CONSISTENCY Russell Investments Model Portfolios The consistency you need to plan ahead russellinvestments.com
The consistency you need to plan ahead. Life can be unpredictable, but to plan for the future, you ll want as much certainty as possible. That s why at Russell Investments, we produce ten year forecasts that predict the performance of our Model Portfolios with 95% confidence. We know that you need investments solutions that you can trust to perform in line with your expectations. And in 7 rolling annual periods since inception in, across all Model Portfolios, 95% of the time they have delivered returns as predicted or better to 1 standard deviation. 9% have delivered with less risk than forecasted. Despite the market turbulence we have seen in recent years, this demonstrates a reassuring level of consistency. Over the long-term, staying invested in a well-diversified multi-asset portfolio can reap the rewards that you need to enjoy the future you have planned. As with all investments, remember that your capital is at risk and any forecast, projection or target is indicative only and not guaranteed in any way. Russell Investments in numbers Data as at December 1. 95% Delivered as predicted or better to 1 standard deviation* % Delivered within standard deviations* 5% Delivered higher returns than expected 9% Delivered with less risk than forecast 7 Performances Measured *Standard deviation is applied to the annual rate of return of an investment to measure the investment s volatility, it is a statistical measurement that illustrates historical volatility. For example, a volatile stock has a high standard deviation, while the deviation of a stable stock is lower. A large dispersion indicates how much the return on the fund is deviating from the expected normal returns. Russell Investments Model Portfolio Performance These charts show the performance of the Model Portfolios since inception measured against our forecasted returns. Although we recommend staying invested over the long term, performance is shown in rolling twelve month periods to be in keeping with the review meeting cycle. SECURE PORTFOLIO* RETURN:.1% RISK:.% 1 1 Modelled Annual - s.d.. + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. / Russell investments model portfolios / Russell Investments
CAUTIOUS PORTFOLIO* 1 RETURN:.5% RISK: 5.% - s.d Modelled Annual + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. CONSERVATIVE PORTFOLIO* RETURN:.3% RISK:.3% 1 - s.d Modelled Annual + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. MODERATE PORTFOLIO* RETURN: 5.% RISK:.3% Modelled Annual - s.d + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. Risk and return figures are potential returns calculated by Russell Investments using our own forecasts for capital markets over the coming years. Russell Investments / Russell investments model portfolios / 3
Using the BALANCED PORTFOLIO as an example, identifying individual time periods allows us to see that poor performance in one period will frequently be followed by strong performance as recovery occurs. This demonstrates the value of staying invested through turbulent times. For example, performance was down 3% in the rolling period ending May, but by the same period 1 year on, returns were up to 1%. BALANCED PORTFOLIO* RETURN: 5.5% RISK: 9.% - s.d Modelled Annual + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. PROGRESSIVE PORTFOLIO* RETURN: 5.5% RISK: 9.% - s.d Modelled Annual + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. ADVENTUROUS PORTFOLIO* RETURN:.% RISK:.% Modelled Annual - s.d + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. Risk and return figures are potential returns calculated by Russell Investments using our own forecasts for capital markets over the coming years. 3 / Russell investments model portfolios / Russell Investments
GROWTH PORTFOLIO* RETURN:.% RISK: 13.3% Modelled Annual - s.d + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. AGGRESSIVE PORTFOLIO* RETURN:.9% RISK:.% Modelled Annual - s.d + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. AGGRESSIVE PLUS PORTFOLIO* Modelled Annual RETURN: 7.3% RISK: 1.3% - s.d + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. RETURN: % -5. -15. -5. 5. RISK:.% 15. 5. 35. MULTI ASSET GROWTH FUND III* Modelled Annual - s.d + s.d. -5-3 -1-19 -17-15 -13-11 -9-7 -5-3 -1 1 3 5 7 9 11 13 15 17 19 1 3 5 7 9 31 33 35 37 39 Annual Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. Source: Morningstar and Russell Investments as at December 1. All performance numbers are net of fees. Risk and return figures are potential returns calculated by Russell Investments using our own forecasts for capital markets over the coming years. Russell Investments / Russell investments model portfolios /
For more information 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. Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice. 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 figures are not a guide to future performance. Standard deviation is applied to the annual rate of return of an investment to measure the investment s volatility, it is a statistical measurement that illustrates historical volatility. For example, a volatile stock has a high standard deviation, while the deviation of a stable stock is lower. A large dispersion indicates how much the return on the fund is deviating from the expected normal returns. Our Capital Market assumptions are based on historical data. We use all historical data available, which goes back 15 to + years depending on the asset class. This time range covers a spectrum of market scenarios (in both good and bad markets). Issued by Russell Investments Limited, a company incorporated in England and Wales under registered number 3 and with its registered office at: Rex House, Regent Street, London SW1Y PE. Telephone 7. Authorised and regulated by the FCA, Endeavour Square, London, E 1JN MCR-79 17 M5 Expires: January russellinvestments.com