementation and transition services.

• Believe that no single investment style is superior
• Seek to reduce style biases through diversification
• Believe that diversifying across investment processes provides a deeper level of risk control
• Focus on security selection to drive excess returns
• Have a disciplined, long term approach to investing
• Support active management in most asset classes

Style controlled portfolios ensure consistency of outcomes

• Focus on stock selection as primary driver of returns
• In Australia mild style biases can add value over the longer term

Diversification is key to achieving superior risk adjusted returns

• Across styles, processes and team structures
• Managers' contribution to the portfolio is more than just risk

Specialisation in market segments can create opportunities

We utilise segment specialists (e.g. Large Cap and Small Cap mandates) which, combined with Ventura's additional layer of independent, objective oversight, ensures that available opportunities for maximum return with minimal risk are fully explored and implemented wherever possible.

(Source: Russell Investment and Ventura)