Presented by Russell Investments at Netwealth's Beyond 2020 event

1. MARCH 2018
Planning
beyond 2020
Netwealth
Jonita Boothman, National Key Account Manager
THIS MATERIAL IS FOR FINANCIAL PROFESSIONAL USE ONLY AND NOT FOR DISTRIBUTION TO CURRENT OR POTENTIAL INVESTORS.

2. Global adviser
insights

3. Russell Investments Academy since 1998
FINANCIAL PROFESSIONAL USE ONLY
4,700
ADVISER
BUSINESSES
ANALYSED
500
COURSES
DELIVERED
4
COUNTRIES

4. Russell Investments’ global practice management
perspective
FINANCIAL PROFESSIONAL USE ONLY

5. Four fatal adviser assumptions
“I’m a great adviser,
so I’m a great
business owner”
“What got me here
will get me to the
next level”
“But my business is
different…”
“Change is easy.”
Source: Photos from Foter.com

6. Four characteristics of winning advisers
Your strength is in
your team.
Be an expert in your
local economy.
Focus on efficiency.
Measure your
success.
Source: Photos from Foter.com

7. The value of an
adviser

8. FINANCIAL PROFESSIONAL USE ONLY
Investor Behaviour
BEHAVIOUR
GAP

9. Investors are influenced…
Egotistically – I can do it all myself
Socially – 24/7 media, friends,
co-workers help shape decisions
Emotionally – Hope and fear
influences irrational decisions
leading to buying high & selling low
FINANCIAL PROFESSIONAL USE ONLY

10. Source: BNY Mellon Analytical Services, Investment Company Institute, Russell Investments. Based on annualised returns from January 1, 1984 to December 31, 2017. Return
was calculated by deriving the internal rate of return (IRR) based on ICI monthly mutual fund net new cash flow data which was compared to the rate of return if invested in the
Russell 3000 Index and held without alteration from January 1, 1984 to December 31, 2017. Indexes and/or benchmarks are unmanaged and cannot be invested in directly.
Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment
*Average US equity investor is based on general cash-flow trends as measured by the ICI compared to the market's overall performance.US mutual fund data was used as robust
global or Australian historical data is not currently available.
FINANCIAL PROFESSIONAL USE ONLY
Recent proof of a “buy high and sell low” mentality
INVESTMENT PATTERNS AT THE WRONG TIMES
Sep-17
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
-$80
-$60
-$40
-$20
$0
$20
$40
$60 Dec-07
Mar-09
Jun-10
Sep-11
Dec-12
Mar-14
Jun-15
Sep-16
Dec-17
GROWTHOF$100
NETINFLOW($USBILLIONS)
Monthly US mutual
fund cash flows*
Russell 3000® Index
(Growth of $100)

11. (1) BNY Mellon Analytical Services, Russell 3000® Index annualised return from January 1, 1984 to December 31, 2017.
(2) Russell Investments & Investment Company Institute (ICI). Return was calculated by deriving the internal rate of return (IRR) based on ICI monthly fund flow data which was
compared to the rate of return if invested in the Russell 3000® Index and held without alteration from January 1, 1984 to December 31, 2017. This seeks to illustrate how regularly
increasing or decreasing equity exposure based on the current market trends can sacrifice even market like returns.
Indexes and/or benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not
indicative of any specific investment.
The high cost of investor behaviour
1984-2017
FINANCIAL PROFESSIONAL USE ONLY
The above chart is for illustrative purposes only.

12. FINANCIAL PROFESSIONAL USE ONLY
A Strategy for Taxes

13. FINANCIAL PROFESSIONAL USE ONLY
Value of time

14. Top 20%
320
CLIENTS
$560k
64
$800k
REVENUE
$560,000
64 clients
$8,750 rev/HH
$8,750 rev/HH
$400/hour
~22 hours
A typical example
70%
These numbers represent a real book of business consisting of 320 clients and $800,000 of revenue. This example was selected since the allocation of revenue across the
client base is representative of a significant number of clients that Russell Investments has worked with in the context of RPM Advisor Coaching. Your numbers may differ
from these. This information may not be representative of the experience of other clients and is no guarantee of future performance or success.
FINANCIAL PROFESSIONAL USE ONLY
The information contained in this slide is an example and figures shown are for illustrative purposes only

15. ANNUAL GROSS REVENUE
2,000 hours
$800,000
= $400/hour
What is your time worth?
FINANCIAL PROFESSIONAL USE ONLY
The information contained in this slide is an example and figures shown are for illustrative purposes only

16. FINANCIAL PROFESSIONAL USE ONLY
A typical book of businessCLIENTREVENUE
HIGHLOW
HIGHLOW
TOO LITTLE
TOO MUCH
EFFORT TO SERVE

17. FINANCIAL PROFESSIONAL USE ONLY
Which side is problematic?CLIENTREVENUE
HIGHLOW
HIGHLOW
EFFORT TO SERVE
› Unprofitable
› Over-served
› Under-charged
› Financed by others
› Profitable
› Over-charged
› Under-served
› Financing others
› At Risk!

18. FINANCIAL PROFESSIONAL USE ONLY
Deliver the right valued experience
SOURCE: B. Joseph Pine and James Gilmore, The Experience Economy: Work is Theatre and Every Business is a Stage
COMPETITIVE
POSITION
PRICING PREMUIMMARKET
DIFFERENTIATEDUNDIFFERENTIATED
Goods Products Services Experience
Stocks/Bonds
Managed
Funds
Advice/
Planning
Wealth
Management

19. FINANCIAL PROFESSIONAL USE ONLY
The art of segmentationREVENUE
HIGHLOW
HIGHLOW
EFFORT TO SERVE
$5,000
$1,000
Create client advocates
Deliver a highly personalised,
goal-oriented wealth management
experience that includes
customised models.
Efficiency and leverage
Delivered via planning and investment outsourcing
combined with a proactive One-to-Many service model.
Move-up or out
Establish a minimum and work to move clients up or out.
A
B
C
These revenue amounts are used for illustrative purposes only. Your experience may differ.

20. FINANCIAL PROFESSIONAL USE ONLY
QUARTERLY ROADMAP FOR SAMPLE CLIENT
Source: Sample US Bancorp Roadmap
January – March, 2018
Scheduled Activities
 Data Gathering
 Financial Goals
 Risk Tolerance
 Long-range Plan
 ED: Diversification
April – June, 2018
Scheduled Activities
1. Goals Review
2. Road Map Review
3. Investment Implementation
4. Life Insurance
5. Estate Plans Updated
6. ED: Capital Markets
July – September, 2018
Scheduled Activities
 Goals Review
 Road Map Review
 Investment Review
 Insurance Implementation
 Estate Plans Completed
 ED: Long-term View of the
Market
October – December, 2018
Scheduled Activities
 Review Existing Plans
 Road Map Review
 Investment Review
 Will and Trust Planning
 Client Satisfaction Review
 ED: Legacy Planning
January – March, 2019
Scheduled Activities
 Goals and Situations Review
 Roadmap Review
 Investment Review
 Education Planning
 Legacy Planning
 ED: U.S. Equities
April – June, 2019
Scheduled Activities
 Goals and Situations Review
 Roadmap Review
 Investment Review
 Disability Insurance
 ED: Fixed Income
July – September, 2019
Scheduled Activities
 Goals and Situations Review
 Roadmap Review
 Investment Review
 Long Term Care Insurance
 ED: International Investing
October – December, 2019
Scheduled Activities
 Goals and Situations Review
 Roadmap Review
 Investment Review
 Tax Strategy Review
 ED: Legacy Planning

22. Disruptions or
opportunities?

23. Demographic shifts and regulatory change
Source: World Bank World Databank, databank.worldbank.org, pulled Sept. 19, 2016. Retirees is defined as the Population, age 65 and above, as of 2014 estimates. Workers is
defined as the Total Labor Force as of 2013 estimates. Total Labor Force is defined as residents age 15 and above who are economically active, according to definition by
International Labour Organization.
FOR FINANCIAL PROFESSIONAL USE ONLY

24. Technology: friend or foe?
Source: Photos from Foter.com, Google images

25. Move to focus on real-world client outcomes
Source: Chart 1 - Russell Investments; Chart 2 - “Life after work” study by HSBC, J.P. Morgan Asset management. Figures represent the expected portion of retirement
spending that will not be covered by retirement savings based on survey data. Guide to the Markets – UK. Data as at 31 December 2015.

26. An outcome-oriented investing approach to portfolio selection
THE PORTFOLIO IS ALIGNED WITH THE CLIENTS’ GOALS, CIRCUMSTANCES
AND PREFERENCES
Source: Russell Investments for illustrative purposes only

27. Important information
Issued by Russell Investment Management Ltd ABN 53 068 338 974, AFS Licence 247185 (RIM). This
document has been prepared for financial professionals only. This document provides general
information only and has not been prepared having regard to your objectives, financial situation or
needs. Before making an investment decision, you need to consider whether this information is
appropriate to your objectives, financial situation or needs. This information has been compiled from
sources considered to be reliable, but is not guaranteed. This document is not intended to be a
complete statement or summary.
Frank Russell Company is the owner of the Russell Indexes and their associated trademarks, which are
used under license from Frank Russell Company. The members of the Russell Investments group of
companies, including Russell Investment Group Limited are not affiliated in any manner with Frank
Russell Company or any entity operating under the “FTSE RUSSELL” brand. Frank Russell Company
does not guarantee the accuracy and/or completeness of the Indexes or any data included
therein.
Copyright © 2018 Russell Investments. All rights reserved. This material is proprietary and may not be
reproduced, transferred, or distributed in any form without prior written permission from Russell
Investments.