Front-end sales charges

The funds offer multiple classes of shares. Each class of shares has its own sales charge and expense structure, which enables you to choose the class of shares (and pricing) that best meets your specific needs and circumstances.

You should consult with your Financial Intermediary about the comparative pricing and features of each class, the services available for shareholders in each class, the compensation that will be received by the Financial Intermediary in connection with each class and other factors that may be relevant to your decision as to which class of shares to buy.

Front-end sales charge Deferred sales charge Annual 12b-1 fees Annual shareholder service fees
Class A shares Up to 3.75% for fixed income funds; up to 5.75% for other funds and LifePoints Funds; reduced, waived or deferred for large purchases and certain investors 1.00% on redemption of class A Shares made within 12 months of a purchase
on which no front-end sales charge was paid and your Financial Intermediary was paid a commission by the Funds' Distributor
0.25% of average daily assets None
Class A1 shares Up to 2.50% for all Funds None 0.25% of average daily assets None
Class A2 shares** Up to 3.50% for all Funds; reduced, waived or deferred for large purchases and certain investors 1.00% on redemptions of Class A2 Shares made within 12 months of a purchase on which no front-end sales charge was paid and your Financial Intermediary was paid a commission by the Funds’ Distributor 0.25% of average daily assets None
Class A3 shares** 3.00% for all Funds None 0.25% of average daily assets None
Class C shares None None 0.75% of average daily assets 0.25% of average daily assets
Class C1 shares** None 1.00% on redemptions of Class C1 Shares made within 12 months of purchase 1.00% of average daily assets (including shareholder services fees of 0.25%)
Class E shares None None None 0.25% of average daily assets
Class I, S, T and Y shares# None None None None
Front-end sales charge Deferred sales charge Annual 12b-1 fees
(including shareholder services fees of 0.25%)
Class R1 and R6 shares None None None
Class R4 shares None None 0.25% of average daily assets
Class R5 shares None None 0.50% of average daily assets

Front-end sales charges

Class C, C1, E, I, R1, R4, R5, R6, S, T and Y Shares of all Funds are sold without an initial sales charge.

Class A, Class A1, Class A2 and Class A3 Shares

Class A, Class A1, Class A2 and Class A3 Shares are sold at the offering price, which is the net asset value plus a front-end sales charge. With respect to Class A and Class A2 Shares, you pay a lower front-end sales charge as the size of your investment increases to certain levels. With respect to Class A and Class A2 Shares, you do not pay a front-end sales charge on the Funds' distributions of dividends or capital gains you reinvest in additional Class A or Class A2 Shares of the same Fund or another RIC Fund. With respect to Class A1 and Class A3 Shares, you do not pay a front-end sales charge on the Funds' distributions of dividends or capital gains you reinvest in additional Class A1 or Class A3 Shares of the same Fund but may pay a front-end sales charge if you reinvest such proceeds in another RIC Fund.

The table below shows the rate of front-end sales charge that you pay, depending on the amount  of your investment or transaction. The tables below also show the amount of compensation that is paid to your Financial Intermediary out of the front-end sales charge. This compensation includes commissions to Financial Intermediaries that sell Class A, Class A1, Class A2 and Class A3 Shares. Financial Intermediaries may also receive the distribution fee payable on Class A, Class A1, Class A2 and Class A3 Shares at an annual rate of up to 0.25% of the average daily net assets represented by the Class A, Class A1, Class A2 and Class A3 Shares serviced by them. 

Class A Shares

Fixed income Funds have different front-end sales charges than all other funds. The fixed income Funds include the Global Opportunistic Credit, Unconstrained Total Return, Strategic Bond, Investment Grade Bond, Short Duration Bond, Tax-Exempt High Yield Bond and Tax-Exempt Bond Funds.

The other Funds include U.S. Core Equity, U.S. Defensive Equity, U.S. Dynamic Equity, U.S. Strategic Equity, U.S. Large Cap Equity, U.S. Mid Cap Equity, U.S. Small Cap Equity, International Developed Markets, Global Equity, Emerging Markets, Tax-Managed U.S. Large Cap, Tax-Managed U.S. Mid & Small Cap, Tax-Managed International Equity, Commodity Strategies, Global Infrastructure, Global Real Estate Securities, Multi-Strategy Income, Multi-Asset Growth Strategy, Strategic Call Overwriting, Select U.S. Equity and Select International Equity Funds.

The LifePoints Funds include 2020 Strategy, 2030 Strategy, 2040 Strategy, In Retirement, Conservative Strategy, Moderate Strategy, Balanced Strategy, Growth Strategy and Equity Growth Strategy Funds.

Front-end sales charge as % of
Amount of  Investment Offering price Net amount invested Financial intermediary commission as % of offering price
Fixed income Funds Front-End Sales Charges for Class A Shares
Less than $50,000 3.75 3.90 3.00
$50,000 but less than $100,000 3.50 3.63 2.75
$100,000 but less than $250,000 2.50 2.56 2.00
$250,000 but less than $500,000 2.00 2.04 1.60
$500,000 but less than $1,000,000 1.50 1.52 1.20
$1,000,000 or more* -0- -0- up to 1.00
Other Funds Front-End Sales Charges for Class A Shares
Less than $50,000 5.75 6.10 5.00
$50,000 but less than $100,000 4.50 4.71 3.75
$100,000 but less than $250,000 3.50 3.63 2.75
$250,000 but less than $500,000 2.50 2.56 2.00
$500,000 but less than $1,000,000 2.00 2.04 1.60
$1,000,000 or more* -0- -0- up to 1.00
LifePoints® Funds † Front-End Sales Charges for Class A Shares
Less than $50,000 5.75 6.10 5.00
$50,000 but less than $100,000 4.50 4.71 3.75
$100,000 but less than $250,000 3.50 3.63 2.75
$250,000 but less than $500,000 2.50 2.56 2.00
$500,000 but less than $1,000,000 2.00 2.04 1.60
$1,000,000 or more* -0- -0- up to 1.00
 

Class A1 Shares

     
 Amount of Transaction      
Less than $250,000 2.50 2.56 2.50
$250,000 but less than $500,000 2.00 2.04 2.00
$500,000 but less than $1,000,000 1.50 1.52 1.50
$1,000,000 or more  1.00 1.01 1.00
 

Class A2 Shares**

     
 Amount of Investment      
Less than $250,000 3.50 3.63 3.50
$250,000 but less than $500,000 2.50 2.56 2.50
$500,000 but less than $1,000,000 1.50 1.52 1.50
$1,000,000 or more -0- -0- 1.00
 

Class A3 Shares**

     
 Amount of Investment      
All Amounts 3.00 3.09 3.00

Investments of $1,000,000 or more (Class A and Class A2 Shares). With respect to Class A and Class A2 Shares, you do not pay a front-end sales charge when you buy $1,000,000 or more of Shares of RIC Funds. However, if your Financial Intermediary was paid a commission by the Funds' Distributor on those Class A or Class A2 Shares and you redeem those Class A or Class A2 Shares within one year of purchase, you will pay a deferred sales charge of 1.00%. Additional information on commissions paid to your Financial Intermediary on purchases of $1,000,000 or more is available in the Funds' Statement of Additional Information. 

† For the class A shares of the LifePoints Funds, Target Date Series, only existing investors may invest in these funds. 
**Class A2, Class A3 and Class C1 Shares are not currently being offered to investors and are not available for sale in any state. 
# Effective March 1, 2017, Class I Shares will not be offered to new shareholders and may only be purchased by existing Class I shareholders in a Fund.

For more information, see the full prospectus.

Reducing your front-end sales charges (Class A and Class A2 Shares)

To receive a reduced front-end sales charge on purchases of Class A or Class A2 Shares as described below, you must notify your Financial Intermediary of your ability to qualify for a reduced front-end sales charge at the time your order for Class A or Class A2 Shares is placed. Your Financial Intermediary may require certain records, such as account statements, to verify that the purchase qualifies for a reduced front-end sales charge. Additionally, you should retain any records necessary to substantiate historical costs of your Class A or Class A2 Share purchases because the Funds; Russell Investments Fund Services, LLC (RIFUS) and your Financial Intermediary may not maintain this information. 

Front-end sales charge waivers (Class A Shares)

Purchases of Class A Shares may be made at net asset value without a front-end or deferred sales charge in the following circumstances. There is no commission paid to the Financial Intermediaries for Shares purchased under the following circumstances:

  • Sales to RIC trustees and employees of Russell Investments (including retired trustees and employees), to the immediate families (as defined below) of such persons, or to a pension, profit-sharing or other benefit plan for such persons
  • Sales to current/retired registered representatives of broker-dealers having sales agreements with the Funds' Distributor to sell Class A Shares of the Funds and sales to a current spouse or the equivalent thereof, child, step-child (with respect to current union only), parent, step-parent or parent-in-law of such registered representative or to a family trust in the name of such registered representative
  • Accounts managed by a member of Russell Investments

Prior to March 1, 2016, sales of Class A Shares to multi-participant employer sponsored Defined Contribution plans held in plan level accounts, excluding SEP IRA's and SIMPLE IRAs, qualified for a front-end sales charge waiver. Sales of Class A shares to plans that previously purchased, and continue to hold, Class A shares without a front-end Sales charge pursuant to this waiver may continue to qualify for the waiver if the policies and procedures of your Financial Intermediary provide for the continued application of the waiver. Please contact your Financial Intermediary for more information.

Moving between accounts (Class A, Class A2 and Class A3 Shares)

Under certain circumstances, you may transfer Class A, Class A2 or Class A3 Shares of a Fund from an account with one registration to an account with another registration within 90 days without incurring a front-end sales charge. For example, you may transfer Shares without paying a front-end sales load in the following cases:

  • From a non-retirement account to an IRA or other individual retirement account
  • From an IRA or other individual retirement account, such as a required minimum distribution, to a non-retirement account

In some cases, due to operational limitations or reporting requirements, your Financial Intermediary must redeem Shares from one account and purchase Shares in another account to achieve this type of transfer. 

If you want to learn more about front-end sales charge waivers, contact your Financial Intermediary.

Aggregated investments (Class A and Class A2 Shares)

The following types of accounts may be combined to qualify for reduced front-end sales charge including purchases made pursuant to rights of accumulation or letter of intent as described below:

The following accounts owned by you and/or a member of your immediate family (as defined below):

  • Accounts held individually or jointly
  • Those established under the Uniform Gift to Minors Act or Uniform Transfer to Minors Act
  • IRA accounts, certain single participant retirement plan accounts, and SIMPLE-IRA, SEP-IRA or similar accounts held in individual registration
  • Solely controlled business accounts
  • Trust accounts benefiting you or a member of your immediate family

For purposes of aggregated investments, your immediate family includes your spouse, or the equivalent thereof, and your children and step-children under the age of 21.

Purchases made in nominee or street name accounts may NOT be aggregated with those made for other accounts and may NOT be aggregated with other nominee or street name accounts unless otherwise qualified as described above.

You may only combine accounts held with one Financial Intermediary for purposes of aggregated investments.

Rights of accumulation ("ROA") (Class A and Class A2 Shares)

Subject to the limitations described in the aggregation policy, you may combine current purchases of any RIC Fund with your existing holdings of all RIC Funds to determine your current front-end sales charge for Class A and Class A2 Shares. Subject to your Financial Intermediary's capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals (the "cost value"). You must notify your Financial Intermediary at the time an order is placed for a purchase or purchases which would qualify for the reduced front-end sales charge due to existing investments or other purchases. The reduced front-end sales charge may not be applied if such notification is not furnished at the time of the order. 

The value of all of your holdings in accounts established in calendar year 2007 or earlier will be assigned an initial cost value equal to the market value of those holdings as of the last business day of 2007. Thereafter, the cost value of such accounts will increase or decrease according to actual investments or withdrawals. 

For purchases to be aggregated for the purpose of qualifying for the ROA, they must be made on the same day through one Financial Intermediary. Your Financial Intermediary may require certain information to verify that the purchase qualifies for the reduced front-end sales charge. The right of accumulation is subject to modification or discontinuance at any time with respect to all Shares purchased thereafter. Additional information is available from your Financial Intermediary. 

Letter of intent ("LOI") (Class A and Class A2 Shares)

A non-binding LOI allows you to combine purchases of Shares of any RIC Funds you intend to make over a 13-month period with the market value of your current RIC Fund holdings to determine the applicable front-end sales charge. With respect to Class A2 Shares, the combined purchases must be made through one Financial Intermediary in order to be eligible for an LOI.  Any appreciation of your current RIC Fund holdings and any Shares issued from reinvestment of dividends or capital gains will not be considered purchases made during the 13-month period. A portion of your account (up to 5%) will be held in escrow to cover additional Class A front-end sales charges that may be due. If you purchase less than the amount specified in the LOI and the LOI period expires or a full-balance redemption is requested during the LOI period, Shares in your account will be automatically redeemed to pay additional front-end sales charges that may be due. Class A Shares of the Funds held in plan or omnibus accounts are not eligible for an LOI unless the plan or omnibus account can maintain the LOI on their record keeping system. If the shareholder dies within the 13-month period, no additional front-end sales charges are required to be paid.

Exchange privilege

Generally, exchanges between Class A or Class A2 Shares of the RIC Funds are not subject to a front-end sales charge. Exchanges may have the same tax consequences as ordinary sales and purchases. Please contact your Financial Intermediary and/or tax adviser for more detailed information.

Conversion privilege

Depending upon the policies of your Financial Intermediary, the following conversions may be effected without the incurrence of a front-end sales charge and/or a deferred sales charge, as applicable:

 

  • Class A or Class C Shares to Class A1, Class A2 or Class A3 Shares
  • Class C or Class C1 Shares to Class A1, Class A2 or Class A3 Shares after you have held such Class C or Class C1 Shares for a certain period of time as determined by your Financial Intermediary not to exceed ten years
  • Class C to Class C1 Shares 

Please contact your Financial Intermediary for information related to their conversion policies.

 

RIFUS believes that a conversion between Classes of the same Fund is not a taxable event; however, you must check with your Financial Intermediary to determine if they will process the conversion as non-taxable. Please consult with your Financial Intermediary and your tax adviser for more information.

 

Reinstatement privilege (Class A Shares)

You may reinvest proceeds from a redemption or distribution of Class A Shares into Class A Shares of any RIC Fund without paying a front-end sales charge if such reinvestment is made within 90 days after the redemption or distribution date and the proceeds are invested in any related account eligible to be aggregated for Rights of Accumulation purposes. Proceeds will be reinvested at the net asset value next determined after receipt of your purchase order in proper form. For purposes of this Reinstatement Privilege, automatic transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing individual retirement plan contributions are not eligible for reinstatement without a sales charge. The privilege may not be exercised if proceeds are subject to a purchase restriction as described in the section entitled "Frequent Trading Policies and Limitations on Trading Activity" and certain other restrictions may apply. Contingent deferred sales charges will be credited to your account at current net asset value following notification to the Fund by your Financial Intermediary.

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.

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