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Managing Risk Through Re-Balancing June 25, 2010

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One of the core active strategies for the Russell Sovereign portfolios is the ability to manage risk through rebalancing. A successful investment strategy begins with an asset mix that best fits personal goals and preferences. Such a target asset mix is designed to offer investors the highest risk adjusted returns consistent with their individual risk tolerance.

The attached article is an updated white paper that underscores the benefits of rebalancing. It highlights how rebalancing has added value, both through decreased risk and increased return versus a portfolio that did not have this feature.

The article specifically addresses:

• How rebalancing works
• Why rebalancing is necessary
• The benefits of rebalancing
• When to rebalance
• The costs of rebalancing
.

Rebalancing is one of the key active strategies that Russell implements on their portfolios - a benefit that is often overlooked.

Read: The Russel Update - The Rebalancing Reward