Tax-Exempt High Yield Bond Fund

Offering tax-sensitive diversification

Fund objective

The Fund seeks to provide a high level of current income that is exempt from federal tax, and as a secondary objective, total return.


Effective September 15th, 2017, Class T Shares were redesignated as Class M Shares.


Class Ticker CUSIP
A RTHAX 78249R156
C RTHCX 78249R149
E RTHEX 78249R131
M RHYTX 78250H725
S RTHSX 78249R123

Investment strategy

The Fund has a fundamental policy to invest, under normal circumstances, at least 80% of the value of its net assets plus borrowings for investment purposes in fixed income investments the income from which is exempt from federal income tax. This fundamental policy can only be changed by a vote of the shareholders of the Fund. The 80% investment requirement applies at the time the Fund invests its assets. 

Fund highlights

The Tax-Exempt High Yield Bond Fund invests principally in municipal debt obligations providing federal tax-exempt interest income. Specifically, these obligations are debt obligations issued by states, territories and possessions of the U.S. and the District of Columbia. Some of the Fund's earnings may be subject to federal income tax and most may be subject to state and local taxes. Income may also be subject to the alternative minimum tax.

The Fund employs multiple money managers unaffiliated with Russell Investments, each with its own expertise in the municipal debt securities market.

Growth of hypothetical $10,000 (since inception) - Class S

As of 10/31/2018
6/1/2015 12:00:00 AM 10000
6/30/2015 12:00:00 AM 9930
7/31/2015 12:00:00 AM 9974.071
8/31/2015 12:00:00 AM 9983.884
9/30/2015 12:00:00 AM 10088.451
10/31/2015 12:00:00 AM 10219.843
11/30/2015 12:00:00 AM 10295.496
12/31/2015 12:00:00 AM 10401.309
1/31/2016 12:00:00 AM 10513.59
2/29/2016 12:00:00 AM 10571.39
3/31/2016 12:00:00 AM 10697.522
4/30/2016 12:00:00 AM 10818.132
5/31/2016 12:00:00 AM 10913.353
6/30/2016 12:00:00 AM 11158.634
7/31/2016 12:00:00 AM 11192.816
8/31/2016 12:00:00 AM 11256.63
9/30/2016 12:00:00 AM 11281.957
10/31/2016 12:00:00 AM 11134.37
11/30/2016 12:00:00 AM 10611.481
12/31/2016 12:00:00 AM 10639.208
1/31/2017 12:00:00 AM 10734.961
2/28/2017 12:00:00 AM 10874.653
3/31/2017 12:00:00 AM 10929.341
4/30/2017 12:00:00 AM 11038.506
5/31/2017 12:00:00 AM 11220.195
6/30/2017 12:00:00 AM 11221.992
7/31/2017 12:00:00 AM 11286.519
8/31/2017 12:00:00 AM 11436.071
9/30/2017 12:00:00 AM 11426.224
10/31/2017 12:00:00 AM 11384.768
11/30/2017 12:00:00 AM 11412.439
12/31/2017 12:00:00 AM 11538.72
1/31/2018 12:00:00 AM 11516.636
2/28/2018 12:00:00 AM 11500.442
3/31/2018 12:00:00 AM 11610.376
4/30/2018 12:00:00 AM 11649.932
5/31/2018 12:00:00 AM 11836.249
6/30/2018 12:00:00 AM 11898.377
7/31/2018 12:00:00 AM 11968.141
8/31/2018 12:00:00 AM 12043.171
9/30/2018 12:00:00 AM 11968.727
10/31/2018 12:00:00 AM 11809.375

Historical NAVs

Historical distributions

Ex-Date Income Dividend Capital Gains - Short Term Capital Gains - Long Term
12/04/2017 0.0333
12/20/2017 0.0314 0
02/02/2018 0.0353
03/02/2018 0.029
04/03/2018 0.0355
05/02/2018 0.0366
06/04/2018 0.0353
07/03/2018 0.032
08/02/2018 0.0364
09/05/2018 0.0343
10/02/2018 0.0298
11/02/2018 0.0397

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:

Holdings, sector weights, and quality ratings (where applicable) are share class agnostic.

Top 10 Holdings

As of 10/31/2018

Updated Monthly

Company Weight
Puerto Rico Highways & Transportation Authority Revenue Bonds 5.250% 01-Jul-2038 1.02%
Puerto Rico Sales Tax Financing Corp. Revenue Bond 0.82%
California Municipal Finance Authority Revenue Bon 0.74%
Children's Trust Fund Puerto Rico Tobacco Settleme 0.69%
Northern Tobacco Securitization Corp. Revenue Bond 0.60%
California Municipal Finance Authority Revenue Bond 5.000% 01-Jun-2050 0.53%
Chicago Board of Education Special Tax 6.000% 1-A 0.50%
Chicago Transit Authority Revenue Bonds 5.000% 1- 0.49%
Golden State Tobacco Securitization Corp. Revenue 0.49%
Allentown Neighborhood Improvement Zone Developmen 0.46%

Sector weightings

As of 10/31/2018

Updated Monthly

Sector Weighting
Other Revenue 22.80%
Industrial Revenue 17.20%
Health Care Revenue 15.80%
Education Revenue 12.50%
General Obligation 8.00%
Utility Revenue 4.80%
Housing Revenue 4.10%
Cash Equivalents 3.20%
Refunded and Special Obligations 1.70%
Pollution Control Revenue 1.00%
Leasing Revenue 0.80%

Quality ratingsƩ

As of 09/30/2018

Updated Monthly

Quality rating % of market value
AAA 3.85%
AA 5.45%
A 14.55%
BBB 35.83%
BB 13.76%
B 4.67%
CCC & Below 7.16%
Unrated 14.73%

The top ten holdings list excludes shares of the investment vehicles in which the Fund invests its cash. The % of Portfolio value is subject to change.

Sector allocations and credit quality exposures may not equal 100 percent as a result of the fund's use of certain financial instruments such as futures, forwards, options, swaps and when issued transactions or forward commitments. Managers utilize these instruments as a substitute for holding securities directly, for hedging purposes, to take a net short position in certain markets or to adjust the interest rate sensitivity and duration of the portfolio. In the event short positions are created, they may be reflected as negative weightings in sector allocations and credit quality exposures.

ƩThe sum of the debt instrument quality ratings is based upon the Barclays index methodology, which reflects the ratings of S&P and Moody's such that if both S&P and Moody's rate an instrument, the lower of the two ratings is used, and if only one rates the instrument, that rating is used. If the debt instrument has not been rated by any of these two ratings agencies, the security is classified as "Unrated."

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.

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.

Diversification and multi-asset solutions do not assure a profit and do not protect against loss in declining markets.

Not FDIC Insured. May Lose Value. No Bank Guarantee.

Securities products and services offered through Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments.
For information on the Financial Industry Regulatory Authority, go to

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