Investment Update. Multi Asset Growth III September 2018 RUSSELL INVESTMENTS

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1 RUSSELL INVESTMENTS Investment Update Multi Asset Growth III September 208 This report is designed for use by the financial advisor to assist in making a personal recommendation or managing investments for the underlying client.

2 Contents The cycle of market emotions Over the lifetime of an investment you will experience a range of different emotions. Investment success over the long term depends on you working with your adviser to ensure this emotional journey does not lead to decisions that could derail your investment journey. This section illustrates that cycle in terms of historical periods. Market outlook This section looks at the current economic environment and what factors are driving markets. We also describe how we have recently adapted our multi-asset portfolios to adapt to this environment. Fund fact sheet This section describes the und you are invested in, the makeup of the Fund in terms of multimanager investments, and the performance of the portfolio over time. Fund range performance A look at cumulative returns across the five fund range allows you to see the relationship between increasing risk and the resultant returns in rising markets as well as more challenging times. 2

3 The cycle of market emotions Greed and fear throughout the economic cycle For Illustrative Purposes Only OPTIMISM THRILL EUPHORIA COMPLACENCY DENIAL HOPE PANIC CAPITULATION DESPONDENCY SCEPTICISM CAUTION WORRY NOV 97-DEC 972 JAN 97-JAN 974 FEB 974-NOV 974 DEC 974-JUN 975 Inflationary pressures. OPEC Oil crisis crude oil Global recession Share market recovery Productivity prices tripled. Inflation Extended bear market despite recession Market Cycle 0% improvements Rapid corporate earnings -5% Credit squeeze Property company failures -24% 9% growth Introduction of paperless technology AUG 984-AUG 987 SEP 987 OCT 987-NOV 987 DEC 987-DEC 989 Credit Boom Irrational shareholder 987 Global stock market Stock market recovery as Market Cycle 2 6% Strong world economic growth -2% sentiment. Peak of overinflated stock -28% crash. 64% value hunters sought to buy quality stocks cheaply. values vs historical PEs. APR 997-SEP 2000 OCT 2000-SEP 200 MAR 2002-FEB200 MAR 200-MAY 2005 Tech boom. Investor Tech bubble burst Reduced global economic Geopolitical uncertainty Market Cycle 99% exuberance Emergence of new economy sectors -28% September terrorist attacks -22% growth forecasts. Extended bear market. Corporate accounting 52% Refocus on world economic fundamentals Boom in resources in scandals. response to industrialization of China JUN 2005-JUL 2007 AUG 2007-SEP 2008 OCT 2008-FEB 2009 MAR 2009-DEC 20 House prices hit highs Credit crunch. Sub-prime Global financial crisis Global share market Market Cycle 4 28% Credit boom Higher interest rates -7% mortgage crisis. Collateralised debt obligation (CDO) failures -7% European and US recessions. Negative real GDP reported for major 87% recovery Deleveraging, slow economic growth Lehman Brothers declares bankruptcy developed countries in Q Percentage returns refer to the increase/decrease in the S&P 500 index in USD over their period shown

4 Market Outlook Market Review September On the back of robust economic data, the Fed predictably raised its interest rate by 25 bps to 2.25% (the highest level since April 2008) in September. Fed chairman Jay Powell further struck an upbeat tone about US economic performance, raising the probability for a fourth and final hike in December 208. The Bank of England (BoE) kept interest rates unchanged at 0.75% as widely expected. However, the Bank flagged greater uncertainty surrounding Brexit negotiations and heightened risks to global growth from US-China trade tensions. The BoE also upgraded the UK s third quarter growth forecast from 0.4% to 0.5%, partly due to stronger consumer spending. The unemployment rate held steady at 4.0% in the three months to July, in-line with market expectations. Strategist s Outlook For the US, there are no changes to our economic outlook this month. We still score the Absolute economic outlook at a very strong +.5, as current and leading indicators point to a U.S. economy that is still running well above-trend on the back of late cycle fiscal stimulus. Euro-area equities look fairly-valued, have modest cycle support and appear slightly oversold from a contrarian perspective. The positive arguments are that economic surprise is moving from deeply negative to positive, meaning Europe should start to beat scaled back expectations, and that beaten up financials should benefit from strengthening lending growth. We re starting to see early signs that the UK economy is turning a corner, with retail sales in particular surprising on the upside. Combining a likely post-brexit-agreement bounce in GDP growth on the one hand, and a still-significant number of potential tail-risks on the other, a neutral score seems appropriate. Japanese equities are a reasonable hold, but we believe the economic and liquidity tailwinds are not compelling. We move just slightly overweight EM equities. Slightly, because we re still respectful of trade-war escalation and Fed risk and are still needing greater confidence/visibility on USD weakness. 4

5 Oct-2 Dec-2 Feb- Apr- Jun- Aug- Oct- Dec- Feb-4 Apr-4 Jun-4 Aug-4 Oct-4 Dec-4 Feb-5 Apr-5 Jun-5 Aug-5 Oct-5 Dec-5 Feb-6 Apr-6 Jun-6 Aug-6 Oct-6 Dec-6 Feb-7 Apr-7 Jun-7 Aug-7 Oct-7 Dec-7 Feb-8 Apr-8 Jun-8 Aug-8 0 September 208 Multi Asset Growth III The fund targets capital growth over the long term by combining a range of investments such as equities, bonds and commodities which we actively manage in response to our market insights. The fund may invest up to 75% in riskier assets that may provide potential for more aggressive growth, such as equity securities. The Multi Asset Growth Funds Range Portfolio Manager David Vickers Russell Investment s Multi-Asset Strategies Team comprises over 50 experienced professionals, including portfolio managers, researchers, portfolio analysts, and strategists in Russell Investments offices around the globe. This team focuses on total client outcomes, including all major asset classes in their solutions. They identify areas of the market offering attractive valuations and growth potential with a reasonable level of risk and research strategies and managers to exploit these pockets of value. Fund facts Inception Date 2nd October 202 ISIN (SEDOL) GB00(B7W5QJ2)4 Ongoing Charge 0.86% (04/09/208) Minimum Investment,000 initial, 500 subsequent What happened this month Performance Review For illustration only The Fund recorded a positive performance over the quarter, largely driven but the allocation to risk assets. Sanctions and the trade war developments between the US and China, remained on investors minds. However, concerns moderated towards the end of the quarter, especially as promising agreements between the US, Canada and Mexico, in relation to the NAFTA deal, provided some light at the end of the tunnel. Trade tensions between the US and the EU also thawed, whilst Japan and the EU signed a free-trade deal. This helped equity markets rally and tighten credit spreads, whilst strong earnings and robust technicals, underpinned strength in high yield markets with spreads tightening meaningfully. Fund Name Multi Asset Grow th III (C Acc) IMA Mixed Investment 20-60% Shares 40% 5% 0% 25% 20% 5% 0% 5% 0% -5% -0% Month 6 Year 2 Since Inception (PA) 0/09/8-0/09/7 0/09/7-0/09/6 0/09/6-0/09/5 0/09/5-0/09/4 0/09/4-0/09/ The fund is priced at market open (7am) so Fund prices have been moved a day later with benchmarks which price at market close (7pm) Currency GBP Distribution Date 28 February Fund Quarterly Return Inflation (CPI) Fund Cumulative Return Source: Russell Investments. As at 0 September 208. Returns in GBP, net of C Class Fees. Past Performance is not a guide to future performance. 5

6 0 September 208 Multi Asset Growth III (continued) Current Fund Allocation Portfolio Statistics Fund Cash.5% Cash.5% Investment Grade 9.% Government Bonds 8.7% High Yield 2.0% Convertible Debt 4.% Alternative Credit.9% EMD.5% Real Estate 2.2% Infrastructure 0.9% Commodities 2.6% Global Equities 27.5% US.6% UK 8.8% Pan Europe ex UK.5% Japan 0.4% Emerging Equity.2% Fixed Income 7.7% Real Assets 5.7% Equities 55.0% Source: Russell Investments. Data correct as at 0 September 208. Total may not add up to 00% due to rounding. Volatility (Since Inception)* 4.9% Highest One-Year Return.4% Lowest One-Year Return 4.2% Positive One-Year Returns 9.0% Current Yield.4% Fund Size 92.5m Source: Russell Investments, as at 0 September 208. *Volatility describes the extent to which the funds return has fluctuated over time For more information on Russell Investments funds, please contact your financial adviser. Important Information Unless otherwise specified, Russell Investments is the source of all data. All information contained in this material is current at the time of issue and, to the best of our knowledge, accurate. Please note that the value of investment and the income derived from them may go down as well as up and an investor may not receive back the amount originally invested. Any past performance is not a guide to future performance. Potential investors in emerging Markets should be aware that investment in these markets can involve a higher degree of risk. FP Russell Investments ICVC (the "Company") is an investment company with variable capital incorporated in England and Wales under registered number IC and authorised by the Financial Conduct Authority with effect from 22 October FundRock Partners Limited (formerly Fund Partners Limited) is the Authorised Corporate Director (the ACD ) of the FP Russell Investments ICVC and is authorised and regulated by the FCA. Registered office: 8-9 Lovat Lane, London ECR 8DW Russell Investments Limited has been appointed as the investment manager and distributor in respect of the Company. Applications for shares in the Company are subject to the terms and conditions set out in the Prospectus, Key Investor Information Document (KIID), Supplementary Information Document (SID), instrument of incorporation and latest annual and half-yearly long reports of the Company. Investors and potential investors must read the KIID and are also advised to read the remaining documents (and in particular the risk warnings) before making an investment in the Company. Copies are available free of charge on request from the ACD and Russell Investments Limited. This document is issued by Russell Investments Limited, a company incorporated in England and Wales under registered number and with its registered office at: Rex House, 0 Regent Street, London SWY 4PE. Telephone 44 (0) Authorised and regulated by the Financial Conduct Authority, 2 Endeavour Square, London E20 JN. 6

7 Multi Asset Growth Range Performance data as at 0 September 208 This table shows the performance of the Multi Asset Growth Funds for different periods. Cumulative Performance (%) PA (%) Discrete Performance (%) Fund Name Month 6 Year 2 Since launch* 0/09/8-0/09/7 0/09/7-0/09/6 0/09/6-0/09/5 0/09/5-0/09/4 0/09/4-0/09/ Multi Asset Grow th I Multi Asset Grow th II Multi Asset Grow th III Multi Asset Grow th IV Multi Asset Grow th V This table shows the performance of some common asset classes for different periods. Cumulative Performance (%) PA (%) Discrete Performance (%) Common indices Month 6 Year 2 Since launch* 0/09/8-0/09/7 0/09/7-0/09/6 0/09/6-0/09/5 0/09/5-0/09/4 0/09/4-0/09/ Cash Bank of England Base UK Gilts FTSE All Stocks Gilts UK equities FTSE All Share Global equities MSCI World Net GBP Hedged Property FTSE EPRA/NAREIT Global Commodities Bloomberg Commodity Source: Russell Investments as at 0/09/208. Any past performance figures are not necessarily a guide to future performance. 7

8 FOR MORE INFORMATION: Call Russell Investments at +44(0) or IMPORTANT INFORMATION: FP Russell Investments ICVC (the Company ) is an investment company with variable capital incorporated in England and Wales under registered number IC and authorised by the Financial Conduct Authority (the FCA ) with effect from 22 October FundRock Partners Limited (formerly Fund Partners Limited) is the Authorised Corporate Director (the ACD ) of the FP Russell Investments ICVC and is authorised and regulated by the FCA. Registered office: 8-9 Lovat Lane, London ECR 8DW Russell Investments Limited has been appointed as the investment manager and distributor in respect of the Company. Applications for shares in the Company are subject to the terms and conditions set out in the Prospectus, Key Investor Information Document (KIID), Supplementary Information Document (SID), Instrument of Incorporation and latest annual and half-yearly long reports of the Company. Investors and potential investors must read the KIID and are also advised to read the remaining documents (and in particular the risk warnings) before making an investment in the Company. Copies are available free of charge on request from the ACD and Russell Investments Limited. Unless otherwise specified, Russell Investments is the source of all data and, to the best of Russell Investments knowledge, all information is accurate and current at the time of issue, however, this cannot be guaranteed. Please note that the value of investment and the income derived from them may go down as well as up and an investor may not receive back the amount originally invested. In the case of investments for which there is not a recognised market it may be difficult for investors to sell their investment or to obtain reliable information about its value or the extent of the risks to which it is exposed. Any past performance figures are not a guide to future performance. Any reference to returns linked to currencies may increase or decrease as a result of currency fluctuations. Issued by Russell Investments Limited, a company incorporated in England and Wales under registered number and with its registered office at: Rex House, 0 Regent Street, London SWY 4PE. Telephone Authorised and regulated by the Financial Conduct Authority, 2 Endeavour Square, London E20 JN. UKR