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The list below includes the funds' money managers whose strategies have been allocated assets. Russell Investments Management, LLC (RIM) manages the funds's liquidity reserves and may manage assets to affect the fund's investments strategies and/or to actively manage the fund's overall exposures to seek to achieve the desired risk/return profile for the funds. This may constitute 5% or more of fund assets at any given time.
| Asset Class | % of Model |
|---|---|
Fixed Income | 61.00% |
Equity | 35.00% |
Alternative | 4.00% |
Allocation disclosures
Money managers listed are current as of 12/17/2024 and include only money managers whose strategies have been allocated assets by RIM. Subject to the Fund’s Board approval, Russell Investment Management, LLC (RIM) has the right to engage or terminate a money manager at any time and without a shareholder vote, based on an exemptive order from the Securities and Exchange Commission. Investments in the Funds are not deposits with or other liabilities of any of the money managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds. The money managers do not guarantee the performance of any fund or any particular rate of return.
To review model and underlying fund performance, please contact your financial advisor.
Performance information is historical and does not guarantee future results. Investment return and principal value will fluctuate so that redeemed shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current to the most recent month-end performance for Russell Investment Company mutual funds is available by visiting: https://russellinvestments.com/us/fund-center/performance-pricing.
*Underlying Fund Tax Disclosures:
Pre-liquidation after-tax returns:
- Pre-liquidation after-tax returns represent returns after taxes on fund distributions. Returns After Taxes on distributions may be the same as pre-tax returns for the same period if there were no distributions for that period.
Post-liquidation after-tax returns:
- Post-liquidation after-tax returns represent returns after taxes on distributions and realized taxable gain or loss from sale of Fund shares. Returns After Taxes on distributions may be the same as pre-tax returns for the same period if there were no distributions for that period.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and the 3.8% net investment income tax, and do not reflect the impact of state and local taxes. If the Fund has realized capital losses, the return after taxes on distributions and sale of fund shares may be higher than the return before taxes and the return after taxes on distributions. The calculation of return after taxes on distributions and sale of fund shares assumes that a shareholder has sufficient capital gains of the same character to offset any capital losses on a sale of fund shares and that the shareholder may therefore deduct the entire capital loss. After-tax returns depend on an investor's tax situation and may differ from those shown. Post-liquidation returns may be adversely impacted by an investor's deferred tax liabilities. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
The RIC Funds annual tax adjustments have been finalized as of 02/20/2025 and the Funds’ after-tax returns have been updated accordingly to reflect the income and capital gains distributions issued in 2024.
Shareholder Fees and Annual Fund Operating Expenses are as of the Funds’ most recent Prospectus (dated 3/1/2025), including any supplements thereto.
⫲The Net Annual Operating Expense Ratio may be less than the Total Operating Expense Ratio and represents the actual expenses expected to be borne by shareholders after application of: (a) a contractual transfer agency fee or advisory fee waiver through February 28, 2026; (b) a contractual cap and reimbursement on expenses through February 28, 2026. These contractual agreements may not be terminated during the relevant periods except at the Board of Trustee's discretion. Details of these agreements are in the current prospectus.
Tax-efficiency is not a stated objective of the Strategic Bond Fund.
Income from funds managed for tax efficiency may be subject to the alternative minimum tax and/or any applicable state and local taxes.
Asset class returns
As of 03/31/2025
ASSET CLASS | LATEST QUARTER | YEAR TO DATE | 1 YR | 3 YRS | 5 YRS | 10 YRS | |
|---|---|---|---|---|---|---|---|
U.S. Equity | -4.72% | -4.72% | 7.22% | 8.22% | 18.18% | 11.80% | |
Non-U.S. Developed Equity | 6.86% | 6.86% | 4.88% | 6.05% | 11.77% | 5.40% | |
Emerging Markets Equity | 2.93% | 2.93% | 8.09% | 1.44% | 7.94% | 3.71% | |
Global Infrastructure | 4.41% | 4.41% | 17.76% | 5.15% | 12.87% | 5.55% | |
Commodities | 8.88% | 8.88% | 12.28% | -0.77% | 14.51% | 2.77% | |
Global Real Estate | 1.59% | 1.59% | 3.90% | -4.28% | 6.22% | 1.99% | |
U.S. Bonds | 2.78% | 2.78% | 4.88% | 0.52% | -0.40% | 1.46% |
Market commentary disclosures
Performance information is historical and does not guarantee future results.
Source: Morningstar Direct.
Asset Class Definitions:
Equity: U.S. Equity = Russell 3000® Index; U.S. Large Cap Equity = Russell 1000® Index; U.S. Small Cap Equity = Russell 2000® Index; Global Equity = MSCI World Net Index; Non-U.S. Developed Equity = MSCI EAFE Net Index; Emerging Markets Equity = MSCI Emerging Markets Net Index
Fixed Income: Emerging Markets Debt = JPM EMBI Plus Bond Index; Global High Yield = ICE BofA Global High Yield (Hedged) Index; U.S. Bonds = Bloomberg U.S. Aggregate Bond Index; Municipal Bonds = Bloomberg 1-15 Year Municipal Bond (1-17 Index); High-Yield Municipal Bonds = Bloomberg High Yield Municipal Bond Index; Cash = Citigroup 3-Month U.S. Treasury Bill Index
Alternative: Global Real Estate = FTSE EPRA Nareit Developed Net Index; Global Infrastructure = S&P Global Infrastructure Net Index; Global Natural Resources = S&P Global Natural Resources Net Index; Commodities = Bloomberg Commodity TR Index
Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Indexes are unmanaged and cannot be invested in directly.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.The Russell 1000® Value Index measures the performance of those Russell 1000® Index securities with lower price-to-book ratios and lower forecasted growth values, representative of U.S. Securities exhibiting value characteristics.
The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 2000® Index is an index of 2,000 issues representative of the U.S. small capitalization securities market.
The Russell 1000® Index is an index of 1,000 issues representative of the U.S. large capitalization securities market.
The MSCI EAFE Index is an equity index which captures large- and mid-cap representation across 21 Developed Markets countries around the world, excluding the U.S. and Canada. With 902 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Developed Markets countries in the MSCI EAFE Index include: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.
The MSCI Emerging Markets Index is a float adjusted market capitalization index that consists of indices in 21 emerging economies.
The Bloomberg 1-15 Year Municipal Blend (1-17) Index is an index, with income reinvested, representative of municipal bonds with maturities ranging from 1-15 years. The FTSE EPRA Nareit Developed Real Estate Index is a global market capitalization weighted index composed of listed real estate securities in the North American, European and Asian real estate markets.
The Bloomberg Commodity Index Total Return is a broadly diversified collateralized commodities futures index comprised of futures contracts on 22 physical commodities.
The MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries, including Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the U.S. With 1,586 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
The JPM EMBI Plus Bond Index tracks total returns for traded external debt instruments (external meaning foreign currency denominated fixed income) in the emerging markets.
The ICE BofA Global High Yield Index tracks the performance of USD, CAD, GBP and EUR denominated below investment grade corporate debt publicly issued in the major domestic or eurobond markets.
The Bloomberg U.S. Aggregate Bond Index is an index, with income reinvested, generally representative of intermediate-term government bonds, investment-grade corporate debt securities and mortgage-backed securities.
Bloomberg High Yield Municipal Bond Index: Measures the non-investment grade and non-rated U.S. dollar-denominated, fixed-rate, tax exempt bond market within the 50 United States and four other qualifying regions (Washington D.C., Puerto Rico, Guam and the Virgin Islands).
The Citigroup 3-Month U.S. Treasury Bill Index measures monthly return equivalents of yield averages that are not marked to market. The Three-Month Treasury Bill Indexes consist of the last three three-month Treasury bill issues.
The S&P Global Infrastructure Index is designed to track 75 companies from around the world chosen to represent the listed infrastructure industry while maintaining liquidity and tradability. To create diversified exposure, the index includes three distinct infrastructure clusters: energy, transportation, and utilities.
S&P Global Natural Resources Index: Includes 90 of the largest publicly traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across three primary commodity-related sectors: agribusiness, energy, and metals & mining.
RIFIS-26297
IMPORTANT RISK DISCLOSURES
Mutual fund investing involves risk, principal loss is possible.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Model Strategies are allocations of Russell Investment Company funds that are not managed and cannot be invested in directly. Depending upon individual investment objectives, you and your financial advisor may want to combine funds that differ from the illustrated combinations. Model Strategies are exposed to the specific risks of the funds directly proportionate to their fund allocation. The funds comprising the strategies and the allocations to those funds have changed over time and may change in the future.
Alternative strategies may be subject to risks related to equity securities; fixed income securities; non-U.S. and emerging markets securities; currency trading, which may involve instruments that have volatile prices, are illiquid or create economic leverage; commodity investments; illiquid securities; and derivatives including futures, options, forwards and swaps.
Investments in infrastructure-related companies have greater exposure to adverse economic, financial, regulatory, and political risks, including governmental regulations. Global securities may be significantly affected by political or economic conditions and regulatory requirements in a particular country.
Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks. Investments in international markets can involve risks of currency fluctuation, political and economic instability, different accounting standards, and foreign taxation.
Bond investors should carefully consider risks such as interest rate, credit, default and duration risks. An increase in volatility and default risk are inherent in portfolios that invest in high-yield (“junk”) bonds or mortgage-backed securities, with exposure to sub-prime mortgages. Generally, when interest rates rise, prices of fixed income securities fall. Interest rates in the United States are at, or near, historic lows, which may increase a Fund’s exposure to risks associated with rising rates. Investment in international and emerging market debt is subject to currency fluctuations and to economic and political risks.
Certain underlying Funds within the model strategies may invest in derivatives, including futures, options, forwards and swaps. Investments in derivatives may cause the Fund’s losses to be greater than if it invests only in conventional securities and can cause the Fund to be more volatile. Derivatives involve risks different from, or possibly greater than, the risks associated with other investments. The Fund’s use of derivatives may cause the Fund’s investment returns to be impacted by the performance of securities the Fund does not own and result in the Fund’s total investment exposure exceeding the value of its portfolio.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus containing this and other important information can be obtained by calling 800-787-7354 or by visiting the prospectus and reports page to download one. Please read the prospectus carefully before investing.
GENERAL DISCLOSURES
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Strategic asset allocation and diversification do not assure a profit or protect against loss in declining markets.
Not a Deposit • Not FDIC Insured • May Lose Value • Not Bank Guaranteed • Not Insured by any Federal Government Agency
Russell Investment Company Mutual Funds are distributed by Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments.
For information on the Financial Industry Regulatory Authority, go to www.finra.org.
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Important information regarding Tax-Managed Model Strategies
For all Russell Investment Company Funds, a portion of the income and capital gains distributions made by Russell Investment Management, LLC (RIM) funds throughout a calendar year may be subject to special tax treatment at calendar year end. Such treatments may reduce taxes shareholders may experience; The after tax returns for the current calendar year are recalculated at the year end to account for this reduction and may become slightly higher than currently reported. For previous calendar years, tax reductions due to such treatments are reflected in the after tax returns of the funds.
Model strategies are not managed and cannot be invested in directly. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Strategic asset allocation and diversification do not assure profit or protect against loss in declining markets.
Model Strategy returns represent past performance and are not indicative of any specific investment. Model Strategy returns are calculated by obtaining the weighted monthly returns of the strategy component funds from the prior month-end to the current month-end. These weighted returns are then added to the prior month's return history and annualized. Total performance is based upon the actual fund target allocations at the beginning of each month during the periods shown, which may differ from the current allocation. Historical percentage weightings are not adjusted to reflect current weightings, but are used to capture the actual weightings during the return periods shown.
Performance is based on full investment in the model strategy. You and your financial professional may implement your investment in a different manner than the above-referenced strategy. For example, if you allocate up to 2% of your portfolio in a money market mutual fund to facilitate the payment of advisory fees and charges, your actual performance may differ. Please consult your financial professional for details on your particular investment implementation including advisory fees, charges and expenses.
Performance is based upon the actual mix of underlying funds recommended at each specific point in time, which may differ from the current mix. Detail of changes is available upon request. The Model Strategy returns quoted represent past performance, and should not be viewed as a representation of future investment performance of the stock market.
Rebalancing of portfolios may create tax consequences on the taxable portion.
For purchases over a certain minimum investment amount, other Russell Investment Company mutual funds with similar investment objectives, strategies and risks, but generally lower annual fund operating expenses, may be available. Because these other funds are different than the funds in the Conservative, Balanced, Moderate, Growth and Equity Growth Model Strategies, a transfer between them may be a taxable event. For more information on these other funds, Tax-Managed Model Strategies or underlying Russell Investment Company Funds, contact your investment professional or plan administrator for assistance.
First Used: August 2015
RFS 15593-TMMS