OMB APPROVAL
OMB Number:
3235-0570
Expires: July 31,
2017
Estimated average
burden hours per
response: 20.6
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-03153
Russell Investment Company
(Exact name of registrant as specified in charter)
1301 2nd Avenue 18th Floor, Seattle Washington 98101
(Address of principal executive offices) (Zip code)
Mary Beth R. Albaneze, Secretary and Chief Legal Officer
Russell Investment Company
1301 2nd Avenue
18th Floor
Seattle, Washington 98101
206-505-4846
______________________________________________
(Name and address of agent for service)
Registrant's telephone number, including area code: 206-505-7877
Date of fiscal year end: October 31
Date of reporting period: November 1, 2016 – April 30, 2017
Item 1. Reports to Stockholders
Russell Investment
Company
Russell Investment Company is a
series investment company with
42 different investment portfolios
referred to as Funds. These
financial statements report on 28
of these Funds.
Russell Investment Company
Semi-annual Report
April 30, 2017 (Unaudited)
Table of Contents
Page | |
U.S. Core Equity Fund | 3 |
U.S. Defensive Equity Fund | 21 |
U.S. Dynamic Equity Fund | 41 |
U.S. Strategic Equity Fund | 61 |
U.S. Large Cap Equity Fund | 81 |
U.S. Mid Cap Equity Fund | 97 |
U.S. Small Cap Equity Fund | 115 |
International Developed Markets Fund | 141 |
Global Equity Fund | 169 |
Emerging Markets Fund | 199 |
Tax-Managed U.S. Large Cap Fund | 229 |
Tax-Managed U.S. Mid & Small Cap Fund | 247 |
Tax-Managed International Equity Fund | 267 |
Global Opportunistic Credit Fund | 295 |
Unconstrained Total Return Fund | 343 |
Strategic Bond Fund | 379 |
Investment Grade Bond Fund | 425 |
Short Duration Bond Fund | 459 |
Tax-Exempt High Yield Bond Fund | 489 |
Tax-Exempt Bond Fund | 517 |
Commodity Strategies Fund | 547 |
Global Infrastructure Fund | 567 |
Global Real Estate Securities Fund | 589 |
Multi-Strategy Income Fund | 611 |
Multi-Asset Growth Strategy Fund | 653 |
Strategic Call Overwriting Fund | 693 |
Select U.S. Equity Fund | 711 |
Select International Equity Fund | 733 |
Notes to Schedules of Investments | 763 |
Notes to Financial Highlights | 765 |
Notes to Financial Statements | 767 |
Affiliated Brokerage Transactions | 804 |
Basis for Approval of Investment Advisory Contracts | 805 |
Shareholder Requests for Additional Information | 806 |
Disclosure of Information about Fund Trustees and Officers | 807 |
Adviser, Money Managers and Service Providers | 812 |
Russell Investment Company
Copyright © Russell Investments 2017. All rights reserved.
Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with
minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.
Fund objectives, risks, charges and expenses should be carefully considered before in-
vesting. A prospectus containing this and other important information must precede or
accompany this material. Please read the prospectus carefully before investing.
Securities distributed through Russell Investments Financial Services, LLC, member FINRA, part of
Russell Investments.
Performance quoted represents past performance and does not guarantee future results. The investment return
and principal value of an investment will fluctuate so that shares, when redeemed, 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 data may be obtained by visiting https://russellinvestments.com/us/
funds/performance-prices.
Russell Investment Company
U.S. Core Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, and (2) ongoing costs, including advisory and | would have been higher. | |||||
administrative fees; distribution (12b-1) and/or service fees; | Hypothetical | |||||
and other Fund expenses. The Example is intended to help | Performance (5% | |||||
you understand your ongoing costs (in dollars) of investing in | Actual | return before | ||||
the Fund and to compare these costs with the ongoing costs of | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
investing in other mutual funds. The Example is based on an | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
investment of $1,000 invested at the beginning of the period and | Ending Account Value | |||||
held for the entire period indicated, which for this Fund is from | April 30, 2017 | $ | 1,130.20 | $ | 1,019.29 | |
November 1, 2016 to April 30, 2017. | Expenses Paid During Period* | $ | 5.86 | $ | 5.56 | |
Actual Expenses | * Expenses are equal to the Fund's annualized expense ratio of 1.11% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
The information in the table under the heading “Actual | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
Performance” provides information about actual account values | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
and actual expenses. You may use the information in this column, | waivers and/or reimbursements, expenses would have been higher. | |||||
together with the amount you invested, to estimate the expenses | ||||||
Hypothetical | ||||||
that you paid over the period. Simply divide your account value by | Performance (5% | |||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Actual | return before | ||||
= 8.6), then multiply the result by the number in the first column | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
the expenses you paid on your account during this period. | Ending Account Value | |||||
April 30, 2017 | $ | 1,126.10 | $ | 1,015.57 | ||
Hypothetical Example for Comparison Purposes | Expenses Paid During Period* | $ | 9.81 | $ | 9.30 | |
The information in the table under the heading “Hypothetical | ||||||
Performance (5% return before expenses)” provides information | * Expenses are equal to the Fund's annualized expense ratio of 1.86% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
about hypothetical account values and hypothetical expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
based on the Fund’s actual expense ratio and an assumed rate of | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
return of 5% per year before expenses, which is not the Fund’s | waivers and/or reimbursements, expenses would have been higher. | |||||
actual return. The hypothetical account values and expenses | ||||||
Hypothetical | ||||||
may not be used to estimate the actual ending account balance or | Performance (5% | |||||
expenses you paid for the period. You may use this information | Actual | return before | ||||
to compare the ongoing costs of investing in the Fund and other | Class E | Performance | expenses) | |||
funds. To do so, compare this 5% hypothetical example with the | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
5% hypothetical examples that appear in the shareholder reports | Ending Account Value | |||||
of other funds. | April 30, 2017 | $ | 1,130.30 | $ | 1,019.29 | |
Expenses Paid During Period* | $ | 5.86 | $ | 5.56 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.11% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
U.S. Core Equity Fund 3
Russell Investment Company
U.S. Core Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class I | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,131.60 | $ | 1,020.88 | ||
Expenses Paid During Period* | $ | 4.18 | $ | 3.96 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.79% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,131.60 | $ | 1,020.58 | ||
Expenses Paid During Period* | $ | 4.49 | $ | 4.26 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.85% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 1, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 996.30 | $ | 1,021.52 | ||
Expenses Paid During Period* | $ | 1.10 | $ | 3.31 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.66% | ||||||
(representing the 61-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 61/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
0.66% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
one-half year period). |
4 U.S. Core Equity Fund
Russell Investment Company
U.S. Core Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 96.6% | Wal-Mart Stores, Inc. | 110,086 | 8,278 | ||||
Consumer Discretionary - 13.2% | Walt Disney Co. (The) | 61,942 | 7,161 | ||||
Aaron's, Inc. Class A | 5,400 | 194 | Whirlpool Corp. | 8,600 | 1,597 | ||
Amazon.com, Inc.(Æ) | 9,141 | 8,456 | Wynn Resorts, Ltd. | 1,124 | 138 | ||
AutoZone, Inc.(Æ) | 1,746 | 1,209 | Yum China Holdings, Inc.(Æ) | 2,344 | 80 | ||
Avon Products, Inc.(Æ) | 39,800 | 193 | Yum! Brands, Inc. | 2,344 | 154 | ||
Bed Bath & Beyond, Inc. | 17,100 | 663 | |||||
Brinker International, Inc. | 7,900 | 349 | 89,636 | ||||
Cable One, Inc. | 490 | 334 | |||||
Carnival Corp. | 19,018 | 1,174 | Consumer Staples - 6.7% | ||||
Altria Group, Inc. | 60,025 | 4,310 | |||||
CBS Corp. Class B | 26,980 | 1,796 | Archer-Daniels-Midland Co. | 27,131 | 1,241 | ||
Chipotle Mexican Grill, Inc. Class A(Æ) | 5,271 | 2,501 | Brown-Forman Corp. Class B - ADR | 24,100 | 1,140 | ||
Coach, Inc. | 59,669 | 2,350 | Bunge, Ltd. | 6,900 | 545 | ||
Comcast Corp. Class A | 37,592 | 1,473 | Coca-Cola Co. (The) | 14,887 | 642 | ||
Costco Wholesale Corp. | 13,642 | 2,421 | Colgate-Palmolive Co. | 21,452 | 1,545 | ||
Darden Restaurants, Inc. | 6,500 | 554 | CVS Health Corp. | 44,854 | 3,698 | ||
Dollar Tree, Inc.(Æ) | 3,737 | 309 | Dr Pepper Snapple Group, Inc. | 13,000 | 1,191 | ||
Domino's Pizza, Inc. | 3,450 | 626 | Energizer Holdings, Inc.(Æ) | 1,000 | 71 | ||
DR Horton, Inc. | 96,893 | 3,187 | General Mills, Inc. | 26,669 | 1,534 | ||
Estee Lauder Cos., Inc. (The) Class A | 14,900 | 1,298 | JM Smucker Co. (The) | 6,890 | 873 | ||
Ford Motor Co. | 58,800 | 674 | Kellogg Co. | 2,986 | 212 | ||
General Motors Co. | 80,246 | 2,779 | Kimberly-Clark Corp. | 9,827 | 1,275 | ||
Goodyear Tire & Rubber Co. (The) | 18,806 | 681 | Kraft Heinz Co. (The) | 29,001 | 2,621 | ||
Hanesbrands, Inc. | 27,674 | 604 | Mondelez International, Inc. Class A | 116,378 | 5,241 | ||
Hilton Worldwide Holdings, Inc. | 3,400 | 200 | PepsiCo, Inc. | 32,328 | 3,664 | ||
Home Depot, Inc. (The) | 11,274 | 1,760 | Philip Morris International, Inc. | 83,752 | 9,284 | ||
IMAX Corp.(Æ) | 73,134 | 2,231 | Procter & Gamble Co. (The) | 11,478 | 1,002 | ||
John Wiley & Sons, Inc. Class A | 3,000 | 158 | Sysco Corp. | 12,504 | 661 | ||
Kohl's Corp. | 6,892 | 269 | Tyson Foods, Inc. Class A | 22,400 | 1,439 | ||
Lennar Corp. Class A | 3,177 | 160 | United Natural Foods, Inc.(Æ) | 4,800 | 199 | ||
Live Nation Entertainment, Inc.(Æ) | 4,800 | 154 | Walgreens Boots Alliance, Inc. | 5,525 | 478 | ||
Lowe's Cos., Inc. | 33,657 | 2,857 | Whole Foods Market, Inc. | 68,499 | 2,491 | ||
Macy's, Inc. | 6,750 | 197 | |||||
Marriott International, Inc. Class A | 4,728 | 446 | 45,357 | ||||
McDonald's Corp. | 18,181 | 2,544 | |||||
MGM Resorts International | 77,314 | 2,374 | Energy - 6.9% | ||||
Michaels Cos., Inc. (The)(Æ) | 14,500 | 339 | Anadarko Petroleum Corp. | 26,117 | 1,489 | ||
Nike, Inc. Class B | 71,929 | 3,986 | Apache Corp. | 18,489 | 899 | ||
Nordstrom, Inc. | 4,840 | 234 | BP PLC - ADR | 173,541 | 5,957 | ||
Norwegian Cruise Line Holdings, Ltd.(Æ) | 12,236 | 660 | Canadian Natural Resources, Ltd. | 58,096 | 1,852 | ||
NVR, Inc.(Æ) | 694 | 1,465 | Chevron Corp. | 60,940 | 6,502 | ||
Priceline Group, Inc. (The)(Æ) | 1,568 | 2,896 | ConocoPhillips | 74,090 | 3,549 | ||
PulteGroup, Inc. | 38,758 | 879 | Core Laboratories NV | 20,167 | 2,235 | ||
Ralph Lauren Corp. Class A | 664 | 54 | Devon Energy Corp. | 22,833 | 902 | ||
Royal Caribbean Cruises, Ltd. | 3,900 | 416 | Energen Corp.(Æ) | 5,100 | 265 | ||
Scripps Networks Interactive, Inc. Class A | 3,712 | 277 | Ensco PLC Class A | 19,500 | 154 | ||
Service Corp. International | 2,272 | 73 | EOG Resources, Inc. | 7,700 | 712 | ||
Starbucks Corp. | 64,886 | 3,897 | Exxon Mobil Corp. | 116,764 | 9,535 | ||
Target Corp. | 49,465 | 2,763 | Halliburton Co. | 5,400 | 248 | ||
Thomson Reuters Corp. | 3,987 | 181 | Magna International, Inc. Class A | 18,449 | 771 | ||
Time Warner, Inc. | 28,017 | 2,781 | National Oilwell Varco, Inc. | 11,200 | 392 | ||
Time, Inc. | 1,000 | 15 | Noble Corp. PLC | 55,700 | 267 | ||
TJX Cos., Inc. | 24,244 | 1,907 | Occidental Petroleum Corp. | 55,402 | 3,409 | ||
Toll Brothers, Inc. | 8,716 | 314 | Oceaneering International, Inc. | 11,761 | 310 | ||
Toyota Motor Corp. - ADR | 4,201 | 454 | PBF Energy, Inc. Class A | 47,100 | 1,051 | ||
Tractor Supply Co. | 12,500 | 774 | Phillips 66 | 45,558 | 3,624 | ||
Viacom, Inc. Class B | 3,591 | 153 | Pioneer Natural Resources Co. | 2,700 | 467 | ||
Visteon Corp.(Æ) | 5,200 | 535 | Schlumberger, Ltd. | 21,094 | 1,531 | ||
Valero Energy Corp. | 10,500 | 678 | |||||
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 5
Russell Investment Company
U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
World Fuel Services Corp. | 5,000 | 184 | MetLife, Inc. | 15,179 | 786 | ||
46,983 | Morgan Stanley | 26,937 | 1,168 | ||||
Navient Corp. | 11,891 | 181 | |||||
Financial Services - 19.8% | New York Community Bancorp, Inc. | 10,954 | 146 | ||||
Aflac, Inc. | 4,371 | 327 | Northern Trust Corp. | 1,276 | 115 | ||
AGNC Investment Corp. | 30,476 | 642 | OneMain Holdings, Inc.(Æ) | 13,740 | 320 | ||
Alleghany Corp.(Æ) | 710 | 434 | PNC Financial Services Group, Inc. (The) | 37,635 | 4,507 | ||
Alliance Data Systems Corp. | 9,268 | 2,314 | Popular, Inc. | 20,069 | 841 | ||
Allstate Corp. (The) | 35,724 | 2,904 | Progressive Corp. (The) | 43,600 | 1,732 | ||
Ally Financial, Inc. | 21,600 | 428 | Prologis, Inc.(ö) | 10,657 | 580 | ||
American Express Co. | 52,600 | 4,169 | Prudential Financial, Inc. | 7,684 | 822 | ||
American International Group, Inc. | 33,098 | 2,016 | Public Storage(ö) | 1,744 | 365 | ||
Ameriprise Financial, Inc. | 1,274 | 163 | Quality Care Properties, Inc.(Æ)(ö) | 1,081 | 19 | ||
Aspen Insurance Holdings, Ltd. | 18,700 | 979 | Radian Group, Inc. | 22,062 | 372 | ||
Assurant, Inc. | 3,150 | 303 | Regions Financial Corp. | 33,113 | 455 | ||
Assured Guaranty, Ltd. | 5,700 | 217 | Reinsurance Group of America, Inc. Class A | 10,400 | 1,300 | ||
Bank of America Corp. | 363,738 | 8,490 | Retail Properties of America, Inc. Class A(ö) | 10,600 | 141 | ||
Bank of New York Mellon Corp. (The) | 4,700 | 221 | Santander Consumer USA Holdings, Inc.(Æ) | 74,378 | 948 | ||
BB&T Corp. | 8,654 | 374 | Signature Bank(Æ) | 1,604 | 222 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 27,755 | 4,585 | Simon Property Group, Inc.(ö) | 12,034 | 1,989 | ||
Blackstone Group, LP (The) | 49,906 | 1,539 | SL Green Realty Corp.(ö) | 4,390 | 461 | ||
BNP Paribas - ADR | 26,291 | 929 | State Street Corp. | 77,607 | 6,510 | ||
Camden Property Trust(ö) | 8,000 | 659 | SunTrust Banks, Inc. | 33,563 | 1,907 | ||
Capital One Financial Corp. | 7,400 | 595 | Synchrony Financial | 51,985 | 1,445 | ||
CBOE Holdings, Inc. | 12,000 | 989 | TFS Financial Corp. | 16,358 | 271 | ||
Chubb, Ltd. | 3,167 | 435 | Travelers Cos., Inc. (The) | 20,482 | 2,492 | ||
Citigroup, Inc. | 100,202 | 5,924 | Two Harbors Investment Corp.(ö) | 52,262 | 522 | ||
Citizens Financial Group, Inc. | 26,444 | 971 | US Bancorp | 44,811 | 2,298 | ||
CME Group, Inc. Class A | 2,128 | 247 | Visa, Inc. Class A | 69,225 | 6,315 | ||
Comerica, Inc. | 13,100 | 926 | Voya Financial, Inc. | 45,552 | 1,703 | ||
Cullen/Frost Bankers, Inc. | 2,763 | 261 | Wells Fargo & Co. | 158,010 | 8,508 | ||
DDR Corp.(ö) | 21,100 | 228 | White Mountains Insurance Group, Ltd. | 290 | 249 | ||
Discover Financial Services | 14,300 | 895 | XL Group, Ltd. | 100,300 | 4,197 | ||
Dun & Bradstreet Corp. (The) | 3,000 | 329 | 134,147 | ||||
E*Trade Financial Corp.(Æ) | 9,000 | 311 | |||||
East West Bancorp, Inc. | 8,500 | 461 | Health Care - 11.7% | ||||
Equinix, Inc.(ö) | 5,931 | 2,477 | Abbott Laboratories | 14,274 | 623 | ||
Equity Residential(ö) | 14,956 | 966 | AbbVie, Inc. | 13,274 | 875 | ||
Everest Re Group, Ltd. | 1,140 | 287 | Allergan PLC(Æ) | 1,708 | 417 | ||
Fifth Third Bancorp | 17,498 | 427 | Allscripts Healthcare Solutions, Inc.(Æ) | 7,350 | 88 | ||
First Data Corp. Class A(Æ) | 36,305 | 567 | Alnylam Pharmaceuticals, Inc.(Æ) | 21,779 | 1,167 | ||
FleetCor Technologies, Inc.(Æ) | 21,218 | 2,995 | Amgen, Inc. | 2,482 | 405 | ||
Franklin Resources, Inc. | 4,503 | 194 | Anthem, Inc. | 25,532 | 4,542 | ||
GGP, Inc.(Æ) | 21,140 | 457 | Baxter International, Inc. | 43,512 | 2,423 | ||
Goldman Sachs Group, Inc. (The) | 14,039 | 3,142 | Becton Dickinson and Co. | 1,854 | 347 | ||
Hartford Financial Services Group, Inc. | 18,319 | 886 | Biogen, Inc.(Æ) | 1,443 | 391 | ||
HCP, Inc.(ö) | 56,406 | 1,768 | Bioverativ, Inc.(Æ) | 721 | 42 | ||
Huntington Bancshares, Inc. | 20,642 | 265 | Bristol-Myers Squibb Co. | 7,186 | 403 | ||
Intercontinental Exchange, Inc. | 3,941 | 237 | Cardinal Health, Inc. | 24,500 | 1,778 | ||
JPMorgan Chase & Co. | 93,053 | 8,095 | Celgene Corp.(Æ) | 3,656 | 454 | ||
KeyCorp | 103,422 | 1,886 | Centene Corp.(Æ) | 2,800 | 208 | ||
KKR & Co., LP | 106,074 | 2,013 | Cerner Corp.(Æ) | 46,083 | 2,984 | ||
Lincoln National Corp. | 6,600 | 435 | Cigna Corp. | 8,250 | 1,290 | ||
Loews Corp. | 78,100 | 3,641 | Eli Lilly & Co. | 18,361 | 1,507 | ||
M&T Bank Corp. | 9,717 | 1,511 | Envision Healthcare Corp.(Æ) | 35,799 | 2,006 | ||
Marsh & McLennan Cos., Inc. | 5,020 | 372 | Exact Sciences Corp.(Æ) | 19,620 | 589 | ||
MasterCard, Inc. Class A | 29,008 | 3,374 | Express Scripts Holding Co.(Æ) | 33,562 | 2,059 |
See accompanying notes which are an integral part of the financial statements.
6 U.S. Core Equity Fund
Russell Investment Company
U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Gilead Sciences, Inc. | 16,590 | 1,138 | Chicago Bridge & Iron Co. | 13,747 | 414 | ||
Horizon Pharma PLC(Æ) | 37,967 | 584 | Cummins, Inc. | 1,104 | 167 | ||
Humana, Inc. | 10,644 | 2,363 | Danaher Corp. | 49,228 | 4,102 | ||
Jazz Pharmaceuticals PLC(Æ) | 2,584 | 412 | Deere & Co. | 5,465 | 610 | ||
Johnson & Johnson | 82,267 | 10,157 | Delphi Automotive PLC | 28,612 | 2,300 | ||
LifePoint Health, Inc.(Æ) | 2,300 | 143 | Delta Air Lines, Inc. | 96,049 | 4,365 | ||
Magellan Health, Inc.(Æ) | 2,500 | 172 | Eaton Corp. PLC | 8,990 | 680 | ||
Mallinckrodt PLC(Æ) | 15,309 | 718 | EMCOR Group, Inc. | 7,500 | 493 | ||
Masimo Corp.(Æ) | 4,700 | 483 | Emerson Electric Co. | 5,240 | 316 | ||
Medtronic PLC | 58,244 | 4,840 | FedEx Corp. | 16,809 | 3,189 | ||
Merck & Co., Inc. | 125,568 | 7,828 | Fluor Corp. | 25,206 | 1,294 | ||
Mylan NV(Æ) | 39,475 | 1,474 | General Dynamics Corp. | 1,575 | 305 | ||
Novo Nordisk A/S - ADR | 65,905 | 2,549 | General Electric Co. | 25,793 | 748 | ||
Pfizer, Inc. | 189,286 | 6,420 | Honeywell International, Inc. | 21,966 | 2,880 | ||
Quintiles Transnational Holdings, Inc.(Æ) | 2,545 | 214 | Hub Group, Inc. Class A(Æ) | 5,400 | 211 | ||
Regeneron Pharmaceuticals, Inc.(Æ) | 6,486 | 2,520 | Illinois Tool Works, Inc. | 2,465 | 340 | ||
Sanofi - ADR | 47,100 | 2,228 | Insperity, Inc. | 1,300 | 119 | ||
Stryker Corp. | 11,612 | 1,583 | Jacobs Engineering Group, Inc. | 12,900 | 708 | ||
Thermo Fisher Scientific, Inc. | 17,649 | 2,918 | JB Hunt Transport Services, Inc. | 18,991 | 1,703 | ||
UnitedHealth Group, Inc. | 31,696 | 5,542 | Johnson Controls International PLC | 84,849 | 3,527 | ||
WellCare Health Plans, Inc.(Æ) | 1,450 | 222 | Kansas City Southern | 26,922 | 2,425 | ||
79,106 | L-3 Technologies, Inc. | 3,600 | 618 | ||||
Landstar System, Inc. | 12,640 | 1,080 | |||||
Materials and Processing - 2.9% | Lockheed Martin Corp. | 1,140 | 307 | ||||
Air Products & Chemicals, Inc. | 1,775 | 249 | ManpowerGroup, Inc. | 13,700 | 1,383 | ||
AptarGroup, Inc. | 7,000 | 562 | Navistar International Corp.(Æ) | 5,600 | 151 | ||
Celanese Corp. Class A | 19,200 | 1,671 | Norfolk Southern Corp. | 21,800 | 2,561 | ||
Crown Holdings, Inc.(Æ) | 15,620 | 876 | Northrop Grumman Corp. | 1,122 | 276 | ||
Dow Chemical Co. (The) | 61,558 | 3,866 | Raytheon Co. | 29,573 | 4,590 | ||
Eastman Chemical Co. | 10,719 | 855 | Rockwell Automation, Inc. | 17,567 | 2,764 | ||
Ecolab, Inc. | 26,388 | 3,406 | Snap-on, Inc. | 12,443 | 2,085 | ||
EI du Pont de Nemours & Co. | 45,853 | 3,658 | Southwest Airlines Co. | 48,500 | 2,727 | ||
Louisiana-Pacific Corp.(Æ) | 21,488 | 553 | Stanley Black & Decker, Inc. | 15,700 | 2,138 | ||
LyondellBasell Industries NV Class A | 8,392 | 711 | Terex Corp. | 3,500 | 122 | ||
Monsanto Co. | 2,019 | 235 | Textron, Inc. | 14,850 | 693 | ||
NewMarket Corp. | 460 | 217 | Trimble Navigation, Ltd.(Æ) | 45,718 | 1,620 | ||
PPG Industries, Inc. | 3,124 | 343 | Union Pacific Corp. | 40,287 | 4,510 | ||
Praxair, Inc. | 1,238 | 155 | United Continental Holdings, Inc.(Æ) | 4,884 | 343 | ||
Reliance Steel & Aluminum Co. | 8,278 | 652 | United Parcel Service, Inc. Class B | 10,168 | 1,092 | ||
Sherwin-Williams Co. (The) | 3,430 | 1,148 | United Technologies Corp. | 33,735 | 4,014 | ||
Silgan Holdings, Inc. | 2,700 | 164 | Wabtec Corp. | 28,448 | 2,387 | ||
WestRock Co. | 1,526 | 82 | Waste Management, Inc. | 3,559 | 259 | ||
WESCO International, Inc.(Æ) | 4,000 | 244 | |||||
19,403 | WW Grainger, Inc. | 5,023 | 968 | ||||
Xerox Corp. | 64,600 | 464 | |||||
Producer Durables - 12.6% | Xylem, Inc. | 46,605 | 2,396 | ||||
3M Co. | 3,479 | 681 | |||||
Accenture PLC Class A | 589 | 71 | 85,205 | ||||
Adient PLC | 23,574 | 1,734 | |||||
AECOM(Æ) | 84,494 | 2,891 | Technology - 17.2% | ||||
AerCap Holdings NV(Æ) | 29,425 | 1,354 | Adobe Systems, Inc.(Æ) | 17,656 | 2,361 | ||
AGCO Corp. | 16,740 | 1,071 | Alphabet, Inc. Class A(Æ) | 3,319 | 3,069 | ||
American Airlines Group, Inc. | 41,978 | 1,789 | Alphabet, Inc. Class C(Æ) | 14,382 | 13,028 | ||
Ametek, Inc. | 1,742 | 100 | Anixter International, Inc.(Æ) | 500 | 41 | ||
Automatic Data Processing, Inc. | 27,169 | 2,839 | Apple, Inc. | 89,061 | 12,792 | ||
Babcock & Wilcox Co. (The) Class W(Æ) | 8,900 | 438 | ARRIS International PLC(Æ) | 15,500 | 403 | ||
Boeing Co. (The) | 7,964 | 1,472 | Arrow Electronics, Inc.(Æ) | 14,200 | 1,001 | ||
Carlisle Cos., Inc. | 756 | 77 | ASML Holding NV Class G | 17,996 | 2,373 |
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 7
Russell Investment Company
U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) or | Value | Amount ($) or | Value | ||||||||
Shares | $ | Shares | $ | ||||||||
Aspen Technology, Inc.(Æ) | 7,100 | 437 | Duke Energy Corp. | 34,499 | 2,846 | ||||||
Autodesk, Inc.(Æ) | 20,545 | 1,850 | Edison International | 6,600 | 528 | ||||||
Avnet, Inc. | 38,755 | 1,499 | Entergy Corp. | 53,900 | 4,110 | ||||||
Broadcom, Ltd. | 10,882 | 2,403 | Eversource Energy | 16,200 | 962 | ||||||
Cadence Design Systems, Inc.(Æ) | 40,600 | 1,322 | Exelon Corp. | 15,400 | 533 | ||||||
Cavium, Inc.(Æ) | 23,950 | 1,649 | NextEra Energy, Inc. | 14,515 | 1,939 | ||||||
Cirrus Logic, Inc.(Æ) | 3,600 | 232 | NiSource, Inc. | 36,200 | 878 | ||||||
Cisco Systems, Inc. | 64,115 | 2,184 | PG&E Corp. | 23,027 | 1,544 | ||||||
Cognizant Technology Solutions Corp. Class | Pinnacle West Capital Corp. | 9,100 | 774 | ||||||||
A | 6,613 | 398 | Public Service Enterprise Group, Inc. | 6,500 | 286 | ||||||
Dell Technologies, Inc. Class V(Æ) | 5,800 | 389 | Southern Co. (The) | 18,679 | 930 | ||||||
DXC Technology Co. | 31,699 | 2,388 | T-Mobile US, Inc.(Æ) | 35,910 | 2,416 | ||||||
F5 Networks, Inc.(Æ) | 3,160 | 408 | US Cellular Corp.(Æ) | 3,000 | 118 | ||||||
Facebook, Inc. Class A(Æ) | 51,114 | 7,680 | Verizon Communications, Inc. | 100,692 | 4,623 | ||||||
Finisar Corp.(Æ) | 11,500 | 263 | 37,567 | ||||||||
FireEye, Inc.(Æ) | 6,500 | 81 | |||||||||
Gartner, Inc.(Æ) | 12,200 | 1,392 | Total Common Stocks | ||||||||
Harris Corp. | 13,188 | 1,476 | |||||||||
Hewlett Packard Enterprise Co. | 10,900 | 203 | (cost $528,111) | 654,196 | |||||||
HP, Inc. | 22,500 | 423 | |||||||||
Insight Enterprises, Inc.(Æ) | 1,140 | 48 | Short-Term Investments - 3.7% | ||||||||
Intel Corp. | 150,140 | 5,428 | U.S. Cash Management Fund | 24,138,086 | (8) | 24,143 | |||||
International Business Machines Corp. | 22,780 | 3,652 | United States Treasury Bills | ||||||||
Intuit, Inc. | 10,820 | 1,355 | 0.010% due 08/03/17(~)(§) | 1,100 | 1,098 | ||||||
IPG Photonics Corp.(Æ) | 4,536 | 573 | Total Short-Term Investments | ||||||||
Jabil Circuit, Inc. | 4,500 | 131 | (cost $25,239) | 25,241 | |||||||
Juniper Networks, Inc. | 49,300 | 1,482 | |||||||||
Marvell Technology Group, Ltd. | 191,444 | 2,876 | Total Investments 100.3% | ||||||||
Micron Technology, Inc.(Æ) | 69,518 | 1,924 | |||||||||
Microsoft Corp. | 108,365 | 7,419 | (identified cost $553,350) | 679,437 | |||||||
NetApp, Inc. | 15,600 | 622 | |||||||||
Nuance Communications, Inc.(Æ) | 22,400 | 401 | Other Assets and Liabilities, Net | ||||||||
Oracle Corp. | 210,247 | 9,453 | - | (0.3%) | (1,868 | ) | |||||
QUALCOMM, Inc. | 109,439 | 5,881 | Net Assets - 100.0% | 677,569 | |||||||
Red Hat, Inc.(Æ) | 29,945 | 2,638 | |||||||||
Salesforce.com, Inc.(Æ) | 37,699 | 3,247 | |||||||||
SAP SE - ADR | 24,449 | 2,449 | |||||||||
Synaptics, Inc.(Æ) | 10,400 | 570 | |||||||||
SYNNEX Corp. | 860 | 93 | |||||||||
Synopsys, Inc.(Æ) | 18,600 | 1,371 | |||||||||
Tableau Software, Inc. Class A(Æ) | 3,200 | 172 | |||||||||
Tech Data Corp.(Æ) | 8,400 | 803 | |||||||||
Texas Instruments, Inc. | 5,336 | 423 | |||||||||
Twitter, Inc.(Æ) | 12,200 | 201 | |||||||||
Viavi Solutions, Inc. Class W(Æ) | 86,400 | 864 | |||||||||
Zynga, Inc. Class A(Æ) | 336,100 | 971 | |||||||||
116,792 | |||||||||||
Utilities - 5.6% | |||||||||||
American Electric Power Co., Inc. | 29,429 | 1,997 | |||||||||
American Water Works Co., Inc. | 6,600 | 526 | |||||||||
AT&T, Inc. | 245,631 | 9,734 | |||||||||
Calpine Corp.(Æ) | 46,999 | 479 | |||||||||
CMS Energy Corp. | 4,000 | 182 | |||||||||
Consolidated Edison, Inc. | 11,500 | 912 | |||||||||
Dominion Resources, Inc. | 9,507 | 736 | |||||||||
DTE Energy Co. | 4,910 | 514 |
See accompanying notes which are an integral part of the financial statements.
8 U.S. Core Equity Fund
Russell Investment Company
U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||||||||||||
Amounts in thousands (except contract amounts) | |||||||||||||||||
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||||||||||
Contracts | Amount | Date | $ | ||||||||||||||
Long Positions | |||||||||||||||||
S&P 500 E-Mini Index Futures | 85 | USD | 10,117 | 06/17 | 135 | ||||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 135 | ||||||||||||||||
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Consumer Discretionary | $ | 89,636 | $ | — | $ | — | $ | — | $ | 89,636 | 13.2 | ||||||
Consumer Staples | 45,357 | — | — | — | 45,357 | 6.7 | |||||||||||
Energy | 46,983 | — | — | — | 46,983 | 6.9 | |||||||||||
Financial Services | 134,147 | — | — | — | 134,147 | 19.8 | |||||||||||
Health Care | 79,106 | — | — | — | 79,106 | 11.7 | |||||||||||
Materials and Processing | 19,403 | — | — | — | 19,403 | 2.9 | |||||||||||
Producer Durables | 85,205 | — | — | — | 85,205 | 12.6 | |||||||||||
Technology | 116,792 | — | — | — | 116,792 | 17.2 | |||||||||||
Utilities | 37,567 | — | — | — | 37,567 | 5.6 | |||||||||||
Short-Term Investments | — | 1,098 | — | 24,143 | 25,241 | 3.7 | |||||||||||
Total Investments | 654,196 | 1,098 | — | 24,143 | 679,437 | 100.3 | |||||||||||
Other Assets and Liabilities, Net | (0.3 | ) | |||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 135 | — | — | — | 135 | —* | |||||||||||
Total Other Financial Instruments** | $ | 135 | $ | — | $ | — | $ | — | $ | 135 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 9
Russell Investment Company
U.S. Core Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 135 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 2,069 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 506 | |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the | |||
Statement of Assets and Liabilities. |
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
10 U.S. Core Equity Fund
Russell Investment Company
U.S. Core Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 27 | $ | — $ | 27 | |||
Total Financial and Derivative Liabilities | 27 | — | 27 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (27 | ) | — | (27 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — $ | — |
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 11
Russell Investment Company
U.S. Core Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 553,350 |
Investments, at fair value(>) | 679,437 | |
Receivables: | ||
Dividends and interest | 551 | |
Dividends from affiliated funds | 17 | |
Investments sold | 3,488 | |
Fund shares sold | 134 | |
Prepaid expenses | 7 | |
Total assets | 683,634 | |
Liabilities | ||
Payables: | ||
Investments purchased | 4,470 | |
Fund shares redeemed | 907 | |
Accrued fees to affiliates | 466 | |
Other accrued expenses | 195 | |
Variation margin on futures contracts | 27 | |
Total liabilities | 6,065 | |
Net Assets | $ | 677,569 |
See accompanying notes which are an integral part of the financial statements.
12 U.S. Core Equity Fund
Russell Investment Company
U.S. Core Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Net Assets Consist of: | ||
Undistributed (overdistributed) net investment income | $ | 323 |
Accumulated net realized gain (loss) | 49,591 | |
Unrealized appreciation (depreciation) on: | ||
Investments | 126,087 | |
Futures contracts | 135 | |
Shares of beneficial interest | 209 | |
Additional paid-in capital | 501,224 | |
Net Assets | $ | 677,569 |
Net Asset Value, offering and redemption price per share: | ||
Net asset value per share: Class A(#) | $ | 32.57 |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 34.56 |
Class A — Net assets | $ | 30,566,772 |
Class A — Shares outstanding ($.01 par value) | 938,427 | |
Net asset value per share: Class C(#) | $ | 31.86 |
Class C — Net assets | $ | 42,452,515 |
Class C — Shares outstanding ($.01 par value) | 1,332,516 | |
Net asset value per share: Class E(#) | $ | 32.63 |
Class E — Net assets | $ | 4,708,752 |
Class E — Shares outstanding ($.01 par value) | 144,327 | |
Net asset value per share: Class I(#) | $ | 32.48 |
Class I — Net assets | $ | 315,611,147 |
Class I — Shares outstanding ($.01 par value) | 9,716,348 | |
Net asset value per share: Class S(#) | $ | 32.50 |
Class S — Net assets | $ | 250,968,923 |
Class S — Shares outstanding ($.01 par value) | 7,722,642 | |
Net asset value per share: Class Y(#) | $ | 32.47 |
Class Y — Net assets | $ | 33,260,727 |
Class Y — Shares outstanding ($.01 par value) | 1,024,302 | |
Amounts in thousands | ||
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 24,143 |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 13
Russell Investment Company
U.S. Core Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 6,359 | |
Dividends from affiliated funds | 88 | ||
Interest | 3 | ||
Total investment income | 6,450 | ||
Expenses | |||
Advisory fees | 1,886 | ||
Administrative fees | 166 | ||
Custodian fees | 91 | ||
Distribution fees - Class A | 38 | ||
Distribution fees - Class C | 160 | ||
Transfer agent fees - Class A | 30 | ||
Transfer agent fees - Class C | 43 | ||
Transfer agent fees - Class E | 6 | ||
Transfer agent fees - Class I | 249 | ||
Transfer agent fees - Class S | 257 | ||
Transfer agent fees - Class Y | —** | ||
Professional fees | 39 | ||
Registration fees | 47 | ||
Shareholder servicing fees - Class C | 53 | ||
Shareholder servicing fees - Class E | 8 | ||
Trustees’ fees | 12 | ||
Printing fees | 24 | ||
Miscellaneous | 12 | ||
Expenses before reductions | 3,121 | ||
Expense reductions | (39 | ) | |
Net expenses | 3,082 | ||
Net investment income (loss) | 3,368 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 54,263 | ||
Futures contracts | 2,069 | ||
Net realized gain (loss) | 56,332 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 25,592 | ||
Futures contracts | 506 | ||
Net change in unrealized appreciation (depreciation) | 26,098 | ||
Net realized and unrealized gain (loss) | 82,430 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 85,798 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
14 U.S. Core Equity Fund
Russell Investment Company
U.S. Core Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 3,368 | $ | 9,925 | ||
Net realized gain (loss) | 56,332 | 64,213 | ||||
Net change in unrealized appreciation (depreciation) | 26,098 | (56,455 | ) | |||
Net increase (decrease) in net assets from operations | 85,798 | 17,683 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (107 | ) | (335 | ) | ||
Class C | (31 | ) | (170 | ) | ||
Class E | (21 | ) | (80 | ) | ||
Class I | (1,799 | ) | (5,560 | ) | ||
Class S | (1,348 | ) | (4,007 | ) | ||
Class Y | (52 | ) | — | |||
From net realized gain | ||||||
Class A | (2,622 | ) | (6,287 | ) | ||
Class C | (3,861 | ) | (9,369 | ) | ||
Class E | (620 | ) | (1,460 | ) | ||
Class I | (31,119 | ) | (86,408 | ) | ||
Class S | (23,027 | ) | (64,637 | ) | ||
Net decrease in net assets from distributions | (64,607 | ) | (178,313 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (32,805 | ) | (100,399 | ) | ||
Total Net Increase (Decrease) in Net Assets | (11,614 | ) | (261,029 | ) | ||
Net Assets | ||||||
Beginning of period | 689,183 | 950,212 | ||||
End of period | $ | 677,569 | $ | 689,183 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 323 | $ | 313 |
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 15
Russell Investment Company
U.S. Core Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows: | ||||||||||||
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 40 | $ | 1,281 | 89 | $ | 2,824 | ||||||
Proceeds from reinvestment of distributions | 87 | 2,695 | 217 | 6,553 | ||||||||
Payments for shares redeemed | (93 | ) | (2,967 | ) | (297 | ) | (9,325 | ) | ||||
Net increase (decrease) | 34 | 1,009 | 9 | 52 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 50 | 1,551 | 62 | 1,902 | ||||||||
Proceeds from reinvestment of distributions | 126 | 3,804 | 317 | 9,385 | ||||||||
Payments for shares redeemed | (198 | ) | (6,192 | ) | (345 | ) | (10,587 | ) | ||||
Net increase (decrease) | (22 | ) | (837 | ) | 34 | 700 | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 2 | 68 | 11 | 341 | ||||||||
Proceeds from reinvestment of distributions | 21 | 636 | 50 | 1,527 | ||||||||
Payments for shares redeemed | (96 | ) | (3,056 | ) | (45 | ) | (1,391 | ) | ||||
Net increase (decrease) | (73 | ) | (2,352 | ) | 16 | 477 | ||||||
Class I | ||||||||||||
Proceeds from shares sold | 116 | 3,702 | 482 | 14,832 | ||||||||
Proceeds from reinvestment of distributions | 1,053 | 32,511 | 3,004 | 90,513 | ||||||||
Payments for shares redeemed | (2,566 | ) | (82,383 | ) | (5,283 | ) | (167,193 | ) | ||||
Net increase (decrease) | (1,397 | ) | (46,170 | ) | (1,797 | ) | (61,848 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 218 | 6,912 | 466 | 14,530 | ||||||||
Proceeds from reinvestment of distributions | 770 | 23,802 | 2,228 | 67,163 | ||||||||
Payments for shares redeemed | (1,515 | ) | (48,378 | ) | (3,857 | ) | (121,473 | ) | ||||
Net increase (decrease) | (527 | ) | (17,664 | ) | (1,163 | ) | (39,780 | ) | ||||
Class Y(1) | ||||||||||||
Proceeds from shares sold | 1,034 | 33,527 | — | — | ||||||||
Proceeds from reinvestment of distributions | 2 | 52 | — | — | ||||||||
Payments for shares redeemed | (12 | ) | (370 | ) | — | — | ||||||
Net increase (decrease) | 1,024 | 33,209 | — | — | ||||||||
Total increase (decrease) | (961 | ) | $ | (32,805 | ) | (2,901 | ) | $ | (100,399 | ) | ||
(1) For the period March 1, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
16 U.S. Core Equity Fund
(This page intentionally left blank)
Russell Investment Company
U.S. Core Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||||
Class A | ||||||||||||||||||
April 30, 2017* | 31.65 | .12 | 3.84 | 3.96 | (.12 | ) | (2.92 | ) | ||||||||||
October 31, 2016 | 38.50 | .34 | .45 | .79 | (.37 | ) | (7.27 | ) | ||||||||||
October 31, 2015 | 43.30 | .31 | 1.44 | 1.75 | (.44 | ) | (6.11 | ) | ||||||||||
October 31, 2014 | 38.17 | .39 | 5.12 | 5.51 | (.38 | ) | — | |||||||||||
October 31, 2013 | 30.29 | .31 | 7.88 | 8.19 | (.31 | ) | — | |||||||||||
October 31, 2012 | 27.08 | .21 | 3.23 | 3.44 | (.23 | ) | — | |||||||||||
Class C | ||||||||||||||||||
April 30, 2017* | 31.05 | — (f) | 3.76 | 3.76 | (.03 | ) | (2.92 | ) | ||||||||||
October 31, 2016 | 37.90 | .10 | .45 | .55 | (.13 | ) | (7.27 | ) | ||||||||||
October 31, 2015 | 42.78 | .02 | 1.42 | 1.44 | (.21 | ) | (6.11 | ) | ||||||||||
October 31, 2014 | 37.78 | .08 | 5.07 | 5.15 | (.15 | ) | — | |||||||||||
October 31, 2013 | 30.01 | .05 | 7.80 | 7.85 | (.08 | ) | — | |||||||||||
October 31, 2012 | 26.89 | (.01 | ) | 3.20 | 3.19 | (.07 | ) | — | ||||||||||
Class E | ||||||||||||||||||
April 30, 2017* | 31.69 | .13 | 3.84 | 3.97 | (.11 | ) | (2.92 | ) | ||||||||||
October 31, 2016 | 38.53 | .34 | .46 | .80 | (.37 | ) | (7.27 | ) | ||||||||||
October 31, 2015 | 43.33 | .31 | 1.43 | 1.74 | (.43 | ) | (6.11 | ) | ||||||||||
October 31, 2014 | 38.17 | .40 | 5.13 | 5.53 | (.37 | ) | — | |||||||||||
October 31, 2013 | 30.29 | .32 | 7.87 | 8.19 | (.31 | ) | — | |||||||||||
October 31, 2012 | 27.06 | .23 | 3.21 | 3.44 | (.21 | ) | — | |||||||||||
Class I | ||||||||||||||||||
April 30, 2017* | 31.58 | .17 | 3.82 | 3.99 | (.17 | ) | (2.92 | ) | ||||||||||
October 31, 2016 | 38.42 | .45 | .46 | .91 | (.48 | ) | (7.27 | ) | ||||||||||
October 31, 2015 | 43.24 | .44 | 1.43 | 1.87 | (.58 | ) | (6.11 | ) | ||||||||||
October 31, 2014 | 38.10 | .52 | 5.13 | 5.65 | (.51 | ) | — | |||||||||||
October 31, 2013 | 30.24 | .42 | 7.86 | 8.28 | (.42 | ) | — | |||||||||||
October 31, 2012 | 27.04 | .31 | 3.22 | 3.53 | (.33 | ) | — | |||||||||||
Class S | ||||||||||||||||||
April 30, 2017* | 31.60 | .16 | 3.83 | 3.99 | (.17 | ) | (2.92 | ) | ||||||||||
October 31, 2016 | 38.45 | .42 | .45 | .87 | (.45 | ) | (7.27 | ) | ||||||||||
October 31, 2015 | 43.26 | .41 | 1.43 | 1.84 | (.54 | ) | (6.11 | ) | ||||||||||
October 31, 2014 | 38.12 | .49 | 5.13 | 5.62 | (.48 | ) | — | |||||||||||
October 31, 2013 | 30.26 | .39 | 7.86 | 8.25 | (.39 | ) | — | |||||||||||
October 31, 2012 | 27.04 | .28 | 3.23 | 3.51 | (.29 | ) | — | |||||||||||
Class Y | ||||||||||||||||||
April 30, 2017(h) | 32.22 | — (f) | .33 | .33 | (.08 | ) | — | |||||||||||
October 31, 2016(j) | — | — | — | — | — | — | ||||||||||||
October 31, 2015 | 43.19 | .26 | 2.13 | 2.39 | (.38 | ) | (6.11 | ) | ||||||||||
October 31, 2014 | 38.06 | .58 | 5.11 | 5.69 | (.56 | ) | — | |||||||||||
October 31, 2013 | 30.21 | .46 | 7.85 | 8.31 | (.46 | ) | — | |||||||||||
October 31, 2012 | 27.02 | .33 | 3.23 | 3.56 | (.37 | ) | — | |||||||||||
See accompanying notes which are an integral part of the financial statements.
18 U.S. Core Equity Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | ||||||||||
(3.04 | ) | 32.57 | 13.02 | 30,567 | 1.11 | 1.11 | .76 | 56 | ||||||||||
(7.64 | ) | 31.65 | 3.15 | 28,620 | 1.08 | 1.08 | 1.07 | 73 | ||||||||||
(6.55 | ) | 38.50 | 4.17 | 34,474 | 1.09 | 1.09 | .79 | 90 | ||||||||||
(.38 | ) | 43.30 | 14.49 | 36,334 | 1.08 | 1.08 | .95 | 73 | ||||||||||
(.31 | ) | 38.17 | 27.19 | 33,491 | 1.07 | 1.07 | .90 | 97 | ||||||||||
(.23 | ) | 30.29 | 12.73 | 29,349 | 1.07 | 1.07 | .72 | 117 | ||||||||||
(2.95 | ) | 31.86 | 12.61 | 42,453 | 1.86 | 1.86 | .02 | 56 | ||||||||||
(7.40 | ) | 31.05 | 2.42 | 42,062 | 1.83 | 1.83 | .32 | 73 | ||||||||||
(6.32 | ) | 37.90 | 3.39 | 50,046 | 1.84 | 1.84 | .04 | 90 | ||||||||||
(.15 | ) | 42.78 | 13.66 | 54,530 | 1.83 | 1.83 | .21 | 73 | ||||||||||
(.08 | ) | 37.78 | 26.23 | 55,105 | 1.82 | 1.82 | .16 | 97 | ||||||||||
(.07 | ) | 30.01 | 11.89 | 53,222 | 1.82 | 1.82 | (.02 | ) | 117 | |||||||||
(3.03 | ) | 32.63 | 13.03 | 4,709 | 1.11 | 1.11 | .80 | 56 | ||||||||||
(7.64 | ) | 31.69 | 3.18 | 6,889 | 1.08 | 1.08 | 1.07 | 73 | ||||||||||
(6.54 | ) | 38.53 | 4.14 | 7,752 | 1.09 | 1.09 | .80 | 90 | ||||||||||
(.37 | ) | 43.33 | 14.52 | 11,449 | 1.08 | 1.08 | .97 | 73 | ||||||||||
(.31 | ) | 38.17 | 27.18 | 19,657 | 1.07 | 1.06 | .95 | 97 | ||||||||||
(.21 | ) | 30.29 | 12.78 | 25,075 | 1.07 | 1.02 | .81 | 117 | ||||||||||
(3.09 | ) | 32.48 | 13.16 | 315,610 | .81 | .79 | 1.10 | 56 | ||||||||||
(7.75 | ) | 31.58 | 3.54 | 350,921 | .75 | .75 | 1.41 | 73 | ||||||||||
(6.69 | ) | 38.42 | 4.48 | 496,057 | .76 | .76 | 1.12 | 90 | ||||||||||
(.51 | ) | 43.24 | 14.90 | 572,064 | .75 | .75 | 1.28 | 73 | ||||||||||
(.42 | ) | 38.10 | 27.59 | 579,477 | .74 | .74 | 1.23 | 97 | ||||||||||
(.33 | ) | 30.24 | 13.13 | 597,630 | .74 | .74 | 1.07 | 117 | ||||||||||
(3.09 | ) | 32.50 | 13.16 | 250,969 | .87 | .85 | 1.03 | 56 | ||||||||||
(7.72 | ) | 31.60 | 3.43 | 260,691 | .83 | .83 | 1.33 | 73 | ||||||||||
(6.65 | ) | 38.45 | 4.42 | 361,883 | .84 | .84 | 1.04 | 90 | ||||||||||
(.48 | ) | 43.26 | 14.80 | 428,952 | .83 | .83 | 1.20 | 73 | ||||||||||
(.39 | ) | 38.12 | 27.51 | 450,265 | .82 | .82 | 1.15 | 97 | ||||||||||
(.29 | ) | 30.26 | 13.01 | 440,333 | .82 | .82 | .99 | 117 | ||||||||||
(.08 | ) | 32.47 | (.37 | ) | 33,261 | .66 | .66 | .61 | 56 | |||||||||
— | — | — | — | — | — | — | — | |||||||||||
(6.49 | ) | 39.09 | 5.88 | 12,557 | .64 | .64 | 1.30 | 90 | ||||||||||
(.56 | ) | 43.19 | 15.02 | 707,630 | .63 | .63 | 1.42 | 73 | ||||||||||
(.46 | ) | 38.06 | 27.74 | 989,520 | .62 | .62 | 1.35 | 97 | ||||||||||
(.37 | ) | 30.21 | 13.24 | 1,031,582 | .64 | .64 | 1.16 | 117 |
See accompanying notes which are an integral part of the financial statements.
U.S. Core Equity Fund 19
Russell Investment Company
U.S. Core Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 305,709 |
Administration fees | 26,822 | |
Distribution fees | 32,216 | |
Shareholder servicing fees | 9,609 | |
Transfer agent fees | 87,561 | |
Trustee fees | 4,322 | |
$ | 466,239 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||||
affiliated company are as follows: | |||||||||||||||||||
Fair Value, | Change in | ||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||||
U.S. Cash Management Fund | $ | 32,275 | $ | 147,782 | $ | 155,917 | $ | 6 | $ | (3 | ) | $ | 24,143 | $ | 88 | $ | — | ||
$ | 32,275 | $ | 147,782 | $ | 155,917 | $ | 6 | $ | (3 | ) | $ | 24,143 | $ | 88 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 558,031,844 | |||
Unrealized Appreciation | $ | 131,468,438 | |||
Unrealized Depreciation | (10,063,414 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 121,405,024 |
See accompanying notes which are an integral part of the financial statements.
20 U.S. Core Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,110.10 | $ | 1,018.05 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 7.12 | $ | 6.80 | |
Fund is from November 1, 2015 to April 30, 2016. | * Expenses are equal to the Fund's annualized expense ratio of 1.36% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,105.90 | $ | 1,014.33 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 11.02 | $ | 10.54 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 2.11% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,110.20 | $ | 1,018.05 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 7.12 | $ | 6.80 | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 1.36% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
U.S. Defensive Equity Fund 21
Russell Investment Company
U.S. Defensive Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class I | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,111.70 | $ | 1,019.64 | ||
Expenses Paid During Period* | $ | 5.45 | $ | 5.21 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.04% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,111.50 | $ | 1,019.34 | ||
Expenses Paid During Period* | $ | 5.76 | $ | 5.51 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.10% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,112.70 | $ | 1,020.28 | ||
Expenses Paid During Period* | $ | 4.77 | $ | 4.56 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.91% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
22 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 93.3% | Church & Dwight Co., Inc. | 3,016 | 149 | ||||
Consumer Discretionary - 11.4% | Clorox Co. (The) | 11,685 | 1,562 | ||||
Aaron's, Inc. Class A | 22,900 | 823 | Coca-Cola Co. (The) | 86,978 | 3,753 | ||
Amazon.com, Inc.(Æ) | 2,139 | 1,979 | Colgate-Palmolive Co. | 1,824 | 131 | ||
AMC Networks, Inc. Class A(Æ) | 16,600 | 991 | Conagra Brands, Inc. | 1,822 | 71 | ||
Aramark | 3,003 | 110 | Constellation Brands, Inc. Class A | 3,755 | 648 | ||
AutoZone, Inc.(Æ) | 2,840 | 1,966 | CVS Health Corp. | 69,238 | 5,709 | ||
Avon Products, Inc.(Æ) | 92,000 | 446 | Dr Pepper Snapple Group, Inc. | 23,551 | 2,159 | ||
Brinker International, Inc. | 28,300 | 1,251 | General Mills, Inc. | 3,676 | 211 | ||
Brunswick Corp. | 8,900 | 505 | Hershey Co. (The) | 10,380 | 1,123 | ||
Cable One, Inc. | 1,235 | 842 | Hormel Foods Corp. | 2,158 | 76 | ||
Carnival Corp. | 1,278 | 79 | JM Smucker Co. (The) | 19,949 | 2,527 | ||
Charter Communications, Inc. Class A(Æ) | 633 | 218 | Kimberly-Clark Corp. | 12,346 | 1,602 | ||
Comcast Corp. Class A | 75,347 | 2,953 | Kraft Heinz Co. (The) | 4,978 | 450 | ||
Costco Wholesale Corp. | 10,370 | 1,841 | Kroger Co. (The) | 123,034 | 3,648 | ||
Darden Restaurants, Inc. | 12,696 | 1,081 | McCormick & Co., Inc. | 1,484 | 148 | ||
Dollar General Corp. | 74,794 | 5,439 | Molson Coors Brewing Co. Class B | 9,300 | 892 | ||
Domino's Pizza, Inc. | 4,930 | 894 | Mondelez International, Inc. Class A | 73,382 | 3,304 | ||
Estee Lauder Cos., Inc. (The) Class A | 22,930 | 1,998 | PepsiCo, Inc.(Û) | 74,301 | 8,416 | ||
Ford Motor Co. | 9,080 | 104 | Performance Food Group Co.(Æ) | 26,100 | 650 | ||
Genuine Parts Co. | 1,938 | 178 | Philip Morris International, Inc. | 66,568 | 7,379 | ||
Home Depot, Inc. (The) | 18,181 | 2,838 | Procter & Gamble Co. (The) | 69,118 | 6,035 | ||
Interpublic Group of Cos., Inc. (The) | 4,463 | 105 | Reynolds American, Inc. | 77,532 | 5,001 | ||
John Wiley & Sons, Inc. Class A | 5,700 | 300 | Sysco Corp. | 33,892 | 1,792 | ||
Leggett & Platt, Inc. | 1,450 | 76 | Unilever NV | 76,820 | 4,014 | ||
Lowe's Cos., Inc. | 82,142 | 6,972 | United Natural Foods, Inc.(Æ) | 21,600 | 897 | ||
McDonald's Corp. | 15,416 | 2,157 | US Foods Holding Corp.(Æ) | 19,500 | 550 | ||
Michaels Cos., Inc. (The)(Æ) | 23,000 | 537 | Walgreens Boots Alliance, Inc. | 9,775 | 846 | ||
Mohawk Industries, Inc.(Æ) | 831 | 195 | |||||
Nike, Inc. Class B | 30,881 | 1,710 | 67,746 | ||||
NVR, Inc.(Æ) | 767 | 1,619 | |||||
Omnicom Group, Inc. | 34,283 | 2,815 | Energy - 4.7% | ||||
Chevron Corp. | 49,889 | 5,323 | |||||
O'Reilly Automotive, Inc.(Æ) | 9,354 | 2,321 | Core Laboratories NV | 20,478 | 2,269 | ||
Ross Stores, Inc. | 13,834 | 899 | Exxon Mobil Corp.(Û) | 106,109 | 8,664 | ||
Scientific Games Corp. Class A(Æ) | 9,100 | 216 | Occidental Petroleum Corp. | 71,820 | 4,420 | ||
Shutterfly, Inc.(Æ) | 7,900 | 410 | Phillips 66 | 2,982 | 238 | ||
Starbucks Corp. | 85,693 | 5,148 | Royal Dutch Shell PLC Class A - ADR | 60,112 | 3,137 | ||
Target Corp. | 6,563 | 367 | Schlumberger, Ltd. | 37,094 | 2,692 | ||
Thomson Reuters Corp. | 2,537 | 115 | TransCanada Corp. | 16,494 | 766 | ||
Time Warner, Inc. | 4,067 | 404 | Valero Energy Corp. | 4,900 | 317 | ||
Time, Inc. | 11,700 | 178 | World Fuel Services Corp. | 19,800 | 729 | ||
TJX Cos., Inc. | 69,822 | 5,490 | |||||
Tractor Supply Co. | 5,300 | 328 | 28,555 | ||||
Twenty-First Century Fox, Inc. Class A | 33,468 | 1,022 | |||||
Vail Resorts, Inc. | 586 | 116 | Financial Services - 18.6% | ||||
Visteon Corp.(Æ) | 10,400 | 1,071 | Aflac, Inc. | 55,791 | 4,177 | ||
Wal-Mart Stores, Inc.(Û) | 45,756 | 3,441 | AGNC Investment Corp. | 3,932 | 83 | ||
Walt Disney Co. (The)(Û) | 43,913 | 5,077 | Alexandria Real Estate Equities, Inc.(ö) | 934 | 105 | ||
Wyndham Worldwide Corp. | 841 | 80 | Alleghany Corp.(Æ) | 287 | 175 | ||
Allied World Assurance Co. Holdings AG | 2,046 | 109 | |||||
69,705 | Allstate Corp. (The)(Û) | 32,443 | 2,637 | ||||
American Campus Communities, Inc.(ö) | 2,188 | 104 | |||||
Consumer Staples - 11.1% | American Express Co. | 3,210 | 254 | ||||
Altria Group, Inc. | 16,534 | 1,186 | American Financial Group, Inc. | 1,148 | 112 | ||
Archer-Daniels-Midland Co. | 17,443 | 798 | American International Group, Inc. | 33,230 | 2,024 | ||
Brown-Forman Corp. Class A - ADR | 2,524 | 121 | American Tower Corp.(ö) | 46,317 | 5,834 | ||
Brown-Forman Corp. Class B - ADR | 36,447 | 1,725 | Aon PLC | 677 | 81 | ||
Campbell Soup Co. | 1,713 | 99 | Arch Capital Group, Ltd.(Æ) | 1,187 | 115 | ||
Casey's General Stores, Inc. | 656 | 74 | Arthur J Gallagher & Co. | 24,842 | 1,386 | ||
See accompanying notes which are an integral part of the financial statements. |
U.S. Defensive Equity Fund 23
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Aspen Insurance Holdings, Ltd. | 22,638 | 1,185 | Mid-America Apartment Communities, Inc. | ||||
Assurant, Inc. | 8,419 | 810 | (ö) | 1,079 | 107 | ||
AvalonBay Communities, Inc.(ö) | 6,181 | 1,173 | Monogram Residential Trust, Inc.(ö) | 81,100 | 826 | ||
Axis Capital Holdings, Ltd. | 4,249 | 280 | Moody's Corp. | 18,359 | 2,172 | ||
BancorpSouth, Inc. | 16,700 | 509 | Nasdaq, Inc. | 1,614 | 111 | ||
Bank of America Corp. | 9,142 | 213 | National Retail Properties, Inc.(ö) | 2,435 | 103 | ||
Bank of New York Mellon Corp. (The) | 6,679 | 314 | Old Republic International Corp. | 5,319 | 110 | ||
BB&T Corp. | 11,811 | 510 | Paramount Group, Inc.(ö) | 10,008 | 164 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 53,645 | 8,863 | People's United Financial, Inc. | 10,051 | 176 | ||
BlackRock, Inc. Class A | 946 | 364 | Piedmont Office Realty Trust, Inc. Class A(ö) | 3,308 | 72 | ||
Boston Properties, Inc.(ö) | 11,319 | 1,433 | PNC Financial Services Group, Inc. (The)(Û) | 27,525 | 3,296 | ||
Brandywine Realty Trust(ö) | 15,846 | 269 | Progressive Corp. (The) | 38,548 | 1,531 | ||
Broadridge Financial Solutions, Inc. | 3,829 | 268 | Prologis, Inc.(ö) | 1,911 | 104 | ||
Camden Property Trust(ö) | 11,729 | 966 | Public Storage(ö) | 2,928 | 613 | ||
Capital One Financial Corp. | 2,205 | 177 | Realty Income Corp.(ö) | 747 | 44 | ||
CBOE Holdings, Inc. | 14,800 | 1,220 | Regency Centers Corp.(ö) | 1,562 | 99 | ||
Charles Schwab Corp. (The) | 3,811 | 148 | Reinsurance Group of America, Inc. Class A | 11,790 | 1,474 | ||
Chubb, Ltd. | 14,312 | 1,964 | RenaissanceRe Holdings, Ltd. | 1,964 | 279 | ||
Citigroup, Inc. | 1,811 | 107 | Simon Property Group, Inc.(ö)(Û) | 14,847 | 2,454 | ||
CME Group, Inc. Class A | 850 | 99 | SL Green Realty Corp.(ö) | 9,320 | 978 | ||
Columbia Property Trust, Inc.(ö) | 9,500 | 214 | Starwood Property Trust, Inc.(ö) | 8,557 | 194 | ||
Comerica, Inc. | 14,400 | 1,018 | State Street Corp. | 69,179 | 5,804 | ||
DCT Industrial Trust, Inc.(ö) | 1,451 | 73 | SunTrust Banks, Inc. | 12,600 | 716 | ||
DDR Corp.(ö) | 79,441 | 859 | Synchrony Financial | 21,200 | 589 | ||
Discover Financial Services | 1,543 | 97 | T Rowe Price Group, Inc. | 1,049 | 74 | ||
Douglas Emmett, Inc.(ö) | 2,778 | 105 | Torchmark Corp. | 1,439 | 110 | ||
Dun & Bradstreet Corp. (The) | 9,900 | 1,085 | Travelers Cos., Inc. (The) | 17,562 | 2,136 | ||
East West Bancorp, Inc. | 23,800 | 1,292 | Two Harbors Investment Corp.(ö) | 7,505 | 75 | ||
Equifax, Inc. | 911 | 123 | UDR, Inc.(ö) | 3,056 | 114 | ||
Equity Residential(ö) | 3,185 | 206 | US Bancorp(Û) | 147,744 | 7,576 | ||
Essex Property Trust, Inc.(ö) | 612 | 150 | Validus Holdings, Ltd. | 3,491 | 193 | ||
Evercore Partners, Inc. Class A | 9,900 | 730 | Visa, Inc. Class A | 52,353 | 4,775 | ||
Everest Re Group, Ltd. | 4,702 | 1,184 | Vornado Realty Trust(ö) | 1,002 | 96 | ||
FactSet Research Systems, Inc. | 465 | 76 | Voya Financial, Inc. | 28,618 | 1,070 | ||
Federal Realty Investment Trust(ö) | 1,034 | 135 | Weingarten Realty Investors(ö) | 2,139 | 70 | ||
Fidelity National Information Services, Inc. | 13,278 | 1,118 | Wells Fargo & Co.(Û) | 128,351 | 6,910 | ||
Fiserv, Inc.(Æ) | 5,111 | 609 | Welltower, Inc.(ö) | 1,047 | 75 | ||
FNF Group | 2,852 | 117 | Western Union Co. (The) | 5,619 | 112 | ||
GGP, Inc.(Æ) | 4,629 | 100 | White Mountains Insurance Group, Ltd. | 218 | 187 | ||
Hanover Insurance Group, Inc. (The) | 1,813 | 160 | WP Carey, Inc.(ö) | 1,734 | 109 | ||
Hartford Financial Services Group, Inc. | 35,702 | 1,727 | WR Berkley Corp. | 1,751 | 119 | ||
Healthcare Trust of America, Inc. Class A(ö) | 2,276 | 73 | XL Group, Ltd. | 53,324 | 2,232 | ||
Highwoods Properties, Inc.(ö) | 2,063 | 105 | 113,443 | ||||
Intercontinental Exchange, Inc. | 21,795 | 1,312 | |||||
Jack Henry & Associates, Inc. | 1,194 | 116 | Health Care - 13.7% | ||||
JPMorgan Chase & Co. | 7,486 | 651 | Abbott Laboratories | 142,306 | 6,210 | ||
KeyCorp | 20,521 | 374 | Aetna, Inc. | 9,021 | 1,218 | ||
Kimco Realty Corp.(ö) | 4,416 | 90 | Agilent Technologies, Inc. | 28,028 | 1,542 | ||
Lamar Advertising Co. Class A(ö) | 1,418 | 102 | Allergan PLC(Æ) | 18,338 | 4,472 | ||
Lincoln National Corp. | 6,000 | 396 | Allscripts Healthcare Solutions, Inc.(Æ) | 27,000 | 323 | ||
Loews Corp. | 5,935 | 277 | AmerisourceBergen Corp. Class A | 48,498 | 3,979 | ||
M&T Bank Corp. | 1,476 | 229 | Amgen, Inc. | 32,987 | 5,388 | ||
Macerich Co. (The)(ö) | 2,728 | 170 | Anthem, Inc. | 7,710 | 1,372 | ||
Markel Corp.(Æ) | 4,400 | 4,267 | Baxter International, Inc.(Û) | 43,713 | 2,434 | ||
Marsh & McLennan Cos., Inc. | 65,615 | 4,863 | Becton Dickinson and Co. | 20,360 | 3,807 | ||
MasterCard, Inc. Class A(Û) | 22,790 | 2,651 | Biogen, Inc.(Æ) | 1,782 | 483 | ||
MetLife, Inc. | 6,358 | 329 | Bio-Rad Laboratories, Inc. Class A(Æ) | 628 | 137 | ||
MFA Financial, Inc.(ö) | 17,187 | 143 |
See accompanying notes which are an integral part of the financial statements.
24 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Bio-Techne Corp. | 1,040 | 111 | Accenture PLC Class A | 38,843 | 4,712 | ||
Boston Scientific Corp.(Æ) | 10,451 | 276 | AGCO Corp. | 14,500 | 928 | ||
Bristol-Myers Squibb Co. | 13,806 | 774 | Ametek, Inc. | 2,000 | 114 | ||
Bruker Corp. | 17,800 | 434 | AO Smith Corp. | 27,700 | 1,492 | ||
Cardinal Health, Inc. | 19,300 | 1,401 | Automatic Data Processing, Inc. | 64,456 | 6,736 | ||
Celgene Corp.(Æ) | 747 | 93 | Avery Dennison Corp. | 4,178 | 348 | ||
Centene Corp.(Æ) | 9,900 | 737 | Babcock & Wilcox Co. (The) Class W(Æ) | 23,776 | 1,169 | ||
Dentsply Sirona, Inc. | 5,163 | 327 | Boeing Co. (The) | 6,957 | 1,286 | ||
Eli Lilly & Co.(Û) | 48,565 | 3,986 | Canadian Pacific Railway, Ltd. | 838 | 128 | ||
Express Scripts Holding Co.(Æ) | 22,600 | 1,386 | Carlisle Cos., Inc. | 1,599 | 162 | ||
Gilead Sciences, Inc. | 15,744 | 1,079 | CH Robinson Worldwide, Inc. | 2,627 | 191 | ||
Henry Schein, Inc.(Æ) | 1,161 | 202 | Cintas Corp. | 1,004 | 123 | ||
Humana, Inc. | 1,519 | 337 | Danaher Corp. | 14,680 | 1,224 | ||
Johnson & Johnson(Û) | 111,326 | 13,746 | Eaton Corp. PLC | 2,021 | 153 | ||
Laboratory Corp. of America Holdings(Æ) | 3,129 | 439 | EMCOR Group, Inc. | 17,600 | 1,157 | ||
LifePoint Health, Inc.(Æ) | 16,700 | 1,038 | Emerson Electric Co. | 1,918 | 116 | ||
Masimo Corp.(Æ) | 8,300 | 853 | Expeditors International of Washington, Inc. | 1,934 | 108 | ||
MEDNAX, Inc.(Æ) | 2,959 | 179 | FedEx Corp. | 4,660 | 884 | ||
Medtronic PLC | 9,801 | 814 | Fluor Corp. | 20,700 | 1,062 | ||
Merck & Co., Inc.(Û) | 133,380 | 8,314 | Fortive Corp. | 31,809 | 2,012 | ||
PerkinElmer, Inc. | 2,015 | 120 | General Dynamics Corp. | 10,643 | 2,062 | ||
Pfizer, Inc. | 96,572 | 3,275 | General Electric Co. | 43,504 | 1,261 | ||
Quest Diagnostics, Inc. | 4,120 | 435 | Genpact, Ltd. | 6,988 | 171 | ||
ResMed, Inc. | 1,531 | 104 | Honeywell International, Inc. | 66,062 | 8,663 | ||
Stryker Corp. | 5,935 | 809 | Hub Group, Inc. Class A(Æ) | 11,200 | 438 | ||
Thermo Fisher Scientific, Inc. | 5,195 | 858 | Hubbell, Inc. Class B | 628 | 71 | ||
UnitedHealth Group, Inc. | 48,831 | 8,540 | Illinois Tool Works, Inc. | 42,174 | 5,825 | ||
Varex Imaging Corp.(Æ) | 2,171 | 73 | Insperity, Inc. | 3,800 | 347 | ||
Varian Medical Systems, Inc.(Æ) | 1,239 | 112 | Jacobs Engineering Group, Inc. | 13,800 | 758 | ||
Vertex Pharmaceuticals, Inc.(Æ) | 1,500 | 177 | JB Hunt Transport Services, Inc. | 2,883 | 258 | ||
WellCare Health Plans, Inc.(Æ) | 6,310 | 968 | Kansas City Southern | 11,945 | 1,076 | ||
Zimmer Biomet Holdings, Inc. | 1,874 | 224 | L3 Technologies, Inc. | 3,540 | 608 | ||
83,586 | Landstar System, Inc. | 16,600 | 1,418 | ||||
Lockheed Martin Corp. | 1,704 | 459 | |||||
Materials and Processing - 1.9% | ManpowerGroup, Inc. | 12,173 | 1,229 | ||||
Air Products & Chemicals, Inc. | 870 | 122 | Mettler-Toledo International, Inc.(Æ) | 4,769 | 2,449 | ||
AptarGroup, Inc. | 3,877 | 311 | Moog, Inc. Class A(Æ) | 3,700 | 254 | ||
Ashland Global Holdings, Inc. | 601 | 74 | Navistar International Corp.(Æ) | 10,900 | 293 | ||
Bemis Co., Inc. | 4,380 | 197 | Northrop Grumman Corp. | 1,061 | 261 | ||
Commercial Metals Co. | 6,700 | 125 | Paychex, Inc. | 2,467 | 146 | ||
Crown Holdings, Inc.(Æ) | 7,774 | 436 | Progressive Waste Solutions, Ltd. | 2,530 | 233 | ||
Dow Chemical Co. (The) | 4,041 | 254 | Quanta Services, Inc.(Æ) | 25,500 | 904 | ||
Eastman Chemical Co. | 1,149 | 92 | Raytheon Co. | 3,719 | 577 | ||
Ecolab, Inc. | 23,487 | 3,033 | Republic Services, Inc. Class A | 7,490 | 472 | ||
EI du Pont de Nemours & Co. | 12,847 | 1,025 | Robert Half International, Inc. | 33,000 | 1,520 | ||
International Flavors & Fragrances, Inc. | 3,666 | 508 | Rockwell Automation, Inc. | 4,410 | 694 | ||
NewMarket Corp. | 1,298 | 611 | Rockwell Collins, Inc. | 2,382 | 248 | ||
PPG Industries, Inc. | 703 | 77 | Roper Technologies, Inc. | 13,624 | 2,980 | ||
Praxair, Inc. | 29,337 | 3,666 | Sensata Technologies Holding NV(Æ) | 35,772 | 1,473 | ||
Sherwin-Williams Co. (The) | 2,053 | 687 | Snap-on, Inc. | 4,404 | 738 | ||
Silgan Holdings, Inc. | 1,489 | 90 | Stanley Black & Decker, Inc. | 10,472 | 1,426 | ||
Sonoco Products Co. | 1,446 | 76 | Textron, Inc. | 21,200 | 989 | ||
Univar, Inc.(Æ) | 11,200 | 334 | Toro Co. (The) | 17,600 | 1,143 | ||
TransDigm Group, Inc. | 6,948 | 1,714 | |||||
11,718 | Union Pacific Corp.(Û) | 31,682 | 3,547 | ||||
United Parcel Service, Inc. Class B | 5,769 | 620 | |||||
Producer Durables - 13.4% | United Technologies Corp. | 12,823 | 1,526 | ||||
3M Co. | 25,646 | 5,022 | Verisk Analytics, Inc. Class A(Æ) | 928 | 77 |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 25
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) or | Value | Amount ($) or | Value | |||||
Shares | $ | Shares | $ | |||||
Waste Management, Inc. | 18,523 | 1,348 | Zynga, Inc. Class A(Æ) | 347,400 | 1,004 | |||
Werner Enterprises, Inc. | 9,100 | 248 | 81,669 | |||||
WW Grainger, Inc. | 11,324 | 2,182 | ||||||
81,833 | Utilities - 5.1% | |||||||
Alliant Energy Corp. | 2,927 | 115 | ||||||
Technology - 13.4% | Ameren Corp. | 10,633 | 582 | |||||
Adobe Systems, Inc.(Æ) | 25,868 | 3,459 | American Electric Power Co., Inc. | 23,311 | 1,581 | |||
Alphabet, Inc. Class A(Æ) | 3,305 | 3,055 | American Water Works Co., Inc. | 23,839 | 1,902 | |||
Alphabet, Inc. Class C(Æ)(Û) | 12,953 | 11,735 | Aqua America, Inc. | 2,247 | 74 | |||
Amdocs, Ltd. | 6,193 | 379 | AT&T, Inc. | 102,206 | 4,050 | |||
Amphenol Corp. Class A | 4,866 | 352 | Atmos Energy Corp. | 1,408 | 114 | |||
Analog Devices, Inc. | 17,049 | 1,299 | CenterPoint Energy, Inc. | 3,888 | 111 | |||
Ansys, Inc.(Æ) | 1,024 | 113 | CMS Energy Corp. | 14,129 | 642 | |||
Apple, Inc. | 68,865 | 9,893 | Consolidated Edison, Inc. | 26,148 | 2,073 | |||
Arrow Electronics, Inc.(Æ) | 18,400 | 1,297 | Dominion Resources, Inc. | 3,568 | 276 | |||
Aspen Technology, Inc.(Æ) | 18,200 | 1,119 | DTE Energy Co. | 5,244 | 548 | |||
Avnet, Inc. | 29,489 | 1,141 | Duke Energy Corp.(Û) | 32,126 | 2,650 | |||
Broadcom, Ltd. | 1,709 | 377 | Edison International | 18,429 | 1,473 | |||
CA, Inc. | 8,945 | 294 | Entergy Corp. | 954 | 73 | |||
Cadence Design Systems, Inc.(Æ) | 51,200 | 1,668 | Eversource Energy | 24,486 | 1,455 | |||
Cirrus Logic, Inc.(Æ) | 10,000 | 644 | Exelon Corp. | 7,442 | 258 | |||
Cisco Systems, Inc. | 27,375 | 933 | Hawaiian Electric Industries, Inc. | 2,186 | 73 | |||
Cognizant Technology Solutions Corp. Class | NextEra Energy, Inc. | 12,818 | 1,712 | |||||
A | 958 | 58 | NiSource, Inc. | 52,528 | 1,274 | |||
CommVault Systems, Inc.(Æ) | 10,480 | 529 | OGE Energy Corp. | 3,019 | 105 | |||
Dell Technologies, Inc. Class V(Æ) | 10,300 | 691 | PG&E Corp. | 22,180 | 1,488 | |||
F5 Networks, Inc.(Æ) | 9,100 | 1,175 | Pinnacle West Capital Corp. | 4,068 | 346 | |||
Facebook, Inc. Class A(Æ) | 22,375 | 3,362 | PPL Corp. | 2,990 | 114 | |||
FireEye, Inc.(Æ) | 7,900 | 99 | Public Service Enterprise Group, Inc. | 9,066 | 399 | |||
Gartner, Inc.(Æ) | 13,000 | 1,483 | SCANA Corp. | 1,842 | 122 | |||
Hewlett Packard Enterprise Co. | 9,400 | 175 | Sempra Energy | 1,744 | 197 | |||
Intel Corp.(Û) | 109,266 | 3,950 | Southern Co. (The) | 5,109 | 254 | |||
InterDigital, Inc. | 3,300 | 297 | T-Mobile US, Inc.(Æ) | 866 | 58 | |||
International Business Machines Corp. | 10,675 | 1,711 | US Cellular Corp.(Æ) | 9,698 | 380 | |||
Intuit, Inc. | 34,068 | 4,266 | Vectren Corp. | 1,241 | 74 | |||
iRobot Corp.(Æ) | 6,800 | 542 | Verizon Communications, Inc.(Û) | 97,324 | 4,468 | |||
Juniper Networks, Inc. | 41,800 | 1,257 | WEC Energy Group, Inc. | 2,785 | 169 | |||
Manhattan Associates, Inc.(Æ) | 19,200 | 896 | Westar Energy, Inc. Class A | 2,651 | 138 | |||
Maxim Integrated Products, Inc. | 1,678 | 74 | Xcel Energy, Inc. | 31,952 | 1,440 | |||
Microchip Technology, Inc. | 26,602 | 2,011 | 30,788 | |||||
Microsoft Corp. | 42,117 | 2,883 | ||||||
Oracle Corp. | 116,277 | 5,228 | Total Common Stocks | |||||
Palo Alto Networks, Inc.(Æ) | 5,380 | 583 | ||||||
Plantronics, Inc. | 9,423 | 514 | (cost $492,305) | 569,043 | ||||
QUALCOMM, Inc. | 33,800 | 1,816 | ||||||
Semtech Corp.(Æ) | 9,200 | 314 | Short-Term Investments - 12.3% | |||||
Silicon Laboratories, Inc.(Æ) | 1,100 | 78 | U.S. Cash Management Fund | 60,041,665 | (8) | 60,053 | ||
Splunk, Inc.(Æ) | 5,100 | 328 | United States Treasury Bills | |||||
Synaptics, Inc.(Æ) | 14,000 | 767 | 0.669% due 06/01/17(ç)(~) | 7,000 | 6,996 | |||
SYNNEX Corp. | 2,810 | 305 | ||||||
Synopsys, Inc.(Æ) | 22,100 | 1,629 | 0.699% due 06/22/17(ç)(~) | 8,000 | 7,992 | |||
Tableau Software, Inc. Class A(Æ) | 3,300 | 177 | Total Short-Term Investments | |||||
TE Connectivity, Ltd. | 10,057 | 778 | (cost $75,036) | 75,041 | ||||
Tech Data Corp.(Æ) | 12,000 | 1,148 | ||||||
Texas Instruments, Inc. | 24,427 | 1,934 | Total Investments 104.5% | |||||
Twitter, Inc.(Æ) | 26,000 | 428 | ||||||
Viavi Solutions, Inc. Class W(Æ) | 142,075 | 1,421 | (identified cost $567,341) | 644,084 |
See accompanying notes which are an integral part of the financial statements.
26 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) or | Value | Amount ($) or | Value | ||||||||
Shares | $ | Shares | $ | ||||||||
Securities Sold Short - (6.7)% | RLI Corp. | (12,400 | ) | (709 | ) | ||||||
Consumer Discretionary - (1.5)% | Sun Communities, Inc.(ö) | (8,300 | ) | (694 | ) | ||||||
CarMax, Inc.(Æ) | (9,700 | ) | (567 | ) | |||||||
TFS Financial Corp. | (3,500 | ) | (58 | ) | |||||||
Coty, Inc. Class A | (39,700 | ) | (709 | ) | |||||||
Weyerhaeuser Co.(ö) | (22,000 | ) | (745 | ) | |||||||
Dorman Products, Inc.(Æ) | (9,200 | ) | (765 | ) | |||||||
(13,113 | ) | ||||||||||
First Cash Financial Services, Inc. | (14,700 | ) | (764 | ) | Health Care - (0.9)% | ||||||
Hillenbrand, Inc. | (15,201 | ) | (561 | ) | Acadia Pharmaceuticals, Inc.(Æ) | (2,900 | ) | (100 | ) | ||
ILG, Inc. | (37,210 | ) | (897 | ) | Aerie Pharmaceuticals, Inc.(Æ) | (1,200 | ) | (53 | ) | ||
Las Vegas Sands Corp. | (4,900 | ) | (289 | ) | AMN Healthcare Services, Inc.(Æ) | (3,300 | ) | (135 | ) | ||
Liberty Broadband Corp. Class A(Æ) | (10,367 | ) | (932 | ) | Avexis, Inc.(Æ) | (1,100 | ) | (88 | ) | ||
Liberty Media Corp. Class A(Æ) | (5,900 | ) | (200 | ) | Bluebird Bio, Inc.(Æ) | (1,450 | ) | (129 | ) | ||
Marriott International, Inc. Class A | (9,100 | ) | (859 | ) | Cambrex Corp.(Æ) | (3,300 | ) | (196 | ) | ||
Marriott Vacations Worldwide Corp. | (1,740 | ) | (192 | ) | Cantel Medical Corp. | (5,500 | ) | (409 | ) | ||
Newell Rubbermaid, Inc. | (14,800 | ) | (707 | ) | Cotiviti Holdings, Inc.(Æ) | (3,200 | ) | (134 | ) | ||
Stamps.com, Inc.(Æ) | (1,340 | ) | (142 | ) | Intercept Pharmaceuticals, Inc.(Æ) | (570 | ) | (64 | ) | ||
Tempur Sealy International, Inc.(Æ) | (2,600 | ) | (122 | ) | Intrexon Corp.(Æ) | (4,700 | ) | (98 | ) | ||
TiVo Corp. | (8,500 | ) | (168 | ) | Juno Therapeutics, Inc.(Æ) | (8,100 | ) | (202 | ) | ||
TRI Pointe Group, Inc.(Æ) | (23,100 | ) | (288 | ) | Kite Pharma, Inc.(Æ) | (5,600 | ) | (460 | ) | ||
TripAdvisor, Inc.(Æ) | (12,100 | ) | (545 | ) | Neurocrine Biosciences, Inc.(Æ) | (3,500 | ) | (187 | ) | ||
Zillow Group, Inc. Class A(Æ) | (8,600 | ) | (331 | ) | PAREXEL International Corp.(Æ) | (9,200 | ) | (587 | ) | ||
(9,038 | ) | Penumbra, Inc.(Æ) | (2,800 | ) | (239 | ) | |||||
Consumer Staples - (0.2)% | Quintiles Transnational Holdings, Inc.(Æ) | (11,200 | ) | (944 | ) | ||||||
B&G Foods, Inc. Class A | (6,700 | ) | (281 | ) | |||||||
Radius Health, Inc.(Æ) | (1,600 | ) | (62 | ) | |||||||
Kraft Heinz Co. (The) | (10,200 | ) | (922 | ) | |||||||
Sage Therapeutics, Inc.(Æ) | (2,000 | ) | (142 | ) | |||||||
(1,203 | ) | ||||||||||
Energy – (0.0)% | Spark Therapeutics, Inc.(Æ) | (1,200 | ) | (70 | ) | ||||||
Callon Petroleum Co.(Æ) | (10,300 | ) | (122 | ) | Tenet Healthcare Corp.(Æ) | (2,100 | ) | (33 | ) | ||
TESARO, Inc.(Æ) | (3,300 | ) | (487 | ) | |||||||
Financial Services - (2.1)% | Ultragenyx Pharmaceutical, Inc.(Æ) | (1,000 | ) | (64 | ) | ||||||
Alexander & Baldwin, Inc. | (8,100 | ) | (373 | ) | Veeva Systems, Inc. Class A(Æ) | (11,100 | ) | (595 | ) | ||
Annaly Capital Management, Inc.(ö) | (60,200 | ) | (711 | ) | (5,478 | ) | |||||
Apollo Commercial Real Estate Finance, | Materials and Processing - (0.6)% | ||||||||||
Inc.(ö) | (44,400 | ) | (856 | ) | AAON, Inc. | (20,410 | ) | (748 | ) | ||
BGC Partners, Inc. Class A | (39,200 | ) | (446 | ) | AK Steel Holding Corp.(Æ) | (8,300 | ) | (53 | ) | ||
Blackhawk Network Holdings, Inc. Class | |||||||||||
A(Æ) | (8,300 | ) | (336 | ) | Apogee Enterprises, Inc. | (7,500 | ) | (409 | ) | ||
Capitol Federal Financial, Inc. | (25,745 | ) | (377 | ) | Balchem Corp. | (8,190 | ) | (665 | ) | ||
Colony NorthStar, Inc. Class A(ö) | (51,300 | ) | (670 | ) | Compass Minerals International, Inc. | (600 | ) | (39 | ) | ||
CoreSite Realty Corp. Class A(ö) | (8,600 | ) | (841 | ) | LCI Industries | (7,530 | ) | (762 | ) | ||
CyrusOne, Inc.(ö) | (16,600 | ) | (907 | ) | Platform Specialty Products Corp.(Æ) | (8,900 | ) | (126 | ) | ||
Eaton Vance Corp. | (15,300 | ) | (657 | ) | RBC Bearings, Inc.(Æ) | (7,740 | ) | (776 | ) | ||
Education Realty Trust, Inc.(ö) | (15,800 | ) | (613 | ) | Summit Materials, Inc. Class A(Æ) | (8,300 | ) | (213 | ) | ||
FBL Financial Group, Inc. Class A | (2,080 | ) | (138 | ) | (3,791 | ) | |||||
Financial Engines, Inc. | (5,500 | ) | (234 | ) | Producer Durables - (0.5)% | ||||||
Gaming and Leisure Properties, Inc.(ö) | (23,700 | ) | (825 | ) | AZZ, Inc. | (8,900 | ) | (525 | ) | ||
Gramercy Property Trust(ö) | (29,170 | ) | (811 | ) | Dycom Industries, Inc.(Æ) | (7,000 | ) | (740 | ) | ||
Hudson Pacific Properties, Inc.(ö) | (20,100 | ) | (691 | ) | Johnson Controls International PLC | (17,200 | ) | (715 | ) | ||
LendingClub Corp.(Æ) | (57,700 | ) | (337 | ) | Macquarie Infrastructure Corp. | (8,500 | ) | (692 | ) | ||
Mercury General Corp. | (1,700 | ) | (104 | ) | Swift Transportation Co. Class A(Æ) | (9,500 | ) | (233 | ) | ||
Physicians Realty Trust(ö) | (33,800 | ) | (664 | ) | (2,905 | ) | |||||
PRA Group, Inc.(Æ) | (9,800 | ) | (316 | ) | Technology - (0.7)% |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 27
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||
Principal | Fair | |||||
Amount ($) or | Value | |||||
Shares | $ | |||||
ACI Worldwide, Inc.(Æ) | (27,300 | ) | (587 | ) | ||
Blackline, Inc.(Æ) | (2,300 | ) | (76 | ) | ||
Cavium, Inc.(Æ) | (6,700 | ) | (461 | ) | ||
Ellie Mae, Inc.(Æ) | (1,600 | ) | (163 | ) | ||
GoDaddy, Inc. Class A(Æ) | (3,800 | ) | (148 | ) | ||
Leidos Holdings, Inc. | (1,000 | ) | (53 | ) | ||
Liberty Expedia Holdings, Inc. Class A(Æ) | (1,500 | ) | (72 | ) | ||
Liberty Interactive Corp.(Æ) | (15,420 | ) | (830 | ) | ||
MKS Instruments, Inc. | (10,011 | ) | (783 | ) | ||
Paycom Software, Inc.(Æ) | (4,600 | ) | (277 | ) | ||
Tyler Technologies, Inc.(Æ) | (610 | ) | (100 | ) | ||
Xperi Corp. | (16,700 | ) | (561 | ) | ||
(4,111 | ) | |||||
Utilities - (0.2)% | ||||||
Cheniere Energy, Inc.(Æ) | (3,300 | ) | (150 | ) | ||
Pattern Energy Group, Inc. Class A | (38,700 | ) | (852 | ) | ||
(1,002 | ) | |||||
Total Securities Sold Short | ||||||
(proceeds $36,597) | (40,763 | ) | ||||
Other Assets and Liabilities, Net | ||||||
- 1.1% | 6,799 | |||||
Net Assets - 100.0% | 610,120 |
See accompanying notes which are an integral part of the financial statements.
28 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | ||||||
Amounts in thousands (except contract amounts) | ||||||
Unrealized | ||||||
Appreciation | ||||||
Number of | Notional | Expiration | (Depreciation) | |||
Contracts | Amount | Date | $ | |||
Long Positions | ||||||
S&P 500 E-Mini Index Futures | 189 | USD | 22,496 | 06/17 | 270 | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 270 |
Options Written | |||||||||||
Amounts in thousands (except contract amounts) | |||||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||||
S&P 500 Index | Put | 46 | 2,210.00 | USD | 10,166 | 05/12/17 | (5 | ) | |||
S&P 500 Index | Put | 46 | 2,260.00 | USD | 10,396 | 05/12/17 | (2 | ) | |||
S&P 500 Index | Put | 46 | 2,250.00 | USD | 10,350 | 05/19/17 | (12 | ) | |||
S&P 500 Index | Put | 46 | 2,300.00 | USD | 10,580 | 05/26/17 | (28 | ) | |||
Total Liability for Options Written (premiums received $151) (å) | (47 | ) | |||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | |||||||||||
Number of | Premiums | ||||||||||
Contracts | Received | ||||||||||
Outstanding October 31, 2016 | 254 | $ | 195 | ||||||||
Opened | 1,254 | 885 | |||||||||
Closed | (1,324 | ) | (929 | ) | |||||||
Expired | — | — | |||||||||
Outstanding April 30, 2017 | 184 | $ | 151 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||
Common Stocks | |||||||||||||||
Consumer Discretionary | $ | 69,705 | $ | — | $ | — | $ | — | $ | 69,705 | 11.4 | ||||
Consumer Staples | 67,746 | — | — | — | 67,746 | 11.1 | |||||||||
Energy | 28,555 | — | — | — | 28,555 | 4.7 | |||||||||
Financial Services | 113,443 | — | — | — | 113,443 | 18.6 | |||||||||
Health Care | 83,586 | — | — | — | 83,586 | 13.7 | |||||||||
Materials and Processing | 11,718 | — | — | — | 11,718 | 1.9 | |||||||||
Producer Durables | 81,833 | — | — | — | 81,833 | 13.4 | |||||||||
Technology | 81,669 | — | — | — | 81,669 | 13.4 | |||||||||
Utilities | 30,788 | — | — | — | 30,788 | 5.1 |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 29
Russell Investment Company
U.S. Defensive Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Short-Term Investments | — | 14,988 | — | 60,053 | 75,041 | 12.3 | |||||||||||
Total Investments | 569,043 | 14,988 | — | 60,053 | 644,084 | 105.6 | |||||||||||
Securities Sold Short*** | (40,763 | ) | — | — | — | (40,763 | ) | (6.7 | ) | ||||||||
Other Assets and Liabilities, Net | 1.1 | ||||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 270 | — | — | — | 270 | —* | |||||||||||
A | |||||||||||||||||
Liabilities | |||||||||||||||||
Options Written | — | (47 | ) | — | — | (47 | ) | (—)* | |||||||||
Total Other Financial Instruments** | $ | 270 | $ | (47 | ) | $ | — | $ | — | $ | 223 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
*** Refer to Schedule of Investments for detailed sector breakout.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
30 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 270 | |
Location: Statement of Assets and Liabilities - Liabilities | |||
Options written, at fair value | $ | 47 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 1,089 | |
Options written | 916 | ||
Total | $ | 2,005 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 417 | |
Options written | 73 | ||
Total | $ | 490 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 31
Russell Investment Company
U.S Defensive Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||
Gross | Net Amounts | |||||||||||
Amounts | of Liabilities | |||||||||||
Gross | Offset in the | Presented in | ||||||||||
Amounts of | Statement of | the Statement | ||||||||||
Recognized | Assets and | of Assets and | ||||||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | ||||||||
Futures Contracts | Variation margin on futures contracts | $ | 53 | $ | — | $ | 53 | |||||
Options Written Contracts | Options written, at fair value | 47 | — | 47 | ||||||||
Short Sales | Securities sold short, at market value | 40,763 | — | 40,763 | ||||||||
Total Financial and Derivative Liabilities | 40,863 | — | 40,863 | |||||||||
Financial and Derivative Liabilities not subject to a netting agreement | (100 | ) | — | (100 | ) | |||||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 40,763 | $ | — | $ | 40,763 | ||||||
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | ||||||||||||
Gross Amounts Not Offset in | ||||||||||||
the Statement of Assets and | ||||||||||||
Liabilities | ||||||||||||
Net Amounts | ||||||||||||
of Liabilities | ||||||||||||
Presented in | ||||||||||||
the Statement | Financial and | |||||||||||
of Assets and | Derivative | Collateral | ||||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | ||||||||
State Street | 40,763 | $ | — | $ | 40,763 | $ | — | |||||
Total | $ | 40,763 | $ | — | $ | 40,763 | $ | — |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
32 U.S Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 567,341 |
Investments, at fair value(>) | 644,084 | |
Cash (restricted)(a)(b) | 7,418 | |
Receivables: | ||
Dividends and interest | 444 | |
Dividends from affiliated funds | 41 | |
Investments sold | 3,390 | |
Fund shares sold | 47 | |
Prepaid expenses | 7 | |
Total assets | 655,431 | |
Liabilities | ||
Payables: | ||
Due to custodian | 73 | |
Due to broker (c) | 1,500 | |
Investments purchased | 1,751 | |
Fund shares redeemed | 472 | |
Accrued fees to affiliates | 403 | |
Other accrued expenses | 249 | |
Variation margin on futures contracts | 53 | |
Options written, at fair value(x) | 47 | |
Securities sold short, at fair value(‡) | 40,763 | |
Total liabilities | 45,311 | |
Net Assets | $ | 610,120 |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 33
Russell Investment Company
U.S. Defensive Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 315 | |
Accumulated net realized gain (loss) | 26,868 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 76,743 | ||
Futures contracts | 270 | ||
Options written | 104 | ||
Securities sold short | (4,166 | ) | |
Shares of beneficial interest | 120 | ||
Additional paid-in capital | 509,866 | ||
Net Assets | $ | 610,120 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 50.77 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 53.87 | |
Class A — Net assets | $ | 28,540,764 | |
Class A — Shares outstanding ($.01 par value) | 562,124 | ||
Net asset value per share: Class C(#) | $ | 50.44 | |
Class C — Net assets | $ | 43,291,337 | |
Class C — Shares outstanding ($.01 par value) | 858,252 | ||
Net asset value per share: Class E(#) | $ | 50.86 | |
Class E — Net assets | $ | 4,851,878 | |
Class E — Shares outstanding ($.01 par value) | 95,397 | ||
Net asset value per share: Class I(#) | $ | 50.76 | |
Class I — Net assets | $ | 136,450,295 | |
Class I — Shares outstanding ($.01 par value) | 2,687,973 | ||
Net asset value per share: Class S(#) | $ | 50.84 | |
Class S — Net assets | $ | 183,369,552 | |
Class S — Shares outstanding ($.01 par value) | 3,606,481 | ||
Net asset value per share: Class Y(#) | $ | 50.77 | |
Class Y — Net assets | $ | 213,616,098 | |
Class Y — Shares outstanding ($.01 par value) | 4,207,801 | ||
Amounts in thousands | |||
(x) Premiums received on options written | $ | 151 | |
(‡) Proceeds on securities sold short | $ | 36,597 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 60,053 | |
(a) Cash Collateral for Futures | $ | 1,083 | |
(b) Cash Collateral for Options | $ | 6,335 | |
(c) Due to Broker for Options | $ | 1,500 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
34 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 6,078 | |
Dividends from affiliated funds | 190 | ||
Interest | 37 | ||
Total investment income | 6,305 | ||
Expenses | |||
Advisory fees | 1,702 | ||
Administrative fees | 149 | ||
Custodian fees | 62 | ||
Distribution fees - Class A | 35 | ||
Distribution fees - Class C | 164 | ||
Transfer agent fees - Class A | 28 | ||
Transfer agent fees - Class C | 44 | ||
Transfer agent fees - Class E | 5 | ||
Transfer agent fees - Class I | 107 | ||
Transfer agent fees - Class S | 182 | ||
Transfer agent fees - Class Y | 5 | ||
Professional fees | 40 | ||
Registration fees | 48 | ||
Shareholder servicing fees - Class C | 54 | ||
Shareholder servicing fees - Class E | 7 | ||
Trustees’ fees | 14 | ||
Printing fees | 19 | ||
Dividends from securities sold short | 509 | ||
Interest expense paid on securities sold short | 243 | ||
Miscellaneous | 12 | ||
Expenses before reductions | 3,429 | ||
Expense reductions | (22 | ) | |
Net expenses | 3,407 | ||
Net investment income (loss) | 2,898 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 36,942 | ||
Futures contracts | 1,089 | ||
Options written | 916 | ||
Securities sold short | (6,358 | ) | |
Net realized gain (loss) | 32,589 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 32,900 | ||
Futures contracts | 417 | ||
Options written | 73 | ||
Securities sold short | (2,447 | ) | |
Net change in unrealized appreciation (depreciation) | 30,943 | ||
Net realized and unrealized gain (loss) | 63,532 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 66,430 |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 35
Russell Investment Company
U.S. Defensive Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 2,898 | $ | 11,308 | ||
Net realized gain (loss) | 32,589 | 80,752 | ||||
Net change in unrealized appreciation (depreciation) | 30,943 | (46,959 | ) | |||
Net increase (decrease) in net assets from operations | 66,430 | 45,101 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (82 | ) | (282 | ) | ||
Class C | (28 | ) | (158 | ) | ||
Class E | (19 | ) | (65 | ) | ||
Class I | (741 | ) | (2,490 | ) | ||
Class S | (825 | ) | (2,579 | ) | ||
Class Y | (1,143 | ) | (6,106 | ) | ||
From net realized gain | ||||||
Class A | (1,749 | ) | — | |||
Class C | (3,060 | ) | — | |||
Class E | (450 | ) | — | |||
Class I | (10,771 | ) | — | |||
Class S | (12,587 | ) | — | |||
Class Y | (14,695 | ) | — | |||
Net decrease in net assets from distributions | (46,150 | ) | (11,680 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (38,147 | ) | (400,831 | ) | ||
Total Net Increase (Decrease) in Net Assets | (17,867 | ) | (367,410 | ) | ||
Net Assets | ||||||
Beginning of period | 627,987 | 995,397 | ||||
End of period | $ | 610,120 | $ | 627,987 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 315 | $ | 255 |
See accompanying notes which are an integral part of the financial statements.
36 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Defensive Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 163 | $ | 8,264 | 219 | $ | 10,482 | ||||||
Proceeds from reinvestment of distributions | 37 | 1,797 | 6 | 274 | ||||||||
Payments for shares redeemed | (216 | ) | (11,046 | ) | (99 | ) | (4,790 | ) | ||||
Net increase (decrease) | (16 | ) | (985 | ) | 126 | 5,966 | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 17 | 822 | 83 | 4,005 | ||||||||
Proceeds from reinvestment of distributions | 63 | 3,019 | 3 | 155 | ||||||||
Payments for shares redeemed | (116 | ) | (5,727 | ) | (164 | ) | (7,906 | ) | ||||
Net increase (decrease) | (36 | ) | (1,886 | ) | (78 | ) | (3,746 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 110 | 5,467 | 12 | 571 | ||||||||
Proceeds from reinvestment of distributions | 9 | 464 | 1 | 64 | ||||||||
Payments for shares redeemed | (141 | ) | (7,003 | ) | (27 | ) | (1,288 | ) | ||||
Net increase (decrease) | (22 | ) | (1,072 | ) | (14 | ) | (653 | ) | ||||
Class I | ||||||||||||
Proceeds from shares sold | 49 | 2,458 | 246 | 11,814 | ||||||||
Proceeds from reinvestment of distributions | 227 | 10,970 | 49 | 2,364 | ||||||||
Payments for shares redeemed | (686 | ) | (34,347 | ) | (1,264 | ) | (60,623 | ) | ||||
Net increase (decrease) | (410 | ) | (20,919 | ) | (969 | ) | (46,445 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 220 | 10,892 | 653 | 30,978 | ||||||||
Proceeds from reinvestment of distributions | 265 | 12,859 | 51 | 2,473 | ||||||||
Payments for shares redeemed | (562 | ) | (27,969 | ) | (1,206 | ) | (57,990 | ) | ||||
Net increase (decrease) | (77 | ) | (4,218 | ) | (502 | ) | (24,539 | ) | ||||
Class Y | ||||||||||||
Proceeds from shares sold | 248 | 12,586 | 414 | 20,053 | ||||||||
Proceeds from reinvestment of distributions | 327 | 15,838 | 126 | 6,106 | ||||||||
Payments for shares redeemed | (754 | ) | (37,491 | ) | (7,190 | ) | (357,573 | ) | ||||
Net increase (decrease) | (179 | ) | (9,067 | ) | (6,650 | ) | (331,414 | ) | ||||
Total increase (decrease) | (740 | ) | $ | (38,147 | ) | (8,087 | ) | $ | (400,831 | ) |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 37
Russell Investment Company
U.S. Defensive Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 49.22 | .17 | 5.07 | 5.24 | (.16 | ) | (3.53 | ) | ||||||||
October 31, 2016 | 47.76 | .45 | 1.55 | 2.00 | (.54 | ) | — | |||||||||
October 31, 2015 | 46.04 | .50 | 1.72 | 2.22 | (.50 | ) | — | |||||||||
October 31, 2014 | 40.06 | .40 | 6.00 | 6.40 | (.42 | ) | — | |||||||||
October 31, 2013 | 32.65 | .43 | 7.42 | 7.85 | (.44 | ) | — | |||||||||
October 31, 2012 | 29.57 | .27 | 3.11 | 3.38 | (.30 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 48.98 | (.02 | ) | 5.04 | 5.02 | (.03 | ) | (3.53 | ) | |||||||
October 31, 2016 | 47.52 | .10 | 1.53 | 1.63 | (.17 | ) | — | |||||||||
October 31, 2015 | 45.80 | .15 | 1.72 | 1.87 | (.15 | ) | — | |||||||||
October 31, 2014 | 39.87 | .08 | 5.95 | 6.03 | (.10 | ) | — | |||||||||
October 31, 2013 | 32.50 | .16 | 7.38 | 7.54 | (.17 | ) | — | |||||||||
October 31, 2012 | 29.45 | .03 | 3.10 | 3.13 | (.08 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 49.29 | .17 | 5.08 | 5.25 | (.15 | ) | (3.53 | ) | ||||||||
October 31, 2016 | 47.82 | .46 | 1.54 | 2.00 | (.53 | ) | — | |||||||||
October 31, 2015 | 46.08 | .52 | 1.71 | 2.23 | (.49 | ) | — | |||||||||
October 31, 2014 | 40.08 | .42 | 5.98 | 6.40 | (.40 | ) | — | |||||||||
October 31, 2013 | 32.66 | .44 | 7.41 | 7.85 | (.43 | ) | — | |||||||||
October 31, 2012 | 29.54 | .30 | 3.09 | 3.39 | (.27 | ) | — | |||||||||
Class I | ||||||||||||||||
April 30, 2017* | 49.22 | .25 | 5.06 | 5.31 | (.24 | ) | (3.53 | ) | ||||||||
October 31, 2016 | 47.75 | .63 | 1.53 | 2.16 | (.69 | ) | — | |||||||||
October 31, 2015 | 46.03 | .66 | 1.72 | 2.38 | (.66 | ) | — | |||||||||
October 31, 2014 | 40.06 | .55 | 5.99 | 6.54 | (.57 | ) | — | |||||||||
October 31, 2013 | 32.65 | .55 | 7.42 | 7.97 | (.56 | ) | — | |||||||||
October 31, 2012 | 29.57 | .38 | 3.11 | 3.49 | (.41 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 49.29 | .23 | 5.08 | 5.31 | (.23 | ) | (3.53 | ) | ||||||||
October 31, 2016 | 47.82 | .59 | 1.53 | 2.12 | (.65 | ) | — | |||||||||
October 31, 2015 | 46.09 | .63 | 1.72 | 2.35 | (.62 | ) | — | |||||||||
October 31, 2014 | 40.11 | .51 | 6.00 | 6.51 | (.53 | ) | — | |||||||||
October 31, 2013 | 32.69 | .53 | 7.42 | 7.95 | (.53 | ) | — | |||||||||
October 31, 2012 | 29.59 | .35 | 3.10 | 3.45 | (.35 | ) | — | |||||||||
Class Y | ||||||||||||||||
April 30, 2017* | 49.22 | .28 | 5.07 | 5.35 | (.27 | ) | (3.53 | ) | ||||||||
October 31, 2016 | 47.75 | .70 | 1.52 | 2.22 | (.75 | ) | — | |||||||||
October 31, 2015 | 46.03 | .71 | 1.73 | 2.44 | (.72 | ) | — | |||||||||
October 31, 2014 | 40.06 | .60 | 5.99 | 6.59 | (.62 | ) | — | |||||||||
October 31, 2013 | 32.65 | .59 | 7.42 | 8.01 | (.60 | ) | — | |||||||||
October 31, 2012 | 29.58 | .42 | 3.10 | 3.52 | (.45 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
38 U.S. Defensive Equity Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(g)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | |||||||||
(3.69 | ) | 50.77 | 11.01 | 28,541 | 1.36 | 1.36 | .69 | 58 | |||||||||
(.54 | ) | 49.22 | 4.21 | 28,450 | 1.26 | 1.26 | .93 | 94 | |||||||||
(.50 | ) | 47.76 | 4.86 | 21,590 | 1.09 | 1.09 | 1.07 | 93 | |||||||||
(.42 | ) | 46.04 | 16.05 | 25,233 | 1.09 | 1.09 | .94 | 105 | |||||||||
(.44 | ) | 40.06 | 24.18 | 26,019 | 1.10 | 1.10 | 1.17 | 105 | |||||||||
(.30 | ) | 32.65 | 11.47 | 21,977 | 1.28 | 1.28 | .85 | 150 | |||||||||
(3.56 | ) | 50.44 | 10.59 | 43,291 | 2.11 | 2.11 | (.07 | ) | 58 | ||||||||
(.17 | ) | 48.98 | 3.43 | 43,815 | 2.01 | 2.01 | .20 | 94 | |||||||||
(.15 | ) | 47.52 | 4.09 | 46,206 | 1.84 | 1.84 | .32 | 93 | |||||||||
(.10 | ) | 45.80 | 15.15 | 50,833 | 1.84 | 1.84 | .19 | 105 | |||||||||
(.17 | ) | 39.87 | 23.30 | 48,222 | 1.85 | 1.85 | .44 | 105 | |||||||||
(.08 | ) | 32.50 | 10.64 | 45,352 | 2.03 | 2.03 | .10 | 150 | |||||||||
(3.68 | ) | 50.86 | 11.02 | 4,852 | 1.36 | 1.36 | .70 | 58 | |||||||||
(.53 | ) | 49.29 | 4.20 | 5,781 | 1.26 | 1.26 | .95 | 94 | |||||||||
(.49 | ) | 47.82 | 4.87 | 6,262 | 1.09 | 1.09 | 1.10 | 93 | |||||||||
(.40 | ) | 46.08 | 16.03 | 9,598 | 1.09 | 1.09 | .97 | 105 | |||||||||
(.43 | ) | 40.08 | 24.23 | 17,140 | 1.10 | 1.09 | 1.21 | 105 | |||||||||
(.27 | ) | 32.66 | 11.47 | 18,709 | 1.28 | 1.23 | .93 | 150 | |||||||||
(3.77 | ) | 50.76 | 11.17 | 136,450 | 1.05 | 1.04 | 1.01 | 58 | |||||||||
(.69 | ) | 49.22 | 4.55 | 152,494 | .93 | .93 | 1.29 | 94 | |||||||||
(.66 | ) | 47.75 | 5.21 | 194,202 | .76 | .76 | 1.41 | 93 | |||||||||
(.57 | ) | 46.03 | 16.41 | 260,235 | .76 | .76 | 1.28 | 105 | |||||||||
(.56 | ) | 40.06 | 24.63 | 276,370 | .77 | .77 | 1.52 | 105 | |||||||||
(.41 | ) | 32.65 | 11.83 | 280,933 | .95 | .95 | 1.19 | 150 | |||||||||
(3.76 | ) | 50.84 | 11.15 | 183,370 | 1.11 | 1.10 | .94 | 58 | |||||||||
(.65 | ) | 49.29 | 4.46 | 181,534 | 1.01 | 1.01 | 1.21 | 94 | |||||||||
(.62 | ) | 47.82 | 5.14 | 200,122 | .84 | .84 | 1.34 | 93 | |||||||||
(.53 | ) | 46.09 | 16.32 | 266,202 | .84 | .84 | 1.20 | 105 | |||||||||
(.53 | ) | 40.11 | 24.53 | 275,158 | .85 | .85 | 1.45 | 105 | |||||||||
(.35 | ) | 32.69 | 11.70 | 289,196 | 1.03 | 1.03 | 1.10 | 150 | |||||||||
(3.80 | ) | 50.77 | 11.27 | 213,616 | .91 | .91 | 1.13 | 58 | |||||||||
(.75 | ) | 49.22 | 4.67 | 215,913 | .81 | .81 | 1.46 | 94 | |||||||||
(.72 | ) | 47.75 | 5.34 | 527,015 | .64 | .64 | 1.51 | 93 | |||||||||
(.62 | ) | 46.03 | 16.54 | 596,837 | .64 | .64 | 1.39 | 105 | |||||||||
(.60 | ) | 40.06 | 24.78 | 586,634 | .65 | .65 | 1.64 | 105 | |||||||||
(.45 | ) | 32.65 | 11.93 | 568,935 | .85 | .85 | 1.31 | 150 |
See accompanying notes which are an integral part of the financial statements.
U.S. Defensive Equity Fund 39
Russell Investment Company
U.S. Defensive Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 275,122 |
Administration fees | 24,139 | |
Distribution fees | 32,357 | |
Shareholder servicing fees | 9,763 | |
Transfer agent fees | 55,201 | |
Trustee fees | 6,734 | |
$ | 403,316 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Management Fund | $ | 67,141 | $ | 170,499 | $ | 177,589 | $ | 9 | $ | (7) | $ | 60,053 | $ | 190 | $ | — | ||
$ | 67,141 | $ | 170,499 | $ | 177,589 | $ | 9 | $ | (7) | $ | 60,053 | $ | 190 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 571,247,730 | |||
Unrealized Appreciation | $ | 84,780,957 | |||
Unrealized Depreciation | (11,944,909 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 72,836,048 |
See accompanying notes which are an integral part of the financial statements.
40 U.S. Defensive Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,151.10 | $ | 1,017.16 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 8.21 | $ | 7.70 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.54% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,146.90 | $ | 1,013.44 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 12.19 | $ | 11.43 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 2.29% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,151.80 | $ | 1,017.16 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 8.22 | $ | 7.70 | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 1.54% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
U.S. Dynamic Equity Fund 41
Russell Investment Company
U.S. Dynamic Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class I | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,152.30 | $ | 1,018.74 | ||
Expenses Paid During Period* | $ | 6.51 | $ | 6.11 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.22% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,152.90 | $ | 1,018.45 | ||
Expenses Paid During Period* | $ | 6.83 | $ | 6.41 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.28% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,153.80 | $ | 1,019.39 | ||
Expenses Paid During Period* | $ | 5.82 | $ | 5.46 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.09% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to refÿÿÿÿlect the one-half | ||||||
year period). |
42 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 101.9% | Tenneco, Inc. | 14,894 | 939 | ||||
Consumer Discretionary - 15.8% | Thomson Reuters Corp. | 2,618 | 119 | ||||
Aaron's, Inc. Class A | 22,700 | 816 | Thor Industries, Inc. | 2,382 | 229 | ||
Amazon.com, Inc.(Æ) | 7,378 | 6,823 | Time Warner, Inc. | 17,618 | 1,749 | ||
AMC Networks, Inc. Class A(Æ) | 10,388 | 620 | Time, Inc. | 17,925 | 272 | ||
Avis Budget Group, Inc.(Æ) | 12,495 | 381 | TJX Cos., Inc. | 3,303 | 260 | ||
Avon Products, Inc.(Æ) | 17,400 | 84 | Toll Brothers, Inc. | 4,134 | 149 | ||
Bed Bath & Beyond, Inc. | 15,179 | 588 | Tractor Supply Co. | 1,600 | 99 | ||
Best Buy Co., Inc. | 10,227 | 530 | Twenty-First Century Fox, Inc. Class A | 7,337 | 224 | ||
Big Lots, Inc. | 9,574 | 483 | Viacom, Inc. Class B | 17,500 | 745 | ||
Bloomin' Brands, Inc. | 15,373 | 333 | Visteon Corp.(Æ) | 10,644 | 1,096 | ||
Brunswick Corp. | 5,689 | 323 | Wal-Mart Stores, Inc. | 21,792 | 1,639 | ||
Cable One, Inc. | 440 | 300 | Walt Disney Co. (The) | 2,006 | 232 | ||
Carnival Corp. | 15,716 | 970 | Whirlpool Corp. | 1,980 | 368 | ||
CBS Corp. Class B | 11,000 | 732 | Yum! Brands, Inc. | 410 | 27 | ||
Charter Communications, Inc. Class A(Æ) | 640 | 221 | |||||
Coach, Inc. | 38,972 | 1,535 | 45,540 | ||||
Comcast Corp. Class A | 6,049 | 237 | |||||
Costco Wholesale Corp. | 238 | 42 | Consumer Staples - 3.4% | ||||
Altria Group, Inc. | 1,424 | 102 | |||||
Coty, Inc. Class A | 1,037 | 19 | Archer-Daniels-Midland Co. | 17,954 | 822 | ||
Dana Holding Corp. | 38,619 | 750 | Bunge, Ltd. | 15,394 | 1,217 | ||
Domino's Pizza, Inc. | 3,690 | 669 | Colgate-Palmolive Co. | 497 | 36 | ||
DR Horton, Inc. | 56,356 | 1,854 | Constellation Brands, Inc. Class A | 239 | 41 | ||
eBay, Inc.(Æ)(Û) | 18,811 | 628 | Cosan, Ltd. Class A | 23,828 | 183 | ||
Fiat Chrysler Automobiles NV(Æ) | 41,418 | 471 | CVS Health Corp. | 954 | 79 | ||
Foot Locker, Inc. | 6,137 | 475 | Dean Foods Co. | 21,583 | 426 | ||
Ford Motor Co. | 150,674 | 1,728 | Ingredion, Inc. | 1,948 | 241 | ||
General Motors Co.(Û) | 61,459 | 2,129 | Kimberly-Clark Corp. | 200 | 26 | ||
Graham Holdings Co. Class B | 52 | 31 | Kraft Heinz Co. (The) | 19,996 | 1,807 | ||
Hilton Worldwide Holdings, Inc. | 25,225 | 1,488 | Kroger Co. (The) | 24,951 | 740 | ||
Home Depot, Inc. (The) | 1,896 | 296 | Molson Coors Brewing Co. Class B | 364 | 35 | ||
IMAX Corp.(Æ) | 56,520 | 1,724 | Mondelez International, Inc. Class A | 463 | 21 | ||
Interpublic Group of Cos., Inc. (The) | 15,850 | 374 | Monster Beverage Corp.(Æ) | 819 | 37 | ||
Kohl's Corp. | 2,230 | 87 | Nu Skin Enterprises, Inc. Class A | 8,006 | 442 | ||
Las Vegas Sands Corp. | 1,636 | 97 | PepsiCo, Inc. | 7,679 | 869 | ||
Lear Corp. | 6,982 | 996 | Philip Morris International, Inc. | 17,907 | 1,984 | ||
Lennar Corp. Class A | 1,241 | 63 | Procter & Gamble Co. (The) | 2,163 | 189 | ||
Lowe's Cos., Inc. | 1,710 | 145 | Sysco Corp. | 2,793 | 148 | ||
Marriott International, Inc. Class A | 1,457 | 138 | Tyson Foods, Inc. Class A | 559 | 36 | ||
McDonald's Corp. | 5,714 | 800 | US Foods Holding Corp.(Æ) | 6,100 | 172 | ||
Meredith Corp. | 4,240 | 248 | Walgreens Boots Alliance, Inc. | 1,976 | 171 | ||
Meritage Homes Corp.(Æ) | 1,443 | 56 | |||||
Michael Kors Holdings, Ltd.(Æ) | 11,778 | 440 | 9,824 | ||||
Netflix, Inc.(Æ) | 5,112 | 778 | |||||
News Corp. Class A | 30,600 | 389 | Energy - 6.9% | ||||
Nexstar Media Group, Inc. Class A | 2,367 | 163 | Anadarko Petroleum Corp. | 7,920 | 452 | ||
Nike, Inc. Class B | 2,736 | 152 | Apache Corp. | 1,450 | 71 | ||
Office Depot, Inc. | 51,216 | 254 | Baker Hughes, Inc. | 630 | 37 | ||
Omnicom Group, Inc. | 11,750 | 965 | BP PLC - ADR | 18,175 | 624 | ||
Pandora Media, Inc.(Æ)(Ñ) | 2,762 | 30 | Cenovus Energy, Inc. | 91,069 | 909 | ||
Priceline Group, Inc. (The)(Æ) | 339 | 626 | Chevron Corp. | 10,223 | 1,090 | ||
PulteGroup, Inc. | 46,830 | 1,062 | Cimarex Energy Co. | 4,555 | 531 | ||
Ross Stores, Inc. | 1,464 | 95 | Concho Resources, Inc.(Æ) | 808 | 102 | ||
Royal Caribbean Cruises, Ltd. | 7,267 | 775 | ConocoPhillips | 7,137 | 342 | ||
Scientific Games Corp. Class A(Æ) | 2,500 | 59 | CONSOL Energy, Inc.(Æ) | 26,309 | 399 | ||
Staples, Inc. | 91,736 | 896 | Core Laboratories NV | 1,056 | 117 | ||
Starbucks Corp. | 3,360 | 202 | Devon Energy Corp. | 41,514 | 1,639 | ||
Target Corp. | 4,001 | 223 | Enbridge, Inc. | 996 | 41 | ||
Energen Corp.(Æ) | 7,500 | 390 |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 43
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Ensco PLC Class A | 18,223 | 144 | E*Trade Financial Corp.(Æ) | 14,300 | 494 | ||
EOG Resources, Inc. | 10,654 | 985 | East West Bancorp, Inc. | 12,100 | 657 | ||
Exxon Mobil Corp. | 22,147 | 1,809 | Equinix, Inc.(ö) | 2,500 | 1,044 | ||
Halliburton Co. | 9,463 | 434 | Equity Commonwealth(ö) | 6,195 | 198 | ||
Helmerich & Payne, Inc. | 3,873 | 235 | Equity Residential(ö) | 2,778 | 179 | ||
Hess Corp. | 2,283 | 111 | Essex Property Trust, Inc.(ö) | 186 | 45 | ||
Marathon Petroleum Corp. | 15,039 | 766 | First Financial Bankshares, Inc. | 308 | 12 | ||
Murphy Oil Corp. | 28,712 | 752 | First Republic Bank | 1,407 | 130 | ||
Nabors Industries, Ltd. | 24,074 | 249 | Forest City Realty Trust, Inc. Class A(ö) | 8,741 | 198 | ||
National Oilwell Varco, Inc. | 16,300 | 570 | Franklin Resources, Inc. | 24,700 | 1,065 | ||
Newfield Exploration Co.(Æ) | 11,191 | 387 | GGP, Inc.(Æ) | 6,470 | 140 | ||
Noble Corp. PLC(Ñ) | 29,800 | 143 | Goldman Sachs Group, Inc. (The) | 21,341 | 4,776 | ||
Noble Energy, Inc. | 5,200 | 168 | Hartford Financial Services Group, Inc. | 13,500 | 653 | ||
Occidental Petroleum Corp. | 1,037 | 64 | HCP, Inc.(ö) | 3,001 | 94 | ||
Oceaneering International, Inc. | 8,647 | 228 | Hospitality Properties Trust(ö) | 8,403 | 267 | ||
Patterson-UTI Energy, Inc. | 18,386 | 398 | Host Hotels & Resorts, Inc.(ö) | 23,886 | 429 | ||
Phillips 66 | 1,585 | 126 | JPMorgan Chase & Co.(Û) | 49,573 | 4,313 | ||
Pioneer Natural Resources Co. | 9,586 | 1,659 | KeyCorp | 91,979 | 1,679 | ||
Rowan Cos. PLC Class A(Æ) | 28,836 | 406 | LaSalle Hotel Properties(ö) | 15,246 | 435 | ||
Royal Dutch Shell PLC Class A - ADR | 24,754 | 1,292 | Lazard, Ltd. Class A | 5,538 | 238 | ||
Schlumberger, Ltd. | 1,578 | 115 | Lincoln National Corp. | 10,708 | 706 | ||
Southwestern Energy Co.(Æ) | 65,158 | 490 | Mack-Cali Realty Corp.(ö) | 17,770 | 481 | ||
Tesoro Corp. | 5,096 | 406 | MasterCard, Inc. Class A | 542 | 63 | ||
Valero Energy Corp.(Û) | 21,580 | 1,394 | MetLife, Inc. | 19,037 | 986 | ||
20,075 | Morgan Stanley | 45,571 | 1,976 | ||||
Northern Trust Corp. | 7,800 | 702 | |||||
Financial Services - 21.6% | NorthStar Realty Europe Corp.(ö) | 4,493 | 52 | ||||
Affiliated Managers Group, Inc. | 453 | 75 | PayPal Holdings, Inc.(Æ) | 1,657 | 79 | ||
Aflac, Inc. | 1,431 | 107 | Piedmont Office Realty Trust, Inc. Class A(ö) | 19,351 | 423 | ||
Allstate Corp. (The) | 12,869 | 1,046 | PNC Financial Services Group, Inc. (The) | 290 | 35 | ||
American Equity Investment Life Holding | Popular, Inc. | 16,071 | 674 | ||||
Co. | 4,400 | 104 | Progressive Corp. (The) | 1,194 | 47 | ||
American Express Co. | 491 | 39 | Prologis, Inc.(ö) | 5,419 | 295 | ||
American International Group, Inc. | 35,437 | 2,159 | Prudential Financial, Inc.(Û) | 19,806 | 2,120 | ||
American Tower Corp.(ö) | 1,062 | 134 | Public Storage(ö) | 622 | 130 | ||
Assurant, Inc. | 3,900 | 375 | Regions Financial Corp. | 64,575 | 888 | ||
Assured Guaranty, Ltd. | 28,404 | 1,083 | Reinsurance Group of America, Inc. Class A | 7,286 | 911 | ||
AvalonBay Communities, Inc.(ö) | 149 | 28 | RLJ Lodging Trust(ö) | 18,776 | 403 | ||
Axis Capital Holdings, Ltd. | 9,800 | 646 | Ryman Hospitality Properties, Inc.(ö) | 1,994 | 127 | ||
Bank of America Corp.(Û) | 300,658 | 7,020 | Simon Property Group, Inc.(ö) | 125 | 21 | ||
Bank of New York Mellon Corp. (The) | 2,185 | 103 | SL Green Realty Corp.(ö) | 4,920 | 516 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 1,221 | 202 | State Street Corp. | 12,141 | 1,018 | ||
BlackRock, Inc. Class A | 68 | 26 | SunTrust Banks, Inc. | 32,998 | 1,874 | ||
Boston Properties, Inc.(ö) | 3,148 | 398 | Synchrony Financial | 20,100 | 559 | ||
Capital One Financial Corp. | 13,102 | 1,053 | Synovus Financial Corp. | 4,291 | 179 | ||
CBL & Associates Properties, Inc.(ö) | 43,022 | 398 | UBS Group AG | 56,200 | 956 | ||
CBRE Group, Inc. Class A(Æ) | 14,074 | 504 | Ventas, Inc.(ö) | 708 | 45 | ||
Charles Schwab Corp. (The) | 2,846 | 111 | Visa, Inc. Class A | 1,379 | 126 | ||
Chubb, Ltd. | 978 | 134 | Vornado Realty Trust(ö) | 1,312 | 126 | ||
Citigroup, Inc. | 94,798 | 5,605 | Voya Financial, Inc. | 65,272 | 2,440 | ||
Citizens Financial Group, Inc. | 45,464 | 1,669 | Wells Fargo & Co. | 12,144 | 654 | ||
Colony NorthStar, Inc. Class A(ö) | 5,362 | 70 | Welltower, Inc.(ö) | 879 | 63 | ||
Comerica, Inc. | 9,600 | 679 | Weyerhaeuser Co.(ö) | 8,751 | 296 | ||
Crown Castle International Corp.(ö) | 494 | 47 | WP Glimcher, Inc.(ö) | 14,760 | 130 | ||
Digital Realty Trust, Inc.(ö) | 447 | 51 | Zions Bancorporation | 15,900 | 636 | ||
Discover Financial Services | 9,800 | 613 | 62,404 | ||||
Dun & Bradstreet Corp. (The) | 1,300 | 142 |
See accompanying notes which are an integral part of the financial statements.
44 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Health Care - 10.8% | FMC Corp. | 7,800 | 571 | ||||
Abbott Laboratories | 8,555 | 374 | Huntsman Corp. | 18,553 | 460 | ||
AbbVie, Inc. | 9,240 | 609 | Louisiana-Pacific Corp.(Æ) | 4,675 | 120 | ||
Aetna, Inc. | 826 | 112 | LyondellBasell Industries NV Class A(Û) | 10,502 | 890 | ||
Alexion Pharmaceuticals, Inc.(Æ) | 866 | 111 | Masco Corp. | 1,987 | 74 | ||
Allergan PLC(Æ) | 424 | 103 | Monsanto Co. | 708 | 83 | ||
Allscripts Healthcare Solutions, Inc.(Æ) | 16,800 | 201 | Mosaic Co. (The) | 2,311 | 62 | ||
Alnylam Pharmaceuticals, Inc.(Æ) | 17,966 | 963 | Newmont Mining Corp. | 1,476 | 50 | ||
Amgen, Inc.(Û) | 6,275 | 1,025 | Nucor Corp. | 1,091 | 67 | ||
Anthem, Inc. | 17,521 | 3,115 | Owens Corning | 15,527 | 945 | ||
Baxter International, Inc. | 18,698 | 1,041 | Packaging Corp. of America | 1,282 | 127 | ||
Becton Dickinson and Co. | 202 | 38 | PPG Industries, Inc. | 640 | 70 | ||
Biogen, Inc.(Æ)(Û) | 3,193 | 866 | Praxair, Inc. | 2,251 | 281 | ||
Bruker Corp. | 9,900 | 241 | Reliance Steel & Aluminum Co. | 2,299 | 181 | ||
Cardinal Health, Inc. | 8,346 | 605 | Sonoco Products Co. | 1,524 | 80 | ||
Celgene Corp.(Æ) | 9,433 | 1,170 | Steel Dynamics, Inc. | 7,230 | 261 | ||
Centene Corp.(Æ) | 10,800 | 804 | Teck Resources, Ltd. Class B | 4,134 | 86 | ||
Cigna Corp. | 11,164 | 1,746 | Trinseo SA | 6,452 | 428 | ||
DaVita HealthCare Partners, Inc.(Æ) | 5,626 | 388 | Univar, Inc.(Æ) | 5,700 | 170 | ||
Edwards Lifesciences Corp.(Æ) | 3,734 | 410 | WestRock Co. | 1,810 | 97 | ||
Endo International PLC(Æ) | 20,932 | 238 | 8,635 | ||||
Envision Healthcare Corp.(Æ) | 31,178 | 1,746 | |||||
Exact Sciences Corp.(Æ) | 12,792 | 384 | Producer Durables - 13.5% | ||||
Express Scripts Holding Co.(Æ) | 15,970 | 980 | 3M Co. | 788 | 154 | ||
Gilead Sciences, Inc.(Û) | 34,297 | 2,351 | Accenture PLC Class A | 343 | 42 | ||
HCA Holdings, Inc.(Æ) | 838 | 71 | AECOM(Æ) | 56,715 | 1,939 | ||
HMS Holdings Corp.(Æ) | 3,643 | 75 | AerCap Holdings NV(Æ) | 8,822 | 406 | ||
Humana, Inc. | 209 | 46 | AGCO Corp. | 7,400 | 474 | ||
Johnson & Johnson | 9,148 | 1,130 | American Airlines Group, Inc. | 10,172 | 434 | ||
Laboratory Corp. of America Holdings(Æ) | 1,145 | 160 | Automatic Data Processing, Inc. | 257 | 27 | ||
Mallinckrodt PLC(Æ) | 12,012 | 564 | Babcock & Wilcox Co. (The) Class W(Æ) | 5,100 | 251 | ||
Masimo Corp.(Æ) | 2,500 | 257 | Boeing Co. (The) | 7,179 | 1,327 | ||
McKesson Corp. | 14,453 | 1,999 | Caterpillar, Inc. | 799 | 82 | ||
Merck & Co., Inc. | 16,641 | 1,038 | CoStar Group, Inc.(Æ) | 342 | 82 | ||
Mylan NV(Æ) | 20,170 | 753 | CSX Corp. | 1,970 | 100 | ||
Perrigo Co. PLC | 804 | 59 | Cummins, Inc. | 658 | 99 | ||
Pfizer, Inc. | 31,850 | 1,081 | Danaher Corp. | 418 | 35 | ||
Quest Diagnostics, Inc. | 6,913 | 729 | Deere & Co. | 865 | 97 | ||
Regeneron Pharmaceuticals, Inc.(Æ) | 283 | 110 | Delphi Automotive PLC | 18,998 | 1,527 | ||
Stryker Corp. | 321 | 44 | Delta Air Lines, Inc. | 66,353 | 3,016 | ||
Thermo Fisher Scientific, Inc. | 11,930 | 1,972 | Dover Corp. | 13,150 | 1,037 | ||
United Therapeutics Corp.(Æ) | 3,728 | 469 | Dycom Industries, Inc.(Æ) | 1,305 | 138 | ||
UnitedHealth Group, Inc. | 824 | 144 | Eaton Corp. PLC | 849 | 64 | ||
Vertex Pharmaceuticals, Inc.(Æ) | 7,084 | 838 | Emerson Electric Co. | 542 | 33 | ||
31,160 | EnerSys | 5,080 | 422 | ||||
Euronav NV | 26,002 | 205 | |||||
Materials and Processing - 3.0% | FedEx Corp.(Û) | 21,212 | 4,024 | ||||
Air Products & Chemicals, Inc. | 393 | 55 | Fluor Corp. | 10,500 | 539 | ||
Albemarle Corp. | 467 | 51 | General Dynamics Corp. | 217 | 42 | ||
Bemis Co., Inc. | 1,222 | 55 | General Electric Co. | 31,087 | 901 | ||
Cabot Corp. | 10,677 | 642 | Hawaiian Holdings, Inc.(Æ) | 7,935 | 431 | ||
Cliffs Natural Resources, Inc.(Æ) | 24,990 | 168 | HD Supply Holdings, Inc.(Æ) | 3,732 | 150 | ||
Domtar Corp. | 1,139 | 45 | Honeywell International, Inc. | 496 | 65 | ||
Dow Chemical Co. (The) | 32,358 | 2,033 | Illinois Tool Works, Inc. | 260 | 36 | ||
Eastman Chemical Co. | 965 | 77 | Insperity, Inc. | 4,100 | 375 | ||
Ecolab, Inc. | 1,033 | 133 | Jacobs Engineering Group, Inc. | 5,000 | 275 | ||
EI du Pont de Nemours & Co. | 3,426 | 273 | JB Hunt Transport Services, Inc. | 830 | 74 |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 45
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Johnson Controls International PLC | 870 | 36 | Dell Technologies, Inc. Class V(Æ) | 1,093 | 73 | ||
L3 Technologies, Inc. | 219 | 38 | DXC Technology Co. | 29,838 | 2,248 | ||
Lockheed Martin Corp. | 293 | 79 | Electronic Arts, Inc.(Æ) | 7,900 | 749 | ||
ManpowerGroup, Inc. | 12,425 | 1,255 | Entegris, Inc.(Æ) | 5,739 | 142 | ||
MSC Industrial Direct Co., Inc. Class A | 334 | 30 | F5 Networks, Inc.(Æ) | 4,204 | 543 | ||
Navistar International Corp.(Æ) | 4,100 | 110 | Facebook, Inc. Class A(Æ) | 24,527 | 3,686 | ||
Norfolk Southern Corp. | 830 | 98 | Finisar Corp.(Æ) | 13,400 | 306 | ||
Northrop Grumman Corp. | 151 | 37 | FireEye, Inc.(Æ)(Ñ) | 4,800 | 60 | ||
PACCAR, Inc. | 585 | 39 | Flextronics International, Ltd.(Æ) | 23,698 | 366 | ||
Parker-Hannifin Corp. | 3,412 | 549 | Groupon, Inc. Class A(Æ)(Ñ) | 11,400 | 45 | ||
Quanta Services, Inc.(Æ) | 21,959 | 778 | Harris Corp. | 14,077 | 1,575 | ||
Raytheon Co. | 743 | 115 | Hewlett Packard Enterprise Co. | 40,686 | 758 | ||
Republic Services, Inc. Class A | 1,335 | 84 | HP, Inc.(Û) | 124,744 | 2,347 | ||
Rockwell Automation, Inc. | 10,872 | 1,711 | IAC/InterActiveCorp(Æ) | 8,189 | 680 | ||
Snap-on, Inc. | 11,047 | 1,851 | Imperva, Inc.(Æ) | 688 | 31 | ||
Spirit AeroSystems Holdings, Inc. Class A | 9,922 | 567 | Intel Corp. | 52,837 | 1,910 | ||
Spirit Airlines, Inc.(Æ) | 7,716 | 442 | InterDigital, Inc. | 1,170 | 105 | ||
Stanley Black & Decker, Inc. | 6,187 | 842 | International Business Machines Corp. | 653 | 105 | ||
Terex Corp. | 21,217 | 743 | Intuit, Inc. | 11,979 | 1,500 | ||
Textron, Inc. | 13,890 | 648 | Jabil Circuit, Inc. | 22,443 | 651 | ||
Trimble Navigation, Ltd.(Æ) | 42,305 | 1,499 | Juniper Networks, Inc. | 28,300 | 851 | ||
Union Pacific Corp. | 18,915 | 2,118 | Lam Research Corp. | 6,206 | 899 | ||
United Continental Holdings, Inc.(Æ) | 11,683 | 820 | Marvell Technology Group, Ltd. | 162,734 | 2,444 | ||
United Parcel Service, Inc. Class B | 899 | 97 | Micron Technology, Inc.(Æ) | 39,563 | 1,095 | ||
United Rentals, Inc.(Æ) | 2,280 | 250 | Microsoft Corp.(Û) | 84,675 | 5,798 | ||
United Technologies Corp. | 1,094 | 130 | MicroStrategy, Inc. Class A(Æ) | 2,357 | 448 | ||
Wabtec Corp. | 25,185 | 2,112 | NCR Corp.(Æ) | 10,395 | 429 | ||
Waste Management, Inc. | 397 | 29 | NetApp, Inc. | 20,037 | 799 | ||
WESCO International, Inc.(Æ) | 6,700 | 408 | Nuance Communications, Inc.(Æ) | 18,200 | 326 | ||
Xerox Corp. | 79,700 | 573 | NVIDIA Corp. | 691 | 72 | ||
Xylem, Inc. | 40,372 | 2,075 | Oracle Corp. | 91,801 | 4,128 | ||
39,066 | Palo Alto Networks, Inc.(Æ) | 4,673 | 506 | ||||
QUALCOMM, Inc. | 15,611 | 839 | |||||
Technology - 24.5% | Salesforce.com, Inc.(Æ) | 2,452 | 211 | ||||
Adobe Systems, Inc.(Æ) | 611 | 82 | Sanmina Corp.(Æ) | 9,684 | 361 | ||
Advanced Micro Devices, Inc.(Æ) | 2,668 | 35 | Seagate Technology PLC | 17,910 | 754 | ||
Alphabet, Inc. Class A(Æ) | 1,012 | 936 | Splunk, Inc.(Æ) | 3,900 | 251 | ||
Alphabet, Inc. Class C(Æ) | 3,509 | 3,179 | Symantec Corp. | 1,895 | 60 | ||
Amdocs, Ltd. | 662 | 41 | Synaptics, Inc.(Æ) | 6,100 | 334 | ||
Amkor Technology, Inc.(Æ) | 21,553 | 254 | SYNNEX Corp. | 1,410 | 153 | ||
Apple, Inc.(Û) | 69,655 | 10,008 | Synopsys, Inc.(Æ) | 871 | 64 | ||
Applied Materials, Inc.(Û) | 30,102 | 1,222 | Tableau Software, Inc. Class A(Æ) | 8,534 | 458 | ||
ARRIS International PLC(Æ) | 19,900 | 517 | Take-Two Interactive Software, Inc.(Æ) | 4,345 | 273 | ||
ASML Holding NV Class G | 15,005 | 1,978 | Tech Data Corp.(Æ) | 8,746 | 837 | ||
Aspen Technology, Inc.(Æ) | 12,762 | 785 | Teradyne, Inc. | 27,742 | 978 | ||
Broadcom, Ltd. | 9,163 | 2,023 | Texas Instruments, Inc. | 586 | 46 | ||
CA, Inc. | 1,533 | 50 | Twitter, Inc.(Æ) | 17,800 | 293 | ||
Cadence Design Systems, Inc.(Æ) | 15,275 | 498 | VeriFone Systems, Inc.(Æ) | 28,700 | 532 | ||
CDW Corp. | 2,281 | 135 | VeriSign, Inc.(Æ) | 8,017 | 713 | ||
Ciena Corp.(Æ) | 18,800 | 431 | Viavi Solutions, Inc. Class W(Æ) | 47,600 | 476 | ||
Cirrus Logic, Inc.(Æ) | 4,100 | 264 | Vishay Intertechnology, Inc. | 33,018 | 540 | ||
Cisco Systems, Inc. | 7,416 | 253 | Western Digital Corp. | 327 | 29 | ||
Citrix Systems, Inc.(Æ) | 14,023 | 1,135 | Yahoo!, Inc.(Æ) | 894 | 43 | ||
Cognizant Technology Solutions Corp. Class | Zynga, Inc. Class A(Æ) | 149,607 | 432 | ||||
A | 18,754 | 1,130 | 70,888 | ||||
CommVault Systems, Inc.(Æ) | 4,300 | 217 | |||||
Corning, Inc. | 47,254 | 1,363 | Utilities - 2.4% |
See accompanying notes which are an integral part of the financial statements.
46 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) or | Value | Amount ($) or | Value | ||||||||
Shares | $ | Shares | $ | ||||||||
AES Corp. | 61,991 | 701 | Snyders-Lance, Inc. | (5,162 | ) | (182 | ) | ||||
Ameren Corp. | 711 | 39 | (311 | ) | |||||||
American Electric Power Co., Inc. | 3,248 | 220 | Energy - (0.2)% | ||||||||
American Water Works Co., Inc. | 445 | 35 | |||||||||
AT&T, Inc. | 10,521 | 417 | First Solar, Inc.(Æ) | (6,471 | ) | (191 | ) | ||||
CenturyLink, Inc.(Ñ) | 4,295 | 110 | Frank's International NV | (23,907 | ) | (218 | ) | ||||
CMS Energy Corp. | 646 | 29 | SunPower Corp. Class A(Æ) | (17,204 | ) | (119 | ) | ||||
Consolidated Edison, Inc. | 2,110 | 167 | Weatherford International PLC(Æ) | (11,604 | ) | (67 | ) | ||||
Dominion Resources, Inc. | 988 | 77 | (595 | ) | |||||||
DTE Energy Co. | 736 | 77 | Financial Services - (1.0)% | ||||||||
Duke Energy Corp. | 954 | 79 | Bank of the Ozarks, Inc. | (6,359 | ) | (301 | ) | ||||
Edison International | 944 | 75 | |||||||||
Frontier Communications Corp.(Ñ) | 11,062 | 21 | Chemical Financial Corp. | (5,736 | ) | (272 | ) | ||||
Hawaiian Electric Industries, Inc. | 1,803 | 60 | First Financial Bankshares, Inc. | (8,723 | ) | (348 | ) | ||||
j2 Global, Inc. | 5,081 | 459 | GEO Group, Inc. (The)(ö) | (4,620 | ) | (154 | ) | ||||
NextEra Energy, Inc. | 1,414 | 189 | Iron Mountain, Inc.(ö) | (7,143 | ) | (248 | ) | ||||
PG&E Corp. | 1,085 | 73 | LendingClub Corp.(Æ) | (13,239 | ) | (77 | ) | ||||
Public Service Enterprise Group, Inc. | 1,045 | 46 | |||||||||
Southern Co. (The) | 2,212 | 110 | Mercury General Corp. | (2,412 | ) | (148 | ) | ||||
Telephone & Data Systems, Inc. | 8,667 | 238 | New York Community Bancorp, Inc. | (19,829 | ) | (264 | ) | ||||
T-Mobile US, Inc.(Æ) | 37,955 | 2,554 | Pinnacle Financial Partners, Inc. | (3,700 | ) | (237 | ) | ||||
US Cellular Corp.(Æ) | 2,600 | 102 | Realty Income Corp.(ö) | (5,510 | ) | (322 | ) | ||||
Verizon Communications, Inc. | 22,128 | 1,015 | South State Corp. | (2,083 | ) | (184 | ) | ||||
WEC Energy Group, Inc. | 708 | 43 | United Bankshares, Inc. | (8,283 | ) | (330 | ) | ||||
Xcel Energy, Inc. | 1,126 | 51 | |||||||||
(2,886 | ) | ||||||||||
6,987 | Health Care - (0.6)% | ||||||||||
Acadia Healthcare Co., Inc.(Æ) | (2,951 | ) | (129 | ) | |||||||
Total Common Stocks | Alnylam Pharmaceuticals, Inc.(Æ) | (5,005 | ) | (268 | ) | ||||||
(cost $241,868) | 294,579 | DexCom, Inc.(Æ) | (3,065 | ) | (239 | ) | |||||
Insulet Corp.(Æ) | (4,062 | ) | (176 | ) | |||||||
Short-Term Investments - 2.2% | Ironwood Pharmaceuticals, Inc. Class A(Æ) | (8,538 | ) | (139 | ) | ||||||
U.S. Cash Management Fund | 6,256,996 | (8) | 6,258 | ||||||||
Total Short-Term Investments | Medicines Co. (The)(Æ) | (3,743 | ) | (185 | ) | ||||||
(cost $6,258) | 6,258 | Nektar Therapeutics(Æ) | (7,692 | ) | (146 | ) | |||||
OPKO Health, Inc.(Æ) | (32,474 | ) | (252 | ) | |||||||
Other Securities - 0.1% | Penumbra, Inc.(Æ) | (1,335 | ) | (114 | ) | ||||||
U.S. Cash Collateral Fund(×) | 283,290 | (8) | 283 | Sarepta Therapeutics, Inc.(Æ) | (1,625 | ) | (59 | ) | |||
Total Other Securities | (1,707 | ) | |||||||||
(cost $283) | 283 | Materials and Processing - (0.0)% | |||||||||
Acuity Brands, Inc. | (825 | ) | (145 | ) | |||||||
Total Investments 104.6% | Producer Durables - (0.3)% | ||||||||||
(identified cost $248,409) | 301,120 | ||||||||||
Securities Sold Short - (3.9)% | IHS Markit, Ltd.(Æ) | (8,754 | ) | (380 | ) | ||||||
Consumer Discretionary - (0.4)% | Square, Inc. Class A(Æ) | (14,183 | ) | (259 | ) | ||||||
Autoliv, Inc. | (1,536 | ) | (154 | ) | Welbilt, Inc.(Æ) | (6,544 | ) | (134 | ) | ||
CarMax, Inc.(Æ) | (1,353 | ) | (79 | ) | (773 | ) | |||||
Coty, Inc. Class A | (13,455 | ) | (240 | ) | Technology - (1.3)% | ||||||
Fitbit, Inc. Class A(Æ) | (21,992 | ) | (126 | ) | Advanced Micro Devices, Inc.(Æ) | (20,396 | ) | (271 | ) | ||
Tesla, Inc.(Æ) | (827 | ) | (260 | ) | Arista Networks, Inc.(Æ) | (1,826 | ) | (255 | ) | ||
Under Armour, Inc. Class A(Æ) | (13,000 | ) | (279 | ) | Atlassian Corp. PLC Class A(Æ) | (8,009 | ) | (276 | ) | ||
Zillow Group, Inc. Class A(Æ) | (4,213 | ) | (162 | ) | Cavium, Inc.(Æ) | (3,394 | ) | (234 | ) | ||
(1,300 | ) | Ellie Mae, Inc.(Æ) | (2,310 | ) | (235 | ) | |||||
Consumer Staples - (0.1)% | FireEye, Inc.(Æ) | (8,298 | ) | (104 | ) | ||||||
Kraft Heinz Co. (The) | (1,431 | ) | (129 | ) |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 47
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||||
Principal | Fair | ||||||
Amount ($) or | Value | ||||||
Shares | $ | ||||||
MACOM Technology Solutions Holdings, | |||||||
Inc.(Æ) | (4,821 | ) | (236 | ) | |||
Palo Alto Networks, Inc.(Æ) | (2,286 | ) | (248 | ) | |||
Paycom Software, Inc.(Æ) | (2,472 | ) | (149 | ) | |||
Pegasystems, Inc. | (3,332 | ) | (152 | ) | |||
Pure Storage, Inc. Class A(Æ) | (11,548 | ) | (123 | ) | |||
Salesforce.com, Inc.(Æ) | (2,935 | ) | (253 | ) | |||
Shopify, Inc. Class A(Æ) | (3,302 | ) | (251 | ) | |||
Twilio, Inc. Class A(Æ) | (8,042 | ) | (266 | ) | |||
Twitter, Inc.(Æ) | (9,694 | ) | (160 | ) | |||
Universal Display Corp. | (2,172 | ) | (194 | ) | |||
Zendesk, Inc.(Æ) | (8,655 | ) | (249 | ) | |||
(3,656 | ) | ||||||
Total Securities Sold Short | |||||||
(proceeds $11,576) | (11,372 | ) | |||||
Other Assets and Liabilities, Net | |||||||
- | (0.3%) | (826 | ) | ||||
Net Assets - 100.0% | 288,922 |
See accompanying notes which are an integral part of the financial statements.
48 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | ||||||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | |||||||||||||
Contracts | Amount | Date | $ | |||||||||||||
Long Positions | ||||||||||||||||
S&P 500 E-Mini Index Futures | 1 | USD | 119 | 06/17 | 2 | |||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 2 | |||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 45,540 | $ | — | $ | — | $ | — | $ | 45,540 | 15.8 | |||||
Consumer Staples | 9,824 | — | — | — | 9,824 | 3.4 | ||||||||||
Energy | 20,075 | — | — | — | 20,075 | 6.9 | ||||||||||
Financial Services | 62,404 | — | — | — | 62,404 | 21.6 | ||||||||||
Health Care | 31,160 | — | — | — | 31,160 | 10.8 | ||||||||||
Materials and Processing | 8,635 | — | — | — | 8,635 | 3.0 | ||||||||||
Producer Durables | 39,066 | — | — | — | 39,066 | 13.5 | ||||||||||
Technology | 70,888 | — | — | — | 70,888 | 24.5 | ||||||||||
Utilities | 6,987 | — | — | — | 6,987 | 2.4 | ||||||||||
Short-Term Investments | — | — | — | 6,258 | 6,258 | 2.2 | ||||||||||
Other Securities | — | — | — | 283 | 283 | 0.1 | ||||||||||
Total Investments | 294,579 | — | — | 6,541 | 301,120 | 104.2 | ||||||||||
Securities Sold Short*** | (11,372 | ) | — | — | — | (11,372 | ) | (3.9 | ) | |||||||
Other Assets and Liabilities, Net | (0.3 | ) | ||||||||||||||
100.0 | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 2 | — | — | — | 2 | —* | ||||||||||
Total Other Financial Instruments** | $ | 2 | $ | — | $ | — | $ | — | $ | 2 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
*** Refer to Schedule of Investments for detailed sector breakout.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 49
Russell Investment Company
U.S. Dynamic Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 2 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 991 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 101 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
50 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||
Gross | Net Amounts | |||||||
Amounts | of Assets | |||||||
Gross | Offset in the | Presented in | ||||||
Amounts of | Statement of | the Statement | ||||||
Recognized | Assets and | of Assets and | ||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||
Securities on Loan* | Investments, at fair value | $ | 274 | $ | — $ | 274 | ||
Total Financial and Derivative Assets | 274 | — | 274 | |||||
Financial and Derivative Assets not subject to a netting agreement | — | — | — | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 274 | $ | — $ | 274 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Assets | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||
Citigroup | 15 | $ | — | $ | 15 | $ | — | |||
Credit Suisse | 20 | — | 20 | — | ||||||
Goldman Sachs | 14 | — | 14 | — | ||||||
HSBC | 44 | — | 44 | — | ||||||
Merrill Lynch | 181 | — | 181 | — | ||||||
Total | $ | 274 | $ | — | $ | 274 | $ | — |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 51
Russell Investment Company
U.S. Dynamic Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||
Gross | Net Amounts | |||||||||||
Amounts | of Liabilities | |||||||||||
Gross | Offset in the | Presented in | ||||||||||
Amounts of | Statement of | the Statement | ||||||||||
Recognized | Assets and | of Assets and | ||||||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | ||||||||
Futures Contracts | Variation margin on futures contracts | $ | 1 | $ | — | $ | 1 | |||||
Short Sales | Securities sold short, at market value | 11,372 | — | 11,372 | ||||||||
Total Financial and Derivative Liabilities | 11,373 | — | 11,373 | |||||||||
Financial and Derivative Liabilities not subject to a netting agreement | (1 | ) | — | (1 | ) | |||||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 11,372 | $ | — | $ | 11,372 | ||||||
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | ||||||||||||
Gross Amounts Not Offset in | ||||||||||||
the Statement of Assets and | ||||||||||||
Liabilities | ||||||||||||
Net Amounts | ||||||||||||
of Liabilities | ||||||||||||
Presented in | ||||||||||||
the Statement | Financial and | |||||||||||
of Assets and | Derivative | Collateral | ||||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | ||||||||
State Street | 11,372 | $ | — | $ | 11,372 | $ | — | |||||
Total | $ | 11,372 | $ | — | $ | 11,372 | $ | — |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
52 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 248,409 |
Investments, at fair value(*)(>) | 301,120 | |
Cash (restricted)(a) | 105 | |
Receivables: | ||
Dividends and interest | 139 | |
Dividends from affiliated funds | 6 | |
Investments sold | 686 | |
Fund shares sold | 9 | |
Prepaid expenses | 4 | |
Total assets | 302,069 | |
Liabilities | ||
Payables: | ||
Investments purchased | 768 | |
Fund shares redeemed | 200 | |
Accrued fees to affiliates | 220 | |
Other accrued expenses | 303 | |
Variation margin on futures contracts | 1 | |
Securities sold short, at fair value(‡) | 11,372 | |
Payable upon return of securities loaned | 283 | |
Total liabilities | 13,147 | |
Net Assets | $ | 288,922 |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 53
Russell Investment Company
U.S. Dynamic Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (171 | ) |
Accumulated net realized gain (loss) | 46,751 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 52,711 | ||
Futures contracts | 2 | ||
Securities sold short | 204 | ||
Shares of beneficial interest | 267 | ||
Additional paid-in capital | 189,158 | ||
Net Assets | $ | 288,922 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 10.23 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 10.85 | |
Class A — Net assets | $ | 2,472,485 | |
Class A — Shares outstanding ($.01 par value) | 241,762 | ||
Net asset value per share: Class C(#) | $ | 8.37 | |
Class C — Net assets | $ | 8,779,145 | |
Class C — Shares outstanding ($.01 par value) | 1,049,484 | ||
Net asset value per share: Class E(#) | $ | 10.26 | |
Class E — Net assets | $ | 375,612 | |
Class E — Shares outstanding ($.01 par value) | 36,622 | ||
Net asset value per share: Class I(#) | $ | 10.99 | |
Class I — Net assets | $ | 11,943,254 | |
Class I — Shares outstanding ($.01 par value) | 1,086,483 | ||
Net asset value per share: Class S(#) | $ | 10.78 | |
Class S — Net assets | $ | 20,014,670 | |
Class S — Shares outstanding ($.01 par value) | 1,856,846 | ||
Net asset value per share: Class Y(#) | $ | 10.94 | |
Class Y — Net assets | $ | 245,336,458 | |
Class Y — Shares outstanding ($.01 par value) | 22,424,149 | ||
Amounts in thousands | |||
(*) Securities on loan included in investments | $ | 274 | |
(‡) Proceeds on securities sold short | $ | 11,576 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 6,541 | |
(a) Cash Collateral for Futures | $ | 105 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
54 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 3,032 | |
Dividends from affiliated funds | 43 | ||
Securities lending income (net) | 2 | ||
Securities lending income from affiliated funds (net) | 10 | ||
Total investment income | 3,087 | ||
Expenses | |||
Advisory fees | 1,500 | ||
Administrative fees | 91 | ||
Custodian fees | 88 | ||
Distribution fees - Class A | 3 | ||
Distribution fees - Class C | 32 | ||
Transfer agent fees - Class A | 2 | ||
Transfer agent fees - Class C | 9 | ||
Transfer agent fees - Class E | 1 | ||
Transfer agent fees - Class I | 9 | ||
Transfer agent fees - Class S | 20 | ||
Transfer agent fees - Class Y | 7 | ||
Professional fees | 36 | ||
Registration fees | 46 | ||
Shareholder servicing fees - Class C | 11 | ||
Shareholder servicing fees - Class E | —** | ||
Trustees’ fees | 8 | ||
Printing fees | 10 | ||
Dividends from securities sold short | 53 | ||
Interest expense paid on securities sold short | 196 | ||
Miscellaneous | 8 | ||
Expenses before reductions | 2,130 | ||
Expense reductions | (2 | ) | |
Net expenses | 2,128 | ||
Net investment income (loss) | 959 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 55,687 | ||
Futures contracts | 991 | ||
Securities sold short | (1,055 | ) | |
Net realized gain (loss) | 55,623 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 8,031 | ||
Futures contracts | 101 | ||
Securities sold short | (1,341 | ) | |
Net change in unrealized appreciation (depreciation) | 6,791 | ||
Net realized and unrealized gain (loss) | 62,414 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 63,373 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 55
Russell Investment Company
U.S. Dynamic Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 959 | $ | 3,819 | ||
Net realized gain (loss) | 55,623 | 21,234 | ||||
Net change in unrealized appreciation (depreciation) | 6,791 | (13,503 | ) | |||
Net increase (decrease) in net assets from operations | 63,373 | 11,550 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (3 | ) | (11 | ) | ||
Class C | (—)** | (16 | ) | |||
Class E | (1 | ) | (2 | ) | ||
Class I | (27 | ) | (113 | ) | ||
Class S | (39 | ) | (177 | ) | ||
Class Y | (1,024 | ) | (4,140 | ) | ||
From net realized gain | ||||||
Class A | (91 | ) | (347 | ) | ||
Class C | (468 | ) | (1,766 | ) | ||
Class E | (16 | ) | (46 | ) | ||
Class I | (538 | ) | (2,337 | ) | ||
Class S | (908 | ) | (4,150 | ) | ||
Class Y | (17,917 | ) | (66,530 | ) | ||
Net decrease in net assets from distributions | (21,032 | ) | (79,635 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (216,107 | ) | (56,654 | ) | ||
Total Net Increase (Decrease) in Net Assets | (173,768 | ) | (124,739 | ) | ||
Net Assets | ||||||
Beginning of period | 462,688 | 587,427 | ||||
End of period | $ | 288,922 | $ | 462,688 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (171 | ) | $ | (36 | ) |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
56 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Dynamic Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 58 | $ | 587 | 33 | $ | 319 | ||||||
Proceeds from reinvestment of distributions | 9 | 88 | 39 | 347 | ||||||||
Payments for shares redeemed | (14 | ) | (141 | ) | (102 | ) | (919 | ) | ||||
Net increase (decrease) | 53 | 534 | (30 | ) | (253 | ) | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 247 | 2,037 | 71 | 543 | ||||||||
Proceeds from reinvestment of distributions | 57 | 457 | 237 | 1,747 | ||||||||
Payments for shares redeemed | (228 | ) | (1,879 | ) | (514 | ) | (3,903 | ) | ||||
Net increase (decrease) | 76 | 615 | (206 | ) | (1,613 | ) | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 2 | 18 | — | 2 | ||||||||
Proceeds from reinvestment of distributions | 2 | 17 | 5 | 47 | ||||||||
Payments for shares redeemed | (2 | ) | (20 | ) | — | (2 | ) | |||||
Net increase (decrease) | 2 | 15 | 5 | 47 | ||||||||
Class I | ||||||||||||
Proceeds from shares sold | 7 | 73 | 133 | 1,415 | ||||||||
Proceeds from reinvestment of distributions | 50 | 528 | 229 | 2,173 | ||||||||
Payments for shares redeemed | (187 | ) | (1,983 | ) | (939 | ) | (9,579 | ) | ||||
Net increase (decrease) | (130 | ) | (1,382 | ) | (577 | ) | (5,991 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 131 | 1,385 | 358 | 3,414 | ||||||||
Proceeds from reinvestment of distributions | 88 | 916 | 440 | 4,102 | ||||||||
Payments for shares redeemed | (390 | ) | (4,102 | ) | (1,633 | ) | (15,565 | ) | ||||
Net increase (decrease) | (171 | ) | (1,801 | ) | (835 | ) | (8,049 | ) | ||||
Class Y | ||||||||||||
Proceeds from shares sold | 95 | 999 | 1,300 | 12,044 | ||||||||
Proceeds from reinvestment of distributions | 1,805 | 18,941 | 7,487 | 70,670 | ||||||||
Payments for shares redeemed | (21,860 | ) | (234,028 | ) | (12,298 | ) | (123,509 | ) | ||||
Net increase (decrease) | (19,960 | ) | (214,088 | ) | (3,511 | ) | (40,795 | ) | ||||
Total increase (decrease) | (20,130 | ) | $ | (216,107 | ) | (5,154 | ) | $ | (56,654 | ) |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 57
Russell Investment Company
U.S. Dynamic Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 9.32 | —(f) | 1.39 | 1.39 | (.01 | ) | (.47 | ) | |||||||||
October 31, 2016 | 10.76 | .03 | .11 | .14 | (.05 | ) | (1.53 | ) | |||||||||
October 31, 2015 | 12.12 | —(f) | .53 | .53 | —(f) | (1.89 | ) | ||||||||||
October 31, 2014 | 12.08 | (.03 | ) | 1.53 | 1.50 | —(f) | (1.46 | ) | |||||||||
October 31, 2013 | 9.40 | —(f) | 2.71 | 2.71 | (.03 | ) | — | ||||||||||
October 31, 2012(3) | 9.20 | .01 | .20 | .21 | (.01 | ) | — | ||||||||||
Class C | |||||||||||||||||
April 30, 2017* | 7.72 | (.03 | ) | 1.15 | 1.12 | — | (.47 | ) | |||||||||
October 31, 2016 | 9.21 | (.03 | ) | .08 | .05 | (.01 | ) | (1.53 | ) | ||||||||
October 31, 2015 | 10.70 | (.07 | ) | .47 | .40 | — | (1.89 | ) | |||||||||
October 31, 2014 | 10.90 | (.10 | ) | 1.36 | 1.26 | — | (1.46 | ) | |||||||||
October 31, 2013 | 8.53 | (.07 | ) | 2.44 | 2.37 | — | — | ||||||||||
October 31, 2012 | 7.56 | (.06 | ) | 1.03 | .97 | — | — | ||||||||||
Class E | |||||||||||||||||
April 30, 2017* | 9.34 | —(f) | 1.40 | 1.40 | (.01 | ) | (.47 | ) | |||||||||
October 31, 2016 | 10.78 | .03 | .11 | .14 | (.05 | ) | (1.53 | ) | |||||||||
October 31, 2015 | 12.14 | —(f) | .53 | .53 | —(f) | (1.89 | ) | ||||||||||
October 31, 2014 | 12.10 | (.02 | ) | 1.52 | 1.50 | — | (1.46 | ) | |||||||||
October 31, 2013 | 9.41 | .01 | 2.69 | 2.70 | (.01 | ) | — | ||||||||||
October 31, 2012 | 8.27 | —(f) | 1.14 | 1.14 | — | — | |||||||||||
Class I | |||||||||||||||||
April 30, 2017* | 9.98 | .02 | 1.48 | 1.50 | (.02 | ) | (.47 | ) | |||||||||
October 31, 2016 | 11.40 | .07 | .12 | .19 | (.08 | ) | (1.53 | ) | |||||||||
October 31, 2015 | 12.73 | .03 | .56 | .59 | (.03 | ) | (1.89 | ) | |||||||||
October 31, 2014 | 12.60 | .02 | 1.60 | 1.62 | (.03 | ) | (1.46 | ) | |||||||||
October 31, 2013 | 9.79 | .05 | 2.81 | 2.86 | (.05 | ) | — | ||||||||||
October 31, 2012 | 8.56 | .03 | 1.21 | 1.24 | (.01 | ) | — | ||||||||||
Class S | |||||||||||||||||
April 30, 2017* | 9.79 | .02 | 1.46 | 1.48 | (.02 | ) | (.47 | ) | |||||||||
October 31, 2016 | 11.22 | .06 | .11 | .17 | (.07 | ) | (1.53 | ) | |||||||||
October 31, 2015 | 12.55 | .02 | .56 | .58 | (.02 | ) | (1.89 | ) | |||||||||
October 31, 2014 | 12.45 | .01 | 1.57 | 1.58 | (.02 | ) | (1.46 | ) | |||||||||
October 31, 2013 | 9.68 | .04 | 2.76 | 2.80 | (.03 | ) | — | ||||||||||
October 31, 2012 | 8.48 | .03 | 1.17 | 1.20 | —(f) | — | |||||||||||
Class Y | |||||||||||||||||
April 30, 2017* | 9.94 | .03 | 1.47 | 1.50 | (.03 | ) | (.47 | ) | |||||||||
October 31, 2016 | 11.36 | .08 | .12 | .20 | (.09 | ) | (1.53 | ) | |||||||||
October 31, 2015 | 12.69 | .05 | .56 | .61 | (.05 | ) | (1.89 | ) | |||||||||
October 31, 2014 | 12.56 | .03 | 1.59 | 1.62 | (.03 | ) | (1.46 | ) | |||||||||
October 31, 2013 | 9.77 | .06 | 2.80 | 2.86 | (.07 | ) | — | ||||||||||
October 31, 2012(3) | 9.56 | .02 | .21 | .23 | (.02 | ) | — | ||||||||||
See accompanying notes which are an integral part of the financial statements.
58 U.S. Dynamic Equity Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e)(g) | Net Assets(d)(e) | Turnover Rate(b)(k) | ||||||||||
(.48 | ) | 10.23 | 15.11 | 2,472 | 1.54 | 1.54 | .06 | 54 | ||||||||||
(1.58 | ) | 9.32 | 2.10 | 1,757 | 1.55 | 1.55 | .35 | 118 | ||||||||||
(1.89 | ) | 10.76 | 4.58 | 2,349 | 1.50 | 1.50 | (.04 | ) | 142 | |||||||||
(1.46 | ) | 12.12 | 13.40 | 1,994 | 1.52 | 1.52 | (.22 | ) | 146 | |||||||||
(.03 | ) | 12.08 | 28.84 | 1,089 | 1.51 | 1.51 | — (i) | 142 | ||||||||||
(.01 | ) | 9.40 | 2.30 | 206 | 1.36 | 1.35 | .31 | 120 | ||||||||||
(.47 | ) | 8.37 | 14.69 | 8,779 | 2.29 | 2.29 | (.68 | ) | 54 | |||||||||
(1.54 | ) | 7.72 | 1.41 | 7,509 | 2.30 | 2.30 | (.40 | ) | 118 | |||||||||
(1.89 | ) | 9.21 | 3.81 | 10,862 | 2.25 | 2.25 | (.79 | ) | 142 | |||||||||
(1.46 | ) | 10.70 | 12.66 | 11,644 | 2.27 | 2.27 | (.96 | ) | 146 | |||||||||
— | 10.90 | 27.90 | 9,380 | 2.26 | 2.26 | (.68 | ) | 142 | ||||||||||
— | 8.53 | 12.83 | 5,386 | 2.28 | 2.07 | (.72 | ) | 120 | ||||||||||
(.48 | ) | 10.26 | 15.18 | 376 | 1.54 | 1.54 | .08 | 54 | ||||||||||
(1.58 | ) | 9.34 | 2.01 | 328 | 1.55 | 1.55 | .33 | 118 | ||||||||||
(1.89 | ) | 10.78 | 4.52 | 321 | 1.50 | 1.50 | (.02 | ) | 142 | |||||||||
(1.46 | ) | 12.14 | 13.46 | 1,893 | 1.52 | 1.52 | (.19 | ) | 146 | |||||||||
(.01 | ) | 12.10 | 28.75 | 2,959 | 1.51 | 1.51 | .10 | 142 | ||||||||||
— | 9.41 | 13.78 | 2,443 | 1.55 | 1.32 | (.01 | ) | 120 | ||||||||||
(.49 | ) | 10.99 | 15.23 | 11,943 | 1.24 | 1.22 | .41 | 54 | ||||||||||
(1.61 | ) | 9.98 | 2.47 | 12,144 | 1.22 | 1.22 | .68 | 118 | ||||||||||
(1.92 | ) | 11.40 | 4.90 | 20,455 | 1.17 | 1.17 | .30 | 142 | ||||||||||
(1.49 | ) | 12.73 | 13.86 | 28,158 | 1.19 | 1.18 | .14 | 146 | ||||||||||
(.05 | ) | 12.60 | 29.28 | 28,265 | 1.18 | 1.13 | .41 | 142 | ||||||||||
(.01 | ) | 9.79 | 14.34 | 18,586 | 1.21 | .94 | .38 | 120 | ||||||||||
(.49 | ) | 10.78 | 15.29 | 20,015 | 1.29 | 1.28 | .35 | 54 | ||||||||||
(1.60 | ) | 9.79 | 2.34 | 19,856 | 1.30 | 1.30 | .61 | 118 | ||||||||||
(1.91 | ) | 11.22 | 4.88 | 32,114 | 1.25 | 1.25 | .21 | 142 | ||||||||||
(1.48 | ) | 12.55 | 13.68 | 50,903 | 1.27 | 1.27 | .05 | 146 | ||||||||||
(.03 | ) | 12.45 | 29.04 | 72,332 | 1.26 | 1.26 | .35 | 142 | ||||||||||
— | 9.68 | 14.20 | 52,928 | 1.26 | 1.07 | .29 | 120 | |||||||||||
(.50 | ) | 10.94 | 15.38 | 245,337 | 1.09 | 1.09 | .56 | 54 | ||||||||||
(1.62 | ) | 9.94 | 2.63 | 421,094 | 1.10 | 1.10 | .79 | 118 | ||||||||||
(1.94 | ) | 11.36 | 5.06 | 521,326 | 1.05 | 1.05 | .41 | 142 | ||||||||||
(1.49 | ) | 12.69 | 13.99 | 629,285 | 1.07 | 1.07 | .23 | 146 | ||||||||||
(.07 | ) | 12.56 | 29.34 | 587,599 | 1.06 | 1.06 | .56 | 142 | ||||||||||
(.02 | ) | 9.77 | 2.36 | 563,827 | .91 | .91 | .80 | 120 |
See accompanying notes which are an integral part of the financial statements.
U.S. Dynamic Equity Fund 59
Russell Investment Company
U.S. Dynamic Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 190,007 |
Administration fees | 11,461 | |
Distribution fees | 5,913 | |
Shareholder servicing fees | 1,880 | |
Transfer agent fees | 7,026 | |
Trustee fees | 3,239 | |
$ | 219,526 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Collateral Fund | $ | 3,388 | $ | 28,170 | $ | 31,275 | $ | — | $ | — | $ | 283 | $ | 10 | $ | — | |
U.S. Cash Management Fund | 12,372 | 103,070 | 109,184 | — | — | 6,258 | 43 | — | |||||||||
$ | 15,760 | $ | 131,240 | $ | 140,459 | $ | — | $ | — | $ | 6,541 | $ | 53 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 253,602,813 | |||
Unrealized Appreciation | $ | 54,368,680 | |||
Unrealized Depreciation | (6,851,963 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 47,516,717 |
See accompanying notes which are an integral part of the financial statements.
60 U.S. Dynamic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,132.00 | $ | 1,019.54 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 5.60 | $ | 5.31 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.06% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,128.10 | $ | 1,015.82 | |
Expenses Paid During Period* | $ | 9.55 | $ | 9.05 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.81% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,132.30 | $ | 1,019.54 | |
of other funds. | Expenses Paid During Period* | $ | 5.60 | $ | 5.31 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.06% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
U.S. Strategic Equity Fund 61
Russell Investment Company
U.S. Strategic Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,133.30 | $ | 1,020.78 | ||
Expenses Paid During Period* | $ | 4.28 | $ | 4.06 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.81% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,001.50 | $ | 1,021.27 | ||
Expenses Paid During Period* | $ | 0.88 | $ | 3.56 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.71% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
0.71% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). |
62 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 95.6% | Scripps Networks Interactive, Inc. Class A | 15,686 | 1,172 | ||||
Consumer Discretionary - 12.7% | Staples, Inc. | 122,433 | 1,196 | ||||
Amazon.com, Inc.(Æ) | 46,872 | 43,356 | Starbucks Corp. | 412,636 | 24,783 | ||
AMC Networks, Inc. Class A(Æ) | 26,062 | 1,555 | Target Corp. | 215,702 | 12,047 | ||
AutoZone, Inc.(Æ) | 8,820 | 6,105 | Tenneco, Inc. | 38,175 | 2,406 | ||
Avis Budget Group, Inc.(Æ) | 39,151 | 1,194 | Thor Industries, Inc. | 8,297 | 798 | ||
Avon Products, Inc.(Æ) | 149,017 | 723 | Time Warner, Inc. | 70,773 | 7,026 | ||
Bed Bath & Beyond, Inc. | 133,835 | 5,186 | Time, Inc. | 39,941 | 607 | ||
Best Buy Co., Inc. | 35,593 | 1,844 | TJX Cos., Inc. | 127,424 | 10,021 | ||
Big Lots, Inc. | 33,321 | 1,682 | Toll Brothers, Inc. | 27,172 | 978 | ||
Brinker International, Inc. | 37,977 | 1,678 | Toyota Motor Corp. - ADR | 17,750 | 1,920 | ||
Brunswick Corp. | 23,138 | 1,313 | Tractor Supply Co. | 63,307 | 3,919 | ||
Cable One, Inc. | 1,783 | 1,216 | Visteon Corp.(Æ) | 44,263 | 4,557 | ||
CarMax, Inc.(Æ) | 795 | 47 | Wal-Mart Stores, Inc. | 491,871 | 36,979 | ||
Carnival Corp. | 91,094 | 5,627 | Walt Disney Co. (The) | 164,705 | 19,040 | ||
Charter Communications, Inc. Class A(Æ) | 4,109 | 1,418 | Whirlpool Corp. | 35,600 | 6,610 | ||
Chipotle Mexican Grill, Inc. Class A(Æ) | 21,562 | 10,231 | Yum China Holdings, Inc.(Æ) | 8,934 | 305 | ||
Choice Hotels International, Inc. | 1,381 | 87 | |||||
Coach, Inc. | 125,219 | 4,932 | 371,304 | ||||
Comcast Corp. Class A | 79,942 | 3,133 | |||||
Cooper Tire & Rubber Co. | 12,601 | 483 | Consumer Staples - 5.7% | ||||
Altria Group, Inc. | 252,389 | 18,117 | |||||
Dana Holding Corp. | 112,946 | 2,193 | Archer-Daniels-Midland Co. | 71,655 | 3,278 | ||
Darden Restaurants, Inc. | 33,350 | 2,841 | Brown-Forman Corp. Class B - ADR | 85,381 | 4,040 | ||
Dick's Sporting Goods, Inc. | 2,733 | 138 | Bunge, Ltd. | 18,041 | 1,426 | ||
Discovery Communications, Inc. Class A(Æ) | 26,001 | 748 | Campbell Soup Co. | 17,959 | 1,033 | ||
Domino's Pizza, Inc. | 16,690 | 3,027 | Clorox Co. (The) | 14,719 | 1,968 | ||
DR Horton, Inc. | 293,874 | 9,666 | Coca-Cola Co. (The) | 46,997 | 2,028 | ||
eBay, Inc.(Æ)(Û) | 65,512 | 2,189 | Coca-Cola European Partners PLC | 10,284 | 397 | ||
Estee Lauder Cos., Inc. (The) Class A | 136,203 | 11,869 | Colgate-Palmolive Co. | 85,844 | 6,184 | ||
Fiat Chrysler Automobiles NV(Æ) | 144,242 | 1,640 | Conagra Brands, Inc. | 27,926 | 1,083 | ||
Foot Locker, Inc. | 33,773 | 2,612 | Cosan, Ltd. Class A | 82,983 | 638 | ||
Ford Motor Co. | 39,150 | 449 | CVS Health Corp. | 188,574 | 15,546 | ||
General Motors Co.(Û) | 368,895 | 12,779 | Dean Foods Co. | 75,119 | 1,483 | ||
Goodyear Tire & Rubber Co. (The) | 75,557 | 2,738 | Dr Pepper Snapple Group, Inc. | 82,794 | 7,588 | ||
Hanesbrands, Inc. | 111,228 | 2,426 | Ingredion, Inc. | 14,795 | 1,832 | ||
Hasbro, Inc. | 4,398 | 436 | JM Smucker Co. (The) | 33,940 | 4,301 | ||
Home Depot, Inc. (The) | 177,017 | 27,632 | Kimberly-Clark Corp. | 51,510 | 6,683 | ||
IMAX Corp.(Æ) | 188,501 | 5,749 | Kraft Heinz Co. (The) | 60,591 | 5,477 | ||
Kohl's Corp. | 25,005 | 976 | Kroger Co. (The) | 562,040 | 16,665 | ||
Lear Corp. | 23,293 | 3,323 | Molson Coors Brewing Co. Class B | 11,755 | 1,127 | ||
Lennar Corp. Class A | 8,341 | 421 | Mondelez International, Inc. Class A | 34,926 | 1,573 | ||
Lowe's Cos., Inc. | 28,757 | 2,441 | Monster Beverage Corp.(Æ) | 281,328 | 12,767 | ||
Macy's, Inc. | 33,964 | 992 | Nu Skin Enterprises, Inc. Class A | 28,181 | 1,556 | ||
Magna International, Inc. Class A | 74,193 | 3,099 | PepsiCo, Inc. | 148,969 | 16,875 | ||
Marriott International, Inc. Class A | 10,970 | 1,036 | Philip Morris International, Inc. | 219,613 | 24,342 | ||
McDonald's Corp. | 47,360 | 6,627 | Procter & Gamble Co. (The) | 38,453 | 3,358 | ||
Meredith Corp. | 14,765 | 865 | Sysco Corp. | 2,405 | 127 | ||
Michael Kors Holdings, Ltd.(Æ) | 40,993 | 1,530 | Tyson Foods, Inc. Class A | 97,300 | 6,253 | ||
Netflix, Inc.(Æ) | 14,201 | 2,161 | US Foods Holding Corp.(Æ) | 5,600 | 158 | ||
Nike, Inc. Class B | 35,668 | 1,976 | Walgreens Boots Alliance, Inc. | 5,284 | 457 | ||
Nordstrom, Inc. | 27,018 | 1,304 | |||||
Norwegian Cruise Line Holdings, Ltd.(Æ) | 49,126 | 2,649 | 168,360 | ||||
NVR, Inc.(Æ) | 2,963 | 6,256 | |||||
Office Depot, Inc. | 221,535 | 1,101 | Energy - 6.7% | ||||
O'Reilly Automotive, Inc.(Æ) | 53,870 | 13,368 | Anadarko Petroleum Corp. | 88,849 | 5,066 | ||
Priceline Group, Inc. (The)(Æ) | 1,390 | 2,567 | Apache Corp. | 86,476 | 4,206 | ||
PulteGroup, Inc. | 142,494 | 3,230 | Baker Hughes, Inc. | 11,477 | 681 | ||
Regal Entertainment Group Class A | 3,463 | 76 | BP PLC - ADR | 752,995 | 25,843 | ||
Canadian Natural Resources, Ltd. | 234,512 | 7,474 |
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 63
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Cenovus Energy, Inc. | 67,630 | 675 | CBOE Holdings, Inc. | 44,928 | 3,703 | ||
Chevron Corp. | 190,674 | 20,345 | CBRE Group, Inc. Class A(Æ) | 49,013 | 1,755 | ||
ConocoPhillips | 260,069 | 12,460 | Charles Schwab Corp. (The) | 22,849 | 888 | ||
CONSOL Energy, Inc.(Æ) | 91,625 | 1,391 | Chubb, Ltd. | 6,077 | 834 | ||
Core Laboratories NV | 4,031 | 447 | Citigroup, Inc. | 423,861 | 25,059 | ||
Devon Energy Corp. | 225,096 | 8,889 | Citizens Financial Group, Inc.(Û) | 98,872 | 3,630 | ||
Enbridge, Inc. | 28,526 | 1,182 | Comerica, Inc. | 30,700 | 2,171 | ||
Ensco PLC Class A | 113,590 | 896 | Crown Castle International Corp.(ö) | 20,695 | 1,958 | ||
EOG Resources, Inc. | 17,877 | 1,654 | Dun & Bradstreet Corp. (The) | 20,419 | 2,238 | ||
Exxon Mobil Corp. | 441,438 | 36,043 | East West Bancorp, Inc. | 2,439 | 132 | ||
First Solar, Inc.(Æ) | 5,871 | 174 | Equity Commonwealth(Æ)(ö) | 24,220 | 775 | ||
Halliburton Co. | 15,420 | 708 | Equity LifeStyle Properties, Inc. Class A(ö) | 4,395 | 356 | ||
Helmerich & Payne, Inc. | 26,324 | 1,596 | Equity Residential(ö) | 111,115 | 7,176 | ||
Hess Corp. | 6,029 | 294 | Everest Re Group, Ltd. | 11,607 | 2,922 | ||
Kinder Morgan, Inc. | 30,011 | 619 | First American Financial Corp. | 6,277 | 272 | ||
Marathon Petroleum Corp. | 56,519 | 2,879 | First Data Corp. Class A(Æ) | 145,713 | 2,276 | ||
Murphy Oil Corp. | 31,081 | 814 | First Financial Bankshares, Inc. | 1,020 | 41 | ||
Nabors Industries, Ltd. | 112,036 | 1,158 | Forest City Realty Trust, Inc. Class A(ö) | 35,155 | 795 | ||
National Oilwell Varco, Inc. | 11,584 | 405 | Goldman Sachs Group, Inc. (The) | 42,489 | 9,509 | ||
Noble Energy, Inc. | 25,679 | 830 | Hanover Insurance Group, Inc. (The) | 16,609 | 1,466 | ||
Occidental Petroleum Corp. | 207,337 | 12,760 | Hartford Financial Services Group, Inc. | 52,766 | 2,552 | ||
Oceaneering International, Inc. | 81,066 | 2,139 | HCP, Inc.(ö) | 235,547 | 7,384 | ||
Patterson-UTI Energy, Inc. | 65,025 | 1,408 | Hospitality Properties Trust(ö) | 44,028 | 1,401 | ||
PBF Energy, Inc. Class A | 212,754 | 4,749 | Host Hotels & Resorts, Inc.(ö) | 81,858 | 1,469 | ||
Phillips 66 | 209,802 | 16,692 | Intercontinental Exchange, Inc. | 190,906 | 11,493 | ||
Pioneer Natural Resources Co. | 29,882 | 5,169 | Jones Lang LaSalle, Inc. | 1,047 | 120 | ||
Rowan Cos. PLC Class A(Æ) | 100,833 | 1,419 | JPMorgan Chase & Co.(Û) | 510,765 | 44,437 | ||
Schlumberger, Ltd. | 112,742 | 8,184 | KeyCorp | 743,418 | 13,560 | ||
Southwestern Energy Co.(Æ) | 135,130 | 1,015 | KKR & Co., LP | 428,504 | 8,133 | ||
TechnipFMC PLC(Æ) | 2,273 | 69 | LaSalle Hotel Properties(ö) | 53,094 | 1,516 | ||
Tesoro Corp. | 23,541 | 1,876 | Lazard, Ltd. Class A | 21,306 | 915 | ||
Valero Energy Corp.(Û) | 70,780 | 4,573 | Liberty Property Trust(ö) | 4,375 | 178 | ||
World Fuel Services Corp. | 7,715 | 284 | Lincoln National Corp. | 52,469 | 3,459 | ||
197,066 | Loews Corp. | 261,400 | 12,186 | ||||
M&T Bank Corp. | 42,500 | 6,605 | |||||
Financial Services - 19.8% | Mack-Cali Realty Corp.(ö) | 62,894 | 1,701 | ||||
Affiliated Managers Group, Inc. | 70,092 | 11,607 | Markel Corp.(Æ) | 358 | 347 | ||
Aflac, Inc. | 5,354 | 401 | MasterCard, Inc. Class A | 300,014 | 34,898 | ||
AGNC Investment Corp. | 33,625 | 708 | MetLife, Inc. | 56,180 | 2,911 | ||
Allied World Assurance Co. Holdings AG | 4,989 | 265 | Mid-America Apartment Communities, Inc. | ||||
Allstate Corp. (The) | 153,584 | 12,485 | (ö) | 2,105 | 209 | ||
American Express Co. | 233,000 | 18,465 | Morgan Stanley | 205,175 | 8,898 | ||
American Financial Group, Inc. | 1,794 | 175 | New York Community Bancorp, Inc. | 15,448 | 205 | ||
American International Group, Inc. | 128,485 | 7,826 | OneMain Holdings, Inc.(Æ) | 58,098 | 1,355 | ||
Annaly Capital Management, Inc.(ö) | 61,996 | 732 | Piedmont Office Realty Trust, Inc. Class A(ö) | 81,120 | 1,772 | ||
Arch Capital Group, Ltd.(Æ) | 25,566 | 2,479 | PNC Financial Services Group, Inc. (The) | 146,537 | 17,548 | ||
Aspen Insurance Holdings, Ltd. | 67,251 | 3,521 | Popular, Inc. | 124,811 | 5,231 | ||
Assured Guaranty, Ltd. | 59,304 | 2,261 | Principal Financial Group, Inc. | 7,089 | 462 | ||
Axis Capital Holdings, Ltd. | 31,736 | 2,091 | ProAssurance Corp. | 4,210 | 261 | ||
Bank of America Corp.(Û) | 2,223,021 | 51,885 | Progressive Corp. (The) | 169,398 | 6,728 | ||
Bank of New York Mellon Corp. (The) | 15,295 | 720 | Prologis, Inc.(ö) | 7,812 | 425 | ||
BB&T Corp. | 122,026 | 5,269 | Prudential Financial, Inc. | 37,255 | 3,987 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 116,607 | 19,265 | Radian Group, Inc. | 93,216 | 1,573 | ||
BlackRock, Inc. Class A | 2,136 | 821 | Realty Income Corp.(ö) | 35,200 | 2,054 | ||
Blackstone Group, LP (The) | 201,482 | 6,214 | Regions Financial Corp. | 75,614 | 1,040 | ||
BNP Paribas - ADR | 105,721 | 3,737 | Reinsurance Group of America, Inc. Class A | 61,262 | 7,660 | ||
Camden Property Trust(ö) | 24,800 | 2,042 | RLJ Lodging Trust(ö) | 67,481 | 1,450 | ||
CBL & Associates Properties, Inc.(ö) | 150,314 | 1,390 | Santander Consumer USA Holdings, Inc.(Æ) | 259,612 | 3,307 |
See accompanying notes which are an integral part of the financial statements.
64 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
SBA Communications Corp.(Æ)(ö) | 84,604 | 10,702 | Merck & Co., Inc. | 553,985 | 34,530 | ||
Simon Property Group, Inc.(ö) | 52,467 | 8,671 | Mylan NV(Æ) | 67,589 | 2,524 | ||
Starwood Property Trust, Inc.(ö) | 29,345 | 666 | Pfizer, Inc. | 849,895 | 28,828 | ||
State Street Corp. | 244,500 | 20,514 | Quest Diagnostics, Inc. | 26,660 | 2,813 | ||
SunTrust Banks, Inc.(Û) | 176,895 | 10,049 | Sanofi - ADR | 204,900 | 9,692 | ||
Synchrony Financial | 164,602 | 4,576 | Stryker Corp. | 66,915 | 9,125 | ||
Torchmark Corp. | 4,582 | 351 | Thermo Fisher Scientific, Inc. | 43,285 | 7,156 | ||
Travelers Cos., Inc. (The) | 68,528 | 8,337 | United Therapeutics Corp.(Æ) | 12,983 | 1,632 | ||
Two Harbors Investment Corp.(ö) | 209,478 | 2,093 | UnitedHealth Group, Inc. | 161,778 | 28,292 | ||
US Bancorp | 173,123 | 8,878 | VCA, Inc.(Æ) | 929 | 85 | ||
Visa, Inc. Class A | 13,390 | 1,221 | Zimmer Biomet Holdings, Inc. | 3,284 | 393 | ||
Voya Financial, Inc. | 182,612 | 6,826 | Zoetis, Inc. Class A | 348,444 | 19,551 | ||
Wells Fargo & Co. | 809,288 | 43,572 | 344,512 | ||||
Western Alliance Bancorp(Æ) | 2,694 | 129 | |||||
Weyerhaeuser Co.(ö) | 17,894 | 606 | Materials and Processing - 3.2% | ||||
White Mountains Insurance Group, Ltd. | 274 | 235 | Air Products & Chemicals, Inc. | 3,504 | 492 | ||
WP Glimcher, Inc.(ö) | 71,404 | 628 | Albemarle Corp. | 6,339 | 690 | ||
WR Berkley Corp. | 6,855 | 466 | Cabot Corp. | 35,309 | 2,125 | ||
XL Group, Ltd. | 290,210 | 12,145 | Celanese Corp. Class A | 81,200 | 7,068 | ||
582,410 | Cliffs Natural Resources, Inc.(Æ) | 87,032 | 585 | ||||
Crown Holdings, Inc.(Æ) | 66,832 | 3,749 | |||||
Health Care - 11.7% | Domtar Corp. | 7,363 | 292 | ||||
Abbott Laboratories | 33,163 | 1,447 | Dow Chemical Co. (The) | 207,366 | 13,023 | ||
AbbVie, Inc. | 50,824 | 3,351 | Eastman Chemical Co. | 47,749 | 3,808 | ||
Aetna, Inc. | 6,663 | 900 | Ecolab, Inc. | 23,961 | 3,093 | ||
Agilent Technologies, Inc. | 5,866 | 323 | EI du Pont de Nemours & Co. | 188,980 | 15,071 | ||
Allergan PLC(Æ) | 999 | 244 | Huntsman Corp. | 32,943 | 816 | ||
Allscripts Healthcare Solutions, Inc.(Æ) | 75,979 | 909 | International Flavors & Fragrances, Inc. | 32,642 | 4,524 | ||
Alnylam Pharmaceuticals, Inc.(Æ) | 57,681 | 3,092 | Louisiana-Pacific Corp.(Æ) | 98,483 | 2,535 | ||
AmerisourceBergen Corp. Class A | 3,065 | 251 | LyondellBasell Industries NV Class A | 54,918 | 4,655 | ||
Amgen, Inc.(Û) | 20,639 | 3,371 | NewMarket Corp. | 1,400 | 659 | ||
Anthem, Inc. | 83,568 | 14,866 | Newmont Mining Corp. | 8,687 | 294 | ||
Baxter International, Inc. | 211,090 | 11,753 | Owens Corning(Û) | 54,936 | 3,343 | ||
Becton Dickinson and Co. | 4,575 | 855 | Packaging Corp. of America | 14,376 | 1,420 | ||
Biogen, Inc.(Æ)(Û) | 55,868 | 15,152 | PPG Industries, Inc. | 95,739 | 10,516 | ||
Bristol-Myers Squibb Co. | 23,442 | 1,314 | Praxair, Inc. | 5,732 | 716 | ||
Cardinal Health, Inc. | 91,331 | 6,630 | Reliance Steel & Aluminum Co. | 43,391 | 3,420 | ||
Celgene Corp.(Æ) | 15,451 | 1,917 | Sherwin-Williams Co. (The) | 15,077 | 5,046 | ||
Cerner Corp.(Æ) | 183,097 | 11,856 | Silgan Holdings, Inc. | 19,751 | 1,197 | ||
Cigna Corp. | 28,961 | 4,529 | Steel Dynamics, Inc. | 26,486 | 957 | ||
CR Bard, Inc. | 1,967 | 605 | Teck Resources, Ltd. Class B | 14,039 | 291 | ||
DaVita HealthCare Partners, Inc.(Æ) | 19,593 | 1,352 | Trinseo SA | 22,469 | 1,492 | ||
Eli Lilly & Co. | 88,113 | 7,231 | Westlake Chemical Corp. | 1,941 | 121 | ||
Endo International PLC(Æ) | 72,897 | 829 | WestRock Co. | 6,634 | 355 | ||
Envision Healthcare Corp.(Æ) | 95,338 | 5,342 | 92,353 | ||||
Exact Sciences Corp.(Æ) | 41,102 | 1,233 | |||||
Express Scripts Holding Co.(Æ) | 130,143 | 7,983 | Producer Durables - 12.5% | ||||
Gilead Sciences, Inc.(Û) | 136,352 | 9,347 | Accenture PLC Class A | 167,398 | 20,305 | ||
HCA Holdings, Inc.(Æ) | 2,946 | 248 | Adient PLC | 101,405 | 7,459 | ||
Horizon Pharma PLC(Æ) | 152,634 | 2,348 | Advanced Energy Industries, Inc.(Æ) | 21,441 | 1,582 | ||
Humana, Inc. | 3,701 | 822 | AECOM(Æ) | 244,716 | 8,372 | ||
Jazz Pharmaceuticals PLC(Æ) | 10,918 | 1,739 | AerCap Holdings NV(Æ) | 147,984 | 6,809 | ||
Johnson & Johnson | 338,153 | 41,752 | AGCO Corp. | 50,111 | 3,207 | ||
Laboratory Corp. of America Holdings(Æ) | 7,350 | 1,030 | American Airlines Group, Inc. | 171,556 | 7,312 | ||
Mallinckrodt PLC(Æ) | 67,369 | 3,161 | Avery Dennison Corp. | 1,487 | 124 | ||
Masimo Corp.(Æ) | 23,286 | 2,392 | Babcock & Wilcox Co. (The) Class W(Æ) | 36,732 | 1,806 | ||
McKesson Corp. | 16,699 | 2,309 | Boeing Co. (The) | 33,817 | 6,250 | ||
Medtronic PLC | 329,858 | 27,408 | CH Robinson Worldwide, Inc. | 1,546 | 112 | ||
. |
See accompanying notes which are an integral part of the financial statements
U.S. Strategic Equity Fund 65
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Chicago Bridge & Iron Co. | 58,073 | 1,747 | Apple, Inc.(Û) | 268,989 | 38,640 | ||
Danaher Corp. | 251,818 | 20,984 | Applied Materials, Inc.(Û) | 104,766 | 4,255 | ||
Delphi Automotive PLC | 61,960 | 4,982 | Arrow Electronics, Inc.(Æ) | 55,072 | 3,883 | ||
Delta Air Lines, Inc.(Û) | 369,050 | 16,770 | ASML Holding NV Class G | 48,167 | 6,351 | ||
Dycom Industries, Inc.(Æ) | 5,214 | 551 | Aspen Technology, Inc.(Æ) | 68,456 | 4,209 | ||
Eaton Corp. PLC | 41,100 | 3,109 | Avnet, Inc. | 121,010 | 4,682 | ||
Euronav NV | 78,270 | 618 | Broadcom, Ltd. | 29,448 | 6,503 | ||
FedEx Corp.(Û) | 56,466 | 10,712 | CA, Inc. | 52,186 | 1,713 | ||
Flir Systems, Inc. | 11,941 | 439 | Cadence Design Systems, Inc.(Æ) | 223,308 | 7,273 | ||
Fluor Corp. | 81,000 | 4,157 | Cirrus Logic, Inc.(Æ) | 15,820 | 1,018 | ||
Fortive Corp. | 191,600 | 12,121 | Cisco Systems, Inc. | 322,039 | 10,972 | ||
General Electric Co. | 64,108 | 1,858 | Corning, Inc. | 169,061 | 4,877 | ||
Hawaiian Holdings, Inc.(Æ) | 27,616 | 1,499 | Cree, Inc.(Æ) | 15,910 | 348 | ||
Honeywell International, Inc. | 35,700 | 4,682 | DXC Technology Co. | 88,084 | 6,636 | ||
Hub Group, Inc. Class A(Æ) | 11,139 | 436 | Entegris, Inc.(Æ) | 12,210 | 303 | ||
Huntington Ingalls Industries, Inc. | 1,473 | 296 | F5 Networks, Inc.(Æ) | 37,150 | 4,797 | ||
Insperity, Inc. | 8,312 | 759 | Facebook, Inc. Class A(Æ) | 250,686 | 37,666 | ||
Jacobs Engineering Group, Inc. | 21,100 | 1,159 | FireEye, Inc.(Æ) | 19,600 | 245 | ||
JB Hunt Transport Services, Inc. | 36,100 | 3,237 | Flextronics International, Ltd.(Æ) | 14,811 | 229 | ||
Johnson Controls International PLC | 350,369 | 14,565 | Gartner, Inc.(Æ) | 45,700 | 5,214 | ||
Lamb Weston Holdings, Inc. | 24,500 | 1,023 | Harris Corp. | 45,024 | 5,038 | ||
Landstar System, Inc. | 61,470 | 5,253 | Hewlett Packard Enterprise Co. | 90,837 | 1,692 | ||
ManpowerGroup, Inc. | 63,600 | 6,422 | HP, Inc. | 164,925 | 3,104 | ||
National Instruments Corp. | 21,783 | 760 | IAC/InterActiveCorp(Æ) | 28,911 | 2,400 | ||
Navistar International Corp.(Æ) | 32,700 | 880 | Intel Corp. | 674,655 | 24,389 | ||
Norfolk Southern Corp. | 100,000 | 11,749 | International Business Machines Corp. | 84,677 | 13,573 | ||
Northrop Grumman Corp. | 1,682 | 414 | Intuit, Inc. | 159,998 | 20,033 | ||
Parker-Hannifin Corp. | 586 | 94 | IPG Photonics Corp.(Æ) | 22,231 | 2,808 | ||
Quanta Services, Inc.(Æ) | 83,101 | 2,945 | Jabil Circuit, Inc. | 41,453 | 1,203 | ||
Raytheon Co. | 78,185 | 12,135 | Juniper Networks, Inc. | 103,400 | 3,109 | ||
Republic Services, Inc. Class A | 2,561 | 161 | Lam Research Corp.(Û) | 21,600 | 3,129 | ||
Rockwell Automation, Inc. | 66,301 | 10,432 | MACOM Technology Solutions Holdings, | ||||
Snap-on, Inc. | 35,776 | 5,994 | Inc.(Æ) | 710 | 35 | ||
Southwest Airlines Co. | 215,000 | 12,087 | Manhattan Associates, Inc.(Æ) | 5,635 | 263 | ||
Spirit AeroSystems Holdings, Inc. Class A | 42,199 | 2,412 | Marvell Technology Group, Ltd. | 422,913 | 6,352 | ||
Spirit Airlines, Inc.(Æ) | 26,856 | 1,538 | Micron Technology, Inc.(Æ) | 328,821 | 9,099 | ||
Stanley Black & Decker, Inc. | 106,200 | 14,459 | Microsoft Corp.(Û) | 880,093 | 60,251 | ||
Textron, Inc. | 40,300 | 1,880 | MicroStrategy, Inc. Class A(Æ) | 8,046 | 1,530 | ||
TransDigm Group, Inc. | 46,203 | 11,400 | NCR Corp.(Æ) | 36,202 | 1,493 | ||
Trimble Navigation, Ltd.(Æ) | 135,786 | 4,811 | NetApp, Inc. | 18,651 | 743 | ||
Union Pacific Corp. | 373,942 | 41,866 | NVIDIA Corp. | 8,604 | 897 | ||
United Continental Holdings, Inc.(Æ)(Û) | 40,663 | 2,855 | ON Semiconductor Corp.(Æ) | 85,300 | 1,210 | ||
United Rentals, Inc.(Æ) | 7,939 | 871 | Oracle Corp. | 887,264 | 39,891 | ||
United Technologies Corp. | 135,200 | 16,087 | QUALCOMM, Inc. | 391,243 | 21,025 | ||
Verisk Analytics, Inc. Class A(Æ) | 124,989 | 10,350 | Red Hat, Inc.(Æ) | 200,284 | 17,641 | ||
Wabtec Corp. | 80,827 | 6,781 | Sanmina Corp.(Æ) | 33,725 | 1,256 | ||
Waste Management, Inc. | 4,823 | 351 | Seagate Technology PLC | 9,839 | 415 | ||
Waters Corp.(Æ) | 2,441 | 415 | Synaptics, Inc.(Æ) | 52,600 | 2,881 | ||
WW Grainger, Inc. | 25,270 | 4,869 | Synopsys, Inc.(Æ) | 89,055 | 6,563 | ||
Xylem, Inc. | 130,982 | 6,734 | Tableau Software, Inc. Class A(Æ) | 15,600 | 837 | ||
366,047 | Take-Two Interactive Software, Inc.(Æ) | 9,291 | 584 | ||||
Tech Data Corp.(Æ) | 47,734 | 4,566 | |||||
Technology - 18.6% | Teradyne, Inc.(Û) | 111,376 | 3,928 | ||||
Adobe Systems, Inc.(Æ) | 134,640 | 18,007 | Texas Instruments, Inc. | 243,054 | 19,245 | ||
Alphabet, Inc. Class A(Æ) | 33,226 | 30,718 | Twitter, Inc.(Æ) | 29,200 | 481 | ||
Alphabet, Inc. Class C(Æ) | 60,915 | 55,187 | VeriSign, Inc.(Æ) | 27,920 | 2,483 | ||
Amkor Technology, Inc.(Æ) | 60,861 | 717 | Viavi Solutions, Inc. Class W(Æ) | 131,912 | 1,319 | ||
Analog Devices, Inc. | 7,433 | 566 | Vishay Intertechnology, Inc. | 114,919 | 1,879 |
See accompanying notes which are an integral part of the financial statements.
66 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) or | Value | Amount ($) or | Value | ||||||||
Shares | $ | Shares | $ | ||||||||
Western Digital Corp. | 9,780 | 871 | Coty, Inc. Class A | (48,838 | ) | (872 | ) | ||||
Xilinx, Inc. | 5,303 | 335 | Fitbit, Inc. Class A(Æ) | (79,664 | ) | (455 | ) | ||||
Zynga, Inc. Class A(Æ) | 818,240 | 2,365 | Pandora Media, Inc.(Æ) | (25,923 | ) | (281 | ) | ||||
545,925 | Tesla, Inc.(Æ) | (2,878 | ) | (904 | ) | ||||||
Utilities - 4.7% | Under Armour, Inc. Class A(Æ) | (45,274 | ) | (973 | ) | ||||||
AES Corp. | 215,890 | 2,442 | Zillow Group, Inc. Class A(Æ) | (16,142 | ) | (621 | ) | ||||
Ameren Corp. | 3,575 | 195 | (5,512 | ) | |||||||
American Electric Power Co., Inc. | 89,327 | 6,059 | Consumer Staples – (0.0)% | ||||||||
American Water Works Co., Inc. | 57,839 | 4,613 | Snyders-Lance, Inc. | (16,630 | ) | (586 | ) | ||||
AT&T, Inc. | 953,000 | 37,767 | |||||||||
Calpine Corp.(Æ) | 198,548 | 2,025 | Energy - (0.1)% | ||||||||
CenterPoint Energy, Inc. | 3,917 | 112 | First Solar, Inc.(Æ) | (32,596 | ) | (963 | ) | ||||
CMS Energy Corp. | 4,437 | 201 | Frank's International NV | (83,260 | ) | (758 | ) | ||||
Consolidated Edison, Inc. | 13,352 | 1,059 | |||||||||
Dominion Resources, Inc. | 3,009 | 233 | SunPower Corp. Class A(Æ) | (54,646 | ) | (379 | ) | ||||
DTE Energy Co. | 22,598 | 2,364 | Weatherford International PLC(Æ) | (86,341 | ) | (498 | ) | ||||
Duke Energy Corp. | 105,000 | 8,662 | (2,598 | ) | |||||||
Edison International | 16,360 | 1,308 | Financial Services - (0.4)% | ||||||||
Entergy Corp. | 229,533 | 17,504 | Bank of the Ozarks, Inc. | (22,147 | ) | (1,051 | ) | ||||
Eversource Energy | 63,900 | 3,796 | Chemical Financial Corp. | (21,105 | ) | (1,002 | ) | ||||
Great Plains Energy, Inc. | 26,725 | 791 | |||||||||
j2 Global, Inc. | 13,970 | 1,261 | First Financial Bankshares, Inc. | (29,287 | ) | (1,170 | ) | ||||
MDU Resources Group, Inc. | 25,509 | 686 | GEO Group, Inc. (The)(ö) | (16,091 | ) | (536 | ) | ||||
NextEra Energy, Inc. | 74,993 | 10,016 | Interactive Brokers Group, Inc. Class A | (14,016 | ) | (488 | ) | ||||
NiSource, Inc. | 138,672 | 3,363 | Iron Mountain, Inc.(ö) | (24,877 | ) | (865 | ) | ||||
OGE Energy Corp. | 8,620 | 300 | LendingClub Corp.(Æ) | (25,733 | ) | (151 | ) | ||||
ONE Gas, Inc. | 5,151 | 355 | Mercury General Corp. | (8,398 | ) | (516 | ) | ||||
PG&E Corp. | 63,198 | 4,237 | |||||||||
Pinnacle West Capital Corp. | 31,938 | 2,718 | New York Community Bancorp, Inc. | (69,056 | ) | (918 | ) | ||||
PPL Corp. | 1,810 | 69 | Pinnacle Financial Partners, Inc. | (12,425 | ) | (795 | ) | ||||
Southern Co. (The) | 10,091 | 503 | Realty Income Corp.(ö) | (19,055 | ) | (1,112 | ) | ||||
Telephone & Data Systems, Inc. | 30,184 | 829 | South State Corp. | (11,425 | ) | (1,007 | ) | ||||
T-Mobile US, Inc.(Æ) | 95,718 | 6,439 | United Bankshares, Inc. | (26,515 | ) | (1,058 | ) | ||||
Verizon Communications, Inc. | 414,776 | 19,042 | |||||||||
Westar Energy, Inc. Class A | 3,230 | 168 | (10,669 | ) | |||||||
Xcel Energy, Inc. | 2,093 | 94 | Health Care - (0.2)% | ||||||||
Acadia Healthcare Co., Inc.(Æ) | (4,721 | ) | (206 | ) | |||||||
139,211 | Alnylam Pharmaceuticals, Inc.(Æ) | (17,429 | ) | (934 | ) | ||||||
Total Common Stocks | DexCom, Inc.(Æ) | (10,674 | ) | (832 | ) | ||||||
(cost $2,325,031) | 2,807,188 | Insulet Corp.(Æ) | (8,518 | ) | (370 | ) | |||||
Ironwood Pharmaceuticals, Inc. Class A(Æ) | (29,736 | ) | (485 | ) | |||||||
Short-Term Investments - 5.6% | Medicines Co. (The)(Æ) | (15,066 | ) | (743 | ) | ||||||
U.S. Cash Management Fund | 156,733,183 | (8) | 156,765 | Nektar Therapeutics(Æ) | (19,422 | ) | (368 | ) | |||
United States Treasury Bills | OPKO Health, Inc.(Æ) | (115,980 | ) | (901 | ) | ||||||
0.616% due 05/11/17 (~)(§) | 3,400 | 3,399 | Penumbra, Inc.(Æ) | (6,114 | ) | (523 | ) | ||||
0.655% due 05/25/17 (~)(§) | 4,300 | 4,298 | (5,362 | ) | |||||||
Total Short-Term Investments | Materials and Processing – (0.0)% | ||||||||||
(cost $164,462) | 164,462 | Acuity Brands, Inc. | (2,816 | ) | (496 | ) | |||||
Total Investments 101.2% | Producer Durables - (0.1)% | ||||||||||
(identified cost $2,489,493) | 2,971,650 | IHS Markit, Ltd.(Æ) | (30,411 | ) | (1,320 | ) | |||||
Securities Sold Short - (1.4)% | National Instruments Corp. | (9,760 | ) | (341 | ) | ||||||
Consumer Discretionary - (0.2)% | Square, Inc. Class A(Æ) | (49,362 | ) | (900 | ) | ||||||
Autoliv, Inc. | (5,349 | ) | (536 | ) | Welbilt, Inc.(Æ) | (26,223 | ) | (538 | ) | ||
CarMax, Inc.(Æ) | (14,867 | ) | (870 | ) |
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 67
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||
Principal | Fair | |||||
Amount ($) or | Value | |||||
Shares | $ | |||||
(3,099 | ) | |||||
Technology - (0.4)% | ||||||
Advanced Micro Devices, Inc.(Æ) | (61,740 | ) | (821 | ) | ||
Arista Networks, Inc.(Æ) | (6,357 | ) | (888 | ) | ||
Atlassian Corp. PLC Class A(Æ) | (28,655 | ) | (988 | ) | ||
Cavium, Inc.(Æ) | (5,763 | ) | (397 | ) | ||
Ellie Mae, Inc.(Æ) | (8,039 | ) | (818 | ) | ||
FireEye, Inc.(Æ) | (18,919 | ) | (237 | ) | ||
MACOM Technology Solutions Holdings, | ||||||
Inc.(Æ) | (15,509 | ) | (758 | ) | ||
Palo Alto Networks, Inc.(Æ) | (7,960 | ) | (863 | ) | ||
Paycom Software, Inc.(Æ) | (8,610 | ) | (519 | ) | ||
Pegasystems, Inc. | (11,605 | ) | (528 | ) | ||
Pure Storage, Inc. Class A(Æ) | (48,859 | ) | (518 | ) | ||
Shopify, Inc. Class A(Æ) | (11,494 | ) | (873 | ) | ||
Twilio, Inc. Class A(Æ) | (27,638 | ) | (913 | ) | ||
Twitter, Inc.(Æ) | (30,148 | ) | (497 | ) | ||
Universal Display Corp. | (10,025 | ) | (896 | ) | ||
Zendesk, Inc.(Æ) | (22,495 | ) | (647 | ) | ||
(11,161 | ) | |||||
Total Securities Sold Short | ||||||
(proceeds $39,025) | (39,483 | ) | ||||
Other Assets and Liabilities, Net | ||||||
- 0.2% | 5,285 | |||||
Net Assets - 100.0% | 2,937,452 |
See accompanying notes which are an integral part of the financial statements.
68 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||||||||||||
Amounts in thousands (except contract amounts) | |||||||||||||||||
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||||||||||
Contracts | Amount | Date | $ | ||||||||||||||
S&P 500 E-Mini Index Futures | 777 | USD | 92,483 | 06/17 | 1,410 | ||||||||||||
S&P Consumer Discretionary Select Sector Index Futures | 57 | USD | 5,177 | 06/17 | 114 | ||||||||||||
S&P Consumer Staples Select Sector Index Futures | 92 | USD | 5,082 | 06/17 | 7 | ||||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 1,531 | ||||||||||||||||
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Consumer Discretionary | $ | 371,304 | $ | — | $ | — | $ | — | $ | 371,304 | 12.7 | ||||||
Consumer Staples | 168,360 | — | — | — | 168,360 | 5.7 | |||||||||||
Energy | 197,066 | — | — | — | 197,066 | 6.7 | |||||||||||
Financial Services | 582,410 | — | — | — | 582,410 | 19.8 | |||||||||||
Health Care | 344,512 | — | — | — | 344,512 | 11.7 | |||||||||||
Materials and Processing | 92,353 | — | — | — | 92,353 | 3.2 | |||||||||||
Producer Durables | 366,047 | — | — | — | 366,047 | 12.5 | |||||||||||
Technology | 545,925 | — | — | — | 545,925 | 18.6 | |||||||||||
Utilities | 139,211 | — | — | — | 139,211 | 4.7 | |||||||||||
Short-Term Investments | — | 7,697 | — | 156,765 | 164,462 | 5.6 | |||||||||||
Total Investments | 2,807,188 | 7,697 | — | 156,765 | 2,971,650 | 101.2 | |||||||||||
Securities Sold Short** | (39,483 | ) | — | — | — | (39,483 | ) | (1.4 | ) | ||||||||
Other Assets and Liabilities, Net | 0.2 | ||||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 1,531 | — | — | — | 1,531 | 0.1 | |||||||||||
A | |||||||||||||||||
Total Other Financial Instruments* | $ | 1,531 | $ | — | $ | — | $ | — | $ | 1,531 |
* Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
** Refer to Schedule of Investments for detailed sector breakout.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 69
Russell Investment Company
U.S. Strategic Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 1,531 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 14,406 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 2,461 |
* Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
70 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||
Gross | Net Amounts | |||||||||||
Amounts | of Liabilities | |||||||||||
Gross | Offset in the | Presented in | ||||||||||
Amounts of | Statement of | the Statement | ||||||||||
Recognized | Assets and | of Assets and | ||||||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | ||||||||
Futures Contracts | Variation margin on futures contracts | $ | 245 | $ | — | $ | 245 | |||||
Short Sales | Securities sold short, at market value | 39,483 | — | 39,483 | ||||||||
Total Financial and Derivative Liabilities | 39,728 | — | 39,728 | |||||||||
Financial and Derivative Liabilities not subject to a netting agreement | (245 | ) | — | (245 | ) | |||||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 39,483 | $ | — | $ | 39,483 | ||||||
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | ||||||||||||
Gross Amounts Not Offset in | ||||||||||||
the Statement of Assets and | ||||||||||||
Liabilities | ||||||||||||
Net Amounts | ||||||||||||
of Liabilities | ||||||||||||
Presented in | ||||||||||||
the Statement | Financial and | |||||||||||
of Assets and | Derivative | Collateral | ||||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | ||||||||
State Street | 39,483 | $ | — | $ | 39,483 | $ | — | |||||
Total | $ | 39,483 | $ | — | $ | 39,483 | $ | — |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 71
Russell Investment Company
U.S. Strategic Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 2,489,493 |
Investments, at fair value(>) | 2,971,650 | |
Receivables: | ||
Dividends and interest | 2,514 | |
Dividends from affiliated funds | 69 | |
Investments sold | 17,329 | |
Fund shares sold | 3,871 | |
Prepaid expenses | 31 | |
Total assets | 2,995,464 | |
Liabilities | ||
Payables: | ||
Due to custodian | 2 | |
Investments purchased | 13,817 | |
Fund shares redeemed | 1,915 | |
Accrued fees to affiliates | 1,793 | |
Other accrued expenses | 757 | |
Variation margin on futures contracts | 245 | |
Securities sold short, at fair value(‡) | 39,483 | |
Total liabilities | 58,012 | |
Net Assets | $ | 2,937,452 |
See accompanying notes which are an integral part of the financial statements.
72 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 1,855 | |
Accumulated net realized gain (loss) | 153,004 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 482,157 | ||
Futures contracts | 1,531 | ||
Securities sold short | (458 | ) | |
Shares of beneficial interest | 2,243 | ||
Additional paid-in capital | 2,297,120 | ||
Net Assets | $ | 2,937,452 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 13.07 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 13.87 | |
Class A — Net assets | $ | 5,293,874 | |
Class A — Shares outstanding ($.01 par value) | 404,917 | ||
Net asset value per share: Class C(#) | $ | 13.03 | |
Class C — Net assets | $ | 16,793,527 | |
Class C — Shares outstanding ($.01 par value) | 1,288,911 | ||
Net asset value per share: Class E(#) | $ | 13.11 | |
Class E — Net assets | $ | 2,416,495 | |
Class E — Shares outstanding ($.01 par value) | 184,389 | ||
Net asset value per share: Class S(#) | $ | 13.10 | |
Class S — Net assets | $ | 2,907,579,837 | |
Class S — Shares outstanding ($.01 par value) | 222,020,008 | ||
Net asset value per share: Class T(#) | $ | 13.09 | |
Class T — Net assets | $ | 5,368,609 | |
Class T — Shares outstanding ($.01 par value) | 410,087 | ||
Amounts in thousands | |||
(‡) Proceeds on securities sold short | $ | 39,025 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 156,765 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 73
Russell Investment Company
U.S. Strategic Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 27,144 | |
Dividends from affiliated funds | 486 | ||
Interest | 16 | ||
Total investment income | 27,646 | ||
Expenses | |||
Advisory fees | 10,863 | ||
Administrative fees | 712 | ||
Custodian fees | 231 | ||
Distribution fees - Class A | 7 | ||
Distribution fees - Class C | 66 | ||
Transfer agent fees - Class A | 5 | ||
Transfer agent fees - Class C | 18 | ||
Transfer agent fees - Class E | 36 | ||
Transfer agent fees - Class S | 2,888 | ||
Transfer agent fees - Class T | 1 | ||
Professional fees | 67 | ||
Registration fees | 60 | ||
Shareholder servicing fees - Class C | 22 | ||
Shareholder servicing fees - Class E | 45 | ||
Trustees’ fees | 54 | ||
Printing fees | 136 | ||
Dividends from securities sold short | 144 | ||
Interest expense paid on securities sold short | 397 | ||
Miscellaneous | 14 | ||
Expenses before reductions | 15,766 | ||
Expense reductions | (3,735 | ) | |
Net expenses | 12,031 | ||
Net investment income (loss) | 15,615 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 182,351 | ||
Futures contracts | 14,406 | ||
Securities sold short | (2,105 | ) | |
Net realized gain (loss) | 194,652 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 161,719 | ||
Futures contracts | 2,461 | ||
Securities sold short | (3,371 | ) | |
Net change in unrealized appreciation (depreciation) | 160,809 | ||
Net realized and unrealized gain (loss) | 355,461 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 371,076 |
See accompanying notes which are an integral part of the financial statements.
74 U.S. Strategic Equity Fund
Russell Investment Company
U.S. Strategic Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 15,615 | $ | 44,524 | ||
Net realized gain (loss) | 194,652 | 129,071 | ||||
Net change in unrealized appreciation (depreciation) | 160,809 | (99,104 | ) | |||
Net increase (decrease) in net assets from operations | 371,076 | 74,491 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (24 | ) | (73 | ) | ||
Class C | (23 | ) | (60 | ) | ||
Class E | (252 | ) | (957 | ) | ||
Class S | (16,238 | ) | (42,773 | ) | ||
Class T | (—)** | — | ||||
From net realized gain | ||||||
Class A | (229 | ) | (337 | ) | ||
Class C | (773 | ) | (1,134 | ) | ||
Class E | (3,305 | ) | (5,259 | ) | ||
Class S | (121,176 | ) | (192,312 | ) | ||
Net decrease in net assets from distributions | (142,020 | ) | (242,905 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (133,436 | ) | (987,803 | ) | ||
Total Net Increase (Decrease) in Net Assets | 95,620 | (1,156,217 | ) | |||
Net Assets | ||||||
Beginning of period | 2,841,832 | 3,998,049 | ||||
End of period | $ | 2,937,452 | $ | 2,841,832 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 1,855 | $ | 2,777 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 75
Russell Investment Company
U.S. Strategic Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 21 | $ | 273 | 216 | $ | 2,544 | ||||||
Proceeds from reinvestment of distributions | 20 | 251 | 35 | 410 | ||||||||
Payments for shares redeemed | (158 | ) | (1,973 | ) | (261 | ) | (3,130 | ) | ||||
Net increase (decrease) | (117 | ) | (1,449 | ) | (10 | ) | (176 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 66 | 829 | 150 | 1,756 | ||||||||
Proceeds from reinvestment of distributions | 64 | 796 | 103 | 1,194 | ||||||||
Payments for shares redeemed | (345 | ) | (4,335 | ) | (524 | ) | (6,250 | ) | ||||
Net increase (decrease) | (215 | ) | (2,710 | ) | (271 | ) | (3,300 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 179 | 2,259 | 446 | 5,285 | ||||||||
Proceeds from reinvestment of distributions | 280 | 3,491 | 518 | 6,041 | ||||||||
Payments for shares redeemed | (6,413 | ) | (80,260 | ) | (3,136 | ) | (37,642 | ) | ||||
Net increase (decrease) | (5,954 | ) | (74,510 | ) | (2,172 | ) | (26,316 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 26,885 | 340,879 | 31,998 | 378,797 | ||||||||
Proceeds from reinvestment of distributions | 10,955 | 136,903 | 20,061 | 233,981 | ||||||||
Payments for shares redeemed | (42,028 | ) | (537,845 | ) | (132,329 | ) | (1,570,789 | ) | ||||
Net increase (decrease) | (4,188 | ) | (60,063 | ) | (80,270 | ) | (958,011 | ) | ||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 410 | 5,297 | — | — | ||||||||
Payments for shares redeemed | — | (1 | ) | — | — | |||||||
Net increase (decrease) | 410 | 5,296 | — | — | ||||||||
Total increase (decrease) | (10,064 | ) | $ | (133,436 | ) | (82,723 | ) | $ | (987,803 | ) | ||
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
76 U.S. Strategic Equity Fund
(This page intentionally left blank)
Russell Investment Company
U.S. Strategic Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class A | |||||||||||||||
April 30, 2017* | 12.10 | .05 | 1.52 | 1.57 | (.06 | ) | (.54 | ) | |||||||
October 31, 2016 | 12.59 | .13 | .15 | .28 | (.12 | ) | (.65 | ) | |||||||
October 31, 2015 | 13.42 | .10 | .35 | .45 | (.10 | ) | (1.18 | ) | |||||||
October 31, 2014 | 12.73 | .11 | 1.66 | 1.77 | (.12 | ) | (.96 | ) | |||||||
October 31, 2013 | 10.13 | .08 | 2.65 | 2.73 | (.10 | ) | (.03 | ) | |||||||
October 31, 2012(2) | 10.00 | .01 | .13 | .14 | (.01 | ) | — | ||||||||
Class C | |||||||||||||||
April 30, 2017* | 12.07 | —(f) | 1.52 | 1.52 | (.02 | ) | (.54 | ) | |||||||
October 31, 2016 | 12.56 | .04 | .15 | .19 | (.03 | ) | (.65 | ) | |||||||
October 31, 2015 | 13.39 | —(f) | .36 | .36 | (.01 | ) | (1.18 | ) | |||||||
October 31, 2014 | 12.71 | .02 | 1.65 | 1.67 | (.03 | ) | (.96 | ) | |||||||
October 31, 2013 | 10.12 | —(f) | 2.65 | 2.65 | (.03 | ) | (.03 | ) | |||||||
October 31, 2012(2) | 10.00 | —(f) | .13 | .13 | (.01 | ) | — | ||||||||
Class E | |||||||||||||||
April 30, 2017* | 12.12 | .06 | 1.51 | 1.57 | (.04 | ) | (.54 | ) | |||||||
October 31, 2016 | 12.61 | .13 | .15 | .28 | (.12 | ) | (.65 | ) | |||||||
October 31, 2015 | 13.44 | .10 | .35 | .45 | (.10 | ) | (1.18 | ) | |||||||
October 31, 2014 | 12.74 | .11 | 1.66 | 1.77 | (.11 | ) | (.96 | ) | |||||||
October 31, 2013 | 10.13 | .10 | 2.63 | 2.73 | (.09 | ) | (.03 | ) | |||||||
October 31, 2012(2) | 10.00 | .01 | .14 | .15 | (.02 | ) | — | ||||||||
Class S | |||||||||||||||
April 30, 2017* | 12.13 | .07 | 1.52 | 1.59 | (.08 | ) | (.54 | ) | |||||||
October 31, 2016 | 12.61 | .16 | .16 | .32 | (.15 | ) | (.65 | ) | |||||||
October 31, 2015 | 13.44 | .13 | .35 | .48 | (.13 | ) | (1.18 | ) | |||||||
October 31, 2014 | 12.74 | .14 | 1.67 | 1.81 | (.15 | ) | (.96 | ) | |||||||
October 31, 2013 | 10.13 | .13 | 2.63 | 2.76 | (.12 | ) | (.03 | ) | |||||||
October 31, 2012(2) | 10.00 | .02 | .13 | .15 | (.02 | ) | — | ||||||||
Class T | |||||||||||||||
April 30, 2017(10) | 13.10 | —(f) | .02 | .02 | (.03 | ) | — | ||||||||
See accompanying notes which are an integral part of the financial statements.
78 U.S. Strategic Equity Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e)(g) | Net Assets(d)(e) | Turnover Rate(b)(k) | |||||||||
(.60 | ) | 13.07 | 13.20 | 5,294 | 1.31 | 1.06 | .83 | 45 | |||||||||
(.77 | ) | 12.10 | 2.51 | 6,317 | 1.33 | 1.07 | 1.06 | 75 | |||||||||
(1.28 | ) | 12.59 | 3.42 | 6,700 | 1.32 | 1.05 | .78 | 102 | |||||||||
(1.08 | ) | 13.42 | 14.72 | 4,826 | 1.32 | 1.07 | .86 | 85 | |||||||||
(.13 | ) | 12.73 | 27.15 | 3,327 | 1.31 | 1.13 | .73 | 125 | |||||||||
(.01 | ) | 10.13 | 1.44 | 633 | 1.36 | 1.12 | .57 | 15 | |||||||||
(.56 | ) | 13.03 | 12.81 | 16,794 | 2.06 | 1.81 | .07 | 45 | |||||||||
(.68 | ) | 12.07 | 1.74 | 18,154 | 2.08 | 1.82 | .32 | 75 | |||||||||
(1.19 | ) | 12.56 | 2.66 | 22,288 | 2.07 | 1.80 | .03 | 102 | |||||||||
(.99 | ) | 13.39 | 13.86 | 16,787 | 2.07 | 1.82 | .12 | 85 | |||||||||
(.06 | ) | 12.71 | 26.27 | 9,948 | 2.07 | 1.88 | .03 | 125 | |||||||||
(.01 | ) | 10.12 | 1.28 | 3,479 | 2.12 | 1.87 | (.19 | ) | 15 | ||||||||
(.58 | ) | 13.11 | 13.23 | 2,416 | 1.31 | 1.06 | 1.00 | 45 | |||||||||
(.77 | ) | 12.12 | 2.51 | 74,419 | 1.33 | 1.07 | 1.08 | 75 | |||||||||
(1.28 | ) | 12.61 | 3.40 | 104,763 | 1.31 | 1.05 | .78 | 102 | |||||||||
(1.07 | ) | 13.44 | 14.76 | 97,618 | 1.32 | 1.07 | .90 | 85 | |||||||||
(.12 | ) | 12.74 | 27.19 | 90,808 | 1.31 | 1.13 | .86 | 125 | |||||||||
(.02 | ) | 10.13 | 1.46 | 69,066 | 1.37 | 1.12 | .41 | 15 | |||||||||
(.62 | ) | 13.10 | 13.33 | 2,907,579 | 1.06 | .81 | 1.07 | 45 | |||||||||
(.80 | ) | 12.13 | 2.85 | 2,742,942 | 1.08 | .82 | 1.33 | 75 | |||||||||
(1.31 | ) | 12.61 | 3.66 | 3,864,298 | 1.06 | .80 | 1.03 | 102 | |||||||||
(1.11 | ) | 13.44 | 15.05 | 3,566,048 | 1.07 | .82 | 1.13 | 85 | |||||||||
(.15 | ) | 12.74 | 27.51 | 2,975,527 | 1.06 | .88 | 1.10 | 125 | |||||||||
(.02 | ) | 10.13 | 1.46 | 2,072,403 | 1.11 | .87 | .96 | 15 | |||||||||
(.03 | ) | 13.09 | .15 | 5,369 | 1.07 | .71 | (.13 | ) | 45 |
See accompanying notes which are an integral part of the financial statements.
U.S. Strategic Equity Fund 79
Russell Investment Company
U.S. Strategic Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 1,211,595 |
Administration fees | 115,355 | |
Distribution fees | 11,538 | |
Shareholder servicing fees | 3,970 | |
Transfer agent fees | 430,034 | |
Trustee fees | 20,856 | |
$ | 1,793,348 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||
affiliated company are as follows: | ||||||||||||||||
Fair Value, | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||
U.S. Cash Management Fund | $ | 89,844 | $ | 627,118 | $ | 560,188 | $ | — | $ | (9) | $ | 156,765 | $ | 486 | $ | — |
$ | 89,844 | $ | 627,118 | $ | 560,188 | $ | — | $ | (9) | $ | 156,765 | $ | 486 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:
Cost of Investments | $ | 2,521,032,106 | |||
Unrealized Appreciation | $ | 502,666,814 | |||
Unrealized Depreciation | (52,048,549 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 450,618,265 |
See accompanying notes which are an integral part of the financial statements.
80 U.S. Strategic Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,122.80 | $ | 1,019.24 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 5.89 | $ | 5.61 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.12% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,119.30 | $ | 1,015.52 | |
Expenses Paid During Period* | $ | 9.83 | $ | 9.35 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.87% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class S | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,124.80 | $ | 1,020.48 | |
of other funds. | Expenses Paid During Period* | $ | 4.58 | $ | 4.36 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.87% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
U.S. Large Cap Equity Fund 81
Russell Investment Company
U.S. Large Cap Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 95.4% | Dr Pepper Snapple Group, Inc. | 2,700 | 247 | ||||
Consumer Discretionary - 12.0% | General Mills, Inc. | 615 | 35 | ||||
Amazon.com, Inc.(Æ) | 2,556 | 2,365 | Hormel Foods Corp. | 505 | 18 | ||
AMC Networks, Inc. Class A(Æ) | 1,200 | 72 | JM Smucker Co. (The) | 460 | 58 | ||
AutoZone, Inc.(Æ) | 370 | 256 | Kellogg Co. | 1,029 | 73 | ||
Avon Products, Inc.(Æ) | 2,900 | 14 | Kimberly-Clark Corp. | 720 | 93 | ||
Bed Bath & Beyond, Inc. | 1,900 | 74 | Kraft Heinz Co. (The) | 1,561 | 141 | ||
Brinker International, Inc. | 600 | 27 | Kroger Co. (The) | 25,411 | 753 | ||
Cable One, Inc. | 90 | 61 | Mondelez International, Inc. Class A | 40,103 | 1,807 | ||
Carnival Corp. | 2,200 | 136 | Monster Beverage Corp.(Æ) | 10,732 | 487 | ||
Chipotle Mexican Grill, Inc. Class A(Æ) | 1,971 | 935 | PepsiCo, Inc. | 10,482 | 1,188 | ||
Coach, Inc. | 7,921 | 312 | Philip Morris International, Inc. | 3,035 | 336 | ||
Comcast Corp. Class A | 57,166 | 2,241 | Procter & Gamble Co. (The) | 14,245 | 1,245 | ||
Costco Wholesale Corp. | 1,150 | 204 | Reynolds American, Inc. | 1,879 | 121 | ||
Dana Holding Corp. | 18,900 | 367 | Sysco Corp. | 3,383 | 179 | ||
Darden Restaurants, Inc. | 500 | 43 | United Natural Foods, Inc.(Æ) | 500 | 21 | ||
Dollar General Corp. | 780 | 57 | US Foods Holding Corp.(Æ) | 1,600 | 45 | ||
Domino's Pizza, Inc. | 610 | 111 | Walgreens Boots Alliance, Inc. | 2,355 | 204 | ||
Estee Lauder Cos., Inc. (The) Class A | 5,120 | 446 | Whole Foods Market, Inc. | 16,399 | 596 | ||
Ford Motor Co. | 35,904 | 411 | |||||
General Motors Co. | 12,308 | 427 | 10,342 | ||||
Home Depot, Inc. (The) | 7,702 | 1,202 | |||||
JC Penney Co., Inc.(Æ) | 53,584 | 288 | Energy - 7.7% | ||||
Anadarko Petroleum Corp. | 100 | 6 | |||||
Lennar Corp. Class A | 11,950 | 603 | Baker Hughes, Inc. | 10,600 | 629 | ||
Lowe's Cos., Inc. | 8,791 | 746 | Chevron Corp. | 23,943 | 2,555 | ||
McDonald's Corp. | 1,729 | 242 | Core Laboratories NV | 4,980 | 552 | ||
Nike, Inc. Class B | 15,493 | 859 | Energen Corp.(Æ) | 600 | 31 | ||
NVR, Inc.(Æ) | 49 | 103 | EOG Resources, Inc. | 12,810 | 1,185 | ||
O'Reilly Automotive, Inc.(Æ) | 1,775 | 440 | Exxon Mobil Corp. | 26,287 | 2,146 | ||
Priceline Group, Inc. (The)(Æ) | 374 | 691 | Halliburton Co. | 13,410 | 615 | ||
PVH Corp. | 600 | 61 | Nabors Industries, Ltd. | 20,014 | 207 | ||
Staples, Inc. | 4,300 | 42 | National Oilwell Varco, Inc. | 3,830 | 134 | ||
Starbucks Corp. | 29,313 | 1,761 | Newfield Exploration Co.(Æ) | 6,700 | 232 | ||
Target Corp. | 1,655 | 92 | Occidental Petroleum Corp. | 1,958 | 120 | ||
Tenneco, Inc. | 500 | 32 | Phillips 66 | 1,482 | 118 | ||
Time Warner, Inc. | 1,586 | 157 | Pioneer Natural Resources Co. | 920 | 159 | ||
TJX Cos., Inc. | 5,662 | 445 | Royal Dutch Shell PLC Class B - ADR | 18,311 | 991 | ||
Tractor Supply Co. | 2,600 | 161 | Schlumberger, Ltd. | 20,919 | 1,518 | ||
Twenty-First Century Fox, Inc. Class A | 1,029 | 31 | Southwestern Energy Co.(Æ) | 6,600 | 50 | ||
Twenty-First Century Fox, Inc. Class B | 2,549 | 76 | Transocean, Ltd.(Æ) | 3,600 | 40 | ||
Ulta Beauty, Inc.(Æ) | 300 | 84 | Valero Energy Corp. | 3,435 | 222 | ||
VF Corp. | 1,471 | 80 | |||||
Visteon Corp.(Æ) | 1,300 | 134 | 11,510 | ||||
Wal-Mart Stores, Inc. | 8,793 | 661 | |||||
Walt Disney Co. (The) | 3,416 | 395 | Financial Services - 20.3% | ||||
Whirlpool Corp. | 110 | 20 | Affiliated Managers Group, Inc. | 2,310 | 383 | ||
Aflac, Inc. | 745 | 56 | |||||
17,965 | Alliance Data Systems Corp. | 2,218 | 554 | ||||
Allstate Corp. (The) | 6,155 | 500 | |||||
Consumer Staples - 6.9% | American Express Co. | 1,211 | 96 | ||||
Altria Group, Inc. | 930 | 67 | American International Group, Inc. | 8,590 | 524 | ||
Archer-Daniels-Midland Co. | 8,476 | 388 | American Tower Corp.(ö) | 435 | 55 | ||
Brown-Forman Corp. Class B - ADR | 1,800 | 85 | Ameriprise Financial, Inc. | 720 | 92 | ||
Campbell Soup Co. | 10,209 | 587 | Aon PLC | 4,143 | 497 | ||
Coca-Cola Co. (The) | 2,466 | 106 | Aspen Insurance Holdings, Ltd. | 1,200 | 63 | ||
Colgate-Palmolive Co. | 5,318 | 383 | Assurant, Inc. | 1,000 | 96 | ||
Conagra Brands, Inc. | 9,750 | 378 | AvalonBay Communities, Inc.(ö) | 284 | 54 | ||
Constellation Brands, Inc. Class A | 525 | 91 | Bank of America Corp. | 8,176 | 191 | ||
CVS Health Corp. | 7,405 | 610 | Bank of New York Mellon Corp. (The) | 2,147 | 101 |
See accompanying notes which are an integral part of the financial statements.
82 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
BB&T Corp. | 2,172 | 94 | Zions Bancorporation | 13,550 | 542 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 3,359 | 555 | 30,555 | ||||
BlackRock, Inc. Class A | 2,433 | 936 | |||||
Camden Property Trust(ö) | 370 | 30 | Health Care - 12.2% | ||||
Capital One Financial Corp. | 10,620 | 854 | Abbott Laboratories | 19,715 | 860 | ||
Chubb, Ltd. | 6,254 | 859 | AbbVie, Inc. | 206 | 14 | ||
Citigroup, Inc. | 33,781 | 1,997 | Aetna, Inc. | 826 | 112 | ||
Citizens Financial Group, Inc. | 4,700 | 173 | Agilent Technologies, Inc. | 5,320 | 293 | ||
CME Group, Inc. Class A | 457 | 53 | Allergan PLC(Æ) | 331 | 81 | ||
Comerica, Inc. | 1,800 | 127 | Amgen, Inc. | 543 | 89 | ||
Crown Castle International Corp.(ö) | 8,685 | 821 | Anthem, Inc. | 4,282 | 762 | ||
Discover Financial Services | 5,388 | 337 | Baxter International, Inc. | 7,247 | 403 | ||
Dun & Bradstreet Corp. (The) | 190 | 21 | Becton Dickinson and Co. | 467 | 87 | ||
E*Trade Financial Corp.(Æ) | 4,000 | 138 | Biogen, Inc.(Æ) | 2,291 | 621 | ||
Equinix, Inc.(ö) | 1,590 | 664 | Cardinal Health, Inc. | 9,102 | 661 | ||
Equity Residential(ö) | 1,337 | 86 | Celgene Corp.(Æ) | 2,080 | 258 | ||
Everest Re Group, Ltd. | 40 | 10 | Centene Corp.(Æ) | 5,350 | 398 | ||
Federal Realty Investment Trust(ö) | 110 | 14 | Cerner Corp.(Æ) | 16,110 | 1,043 | ||
First Data Corp. Class A(Æ) | 9,850 | 154 | Cigna Corp. | 9,552 | 1,492 | ||
FleetCor Technologies, Inc.(Æ) | 4,665 | 658 | Edwards Lifesciences Corp.(Æ) | 1,520 | 167 | ||
Franklin Resources, Inc. | 1,994 | 86 | Eli Lilly & Co. | 4,370 | 359 | ||
GGP, Inc.(Æ) | 425 | 9 | Express Scripts Holding Co.(Æ) | 6,083 | 373 | ||
Goldman Sachs Group, Inc. (The) | 662 | 148 | Gilead Sciences, Inc. | 11,699 | 802 | ||
Hanover Insurance Group, Inc. (The) | 300 | 26 | Humana, Inc. | 187 | 42 | ||
Hartford Financial Services Group, Inc. | 14,950 | 723 | IDEXX Laboratories, Inc.(Æ) | 740 | 124 | ||
Intercontinental Exchange, Inc. | 17,042 | 1,026 | Intuitive Surgical, Inc.(Æ) | 105 | 88 | ||
Invesco, Ltd. | 3,750 | 124 | Johnson & Johnson | 10,753 | 1,327 | ||
Jones Lang LaSalle, Inc. | 3,450 | 396 | Masimo Corp.(Æ) | 1,000 | 103 | ||
JPMorgan Chase & Co. | 29,255 | 2,544 | McKesson Corp. | 1,677 | 232 | ||
Lincoln National Corp. | 1,500 | 99 | Medtronic PLC | 3,615 | 300 | ||
M&T Bank Corp. | 640 | 99 | Merck & Co., Inc. | 16,105 | 1,004 | ||
Marsh & McLennan Cos., Inc. | 337 | 25 | Novo Nordisk A/S - ADR | 16,850 | 652 | ||
MasterCard, Inc. Class A | 10,008 | 1,165 | Pfizer, Inc. | 30,219 | 1,025 | ||
MetLife, Inc. | 16,466 | 854 | Regeneron Pharmaceuticals, Inc.(Æ) | 1,586 | 617 | ||
Morgan Stanley | 3,622 | 157 | Stryker Corp. | 1,467 | 200 | ||
Northern Trust Corp. | 2,300 | 207 | Thermo Fisher Scientific, Inc. | 658 | 109 | ||
PNC Financial Services Group, Inc. (The) | 4,917 | 589 | UnitedHealth Group, Inc. | 11,883 | 2,078 | ||
Progressive Corp. (The) | 9,677 | 384 | Vertex Pharmaceuticals, Inc.(Æ) | 1,893 | 224 | ||
Prologis, Inc.(ö) | 340 | 18 | WellCare Health Plans, Inc.(Æ) | 360 | 55 | ||
Prudential Financial, Inc. | 2,798 | 299 | Zimmer Biomet Holdings, Inc. | 4,504 | 539 | ||
Public Storage(ö) | 2,679 | 561 | Zoetis, Inc. Class A | 11,732 | 658 | ||
Regency Centers Corp.(ö) | 5,724 | 362 | |||||
Reinsurance Group of America, Inc. Class A | 710 | 89 | 18,252 | ||||
SBA Communications Corp.(Æ)(ö) | 2,788 | 353 | |||||
Simon Property Group, Inc.(ö) | 2,106 | 348 | Materials and Processing - 3.3% | ||||
SL Green Realty Corp.(ö) | 228 | 24 | Dow Chemical Co. (The) | 14,792 | 929 | ||
State Street Corp. | 12,224 | 1,026 | Ecolab, Inc. | 5,986 | 774 | ||
SunTrust Banks, Inc. | 5,100 | 290 | EI du Pont de Nemours & Co. | 741 | 59 | ||
Synchrony Financial | 35,971 | 1,000 | Freeport-McMoRan, Inc.(Æ) | 22,150 | 282 | ||
Travelers Cos., Inc. (The) | 3,045 | 371 | Lennox International, Inc. | 340 | 56 | ||
US Bancorp | 22,760 | 1,167 | NewMarket Corp. | 160 | 75 | ||
Visa, Inc. Class A | 9,398 | 858 | PPG Industries, Inc. | 8,770 | 963 | ||
Voya Financial, Inc. | 6,900 | 258 | Praxair, Inc. | 3,892 | 486 | ||
Wells Fargo & Co. | 35,635 | 1,918 | Sealed Air Corp. | 6,500 | 286 | ||
Welltower, Inc.(ö) | 228 | 16 | Sherwin-Williams Co. (The) | 830 | 278 | ||
Willis Towers Watson PLC | 3,404 | 451 | Silgan Holdings, Inc. | 830 | 50 | ||
XL Group, Ltd. | 2,400 | 100 | Vulcan Materials Co. | 4,638 | 561 |
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 83
Russell Investment Company
U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
WestRock Co. | 2,700 | 145 | Xerox Corp. | 20,700 | 149 | ||
4,944 | 17,783 | ||||||
Producer Durables - 11.8% | Technology - 16.5 % | ||||||
3M Co. | 397 | 78 | Activision Blizzard, Inc. | 534 | 28 | ||
Accenture PLC Class A | 3,898 | 473 | Adobe Systems, Inc.(Æ) | 4,437 | 593 | ||
AGCO Corp. | 2,200 | 141 | Alphabet, Inc. Class A(Æ) | 1,002 | 926 | ||
Automatic Data Processing, Inc. | 6,264 | 655 | Alphabet, Inc. Class C(Æ) | 2,622 | 2,375 | ||
Babcock & Wilcox Co. (The) Class W(Æ) | 1,000 | 49 | Apple, Inc. | 12,528 | 1,800 | ||
Boeing Co. (The) | 1,960 | 362 | Aspen Technology, Inc.(Æ) | 1,100 | 68 | ||
Caterpillar, Inc. | 875 | 89 | Autodesk, Inc.(Æ) | 4,518 | 407 | ||
CSX Corp. | 764 | 39 | Avnet, Inc. | 5,600 | 217 | ||
Danaher Corp. | 7,947 | 662 | Cadence Design Systems, Inc.(Æ) | 2,100 | 68 | ||
Deere & Co. | 774 | 86 | Ciena Corp.(Æ) | 1,400 | 32 | ||
Delta Air Lines, Inc. | 2,240 | 102 | Cirrus Logic, Inc.(Æ) | 1,300 | 84 | ||
Eaton Corp. PLC | 12,867 | 974 | Cisco Systems, Inc. | 28,183 | 960 | ||
EMCOR Group, Inc. | 1,700 | 112 | Citrix Systems, Inc.(Æ) | 1,000 | 81 | ||
Emerson Electric Co. | 958 | 58 | Cognizant Technology Solutions Corp. Class | ||||
FedEx Corp. | 6,032 | 1,145 | A | 394 | 24 | ||
Fluor Corp. | 4,140 | 212 | Corning, Inc. | 21,601 | 624 | ||
Fortive Corp. | 6,197 | 392 | Cypress Semiconductor Corp. | 39,800 | 558 | ||
General Dynamics Corp. | 281 | 54 | Dell Technologies, Inc. Class V(Æ) | 240 | 16 | ||
General Electric Co. | 61,404 | 1,780 | DXC Technology Co.(Æ) | 160 | 12 | ||
Honeywell International, Inc. | 7,047 | 925 | Electronic Arts, Inc.(Æ) | 2,416 | 229 | ||
Hub Group, Inc. Class A(Æ) | 600 | 23 | F5 Networks, Inc.(Æ) | 790 | 102 | ||
Illinois Tool Works, Inc. | 869 | 120 | Facebook, Inc. Class A(Æ) | 11,634 | 1,748 | ||
Insperity, Inc. | 300 | 27 | FireEye, Inc.(Æ) | 1,000 | 13 | ||
Jacobs Engineering Group, Inc. | 1,100 | 60 | Gartner, Inc.(Æ) | 1,600 | 183 | ||
JB Hunt Transport Services, Inc. | 5,178 | 464 | Harris Corp. | 1,340 | 150 | ||
Johnson Controls International PLC | 10,492 | 436 | Hewlett Packard Enterprise Co. | 3,268 | 61 | ||
Kansas City Southern | 6,321 | 569 | HP, Inc. | 19,548 | 368 | ||
L3 Technologies, Inc. | 990 | 170 | Intel Corp. | 31,886 | 1,152 | ||
Landstar System, Inc. | 900 | 77 | International Business Machines Corp. | 571 | 92 | ||
Lockheed Martin Corp. | 345 | 93 | Intuit, Inc. | 5,025 | 629 | ||
ManpowerGroup, Inc. | 1,500 | 151 | Juniper Networks, Inc. | 9,200 | 277 | ||
Navistar International Corp.(Æ) | 400 | 11 | Micron Technology, Inc.(Æ) | 13,650 | 378 | ||
Norfolk Southern Corp. | 571 | 67 | Microsoft Corp. | 47,288 | 3,238 | ||
Northrop Grumman Corp. | 3,833 | 944 | NetApp, Inc. | 5,500 | 219 | ||
PACCAR, Inc. | 10,597 | 707 | ON Semiconductor Corp.(Æ) | 14,312 | 203 | ||
Pentair PLC | 5,100 | 329 | Oracle Corp. | 26,973 | 1,212 | ||
Quanta Services, Inc.(Æ) | 4,100 | 145 | QUALCOMM, Inc. | 7,167 | 385 | ||
Raytheon Co. | 284 | 44 | Red Hat, Inc.(Æ) | 13,203 | 1,163 | ||
Robert Half International, Inc. | 2,300 | 106 | Salesforce.com, Inc.(Æ) | 8,921 | 768 | ||
Rockwell Automation, Inc. | 1,550 | 244 | SAP SE - ADR | 5,932 | 594 | ||
Southwest Airlines Co. | 1,724 | 97 | Seagate Technology PLC | 2,700 | 114 | ||
Terex Corp. | 13,500 | 472 | ServiceNow, Inc.(Æ) | 300 | 28 | ||
Textron, Inc. | 20,850 | 973 | Synaptics, Inc.(Æ) | 800 | 44 | ||
TransDigm Group, Inc. | 1,523 | 376 | Synopsys, Inc.(Æ) | 1,200 | 88 | ||
Union Pacific Corp. | 8,993 | 1,007 | Tableau Software, Inc. Class A(Æ) | 2,000 | 107 | ||
United Parcel Service, Inc. Class B | 318 | 34 | TE Connectivity, Ltd. | 249 | 19 | ||
United Technologies Corp. | 7,793 | 927 | Tech Data Corp.(Æ) | 1,100 | 105 | ||
Verisk Analytics, Inc. Class A(Æ) | 4,119 | 341 | Texas Instruments, Inc. | 16,842 | 1,334 | ||
Waste Management, Inc. | 1,349 | 98 | Twitter, Inc.(Æ) | 1,300 | 21 | ||
WESCO International, Inc.(Æ) | 1,000 | 61 | Viavi Solutions, Inc. Class W(Æ) | 4,200 | 42 | ||
WW Grainger, Inc. | 380 | 73 | VMware, Inc. Class A(Æ) | 100 | 9 | ||
Western Digital Corp. | 7,800 | 695 |
See accompanying notes which are an integral part of the financial statements.
84 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||
Principal | Fair | ||||
Amount ($) or | Value | ||||
Shares | $ | ||||
Zynga, Inc. Class A(Æ) | 40,600 | 117 | |||
24,760 | |||||
Utilities - 4.7% | |||||
AES Corp. | 35,650 | 403 | |||
American Electric Power Co., Inc. | 5,800 | 394 | |||
American Water Works Co., Inc. | 500 | 40 | |||
AT&T, Inc. | 37,309 | 1,478 | |||
Consolidated Edison, Inc. | 703 | 55 | |||
Dominion Resources, Inc. | 1,455 | 113 | |||
Duke Energy Corp. | 7,094 | 585 | |||
Edison International | 8,649 | 692 | |||
Eversource Energy | 1,100 | 65 | |||
Exelon Corp. | 4,012 | 139 | |||
NextEra Energy, Inc. | 6,078 | 812 | |||
NiSource, Inc. | 6,500 | 158 | |||
PG&E Corp. | 1,398 | 94 | |||
Pinnacle West Capital Corp. | 1,500 | 128 | |||
PPL Corp. | 1,211 | 46 | |||
Public Service Enterprise Group, Inc. | 655 | 29 | |||
Sempra Energy | 438 | 50 | |||
Southern Co. (The) | 3,219 | 160 | |||
US Cellular Corp.(Æ) | 500 | 20 | |||
Verizon Communications, Inc. | 33,356 | 1,530 | |||
Xcel Energy, Inc. | 2,270 | 102 | |||
7,093 | |||||
Total Common Stocks | |||||
(cost $113,719) | 143,204 | ||||
Short-Term Investments - 4.4% | |||||
U.S. Cash Management Fund | 6,616,246 | (8) | 6,618 | ||
Total Short-Term Investments | |||||
(cost $6,617) | 6,618 | ||||
Total Investments 99.8% | |||||
(identified cost $120,336) | 149,822 | ||||
Other Assets and Liabilities, Net | |||||
- 0.2% | 225 | ||||
Net Assets - 100.0% | 150,047 |
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 85
Russell Investment Company
U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||||||||||
Amounts in thousands (except contract amounts) | |||||||||||||||
Unrealized | |||||||||||||||
Appreciation | |||||||||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||||||||
Contracts | Amount | Date | $ | ||||||||||||
Long Positions | |||||||||||||||
S&P 500 E-Mini Index Futures | 26 | USD | 3,095 | 06/17 | 28 | ||||||||||
S&P Consumer Discretionary Select Sector Index Futures | 4 | USD | 363 | 06/17 | 13 | ||||||||||
S&P Consumer Staples Select Sector Index Futures | 7 | USD | 387 | 06/17 | 3 | ||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 44 | ||||||||||||||
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||
Common Stocks | |||||||||||||||
Consumer Discretionary | $ | 17,965 | $ | — | $ | — | $ | — | $ | 17,965 | 12.0 | ||||
Consumer Staples | 10,342 | — | — | — | 10,342 | 6.9 | |||||||||
Energy | 11,510 | — | — | — | 11,510 | 7.7 | |||||||||
Financial Services | 30,555 | — | — | — | 30,555 | 20.3 | |||||||||
Health Care | 18,252 | — | — | — | 18,252 | 12.2 | |||||||||
Materials and Processing | 4,944 | — | — | — | 4,944 | 3.3 | |||||||||
Producer Durables | 17,783 | — | — | — | 17,783 | 11.8 | |||||||||
Technology | 24,760 | — | — | — | 24,760 | 16.5 | |||||||||
Utilities | 7,093 | — | — | — | 7,093 | 4.7 | |||||||||
Short-Term Investments | — | — | — | 6,618 | 6,618 | 4.4 | |||||||||
Total Investments | 143,204 | — | — | 6,618 | 149,822 | 99.8 | |||||||||
Other Assets and Liabilities, Net | 0.2 | ||||||||||||||
100.0 | |||||||||||||||
Other Financial Instruments | |||||||||||||||
Assets | |||||||||||||||
Futures Contracts | 44 | — | — | — | 44 | —* | |||||||||
Total Other Financial Instruments** | $ | 44 | $ | — | $ | — | $ | — | $ | 44 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
86 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 44 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 2,368 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 290 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 87Russell Investment Company
U.S. Large Cap Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 11 | $ | — | $ | 11 | ||
Total Financial and Derivative Liabilities | 11 | — | 11 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (11 | ) | — | (11 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — $ | $ | — | $ | — |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
88 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 120,336 |
Investments, at fair value(>) | 149,822 | |
Cash (restricted)(a) | 319 | |
Receivables: | ||
Dividends and interest | 130 | |
Dividends from affiliated funds | 7 | |
Investments sold | 1,418 | |
Fund shares sold | 197 | |
Prepaid expenses | 4 | |
Total assets | 151,897 | |
Liabilities | ||
Payables: | ||
Investments purchased | 1,285 | |
Fund shares redeemed | 348 | |
Accrued fees to affiliates | 88 | |
Other accrued expenses | 118 | |
Variation margin on futures contracts | 11 | |
Total liabilities | 1,850 | |
Net Assets | $ | 150,047 |
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 89
Russell Investment Company
U.S. Large Cap Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Net Assets Consist of: | ||
Undistributed (overdistributed) net investment income | $ | 90 |
Accumulated net realized gain (loss) | 51,123 | |
Unrealized appreciation (depreciation) on: | ||
Investments | 29,486 | |
Futures contracts | 44 | |
Shares of beneficial interest | 113 | |
Additional paid-in capital | 69,191 | |
Net Assets | $ | 150,047 |
Net Asset Value, offering and redemption price per share: | ||
Net asset value per share: Class A(#) | $ | 13.27 |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 14.08 |
Class A — Net assets | $ | 11,442,326 |
Class A — Shares outstanding ($.01 par value) | 861,977 | |
Net asset value per share: Class C(#) | $ | 13.22 |
Class C — Net assets | $ | 1,660,773 |
Class C — Shares outstanding ($.01 par value) | 125,616 | |
Net asset value per share: Class S(#) | $ | 13.32 |
Class S — Net assets | $ | 136,944,336 |
Class S — Shares outstanding ($.01 par value) | 10,278,410 | |
Amounts in thousands | ||
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 6,618 |
(a) Cash Collateral for Futures | $ | 319 |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
90 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 3,034 | |
Dividends from affiliated funds | 57 | ||
Total investment income | 3,091 | ||
Expenses | |||
Advisory fees | 1,091 | ||
Administrative fees | 75 | ||
Custodian fees | 75 | ||
Distribution fees - Class A | 14 | ||
Distribution fees - Class C | 6 | ||
Transfer agent fees - Class A | 11 | ||
Transfer agent fees - Class C | 2 | ||
Transfer agent fees - Class S | 299 | ||
Professional fees | 29 | ||
Registration fees | 26 | ||
Shareholder servicing fees - Class C | 2 | ||
Trustees’ fees | 6 | ||
Printing fees | 13 | ||
Miscellaneous | 6 | ||
Expenses before reductions | 1,655 | ||
Expense reductions | (278 | ) | |
Net expenses | 1,377 | ||
Net investment income (loss) | 1,714 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 52,376 | ||
Futures contracts | 2,368 | ||
Net realized gain (loss) | 54,744 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | (14,962 | ) | |
Futures contracts | 290 | ||
Net change in unrealized appreciation (depreciation) | (14,672 | ) | |
Net realized and unrealized gain (loss) | 40,072 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 41,786 |
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 91
Russell Investment Company
U.S. Large Cap Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 1,714 | $ | 4,397 | ||
Net realized gain (loss) | 54,744 | 14,174 | ||||
Net change in unrealized appreciation (depreciation) | (14,672 | ) | (8,486 | ) | ||
Net increase (decrease) in net assets from operations | 41,786 | 10,085 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (86 | ) | (81 | ) | ||
Class C | (7 | ) | (3 | ) | ||
Class S | (1,937 | ) | (4,077 | ) | ||
From net realized gain | ||||||
Class A | (398 | ) | (735 | ) | ||
Class C | (57 | ) | (129 | ) | ||
Class S | (13,338 | ) | (31,697 | ) | ||
Net decrease in net assets from distributions | (15,823 | ) | (36,722 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (234,281 | ) | (28,010 | ) | ||
Total Net Increase (Decrease) in Net Assets | (208,318 | ) | (54,647 | ) | ||
Net Assets | ||||||
Beginning of period | 358,365 | 413,012 | ||||
End of period | $ | 150,047 | $ | 358,365 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 90 | $ | 406 |
See accompanying notes which are an integral part of the financial statements.
92 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Large Cap Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 99 | $ | 1,278 | 241 | $ | 2,955 | ||||||
Proceeds from reinvestment of distributions | 38 | 485 | 69 | 816 | ||||||||
Payments for shares redeemed | (72 | ) | (932 | ) | (210 | ) | (2,568 | ) | ||||
Net increase (decrease) | 65 | 831 | 100 | 1,203 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 26 | 330 | 89 | 1,054 | ||||||||
Proceeds from reinvestment of distributions | 5 | 64 | 11 | 131 | ||||||||
Payments for shares redeemed | (20 | ) | (256 | ) | (94 | ) | (1,138 | ) | ||||
Net increase (decrease) | 11 | 138 | 6 | 47 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 1,342 | 17,367 | 4,014 | 48,729 | ||||||||
Proceeds from reinvestment of distributions | 1,197 | 15,274 | 3,016 | 35,764 | ||||||||
Payments for shares redeemed | (20,243 | ) | (267,891 | ) | (9,345 | ) | (113,753 | ) | ||||
Net increase (decrease) | (17,704 | ) | (235,250 | ) | (2,315 | ) | (29,260 | ) | ||||
Total increase (decrease) | (17,628 | ) | $ | (234,281 | ) | (2,209 | ) | $ | (28,010 | ) |
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 93
Russell Investment Company
U.S. Large Cap Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 12.37 | .05 | 1.44 | 1.49 | (.10 | ) | (.49 | ) | |||||||||
October 31, 2016 | 13.25 | .11 | .20 | .31 | (.11 | ) | (1.08 | ) | |||||||||
October 31, 2015 | 13.99 | .09 | .52 | .61 | (.09 | ) | (1.26 | ) | |||||||||
October 31, 2014 | 13.27 | .12 | 1.63 | 1.75 | (.13 | ) | (.90 | ) | |||||||||
October 31, 2013 | 10.52 | .06 | 2.85 | 2.91 | (.11 | ) | (.05 | ) | |||||||||
October 31, 2012(1) | 10.00 | .05 | .53 | .58 | (.06 | ) | — | ||||||||||
Class C | |||||||||||||||||
April 30, 2017* | 12.32 | —(f) | 1.45 | 1.45 | (.06 | ) | (.49 | ) | |||||||||
October 31, 2016 | 13.20 | .02 | .20 | .22 | (.02 | ) | (1.08 | ) | |||||||||
October 31, 2015 | 13.96 | (.01 | ) | .51 | .50 | — (f) | (1.26 | ) | |||||||||
October 31, 2014 | 13.25 | .02 | 1.63 | 1.65 | (.04 | ) | (.90 | ) | |||||||||
October 31, 2013 | 10.51 | —(f) | 2.82 | 2.82 | (.03 | ) | (.05 | ) | |||||||||
October 31, 2012(1) | 10.00 | —(f) | .52 | .52 | (.01 | ) | — | ||||||||||
Class S | |||||||||||||||||
April 30, 2017* | 12.40 | .07 | 1.45 | 1.52 | (.11 | ) | (.49 | ) | |||||||||
October 31, 2016 | 13.28 | .15 | .19 | .34 | (.14 | ) | (1.08 | ) | |||||||||
October 31, 2015 | 14.02 | .13 | .51 | .64 | (.12 | ) | (1.26 | ) | |||||||||
October 31, 2014 | 13.29 | .16 | 1.63 | 1.79 | (.16 | ) | (.90 | ) | |||||||||
October 31, 2013 | 10.52 | .13 | 2.82 | 2.95 | (.13 | ) | (.05 | ) | |||||||||
October 31, 2012(1) | 10.00 | .07 | .52 | .59 | (.07 | ) | — | ||||||||||
See accompanying notes which are an integral part of the financial statements.
94 U.S. Large Cap Equity Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | |||||||||
(.59 | ) | 13.27 | 12.28 | 11,442 | 1.32 | 1.12 | .75 | 46 | |||||||||
(1.19 | ) | 12.37 | 2.84 | 9,855 | 1.28 | 1.12 | .94 | 92 | |||||||||
(1.35 | ) | 13.25 | 4.47 | 9,233 | 1.26 | 1.12 | .69 | 84 | |||||||||
(1.03 | ) | 13.99 | 13.85 | 7,166 | 1.26 | 1.12 | .93 | 81 | |||||||||
(.16 | ) | 13.27 | 27.93 | 4,509 | 1.28 | 1.12 | .48 | 84 | |||||||||
(.06 | ) | 10.52 | 5.76 | 1,037 | 1.28 | 1.11 | .64 | 55 | |||||||||
(.55 | ) | 13.22 | 11.93 | 1,661 | 2.07 | 1.87 | .01 | 46 | |||||||||
(1.10 | ) | 12.32 | 2.09 | 1,415 | 2.03 | 1.87 | .19 | 92 | |||||||||
(1.26 | ) | 13.20 | 3.61 | 1,432 | 2.01 | 1.87 | (.06 | ) | 84 | ||||||||
(.94 | ) | 13.96 | 13.06 | 1,394 | 2.01 | 1.87 | .18 | 81 | |||||||||
(.08 | ) | 13.25 | 26.99 | 838 | 2.03 | 1.87 | .02 | 84 | |||||||||
(.01 | ) | 10.51 | 5.17 | 367 | 2.11 | 1.86 | (.01 | ) | 55 | ||||||||
(.60 | ) | 13.32 | 12.48 | 136,944 | 1.05 | .87 | 1.12 | 46 | |||||||||
(1.22 | ) | 12.40 | 3.07 | 347,095 | 1.03 | .87 | 1.19 | 92 | |||||||||
(1.38 | ) | 13.28 | 4.70 | 402,347 | 1.01 | .87 | .95 | 84 | |||||||||
(1.06 | ) | 14.02 | 14.17 | 426,012 | 1.01 | .87 | 1.20 | 81 | |||||||||
(.18 | ) | 13.29 | 28.35 | 343,541 | 1.03 | .87 | 1.06 | 84 | |||||||||
(.07 | ) | 10.52 | 5.85 | 240,454 | 1.11 | .86 | .96 | 55 |
See accompanying notes which are an integral part of the financial statements.
U.S. Large Cap Equity Fund 95
Russell Investment Company
U.S. Large Cap Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 51,861 |
Administration fees | 6,003 | |
Distribution fees | 3,349 | |
Shareholder servicing fees | 336 | |
Transfer agent fees | 24,824 | |
Trustee fees | 1,551 | |
$ | 87,924 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||||
affiliated company are as follows: | |||||||||||||||||||
Fair Value, | Change in | ||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||||
U.S. Cash Management Fund | $ | 19,449 | $ | 65,672 | $ | 78,503 | $ | 3 | $ | (3 | ) | $ | 6,618 | $ | 57 | $ | — | ||
$ | 19,449 | $ | 65,672 | $ | 78,503 | $ | 3 | $ | (3 | ) | $ | 6,618 | $ | 57 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation)for income tax purposes were as follows:
Cost of Investments | $ | 122,115,333 | |||
Unrealized Appreciation | $ | 28,844,012 | |||
Unrealized Depreciation | (1,137,335 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 27,706,677 |
See accompanying notes which are an integral part of the financial statements.
96 U.S. Large Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,145.30 | $ | 1,018.74 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 6.49 | $ | 6.11 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.22% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,140.80 | $ | 1,015.03 | |
Expenses Paid During Period* | $ | 10.46 | $ | 9.84 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.97% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class S | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,146.20 | $ | 1,019.98 | |
of other funds. | Expenses Paid During Period* | $ | 5.16 | $ | 4.86 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.97% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
U.S. Mid Cap Equity Fund 97
Russell Investment Company
U.S. Mid Cap Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 93.6% | Thor Industries, Inc. | 2,396 | 230 | ||||
Consumer Discretionary - 11.5% | Time, Inc. | 6,100 | 93 | ||||
Aaron's, Inc. Class A | 11,600 | 417 | Toll Brothers, Inc. | 6,923 | 249 | ||
Advance Auto Parts, Inc. | 1,835 | 261 | Tractor Supply Co. | 3,600 | 223 | ||
AMC Entertainment Holdings, Inc. Class A | 10,027 | 304 | Ulta Beauty, Inc.(Æ) | 1,032 | 290 | ||
Aramark | 7,106 | 260 | Vail Resorts, Inc. | 2,372 | 469 | ||
AutoZone, Inc.(Æ) | 600 | 415 | Viacom, Inc. Class B | 1,236 | 53 | ||
Avon Products, Inc.(Æ) | 31,100 | 151 | Visteon Corp.(Æ) | 2,000 | 206 | ||
Bed Bath & Beyond, Inc. | 5,700 | 221 | Whirlpool Corp. | 2,897 | 538 | ||
Brinker International, Inc. | 4,600 | 203 | Williams-Sonoma, Inc. | 8,500 | 459 | ||
Brunswick Corp. | 1,098 | 62 | Wyndham Worldwide Corp. | 876 | 83 | ||
Cable One, Inc. | 120 | 82 | |||||
Churchill Downs, Inc. | 1,904 | 318 | 18,197 | ||||
Coach, Inc. | 14,200 | 559 | |||||
Coty, Inc. Class A | 9,380 | 167 | Consumer Staples - 4.7% | ||||
Archer-Daniels-Midland Co. | 5,900 | 270 | |||||
Dick's Sporting Goods, Inc. | 1,500 | 76 | Blue Buffalo Pet Products, Inc.(Æ) | 9,745 | 240 | ||
Dollar Tree, Inc.(Æ) | 847 | 70 | Brown-Forman Corp. Class A - ADR | 5,144 | 247 | ||
Domino's Pizza, Inc. | 510 | 93 | Brown-Forman Corp. Class B - ADR | 12,428 | 588 | ||
DR Horton, Inc. | 8,007 | 263 | Bunge, Ltd. | 8,721 | 689 | ||
Expedia, Inc. | 4,497 | 601 | Campbell Soup Co. | 4,600 | 265 | ||
Extended Stay America, Inc. | 11,532 | 201 | Casey's General Stores, Inc. | 2,140 | 240 | ||
Foot Locker, Inc. | 2,606 | 202 | Clorox Co. (The) | 2,107 | 282 | ||
Garmin, Ltd. | 4,869 | 248 | Dr Pepper Snapple Group, Inc. | 15,353 | 1,406 | ||
Gentex Corp. | 11,921 | 246 | Hain Celestial Group, Inc. (The)(Æ) | 2,600 | 96 | ||
Genuine Parts Co. | 5,566 | 512 | Hershey Co. (The) | 5,401 | 585 | ||
Hasbro, Inc. | 2,805 | 278 | Hormel Foods Corp. | 10,200 | 358 | ||
Hilton Worldwide Holdings, Inc. | 3,100 | 183 | JM Smucker Co. (The) | 2,670 | 338 | ||
Interpublic Group of Cos., Inc. (The) | 3,081 | 73 | Mead Johnson Nutrition Co. Class A | 1,170 | 104 | ||
Jack in the Box, Inc. | 1,600 | 163 | Molson Coors Brewing Co. Class B | 10,466 | 1,004 | ||
John Wiley & Sons, Inc. Class A | 5,310 | 280 | Post Holdings, Inc.(Æ) | 233 | 20 | ||
Lear Corp. | 1,443 | 206 | Spectrum Brands Holdings, Inc. | 1,536 | 221 | ||
Leggett & Platt, Inc. | 4,149 | 218 | Tyson Foods, Inc. Class A | 1,078 | 69 | ||
Lennar Corp. Class A | 4,941 | 250 | United Natural Foods, Inc.(Æ) | 5,423 | 225 | ||
Liberty Broadband Corp. Class C(Æ) | 2,613 | 238 | US Foods Holding Corp.(Æ) | 5,800 | 164 | ||
Live Nation Entertainment, Inc.(Æ) | 12,213 | 393 | |||||
LKQ Corp.(Æ) | 15,584 | 487 | 7,411 | ||||
MGM Resorts International | 16,712 | 513 | |||||
Michael Kors Holdings, Ltd.(Æ) | 1,532 | 57 | Energy - 5.7% | ||||
Mobileye NV(Æ) | 6,842 | 424 | Antero Resources Corp.(Æ) | 12,400 | 263 | ||
Mohawk Industries, Inc.(Æ) | 1,222 | 287 | Cabot Oil & Gas Corp. | 30,400 | 706 | ||
Newell Rubbermaid, Inc. | 5,698 | 272 | Cimarex Energy Co. | 1,350 | 158 | ||
Norwegian Cruise Line Holdings, Ltd.(Æ) | 4,400 | 237 | Concho Resources, Inc.(Æ) | 1,804 | 228 | ||
NVR, Inc.(Æ) | 242 | 511 | Core Laboratories NV | 4,600 | 510 | ||
Omnicom Group, Inc. | 3,448 | 283 | Devon Energy Corp. | 15,200 | 600 | ||
O'Reilly Automotive, Inc.(Æ) | 537 | 133 | Diamond Offshore Drilling, Inc.(Æ) | 14,000 | 202 | ||
Outfront Media, Inc.(ö) | 5,300 | 139 | Energen Corp.(Æ) | 7,000 | 364 | ||
Pool Corp. | 108 | 13 | Ensco PLC Class A | 71,500 | 564 | ||
PVH Corp. | 7,175 | 725 | EQT Corp. | 4,500 | 262 | ||
Ralph Lauren Corp. Class A | 14,700 | 1,187 | HollyFrontier Corp. | 5,400 | 152 | ||
Ross Stores, Inc. | 4,884 | 317 | Marathon Oil Corp. | 20,300 | 302 | ||
Royal Caribbean Cruises, Ltd. | 500 | 53 | Marathon Petroleum Corp. | 16,400 | 835 | ||
Scripps Networks Interactive, Inc. Class A | 3,253 | 243 | National Oilwell Varco, Inc. | 10,100 | 353 | ||
Service Corp. International | 839 | 27 | Newfield Exploration Co.(Æ) | 5,800 | 201 | ||
Signet Jewelers, Ltd. | 2,507 | 165 | Noble Corp. PLC | 35,700 | 171 | ||
Sirius XM Holdings, Inc. | 78,903 | 391 | Noble Energy, Inc. | 29,900 | 967 | ||
Six Flags Entertainment Corp. | 2,911 | 182 | ONEOK, Inc. | 4,991 | 263 | ||
Tenneco, Inc. | 3,256 | 205 | Patterson-UTI Energy, Inc. | 24,300 | 526 | ||
Texas Roadhouse, Inc. Class A | 5,100 | 239 | Range Resources Corp. | 6,029 | 160 | ||
Targa Resources Corp. | 4,270 | 235 |
See accompanying notes which are an integral part of the financial statements.
98 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Williams Cos., Inc. (The) | 23,700 | 726 | Fiserv, Inc.(Æ) | 3,780 | 450 | ||
World Fuel Services Corp. | 6,300 | 232 | GGP, Inc.(Æ) | 4,400 | 95 | ||
WPX Energy, Inc.(Æ) | 5,605 | 67 | Hanover Insurance Group, Inc. (The) | 7,100 | 627 | ||
9,047 | Hartford Financial Services Group, Inc. | 20,000 | 967 | ||||
HCP, Inc.(ö) | 12,789 | 401 | |||||
Financial Services - 24.4% | Healthcare Trust of America, Inc. Class A(ö) | 2,146 | 68 | ||||
Affiliated Managers Group, Inc. | 3,400 | 563 | Highwoods Properties, Inc.(ö) | 1,456 | 74 | ||
Alexandria Real Estate Equities, Inc.(ö) | 754 | 85 | Host Hotels & Resorts, Inc.(ö) | 5,767 | 104 | ||
Alleghany Corp.(Æ) | 580 | 354 | Iron Mountain, Inc.(ö) | 2,517 | 87 | ||
Alliance Data Systems Corp. | 1,327 | 331 | Jones Lang LaSalle, Inc. | 2,450 | 281 | ||
Ally Financial, Inc. | 14,400 | 285 | KeyCorp | 36,300 | 662 | ||
American Campus Communities, Inc.(ö) | 12,522 | 594 | Kilroy Realty Corp.(ö) | 1,116 | 79 | ||
American Equity Investment Life Holding | Kimco Realty Corp.(ö) | 3,723 | 76 | ||||
Co. | 4,500 | 107 | Lazard, Ltd. Class A | 13,700 | 588 | ||
American Financial Group, Inc. | 600 | 58 | Liberty Property Trust(ö) | 1,936 | 79 | ||
American Homes 4 Rent Class A(ö) | 2,956 | 68 | Life Storage, Inc.(Æ) | 9,200 | 721 | ||
AmTrust Financial Services, Inc. | 14,057 | 226 | M&T Bank Corp. | 2,920 | 454 | ||
Apple Hospitality REIT, Inc.(ö) | 3,394 | 64 | Macerich Co. (The)(ö) | 5,136 | 320 | ||
Arch Capital Group, Ltd.(Æ) | 3,300 | 320 | Markel Corp.(Æ) | 170 | 165 | ||
Aspen Insurance Holdings, Ltd. | 8,500 | 445 | MarketAxess Holdings, Inc. | 228 | 44 | ||
Assurant, Inc. | 4,900 | 472 | MB Financial, Inc. | 17,200 | 731 | ||
Assured Guaranty, Ltd. | 9,306 | 354 | Medical Properties Trust, Inc.(ö) | 41,800 | 546 | ||
AvalonBay Communities, Inc.(ö) | 2,694 | 512 | Mid-America Apartment Communities, Inc. | ||||
Axis Capital Holdings, Ltd. | 4,100 | 270 | (ö) | 2,684 | 267 | ||
Bank of Hawaii Corp. | 2,700 | 220 | National Retail Properties, Inc.(ö) | 14,180 | 599 | ||
BankUnited, Inc. | 20,000 | 706 | Paramount Group, Inc.(ö) | 3,100 | 51 | ||
Boston Properties, Inc.(ö) | 3,354 | 425 | Popular, Inc. | 6,900 | 289 | ||
Brixmor Property Group, Inc.(ö) | 13,200 | 261 | Progressive Corp. (The) | 23,400 | 929 | ||
Brown & Brown, Inc. | 5,800 | 249 | Prologis, Inc.(ö) | 9,466 | 515 | ||
Camden Property Trust(ö) | 5,000 | 412 | Prudential Financial, Inc. | 660 | 71 | ||
CBOE Holdings, Inc. | 294 | 24 | Raymond James Financial, Inc. | 5,987 | 446 | ||
CBRE Group, Inc. Class A(Æ) | 4,171 | 149 | Realty Income Corp.(ö) | 1,722 | 100 | ||
CIT Group, Inc. | 16,100 | 745 | Regency Centers Corp.(ö) | 1,390 | 88 | ||
Citizens Financial Group, Inc. | 23,200 | 852 | Reinsurance Group of America, Inc. Class A | 2,320 | 290 | ||
Columbia Property Trust, Inc.(ö) | 12,900 | 290 | Retail Opportunity Investments Corp.(ö) | 27,800 | 573 | ||
Comerica, Inc. | 5,100 | 361 | Retail Properties of America, Inc. Class A(ö) | 16,500 | 220 | ||
Commerce Bancshares, Inc. | 3,600 | 198 | Santander Consumer USA Holdings, Inc.(Æ) | 4,700 | 60 | ||
CoreCivic, Inc.(Æ) | 6,400 | 220 | SBA Communications Corp.(Æ)(ö) | 6,869 | 868 | ||
Cousins Properties, Inc.(ö) | 68,200 | 579 | Signature Bank(Æ) | 3,797 | 526 | ||
CyrusOne, Inc.(ö) | 13,000 | 710 | SL Green Realty Corp.(ö) | 4,208 | 442 | ||
DCT Industrial Trust, Inc.(ö) | 1,427 | 72 | Sun Communities, Inc.(ö) | 920 | 77 | ||
DDR Corp.(ö) | 28,496 | 308 | SunTrust Banks, Inc. | 8,900 | 506 | ||
Digital Realty Trust, Inc.(ö) | 1,086 | 125 | Synchrony Financial | 47,200 | 1,312 | ||
Douglas Emmett, Inc.(ö) | 492 | 19 | Synovus Financial Corp. | 8,900 | 372 | ||
Duke Realty Corp.(ö) | 3,214 | 89 | Taubman Centers, Inc.(ö) | 10,390 | 650 | ||
Dun & Bradstreet Corp. (The) | 330 | 36 | TCF Financial Corp. | 12,600 | 208 | ||
E*Trade Financial Corp.(Æ) | 9,900 | 342 | UDR, Inc.(ö) | 1,226 | 46 | ||
East West Bancorp, Inc. | 5,900 | 320 | Validus Holdings, Ltd. | 2,500 | 138 | ||
EPR Properties(ö) | 947 | 69 | Vantiv, Inc. Class A(Æ) | 5,188 | 322 | ||
Equifax, Inc. | 3,031 | 410 | Ventas, Inc.(ö) | 2,070 | 133 | ||
Equinix, Inc.(ö) | 262 | 109 | VEREIT, Inc.(ö) | 10,003 | 84 | ||
Equity LifeStyle Properties, Inc. Class A(ö) | 946 | 77 | Vornado Realty Trust(ö) | 4,800 | 462 | ||
Essex Property Trust, Inc.(ö) | 1,030 | 252 | Voya Financial, Inc. | 14,010 | 524 | ||
Everest Re Group, Ltd. | 2,910 | 732 | Weingarten Realty Investors(ö) | 7,716 | 253 | ||
Fair Isaac Corp. | 4,000 | 542 | Welltower, Inc.(ö) | 2,078 | 148 | ||
Federal Realty Investment Trust(ö) | 2,670 | 349 | Western Union Co. (The) | 2,026 | 40 | ||
First Horizon National Corp. | 15,400 | 283 | WEX, Inc.(Æ) | 1,531 | 155 | ||
Weyerhaeuser Co.(ö) | 27,162 | 919 |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 99
Russell Investment Company
U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
White Mountains Insurance Group, Ltd. | 450 | 387 | Materials and Processing - 6.1% | ||||
Willis Towers Watson PLC | 8,228 | 1,091 | Acuity Brands, Inc. | 3,600 | 634 | ||
WP Carey, Inc.(ö) | 1,235 | 77 | Air Products & Chemicals, Inc. | 5,600 | 787 | ||
XL Group, Ltd. | 20,600 | 862 | Albemarle Corp. | 2,628 | 286 | ||
Zions Bancorporation | 8,300 | 332 | AptarGroup, Inc. | 3,400 | 273 | ||
38,694 | Beacon Roofing Supply, Inc.(Æ) | 4,682 | 232 | ||||
Bemis Co., Inc. | 4,900 | 220 | |||||
Health Care - 9.0% | Eagle Materials, Inc. | 1,621 | 156 | ||||
Abiomed, Inc.(Æ) | 144 | 19 | Eastman Chemical Co. | 2,800 | 223 | ||
Acadia Pharmaceuticals, Inc.(Æ) | 353 | 12 | FMC Corp. | 1,500 | 110 | ||
Alexion Pharmaceuticals, Inc.(Æ) | 3,257 | 416 | Hexcel Corp. | 4,600 | 238 | ||
Allscripts Healthcare Solutions, Inc.(Æ) | 14,700 | 176 | International Flavors & Fragrances, Inc. | 2,460 | 341 | ||
AmerisourceBergen Corp. Class A | 9,744 | 800 | International Paper Co. | 11,200 | 604 | ||
Anthem, Inc. | 720 | 128 | Lennox International, Inc. | 2,514 | 416 | ||
BioMarin Pharmaceutical, Inc.(Æ) | 4,227 | 405 | Martin Marietta Materials, Inc. | 4,340 | 956 | ||
Bruker Corp. | 3,800 | 93 | Masonite International Corp.(Æ) | 2,838 | 236 | ||
Cardinal Health, Inc. | 4,600 | 334 | NewMarket Corp. | 1,030 | 485 | ||
Centene Corp.(Æ) | 10,690 | 796 | Newmont Mining Corp. | 6,093 | 206 | ||
Cigna Corp. | 6,490 | 1,015 | Nucor Corp. | 4,960 | 304 | ||
Cooper Cos., Inc. (The) | 1,200 | 240 | Owens Corning | 5,070 | 309 | ||
DaVita HealthCare Partners, Inc.(Æ) | 3,855 | 266 | Reliance Steel & Aluminum Co. | 2,988 | 235 | ||
Dentsply Sirona, Inc. | 6,690 | 423 | RPM International, Inc. | 11,300 | 594 | ||
Edwards Lifesciences Corp.(Æ) | 866 | 95 | Sherwin-Williams Co. (The) | 2,100 | 703 | ||
Envision Healthcare Corp.(Æ) | 3,642 | 204 | Silgan Holdings, Inc. | 3,800 | 230 | ||
Exact Sciences Corp.(Æ) | 19,041 | 571 | Valvoline, Inc. | 31,900 | 710 | ||
Express Scripts Holding Co.(Æ) | 2,000 | 123 | WestRock Co. | 4,879 | 261 | ||
Henry Schein, Inc.(Æ) | 2,280 | 396 | 9,749 | ||||
Humana, Inc. | 4,300 | 955 | |||||
IDEXX Laboratories, Inc.(Æ) | 1,686 | 283 | Producer Durables - 13.2% | ||||
Incyte Corp.(Æ) | 1,065 | 132 | AGCO Corp. | 7,200 | 461 | ||
Intuitive Surgical, Inc.(Æ) | 173 | 145 | Alaska Air Group, Inc. | 5,800 | 494 | ||
Laboratory Corp. of America Holdings(Æ) | 639 | 90 | Allegion PLC | 3,185 | 250 | ||
Mallinckrodt PLC(Æ) | 6,100 | 286 | Allison Transmission Holdings, Inc. Class A | 20,394 | 789 | ||
Medicines Co. (The)(Æ) | 11,640 | 574 | American Airlines Group, Inc. | 6,795 | 290 | ||
NuVasive, Inc.(Æ) | 3,827 | 277 | Ametek, Inc. | 14,084 | 805 | ||
OPKO Health, Inc.(Æ) | 1,187 | 9 | AO Smith Corp. | 18,169 | 979 | ||
Pacira Pharmaceuticals, Inc.(Æ) | 7,663 | 372 | Avery Dennison Corp. | 3,400 | 283 | ||
Patterson Cos., Inc. | 5,400 | 240 | Booz Allen Hamilton Holding Corp. Class A | 4,594 | 165 | ||
PerkinElmer, Inc. | 6,096 | 362 | BWX Technologies, Inc. Class W(Æ) | 5,000 | 246 | ||
Qiagen NV(Æ) | 4,021 | 121 | Carlisle Cos., Inc. | 2,333 | 237 | ||
Quest Diagnostics, Inc. | 800 | 84 | CH Robinson Worldwide, Inc. | 1,616 | 117 | ||
Quintiles Transnational Holdings, Inc.(Æ) | 3,146 | 265 | CoStar Group, Inc.(Æ) | 1,204 | 290 | ||
Sarepta Therapeutics, Inc.(Æ) | 3,621 | 131 | Crane Co. | 5,316 | 424 | ||
Seattle Genetics, Inc.(Æ) | 1,155 | 79 | Delphi Automotive PLC | 496 | 40 | ||
Steris PLC | 11,100 | 819 | Donaldson Co., Inc. | 5,300 | 245 | ||
Teleflex, Inc. | 1,660 | 343 | Dycom Industries, Inc.(Æ) | 4,676 | 494 | ||
United Therapeutics Corp.(Æ) | 553 | 70 | EMCOR Group, Inc. | 2,300 | 151 | ||
Varian Medical Systems, Inc.(Æ) | 1,100 | 100 | Expeditors International of Washington, Inc. | 6,517 | 366 | ||
VCA, Inc.(Æ) | 283 | 26 | Fluor Corp. | 7,490 | 384 | ||
Veeva Systems, Inc. Class A(Æ) | 5,009 | 269 | Genpact, Ltd. | 11,371 | 278 | ||
Vertex Pharmaceuticals, Inc.(Æ) | 3,096 | 366 | HD Supply Holdings, Inc.(Æ) | 1,986 | 80 | ||
WellCare Health Plans, Inc.(Æ) | 1,340 | 206 | Hub Group, Inc. Class A(Æ) | 1,400 | 55 | ||
Wright Medical Group NV(Æ) | 10,923 | 332 | Hubbell, Inc. Class B | 4,300 | 486 | ||
Zimmer Biomet Holdings, Inc. | 4,900 | 586 | Jacobs Engineering Group, Inc. | 6,400 | 351 | ||
Zoetis, Inc. Class A | 6,058 | 340 | JB Hunt Transport Services, Inc. | 5,967 | 535 | ||
14,374 | Korn/Ferry International | 8,712 | 282 | ||||
L3 Technologies, Inc. | 2,620 | 450 |
See accompanying notes which are an integral part of the financial statements.
100 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Landstar System, Inc. | 2,400 | 205 | F5 Networks, Inc.(Æ) | 2,666 | 344 | ||
LSC Communications, Inc. | 700 | 18 | Finisar Corp.(Æ) | 2,700 | 62 | ||
Macquarie Infrastructure Corp. | 9,400 | 765 | FireEye, Inc.(Æ) | 4,400 | 55 | ||
ManpowerGroup, Inc. | 5,800 | 586 | Gartner, Inc.(Æ) | 4,745 | 542 | ||
MAXIMUS, Inc. | 5,259 | 321 | GoDaddy, Inc. Class A(Æ) | 8,611 | 335 | ||
Mettler-Toledo International, Inc.(Æ) | 586 | 301 | Harris Corp. | 6,200 | 694 | ||
MSC Industrial Direct Co., Inc. Class A | 2,236 | 200 | Hewlett Packard Enterprise Co. | 1,800 | 34 | ||
Navistar International Corp.(Æ) | 3,200 | 86 | HP, Inc. | 4,200 | 79 | ||
Old Dominion Freight Line, Inc. | 2,018 | 179 | IAC/InterActiveCorp(Æ) | 1,900 | 158 | ||
On Assignment, Inc.(Æ) | 6,905 | 357 | Infinera Corp.(Æ) | 26,884 | 267 | ||
Orbital ATK, Inc. | 2,824 | 280 | Insight Enterprises, Inc.(Æ) | 2,000 | 84 | ||
Oshkosh Corp. | 3,120 | 216 | InterXion Holding NV(Æ) | 14,357 | 598 | ||
Paychex, Inc. | 4,916 | 291 | Intuit, Inc. | 870 | 109 | ||
Pentair PLC | 7,500 | 484 | Jabil Circuit, Inc. | 9,800 | 284 | ||
Quanta Services, Inc.(Æ) | 7,500 | 266 | Juniper Networks, Inc. | 19,400 | 583 | ||
Republic Services, Inc. Class A | 728 | 46 | KLA-Tencor Corp. | 598 | 59 | ||
Robert Half International, Inc. | 3,920 | 181 | Liberty Interactive Corp.(Æ) | 1,905 | 103 | ||
Rockwell Automation, Inc. | 2,500 | 393 | LogMeIn, Inc. | 6,244 | 706 | ||
Rockwell Collins, Inc. | 9,086 | 946 | Marvell Technology Group, Ltd. | 23,400 | 351 | ||
RR Donnelley & Sons Co. | 2,600 | 33 | Micron Technology, Inc.(Æ) | 12,455 | 345 | ||
Ryder System, Inc. | 3,000 | 204 | Motorola Solutions, Inc. | 6,000 | 516 | ||
Snap-on, Inc. | 2,278 | 382 | NetApp, Inc. | 10,200 | 406 | ||
Stanley Black & Decker, Inc. | 2,304 | 314 | Nuance Communications, Inc.(Æ) | 10,400 | 186 | ||
Terex Corp. | 9,600 | 336 | NVIDIA Corp. | 4,239 | 442 | ||
Textron, Inc. | 10,400 | 485 | Sabre Corp. | 34,519 | 808 | ||
Toro Co. (The) | 4,185 | 272 | Skyworks Solutions, Inc. | 5,684 | 567 | ||
Trimble Navigation, Ltd.(Æ) | 9,842 | 349 | Synaptics, Inc.(Æ) | 2,200 | 120 | ||
United Continental Holdings, Inc.(Æ) | 1,307 | 92 | Synchronoss Technologies, Inc.(Æ) | 32,838 | 525 | ||
United Rentals, Inc.(Æ) | 1,205 | 132 | Synopsys, Inc.(Æ) | 4,898 | 361 | ||
Verisk Analytics, Inc. Class A(Æ) | 907 | 75 | Tech Data Corp.(Æ) | 4,600 | 440 | ||
WageWorks, Inc.(Æ) | 4,382 | 323 | Twitter, Inc.(Æ) | 10,500 | 173 | ||
Waters Corp.(Æ) | 2,130 | 362 | Tyler Technologies, Inc.(Æ) | 433 | 71 | ||
WESCO International, Inc.(Æ) | 4,200 | 256 | VeriFone Systems, Inc.(Æ) | 2,200 | 41 | ||
Xerox Corp. | 38,400 | 276 | Viavi Solutions, Inc. Class W(Æ) | 54,900 | 549 | ||
XPO Logistics, Inc.(Æ) | 5,667 | 280 | Western Digital Corp. | 9,000 | 801 | ||
Xylem, Inc. | 13,600 | 699 | Zynga, Inc. Class A(Æ) | 122,800 | 355 | ||
21,018 | 17,494 | ||||||
Technology - 11.0% | Utilities - 8.0% | ||||||
Amphenol Corp. Class A | 2,806 | 203 | Ameren Corp. | 5,000 | 273 | ||
Analog Devices, Inc. | 10,600 | 807 | American Water Works Co., Inc. | 15,700 | 1,253 | ||
Ansys, Inc.(Æ) | 804 | 89 | Aqua America, Inc. | 7,800 | 258 | ||
Arista Networks, Inc.(Æ) | 1,905 | 266 | Atmos Energy Corp. | 3,400 | 275 | ||
ARRIS International PLC(Æ) | 10,190 | 265 | Avangrid, Inc. | 1,730 | 75 | ||
Arrow Electronics, Inc.(Æ) | 5,500 | 388 | CenturyLink, Inc. | 22,591 | 580 | ||
Avnet, Inc. | 12,900 | 499 | CMS Energy Corp. | 26,000 | 1,181 | ||
Black Knight Financial Services, Inc. Class | Consolidated Edison, Inc. | 3,700 | 293 | ||||
A(Æ) | 6,673 | 276 | DTE Energy Co. | 6,400 | 670 | ||
Brocade Communications Systems, Inc. | 9,171 | 115 | Edison International | 12,000 | 960 | ||
CA, Inc. | 2,006 | 66 | Entergy Corp. | 3,100 | 236 | ||
Cadence Design Systems, Inc.(Æ) | 16,865 | 549 | Eversource Energy | 6,300 | 374 | ||
CDK Global, Inc. | 796 | 52 | FirstEnergy Corp. | 13,400 | 401 | ||
Citrix Systems, Inc.(Æ) | 3,210 | 260 | Great Plains Energy, Inc. | 23,300 | 690 | ||
Cognex Corp. | 3,171 | 271 | Hawaiian Electric Industries, Inc. | 15,100 | 506 | ||
Coherent, Inc.(Æ) | 504 | 109 | Level 3 Communications, Inc.(Æ) | 1,142 | 69 | ||
Cypress Semiconductor Corp. | 55,700 | 779 | NiSource, Inc. | 23,300 | 565 | ||
Electronic Arts, Inc.(Æ) | 3,657 | 347 | PG&E Corp. | 7,000 | 469 |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 101
Russell Investment Company
U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||||
Principal | Fair | ||||||
Amount ($) or | Value | ||||||
Shares | $ | ||||||
Pinnacle West Capital Corp. | 5,800 | 494 | |||||
Public Service Enterprise Group, Inc. | 12,700 | 559 | |||||
SCANA Corp. | 7,900 | 523 | |||||
Sempra Energy | 6,250 | 707 | |||||
Sprint Corp.(Æ) | 30,346 | 274 | |||||
US Cellular Corp.(Æ) | 5,200 | 204 | |||||
Xcel Energy, Inc. | 8,200 | 369 | |||||
Zayo Group Holdings, Inc.(Æ) | 13,736 | 482 | |||||
12,740 | |||||||
Total Common Stocks | |||||||
(cost $132,467) | 148,724 | ||||||
Short-Term Investments - 6.5% | |||||||
U.S. Cash Management Fund | 10,257,287 | (8) | 10,259 | ||||
Total Short-Term Investments | |||||||
(cost $10,259) | 10,259 | ||||||
Other Securities - 3.5% | |||||||
U.S. Cash Collateral Fund(×) | 5,561,798 | (8) | 5,562 | ||||
Total Other Securities | |||||||
(cost $5,562) | 5,562 | ||||||
Total Investments 103.6% | |||||||
(identified cost $148,288) | 164,545 | ||||||
Other Assets and Liabilities, Net | |||||||
- | (3.6%) | (5,720 | ) | ||||
Net Assets - 100.0% | 158,825 |
See accompanying notes which are an integral part of the financial statements.
102 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | ||||||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | |||||||||||||
Contracts | Amount | Date | $ | |||||||||||||
Long Positions | ||||||||||||||||
S&P Mid 400 E-Mini Index Futures | 40 | USD | 6,920 | 06/17 | 158 | |||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 158 | |||||||||||||||
Presentation of Portfolio Holdings | �� | |||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 18,197 | $ | — | $ | — | $ | — | $ | 18,197 | 11.5 | |||||
Consumer Staples | 7,411 | — | — | — | 7,411 | 4.7 | ||||||||||
Energy | 9,047 | — | — | — | 9,047 | 5.7 | ||||||||||
Financial Services | 38,694 | — | — | — | 38,694 | 24.4 | ||||||||||
Health Care | 14,374 | — | — | — | 14,374 | 9.0 | ||||||||||
Materials and Processing | 9,749 | — | — | — | 9,749 | 6.1 | ||||||||||
Producer Durables | 21,018 | — | — | — | 21,018 | 13.2 | ||||||||||
Technology | 17,494 | — | — | — | 17,494 | 11.0 | ||||||||||
Utilities | 12,740 | — | — | — | 12,740 | 8.0 | ||||||||||
Short-Term Investments | — | — | — | 10,259 | 10,259 | 6.5 | ||||||||||
Other Securities | — | — | — | 5,562 | 5,562 | 3.5 | ||||||||||
Total Investments | 148,724 | — | — | 15,821 | 164,545 | 103.6 | ||||||||||
Other Assets and Liabilities, Net | (3.6 | ) | ||||||||||||||
100.0 | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 158 | — | — | — | 158 | 0.1 | ||||||||||
Total Other Financial Instruments* | $ | 158 | $ | — | $ | — | $ | — | $ | 158 |
* Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 103
Russell Investment Company
U.S. Mid Cap Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 158 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 1,052 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 272 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
104 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||
Gross | Net Amounts | |||||||
Amounts | of Assets | |||||||
Gross | Offset in the | Presented in | ||||||
Amounts of | Statement of | the Statement | ||||||
Recognized | Assets and | of Assets and | ||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||
Securities on Loan* | Investments, at fair value | $ | 5,420 | $ | — | $ | 5,420 | |
Total Financial and Derivative Assets | 5,420 | — | 5,420 | |||||
Financial and Derivative Assets not subject to a netting agreement | — | — | — | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 5,420 | $ | — | $ | 5,420 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Assets | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||
Barclays | $ | 603 | $ | — | $ | 603 | $ | — | ||
Citigroup | 1,995 | — | 1,995 | — | ||||||
Goldman Sachs | 870 | — | 870 | — | ||||||
HSBC | 246 | — | 246 | — | ||||||
Merrill Lynch | 1,467 | — | 1,467 | — | ||||||
Societe Generale | 239 | — | 239 | — | ||||||
Total | $ | 5,420 | $ | — | $ | 5,420 | $ | — |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 105
Russell Investment Company
U.S. Mid Cap Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 77 | $ | — | $ | 77 | ||
Total Financial and Derivative Liabilities | 77 | — | 77 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (77 | ) | — | (77 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — | $ | — |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
106 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 148,288 |
Investments, at fair value(*)(>) | 164,545 | |
Cash | 19 | |
Cash (restricted)(a) | 542 | |
Receivables: | ||
Dividends and interest | 58 | |
Dividends from affiliated funds | 8 | |
Investments sold | 1,748 | |
Fund shares sold | 293 | |
Prepaid expenses | 2 | |
Total assets | 167,215 | |
Liabilities | ||
Payables: | ||
Investments purchased | 2,428 | |
Fund shares redeemed | 95 | |
Accrued fees to affiliates | 107 | |
Other accrued expenses | 121 | |
Variation margin on futures contracts | 77 | |
Payable upon return of securities loaned | 5,562 | |
Total liabilities | 8,390 | |
Net Assets | $ | 158,825 |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 107
Russell Investment Company
U.S. Mid Cap Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (147 | ) |
Accumulated net realized gain (loss) | 9,124 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 16,257 | ||
Futures contracts | 158 | ||
Shares of beneficial interest | 132 | ||
Additional paid-in capital | 133,301 | ||
Net Assets | $ | 158,825 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 12.03 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 12.76 | |
Class A — Net assets | $ | 5,534,507 | |
Class A — Shares outstanding ($.01 par value) | 460,105 | ||
Net asset value per share: Class C(#) | $ | 11.71 | |
Class C — Net assets | $ | 3,071,711 | |
Class C — Shares outstanding ($.01 par value) | 262,300 | ||
Net asset value per share: Class S(#) | $ | 12.07 | |
Class S — Net assets | $ | 150,218,878 | |
Class S — Shares outstanding ($.01 par value) | 12,445,262 | ||
Amounts in thousands | |||
(*) Securities on loan included in investments | $ | 5,420 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 15,821 | |
(a) Cash Collateral for Futures | $ | 542 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
108 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 1,056 | |
Dividends from affiliated funds | 36 | ||
Securities lending income (net) | 5 | ||
Securities lending income from affiliated funds (net) | 13 | ||
Total investment income | 1,110 | ||
Expenses | |||
Advisory fees | 628 | ||
Administrative fees | 38 | ||
Custodian fees | 72 | ||
Distribution fees - Class A | 7 | ||
Distribution fees - Class C | 11 | ||
Transfer agent fees - Class A | 5 | ||
Transfer agent fees - Class C | 3 | ||
Transfer agent fees - Class S | 149 | ||
Professional fees | 30 | ||
Registration fees | 24 | ||
Shareholder servicing fees - Class C | 4 | ||
Trustees’ fees | 3 | ||
Printing fees | 13 | ||
Miscellaneous | 7 | ||
Expenses before reductions | 994 | ||
Expense reductions | (211 | ) | |
Net expenses | 783 | ||
Net investment income (loss) | 327 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 9,695 | ||
Futures contracts | 1,052 | ||
Net realized gain (loss) | 10,747 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 9,965 | ||
Futures contracts | 272 | ||
Net change in unrealized appreciation (depreciation) | 10,237 | ||
Net realized and unrealized gain (loss) | 20,984 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 21,311 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 109
Russell Investment Company
U.S. Mid Cap Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 327 | $ | 1,577 | ||
Net realized gain (loss) | 10,747 | 5,527 | ||||
Net change in unrealized appreciation (depreciation) | 10,237 | (1,495 | ) | |||
Net increase (decrease) in net assets from operations | 21,311 | 5,609 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (14 | ) | (38 | ) | ||
Class C | (2 | ) | (2 | ) | ||
Class S | (559 | ) | (1,600 | ) | ||
From net realized gain | ||||||
Class A | (204 | ) | (721 | ) | ||
Class C | (113 | ) | (398 | ) | ||
Class S | (5,599 | ) | (25,227 | ) | ||
Net decrease in net assets from distributions | (6,491 | ) | (27,986 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (4,625 | ) | (32,858 | ) | ||
Total Net Increase (Decrease) in Net Assets | 10,195 | (55,235 | ) | |||
Net Assets | ||||||
Beginning of period | 148,630 | 203,865 | ||||
End of period | $ | 158,825 | $ | 148,630 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (147 | ) | $ | 101 |
See accompanying notes which are an integral part of the financial statements.
110 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Mid Cap Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 51 | $ | 593 | 117 | $ | 1,293 | ||||||
Proceeds from reinvestment of distributions | 19 | 218 | 73 | 750 | ||||||||
Payments for shares redeemed | (63 | ) | (738 | ) | (159 | ) | (1,701 | ) | ||||
Net increase (decrease) | 7 | 73 | 31 | 342 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 28 | 326 | 80 | 822 | ||||||||
Proceeds from reinvestment of distributions | 10 | 114 | 39 | 398 | ||||||||
Payments for shares redeemed | (37 | ) | (425 | ) | (94 | ) | (976 | ) | ||||
Net increase (decrease) | 1 | 15 | 25 | 244 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 921 | 10,868 | 2,707 | 28,727 | ||||||||
Proceeds from reinvestment of distributions | 534 | 6,158 | 2,238 | 23,128 | ||||||||
Payments for shares redeemed | (1,842 | ) | (21,739 | ) | (7,769 | ) | (85,299 | ) | ||||
Net increase (decrease) | (387 | ) | (4,713 | ) | (2,824 | ) | (33,444 | ) | ||||
Total increase (decrease) | (379 | ) | $ | (4,625 | ) | (2,768 | ) | $ | (32,858 | ) |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 111
Russell Investment Company
U.S. Mid Cap Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||||||
Class A | ||||||||||||||||||||
April 30, 2017* | 10.94 | .01 | 1.56 | 1.57 | (.03 | ) | (.45 | ) | ||||||||||||
October 31, 2016 | 12.47 | .07 | .18 | .25 | (.09 | ) | (1.69 | ) | ||||||||||||
October 31, 2015 | 13.27 | .03 | .29 | .32 | (.04 | ) | (1.08 | ) | ||||||||||||
October 31, 2014 | 13.26 | .01 | 1.46 | 1.47 | (.03 | ) | (1.43 | ) | ||||||||||||
October 31, 2013 | 9.89 | .01 | 3.40 | 3.41 | (.04 | ) | — | |||||||||||||
October 31, 2012(1) | 10.00 | — (f) | (.08 | ) | (.08 | ) | (.03 | ) | — | |||||||||||
Class C | ||||||||||||||||||||
April 30, 2017* | 10.68 | (.03 | ) | 1.51 | 1.48 | —(f) | (.45 | ) | ||||||||||||
October 31, 2016 | 12.22 | (.01 | ) | .17 | .16 | (.01 | ) | (1.69 | ) | |||||||||||
October 31, 2015 | 13.08 | (.06 | ) | .28 | .22 | — | (1.08 | ) | ||||||||||||
October 31, 2014 | 13.16 | (.09 | ) | 1.44 | 1.35 | — | (1.43 | ) | ||||||||||||
October 31, 2013 | 9.86 | (.07 | ) | 3.39 | 3.32 | (.02 | ) | — | ||||||||||||
October 31, 2012(1) | 10.00 | (.05 | ) | (.09 | ) | (.14 | ) | —(f) | — | |||||||||||
Class S | ||||||||||||||||||||
April 30, 2017* | 10.98 | .03 | 1.55 | 1.58 | (.04 | ) | (.45 | ) | ||||||||||||
October 31, 2016 | 12.50 | .10 | .18 | .28 | (.11 | ) | (1.69 | ) | ||||||||||||
October 31, 2015 | 13.30 | .07 | .28 | .35 | (.07 | ) | (1.08 | ) | ||||||||||||
October 31, 2014 | 13.29 | .04 | 1.45 | 1.49 | (.05 | ) | (1.43 | ) | ||||||||||||
October 31, 2013 | 9.90 | .06 | 3.39 | 3.45 | (.06 | ) | — | |||||||||||||
October 31, 2012(1) | 10.00 | .03 | (.10 | ) | (.07 | ) | (.03 | ) | — | |||||||||||
See accompanying notes which are an integral part of the financial statements.
112 U.S. Mid Cap Equity Fund
% | % | % | |||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | |||||||||||
(.48 | ) | 12.03 | 14.53 | 5,535 | 1.49 | 1.22 | .19 | 52 | |||||||||||
(1.78 | ) | 10.94 | 2.94 | 4,956 | 1.47 | 1.22 | .68 | 127 | |||||||||||
(1.12 | ) | 12.47 | 2.29 | 5,259 | 1.40 | 1.22 | .26 | 120 | |||||||||||
(1.46 | ) | 13.27 | 12.05 | 4,560 | 1.42 | 1.22 | .07 | 96 | |||||||||||
(.04 | ) | 13.26 | 34.59 | 2,896 | 1.44 | 1.22 | .11 | 122 | |||||||||||
(.03 | ) | 9.89 | (.85 | ) | 897 | 1.44 | 1.21 | .06 | 96 | ||||||||||
(.45 | ) | 11.71 | 14.08 | 3,072 | 2.24 | 1.97 | (.56 | ) | 52 | ||||||||||
(1.70 | ) | 10.68 | 2.19 | 2,790 | 2.22 | 1.97 | (.08 | ) | 127 | ||||||||||
(1.08 | ) | 12.22 | 1.52 | 2,882 | 2.15 | 1.97 | (.49 | ) | 120 | ||||||||||
(1.43 | ) | 13.08 | 11.18 | 1,968 | 2.17 | 1.97 | (.70 | ) | 96 | ||||||||||
(.02 | ) | 13.16 | 33.67 | 672 | 2.19 | 1.97 | (.63 | ) | 122 | ||||||||||
— (f) | 9.86 | (1.36 | ) | 197 | 2.24 | 1.96 | (.64 | ) | 96 | ||||||||||
(.49 | ) | 12.07 | 14.62 | 150,218 | 1.24 | .97 | .44 | 52 | |||||||||||
(1.80 | ) | 10.98 | 3.26 | 140,884 | 1.22 | .97 | .92 | 127 | |||||||||||
(1.15 | ) | 12.50 | 2.53 | 195,724 | 1.15 | .97 | .51 | 120 | |||||||||||
(1.48 | ) | 13.30 | 12.28 | 197,354 | 1.17 | .97 | .33 | 96 | |||||||||||
(.06 | ) | 13.29 | 34.87 | 163,367 | 1.19 | .97 | .47 | 122 | |||||||||||
(.03 | ) | 9.90 | (.66 | ) | 121,714 | 1.25 | .96 | .40 | 96 |
See accompanying notes which are an integral part of the financial statements.
U.S. Mid Cap Equity Fund 113
Russell Investment Company
U.S. Mid Cap Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 70,229 |
Administration fees | 6,280 | |
Distribution fees | 3,004 | |
Shareholder servicing fees | 623 | |
Transfer agent fees | 26,022 | |
Trustee fees | 929 | |
$ | 107,087 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Collateral Fund | $ | 3,633 | $ | 18,930 | $ | 17,001 | $ | — | $ | — | $ | 5,562 | $ | 13 | $ | — | ||
U.S. Cash Management Fund | 5,629 | 34,849 | 30,220 | 1 | — | 10,259 | 36 | — | ||||||||||
$ | 9,262 | $ | 53,779 | $ | 47,221 | $ | 1 | $ | — | $ | 15,821 | $ | 49 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 149,650,269 | |||
Unrealized Appreciation | $ | 18,360,270 | |||
Unrealized Depreciation | (3,465,711 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 14,894,559 |
See accompanying notes which are an integral part of the financial statements.
114 U.S. Mid Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,173.20 | $ | 1,018.60 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 6.74 | $ | 6.26 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,169.00 | $ | 1,014.88 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 10.76 | $ | 9.99 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 2.00% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,173.20 | $ | 1,018.60 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 6.74 | $ | 6.26 | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 1.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
U.S. Small Cap Equity Fund 115
Russell Investment Company
U.S. Small Cap Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class I | Performance | expenses) | Class T | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 1,175.20 | $ | 1,020.18 | April 30, 2017 | $ | 1,007.20 | $ | 1,020.53 | |||
Expenses Paid During Period* | $ | 5.02 | $ | 4.66 | Expenses Paid During Period* | $ | 1.06 | $ | 4.31 | |||
* Expenses are equal to the Fund's annualized expense ratio of 0.93% | * Expenses are equal to the Fund's annualized expense ratio of 0.86% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the 45-day period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 45/365 (to reflect the period since | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | commencement of operations). May reflect amounts waived and/or reimbursed. | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | Without any waivers and/or reimbursements, expenses would have been higher. | |||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
Hypothetical | 0.86% (representing the six-month period annualized), multiplied by the | |||||||||||
Performance (5% | average account value over the period, multiplied by 181/365 (to reflect the | |||||||||||
Actual | return before | on-half year period). | ||||||||||
Class R6 | Performance | expenses) | ||||||||||
Beginning Account Value | Hypothetical | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | Performance (5% | |||||||
Ending Account Value | Actual | return before | ||||||||||
April 30, 2017 | $ | 1,175.90 | $ | 1,020.68 | Class Y | Performance | expenses) | |||||
Expenses Paid During Period* | $ | 4.48 | $ | 4.16 | Beginning Account Value | |||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.83% | Ending Account Value | |||||||||||
(representing the six month period annualized), multiplied by the average | April 30, 2017 | $ | 1,176.10 | $ | 1,020.83 | |||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | Expenses Paid During Period* | $ | 4.32 | $ | 4.01 | |||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. | * Expenses are equal to the Fund's annualized expense ratio of 0.80% | |||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
Hypothetical | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
Performance (5% | year period). | |||||||||||
Actual | return before | |||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | �� | |||||||||||
April 30, 2017 | $ | 1,174.80 | $ | 1,019.89 | ||||||||
Expenses Paid During Period* | $ | 5.34 | $ | 4.96 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.99% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. |
116 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 93.7% | First Cash Financial Services, Inc. | 33,437 | 1,737 | ||||
Consumer Discretionary - 11.9% | Five Below, Inc.(Æ) | 9,086 | 446 | ||||
2U, Inc.(Æ)(Ñ) | 72,741 | 3,302 | Flexsteel Industries, Inc. | 3,813 | 203 | ||
Aaron's, Inc. Class A | 49,964 | 1,795 | Fortress Transportation & Infrastructure | ||||
Acushnet Holdings Corp.(Ñ) | 122,445 | 2,236 | Investors LLC | 134,449 | 2,023 | ||
AH Belo Corp. Class A | 90,023 | 563 | Foundation Building Materials, Inc.(Æ) | 87,389 | 1,415 | ||
AMC Entertainment Holdings, Inc. Class A | 126,293 | 3,826 | Fox Factory Holding Corp.(Æ) | 60,273 | 1,811 | ||
American Eagle Outfitters, Inc. | 30,523 | 430 | Full House Resorts, Inc.(Æ) | 461,215 | 1,112 | ||
Avon Products, Inc.(Æ) | 50,214 | 244 | Gannett Co., Inc. | 19,700 | 165 | ||
Beazer Homes USA, Inc.(Æ) | 31,103 | 386 | Genesco, Inc.(Æ) | 20,590 | 1,097 | ||
Big 5 Sporting Goods Corp.(Ñ) | 23,700 | 365 | G-III Apparel Group, Ltd.(Æ) | 38,090 | 903 | ||
Biglari Holdings, Inc.(Æ) | 1,249 | 533 | GoPro, Inc. Class A(Æ)(Ñ) | 28,151 | 232 | ||
Black Diamond, Inc.(Æ) | 44,100 | 232 | Grand Canyon Education, Inc.(Æ) | 53,844 | 4,046 | ||
Bob Evans Farms, Inc. | 1,940 | 129 | Gray Television, Inc.(Æ) | 94,501 | 1,384 | ||
Bojangles', Inc.(Æ)(Ñ) | 48,029 | 1,054 | Group 1 Automotive, Inc. | 9,800 | 676 | ||
Bridgepoint Education, Inc.(Æ) | 11,300 | 138 | Hibbett Sports, Inc.(Æ)(Ñ) | 42,567 | 1,107 | ||
Buckle, Inc. (The)(Ñ) | 18,167 | 340 | Hilton Grand Vacations, Inc.(Æ) | 6,490 | 217 | ||
Buffalo Wild Wings, Inc.(Æ) | 4,118 | 649 | Horizon Global Corp.(Æ) | 222,807 | 3,140 | ||
Build-A-Bear Workshop, Inc. Class A(Æ) | 9,200 | 96 | HSN, Inc. | 167,770 | 6,191 | ||
Cable One, Inc. | 300 | 205 | IMAX Corp.(Æ) | 12,112 | 369 | ||
Caleres, Inc. | 17,957 | 518 | Inter Parfums, Inc. | 4,800 | 182 | ||
Capella Education Co. | 4,888 | 466 | J Alexander's Holdings, Inc.(Æ) | 251,960 | 2,771 | ||
Care.com, Inc.(Æ) | 15,600 | 185 | Jack in the Box, Inc. | 42,114 | 4,295 | ||
Carriage Services, Inc. Class A | 78,745 | 2,154 | John Wiley & Sons, Inc. Class A | 4,721 | 249 | ||
Carrols Restaurant Group, Inc.(Æ) | 40,081 | 561 | K12, Inc.(Æ) | 29,370 | 554 | ||
Cato Corp. (The) Class A | 15,022 | 339 | KAR Auction Services, Inc. | 39,240 | 1,712 | ||
Cavco Industries, Inc.(Æ) | 2,803 | 333 | Kirkland's, Inc.(Æ) | 39,741 | 468 | ||
Central Garden & Pet Co.(Æ)(Ñ) | 35,560 | 1,344 | La-Z-Boy, Inc. Class Z | 36,003 | 1,004 | ||
Century Communities, Inc.(Æ) | 153,739 | 4,198 | Lee Enterprises, Inc.(Æ)(Ñ) | 695,247 | 1,808 | ||
Cheesecake Factory, Inc. (The) | 50,127 | 3,217 | LGI Homes, Inc.(Æ)(Ñ) | 25,600 | 815 | ||
Chegg, Inc.(Æ)(Ñ) | 341,191 | 3,074 | Libbey, Inc. | 125,950 | 1,322 | ||
Cherokee, Inc.(Æ) | 73,005 | 628 | Lindblad Expeditions Holdings, Inc.(Æ) | 157,900 | 1,500 | ||
Children's Place, Inc. (The) | 34,245 | 3,931 | Lithia Motors, Inc. Class A | 44,440 | 4,246 | ||
Citi Trends, Inc. | 11,500 | 216 | Lumber Liquidators Holdings, Inc.(Æ)(Ñ) | 100,500 | 2,467 | ||
ClubCorp Holdings, Inc. | 210,538 | 2,832 | M/I Homes, Inc.(Æ) | 21,081 | 573 | ||
Columbia Sportswear Co. | 39,366 | 2,229 | Malibu Boats, Inc. Class A(Æ) | 21,849 | 503 | ||
Conn's, Inc.(Æ) | 5,700 | 100 | Marchex, Inc. Class B(Æ) | 56,733 | 154 | ||
Cooper Tire & Rubber Co. | 17,189 | 658 | Marcus Corp. | 6,600 | 223 | ||
Cooper-Standard Holdings, Inc.(Æ) | 17,407 | 1,968 | MarineMax, Inc.(Æ) | 22,980 | 468 | ||
Cracker Barrel Old Country Store, Inc.(Ñ) | 1,628 | 261 | MDC Partners, Inc. Class A(Ñ) | 398,944 | 3,571 | ||
Crocs, Inc.(Æ) | 118,700 | 740 | Meredith Corp.(Ñ) | 7,259 | 425 | ||
Dave & Buster's Entertainment, Inc.(Æ) | 43,854 | 2,807 | Meritage Homes Corp.(Æ) | 15,736 | 613 | ||
Del Frisco's Restaurant Group, Inc.(Æ) | 122,790 | 2,112 | Monro Muffler Brake, Inc. | 51,251 | 2,657 | ||
Del Taco Restaurants, Inc.(Æ) | 205,712 | 2,705 | Movado Group, Inc. | 27,013 | 632 | ||
Delta Apparel, Inc.(Æ) | 119,121 | 2,089 | MSG Networks, Inc.(Æ) | 19,600 | 489 | ||
Denny's Corp.(Æ) | 90,380 | 1,148 | Nexstar Media Group, Inc. Class A | 7,978 | 550 | ||
Destination XL Group, Inc.(Æ) | 42,900 | 109 | Nutrisystem, Inc. | 50,547 | 2,701 | ||
DeVry Education Group, Inc. | 31,457 | 1,191 | Ollie's Bargain Outlet Holdings, Inc.(Æ)(Ñ) | 102,046 | 3,907 | ||
Dick's Sporting Goods, Inc. | 2,900 | 147 | Outfront Media, Inc.(ö) | 64,602 | 1,690 | ||
DineEquity, Inc. | 10,048 | 568 | Oxford Industries, Inc. | 19,566 | 1,134 | ||
DSW, Inc. Class A | 26,963 | 556 | Panera Bread Co. Class A(Æ) | 4,870 | 1,523 | ||
Duluth Holdings, Inc. Class B(Æ) | 29,794 | 660 | Papa John's International, Inc. | 40,899 | 3,233 | ||
Eldorado Resorts, Inc.(Æ)(Ñ) | 165,667 | 3,168 | Peak Resorts, Inc. | 156,813 | 878 | ||
Entravision Communications Corp. Class A | 353,776 | 2,193 | Penn National Gaming, Inc.(Æ) | 26,896 | 497 | ||
Ethan Allen Interiors, Inc. | 42,510 | 1,267 | Perry Ellis International, Inc.(Æ) | 16,602 | 341 | ||
EW Scripps Co. (The) Class A(Æ) | 36,187 | 806 | Pier 1 Imports, Inc. | 34,200 | 231 | ||
Express, Inc.(Æ) | 196,905 | 1,699 | Pinnacle Entertainment, Inc.(Æ) | 48,285 | 993 | ||
Extended Stay America, Inc. | 20,487 | 357 | Planet Fitness, Inc. Class A | 87,933 | 1,829 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 117
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Pool Corp. | 40,835 | 4,884 | Freshpet, Inc.(Æ)(Ñ) | 72,500 | 852 | ||
Potbelly Corp.(Æ) | 12,000 | 167 | Ingles Markets, Inc. Class A | 10,036 | 469 | ||
Radio One, Inc. Class D(Æ)(Ñ) | 248,251 | 745 | Inventure Foods, Inc.(Æ)(Ñ) | 143,883 | 532 | ||
Red Robin Gourmet Burgers, Inc.(Æ) | 8,594 | 505 | J&J Snack Foods Corp. | 26,038 | 3,504 | ||
Red Rock Resorts, Inc. Class A | 24,361 | 570 | Lancaster Colony Corp. | 6,092 | 767 | ||
Rent-A-Center, Inc. Class A(Ñ) | 32,400 | 346 | MGP Ingredients, Inc. | 57,280 | 2,999 | ||
Rocky Brands, Inc. | 5,100 | 72 | New Age Beverages Corp.(Æ) | 170,857 | 634 | ||
Rosetta Stone, Inc.(Æ) | 5,800 | 65 | Nomad Foods, Ltd.(Æ) | 448,506 | 5,293 | ||
Scholastic Corp. | 36,770 | 1,590 | Orchids Paper Products Co.(Ñ) | 16,509 | 402 | ||
Scientific Games Corp. Class A(Æ) | 21,022 | 499 | PetMed Express, Inc. | 20,664 | 477 | ||
SeaWorld Entertainment, Inc.(Æ) | 55,609 | 975 | Primo Water Corp.(Æ) | 150,276 | 1,799 | ||
Sequential Brands Group, Inc.(Æ)(Ñ) | 170,940 | 576 | Sanderson Farms, Inc. | 8,253 | 956 | ||
Shoe Carnival, Inc. | 24,000 | 609 | Snyders-Lance, Inc. | 102,269 | 3,606 | ||
Sinclair Broadcast Group, Inc. Class A | 11,888 | 469 | SpartanNash Co. | 76,876 | 2,829 | ||
Six Flags Entertainment Corp. | 14,690 | 920 | Sprouts Farmers Market, Inc.(Æ) | 44,863 | 1,001 | ||
Sonic Automotive, Inc. Class A | 22,766 | 446 | United Natural Foods, Inc.(Æ) | 45,689 | 1,897 | ||
Stamps.com, Inc.(Æ)(Ñ) | 26,141 | 2,775 | Universal Corp. | 3,322 | 244 | ||
Standard Motor Products, Inc. | 77,674 | 3,948 | Vector Group, Ltd. | 12,058 | 262 | ||
Steven Madden, Ltd.(Æ) | 30,224 | 1,150 | WD-40 Co. | 3,139 | 329 | ||
Stoneridge, Inc.(Æ) | 6,000 | 118 | 55,191 | ||||
Sturm Ruger & Co., Inc. | 12,358 | 747 | |||||
Superior Uniform Group, Inc. | 214,506 | 3,912 | Energy - 3.3% | ||||
Texas Roadhouse, Inc. Class A | 13,975 | 655 | Ameresco, Inc. Class A(Æ) | 30,928 | 199 | ||
Thor Industries, Inc. | 46,579 | 4,479 | Approach Resources, Inc.(Æ)(Ñ) | 246,638 | 511 | ||
Tilly's, Inc. Class A | 14,201 | 136 | Archrock, Inc.(Æ) | 26,900 | 317 | ||
Time, Inc. | 47,500 | 722 | Basic Energy Services, Inc.(Æ) | 12,149 | 330 | ||
Tower International, Inc. | 29,465 | 799 | Bill Barrett Corp.(Æ) | 180,900 | 695 | ||
Townsquare Media, Inc. Class A(Æ) | 183,582 | 2,222 | C&J Energy Services, Inc.(Æ) | 14,192 | 415 | ||
TravelCenters of America LLC(Æ) | 235,213 | 1,435 | Callon Petroleum Co.(Æ) | 213,950 | 2,533 | ||
Travelzoo, Inc.(Æ) | 800 | 7 | Carrizo Oil & Gas, Inc.(Æ) | 55,894 | 1,406 | ||
Tribune Media Co. Class A | 73,064 | 2,671 | Civeo Corp.(Æ) | 209,876 | 628 | ||
Tropicana Entertainment, Inc.(Æ) | 22,196 | 774 | Delek US Holdings, Inc. | 209,529 | 5,043 | ||
Vera Bradley, Inc.(Æ)(Ñ) | 46,525 | 426 | Eclipse Resources Corp.(Æ) | 347,200 | 698 | ||
Visteon Corp.(Æ) | 27,009 | 2,781 | Energen Corp.(Æ) | 1,700 | 88 | ||
Vitamin Shoppe, Inc.(Æ) | 22,949 | 443 | Exterran Corp.(Æ) | 32,095 | 879 | ||
VOXX International Corp. Class A(Æ) | 32,286 | 210 | Flotek Industries, Inc.(Æ)(Ñ) | 65,400 | 785 | ||
Weight Watchers International, Inc.(Æ)(Ñ) | 14,693 | 307 | Gastar Exploration, Inc.(Æ)(Ñ) | 266,545 | 349 | ||
West Marine, Inc. | 8,728 | 96 | Gores Holdings, Inc. Class A(Æ) | 267,702 | 4,587 | ||
William Lyon Homes Class A(Æ)(Ñ) | 258,498 | 5,686 | Green Plains, Inc. | 28,500 | 656 | ||
Wingstop, Inc. | 35,319 | 1,039 | Gulf Island Fabrication, Inc. | 12,499 | 124 | ||
Winnebago Industries, Inc. | 9,525 | 273 | Gulfport Energy Corp.(Æ) | 240,400 | 3,817 | ||
Wolverine World Wide, Inc. | 85,919 | 2,072 | Independence Contract Drilling, Inc.(Æ) | 98,599 | 455 | ||
YuMe, Inc.(Æ) | 11,900 | 50 | Keane Group, Inc.(Æ)(Ñ) | 43,130 | 596 | ||
ZAGG, Inc.(Æ) | 63,827 | 453 | Laredo Petroleum, Inc.(Æ) | 31,350 | 403 | ||
205,363 | Mammoth Energy Services, Inc.(Æ)(Ñ) | 72,721 | 1,403 | ||||
Matador Resources Co.(Æ)(Ñ) | 59,714 | 1,295 | |||||
Consumer Staples - 3.2% | Matrix Service Co.(Æ) | 119,542 | 1,405 | ||||
Andersons, Inc. (The) | 85,129 | 3,180 | Nabors Industries, Ltd. | 324,457 | 3,355 | ||
B&G Foods, Inc. Class A | 10,677 | 448 | Newfield Exploration Co.(Æ) | 2,300 | 80 | ||
Boston Beer Co., Inc. Class A(Æ) | 3,350 | 484 | Newpark Resources, Inc.(Æ) | 229,993 | 1,759 | ||
Cadiz, Inc.(Æ) | 36,600 | 553 | Noble Corp. PLC(Ñ) | 61,945 | 297 | ||
Calavo Growers, Inc.(Ñ) | 58,699 | 3,851 | Oasis Petroleum, Inc.(Æ) | 24,767 | 296 | ||
Casey's General Stores, Inc.(Ñ) | 31,350 | 3,513 | Oceaneering International, Inc. | 67,269 | 1,775 | ||
Core-Mark Holding Co., Inc. | 233,734 | 8,185 | Pacific Ethanol, Inc.(Æ) | 226,800 | 1,542 | ||
Dean Foods Co. | 3,900 | 77 | Patterson-UTI Energy, Inc. | 13,385 | 290 | ||
Energizer Holdings, Inc. | 65,158 | 3,859 | PBF Energy, Inc. Class A(Ñ) | 87,123 | 1,945 | ||
Farmer Brothers Co.(Æ) | 16,934 | 601 | PDC Energy, Inc.(Æ) | 6,462 | 357 | ||
Flowers Foods, Inc. | 80,969 | 1,588 | Phillips 66 Partners, LP(Ñ) | 68,643 | 3,616 |
See accompanying notes which are an integral part of the financial statements.
118 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
ProPetro Holding Corp.(Æ) | 45,900 | 622 | Brandywine Realty Trust(ö) | 81,372 | 1,381 | ||
QEP Resources, Inc.(Æ) | 74,390 | 879 | Brookline Bancorp, Inc. | 183,704 | 2,673 | ||
Renewable Energy Group, Inc.(Æ)(Ñ) | 51,013 | 533 | Camden Property Trust(ö) | 5,600 | 461 | ||
Rice Energy, Inc.(Æ) | 22,886 | 487 | Capital Bank Financial Corp. Class A | 18,394 | 763 | ||
Ring Energy, Inc.(Æ) | 31,797 | 382 | Capital City Bank Group, Inc. | 5,990 | 123 | ||
RPC, Inc.(Ñ) | 34,989 | 636 | Capital Southwest Corp. | 64,104 | 1,040 | ||
Sanchez Energy Corp.(Æ)(Ñ) | 62,954 | 487 | Capstar Financial Holdings, Inc.(Æ) | 46,062 | 813 | ||
Select Energy Services, Inc. Class A(Æ) | 43,600 | 670 | CareTrust REIT, Inc.(ö) | 66,500 | 1,132 | ||
SunCoke Energy, Inc.(Æ) | 198,776 | 1,823 | CatchMark Timber Trust, Inc. Class A(ö) | 17,840 | 209 | ||
Superior Energy Services, Inc.(Æ) | 31,534 | 381 | Cathay General Bancorp | 17,041 | 648 | ||
TETRA Technologies, Inc.(Æ) | 719,800 | 2,397 | Cedar Realty Trust, Inc.(ö) | 229,400 | 1,234 | ||
Unit Corp.(Æ) | 79,722 | 1,713 | CenterState Banks, Inc. | 12,909 | 326 | ||
Western Refining, Inc.(Ñ) | 9,352 | 323 | Central Pacific Financial Corp. | 134,638 | 4,211 | ||
Westmoreland Coal Co.(Æ) | 47,400 | 505 | Central Valley Community Bancorp | 9,387 | 213 | ||
World Fuel Services Corp. | 8,600 | 317 | Charter Financial Corp. | 134,717 | 2,472 | ||
WPX Energy, Inc.(Æ) | 44,546 | 531 | Chatham Lodging Trust(ö) | 18,414 | 356 | ||
57,615 | Chemical Financial Corp. | 28,504 | 1,353 | ||||
Chemung Financial Corp. | 1,627 | 62 | |||||
Financial Services - 24.4% | Chesapeake Lodging Trust(ö) | 97,714 | 2,278 | ||||
1st Source Corp. | 6,100 | 295 | City Holding Co. | 6,176 | 439 | ||
Acadia Realty Trust(ö) | 23,554 | 685 | City Office REIT, Inc.(ö) | 26,550 | 333 | ||
Access National Corp. | 9,737 | 276 | Civista Bancshares, Inc. | 56,904 | 1,236 | ||
Agree Realty Corp.(ö) | 7,726 | 375 | CNO Financial Group, Inc. | 165,344 | 3,484 | ||
Alexander's, Inc.(ö) | 678 | 295 | CoBiz Financial, Inc. | 48,834 | 802 | ||
Altisource Residential Corp.(ö) | 27,159 | 391 | Cohen & Steers, Inc. | 23,988 | 957 | ||
Ambac Financial Group, Inc.(Æ) | 20,524 | 399 | Colony Starwood Homes(ö) | 131,920 | 4,561 | ||
American Assets Trust, Inc.(ö) | 10,760 | 461 | Columbia Banking System, Inc. | 96,670 | 3,820 | ||
American Equity Investment Life Holding | Columbia Property Trust, Inc.(ö) | 47,768 | 1,075 | ||||
Co. | 59,532 | 1,412 | Community Healthcare Trust, Inc.(ö) | 84,590 | 2,091 | ||
American National Bankshares, Inc. | 2,990 | 115 | Community Trust Bancorp, Inc. | 25,573 | 1,149 | ||
AMERISAFE, Inc. | 41,154 | 2,368 | Condor Hospitality Trust, Inc.(ö) | 15,000 | 161 | ||
Arbor Realty Trust, Inc.(ö) | 25,228 | 218 | CoreSite Realty Corp. Class A(ö) | 7,290 | 713 | ||
Ares Commercial Real Estate Corp.(ö) | 67,890 | 939 | Cousins Properties, Inc.(ö) | 87,178 | 740 | ||
Argo Group International Holdings, Ltd. | 33,799 | 2,229 | CU Bancorp(Æ) | 41,060 | 1,531 | ||
Armada Hoffler Properties, Inc.(ö) | 29,973 | 427 | Customers Bancorp, Inc.(Æ) | 65,600 | 2,029 | ||
Ashford Hospitality Trust, Inc.(ö) | 79,600 | 498 | CyrusOne, Inc.(ö) | 70,754 | 3,866 | ||
Ashford, Inc.(Æ) | 14,576 | 793 | DDR Corp.(ö) | 16,500 | 178 | ||
Associated Capital Group, Inc. Class A | 990 | 33 | Diamond Hill Investment Group, Inc. | 9,914 | 2,004 | ||
Assurant, Inc. | 10,000 | 962 | DiamondRock Hospitality Co.(ö) | 115,214 | 1,269 | ||
Atlantic Capital Bancshares, Inc.(Æ) | 13,755 | 270 | Donegal Group, Inc. Class A | 1,936 | 32 | ||
Baldwin & Lyons, Inc. Class B | 5,500 | 135 | DuPont Fabros Technology, Inc.(ö) | 87,055 | 4,488 | ||
Banc of California, Inc.(Ñ) | 56,994 | 1,237 | Eagle Bancorp, Inc.(Æ) | 22,093 | 1,323 | ||
BancFirst Corp. | 15,400 | 1,479 | East West Bancorp, Inc. | 15,100 | 819 | ||
Banco Latinoamericano de Comercio Exterior | Easterly Government Properties, Inc.(Ñ)(ö) | 19,800 | 398 | ||||
SA Class E | 28,376 | 814 | EastGroup Properties, Inc.(ö) | 19,999 | 1,564 | ||
Bank Mutual Corp. | 40,679 | 374 | Education Realty Trust, Inc.(ö) | 13,313 | 516 | ||
Bank of Marin Bancorp | 6,410 | 405 | EMC Insurance Group, Inc. | 8,784 | 252 | ||
Bank of N.T. Butterfield & Son, Ltd. | 11,269 | 375 | Employers Holdings, Inc. | 10,713 | 429 | ||
Bank of the Ozarks, Inc. | 126,252 | 5,994 | Enova International, Inc.(Æ) | 48,700 | 692 | ||
Banner Corp. | 30,300 | 1,673 | Enstar Group, Ltd.(Æ) | 8,140 | 1,586 | ||
Berkshire Hills Bancorp, Inc. | 36,880 | 1,383 | Enterprise Financial Services Corp. | 25,180 | 1,064 | ||
BGC Partners, Inc. Class A | 112,730 | 1,283 | EPR Properties(ö) | 3,510 | 255 | ||
Blackhawk Network Holdings, Inc. Class | Equity Commonwealth(Æ)(ö) | 111,200 | 3,557 | ||||
A(Æ) | 76,875 | 3,110 | Evercore Partners, Inc. Class A | 70,097 | 5,170 | ||
Bluerock Residential Growth REIT, Inc. | Ezcorp, Inc. Class A(Æ) | 184,350 | 1,668 | ||||
Class A(Ñ)(ö) | 77,640 | 967 | Fair Isaac Corp. | 5,637 | 764 | ||
BNC Bancorp | 33,347 | 1,115 | Farmers Capital Bank Corp. | 3,017 | 125 | ||
Boston Private Financial Holdings, Inc. | 32,304 | 504 | FB Financial Corp.(Æ)(Ñ) | 23,365 | 847 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 119
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
FBR & Co. | 53,300 | 965 | Hope Bancorp, Inc. | 29,956 | 548 | ||
FCB Financial Holdings, Inc. Class A(Æ) | 8,941 | 422 | Houlihan Lokey, Inc. Class A | 7,657 | 257 | ||
Federated National Holding Co. | 19,231 | 309 | Howard Hughes Corp. (The)(Æ) | 13,700 | 1,687 | ||
FelCor Lodging Trust, Inc.(ö) | 106,289 | 823 | Hudson Pacific Properties, Inc.(ö) | 21,825 | 750 | ||
Fidelity Southern Corp. | 18,374 | 413 | Iberiabank Corp. | 69,018 | 5,477 | ||
Financial Institutions, Inc. | 30,886 | 1,034 | Independence Realty Trust, Inc.(ö) | 226,713 | 2,086 | ||
First BanCorp(Æ) | 189,227 | 1,113 | Independent Bank Corp. | 105,871 | 2,361 | ||
First Business Financial Services, Inc. | 10,660 | 283 | Independent Bank Group, Inc. | 13,338 | 802 | ||
First Community Bancshares, Inc. | 5,700 | 151 | Infinity Property & Casualty Corp. | 14,549 | 1,444 | ||
First Connecticut Bancorp, Inc. | 14,104 | 377 | InfraREIT, Inc.(ö) | 23,100 | 441 | ||
First Defiance Financial Corp. | 18,800 | 1,008 | Investment Technology Group, Inc. | 26,700 | 532 | ||
First Financial Bancorp | 21,334 | 590 | Investors Bancorp, Inc. | 161,105 | 2,231 | ||
First Financial Corp. | 15,115 | 738 | Jack Henry & Associates, Inc. | 53,933 | 5,228 | ||
First Financial Northwest, Inc. | 5,000 | 78 | JMP Group LLC(Ñ) | 36,844 | 215 | ||
First Foundation, Inc.(Æ) | 159,400 | 2,503 | Kearny Financial Corp. | 485,222 | 7,085 | ||
First Horizon National Corp. | 181,818 | 3,336 | Kemper Corp. | 96,540 | 3,798 | ||
First Industrial Realty Trust, Inc.(ö) | 35,634 | 1,003 | Kennedy-Wilson Holdings, Inc. | 228,976 | 4,671 | ||
First Interstate BancSystem, Inc. Class A | 29,441 | 1,111 | Kite Realty Group Trust(ö) | 35,411 | 721 | ||
First Merchants Corp. | 93,602 | 3,873 | Lakeland Bancorp, Inc. | 155,130 | 3,017 | ||
First Midwest Bancorp, Inc. | 150,757 | 3,423 | LaSalle Hotel Properties(ö) | 33,317 | 952 | ||
Flagstar Bancorp, Inc.(Æ) | 24,197 | 708 | LCNB Corp. | 44,481 | 985 | ||
FNB Corp. | 455,391 | 6,486 | LegacyTexas Financial Group, Inc. | 12,850 | 486 | ||
FNFV Group(Æ) | 384,189 | 5,263 | LendingTree, Inc.(Æ)(Ñ) | 36,626 | 5,162 | ||
Four Corners Property Trust, Inc.(ö) | 22,908 | 534 | Lexington Realty Trust(ö) | 49,993 | 508 | ||
Franklin Financial Network, Inc.(Æ) | 10,482 | 425 | LTC Properties, Inc.(ö) | 9,419 | 451 | ||
Franklin Street Properties Corp.(ö) | 70,896 | 860 | Mack-Cali Realty Corp.(ö) | 50,610 | 1,369 | ||
FRP Holdings, Inc.(Æ)(Þ) | 41,015 | 1,752 | Maiden Holdings, Ltd. | 111,700 | 1,379 | ||
Fulton Financial Corp. | 158,673 | 2,927 | Marcus & Millichap, Inc.(Æ) | 6,906 | 178 | ||
Genworth Financial, Inc. Class A(Æ) | 86,899 | 351 | MB Financial, Inc. | 100,741 | 4,282 | ||
GEO Group, Inc. (The)(ö) | 59,799 | 1,993 | MedEquities Realty Trust, Inc.(ö) | 116,100 | 1,372 | ||
German American Bancorp, Inc. | 3,972 | 131 | Medical Properties Trust, Inc.(ö) | 423,397 | 5,534 | ||
Getty Realty Corp.(ö) | 29,839 | 764 | Mercantile Bank Corp. | 1,200 | 40 | ||
Gladstone Commercial Corp.(ö) | 19,833 | 442 | Meridian Bancorp, Inc. | 156,759 | 2,751 | ||
Golub Capital BDC, Inc.(Ñ) | 26,490 | 538 | Meta Financial Group, Inc. | 3,130 | 266 | ||
Gramercy Property Trust(ö) | 132,476 | 3,681 | MGIC Investment Corp.(Æ) | 19,618 | 207 | ||
Great Southern Bancorp, Inc. | 14,130 | 709 | Midland States Bancorp, Inc. | 22,431 | 774 | ||
Great Western Bancorp, Inc. | 21,400 | 882 | MidSouth Bancorp, Inc. | 1,700 | 26 | ||
Green Dot Corp. Class A(Æ) | 97,863 | 3,355 | MidWestOne Financial Group, Inc. | 300 | 10 | ||
Greenhill & Co., Inc. | 9,007 | 228 | Moelis & Co. Class A | 116,125 | 4,262 | ||
Guaranty Bancorp | 26,092 | 656 | Monogram Residential Trust, Inc.(ö) | 52,690 | 536 | ||
Hallmark Financial Services, Inc.(Æ) | 12,516 | 132 | Morningstar, Inc. | 41,050 | 3,002 | ||
Hamilton Lane, Inc. Class A(Æ) | 34,759 | 651 | National Bank Holdings Corp. Class A | 105,100 | 3,318 | ||
Hancock Holding Co. | 33,600 | 1,569 | National Commerce Corp.(Æ) | 8,614 | 333 | ||
Hannon Armstrong Sustainable Infrastructure | National Health Investors, Inc.(ö) | 12,658 | 926 | ||||
Capital, Inc.(ö) | 23,586 | 517 | National Storage Affiliates Trust(ö) | 12,384 | 303 | ||
Hanover Insurance Group, Inc. (The) | 34,657 | 3,060 | National Western Life Group, Inc. Class A | 2,496 | 764 | ||
Health Insurance Innovations, Inc. Class | Navigators Group, Inc. (The) | 38,280 | 2,069 | ||||
A(Æ)(Ñ) | 58,637 | 982 | NBT Bancorp, Inc. | 14,508 | 554 | ||
Healthcare Realty Trust, Inc.(ö) | 48,577 | 1,594 | New York REIT, Inc.(ö) | 182,970 | 1,746 | ||
Heartland Financial USA, Inc. | 5,484 | 263 | NexPoint Residential Trust, Inc.(ö) | 12,934 | 311 | ||
Hercules Technology Growth Capital, Inc.(Ñ) | 69,385 | 1,077 | NMI Holdings, Inc. Class A(Æ) | 200,411 | 2,325 | ||
Heritage Commerce Corp. | 52,340 | 747 | Northfield Bancorp, Inc. | 127,900 | 2,351 | ||
Heritage Financial Corp. | 122,107 | 3,223 | Northrim BanCorp, Inc. | 2,700 | 86 | ||
Heritage Insurance Holdings, Inc. | 53,808 | 651 | Northwest Bancshares, Inc. | 56,332 | 909 | ||
Hersha Hospitality Trust Class A(ö) | 66,000 | 1,217 | OFG Bancorp | 33,543 | 392 | ||
HFF, Inc. Class A | 7,892 | 248 | Old Line Bancshares, Inc. | 9,057 | 251 | ||
Home Bancorp, Inc. | 2,400 | 89 | Old National Bancorp | 178,383 | 2,997 | ||
Home BancShares, Inc. | 156,675 | 3,987 | OM Asset Management PLC | 247,685 | 3,854 |
See accompanying notes which are an integral part of the financial statements.
120 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
One Liberty Properties, Inc.(ö) | 11,103 | 270 | State Bank Financial Corp. | 123,739 | 3,324 | ||
OneBeacon Insurance Group, Ltd. Class A | 139,833 | 2,230 | State National Companies, Inc. | 9,000 | 132 | ||
Oppenheimer Holdings, Inc. Class A | 9,263 | 160 | Sterling Bancorp | 62,826 | 1,461 | ||
Pacific Premier Bancorp, Inc.(Æ) | 56,949 | 2,081 | Stewart Information Services Corp. | 6,900 | 327 | ||
PacWest Bancorp | 30,902 | 1,526 | Stock Yards Bancorp, Inc. | 18,461 | 757 | ||
Park National Corp. | 1,710 | 180 | Stonegate Bank | 61,568 | 2,826 | ||
Park Sterling Corp. | 52,090 | 641 | Summit Hotel Properties, Inc.(ö) | 31,571 | 522 | ||
Parkway, Inc.(ö) | 10,897 | 220 | Sunstone Hotel Investors, Inc.(ö) | 43,694 | 651 | ||
PCSB Financial Corp.(Æ) | 29,232 | 477 | Synovus Financial Corp. | 5,900 | 247 | ||
Pebblebrook Hotel Trust(Ñ)(ö) | 17,684 | 526 | Tanger Factory Outlet Centers, Inc.(ö) | 87,642 | 2,734 | ||
Pennsylvania Real Estate Investment Trust(ö) | 43,600 | 604 | TCF Financial Corp. | 125,644 | 2,074 | ||
PennyMac Financial Services, Inc. Class A | 13,929 | 230 | Terreno Realty Corp.(ö) | 15,984 | 494 | ||
Peoples Bancorp, Inc. | 11,244 | 376 | Territorial Bancorp, Inc. | 9,193 | 285 | ||
People's Utah Bancorp | 55,360 | 1,462 | Texas Capital Bancshares, Inc.(Æ) | 33,678 | 2,563 | ||
Physicians Realty Trust(ö) | 34,185 | 671 | Third Point Reinsurance, Ltd.(Æ) | 49,742 | 602 | ||
Pinnacle Financial Partners, Inc. | 11,581 | 741 | Towne Bank | 22,280 | 723 | ||
Planet Payment, Inc.(Æ) | 305,459 | 1,274 | TriCo Bancshares | 53,647 | 1,903 | ||
Popular, Inc. | 100,200 | 4,199 | TriState Capital Holdings, Inc.(Æ) | 34,909 | 869 | ||
Potlatch Corp.(ö) | 112,468 | 5,067 | TrustCo Bank Corp. | 155,336 | 1,235 | ||
Preferred Apartment Communities, Inc. Class | Trustmark Corp. | 40,106 | 1,332 | ||||
A(ö) | 25,200 | 357 | Two Harbors Investment Corp.(ö) | 203,800 | 2,036 | ||
Preferred Bank | 20,780 | 1,101 | UMB Financial Corp. | 53,232 | 3,859 | ||
Primerica, Inc. | 6,102 | 511 | Umpqua Holdings Corp. | 152,168 | 2,689 | ||
PrivateBancorp, Inc. Class A | 13,323 | 770 | United Bankshares, Inc. | 56,243 | 2,244 | ||
Prosperity Bancshares, Inc. | 88,315 | 5,935 | United Community Banks, Inc. | 74,836 | 2,047 | ||
Provident Financial Holdings, Inc. | 5,437 | 105 | United Financial Bancorp, Inc. | 175,867 | 3,038 | ||
PS Business Parks, Inc.(ö) | 16,889 | 2,053 | United Fire Group, Inc. | 10,125 | 446 | ||
Pzena Investment Management, Inc. Class A | 144,689 | 1,489 | Universal Health Realty Income Trust(ö) | 6,193 | 432 | ||
QCR Holdings, Inc. | 12,137 | 553 | Universal Insurance Holdings, Inc.(Ñ) | 10,498 | 273 | ||
QTS Realty Trust, Inc. Class A(ö) | 14,000 | 748 | Univest Corp. of Pennsylvania | 10,167 | 308 | ||
Ramco-Gershenson Properties Trust(ö) | 43,818 | 584 | Urban Edge Properties(ö) | 31,583 | 805 | ||
Rayonier, Inc.(ö) | 93,762 | 2,646 | Urstadt Biddle Properties, Inc. Class A(ö) | 17,499 | 344 | ||
Real Industry, Inc.(Æ) | 240,000 | 624 | Valley National Bancorp | 106,720 | 1,255 | ||
Redwood Trust, Inc.(ö) | 40,713 | 695 | Virtu Financial, Inc. Class A(Ñ) | 14,581 | 225 | ||
Reinsurance Group of America, Inc. Class A | 6,060 | 758 | Voya Financial, Inc. | 27,300 | 1,020 | ||
Renasant Corp. | 14,907 | 632 | Waddell & Reed Financial, Inc. Class A(Ñ) | 24,525 | 441 | ||
Retail Opportunity Investments Corp.(ö) | 158,533 | 3,266 | Walker & Dunlop, Inc.(Æ) | 18,960 | 850 | ||
Retail Properties of America, Inc. Class A(ö) | 12,300 | 164 | Washington Federal, Inc. | 28,700 | 967 | ||
Rexford Industrial Realty, Inc.(ö) | 20,304 | 506 | Washington Real Estate Investment Trust(ö) | 26,585 | 842 | ||
RLJ Lodging Trust(ö) | 40,441 | 869 | Webster Financial Corp. | 9,093 | 462 | ||
Ryman Hospitality Properties, Inc.(ö) | 44,806 | 2,858 | WesBanco, Inc. | 66,434 | 2,645 | ||
S&T Bancorp, Inc. | 17,183 | 618 | Westamerica Bancorporation(Ñ) | 23,299 | 1,282 | ||
Sabra Health Care REIT, Inc.(ö) | 18,318 | 498 | Western Alliance Bancorp(Æ) | 47,925 | 2,296 | ||
Sandy Spring Bancorp, Inc. | 21,500 | 930 | Whitestone REIT Class B(ö) | 17,884 | 224 | ||
Saul Centers, Inc.(ö) | 5,170 | 310 | Wintrust Financial Corp. | 64,613 | 4,579 | ||
Select Income REIT(ö) | 19,715 | 494 | WisdomTree Investments, Inc.(Ñ) | 39,771 | 332 | ||
Selective Insurance Group, Inc. | 34,990 | 1,847 | WSFS Financial Corp. | 32,255 | 1,522 | ||
Seritage Growth Properties(Ñ)(ö) | 27,300 | 1,133 | Xenia Hotels & Resorts, Inc.(ö) | 29,524 | 515 | ||
ServisFirst Bancshares, Inc.(Ñ) | 15,038 | 568 | Zions Bancorporation | 7,900 | 316 | ||
Shore Bancshares, Inc. | 2,900 | 48 | 423,273 | ||||
Sierra Bancorp | 10,450 | 262 | |||||
SLM Corp.(Æ) | 65,590 | 822 | Health Care - 11.2% | ||||
SmartFinancial, Inc.(Æ) | 10,997 | 243 | Abaxis, Inc. | 72,564 | 3,268 | ||
South State Corp. | 70,751 | 6,237 | Acadia Healthcare Co., Inc.(Æ)(Ñ) | 105,800 | 4,611 | ||
Southern National Bancorp of Virginia, Inc. | 39,395 | 717 | Acceleron Pharma, Inc.(Æ) | 14,196 | 469 | ||
Southwest Bancorp, Inc. | 83,393 | 2,164 | Accuray, Inc.(Æ)(Ñ) | 329,300 | 1,498 | ||
STAG Industrial, Inc.(ö) | 20,981 | 553 | Aclaris Therapeutics, Inc.(Æ) | 20,172 | 567 | ||
State Auto Financial Corp. | 25,097 | 674 | Acorda Therapeutics, Inc.(Æ) | 41,391 | 668 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 121
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Addus HomeCare Corp.(Æ) | 18,379 | 624 | Infinity Pharmaceuticals, Inc.(Æ) | 83,100 | 179 | ||
Aduro Biotech, Inc. Class A(Æ) | 22,836 | 220 | Innoviva, Inc.(Æ) | 31,156 | 367 | ||
Aerie Pharmaceuticals, Inc.(Æ) | 13,869 | 611 | Inogen, Inc.(Æ) | 57,037 | 4,728 | ||
Aimmune Therapeutics, Inc.(Æ)(Ñ) | 18,851 | 366 | Inovio Pharmaceuticals, Inc.(Æ)(Ñ) | 41,192 | 259 | ||
Akebia Therapeutics, Inc.(Æ) | 4,800 | 63 | Integra LifeSciences Holdings Corp.(Æ) | 80,904 | 3,719 | ||
Alder Biopharmaceuticals, Inc.(Æ) | 20,389 | 409 | Intercept Pharmaceuticals, Inc.(Æ)(Ñ) | 9,991 | 1,122 | ||
Allscripts Healthcare Solutions, Inc.(Æ) | 160,540 | 1,922 | Intersect ENT, Inc.(Æ) | 28,705 | 545 | ||
AMAG Pharmaceuticals, Inc.(Æ)(Ñ) | 214,699 | 5,240 | Intra-Cellular Therapies, Inc. Class A(Æ) | 14,794 | 204 | ||
Amedisys, Inc.(Æ) | 11,650 | 631 | Invacare Corp. | 49,400 | 726 | ||
Amicus Therapeutics, Inc.(Æ) | 52,315 | 402 | InVivo Therapeutics Holdings Corp.(Æ)(Ñ) | 11,404 | 43 | ||
AMN Healthcare Services, Inc.(Æ) | 156,964 | 6,413 | Ironwood Pharmaceuticals, Inc. Class A(Æ) | 36,439 | 595 | ||
Analogic Corp. | 15,265 | 1,097 | K2M Group Holdings, Inc.(Æ) | 48,921 | 1,084 | ||
AngioDynamics, Inc.(Æ) | 31,383 | 487 | Kadmon Holdings, Inc.(Æ) | 10,102 | 28 | ||
Anika Therapeutics, Inc.(Æ) | 21,193 | 978 | Karyopharm Therapeutics, Inc.(Æ) | 22,602 | 231 | ||
Array BioPharma, Inc.(Æ)(Ñ) | 67,806 | 588 | Kite Pharma, Inc.(Æ) | 16,169 | 1,327 | ||
Atrion Corp. | 2,366 | 1,223 | LeMaitre Vascular, Inc. | 10,591 | 315 | ||
Avadel Pharmaceuticals PLC(Å)(Æ) | 283,349 | 2,689 | Lexicon Pharmaceuticals, Inc.(Æ)(Ñ) | 21,276 | 332 | ||
AxoGen, Inc.(Æ) | 149,038 | 1,818 | LHC Group, Inc.(Æ) | 700 | 38 | ||
BioCryst Pharmaceuticals, Inc.(Æ) | 28,884 | 183 | Ligand Pharmaceuticals, Inc. Class B(Æ)(Ñ) | 57,252 | 6,364 | ||
BioTelemetry, Inc.(Æ) | 164,364 | 5,408 | Lion Biotechnologies, Inc.(Æ) | 35,029 | 240 | ||
Bioverativ, Inc.(Æ) | 43,260 | 2,544 | Loxo Oncology, Inc.(Æ) | 8,782 | 404 | ||
Bluebird Bio, Inc.(Æ)(Ñ) | 15,184 | 1,351 | Luminex Corp. | 30,000 | 565 | ||
Blueprint Medicines Corp.(Æ) | 13,783 | 642 | Magellan Health, Inc.(Æ) | 12,700 | 874 | ||
Cambrex Corp.(Æ) | 25,119 | 1,491 | Masimo Corp.(Æ) | 16,538 | 1,699 | ||
Cantel Medical Corp. | 7,977 | 594 | Medidata Solutions, Inc.(Æ) | 10,813 | 707 | ||
Capital Senior Living Corp.(Æ) | 261,526 | 3,654 | Meridian Bioscience, Inc. | 30,718 | 455 | ||
Cardiovascular Systems, Inc.(Æ) | 83,804 | 2,503 | Merit Medical Systems, Inc.(Æ) | 25,828 | 871 | ||
Catalent, Inc.(Æ) | 8,200 | 240 | Momenta Pharmaceuticals, Inc.(Æ) | 23,069 | 331 | ||
Catasys, Inc.(Æ) | 66,540 | 319 | Myriad Genetics, Inc.(Æ)(Ñ) | 48,900 | 899 | ||
Chemed Corp. | 35,228 | 7,095 | NanoString Technologies, Inc.(Æ) | 21,033 | 368 | ||
Corcept Therapeutics, Inc.(Æ) | 33,329 | 318 | National HealthCare Corp. | 10,252 | 763 | ||
CorVel Corp.(Æ) | 66,169 | 2,945 | National Research Corp. Class A | 8,674 | 215 | ||
Cotiviti Holdings, Inc.(Æ) | 51,483 | 2,151 | Nektar Therapeutics(Æ) | 55,661 | 1,056 | ||
Cross Country Healthcare, Inc.(Æ) | 92,837 | 1,297 | Neogen Corp.(Æ) | 20,895 | 1,302 | ||
Cutera, Inc.(Æ) | 8,000 | 156 | NeoGenomics, Inc.(Æ) | 664,746 | 5,019 | ||
Cytokinetics, Inc.(Æ) | 40,312 | 661 | Neos Therapeutics, Inc.(Æ)(Ñ) | 96,120 | 682 | ||
CytomX Therapeutics, Inc.(Æ)(Ñ) | 18,927 | 297 | Nevro Corp.(Æ) | 12,036 | 1,134 | ||
Dynavax Technologies Corp.(Æ)(Ñ) | 119,274 | 662 | NewLink Genetics Corp.(Æ)(Ñ) | 3,200 | 60 | ||
Emergent BioSolutions, Inc.(Æ) | 14,700 | 440 | NuVasive, Inc.(Æ) | 19,088 | 1,384 | ||
Ensign Group, Inc. (The) | 238,886 | 4,288 | Omnicell, Inc.(Æ) | 10,174 | 421 | ||
Epizyme, Inc.(Æ) | 22,325 | 403 | OraSure Technologies, Inc.(Æ) | 33,797 | 443 | ||
Esperion Therapeutics, Inc.(Æ)(Ñ) | 9,371 | 335 | Owens & Minor, Inc. | 20,000 | 693 | ||
Exact Sciences Corp.(Æ) | 24,873 | 746 | Oxford Immunotec Global PLC(Æ) | 57,702 | 888 | ||
Exactech, Inc.(Æ) | 13,362 | 396 | Pacira Pharmaceuticals, Inc.(Æ) | 33,055 | 1,605 | ||
Exelixis, Inc.(Æ) | 59,407 | 1,331 | Paratek Pharmaceuticals, Inc.(Æ) | 23,521 | 505 | ||
FibroGen, Inc.(Æ) | 19,672 | 551 | PAREXEL International Corp.(Æ) | 7,027 | 449 | ||
Five Prime Therapeutics, Inc.(Æ) | 21,433 | 747 | Penumbra, Inc.(Æ)(Ñ) | 31,562 | 2,697 | ||
Flexion Therapeutics, Inc.(Æ) | 10,039 | 205 | PRA Health Sciences, Inc.(Æ) | 48,148 | 3,080 | ||
Fluidigm Corp.(Æ) | 44,758 | 221 | Prestige Brands Holdings, Inc.(Æ) | 81,938 | 4,704 | ||
Glaukos Corp.(Æ) | 58,346 | 2,773 | Prothena Corp. PLC(Æ) | 17,754 | 961 | ||
Globus Medical, Inc. Class A(Æ) | 51,752 | 1,570 | pSivida Corp.(Æ) | 10,600 | 18 | ||
Halozyme Therapeutics, Inc.(Æ)(Ñ) | 62,149 | 866 | PTC Therapeutics, Inc.(Æ)(Ñ) | 9,200 | 112 | ||
HealthSouth Corp. | 121,484 | 5,698 | Quality Systems, Inc.(Æ) | 25,595 | 365 | ||
Healthways, Inc.(Æ) | 10,416 | 350 | Quidel Corp.(Æ) | 6,300 | 152 | ||
Heron Therapeutics, Inc.(Æ)(Ñ) | 36,676 | 563 | REGENXBIO, Inc.(Æ) | 10,469 | 219 | ||
Heska Corp.(Æ) | 34,050 | 3,686 | Repligen Corp.(Æ) | 44,577 | 1,640 | ||
ICU Medical, Inc.(Æ) | 5,505 | 847 | RTI Surgical, Inc.(Æ) | 56,876 | 230 | ||
INC Research Holdings, Inc. Class A(Æ) | 16,097 | 724 | Sage Therapeutics, Inc.(Æ) | 9,371 | 665 |
See accompanying notes which are an integral part of the financial statements.
122 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
SciClone Pharmaceuticals, Inc.(Æ) | 37,965 | 366 | Huttig Building Products, Inc.(Æ) | 194,521 | 1,712 | ||
SeaSpine Holdings Corp.(Æ) | 104,180 | 834 | Innospec, Inc. | 19,108 | 1,261 | ||
Select Medical Holdings Corp.(Æ) | 30,491 | 419 | Interface, Inc. Class A | 153,458 | 3,054 | ||
Spark Therapeutics, Inc.(Æ) | 12,444 | 721 | ITT, Inc. | 114,790 | 4,835 | ||
Spectranetics Corp. (The)(Æ) | 14,746 | 422 | JELD-WEN Holding, Inc.(Æ) | 10,649 | 352 | ||
Steris PLC | 61,901 | 4,568 | KapStone Paper and Packaging Corp. | 10,839 | 229 | ||
Supernus Pharmaceuticals, Inc.(Æ) | 245,863 | 8,015 | Landec Corp.(Æ) | 73,100 | 1,005 | ||
Surmodics, Inc.(Æ) | 12,757 | 291 | Lawson Products, Inc.(Æ) | 5,100 | 116 | ||
Tabula Rasa HealthCare, Inc.(Æ) | 31,000 | 418 | Lennox International, Inc. | 1,900 | 314 | ||
Tandem Diabetes Care, Inc.(Æ)(Ñ) | 286,784 | 273 | Louisiana-Pacific Corp.(Æ) | 20,375 | 524 | ||
TESARO, Inc.(Æ) | 7,865 | 1,161 | LSI Industries, Inc. | 15,130 | 137 | ||
Tetraphase Pharmaceuticals, Inc.(Æ) | 9,800 | 78 | Masonite International Corp.(Æ) | 33,328 | 2,773 | ||
Theravance Biopharma, Inc.(Æ)(Ñ) | 9,662 | 390 | Materion Corp. | 28,514 | 1,085 | ||
Trinity Biotech PLC - ADR(Æ)(Ñ) | 195,200 | 1,111 | Neenah Paper, Inc. | 47,224 | 3,700 | ||
Triple-S Management Corp. Class B(Æ) | 17,600 | 319 | NewMarket Corp. | 7,795 | 3,669 | ||
Ultragenyx Pharmaceutical, Inc.(Æ) | 14,309 | 921 | Northwest Pipe Co.(Æ) | 9,600 | 134 | ||
US Physical Therapy, Inc. | 4,563 | 299 | Olin Corp. | 14,140 | 454 | ||
Utah Medical Products, Inc. | 19,838 | 1,242 | Olympic Steel, Inc. | 14,359 | 324 | ||
Vanda Pharmaceuticals, Inc.(Æ) | 38,871 | 593 | Patrick Industries, Inc.(Æ) | 10,813 | 768 | ||
Varex Imaging Corp.(Æ) | 105,101 | 3,527 | PGT Innovations, Inc.(Æ) | 31,388 | 342 | ||
Veeva Systems, Inc. Class A(Æ) | 43,245 | 2,319 | PolyOne Corp. | 96,264 | 3,775 | ||
Verastem, Inc.(Æ) | 29,692 | 58 | Quaker Chemical Corp. | 31,908 | 4,614 | ||
ViewRay, Inc.(Æ) | 53,683 | 370 | Quanex Building Products Corp. | 63,462 | 1,295 | ||
Vivus, Inc.(Æ)(Ñ) | 85,500 | 86 | RBC Bearings, Inc.(Æ) | 21,054 | 2,112 | ||
Volt Information Sciences, Inc.(Æ) | 2,800 | 18 | Resolute Forest Products, Inc.(Æ) | 77,058 | 482 | ||
VWR Corp.(Æ) | 139,166 | 3,933 | Ryerson Holding Corp.(Æ) | 6,400 | 88 | ||
Wright Medical Group NV(Æ) | 59,068 | 1,795 | Schweitzer-Mauduit International, Inc. | 6,507 | 280 | ||
Xencor, Inc.(Æ) | 31,726 | 814 | Sensient Technologies Corp. | 6,918 | 566 | ||
194,555 | Silgan Holdings, Inc. | 72,703 | 4,407 | ||||
Smart Sand, Inc.(Æ) | 58,094 | 707 | |||||
Materials and Processing - 6.5% | Stepan Co. | 10,068 | 854 | ||||
A Schulman, Inc. | 82,582 | 2,614 | Stillwater Mining Co.(Æ) | 16,110 | 290 | ||
AdvanSix, Inc.(Æ) | 25,000 | 682 | Summit Materials, Inc. Class A(Æ) | 137,060 | 3,517 | ||
AK Steel Holding Corp.(Æ) | 66,209 | 420 | Tronox, Ltd. Class A | 172,824 | 2,853 | ||
Allegheny Technologies, Inc.(Ñ) | 135,789 | 2,492 | UFP Technologies, Inc.(Æ) | 16,916 | 452 | ||
Apogee Enterprises, Inc. | 86,601 | 4,719 | United States Lime & Minerals, Inc. | 2,660 | 210 | ||
Armstrong Flooring, Inc.(Æ) | 280,320 | 5,379 | US Concrete, Inc.(Æ)(Ñ) | 95,292 | 5,908 | ||
Armstrong World Industries, Inc.(Æ) | 90,637 | 4,236 | US Silica Holdings, Inc. | 7,074 | 294 | ||
Aspen Aerogels, Inc.(Æ) | 5,200 | 21 | Valvoline, Inc.(Ñ) | 34,560 | 769 | ||
Atkore International Group, Inc.(Æ) | 50,225 | 1,319 | Veritiv Corp.(Æ) | 9,362 | 484 | ||
Balchem Corp. | 3,894 | 316 | Verso Corp. Class A(Æ) | 203,548 | 1,236 | ||
Belden, Inc. | 7,656 | 534 | Versum Materials, Inc. | 120,196 | 3,849 | ||
Cabot Microelectronics Corp. | 22,606 | 1,771 | Worthington Industries, Inc. | 20,428 | 889 | ||
Carpenter Technology Corp. | 110,139 | 4,470 | 113,216 | ||||
Chemours Co. (The) | 19,248 | 776 | |||||
Clearwater Paper Corp.(Æ) | 4,500 | 219 | Producer Durables - 14.5% | ||||
Cliffs Natural Resources, Inc.(Æ) | 116,975 | 787 | AAR Corp. | 57,066 | 2,054 | ||
Comfort Systems USA, Inc. | 119,792 | 4,395 | ACCO Brands Corp.(Æ) | 235,163 | 3,351 | ||
Compass Minerals International, Inc.(Ñ) | 44,526 | 2,939 | Advanced Energy Industries, Inc.(Æ) | 64,468 | 4,757 | ||
Emerge Energy Services, LP(Æ)(Ñ) | 59,261 | 759 | Advisory Board Co. (The)(Æ) | 23,080 | 1,179 | ||
Ferroglobe PLC | 454,134 | 4,383 | Aerovironment, Inc.(Æ) | 21,633 | 618 | ||
FutureFuel Corp. | 57,078 | 882 | AGCO Corp. | 4,600 | 294 | ||
GCP Applied Technologies, Inc.(Æ) | 11,459 | 377 | Air Transport Services Group, Inc.(Æ) | 204,134 | 3,754 | ||
Global Brass & Copper Holdings, Inc. | 400 | 14 | Aircastle, Ltd. | 10,800 | 255 | ||
HB Fuller Co. | 8,577 | 453 | Allied Motion Technologies, Inc. | 76,685 | 1,736 | ||
Headwaters, Inc.(Æ) | 29,029 | 690 | American Superconductor Corp.(Æ)(Ñ) | 13,799 | 72 | ||
Hi-Crush Partners, LP(Æ)(Ñ) | 17,389 | 246 | ArcBest Corp. | 23,910 | 632 | ||
Huntsman Corp. | 24,372 | 604 | Ardmore Shipping Corp.(Ñ) | 141,800 | 1,099 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 123
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Argan, Inc. | 13,810 | 923 | Kforce, Inc. | 63,156 | 1,433 | ||
Atlas Air Worldwide Holdings, Inc.(Æ) | 15,287 | 887 | Kimball International, Inc. Class B | 89,726 | 1,594 | ||
Babcock & Wilcox Co. (The) Class W(Æ) | 271,484 | 13,349 | KLX, Inc.(Æ) | 27,007 | 1,277 | ||
Babcock & Wilcox Enterprises, Inc.(Æ) | 215,800 | 2,022 | Knight Transportation, Inc. | 13,192 | 452 | ||
Brink's Co. (The) | 50,184 | 3,081 | Korn & Ferry International | 130,035 | 4,213 | ||
CAI International, Inc.(Æ) | 9,800 | 202 | Kornit Digital, Ltd.(Æ)(Ñ) | 189,081 | 3,800 | ||
CBIZ, Inc.(Æ) | 223,710 | 3,523 | Kratos Defense & Security Solutions, Inc.(Æ) | 81,000 | 617 | ||
Celadon Group, Inc.(Ñ) | 285,243 | 1,127 | Liquidity Services, Inc.(Æ) | 38,300 | 299 | ||
Chart Industries, Inc.(Æ) | 25,816 | 943 | Littelfuse, Inc. | 31,257 | 4,818 | ||
Commercial Vehicle Group, Inc.(Æ) | 50,675 | 451 | Manitex International, Inc.(Æ) | 14,400 | 107 | ||
Control4 Corp.(Æ) | 27,430 | 464 | Manitowoc Co., Inc. (The)(Æ) | 241,977 | 1,445 | ||
Convergys Corp. | 37,707 | 849 | ManpowerGroup, Inc. | 5,100 | 515 | ||
Costamare, Inc. | 48,600 | 328 | Marten Transport, Ltd. | 64,400 | 1,598 | ||
Covanta Holding Corp.(Ñ) | 288,289 | 4,195 | MasTec, Inc.(Æ) | 138,455 | 6,113 | ||
Covenant Transportation Group, Inc. Class | MAXIMUS, Inc. | 62,879 | 3,835 | ||||
A(Æ) | 24,153 | 452 | Maxwell Technologies, Inc.(Æ)(Ñ) | 58,995 | 360 | ||
CPI Aerostructures, Inc.(Æ) | 49,779 | 309 | McGrath RentCorp | 78,764 | 2,742 | ||
CRA International, Inc. | 72,890 | 2,765 | Mobile Mini, Inc. | 79,069 | 2,269 | ||
Curtiss-Wright Corp. | 21,109 | 1,973 | Modine Manufacturing Co.(Æ) | 84,768 | 1,026 | ||
Deluxe Corp. | 67,848 | 4,879 | Moog, Inc. Class A(Æ) | 24,893 | 1,709 | ||
DHT Holdings, Inc. | 99,700 | 478 | MYR Group, Inc.(Æ) | 32,080 | 1,356 | ||
Ducommun, Inc.(Æ) | 16,300 | 479 | Navios Maritime Acquisition Corp. | 41,879 | 71 | ||
DXP Enterprises, Inc.(Æ) | 62,094 | 2,265 | Navistar International Corp.(Æ) | 18,400 | 495 | ||
Dycom Industries, Inc.(Æ) | 43,519 | 4,598 | Neff Corp. Class A(Æ) | 2,300 | 40 | ||
Echo Global Logistics, Inc.(Æ) | 32,550 | 610 | NV5 Global, Inc.(Æ) | 65,077 | 2,518 | ||
EMCOR Group, Inc. | 34,700 | 2,281 | Old Dominion Freight Line, Inc. | 25,298 | 2,239 | ||
EnerSys | 14,700 | 1,222 | On Assignment, Inc.(Æ) | 66,394 | 3,437 | ||
Engility Holdings, Inc.(Æ) | 26,400 | 748 | Orion Group Holdings, Inc.(Æ) | 308,086 | 2,326 | ||
Essendant, Inc.(Æ) | 74,169 | 1,239 | PAM Transportation Services, Inc.(Æ) | 12,169 | 228 | ||
Exponent, Inc. | 53,255 | 3,257 | Park-Ohio Holdings Corp. | 3,881 | 153 | ||
Flir Systems, Inc. | 92,063 | 3,381 | Powell Industries, Inc. | 12,614 | 435 | ||
Forward Air Corp. | 36,355 | 1,933 | Primoris Services Corp. | 98,497 | 2,262 | ||
FreightCar America, Inc. | 153,200 | 2,001 | Quad/Graphics, Inc. | 24,953 | 655 | ||
GasLog, Ltd.(Ñ) | 24,000 | 336 | Quanta Services, Inc.(Æ) | 76,972 | 2,728 | ||
Generac Holdings, Inc.(Æ) | 27,000 | 950 | Radiant Logistics, Inc.(Æ) | 17,600 | 106 | ||
Genesee & Wyoming, Inc. Class A(Æ) | 25,397 | 1,721 | Ritchie Bros Auctioneers, Inc.(Ñ) | 127,478 | 4,176 | ||
GP Strategies Corp.(Æ) | 44,620 | 1,209 | RPX Corp. Class A(Æ) | 47,222 | 606 | ||
Graham Corp. | 49,249 | 1,087 | RR Donnelley & Sons Co. | 64,686 | 813 | ||
Granite Construction, Inc. | 79,087 | 4,169 | Rush Enterprises, Inc. Class A(Æ) | 19,600 | 740 | ||
Great Lakes Dredge & Dock Corp.(Æ) | 652,200 | 2,968 | Ryder System, Inc. | 49,268 | 3,346 | ||
H&E Equipment Services, Inc. | 22,404 | 473 | Scorpio Tankers, Inc. | 623,200 | 2,742 | ||
Harsco Corp.(Æ) | 71,309 | 931 | Ship Finance International, Ltd.(Ñ) | 29,681 | 417 | ||
Healthcare Services Group, Inc. | 107,171 | 4,920 | SkyWest, Inc. | 89,716 | 3,337 | ||
HEICO Corp. | 86,569 | 6,153 | Solazyme, Inc.(Æ)(Ñ) | 84,749 | 40 | ||
Heidrick & Struggles International, Inc. | 21,400 | 460 | SP Plus Corp.(Æ) | 6,730 | 232 | ||
Herman Miller, Inc. | 123,343 | 4,083 | Spartan Motors, Inc. | 27,639 | 228 | ||
Hub Group, Inc. Class A(Æ) | 20,790 | 814 | Spirit Airlines, Inc.(Æ) | 9,500 | 544 | ||
Hudson Technologies, Inc.(Æ) | 369,706 | 2,625 | SPX Corp.(Æ) | 20,600 | 496 | ||
Hyster-Yale Materials Handling, Inc. | 24,060 | 1,446 | SPX FLOW, Inc.(Æ) | 20,449 | 739 | ||
ICF International, Inc.(Æ) | 34,230 | 1,511 | Square, Inc. Class A(Æ) | 138,067 | 2,518 | ||
Information Services Group, Inc.(Æ) | 621,097 | 1,956 | Standex International Corp. | 17,582 | 1,652 | ||
InnerWorkings, Inc.(Æ) | 410,719 | 4,349 | StealthGas, Inc.(Å)(Æ) | 213,920 | 732 | ||
Insperity, Inc. | 9,461 | 864 | Sun Hydraulics Corp. | 11,141 | 433 | ||
John Bean Technologies Corp. | 28,264 | 2,506 | SuperCom, Ltd.(Å)(Æ)(Ñ) | 130,863 | 352 | ||
Kaman Corp. Class A | 23,630 | 1,134 | Swift Transportation Co. Class A(Æ)(Ñ) | 62,246 | 1,530 | ||
KBR, Inc. | 493,815 | 6,939 | Sykes Enterprises, Inc.(Æ) | 49,748 | 1,483 | ||
Kelly Services, Inc. Class A | 50,237 | 1,121 | Team, Inc.(Æ) | 101,579 | 2,733 | ||
Kennametal, Inc. | 26,119 | 1,086 | Teledyne Technologies, Inc.(Æ) | 9,050 | 1,220 |
See accompanying notes which are an integral part of the financial statements.
124 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Tennant Co. | 5,000 | 366 | CSG Systems International, Inc. | 3,514 | 132 | ||
Terex Corp. | 85,673 | 2,997 | CTS Corp. | 94,521 | 2,089 | ||
Textainer Group Holdings, Ltd.(Æ)(Ñ) | 24,044 | 359 | Daktronics, Inc. | 44,400 | 420 | ||
Titan Machinery, Inc.(Æ) | 112,270 | 1,779 | Diebold Nixdorf, Inc. | 254,694 | 7,181 | ||
TopBuild Corp.(Æ) | 9,764 | 500 | Digi International, Inc.(Æ) | 46,525 | 577 | ||
Triumph Group, Inc. | 39,400 | 1,032 | Digimarc Corp.(Æ)(Ñ) | 11,850 | 342 | ||
TrueBlue, Inc.(Æ) | 26,639 | 729 | Diodes, Inc.(Æ) | 8,400 | 196 | ||
Tutor Perini Corp.(Æ) | 182,652 | 5,636 | DSP Group, Inc.(Æ) | 26,900 | 335 | ||
USA Truck, Inc.(Æ) | 2,262 | 15 | Ebix, Inc. | 3,305 | 204 | ||
Vectrus, Inc.(Æ) | 17,669 | 449 | Electro Scientific Industries, Inc.(Æ) | 61,434 | 429 | ||
WageWorks, Inc.(Æ) | 41,689 | 3,077 | Ellie Mae, Inc.(Æ) | 6,694 | 681 | ||
Welbilt, Inc.(Æ) | 69,831 | 1,432 | EMCORE Corp. | 11,294 | 102 | ||
WESCO International, Inc.(Æ) | 1,900 | 116 | EPAM Systems, Inc.(Æ) | 5,918 | 456 | ||
251,693 | ePlus, Inc.(Æ) | 9,234 | 658 | ||||
Evolent Health, Inc. Class A(Æ)(Ñ) | 141,148 | 3,282 | |||||
Technology - 15.0% | Exar Corp.(Æ) | 152,851 | 1,988 | ||||
3D Systems Corp.(Æ)(Ñ) | 16,372 | 259 | Extreme Networks, Inc.(Æ) | 97,903 | 765 | ||
Acacia Communications, Inc.(Æ)(Ñ) | 17,900 | 821 | Finisar Corp.(Æ) | 134,557 | 3,074 | ||
ACI Worldwide, Inc.(Æ) | 52,740 | 1,133 | FireEye, Inc.(Æ)(Ñ) | 333,019 | 4,166 | ||
Acxiom Corp.(Æ) | 176,530 | 5,102 | Five9, Inc.(Æ) | 616,225 | 11,242 | ||
ADTRAN, Inc. | 155,308 | 3,106 | Glu Mobile, Inc.(Æ)(Ñ) | 71,400 | 165 | ||
Advanced Micro Devices, Inc.(Æ)(Ñ) | 55,770 | 742 | GrubHub, Inc.(Æ) | 40,064 | 1,722 | ||
Aerohive Networks, Inc.(Æ)(Ñ) | 422,027 | 1,633 | GTT Communications, Inc.(Æ) | 65,480 | 1,801 | ||
Agilysys, Inc.(Æ) | 9,971 | 99 | Guidance Software, Inc.(Æ) | 10,276 | 62 | ||
Alarm.com Holdings, Inc.(Æ) | 47,314 | 1,543 | Harmonic, Inc.(Æ) | 278,138 | 1,613 | ||
Ambarella, Inc.(Æ)(Ñ) | 23,590 | 1,326 | Hortonworks, Inc.(Æ)(Ñ) | 232,871 | 2,424 | ||
Amtech Systems, Inc.(Æ) | 1,905 | 13 | HubSpot, Inc.(Æ) | 9,499 | 637 | ||
Anixter International, Inc.(Æ) | 7,792 | 635 | IAC InterActive Corp(Æ) | 16,650 | 1,382 | ||
Applied Optoelectronics, Inc.(Æ)(Ñ) | 26,490 | 1,308 | Ichor Holdings, Ltd.(Æ) | 53,163 | 1,031 | ||
ARC Document Solutions, Inc.(Æ) | 283,665 | 1,044 | Immersion Corp.(Æ) | 54,590 | 479 | ||
Aspen Technology, Inc.(Æ) | 25,902 | 1,593 | Insight Enterprises, Inc.(Æ) | 30,900 | 1,301 | ||
Asure Software, Inc.(Æ) | 45,773 | 473 | InterDigital, Inc. | 3,265 | 294 | ||
Autobytel, Inc.(Æ) | 78,157 | 1,025 | InterXion Holding NV(Æ) | 12,951 | 540 | ||
Avid Technology, Inc.(Æ) | 92,270 | 517 | iRobot Corp.(Æ) | 34,876 | 2,781 | ||
Axcelis Technologies, Inc.(Æ) | 52,986 | 1,020 | Jive Software, Inc.(Æ) | 19,700 | 99 | ||
Bankrate, Inc.(Æ) | 53,324 | 565 | KEYW Holding Corp. (The)(Æ)(Ñ) | 169,700 | 1,610 | ||
Bazaarvoice, Inc.(Æ) | 520,244 | 2,446 | Kimball Electronics, Inc.(Æ) | 89,834 | 1,550 | ||
Bel Fuse, Inc. Class B | 17,787 | 430 | KVH Industries, Inc.(Æ) | 11,511 | 92 | ||
Benchmark Electronics, Inc.(Æ) | 72,533 | 2,300 | Leidos Holdings, Inc. | 53,242 | 2,804 | ||
Blackline, Inc.(Æ)(Ñ) | 36,596 | 1,203 | Liberty Expedia Holdings, Inc. Class A(Æ) | 43,855 | 2,119 | ||
Blucora, Inc.(Æ) | 23,381 | 431 | Liberty Interactive Corp.(Æ) | 111,475 | 6,002 | ||
Brightcove, Inc.(Æ) | 8,000 | 70 | Limelight Networks, Inc.(Æ) | 48,271 | 152 | ||
Brooks Automation, Inc. | 14,755 | 373 | LogMeIn, Inc. | 8,431 | 953 | ||
CACI International, Inc. Class A(Æ) | 5,570 | 657 | Lumentum Holdings, Inc.(Æ) | 93,767 | 4,009 | ||
CalAmp Corp.(Æ) | 320,447 | 5,749 | ManTech International Corp. Class A | 34,072 | 1,210 | ||
Calix, Inc.(Æ) | 65,714 | 440 | Marin Software, Inc.(Æ) | 27,124 | 46 | ||
Callidus Software, Inc.(Æ) | 356,596 | 7,505 | Match Group, Inc.(Æ)(Ñ) | 31,280 | 583 | ||
Carbonite, Inc.(Æ) | 275,898 | 5,960 | Mercury Systems, Inc.(Æ) | 51,564 | 1,928 | ||
Cavium, Inc.(Æ) | 68,747 | 4,733 | Methode Electronics, Inc. | 29,662 | 1,321 | ||
CEVA, Inc.(Æ) | 59,749 | 2,151 | MicroStrategy, Inc. Class A(Æ) | 5,720 | 1,088 | ||
Ciena Corp.(Æ) | 24,333 | 557 | Mindbody Inc. Class A(Æ)(Ñ) | 18,217 | 516 | ||
Cirrus Logic, Inc.(Æ) | 7,900 | 508 | MobileIron, Inc.(Æ) | 47,634 | 217 | ||
Cognex Corp. | 43,945 | 3,750 | Model N, Inc.(Æ) | 52,407 | 561 | ||
Coherent, Inc.(Æ) | 29,195 | 6,293 | Nanometrics, Inc.(Æ) | 8,873 | 280 | ||
Cohu, Inc. | 79,159 | 1,483 | NCI, Inc. Class A(Æ) | 3,000 | 45 | ||
CommerceHub, Inc.(Æ) | 223,522 | 3,562 | NeuStar, Inc. Class A(Æ) | 17,135 | 569 | ||
Conduent, Inc.(Æ) | 199,780 | 3,258 | NIC, Inc. | 140,880 | 3,008 | ||
Cornerstone OnDemand, Inc.(Æ) | 91,929 | 3,611 | Nice, Ltd. - ADR | 5,353 | 361 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 125
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Oclaro, Inc.(Æ)(Ñ) | 29,499 | 236 | Zynga, Inc. Class A(Æ) | 365,200 | 1,055 | ||
Ooma, Inc.(Æ) | 255,938 | 3,059 | 259,389 | ||||
Orbotech, Ltd.(Æ) | 67,881 | 2,235 | |||||
Paycom Software, Inc.(Æ)(Ñ) | 5,208 | 314 | Utilities - 3.7% | ||||
PC Connection, Inc. | 38,048 | 1,094 | 8x8, Inc.(Æ) | 89,332 | 1,300 | ||
PC-Telephone, Inc. | 7,100 | 55 | Algonquin Power & Utilities Corp. | 184,874 | 1,749 | ||
PDF Solutions, Inc.(Æ) | 391,469 | 7,446 | ALLETE, Inc. | 22,500 | 1,573 | ||
Perceptron, Inc.(Æ) | 8,100 | 69 | American States Water Co. | 89,480 | 3,984 | ||
Perficient, Inc.(Æ) | 57,153 | 996 | Avista Corp. | 8,015 | 323 | ||
Photronics, Inc.(Æ) | 61,831 | 711 | Black Hills Corp. | 6,136 | 417 | ||
Plexus Corp.(Æ) | 12,222 | 635 | Boingo Wireless, Inc.(Æ) | 408,225 | 5,834 | ||
Power Integrations, Inc. | 59,615 | 3,932 | Chesapeake Utilities Corp. | 11,100 | 814 | ||
Progress Software Corp. | 16,000 | 476 | Cogent Communications Holdings, Inc. | 55,639 | 2,504 | ||
Proofpoint, Inc.(Æ) | 39,623 | 2,986 | Comstock Resources, Inc.(Æ)(Ñ) | 48,105 | 420 | ||
Q2 Holdings, Inc.(Æ) | 70,707 | 2,698 | Dynegy, Inc. Class A(Æ) | 92,735 | 595 | ||
QAD, Inc. Class A | 49,941 | 1,508 | El Paso Electric Co. | 25,393 | 1,310 | ||
Quantum Corp.(Æ) | 78,747 | 624 | Extraction Oil & Gas, Inc.(Æ) | 71,200 | 1,114 | ||
RADCOM, Ltd.(Æ)(Ñ) | 87,604 | 1,673 | Gogo, Inc.(Æ)(Ñ) | 58,245 | 734 | ||
Radisys Corp.(Æ) | 41,808 | 168 | Hawaiian Telcom Holdco, Inc.(Æ) | 4,700 | 120 | ||
Rambus, Inc.(Æ) | 83,350 | 1,044 | Idacorp, Inc. | 4,640 | 392 | ||
RealPage, Inc.(Æ) | 106,639 | 3,951 | j2 Global, Inc. | 75,009 | 6,769 | ||
Revolution Lighting Technologies, Inc.(Æ) | 43,626 | 386 | Midstates Petroleum Co., Inc.(Æ) | 83,560 | 1,551 | ||
Rudolph Technologies, Inc.(Æ) | 35,309 | 865 | NCS Multistage Holdings, Inc.(Æ) | 41,400 | 828 | ||
Sanmina Corp.(Æ) | 42,392 | 1,579 | New Jersey Resources Corp. | 16,696 | 674 | ||
ScanSource, Inc.(Æ) | 46,095 | 1,820 | Northwest Natural Gas Co. | 29,018 | 1,729 | ||
Science Applications International Corp. | 20,719 | 1,512 | NorthWestern Corp. | 32,871 | 1,965 | ||
Seachange International, Inc.(Æ) | 27,400 | 69 | NRG Yield, Inc. Class C | 37,139 | 657 | ||
Semtech Corp.(Æ) | 10,326 | 353 | NRG Yield, Inc. Class A | 204,376 | 3,544 | ||
Shopify, Inc. Class A(Æ)(Ñ) | 36,648 | 2,783 | ONE Gas, Inc. | 17,000 | 1,170 | ||
ShoreTel, Inc.(Æ) | 78,290 | 513 | Ormat Technologies, Inc. | 12,423 | 734 | ||
Sigma Designs, Inc.(Æ) | 70,672 | 438 | Otter Tail Corp. | 13,154 | 520 | ||
Silicom, Ltd. | 9,063 | 491 | PNM Resources, Inc. | 74,952 | 2,792 | ||
Silicon Laboratories, Inc.(Æ) | 16,530 | 1,176 | Portland General Electric Co. | 66,511 | 3,015 | ||
Silicon Motion Technology Corp. - ADR | 20,220 | 982 | Pure Cycle Corp.(Å)(Æ) | 186,300 | 1,295 | ||
Silver Spring Networks, Inc.(Æ) | 8,900 | 102 | Resolute Energy Corp.(Æ)(Ñ) | 24,505 | 918 | ||
Sonus Networks, Inc.(Æ) | 100,337 | 771 | RingCentral, Inc. Class A(Æ) | 86,948 | 2,778 | ||
Stratasys, Ltd.(Æ)(Ñ) | 27,100 | 671 | South Jersey Industries, Inc. | 83,007 | 3,115 | ||
Super Micro Computer, Inc.(Æ) | 39,725 | 970 | Southwest Gas Holdings, Inc. | 8,222 | 689 | ||
Synaptics, Inc.(Æ) | 4,640 | 254 | Spire, Inc. | 5,156 | 353 | ||
SYNNEX Corp. | 25,087 | 2,720 | Spok Holdings, Inc. | 17,843 | 320 | ||
Tech Data Corp.(Æ) | 34,786 | 3,327 | US Cellular Corp.(Æ) | 7,050 | 276 | ||
TeleNav, Inc.(Æ) | 107,667 | 937 | Vistra Energy Corp. | 304,927 | 4,559 | ||
Tremor Video, Inc.(Æ) | 27,550 | 62 | West Corp. | 12,100 | 323 | ||
TrueCar, Inc.(Æ)(Ñ) | 341,734 | 5,986 | WGL Holdings, Inc. | 8,266 | 682 | ||
TTM Technologies, Inc.(Æ) | 132,779 | 2,221 | |||||
Twilio, Inc. Class A(Æ) | 41,043 | 1,356 | 64,439 | ||||
Tyler Technologies, Inc.(Æ) | 3,127 | 512 | |||||
Ultra Clean Holdings(Æ) | 45,055 | 867 | Total Common Stocks | ||||
Universal Display Corp. | 9,109 | 814 | (cost $1,339,654) | 1,624,734 | |||
Varonis Systems, Inc.(Æ) | 113,432 | 3,562 | |||||
Veeco Instruments, Inc.(Æ) | 19,414 | 641 | Investments in Other Funds - 0.1% | ||||
Viavi Solutions, Inc. Class W(Æ) | 309,621 | 3,096 | Financial Services - 0.1% | ||||
Vocera Communications, Inc.(Æ) | 82,529 | 2,093 | SPDR S&P Biotech ETF | 28,989 | 2,071 | ||
Wix.com, Ltd.(Æ) | 51,348 | 4,234 | Total Investments in Other Funds | ||||
Xcerra Corp.(Æ) | 40,300 | 395 | (cost $1,979) | 2,071 | |||
Xperi Corp. | 201,339 | 6,765 | |||||
Warrants & Rights - 0.0% | |||||||
TETRA Technologies, Inc.(Æ) |
See accompanying notes which are an integral part of the financial statements.
126 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||
Principal | Fair | |||||
Amount ($) or | Value | |||||
Shares | $ | |||||
2021 Warrants | 81,900 | 78 | ||||
Total Warrants & Rights | ||||||
(cost $12) | 78 | |||||
Short-Term Investments - 6.5% | ||||||
U.S. Cash Management Fund | 108,223,179(8) | 108,244 | ||||
United States Treasury Bills | ||||||
0.500% due 05/11/17 (~)(§) | 600 | 600 | ||||
0.480% due 05/25/17 (~)(§) | 3,200 | 3,199 | ||||
Total Short-Term Investments | ||||||
(cost $112,039) | 112,043 | |||||
Other Securities - 8.0% | ||||||
U.S. Cash Collateral Fund(×) | 137,934,264(8) | 137,934 | ||||
Total Other Securities | ||||||
(cost $137,934) | 137,934 | |||||
Total Investments 108.3% | ||||||
(identified cost $1,591,618) | 1,876,860 | |||||
Other Assets and Liabilities, Net | ||||||
- | (8.3%) | (143,715 | ) | |||
Net Assets - 100.0% | 1,733,145 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 127
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities | ||||||||||||
Amounts in thousands (except share and cost per unit amounts) | ||||||||||||
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.3% | ||||||||||||
Avadel Pharmaceuticals PLC | 01/03/17 | 283,349 | 12.57 | 3,561 | 2,689 | |||||||
Pure Cycle Corp. | 09/10/13 | 186,300 | 4.96 | 925 | 1,295 | |||||||
StealthGas, Inc. | 03/11/15 | 213,920 | 5.29 | 1,132 | 732 | |||||||
SuperCom, Ltd. | 06/18/15 | 130,863 | 7.84 | 1,026 | 352 | |||||||
5,068 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | ||||||
Amounts in thousands (except contract amounts) | ||||||
Unrealized | ||||||
Appreciation | ||||||
Number of | Notional | Expiration | (Depreciation) | |||
Contracts | Amount | Date | $ | |||
Long Positions | ||||||
Russell 2000 Mini Index Futures | 1,041 | USD | 72,787 | 06/17 | 1,164 | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 1,164 |
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | $ | 205,363 | $ | — | $ | — | $ | — | $ | 205,363 | 11.9 | |||||||
Consumer Staples | 55,191 | — | — | — | 55,191 | 3.2 | ||||||||||||
Energy | 57,615 | — | — | — | 57,615 | 3.3 | ||||||||||||
Financial Services | 423,273 | — | — | — | 423,273 | 24.4 | ||||||||||||
Health Care | 194,555 | — | — | — | 194,555 | 11.2 | ||||||||||||
Materials and Processing | 113,216 | — | — | — | 113,216 | 6.5 | ||||||||||||
Producer Durables | 251,693 | — | — | — | 251,693 | 14.5 | ||||||||||||
Technology | 259,389 | — | — | — | 259,389 | 15.0 | ||||||||||||
Utilities | 64,439 | — | — | — | 64,439 | 3.7 | ||||||||||||
Investments in Other Funds | 2,071 | — | — | — | 2,071 | 0.1 | ||||||||||||
Warrants & Rights | — | — | 78 | — | 78 | —* | ||||||||||||
Short-Term Investments | — | 3,799 | — | 108,244 | 112,043 | 6.5 | ||||||||||||
Other Securities | — | — | — | 137,934 | 137,934 | 8.0 | ||||||||||||
Total Investments | 1,626,805 | 3,799 | 78 | 246,178 | 1,876,860 | 108.3 | ||||||||||||
Other Assets and Liabilities, Net | (8.3 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 1,164 | — | — | — | 1,164 | 0.1 | ||||||||||||
A | ||||||||||||||||||
Total Other Financial Instruments** | $ | 1,164 | $ | — | $ | — | $ | — | $ | 1,164 |
See accompanying notes which are an integral part of the financial statements.
128 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||
Amounts in thousands | ||||||
Fair Value | ||||||
Practical | ||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 129
Russell Investment Company
U.S. Small Cap Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 1,164 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 7,573 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 3,907 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
130 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||
Gross | Net Amounts | |||||||
Amounts | of Assets | |||||||
Gross | Offset in the | Presented in | ||||||
Amounts of | Statement of | the Statement | ||||||
Recognized | Assets and | of Assets and | ||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||
Securities on Loan* | Investments, at fair value | $ | 131,602 | $ | — | $ | 131,602 | |
Total Financial and Derivative Assets | 131,602 | — | 131,602 | |||||
Financial and Derivative Assets not subject to a netting agreement | — | — | — | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 131,602 | $ | — | $ | 131,602 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Assets | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||
Barclays | $ | 7,314 | $ | — | $ | 7,314 | $ | — | ||
Citigroup | 24,731 | — | 24,731 | — | ||||||
Credit Suisse | 2,972 | — | 2,972 | — | ||||||
Deutsche Bank | 2,187 | — | 2,187 | — | ||||||
Goldman Sachs | 15,173 | — | 15,173 | — | ||||||
HSBC | 15,555 | — | 15,555 | — | ||||||
JPMorgan Chase | 4,349 | — | 4,349 | — | ||||||
Merrill Lynch | 50,252 | — | 50,252 | — | ||||||
Societe Generale | 9,069 | — | 9,069 | — | ||||||
Total | $ | 131,602 | $ | — | $ | 131,602 | $ | — |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 131
Russell Investment Company
U.S. Small Cap Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 1,077 | $ | — | $ | 1,077 | ||
Total Financial and Derivative Liabilities | 1,077 | — | 1,077 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (1,077 | ) | — | (1,077 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — | $ | — |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
132 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 1,591,618 |
Investments, at fair value(*)(>) | 1,876,860 | |
Cash | 89 | |
Receivables: | ||
Dividends and interest | 374 | |
Dividends from affiliated funds | 60 | |
Investments sold | 49,929 | |
Fund shares sold | 1,363 | |
Prepaid expenses | 15 | |
Total assets | 1,928,690 | |
Liabilities | ||
Payables: | ||
Investments purchased | 53,758 | |
Fund shares redeemed | 1,029 | |
Accrued fees to affiliates | 1,279 | |
Other accrued expenses | 468 | |
Variation margin on futures contracts | 1,077 | |
Payable upon return of securities loaned | 137,934 | |
Total liabilities | 195,545 | |
Net Assets | $ | 1,733,145 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 133
Russell Investment Company
U.S. Small Cap Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (2,579 | ) |
Accumulated net realized gain (loss) | 120,324 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 285,242 | ||
Futures contracts | 1,164 | ||
Shares of beneficial interest | 539 | ||
Additional paid-in capital | 1,328,455 | ||
Net Assets | $ | 1,733,145 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 31.90 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 33.85 | |
Class A — Net assets | $ | 18,748,134 | |
Class A — Shares outstanding ($.01 par value) | 587,710 | ||
Net asset value per share: Class C(#) | $ | 30.33 | |
Class C — Net assets | $ | 22,912,780 | |
Class C — Shares outstanding ($.01 par value) | 755,471 | ||
Net asset value per share: Class E(#) | $ | 32.07 | |
Class E — Net assets | $ | 3,684,070 | |
Class E — Shares outstanding ($.01 par value) | 114,881 | ||
Net asset value per share: Class I(#) | $ | 32.33 | |
Class I — Net assets | $ | 123,309,886 | |
Class I — Shares outstanding ($.01 par value) | 3,813,828 | ||
Net asset value per share: Class R6(#) | $ | 32.19 | |
Class R6 — Net assets | $ | 2,694,463 | |
Class R6 — Shares outstanding ($.01 par value) | 83,714 | ||
Net asset value per share: Class S(#) | $ | 32.17 | |
Class S — Net assets | $ | 1,162,849,480 | |
Class S — Shares outstanding ($.01 par value) | 36,143,273 | ||
Net asset value per share: Class T(#) | $ | 32.17 | |
Class T — Net assets | $ | 1,526,927 | |
Class T — Shares outstanding ($.01 par value) | 47,459 | ||
Net asset value per share: Class Y(#) | $ | 32.19 | |
Class Y — Net assets | $ | 397,418,871 | |
Class Y — Shares outstanding ($.01 par value) | 12,346,283 | ||
Amounts in thousands | |||
(*) Securities on loan included in investments | $ | 131,602 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 246,178 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
134 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 9,338 | |
Dividends from affiliated funds | 305 | ||
Interest | 10 | ||
Securities lending income (net) | 468 | ||
Securities lending income from affiliated funds (net) | 379 | ||
Total investment income | 10,500 | ||
Expenses | |||
Advisory fees | 6,302 | ||
Administrative fees | 435 | ||
Custodian fees | 208 | ||
Distribution fees - Class A | 26 | ||
Distribution fees - Class C | 90 | ||
Transfer agent fees - Class A | 21 | ||
Transfer agent fees - Class C | 24 | ||
Transfer agent fees - Class E | 14 | ||
Transfer agent fees - Class I | 111 | ||
Transfer agent fees - Class R6 | —** | ||
Transfer agent fees - Class S | 1,187 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 9 | ||
Professional fees | 59 | ||
Registration fees | 71 | ||
Shareholder servicing fees - Class C | 30 | ||
Shareholder servicing fees - Class E | 17 | ||
Trustees’ fees | 30 | ||
Printing fees | 135 | ||
Miscellaneous | 15 | ||
Expenses before reductions | 8,784 | ||
Expense reductions | (88 | ) | |
Net expenses | 8,696 | ||
Net investment income (loss) | 1,804 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 143,766 | ||
Futures contracts | 7,573 | ||
Net realized gain (loss) | 151,339 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 131,487 | ||
Futures contracts | 3,907 | ||
Net change in unrealized appreciation (depreciation) | 135,394 | ||
Net realized and unrealized gain (loss) | 286,733 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 288,537 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 135
Russell Investment Company
U.S. Small Cap Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 1,804 | $ | 12,020 | ||
Net realized gain (loss) | 151,339 | 3,616 | ||||
Net change in unrealized appreciation (depreciation) | 135,394 | 56,756 | ||||
Net increase (decrease) in net assets from operations | 288,537 | 72,392 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (63 | ) | (100 | ) | ||
Class C | —** | —** | ||||
Class E | (60 | ) | (125 | ) | ||
Class I | (930 | ) | (1,284 | ) | ||
Class R6 | (3 | ) | — | |||
Class S | (5,911 | ) | (8,818 | ) | ||
Class Y | (2,657 | ) | (4,165 | ) | ||
From net realized gain | ||||||
Class A | (48 | ) | (1,532 | ) | ||
Class C | (54 | ) | (1,864 | ) | ||
Class E | (56 | ) | (2,105 | ) | ||
Class I | (334 | ) | (10,846 | ) | ||
Class R6 | (1 | ) | — | |||
Class S | (2,479 | ) | (87,215 | ) | ||
Class Y | (805 | ) | (30,120 | ) | ||
Net decrease in net assets from distributions | (13,401 | ) | (148,174 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (232,393 | ) | (304,068 | ) | ||
Total Net Increase (Decrease) in Net Assets | 42,743 | (379,850 | ) | |||
Net Assets | ||||||
Beginning of period | 1,690,402 | 2,070,252 | ||||
End of period | $ | 1,733,145 | $ | 1,690,402 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (2,579 | ) | $ | 5,241 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
136 U.S. Small Cap Equity Fund
Russell Investment Company
U.S. Small Cap Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 32 | $ | 985 | 59 | $ | 1,581 | ||||||
Proceeds from reinvestment of distributions | 3 | 110 | 63 | 1,614 | ||||||||
Payments for shares redeemed | (200 | ) | (6,236 | ) | (196 | ) | (5,087 | ) | ||||
Net increase (decrease) | (165 | ) | (5,141 | ) | (74 | ) | (1,892 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 20 | 609 | 38 | 963 | ||||||||
Proceeds from reinvestment of distributions | 2 | 54 | 76 | 1,852 | ||||||||
Payments for shares redeemed | (130 | ) | (3,853 | ) | (275 | ) | (6,875 | ) | ||||
Net increase (decrease) | (108 | ) | (3,190 | ) | (161 | ) | (4,060 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 37 | 1,141 | 111 | 2,874 | ||||||||
Proceeds from reinvestment of distributions | 4 | 112 | 83 | 2,132 | ||||||||
Payments for shares redeemed | (806 | ) | (25,089 | ) | (456 | ) | (12,375 | ) | ||||
Net increase (decrease) | (765 | ) | (23,836 | ) | (262 | ) | (7,369 | ) | ||||
Class I | ||||||||||||
Proceeds from shares sold | 237 | 7,475 | 837 | 21,825 | ||||||||
Proceeds from reinvestment of distributions | 39 | 1,235 | 461 | 11,869 | ||||||||
Payments for shares redeemed | (1,824 | ) | (57,826 | ) | (1,995 | ) | (53,194 | ) | ||||
Net increase (decrease) | (1,548 | ) | (49,116 | ) | (697 | ) | (19,500 | ) | ||||
Class R6(1) | ||||||||||||
Proceeds from shares sold | 70 | 2,187 | 17 | 444 | ||||||||
Proceeds from reinvestment of distributions | — | 4 | — | — | ||||||||
Payments for shares redeemed | (1 | ) | (21 | ) | (2 | ) | (75 | ) | ||||
Net increase (decrease) | 69 | 2,170 | 15 | 369 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 4,264 | 133,188 | 7,389 | 197,236 | ||||||||
Proceeds from reinvestment of distributions | 264 | 8,330 | 3,721 | 95,360 | ||||||||
Payments for shares redeemed | (7,689 | ) | (240,858 | ) | (18,521 | ) | (493,294 | ) | ||||
Net increase (decrease) | (3,161 | ) | (99,340 | ) | (7,411 | ) | (200,698 | ) | ||||
Class T(2) | ||||||||||||
Proceeds from shares sold | 48 | 1,510 | — | — | ||||||||
Payments for shares redeemed | — | (3 | ) | — | — | |||||||
Net increase (decrease) | 48 | 1,507 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 434 | 13,929 | 397 | 10,136 | ||||||||
Proceeds from reinvestment of distributions | 110 | 3,462 | 1,338 | 34,285 | ||||||||
Payments for shares redeemed | (2,339 | ) | (72,838 | ) | (4,243 | ) | (115,339 | ) | ||||
Net increase (decrease) | (1,795 | ) | (55,447 | ) | (2,508 | ) | (70,918 | ) | ||||
Total increase (decrease) | (7,425 | ) | $ | (232,393 | ) | (11,098 | ) | $ | (304,068 | ) | ||
(1) For the period March 1, 2016 (commencement of operations) to October 31, 2016. | ||||||||||||
(2) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 137
Russell Investment Company
U.S. Small Cap Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||||
Period | Income (Loss)(a) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||||
Class A | ||||||||||||||||||
April 30, 2017* | 27.32 | (.01 | ) | 4.74 | 4.73 | (.09 | ) | (.06 | ) | |||||||||
October 31, 2016 | 28.33 | .10 | .88 | .98 | (.12 | ) | (1.87 | ) | ||||||||||
October 31, 2015 | 30.93 | .06 | (.50 | ) | (.44 | ) | (.02 | ) | (2.14 | ) | ||||||||
October 31, 2014 | 33.31 | .04 | 2.13 | 2.17 | (.05 | ) | (4.50 | ) | ||||||||||
October 31, 2013 | 23.77 | .16 | 9.55 | 9.71 | (.17 | ) | — | |||||||||||
October 31, 2012 | 21.67 | .05 | 2.06 | 2.11 | (.01 | ) | — | |||||||||||
Class C | ||||||||||||||||||
April 30, 2017* | 26.00 | (.12 | ) | 4.51 | 4.39 | — | (.06 | ) | ||||||||||
October 31, 2016 | 27.13 | (.10 | ) | .84 | .74 | — | (1.87 | ) | ||||||||||
October 31, 2015 | 29.89 | (.16 | ) | (.46 | ) | (.62 | ) | — | (2.14 | ) | ||||||||
October 31, 2014 | 32.51 | (.20 | ) | 2.08 | 1.88 | — | (4.50 | ) | ||||||||||
October 31, 2013 | 23.22 | (.04 | ) | 9.33 | 9.29 | — | — | |||||||||||
October 31, 2012 | 21.32 | (.12 | ) | 2.02 | 1.90 | — | — | |||||||||||
Class E | ||||||||||||||||||
April 30, 2017* | 27.45 | .03 | 4.72 | 4.75 | (.07 | ) | (.06 | ) | ||||||||||
October 31, 2016 | 28.45 | .10 | .88 | .98 | (.11 | ) | (1.87 | ) | ||||||||||
October 31, 2015 | 31.03 | .06 | (.49 | ) | (.43 | ) | (.01 | ) | (2.14 | ) | ||||||||
October 31, 2014 | 33.39 | .04 | 2.13 | 2.17 | (.03 | ) | (4.50 | ) | ||||||||||
October 31, 2013 | 23.84 | .17 | 9.56 | 9.73 | (.18 | ) | — | |||||||||||
October 31, 2012 | 21.74 | .06 | 2.06 | 2.12 | (.02 | ) | — | |||||||||||
Class I | ||||||||||||||||||
April 30, 2017* | 27.72 | .04 | 4.81 | 4.85 | (.18 | ) | (.06 | ) | ||||||||||
October 31, 2016 | 28.74 | .19 | .88 | 1.07 | (.22 | ) | (1.87 | ) | ||||||||||
October 31, 2015 | 31.33 | .16 | (.49 | ) | (.33 | ) | (.12 | ) | (2.14 | ) | ||||||||
October 31, 2014 | 33.66 | .14 | 2.16 | 2.30 | (.13 | ) | (4.50 | ) | ||||||||||
October 31, 2013 | 24.03 | .27 | 9.61 | 9.88 | (.25 | ) | — | |||||||||||
October 31, 2012 | 21.91 | .12 | 2.08 | 2.20 | (.08 | ) | — | |||||||||||
Class R6 | ||||||||||||||||||
April 30, 2017* | 27.61 | .02 | 4.83 | 4.85 | (.21 | ) | (.06 | ) | ||||||||||
October 31, 2016(8) | 23.87 | .13 | 3.61 | 3.74 | — | — | ||||||||||||
Class S | ||||||||||||||||||
April 30, 2017* | 27.57 | .03 | 4.79 | 4.82 | (.16 | ) | (.06 | ) | ||||||||||
October 31, 2016 | 28.59 | .16 | .89 | 1.05 | (.20 | ) | (1.87 | ) | ||||||||||
October 31, 2015 | 31.19 | .14 | (.51 | ) | (.37 | ) | (.09 | ) | (2.14 | ) | ||||||||
October 31, 2014 | 33.53 | .10 | 2.17 | 2.27 | (.11 | ) | (4.50 | ) | ||||||||||
October 31, 2013 | 23.94 | .23 | 9.59 | 9.82 | (.23 | ) | — | |||||||||||
October 31, 2012 | 21.83 | .11 | 2.07 | 2.18 | (.07 | ) | — | |||||||||||
Class T | ||||||||||||||||||
April 30, 2017(10) | 31.94 | (.05 | ) | .28 | .23 | — | — | |||||||||||
Class Y | ||||||||||||||||||
April 30, 2017* | 27.61 | .06 | 4.80 | 4.86 | (.22 | ) | (.06 | ) | ||||||||||
October 31, 2016 | 28.64 | .22 | .88 | 1.10 | (.26 | ) | (1.87 | ) | ||||||||||
October 31, 2015 | 31.24 | .20 | (.51 | ) | (.31 | ) | (.15 | ) | (2.14 | ) | ||||||||
October 31, 2014 | 33.58 | .17 | 2.16 | 2.33 | (.17 | ) | (4.50 | ) | ||||||||||
October 31, 2013 | 23.97 | .32 | 9.57 | 9.89 | (.28 | ) | — | |||||||||||
October 31, 2012 | 21.85 | .15 | 2.07 | 2.22 | (.10 | ) | — | |||||||||||
See accompanying notes which are an integral part of the financial statements.
138 U.S. Small Cap Equity Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | ||||||||||
(.15 | ) | 31.90 | 17.32 | 18,748 | 1.25 | 1.25 | (.08 | ) | 53 | |||||||||
(1.99 | ) | 27.32 | 3.99 | 20,554 | 1.25 | 1.25 | .37 | 98 | ||||||||||
(2.16 | ) | 28.33 | (1.72 | ) | 23,410 | 1.25 | 1.25 | .20 | 95 | |||||||||
(4.55 | ) | 30.93 | 6.70 | 25,406 | 1.25 | 1.25 | .09 | 86 | ||||||||||
(.17 | ) | 33.31 | 41.08 | 23,677 | 1.25 | 1.25 | .58 | 111 | ||||||||||
(.01 | ) | 23.77 | 9.73 | 15,232 | 1.25 | 1.25 | .21 | 129 | ||||||||||
(.06 | ) | 30.33 | 16.90 | 22,913 | 2.00 | 2.00 | (.84 | ) | 53 | |||||||||
(1.87 | ) | 26.00 | 3.19 | 22,459 | 2.00 | 2.00 | (.38 | ) | 98 | |||||||||
(2.14 | ) | 27.13 | (2.42 | ) | 27,794 | 2.00 | 2.00 | (.55 | ) | 95 | ||||||||
(4.50 | ) | 29.89 | 5.91 | 33,003 | 2.00 | 2.00 | (.66 | ) | 86 | |||||||||
— | 32.51 | 40.01 | 32,285 | 2.00 | 2.00 | (.15 | ) | 111 | ||||||||||
— | 23.22 | 8.91 | 25,597 | 2.00 | 2.00 | (.54 | ) | 129 | ||||||||||
(.13 | ) | 32.07 | 17.32 | 3,684 | 1.25 | 1.25 | .18 | 53 | ||||||||||
(1.98 | ) | 27.45 | 3.96 | 24,161 | 1.25 | 1.25 | .36 | 98 | ||||||||||
(2.15 | ) | 28.45 | (1.68 | ) | 32,486 | 1.25 | 1.25 | .20 | 95 | |||||||||
(4.53 | ) | 31.03 | 6.71 | 42,588 | 1.25 | 1.25 | .09 | 86 | ||||||||||
(.18 | ) | 33.39 | 41.10 | 32,126 | 1.24 | 1.23 | .60 | 111 | ||||||||||
(.02 | ) | 23.84 | 9.78 | 24,995 | 1.25 | 1.20 | .26 | 129 | ||||||||||
(.24 | ) | 32.33 | 17.52 | 123,310 | .95 | .93 | .25 | 53 | ||||||||||
(2.09 | ) | 27.72 | 4.29 | 148,638 | .92 | .92 | .70 | 98 | ||||||||||
(2.26 | ) | 28.74 | (1.35 | ) | 174,112 | .92 | .92 | .53 | 95 | |||||||||
(4.63 | ) | 31.33 | 7.06 | 192,131 | .92 | .92 | .42 | 86 | ||||||||||
(.25 | ) | 33.66 | 41.53 | 180,599 | .92 | .92 | .95 | 111 | ||||||||||
(.08 | ) | 24.03 | 10.08 | 153,233 | .92 | .92 | .54 | 129 | ||||||||||
(.27 | ) | 32.19 | 17.59 | 2,695 | .85 | .83 | .11 | 53 | ||||||||||
— | 27.61 | 15.67 | 401 | .85 | .83 | .68 | 98 | |||||||||||
(.22 | ) | 32.17 | 17.48 | 1,162,849 | 1.01 | .99 | .17 | 53 | ||||||||||
(2.07 | ) | 27.57 | 4.22 | 1,083,721 | 1.00 | 1.00 | .62 | 98 | ||||||||||
(2.23 | ) | 28.59 | (1.46 | ) | 1,335,635 | 1.00 | 1.00 | .45 | 95 | |||||||||
(4.61 | ) | 31.19 | 7.01 | 1,512,046 | 1.00 | 1.00 | .33 | 86 | ||||||||||
(.23 | ) | 33.53 | 41.38 | 1,034,016 | 1.00 | 1.00 | .81 | 111 | ||||||||||
(.07 | ) | 23.94 | 10.02 | 733,436 | 1.00 | 1.00 | .46 | 129 | ||||||||||
— | 32.17 | 0.72 | 1,527 | 1.00 | .86 | (1.42 | ) | 53 | ||||||||||
(.28 | ) | 32.19 | 17.61 | 397,419 | .80 | .80 | .36 | 53 | ||||||||||
(2.13 | ) | 27.61 | 4.42 | 390,468 | .80 | .80 | .81 | 98 | ||||||||||
(2.29 | ) | 28.64 | (1.26 | ) | 476,814 | .80 | .80 | .65 | 95 | |||||||||
(4.67 | ) | 31.24 | 7.17 | 638,778 | .80 | .80 | .51 | 86 | ||||||||||
(.28 | ) | 33.58 | 41.67 | 327,958 | .80 | .80 | 1.13 | 111 | ||||||||||
(.10 | ) | 23.97 | 10.22 | 407,634 | .82 | .82 | .65 | 129 |
See accompanying notes which are an integral part of the financial statements.
U.S. Small Cap Equity Fund 139
Russell Investment Company
U.S. Small Cap Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 999,633 |
Administration fees | 68,911 | |
Distribution fees | 18,121 | |
Shareholder servicing fees | 5,509 | |
Transfer agent fees | 178,639 | |
Trustee fees | 8,072 | |
$ | 1,278,885 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Collateral Fund | $ | 85,476 | $ | 250,487 | $ | 198,029 | $ | — | $ | — | $ | 137,934 | $ | 379 | $ | — | |
U.S. Cash Management Fund | 90,997 | 618,199 | 600,945 | — | (7) | 108,244 | 305 | — | |||||||||
$ | 176,473 | $ | 868,686 | $ | 798,974 | $ | — | $ | (7) | $ | 246,178 | $ | 684 | $ | — |
Federal Income Taxes (Unaudited)
At October 31, 2016, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 1,622,794,687 | |||
Unrealized Appreciation | $ | 291,851,890 | |||
Unrealized Depreciation | (37,786,976 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 254,064,914 |
See accompanying notes which are an integral part of the financial statements.
140 U.S. Small Cap Equity Fund
Russell Investment Company
International Developed Markets Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,114.10 | $ | 1,018.55 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 6.60 | $ | 6.31 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.26% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,110.10 | $ | 1,014.83 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 10.52 | $ | 10.04 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 2.01% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,113.60 | $ | 1,018.55 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 6.60 | $ | 6.31 | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 1.26% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
International Developed Markets Fund 141
Russell Investment Company
International Developed Markets Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class I | Performance | expenses) | Class Y | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 1,115.70 | $ | 1,020.13 | April 30, 2017 | $ | 1,116.80 | $ | 1,020.78 | |||
Expenses Paid During Period* | $ | 4.93 | $ | 4.71 | Expenses Paid During Period* | $ | 4.25 | $ | 4.06 | |||
* Expenses are equal to the Fund's annualized expense ratio of 0.94% | * Expenses are equal to the Fund's annualized expense ratio of 0.81% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the six month period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | year period). | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,115.60 | $ | 1,019.84 | ||||||||
Expenses Paid During Period* | $ | 5.25 | $ | 5.01 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.00% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class T | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,028.90 | $ | 1,020.48 | ||||||||
Expenses Paid During Period* | $ | 1.09 | $ | 4.36 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.87% | ||||||||||||
(representing the 45-day period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
0.87% (representing the six-month period annualized), multiplied by the | ||||||||||||
average account value over the period, multiplied by 181/230 (to reflect the | ||||||||||||
on-half year period). |
142 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Common Stocks - 94.7% | Petroleo Brasileiro SA(Æ) | 448,861 | 2,031 | ||||||||
Argentina - 0.1% | 23,565 | ||||||||||
Pampa Energia SA - ADR(Æ) | 49,907 | 2,722 | |||||||||
Canada - 3.6% | |||||||||||
Australia - 3.0% | Bank of Montreal | 149,823 | 10,609 | ||||||||
AGL Energy, Ltd. | 104,949 | 2,104 | Bank of Nova Scotia (The) | 135,717 | 7,544 | ||||||
Amcor, Ltd. Class A | 78,464 | 922 | BCE, Inc. | 30,454 | 1,387 | ||||||
Aristocrat Leisure, Ltd. | 651,114 | 9,572 | Brookfield Asset Management, Inc. | ||||||||
Australia & New Zealand Banking | Class A | 98,452 | 3,639 | ||||||||
Group, Ltd. - ADR | 143,409 | 3,510 | Canadian Imperial Bank of Commerce | 103,978 | 8,398 | ||||||
Bendigo & Adelaide Bank, Ltd. | 36,358 | 335 | Canadian National Railway Co. | 7,586 | 548 | ||||||
BGP Holdings PLC(Å)(Æ) | 559,805 | 8 | Canadian Real Estate Investment | ||||||||
Brambles, Ltd. | 102,157 | 791 | Trust(ö) | 12,300 | 445 | ||||||
Coca-Cola Amatil, Ltd. | 110,100 | 773 | Canadian Tire Corp., Ltd. Class A | 17,109 | 2,088 | ||||||
Commonwealth Bank of Australia - ADR | 83,488 | 5,460 | Capital Power Corp. | 49,900 | 909 | ||||||
CSL, Ltd. | 42,600 | 4,230 | CI Financial Corp. | 10,400 | 203 | ||||||
CSR, Ltd. | 292,400 | 1,072 | Cogeco Communications, Inc. | 20,800 | 1,190 | ||||||
GPT Group (The)(ö) | 102,630 | 403 | Encana Corp. | 430,700 | 4,610 | ||||||
Harvey Norman Holdings, Ltd. | 47,700 | 150 | First Quantum Minerals, Ltd. | 442,800 | 4,220 | ||||||
Investa Office Fund(ö) | 76,200 | 271 | George Weston, Ltd. | 59,200 | 5,317 | ||||||
Macquarie Group, Ltd. | 198,100 | 13,756 | Granite Real Estate Investment Trust(ö) | 16,200 | 581 | ||||||
Metcash, Ltd.(Æ) | 358,200 | 579 | Great-West Lifeco, Inc. | 122,469 | 3,294 | ||||||
National Australia Bank, Ltd. - ADR | 135,473 | 3,442 | H&R Real Estate Investment Trust(ö) | 33,800 | 573 | ||||||
Northern Star Resources, Ltd. | 658,900 | 2,135 | Hydro One, Ltd.(Þ) | 17,138 | 302 | ||||||
Qantas Airways, Ltd. | 1,358,500 | 4,314 | IGM Financial, Inc. | 5,300 | 159 | ||||||
QBE Insurance Group, Ltd. | 794,500 | 7,644 | Loblaw Cos., Ltd. | 68,900 | 3,867 | ||||||
Rio Tinto, Ltd. - ADR | 33,607 | 1,519 | Magna International, Inc. Class A | 13,215 | 552 | ||||||
Sandfire Resources NL | 400,079 | 1,733 | Manulife Financial Corp. | 424,752 | 7,449 | ||||||
South32, Ltd. | 193,100 | 401 | National Bank of Canada | 69,400 | 2,698 | ||||||
Stockland(ö) | 365,350 | 1,322 | Power Corp. of Canada | 89,362 | 2,071 | ||||||
Telstra Corp., Ltd. | 320,333 | 1,013 | Royal Bank of Canada - GDR | 75,879 | 5,196 | ||||||
Wesfarmers, Ltd.(Æ) | 74,176 | 2,389 | Seven Generations Energy, Ltd. Class | ||||||||
Westpac Banking Corp. | 93,368 | 2,445 | A(Æ) | 57,638 | 1,021 | ||||||
Woolworths, Ltd. | 111,207 | 2,239 | Sun Life Financial, Inc. | 29,126 | 1,029 | ||||||
74,532 | Teck Resources, Ltd. Class B | 38,142 | 791 | ||||||||
Toronto Dominion Bank | 129,812 | 6,108 | |||||||||
Austria - 0.4% | West Fraser Timber Co., Ltd. | 47,898 | 2,152 | ||||||||
Erste Group Bank AG | 262,331 | 9,377 | 88,950 | ||||||||
Belgium - 1.3% | Cayman Islands - 1.0% | ||||||||||
Ageas | 10,525 | 431 | Melco Crown Entertainment, Ltd. - ADR | 264,366 | 5,803 | ||||||
Anheuser-Busch InBev SA | 111,091 | 12,554 | Tencent Holdings, Ltd. | 568,500 | 17,782 | ||||||
Colruyt SA | 17,701 | 909 | 23,585 | ||||||||
Groupe Bruxelles Lambert SA(Ñ) | 22,042 | 2,113 | |||||||||
KBC Groep NV | 124,725 | 9,004 | Chile - 0.1% | ||||||||
Solvay SA | 6,795 | 863 | Enel Americas SA - ADR | 199,200 | 1,974 | ||||||
UCB SA | 75,046 | 5,849 | |||||||||
31,723 | China - 0.8% | ||||||||||
Alibaba Group Holding, Ltd. - ADR(Æ) | 94,949 | 10,967 | |||||||||
Bermuda - 0.2% | Lenovo Group, Ltd. | 12,660,000 | 8,095 | ||||||||
XL Group, Ltd. | 117,659 | 4,924 | 19,062 | ||||||||
Brazil - 1.0% | Colombia - 0.1% | ||||||||||
BM&FBovespa SA - Bolsa de Valores | Ecopetrol SA - ADR(Ñ) | 205,800 | 1,881 | ||||||||
Mercadorias e Futuros(Æ) | 661,200 | 3,960 | |||||||||
Cielo SA | 460,420 | 3,496 | Czech Republic - 0.0% | ||||||||
Embraer SA - ADR | 221,300 | 4,249 | Komercni Banka AS | 20,100 | 779 | ||||||
Itau Unibanco Holding SA - ADR | 437,480 | 5,381 | |||||||||
Petroleo Brasileiro SA - ADR(Æ) | 493,694 | 4,448 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 143
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Denmark - 1.1% | Vinci SA | 137,239 | 11,690 | ||||||
Danske Bank A/S | 246,094 | 8,937 | 237,874 | ||||||
DFDS A/S | 49,788 | 2,969 | |||||||
DSV A/S | 153,761 | 8,569 | Germany - 8.0% | ||||||
Genmab A/S(Æ) | 23,960 | 4,769 | adidas AG | 28,383 | 5,686 | ||||
ISS A/S | 4,410 | 183 | Allianz SE | 27,169 | 5,173 | ||||
Novo Nordisk A/S Class B | 23,814 | 926 | BASF SE | 12,521 | 1,220 | ||||
Royal Unibrew A/S | 3,650 | 159 | Bayer AG | 243,405 | 30,120 | ||||
26,512 | Bayerische Motoren Werke AG | 12,486 | 1,192 | ||||||
Continental AG | 37,567 | 8,409 | |||||||
Finland - 0.4% | Covestro AG(Þ) | 14,318 | 1,116 | ||||||
Cargotec OYJ Class B | 28,060 | 1,673 | Daimler AG | 92,760 | 6,907 | ||||
Outokumpu OYJ | 269,400 | 2,588 | Deutsche Bank AG | 317,867 | 5,724 | ||||
Sampo OYJ Class A(Ñ) | 34,168 | 1,638 | Deutsche Boerse AG | 274,170 | 26,839 | ||||
UPM-Kymmene OYJ | 80,500 | 2,126 | Deutsche Lufthansa AG | 188,808 | 3,257 | ||||
Valmet OYJ | 124,330 | 2,265 | Deutsche Telekom AG | 278,231 | 4,879 | ||||
Wartsila OYJ Abp Class B | 5,731 | 349 | E.ON SE | 36,600 | 285 | ||||
10,639 | Fresenius SE & Co. KGaA | 16,889 | 1,370 | ||||||
HeidelbergCement AG | 67,025 | 6,206 | |||||||
France - 9.6% | Henkel AG & Co. KGaA | 6,482 | 757 | ||||||
Air Liquide SA Class A | 65,364 | 7,874 | Hugo Boss AG | 51,300 | 3,903 | ||||
Airbus Group SE | 138,438 | 11,192 | Infineon Technologies AG - ADR | 323,435 | 6,695 | ||||
Arkema SA | 7,017 | 743 | K&S AG | 14,431 | 344 | ||||
AXA SA(Ñ) | 223,197 | 5,959 | Linde AG | 43,100 | 7,744 | ||||
BNP Paribas SA | 340,958 | 24,046 | MAN SE | 12,673 | 1,332 | ||||
Bouygues SA - ADR(Ñ) | 241,711 | 10,156 | Metro AG | 103,530 | 3,409 | ||||
Capgemini SA | 5,956 | 597 | Muenchener Rueckversicherungs- | ||||||
Carrefour SA | 47,279 | 1,115 | Gesellschaft AG in Muenchen | 85,942 | 16,468 | ||||
Casino Guichard Perrachon SA | 33,655 | 2,027 | SAP SE - ADR(Ñ) | 71,908 | 7,204 | ||||
Christian Dior SE | 4,596 | 1,263 | SAP SE - ADR | 63,796 | 6,399 | ||||
Cie de Saint-Gobain | 186,746 | 10,079 | Siemens AG | 153,323 | 21,977 | ||||
Credit Agricole SA | 532,679 | 7,917 | Siltronic AG(Æ) | 11,935 | 858 | ||||
Danone SA(Ñ) | 20,145 | 1,408 | Talanx AG | 143,422 | 5,168 | ||||
Engie SA | 230,015 | 3,244 | Zalando SE(Æ)(Þ) | 180,831 | 7,975 | ||||
Essilor International SA | 48,392 | 6,270 | 198,616 | ||||||
Eurazeo SA | 13,944 | 946 | |||||||
Faurecia | 56,589 | 2,763 | Hong Kong - 2.2% | ||||||
Gecina SA(ö) | 8,913 | 1,268 | AIA Group, Ltd. | 1,178,382 | 8,151 | ||||
Hermes International | 8,347 | 3,994 | BOC Hong Kong Holdings, Ltd. | 209,500 | 862 | ||||
L'Oreal SA(Ñ) | 45,837 | 9,130 | Cheung Kong Infrastructure Holdings, | ||||||
LVMH Moet Hennessy Louis Vuitton | Ltd. | 155,000 | 1,357 | ||||||
SE - ADR | 7,086 | 1,751 | Cheung Kong Property Holdings, Ltd. | 96,000 | 688 | ||||
Natixis SA | 506,957 | 3,527 | China Mobile, Ltd. | 466,500 | 4,970 | ||||
Orange SA - ADR | 73,407 | 1,136 | CK Hutchison Holdings, Ltd. | 105,196 | 1,313 | ||||
Pernod Ricard SA | 7,341 | 918 | CLP Holdings, Ltd. | 51,500 | 543 | ||||
Peugeot SA | 132,389 | 2,773 | Guangdong Investment, Ltd. | 2,423,500 | 3,751 | ||||
Publicis Groupe SA - ADR | 190,115 | 13,722 | Hang Seng Bank, Ltd. | 42,700 | 866 | ||||
Renault SA | 69,659 | 6,495 | Henderson Land Development Co., Ltd. | 32,000 | 203 | ||||
Rexel SA Class H | 318,746 | 5,694 | Hongkong Land Holdings, Ltd. | 308,500 | 2,383 | ||||
Safran SA | 49,147 | 4,069 | Hysan Development Co., Ltd. | 649,000 | 3,064 | ||||
Sanofi - ADR | 236,485 | 22,333 | Jardine Matheson Holdings, Ltd. | 16,800 | 1,082 | ||||
Schneider Electric SE | 186,923 | 14,759 | Jardine Strategic Holdings, Ltd. | 10,300 | 435 | ||||
SCOR SE - ADR(Ñ) | 63,731 | 2,521 | Kerry Properties, Ltd. | 1,040,000 | 3,895 | ||||
Societe Generale SA | 132,786 | 7,258 | Link Real Estate Investment Trust(ö) | 111,500 | 801 | ||||
Total SA | 388,016 | 19,888 | MTR Corp., Ltd. | 131,500 | 758 | ||||
Vallourec SA(Æ)(Ñ) | 989,124 | 6,322 | New World Development Co., Ltd. | 1,526,631 | 1,897 | ||||
Veolia Environnement SA(Ñ) | 54,000 | 1,027 | Semiconductor Manufacturing | ||||||
International Corp.(Æ) | 3,724,200 | 4,712 |
See accompanying notes which are an integral part of the financial statements.
144 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Sun Hung Kai Properties, Ltd. | 22,000 | 330 | Daito Trust Construction Co., Ltd. | 16,200 | 2,384 | |||||
Swire Pacific, Ltd. Class A | 26,000 | 250 | DeNA Co., Ltd. | 27,200 | 583 | |||||
WH Group, Ltd.(Þ) | 6,604,500 | 5,903 | Denso Corp. | 18,300 | 789 | |||||
Wheelock & Co., Ltd. | 647,000 | 5,041 | DIC Corp. | 43,400 | 1,547 | |||||
Yue Yuen Industrial Holdings, Ltd. | 376,500 | 1,488 | East Japan Railway Co. | 7,200 | 644 | |||||
54,743 | EDION Corp.(Ñ) | 80,900 | 789 | |||||||
Eisai Co., Ltd. | 123,700 | 6,500 | ||||||||
India - 0.4% | FANUC Corp. | 28,500 | 5,794 | |||||||
HDFC Bank, Ltd. - ADR | 137,037 | 10,910 | Fuji Electric Co., Ltd. | 1,949,000 | 10,686 | |||||
Fuji Heavy Industries, Ltd. | 46,142 | 1,747 | ||||||||
Ireland - 0.9% | Fuji Media Holdings, Inc. | 128,300 | 1,834 | |||||||
CRH PLC | 256,489 | 9,360 | FUJIFILM Holdings Corp. | 70,300 | 2,608 | |||||
James Hardie Industries PLC | 294,553 | 4,998 | Fujitsu, Ltd. | 2,358,000 | 14,716 | |||||
Ryanair Holdings PLC - ADR(Æ) | 41,016 | 3,771 | Gunma Bank, Ltd. (The) | 254,500 | 1,368 | |||||
Willis Towers Watson PLC | 38,633 | 5,124 | H2O Retailing Corp. | 17,700 | 300 | |||||
23,253 | Hankyu Hanshin Holdings, Inc. | 17,100 | 565 | |||||||
Haseko Corp. | 112,900 | 1,290 | ||||||||
Israel - 0.6% | Hitachi, Ltd. | 1,961,000 | 10,826 | |||||||
Bank Hapoalim BM | 228,121 | 1,422 | Hokuhoku Financial Group, Inc. | 70,300 | 1,106 | |||||
Bank Leumi Le-Israel BM(Æ) | 981,665 | 4,590 | Honda Motor Co., Ltd. | 497,370 | 14,427 | |||||
Check Point Software Technologies, Ltd. | IHI Corp. | 2,371,000 | 8,054 | |||||||
(Æ) | 4,304 | 448 | Iida Group Holdings Co., Ltd. | 194,200 | 3,094 | |||||
Teva Pharmaceutical Industries, Ltd. | Inpex Corp. | 1,180,800 | 11,323 | |||||||
- ADR | 198,500 | 6,268 | Isuzu Motors, Ltd. | 716,700 | 9,726 | |||||
Teva Pharmaceutical Industries, Ltd. | 37,691 | 1,189 | ITOCHU Corp. | 270,600 | 3,830 | |||||
13,917 | Iyo Bank, Ltd. (The) | 60,600 | 430 | |||||||
Japan Petroleum Exploration Co., Ltd. | 83,000 | 1,813 | ||||||||
Italy - 3.2% | Japan Post Bank Co., Ltd. | 140,800 | 1,752 | |||||||
Assicurazioni Generali SpA | 30,590 | 484 | Japan Post Holdings Co., Ltd. | 369,200 | 4,575 | |||||
Davide Campari-Milano SpA | 550,875 | 6,517 | Japan Retail Fund Investment Corp.(ö) | 210 | 410 | |||||
Enel SpA | 6,172,022 | 29,320 | Japan Tobacco, Inc. | 53,600 | 1,782 | |||||
ENI SpA - ADR | 1,290,945 | 20,022 | JTEKT Corp. | 5,000 | 79 | |||||
FinecoBank Banca Fineco SpA | 397,285 | 2,827 | JX Holdings, Inc. | 333,600 | 1,506 | |||||
Intesa Sanpaolo SpA | 1,154,367 | 3,357 | Kajima Corp. | 101,000 | 686 | |||||
Italgas SpA(Æ) | 110,301 | 499 | Kansai Electric Power Co., Inc. (The) | 19,000 | 257 | |||||
Moncler SpA | 31,970 | 789 | Kao Corp. | 47,500 | 2,620 | |||||
Parmalat SpA | 307,920 | 1,043 | KDDI Corp. | 49,400 | 1,310 | |||||
Saras SpA | 635,687 | 1,328 | Keyence Corp. | 5,300 | 2,132 | |||||
Snam Rete Gas SpA | 525,561 | 2,323 | Komatsu, Ltd. | 194,300 | 5,189 | |||||
Telecom Italia SpA(Æ) | 5,868,631 | 5,203 | K's Holdings Corp. | 8,400 | 162 | |||||
Telecom Italia SpA | 2,748,086 | 1,968 | Kuraray Co., Ltd. | 65,000 | 1,049 | |||||
UniCredit SpA(Æ) | 259,831 | 4,229 | Lawson, Inc. | 19,500 | 1,295 | |||||
79,909 | Marubeni Corp. | 1,071,200 | 6,604 | |||||||
Matsumotokiyoshi Holdings Co., Ltd. | 19,300 | 968 | ||||||||
Japan - 16.0% | Medipal Holdings Corp. | 53,400 | 884 | |||||||
Aisin Seiki Co., Ltd. | 16,000 | 784 | Miraca Holdings, Inc. | 3,700 | 171 | |||||
Alps Electric Co., Ltd. | 199,100 | 5,863 | Mitsubishi Chemical Holdings Corp. | 582,400 | 4,560 | |||||
Aozora Bank, Ltd. | 637,000 | 2,322 | Mitsubishi Corp. | 56,600 | 1,221 | |||||
Asahi Kasei Corp. | 106,000 | 1,011 | Mitsubishi Electric Corp. | 38,200 | 533 | |||||
Astellas Pharma, Inc. | 889,500 | 11,724 | Mitsubishi UFJ Financial Group, Inc. | 1,514,900 | 9,661 | |||||
Bridgestone Corp. | 32,000 | 1,336 | Mitsui & Co., Ltd. | 112,400 | 1,587 | |||||
Canon, Inc. | 60,500 | 2,011 | Mitsui Chemicals, Inc. | 452,000 | 2,313 | |||||
Central Japan Railway Co. | 14,600 | 2,448 | Mixi, Inc. | 71,500 | 3,965 | |||||
Chubu Electric Power Co., Inc. | 78,400 | 1,054 | Mizuho Financial Group, Inc. | 1,208,700 | 2,209 | |||||
Daicel Chemical Industries, Ltd. | 55,600 | 639 | Morinaga Milk Industry Co., Ltd. | 298,000 | 2,353 | |||||
Dai-ichi Life Holdings, Inc. | 279,225 | 4,763 | MS&AD Insurance Group Holdings, Inc. | 54,200 | 1,769 | |||||
Daiichi Sankyo Co., Ltd. | 74,300 | 1,650 | NEC Corp. | 148,000 | 368 | |||||
Daikin Industries, Ltd. | 15,400 | 1,498 | Nexon Co., Ltd. | 44,700 | 761 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 145
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
NH Foods, Ltd. | 106,000 | 3,016 | West Japan Railway Co. | 68,500 | 4,576 | |||||
Nidec Corp. | 50,700 | 4,653 | YA-MAN, Ltd.(Ñ) | 6,000 | 293 | |||||
Nintendo Co., Ltd. | 23,500 | 5,924 | 396,558 | |||||||
Nippon Steel & Sumitomo Metal Corp. | 14,300 | 322 | ||||||||
Nippon Suisan Kaisha, Ltd. | 345,900 | 1,667 | Jersey - 0.2% | |||||||
Nippon Telegraph & Telephone Corp. | 239,105 | 10,232 | Centamin PLC | 707,034 | 1,619 | |||||
Nippon Television Holdings, Inc. | 149,800 | 2,510 | Glencore PLC(Æ) | 485,781 | 1,903 | |||||
Nipro Corp. | 30,600 | 464 | Shire PLC - ADR | 7,380 | 435 | |||||
Nissan Motor Co., Ltd. | 122,200 | 1,162 | 3,957 | |||||||
Nitori Holdings Co., Ltd. | 11,000 | 1,433 | ||||||||
Nomura Holdings, Inc. | 1,073,300 | 6,455 | Luxembourg - 0.3% | |||||||
NTT DOCOMO, Inc. | 120,700 | 2,912 | ArcelorMittal(Æ) | 314,518 | 2,470 | |||||
Obayashi Corp. | 88,800 | 861 | Samsonite International SA | 997,500 | 3,850 | |||||
Oji Holdings Corp. | 181,000 | 876 | 6,320 | |||||||
Olympus Corp. | 109,400 | 4,216 | ||||||||
Ono Pharmaceutical Co., Ltd. | 212,200 | 4,387 | Macao - 0.3% | |||||||
Open House Co., Ltd. | 47,800 | 1,173 | Sands China, Ltd. | 1,620,000 | 7,359 | |||||
ORIX Corp. | 292,100 | 4,463 | ||||||||
Osaka Gas Co., Ltd. | 327,000 | 1,224 | Malaysia - 0.2% | |||||||
Recruit Holdings Co., Ltd. | 7,400 | 374 | CIMB Group Holdings BHD | 3,102,200 | 4,104 | |||||
Resona Holdings, Inc. | 103,000 | 574 | ||||||||
Rohm Co., Ltd. | 63,000 | 4,422 | Netherlands - 4.3% | |||||||
Saizeriya Co., Ltd. | 20,400 | 573 | ABN AMRO Group NV(Þ) | 63,574 | 1,667 | |||||
Secom Co., Ltd. | 8,200 | 595 | Aegon NV | 2,173,105 | 11,040 | |||||
Sega Sammy Holdings, Inc. | 23,400 | 315 | AerCap Holdings NV(Æ) | 58,556 | 2,694 | |||||
Sekisui Chemical Co., Ltd. | 39,800 | 668 | Akzo Nobel NV(Ñ) | 21,089 | 1,841 | |||||
Sekisui House, Ltd. | 52,800 | 877 | ASML Holding NV | 35,268 | 4,657 | |||||
Seven & i Holdings Co., Ltd. | 15,900 | 672 | BE Semiconductor Industries NV | 3,530 | 184 | |||||
Shimamura Co., Ltd. | 11,400 | 1,561 | Boskalis Westminster(Ñ) | 7,110 | 261 | |||||
Shimizu Corp. | 78,000 | 749 | EXOR NV | 119,408 | 6,695 | |||||
SMC Corp. | 19,400 | 5,471 | Heineken NV(Ñ) | 62,924 | 5,606 | |||||
SoftBank Corp. | 91,600 | 6,948 | ING Groep NV | 1,109,936 | 18,062 | |||||
Sojitz Corp. | 331,500 | 842 | Koninklijke Ahold Delhaize NV | 109,835 | 2,275 | |||||
Sompo Japan Nipponkoa Holdings, Inc. | 82,700 | 3,122 | Koninklijke DSM NV | 12,595 | 900 | |||||
Sony Corp. | 528,700 | 17,853 | Koninklijke KPN NV | 1,980,520 | 5,727 | |||||
Sumitomo Bakelite Co., Ltd. | 29,000 | 186 | Koninklijke Philips NV | 274,144 | 9,501 | |||||
Sumitomo Chemical Co., Ltd. | 184,000 | 1,039 | Mobileye NV(Æ) | 58,420 | 3,617 | |||||
Sumitomo Corp. | 1,058,500 | 14,151 | NN Group NV | 233,312 | 7,735 | |||||
Sumitomo Electric Industries, Ltd. | 41,400 | 676 | NXP Semiconductors NV(Æ) | 5,133 | 543 | |||||
Sumitomo Mitsui Financial Group, Inc. | 253,500 | 9,395 | Royal Dutch Shell PLC Class A | 529,807 | 13,809 | |||||
Sumitomo Osaka Cement Co., Ltd. | 1,191,000 | 5,172 | Wolters Kluwer NV | 79,636 | 3,382 | |||||
Sumitomo Rubber Industries, Ltd. | 30,000 | 540 | Yandex NV Class A(Æ) | 218,465 | 5,955 | |||||
Taisei Corp. | 100,000 | 763 | 106,151 | |||||||
Takashimaya Co., Ltd. | 35,000 | 322 | ||||||||
Takeda Pharmaceutical Co., Ltd. | 45,500 | 2,181 | Norway - 0.2% | |||||||
Teijin, Ltd. | 43,000 | 833 | DNB ASA | 30,492 | 476 | |||||
Terumo Corp. | 23,600 | 861 | Grieg Seafood ASA(Æ) | 116,800 | 918 | |||||
Toho Gas Co., Ltd. | 62,000 | 443 | Norway Royal Salmon ASA | 1 | — | |||||
Tohoku Electric Power Co., Inc. | 108,700 | 1,450 | Telenor ASA | 61,212 | 989 | |||||
Tokio Marine Holdings, Inc. | 166,900 | 7,038 | TGS Nopec Geophysical Co. ASA - ADR | 88,060 | 1,922 | |||||
Tokyo Electric Power Co., Inc.(Æ) | 977,900 | 3,803 | Yara International ASA | 17,331 | 644 | |||||
Tokyo Electron, Ltd. | 9,000 | 1,048 | 4,949 | |||||||
Tokyo Gas Co., Ltd. | 155,000 | 721 | ||||||||
Toray Industries, Inc. | 123,000 | 1,088 | Portugal - 0.3% | |||||||
Toshiba Plant Systems & Services Corp. | 45,600 | 742 | Energias de Portugal SA | 311,212 | 1,027 | |||||
Toyota Industries Corp. | 15,800 | 787 | Galp Energia SGPS SA Class B | 466,217 | 7,250 | |||||
Toyota Motor Corp. | 171,700 | 9,280 | 8,277 | |||||||
Trend Micro, Inc. | 113,600 | 4,997 |
See accompanying notes which are an integral part of the financial statements.
146 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Russia - 1.0% | NCC AB Class B | 28,260 | 751 | ||||||||
Evraz PLC(Æ) | 641,367 | 1,796 | Nordea Bank AB | 693,657 | 8,530 | ||||||
Gazprom PJSC - ADR | 1,624,154 | 7,713 | Sandvik AB | 198,170 | 3,181 | ||||||
Lukoil PJSC - ADR | 49,845 | 2,475 | Skandinaviska Enskilda Banken AB | ||||||||
MMC Norilsk Nickel PJSC | 20,328 | 3,124 | Class A | 174,364 | 2,007 | ||||||
Rosneft Oil Co. PJSC | 542,663 | 3,024 | Svenska Cellulosa AB SCA Class B | 81,340 | 2,692 | ||||||
Sberbank of Russia PJSC Class T | 2,673,800 | 7,760 | Svenska Handelsbanken AB Class A(Ñ) | 50,207 | 712 | ||||||
25,892 | Swedbank AB Class A | 37,439 | 887 | ||||||||
Telefonaktiebolaget LM Ericsson Class B | 120,776 | 778 | |||||||||
Singapore - 1.2% | Telia Co. AB | 254,349 | 1,036 | ||||||||
BW LPG, Ltd.(Æ)(Þ) | 407,346 | 1,792 | Volvo AB Class B | 59,060 | 966 | ||||||
DBS Group Holdings, Ltd. | 124,300 | 1,726 | 46,606 | ||||||||
Jardine Cycle & Carriage, Ltd. | 136,900 | 4,639 | |||||||||
Oversea-Chinese Banking Corp., Ltd. | 206,700 | 1,454 | Switzerland - 6.5% | ||||||||
Singapore Telecommunications, Ltd. | 438,200 | 1,169 | ABB, Ltd. | 545,684 | 13,349 | ||||||
United Overseas Bank, Ltd.(Ñ) | 569,800 | 8,909 | Adecco SA | 68,880 | 5,115 | ||||||
Wilmar International, Ltd. | 2,768,500 | 7,026 | Allreal Holding AG(Æ) | 5,498 | 946 | ||||||
Yangzijiang Shipbuilding Holdings, Ltd. | 3,303,000 | 2,712 | Banque Cantonale Vaudoise | 1,694 | 1,227 | ||||||
29,427 | Berner Kantonalbank AG | 731 | 139 | ||||||||
Cie Financiere Richemont SA | 62,003 | 5,180 | |||||||||
South Korea - 2.5% | Coca-Cola HBC AG - ADR(Æ) | 53,420 | 1,482 | ||||||||
Hana Financial Group, Inc. | 161,065 | 5,536 | Credit Suisse Group AG(Æ) | 921,171 | 14,004 | ||||||
Hankook Tire Co., Ltd. | 94,134 | 4,873 | Georg Fischer AG | 3,256 | 3,069 | ||||||
NAVER Corp. | 5,031 | 3,534 | IWG PLC | 437,500 | 1,839 | ||||||
Netmarble Games Corp.(Æ)(Þ) | 2,622 | 362 | Julius Baer Group, Ltd.(Æ) | 140,894 | 7,341 | ||||||
POSCO | 37,580 | 8,875 | Lonza Group AG(Æ) | 29,812 | 6,097 | ||||||
Samsung Electronics Co., Ltd. | 15,539 | 30,376 | Nestle SA | 159,207 | 12,263 | ||||||
Shinhan Financial Group Co., Ltd. | 170,737 | 7,126 | Novartis AG | 222,028 | 17,085 | ||||||
60,682 | Roche Holding AG | 108,997 | 28,509 | ||||||||
SGS SA | 463 | 1,042 | |||||||||
Spain - 2.6% | Sika AG | 1,658 | 10,584 | ||||||||
Aena SA(Ñ)(Þ) | 30,991 | 5,466 | Sonova Holding AG | 2,226 | 329 | ||||||
Amadeus IT Group SA Class A | 90,454 | 4,876 | St. Galler Kantonalbank AG | 1,332 | 578 | ||||||
Banco Bilbao Vizcaya Argentaria SA | STMicroelectronics NV | 44,160 | 715 | ||||||||
- ADR | 104,096 | 833 | Swiss Life Holding AG(Æ) | 22,821 | 7,426 | ||||||
Banco de Sabadell SA - ADR | 3,642,098 | 7,005 | Swiss Re AG | 43,965 | 3,827 | ||||||
Banco Santander SA - ADR(Ñ) | 1,805,279 | 11,768 | Swisscom AG | 1,984 | 865 | ||||||
Bankinter SA | 560,534 | 4,934 | Syngenta AG | 2,403 | 1,117 | ||||||
Distribuidora Internacional de | UBS Group AG(Æ) | 807,117 | 13,788 | ||||||||
Alimentacion SA | 62,900 | 374 | Zurich Insurance Group AG | 12,675 | 3,508 | ||||||
Enagas SA | 26,589 | 699 | 161,424 | ||||||||
Endesa SA - ADR | 48,460 | 1,142 | |||||||||
Gas Natural SDG SA | 16,762 | 379 | Taiwan - 0.4% | ||||||||
Iberdrola SA | 349,823 | 2,515 | Catcher Technology Co., Ltd. | 569,000 | 5,847 | ||||||
Industria de Diseno Textil SA(Ñ) | 225,603 | 8,648 | Hon Hai Precision Industry Co., Ltd. | 805,206 | 2,636 | ||||||
Red Electrica Corp. SA | 127,178 | 2,479 | Teco Electric and Machinery Co., Ltd. | 1,963,400 | 1,947 | ||||||
Repsol SA - ADR | 268,020 | 4,243 | 10,430 | ||||||||
Telefonica SA - ADR | 849,144 | 9,362 | |||||||||
64,723 | Thailand - 0.1% | ||||||||||
Bangkok Bank PCL | 249,900 | 1,351 | |||||||||
Sweden - 1.9% | Charoen Pokphand Foods PCL | 2,815,500 | 2,174 | ||||||||
Assa Abloy AB Class B(Ñ) | 405,679 | 8,784 | 3,525 | ||||||||
Atlas Copco AB Class A | 216,410 | 8,084 | |||||||||
Atlas Copco AB Class B | 35,530 | 1,182 | United Kingdom - 16.0% | ||||||||
Electrolux AB | 128,536 | 3,816 | 3i Group PLC | 748,121 | 7,688 | ||||||
Fastighets AB Balder Class B(Æ) | 65,972 | 1,473 | Amec Foster Wheeler PLC - GDR | 439,999 | 3,089 | ||||||
Husqvarna AB Class B | 17,300 | 172 | Antofagasta PLC | 1,238,347 | 13,420 | ||||||
L E Lundbergforetagen AB Class B | 11,991 | 868 | Aon PLC | 43,020 | 5,156 | ||||||
Melker Schorling AB | 10,727 | 687 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 147
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
AstraZeneca PLC | 57,579 | 3,444 | TechnipFMC PLC(Æ) | 239,908 | 7,210 | |||||
Aviva PLC | 1,067,193 | 7,249 | Tesco PLC(Æ) | 6,136,607 | 14,557 | |||||
Babcock International Group PLC | 389,600 | 4,536 | Travis Perkins PLC | 716,063 | 14,940 | |||||
Barclays PLC | 2,458,989 | 6,704 | Unilever NV | 70,564 | 3,700 | |||||
Bellway PLC | 8,832 | 325 | Unilever PLC | 47,878 | 2,463 | |||||
BHP Billiton PLC | 583,180 | 8,882 | Virgin Money Holdings UK PLC Class A | 141,600 | 582 | |||||
BP PLC | 1,737,408 | 9,941 | Vodafone Group PLC | 4,936,699 | 12,726 | |||||
BP PLC - ADR | 110,900 | 3,806 | Wm Morrison Supermarkets PLC | 1,251,310 | 3,885 | |||||
British American Tobacco PLC | 427,600 | 28,935 | Worldpay Group PLC(Þ) | 1,275,463 | 4,956 | |||||
BT Group PLC | 353,032 | 1,393 | WPP PLC | 733,113 | 15,688 | |||||
CNH Industrial NV | 760,703 | 8,385 | 395,901 | |||||||
CNH Industrial NV(Ñ) | 216,100 | 2,399 | ||||||||
Coca-Cola European Partners PLC | 212,500 | 8,207 | United States - 2.7% | |||||||
Compass Group PLC | 68,862 | 1,389 | Alphabet, Inc. Class C(Æ) | 15,134 | 13,712 | |||||
Dairy Crest Group PLC | 743,049 | 5,525 | Carnival PLC | 124,078 | 7,652 | |||||
Diageo PLC | 171,132 | 4,984 | Facebook, Inc. Class A(Æ) | 74,772 | 11,234 | |||||
Dialog Semiconductor PLC(Æ) | 24,390 | 1,141 | IHS Markit, Ltd.(Æ) | 11,973 | 520 | |||||
Direct Line Insurance Group PLC | 306,768 | 1,387 | MasterCard, Inc. Class A | 29,900 | 3,478 | |||||
DS Smith PLC Class F | 2,218,115 | 12,387 | Mylan NV(Æ) | 185,254 | 6,919 | |||||
Fiat Chrysler Automobiles NV(Æ) | 1,484,060 | 16,806 | News Corp. Class A | 382,899 | 4,870 | |||||
GKN PLC | 99,781 | 464 | Philip Morris International, Inc. | 33,726 | 3,738 | |||||
GlaxoSmithKline PLC - ADR | 1,274,065 | 25,626 | Priceline Group, Inc. (The)(Æ) | 3,100 | 5,725 | |||||
HSBC Holdings PLC | 1,689,180 | 13,910 | Schlumberger, Ltd. | 56,683 | 4,115 | |||||
Hunting PLC(Æ) | 197,330 | 1,435 | Visa, Inc. Class A | 65,500 | 5,976 | |||||
Imperial Tobacco Group PLC | 399,374 | 19,548 | 67,939 | |||||||
Inchcape PLC | 245,770 | 2,719 | ||||||||
Indivior PLC | 125,536 | 544 | Total Common Stocks | |||||||
International Consolidated Airlines | (cost $2,201,529) | 2,343,671 | ||||||||
Group SA | 305,100 | 2,212 | ||||||||
J Sainsbury PLC | 129,263 | 461 | ||||||||
Just Eat PLC(Æ) | 765,599 | 5,721 | Preferred Stocks - 0.8% | |||||||
Kingfisher PLC | 129,191 | 571 | Germany - 0.8% | |||||||
Henkel AG & Co. KGaA | 14,193 | 1,934 | ||||||||
Land Securities Group PLC(ö) | 117,440 | 1,682 | Porsche Automobil Holding SE | 7,890 | 462 | |||||
Legal & General Group PLC | 171,808 | 547 | Volkswagen AG | 102,807 | 16,301 | |||||
Lloyds Banking Group PLC | 1,266,323 | 1,138 | 18,697 | |||||||
Marks & Spencer Group PLC | 108,299 | 514 | ||||||||
Meggitt PLC | 102,957 | 616 | Japan - 0.0% | |||||||
Mondi PLC | 93,027 | 2,409 | Shinkin Central Bank Class A | 145 | 301 | |||||
National Grid PLC | 481,666 | 6,238 | ||||||||
Next PLC | 20,650 | 1,151 | Total Preferred Stocks | |||||||
Old Mutual PLC | 1,028,907 | 2,585 | ||||||||
Persimmon PLC Class A | 131,155 | 3,957 | (cost $17,134) | 18,998 | ||||||
Petrofac, Ltd. | 159,390 | 1,679 | ||||||||
Reckitt Benckiser Group PLC | 83,572 | 7,697 | Short-Term Investments - 4.5% | |||||||
Redrow PLC | 269,489 | 2,012 | United States - 4.5% | |||||||
RELX NV(Ñ) | 84,830 | 1,639 | U.S. Cash Management Fund | 81,093,452 | (8) | 81,110 | ||||
RELX PLC | 70,508 | 1,429 | United States Treasury Bills | |||||||
Rio Tinto PLC | 107,440 | 4,250 | 0.616% due 05/11/17 | 3,100 | 3,099 | |||||
Royal Bank of Scotland Group PLC(Æ) | 2,677,401 | 9,202 | ||||||||
Royal Dutch Shell PLC Class B | 372,796 | 9,927 | 0.699% due 06/22/17 | 16,400 | 16,383 | |||||
Royal Dutch Shell PLC Class A | 41,687 | 1,080 | 0.744% due 07/13/17 | 10,300 | 10,285 | |||||
Royal Mail PLC | 72,900 | 380 | 110,877 | |||||||
RSA Insurance Group PLC | 327,023 | 2,524 | Total Short-Term Investments | |||||||
Sage Group PLC (The) | 65,400 | 567 | ||||||||
Smith & Nephew PLC | 31,663 | 520 | (cost $110,879) | 110,877 | ||||||
Standard Chartered PLC(Æ) | 780,530 | 7,286 | ||||||||
Subsea 7 SA | 141,485 | 2,330 | Other Securities - 4.1% | |||||||
Taylor Wimpey PLC | 558,447 | 1,446 | U.S. Cash Collateral Fund(×) | 101,512,850 | (8) | 101,513 | ||||
See accompanying notes which are an integral part of the financial statements. | Total Other Securities |
148 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Principal | Fair | |||
Amount ($) | Value | |||
or Shares | $ | |||
(cost $101,513) | 101,513 | |||
Total Investments 104.1% | ||||
(identified cost $2,431,055) | 2,575,059 | |||
Other Assets and Liabilities, Net | ||||
- | (4.1%) | (101,281 | ) | |
Net Assets - 100.0% | 2,473,778 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 149
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.0% | ||||||||||||
BGP Holdings PLC | 08/06/09 | EUR | 559,805 | — | — | 8 | ||||||
8 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
CAC40 Euro Index Futures | 130 | EUR | 6,780 | 05/17 | 387 | ||
DAX Index Futures | 20 | EUR | 6,234 | 06/17 | 238 | ||
EURO STOXX 50 Index Futures | 907 | EUR | 31,818 | 06/17 | 1,579 | ||
FTSE 100 Index Futures | 94 | GBP | 6,735 | 06/17 | (129 | ) | |
Hang Seng Index Futures | 15 | HKD | 18,421 | 05/17 | 36 | ||
MSCI Emerging Markets Mini Index Futures | 271 | USD | 24,712 | 06/17 | 1,286 | ||
S&P/TSX 60 Index Futures | 435 | CAD | 79,762 | 06/17 | 309 | ||
SPI 200 Index Futures | 368 | AUD | 54,400 | 06/17 | 1,120 | ||
TOPIX Index Futures | 745 | JPY | 11,398,499 | 06/17 | (823 | ) | |
Short Positions | |||||||
FTSE 100 Index Futures | 599 | GBP | 42,918 | 06/17 | 856 | ||
Hang Seng Index Futures | 196 | HKD | 240,699 | 05/17 | (375 | ) | |
MSCI Emerging Markets Mini Index Futures | 1,176 | USD | 57,565 | 06/17 | (1,051 | ) | |
S&P 500 E-Mini Index Futures | 720 | USD | 85,698 | 06/17 | (672 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 2,761 |
Foreign Currency Exchange Contracts | |||||||||
Amounts in thousands | �� | ||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Amount | Amount | (Depreciation) | |||||||
Counterparty | Sold | Bought | Settlement Date | $ | |||||
Bank of America | USD | 229 | AUD | 300 | 06/21/17 | (5 | ) | ||
Bank of America | USD | 300 | AUD | 400 | 06/21/17 | — | |||
Bank of America | USD | 5,245 | AUD | 7,000 | 06/21/17 | (8 | ) | ||
Bank of America | USD | 226 | CAD | 300 | 06/21/17 | (6 | ) | ||
Bank of America | USD | 373 | CAD | 500 | 06/21/17 | (7 | ) | ||
Bank of America | USD | 6,671 | CAD | 9,000 | 06/21/17 | (73 | ) | ||
Bank of America | USD | 299 | CHF | 300 | 06/21/17 | 3 | |||
Bank of America | USD | 783 | EUR | 718 | 05/03/17 | (1 | ) | ||
Bank of America | USD | 430 | EUR | 400 | 06/21/17 | 7 | |||
Bank of America | USD | 2,126 | EUR | 2,000 | 06/21/17 | 58 | |||
Bank of America | USD | 2,145 | EUR | 2,000 | 06/21/17 | 39 | |||
Bank of America | USD | 10,681 | EUR | 10,000 | 06/21/17 | 239 | |||
Bank of America | USD | 29,123 | EUR | 27,000 | 06/21/17 | 361 | |||
Bank of America | USD | 31,931 | EUR | 30,000 | 06/21/17 | 828 | |||
Bank of America | USD | 620 | GBP | 500 | 06/21/17 | 29 | |||
Bank of America | USD | 625 | GBP | 500 | 06/21/17 | 24 | |||
Bank of America | USD | 3,671 | GBP | 3,000 | 06/21/17 | 220 | |||
Bank of America | USD | 10,989 | GBP | 9,000 | 06/21/17 | 684 | |||
Bank of America | USD | 258 | HKD | 2,000 | 06/21/17 | — |
See accompanying notes which are an integral part of the financial statements.
150 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 2,063 | HKD | 16,000 | 06/21/17 | (4 | ) |
Bank of America | USD | 2,966 | HKD | 23,000 | 06/21/17 | (6 | ) |
Bank of America | USD | 262 | JPY | 29,167 | 05/01/17 | — | |
Bank of America | USD | 370 | JPY | 41,282 | 05/01/17 | — | |
Bank of America | USD | 5,840 | JPY | 651,480 | 05/01/17 | 4 | |
Bank of America | USD | 899 | JPY | 100,000 | 06/21/17 | — | |
Bank of America | USD | 902 | JPY | 100,000 | 06/21/17 | (3 | ) |
Bank of America | USD | 1,848 | JPY | 200,000 | 06/21/17 | (50 | ) |
Bank of America | USD | 3,499 | JPY | 400,000 | 06/21/17 | 96 | |
Bank of America | USD | 14,864 | JPY | 1,700,000 | 06/21/17 | 416 | |
Bank of America | USD | 17,731 | JPY | 2,000,000 | 06/21/17 | 246 | |
Bank of America | AUD | 100 | USD | 75 | 06/21/17 | 1 | |
Bank of America | AUD | 300 | USD | 230 | 06/21/17 | 5 | |
Bank of America | AUD | 700 | USD | 531 | 06/21/17 | 7 | |
Bank of America | AUD | 3,000 | USD | 2,273 | 06/21/17 | 28 | |
Bank of America | AUD | 4,000 | USD | 3,031 | 06/21/17 | 38 | |
Bank of America | CAD | 200 | USD | 149 | 06/21/17 | 3 | |
Bank of America | CAD | 1,000 | USD | 752 | 06/21/17 | 19 | |
Bank of America | CAD | 2,500 | USD | 1,862 | 06/21/17 | 29 | |
Bank of America | CAD | 5,000 | USD | 3,724 | 06/21/17 | 58 | |
Bank of America | EUR | 1,000 | USD | 1,063 | 06/21/17 | (29 | ) |
Bank of America | EUR | 1,000 | USD | 1,076 | 06/21/17 | (16 | ) |
Bank of America | EUR | 1,000 | USD | 1,081 | 06/21/17 | (11 | ) |
Bank of America | EUR | 3,000 | USD | 3,202 | 06/21/17 | (73 | ) |
Bank of America | GBP | 100 | USD | 129 | 06/21/17 | (1 | ) |
Bank of America | GBP | 1,000 | USD | 1,259 | 06/21/17 | (38 | ) |
Bank of America | GBP | 1,500 | USD | 1,835 | 06/21/17 | (110 | ) |
Bank of America | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Bank of America | HKD | 3,000 | USD | 387 | 06/21/17 | — | |
Bank of America | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | |
Bank of America | JPY | 100,000 | USD | 904 | 06/21/17 | 5 | |
Bank of America | JPY | 200,000 | USD | 1,840 | 06/21/17 | 43 | |
Bank of America | JPY | 600,000 | USD | 5,249 | 06/21/17 | (144 | ) |
Bank of America | SEK | 6,000 | USD | 672 | 06/21/17 | (7 | ) |
Bank of Montreal | USD | 1,950 | AUD | 2,553 | 06/21/17 | (41 | ) |
Bank of Montreal | USD | 6,896 | AUD | 9,025 | 06/21/17 | (144 | ) |
Bank of Montreal | USD | 10,407 | AUD | 13,620 | 06/21/17 | (217 | ) |
Bank of Montreal | USD | 2,518 | CAD | 3,358 | 06/21/17 | (56 | ) |
Bank of Montreal | USD | 8,564 | CAD | 11,420 | 06/21/17 | (192 | ) |
Bank of Montreal | USD | 10,302 | CAD | 13,738 | 06/21/17 | (231 | ) |
Bank of Montreal | USD | 12,299 | EUR | 11,623 | 06/21/17 | 393 | |
Bank of Montreal | USD | 4,220 | GBP | 3,428 | 06/21/17 | 226 | |
Bank of Montreal | USD | 9,549 | GBP | 7,756 | 06/21/17 | 510 | |
Bank of Montreal | USD | 1,152 | HKD | 8,930 | 06/21/17 | (2 | ) |
Bank of Montreal | USD | 4,958 | HKD | 38,440 | 06/21/17 | (10 | ) |
Bank of Montreal | USD | 5,757 | JPY | 653,516 | 06/21/17 | 117 | |
Bank of Montreal | USD | 12,160 | JPY | 1,380,320 | 06/21/17 | 247 | |
Bank of Montreal | USD | 977 | SEK | 8,800 | 06/21/17 | 19 | |
Bank of Montreal | AUD | 700 | USD | 537 | 06/21/17 | 14 | |
Bank of Montreal | CAD | 1,000 | USD | 750 | 06/21/17 | 17 | |
Bank of Montreal | CHF | 984 | USD | 980 | 06/21/17 | (12 | ) |
Bank of Montreal | DKK | 3,400 | USD | 484 | 06/21/17 | (15 | ) |
Bank of Montreal | EUR | 1,442 | USD | 1,526 | 06/21/17 | (49 | ) |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 151
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of Montreal | EUR | 3,000 | USD | 3,257 | 06/21/17 | (19 | ) |
Bank of Montreal | EUR | 24,234 | USD | 25,643 | 06/21/17 | (821 | ) |
Bank of Montreal | GBP | 1,000 | USD | 1,252 | 06/21/17 | (45 | ) |
Bank of Montreal | GBP | 8,380 | USD | 10,318 | 06/21/17 | (552 | ) |
Bank of Montreal | HKD | 2,000 | USD | 258 | 06/21/17 | 1 | |
Bank of Montreal | HKD | 47,768 | USD | 6,160 | 06/21/17 | 13 | |
Bank of Montreal | JPY | 200,000 | USD | 1,797 | 06/21/17 | — | |
Bank of Montreal | JPY | 1,119,200 | USD | 9,859 | 06/21/17 | (200 | ) |
Bank of Montreal | NOK | 16,080 | USD | 1,910 | 06/21/17 | 36 | |
BNP Paribas | USD | 1,932 | AUD | 2,553 | 06/21/17 | (23 | ) |
BNP Paribas | USD | 6,832 | AUD | 9,025 | 06/21/17 | (80 | ) |
BNP Paribas | USD | 10,310 | AUD | 13,620 | 06/21/17 | (120 | ) |
BNP Paribas | USD | 2,513 | CAD | 3,358 | 06/21/17 | (51 | ) |
BNP Paribas | USD | 8,544 | CAD | 11,420 | 06/21/17 | (172 | ) |
BNP Paribas | USD | 10,278 | CAD | 13,738 | 06/21/17 | (207 | ) |
BNP Paribas | USD | 12,268 | EUR | 11,623 | 06/21/17 | 425 | |
BNP Paribas | USD | 4,218 | GBP | 3,428 | 06/21/17 | 228 | |
BNP Paribas | USD | 9,544 | GBP | 7,756 | 06/21/17 | 515 | |
BNP Paribas | USD | 1,152 | HKD | 8,930 | 06/21/17 | (2 | ) |
BNP Paribas | USD | 4,957 | HKD | 38,440 | 06/21/17 | (10 | ) |
BNP Paribas | USD | 5,735 | JPY | 653,516 | 06/21/17 | 139 | |
BNP Paribas | USD | 12,113 | JPY | 1,380,320 | 06/21/17 | 294 | |
BNP Paribas | USD | 975 | SEK | 8,800 | 06/21/17 | 21 | |
BNP Paribas | CHF | 984 | USD | 976 | 06/21/17 | (15 | ) |
BNP Paribas | DKK | 3,400 | USD | 483 | 06/21/17 | (16 | ) |
BNP Paribas | EUR | 625 | USD | 680 | 05/02/17 | (1 | ) |
BNP Paribas | EUR | 1,442 | USD | 1,522 | 06/21/17 | (53 | ) |
BNP Paribas | EUR | 24,234 | USD | 25,577 | 06/21/17 | (887 | ) |
BNP Paribas | GBP | 2,000 | USD | 2,563 | 06/21/17 | (31 | ) |
BNP Paribas | GBP | 8,380 | USD | 10,313 | 06/21/17 | (557 | ) |
BNP Paribas | HKD | 47,768 | USD | 6,160 | 06/21/17 | 13 | |
BNP Paribas | JPY | 1,119,200 | USD | 9,821 | 06/21/17 | (238 | ) |
BNP Paribas | NOK | 16,080 | USD | 1,899 | 06/21/17 | 25 | |
Brown Brothers Harriman | USD | 29,297 | CHF | 29,000 | 06/21/17 | (63 | ) |
Brown Brothers Harriman | USD | 13,628 | GBP | 11,000 | 06/21/17 | 638 | |
Brown Brothers Harriman | USD | 645 | HKD | 5,000 | 06/21/17 | (1 | ) |
Brown Brothers Harriman | USD | 4,902 | HKD | 38,000 | 06/21/17 | (12 | ) |
Brown Brothers Harriman | USD | 8,874 | JPY | 1,000,000 | 06/21/17 | 114 | |
Brown Brothers Harriman | USD | 9,454 | NOK | 80,400 | 06/21/17 | (84 | ) |
Brown Brothers Harriman | USD | 5,691 | SEK | 50,000 | 06/21/17 | (31 | ) |
Brown Brothers Harriman | AUD | 18,000 | USD | 13,794 | 06/21/17 | 328 | |
Brown Brothers Harriman | EUR | 17,000 | USD | 18,328 | 06/21/17 | (236 | ) |
Citigroup | USD | 383 | AUD | 500 | 06/21/17 | (9 | ) |
Citigroup | USD | 1,510 | AUD | 2,000 | 06/21/17 | (14 | ) |
Citigroup | USD | 451 | CAD | 600 | 06/21/17 | (11 | ) |
Citigroup | USD | 1,857 | CAD | 2,500 | 06/21/17 | (24 | ) |
Citigroup | USD | 2,168 | EUR | 2,000 | 06/21/17 | 16 | |
Citigroup | USD | 8,525 | EUR | 8,000 | 06/21/17 | 211 | |
Citigroup | USD | 1,251 | GBP | 1,000 | 06/21/17 | 46 | |
Citigroup | USD | 3,655 | GBP | 3,000 | 06/21/17 | 236 | |
Citigroup | USD | 258 | HKD | 2,000 | 06/21/17 | (1 | ) |
Citigroup | USD | 774 | HKD | 6,000 | 06/21/17 | (2 | ) |
Citigroup | USD | 1,536 | JPY | 170,000 | 06/21/17 | (8 | ) |
See accompanying notes which are an integral part of the financial statements.
152 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Citigroup | USD | 3,502 | JPY | 400,000 | 06/21/17 | 93 | |
Citigroup | AUD | 200 | USD | 150 | 06/21/17 | 1 | |
Citigroup | AUD | 700 | USD | 527 | 06/21/17 | 4 | |
Citigroup | AUD | 800 | USD | 615 | 06/21/17 | 17 | |
Citigroup | CAD | 100 | USD | 74 | 06/21/17 | 1 | |
Citigroup | CAD | 300 | USD | 224 | 06/21/17 | 4 | |
Citigroup | CAD | 800 | USD | 597 | 06/21/17 | 10 | |
Citigroup | CAD | 950 | USD | 713 | 06/21/17 | 17 | |
Citigroup | EUR | 300 | USD | 322 | 06/21/17 | (5 | ) |
Citigroup | EUR | 2,000 | USD | 2,143 | 06/21/17 | (41 | ) |
Citigroup | EUR | 2,700 | USD | 2,884 | 06/21/17 | (64 | ) |
Citigroup | EUR | 2,800 | USD | 3,021 | 06/21/17 | (36 | ) |
Citigroup | GBP | 100 | USD | 128 | 06/21/17 | (1 | ) |
Citigroup | GBP | 300 | USD | 374 | 06/21/17 | (15 | ) |
Citigroup | GBP | 600 | USD | 751 | 06/21/17 | (27 | ) |
Citigroup | GBP | 700 | USD | 875 | 06/21/17 | (33 | ) |
Citigroup | GBP | 1,100 | USD | 1,366 | 06/21/17 | (60 | ) |
Citigroup | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Citigroup | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Citigroup | HKD | 2,000 | USD | 258 | 06/21/17 | — | |
Citigroup | HKD | 3,500 | USD | 452 | 06/21/17 | 1 | |
Citigroup | JPY | 20,000 | USD | 181 | 06/21/17 | 1 | |
Citigroup | JPY | 30,000 | USD | 271 | 06/21/17 | 1 | |
Citigroup | JPY | 100,000 | USD | 917 | 06/21/17 | 18 | |
Citigroup | JPY | 175,000 | USD | 1,584 | 06/21/17 | 11 | |
Citigroup | JPY | 200,000 | USD | 1,782 | 06/21/17 | (15 | ) |
Commonwealth Bank of Australia | USD | 1,948 | AUD | 2,553 | 06/21/17 | (38 | ) |
Commonwealth Bank of Australia | USD | 6,888 | AUD | 9,025 | 06/21/17 | (136 | ) |
Commonwealth Bank of Australia | USD | 10,395 | AUD | 13,620 | 06/21/17 | (205 | ) |
Commonwealth Bank of Australia | USD | 2,519 | CAD | 3,358 | 06/21/17 | (57 | ) |
Commonwealth Bank of Australia | USD | 8,565 | CAD | 11,420 | 06/21/17 | (193 | ) |
Commonwealth Bank of Australia | USD | 10,303 | CAD | 13,738 | 06/21/17 | (232 | ) |
Commonwealth Bank of Australia | USD | 12,306 | EUR | 11,623 | 06/21/17 | 386 | |
Commonwealth Bank of Australia | USD | 4,220 | GBP | 3,428 | 06/21/17 | 225 | |
Commonwealth Bank of Australia | USD | 9,550 | GBP | 7,756 | 06/21/17 | 510 | |
Commonwealth Bank of Australia | USD | 1,152 | HKD | 8,930 | 06/21/17 | (3 | ) |
Commonwealth Bank of Australia | USD | 4,958 | HKD | 38,440 | 06/21/17 | (11 | ) |
Commonwealth Bank of Australia | USD | 5,760 | JPY | 653,516 | 06/21/17 | 114 | |
Commonwealth Bank of Australia | USD | 12,166 | JPY | 1,380,320 | 06/21/17 | 241 | |
Commonwealth Bank of Australia | USD | 977 | SEK | 8,800 | 06/21/17 | 19 | |
Commonwealth Bank of Australia | CHF | 984 | USD | 980 | 06/21/17 | (12 | ) |
Commonwealth Bank of Australia | DKK | 3,400 | USD | 484 | 06/21/17 | (15 | ) |
Commonwealth Bank of Australia | EUR | 1,442 | USD | 1,526 | 06/21/17 | (48 | ) |
Commonwealth Bank of Australia | EUR | 24,234 | USD | 25,658 | 06/21/17 | (805 | ) |
Commonwealth Bank of Australia | GBP | 8,380 | USD | 10,319 | 06/21/17 | (550 | ) |
Commonwealth Bank of Australia | HKD | 47,768 | USD | 6,161 | 06/21/17 | 14 | |
Commonwealth Bank of Australia | JPY | 1,119,200 | USD | 9,864 | 06/21/17 | (195 | ) |
Commonwealth Bank of Australia | NOK | 16,080 | USD | 1,911 | 06/21/17 | 37 | |
Royal Bank of Canada | USD | 1,935 | AUD | 2,553 | 06/21/17 | (25 | ) |
Royal Bank of Canada | USD | 6,841 | AUD | 9,025 | 06/21/17 | (90 | ) |
Royal Bank of Canada | USD | 10,325 | AUD | 13,620 | 06/21/17 | (135 | ) |
Royal Bank of Canada | USD | 2,513 | CAD | 3,358 | 06/21/17 | (51 | ) |
Royal Bank of Canada | USD | 8,547 | CAD | 11,420 | 06/21/17 | (175 | ) |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 153
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Royal Bank of Canada | USD | 10,282 | CAD | 13,738 | 06/21/17 | (210 | ) |
Royal Bank of Canada | USD | 12,273 | EUR | 11,623 | 06/21/17 | 420 | |
Royal Bank of Canada | USD | 4,217 | GBP | 3,428 | 06/21/17 | 229 | |
Royal Bank of Canada | USD | 9,542 | GBP | 7,756 | 06/21/17 | 518 | |
Royal Bank of Canada | USD | 1,152 | HKD | 8,930 | 06/21/17 | (3 | ) |
Royal Bank of Canada | USD | 4,958 | HKD | 38,440 | 06/21/17 | (11 | ) |
Royal Bank of Canada | USD | 5,743 | JPY | 653,516 | 06/21/17 | 131 | |
Royal Bank of Canada | USD | 12,131 | JPY | 1,380,320 | 06/21/17 | 276 | |
Royal Bank of Canada | USD | 977 | SEK | 8,800 | 06/21/17 | 19 | |
Royal Bank of Canada | CHF | 984 | USD | 978 | 06/21/17 | (14 | ) |
Royal Bank of Canada | DKK | 3,400 | USD | 484 | 06/21/17 | (16 | ) |
Royal Bank of Canada | EUR | 1,442 | USD | 1,522 | 06/21/17 | (52 | ) |
Royal Bank of Canada | EUR | 24,234 | USD | 25,588 | 06/21/17 | (876 | ) |
Royal Bank of Canada | GBP | 8,380 | USD | 10,310 | 06/21/17 | (560 | ) |
Royal Bank of Canada | HKD | 47,768 | USD | 6,161 | 06/21/17 | 14 | |
Royal Bank of Canada | JPY | 1,119,200 | USD | 9,836 | 06/21/17 | (224 | ) |
Royal Bank of Canada | NOK | 16,080 | USD | 1,902 | 06/21/17 | 28 | |
Standard Chartered | USD | 1,950 | AUD | 2,553 | 06/21/17 | (40 | ) |
Standard Chartered | USD | 6,894 | AUD | 9,025 | 06/21/17 | (142 | ) |
Standard Chartered | USD | 10,404 | AUD | 13,620 | 06/21/17 | (214 | ) |
Standard Chartered | USD | 2,519 | CAD | 3,358 | 06/21/17 | (57 | ) |
Standard Chartered | USD | 8,565 | CAD | 11,420 | 06/21/17 | (193 | ) |
Standard Chartered | USD | 10,303 | CAD | 13,738 | 06/21/17 | (232 | ) |
Standard Chartered | USD | 12,298 | EUR | 11,623 | 06/21/17 | 395 | |
Standard Chartered | USD | 4,219 | GBP | 3,428 | 06/21/17 | 227 | |
Standard Chartered | USD | 9,546 | GBP | 7,756 | 06/21/17 | 513 | |
Standard Chartered | USD | 1,152 | HKD | 8,930 | 06/21/17 | (3 | ) |
Standard Chartered | USD | 4,958 | HKD | 38,440 | 06/21/17 | (11 | ) |
Standard Chartered | USD | 5,756 | JPY | 653,516 | 06/21/17 | 118 | |
Standard Chartered | USD | 12,157 | JPY | 1,380,320 | 06/21/17 | 250 | |
Standard Chartered | USD | 977 | SEK | 8,800 | 06/21/17 | 19 | |
Standard Chartered | CHF | 984 | USD | 980 | 06/21/17 | (12 | ) |
Standard Chartered | DKK | 3,400 | USD | 484 | 06/21/17 | (15 | ) |
Standard Chartered | EUR | 1,442 | USD | 1,525 | 06/21/17 | (49 | ) |
Standard Chartered | EUR | 24,234 | USD | 25,640 | 06/21/17 | (822 | ) |
Standard Chartered | GBP | 8,380 | USD | 10,315 | 06/21/17 | (555 | ) |
Standard Chartered | HKD | 47,768 | USD | 6,161 | 06/21/17 | 14 | |
Standard Chartered | JPY | 1,119,200 | USD | 9,857 | 06/21/17 | (202 | ) |
Standard Chartered | NOK | 16,080 | USD | 1,909 | 06/21/17 | 35 | |
State Street | USD | 224 | CAD | 300 | 06/21/17 | (4 | ) |
State Street | USD | 429 | EUR | 400 | 06/21/17 | 8 | |
State Street | USD | 641 | EUR | 600 | 06/21/17 | 14 | |
State Street | USD | 375 | GBP | 300 | 06/21/17 | 14 | |
State Street | USD | 163 | HKD | 1,268 | 05/02/17 | — | |
State Street | USD | 675 | JPY | 75,168 | 05/01/17 | (1 | ) |
State Street | USD | 819 | JPY | 91,349 | 05/02/17 | 1 | |
State Street | USD | 723 | JPY | 80,000 | 06/21/17 | (4 | ) |
State Street | USD | 885 | SEK | 7,808 | 05/02/17 | (4 | ) |
State Street | AUD | 200 | USD | 154 | 06/21/17 | 5 | |
State Street | AUD | 4,000 | USD | 3,006 | 06/21/17 | 14 | |
State Street | AUD | 11,000 | USD | 8,318 | 06/21/17 | 88 | |
State Street | CAD | 300 | USD | 225 | 06/21/17 | 5 | |
State Street | CAD | 5,000 | USD | 3,710 | 06/21/17 | 45 |
See accompanying notes which are an integral part of the financial statements.
154 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Amount | Amount | (Depreciation) | |||||||||||||||
Counterparty | Sold | Bought | Settlement Date | $ | |||||||||||||
State Street | CAD | 14,000 | USD | 10,428 | 06/21/17 | 165 | |||||||||||
State Street | EUR | 107 | USD | 116 | 05/02/17 | (1 | ) | ||||||||||
State Street | EUR | 1,000 | USD | 1,079 | 06/21/17 | (13 | ) | ||||||||||
State Street | EUR | 19,000 | USD | 20,128 | 06/21/17 | (619 | ) | ||||||||||
State Street | EUR | 48,000 | USD | 51,370 | 06/21/17 | (1,046 | ) | ||||||||||
State Street | GBP | 400 | USD | 495 | 06/21/17 | (23 | ) | ||||||||||
State Street | GBP | 5,000 | USD | 6,098 | 06/21/17 | (387 | ) | ||||||||||
State Street | GBP | 15,000 | USD | 18,385 | 06/21/17 | (1,071 | ) | ||||||||||
State Street | HKD | 1,000 | USD | 129 | 06/21/17 | — | |||||||||||
State Street | HKD | 14,000 | USD | 1,804 | 06/21/17 | 3 | |||||||||||
State Street | HKD | 35,000 | USD | 4,515 | 06/21/17 | 10 | |||||||||||
State Street | JPY | 10,000 | USD | 89 | 06/21/17 | (1 | ) | ||||||||||
State Street | JPY | 1,000,000 | USD | 8,784 | 06/21/17 | (204 | ) | ||||||||||
State Street | JPY | 2,700,000 | USD | 23,614 | 06/21/17 | (654 | ) | ||||||||||
UBS | USD | 2,440 | DKK | 17,000 | 06/21/17 | 56 | |||||||||||
UBS | USD | 6,156 | SEK | 55,000 | 06/21/17 | 69 | |||||||||||
UBS | EUR | 10,000 | USD | 10,663 | 06/21/17 | (257 | ) | ||||||||||
UBS | HKD | 20,000 | USD | 2,579 | 06/21/17 | 5 | |||||||||||
UBS | JPY | 500,000 | USD | 4,408 | 06/21/17 | (86 | ) | ||||||||||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (4,551 | ) | |||||||||||||||
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Argentina | $ | 2,722 | $ | — | $ | — | $ | — | $ | 2,722 | 0.1 | ||||||
Australia | — | 74,524 | 8 | — | 74,532 | 3.0 | |||||||||||
Austria | — | 9,377 | — | — | 9,377 | 0.4 | |||||||||||
Belgium | — | 31,723 | — | — | 31,723 | 1.3 | |||||||||||
Bermuda | 4,924 | — | — | — | 4,924 | 0.2 | |||||||||||
Brazil | 23,565 | — | — | — | 23,565 | 1.0 | |||||||||||
Canada | 88,950 | — | — | — | 88,950 | 3.6 | |||||||||||
Cayman Islands | 5,803 | 17,782 | — | — | 23,585 | 1.0 | |||||||||||
Chile | 1,974 | — | — | — | 1,974 | 0.1 | |||||||||||
China | 10,967 | 8,095 | — | — | 19,062 | 0.8 | |||||||||||
Colombia | 1,881 | — | — | — | 1,881 | 0.1 | |||||||||||
Czech Republic | — | 779 | — | — | 779 | —* | |||||||||||
Denmark | — | 26,512 | — | — | 26,512 | 1.1 | |||||||||||
Finland | — | 10,639 | — | — | 10,639 | 0.4 | |||||||||||
France | — | 237,874 | — | — | 237,874 | 9.6 | |||||||||||
Germany | 7,204 | 191,412 | — | — | 198,616 | 8.0 | |||||||||||
Hong Kong | — | 54,743 | — | — | 54,743 | 2.2 | |||||||||||
India | 10,910 | — | — | — | 10,910 | 0.4 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 155
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||||
Amounts in thousands | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Practical | |||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||||
Ireland | 8,895 | 14,358 | — | — | 23,253 | 0.9 | |||||||||||||
Israel | 6,716 | 7,201 | — | — | 13,917 | 0.6 | |||||||||||||
Italy | — | 79,909 | — | — | 79,909 | 3.2 | |||||||||||||
Japan | — | 396,558 | — | — | 396,558 | 16.0 | |||||||||||||
Jersey | — | 3,957 | — | — | 3,957 | 0.2 | |||||||||||||
Luxembourg | — | 6,320 | — | — | 6,320 | 0.3 | |||||||||||||
Macao | — | 7,359 | — | — | 7,359 | 0.3 | |||||||||||||
Malaysia | — | 4,104 | — | — | 4,104 | 0.2 | |||||||||||||
Netherlands | 12,809 | 93,342 | — | — | 106,151 | 4.3 | |||||||||||||
Norway | — | 4,949 | — | — | 4,949 | 0.2 | |||||||||||||
Portugal | — | 8,277 | — | — | 8,277 | 0.3 | |||||||||||||
Russia | — | 25,892 | — | — | 25,892 | 1.0 | |||||||||||||
Singapore | — | 29,427 | — | — | 29,427 | 1.2 | |||||||||||||
South Korea | 362 | 60,320 | — | — | 60,682 | 2.5 | |||||||||||||
Spain | — | 64,723 | — | — | 64,723 | 2.6 | |||||||||||||
Sweden | — | 46,606 | — | — | 46,606 | 1.9 | |||||||||||||
Switzerland | — | 161,424 | — | — | 161,424 | 6.5 | |||||||||||||
Taiwan | — | 10,430 | — | — | 10,430 | 0.4 | |||||||||||||
Thailand | — | 3,525 | — | — | 3,525 | 0.1 | |||||||||||||
United Kingdom | 19,568 | 376,333 | — | — | 395,901 | 16.0 | |||||||||||||
United States | 60,287 | 7,652 | — | — | 67,939 | 2.7 | |||||||||||||
Preferred Stocks | — | 18,998 | — | — | 18,998 | 0.8 | |||||||||||||
Short-Term Investments | — | 29,767 | — | 81,110 | 110,877 | 4.5 | |||||||||||||
Other Securities | — | — | — | 101,513 | 101,513 | 4.1 | |||||||||||||
Total Investments | 267,537 | 2,124,891 | 8 | 182,623 | 2,575,059 | 104.1 | |||||||||||||
Other Assets and Liabilities, Net | (4.1 | ) | |||||||||||||||||
100.0 | |||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Futures Contracts | 5,811 | — | — | — | 5,811 | 0.2 | |||||||||||||
Foreign Currency Exchange Contracts | 5 | 13,762 | — | — | 13,767 | 0.6 | |||||||||||||
A | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Futures Contracts | (3,050 | ) | — | — | — | (3,050 | ) | (0.1 | ) | ||||||||||
Foreign Currency Exchange Contracts | (7 | ) | (18,311 | ) | — | — | (18,318 | ) | (0.7 | ) | |||||||||
Total Other Financial Instruments** | $ | 2,759 | $ | (4,549 | ) | $ | — | $ | — | $ | (1,790 | ) |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
See accompanying notes which are an integral part of the financial statements.
156 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
Amounts in thousands | |||
Fair Value | |||
Sector Exposure | $ | ||
Consumer Discretionary | 292,384 | ||
Consumer Staples | 180,749 | ||
Energy | 152,724 | ||
Financial Services | 641,941 | ||
Health Care | 205,870 | ||
Materials and Processing | 232,698 | ||
Producer Durables | 259,781 | ||
Technology | 248,934 | ||
Utilities | 147,588 | ||
Short-Term Investments | 110,877 | ||
Other Securities | 101,513 | ||
Total Investments | 2,575,059 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 157
Russell Investment Company
International Developed Markets Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | |||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 13,767 | |||
Variation margin on futures contracts* | 5,811 | — | |||||
Total | $ | 5,811 | $ | 13,767 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||
Variation margin on futures contracts* | $ | 3,050 | $ | — | |||
Unrealized depreciation on foreign currency exchange contracts | — | 18,318 | |||||
Total | $ | 3,050 | $ | 18,318 | |||
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | |||||||
Investments** | $ | (8,829 | ) | $ | — | ||
Futures contracts | 15,663 | — | |||||
Options written | 1,216 | — | |||||
Foreign currency-related transactions*** | — | (2,276 | ) | ||||
Total | $ | 8,050 | $ | (2,276 | ) | ||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||||
Futures contracts | $ | (4,755 | ) | $ | — | ||
Foreign currency-related transactions**** | — | 1,036 | |||||
Total | $ | (4,755 | ) | $ | 1,036 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
*** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
**** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
158 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Assets | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||
Securities on Loan* | Investments, at fair value | $ | 96,819 | $ | — $ | 96,819 | ||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 13,767 | — | 13,767 | ||||||
Futures Contracts | Variation margin on futures contracts | 706 | — | 706 | ||||||
Total Financial and Derivative Assets | 111,292 | — | 111,292 | |||||||
Financial and Derivative Assets not subject to a netting agreement | (713 | ) | — | (713 | ) | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 110,579 | $ | — $ | 110,579 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Assets | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||
Bank of America | $ | 3,488 | $ | 592 | $ | — | $ | 2,896 | |||
Bank of Montreal | 1,593 | 1,593 | — | — | |||||||
Barclays | 3,122 | — | 3,122 | — | |||||||
BNP Paribas | 1,659 | 1,659 | — | — | |||||||
Brown Brothers Harriman | 1,080 | 428 | — | 652 | |||||||
Citigroup | 22,371 | 366 | 21,683 | 322 | |||||||
Commonwealth Bank of Australia | 1,546 | 1,546 | — | — | |||||||
Goldman Sachs | 42,588 | — | 42,588 | — | |||||||
HSBC | 852 | — | 852 | — | |||||||
JPMorgan Chase | 18,010 | — | 18,010 | — | |||||||
Merrill Lynch | 1,797 | — | 1,797 | — | |||||||
Royal Bank of Canada | 1,634 | 1,634 | — | — | |||||||
Societe Generale | 8,768 | — | 8,768 | — | |||||||
Standard Chartered | 1,571 | 1,571 | — | — | |||||||
State Street | 370 | 370 | — | — | |||||||
UBS | 130 | 130 | — | — | |||||||
Total | $ | 110,579 | $ | 9,889 | $ | 96,820 | $ | 3,870 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 159
Russell Investment Company
International Developed Markets Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 934 | $ | — $ | 934 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 18,318 | — | 18,318 | |||||
Total Financial and Derivative Liabilities | 19,252 | — | 19,252 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (943 | ) | — | (943 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 18,309 | $ | — $ | 18,309 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 592 | $ | 592 | $ | — | $ — | ||
Bank of Montreal | 2,606 | 1,593 | — | 1,013 | |||||
BNP Paribas | 2,461 | 1,659 | — | 802 | |||||
Brown Brothers Harriman | 428 | 428 | — | — | |||||
Citigroup | 366 | 366 | — | — | |||||
Commonwealth Bank of Australia | 2,500 | 1,546 | — | 954 | |||||
Royal Bank of Canada | 2,441 | 1,634 | — | 807 | |||||
Standard Chartered | 2,547 | 1,571 | — | 976 | |||||
State Street | 4,024 | 370 | — | 3,654 | |||||
UBS | 344 | 130 | — | 214 | |||||
Total | $ | 18,309 | $ | 9,889 | $ | — | $ 8,420 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
160 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 2,431,055 |
Investments, at fair value(*)(>) | 2,575,059 | |
Foreign currency holdings(^) | 4,542 | |
Unrealized appreciation on foreign currency exchange contracts | 13,767 | |
Receivables: | ||
Dividends and interest | 9,118 | |
Dividends from affiliated funds | 63 | |
Investments sold | 11,240 | |
Fund shares sold | 2,690 | |
Foreign capital gains taxes recoverable | 2,598 | |
Variation margin on futures contracts | 706 | |
Prepaid expenses | 26 | |
Total assets | 2,619,809 | |
Liabilities | ||
Payables: | ||
Due to custodian | 29 | |
Investments purchased | 19,952 | |
Fund shares redeemed | 2,638 | |
Accrued fees to affiliates | 1,844 | |
Other accrued expenses | 801 | |
Variation margin on futures contracts | 934 | |
Deferred capital gains tax liability | 2 | |
Unrealized depreciation on foreign currency exchange contracts | 18,318 | |
Payable upon return of securities loaned | 101,513 | |
Total liabilities | 146,031 | |
Net Assets | $ | 2,473,778 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 161
Russell Investment Company
International Developed Markets Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 16,331 | |
Accumulated net realized gain (loss) | (196,571 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 144,002 | ||
Futures contracts | 2,761 | ||
Foreign currency-related transactions | (4,461 | ) | |
Shares of beneficial interest | 667 | ||
Additional paid-in capital | 2,511,049 | ||
Net Assets | $ | 2,473,778 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 37.02 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 39.28 | |
Class A — Net assets | $ | 28,192,379 | |
Class A — Shares outstanding ($.01 par value) | 761,550 | ||
Net asset value per share: Class C(#) | $ | 37.13 | |
Class C — Net assets | $ | 26,483,892 | |
Class C — Shares outstanding ($.01 par value) | 713,348 | ||
Net asset value per share: Class E(#) | $ | 37.14 | |
Class E — Net assets | $ | 4,609,808 | |
Class E — Shares outstanding ($.01 par value) | 124,106 | ||
Net asset value per share: Class I(#) | $ | 37.10 | |
Class I — Net assets | $ | 421,424,556 | |
Class I — Shares outstanding ($.01 par value) | 11,359,231 | ||
Net asset value per share: Class S(#) | $ | 37.06 | |
Class S — Net assets | $ 1,950,490,584 | ||
Class S — Shares outstanding ($.01 par value) | 52,635,073 | ||
Net asset value per share: Class T(#) | $ | 37.06 | |
Class T — Net assets | $ | 3,241,129 | |
Class T — Shares outstanding ($.01 par value) | 87,453 | ||
Net asset value per share: Class Y(#) | $ | 37.07 | |
Class Y — Net assets | $ | 39,335,682 | |
Class Y — Shares outstanding ($.01 par value) | 1,060,977 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 4,508 | |
(*) Securities on loan included in investments | $ | 96,819 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 182,623 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
162 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 29,437 | |
Dividends from affiliated funds | 480 | ||
Interest | 66 | ||
Securities lending income (net) | 272 | ||
Securities lending income from affiliated funds (net) | 103 | ||
Less foreign taxes withheld | (2,706 | ) | |
Total investment income | 27,652 | ||
Expenses | |||
Advisory fees | 8,615 | ||
Administrative fees | 594 | ||
Custodian fees | 499 | ||
Distribution fees - Class A | 34 | ||
Distribution fees - Class C | 97 | ||
Transfer agent fees - Class A | 27 | ||
Transfer agent fees - Class C | 26 | ||
Transfer agent fees - Class E | 24 | ||
Transfer agent fees - Class I | 332 | ||
Transfer agent fees - Class S | 1,907 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 1 | ||
Professional fees | 70 | ||
Registration fees | 72 | ||
Shareholder servicing fees - Class C | 33 | ||
Shareholder servicing fees - Class E | 30 | ||
Trustees’ fees | 41 | ||
Printing fees | 107 | ||
Miscellaneous | 12 | ||
Expenses before reductions | 12,521 | ||
Expense reductions | (158 | ) | |
Net expenses | 12,363 | ||
Net investment income (loss) | 15,289 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 85,693 | ||
Futures contracts | 15,663 | ||
Options written | 1,216 | ||
Foreign currency-related transactions | (2,513 | ) | |
Net realized gain (loss) | 100,059 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 158,352 | ||
Futures contracts | (4,755 | ) | |
Foreign currency-related transactions | 1,515 | ||
Net change in unrealized appreciation (depreciation) | 155,112 | ||
Net realized and unrealized gain (loss) | 255,171 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 270,460 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 163
Russell Investment Company
International Developed Markets Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 15,289 | $ | 47,160 | ||
Net realized gain (loss) | 100,059 | (65,478 | ) | |||
Net change in unrealized appreciation (depreciation) | 155,112 | (36,662 | ) | |||
Net increase (decrease) in net assets from operations | 270,460 | (54,980 | ) | |||
Distributions | ||||||
From net investment income | ||||||
Class A | (544 | ) | (311 | ) | ||
Class C | (325 | ) | (76 | ) | ||
Class E | (1,001 | ) | (453 | ) | ||
Class I | (11,271 | ) | (7,876 | ) | ||
Class S | (43,224 | ) | (27,310 | ) | ||
Class Y | (319 | ) | (217 | ) | ||
Net decrease in net assets from distributions | (56,684 | ) | (36,243 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (215,327 | ) | (241,975 | ) | ||
Total Net Increase (Decrease) in Net Assets | (1,551 | ) | (333,198 | ) | ||
Net Assets | ||||||
Beginning of period | 2,475,329 | 2,808,527 | ||||
End of period | $ | 2,473,778 | $ | 2,475,329 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 16,331 | $ | 57,726 |
See accompanying notes which are an integral part of the financial statements.
164 International Developed Markets Fund
Russell Investment Company
International Developed Markets Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 33 | $ | 1,176 | 138 | $ | 4,612 | ||||||
Proceeds from reinvestment of distributions | 16 | 542 | 9 | 309 | ||||||||
Payments for shares redeemed | (85 | ) | (2,985 | ) | (190 | ) | (6,344 | ) | ||||
Net increase (decrease) | (36 | ) | (1,267 | ) | (43 | ) | (1,423 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 33 | 1,136 | 58 | 1,916 | ||||||||
Proceeds from reinvestment of distributions | 9 | 321 | 2 | 75 | ||||||||
Payments for shares redeemed | (117 | ) | (4,074 | ) | (204 | ) | (6,755 | ) | ||||
Net increase (decrease) | (75 | ) | (2,617 | ) | (144 | ) | (4,764 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 43 | 1,462 | 232 | 7,716 | ||||||||
Proceeds from reinvestment of distributions | 29 | 979 | 13 | 440 | ||||||||
Payments for shares redeemed | (1,377 | ) | (47,667 | ) | (300 | ) | (9,983 | ) | ||||
Net increase (decrease) | (1,305 | ) | (45,226 | ) | (55 | ) | (1,827 | ) | ||||
Class I | ||||||||||||
Proceeds from shares sold | 598 | 20,658 | 2,311 | 75,750 | ||||||||
Proceeds from reinvestment of distributions | 332 | 11,156 | 230 | 7,642 | ||||||||
Payments for shares redeemed | (3,680 | ) | (129,837 | ) | (4,889 | ) | (161,258 | ) | ||||
Net increase (decrease) | (2,750 | ) | (98,023 | ) | (2,348 | ) | (77,866 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 8,171 | 285,012 | 12,727 | 420,195 | ||||||||
Proceeds from reinvestment of distributions | 1,279 | 42,902 | 816 | 27,064 | ||||||||
Payments for shares redeemed | (12,098 | ) | (423,949 | ) | (18,267 | ) | (601,983 | ) | ||||
Net increase (decrease) | (2,648 | ) | (96,035 | ) | (4,724 | ) | (154,724 | ) | ||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 88 | 3,166 | — | — | ||||||||
Payments for shares redeemed | (—)* | (17 | ) | — | — | |||||||
Net increase (decrease) | 88 | 3,149 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 702 | 25,174 | 23 | 731 | ||||||||
Proceeds from reinvestment of distributions | 9 | 319 | 6 | 217 | ||||||||
Payments for shares redeemed | (22 | ) | (801 | ) | (69 | ) | (2,319 | ) | ||||
Net increase (decrease) | 689 | 24,692 | (40 | ) | (1,371 | ) | ||||||
Total increase (decrease) | (6,037 | ) | $ | (215,327 | ) | (7,354 | ) | $ | (241,975 | ) |
* Less than 500 shares.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 165
Russell Investment Company
International Developed Markets Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | |||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | |||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | $ | ||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Total Distributions | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 33.92 | .18 | 3.62 | 3.80 | (.70 | ) | (.70 | ) | |||||||||
October 31, 2016 | 34.96 | .55 | (1.21 | ) | (.66 | ) | (.38 | ) | (.38 | ) | |||||||
October 31, 2015 | 35.77 | .53 | (.79 | ) | (.26 | ) | (.55 | ) | (.55 | ) | |||||||
October 31, 2014 | 36.30 | .64 | (.48 | ) | .16 | (.69 | ) | (.69 | ) | ||||||||
October 31, 2013 | 29.68 | .49 | 6.67 | 7.16 | (.54 | ) | (.54 | ) | |||||||||
October 31, 2012 | 28.67 | .52 | .89 | 1.41 | (.40 | ) | (.40 | ) | |||||||||
Class C | |||||||||||||||||
April 30, 2017* | 33.87 | .04 | 3.65 | 3.69 | (.43 | ) | (.43 | ) | |||||||||
October 31, 2016 | 34.86 | .29 | (1.20 | ) | (.91 | ) | (.08 | ) | (.08 | ) | |||||||
October 31, 2015 | 35.62 | .26 | (.78 | ) | (.52 | ) | (.24 | ) | (.24 | ) | |||||||
October 31, 2014 | 36.15 | .37 | (.48 | ) | (.11 | ) | (.42 | ) | (.42 | ) | |||||||
October 31, 2013 | 29.52 | .24 | 6.67 | 6.91 | (.28 | ) | (.28 | ) | |||||||||
October 31, 2012 | 28.46 | .30 | .90 | 1.20 | (.14 | ) | (.14 | ) | |||||||||
Class E | |||||||||||||||||
April 30, 2017* | 34.04 | .01 | 3.80 | 3.81 | (.71 | ) | (.71 | ) | |||||||||
October 31, 2016 | 35.01 | .55 | (1.21 | ) | (.66 | ) | (.31 | ) | (.31 | ) | |||||||
October 31, 2015 | 35.81 | .54 | (.81 | ) | (.27 | ) | (.53 | ) | (.53 | ) | |||||||
October 31, 2014 | 36.33 | .62 | (.45 | ) | .17 | (.69 | ) | (.69 | ) | ||||||||
October 31, 2013 | 29.72 | .49 | 6.68 | 7.17 | (.56 | ) | (.56 | ) | |||||||||
October 31, 2012 | 28.72 | .53 | .90 | 1.43 | (.43 | ) | (.43 | ) | |||||||||
Class I | |||||||||||||||||
April 30, 2017* | 34.06 | .22 | 3.63 | 3.85 | (.81 | ) | (.81 | ) | |||||||||
October 31, 2016 | 35.10 | .65 | (1.20 | ) | (.55 | ) | (.49 | ) | (.49 | ) | |||||||
October 31, 2015 | 35.91 | .66 | (.80 | ) | (.14 | ) | (.67 | ) | (.67 | ) | |||||||
October 31, 2014 | 36.43 | .76 | (.48 | ) | .28 | (.80 | ) | (.80 | ) | ||||||||
October 31, 2013 | 29.77 | .60 | 6.70 | 7.30 | (.64 | ) | (.64 | ) | |||||||||
October 31, 2012 | 28.78 | .61 | .89 | 1.50 | (.51 | ) | (.51 | ) | |||||||||
Class S | |||||||||||||||||
April 30, 2017* | 34.00 | .22 | 3.63 | 3.85 | (.79 | ) | (.79 | ) | |||||||||
October 31, 2016 | 35.04 | .62 | (1.20 | ) | (.58 | ) | (.46 | ) | (.46 | ) | |||||||
October 31, 2015 | 35.86 | .63 | (.81 | ) | (.18 | ) | (.64 | ) | (.64 | ) | |||||||
October 31, 2014 | 36.38 | .71 | (.45 | ) | .26 | (.78 | ) | (.78 | ) | ||||||||
October 31, 2013 | 29.74 | .57 | 6.69 | 7.26 | (.62 | ) | (.62 | ) | |||||||||
October 31, 2012 | 28.75 | .59 | .89 | 1.48 | (.49 | ) | (.49 | ) | |||||||||
Class T | |||||||||||||||||
April 30, 2017(10) | 36.02 | .17 | .87 | 1.04 | — | — | |||||||||||
Class Y | |||||||||||||||||
April 30, 2017* | 34.05 | .35 | 3.53 | 3.88 | (.86 | ) | (.86 | ) | |||||||||
October 31, 2016 | 35.08 | .70 | (1.21 | ) | (.51 | ) | (.52 | ) | (.52 | ) | |||||||
October 31, 2015 | 35.90 | .25 | (.36 | ) | (.11 | ) | (.71 | ) | (.71 | ) | |||||||
October 31, 2014 | 36.41 | .79 | (.46 | ) | .33 | (.84 | ) | (.84 | ) | ||||||||
October 31, 2013 | 29.76 | .63 | 6.69 | 7.32 | (.67 | ) | (.67 | ) | |||||||||
October 31, 2012 | 28.77 | .65 | .88 | 1.53 | (.54 | ) | (.54 | ) | |||||||||
See accompanying notes which are an integral part of the financial statements.
166 International Developed Markets Fund
% | % | % | ||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||
End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||
Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | |||||||
37.02 | 11.41 | 28,192 | 1.26 | 1.26 | 1.02 | 50 | ||||||||
33.92 | (1.87 | ) | 27,053 | 1.23 | 1.23 | 1.66 | 68 | |||||||
34.96 | (.71 | ) | 29,385 | 1.27 | 1.27 | 1.49 | 66 | |||||||
35.77 | .43 | 29,619 | 1.25 | 1.25 | 1.74 | 74 | ||||||||
36.30 | 24.47 | 29,088 | 1.24 | 1.24 | 1.51 | 89 | ||||||||
29.68 | 5.04 | 22,905 | 1.24 | 1.24 | 1.83 | 65 | ||||||||
37.13 | 11.01 | 26,484 | 2.01 | 2.01 | .24 | 50 | ||||||||
33.87 | (2.60 | ) | 26,698 | 1.98 | 1.98 | .88 | 68 | |||||||
34.86 | (1.46 | ) | 32,495 | 2.02 | 2.02 | .72 | 66 | |||||||
35.62 | (.33 | ) | 37,426 | 2.00 | 2.00 | 1.00 | 74 | |||||||
36.15 | 23.53 | 43,136 | 1.99 | 1.99 | .75 | 89 | ||||||||
29.52 | 4.26 | 40,958 | 1.99 | 1.99 | 1.07 | 65 | ||||||||
37.14 | 11.36 | 4,610 | 1.26 | 1.26 | .08 | 50 | ||||||||
34.04 | (1.86 | ) | 48,643 | 1.23 | 1.23 | 1.64 | 68 | |||||||
35.01 | (.72 | ) | 51,939 | 1.27 | 1.27 | 1.51 | 66 | |||||||
35.81 | .46 | 79,957 | 1.25 | 1.25 | 1.69 | 74 | ||||||||
36.33 | 24.48 | 111,467 | 1.24 | 1.23 | 1.51 | 89 | ||||||||
29.72 | 5.11 | 89,772 | 1.24 | 1.19 | 1.87 | 65 | ||||||||
37.10 | 11.57 | 421,424 | .96 | .94 | 1.24 | 50 | ||||||||
34.06 | (1.52 | ) | 480,518 | .90 | .90 | 1.96 | 68 | |||||||
35.10 | (.41 | ) | 577,646 | .94 | .94 | 1.84 | 66 | |||||||
35.91 | .76 | 674,127 | .92 | .92 | 2.05 | 74 | ||||||||
36.43 | 24.87 | 753,290 | .91 | .91 | 1.84 | 89 | ||||||||
29.77 | 5.40 | 672,661 | .91 | .91 | 2.16 | 65 | ||||||||
37.06 | 11.56 | 1,950,491 | 1.01 | 1.00 | 1.26 | 50 | ||||||||
34.00 | (1.61 | ) | 1,879,757 | .98 | .98 | 1.87 | 68 | |||||||
35.04 | (.48 | ) | 2,102,634 | 1.02 | 1.02 | 1.77 | 66 | |||||||
35.86 | .69 | 2,347,214 | 1.00 | 1.00 | 1.92 | 74 | ||||||||
36.38 | 24.76 | 2,740,707 | .99 | .99 | 1.76 | 89 | ||||||||
29.74 | 5.33 | 2,074,313 | .99 | .99 | 2.10 | 65 | ||||||||
37.06 | 2.89 | 3,241 | 1.01 | .87 | 3.86 | 50 | ||||||||
37.07 | 11.68 | 39,336 | .81 | .81 | 2.00 | 50 | ||||||||
34.05 | (1.41 | ) | 12,660 | .78 | .78 | 2.13 | 68 | |||||||
35.08 | (.28 | ) | 14,428 | .81 | .81 | .72 | 66 | |||||||
35.90 | .90 | 934,168 | .80 | .80 | 2.15 | 74 | ||||||||
36.41 | 24.99 | 1,491,711 | .79 | .79 | 1.93 | 89 | ||||||||
29.76 | 5.52 | 1,277,390 | .80 | .80 | 2.30 | 65 |
See accompanying notes which are an integral part of the financial statements.
International Developed Markets Fund 167
Russell Investment Company
International Developed Markets Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 1,394,164 |
Administration fees | 96,110 | |
Distribution fees | 21,774 | |
Shareholder servicing fees | 6,293 | |
Transfer agent fees | 315,505 | |
Trustee fees | 10,189 | |
$ | 1,844,035 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Collateral Fund | $ | 23,803 | $ | 323,045 | $ | 245,335 | $ | — | $ | — | $ 101,513 | $ | 103 | $ | — | ||
U.S. Cash Management Fund | 107,592 | 655,886 | 682,359 | — | (9) | 81,110 | 480 | — | |||||||||
$ | 131,395 | $ | 978,931 | $ | 927,694 | $ | — | $ | (9) | $ 182,623 | $ | 583 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 2,472,848,275 | |||
Unrealized Appreciation | $ | 178,193,349 | |||
Unrealized Depreciation | (75,982,751 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 102,210,598 |
See accompanying notes which are an integral part of the financial statements.
168 International Developed Markets Fund
Russell Investment Company
Global Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,122.30 | $ | 1,017.41 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 7.84 | $ | 7.45 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.49% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,118.50 | $ | 1,013.69 | |
Expenses Paid During Period* | $ | 11.77 | $ | 11.18 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 2.24% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,122.40 | $ | 1,017.46 | |
of other funds. | Expenses Paid During Period* | $ | 7.79 | $ | 7.40 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.48% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Global Equity Fund 169
Russell Investment Company
Global Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,123.80 | $ | 1,018.65 | ||
Expenses Paid During Period* | $ | 6.53 | $ | 6.21 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.24% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,014.10 | $ | 1,019.14 | ||
Expenses Paid During Period* | $ | 1.42 | $ | 5.71 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.14% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
1.14% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,124.70 | $ | 1,019.64 | ||
Expenses Paid During Period* | $ | 5.48 | $ | 5.21 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.04% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
170 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Common Stocks - 96.4% | Tencent Holdings, Ltd. | 338,500 | 10,587 | |||||||
Australia - 1.2% | 29,321 | |||||||||
Aristocrat Leisure, Ltd. | 507,898 | 7,466 | ||||||||
AusNet Services(Æ) | 531,567 | 697 | Chile - 0.1% | |||||||
Australia & New Zealand Banking | Enel Americas SA - ADR | 151,500 | 1,501 | |||||||
Group, Ltd. - ADR | 44,503 | 1,089 | ||||||||
CSL, Ltd. | 12,790 | 1,270 | China - 0.8% | |||||||
Macquarie Group, Ltd. | 140,835 | 9,780 | Alibaba Group Holding, Ltd. - ADR(Æ) | 87,842 | 10,145 | |||||
Scentre Group(ö) | 288,885 | 932 | Gree Electric Appliances, Inc. of Zhuhai | |||||||
Telstra Corp., Ltd. | 187,122 | 592 | Class A | 695,965 | 3,330 | |||||
Washington H Soul Pattinson & Co., Ltd. | 55,772 | 786 | Weibo Corp. - ADR(Æ)(Ñ) | 47,944 | 2,678 | |||||
Woodside Petroleum, Ltd. | 57,578 | 1,386 | Wuliangye Yibin Co., Ltd. Class A | 475,343 | 3,136 | |||||
WorleyParsons, Ltd.(Æ) | 651,300 | 5,516 | 19,289 | |||||||
29,514 | ||||||||||
Denmark - 0.2% | ||||||||||
Austria - 0.3% | Carlsberg A/S Class B | 27,021 | 2,695 | |||||||
Andritz AG | 124,700 | 6,889 | Danske Bank A/S | 24,984 | 907 | |||||
DSV A/S | 36,241 | 2,020 | ||||||||
Belgium - 0.5% | 5,622 | |||||||||
Colruyt SA | 19,391 | 996 | ||||||||
Groupe Bruxelles Lambert SA(Ñ) | 5,535 | 531 | Finland - 0.3% | |||||||
Solvay SA | 61,495 | 7,813 | Caverion Corp.(Æ)(Ñ) | 160,453 | 1,311 | |||||
UCB SA | 24,179 | 1,884 | Kone OYJ Class B | 131,846 | 6,042 | |||||
11,224 | Neste OYJ | 21,908 | 895 | |||||||
8,248 | ||||||||||
Bermuda - 0.1% | ||||||||||
Assured Guaranty, Ltd. | 68,676 | 2,619 | France - 4.7% | |||||||
Axis Capital Holdings, Ltd. | 8,300 | 547 | Airbus Group SE | 70,893 | 5,732 | |||||
China Hongxing Sports, Ltd.(Å)(Æ) | 6,320,000 | — | BNP Paribas SA | 568,789 | 40,116 | |||||
3,166 | Christian Dior SE | 30,968 | 8,508 | |||||||
Cie Generale des Etablissements | ||||||||||
Brazil - 0.6% | Michelin Class B | 65,500 | 8,555 | |||||||
BM&FBovespa SA - Bolsa de Valores | Danone SA(Ñ) | 133,524 | 9,334 | |||||||
Mercadorias e Futuros(Æ) | 616,413 | 3,692 | Engie SA | 85,023 | 1,199 | |||||
Itau Unibanco Holding SA - ADR | 377,930 | 4,649 | Essilor International SA | 31,237 | 4,047 | |||||
Kroton Educacional SA | 943,390 | 4,443 | Eurazeo SA | 10,635 | 721 | |||||
Petroleo Brasileiro SA(Æ) | 682,084 | 3,086 | Imerys SA | 88,389 | 7,602 | |||||
15,870 | Ipsos SA | 81,276 | 2,606 | |||||||
LVMH Moet Hennessy Louis Vuitton | ||||||||||
Canada - 0.9% | SE - ADR | 6,675 | 1,649 | |||||||
Bank of Montreal | 40,987 | 2,902 | PPR SA | 13,124 | 4,072 | |||||
BCE, Inc. | 30,392 | 1,384 | Publicis Groupe SA - ADR | 68,396 | 4,937 | |||||
Canadian Imperial Bank of Commerce | 19,920 | 1,609 | Renault SA | 12,538 | 1,169 | |||||
Emera, Inc. | 23,600 | 817 | Sanofi - ADR | 25,263 | 2,386 | |||||
Imperial Oil, Ltd. | 28,247 | 822 | Suez Environnement Co.(Ñ) | 32,526 | 535 | |||||
Intact Financial Corp. | 11,100 | 760 | Total SA | 84,009 | 4,306 | |||||
Loblaw Cos., Ltd. | 15,450 | 867 | Veolia Environnement SA(Ñ) | 92,084 | 1,750 | |||||
Methanex Corp. | 134,200 | 6,167 | Vinci SA(Ñ) | 97,200 | 8,280 | |||||
Royal Bank of Canada - GDR | 38,386 | 2,628 | 117,504 | |||||||
Suncor Energy, Inc. | 23,005 | 721 | ||||||||
Toronto Dominion Bank | 67,687 | 3,185 | Germany - 5.4% | |||||||
TransCanada Corp. | 17,553 | 815 | Allianz SE | 99,638 | 18,971 | |||||
22,677 | BASF SE | 64,552 | 6,291 | |||||||
Bayer AG | 6,672 | 826 | ||||||||
Cayman Islands - 1.2% | Daimler AG | 275,959 | 20,549 | |||||||
AAC Technologies Holdings, Inc. | 481,500 | 7,058 | Deutsche Bank AG | 365,206 | 6,599 | |||||
Baidu, Inc. - ADR(Æ) | 50,245 | 9,056 | Deutsche Boerse AG | 106,497 | 10,425 | |||||
SINA Corp.(Æ) | 34,108 | 2,620 | Deutsche Lufthansa AG | 109,441 | 1,888 | |||||
Deutsche Telekom AG | 374,025 | 6,559 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 171
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
DMG Mori AG | 29,026 | 1,581 | Aozora Bank, Ltd. | 1,021,000 | 3,722 | ||||||
Freenet AG | 162,700 | 5,106 | Asahi Group Holdings, Ltd. | 177,500 | 6,701 | ||||||
Hannover Rueck SE | 51,479 | 6,173 | Astellas Pharma, Inc. | 59,900 | 790 | ||||||
Lanxess AG | 104,992 | 7,577 | Canon, Inc. | 31,800 | 1,057 | ||||||
Linde AG | 36,714 | 6,597 | Central Japan Railway Co. | 10,600 | 1,777 | ||||||
MAN SE | 17,701 | 1,860 | Chubu Electric Power Co., Inc. | 85,500 | 1,149 | ||||||
Muenchener Rueckversicherungs- | Daiichi Sankyo Co., Ltd. | 81,500 | 1,810 | ||||||||
Gesellschaft AG in Muenchen | 37,771 | 7,238 | Daito Trust Construction Co., Ltd. | 6,600 | 971 | ||||||
Rhoen Klinikum AG | 31,858 | 909 | Daiwa House Industry Co., Ltd. | 24,200 | 719 | ||||||
SAP SE - ADR(Ñ) | 70,645 | 7,077 | Daiwa Securities Group, Inc. | 1,018,000 | 6,195 | ||||||
Siemens AG | 31,416 | 4,503 | Eisai Co., Ltd. | 99,900 | 5,249 | ||||||
Symrise AG | 94,420 | 6,610 | FamilyMart UNY Holdings Co., Ltd. | 29,900 | 1,691 | ||||||
Zalando SE(Æ)(Þ) | 159,915 | 7,052 | Hikari Tsushin, Inc. | 4,700 | 451 | ||||||
134,391 | Honda Motor Co., Ltd. | 265,677 | 7,706 | ||||||||
Idemitsu Kosan Co., Ltd. | 22,500 | 719 | |||||||||
Hong Kong - 0.3% | ITOCHU Corp. | 111,300 | 1,575 | ||||||||
Cathay Pacific Airways, Ltd. | 1,045,400 | 1,505 | Japan Post Holdings Co., Ltd. | 58,800 | 729 | ||||||
China Resources Power Holdings Co., | Japan Retail Fund Investment Corp.(ö) | 492 | 962 | ||||||||
Ltd. | 1,116,100 | 2,009 | Japan Tobacco, Inc. | 72,800 | 2,421 | ||||||
CLP Holdings, Ltd. | 63,500 | 670 | JX Holdings, Inc. | 558,250 | 2,520 | ||||||
Hang Seng Bank, Ltd. | 32,103 | 651 | Kansai Electric Power Co., Inc. (The) | 502,200 | 6,789 | ||||||
New World Development Co., Ltd. | 653,030 | 812 | KDDI Corp. | 216,800 | 5,751 | ||||||
Power Assets Holdings, Ltd. | 188 | 2 | Kuraray Co., Ltd. | 126,900 | 2,048 | ||||||
Wheelock & Co., Ltd. | 109,751 | 855 | Marubeni Corp. | 296,600 | 1,829 | ||||||
6,504 | Mitsui & Co., Ltd. | 150,600 | 2,126 | ||||||||
Mizuho Financial Group, Inc. | 631,200 | 1,153 | |||||||||
India - 1.0% | Nagoya Railroad Co., Ltd. | 280,000 | 1,287 | ||||||||
HDFC Bank, Ltd. | 326,060 | 7,847 | Nexon Co., Ltd. | 26,300 | 448 | ||||||
IndusInd Bank, Ltd. | 229,244 | 5,143 | NH Foods, Ltd. | 35,000 | 996 | ||||||
Infosys, Ltd. - ADR | 295,800 | 4,307 | Nikon Corp. | 93,200 | 1,330 | ||||||
Tata Motors, Ltd. | 154,204 | 1,102 | Nintendo Co., Ltd. | 26,800 | 6,755 | ||||||
Tata Motors, Ltd. - ADR | 148,664 | 5,303 | Nippon Telegraph & Telephone Corp. | 53,107 | 2,272 | ||||||
23,702 | Nissan Motor Co., Ltd. | 211,700 | 2,013 | ||||||||
Nomura Real Estate Master Fund, Inc.(ö) | 415 | 598 | |||||||||
Ireland - 1.2% | NTT DOCOMO, Inc. | 97,300 | 2,347 | ||||||||
Accenture PLC Class A | 37,002 | 4,488 | Ono Pharmaceutical Co., Ltd. | 159,200 | 3,291 | ||||||
Greencore Group PLC Class A | 2,105,910 | 6,214 | Orix JREIT, Inc.(ö) | 698 | 1,107 | ||||||
Medtronic PLC | 120,331 | 9,999 | Recruit Holdings Co., Ltd. | 28,300 | 1,430 | ||||||
Willis Towers Watson PLC | 71,100 | 9,429 | SoftBank Group Corp. | 81,800 | 6,204 | ||||||
30,130 | Sumitomo Corp. | 65,900 | 881 | ||||||||
Sumitomo Mitsui Financial Group, Inc. | 247,600 | 9,176 | |||||||||
Israel - 0.2% | Suzuken Co., Ltd. | 17,800 | 589 | ||||||||
Check Point Software Technologies, Ltd. | Taisei Corp. | 284,000 | 2,167 | ||||||||
(Æ) | 18,015 | 1,874 | Terumo Corp. | 19,200 | 701 | ||||||
Teva Pharmaceutical Industries, Ltd. | Tohoku Electric Power Co., Inc. | 84,700 | 1,130 | ||||||||
- ADR | 90,600 | 2,861 | Tokio Marine Holdings, Inc. | 163,100 | 6,878 | ||||||
4,735 | Tokyo Electric Power Co., Inc.(Æ) | 320,600 | 1,247 | ||||||||
Toppan Printing Co., Ltd. | 56,000 | 563 | |||||||||
Italy - 0.5% | Toyota Motor Corp. | 329,900 | 17,830 | ||||||||
Enel SpA | 843,198 | 4,005 | United Urban Investment Corp.(ö) | 422 | 638 | ||||||
ENI SpA - ADR | 68,152 | 1,057 | West Japan Railway Co. | 28,500 | 1,904 | ||||||
Intesa Sanpaolo SpA | 1,152,389 | 3,351 | 143,942 | ||||||||
Parmalat SpA | 236,380 | 801 | |||||||||
Snam Rete Gas SpA | 161,453 | 714 | Jersey - 1.0% | ||||||||
Trevi Finanziaria Industriale SpA(Æ)(Ñ) | 1,489,405 | 1,478 | Delphi Automotive PLC | 109,583 | 8,810 | ||||||
11,406 | Glencore PLC(Æ) | 4,145,300 | 16,246 | ||||||||
25,056 | |||||||||||
Japan - 5.8% | |||||||||||
ANA Holdings, Inc. | 515,000 | 1,550 |
See accompanying notes which are an integral part of the financial statements.
172 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Luxembourg - 0.1% | SK Hynix, Inc. | 28,151 | 1,336 | ||||||
ArcelorMittal(Æ) | 401,435 | 3,131 | 66,220 | ||||||
Mexico - 0.4% | Spain - 0.5% | ||||||||
Grupo Televisa SAB - ADR | 435,400 | 10,580 | Banco de Sabadell SA - ADR | 1,696,300 | 3,263 | ||||
Endesa SA - ADR | 25,849 | 609 | |||||||
Netherlands - 1.1% | Iberdrola SA | 236,993 | 1,704 | ||||||
EXOR NV | 61,452 | 3,445 | Red Electrica Corp. SA | 220,004 | 4,289 | ||||
Heineken NV(Ñ) | 22,282 | 1,985 | Repsol SA - ADR | 89,004 | 1,409 | ||||
Koninklijke Ahold Delhaize NV | 84,627 | 1,753 | 11,274 | ||||||
Koninklijke Philips NV | 207,607 | 7,195 | |||||||
Koninklijke Vopak NV | 19,802 | 893 | Sweden - 0.8% | ||||||
NXP Semiconductors NV(Æ) | 13,048 | 1,380 | Atlas Copco AB Class B | 47,800 | 1,590 | ||||
Royal Dutch Shell PLC Class A | 30,013 | 782 | Duni AB | 260,200 | 3,687 | ||||
SBM Offshore NV | 78,589 | 1,293 | Loomis AB Class B | 163,260 | 5,926 | ||||
Yandex NV Class A(Æ) | 289,795 | 7,901 | Svenska Handelsbanken AB Class A | 436,287 | 6,189 | ||||
26,627 | Swedbank AB Class A | 35,813 | 849 | ||||||
Swedish Match AB | 54,976 | 1,814 | |||||||
New Zealand - 0.1% | 20,055 | ||||||||
Mercury NZ, Ltd. | 303,042 | 669 | |||||||
Ryman Healthcare, Ltd. | 172,920 | 1,025 | Switzerland - 4.1% | ||||||
1,694 | Allreal Holding AG(Æ) | 7,864 | 1,353 | ||||||
Basler Kantonalbank | 7,914 | 563 | |||||||
Norway - 0.8% | Chubb, Ltd. | 41,960 | 5,759 | ||||||
DNB ASA | 416,398 | 6,503 | Cie Financiere Richemont SA | 93,000 | 7,770 | ||||
SpareBank 1 SR-Bank ASA | 881,252 | 6,949 | Credit Suisse Group AG(Æ) | 1,080,749 | 16,429 | ||||
Yara International ASA | 145,300 | 5,396 | Julius Baer Group, Ltd.(Æ) | 222,732 | 11,605 | ||||
18,848 | Kuehne & Nagel International AG | 51,480 | 7,783 | ||||||
LafargeHolcim, Ltd.(Æ) | 144,475 | 8,195 | |||||||
Panama - 0.0% | Nestle SA | 213,342 | 16,434 | ||||||
Carnival Corp. | 19,305 | 1,192 | Novartis AG | 77,202 | 5,941 | ||||
Roche Holding AG | 53,993 | 14,122 | |||||||
Portugal - 0.1% | Sonova Holding AG | 3,986 | 589 | ||||||
Energias de Portugal SA | 861,153 | 2,843 | Swiss Prime Site AG Class A(Æ) | 10,016 | 868 | ||||
Swiss Re AG | 22,656 | 1,972 | |||||||
Puerto Rico - 0.3% | Syngenta AG | 4,721 | 2,194 | ||||||
Popular, Inc. | 197,400 | 8,273 | 101,577 | ||||||
Russia - 1.2% | Taiwan - 1.0% | ||||||||
Lukoil PJSC - ADR | 74,621 | 3,705 | Largan Precision Co., Ltd. | 35,600 | 5,911 | ||||
MMC Norilsk Nickel PJSC | 19,949 | 3,066 | Taiwan Semiconductor Manufacturing | ||||||
Rosneft Oil Co. PJSC - GDR | 690,175 | 3,820 | Co., Ltd. - ADR | 602,100 | 19,911 | ||||
Rosneft Oil Co. PJSC | 570,585 | 3,179 | 25,822 | ||||||
Sberbank of Russia PJSC Class T | 2,947,904 | 8,557 | |||||||
Sberbank of Russia PJSC - ADR | 995,800 | 8,628 | Thailand - 0.6% | ||||||
30,955 | Kasikornbank PCL | 25,200 | 135 | ||||||
Siam Commercial Bank PCL (The) | 1,631,500 | 7,340 | |||||||
Singapore - 0.5% | Thai Oil PCL | 2,933,700 | 6,617 | ||||||
DBS Group Holdings, Ltd. | 84,800 | 1,178 | 14,092 | ||||||
United Overseas Bank, Ltd.(Ñ) | 776,200 | 12,137 | |||||||
13,315 | United Kingdom - 7.2% | ||||||||
Aon PLC | 65,290 | 7,824 | |||||||
South Korea - 2.7% | Barclays PLC | 4,226,806 | 11,522 | ||||||
BNK Financial Group, Inc. | 202,093 | 1,696 | Barratt Developments PLC | 1,100,368 | 8,257 | ||||
Hyundai Motor Co. | 27,437 | 3,468 | BBA Aviation PLC | 1,573,016 | 6,341 | ||||
Kia Motors Corp. | 165,800 | 5,070 | Bellway PLC | 229,254 | 8,449 | ||||
Netmarble Games Corp.(Æ)(Þ) | 2,831 | 391 | BHP Billiton PLC - ADR | 189,400 | 5,820 | ||||
Samsung Electronics Co., Ltd. | 26,580 | 51,960 | BP PLC | 2,019,542 | 11,555 | ||||
Shinhan Financial Group Co., Ltd. | 55,079 | 2,299 | British American Tobacco PLC | 192,426 | 13,021 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 173
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
CNH Industrial NV | 1,582,200 | 17,441 | CalAtlantic Group, Inc. | 100,984 | 3,658 | ||||
Diageo PLC | 388,250 | 11,308 | Capital One Financial Corp. | 78,900 | 6,342 | ||||
Experian PLC | 288,700 | 6,199 | Carter's, Inc. | 57,000 | 5,246 | ||||
GlaxoSmithKline PLC - ADR | 60,325 | 1,213 | Caterpillar, Inc. | 57,700 | 5,900 | ||||
HSBC Holdings PLC | 170,816 | 1,407 | Centennial Resource Development, Inc. | ||||||
Imperial Tobacco Group PLC | 78,251 | 3,830 | (Å)(Æ) | 11,723 | 174 | ||||
John Wood Group PLC | 206,614 | 2,029 | Charles Schwab Corp. (The) | 179,499 | 6,974 | ||||
Just Eat PLC(Æ) | 1,092,157 | 8,161 | Charter Communications, Inc. Class | ||||||
Kingfisher PLC | 429,622 | 1,899 | A(Æ) | 66,481 | 22,946 | ||||
Marks & Spencer Group PLC | 970,700 | 4,610 | Chevron Corp. | 48,484 | 5,173 | ||||
National Grid PLC | 49,708 | 644 | Cigna Corp. | 69,782 | 10,912 | ||||
Persimmon PLC Class A | 297,534 | 8,976 | Cincinnati Financial Corp. | 12,084 | 871 | ||||
Reckitt Benckiser Group PLC | 17,609 | 1,622 | Cisco Systems, Inc. | 95,634 | 3,258 | ||||
RELX NV(Ñ) | 76,639 | 1,481 | Citigroup, Inc. | 383,871 | 22,694 | ||||
RELX PLC | 46,282 | 938 | Clorox Co. (The) | 27,121 | 3,626 | ||||
Royal Dutch Shell PLC Class B | 291,285 | 7,756 | Coca-Cola Co. (The) | 86,658 | 3,739 | ||||
Shaftesbury PLC(ö) | 118,241 | 1,427 | Colgate-Palmolive Co. | 19,845 | 1,430 | ||||
Standard Chartered PLC(Æ) | 533,242 | 4,978 | Comcast Corp. Class A | 32,390 | 1,269 | ||||
Taylor Wimpey PLC | 3,393,992 | 8,789 | Conduent, Inc.(Æ) | 100,720 | 1,643 | ||||
Vodafone Group PLC | 382,381 | 986 | Corning, Inc. | 26,329 | 760 | ||||
Worldpay Group PLC(Þ) | 1,037,406 | 4,031 | CoStar Group, Inc.(Æ) | 33,131 | 7,981 | ||||
WPP PLC | 263,994 | 5,649 | Costco Wholesale Corp. | 14,003 | 2,486 | ||||
178,163 | CR Bard, Inc. | 27,754 | 8,534 | ||||||
CSX Corp. | 156,655 | 7,964 | |||||||
United States - 48.5% | Cummins, Inc. | 26,300 | 3,969 | ||||||
3M Co. | 18,920 | 3,705 | CVS Health Corp. | 32,180 | 2,653 | ||||
Abbott Laboratories | 15,543 | 678 | Danaher Corp. | 6,203 | 517 | ||||
Abiomed, Inc.(Æ) | 33,578 | 4,376 | Darden Restaurants, Inc. | 22,977 | 1,957 | ||||
Advanced Micro Devices, Inc.(Æ) | 575,873 | 7,659 | Dime Community Bancshares, Inc. | 246,600 | 4,796 | ||||
Aflac, Inc. | 20,834 | 1,560 | Domino's Pizza, Inc. | 5,809 | 1,054 | ||||
Align Technology, Inc.(Æ) | 42,996 | 5,788 | Dow Chemical Co. (The) | 24,636 | 1,547 | ||||
Allergan PLC(Æ) | 17,384 | 4,239 | DR Horton, Inc. | 463,311 | 15,238 | ||||
ALLETE, Inc. | 104,800 | 7,327 | Dr Pepper Snapple Group, Inc. | 30,540 | 2,799 | ||||
Allstate Corp. (The) | 47,129 | 3,831 | Duke Energy Corp. | 14,040 | 1,158 | ||||
Alphabet, Inc. Class A(Æ) | 16,046 | 14,835 | eBay, Inc.(Æ) | 75,800 | 2,532 | ||||
Alphabet, Inc. Class C(Æ) | 44,781 | 40,570 | Edwards Lifesciences Corp.(Æ) | 68,116 | 7,470 | ||||
Altria Group, Inc. | 67,439 | 4,841 | Eli Lilly & Co. | 17,772 | 1,458 | ||||
Amazon.com, Inc.(Æ) | 24,111 | 22,302 | Estee Lauder Cos., Inc. (The) Class A | 11,714 | 1,021 | ||||
American Electric Power Co., Inc. | 16,518 | 1,120 | Expedia, Inc. | 11,472 | 1,534 | ||||
American International Group, Inc. | 160,971 | 9,804 | Exxon Mobil Corp. | 73,743 | 6,021 | ||||
Ameris Bancorp | 151,320 | 7,127 | Facebook, Inc. Class A(Æ) | 217,477 | 32,675 | ||||
Analog Devices, Inc. | 13,859 | 1,056 | Fastenal Co. | 175,415 | 7,838 | ||||
Annaly Capital Management, Inc.(ö) | 137,498 | 1,624 | Fifth Third Bancorp | 200,700 | 4,903 | ||||
Anthem, Inc. | 92,949 | 16,535 | Foot Locker, Inc. | 7,417 | 574 | ||||
Apple, Inc. | 221,193 | 31,773 | Franklin Resources, Inc. | 155,800 | 6,717 | ||||
Applied Materials, Inc. | 18,100 | 735 | General Dynamics Corp. | 45,436 | 8,805 | ||||
AT&T, Inc. | 114,989 | 4,557 | General Electric Co. | 599,106 | 17,368 | ||||
Avnet, Inc. | 135,200 | 5,231 | General Motors Co. | 334,555 | 11,589 | ||||
Baker Hughes, Inc. | 164,587 | 9,771 | Gilead Sciences, Inc. | 22,012 | 1,509 | ||||
Bank of America Corp. | 1,380,590 | 32,223 | Goldman Sachs Group, Inc. (The) | 27,584 | 6,173 | ||||
Baxter International, Inc. | 151,667 | 8,445 | Hartford Financial Services Group, Inc. | 18,800 | 909 | ||||
Berkshire Hathaway, Inc. Class B(Æ) | 37,000 | 6,113 | HCA Holdings, Inc.(Æ) | 114,200 | 9,617 | ||||
BlackRock, Inc. Class A | 10,245 | 3,940 | Hewlett Packard Enterprise Co. | 191,800 | 3,573 | ||||
Boeing Co. (The) | 6,974 | 1,289 | Hilton Worldwide Holdings, Inc. | 119,125 | 7,025 | ||||
Bristol-Myers Squibb Co. | 176,747 | 9,907 | Hologic, Inc.(Æ) | 129,661 | 5,854 | ||||
Brookline Bancorp, Inc. | 352,276 | 5,126 | Home Depot, Inc. (The) | 23,646 | 3,691 | ||||
CA, Inc. | 26,697 | 876 | Honeywell International, Inc. | 26,591 | 3,487 | ||||
Cabot Oil & Gas Corp. | 378,000 | 8,785 | Huntington Bancshares, Inc. | 492,118 | 6,329 |
See accompanying notes which are an integral part of the financial statements.
174 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Hyatt Hotels Corp. Class A(Æ) | 23,804 | 1,321 | ServiceNow, Inc.(Æ) | 124,842 | 11,795 | ||||
Intel Corp. | 393,652 | 14,231 | Southern Co. (The) | 21,882 | 1,090 | ||||
Intercontinental Exchange, Inc. | 163,078 | 9,817 | Southwest Bancorp, Inc. | 172,800 | 4,484 | ||||
International Bancshares Corp. | 201,918 | 7,552 | SS&C Technologies Holdings, Inc. | 152,551 | 5,605 | ||||
International Business Machines Corp. | 12,756 | 2,045 | Starwood Property Trust, Inc.(ö) | 49,040 | 1,113 | ||||
International Paper Co. | 138,186 | 7,458 | Symantec Corp. | 58,587 | 1,853 | ||||
JM Smucker Co. (The) | 47,200 | 5,981 | Synchrony Financial | 204,529 | 5,686 | ||||
Johnson & Johnson | 163,618 | 20,202 | Tesoro Corp. | 9,686 | 772 | ||||
JPMorgan Chase & Co. | 361,094 | 31,415 | Thermo Fisher Scientific, Inc. | 9,998 | 1,653 | ||||
Lamb Weston Holdings, Inc. | 12,439 | 519 | Torchmark Corp. | 7,010 | 538 | ||||
Lennar Corp. Class A | 169,100 | 8,540 | TransUnion(Æ) | 142,292 | 5,696 | ||||
Liberty Broadband Corp. Class C(Æ) | 17,812 | 1,624 | Travelers Cos., Inc. (The) | 19,756 | 2,404 | ||||
Liberty Interactive Corp.(Æ) | 26,226 | 1,412 | Ultimate Software Group, Inc.(Æ) | 30,373 | 6,156 | ||||
Lockheed Martin Corp. | 14,396 | 3,879 | United Parcel Service, Inc. Class B | 14,196 | 1,526 | ||||
LyondellBasell Industries NV Class A | 6,539 | 554 | United Technologies Corp. | 21,712 | 2,584 | ||||
Marathon Petroleum Corp. | 109,200 | 5,563 | UnitedHealth Group, Inc. | 233,967 | 40,915 | ||||
Marriott International, Inc. Class A | 62,018 | 5,856 | Valero Energy Corp. | 25,351 | 1,638 | ||||
MasterCard, Inc. Class A | 72,432 | 8,426 | Verizon Communications, Inc. | 148,667 | 6,825 | ||||
McDonald's Corp. | 25,159 | 3,520 | Viacom, Inc. Class B | 168,828 | 7,185 | ||||
Merck & Co., Inc. | 231,431 | 14,425 | Visa, Inc. Class A | 168,203 | 15,344 | ||||
Meritage Homes Corp.(Æ) | 47,500 | 1,850 | Visteon Corp.(Æ) | 16,466 | 1,695 | ||||
MFA Financial, Inc.(ö) | 79,396 | 660 | VMware, Inc. Class A(Æ)(Ñ) | 14,808 | 1,394 | ||||
Microchip Technology, Inc. | 116,395 | 8,797 | Walgreens Boots Alliance, Inc. | 12,101 | 1,047 | ||||
Micron Technology, Inc.(Æ) | 210,337 | 5,820 | Wal-Mart Stores, Inc. | 46,139 | 3,469 | ||||
Microsoft Corp. | 468,392 | 32,066 | Walt Disney Co. (The) | 44,391 | 5,132 | ||||
Middleby Corp.(Æ) | 57,682 | 7,852 | Waste Management, Inc. | 45,529 | 3,314 | ||||
Monster Beverage Corp.(Æ) | 180,601 | 8,196 | Waters Corp.(Æ) | 5,806 | 986 | ||||
Moody's Corp. | 37,100 | 4,390 | Web.com Group, Inc.(Æ) | 322,000 | 6,215 | ||||
MSC Industrial Direct Co., Inc. Class A | 21,474 | 1,923 | Webster Financial Corp. | 159,300 | 8,094 | ||||
Netflix, Inc.(Æ) | 79,232 | 12,059 | Wells Fargo & Co. | 325,983 | 17,551 | ||||
Newfield Exploration Co.(Æ) | 159,197 | 5,511 | WESCO International, Inc.(Æ) | 107,200 | 6,534 | ||||
NewMarket Corp. | 1,843 | 868 | Westar Energy, Inc. Class A | 29,668 | 1,544 | ||||
NextEra Energy, Inc. | 52,000 | 6,945 | Western Union Co. (The) | 302,200 | 6,002 | ||||
Northrop Grumman Corp. | 7,072 | 1,739 | Workday, Inc. Class A(Æ) | 118,615 | 10,367 | ||||
NVIDIA Corp. | 12,066 | 1,258 | Xcel Energy, Inc. | 9,457 | 426 | ||||
Occidental Petroleum Corp. | 40,044 | 2,464 | Xerox Corp. | 503,600 | 3,621 | ||||
Oracle Corp. | 91,671 | 4,122 | Zillow Group, Inc.(Æ)(Ñ) | 154,345 | 6,019 | ||||
Parsley Energy, Inc. Class A(Æ) | 23,572 | 702 | Zimmer Biomet Holdings, Inc. | 8,297 | 993 | ||||
PepsiCo, Inc. | 114,158 | 12,932 | 1,205,872 | ||||||
Pfizer, Inc. | 421,669 | 14,303 | |||||||
PG&E Corp. | 17,028 | 1,142 | Virgin Islands, British - 0.1% | ||||||
Philip Morris International, Inc. | 15,176 | 1,682 | Ocelot Partners, Ltd.(Æ)(Þ) | 144,126 | 1,441 | ||||
Phillips 66 | 41,499 | 3,302 | |||||||
Pioneer Natural Resources Co. | 24,757 | 4,283 | Total Common Stocks | ||||||
Platform Specialty Products Corp.(Æ) | 674,294 | 9,555 | (cost $1,919,771) | 2,392,665 | |||||
PNC Financial Services Group, Inc. | |||||||||
(The) | 50,218 | 6,014 | |||||||
Praxair, Inc. | 56,800 | 7,099 | Options Purchased - 0.0% | ||||||
Priceline Group, Inc. (The)(Æ) | 10,025 | 18,515 | (Number of Contracts) | ||||||
Procter & Gamble Co. (The) | 77,563 | 6,774 | S&P 500 Index | ||||||
May 2017 2,276.44 Put (104,455) | USD | 104 | (ÿ) | 331 | |||||
Progressive Corp. (The) | 33,257 | 1,321 | Total Options Purchased | ||||||
Public Service Enterprise Group, Inc. | 13,437 | 592 | |||||||
(cost $2,424) | 331 | ||||||||
Quest Diagnostics, Inc. | 93,156 | 9,828 | Warrants & Rights - 0.0% | ||||||
Range Resources Corp. | 283,700 | 7,515 | Virgin Islands, British - 0.0% | ||||||
Raytheon Co. | 14,126 | 2,192 | Ocelot Partners, Ltd.(Æ) | ||||||
Regal Entertainment Group Class A(Ñ) | 138,585 | 3,059 | 2020 Warrants | 144,126 | 65 | ||||
Republic Services, Inc. Class A | 22,422 | 1,412 | |||||||
Schlumberger, Ltd. | 107,960 | 7,837 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 175
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | ||||||||
Amount ($) | Value | ||||||||
or Shares | $ | ||||||||
Total Warrants & Rights | |||||||||
(cost $1) | 65 | ||||||||
Short | -Term Investments - 4.0% | ||||||||
United States - 4.0% | |||||||||
U.S. Cash Management Fund | 82,886,528 | (8) | 82,903 | ||||||
United States Treasury Bills | |||||||||
0.616% due 05/11/17(~)(§) | 900 | 900 | |||||||
0.699% due 06/22/17(~)(§) | 10,200 | 10,190 | |||||||
0.744% due 07/13/17(~)(§) | 5,000 | 4,992 | |||||||
98,985 | |||||||||
Total Short-Term Investments | |||||||||
(cost $98,982) | 98,985 | ||||||||
Other Securities - 1.9% | |||||||||
U.S. Cash Collateral Fund(×) | 47,230,617 | (8) | 47,231 | ||||||
Total Other Securities | |||||||||
(cost $47,231) | 47,231 | ||||||||
Total Investments 102.3% | |||||||||
(identified cost $2,068,409) | 2,539,277 | ||||||||
Other Assets and Liabilities, Net | |||||||||
- | (2.3%) | (56,149 | ) | ||||||
Net Assets - 100.0% | 2,483,128 |
See accompanying notes which are an integral part of the financial statements.
176 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | ||||||||||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | ||||||||||||
Securities | Date | or shares | $ | $ | $ | ||||||||||||||
0.0% | |||||||||||||||||||
Centennial Resource Development, Inc. | 12/19/16 | 11,723 | 14.54 | 170 | 174 | ||||||||||||||
China Hongxing Sports, Ltd. | 08/27/10 | 6,320,000 | — | 764 | — | ||||||||||||||
174 | |||||||||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. | |||||||||||||||||||
Futures Contracts | |||||||||||||||||||
Amounts in thousands (except contract amounts) | |||||||||||||||||||
Unrealized | |||||||||||||||||||
Appreciation | |||||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||||||||||||
Contracts | Amount | Date | $ | ||||||||||||||||
Long Positions | |||||||||||||||||||
CAC40 10 Euro Index Futures | 39 | EUR | 2,034 | 05/17 | 111 | ||||||||||||||
DAX Index Futures | 6 | EUR | 1,870 | 06/17 | 78 | ||||||||||||||
EURO STOXX 50 Index Futures | 35 | EUR | 1,228 | 06/17 | 59 | ||||||||||||||
FTSE 100 Index Futures | 21 | GBP | 1,505 | 06/17 | 3 | ||||||||||||||
Hang Seng Index Futures | 4 | HKD | 4,912 | 05/17 | 9 | ||||||||||||||
MSCI Emerging Markets Mini Index Futures | 273 | USD | 24,895 | 06/17 | 1,294 | ||||||||||||||
OMXS30 Index Futures | 20 | SEK | 3,236 | 05/17 | 16 | ||||||||||||||
S&P 500 E-Mini Index Futures | 616 | USD | 73,319 | 06/17 | 705 | ||||||||||||||
S&P Mid 400 E-Mini Index Futures | 8 | USD | 1,384 | 06/17 | 18 | ||||||||||||||
S&P/TSX 60 Index Futures | 140 | CAD | 25,670 | 06/17 | 24 | ||||||||||||||
SPI 200 Index Futures | 9 | AUD | 1,330 | 06/17 | 15 | ||||||||||||||
TOPIX Index Futures | 515 | JPY | 7,879,500 | 06/17 | (363 | ) | |||||||||||||
Short Positions | |||||||||||||||||||
FTSE 100 Index Futures | 636 | GBP | 45,569 | 06/17 | 970 | ||||||||||||||
Hang Seng Index Futures | 79 | HKD | 97,016 | 05/17 | (152 | ) | |||||||||||||
MSCI Emerging Markets Mini Index Futures | 1,952 | USD | 95,550 | 06/17 | (3,544 | ) | |||||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | (757 | ) | |||||||||||||||||
Options Written | |||||||||||||||||||
Amounts in thousands (except contract amounts) | |||||||||||||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||||||||||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||||||||||||
S&P 500 Index | Put | 104,455 | 2,036.81 | USD | 104 | 05/19/17 | (31 | ) | |||||||||||
Total Liability for Options Written (premiums received $522) | (31 | ) | |||||||||||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | |||||||||||||||||||
Number of | Premiums | ||||||||||||||||||
Contracts | Received | ||||||||||||||||||
Outstanding October 31, 2016 | — | $ | — | ||||||||||||||||
Opened | 269,662 | 3,342 | |||||||||||||||||
Closed | (18,508 | ) | (733 | ) | |||||||||||||||
Expired | (146,699 | ) | (2,087 | ) | |||||||||||||||
Outstanding April 30, 2017 | 104,455 | $ | 522 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 177
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of America | USD | 75 | AUD | 100 | 06/21/17 | (1 | ) | |
Bank of America | USD | 114 | AUD | 150 | 06/21/17 | (1 | ) | |
Bank of America | USD | 153 | AUD | 200 | 06/21/17 | (3 | ) | |
Bank of America | USD | 230 | AUD | 300 | 06/21/17 | (5 | ) | |
Bank of America | USD | 149 | CAD | 200 | 06/21/17 | (3 | ) | |
Bank of America | USD | 150 | CAD | 200 | 06/21/17 | (4 | ) | |
Bank of America | USD | 226 | CAD | 300 | 06/21/17 | (6 | ) | |
Bank of America | USD | 300 | CAD | 400 | 06/21/17 | (7 | ) | |
Bank of America | USD | 18,065 | CAD | 24,000 | 06/21/17 | (472 | ) | |
Bank of America | USD | 2,039 | CHF | 2,000 | 06/21/17 | (23 | ) | |
Bank of America | USD | 534 | EUR | 500 | 06/21/17 | 12 | ||
Bank of America | USD | 538 | EUR | 500 | 06/21/17 | 8 | ||
Bank of America | USD | 641 | EUR | 600 | 06/21/17 | 14 | ||
Bank of America | USD | 1,072 | EUR | 1,000 | 06/21/17 | 20 | ||
Bank of America | USD | 1,602 | EUR | 1,500 | 06/21/17 | 36 | ||
Bank of America | USD | 26,176 | EUR | 24,268 | 06/21/17 | 325 | ||
Bank of America | USD | 252 | GBP | 200 | 06/21/17 | 8 | ||
Bank of America | USD | 257 | GBP | 200 | 06/21/17 | 2 | ||
Bank of America | USD | 370 | GBP | 300 | 06/21/17 | 19 | ||
Bank of America | USD | 375 | GBP | 300 | 06/21/17 | 14 | ||
Bank of America | USD | 129 | HKD | 1,000 | 06/21/17 | — | ||
Bank of America | USD | 129 | HKD | 1,000 | 06/21/17 | — | ||
Bank of America | USD | 129 | HKD | 1,000 | 06/21/17 | — | ||
Bank of America | USD | 3,014 | JPY | 335,201 | 05/02/17 | (7 | ) | |
Bank of America | USD | 276 | JPY | 30,000 | 06/21/17 | (6 | ) | |
Bank of America | USD | 277 | JPY | 30,000 | 06/21/17 | (7 | ) | |
Bank of America | USD | 359 | JPY | 40,000 | 06/21/17 | — | ||
Bank of America | USD | 531 | JPY | 60,000 | 06/21/17 | 9 | ||
Bank of America | USD | 1,814 | JPY | 200,000 | 06/21/17 | (16 | ) | |
Bank of America | USD | 56 | SEK | 500 | 06/21/17 | 1 | ||
Bank of America | USD | 79 | SEK | 700 | 06/21/17 | 1 | ||
Bank of America | USD | 111 | SEK | 1,000 | 06/21/17 | 2 | ||
Bank of America | AUD | 100 | USD | 75 | 06/21/17 | — | ||
Bank of America | AUD | 100 | USD | 75 | 06/21/17 | — | ||
Bank of America | AUD | 200 | USD | 151 | 06/21/17 | 1 | ||
Bank of America | AUD | 475 | USD | 356 | 06/21/17 | 1 | ||
Bank of America | AUD | 1,000 | USD | 749 | 06/21/17 | 1 | ||
Bank of America | CAD | 200 | USD | 150 | 06/21/17 | 3 | ||
Bank of America | CAD | 200 | USD | 147 | 06/21/17 | — | ||
Bank of America | CAD | 300 | USD | 221 | 06/21/17 | 1 | ||
Bank of America | CAD | 600 | USD | 448 | 06/21/17 | 8 | ||
Bank of America | CAD | 1,400 | USD | 1,038 | 06/21/17 | 11 | ||
Bank of America | EUR | 400 | USD | 437 | 06/21/17 | — | ||
Bank of America | EUR | 500 | USD | 532 | 06/21/17 | (14 | ) | |
Bank of America | EUR | 1,000 | USD | 1,096 | 06/21/17 | 4 | ||
Bank of America | EUR | 1,800 | USD | 1,913 | 06/21/17 | (52 | ) | |
Bank of America | EUR | 4,000 | USD | 4,256 | 06/21/17 | (112 | ) | |
Bank of America | GBP | 100 | USD | 130 | 06/21/17 | — | ||
Bank of America | GBP | 200 | USD | 250 | 06/21/17 | (9 | ) | |
Bank of America | GBP | 300 | USD | 385 | 06/21/17 | (4 | ) | |
Bank of America | GBP | 550 | USD | 682 | 06/21/17 | (32 | ) | |
Bank of America | GBP | 1,400 | USD | 1,709 | 06/21/17 | (107 | ) | |
Bank of America | HKD | 300 | USD | 39 | 06/21/17 | — |
See accompanying notes which are an integral part of the financial statements.
178 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Bank of America | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Bank of America | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Bank of America | HKD | 3,000 | USD | 387 | 06/21/17 | 1 | |
Bank of America | JPY | 361,975 | USD | 3,254 | 05/02/17 | 7 | |
Bank of America | JPY | 30,000 | USD | 274 | 06/21/17 | 5 | |
Bank of America | JPY | 30,000 | USD | 270 | 06/21/17 | — | |
Bank of America | JPY | 50,000 | USD | 451 | 06/21/17 | 1 | |
Bank of America | JPY | 125,000 | USD | 1,127 | 06/21/17 | 4 | |
Bank of America | JPY | 300,000 | USD | 2,621 | 06/21/17 | (75 | ) |
Bank of America | JPY | 1,400,000 | USD | 12,411 | 06/21/17 | (173 | ) |
Bank of America | SEK | 500 | USD | 57 | 06/21/17 | 1 | |
Bank of America | SEK | 500 | USD | 57 | 06/21/17 | — | |
Bank of America | SEK | 1,200 | USD | 133 | 06/21/17 | (3 | ) |
Bank of America | SEK | 2,600 | USD | 289 | 06/21/17 | (5 | ) |
Bank of Montreal | USD | 545 | AUD | 714 | 06/21/17 | (11 | ) |
Bank of Montreal | USD | 7,315 | AUD | 9,574 | 06/21/17 | (152 | ) |
Bank of Montreal | USD | 738 | CAD | 984 | 06/21/17 | (17 | ) |
Bank of Montreal | USD | 6,950 | CAD | 9,268 | 06/21/17 | (156 | ) |
Bank of Montreal | USD | 3,322 | EUR | 3,139 | 06/21/17 | 106 | |
Bank of Montreal | USD | 1,229 | GBP | 998 | 06/21/17 | 66 | |
Bank of Montreal | USD | 5,213 | GBP | 4,234 | 06/21/17 | 279 | |
Bank of Montreal | USD | 333 | HKD | 2,579 | 06/21/17 | (1 | ) |
Bank of Montreal | USD | 1,174 | HKD | 9,100 | 06/21/17 | (2 | ) |
Bank of Montreal | USD | 1,669 | JPY | 189,482 | 06/21/17 | 34 | |
Bank of Montreal | USD | 13,055 | JPY | 1,481,942 | 06/21/17 | 265 | |
Bank of Montreal | USD | 217 | SEK | 1,954 | 06/21/17 | 4 | |
Bank of Montreal | AUD | 50 | USD | 38 | 06/21/17 | 1 | |
Bank of Montreal | CAD | 30 | USD | 22 | 06/21/17 | 1 | |
Bank of Montreal | CHF | 8,898 | USD | 8,858 | 06/21/17 | (112 | ) |
Bank of Montreal | DKK | 1,700 | USD | 242 | 06/21/17 | (8 | ) |
Bank of Montreal | EUR | 200 | USD | 217 | 06/21/17 | (1 | ) |
Bank of Montreal | EUR | 4,974 | USD | 5,263 | 06/21/17 | (168 | ) |
Bank of Montreal | EUR | 6,510 | USD | 6,889 | 06/21/17 | (220 | ) |
Bank of Montreal | GBP | 100 | USD | 125 | 06/21/17 | (5 | ) |
Bank of Montreal | GBP | 8,741 | USD | 10,762 | 06/21/17 | (576 | ) |
Bank of Montreal | HKD | 300 | USD | 39 | 06/21/17 | — | |
Bank of Montreal | HKD | 18,304 | USD | 2,361 | 06/21/17 | 5 | |
Bank of Montreal | JPY | 10,000 | USD | 90 | 06/21/17 | — | |
Bank of Montreal | JPY | 892,400 | USD | 7,861 | 06/21/17 | (160 | ) |
Bank of Montreal | NOK | 36,436 | USD | 4,328 | 06/21/17 | 82 | |
Bank of Montreal | SEK | 27,400 | USD | 3,041 | 06/21/17 | (60 | ) |
BNP Paribas | USD | 540 | AUD | 714 | 06/21/17 | (6 | ) |
BNP Paribas | USD | 7,247 | AUD | 9,574 | 06/21/17 | (85 | ) |
BNP Paribas | USD | 737 | CAD | 984 | 06/21/17 | (15 | ) |
BNP Paribas | USD | 6,934 | CAD | 9,268 | 06/21/17 | (139 | ) |
BNP Paribas | USD | 3,313 | EUR | 3,139 | 06/21/17 | 115 | |
BNP Paribas | USD | 1,228 | GBP | 998 | 06/21/17 | 66 | |
BNP Paribas | USD | 5,211 | GBP | 4,234 | 06/21/17 | 281 | |
BNP Paribas | USD | 333 | HKD | 2,579 | 06/21/17 | (1 | ) |
BNP Paribas | USD | 1,174 | HKD | 9,100 | 06/21/17 | (2 | ) |
BNP Paribas | USD | 1,663 | JPY | 189,482 | 06/21/17 | 41 | |
BNP Paribas | USD | 13,005 | JPY | 1,481,942 | 06/21/17 | 316 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 179
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
BNP Paribas | USD | 217 | SEK | 1,954 | 06/21/17 | 5 | |
BNP Paribas | AUD | 250 | USD | 191 | 06/21/17 | 3 | |
BNP Paribas | CAD | 330 | USD | 247 | 06/21/17 | 5 | |
BNP Paribas | CHF | 8,898 | USD | 8,830 | 06/21/17 | (140 | ) |
BNP Paribas | DKK | 1,700 | USD | 241 | 06/21/17 | (8 | ) |
BNP Paribas | EUR | 950 | USD | 1,031 | 06/21/17 | (7 | ) |
BNP Paribas | EUR | 4,974 | USD | 5,249 | 06/21/17 | (182 | ) |
BNP Paribas | EUR | 6,510 | USD | 6,871 | 06/21/17 | (238 | ) |
BNP Paribas | GBP | 275 | USD | 344 | 06/21/17 | (12 | ) |
BNP Paribas | GBP | 8,741 | USD | 10,757 | 06/21/17 | (581 | ) |
BNP Paribas | HKD | 850 | USD | 110 | 06/21/17 | — | |
BNP Paribas | HKD | 18,304 | USD | 2,361 | 06/21/17 | 5 | |
BNP Paribas | JPY | 50,000 | USD | 452 | 06/21/17 | 2 | |
BNP Paribas | JPY | 892,400 | USD | 7,831 | 06/21/17 | (190 | ) |
BNP Paribas | NOK | 36,436 | USD | 4,302 | 06/21/17 | 56 | |
BNP Paribas | SEK | 650 | USD | 74 | 06/21/17 | 1 | |
BNP Paribas | SEK | 27,400 | USD | 3,037 | 06/21/17 | (65 | ) |
Brown Brothers Harriman | USD | 402 | CHF | 399 | 05/02/17 | — | |
Brown Brothers Harriman | USD | 12,123 | CHF | 12,000 | 06/21/17 | (26 | ) |
Brown Brothers Harriman | USD | 54 | EUR | 50 | 05/02/17 | — | |
Brown Brothers Harriman | USD | 562 | JPY | 62,447 | 05/02/17 | (2 | ) |
Brown Brothers Harriman | USD | 361 | JPY | 40,259 | 05/08/17 | — | |
Brown Brothers Harriman | USD | 6,212 | JPY | 700,000 | 06/21/17 | 80 | |
Brown Brothers Harriman | USD | 5,691 | SEK | 50,000 | 06/21/17 | (31 | ) |
Brown Brothers Harriman | AUD | 15,000 | USD | 11,495 | 06/21/17 | 273 | |
Brown Brothers Harriman | CAD | 16,000 | USD | 12,034 | 06/21/17 | 303 | |
Brown Brothers Harriman | EUR | 601 | USD | 655 | 05/03/17 | 1 | |
Brown Brothers Harriman | EUR | 15,000 | USD | 16,171 | 06/21/17 | (208 | ) |
Brown Brothers Harriman | SEK | 584 | USD | 66 | 05/02/17 | — | |
Brown Brothers Harriman | SEK | 618 | USD | 70 | 05/03/17 | — | |
Citigroup | USD | 77 | AUD | 100 | 06/21/17 | (2 | ) |
Citigroup | USD | 211 | AUD | 275 | 06/21/17 | (6 | ) |
Citigroup | USD | 301 | AUD | 400 | 06/21/17 | (1 | ) |
Citigroup | USD | 75 | CAD | 100 | 06/21/17 | (2 | ) |
Citigroup | USD | 75 | CAD | 100 | 06/21/17 | (2 | ) |
Citigroup | USD | 263 | CAD | 350 | 06/21/17 | (6 | ) |
Citigroup | USD | 371 | CAD | 500 | 06/21/17 | (5 | ) |
Citigroup | USD | 321 | EUR | 300 | 06/21/17 | 7 | |
Citigroup | USD | 325 | EUR | 300 | 06/21/17 | 2 | |
Citigroup | USD | 1,241 | EUR | 1,150 | 06/21/17 | 15 | |
Citigroup | USD | 1,720 | EUR | 1,600 | 06/21/17 | 27 | |
Citigroup | USD | 126 | GBP | 100 | 06/21/17 | 4 | |
Citigroup | USD | 250 | GBP | 200 | 06/21/17 | 9 | |
Citigroup | USD | 435 | GBP | 350 | 06/21/17 | 19 | |
Citigroup | USD | 642 | GBP | 500 | 06/21/17 | 7 | |
Citigroup | USD | 39 | HKD | 300 | 06/21/17 | — | |
Citigroup | USD | 123 | HKD | 950 | 06/21/17 | — | |
Citigroup | USD | 129 | HKD | 1,000 | 06/21/17 | — | |
Citigroup | USD | 92 | JPY | 10,000 | 06/21/17 | (2 | ) |
Citigroup | USD | 181 | JPY | 20,000 | 06/21/17 | (1 | ) |
Citigroup | USD | 624 | JPY | 70,000 | 06/21/17 | 5 | |
Citigroup | USD | 917 | JPY | 100,000 | 06/21/17 | (18 | ) |
Citigroup | USD | 91 | SEK | 800 | 06/21/17 | — |
See accompanying notes which are an integral part of the financial statements.
180 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Citigroup | USD | 134 | SEK | 1,200 | 06/21/17 | 2 | |
Citigroup | AUD | 100 | USD | 75 | 06/21/17 | — | |
Citigroup | AUD | 100 | USD | 76 | 06/21/17 | 1 | |
Citigroup | AUD | 100 | USD | 76 | 06/21/17 | 1 | |
Citigroup | AUD | 200 | USD | 151 | 06/21/17 | 2 | |
Citigroup | AUD | 300 | USD | 226 | 06/21/17 | 2 | |
Citigroup | CAD | 100 | USD | 75 | 06/21/17 | 2 | |
Citigroup | CAD | 100 | USD | 75 | 06/21/17 | 1 | |
Citigroup | CAD | 200 | USD | 149 | 06/21/17 | 3 | |
Citigroup | CAD | 300 | USD | 224 | 06/21/17 | 4 | |
Citigroup | CAD | 500 | USD | 371 | 06/21/17 | 5 | |
Citigroup | EUR | 100 | USD | 108 | 06/21/17 | (1 | ) |
Citigroup | EUR | 200 | USD | 213 | 06/21/17 | (5 | ) |
Citigroup | EUR | 200 | USD | 218 | 06/21/17 | — | |
Citigroup | EUR | 600 | USD | 651 | 06/21/17 | (4 | ) |
Citigroup | EUR | 1,000 | USD | 1,071 | 06/21/17 | (21 | ) |
Citigroup | EUR | 1,500 | USD | 1,598 | 06/21/17 | (41 | ) |
Citigroup | GBP | 100 | USD | 125 | 06/21/17 | (5 | ) |
Citigroup | GBP | 100 | USD | 129 | 06/21/17 | (1 | ) |
Citigroup | GBP | 100 | USD | 125 | 06/21/17 | (4 | ) |
Citigroup | GBP | 100 | USD | 125 | 06/21/17 | (4 | ) |
Citigroup | GBP | 200 | USD | 245 | 06/21/17 | (15 | ) |
Citigroup | GBP | 300 | USD | 376 | 06/21/17 | (14 | ) |
Citigroup | GBP | 500 | USD | 609 | 06/21/17 | (39 | ) |
Citigroup | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Citigroup | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Citigroup | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Citigroup | HKD | 1,000 | USD | 129 | 06/21/17 | — | |
Citigroup | JPY | 10,000 | USD | 92 | 06/21/17 | 2 | |
Citigroup | JPY | 10,000 | USD | 90 | 06/21/17 | — | |
Citigroup | JPY | 10,000 | USD | 90 | 06/21/17 | 1 | |
Citigroup | JPY | 20,000 | USD | 181 | 06/21/17 | 1 | |
Citigroup | JPY | 30,000 | USD | 264 | 06/21/17 | (5 | ) |
Citigroup | JPY | 30,000 | USD | 272 | 06/21/17 | 2 | |
Citigroup | JPY | 100,000 | USD | 876 | 06/21/17 | (23 | ) |
Citigroup | SEK | 200 | USD | 22 | 06/21/17 | — | |
Citigroup | SEK | 500 | USD | 57 | 06/21/17 | — | |
Citigroup | SEK | 500 | USD | 56 | 06/21/17 | (1 | ) |
Citigroup | SEK | 600 | USD | 67 | 06/21/17 | (1 | ) |
Citigroup | SEK | 1,000 | USD | 112 | 06/21/17 | (1 | ) |
Commonwealth Bank of Australia | USD | 545 | AUD | 714 | 06/21/17 | (11 | ) |
Commonwealth Bank of Australia | USD | 7,306 | AUD | 9,574 | 06/21/17 | (144 | ) |
Commonwealth Bank of Australia | USD | 738 | CAD | 984 | 06/21/17 | (17 | ) |
Commonwealth Bank of Australia | USD | 6,951 | CAD | 9,268 | 06/21/17 | (156 | ) |
Commonwealth Bank of Australia | USD | 3,324 | EUR | 3,139 | 06/21/17 | 104 | |
Commonwealth Bank of Australia | USD | 1,229 | GBP | 998 | 06/21/17 | 66 | |
Commonwealth Bank of Australia | USD | 5,214 | GBP | 4,234 | 06/21/17 | 278 | |
Commonwealth Bank of Australia | USD | 333 | HKD | 2,579 | 06/21/17 | (1 | ) |
Commonwealth Bank of Australia | USD | 1,174 | HKD | 9,100 | 06/21/17 | (3 | ) |
Commonwealth Bank of Australia | USD | 1,670 | JPY | 189,482 | 06/21/17 | 33 | |
Commonwealth Bank of Australia | USD | 13,061 | JPY | 1,481,942 | 06/21/17 | 259 | |
Commonwealth Bank of Australia | USD | 217 | SEK | 1,954 | 06/21/17 | 4 | |
Commonwealth Bank of Australia | CHF | 8,898 | USD | 8,865 | 06/21/17 | (105 | ) |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 181
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Commonwealth Bank of Australia | DKK | 1,700 | USD | 242 | 06/21/17 | (7 | ) |
Commonwealth Bank of Australia | EUR | 4,974 | USD | 5,266 | 06/21/17 | (165 | ) |
Commonwealth Bank of Australia | EUR | 6,510 | USD | 6,892 | 06/21/17 | (216 | ) |
Commonwealth Bank of Australia | GBP | 8,741 | USD | 10,763 | 06/21/17 | (574 | ) |
Commonwealth Bank of Australia | HKD | 18,304 | USD | 2,361 | 06/21/17 | 5 | |
Commonwealth Bank of Australia | JPY | 892,400 | USD | 7,865 | 06/21/17 | (156 | ) |
Commonwealth Bank of Australia | NOK | 36,436 | USD | 4,329 | 06/21/17 | 83 | |
Commonwealth Bank of Australia | SEK | 27,400 | USD | 3,043 | 06/21/17 | (59 | ) |
Northern Trust | USD | 200 | CHF | 199 | 05/02/17 | — | |
Northern Trust | EUR | 245 | USD | 267 | 05/02/17 | — | |
Royal Bank of Canada | USD | 541 | AUD | 714 | 06/21/17 | (7 | ) |
Royal Bank of Canada | USD | 990 | AUD | 1,300 | 06/21/17 | (17 | ) |
Royal Bank of Canada | USD | 7,257 | AUD | 9,574 | 06/21/17 | (95 | ) |
Royal Bank of Canada | USD | 737 | CAD | 984 | 06/21/17 | (15 | ) |
Royal Bank of Canada | USD | 1,347 | CAD | 1,800 | 06/21/17 | (28 | ) |
Royal Bank of Canada | USD | 6,936 | CAD | 9,268 | 06/21/17 | (142 | ) |
Royal Bank of Canada | USD | 3,315 | EUR | 3,139 | 06/21/17 | 114 | |
Royal Bank of Canada | USD | 6,545 | EUR | 6,000 | 06/21/17 | 7 | |
Royal Bank of Canada | USD | 1,228 | GBP | 998 | 06/21/17 | 67 | |
Royal Bank of Canada | USD | 2,266 | GBP | 1,800 | 06/21/17 | 68 | |
Royal Bank of Canada | USD | 5,209 | GBP | 4,234 | 06/21/17 | 283 | |
Royal Bank of Canada | USD | 333 | HKD | 2,579 | 06/21/17 | (1 | ) |
Royal Bank of Canada | USD | 645 | HKD | 5,000 | 06/21/17 | (1 | ) |
Royal Bank of Canada | USD | 1,174 | HKD | 9,100 | 06/21/17 | (3 | ) |
Royal Bank of Canada | USD | 1,665 | JPY | 189,482 | 06/21/17 | 38 | |
Royal Bank of Canada | USD | 3,175 | JPY | 350,000 | 06/21/17 | (29 | ) |
Royal Bank of Canada | USD | 13,024 | JPY | 1,481,942 | 06/21/17 | 296 | |
Royal Bank of Canada | USD | 217 | SEK | 1,954 | 06/21/17 | 4 | |
Royal Bank of Canada | USD | 435 | SEK | 3,800 | 06/21/17 | (5 | ) |
Royal Bank of Canada | AUD | 100 | USD | 75 | 06/21/17 | — | |
Royal Bank of Canada | CAD | 100 | USD | 75 | 06/21/17 | 2 | |
Royal Bank of Canada | CHF | 8,898 | USD | 8,839 | 06/21/17 | (130 | ) |
Royal Bank of Canada | DKK | 1,700 | USD | 242 | 06/21/17 | (8 | ) |
Royal Bank of Canada | EUR | 300 | USD | 319 | 06/21/17 | (9 | ) |
Royal Bank of Canada | EUR | 4,974 | USD | 5,251 | 06/21/17 | (180 | ) |
Royal Bank of Canada | EUR | 6,510 | USD | 6,874 | 06/21/17 | (235 | ) |
Royal Bank of Canada | GBP | 100 | USD | 124 | 06/21/17 | (5 | ) |
Royal Bank of Canada | GBP | 8,741 | USD | 10,754 | 06/21/17 | (585 | ) |
Royal Bank of Canada | HKD | 18,304 | USD | 2,361 | 06/21/17 | 5 | |
Royal Bank of Canada | JPY | 20,000 | USD | 181 | 06/21/17 | 1 | |
Royal Bank of Canada | JPY | 892,400 | USD | 7,843 | 06/21/17 | (178 | ) |
Royal Bank of Canada | NOK | 36,436 | USD | 4,310 | 06/21/17 | 64 | |
Royal Bank of Canada | SEK | 27,400 | USD | 3,043 | 06/21/17 | (58 | ) |
Standard Chartered | USD | 545 | AUD | 714 | 06/21/17 | (11 | ) |
Standard Chartered | USD | 7,313 | AUD | 9,574 | 06/21/17 | (150 | ) |
Standard Chartered | USD | 738 | CAD | 984 | 06/21/17 | (17 | ) |
Standard Chartered | USD | 6,951 | CAD | 9,268 | 06/21/17 | (156 | ) |
Standard Chartered | USD | 3,322 | EUR | 3,139 | 06/21/17 | 107 | |
Standard Chartered | USD | 1,229 | GBP | 998 | 06/21/17 | 66 | |
Standard Chartered | USD | 5,212 | GBP | 4,234 | 06/21/17 | 280 | |
Standard Chartered | USD | 333 | HKD | 2,579 | 06/21/17 | (1 | ) |
Standard Chartered | USD | 1,174 | HKD | 9,100 | 06/21/17 | (3 | ) |
Standard Chartered | USD | 1,669 | JPY | 189,482 | 06/21/17 | 34 |
See accompanying notes which are an integral part of the financial statements.
182 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Standard Chartered | USD | 13,052 | JPY | 1,481,942 | 06/21/17 | 268 | |
Standard Chartered | USD | 217 | SEK | 1,954 | 06/21/17 | 4 | |
Standard Chartered | CHF | 8,898 | USD | 8,861 | 06/21/17 | (109 | ) |
Standard Chartered | DKK | 1,700 | USD | 242 | 06/21/17 | (7 | ) |
Standard Chartered | EUR | 4,974 | USD | 5,262 | 06/21/17 | (169 | ) |
Standard Chartered | EUR | 6,510 | USD | 6,888 | 06/21/17 | (221 | ) |
Standard Chartered | GBP | 8,741 | USD | 10,759 | 06/21/17 | (579 | ) |
Standard Chartered | HKD | 18,304 | USD | 2,361 | 06/21/17 | 5 | |
Standard Chartered | JPY | 892,400 | USD | 7,860 | 06/21/17 | (162 | ) |
Standard Chartered | NOK | 36,436 | USD | 4,325 | 06/21/17 | 79 | |
Standard Chartered | SEK | 27,400 | USD | 3,043 | 06/21/17 | (59 | ) |
State Street | USD | 2,182 | EUR | 2,000 | 06/21/17 | 2 | |
State Street | USD | 387 | HKD | 3,000 | 06/21/17 | (1 | ) |
State Street | USD | 379 | JPY | 42,203 | 05/01/17 | (1 | ) |
State Street | USD | 447 | JPY | 49,714 | 05/02/17 | (1 | ) |
State Street | USD | 6,788 | JPY | 755,699 | 05/08/17 | (7 | ) |
State Street | AUD | 50 | USD | 39 | 06/21/17 | 1 | |
State Street | AUD | 2,200 | USD | 1,664 | 06/21/17 | 18 | |
State Street | CAD | 50 | USD | 37 | 06/21/17 | 1 | |
State Street | CAD | 2,800 | USD | 2,086 | 06/21/17 | 33 | |
State Street | CHF | 5,037 | USD | 5,013 | 06/21/17 | (64 | ) |
State Street | EUR | 2,342 | USD | 2,551 | 05/03/17 | — | |
State Street | EUR | 100 | USD | 108 | 06/21/17 | (1 | ) |
State Street | EUR | 9,500 | USD | 10,167 | 06/21/17 | (208 | ) |
State Street | GBP | 2,116 | USD | 2,726 | 05/02/17 | (14 | ) |
State Street | GBP | 50 | USD | 62 | 06/21/17 | (3 | ) |
State Street | GBP | 2,900 | USD | 3,555 | 06/21/17 | (207 | ) |
State Street | HKD | 8,000 | USD | 1,032 | 06/21/17 | 2 | |
State Street | JPY | 10,000 | USD | 89 | 06/21/17 | (1 | ) |
State Street | JPY | 550,000 | USD | 4,810 | 06/21/17 | (133 | ) |
State Street | NOK | 1,487 | USD | 173 | 05/02/17 | — | |
State Street | SEK | 6,300 | USD | 708 | 06/21/17 | (5 | ) |
State Street | THB | 8,801 | USD | 253 | 05/02/17 | (1 | ) |
UBS | USD | 6,063 | AUD | 8,000 | 06/21/17 | (78 | ) |
UBS | USD | 1,220 | DKK | 8,500 | 06/21/17 | 28 | |
UBS | USD | 2,496 | GBP | 2,000 | 06/21/17 | 99 | |
UBS | USD | 229 | SEK | 2,000 | 06/21/17 | (2 | ) |
UBS | AUD | 370 | USD | 283 | 06/21/17 | 6 | |
UBS | CAD | 520 | USD | 390 | 06/21/17 | 9 | |
UBS | EUR | 1,700 | USD | 1,839 | 06/21/17 | (17 | ) |
UBS | EUR | 7,000 | USD | 7,464 | 06/21/17 | (180 | ) |
UBS | GBP | 500 | USD | 619 | 06/21/17 | (29 | ) |
UBS | GBP | 800 | USD | 1,002 | 06/21/17 | (36 | ) |
UBS | GBP | 4,500 | USD | 5,546 | 06/21/17 | (290 | ) |
UBS | HKD | 1,200 | USD | 155 | 06/21/17 | — | |
UBS | JPY | 90,000 | USD | 798 | 06/21/17 | (11 | ) |
UBS | JPY | 200,000 | USD | 1,810 | 06/21/17 | 13 | |
UBS | JPY | 700,000 | USD | 6,171 | 06/21/17 | (121 | ) |
UBS | NOK | 20,000 | USD | 2,374 | 06/21/17 | 44 | |
UBS | SEK | 1,100 | USD | 125 | 06/21/17 | 1 | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (5,443 | ) |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 183
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Australia | $ | — | $ | 29,514 | $ | — | $ | — | $ | 29,514 | 1.2 | ||||||
Austria | — | 6,889 | — | — | 6,889 | 0.3 | |||||||||||
Belgium | — | 11,224 | — | — | 11,224 | 0.5 | |||||||||||
Bermuda | 3,166 | — | — | — | 3,166 | 0.1 | |||||||||||
Brazil | 15,870 | — | — | — | 15,870 | 0.6 | |||||||||||
Canada | 22,677 | — | — | — | 22,677 | 0.9 | |||||||||||
Cayman Islands | 11,676 | 17,645 | — | — | 29,321 | 1.2 | |||||||||||
Chile | 1,501 | — | — | — | 1,501 | 0.1 | |||||||||||
China | 19,289 | — | — | — | 19,289 | 0.8 | |||||||||||
Denmark | — | 5,622 | — | — | 5,622 | 0.2 | |||||||||||
Finland | — | 8,248 | — | — | 8,248 | 0.3 | |||||||||||
France | — | 117,504 | — | — | 117,504 | 4.7 | |||||||||||
Germany | 13,676 | 120,715 | — | — | 134,391 | 5.4 | |||||||||||
Hong Kong | — | 6,504 | — | — | 6,504 | 0.3 | |||||||||||
India | 9,610 | 14,092 | — | — | 23,702 | 1.0 | |||||||||||
Ireland | 23,916 | 6,214 | — | — | 30,130 | 1.2 | |||||||||||
Israel | 4,735 | — | — | — | 4,735 | 0.2 | |||||||||||
Italy | — | 11,406 | — | — | 11,406 | 0.5 | |||||||||||
Japan | — | 143,942 | — | — | 143,942 | 5.8 | |||||||||||
Jersey | 8,810 | 16,246 | — | — | 25,056 | 1.0 | |||||||||||
Luxembourg | 3,131 | — | — | — | 3,131 | 0.1 | |||||||||||
Mexico | 10,580 | — | — | — | 10,580 | 0.4 | |||||||||||
Netherlands | 9,281 | 17,346 | — | — | 26,627 | 1.1 | |||||||||||
New Zealand | — | 1,694 | — | — | 1,694 | 0.1 | |||||||||||
Norway | — | 18,848 | — | — | 18,848 | 0.8 | |||||||||||
Panama | 1,192 | — | — | — | 1,192 | —* | |||||||||||
Portugal | — | 2,843 | — | — | 2,843 | 0.1 | |||||||||||
Puerto Rico | 8,273 | — | — | — | 8,273 | 0.3 | |||||||||||
Russia | 8,128 | 22,827 | — | — | 30,955 | 1.2 | |||||||||||
Singapore | — | 13,315 | — | — | 13,315 | 0.5 | |||||||||||
South Korea | 391 | 65,829 | — | — | 66,220 | 2.7 | |||||||||||
Spain | — | 11,274 | — | — | 11,274 | 0.5 | |||||||||||
Sweden | — | 20,055 | — | — | 20,055 | 0.8 | |||||||||||
Switzerland | 5,759 | 95,818 | — | — | 101,577 | 4.1 | |||||||||||
Taiwan | 19,911 | 5,911 | — | — | 25,822 | 1.0 | |||||||||||
Thailand | 135 | 13,957 | — | — | 14,092 | 0.6 | |||||||||||
United Kingdom | 13,644 | 164,519 | — | — | 178,163 | 7.2 | |||||||||||
United States | 1,205,698 | — | 174 | — | 1,205,872 | 48.5 | |||||||||||
Virgin Islands, British | 1,441 | — | — | — | 1,441 | 0.1 | |||||||||||
Options Purchased | — | 331 | — | — | 331 | —* |
See accompanying notes which are an integral part of the financial statements.
184 Global Equity Fund
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||||
Amounts in thousands | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Practical | |||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||||
Warrants & Rights | 65 | — | — | — | 65 | —* | |||||||||||||
Short-Term Investments | — | 16,082 | — | 82,903 | 98,985 | 4.0 | |||||||||||||
Other Securities | — | — | — | 47,231 | 47,231 | 1.9 | |||||||||||||
Total Investments | 1,422,555 | 986,414 | 174 | 130,134 | 2,539,277 | 102.3 | |||||||||||||
Other Assets and Liabilities, Net | (2.3 | ) | |||||||||||||||||
100.0 | |||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Futures Contracts | 3,302 | — | — | — | 3,302 | 0.1 | |||||||||||||
Foreign Currency Exchange Contracts | 8 | 5,913 | — | — | 5,921 | 0.2 | |||||||||||||
A | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Futures Contracts | (4,059 | ) | — | — | — | (4,059 | ) | (0.2 | ) | ||||||||||
Options Written | — | (31 | ) | — | — | (31 | ) | (—)* | |||||||||||
Foreign Currency Exchange Contracts | (26 | ) | (11,338 | ) | — | — | (11,364 | ) | (0.5 | ) | |||||||||
Total Other Financial Instruments** | $ | (775 | ) | $ | (5,456 | ) | $ | — | $ | (6,231 | ) | $ | (6,231 | ) |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
Amounts in thousands | |||
Fair Value | |||
Sector Exposure | $ | ||
Consumer Discretionary | 399,482 | ||
Consumer Staples | 103,105 | ||
Energy | 129,434 | ||
Financial Services | 609,470 | ||
Health Care | 257,143 | ||
Materials and Processing | 138,812 | ||
Options Purchased | 331 | ||
Producer Durables | 246,248 | ||
Technology | 413,973 | ||
Utilities | 94,998 | ||
Warrants and Rights | 65 | ||
Short-Term Investments | 98,985 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 185
Russell Investment Company
Global Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Other Securities | 47,231 | ||
Total Investments | 2,539,277 |
See accompanying notes which are an integral part of the financial statements.
186 Global Equity Fund
Russell Investment Company
Global Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||
Equity | Currency | |||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||
Location: Statement of Assets and Liabilities - Assets | ||||||
Investments, at fair value* | $ | 331 | $ | — | ||
Unrealized appreciation on foreign currency exchange contracts | — | 5,921 | ||||
Variation margin on futures contracts** | 3,302 | — | ||||
Total | $ | 3,633 | $ | 5,921 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||||
Variation margin on futures contracts** | $ | 4,059 | $ | — | ||
Unrealized depreciation on foreign currency exchange contracts | — | 11,364 | ||||
Options written, at fair value | 31 | — | ||||
Total | $ | 4,090 | $ | 11,364 | ||
Foreign | ||||||
Equity | Currency | |||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||
Location: Statement of Operations - Net realized gain (loss) | ||||||
Investments*** | $ | (6,956 | ) | $ | — | |
Futures contracts | 15,880 | — | ||||
Options written | 463 | — | ||||
Foreign currency-related transactions**** | — | 5,751 | ||||
Total | $ | 9,387 | $ | 5,751 | ||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||
Investments***** | $ | 227 | $ | — | ||
Futures contracts | (1,315 | ) | — | |||
Options written | 491 | — | ||||
Foreign currency-related transactions****** | — | (8,548 | ) | |||
Total | $ | (597 | ) | $ | (8,548 | ) |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes net unrealized gain (loss) on forward and spot contracts. May differ from the net change in unealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 187
Russell Investment Company
Global Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 331 | $ | — $ | 331 | |||
Securities on Loan* | Investments, at fair value | 45,422 | — | 45,422 | |||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 5,921 | — | 5,921 | |||||
Futures Contracts | Variation margin on futures contracts | 231 | — | 231 | |||||
Total Financial and Derivative Assets | 51,905 | — | 51,905 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (239 | ) | — | (239 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 51,666 | $ | — $ | 51,666 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Assets | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||
Bank of America | $ | 511 | $ | 511 | $ | — | $ | — | |||
Bank of Montreal | 843 | 843 | — | — | |||||||
Barclays | 2,009 | — | 2,009 | — | |||||||
BNP Paribas | 895 | 895 | — | — | |||||||
Brown Brothers Harriman | 657 | 266 | — | 391 | |||||||
Citigroup | 4,328 | 126 | 4,202 | — | |||||||
Commonwealth Bank of Australia | 833 | 833 | — | — | |||||||
Credit Suisse | 2,655 | — | 2,655 | — | |||||||
Deutsche Bank | 1,236 | — | 1,236 | — | |||||||
Goldman Sachs | 4,924 | — | 4,924 | — | |||||||
HSBC | 1,345 | — | 1,345 | — | |||||||
JPMorgan Chase | 10,336 | — | 10,336 | — | |||||||
Merrill Lynch | 2,999 | — | 2,999 | — | |||||||
Morgan Stanley | 331 | 31 | — | 300 | |||||||
Royal Bank of Canada | 948 | 948 | — | — | |||||||
Societe Generale | 15,716 | — | 15,716 | — | |||||||
Standard Chartered | 844 | 844 | — | — | |||||||
State Street | 57 | 57 | — | — | |||||||
UBS | 199 | 199 | — | — | |||||||
Total | $ | 51,666 | $ | 5,553 | $ | 45,422 | $ | 691 |
See accompanying notes which are an integral part of the financial statements.
188 Global Equity Fund
Russell Investment Company
Global Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 1,033 | $ | — $ | 1,033 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 11,364 | — | 11,364 | |||||
Options Written Contracts | Options written, at fair value | 31 | — | 31 | |||||
Total Financial and Derivative Liabilities | 12,428 | — | 12,428 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (1,068 | ) | — | (1,068 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 11,360 | $ | — $ | 11,360 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Net Amount | Net Amount | |||||
Bank of America | $ | 1,139 | $ | 511 | $ | — | $ 628 | ||
Bank of Montreal | 1,649 | 843 | — | 806 | |||||
BNP Paribas | 1,670 | 895 | — | 775 | |||||
Brown Brothers Harriman | 266 | 266 | — | — | |||||
Citigroup | 231 | 126 | — | 105 | |||||
Commonwealth Bank of Australia | 1,614 | 833 | — | 781 | |||||
Morgan Stanley | 31 | 31 | — | — | |||||
Royal Bank of Canada | 1,730 | 948 | — | 782 | |||||
Standard Chartered | 1,643 | 844 | — | 799 | |||||
State Street | 622 | 57 | — | 565 | |||||
UBS | 765 | 199 | — | 566 | |||||
Total | $ | 11,360 | $ | 5,553 | $ | — | $ 5,807 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 189
Russell Investment Company
Global Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 2,068,409 |
Investments, at fair value(*)(>) | 2,539,277 | |
Cash (restricted)(a) | 1,000 | |
Foreign currency holdings(^) | 1,870 | |
Unrealized appreciation on foreign currency exchange contracts | 5,921 | |
Receivables: | ||
Dividends and interest | 4,712 | |
Dividends from affiliated funds | 61 | |
Investments sold | 24,234 | |
Fund shares sold | 2,306 | |
Foreign capital gains taxes recoverable | 1,322 | |
Variation margin on futures contracts | 231 | |
Prepaid expenses | 25 | |
Total assets | 2,580,959 | |
Liabilities | ||
Payables: | ||
Due to custodian | 32 | |
Investments purchased | 32,180 | |
Fund shares redeemed | 2,826 | |
Accrued fees to affiliates | 2,315 | |
Other accrued expenses | 469 | |
Variation margin on futures contracts | 1,033 | |
Deferred capital gains tax liability | 350 | |
Unrealized depreciation on foreign currency exchange contracts | 11,364 | |
Options written, at fair value(x) | 31 | |
Payable upon return of securities loaned | 47,231 | |
Total liabilities | 97,831 | |
Net Assets | $ | 2,483,128 |
See accompanying notes which are an integral part of the financial statements.
190 Global Equity Fund
Russell Investment Company
Global Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 310 | |
Accumulated net realized gain (loss) | 155,613 | ||
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 470,518 | ||
Futures contracts | (757 | ) | |
Options written | 491 | ||
Foreign currency-related transactions | (5,435 | ) | |
Shares of beneficial interest | 2,302 | ||
Additional paid-in capital | 1,860,086 | ||
Net Assets | $ | 2,483,128 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 10.74 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 11.40 | |
Class A — Net assets | $ | 12,609,894 | |
Class A — Shares outstanding ($.01 par value) | 1,173,846 | ||
Net asset value per share: Class C(#) | $ | 10.63 | |
Class C — Net assets | $ | 11,075,413 | |
Class C — Shares outstanding ($.01 par value) | 1,041,914 | ||
Net asset value per share: Class E(#) | $ | 10.76 | |
Class E — Net assets | $ | 1,688,043 | |
Class E — Shares outstanding ($.01 par value) | 156,917 | ||
Net asset value per share: Class S(#) | $ | 10.78 | |
Class S — Net assets | $ 1,782,312,621 | ||
Class S — Shares outstanding ($.01 par value) | 165,280,665 | ||
Net asset value per share: Class T(#) | $ | 10.79 | |
Class T — Net assets | $ | 3,213,961 | |
Class T — Shares outstanding ($.01 par value) | 297,942 | ||
Net asset value per share: Class Y(#) | $ | 10.80 | |
Class Y — Net assets | $ | 672,227,664 | |
Class Y — Shares outstanding ($.01 par value) | 62,249,777 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 1,858 | |
(x) Premiums received on options written | $ | 522 | |
(*) Securities on loan included in investments | $ | 45,422 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 130,134 | |
(a) Cash Collateral for Futures | $ | 1,000 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 191
Russell Investment Company
Global Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 24,157 | |
Dividends from affiliated funds | 450 | ||
Interest | 41 | ||
Securities lending income (net) | 117 | ||
Securities lending income from affiliated funds (net) | 134 | ||
Less foreign taxes withheld | (1,454 | ) | |
Total investment income | 23,445 | ||
Expenses | |||
Advisory fees | 11,435 | ||
Administrative fees | 586 | ||
Custodian fees | 270 | ||
Distribution fees - Class A | 16 | ||
Distribution fees - Class C | 41 | ||
Transfer agent fees - Class A | 13 | ||
Transfer agent fees - Class C | 11 | ||
Transfer agent fees - Class E | 20 | ||
Transfer agent fees - Class S | 1,713 | ||
Transfer agent fees - Class T | —* | ||
Transfer agent fees - Class Y | 15 | ||
Professional fees | 64 | ||
Registration fees | 56 | ||
Shareholder servicing fees - Class C | 14 | ||
Shareholder servicing fees - Class E | 25 | ||
Trustees’ fees | 41 | ||
Printing fees | 109 | ||
Miscellaneous | 12 | ||
Expenses before reductions | 14,441 | ||
Expense reductions | (—)* | ||
Net expenses | 14,441 | ||
Net investment income (loss) | 9,004 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 159,202 | ||
Futures contracts | 15,880 | ||
Options written | 463 | ||
Foreign currency-related transactions | 4,755 | ||
Net realized gain (loss) | 180,300 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 106,150 | ||
Futures contracts | (1,315 | ) | |
Options written | 491 | ||
Foreign currency-related transactions | (8,092 | ) | |
Net change in unrealized appreciation (depreciation) | 97,234 | ||
Net realized and unrealized gain (loss) | 277,534 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 286,538 | |
* Less than $500. |
See accompanying notes which are an integral part of the financial statements.
192 Global Equity Fund
Russell Investment Company
Global Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 9,004 | $ | 24,536 | ||
Net realized gain (loss) | 180,300 | 161,661 | ||||
Net change in unrealized appreciation (depreciation) | 97,234 | (171,485 | ) | |||
Net increase (decrease) in net assets from operations | 286,538 | 14,712 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (148 | ) | (199 | ) | ||
Class C | (49 | ) | (76 | ) | ||
Class E | (514 | ) | (626 | ) | ||
Class S | (24,064 | ) | (31,594 | ) | ||
Class Y | (10,394 | ) | (14,045 | ) | ||
From net realized gain | ||||||
Class A | (822 | ) | (1,154 | ) | ||
Class C | (734 | ) | (1,095 | ) | ||
Class E | (2,776 | ) | (3,782 | ) | ||
Class S | (108,287 | ) | (159,149 | ) | ||
Class Y | (41,418 | ) | (62,668 | ) | ||
Net decrease in net assets from distributions | (189,206 | ) | (274,388 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 479 | (193,436 | ) | |||
Total Net Increase (Decrease) in Net Assets | 97,811 | (453,112 | ) | |||
Net Assets | ||||||
Beginning of period | 2,385,317 | 2,838,429 | ||||
End of period | $ | 2,483,128 | $ | 2,385,317 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 310 | $ | 26,475 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 193
Russell Investment Company
Global Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 52 | $ | 539 | 299 | $ | 3,050 | ||||||
Proceeds from reinvestment of distributions | 95 | 949 | 134 | 1,323 | ||||||||
Payments for shares redeemed | (211 | ) | (2,200 | ) | (387 | ) | (3,920 | ) | ||||
Net increase (decrease) | (64 | ) | (712 | ) | 46 | 453 | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 80 | 820 | 129 | 1,285 | ||||||||
Proceeds from reinvestment of distributions | 79 | 782 | 119 | 1,169 | ||||||||
Payments for shares redeemed | (200 | ) | (2,045 | ) | (353 | ) | (3,523 | ) | ||||
Net increase (decrease) | (41 | ) | (443 | ) | (105 | ) | (1,069 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 118 | 1,220 | 302 | 3,027 | ||||||||
Proceeds from reinvestment of distributions | 318 | 3,180 | 422 | 4,177 | ||||||||
Payments for shares redeemed | (4,345 | ) | (44,102 | ) | (723 | ) | (7,299 | ) | ||||
Net increase (decrease) | (3,909 | ) | (39,702 | ) | 1 | (95 | ) | |||||
Class S | ||||||||||||
Proceeds from shares sold | 18,791 | 194,642 | 23,374 | 235,992 | ||||||||
Proceeds from reinvestment of distributions | 13,066 | 130,657 | 18,937 | 187,478 | ||||||||
Payments for shares redeemed | (26,170 | ) | (272,439 | ) | (55,252 | ) | (554,916 | ) | ||||
Net increase (decrease) | 5,687 | 52,860 | (12,941 | ) | (131,446 | ) | ||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 298 | 3,142 | — | — | ||||||||
Payments for shares redeemed | (—)** | (3 | ) | — | — | |||||||
Net increase (decrease) | 298 | 3,139 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 2,974 | 30,204 | 2,770 | 27,413 | ||||||||
Proceeds from reinvestment of distributions | 5,176 | 51,813 | 7,741 | 76,713 | ||||||||
Payments for shares redeemed | (9,155 | ) | (96,680 | ) | (15,977 | ) | (165,405 | ) | ||||
Net increase (decrease) | (1,005 | ) | (14,663 | ) | (5,466 | ) | (61,279 | ) | ||||
Total increase (decrease) | 966 | $ | 479 | (18,465 | ) | $ | (193,436 | ) |
** Less than 500 shares.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
194 Global Equity Fund
(This page intentionally left blank)
Russell Investment Company
Global Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||||
Class A | ||||||||||||||||||
April 30, 2017* | 10.35 | .02 | 1.18 | 1.20 | (.12 | ) | (.69 | ) | ||||||||||
October 31, 2016 | 11.40 | .07 | (.01 | ) | .06 | (.16 | ) | (.95 | ) | |||||||||
October 31, 2015 | 11.72 | .09 | .32 | .41 | (.15 | ) | (.58 | ) | ||||||||||
October 31, 2014 | 11.07 | .07 | .83 | .90 | (.05 | ) | (.20 | ) | ||||||||||
October 31, 2013 | 8.76 | .07 | 2.31 | 2.38 | (.07 | ) | — | |||||||||||
October 31, 2012 | 8.37 | .06 | .38 | .44 | (.05 | ) | — | |||||||||||
Class C | ||||||||||||||||||
April 30, 2017* | 10.21 | (.02 | ) | 1.18 | 1.16 | (.05 | ) | (.69 | ) | |||||||||
October 31, 2016 | 11.24 | (.01 | ) | (.01 | ) | (.02 | ) | (.06 | ) | (.95 | ) | |||||||
October 31, 2015 | 11.55 | —(f) | .33 | .33 | (.06 | ) | (.58 | ) | ||||||||||
October 31, 2014 | 10.96 | (.02 | ) | .81 | .79 | —(f) | (.20 | ) | ||||||||||
October 31, 2013 | 8.66 | (.01 | ) | 2.31 | 2.30 | — | — | |||||||||||
October 31, 2012 | 8.29 | —(f) | .37 | .37 | — | — | ||||||||||||
Class E | ||||||||||||||||||
April 30, 2017* | 10.37 | —(f) | 1.21 | 1.21 | (.13 | ) | (.69 | ) | ||||||||||
October 31, 2016 | 11.41 | .07 | — (f) | .07 | (.16 | ) | (.95 | ) | ||||||||||
October 31, 2015 | 11.72 | .09 | .32 | .41 | (.14 | ) | (.58 | ) | ||||||||||
October 31, 2014 | 11.07 | .07 | .82 | .89 | (.04 | ) | (.20 | ) | ||||||||||
October 31, 2013 | 8.76 | .07 | 2.31 | 2.38 | (.07 | ) | — | |||||||||||
October 31, 2012 | 8.38 | .06 | .37 | .43 | (.05 | ) | — | |||||||||||
Class S | ||||||||||||||||||
April 30, 2017* | 10.40 | .04 | 1.18 | 1.22 | (.15 | ) | (.69 | ) | ||||||||||
October 31, 2016 | 11.45 | .09 | — (f) | .09 | (.19 | ) | (.95 | ) | ||||||||||
October 31, 2015 | 11.77 | .12 | .32 | .44 | (.18 | ) | (.58 | ) | ||||||||||
October 31, 2014 | 11.11 | .09 | .84 | .93 | (.07 | ) | (.20 | ) | ||||||||||
October 31, 2013 | 8.79 | .09 | 2.33 | 2.42 | (.10 | ) | — | |||||||||||
October 31, 2012 | 8.41 | .08 | .37 | .45 | (.07 | ) | — | |||||||||||
Class T | ||||||||||||||||||
April 30, 2017(10) | 10.64 | .02 | .13 | .15 | — | — | ||||||||||||
Class Y | ||||||||||||||||||
April 30, 2017* | 10.42 | .05 | 1.19 | 1.24 | (.17 | ) | (.69 | ) | ||||||||||
October 31, 2016 | 11.48 | .12 | (.02 | ) | .10 | (.21 | ) | (.95 | ) | |||||||||
October 31, 2015 | 11.79 | .14 | .33 | .47 | (.20 | ) | (.58 | ) | ||||||||||
October 31, 2014 | 11.14 | .12 | .82 | .94 | (.09 | ) | (.20 | ) | ||||||||||
October 31, 2013 | 8.81 | .11 | 2.33 | 2.44 | (.11 | ) | — | |||||||||||
October 31, 2012 | 8.42 | .10 | .38 | .48 | (.09 | ) | — | |||||||||||
See accompanying notes which are an integral part of the financial statements.
196 Global Equity Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b)(k) | ||||||||||
(.81 | ) | 10.74 | 12.23 | 12,610 | 1.49 | 1.49 | .45 | 40 | ||||||||||
(1.11 | ) | 10.35 | 1.02 | 12,807 | 1.50 | 1.50 | .72 | 46 | ||||||||||
(.73 | ) | 11.40 | 3.56 | 13,589 | 1.49 | 1.49 | .75 | 47 | ||||||||||
(.25 | ) | 11.72 | 8.18 | 12,819 | 1.49 | 1.49 | .59 | 39 | ||||||||||
(.07 | ) | 11.07 | 27.37 | 11,427 | 1.49 | 1.49 | .67 | 82 | ||||||||||
(.05 | ) | 8.76 | 5.32 | 9,684 | 1.48 | 1.48 | .72 | 107 | ||||||||||
(.74 | ) | 10.63 | 11.85 | 11,075 | 2.24 | 2.24 | (.31 | ) | 40 | |||||||||
(1.01 | ) | 10.21 | .24 | 11,059 | 2.25 | 2.25 | (.06 | ) | 46 | |||||||||
(.64 | ) | 11.24 | 2.87 | 13,356 | 2.24 | 2.24 | — (i) | 47 | ||||||||||
(.20 | ) | 11.55 | 7.26 | 14,286 | 2.24 | 2.24 | (.16 | ) | 39 | |||||||||
— | 10.96 | 26.56 | 14,118 | 2.24 | 2.24 | (.08 | ) | 82 | ||||||||||
— | 8.66 | 4.46 | 11,794 | 2.23 | 2.23 | (.02 | ) | 107 | ||||||||||
(.82 | ) | 10.76 | 12.24 | 1,688 | 1.48 | 1.48 | .01 | 40 | ||||||||||
(1.11 | ) | 10.37 | 1.04 | 42,161 | 1.50 | 1.50 | .69 | 46 | ||||||||||
(.72 | ) | 11.41 | 3.59 | 46,407 | 1.49 | 1.49 | .75 | 47 | ||||||||||
(.24 | ) | 11.72 | 8.15 | 53,265 | 1.49 | 1.49 | .60 | 39 | ||||||||||
(.07 | ) | 11.07 | 27.41 | 56,210 | 1.49 | 1.49 | .67 | 82 | ||||||||||
(.05 | ) | 8.76 | 5.25 | 47,176 | 1.48 | 1.48 | .71 | 107 | ||||||||||
(.84 | ) | 10.78 | 12.38 | 1,782,313 | 1.24 | 1.24 | .70 | 40 | ||||||||||
(1.14 | ) | 10.40 | 1.26 | 1,659,879 | 1.25 | 1.25 | .94 | 46 | ||||||||||
(.76 | ) | 11.45 | 3.80 | 1,976,080 | 1.24 | 1.24 | .99 | 47 | ||||||||||
(.27 | ) | 11.77 | 8.48 | 2,240,991 | 1.24 | 1.24 | .83 | 39 | ||||||||||
(.10 | ) | 11.11 | 27.74 | 2,078,046 | 1.24 | 1.24 | .92 | 82 | ||||||||||
(.07 | ) | 8.79 | 5.49 | 1,538,904 | 1.23 | 1.23 | .97 | 107 | ||||||||||
— | 10.79 | 1.41 | 3,214 | 1.24 | 1.14 | 1.50 | 40 | |||||||||||
(.86 | ) | 10.80 | 12.47 | 672,228 | 1.04 | 1.04 | .89 | 40 | ||||||||||
(1.16 | ) | 10.42 | 1.40 | 659,411 | 1.05 | 1.05 | 1.14 | 46 | ||||||||||
(.78 | ) | 11.48 | 4.09 | 788,997 | 1.04 | 1.04 | 1.20 | 47 | ||||||||||
(.29 | ) | 11.79 | 8.56 | 1,007,799 | 1.04 | 1.04 | 1.06 | 39 | ||||||||||
(.11 | ) | 11.14 | 28.01 | 1,067,614 | 1.04 | 1.04 | 1.13 | 82 | ||||||||||
(.09 | ) | 8.81 | 5.79 | 1,043,120 | 1.05 | 1.05 | 1.18 | 107 |
See accompanying notes which are an integral part of the financial statements.
Global Equity Fund 197
Russell Investment Company
Global Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 1,899,999 |
Administration fees | 97,267 | |
Distribution fees | 9,408 | |
Shareholder servicing fees | 2,612 | |
Transfer agent fees | 294,946 | |
Trustee fees | 10,906 | |
$ | 2,315,138 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Collateral Fund | $ | 34,570 | $ | 298,163 | $ | 285,502 | $ | — | $ — | $ | 47,231 | $ | 134 | $ | — | |||
U.S. Cash Management Fund | 64,986 | 707,429 | 689,508 | — | (4) | 82,903 | 450 | — | ||||||||||
$ | 99,556 | $ | 1,005,592 | $ | 975,010 | $ | — | $ (4) | $ | 130,134 | $ | 584 | $ | — |
Federal Income Taxes (Unaudited)
At October 31, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 2,093,517,688 | |||
Unrealized Appreciation | $ | 489,944,164 | |||
Unrealized Depreciation | (44,184,805 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 445,759,359 |
See accompanying notes which are an integral part of the financial statements.
198 Global Equity Fund
Russell Investment Company
Emerging Markets Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,106.80 | $ | 1,016.22 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 9.04 | $ | 8.65 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.73% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$2,000 (for example, an $9,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,102.60 | $ | 1,012.50 | |
Expenses Paid During Period* | $ | 12.93 | $ | 12.37 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 2.48% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,106.90 | $ | 1,016.22 | |
of other funds. | Expenses Paid During Period* | $ | 9.04 | $ | 8.65 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.73% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Emerging Markets Fund 199
Russell Investment Company
Emerging Markets Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class R6 | Performance | expenses) | Class Y | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 1,109.20 | $ | 1,018.25 | April 30, 2017 | $ | 1,109.40 | $ | 1,018.40 | |||
Expenses Paid During Period* | $ | 6.90 | $ | 6.61 | Expenses Paid During Period* | $ | 6.75 | $ | 6.46 | |||
* Expenses are equal to the Fund's annualized expense ratio of 1.32% | * Expenses are equal to the Fund's annualized expense ratio of 1.29% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the six month period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | year period). May reflect amounts waived and/or reimbursed. Without any | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | waivers and/or reimbursements, expenses would have been higher. | |||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,108.70 | $ | 1,017.46 | ||||||||
Expenses Paid During Period* | $ | 7.74 | $ | 7.40 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.48% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class T | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,017.30 | $ | 1,018.00 | ||||||||
Expenses Paid During Period* | $ | 1.70 | $ | 6.85 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.37% | ||||||||||||
(representing the 45-day period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
1.37% (representing the six-month period annualized), multiplied by the | ||||||||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||||||||
on-half year period). |
200 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Common Stocks - 93.2% | M Dias Branco SA(Æ) | 35,328 | 542 | ||||||||
Argentina - 1.7% | MRV Engenharia e Participacoes SA | 323,474 | 1,624 | ||||||||
Banco Macro SA - ADR | 54,897 | 4,706 | Natura Cosmeticos SA | 396,533 | 3,779 | ||||||
Cresud SACIF y A - ADR(Æ) | 354,622 | 7,454 | Petroleo Brasileiro SA - ADR(Æ) | 711,800 | 6,413 | ||||||
IRSA Inversiones y Representaciones | Porto Seguro SA(Æ) | 289,614 | 2,621 | ||||||||
SA - ADR(Æ) | 108,400 | 2,734 | Sao Martinho SA | 149,648 | 839 | ||||||
Pampa Energia SA - ADR(Æ) | 118,427 | 6,459 | Telefonica Brasil SA - ADR | 555,585 | 8,217 | ||||||
Siderar SAIC Class A | 5,271,834 | 3,989 | Tim Participacoes SA | 766,000 | 2,476 | ||||||
YPF SA - ADR | 555,200 | 14,341 | TIM Participacoes SA - ADR | 435,100 | 7,009 | ||||||
39,683 | Transmissora Alianca de Energia | ||||||||||
Eletrica SA | 301,373 | 2,185 | |||||||||
Bangladesh - 0.5% | Vale SA Class B - ADR(Æ)(Ñ) | 816,047 | 6,700 | ||||||||
Beximco Pharmaceuticals, Ltd. | 3,075,029 | 4,118 | Vale SA Class B - ADR | 554,100 | 4,754 | ||||||
BRAC Bank, Ltd. | 8,111,464 | 7,113 | WEG SA | 272,340 | 1,519 | ||||||
11,231 | 163,569 | ||||||||||
Bermuda - 0.3% | Cambodia - 0.1% | ||||||||||
Credicorp, Ltd. | 35,550 | 5,463 | NagaCorp, Ltd. | 3,593,624 | 1,996 | ||||||
K Wah International Holdings, Ltd. | 465,000 | 296 | |||||||||
Kunlun Energy Co., Ltd. | 366,000 | 330 | Cayman Islands - 4.5% | ||||||||
6,089 | Baidu, Inc. - ADR(Æ) | 75,289 | 13,569 | ||||||||
Changyou.com, Ltd. - ADR(Æ)(Ñ) | 29,800 | 973 | |||||||||
Brazil - 7.0% | China Evergrande Group(Ñ) | 2,518,000 | 2,680 | ||||||||
Ambev SA - ADR | 1,186,885 | 6,800 | China Hongqiao Group, Ltd.(Ñ) | 1,333,500 | 1,209 | ||||||
Ambev SA | 151,071 | 869 | China Mengniu Dairy Co., Ltd. | 1,579,000 | 3,059 | ||||||
Azul SA - ADR(Æ)(Ñ) | 108,195 | 2,457 | China Yongda Automobiles Services | ||||||||
B2W - Companhia Digital(Æ) | 423,676 | 1,753 | Holdings, Ltd.(Ñ) | 768,000 | 713 | ||||||
B2W Cia Digital(Æ) | 1,319,033 | 5,560 | China ZhengTong Auto Services | ||||||||
Banco Bradesco SA - ADR | 911,962 | 9,621 | Holdings, Ltd. | 193,000 | 106 | ||||||
Banco Bradesco SA(Æ) | 48,800 | 500 | China Zhongwang Holdings, Ltd. | 831,200 | 377 | ||||||
Banco do Brasil SA(Æ) | 473,642 | 4,902 | CIFI Holdings Group Co., Ltd. | 10,848,000 | 3,915 | ||||||
Banco Santander Brasil SA - ADR(Ñ) | 159,500 | 1,367 | CKH Food & Health, Ltd.(Æ) | 175,432 | 201 | ||||||
BM&FBovespa SA - Bolsa de Valores | General Interface Solution Holding, Ltd. | 509,000 | 2,845 | ||||||||
Mercadorias e Futuros(Æ) | 827,400 | 4,956 | Li Ning Co., Ltd.(Æ) | 2,291,000 | 1,506 | ||||||
BR Malls Participacoes SA(Æ) | 752,012 | 3,329 | Lonking Holdings, Ltd. | 962,000 | 268 | ||||||
Braskem SA - ADR | 80,423 | 1,734 | Momo, Inc. - ADR(Æ) | 9,200 | 349 | ||||||
BRF SA - ADR(Æ) | 454,661 | 5,656 | Nexteer Automotive Group, Ltd. | 437,000 | 680 | ||||||
BRF SA(Æ) | 100,800 | 1,264 | Powerlong Real Estate Holdings, Ltd. | 248,000 | 117 | ||||||
BTG Pactual Group(Æ) | 257,300 | 1,507 | Shenzhou International Group Holdings, | ||||||||
Centrais Eletricas Brasileiras SA(Æ) | 653,700 | 3,719 | Ltd. | 719,000 | 4,721 | ||||||
Cia Brasileira de Distribuicao - ADR(Æ) | SINA Corp.(Æ) | 171,500 | 13,173 | ||||||||
(Ñ) | 249,000 | 5,615 | Sunny Optical Technology Group Co., | ||||||||
Cia de Saneamento Basico do Estado de | Ltd. | 100,000 | 822 | ||||||||
Sao Paulo(Æ) | 168,340 | 1,552 | Tencent Holdings, Ltd. | 1,415,447 | 44,274 | ||||||
Cia de Saneamento Basico do Estado de | Times Property Holdings, Ltd. | 669,000 | 466 | ||||||||
Sao Paulo - ADR(Æ) | 48,800 | 449 | Uni-President China Holdings, Ltd. | 5,007,200 | 3,524 | ||||||
Cia de Saneamento de Minas | Yirendai, Ltd. - ADR(Æ)(Ñ) | 87,092 | 2,174 | ||||||||
Gerais-COPASA(Æ) | 222,904 | 2,529 | YY, Inc. - ADR(Æ) | 52,000 | 2,546 | ||||||
Cia Paranaense de Energia - ADR(Æ)(Ñ) | 31,300 | 287 | Zhongsheng Group Holdings, Ltd. | 768,000 | 1,082 | ||||||
Cielo SA | 278,491 | 2,115 | 105,349 | ||||||||
Construtora Tenda SA(Æ) | 61,949 | 172 | |||||||||
Cosan SA Industria e Comercio | 449,500 | 5,255 | Chile - 0.7% | ||||||||
CVC Brasil Operadora e Agencia de | Banco de Chile | 956,310 | 115 | ||||||||
Viagens SA | 421,576 | 4,112 | Banco Santander Chile - ADR | 110,700 | 2,616 | ||||||
Gafisa SA(Æ) | 61,949 | 355 | CAP SA | 42,958 | 449 | ||||||
Gerdau SA - ADR | 815,021 | 2,486 | Cencosud SA | 30,710 | 87 | ||||||
Grendene SA | 395,651 | 3,073 | Cia Cervecerias Unidas SA - ADR(Ñ) | 254,847 | 4,215 | ||||||
Itau Unibanco Holding SA - ADR | 1,880,420 | 23,129 | Colbun SA | 454,717 | 101 | ||||||
JBS SA | 2,400,500 | 7,768 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 201
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Empresa Nacional de Electricidad SA | 81,277 | 62 | China Telecom Corp., Ltd. Class H | 24,839,900 | 12,163 | ||||||
Empresa Nacional de | China Vanke Co., Ltd. Class H | 621,000 | 1,573 | ||||||||
Telecomunicaciones SA | 249,352 | 2,994 | Chongqing Changan Automobile Co., | ||||||||
Enersis Chile SA | 23,386,139 | 2,580 | Ltd. Class B | 327,200 | 433 | ||||||
Enersis SA(Æ) | 12,857,553 | 2,544 | Chongqing Rural Commercial Bank Co., | ||||||||
15,763 | Ltd. Class H | 2,888,000 | 1,984 | ||||||||
CNOOC, Ltd. - ADR(Ñ) | 66,246 | 7,694 | |||||||||
China - 14.7% | Country Garden Holdings Co., Ltd. | 1,883,000 | 1,789 | ||||||||
51job, Inc. - ADR(Æ)(Ñ) | 93,988 | 3,853 | CRRC Corp., Ltd. | 604,000 | 589 | ||||||
Agile Group Holdings, Ltd. | 1,532,000 | 1,367 | Ctrip.com International, Ltd. - ADR(Æ) | 168,010 | 8,487 | ||||||
Agricultural Bank of China, Ltd. Class H | 23,926,000 | 11,026 | Dongfeng Motor Group Co., Ltd. Class H | 1,686,000 | 1,771 | ||||||
Alibaba Group Holding, Ltd. - ADR(Æ) | 341,751 | 39,471 | ENN Energy Holdings, Ltd. | 778,100 | 4,215 | ||||||
Anhui Conch Cement Co., Ltd. Class H | 2,898,096 | 10,164 | Fufeng Group, Ltd.(Æ) | 1,055,000 | 717 | ||||||
Autohome, Inc. - ADR(Æ) | 35,900 | 1,242 | Future Land Development Holdings, Ltd. | 498,000 | 147 | ||||||
BAIC Motor Corp., Ltd. Class H(Þ) | 2,681,500 | 2,583 | Geely Automobile Holdings, Ltd. | 1,980,000 | 2,657 | ||||||
Bank of China, Ltd. Class H | 27,360,000 | 13,232 | Great Wall Motor Co., Ltd. Class H | 2,659,000 | 2,877 | ||||||
Bank of Communications Co., Ltd. Class | Guangzhou Automobile Group Co., Ltd. | ||||||||||
H | 2,265,000 | 1,742 | Class H | 3,890,000 | 6,053 | ||||||
Beijing Jingneng Clean Energy Co., Ltd. | Guangzhou R&F Properties Co., Ltd. | 1,760,800 | 2,966 | ||||||||
Class H | 270,000 | 82 | Harbin Electric Co., Ltd. Class H | 622,000 | 380 | ||||||
BYD Electronic International Co., Ltd. | 391,500 | 598 | Huadian Power International Corp., Ltd. | ||||||||
China Cinda Asset Management Co., | Class H | 1,152,000 | 485 | ||||||||
Ltd. Class H | 8,639,000 | 3,284 | Huaneng Power International, Inc. Class | ||||||||
China CITIC Bank Corp., Ltd. Class H | 8,969,000 | 5,688 | H | 696,000 | 480 | ||||||
China Communications Services Corp., | Huaneng Renewables Corp., Ltd. Class | ||||||||||
Ltd. Class H | 1,342,000 | 765 | H | 6,182,000 | 2,160 | ||||||
China Construction Bank Corp. Class H | 21,519,554 | 17,452 | Industrial & Commercial Bank of China, | ||||||||
China Everbright International, Ltd. | 2,601,929 | 3,515 | Ltd. Class H | 32,951,401 | 21,482 | ||||||
China Forestry Holdings Co., Ltd.(Å)(Æ) | 871,100 | — | JA Solar Holdings Co., Ltd. - ADR(Æ) | 74,600 | 523 | ||||||
China Galaxy Securities Co., Ltd. Class | JD.com, Inc. - ADR(Æ) | 201,508 | 7,066 | ||||||||
H | 3,256,640 | 2,976 | Jiangsu Expressway Co., Ltd. Class H | 1,218,000 | 1,798 | ||||||
China Huarong Asset Management Co., | JinkoSolar Holding Co., Ltd. - ADR(Æ) | ||||||||||
Ltd. Class H(Þ) | 2,186,000 | 920 | (Ñ) | 97,700 | 1,694 | ||||||
China Huishan Dairy Holdings Co., Ltd. | 1,269,000 | 69 | Kaisa Group Holdings, Ltd.(Å)(Æ)(Ñ) | 2,803,000 | 840 | ||||||
China Lesso Group Holdings, Ltd. | 111,000 | 88 | Kingsoft Corp., Ltd. | 74,000 | 211 | ||||||
China Life Insurance Co., Ltd. Class H | 1,963,966 | 5,959 | KWG Property Holding, Ltd.(Æ) | 1,491,500 | 1,128 | ||||||
China Longyuan Power Group Corp., | Lenovo Group, Ltd. | 5,814,150 | 3,720 | ||||||||
Ltd. Class H | 4,307,057 | 3,312 | Logan Property Holdings Co., Ltd. | 880,000 | 503 | ||||||
China Machinery Engineering Corp. | Luye Pharma Group, Ltd. | 334,500 | 202 | ||||||||
Class H | 208,000 | 155 | Metallurgical Corp. of China, Ltd. Class | ||||||||
China Merchants Bank Co., Ltd. Class H | 2,273,352 | 5,909 | H | 3,214,000 | 1,188 | ||||||
China Merchants Port Holdings Co., Ltd. | 1,030,860 | 2,946 | NetEase, Inc. - ADR | 46,832 | 12,429 | ||||||
China Minsheng Banking Corp., Ltd. | New China Life Insurance Co., Ltd. | ||||||||||
Class H | 756,000 | 743 | Class H | 1,017,100 | 5,021 | ||||||
China National Building Material Co., | People's Insurance Co. Group of China, | ||||||||||
Ltd. Class H | 1,048,000 | 699 | Ltd. (The) Class H | 1,431,000 | 590 | ||||||
China National Materials Co., Ltd. | 335,000 | 118 | PetroChina Co., Ltd. Class H | 12,132,388 | 8,537 | ||||||
China Oilfield Services, Ltd. Class H | 2,235,710 | 2,061 | PICC Property & Casualty Co., Ltd. | ||||||||
China Pacific Insurance Group Co., Ltd. | Class H | 3,996,000 | 6,436 | ||||||||
Class H | 1,678,694 | 6,192 | Ping An Insurance Group Co. of China, | ||||||||
China Petroleum & Chemical Corp. | Ltd. Class H | 420,000 | 2,360 | ||||||||
Class H | 9,668,550 | 7,858 | Real Gold Mining, Ltd.(Å)(Æ) | 463,232 | — | ||||||
China Railway Construction Corp., Ltd. | Shandong Weigao Group Medical | ||||||||||
Class H | 2,100,000 | 2,931 | Polymer Co., Ltd. Class H | 788,000 | 574 | ||||||
China Railway Group, Ltd. Class H | 8,183,712 | 6,928 | Shanghai Fosun Pharmaceutical Group | ||||||||
China Resources Gas Group, Ltd. | 974,114 | 3,290 | Co., Ltd. Class H | 105,500 | 398 | ||||||
China Resources Land, Ltd. | 326,000 | 904 | Shanghai Pharmaceuticals Holding Co., | ||||||||
China Shenhua Energy Co., Ltd. Class H | 1,560,094 | 3,635 | Ltd. Class H | 2,133,700 | 5,653 |
See accompanying notes which are an integral part of the financial statements.
202 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Shenzhen Expressway Co., Ltd. Class H | 378,000 | 345 | China Mobile, Ltd. - ADR | 193,865 | 10,336 | ||||||
Shui On Land, Ltd. | 2,664,500 | 592 | China Overseas Land & Investment, Ltd. | 2,766,698 | 8,025 | ||||||
Sinopec Shanghai Petrochemical Co., | China Power International Development, | ||||||||||
Ltd. Class H | 2,774,000 | 1,552 | Ltd. | 752,000 | 280 | ||||||
Sohu.com, Inc.(Æ) | 196,300 | 7,616 | China Resources Cement Holdings, Ltd. | 766,000 | 420 | ||||||
Tianhe Chemicals Group, Ltd.(Å)(Æ) | 25,778,000 | 2,320 | China Resources Power Holdings Co., | ||||||||
Tianneng Power International, Ltd. | 880,000 | 771 | Ltd. | 852,000 | 1,534 | ||||||
Tingyi Cayman Islands Holding Corp. | 2,466,800 | 3,169 | China Unicom Hong Kong, Ltd. | 7,684,000 | 9,960 | ||||||
Tsingtao Brewery Co., Ltd. Class H | 384,000 | 1,733 | CITIC, Ltd. | 568,000 | 823 | ||||||
Vipshop Holdings, Ltd. - ADR(Æ) | 64,200 | 890 | CNOOC, Ltd. | 1,750,000 | 2,033 | ||||||
Weibo Corp. - ADR(Æ)(Ñ) | 71,050 | 3,969 | CT Environmental Group, Ltd.(Æ)(Ñ) | 12,384,527 | 2,307 | ||||||
Weichai Power Co., Ltd. Class H | 110,000 | 178 | Fosun International, Ltd. | 163,500 | 247 | ||||||
Weiqiao Textile Co. Class H | 136,500 | 98 | GCL-Poly Energy Holdings, Ltd.(Æ) | 5,089,000 | 615 | ||||||
West China Cement, Ltd.(Æ) | 8,495,397 | 1,280 | Guangdong Investment, Ltd. | 238,000 | 368 | ||||||
Yanzhou Coal Mining Co., Ltd. Class H | 378,000 | 327 | Haier Electronics Group Co., Ltd. | 1,895,737 | 4,392 | ||||||
Yuzhou Properties Co., Ltd. | 1,728,000 | 788 | Hanergy Thin Film Power Group, Ltd. | ||||||||
Zijin Mining Group Co., Ltd. Class H | 3,220,000 | 1,143 | (Æ) | 1,630,000 | 819 | ||||||
ZTE Corp. Class H | 528,000 | 1,016 | Hong Kong Exchanges & Clearing, Ltd. | 69,814 | 1,717 | ||||||
343,517 | Hua Hong Semiconductor, Ltd.(Þ) | 1,946,000 | 2,759 | ||||||||
Intime Retail Group Co., Ltd. | 600,500 | 760 | |||||||||
Colombia - 0.2% | Kingboard Chemical Holdings, Ltd. | 1,185,500 | 4,277 | ||||||||
Almacenes Exito SA | 382,554 | 1,982 | Kingboard Laminates Holdings, Ltd. | 910,000 | 1,098 | ||||||
Bancolombia SA - ADR | 67,700 | 2,673 | Nine Dragons Paper Holdings, Ltd. | 838,000 | 903 | ||||||
Ecopetrol SA - ADR | 33,800 | 309 | Shanghai Industrial Holdings, Ltd. | 124,000 | 392 | ||||||
4,964 | Shenzhen International Holdings, Ltd. | 504,500 | 847 | ||||||||
Shimao Property Holdings, Ltd. | 1,349,000 | 2,164 | |||||||||
Cyprus - 0.0% | Sino Biopharmaceutical, Ltd. | 2,653,885 | 2,181 | ||||||||
Ros Agro PLC - GDR | 25,704 | 315 | Sino-Ocean Group Holding, Ltd. | 381,000 | 186 | ||||||
Sinotruk, Ltd. | 727,000 | 505 | |||||||||
Czech Republic - 0.1% | Skyworth Digital Holdings, Ltd. | 2,219,344 | 1,288 | ||||||||
Komercni Banka AS | 82,635 | 3,202 | SmarTone Telecommunications Holdings, | ||||||||
Ltd. | 695,463 | 975 | |||||||||
Egypt - 0.5% | Sun Art Retail Group, Ltd. | 230,500 | 237 | ||||||||
Cleopatra Hospital(Æ) | 1,287,056 | 1,782 | WH Group, Ltd.(Þ) | 1,910,500 | 1,708 | ||||||
Commercial International Bank Egypt | Yue Yuen Industrial Holdings, Ltd. | 577,500 | 2,283 | ||||||||
SAE | 991,440 | 4,059 | Yuexiu Property Co., Ltd. | 5,726,000 | 971 | ||||||
Commercial International Bank Egypt | 98,525 | ||||||||||
SAE - GDR | 395,035 | 1,689 | |||||||||
Eastern Tobacco | 109,282 | 1,345 | Hungary - 0.4% | ||||||||
Edita Food Industries SAE - GDR | 390,842 | 2,732 | MOL Hungarian Oil & Gas PLC | 11,396 | 858 | ||||||
11,607 | OTP Bank PLC | 48,465 | 1,363 | ||||||||
Richter Gedeon Nyrt | 309,655 | 7,501 | |||||||||
Greece - 0.2% | 9,722 | ||||||||||
Alpha Bank AE(Æ) | 1,924,778 | 4,087 | |||||||||
Sarantis SA | 107,597 | 1,358 | India - 9.0% | ||||||||
5,445 | Adani Ports & Special Economic Zone, | ||||||||||
Ltd.(Æ) | 502,378 | 2,555 | |||||||||
Hong Kong - 4.2% | Aditya Birla Nuvo, Ltd. | 11,670 | 301 | ||||||||
AIA Group, Ltd. | 1,046,000 | 7,235 | Ambuja Cements, Ltd. | 763,855 | 2,917 | ||||||
ASM Pacific Technology, Ltd. | 459,186 | 6,836 | Apollo Hospitals Enterprise, Ltd.(Æ) | 67,972 | 1,303 | ||||||
Beijing Enterprises Holdings, Ltd. | 226,000 | 1,103 | Asian Paints, Ltd. | 90,052 | 1,568 | ||||||
Brilliance China Automotive Holdings, | Aurobindo Pharma, Ltd. | 309,584 | 2,915 | ||||||||
Ltd. | 1,998,178 | 3,344 | Axis Bank, Ltd. | 1,130,755 | 8,937 | ||||||
China Agri-Industries Holdings, Ltd.(Æ) | 4,857,000 | 2,398 | Bajaj Auto, Ltd. | 41,856 | 1,862 | ||||||
China Everbright, Ltd. | 2,356,000 | 5,385 | Bharat Petroleum Corp., Ltd. | 143,757 | 1,607 | ||||||
China Lumena New Materials Corp.(Æ) | 3,024,000 | 4 | Bharti Airtel, Ltd. | 537,890 | 2,969 | ||||||
China Metal Recycling Holdings, Ltd. | Bharti Infratel, Ltd. | 375,700 | 2,074 | ||||||||
(Å)(Æ) | 335,400 | — | Bosch, Ltd. | 2,698 | 963 | ||||||
China Mobile, Ltd. | 451,500 | 4,810 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 203
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Britannia Industries, Ltd. | 15,291 | 863 | Prism Cement, Ltd.(Æ) | 613,836 | 1,169 | |||||
Cadila Healthcare, Ltd. | 73,993 | 506 | Punjab National Bank(Æ) | 480,681 | 1,261 | |||||
Castrol India, Ltd. | 89,107 | 606 | Rajesh Exports, Ltd. | 64,633 | 619 | |||||
Chennai Petroleum Corp., Ltd. | 141,976 | 842 | Reliance Communications, Ltd.(Æ) | 372,790 | 199 | |||||
Cipla, Ltd. | 71,497 | 620 | Reliance Industries, Ltd.(Æ) | 877,234 | 19,060 | |||||
Coal India, Ltd. | 313,682 | 1,348 | Reliance Industries, Ltd. - GDR(Æ)(Þ) | 337,228 | 14,584 | |||||
Cummins India, Ltd. | 38,007 | 589 | Reliance Power, Ltd.(Æ) | 314,638 | 239 | |||||
Dabur India, Ltd. Class A | 869,081 | 3,872 | Rural Electrification Corp., Ltd. | 1,272,080 | 4,005 | |||||
Dilip Buildcon, Ltd.(Æ)(Þ) | 264,248 | 1,741 | Shriram City Union Finance, Ltd. | 31,104 | 1,083 | |||||
Divi's Laboratories, Ltd.(Æ) | 39,665 | 388 | State Bank of India | 970,480 | 4,381 | |||||
Dr Reddy's Laboratories, Ltd. | 26,191 | 1,059 | Sun Pharmaceutical Industries, Ltd. | 304,730 | 3,042 | |||||
Eicher Motors, Ltd. | 2,868 | 1,165 | Tata Chemicals, Ltd. | 230,533 | 2,352 | |||||
Exide Industries, Ltd. | 309,981 | 1,107 | Tata Consultancy Services, Ltd. | 151,676 | 5,359 | |||||
Federal Bank, Ltd. | 1,175,770 | 1,965 | Tata Motors, Ltd. Class A | 665,558 | 2,893 | |||||
GAIL India, Ltd. | 175,181 | 1,157 | Tata Motors, Ltd. | 231,022 | 1,651 | |||||
GlaxoSmithKline Consumer Healthcare, | Tata Power Co., Ltd. | 756,724 | 993 | |||||||
Ltd. | 3,173 | 253 | Tata Steel, Ltd. | 194,255 | 1,355 | |||||
Glenmark Pharmaceuticals, Ltd. | 49,125 | 684 | Tech Mahindra, Ltd. | 291,498 | 1,889 | |||||
Godrej Consumer Products, Ltd. | 58,665 | 1,591 | Titan Co., Ltd.(Æ) | 44,535 | 325 | |||||
Havells India, Ltd. | 2,597 | 20 | Torrent Pharmaceuticals, Ltd. | 19,068 | 421 | |||||
HCL Technologies, Ltd. | 106,665 | 1,352 | United Phosphorus, Ltd. | 122,112 | 1,529 | |||||
Hero MotoCorp, Ltd. | 37,022 | 1,908 | Vedanta, Ltd. | 2,253,921 | 8,522 | |||||
Hindalco Industries, Ltd. | 1,118,056 | 3,460 | Videocon d2h, Ltd. - ADR(Æ) | 164,856 | 1,767 | |||||
Hindustan Petroleum Corp., Ltd. | 167,386 | 1,394 | Wipro, Ltd. | 151,090 | 1,161 | |||||
Hindustan Unilever, Ltd. | 96,665 | 1,404 | Yes Bank, Ltd. | 50,068 | 1,267 | |||||
Hindustan Zinc, Ltd. | 62,303 | 260 | Zee Entertainment Enterprises, Ltd. | 152,544 | 1,248 | |||||
Housing Development Finance Corp., | 210,957 | |||||||||
Ltd. | 305,632 | 7,320 | ||||||||
ICICI Bank, Ltd. - ADR | 1,386,346 | 11,881 | Indonesia - 1.5% | |||||||
ICICI Bank, Ltd. | 470,659 | 2,044 | Adaro Energy Tbk PT | 8,150,200 | 1,085 | |||||
ICICI Prudential Life Insurance Co., | Astra International Tbk PT | 13,242,100 | 8,884 | |||||||
Ltd.(Þ) | 449,250 | 2,837 | Bank Central Asia Tbk PT | 486,500 | 645 | |||||
IDFC Bank, Ltd. | 1,184,646 | 1,214 | Bank Mandiri Persero Tbk PT | 602,300 | 529 | |||||
Indiabulls Housing Finance Ltd | 35,021 | 553 | Bank Negara Indonesia Persero Tbk PT | 1,217,000 | 582 | |||||
Indian Oil Corp., Ltd. | 475,916 | 3,264 | Bank Rakyat Indonesia Persero Tbk PT | 10,212,359 | 9,881 | |||||
Infosys, Ltd. | 168,431 | 2,409 | Bumi Serpong Damai Tbk PT | 11,271,044 | 1,515 | |||||
ITC, Ltd. | 630,875 | 2,728 | Gajah Tunggal Tbk PT(Æ) | 357,300 | 28 | |||||
JSW Steel, Ltd. | 164,675 | 509 | Gudang Garam Tbk PT | 108,400 | 540 | |||||
L&T Technology Services, Ltd.(Å) | 48,054 | 574 | Indo Tambangraya Megah Tbk PT | 434,600 | 624 | |||||
LIC Housing Finance, Ltd. | 119,331 | 1,241 | Media Nusantara Citra Tbk PT | 20,002,333 | 2,737 | |||||
Lupin, Ltd. | 56,065 | 1,167 | Perusahaan Gas Negara Persero Tbk | 12,306,454 | 2,241 | |||||
Mahindra & Mahindra, Ltd. | 54,873 | 1,138 | Sarana Menara Nusantara Tbk PT(Æ) | 4,270,900 | 1,243 | |||||
Manappuram Finance, Ltd. | 205,278 | 299 | Semen Indonesia Persero Tbk PT | 3,438,381 | 2,275 | |||||
Marico, Ltd. | 192,408 | 944 | Tambang Batubara Bukit Asam Persero | |||||||
Maruti Suzuki India, Ltd. | 46,540 | 4,717 | Tbk PT | 1,166,600 | 1,107 | |||||
Motherson Sumi Systems, Ltd.(Æ) | 177,703 | 1,107 | Telekomunikasi Indonesia Persero Tbk | |||||||
Muthoot Finance, Ltd. | 14,921 | 92 | PT | 3,328,000 | 1,090 | |||||
Nestle India, Ltd. | 2,638 | 275 | Unilever Indonesia Tbk PT | 75,100 | 251 | |||||
NHPC, Ltd. | 3,093,735 | 1,527 | United Tractors Tbk PT | 86,200 | 174 | |||||
NMDC, Ltd. | 140,034 | 278 | 35,431 | |||||||
NTPC, Ltd. | 755,697 | 1,935 | ||||||||
Oil & Natural Gas Corp., Ltd. | 1,476,956 | 4,286 | Jersey - 0.1% | |||||||
Oil India, Ltd. | 296,192 | 1,509 | Randgold Resources, Ltd. | 30,648 | 2,698 | |||||
Oracle Financial Services Software, Ltd. | 12,376 | 686 | ||||||||
Page Industries, Ltd. | 5,986 | 1,353 | Kazakhstan - 0.0% | |||||||
Pidilite Industries, Ltd. | 100,410 | 1,123 | KazMunaiGas Exploration Production | |||||||
Piramal Enterprises, Ltd. Class A(Æ) | 117,581 | 4,560 | JSC - GDR(Æ) | 113,257 | 1,099 | |||||
Power Finance Corp., Ltd. | 1,968,108 | 4,888 |
See accompanying notes which are an integral part of the financial statements.
204 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Kenya - 0.2% | Grupo Aeroportuario del Sureste SAB de | ||||||||||
East African Breweries, Ltd. | 384,449 | 857 | CV Class B | 27,070 | 514 | ||||||
Safaricom, Ltd. | 21,937,739 | 4,092 | Grupo Aeroportuario del Sureste SAB de | ||||||||
4,949 | CV - ADR | 21,400 | 4,053 | ||||||||
Grupo Bimbo SAB de CV | 172,600 | 422 | |||||||||
Kuwait - 0.2% | Grupo Cementos de Chihuahua SAB | ||||||||||
National Bank of Kuwait SAKP | 1,553,146 | 3,471 | de CV | 329,500 | 1,563 | ||||||
VIVA Kuwait Telecom Co. | 662,906 | 1,787 | Grupo Fin Santander ADR B - ADR | 300,000 | 2,733 | ||||||
5,258 | Grupo Financiero Banorte SAB de CV | ||||||||||
Class O | 1,827,304 | 10,575 | |||||||||
Luxembourg - 0.3% | Grupo Lala SAB de CV Class B | 142,400 | 258 | ||||||||
Samsonite International SA | 698,666 | 2,697 | Grupo Sanborns SAB de CV | 142,600 | 164 | ||||||
Tenaris SA - ADR | 109,400 | 3,416 | Grupo Simec SAB de CV Class B(Æ) | 35,080 | 130 | ||||||
6,113 | Grupo Televisa SAB - ADR | 367,200 | 8,923 | ||||||||
Industrias Bachoco SAB de CV | 374,450 | 1,671 | |||||||||
Macao - 0.3% | Industrias CH SAB de CV(Æ) | 3,395 | 18 | ||||||||
Sands China, Ltd. | 1,464,255 | 6,651 | Kimberly-Clark de Mexico SAB de CV | ||||||||
Class A | 1,423,617 | 3,039 | |||||||||
Malaysia - 0.6% | Macquarie Mexico Real Estate | ||||||||||
AirAsia BHD | 3,618,900 | 2,790 | Management SA de CV(Æ)(ö) | 315,986 | 346 | ||||||
AirAsia X BHD(Æ) | 3,998,800 | 415 | Megacable Holdings SAB de CV | 695,462 | 2,639 | ||||||
AMMB Holdings BHD | 134,000 | 169 | Mexichem SAB de CV | 704,620 | 1,929 | ||||||
British American Tobacco Malaysia BHD | 232,432 | 2,432 | Nemak SAB de CV(Þ) | 44,056 | 47 | ||||||
CIMB Group Holdings BHD | 125,300 | 166 | OHL Mexico SAB de CV | 697,332 | 856 | ||||||
IHH Healthcare BHD | 209,400 | 298 | Promotora y Operadora de | ||||||||
IJM Corp. BHD | 2,712,183 | 2,187 | Infraestructura SAB de CV | 31,287 | 334 | ||||||
Kuala Lumpur Kepong BHD | 57,800 | 327 | Wal-Mart de Mexico SAB de CV | 1,166,493 | 2,634 | ||||||
Malayan Banking BHD | 401,700 | 888 | 87,113 | ||||||||
MISC Berhad | 52,900 | 89 | |||||||||
Petronas Dagangan BHD | 111,900 | 621 | Morocco - 0.1% | ||||||||
Petronas Gas BHD | 54,700 | 233 | Residences Dar Saada | 112,171 | 1,996 | ||||||
Public Bank BHD | 73,000 | 335 | |||||||||
Steppe Cement, Ltd.(Æ) | 1,139,180 | 229 | Netherlands - 0.5% | ||||||||
Tenaga Nasional BHD | 367,300 | 1,180 | X5 Retail Group NV - GDR(Æ) | 277,109 | 9,768 | ||||||
UEM Sunrise BHD | 2,845,500 | 812 | Yandex NV Class A(Æ) | 87,100 | 2,374 | ||||||
Westports Holdings BHD | 303,200 | 279 | 12,142 | ||||||||
13,450 | |||||||||||
Nigeria - 0.5% | |||||||||||
Mexico - 3.7% | Dangote Cement PLC | 5,197,285 | 2,205 | ||||||||
Alsea SAB de CV | 613,158 | 2,179 | Guaranty Trust Bank PLC | 74,100,236 | 5,265 | ||||||
America Movil SAB de CV Class L | Guaranty Trust Bank PLC - GDR | 101,104 | 445 | ||||||||
- ADR | 692,557 | 10,659 | Guinness Nigeria PLC | 4,779,211 | 765 | ||||||
Arca Continental SAB de CV | 38,500 | 284 | Lekoil, Ltd.(Æ) | 8,776,830 | 2,218 | ||||||
Cemex SAB de CV - ADR(Æ) | 1,000,823 | 9,228 | 10,898 | ||||||||
Coca-Cola Femsa SAB de CV - ADR(Ñ) | 92,460 | 6,722 | |||||||||
Coca-Cola Femsa SAB de CV | 91,885 | 668 | Pakistan - 1.1% | ||||||||
Fomento Economico Mexicano SAB de | Engro Corp., Ltd. | 384,276 | 1,294 | ||||||||
CV | 79,900 | 719 | Hascol Petroleum, Ltd. | 1,352,500 | 4,528 | ||||||
Fomento Economico Mexicano SAB de | Lucky Cement, Ltd. | 470,682 | 3,963 | ||||||||
CV - ADR | 64,300 | 5,790 | Maple Leaf Cement Factory, Ltd. | 1,423,000 | 1,672 | ||||||
Genomma Lab Internacional SAB de CV | Pak Elektron, Ltd. | 3,144,372 | 3,463 | ||||||||
Class B(Æ) | 2,374,521 | 2,996 | Searle Co., Ltd. (The) | 327,898 | 1,945 | ||||||
Gentera SAB de CV | 730,480 | 1,225 | Sui Northern Gas Pipelines, Ltd.(Æ) | 2,453,684 | 3,657 | ||||||
Gruma SAB de CV Class B | 46,599 | 622 | United Bank, Ltd. | 1,741,715 | 4,129 | ||||||
Grupo Aeroportuario del Centro Norte | 24,651 | ||||||||||
SAB de CV Class B(Æ) | 547,235 | 3,037 | |||||||||
Grupo Aeroportuario del Pacifico SAB de | Peru - 0.1% | ||||||||||
CV Class B | 13,265 | 136 | Cia de Minas Buenaventura SAA - ADR | 95,800 | 1,151 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 205
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
InRetail Peru Corp.(Æ)(Þ) | 59,253 | 1,090 | AVI, Ltd. | 440,013 | 3,219 | ||||
2,241 | Barloworld, Ltd. - ADR | 217,781 | 1,961 | ||||||
Bid Corp., Ltd. | 12,384 | 262 | |||||||
Philippines - 0.3% | Bidvest Group, Ltd. (The) | 244,264 | 2,914 | ||||||
Ayala Land, Inc. | 2,393,589 | 1,691 | Discovery Holdings, Ltd. | 278,052 | 2,783 | ||||
Manila Electric Co. | 29,180 | 164 | Exxaro Resources, Ltd. | 273,899 | 2,332 | ||||
Metro Pacific Investments Corp. | 23,473,495 | 3,091 | FirstRand, Ltd. | 991,614 | 3,706 | ||||
Universal Robina Corp. | 369,858 | 1,273 | Growthpoint Properties, Ltd.(ö) | 94,100 | 180 | ||||
6,219 | Investec, Ltd. | 41,009 | 308 | ||||||
Kumba Iron Ore, Ltd.(Æ) | 46,556 | 605 | |||||||
Poland - 0.6% | Liberty Holdings, Ltd. | 16,366 | 132 | ||||||
Bank Pekao SA | 108,154 | 3,916 | Massmart Holdings, Ltd. | 103,414 | 1,001 | ||||
KGHM Polska Miedz SA | 167,279 | 5,317 | Naspers, Ltd. Class N | 55,486 | 10,531 | ||||
Powszechny Zaklad Ubezpieczen SA | 247,686 | 2,731 | Nedbank Group, Ltd. | 130,419 | 2,199 | ||||
Synthos SA | 710,792 | 988 | Pick n Pay Stores, Ltd. | 136,823 | 650 | ||||
Tauron Polska Energia SA(Æ) | 1,104,656 | 937 | Remgro, Ltd. | 29,697 | 493 | ||||
13,889 | Resilient Property Income(Æ) | 27,944 | 244 | ||||||
Reunert, Ltd. | 510,683 | 2,712 | |||||||
Qatar - 0.1% | Sanlam, Ltd. | 499,063 | 2,648 | ||||||
Al Meera Consumer Goods Co. QSC | 46,000 | 1,981 | Sappi, Ltd. - ADR | 348,704 | 2,591 | ||||
Industries Qatar QSC | 32,643 | 934 | Sasol, Ltd. - ADR | 222,840 | 6,811 | ||||
2,915 | Standard Bank Group, Ltd. | 691,195 | 7,690 | ||||||
Tiger Brands, Ltd. | 8,487 | 256 | |||||||
Romania - 0.3% | Vodacom Group, Ltd. - ADR | 60,073 | 678 | ||||||
Banca Transilvania SA | 3,616,585 | 2,395 | 65,969 | ||||||
Fondul Proprietatea SA | 17,043,170 | 3,681 | |||||||
6,076 | South Korea - 13.8% | ||||||||
Amorepacific Corp. | 21,820 | 5,596 | |||||||
Russia - 4.1% | BNK Financial Group, Inc. | 315,389 | 2,647 | ||||||
Alrosa OJSC | 817,600 | 1,407 | Coway Co., Ltd. | 31,681 | 2,800 | ||||
Federal Grid PJSC | 688,960,000 | 2,378 | DMS Co., Ltd. | 62,534 | 626 | ||||
Gazprom PAO | 897,516 | 2,156 | Dongbu HiTek Co., Ltd.(Æ) | 64,686 | 1,199 | ||||
Gazprom PJSC - ADR | 2,626,303 | 12,463 | Dongbu Insurance Co., Ltd. | 74,860 | 4,474 | ||||
Inter RAO UES PJSC | 33,763,000 | 2,402 | E-MART, Inc. | 22,824 | 4,624 | ||||
Lukoil PJSC - ADR | 506,432 | 25,107 | GS Holdings Corp. | 10,525 | 548 | ||||
Lukoil PJSC | 36,773 | 1,820 | Hana Financial Group, Inc. | 704,085 | 24,199 | ||||
MMC Norilsk Nickel PJSC - ADR | 190,078 | 2,918 | Hankook Tire Co., Ltd. | 262,317 | 13,579 | ||||
MMC Norilsk Nickel PJSC | 902 | 139 | Hanon Systems | 339,228 | 2,519 | ||||
Mobile TeleSystems PJSC - ADR | 208,600 | 2,152 | Hanssem Co., Ltd. | 7,700 | 1,489 | ||||
Novatek OAO | 95,105 | 1,162 | Hanwha Corp. | 6,195 | 217 | ||||
Novolipetsk Steel PJSC - GDR | 146,275 | 2,769 | Hanwha Life Insurance Co., Ltd. | 90,273 | 488 | ||||
PhosAgro PJSC - GDR | 257,542 | 3,784 | Hyundai Department Store Co., Ltd. | 2,062 | 196 | ||||
Rosneft Oil Co. - GDR | 584,545 | 3,234 | Hyundai Mobis Co., Ltd. | 7,018 | 1,370 | ||||
Rosneft Oil Co. PJSC - GDR | 509,444 | 2,820 | Hyundai Motor Co. | 18,542 | 2,344 | ||||
Sberbank of Russia PJSC | 1,670,700 | 4,866 | Industrial Bank of Korea | 115,533 | 1,267 | ||||
Sberbank of Russia PJSC Class T | 716,506 | 2,080 | JB Financial Group Co., Ltd. | 77,550 | 412 | ||||
Sberbank of Russia PJSC - ADR | 1,005,038 | 11,947 | Kangwon Land, Inc. | 9,538 | 303 | ||||
Surgutneftegas OAO | 1,031,100 | 505 | KB Financial Group, Inc. | 459,445 | 20,145 | ||||
Surgutneftegas OJSC - ADR | 131,666 | 645 | KB Financial Group, Inc. - ADR | 73,300 | 3,186 | ||||
Tatneft PJSC - ADR(Ñ) | 159,397 | 6,239 | KEPCO Plant Service & Engineering | ||||||
TMK OAO - GDR | 86,662 | 452 | Co., Ltd. | 9,096 | 459 | ||||
Uralkali PJSC(Æ) | 132,990 | 350 | Kia Motors Corp. | 55,205 | 1,689 | ||||
X5 Retail Group NV - GDR(Æ) | 35,091 | 1,237 | Korea Circuit Co., Ltd. | 15,058 | 175 | ||||
95,032 | Korea Electric Power Corp. - ADR(Ñ) | 67,548 | 1,338 | ||||||
Korea Electric Power Corp. | 53,137 | 2,116 | |||||||
South Africa - 2.8% | Korea Gas Corp.(Æ) | 22,993 | 942 | ||||||
African Phoenix Investments, Ltd.(Æ) | 887,049 | 39 | Korea Investment Holdings Co., Ltd. | 5,453 | 245 | ||||
AngloGold Ashanti, Ltd. - ADR | 454,406 | 5,194 | Korea Kolmar Co., Ltd. | 39,052 | 2,760 | ||||
Aspen Pharmacare Holdings, Ltd. | 184,658 | 3,830 |
See accompanying notes which are an integral part of the financial statements.
206 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Korea Petrochemical Industries Co., Ltd. | 6,121 | 1,270 | China Development Financial Holding | |||||||
Korea Zinc Co., Ltd. | 3,551 | 1,326 | Corp. | 4,435,000 | 1,223 | |||||
KT Corp. - ADR(Ñ) | 190,645 | 3,163 | China Life Insurance Co., Ltd. | 1,164,040 | 1,084 | |||||
KT Corp. | 47,377 | 1,341 | China Steel Corp. Class H | 2,013,000 | 1,614 | |||||
KT&G Corp. | 9,069 | 809 | Chipbond Technology Corp. | 1,355,000 | 2,019 | |||||
Kumho Petrochemical Co., Ltd. | 59,190 | 3,955 | Chunghwa Telecom Co., Ltd. | 391,000 | 1,324 | |||||
LG Chem, Ltd. | 15,033 | 3,615 | Compal Electronics, Inc. | 582,000 | 389 | |||||
LG Corp. Class H | 16,794 | 997 | Compeq Manufacturing Co., Ltd. | 221,000 | 163 | |||||
LG Electronics, Inc. Class H | 59,776 | 3,627 | CTBC Financial Holding Co., Ltd. | 1,939,200 | 1,211 | |||||
LG Household & Health Care, Ltd. | 4,500 | 3,425 | Delta Electronics, Inc. | 986,413 | 5,559 | |||||
LG Innotek Co., Ltd. | 27,610 | 3,192 | E Ink Holdings, Inc. | 538,000 | 549 | |||||
LG International Corp. | 23,971 | 684 | E.Sun Financial Holding Co., Ltd. | 1,708,600 | 1,033 | |||||
LG Uplus Corp. | 311,709 | 3,960 | Eclat Textile Co., Ltd. | 139,202 | 1,524 | |||||
Lotte Chemical Corp. | 5,360 | 1,612 | Far Eastern New Century Corp. | 1,071,000 | 901 | |||||
Lotte Chilsung Beverage Co., Ltd. | 2,287 | 3,369 | Far EasTone Telecommunications Co., | |||||||
Lotte Confectionery Co., Ltd. | 19,232 | 3,475 | Ltd. | 400,000 | 985 | |||||
Lotte Shopping Co., Ltd. | 3,466 | 798 | First Financial Holding Co., Ltd. | 1,952,070 | 1,190 | |||||
NAVER Corp. | 5,800 | 4,074 | Formosa Chemicals & Fibre Corp. | 620,000 | 1,908 | |||||
Netmarble Games Corp.(Æ)(Þ) | 2,762 | 381 | Formosa Plastics Corp. | 408,000 | 1,228 | |||||
POSCO | 61,644 | 14,558 | Foxconn Technology Co., Ltd. | 462,280 | 1,408 | |||||
Samsung Electronics Co., Ltd. | 50,973 | 99,644 | Fubon Financial Holding Co., Ltd. | 5,741,000 | 8,991 | |||||
Samsung Electronics Co., Ltd. - GDR(Þ) | 7,812 | 7,664 | Giant Manufacturing Co., Ltd. | 299,151 | 1,810 | |||||
Samsung Electronics Co., Ltd. - GDR | 8,698 | 7,924 | Grand Pacific Petrochemical | 1,713,000 | 1,120 | |||||
Samsung Fire & Marine Insurance Co., | HannStar Board Corp. | 687,000 | 392 | |||||||
Ltd. | 2,822 | 665 | Hon Hai Precision Industry Co., Ltd. | 7,645,617 | 25,025 | |||||
Samsung Life Insurance Co., Ltd. | 65,684 | 6,311 | Hotai Motor Co., Ltd. | 15,000 | 173 | |||||
Shinhan Financial Group Co., Ltd. | 40,336 | 1,684 | Hua Nan Financial Holdings Co., Ltd. | 1,623,764 | 909 | |||||
Shinsegae Co., Ltd. | 10,018 | 1,799 | Innolux Corp. | 6,485,000 | 3,026 | |||||
SK Holdings Co., Ltd. | 1,400 | 298 | Inventec Corp. | 1,537,000 | 1,143 | |||||
SK Hynix, Inc. | 297,825 | 14,138 | Largan Precision Co., Ltd. | 122,578 | 20,352 | |||||
SK Innovation Co., Ltd. | 15,959 | 2,394 | Lite-On Technology Corp. | 2,160,996 | 3,770 | |||||
SK Telecom Co., Ltd. - ADR(Ñ) | 413,600 | 9,757 | MediaTek, Inc. | 838,000 | 6,023 | |||||
S-Oil Corp. | 8,433 | 738 | Mega Financial Holding Co., Ltd. | 2,304,000 | 1,850 | |||||
Woori Bank | 428,295 | 5,629 | Nan Ya Plastics Corp. | 213,000 | 513 | |||||
322,228 | Nanya Technology Corp. | 868,000 | 1,383 | |||||||
Novatek Microelectronics Corp. | 171,000 | 657 | ||||||||
Spain - 0.0% | Pegatron Corp. | 2,108,000 | 6,204 | |||||||
Cemex Latam Holdings SA(Æ) | 290,746 | 1,061 | Pou Chen Corp. Class B | 504,000 | 705 | |||||
Powertech Technology, Inc. | 730,000 | 2,289 | ||||||||
Sri Lanka - 0.1% | President Chain Store Corp. | 94,000 | 818 | |||||||
Melstacorp PLC | 4,787,216 | 2,179 | Quanta Computer, Inc. | 1,740,000 | 3,605 | |||||
Realtek Semiconductor Corp. | 1,395,000 | 4,710 | ||||||||
Switzerland - 0.1% | Shin Kong Financial Holding Co., Ltd. | 12,249,000 | 3,264 | |||||||
Coca-Cola HBC AG - ADR(Æ) | 112,850 | 3,131 | SinoPac Financial Holdings Co., Ltd. | 3,368,150 | 1,029 | |||||
Taishin Financial Holding Co., Ltd. | 757,087 | 312 | ||||||||
Taiwan - 10.4% | Taiwan Cement Corp. | 487,000 | 567 | |||||||
Advanced Semiconductor Engineering, | Taiwan Cooperative Financial Holding | |||||||||
Inc. | 3,754,331 | 4,722 | Co., Ltd. | 2,181,990 | 1,110 | |||||
Advantech Co., Ltd. | 753,806 | 6,093 | Taiwan Mobile Co., Ltd. | 257,000 | 949 | |||||
Airtac International Group | 146,850 | 1,677 | Taiwan Semiconductor Manufacturing | |||||||
Asia Cement Corp. | 1,163,000 | 1,148 | Co., Ltd. | 6,404,382 | 41,113 | |||||
Asustek Computer, Inc. | 269,000 | 2,642 | Taiwan Semiconductor Manufacturing | |||||||
AU Optronics Corp. | 6,450,000 | 2,679 | Co., Ltd. - ADR | 820,833 | 27,145 | |||||
Catcher Technology Co., Ltd. | 365,035 | 3,751 | Taiwan Union Technology Corp. | 78,000 | 140 | |||||
Cathay Financial Holding Co., Ltd. | 2,855,000 | 4,573 | TPK Holding Co., Ltd.(Æ) | 121,000 | 433 | |||||
Chang Hwa Commercial Bank, Ltd. | 2,129,280 | 1,233 | Tripod Technology Corp. | 2,362,969 | 6,675 | |||||
Cheng Shin Rubber Industry Co., Ltd. | 715,000 | 1,477 | Uni-President Enterprises Corp. | 435,000 | 802 | |||||
United Microelectronics Corp. | 1,871,000 | 747 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 207
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Winbond Electronics Corp. | 1,610,000 | 911 | Turkcell Iletisim Hizmetleri AS - | ||||||
Wistron Corp. | 2,683,247 | 2,538 | ADR(Æ)(Ñ) | 120,891 | 1,058 | ||||
YFC-Boneagle Electric Co., Ltd. | 458,000 | 747 | Turkiye Garanti Bankasi AS | 1,645,330 | 4,441 | ||||
Yieh Phui Enterprise | 257,000 | 105 | Turkiye Halk Bankasi AS | 1,941,534 | 6,424 | ||||
Yuanta Financial Holding Co., Ltd. | 5,386,000 | 2,303 | Turkiye Is Bankasi Class C | 3,547,494 | 6,999 | ||||
241,665 | Turkiye Vakiflar Bankasi TAO Class D | 1,436,526 | 2,454 | ||||||
Yapi ve Kredi Bankasi AS(Æ) | 1,398,025 | 1,696 | |||||||
Thailand - 2.6% | 48,413 | ||||||||
Airports of Thailand PCL | 472,000 | 549 | |||||||
Bangkok Bank PCL | 635,200 | 3,416 | Ukraine - 0.4% | ||||||
Bangkok Dusit Medical Services PCL | Kernel Holding SA | 209,396 | 3,727 | ||||||
Class F | 728,900 | 427 | MHP SA - GDR | 490,745 | 5,054 | ||||
BEC World PCL | 3,674,702 | 1,986 | 8,781 | ||||||
Central Pattana PCL | 1,693,583 | 2,937 | |||||||
Charoen Pokphand Foods PCL | 2,986,400 | 2,306 | United Arab Emirates - 0.5% | ||||||
CP ALL PCL | 309,100 | 544 | Air Arabia PJSC | 2,388,160 | 676 | ||||
Esso Thailand PCL(Æ) | 4,559,000 | 1,541 | Aldar Properties PJSC | 6,675,125 | 3,887 | ||||
Kasikornbank PCL | 1,124,903 | 6,020 | DAMAC Properties Dubai Co. PJSC | 1,833,974 | 1,278 | ||||
Khon Kaen Sugar Industry PCL | 1,013,700 | 158 | DP World, Ltd. | 101,300 | 2,069 | ||||
Kiatnakin Bank PCL | 127,900 | 252 | Dubai Investments PJSC | 1,560,900 | 900 | ||||
Krung Thai Bank PCL | 2,921,800 | 1,670 | Emaar Properties PJSC | 1,533,700 | 2,995 | ||||
Pruksa Holding PCL | 3,823,170 | 2,486 | 11,805 | ||||||
PTT Exploration & Production PCL | 1,366,362 | 3,834 | |||||||
PTT Global Chemical PCL | 2,614,800 | 5,673 | United Kingdom - 0.6% | ||||||
PTT PCL | 755,300 | 8,498 | BGEO Group PLC | 206,385 | 9,623 | ||||
Siam Cement PCL (The) | 14,100 | 218 | Nostrum Oil & Gas PLC(Æ) | 254,619 | 1,478 | ||||
Siam Commercial Bank PCL (The) | 1,068,700 | 4,808 | TBC Bank Group PLC(Æ) | 102,230 | 2,151 | ||||
Star Petroleum Refining PCL | 1,587,700 | 606 | 13,252 | ||||||
Supalai PCL | 672,000 | 479 | |||||||
Thai Beverage PCL | 943,600 | 624 | United States - 0.2% | ||||||
Thai Oil PCL | 308,800 | 696 | Gran Tierra Energy, Inc.(Æ) | 409,540 | 1,032 | ||||
Thai Union Group PCL Class F | 5,202,554 | 3,204 | MercadoLibre, Inc. | 11,700 | 2,679 | ||||
Thanachart Capital PCL | 1,248,200 | 1,703 | Yum China Holdings, Inc.(Æ) | 39,400 | 1,344 | ||||
Tisco Financial Group PCL | 1,868,817 | 4,117 | 5,055 | ||||||
TMB Bank PCL | 10,515,000 | 694 | |||||||
59,446 | Vietnam - 0.7% | ||||||||
Hoa Phat Group JSC | 2,307,988 | 2,983 | |||||||
Togo - 0.0% | Military Commercial Joint Stock Bank | 2,101,459 | 1,460 | ||||||
Ecobank Transnational, Inc. | 47,253,603 | 972 | Mobile World Investment Corp. | 778,580 | 5,716 | ||||
PetroVietnam Drilling & Well Services | |||||||||
Turkey - 2.1% | JSC - ADR(Æ) | 3 | — | ||||||
Akbank TAS | 1,786,770 | 4,780 | VinaCapital Vietnam Opportunity Fund, | ||||||
Anadolu Efes Biracilik Ve Malt Sanayii | Ltd. | 1,434,555 | 5,217 | ||||||
AS | 245,153 | 1,382 | 15,376 | ||||||
Arcelik AS | 196,479 | 1,310 | |||||||
Emlak Konut Gayrimenkul Yatirim | Virgin Islands, British - 0.2% | ||||||||
Ortakligi AS(ö) | 3,201,758 | 2,658 | Arcos Dorados Holdings, Inc. Class | ||||||
Enka Insaat ve Sanayi AS | 1,947,755 | 2,993 | A(Æ) | 526,693 | 4,319 | ||||
Ford Otomotiv Sanayi AS | 53,349 | 593 | Mail.Ru Group, Ltd. - GDR(Æ) | 7,265 | 191 | ||||
GSD Holding AS | 468,943 | 79 | 4,510 | ||||||
Haci Omer Sabanci Holding AS | 1,423,601 | 4,239 | |||||||
KOC Holding AS | 113,030 | 531 | Total Common Stocks | ||||||
TAV Havalimanlari Holding AS | 610,680 | 2,544 | (cost $1,815,585) | 2,174,598 | |||||
Tekfen Holding AS | 73,151 | 189 | |||||||
Torunlar Gayrimenkul Yatirim Ortakligi | Preferred Stocks - 2.0% | ||||||||
AS(ö) | 120,316 | 176 | Brazil - 1.4% | ||||||
Trakya Cam Sanayii AS | 209,541 | 203 | Banco Bradesco SA(Æ) | 149,687 | 1,576 | ||||
Tupras Turkiye Petrol Rafinerileri AS | 145,457 | 3,664 |
See accompanying notes which are an integral part of the financial statements.
208 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||||
Principal | Fair | Principal | Fair | |||||||||||
Amount ($) | Value | Amount ($) | Value | |||||||||||
or Shares | $ | or Shares | $ | |||||||||||
Banco do Estado do Rio Grande do Sul | 2017 Rights | 4,530 | — | |||||||||||
SA(Æ) | 280,811 | 1,257 | ||||||||||||
Braskem SA | 179,800 | 1,934 | Netherlands - 0.0% | |||||||||||
Centrais Eletricas Brasileiras SA(Æ) | 123,600 | 892 | Bharat Forge, Ltd.(Æ)(Þ) | |||||||||||
Cia Energetica de Minas Gerais | 400,267 | 1,120 | 2019 Warrants | 13,707 | 244 | |||||||||
Gerdau SA | 1,406,400 | 4,342 | Titan Co., Ltd.(Æ)(Þ) | |||||||||||
Investimentos Itau SA | 631,406 | 1,967 | 2019 Warrants | 34,462 | 252 | |||||||||
Itau Unibanco Holding SA | 1,089,827 | 13,479 | 496 | |||||||||||
Lojas Americanas SA(Æ) | 359,797 | 1,909 | ||||||||||||
Metalurgica Gerdau SA(Æ) | 1,024,300 | 1,484 | United States - 0.0% | |||||||||||
Petroleo Brasileiro SA(Æ) | 267,100 | 1,176 | Guinness(Æ) | |||||||||||
Vale SA(Æ) | 409,020 | 3,384 | 2017 Rights | 1,582,846 | 8 | |||||||||
34,520 | ||||||||||||||
Total Warrants & Rights | ||||||||||||||
Colombia - 0.1% | (cost $2,251) | 2,322 | ||||||||||||
Banco Davivienda SA | 6,409 | 68 | ||||||||||||
Bancolombia SA | 114,220 | 1,115 | ||||||||||||
1,183 | Short | -Term Investments - 3.1% | ||||||||||||
United States - 3.1% | ||||||||||||||
Russia - 0.1% | U.S. Cash Management Fund | 66,148,882 | (8) | 66,163 | ||||||||||
Surgutneftegas OAO | 2,234,038 | 1,197 | United States Treasury Bills | |||||||||||
0.655% due 05/25/17 (§)(~) | 1,500 | 1,499 | ||||||||||||
South Korea - 0.4% | 0.744% due 07/13/17 (§)(~) | 1,300 | 1,298 | |||||||||||
Samsung Electronics Co., Ltd. | 5,730 | 8,800 | ||||||||||||
Samsung Fire & Marine Insurance Co., | 0.823% due 08/03/17 (§)(~) | 3,700 | 3,692 | |||||||||||
Ltd. | 502 | 79 | 72,652 | |||||||||||
8,879 | Total Short-Term Investments | |||||||||||||
(cost $72,652) | 72,652 | |||||||||||||
Total Preferred Stocks | ||||||||||||||
(cost $35,892) | 45,779 | Other Securities - 1.3% | ||||||||||||
U.S. Cash Collateral Fund(×) | 31,216,302 | (8) | 31,216 | |||||||||||
Certificates of Participation - 0.5% | Total Other Securities | |||||||||||||
Netherlands - 0.4% | (cost $31,216) | 31,216 | ||||||||||||
JPMorgan Structured Products BV | ||||||||||||||
Zero coupon due 08/14/17 (Å) | 48 | 7 | Total Investments 100.2% | |||||||||||
Zero coupon due 08/14/17 | 292 | 2,132 | ||||||||||||
Series 0001 | (identified cost $1,962,445) | 2,337,313 | ||||||||||||
Zero coupon due 05/16/17 | 168 | 2,991 | ||||||||||||
Zero coupon due 07/02/18 | 9 | 911 | Other Assets and Liabilities, Net | |||||||||||
Series 0002 | - | (0.2%) | (3,594 | ) | ||||||||||
Zero coupon due 07/02/18 | 166 | 2,722 | Net Assets - 100.0% | 2,333,719 | ||||||||||
8,763 | ||||||||||||||
United Kingdom - 0.1% | ||||||||||||||
HSBC Bank PLC | ||||||||||||||
Series 0008 | ||||||||||||||
Zero coupon due 09/09/19 | 50 | 1,983 | ||||||||||||
Total Certificates of Participation | ||||||||||||||
(cost $4,849) | 10,746 | |||||||||||||
Warrants & Rights - 0.1% | ||||||||||||||
Australia - 0.1% | ||||||||||||||
FPT Corp.(Æ) | ||||||||||||||
2018 Warrants | 890,150 | 1,818 | ||||||||||||
Hong Kong - 0.0% | ||||||||||||||
Bank of Communications Co., Ltd.(Æ) |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 209
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.2% | ||||||||||||
China Forestry Holdings Co., Ltd. | 07/26/10 | HKD | 871,100 | 0.43 | 372 | — | ||||||
China Metal Recycling Holdings, Ltd. | 11/16/12 | HKD | 335,400 | 1.01 | 339 | — | ||||||
JPMorgan Structured Products BV | 04/02/15 | CNY | 48,430 | 13.42 | 6 | 7 | ||||||
Kaisa Group Holdings, Ltd. | 09/04/14 | HKD | 2,803,000 | 0.38 | 1,066 | 840 | ||||||
L&T Technology Services, Ltd. | 11/01/16 | INR | 48,054 | 11.79 | 567 | 574 | ||||||
Real Gold Mining, Ltd. | 04/26/10 | HKD | 463,232 | 1.60 | 741 | — | ||||||
Tianhe Chemicals Group, Ltd. | 06/13/14 | HKD | 25,778,000 | 0.23 | 5,886 | 2,320 | ||||||
3,741 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
BIST 30 Index Futures | 545 | TRY | 6,456 | 06/17 | (5 | ) | |
FTSE/JSE TOP 40 Index Futures | 821 | ZAR | 390,328 | 06/17 | 260 | ||
Hang Seng Index Futures | 170 | HKD | 208,769 | 05/17 | 218 | ||
H-Shares Index Futures | 405 | HKD | 207,380 | 05/17 | 53 | ||
KOSPI2 Index Futures | 376 | KRW | 27,062,599 | 06/17 | 513 | ||
Mexican Bolsa Index Futures | 112 | MXN | 55,207 | 06/17 | 61 | ||
MSCI Emerging Markets Mini Index Futures | 368 | USD | 18,014 | 06/17 | 549 | ||
MSCI Taiwan Index Futures | 945 | USD | 34,682 | 05/17 | 312 | ||
SGX NIFTY 50 Index Futures | 471 | USD | 8,793 | 05/17 | 43 | ||
Short Positions | |||||||
MSCI Emerging Markets Mini Index Futures | 1,675 | USD | 81,992 | 06/17 | (1,327 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 677 |
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of America | USD | 625 | BRL | 2,000 | 05/03/17 | 5 | ||
Bank of America | USD | 17 | HKD | 131 | 05/02/17 | — | ||
Bank of America | USD | 477 | HKD | 3,710 | 05/02/17 | — | ||
Bank of America | USD | 48 | HKD | 371 | 05/04/17 | — | ||
Bank of America | USD | 92 | HKD | 712 | 05/04/17 | — | ||
Bank of America | USD | 304 | HKD | 2,368 | 05/04/17 | — | ||
Bank of America | USD | 336 | HKD | 2,616 | 05/04/17 | — | ||
Bank of America | USD | 2,577 | HKD | 20,000 | 06/21/17 | (3 | ) | |
Bank of America | USD | 23,158 | HKD | 180,000 | 06/21/17 | 7 | ||
Bank of America | USD | 9,578 | INR | 649,500 | 06/21/17 | 472 | ||
Bank of America | USD | 280 | KRW | 320,000 | 06/21/17 | 1 | ||
Bank of America | USD | 41 | PLN | 158 | 05/02/17 | — | ||
Bank of America | BRL | 2,000 | USD | 639 | 05/03/17 | 9 | ||
Bank of America | HKD | 113 | USD | 15 | 05/02/17 | — | ||
Bank of America | HKD | 146 | USD | 19 | 05/04/17 | — | ||
Bank of America | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | ||
Bank of America | HKD | 10,000 | USD | 1,288 | 06/21/17 | 1 |
See accompanying notes which are an integral part of the financial statements.
210 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | |
Bank of America | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | |
Bank of America | INR | 80,000 | USD | 1,188 | 06/21/17 | (50 | ) |
Bank of America | INR | 100,000 | USD | 1,546 | 06/21/17 | (2 | ) |
Bank of America | KRW | 2,000,000 | USD | 1,772 | 06/21/17 | 14 | |
Bank of America | MXN | 10,000 | USD | 529 | 06/21/17 | 2 | |
Bank of America | TRY | 500 | USD | 138 | 06/21/17 | (1 | ) |
Bank of America | TRY | 750 | USD | 197 | 06/21/17 | (11 | ) |
Bank of America | ZAR | 5,000 | USD | 357 | 06/21/17 | (14 | ) |
Bank of America | ZAR | 5,000 | USD | 358 | 06/21/17 | (13 | ) |
Bank of Montreal | USD | 2,710 | HKD | 21,015 | 06/21/17 | (6 | ) |
Bank of Montreal | USD | 3,956 | HKD | 30,672 | 06/21/17 | (8 | ) |
Bank of Montreal | USD | 637 | MXN | 12,867 | 06/21/17 | 40 | |
Bank of Montreal | USD | 265 | TRY | 1,008 | 06/21/17 | 15 | |
Bank of Montreal | USD | 1,339 | ZAR | 17,814 | 06/21/17 | (17 | ) |
Bank of Montreal | USD | 6,405 | ZAR | 85,200 | 06/21/17 | (84 | ) |
Barclays | USD | 1,515 | INR | 102,888 | 06/15/17 | 79 | |
Barclays | USD | 15,495 | INR | 1,049,149 | 06/15/17 | 750 | |
Barclays | USD | 3,036 | MXN | 60,865 | 06/15/17 | 174 | |
Barclays | USD | 12,186 | ZAR | 163,085 | 06/15/17 | (72 | ) |
Barclays | HUF | 640,165 | USD | 2,187 | 06/15/17 | (43 | ) |
Barclays | PLN | 8,410 | USD | 2,118 | 06/16/17 | (49 | ) |
BNP Paribas | USD | 2,012 | CLP | 1,305,712 | 06/15/17 | (60 | ) |
BNP Paribas | USD | 3,956 | HKD | 30,672 | 06/21/17 | (8 | ) |
BNP Paribas | USD | 637 | MXN | 12,867 | 06/21/17 | 41 | |
BNP Paribas | USD | 265 | TRY | 1,008 | 06/21/17 | 15 | |
BNP Paribas | USD | 1,337 | ZAR | 17,814 | 06/21/17 | (15 | ) |
BNP Paribas | USD | 6,394 | ZAR | 85,200 | 06/21/17 | (73 | ) |
Brown Brothers Harriman | ZAR | 426,000 | USD | 32,527 | 06/21/17 | 917 | |
Citigroup | USD | 1,838 | HKD | 14,259 | 06/15/17 | (4 | ) |
Citigroup | USD | 2,574 | HKD | 20,000 | 06/21/17 | — | |
Citigroup | USD | 2,196 | HUF | 640,165 | 06/15/17 | 34 | |
Citigroup | USD | 2,561 | INR | 170,000 | 06/21/17 | 70 | |
Citigroup | USD | 1,914 | KRW | 2,200,000 | 06/21/17 | 21 | |
Citigroup | USD | 258 | MXN | 5,000 | 06/21/17 | 5 | |
Citigroup | USD | 138 | TRY | 500 | 06/21/17 | 1 | |
Citigroup | USD | 746 | ZAR | 10,000 | 06/21/17 | (4 | ) |
Citigroup | USD | 22,387 | ZAR | 300,000 | 06/21/17 | (126 | ) |
Citigroup | USD | 67,162 | ZAR | 900,000 | 06/21/17 | (378 | ) |
Citigroup | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | |
Citigroup | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | |
Citigroup | HKD | 10,000 | USD | 1,289 | 06/21/17 | 2 | |
Citigroup | MXN | 1,000 | USD | 53 | 06/21/17 | — | |
Citigroup | MXN | 5,000 | USD | 260 | 06/21/17 | (3 | ) |
Citigroup | PLN | 5,630 | USD | 1,414 | 06/16/17 | (37 | ) |
Citigroup | TRY | 600 | USD | 161 | 06/21/17 | (5 | ) |
Citigroup | ZAR | 3,000 | USD | 221 | 06/21/17 | (2 | ) |
Citigroup | ZAR | 10,000 | USD | 716 | 06/21/17 | (26 | ) |
Citigroup | ZAR | 10,000 | USD | 758 | 06/21/17 | 16 | |
Commonwealth Bank of Australia | USD | 2,710 | HKD | 21,015 | 06/21/17 | (6 | ) |
Commonwealth Bank of Australia | USD | 3,956 | HKD | 30,672 | 06/21/17 | (9 | ) |
Commonwealth Bank of Australia | USD | 637 | MXN | 12,867 | 06/21/17 | 41 | |
Commonwealth Bank of Australia | USD | 264 | TRY | 1,008 | 06/21/17 | 16 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 211
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Commonwealth Bank of Australia | USD | 1,337 | ZAR | 17,814 | 06/21/17 | (15 | ) |
Commonwealth Bank of Australia | USD | 6,395 | ZAR | 85,200 | 06/21/17 | (73 | ) |
Deutsche Bank | USD | 12,690 | BRL | 40,589 | 05/03/17 | 97 | |
Deutsche Bank | BRL | 40,589 | USD | 12,863 | 05/03/17 | 75 | |
Deutsche Bank | CLP | 1,305,712 | USD | 1,969 | 06/15/17 | 17 | |
Deutsche Bank | COP | 4,457,432 | USD | 1,515 | 06/15/17 | 10 | |
Goldman Sachs | USD | 1,266 | MXN | 25,135 | 06/15/17 | 59 | |
Goldman Sachs | USD | 2,153 | ZAR | 28,491 | 06/15/17 | (36 | ) |
Morgan Stanley | USD | 12,746 | BRL | 40,589 | 05/03/17 | 42 | |
Morgan Stanley | USD | 1,506 | COP | 4,457,432 | 06/15/17 | — | |
Morgan Stanley | USD | 1,134 | INR | 73,737 | 06/15/17 | 8 | |
Morgan Stanley | USD | 3,240 | ZAR | 43,292 | 06/15/17 | (25 | ) |
Morgan Stanley | ARS | 60,252 | USD | 3,782 | 06/15/17 | (52 | ) |
Morgan Stanley | BRL | 40,589 | USD | 12,690 | 05/03/17 | (98 | ) |
Morgan Stanley | BRL | 40,589 | USD | 12,644 | 06/02/17 | (48 | ) |
Morgan Stanley | KRW | 2,008,670 | USD | 1,766 | 06/15/17 | — | |
Northern Trust | USD | 3,108 | ZAR | 39,810 | 06/15/17 | (151 | ) |
Royal Bank of Canada | USD | 2,711 | HKD | 21,015 | 06/21/17 | (6 | ) |
Royal Bank of Canada | USD | 3,956 | HKD | 30,672 | 06/21/17 | (9 | ) |
Royal Bank of Canada | USD | 637 | MXN | 12,867 | 06/21/17 | 41 | |
Royal Bank of Canada | USD | 264 | TRY | 1,008 | 06/21/17 | 15 | |
Royal Bank of Canada | USD | 1,337 | ZAR | 17,814 | 06/21/17 | (15 | ) |
Royal Bank of Canada | USD | 6,395 | ZAR | 85,200 | 06/21/17 | (73 | ) |
Royal Bank of Canada | HKD | 10,000 | USD | 1,290 | 06/21/17 | 3 | |
Royal Bank of Canada | TRY | 600 | USD | 162 | 06/21/17 | (5 | ) |
Royal Bank of Canada | ZAR | 3,000 | USD | 231 | 06/21/17 | 8 | |
Royal Bank of Scotland | HKD | 19,722 | USD | 2,543 | 06/15/17 | 5 | |
Standard Chartered | USD | 2,711 | HKD | 21,015 | 06/21/17 | (6 | ) |
Standard Chartered | USD | 3,956 | HKD | 30,672 | 06/21/17 | (9 | ) |
Standard Chartered | USD | 7,166 | IDR | 97,028,467 | 06/15/17 | 85 | |
Standard Chartered | USD | 637 | MXN | 12,867 | 06/21/17 | 41 | |
Standard Chartered | USD | 264 | TRY | 1,008 | 06/21/17 | 15 | |
Standard Chartered | USD | 1,337 | ZAR | 17,814 | 06/21/17 | (15 | ) |
Standard Chartered | USD | 6,395 | ZAR | 85,200 | 06/21/17 | (72 | ) |
Standard Chartered | KRW | 7,094,048 | USD | 6,174 | 06/15/17 | (64 | ) |
State Street | USD | 36 | BRL | 114 | 05/02/17 | — | |
State Street | USD | 52 | BRL | 165 | 05/02/17 | — | |
State Street | USD | 86 | BRL | 274 | 05/02/17 | — | |
State Street | USD | 55 | BRL | 173 | 05/03/17 | — | |
State Street | USD | 89 | BRL | 285 | 05/03/17 | 1 | |
State Street | USD | 200 | BRL | 639 | 05/03/17 | 1 | |
State Street | USD | 563 | BRL | 1,800 | 05/03/17 | 4 | |
State Street | USD | 565 | BRL | 1,800 | 05/03/17 | 2 | |
State Street | USD | 625 | BRL | 2,000 | 05/03/17 | 5 | |
State Street | USD | 631 | BRL | 2,000 | 05/03/17 | (1 | ) |
State Street | USD | 938 | BRL | 3,000 | 05/03/17 | 7 | |
State Street | USD | 1,251 | BRL | 4,000 | 05/03/17 | 10 | |
State Street | USD | 5,765 | BRL | 18,440 | 05/03/17 | 44 | |
State Street | USD | 8,107 | BRL | 25,440 | 05/03/17 | (93 | ) |
State Street | USD | 10,318 | BRL | 33,000 | 05/03/17 | 79 | |
State Street | USD | 10,724 | BRL | 34,300 | 05/03/17 | 82 | |
State Street | USD | 10,931 | BRL | 34,300 | 05/03/17 | (125 | ) |
State Street | USD | 11,017 | BRL | 35,000 | 05/03/17 | 10 |
See accompanying notes which are an integral part of the financial statements.
212 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
State Street | USD | 623 | BRL | 2,000 | 06/02/17 | 3 | |
State Street | USD | 5,758 | BRL | 18,440 | 06/02/17 | 8 | |
State Street | USD | 10,710 | BRL | 34,300 | 06/02/17 | 16 | |
State Street | USD | 61 | HKD | 477 | 05/02/17 | — | |
State Street | USD | 15 | HKD | 114 | 05/04/17 | — | |
State Street | USD | 5,804 | HKD | 45,000 | 06/21/17 | (13 | ) |
State Street | USD | 120 | KRW | 135,539 | 05/02/17 | — | |
State Street | USD | 219 | KRW | 248,149 | 05/02/17 | (1 | ) |
State Street | USD | 11,327 | KRW | 12,800,000 | 06/21/17 | (72 | ) |
State Street | USD | 951 | MXN | 19,000 | 06/21/17 | 50 | |
State Street | USD | 154 | THB | 5,307 | 05/02/17 | — | |
State Street | USD | 520 | TRY | 2,000 | 06/21/17 | 35 | |
State Street | USD | 43 | ZAR | 565 | 05/02/17 | (1 | ) |
State Street | USD | 1,721 | ZAR | 23,000 | 06/21/17 | (14 | ) |
State Street | BRL | 105 | USD | 33 | 05/02/17 | — | |
State Street | BRL | 251 | USD | 79 | 05/02/17 | — | |
State Street | BRL | 512 | USD | 160 | 05/02/17 | (2 | ) |
State Street | BRL | 614 | USD | 193 | 05/02/17 | — | |
State Street | BRL | 783 | USD | 247 | 05/02/17 | — | |
State Street | BRL | 829 | USD | 261 | 05/02/17 | — | |
State Street | BRL | 84 | USD | 26 | 05/03/17 | — | |
State Street | BRL | 1,220 | USD | 382 | 05/03/17 | (3 | ) |
State Street | BRL | 1,800 | USD | 563 | 05/03/17 | (4 | ) |
State Street | BRL | 1,800 | USD | 568 | 05/03/17 | 1 | |
State Street | BRL | 2,000 | USD | 628 | 05/03/17 | (2 | ) |
State Street | BRL | 2,000 | USD | 625 | 05/03/17 | (5 | ) |
State Street | BRL | 3,000 | USD | 948 | 05/03/17 | 3 | |
State Street | BRL | 4,000 | USD | 1,277 | 05/03/17 | 17 | |
State Street | BRL | 18,440 | USD | 5,804 | 05/03/17 | (5 | ) |
State Street | BRL | 25,440 | USD | 7,954 | 05/03/17 | (61 | ) |
State Street | BRL | 33,000 | USD | 10,517 | 05/03/17 | 119 | |
State Street | BRL | 34,300 | USD | 10,724 | 05/03/17 | (83 | ) |
State Street | BRL | 34,300 | USD | 10,796 | 05/03/17 | (10 | ) |
State Street | BRL | 35,000 | USD | 10,943 | 05/03/17 | (85 | ) |
State Street | BRL | 1,800 | USD | 561 | 06/02/17 | (2 | ) |
State Street | BRL | 35,000 | USD | 10,929 | 06/02/17 | (16 | ) |
State Street | EGP | 255 | USD | 14 | 05/03/17 | — | |
State Street | HKD | 200 | USD | 26 | 05/02/17 | — | |
State Street | HKD | 17,280 | USD | 2,222 | 05/04/17 | — | |
State Street | HKD | 8,450 | USD | 1,090 | 06/15/17 | 3 | |
State Street | HKD | 10,000 | USD | 1,290 | 06/21/17 | 3 | |
State Street | INR | 56,540 | USD | 840 | 06/15/17 | (36 | ) |
State Street | INR | 100,000 | USD | 1,529 | 06/21/17 | (18 | ) |
State Street | KRW | 3,000,000 | USD | 2,685 | 06/21/17 | 47 | |
State Street | MXN | 562 | USD | 29 | 05/02/17 | — | |
State Street | MXN | 5,000 | USD | 264 | 06/21/17 | 1 | |
State Street | MXN | 10,000 | USD | 503 | 06/21/17 | (24 | ) |
State Street | QAR | 242 | USD | 67 | 05/01/17 | — | |
State Street | QAR | 593 | USD | 163 | 05/01/17 | — | |
State Street | QAR | 243 | USD | 67 | 05/02/17 | — | |
State Street | THB | 3,119 | USD | 90 | 05/02/17 | — | |
State Street | THB | 3,402 | USD | 98 | 05/02/17 | — | |
State Street | THB | 4,896 | USD | 142 | 05/02/17 | — |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 213
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | �� | ||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
State Street | TRY | 368 | USD | 103 | 05/02/17 | (1 | ) |
State Street | TRY | 754 | USD | 211 | 05/02/17 | (1 | ) |
State Street | TRY | 1,000 | USD | 261 | 06/21/17 | (17 | ) |
State Street | ZAR | 1,743 | USD | 130 | 05/02/17 | — | |
State Street | ZAR | 11,623 | USD | 834 | 06/15/17 | (29 | ) |
State Street | ZAR | 4,000 | USD | 302 | 06/21/17 | 5 | |
UBS | USD | 3,042 | INR | 200,149 | 06/15/17 | 57 | |
UBS | USD | 1,012 | KRW | 1,133,924 | 06/15/17 | (15 | ) |
UBS | HKD | 3,000 | USD | 387 | 06/21/17 | 1 | |
UBS | INR | 54,503 | USD | 823 | 06/15/17 | (21 | ) |
UBS | KRW | 1,678,385 | USD | 1,502 | 06/15/17 | 26 | |
UBS | KRW | 3,848,367 | USD | 3,359 | 06/15/17 | (25 | ) |
UBS | KRW | 6,608,831 | USD | 5,939 | 06/15/17 | 128 | |
UBS | KRW | 18,577,939 | USD | 16,310 | 06/15/17 | (26 | ) |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 1,335 |
Total Return Swap Contracts (*) | ||||||
Amounts in thousands | ||||||
Notional | Termination | Fair Value | ||||
Underlying Reference Entity | Counterparty | Amount | Date | $ | ||
Bovespa Future Index | Goldman Sachs | BRL | 33,747 | 06/14/17 | (98 | ) |
Bovespa Future Index | Goldman Sachs | BRL | 20,968 | 06/14/17 | 61 | |
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å) | (37 | ) |
(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were all based
on the total return of underlying security at termination.
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ | 39,683 | $ | — | $ | — | $ | — | $ | 39,683 | 1.7 | |||||
Bangladesh | — | 11,231 | — | — | 11,231 | 0.5 | ||||||||||
Bermuda | 5,463 | 626 | — | — | 6,089 | 0.3 | ||||||||||
Brazil | 163,397 | — | 172 | — | 163,569 | 7.0 | ||||||||||
Cambodia | — | 1,996 | — | — | 1,996 | 0.1 | ||||||||||
Cayman Islands | 32,784 | 71,356 | 1,209 | — | 105,349 | 4.5 | ||||||||||
Chile | 15,763 | — | — | — | 15,763 | 0.7 | ||||||||||
China | 95,892 | 245,138 | 2,487 | — | 343,517 | 14.7 | ||||||||||
Colombia | 4,964 | — | — | — | 4,964 | 0.2 | ||||||||||
Cyprus | — | 315 | — | — | 315 | —* | ||||||||||
Czech Republic | — | 3,202 | — | — | 3,202 | 0.1 | ||||||||||
Egypt | 2,732 | 8,875 | — | — | 11,607 | 0.5 | ||||||||||
Greece | — | 5,445 | — | — | 5,445 | 0.2 | ||||||||||
See accompanying notes which are an integral part of the financial statements. |
214 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Hong Kong | 10,951 | 86,751 | 823 | — | 98,525 | 4.2 | ||||||||||||
Hungary | — | 9,722 | — | — | 9,722 | 0.4 | ||||||||||||
India | 28,749 | 182,208 | — | — | 210,957 | 9.0 | ||||||||||||
Indonesia | 1,243 | 34,188 | — | — | 35,431 | 1.5 | ||||||||||||
Jersey | — | 2,698 | — | — | 2,698 | 0.1 | ||||||||||||
Kazakhstan | 1,099 | — | — | — | 1,099 | —* | ||||||||||||
Kenya | — | 4,949 | — | — | 4,949 | 0.2 | ||||||||||||
Kuwait | — | 5,258 | — | — | 5,258 | 0.2 | ||||||||||||
Luxembourg | 3,416 | 2,697 | — | — | 6,113 | 0.3 | ||||||||||||
Macao | — | 6,651 | — | — | 6,651 | 0.3 | ||||||||||||
Malaysia | 229 | 13,221 | — | — | 13,450 | 0.6 | ||||||||||||
Mexico | 87,113 | — | — | — | 87,113 | 3.7 | ||||||||||||
Morocco | — | 1,996 | — | — | 1,996 | 0.1 | ||||||||||||
Netherlands | 12,142 | — | — | — | 12,142 | 0.5 | ||||||||||||
Nigeria | 445 | 10,453 | — | — | 10,898 | 0.5 | ||||||||||||
Pakistan | — | 24,651 | — | — | 24,651 | 1.1 | ||||||||||||
Peru | 2,241 | — | — | — | 2,241 | 0.1 | ||||||||||||
Philippines | — | 6,219 | — | — | 6,219 | 0.3 | ||||||||||||
Poland | — | 13,889 | — | — | 13,889 | 0.6 | ||||||||||||
Qatar | — | 2,915 | — | — | 2,915 | 0.1 | ||||||||||||
Romania | — | 6,076 | — | — | 6,076 | 0.3 | ||||||||||||
Russia | 37,396 | 57,636 | — | — | 95,032 | 4.1 | ||||||||||||
South Africa | 5,194 | 60,775 | — | — | 65,969 | 2.8 | ||||||||||||
South Korea | 25,489 | 296,739 | — | — | 322,228 | 13.8 | ||||||||||||
Spain | 1,061 | — | — | — | 1,061 | —* | ||||||||||||
Sri Lanka | — | 2,179 | — | — | 2,179 | 0.1 | ||||||||||||
Switzerland | — | 3,131 | — | — | 3,131 | 0.1 | ||||||||||||
Taiwan | 27,145 | 214,520 | — | — | 241,665 | 10.4 | ||||||||||||
Thailand | 721 | 58,725 | — | — | 59,446 | 2.6 | ||||||||||||
Togo | — | 972 | — | — | 972 | —* | ||||||||||||
Turkey | 1,058 | 47,355 | — | — | 48,413 | 2.1 | ||||||||||||
Ukraine | 3,877 | 4,904 | — | — | 8,781 | 0.4 | ||||||||||||
United Arab Emirates | — | 11,805 | — | — | 11,805 | 0.5 | ||||||||||||
United Kingdom | — | 13,252 | — | — | 13,252 | 0.6 | ||||||||||||
United States | 5,055 | — | — | — | 5,055 | 0.2 | ||||||||||||
Vietnam | — | 15,376 | — | — | 15,376 | 0.7 | ||||||||||||
Virgin Islands, British | 4,510 | — | — | — | 4,510 | 0.2 | ||||||||||||
Preferred Stocks | 35,703 | 10,076 | — | — | 45,779 | 2.0 | ||||||||||||
Certificates of Participation | 7 | 10,739 | — | — | 10,746 | 0.5 | ||||||||||||
Warrants & Rights | — | 2,322 | — | — | 2,322 | 0.1 | ||||||||||||
Short-Term Investments | — | 6,489 | — | 66,163 | 72,652 | 3.1 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 215
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Other Securities | — | — | — | 31,216 | 31,216 | 1.3 | ||||||||||||
Total Investments | 655,522 | 1,579,721 | 4,691 | 97,379 | 2,337,313 | 100.2 | ||||||||||||
Other Assets and Liabilities, Net | (0.2 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 2,009 | — | — | — | 2,009 | 0.1 | ||||||||||||
Foreign Currency Exchange Contracts | 247 | 3,800 | — | — | 4,047 | 0.2 | ||||||||||||
Total Return Swap Contracts | — | 61 | — | — | 61 | —* | ||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (1,332 | ) | — | — | — | (1,332 | ) | (0.1 | ) | |||||||||
Foreign Currency Exchange Contracts | (266 | ) | (2,446 | ) | — | — | (2,712 | ) | (0.1 | ) | ||||||||
Total Return Swap Contracts | — | (98 | ) | — | — | (98 | ) | (—) * | ||||||||||
Total Other Financial Instruments** | $ | 658 | $ | 1,317 | $ | — | $ | — | $ | 1,975 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
Amounts in thousands | |||
Fair Value | |||
Sector Exposure | $ | ||
Consumer Discretionary | 238,199 | ||
Consumer Staples | 158,169 | ||
Energy | 204,433 | ||
Financial Services | 618,433 | ||
Health Care | 43,119 | ||
Materials and Processing | 198,774 | ||
Producer Durables | 98,728 | ||
Technology | 495,295 | ||
Utilities | 165,227 | ||
Certificates of Participation | 10,746 | ||
Warrants and Rights | 2,322 | ||
Short-Term Investments | 72,652 | ||
Other Securities | 31,216 |
See accompanying notes which are an integral part of the financial statements.
216 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Total Investments | 2,337,313 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 217
Russell Investment Company
Emerging Markets Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | |||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 4,047 | |||
Variation margin on futures contracts* | 2,009 | — | |||||
Total return swap contracts, at fair value | 61 | — | |||||
Total | $ | 2,070 | $ | 4,047 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||
Variation margin on futures contracts* | $ | 1,332 | $ | — | |||
Unrealized depreciation on foreign currency exchange contracts | — | 2,712 | |||||
Total return swap contracts, at fair value | 98 | — | |||||
Total | $ | 1,430 | $ | 2,712 | |||
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | |||||||
Futures contracts | $ | 4,244 | $ | — | |||
Total return swap contracts | (54 | ) | — | ||||
Foreign currency-related transactions** | — | 2,168 | |||||
Total | $ | 4,190 | $ | 2,168 | |||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||||
Futures contracts | $ | 2,674 | $ | — | |||
Total return swap contracts | 412 | — | |||||
Foreign currency-related transactions*** | — | (1,342 | ) | ||||
Total | $ | 3,086 | $ | (1,342 | ) |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
218 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Assets | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||
Securities on Loan* | Investments, at fair value | $ | 30,583 | $ | — | $ | 30,583 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 4,047 | — | 4,047 | ||||||
Futures Contracts | Variation margin on futures contracts | 14,645 | — | 14,645 | ||||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 61 | — | 61 | ||||||
Total Financial and Derivative Assets | 49,336 | — | 49,336 | |||||||
Financial and Derivative Assets not subject to a netting agreement | (14,891) | — | (14,891 | ) | ||||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 34,445 | $ | — | $ | 34,445 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Assets | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||
Bank of America | $ | 518 | $ | 95 | $ | — | $ | 423 | |||
Bank of Montreal | 55 | 55 | — | — | |||||||
Barclays | 5,823 | 164 | 4,820 | 839 | |||||||
BNP Paribas | 55 | 55 | — | — | |||||||
Brown Brothers Harriman | 916 | — | — | 916 | |||||||
Citigroup | 3,676 | 154 | 3,522 | — | |||||||
Commonwealth Bank of Australia | 57 | 57 | — | — | |||||||
Credit Suisse | 2,246 | — | 2,246 | — | |||||||
Deutsche Bank | 1,649 | — | 1,450 | 199 | |||||||
Goldman Sachs | 4,088 | 98 | 3,968 | 22 | |||||||
HSBC | 5,821 | — | 5,821 | — | |||||||
JPMorgan Chase | 1,617 | — | 1,617 | — | |||||||
Merrill Lynch | 2,014 | — | 2,014 | — | |||||||
Morgan Stanley | 50 | 50 | — | — | |||||||
Royal Bank of Canada | 67 | 67 | — | — | |||||||
Royal Bank of Scotland | 5 | — | — | 5 | |||||||
Societe Generale | 5,126 | — | 5,126 | — | |||||||
Standard Chartered | 141 | 120 | — | 21 | |||||||
State Street | 309 | 309 | — | — | |||||||
UBS | 212 | 87 | — | 125 | |||||||
Total | $ | 34,445 | $ | 1,311 | $ | 30,584 | $ | 2,550 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 219
Russell Investment Company
Emerging Markets Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 1,650 | $ | — | $ | 1,650 | ||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 2,712 | — | 2,712 | |||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 98 | — | 98 | |||||
Total Financial and Derivative Liabilities | 4,460 | — | 4,460 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (1,915) | — | (1,915 | ) | |||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 2,545 | $ | — | $ | 2,545 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Liabilities | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | ||||||
Bank of America | $ | 95 | $ | 95 | $ | — | $ | — | ||
Bank of Montreal | 115 | 55 | — | 60 | ||||||
Barclays | 164 | 164 | — | — | ||||||
BNP Paribas | 155 | 55 | — | 100 | ||||||
Citigroup | 586 | 154 | — | 432 | ||||||
Commonwealth Bank of Australia | 103 | 57 | — | 46 | ||||||
Goldman Sachs | 134 | 98 | — | 36 | ||||||
Morgan Stanley | 223 | 50 | — | 173 | ||||||
Northern Trust | 151 | — | — | 151 | ||||||
Royal Bank of Canada | 108 | 67 | — | 41 | ||||||
Standard Chartered | 166 | 120 | — | 46 | ||||||
State Street | 458 | 309 | — | 149 | ||||||
UBS | 87 | 87 | — | — | ||||||
Total | $ | 2,545 | $ | 1,311 | $ | — | $ | 1,234 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
220 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 1,962,445 |
Investments, at fair value(*)(>) | 2,337,313 | |
Cash (restricted)(a) | 5,063 | |
Foreign currency holdings(^) | 11,726 | |
Unrealized appreciation on foreign currency exchange contracts | 4,047 | |
Receivables: | ||
Dividends and interest | 4,181 | |
Dividends from affiliated funds | 50 | |
Investments sold | 25,562 | |
Fund shares sold | 2,239 | |
Foreign capital gains taxes recoverable | 43 | |
Variation margin on futures contracts | 14,645 | |
Prepaid expenses | 23 | |
Total return swap contracts, at fair value(8) | 61 | |
Total assets | 2,404,953 | |
Liabilities | ||
Payables: | ||
Due to custodian | 4,565 | |
Investments purchased | 19,964 | |
Fund shares redeemed | 1,933 | |
Accrued fees to affiliates | 2,489 | |
Other accrued expenses | 1,406 | |
Variation margin on futures contracts | 1,650 | |
Deferred capital gains tax liability | 5,201 | |
Unrealized depreciation on foreign currency exchange contracts | 2,712 | |
Payable upon return of securities loaned | 31,216 | |
Total return swap contracts, at fair value(8) | 98 | |
Total liabilities | 71,234 | |
Net Assets | $ | 2,333,719 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 221
Russell Investment Company
Emerging Markets Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (13,252 | ) |
Accumulated net realized gain (loss) | (205,633 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 369,667 | ||
Futures contracts | 677 | ||
Total return swap contracts | (37 | ) | |
Foreign currency-related transactions | 1,375 | ||
Shares of beneficial interest | 1,282 | ||
Additional paid-in capital | 2,179,640 | ||
Net Assets | $ | 2,333,719 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 18.09 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 19.19 | |
Class A — Net assets | $ | 17,820,905 | |
Class A — Shares outstanding ($.01 par value) | 985,252 | ||
Net asset value per share: Class C(#) | $ | 16.82 | |
Class C — Net assets | $ | 16,895,514 | |
Class C — Shares outstanding ($.01 par value) | 1,004,659 | ||
Net asset value per share: Class E(#) | $ | 18.15 | |
Class E — Net assets | $ | 6,311,981 | |
Class E — Shares outstanding ($.01 par value) | 347,727 | ||
Net asset value per share: Class R6(#) | $ | 18.24 | |
Class R6 — Net assets | $ | 2,683,921 | |
Class R6 — Shares outstanding ($.01 par value) | 147,165 | ||
Net asset value per share: Class S(#) | $ | 18.21 | |
Class S — Net assets | $ | 1,819,203,324 | |
Class S — Shares outstanding ($.01 par value) | 99,879,383 | ||
Net asset value per share: Class T(#) | $ | 18.21 | |
Class T — Net assets | $ | 2,348,947 | |
Class T — Shares outstanding ($.01 par value) | 128,991 | ||
Net asset value per share: Class Y(#) | $ | 18.24 | |
Class Y — Net assets | $ | 468,453,944 | |
Class Y — Shares outstanding ($.01 par value) | 25,687,248 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 11,789 | |
(*) Securities on loan included in investments | $ | 30,583 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 97,379 | |
(8) Total return swap contracts – premiums paid (received) | $ | — | |
(a) Cash Collateral for Futures | $ | 5,063 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
222 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 21,463 | |
Dividends from affiliated funds | 323 | ||
Interest | 49 | ||
Securities lending income (net) | 505 | ||
Securities lending income from affiliated funds (net) | 146 | ||
Less foreign taxes withheld | (2,625 | ) | |
Total investment income | 19,861 | ||
Expenses | |||
Advisory fees | 12,777 | ||
Administrative fees | 539 | ||
Custodian fees | 1,076 | ||
Distribution fees - Class A | 21 | ||
Distribution fees - Class C | 62 | ||
Transfer agent fees - Class A | 17 | ||
Transfer agent fees - Class C | 17 | ||
Transfer agent fees - Class E | 18 | ||
Transfer agent fees - Class R6 | —** | ||
Transfer agent fees - Class S | 1,701 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 11 | ||
Professional fees | 101 | ||
Registration fees | 69 | ||
Shareholder servicing fees - Class C | 21 | ||
Shareholder servicing fees - Class E | 23 | ||
Trustees’ fees | 36 | ||
Printing fees | 115 | ||
Miscellaneous | 15 | ||
Expenses before reductions | 16,619 | ||
Expense reductions | (469 | ) | |
Net expenses | 16,150 | ||
Net investment income (loss) | 3,711 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 38,254 | ||
Futures contracts | 4,244 | ||
Total return swap contracts | (54 | ) | |
Foreign currency-related transactions | 1,090 | ||
Net realized gain (loss) | 43,534 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 179,626 | ||
Futures contracts | 2,674 | ||
Total return swap contracts | 412 | ||
Foreign currency-related transactions | (992 | ) | |
Net change in unrealized appreciation (depreciation) | 181,720 | ||
Net realized and unrealized gain (loss) | 225,254 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 228,965 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 223
Russell Investment Company
Emerging Markets Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 3,711 | $ | 21,904 | ||
Net realized gain (loss) | 43,534 | (147,352 | ) | |||
Net change in unrealized appreciation (depreciation) | 181,720 | 322,494 | ||||
Net increase (decrease) in net assets from operations | 228,965 | 197,046 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (134 | ) | — | |||
Class C | (18 | ) | — | |||
Class E | (267 | ) | — | |||
Class R6 | (3 | ) | — | |||
Class S | (17,187 | ) | (1,970 | ) | ||
Class Y | (5,978 | ) | (1,811 | ) | ||
Net decrease in net assets from distributions | (23,587 | ) | (3,781 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (150,649 | ) | (262,169 | ) | ||
Total Net Increase (Decrease) in Net Assets | 54,729 | (68,904 | ) | |||
Net Assets | ||||||
Beginning of period | 2,278,990 | 2,347,894 | ||||
End of period | $ | 2,333,719 | $ | 2,278,990 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (13,252 | ) | $ | 6,624 |
See accompanying notes which are an integral part of the financial statements.
224 Emerging Markets Fund
Russell Investment Company
Emerging Markets Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 45 | $ | 770 | 223 | $ | 3,275 | ||||||
Proceeds from reinvestment of distributions | 8 | 134 | — | — | ||||||||
Payments for shares redeemed | (119 | ) | (2,013 | ) | (296 | ) | (4,339 | ) | ||||
Net increase (decrease) | (66 | ) | (1,109 | ) | (73 | ) | (1,064 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 57 | 888 | 113 | 1,567 | ||||||||
Proceeds from reinvestment of distributions | 2 | 18 | — | — | ||||||||
Payments for shares redeemed | (207 | ) | (3,209 | ) | (409 | ) | (5,576 | ) | ||||
Net increase (decrease) | (148 | ) | (2,303 | ) | (296 | ) | (4,009 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 93 | 1,528 | 198 | 2,967 | ||||||||
Proceeds from reinvestment of distributions | 17 | 259 | — | — | ||||||||
Payments for shares redeemed | (1,862 | ) | (30,714 | ) | (599 | ) | (8,967 | ) | ||||
Net increase (decrease) | (1,752 | ) | (28,927 | ) | (401 | ) | (6,000 | ) | ||||
Class R6 | ||||||||||||
Proceeds from shares sold | 133 | 2,366 | 15 | 214 | ||||||||
Proceeds from reinvestment of distributions | —** | 3 | — | — | ||||||||
Payments for shares redeemed | (—)** | (2 | ) | (1 | ) | (10 | ) | |||||
Net increase (decrease) | 133 | 2,367 | 14 | 204 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 12,121 | 204,361 | 30,778 | 454,336 | ||||||||
Proceeds from reinvestment of distributions | 1,088 | 17,078 | 137 | 1,953 | ||||||||
Payments for shares redeemed | (16,021 | ) | (270,027 | ) | (44,075 | ) | (651,379 | ) | ||||
Net increase (decrease) | (2,812 | ) | (48,588 | ) | (13,160 | ) | (195,090 | ) | ||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 129 | 2,310 | — | — | ||||||||
Payments for shares redeemed | (—)** | (8 | ) | — | — | |||||||
Net increase (decrease) | 129 | 2,302 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 644 | 10,453 | 4,484 | 70,519 | ||||||||
Proceeds from reinvestment of distributions | 381 | 5,977 | 126 | 1,810 | ||||||||
Payments for shares redeemed | (5,275 | ) | (90,821 | ) | (8,277 | ) | (128,539 | ) | ||||
Net increase (decrease) | (4,250 | ) | (74,391 | ) | (3,667 | ) | (56,210 | ) | ||||
Total increase (decrease) | (8,766 | ) | $ | (150,649 | ) | (17,583 | ) | $ | (262,169 | ) |
** Less than 500 shares.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 225
Russell Investment Company
Emerging Markets Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||||
Class A | |||||||||||||||||||
April 30, 2017* | 16.51 | —(f) | 1.71 | 1.71 | (.13 | ) | — | ||||||||||||
October 31, 2016 | 15.09 | .11 | 1.31 | 1.42 | — | — | |||||||||||||
October 31, 2015 | 18.50 | .10 | (3.03 | ) | (2.93 | ) | (.22 | ) | (.26 | ) | |||||||||
October 31, 2014 | 18.96 | .13 | .04 | .17 | (.08 | ) | (.55 | ) | |||||||||||
October 31, 2013 | 17.79 | .13 | 1.18 | 1.31 | (.14 | ) | — | ||||||||||||
October 31, 2012 | 18.06 | .19 | .46 | .65 | (.22 | ) | (.70 | ) | |||||||||||
Class C | |||||||||||||||||||
April 30, 2017* | 15.30 | (.05 | ) | 1.59 | 1.54 | (.02 | ) | — | |||||||||||
October 31, 2016 | 14.09 | —(f) | 1.21 | 1.21 | — | — | |||||||||||||
October 31, 2015 | 17.29 | (.02 | ) | (2.83 | ) | (2.85 | ) | (.09 | ) | (.26 | ) | ||||||||
October 31, 2014 | 17.81 | (.01 | ) | .04 | .03 | — | (.55 | ) | |||||||||||
October 31, 2013 | 16.72 | (.01 | ) | 1.10 | 1.09 | — | — | ||||||||||||
October 31, 2012 | 16.99 | .05 | .45 | .50 | (.07 | ) | (.70 | ) | |||||||||||
Class E | |||||||||||||||||||
April 30, 2017* | 16.57 | (.04 | ) | 1.75 | 1.71 | (.13 | ) | — | |||||||||||
October 31, 2016 | 15.14 | .11 | 1.32 | 1.43 | — | — | |||||||||||||
October 31, 2015 | 18.56 | .11 | (3.05 | ) | (2.94 | ) | (.22 | ) | (.26 | ) | |||||||||
October 31, 2014 | 19.01 | .15 | .03 | .18 | (.08 | ) | (.55 | ) | |||||||||||
October 31, 2013 | 17.83 | .14 | 1.17 | 1.31 | (.13 | ) | — | ||||||||||||
October 31, 2012 | 18.10 | .18 | .47 | .65 | (.22 | ) | (.70 | ) | |||||||||||
Class R6 | |||||||||||||||||||
April 30, 2017* | 16.68 | .13 | 1.63 | 1.76 | (.20 | ) | — | ||||||||||||
October 31, 2016(8) | 13.39 | .16 | 3.13 | 3.29 | — | — | |||||||||||||
Class S | |||||||||||||||||||
April 30, 2017* | 16.65 | .03 | 1.70 | 1.73 | (.17 | ) | — | ||||||||||||
October 31, 2016 | 15.20 | .15 | 1.32 | 1.47 | (.02 | ) | — | ||||||||||||
October 31, 2015 | 18.63 | .15 | (3.05 | ) | (2.90 | ) | (.27 | ) | (.26 | ) | |||||||||
October 31, 2014 | 19.09 | .19 | .03 | .22 | (.13 | ) | (.55 | ) | |||||||||||
October 31, 2013 | 17.91 | .18 | 1.18 | 1.36 | (.18 | ) | — | ||||||||||||
October 31, 2012 | 18.19 | .23 | .46 | .69 | (.27 | ) | (.70 | ) | |||||||||||
Class T | |||||||||||||||||||
April 30, 2017(10) | 17.92 | .04 | .25 | .29 | — | — | |||||||||||||
Class Y | |||||||||||||||||||
April 30, 2017* | 16.68 | .04 | 1.72 | 1.76 | (.20 | ) | — | ||||||||||||
October 31, 2016 | 15.24 | .18 | 1.31 | 1.49 | (.05 | ) | — | ||||||||||||
October 31, 2015 | 18.68 | .18 | (3.06 | ) | (2.88 | ) | (.30 | ) | (.26 | ) | |||||||||
October 31, 2014 | 19.14 | .22 | .03 | .25 | (.16 | ) | (.55 | ) | |||||||||||
October 31, 2013 | 17.96 | .23 | 1.17 | 1.40 | (.22 | ) | — | ||||||||||||
October 31, 2012 | 18.23 | .26 | .47 | .73 | (.30 | ) | (.70 | ) | |||||||||||
See accompanying notes which are an integral part of the financial statements.
226 Emerging Markets Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | ||||||||||
(.13 | ) | 18.09 | 10.68 | 17,821 | 1.77 | 1.73 | (.08 | ) | 24 | |||||||||
— | 16.51 | 9.41 | 17,353 | 1.78 | 1.76 | .75 | 68 | |||||||||||
(.48 | ) | 15.09 | (16.11 | ) | 16,963 | 1.77 | 1.77 | .62 | 71 | |||||||||
(.63 | ) | 18.50 | 1.04 | 22,378 | 1.76 | 1.76 | .72 | 67 | ||||||||||
(.14 | ) | 18.96 | 7.36 | 21,736 | 1.75 | 1.75 | .74 | 93 | ||||||||||
(.92 | ) | 17.79 | 4.11 | 20,585 | 1.75 | 1.75 | 1.07 | 94 | ||||||||||
(.02 | ) | 16.82 | 10.26 | 16,896 | 2.52 | 2.48 | (.71 | ) | 24 | |||||||||
— | 15.30 | 8.59 | 17,641 | 2.53 | 2.51 | (.03 | ) | 68 | ||||||||||
(.35 | ) | 14.09 | (16.70 | ) | 20,415 | 2.52 | 2.52 | (.15 | ) | 71 | ||||||||
(.55 | ) | 17.29 | .26 | 28,601 | 2.51 | 2.51 | (.05 | ) | 67 | |||||||||
— | 17.81 | 6.55 | 28,808 | 2.50 | 2.50 | (.04 | ) | 93 | ||||||||||
(.77 | ) | 16.72 | 3.37 | 31,671 | 2.50 | 2.50 | .29 | 94 | ||||||||||
(.13 | ) | 18.15 | 10.69 | 6,312 | 1.77 | 1.73 | (.53 | ) | 24 | |||||||||
— | 16.57 | 9.45 | 34,786 | 1.78 | 1.76 | .75 | 68 | |||||||||||
(.48 | ) | 15.14 | (16.12 | ) | 37,874 | 1.77 | 1.77 | .64 | 71 | |||||||||
(.63 | ) | 18.56 | 1.09 | 49,652 | 1.76 | 1.76 | .80 | 67 | ||||||||||
(.13 | ) | 19.01 | 7.37 | 39,296 | 1.75 | 1.75 | .74 | 93 | ||||||||||
(.92 | ) | 17.83 | 4.11 | 38,808 | 1.75 | 1.75 | 1.05 | 94 | ||||||||||
(.20 | ) | 18.24 | 10.92 | 2,684 | 1.38 | 1.32 | 1.57 | 24 | ||||||||||
— | 16.68 | 24.57 | 240 | 1.39 | 1.34 | 1.48 | 68 | |||||||||||
(.17 | ) | 18.21 | 10.87 | 1,819,203 | 1.52 | 1.48 | .32 | 24 | ||||||||||
(.02 | ) | 16.65 | 9.68 | 1,709,494 | 1.53 | 1.51 | .99 | 68 | ||||||||||
(.53 | ) | 15.20 | (15.86 | ) | 1,760,569 | 1.52 | 1.52 | .87 | 71 | |||||||||
(.68 | ) | 18.63 | 1.31 | 2,231,799 | 1.51 | 1.51 | 1.02 | 67 | ||||||||||
(.18 | ) | 19.09 | 7.64 | 1,596,632 | 1.50 | 1.50 | .99 | 93 | ||||||||||
(.97 | ) | 17.91 | 4.33 | 1,341,106 | 1.50 | 1.50 | 1.33 | 94 | ||||||||||
— | 18.21 | 1.73 | 2,349 | 1.53 | 1.37 | 2.12 | 24 | |||||||||||
(.20 | ) | 18.24 | 10.94 | 468,454 | 1.32 | 1.29 | .47 | 24 | ||||||||||
(.05 | ) | 16.68 | 9.86 | 499,476 | 1.33 | 1.31 | 1.20 | 68 | ||||||||||
(.56 | ) | 15.24 | (15.70 | ) | 512,073 | 1.32 | 1.32 | 1.04 | 71 | |||||||||
(.71 | ) | 18.68 | 1.50 | 651,728 | 1.31 | 1.31 | 1.16 | 67 | ||||||||||
(.22 | ) | 19.14 | 7.80 | 482,265 | 1.30 | 1.30 | 1.26 | 93 | ||||||||||
(1.00 | ) | 17.96 | 4.58 | 387,848 | 1.32 | 1.32 | 1.50 | 94 |
See accompanying notes which are an integral part of the financial statements.
Emerging Markets Fund 227
Russell Investment Company
Emerging Markets Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 2,099,709 |
Administration fees | 91,365 | |
Distribution fees | 14,010 | |
Shareholder servicing fees | 4,739 | |
Transfer agent fees | 272,894 | |
Trustee fees | 6,665 | |
$ | 2,489,382 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Collateral Fund | $ | 48,769 | $ | 156,282 | $ | 173,835 | $ | — | $ | — | $ | 31,216 | $ | 146 | $ | — | ||
U.S. Cash Management Fund | 93,616 | 414,809 | 442,262 | — | — | 66,163 | 323 | — | ||||||||||
$ | 142,385 | $ | 571,091 | $ | 616,097 | $ | — | $ | — | $ | 97,379 | $ | 469 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 2,035,067,999 | |||
Unrealized Appreciation | $ | 386,188,899 | |||
Unrealized Depreciation | (83,944,075 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 302,244,824 |
See accompanying notes which are an integral part of the financial statements.
228 Emerging Markets Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,131.10 | $ | 1,018.74 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 6.45 | $ | 6.11 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.22% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,127.00 | $ | 1,015.03 | |
Expenses Paid During Period* | $ | 10.39 | $ | 9.84 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.97% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,131.40 | $ | 1,018.84 | |
of other funds. | Expenses Paid During Period* | $ | 6.34 | $ | 6.01 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.20% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Tax-Managed U.S. Large Cap Fund 229
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class S | Performance | expenses) | ||
Beginning Account Value | ||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,132.50 | $ | 1,019.98 |
Expenses Paid During Period* | $ | 5.13 | $ | 4.86 |
* Expenses are equal to the Fund's annualized expense ratio of 0.97%
(representing the six month period annualized), multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half
year period). May reflect amounts waived and/or reimbursed. Without any
waivers and/or reimbursements, expenses would have been higher.
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class T | Performance | expenses) | ||
Beginning Account Value | ||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,002.20 | $ | 1,020.48 |
Expenses Paid During Period* | $ | 1.07 | $ | 4.36 |
* Expenses are equal to the Fund's annualized expense ratio of 0.87%
(representing the 45-day period annualized), multiplied by the average
account value over the period, multiplied by 45/365 (to reflect the period since
commencement of operations). May reflect amounts waived and/or reimbursed.
Without any waivers and/or reimbursements, expenses would have been higher.
Hypothetical expenses are equal to the Fund’s annualized expense ratio of
0.87% (representing the six-month period annualized), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
on-half year period).
230 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 95.9% | CVS Health Corp. | 128,896 | 10,626 | ||||
Consumer Discretionary - 12.1% | Dr Pepper Snapple Group, Inc. | 14,940 | 1,369 | ||||
Amazon.com, Inc.(Æ) | 31,185 | 28,847 | General Mills, Inc. | 86,633 | 4,982 | ||
AutoZone, Inc.(Æ) | 2,200 | 1,523 | Hershey Co. (The) | 4,970 | 538 | ||
Best Buy Co., Inc. | 2,602 | 135 | Kimberly-Clark Corp. | 22,974 | 2,981 | ||
Carnival Corp. | 7,494 | 463 | Kraft Heinz Co. (The) | 71,337 | 6,448 | ||
CBS Corp. Class B | 23,776 | 1,583 | Kroger Co. (The) | 28,400 | 842 | ||
Charter Communications, Inc. Class A(Æ) | 15,373 | 5,306 | Molson Coors Brewing Co. Class B | 25,892 | 2,483 | ||
Chipotle Mexican Grill, Inc. Class A(Æ) | 11,582 | 5,495 | Mondelez International, Inc. Class A | 495,836 | 22,328 | ||
Comcast Corp. Class A | 432,979 | 16,968 | PepsiCo, Inc. | 170,387 | 19,301 | ||
Costco Wholesale Corp. | 15,714 | 2,790 | Philip Morris International, Inc. | 169,140 | 18,747 | ||
CST Brands, Inc. | 3,500 | 169 | Procter & Gamble Co. (The) | 41,918 | 3,661 | ||
DISH Network Corp. Class A(Æ) | 20,423 | 1,316 | Reynolds American, Inc. | 73,679 | 4,752 | ||
Dollar General Corp. | 5,400 | 393 | Tyson Foods, Inc. Class A | 61,124 | 3,928 | ||
Dollar Tree, Inc.(Æ) | 5,970 | 494 | Unilever NV | 237,951 | 12,431 | ||
DR Horton, Inc. | 23,709 | 780 | Walgreens Boots Alliance, Inc. | 49,579 | 4,291 | ||
eBay, Inc.(Æ) | 5,789 | 193 | Whole Foods Market, Inc. | 149,336 | 5,431 | ||
Estee Lauder Cos., Inc. (The) Class A | 968 | 84 | |||||
Expedia, Inc. | 5,900 | 789 | 154,905 | ||||
Ford Motor Co. | 376,232 | 4,315 | |||||
Gap, Inc. (The) | 32,259 | 845 | Energy - 6.9% | ||||
Anadarko Petroleum Corp. | 26,685 | 1,522 | |||||
General Motors Co. | 62,947 | 2,180 | Apache Corp. | 7,974 | 388 | ||
Hilton Worldwide Holdings, Inc. | 59,784 | 3,525 | Baker Hughes, Inc. | 16,422 | 975 | ||
Home Depot, Inc. (The) | 79,003 | 12,332 | BP PLC - ADR | 500,921 | 17,191 | ||
Interpublic Group of Cos., Inc. (The) | 65,624 | 1,547 | Cabot Oil & Gas Corp. | 42,924 | 998 | ||
Lennar Corp. Class A | 2,800 | 141 | Cenovus Energy, Inc. | 354,769 | 3,541 | ||
Lowe's Cos., Inc. | 185,439 | 15,740 | Chevron Corp. | 135,707 | 14,479 | ||
Macy's, Inc. | 12,300 | 359 | Concho Resources, Inc.(Æ) | 9,484 | 1,201 | ||
McDonald's Corp. | 5,663 | 792 | ConocoPhillips | 124,441 | 5,962 | ||
News Corp. Class A | 97,366 | 1,238 | Core Laboratories NV | 117,091 | 12,976 | ||
Nike, Inc. Class B | 244,174 | 13,530 | Devon Energy Corp. | 11,954 | 472 | ||
Omnicom Group, Inc. | 48,730 | 4,002 | Diamondback Energy, Inc.(Æ) | 23,321 | 2,328 | ||
O'Reilly Automotive, Inc.(Æ) | 20,832 | 5,169 | Enbridge, Inc. | 16,005 | 663 | ||
Priceline Group, Inc. (The)(Æ) | 5,043 | 9,314 | EOG Resources, Inc. | 37,079 | 3,430 | ||
PulteGroup, Inc. | 44,100 | 1,000 | EQT Corp. | 14,351 | 834 | ||
Ross Stores, Inc. | 18,800 | 1,222 | Exxon Mobil Corp. | 151,566 | 12,375 | ||
Royal Caribbean Cruises, Ltd. | 19,702 | 2,100 | Halliburton Co. | 146,966 | 6,743 | ||
Staples, Inc. | 210,037 | 2,052 | Kinder Morgan, Inc. | 29,066 | 600 | ||
Starbucks Corp. | 388,282 | 23,321 | Marathon Petroleum Corp. | 11,299 | 576 | ||
Target Corp. | 161,133 | 8,999 | Murphy Oil Corp. | 36,099 | 945 | ||
Time Warner, Inc. | 64,864 | 6,439 | Occidental Petroleum Corp. | 160,752 | 9,893 | ||
TJX Cos., Inc. | 163,973 | 12,895 | PBF Energy, Inc. Class A | 108,361 | 2,419 | ||
Twenty-First Century Fox, Inc. Class A | 112,333 | 3,431 | Phillips 66 | 91,655 | 7,292 | ||
VF Corp. | 26,000 | 1,420 | Pioneer Natural Resources Co. | 54,530 | 9,433 | ||
Wal-Mart Stores, Inc. | 258,466 | 19,432 | Royal Dutch Shell PLC Class A - ADR | 118,633 | 6,191 | ||
Walt Disney Co. (The) | 66,154 | 7,647 | Schlumberger, Ltd. | 183,518 | 13,322 | ||
Whirlpool Corp. | 16,553 | 3,074 | TransCanada Corp. | 10,996 | 511 | ||
Wyndham Worldwide Corp. | 77,055 | 7,344 | Valero Energy Corp. | 35,236 | 2,277 | ||
Yum China Holdings, Inc.(Æ) | 29,534 | 1,008 | Williams Cos., Inc. (The) | 14,626 | 448 | ||
Yum! Brands, Inc. | 22,645 | 1,489 | |||||
245,230 | 139,985 | ||||||
Consumer Staples - 7.7% | Financial Services - 20.6% | ||||||
Alliance Data Systems Corp. | 22,486 | 5,613 | |||||
Altria Group, Inc. | 193,022 | 13,855 | American Express Co. | 143,587 | 11,379 | ||
Archer-Daniels-Midland Co. | 59,978 | 2,744 | American International Group, Inc. | 172,145 | 10,485 | ||
Coca-Cola Co. (The) | 67,940 | 2,932 | American Tower Corp.(ö) | 148,692 | 18,726 | ||
Colgate-Palmolive Co. | 97,908 | 7,053 | Ameriprise Financial, Inc. | 49,854 | 6,374 | ||
Constellation Brands, Inc. Class A | 18,440 | 3,182 | Aon PLC | 38,352 | 4,596 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 231
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Arthur J Gallagher & Co. | 10,292 | 574 | Health Care - 12.3% | ||||
AvalonBay Communities, Inc.(ö) | 7,200 | 1,367 | Abbott Laboratories | 133,144 | 5,810 | ||
Axis Capital Holdings, Ltd. | 38,263 | 2,522 | AbbVie, Inc. | 67,323 | 4,439 | ||
Bank of America Corp. | 1,554,327 | 36,278 | Aetna, Inc. | 23,472 | 3,170 | ||
Bank of New York Mellon Corp. (The) | 28,859 | 1,358 | Alexion Pharmaceuticals, Inc.(Æ) | 5,448 | 696 | ||
BB&T Corp. | 6,074 | 262 | Allergan PLC(Æ) | 80,020 | 19,514 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 148,558 | 24,543 | Amgen, Inc. | 53,187 | 8,687 | ||
BlackRock, Inc. Class A | 5,485 | 2,109 | Anthem, Inc. | 56,128 | 9,985 | ||
Capital One Financial Corp. | 118,861 | 9,554 | Baxter International, Inc. | 7,837 | 436 | ||
Charles Schwab Corp. (The) | 64,673 | 2,513 | Becton Dickinson and Co. | 3,015 | 564 | ||
Chubb, Ltd. | 90,347 | 12,400 | Biogen, Inc.(Æ) | 11,230 | 3,046 | ||
Citigroup, Inc. | 331,426 | 19,594 | Bioverativ Inc.(Æ) | 5,615 | 330 | ||
CME Group, Inc. Class A | 2,510 | 292 | Boston Scientific Corp.(Æ) | 131,115 | 3,459 | ||
Comerica, Inc. | 60,506 | 4,278 | Bristol-Myers Squibb Co. | 91,694 | 5,139 | ||
Discover Financial Services | 29,578 | 1,851 | Cardinal Health, Inc. | 77,054 | 5,593 | ||
Equinix, Inc.(ö) | 27,247 | 11,381 | Celgene Corp.(Æ) | 40,912 | 5,075 | ||
Everest Re Group, Ltd. | 900 | 227 | Cerner Corp.(Æ) | 88,688 | 5,743 | ||
Fidelity National Information Services, Inc. | 32,784 | 2,760 | Cigna Corp. | 34,451 | 5,387 | ||
Fifth Third Bancorp | 11,520 | 281 | Eli Lilly & Co. | 62,496 | 5,128 | ||
First Republic Bank | 2,386 | 221 | Gilead Sciences, Inc. | 49,077 | 3,364 | ||
FleetCor Technologies, Inc.(Æ) | 42,989 | 6,067 | Humana, Inc. | 17,180 | 3,814 | ||
Franklin Resources, Inc. | 114,244 | 4,925 | Intuitive Surgical, Inc.(Æ) | 104 | 87 | ||
Goldman Sachs Group, Inc. (The) | 53,346 | 11,939 | Johnson & Johnson | 308,349 | 38,071 | ||
Hartford Financial Services Group, Inc. | 55,496 | 2,684 | McKesson Corp. | 18,692 | 2,585 | ||
Intercontinental Exchange, Inc. | 163,857 | 9,864 | Medtronic PLC | 157,904 | 13,120 | ||
Invesco, Ltd. | 31,200 | 1,028 | Merck & Co., Inc. | 309,312 | 19,279 | ||
JPMorgan Chase & Co. | 234,800 | 20,428 | Mylan NV(Æ) | 99,804 | 3,728 | ||
KeyCorp | 243,768 | 4,446 | Novo Nordisk A/S - ADR | 115,561 | 4,470 | ||
Loews Corp. | 204,585 | 9,538 | Pfizer, Inc. | 667,472 | 22,641 | ||
M&T Bank Corp. | 1,250 | 194 | Regeneron Pharmaceuticals, Inc.(Æ) | 13,923 | 5,409 | ||
Markel Corp.(Æ) | 13,841 | 13,420 | Sanofi - ADR | 164,693 | 7,790 | ||
MasterCard, Inc. Class A | 15,196 | 1,768 | Stryker Corp. | 13,945 | 1,902 | ||
MetLife, Inc. | 154,203 | 7,989 | Thermo Fisher Scientific, Inc. | 34,905 | 5,771 | ||
Moody's Corp. | 58,542 | 6,927 | UnitedHealth Group, Inc. | 124,574 | 21,786 | ||
Morgan Stanley | 224,736 | 9,747 | Vertex Pharmaceuticals, Inc.(Æ) | 8,712 | 1,031 | ||
Northern Trust Corp. | 1,827 | 164 | Zoetis, Inc. Class A | 13,700 | 769 | ||
PNC Financial Services Group, Inc. (The) | 22,409 | 2,683 | 247,818 | ||||
Prologis, Inc.(ö) | 9,600 | 522 | |||||
Prudential Financial, Inc. | 7,700 | 824 | Materials and Processing - 3.2% | ||||
Raymond James Financial, Inc. | 6,917 | 515 | AdvanSix, Inc.(Æ) | 13,686 | 373 | ||
Regions Financial Corp. | 293,859 | 4,041 | Air Products & Chemicals, Inc. | 1,928 | 271 | ||
Simon Property Group, Inc.(ö) | 4,200 | 694 | Ball Corp. | 3,000 | 231 | ||
SL Green Realty Corp.(ö) | 356 | 37 | Celanese Corp. Class A | 57,988 | 5,047 | ||
State Street Corp. | 296,159 | 24,848 | CRH PLC - ADR | 13,895 | 505 | ||
SunTrust Banks, Inc. | 6,350 | 361 | Crown Holdings, Inc.(Æ) | 14,346 | 805 | ||
SVB Financial Group(Æ) | 5,400 | 950 | Dow Chemical Co. (The) | 118,869 | 7,464 | ||
Synchrony Financial | 239,186 | 6,649 | Eastman Chemical Co. | 21,049 | 1,679 | ||
TD Ameritrade Holding Corp. | 6,600 | 253 | Ecolab, Inc. | 134,849 | 17,407 | ||
UBS Group AG | 164,003 | 2,790 | EI du Pont de Nemours & Co. | 185,185 | 14,768 | ||
US Bancorp | 172,375 | 8,839 | Ingersoll-Rand PLC | 16,221 | 1,440 | ||
Visa, Inc. Class A | 283,388 | 25,851 | Ingevity Corp.(Æ) | 4,417 | 279 | ||
Voya Financial, Inc. | 79,600 | 2,975 | International Paper Co. | 19,210 | 1,037 | ||
Wells Fargo & Co. | 450,642 | 24,263 | Martin Marietta Materials, Inc. | 6,899 | 1,519 | ||
XL Group, Ltd. | 175,812 | 7,358 | Masco Corp. | 34,631 | 1,282 | ||
417,119 | Monsanto Co. | 22,712 | 2,648 | ||||
Mosaic Co. (The) | 23,464 | 632 | |||||
PPG Industries, Inc. | 4,260 | 468 |
See accompanying notes which are an integral part of the financial statements.
232 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Praxair, Inc. | 37,887 | 4,735 | Analog Devices, Inc. | 44,403 | 3,384 | ||
Rio Tinto PLC - ADR | 37,916 | 1,510 | Apple, Inc. | 425,136 | 61,070 | ||
Versum Materials, Inc. | 1,866 | 60 | Applied Materials, Inc. | 23,100 | 938 | ||
WestRock Co. | 26,503 | 1,420 | Broadcom, Ltd. | 42,023 | 9,279 | ||
65,580 | CDK Global Inc. | 996 | 65 | ||||
Cisco Systems, Inc. | 292,052 | 9,950 | |||||
Producer Durables - 11.2% | Cognizant Technology Solutions Corp. Class | ||||||
3M Co. | 5,520 | 1,081 | A | 69,986 | 4,215 | ||
Accenture PLC Class A | 43,472 | 5,273 | Corning, Inc. | 57,783 | 1,667 | ||
Adient PLC | 69,281 | 5,096 | Dell Technologies, Inc. Class V(Æ) | 37,063 | 2,487 | ||
Allegion PLC | 17,438 | 1,371 | DXC Technology Co.(Æ) | 21,389 | 1,611 | ||
Automatic Data Processing, Inc. | 76,295 | 7,972 | Facebook, Inc. Class A(Æ) | 231,310 | 34,754 | ||
Boeing Co. (The) | 202 | 37 | Hewlett Packard Enterprise Co. | 248,993 | 4,639 | ||
Canadian Pacific Railway, Ltd. | 2,422 | 371 | HP, Inc. | 352,152 | 6,628 | ||
CSX Corp. | 63,100 | 3,208 | Intel Corp. | 287,900 | 10,408 | ||
Danaher Corp. | 8,637 | 720 | International Business Machines Corp. | 62,378 | 9,999 | ||
Deere & Co. | 11,061 | 1,235 | Intuit, Inc. | 76,963 | 9,637 | ||
Delphi Automotive PLC | 17,118 | 1,376 | KLA-Tencor Corp. | 5,800 | 570 | ||
Delta Air Lines, Inc. | 89,351 | 4,060 | Lam Research Corp. | 32,264 | 4,673 | ||
Dover Corp. | 71,632 | 5,650 | Microsoft Corp. | 582,719 | 39,892 | ||
Eaton Corp. PLC | 22,997 | 1,739 | NXP Semiconductors NV(Æ) | 44,519 | 4,708 | ||
Emerson Electric Co. | 13,090 | 789 | Oracle Corp. | 748,916 | 33,671 | ||
FedEx Corp. | 1,662 | 315 | QUALCOMM, Inc. | 191,755 | 10,305 | ||
Fortive Corp. | 124,280 | 7,862 | Red Hat, Inc.(Æ) | 73,619 | 6,484 | ||
General Dynamics Corp. | 47,303 | 9,167 | Salesforce.com, Inc.(Æ) | 94,486 | 8,137 | ||
General Electric Co. | 286,788 | 8,314 | SAP SE - ADR | 59,771 | 5,988 | ||
Honeywell International, Inc. | 275,195 | 36,090 | Seagate Technology PLC | 60,522 | 2,550 | ||
Illinois Tool Works, Inc. | 1,831 | 253 | TE Connectivity, Ltd. | 26,465 | 2,048 | ||
Johnson Controls International PLC | 189,498 | 7,877 | Texas Instruments, Inc. | 77,989 | 6,175 | ||
Kansas City Southern | 102,328 | 9,217 | Western Digital Corp. | 487 | 43 | ||
L3 Technologies, Inc. | 8,688 | 1,492 | Xilinx, Inc. | 5,800 | 366 | ||
Lockheed Martin Corp. | 1,670 | 450 | Yahoo!, Inc.(Æ) | 115 | 6 | ||
Mettler-Toledo International, Inc.(Æ) | 24,329 | 12,491 | 358,905 | ||||
Norfolk Southern Corp. | 38,039 | 4,469 | |||||
Northrop Grumman Corp. | 2,683 | 660 | Utilities - 4.1% | ||||
PACCAR, Inc. | 46,767 | 3,121 | American Electric Power Co., Inc. | 26,048 | 1,767 | ||
Parker-Hannifin Corp. | 32,138 | 5,168 | AT&T, Inc. | 558,140 | 22,119 | ||
Pentair PLC | 6,066 | 391 | California Resources Corp.(Æ) | 1,158 | 14 | ||
Raytheon Co. | 94,994 | 14,744 | Cheniere Energy, Inc.(Æ) | 5,800 | 263 | ||
Rockwell Collins, Inc. | 12,491 | 1,300 | CMS Energy Corp. | 37,178 | 1,688 | ||
Roper Technologies, Inc. | 22,633 | 4,950 | Dominion Resources, Inc. | 9,276 | 718 | ||
Sensata Technologies Holding NV(Æ) | 119,732 | 4,931 | Duke Energy Corp. | 46,694 | 3,852 | ||
Snap-on, Inc. | 3,734 | 626 | Edison International | 22,508 | 1,800 | ||
Southwest Airlines Co. | 180,729 | 10,161 | Entergy Corp. | 141,461 | 10,788 | ||
Stanley Black & Decker, Inc. | 138,369 | 18,839 | Exelon Corp. | 22,513 | 780 | ||
TopBuild Corp.(Æ) | 3,805 | 195 | FirstEnergy Corp. | 14,346 | 430 | ||
TransDigm Group, Inc. | 25,425 | 6,273 | NextEra Energy, Inc. | 55,480 | 7,410 | ||
Union Pacific Corp. | 57,199 | 6,404 | NiSource, Inc. | 38,538 | 935 | ||
United Continental Holdings, Inc.(Æ) | 23,732 | 1,666 | PG&E Corp. | 44,362 | 2,974 | ||
United Technologies Corp. | 70,258 | 8,360 | PPL Corp. | 24,300 | 926 | ||
Waste Management, Inc. | 4,229 | 308 | Sempra Energy | 14,900 | 1,684 | ||
226,072 | Southern Co. (The) | 36,697 | 1,828 | ||||
T-Mobile US, Inc.(Æ) | 27,385 | 1,842 | |||||
Technology - 17.8% | Verizon Communications, Inc. | 435,294 | 19,984 | ||||
Adobe Systems, Inc.(Æ) | 118,355 | 15,829 | Xcel Energy, Inc. | 41,419 | 1,866 | ||
Alphabet, Inc. Class A(Æ) | 11,449 | 10,585 | 83,668 | ||||
Alphabet, Inc. Class C(Æ) | 39,896 | 36,144 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 233
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||
Principal | Fair | ||||
Amount ($) or | Value | ||||
Shares | $ | ||||
Total Common Stocks | |||||
(cost $1,352,770) | 1,939,282 | ||||
Short-Term Investments - 4.0% | |||||
U.S. Cash Management Fund | 79,468,148 | (8) | 79,484 | ||
United States Treasury Bills | |||||
0.655% due 05/25/17 (~) | 1,200 | 1,199 | |||
Total Short-Term Investments | |||||
(cost $80,682) | 80,683 | ||||
Total Investments 99.9% | |||||
(identified cost $1,433,452) | 2,019,965 | ||||
Other Assets and Liabilities, Net | |||||
- 0.1% | 1,078 | ||||
Net Assets - 100.0% | 2,021,043 |
See accompanying notes which are an integral part of the financial statements.
234 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | ||||||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | |||||||||||||
Contracts | Amount | Date | $ | |||||||||||||
S&P 500 E-Mini Index Futures | 339 | USD | 40,349 | 06/17 | 261 | |||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 261 | |||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 245,230 | $ | — | $ | — | $ | — | $ | 245,230 | 12.1 | |||||
Consumer Staples | 154,905 | — | — | — | 154,905 | 7.7 | ||||||||||
Energy | 139,985 | — | — | — | 139,985 | 6.9 | ||||||||||
Financial Services | 417,119 | — | — | — | 417,119 | 20.6 | ||||||||||
Health Care | 247,818 | — | — | — | 247,818 | 12.3 | ||||||||||
Materials and Processing | 65,580 | — | — | — | 65,580 | 3.2 | ||||||||||
Producer Durables | 226,072 | — | — | — | 226,072 | 11.2 | ||||||||||
Technology | 358,905 | — | — | — | 358,905 | 17.8 | ||||||||||
Utilities | 83,668 | — | — | — | 83,668 | 4.1 | ||||||||||
Short-Term Investments | — | 1,199 | — | 79,484 | 80,683 | 4.0 | ||||||||||
Total Investments | 1,939,282 | 1,199 | — | 79,484 | 2,019,965 | 99.9 | ||||||||||
Other Assets and Liabilities, Net | 0.1 | |||||||||||||||
100.0 | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 261 | — | — | — | 261 | —* | ||||||||||
Total Other Financial Instruments** | $ | 261 | $ | — | $ | — | $ | — | $ | 261 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 235
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 261 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 10,792 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 2,365 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
236 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017
Amounts in thousands | ||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Assets | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||
Futures Contracts | Variation margin on futures contracts | $ | 238 | $ | — | $ | 238 | |||
Total Financial and Derivative Assets | 238 | — | 238 | |||||||
Financial and Derivative Assets not subject to a netting agreement | (238) | — | (238 | ) | ||||||
Total Financial and Derivative Assets subject to a netting agreement | $ | — | $ | — | $ | — |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 237
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 333 | $ | — | $ | 333 | ||
Total Financial and Derivative Liabilities | 333 | — | 333 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (333) | — | (333 | ) | |||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — | $ | — |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
238 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 1,433,452 | |
Investments, at fair value(>) | 2,019,965 | ||
Cash (restricted)(a) | 600 | ||
Receivables: | |||
Dividends and interest | 1,654 | ||
Dividends from affiliated funds | 44 | ||
Fund shares sold | 3,534 | ||
Variation margin on futures contracts | 238 | ||
Prepaid expenses | 21 | ||
Total assets | 2,026,056 | ||
Liabilities | |||
Payables: | |||
Due to custodian | 200 | ||
Fund shares redeemed | 2,736 | ||
Accrued fees to affiliates | 1,569 | ||
Other accrued expenses | 175 | ||
Variation margin on futures contracts | 333 | ||
Total liabilities | 5,013 | ||
Net Assets | $ | 2,021,043 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 239
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Net Assets Consist of: | ||
Undistributed (overdistributed) net investment income | $ | 5,027 |
Accumulated net realized gain (loss) | 9,782 | |
Unrealized appreciation (depreciation) on: | ||
Investments | 586,513 | |
Futures contracts | 261 | |
Shares of beneficial interest | 553 | |
Additional paid-in capital | 1,418,907 | |
Net Assets | $ | 2,021,043 |
Net Asset Value, offering and redemption price per share: | ||
Net asset value per share: Class A(#) | $ | 36.20 |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 38.41 |
Class A — Net assets | $ | 35,657,879 |
Class A — Shares outstanding ($.01 par value) | 985,065 | |
Net asset value per share: Class C(#) | $ | 34.42 |
Class C — Net assets | $ | 28,983,425 |
Class C — Shares outstanding ($.01 par value) | 842,150 | |
Net asset value per share: Class E(#) | $ | 36.38 |
Class E — Net assets | $ | 2,682,254 |
Class E — Shares outstanding ($.01 par value) | 73,730 | |
Net asset value per share: Class S(#) | $ | 36.56 |
Class S — Net assets | $ | 1,946,354,814 |
Class S — Shares outstanding ($.01 par value) | 53,236,178 | |
Net asset value per share: Class T(#) | $ | 36.57 |
Class T — Net assets | $ | 7,364,984 |
Class T — Shares outstanding ($.01 par value) | 201,407 | |
Amounts in thousands | ||
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 79,484 |
(a) Cash Collateral for Futures | $ | 600 |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
240 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Dividends | $ | 18,137 |
Dividends from affiliated funds | 365 | |
Interest | 16 | |
Total investment income | 18,518 | |
Expenses | ||
Advisory fees | 6,821 | |
Administrative fees | 477 | |
Custodian fees | 101 | |
Distribution fees - Class A | 41 | |
Distribution fees - Class C | 106 | |
Transfer agent fees - Class A | 33 | |
Transfer agent fees - Class C | 28 | |
Transfer agent fees - Class E | 27 | |
Transfer agent fees - Class S | 1,888 | |
Transfer agent fees - Class T | 1 | |
Professional fees | 45 | |
Registration fees | 66 | |
Shareholder servicing fees - Class C | 36 | |
Shareholder servicing fees - Class E | 33 | |
Trustees’ fees | 28 | |
Printing fees | 32 | |
Miscellaneous | 12 | |
Expenses before reductions | 9,775 | |
Expense reductions | (—)** | |
Net expenses | 9,775 | |
Net investment income (loss) | 8,743 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 26,060 | |
Futures contracts | 10,792 | |
Net realized gain (loss) | 36,852 | |
Net change in unrealized appreciation (depreciation) on: | ||
Investments | 199,110 | |
Futures contracts | 2,365 | |
Net change in unrealized appreciation (depreciation) | 201,475 | |
Net realized and unrealized gain (loss) | 238,327 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 247,070 |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 241
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 8,743 | $ | 15,700 | ||
Net realized gain (loss) | 36,852 | (14,711 | ) | |||
Net change in unrealized appreciation (depreciation) | 201,475 | 41,883 | ||||
Net increase (decrease) in net assets from operations | 247,070 | 42,872 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (199 | ) | (167 | ) | ||
Class E | (359 | ) | (273 | ) | ||
Class S | (15,504 | ) | (11,481 | ) | ||
Net decrease in net assets from distributions | (16,062 | ) | (11,921 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (46,422 | ) | 216,010 | |||
Total Net Increase (Decrease) in Net Assets | 184,586 | 246,961 | ||||
Net Assets | ||||||
Beginning of period | 1,836,457 | 1,589,496 | ||||
End of period | $ | 2,021,043 | $ | 1,836,457 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 5,027 | $ | 12,346 |
See accompanying notes which are an integral part of the financial statements.
242 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 118 | $ | 4,113 | 368 | $ | 11,470 | ||||||
Proceeds from reinvestment of distributions | 6 | 195 | 5 | 166 | ||||||||
Payments for shares redeemed | (73 | ) | (2,538 | ) | (207 | ) | (6,360 | ) | ||||
Net increase (decrease) | 51 | 1,770 | 166 | 5,276 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 88 | 2,863 | 232 | 6,883 | ||||||||
Payments for shares redeemed | (122 | ) | (4,018 | ) | (178 | ) | (5,289 | ) | ||||
Net increase (decrease) | (34 | ) | (1,155 | ) | 54 | 1,594 | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 64 | 2,157 | 264 | 8,336 | ||||||||
Proceeds from reinvestment of distributions | 10 | 359 | 9 | 271 | ||||||||
Payments for shares redeemed | (1,708 | ) | (58,783 | ) | (245 | ) | (7,705 | ) | ||||
Net increase (decrease) | (1,634 | ) | (56,267 | ) | 28 | 902 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 9,953 | 347,076 | 17,304 | 545,046 | ||||||||
Proceeds from reinvestment of distributions | 444 | 15,277 | 362 | 11,200 | ||||||||
Payments for shares redeemed | (10,140 | ) | (360,384 | ) | (11,033 | ) | (348,008 | ) | ||||
Net increase (decrease) | 257 | 1,969 | 6,633 | 208,238 | ||||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 202 | 7,275 | — | — | ||||||||
Payments for shares redeemed | (1 | ) | (14 | ) | — | — | ||||||
Net increase (decrease) | 201 | 7,261 | — | — | ||||||||
Total increase (decrease) | (1,159 | ) | $ | (46,422 | ) | 6,881 | $ | 216,010 | ||||
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 243
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 32.20 | .11 | 4.10 | 4.21 | (.21 | ) | — | |||||||||
October 31, 2016 | 31.76 | .22 | .40 | .62 | (.18 | ) | — | |||||||||
October 31, 2015 | 31.83 | .16 | 1.31 | 1.47 | (.14 | ) | (1.40 | ) | ||||||||
October 31, 2014 | 27.84 | .13 | 3.90 | 4.03 | (.04 | ) | — | |||||||||
October 31, 2013 | 22.11 | .06 | 5.79 | 5.85 | (.12 | ) | — | |||||||||
October 31, 2012 | 19.49 | .06 | 2.58 | 2.64 | (.02 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 30.54 | (.02 | ) | 3.90 | 3.88 | — | — | |||||||||
October 31, 2016 | 30.17 | (.02 | ) | .39 | .37 | — | — | |||||||||
October 31, 2015 | 30.40 | (.07 | ) | 1.24 | 1.17 | — | (1.40 | ) | ||||||||
October 31, 2014 | 26.76 | (.09 | ) | 3.73 | 3.64 | — | — | |||||||||
October 31, 2013 | 21.29 | (.11 | ) | 5.58 | 5.47 | — | — | |||||||||
October 31, 2012 | 18.88 | (.08 | ) | 2.49 | 2.41 | — | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 32.35 | .13 | 4.11 | 4.24 | (.21 | ) | — | |||||||||
October 31, 2016 | 31.89 | .22 | .40 | .62 | (.16 | ) | — | |||||||||
October 31, 2015 | 31.95 | .16 | 1.31 | 1.47 | (.13 | ) | (1.40 | ) | ||||||||
October 31, 2014 | 27.95 | .14 | 3.90 | 4.04 | (.04 | ) | — | |||||||||
October 31, 2013 | 22.17 | .07 | 5.81 | 5.88 | (.10 | ) | — | |||||||||
October 31, 2012 | 19.53 | .08 | 2.57 | 2.65 | (.01 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 32.55 | .16 | 4.14 | 4.30 | (.29 | ) | — | |||||||||
October 31, 2016 | 32.08 | .30 | .41 | .71 | (.24 | ) | — | |||||||||
October 31, 2015 | 32.13 | .24 | 1.32 | 1.56 | (.21 | ) | (1.40 | ) | ||||||||
October 31, 2014 | 28.10 | .21 | 3.92 | 4.13 | (.10 | ) | — | |||||||||
October 31, 2013 | 22.28 | .13 | 5.84 | 5.97 | (.15 | ) | — | |||||||||
October 31, 2012 | 19.63 | .13 | 2.58 | 2.71 | (.06 | ) | — | |||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 36.49 | (.01 | ) | .09 | .08 | — | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
244 Tax-Managed U.S. Large Cap Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | �� | to Average | to Average | Investment Income | % | ||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b)(k) | |||||||||
(.21 | ) | 36.20 | 13.11 | 35,658 | 1.22 | 1.22 | .64 | 22 | |||||||||
(.18 | ) | 32.20 | 2.00 | 30,087 | 1.23 | 1.23 | .70 | 23 | |||||||||
(1.54 | ) | 31.76 | 4.68 | 24,396 | 1.24 | 1.24 | .52 | 44 | |||||||||
(.04 | ) | 31.83 | 14.48 | 18,676 | 1.24 | 1.24 | .45 | 63 | |||||||||
(.12 | ) | 27.84 | 26.60 | 11,631 | 1.24 | 1.24 | .25 | 35 | |||||||||
(.02 | ) | 22.11 | 13.54 | 5,765 | 1.23 | 1.23 | .29 | 48 | |||||||||
— | 34.42 | 12.70 | 28,983 | 1.97 | 1.97 | (.10 | ) | 22 | |||||||||
— | 30.54 | 1.23 | 26,758 | 1.98 | 1.98 | (.05 | ) | 23 | |||||||||
(1.40 | ) | 30.17 | 3.88 | 24,808 | 1.99 | 1.99 | (.23 | ) | 44 | ||||||||
— | 30.40 | 13.60 | 19,360 | 1.99 | 1.99 | (.30 | ) | 63 | |||||||||
— | 26.76 | 25.69 | 14,927 | 1.99 | 1.98 | (.46 | ) | 35 | |||||||||
— | 21.29 | 12.71 | 10,733 | 1.98 | 1.94 | (.39 | ) | 48 | |||||||||
(.21 | ) | 36.38 | 13.14 | 2,682 | 1.20 | 1.20 | .76 | 22 | |||||||||
(.16 | ) | 32.35 | 1.98 | 55,245 | 1.23 | 1.23 | .70 | 23 | |||||||||
(1.53 | ) | 31.89 | 4.65 | 53,565 | 1.24 | 1.24 | .52 | 44 | |||||||||
(.04 | ) | 31.95 | 14.48 | 45,651 | 1.24 | 1.24 | .45 | 63 | |||||||||
(.10 | ) | 27.95 | 26.61 | 36,395 | 1.24 | 1.23 | .29 | 35 | |||||||||
(.01 | ) | 22.17 | 13.57 | 23,578 | 1.23 | 1.19 | .36 | 48 | |||||||||
(.29 | ) | 36.56 | 13.25 | 1,946,355 | .97 | .97 | .91 | 22 | |||||||||
(.24 | ) | 32.55 | 2.25 | 1,724,367 | .98 | .98 | .95 | 23 | |||||||||
(1.61 | ) | 32.08 | 4.92 | 1,486,727 | .99 | .99 | .77 | 44 | |||||||||
(.10 | ) | 32.13 | 14.75 | 1,181,891 | .99 | .99 | .70 | 63 | |||||||||
(.15 | ) | 28.10 | 26.94 | 758,556 | .99 | .98 | .53 | 35 | |||||||||
(.06 | ) | 22.28 | 13.84 | 473,227 | .98 | .94 | .61 | 48 | |||||||||
— | 36.57 | .22 | 7,365 | .97 | .87 | (.25 | ) | 22 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Large Cap Fund 245
Russell Investment Company
Tax-Managed U.S. Large Cap Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 1,127,239 |
Administration fees | 78,813 | |
Distribution fees | 24,873 | |
Shareholder servicing fees | 6,434 | |
Transfer agent fees | 326,296 | |
Trustee fees | 4,940 | |
$ | 1,568,595 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Management Fund | $ | 110,226 | $ | 304,572 | $ | 335,297 | $ | — | $ | (17) | $ | 79,484 | $ | 365 | $ | — | ||
$ | 110,226 | $ | 304,572 | $ | 335,297 | $ | — | $ | (17) | $ | 79,484 | $ | 365 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 1,436,038,281 | |||
Unrealized Appreciation | $ | 591,495,846 | |||
Unrealized Depreciation | (7,569,021 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 583,926,825 |
See accompanying notes which are an integral part of the financial statements.
246 Tax-Managed U.S. Large Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,152.40 | $ | 1,017.21 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 8.17 | $ | 7.65 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.53% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,148.50 | $ | 1,013.64 | |
Expenses Paid During Period* | $ | 11.99 | $ | 11.23 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 2.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,152.60 | $ | 1,017.41 | |
of other funds. | Expenses Paid During Period* | $ | 7.95 | $ | 7.45 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.49% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Tax-Managed U.S. Mid & Small Cap Fund 247
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class S | Performance | expenses) | ||
Beginning Account Value | ||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,154.40 | $ | 1,018.60 |
Expenses Paid During Period* | $ | 6.68 | $ | 6.26 |
* Expenses are equal to the Fund's annualized expense ratio of 1.25%
(representing the six month period annualized), multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half
year period). May reflect amounts waived and/or reimbursed. Without any
waivers and/or reimbursements, expenses would have been higher.
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class T | Performance | expenses) | ||
Beginning Account Value | ||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,016.40 | $ | 1,019.09 |
Expenses Paid During Period* | $ | 1.43 | $ | 5.76 |
* Expenses are equal to the Fund's annualized expense ratio of 1.15%
(representing the 45-day period annualized), multiplied by the average
account value over the period, multiplied by 45/365 (to reflect the period since
commencement of operations). May reflect amounts waived and/or reimbursed.
Without any waivers and/or reimbursements, expenses would have been higher.
Hypothetical expenses are equal to the Fund’s annualized expense ratio of
1.15% (representing the six-month period annualized), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
on-half year period).
248 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 92.2% | Michael Kors Holdings, Ltd.(Æ) | 12,856 | 480 | ||||
Consumer Discretionary - 12.3% | Monro Muffler Brake, Inc. | 16,360 | 848 | ||||
1-800-Flowers.com, Inc. Class A(Æ) | 14,360 | 154 | Motorcar Parts of America, Inc.(Æ) | 96,152 | 2,915 | ||
Aaron's, Inc. Class A | 5,967 | 214 | Murphy USA, Inc.(Æ) | 1,877 | 131 | ||
American Axle & Manufacturing Holdings, | National Presto Industries, Inc. | 425 | 44 | ||||
Inc.(Æ) | 8,987 | 158 | Noodles & Co. Class A(Æ)(Ñ) | 136,462 | 798 | ||
Barnes & Noble Education, Inc.(Æ) | 4,196 | 44 | Norwegian Cruise Line Holdings, Ltd.(Æ) | 3,307 | 178 | ||
Beazer Homes USA, Inc.(Æ) | 83,830 | 1,040 | Nutrisystem, Inc. | 11,236 | 601 | ||
Big Lots, Inc.(Ñ) | 14,214 | 718 | NVR, Inc.(Æ) | 62 | 131 | ||
Bloomin' Brands, Inc. | 10,325 | 224 | Ollie's Bargain Outlet Holdings, Inc.(Æ)(Ñ) | 56,835 | 2,177 | ||
Bob Evans Farms, Inc. | 25,572 | 1,707 | Outfront Media, Inc.(ö) | 32,988 | 863 | ||
Brinker International, Inc.(Ñ) | 5,264 | 233 | Oxford Industries, Inc. | 8,339 | 483 | ||
Buffalo Wild Wings, Inc.(Æ) | 5,130 | 808 | Polaris Industries, Inc.(Ñ) | 7,336 | 625 | ||
Burlington Stores, Inc.(Æ) | 14,503 | 1,435 | Pool Corp. | 18,158 | 2,172 | ||
Cabela's, Inc.(Æ) | 14,100 | 770 | PulteGroup, Inc. | 8,808 | 200 | ||
Cable One, Inc. | 366 | 250 | Red Robin Gourmet Burgers, Inc.(Æ) | 2,684 | 158 | ||
Caesars Acquisition Co. Class A(Æ) | 29,853 | 521 | Sally Beauty Holdings, Inc.(Æ) | 73,186 | 1,392 | ||
Callaway Golf Co. | 14,281 | 169 | Scholastic Corp. | 35,112 | 1,518 | ||
Capella Education Co. | 9,579 | 913 | Service Corp. International | 12,050 | 388 | ||
Carter's, Inc. | 12,153 | 1,119 | Shoe Carnival, Inc. | 6,564 | 167 | ||
Cheesecake Factory, Inc. (The) | 16,428 | 1,054 | Shutterfly, Inc.(Æ) | 26,229 | 1,361 | ||
Chico's FAS, Inc. | 10,882 | 150 | Signet Jewelers, Ltd. | 3,056 | 201 | ||
Cimpress NV(Æ)(Ñ) | 544 | 45 | Six Flags Entertainment Corp. | 9,738 | 610 | ||
Columbia Sportswear Co. | 9,532 | 540 | Skechers U.S.A., Inc. Class A(Æ) | 26,018 | 657 | ||
Cooper Tire & Rubber Co. | 4,271 | 164 | SodaStream International, Ltd.(Æ)(Ñ) | 11,459 | 623 | ||
CST Brands, Inc. | 2,748 | 133 | Sturm Ruger & Co., Inc.(Ñ) | 3,231 | 195 | ||
Dana Holding Corp. | 9,122 | 177 | TEGNA, Inc. | 6,655 | 170 | ||
Domino's Pizza, Inc. | 7,308 | 1,326 | Tenneco, Inc. | 20,357 | 1,283 | ||
Dorman Products, Inc.(Æ) | 16,238 | 1,350 | Tiffany & Co. | 7,631 | 699 | ||
Duluth Holdings, Inc. Class B(Æ)(Ñ) | 42,900 | 950 | Toll Brothers, Inc. | 37,024 | 1,332 | ||
Ethan Allen Interiors, Inc. | 45,899 | 1,368 | Townsquare Media, Inc. Class A(Æ) | 57,665 | 698 | ||
First Cash Financial Services, Inc. | 23,636 | 1,228 | Tupperware Brands Corp. | 2,897 | 208 | ||
Five Below, Inc.(Æ) | 38,232 | 1,878 | Vail Resorts, Inc. | 589 | 116 | ||
Foot Locker, Inc. | 3,318 | 257 | WABCO Holdings, Inc.(Æ) | 700 | 83 | ||
Fortune Brands Home & Security, Inc. | 11,380 | 725 | Wyndham Worldwide Corp. | 2,673 | 255 | ||
FTD Cos., Inc.(Æ) | 27,183 | 544 | |||||
Gannett Co., Inc. | 3,383 | 28 | 58,539 | ||||
Gentex Corp. | 12,980 | 268 | |||||
Gentherm, Inc.(Æ) | 45,792 | 1,701 | Consumer Staples - 2.8% | ||||
Goodyear Tire & Rubber Co. (The) | 9,881 | 358 | Andersons, Inc. (The) | 6,196 | 231 | ||
Grand Canyon Education, Inc.(Æ) | 12,944 | 973 | B&G Foods, Inc. Class A | 5,878 | 247 | ||
Hanesbrands, Inc.(Ñ) | 10,236 | 223 | Cal-Maine Foods, Inc.(Æ)(Ñ) | 25,233 | 953 | ||
Hemisphere Media Group, Inc. Class A(Æ) | Casey's General Stores, Inc.(Ñ) | 17,162 | 1,923 | ||||
(Ñ) | 62,077 | 723 | Energizer Holdings, Inc.(Æ) | 15,210 | 1,026 | ||
Horizon Global Corp.(Æ) | 36,299 | 511 | Hain Celestial Group, Inc. (The)(Æ) | 5,750 | 213 | ||
ILG, Inc. | 8,884 | 214 | Herbalife, Ltd.(Æ)(Ñ) | 1,246 | 79 | ||
Interpublic Group of Cos., Inc. (The) | 14,186 | 334 | Ingredion, Inc. | 1,243 | 154 | ||
John Wiley & Sons, Inc. Class A | 3,050 | 161 | Lancaster Colony Corp. | 12,788 | 1,610 | ||
Liberty Broadband Corp. Class A(Æ) | 262 | 24 | Medifast, Inc. | 7,437 | 345 | ||
Liberty Broadband Corp. Class C(Æ) | 633 | 58 | MGP Ingredients, Inc.(Ñ) | 5,280 | 276 | ||
Liberty Media Corp.-Liberty Formula One | National Beverage Corp. | 376 | 33 | ||||
Class C(Æ)(Ñ) | 524 | 18 | Nu Skin Enterprises, Inc. Class A | 2,533 | 140 | ||
Liberty Media Corp.-Liberty SiriusXM Class | Omega Protein Corp. | 7,101 | 143 | ||||
A(Æ) | 166 | 6 | PetMed Express, Inc.(Ñ) | 17,579 | 406 | ||
Liberty SiriusXM Group Class C(Æ) | 2,096 | 80 | Pinnacle Foods, Inc. | 285 | 17 | ||
LKQ Corp.(Æ) | 63,022 | 1,969 | Post Holdings, Inc.(Æ) | 5,407 | 455 | ||
Lumber Liquidators Holdings, Inc.(Æ)(Ñ) | 80,576 | 1,978 | Safeway, Inc.(Æ) | 9,450 | 5 | ||
Matthews International Corp. Class A | 26,059 | 1,786 | Sanderson Farms, Inc.(Ñ) | 19,716 | 2,283 | ||
Snyders-Lance, Inc. | 19,813 | 699 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 249
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Spectrum Brands Holdings, Inc. | 987 | 142 | Argo Group International Holdings, Ltd. | 29,156 | 1,923 | ||
Sprouts Farmers Market, Inc.(Æ) | 21,033 | 469 | Armada Hoffler Properties, Inc. (ö) | 9,757 | 139 | ||
TreeHouse Foods, Inc.(Æ) | 12,630 | 1,106 | Ashford Hospitality Trust, Inc. (ö) | 46,366 | 290 | ||
Vector Group, Ltd. | 12,445 | 270 | Assurant, Inc. | 5,539 | 533 | ||
13,225 | Assured Guaranty, Ltd. | 12,463 | 475 | ||||
Astoria Financial Corp. | 9,124 | 186 | |||||
Energy - 3.7% | Axis Capital Holdings, Ltd. | 5,244 | 346 | ||||
Atwood Oceanics, Inc.(Æ) | 10,389 | 81 | Banco Latinoamericano de Comercio Exterior | ||||
Bill Barrett Corp.(Æ) | 101,537 | 390 | SA Class E | 6,718 | 193 | ||
Chesapeake Energy Corp.(Æ)(Ñ) | 50,888 | 268 | Bancorp, Inc. (The)(Æ) | 39,748 | 256 | ||
CONSOL Energy, Inc.(Æ) | 5,245 | 80 | BancorpSouth, Inc. | 55,588 | 1,693 | ||
Diamondback Energy, Inc.(Æ) | 7,854 | 784 | Bank of Hawaii Corp. | 1,087 | 89 | ||
Dril-Quip, Inc.(Æ) | 8,911 | 459 | Blackhawk Network Holdings, Inc. Class | ||||
Energen Corp.(Æ) | 5,905 | 307 | A(Æ) | 25,278 | 1,022 | ||
Ensco PLC Class A | 21,048 | 166 | BofI Holding, Inc.(Æ)(Ñ) | 34,223 | 818 | ||
Exterran Corp.(Æ) | 3,009 | 82 | Broadridge Financial Solutions, Inc. | 5,818 | 407 | ||
First Solar, Inc.(Æ) | 4,127 | 122 | Camden Property Trust(ö) | 3,242 | 267 | ||
Green Plains, Inc. | 14,705 | 338 | Care Capital Properties, Inc. (ö) | 10,214 | 274 | ||
Gulfport Energy Corp.(Æ) | 61,569 | 978 | CBOE Holdings, Inc. | 3,885 | 320 | ||
Helix Energy Solutions Group, Inc.(Æ) | 67,777 | 415 | Cedar Realty Trust, Inc. (ö) | 20,389 | 110 | ||
Helmerich & Payne, Inc.(Ñ) | 14,426 | 875 | CenterState Banks, Inc. | 62,231 | 1,570 | ||
Matador Resources Co.(Æ)(Ñ) | 31,783 | 689 | Central Pacific Financial Corp. | 8,782 | 275 | ||
McDermott International, Inc.(Æ) | 287,421 | 1,880 | Chimera Investment Corp. (ö) | 46,499 | 947 | ||
Oceaneering International, Inc. | 3,328 | 88 | City Holding Co. | 1,479 | 105 | ||
Oil States International, Inc.(Æ) | 33,421 | 994 | CNO Financial Group, Inc. | 20,964 | 442 | ||
Parsley Energy, Inc. Class A(Æ) | 19,637 | 585 | Colony NorthStar, Inc. Class A(ö) | 43,660 | 571 | ||
Patterson-UTI Energy, Inc. | 2,077 | 45 | Columbia Banking System, Inc. | 34,327 | 1,356 | ||
PBF Energy, Inc. Class A(Ñ) | 33,893 | 757 | Columbia Property Trust, Inc.(ö) | 12,722 | 286 | ||
REX American Resources Corp.(Æ) | 11,703 | 1,108 | Community Bank System, Inc. | 28,319 | 1,584 | ||
Rice Energy, Inc.(Æ) | 11,011 | 234 | CoreCivic, Inc.(Æ) | 5,353 | 184 | ||
RPC, Inc.(Ñ) | 15,704 | 285 | CVB Financial Corp. | 10,947 | 236 | ||
RSP Permian, Inc.(Æ) | 45,955 | 1,749 | DCT Industrial Trust, Inc.(ö) | 61,545 | 3,112 | ||
SEACOR Holdings, Inc.(Æ) | 4,299 | 282 | Diamond Hill Investment Group, Inc. | 1,218 | 246 | ||
Southwestern Energy Co.(Æ) | 102,993 | 773 | Douglas Emmett, Inc.(ö) | 3,358 | 126 | ||
SRC Energy, Inc.(Æ)(Ñ) | 133,054 | 1,003 | Duke Realty Corp.(ö) | 9,864 | 274 | ||
Tesoro Corp. | 3,098 | 247 | Dun & Bradstreet Corp. (The) | 17,060 | 1,870 | ||
Transocean, Ltd.(Æ) | 22,380 | 247 | E*Trade Financial Corp.(Æ) | 12,782 | 442 | ||
Whiting Petroleum Corp.(Æ) | 28,081 | 233 | East West Bancorp, Inc. | 9,666 | 525 | ||
Willbros Group, Inc.(Æ) | 121,704 | 335 | Eaton Vance Corp. | 4,476 | 192 | ||
World Fuel Services Corp. | 3,375 | 124 | Education Realty Trust, Inc. (ö) | 70,575 | 2,736 | ||
WPX Energy, Inc.(Æ) | 56,962 | 680 | Enova International, Inc.(Æ) | 30,176 | 428 | ||
EPR Properties(ö) | 588 | 43 | |||||
17,683 | Equity Commonwealth (Æ)(ö) | 27,022 | 864 | ||||
Equity LifeStyle Properties, Inc. Class A(ö) | 1,461 | 118 | |||||
Financial Services - 24.5% | Erie Indemnity Co. Class A | 7,202 | 892 | ||||
Alexandria Real Estate Equities, Inc.(ö) | 2,082 | 234 | Euronet Worldwide, Inc.(Æ) | 11,467 | 947 | ||
Ally Financial, Inc. | 10,955 | 217 | Everest Re Group, Ltd. | 2,742 | 690 | ||
Altisource Residential Corp. (ö) | 4,184 | 60 | Extra Space Storage, Inc. (ö) | 3,027 | 229 | ||
Ambac Financial Group, Inc.(Æ) | 14,068 | 273 | FactSet Research Systems, Inc. | 3,778 | 617 | ||
American Equity Investment Life Holding | Fair Isaac Corp. | 18,693 | 2,532 | ||||
Co. | 85,646 | 2,031 | FCB Financial Holdings, Inc. Class A(Æ) | 894 | 42 | ||
American Financial Group, Inc. | 4,297 | 418 | Federal Agricultural Mortgage Corp. Class C | 8,229 | 469 | ||
American Homes 4 Rent Class A(ö) | 6,889 | 159 | Federal Realty Investment Trust(ö) | 739 | 97 | ||
American National Insurance Co. | 1,564 | 183 | FelCor Lodging Trust, Inc. (ö) | 20,410 | 158 | ||
Anworth Mortgage Asset Corp. (ö) | 24,430 | 143 | Fidelity & Guaranty Life(Ñ) | 984 | 28 | ||
Apple Hospitality REIT, Inc.(ö) | 3,471 | 65 | First Commonwealth Financial Corp. | 27,032 | 349 | ||
Arch Capital Group, Ltd.(Æ) | 2,102 | 204 | First Financial Bancorp | 10,984 | 304 | ||
Ares Capital Corp. | 2,664 | 47 | First Industrial Realty Trust, Inc.(ö) | 107,283 | 3,019 |
See accompanying notes which are an integral part of the financial statements.
250 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
First Midwest Bancorp, Inc. | 7,424 | 169 | Raymond James Financial, Inc. | 4,148 | 309 | ||
First Republic Bank | 47,190 | 4,363 | Rayonier, Inc.(ö) | 14,986 | 423 | ||
FNB Corp. | 61,387 | 874 | RE/MAX Holdings, Inc. Class A | 6,188 | 366 | ||
FNF Group | 3,491 | 143 | Reinsurance Group of America, Inc. Class A | 2,529 | 316 | ||
FNFV Group(Æ) | 2,908 | 40 | RenaissanceRe Holdings, Ltd. | 746 | 106 | ||
Four Corners Property Trust, Inc. (ö) | 7,233 | 169 | Retail Opportunity Investments Corp.(ö) | 9,870 | 203 | ||
Gaming and Leisure Properties, Inc. (ö) | 10,931 | 380 | Retail Properties of America, Inc. Class A(ö) | 111,172 | 1,483 | ||
Genworth Financial, Inc. Class A(Æ) | 108,399 | 438 | RLJ Lodging Trust(ö) | 8,498 | 183 | ||
Getty Realty Corp. (ö) | 8,597 | 220 | RMR Group, Inc. (The) Class A | 7,070 | 373 | ||
Glacier Bancorp, Inc. | 40,557 | 1,370 | Ryman Hospitality Properties, Inc.(ö) | 4,049 | 258 | ||
Great Western Bancorp, Inc. | 5,207 | 214 | SEI Investments Co. | 12,878 | 653 | ||
Green Dot Corp. Class A(Æ) | 20,190 | 692 | Selective Insurance Group, Inc. | 83,304 | 4,398 | ||
Hanover Insurance Group, Inc. (The) | 41,111 | 3,629 | ServisFirst Bancshares, Inc.(Ñ) | 764 | 29 | ||
Hartford Financial Services Group, Inc. | 3,302 | 160 | Signature Bank(Æ) | 11,929 | 1,652 | ||
Healthcare Realty Trust, Inc. (ö) | 63,658 | 2,088 | SLM Corp.(Æ) | 75,562 | 948 | ||
Highwoods Properties, Inc.(ö) | 5,700 | 290 | South State Corp. | 15,125 | 1,333 | ||
Home BancShares, Inc. | 30,544 | 777 | State Bank Financial Corp. | 52,229 | 1,403 | ||
Houlihan Lokey, Inc. Class A | 15,496 | 520 | Sterling Bancorp | 84,983 | 1,976 | ||
Huntington Bancshares, Inc. | 23,662 | 304 | Summit Hotel Properties, Inc. (ö) | 21,662 | 358 | ||
Iberiabank Corp. | 422 | 33 | Sun Communities, Inc.(ö) | 27,433 | 2,294 | ||
Invesco Mortgage Capital, Inc. (ö) | 56,239 | 917 | SVB Financial Group(Æ) | 22,112 | 3,890 | ||
iStar, Inc. (Æ)(ö) | 16,287 | 199 | Tanger Factory Outlet Centers, Inc. (ö) | 9,523 | 297 | ||
Jack Henry & Associates, Inc. | 1,611 | 156 | TriState Capital Holdings, Inc.(Æ) | 3,143 | 78 | ||
KeyCorp | 29,368 | 536 | UMB Financial Corp. | 19,681 | 1,427 | ||
Kilroy Realty Corp.(ö) | 3,359 | 237 | Umpqua Holdings Corp. | 37,564 | 664 | ||
Lamar Advertising Co. Class A(ö) | 6,641 | 479 | Union Bankshares Corp. | 39,720 | 1,360 | ||
LaSalle Hotel Properties(ö) | 6,953 | 199 | United Community Banks, Inc. | 60,617 | 1,658 | ||
Lazard, Ltd. Class A | 16,836 | 723 | Universal Insurance Holdings, Inc.(Ñ) | 8,695 | 226 | ||
LegacyTexas Financial Group, Inc. | 10,997 | 416 | Urstadt Biddle Properties, Inc. Class A(ö) | 5,742 | 113 | ||
LendingTree, Inc.(Æ) | 6,039 | 851 | Voya Financial, Inc. | 11,360 | 425 | ||
Life Storage, Inc.(Æ) | 8,331 | 653 | Webster Financial Corp. | 33,478 | 1,701 | ||
MarketAxess Holdings, Inc. | 1,468 | 283 | WesBanco, Inc. | 30,981 | 1,233 | ||
Medical Properties Trust, Inc.(ö) | 24,356 | 318 | World Acceptance Corp.(Æ) | 5,306 | 281 | ||
MGIC Investment Corp.(Æ) | 298,324 | 3,144 | WR Berkley Corp. | 3,831 | 260 | ||
Mid-America Apartment Communities, Inc. | WSFS Financial Corp. | 8,031 | 379 | ||||
(ö) | 17,247 | 1,711 | Zions Bancorporation | 8,633 | 346 | ||
MSCI, Inc. Class A | 8,541 | 857 | 116,381 | ||||
National Health Investors, Inc. (ö) | 11,955 | 875 | |||||
Navigators Group, Inc. (The) | 5,082 | 275 | Health Care - 9.9% | ||||
Northwest Bancshares, Inc. | 8,090 | 131 | Acadia Healthcare Co., Inc.(Æ)(Ñ) | 12,649 | 551 | ||
OceanFirst Financial Corp. | 21,413 | 592 | Acadia Pharmaceuticals, Inc.(Æ)(Ñ) | 7,822 | 269 | ||
OFG Bancorp(Ñ) | 84,045 | 983 | Akebia Therapeutics, Inc.(Æ) | 28,505 | 376 | ||
Old National Bancorp | 64,200 | 1,079 | Akorn, Inc.(Æ) | 102,811 | 3,439 | ||
OM Asset Management PLC | 37,506 | 584 | Albany Molecular Research, Inc.(Æ)(Ñ) | 67,024 | 1,073 | ||
OneBeacon Insurance Group, Ltd. Class A | 25,513 | 407 | Alere, Inc.(Æ) | 5,509 | 271 | ||
Oritani Financial Corp. | 8,387 | 142 | Align Technology, Inc.(Æ) | 28,531 | 3,841 | ||
PacWest Bancorp | 26,097 | 1,289 | Athenahealth, Inc.(Æ)(Ñ) | 5,352 | 525 | ||
Paramount Group, Inc.(ö) | 22,331 | 366 | Avexis, Inc.(Æ)(Ñ) | 2,843 | 229 | ||
People's Utah Bancorp | 5,621 | 148 | Bio-Rad Laboratories, Inc. Class A(Æ) | 4,626 | 1,010 | ||
Piedmont Office Realty Trust, Inc. Class A(ö) | 10,158 | 222 | BioSpecifics Technologies Corp.(Æ) | 3,273 | 186 | ||
Pinnacle Financial Partners, Inc. | 12,713 | 814 | Bio-Techne Corp. | 19,242 | 2,060 | ||
Popular, Inc. | 31,311 | 1,312 | BioTelemetry, Inc.(Æ) | 2,200 | 72 | ||
PRA Group, Inc.(Æ) | 38,200 | 1,230 | Brookdale Senior Living, Inc. Class A(Æ) | 63,041 | 819 | ||
Preferred Apartment Communities, Inc. Class | Cantel Medical Corp. | 12,468 | 928 | ||||
A(ö) | 15,743 | 223 | Celldex Therapeutics, Inc.(Æ)(Ñ) | 7,464 | 25 | ||
Primerica, Inc. | 2,921 | 245 | Centene Corp.(Æ) | 6,254 | 465 | ||
PS Business Parks, Inc. (ö) | 3,323 | 404 | |||||
Radian Group, Inc. | 48,956 | 826 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 251
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Charles River Laboratories International, | Carpenter Technology Corp. | 21,149 | 859 | ||||
Inc.(Æ) | 7,982 | 716 | Century Aluminum Co.(Æ) | 71,706 | 978 | ||
Chemed Corp. | 2,336 | 470 | CF Industries Holdings, Inc. | 16,119 | 431 | ||
CONMED Corp. | 27,784 | 1,366 | Compass Minerals International, Inc.(Ñ) | 5,721 | 378 | ||
Cooper Cos., Inc. (The) | 2,058 | 412 | Crown Holdings, Inc.(Æ) | 7,741 | 434 | ||
DexCom, Inc.(Æ) | 7,077 | 552 | Eagle Materials, Inc. | 9,676 | 929 | ||
DYAX Corp.(Æ) | 5,306 | 6 | FMC Corp. | 22,470 | 1,645 | ||
Exact Sciences Corp.(Æ)(Ñ) | 8,202 | 246 | GCP Applied Technologies, Inc.(Æ) | 39,690 | 1,306 | ||
Haemonetics Corp.(Æ) | 20,950 | 877 | Global Brass & Copper Holdings, Inc. | 16,735 | 597 | ||
Henry Schein, Inc.(Æ) | 1,751 | 304 | Hexcel Corp. | 1,255 | 65 | ||
Heska Corp.(Æ) | 4,238 | 459 | Innophos Holdings, Inc. | 13,490 | 647 | ||
Hologic, Inc.(Æ) | 9,896 | 447 | Innospec, Inc. | 4,161 | 275 | ||
Icon PLC(Æ) | 19,805 | 1,673 | ITT, Inc. | 39,309 | 1,656 | ||
ICU Medical, Inc.(Æ) | 264 | 41 | LB Foster Co. Class A | 5,089 | 72 | ||
Integra LifeSciences Holdings Corp.(Æ) | 47,112 | 2,166 | Lennox International, Inc. | 3,222 | 533 | ||
Invacare Corp. | 108,451 | 1,594 | LSB Industries, Inc.(Æ)(Ñ) | 63,122 | 696 | ||
Ionis Pharmaceuticals, Inc.(Æ)(Ñ) | 7,245 | 349 | Martin Marietta Materials, Inc. | 2,704 | 595 | ||
Kindred Healthcare, Inc. | 79,433 | 763 | Minerals Technologies, Inc. | 21,553 | 1,696 | ||
Lannett Co., Inc.(Æ)(Ñ) | 45,086 | 1,172 | Mosaic Co. (The) | 7,433 | 200 | ||
LifePoint Health, Inc.(Æ) | 5,147 | 320 | NewMarket Corp. | 1,978 | 931 | ||
Ligand Pharmaceuticals, Inc. Class B(Æ)(Ñ) | 9,648 | 1,073 | Owens Corning | 3,111 | 189 | ||
Masimo Corp.(Æ) | 2,797 | 287 | Owens-Illinois, Inc.(Æ) | 10,534 | 230 | ||
MEDNAX, Inc.(Æ) | 9,944 | 600 | Packaging Corp. of America | 4,726 | 467 | ||
MiMedx Group, Inc.(Æ)(Ñ) | 63,959 | 812 | PGT Innovations, Inc.(Æ) | 71,512 | 779 | ||
Molina Healthcare, Inc.(Æ) | 1,049 | 52 | PolyOne Corp. | 6,686 | 262 | ||
Omnicell, Inc.(Æ) | 39,876 | 1,651 | RBC Bearings, Inc.(Æ) | 1,937 | 194 | ||
Orthofix International NV(Æ) | 4,798 | 190 | Reliance Steel & Aluminum Co. | 8,900 | 701 | ||
Oxford Immunotec Global PLC(Æ) | 10,701 | 165 | RPM International, Inc. | 8,107 | 426 | ||
PRA Health Sciences, Inc.(Æ) | 20,317 | 1,299 | Schweitzer-Mauduit International, Inc. | 2,050 | 88 | ||
Premier, Inc. Class A(Æ) | 33,387 | 1,129 | Sealed Air Corp. | 631 | 28 | ||
Prestige Brands Holdings, Inc.(Æ) | 175 | 10 | Sensient Technologies Corp. | 12,567 | 1,028 | ||
PTC Therapeutics, Inc.(Æ)(Ñ) | 9,522 | 116 | Sonoco Products Co. | 3,919 | 205 | ||
Quality Systems, Inc.(Æ) | 2,976 | 42 | Steel Dynamics, Inc. | 7,194 | 260 | ||
Ra Pharmaceuticals, Inc.(Æ) | 15,979 | 377 | Trex Co., Inc.(Æ) | 925 | 68 | ||
Retrophin, Inc.(Æ) | 11,497 | 225 | Trinseo SA | 13,978 | 928 | ||
Sarepta Therapeutics, Inc.(Æ) | 13,002 | 471 | Unifi, Inc.(Æ) | 31,456 | 883 | ||
SciClone Pharmaceuticals, Inc.(Æ) | 13,241 | 128 | Universal Forest Products, Inc. | 2,625 | 250 | ||
Seattle Genetics, Inc.(Æ) | 4,553 | 311 | US Silica Holdings, Inc. | 4,390 | 182 | ||
Spark Therapeutics, Inc.(Æ) | 5,664 | 328 | Vulcan Materials Co. | 18,463 | 2,232 | ||
United Therapeutics Corp.(Æ) | 3,793 | 477 | Watsco, Inc. | 4,901 | 680 | ||
US Physical Therapy, Inc. | 26,966 | 1,769 | WR Grace & Co. | 2,986 | 208 | ||
Veeva Systems, Inc. Class A(Æ) | 6,119 | 328 | 32,030 | ||||
VWR Corp.(Æ) | 41,912 | 1,184 | |||||
WellCare Health Plans, Inc.(Æ) | 22,405 | 3,437 | Producer Durables - 15.8% | ||||
Zimmer Biomet Holdings, Inc. | 3,762 | 450 | ACCO Brands Corp.(Æ) | 28,415 | 405 | ||
46,983 | Advanced Energy Industries, Inc.(Æ) | 14,137 | 1,043 | ||||
Advisory Board Co. (The)(Æ) | 17,311 | 885 | |||||
Materials and Processing - 6.7% | AGCO Corp. | 664 | 42 | ||||
A Schulman, Inc. | 8,675 | 275 | Air Transport Services Group, Inc.(Æ) | 802 | 15 | ||
AAON, Inc. | 11,226 | 411 | Aircastle, Ltd. | 8,190 | 193 | ||
Acuity Brands, Inc. | 11,439 | 2,014 | Alaska Air Group, Inc. | 633 | 54 | ||
Albemarle Corp. | 5,575 | 607 | Allegiant Travel Co. Class A | 1,795 | 261 | ||
Armstrong Flooring, Inc.(Æ) | 23,532 | 452 | Allison Transmission Holdings, Inc. Class A | 31,969 | 1,237 | ||
Ashland Global Holdings, Inc. | 2,458 | 304 | Altra Industrial Motion Corp. | 28,626 | 1,264 | ||
Balchem Corp. | 25,631 | 2,080 | AO Smith Corp. | 22,536 | 1,214 | ||
Ball Corp. | 5,457 | 420 | Applied Industrial Technologies, Inc. | 4,000 | 256 | ||
Belden, Inc. | 3,675 | 256 | ArcBest Corp. | 30,415 | 804 |
See accompanying notes which are an integral part of the financial statements.
252 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Atlas Air Worldwide Holdings, Inc.(Æ) | 14,779 | 857 | NV5 Global, Inc.(Æ) | 27,189 | 1,052 | ||
Babcock & Wilcox Co. (The) Class W(Æ) | 8,957 | 440 | On Assignment, Inc.(Æ) | 6,002 | 311 | ||
Barnes Group, Inc. | 28,739 | 1,580 | Orbital ATK, Inc. | 4,746 | 470 | ||
Booz Allen Hamilton Holding Corp. Class A | 9,028 | 324 | Oshkosh Corp. | 2,398 | 166 | ||
Brady Corp. Class A | 48,416 | 1,886 | OSI Systems, Inc.(Æ) | 7,705 | 596 | ||
Briggs & Stratton Corp. | 56,726 | 1,418 | Proto Labs, Inc.(Æ)(Ñ) | 8,132 | 472 | ||
Brink's Co. (The) | 1,241 | 76 | Robert Half International, Inc. | 4,436 | 204 | ||
CAI International, Inc.(Æ) | 15,375 | 317 | Rollins, Inc. | 817 | 32 | ||
Carlisle Cos., Inc. | 3,258 | 330 | Rush Enterprises, Inc. Class A(Æ) | 35,594 | 1,344 | ||
CIRCOR International, Inc. | 19,937 | 1,330 | Saia, Inc.(Æ) | 28,441 | 1,369 | ||
Commercial Vehicle Group, Inc.(Æ) | 61,001 | 542 | SkyWest, Inc. | 8,678 | 323 | ||
Convergys Corp. | 879 | 20 | Snap-on, Inc. | 203 | 34 | ||
CoStar Group, Inc.(Æ) | 9,656 | 2,326 | Spirit AeroSystems Holdings, Inc. Class A | 4,399 | 251 | ||
Crane Co. | 6,145 | 491 | Standex International Corp. | 8,646 | 812 | ||
Deluxe Corp. | 3,172 | 228 | Sykes Enterprises, Inc.(Æ) | 804 | 24 | ||
Echo Global Logistics, Inc.(Æ) | 75,395 | 1,414 | Team, Inc.(Æ) | 34,736 | 934 | ||
Electronics For Imaging, Inc.(Æ) | 4,867 | 223 | Terex Corp. | 4,352 | 152 | ||
EnPro Industries, Inc. | 15,602 | 1,102 | Tetra Tech, Inc. | 4,369 | 192 | ||
ESCO Technologies, Inc. | 40,946 | 2,410 | Textron, Inc. | 7,997 | 373 | ||
ExlService Holdings, Inc.(Æ) | 4,894 | 234 | Thermon Group Holdings, Inc.(Æ) | 36,231 | 743 | ||
Exponent, Inc. | 446 | 27 | Toro Co. (The) | 7,664 | 498 | ||
Flir Systems, Inc. | 21,187 | 778 | TriMas Corp.(Æ) | 41,836 | 960 | ||
Flowserve Corp. | 15,683 | 798 | Trimble Navigation, Ltd.(Æ) | 47,833 | 1,695 | ||
Forward Air Corp. | 3,832 | 204 | Triumph Group, Inc.(Ñ) | 43,519 | 1,140 | ||
Franklin Electric Co., Inc. | 24,410 | 1,003 | TrueBlue, Inc.(Æ) | 47,635 | 1,303 | ||
FTI Consulting, Inc.(Æ) | 11,263 | 390 | UniFirst Corp. | 1,948 | 271 | ||
Generac Holdings, Inc.(Æ) | 19,675 | 692 | United Rentals, Inc.(Æ) | 12,333 | 1,352 | ||
General Cable Corp. | 59,512 | 1,071 | Wabtec Corp.(Ñ) | 17,434 | 1,463 | ||
Genesee & Wyoming, Inc. Class A(Æ) | 32,892 | 2,229 | WageWorks, Inc.(Æ) | 34,187 | 2,523 | ||
Genpact, Ltd. | 58,395 | 1,426 | Welbilt, Inc.(Æ) | 25,298 | 519 | ||
Graco, Inc. | 1,457 | 157 | Wesco Aircraft Holdings, Inc.(Æ) | 23,570 | 286 | ||
Granite Construction, Inc. | 4,810 | 254 | Zebra Technologies Corp. Class A(Æ) | 7,984 | 753 | ||
Greenbrier Cos., Inc.(Ñ) | 24,147 | 1,049 | 74,977 | ||||
Hawaiian Holdings, Inc.(Æ) | 7,085 | 385 | |||||
Healthcare Services Group, Inc. | 68,828 | 3,160 | Technology - 13.3% | ||||
HEICO Corp. | 17,673 | 1,256 | Acacia Research Corp.(Æ) | 28,804 | 157 | ||
Herman Miller, Inc. | 26,789 | 887 | Acxiom Corp.(Æ) | 30,359 | 877 | ||
Hertz Global Holdings, Inc. Class W(Æ) | 148 | 7 | Advanced Micro Devices, Inc.(Æ) | 8,044 | 107 | ||
HNI Corp. | 4,654 | 218 | Akamai Technologies, Inc.(Æ) | 14,209 | 866 | ||
Insperity, Inc. | 588 | 54 | Anixter International, Inc.(Æ) | 5,435 | 443 | ||
Integrated Electrical Services, Inc.(Æ) | 900 | 18 | ARC Document Solutions, Inc.(Æ) | 75,472 | 278 | ||
International Seaways, Inc.(Æ) | 6,537 | 126 | Avid Technology, Inc.(Æ) | 288,755 | 1,618 | ||
Kansas City Southern | 1,553 | 140 | Avnet, Inc. | 5,180 | 200 | ||
Kennametal, Inc. | 14,163 | 589 | Bottomline Technologies de, Inc.(Æ) | 40,775 | 950 | ||
Keysight Technologies, Inc.(Æ) | 16,722 | 626 | CA, Inc. | 62,092 | 2,038 | ||
Kirby Corp.(Æ) | 14,520 | 1,025 | CACI International, Inc. Class A(Æ) | 15,114 | 1,783 | ||
Knight Transportation, Inc. | 9,433 | 324 | Callidus Software, Inc.(Æ) | 62,851 | 1,323 | ||
Knoll, Inc. | 59,276 | 1,420 | Carbonite, Inc.(Æ) | 26,948 | 582 | ||
Korn/Ferry International | 25,502 | 826 | Cardtronics PLC Class A(Æ) | 38,257 | 1,591 | ||
Littelfuse, Inc. | 2,549 | 393 | Cavium, Inc.(Æ) | 32,366 | 2,228 | ||
LSC Communications, Inc. | 17,716 | 458 | comScore, Inc.(Æ) | 141 | 4 | ||
Manitowoc Co., Inc. (The)(Æ) | 7,453 | 45 | Cypress Semiconductor Corp. | 39,823 | 558 | ||
Matson, Inc. | 1,614 | 51 | Diodes, Inc.(Æ) | 27,037 | 632 | ||
MAXIMUS, Inc. | 45,438 | 2,771 | Dolby Laboratories, Inc. Class A | 9,104 | 480 | ||
Middleby Corp.(Æ) | 6,648 | 905 | DST Systems, Inc. | 394 | 49 | ||
MSC Industrial Direct Co., Inc. Class A | 9,223 | 826 | Ellie Mae, Inc.(Æ) | 12,400 | 1,262 | ||
Navigant Consulting, Inc.(Æ) | 8,155 | 195 | Entegris, Inc.(Æ) | 73,831 | 1,831 | ||
Nordson Corp. | 2,847 | 356 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 253
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) or | Value | Amount ($) or | Value | ||||||||
Shares | $ | Shares | $ | ||||||||
Envestnet, Inc.(Æ) | 35,996 | 1,253 | NorthWestern Corp. | 23,399 | 1,399 | ||||||
EPAM Systems, Inc.(Æ) | 15,446 | 1,189 | Pinnacle West Capital Corp. | 15,748 | 1,340 | ||||||
FormFactor, Inc.(Æ) | 114,373 | 1,270 | Portland General Electric Co. | 13,306 | 603 | ||||||
Fortinet, Inc.(Æ) | 30,881 | 1,204 | Southwest Gas Holdings, Inc. | 1,313 | 110 | ||||||
GoDaddy, Inc. Class A(Æ)(Ñ) | 24,884 | 969 | US Cellular Corp.(Æ) | 11,288 | 442 | ||||||
GrubHub, Inc.(Æ) | 18,303 | 787 | Vectren Corp. | 30,824 | 1,832 | ||||||
Guidewire Software, Inc.(Æ) | 25,423 | 1,563 | Westar Energy, Inc. Class A | 18,698 | 973 | ||||||
Harmonic, Inc.(Æ) | 166,107 | 963 | 15,504 | ||||||||
Integrated Device Technology, Inc.(Æ) | 100,966 | 2,422 | |||||||||
InterDigital, Inc. | 1,583 | 142 | Total Common Stocks | ||||||||
IPG Photonics Corp.(Æ) | 1,991 | 252 | |||||||||
Jabil Circuit, Inc. | 6,244 | 181 | (cost $297,110) | 438,451 | |||||||
Liberty Expedia Holdings, Inc. Class A(Æ) | 8,586 | 415 | |||||||||
Liberty Interactive Corp.(Æ) | 22,060 | 1,188 | Short-Term Investments - 6.8% | ||||||||
LogMeIn, Inc. | 12,025 | 1,359 | U.S. Cash Management Fund | 32,197,191 | (8) | 32,204 | |||||
MACOM Technology Solutions Holdings, | Total Short-Term Investments | ||||||||||
Inc.(Æ) | 43,471 | 2,125 | (cost $32,202) | 32,204 | |||||||
Manhattan Associates, Inc.(Æ) | 5,813 | 271 | |||||||||
ManTech International Corp. Class A | 83,241 | 2,955 | Other Securities - 6.7% | ||||||||
Mellanox Technologies, Ltd.(Æ)(Ñ) | 9,000 | 425 | U.S. Cash Collateral Fund(×) | 31,899,171 | (8) | 31,899 | |||||
Monolithic Power Systems, Inc. | 12,574 | 1,151 | Total Other Securities | ||||||||
NETGEAR, Inc.(Æ) | 4,059 | 191 | (cost $31,899) | 31,899 | |||||||
Oclaro, Inc.(Æ)(Ñ) | 7,551 | 60 | |||||||||
ON Semiconductor Corp.(Æ) | 9,500 | 135 | |||||||||
Open Text Corp. | 11,968 | 415 | Total Investments 105.7% | ||||||||
Plexus Corp.(Æ) | 57,466 | 2,988 | (identified cost $361,211) | 502,554 | |||||||
Progress Software Corp. | 68,263 | 2,029 | |||||||||
PTC, Inc.(Æ) | 63,500 | 3,432 | Other Assets and Liabilities, Net | ||||||||
Qorvo, Inc.(Æ) | 3,050 | 208 | - | (5.7%) | (27,128 | ) | |||||
Qualys, Inc.(Æ) | 31,152 | 1,196 | Net Assets - 100.0% | 475,426 | |||||||
Rambus, Inc.(Æ) | 18,176 | 228 | |||||||||
Rogers Corp.(Æ) | 8,570 | 882 | |||||||||
Sanmina Corp.(Æ) | 3,534 | 132 | |||||||||
Skyworks Solutions, Inc. | 2,464 | 246 | |||||||||
Symantec Corp. | 8,246 | 261 | |||||||||
Syntel, Inc. | 4,359 | 77 | |||||||||
Take-Two Interactive Software, Inc.(Æ) | 28,421 | 1,786 | |||||||||
TrueCar, Inc.(Æ)(Ñ) | 32,330 | 566 | |||||||||
Tyler Technologies, Inc.(Æ) | 9,589 | 1,569 | |||||||||
Ubiquiti Networks, Inc.(Æ)(Ñ) | 6,188 | 319 | |||||||||
Ultimate Software Group, Inc.(Æ) | 7,348 | 1,489 | |||||||||
VeriFone Systems, Inc.(Æ) | 104,957 | 1,946 | |||||||||
Virtusa Corp.(Æ) | 27,802 | 861 | |||||||||
Vocera Communications, Inc.(Æ) | 6,766 | 172 | |||||||||
63,129 | |||||||||||
Utilities - 3.2% | |||||||||||
8x8, Inc.(Æ) | 74,717 | 1,087 | |||||||||
ATN International, Inc. | 2,669 | 185 | |||||||||
CMS Energy Corp. | 58,037 | 2,635 | |||||||||
Cogent Communications Holdings, Inc. | 20,249 | 911 | |||||||||
El Paso Electric Co. | 26,483 | 1,367 | |||||||||
Evolution Petroleum Corp. | 55,273 | 442 | |||||||||
Fairmount Santrol Holdings, Inc.(Æ)(Ñ) | 42,623 | 220 | |||||||||
FairPoint Communications, Inc.(Æ) | 10,893 | 186 | |||||||||
Hawaiian Electric Industries, Inc. | 19,138 | 641 | |||||||||
National Fuel Gas Co. | 20,426 | 1,131 |
See accompanying notes which are an integral part of the financial statements.
254 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||||||||||||
Amounts in thousands (except contract amounts) | |||||||||||||||||
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||||||||||
Contracts | Amount | Date | $ | ||||||||||||||
Long Positions | |||||||||||||||||
S&P Mid 400 E-Mini Index Futures | 132 | USD | 22,836 | 06/17 | 383 | ||||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 383 | ||||||||||||||||
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Consumer Discretionary | $ | 58,539 | $ | — | $ | — | $ | — | $ | 58,539 | 12.3 | ||||||
Consumer Staples | 13,220 | — | 5 | — | 13,225 | 2.8 | |||||||||||
Energy | 17,683 | — | — | — | 17,683 | 3.7 | |||||||||||
Financial Services | 116,381 | — | — | — | 116,381 | 24.5 | |||||||||||
Health Care | 46,977 | — | 6 | — | 46,983 | 9.9 | |||||||||||
Materials and Processing | 32,030 | — | — | — | 32,030 | 6.7 | |||||||||||
Producer Durables | 74,977 | — | — | — | 74,977 | 15.8 | |||||||||||
Technology | 63,129 | — | — | — | 63,129 | 13.3 | |||||||||||
Utilities | 15,504 | — | — | — | 15,504 | 3.2 | |||||||||||
Short-Term Investments | — | — | — | 32,204 | 32,204 | 6.8 | |||||||||||
Other Securities | — | — | — | 31,899 | 31,899 | 6.7 | |||||||||||
Total Investments | 438,440 | — | 11 | 64,103 | 502,554 | 105.7 | |||||||||||
Other Assets and Liabilities, Net | (5.7 | ) | |||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 383 | — | — | — | 383 | 0.1 | |||||||||||
Total Other Financial Instruments* | $ | 383 | $ | — | $ | — | $ | — | $ | 383 |
* Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 255
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 383 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 1,888 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 1,096 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
256 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||
Gross | Net Amounts | |||||||
Amounts | of Assets | |||||||
Gross | Offset in the | Presented in | ||||||
Amounts of | Statement of | the Statement | ||||||
Recognized | Assets and | of Assets and | ||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||
Securities on Loan* | Investments, at fair value | $ | 30,952 | $ | — | $ | 30,952 | |
Total Financial and Derivative Assets | 30,952 | — | 30,952 | |||||
Financial and Derivative Assets not subject to a netting agreement | — | — | — | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 30,952 | $ | — | $ | 30,952 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Assets | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||
Barclays | $ | 983 | $ | — | $ | 983 | $ | — | ||
Citigroup | 3,883 | — | 3,883 | — | ||||||
Credit Suisse | 1,448 | — | 1,448 | — | ||||||
Deutsche Bank | 622 | — | 622 | — | ||||||
Goldman Sachs | 7,562 | — | 7,562 | — | ||||||
HSBC | 2,376 | — | 2,376 | — | ||||||
JPMorgan Chase | 1,228 | — | 1,228 | — | ||||||
Merrill Lynch | 12,447 | — | 12,447 | — | ||||||
Societe Generale | 403 | — | 403 | — | ||||||
Total | $ | 30,952 | $ | — | $ | 30,952 | $ | — |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 257
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 234 | $ | — | $ | 234 | ||
Total Financial and Derivative Liabilities | 234 | — | 234 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (234) | — | (234 | ) | |||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — | $ | — |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
258 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 361,211 |
Investments, at fair value(*)(>) | 502,554 | |
Cash (restricted)(a) | 1,045 | |
Receivables: | ||
Dividends and interest | 129 | |
Dividends from affiliated funds | 25 | |
Investments sold | 8,711 | |
Fund shares sold | 611 | |
Prepaid expenses | 5 | |
Total assets | 513,080 | |
Liabilities | ||
Payables: | ||
Investments purchased | 4,526 | |
Fund shares redeemed | 394 | |
Accrued fees to affiliates | 465 | |
Other accrued expenses | 136 | |
Variation margin on futures contracts | 234 | |
Payable upon return of securities loaned | 31,899 | |
Total liabilities | 37,654 | |
Net Assets | $ | 475,426 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 259
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (311 | ) |
Accumulated net realized gain (loss) | 4,418 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 141,343 | ||
Futures contracts | 383 | ||
Shares of beneficial interest | 198 | ||
Additional paid-in capital | 329,395 | ||
Net Assets | $ | 475,426 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 23.22 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 24.64 | |
Class A — Net assets | $ | 12,264,727 | |
Class A — Shares outstanding ($.01 par value) | 528,171 | ||
Net asset value per share: Class C(#) | $ | 20.03 | |
Class C — Net assets | $ | 13,119,364 | |
Class C — Shares outstanding ($.01 par value) | 654,975 | ||
Net asset value per share: Class E(#) | $ | 23.27 | |
Class E — Net assets | $ | 699,792 | |
Class E — Shares outstanding ($.01 par value) | 30,072 | ||
Net asset value per share: Class S(#) | $ | 24.22 | |
Class S — Net assets | $ | 448,012,780 | |
Class S — Shares outstanding ($.01 par value) | 18,498,947 | ||
Net asset value per share: Class T(#) | $ | 24.23 | |
Class T — Net assets | $ | 1,329,622 | |
Class T — Shares outstanding ($.01 par value) | 54,882 | ||
Amounts in thousands | |||
(*) Securities on loan included in investments | $ | 30,952 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 64,103 | |
(a) Cash Collateral for Futures | $ | 1,045 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
260 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 2,507 | |
Dividends from affiliated funds | 107 | ||
Interest | 81 | ||
Securities lending income (net) | 29 | ||
Securities lending income from affiliated funds (net) | 82 | ||
Total investment income | 2,806 | ||
Expenses | |||
Advisory fees | 2,191 | ||
Administrative fees | 108 | ||
Custodian fees | 63 | ||
Distribution fees - Class A | 14 | ||
Distribution fees - Class C | 48 | ||
Transfer agent fees - Class A | 12 | ||
Transfer agent fees - Class C | 13 | ||
Transfer agent fees - Class E | 4 | ||
Transfer agent fees - Class S | 418 | ||
Transfer agent fees - Class T | —** | ||
Professional fees | 30 | ||
Registration fees | 36 | ||
Shareholder servicing fees - Class C | 16 | ||
Shareholder servicing fees - Class E | 5 | ||
Trustees’ fees | 6 | ||
Printing fees | 28 | ||
Miscellaneous | 10 | ||
Expenses before reductions | 3,002 | ||
Expense reductions | (122 | ) | |
Net expenses | 2,880 | ||
Net investment income (loss) | (74 | ) | |
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 9,058 | ||
Futures contracts | 1,888 | ||
Net realized gain (loss) | 10,946 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 49,923 | ||
Futures contracts | 1,096 | ||
Net change in unrealized appreciation (depreciation) | 51,019 | ||
Net realized and unrealized gain (loss) | 61,965 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 61,891 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 261
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | (74 | ) | $ | 136 | |
Net realized gain (loss) | 10,946 | (5,323 | ) | |||
Net change in unrealized appreciation (depreciation) | 51,019 | 7,478 | ||||
Net increase (decrease) in net assets from operations | 61,891 | 2,291 | ||||
Distributions | ||||||
From net realized gain | ||||||
Class A | — | (49 | ) | |||
Class C | — | (73 | ) | |||
Class E | — | (41 | ) | |||
Class S | — | (1,714 | ) | |||
Net decrease in net assets from distributions | — | (1,877 | ) | |||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 15,095 | 28,558 | ||||
Total Net Increase (Decrease) in Net Assets | 76,986 | 28,972 | ||||
Net Assets | ||||||
Beginning of period | 398,440 | 369,468 | ||||
End of period | $ | 475,426 | $ | 398,440 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (311 | ) | $ | (237 | ) |
See accompanying notes which are an integral part of the financial statements.
262 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 85 | $ | 1,917 | 175 | $ | 3,409 | ||||||
Proceeds from reinvestment of distributions | — | — | 2 | 49 | ||||||||
Payments for shares redeemed | (43 | ) | (977 | ) | (145 | ) | (2,889 | ) | ||||
Net increase (decrease) | 42 | 940 | 32 | 569 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 52 | 994 | 97 | 1,666 | ||||||||
Proceeds from reinvestment of distributions | — | — | 4 | 72 | ||||||||
Payments for shares redeemed | (69 | ) | (1,331 | ) | (130 | ) | (2,206 | ) | ||||
Net increase (decrease) | (17 | ) | (337 | ) | (29 | ) | (468 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 17 | 363 | 74 | 1,472 | ||||||||
Proceeds from reinvestment of distributions | — | — | 2 | 41 | ||||||||
Payments for shares redeemed | (398 | ) | (8,967 | ) | (55 | ) | (1,100 | ) | ||||
Net increase (decrease) | (381 | ) | (8,604 | ) | 21 | 413 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 2,843 | 66,393 | 5,366 | 109,263 | ||||||||
Proceeds from reinvestment of distributions | — | — | 83 | 1,673 | ||||||||
Payments for shares redeemed | (1,912 | ) | (44,602 | ) | (4,044 | ) | (82,892 | ) | ||||
Net increase (decrease) | 931 | 21,791 | 1,405 | 28,044 | ||||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 55 | 1,306 | — | — | ||||||||
Payments for shares redeemed | —** | (1 | ) | — | — | |||||||
Net increase (decrease) | 55 | 1,305 | — | — | ||||||||
Total increase (decrease) | 630 | $ | 15,095 | 1,429 | $ | 28,558 |
** Less than 500 shares.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 263
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||||
Class A | ||||||||||||||||||
April 30, 2017* | 20.15 | (.03 | ) | 3.10 | 3.07 | — | — | |||||||||||
October 31, 2016 | 20.26 | (.04 | ) | .03 | (.01 | ) | — | (.10 | ) | |||||||||
October 31, 2015 | 21.65 | (.10 | ) | (.04 | ) | (.14 | ) | — | (1.25 | ) | ||||||||
October 31, 2014 | 21.99 | (.14 | ) | 1.56 | 1.42 | —(f) | (1.76 | ) | ||||||||||
October 31, 2013 | 16.00 | (.08 | ) | 6.09 | 6.01 | —(f) | (.02 | ) | ||||||||||
October 31, 2012 | 14.47 | (.05 | ) | 1.58 | 1.53 | — | — | |||||||||||
Class C | ||||||||||||||||||
April 30, 2017* | 17.44 | (.10 | ) | 2.69 | 2.59 | — | — | |||||||||||
October 31, 2016 | 17.68 | (.16 | ) | .02 | (.14 | ) | — | (.10 | ) | |||||||||
October 31, 2015 | 19.18 | (.22 | ) | (.03 | ) | (.25 | ) | — | (1.25 | ) | ||||||||
October 31, 2014 | 19.81 | (.26 | ) | 1.39 | 1.13 | —(f) | (1.76 | ) | ||||||||||
October 31, 2013 | 14.51 | (.18 | ) | 5.50 | 5.32 | — | (.02 | ) | ||||||||||
October 31, 2012 | 13.23 | (.15 | ) | 1.43 | 1.28 | — | — | |||||||||||
Class E | ||||||||||||||||||
April 30, 2017* | 20.19 | (.02 | ) | 3.10 | 3.08 | — | — | |||||||||||
October 31, 2016 | 20.29 | (.03 | ) | .03 | — | — | (.10 | ) | ||||||||||
October 31, 2015 | 21.68 | (.10 | ) | (.04 | ) | (.14 | ) | — | (1.25 | ) | ||||||||
October 31, 2014 | 22.01 | (.14 | ) | 1.57 | 1.43 | —(f) | (1.76 | ) | ||||||||||
October 31, 2013 | 16.01 | (.06 | ) | 6.08 | 6.02 | — | (.02 | ) | ||||||||||
October 31, 2012 | 14.48 | (.05 | ) | 1.58 | 1.53 | — | — | |||||||||||
Class S | ||||||||||||||||||
April 30, 2017* | 20.98 | —(f) | 3.24 | 3.24 | — | — | ||||||||||||
October 31, 2016 | 21.03 | .02 | .03 | .05 | — | (.10 | ) | |||||||||||
October 31, 2015 | 22.38 | (.05 | ) | (.05 | ) | (.10 | ) | — | (1.25 | ) | ||||||||
October 31, 2014 | 22.61 | (.09 | ) | 1.62 | 1.53 | —(f) | (1.76 | ) | ||||||||||
October 31, 2013 | 16.43 | (.02 | ) | 6.25 | 6.23 | (.03 | ) | (.02 | ) | |||||||||
October 31, 2012 | 14.83 | (.01 | ) | 1.61 | 1.60 | — | — | |||||||||||
Class T | ||||||||||||||||||
April 30, 2017(10) | 23.84 | (.03 | ) | .42 | .39 | — | — | |||||||||||
See accompanying notes which are an integral part of the financial statements.
264 Tax-Managed U.S. Mid & Small Cap Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | ||||||||||
— | 23.22 | 15.24 | 12,265 | 1.55 | 1.53 | (.28 | ) | 24 | ||||||||||
(.10 | ) | 20.15 | (.01 | ) | 9,794 | 1.56 | 1.52 | (.20 | ) | 70 | ||||||||
(1.25 | ) | 20.26 | (.77 | ) | 9,189 | 1.57 | 1.53 | (.49 | ) | 65 | ||||||||
(1.76 | ) | 21.65 | 6.73 | 6,489 | 1.58 | 1.53 | (.69 | ) | 80 | |||||||||
(.02 | ) | 21.99 | 37.62 | 3,256 | 1.56 | 1.53 | (.44 | ) | 46 | |||||||||
— | 16.00 | 10.57 | 1,426 | 1.58 | 1.53 | (.34 | ) | 48 | ||||||||||
— | 20.03 | 14.85 | 13,119 | 2.30 | 2.25 | (.99 | ) | 24 | ||||||||||
(.10 | ) | 17.44 | (.75 | ) | 11,720 | 2.32 | 2.24 | (.92 | ) | 70 | ||||||||
(1.25 | ) | 17.68 | (1.48 | ) | 12,392 | 2.32 | 2.25 | (1.21 | ) | 65 | ||||||||
(1.76 | ) | 19.18 | 5.95 | 11,555 | 2.32 | 2.25 | (1.39 | ) | 80 | |||||||||
(.02 | ) | 19.81 | 36.71 | 11,218 | 2.31 | 2.25 | (1.11 | ) | 46 | |||||||||
— | 14.51 | 9.68 | 7,083 | 2.34 | 2.25 | (1.06 | ) | 48 | ||||||||||
— | 23.27 | 15.26 | 700 | 1.55 | 1.49 | (.18 | ) | 24 | ||||||||||
(.10 | ) | 20.19 | .04 | 8,301 | 1.57 | 1.49 | (.17 | ) | 70 | |||||||||
(1.25 | ) | 20.29 | (.77 | ) | 7,918 | 1.57 | 1.50 | (.46 | ) | 65 | ||||||||
(1.76 | ) | 21.68 | 6.77 | 6,383 | 1.57 | 1.50 | (.65 | ) | 80 | |||||||||
(.02 | ) | 22.01 | 37.64 | 5,665 | 1.56 | 1.50 | (.36 | ) | 46 | |||||||||
— | 16.01 | 10.57 | 3,898 | 1.59 | 1.50 | (.31 | ) | 48 | ||||||||||
— | 24.22 | 15.44 | 448,012 | 1.30 | 1.25 | .01 | 24 | |||||||||||
(.10 | ) | 20.98 | .28 | 368,625 | 1.32 | 1.24 | .08 | 70 | ||||||||||
(1.25 | ) | 21.03 | (.55 | ) | 339,969 | 1.32 | 1.25 | (.21 | ) | 65 | ||||||||
(1.76 | ) | 22.38 | 7.01 | 297,498 | 1.32 | 1.25 | (.40 | ) | 80 | |||||||||
(.05 | ) | 22.61 | 38.02 | 233,887 | 1.31 | 1.25 | (.11 | ) | 46 | |||||||||
— | 16.43 | 10.79 | 152,403 | 1.34 | 1.25 | (.06 | ) | 48 | ||||||||||
— | 24.23 | 1.64 | 1,330 | 1.30 | 1.15 | (1.02 | ) | 24 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed U.S. Mid & Small Cap Fund 265
Russell Investment Company
Tax-Managed U.S. Mid & Small Cap Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 373,155 |
Administration fees | 18,460 | |
Distribution fees | 10,623 | |
Shareholder servicing fees | 2,855 | |
Transfer agent fees | 57,612 | |
Trustee fees | 1,877 | |
$ | 464,582 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||||
affiliated company are as follows: | |||||||||||||||||||
Fair Value, | Change in | ||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||||
U.S. Cash Collateral Fund | $ | 20,724 | $ | 69,143 | $ | 57,968 | $ | — | $ | — | $ | 31,899 | $ | 82 | $ | — | |||
U.S. Cash Management Fund | $ | 17,619 | 50,333 | 35,747 | — | (1) | 32,204 | 107 | — | ||||||||||
$ | 38,343 | $ | 119,476 | $ | 93,715 | $ | — | $ | (1) | $ | 64,103 | $ | 189 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 361,974,090 | |||
Unrealized Appreciation | $ | 143,638,516 | |||
Unrealized Depreciation | (3,058,534 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 140,579,982 |
See accompanying notes which are an integral part of the financial statements.
266 Tax-Managed U.S. Mid & Small Cap Fund
Russell Investment Company
Tax-Managed International Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,109.30 | $ | 1,018.15 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 7.01 | $ | 6.71 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.34% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,106.20 | $ | 1,014.43 | |
Expenses Paid During Period* | $ | 10.91 | $ | 10.44 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 2.09% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,110.20 | $ | 1,018.25 | |
of other funds. | Expenses Paid During Period* | $ | 6.91 | $ | 6.61 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.32% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Tax-Managed International Equity Fund 267
Russell Investment Company
Tax-Managed International Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class S | Performance | expenses) | ||
Beginning Account Value | ||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,111.50 | $ | 1,019.39 |
Expenses Paid During Period* | $ | 5.71 | $ | 5.46 |
* Expenses are equal to the Fund's annualized expense ratio of 1.09%
(representing the six month period annualized), multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half
year period). May reflect amounts waived and/or reimbursed. Without any
waivers and/or reimbursements, expenses would have been higher.
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class T | Performance | expenses) | ||
Beginning Account Value | ||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,025.60 | $ | 1,019.89 |
Expenses Paid During Period* | $ | 1.24 | $ | 4.96 |
* Expenses are equal to the Fund's annualized expense ratio of 0.99%
(representing the 45-day period annualized), multiplied by the average
account value over the period, multiplied by 45/365 (to reflect the period since
commencement of operations). May reflect amounts waived and/or reimbursed.
Without any waivers and/or reimbursements, expenses would have been higher.
Hypothetical expenses are equal to the Fund’s annualized expense ratio of
0.99% (representing the six-month period annualized), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
on-half year period).
268 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Common Stocks - 90.9% | BM&FBovespa SA - Bolsa de Valores | ||||||||||
Argentina - 0.3% | Mercadorias e Futuros(Æ) | 212,488 | 1,273 | ||||||||
Cresud SACIF y A - ADR(Æ) | 18,279 | 384 | Braskem SA - ADR | 42,926 | 925 | ||||||
IRSA Inversiones y Representaciones | BRF SA - ADR(Æ) | 50,514 | 628 | ||||||||
SA - ADR(Æ) | 14,144 | 357 | BTG Pactual Group(Æ) | 66,024 | 387 | ||||||
YPF SA - ADR | 83,435 | 2,155 | CCR SA | 211,873 | 1,182 | ||||||
2,896 | Centrais Eletricas Brasileiras SA | ||||||||||
- ADR(Æ) | 210,425 | 1,184 | |||||||||
Australia - 1.7% | Cia Brasileira de Distribuicao - ADR(Æ) | 35,925 | 810 | ||||||||
AGL Energy, Ltd. | 14,311 | 287 | Cia de Saneamento Basico do Estado de | ||||||||
ASX, Ltd. - ADR | 4,813 | 183 | Sao Paulo - ADR(Æ) | 196,944 | 1,812 | ||||||
Australia & New Zealand Banking | Cia de Saneamento de Minas | ||||||||||
Group, Ltd. - ADR | 97,646 | 2,390 | Gerais-COPASA(Æ) | 30,744 | 349 | ||||||
Bendigo & Adelaide Bank, Ltd. | 30,927 | 285 | Cosan SA Industria e Comercio | 88,699 | 1,037 | ||||||
BHP Billiton, Ltd. - ADR | 12,620 | 225 | Gerdau SA - ADR | 338,212 | 1,032 | ||||||
Commonwealth Bank of Australia - ADR | 64,613 | 4,225 | Hypermarcas SA | 58,722 | 556 | ||||||
CSL, Ltd. | 805 | 80 | Itau Unibanco Holding SA - ADR | 277,299 | 3,410 | ||||||
Fortescue Metals Group, Ltd. | 42,690 | 170 | JBS SA | 157,102 | 508 | ||||||
Goodman Group(ö) | 71,710 | 435 | Petroleo Brasileiro SA - ADR(Æ) | 241,207 | 2,173 | ||||||
GPT Group (The)(ö) | 104,066 | 408 | Rumo SA(Æ) | 659,422 | 1,814 | ||||||
Macquarie Group, Ltd. | 5,472 | 380 | Telefonica Brasil SA - ADR | 69,829 | 1,033 | ||||||
Medibank Pvt, Ltd. | 70,712 | 154 | TIM Participacoes SA - ADR | 115,135 | 1,855 | ||||||
Mirvac Group(ö) | 103,514 | 176 | Vale SA Class B - ADR | 28,083 | 241 | ||||||
National Australia Bank, Ltd. - ADR | 38,859 | 987 | 23,794 | ||||||||
QBE Insurance Group, Ltd. | 21,631 | 208 | |||||||||
Rio Tinto, Ltd. - ADR | 20,684 | 935 | Canada - 3.1% | ||||||||
Scentre Group(ö) | 137,481 | 444 | Bank of Montreal | 10,329 | 731 | ||||||
Stockland(ö) | 29,894 | 108 | Bank of Nova Scotia (The) | 23,885 | 1,328 | ||||||
Suncorp Group, Ltd. | 13,039 | 134 | BCE, Inc. | 6,228 | 284 | ||||||
Telstra Corp., Ltd. | 69,272 | 219 | Brookfield Asset Management, Inc. | ||||||||
Wesfarmers, Ltd.(Æ) | 12,552 | 404 | Class A | 18,563 | 686 | ||||||
Westfield Corp.(ö) | 28,689 | 195 | Brookfield Real Estate Services, Inc. | 55,802 | 662 | ||||||
Westpac Banking Corp. | 47,189 | 1,236 | Canadian Imperial Bank of Commerce | 8,045 | 650 | ||||||
Woolworths, Ltd. | 22,445 | 452 | Canadian National Railway Co. | 40,730 | 2,943 | ||||||
14,720 | Canadian Natural Resources, Ltd. | 35,419 | 1,128 | ||||||||
Canadian Pacific Railway, Ltd. | 4,758 | 729 | |||||||||
Austria - 0.1% | Canadian Tire Corp., Ltd. Class A | 2,776 | 339 | ||||||||
Erste Group Bank AG | 13,419 | 479 | CCL Industries, Inc. Class B | 234 | 54 | ||||||
UNIQA Insurance Group AG | 49,228 | 411 | Cenovus Energy, Inc. | 44,253 | 441 | ||||||
890 | CGI Group, Inc. Class A(Æ) | 3,049 | 147 | ||||||||
Dollarama, Inc. | 2,149 | 188 | |||||||||
Belgium - 0.6% | Emera, Inc. | 10,097 | 349 | ||||||||
Ageas | 8,385 | 343 | Enbridge, Inc. | 2,946 | 122 | ||||||
Anheuser-Busch InBev SA | 18,673 | 2,111 | First Quantum Minerals, Ltd. | 111,974 | 1,067 | ||||||
Colruyt SA | 511 | 26 | Fortis, Inc. | 12,604 | 410 | ||||||
Elia System Operator SA | 5,531 | 293 | Great-West Lifeco, Inc. | 18,847 | 507 | ||||||
KBC Groep NV | 24,169 | 1,745 | Husky Energy, Inc.(Æ) | 29,864 | 345 | ||||||
Solvay SA | 2,575 | 327 | Industrial Alliance Insurance & | ||||||||
4,845 | Financial Services, Inc. | 8,194 | 346 | ||||||||
Intact Financial Corp. | 4,595 | 315 | |||||||||
Bermuda - 0.1% | Loblaw Cos., Ltd. | 2,231 | 125 | ||||||||
Credicorp, Ltd. | 1,426 | 219 | Magna International, Inc. Class A | 22,403 | 936 | ||||||
Hiscox, Ltd. | 24,694 | 363 | Manulife Financial Corp. | 17,564 | 308 | ||||||
Kunlun Energy Co., Ltd. | 286,000 | 258 | Metro, Inc. Class A | 4,660 | 160 | ||||||
840 | National Bank of Canada | 10,700 | 416 | ||||||||
Open Text Corp. | 11,610 | 403 | |||||||||
Brazil - 2.8% | Potash Corp. of Saskatchewan, Inc. | 106,553 | 1,797 | ||||||||
B2W Cia Digital(Æ) | 180,581 | 761 | Power Corp. of Canada | 14,238 | 330 | ||||||
Banco Bradesco SA - ADR | 78,099 | 824 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 269
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Power Financial Corp. | 5,192 | 132 | Geely Automobile Holdings, Ltd. | 1,160,000 | 1,557 | |||||
Restaurant Brands International, Inc. | 10,135 | 569 | Hengan International Group Co., Ltd. | 152,092 | 1,139 | |||||
RioCan Real Estate Investment Trust(ö) | 16,822 | 320 | Huaneng Renewables Corp., Ltd. Class | |||||||
Rogers Communications, Inc. Class B | 55,300 | 2,535 | H | 1,114,000 | 389 | |||||
Royal Bank of Canada - GDR | 20,589 | 1,410 | Industrial & Commercial Bank of China, | |||||||
SNC-Lavalin Group, Inc. | 7,651 | 308 | Ltd. Class H | 3,021,000 | 1,969 | |||||
Sun Life Financial, Inc. | 17,068 | 603 | JD.com, Inc. - ADR(Æ) | 11,089 | 389 | |||||
Toronto Dominion Bank | 31,046 | 1,461 | Lenovo Group, Ltd. | 3,612,000 | 2,310 | |||||
TransCanada Corp. | 18,850 | 875 | NetEase, Inc. - ADR | 3,688 | 979 | |||||
26,459 | New China Life Insurance Co., Ltd. | |||||||||
Class H | 195,600 | 966 | ||||||||
Cayman Islands - 1.4% | New Oriental Education & Technology | |||||||||
Baidu, Inc. - ADR(Æ) | 9,585 | 1,728 | Group - ADR(Æ) | 25,859 | 1,669 | |||||
China Mengniu Dairy Co., Ltd. | 287,000 | 556 | PetroChina Co., Ltd. Class H | 820,000 | 577 | |||||
China State Construction International | PICC Property & Casualty Co., Ltd. | |||||||||
Holdings, Ltd. | 460,000 | 834 | Class H | 880,000 | 1,417 | |||||
CIFI Holdings Group Co., Ltd. | 2,374,000 | 857 | Ping An Insurance Group Co. of China, | |||||||
Li Ning Co., Ltd.(Æ) | 370,000 | 243 | Ltd. Class H | 26,000 | 146 | |||||
SINA Corp.(Æ) | 38,330 | 2,944 | Shanghai Pharmaceuticals Holding Co., | |||||||
Sunac China Holdings, Ltd. | 122,866 | 160 | Ltd. Class H | 442,500 | 1,172 | |||||
Tencent Holdings, Ltd. | 140,265 | 4,387 | Sinopec Shanghai Petrochemical Co., | |||||||
Uni-President China Holdings, Ltd. | 818,715 | 576 | Ltd. Class H | 2,299,136 | 1,286 | |||||
12,285 | Sohu.com, Inc.(Æ) | 30,851 | 1,197 | |||||||
Tingyi Cayman Islands Holding Corp. | 298,000 | 383 | ||||||||
Chile - 0.2% | Tsingtao Brewery Co., Ltd. Class H | 100,000 | 451 | |||||||
Banco de Credito e Inversiones | 1 | — | Weibo Corp. - ADR(Æ) | 15,355 | 858 | |||||
Cia Cervecerias Unidas SA - ADR | 23,976 | 618 | Zhejiang Expressway Co., Ltd. Class H | 781 | 1 | |||||
Sociedad Quimica y Minera de Chile | 40,247 | |||||||||
SA - ADR | 20,596 | 732 | ||||||||
1,350 | Curacao - 0.0% | |||||||||
HAL Trust | 320 | 64 | ||||||||
China - 4.7% | ||||||||||
Agricultural Bank of China, Ltd. Class H | 3,468,000 | 1,598 | Denmark - 1.2% | |||||||
Alibaba Group Holding, Ltd. - ADR(Æ) | 43,625 | 5,040 | Carlsberg A/S Class B | 4,284 | 427 | |||||
Angang Steel Co., Ltd. Class H | 1,666,000 | 1,118 | Chr Hansen Holding A/S | 30,906 | 2,081 | |||||
Bank of China, Ltd. Class H | 3,302,437 | 1,597 | Danske Bank A/S | 72,032 | 2,616 | |||||
China CITIC Bank Corp., Ltd. Class H | 1,659,000 | 1,052 | DSV A/S | 5,558 | 310 | |||||
China Communications Services Corp., | GN Store Nord A/S | 6,464 | 168 | |||||||
Ltd. Class H | 784,000 | 447 | Jyske Bank A/S | 8,525 | 455 | |||||
China Construction Bank Corp. Class H | 1,006,000 | 816 | Novo Nordisk A/S Class B | 67,251 | 2,617 | |||||
China Everbright International, Ltd. | 428,000 | 578 | Scandinavian Tobacco Group A/S(Þ) | 83,411 | 1,456 | |||||
China Minsheng Banking Corp., Ltd. | William Demant Holding A/S(Æ) | 6,818 | 156 | |||||||
Class H | 121,500 | 119 | 10,286 | |||||||
China National Building Material Co., | ||||||||||
Ltd. Class H | 1,312,000 | 875 | Egypt - 0.1% | |||||||
China Petroleum & Chemical Corp. | Commercial International Bank Egypt | |||||||||
Class H | 892,000 | 725 | SAE - GDR | 213,885 | 914 | |||||
China Railway Group, Ltd. Class H | 469,193 | 397 | ||||||||
China Resources Land, Ltd. | 138,968 | 385 | Finland - 0.2% | |||||||
China Shenhua Energy Co., Ltd. Class H | 701,500 | 1,634 | Cargotec OYJ Class B | 5,952 | 355 | |||||
China Telecom Corp., Ltd. Class H | 863,654 | 423 | Elisa OYJ Class A | 90 | 3 | |||||
Chongqing Changan Automobile Co., | Fortum OYJ | 5,691 | 83 | |||||||
Ltd. Class B | 29 | — | Kone OYJ Class B | 2,181 | 100 | |||||
Chongqing Rural Commercial Bank Co., | Neste OYJ | 1,217 | 50 | |||||||
Ltd. Class H | 755,059 | 519 | Orion OYJ Class B | 786 | 45 | |||||
CITIC Securities Co., Ltd. Class H | 577,000 | 1,209 | Sampo OYJ Class A | 8,352 | 400 | |||||
Ctrip.com International, Ltd. - ADR(Æ) | 47,324 | 2,391 | Tikkurila OYJ | 27,069 | 537 | |||||
Dongfeng Motor Group Co., Ltd. Class H | 446,804 | 469 |
See accompanying notes which are an integral part of the financial statements.
270 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
UPM-Kymmene OYJ | 22,207 | 586 | Deutsche Bank AG | 9,170 | 165 | ||||
2,159 | Deutsche Boerse AG | 38,791 | 3,797 | ||||||
Deutsche Post AG | 17,994 | 647 | |||||||
France - 7.2% | Deutsche Telekom AG | 34,053 | 597 | ||||||
Air Liquide SA Class A | 7,055 | 850 | Deutsche Wohnen AG | 4,110 | 141 | ||||
Airbus Group SE | 5,064 | 409 | Freenet AG | 11,193 | 351 | ||||
Arkema SA | 1,765 | 187 | Fresenius Medical Care AG & Co. | 3,064 | 272 | ||||
AXA SA | 16,574 | 442 | Fresenius SE & Co. KGaA | 12,064 | 978 | ||||
BioMerieux | 2,113 | 422 | Hannover Rueck SE | 1,235 | 148 | ||||
BNP Paribas SA | 10,844 | 765 | HeidelbergCement AG | 24,430 | 2,262 | ||||
Bouygues SA - ADR | 78,741 | 3,309 | Henkel AG & Co. KGaA | 560 | 65 | ||||
Bureau Veritas SA | 74,596 | 1,728 | Infineon Technologies AG - ADR | 2,021 | 42 | ||||
Capgemini SA | 4,934 | 494 | Lanxess AG | 4,782 | 345 | ||||
Carrefour SA | 9,098 | 215 | LEG Immobilien AG(Æ) | 389 | 33 | ||||
Christian Dior SE | 2,234 | 614 | Linde AG | 2,213 | 398 | ||||
Cie de Saint-Gobain | 13,070 | 705 | MAN SE | 1,119 | 118 | ||||
Credit Agricole SA | 176,798 | 2,627 | Merck KGaA | 6,789 | 797 | ||||
Danone SA | 57,633 | 4,029 | Muenchener Rueckversicherungs- | ||||||
Dassault Systemes | 4,542 | 406 | Gesellschaft AG in Muenchen | 2,734 | 524 | ||||
Engie SA | 204,650 | 2,886 | Rational AG | 1,897 | 953 | ||||
Essilor International SA | 16,987 | 2,201 | SAP SE - ADR | 41,305 | 4,143 | ||||
Euler Hermes Group | 3,989 | 390 | Siemens AG | 30,683 | 4,398 | ||||
Faurecia | 43,725 | 2,135 | Software AG | 9,114 | 401 | ||||
Legrand SA - ADR | 2,086 | 135 | ThyssenKrupp AG - ADR | 9,794 | 233 | ||||
L'Oreal SA | 17,174 | 3,420 | Uniper SE | 1,361 | 22 | ||||
LVMH Moet Hennessy Louis Vuitton | Vonovia SE | 5,828 | 211 | ||||||
SE - ADR | 1,650 | 408 | 30,019 | ||||||
Mercialys SA(ö) | 7,185 | 140 | |||||||
Metropole Television SA | 17,093 | 389 | Greece - 0.2% | ||||||
Natixis SA | 131,573 | 915 | Eurobank Ergasias SA(Æ) | 988,831 | 792 | ||||
Orange SA - ADR | 12,888 | 200 | National Bank of Greece SA(Æ) | 2,000,080 | 620 | ||||
Pernod Ricard SA | 3,723 | 466 | 1,412 | ||||||
Publicis Groupe SA - ADR | 55,061 | 3,975 | |||||||
Renault SA | 2,030 | 189 | Hong Kong - 2.7% | ||||||
Safran SA | 33,647 | 2,785 | AIA Group, Ltd. | 79,600 | 551 | ||||
Sanofi - ADR | 93,408 | 8,823 | BOC Hong Kong Holdings, Ltd. | 67,500 | 278 | ||||
Schneider Electric SE | 49,351 | 3,897 | Brilliance China Automotive Holdings, | ||||||
SCOR SE - ADR | 11,860 | 469 | Ltd. | 866,000 | 1,449 | ||||
Societe Generale SA | 7,353 | 402 | Champion REIT(Æ)(ö) | 194,000 | 126 | ||||
Sodexo SA | 3,466 | 441 | Cheung Kong Infrastructure Holdings, | ||||||
Suez Environnement Co. | 25,425 | 418 | Ltd. | 17,000 | 149 | ||||
Teleperformance - GDR | 2,067 | 260 | Cheung Kong Property Holdings, Ltd. | 152,823 | 1,095 | ||||
Thales SA | 3,415 | 359 | China Everbright, Ltd. | 304,000 | 695 | ||||
Total SA | 77,264 | 3,960 | China Mobile, Ltd. - ADR | 66,901 | 3,568 | ||||
Unibail-Rodamco SE(ö) | 729 | 179 | China Unicom Hong Kong, Ltd. - ADR | 143,271 | 1,860 | ||||
Vallourec SA(Æ) | 206,007 | 1,317 | CK Hutchison Holdings, Ltd. | 285,529 | 3,563 | ||||
Vicat SA | 35,320 | 2,512 | CLP Holdings, Ltd. | 35,000 | 369 | ||||
Vinci SA | 8,654 | 737 | CNOOC, Ltd. | 204,000 | 237 | ||||
61,610 | Hang Lung Properties, Ltd. - ADR | 229,000 | 600 | ||||||
Henderson Land Development Co., Ltd. | 57,000 | 361 | |||||||
Germany - 3.5% | Hong Kong & China Gas Co., Ltd. | 203,000 | 406 | ||||||
adidas AG | 2,086 | 418 | Hong Kong Exchanges & Clearing, Ltd. | 15,300 | 376 | ||||
Allianz SE | 7,563 | 1,440 | Hongkong Land Holdings, Ltd. | 18,700 | 144 | ||||
BASF SE | 9,530 | 929 | Hua Hong Semiconductor, Ltd.(Þ) | 354,000 | 502 | ||||
Bayer AG | 8,440 | 1,044 | Jardine Matheson Holdings, Ltd. | 4,000 | 258 | ||||
Bayerische Motoren Werke AG | 3,521 | 336 | Jardine Strategic Holdings, Ltd. | 17,700 | 747 | ||||
Continental AG | 12,483 | 2,794 | Kingboard Chemical Holdings, Ltd. | 109,500 | 395 | ||||
Daimler AG | 13,652 | 1,017 | Link Real Estate Investment Trust(ö) | 68,000 | 489 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 271
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
MTR Corp., Ltd. | 24,500 | 141 | Nice, Ltd. | 600 | 41 | ||||
Nine Dragons Paper Holdings, Ltd. | 325,000 | 350 | Teva Pharmaceutical Industries, Ltd. | 10,003 | 315 | ||||
Power Assets Holdings, Ltd. | 9,500 | 85 | 1,415 | ||||||
Shenzhen International Holdings, Ltd. | 18 | — | |||||||
Skyworth Digital Holdings, Ltd. | 582,000 | 338 | Italy - 1.4% | ||||||
Sun Hung Kai Properties, Ltd. | 40,000 | 599 | Assicurazioni Generali SpA | 33,808 | 535 | ||||
Swire Pacific, Ltd. Class A | 16,000 | 154 | Atlantia SpA | 13,311 | 338 | ||||
Swire Properties, Ltd. | 146,800 | 493 | Davide Campari-Milano SpA | 11,235 | 133 | ||||
WH Group, Ltd.(Þ) | 1,395,782 | 1,247 | Enel SpA | 739,735 | 3,513 | ||||
Wharf Holdings, Ltd. (The) | 66,000 | 563 | ENI SpA - ADR | 195,795 | 3,037 | ||||
Yue Yuen Industrial Holdings, Ltd. | 179,395 | 709 | Intesa Sanpaolo SpA | 249,487 | 726 | ||||
22,897 | Snam Rete Gas SpA | 61,480 | 272 | ||||||
Telecom Italia SpA(Æ) | 1,475,159 | 1,308 | |||||||
Hungary - 0.2% | UniCredit SpA(Æ) | 82,176 | 1,337 | ||||||
MOL Hungarian Oil & Gas PLC | 4,041 | 304 | Unipol Gruppo Finanziario SpA | 111,971 | 499 | ||||
OTP Bank PLC | 51,384 | 1,445 | 11,698 | ||||||
1,749 | |||||||||
Japan - 10.7% | |||||||||
India - 2.2% | Aeon Co., Ltd. | 21,600 | 321 | ||||||
Britannia Industries, Ltd. | 24,768 | 1,397 | Aisin Seiki Co., Ltd. | 4,100 | 201 | ||||
HDFC Bank, Ltd. - ADR | 33,041 | 2,630 | Alfresa Holdings Corp. | 2,400 | 43 | ||||
ICICI Bank, Ltd. - ADR | 129,488 | 1,110 | Aozora Bank, Ltd. | 33,000 | 120 | ||||
Infosys, Ltd. - ADR | 24,612 | 358 | As One Corp. | 21,074 | 933 | ||||
Mahindra & Mahindra Financial | Asahi Group Holdings, Ltd. | 10,400 | 393 | ||||||
Services, Ltd. | 233,653 | 1,223 | Asahi Kasei Corp. | 38,000 | 362 | ||||
Mahindra & Mahindra, Ltd. - GDR | 10,041 | 210 | Astellas Pharma, Inc. | 21,400 | 282 | ||||
Motherson Sumi Systems, Ltd.(Æ) | 233,839 | 1,457 | Bridgestone Corp. | 13,000 | 543 | ||||
Power Finance Corp., Ltd. | 194,024 | 482 | Canon, Inc. | 11,406 | 379 | ||||
Punjab National Bank(Æ) | 248,396 | 652 | Central Japan Railway Co. | 2,200 | 369 | ||||
Reliance Industries, Ltd. - GDR(Æ)(Þ) | 97,437 | 4,215 | Cosel Co., Ltd. | 99,277 | 1,265 | ||||
State Bank of India - GDR | 9,037 | 408 | Dai Nippon Printing Co., Ltd. | 28,000 | 312 | ||||
Tata Chemicals, Ltd. | 42,685 | 436 | Dai-ichi Life Holdings, Inc. | 131,185 | 2,238 | ||||
Tata Motors, Ltd. - ADR | 64,687 | 2,307 | Daiichi Sankyo Co., Ltd. | 7,300 | 162 | ||||
Tata Motors, Ltd. Class A | 35,046 | 152 | Daikin Industries, Ltd. | 4,300 | 418 | ||||
Vedanta, Ltd. - ADR | 55,678 | 846 | Daiseki Co., Ltd. | 43,900 | 979 | ||||
Zee Entertainment Enterprises, Ltd. | 107,550 | 880 | Daiwa House Industry Co., Ltd. | 13,200 | 392 | ||||
18,763 | Denso Corp. | 42 | 2 | ||||||
East Japan Railway Co. | 3,400 | 304 | |||||||
Indonesia - 0.4% | Ebara Corp. | 76,100 | 2,322 | ||||||
Astra International Tbk PT | 683,800 | 459 | FamilyMart UNY Holdings Co., Ltd. | 800 | 45 | ||||
Bank Central Asia Tbk PT | 1,198,900 | 1,589 | FANUC Corp. | 14,523 | 2,953 | ||||
Gudang Garam Tbk PT | 5,300 | 26 | FUJIFILM Holdings Corp. | 12,721 | 472 | ||||
Tambang Batubara Bukit Asam Persero | Fujitsu, Ltd. | 701,146 | 4,376 | ||||||
Tbk PT | 268,600 | 255 | Hankyu Hanshin Holdings, Inc. | 10,300 | 340 | ||||
United Tractors Tbk PT | 445,300 | 899 | Hitachi, Ltd. | 60,000 | 331 | ||||
3,228 | Honda Motor Co., Ltd. | 253,065 | 7,340 | ||||||
Hoshizaki Electric Co., Ltd. | 1,400 | 117 | |||||||
Ireland - 0.4% | Hoya Corp. | 8,900 | 426 | ||||||
CRH PLC | 2,539 | 93 | Icom, Inc. | 31,000 | 709 | ||||
DCC PLC | 4,383 | 405 | Iida Group Holdings Co., Ltd. | 12,600 | 201 | ||||
Willis Towers Watson PLC | 11,062 | 1,467 | Inpex Corp. | 274,900 | 2,636 | ||||
XL Group, Ltd. | 39,350 | 1,646 | Isuzu Motors, Ltd. | 234,300 | 3,180 | ||||
3,611 | ITOCHU Corp. | 92,918 | 1,315 | ||||||
Iyo Bank, Ltd. (The) | 46,700 | 332 | |||||||
Israel - 0.2% | Japan Post Bank Co., Ltd. | 27,688 | 345 | ||||||
Bank Hapoalim BM | 47,764 | 298 | Japan Post Holdings Co., Ltd. | 9,800 | 121 | ||||
Bank Leumi Le-Israel BM(Æ) | 66,942 | 313 | Japan Tobacco, Inc. | 6,000 | 200 | ||||
Mizrahi Tefahot Bank, Ltd. | 27,841 | 448 | JX Holdings, Inc. | 91,400 | 413 |
See accompanying notes which are an integral part of the financial statements.
272 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Kajima Corp. | 25,000 | 170 | Sumitomo Chemical Co., Ltd. | 69,000 | 390 | |||||
Kamigumi Co., Ltd. | 32,000 | 291 | Sumitomo Corp. | 45,600 | 610 | |||||
Kao Corp. | 3,700 | 204 | Sumitomo Electric Industries, Ltd. | 15,700 | 256 | |||||
KDDI Corp. | 23,400 | 621 | Sumitomo Mitsui Financial Group, Inc. | 72,902 | 2,702 | |||||
Keyence Corp. | 15,600 | 6,276 | Sumitomo Mitsui Trust Holdings, Inc. | 11,100 | 381 | |||||
Kikkoman Corp. | 2,000 | 61 | Suntory Beverage & Food, Ltd. | 7,000 | 313 | |||||
Kirin Holdings Co., Ltd. | 18,600 | 362 | Suzuki Motor Corp. | 10,100 | 422 | |||||
Kitagawa Industries Co., Ltd. | 40,500 | 398 | Taisei Corp. | 41,000 | 313 | |||||
Komatsu, Ltd. | 17,300 | 462 | Takeda Pharmaceutical Co., Ltd. | 7,800 | 374 | |||||
Kuraray Co., Ltd. | 28,500 | 460 | Terumo Corp. | 1,300 | 47 | |||||
Kuroda Electric Co., Ltd. | 18,051 | 377 | Tokio Marine Holdings, Inc. | 7,800 | 329 | |||||
Kyushu Electric Power Co., Inc. | 37,000 | 399 | Tokyo Electric Power Co., Inc.(Æ) | 33,100 | 129 | |||||
Marubeni Corp. | 66,000 | 407 | Tokyo Gas Co., Ltd. | 83,000 | 386 | |||||
Medipal Holdings Corp. | 2,600 | 43 | Toppan Printing Co., Ltd. | 34,000 | 342 | |||||
MEIJI Holdings Co., Ltd. | 400 | 34 | Toray Industries, Inc. | 45,000 | 398 | |||||
Mitsubishi Chemical Holdings Corp. | 43,600 | 341 | Toyota Motor Corp. | 47,200 | 2,551 | |||||
Mitsubishi Corp. | 18,400 | 397 | Toyota Tsusho Corp. | 5,300 | 167 | |||||
Mitsubishi Electric Corp. | 13,000 | 181 | Unicharm Corp. | 55,888 | 1,358 | |||||
Mitsubishi UFJ Financial Group, Inc. | 526,816 | 3,360 | West Japan Railway Co. | 15,500 | 1,035 | |||||
Mitsui & Co., Ltd. | 40,200 | 567 | Yamada Denki Co., Ltd. | 25,400 | 133 | |||||
Mizuho Financial Group, Inc. | 173,500 | 317 | 91,765 | |||||||
MS&AD Insurance Group Holdings, Inc. | 16,000 | 522 | ||||||||
Murata Manufacturing Co., Ltd. | 5 | 1 | Jersey - 0.3% | |||||||
Nakanishi, Inc. | 18,959 | 745 | Experian PLC | 22,139 | 475 | |||||
NEC Corp. | 119,000 | 296 | Glencore PLC(Æ) | 336,163 | 1,318 | |||||
NHK Spring Co., Ltd. | 38,600 | 431 | Wolseley PLC - ADR | 8,810 | 559 | |||||
Nidec Corp. | 2,800 | 257 | 2,352 | |||||||
Nikon Corp. | 8,800 | 126 | ||||||||
Nintendo Co., Ltd. | 1,175 | 296 | Kazakhstan - 0.0% | |||||||
Nippon Fine Chemical Co., Ltd. | 98,200 | 830 | KazMunaiGas Exploration Production | |||||||
Nippon Steel & Sumitomo Metal Corp. | 16,700 | 376 | JSC - GDR(Æ) | 24,480 | 237 | |||||
Nippon Telegraph & Telephone Corp. | 15,400 | 659 | ||||||||
Nissan Motor Co., Ltd. | 17,300 | 164 | Luxembourg - 0.3% | |||||||
Nitori Holdings Co., Ltd. | 9,600 | 1,251 | ArcelorMittal(Æ) | 126,071 | 989 | |||||
Nitto FC Co., Ltd. | 97,952 | 792 | Globant SA(Æ) | 11,264 | 427 | |||||
NTT DOCOMO, Inc. | 37,099 | 895 | Tenaris SA | 45,498 | 712 | |||||
Obayashi Corp. | 14,000 | 136 | Ternium SA - ADR | 9,542 | 242 | |||||
Obic Co., Ltd. | 300 | 16 | 2,370 | |||||||
Oriental Land Co., Ltd. | 5,700 | 327 | ||||||||
ORIX Corp. | 26,035 | 398 | Malaysia - 0.1% | |||||||
Osaka Gas Co., Ltd. | 37,000 | 139 | Tenaga Nasional BHD | 122,000 | 392 | |||||
Otsuka Holdings Co., Ltd. | 7,400 | 342 | UEM Sunrise BHD | 967,200 | 276 | |||||
Panasonic Corp. | 36,000 | 430 | 668 | |||||||
Recruit Holdings Co., Ltd. | 7,300 | 369 | ||||||||
Resona Holdings, Inc. | 98,500 | 549 | Mexico - 1.5% | |||||||
Secom Co., Ltd. | 23,363 | 1,697 | America Movil SAB de CV | 4,218,268 | 3,242 | |||||
Secom Joshinetsu Co., Ltd. | 24,000 | 728 | America Movil SAB de CV Class L | |||||||
Sekisui Chemical Co., Ltd. | 28,000 | 470 | - ADR | 38,529 | 593 | |||||
Sekisui House, Ltd. | 19,500 | 324 | Cemex SAB de CV - ADR(Æ) | 89,362 | 824 | |||||
Seven & i Holdings Co., Ltd. | 12,335 | 521 | Coca-Cola Femsa SAB de CV | 42,352 | 308 | |||||
Shimadzu Corp. | 3,000 | 51 | Coca-Cola Femsa SAB de CV - ADR | 15,194 | 1,105 | |||||
Shimano, Inc. | 17,287 | 2,643 | Fomento Economico Mexicano SAB de | |||||||
Shingakukai Co., Ltd. | 62,300 | 323 | CV - ADR | 4,757 | 428 | |||||
Shinsei Bank, Ltd. | 220,000 | 411 | Gentera SAB de CV | 84,244 | 141 | |||||
SoftBank Group Corp. | 12,792 | 970 | Gruma SAB de CV Class B | 8,650 | 116 | |||||
Sojitz Corp. | 110,200 | 280 | Grupo Bimbo SAB de CV | 142,426 | 349 | |||||
Sompo Japan Nipponkoa Holdings, Inc. | 90,901 | 3,432 | Grupo Cementos de Chihuahua SAB | |||||||
Sony Corp. | 89,200 | 3,012 | de CV | 60,981 | 289 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 273
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Grupo Fin Santander ADR B - ADR | 34,840 | 317 | Sonae SGPS SA(Æ) | 419,494 | 432 | |||||
Grupo Financiero Banorte SAB de CV | 702 | |||||||||
Class O | 106,441 | 616 | ||||||||
Grupo Televisa SAB - ADR | 124,312 | 3,021 | Russia - 1.6% | |||||||
Grupo Televisa SAB | 42,829 | 208 | Gazprom PJSC - ADR | 669,361 | 3,179 | |||||
Industrias Bachoco SAB de CV | 72,421 | 323 | Lukoil PJSC - ADR | 56,390 | 2,800 | |||||
Megacable Holdings SAB de CV | 130,457 | 495 | Magnit PJSC - GDR | 26,111 | 912 | |||||
Promotora y Operadora de | MegaFon PJSC - GDR | 12,494 | 134 | |||||||
Infraestructura SAB de CV | 5,741 | 61 | MMC Norilsk Nickel PJSC - ADR | 58,765 | 902 | |||||
Wal-Mart de Mexico SAB de CV | 54,131 | 122 | Mobile TeleSystems PJSC - ADR | 27,882 | 288 | |||||
12,558 | Novatek OAO - GDR | 3,026 | 366 | |||||||
Novolipetsk Steel PJSC - GDR | 120,727 | 2,285 | ||||||||
Netherlands - 2.3% | Rosneft Oil Co. - GDR | 74,880 | 414 | |||||||
Aalberts Industries NV | 2,677 | 106 | Sberbank of Russia PJSC - ADR | 143,651 | 1,707 | |||||
ABN AMRO Group NV(Þ) | 20,333 | 533 | Severstal PJSC - GDR | 9,552 | 130 | |||||
Aegon NV | 55,283 | 281 | Surgutneftegas OAO - ADR | 43,607 | 235 | |||||
AerCap Holdings NV(Æ) | 7,284 | 335 | Tatneft PJSC - ADR | 19,614 | 768 | |||||
Akzo Nobel NV | 5,708 | 498 | 14,120 | |||||||
ASM International NV | 5,539 | 333 | ||||||||
ASML Holding NV | 2,690 | 355 | Singapore - 0.9% | |||||||
Delta Lloyd NV | 81,643 | 469 | CapitaLand Commercial Trust, Ltd.(Æ) | |||||||
Heineken Holding NV | 4,865 | 407 | (ö) | 351,300 | 407 | |||||
Heineken NV | 3,822 | 341 | CapitaLand, Ltd. | 68,100 | 183 | |||||
ING Groep NV | 261,208 | 4,250 | DBS Group Holdings, Ltd. | 34,000 | 472 | |||||
Koninklijke Ahold Delhaize NV | 20,195 | 418 | Oversea-Chinese Banking Corp., Ltd. | 108,300 | 762 | |||||
Koninklijke KPN NV | 512,390 | 1,482 | Singapore Telecommunications, Ltd. | 1,178,678 | 3,160 | |||||
Koninklijke Philips NV | 16,990 | 589 | United Overseas Bank, Ltd. | 15,200 | 238 | |||||
NN Group NV | 10,510 | 348 | Wilmar International, Ltd. | 914,200 | 2,320 | |||||
Royal Dutch Shell PLC Class A | 185,875 | 4,846 | 7,542 | |||||||
VEON, Ltd.(Æ) | 87,346 | 361 | ||||||||
Wolters Kluwer NV | 9,140 | 388 | South Africa - 0.4% | |||||||
X5 Retail Group NV - GDR(Æ) | 69,444 | 2,448 | Aspen Pharmacare Holdings, Ltd. | 37,793 | 785 | |||||
Yandex NV Class A(Æ) | 25,355 | 691 | Bidvest Group, Ltd. (The) | 54,688 | 653 | |||||
19,479 | Naspers, Ltd. Class N | 2,031 | 385 | |||||||
Resilient Property Income(Æ) | 37,971 | 331 | ||||||||
New Zealand - 0.0% | Sasol, Ltd. - ADR | 11,004 | 336 | |||||||
Fonterra Co.-operative Group, Ltd. | 35,614 | 146 | Shoprite Holdings, Ltd. - ADR | 16,874 | 265 | |||||
Vodacom Group, Ltd. - ADR | 27,565 | 311 | ||||||||
Norway - 0.4% | Woolworths Holdings, Ltd. | 22,155 | 120 | |||||||
DNB ASA | 35,639 | 557 | 3,186 | |||||||
Orkla ASA | 168,716 | 1,529 | ||||||||
Telenor ASA | 78,562 | 1,270 | South Korea - 6.0% | |||||||
3,356 | BGF retail Co., Ltd. | 9,706 | 937 | |||||||
Daelim Industrial Co., Ltd. | 5,369 | 379 | ||||||||
Peru - 0.1% | Dongbu Insurance Co., Ltd. | 14,914 | 891 | |||||||
Cia de Minas Buenaventura SAA - ADR | 70,839 | 851 | E-MART, Inc. | 2,393 | 485 | |||||
Grand Korea Leisure Co., Ltd. | 51,916 | 990 | ||||||||
Philippines - 0.1% | GS Holdings Corp. | 5,078 | 264 | |||||||
BDO Unibank, Inc. | 338,140 | 811 | Hana Financial Group, Inc. | 140,548 | 4,830 | |||||
Hankook Tire Co., Ltd. | 30,812 | 1,595 | ||||||||
Poland - 0.2% | Hanssem Co., Ltd. | 5,703 | 1,103 | |||||||
KGHM Polska Miedz SA | 33,826 | 1,075 | Hyundai Development Co.-Engineering | |||||||
Polski Koncern Naftowy ORLEN SA | 6,442 | 193 | & Construction | 7,954 | 313 | |||||
Powszechny Zaklad Ubezpieczen SA | 46,783 | 516 | Hyundai Engineering & Construction | |||||||
1,784 | Co., Ltd. | 17,823 | 759 | |||||||
Hyundai Marine & Fire Insurance Co., | ||||||||||
Portugal - 0.1% | Ltd. | 9,462 | 305 | |||||||
Energias de Portugal SA | 81,906 | 270 | Hyundai Mobis Co., Ltd. | 1,302 | 254 |
See accompanying notes which are an integral part of the financial statements.
274 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Hyundai Motor Co. | 30,297 | 3,829 | Trelleborg AB Class B | 17,236 | 405 | |||||
KB Financial Group, Inc. | 63,829 | 2,799 | 11,704 | |||||||
KB Financial Group, Inc. - ADR | 14,261 | 620 | ||||||||
KCC Corp. | 1,438 | 430 | Switzerland - 8.3% | |||||||
KT Corp. - ADR | 40,700 | 675 | ABB, Ltd. | 225,768 | 5,524 | |||||
KT&G Corp. | 17,465 | 1,558 | Actelion, Ltd.(Æ) | 1,338 | 357 | |||||
Kumho Petrochemical Co., Ltd. | 15,155 | 1,013 | Allreal Holding AG(Æ) | 1,934 | 333 | |||||
LG Chem, Ltd. | 3,197 | 769 | Baloise Holding AG | 3,248 | 476 | |||||
LG Innotek Co., Ltd. | 4,081 | 472 | Basellandschaftliche Kantonalbank | 221 | 200 | |||||
LG Uplus Corp. | 77,245 | 981 | Chocoladefabriken Lindt & Spruengli | |||||||
Lotte Chilsung Beverage Co., Ltd. | 308 | 454 | AG | 20 | 416 | |||||
Lotte Confectionery Co., Ltd. | 3,915 | 707 | Chubb, Ltd. | 7,326 | 1,005 | |||||
Lotte Shopping Co., Ltd. | 2,929 | 675 | Cie Financiere Richemont SA | 67,324 | 5,626 | |||||
POSCO | 21,574 | 5,094 | Credit Suisse Group AG(Æ) | 100,725 | 1,531 | |||||
Samsung Electronics Co., Ltd. | 6,126 | 11,974 | Flughafen Zuerich AG | 6,031 | 1,328 | |||||
Samsung Engineering Co., Ltd.(Æ) | 20,253 | 217 | Geberit AG | 7,430 | 3,383 | |||||
Samsung Life Insurance Co., Ltd. | 8,594 | 826 | Georg Fischer AG | 393 | 370 | |||||
Shinhan Financial Group Co., Ltd. | 36,649 | 1,530 | Givaudan SA | 227 | 437 | |||||
SK Hynix, Inc. | 35,088 | 1,666 | Kuehne & Nagel International AG | 897 | 136 | |||||
SK Telecom Co., Ltd. - ADR | 68,277 | 1,611 | LafargeHolcim, Ltd.(Æ) | 10,796 | 612 | |||||
S-Oil Corp. | 3,456 | 303 | Lonza Group AG(Æ) | 163 | 33 | |||||
Woori Bank | 23,620 | 310 | Nestle SA | 155,797 | 12,002 | |||||
51,618 | Novartis AG | 150,562 | 11,587 | |||||||
Partners Group Holding AG | 81 | 49 | ||||||||
Spain - 0.9% | Roche Holding AG | 50,672 | 13,254 | |||||||
Abertis Infraestructuras SA | 27,820 | 489 | Schindler Holding AG | 20,479 | 4,175 | |||||
Amadeus IT Group SA Class A | 26,235 | 1,415 | SGS SA | 192 | 432 | |||||
Banco Bilbao Vizcaya Argentaria SA | Sika AG | 56 | 357 | |||||||
- ADR | 49,164 | 393 | St. Galler Kantonalbank AG | 637 | 277 | |||||
Banco de Sabadell SA - ADR | 97,347 | 187 | STMicroelectronics NV | 84,388 | 1,366 | |||||
Banco Santander SA - ADR | 161,188 | 1,051 | Straumann Holding AG | 153 | 81 | |||||
CaixaBank SA | 108,995 | 494 | Swiss Life Holding AG(Æ) | 413 | 134 | |||||
Enagas SA | 16,027 | 422 | Swiss Re AG | 8,390 | 730 | |||||
Endesa SA - ADR | 8,418 | 198 | Swisscom AG | 746 | 325 | |||||
Gas Natural SDG SA | 23,314 | 527 | Syngenta AG | 1,399 | 650 | |||||
Iberdrola SA | 97,488 | 701 | TE Connectivity, Ltd. | 2,475 | 191 | |||||
Industria de Diseno Textil SA | 2,080 | 80 | UBS Group AG(Æ) | 212,715 | 3,634 | |||||
Mapfre SA | 121,880 | 425 | Zurich Insurance Group AG | 2,176 | 602 | |||||
Repsol SA - ADR | 38,560 | 610 | 71,613 | |||||||
Telefonica SA - ADR | 42,914 | 473 | ||||||||
7,465 | Taiwan - 3.4% | |||||||||
Advanced Semiconductor Engineering, | ||||||||||
Sweden - 1.4% | Inc. - ADR | 163,428 | 1,023 | |||||||
Assa Abloy AB Class B | 4,860 | 105 | Asustek Computer, Inc. | 31,000 | 304 | |||||
Castellum AB | 24,958 | 342 | Chang Hwa Commercial Bank, Ltd. | 364,640 | 211 | |||||
Hufvudstaden AB Class A | 3,405 | 53 | China Development Financial Holding | |||||||
L E Lundbergforetagen AB Class B | 8,737 | 632 | Corp. | 1,711,000 | 472 | |||||
Nordea Bank AB | 72,912 | 897 | China Life Insurance Co., Ltd. | 270,400 | 252 | |||||
Skandinaviska Enskilda Banken AB | Chipbond Technology Corp. | 418,000 | 623 | |||||||
Class A | 37,417 | 431 | Chunghwa Telecom Co., Ltd. - ADR | 11,428 | 387 | |||||
Skanska AB Class B | 14,156 | 338 | Compal Electronics, Inc. | 480,178 | 321 | |||||
Svenska Cellulosa AB SCA Class B | 5,320 | 176 | CTBC Financial Holding Co., Ltd. | 662,000 | 413 | |||||
Svenska Handelsbanken AB Class A | 232,925 | 3,305 | Delta Electronics, Inc. | 181,000 | 1,020 | |||||
Swedbank AB Class A | 12,160 | 288 | E.Sun Financial Holding Co., Ltd. | 18,073 | 11 | |||||
Swedish Match AB | 118,468 | 3,909 | Eclat Textile Co., Ltd. | 88,000 | 964 | |||||
Telefonaktiebolaget LM Ericsson Class B | 67,881 | 437 | Foxconn Technology Co., Ltd. | 80,000 | 244 | |||||
Telia Co. AB | 94,818 | 386 | Fubon Financial Holding Co., Ltd. | 319,000 | 500 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 275
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Hon Hai Precision Industry Co., Ltd. | CNH Industrial NV | 29,387 | 324 | ||||||
- GDR | 554,716 | 3,700 | Compass Group PLC | 33,294 | 672 | ||||
Hota Industrial Manufacturing Co., Ltd. | 239,442 | 1,054 | Diageo PLC | 310,753 | 9,051 | ||||
Inventec Corp. | 299,000 | 222 | Direct Line Insurance Group PLC | 91,569 | 414 | ||||
Largan Precision Co., Ltd. | 13,421 | 2,228 | Foxtons Group PLC | 441,696 | 586 | ||||
Lite-On Technology Corp. | 191,000 | 333 | G4S PLC | 641,771 | 2,536 | ||||
MediaTek, Inc. | 131,000 | 942 | Galiform PLC | 247,910 | 1,487 | ||||
Pegatron Corp. | 293,000 | 862 | GKN PLC | 88,326 | 411 | ||||
Quanta Computer, Inc. | 349,000 | 723 | GlaxoSmithKline PLC - ADR | 244,365 | 4,915 | ||||
Realtek Semiconductor Corp. | 246,000 | 831 | Halma PLC | 7,340 | 100 | ||||
Taiwan Semiconductor Manufacturing | HSBC Holdings PLC | 584,416 | 4,813 | ||||||
Co., Ltd. - ADR | 279,900 | 9,255 | Imperial Tobacco Group PLC | 89,994 | 4,405 | ||||
Tripod Technology Corp. | 129,000 | 364 | Inchcape PLC | 41,092 | 455 | ||||
United Microelectronics Corp. - ADR | 114,497 | 222 | InterContinental Hotels Group PLC | 87,992 | 4,665 | ||||
Win Semiconductors Corp. | 305,536 | 1,361 | Intertek Group PLC | 83,138 | 4,374 | ||||
Wistron Corp. | 714,524 | 676 | Investec PLC | 60,762 | 449 | ||||
29,518 | J Sainsbury PLC | 146,103 | 521 | ||||||
KAZ Minerals PLC(Æ) | 86,662 | 564 | |||||||
Thailand - 0.3% | Kingfisher PLC | 79,182 | 350 | ||||||
Bangkok Bank PCL | 93,200 | 504 | Land Securities Group PLC(ö) | 27,245 | 390 | ||||
Land & Houses PCL | 2,419,000 | 720 | Legal & General Group PLC | 190,706 | 607 | ||||
PTT Global Chemical PCL | 437,400 | 949 | Lloyds Banking Group PLC | 4,055,770 | 3,643 | ||||
PTT PCL | 77,200 | 869 | LSL Property Services PLC | 396,506 | 1,057 | ||||
3,042 | Man Group PLC | 210,369 | 419 | ||||||
Meggitt PLC | 300,958 | 1,801 | |||||||
Turkey - 0.4% | Michael Page International PLC | 486,554 | 3,151 | ||||||
Akbank TAS | 334,079 | 894 | National Grid PLC | 35,150 | 455 | ||||
Haci Omer Sabanci Holding AS | 186,902 | 557 | Next PLC | 7,350 | 410 | ||||
Turkcell Iletisim Hizmetleri AS | Old Mutual PLC | 43,102 | 108 | ||||||
- ADR(Æ) | 19,083 | 167 | Persimmon PLC Class A | 15,025 | 453 | ||||
Turkiye Garanti Bankasi AS | 100,164 | 270 | Petrofac, Ltd. | 33,064 | 348 | ||||
Turkiye Is Bankasi Class C | 644,435 | 1,271 | Prudential PLC | 18,020 | 400 | ||||
3,159 | Reckitt Benckiser Group PLC | 7,253 | 668 | ||||||
RELX NV | 17,024 | 329 | |||||||
Ukraine - 0.0% | RELX PLC | 18,102 | 367 | ||||||
MHP SA - GDR | 1,431 | 15 | Rio Tinto PLC | 4,260 | 169 | ||||
Rolls-Royce Holdings PLC(Æ) | 3,398,472 | 500 | |||||||
United Arab Emirates - 0.3% | Rotork PLC | 774,461 | 2,464 | ||||||
Aldar Properties PJSC | 1,322,318 | 770 | Royal Bank of Scotland Group PLC(Æ) | 1,245,809 | 4,282 | ||||
Emaar Properties PJSC | 929,606 | 1,815 | Royal Dutch Shell PLC Class A | 35,720 | 925 | ||||
2,585 | Royal Dutch Shell PLC Class B | 31,446 | 837 | ||||||
RSA Insurance Group PLC | 160,744 | 1,241 | |||||||
United Kingdom - 15.0% | Scottish & Southern Energy PLC | 22,797 | 411 | ||||||
Amec Foster Wheeler PLC - GDR | 95,706 | 672 | Smiths Group PLC | 62,814 | 1,333 | ||||
Anglo American PLC(Æ) | 59,312 | 845 | Spirax-Sarco Engineering PLC | 51,490 | 3,465 | ||||
Antofagasta PLC | 386,807 | 4,192 | Standard Chartered PLC(Æ) | 232,045 | 2,166 | ||||
AstraZeneca PLC | 11,575 | 692 | Standard Life PLC | 57,936 | 273 | ||||
Aviva PLC | 365,243 | 2,481 | Stock Spirits Group PLC | 631,125 | 1,431 | ||||
BAE Systems PLC | 633,224 | 5,139 | Tate & Lyle PLC | 34,713 | 340 | ||||
Barclays PLC | 801,723 | 2,185 | TechnipFMC PLC(Æ) | 4,006 | 120 | ||||
BBA Aviation PLC | 549,497 | 2,215 | Tesco PLC(Æ) | 1,643,880 | 3,899 | ||||
BGEO Group PLC | 9,468 | 441 | Travis Perkins PLC | 194,275 | 4,053 | ||||
BHP Billiton PLC | 47,929 | 730 | Tullow Oil PLC(Æ) | 580,809 | 1,573 | ||||
BP PLC | 214,116 | 1,225 | Unilever NV | 155,377 | 8,149 | ||||
BP PLC - ADR | 73,771 | 2,532 | Unilever PLC | 15,866 | 816 | ||||
British American Tobacco PLC | 21,199 | 1,434 | Vodafone Group PLC | 1,945,445 | 5,015 | ||||
BT Group PLC | 161,345 | 637 | WM Morrison Supermarkets PLC | 120,368 | 374 | ||||
Bunzl PLC | 80,343 | 2,506 |
See accompanying notes which are an integral part of the financial statements.
276 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
WPP PLC | 65,968 | 1,412 | (identified cost $724,675) | 840,710 | |||
128,872 | |||||||
United States - 1.0% | Other Assets and Liabilities, Net | ||||||
Carnival PLC | 6,909 | 426 | - 1.9% | 15,965 | |||
Gran Tierra Energy, Inc.(Æ) | 38,814 | 98 | Net Assets - 100.0% | 856,675 | |||
IHS Markit, Ltd.(Æ) | 67,990 | 2,950 | |||||
MercadoLibre, Inc. | 4,139 | 947 | |||||
Mylan NV(Æ) | 55,785 | 2,084 | |||||
News Corp. Class A | 160,735 | 2,045 | |||||
8,550 | |||||||
Virgin Islands, British - 0.0% | |||||||
Arcos Dorados Holdings, Inc. Class | |||||||
A(Æ) | 42,864 | 351 | |||||
Total Common Stocks | |||||||
(cost $663,576) | 778,570 | ||||||
Preferred Stocks - 0.9% | |||||||
Colombia - 0.0% | |||||||
Banco Davivienda SA | 40,000 | 421 | |||||
Germany - 0.8% | |||||||
Funchs Petrolub SE | 41,428 | 2,137 | |||||
Henkel AG & Co. KGaA | 4,333 | 590 | |||||
Porsche Automobil Holding SE | 6,006 | 351 | |||||
Volkswagen AG | 21,969 | 3,485 | |||||
6,563 | |||||||
Japan - 0.0% | |||||||
Shinkin Central Bank Class A | 78 | 162 | |||||
South Korea - 0.1% | |||||||
Samsung Electronics Co., Ltd. | 472 | 725 | |||||
Total Preferred Stocks | |||||||
(cost $6,859) | 7,871 | ||||||
Warrants & Rights - 0.2% | |||||||
United Kingdom - 0.2% | |||||||
HSBC Bank PLC(Æ) | |||||||
2017 Warrants | 131,618 | 1,492 | |||||
HSBC Bank PLC(Æ) | |||||||
2018 Warrants | 49,376 | 428 | |||||
Total Warrants & Rights | |||||||
(cost $1,893) | 1,920 | ||||||
Short-Term Investments - 6.1% | |||||||
United States - 6.1% | |||||||
U.S. Cash Management Fund | 52,338,083 | (8) | 52,349 | ||||
Total Short-Term Investments | |||||||
(cost $52,347) | 52,349 | ||||||
Total Investments 98.1% |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 277
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
EURO STOXX 50 Index Futures | 708 | EUR | 24,837 | 06/17 | 1,330 | ||
MSCI Emerging Markets Mini Index Futures | 761 | USD | 59,342 | 06/17 | 1,916 | ||
S&P/TSX 60 Index Futures | 60 | CAD | 11,002 | 06/17 | 40 | ||
SPI 200 Index Futures | 58 | AUD | 8,574 | 06/17 | 169 | ||
TOPIX Index Futures | 245 | JPY | 3,748,500 | 06/17 | (247 | ) | |
Short Positions | |||||||
FTSE 100 Index Futures | 272 | GBP | 19,489 | 06/17 | 421 | ||
MSCI Emerging Markets Mini Index Futures | 651 | USD | 31,866 | 06/17 | (1,522 | ) | |
S&P 500 E-Mini Index Futures | 226 | USD | 26,900 | 06/17 | (203 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 1,904 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 303 | AUD | 400 | 06/21/17 | (4 | ) |
Bank of America | USD | 1,894 | AUD | 2,500 | 06/21/17 | (24 | ) |
Bank of America | USD | 375 | CAD | 500 | 06/21/17 | (8 | ) |
Bank of America | USD | 596 | CAD | 800 | 06/21/17 | (9 | ) |
Bank of America | USD | 1,862 | CAD | 2,500 | 06/21/17 | (29 | ) |
Bank of America | USD | 1,709 | EUR | 1,600 | 06/21/17 | 38 | |
Bank of America | USD | 61 | GBP | 50 | 06/21/17 | 4 | |
Bank of America | USD | 246 | GBP | 200 | 06/21/17 | 13 | |
Bank of America | USD | 103 | HKD | 800 | 06/21/17 | — | |
Bank of America | USD | 129 | HKD | 1,000 | 06/21/17 | — | |
Bank of America | USD | 1,750 | JPY | 200,000 | 06/21/17 | 48 | |
Bank of America | USD | 84 | NZD | 120 | 06/21/17 | (2 | ) |
Bank of America | USD | 104 | NZD | 150 | 06/21/17 | (1 | ) |
Bank of America | CHF | 2,000 | USD | 1,996 | 06/21/17 | (20 | ) |
Bank of America | DKK | 800 | USD | 115 | 06/21/17 | (3 | ) |
Bank of America | EUR | 400 | USD | 427 | 06/21/17 | (10 | ) |
Bank of America | EUR | 400 | USD | 428 | 06/21/17 | (9 | ) |
Bank of America | GBP | 1,600 | USD | 1,958 | 06/21/17 | (117 | ) |
Bank of America | JPY | 1,609 | USD | 14 | 05/01/17 | — | |
Bank of America | JPY | 120,000 | USD | 1,050 | 06/21/17 | (29 | ) |
Bank of America | NOK | 1,400 | USD | 163 | 06/21/17 | — | |
Bank of America | NOK | 2,000 | USD | 233 | 06/21/17 | — | |
Bank of America | SEK | 350 | USD | 39 | 06/21/17 | — | |
Bank of Montreal | USD | 753 | AUD | 1,000 | 06/21/17 | (5 | ) |
Bank of Montreal | USD | 982 | AUD | 1,285 | 06/21/17 | (20 | ) |
Bank of Montreal | USD | 2,879 | AUD | 3,768 | 06/21/17 | (60 | ) |
Bank of Montreal | USD | 736 | CAD | 1,000 | 06/21/17 | (3 | ) |
Bank of Montreal | USD | 1,209 | CAD | 1,612 | 06/21/17 | (27 | ) |
Bank of Montreal | USD | 3,201 | CAD | 4,268 | 06/21/17 | (72 | ) |
Bank of Montreal | USD | 3,831 | EUR | 3,620 | 06/21/17 | 123 | |
Bank of Montreal | USD | 715 | GBP | 581 | 06/21/17 | 38 | |
Bank of Montreal | USD | 418 | HKD | 3,240 | 06/21/17 | (1 | ) |
Bank of Montreal | USD | 4,742 | JPY | 538,328 | 06/21/17 | 96 | |
Bank of Montreal | USD | 263 | NZD | 370 | 06/21/17 | (10 | ) |
See accompanying notes which are an integral part of the financial statements.
278 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of Montreal | CHF | 1,000 | USD | 1,010 | 06/21/17 | 2 | |
Bank of Montreal | CHF | 3,744 | USD | 3,727 | 06/21/17 | (47 | ) |
Bank of Montreal | DKK | 6,180 | USD | 880 | 06/21/17 | (28 | ) |
Bank of Montreal | EUR | 784 | USD | 830 | 06/21/17 | (27 | ) |
Bank of Montreal | GBP | 3,022 | USD | 3,720 | 06/21/17 | (198 | ) |
Bank of Montreal | JPY | 196,308 | USD | 1,729 | 06/21/17 | (35 | ) |
Bank of Montreal | NOK | 5,030 | USD | 598 | 06/21/17 | 11 | |
Bank of Montreal | SEK | 4,860 | USD | 539 | 06/21/17 | (11 | ) |
BNP Paribas | USD | 973 | AUD | 1,285 | 06/21/17 | (11 | ) |
BNP Paribas | USD | 2,852 | AUD | 3,768 | 06/21/17 | (33 | ) |
BNP Paribas | USD | 1,206 | CAD | 1,612 | 06/21/17 | (24 | ) |
BNP Paribas | USD | 3,193 | CAD | 4,268 | 06/21/17 | (64 | ) |
BNP Paribas | USD | 3,821 | EUR | 3,620 | 06/21/17 | 132 | |
BNP Paribas | USD | 715 | GBP | 581 | 06/21/17 | 39 | |
BNP Paribas | USD | 418 | HKD | 3,240 | 06/21/17 | (1 | ) |
BNP Paribas | USD | 4,724 | JPY | 538,328 | 06/21/17 | 115 | |
BNP Paribas | USD | 261 | NZD | 370 | 06/21/17 | (8 | ) |
BNP Paribas | CHF | 3,744 | USD | 3,715 | 06/21/17 | (59 | ) |
BNP Paribas | DKK | 6,180 | USD | 878 | 06/21/17 | (30 | ) |
BNP Paribas | EUR | 784 | USD | 827 | 06/21/17 | (29 | ) |
BNP Paribas | GBP | 3,022 | USD | 3,718 | 06/21/17 | (201 | ) |
BNP Paribas | JPY | 196,308 | USD | 1,723 | 06/21/17 | (42 | ) |
BNP Paribas | NOK | 5,030 | USD | 594 | 06/21/17 | 8 | |
BNP Paribas | SEK | 4,860 | USD | 539 | 06/21/17 | (11 | ) |
Brown Brothers Harriman | NOK | 2,000 | USD | 234 | 06/21/17 | 1 | |
Brown Brothers Harriman | SEK | 300 | USD | 34 | 06/21/17 | — | |
Commonwealth Bank of Australia | USD | 981 | AUD | 1,285 | 06/21/17 | (19 | ) |
Commonwealth Bank of Australia | USD | 2,876 | AUD | 3,768 | 06/21/17 | (57 | ) |
Commonwealth Bank of Australia | USD | 1,209 | CAD | 1,612 | 06/21/17 | (27 | ) |
Commonwealth Bank of Australia | USD | 3,201 | CAD | 4,268 | 06/21/17 | (72 | ) |
Commonwealth Bank of Australia | USD | 3,833 | EUR | 3,620 | 06/21/17 | 120 | |
Commonwealth Bank of Australia | USD | 715 | GBP | 581 | 06/21/17 | 38 | |
Commonwealth Bank of Australia | USD | 418 | HKD | 3,240 | 06/21/17 | (1 | ) |
Commonwealth Bank of Australia | USD | 4,745 | JPY | 538,328 | 06/21/17 | 94 | |
Commonwealth Bank of Australia | USD | 263 | NZD | 370 | 06/21/17 | (9 | ) |
Commonwealth Bank of Australia | CHF | 3,744 | USD | 3,730 | 06/21/17 | (44 | ) |
Commonwealth Bank of Australia | DKK | 6,180 | USD | 881 | 06/21/17 | (27 | ) |
Commonwealth Bank of Australia | EUR | 784 | USD | 830 | 06/21/17 | (26 | ) |
Commonwealth Bank of Australia | GBP | 3,022 | USD | 3,720 | 06/21/17 | (199 | ) |
Commonwealth Bank of Australia | JPY | 196,308 | USD | 1,730 | 06/21/17 | (34 | ) |
Commonwealth Bank of Australia | NOK | 5,030 | USD | 598 | 06/21/17 | 11 | |
Commonwealth Bank of Australia | SEK | 4,860 | USD | 540 | 06/21/17 | (10 | ) |
Royal Bank of Canada | USD | 372 | AUD | 500 | 06/21/17 | 2 | |
Royal Bank of Canada | USD | 974 | AUD | 1,285 | 06/21/17 | (13 | ) |
Royal Bank of Canada | USD | 2,856 | AUD | 3,768 | 06/21/17 | (37 | ) |
Royal Bank of Canada | USD | 367 | CAD | 500 | 06/21/17 | — | |
Royal Bank of Canada | USD | 1,206 | CAD | 1,612 | 06/21/17 | (25 | ) |
Royal Bank of Canada | USD | 3,194 | CAD | 4,268 | 06/21/17 | (65 | ) |
Royal Bank of Canada | USD | 3,822 | EUR | 3,620 | 06/21/17 | 130 | |
Royal Bank of Canada | USD | 715 | GBP | 581 | 06/21/17 | 39 | |
Royal Bank of Canada | USD | 418 | HKD | 3,240 | 06/21/17 | (1 | ) |
Royal Bank of Canada | USD | 4,731 | JPY | 538,328 | 06/21/17 | 107 | |
Royal Bank of Canada | USD | 69 | NZD | 100 | 06/21/17 | — |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 279
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Royal Bank of Canada | USD | 262 | NZD | 370 | 06/21/17 | (8 | ) |
Royal Bank of Canada | CHF | 3,744 | USD | 3,719 | 06/21/17 | (55 | ) |
Royal Bank of Canada | DKK | 500 | USD | 73 | 06/21/17 | — | |
Royal Bank of Canada | DKK | 6,180 | USD | 879 | 06/21/17 | (28 | ) |
Royal Bank of Canada | EUR | 784 | USD | 828 | 06/21/17 | (28 | ) |
Royal Bank of Canada | GBP | 3,022 | USD | 3,717 | 06/21/17 | (203 | ) |
Royal Bank of Canada | JPY | 40,000 | USD | 360 | 06/21/17 | 1 | |
Royal Bank of Canada | JPY | 196,308 | USD | 1,725 | 06/21/17 | (39 | ) |
Royal Bank of Canada | NOK | 5,030 | USD | 595 | 06/21/17 | 9 | |
Royal Bank of Canada | SEK | 4,860 | USD | 540 | 06/21/17 | (10 | ) |
Standard Chartered | USD | 981 | AUD | 1,285 | 06/21/17 | (20 | ) |
Standard Chartered | USD | 2,878 | AUD | 3,768 | 06/21/17 | (59 | ) |
Standard Chartered | USD | 1,209 | CAD | 1,612 | 06/21/17 | (27 | ) |
Standard Chartered | USD | 3,201 | CAD | 4,268 | 06/21/17 | (72 | ) |
Standard Chartered | USD | 3,830 | EUR | 3,620 | 06/21/17 | 123 | |
Standard Chartered | USD | 715 | GBP | 581 | 06/21/17 | 38 | |
Standard Chartered | USD | 418 | HKD | 3,240 | 06/21/17 | (1 | ) |
Standard Chartered | USD | 4,741 | JPY | 538,328 | 06/21/17 | 97 | |
Standard Chartered | USD | 263 | NZD | 370 | 06/21/17 | (9 | ) |
Standard Chartered | CHF | 3,744 | USD | 3,728 | 06/21/17 | (46 | ) |
Standard Chartered | DKK | 6,180 | USD | 880 | 06/21/17 | (27 | ) |
Standard Chartered | EUR | 784 | USD | 829 | 06/21/17 | (27 | ) |
Standard Chartered | GBP | 3,022 | USD | 3,719 | 06/21/17 | (200 | ) |
Standard Chartered | JPY | 196,308 | USD | 1,729 | 06/21/17 | (36 | ) |
Standard Chartered | NOK | 5,030 | USD | 597 | 06/21/17 | 11 | |
Standard Chartered | SEK | 4,860 | USD | 540 | 06/21/17 | (10 | ) |
State Street | USD | 757 | AUD | 1,000 | 06/21/17 | (8 | ) |
State Street | USD | 375 | CAD | 500 | 06/21/17 | (9 | ) |
State Street | USD | 746 | CAD | 1,000 | 06/21/17 | (13 | ) |
State Street | USD | 4,287 | EUR | 4,000 | 06/21/17 | 81 | |
State Street | USD | 5,440 | JPY | 600,000 | 06/21/17 | (47 | ) |
State Street | GBP | 1,000 | USD | 1,252 | 06/21/17 | (45 | ) |
UBS | USD | 2,297 | DKK | 16,000 | 06/21/17 | 53 | |
UBS | USD | 70 | NZD | 100 | 06/21/17 | (2 | ) |
UBS | USD | 2,015 | SEK | 18,000 | 06/21/17 | 23 | |
UBS | EUR | 2,600 | USD | 2,772 | 06/21/17 | (67 | ) |
UBS | GBP | 1,000 | USD | 1,252 | 06/21/17 | (45 | ) |
UBS | GBP | 2,250 | USD | 2,773 | 06/21/17 | (145 | ) |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (1,629 | ) |
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ | 2,896 | $ | — | $ | — | $ | — | $ | 2,896 | 0.3 | |||||
Australia | — | 14,720 | — | — | 14,720 | 1.7 | ||||||||||
Austria | — | 890 | — | — | 890 | 0.1 |
See accompanying notes which are an integral part of the financial statements.
280 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Belgium | — | 4,845 | — | — | 4,845 | 0.6 | ||||||||||
Bermuda | 219 | 621 | — | — | 840 | 0.1 | ||||||||||
Brazil | 23,794 | — | — | — | 23,794 | 2.8 | ||||||||||
Canada | 26,459 | — | — | — | 26,459 | 3.1 | ||||||||||
Cayman Islands | 4,672 | 7,613 | — | — | 12,285 | 1.4 | ||||||||||
Chile | 1,350 | — | — | — | 1,350 | 0.2 | ||||||||||
China | 12,523 | 27,724 | — | — | 40,247 | 4.7 | ||||||||||
Curacao | — | 64 | — | — | 64 | —* | ||||||||||
Denmark | — | 10,286 | — | — | 10,286 | 1.2 | ||||||||||
Egypt | — | 914 | — | — | 914 | 0.1 | ||||||||||
Finland | — | 2,159 | — | — | 2,159 | 0.2 | ||||||||||
France | — | 61,610 | — | — | 61,610 | 7.2 | ||||||||||
Germany | — | 30,019 | — | — | 30,019 | 3.5 | ||||||||||
Greece | — | 1,412 | — | — | 1,412 | 0.2 | ||||||||||
Hong Kong | 5,428 | 17,469 | — | — | 22,897 | 2.7 | ||||||||||
Hungary | — | 1,749 | — | — | 1,749 | 0.2 | ||||||||||
India | 7,251 | 11,512 | — | — | 18,763 | 2.2 | ||||||||||
Indonesia | — | 3,228 | — | — | 3,228 | 0.4 | ||||||||||
Ireland | 3,113 | 498 | — | — | 3,611 | 0.4 | ||||||||||
Israel | — | 1,415 | — | — | 1,415 | 0.2 | ||||||||||
Italy | — | 11,698 | — | — | 11,698 | 1.4 | ||||||||||
Japan | — | 91,765 | — | — | 91,765 | 10.7 | ||||||||||
Jersey | — | 2,352 | — | — | 2,352 | 0.3 | ||||||||||
Kazakhstan | 237 | — | — | — | 237 | —* | ||||||||||
Luxembourg | 669 | 1,701 | — | — | 2,370 | 0.3 | ||||||||||
Malaysia | — | 668 | — | — | 668 | 0.1 | ||||||||||
Mexico | 12,558 | — | — | — | 12,558 | 1.5 | ||||||||||
Netherlands | 3,835 | 15,644 | — | — | 19,479 | 2.3 | ||||||||||
New Zealand | — | 146 | — | — | 146 | —* | ||||||||||
Norway | — | 3,356 | — | — | 3,356 | 0.4 | ||||||||||
Peru | 851 | — | — | — | 851 | 0.1 | ||||||||||
Philippines | — | 811 | — | — | 811 | 0.1 | ||||||||||
Poland | — | 1,784 | — | — | 1,784 | 0.2 | ||||||||||
Portugal | — | 702 | — | — | 702 | 0.1 | ||||||||||
Russia | 523 | 13,597 | — | — | 14,120 | 1.6 | ||||||||||
Singapore | — | 7,542 | — | — | 7,542 | 0.9 | ||||||||||
South Africa | — | 3,186 | — | — | 3,186 | 0.4 | ||||||||||
South Korea | 2,906 | 48,712 | — | — | 51,618 | 6.0 | ||||||||||
Spain | — | 7,465 | — | — | 7,465 | 0.9 | ||||||||||
Sweden | — | 11,704 | — | — | 11,704 | 1.4 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 281
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Switzerland | 1,196 | 70,417 | — | — | 71,613 | 8.3 | ||||||||||||
Taiwan | 10,887 | 18,631 | — | — | 29,518 | 3.4 | ||||||||||||
Thailand | — | 3,042 | — | — | 3,042 | 0.3 | ||||||||||||
Turkey | 167 | 2,992 | — | — | 3,159 | 0.4 | ||||||||||||
Ukraine | — | 15 | — | — | 15 | —* | ||||||||||||
United Arab Emirates | — | 2,585 | — | — | 2,585 | 0.3 | ||||||||||||
United Kingdom | 2,536 | 126,336 | — | — | 128,872 | 15.0 | ||||||||||||
United States | 8,124 | 426 | — | — | 8,550 | 1.0 | ||||||||||||
Virgin Islands, British | 351 | — | — | — | 351 | —* | ||||||||||||
Preferred Stocks | 421 | 7,450 | — | — | 7,871 | 0.9 | ||||||||||||
Warrants & Rights | — | 1,920 | — | — | 1,920 | 0.2 | ||||||||||||
Short-Term Investments | — | — | — | 52,349 | 52,349 | 6.1 | ||||||||||||
Total Investments | 132,966 | 655,395 | — | 52,349 | 840,710 | 98.1 | ||||||||||||
Other Assets and Liabilities, Net | 1.9 | |||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 3,876 | — | — | — | 3,876 | 0.5 | ||||||||||||
Foreign Currency Exchange Contracts | — | 1,645 | — | — | 1,645 | 0.2 | ||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (1,972 | ) | — | — | — | (1,972 | ) | (0.2 | ) | |||||||||
Foreign Currency Exchange Contracts | — | (3,274 | ) | — | — | (3,274 | ) | (0.4 | ) | |||||||||
Total Other Financial Instruments** | $ | 1,904 | $ | (1,629 | ) | $ | — | $ | — | $ | 275 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Amounts in thousands | |||
Fair Value | |||
Sector Exposure | $ | ||
Consumer Discretionary | 108,635 | ||
Consumer Staples | 65,011 | ||
Energy | 51,907 | ||
Financial Services | 178,296 | ||
Health Care | 59,093 |
See accompanying notes which are an integral part of the financial statements.
282 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Materials and Processing | 73,598 | ||
Producer Durables | 111,199 | ||
Short-Term Investments | 52,349 | ||
Technology | 91,592 | ||
Utilities | 47,110 | ||
Warrants and Rights | 1,920 | ||
Total Investments | 840,710 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 283
Russell Investment Company
Tax-Managed International Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||
Equity | Currency | |||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||
Location: Statement of Assets and Liabilities - Assets | ||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 1,645 | ||
Variation margin on futures contracts* | 3,876 | — | ||||
Total | $ | 3,876 | $ | 1,645 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||||
Variation margin on futures contracts* | $ | 1,972 | $ | — | ||
Unrealized depreciation on foreign currency exchange contracts | — | 3,274 | ||||
Total | $ | 1,972 | $ | 3,274 | ||
Foreign | ||||||
Equity | Currency | |||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||
Location: Statement of Operations - Net realized gain (loss) | ||||||
Futures contracts | $ | 6,358 | $ | — | ||
Foreign currency-related transactions** | — | (1,934 | ) | |||
Total | $ | 6,358 | $ | (1,934 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||
Futures contracts | $ | 608 | $ | — | ||
Foreign currency-related transactions*** | — | (2,462 | ) | |||
Total | $ | 608 | $ | (2,462 | ) |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
284 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | $ | 1,645 | $ | — | $ | 1,645 | ||
Futures Contracts | Variation margin on futures contracts | 259 | — | 259 | |||||
Total Financial and Derivative Assets | 1,904 | — | 1,904 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (258) | — | (258 | ) | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 1,646 | $ | — | $ | 1,646 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Assets | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||
Bank of America | $ | 103 | $ | 103 | $ | — | $ | — | ||
Bank of Montreal | 270 | 270 | — | — | ||||||
BNP Paribas | 293 | 293 | — | — | ||||||
Brown Brothers Harriman | 1 | — | — | 1 | ||||||
Commonwealth Bank of Australia | 264 | 264 | — | — | ||||||
Royal Bank of Canada | 289 | 289 | — | — | ||||||
Standard Chartered | 270 | 270 | — | — | ||||||
State Street | 81 | 81 | — | — | ||||||
UBS | 75 | 75 | — | — | ||||||
Total | $ | 1,646 | $ | 1,645 | $ | — | $ | 1 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 285
Russell Investment Company
Tax-Managed International Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 615 | $ | — | $ | 615 | ||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 3,274 | — | 3,274 | |||||
Total Financial and Derivative Liabilities | 3,889 | — | 3,889 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (615) | — | (615 | ) | |||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 3,274 | $ | — | $ | 3,274 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Liabilities | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | ||||||
Bank of America | $ | 265 | $ | 103 | $ | — | $ | 162 | ||
Bank of Montreal | 543 | 270 | — | 273 | ||||||
BNP Paribas | 513 | 293 | — | 220 | ||||||
Commonwealth Bank of Australia | 526 | 264 | — | 262 | ||||||
Royal Bank of Canada | 512 | 289 | — | 223 | ||||||
Standard Chartered | 535 | 270 | — | 265 | ||||||
State Street | 122 | 81 | — | 41 | ||||||
UBS | 258 | 75 | — | 183 | ||||||
Total | $ | 3,274 | $ | 1,645 | $ | — | $ | 1,629 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
286 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 724,675 |
Investments, at fair value(>) | 840,710 | |
Cash | 188 | |
Cash (restricted)(a) | 9,768 | |
Foreign currency holdings(^) | 4,502 | |
Unrealized appreciation on foreign currency exchange contracts | 1,645 | |
Receivables: | ||
Dividends and interest | 2,270 | |
Dividends from affiliated funds | 44 | |
Investments sold | 21 | |
Fund shares sold | 2,298 | |
Foreign capital gains taxes recoverable | 668 | |
Variation margin on futures contracts | 259 | |
Prepaid expenses | 7 | |
Total assets | 862,380 | |
Liabilities | ||
Payables: | ||
Investments purchased | 12 | |
Fund shares redeemed | 691 | |
Accrued fees to affiliates | 699 | |
Other accrued expenses | 175 | |
Variation margin on futures contracts | 615 | |
Deferred capital gains tax liability | 239 | |
Unrealized depreciation on foreign currency exchange contracts | 3,274 | |
Total liabilities | 5,705 | |
Net Assets | $ | 856,675 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 287
Russell Investment Company
Tax-Managed International Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 2,425 | |
Accumulated net realized gain (loss) | (71,861 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 115,796 | ||
Futures contracts | 1,904 | ||
Foreign currency-related transactions | (1,595 | ) | |
Shares of beneficial interest | 856 | ||
Additional paid-in capital | 809,150 | ||
Net Assets | $ | 856,675 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 9.98 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 10.59 | |
Class A — Net assets | $ | 6,469,452 | |
Class A — Shares outstanding ($.01 par value) | 648,243 | ||
Net asset value per share: Class C(#) | $ | 9.93 | |
Class C — Net assets | $ | 3,060,854 | |
Class C — Shares outstanding ($.01 par value) | 308,254 | ||
Net asset value per share: Class E(#) | $ | 9.99 | |
Class E — Net assets | $ | 652,348 | |
Class E — Shares outstanding ($.01 par value) | 65,295 | ||
Net asset value per share: Class S(#) | $ | 10.01 | |
Class S — Net assets | $ | 841,436,949 | |
Class S — Shares outstanding ($.01 par value) | 84,051,642 | ||
Net asset value per share: Class T(#) | $ | 10.01 | |
Class T — Net assets | $ | 5,055,843 | |
Class T — Shares outstanding ($.01 par value) | 504,848 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 4,479 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 52,349 | |
(a) Cash Collateral for Futures | $ | 9,768 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
288 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 8,850 | |
Dividends from affiliated funds | 191 | ||
Interest | 238 | ||
Less foreign taxes withheld | (959 | ) | |
Total investment income | 8,320 | ||
Expenses | |||
Advisory fees | 3,008 | ||
Administrative fees | 171 | ||
Custodian fees | 156 | ||
Distribution fees - Class A | 6 | ||
Distribution fees - Class C | 10 | ||
Transfer agent fees - Class A | 5 | ||
Transfer agent fees - Class C | 3 | ||
Transfer agent fees - Class E | 15 | ||
Transfer agent fees - Class S | 685 | ||
Transfer agent fees - Class T | —** | ||
Professional fees | 44 | ||
Registration fees | 48 | ||
Shareholder servicing fees - Class C | 3 | ||
Shareholder servicing fees - Class E | 18 | ||
Trustees’ fees | 8 | ||
Printing fees | 18 | ||
Miscellaneous | 8 | ||
Expenses before reductions | 4,206 | ||
Expense reductions | (311 | ) | |
Net expenses | 3,895 | ||
Net investment income (loss) | 4,425 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 1,736 | ||
Futures contracts | 6,358 | ||
Foreign currency-related transactions | (1,899 | ) | |
Net realized gain (loss) | 6,195 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 68,083 | ||
Futures contracts | 608 | ||
Foreign currency-related transactions | (732 | ) | |
Net change in unrealized appreciation (depreciation) | 67,959 | ||
Net realized and unrealized gain (loss) | 74,154 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 78,579 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 289
Russell Investment Company
Tax-Managed International Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 4,425 | $ | 8,554 | ||
Net realized gain (loss) | 6,195 | (35,172 | ) | |||
Net change in unrealized appreciation (depreciation) | 67,959 | 45,666 | ||||
Net increase (decrease) in net assets from operations | 78,579 | 19,048 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (92 | ) | (11 | ) | ||
Class C | (39 | ) | (5 | ) | ||
Class E | (652 | ) | (165 | ) | ||
Class S | (13,555 | ) | (2,463 | ) | ||
Net decrease in net assets from distributions | (14,338 | ) | (2,644 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 162,688 | 167,477 | ||||
Total Net Increase (Decrease) in Net Assets | 226,929 | 183,881 | ||||
Net Assets | ||||||
Beginning of period | 629,746 | 445,865 | ||||
End of period | $ | 856,675 | $ | 629,746 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 2,425 | $ | 12,338 |
See accompanying notes which are an integral part of the financial statements.
290 Tax-Managed International Equity Fund
Russell Investment Company
Tax-Managed International Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 244 | $ | 2,303 | 368 | $ | 3,301 | ||||||
Proceeds from reinvestment of distributions | 10 | 84 | 1 | 10 | ||||||||
Payments for shares redeemed | (35 | ) | (324 | ) | (43 | ) | (384 | ) | ||||
Net increase (decrease) | 219 | 2,063 | 326 | 2,927 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 96 | 900 | 187 | 1,633 | ||||||||
Proceeds from reinvestment of distributions | 4 | 37 | — | 5 | ||||||||
Payments for shares redeemed | (59 | ) | (567 | ) | (56 | ) | (500 | ) | ||||
Net increase (decrease) | 41 | 370 | 131 | 1,138 | ||||||||
Class E | ||||||||||||
Proceeds from shares sold | 134 | 1,210 | 693 | 6,054 | ||||||||
Proceeds from reinvestment of distributions | 73 | 650 | 19 | 164 | ||||||||
Payments for shares redeemed | (3,735 | ) | (34,535 | ) | (346 | ) | (3,011 | ) | ||||
Net increase (decrease) | (3,528 | ) | (32,675 | ) | 366 | 3,207 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 27,906 | 263,455 | 32,355 | 281,200 | ||||||||
Proceeds from reinvestment of distributions | 1,509 | 13,491 | 285 | 2,451 | ||||||||
Payments for shares redeemed | (9,438 | ) | (88,940 | ) | (14,098 | ) | (123,446 | ) | ||||
Net increase (decrease) | 19,977 | 188,006 | 18,542 | 160,205 | ||||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 507 | 4,942 | — | — | ||||||||
Payments for shares redeemed | (2 | ) | (18 | ) | — | — | ||||||
Net increase (decrease) | 505 | 4,924 | — | — | ||||||||
Total increase (decrease) | 17,214 | $ | 162,688 | 19,365 | $ | 167,477 | ||||||
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 291
Russell Investment Company
Tax-Managed International Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | ||||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | ||||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | $ | |||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Total Distributions | |||||||||||||
Class A | ||||||||||||||||||
April 30, 2017* | 9.19 | .05 | .93 | .98 | (.19 | ) | (.19 | ) | ||||||||||
October 31, 2016 | 9.09 | .13 | .02 | .15 | (.05 | ) | (.05 | ) | ||||||||||
October 31, 2015(7) | 10.00 | .03 | (.94 | ) | (.91 | ) | — | — | ||||||||||
Class C | ||||||||||||||||||
April 30, 2017* | 9.11 | .01 | .94 | .95 | (.13 | ) | (.13 | ) | ||||||||||
October 31, 2016 | 9.06 | .06 | .02 | .08 | (.03 | ) | (.03 | ) | ||||||||||
October 31, 2015(7) | 10.00 | (.01 | ) | (.93 | ) | (.94 | ) | — | — | |||||||||
Class E | ||||||||||||||||||
April 30, 2017* | 9.18 | —(f) | .99 | .99 | (.18 | ) | (.18 | ) | ||||||||||
October 31, 2016 | 9.09 | .12 | .02 | .14 | (.05 | ) | (.05 | ) | ||||||||||
October 31, 2015(7) | 10.00 | .02 | (.93 | ) | (.91 | ) | — | — | ||||||||||
Class S | ||||||||||||||||||
April 30, 2017* | 9.21 | .06 | .94 | 1.00 | (.20 | ) | (.20 | ) | ||||||||||
October 31, 2016 | 9.10 | .15 | .01 | .16 | (.05 | ) | (.05 | ) | ||||||||||
October 31, 2015(7) | 10.00 | .04 | (.94 | ) | (.90 | ) | — | — | ||||||||||
Class T | ||||||||||||||||||
April 30, 2017(10) | 9.77 | .03 | .21 | .24 | — | — | ||||||||||||
See accompanying notes which are an integral part of the financial statements.
292 Tax-Managed International Equity Fund
% | % | % | |||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||
End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||
Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | ||||||||
9.98 | 10.93 | 6,469 | 1.43 | 1.34 | 1.07 | 17 | |||||||||
9.19 | 1.71 | 3,943 | 1.48 | 1.34 | 1.43 | 85 | |||||||||
9.09 | (9.10 | ) | 935 | 1.50 | 1.34 | .66 | 79 | ||||||||
9.93 | 10.62 | 3,061 | 2.18 | 2.09 | .18 | 17 | |||||||||
9.11 | .89 | 2,441 | 2.23 | 2.09 | .71 | 85 | |||||||||
9.06 | (9.40 | ) | 1,239 | 2.25 | 2.09 | (.16 | ) | 79 | |||||||
9.99 | 11.02 | 652 | 1.42 | 1.32 | (.09 | ) | 17 | ||||||||
9.18 | 1.59 | 32,989 | 1.48 | 1.34 | 1.38 | 85 | |||||||||
9.09 | (9.10 | ) | 29,334 | 1.53 | 1.34 | .59 | 79 | ||||||||
10.01 | 11.15 | 841,437 | 1.18 | 1.09 | 1.28 | 17 | |||||||||
9.21 | 1.83 | 590,373 | 1.23 | 1.09 | 1.66 | 85 | |||||||||
9.10 | (9.00 | ) | 414,357 | 1.24 | 1.09 | .94 | 79 | ||||||||
10.01 | 2.56 | 5,056 | 1.18 | .99 | 2.55 | 17 |
See accompanying notes which are an integral part of the financial statements.
Tax-Managed International Equity Fund 293
Russell Investment Company
Tax-Managed International Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017were as follows: | ||
Advisory fees | $ | 524,880 |
Administration fees | 32,900 | |
Distribution fees | 3,023 | |
Shareholder servicing fees | 714 | |
Transfer agent fees | 136,114 | |
Trustee fees | 1,654 | |
$ | 699,285 |
Transactions (amounts in thousands) during the period ended April 30, 2017with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Management Fund | $ | 36,675 | $ | 252,679 | $ | 237,002 | $ | 1 | $ | (4) | $ | 52,349 | $ | 191 | $ | — | ||
$ | 36,675 | $ | 252,679 | $ | 237,002 | $ | 1 | $ | (4) | $ | 52,349 | $ | 191 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 727,988,160 | |||
Unrealized Appreciation | $ | 118,481,068 | |||
Unrealized Depreciation | (5,759,342 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 112,721,726 |
See accompanying notes which are an integral part of the financial statements.
294 Tax-Managed International Equity Fund
Russell Investment Company
Global Opportunistic Credit Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,036.50 | $ | 1,019.19 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 5.71 | $ | 5.66 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.13% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,032.10 | $ | 1,015.47 | |
Expenses Paid During Period* | $ | 9.47 | $ | 9.39 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.88% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,036.60 | $ | 1,019.29 | |
of other funds. | Expenses Paid During Period* | $ | 5.61 | $ | 5.56 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.11% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Global Opportunistic Credit Fund 295
Russell Investment Company
Global Opportunistic Credit Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class S | Performance | expenses) | ||
Beginning Account Value | ||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,037.70 | $ | 1,020.43 |
Expenses Paid During Period* | $ | 4.45 | $ | 4.41 |
* Expenses are equal to the Fund's annualized expense ratio of 0.88%
(representing the six month period annualized), multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half
year period). May reflect amounts waived and/or reimbursed. Without any
waivers and/or reimbursements, expenses would have been higher.
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class T | Performance | expenses) | ||
Beginning Account Value | ||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,022.40 | $ | 1,020.68 |
Expenses Paid During Period* | $ | 1.03 | $ | 4.16 |
* Expenses are equal to the Fund's annualized expense ratio of 0.83%
(representing the 45-day period annualized), multiplied by the average
account value over the period, multiplied by 45/365 (to reflect the period since
commencement of operations). May reflect amounts waived and/or reimbursed.
Without any waivers and/or reimbursements, expenses would have been higher.
Hypothetical expenses are equal to the Fund’s annualized expense ratio of
0.83% (representing the six-month period annualized), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
on-half year period).
Hypothetical | ||||
Performance (5% | ||||
Actual | return before | |||
Class Y | Performance | expenses) | ||
Beginning Account Value | ||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 |
Ending Account Value | ||||
April 30, 2017 | $ | 1,038.10 | $ | 1,020.83 |
Expenses Paid During Period* | $ | 4.04 | $ | 4.01 |
* Expenses are equal to the Fund's annualized expense ratio of 0.80%
(representing the six month period annualized), multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half
year period). May reflect amounts waived and/or reimbursed. Without any
waivers and/or reimbursements, expenses would have been higher.
296 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Long-Term Fixed Income Investments - 87.4% | 4.500% due 04/15/22 | 95 | 90 | ||||||||
Argentina - 1.4% | 8.250% due 06/15/23 | 90 | 98 | ||||||||
Argentine Bonos del Tesoro | 6.750% due 09/15/40 | 585 | 553 | ||||||||
15.500% due 10/17/26 | ARS | 41,860 | 3,018 | ||||||||
Argentine Republic Government | 3,956 | ||||||||||
International Bond | Brazil - 2.2% | ||||||||||
7.500% due 04/22/26 | 3,136 | 3,435 | Brazil Letras do Tesouro Nacional | ||||||||
6.875% due 01/26/27 | 3,000 | 3,169 | Series LTN | ||||||||
7.820% due 12/31/33 | EUR | 4,679 | 5,426 | 9.324% due 10/01/18 | BRL | 2,950 | 819 | ||||
1.000% due 12/15/35 (Ê) | EUR | 60,000 | 6,220 | 9.309% due 01/01/19 | BRL | 39,980 | 10,852 | ||||
7.125% due 07/06/36 | 1,000 | 1,012 | 11.363% due 01/01/20 | BRL | 13,480 | 3,314 | |||||
7.625% due 04/22/46 | 1,268 | 1,350 | Brazil Notas do Tesouro Nacional | ||||||||
Provincia de Buenos Aires | Series NTNB | ||||||||||
7.875% due 06/15/27 (Þ) | 300 | 313 | 6.000% due 05/15/35 | BRL | 1,200 | 1,238 | |||||
Republic of Aregentina Governemnt | 6.000% due 08/15/50 | BRL | 2,500 | 2,626 | |||||||
International Bond | Series NTNF | ||||||||||
21.200% due 09/19/18 | ARS | 1,560 | 106 | 10.000% due 01/01/21 | BRL | 12,890 | 4,202 | ||||
21.940% due 03/11/19 (Ê) | ARS | 770 | 53 | 10.000% due 01/01/23 | BRL | 15,150 | 4,899 | ||||
YPF SA | 10.000% due 01/01/25 | BRL | 11,560 | 3,712 | |||||||
8.750% due 04/04/24 (Þ) | 2,000 | 2,309 | 10.000% due 01/01/27 | BRL | 7,700 | 2,461 | |||||
26,411 | JBS USA LLC | ||||||||||
Australia - 0.1% | 7.250% due 06/01/21 (Þ) | 1,090 | 1,120 | ||||||||
Australia and New Zealand Banking | 5.875% due 07/15/24 (Þ) | 120 | 125 | ||||||||
Group, Ltd. | Letra do Tesouro Nacional Bills | ||||||||||
1.816% due 09/23/19 (Ê)(Þ) | 1,250 | 1,258 | |||||||||
FMG Resources Pty, Ltd. 1st Lien Term | Series LTN | ||||||||||
Loan B | 9.221% due 07/01/18 | BRL | 8,360 | 2,376 | |||||||
3.750% due 06/30/19 | 200 | 201 | Vale SA | ||||||||
National Australia Bank , Ltd. | 5.625% due 09/11/42 | 1,600 | 1,524 | ||||||||
1.796% due 12/09/19 (Ê)(Þ) | 250 | 252 | 39,268 | ||||||||
1,711 | Canada – 2.8% | ||||||||||
1011778 B.C. Unlimited Liability Co. | |||||||||||
Austria - 0.1% | 1st Lien Term Loan B | ||||||||||
Raiffeisen Bank International AG | 3.397% due 02/17/24 (Ê) | 1,678 | 1,679 | ||||||||
6.000% due 10/16/23 | EUR | 400 | 507 | Bank of Montreal | |||||||
RZB Finance Jersey IV, Ltd. | 1.367% due 08/16/18 (Ê)(~) | 1,800 | 1,800 | ||||||||
1.622% due 05/29/49 (ƒ) | EUR | 400 | 416 | Series MTN | |||||||
923 | 1.808% due 07/18/19 (Ê) | 1,100 | 1,106 | ||||||||
Azerbaijan - 0.1% | Bank of Nova Scotia (The) | ||||||||||
State Oil Co. of the Azerbaijan Republic | 1.590% due 06/11/18 (Ê) | 1,700 | 1,705 | ||||||||
Series EMTN | Canadian Imperial Bank of Commerce | ||||||||||
4.750% due 03/13/23 | 2,000 | 1,981 | 1.545% due 07/13/18 (Ê) | 3,250 | 3,249 | ||||||
Cascades, Inc. | |||||||||||
Bahrain - 0.1% | 5.750% due 07/15/23 (Þ) | 1,245 | 1,264 | ||||||||
Bahrain Government International Bond | Cenovus Energy, Inc. | ||||||||||
7.000% due 01/26/26 (Þ) | 2,000 | 2,140 | 5.700% due 10/15/19 | 2,065 | 2,221 | ||||||
6.750% due 11/15/39 | 390 | 438 | |||||||||
Belgium - 0.1% | Cott Corp. | ||||||||||
BNP Paribas Fortis SA | 5.500% due 07/01/24 (Þ) | EUR | 800 | 932 | |||||||
1.671% due 12/29/49 (ƒ) | EUR | 750 | 596 | Series REGS | |||||||
Ethias SA | 5.500% due 07/01/24 | EUR | 1,070 | 1,247 | |||||||
5.000% due 01/14/26 | EUR | 1,000 | 1,112 | Eldorado Gold Corp. | |||||||
1,708 | 5.250% due 12/15/20 (Þ) | 1,260 | 1,295 | ||||||||
Bermuda - 0.2% | First Quantum Minerals, Ltd. | ||||||||||
Catlin Insurance Co., Ltd. | 7.250% due 05/15/22 (Þ) | 1,055 | 1,087 | ||||||||
4.133% due 12/31/49 (ƒ)(Þ) | 440 | 405 | 7.250% due 04/01/23 (Þ) | 580 | 591 | ||||||
Weatherford International, Ltd. | Hudbay Minerals, Inc. | ||||||||||
9.625% due 03/01/19 | 1,950 | 2,144 | 7.250% due 01/15/23 (Þ) | 1,005 | 1,069 | ||||||
7.750% due 06/15/21 | 625 | 666 | Kinross Gold Corp. |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 297
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
5.950% due 03/15/24 | 1,265 | 1,356 | Transocean, Inc. | ||||||||
Lions Gate Entertainment Corp. | 7.500% due 04/15/31 | 190 | 169 | ||||||||
5.875% due 11/01/24 (Þ) | 132 | 137 | UPCB Finance IV, Ltd. | ||||||||
MEG Energy Corp. | Series REGS | ||||||||||
6.375% due 01/30/23 (Þ) | 1,160 | 1,021 | 4.000% due 01/15/27 | EUR | 1,390 | 1,566 | |||||
7.000% due 03/31/24 (Þ) | 4,610 | 4,114 | 5,734 | ||||||||
Mood Media Corp. Term Loan | Chile - 0.3% | ||||||||||
7.148% due 05/01/19 (Ê) | 1,702 | 1,700 | Chile Bonos de la Tesoreria | ||||||||
Open Text Corp. | 4.500% due 03/01/26 | CLP | 1,495,000 | 2,365 | |||||||
5.625% due 01/15/23 (Þ) | 830 | 869 | Corp. Nacional del Cobre de Chile | ||||||||
5.875% due 06/01/26 (Þ) | 297 | 317 | 4.875% due 11/04/44 (Þ) | 4,000 | 4,075 | ||||||
Parq Holdings, LP Term Loan | 6,440 | ||||||||||
8.500% due 12/17/20 (Ê) | 4,230 | 4,208 | China - 0.3% | ||||||||
Precision Drilling Corp. | China Evergrande Group | ||||||||||
6.500% due 12/15/21 | 1,165 | 1,180 | |||||||||
7.750% due 12/15/23 (Þ) | 70 | 74 | Series REGS | ||||||||
8.750% due 10/30/18 | 4,500 | 4,666 | |||||||||
Province of Ontario Canada | |||||||||||
3.000% due 07/16/18 | 1,000 | 1,018 | Country Garden Holdings Co., Ltd. | ||||||||
1.650% due 09/27/19 | 600 | 599 | Series REGS | ||||||||
7.250% due 04/04/21 | 300 | 314 | |||||||||
Province of Quebec Canada | |||||||||||
Series MTN | 4,980 | ||||||||||
1.330% due 09/04/18 (Ê) | 450 | 450 | Colombia - 1.4% | ||||||||
Colombia Government International | |||||||||||
Ritchie Bros. Auctioneers, Inc. | Bond | ||||||||||
5.375% due 01/15/25 (Þ) | 358 | 370 | 7.750% due 04/14/21 | COP | 4,905,000 | 1,793 | |||||
Royal Bank of Canada | 4.000% due 02/26/24 | 1,000 | 1,033 | ||||||||
Series GMTN | 3.875% due 04/25/27 | 300 | 303 | ||||||||
2.150% due 03/15/19 | 2,000 | 2,012 | 9.850% due 06/28/27 | COP | 2,077,000 | 927 | |||||
Teck Resources, Ltd. | 10.375% due 01/28/33 | 514 | 776 | ||||||||
3.750% due 02/01/23 | 1,000 | 985 | 7.375% due 09/18/37 | 3,000 | 3,858 | ||||||
8.500% due 06/01/24 (Þ) | 820 | 950 | 6.125% due 01/18/41 | 600 | 690 | ||||||
6.125% due 10/01/35 | 1,300 | 1,375 | 5.000% due 06/15/45 | 500 | 505 | ||||||
6.000% due 08/15/40 | 455 | 468 | Colombian TES | ||||||||
Teine Energy, Ltd. | Series B | ||||||||||
6.875% due 09/30/22 (Þ) | 1,210 | 1,234 | 10.000% due 07/24/24 | COP | 7,554,000 | 3,142 | |||||
Toronto-Dominion Bank (The) | 7.500% due 08/26/26 | COP | 4,054,000 | 1,500 | |||||||
Series MTN | 6.000% due 04/28/28 | COP | 14,023,000 | 4,591 | |||||||
1.993% due 01/22/19 (Ê) | 1,150 | 1,162 | Colombian Titulos de Tesoreria | ||||||||
Valeant Pharmaceuticals International, | |||||||||||
Inc. | Series B | ||||||||||
5.625% due 12/01/21 (Þ) | 3,535 | 2,718 | 11.000% due 07/24/20 | COP | 8,365,000 | 3,273 | |||||
6.500% due 03/15/22 (Þ) | 453 | 464 | 7.000% due 05/04/22 | COP | 7,841,000 | 2,799 | |||||
5.875% due 05/15/23 (Þ) | 930 | 687 | Ecopetrol SA | ||||||||
7.000% due 03/15/24 (Þ) | 85 | 87 | 5.875% due 09/18/23 | 300 | 325 | ||||||
Veresen Midstream, Ltd. Term Loan B2 | 25,515 | ||||||||||
4.500% due 03/31/22 (Ê) | 992 | 999 | Costa Rica - 0.3% | ||||||||
Costa Rica Government International | |||||||||||
50,237 | Bond | ||||||||||
Cayman Islands - 0.3% | 4.375% due 04/30/25 (Þ) | 2,044 | 1,952 | ||||||||
Harbourview CLO VII, Ltd. | 7.000% due 04/04/44 (Þ) | 3,000 | 3,097 | ||||||||
Series 2014-7A Class E | Series REGS | ||||||||||
6.039% due 11/18/26 (Ê)(Þ) | 946 | 892 | 4.250% due 01/26/23 | 1,000 | 971 | ||||||
Noble Holding International, Ltd. | 6,020 | ||||||||||
4.900% due 08/01/20 | 149 | 144 | Croatia - 0.3% | ||||||||
7.700% due 04/01/25 | 460 | 414 | |||||||||
8.700% due 04/01/45 | 775 | 676 | Croatia Government International Bond | ||||||||
6.000% due 01/26/24 (Þ) | 2,200 | 2,449 | |||||||||
Park Aerospace Holdings, Ltd. | Series REGS | ||||||||||
5.250% due 08/15/22 (Þ) | 233 | 246 | 6.625% due 07/14/20 | 1,200 | 1,321 | ||||||
5.500% due 02/15/24 (Þ) | 1,538 | 1,627 |
See accompanying notes which are an integral part of the financial statements.
298 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
6.000% due 01/26/24 | 2,000 | 2,226 | Series REGS | ||||||||
5,996 | 6.637% due 05/29/49 (ƒ) | 742 | 703 | ||||||||
Czech Republic - 0.1% | Credit Logement SA | ||||||||||
Czech Republic Government | 0.820% due 03/29/49 (ƒ) | EUR | 1,250 | 1,134 | |||||||
International Bond | Crown European Holdings SA | ||||||||||
2.500% due 08/25/28 | CZK | 31,780 | 1,483 | Series REGS | |||||||
4.000% due 07/15/22 | EUR | 1,420 | 1,727 | ||||||||
Denmark - 0.2% | Elis SA | ||||||||||
Danske Bank A/S | Series REGS | ||||||||||
1.574% due 03/02/20 (Ê)(Þ) | 1,200 | 1,200 | 3.000% due 04/30/22 | EUR | 2,430 | 2,735 | |||||
4.513% due 12/29/49 (ƒ) | DKK | 4,000 | 612 | ||||||||
6.125% due 12/31/99 (ƒ) | 800 | 820 | Groupama SA | ||||||||
6.375% due 05/29/49 (ƒ) | EUR | 800 | 911 | ||||||||
Sparekassen Sjaelland-Fyn AS | Holding Medi-Partenaires SAS | ||||||||||
10.835% due 09/29/49 (Å)(ƒ) | DKK | 2,000 | 314 | 7.000% due 05/15/20 (Þ) | EUR | 970 | 1,095 | ||||
2,946 | Series REGS | ||||||||||
Dominican Republic - 0.6% | 7.000% due 05/15/20 | EUR | 1,910 | 2,156 | |||||||
Dominican Republic International Bond | HomeVi SAS | ||||||||||
7.450% due 04/30/44 (Þ) | 2,000 | 2,267 | Series REGS | ||||||||
6.850% due 01/27/45 (Þ) | 4,000 | 4,255 | 6.875% due 08/15/21 | EUR | 2,680 | 3,061 | |||||
Series REGS | Kerneos Corporate SAS | ||||||||||
7.500% due 05/06/21 | 4,000 | 4,440 | 5.750% due 03/01/21 (Þ) | EUR | 1,060 | 1,190 | |||||
10,962 | Series REGS | ||||||||||
Egypt - 0.5% | 5.750% due 03/01/21 | EUR | 1,505 | 1,690 | |||||||
Egypt Government International Bond | La Mondiale SAM | ||||||||||
5.875% due 06/11/25 (Þ) | 500 | 493 | 2.368% due 10/29/49 (Å)(ƒ) | EUR | 920 | 882 | |||||
6.875% due 04/30/40 (Þ) | 8,000 | 7,592 | 1.801% due 11/29/49 (Å)(ƒ) | EUR | 150 | 140 | |||||
Series REGS | Macif SA | ||||||||||
6.875% due 04/30/40 | 1,000 | 949 | 1.669% due 04/29/49 (Å)(ƒ) | EUR | 685 | 631 | |||||
9,034 | NewCo Sab MidCo SASU | ||||||||||
El Salvador - 0.4% | 5.375% due 04/15/25 (Þ) | EUR | 770 | 841 | |||||||
El Salvador Government International | Picard Groupe SAS | ||||||||||
Bond | 4.250% due 08/01/19 (Ê)(Þ) | EUR | 1,550 | 1,703 | |||||||
6.375% due 01/18/27 (Þ) | 1,500 | 1,339 | Series REGS | ||||||||
Series REGS | 4.250% due 08/01/19 (Ê) | EUR | 193 | 212 | |||||||
7.375% due 12/01/19 | 1,000 | 1,005 | Rexel SA | ||||||||
7.750% due 01/24/23 | 2,400 | 2,418 | 5.250% due 06/15/20 (Þ) | 2,109 | 2,161 | ||||||
5.875% due 01/30/25 | 2,500 | 2,237 | SFR Group SA | ||||||||
7.650% due 06/15/35 | 498 | 453 | Series REGS | ||||||||
7,452 | 5.625% due 05/15/24 | EUR | 4,205 | 4,941 | |||||||
Ethiopia - 0.1% | Societe Generale SA | ||||||||||
Ethiopia International Bond | 6.750% due 04/07/49 (ƒ) | EUR | 900 | 1,051 | |||||||
6.625% due 12/11/24 (Þ) | 1,000 | 988 | SPCM SA | ||||||||
2.875% due 06/15/23 (Þ) | EUR | 1,350 | 1,503 | ||||||||
Finland - 0.1% | Total Capital International SA | ||||||||||
Nokia OYJ | 1.502% due 06/19/19 (Ê) | 500 | 501 | ||||||||
6.625% due 05/15/39 | 1,000 | 1,093 | 36,320 | ||||||||
France - 2.0% | Gabon - 0.0% | ||||||||||
Gabon Government International Bond | |||||||||||
BNP Paribas SA | 6.375% due 12/12/24 (Þ) | 500 | 490 | ||||||||
6.500% due 06/29/49 (ƒ) | 1,500 | 1,521 | |||||||||
6.125% due 12/29/49 (ƒ) | EUR | 600 | 709 | Germany - 0.8% | |||||||
BPCE SA | |||||||||||
6.750% due 01/29/49 (ƒ) | 1,030 | 1,042 | Capital Funding GmbH | ||||||||
1.979% due 04/29/49 (ƒ) | EUR | 586 | 484 | ||||||||
Credit Agricole SA | |||||||||||
6.500% due 04/29/49 (ƒ) | EUR | 900 | 1,049 | Deutsche Postbank Funding Trust III | |||||||
0.658% due 06/29/49 (ƒ) | EUR | 800 | 656 | ||||||||
7.375% due 10/29/49 (ƒ) | 1,000 | 1,031 | |||||||||
DG Bank | |||||||||||
1.427% due 08/16/18 (Ê) | 1,915 | 1,915 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 299
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Fuerstenberg Capital II GMBH | Indonesia Government International | ||||||||||
5.625% due 06/29/49 (ƒ) | EUR | 1,092 | 928 | Bond | |||||||
HT1 Funding GmbH | Series REGS | ||||||||||
6.352% due 07/29/49 (ƒ) | EUR | 800 | 822 | 8.500% due 10/12/35 | 3,000 | 4,299 | |||||
Schaeffler Verwaltung Swei GmbH | 7.750% due 01/17/38 | 500 | 688 | ||||||||
3.250% due 09/15/23 (Þ) | EUR | 1,815 | 2,057 | Indonesia Treasury Bond | |||||||
Techem Energy Metering Service GmbH | Series FR56 | ||||||||||
& Co. KG | 8.375% due 09/15/26 | IDR | 41,971,000 | 3,423 | |||||||
7.875% due 10/01/20 (Þ) | EUR | 560 | 635 | Series FR58 | |||||||
Series REGS | 8.250% due 06/15/32 | IDR | 7,539,000 | 594 | |||||||
7.875% due 10/01/20 | EUR | 2,120 | 2,405 | Series FR59 | |||||||
Unitymedia GmbH | 7.000% due 05/15/27 | IDR | 11,955,000 | 894 | |||||||
Series REGS | Series FR64 | ||||||||||
3.750% due 01/15/27 | EUR | 1,815 | 2,000 | 6.125% due 05/15/28 | IDR | 7,739,000 | 529 | ||||
Unitymedia Hessen GmbH & Co. KG / | Series FR65 | ||||||||||
Unitymedia NRW GmbH | 6.625% due 05/15/33 | IDR | 2,495,000 | 169 | |||||||
Series REGS | Series FR68 | ||||||||||
5.750% due 01/15/23 | EUR | 275 | 317 | 8.375% due 03/15/34 | IDR | 43,800,000 | 3,487 | ||||
5.625% due 04/15/23 | EUR | 240 | 278 | ||||||||
4.000% due 01/15/25 | EUR | 2,420 | 2,773 | Series FR70 | |||||||
8.375% due 03/15/24 | IDR | 47,281,000 | 3,806 | ||||||||
15,270 | Series FR71 | ||||||||||
Ghana - 0.4% | 9.000% due 03/15/29 | IDR | 61,923,000 | 5,205 | |||||||
Ghana Government Bond | Series FR73 | ||||||||||
Series 3YR | 8.750% due 05/15/31 | IDR | 30,460,000 | 2,525 | |||||||
23.470% due 05/21/18 | GHS | 430 | 105 | Pertamina Persero PT | |||||||
Ghana Government International Bond | Series REGS | ||||||||||
7.875% due 08/07/23 (Þ) | 4,000 | 3,962 | 6.000% due 05/03/42 | 908 | 965 | ||||||
8.125% due 01/18/26 (Þ) | 700 | 691 | 6.450% due 05/30/44 | 4,000 | 4,512 | ||||||
10.750% due 10/14/30 (Þ) | 1,250 | 1,508 | Perusahaan Listrik Negara PT | ||||||||
Series 2YR | Series REGS | ||||||||||
22.500% due 12/10/18 | GHS | 470 | 114 | 5.250% due 10/24/42 | 2,350 | 2,344 | |||||
21.000% due 01/07/19 | GHS | 3,080 | 734 | ||||||||
33,440 | |||||||||||
Series 5YR | Iraq - 0.2% | ||||||||||
19.040% due 09/24/18 | GHS | 50 | 12 | ||||||||
Iraq International Bond | |||||||||||
7,126 | Series REGS | ||||||||||
Greece - 0.1% | 5.800% due 01/15/28 | 4,750 | 4,245 | ||||||||
Hellenic Republic Government Bond | |||||||||||
Series PSI | Ireland - 0.4% | ||||||||||
3.650% due 02/24/20 | EUR | 2,400 | 2,076 | Ardagh Packaging Finance PLC / | |||||||
Honduras - 0.2% | Ardagh Holdings USA, Inc. | ||||||||||
Honduras Government International | 6.750% due 05/15/24 (Þ) | EUR | 1,790 | 2,142 | |||||||
Bond | Series REGS | ||||||||||
Series REGS | 6.750% due 05/15/24 | EUR | 1,365 | 1,634 | |||||||
8.750% due 12/16/20 | 2,342 | 2,667 | Endo, Ltd. / Endo Finance LLC / Endo | ||||||||
7.500% due 03/15/24 | 500 | 554 | Finco, Inc. | ||||||||
3,221 | 6.000% due 07/15/23 (Þ) | 1,325 | 1,161 | ||||||||
Hungary - 0.7% | Permanent TSB PLC | ||||||||||
Hungary Government International Bond | 8.625% due 12/31/49 (ƒ) | EUR | 200 | 220 | |||||||
5.750% due 11/22/23 | 500 | 569 | Virgin Media Receivables Financing | ||||||||
5.375% due 03/25/24 | 650 | 729 | Notes | ||||||||
7.625% due 03/29/41 | 4,250 | 6,280 | Series REGS | ||||||||
5.500% due 09/15/24 | GBP | 600 | 816 | ||||||||
Series 25/B | Vnesheconombank Via VEB Finance | ||||||||||
5.500% due 06/24/25 | HUF | 964,850 | 3,941 | PLC | |||||||
OTP Bank Nyrt | Series REGS | ||||||||||
2.672% due 11/29/49 (ƒ) | EUR | 400 | 411 | 6.902% due 07/09/20 | 1,500 | 1,646 | |||||
11,930 | 7,619 | ||||||||||
Indonesia - 1.8% | Italy - 1.4% |
See accompanying notes which are an integral part of the financial statements.
300 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Assicurazioni Generali SpA | Lincoln Finance, Ltd. | ||||||||||
7.750% due 12/12/42 | EUR | 800 | 1,069 | Series REGS | |||||||
5.000% due 06/08/48 | EUR | 600 | 683 | 6.875% due 04/15/21 | EUR | 1,180 | 1,382 | ||||
Banca Farmafactoring SpA | Main Capital Funding II, LP | ||||||||||
5.875% due 03/02/27 | EUR | 900 | 976 | 5.750% due 12/29/49 (ƒ) | EUR | 800 | 889 | ||||
Banca Monte dei Paschi di Siena SpA | Mercury Bondco | ||||||||||
3.625% due 04/01/19 | EUR | 400 | 431 | 7.125% due 05/30/21 (Þ) | EUR | 775 | 867 | ||||
5.000% due 04/21/20 | EUR | 800 | 314 | 3,138 | |||||||
5.600% due 09/09/20 | EUR | 1,100 | 437 | Kazakhstan - 0.5% | |||||||
Banca Popolare di Milano Scarl | KazMunayGas National Co. JSC | ||||||||||
7.125% due 03/01/21 | EUR | 750 | 900 | 6.375% due 04/09/21 (Þ) | 1,000 | 1,098 | |||||
9.000% due 06/29/49 (ƒ) | EUR | 1,400 | 1,578 | 6.000% due 11/07/44 (Þ) | 3,000 | 2,715 | |||||
Banca Popolare di Vicenza | Series REGS | ||||||||||
Series EMTn | 7.000% due 05/05/20 | 1,645 | 1,806 | ||||||||
2.750% due 03/20/20 | EUR | 200 | 178 | 5.750% due 04/30/43 | 2,000 | 1,980 | |||||
Banca Popolare di Vicenza SpA | 6.000% due 11/07/44 | 1,000 | 905 | ||||||||
Series EMTn | 8,504 | ||||||||||
3.745% due 03/21/19 | EUR | 200 | 185 | Kenya - 0.2% | |||||||
Banco BPM SpA | Kenya Government International Bond | ||||||||||
6.156% due 06/29/49 (ƒ) | EUR | 550 | 560 | 5.875% due 06/24/19 (Þ) | 2,000 | 2,068 | |||||
Banco Popolare SC | Series REGS | ||||||||||
6.000% due 11/05/20 | EUR | 700 | 815 | 6.875% due 06/24/24 | 1,000 | 1,013 | |||||
Credito Valtellinese SpA | |||||||||||
8.250% due 04/12/27 | EUR | 800 | 871 | 3,081 | |||||||
Enel SpA | Lebanon - 0.3% | ||||||||||
6.500% due 01/10/74 | EUR | 2,725 | 3,210 | Lebanon Government International Bond | |||||||
Series GMTN | |||||||||||
Intesa Sanpaolo SpA | 6.375% due 03/09/20 | 1,850 | 1,911 | ||||||||
5.017% due 06/26/24 (Þ) | 1,300 | 1,239 | |||||||||
8.047% due 06/29/49 (ƒ) | EUR | 300 | 349 | Series REGS | |||||||
7.750% due 07/29/49 (ƒ) | EUR | 1,000 | 1,166 | 8.250% due 04/12/21 | 3,000 | 3,325 | |||||
7.000% due 12/29/49 (ƒ) | EUR | 800 | 899 | 5,236 | |||||||
Leonardo-Finmeccanica SpA | Luxembourg - 4.7% | ||||||||||
Accudyne Industries Borrower / | |||||||||||
Series EMTN | Accudyne Industries LLC | ||||||||||
8.000% due 12/16/19 | GBP | 845 | 1,278 | 7.750% due 12/15/20 (Þ) | 7,120 | 7,138 | |||||
LKQ Italia Bondco SpA | Altice Financing SA | ||||||||||
3.875% due 04/01/24 (Þ) | EUR | 1,160 | 1,348 | 7.500% due 05/15/26 (Þ) | 285 | 308 | |||||
Telecom Italia SpA | Series REGS | ||||||||||
5.303% due 05/30/24 (Þ) | 5,530 | 5,724 | 5.250% due 02/15/23 (Þ) | EUR | 970 | 1,126 | |||||
UniCredit SpA | 5.250% due 02/15/23 | EUR | 250 | 290 | |||||||
4.375% due 01/03/27 | EUR | 400 | 455 | ||||||||
6.750% due 12/29/49 (ƒ) | EUR | 400 | 431 | Altice Finco SA | |||||||
7.625% due 02/15/25 (Þ) | 1,720 | 1,763 | |||||||||
UnipolSai SpA | Altice Luxembourg SA | ||||||||||
5.750% due 12/31/49 (ƒ) | EUR | 1,000 | 1,083 | 7.250% due 05/15/22 (Þ) | EUR | 1,550 | 1,784 | ||||
Veneto Banca SA | Series REGS | ||||||||||
6.411% due 12/29/49 (ƒ) | EUR | 250 | 60 | 7.250% due 05/15/22 | EUR | 730 | 840 | ||||
26,239 | 6.250% due 02/15/25 | EUR | 550 | 649 | |||||||
Ivory Coast - 0.1% | ArcelorMittal | ||||||||||
Ivory Coast Government International | 6.250% due 03/01/21 | 3,785 | 4,126 | ||||||||
Bond | 7.000% due 02/25/22 | 1,085 | 1,230 | ||||||||
Series REGS | 6.125% due 06/01/25 | 2,150 | 2,413 | ||||||||
5.750% due 12/31/32 | 1,470 | 1,410 | 7.750% due 10/15/39 | 975 | 1,114 | ||||||
Japan - 0.0% | 7.500% due 03/01/41 | 650 | 733 | ||||||||
ARD Finance SA | |||||||||||
SoftBank Group Corp. | 6.625% due 09/15/23 (Þ) | EUR | 1,660 | 1,878 | |||||||
4.500% due 04/15/20 (Þ) | 890 | 925 | |||||||||
Auris Luxembourg II SA | |||||||||||
Jersey - 0.2% | 8.000% due 01/15/23 (Þ) | EUR | 710 | 834 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 301
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Series REGS | UniCredit International Bank | ||||||||||
8.000% due 01/15/23 | EUR | 1,515 | 1,779 | Luxembourg SA | |||||||
Camelot Finance SA | 8.125% due 12/29/49 (ƒ) | EUR | 1,650 | 1,978 | |||||||
7.875% due 10/15/24 (Þ) | 1,420 | 1,523 | Wind Acquisition Finance SA | ||||||||
7.000% due 04/23/21 (Þ) | EUR | 235 | 266 | ||||||||
Capsugel SA | 7.375% due 04/23/21 (Þ) | 5,060 | 5,262 | ||||||||
7.000% due 05/15/19 (Þ) | 2,426 | 2,420 | |||||||||
Delta 2 Lux Sarl 2nd Lien Term Loan | Series REGS | ||||||||||
8.068% due 07/29/22 (Ê) | 2,321 | 2,341 | 7.000% due 04/23/21 | EUR | 205 | 232 | |||||
Delta 2 Lux Sarl Term Loan B3 | 84,771 | ||||||||||
4.568% due 07/30/21 (Ê) | 1,750 | 1,752 | Malaysia - 0.9% | ||||||||
Dufry Finance SCA | Malaysia Government International Bond | ||||||||||
4.500% due 07/15/22 (Þ) | EUR | 350 | 397 | Series 0111 | |||||||
4.500% due 08/01/23 (Þ) | EUR | 870 | 1,017 | 4.160% due 07/15/21 | MYR | 7,760 | 1,819 | ||||
Evergreen Skills Lux Sarl 1st Lien Term | Series 0114 | ||||||||||
Loan | 4.181% due 07/15/24 | MYR | 3,380 | 790 | |||||||
5.750% due 04/28/21 (Ê) | 4,319 | 4,035 | Series 0115 | ||||||||
Evergreen Skills Lux Sarl 2nd Lien Term | 3.955% due 09/15/25 | MYR | 11,060 | 2,523 | |||||||
Loan | |||||||||||
9.250% due 04/28/22 (Ê) | 4,650 | 3,471 | Series 0310 | ||||||||
FAGE International SA/ FAGE USA | 4.498% due 04/15/30 | MYR | 6,215 | 1,441 | |||||||
Dairy Industry, Inc. | Series 0311 | ||||||||||
5.625% due 08/15/26 (Þ) | 1,430 | 1,455 | 4.392% due 04/15/26 | MYR | 2,900 | 678 | |||||
Gazprom OAO Via Gaz Capital SA | Series 0314 | ||||||||||
9.250% due 04/23/19 (Þ) | 1,000 | 1,122 | 4.048% due 09/30/21 | MYR | 12,419 | 2,894 | |||||
Series REGS | Series 0414 | ||||||||||
9.250% due 04/23/19 | 1,250 | 1,402 | 3.654% due 10/31/19 | MYR | 14,740 | 3,412 | |||||
6.510% due 03/07/22 | 3,000 | 3,339 | Series 0415 | ||||||||
8.625% due 04/28/34 | 2,000 | 2,644 | 4.254% due 05/31/35 | MYR | 5,650 | 1,257 | |||||
7.288% due 08/16/37 | 1,000 | 1,187 | Series 0416 | ||||||||
Hanesbrands Finance Luxembourg SCA | 3.620% due 11/30/21 | MYR | 4,470 | 1,024 | |||||||
3.500% due 06/15/24 (Þ) | EUR | 1,910 | 2,153 | 15,838 | |||||||
Intelsat Jackson Holdings SA | Mexico - 3.1% | ||||||||||
7.500% due 04/01/21 | 380 | 348 | America Movil SAB de CV | ||||||||
8.000% due 02/15/24 (Þ) | 1,000 | 1,079 | 6.000% due 06/09/19 | MXN | 5,210 | 266 | |||||
International Automotive Components | Mexican Bonos | ||||||||||
Group SA | |||||||||||
9.125% due 06/01/18 (Þ) | 2,004 | 1,949 | Series M 10 | ||||||||
8.500% due 12/13/18 | MXN | 35,000 | 1,906 | ||||||||
Mallinckrodt International Finance SA | |||||||||||
5.750% due 08/01/22 (Þ) | 480 | 472 | Series M 20 | ||||||||
5.625% due 10/15/23 (Þ) | 700 | 669 | 10.000% due 12/05/24 | MXN | 84,735 | 5,253 | |||||
7.500% due 06/03/27 | MXN | 53,096 | 2,875 | ||||||||
Matterhorn Telecom SA | |||||||||||
3.875% due 05/01/22 (Þ) | EUR | 1,215 | 1,358 | Series M 30 | |||||||
10.000% due 11/20/36 | MXN | 61,705 | 4,077 | ||||||||
Monitchem Holdco 2 SA | Series M | ||||||||||
Series REGS | 5.000% due 12/11/19 | MXN | 118,616 | 6,029 | |||||||
6.875% due 06/15/22 | EUR | 1,255 | 1,354 | 6.500% due 06/10/21 | MXN | 14,600 | 760 | ||||
SIG Combibloc Holdings SCA | 6.500% due 06/09/22 | MXN | 29,800 | 1,543 | |||||||
7.750% due 02/15/23 (Þ) | EUR | 1,845 | 2,155 | 5.750% due 03/05/26 | MXN | 49,180 | 2,373 | ||||
Telecom Italia Capital SA | 7.750% due 05/29/31 | MXN | 12,344 | 673 | |||||||
6.999% due 06/04/18 | 1,419 | 1,490 | 7.750% due 11/13/42 | MXN | 71,280 | 3,846 | |||||
6.375% due 11/15/33 | 810 | 849 | |||||||||
7.200% due 07/18/36 | 780 | 860 | Mexico Government International Bond | ||||||||
5.550% due 01/21/45 | 1,500 | 1,654 | |||||||||
7.721% due 06/04/38 | 810 | 934 | 5.750% due 10/12/10 | 9,000 | 9,180 | ||||||
Telenet Finance VI Luxembourg SCA | Petroleos Mexicanos | ||||||||||
Series REGS | 3.500% due 01/30/23 | 1,500 | 1,432 | ||||||||
4.875% due 07/15/27 | EUR | 3,205 | 3,808 | 6.625% due 06/15/38 | 4,000 | 4,090 | |||||
Travelport Finance (Luxembourg) Sarl | |||||||||||
1st Lien Term Loan C | 6.500% due 06/02/41 | 5,650 | 5,658 | ||||||||
4.289% due 09/02/21 (Ê) | 1,435 | 1,445 | 5.500% due 06/27/44 | 3,000 | 2,632 | ||||||
5.625% due 01/23/46 | 1,000 | 890 |
See accompanying notes which are an integral part of the financial statements.
302 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
6.750% due 09/21/47 | 1,100 | 1,122 | Marfrig Holdings Europe BV | ||||||||
Series 14-2 | Series REGS | ||||||||||
7.470% due 11/12/26 | MXN | 5,330 | 247 | 6.875% due 06/24/19 | 2,000 | 2,080 | |||||
56,506 | NIBC Bank NV | ||||||||||
Mongolia - 0.2% | 7.625% due 10/29/49 (ƒ) | 1,000 | 1,035 | ||||||||
Mongolia Government International | Petrobras Global Finance BV | ||||||||||
Bond | 4.375% due 05/20/23 | 2,900 | 2,777 | ||||||||
10.875% due 04/06/21 (Þ) | 1,850 | 2,151 | 6.250% due 12/14/26 | GBP | 1,000 | 1,339 | |||||
5.125% due 12/05/22 (Þ) | 300 | 287 | 6.875% due 01/20/40 | 5,728 | 5,470 | ||||||
Series REGS | 6.850% due 06/05/15 | 5,600 | 4,987 | ||||||||
5.125% due 12/05/22 | 905 | 864 | PortAventura Entertainment Barcelona | ||||||||
3,302 | BV | ||||||||||
Morocco - 0.1% | 5.296% due 12/01/19 (Ê)(Þ) | EUR | 370 | 404 | |||||||
Morocco Government International Bond | 7.250% due 12/01/20 (Þ) | EUR | 330 | 370 | |||||||
5.500% due 12/11/42 (Þ) | 1,250 | 1,355 | Series REGS | ||||||||
7.250% due 12/01/20 | EUR | 1,060 | 1,188 | ||||||||
Mozambique - 0.0% | Republic of Angola Via Northern Lights | ||||||||||
III BV | |||||||||||
Mozambique International Bond | Series REGS | ||||||||||
10.500% due 01/18/23 (Þ) | 1,033 | 739 | 7.000% due 08/17/19 | 469 | 484 | ||||||
Netherlands - 2.5% | Srlev NV | ||||||||||
9.000% due 04/15/41 | EUR | 1,000 | 1,270 | ||||||||
ABN AMRO Bank NV | |||||||||||
5.750% due 12/29/49 (ƒ) | EUR | 600 | 693 | Stichting AK Rabobank Certificaten | |||||||
6.500% due 12/29/49 (ƒ) | EUR | 950 | 1,192 | ||||||||
Achmea BV | |||||||||||
6.000% due 11/29/49 (ƒ) | EUR | 1,000 | 1,131 | Telefonica Europe BV | |||||||
6.500% due 12/31/49 (ƒ) | EUR | 1,500 | 1,753 | ||||||||
Aegon NV | |||||||||||
5.185% due 10/29/49 (ƒ) | NLG | 1,000 | 398 | Ziggo Bond Finance BV | |||||||
4.625% due 01/15/25 (Þ) | EUR | 1,580 | 1,811 | ||||||||
Alcoa Nederland Holding BV | |||||||||||
6.750% due 09/30/24 (Þ) | 2,015 | 2,204 | Series REGS | ||||||||
4.625% due 01/15/25 | EUR | 1,220 | 1,398 | ||||||||
Alpha 3 BV | |||||||||||
6.250% due 02/01/25 (Þ) | 515 | 523 | 45,645 | ||||||||
AP NMT Acquisition BV 1st Lien Term | Nigeria - 0.1% | ||||||||||
Loan | Nigeria Government International Bond | ||||||||||
6.898% due 08/13/21 (Ê) | 975 | 857 | Series REGS | ||||||||
Atradius Finance BV | 6.750% due 01/28/21 | 1,000 | 1,061 | ||||||||
5.250% due 09/23/44 | EUR | 500 | 555 | ||||||||
Darling Global Finance BV | Norway - 0.0% | ||||||||||
4.750% due 05/30/22 (Þ) | EUR | 2,310 | 2,654 | Storebrand Livsforsikring Group | |||||||
Delta Lloyd NV | 6.875% due 04/04/43 | EUR | 400 | 519 | |||||||
4.375% due 06/29/49 (ƒ) | EUR | 1,000 | 1,110 | ||||||||
Goodyear Dunlop Tires Europe BV | Pakistan - 0.5% | ||||||||||
3.750% due 12/15/23 (Þ) | EUR | 820 | 943 | Pakistan Government International Bond | |||||||
Series REGS | 8.250% due 04/15/24 (Þ) | 2,050 | 2,281 | ||||||||
3.750% due 12/15/23 | EUR | 700 | 805 | Series REGS | |||||||
ING Groep NV | 7.875% due 03/31/36 | 6,000 | 6,086 | ||||||||
6.500% due 12/29/49 (ƒ) | 600 | 616 | 8,367 | ||||||||
InterXion Holding NV | Panama - 0.5% | ||||||||||
Series REGS | Panama Government International Bond | ||||||||||
6.000% due 07/15/20 | EUR | 2,490 | 2,824 | 9.375% due 04/01/29 | 4,500 | 6,682 | |||||
LGE HoldCo VI BV | 6.700% due 01/26/36 | 1,500 | 1,939 | ||||||||
Series REGS | 8,621 | ||||||||||
7.125% due 05/15/24 | EUR | 100 | 124 | Paraguay - 0.2% | |||||||
Lincoln Finance, Ltd. | Paraguay Government International | ||||||||||
6.875% due 04/15/21 (Þ) | EUR | 620 | 726 | Bond | |||||||
Majapahit Holding BV | 6.100% due 08/11/44 (Þ) | 3,551 | 3,826 | ||||||||
Series REGS | |||||||||||
7.875% due 06/29/37 | 1,500 | 1,924 | Peru - 0.8% | ||||||||
Fondo Mivivienda SA |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 303
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
7.000% due 02/14/24 (Þ) | PEN | 4,550 | 1,427 | Series 6214 | |||||||
Peruvian Government International Bond | 6.400% due 05/27/20 | RUB | 267,830 | 4,521 | |||||||
6.350% due 08/12/28 (Þ) | PEN | 5,526 | 1,763 | Series 6215 | |||||||
8.750% due 11/21/33 | 3,000 | 4,590 | 7.000% due 08/16/23 | RUB | 107,542 | 1,829 | |||||
Series REGS | Series 6216 | ||||||||||
6.950% due 08/12/31 | PEN | 5,830 | 1,941 | 6.700% due 05/15/19 | RUB | 77,440 | 1,328 | ||||
6.900% due 08/12/37 | PEN | 12,030 | 4,004 | Series 6218 | |||||||
13,725 | 8.500% due 09/17/31 | RUB | 98,630 | 1,845 | |||||||
Philippines - 0.2% | Series 6219 | ||||||||||
Philippine Government International | 7.750% due 09/16/26 | RUB | 198,770 | 3,528 | |||||||
Bond | Russian Federation International Bond | ||||||||||
4.950% due 01/15/21 | PHP | 42,000 | 862 | Series REGS | |||||||
9.500% due 02/02/30 | 1,200 | 1,906 | 7.500% due 03/31/30 | 758 | 913 | ||||||
6.250% due 01/14/36 | PHP | 20,000 | 444 | ||||||||
19,689 | |||||||||||
3,212 | Serbia - 0.3% | ||||||||||
Poland - 1.2% | Serbia Government International Bond | ||||||||||
Poland Government International Bond | Series REGS | ||||||||||
Series 0420 | 5.875% due 12/03/18 | 1,400 | 1,473 | ||||||||
1.500% due 04/25/20 | PLN | 5,000 | 1,259 | 7.250% due 09/28/21 | 3,000 | 3,454 | |||||
3.000% due 03/17/23 | 2,000 | 2,003 | |||||||||
4,927 | |||||||||||
Series 0718 | Singapore - 0.0% | ||||||||||
2.500% due 07/25/18 | PLN | 1,860 | 484 | ||||||||
4.000% due 01/22/24 | 650 | 686 | UniCredit SpA | ||||||||
5.500% due 07/30/23 | SGD | 635 | 441 | ||||||||
Series 0725 | |||||||||||
3.250% due 07/25/25 | PLN | 24,350 | 6,283 | Slovenia - 0.1% | |||||||
Series 0922 | Slovenia Government International Bond | ||||||||||
5.750% due 09/23/22 | PLN | 8,005 | 2,352 | 5.250% due 02/18/24 (Þ) | 1,500 | 1,705 | |||||
Series 1018 | Series REGS | ||||||||||
1.843% due 10/25/18 | PLN | 15,450 | 3,876 | 5.850% due 05/10/23 | 500 | 581 | |||||
Series 1020 | |||||||||||
5.250% due 10/25/20 | PLN | 18,830 | 5,301 | 2,286 | |||||||
South Africa - 1.5% | |||||||||||
22,244 | |||||||||||
Portugal - 0.1% | Eskom Holdings SOC, Ltd. | ||||||||||
Series REGS | |||||||||||
Caixa Geral de Depositos SA | 5.750% due 01/26/21 | 3,800 | 3,814 | ||||||||
10.750% due 12/31/99 (ƒ) | EUR | 600 | 657 | Republic of South Africa Government | |||||||
GNB - Companhia de Seguros de Vida | Bond | ||||||||||
SA | |||||||||||
1.871% due 12/19/22 (Å)(Ê) | EUR | 200 | 131 | Series 2023 | |||||||
7.750% due 02/28/23 | ZAR | 51,660 | 3,802 | ||||||||
3.171% due 12/29/49 (Å)(ƒ) | EUR | 130 | 57 | ||||||||
Series 2032 | |||||||||||
Novo Banco SA | 8.250% due 03/31/32 | ZAR | 129,550 | 8,888 | |||||||
0.566% due 02/27/51 | EUR | 1,500 | 151 | ||||||||
Series 2048 | |||||||||||
996 | 8.750% due 02/28/48 | ZAR | 28,290 | 1,926 | |||||||
Romania - 0.3% | Series R186 | ||||||||||
Romania Government International Bond | 10.500% due 12/21/26 | ZAR | 100,780 | 8,417 | |||||||
Series 10YR | Republic of South Africa Government | ||||||||||
5.950% due 06/11/21 | RON | 7,680 | 2,079 | International Bond | |||||||
Series 5Y | Series R186 | ||||||||||
3.250% due 03/22/21 | RON | 7,580 | 1,865 | 10.500% due 12/21/26 | ZAR | 9,130 | 763 | ||||
Series REGS | South Africa Government International | ||||||||||
6.750% due 02/07/22 | 1,000 | 1,160 | Bond | ||||||||
Series 2037 | |||||||||||
5,104 | 8.500% due 01/31/37 | ZAR | 3,500 | 238 | |||||||
Russia - 1.1% | |||||||||||
27,848 | |||||||||||
Russia Government International Bond | Spain - 0.6% | ||||||||||
Series 6211 | |||||||||||
7.000% due 01/25/23 | RUB | 127,368 | 2,179 | Banco Popular Espanol SA | |||||||
3.271% due 12/22/19 (Ê) | EUR | 1,200 | 1,175 | ||||||||
Series 6212 | 8.000% due 07/29/21 (Å) | EUR | 1,050 | 1,112 | |||||||
7.050% due 01/19/28 | RUB | 209,840 | 3,546 |
See accompanying notes which are an integral part of the financial statements.
304 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
8.250% due 10/19/21 | EUR | 925 | 980 | 3.850% due 12/12/25 | THB | 134,670 | 4,253 | ||||
11.500% due 10/29/49 (ƒ) | EUR | 900 | 904 | 3.580% due 12/17/27 | THB | 30,830 | 949 | ||||
Banco Santander SA | 4.875% due 06/22/29 | THB | 19,450 | 669 | |||||||
6.250% due 03/12/49 (ƒ) | EUR | 800 | 881 | 13,987 | |||||||
CaixaSabadell Preferentes SAU | Turkey - 2.0% | ||||||||||
Series B | Export Credit Bank of Turkey | ||||||||||
1.618% due 07/29/49 (Å)(ƒ) | EUR | 800 | 754 | 5.875% due 04/24/19 (Þ) | 7,500 | 7,834 | |||||
Caja de Seguros Reunidos, Compania de | Turkey Government International Bond | ||||||||||
Seguros y Reaseguros, SA | 10.400% due 03/27/19 | TRY | 4,080 | 1,138 | |||||||
8.000% due 02/17/26 (Þ) | EUR | 400 | 452 | 7.500% due 11/07/19 | 1,000 | 1,101 | |||||
Grifols SA | 7.000% due 06/05/20 | 2,000 | 2,201 | ||||||||
3.200% due 05/01/25 (Þ) | EUR | 1,750 | 1,894 | 10.700% due 02/17/21 | TRY | 24,390 | 6,874 | ||||
Grupo Antolin-Irausa SA | 9.500% due 01/12/22 | TRY | 4,680 | 1,269 | |||||||
3.250% due 04/30/24 (Þ) | EUR | 500 | 547 | 7.100% due 03/08/23 | TRY | 9,000 | 2,171 | ||||
Ibercaja Banco SA | 7.375% due 02/05/25 | 1,200 | 1,392 | ||||||||
5.000% due 07/28/25 | EUR | 700 | 768 | 8.000% due 03/12/25 | TRY | 24,110 | 6,004 | ||||
Pastor Participaciones Preferentes SA | 6.000% due 03/25/27 | 700 | 749 | ||||||||
1.841% due 07/29/49 (ƒ) | EUR | 200 | 163 | 6.750% due 05/30/40 | 1,000 | 1,126 | |||||
Popular Capital SA | 6.625% due 02/17/45 | 4,000 | 4,483 | ||||||||
6.000% due 10/29/49 (ƒ) | EUR | 700 | 648 | ||||||||
36,342 | |||||||||||
Santander Finance Capital SA | Ukraine - 0.2% | ||||||||||
Series VII | |||||||||||
2.000% due 03/29/49 (Å)(ƒ) | 375 | 211 | Ukraine Government International Bond | ||||||||
Series GDP | |||||||||||
Santander Perpetual SA | 4.660% due 05/31/40 | 3,000 | 1,047 | ||||||||
1.271% due 12/29/49 (ƒ) | EUR | 700 | 633 | 4.660% due 05/31/40 (Þ) | 6,195 | 2,163 | |||||
Santander Perpetual SAU | |||||||||||
Series REGS ) | 3,210 | ||||||||||
6.671% due 10/29/49 (Å)(ƒ) | 170 | 171 | United Kingdom - 3.7% | ||||||||
AA Bond Co., Ltd. | |||||||||||
11,293 | 5.500% due 07/31/22 (Þ) | GBP | 1,795 | 2,406 | |||||||
Sri Lanka - 0.4% | |||||||||||
Sri Lanka Government International | Aberdeen Asset Management PLC | ||||||||||
Bond | 7.000% due 03/29/49 (ƒ) | 600 | 622 | ||||||||
Series REGS | Anglo American Capital PLC | ||||||||||
5.875% due 07/25/22 | 7,600 | 7,866 | 1.500% due 04/01/20 | EUR | 100 | 111 | |||||
3.625% due 05/14/20 (Þ) | 1,950 | 1,974 | |||||||||
Sweden - 0.3% | 3.500% due 03/28/22 | EUR | 825 | 984 | |||||||
Nordea Bank AB | 3.250% due 04/03/23 | EUR | 450 | 532 | |||||||
1.437% due 02/21/19 (Ê) | 1,500 | 1,499 | 4.875% due 05/14/25 (Þ) | 500 | 521 | ||||||
1.435% due 04/10/19 (Ê) | 700 | 700 | Arqiva Broadcast Finance PLC | ||||||||
Svenska Handelsbanken AB | 9.500% due 03/31/20 (Þ) | GBP | 1,270 | 1,770 | |||||||
1.439% due 02/12/19 (Ê) | 3,110 | 3,109 | Series REGS | ||||||||
Swedbank AB | 9.500% due 03/31/20 | GBP | 925 | 1,289 | |||||||
6.000% due 12/29/49 (ƒ) | 800 | 834 | Barclays Bank PLC | ||||||||
5.330% due 03/29/49 (ƒ) | GBP | 100 | 119 | ||||||||
Switzerland - 0.1% | 6,142 | 6.000% due 06/29/49 (ƒ) | GBP | 400 | 508 | ||||||
6.278% due 12/29/49 (ƒ) | 1,185 | 1,293 | |||||||||
Credit Suisse Group AG | |||||||||||
Barclays PLC | |||||||||||
Series REGS | 8.000% due 12/15/49 (ƒ) | EUR | 600 | 721 | |||||||
6.250% due 12/29/49 (ƒ) | 800 | 834 | |||||||||
Matterhorn Telecom SA | Boparan Finance PLC | ||||||||||
3.625% due 05/01/22 (Þ) | CHF | 240 | 247 | Series REGS | |||||||
4.375% due 07/15/21 | EUR | 320 | 350 | ||||||||
1,081 | 5.500% due 07/15/21 | GBP | 815 | 1,056 | |||||||
Thailand - 0.8% | Coventry Building Society | ||||||||||
PTT Exploration & Production PCL | 6.375% due 12/29/49 (ƒ) | GBP | 500 | 648 | |||||||
4.875% due 12/29/49 (ƒ)(Þ) | 1,000 | 1,023 | CPUK Finance, Ltd. | ||||||||
Thailand Government Bond | 7.000% due 08/28/20 (Þ) | GBP | 1,710 | 2,326 | |||||||
3.875% due 06/13/19 | THB | 32,400 | 981 | ||||||||
3.650% due 12/17/21 | THB | 197,470 | 6,112 | CYBG PLC | |||||||
5.000% due 02/09/26 | GBP | 400 | 515 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 305
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Ensco PLC | Series REGS | ||||||||||
4.500% due 10/01/24 | 325 | 268 | 7.750% due 12/29/49 (ƒ) | 1,200 | 1,280 | ||||||
5.750% due 10/01/44 | 700 | 510 | Synlab Bondco PLC | ||||||||
Ephios Holdco II PLC | 6.250% due 07/01/22 (Þ) | EUR | 1,050 | 1,238 | |||||||
8.250% due 07/01/23 (Þ) | EUR | 900 | 1,093 | Synlab Unsecured Bondco PLC | |||||||
HBOS Capital Funding, LP | 8.250% due 07/01/23 (Þ) | EUR | 460 | 559 | |||||||
6.850% due 03/29/49 (ƒ) | 1,100 | 1,118 | TA MFG., Ltd. | ||||||||
Hyperion Insurance Group, Ltd. Term | 3.625% due 04/15/23 (Þ) | EUR | 1,665 | 1,858 | |||||||
Loan B | Tesco Corporate Treasury Services PLC | ||||||||||
5.500% due 04/29/22 (Ê) | 1,232 | 1,235 | 2.500% due 07/01/24 | EUR | 855 | 955 | |||||
Ineos Finance PLC | Tesco PLC | ||||||||||
4.000% due 05/01/23 (Þ) | EUR | 2,130 | 2,410 | 5.000% due 03/24/23 | GBP | 1,015 | 1,453 | ||||
Inmarsat Finance PLC | 6.150% due 11/15/37 (Þ) | 975 | 993 | ||||||||
6.500% due 10/01/24 (Þ) | 2,060 | 2,178 | TSB Banking Group PLC | ||||||||
Inovyn Finance PLC | 5.750% due 05/06/26 | GBP | 500 | 693 | |||||||
6.250% due 05/15/21 (Þ) | EUR | 895 | 1,024 | Tullow Oil PLC | |||||||
Intermediate Capital Group PLC | 6.000% due 11/01/20 (Þ) | 1,810 | 1,760 | ||||||||
5.000% due 03/24/23 | GBP | 685 | 915 | Ukreximbank Via Biz Finance PLC | |||||||
International Personal Finance PLC | Series REGS | ||||||||||
5.750% due 04/07/21 | EUR | 600 | 546 | 9.750% due 01/22/25 | 300 | 299 | |||||
Iron Mountain Europe PLC | Virgin Media Finance PLC | ||||||||||
6.125% due 09/15/22 (Þ) | GBP | 1,015 | 1,389 | 4.875% due 02/15/22 | 1,000 | 897 | |||||
Series REGS | Virgin Media Secured Finance PLC | ||||||||||
6.125% due 09/15/22 | GBP | 1,400 | 1,915 | ||||||||
Series REGS | |||||||||||
LaSer Confinoga SA | 5.500% due 01/15/25 | GBP | 2,183 | 2,982 | |||||||
2.350% due 01/29/49 (ƒ) | EUR | 427 | 376 | ||||||||
Vue International Bidco PLC | |||||||||||
Liverpool Victoria Friendly Society, Ltd. | 7.875% due 07/15/20 (Þ) | GBP | 160 | 214 | |||||||
6.500% due 05/22/43 | GBP | 500 | 678 | ||||||||
Series REGS | |||||||||||
Lloyds Bank PLC | 7.875% due 07/15/20 | GBP | 2,050 | 2,743 | |||||||
4.385% due 05/29/49 (ƒ) | EUR | 600 | 706 | ||||||||
Worldpay Finance PLC | |||||||||||
Series EMTn | 3.750% due 11/15/22 (Þ) | EUR | 2,100 | 2,472 | |||||||
13.000% due 01/29/49 (ƒ) | GBP | 400 | 953 | ||||||||
Lloyds Banking Group PLC | 67,965 | ||||||||||
6.413% due 01/29/49 (ƒ)(Þ) | 400 | 433 | United States - 38.5% | ||||||||
7.625% due 12/29/49 (ƒ) | GBP | 600 | 864 | 1MDB Global Investments, Ltd. | |||||||
Series REGS | Series REGS | ||||||||||
6.657% due 01/29/49 (ƒ) | 250 | 274 | 4.400% due 03/09/23 | 4,500 | 4,219 | ||||||
ABG Intermediate Holdings 2 LLC 1st | |||||||||||
Merlin Entertainments PLC | Lien Term Loan B1 | ||||||||||
2.750% due 03/15/22 (Þ) | EUR | 680 | 776 | 5.147% due 05/27/21 (Ê) | 1,245 | 1,249 | |||||
Series REGS | ABG Intermediate Holdings 2 LLC 2nd | ||||||||||
2.750% due 03/15/22 | EUR | 1,780 | 2,030 | Lien Term Loan | |||||||
Old Mutual PLC | 9.647% due 05/27/22 (Ê) | 493 | 497 | ||||||||
7.875% due 11/03/25 | GBP | 600 | 906 | Acadia Healthcare Co., Inc. | |||||||
Pension Insurance Corp. PLC | 5.625% due 02/15/23 | 335 | 347 | ||||||||
6.500% due 07/03/24 | GBP | 300 | 405 | 6.500% due 03/01/24 | 1,430 | 1,516 | |||||
Petrobras Global Finance BV | Active Network, Inc. 1st Lien Term Loan | ||||||||||
5.375% due 10/01/29 | GBP | 1,000 | 1,215 | 6.000% due 11/15/20 | 924 | 925 | |||||
6.625% due 01/16/34 | GBP | 500 | 632 | ADT Corp. (The) | |||||||
Royal Bank of Scotland Group PLC | 3.500% due 07/15/22 | 810 | 784 | ||||||||
7.648% due 09/30/49 (ƒ) | 1,450 | 1,718 | 4.125% due 06/15/23 | 745 | 726 | ||||||
5.500% due 11/29/49 (ƒ) | EUR | 800 | 869 | Advanced Disposal Services, Inc. Term | |||||||
Loan B3 | |||||||||||
Series EMTN | 3.696% due 11/10/23 (Ê) | 738 | 744 | ||||||||
6.666% due 04/29/49 (ƒ) | CAD | 600 | 463 | ||||||||
AES Corp. | |||||||||||
Series REGS | 6.000% due 05/15/26 | 1,850 | 1,949 | ||||||||
6.990% due 10/29/49 (ƒ) | 1,000 | 1,130 | |||||||||
Air Methods Corp. Term Loan B | |||||||||||
Standard Chartered PLC | 4.572% due 04/05/24 | 483 | 483 | ||||||||
7.014% due 12/30/49 (ƒ)(Þ) | 715 | 795 |
See accompanying notes which are an integral part of the financial statements.
306 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Albertsons Cos. LLC / Safeway, Inc. / | 5.400% due 04/15/21 | 1,875 | 2,011 | ||||||||
New Albertson's Inc / Albertson's | 5.900% due 02/01/27 | 650 | 699 | ||||||||
LLC | 5.950% due 02/01/37 | 650 | 662 | ||||||||
6.625% due 06/15/24 (Þ) | 340 | 348 | AssuredPartners, Inc. Term Loan B | ||||||||
5.750% due 03/15/25 (Þ) | 1,635 | 1,590 | 5.250% due 10/21/22 (Ê) | 335 | 337 | ||||||
Allegheny Technologies, Inc. | Asurion LLC 1st Lien Term Loan B4 | ||||||||||
5.950% due 01/15/21 | 875 | 866 | 4.250% due 08/04/22 (Ê) | 478 | 481 | ||||||
7.875% due 08/15/23 | 480 | 495 | |||||||||
Alliant Holdings Holdings I, Inc. Term | Asurion LLC Term Loan B5 | ||||||||||
Loan B | 4.750% due 11/01/23 (Ê) | 735 | 741 | ||||||||
4.416% due 08/14/22 (Ê) | 372 | 373 | AT&T, Inc. | ||||||||
Alliant Holdings Intermediate LLC | 5.600% due 05/15/18 | 440 | 457 | ||||||||
8.250% due 08/01/23 (Þ) | 5,720 | 6,107 | 1.962% due 11/27/18 (Ê) | 500 | 504 | ||||||
Ally Financial, Inc. | 1.808% due 01/15/20 (Ê) | 1,200 | 1,208 | ||||||||
8.000% due 11/01/31 | 910 | 1,083 | Atotech BV Term Loan B1 | ||||||||
4.146% due 01/24/24 | 625 | 628 | |||||||||
Altice US Finance I Corp. Term Loan B | Avantor Performance Materials LLC 1st | ||||||||||
3.908% due 07/14/25 | 120 | 120 | |||||||||
Alvogen Pharmaceutical US, Inc. Term | Lien Term Loan | ||||||||||
5.000% due 03/07/24 | 480 | 484 | |||||||||
Loan | Avantor Performance Materials LLC 2nd | ||||||||||
6.000% due 04/02/22 (Ê) | 510 | 507 | Lien Term Loan | ||||||||
American Airlines, Inc. Term Loan B | 9.250% due 03/07/25 | 110 | 111 | ||||||||
2.993% due 06/26/20 | 1,975 | 1,975 | 9.422% due 03/07/25 | 2,507 | 2,517 | ||||||
3.493% due 04/28/23 (Ê) | 495 | 495 | Avantor Performance Materials LLC | ||||||||
American Express Credit Account | Term Loan | ||||||||||
Master Trust | 5.000% due 03/08/24 | 20 | 20 | ||||||||
Series 2008-2 Class A | Avaya, Inc. Term Loan B7 | ||||||||||
1.457% due 09/15/20 (Ê) | 2,205 | 2,226 | 6.417% due 05/29/20 (Ê) | 2,457 | 2,049 | ||||||
Series 2014-3 Class A | Avis Budget Car Rental LLC / Avis | ||||||||||
1.490% due 04/15/20 | 1,000 | 1,001 | Budget Finance, Inc. | ||||||||
American Honda Finance Corp. | 6.375% due 04/01/24 (Þ) | 475 | 474 | ||||||||
Series MTN | Avolon Holdings, Ltd. Term Loan B | ||||||||||
1.377% due 02/14/20 (Ê) | 2,200 | 2,206 | 3.743% due 01/13/22 | 500 | 507 | ||||||
American Tire Distributors, Inc. | Avon Products, Inc. | ||||||||||
10.250% due 03/01/22 (Þ) | 7,660 | 7,861 | 6.500% due 03/01/19 | 910 | 947 | ||||||
Amerigas Partners LP / Amerigas | Axalta Coating Systems LLC | ||||||||||
Finance Corp. | 4.250% due 08/15/24 (Þ) | 1,790 | 2,083 | ||||||||
5.500% due 05/20/25 | 235 | 237 | Bass Pro Group LLC 1st Lien Term | ||||||||
AmeriGas Partners, LP / AmeriGas | Loan B | ||||||||||
Finance Corp. | 6.147% due 12/16/23 (Ê) | 900 | 876 | ||||||||
5.625% due 05/20/24 | 1,535 | 1,562 | BayernLB Capital Trust I | ||||||||
Amsurg Corp. | Series REGS | ||||||||||
5.625% due 07/15/22 | 435 | 449 | 6.203% due 05/29/49 (ƒ) | 800 | 791 | ||||||
Anheuser-Busch InBev Finance, Inc. | BBB Industries LLC 1st Lien Term Loan | ||||||||||
1.570% due 02/01/19 (Ê) | 1,385 | 1,390 | 6.000% due 11/03/21 (Ê) | 1,000 | 1,001 | ||||||
Antero Midstream Partners LP / Antero | |||||||||||
Midstream Finance Corp. | BCD Acquisition, Inc. | ||||||||||
5.375% due 09/15/24 (Þ) | 185 | 189 | 9.625% due 09/15/23 (Þ) | 1,430 | 1,541 | ||||||
Antero Resources Corp. | Belden, Inc. | ||||||||||
5.125% due 12/01/22 | 880 | 893 | 5.500% due 04/15/23 (Þ) | 105 | 121 | ||||||
AP Gaming I LLC 1st Lien Term Loan B | Series REGS | ||||||||||
9.250% due 12/20/20 (Ê) | 490 | 493 | 5.500% due 04/15/23 | 1,475 | 1,693 | ||||||
Berry Plastics Corp. 1st Lien Term | |||||||||||
Apex Tool Group LLC | Loan I | ||||||||||
7.000% due 02/01/21 (Þ) | 1,335 | 1,242 | 3.493% due 10/01/22 (Ê) | 474 | 477 | ||||||
Apple, Inc. | BioScrip, Inc. Delayed Draw Term Loan | ||||||||||
1.422% due 05/03/18 (Ê) | 1,437 | 1,440 | 9.250% due 07/31/20 (Å)(Ê) | 1,411 | 1,386 | ||||||
1.334% due 05/06/19 (Ê) | 1,500 | 1,507 | 9.250% due 07/31/20 (Ê)(Þ) | 44 | 43 | ||||||
Arbor Pharmaceuticals, Inc. Term Loan | |||||||||||
B | BioScrip, Inc. Term Loan | ||||||||||
6.147% due 06/28/23 | 1,234 | 1,257 | 8.998% due 07/31/18 (Å) | 1,293 | 1,259 | ||||||
Arconic, Inc. | BioScrip, Inc. Term Loan B |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 307
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
9.250% due 07/31/20 (Å)(Ê) | 2,352 | 2,311 | 5.375% due 06/01/24 | 1,045 | 1,082 | ||||||
9.250% due 07/31/20 (Ê)(Þ) | 73 | 72 | Centene Corp. | ||||||||
BJ's Wholesale Club, Inc. 2nd Lien Term | 4.750% due 01/15/25 | 138 | 140 | ||||||||
Loan | Century Aluminum Co. | ||||||||||
8.525% due 01/27/25 (Ê) | 500 | 501 | 7.500% due 06/01/21 (Å) | 10,395 | 10,512 | ||||||
BMW US Capital LLC | CenturyLink, Inc. | ||||||||||
1.500% due 04/11/19 (Þ) | 2,655 | 2,642 | 5.625% due 04/01/25 | 730 | 713 | ||||||
BMW Vehicle Owner Trust | Series G | ||||||||||
Series 2014-A Class A3 | 6.875% due 01/15/28 | 650 | 648 | ||||||||
0.970% due 11/26/18 | 354 | 354 | Series T | ||||||||
Boyd Gaming Corp. | 5.800% due 03/15/22 | 550 | 575 | ||||||||
6.375% due 04/01/26 | 970 | 1,045 | Series W | ||||||||
Brazil Loan Trust 1 | 6.750% due 12/01/23 | 3,950 | 4,231 | ||||||||
5.477% due 07/24/23 (Þ) | 1,802 | 1,838 | |||||||||
Brickman Group, Ltd. LLC (The) 1st | Series Y | ||||||||||
Lien Term Loan B | 7.500% due 04/01/24 | 530 | 576 | ||||||||
4.022% due 12/18/20 (Ê) | 499 | 500 | CF Industries, Inc. | ||||||||
3.450% due 06/01/23 | 1,785 | 1,665 | |||||||||
Brinker International, Inc. | CH Hold Corp. 1st Lien Delayed Draw | ||||||||||
3.875% due 05/15/23 | 900 | 850 | Term Loan B | ||||||||
BWAY Holding Co. | 3.000% due 02/01/24 (Ê) | 68 | 69 | ||||||||
5.500% due 04/15/24 (Þ) | 317 | 321 | CH Hold Corp. 1st Lien Term Loan B | ||||||||
BWAY Holding Co. Term Loan B | 4.000% due 02/01/24 (Ê) | 682 | 686 | ||||||||
4.233% due 03/22/24 | 750 | 745 | CH Hold Corp. 2nd Lien Term Loan B | ||||||||
Cable One, Inc. Term Loan B | 8.285% due 02/01/25 (Ê) | 250 | 254 | ||||||||
3.430% due 04/05/24 | 500 | 503 | Change Healthcare Holdings LLC 1st | ||||||||
Caesars Entertainment Corp. 1st Lien | Lien Term Loan B | ||||||||||
Term Loan B | 3.750% due 03/01/24 (Ê) | 2,000 | 2,005 | ||||||||
7.000% due 10/11/20 (Ê) | 3,175 | 3,181 | Change Healthcare Holdings, Inc. / | ||||||||
Capital Automotive LP 1st Lien Term | Change Financing Co. | ||||||||||
Loan | 5.750% due 03/01/25 (Þ) | 1,705 | 1,750 | ||||||||
4.029% due 03/17/24 | 250 | 252 | Charcoal Holdings LLC 1st Lien Term | ||||||||
Capital Automotive LP 2nd Lien Term | Loan | ||||||||||
Loan | 5.750% due 07/03/23 | 995 | 1,001 | ||||||||
7.000% due 03/24/25 (Ê) | 250 | 255 | Charming Charlie LLC Term Loan B | ||||||||
Capital One Multi-Asset Execution Trust | 9.157% due 12/24/19 (Ê) | 793 | 397 | ||||||||
Series 2014-A3 Class A3 | Charter Communications Operating LLC | ||||||||||
1.374% due 01/18/22 (Ê) | 1,000 | 1,005 | 1st Lien Term Loan H | ||||||||
Casablanca US Holdings, Inc. 1st Lien | 3.000% due 01/15/22 (Ê) | 495 | 497 | ||||||||
Term Loan | Chase Issuance Trust | ||||||||||
5.897% due 02/21/24 (Ê) | 1,250 | 1,244 | |||||||||
Cast & Crew Payroll LLC 2nd Lien Term | Series 2013-A7 Class A | ||||||||||
Loan | 0.617% due 09/15/20 (Ê) | 1,595 | 1,602 | ||||||||
8.900% due 08/03/23 (Ê) | 185 | 183 | Series 2014-A6 Class A6 | ||||||||
1.260% due 07/15/19 | 400 | 400 | |||||||||
Catalent Pharma Solutions, Inc. | Checkout Holding Corp. 1st Lien Term | ||||||||||
4.750% due 12/15/24 (Þ) | 1,920 | 2,223 | Loan B | ||||||||
CBS Radio, Inc. | 4.500% due 04/09/21 (Ê) | 1,910 | 1,748 | ||||||||
7.250% due 11/01/24 (Þ) | 475 | 517 | Checkout Holding Corp. 2nd Lien Term | ||||||||
CBS Radio, Inc. Term Loan B | Loan | ||||||||||
4.500% due 10/17/23 (Ê) | 527 | 530 | 7.750% due 04/09/22 (Ê) | 750 | 566 | ||||||
CCC Information Services, Inc. 1st Lien | Chemours Co. (The) Term Loan B | ||||||||||
Term Loan | 3.490% due 05/12/22 | 342 | 345 | ||||||||
4.040% due 03/29/24 | 250 | 249 | |||||||||
CCO Holdings LLC / CCO Holdings | Cheniere Corpus Christi Holdings, LLC | ||||||||||
Capital Corp. | 5.875% due 03/31/25 (Þ) | 1,295 | 1,379 | ||||||||
5.875% due 04/01/24 (Þ) | 1,305 | 1,396 | Chesapeake Energy Corp. | ||||||||
Cedar Fair LP/Canada's Wonderland | 4.875% due 04/15/22 | 170 | 156 | ||||||||
Co./Magnum Management | Chevron Corp. | ||||||||||
Corp./Mellennium Operations LLC | 1.537% due 05/16/18 (Ê) | 1,500 | 1,508 | ||||||||
5.375% due 04/15/27 (Þ) | 104 | 107 | 2.100% due 05/16/21 | 900 | 898 | ||||||
Cedar Fair, LP / Canada's Wonderland | China Evergrande Group | ||||||||||
Co. / Magnum Management Corp. |
See accompanying notes which are an integral part of the financial statements.
308 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
12.000% due 02/17/20 | 500 | 556 | 4.500% due 02/13/24 (Ê) | 499 | 505 | ||||||
CHS/Community Health Systems, Inc. | Crosby US Acquisition Corp. 1st Lien | ||||||||||
5.125% due 08/01/21 | 495 | 491 | Term Loan | ||||||||
6.875% due 02/01/22 | 1,355 | 1,121 | 4.054% due 11/22/20 (Ê) | 499 | 462 | ||||||
CHS/Community Health Systems, Inc. | Crown Americas LLC / Crown Americas | ||||||||||
1st Lien Term Loan G | Capital Corp. V | ||||||||||
3.804% due 12/31/19 (Ê) | 1,714 | 1,707 | 4.250% due 09/30/26 (Þ) | 475 | 465 | ||||||
Cisco Systems, Inc. | CSC Holdings LLC | ||||||||||
1.400% due 09/20/19 | 1,750 | 1,739 | 5.500% due 04/15/27 (Þ) | 1,000 | 1,034 | ||||||
Cision, Inc. Term Loan B | CSC Holdings LLC 1st Lien Term Loan | ||||||||||
7.147% due 05/12/23 | 1,489 | 1,497 | 3.244% due 07/09/25 | 492 | 492 | ||||||
CITGO Petroleum Corp. | Cvent, Inc. 1st Lien Term Loan B | ||||||||||
6.250% due 08/15/22 (Þ) | 1,195 | 1,216 | 5.000% due 11/29/23 (Ê) | 500 | 503 | ||||||
Citibank Credit Card Issuance Trust | DaVita, Inc. | ||||||||||
Series 2007-A8 Class A8 | 5.125% due 07/15/24 | 905 | 930 | ||||||||
5.650% due 09/20/19 | 250 | 254 | DBP Holding Corp. | ||||||||
Series 2014-A6 Class A6 | 7.750% due 10/15/20 (Þ) | 2,160 | 1,426 | ||||||||
2.150% due 07/15/21 | 1,040 | 1,050 | DCP Midstream LLC | ||||||||
Cleaver-Brooks, Inc. | 5.350% due 03/15/20 (Þ) | 905 | 945 | ||||||||
8.750% due 12/15/19 (Þ) | 4,730 | 4,884 | DCP Midstream Operating, LP | ||||||||
3.875% due 03/15/23 | 1,040 | 1,014 | |||||||||
Cloud Crane LLC | 5.600% due 04/01/44 | 325 | 310 | ||||||||
10.125% due 08/01/24 (Þ) | 800 | 854 | |||||||||
Commercial Barge Line Co. 1st Lien | Dell International LLC 1st Lien Term | ||||||||||
Term Loan B | Loan B | ||||||||||
9.750% due 11/12/20 (Ê) | 846 | 768 | 3.500% due 09/07/23 (Ê) | 998 | 1,001 | ||||||
CommScope, Inc. | Dell, Inc. | ||||||||||
5.500% due 06/15/24 (Þ) | 720 | 756 | 5.875% due 06/15/19 | 700 | 745 | ||||||
Community Health Systems, Inc. Term | 7.100% due 04/15/28 | 1,365 | 1,481 | ||||||||
Loan | Denbury Resources, Inc. | ||||||||||
4.054% due 01/27/21 (Ê) | 1,232 | 1,224 | 9.000% due 05/15/21 (Þ) | 60 | 63 | ||||||
Conduent Finance, Inc. / Xerox Business | 5.500% due 05/01/22 | 965 | 719 | ||||||||
Services LLC | 4.625% due 07/15/23 | 680 | 466 | ||||||||
10.500% due 12/15/24 (Þ) | 3,710 | 4,304 | Deutsche Bank Capital Finance Trust I | ||||||||
Constellation Brands, Inc. Term Loan B | 1.750% due 06/27/35 (Ê)(ƒ) | 327 | 303 | ||||||||
4.887% due 11/14/23 | 125 | 126 | |||||||||
Constellis Holdings LLC / Constellis | Deutsche Postbank Funding Trust IV | ||||||||||
5.983% due 06/29/49 (ƒ) | 1,000 | 1,079 | |||||||||
Finance Corp. | Diamond 1 Finance Corp. / Diamond 2 | ||||||||||
9.750% due 05/15/20 (Þ) | 500 | 538 | |||||||||
Constellis Holdings LLC 2nd Lien Term | Finance Corp | ||||||||||
5.875% due 06/15/21 (Þ) | 177 | 188 | |||||||||
Loan | 7.125% due 06/15/24 (Þ) | 126 | 139 | ||||||||
10.156% due 04/21/25 (Ê) | 250 | 246 | |||||||||
Constellis Holdings LLC Term Loan B | Diamond Offshore Drilling, Inc. | ||||||||||
6.155% due 04/13/24 | 1,000 | 988 | 5.875% due 05/01/19 | 1,072 | 1,114 | ||||||
4.875% due 11/01/43 | 815 | 589 | |||||||||
Continental Resources, Inc. | |||||||||||
5.000% due 09/15/22 | 490 | 494 | DigitalGlobe, Inc. 1st Lien Term Loan B | ||||||||
3.800% due 06/01/24 | 910 | 855 | 3.743% due 12/22/23 (Ê) | 1,995 | 2,002 | ||||||
ConvergeOne Holdings Corp. 1st Lien | DISH DBS Corp. | ||||||||||
Term Loan | 5.875% due 11/15/24 | 850 | 891 | ||||||||
6.522% due 06/17/20 (Ê) | 243 | 243 | Dresdner Funding Trust I | ||||||||
Cortes NP Acquisition Corp. Term Loan | 8.151% due 06/30/31 (Þ) | 625 | 742 | ||||||||
B | Series REGS | ||||||||||
5.039% due 11/30/23 | 1,210 | 1,217 | 8.151% due 06/30/31 | 400 | 475 | ||||||
Covanta Holding Corp. | Dynegy, Inc. | ||||||||||
6.375% due 10/01/22 | 2,130 | 2,191 | 6.750% due 11/01/19 | 1,595 | 1,619 | ||||||
CPI Acquisition, Inc. Term Loan B | 7.625% due 11/01/24 | 2,910 | 2,663 | ||||||||
5.834% due 08/17/22 (Ê) | 680 | 634 | EagleView Technology Corp. 1st Lien | ||||||||
CPM Holdings, Inc. 2nd Lien Term Loan | Term Loan | ||||||||||
0.250% due 02/12/22 (Å) | 3,070 | 3,062 | 5.410% due 07/15/22 (Ê) | 124 | 124 | ||||||
Creative Artists Agency LLC 1st Lien | EagleView Technology Corp. 2nd Lien | ||||||||||
Term Loan B | Term Loan |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 309
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
9.410% due 09/28/23 (Ê) | 375 | 372 | First Data Corp. | ||||||||
Eastman Kodak Co. Term Loan | 7.000% due 12/01/23 (Þ) | 2,925 | 3,136 | ||||||||
7.422% due 09/03/19 (Ê) | 984 | 985 | 5.750% due 01/15/24 (Þ) | 530 | 550 | ||||||
Education Management LLC Term Loan | First Data Corp. Term Loan | ||||||||||
B | 3.988% due 07/10/22 (Ê) | 1,000 | 1,005 | ||||||||
8.655% due 07/02/20 | 303 | 6 | FirstEnergy Solutions Corp. | ||||||||
Eldorado Resorts LLC Term Loan B | 6.050% due 08/15/21 | 1,300 | 575 | ||||||||
3.197% due 03/13/24 | 500 | 499 | Ford Credit Auto Owner Trust | ||||||||
Embarq Corp. | Series 2015-A Class A3 | ||||||||||
7.995% due 06/01/36 | 1,530 | 1,559 | 1.280% due 09/15/19 | 1,262 | 1,262 | ||||||
EMC Corp. | Series 2015-B Class A3 | ||||||||||
1.875% due 06/01/18 | 650 | 647 | 1.160% due 11/15/19 | 736 | 736 | ||||||
2.650% due 06/01/20 | 1,450 | 1,419 | Foresight Energy LLC / Foresight Energy | ||||||||
3.375% due 06/01/23 | 1,105 | 1,065 | Finance Corp. | ||||||||
Emerald 3, Ltd. 2nd Lien Term Loan | 11.500% due 04/01/23 (Þ) | 9,920 | 9,399 | ||||||||
8.147% due 05/09/22 | 800 | 723 | Fortress Transportation and | ||||||||
Emerald US, Inc. Term Loan B1 | Infrastructure Investors LLC | ||||||||||
5.147% due 05/09/21 | 1,000 | 940 | 6.750% due 03/15/22 (Þ) | 3,570 | 3,534 | ||||||
Endo Finance LLC / Endo Finco, Inc. | Forum Energy Technologies, Inc. | ||||||||||
5.375% due 01/15/23 (Þ) | 65 | 56 | 6.250% due 10/01/21 | 1,870 | 1,856 | ||||||
EnergySolutions LLC 1st Lien Term | FPC Holdings, Inc. 1st Lien Term Loan | ||||||||||
Loan B | 5.250% due 11/27/19 (Ê) | 2,069 | 1,973 | ||||||||
6.750% due 05/29/20 (Ê) | 1,693 | 1,710 | FPC Holdings, Inc. 2nd Lien Term Loan | ||||||||
EnLink Midstream Partners, LP | 9.250% due 05/27/20 (Å)(Ê) | 1,080 | 944 | ||||||||
4.150% due 06/01/25 | 975 | 979 | Freeport-McMoRan, Inc. | ||||||||
5.050% due 04/01/45 | 690 | 653 | 3.550% due 03/01/22 | 1,300 | 1,222 | ||||||
Envision Healthcare Corp. | 3.875% due 03/15/23 | 1,300 | 1,206 | ||||||||
5.125% due 07/01/22 (Þ) | 1,350 | 1,370 | 4.550% due 11/14/24 | 1,050 | 986 | ||||||
6.250% due 12/01/24 (Þ) | 398 | 419 | 5.450% due 03/15/43 | 1,160 | 989 | ||||||
Envision Healthcare Corp. Term Loan B | Frontier Communications Corp. | ||||||||||
4.150% due 11/17/23 (Ê) | 998 | 1,007 | 7.125% due 01/15/23 | 100 | 87 | ||||||
Enviva Partners, LP / Enviva Partners | 7.625% due 04/15/24 | 1,595 | 1,368 | ||||||||
Finance Corp. | 6.875% due 01/15/25 | 265 | 222 | ||||||||
8.500% due 11/01/21 (Þ) | 1,600 | 1,696 | 9.000% due 08/15/31 | 975 | 834 | ||||||
Epic Health Services, Inc. 1st Term Loan | FullBeauty Brands Holding Corp. 2nd | ||||||||||
1.055% due 03/28/24 | 200 | 200 | Lien Term Loan | ||||||||
Epic Health Services, Inc. 2nd Lien | 10.000% due 09/22/23 | 500 | 302 | ||||||||
Term Loan | FullBeauty Brands Holdings Corp. 1st | ||||||||||
9.065% due 02/21/24 | 5,010 | 5,010 | Lien Term Loan | ||||||||
ESH Hospitality, Inc. | 5.750% due 10/14/22 (Ê) | 743 | 574 | ||||||||
5.250% due 05/01/25 (Þ) | 1,200 | 1,215 | Gartner, Inc. | ||||||||
ESH Hospitality, Inc. Term Loan B | 5.125% due 04/01/25 (Þ) | 216 | 224 | ||||||||
3.493% due 08/30/23 (Ê) | 495 | 497 | Gartner, Inc. Term Loan B | ||||||||
Eskom Holdings SOC, Ltd. | 2.992% due 03/14/24 | 500 | 503 | ||||||||
Series REGS | Gates Global LLC / Gates Global Co. | ||||||||||
6.750% due 08/06/23 | 1,000 | 1,028 | 6.000% due 07/15/22 (Þ) | 1,070 | 1,075 | ||||||
7.125% due 02/11/25 | 5,100 | 5,245 | General Mills, Inc. | ||||||||
Explorer Holdings, Inc. Term Loan B | 6.590% due 10/15/18 | 2,000 | 2,131 | ||||||||
6.035% due 05/03/23 (Ê) | 496 | 501 | Genesys Telecommunications | ||||||||
Fairmount Santrol, Inc. 1st Lien Term | Laboratories, Inc./Greeneden Lux 3 | ||||||||||
Loan B2 | Sarl | ||||||||||
4.647% due 09/05/19 (Ê) | 3,382 | 3,323 | 10.000% due 11/30/24 (Þ) | 549 | 608 | ||||||
FBM Finance, Inc. | GENEX Services, Inc. 1st Lien Term | ||||||||||
8.250% due 08/15/21 (Þ) | 5,000 | 5,394 | Loan | ||||||||
Fieldwood Energy LLC 1st Lien Term | 5.250% due 05/30/21 (Ê) | 479 | 481 | ||||||||
Loan | Genow, a QoL Healthcare Co. LLC 2nd | ||||||||||
8.375% due 09/30/20 (Ê) | 1,240 | 1,120 | Lien Term Loan | ||||||||
Fieldwood Energy LLC 2nd Lien Term | 9.147% due 10/28/24 (Ê) | 1,270 | 1,276 | ||||||||
Loan | Genworth Holdings, Inc. | ||||||||||
8.375% due 09/30/20 (Ê) | 555 | 432 | 7.200% due 02/15/21 | 910 | 862 |
See accompanying notes which are an integral part of the financial statements.
310 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
7.625% due 09/24/21 | 1,040 | 991 | 7.875% due 10/01/21 (Þ) | 1,040 | 1,090 | ||||||
GEO Group, Inc. (The) | Hughes Satellite Systems Corp. | ||||||||||
5.125% due 04/01/23 | 930 | 935 | 5.250% due 08/01/26 (Þ) | 435 | 443 | ||||||
6.000% due 04/15/26 | 495 | 509 | 6.625% due 08/01/26 (Þ) | 350 | 360 | ||||||
Getty Images, Inc. 1st Lien Term Loan B | HVB Funding Trust III | ||||||||||
4.750% due 10/18/19 (Ê) | 750 | 662 | 9.000% due 10/22/31 (Þ) | 630 | 771 | ||||||
Go Daddy Operating Co. LLC 1st Lien | Hypo Real Estate International Trust I | ||||||||||
Term Loan | 5.864% due 06/29/49 (ƒ) | 600 | 650 | ||||||||
3.493% due 02/06/24 (Ê) | 500 | 502 | Hyundai Auto Receivables Trust | ||||||||
Goldman Sachs Capital I | Series 2015-A Class A3 | ||||||||||
6.345% due 02/15/34 | 1,355 | 1,621 | 1.050% due 04/15/19 | 713 | 713 | ||||||
Gray Television, Inc. | IASIS Healthcare LLC / IASIS Capital | ||||||||||
5.125% due 10/15/24 (Þ) | 475 | 476 | Corp. | ||||||||
Grifols Worldwide Operations USA Inc. | 8.375% due 05/15/19 | 3,170 | 3,091 | ||||||||
1st Lien Term Loan B | Icahn Enterprises LP / Icahn Enterprises | ||||||||||
3.195% due 01/31/25 (Ê) | 1,344 | 1,347 | Finance Corp. | ||||||||
Gruden Acquisition, Inc. 1st Lien Term | 6.250% due 02/01/22 (Þ) | 129 | 134 | ||||||||
Loan | 6.750% due 02/01/24 (Þ) | 129 | 135 | ||||||||
5.897% due 08/18/22 (Ê) | 1,496 | 1,446 | Indigo Merger Sub I, Inc. 1st Lien Term | ||||||||
GTT Escrow Corp. | Loan | ||||||||||
7.875% due 12/31/24 (Þ) | 2,020 | 2,106 | 4.750% due 07/08/21 (Ê) | 744 | 750 | ||||||
Gulfport Energy Corp. | Ingles Markets, Inc. | ||||||||||
6.625% due 05/01/23 | 30 | 30 | 5.750% due 06/15/23 | 1,500 | 1,507 | ||||||
6.375% due 05/15/25 (Þ) | 1,035 | 1,031 | Ingram Micro, Inc. | ||||||||
Harland Clarke Holdings Corp. Term | 5.450% due 12/15/24 | 900 | 903 | ||||||||
Loan B6 | International Game Technology | ||||||||||
6.646% due 02/02/22 | 1,332 | 1,333 | 7.500% due 06/15/19 | 455 | 500 | ||||||
Harsco Corp. Term Loan B | International Wire Group, Inc. | ||||||||||
6.000% due 10/21/23 | 998 | 1,015 | 10.750% due 08/01/21 (Þ) | 1,460 | 1,431 | ||||||
Hawaiian Telcom Communications, Inc. | Intrawest Operations Group LLC Term | ||||||||||
Term Loan B | Loan | ||||||||||
7.250% due 06/06/19 (Ê) | 1,222 | 1,221 | 4.500% due 12/09/20 (Ê) | 1,831 | 1,838 | ||||||
HCA Holdings, Inc. | Intrepid Aviation Group Holdings LLC / | ||||||||||
6.250% due 02/15/21 | 2,045 | 2,219 | Intrepid Finance Co. | ||||||||
HCA, Inc. | 6.875% due 02/15/19 (Þ) | 1,605 | 1,533 | ||||||||
5.875% due 05/01/23 | 385 | 419 | inVentiv Group Holdings, Inc./inVentiv | ||||||||
HCA, Inc. Term Loan B8 | Health Inc/inVentiv Health Clinical | ||||||||||
3.243% due 02/15/24 | 1,496 | 1,510 | Inc | ||||||||
HD Supply, Inc. | 7.500% due 10/01/24 (Þ) | 4,070 | 4,202 | ||||||||
5.750% due 04/15/24 (Þ) | 1,385 | 1,472 | Iron Mountain US Holdings, Inc. | ||||||||
HealthSouth Corp. | 5.375% due 06/01/26 (Þ) | 245 | 249 | ||||||||
5.750% due 11/01/24 | 1,650 | 1,681 | Iron Mountain, Inc. | ||||||||
Heartland Dental LLC 2nd Lien Term | 4.375% due 06/01/21 (Þ) | 245 | 254 | ||||||||
Loan | Israel Electric Corp., Ltd. | ||||||||||
9.750% due 06/21/19 (Ê) | 5,120 | 5,069 | Series 6 | ||||||||
Hexion, Inc. | 5.000% due 11/12/24 (Þ) | 2,000 | 2,158 | ||||||||
6.625% due 04/15/20 | 7,700 | 7,276 | J Crew Group, Inc. Term Loan B | ||||||||
High Ridge Brands Co. | 4.147% due 03/05/21 (Ê) | 490 | 322 | ||||||||
8.875% due 03/15/25 (Þ) | 2,920 | 3,051 | Jack Ohio Finance LLC / Jack Ohio | ||||||||
Honda Auto Receivables Owner Trust | Finance 1 Corp. | ||||||||||
6.750% due 11/15/21 (Þ) | 1,200 | 1,254 | |||||||||
Series 2016-2 Class A2 | 10.250% due 11/15/22 (Þ) | 1,490 | 1,615 | ||||||||
1.130% due 09/17/18 | 302 | 302 | |||||||||
Series 2016-4 Class A2 | JC Penney Corp., Inc. | ||||||||||
1.040% due 04/18/19 | 1,000 | 998 | 7.400% due 04/01/37 | 975 | 797 | ||||||
Howard University | Johnson & Johnson | ||||||||||
1.050% due 08/01/31 (Ê) | 1,000 | 1,000 | 1.325% due 03/01/19 (Ê) | 350 | 352 | ||||||
2.250% due 03/03/22 | 1,100 | 1,111 | |||||||||
HRG Group, Inc. | Jones Energy Holdings LLC / Jones | ||||||||||
7.750% due 01/15/22 | 12,143 | 12,826 | Energy Finance Corp. | ||||||||
HUB International, Ltd. | 6.750% due 04/01/22 | 600 | 504 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 311
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
9.250% due 03/15/23 | 880 | 801 | Mergermarket USA, Inc. 1st Lien Term | ||||||||
Joseph T Ryerson & Son, Inc. | Loan | ||||||||||
11.000% due 05/15/22 (Þ) | 4,740 | 5,350 | 4.554% due 02/04/21 (Ê) | 1,820 | 1,820 | ||||||
MGM Growth Properties Operating | |||||||||||
Joy Global, Inc. | Partnership, LP Term Loan B | ||||||||||
5.125% due 10/15/21 | 730 | 806 | 3.493% due 04/25/23 (Ê) | 495 | 496 | ||||||
Kennedy-Wilson, Inc. | MGM Resorts International | ||||||||||
5.875% due 04/01/24 | 1,260 | 1,314 | 4.625% due 09/01/26 | 1,640 | 1,636 | ||||||
Kloeckner Pentaplast of America, Inc. | Microsoft Corp. | ||||||||||
7.125% due 11/01/20 (Þ) | 1,250 | 1,409 | 1.300% due 11/03/18 | 1,530 | 1,529 | ||||||
KRATON Polymers LLC 1st Lien Term | |||||||||||
Loan B | MidOcean Credit CLO III | ||||||||||
5.000% due 01/06/22 (Ê) | 825 | 837 | Series 2014-3A Class E | ||||||||
Krayton Polymars LLC / Krayton | 5.947% due 07/21/26 (Ê)(Þ) | 830 | 790 | ||||||||
Polymars Capital Co. | Mission Broadcasting, Inc. 1st Lien Term | ||||||||||
7.000% due 04/15/25 (Þ) | 949 | 997 | Loan B | ||||||||
3.994% due 01/17/24 (Ê) | 169 | 170 | |||||||||
Kronos, Inc. 1st Lien Term Loan | MPT Operating Partnership, LP / MPT | ||||||||||
5.034% due 11/01/23 (Ê) | 1,995 | 2,001 | Finance Corp. | ||||||||
L Brands, Inc. | 4.000% due 08/19/22 | 1,000 | 1,197 | ||||||||
6.950% due 03/01/33 | 980 | 936 | 6.375% due 03/01/24 | 955 | 1,034 | ||||||
Landry's, Inc. 1st Lien Term Loan | MRI Software LLC Delayed Draw Term | ||||||||||
3.733% due 09/22/23 (Ê) | 617 | 618 | Loan | ||||||||
Lannett Co., Inc. Term Loan A | 5.397% due 09/29/23 | 272 | 269 | ||||||||
5.750% due 11/25/20 (Ê) | 721 | 714 | MRI Software LLC Term Loan | ||||||||
Laredo Petroleum, Inc. | 5.397% due 06/18/21 | 724 | 717 | ||||||||
5.625% due 01/15/22 | 1,010 | 1,014 | Murphy Oil Corp. | ||||||||
Lattice Semiconductor Corp. 1st Lien | 4.700% due 12/01/22 | 1,170 | 1,144 | ||||||||
Term Loan B | Nabors Industries, Inc. | ||||||||||
5.250% due 03/10/21 (Ê) | 695 | 693 | 5.000% due 09/15/20 | 975 | 1,007 | ||||||
Learfield Communications, Inc. 1st Lien | 4.625% due 09/15/21 | 845 | 853 | ||||||||
Term Loan | |||||||||||
4.250% due 11/17/23 | 249 | 251 | Natural Resource Partners LP | ||||||||
10.500% due 03/15/22 (Þ) | 1,665 | 1,740 | |||||||||
Level 3 Financing, Inc. | Nautilus Merger Sub, Inc. 2nd Lien Term | ||||||||||
5.125% due 05/01/23 | 335 | 344 | Loan | ||||||||
5.375% due 01/15/24 | 1,240 | 1,289 | 6.750% due 03/13/22 (Ê) | 380 | 368 | ||||||
Level 3 Financing, Inc. Term Loan B | Navient Corp. | ||||||||||
3.241% due 02/22/24 (Ê) | 1,000 | 1,003 | Series MTN | ||||||||
Levi Strauss & Co. | 8.450% due 06/15/18 | 1,460 | 1,562 | ||||||||
3.375% due 03/15/27 (Þ) | 1,055 | 1,158 | 4.875% due 06/17/19 | 1,350 | 1,394 | ||||||
LifePoint Health, Inc. | 8.000% due 03/25/20 | 425 | 467 | ||||||||
5.375% due 05/01/24 (Þ) | 1,435 | 1,449 | 5.625% due 08/01/33 | 975 | 780 | ||||||
Lions Gate Enterntainment, Inc. 1st Lien | |||||||||||
Term Loan | Navistar, Inc. 1st Lien Term Loan B | ||||||||||
3.982% due 10/12/23 | 1,200 | 1,206 | 5.000% due 08/07/20 (Ê) | 494 | 500 | ||||||
Lux Finco Sarl Term Loan B1 | Neiman Marcus Group, Ltd. LLC | ||||||||||
9.500% due 10/16/23 | 1,840 | 1,822 | 8.750% due 10/15/21 (Þ) | 2,490 | 1,345 | ||||||
MacDermid, Inc. Term Loan B4 | New Albertson's, Inc. | ||||||||||
5.000% due 06/07/23 (Ê) | 1,472 | 1,478 | Series MTNC | ||||||||
6.625% due 06/01/28 | 600 | 537 | |||||||||
Match Group, Inc. | New Arclin US Holding Corp. 2nd Lien | ||||||||||
6.375% due 06/01/24 | 369 | 402 | Term Loan | ||||||||
Match Group, Inc. Term Loan B1 | 0.170% due 02/14/25 | 1,430 | 1,441 | ||||||||
4.277% due 10/27/22 (Ê) | 355 | 359 | New Millennium Holdco, Inc. 1st Lien | ||||||||
MCC Iowa LLC Term Loan H | Term Loan | ||||||||||
3.450% due 01/29/21 (Ê) | 468 | 470 | 7.500% due 12/21/20 (Ê) | 488 | 260 | ||||||
Meccanica Holdings USA, Inc. | Nexstar Broadcasting, Inc. 1st Lien Term | ||||||||||
6.250% due 07/15/19 (Þ) | 965 | 1,033 | Loan B | ||||||||
3.994% due 01/17/24 (Ê) | 1,740 | 1,756 | |||||||||
Mercer International, Inc. | |||||||||||
6.500% due 02/01/24 (Þ) | 2,770 | 2,860 | Nexstar Escrow Corp. | ||||||||
5.625% due 08/01/24 (Þ) | 475 | 487 | |||||||||
Merck & Co., Inc. | |||||||||||
1.412% due 05/18/18 (Ê) | 2,275 | 2,283 | Nielsen Finance LLC Term Loan B4 |
See accompanying notes which are an integral part of the financial statements.
312 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
2.990% due 10/24/23 | 250 | 251 | 5.625% due 01/15/27 (Þ) | 129 | 130 | ||||||
Nissan Auto Receivables Owner Trust | Penn National Gaming, Inc. 1st Lien | ||||||||||
Series 2013-C Class A3 | Term Loan B | ||||||||||
0.670% due 08/15/18 | 31 | 31 | 3.541% due 01/19/24 (Ê) | 500 | 503 | ||||||
Series 2014-A Class A3 | PetSmart, Inc. | ||||||||||
0.720% due 08/15/18 | 59 | 59 | 7.125% due 03/15/23 (Þ) | 1,670 | 1,524 | ||||||
PFS Acquisition LLC 2nd Lien Term | |||||||||||
Series 2016-A Class A2A | Loan | ||||||||||
1.060% due 02/15/19 | 263 | 263 | 8.250% due 01/31/22 (Ê) | 7,390 | 6,947 | ||||||
Series 2017-A Class A2B | Pharmaceutical Product Development | ||||||||||
1.037% due 01/15/20 (Ê) | 250 | 250 | LLC Term Loan B | ||||||||
NN, Inc. Term Loan | 4.397% due 08/18/22 (Ê) | 992 | 997 | ||||||||
4.733% due 03/22/21 | 250 | 250 | PHI, Inc. | ||||||||
Norddeutsche Landesbank Girozentrale | 5.250% due 03/15/19 | 1,610 | 1,513 | ||||||||
Series REGS | Pilgrim's Pride Corp. | ||||||||||
6.250% due 04/10/24 | 800 | 788 | 5.750% due 03/15/25 (Þ) | 1,065 | 1,108 | ||||||
Norfolk Southern Corp. | Pinnacle Entertainment, Inc. | ||||||||||
1.800% due 02/14/20 | 1,340 | 1,341 | 5.625% due 05/01/24 (Þ) | 475 | 490 | ||||||
North American Lifting Holdings, Inc. | Plantronics, Inc. | ||||||||||
1st Lien Term Loan | 5.500% due 05/31/23 (Þ) | 900 | 916 | ||||||||
5.647% due 11/27/20 (Ê) | 968 | 907 | Plastipak Holdings, Inc. | ||||||||
North American Lifting Holdings, Inc. | 6.500% due 10/01/21 (Þ) | 1,180 | 1,212 | ||||||||
2nd Lien Term Loan | |||||||||||
10.147% due 11/27/21 (Ê) | 250 | 195 | Platform Specialty Products Corp. | ||||||||
6.500% due 02/01/22 (Þ) | 1,680 | 1,722 | |||||||||
Novelis Corp. | |||||||||||
6.250% due 08/15/24 (Þ) | 905 | 957 | Playa Resorts Holding BV Term Loan B | ||||||||
5.875% due 09/30/26 (Þ) | 1,125 | 1,156 | 4.170% due 04/05/24 | 500 | 500 | ||||||
NPC International, Inc. 1st Lien Term | Portillo's Holdings, LLC 1st Lien Term | ||||||||||
Loan | Loan | ||||||||||
4.500% due 03/17/24 | 225 | 227 | 5.647% due 08/01/21 (Ê) | 491 | 494 | ||||||
NRG Yield Operating LLC | Post Holdings, Inc. | ||||||||||
5.000% due 09/15/26 (Þ) | 1,400 | 1,372 | 6.000% due 12/15/22 (Þ) | 5 | 5 | ||||||
5.000% due 08/15/26 (Þ) | 1,435 | 1,428 | |||||||||
NVA Holdings, Inc. 2nd Lien Term Loan | Pre-Paid Legal Services, Inc. 2nd Lien | ||||||||||
8.147% due 08/14/22 (Ê) | 1,040 | 1,053 | Term Loan | ||||||||
Oasis Petroleum, Inc. | 10.250% due 07/01/20 (Ê) | 500 | 499 | ||||||||
6.875% due 01/15/23 | 1,115 | 1,126 | Prestige Brands, Inc. | ||||||||
Opal Acquisition, Inc. | 6.375% due 03/01/24 (Þ) | 1,000 | 1,070 | ||||||||
8.875% due 12/15/21 (Þ) | 10,620 | 9,744 | Prime Security Services Borrower LLC | ||||||||
Optimas OE Solutions Holding LLC / | Term Loan B1 | ||||||||||
Optimas OE Solutions, Inc. | 4.250% due 05/02/22 (Ê) | 1,521 | 1,536 | ||||||||
8.625% due 06/01/21 (Å) | 3,980 | 3,761 | Privatbank CJSC Via UK SPV Credit | ||||||||
Optiv, Inc. 1st Lien Term Loan | Finance PLC | ||||||||||
4.250% due 02/01/24 (Ê) | 500 | 499 | 11.000% due 02/09/21 | 3,577 | 358 | ||||||
Oschadbank Via SSB #1 PLC | Procter & Gamble Co. (The) | ||||||||||
9.375% due 03/10/23 (Þ) | 4,043 | 4,115 | 1.440% due 11/01/19 (Ê) | 559 | 560 | ||||||
8.207% due 01/19/24 (Å)(Ê) | 2,800 | 2,353 | Project Alpha Intermediate Holding, Inc. | ||||||||
9.625% due 03/20/25 (Þ) | 2,400 | 2,397 | Term Loan B | ||||||||
4.670% due 04/18/24 | 1,000 | 995 | |||||||||
PACCAR Financial Corp. | Prowler Acquisition Corp. 1st Lien Term | ||||||||||
Series MTN | Loan | ||||||||||
1.700% due 12/06/18 (Ê) | 2,275 | 2,294 | 5.647% due 01/28/20 (Ê) | 983 | 787 | ||||||
Party City Holdings, Inc. | PSPC Escrow Corp. | ||||||||||
6.125% due 08/15/23 (Þ) | 1,705 | 1,756 | 6.000% due 02/01/23 (Þ) | 810 | 927 | ||||||
Pattern Energy Group, Inc. | Series REGS | ||||||||||
5.875% due 02/01/24 (Þ) | 129 | 132 | 6.000% due 02/01/23 | 1,495 | 1,711 | ||||||
Patterson Co. 2nd Lien Term Loan | PulteGroup, Inc. | ||||||||||
9.500% due 08/28/23 (Å)(Ê) | 3,490 | 3,403 | 6.000% due 02/15/35 | 650 | 647 | ||||||
Pelican Products, Inc. 1st Lien Term | |||||||||||
Loan B1 | QCP SNF West/Central/East REIT LLC | ||||||||||
5.397% due 04/11/20 (Ê) | 965 | 963 | 8.125% due 11/01/23 (Þ) | 930 | 972 | ||||||
Penn National Gaming, Inc. |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 313
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Quest Software US Holdings, Inc. Term | 4.875% due 09/01/24 (Þ) | 2,455 | 2,476 | ||||||||
Loan B | Scientific Games International, Inc. | ||||||||||
7.000% due 10/31/22 (Ê) | 1,995 | 2,027 | 7.000% due 01/01/22 (Þ) | 1,715 | 1,836 | ||||||
Quincy Newspapers, Inc. Term Loan B | Scientific Games International, Inc. Term | ||||||||||
5.000% due 11/02/22 (Ê) | 458 | 462 | Loan B3 | ||||||||
Quintiles IMS, Inc. | 4.994% due 10/01/21 (Ê) | 2,104 | 2,135 | ||||||||
4.125% due 04/01/23 (Þ) | 2,500 | 2,849 | SCS Holdings, Inc. Term Loan | ||||||||
3.500% due 10/15/24 (Þ) | 205 | 230 | 5.250% due 10/30/22 (Ê) | 477 | 481 | ||||||
Quintilies IMS, Inc. | Sealed Air Corp. | ||||||||||
3.250% due 03/15/25 (Þ) | 120 | 131 | 6.875% due 07/15/33 (Þ) | 300 | 326 | ||||||
Qwest Capital Funding, Inc. | Series REGS | ||||||||||
7.750% due 02/15/31 | 400 | 387 | 4.500% due 09/15/23 | 1,670 | 2,030 | ||||||
Rackspace Hosting, Inc. 1st Lien Term | SeaWorld Parks & Entertainment, Inc. | ||||||||||
Loan | Term Loan B2 | ||||||||||
4.535% due 10/26/23 (Ê) | 1,995 | 2,009 | 4.248% due 05/14/20 (Ê) | 1,500 | 1,500 | ||||||
Radio One, Inc. | Serta Simmons Holdings LLC 2nd Lien | ||||||||||
7.375% due 04/15/22 (Þ) | 425 | 444 | Term Loan | ||||||||
9.038% due 10/20/24 | 1,370 | 1,387 | |||||||||
Radio One, Inc. 1st Lien Term Loan B | SESAC Holdco II LLC 2nd Lien Term | ||||||||||
5.080% due 04/05/23 (Ê) | 500 | 497 | Loan | ||||||||
Range Resources Corp. | 8.303% due 02/10/25 | 500 | 500 | ||||||||
4.875% due 05/15/25 | 845 | 811 | SESI LLC | ||||||||
RBS Capital Trust B | 7.125% due 12/15/21 | 2,195 | 2,217 | ||||||||
6.800% due 12/31/49 (ƒ) | 1,000 | 1,012 | Signode Industrial Group US, Inc. 1st | ||||||||
Real Alloy Holding, Inc. | Lien Term Loan B | ||||||||||
10.000% due 01/15/19 (Þ) | 5,010 | 5,048 | 3.897% due 05/01/21 (Ê) | 1,242 | 1,247 | ||||||
RegionalCare Hospital Partners | Silgan Holdings, Inc. | ||||||||||
Holdings, Inc. | 3.250% due 03/15/25 (Þ) | 1,900 | 2,090 | ||||||||
8.250% due 05/01/23 (Þ) | 6,915 | 7,357 | Simmons Foods, Inc. | ||||||||
Rent-A-Center, Inc. | 7.875% due 10/01/21 (Þ) | 4,100 | 4,356 | ||||||||
6.625% due 11/15/20 | 1,950 | 1,799 | Sirius XM Radio, Inc. | ||||||||
4.750% due 05/01/21 | 370 | 324 | 5.375% due 07/15/26 (Þ) | 2,760 | 2,826 | ||||||
RentPath, Inc. 1st Lien Term Loan | SIRVA Worldwide, Inc. Term Loan | ||||||||||
6.250% due 12/17/21 (Ê) | 1,955 | 1,929 | 7.656% due 11/14/22 | 499 | 496 | ||||||
Republic of Armenia International Bond | Six Flags Entertainment Corp. | ||||||||||
Series REGS | 4.875% due 07/31/24 (Þ) | 1,405 | 1,417 | ||||||||
6.000% due 09/30/20 | 1,000 | 1,051 | |||||||||
Reynolds Group Holdings, Inc. 1st Lien | SM Energy Co. | ||||||||||
6.125% due 11/15/22 | 315 | 320 | |||||||||
Term Loan B | 5.000% due 01/15/24 | 140 | 132 | ||||||||
3.993% due 02/05/23 (Ê) | 995 | 1,000 | |||||||||
Reynolds Group Issuer, Inc. / Reynolds | 5.625% due 06/01/25 | 495 | 473 | ||||||||
Group Issuer LLC / Reynolds Group | 6.750% due 09/15/26 | 250 | 252 | ||||||||
Issuer Lu | Solarwinds Holdings, Inc. 1st Lien Term | ||||||||||
5.750% due 10/15/20 | 755 | 778 | Loan | ||||||||
5.125% due 07/15/23 (Þ) | 955 | 996 | 4.500% due 02/05/23 (Ê) | 1,235 | 1,241 | ||||||
7.000% due 07/15/24 (Þ) | 910 | 979 | Solera LLC / Solera Finance, Inc. | ||||||||
Rite Aid Corp. | 10.500% due 03/01/24 (Þ) | 480 | 548 | ||||||||
6.125% due 04/01/23 (Þ) | 960 | 950 | Solera LLC Term Loan B | ||||||||
Rockies Express Pipeline LLC | 4.250% due 03/04/23 (Ê) | 467 | 470 | ||||||||
5.625% due 04/15/20 (Þ) | 330 | 353 | SourceHOV LLC 1st Lien Term Loan B | ||||||||
Rowan Cos., Inc. | 7.897% due 10/31/19 (Ê) | 906 | 869 | ||||||||
4.875% due 06/01/22 | 650 | 611 | Southwestern Energy Co. | ||||||||
4.750% due 01/15/24 | 765 | 673 | 5.800% due 01/23/20 | 325 | 328 | ||||||
RP Crown Parent LLC | 4.100% due 03/15/22 | 35 | 33 | ||||||||
7.375% due 10/15/24 (Þ) | 5,460 | 5,706 | 6.700% due 01/23/25 | 2,030 | 2,020 | ||||||
RPI Finance Trust Term Loan B6 | Spectrum Brands, Inc. | ||||||||||
3.647% due 03/07/23 | 125 | 125 | 4.000% due 10/01/26 (Þ) | 910 | 1,032 | ||||||
Safeway, Inc. | Sprint Capital Corp. | ||||||||||
7.250% due 02/01/31 | 1,385 | 1,340 | 6.900% due 05/01/19 | 1,560 | 1,675 | ||||||
SBA Communications Corp. | 6.875% due 11/15/28 | 810 | 879 |
See accompanying notes which are an integral part of the financial statements.
314 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
8.750% due 03/15/32 | 1,300 | 1,600 | The Nature's Bounty Co. 1st Lien Term | ||||||||
Sprint Communications, Inc. | Loan B | ||||||||||
6.000% due 11/15/22 | 3,705 | 3,860 | 4.647% due 05/05/23 (Ê) | 496 | 498 | ||||||
Sprint Communications, Inc. 1st Lien | TIAA CLO I, Ltd. | ||||||||||
Term Loan B | Series 2016-1A Class E1 | ||||||||||
3.500% due 01/13/24 | 1,250 | 1,251 | 8.736% due 07/20/28 (Ê)(Þ) | 683 | 686 | ||||||
SS&C Technologies Holdings, Inc. | TKC Holdings, Inc. 1st Lien Term Loan | ||||||||||
5.875% due 07/15/23 | 820 | 871 | 4.700% due 02/01/23 (Ê) | 500 | 505 | ||||||
Standard Industries, Inc. | TKC Holdings, Inc. 2nd Lien Term Loan | ||||||||||
5.500% due 02/15/23 (Þ) | 1,685 | 1,752 | 8.500% due 02/01/24 (Ê) | 250 | 252 | ||||||
Station Casinos LLC 1st Lien Term | T-Mobile USA, Inc. | ||||||||||
Loan B | 6.000% due 03/01/23 | 1,630 | 1,735 | ||||||||
3.500% due 06/08/23 (Ê) | 374 | 374 | 6.375% due 03/01/25 | 610 | 667 | ||||||
Steak n Shake Operations, Inc. Term | |||||||||||
Loan | TMS International Corp. | ||||||||||
4.750% due 03/19/21 (Ê) | 1,089 | 1,086 | 7.625% due 10/15/21 (Þ) | 1,725 | 1,738 | ||||||
Sterigenics-Nordion Holdings LLC Term | TMS International Corp. Term Loan B | ||||||||||
Loan B | 4.557% due 10/16/20 (Ê) | 1,990 | 2,004 | ||||||||
4.149% due 03/23/22 | 1,491 | 1,487 | Toyota Auto Receivables Owner Trust | ||||||||
Sterling Midco Holdings, Inc. 2nd Lien | Series 2015-A Class A3 | ||||||||||
Term Loan | 1.120% due 02/15/19 | 823 | 822 | ||||||||
8.897% due 06/19/23 (Ê) | 4,200 | 4,095 | |||||||||
Suburban Propane Partners, LP/ | Toyota Motor Credit Corp. | ||||||||||
Suburban Energy Finance Corp. | Series MTN | ||||||||||
5.750% due 03/01/25 | 1,010 | 1,002 | 1.415% due 01/09/19 (Ê) | 265 | 266 | ||||||
Summit Materials LLC / Summit | Trader Corp. Term Loan B | ||||||||||
Materials Finance Corp. | 4.290% due 09/28/23 | 1,000 | 1,002 | ||||||||
6.125% due 07/15/23 | 1,680 | 1,760 | Trans Union LLC Term 1st Lien Loan B2 | ||||||||
Suncoke Energy Partners LP | 3.493% due 04/09/21 (Ê) | 499 | 503 | ||||||||
7.375% due 02/01/20 | 1,785 | 1,830 | Transdigm Group, Inc. 1st Lien Term | ||||||||
Surgery Center Holdings, Inc. | Loan F | ||||||||||
8.875% due 04/15/21 (Þ) | 2,030 | 2,157 | 3.993% due 06/09/23 (Ê) | 749 | 748 | ||||||
Talbots, Inc. (The) 1st Lien Term Loan | TransDigm, Inc. | ||||||||||
5.500% due 03/17/20 (Ê) | 1,642 | 1,466 | 6.500% due 05/15/25 (Þ) | 850 | 869 | ||||||
Talen Energy Supply LLC | 6.375% due 06/15/26 | 7,020 | 7,073 | ||||||||
4.600% due 12/15/21 | 350 | 271 | Transocean, Inc. | ||||||||
TCH-2 Holdings LLC 1st Lien Term | 6.800% due 03/15/38 | 1,040 | 832 | ||||||||
Loan | Tribune Co. Term Loan B | ||||||||||
5.500% due 05/12/21 (Ê) | 1,367 | 1,377 | 3.993% due 01/27/24 (Ê) | 397 | 399 | ||||||
Tempo Acquisition LLC | Tribune Media Co. 1st Lien Term Loan B | ||||||||||
6.750% due 06/01/25 (Þ) | 1,220 | 1,254 | 3.993% due 12/27/20 (Ê) | 32 | 32 | ||||||
Tempo Acquisition LLC Term Loan | Tronox Finance LLC | ||||||||||
4.060% due 03/15/24 | 500 | 500 | 6.375% due 08/15/20 | 340 | 346 | ||||||
Tempur Sealy International, Inc. | 7.500% due 03/15/22 (Þ) | 1,525 | 1,594 | ||||||||
5.500% due 06/15/26 | 1,875 | 1,866 | TruGreen, LP 1st Lien Term Loan | ||||||||
Tender Option Bond Trust Receipts/ | 6.500% due 04/13/23 (Ê) | 1,988 | 2,001 | ||||||||
Certificates General Obligation | UBS Group AG | ||||||||||
Unlimited | 7.125% due 12/29/49 (ƒ) | 600 | 637 | ||||||||
1.240% due 08/01/49 (ƒ)(Þ) | 1,300 | 1,300 | |||||||||
UFC Holdings LLC 1st Lien Term Loan | |||||||||||
Tenet Healthcare Corp. | 4.250% due 08/18/23 (Ê) | 1,990 | 2,001 | ||||||||
4.375% due 10/01/21 | 690 | 689 | |||||||||
7.500% due 01/01/22 (Þ) | 960 | 1,027 | Ukreximbank Via Biz Finance PLC | ||||||||
6.750% due 06/15/23 | 10,650 | 10,171 | 8.344% due 02/09/23 (Ê)(Þ) | 6,067 | 5,551 | ||||||
TerraForm AP Acquisition Holdings LLC | 9.750% due 01/22/25 (Þ) | 2,369 | 2,363 | ||||||||
Term Loan B | Ultra Resources, Inc. | ||||||||||
5.647% due 06/26/22 (Ê) | 998 | 1,008 | 6.875% due 04/15/22 (Þ) | 525 | 531 | ||||||
TerraForm Power Operating LLC | 7.125% due 04/15/25 (Þ) | 535 | 530 | ||||||||
6.375% due 02/01/23 (Þ) | 1,350 | 1,394 | United Airlines, Inc. Term Loan B | ||||||||
Tesoro Logistics, LP / Tesoro Logistics | 3.421% due 03/21/24 | 250 | 250 | ||||||||
Finance Corp. | United States Treasury Notes | ||||||||||
6.375% due 05/01/24 | 635 | 694 | 1.000% due 10/15/19 | 1,050 | 1,041 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 315
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||
Principal | Fair | Principal | Fair | |||||||||
Amount ($) | Value | Amount ($) | Value | |||||||||
or Shares | $ | or Shares | $ | |||||||||
Univision Communications, Inc. | William Morris Endeavor Entertainment | |||||||||||
5.125% due 05/15/23 (Þ) | 2,105 | 2,139 | LLC 1st Lien Term Loan | |||||||||
US Bancorp | 4.250% due 05/06/21 (Ê) | 1,459 | 1,466 | |||||||||
Series MTN | Williams Cos., Inc. (The) | |||||||||||
1.556% due 04/25/19 (Ê) | 1,000 | 1,004 | 3.700% due 01/15/23 | 800 | 788 | |||||||
4.550% due 06/24/24 | 1,170 | 1,198 | ||||||||||
US Bank | ||||||||||||
1.473% due 01/24/20 (Ê) | 1,900 | 1,904 | 5.750% due 06/24/44 | 715 | 740 | |||||||
USIC Holdings, Inc. 1st Lien Term Loan | WMG Acquisition Corp. | |||||||||||
5.170% due 11/21/23 | 499 | 502 | 4.125% due 11/01/24 (Þ) | 1,890 | 2,162 | |||||||
World Endurance Holdings 1st Lien | ||||||||||||
USIS Merger Sub, Inc. | Term Loan | |||||||||||
6.875% due 05/01/25 (Þ) | 4,124 | 4,196 | 5.401% due 06/26/21 (Ê) | 1,724 | 1,715 | |||||||
UTEX Industries, Inc. Covenant-Lite 1st | ||||||||||||
Lien Term Loan B | Xerium Technologies, Inc. | |||||||||||
5.000% due 05/22/21 (Ê) | 1,167 | 1,076 | 9.500% due 08/15/21 | 2,030 | 2,106 | |||||||
UTEX Industries, Inc. Covenant-Lite | Yum! Brands, Inc. | |||||||||||
2nd Lien Term Loan B | 3.875% due 11/01/23 | 1,690 | 1,669 | |||||||||
8.250% due 05/22/22 (Ê) | 890 | 765 | 6.875% due 11/15/37 | 300 | 312 | |||||||
Valeant Pharmaceuticals International, | Zais CLO 5, Ltd. | |||||||||||
Inc. Term Loan B | Series 2016-2A Class C | |||||||||||
5.500% due 04/02/22 (Ê) | 801 | 806 | 5.216% due 10/15/28 (Ê)(Þ) | 1,000 | 1,009 | |||||||
Varsity Brands, Inc. 1st Lien Term Loan | Zayo Group LLC / Zayo Capital Inc. | |||||||||||
5.000% due 12/11/21 | 1,222 | 1,228 | 5.750% due 01/15/27 (Þ) | 321 | 341 | |||||||
Verdesian Life Sciences LLC Term Loan | ZF NA Capital, Inc. | |||||||||||
6.172% due 07/01/20 (Ê) | 1,333 | 1,151 | 4.500% due 04/29/22 (Þ) | 320 | 336 | |||||||
Verizon Communications, Inc. | 699,070 | |||||||||||
1.918% due 06/17/19 (Ê) | 2,910 | 2,933 | Uruguay - 0.0% | |||||||||
Vertiv Group Corp. | ||||||||||||
9.250% due 10/15/24 (Þ) | 1,285 | 1,380 | Uruguay Government International Bond | |||||||||
4.375% due 12/15/28 | UYU | 8,450 | 285 | |||||||||
Vince LLC 1st Lien Term Loan B | Venezuela, Bolivarian Republic of - 1.0% | |||||||||||
6.038% due 11/27/19 (Ê) | 257 | 237 | ||||||||||
Virgin Media Bristol LLC 1st Lien Term | Petroleos de Venezuela SA | |||||||||||
Loan I | 5.375% due 04/12/27 | 15,000 | 5,722 | |||||||||
3.744% due 01/31/25 (Ê) | 500 | 502 | Series REGS | |||||||||
Vizient, Inc. | 9.000% due 11/17/21 | 2,900 | 1,526 | |||||||||
10.375% due 03/01/24 (Þ) | 3,690 | 4,225 | 6.000% due 05/16/24 | 13,000 | 5,139 | |||||||
Vnesheconombank Via VEB Finance | 5.500% due 04/12/37 | 9,000 | 3,442 | |||||||||
PLC | Venezuela Government International | |||||||||||
Series REGS | Bond | |||||||||||
6.025% due 07/05/22 | 2,500 | 2,681 | Series REGS | |||||||||
7.000% due 12/01/18 | 3,000 | 2,111 | ||||||||||
Vouvray US Finance LLC Term Loan B | 7.750% due 10/13/19 | 2,000 | 1,203 | |||||||||
4.176% due 01/27/24 | 1,000 | 999 | ||||||||||
VWR Funding, Inc. | 19,143 | |||||||||||
4.625% due 04/15/22 (Þ) | 2,475 | 2,812 | Vietnam - 0.1% | |||||||||
Series REGS | Vietnam Government International Bond | |||||||||||
4.625% due 04/15/22 | 405 | 460 | 6.750% due 01/29/20 (Þ) | 1,500 | 1,639 | |||||||
Walter Investment Management Corp. | ||||||||||||
7.875% due 12/15/21 | 1,155 | 699 | Total Long-Term Fixed Income | |||||||||
Washington Inventory Service 2nd Lien | Investments | |||||||||||
Term Loan | (cost $1,569,956) | 1,586,293 | ||||||||||
Zero coupon due 06/20/19 (Å)(Ø) | 2,600 | 468 | ||||||||||
Wastequip LLC Term Loan | ||||||||||||
5.500% due 08/09/19 (Ê) | 237 | 237 | Common Stocks - 0.1% | |||||||||
United States - 0.1% | ||||||||||||
Watco Cos. LLC / Watco Finance Corp. | Education Management Corp.(Æ)(Þ) | 4,460,190 | — | |||||||||
6.375% due 04/01/23 (Þ) | 1,610 | 1,666 | Linn Energy, Inc.(Æ) | 34,600 | 970 | |||||||
Wells Fargo & Co. | Millennium Health LLC(Æ) | 14,862 | 17 | |||||||||
2.440% due 03/04/21 (Ê) | 1,500 | 1,540 | ||||||||||
WESCO Distribution, Inc. | Total Common Stocks | |||||||||||
5.375% due 06/15/24 | 238 | 245 | ||||||||||
(cost $1,076) | 987 |
See accompanying notes which are an integral part of the financial statements.
316 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
4,586 | ||||||||
Preferred Stocks - 0.3% | Belgium - 0.1% | |||||||
Netherlands - 0.1% | Anheuser-Busch InBev Worldwide, Inc. | |||||||
Aegon NV(Æ) | 10,000 | 258 | 1.671% due 01/02/18 (Þ)(~) | 1,000 | 991 | |||
ING Groep NV(Æ) | 87,740 | 2,261 | Brazil - 0.0% | |||||
2,519 | ||||||||
Nota do Tesouro Nacional | ||||||||
Spain - 0.0% | Series NTNF | |||||||
Santander Finance Preferred SAU(Æ) | 15,850 | 407 | 10.000% due 01/01/18 | BRL | 1,500 | 489 | ||
Canada - 0.2% | ||||||||
United Kingdom - 0.1% | Bank of Nova Scotia | |||||||
HSBC Holdings PLC(Æ) | 36,780 | 957 | 1.881% due 03/28/18 (Ê) | 280 | 281 | |||
National Bank of Canada | ||||||||
United States - 0.1% | ||||||||
Citigroup Capital XIII(Æ) | 31,925 | 838 | 1.454% due 05/24/17 (Ê) | 800 | 800 | |||
Deutsche Bank Contingent Capital Trust | Province of Ontario Canada | |||||||
II(Æ) | 19,792 | 498 | Series MTN | |||||
Deutsche Bank Contingent Capital Trust | 1.303% due 11/23/17 (Ê) | 750 | 750 | |||||
III(Æ) | 15,000 | 392 | Toronto-Dominion Bank (The) | |||||
Education Management Corp.(Æ) | 2,128 | — | 1.275% due 05/02/17 (Ê) | 2,000 | 2,000 | |||
1,728 | ||||||||
3,831 | ||||||||
Total Preferred Stocks | Cayman Islands - 0.1% | |||||||
Transocean, Inc. | ||||||||
(cost $5,775) | 5,611 | |||||||
6.000% due 03/15/18 | 1,560 | 1,593 | ||||||
France - 0.0% | ||||||||
Options Purchased - 0.0% | Sanofi | |||||||
Cross Currency Options | ||||||||
(BRL/USD) | 1.250% due 04/10/18 | 500 | 500 | |||||
May 2017 3.35 Put (1) | USD | 4,130 | (ÿ) | 214 | Germany - 0.0% | |||
Cross Currency Options | KfW | |||||||
(MXN/USD) | ||||||||
Aug 2017 20.21 Call (1) | USD | 900 | (ÿ) | 12 | 1.312% due 12/29/17 (Ê) | 710 | 710 | |
Aug 2017 20.21 Put (1) | USD | 900 | (ÿ) | 61 | Ghana - 0.0% | |||
Cross Currency Options | ||||||||
(MYR/USD) | Ghana Government International Bond | |||||||
Aug 2017 4.35 Put (3) | USD | 7,800 | (ÿ) | 137 | Series 3YR | |||
Total Options Purchased | 23.230% due 02/19/18 | GHS | 500 | 121 | ||||
(cost $257) | 424 | 22.490% due 04/23/18 | GHS | 160 | 38 | |||
Series 3YR | ||||||||
Warrants & Rights - 0.0% | ||||||||
United States - 0.0% | 24.440% due 05/29/17 | GHS | 80 | 19 | ||||
Education Management Corp.(Æ) | 178 | |||||||
2021 Rights | 1,564,221 | — | Japan - 0.1% | |||||
Foresight Energy, LP(Å)(Æ) | Sumitomo Mitsui Banking Corp. | |||||||
2017 Warrants | 13,090 | 653 | 1.399% due 08/10/17 (Ê)(~) | 2,200 | 2,201 | |||
Malaysia - 0.1% | ||||||||
Total Warrants & Rights | Malaysia Government International Bond | |||||||
(cost $—) | 653 | Series 0213 | ||||||
3.260% due 03/01/18 | MYR | 5,040 | 1,162 | |||||
Short-Term Investments - 9.6% | Netherlands - 0.1% | |||||||
Argentina - 0.3% | Cooperatieve Rabobank UA | |||||||
Argentina Bonar Bonds | 1.328% due 06/22/17 (ç)(Ê)(~) | 2,500 | 2,500 | |||||
22.401% due 10/09/17 (Ê) | ARS | 8,770 | 581 | Turkey - 0.1% | ||||
Argentine Bonos del Tesoro | Turkey Government International Bond | |||||||
22.750% due 03/05/18 | ARS | 32,290 | 2,213 | Series 5Y | ||||
Republic of Aregentina Governemnt | 6.300% due 02/14/18 | TRY | 9,890 | 2,683 | ||||
International Bond | United Kingdom - 0.0% | |||||||
22.254% due 03/01/18 (Ê) | ARS | 26,060 | 1,792 | Privatbank CJSC Via UK SPV Credit | ||||
Finance PLC |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 317
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
736.631% due 01/23/18 (~) | 1,240 | 261 | 1.237% due 05/16/17 (Ê) | 1,445 | 1,445 | |||||
United States - 8.4% | 1.470% due 07/03/17 | 500 | 501 | |||||||
American Express Credit Corp. | ||||||||||
1.350% due 12/05/17 (Ê) | 250 | 250 | ||||||||
1.456% due 09/22/17 (Ê) | 2,000 | 2,002 | U.S. Cash Management Fund | 101,850,705 | (8) | 101,871 | ||||
Avaya, Inc. 1st Lien Term Loan B4 | United States Treasury Bills | |||||||||
8.500% due 01/23/18 (Ê) | 553 | 567 | 0.699% due 06/22/17 (§)(~)(ç) | 7,900 | 7,892 | |||||
Bank of America Corp. | Vodafone Group PLC | |||||||||
2.000% due 01/11/18 | 1,000 | 1,002 | 1.608% due 09/05/17 (Þ) | 3,000 | 2,984 | |||||
Series MTN | Wells Fargo & Co. | |||||||||
2.226% due 03/22/18 (Ê) | 659 | 664 | 1.783% due 04/23/18 (Ê) | 1,800 | 1,808 | |||||
Citigroup, Inc. | 151,707 | |||||||||
1.860% due 04/27/18 (Ê) | 2,479 | 2,489 | Uruguay - 0.0% | |||||||
Danske Corp. | Uruguay Treasury Bills | |||||||||
Series A | 12.153% due 09/29/17 (~) | UYU | 1,360 | 46 | ||||||
1.745% due 02/16/18 (Þ)(~) | 1,485 | 1,465 | Series 0001 | |||||||
eBay, Inc. | 12.759% due 02/08/18 (~) | UYU | 11,930 | 387 | ||||||
1.372% due 07/28/17 (Ê) | 2,625 | 2,626 | 12.834% due 03/08/18 (~) | UYU | 9,727 | 312 | ||||
Exxon Mobil Corp. | Series 7 | |||||||||
1.105% due 03/01/18 (Ê) | 2,000 | 2,001 | 13.250% due 04/08/18 | UYU | 5,970 | 214 | ||||
General Mills, Inc. | 959 | |||||||||
0.719% due 05/03/17 (ç)(Þ)(~) | 500 | 500 | Venezuela, Bolivarian Republic of - 0.1% | |||||||
Honda Auto Receivables Owner Trust | Petroleos de Venezuela SA | |||||||||
Series 2014-2 Class A3 | Series REGS | |||||||||
0.770% due 03/19/18 | 134 | 134 | 8.500% due 11/02/17 | 1,333 | 1,210 | |||||
HSBC USA, Inc. | Total Short-Term Investments | |||||||||
1.313% due 12/15/17 (Ê)(Þ) | 2,300 | 2,304 | (cost $175,866) | 175,561 | ||||||
Inter-American Development Bank | ||||||||||
Series GMTN | Total Investments 97.4% | |||||||||
1.004% due 10/15/17 (Ê) | 1,500 | 1,500 | (identified cost $1,752,930) | 1,769,529 | ||||||
International Business Machines Corp. | ||||||||||
1.502% due 08/18/17 (Ê) | 1,250 | 1,252 | Other Assets and Liabilities, Net | |||||||
1.125% due 02/06/18 | 500 | 499 | - 2.6% | 46,476 | ||||||
Liberty Street Funding LLC | Net Assets - 100.0% | 1,816,005 | ||||||||
1.143% due 06/26/17 (Þ) | 635 | 634 | ||||||||
Optima Specialty Steel, Inc. Delayed | ||||||||||
Draw Term Loan | ||||||||||
1.100% due 10/31/17 (Å) | 4,280 | 4,280 | ||||||||
Optima Specialty Steel, Inc. | ||||||||||
Replacement DIP Term Loan | ||||||||||
1.170% due 10/31/17 (Å) | 3,420 | 3,420 | ||||||||
Pfizer, Inc. | ||||||||||
1.189% due 05/15/17 (Ê) | 1,835 | 1,835 | ||||||||
Regency Markets No. 1, LLC | ||||||||||
1.000% due 05/15/17 (Þ) | 1,500 | 1,499 | ||||||||
Sequa Corp. | ||||||||||
7.000% due 12/15/17 (Þ) | 2,095 | 2,090 | ||||||||
Societe Generale SA | ||||||||||
1.132% due 08/10/17 | 2,200 | 2,193 | ||||||||
Toyota Motor Credit Corp. | ||||||||||
Series MTN |
See accompanying notes which are an integral part of the financial statements.
318 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
2.3% | ||||||||||||
Banco Popular Espanol SA | 11/17/16 | EUR | 1,050,000 | 106.39 | 1,117 | 1,112 | ||||||
BioScrip, Inc. Delayed Draw Term Loan | 03/08/17 | 1,410,865 | 98.53 | 1,390 | 1,386 | |||||||
BioScrip, Inc. Term Loan | 03/08/17 | 1,292,719 | 97.00 | 1,254 | 1,259 | |||||||
BioScrip, Inc. Term Loan B | 03/31/17 | 2,351,732 | 98.65 | 2,320 | 2,311 | |||||||
CaixaSabadell Preferentes SAU | 12/15/16 | EUR | 800,000 | 77.97 | 624 | 754 | ||||||
Century Aluminum Co. | 09/21/15 | 10,395,000 | 100.51 | 10,448 | 10,512 | |||||||
CPM Holdings, Inc. 2nd Lien Term Loan | 04/02/15 | 3,070,000 | 97.50 | 2,993 | 3,062 | |||||||
Foresight Energy, LP | 08/26/16 | 13,090 | — | — | 653 | |||||||
FPC Holdings, Inc. 2nd Lien Term Loan | 05/23/13 | 1,079,769 | 98.00 | 1,058 | 944 | |||||||
GNB - Companhia de Seguros de Vida SA | 01/10/17 | EUR | 130,000 | 53.45 | 69 | 57 | ||||||
GNB - Companhia de Seguros de Vida SA | 01/17/17 | EUR | 200,000 | 71.46 | 143 | 131 | ||||||
La Mondiale SAM | 05/27/16 | EUR | 920,000 | 96.40 | 887 | 882 | ||||||
La Mondiale SAM | 11/23/16 | EUR | 150,000 | 90.89 | 136 | 140 | ||||||
Macif SA | 11/24/16 | EUR | 685,000 | 88.48 | 606 | 631 | ||||||
Optima Specialty Steel, Inc. Delayed Draw Term Loan | 03/06/17 | 4,280,000 | 100.00 | 4,280 | 4,280 | |||||||
Optima Specialty Steel, Inc. Replacement DIP Term Loan | 03/01/17 | 3,420,000 | 100.00 | 3,420 | 3,420 | |||||||
Optimas OE Solutions Holding LLC / Optimas OE Solutions, Inc. | 04/12/17 | 3,980,000 | 94.36 | 3,755 | 3,761 | |||||||
Oschadbank Via SSB #1 PLC | 12/10/15 | 2,800,000 | 73.62 | 2,061 | 2,353 | |||||||
Patterson Co. 2nd Lien Term Loan | 08/14/15 | 3,490,000 | 99.00 | 3,455 | 3,403 | |||||||
Santander Finance Capital SA | 11/17/16 | 375,000 | 40.25 | 151 | 211 | |||||||
Santander Perpetual SAU | 05/09/16 | 170,000 | 98.02 | 167 | 171 | |||||||
Sparekassen Sjaelland-Fyn AS | 04/04/16 | DKK | 2,000,000 | 15.28 | 306 | 314 | ||||||
Washington Inventory Service 2nd Lien Term Loan | 01/10/13 | 2,600,000 | 97.50 | 2,535 | 468 | |||||||
42,215 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||
Contracts | Amount | Date | $ | ||||||
Long Positions | |||||||||
Australia 10 Year Government Bond Futures | 1,437 | AUD | 186,406 | 06/17 | 3,910 | ||||
Euro-Bobl Futures | 52 | EUR | 6,857 | 06/17 | (10 | ) | |||
Euro-Bund Futures | 17 | EUR | 2,750 | 06/17 | 5 | ||||
Euro-Schatz Futures | 80 | EUR | 8,979 | 06/17 | (9 | ) | |||
Long Gilt Futures | 15 | GBP | 1,924 | 06/17 | 34 | ||||
United States 2 Year Treasury Note Futures | 327 | USD | 70,831 | 06/17 | 48 | ||||
United States 5 Year Treasury Note Futures | 805 | USD | 95,317 | 06/17 | 588 | ||||
United States 10 Year Treasury Note Futures | 2,120 | USD | 266,524 | 06/17 | 2,409 | ||||
United States Long Bond Futures | 191 | USD | 29,217 | 06/17 | 453 | ||||
United States Ultra Treasury Bond Futures | 22 | USD | 3,585 | 06/17 | 47 | ||||
Short Positions | |||||||||
Euro-Bund Futures | 725 | EUR | 117,290 | 06/17 | (631 | ) | |||
Long Gilt Futures | 754 | GBP | 96,716 | 06/17 | (2,112 | ) | |||
United States 10 Year Treasury Note Futures | 31 | USD | 3,897 | 06/17 | (28 | ) | |||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 4,704 | ||||||||
Options Written | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||
Cross Currency Options (BRL/USD) | Put | 1 | 3.18 | USD | 4,130 | 05/18/17 | (47 | ) | |
Total Liability for Options Written (premiums received $31) | (47 | ) |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 319
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||
Number of | Premiums | |||||
Contracts | Received | |||||
Outstanding October 31, 2016 | — | $ | — | |||
Opened | 3 | 68 | ||||
Closed | (2 | ) | (37 | ) | ||
Expired | — | — | ||||
Outstanding April 30, 2017 | 1 | $ | 31 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 3 | BRL | 11 | 05/23/17 | — | |
Bank of America | USD | 36 | BRL | 113 | 05/23/17 | (1 | ) |
Bank of America | USD | 1,824 | BRL | 5,678 | 05/23/17 | (44 | ) |
Bank of America | USD | 52 | COP | 155,572 | 05/23/17 | 1 | |
Bank of America | USD | 1,797 | COP | 5,245,517 | 05/23/17 | (20 | ) |
Bank of America | USD | 29 | CZK | 728 | 05/23/17 | 1 | |
Bank of America | USD | 129 | CZK | 3,209 | 05/23/17 | 2 | |
Bank of America | USD | 6,141 | CZK | 154,775 | 05/23/17 | 146 | |
Bank of America | USD | 247 | HUF | 70,989 | 05/05/17 | — | |
Bank of America | USD | 495 | HUF | 141,977 | 05/05/17 | (1 | ) |
Bank of America | USD | 6 | HUF | 1,894 | 05/23/17 | — | |
Bank of America | USD | 217 | HUF | 63,363 | 05/23/17 | 4 | |
Bank of America | USD | 6,117 | HUF | 1,766,562 | 05/23/17 | 31 | |
Bank of America | USD | 46 | IDR | 615,769 | 05/23/17 | — | |
Bank of America | USD | 30 | KRW | 34,296 | 05/23/17 | — | |
Bank of America | USD | 61 | PLN | 243 | 05/23/17 | 1 | |
Bank of America | USD | 6,075 | PLN | 24,716 | 05/23/17 | 295 | |
Bank of America | USD | 8 | RUB | 495 | 05/23/17 | — | |
Bank of America | USD | 109 | RUB | 6,155 | 05/23/17 | (1 | ) |
Bank of America | USD | 1,809 | RUB | 105,864 | 05/23/17 | 42 | |
Bank of America | USD | 730 | TRY | 2,602 | 05/02/17 | 2 | |
Bank of America | USD | 1,010 | TRY | 3,697 | 05/18/17 | 26 | |
Bank of America | USD | 1,130 | TRY | 4,079 | 05/18/17 | 13 | |
Bank of America | USD | 8 | TRY | 30 | 05/23/17 | — | |
Bank of America | USD | 18 | TRY | 65 | 05/23/17 | 1 | |
Bank of America | USD | 26 | TRY | 100 | 05/23/17 | 2 | |
Bank of America | USD | 59 | TRY | 217 | 05/23/17 | 2 | |
Bank of America | USD | 1,782 | TRY | 6,712 | 05/23/17 | 96 | |
Bank of America | USD | 5,941 | TRY | 22,372 | 05/23/17 | 319 | |
Bank of America | USD | 92 | TRY | 351 | 01/31/18 | — | |
Bank of America | USD | 414 | TRY | 1,592 | 01/31/18 | 2 | |
Bank of America | USD | 817 | TRY | 3,143 | 01/31/18 | 3 | |
Bank of America | USD | 23 | TWD | 708 | 05/23/17 | — | |
Bank of America | USD | 870 | ZAR | 11,594 | 05/18/17 | (5 | ) |
Bank of America | BRL | 36 | USD | 11 | 05/23/17 | — | |
Bank of America | BRL | 375 | USD | 120 | 05/23/17 | 3 | |
Bank of America | BRL | 18,926 | USD | 6,080 | 05/23/17 | 148 | |
Bank of America | CLP | 6,776 | USD | 10 | 05/23/17 | — | |
Bank of America | CLP | 104,127 | USD | 155 | 05/23/17 | (1 | ) |
Bank of America | CLP | 3,907,765 | USD | 6,087 | 05/23/17 | 238 | |
Bank of America | COP | 70,547 | USD | 25 | 05/23/17 | 1 | |
Bank of America | CZK | 963 | USD | 39 | 05/23/17 | — |
See accompanying notes which are an integral part of the financial statements.
320 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | CZK | 2,426 | USD | 96 | 05/23/17 | (3 | ) |
Bank of America | CZK | 46,432 | USD | 1,842 | 05/23/17 | (44 | ) |
Bank of America | HUF | 6,313 | USD | 22 | 05/23/17 | — | |
Bank of America | HUF | 19,009 | USD | 65 | 05/23/17 | (1 | ) |
Bank of America | HUF | 529,969 | USD | 1,835 | 05/23/17 | (9 | ) |
Bank of America | HUF | 70,989 | USD | 249 | 11/06/17 | — | |
Bank of America | HUF | 141,977 | USD | 498 | 11/06/17 | 1 | |
Bank of America | IDR | 1,724,025 | USD | 129 | 05/23/17 | — | |
Bank of America | IDR | 80,960,076 | USD | 6,007 | 05/23/17 | (56 | ) |
Bank of America | KRW | 33,134 | USD | 29 | 05/23/17 | — | |
Bank of America | KRW | 2,099,300 | USD | 1,838 | 05/23/17 | (7 | ) |
Bank of America | PLN | 235 | USD | 58 | 05/23/17 | (3 | ) |
Bank of America | RON | 1,424 | USD | 338 | 07/19/17 | (5 | ) |
Bank of America | RUB | 1,650 | USD | 28 | 05/23/17 | (1 | ) |
Bank of America | RUB | 1,847 | USD | 33 | 05/23/17 | — | |
Bank of America | RUB | 352,879 | USD | 6,032 | 05/23/17 | (141 | ) |
Bank of America | TRY | 351 | USD | 99 | 05/02/17 | — | |
Bank of America | TRY | 1,592 | USD | 446 | 05/02/17 | (2 | ) |
Bank of America | TRY | 3,143 | USD | 881 | 05/02/17 | (4 | ) |
Bank of America | TWD | 498 | USD | 16 | 05/23/17 | — | |
Bank of America | TWD | 56,524 | USD | 1,845 | 05/23/17 | (27 | ) |
Bank of Montreal | USD | 3,068 | AUD | 4,081 | 05/23/17 | (13 | ) |
Bank of Montreal | USD | 14,318 | AUD | 19,045 | 05/23/17 | (62 | ) |
Bank of Montreal | USD | 10,432 | EUR | 9,710 | 05/23/17 | 156 | |
Bank of Montreal | DKK | 21,670 | USD | 3,130 | 05/23/17 | (47 | ) |
Bank of Montreal | EUR | 13,594 | USD | 14,604 | 05/23/17 | (219 | ) |
Bank of Montreal | HKD | 14,141 | USD | 1,824 | 05/23/17 | 5 | |
Bank of New York | USD | 10,597 | GBP | 8,242 | 05/23/17 | 84 | |
Bank of New York | USD | 10,359 | JPY | 1,127,043 | 05/23/17 | (241 | ) |
Bank of New York | JPY | 1,577,860 | USD | 14,502 | 05/23/17 | 338 | |
Bank of New York | SEK | 27,957 | USD | 3,121 | 05/23/17 | (39 | ) |
Barclays | USD | 382 | BRL | 1,211 | 05/10/17 | (1 | ) |
Barclays | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
Barclays | USD | 383 | BRL | 1,211 | 05/10/17 | (3 | ) |
Barclays | USD | 30 | BRL | 98 | 06/02/17 | — | |
Barclays | USD | 74 | BRL | 239 | 06/09/17 | 1 | |
Barclays | USD | 857 | CLP | 558,806 | 05/18/17 | (21 | ) |
Barclays | USD | 196 | COP | 567,595 | 05/18/17 | (4 | ) |
Barclays | USD | 101 | COP | 297,243 | 06/13/17 | (1 | ) |
Barclays | USD | 101 | COP | 304,111 | 06/13/17 | 2 | |
Barclays | USD | 101 | COP | 295,829 | 06/13/17 | (1 | ) |
Barclays | USD | 101 | COP | 298,960 | 06/13/17 | — | |
Barclays | USD | 8 | CZK | 209 | 05/03/17 | — | |
Barclays | USD | 3,690 | CZK | 89,970 | 11/03/17 | 2 | |
Barclays | USD | 247 | HUF | 70,989 | 05/05/17 | — | |
Barclays | USD | 495 | HUF | 141,977 | 05/05/17 | (1 | ) |
Barclays | USD | 2,335 | HUF | 686,416 | 05/18/17 | 54 | |
Barclays | USD | 431 | IDR | 6,096,313 | 06/05/17 | 25 | |
Barclays | USD | 232 | IDR | 3,386,278 | 11/27/17 | 16 | |
Barclays | USD | 233 | IDR | 3,391,186 | 11/27/17 | 15 | |
Barclays | USD | 233 | IDR | 3,391,186 | 11/27/17 | 15 | |
Barclays | USD | 677 | IDR | 10,018,112 | 11/27/17 | 56 | |
Barclays | USD | 343 | IDR | 5,040,630 | 12/04/17 | 26 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 321
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Barclays | USD | 344 | IDR | 5,039,603 | 12/04/17 | 25 | |
Barclays | USD | 334 | IDR | 4,752,435 | 12/13/17 | 13 | |
Barclays | USD | 392 | IDR | 5,570,441 | 12/13/17 | 15 | |
Barclays | USD | 527 | IDR | 7,461,260 | 12/13/17 | 18 | |
Barclays | USD | 388 | IDR | 5,540,707 | 12/14/17 | 16 | |
Barclays | USD | 312 | IDR | 4,485,413 | 12/27/17 | 16 | |
Barclays | USD | 385 | IDR | 5,540,707 | 12/27/17 | 19 | |
Barclays | USD | 450 | IDR | 6,482,761 | 12/27/17 | 22 | |
Barclays | USD | 1,235 | IDR | 17,784,136 | 12/27/17 | 62 | |
Barclays | USD | 59 | IDR | 841,489 | 01/05/18 | 2 | |
Barclays | USD | 99 | IDR | 1,411,344 | 01/05/18 | 3 | |
Barclays | USD | 113 | IDR | 1,605,543 | 01/05/18 | 4 | |
Barclays | USD | 266 | IDR | 3,642,095 | 01/05/18 | — | |
Barclays | USD | 286 | IDR | 4,039,329 | 01/05/18 | 9 | |
Barclays | USD | 294 | IDR | 4,170,853 | 01/08/18 | 10 | |
Barclays | USD | 2,310 | INR | 158,061 | 08/16/17 | 120 | |
Barclays | USD | 767 | MXN | 14,465 | 05/18/17 | — | |
Barclays | USD | 1,642 | MYR | 7,316 | 06/20/17 | 44 | |
Barclays | USD | 360 | PEN | 1,192 | 07/19/17 | 5 | |
Barclays | USD | 1,400 | PEN | 4,793 | 07/19/17 | 66 | |
Barclays | USD | 1,487 | PLN | 5,950 | 05/18/17 | 47 | |
Barclays | USD | 445 | RUB | 25,645 | 07/10/17 | (2 | ) |
Barclays | USD | 2,420 | SGD | 3,373 | 05/15/17 | (6 | ) |
Barclays | USD | 2,521 | THB | 87,187 | 07/20/17 | (1 | ) |
Barclays | USD | 550 | TWD | 16,952 | 07/06/17 | 13 | |
Barclays | USD | 356 | ZAR | 4,680 | 07/05/17 | (9 | ) |
Barclays | USD | 215 | ZAR | 2,908 | 07/10/17 | — | |
Barclays | BRL | 3,783 | USD | 1,080 | 02/09/18 | (49 | ) |
Barclays | CAD | 146 | USD | 111 | 07/05/17 | 4 | |
Barclays | CAD | 201 | USD | 151 | 07/05/17 | 3 | |
Barclays | CAD | 293 | USD | 214 | 07/05/17 | (1 | ) |
Barclays | CAD | 387 | USD | 290 | 07/05/17 | 7 | |
Barclays | CAD | 402 | USD | 303 | 07/05/17 | 8 | |
Barclays | CAD | 802 | USD | 604 | 07/05/17 | 16 | |
Barclays | CAD | 886 | USD | 672 | 07/05/17 | 22 | |
Barclays | CLP | 1,458,568 | USD | 2,232 | 05/18/17 | 48 | |
Barclays | HUF | 154,667 | USD | 544 | 05/05/17 | 6 | |
Barclays | HUF | 154,667 | USD | 538 | 05/05/17 | — | |
Barclays | HUF | 68,042 | USD | 238 | 11/06/17 | — | |
Barclays | HUF | 70,989 | USD | 249 | 11/06/17 | — | |
Barclays | HUF | 141,977 | USD | 498 | 11/06/17 | 1 | |
Barclays | IDR | 17,045,569 | USD | 1,280 | 05/18/17 | 3 | |
Barclays | IDR | 6,096,313 | USD | 442 | 06/05/17 | (14 | ) |
Barclays | IDR | 6,482,761 | USD | 452 | 11/27/17 | (22 | ) |
Barclays | IDR | 13,704,000 | USD | 960 | 11/27/17 | (43 | ) |
Barclays | IDR | 17,784,136 | USD | 1,237 | 12/13/17 | (62 | ) |
Barclays | IDR | 5,540,707 | USD | 385 | 12/14/17 | (19 | ) |
Barclays | KRW | 133,540 | USD | 112 | 07/06/17 | (6 | ) |
Barclays | KRW | 246,787 | USD | 205 | 07/06/17 | (12 | ) |
Barclays | KRW | 463,310 | USD | 387 | 07/06/17 | (21 | ) |
Barclays | KRW | 476,024 | USD | 395 | 07/06/17 | (23 | ) |
Barclays | PHP | 16,678 | USD | 337 | 06/20/17 | 5 | |
Barclays | RON | 2,010 | USD | 480 | 07/19/17 | (3 | ) |
See accompanying notes which are an integral part of the financial statements.
322 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Barclays | RUB | 93,195 | USD | 1,621 | 05/18/17 | (11 | ) |
Barclays | SGD | 1,291 | USD | 907 | 05/15/17 | (17 | ) |
Barclays | TRY | 1,063 | USD | 282 | 05/18/17 | (16 | ) |
Barclays | TWD | 4,776 | USD | 152 | 07/06/17 | (7 | ) |
Barclays | TWD | 5,225 | USD | 163 | 07/06/17 | (10 | ) |
Barclays | TWD | 5,301 | USD | 166 | 07/06/17 | (10 | ) |
Barclays | TWD | 7,573 | USD | 251 | 07/06/17 | — | |
Barclays | TWD | 10,808 | USD | 340 | 07/06/17 | (19 | ) |
BBVA | USD | 392 | COP | 1,153,983 | 05/03/17 | — | |
Citigroup | USD | 406 | ARS | 7,005 | 07/11/17 | 34 | |
Citigroup | USD | 610 | ARS | 10,169 | 07/11/17 | 29 | |
Citigroup | USD | 1,018 | ARS | 16,244 | 07/19/17 | (2 | ) |
Citigroup | USD | 902 | ARS | 15,000 | 09/05/17 | 14 | |
Citigroup | USD | 974 | ARS | 16,168 | 09/05/17 | 14 | |
Citigroup | USD | 2,404 | BRL | 7,539 | 05/03/17 | (29 | ) |
Citigroup | USD | 382 | BRL | 1,211 | 05/10/17 | (2 | ) |
Citigroup | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
Citigroup | USD | 440 | BRL | 1,415 | 06/02/17 | 3 | |
Citigroup | USD | 247 | HUF | 70,989 | 05/05/17 | — | |
Citigroup | USD | 495 | HUF | 141,977 | 05/05/17 | (1 | ) |
Citigroup | USD | 590 | HUF | 172,510 | 05/05/17 | 10 | |
Citigroup | USD | 150 | IDR | 2,125,846 | 12/15/17 | 5 | |
Citigroup | USD | 643 | IDR | 9,150,935 | 12/15/17 | 25 | |
Citigroup | USD | 585 | IDR | 8,413,874 | 12/20/17 | 29 | |
Citigroup | USD | 154 | IDR | 2,208,951 | 12/21/17 | 7 | |
Citigroup | USD | 228 | IDR | 3,275,194 | 12/21/17 | 11 | |
Citigroup | USD | 150 | IDR | 2,156,988 | 12/27/17 | 8 | |
Citigroup | USD | 150 | IDR | 2,164,285 | 12/27/17 | 7 | |
Citigroup | USD | 359 | IDR | 5,174,956 | 12/27/17 | 19 | |
Citigroup | USD | 381 | IDR | 5,484,144 | 12/27/17 | 19 | |
Citigroup | USD | 584 | IDR | 8,413,874 | 12/27/17 | 29 | |
Citigroup | USD | 783 | IDR | 11,276,781 | 12/27/17 | 40 | |
Citigroup | USD | 145 | IDR | 2,062,126 | 01/05/18 | 5 | |
Citigroup | USD | 274 | IDR | 3,763,731 | 01/05/18 | — | |
Citigroup | USD | 376 | IDR | 5,329,803 | 01/05/18 | 12 | |
Citigroup | USD | 461 | IDR | 6,543,666 | 01/05/18 | 15 | |
Citigroup | USD | 825 | IDR | 11,701,266 | 01/05/18 | 28 | |
Citigroup | USD | 938 | IDR | 13,357,120 | 01/05/18 | 35 | |
Citigroup | USD | 439 | IDR | 6,248,094 | 01/08/18 | 16 | |
Citigroup | USD | 876 | IDR | 12,479,799 | 01/08/18 | 33 | |
Citigroup | USD | 1,487 | PLN | 5,950 | 05/18/17 | 47 | |
Citigroup | USD | 1,808 | RON | 7,630 | 07/19/17 | 27 | |
Citigroup | USD | 445 | RUB | 25,645 | 07/10/17 | (2 | ) |
Citigroup | USD | 1,846 | ZAR | 24,304 | 05/23/17 | (34 | ) |
Citigroup | USD | 356 | ZAR | 4,680 | 07/05/17 | (9 | ) |
Citigroup | ARS | 5,464 | USD | 340 | 07/19/17 | (2 | ) |
Citigroup | BRL | 7,539 | USD | 2,357 | 05/03/17 | (18 | ) |
Citigroup | BRL | 7,539 | USD | 2,386 | 06/02/17 | 28 | |
Citigroup | CAD | 654 | USD | 492 | 07/05/17 | 12 | |
Citigroup | HUF | 154,667 | USD | 543 | 05/05/17 | 5 | |
Citigroup | HUF | 154,667 | USD | 538 | 05/05/17 | — | |
Citigroup | HUF | 70,989 | USD | 249 | 11/06/17 | — | |
Citigroup | HUF | 94,723 | USD | 332 | 11/06/17 | — |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 323
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Citigroup | HUF | 141,977 | USD | 498 | 11/06/17 | 1 | |
Citigroup | IDR | 17,045,569 | USD | 1,281 | 05/18/17 | 4 | |
Citigroup | IDR | 11,276,781 | USD | 784 | 12/15/17 | (40 | ) |
Citigroup | IDR | 8,413,874 | USD | 585 | 12/20/17 | (29 | ) |
Citigroup | IDR | 5,484,144 | USD | 381 | 12/21/17 | (19 | ) |
Citigroup | IDR | 9,193,800 | USD | 660 | 01/05/18 | (10 | ) |
Citigroup | KRW | 215,436 | USD | 183 | 07/06/17 | (6 | ) |
Citigroup | KRW | 219,616 | USD | 182 | 07/06/17 | (11 | ) |
Citigroup | KRW | 443,469 | USD | 371 | 07/06/17 | (19 | ) |
Citigroup | KRW | 453,087 | USD | 381 | 07/06/17 | (18 | ) |
Citigroup | PEN | 5,380 | USD | 1,621 | 07/19/17 | (24 | ) |
Citigroup | SGD | 2,403 | USD | 1,697 | 05/15/17 | (23 | ) |
Citigroup | TWD | 3,580 | USD | 119 | 07/06/17 | — | |
HSBC | USD | 356 | ZAR | 4,680 | 07/05/17 | (10 | ) |
HSBC | MXN | 1,448 | USD | 76 | 05/03/17 | — | |
HSBC | RON | 351 | USD | 84 | 05/03/17 | — | |
JPMorgan Chase | USD | 405 | ARS | 7,005 | 07/11/17 | 35 | |
JPMorgan Chase | USD | 906 | BRL | 2,862 | 05/03/17 | (4 | ) |
JPMorgan Chase | USD | 3,252 | BRL | 10,400 | 05/03/17 | 25 | |
JPMorgan Chase | USD | 382 | BRL | 1,211 | 05/10/17 | (1 | ) |
JPMorgan Chase | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
JPMorgan Chase | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
JPMorgan Chase | USD | 186 | CAD | 247 | 07/05/17 | (5 | ) |
JPMorgan Chase | USD | 673 | CLP | 438,381 | 05/18/17 | (16 | ) |
JPMorgan Chase | USD | 197 | COP | 567,595 | 05/18/17 | (4 | ) |
JPMorgan Chase | USD | 101 | COP | 306,131 | 06/13/17 | 2 | |
JPMorgan Chase | USD | 101 | COP | 294,769 | 06/13/17 | (1 | ) |
JPMorgan Chase | USD | 101 | COP | 299,061 | 06/13/17 | — | |
JPMorgan Chase | USD | 101 | COP | 296,536 | 06/13/17 | (1 | ) |
JPMorgan Chase | USD | 101 | COP | 305,121 | 06/13/17 | 2 | |
JPMorgan Chase | USD | 101 | COP | 304,111 | 06/13/17 | 2 | |
JPMorgan Chase | USD | 101 | COP | 300,122 | 06/13/17 | — | |
JPMorgan Chase | USD | 101 | COP | 297,344 | 06/13/17 | (1 | ) |
JPMorgan Chase | USD | 2,334 | HUF | 686,416 | 05/18/17 | 54 | |
JPMorgan Chase | USD | 613 | IDR | 8,956,200 | 12/04/17 | 42 | |
JPMorgan Chase | USD | 300 | IDR | 4,331,631 | 12/27/17 | 16 | |
JPMorgan Chase | USD | 1,750 | IDR | 25,147,561 | 12/27/17 | 84 | |
JPMorgan Chase | USD | 183 | IDR | 2,589,652 | 01/05/18 | 6 | |
JPMorgan Chase | USD | 189 | IDR | 2,673,883 | 01/05/18 | 6 | |
JPMorgan Chase | USD | 308 | IDR | 4,358,046 | 01/05/18 | 9 | |
JPMorgan Chase | USD | 640 | IDR | 8,915,200 | 03/20/18 | 3 | |
JPMorgan Chase | USD | 556 | INR | 38,054 | 08/16/17 | 29 | |
JPMorgan Chase | USD | 767 | MXN | 14,465 | 05/18/17 | (1 | ) |
JPMorgan Chase | USD | 2,370 | SGD | 3,333 | 05/15/17 | 16 | |
JPMorgan Chase | USD | 384 | ZAR | 5,344 | 05/18/17 | 15 | |
JPMorgan Chase | USD | 355 | ZAR | 4,680 | 07/05/17 | (9 | ) |
JPMorgan Chase | USD | 296 | ZAR | 3,989 | 07/10/17 | (1 | ) |
JPMorgan Chase | ARS | 2,773 | USD | 165 | 07/11/17 | (10 | ) |
JPMorgan Chase | ARS | 11,236 | USD | 667 | 07/11/17 | (39 | ) |
JPMorgan Chase | BRL | 2,862 | USD | 895 | 05/03/17 | (7 | ) |
JPMorgan Chase | BRL | 10,400 | USD | 3,299 | 05/03/17 | 22 | |
JPMorgan Chase | BRL | 6,189 | USD | 1,761 | 02/09/18 | (85 | ) |
JPMorgan Chase | CAD | 356 | USD | 260 | 07/05/17 | (1 | ) |
See accompanying notes which are an integral part of the financial statements.
324 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
JPMorgan Chase | CAD | 495 | USD | 371 | 07/05/17 | 8 | |
JPMorgan Chase | CAD | 636 | USD | 479 | 07/05/17 | 13 | |
JPMorgan Chase | HUF | 154,667 | USD | 543 | 05/05/17 | 5 | |
JPMorgan Chase | HUF | 154,667 | USD | 537 | 05/05/17 | (1 | ) |
JPMorgan Chase | IDR | 17,045,569 | USD | 1,280 | 05/18/17 | 3 | |
JPMorgan Chase | IDR | 25,147,561 | USD | 1,756 | 12/04/17 | (84 | ) |
JPMorgan Chase | KRW | 186,640 | USD | 164 | 07/06/17 | — | |
JPMorgan Chase | KRW | 219,270 | USD | 182 | 07/06/17 | (11 | ) |
JPMorgan Chase | KRW | 226,734 | USD | 190 | 07/06/17 | (9 | ) |
JPMorgan Chase | KRW | 357,840 | USD | 299 | 07/06/17 | (16 | ) |
JPMorgan Chase | KRW | 458,062 | USD | 380 | 07/06/17 | (23 | ) |
JPMorgan Chase | KRW | 473,488 | USD | 395 | 07/06/17 | (21 | ) |
JPMorgan Chase | MYR | 4,676 | USD | 1,050 | 06/20/17 | (28 | ) |
JPMorgan Chase | RON | 2,736 | USD | 640 | 07/19/17 | (18 | ) |
JPMorgan Chase | RON | 3,609 | USD | 860 | 07/19/17 | (7 | ) |
JPMorgan Chase | RUB | 93,195 | USD | 1,621 | 05/18/17 | (11 | ) |
JPMorgan Chase | RUB | 6,943 | USD | 120 | 07/10/17 | — | |
JPMorgan Chase | RUB | 34,681 | USD | 557 | 03/19/18 | (16 | ) |
JPMorgan Chase | SGD | 1,445 | USD | 1,015 | 05/15/17 | (19 | ) |
JPMorgan Chase | TWD | 5,364 | USD | 171 | 07/06/17 | (7 | ) |
JPMorgan Chase | TWD | 5,860 | USD | 184 | 07/06/17 | (11 | ) |
JPMorgan Chase | TWD | 5,885 | USD | 185 | 07/06/17 | (10 | ) |
JPMorgan Chase | TWD | 17,517 | USD | 548 | 07/06/17 | (33 | ) |
JPMorgan Chase | TWD | 20,086 | USD | 623 | 07/06/17 | (44 | ) |
JPMorgan Chase | TWD | 25,087 | USD | 782 | 07/06/17 | (51 | ) |
JPMorgan Chase | ZAR | 34,579 | USD | 2,476 | 05/18/17 | (104 | ) |
Royal Bank of Canada | USD | 14,428 | ILS | 52,863 | 05/23/17 | 176 | |
Royal Bank of Canada | USD | 3,098 | NZD | 4,418 | 05/23/17 | (66 | ) |
Royal Bank of Canada | CHF | 3,110 | USD | 3,124 | 05/23/17 | (5 | ) |
Royal Bank of Canada | CHF | 10,367 | USD | 10,415 | 05/23/17 | (17 | ) |
Royal Bank of Canada | ILS | 37,759 | USD | 10,306 | 05/23/17 | (126 | ) |
Standard Chartered | USD | 382 | BRL | 1,211 | 05/10/17 | (1 | ) |
Standard Chartered | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
Standard Chartered | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
Standard Chartered | USD | 233 | BRL | 757 | 06/09/17 | 3 | |
Standard Chartered | USD | 224 | BRL | 752 | 02/09/18 | — | |
Standard Chartered | USD | 445 | BRL | 1,495 | 02/09/18 | 1 | |
Standard Chartered | USD | 550 | CAD | 737 | 07/05/17 | (10 | ) |
Standard Chartered | USD | 197 | COP | 567,595 | 05/18/17 | (4 | ) |
Standard Chartered | USD | 101 | COP | 307,394 | 06/13/17 | 3 | |
Standard Chartered | USD | 1,510 | CZK | 37,213 | 05/03/17 | — | |
Standard Chartered | USD | 1,080 | CZK | 26,554 | 06/05/17 | (1 | ) |
Standard Chartered | USD | 247 | HUF | 70,989 | 05/05/17 | — | |
Standard Chartered | USD | 495 | HUF | 141,977 | 05/05/17 | (1 | ) |
Standard Chartered | USD | 2,334 | HUF | 686,416 | 05/18/17 | 54 | |
Standard Chartered | USD | 419 | IDR | 6,111,128 | 12/04/17 | 28 | |
Standard Chartered | USD | 374 | IDR | 5,320,671 | 12/15/17 | 14 | |
Standard Chartered | USD | 299 | IDR | 4,317,037 | 12/27/17 | 16 | |
Standard Chartered | USD | 311 | IDR | 4,464,945 | 12/27/17 | 15 | |
Standard Chartered | USD | 369 | IDR | 5,320,671 | 12/27/17 | 19 | |
Standard Chartered | USD | 938 | IDR | 13,516,580 | 01/05/18 | 46 | |
Standard Chartered | USD | 524 | INR | 35,873 | 08/16/17 | 28 | |
Standard Chartered | USD | 550 | KRW | 634,810 | 07/06/17 | 8 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 325
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Standard Chartered | USD | 840 | MXN | 15,930 | 05/03/17 | 7 | |
Standard Chartered | USD | 767 | MXN | 14,465 | 05/18/17 | — | |
Standard Chartered | USD | 1,487 | PLN | 5,950 | 05/18/17 | 46 | |
Standard Chartered | USD | 445 | RUB | 25,645 | 07/10/17 | (2 | ) |
Standard Chartered | USD | 355 | ZAR | 4,680 | 07/05/17 | (9 | ) |
Standard Chartered | USD | 199 | ZAR | 2,683 | 07/10/17 | — | |
Standard Chartered | BRL | 10,795 | USD | 3,362 | 10/03/17 | 69 | |
Standard Chartered | BRL | 1,742 | USD | 497 | 02/09/18 | (22 | ) |
Standard Chartered | CAD | 295 | USD | 216 | 07/05/17 | (1 | ) |
Standard Chartered | HUF | 140,018 | USD | 487 | 05/03/17 | — | |
Standard Chartered | HUF | 154,667 | USD | 543 | 05/05/17 | 5 | |
Standard Chartered | HUF | 154,667 | USD | 537 | 05/05/17 | (1 | ) |
Standard Chartered | HUF | 70,989 | USD | 249 | 11/06/17 | — | |
Standard Chartered | HUF | 141,977 | USD | 498 | 11/06/17 | 1 | |
Standard Chartered | IDR | 17,045,569 | USD | 1,280 | 05/18/17 | 3 | |
Standard Chartered | IDR | 5,320,671 | USD | 369 | 12/15/17 | (19 | ) |
Standard Chartered | INR | 30,546 | USD | 450 | 08/16/17 | (20 | ) |
Standard Chartered | KRW | 163,921 | USD | 139 | 07/06/17 | (5 | ) |
Standard Chartered | KRW | 241,443 | USD | 200 | 07/06/17 | (12 | ) |
Standard Chartered | KRW | 250,650 | USD | 211 | 07/06/17 | (10 | ) |
Standard Chartered | KRW | 257,248 | USD | 226 | 07/06/17 | — | |
Standard Chartered | PLN | 2,562 | USD | 660 | 05/18/17 | — | |
Standard Chartered | RON | 832 | USD | 200 | 07/19/17 | — | |
Standard Chartered | RUB | 93,195 | USD | 1,621 | 05/18/17 | (11 | ) |
Standard Chartered | SGD | 1,577 | USD | 1,108 | 05/15/17 | (21 | ) |
Standard Chartered | THB | 13,504 | USD | 390 | 07/20/17 | — | |
Standard Chartered | TRY | 3,556 | USD | 1,000 | 05/03/17 | (1 | ) |
Standard Chartered | TWD | 1,552 | USD | 49 | 07/06/17 | (3 | ) |
Standard Chartered | TWD | 5,247 | USD | 163 | 07/06/17 | (11 | ) |
Standard Chartered | TWD | 8,190 | USD | 258 | 07/06/17 | (14 | ) |
Standard Chartered | TWD | 13,730 | USD | 432 | 07/06/17 | (24 | ) |
Standard Chartered | ZAR | 11,135 | USD | 832 | 05/03/17 | (1 | ) |
State Street | USD | 168 | EUR | 157 | 05/08/17 | 3 | |
State Street | USD | 291 | GBP | 228 | 05/08/17 | 4 | |
State Street | USD | 17 | HKD | 129 | 05/23/17 | — | |
State Street | USD | 1,293 | PLN | 5,000 | 05/04/17 | (4 | ) |
State Street | USD | 106 | SGD | 149 | 05/23/17 | — | |
State Street | USD | 6,082 | SGD | 8,647 | 05/23/17 | 108 | |
State Street | USD | 95 | ZAR | 1,269 | 05/23/17 | — | |
State Street | CAD | 690 | USD | 515 | 06/14/17 | 9 | |
State Street | CHF | 256 | USD | 256 | 05/08/17 | (2 | ) |
State Street | DKK | 6,340 | USD | 906 | 06/14/17 | (25 | ) |
State Street | EUR | 120,340 | USD | 128,554 | 05/08/17 | (2,564 | ) |
State Street | EUR | 10,704 | USD | 11,380 | 05/12/17 | (285 | ) |
State Street | EUR | 45,000 | USD | 47,777 | 06/14/17 | (1,343 | ) |
State Street | GBP | 17,159 | USD | 21,425 | 05/08/17 | (802 | ) |
State Street | GBP | 2,111 | USD | 2,630 | 05/12/17 | (105 | ) |
State Street | GBP | 6,500 | USD | 7,942 | 06/14/17 | (487 | ) |
State Street | HKD | 427 | USD | 55 | 05/23/17 | — | |
State Street | SEK | 130,467 | USD | 14,538 | 05/23/17 | (207 | ) |
State Street | SEK | 8,000 | USD | 904 | 06/14/17 | (1 | ) |
State Street | SGD | 146 | USD | 104 | 05/23/17 | (1 | ) |
State Street | SGD | 610 | USD | 433 | 06/14/17 | (4 | ) |
See accompanying notes which are an integral part of the financial statements.
326 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
State Street | ZAR | 635 | USD | 48 | 05/23/17 | 1 | |
UBS | USD | 383 | BRL | 1,211 | 05/10/17 | (2 | ) |
UBS | USD | 283 | BRL | 917 | 06/09/17 | 3 | |
UBS | USD | 101 | COP | 295,324 | 06/13/17 | (1 | ) |
UBS | USD | 101 | COP | 297,546 | 06/13/17 | — | |
UBS | USD | 247 | HUF | 70,989 | 05/05/17 | — | |
UBS | USD | 495 | HUF | 141,977 | 05/05/17 | (1 | ) |
UBS | USD | 189 | IDR | 2,673,883 | 01/05/18 | 6 | |
UBS | USD | 1,488 | PLN | 5,950 | 05/18/17 | 45 | |
UBS | USD | 446 | RUB | 25,645 | 07/10/17 | (2 | ) |
UBS | BRL | 6,187 | USD | 1,761 | 02/09/18 | (84 | ) |
UBS | CAD | 156 | USD | 118 | 07/05/17 | 4 | |
UBS | CAD | 236 | USD | 177 | 07/05/17 | 4 | |
UBS | CAD | 886 | USD | 671 | 07/05/17 | 21 | |
UBS | HUF | 70,989 | USD | 249 | 11/06/17 | — | |
UBS | HUF | 141,977 | USD | 498 | 11/06/17 | 1 | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (4,234 | ) |
Credit Default Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Credit Indices | |||||||||
Fund (Pays)/ | |||||||||
Receives | Termination | Fair Value | |||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | ||||
CDX Emerging Markets Index | Bank of America | USD | 54,000 | 1.000 | % | 06/20/22 | (2,330 | ) | |
CDX Emerging Markets Index | Bank of America | USD | 28,000 | 1.000 | % | 06/20/22 | (1,209 | ) | |
CDX NA High Yield Index | Goldman Sachs | USD | 23,000 | 5.000 | % | 06/20/22 | 1,822 | ||
CDX NA High Yield Index | Goldman Sachs | USD | 48,000 | 5.000 | % | 06/20/22 | 3,806 | ||
iTraxx Europe Crossover Index | Morgan Stanley | EUR | 21,000 | 5.000 | % | 06/20/22 | 2,559 | ||
iTraxx Europe Crossover Index | Morgan Stanley | EUR | 11,000 | 5.000 | % | 06/20/22 | 1,339 | ||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $3,530 | 5,987 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||
Long-Term Fixed Income Investments | |||||||||||||||
Argentina | — | 26,411 | — | — | 26,411 | 1.5 | |||||||||
Australia | — | 1,711 | — | — | 1,711 | 0.1 | |||||||||
Austria | — | 923 | — | — | 923 | 0.0 | |||||||||
Azerbaijan | — | 1,981 | — | — | 1,981 | 0.1 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 327
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Bahrain | — | 2,140 | — | — | 2,140 | 0.1 | ||||||||||
Belgium | — | 1,708 | — | — | 1,708 | 0.1 | ||||||||||
Bermuda | — | 3,956 | — | — | 3,956 | 0.1 | ||||||||||
Brazil | — | 39,268 | — | — | 39,268 | 2.0 | ||||||||||
Canada | — | 50,237 | — | — | 50,237 | 3.2 | ||||||||||
Cayman Islands | — | 5,734 | — | — | 5,734 | 0.3 | ||||||||||
Chile | — | 6,440 | — | — | 6,440 | 0.3 | ||||||||||
China | — | 4,980 | — | — | 4,980 | 0.3 | ||||||||||
Colombia | — | 25,515 | — | — | 25,515 | 1.5 | ||||||||||
Costa Rica | — | 6,020 | — | — | 6,020 | 0.4 | ||||||||||
Croatia | — | 5,996 | — | — | 5,996 | 0.3 | ||||||||||
Czech Republic | — | 1,483 | — | — | 1,483 | – | ||||||||||
Denmark | — | 2,632 | 314 | — | 2,946 | 0.1 | ||||||||||
Dominican Republic | — | 10,962 | — | — | 10,962 | 0.5 | ||||||||||
Egypt | — | 9,034 | — | — | 9,034 | 0.5 | ||||||||||
El Salvador | — | 7,452 | — | — | 7,452 | 0.4 | ||||||||||
Ethiopia | — | 988 | — | — | 988 | 0.1 | ||||||||||
Finland | — | 1,093 | — | — | 1,093 | 0.1 | ||||||||||
France | — | 36,320 | — | — | 36,320 | 2.2 | ||||||||||
Gabon | — | 490 | — | — | 490 | 0.0 | ||||||||||
Germany | — | 15,270 | — | — | 15,270 | 0.6 | ||||||||||
Ghana | — | 7,126 | — | — | 7,126 | 0.3 | ||||||||||
Greece | — | 2,076 | — | — | 2,076 | 0.1 | ||||||||||
Honduras | — | 3,221 | — | — | 3,221 | 0.1 | ||||||||||
Hungary | — | 11,930 | — | — | 11,930 | 0.7 | ||||||||||
Indonesia | — | 33,440 | — | — | 33,440 | 1.8 | ||||||||||
Iraq | — | 4,245 | — | — | 4,245 | 0.2 | ||||||||||
Ireland | — | 7,619 | — | — | 7,619 | 0.4 | ||||||||||
Italy | — | 26,239 | — | — | 26,239 | 1.6 | ||||||||||
Ivory Coast | — | 1,410 | — | — | 1,410 | 0.1 | ||||||||||
Japan | — | 925 | — | — | 925 | 0.1 | ||||||||||
Jersey | — | 3,138 | — | — | 3,138 | 0.3 | ||||||||||
Kazakhstan | — | 8,504 | — | — | 8,504 | 0.6 | ||||||||||
Kenya | — | 3,081 | — | — | 3,081 | 0.2 | ||||||||||
Lebanon | — | 5,236 | — | — | 5,236 | 0.3 | ||||||||||
Luxembourg | — | 84,771 | — | — | 84,771 | 4.8 | ||||||||||
Malaysia | — | 15,838 | — | — | 15,838 | 0.9 | ||||||||||
Mexico | — | 56,506 | — | — | 56,506 | 3.0 | ||||||||||
Mongolia | — | 3,302 | — | — | 3,302 | 0.2 | ||||||||||
Morocco | — | 1,355 | — | — | 1,355 | 0.1 | ||||||||||
Mozambique | — | 739 | — | — | 739 | 0.0 |
See accompanying notes which are an integral part of the financial statements.
328 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Netherlands | — | 45,645 | — | — | 45,645 | 2.6 | |||||||||||
Nigeria | — | 1,061 | — | — | 1,061 | 0.1 | |||||||||||
Norway | — | 519 | — | — | 519 | 0.0 | |||||||||||
Pakistan | — | 8,367 | — | — | 8,367 | 0.4 | |||||||||||
Panama | — | 8,621 | — | — | 8,621 | 0.5 | |||||||||||
Paraguay | — | 3,826 | — | — | 3,826 | 0.2 | |||||||||||
Peru | — | 13,725 | — | — | 13,725 | 0.8 | |||||||||||
Philippines | — | 3,212 | — | — | 3,212 | 0.2 | |||||||||||
Poland | — | 22,244 | — | — | 22,244 | 1.0 | |||||||||||
Portugal | — | 996 | — | — | 996 | 0.0 | |||||||||||
Romania | — | 5,104 | — | — | 5,104 | 0.3 | |||||||||||
Russia | — | 19,689 | — | — | 19,689 | 1.2 | |||||||||||
Serbia | — | 4,927 | — | — | 4,927 | 0.3 | |||||||||||
Singapore | — | 441 | — | — | 441 | 0.0 | |||||||||||
Slovenia | — | 2,286 | — | — | 2,286 | 0.1 | |||||||||||
South Africa | — | 27,848 | — | — | 27,848 | 1.6 | |||||||||||
Spain | — | 11,293 | — | — | 11,293 | 0.6 | |||||||||||
Sri Lanka | — | 7,866 | — | — | 7,866 | 0.4 | |||||||||||
Sweden | — | 6,142 | — | — | 6,142 | 0.3 | |||||||||||
Switzerland | — | 1,081 | — | — | 1,081 | 0.0 | |||||||||||
Thailand | — | 13,987 | — | — | 13,987 | 0.8 | |||||||||||
Turkey | — | 36,342 | — | — | 36,342 | 2.1 | |||||||||||
Ukraine | — | 3,210 | — | — | 3,210 | 0.2 | |||||||||||
United Kingdom | — | 67,965 | — | — | 67,965 | 3.8 | |||||||||||
United States | — | 699,070 | — | — | 699,070 | 38.3 | |||||||||||
Uruguay | — | 285 | — | — | 285 | 0.0 | |||||||||||
Venezuela, Bolivarian Republic of | — | 19,143 | — | — | 19,143 | 1.1 | |||||||||||
Vietnam | — | 1,639 | — | — | 1,639 | 0.1 | |||||||||||
Common Stocks | |||||||||||||||||
United States | $ | 970 | $ | 17 | $ | — | $ | — | $ | 987 | 0.1 | ||||||
Preferred Stocks | 5,611 | — | — | — | 5,611 | 0.3 | |||||||||||
Options Purchased | — | 424 | — | — | 424 | — | |||||||||||
Warrants & Rights | — | — | 653 | — | 653 | — | |||||||||||
Short-Term Investments | — | 65,990 | 7,700 | 101,871 | 175,347 | 9.6 | |||||||||||
Total Investments | 6,581 | 1,652,410 | 8,667 | 101,871 | 1,769,529 | 97.7 | |||||||||||
Other Assets and Liabilities, Net | 2.3 | ||||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 7,494 | — | — | — | 7,494 | 0.4 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 329
Russell Investment Company
Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Options Written | — | — | — | — | — | — | |||||||||||
Foreign Currency Exchange Contracts | 9 | 4,537 | — | — | 4,546 | 0.1 | |||||||||||
Credit Default Swap Contracts | — | 9,526 | — | — | 9,526 | 0.5 | |||||||||||
A | |||||||||||||||||
Liabilities | |||||||||||||||||
Futures Contracts | (2,790 | ) | — | — | — | (2,790 | ) | (0.1 | ) | ||||||||
Options Written | — | (47 | ) | — | — | (47 | ) | — | |||||||||
Foreign Currency Exchange Contracts | (13 | ) | (8,767 | ) | — | — | (8,780 | ) | (0.3 | ) | |||||||
Credit Default Swap Contracts | — | (3,539 | ) | — | — | (3,539 | ) | (0.2 | ) | ||||||||
Total Other Financial Instruments* | $ | 4,700 | $ | 1,710 | $ | — | $ | — | $ | 6,410 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
d
See accompanying notes which are an integral part of the financial statements.
330 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||||
Credit | Currency | Interest Rate | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | ||||||||
Investments, at fair value* | $ | — | $ | 424 | $ | — | ||
Unrealized appreciation on foreign currency exchange contracts | — | 4,546 | — | |||||
Variation margin on futures contracts** | — | — | 7,494 | |||||
Credit default swap contracts, at fair value | 9,526 | — | — | |||||
Total | $ | 9,526 | $ | 4,970 | $ | 7,494 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||||||
Variation margin on futures contracts** | $ | — | $ | — | $ | 2,790 | ||
Unrealized depreciation on foreign currency exchange contracts | — | 8,780 | — | |||||
Options written, at fair value | — | 47 | — | |||||
Credit default swap contracts, at fair value | 3,539 | — | — | |||||
Total | $ | 3,539 | $ | 8,827 | $ | 2,790 | ||
Foreign | ||||||||
Credit | Currency | Interest Rate | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | ||||||||
Investments*** | $ | — | $ | 89 | $ | — | ||
Futures contracts | — | — | (20,162 | ) | ||||
Options written | — | (91 | ) | — | ||||
Credit default swap contracts | 8,309 | — | — | |||||
Foreign currency-related transactions**** | — | 4,017 | — | |||||
Total | $ | 8,309 | $ | 4,015 | $ | (20,162 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||||
Investments***** | $ | — | $ | 167 | $ | — | ||
Futures contracts | — | — | 4,444 | |||||
Options written | — | (16 | ) | — | ||||
Credit default swap contracts | 1,632 | — | — | |||||
Foreign currency-related transactions****** | — | (8,180 | ) | — | ||||
Total | $ | 1,632 | $ | (8,029 | ) | $ | 4,444 |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Schedule of Investments.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 331
Russell Investment Company
Global Opportunistic Credit Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 424 | $ | — $ | 424 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 4,546 | — | 4,554 | |||||
Futures Contracts | Variation margin on futures contracts | 940 | — | 940 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 9,526 | — | 9,526 | |||||
Total Financial and Derivative Assets | 15,436 | — | 15,436 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (10,468 | ) | — | (10,468 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 4,968 | $ | — $ | 4,968 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of America | $ | 1,379 | $ | 370 | $ | — | $ 1,009 | ||
Bank of Montreal | 161 | 161 | — | — | |||||
Bank of New York | 421 | 279 | — | 142 | |||||
Barclays | 866 | 419 | — | 447 | |||||
Citigroup | 571 | 267 | — | 304 | |||||
JPMorgan Chase | 822 | 762 | — | 60 | |||||
Royal Bank of Canada | 176 | 176 | — | — | |||||
Standard Chartered | 361 | — | — | 361 | |||||
State Street | 125 | 125 | — | — | |||||
UBS | 86 | 86 | — | — | |||||
Total | $ | 4,968 | $ | 2,645 | $ | — | $ 2,323 |
See accompanying notes which are an integral part of the financial statements.
332 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 32 | $ | — $ | 32 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 8,780 | — | 8,788 | |||||
Options Written Contracts | Options written, at fair value | 47 | — | 47 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 3,539 | — | 3,539 | |||||
Total Financial and Derivative Liabilities | 12,398 | — | 12,398 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (3,578 | ) | — | (3,578 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 8,820 | $ | — $ | 8,820 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 370 | $ | 370 | $ | — | $ — | ||
Bank of Montreal | 341 | 161 | — | 180 | |||||
Bank of New York | 279 | 279 | — | — | |||||
Barclays | 419 | 419 | — | — | |||||
Citigroup | 300 | 267 | — | 33 | |||||
HSBC | 9 | — | — | 9 | |||||
JPMorgan Chase | 762 | 762 | — | — | |||||
Royal Bank of Canada | 214 | 176 | — | 38 | |||||
Standard Chartered | 208 | — | — | 208 | |||||
State Street | 5,826 | 125 | — | 5,701 | |||||
UBS | 92 | 86 | — | 6 | |||||
Total | $ | 8,820 | $ | 2,645 | $ | — | $ 6,175 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 333
Russell Investment Company
Global Opportunistic Credit Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 1,752,930 |
Investments, at fair value(>) | 1,769,529 | |
Cash (restricted)(a)(b) | 26,712 | |
Foreign currency holdings(^) | 2,912 | |
Unrealized appreciation on foreign currency exchange contracts | 4,546 | |
Receivables: | ||
Dividends and interest | 23,997 | |
Dividends from affiliated funds | 74 | |
Investments sold | 15,593 | |
Fund shares sold | 1,734 | |
Foreign capital gains taxes recoverable | 220 | |
Investments matured(<) | 3,521 | |
Variation margin on futures contracts | 940 | |
Prepaid expenses | 20 | |
Credit default swap, contracts, at fair value(+) | 9,526 | |
Total assets | 1,859,324 | |
Liabilities | ||
Payables: | ||
Due to custodian | 267 | |
Due to broker (c) | 6,562 | |
Investments purchased | 18,142 | |
Fund shares redeemed | 1,669 | |
Accrued fees to affiliates | 1,174 | |
Other accrued expenses | 676 | |
Variation margin on futures contracts | 32 | |
Deferred capital gains tax liability | 249 | |
Unfunded loan commitment | 2,182 | |
Unrealized depreciation on foreign currency exchange contracts | 8,780 | |
Options written, at fair value(x) | 47 | |
Credit default swap, contracts, at fair value(+) | 3,539 | |
Total liabilities | 43,319 | |
Commitments and Contingencies (1) | ||
Net Assets | $ | 1,816,005 |
(1) See note 9 in the Notes to Financial Statements for a detailed description of commitments and contingencies. |
See accompanying notes which are an integral part of the financial statements.
334 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 9,186 | |
Accumulated net realized gain (loss) | (69,432 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 16,350 | ||
Futures contracts | 4,704 | ||
Options written | (16 | ) | |
Credit default swap contracts | 2,457 | ||
Investments matured | (179 | ) | |
Foreign currency-related transactions | (4,195 | ) | |
Other investments | 260 | ||
Shares of beneficial interest | 1,849 | ||
Additional paid-in capital | 1,855,021 | ||
Net Assets | $ | 1,816,005 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 9.79 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 10.17 | |
Class A — Net assets | $ | 5,525,036 | |
Class A — Shares outstanding ($.01 par value) | 564,590 | ||
Net asset value per share: Class C(#) | $ | 9.73 | |
Class C — Net assets | $ | 7,543,059 | |
Class C — Shares outstanding ($.01 par value) | 774,971 | ||
Net asset value per share: Class E(#) | $ | 9.83 | |
Class E — Net assets | $ | 601,246 | |
Class E — Shares outstanding ($.01 par value) | 61,179 | ||
Net asset value per share: Class S(#) | $ | 9.82 | |
Class S — Net assets | $ 1,229,732,717 | ||
Class S — Shares outstanding ($.01 par value) | 125,220,448 | ||
Net asset value per share: Class T(#) | $ | 9.81 | |
Class T — Net assets | $ | 1,824,562 | |
Class T — Shares outstanding ($.01 par value) | 185,919 | ||
Net asset value per share: Class Y(#) | $ | 9.82 | |
Class Y — Net assets | $ | 570,778,137 | |
Class Y — Shares outstanding ($.01 par value) | 58,104,485 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 3,022 | |
(x) Premiums received on options written | $ | 31 | |
(+) Credit default swap contracts - premiums paid (received) | $ | 3,530 | |
(<) Investments matured - cost | $ | 3,700 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 101,871 | |
(a) Cash Collateral for Futures | $ | 13,300 | |
(b) Cash Collateral for Swaps | $ | 13,412 | |
(c) Due to Broker for Swaps | $ | 6,562 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 335
Russell Investment Company
Global Opportunistic Credit Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 230 | |
Dividends from affiliated funds | 525 | ||
Interest | 58,158 | ||
Less foreign taxes withheld | (219 | ) | |
Total investment income | 58,694 | ||
Expenses | |||
Advisory fees | 9,634 | ||
Administrative fees | 465 | ||
Custodian fees | 395 | ||
Distribution fees - Class A | 7 | ||
Distribution fees - Class C | 29 | ||
Transfer agent fees - Class A | 5 | ||
Transfer agent fees - Class C | 8 | ||
Transfer agent fees - Class E | 16 | ||
Transfer agent fees - Class S | 1,305 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 13 | ||
Professional fees | 79 | ||
Registration fees | 63 | ||
Shareholder servicing fees - Class C | 10 | ||
Shareholder servicing fees - Class E | 20 | ||
Trustees’ fees | 31 | ||
Printing fees | 103 | ||
Miscellaneous | 11 | ||
Expenses before reductions | 12,194 | ||
Expense reductions | (3,921 | ) | |
Net expenses | 8,273 | ||
Net investment income (loss) | 50,421 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | (200 | ) | |
Futures contracts | (20,162 | ) | |
Options written | (91 | ) | |
Credit default swap contracts | 8,309 | ||
Foreign currency-related transactions | 4,258 | ||
Net realized gain (loss) | (7,886 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 28,140 | ||
Futures contracts | 4,444 | ||
Options written | (16 | ) | |
Credit default swap contracts | 1,632 | ||
Investment matured | (179 | ) | |
Foreign currency-related transactions | (7,912 | ) | |
Other investments | 260 | ||
Net change in unrealized appreciation (depreciation) | 26,369 | ||
Net realized and unrealized gain (loss) | 18,483 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 68,904 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
336 Global Opportunistic Credit Fund
Russell Investment Company
Global Opportunistic Credit Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 50,421 | $ | 91,952 | ||
Net realized gain (loss) | (7,886 | ) | (48,754 | ) | ||
Net change in unrealized appreciation (depreciation) | 26,369 | 118,457 | ||||
Net increase (decrease) in net assets from operations | 68,904 | 161,655 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (133 | ) | (166 | ) | ||
Class C | (174 | ) | (209 | ) | ||
Class E | (676 | ) | (1,012 | ) | ||
Class S | (35,734 | ) | (38,691 | ) | ||
Class T | (—)** | — | ||||
Class Y | (16,387 | ) | (20,917 | ) | ||
Net decrease in net assets from distributions | (53,104 | ) | (60,995 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (232,966 | ) | 183,363 | |||
Total Net Increase (Decrease) in Net Assets | (217,166 | ) | 284,023 | |||
Net Assets | ||||||
Beginning of period | 2,033,171 | 1,749,148 | ||||
End of period | $ | 1,816,005 | $ | 2,033,171 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 9,186 | $ | 11,869 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 337
Russell Investment Company
Global Opportunistic Credit Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 56 | $ | 544 | 145 | $ | 1,302 | ||||||
Proceeds from reinvestment of distributions | 14 | 129 | 17 | 160 | ||||||||
Payments for shares redeemed | (73 | ) | (700 | ) | (126 | ) | (1,162 | ) | ||||
Net increase (decrease) | (3 | ) | (27 | ) | 36 | 300 | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 43 | 410 | 135 | 1,261 | ||||||||
Proceeds from reinvestment of distributions | 19 | 173 | 22 | 208 | ||||||||
Payments for shares redeemed | (137 | ) | (1,293 | ) | (379 | ) | (3,448 | ) | ||||
Net increase (decrease) | (75 | ) | (710 | ) | (222 | ) | (1,979 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 113 | 1,059 | 942 | 9,013 | ||||||||
Proceeds from reinvestment of distributions | 71 | 668 | 105 | 976 | ||||||||
Payments for shares redeemed | (3,867 | ) | (36,693 | ) | (703 | ) | (6,491 | ) | ||||
Net increase (decrease) | (3,683 | ) | (34,966 | ) | 344 | 3,498 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 19,389 | 184,798 | 56,493 | 536,344 | ||||||||
Proceeds from reinvestment of distributions | 3,767 | 35,585 | 4,134 | 38,476 | ||||||||
Payments for shares redeemed | (36,930 | ) | (352,911 | ) | (42,189 | ) | (387,333 | ) | ||||
Net increase (decrease) | (13,774 | ) | (132,528 | ) | 18,438 | 187,487 | ||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 186 | 1,805 | — | — | ||||||||
Payments for shares redeemed | (—)** | (2 | ) | — | — | |||||||
Net increase (decrease) | 186 | 1,803 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 1,711 | 16,280 | 14,649 | 136,113 | ||||||||
Proceeds from reinvestment of distributions | 1,734 | 16,387 | 2,254 | 20,914 | ||||||||
Payments for shares redeemed | (10,349 | ) | (99,205 | ) | (17,741 | ) | (162,970 | ) | ||||
Net increase (decrease) | (6,904 | ) | (66,538 | ) | (838 | ) | (5,943 | ) | ||||
Total increase (decrease) | (24,253 | ) | $ | (232,966 | ) | 17,758 | $ | 183,363 |
** Less than 500 shares.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
338 Global Opportunistic Credit Fund
(This page intentionally left blank)
Russell Investment Company
Global Opportunistic Credit Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 9.69 | .23 | .11 | .34 | (.24 | ) | — | |||||||||
October 31, 2016 | 9.11 | .46 | .42 | .88 | (.30 | ) | — | |||||||||
October 31, 2015 | 9.97 | .49 | (.82 | ) | (.33 | ) | (.47 | ) | (.06 | ) | ||||||
October 31, 2014 | 10.18 | .46 | (.15 | ) | .31 | (.45 | ) | (.07 | ) | |||||||
October 31, 2013 | 10.47 | .52 | (.17 | ) | .35 | (.57 | ) | (.07 | ) | |||||||
October 31, 2012 | 10.32 | .58 | .67 | 1.25 | (1.10 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 9.64 | .20 | .10 | .30 | (.21 | ) | — | |||||||||
October 31, 2016 | 9.06 | .39 | .42 | .81 | (.23 | ) | — | |||||||||
October 31, 2015 | 9.93 | .41 | (.81 | ) | (.40 | ) | (.41 | ) | (.06 | ) | ||||||
October 31, 2014 | 10.14 | .39 | (.15 | ) | .24 | (.38 | ) | (.07 | ) | |||||||
October 31, 2013 | 10.44 | .42 | (.15 | ) | .27 | (.50 | ) | (.07 | ) | |||||||
October 31, 2012 | 10.25 | .51 | .67 | 1.18 | (.99 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 9.70 | .23 | .11 | .34 | (.21 | ) | — | |||||||||
October 31, 2016 | 9.12 | .46 | .42 | .88 | (.30 | ) | — | |||||||||
October 31, 2015 | 9.99 | .49 | (.83 | ) | (.34 | ) | (.47 | ) | (.06 | ) | ||||||
October 31, 2014 | 10.20 | .46 | (.15 | ) | .31 | (.45 | ) | (.07 | ) | |||||||
October 31, 2013 | 10.49 | .52 | (.17 | ) | .35 | (.57 | ) | (.07 | ) | |||||||
October 31, 2012 | 10.32 | .59 | .67 | 1.26 | (1.09 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 9.72 | .25 | .10 | .35 | (.25 | ) | — | |||||||||
October 31, 2016 | 9.14 | .49 | .41 | .90 | (.32 | ) | — | |||||||||
October 31, 2015 | 10.00 | .51 | (.81 | ) | (.30 | ) | (.50 | ) | (.06 | ) | ||||||
October 31, 2014 | 10.21 | .49 | (.15 | ) | .34 | (.48 | ) | (.07 | ) | |||||||
October 31, 2013 | 10.50 | .54 | (.16 | ) | .38 | (.60 | ) | (.07 | ) | |||||||
October 31, 2012 | 10.35 | .62 | .66 | 1.28 | (1.13 | ) | — | |||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 9.60 | .06 | .16 | .22 | (.01 | ) | — | |||||||||
Class Y | ||||||||||||||||
April 30, 2017* | 9.72 | .25 | .11 | .36 | (.26 | ) | — | |||||||||
October 31, 2016 | 9.14 | .49 | .42 | .91 | (.33 | ) | — | |||||||||
October 31, 2015 | 10.00 | .52 | (.82 | ) | (.30 | ) | (.50 | ) | (.06 | ) | ||||||
October 31, 2014 | 10.22 | .50 | (.17 | ) | .33 | (.48 | ) | (.07 | ) | |||||||
October 31, 2013 | 10.51 | .56 | (.17 | ) | .39 | (.61 | ) | (.07 | ) | |||||||
October 31, 2012 | 10.36 | .63 | .66 | 1.29 | (1.14 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
340 Global Opportunistic Credit Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b)(k) | |||||||||
(.24 | ) | 9.79 | 3.65 | 5,525 | 1.57 | 1.13 | 4.97 | 32 | |||||||||
(.30 | ) | 9.69 | 9.81 | 5,501 | 1.58 | 1.14 | 5.02 | 68 | |||||||||
(.53 | ) | 9.11 | (3.35 | ) | 4,849 | 1.58 | 1.15 | 5.18 | 98 | ||||||||
(.52 | ) | 9.97 | 3.15 | 5,745 | 1.57 | 1.17 | 4.61 | 80 | |||||||||
(.64 | ) | 10.18 | 3.48 | 8,273 | 1.59 | 1.20 | 5.12 | 85 | |||||||||
(1.10 | ) | 10.47 | 13.09 | 8,857 | 1.57 | 1.20 | 5.67 | 109 | |||||||||
(.21 | ) | 9.73 | 3.21 | 7,543 | 2.32 | 1.88 | 4.21 | 32 | |||||||||
(.23 | ) | 9.64 | 9.03 | 8,192 | 2.33 | 1.89 | 4.27 | 68 | |||||||||
(.47 | ) | 9.06 | (4.14 | ) | 9,711 | 2.32 | 1.90 | 4.40 | 98 | ||||||||
(.45 | ) | 9.93 | 2.41 | 13,224 | 2.32 | 1.92 | 3.86 | 80 | |||||||||
(.57 | ) | 10.14 | 2.65 | 12,184 | 2.34 | 1.95 | 4.34 | 85 | |||||||||
(.99 | ) | 10.44 | 12.33 | 6,918 | 2.32 | 1.95 | 4.94 | 109 | |||||||||
(.21 | ) | 9.83 | 3.66 | 601 | 1.55 | 1.11 | 4.99 | 32 | |||||||||
(.30 | ) | 9.70 | 9.80 | 36,334 | 1.58 | 1.14 | 5.00 | 68 | |||||||||
(.53 | ) | 9.12 | (3.44 | ) | 31,022 | 1.58 | 1.15 | 5.22 | 98 | ||||||||
(.52 | ) | 9.99 | 3.16 | 29,115 | 1.57 | 1.17 | 4.59 | 80 | |||||||||
(.64 | ) | 10.20 | 3.42 | 15,856 | 1.59 | 1.20 | 5.09 | 85 | |||||||||
(1.09 | ) | 10.49 | 13.18 | 13,165 | 1.57 | 1.20 | 5.75 | 109 | |||||||||
(.25 | ) | 9.82 | 3.77 | 1,229,733 | 1.32 | .88 | 5.22 | 32 | |||||||||
(.32 | ) | 9.72 | 10.05 | 1,351,075 | 1.33 | .89 | 5.23 | 68 | |||||||||
(.56 | ) | 9.14 | (3.11 | ) | 1,101,648 | 1.33 | .90 | 5.45 | 98 | ||||||||
(.55 | ) | 10.00 | 3.41 | 1,082,505 | 1.32 | .92 | 4.86 | 80 | |||||||||
(.67 | ) | 10.21 | 3.72 | 590,280 | 1.34 | .95 | 5.33 | 85 | |||||||||
(1.13 | ) | 10.50 | 13.37 | 457,523 | 1.32 | .95 | 6.00 | 109 | |||||||||
(.01 | ) | 9.81 | 2.24 | 1,825 | 1.34 | .83 | 4.80 | 32 | |||||||||
(.26 | ) | 9.82 | 3.81 | 570,778 | 1.12 | .80 | 5.29 | 32 | |||||||||
(.33 | ) | 9.72 | 10.13 | 632,069 | 1.14 | .81 | 5.34 | 68 | |||||||||
(.56 | ) | 9.14 | (3.04 | ) | 601,918 | 1.13 | .82 | 5.56 | 98 | ||||||||
(.55 | ) | 10.00 | 3.39 | 458,277 | 1.12 | .84 | 4.92 | 80 | |||||||||
(.68 | ) | 10.22 | 3.76 | 315,477 | 1.14 | .86 | 5.43 | 85 | |||||||||
(1.14 | ) | 10.51 | 13.43 | 308,114 | 1.13 | .85 | 6.11 | 109 |
See accompanying notes which are an integral part of the financial statements.
Global Opportunistic Credit Fund 341
Russell Investment Company
Global Opportunistic Credit Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended October 31, 2016 were as follows: | ||
Advisory fees | $ | 1,008,660 |
Administration fees | 72,003 | |
Distribution fees | 5,781 | |
Shareholder servicing fees | 1,686 | |
Transfer agent fees | 83,638 | |
Trustee fees | 2,689 | |
$ | 1,174,457 |
Transactions (amounts in thousands) during the period ended October 31, 2016 with Underlying Funds which are, or were, an | |||||||||||||||
affiliated company are as follows: | |||||||||||||||
Fair Value, | Change in | ||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||
U.S. Cash Management Fund | $ | 171,871 | $ | 847,285 | $ | 917,266 | $ | — | $ (19) | $ 101,871 | $ | 525 | $ | — | |
$ | 171,871 | $ | 847,285 | $ | 917,266 | $ | — | $ (19) | $ 101,871 | $ | 525 | $ | — |
Federal Income Taxes (Unaudited)
At October 31, 2016, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 1,758,528,013 | |||
Unrealized Appreciation | $ | 41,944,367 | |||
Unrealized Depreciation | (30,943,214 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 11,001,153 |
See accompanying notes which are an integral part of the financial statements.
342 Global Opportunistic Credit Fund
Russell Investment Company
Unconstrained Total Return Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,012.60 | $ | 1,018.99 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 5.84 | $ | 5.86 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.17% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,009.00 | $ | 1,015.27 | |
Expenses Paid During Period* | $ | 9.56 | $ | 9.59 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.92% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,012.60 | $ | 1,018.99 | |
of other funds. | Expenses Paid During Period* | $ | 5.84 | $ | 5.86 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.17% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Unconstrained Total Return Fund 343
Russell Investment Company
Unconstrained Total Return Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,014.00 | $ | 1,020.23 | ||
Expenses Paid During Period* | $ | 4.59 | $ | 4.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.92% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,010.60 | $ | 1,020.73 | ||
Expenses Paid During Period* | $ | 1.02 | $ | 4.11 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.82% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
0.82% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,014.80 | $ | 1,021.22 | ||
Expenses Paid During Period* | $ | 3.60 | $ | 3.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.72% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
344 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Long-Term Investments - 67.1% | 5.500% due 04/15/24 (Þ) | 216 | 218 | ||||
Asset-Backed Securities - 0.2% | Cable One, Inc. | ||||||
GSAA Home Equity Trust | 5.750% due 06/15/22 (Þ) | 1,950 | 2,043 | ||||
Series 2005-15 Class 2A2 | CBS Radio, Inc. | ||||||
1.021% due 01/25/36 (Ê) | 839 | 578 | 7.250% due 11/01/24 (Þ) | 200 | 218 | ||
CCO Holdings LLC / CCO Holdings | |||||||
Morgan Stanley ABS Capital I, Inc. Trust | Capital Corp. | ||||||
Series 2004-NC1 Class M2 | 5.250% due 03/15/21 | 1,750 | 1,803 | ||||
3.096% due 12/27/33 (Ê) | 520 | 516 | Cedar Fair LP/Canada's Wonderland | ||||
1,094 | Co./Magnum Management | ||||||
Corporate Bonds and Notes - 23.5% | Corp./Mellennium Operations LLC | ||||||
5.375% due 04/15/27 (Þ) | 74 | 76 | |||||
Acadia Healthcare Co., Inc. | Cedar Fair, LP / Canada's Wonderland | ||||||
5.125% due 07/01/22 | 1,700 | 1,719 | Co. / Magnum Management Corp. | ||||
ACI Worldwide, Inc. | 5.250% due 03/15/21 | 1,000 | 1,027 | ||||
6.375% due 08/15/20 (Þ) | 2,500 | 2,566 | Centene Corp. | ||||
ADT Corp. (The) | 4.750% due 01/15/25 | 289 | 294 | ||||
6.250% due 10/15/21 | 2,250 | 2,468 | |||||
3.500% due 07/15/22 | 1,500 | 1,451 | Series WI | ||||
AECOM Global II LLC / URS Fox US, | 5.625% due 02/15/21 | 1,500 | 1,577 | ||||
LP | CenturyLink, Inc. | ||||||
5.000% due 04/01/22 | 3,023 | 3,067 | Series S | ||||
Aircastle, Ltd. | 6.450% due 06/15/21 | 650 | 702 | ||||
5.125% due 03/15/21 | 1,600 | 1,706 | Series V | ||||
5.500% due 02/15/22 | 1,000 | 1,083 | 5.625% due 04/01/20 | 1,500 | 1,592 | ||
Alere, Inc. | Churchill Downs, Inc. | ||||||
7.250% due 07/01/18 | 2,000 | 2,020 | 5.375% due 12/15/21 | 2,500 | 2,603 | ||
Alliance Data Systems Corp. | CIT Group, Inc. | ||||||
6.375% due 04/01/20 (Þ) | 2,000 | 2,033 | 3.875% due 02/19/19 | 750 | 771 | ||
Series 144a | CNH Industrial Capital LLC | ||||||
5.875% due 11/01/21 (Þ) | 500 | 518 | 4.375% due 04/05/22 | 500 | 510 | ||
Ally Financial, Inc. | Series WI | ||||||
3.250% due 11/05/18 | 1,750 | 1,768 | 3.375% due 07/15/19 | 1,000 | 1,014 | ||
AMC Entertainment Holdings, Inc. | CNO Financial Group, Inc. | ||||||
5.875% due 02/15/22 | 3,000 | 3,134 | 4.500% due 05/30/20 | 2,000 | 2,070 | ||
American Airlines Group, Inc. | CommScope, Inc. | ||||||
4.625% due 03/01/20 (Þ) | 1,000 | 1,018 | 5.000% due 06/15/21 (Þ) | 3,000 | 3,082 | ||
American Equity Investment Life | Crown Americas LLC / Crown Americas | ||||||
Holding Co. | Capital Corp. V | ||||||
6.625% due 07/15/21 | 1,000 | 1,039 | 4.250% due 09/30/26 (Þ) | 200 | 196 | ||
Amsted Industries, Inc. | CSC Holdings LLC | ||||||
5.000% due 03/15/22 (Þ) | 2,250 | 2,306 | 5.500% due 04/15/27 (Þ) | 375 | 388 | ||
Amsurg Corp. | DaVita HealthCare Partners, Inc. | ||||||
5.625% due 07/15/22 | 1,500 | 1,547 | 5.750% due 08/15/22 | 2,250 | 2,332 | ||
Diamond 1 Finance Corp. / Diamond 2 | |||||||
Anixter, Inc. | Finance Corp | ||||||
5.625% due 05/01/19 | 1,000 | 1,045 | 5.875% due 06/15/21 (Þ) | 200 | 212 | ||
Antero Resources Corp. | 7.125% due 06/15/24 (Þ) | 225 | 249 | ||||
5.375% due 11/01/21 | 1,750 | 1,807 | |||||
Edgewell Personal Care Co. | |||||||
Arconic, Inc. | 4.700% due 05/19/21 | 1,500 | 1,590 | ||||
5.400% due 04/15/21 | 1,750 | 1,877 | |||||
Envision Healthcare Corp. | |||||||
Ashland, Inc. | 6.250% due 12/01/24 (Þ) | 106 | 112 | ||||
4.750% due 08/15/22 | 1,000 | 1,043 | |||||
Avis Budget Car Rental LLC / Avis | Equinix, Inc. | ||||||
Budget Finance, Inc. | 5.375% due 01/01/22 | 1,000 | 1,058 | ||||
6.375% due 04/01/24 (Þ) | 200 | 200 | Fidelity & Guaranty Life Holdings, Inc. | ||||
B&G Foods, Inc. | 6.375% due 04/01/21 (Þ) | 2,250 | 2,306 | ||||
4.625% due 06/01/21 | 2,000 | 2,037 | Fresenius Medical Care US Finance II, | ||||
Inc. | |||||||
Ball Corp. | 4.125% due 10/15/20 (Þ) | 1,500 | 1,541 | ||||
4.375% due 12/15/20 | 750 | 789 | |||||
Gartner, Inc. | |||||||
BWAY Holding Co. |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 345
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
5.125% due 04/01/25 (Þ) | 138 | 143 | Morgan Stanley | ||||
Genesys Telecommunications | 2.003% due 01/24/19 (Ê) | 600 | 605 | ||||
Laboratories, Inc./Greeneden Lux 3 | MPT Operating Partnership, LP / MPT | ||||||
Sarl/Greeneden US Ho | Finance Corp. | ||||||
10.000% due 11/30/24 (Þ) | 145 | 161 | 6.375% due 02/15/22 | 1,250 | 1,292 | ||
GLP Capital, LP / GLP Financing II, Inc. | NAI Entertainment Holdings / NAI | ||||||
4.875% due 11/01/20 | 700 | 746 | Entertainment Holdings Finance | ||||
4.375% due 04/15/21 | 1,000 | 1,048 | Corp. | ||||
Graphic Packaging International, Inc. | 5.000% due 08/01/18 (Þ) | 500 | 504 | ||||
4.750% due 04/15/21 | 500 | 523 | Netflix, Inc. | ||||
Gray Television, Inc. | 5.375% due 02/01/21 | 750 | 803 | ||||
5.125% due 10/15/24 (Þ) | 450 | 451 | 5.500% due 02/15/22 | 1,500 | 1,605 | ||
HCA, Inc. | Nexstar Escrow Corp. | ||||||
3.750% due 03/15/19 | 1,999 | 511 | 5.625% due 08/01/24 (Þ) | 200 | 205 | ||
Nielsen Finance LLC / Nielsen Finance | |||||||
Hologic, Inc. | Co. | ||||||
5.250% due 07/15/22 (Þ) | 2,250 | 2,371 | 5.000% due 04/15/22 (Þ) | 2,650 | 2,727 | ||
Hospitality Properties Trust | Nuance Communications, Inc. | ||||||
4.250% due 02/15/21 | 1,000 | 1,042 | 5.375% due 08/15/20 (Þ) | 300 | 306 | ||
HRG Group, Inc. | Orbital ATK, Inc. | ||||||
7.875% due 07/15/19 | 2,000 | 2,080 | Series WI | ||||
Hughes Satellite Systems Corp. | 5.250% due 10/01/21 | 650 | 673 | ||||
6.500% due 06/15/19 | 1,000 | 1,081 | |||||
7.625% due 06/15/21 | 1,500 | 1,694 | Oshkosh Corp. | ||||
5.375% due 03/01/22 | 575 | 598 | |||||
Icahn Enterprises LP / Icahn Enterprises | Outfront Media Capital LLC / Outfront | ||||||
Finance Corp. | Media Capital Corp. | ||||||
6.250% due 02/01/22 (Þ) | 159 | 165 | |||||
6.750% due 02/01/24 (Þ) | 159 | 166 | Series WI | ||||
5.250% due 02/15/22 | 2,000 | 2,078 | |||||
Infor US, Inc. | Pattern Energy Group, Inc. | ||||||
5.750% due 08/15/20 (Þ) | 500 | 522 | 5.875% due 02/01/24 (Þ) | 34 | 35 | ||
International Game Technology PLC | Penn National Gaming, Inc. | ||||||
5.625% due 02/15/20 (Þ) | 2,000 | 2,103 | 5.625% due 01/15/27 (Þ) | 34 | 34 | ||
Iron Mountain US Holdings, Inc. | Pinnacle Entertainment, Inc. | ||||||
5.375% due 06/01/26 (Þ) | 125 | 127 | 5.625% due 05/01/24 (Þ) | 449 | 464 | ||
Iron Mountain, Inc. | Provident Funding Associates, LP / PFG | ||||||
6.000% due 10/01/20 (Þ) | 500 | 523 | Finance Corp. | ||||
4.375% due 06/01/21 (Þ) | 1,625 | 1,686 | 6.750% due 06/15/21 (Þ) | 857 | 878 | ||
Isle of Capri Casinos, Inc. | Rackspace Hosting, Inc. | ||||||
5.875% due 03/15/21 | 450 | 465 | 1.000% due 10/26/23 (Ê) | 499 | 502 | ||
Kinetic Concepts, Inc. / KCI USA, Inc. | Radio One, Inc. | ||||||
7.875% due 02/15/21 (Þ) | 1,400 | 1,493 | 7.375% due 04/15/22 (Þ) | 275 | 287 | ||
Krayton Polymars LLC / Krayton | Regal Entertainment Group | ||||||
Polymars Capital Co. | 5.750% due 03/15/22 | 2,000 | 2,090 | ||||
7.000% due 04/15/25 (Þ) | 35 | 37 | |||||
Reynolds Group Issuer, Inc. | |||||||
Ladder Capital Finance Holdings LLLP | 4.658% due 07/15/21 (Ê)(Þ) | 650 | 665 | ||||
5.250% due 03/15/22 (Þ) | 2,500 | 2,566 | Reynolds Group Issuer, Inc. / Reynolds | ||||
Leidos Holdings, Inc. | Group Issuer LLC / Reynolds Group | ||||||
4.450% due 12/01/20 | 700 | 729 | Issuer Lu | ||||
Level 3 Financing, Inc. | 5.750% due 10/15/20 | 1,000 | 1,030 | ||||
Series WI | SBA Communications Corp. | ||||||
6.125% due 01/15/21 | 350 | 362 | Series WI | ||||
Level 3 Financing, Inc. Term Loan B | 4.875% due 07/15/22 | 875 | 901 | ||||
3.304% due 02/22/24 (Ê) | 1,500 | 1,504 | Scientific Games International, Inc. | ||||
LifePoint Health, Inc. | 5.037% due 10/01/21 (Ê) | 2,087 | 2,117 | ||||
5.500% due 12/01/21 | 2,475 | 2,555 | Service Corp. International | ||||
Lions Gate Entertainment Corp. | 5.375% due 01/15/22 | 1,750 | 1,805 | ||||
5.875% due 11/01/24 (Þ) | 39 | 40 | Silgan Holdings, Inc. | ||||
MGM Resorts International | 5.000% due 04/01/20 | 280 | 284 | ||||
5.250% due 03/31/20 | 2,500 | 2,643 | Sinclair Television Group, Inc. |
See accompanying notes which are an integral part of the financial statements.
346 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
5.375% due 04/01/21 | 2,000 | 2,058 | 4.289% due 05/15/21 (Ê)(Þ) | 1,250 | 1,277 | ||
Sirius XM Radio, Inc. | Cogeco Communications, Inc. | ||||||
4.250% due 05/15/20 (Þ) | 750 | 758 | 4.875% due 05/01/20 (Þ) | 2,000 | 2,048 | ||
Six Flags Entertainment Corp. | Commonwealth Bank of Australia | ||||||
5.250% due 01/15/21 (Þ) | 2,000 | 2,053 | Series REGS | ||||
Starwood Property Trust, Inc. | 1.674% due 11/07/19 (Ê) | 600 | 604 | ||||
5.000% due 12/15/21 (Þ) | 2,000 | 2,085 | Delta 2 Lux Sarl Covenant-Lite Term | ||||
Station Casinos LLC | Loan B3 | ||||||
7.500% due 03/01/21 | 750 | 781 | 4.750% due 07/30/21 (Ê) | 750 | 751 | ||
FMG Resources Pty, Ltd. Covenant-Lite | |||||||
Symantec Corp. | 1st Lien Term Loan B | ||||||
4.200% due 09/15/20 | 2,000 | 2,082 | 3.750% due 06/30/19 | 863 | 869 | ||
Tech Data Corp. | Four Seasons Hotels, Ltd. 1st Lien Term | ||||||
3.700% due 02/15/22 | 1,000 | 1,015 | Loan B | ||||
TEGNA, Inc. | 1.000% due 06/27/20 (Ê)(v) | 499 | 504 | ||||
5.125% due 10/15/19 | 600 | 615 | Harbourview CLO VII, Ltd. | ||||
4.875% due 09/15/21 (Þ) | 1,900 | 1,962 | Series 2014-7A Class E | ||||
Tenet Healthcare Corp. | 6.039% due 11/18/26 (Ê)(Þ) | 250 | 236 | ||||
6.000% due 10/01/20 | 2,250 | 2,368 | Hyperion Insurance Group, Ltd. Term | ||||
Tesoro Logistics, LP / Tesoro Logistics | Loan B | ||||||
Finance Corp. | 5.564% due 04/29/22 (Ê) | 523 | 524 | ||||
Series WI | IHO Verwaltungs GmbH | ||||||
5.500% due 10/15/19 | 250 | 265 | 4.125% due 09/15/21 (Þ) | 1,300 | 1,318 | ||
T-Mobile USA, Inc. | International Automotive Components | ||||||
4.000% due 04/15/22 | 2,700 | 2,762 | Group SA | ||||
TransDigm, Inc. | 9.125% due 06/01/18 (Þ) | 475 | 462 | ||||
5.500% due 10/15/20 | 1,500 | 1,534 | Lincoln Finance, Ltd. | ||||
7.375% due 04/15/21 (Þ) | 1,000 | 1,066 | |||||
TreeHouse Foods, Inc. | Mallinckrodt International Finance SA / | ||||||
4.875% due 03/15/22 | 895 | 926 | Mallinckrodt CB LLC | ||||
Tribune Media Co. | 5.625% due 10/15/23 (Þ) | 375 | 358 | ||||
Series WI | Mallinckrodt International Finance SA | ||||||
5.875% due 07/15/22 | 2,500 | 2,625 | 1st Lien Term Loan B | ||||
United Continental Holdings, Inc. | 3.814% due 09/24/24 | 1,000 | 999 | ||||
6.000% due 12/01/20 | 1,889 | 2,026 | MidOcean Credit CLO III | ||||
Vertiv Group Corp. | Series 2014-3A Class E | ||||||
9.250% due 10/15/24 (Þ) | 200 | 215 | 5.947% due 07/21/26 (Ê)(Þ) | 275 | 262 | ||
ViaSat, Inc. | Mondelez International Holdings | ||||||
6.875% due 06/15/20 | 2,625 | 2,677 | Netherlands BV | ||||
2.000% due 10/28/21 (Þ) | 175 | 170 | |||||
Wells Fargo & Co. | |||||||
1.613% due 04/22/19 (Ê) | 600 | 602 | Mood Media Corp. Term Loan | ||||
7.000% due 05/01/19 (Ê) | 373 | 372 | |||||
WESCO Distribution, Inc. | Numericable US LLC 1st Lien Term | ||||||
5.375% due 06/15/24 | 98 | 101 | Loan B11 | ||||
Yum! Brands, Inc. | 3.907% due 06/22/25 | 1,000 | 995 | ||||
3.750% due 11/01/21 | 600 | 611 | Open Text Corp. | ||||
Zayo Group LLC / Zayo Capital Co. | 5.875% due 06/01/26 (Þ) | 78 | 83 | ||||
5.750% due 01/15/27 (Þ) | 85 | 90 | Park Aerospace Holdings, Ltd. | ||||
150,061 | 5.250% due 08/15/22 (Þ) | 2,562 | 2,707 | ||||
International Debt - 4.1% | 5.500% due 02/15/24 (Þ) | 39 | 41 | ||||
1011778 B.C. Unlimited Liability Co. | Rexel SA | ||||||
1st Lien Term Loan B | 5.250% due 06/15/20 (Þ) | 330 | 338 | ||||
3.302% due 02/17/24 (Ê) | 2,494 | 2,494 | |||||
1011778 BC ULC / New Red Finance, | Ritchie Bros. Auctioneers, Inc. | ||||||
Inc. | 5.375% due 01/15/25 (Þ) | 250 | 258 | ||||
4.625% due 01/15/22 (Þ) | 2,850 | 2,937 | SS&C Technologies, Inc. 1st Lien Term | ||||
AerCap Ireland Capital DAC / AerCap | Loan B2 | ||||||
Global Aviation Trust | 3.307% due 07/08/22 | 44 | 44 | ||||
4.250% due 07/01/20 | 750 | 784 | Travelport Finance (Luxembourg) Sarl | ||||
Ardagh Packaging Finance PLC / | 1st Lien Term Loan C | ||||||
Ardagh Holdings USA, Inc. | 4.265% due 09/02/21 (Ê) | 497 | 501 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 347
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Valeant Pharmaceuticals International, | Avolon Holdings, Ltd. Term Loan B | ||||||
Inc. | 3.743% due 01/13/22 | 125 | 127 | ||||
6.500% due 03/15/22 (Þ) | 173 | 177 | Bass Pro Group LLC 1st Lien Term | ||||
7.000% due 03/15/24 (Þ) | 161 | 164 | Loan B | ||||
Videotron, Ltd. | 6.147% due 12/16/23 (Ê) | 475 | 462 | ||||
5.000% due 07/15/22 | 2,000 | 2,120 | BBB Industries LLC 1st Lien Term Loan | ||||
Wind Acquisition Finance SA | 6.034% due 11/03/21 (Ê) | 500 | 501 | ||||
4.750% due 07/15/20 (Þ) | 575 | 584 | Berry Plastics Corp. 1st Lien Term | ||||
Zais CLO 5, Ltd. | Loan I | ||||||
Series 2016-2A Class C | 3.493% due 10/01/22 (Ê) | 1,598 | 1,608 | ||||
5.216% due 10/15/28 (Ê)(Þ) | 300 | 303 | BioScrip, Inc. Term Loan B | ||||
6.500% due 07/31/20 (Ê)(Þ) | 484 | 475 | |||||
26,350 | BJ's Wholesale Club, Inc. 2nd Lien Term | ||||||
Loan Agreements - 16.6% | Loan | ||||||
ABG Intermediate Holdings 2 LLC 1st | 8.525% due 01/27/25 (Ê) | 250 | 250 | ||||
Lien Term Loan B1 | |||||||
5.052% due 05/27/21 (Ê) | 248 | 249 | BJ's Wholesale Club, Inc. Term Loan | ||||
4.750% due 01/27/24 (Ê) | 500 | 498 | |||||
Acrisure LLC Term Loan B | Brickman Group, Ltd. LLC (The) 1st | ||||||
6.147% due 10/28/23 | 375 | 376 | Lien Term Loan B | ||||
Active Network, Inc. 1st Lien Term Loan | 4.000% due 12/18/20 (Ê) | 1,296 | 1,300 | ||||
6.000% due 11/15/20 | 249 | 250 | BWAY Holding Co. Term Loan B | ||||
Advanced Disposal Services, Inc. Term | 4.233% due 03/22/24 | 1,250 | 1,242 | ||||
Loan B3 | |||||||
3.500% due 11/10/23 (Ê) | 871 | 878 | Cable One, Inc. Term Loan B | ||||
3.430% due 04/05/24 | 500 | 503 | |||||
Air Methods Corp. Term Loan B | Caesars Entertainment Corp. 1st Lien | ||||||
4.572% due 04/05/24 | 1,250 | 1,249 | Term Loan B | ||||
Alliant Holdings Intermediate LLC Term | 7.000% due 10/11/20 (Ê) | 1,990 | 1,993 | ||||
Loan B | Capital Automotive LP 1st Lien Term | ||||||
4.416% due 08/14/22 (Ê) | 364 | 365 | Loan | ||||
Altice Financing SA Term Loan B | 4.000% due 03/17/24 | 250 | 252 | ||||
3.908% due 06/21/25 | 1,000 | 999 | Capital Automotive LP 2nd Lien Term | ||||
American Airlines, Inc. Term Loan B | Loan | ||||||
2.993% due 06/26/20 | 250 | 250 | 7.151% due 03/24/25 (Ê) | 250 | 255 | ||
3.276% due 04/28/23 (Ê) | 248 | 248 | Casablanca US Holdings, Inc. 1st Lien | ||||
Term Loan | |||||||
AP Gaming I LLC 1st Lien Term Loan B | 5.538% due 02/21/24 (Ê) | 1,500 | 1,493 | ||||
9.250% due 12/20/20 (Ê) | 495 | 498 | |||||
Arbor Pharmaceuticals, Inc. Term Loan | CBS Radio, Inc. Term Loan B | ||||||
B | 4.500% due 10/17/23 (Ê) | 1,136 | 1,144 | ||||
6.147% due 06/28/23 | 495 | 504 | CCC Information Services, Inc. 1st Lien | ||||
Term Loan | |||||||
Artic Glacier USA, Inc. Term Loan B | 4.040% due 03/29/24 | 750 | 746 | ||||
5.250% due 03/14/24 | 1,000 | 1,012 | |||||
CH Hold Corp. 1st Lien Term Loan | |||||||
AssuredPartners, Inc. Term Loan B | 1.500% due 02/01/24 (Ê) | 40 | 40 | ||||
5.292% due 10/21/22 (Ê) | 998 | 1,003 | |||||
CH Hold Corp. 1st Lien Term Loan B | |||||||
Asurion LLC 1st Lien Term Loan B4 | 4.000% due 02/01/24 (Ê) | 402 | 404 | ||||
4.250% due 08/04/22 (Ê) | 980 | 986 | |||||
CH Hold Corp. 2nd Lien Term Loan B | |||||||
Asurion LLC Term Loan B5 | 8.285% due 02/01/25 (Ê) | 125 | 127 | ||||
4.750% due 11/01/23 (Ê) | 123 | 124 | Change Healthcare Holdings LLC 1st | ||||
Atotech BV Term Loan B1 | Lien Term Loan B | ||||||
4.146% due 01/24/24 | 375 | 377 | 3.750% due 03/01/24 (Ê) | 1,000 | 1,003 | ||
Avantor Performance Materials LLC 1st | Charcoal Holdings LLC 1st Lien Term | ||||||
Lien Term Loan | Loan | ||||||
5.000% due 03/07/24 | 240 | 242 | 0.057% due 07/03/23 | 996 | 1,002 | ||
Avantor Performance Materials LLC 2nd | Charter Communications Operating LLC | ||||||
Lien Term Loan | 1st Lien Term Loan H | ||||||
9.250% due 03/07/25 | 250 | 251 | 2.997% due 01/15/22 (Ê) | 1,490 | 1,495 | ||
Avantor Performance Materials LLC | Checkout Holding Corp. Covenant-Lite | ||||||
Term Loan | 1st Lien Term Loan B | ||||||
9.250% due 03/08/24 | 10 | 10 | 4.500% due 04/09/21 (Ê) | 244 | 223 | ||
Avaya, Inc. Term Loan B7 | Chemours Co. (The) Term Loan B | ||||||
6.314% due 05/29/20 (Ê) | 1,733 | 1,445 | 3.490% due 05/12/22 | 257 | 259 |
See accompanying notes which are an integral part of the financial statements.
348 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
CHS/Community Health Systems, Inc. | ESH Hospitality, Inc. Term Loan B | ||||||
1st Lien Term Loan G | 3.539% due 08/30/23 (Ê) | 498 | 500 | ||||
3.750% due 12/31/19 (Ê) | 973 | 969 | First Data Corp. Term Loan | ||||
Cision, Inc. Term Loan B | 3.775% due 07/10/22 (Ê) | 1,750 | 1,759 | ||||
7.000% due 05/12/23 | 994 | 1,000 | |||||
Commercial Barge Line Co. 1st Lien | FPC Holdings, Inc. 1st Lien Term Loan | ||||||
Term Loan | 5.250% due 11/27/19 (Ê) | 607 | 579 | ||||
9.786% due 11/12/20 (Ê) | 741 | 672 | Gartner, Inc. Term Loan B | ||||
Community Health Systems, Inc. Term | 2.992% due 03/14/24 | 1,000 | 1,007 | ||||
Loan | Generac Power Systems, Inc. 1st Lien | ||||||
4.000% due 01/27/21 (Ê) | 1,000 | 993 | Term Loan B | ||||
3.784% due 05/31/23 (Ê) | 625 | 630 | |||||
Constellation Brands, Inc. Term Loan B | GENEX Services, Inc. 1st Lien Term | ||||||
0.047% due 11/14/23 | 998 | 1,004 | |||||
Constellis Holdings LLC 2nd Lien Term | Loan | ||||||
Loan | 5.250% due 05/30/21 (Ê) | 249 | 251 | ||||
10.156% due 04/21/25 (Ê) | 125 | 123 | Getty Images, Inc. 1st Lien Term Loan B | ||||
4.750% due 10/18/19 (Ê) | 250 | 221 | |||||
Constellis Holdings LLC Term Loan B | Go Daddy Operating Co. LLC 1st Lien | ||||||
6.155% due 04/13/24 | 500 | 494 | |||||
ConvergeOne Holdings Corp. 1st Lien | Term Loan | ||||||
3.451% due 02/06/24 (Ê) | 750 | 753 | |||||
Term Loan | Grifols Worldwide Operations USA Inc. | ||||||
6.531% due 06/17/20 | 200 | 200 | |||||
ConvergeOne Holdings Corp. Covenant- | 1st Lien Term Loan B | ||||||
3.285% due 01/31/25 (Ê) | 711 | 712 | |||||
Lite 1st Lien Term Loan | Gruden Acquisition, Inc. 1st Lien Term | ||||||
6.405% due 06/17/20 (Ê) | 193 | 193 | Loan | ||||
ConvergeOne Holdings Corp. Term Loan | 5.802% due 08/18/22 (Ê) | 703 | 680 | ||||
6.531% due 06/17/20 | 50 | 50 | Harland Clarke Holdings Corp. Term | ||||
Cortes NP Acquisition Corp. Term Loan | Loan B6 | ||||||
B | 6.646% due 02/02/22 | 1,184 | 1,185 | ||||
5.000% due 11/30/23 | 989 | 995 | HCA, Inc. Term Loan B8 | ||||
CPI Acquisition, Inc. Term Loan B | 3.243% due 02/15/24 | 500 | 2,018 | ||||
5.834% due 08/17/22 (Ê) | 478 | 445 | Hilton Worldwide Finance LLC Term | ||||
Creative Artists Agency LLC 1st Lien | Loan B2 | ||||||
Term Loan B | 3.034% due 10/25/23 (Ê) | 750 | 756 | ||||
4.539% due 02/13/24 (Ê) | 499 | 505 | Intrawest Operations Group LLC Term | ||||
Crosby US Acquisition Corp. 1st Lien | Loan | ||||||
Term Loan | 4.500% due 12/09/20 (Ê) | 998 | 1,003 | ||||
4.054% due 11/22/20 (Ê) | 249 | 231 | KRATON Polymers LLC 1st Lien Term | ||||
Cvent, Inc. 1st Lien Term Loan B | Loan B | ||||||
6.064% due 11/29/23 (Ê) | 500 | 503 | 5.015% due 01/06/22 (Ê) | 867 | 879 | ||
Dell International LLC 1st Lien Term | Landry's, Inc. 1st Lien Term Loan | ||||||
Loan B | 5.750% due 09/22/23 (Ê) | 741 | 741 | ||||
3.609% due 09/07/23 (Ê) | 2,491 | 2,500 | Lannett Co., Inc. Term Loan A | ||||
DigitalGlobe, Inc. 1st Lien Term Loan B | 5.750% due 11/25/20 (Ê) | 240 | 238 | ||||
3.530% due 12/22/23 (Ê) | 499 | 501 | |||||
EagleView Technology Corp. 1st Lien | Las Vegas Sands LLC Term Loan B | ||||||
2.990% due 03/29/24 | 998 | 998 | |||||
Term Loan | Learfield Communications, Inc. 1st Lien | ||||||
5.280% due 07/15/22 (Ê) | 124 | 124 | |||||
EagleView Technology Corp. 2nd Lien | Term Loan | ||||||
4.250% due 11/17/23 | 374 | 377 | |||||
Term Loan | Lions Gate Enterntainment, Inc. 1st Lien | ||||||
9.250% due 09/28/23 (Ê) | 250 | 248 | Term Loan | ||||
Eastman Kodak Co. Term Loan | 3.766% due 10/12/23 | 200 | 201 | ||||
7.250% due 09/03/19 (Ê) | 1,250 | 1,252 | MacDermid, Inc. Term Loan B4 | ||||
Eldorado Resorts LLC Term Loan B | 5.000% due 06/07/23 (Ê) | 500 | 502 | ||||
3.197% due 03/13/24 | 1,000 | 998 | |||||
EnergySolutions LLC 1st Lien Term | Match Group, Inc. Term Loan B1 | ||||||
Loan B | 4.276% due 10/27/22 (Ê) | 250 | 253 | ||||
6.814% due 05/29/20 (Ê) | 802 | 810 | MCC Iowa LLC Term Loan H | ||||
3.250% due 01/29/21 (Ê) | 374 | 375 | |||||
Envision Healthcare Corp. Term Loan B | Mergermarket USA, Inc. 1st Lien Term | ||||||
4.000% due 11/17/23 (Ê) | 1,496 | 1,510 | Loan | ||||
Epic Health Services, Inc. 1st Term Loan | 4.500% due 02/04/21 (Ê) | 486 | 486 | ||||
5.290% due 03/28/24 | 250 | 250 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 349
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
MGM Growth Properties Operating | RentPath, Inc. 1st Lien Term Loan | ||||||
Partnership, LP Term Loan B | 6.250% due 12/17/21 (Ê) | 499 | 492 | ||||
3.528% due 04/25/23 (Ê) | 496 | 497 | Reynolds Group Holdings, Inc. 1st Lien | ||||
Mission Broadcasting, Inc. 1st Lien Term | Term Loan B | ||||||
Loan B | 4.032% due 02/05/23 (Ê) | 1,994 | 2,004 | ||||
3.767% due 01/17/24 (Ê) | 67 | 68 | RHP Hotel Properties, LP / RHP | ||||
MRI Software LLC Term Loan | Finance Corp. Term Loan B | ||||||
5.250% due 06/18/21 | 362 | 358 | 5.000% due 04/15/21 | 1,000 | 1,019 | ||
0.500% due 09/29/23 | 136 | 135 | Riverbed Technology, Inc. Term Loan | ||||
Navistar, Inc. 1st Lien Term Loan B | 4.250% due 04/27/22 (Ê) | 495 | 494 | ||||
5.038% due 08/07/20 (Ê) | 500 | 506 | RPI Finance Trust Term Loan B6 | ||||
Nexstar Broadcasting, Inc. 1st Lien Term | 3.152% due 03/07/23 | 524 | 525 | ||||
Loan B | SCS Holdings, Inc. Term Loan | ||||||
3.767% due 01/17/24 (Ê) | 217 | 219 | 5.250% due 10/30/22 (Ê) | 241 | 243 | ||
Nielsen Finance LLC Term Loan B4 | SeaWorld Parks & Entertainment, Inc. | ||||||
2.990% due 10/24/23 | 500 | 502 | Term Loan B2 | ||||
NN, Inc. Term Loan | 4.248% due 05/14/20 (Ê) | 745 | 745 | ||||
4.733% due 03/22/21 | 1,000 | 999 | SESAC Holdco II LLC 2nd Lien Term | ||||
NPC International, Inc. 1st Lien Term | Loan | ||||||
Loan | 8.303% due 02/10/25 | 250 | 250 | ||||
4.500% due 03/17/24 | 900 | 907 | Signode Industrial Group US, Inc. Term | ||||
Optiv, Inc. 1st Lien Term Loan | Loan B | ||||||
4.285% due 02/01/24 (Ê) | 375 | 374 | 4.000% due 05/01/21 (Ê) | 566 | 568 | ||
Penn National Gaming, Inc. 1st Lien | SIRVA Worldwide, Inc. Term Loan | ||||||
Term Loan B | 7.656% due 11/14/22 | 499 | 496 | ||||
3.541% due 01/19/24 (Ê) | 375 | 377 | Solarwinds Holdings, Inc. 1st Lien Term | ||||
Pharmaceutical Product Development | Loan | ||||||
LLC Term Loan B | 4.553% due 02/05/23 (Ê) | 1,881 | 1,890 | ||||
0.043% due 08/18/22 (Ê) | 374 | 376 | Solera LLC Term Loan B | ||||
Pilot Travel Centers LLC 1st Lien Term | 5.750% due 03/04/23 (Ê) | 496 | 500 | ||||
Loan B | Spectrum Brands, Inc. 1st Lien Term | ||||||
3.036% due 05/25/23 (Ê) | 1,347 | 1,357 | Loan B | ||||
Pinnacle Foods Finance LLC / Pinnacle | 3.152% due 06/23/22 (Ê) | 1,249 | 1,256 | ||||
Foods Finance Corp. Term Loan B | Sprint Communications, Inc. 1st Lien | ||||||
4.875% due 05/01/21 | 2,250 | 2,301 | Term Loan B | ||||
Playa Resorts Holding BV Term Loan B | 3.500% due 01/13/24 | 3,500 | 3,502 | ||||
4.040% due 04/05/24 | 500 | 500 | SS&C Technologies, Inc. 1st Lien Term | ||||
Portillo's Holdings, LLC Covenant-Lite | Loan B1 | ||||||
1st Lien Term Loan | 3.350% due 07/08/22 (Ê) | 456 | 459 | ||||
4.785% due 08/01/21 (Ê) | 249 | 251 | Station Casinos LLC 1st Lien Term | ||||
Pre-Paid Legal Services, Inc. 2nd Lien | Loan B | ||||||
Term Loan | 3.534% due 06/08/23 (Ê) | 499 | 498 | ||||
9.750% due 07/01/20 (Ê) | 250 | 249 | Steak n Shake Operations, Inc. Term | ||||
Prime Security Services Borrower LLC | Loan | ||||||
Term Loan B1 | 4.750% due 03/19/21 (Ê) | 460 | 459 | ||||
4.250% due 05/02/22 (Ê) | 996 | 1,006 | Sterigenics-Nordion Holdings LLC Term | ||||
Project Ruby Ultimate Parent Corp. 1st | Loan B | ||||||
Lien Term Loan B | 4.149% due 03/23/22 | 998 | 996 | ||||
4.784% due 02/09/24 | 998 | 1,003 | Talbots, Inc. (The) 1st Lien Term Loan | ||||
Prospect Medical Holdings, Inc. 1st Lien | 5.500% due 03/17/20 (Ê) | 235 | 209 | ||||
Term Loan B | TCH-2 Holdings LLC 1st Lien Term | ||||||
7.000% due 06/30/22 | 221 | 224 | Loan | ||||
Prowler Acquisition Corp. 1St Lien Term | 5.536% due 05/12/21 (Ê) | 248 | 250 | ||||
Loan | Tempo Acquisition LLC Term Loan | ||||||
5.672% due 01/28/20 (Ê) | 249 | 199 | 3.995% due 03/15/24 | 250 | 250 | ||
Quest Software US Holdings, Inc. 1st | TerraForm AP Acquisition Holdings LLC | ||||||
Lien Term Loan | �� | Term Loan B | |||||
7.035% due 10/31/22 (Ê) | 998 | 1,014 | 5.500% due 06/26/22 (Ê) | 746 | 754 | ||
Quincy Newspapers, Inc. Term Loan B | The Nature's Bounty Co. 1st Lien Term | ||||||
5.000% due 11/02/22 (Ê) | 234 | 236 | Loan B | ||||
Radio One, Inc. 1st Lien Term Loan B | 4.537% due 05/05/23 (Ê) | 246 | 247 | ||||
5.152% due 04/05/23 (Ê) | 500 | 497 | TKC Holdings, Inc. 1st Lien Term Loan |
See accompanying notes which are an integral part of the financial statements.
350 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.785% due 02/01/23 (Ê) | 500 | 505 | Series 2006-4 Class AJ | ||||
TKC Holdings, Inc. 2nd Lien Term Loan | 5.695% due 07/10/46 | 317 | 316 | ||||
8.523% due 02/01/24 (Ê) | 250 | 252 | Series 2007-3 Class AJ | ||||
TMS International Corp. Term Loan B | 5.730% due 06/10/49 | 517 | 520 | ||||
4.500% due 10/16/20 (Ê) | 248 | 250 | Bear Stearns ALT-A Trust | ||||
Trader Corp. Term Loan B | Series 2005-8 Class 21A1 | ||||||
4.290% due 09/28/23 | 500 | 501 | 2.824% due 10/25/35 (Ê) | 281 | 267 | ||
Trans Union LLC Term 1st Lien Loan B2 | Citigroup Commercial Mortgage Trust | ||||||
3.493% due 04/09/21 (Ê) | 499 | 503 | Series 2006-C4 Class C | ||||
Transdigm Group, Inc. 1st Lien Term | 5.993% due 03/15/49 | 250 | 248 | ||||
Loan F | Series 2012-GC8 Class D | ||||||
3.780% due 06/09/23 (Ê) | 997 | 996 | 5.039% due 09/10/45 (Þ) | 200 | 190 | ||
Tribune Co. Term Loan B | Series 2014-GC21 Class D | ||||||
4.039% due 01/27/24 (Ê) | 201 | 202 | 4.996% due 05/10/47 (Þ) | 345 | 293 | ||
Tribune Media Co. 1st Lien Term Loan B | COBALT CMBS Commercial Mortgage | ||||||
3.750% due 12/27/20 (Ê) | 16 | 16 | Trust | ||||
TruGreen, LP 1st Lien Term Loan | 5.990% due 05/15/46 | 538 | 546 | ||||
6.500% due 04/13/23 (Ê) | 822 | 827 | Series 2007-C2 Class AJFX | ||||
UFC Holdings LLC 1st Lien Term Loan | 5.568% due 04/15/47 | 210 | 212 | ||||
5.000% due 08/18/23 (Ê) | 249 | 250 | Commercial Mortgage Trust | ||||
UFC Holdings LLC 2nd Lien Term Loan | Series 2007-C9 Class D | ||||||
8.500% due 08/18/24 | 215 | 218 | 6.007% due 12/10/49 | 76 | 76 | ||
United Airlines, Inc. Term Loan B | Series 2012-LC4 Class E | ||||||
3.421% due 03/21/24 | 1,000 | 1,002 | 4.250% due 12/10/44 (Þ) | 454 | 354 | ||
USIC Holdings, Inc. 1st Lien Term Loan | Series 2014-CCRE18 | ||||||
5.170% due 11/21/23 | 249 | 251 | 3.600% due 07/15/47 | 110 | 67 | ||
Valeant Pharmaceuticals International, | Series 2014-CR18 Class D | ||||||
Inc. Term Loan B | 4.896% due 07/15/47 (Þ) | 139 | 122 | ||||
5.500% due 04/02/22 (Ê) | 1,030 | 1,036 | |||||
Countrywide Alternative Loan Trust | |||||||
Varsity Brands, Inc. 1st Lien Term Loan | |||||||
5.000% due 12/11/21 | 248 | 249 | Series 2006-OA10 Class 4A1 | ||||
0.411% due 08/25/46 (Ê) | 1,006 | 907 | |||||
Veresen Midstream, Ltd. Term Loan B2 | |||||||
4.606% due 03/31/22 (Ê) | 248 | 250 | CSAIL Commercial Mortgage Trust | ||||
Virgin Media Bristol LLC 1st Lien Term | Series 2015-C1 Class D | ||||||
Loan I | 3.944% due 04/15/50 (Þ) | 500 | 421 | ||||
3.906% due 01/31/25 (Ê) | 750 | 753 | DBUBS Mortgage Trust | ||||
Vouvray US Finance LLC Term Loan B | Series 2011-LC3A Class D | ||||||
4.176% due 01/27/24 | 500 | 499 | 5.345% due 08/10/44 (Þ) | 800 | 834 | ||
Wastequip LLC Term Loan | Deutsche ALT-A Securities, Inc. | ||||||
5.500% due 08/09/19 (Ê) | 236 | 236 | Alternate Loan Trust | ||||
William Morris Endeavor Entertainment | Series 2007-OA3 Class A1 | ||||||
LLC 1st Lien Term Loan | 0.918% due 07/25/47 (Ê) | 417 | 369 | ||||
5.290% due 05/06/21 (Ê) | 1,868 | 1,877 | Fannie Mae | ||||
World Endurance Holdings 1st Lien | 4.000% due 2046 | 2,000 | 2,108 | ||||
Term Loan | 30 Year TBA(Ï) | ||||||
5.401% due 06/26/21 (Ê) | 497 | 495 | 3.000% | 20,000 | 19,938 | ||
105,821 | 3.500% | 25,000 | 25,656 | ||||
Mortgage-Backed Securities - 22.6% | 4.000% | 7,000 | 7,372 | ||||
Alternative Loan Trust | 4.500% | 5,000 | 5,380 | ||||
Series 2005-27 Class 1A1 | Series 2013-304 Class C22 | ||||||
1.424% due 08/25/35 (Ê) | 531 | 408 | Interest Only STRIP | ||||
Series 2005-59 Class 1A1 | 3.500% due 12/15/42 | 5,034 | 1,000 | ||||
0.862% due 11/20/35 (Ê) | 462 | 420 | Series 2015-345 Class C13 | ||||
American Home Mortgage Investment | Interest Only STRIP | ||||||
Trust | 3.500% due 08/15/45 | 11,958 | 2,307 | ||||
Series 2007-1 Class GA1C | Series 2015-C03 Class 1M2 | ||||||
0.360% due 05/25/47 (Ê) | 1,296 | 888 | 5.436% due 07/25/25 (Ê) | 517 | 574 | ||
Banc of America Commercial Mortgage | |||||||
Trust | Series 2015-C04 Class 1M2 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 351
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
6.136% due 04/25/28 (Ê) | 550 | 628 | Interest Only STRIP | ||||||
Series 2016-C03 Class 1M2 | 5.788% due 02/15/41 (Ê) | 1,495 | 251 | ||||||
5.739% due 10/25/28 (Ê) | 581 | 665 | Series 2013-27 Class PI | ||||||
Series 2016-C03 Class 2M2 | Interest Only STRIP | ||||||||
6.189% due 10/25/28 (Ê) | 545 | 633 | 3.000% due 12/25/41 | 10,043 | 795 | ||||
Fannie Mae Connecticut Avenue | Series 2013-35 Class IP | ||||||||
Securities | Interest Only STRIP | ||||||||
Series 2014-C03 Class 1M2 | 3.000% due 06/25/42 | 1,309 | 109 | ||||||
3.524% due 07/25/24 (Ê) | 597 | 628 | |||||||
Series 2013-41 Class SP | |||||||||
Series 2016-C01 Class 1B | Interest Only STRIP | ||||||||
12.274% due 08/25/28 (Ê) | 628 | 818 | 5.218% due 06/25/40 (Ê) | 1,712 | 183 | ||||
Series 2016-C02 Class 1B | Series 2013-4182 Class PI | ||||||||
12.688% due 09/25/28 (Ê) | 610 | 816 | |||||||
Interest Only STRIP | |||||||||
Series 2016-C02 Class 1M2 | 3.000% due 12/15/41 | 8,939 | 732 | ||||||
6.438% due 09/25/28 (Ê) | 780 | 910 | |||||||
Series 2015-4425 Class IO | |||||||||
Series 2016-C05 Class 2M2 | |||||||||
4.944% due 01/25/29 (Ê) | 553 | 603 | Interest Only STRIP | ||||||
4.000% due 01/15/45 | 1,080 | 200 | |||||||
Series 2016-C06 Class 1M2 | |||||||||
4.775% due 04/25/29 (Ê) | 789 | 857 | Series 2015-4510 Class HI | ||||||
Interest Only STRIP | |||||||||
Series 2016-C07 Class 2M2 | 3.000% due 03/15/40 | 3,184 | 298 | ||||||
4.885% due 04/25/29 (Ê) | 785 | 844 | |||||||
Series 2016-24 Class CI | |||||||||
Series 2017-C01 Class 1B1 | Interest Only STRIP | ||||||||
6.516% due 07/25/29 (Ê) | 767 | 819 | 4.000% due 02/25/46 | 709 | 104 | ||||
Series 2017-C02 Class 2B1 | |||||||||
6.477% due 09/25/29 (Ê) | 294 | 301 | Series 2016-70 Class QI | ||||||
Interest Only STRIP | |||||||||
Series 2017-C02 Class 2M2 | 3.500% due 10/25/46 | 3,086 | 452 | ||||||
4.593% due 09/25/29 (Ê) | 892 | 923 | |||||||
Fannie Mae REMICS | Series 2016-97 Class KI | ||||||||
Interest Only STRIP | |||||||||
Series 2010-35 Class SG | 3.000% due 06/25/40 | 1,780 | 203 | ||||||
Interest Only STRIP | |||||||||
5.418% due 04/25/40 (Ê) | 763 | 153 | Series 2016-98 Class QI | ||||||
Interest Only STRIP | |||||||||
Series 2010-140 Class GS | 3.500% due 02/25/46 | 2,676 | 398 | ||||||
Interest Only STRIP | |||||||||
5.222% due 07/25/39 (Ê) | 953 | 100 | Series 2016-102 Class JI | ||||||
Interest Only STRIP | |||||||||
Series 2011-59 Class BI | 3.500% due 02/25/46 | 526 | 80 | ||||||
Interest Only STRIP | |||||||||
6.000% due 08/25/40 | 1,100 | 101 | Series 2016-104 Class NI | ||||||
Interest Only STRIP | |||||||||
Series 2011-98 Class AI | 5.000% due 04/25/38 | 2,916 | 103 | ||||||
Interest Only STRIP | |||||||||
3.500% due 11/25/37 | 2,771 | 155 | Series 2016-4560 Class PI | ||||||
Interest Only STRIP | |||||||||
Series 2011-101 Class SA | 3.500% due 05/15/45 | 781 | 117 | ||||||
Interest Only STRIP | |||||||||
5.122% due 10/25/41 (Ê) | 1,059 | 154 | Series 2017-2 Class KI | ||||||
Interest Only STRIP | |||||||||
Series 2012-36 Class SN | 4.000% due 02/25/47 | 2,690 | 480 | ||||||
Interest Only STRIP | |||||||||
5.672% due 04/25/42 (Ê) | 567 | 96 | Series 2017-7 Class JI | ||||||
Interest Only STRIP | |||||||||
Series 2012-49 Class QI | 4.000% due 02/25/47 | 1,107 | 196 | ||||||
Interest Only STRIP | |||||||||
4.500% due 12/25/40 | 1,943 | 273 | Series 2017-15 Class LI | ||||||
Interest Only STRIP | |||||||||
Series 2012-129 Class IJ | 4.000% due 06/25/46 | 1,088 | 183 | ||||||
Interest Only STRIP | |||||||||
3.500% due 12/25/32 | 786 | 120 | Series 2017-4658 Class CI | ||||||
Interest Only STRIP | |||||||||
Series 2012-147 Class AI | 3.500% due 07/15/40 | 2,425 | 287 | ||||||
Interest Only STRIP | |||||||||
3.000% due 10/25/27 | 1,487 | 140 | Series 2017-4666 Class AI | ||||||
Interest Only STRIP | |||||||||
Series 2012-4074 Class KS | 3.000% due 09/15/35 | 6,367 | 511 |
See accompanying notes which are an integral part of the financial statements.
352 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Freddie Mac REMICS | Interest Only STRIP | ||||||||
Series 2011-3904 Class NI | 3.500% due 11/15/42 | 2,660 | 335 | ||||||
Interest Only STRIP | Series 2017-4663 Class TI | ||||||||
3.500% due 08/15/26 | 1,069 | 103 | Interest Only STRIP | ||||||
Series 2012-3998 Class KI | 3.500% due 10/15/42 | 1,575 | 192 | ||||||
Interest Only STRIP | Freddie Mac Structured Agency Credit | ||||||||
3.000% due 11/15/26 | 3,009 | 262 | Risk Debt Notes | ||||||
Series 2012-4073 Class AS | Series 2015-DNA2 Class B | ||||||||
8.541% due 12/25/27 (Ê) | 700 | 790 | |||||||
Interest Only STRIP | |||||||||
5.512% due 08/15/38 (Ê) | 847 | 85 | Series 2015-DNA3 Class B | ||||||
9.875% due 04/25/28 (Ê) | 775 | 914 | |||||||
Series 2012-4099 Class BI | |||||||||
Interest Only STRIP | Series 2015-DNA3 Class M3 | ||||||||
3.500% due 06/15/39 | 1,096 | 110 | 5.133% due 04/25/28 (Ê) | 583 | 665 | ||||
Series 2012-4127 Class PI | Series 2015-HQ1 Class B | ||||||||
11.274% due 03/25/25 (Ê) | 610 | 782 | |||||||
Interest Only STRIP | |||||||||
4.500% due 07/15/42 | 1,784 | 340 | Series 2016-DNA1 Class M3 | ||||||
5.986% due 07/25/28 (Ê) | 500 | 577 | |||||||
Series 2014-4299 Class JI | |||||||||
Series 2016-DNA3 Class M3 | |||||||||
Interest Only STRIP | 5.756% due 12/25/28 (Ê) | 746 | 843 | ||||||
4.000% due 07/15/43 | 1,412 | 205 | |||||||
Series 2016-HQA1 Class M3 | |||||||||
Series 2014-4386 Class IL | 6.792% due 09/25/28 (Ê) | 250 | 301 | ||||||
Interest Only STRIP | |||||||||
4.000% due 12/15/43 | 1,109 | 187 | Series 2016-HQA2 Class M3 | ||||||
5.674% due 11/25/28 (Ê) | 583 | 666 | |||||||
Series 2014-4389 Class IA | |||||||||
Interest Only STRIP | Series 2016-HQA3 Class M3 | ||||||||
4.000% due 09/15/44 | 543 | 101 | 4.374% due 03/25/29 (Ê) | 869 | 920 | ||||
Series 2016-HQA4 Class M3 | |||||||||
Series 2014-4413 Class HI | 4.427% due 04/25/29 (Ê) | 797 | 848 | ||||||
Interest Only STRIP | |||||||||
3.500% due 03/15/40 | 1,562 | 170 | Series 2017-DNA1 Class B1 | ||||||
5.729% due 07/25/29 (Ê) | 816 | 827 | |||||||
Series 2014-4421 Class PS | Series 2017-DNA2 Class B1 | ||||||||
Interest Only STRIP | 6.144% due 10/25/29 (Ê) | 895 | 913 | ||||||
5.642% due 02/15/44 (Ê) | 787 | 110 | |||||||
Series 2017-HQA1 Class M2 | |||||||||
Series 2015-4475 Class CI | 4.320% due 08/25/29 (Ê) | 875 | 897 | ||||||
Interest Only STRIP | |||||||||
3.500% due 01/15/44 | 1,642 | 242 | Ginnie Mae | ||||||
Series 2009-121 Class UI | |||||||||
Series 2015-4530 Class HI | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.000% due 12/20/39 | 170 | 35 | ||||||
4.000% due 11/15/45 | 551 | 87 | |||||||
Series 2010-35 Class QI | |||||||||
Series 2015-4531 Class PI | Interest Only STRIP | ||||||||
Interest Only STRIP | 4.500% due 03/20/40 | 764 | 153 | ||||||
3.500% due 05/15/43 | 778 | 110 | |||||||
Series 2010-62 Class SD | |||||||||
Series 2016-4550 Class AI | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.512% due 05/20/40 (Ê) | 1,663 | 301 | ||||||
3.000% due 10/15/40 | 1,697 | 216 | |||||||
Series 2010-101 Class SH | |||||||||
Series 2016-4601 Class IC | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.943% due 08/16/40 (Ê) | 455 | 90 | ||||||
4.000% due 12/15/45 | 841 | 156 | |||||||
Series 2010-134 Class ES | |||||||||
Series 2016-4621 Class QI | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.007% due 11/20/39 (Ê) | 3,076 | 299 | ||||||
3.500% due 10/15/46 | 1,547 | 210 | |||||||
Series 2011-22 Class PS | |||||||||
Series 2016-4629 Class GI | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.007% due 07/20/40 (Ê) | 2,586 | 265 | ||||||
3.500% due 11/15/45 | 1,720 | 254 | |||||||
Series 2011-151 Class SC | |||||||||
Series 2016-4635 Class PI | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.983% due 07/16/40 (Ê) | 770 | 84 | ||||||
4.000% due 12/15/46 | 804 | 146 | |||||||
Series 2017-4663 Class KI | Series 2011-168 Class IO |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 353
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Interest Only STRIP | Series 2015-35 Class AI | ||||||||
5.500% due 10/16/37 | 684 | 54 | Interest Only STRIP | ||||||
Series 2012-51 Class GI | 5.000% due 03/16/45 | 987 | 195 | ||||||
Interest Only STRIP | Series 2015-50 Class IO | ||||||||
3.500% due 07/20/40 | 1,146 | 133 | Interest Only STRIP | ||||||
Series 2012-122 Class PI | 4.000% due 04/20/45 | 1,934 | 297 | ||||||
Interest Only STRIP | Series 2015-60 Class PI | ||||||||
4.000% due 04/20/42 | 326 | 50 | Interest Only STRIP | ||||||
Series 2013-6 Class AI | 4.000% due 04/20/45 | 1,272 | 247 | ||||||
Interest Only STRIP | Series 2015-62 Class IL | ||||||||
3.500% due 08/20/39 | 1,057 | 149 | Interest Only STRIP | ||||||
Series 2013-18 Class GI | 3.500% due 02/16/42 | 2,229 | 295 | ||||||
Interest Only STRIP | Series 2015-89 Class LI | ||||||||
3.500% due 05/20/41 | 795 | 94 | Interest Only STRIP | ||||||
Series 2013-34 Class HI | 5.000% due 12/20/44 | 992 | 199 | ||||||
Interest Only STRIP | Series 2015-96 Class NI | ||||||||
4.500% due 03/20/43 | 515 | 91 | Interest Only STRIP | ||||||
Series 2013-77 Class UI | 3.500% due 01/20/39 | 1,624 | 175 | ||||||
Interest Only STRIP | Series 2015-105 Class LI | ||||||||
4.500% due 03/20/41 | 2,989 | 516 | Interest Only STRIP | ||||||
Series 2013-99 Class AS | 5.000% due 10/20/39 | 559 | 114 | ||||||
Interest Only STRIP | Series 2015-106 Class CI | ||||||||
5.311% due 06/20/43 (Ê) | 433 | 86 | Interest Only STRIP | ||||||
Series 2013-182 Class SP | 4.000% due 05/20/45 | 1,541 | 252 | ||||||
Interest Only STRIP | Series 2015-167 Class BI | ||||||||
5.961% due 12/20/43 (Ê) | 421 | 79 | Interest Only STRIP | ||||||
Series 2014-69 Class IG | 4.500% due 04/16/45 | 967 | 220 | ||||||
Interest Only STRIP | Series 2015-H01 Class BI | ||||||||
5.000% due 09/20/43 | 3,998 | 736 | Interest Only STRIP | ||||||
Series 2014-132 Class IO | 1.567% due 01/20/65 | 6,898 | 509 | ||||||
Interest Only STRIP | Series 2015-H08 Class BI | ||||||||
5.000% due 09/20/44 | 772 | 156 | Interest Only STRIP | ||||||
Series 2014-161 Class HI | 2.082% due 03/20/65 | 1,089 | 109 | ||||||
Interest Only STRIP | Series 2016-123 Class IQ | ||||||||
4.500% due 06/20/44 | 685 | 113 | Interest Only STRIP | ||||||
Series 2014-H06 Class BI | 5.000% due 07/20/39 | 5,757 | 511 | ||||||
Interest Only STRIP | Series 2016-136 Class YI | ||||||||
1.482% due 02/20/64 | 2,391 | 154 | Interest Only STRIP | ||||||
Series 2014-H08 Class BI | 3.500% due 03/20/45 | 537 | 72 | ||||||
Interest Only STRIP | Series 2016-138 Class DI | ||||||||
1.454% due 04/20/64 | 3,017 | 255 | Interest Only STRIP | ||||||
Series 2014-H08 Class CI | 4.000% due 10/20/46 | 642 | 108 | ||||||
Interest Only STRIP | Series 2016-154 Class AI | ||||||||
1.485% due 03/20/64 | 3,292 | 229 | Interest Only STRIP | ||||||
Series 2014-H09 Class AI | 5.000% due 02/20/41 | 1,671 | 100 | ||||||
Interest Only STRIP | Series 2016-154 Class IB | ||||||||
1.437% due 01/20/64 | 2,438 | 144 | Interest Only STRIP | ||||||
Series 2014-H13 Class BI | 5.000% due 11/20/39 | 812 | 169 | ||||||
Interest Only STRIP | Series 2016-156 Class PI | ||||||||
1.593% due 05/20/64 | 3,570 | 229 | Interest Only STRIP | ||||||
Series 2014-H23 Class BI | 3.500% due 11/20/46 | 1,366 | 160 | ||||||
Interest Only STRIP | Series 2016-167 Class SB | ||||||||
1.564% due 11/20/64 | 3,984 | 381 | Interest Only STRIP | ||||||
Series 2014-H25 Class BI | 5.022% due 04/20/38 (Ê) | 8,145 | 427 | ||||||
Interest Only STRIP | Series 2016-168 Class AI | ||||||||
1.646% due 12/20/64 | 3,266 | 286 |
See accompanying notes which are an integral part of the financial statements.
354 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
5.000% due 07/20/45 | 4,471 | 497 | 4.500% due 11/16/42 | 654 | 147 | ||||
Series 2016-H04 Class KI | Series 2012-H10 Class AI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
1.875% due 02/20/66 | 812 | 73 | 1.219% due 12/20/61 | 7,246 | 340 | ||||
Series 2016-H06 Class AI | Series 2012-H11 Class FI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
2.068% due 02/20/66 | 1,868 | 212 | 1.221% due 02/20/62 | 17,707 | 976 | ||||
Series 2016-H14 Class AI | Series 2012-H29 Class CI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
2.467% due 06/20/66 | 3,771 | 491 | 1.409% due 02/20/62 | 5,974 | 390 | ||||
Series 2016-H17 Class DI | Series 2013-23 Class IK | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
1.999% due 07/20/66 | 2,899 | 361 | 3.000% due 09/20/37 | 1,785 | 191 | ||||
Series 2016-H22 Class IO | Series 2013-H15 Class CI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
1.838% due 10/20/66 | 2,529 | 265 | 1.772% due 07/20/63 | 3,312 | 214 | ||||
Series 2016-H24 Class JI | Series 2014-20 Class SQ | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
2.721% due 11/20/66 | 1,554 | 244 | 5.122% due 07/20/43 (Ê) | 2,106 | 317 | ||||
Series 2017-5 Class IO | Series 2014-30 Class IO | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
5.000% due 01/20/47 | 1,545 | 345 | 5.500% due 02/20/44 | 1,475 | 333 | ||||
Series 2017-11 Class PI | Series 2014-44 Class IA | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
4.000% due 12/20/46 | 1,715 | 248 | 3.500% due 05/20/28 | 981 | 97 | ||||
Series 2017-17 Class DI | Series 2014-139 Class NI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
3.500% due 09/20/43 | 2,359 | 302 | 3.500% due 08/20/28 | 4,116 | 351 | ||||
Series 2017-42 Class IC | Series 2015-111 Class IJ | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
4.500% due 08/20/41 | 3,722 | 743 | 3.500% due 08/20/45 | 1,830 | 281 | ||||
Series 2017-H03 Class DI | Series 2015-162 Class BI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
2.195% due 12/20/66 | 4,370 | 609 | 4.000% due 11/20/40 | 2,528 | 408 | ||||
Series 2017-H06 Class EI | Series 2015-H09 Class BI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
1.572% due 02/20/67 | 2,383 | 178 | 1.684% due 03/20/65 | 453 | 39 | ||||
Series 2017-H08 Class DI | Series 2015-H10 Class CI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
2.377% due 02/20/67 | 1,336 | 204 | 1.797% due 04/20/65 | 1,111 | 109 | ||||
Series 2017-H09 Class HI | Series 2015-H15 Class JI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
1.823% due 03/20/67 | 1,824 | 227 | 1.936% due 06/20/65 | 775 | 82 | ||||
Series 2017-H09 Class IO | Series 2015-H18 Class IA | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
1.774% due 04/20/67 | 4,975 | 542 | 1.816% due 06/20/65 | 607 | 48 | ||||
Ginnie Mae REMICS | Series 2015-H24 Class BI | ||||||||
Class IA | Interest Only STRIP | ||||||||
Interest Only STRIP | 1.604% due 08/20/65 | 1,455 | 94 | ||||||
4.000% due 01/16/43 | 1,572 | 241 | Series 2015-H25 Class AI | ||||||
Series 2011-H16 Class FI | Interest Only STRIP | ||||||||
Interest Only STRIP | 1.614% due 09/20/65 | 1,091 | 92 | ||||||
1.034% due 07/20/61 | 1,989 | 95 | Series 2015-H26 Class GI | ||||||
Series 2012-129 Class IO | Interest Only STRIP | ||||||||
1.780% due 10/20/65 | 609 | 59 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 355
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Series 2016-129 Class PI | Series 2014-H06 Class TR | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
4.500% due 06/20/45 | 1,196 | 240 | 1.429% due 03/20/64 | 3,490 | 197 | |||
Series 2016-147 Class BI | Series 2014-H11 Class GI | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
4.000% due 10/20/46 | 512 | 110 | 1.480% due 06/20/64 | 3,196 | 266 | |||
Series 2016-H16 Class DI | Series 2015-60 Class IP | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
2.194% due 06/20/66 (Ê) | 1,948 | 251 | 4.000% due 04/20/45 | 1,730 | 352 | |||
Series 2016-H18 Class QI | Series 2015-80 Class IA | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
1.975% due 06/20/66 | 2,413 | 322 | 4.500% due 06/20/45 | 601 | 117 | |||
Series 2016-H24 Class CI | Series 2015-89 Class IP | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
1.703% due 10/20/66 | 5,021 | 528 | 4.000% due 02/20/45 | 1,093 | 183 | |||
Series 2017-6 Class DI | Series 2015-149 Class KI | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
3.500% due 01/20/44 | 1,441 | 158 | 4.000% due 10/20/45 | 823 | 124 | |||
Series 2017-17 Class EI | Series 2015-H03 Class DI | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
4.000% due 09/20/44 | 3,658 | 452 | 1.884% due 01/20/65 | 2,846 | 290 | |||
Series 2017-38 Class DI | Series 2016-27 Class IB | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
5.000% due 03/16/47 | 1,018 | 204 | 4.000% due 11/20/45 | 2,070 | 357 | |||
Series 2017-H03 Class EI | Series 2016-37 Class IW | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
2.373% due 01/20/67 | 1,825 | 286 | 4.500% due 02/20/46 | 2,314 | 462 | |||
Series 2017-H06 Class BI | Series 2016-47 Class CI | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
2.256% due 02/20/67 | 4,210 | 573 | 4.000% due 09/20/45 | 821 | 116 | |||
Series 2017-H06 Class MI | Series 2016-49 Class IO | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
2.169% due 02/20/67 | 2,905 | 419 | 4.500% due 11/16/45 | 785 | 162 | |||
Series 2017-H08 Class NI | Series 2016-77 Class SC | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
2.147% due 03/20/67 | 5,533 | 740 | 5.574% due 10/20/45 (Ê) | 775 | 148 | |||
Government National Mortgage | Series 2016-104 Class GI | |||||||
Association | Interest Only STRIP | |||||||
Series 2010-9 Class UI | 4.500% due 01/20/46 | 1,473 | 186 | |||||
Interest Only STRIP | Series 2016-H12 Class AI | |||||||
5.000% due 01/20/40 | 10,143 | 2,136 | Interest Only STRIP | |||||
Series 2010-35 Class DI | 1.643% due 07/20/65 | 3,638 | 363 | |||||
Interest Only STRIP | Series 2016-H20 Class BI | |||||||
4.500% due 03/20/40 | 1,947 | 397 | Interest Only STRIP | |||||
Series 2010-50 Class QS | 1.562% due 09/20/66 | 3,102 | 277 | |||||
Interest Only STRIP | Series 2016-H23 Class NI | |||||||
6.018% due 12/20/38 (Ê) | 3,448 | 267 | Interest Only STRIP | |||||
Series 2011-17 Class S | 2.830% due 10/20/66 | 3,337 | 542 | |||||
Interest Only STRIP | GS Mortgage Securities Corp. II | |||||||
5.072% due 02/20/41 (Ê) | 1,878 | 300 | Series 2013-GC10 Class E | |||||
Series 2013-H24 Class AI | 4.557% due 02/10/46 (Þ) | 508 | 399 | |||||
Interest Only STRIP | GS Mortgage Securities Trust | |||||||
1.472% due 09/20/63 | 4,626 | 274 | Series 2011-GC5 Class D | |||||
Series 2014-60 Class SE | 5.400% due 08/10/44 (Þ) | 107 | 108 | |||||
Interest Only STRIP | Series 2013-GC12 Class D | |||||||
5.574% due 04/20/44 (Ê) | 728 | 124 | 4.615% due 06/10/46 (Þ) | 164 | 145 |
See accompanying notes which are an integral part of the financial statements.
356 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Series 2013-GC16 Class D | Series 2011-C3 Class E | |||||||
5.493% due 11/10/46 (Þ) | 140 | 135 | 5.324% due 07/15/49 (Þ) | 93 | 93 | |||
Series 2014-GC18 Class D | Mortgage Repurchase Agreement | |||||||
4.948% due 01/10/47 (Þ) | 200 | 171 | Financing Trust | |||||
JPMBB Commercial Mortgage Securities | Series 2016-5 Class A | |||||||
Trust | 1.170% due 06/10/19 (Ê)(Þ) | 339 | 339 | |||||
Series 2013-C12 Class D | Station Place Securitization Trust | |||||||
4.086% due 07/15/45 | 167 | 150 | Series 2017-1 Class A | |||||
Series 2013-C14 Class F | 1.673% due 02/25/49 (Ê)(Þ) | 311 | 311 | |||||
3.598% due 08/15/46 (Þ) | 650 | 450 | Structured Asset Mortgage Investments | |||||
Series 2013-C15 Class D | II Trust | |||||||
5.214% due 11/15/45 (Þ) | 345 | 331 | Series 2006-AR7 Class A1BG | |||||
0.288% due 08/25/36 (Ê) | 428 | 369 | ||||||
Series 2013-C17 Class D | UBS-Barclays Commercial Mortgage | |||||||
4.886% due 01/15/47 (Þ) | 210 | 196 | Trust | |||||
Series 2014-C25 Class D | Series 2012-C2 Class E | |||||||
4.098% due 11/15/47 (Þ) | 259 | 203 | 4.886% due 05/10/63 (Þ) | 155 | 150 | |||
Series 2014-C26 Class D | Series 2012-C2 Class F | |||||||
3.926% due 01/15/48 (Þ) | 888 | 736 | 5.000% due 05/10/63 (Å) | 221 | 163 | |||
JPMorgan Chase Commercial Mortgage | Wachovia Bank Commercial Mortgage | |||||||
Securities Corp. | Trust | |||||||
Series 2012-C8 Class E | 5.413% due 12/15/43 | 92 | 93 | |||||
4.816% due 10/15/45 (Þ) | 200 | 186 | Washington Mutual Mortgage Pass | |||||
Series 2012-LC9 Class E | Through Certificates | |||||||
4.415% due 12/15/47 (Þ) | 550 | 510 | Series 2005-AR19 Class A1B3 | |||||
JPMorgan Chase Commercial Mortgage | 0.875% due 12/25/45 (Ê) | 94 | 89 | |||||
Securities Trust | Washington Mutual Mortgage Pass- | |||||||
Series 2011-C3 Class E | Through CertificatesTrust | |||||||
5.801% due 02/15/46 (Þ) | 200 | 197 | Series 2005-AR1 Class A2B | |||||
Series 2011-C5 Class D | 1.392% due 01/25/45 (Ê) | 70 | 64 | |||||
5.562% due 08/15/46 (Þ) | 108 | 109 | Wells Fargo Commercial Mortgage Trust | |||||
Series 2012-C6 Class E | Series 2012-LC5 Class D | |||||||
5.365% due 05/15/45 (Þ) | 500 | 448 | 4.935% due 10/15/45 (Þ) | 250 | 239 | |||
Series 2013-C13 Class D | Series 2013-LC12 Class D | |||||||
4.189% due 01/15/46 (Þ) | 500 | 469 | 4.434% due 07/15/46 (Þ) | 492 | 444 | |||
Series 2013-C16 Class D | Series 2014-LC16 Class D | |||||||
4.975% due 12/15/46 (Þ) | 163 | 156 | 3.938% due 08/15/50 (Þ) | 262 | 219 | |||
Merrill Lynch Mortgage Trust | WFRBS Commercial Mortgage Trust | |||||||
Series 2008-C1 Class D | Series 2011-C2 Class D | |||||||
6.475% due 02/12/51 (Å) | 175 | 175 | 5.602% due 02/15/44 (Þ) | 387 | 404 | |||
Morgan Stanley Bank of America Merrill | Series 2011-C4 Class F | |||||||
Lynch Trust | 5.000% due 06/15/44 (Þ) | 998 | 814 | |||||
Series 2014-C17 Class D | Series 2012-C10 Class D | |||||||
4.855% due 08/15/47 (Þ) | 200 | 170 | 4.452% due 12/15/45 (Þ) | 795 | 695 | |||
Series 2014-C18 Class D | Series 2014-C19 Class D | |||||||
3.389% due 10/15/47 (Þ) | 347 | 251 | 4.234% due 03/15/47 (Þ) | 81 | 69 | |||
Morgan Stanley Bank of America | ||||||||
Mortgage Trust | 144,735 | |||||||
Series 2013-C7 Class D | Non-US Bonds - 0.1% | |||||||
4.261% due 02/15/46 (Þ) | 60 | 55 | Holland Mortgage Backed (Hermes) | |||||
Series 2013-C11 Class C | XVIII BV | |||||||
4.371% due 08/15/46 | 154 | 139 | Series 2012-18 Class A2 | |||||
1.286% due 09/18/44 (Ê) | EUR | 384 | 420 | |||||
Morgan Stanley Capital I Trust | ||||||||
Series 2007-HQ11 Class AJ | ||||||||
5.508% due 02/12/44 | 138 | 135 | Total Long-Term Investments | |||||
Series 2008-T29 Class B | (cost $425,897) | 428,481 | ||||||
6.275% due 01/11/43 (Å) | 350 | 357 | ||||||
Series 2008-T29 Class D | ||||||||
6.275% due 01/11/43 (Þ) | 337 | 334 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 357
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||
Principal | Fair | Principal | Fair | |||||||||
Amount ($) | Value | Amount ($) | Value | |||||||||
or Shares | $ | or Shares | $ | |||||||||
Options Purchased - 0.3% | United States 5 Year | |||||||||||
(Number of Contracts) | Treasury Note Futures | |||||||||||
Cross Currency Options | May 2017 118.00 Call (680) | USD | 80,240 | (ÿ) | 410 | |||||||
(EUR/GBP) | May 2017 116.25 Put (135) | USD | 15,694 | (ÿ) | 1 | |||||||
Dec 2017 0.87 Call (1) | EUR | 7,500 | (ÿ) | 132 | Jun 2017 116.25 Put (820) | USD | 95,325 | (ÿ) | 64 | |||
Cross Currency Options | Total Options Purchased | |||||||||||
(EUR/USD) | ||||||||||||
May 2017 1.08 Call (1) | EUR | 15,000 | (ÿ) | 160 | (cost $2,918) | 2,061 | ||||||
Cross Currency Options | ||||||||||||
(MXN/USD) | Short-Term Investments - 38.5% | |||||||||||
May 2017 19.00 Put (1) | USD | 3,200 | (ÿ) | 46 | ||||||||
Cross Currency Options | ABN AMRO Bank | |||||||||||
(NZD/USD) | 0.891% due 05/08/17 (ç)(~) | 2,500 | 2,500 | |||||||||
May 2017 0.76 Call (1) | NZD | 5,500 | (ÿ) | — | Agence Centrale Des Organismes De | |||||||
Cross Currency Options | Securite Sociale | |||||||||||
(TRY/USD) | 1.006% due 05/17/17 (ç)(~) | 3,000 | 2,999 | |||||||||
Jan 2018 3.65 Put (1) | USD | 2,000 | (ÿ) | 50 | Agence Centrale Organismes Securite | |||||||
Cross Currency Options | ||||||||||||
(USD/AUD) | Sociale | |||||||||||
May 2017 0.74 Put (1) | AUD | 6,875 | (ÿ) | 4 | 1.078% due 05/09/17 (ç)(~) | 1,500 | 1,500 | |||||
Cross Currency Options | Alliance Data Systems Corp. | |||||||||||
(USD/CNH) | 5.250% due 12/01/17 (Þ) | 300 | 304 | |||||||||
May 2017 7.50 Call (1) | USD | 400 | (ÿ) | — | ||||||||
Cross Currency Options | AMP Group Finance Services, Ltd. | |||||||||||
(USD/EUR) | 1.401% due 06/21/17 (ç)(~) | 500 | 499 | |||||||||
May 2017 1.07 Put (1) | EUR | 15,000 | (ÿ) | 2 | Australia Treasury Bills | |||||||
Cross Currency Options | ||||||||||||
(USD/JPY) | Series US11 | |||||||||||
Jun 2017 115.00 Call (1) | USD | 6,500 | (ÿ) | 20 | Zero coupon due 07/13/17 (~) | 2,500 | 2,494 | |||||
Oct 2017 108.00 Put (1) | USD | 8,000 | (ÿ) | 120 | Avaya, Inc. 1st Lien Term Loan B4 | |||||||
Cross Currency Options | 8.538% due 01/23/18 (Ê) | 389 | 399 | |||||||||
(USD/TRY) | ||||||||||||
Jan 2018 3.65 Put (1) | USD | 4,000 | (ÿ) | 99 | Bank of Montreal | |||||||
DAX Index | Series 3FRN | |||||||||||
Jul 2017 11,000.00 Put (65) | EUR | 3,575 | (ÿ) | 17 | 1.515% due 04/10/18 (Ê) | 600 | 600 | |||||
Fannie Mae Bonds | Bank of Queensland, Ltd. | |||||||||||
May 2017 95.48 Call (1) | USD | 8,000 | (ÿ) | 69 | 1.020% due 06/05/17 (ç)(~) | 4,000 | 3,996 | |||||
May 2017 102.38 Call (1) | USD | 24,000 | (ÿ) | 123 | BNG Bank | |||||||
Jun 2017 98.51 Call (1) | USD | 5,000 | (ÿ) | 70 | ||||||||
Jun 2017 98.63 Call (1) | USD | 5,000 | (ÿ) | 65 | 1.011% due 06/06/17 (ç)(~) | 3,500 | 3,496 | |||||
Jun 2017 98.76 Call (1) | USD | 5,000 | (ÿ) | 60 | BNP Paribas Fortis SA | |||||||
Jun 2017 99.25 Call (1) | USD | 34,000 | (ÿ) | 293 | (9.773)% due 03/07/18 (~) | EUR | 2,000 | 2,183 | ||||
May 2017 100.71 Put (1) | USD | 5,000 | (ÿ) | — | BPCE SA | |||||||
May 2017 100.83 Put (1) | USD | 5,000 | (ÿ) | — | (49.448)% due 06/15/17 (~) | EUR | 3,000 | 3,269 | ||||
May 2017 100.95 Put (1) | USD | 5,000 | (ÿ) | — | ||||||||
S&P 500 E-Mini Index | Caterpillar International Finance, Ltd. | |||||||||||
Futures | 1.118% due 05/22/17 (ç)(~) | 2,500 | 2,498 | |||||||||
May 2017 1,950.00 Put (1,660) | USD | 161,850 | (ÿ) | 29 | CIT Group, Inc. | |||||||
S&P 500 Index | 4.250% due 08/15/17 | 700 | 705 | |||||||||
May 2017 1,950.00 Put (440) | USD | 85,800 | (ÿ) | 14 | ||||||||
May 2017 2,275.00 Put (65) | USD | 14,788 | (ÿ) | 21 | 5.250% due 03/15/18 | 300 | 310 | |||||
May 2017 2,390.00 Put (66) | USD | 15,774 | (ÿ) | 141 | Cooperatieve Robobank UA | |||||||
Jun 2017 2,250.00 Put (34) | USD | 7,650 | (ÿ) | 26 | (24.214)% due 08/22/17 (~) | EUR | 1,300 | 1,418 | ||||
SPX Volatility Index | Credit Industriel et Commercial SA | |||||||||||
Jun 2017 20.00 Call (500) | USD | 1,000 | (ÿ) | 25 | 1.087% due 05/19/17 (ç)(~) | 1,500 | 1,499 | |||||
Swaptions | ||||||||||||
(Fund Receives/Fund | Credit Suisse AG | |||||||||||
Pays) | Series GMTN | |||||||||||
USD 3 Month LIBOR/USD | 1.862% due 01/29/18 (Ê) | 1,000 | 1,004 | |||||||||
2.152% | Danske Bank | |||||||||||
May 2017 Call (0) | USD | 7,952 | (ÿ) | — | ||||||||
(15.339)% due 07/21/17 (~) | EUR | 3,000 | 3,272 |
See accompanying notes which are an integral part of the financial statements.
358 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
DekaBank Deutsche Girozentrale | 0.672% due 07/06/17 (~) | 659 | 658 | |||||||
0.891% due 05/05/17 (ç)(~) | 3,000 | 3,000 | 0.295% due 07/13/17 (~) | 3,548 | 3,543 | |||||
DISH DBS Corp. | 3.510% due 07/20/17 (~) | 2,592 | 2,588 | |||||||
4.250% due 04/01/18 | 1,000 | 1,018 | ||||||||
0.139% due 11/02/17 (ç)(~) | 28 | 28 | ||||||||
DISH DBS Corporation | Total Short-Term Investments | |||||||||
4.625% due 07/15/17 | 600 | 602 | ||||||||
(cost $245,161) | 245,881 | |||||||||
DZ Privatbank SA | ||||||||||
1.121% due 08/31/17 (~) | 1,500 | 1,494 | Total Investments 105.9% | |||||||
ENGIE | ||||||||||
(22.171)% due 09/04/17 (~) | EUR | 3,500 | 3,819 | (identified cost $673,976) | 676,423 | |||||
European Bank for Reconstruction and | ||||||||||
Development | Other Assets and Liabilities, | |||||||||
1.260% due 09/11/17 (~) | 4,000 | 3,981 | Net - (5.9%) | (37,650 | ) | |||||
Finnish Treasury Bills | ||||||||||
1.153% due 10/18/17 (~) | 4,000 | 3,979 | Net Assets - 100.0% | 638,773 | ||||||
Iberdrola SA | ||||||||||
(99.806)% due 05/03/17 (~) | EUR | 3,000 | 3,268 | |||||||
(29.132)% due 07/31/17 (~) | EUR | 3,000 | 3,272 | |||||||
Instituto de Credito Oficial | ||||||||||
1.294% due 07/12/17 (~) | 4,000 | 3,989 | ||||||||
Italy Buoni Ordinari del Tesoro BOT | ||||||||||
(28.984)% due 07/31/17 (~) | EUR | 1,000 | 1,090 | |||||||
JPMorgan Chase & Co. | ||||||||||
1.706% due 04/25/18 (Ê) | 600 | 602 | ||||||||
LMA SA | ||||||||||
(9.700)% due 03/02/18 (~) | EUR | 3,000 | 3,268 | |||||||
Macquarie Bank, Ltd. | ||||||||||
1.117% due 05/09/17 (ç)(~) | 1,500 | 1,500 | ||||||||
Merck Financial Services GMBH | ||||||||||
1.198% due 06/19/17 (ç)(~) | 3,500 | 3,494 | ||||||||
Mizuho Bank, Ltd. | ||||||||||
1.088% due 05/10/17 (ç)(~) | 2,000 | 1,999 | ||||||||
Nationwide Building Society | ||||||||||
1.216% due 06/19/17 (ç)(~) | 1,500 | 1,498 | ||||||||
Schlumberger Finance BV | ||||||||||
0.893% due 05/10/17 (ç)(~) | 1,500 | 1,500 | ||||||||
Spain Letras del Tesoro | ||||||||||
(17.434)% due 10/13/17 (~) | EUR | 1,000 | 1,091 | |||||||
Sumitomo Trust and Banking Co., Ltd. | ||||||||||
(30.217)% due 07/27/17 (~) | EUR | 1,000 | 1,091 | |||||||
(21.164)% due 09/11/17 (~) | EUR | 1,500 | 1,637 | |||||||
Toyota Finance Australia, Ltd. | ||||||||||
1.264% due 08/10/17 (~) | 2,500 | 2,491 | ||||||||
U.S. Cash Management Fund | 150,235,758 | (8) | 150,265 | |||||||
UBS AG | ||||||||||
(19.136)% due 09/26/17 (~) | EUR | 3,500 | 3,817 | |||||||
United States Treasury Bills | ||||||||||
0.063% due 05/11/17 (ç)(~) | 152 | 152 | ||||||||
0.133% due 05/18/17 (ç)(~) | 202 | 202 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 359
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.1% | ||||||||||||
Merrill Lynch Mortgage Trust | 10/07/16 | 175,000 | 100.37 | 176 | 175 | |||||||
Morgan Stanley Capital I Trust | 11/09/16 | 350,000 | 101.79 | 356 | 357 | |||||||
UBS-Barclays Commercial Mortgage Trust | 11/17/16 | 221,000 | 69.71 | 154 | 163 | |||||||
695 |
For a description of restricted securities see note 8 in the Notes to Financial Statements. | |||||||
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Australia 10 Year Government Bond Futures | 574 | AUD | 74,459 | 06/17 | 1,788 | ||
S&P 500 E-Mini Index Futures | 72 | USD | 8,570 | 06/17 | 140 | ||
United States 10 Year Treasury Note Futures | 718 | USD | 90,266 | 06/17 | 1,037 | ||
Short Positions | |||||||
Canada 10 Year Government Bond Futures | 173 | CAD | 24,144 | 06/17 | (174 | ) | |
Euro-Bund Futures | 58 | EUR | 26 | 05/17 | 103 | ||
Euro-Bund Futures | 314 | EUR | 50,799 | 06/17 | (514 | ) | |
Euro-Schatz Futures | 320 | EUR | 2 | 05/17 | 47 | ||
Long Gilt Futures | 304 | GBP | 38,994 | 06/17 | (942 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 1,485 |
Options Written | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||
Cross Currency Options (EUR/GBP) | Call | 1 | 0.92 | EUR | 6,885 | 12/15/17 | (43 | ) | |
Cross Currency Options (EUR/GBP) | Put | 1 | 0.81 | EUR | 4,590 | 12/15/17 | (51 | ) | |
Cross Currency Options (GBP/EUR) | Put | 1 | 0.81 | EUR | 2,295 | 12/15/17 | (26 | ) | |
Cross Currency Options (JPY/EUR) | Put | 1 | 113.00 | EUR | 5,508 | 05/18/17 | (2 | ) | |
Cross Currency Options (MXN/USD) | Put | 1 | 18.00 | USD | 4,800 | 05/11/17 | (1 | ) | |
Cross Currency Options (MXN/USD) | Put | 1 | 19.00 | USD | 3,200 | 05/11/17 | (46 | ) | |
Cross Currency Options (NZD/USD) | Call | 1 | 0.74 | NZD | 8,010 | 05/08/17 | — | ||
Cross Currency Options (TRY/USD) | Put | 1 | 3.35 | USD | 2,000 | 01/15/18 | (11 | ) | |
Cross Currency Options (TRY/USD) | Put | 1 | 3.65 | USD | 2,000 | 01/15/18 | (50 | ) | |
Cross Currency Options (USD/AUD) | Put | 1 | 0.77 | AUD | 3,673 | 05/04/17 | (44 | ) | |
Cross Currency Options (USD/JPY) | Call | 1 | 118.00 | USD | 6,500 | 06/22/17 | (6 | ) | |
Cross Currency Options (USD/MXN) | Call | 1 | 24.50 | USD | 1,600 | 05/11/17 | — | ||
Cross Currency Options (USD/TRY) | Call | 1 | 6.00 | USD | 6,000 | 01/15/18 | (3 | ) | |
Cross Currency Options (USD/TRY) | Put | 1 | 3.35 | USD | 4,000 | 01/15/18 | (21 | ) | |
Fannie Mae Bonds | Call | 1 | 99.20 | USD | 5,000 | 06/06/17 | (45 | ) | |
Fannie Mae Bonds | Call | 1 | 99.32 | USD | 5,000 | 06/06/17 | (41 | ) | |
Fannie Mae Bonds | Call | 1 | 99.45 | USD | 5,000 | 06/06/17 | (37 | ) | |
Fannie Mae Bonds | Call | 1 | 99.88 | USD | 5,000 | 06/06/17 | (26 | ) | |
Fannie Mae Bonds | Call | 1 | 100.01 | USD | 5,000 | 06/06/17 | (23 | ) | |
Fannie Mae Bonds | Call | 1 | 100.13 | USD | 5,000 | 06/06/17 | (20 | ) | |
Fannie Mae Bonds | Put | 1 | 95.48 | USD | 8,000 | 05/04/17 | (3 | ) | |
Fannie Mae Bonds | Put | 1 | 99.56 | USD | 5,000 | 05/04/17 | — | ||
Fannie Mae Bonds | Put | 1 | 99.69 | USD | 5,000 | 05/04/17 | — | ||
Fannie Mae Bonds | Put | 1 | 99.81 | USD | 5,000 | 05/04/17 | — |
See accompanying notes which are an integral part of the financial statements.
360 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Options Written | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||
Fannie Mae Bonds | Put | 1 | 100.13 | USD | 5,000 | 05/04/17 | — | ||
Fannie Mae Bonds | Put | 1 | 100.26 | USD | 5,000 | 05/04/17 | — | ||
Fannie Mae Bonds | Put | 1 | 100.38 | USD | 5,000 | 05/04/17 | — | ||
Fannie Mae Bonds | Put | 1 | 102.38 | USD | 24,000 | 05/04/17 | (9 | ) | |
Fannie Mae Bonds | Put | 1 | 99.25 | USD | 34,000 | 06/06/17 | (126 | ) | |
S&P 500 E-Mini Index Futures | Put | 177 | 2,100.00 | USD | 9 | 05/19/17 | (7 | ) | |
S&P 500 E-Mini Index Futures | Put | 80 | 2,200.00 | USD | 4 | 05/19/17 | (6 | ) | |
S&P 500 Index | Put | 110 | 2,100.00 | USD | 11 | 05/19/17 | (8 | ) | |
United States 5 Year Treasury Note Futures | Call | 315 | 118.25 | USD | 315 | 05/26/17 | (142 | ) | |
United States 5 Year Treasury Note Futures | Call | 680 | 119.00 | USD | 680 | 05/26/17 | (106 | ) | |
Swaptions | |||||||||
(Fund Receives/Fund Pays) | |||||||||
USD 2.262%/USD 3 Month LIBOR | Call | 1 | 0.00 | USD | 3,976 | 05/30/17 | (26 | ) | |
Total Liability for Options Written (premiums received $1,853) | (929 | ) |
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||
Number of | Premiums | |||||
Contracts | Received | |||||
Outstanding October 31, 2016 | 97 | $ | 276 | |||
Opened | 2,717 | 5,039 | ||||
Closed | (563 | ) | (2,286 | ) | ||
Expired | (859 | ) | (1,176 | ) | ||
Outstanding April 30, 2017 | 1,392 | $ | 1,853 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of Montreal | USD | 6,218 | CAD | 8,501 | 05/15/17 | 10 | |
Bank of Montreal | CHF | 4,168 | USD | 4,169 | 05/15/17 | (23 | ) |
Bank of Montreal | CHF | 10,419 | USD | 10,423 | 05/15/17 | (56 | ) |
BNP Paribas | USD | 3,689 | AUD | 4,900 | 06/01/17 | (22 | ) |
Brown Brothers Harriman | USD | 7,605 | MXN | 146,105 | 07/27/17 | 49 | |
Commonwealth Bank of Australia | USD | 4,153 | AUD | 5,457 | 05/15/17 | (68 | ) |
Commonwealth Bank of Australia | USD | 6,230 | AUD | 8,186 | 05/15/17 | (102 | ) |
Commonwealth Bank of Australia | AUD | 13,643 | USD | 10,383 | 05/15/17 | 170 | |
Commonwealth Bank of Australia | NOK | 89,160 | USD | 10,403 | 05/15/17 | 17 | |
Goldman Sachs | EUR | 15,000 | USD | 16,428 | 06/01/17 | 66 | |
JPMorgan Chase | USD | 3,729 | AUD | 5,000 | 05/02/17 | 15 | |
JPMorgan Chase | USD | 5,452 | EUR | 5,000 | 05/03/17 | (5 | ) |
JPMorgan Chase | AUD | 7,283 | EUR | 5,000 | 05/03/17 | (7 | ) |
JPMorgan Chase | AUD | 2,000 | JPY | 165,572 | 06/01/17 | (10 | ) |
JPMorgan Chase | AUD | 5,000 | USD | 3,739 | 05/02/17 | (5 | ) |
JPMorgan Chase | EUR | 5,000 | AUD | 7,320 | 05/03/17 | 35 | |
JPMorgan Chase | EUR | 5,000 | USD | 5,470 | 05/03/17 | 23 | |
Morgan Stanley | USD | — | ZAR | 6 | 05/02/17 | — | |
Morgan Stanley | AUD | 3,000 | JPY | 250,140 | 06/01/17 | 1 | |
Morgan Stanley | CAD | 103 | USD | 76 | 06/01/17 | — | |
Morgan Stanley | EUR | 31,000 | USD | 33,798 | 06/01/17 | (17 | ) |
Morgan Stanley | JPY | 720,000 | USD | 6,611 | 06/01/17 | 146 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 361
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Morgan Stanley | SEK | 31 | EUR | 3 | 05/02/17 | — | |
Morgan Stanley | TRY | 540 | EUR | 137 | 06/01/17 | (2 | ) |
Morgan Stanley | ZAR | 4,000 | USD | 308 | 06/01/17 | 10 | |
Royal Bank of Canada | USD | 84 | NZD | 122 | 05/15/17 | — | |
Royal Bank of Canada | USD | 4,164 | NZD | 5,952 | 05/15/17 | (79 | ) |
Royal Bank of Canada | USD | 6,247 | NZD | 8,928 | 05/15/17 | (119 | ) |
Royal Bank of Canada | NZD | 8,928 | USD | 6,127 | 05/15/17 | (1 | ) |
State Street | USD | 102 | AUD | 137 | 05/15/17 | — | |
State Street | USD | 153 | AUD | 205 | 05/15/17 | — | |
State Street | USD | 10 | CHF | 10 | 05/15/17 | — | |
State Street | USD | 25 | CHF | 25 | 05/15/17 | — | |
State Street | USD | 49 | EUR | 45 | 05/15/17 | — | |
State Street | USD | 74 | EUR | 68 | 05/15/17 | — | |
State Street | USD | 10,383 | EUR | 9,721 | 05/15/17 | 212 | |
State Street | USD | 225 | GBP | 174 | 05/15/17 | — | |
State Street | USD | 10,524 | GBP | 8,419 | 05/15/17 | 384 | |
State Street | USD | 53 | JPY | 5,957 | 05/15/17 | — | |
State Street | USD | 10,436 | JPY | 1,160,315 | 05/15/17 | (22 | ) |
State Street | USD | 45 | SEK | 400 | 05/15/17 | — | |
State Street | AUD | 341 | USD | 255 | 05/15/17 | — | |
State Street | EUR | 113 | USD | 123 | 05/15/17 | — | |
State Street | EUR | 3,888 | USD | 4,153 | 05/15/17 | (85 | ) |
State Street | EUR | 5,833 | USD | 6,230 | 05/15/17 | (127 | ) |
State Street | GBP | 290 | USD | 375 | 05/15/17 | — | |
State Street | GBP | 5,051 | USD | 6,314 | 05/15/17 | (230 | ) |
State Street | JPY | 3,574 | USD | 32 | 05/15/17 | — | |
State Street | JPY | 696,189 | USD | 6,262 | 05/15/17 | 13 | |
State Street | NOK | 621 | USD | 73 | 05/15/17 | — | |
State Street | SEK | 37,150 | USD | 4,172 | 05/15/17 | (25 | ) |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 146 |
Total Return Swap Contracts (*) | ||||||
Amounts in thousands | ||||||
Notional | Termination | Fair Value | ||||
Underlying Reference Entity | Counterparty | Amount | Date | $ | ||
Markit IOS Index | Goldman Sachs | USD | 17,215 | 01/12/45 | (63 | ) |
Markit IOS Index | Goldman Sachs | USD | 12,545 | 01/12/45 | (33 | ) |
Markit IOS Index | Goldman Sachs | USD | 1,266 | 01/12/45 | (3 | ) |
Markit IOS Index | JPMorgan Chase | USD | 12,545 | 01/12/45 | (44 | ) |
Markit IOS Index | JPMorgan Chase | USD | 2,585 | 01/12/45 | 7 | |
Markit IOS Index | JPMorgan Chase | USD | 3,795 | 01/12/45 | 14 | |
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å) | (122 | ) |
(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were based on 1
Month LIBOR rate plus a fee ranging from 3.500% to 4.500%.
Interest Rate Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Termination | Fair Value | ||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | ||||
Barclays | USD | 197 | Three Month MIBOR | 1.627 | % | 03/27/19 | — | ||
Barclays | USD | 6,567 | 1.598 | % | Three Month LIBOR | 04/28/19 | — |
See accompanying notes which are an integral part of the financial statements.
362 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Interest Rate Swap Contracts | ||||||||||
Amounts in thousands | ||||||||||
Termination | Fair Value | |||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | |||||
Barclays | USD | 4,889 | 1.570 | % | Three Month LIBOR | 05/02/19 | (1 | ) | ||
Barclays | USD | 100,841 | Three Month MIBOR | 1.750 | % | 06/21/19 | (244 | ) | ||
Barclays | USD | 14,370 | Three Month MIBOR | 2.200 | % | 06/21/22 | (160 | ) | ||
Barclays | USD | 2,176 | 2.398 | % | Three Month LIBOR | 03/27/27 | 29 | |||
Barclays | USD | 5,465 | Three Month MIBOR | 2.335 | % | 03/29/27 | (43 | ) | ||
Barclays | USD | 4,156 | Three Month MIBOR | 2.375 | % | 03/31/27 | (48 | ) | ||
Barclays | USD | 4,355 | 2.362 | % | Three Month LIBOR | 04/03/27 | 45 | |||
Barclays | USD | 1,905 | Three Month MIBOR | 2.408 | % | 04/04/27 | (27 | ) | ||
Barclays | USD | 6,774 | 2.337 | % | Three Month LIBOR | 04/05/27 | 54 | |||
Barclays | USD | 911 | 2.336 | % | Three Month LIBOR | 04/06/27 | 7 | |||
Barclays | USD | 1,089 | 2.338 | % | Three Month LIBOR | 04/06/27 | 9 | |||
Barclays | USD | 7,366 | Three Month MIBOR | 2.320 | % | 04/06/27 | (47 | ) | ||
Barclays | USD | 1,273 | Three Month MIBOR | 2.349 | % | 04/07/27 | (11 | ) | ||
Barclays | USD | 2,428 | 2.300 | % | Three Month LIBOR | 04/11/27 | 11 | |||
Barclays | USD | 3,560 | Three Month MIBOR | 2.353 | % | 04/12/27 | (33 | ) | ||
Barclays | USD | 5,371 | Three Month MIBOR | 2.332 | % | 04/12/27 | (40 | ) | ||
Barclays | USD | 3,330 | 2.217 | % | Three Month LIBOR | 04/18/27 | (10 | ) | ||
Barclays | USD | 4,816 | Three Month MIBOR | 2.267 | % | 04/18/27 | (7 | ) | ||
Barclays | USD | 4,816 | 2.268 | % | Three Month LIBOR | 04/18/27 | 8 | |||
Barclays | USD | 7,224 | 2.249 | % | Three Month LIBOR | 04/18/27 | (1 | ) | ||
Barclays | USD | 1,222 | 2.199 | % | Three Month LIBOR | 04/19/27 | (9 | ) | ||
Barclays | USD | 1,710 | 2.214 | % | Three Month LIBOR | 04/19/27 | (10 | ) | ||
Barclays | USD | 2,588 | Three Month MIBOR | 2.221 | % | 04/19/27 | — | |||
Barclays | USD | 5,662 | Three Month MIBOR | 2.193 | % | 04/19/27 | 43 | |||
Barclays | USD | 1,905 | Three Month MIBOR | 2.164 | % | 04/20/27 | — | |||
Barclays | USD | 3,094 | Three Month MIBOR | 2.162 | % | 04/21/27 | 25 | |||
Barclays | USD | 3,295 | 2.165 | % | Three Month LIBOR | 04/21/27 | (26 | ) | ||
Barclays | USD | 1,293 | Three Month MIBOR | 2.183 | % | 04/24/27 | 8 | |||
Barclays | USD | 4,108 | Three Month MIBOR | 2.209 | % | 04/24/27 | 16 | |||
Barclays | USD | 1,261 | Three Month MIBOR | 2.203 | % | 04/25/27 | 6 | |||
Barclays | USD | 2,035 | Three Month MIBOR | 2.278 | % | 04/27/27 | (5 | ) | ||
Barclays | USD | 1,393 | Three Month MIBOR | 2.305 | % | 04/28/27 | — | |||
Barclays | USD | 6,939 | Three Month MIBOR | 2.310 | % | 04/28/27 | (36 | ) | ||
Barclays | USD | 904 | Three Month MIBOR | 2.264 | % | 05/02/27 | — | |||
Barclays | USD | 4,175 | 2.286 | % | Three Month LIBOR | 05/02/27 | 12 | |||
Barclays | USD | 14,964 | 2.500 | % | Three Month LIBOR | 06/21/27 | 304 | |||
Barclays | USD | 658 | 2.714 | % | Three Month LIBOR | 03/22/47 | 29 | |||
Barclays | USD | 222 | 2.672 | % | Three Month LIBOR | 03/23/47 | 8 | |||
Barclays | USD | 504 | Three Month MIBOR | 2.530 | % | 05/02/47 | — | |||
Barclays | USD | 8,822 | 2.700 | % | Three Month LIBOR | 06/21/47 | 338 | |||
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $37 (å) | 194 |
Credit Default Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Credit Indices | |||||||||
Fund (Pays)/ | |||||||||
Receives | Termination | Fair Value | |||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | ||||
CMBX Index | Barclays | USD | 4,696 | 3.000 | % | 05/11/63 | (524 | ) | |
CMBX Index | Barclays | USD | 700 | 3.000 | % | 05/11/63 | (78 | ) | |
CMBX Index | Goldman Sachs | USD | 430 | (5.000 | %) | 01/17/47 | 71 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 363
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Credit Default Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Credit Indices | |||||||||
Fund (Pays)/ | |||||||||
Receives | Termination | Fair Value | |||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | ||||
CMBX Index | Goldman Sachs | USD | 362 | 3.000 | % | 01/17/47 | (29 | ) | |
CMBX Index | Goldman Sachs | USD | 160 | (5.000 | %) | 05/11/63 | 30 | ||
CMBX Index | Goldman Sachs | USD | 3,159 | 3.000 | % | 05/11/63 | (353 | ) | |
CMBX Index | JPMorgan Chase | USD | 7,774 | 3.000 | % | 01/17/47 | (628 | ) | |
CMBX Index | JPMorgan Chase | USD | 70 | 3.000 | % | 05/11/63 | (8 | ) | |
CMBX Index | JPMorgan Chase | USD | 1,230 | 3.000 | % | 05/11/63 | (137 | ) | |
CMBX Index | JPMorgan Chase | USD | 1,230 | 3.000 | % | 05/11/63 | (137 | ) | |
CMBX Index | JPMorgan Chase | USD | 70 | (3.000 | %) | 01/17/47 | 6 | ||
CMBX Index | JPMorgan Chase | USD | 22 | 3.000 | % | 01/17/47 | (2 | ) | |
CMBX Index | JPMorgan Chase | USD | 5,000 | 3.000 | % | 05/11/63 | (558 | ) | |
CMBX Index | JPMorgan Chase | USD | 89 | 3.000 | % | 05/11/63 | (10 | ) | |
CMBX Index | JPMorgan Chase | USD | 858 | (5.000 | %) | 05/11/63 | 162 | ||
CMBX Index | JPMorgan Chase | USD | 140 | 3.000 | % | 05/11/63 | (16 | ) | |
CMBX Index | JPMorgan Chase | USD | 1,000 | 3.000 | % | 05/11/63 | (112 | ) | |
CMBX Index | JPMorgan Chase | USD | 500 | 3.000 | % | 05/11/63 | (56 | ) | |
CMBX Index | JPMorgan Chase | USD | 206 | (5.000 | %) | 05/11/63 | 39 | ||
CMBX Index | JPMorgan Chase | USD | 140 | 3.000 | % | 05/11/63 | (16 | ) | |
CMBX NA Index | Goldman Sachs | USD | 50 | 3.000 | % | 05/11/63 | (6 | ) | |
CMBX NA Index | Goldman Sachs | USD | 24 | (3.000 | %) | 01/17/47 | 2 | ||
CMBX NA Index | Goldman Sachs | USD | 78 | (3.000 | %) | 01/17/47 | 6 | ||
CMBX NA Index | Goldman Sachs | USD | 90 | 3.000 | % | 05/11/63 | (10 | ) | |
CMBX NA Index | Goldman Sachs | USD | 103 | 3.000 | % | 05/11/63 | (12 | ) | |
CMBX NA Index | Goldman Sachs | USD | 137 | 3.000 | % | 05/11/63 | (15 | ) | |
CMBX NA Index | Goldman Sachs | USD | 103 | (3.000 | %) | 01/17/47 | 8 | ||
CMBX NA Index | Goldman Sachs | USD | 149 | 3.000 | % | 05/11/63 | (17 | ) | |
CMBX NA Index | Goldman Sachs | USD | 61 | 3.000 | % | 05/11/63 | (7 | ) | |
CMBX NA Index | Goldman Sachs | USD | 255 | 3.000 | % | 05/11/63 | (28 | ) | |
CMBX NA Index | Goldman Sachs | USD | 88 | 3.000 | % | 05/11/63 | (10 | ) | |
CMBX NA Index | Goldman Sachs | USD | 299 | 3.000 | % | 05/11/63 | (33 | ) | |
CMBX NA Index | Goldman Sachs | USD | 13,200 | 3.000 | % | 05/11/63 | (1,473 | ) | |
CMBX NA Index | Goldman Sachs | USD | 500 | 3.000 | % | 05/11/63 | (56 | ) | |
CMBX NA Index | Goldman Sachs | USD | 378 | 3.000 | % | 05/11/63 | (42 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 160 | 3.000 | % | 05/11/63 | (18 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 149 | 3.000 | % | 05/11/63 | (17 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 158 | 3.000 | % | 05/11/63 | (18 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 139 | 3.000 | % | 05/11/63 | (16 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 148 | (5.000 | %) | 01/17/47 | 24 | ||
CMBX NA Index | JPMorgan Chase | USD | 324 | 3.000 | % | 05/11/63 | (36 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 140 | 3.000 | % | 05/11/63 | (16 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 448 | 3.000 | % | 05/11/63 | (50 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 925 | (5.000 | %) | 01/17/47 | 152 | ||
CMBX NA Index | JPMorgan Chase | USD | 90 | 3.000 | % | 05/11/63 | (10 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 78 | 3.000 | % | 05/11/63 | (9 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 519 | (5.000 | %) | 01/17/47 | 85 | ||
CMBX NA Index | JPMorgan Chase | USD | 78 | 3.000 | % | 05/11/63 | (9 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 153 | 3.000 | % | 05/11/63 | (17 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 78 | 3.000 | % | 05/11/63 | (9 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 4,560 | 3.000 | % | 05/11/63 | (509 | ) | |
CMBX NA Index | JPMorgan Chase | USD | 563 | (5.000 | %) | 01/17/47 | 92 | ||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - ($3,804) (å) | (4,430 | ) |
See accompanying notes which are an integral part of the financial statements.
364 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Long-Term Investments | ||||||||||||||||||
Asset-Backed Securities | $ | — | $ | 1,094 | $ | — | $ | — | $ | 1,094 | 0.2 | |||||||
Corporate Bonds and Notes | — | 150,061 | — | — | 150,061 | 23.5 | ||||||||||||
International Debt | — | 26,350 | — | — | 26,350 | 4.1 | ||||||||||||
Loan Agreements | — | 105,821 | — | — | 105,821 | 16.6 | ||||||||||||
Mortgage-Backed Securities | — | 143,498 | 1,237 | — | 144,735 | 22.6 | ||||||||||||
Non-US Bonds | — | 420 | — | — | 420 | 0.1 | ||||||||||||
Options Purchased | 748 | 1,313 | — | — | 2,061 | 0.3 | ||||||||||||
Short-Term Investments | — | 95,616 | — | 150,265 | 245,881 | 38.5 | ||||||||||||
Total Investments | 748 | 524,173 | 1,237 | 150,265 | 676,423 | 105.9 | ||||||||||||
Other Assets and Liabilities, Net | (5.9 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 3,115 | — | — | — | 3,115 | 0.5 | ||||||||||||
Foreign Currency Exchange Contracts | 73 | 1,078 | — | — | 1,151 | 0.2 | ||||||||||||
Interest Rate Swap Contracts | — | 952 | — | — | 952 | 0.1 | ||||||||||||
Credit Default Swap Contracts | — | 677 | — | — | 677 | 0.1 | ||||||||||||
Total Return Swap Contracts | — | 21 | — | — | 21 | —* | ||||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (1,630 | ) | — | — | — | (1,630 | ) | (0.3 | ) | |||||||||
Options Written | — | (929 | ) | — | — | (929 | ) | (0.1 | ) | |||||||||
Foreign Currency Exchange Contracts | (17 | ) | (988 | ) | — | — | (1,005 | ) | (0.2 | ) | ||||||||
Interest Rate Swap Contracts | — | (758 | ) | — | — | (758 | ) | (0.1 | ) | |||||||||
Credit Default Swap Contracts | — | (5,107 | ) | — | — | (5,107 | ) | (0.8 | ) | |||||||||
Total Return Swap Contracts | — | (143 | ) | — | — | (143 | ) | (—)* | ||||||||||
Total Other Financial Instruments** | $ | 1,541 | $ | (5,197 | ) | $ | — | $ | — | $ | (3,656 | ) |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 365
Russell Investment Company
Unconstrained Total Return Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||||||||
Equity | Credit | Currency | Interest Rate | |||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | ||||||||
Location: Statement of Assets and Liabilities - Assets | ||||||||||||
Investments, at fair value* | $ | 256 | $ | — | $ | 633 | $ | 1,172 | ||||
Unrealized appreciation on foreign currency exchange contracts | — | — | 1,151 | — | ||||||||
Variation margin on futures contracts** | 140 | — | — | 2,975 | ||||||||
Total return swap contracts, at fair value | — | — | — | 21 | ||||||||
Interest rate swap contracts, at fair value | — | — | — | 952 | ||||||||
Credit default swap contracts, at fair value | — | 677 | — | — | ||||||||
Total | $ | 396 | $ | 677 | $ | 1,784 | $ | 5,120 | ||||
Location: Statement of Assets and Liabilities - Liabilities | ||||||||||||
Variation margin on futures contracts** | $ | — | $ | — | $ | — | $ | 1,630 | ||||
Unrealized depreciation on foreign currency exchange contracts | — | — | 1,005 | — | ||||||||
Options written, at fair value | 21 | — | 304 | 604 | ||||||||
Total return swap contracts, at fair value | — | — | — | 143 | ||||||||
Interest rate swap contracts, at fair value | — | — | — | 758 | ||||||||
Credit default swap contracts, at fair value | — | 5,107 | — | — | ||||||||
Total | $ | 21 | $ | 5,107 | $ | 1,309 | $ | 3,135 | ||||
Foreign | ||||||||||||
Equity | Credit | Currency | Interest Rate | |||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | ||||||||
Location: Statement of Operations - Net realized gain (loss) | ||||||||||||
Investments*** | $ | — | $ | — | $ | — | $ | 2,721 | ||||
Futures contracts | — | — | — | (2,167 | ) | |||||||
Options written | (105 | ) | — | — | 1,102 | |||||||
Total return swap contracts | — | — | — | 2,134 | ||||||||
Interest rate swap contracts | — | — | — | 373 | ||||||||
Credit default swap contracts | — | 310 | — | — | ||||||||
Foreign currency-related transactions**** | — | — | 729 | — | ||||||||
Total | $ | (105 | ) | $ | 310 | $ | 729 | $ | 4,163 | |||
Location: Statement of Operations - Net change in unrealized appreciation | ||||||||||||
(depreciation) | ||||||||||||
Investments***** | $ | — | $ | — | $ | (640 | ) | $ | 315 | |||
Futures contracts | 151 | — | — | 971 | ||||||||
Options written | 10 | — | — | 1,084 | ||||||||
Total return swap contracts | — | — | — | (455 | ) | |||||||
Interest rate swap contracts | — | — | — | 330 | ||||||||
Credit default swap contracts | — | (506 | ) | — | — | |||||||
Foreign currency-related transactions****** | — | — | 97 | — | ||||||||
Total | $ | 161 | $ | (506 | ) | $ | (543 | ) | $ | 2,245 |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
366 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Balance Sheet Offsetting Financial and Derivative Instruments —
April 30, 2017
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 2,061 | $ | — $ | 2,061 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 1,151 | — | 1,151 | |||||
Futures Contracts | Variation margin on futures contracts | 1,441 | — | 1,441 | |||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 21 | — | 21 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 952 | — | 952 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 677 | — | 677 | |||||
Total Financial and Derivative Assets | 6,303 | — | 6,303 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (2,694 | ) | — | (2,694 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 3,609 | $ | — $ | 3,609 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Assets | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||
Bank of Montreal | $ | 10 | $ | 10 | $ | — $ | — | |||
Brown Brothers Harriman | 49 | — | — | 49 | ||||||
Commonwealth Bank of Australia | 187 | 170 | — | 17 | ||||||
Goldman Sachs | 184 | 117 | 66 | 1 | ||||||
JPMorgan Chase | 1,261 | 1,261 | — | — | ||||||
Morgan Stanley | 1,308 | 584 | — | 724 | ||||||
State Street | 610 | 490 | — | 120 | ||||||
Total | $ | 3,609 | $ | 2,632 | $ | 66 | $ | 911 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 367
Russell Investment Company
Unconstrained Total Return Fund
Balance Sheet Offsetting Financial and Derivative Instruments, continued —
April 30, 2017
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 48 | $ | — $ | 48 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 1,005 | — | 1,005 | |||||
Options Written Contracts | Options written, at fair value | 929 | — | 929 | |||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 143 | — | 142 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 758 | — | 758 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 5,107 | — | 5,107 | |||||
Total Financial and Derivative Liabilities | 7,990 | — | 7,990 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (831 | ) | — | (831 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 7,159 | $ | — $ | 7,159 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of Montreal | $ | 79 | $ | 10 | $ | — | $ 69 | ||
Barclays | 603 | — | — | 603 | |||||
BNP Paribas | 22 | — | — | 22 | |||||
Commonwealth Bank of Australia | 170 | 170 | — | — | |||||
Goldman Sachs | 2,234 | 117 | — | 2,117 | |||||
JPMorgan Chase | 2,778 | 1,261 | — | 1,517 | |||||
Morgan Stanley | 584 | 584 | — | — | |||||
Royal Bank of Canada | 199 | — | — | 199 | |||||
State Street | 490 | 490 | — | — | |||||
Total | $ | 7,159 | $ | 2,632 | $ | — | $ 4,527 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
368 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 673,976 |
Investments, at fair value(>) | 676,423 | |
Cash | 17,817 | |
Cash (restricted)(a)(b) | 5,722 | |
Foreign currency holdings(^) | 881 | |
Unrealized appreciation on foreign currency exchange contracts | 1,151 | |
Receivables: | ||
Dividends and interest | 3,669 | |
Dividends from affiliated funds | 133 | |
Investments sold | 77,565 | |
Fund shares sold | 1,530 | |
Variation margin on futures contracts | 1,441 | |
Prepaid expenses | 59 | |
Total return swap contracts, at fair value(8) | 21 | |
Interest rate swap contracts, at fair value(•) | 952 | |
Credit default swap contracts, at fair value(+) | 677 | |
Total assets | 788,041 | |
Liabilities | ||
Payables: | ||
Due to broker (c)(d)(e) | 973 | |
Investments purchased | 139,427 | |
Fund shares redeemed | 117 | |
Accrued fees to affiliates | 338 | |
Other accrued expenses | 183 | |
Variation margin on futures contracts | 48 | |
Unfunded loan commitment | 240 | |
Unrealized depreciation on foreign currency exchange contracts | 1,005 | |
Options written, at fair value(x) | 929 | |
Total return swap contracts, at fair value(8) | 143 | |
Interest rate swap contracts, at fair value(•) | 758 | |
Credit default swap contracts, at fair value(+) | 5,107 | |
Total liabilities | 149,268 | |
Commitments and Contingencies (1) | ||
Net Assets | $ | 638,773 |
(1) See note 9 in the Notes to Financial Statements for detailed description of commitments and contingencies. |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 369
Russell Investment Company
Unconstrained Total Return Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (453 | ) |
Accumulated net realized gain (loss) | (2,039 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 2,447 | ||
Futures contracts | 1,485 | ||
Options written | 924 | ||
Total return swap contracts | (122 | ) | |
Interest rate swap contracts | 157 | ||
Credit default swap contracts | (626 | ) | |
Foreign currency-related transactions | 152 | ||
Shares of beneficial interest | 641 | ||
Additional paid-in capital | 636,207 | ||
Net Assets | $ | 638,773 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 9.96 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 10.35 | |
Class A — Net assets | $ | 106,588 | |
Class A — Shares outstanding ($.01 par value) | 10,697 | ||
Net asset value per share: Class C(#) | $ | 9.96 | |
Class C — Net assets | $ | 106,964 | |
Class C — Shares outstanding ($.01 par value) | 10,743 | ||
Net asset value per share: Class E(#) | $ | 9.96 | |
Class E — Net assets | $ | 101,642 | |
Class E — Shares outstanding ($.01 par value) | 10,200 | ||
Net asset value per share: Class S(#) | $ | 9.97 | |
Class S — Net assets | $ | 231,434,871 | |
Class S — Shares outstanding ($.01 par value) | 23,223,407 | ||
Net asset value per share: Class T(#) | $ | 9.96 | |
Class T — Net assets | $ | 1,391,362 | |
Class T — Shares outstanding ($.01 par value) | 139,658 | ||
Net asset value per share: Class Y(#) | $ | 9.97 | |
Class Y — Net assets | $ | 405,631,657 | |
Class Y — Shares outstanding ($.01 par value) | 40,692,174 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 891 | |
(x) Premiums received on options written | $ | 1,853 | |
(8) Total return swap contracts - premiums paid (received) | $ | — | |
(•) Interest rate swap contracts - premiums paid (received) | $ | 37 | |
(+) Credit default swap contracts - premiums paid (received) | $ | (3,804 | ) |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 150,265 | |
(a) Cash Collateral for Futures | $ | 4,427 | |
(b) Cash Collateral for Options | $ | 1,295 | |
(c) Due to Broker for Futures | $ | 382 | |
(d) Due to Broker for Swaps | $ | 191 |
See accompanying notes which are an integral part of the financial statements.
370 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
(e) Due to Broker for Options | $ | 400 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 371
Russell Investment Company
Unconstrained Total Return Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends from affiliated funds | $ | 490 | |
Interest | 4,777 | ||
Total investment income | 5,267 | ||
Expenses | |||
Advisory fees | 1,946 | ||
Administrative fees | 94 | ||
Custodian fees | 185 | ||
Distribution fees - Class A | —** | ||
Distribution fees - Class C | —** | ||
Transfer agent fees - Class A | —** | ||
Transfer agent fees - Class C | —** | ||
Transfer agent fees - Class E | —** | ||
Transfer agent fees - Class S | 62 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 7 | ||
Professional fees | 49 | ||
Registration fees | 26 | ||
Shareholder servicing fees - Class C | —** | ||
Shareholder servicing fees - Class E | —** | ||
Trustees’ fees | 6 | ||
Printing fees | 19 | ||
Offering fees | 47 | ||
Miscellaneous | 7 | ||
Expenses before reductions | 2,448 | ||
Expense reductions | (977 | ) | |
Net expenses | 1,471 | ||
Net investment income (loss) | 3,796 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | (3,398 | ) | |
Futures contracts | (2,167 | ) | |
Options written | 997 | ||
Total return swap contracts | 2,134 | ||
Interest rate swap contracts | 373 | ||
Credit default swap contracts | 310 | ||
Foreign currency-related transactions | 760 | ||
Net realized gain (loss) | (991 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 3,008 | ||
Futures contracts | 1,122 | ||
Options written | 1,094 | ||
Total return swap contracts | (455 | ) | |
Interest rate swap contracts | 330 | ||
Credit default swap contracts | (506 | ) | |
Foreign currency-related transactions | 104 | ||
Net change in unrealized appreciation (depreciation) | 4,697 | ||
Net realized and unrealized gain (loss) | 3,706 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 7,502 |
See accompanying notes which are an integral part of the financial statements.
372 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 373
Russell Investment Company
Unconstrained Total Return Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016(1) | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 3,796 | $ | 645 | ||
Net realized gain (loss) | (991 | ) | 543 | |||
Net change in unrealized appreciation (depreciation) | 4,697 | (280 | ) | |||
Net increase (decrease) in net assets from operations | 7,502 | 908 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (2 | ) | — | |||
Class C | (1 | ) | — | |||
Class E | (1 | ) | — | |||
Class S | (315 | ) | (—)** | |||
Class T | (—)** | — | ||||
Class Y | (4,906 | ) | (15 | ) | ||
From net realized gain | ||||||
Class A | (1 | ) | — | |||
Class C | (1 | ) | — | |||
Class S | (1 | ) | — | |||
Class Y | (1,252 | ) | — | |||
Net decrease in net assets from distributions | (6,480 | ) | (15 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 393,754 | 243,104 | ||||
Total Net Increase (Decrease) in Net Assets | 394,776 | 243,997 | ||||
Net Assets | ||||||
Beginning of period | 243,997 | — | ||||
End of period | $ | 638,773 | $ | 243,997 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (453 | ) | $ | 976 |
** Less than $500.
(1) For the period September 23, 2016 (commencement of operations) to October 31, 2016.
See accompanying notes which are an integral part of the financial statements.
374 Unconstrained Total Return Fund
Russell Investment Company
Unconstrained Total Return Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | (1) | |||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||
Class A | |||||||||||||
Proceeds from shares sold | 1 | $ | 4 | 10 | $ | 101 | |||||||
Proceeds from reinvestment of distributions | —** | 2 | — | — | |||||||||
Payments for shares redeemed | (—)** | (—)*** | — | — | |||||||||
Net increase (decrease) | 1 | 6 | 10 | 101 | |||||||||
Class C | |||||||||||||
Proceeds from shares sold | —** | 3 | 10 | 102 | |||||||||
Proceeds from reinvestment of distributions | —** | 2 | — | — | |||||||||
Net increase (decrease) | —** | 5 | 10 | 102 | |||||||||
Class E | |||||||||||||
Proceeds from shares sold | — | — | 10 | 100 | |||||||||
Proceeds from reinvestment of distributions | —** | 2 | — | — | |||||||||
Net increase (decrease) | —** | 2 | 10 | 100 | |||||||||
Class S | |||||||||||||
Proceeds from shares sold | 23,839 | 235,332 | 21 | 207 | |||||||||
Proceeds from reinvestment of distributions | 32 | 315 | — | — | |||||||||
Payments for shares redeemed | (668 | ) | (6,616 | ) | — | — | |||||||
Net increase (decrease) | 23,203 | 229,031 | 21 | 207 | |||||||||
Class T(2) | |||||||||||||
Proceeds from shares sold | 140 | 1,385 | — | — | |||||||||
Proceeds from reinvestment of distributions | —** | —*** | — | — | |||||||||
Payments for shares redeemed | (—)** | (—)*** | — | — | |||||||||
Net increase (decrease) | 140 | 1,385 | — | — | |||||||||
Class Y | |||||||||||||
Proceeds from shares sold | 18,898 | 187,807 | 24,773 | 247,725 | |||||||||
Proceeds from reinvestment of distributions | 622 | 6,158 | 1 | 15 | |||||||||
Payments for shares redeemed | (3,088 | ) | (30,640 | ) | (514 | ) | (5,146 | ) | |||||
Net increase (decrease) | 16,432 | 163,325 | 24,260 | 242,594 | |||||||||
Total increase (decrease) | 39,776 | $ | 393,754 | 24,311 | $ | 243,104 |
** Less then 500 shares.
** Less then $500.
(1) For the period September 22, 2016 (commencement of operations) to April 30, 2017.
(2) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 375
Russell Investment Company
Unconstrained Total Return Fund
Financial Highlights — For the Period Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 10.04 | .10 | .01 | .11 | (.14 | ) | (.05 | ) | ||||||||
October 31, 2016(9) | 10.00 | .02 | .02 | .04 | — | — | ||||||||||
Class C | ||||||||||||||||
April 30, 2017* | 10.03 | .06 | .03 | .09 | (.11 | ) | (.05 | ) | ||||||||
October 31, 2016(9) | 10.00 | .01 | .02 | .03 | — | — | ||||||||||
Class E | ||||||||||||||||
April 30, 2017* | 10.04 | .10 | .01 | .11 | (.14 | ) | (.05 | ) | ||||||||
October 31, 2016(9) | 10.00 | .02 | .02 | .04 | — | — | ||||||||||
Class S | ||||||||||||||||
April 30, 2017* | 10.05 | .02 | .11 | .13 | (.16 | ) | (.05 | ) | ||||||||
October 31, 2016(9) | 10.00 | .03 | .02 | .05 | —(f) | — | ||||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 9.87 | (.04 | ) | .14 | .10 | (.01 | ) | — | ||||||||
Class Y | ||||||||||||||||
April 30, 2017* | 10.04 | .11 | .04 | .15 | (.17 | ) | (.05 | ) | ||||||||
October 31, 2016(9) | 10.00 | .03 | .01 | .04 | —(f) | — | ||||||||||
See accompanying notes which are an integral part of the financial statements.
376 Unconstrained Total Return Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | |||||||||
(.19 | ) | 9.96 | 1.26 | 107 | 1.68 | 1.17 | 2.04 | 84 | |||||||||
— | 10.04 | .40 | 101 | 1.70 | .90 | 2.28 | 43 | ||||||||||
(.16 | ) | 9.96 | .90 | 107 | 2.43 | 1.92 | 1.30 | 84 | |||||||||
— | 10.03 | .30 | 103 | 2.46 | 1.65 | 1.54 | 43 | ||||||||||
(.19 | ) | 9.96 | 1.26 | 102 | 1.68 | 1.17 | 2.06 | 84 | |||||||||
— | 10.04 | .40 | 100 | 1.70 | .90 | 2.28 | 43 | ||||||||||
(.21 | ) | 9.97 | 1.40 | 231,435 | 1.41 | .92 | .33 | 84 | |||||||||
—(f) | 10.05 | .50 | 208 | 1.47 | .65 | 2.81 | 43 | ||||||||||
(.01 | ) | 9.96 | 1.06 | 1,391 | 1.43 | .82 | (3.09 | ) | 84 | ||||||||
(.22 | ) | 9.97 | 1.48 | 405,631 | 1.23 | .72 | 2.26 | 84 | |||||||||
—(f) | 10.04 | .41 | 243,485 | 1.26 | .45 | 2.72 | 43 |
See accompanying notes which are an integral part of the financial statements.
Unconstrained Total Return Fund 377
Russell Investment Company
Unconstrained Total Return Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 271,632 |
Administration fees | 25,229 | |
Distribution fees | 87 | |
Shareholder servicing fees | 42 | |
Transfer agent fees | 38,730 | |
Trustee fees | 2,099 | |
$ | 337,819 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||
affiliated company are as follows: | |||||||||||||||
Fair Value, | Change in | ||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||
U.S. Cash Management Fund | $ | 87,573 | $ | 748,373 | $ | 685,668 | $ | — | $ (13) | $ 150,265 | $ | 490 | $ | — | |
$ | 87,573 | $ | 748,373 | $ | 685,668 | $ | — | $ (13) | $ 150,265 | $ | 490 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 673,897,904 | |||
Unrealized Appreciation | $ | 6,133,380 | |||
Unrealized Depreciation | (3,608,555 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 2,524,825 |
See accompanying notes which are an integral part of the financial statements.
378 Unconstrained Total Return Fund
Russell Investment Company
Strategic Bond Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 991.70 | $ | 1,019.98 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 4.79 | $ | 4.86 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.97% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 987.40 | $ | 1,016.27 | |
Expenses Paid During Period* | $ | 8.48 | $ | 8.60 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.72% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 990.80 | $ | 1,020.03 | |
of other funds. | Expenses Paid During Period* | $ | 4.74 | $ | 4.81 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.96% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Strategic Bond Fund 379
Russell Investment Company
Strategic Bond Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class I | Performance | expenses) | Class T | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 992.10 | $ | 1,021.37 | April 30, 2017 | $ | 1,016.70 | $ | 1,021.82 | |||
Expenses Paid During Period* | $ | 3.41 | $ | 3.46 | Expenses Paid During Period* | $ | 0.75 | $ | 3.01 | |||
* Expenses are equal to the Fund's annualized expense ratio of 0.69% | * Expenses are equal to the Fund's annualized expense ratio of 0.60% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the 45-day period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 45/365 (to reflect the period since | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | commencement of operations). May reflect amounts waived and/or reimbursed. | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | Without any waivers and/or reimbursements, expenses would have been higher. | |||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
Hypothetical | 0.60% (representing the six-month period annualized), multiplied by the | |||||||||||
Performance (5% | average account value over the period, multiplied by 181/365 (to reflect the | |||||||||||
Actual | return before | on-half year period). | ||||||||||
Class R6 | Performance | expenses) | ||||||||||
Beginning Account Value | Hypothetical | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | Performance (5% | |||||||
Ending Account Value | Actual | return before | ||||||||||
April 30, 2017 | $ | 992.60 | $ | 1,021.87 | Class Y | Performance | expenses) | |||||
Expenses Paid During Period* | $ | 2.91 | $ | 2.96 | Beginning Account Value | |||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.59% | Ending Account Value | |||||||||||
(representing the six month period annualized), multiplied by the average | April 30, 2017 | $ | 993.70 | $ | 1,022.02 | |||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | Expenses Paid During Period* | $ | 2.77 | $ | 2.81 | |||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. | * Expenses are equal to the Fund's annualized expense ratio of 0.56% | |||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
Hypothetical | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
Performance (5% | year period). May reflect amounts waived and/or reimbursed. Without any | |||||||||||
Actual | return before | waivers and/or reimbursements, expenses would have been higher. | ||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 992.10 | $ | 1,021.27 | ||||||||
Expenses Paid During Period* | $ | 3.51 | $ | 3.56 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.71% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. |
380 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Long-Term Investments - 88.7% | Chase Issuance Trust | ||||||
Asset-Backed Securities - 6.8% | Series 2013-A1 Class A1 | ||||||
Accredited Mortgage Loan Trust | 1.300% due 02/18/20 | 3,000 | 2,998 | ||||
Series 2006-1 Class A4 | Series 2014-A6 Class A6 | ||||||
0.814% due 04/25/36 (Ê) | 3,510 | 3,309 | 1.260% due 07/15/19 | 5,365 | 5,367 | ||
Series 2006-2 Class A4 | Citibank Credit Card Issuance Trust | ||||||
0.852% due 09/25/36 (Ê) | 9,855 | 9,045 | Series 2014-A1 Class A1 | ||||
ACE Securities Corp. Home Equity Loan | 2.880% due 01/23/23 | 12,474 | 12,857 | ||||
Trust | Series 2014-A5 Class A5 | ||||||
Series 2005-HE3 Class M2 | 2.680% due 06/07/23 | 3,629 | 3,714 | ||||
1.657% due 05/25/35 (Ê) | 5,122 | 5,115 | Series 2014-A6 Class A6 | ||||
ACE Securities Corp. Mortgage Loan | 2.150% due 07/15/21 | 2,000 | 2,019 | ||||
Trust | Series 2016-A2 Class A2 | ||||||
Series 2007-D1 Class A2 | 2.190% due 11/20/23 | 4,110 | 4,125 | ||||
6.336% due 02/25/38 (Þ) | 4,540 | 4,213 | |||||
American Express Credit Account | Conseco Finance Securitizations Corp. | ||||||
Master Trust | Series 2001-4 Class A4 | ||||||
Series 2014-2 Class A | 7.360% due 08/01/32 | 969 | 1,018 | ||||
1.260% due 01/15/20 | 5,485 | 5,486 | Conseco Financial Corp. | ||||
AmeriCredit Automobile Receivables | Series 1997-7 Class A6 | ||||||
Trust | 6.760% due 07/15/28 | 23 | 23 | ||||
Series 2013-1 Class C | Countrywide Asset-Backed Certificates | ||||||
1.570% due 01/08/19 | 261 | 261 | Series 2006-BC3 Class 2A2 | ||||
Series 2013-2 Class D | 1.131% due 02/25/37 (Ê) | 1,646 | 1,644 | ||||
2.420% due 05/08/19 | 5,880 | 5,897 | Series 2006-S8 Class A3 | ||||
Series 2013-3 Class C | 5.555% due 04/25/36 | 1,484 | 1,480 | ||||
2.380% due 06/10/19 | 5,470 | 5,483 | Dryden 34 Senior Loan Fund | ||||
Series 2013-5 Class B | Series 2017-34A Class AR | ||||||
1.520% due 01/08/19 | 152 | 152 | 2.182% due 10/15/26 (Ê)(Þ) | 5,200 | 5,199 | ||
Series 2015-2 Class A3 | Dryden 37 Senior Loan Fund | ||||||
1.270% due 01/08/20 | 3,664 | 3,662 | Series 2015-37A Class A | ||||
Series 2016-2 Class A2A | 2.380% due 04/15/27 (Ê)(Þ) | 8,390 | 8,405 | ||||
1.420% due 10/08/19 | 4,688 | 4,688 | Federal Home Loan Mortgage Corp. | ||||
Applebee's Funding LLC / IHOP | Structured Pass-Through Securities | ||||||
Funding LLC | Series 2000-30 Class A5 | ||||||
Series 2014-1 Class A2 | 6.669% due 12/25/30 | 3 | 3 | ||||
4.277% due 09/05/44 (Þ) | 1,650 | 1,626 | Fieldstone Mortgage Investment Trust | ||||
Asset-Backed Funding Trust Certificates | Series 2004-4 Class M3 | ||||||
Series 2005-WF1 Class M1 | 2.484% due 10/25/35 (Ê) | 1,981 | 1,920 | ||||
1.132% due 11/25/34 (Ê) | 4,063 | 3,943 | Ford Credit Auto Owner Trust | ||||
Bank of The West Auto Trust | Series 2015-A Class A3 | ||||||
Series 2014-1 Class A3 | 1.280% due 09/15/19 | 820 | 820 | ||||
1.090% due 03/15/19 (Þ) | 2,052 | 2,051 | GMACM Home Equity Loan Trust | ||||
Bear Stearns Second Lien Trust | Series 2007-HE1 Class A4 | ||||||
Series 2007-SV1A Class A2 | 5.952% due 08/25/37 | 10,133 | 10,511 | ||||
1.232% due 12/25/36 (Å)(Ê) | 668 | 658 | Series 2007-HE2 Class A2 | ||||
Blackbird Capital Aircraft Lease | 6.054% due 12/25/37 | 2,168 | 2,125 | ||||
Securitization, Ltd. | Series 2007-HE2 Class A3 | ||||||
Series 2016-1A Class AA | 6.193% due 12/25/37 | 556 | 545 | ||||
2.487% due 12/16/41 (Þ) | 3,875 | 3,844 | |||||
Greenpoint Manufactured Housing | |||||||
BNC Mortgage Loan Trust | Series 1999-1 Class A5 | ||||||
Series 2007-2 Class A5 | 6.770% due 08/15/29 | 2,386 | 2,342 | ||||
0.756% due 05/25/37 (Ê) | 3,435 | 2,708 | |||||
Series 1999-3 Class 1A7 | |||||||
Capital One Multi-Asset Execution Trust | 7.270% due 06/15/29 | 3,961 | 4,063 | ||||
Series 2014-A3 Class A3 | |||||||
1.374% due 01/18/22 (Ê) | 2,200 | 2,210 | GSAA Trust | ||||
Series 2006-S1 Class 2M2 | |||||||
Centex Home Equity Loan Trust | 5.850% due 08/25/34 (Å) | 3,016 | 2,688 | ||||
Series 2006-A Class AV4 | |||||||
0.842% due 06/25/36 (Ê) | 3,642 | 3,564 | GSAMP Trust |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 381
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Series 2006-HE5 Class A2C | 1.110% due 03/15/19 | 7,523 | 7,519 | ||||
0.742% due 08/25/36 (Ê) | 4,633 | 4,299 | Merrill Lynch Mortgage Investors Trust | ||||
Hertz Vehicle Financing LLC | Series 2006-FF1 Class M4 | ||||||
Series 2015-2A Class A | 0.962% due 08/25/36 (Ê) | 5,348 | 5,168 | ||||
2.020% due 09/25/19 (Þ) | 5,305 | 5,285 | Mid-State Capital Corp. Trust | ||||
Home Equity Asset Trust | Series 2005-1 Class A | ||||||
Series 2005-9 Class M1 | 5.745% due 01/15/40 | 1,664 | 1,779 | ||||
1.002% due 04/25/36 (Ê) | 2,977 | 2,800 | Nationstar Home Equity Loan Trust | ||||
Series 2006-3 Class M1 | Series 2006-B Class M1 | ||||||
0.982% due 07/25/36 (Ê) | 3,950 | 3,381 | 922.000% due 09/25/36 (Ê) | 5,340 | 4,586 | ||
Series 2006-4 Class 2A4 | Series 2007-A Class AV4 | ||||||
0.872% due 08/25/36 (Ê) | 5,459 | 5,085 | 0.822% due 03/25/37 (Ê) | 4,290 | 4,092 | ||
Honda Auto Receivables Owner Trust | Newcastle Mortgage Securities Trust | ||||||
Series 2015-2 Class A3 | Series 2006-1 Class M3 | ||||||
1.040% due 02/21/19 | 4,212 | 4,206 | 0.982% due 03/25/36 (Ê) | 5,600 | 4,955 | ||
HSI Asset Securitization Corp. Trust | Nissan Auto Receivables Owner Trust | ||||||
Series 2006-OPT3 Class 2A | Series 2013-B Class A4 | ||||||
0.961% due 02/25/36 (Ê) | 3,676 | 3,647 | 1.310% due 10/15/19 | 1,390 | 1,390 | ||
Series 2007-WF1 Class 2A4 | Series 2017-A Class A2B | ||||||
0.842% due 05/25/37 (Ê) | 9,069 | 7,976 | 1.037% due 01/15/20 (Ê) | 5,500 | 5,500 | ||
Hyundai Auto Receivables Trust | Park Place Securities, Inc. | ||||||
Series 2015-A Class A3 | Series 2004-WHQ2 Class M2 | ||||||
1.050% due 04/15/19 | 951 | 950 | 1.470% due 02/25/35 (Ê) | 3,390 | 3,394 | ||
Series 2015-C Class A2B | Popular ABS Mortgage Pass-Through | ||||||
0.908% due 11/15/18 (Ê) | 374 | 374 | Trust | ||||
Series 2015-C Class A3 | Series 2006-D Class A3 | ||||||
1.460% due 02/18/20 | 1,730 | 1,730 | 0.852% due 11/25/46 (Ê) | 5,455 | 4,912 | ||
Irwin Home Equity Loan Trust | Purchasing Power Funding LLC | ||||||
Series 2006-1 Class 2A3 | Series 2015-A Class A2 | ||||||
5.770% due 09/25/35 (Å) | 2,739 | 2,786 | 4.750% due 12/15/19 (Þ) | 2,320 | 2,328 | ||
Series 2007-1 Class 2A2 | RAMP Trust | ||||||
5.960% due 08/25/37 (Å) | 1,195 | 1,216 | Series 2006-RZ1 Class M4 | ||||
IXIS Real Estate Capital Trust | 1.162% due 03/25/36 (Ê) | 5,000 | 3,923 | ||||
Series 2006-HE1 Class A3 | Renaissance Home Equity Loan Trust | ||||||
0.992% due 03/25/36 (Ê) | 1,693 | 1,077 | Series 2005-4 Class A3 | ||||
Series 2006-HE1 Class A4 | 5.565% due 02/25/36 | 2 | 2 | ||||
1.192% due 03/25/36 (Ê) | 4,597 | 2,977 | Series 2006-1 Class AF3 | ||||
Series 2006-HE2 Class A3 | 5.608% due 05/25/36 | — | — | ||||
0.752% due 08/25/36 (Ê) | 623 | 248 | Series 2006-1 Class AF6 | ||||
Series 2006-HE2 Class A4 | 5.746% due 05/25/36 | 1,408 | 1,024 | ||||
0.852% due 08/25/36 (Ê) | 5,154 | 2,097 | Series 2007-1 Class AF2 | ||||
Series 2007-HE1 Class A3 | 5.512% due 04/25/37 | 6 | 3 | ||||
0.752% due 05/25/37 (Ê) | 6,829 | 2,413 | Santander Drive Auto Receivables Trust | ||||
Lehman ABS Manufactured Housing | Series 2013-1 Class D | ||||||
Contract Trust | 2.270% due 01/15/19 | 7,925 | 7,940 | ||||
Series 2001-B Class A6 | Series 2013-A Class D | ||||||
6.467% due 04/15/40 | 289 | 298 | 3.780% due 10/15/19 (Þ) | 2,500 | 2,538 | ||
Series 2001-B Class M1 | Series 2014-4 Class C | ||||||
6.630% due 04/15/40 | 1,615 | 1,732 | 2.600% due 11/16/20 | 7,012 | 7,053 | ||
Long Beach Mortgage Loan Trust | Series 2016-1 Class A2A | ||||||
Series 2004-1 Class M1 | 1.410% due 07/15/19 | 923 | 923 | ||||
1.741% due 02/25/34 (Ê) | 4,357 | 4,340 | Saxon Asset Securities Trust | ||||
Mastr Asset Backed Securities Trust | Series 2007-2 Class A2C | ||||||
Series 2006-HE5 Class A3 | 0.832% due 05/25/47 (Ê) | 6,064 | 4,517 | ||||
0.752% due 11/25/36 (Ê) | 3,416 | 2,241 | Securitized Asset-Backed Receivables | ||||
Mercedes-Benz Auto Receivables Trust | LLC Trust | ||||||
Series 2016-1 Class A2A | Series 2007-BR5 Class A2A |
See accompanying notes which are an integral part of the financial statements.
382 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
0.722% due 05/25/37 (Ê) | 3,278 | 2,550 | 3.750% due 11/30/26 | 7,540 | 7,633 | ||
SLM Private Credit Student Loan Trust | 4.750% due 11/30/36 | 300 | 311 | ||||
Series 2005-B Class A2 | 4.900% due 11/30/46 | 530 | 554 | ||||
1.030% due 03/15/23 (Ê) | 205 | 205 | AbbVie, Inc. | ||||
Series 2005-B Class A4 | 2.500% due 05/14/20 | 4,794 | 4,836 | ||||
1.180% due 06/15/39 (Ê) | 1,880 | 1,756 | 3.600% due 05/14/25 | 1,400 | 1,412 | ||
SLM Student Loan Trust | Actavis, Inc. | ||||||
Series 2006-1 Class A5 | 4.625% due 10/01/42 | 10 | 10 | ||||
0.992% due 07/26/21 (Ê) | 1,100 | 1,081 | ADT Corp. (The) | ||||
Small Business Administration | 3.500% due 07/15/22 | 440 | 426 | ||||
Series 2017-20D Class 1 | 4.125% due 06/15/23 | 405 | 395 | ||||
2.840% due 04/01/37 | 760 | 765 | AES Corp. | ||||
Soundview Home Loan Trust | 5.500% due 03/15/24 | 370 | 380 | ||||
Series 2005-4 Class M2 | Aetna, Inc. | ||||||
1.062% due 03/25/36 (Ê) | 3,870 | 3,507 | 1.700% due 06/07/18 | 1,625 | 1,625 | ||
Structured Asset Investment Loan Trust | 2.800% due 06/15/23 | 1,200 | 1,201 | ||||
Series 2005-HE3 Class M1 | Albemarle Corp. | ||||||
1.711% due 09/25/35 (Ê) | 6,150 | 6,067 | 4.150% due 12/01/24 | 1,633 | 1,709 | ||
Series 2006-2 Class A3 | Series 30YR | ||||||
0.626% due 04/25/36 (Ê) | 2,138 | 2,075 | 5.450% due 12/01/44 | 3,885 | 4,318 | ||
Structured Asset Securities Corp. | Allegheny Technologies, Inc. | ||||||
Mortgage Loan Trust | 5.950% due 01/15/21 | 475 | 470 | ||||
Series 2006-BC2 Class A3 | 7.875% due 08/15/23 | 180 | 186 | ||||
0.742% due 09/25/36 (Ê) | 3,330 | 3,031 | Allison Transmission, Inc. | ||||
Series 2006-BC5 Class A4 | 5.000% due 10/01/24 (Þ) | 570 | 581 | ||||
0.762% due 12/25/36 (Ê) | 2,362 | 2,168 | Ally Financial, Inc. | ||||
Series 2006-BC6 Class A4 | 3.250% due 11/05/18 | 3,385 | 3,419 | ||||
0.762% due 01/25/37 (Ê) | 5,252 | 4,944 | 8.000% due 11/01/31 | 1,140 | 1,357 | ||
Series 2006-WF3 Class A4 | Altria Group, Inc. | ||||||
0.902% due 09/25/36 (Ê) | 5,740 | 5,521 | 9.250% due 08/06/19 | 2,463 | 2,851 | ||
Series 2007-BC1 Class A4 | 2.850% due 08/09/22 | 1,340 | 1,354 | ||||
0.722% due 02/25/37 (Ê) | 8,482 | 8,001 | 9.950% due 11/10/38 | 515 | 862 | ||
Toyota Auto Receivables Owner Trust | 10.200% due 02/06/39 | 2,685 | 4,553 | ||||
Series 2017-A Class A2A | 5.375% due 01/31/44 | 280 | 326 | ||||
1.420% due 09/16/19 | 2,530 | 2,531 | Amazon.com, Inc. | ||||
United States Small Business | 4.950% due 12/05/44 | 400 | 459 | ||||
Administration | American Airlines Pass-Through Trust | ||||||
Series 2016-20G | Series 2011-1 Class A | ||||||
2.040% due 07/01/36 | 78 | 76 | 5.250% due 01/31/21 | 1,304 | 1,398 | ||
USAA Auto Owner Trust | Series 2013-2 Class A | ||||||
Series 2016-1 Class A2 | 4.950% due 01/15/23 | 3,045 | 3,249 | ||||
1.070% due 03/15/19 | 5,393 | 5,389 | Series 2014-1 Class B | ||||
Voya CLO, Ltd. | 4.375% due 10/01/22 | 1,862 | 1,874 | ||||
2.480% due 10/20/27 (Þ) | 5,690 | 5,746 | Series 2016-1 Class B | ||||
Wells Fargo Home Equity Trust | 5.250% due 01/15/24 | 1,938 | 2,010 | ||||
Series 2005-3 Class M4 | Series 2017-1B Class B | ||||||
1.581% due 11/25/35 (Ê) | 3,283 | 3,282 | 4.950% due 02/15/25 | 1,195 | 1,219 | ||
Wind River CLO, Ltd. | American Axle & Manufacturing, Inc. | ||||||
Series 2017-1A Class AR | 6.625% due 10/15/22 | 360 | 371 | ||||
2.338% due 04/18/26 (Ê)(Þ) | 6,020 | 6,020 | American Builders & Contractors Supply | ||||
341,200 | Co., Inc. | ||||||
Corporate Bonds and Notes - 19.2% | 5.750% due 12/15/23 (Þ) | 360 | 383 | ||||
21st Century Fox America, Inc. | American Express Credit Corp. | ||||||
6.900% due 08/15/39 | 3,377 | 4,366 | 1.702% due 03/18/19 (Ê) | 5,804 | 5,834 | ||
Abbott Laboratories | 1.875% due 05/03/19 | 2,440 | 2,440 | ||||
2.350% due 11/22/19 | 4,525 | 4,550 | 1.700% due 10/30/19 | 3,960 | 3,941 | ||
2.900% due 11/30/21 | 3,700 | 3,737 | 3.300% due 05/03/27 | 3,615 | 3,592 |
Series F
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 383
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.600% due 09/14/20 | 5,515 | 5,588 | BAC Capital Trust XIV | ||||
American Honda Finance Corp. | Series G | ||||||
Series MTN | 4.000% due 09/29/49 (Ê)(ƒ) | 500 | 425 | ||||
1.377% due 02/14/20 (Ê) | 4,500 | 4,511 | Ball Corp. | ||||
American International Group, Inc. | 5.250% due 07/01/25 | 720 | 778 | ||||
6.400% due 12/15/20 | 6,480 | 7,339 | Bank of America Corp. | ||||
3.750% due 07/10/25 | 1,000 | 1,011 | 5.000% due 05/13/21 | 1,600 | 1,742 | ||
American Tower Trust I | 3.124% due 01/20/23 | 4,060 | 4,103 | ||||
3.070% due 03/15/23 (Þ) | 1,825 | 1,832 | 4.250% due 10/22/26 | 1,150 | 1,172 | ||
Amgen, Inc. | 3.824% due 01/20/28 | 2,980 | 3,000 | ||||
3.625% due 05/22/24 | 100 | 103 | 3.705% due 04/24/28 | 1,860 | 1,862 | ||
4.400% due 05/01/45 | 500 | 494 | 6.110% due 01/29/37 | 2,625 | 3,074 | ||
Anadarko Petroleum Corp. | 4.244% due 04/24/38 | 1,595 | 1,598 | ||||
4.850% due 03/15/21 | 650 | 699 | 5.000% due 01/21/44 | 300 | 327 | ||
5.550% due 03/15/26 | 300 | 336 | 4.875% due 04/01/44 | 1,600 | 1,740 | ||
6.450% due 09/15/36 | 4,432 | 5,251 | Series GMTN | ||||
4.500% due 07/15/44 | 750 | 723 | 3.300% due 01/11/23 | 2,100 | 2,135 | ||
6.600% due 03/15/46 | 470 | 578 | 4.450% due 03/03/26 | 160 | 166 | ||
Anheuser-Busch InBev Finance, Inc. | 3.500% due 04/19/26 | 5,860 | 5,847 | ||||
2.650% due 02/01/21 | 1,100 | 1,114 | Series L | ||||
3.300% due 02/01/23 | 3,330 | 3,415 | 2.600% due 01/15/19 | 310 | 313 | ||
3.650% due 02/01/26 | 5,685 | 5,814 | Series X | ||||
4.900% due 02/01/46 | 1,570 | 1,715 | 6.250% due 09/29/49 (ƒ) | 420 | 450 | ||
Anthem, Inc. | Bank of America NA | ||||||
2.250% due 08/15/19 | 2,210 | 2,219 | Series BKNT | ||||
3.700% due 08/15/21 | 250 | 260 | 1.750% due 06/05/18 | 6,965 | 6,980 | ||
3.125% due 05/15/22 | 3,665 | 3,728 | 2.050% due 12/07/18 | 1,815 | 1,824 | ||
Apache Corp. | Bank of Montreal | ||||||
6.900% due 09/15/18 | 1,140 | 1,214 | 1.367% due 08/16/18 (Ê)(~) | 5,800 | 5,799 | ||
3.250% due 04/15/22 | 100 | 102 | Bank of New York Mellon Corp. (The) | ||||
5.100% due 09/01/40 | 900 | 946 | 2.600% due 08/17/20 | 3,145 | 3,198 | ||
4.750% due 04/15/43 | 180 | 183 | 2.200% due 08/16/23 | 3,970 | 3,842 | ||
4.250% due 01/15/44 | 120 | 113 | Bank One Capital III | ||||
Apollo Management Holdings, LP | 8.750% due 09/01/30 | 1,527 | 2,229 | ||||
4.400% due 05/27/26 (Þ) | 2,560 | 2,629 | Barrick NA Finance LLC | ||||
Apple, Inc. | 4.400% due 05/30/21 | 1,515 | 1,638 | ||||
1.873% due 02/22/19 (Ê) | 3,380 | 3,430 | 5.700% due 05/30/41 | 600 | 694 | ||
1.334% due 05/06/19 (Ê) | 2,725 | 2,737 | 5.750% due 05/01/43 | 1,785 | 2,085 | ||
3.000% due 02/09/24 | 1,850 | 1,886 | Becton Dickinson and Co. | ||||
2.450% due 08/04/26 | 1,750 | 1,675 | 3.734% due 12/15/24 | 139 | 140 | ||
Arconic, Inc. | 4.685% due 12/15/44 | 100 | 97 | ||||
5.400% due 04/15/21 | 1,225 | 1,314 | Berkshire Hathaway Energy Co. | ||||
5.900% due 02/01/27 | 350 | 376 | 6.500% due 09/15/37 | 350 | 461 | ||
5.950% due 02/01/37 | 350 | 357 | Blue Cube Spinco, Inc. | ||||
AT&T, Inc. | 10.000% due 10/15/25 | 1,670 | 2,058 | ||||
3.000% due 02/15/22 | 250 | 251 | BMW US Capital LLC | ||||
3.800% due 03/01/24 | 1,780 | 1,809 | 1.500% due 04/11/19 (Þ) | 5,753 | 5,725 | ||
3.400% due 05/15/25 | 90 | 88 | Boeing Co. (The) | ||||
4.250% due 03/01/27 | 7,830 | 7,990 | 4.875% due 02/15/20 | 700 | 759 | ||
5.250% due 03/01/37 | 3,025 | 3,102 | Brinker International, Inc. | ||||
4.800% due 06/15/44 | 990 | 936 | 3.875% due 05/15/23 | 500 | 473 | ||
4.350% due 06/15/45 | 480 | 426 | Broadcom Corp. / Broadcom Cayman | ||||
4.550% due 03/09/49 | 6,287 | 5,657 | Finance, Ltd. | ||||
Athene Global Funding | 3.000% due 01/15/22 (Þ) | 3,710 | 3,740 | ||||
2.750% due 04/20/20 (Þ) | 2,825 | 2,828 | Burlington Northern Santa Fe LLC | ||||
Avon Products, Inc. | 4.150% due 04/01/45 | 705 | 717 | ||||
6.500% due 03/01/19 | 490 | 510 | Capital One Bank USA NA | ||||
Series BKNT |
See accompanying notes which are an integral part of the financial statements.
384 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.250% due 02/13/19 | 4,335 | 4,349 | Series A | ||||
Capital One Financial Corp. | 6.500% due 11/15/22 | 1,780 | 1,816 | ||||
3.750% due 03/09/27 | 2,770 | 2,741 | CME Group, Inc. | ||||
Capital One NA | 5.300% due 09/15/43 | 200 | 243 | ||||
2.350% due 08/17/18 | 3,705 | 3,725 | CNOOC Finance USA LLC | ||||
Carlyle Holdings II Finance LLC | 3.500% due 05/05/25 | 1,300 | 1,294 | ||||
5.625% due 03/30/43 (Þ) | 2,995 | 3,108 | Comcast Corp. | ||||
Caterpillar Financial Services Corp. | 3.375% due 08/15/25 | 200 | 204 | ||||
1.350% due 05/18/19 | 2,050 | 2,033 | 3.300% due 02/01/27 | 2,640 | 2,655 | ||
CCO Holdings LLC / CCO Holdings | 3.200% due 07/15/36 | 120 | 108 | ||||
Capital Corp. | 6.400% due 03/01/40 | 150 | 194 | ||||
5.375% due 05/01/25 (Þ) | 760 | 792 | Constellation Brands, Inc. | ||||
Celgene Corp. | 6.000% due 05/01/22 | 1,785 | 2,035 | ||||
3.550% due 08/15/22 | 200 | 208 | 4.750% due 11/15/24 | 370 | 403 | ||
5.000% due 08/15/45 | 710 | 758 | Continental Resources, Inc. | ||||
CenturyLink, Inc. | 4.500% due 04/15/23 | 100 | 99 | ||||
Series G | 3.800% due 06/01/24 | 1,040 | 978 | ||||
6.875% due 01/15/28 | 350 | 349 | 4.900% due 06/01/44 | 305 | 265 | ||
Series T | Cott Holdings, Inc. | ||||||
5.800% due 03/15/22 | 300 | 314 | 5.500% due 04/01/25 (Þ) | 260 | 265 | ||
CF Industries, Inc. | Crown Castle Towers LLC | ||||||
5.150% due 03/15/34 | 700 | 634 | 6.113% due 01/15/20 (Þ) | 2,400 | 2,600 | ||
5.375% due 03/15/44 | 4,635 | 4,038 | |||||
Charter Communications Operating LLC | CVS Health Corp. | ||||||
2.750% due 12/01/22 | 600 | 601 | |||||
/ Charter Communications Operating | 5.125% due 07/20/45 | 1,100 | 1,229 | ||||
Capital | |||||||
4.464% due 07/23/22 | 3,895 | 4,144 | Daimler Finance NA LLC | ||||
6.384% due 10/23/35 | 1,935 | 2,226 | 2.000% due 08/03/18 (Þ) | 6,630 | 6,646 | ||
1.750% due 10/30/19 (Þ) | 3,850 | 3,814 | |||||
Chesapeake Energy Corp. | 2.300% due 01/06/20 (Þ) | 5,740 | 5,756 | ||||
6.125% due 02/15/21 | 310 | 305 | |||||
8.000% due 12/15/22 (Þ) | 20 | 21 | Darden Restaurants, Inc. | ||||
5.750% due 03/15/23 | 30 | 28 | 6.800% due 10/15/37 | 2,710 | 3,372 | ||
Chevron Corp. | DaVita HealthCare Partners, Inc. | ||||||
1.411% due 05/16/18 (Ê) | 875 | 879 | 5.000% due 05/01/25 | 420 | 423 | ||
1.790% due 11/16/18 | 750 | 754 | DCP Midstream Operating, LP | ||||
2.954% due 05/16/26 | 800 | 798 | 3.875% due 03/15/23 | 560 | 546 | ||
Chubb INA Holdings, Inc. | 5.600% due 04/01/44 | 175 | 167 | ||||
2.300% due 11/03/20 | 150 | 151 | Dell, Inc. | ||||
3.350% due 05/03/26 | 1,010 | 1,034 | 5.875% due 06/15/19 | 300 | 319 | ||
Cintas Corp. No. 2 | 7.100% due 04/15/28 | 735 | 797 | ||||
2.900% due 04/01/22 | 320 | 325 | Delta Air Lines Pass-Through Trust | ||||
3.700% due 04/01/27 | 340 | 351 | Series 071A Class A | ||||
Cisco Systems, Inc. | 6.821% due 08/10/22 | 2,790 | 3,195 | ||||
1.400% due 09/20/19 | 1,945 | 1,932 | Series 2002-1 Class G-1 | ||||
CIT Group, Inc. | 6.718% due 01/02/23 | 334 | 376 | ||||
5.000% due 08/01/23 | 300 | 323 | Devon Energy Corp. | ||||
Citigroup Capital III | 5.850% due 12/15/25 | 2,550 | 2,952 | ||||
7.625% due 12/01/36 | 2,825 | 3,326 | 5.000% due 06/15/45 | 1,150 | 1,168 | ||
Citigroup, Inc. | Devon Financing Co. LLC | ||||||
2.150% due 07/30/18 | 3,715 | 3,727 | 7.875% due 09/30/31 | 4,550 | 5,975 | ||
4.450% due 09/29/27 | 8,835 | 9,039 | DG Bank | ||||
8.125% due 07/15/39 | 590 | 868 | 1.427% due 08/16/18 (Ê)(~) | 3,750 | 3,749 | ||
5.300% due 05/06/44 | 671 | 726 | Diageo Investment Corp. | ||||
4.650% due 07/30/45 | 1,189 | 1,239 | 2.875% due 05/11/22 | 600 | 614 | ||
4.750% due 05/18/46 | 110 | 110 | Diamond 1 Finance Corp. / Diamond 2 | ||||
Finance Corp | |||||||
Series P | 3.480% due 06/01/19 (Þ) | 1,000 | 1,023 | ||||
5.950% due 12/31/49 (ƒ) | 1,900 | 1,996 | 4.420% due 06/15/21 (Þ) | 1,840 | 1,931 | ||
Clear Channel Worldwide Holdings, Inc. | 7.125% due 06/15/24 (Þ) | 630 | 696 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 385
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
6.020% due 06/15/26 (Þ) | 4,125 | 4,544 | Series BKNT | ||||
8.350% due 07/15/46 (Þ) | 6,245 | 8,082 | 2.875% due 10/01/21 | 2,900 | 2,951 | ||
Diamond Offshore Drilling, Inc. | First Data Corp. | ||||||
5.875% due 05/01/19 | 590 | 613 | 5.375% due 08/15/23 (Þ) | 500 | 520 | ||
4.875% due 11/01/43 | 445 | 322 | First Union Capital II | ||||
Discovery Communications LLC | Series A | ||||||
5.625% due 08/15/19 | 1,453 | 1,566 | 7.950% due 11/15/29 | 1,575 | 2,077 | ||
6.350% due 06/01/40 | 3,706 | 3,982 | FirstEnergy Corp. | ||||
DISH DBS Corp. | Series B | ||||||
6.750% due 06/01/21 | 235 | 256 | 4.250% due 03/15/23 | 700 | 729 | ||
5.875% due 11/15/24 | 550 | 577 | Series C | ||||
Dollar Tree, Inc. | 7.375% due 11/15/31 | 1,900 | 2,500 | ||||
5.750% due 03/01/23 | 490 | 520 | FirstEnergy Solutions Corp. | ||||
Dominion Resources, Inc. | 6.050% due 08/15/21 | 700 | 310 | ||||
7.000% due 06/15/38 | 150 | 194 | Ford Motor Credit Co. LLC | ||||
Dresdner Funding Trust I | 2.551% due 10/05/18 | 8,480 | 8,538 | ||||
8.151% due 06/30/31 (Þ) | 350 | 416 | 3.157% due 08/04/20 | 1,750 | 1,781 | ||
Duke Energy Carolinas LLC | 5.875% due 08/02/21 | 650 | 723 | ||||
5.300% due 02/15/40 | 200 | 240 | Freeport-McMoRan, Inc. | ||||
4.250% due 12/15/41 | 100 | 104 | 3.550% due 03/01/22 | 1,050 | 987 | ||
Duke Energy Progress LLC | 6.875% due 02/15/23 (Þ) | 100 | 105 | ||||
4.100% due 03/15/43 | 1,545 | 1,566 | 3.875% due 03/15/23 | 500 | 464 | ||
Eaton Corp. | 4.550% due 11/14/24 | 2,943 | 2,765 | ||||
2.750% due 11/02/22 | 1,000 | 1,005 | 5.400% due 11/14/34 | 270 | 240 | ||
4.150% due 11/02/42 | 250 | 247 | 5.450% due 03/15/43 | 4,255 | 3,628 | ||
eBay, Inc. | Frontier Communications Corp. | ||||||
1.650% due 08/01/19 (Ê) | 1,725 | 1,728 | 9.000% due 08/15/31 | 525 | 449 | ||
Ecolab, Inc. | GE Capital International Funding Co. | ||||||
4.350% due 12/08/21 | 100 | 108 | Unlimited Co | ||||
Embarq Corp. | 4.418% due 11/15/35 | 1,000 | 1,069 | ||||
7.995% due 06/01/36 | 820 | 835 | General Electric Co. | ||||
EMC Corp. | 1.958% due 04/15/20 (Ê) | 1,140 | 1,159 | ||||
1.875% due 06/01/18 | 350 | 348 | 5.300% due 02/11/21 | 900 | 1,000 | ||
2.650% due 06/01/20 | 800 | 783 | 4.500% due 03/11/44 | 1,750 | 1,910 | ||
3.375% due 06/01/23 | 595 | 573 | Series GMTN | ||||
Energy Transfer Partners, LP | 3.100% due 01/09/23 | 679 | 703 | ||||
4.050% due 03/15/25 | 2,910 | 2,907 | 6.150% due 08/07/37 | 583 | 761 | ||
6.050% due 06/01/41 | 2,678 | 2,849 | 6.875% due 01/10/39 | 1,780 | 2,543 | ||
EnLink Midstream Partners, LP | General Motors Co. | ||||||
2.700% due 04/01/19 | 3,340 | 3,344 | 3.500% due 10/02/18 | 380 | 387 | ||
4.150% due 06/01/25 | 2,525 | 2,536 | 4.875% due 10/02/23 | 3,070 | 3,274 | ||
5.050% due 04/01/45 | 370 | 350 | 6.250% due 10/02/43 | 650 | 710 | ||
Enterprise Products Operating LLC | 5.200% due 04/01/45 | 1,455 | 1,416 | ||||
Series B | General Motors Financial Co., Inc. | ||||||
7.034% due 01/15/68 | 2,890 | 2,984 | 4.375% due 09/25/21 | 150 | 158 | ||
4.250% due 05/15/23 | 100 | 103 | |||||
EOG Resources, Inc. | |||||||
2.450% due 04/01/20 | 2,570 | 2,590 | 5.250% due 03/01/26 | 1,380 | 1,488 | ||
4.150% due 01/15/26 | 200 | 211 | Genworth Holdings, Inc. | ||||
7.200% due 02/15/21 | 490 | 464 | |||||
Exelon Corp. | |||||||
2.850% due 06/15/20 | 2,590 | 2,636 | 7.625% due 09/24/21 | 560 | 533 | ||
Exxon Mobil Corp. | Georgia-Pacific LLC | ||||||
1.281% due 03/15/19 (Ê) | 4,555 | 4,560 | 8.875% due 05/15/31 | 2,190 | 3,380 | ||
3.043% due 03/01/26 | 500 | 505 | Gilead Sciences, Inc. | ||||
4.114% due 03/01/46 | 250 | 260 | 2.550% due 09/01/20 | 3,700 | 3,749 | ||
3.650% due 03/01/26 | 170 | 173 | |||||
Farmers Exchange Capital III | |||||||
5.454% due 10/15/54 (Þ) | 3,275 | 3,377 | 4.750% due 03/01/46 | 775 | 799 | ||
Fifth Third Bank | Glencore Funding LLC | ||||||
4.125% due 05/30/23 (Þ) | 280 | 288 |
See accompanying notes which are an integral part of the financial statements.
386 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.000% due 03/27/27 (Þ) | 4,415 | 4,395 | 3.700% due 07/29/25 | 150 | 158 | ||
GLP Capital, LP / GLP Financing II, Inc. | 4.900% due 07/29/45 | 100 | 113 | ||||
5.375% due 11/01/23 | 550 | 594 | International Business Machines Corp. | ||||
Goldman Sachs Capital I | 1.272% due 02/12/19 (Ê) | 1,270 | 1,277 | ||||
6.345% due 02/15/34 | 7,115 | 8,513 | International Game Technology | ||||
Goldman Sachs Capital II | 7.500% due 06/15/19 | 245 | 269 | ||||
4.000% due 06/01/43 (Ê)(ƒ) | 17 | 14 | International Lease Finance Corp. | ||||
Goldman Sachs Group, Inc. (The) | 7.125% due 09/01/18 (Þ) | 1,000 | 1,068 | ||||
5.250% due 07/27/21 | 1,900 | 2,090 | 5.875% due 08/15/22 | 1,370 | 1,540 | ||
3.850% due 07/08/24 | 1,445 | 1,493 | International Paper Co. | ||||
4.250% due 10/21/25 | 1,410 | 1,451 | 8.700% due 06/15/38 | 1,735 | 2,503 | ||
3.500% due 11/16/26 | 590 | 585 | IPALCO Enterprises, Inc. | ||||
3.850% due 01/26/27 | 4,345 | 4,415 | 5.000% due 05/01/18 | 3,500 | 3,596 | ||
6.450% due 05/01/36 | 50 | 60 | Jackson National Life Global Funding | ||||
6.750% due 10/01/37 | 3,631 | 4,536 | 2.600% due 12/09/20 (Þ) | 1,670 | 1,680 | ||
6.250% due 02/01/41 | 1,100 | 1,388 | Janus Capital Group, Inc. | ||||
5.150% due 05/22/45 | 170 | 180 | 4.875% due 08/01/25 | 1,675 | 1,797 | ||
4.750% due 10/21/45 | 1,000 | 1,070 | JC Penney Corp., Inc. | ||||
Series D | 7.400% due 04/01/37 | 525 | 429 | ||||
6.000% due 06/15/20 | 1,875 | 2,078 | Johnson & Johnson | ||||
Series GMTN | 2.250% due 03/03/22 | 2,200 | 2,222 | ||||
2.922% due 10/28/27 (Ê) | 4,540 | 4,680 | 3.625% due 03/03/37 | 350 | 353 | ||
Goodyear Tire & Rubber Co. (The) | Johnson Controls International PLC | ||||||
5.125% due 11/15/23 | 330 | 347 | 5.125% due 09/14/45 | 2,420 | 2,708 | ||
Great Plains Energy, Inc. | Joy Global, Inc. | ||||||
5.292% due 06/15/22 | 3,785 | 4,158 | 5.125% due 10/15/21 | 400 | 442 | ||
Halliburton Co. | JPMorgan Chase & Co. | ||||||
3.800% due 11/15/25 | 500 | 514 | 2.750% due 06/23/20 | 2,755 | 2,799 | ||
4.850% due 11/15/35 | 700 | 741 | 2.550% due 03/01/21 | 3,340 | 3,356 | ||
Harris Corp. | 1.656% due 03/09/21 (Ê) | 10,410 | 10,377 | ||||
4.854% due 04/27/35 | 250 | 270 | 4.350% due 08/15/21 | 900 | 966 | ||
5.054% due 04/27/45 | 260 | 286 | 3.875% due 09/10/24 | 1,000 | 1,024 | ||
HCA, Inc. | 4.125% due 12/15/26 | 1,600 | 1,654 | ||||
5.375% due 02/01/25 | 230 | 239 | 4.250% due 10/01/27 | 210 | 217 | ||
Hewlett Packard Enterprise Co. | 3.782% due 02/01/28 | 1,820 | 1,851 | ||||
Zero coupon due 10/05/18 | 1,595 | 1,614 | 6.400% due 05/15/38 | 2,208 | 2,873 | ||
Zero coupon due 10/15/35 | 7,038 | 7,508 | 4.950% due 06/01/45 | 700 | 745 | ||
Hospitality Properties Trust | KeyCorp | ||||||
4.950% due 02/15/27 | 2,180 | 2,271 | 2.300% due 12/13/18 | 2,950 | 2,966 | ||
HSBC Bank USA NA | Kinder Morgan, Inc. | ||||||
Series BKNT | 5.550% due 06/01/45 | 435 | 461 | ||||
5.875% due 11/01/34 | 2,665 | 3,212 | KKR Group Finance Co. II LLC | ||||
HSBC Finance Corp. | 5.500% due 02/01/43 (Þ) | 50 | 53 | ||||
6.676% due 01/15/21 | 700 | 795 | KKR Group Finance Co. III LLC | ||||
Humana, Inc. | 5.125% due 06/01/44 (Þ) | 1,935 | 1,988 | ||||
3.150% due 12/01/22 | 100 | 101 | Kohl's Corp. | ||||
3.950% due 03/15/27 | 330 | 340 | 5.550% due 07/17/45 | 4,515 | 4,087 | ||
4.625% due 12/01/42 | 150 | 154 | Kraft Foods Group, Inc. | ||||
4.950% due 10/01/44 | 120 | 128 | 3.500% due 06/06/22 | 700 | 724 | ||
4.800% due 03/15/47 | 30 | 32 | Kraft Heinz Foods Co. | ||||
Huntington National Bank (The) | 4.875% due 02/15/25 (Þ) | 4,039 | 4,325 | ||||
2.200% due 11/06/18 | 4,406 | 4,422 | 5.000% due 07/15/35 | 170 | 179 | ||
Hyundai Capital America | 5.000% due 06/04/42 | 80 | 82 | ||||
2.000% due 07/01/19 (Þ) | 2,085 | 2,067 | 5.200% due 07/15/45 | 150 | 158 | ||
Ingram Micro, Inc. | Kroger Co. (The) | ||||||
5.450% due 12/15/24 | 500 | 502 | 5.150% due 08/01/43 | 150 | 162 | ||
Intel Corp. | L Brands, Inc. |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 387
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
6.950% due 03/01/33 | 520 | 497 | MPLX, LP | ||||
Lamb Weston Holdings, Inc. | 4.875% due 06/01/25 | 700 | 745 | ||||
4.875% due 11/01/26 (Þ) | 350 | 361 | 4.125% due 03/01/27 | 4,840 | 4,902 | ||
Land O' Lakes, Inc. | Murphy Oil Corp. | ||||||
6.000% due 11/15/22 (Þ) | 4,550 | 5,028 | 4.700% due 12/01/22 | 630 | 616 | ||
Legg Mason, Inc. | Mutual of Omaha Insurance Co. | ||||||
4.750% due 03/15/26 | 3,239 | 3,428 | 4.297% due 07/15/54 (Þ) | 3,140 | 3,156 | ||
Lennar Corp. | Mylan NV | ||||||
4.500% due 04/30/24 | 220 | 222 | 3.950% due 06/15/26 | 6,065 | 5,999 | ||
Level 3 Financing, Inc. Term Loan B | 5.250% due 06/15/46 | 2,480 | 2,546 | ||||
3.304% due 02/22/24 (Ê) | 890 | 893 | Nabors Industries, Inc. | ||||
Lockheed Martin Corp. | 5.000% due 09/15/20 | 525 | 542 | ||||
3.350% due 09/15/21 | 1,690 | 1,759 | 4.625% due 09/15/21 | 455 | 460 | ||
4.500% due 05/15/36 | 100 | 107 | Navient Corp. | ||||
Series 10YR | Series MTN | ||||||
3.550% due 01/15/26 | 600 | 619 | 8.450% due 06/15/18 | 790 | 845 | ||
Lowe's Cos., Inc. | 8.000% due 03/25/20 | 725 | 798 | ||||
3.100% due 05/03/27 | 2,280 | 2,280 | 5.625% due 08/01/33 | 525 | 420 | ||
McDonald's Corp. | NBCUniversal Media LLC | ||||||
2.100% due 12/07/18 | 2,975 | 2,993 | 4.375% due 04/01/21 | 1,000 | 1,080 | ||
3.700% due 01/30/26 | 400 | 413 | NCL Corp., Ltd. | ||||
3.500% due 03/01/27 | 240 | 244 | 4.750% due 12/15/21 (Þ) | 210 | 215 | ||
MeadWestvaco Corp. | Netflix, Inc. | ||||||
7.375% due 09/01/19 | 970 | 1,081 | 5.875% due 02/15/25 | 380 | 412 | ||
Medtronic, Inc. | New Albertson's, Inc. | ||||||
3.150% due 03/15/22 | 3,595 | 3,723 | Series MTNC | ||||
3.500% due 03/15/25 | 1,000 | 1,032 | 6.625% due 06/01/28 | 400 | 358 | ||
Merck & Co., Inc. | Newell Brands, Inc. | ||||||
0.986% due 05/18/18 (Ê) | 8,385 | 8,414 | 3.150% due 04/01/21 | 150 | 154 | ||
2.750% due 02/10/25 | 300 | 299 | 3.850% due 04/01/23 | 400 | 418 | ||
Mercury General Corp. | 5.000% due 11/15/23 | 3,884 | 4,143 | ||||
4.400% due 03/15/27 | 3,240 | 3,260 | 4.200% due 04/01/26 | 250 | 263 | ||
MetLife, Inc. | NextEra Energy Capital Holdings, Inc. | ||||||
6.400% due 12/15/36 | 670 | 754 | 3.550% due 05/01/27 | 2,840 | 2,849 | ||
10.750% due 08/01/39 | 4,380 | 7,008 | Noble Energy, Inc. | ||||
Metropolitan Life Global Funding I | 8.250% due 03/01/19 | 600 | 665 | ||||
1.350% due 09/14/18 (Þ) | 9,700 | 9,662 | 3.900% due 11/15/24 | 1,000 | 1,021 | ||
2.500% due 12/03/20 (Þ) | 2,000 | 2,008 | 5.250% due 11/15/43 | 100 | 105 | ||
Microsoft Corp. | Nordea Bank AB | ||||||
2.875% due 02/06/24 | 970 | 984 | 1.435% due 04/10/19 (Ê)(~) | 1,800 | 1,799 | ||
2.700% due 02/12/25 | 240 | 239 | Norfolk Southern Corp. | ||||
2.400% due 08/08/26 | 1,350 | 1,293 | 1.800% due 02/14/20 | 2,580 | 2,581 | ||
3.300% due 02/06/27 | 4,005 | 4,115 | Northwest Airlines Pass Through Trust | ||||
3.450% due 08/08/36 | 20 | 19 | Series 07-1 | ||||
4.100% due 02/06/37 | 2,400 | 2,496 | 7.027% due 11/01/19 | 1,887 | 2,096 | ||
3.750% due 02/12/45 | 1,000 | 963 | NVR, Inc. | ||||
4.500% due 02/06/57 | 290 | 302 | 3.950% due 09/15/22 | 3,200 | 3,333 | ||
MidAmerican Energy Co. | Occidental Petroleum Corp. | ||||||
3.500% due 10/15/24 | 1,500 | 1,571 | 3.125% due 02/15/22 | 200 | 205 | ||
Morgan Stanley | 3.400% due 04/15/26 | 350 | 354 | ||||
2.553% due 10/24/23 (Ê) | 5,990 | 6,090 | 3.000% due 02/15/27 | 870 | 851 | ||
Series 10YR | 4.625% due 06/15/45 | 200 | 210 | ||||
3.625% due 01/20/27 | 3,840 | 3,850 | 4.400% due 04/15/46 | 150 | 153 | ||
Series 30YR | 4.100% due 02/15/47 | 1,010 | 991 | ||||
4.375% due 01/22/47 | 2,215 | 2,228 | Oracle Corp. | ||||
Series GMTN | 1.900% due 09/15/21 | 2,635 | 2,609 | ||||
7.300% due 05/13/19 | 1,000 | 1,103 | PACCAR Financial Corp. |
See accompanying notes which are an integral part of the financial statements.
388 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
1.650% due 02/25/19 | 1,400 | 1,399 | 5.625% due 04/15/20 (Þ) | 182 | 195 | ||
1.200% due 08/12/19 | 1,236 | 1,218 | Roper Technologies, Inc. | ||||
Series MTN | 2.800% due 12/15/21 | 1,270 | 1,277 | ||||
1.700% due 12/06/18 (Ê) | 2,850 | 2,873 | Rowan Cos., Inc. | ||||
Pacific Gas & Electric Co. | 4.875% due 06/01/22 | 350 | 329 | ||||
6.050% due 03/01/34 | 1,700 | 2,136 | 4.750% due 01/15/24 | 420 | 370 | ||
5.800% due 03/01/37 | 400 | 497 | Sabine Pass Liquefaction LLC | ||||
Party City Holdings, Inc. | 6.250% due 03/15/22 | 3,005 | 3,371 | ||||
1.000% due 08/19/22 (Ê) | 983 | 982 | 5.750% due 05/15/24 | 380 | 420 | ||
Pfizer, Inc. | 5.000% due 03/15/27 (Þ) | 780 | 823 | ||||
1.431% due 06/15/18 (Ê) | 7,545 | 7,572 | Safeway, Inc. | ||||
Pharmacia LLC | 7.250% due 02/01/31 | 490 | 474 | ||||
6.500% due 12/01/18 | 2,065 | 2,220 | Santander Holdings USA, Inc. | ||||
Philip Morris International, Inc. | 4.500% due 07/17/25 | 100 | 102 | ||||
2.000% due 02/21/20 | 7,585 | 7,611 | Schlumberger Holdings Corp. | ||||
2.500% due 08/22/22 | 600 | 599 | 4.000% due 12/21/25 (Þ) | 300 | 316 | ||
4.500% due 03/20/42 | 220 | 228 | South Carolina Electric & Gas Co. | ||||
Pricoa Global Funding I | 6.050% due 01/15/38 | 1,817 | 2,160 | ||||
2.550% due 11/24/20 (Þ) | 2,210 | 2,225 | Southern Natural Gas Co. LLC / | ||||
Prime Security Services Borrower LLC / | Southern Natural Issuing Corp. | ||||||
Prime Finance, Inc. | 4.400% due 06/15/21 | 2,280 | 2,426 | ||||
9.250% due 05/15/23 (Þ) | 330 | 361 | Southwest Airlines Co. | ||||
Procter & Gamble Co. (The) | 2.650% due 11/05/20 | 3,130 | 3,166 | ||||
1.440% due 11/01/19 (Ê) | 1,580 | 1,584 | Southwestern Energy Co. | ||||
Progress Energy, Inc. | 6.700% due 01/23/25 | 1,220 | 1,214 | ||||
4.400% due 01/15/21 | 200 | 212 | Sprint Capital Corp. | ||||
Protective Life Global Funding | 6.900% due 05/01/19 | 840 | 902 | ||||
2.700% due 11/25/20 (Þ) | 1,100 | 1,110 | 6.875% due 11/15/28 | 30 | 33 | ||
PulteGroup, Inc. | 8.750% due 03/15/32 | 1,700 | 2,092 | ||||
6.000% due 02/15/35 | 350 | 348 | Sprint Spectrum Co. LLC / Sprint | ||||
Quebecor World Capital Corp. | Spectrum Co II LLC / Sprint Spectrum | ||||||
4.875% due 01/02/49 (Ø)(Þ) | 625 | — | Co III LLC | ||||
6.125% due 11/15/49 (Ø) | 1,955 | — | Series A-1 | ||||
Quicken Loans, Inc. | 3.360% due 09/20/21 (Þ) | 2,300 | 2,320 | ||||
5.750% due 05/01/25 (Þ) | 230 | 232 | Svenska Handelsbanken AB | ||||
QVC, Inc. | 1.439% due 02/12/19 (Ê)(~) | 3,250 | 3,249 | ||||
4.375% due 03/15/23 | 845 | 851 | Symantec Corp. | ||||
Qwest Capital Funding, Inc. | 3.950% due 06/15/22 | 400 | 408 | ||||
7.750% due 02/15/31 | 300 | 290 | Talen Energy Supply LLC | ||||
4.600% due 12/15/21 | 350 | 271 | |||||
Raytheon Co. | Taylor Morrison Communities, Inc. / | ||||||
6.400% due 12/15/18 | 3,350 | 3,607 | |||||
Regency Energy Partners, LP / Regency | Monarch Communities Inc | ||||||
5.625% due 03/01/24 (Þ) | 700 | 740 | |||||
Energy Finance Corp. | Teachers Insurance & Annuity | ||||||
5.875% due 03/01/22 | 400 | 441 | |||||
Reliance Standard Life Global Funding | Association of America | ||||||
4.900% due 09/15/44 (Þ) | 400 | 440 | |||||
II | 4.375% due 09/15/54 (Þ) | 200 | 202 | ||||
2.500% due 01/15/20 (Þ) | 3,380 | 3,396 | |||||
Reynolds American, Inc. | Tenet Healthcare Corp. | ||||||
6.875% due 05/01/20 | 4,400 | 4,973 | 4.631% due 06/15/20 (Ê) | 500 | 503 | ||
3.250% due 06/12/20 | 250 | 258 | Tennessee Gas Pipeline Co. LLC | ||||
8.125% due 05/01/40 | 2,415 | 3,332 | 8.375% due 06/15/32 | 3,065 | 3,894 | ||
5.850% due 08/15/45 | 860 | 1,016 | Time Warner Cable LLC | ||||
Reynolds Group Issuer, Inc. / Reynolds | 4.125% due 02/15/21 | 1,000 | 1,041 | ||||
Group Issuer LLC / Reynolds Group | 7.300% due 07/01/38 | 400 | 500 | ||||
Issuer Lu | 5.875% due 11/15/40 | 540 | 586 | ||||
5.750% due 10/15/20 | 350 | 361 | Time Warner, Inc. | ||||
6.875% due 02/15/21 | 240 | 246 | 4.750% due 03/29/21 | 4,410 | 4,762 | ||
Rockies Express Pipeline LLC | 3.800% due 02/15/27 | 2,820 | 2,808 | ||||
6.850% due 07/15/18 (Þ) | 1,400 | 1,468 | TJX Cos., Inc. (The) |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 389
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.250% due 09/15/26 | 90 | 84 | 4.300% due 12/14/45 | 1,460 | 1,562 | ||
Toyota Motor Credit Corp. | Volkswagen Group of America Finance | ||||||
Series GMTN | LLC | ||||||
1.615% due 07/13/18 (Ê) | 525 | 527 | 2.450% due 11/20/19 (Þ) | 3,315 | 3,325 | ||
2.800% due 07/13/22 | 2,085 | 2,116 | VSD LLC | ||||
Series MTN | 3.600% due 12/25/43 | 801 | 801 | ||||
1.415% due 01/09/19 (Ê) | 8,000 | 8,021 | Wachovia Capital Trust II | ||||
Transcontinental Gas Pipe Line Co. LLC | 1.658% due 01/15/27 (Ê) | 2,745 | 2,464 | ||||
7.850% due 02/01/26 | 800 | 1,038 | Walgreens Boots Alliance, Inc. | ||||
Transocean, Inc. | 3.450% due 06/01/26 | 1,500 | 1,475 | ||||
6.800% due 03/15/38 | 560 | 448 | Wal-Mart Stores, Inc. | ||||
Tyson Foods, Inc. | 6.200% due 04/15/38 | 100 | 131 | ||||
5.150% due 08/15/44 | 10 | 11 | Waste Management, Inc. | ||||
Union Pacific Railroad Co. Pass-Through | 3.500% due 05/15/24 | 1,200 | 1,248 | ||||
Trust | WEA Finance LLC / Westfield UK & | ||||||
Series 06-1 | Europe Finance PLC | ||||||
5.866% due 07/02/30 | 851 | 959 | 3.250% due 10/05/20 (Þ) | 1,025 | 1,047 | ||
United Rentals NA, Inc. | WellPoint, Inc. | ||||||
5.750% due 11/15/24 | 380 | 400 | 6.375% due 06/15/37 | 2,100 | 2,604 | ||
United Technologies Corp. | Wells Fargo & Co. | ||||||
3.100% due 06/01/22 | 1,000 | 1,037 | 2.112% due 12/07/20 (Ê) | 3,670 | 3,718 | ||
4.500% due 06/01/42 | 200 | 216 | 2.440% due 03/04/21 (Ê) | 4,000 | 4,106 | ||
2.500% due 03/04/21 | 2,895 | 2,904 | |||||
UnitedHealth Group, Inc. | |||||||
1.900% due 07/16/18 | 3,765 | 3,782 | 4.600% due 04/01/21 | 1,500 | 1,621 | ||
3.875% due 10/15/20 | 100 | 106 | 3.069% due 01/24/23 | 5,600 | 5,665 | ||
5.700% due 10/15/40 | 400 | 496 | 2.402% due 10/31/23 (Ê) | 9,430 | 9,584 | ||
3.000% due 04/22/26 | 2,000 | 1,935 | |||||
Univision Communications, Inc. | 3.000% due 10/23/26 | 1,720 | 1,656 | ||||
3.898% due 03/15/24 (Ê) | 1,490 | 1,480 | |||||
5.125% due 02/15/25 (Þ) | 380 | 379 | 4.400% due 06/14/46 | 160 | 156 | ||
4.750% due 12/07/46 | 1,270 | 1,308 | |||||
UPC Financing Partnership | |||||||
3.784% due 04/15/25 | 670 | 672 | Series GMTN | ||||
2.600% due 07/22/20 | 5,385 | 5,452 | |||||
US Airways Pass-Through Trust | 4.300% due 07/22/27 | 2,160 | 2,265 | ||||
Series 2012-1 Class A | 4.900% due 11/17/45 | 1,700 | 1,785 | ||||
5.900% due 10/01/24 | 2,359 | 2,645 | |||||
West Corp. | |||||||
Series A Class A | 5.375% due 07/15/22 (Þ) | 260 | 263 | ||||
7.125% due 10/22/23 | 2,254 | 2,602 | |||||
Western Gas Partners, LP | |||||||
USF&G Capital III | 4.650% due 07/01/26 | 240 | 251 | ||||
8.312% due 07/01/46 (Þ) | 5,426 | 7,140 | |||||
Westlake Chemical Corp. | |||||||
Verizon Communications, Inc. | 4.875% due 05/15/23 | 2,055 | 2,134 | ||||
2.871% due 09/14/18 (Ê) | 1,610 | 1,643 | |||||
3.650% due 09/14/18 | 1,970 | 2,019 | Williams Cos., Inc. (The) | ||||
1.918% due 06/17/19 (Ê) | 2,550 | 2,570 | 4.550% due 06/24/24 | 730 | 747 | ||
5.150% due 09/15/23 | 4,745 | 5,241 | 5.750% due 06/24/44 | 385 | 398 | ||
2.625% due 08/15/26 | 310 | 284 | Williams Partners, LP | ||||
4.125% due 03/16/27 | 3,865 | 3,941 | 3.600% due 03/15/22 | 4,975 | 5,091 | ||
4.862% due 08/21/46 | 900 | 874 | 5.800% due 11/15/43 | 1,700 | 1,854 | ||
5.500% due 03/16/47 | 380 | 401 | XPO Logistics, Inc. | ||||
4.672% due 03/15/55 | 10,040 | 9,198 | 3.371% due 10/30/21 | 741 | 745 | ||
Viacom, Inc. | Yum! Brands, Inc. | ||||||
3.875% due 04/01/24 | 150 | 151 | 3.875% due 11/01/23 | 850 | 839 | ||
6.250% due 02/28/57 | 2,800 | 2,874 | 6.875% due 11/15/37 | 165 | 171 | ||
Virginia Electric & Power Co. | ZF NA Capital, Inc. | ||||||
4.750% due 04/29/25 (Þ) | 620 | 645 | |||||
Series B | |||||||
2.950% due 11/15/26 | 820 | 814 | ZFS Finance USA Trust V | ||||
6.500% due 05/09/37 (Þ) | 1,822 | 1,824 | |||||
Series C | |||||||
4.000% due 11/15/46 | 2,205 | 2,200 | 958,960 | ||||
Visa, Inc. | International Debt - 6.8% | ||||||
3.150% due 12/14/25 | 1,000 | 1,017 |
See accompanying notes which are an integral part of the financial statements.
390 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
1011778 B.C. Unlimited Liability Co. / | 5.000% due 09/30/43 | 300 | 341 | ||||
New Red Finance, Inc. | 6.750% due 10/19/75 (Þ) | 1,800 | 2,039 | ||||
6.000% due 04/01/22 (Þ) | 370 | 386 | |||||
1011778 B.C. Unlimited Liability Co. | BNP Paribas | ||||||
1st Lien Term Loan B | 4.625% due 03/13/27 (Þ) | 450 | 460 | ||||
3.302% due 02/17/24 (Ê) | 946 | 946 | BP Capital Markets PLC | ||||
3.245% due 05/06/22 | 100 | 103 | |||||
ABN AMRO Bank NV | 3.216% due 11/28/23 | 2,750 | 2,790 | ||||
4.750% due 07/28/25 (Þ) | 400 | 418 | |||||
Actavis Funding SCS | 3.119% due 05/04/26 | 800 | 792 | ||||
3.450% due 03/15/22 | 250 | 257 | Braskem Finance, Ltd. | ||||
3.800% due 03/15/25 | 1,100 | 1,120 | 6.450% due 02/03/24 | 1,850 | 1,970 | ||
4.750% due 03/15/45 | 120 | 122 | Brazilian Government International Bond | ||||
AerCap Global Aviation Trust | 5.625% due 01/07/41 | 2,360 | 2,344 | ||||
6.500% due 06/15/45 (Þ) | 1,735 | 1,822 | British Telecommunications PLC | ||||
AerCap Ireland Capital, Ltd. / AerCap | 9.125% due 12/15/30 | 200 | 302 | ||||
Global Aviation Trust | Canadian Oil Sands, Ltd. | ||||||
3.750% due 05/15/19 | 400 | 412 | 7.750% due 05/15/19 (Þ) | 2,590 | 2,831 | ||
Alcoa Nederland Holding BV | 4.500% due 04/01/22 (Þ) | 3,740 | 3,830 | ||||
7.000% due 09/30/26 (Þ) | 300 | 332 | CDP Financial, Inc. | ||||
America Movil SAB de CV | 5.600% due 11/25/39 (Þ) | 1,780 | 2,252 | ||||
5.000% due 03/30/20 | 4,251 | 4,572 | Cedar Funding III CLO, Ltd. | ||||
Anglo American Capital PLC | Series 2014-3A Class A1 | ||||||
3.625% due 05/14/20 (Þ) | 1,050 | 1,063 | 1.863% due 05/20/26 (Ê)(Þ) | 10,850 | 10,895 | ||
3.750% due 04/10/22 (Þ) | 380 | 382 | Celulosa Arauco y Constitucion SA | ||||
4.875% due 05/14/25 (Þ) | 500 | 521 | 4.750% due 01/11/22 | 300 | 314 | ||
ArcelorMittal | Cenovus Energy, Inc. | ||||||
6.250% due 03/01/21 | 525 | 572 | 5.700% due 10/15/19 | 1,135 | 1,221 | ||
7.000% due 02/25/22 | 885 | 1,003 | 6.750% due 11/15/39 | 210 | 236 | ||
7.750% due 10/15/39 | 525 | 600 | Colombia Government International | ||||
7.500% due 03/01/41 | 1,010 | 1,139 | Bond | ||||
Argentine Republic Government | 5.625% due 02/26/44 | 1,720 | 1,879 | ||||
International Bond | Commonwealth Bank of Australia | ||||||
6.875% due 04/22/21 | 490 | 536 | 5.000% due 10/15/19 (Þ) | 200 | 214 | ||
5.625% due 01/26/22 | 2,660 | 2,770 | Cooperatieve Rabobank UA | ||||
Aristocrat International Pty, Ltd. Term | 4.625% due 12/01/23 | 900 | 960 | ||||
Loan B2 | 4.375% due 08/04/25 | 2,600 | 2,705 | ||||
3.352% due 10/20/21 | 975 | 983 | 11.000% due 06/29/49 (ƒ)(Þ) | 400 | 467 | ||
AstraZeneca PLC | Credit Agricole SA | ||||||
2.375% due 11/16/20 | 4,415 | 4,447 | 8.375% due 10/29/49 (ƒ)(Þ) | 600 | 669 | ||
Bancolombia SA | Credit Suisse Group AG | ||||||
5.950% due 06/03/21 | 3,370 | 3,711 | 3.574% due 01/09/23 (Þ) | 2,630 | 2,662 | ||
Bank of Montreal | 4.282% due 01/09/28 (Þ) | 4,765 | 4,840 | ||||
2.100% due 12/12/19 | 2,175 | 2,186 | 6.250% due 12/31/49 (ƒ)(Þ) | 2,815 | 2,934 | ||
1.900% due 08/27/21 | 1,535 | 1,510 | Credit Suisse Group Funding Guernsey, | ||||
Bank of Nova Scotia (The) | Ltd. | ||||||
1.781% due 06/14/19 (Ê) | 7,500 | 7,554 | 4.875% due 05/15/45 | 1,000 | 1,045 | ||
Barclays Bank PLC | Danone SA | ||||||
6.278% due (ƒ) | 215 | 235 | 2.077% due 11/02/21 (Þ) | 750 | 733 | ||
Barclays PLC | 2.589% due 11/02/23 (Þ) | 1,120 | 1,091 | ||||
3.684% due 01/10/23 | 2,250 | 2,289 | 2.947% due 11/02/26 (Þ) | 920 | 881 | ||
4.337% due 01/10/28 | 7,130 | 7,289 | Danske Bank A/S | ||||
Barrick Gold Corp. | 1.574% due 03/02/20 (Ê)(Þ) | 1,600 | 1,601 | ||||
4.100% due 05/01/23 | 3,960 | 4,307 | Ecopetrol SA | ||||
BBVA Bancomer SA | 4.125% due 01/16/25 | 5,020 | 4,853 | ||||
6.750% due 09/30/22 (Þ) | 3,265 | 3,692 | 5.875% due 05/28/45 | 1,510 | 1,386 | ||
Bharti Airtel, Ltd. | Ensco PLC | ||||||
4.375% due 06/10/25 (Þ) | 2,580 | 2,589 | 8.000% due 01/31/24 | 203 | 201 | ||
BHP Billiton Finance USA, Ltd. | 4.500% due 10/01/24 | 425 | 351 | ||||
2.875% due 02/24/22 | 79 | 81 | Equate Petrochemical BV |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 391
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.250% due 11/03/26 (Þ) | 460 | 468 | NCL Corp., Ltd. | ||||
ESAL GmbH | 4.625% due 11/15/20 (Þ) | 280 | 287 | ||||
6.250% due 02/05/23 (Þ) | 2,420 | 2,453 | Noble Holding International, Ltd. | ||||
Fiat Chrysler Automobiles NV | 4.900% due 08/01/20 | 81 | 78 | ||||
5.250% due 04/15/23 | 580 | 596 | 7.700% due 04/01/25 | 240 | 216 | ||
GlaxoSmithKline Capital PLC | 8.700% due 04/01/45 | 425 | 371 | ||||
2.850% due 05/08/22 | 400 | 407 | Nokia OYJ | ||||
HBOS PLC | 6.625% due 05/15/39 | 4,450 | 4,866 | ||||
Series GMTN | Nordea Bank AB | ||||||
6.750% due 05/21/18 (Þ) | 1,000 | 1,046 | 1.437% due 02/21/19 (Ê)(~) | 4,000 | 3,999 | ||
HSBC Bank PLC | 4.875% due 05/13/21 (Þ) | 600 | 643 | ||||
7.650% due 05/01/25 | 2,055 | 2,538 | NXP BV / NXP Funding LLC | ||||
Series 1M | 4.625% due 06/15/22 (Þ) | 2,410 | 2,588 | ||||
1.625% due 06/29/49 (f) | 4,220 | 3,404 | OCP SA | ||||
HSBC Holdings PLC | 4.500% due 10/22/25 (Þ) | 330 | 328 | ||||
3.400% due 03/08/21 | 2,000 | 2,057 | Ontario Teachers' Cadillac Fairview | ||||
3.262% due 03/13/23 | 3,185 | 3,226 | Properties Trust | ||||
4.250% due 08/18/25 | 1,000 | 1,021 | 3.125% due 03/20/22 (Þ) | 7,475 | 7,577 | ||
3.900% due 05/25/26 | 1,500 | 1,540 | Pernod Ricard SA | ||||
Indonesia Government International | 4.450% due 01/15/22 (Þ) | 580 | 624 | ||||
Bond | 5.500% due 01/15/42 (Þ) | 150 | 174 | ||||
Series REGS | Perrigo Finance PLC | ||||||
3.750% due 04/25/22 | 1,380 | 1,417 | 3.500% due 12/15/21 | 3,195 | 3,279 | ||
5.125% due 01/15/45 | 400 | 424 | Peru Government International Bond | ||||
ING Bank NV | 5.625% due 11/18/50 | 670 | 812 | ||||
5.800% due 09/25/23 (Þ) | 4,500 | 5,038 | Petrobras Global Finance BV | ||||
ING Groep NV | 5.375% due 01/27/21 | 4,750 | 4,879 | ||||
3.950% due 03/29/27 | 2,980 | 3,046 | 6.250% due 03/17/24 | 130 | 135 | ||
Intelsat Jackson Holdings SA | 7.375% due 01/17/27 | 70 | 75 | ||||
7.250% due 04/01/19 | 2,990 | 2,882 | Petroleos Mexicanos | ||||
Intesa Sanpaolo SpA | 5.375% due 03/13/22 (Þ) | 2,830 | 2,975 | ||||
5.017% due 06/26/24 (Þ) | 1,800 | 1,715 | 3.500% due 01/30/23 | 570 | 544 | ||
Kinross Gold Corp. | 6.875% due 08/04/26 | 780 | 872 | ||||
5.950% due 03/15/24 | 685 | 734 | 5.625% due 01/23/46 | 4,840 | 4,309 | ||
Kuwait International Government Bond | Province of Quebec Canada | ||||||
3.500% due 03/20/27 (Þ) | 1,050 | 1,074 | 1.436% due 07/21/19 (Ê) | 3,380 | 3,382 | ||
Lloyds Banking Group PLC | Series MTN | ||||||
4.500% due 11/04/24 | 600 | 620 | 1.161% due 09/04/18 (Ê) | 1,895 | 1,897 | ||
Lukoil International Finance BV | Provincia de Buenos Aires/Argentina | ||||||
6.125% due 11/09/20 (Þ) | 3,360 | 3,695 | 6.500% due 02/15/23 (Þ) | 450 | 464 | ||
LyondellBasell Industries NV | 7.875% due 06/15/27 (Þ) | 400 | 418 | ||||
5.000% due 04/15/19 | 1,121 | 1,178 | PT Pertamina (Persero) | ||||
Majapahit Holding BV | 4.300% due 05/20/23 (Þ) | 2,715 | 2,793 | ||||
Series REGS | Republic of Poland Government | ||||||
7.750% due 01/20/20 | 380 | 428 | International Bond | ||||
5.125% due 04/21/21 | 2,200 | 2,417 | |||||
Medtronic Global Holdings SCA | |||||||
3.350% due 04/01/27 | 560 | 570 | Rio Tinto Finance USA, Ltd. | ||||
3.750% due 09/20/21 | 320 | 338 | |||||
Mexico Government International Bond | |||||||
5.550% due 01/21/45 | 2,290 | 2,525 | Royal Bank of Canada | ||||
Series GMTN | |||||||
Mitsubishi UFJ Financial Group, Inc. | 1.480% due 03/02/20 (Ê) | 6,715 | 6,720 | ||||
2.998% due 02/22/22 | 310 | 314 | |||||
Mondelez International Holdings | 2.125% due 03/02/20 | 4,315 | 4,328 | ||||
Netherlands BV | Royal Bank of Scotland Group PLC | ||||||
1.625% due 10/28/19 (Þ) | 4,620 | 4,553 | 6.400% due 10/21/19 | 1,000 | 1,089 | ||
MTN (Mauritius) Investment, Ltd. | 6.125% due 12/15/22 | 500 | 539 | ||||
6.500% due 10/13/26 (Þ) | 3,105 | 3,192 | 3.875% due 09/12/23 | 5,325 | 5,334 | ||
Nationwide Building Society | 5.125% due 05/28/24 | 1,500 | 1,542 | ||||
4.000% due 09/14/26 (Þ) | 5,225 | 5,168 | 7.648% due 09/30/49 (ƒ) | 350 | 415 |
See accompanying notes which are an integral part of the financial statements.
392 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Royal Bank of Scotland NV | 2.125% due 04/07/21 | 3,200 | 3,186 | ||||
4.650% due 06/04/18 | 200 | 205 | 3.625% due 09/15/31 | 945 | 937 | ||
Schlumberger Norge AS | Transocean, Inc. | ||||||
4.200% due 01/15/21 (Þ) | 500 | 532 | 6.500% due 11/15/20 | 595 | 604 | ||
Seagate HDD Cayman | 7.500% due 04/15/31 | 240 | 214 | ||||
4.875% due 03/01/24 (Þ) | 3,615 | 3,595 | UBS Group Funding Jersey, Ltd. | ||||
SFR Group SA | 4.125% due 09/24/25 (Þ) | 500 | 513 | ||||
7.375% due 05/01/26 (Þ) | 2,370 | 2,494 | UBS Group Funding Switzerland AG | ||||
Shell International Finance BV | 3.491% due 05/23/23 (Þ) | 1,000 | 1,016 | ||||
1.462% due 11/10/18 (Ê) | 5,690 | 5,727 | 4.253% due 03/23/28 (Þ) | 1,250 | 1,293 | ||
4.375% due 03/25/20 | 100 | 107 | UniCredit SpA | ||||
2.875% due 05/10/26 | 220 | 217 | 3.750% due 04/12/22 (Þ) | 1,550 | 1,551 | ||
4.375% due 05/11/45 | 1,000 | 1,026 | Vale Overseas, Ltd. | ||||
4.000% due 05/10/46 | 1,080 | 1,049 | 6.875% due 11/21/36 | 2,300 | 2,493 | ||
Shire Acquisitions Investments Co. | Valeant Pharmaceuticals International, | ||||||
1.900% due 09/23/19 | 5,855 | 5,821 | Inc. | ||||
Shire Acquisitions Investments Ireland | 5.875% due 05/15/23 (Þ) | 940 | 694 | ||||
DAC | 7.000% due 03/15/24 (Þ) | 1,780 | 1,816 | ||||
3.200% due 09/23/26 | 2,820 | 2,730 | Validus Holdings, Ltd. | ||||
Siemens Financieringsmaatschappij NV | 8.875% due 01/26/40 | 2,213 | 3,122 | ||||
2.700% due 03/16/22 (Þ) | 2,040 | 2,061 | Vodafone Group PLC | ||||
3.400% due 03/16/27 (Þ) | 3,580 | 3,652 | 5.450% due 06/10/19 | 1,030 | 1,101 | ||
Sinopec Group Overseas Development, | 7.875% due 02/15/30 | 2,490 | 3,343 | ||||
Ltd. | 6.250% due 11/30/32 | 750 | 886 | ||||
4.375% due 04/10/24 (Þ) | 530 | 561 | 6.150% due 02/27/37 | 940 | 1,092 | ||
Sirius International Group, Ltd. | Voya CLO, Ltd. | ||||||
7.506% due 05/29/49 (ƒ)(Þ) | 2,530 | 2,581 | Series 2014-3A Class A1 | ||||
Smurfit Kappa Treasury Funding, Ltd. | 2.302% due 07/25/26 (Ê)(Þ) | 2,595 | 2,597 | ||||
7.500% due 11/20/25 | 1,770 | 2,097 | Series 2017-2A Class A1R | ||||
SoftBank Group Corp. | 2.408% due 04/17/30 (Å) | 8,100 | 8,100 | ||||
4.500% due 04/15/20 (Þ) | 635 | 660 | Weatherford International, Ltd. | ||||
Southern Copper Corp. | 9.625% due 03/01/19 | 1,050 | 1,155 | ||||
6.750% due 04/16/40 | 60 | 68 | 6.750% due 09/15/40 | 315 | 298 | ||
5.250% due 11/08/42 | 1,970 | 1,922 | |||||
339,500 | |||||||
Standard Chartered PLC | Loan Agreements - 0.6% | ||||||
5.700% due 03/26/44 (Þ) | 1,400 | 1,477 | Air Medical Group Holdings, Inc. Term | ||||
7.014% due 12/30/49 (ƒ)(Þ) | 385 | 428 | Loan B | ||||
Sumitomo Mitsui Financial Group, Inc. | 4.250% due 04/28/22 (Ê) | 665 | 660 | ||||
Series 5FXD | Albertson's LLC 1st Lien Term Loan B4 | ||||||
2.058% due 07/14/21 | 450 | 442 | 3.992% due 08/23/21 (Ê) | 500 | 502 | ||
Teck Resources, Ltd. | Albertsons LLC Term Loan B6 | ||||||
3.750% due 02/01/23 | 1,015 | 1,000 | 4.302% due 06/23/23 (Ê) | 1,005 | 1,009 | ||
6.125% due 10/01/35 | 700 | 740 | American Airlines, Inc. Term Loan B | ||||
Telecom Italia Capital SA | 2.993% due 06/26/20 | 960 | 960 | ||||
6.375% due 11/15/33 | 440 | 461 | American Builders & Contractors Supply | ||||
7.200% due 07/18/36 | 420 | 463 | Co., Inc. Term Loan B | ||||
7.721% due 06/04/38 | 440 | 507 | 3.742% due 09/23/23 (Ê) | 960 | 966 | ||
Telefonica Emisiones SAU | Berry Plastics Corp. 1st Lien Term | ||||||
5.134% due 04/27/20 | 250 | 270 | Loan I | ||||
Tengizchevroil Finance Co. International, | 3.493% due 10/01/22 (Ê) | 436 | 439 | ||||
Ltd. | 3.524% due 10/01/22 (Ê) | 347 | 349 | ||||
4.000% due 08/15/26 (Þ) | 1,355 | 1,310 | Boyd Gaming Corp. Term Loan B2 | ||||
Tesco PLC | 3.445% due 03/06/24 | 671 | 673 | ||||
6.150% due 11/15/37 (Þ) | 525 | 535 | Charter Communications Operating LLC | ||||
Teva Pharmaceutical Finance | 1st Lien Term Loan | ||||||
Netherlands III BV | 3.247% due 01/15/24 (Ê) | 1,063 | 1,068 | ||||
2.800% due 07/21/23 | 3,240 | 3,120 | CSC Holdings LLC Term Loan B | ||||
3.150% due 10/01/26 | 5,325 | 4,957 | 3.876% due 10/31/24 (Ê) | 1,039 | 1,037 | ||
Toronto-Dominion Bank (The) | CWGS Group LLC Term Loan |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 393
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.743% due 11/08/23 (Ê) | 509 | 511 | Series 2007-2 Class AJ | ||||
First Data Corp. 1st Lien Term Loan | 5.810% due 04/10/49 | 860 | 822 | ||||
3.491% due 04/21/24 | 1,416 | 1,416 | Series 2007-3 Class AJ | ||||
HCA, Inc. Term Loan B8 | 5.732% due 06/10/49 | 2,161 | 2,173 | ||||
3.243% due 02/15/24 | 1,145 | 1,156 | Banc of America Funding Corp. | ||||
Hilton Worldwide Finance LLC Term | Series 2015-R3 Class 1A2 | ||||||
Loan B2 | 0.724% due 03/27/36 (Ê)(Þ) | 5,775 | 3,445 | ||||
2.990% due 10/25/23 (Ê) | 1,056 | 1,064 | |||||
Banc of America Funding Trust | |||||||
Landry's, Inc. Term Loan B | Series 2005-D Class A1 | ||||||
3.733% due 09/22/23 (Ê) | 948 | 949 | 2.997% due 05/25/35 (Ê) | 4,172 | 4,325 | ||
Lions Gate Enterntainment, Inc. 1st Lien | |||||||
Term Loan | Series 2010-R5 Class 4A1 | ||||||
3.982% due 10/12/23 | 768 | 772 | 2.790% due 08/26/36 (Ê)(Þ) | 1,175 | 1,179 | ||
�� | Banc of America Mortgage Securities, | ||||||
MacDermid, Inc. Term Loan B4 | Inc. | ||||||
5.000% due 06/07/23 (Ê) | 4,349 | 4,367 | |||||
MGM Growth Properties Operating | Series 2004-11 Class 2A1 | ||||||
Partnership, LP Term Loan B | 5.750% due 01/25/35 | 258 | 262 | ||||
3.493% due 04/25/23 (Ê) | 665 | 666 | Banc of America Mortgage Trust | ||||
MultiPlan, Inc. Term Loan B | Series 2005-D Class 2A7 | ||||||
5.000% due 05/25/23 (Ê) | 992 | 1,005 | 3.195% due 05/25/35 (Ê) | 896 | 850 | ||
Petco Animal Supplies, Inc. 1st Lien | Banc of America Re-REMIC Trust | ||||||
Term Loan B1 | Series 2010-UB5 Class A4A | ||||||
4.172% due 01/26/23 | 808 | 730 | 5.701% due 02/17/51 (Þ) | 301 | 301 | ||
PetSmart, Inc. Term Loan B2 | Bayview Commercial Asset Trust | ||||||
4.000% due 03/10/22 (Ê) | 1,075 | 983 | Series 2006-2A Class A2 | ||||
Pharmaceutical Product Development | 0.872% due 07/25/36 (Ê)(Þ) | 1,785 | 1,650 | ||||
LLC Term Loan B | |||||||
4.250% due 08/18/22 (Ê) | 1,181 | 1,187 | BCAP LLC Trust | ||||
Prime Security Services Borrower LLC | Series 2009-RR11 Class 7A1 | ||||||
Term Loan B1 | 2.893% due 02/26/36 (Ê)(Þ) | 130 | 130 | ||||
4.250% due 05/02/22 (Ê) | 1,277 | 1,289 | Series 2010-RR7 Class 3A1 | ||||
RPI Finance Trust Term Loan B6 | 2.941% due 08/26/35 (Ê)(Þ) | 326 | 325 | ||||
3.647% due 03/07/23 | 1,104 | 1,108 | Series 2010-RR7 Class 3A12 | ||||
Sungard Availability Services Capital, | 2.941% due 08/26/35 (Ê)(Þ) | 6,911 | 5,172 | ||||
Inc. Term Loan B | Series 2011-R11 Class 15A1 | ||||||
6.000% due 03/31/19 (Ê) | 2,841 | 2,805 | 3.070% due 10/26/33 (Å)(Ê) | 2,108 | 2,123 | ||
Virgin Media Bristol LLC 1st Lien Term | |||||||
Loan I | Series 2011-R11 Class 20A5 | ||||||
3.743% due 01/31/25 (Ê) | 876 | 879 | 3.094% due 03/26/35 (Ê)(Þ) | 689 | 688 | ||
Zebra Technologies Corp. 1st Lien Term | Series 2011-R11 Class 29A4 | ||||||
Loan B | 3.031% due 02/26/36 (Ê)(Þ) | 1,102 | 1,107 | ||||
3.600% due 10/27/21 (Ê) | 547 | 552 | Series 2014-RR3 Class 5A2 | ||||
29,102 | 0.920% due 10/26/36 (Þ) | 5,175 | 4,211 | ||||
Mortgage-Backed Securities - 20.4% | Bear Stearns Adjustable Rate Mortgage | ||||||
Trust | |||||||
225 Liberty Street Trust | Series 2003-8 Class 4A1 | ||||||
Series 2016-225L Class A | 2.904% due 01/25/34 (Ê) | — | — | ||||
3.597% due 02/10/36 (Þ) | 975 | 1,009 | |||||
Series 2004-5 Class 2A | |||||||
A10 Securitization LLC | 3.465% due 07/25/34 (Ê) | 474 | 471 | ||||
Series 2016-1 Class C | Bear Stearns Alterative-A Trust | ||||||
5.750% due 03/15/35 (Å) | 4,391 | 4,321 | |||||
Series 2005-4 Class 24A1 | |||||||
Alternative Loan Trust | 3.535% due 05/25/35 | 3,443 | 3,511 | ||||
Series 2005-J13 Class 2A7 | CFCRE Commercial Mortgage Trust | ||||||
5.500% due 11/25/35 | 352 | 316 | |||||
Series 2016-C3 Class A3 | |||||||
Series 2006-13T1 Class A3 | 3.865% due 01/10/48 | 6,630 | 6,961 | ||||
6.000% due 05/25/36 | 2,736 | 2,112 | |||||
BAMLL Commercial Mortgage Securities | CGBAM Commercial Mortgage Trust | ||||||
Trust | Series 2016-IMC Class E | ||||||
Series 2014-520M Class A | 8.172% due 11/15/21 (Ê)(Þ) | 3,560 | 3,526 | ||||
4.325% due 08/15/46 (Þ) | 660 | 703 | CHL Mortgage Pass-Through Trust | ||||
Banc of America Commercial Mortgage | Series 2004-11 Class 2A1 | ||||||
Trust |
See accompanying notes which are an integral part of the financial statements.
394 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.650% due 07/25/34 (Ê) | 1,336 | 1,333 | 1.025% due 11/30/37 (Ê)(Þ) | 5,450 | 3,488 | ||
Series 2006-14 Class A4 | DBJPM Mortgage Trust | ||||||
6.250% due 09/25/36 | 2,018 | 1,751 | Series 2016-C3 Class A5 | ||||
Series 2007-4 Class 1A10 | 2.890% due 09/10/49 | 1,630 | 1,599 | ||||
6.000% due 05/25/37 | 3,616 | 2,993 | DBUBS Mortgage Trust | ||||
Citigroup Commercial Mortgage Trust | Series 2011-LC3A Class C | ||||||
Series 2013-375P Class A | 5.510% due 08/10/44 (Þ) | 720 | 786 | ||||
3.251% due 05/10/35 (Þ) | 2,330 | 2,395 | Deutsche Mortgage Securities, Inc. Re- | ||||
Series 2013-375P Class D | REMIC Trust | ||||||
3.635% due 05/10/35 (Þ) | 3,810 | 3,775 | Series 2007-WM1 Class A1 | ||||
Series 2015-GC29 Class C | 4.078% due 06/27/37 (Ê)(Þ) | 4,574 | 4,604 | ||||
4.293% due 04/10/48 | 650 | 634 | EQTY Mortgage Trust | ||||
Series 2015-GC29 Class D | Series 2014-INNS Class E | ||||||
3.110% due 04/10/48 (Þ) | 520 | 381 | 3.954% due 05/08/31 (Ê)(Þ) | 3,460 | 3,468 | ||
Citigroup Mortgage Loan Trust, Inc. | Fannie Mae | ||||||
Series 2005-11 Class A2A | 3.170% due 2018 | 6,787 | 6,866 | ||||
2.930% due 10/25/35 (Ê) | 65 | 65 | 3.766% due 2020 | 5,364 | 5,641 | ||
3.500% due 2021 | 150 | 157 | |||||
Series 2007-AR8 Class 2A1A | 3.840% due 2021 | 3,664 | 3,895 | ||||
3.165% due 07/25/37 (Ê) | 1,046 | 950 | |||||
3.890% due 2021 | 1,810 | 1,925 | |||||
Series 2012-7 Class 10A2 | |||||||
3.206% due 09/25/36 (Å)(Ê) | 2,169 | 2,006 | 4.363% due 2021 | 5,635 | 6,025 | ||
5.500% due 2021 | 56 | 59 | |||||
Series 2015-2 Class 5A1 | 2.500% due 2022 | 2,762 | 2,817 | ||||
0.444% due 03/25/47 (Ê)(Þ) | 3,041 | 2,869 | 2.820% due 2022 | 2,471 | 2,547 | ||
Commercial Mortgage Trust | 2.830% due 2022 | 2,272 | 2,342 | ||||
Series 2007-C9 Class AJ | 2.860% due 2022 | 1,298 | 1,336 | ||||
5.650% due 12/10/49 | 987 | 993 | 5.500% due 2022 | 229 | 242 | ||
Series 2013-300P Class A1 | 2.000% due 2023 | 8,494 | 8,530 | ||||
4.353% due 08/10/30 (Þ) | 1,900 | 2,074 | 4.500% due 2023 | 39 | 42 | ||
Series 2013-CR6 Class B | 5.500% due 2023 | 157 | 168 | ||||
3.397% due 03/10/46 (Þ) | 1,355 | 1,360 | 2.500% due 2024 | 5,045 | 5,145 | ||
Series 2014-277P Class A | 4.000% due 2024 | 44 | 46 | ||||
3.732% due 08/10/49 (Þ) | 2,140 | 2,238 | 5.500% due 2024 | 355 | 381 | ||
Series 2015-3BP Class A | 4.000% due 2025 | 1,530 | 1,615 | ||||
3.178% due 02/10/35 (Þ) | 2,060 | 2,082 | 4.500% due 2025 | 31 | 33 | ||
Series 2015-CR24 Class D | 5.500% due 2025 | 437 | 457 | ||||
3.463% due 08/10/55 | 180 | 139 | 3.500% due 2026 | 1,500 | 1,570 | ||
Series 2015-LC19 Class A4 | 4.000% due 2026 | 613 | 647 | ||||
3.183% due 02/10/48 | 1,232 | 1,248 | 4.500% due 2026 | 106 | 120 | ||
Series 2016-787S Class A | 5.500% due 2026 | 98 | 109 | ||||
3.545% due 02/10/36 (Þ) | 975 | 1,006 | 2.500% due 2027 | 3,105 | 3,166 | ||
Series 2016-GCT Class A | 2.964% due 2027 | 3,912 | 3,937 | ||||
2.681% due 08/10/29 (Þ) | 971 | 981 | 3.000% due 2027 | 1,651 | 1,704 | ||
Countrywide Alternative Loan Trust | 3.080% due 2027 | 910 | 925 | ||||
Series 2007-15CB Class A5 | 4.500% due 2027 | 408 | 462 | ||||
5.750% due 07/25/37 | 369 | 318 | 4.500% due 2027 | 1,592 | 1,633 | ||
Series 2007-15CB Class A7 | 5.500% due 2027 | 39 | 44 | ||||
6.000% due 07/25/37 | 1,045 | 919 | 3.500% due 2028 | 1,455 | 1,524 | ||
Credit Suisse Mortgage Trust | 3.500% due 2030 | 1,388 | 1,452 | ||||
Series 2014-11R Class 9A2 | 2.600% due 2031 | 1,680 | 1,579 | ||||
0.674% due 10/27/36 (Ê)(Þ) | 2,920 | 1,751 | 5.000% due 2031 | 3,304 | 3,626 | ||
CSAIL Commercial Mortgage Trust | 3.500% due 2032 | 1,978 | 2,068 | ||||
Series 2015-C3 Class A3 | 3.000% due 2033 | 4,402 | 4,536 | ||||
3.447% due 08/15/48 | 270 | 276 | 3.500% due 2033 | 3,588 | 3,752 | ||
Series 2015-C4 Class E | 5.500% due 2034 | 725 | 812 | ||||
3.738% due 11/15/48 | 3,610 | 2,528 | 4.500% due 2035 | 3,508 | 3,815 | ||
CSMC Trust | 5.500% due 2035 | 475 | 532 | ||||
Series 2015-12R Class 2A2 | 6.000% due 2035 | 466 | 535 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 395
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.000% due 2036 | 49 | 52 | Interest Only STRIP | ||||
5.500% due 2036 | 976 | 1,091 | 5.500% due 04/25/36 | 153 | 33 | ||
4.000% due 2037 | 55 | 58 | Fannie Mae Connecticut Avenue | ||||
5.500% due 2037 | 296 | 330 | Securities | ||||
5.500% due 2038 | 60 | 67 | Series 2016-C04 Class 1M2 | ||||
4.500% due 2039 | 463 | 500 | 4.842% due 01/25/29 (Ê) | 4,980 | 5,415 | ||
6.000% due 2039 | 398 | 450 | Fannie Mae Grantor Trust | ||||
6.000% due 2039 | 512 | 594 | Series 2001-T4 Class A1 | ||||
4.500% due 2040 | 154 | 166 | 7.500% due 07/25/41 | 1,820 | 2,137 | ||
5.500% due 2040 | 5,303 | 5,955 | Fannie Mae REMICS | ||||
4.000% due 2041 | 853 | 901 | Series 1997-68 Class SC | ||||
4.500% due 2041 | 1,034 | 1,176 | Interest Only STRIP | ||||
4.500% due 2041 | 677 | 730 | 7.945% due 05/18/27 (Å)(Ê) | 21 | 3 | ||
5.000% due 2041 | 3,369 | 3,693 | Series 2001-4 Class SA | ||||
3.000% due 2042 | 4,421 | 4,442 | Interest Only STRIP | ||||
3.500% due 2043 | 4,039 | 4,166 | 6.999% due 02/17/31 (Å)(Ê) | — | — | ||
3.500% due 2045 | 11,339 | 11,684 | Series 2003-25 Class IK | ||||
4.000% due 2045 | 7,485 | 7,918 | Interest Only STRIP | ||||
3.000% due 2046 | 4,124 | 4,126 | 7.000% due 04/25/33 (Å) | 54 | 10 | ||
3.500% due 2046 | 5,330 | 5,486 | Series 2003-32 Class UI | ||||
4.000% due 2046 | 13,478 | 14,288 | Interest Only STRIP | ||||
4.500% due 2046 | 4,094 | 4,482 | 6.000% due 05/25/33 (Å) | 47 | 12 | ||
3.000% due 2047 | 5,156 | 5,168 | Series 2003-33 Class IA | ||||
4.000% due 2056 | 4,937 | 5,250 | Interest Only STRIP | ||||
15 Year TBA(Ï) | 6.500% due 05/25/33 (Å) | 261 | 67 | ||||
2.500% | 3,300 | 3,319 | Series 2003-35 Class FY | ||||
3.000% | 3,300 | 3,394 | 0.984% due 05/25/18 (Ê) | 79 | 79 | ||
3.500% | 1,000 | 1,045 | Series 2003-35 Class IU | ||||
30 Year TBA(Ï) | Interest Only STRIP | ||||||
2.500% | 9,790 | 9,404 | 6.000% due 05/25/33 (Å) | 46 | 10 | ||
3.000% | 105,310 | 105,015 | |||||
4.000% | 15,000 | 15,799 | Series 2003-35 Class UI | ||||
Interest Only STRIP | |||||||
Series 1997-281 | 6.500% due 05/25/33 (Å) | 58 | 14 | ||||
Interest Only STRIP | Series 2003-64 Class JI | ||||||
9.000% due 11/25/26 (Å) | 13 | 3 | |||||
Interest Only STRIP | |||||||
Series 2000-306 | 6.000% due 07/25/33 (Å) | 27 | 6 | ||||
Interest Only STRIP | Series 2004-W11 Class 1A2 | ||||||
8.000% due 05/25/30 (Å) | 14 | 4 | 6.500% due 05/25/44 | 3 | 3 | ||
Series 2001-317 | Series 2005-117 Class LC | ||||||
Interest Only STRIP | 5.500% due 11/25/35 | 1,476 | 1,580 | ||||
8.000% due 12/25/31 (Å) | 21 | 6 | Series 2006-118 Class A1 | ||||
Series 2002-320 | 0.644% due 12/25/36 (Å)(Ê) | 47 | 46 | ||||
Interest Only STRIP | Series 2007-73 Class A1 | ||||||
7.000% due 04/25/32 (Å) | 6 | 2 | 0.644% due 07/25/37 (Å)(Ê) | 459 | 450 | ||
Series 2003-343 Class 6 | Series 2009-39 Class LB | ||||||
Interest Only STRIP | 4.500% due 06/25/29 | — | — | ||||
5.000% due 10/25/33 | 362 | 70 | Series 2009-70 Class PS | ||||
Series 2003-345 Class 18 | Interest Only STRIP | ||||||
Interest Only STRIP | 6.166% due 01/25/37 (Ê) | 8,527 | 1,683 | ||||
4.500% due 12/25/18 | 193 | 5 | Series 2009-96 Class DB | ||||
Series 2003-345 Class 19 | 4.000% due 11/25/29 | 2,880 | 3,056 | ||||
Interest Only STRIP | Series 2010-95 Class S | ||||||
4.500% due 01/25/19 | 201 | 5 | Interest Only STRIP | ||||
Series 2005-365 Class 12 | 6.016% due 09/25/40 (Ê) | 8,288 | 1,638 | ||||
Interest Only STRIP | Series 2013-111 Class PL | ||||||
5.500% due 12/25/35 | 1,071 | 204 | 2.000% due 12/25/42 | 3,641 | 3,375 | ||
Series 2006-369 Class 8 | Series 2013-119 Class NT |
See accompanying notes which are an integral part of the financial statements.
396 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.000% due 12/25/43 | 3,600 | 3,811 | 1.142% due 03/25/23 (Ê) | 7,598 | 7,622 | ||
Series 2015-43 Class PA | Federal Home Loan Mortgage Corp. | ||||||
3.500% due 01/25/43 | 1,977 | 2,045 | Structured Pass-Through Securities | ||||
Series 2016-8 Class FA | Series 2003-56 Class A5 | ||||||
1.221% due 03/25/46 (Ê) | 3,945 | 3,950 | 5.231% due 05/25/43 | 25 | 28 | ||
First Horizon Mortgage Pass-Through | |||||||
Series 2016-23 Class ST | Trust | ||||||
Interest Only STRIP | Series 2005-AR4 Class 2A1 | ||||||
5.416% due 11/25/45 (Ê) | 3,731 | 817 | 2.902% due 10/25/35 (Ê) | 1,058 | 878 | ||
Series 2016-40 Class FA | Freddie Mac | ||||||
1.641% due 07/25/46 | 5,378 | 5,447 | 4.500% due 2018 | 4,795 | 4,920 | ||
Series 2016-60 Class QS | 4.500% due 2020 | 13,571 | 13,929 | ||||
Interest Only STRIP | 8.500% due 2025 | 6 | 6 | ||||
5.516% due 09/25/46 (Ê) | 1,322 | 238 | 3.500% due 2027 | 2,185 | 2,288 | ||
Series 2016-61 Class BS | 8.500% due 2027 | 36 | 42 | ||||
Interest Only STRIP | 3.500% due 2030 | 1,204 | 1,263 | ||||
5.516% due 09/25/46 (Ê) | 3,672 | 613 | 3.000% due 2031 | 2,351 | 2,422 | ||
Series 2017-3 Class FA | 3.000% due 2035 | 390 | 398 | ||||
1.491% due 02/25/47 | 7,497 | 7,533 | 3.500% due 2035 | 2,056 | 2,146 | ||
Series 2017-6 Class PA | 5.000% due 2035 | 37 | 41 | ||||
3.500% due 06/25/46 | 14,070 | 14,604 | 3.000% due 2036 | 1,791 | 1,831 | ||
Fannie Mae-Aces | 4.000% due 2036 | 101 | 107 | ||||
Series 2012-M8 Class ASQ2 | 6.000% due 2038 | 1,452 | 1,654 | ||||
1.520% due 12/25/19 | 3,461 | 3,462 | 4.500% due 2039 | 6,069 | 6,625 | ||
Series 2014-M13 Class AB2 | 5.500% due 2039 | 885 | 982 | ||||
2.951% due 08/25/24 | 3,608 | 3,599 | 5.500% due 2040 | 1,314 | 1,458 | ||
Series 2015-M11 Class A1 | 4.000% due 2041 | 8,157 | 8,667 | ||||
2.097% due 04/25/25 | 4,254 | 4,205 | 5.500% due 2041 | 1,862 | 2,095 | ||
Series 2015-M15 Class ASQ1 | 3.500% due 2043 | 3,125 | 3,227 | ||||
0.849% due 01/25/19 | 1,257 | 1,256 | 4.000% due 2044 | 5,230 | 5,544 | ||
Series 2016-M2 Class ABV2 | 3.500% due 2045 | 21,559 | 22,285 | ||||
2.131% due 01/25/23 | 3,688 | 3,641 | 4.000% due 2045 | 4,494 | 4,736 | ||
Series 2016-M3 Class ASQ2 | 4.000% due 2046 | 14,090 | 14,890 | ||||
2.263% due 02/25/23 | 5,170 | 5,095 | 4.500% due 2046 | 771 | 834 | ||
Series 2016-M6 Class AB2 | 3.000% due 2047 | 4,742 | 4,749 | ||||
2.395% due 05/25/26 | 4,800 | 4,533 | 4.000% due 2047 | 6,377 | 6,719 | ||
Series 2016-M7 Class AV2 | 30 Year TBA(Ï) | ||||||
2.157% due 10/25/23 | 11,995 | 11,760 | 3.000% | 4,900 | 4,894 | ||
FDIC Trust | 3.500% | 5,100 | 5,244 | ||||
4.000% | 2,400 | 2,526 | |||||
Series 2010-R1 Class A | Freddie Mac Multifamily Structured | ||||||
2.184% due 05/25/50 (Þ) | 22 | 22 | Pass-Through Certificates | ||||
Series 2011-R1 Class A | Series 2013-K024 Class A2 | ||||||
2.672% due 07/25/26 (Þ) | 101 | 102 | 2.573% due 09/25/22 | 8,350 | 8,478 | ||
Federal Home Loan Mortgage Corp. | |||||||
Multifamily Structured Pass-Through | Series 2013-K029 Class A2 | ||||||
Certificates | 3.320% due 02/25/23 | 7,940 | 8,350 | ||||
Series 2015-K044 Class A2 | Series 2015-K047 Class A2 | ||||||
2.811% due 01/25/25 | 3,050 | 3,087 | 3.329% due 05/25/25 | 5,170 | 5,415 | ||
Series 2015-K050 Class A2 | Series 2015-K048 Class A2 | ||||||
3.334% due 08/25/25 | 8,590 | 8,996 | 3.284% due 06/25/25 | 8,750 | 9,130 | ||
Series 2016-K053 Class A2 | Series 2015-K049 Class A2 | ||||||
2.995% due 12/25/25 | 9,655 | 9,854 | 3.010% due 08/25/25 | 10,000 | 10,238 | ||
Series 2016-K058 Class X1 | Series 2015-K051 Class A2 | ||||||
Interest Only STRIP | 3.308% due 09/25/25 | 7,730 | 8,082 | ||||
0.931% due 08/25/26 | 25,215 | 1,772 | Series 2016-K052 Class A2 | ||||
Series 2016-KF15 Class A | 3.151% due 11/25/25 | 7,490 | 7,739 | ||||
1.262% due 02/25/23 (Ê) | 12,403 | 12,484 | Freddie Mac Reference REMIC | ||||
Series 2016-KF17 Class A | Series 2006-R007 Class ZA | ||||||
6.000% due 05/15/36 | 1,758 | 1,985 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 397
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Freddie Mac REMICS | Freddie Mac Whole Loan Securities | |||||||
Series 1999-2129 Class SG | Trust | |||||||
Interest Only STRIP | Series 2016-SC01 Class M1 | |||||||
6.450% due 06/17/27 (Å)(Ê) | 388 | 66 | 3.883% due 07/25/46 | 1,333 | 1,321 | |||
Series 2000-2247 Class SC | Ginnie Mae | |||||||
Interest Only STRIP | Series 1999-27 | |||||||
6.962% due 08/15/30 (Å)(Ê) | 14 | 2 | Interest Only STRIP | |||||
Series 2002-2463 Class SJ | 8.058% due 08/16/29 (Å)(Ê) | 51 | 11 | |||||
Interest Only STRIP | Series 2012-135 | |||||||
7.462% due 03/15/32 (Å)(Ê) | 32 | 8 | Interest Only STRIP | |||||
Series 2003-2610 Class UI | 0.611% due 01/16/53 | 14,176 | 561 | |||||
Interest Only STRIP | Series 2014-190 | |||||||
6.500% due 05/15/33 (Å) | 8 | 1 | 3.500% due 12/20/44 | 4,959 | 5,297 | |||
Series 2003-2624 Class QH | Series 2016-21 | |||||||
5.000% due 06/15/33 | 498 | 548 | Interest Only STRIP | |||||
Series 2003-2649 Class IM | 5.588% due 02/20/46 (Ê) | 2,667 | 460 | |||||
Interest Only STRIP | Ginnie Mae I | |||||||
7.000% due 07/15/33 (Å) | 73 | 20 | 2.140% due 2023 | 2,983 | 2,938 | |||
4.500% due 2039 | 9,921 | 10,824 | ||||||
Series 2003-2725 Class TA | ||||||||
4.500% due 12/15/33 | 1,300 | 1,444 | 5.000% due 2039 | 3,965 | 4,392 | |||
4.500% due 2040 | 1,204 | 1,294 | ||||||
Series 2011-3963 Class JB | 4.500% due 2041 | 2,135 | 2,290 | |||||
4.500% due 11/15/41 | 3,500 | 3,885 | 4.500% due 2042 | 208 | 223 | |||
Series 2012-3997 Class PB | 3.000% due 2043 | 1,087 | 1,104 | |||||
4.000% due 02/15/42 | 4,000 | 4,246 | ||||||
Ginnie Mae II | ||||||||
Series 2012-4045 Class HD | 3.000% due 2046 | 2,864 | 2,906 | |||||
4.500% due 07/15/41 | 2,193 | 2,369 | 3.500% due 2046 | 3,611 | 3,757 | |||
Series 2013-4233 Class MD | 3.500% due 2047 | 2,495 | 2,595 | |||||
1.750% due 03/15/25 | 1,191 | 1,191 | ||||||
30 Year TBA(Ï) | ||||||||
Series 2014-4423 Class VB | 3.000% | 8,300 | 8,412 | |||||
3.500% due 06/15/33 | 1,090 | 1,132 | 3.500% | 11,500 | 11,949 | |||
Series 2016-4628 Class PF | ||||||||
1.494% due 11/15/46 | 3,664 | 3,691 | GMACM Mortgage Loan Trust | |||||
Series 2005-AR2 Class 4A | ||||||||
Freddie Mac Strips | 3.405% due 05/25/35 (Ê) | 52 | 49 | |||||
Series 1998-191 Class IO | Government National Mortgage | |||||||
Interest Only STRIP | Association | |||||||
8.000% due 01/01/28 (Å) | 13 | 3 | Series 2016-47 Class CB | |||||
Series 1998-194 Class IO | 4.000% due 04/20/46 | 2,461 | 2,625 | |||||
Interest Only STRIP | Series 2016-82 Class PC | |||||||
6.500% due 04/01/28 (Å) | 30 | 6 | 3.500% due 06/20/46 | 3,355 | 3,325 | |||
Series 2001-212 Class IO | Series 2016-84 Class IG | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
6.000% due 05/01/31 (Å) | 31 | 7 | 4.500% due 11/16/45 | 1,283 | 260 | |||
Series 2001-215 Class IO | Series 2016-135 Class SB | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
8.000% due 06/15/31 (Å) | 32 | 9 | 5.558% due 10/16/46 (Ê) | 373 | 84 | |||
Series 2012-271 Class 30 | GS Mortgage Securities Trust | |||||||
3.000% due 08/15/42 | 6,615 | 6,570 | Series 2013-GC14 Class AS | |||||
Series 2014-334 Class S7 | 4.507% due 08/10/46 (Þ) | 1,630 | 1,766 | |||||
Interest Only STRIP | Series 2015-GS1 Class C | |||||||
5.562% due 08/15/44 (Ê) | 1,418 | 308 | 4.570% due 11/10/48 | 780 | 791 | |||
Freddie Mac Structured Agency Credit | GSMPS Mortgage Loan Trust | |||||||
Risk Debt Notes | ||||||||
Zero coupon due 03/25/29 | 1,890 | 1,906 | Series 2006-RP1 Class 1A2 | |||||
7.500% due 01/25/36 (Þ) | 12 | 13 | ||||||
Series 2017-DNA1 Class B1 | ||||||||
5.729% due 07/25/29 (Ê) | 830 | 841 | Series 2006-RP1 Class 1A3 | |||||
8.000% due 01/25/36 (Þ) | 21 | 22 | ||||||
Series 2017-DNA1 Class M2 | ||||||||
4.028% due 07/25/29 (Ê) | 1,940 | 1,979 | Hilton USA Trust | |||||
Series 2016-HHV Class D |
See accompanying notes which are an integral part of the financial statements.
398 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.194% due 11/05/38 (Þ) | 9,138 | 8,797 | Series 2007-IQ15 Class A4 | ||||
Hudsons Bay Simon JV Trust | 6.098% due 06/11/49 | 1,196 | 1,200 | ||||
Series 2015-HB7 Class A7 | Series 2007-IQ16 Class AM | ||||||
3.914% due 08/05/34 (Þ) | 3,403 | 3,497 | 6.256% due 12/12/49 | 7,758 | 7,876 | ||
IndyMac INDA Mortgage Loan Trust | Series 2007-T25 Class AJ | ||||||
Series 2007-AR1 Class 1A1 | 5.574% due 11/12/49 | 2,054 | 2,074 | ||||
3.186% due 03/25/37 (Ê) | 1,513 | 1,467 | Series 2008-T29 Class AM | ||||
JPMBB Commercial Mortgage Securities | 6.477% due 01/11/43 | 4,950 | 5,057 | ||||
Trust | Series 2015-MS1 Class A4 | ||||||
Series 2013-C14 Class AS | 3.779% due 05/15/48 | 1,360 | 1,429 | ||||
4.409% due 08/15/46 | 1,780 | 1,907 | |||||
JPMorgan Chase Commercial Mortgage | Series 2016-UBS9 Class A4 | ||||||
3.594% due 03/15/49 | 1,425 | 1,478 | |||||
Securities Trust | Mortgage Repurchase Agreement | ||||||
Series 2004-LN2 Class B | Financing Trust | ||||||
5.446% due 07/15/41 | 1,550 | 1,534 | Series 2016-4 Class A1 | ||||
Series 2015-MAR7 Class E | 1.864% due 05/10/19 (Ê)(Þ) | 2,400 | 2,400 | ||||
5.962% due 06/05/32 (Þ) | 3,000 | 2,978 | MSCG Trust | ||||
JPMorgan Mortgage Trust | Series 2015-ALDR Class A2 | ||||||
Series 2005-A4 Class 1A1 | 3.577% due 06/07/35 (Þ) | 1,435 | 1,432 | ||||
2.991% due 07/25/35 (Ê) | 313 | 311 | New Residential Mortgage Loan Trust | ||||
Series 2013-1 Class 2A2 | Series 2016-3A Class A1B | ||||||
2.500% due 03/25/43 (Þ) | 3,760 | 3,744 | 3.250% due 09/25/56 (Þ) | 1,415 | 1,433 | ||
JPMorgan Resecuritization Trust | Nomura Resecuritization Trust | ||||||
Series 2009-5 Class 2A2 | Series 2013-1R Class 3A12 | ||||||
2.064% due 01/26/37 (Ê)(Þ) | 5,460 | 4,860 | 0.694% due 10/26/36 (Ê)(Þ) | 2,389 | 2,287 | ||
Series 2010-6 Class 2A1 | Series 2014-1R Class 5A3 | ||||||
3.041% due 08/26/35 (Ê)(Þ) | 1,052 | 1,057 | 0.684% due 10/26/36 (Ê)(Þ) | 4,173 | 3,524 | ||
LB-Commercial Mortgage Trust | Series 2015-4R Class 1A14 | ||||||
Series 2007-C3 Class AJ | 0.739% due 03/26/47 (Ê)(Þ) | 5,270 | 3,476 | ||||
6.116% due 07/15/44 | 2,440 | 2,412 | Series 2015-8R Class 2A2 | ||||
Series 2007-C3 Class AM | 0.674% due 10/26/36 (Ê)(Þ) | 3,226 | 2,207 | ||||
6.116% due 07/15/44 | 4,780 | 4,794 | Series 2015-8R Class 4A4 | ||||
LB-UBS Commercial Mortgage Trust | 1.369% due 11/25/47 (Þ) | 7,732 | 3,534 | ||||
Series 2007-C7 Class AJ | Series 2015-11R Class 3A2 | ||||||
6.449% due 09/15/45 | 4,830 | 4,915 | 2.747% due 05/25/36 (Þ) | 1,272 | 1,228 | ||
Merrill Lynch Mortgage Investors Trust | One Market Plaza Trust | ||||||
Series 2005-A9 Class 2A1C | Series 2017-1MKT Class C | ||||||
3.053% due 12/25/35 (Ê) | 3,167 | 3,074 | 4.016% due 02/10/32 (Þ) | 1,041 | 1,089 | ||
ML-CFC Commercial Mortgage Trust | Series 2017-1MKT Class D | ||||||
Series 2007-5 | 4.146% due 02/10/32 (Þ) | 2,675 | 2,712 | ||||
5.450% due 08/12/48 (Þ) | 1,269 | 1,069 | Series 2017-1MKT Class E | ||||
Series 2007-5 Class AJ | 4.142% due 02/10/32 (Å) | 4,080 | 4,017 | ||||
5.450% due 08/12/48 | 1,282 | 1,080 | |||||
Morgan Stanley Bank of America Merrill | RBS Commercial Funding, Inc. Trust | ||||||
Lynch Trust | Series 2013-GSP Class A | ||||||
Series 2015-C24 Class A4 | 3.834% due 01/13/32 (Þ) | 1,055 | 1,120 | ||||
3.732% due 05/15/48 | 1,000 | 1,043 | RBSSP Resecuritization Trust | ||||
Series 2015-C26 Class A3 | Series 2010-3 Class 9A1 | ||||||
3.211% due 10/15/48 | 5,055 | 5,121 | 5.500% due 02/26/35 (Þ) | 71 | 71 | ||
Series 2016-C31 Class A1 | Series 2010-12 Class 7A3 | ||||||
1.511% due 11/15/21 | 2,648 | 2,617 | 4.000% due 12/27/35 (Þ) | 508 | 507 | ||
Morgan Stanley Bank of America | Sequoia Mortgage Trust | ||||||
Mortgage Trust | 2.500% due 05/25/43 (Þ) | 2,352 | 2,272 | ||||
Series 2016-C31 Class C | Series 2013-2 Class A | ||||||
4.322% due 11/15/49 | 770 | 760 | 1.874% due 02/25/43 | 3,203 | 3,071 | ||
Morgan Stanley Capital I Trust | Series 2013-4 Class A1 | ||||||
Series 2006-HQ8 Class C | 2.325% due 04/25/43 | 6,466 | 6,225 | ||||
5.589% due 03/12/44 | 1,405 | 1,363 | Series 2015-1 Class A1 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 399
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
3.500% due 01/25/45 (Þ) | 5,396 | 5,461 | 6.000% due 07/25/36 | 1,230 | 1,239 | |||
SG Commercial Mortgage Securities | Series 2006-11 Class A9 | |||||||
Trust | 6.500% due 09/25/36 | 524 | 507 | |||||
Series 2016-C5 Class A4 | Series 2006-13 Class A5 | |||||||
3.055% due 10/10/48 | 2,870 | 2,815 | 6.000% due 10/25/36 | 2,564 | 2,536 | |||
Structured Adjustable Rate Mortgage | ||||||||
Loan Trust | WFRBS Commercial Mortgage Trust | |||||||
Series 2004-12 Class 2A | Series 2012-C9 Class A1 | |||||||
2.735% due 09/25/34 (Ê) | 3,918 | 3,848 | 0.673% due 11/15/45 | 9 | 9 | |||
Structured Asset Mortgage Investments | Series 2013-C14 Class A1 | |||||||
II Trust | 0.836% due 06/15/46 | 98 | 98 | |||||
Series 2004-AR7 Class A1B | Series 2014-C19 Class A3 | |||||||
0.962% due 04/19/35 (Ê) | 499 | 467 | 3.660% due 03/15/47 | 1,780 | 1,856 | |||
Series 2004-AR8 Class A1 | Series 2014-C24 Class D | |||||||
1.242% due 05/19/35 (Ê) | 1,652 | 1,612 | 3.692% due 11/15/47 (Þ) | 930 | 598 | |||
Towd Point Mortgage Trust | 1,015,478 | |||||||
Series 2015-2 Class 2A1 | Municipal Bonds - 0.3% | |||||||
3.750% due 11/25/57 (Þ) | 1,910 | 1,954 | Municipal Electric Authority of Georgia | |||||
Series 2016-3 Class A1 | Revenue Bonds | |||||||
2.250% due 08/25/55 (Þ) | 3,070 | 3,050 | 6.637% due 04/01/57 | 4,755 | 5,598 | |||
UBS Barclays Commercial Mortgage | 7.055% due 04/01/57 | 4,445 | 4,805 | |||||
Trust | Rib Floater Trust Various States Revenue | |||||||
Series 2012-C3 Class A2 | Bonds | |||||||
1.852% due 08/10/49 | 2,133 | 2,134 | 0.970% due 08/15/22 (Ê)(Þ) | 2,885 | 2,885 | |||
Tender Option Bond Trust Receipts/ | ||||||||
Waldorf Astoria Boca Raton Trust | Certificates General Obligation | |||||||
Series 2016-BOCA Class E | Unlimited | |||||||
4.888% due 06/15/29 (Å)(Ê) | 4,000 | 4,011 | 1.240% due 08/01/49 (Ê)(Þ) | 3,000 | 3,000 | |||
Washington Mutual Mortgage Pass- | ||||||||
Through Certificates Trust | 16,288 | |||||||
Series 2004-AR1 Class A | Non-US Bonds - 4.0% | |||||||
2.783% due 03/25/34 (Ê) | 708 | 717 | Australia Government International | |||||
Series 2004-AR13 Class A1A | Bond | |||||||
1.304% due 11/25/34 (Ê) | 1,976 | 1,887 | Series 126 | |||||
4.500% due 04/15/20 | AUD | 16,630 | 13,411 | |||||
Series 2005-AR6 Class 2A1A | ||||||||
0.822% due 04/25/45 (Ê) | 4,377 | 4,124 | Series 133 | |||||
5.500% due 04/21/23 | AUD | 3,720 | 3,293 | |||||
Series 2006-AR10 Class 1A1 | ||||||||
2.821% due 09/25/36 (Ê) | 3,328 | 3,107 | Series 140 | |||||
4.500% due 04/21/33 | AUD | 7,370 | 6,573 | |||||
Series 2007-HY5 Class 3A1 | ||||||||
4.322% due 05/25/37 (Ê) | 2,968 | 2,707 | Brazil Notas do Tesouro Nacional | |||||
Series NTNB | ||||||||
Wells Fargo Commercial Mortgage Trust | 6.000% due 05/15/45 | BRL | 1,151 | 1,203 | ||||
Series 2015-NXS1 Class D | ||||||||
4.241% due 05/15/48 | 40 | 34 | Series NTNF | |||||
10.000% due 01/01/21 | BRL | 17,780 | 5,795 | |||||
Series 2016-BNK1 Class A3 | 10.000% due 01/01/23 | BRL | 24,011 | 7,765 | ||||
2.652% due 08/15/49 | 3,220 | 3,107 | 10.000% due 01/01/25 | BRL | 19,230 | 6,176 | ||
Series 2016-C37 Class C | ||||||||
4.495% due 12/15/49 | 960 | 978 | Colombian TES | |||||
Series B | ||||||||
Series 2017-RB1 Class XA | 10.000% due 07/24/24 | COP | 42,735,300 | 17,774 | ||||
1.446% due 03/15/50 | 9,073 | 906 | ||||||
Wells Fargo Mortgage Backed Securities | Ireland Government International Bond | |||||||
Trust | 5.400% due 03/13/25 | EUR | 7,580 | 11,262 | ||||
Series 2004-CC Class A1 | Malaysia Government International Bond | |||||||
2.888% due 01/25/35 (Ê) | 2,110 | 2,139 | Series 0116 | |||||
Series 2005-AR7 Class 2A1 | 3.800% due 08/17/23 | MYR | 23,900 | 5,469 | ||||
3.087% due 05/25/35 (Ê) | 738 | 729 | Series 0215 | |||||
Series 2005-AR8 Class 1A1 | 3.795% due 09/30/22 | MYR | 4,170 | 960 | ||||
2.947% due 06/25/35 (Ê) | 2,972 | 3,007 | Series 0314 | |||||
Series 2006-6 Class 1A8 | 4.048% due 09/30/21 | MYR | 6,770 | 1,578 | ||||
5.750% due 05/25/36 | 643 | 643 | Series 0315 | |||||
Series 2006-8 Class A15 | 3.659% due 10/15/20 | MYR | 50 | 12 |
See accompanying notes which are an integral part of the financial statements.
400 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Series 0414 | 8.150% due 02/03/27 | RUB | 175,010 | 3,219 | ||||||
3.654% due 10/31/19 | MYR | 11,660 | 2,699 | Series 6219 | ||||||
Series 0515 | 7.750% due 09/16/26 | RUB | 206,670 | 3,668 | ||||||
3.759% due 03/15/19 | MYR | 5,300 | 1,232 | Singapore Government International | ||||||
Mexican Bonos | Bond | |||||||||
1.625% due 10/01/19 | SGD | 490 | 354 | |||||||
Series M 20 | ||||||||||
7.500% due 06/03/27 | MXN | 11,443 | 620 | 2.000% due 07/01/20 | SGD | 1,060 | 773 | |||
2.250% due 06/01/21 | SGD | 2,730 | 2,008 | |||||||
Series M 30 | 1.250% due 10/01/21 | SGD | 620 | 439 | ||||||
10.000% due 11/20/36 | MXN | 77,430 | 5,116 | |||||||
8.500% due 11/18/38 | MXN | 79,910 | 4,647 | 3.125% due 09/01/22 | SGD | 2,270 | 1,740 | |||
2.750% due 07/01/23 | SGD | 2,650 | 1,995 | |||||||
Series M | 3.000% due 09/01/24 | SGD | 3,520 | 2,698 | ||||||
8.000% due 06/11/20 | MXN | 14,330 | 782 | |||||||
7.750% due 05/29/31 | MXN | 14,850 | 810 | 2.375% due 06/01/25 | SGD | 1,250 | 919 | |||
7.750% due 11/13/42 | MXN | 220,350 | 11,888 | 2.125% due 06/01/26 | SGD | 840 | 606 | |||
New Zealand Government International | 3.500% due 03/01/27 | SGD | 2,480 | 1,990 | ||||||
Bond | Titulos De Tesoreria B Bonds | |||||||||
Series 0423 | Series B | |||||||||
5.500% due 04/15/23 | NZD | 2,490 | 1,968 | 6.000% due 04/28/28 | COP | 5,795,400 | 1,897 | |||
Series 0427 | 200,527 | |||||||||
4.500% due 04/15/27 | NZD | 3,070 | 2,366 | United States Government Treasuries - 30.6% | ||||||
Series 0521 | United States Treasury Inflation Indexed | |||||||||
6.000% due 05/15/21 | NZD | 28,055 | 21,876 | Bonds | ||||||
Series 0925 | 1.375% due 07/15/18 | 26,612 | 27,311 | |||||||
2.000% due 09/20/25 | NZD | 3,990 | 2,895 | 2.125% due 01/15/19 | 15,726 | 16,430 | ||||
0.125% due 04/15/21 | 11,439 | 11,546 | ||||||||
Norway Government International Bond | 0.125% due 01/15/23 | 30,866 | 30,934 | |||||||
Series 473 | 0.375% due 07/15/25 | 5,444 | 5,484 | |||||||
4.500% due 05/22/19 (Þ) | NOK | 35,630 | 4,474 | |||||||
0.125% due 07/15/26 | 8,942 | 8,776 | ||||||||
Series 477 | 3.875% due 04/15/29 | 1,482 | 2,058 | |||||||
1.750% due 03/13/25 (Þ) | NOK | 6,850 | 816 | 2.125% due 02/15/40 | 18,068 | 22,898 | ||||
Peru Government International Bond | 1.375% due 02/15/44 | 9,220 | 10,230 | |||||||
5.700% due 08/12/24 | PEN | 20,670 | 6,516 | 0.750% due 02/15/45 | 6,894 | 6,605 | ||||
6.900% due 08/12/37 | PEN | 19,560 | 6,510 | 1.000% due 02/15/46 | 8,076 | 8,251 | ||||
Poland Government International Bond | United States Treasury Notes | |||||||||
Series 0721 | 1.125% due 06/15/18 | 16,461 | 16,453 | |||||||
1.750% due 07/25/21 | PLN | 5,680 | 1,409 | 1.250% due 12/15/18 | 24,000 | 24,008 | ||||
Series 1021 | 1.500% due 01/31/19 | 16,405 | 16,477 | |||||||
5.750% due 10/25/21 | PLN | 6,920 | 2,009 | 1.500% due 02/28/19 | 18,346 | 18,427 | ||||
Republic of Aregentina Governemnt | ||||||||||
International Bond | 1.500% due 03/31/19 | 22,315 | 22,418 | |||||||
18.200% due 10/03/21 | ARS | 26,560 | 1,898 | 1.625% due 03/31/19 | 2,465 | 2,482 | ||||
Republic of Poland Government | 0.875% due 04/15/19 | 33,780 | 33,524 | |||||||
International Bond | 1.500% due 11/30/19 | 10,002 | 10,035 | |||||||
Series 0726 | 1.625% due 12/31/19 | 10,601 | 10,666 | |||||||
2.500% due 07/25/26 | PLN | 5,890 | 1,421 | 1.375% due 01/31/20 | 9,529 | 9,522 | ||||
Series 1020 | 3.625% due 02/15/20 | 11,420 | 12,112 | |||||||
5.250% due 10/25/20 | PLN | 6,260 | 1,762 | 1.375% due 02/29/20 | 8,483 | 8,469 | ||||
Republic of South Africa Government | 3.500% due 05/15/20 | 20,794 | 22,043 | |||||||
International Bond | 1.375% due 05/31/20 | 12,031 | 11,989 | |||||||
Series R186 | 1.500% due 05/31/20 | 14,177 | 14,181 | |||||||
10.500% due 12/21/26 | ZAR | 28,030 | 2,341 | 2.625% due 08/15/20 | 30,283 | 31,339 | ||||
Series R207 | 2.125% due 08/31/20 | 29,287 | 29,832 | |||||||
7.250% due 01/15/20 | ZAR | 41,390 | 3,077 | 1.375% due 09/30/20 | 79,115 | 78,611 | ||||
Series R209 | 1.750% due 12/31/20 | 38,025 | 38,200 | |||||||
6.250% due 03/31/36 | ZAR | 28,710 | 1,551 | 1.250% due 10/31/21 | 155,325 | 151,861 | ||||
Series R214 | 2.000% due 11/15/21 | 51,030 | 51,548 | |||||||
6.500% due 02/28/41 | ZAR | 117,390 | 6,267 | 1.875% due 03/31/22 | 11,205 | 11,235 | ||||
Russian Federal Bond - OFZ | 1.125% due 04/30/22 | 88,075 | 85,894 | |||||||
Series 6207 | 1.625% due 04/30/23 | 12,000 | 11,750 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 401
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
1.250% due 07/31/23 | 34,653 | 33,061 | Short-Term Investments - 11.6% | |||||
2.500% due 08/15/23 | 11,585 | 11,909 | ||||||
6.250% due 08/15/23 | 9,795 | 12,260 | America Movil SAB de CV | |||||
1.375% due 08/31/23 | 12,000 | 11,527 | 5.625% due 11/15/17 | 250 | 255 | |||
1.625% due 10/31/23 | 49,865 | 48,585 | American Express Credit Corp. | |||||
2.750% due 11/15/23 | 11,322 | 11,806 | 1.125% due 06/05/17 | 4,215 | 4,214 | |||
2.250% due 01/31/24 | 210 | 212 | American Honda Finance Corp. | |||||
2.750% due 02/15/24 | 1,283 | 1,337 | ||||||
2.125% due 03/31/24 | 5,840 | 5,851 | 1.430% due 12/11/17 (Ê) | 570 | 571 | |||
2.000% due 04/30/24 | 5,010 | 4,978 | Anheuser-Busch InBev Worldwide, Inc. | |||||
2.500% due 05/15/24 | 6,669 | 6,843 | 1.574% due 06/08/17 (ç)(Þ)(~) | 800 | 799 | |||
2.250% due 11/15/25 | 370 | 370 | 1.431% due 10/10/17 (Þ)(~) | 3,400 | 3,382 | |||
1.625% due 05/15/26 | 29,000 | 27,480 | ||||||
1.500% due 08/15/26 | 31,725 | 29,673 | 1.671% due 01/02/18 (Þ)(~) | 2,500 | 2,477 | |||
2.000% due 11/15/26 | 48,900 | 47,718 | Antalis SA | |||||
1.625% due 02/15/27 | 16,500 | 15,667 | 0.905% due 05/09/17 (ç)(~) | 1,546 | 1,546 | |||
2.250% due 02/15/27 | 139,830 | 139,415 | 1.204% due 06/14/17 (ç)(Þ)(~) | 6,000 | 5,991 | |||
6.250% due 05/15/30 | 10,000 | 14,305 | Anthem, Inc. | |||||
4.500% due 02/15/36 | 4,000 | 5,131 | ||||||
3.500% due 02/15/39 | 5,640 | 6,291 | 1.875% due 01/15/18 | 2,225 | 2,227 | |||
4.625% due 02/15/40 | 10,154 | 13,204 | Assurant, Inc. | |||||
3.750% due 11/15/43 | 21,140 | 24,354 | 2.500% due 03/15/18 | 3,723 | 3,744 | |||
3.375% due 05/15/44 | 23,930 | 25,879 | AT&T, Inc. | |||||
2.500% due 02/15/45 | 9,810 | 8,937 | 1.700% due 06/01/17 | 4,815 | 4,817 | |||
3.000% due 05/15/45 | 18,560 | 18,706 | ||||||
2.500% due 02/15/46 | 19,920 | 18,101 | 5.500% due 02/01/18 | 1,600 | 1,645 | |||
2.875% due 11/15/46 | 8,790 | 8,637 | Bank of America Corp. | |||||
2.250% due 02/15/47 | 53,415 | 45,843 | 5.700% due 05/02/17 | 550 | 550 | |||
3.000% due 02/15/47 | 47,445 | 47,875 | 5.750% due 12/01/17 | 1,000 | 1,024 | |||
United States Treausy Inflation Indexed | ||||||||
Bonds | Bank of America NA | |||||||
0.125% due 04/15/22 | 2,985 | 3,003 | Series BKNT | |||||
1,522,557 | 1.381% due 06/05/17 (Ê) | 3,935 | 3,937 | |||||
Total Long-Term Investments | Bank of Montreal IL | |||||||
(cost $4,405,751) | 4,423,612 | 1.123% due 10/05/17 (Ê)(~) | 1,000 | 1,000 | ||||
Barclays Bank PLC | ||||||||
Preferred Stocks - 0.1% | 6.050% due 12/04/17 (Þ) | 200 | 205 | |||||
Financial Services - 0.1% | BNP Paribas SA | |||||||
XLIT, Ltd. | 3,685 | 3,189 | 2.375% due 09/14/17 | 300 | 301 | |||
Capital One NA | ||||||||
Total Preferred Stocks | Series BKNT | |||||||
(cost $3,075) | 3,189 | 1.650% due 02/05/18 | 4,560 | 4,559 | ||||
Cardinal Health, Inc. | ||||||||
1.700% due 03/15/18 | 2,963 | 2,964 | ||||||
Options Purchased - 0.0% | Cargill, Inc. | |||||||
(Number of Contracts) | 0.830% due 05/11/17 (ç)(Þ)(~) | 1,500 | 1,500 | |||||
United States 10 Year | Chevron Corp. | |||||||
Treasury Note Futures | 1.076% due 11/15/17 (Ê) | 1,595 | 1,597 | |||||
May 2017 125.50 Call (28) | USD | 3,514 | (ÿ) | 20 | ||||
May 2017 125.75 Call (54) | USD | 6,791 | (ÿ) | 32 | Citigroup, Inc. | |||
May 2017 126.00 Call (41) | USD | 12,096 | (ÿ) | 47 | 1.630% due 11/24/17 (Ê) | 7,300 | 7,320 | |
May 2017 121.00 Put (7) | USD | 847 | (ÿ) | — | 1.800% due 02/05/18 | 8,815 | 8,824 | |
Jun 2017 124.50 Put (0) | USD | 5,105 | (ÿ) | 20 | Commonwealth Bank of Australia | |||
Total Options Purchased | 1.510% due 01/12/18 (Þ)(~) | 5,000 | 5,013 | |||||
(cost $116) | 119 | Compass Bank | ||||||
Series BKNT |
See accompanying notes which are an integral part of the financial statements.
402 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
6.400% due 10/01/17 | 6,330 | 6,442 | 6.000% due 10/01/17 | 7,800 | 7,944 | ||||
ConocoPhillips Co. | Kellogg Co. | ||||||||
1.050% due 12/15/17 | 357 | 356 | 1.750% due 05/17/17 | 8,899 | 8,900 | ||||
Credit Suisse | LMA Americas LLC | ||||||||
1.750% due 01/29/18 | 5,245 | 5,248 | 0.878% due 05/09/17 (ç)(Þ)(~) | 6,700 | 6,699 | ||||
Danske Corp. | Manufacturers & Traders Trust Co. | ||||||||
Series A | Series BKNT | ||||||||
1.745% due 02/16/18 (Þ)(~) | 2,910 | 2,870 | 1.400% due 07/25/17 | 5,600 | 5,600 | ||||
DCP Midstream Operating, LP | Matchpoint Finance PLC | ||||||||
2.500% due 12/01/17 | 685 | 686 | 1.050% due 06/19/17 (ç)(~) | 1,000 | 999 | ||||
eBay, Inc. | Morgan Stanley | ||||||||
1.350% due 07/15/17 | 4,085 | 4,084 | 5.950% due 12/28/17 | 1,000 | 1,028 | ||||
Eni Finance USA, Inc. | National Australia Bank, Ltd. | ||||||||
0.801% due 05/03/17 (ç)(Þ)(~) | 3,100 | 3,100 | 1.432% due 06/30/17 (Ê)(Þ) | 2,965 | 2,966 | ||||
0.886% due 05/04/17 (ç)(Þ)(~) | 3,100 | 3,100 | New York Life Global Funding | ||||||
Fannie Mae-Aces | 1.450% due 12/15/17 (Þ) | 4,880 | 4,883 | ||||||
Series 2013-M4 Class ASQ2 | NGPL PipeCo LLC | ||||||||
1.451% due 02/25/18 | 2,530 | 2,528 | 7.119% due 12/15/17 (Þ) | 3,855 | 3,959 | ||||
Series 2014-M13 Class ASQ2 | Sheffield Receivables Co. LLC | ||||||||
1.637% due 11/25/17 | 6,714 | 6,718 | 1.390% due 06/29/17 (Þ)(~) | 7,200 | 7,184 | ||||
Series 2015-M1 Class ASQ2 | Singapore Government International | ||||||||
1.626% due 02/25/18 | 6,674 | 6,677 | Bond | ||||||
Series 2015-M7 Class ASQ2 | 0.500% due 04/01/18 | SGD | 2,730 | 1,944 | |||||
1.550% due 04/25/18 | 3,273 | 3,270 | Sky PLC | ||||||
Federal Home Loan Mortgage Corp. | 6.100% due 02/15/18 (Þ) | 4,670 | 4,825 | ||||||
Multifamily Structured Pass-Through | Starbird Funding Corp. | ||||||||
Certificates | 0.978% due 05/25/17 (ç)(Þ)(~) | 550 | 550 | ||||||
Series 2011-K702 Class X1 | 0.978% due 06/06/17 (ç)(~) | 7,000 | 6,992 | ||||||
1.617% due 02/25/18 | 51,887 | 402 | State Street Corp. | ||||||
FirstEnergy Corp. | 4.956% due 03/15/18 | 1,000 | 1,027 | ||||||
Series A | |||||||||
Statoil ASA | |||||||||
2.750% due 03/15/18 | 200 | 201 | |||||||
3.125% due 08/17/17 | 150 | 151 | |||||||
Ford Motor Credit Co. LLC | |||||||||
Sumitomo Mitsui Banking Corp. | |||||||||
1.724% due 12/06/17 | 1,000 | 999 | |||||||
1.399% due 08/10/17 (Ê)(~) | 3,000 | 3,002 | |||||||
2.145% due 01/09/18 | 6,395 | 6,413 | Thomson Reuters Corp. | ||||||
General Electric Co. | 1.650% due 09/29/17 | 4,000 | 4,002 | ||||||
5.250% due 12/06/17 | 2,390 | 2,446 | Thunder Bay Funding LLC | ||||||
Glencore Finance Canada, Ltd. | 0.880% due 05/10/17 (ç)(~) | 1,901 | 1,901 | ||||||
2.700% due 10/25/17 (Þ) | 900 | 903 | Total Capital International SA | ||||||
Gotham Funding Corp. | 1.550% due 06/28/17 | 5,110 | 5,112 | ||||||
1.082% due 05/19/17 (ç)(Þ)(~) | 3,000 | 2,998 | Tyco Electronics Group SA | ||||||
Harris Corp. | 6.550% due 10/01/17 | 1,934 | 1,974 | ||||||
1.999% due 04/27/18 | 2,426 | 2,432 | U.S. Cash Management Fund | 211,729,544 | (8) | 211,769 | |||
HSBC USA, Inc. | UBS AG | ||||||||
1.374% due 01/18/18 (Ê)(Þ)(~) | 2,500 | 2,505 | Series BKNT | ||||||
JPMorgan Chase & Co. | 1.800% due 03/26/18 | 7,750 | 7,764 | ||||||
Series H | United States Treasury Bills | ||||||||
1.700% due 03/01/18 | 990 | 991 | 0.699% due 06/22/17 | 3,000 | 2,997 | ||||
JPMorgan Chase Bank NA | 0.743% due 07/06/17 | 26,620 | 26,584 | ||||||
Series BKNT |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 403
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Principal | Fair | |||
Amount ($) | Value | |||
or Shares | $ | |||
0.744% due 07/13/17 | 2,600 | 2,596 | ||
0.823% due 08/03/17 | 1,200 | 1,197 | ||
0.942% due 10/12/17 | 27,210 | 27,095 | ||
United States Treasury Notes | ||||
0.750% due 12/31/17 | 19,770 | 19,730 | ||
0.875% due 01/15/18 | 38,850 | 38,801 | ||
0.875% due 03/31/18 | 18,985 | 18,942 | ||
Verizon Communications, Inc. | ||||
1.506% due 06/09/17 (Ê) | 2,380 | 2,381 | ||
Vodafone Group PLC | ||||
0.010% due 09/13/17 (Þ)(~) | 1,500 | 1,491 | ||
Voya Financial, Inc. | ||||
2.900% due 02/15/18 | 1,475 | 1,488 | ||
Total Short-Term Investments | ||||
(cost $580,154) | 580,308 | |||
Total Investments 100.4% | ||||
(identified cost $4,989,096) | 5,007,228 | |||
Other Assets and Liabilities, | ||||
Net - (0.4%) | (20,046 | ) | ||
Net Assets - 100.0% | 4,987,182 |
See accompanying notes which are an integral part of the financial statements.
404 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities | |||||||||||
Amounts in thousands (except share and cost per unit amounts) | |||||||||||
Principal | Cost per | Cost | Fair Value | ||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | ||||
Securities | Date | or shares | $ | $ | $ | ||||||
0.7% | |||||||||||
A10 Securitization LLC | 05/19/16 | 4,391,000 | 99.97 | 4,390 | 4,321 | ||||||
BCAP LLC Trust | 11/26/13 | 2,107,788 | 104.55 | 2,204 | 2,123 | ||||||
Bear Stearns Second Lien Trust | 10/22/15 | 667,607 | 96.62 | 645 | 658 | ||||||
Citigroup Mortgage Loan Trust, Inc. | 08/03/15 | 2,169,212 | 88.79 | 1,926 | 2,006 | ||||||
Fannie Mae | 09/19/08 | 13,341 | 21.01 | 3 | 3 | ||||||
Fannie Mae | 09/19/08 | 6,217 | 27.39 | 2 | 2 | ||||||
Fannie Mae | 09/19/08 | 13,809 | 27.43 | 4 | 4 | ||||||
Fannie Mae | 04/27/10 | 21,186 | 29.06 | 6 | 6 | ||||||
Fannie Mae REMICS | 09/15/00 | 20,548 | 16.34 | 3 | 3 | ||||||
Fannie Mae REMICS | 06/12/01 | 43 | 0.53 | — | — | ||||||
Fannie Mae REMICS | 04/25/05 | 45,793 | 22.46 | 10 | 10 | ||||||
Fannie Mae REMICS | 04/25/05 | 260,912 | 25.86 | 67 | 67 | ||||||
Fannie Mae REMICS | 02/28/07 | 47,018 | 99.93 | 47 | 46 | ||||||
Fannie Mae REMICS | 08/17/07 | 458,582 | 99.20 | 455 | 450 | ||||||
Fannie Mae REMICS | 09/19/08 | 54,283 | 19.09 | 10 | 10 | ||||||
Fannie Mae REMICS | 09/19/08 | 26,994 | 21.42 | 6 | 6 | ||||||
Fannie Mae REMICS | 09/19/08 | 57,779 | 24.22 | 14 | 14 | ||||||
Fannie Mae REMICS | 09/19/08 | 46,988 | 25.53 | 12 | 12 | ||||||
Freddie Mac REMICS | 04/14/03 | 31,648 | 24.50 | 8 | 8 | ||||||
Freddie Mac REMICS | 06/11/03 | 8,154 | 17.44 | 1 | 1 | ||||||
Freddie Mac REMICS | 03/15/04 | 13,834 | 16.19 | 2 | 2 | ||||||
Freddie Mac REMICS | 09/19/08 | 387,943 | 16.90 | 66 | 66 | ||||||
Freddie Mac REMICS | 09/19/08 | 72,881 | 27.25 | 20 | 20 | ||||||
Freddie Mac Strips | 09/19/08 | 29,856 | 19.07 | 6 | 6 | ||||||
Freddie Mac Strips | 09/19/08 | 30,630 | 22.72 | 7 | 7 | ||||||
Freddie Mac Strips | 09/19/08 | 12,940 | 23.80 | 3 | 3 | ||||||
Freddie Mac Strips | 09/19/08 | 31,664 | 27.75 | 9 | 9 | ||||||
Ginnie Mae | 01/20/10 | 50,629 | 21.25 | 11 | 11 | ||||||
GSAA Trust | 10/21/15 | 3,016,402 | 85.83 | 2,589 | 2,688 | ||||||
Irwin Home Equity Loan Trust | 06/30/15 | 2,739,239 | 102.32 | 2,803 | 2,786 | ||||||
Irwin Home Equity Loan Trust | 05/04/16 | 1,194,934 | 102.16 | 1,221 | 1,216 | ||||||
One Market Plaza Trust | 02/15/17 | 4,080,000 | 97.52 | 3,979 | 4,017 | ||||||
Voya CLO, Ltd. | 03/31/17 | 8,100,000 | 100.00 | 8,100 | 8,100 | ||||||
Waldorf Astoria Boca Raton Trust | 07/12/16 | 4,000,000 | 100.00 | 4,000 | 4,011 | ||||||
32,692 | |||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Australia 10 Year Government Bond Futures | 3,276 | AUD | 424,961 | 06/17 | 7,283 | ||
British Pound Currency Futures | 82 | USD | 6,644 | 06/17 | 212 | ||
Euro-BTP Futures | 307 | EUR | 40,435 | 06/17 | 495 | ||
Euro-Bund Futures | 59 | EUR | 14 | 05/17 | (12 | ) | |
Eurodollar Futures | 317 | USD | 77,780 | 12/18 | 201 | ||
United States 2 Year Treasury Note Futures | 647 | USD | 140,146 | 06/17 | 258 | ||
United States 5 Year Treasury Note Futures | 5,804 | USD | 687,229 | 06/17 | 4,738 | ||
United States 10 Year Treasury Note Futures | 6,003 | USD | 754,683 | 06/17 | 6,270 | ||
United States Long Bond Futures | 688 | USD | 105,242 | 06/17 | 2,028 | ||
United States Ultra Treasury Bond Futures | 124 | USD | 20,205 | 06/17 | 393 | ||
Short Positions | |||||||
Cross Currency Futures (AUD/USD) | 248 | USD | 18,540 | 06/17 | 31 | ||
Euro Currency Futures | 45 | USD | 6,143 | 06/17 | — | ||
Euro-Bobl Futures | 218 | EUR | 28,745 | 06/17 | 194 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 405
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Euro-Bund Futures | 26 | EUR | 2 | 05/17 | 17 | ||
Euro-Bund Futures | 1,937 | EUR | 313,368 | 06/17 | (1,344 | ) | |
Eurodollar Futures | 174 | USD | 42,854 | 12/17 | 15 | ||
Eurodollar Futures | 317 | USD | 77,578 | 12/19 | (247 | ) | |
Euro-OAT Futures | 107 | EUR | 16,033 | 06/17 | (276 | ) | |
Japan Government 10 Year Bond Futures | 25 | JPY | 3,775,499 | 06/17 | (180 | ) | |
Japanese Yen Currency Futures | 108 | USD | 12,142 | 06/17 | 78 | ||
Long Gilt Futures | 1,881 | GBP | 241,276 | 06/17 | (4,504 | ) | |
United States 10 Year Treasury Note Futures | 209 | USD | 26,275 | 06/17 | (283 | ) | |
United States 2 Year Treasury Note Futures | 150 | USD | 32,492 | 06/17 | (70 | ) | |
United States Long Bond Futures | 147 | USD | 22,486 | 06/17 | (128 | ) | |
United States Ultra Treasury Bond Futures | 313 | USD | 44,101 | 06/17 | (723 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 14,446 |
Options Written | ||||||||
Amounts in thousands (except contract amounts) | ||||||||
Number of | Strike | Notional | Expiration | Fair Value | ||||
Call/Put | Contracts | Price | Amount | Date | $ | |||
United States 5 Year Treasury Note Futures | Call | 27 | 118.00 | USD | 3,186 | 05/26/17 | (16 | ) |
United States 5 Year Treasury Note Futures | Call | 137 | 118.25 | USD | 16,200 | 05/26/17 | (61 | ) |
United States 5 Year Treasury Note Futures | Call | 81 | 119.25 | USD | 9,659 | 05/26/17 | (9 | ) |
United States 10 Year Treasury Note Futures | Call | 81 | 125.00 | USD | 10,125 | 05/26/17 | (83 | ) |
United States 10 Year Treasury Note Futures | Call | 4 | 126.50 | USD | 506 | 05/26/17 | (1 | ) |
United States 10 Year Treasury Note Futures | Call | 139 | 127.00 | USD | 17,653 | 05/26/17 | (28 | ) |
United States 10 Year Treasury Note Futures | Call | 276 | 127.50 | USD | 35,190 | 05/26/17 | (35 | ) |
United States 10 Year Treasury Note Futures | Call | 74 | 128.00 | USD | 9,472 | 05/26/17 | (6 | ) |
United States 10 Year Treasury Note Futures | Call | 82 | 127.50 | USD | 10,455 | 06/23/17 | (19 | ) |
United States 10 Year Treasury Note Futures | Call | 54 | 128.50 | USD | 6,939 | 06/23/17 | (7 | ) |
United States 10 Year Treasury Note Futures | Put | 185 | 119.50 | USD | 22,108 | 05/26/17 | — | |
United States Treasury Bond Futures | Call | 27 | 152.00 | USD | 4,104 | 05/26/17 | (53 | ) |
United States Treasury Bond Futures | Call | 32 | 153.00 | USD | 4,896 | 05/26/17 | (46 | ) |
United States Treasury Bond Futures | Call | 27 | 154.00 | USD | 4,158 | 05/26/17 | (27 | ) |
United States Treasury Bond Futures | Call | 32 | 158.00 | USD | 5,056 | 05/26/17 | (7 | ) |
United States Treasury Bond Futures | Call | 63 | 160.00 | USD | 10,080 | 05/26/17 | (6 | ) |
United States Treasury Bond Futures | Put | 14 | 148.00 | USD | 2,072 | 06/23/17 | (9 | ) |
United States Treasury Bond Futures | Put | 14 | 149.00 | USD | 2,086 | 06/23/17 | (12 | ) |
Total Liability for Options Written (premiums received $519) | (425 | ) |
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||
Number of | Premiums | |||||
Contracts | Received | |||||
Outstanding October 31, 2016 | 912 | $ | 469 | |||
Opened | 7,154 | 2,748 | ||||
Closed | (2,910 | ) | (1,062 | ) | ||
Expired | (3,807 | ) | (1,636 | ) | ||
Outstanding April 30, 2017 | 1,349 | $ | 519 |
See accompanying notes which are an integral part of the financial statements.
406 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 10 | BRL | 32 | 05/23/17 | — | |
Bank of America | USD | 528 | BRL | 1,694 | 05/23/17 | 3 | |
Bank of America | USD | 9,281 | BRL | 28,889 | 05/23/17 | (225 | ) |
Bank of America | USD | 40 | CLP | 27,135 | 05/23/17 | — | |
Bank of America | USD | 343 | CLP | 222,711 | 05/23/17 | (10 | ) |
Bank of America | USD | 8 | COP | 24,178 | 05/23/17 | — | |
Bank of America | USD | 9,145 | COP | 26,688,804 | 05/23/17 | (103 | ) |
Bank of America | USD | 49 | CZK | 1,216 | 05/23/17 | 1 | |
Bank of America | USD | 403 | CZK | 10,196 | 05/23/17 | 11 | |
Bank of America | USD | 21,090 | CZK | 531,551 | 05/23/17 | 500 | |
Bank of America | USD | 291 | HUF | 84,662 | 05/23/17 | 4 | |
Bank of America | USD | 343 | HUF | 100,205 | 05/23/17 | 6 | |
Bank of America | USD | 21,008 | HUF | 6,066,992 | 05/23/17 | 106 | |
Bank of America | USD | 733 | IDR | 9,819,828 | 05/23/17 | 3 | |
Bank of America | USD | 23 | KRW | 25,885 | 05/23/17 | — | |
Bank of America | USD | 409 | KRW | 467,882 | 05/23/17 | 2 | |
Bank of America | USD | 20,862 | PLN | 84,883 | 05/23/17 | 1,014 | |
Bank of America | USD | 473 | RUB | 28,333 | 05/23/17 | 23 | |
Bank of America | USD | 740 | RUB | 41,816 | 05/23/17 | (8 | ) |
Bank of America | USD | 9,207 | RUB | 538,627 | 05/23/17 | 214 | |
Bank of America | USD | 9,069 | TRY | 34,148 | 05/23/17 | 488 | |
Bank of America | USD | 20,405 | TRY | 76,833 | 05/23/17 | 1,096 | |
Bank of America | USD | 87 | TWD | 2,630 | 05/23/17 | 1 | |
Bank of America | USD | 376 | TWD | 11,531 | 05/23/17 | 6 | |
Bank of America | BRL | 72 | USD | 23 | 05/23/17 | 1 | |
Bank of America | BRL | 753 | USD | 235 | 05/23/17 | (1 | ) |
Bank of America | BRL | 65,000 | USD | 20,882 | 05/23/17 | 507 | |
Bank of America | CLP | 13,420,634 | USD | 20,906 | 05/23/17 | 817 | |
Bank of America | COP | 831,018 | USD | 292 | 05/23/17 | 10 | |
Bank of America | CZK | 541 | USD | 22 | 05/23/17 | — | |
Bank of America | CZK | 22,941 | USD | 907 | 05/23/17 | (25 | ) |
Bank of America | CZK | 236,245 | USD | 9,373 | 05/23/17 | (222 | ) |
Bank of America | HUF | 44,535 | USD | 152 | 05/23/17 | (3 | ) |
Bank of America | HUF | 190,490 | USD | 654 | 05/23/17 | (9 | ) |
Bank of America | HUF | 2,696,441 | USD | 9,337 | 05/23/17 | (47 | ) |
Bank of America | IDR | 745,444 | USD | 56 | 05/23/17 | — | |
Bank of America | IDR | 278,045,272 | USD | 20,631 | 05/23/17 | (191 | ) |
Bank of America | KRW | 10,681,085 | USD | 9,353 | 05/23/17 | (37 | ) |
Bank of America | PLN | 698 | USD | 176 | 05/23/17 | (4 | ) |
Bank of America | PLN | 3,155 | USD | 777 | 05/23/17 | (36 | ) |
Bank of America | RUB | 12,592 | USD | 210 | 05/23/17 | (10 | ) |
Bank of America | RUB | 18,585 | USD | 329 | 05/23/17 | 4 | |
Bank of America | RUB | 1,211,911 | USD | 20,715 | 05/23/17 | (483 | ) |
Bank of America | TRY | 294 | USD | 79 | 05/23/17 | (3 | ) |
Bank of America | TRY | 661 | USD | 178 | 05/23/17 | (7 | ) |
Bank of America | TRY | 806 | USD | 212 | 05/23/17 | (13 | ) |
Bank of America | TRY | 1,813 | USD | 477 | 05/23/17 | (30 | ) |
Bank of America | TWD | 287,589 | USD | 9,390 | 05/23/17 | (135 | ) |
Bank of Montreal | USD | 14,897 | AUD | 19,815 | 05/23/17 | (65 | ) |
Bank of Montreal | USD | 52,138 | AUD | 69,353 | 05/23/17 | (227 | ) |
Bank of Montreal | USD | 34,189 | EUR | 31,824 | 05/23/17 | 511 | |
Bank of Montreal | DKK | 105,216 | USD | 15,195 | 05/23/17 | (229 | ) |
Bank of Montreal | EUR | 49,504 | USD | 53,183 | 05/23/17 | (795 | ) |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 407
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of Montreal | HKD | 71,947 | USD | 9,279 | 05/23/17 | 26 | |
Bank of New York | USD | 34,730 | GBP | 27,013 | 05/23/17 | 276 | |
Bank of New York | USD | 33,950 | JPY | 3,693,773 | 05/23/17 | (789 | ) |
Bank of New York | JPY | 5,745,868 | USD | 52,811 | 05/23/17 | 1,227 | |
Bank of New York | SEK | 135,744 | USD | 15,154 | 05/23/17 | (187 | ) |
Barclays | USD | 150 | CAD | 200 | 07/20/17 | (3 | ) |
Barclays | USD | 6,794 | CAD | 9,000 | 07/20/17 | (192 | ) |
Barclays | USD | 4,947 | GBP | 3,950 | 07/20/17 | 180 | |
Barclays | USD | 7,707 | MXN | 145,723 | 07/20/17 | (64 | ) |
Barclays | EUR | 2,990 | USD | 3,187 | 07/20/17 | (83 | ) |
Barclays | JPY | 1,453,708 | USD | 13,315 | 07/20/17 | 231 | |
Citigroup | USD | 6,248 | ILS | 22,800 | 05/24/17 | 48 | |
Citigroup | USD | 3,095 | INR | 200,000 | 05/24/17 | 8 | |
Citigroup | USD | 3,159 | RUB | 178,000 | 05/24/17 | (48 | ) |
Citigroup | USD | 9,392 | ZAR | 123,656 | 05/23/17 | (171 | ) |
Citigroup | EUR | 2,950 | CZK | 79,461 | 06/06/17 | 9 | |
Citigroup | ZAR | 41,240 | USD | 3,100 | 05/24/17 | 30 | |
HSBC | MXN | 59,270 | USD | 3,100 | 05/24/17 | (29 | ) |
JPMorgan Chase | USD | 12,315 | CAD | 16,179 | 05/12/17 | (461 | ) |
JPMorgan Chase | USD | 3,101 | CHF | 3,123 | 05/12/17 | 39 | |
JPMorgan Chase | USD | 8,280 | CLP | 5,386,881 | 05/26/17 | (218 | ) |
JPMorgan Chase | USD | 1,216 | EUR | 1,140 | 06/13/17 | 28 | |
JPMorgan Chase | USD | 17,857 | GBP | 14,304 | 06/13/17 | 692 | |
JPMorgan Chase | USD | 1,737 | HUF | 506,318 | 05/12/17 | 24 | |
JPMorgan Chase | USD | 5,216 | INR | 339,750 | 07/20/17 | 25 | |
JPMorgan Chase | USD | 307 | JPY | 33,380 | 06/13/17 | (7 | ) |
JPMorgan Chase | USD | 3,866 | MXN | 76,288 | 05/12/17 | 180 | |
JPMorgan Chase | USD | 10,671 | MXN | 232,915 | 06/28/17 | 1,588 | |
JPMorgan Chase | USD | 1,248 | NOK | 10,550 | 05/12/17 | (19 | ) |
JPMorgan Chase | USD | 11,149 | NOK | 92,582 | 05/12/17 | (365 | ) |
JPMorgan Chase | USD | 1,438 | PLN | 5,869 | 05/12/17 | 75 | |
JPMorgan Chase | USD | 5,032 | PLN | 20,322 | 05/12/17 | 206 | |
JPMorgan Chase | USD | 25,900 | SEK | 228,421 | 05/12/17 | (99 | ) |
JPMorgan Chase | USD | 3,520 | SGD | 4,963 | 05/12/17 | 33 | |
JPMorgan Chase | USD | 3,054 | TRY | 11,055 | 05/24/17 | 33 | |
JPMorgan Chase | USD | 3,444 | ZAR | 45,202 | 05/12/17 | (67 | ) |
JPMorgan Chase | USD | 5,838 | ZAR | 79,836 | 05/12/17 | 127 | |
JPMorgan Chase | AUD | 49,153 | USD | 36,962 | 06/13/17 | 184 | |
JPMorgan Chase | BRL | 53,249 | USD | 16,912 | 05/26/17 | 232 | |
JPMorgan Chase | CAD | 2,959 | USD | 2,210 | 05/12/17 | 42 | |
JPMorgan Chase | CHF | 17,024 | USD | 17,220 | 05/12/17 | 101 | |
JPMorgan Chase | CNY | 103,360 | USD | 14,873 | 07/20/17 | 4 | |
JPMorgan Chase | COP | 23,505,468 | USD | 8,226 | 05/26/17 | 266 | |
JPMorgan Chase | CZK | 1,900 | USD | 75 | 05/12/17 | (2 | ) |
JPMorgan Chase | CZK | 19,237 | USD | 766 | 05/12/17 | (15 | ) |
JPMorgan Chase | DKK | 439 | USD | 63 | 05/11/17 | (2 | ) |
JPMorgan Chase | DKK | 1,971 | USD | 285 | 05/11/17 | (4 | ) |
JPMorgan Chase | EUR | 27,426 | USD | 29,306 | 06/13/17 | (630 | ) |
JPMorgan Chase | HKD | 5,091 | USD | 657 | 05/12/17 | 2 | |
JPMorgan Chase | HUF | 2,764,762 | USD | 9,586 | 05/12/17 | (33 | ) |
JPMorgan Chase | IDR | 157,281,640 | USD | 11,752 | 05/26/17 | (23 | ) |
JPMorgan Chase | JPY | 102,049 | USD | 925 | 06/13/17 | 8 | |
JPMorgan Chase | MXN | 57,945 | USD | 2,939 | 05/12/17 | (134 | ) |
See accompanying notes which are an integral part of the financial statements.
408 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
JPMorgan Chase | MXN | 99,758 | USD | 4,790 | 05/12/17 | (501 | ) |
JPMorgan Chase | MXN | 232,915 | USD | 11,495 | 06/28/17 | (763 | ) |
JPMorgan Chase | NOK | 27,428 | USD | 3,236 | 05/12/17 | 41 | |
JPMorgan Chase | NZD | 66,434 | USD | 46,227 | 06/13/17 | 662 | |
JPMorgan Chase | PEN | 76,590 | USD | 23,467 | 05/26/17 | (79 | ) |
JPMorgan Chase | PHP | 417,153 | USD | 8,360 | 05/26/17 | 63 | |
JPMorgan Chase | PLN | 9,535 | USD | 2,341 | 05/12/17 | (117 | ) |
JPMorgan Chase | SEK | 41,885 | USD | 4,665 | 05/12/17 | (66 | ) |
JPMorgan Chase | SGD | 26,667 | USD | 18,861 | 05/12/17 | (228 | ) |
JPMorgan Chase | THB | 415,783 | USD | 12,088 | 05/26/17 | 69 | |
JPMorgan Chase | ZAR | 55,413 | USD | 4,218 | 05/12/17 | 78 | |
Royal Bank of Canada | USD | 52,541 | ILS | 192,504 | 05/23/17 | 642 | |
Royal Bank of Canada | USD | 6,150 | MXN | 116,837 | 05/24/17 | 18 | |
Royal Bank of Canada | USD | 15,042 | NZD | 21,451 | 05/23/17 | (321 | ) |
Royal Bank of Canada | CHF | 15,101 | USD | 15,170 | 05/23/17 | (25 | ) |
Royal Bank of Canada | CHF | 33,977 | USD | 34,133 | 05/23/17 | (56 | ) |
Royal Bank of Canada | ILS | 123,752 | USD | 33,777 | 05/23/17 | (413 | ) |
Royal Bank of Canada | SEK | 475,103 | USD | 52,941 | 05/23/17 | (753 | ) |
State Street | USD | 341 | HKD | 2,646 | 05/23/17 | (1 | ) |
State Street | USD | 20,889 | SGD | 29,697 | 05/23/17 | 372 | |
State Street | USD | 301 | ZAR | 4,020 | 05/23/17 | (1 | ) |
State Street | HKD | 804 | USD | 103 | 05/23/17 | — | |
State Street | SGD | 32 | USD | 23 | 05/23/17 | — | |
State Street | SGD | 1,318 | USD | 934 | 05/23/17 | (10 | ) |
State Street | ZAR | 6,596 | USD | 500 | 05/23/17 | 8 | |
Toronto Dominion Bank | USD | 6,232 | INR | 403,000 | 05/24/17 | 20 | |
UBS | USD | 6,343 | SEK | 55,536 | 05/24/17 | (67 | ) |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 3,261 |
Interest Rate Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Termination | Fair Value | ||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | ||||
JPMorgan Chase | DKK | 72,000 | Six Month CIBOR | 0.510 | % | 05/05/25 | 102 | ||
JPMorgan Chase | DKK | 101,848 | Six Month CIBOR | 0.943 | % | 05/05/25 | (146 | ) | |
JPMorgan Chase | DKK | 11,600 | Six Month CIBOR | 0.640 | % | 05/06/25 | (4 | ) | |
JPMorgan Chase | HKD | 7,300 | Three Month HIBOR | 1.462 | % | 05/14/25 | 39 | ||
JPMorgan Chase | HKD | 42,195 | Three Month HIBOR | 1.420 | % | 05/14/25 | 245 | ||
JPMorgan Chase | HKD | 58,524 | Three Month MIBOR | 2.160 | % | 05/14/25 | (88 | ) | |
JPMorgan Chase | CZK | 22,190 | Six Month PRIBOR | 0.490 | % | 06/19/25 | 49 | ||
JPMorgan Chase | CZK | 133,000 | Six Month PRIBOR | 0.495 | % | 06/19/25 | 294 | ||
JPMorgan Chase | CZK | 180,751 | Six Month PRIBOR | 1.280 | % | 06/19/25 | (110 | ) | |
Merrill Lynch | USD | 117,760 | Three Month MIBOR | 1.267 | % | 05/15/23 | 4,761 | ||
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $1,468 (å) | 5,142 |
Total Return Swap Contracts (*) | ||||||
Amounts in thousands | ||||||
Notional | Termination | Fair Value | ||||
Underlying Reference Entity | Counterparty | Amount | Date | $ | ||
Barclays US Aggregate Bond Index | Barclays | USD | 61,907 | 06/30/17 | 408 | |
Barclays US Aggregate Bond Index | Barclays | USD | 27,514 | 06/30/17 | 181 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 409
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Total Return Swap Contracts (*) | ||||
Amounts in thousands | ||||
Notional | Termination | Fair Value | ||
Underlying Reference Entity | Counterparty | Amount | Date | $ |
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å) | 589 |
(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were all based
on 1 Month LIBOR rate plus a fee of 0.10%.
Credit Default Swap Contracts | |||||||||||||||||||||
Amounts in thousands | |||||||||||||||||||||
Credit Indices | |||||||||||||||||||||
Fund (Pays)/ | |||||||||||||||||||||
Receives | Termination | Fair Value | |||||||||||||||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | ||||||||||||||||
CDX NA High Yield Index | Goldman Sachs | USD | 8,530 | 5.000 | % | 06/20/22 | (576 | ) | |||||||||||||
CDX NA High Yield Index | Merrill Lynch | USD | 2,760 | (5.000 | %) | 06/20/22 | (219 | ) | |||||||||||||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - ($331) | (795 | ) | |||||||||||||||||||
Presentation of Portfolio Holdings | |||||||||||||||||||||
Amounts in thousands | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Practical | |||||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||||||
Long-Term Investments | |||||||||||||||||||||
Asset-Backed Securities | $ | — | $ | 338,872 | $ | 2,328 | $ | — | $ | 341,200 | 6.8 | ||||||||||
Corporate Bonds and Notes | — | 958,960 | — | — | 958,960 | 19.2 | |||||||||||||||
International Debt | — | 339,500 | — | — | 339,500 | 6.8 | |||||||||||||||
Loan Agreements | — | 29,102 | — | — | 29,102 | 0.6 | |||||||||||||||
Mortgage-Backed Securities | — | 997,867 | 17,611 | — | 1,015,478 | 20.4 | |||||||||||||||
Municipal Bonds | — | 16,288 | — | — | 16,288 | 0.3 | |||||||||||||||
Non-US Bonds | — | 200,527 | — | — | 200,527 | 4.0 | |||||||||||||||
United States Government Treasuries | — | 1,522,557 | — | — | 1,522,557 | 30.6 | |||||||||||||||
Preferred Stocks | 3,189 | — | — | — | 3,189 | 0.1 | |||||||||||||||
Options Purchased | 119 | — | — | — | 119 | —* | |||||||||||||||
Short-Term Investments | — | 368,539 | — | 211,769 | 580,308 | 11.6 | |||||||||||||||
Total Investments | 3,308 | 4,772,212 | 19,939 | 211,769 | 5,007,228 | 100.4 | |||||||||||||||
Other Assets and Liabilities, Net | (0.4 | ) | |||||||||||||||||||
100.0 |
See accompanying notes which are an integral part of the financial statements.
410 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 22,213 | — | — | — | 22,213 | 0.4 | ||||||||||
Foreign Currency Exchange Contracts | — | 13,225 | — | — | 13,225 | 0.3 | ||||||||||
Interest Rate Swap Contracts | — | 5,490 | — | — | 5,490 | 0.1 | ||||||||||
Total Return Swap Contracts | — | 589 | — | — | 589 | —* | ||||||||||
A | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (7,767 | ) | — | — | — | (7,767 | ) | (0.2 | ) | |||||||
Options Written | (425 | ) | — | — | — | (425 | ) | —* | ||||||||
Foreign Currency Exchange Contracts | — | (9,964 | ) | — | — | (9,964 | ) | (0.2 | ) | |||||||
Interest Rate Swap Contracts | — | (348 | ) | — | — | (348 | ) | (—)* | ||||||||
Credit Default Swap Contracts | — | (795 | ) | — | — | (795 | ) | (—)* | ||||||||
Total Other Financial Instruments** | $ | 14,021 | $ | 8,197 | $ | — | $ | — | $ | 22,218 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 411
Russell Investment Company
Strategic Bond Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||||
Credit | Currency | Interest Rate | |||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | ||||||
Location: Statement of Assets and Liabilities - Assets | |||||||||
Investments, at fair value* | $ | — | $ | — | $ | 119 | |||
Unrealized appreciation on foreign currency exchange contracts | — | 13,225 | — | ||||||
Variation margin on futures contracts** | — | 321 | 21,892 | ||||||
Total return swap contracts, at fair value | — | — | 589 | ||||||
Interest rate swap contracts, at fair value | — | — | 5,490 | ||||||
Total | $ | — | $ | 13,546 | $ | 28,090 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||||
Variation margin on futures contracts** | $ | — | $ | — | $ | 7,767 | |||
Unrealized depreciation on foreign currency exchange contracts | — | 9,964 | — | ||||||
Options written, at fair value | — | — | 425 | ||||||
Interest rate swap contracts, at fair value | — | — | 348 | ||||||
Credit default swap contracts, at fair value | 795 | — | — | ||||||
Total | $ | 795 | $ | 9,964 | $ | 8,540 | |||
Foreign | |||||||||
Credit | Currency | Interest Rate | |||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | ||||||
Location: Statement of Operations - Net realized gain (loss) | |||||||||
Investments*** | $ | — | $ | (2,285 | ) | $ | (1,033 | ) | |
Futures contracts | — | (57 | ) | (40,909 | ) | ||||
Options written | — | 594 | 1,434 | ||||||
Total return swap contracts | — | — | (3,226 | ) | |||||
Interest rate swap contracts | — | — | 10 | ||||||
Credit default swap contracts | 810 | — | — | ||||||
Foreign currency-related transactions**** | — | (17,689 | ) | — | |||||
Total | $ | 810 | $ | (19,437 | ) | $ | (43,724 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||||||
Investments***** | $ | — | $ | 49 | $ | 118 | |||
Futures contracts | — | 313 | 11,690 | ||||||
Options written | — | (27 | ) | (137 | ) | ||||
Total return swap contracts | — | — | 679 | ||||||
Interest rate swap contracts | — | — | 2,923 | ||||||
Credit default swap contracts | (1,243 | ) | — | — | |||||
Foreign currency-related transactions****** | — | 6,973 | — | ||||||
Total | $ | (1,243 | ) | $ | 7,308 | $ | 15,273 |
* Fair value of purchased options.
** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
*** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
412 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 119 | $ | — $ | 119 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 13,225 | — | 13,225 | |||||
Futures Contracts | Variation margin on futures contracts | 13,755 | — | 13,755 | |||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 589 | — | 589 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 5,490 | — | 5,490 | |||||
Total Financial and Derivative Assets | 33,178 | — | 33,178 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (18,507 | ) | — | (18,507 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 14,671 | $ | — $ | 14,671 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Assets | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||
Bank of America | $ | 4,817 | $ | 1,603 | $ | — $ | 3,214 | ||||
Bank of Montreal | 536 | 536 | — | — | |||||||
Bank of New York | 1,503 | 976 | — | 527 | |||||||
Barclays | 1,002 | 343 | 659 | — | |||||||
Citigroup | 95 | 48 | 47 | — | |||||||
JPMorgan Chase | 5,539 | 4,187 | 1,352 | — | |||||||
Merrill Lynch | 119 | — | — | 119 | |||||||
Royal Bank of Canada | 660 | 642 | — | 18 | |||||||
State Street | 380 | 12 | — | 368 | |||||||
Toronto Dominion Bank | 20 | — | — | 20 | |||||||
Total | $ | 14,671 | $ | 8,347 | $ | 2,058 | $ | 4,266 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 413
Russell Investment Company
Strategic Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 1,668 | $ | — $ | 1,668 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 9,964 | — | 9,964 | |||||
Options Written Contracts | Options written, at fair value | 425 | — | 425 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 348 | — | 348 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 795 | — | 795 | |||||
Total Financial and Derivative Liabilities | 13,200 | — | 13,200 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (2,455 | ) | — | (2,455 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 10,745 | $ | — $ | 10,745 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 1,603 | $ | 1,603 | $ | — | $ — | ||
Bank of Montreal | 1,315 | 536 | — | 779 | |||||
Bank of New York | 976 | 976 | — | — | |||||
Barclays | 343 | 343 | — | — | |||||
Citigroup | 219 | 48 | — | 171 | |||||
HSBC | 29 | — | — | 29 | |||||
JPMorgan Chase | 4,187 | 4,187 | — | — | |||||
Merrill Lynch | 425 | — | — | 425 | |||||
Morgan Stanley | 1 | — | — | 1 | |||||
Royal Bank of Canada | 1,568 | 642 | — | 926 | |||||
State Street | 12 | 12 | — | — | |||||
UBS | 67 | — | — | 67 | |||||
Total | $ | 10,745 | $ | 8,347 | $ | — | $ 2,398 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
414 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 4,989,096 |
Investments, at fair value(>) | 5,007,228 | |
Cash | 69,035 | |
Cash (restricted)(a)(b)(c) | 44,960 | |
Foreign currency holdings(^) | 13,166 | |
Unrealized appreciation on foreign currency exchange contracts | 13,225 | |
Receivables: | ||
Dividends and interest | 29,554 | |
Dividends from affiliated funds | 215 | |
Investments sold | 160,288 | |
Fund shares sold | 7,181 | |
Investments matured | 615 | |
Variation margin on futures contracts | 13,755 | |
Other receivable | 111 | |
Prepaid expenses | 54 | |
Total return swap contracts, at fair value(8) | 589 | |
Interest rate swap contracts, at fair value(•) | 5,490 | |
Total assets | 5,365,466 | |
Liabilities | ||
Payables: | ||
Due to broker (d)(e) | 11,402 | |
Investments purchased | 344,558 | |
Fund shares redeemed | 5,265 | |
Accrued fees to affiliates | 2,679 | |
Other accrued expenses | 917 | |
Variation margin on futures contracts | 1,668 | |
Deferred capital gains tax liability | 92 | |
Other payable | 171 | |
Unrealized depreciation on foreign currency exchange contracts | 9,964 | |
Options written, at fair value(x) | 425 | |
Interest rate swap contracts, at fair value(•) | 348 | |
Credit default swap contracts, at fair value | 795 | |
Total liabilities | 378,284 | |
Commitments and Contingencies (1) | ||
Net Assets | $ | 4,987,182 |
(1) See note 9 in the Notes to Financial Statements for a detailed description of commitments and contingencies. |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 415
Russell Investment Company
Strategic Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 18,397 | |
Accumulated net realized gain (loss) | (134,592 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 18,040 | ||
Futures contracts | 14,446 | ||
Options written | 94 | ||
Total return swap contracts | 589 | ||
Interest rate swap contracts | 3,674 | ||
Credit default swap contracts | (1,126 | ) | |
Investments matured | 615 | ||
Foreign currency-related transactions | 3,347 | ||
Other investments | (1,698 | ) | |
Shares of beneficial interest | 4,674 | ||
Additional paid-in capital | 5,060,722 | ||
Net Assets | $ | 4,987,182 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 10.69 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 11.11 | |
Class A — Net assets | $ | 46,478,550 | |
Class A — Shares outstanding ($.01 par value) | 4,349,525 | ||
Net asset value per share: Class C(#) | $ | 10.67 | |
Class C — Net assets | $ | 47,637,512 | |
Class C — Shares outstanding ($.01 par value) | 4,464,835 | ||
Net asset value per share: Class E(#) | $ | 10.61 | |
Class E — Net assets | $ | 6,167,332 | |
Class E — Shares outstanding ($.01 par value) | 581,420 | ||
Net asset value per share: Class I(#) | $ | 10.56 | |
Class I — Net assets | $ | 751,175,554 | |
Class I — Shares outstanding ($.01 par value) | 71,131,372 | ||
Net asset value per share: Class R6(#) | $ | 10.60 | |
Class R6 — Net assets | $ | 602,608 | |
Class R6 — Shares outstanding ($.01 par value) | 56,869 | ||
Net asset value per share: Class S(#) | $ | 10.72 | |
Class S — Net assets | $ 3,324,003,456 | ||
Class S — Shares outstanding ($.01 par value) | 310,112,519 | ||
Net asset value per share: Class T(#) | $ | 10.72 | |
Class T — Net assets | $ | 8,168,681 | |
Class T — Shares outstanding ($.01 par value) | 762,190 | ||
Net asset value per share: Class Y(#) | $ | 10.58 | |
Class Y — Net assets | $ | 802,948,048 | |
Class Y — Shares outstanding ($.01 par value) | 75,921,206 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 13,275 | |
(x) Premiums received on options written | $ | 519 | |
(+) Credit default swap contracts - premiums paid (received) | $ | 331 | |
(•) Interest rate swap contracts - premiums paid (received) | $ | 1,468 | |
(8) Total return swap contracts - premiums paid (received) | $ | — | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 211,769 | |
(a) Cash Collateral for Futures | $ | 28,670 | |
(b) Cash Collateral for Swaps | $ | 10,593 | |
(c) Cash Collateral for TBAs | $ | 5,697 |
See accompanying notes which are an integral part of the financial statements.
416 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | ||
(d) Due to Broker for Futures | $ | 121 |
(e) Due to Broker for Swaps | $ | 11,281 |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 417
Russell Investment Company
Strategic Bond Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 94 | |
Dividends from affiliated funds | 1,023 | ||
Interest | 67,783 | ||
Total investment income | 68,900 | ||
Expenses | |||
Advisory fees | 12,206 | ||
Administrative fees | 1,243 | ||
Custodian fees | 565 | ||
Distribution fees - Class A | 62 | ||
Distribution fees - Class C | 192 | ||
Transfer agent fees - Class A | 49 | ||
Transfer agent fees - Class C | 51 | ||
Transfer agent fees - Class E | 61 | ||
Transfer agent fees - Class I | 697 | ||
Transfer agent fees - Class R6 | —** | ||
Transfer agent fees - Class S | 3,125 | ||
Transfer agent fees - Class T | 1 | ||
Transfer agent fees - Class Y | 19 | ||
Professional fees | 132 | ||
Registration fees | 116 | ||
Shareholder servicing fees - Class C | 64 | ||
Shareholder servicing fees - Class E | 76 | ||
Trustees’ fees | 95 | ||
Printing fees | 166 | ||
Miscellaneous | 22 | ||
Expenses before reductions | 18,942 | ||
Expense reductions | (1,062 | ) | |
Net expenses | 17,880 | ||
Net investment income (loss) | 51,020 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | (58,299 | ) | |
Futures contracts | (40,966 | ) | |
Options written | 2,028 | ||
Total return swap contracts | (3,226 | ) | |
Interest rate swap contracts | 10 | ||
Credit default swap contracts | 810 | ||
Foreign currency-related transactions | (18,210 | ) | |
Net realized gain (loss) | (117,853 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | (7,302 | ) | |
Futures contracts | 12,003 | ||
Options written | (164 | ) | |
Total return swap contracts | 679 | ||
Interest rate swap contracts | 2,923 | ||
Credit default swap contracts | (1,243 | ) | |
Investment matured | 804 | ||
Foreign currency-related transactions | 7,248 | ||
Other investments | 25 |
See accompanying notes which are an integral part of the financial statements.
418 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net change in unrealized appreciation (depreciation) | 14,973 | ||
Net realized and unrealized gain (loss) | (102,880 | ) | |
Net Increase (Decrease) in Net Assets from Operations | $ | (51,860 | ) |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 419
Russell Investment Company
Strategic Bond Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 51,020 | $ | 111,417 | ||
Net realized gain (loss) | (117,853 | ) | 129,714 | |||
Net change in unrealized appreciation (depreciation) | 14,973 | 37,418 | ||||
Net increase (decrease) in net assets from operations | (51,860 | ) | 278,549 | |||
Distributions | ||||||
From net investment income | ||||||
Class A | (395 | ) | (1,012 | ) | ||
Class C | (229 | ) | (629 | ) | ||
Class E | (766 | ) | (2,179 | ) | ||
Class I | (9,725 | ) | (23,706 | ) | ||
Class R6 | (6 | ) | (3 | ) | ||
Class S | (27,514 | ) | (64,492 | ) | ||
Class T | (—)** | — | ||||
Class Y | (9,049 | ) | (29,383 | ) | ||
From net realized gain | ||||||
Class A | (1,400 | ) | (852 | ) | ||
Class C | (1,465 | ) | (966 | ) | ||
Class E | (3,505 | ) | (1,887 | ) | ||
Class I | (29,900 | ) | (17,991 | ) | ||
Class R6 | (17 | ) | — | |||
Class S | (82,265 | ) | (51,248 | ) | ||
Class Y | (26,610 | ) | (22,781 | ) | ||
Net decrease in net assets from distributions | (192,846 | ) | (217,129 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (287,566 | ) | (740,336 | ) | ||
Total Net Increase (Decrease) in Net Assets | (532,272 | ) | (678,916 | ) | ||
Net Assets | ||||||
Beginning of period | 5,519,454 | 6,198,370 | ||||
End of period | $ | 4,987,182 | $ | 5,519,454 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 18,397 | $ | 15,061 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
420 Strategic Bond Fund
Russell Investment Company
Strategic Bond Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 300 | $ | 3,168 | 1,464 | $ | 15,992 | ||||||
Proceeds from reinvestment of distributions | 162 | 1,703 | 168 | 1,820 | ||||||||
Payments for shares redeemed | (1,182 | ) | (12,601 | ) | (1,467 | ) | (16,206 | ) | ||||
Net increase (decrease) | (720 | ) | (7,730 | ) | 165 | 1,606 | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 295 | 3,126 | 563 | 6,198 | ||||||||
Proceeds from reinvestment of distributions | 160 | 1,677 | 147 | 1,575 | ||||||||
Payments for shares redeemed | (1,111 | ) | (11,797 | ) | (1,252 | ) | (13,764 | ) | ||||
Net increase (decrease) | (656 | ) | (6,994 | ) | (542 | ) | (5,991 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 368 | 3,926 | 2,842 | 31,560 | ||||||||
Proceeds from reinvestment of distributions | 401 | 4,167 | 354 | 3,794 | ||||||||
Payments for shares redeemed | (12,200 | ) | (127,850 | ) | (2,165 | ) | (23,668 | ) | ||||
Net increase (decrease) | (11,431 | ) | (119,757 | ) | 1,031 | 11,686 | ||||||
Class I | ||||||||||||
Proceeds from shares sold | 6,965 | 73,202 | 22,335 | 244,249 | ||||||||
Proceeds from reinvestment of distributions | 3,793 | 39,327 | 3,858 | 41,237 | ||||||||
Payments for shares redeemed | (42,988 | ) | (449,814 | ) | (29,972 | ) | (324,761 | ) | ||||
Net increase (decrease) | (32,230 | ) | (337,285 | ) | (3,779 | ) | (39,275 | ) | ||||
Class R6(1) | ||||||||||||
Proceeds from shares sold | 7 | 70 | 61 | 676 | ||||||||
Proceeds from reinvestment of distributions | 2 | 23 | —** | 3 | ||||||||
Payments for shares redeemed | (13 | ) | (136 | ) | (—)** | (3 | ) | |||||
Net increase (decrease) | (4 | ) | (43 | ) | 61 | 676 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 76,928 | 817,020 | 70,965 | 789,298 | ||||||||
Proceeds from reinvestment of distributions | 10,337 | 108,745 | 10,554 | 114,325 | ||||||||
Payments for shares redeemed | (55,789 | ) | (592,935 | ) | (103,329 | ) | (1,138,615 | ) | ||||
Net increase (decrease) | 31,476 | 332,830 | (21,810 | ) | (234,992 | ) | ||||||
Class T(2) | ||||||||||||
Proceeds from shares sold | 762 | 8,143 | — | — | ||||||||
Payments for shares redeemed | (—)** | (3 | ) | — | — | |||||||
Net increase (decrease) | 762 | 8,140 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 3,819 | 40,098 | 6,591 | 71,207 | ||||||||
Proceeds from reinvestment of distributions | 3,429 | 35,606 | 4,879 | 52,164 | ||||||||
Payments for shares redeemed | (22,217 | ) | (232,431 | ) | (54,713 | ) | (597,417 | ) | ||||
Net increase (decrease) | (14,969 | ) | (156,727 | ) | (43,243 | ) | (474,046 | ) | ||||
Total increase (decrease) | (27,772 | ) | $ | (287,566 | ) | (68,117 | ) | $ | (740,336 | ) |
** Less than 500 shares.
(1) For the period March 1, 2016 (commencement of operations) to October 30, 2016.
(2) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 421
Russell Investment Company
Strategic Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 11.18 | .09 | (.20 | ) | (.11 | ) | (.08 | ) | (.30 | ) | ||||||
October 31, 2016 | 11.04 | .18 | .33 | .51 | (.20 | ) | (.17 | ) | ||||||||
October 31, 2015 | 11.26 | .14 | .03 | .17 | (.17 | ) | (.22 | ) | ||||||||
October 31, 2014 | 11.01 | .15 | .29 | .44 | (.14 | ) | (.05 | ) | ||||||||
October 31, 2013 | 11.50 | .17 | (.24 | ) | (.07 | ) | (.18 | ) | (.24 | ) | ||||||
October 31, 2012 | 10.95 | .26 | .64 | .90 | (.25 | ) | (.10 | ) | ||||||||
Class C | ||||||||||||||||
April 30, 2017* | 11.16 | .05 | (.20 | ) | (.15 | ) | (.04 | ) | (.30 | ) | ||||||
October 31, 2016 | 11.02 | .10 | .33 | .43 | (.12 | ) | (.17 | ) | ||||||||
October 31, 2015 | 11.25 | .06 | .03 | .09 | (.10 | ) | (.22 | ) | ||||||||
October 31, 2014 | 11.01 | .07 | .27 | .34 | (.05 | ) | (.05 | ) | ||||||||
October 31, 2013 | 11.49 | .08 | (.23 | ) | (.15 | ) | (.09 | ) | (.24 | ) | ||||||
October 31, 2012 | 10.95 | .17 | .64 | .81 | (.17 | ) | (.10 | ) | ||||||||
Class E | ||||||||||||||||
April 30, 2017* | 11.09 | .09 | (.20 | ) | (.11 | ) | (.07 | ) | (.30 | ) | ||||||
October 31, 2016 | 10.95 | .18 | .33 | .51 | (.20 | ) | (.17 | ) | ||||||||
October 31, 2015 | 11.18 | .14 | .02 | .16 | (.17 | ) | (.22 | ) | ||||||||
October 31, 2014 | 10.94 | .15 | .28 | .43 | (.14 | ) | (.05 | ) | ||||||||
October 31, 2013 | 11.42 | .16 | (.22 | ) | (.06 | ) | (.18 | ) | (.24 | ) | ||||||
October 31, 2012 | 10.88 | .26 | .64 | .90 | (.26 | ) | (.10 | ) | ||||||||
Class I | ||||||||||||||||
April 30, 2017* | 11.05 | .10 | (.20 | ) | (.10 | ) | (.09 | ) | (.30 | ) | ||||||
October 31, 2016 | 10.92 | .21 | .32 | .53 | (.23 | ) | (.17 | ) | ||||||||
October 31, 2015 | 11.14 | .17 | .04 | .21 | (.21 | ) | (.22 | ) | ||||||||
October 31, 2014 | 10.91 | .18 | .28 | .46 | (.18 | ) | (.05 | ) | ||||||||
October 31, 2013 | 11.39 | .20 | (.23 | ) | (.03 | ) | (.21 | ) | (.24 | ) | ||||||
October 31, 2012 | 10.85 | .29 | .64 | .93 | (.29 | ) | (.10 | ) | ||||||||
Class R6 | ||||||||||||||||
April 30, 2017* | 11.09 | .11 | (.20 | ) | (.09 | ) | (.10 | ) | (.30 | ) | ||||||
October 31, 2016(8) | 10.71 | .14 | .34 | .48 | (.10 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 11.21 | .10 | (.20 | ) | (.10 | ) | (.09 | ) | (.30 | ) | ||||||
October 31, 2016 | 11.07 | .21 | .33 | .54 | (.23 | ) | (.17 | ) | ||||||||
October 31, 2015 | 11.29 | .17 | .03 | .20 | (.20 | ) | (.22 | ) | ||||||||
October 31, 2014 | 11.05 | .18 | .28 | .46 | (.17 | ) | (.05 | ) | ||||||||
October 31, 2013 | 11.53 | .19 | (.22 | ) | (.03 | ) | (.21 | ) | (.24 | ) | ||||||
October 31, 2012 | 10.98 | .28 | .65 | .93 | (.28 | ) | (.10 | ) | ||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 10.55 | .03 | .15 | .18 | (.01 | ) | — | |||||||||
Class Y | ||||||||||||||||
April 30, 2017* | 11.07 | .11 | (.20 | ) | (.09 | ) | (.10 | ) | (.30 | ) | ||||||
October 31, 2016 | 10.93 | .23 | .33 | .56 | (.25 | ) | (.17 | ) | ||||||||
October 31, 2015 | 11.15 | .19 | .03 | .22 | (.22 | ) | (.22 | ) | ||||||||
October 31, 2014 | 10.92 | .19 | .27 | .46 | (.18 | ) | (.05 | ) | ||||||||
October 31, 2013 | 11.40 | .21 | (.22 | ) | (.01 | ) | (.23 | ) | (.24 | ) | ||||||
October 31, 2012 | 10.86 | .30 | .64 | .94 | (.30 | ) | (.10 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
422 Strategic Bond Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(d)(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate)(b)(k) | |||||||||
(.38 | ) | 10.69 | (.83 | ) | 46,479 | 1.01 | .97 | 1.70 | 75 | ||||||||
(.37 | ) | 11.18 | 4.79 | 56,663 | 1.02 | .96 | 1.66 | 203 | |||||||||
(.39 | ) | 11.04 | 1.57 | 54,123 | 1.04 | .98 | 1.29 | 152 | |||||||||
(.19 | ) | 11.26 | 4.03 | 64,810 | 1.03 | 1.00 | 1.35 | 133 | |||||||||
(.42 | ) | 11.01 | (.62 | ) | 64,310 | 1.03 | 1.01 | 1.50 | 104 | ||||||||
(.35 | ) | 11.50 | 8.44 | 101,799 | 1.02 | 1.00 | 2.32 | 186 | |||||||||
(.34 | ) | 10.67 | (1.26 | ) | 47,638 | 1.76 | 1.72 | .96 | 75 | ||||||||
(.29 | ) | 11.16 | 3.92 | 57,161 | 1.77 | 1.71 | .91 | 203 | |||||||||
(.32 | ) | 11.02 | .78 | 62,412 | 1.79 | 1.73 | .54 | 152 | |||||||||
(.10 | ) | 11.25 | 3.15 | 69,413 | 1.78 | 1.75 | .60 | 133 | |||||||||
(.33 | ) | 11.01 | (1.34 | ) | 81,015 | 1.78 | 1.76 | .74 | 104 | ||||||||
(.27 | ) | 11.49 | 7.56 | 107,160 | 1.77 | 1.75 | 1.56 | 186 | |||||||||
(.37 | ) | 10.61 | (.92 | ) | 6,167 | 1.01 | .96 | 1.67 | 75 | ||||||||
(.37 | ) | 11.09 | 4.84 | 133,209 | 1.02 | .96 | 1.65 | 203 | |||||||||
(.39 | ) | 10.95 | 1.50 | 120,286 | 1.04 | .98 | 1.29 | 152 | |||||||||
(.19 | ) | 11.18 | 3.96 | 146,158 | 1.03 | 1.00 | 1.34 | 133 | |||||||||
(.42 | ) | 10.94 | (.59 | ) | 182,211 | 1.03 | 1.02 | 1.46 | 104 | ||||||||
(.36 | ) | 11.42 | 8.46 | 164,834 | 1.02 | .97 | 2.33 | 186 | |||||||||
(.39 | ) | 10.56 | (.79 | ) | 751,175 | .71 | .69 | 1.98 | 75 | ||||||||
(.40 | ) | 11.05 | 5.06 | 1,142,325 | .69 | .67 | 1.94 | 203 | |||||||||
(.43 | ) | 10.92 | 1.89 | 1,169,757 | .71 | .69 | 1.58 | 152 | |||||||||
(.23 | ) | 11.14 | 4.20 | 1,214,059 | .70 | .70 | 1.64 | 133 | |||||||||
(.45 | ) | 10.91 | (.24 | ) | 1,272,388 | .70 | .70 | 1.79 | 104 | ||||||||
(.39 | ) | 11.39 | 8.78 | 1,312,829 | .69 | .69 | 2.63 | 186 | |||||||||
(.40 | ) | 10.60 | (.74 | ) | 603 | .61 | .59 | 2.09 | 75 | ||||||||
(.10 | ) | 11.09 | 4.48 | 674 | .61 | .58 | 1.93 | 203 | |||||||||
(.39 | ) | 10.72 | (.79 | ) | 3,324,003 | .76 | .71 | 1.97 | 75 | ||||||||
(.40 | ) | 11.21 | 5.04 | 3,123,604 | .78 | .71 | 1.91 | 203 | |||||||||
(.42 | ) | 11.07 | 1.82 | 3,325,522 | .79 | .73 | 1.54 | 152 | |||||||||
(.22 | ) | 11.29 | 4.19 | 4,052,322 | .78 | .75 | 1.60 | 133 | |||||||||
(.45 | ) | 11.05 | (.34 | ) | 4,152,586 | .78 | .76 | 1.72 | 104 | ||||||||
(.38 | ) | 11.53 | 8.71 | 3,773,716 | .77 | .75 | 2.55 | 186 | |||||||||
(.01 | ) | 10.72 | 1.67 | 8,169 | .77 | .60 | 2.40 | 75 | |||||||||
(.40 | ) | 10.58 | (.63 | ) | 802,948 | .57 | .56 | 2.11 | 75 | ||||||||
(.42 | ) | 11.07 | 5.27 | 1,005,818 | .58 | .55 | 2.07 | 203 | |||||||||
(.44 | ) | 10.93 | 2.00 | 1,466,270 | .59 | .57 | 1.70 | 152 | |||||||||
(.23 | ) | 11.15 | 4.31 | 1,778,627 | .59 | .59 | 1.75 | 133 | |||||||||
(.47 | ) | 10.92 | (.15 | ) | 2,522,793 | .58 | .58 | 1.90 | 104 | ||||||||
(.40 | ) | 11.40 | 8.89 | 2,585,753 | .59 | .59 | 2.73 | 186 |
See accompanying notes which are an integral part of the financial statements.
Strategic Bond Fund 423
Russell Investment Company
Strategic Bond Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 1,914,724 |
Administration fees | 198,285 | |
Distribution fees | 39,523 | |
Shareholder servicing fees | 11,355 | |
Transfer agent fees | 486,743 | |
Trustee fees | 28,742 | |
$ | 2,679,372 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||
affiliated company are as follows: | |||||||||||||
Fair Value, | Change in | ||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||
U.S. Cash Management Fund | $ | 405,876 | $ 1,950,430 | $ 2,144,514 | $ | — | $ (23) | $ 211,769 | $ | 1,023 | $ | — | |
$ | 405,876 | $ 1,950,430 | $ 2,144,514 | $ | — | $ (23) | $ 211,769 | $ | 1,023 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 5,000,537,803 | |||
Unrealized Appreciation | $ | 24,653,260 | |||
Unrealized Depreciation | (17,963,043 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 6,690,217 |
See accompanying notes which are an integral part of the financial statements.
424 Strategic Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 987.70 | $ | 1,020.68 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 4.09 | $ | 4.16 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.83% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 983.90 | $ | 1,016.96 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 7.77 | $ | 7.90 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 1.58% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 987.30 | $ | 1,020.68 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 4.09 | $ | 4.16 | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 0.83% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
Investment Grade Bond Fund 425
Russell Investment Company
Investment Grade Bond Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class I | Performance | expenses) | Class T | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | March 16, 2017 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 989.20 | $ | 1,022.27 | April 30, 2017 | $ | 1,015.20 | $ | 1,022.61 | |||
Expenses Paid During Period* | $ | 2.52 | $ | 2.56 | Expenses Paid During Period* | $ | 0.55 | $ | 2.21 | |||
* Expenses are equal to the Fund's annualized expense ratio of 0.51% | * Expenses are equal to the Fund's annualized expense ratio of 0.44% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the 45-day period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 45/365 (to reflect the period since | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | commencement of operations). May reflect amounts waived and/or reimbursed. | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | Without any waivers and/or reimbursements, expenses would have been higher. | |||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
Hypothetical | 0.44% (representing the six-month period annualized), multiplied by the | |||||||||||
Performance (5% | average account value over the period, multiplied by 181/365 (to reflect the | |||||||||||
Actual | return before | on-half year period). | ||||||||||
Class R6 | Performance | expenses) | ||||||||||
Beginning Account Value | Hypothetical | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | Performance (5% | |||||||
Ending Account Value | Actual | return before | ||||||||||
April 30, 2017 | $ | 989.10 | $ | 1,022.76 | Class Y | Performance | expenses) | |||||
Expenses Paid During Period* | $ | 2.02 | $ | 2.06 | Beginning Account Value | |||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.41% | Ending Account Value | |||||||||||
(representing the six month period annualized), multiplied by the average | April 30, 2017 | $ | 989.90 | $ | 1,022.91 | |||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | Expenses Paid During Period* | $ | 1.87 | $ | 1.91 | |||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. | * Expenses are equal to the Fund's annualized expense ratio of 0.38% | |||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
Hypothetical | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
Performance (5% | year period). | |||||||||||
Actual | return before | |||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 988.90 | $ | 1,021.97 | ||||||||
Expenses Paid During Period* | $ | 2.81 | $ | 2.86 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.57% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. |
426 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Long-Term Investments - 95.8% | Series 2016-3 Class A2A | |||||||
Asset-Backed Securities - 6.0% | 1.360% due 04/20/19 | 252 | 252 | |||||
ACE Securities Corp. Home Equity Loan | Capital One Multi-Asset Execution Trust | |||||||
Trust | Series 2016-A1 Class A1 | |||||||
Series 2005-HE3 Class M2 | 0.931% due 02/15/22 (Ê) | 851 | 856 | |||||
1.657% due 05/25/35 (Ê) | 898 | 897 | Series 2017-A2 Class A2 | |||||
ACE Securities Corp. Mortgage Loan | 1.393% due 01/15/25 (Ê) | 454 | 454 | |||||
Trust | Series 2017-A3 Class A3 | |||||||
Series 2007-D1 Class A2 | 2.430% due 01/15/25 | 495 | 501 | |||||
6.336% due 02/25/38 (Þ) | 800 | 742 | CarFinance Capital Auto Trust | |||||
Ajax Mortgage Loan Trust | Series 2015-1A Class A | |||||||
Series 2016-C Class A | 1.750% due 06/15/21 (Þ) | 211 | 211 | |||||
4.000% due 10/25/57 (Þ) | 298 | 297 | ||||||
American Express Credit Account Mater | CarMax Auto Owner Trust | |||||||
Trust | Series 2016-4 Class A3 | |||||||
Series 2017-1 Class A | 1.400% due 08/15/21 | 568 | 563 | |||||
1.930% due 09/15/22 | 705 | 707 | Series 2017-2 Class A3 | |||||
AmeriCredit Automobile Receivables | 1.930% due 03/15/22 | 597 | 597 | |||||
Trust | Centex Home Equity Loan Trust | |||||||
Series 2013-2 Class D | Series 2003-B Class AF4 | |||||||
2.420% due 05/08/19 | 970 | 973 | 3.735% due 02/25/32 | 2,145 | 2,173 | |||
Series 2013-3 Class C | Series 2005-D Class M1 | |||||||
2.380% due 06/10/19 | 983 | 985 | 1.201% due 10/25/35 (Ê) | 80 | 80 | |||
Series 2014-4 Class A3 | Chase Issuance Trust | |||||||
1.270% due 07/08/19 | 356 | 356 | Series 2016-A3 Class A3 | |||||
Series 2015-4 Class A2B | 0.550% due 06/15/23 (Ê) | 877 | 884 | |||||
1.250% due 04/08/19 (Ê) | 141 | 141 | Citibank Credit Card Issuance Trust | |||||
Series 2016-1 Class A2A | Series 2014-A1 Class A1 | |||||||
1.520% due 06/10/19 | 534 | 534 | 2.880% due 01/23/23 | 2,180 | 2,248 | |||
Series 2016-1 Class A2B | Series 2014-A5 Class A5 | |||||||
1.175% due 06/10/19 (Ê) | 234 | 234 | 2.680% due 06/07/23 | 630 | 645 | |||
Series 2016-2 Class A2A | Series 2016-A2 Class A2 | |||||||
1.420% due 10/08/19 | 840 | 840 | 2.190% due 11/20/23 | 720 | 723 | |||
Series 2016-3 Class C | Series 2017-A2 Class A2 | |||||||
2.240% due 04/08/22 | 417 | 413 | 1.740% due 01/19/21 | 1,017 | 1,019 | |||
Series 2016-4 Class C | CountryPlace Manufactured Housing | |||||||
2.410% due 07/08/22 | 314 | 312 | Contract Trust | |||||
Series 2017-1 Class A2A | Series 2005-1 Class A4 | |||||||
1.510% due 05/18/20 | 398 | 398 | 5.200% due 12/15/35 (Þ) | 632 | 655 | |||
Bank of America Credit Card Trust | CPS Auto Receivables Trust | |||||||
Series 2017-A1 Class A1 | Series 2014-D Class A | |||||||
1.950% due 08/15/22 | 544 | 546 | 1.490% due 04/15/19 (Þ) | 11 | 11 | |||
Bayview Opportunity Master Fund Trust | Series 2015-A Class A | |||||||
Series 2016-RN3 Class A1 | 1.530% due 07/15/19 (Þ) | 4 | 4 | |||||
3.598% due 09/28/31 (Þ) | 142 | 141 | Series 2015-B Class A | |||||
Series 2016-RPL3 Class A1 | 1.650% due 11/15/19 (Þ) | 16 | 16 | |||||
3.475% due 07/28/31 (Þ) | 77 | 77 | Series 2015-C Class A | |||||
Series 2017-NPL1 Class A1 | 1.770% due 06/17/19 (Þ) | 156 | 156 | |||||
3.598% due 01/28/32 (Þ) | 234 | 233 | Series 2016-B Class A | |||||
Blackbird Capital Aircraft Lease | 2.070% due 11/15/19 (Þ) | 349 | 350 | |||||
Securitization, Ltd. | Series 2016-C Class A | |||||||
Series 2016-1A Class AA | 1.620% due 01/15/20 (Þ) | 624 | 624 | |||||
2.487% due 12/16/41 (Þ) | 702 | 697 | CPS Auto Trust | |||||
Capital Auto Receivables Asset Trust | Series 2016-D Class A | |||||||
Series 2014-2 Class A4 | 1.500% due 06/15/20 (Þ) | 601 | 600 | |||||
1.620% due 10/22/18 | 436 | 436 | Credit-Based Asset Servicing & | |||||
Series 2016-1 Class A2A | Securitization LLC | |||||||
1.500% due 11/20/18 | 173 | 173 | Series 2004-CB7 Class AF5 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 427
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.685% due 10/25/34 | 194 | 199 | Ford Credit Owners Trust | ||||
Discover Card Execution Note Trust | Series 2017-1 Class A | ||||||
Series 2016-A4 Class A4 | 2.620% due 08/15/28 (Þ) | 283 | 286 | ||||
1.390% due 03/15/22 | 993 | 985 | GCAT | ||||
Drive Auto Receivables Trust | Series 2017-2 Class A1 | ||||||
Series 2017-AA Class A2 | 3.500% due 04/25/47 (Þ) | 251 | 251 | ||||
1.950% due 03/15/19 (Þ) | 1,313 | 1,313 | GM Financial Consumer Automobile | ||||
Series 2017-BA Class A2 | Receivables Trust | ||||||
1.590% due 12/17/18 (Þ) | 628 | 628 | Series 2017-1A Class A3 | ||||
Series 2017-BA Class B | 1.780% due 10/18/21 (Þ) | 502 | 502 | ||||
2.200% due 05/15/20 (Þ) | 203 | 203 | Home Equity Asset Trust | ||||
Dryden 34 Senior Loan Fund | Series 2005-9 Class M1 | ||||||
Series 2017-34A Class AR | 0.580% due 04/25/36 (Ê) | 470 | 442 | ||||
2.182% due 10/15/26 (Ê)(Þ) | 1,480 | 1,481 | Honda Auto Receivables Owner Trust | ||||
DT Auto Owner Trust | Series 2017-1 Class A3 | ||||||
Series 2016-3A Class A | 1.720% due 07/21/21 | 791 | 791 | ||||
1.750% due 11/15/19 (Þ) | 285 | 285 | Series 2017-1 Class A4 | ||||
Series 2016-4A Class A | 2.050% due 06/21/23 | 243 | 244 | ||||
1.440% due 11/15/19 (Þ) | 490 | 490 | Honda Auto Receivables Trust | ||||
Exeter Automobile Receivables Trust | Series 2015-4 Class A2 | ||||||
Series 2015-1A Class A | 0.820% due 07/23/18 | 174 | 174 | ||||
1.600% due 06/17/19 (Þ) | 1 | 1 | HSI Asset Securitization Corp. Trust | ||||
Series 2016-1A Class A | Series 2006-OPT3 Class 2A | ||||||
2.350% due 07/15/20 (Þ) | 96 | 97 | 0.961% due 02/25/36 (Ê) | 655 | 650 | ||
Series 2016-3A Class A | Long Beach Mortgage Loan Trust | ||||||
1.840% due 11/16/20 (Þ) | 609 | 608 | 1.921% due 04/25/35 | 684 | 668 | ||
Fannie Mae Grantor Trust | Series 2004-1 Class M1 | ||||||
Series 2003-T4 Class 1A | 1.741% due 02/25/34 (Ê) | 762 | 759 | ||||
0.390% due 09/26/33 (Ê) | 102 | 102 | Morgan Stanley ABS Capital I, Inc. Trust | ||||
Fannie Mae Whole Loan | Series 2003-NC6 Class M1 | ||||||
Series 2003-W5 Class A | 1.725% due 06/25/33 (Ê) | 171 | 167 | ||||
0.390% due 04/25/33 (Ê) | 28 | 27 | Series 2003-NC7 Class M1 | ||||
Series 2003-W9 Class A | 1.575% due 06/25/33 (Ê) | 155 | 150 | ||||
0.423% due 06/25/33 (Ê) | 41 | 40 | NYMT Residential | ||||
First Investors Auto Owner Trust | Series 2016-RP1A Class A | ||||||
Series 2016-2A Class A1 | 4.000% due 03/25/21 (Þ) | 78 | 77 | ||||
1.530% due 11/16/20 (Þ) | 360 | 359 | Option One Mortgage Loan Trust | ||||
Flagship Credit Auto Trust | Series 2004-3 Class M1 | ||||||
Series 2014-2 Class A | 1.314% due 11/25/34 (Ê) | 1,208 | 1,183 | ||||
1.430% due 12/16/19 (Þ) | 8 | 8 | Park Place Securities, Inc. | ||||
Series 2015-1 Class A | Series 2004-WHQ2 Class M2 | ||||||
1.630% due 06/15/20 (Þ) | 2 | 2 | 1.470% due 02/25/35 (Ê) | 1,043 | 1,045 | ||
Series 2015-3 Class A | Series 2005-WCH1 Class M2 | ||||||
2.380% due 10/15/20 (Þ) | 105 | 105 | 1.305% due 01/25/36 (Ê) | 169 | 168 | ||
Series 2016-2 Class A1 | RAMP Trust | ||||||
2.280% due 05/15/20 | 136 | 136 | Series 2003-RS2 Class AII | ||||
Series 2016-3 Class A1 | 0.850% due 03/25/33 (Ê) | 35 | 32 | ||||
1.610% due 12/15/19 (Þ) | 459 | 459 | Santander Drive Auto Receivables Trust | ||||
Series 2016-4 Class A1 | Series 2013-1 Class D | ||||||
1.470% due 03/16/20 (Þ) | 337 | 336 | 2.270% due 01/15/19 | 1,430 | 1,433 | ||
Ford Credit Auto Owner Trust | Series 2014-4 Class B | ||||||
Series 2017-A Class A4 | 1.820% due 05/15/19 | 79 | 79 | ||||
1.920% due 04/15/22 | 1,259 | 1,261 | Series 2015-2 Class B | ||||
Ford Credit Floorplan Master Owner | 1.830% due 01/15/20 | 1,274 | 1,275 | ||||
Trust | Series 2015-4 Class A3 | ||||||
Series 2016-5 Class A1 | 1.580% due 09/16/19 | 302 | 302 | ||||
1.950% due 11/15/21 | 282 | 282 | Series 2017-1 Class A2 |
See accompanying notes which are an integral part of the financial statements.
428 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
1.490% due 02/18/20 | 162 | 162 | Corporate Bonds and Notes - 24.1% | ||||
Saxon Asset Securities Trust | 21st Century Fox America, Inc. | ||||||
Series 2004-1 Class A | 6.900% due 08/15/39 | 625 | 808 | ||||
0.695% due 03/25/35 (Ê) | 57 | 53 | 6.150% due 02/15/41 | 625 | 759 | ||
Specialty Underwriting & Residential | 3M Co. | ||||||
Finance Trust | 3.875% due 06/15/44 | 200 | 203 | ||||
Series 2003-BC1 Class A | Abbott Laboratories | ||||||
0.850% due 01/25/34 (Ê) | 25 | 23 | 2.900% due 11/30/21 | 1,297 | 1,310 | ||
Structured Asset Investment Loan Trust | 3.750% due 11/30/26 | 815 | 825 | ||||
Series 2005-HE3 Class M1 | 4.900% due 11/30/46 | 207 | 217 | ||||
1.711% due 09/25/35 (Ê) | 1,070 | 1,056 | AbbVie, Inc. | ||||
Terwin Mortgage Trust | 1.800% due 05/14/18 | 604 | 605 | ||||
Series 2006-3 Class 1A2 | 2.500% due 05/14/20 | 1,160 | 1,170 | ||||
0.822% due 04/25/37 (Ê)(Þ) | 791 | 779 | 3.200% due 05/14/26 | 785 | 765 | ||
Toyota Auto Receivables Owner Trust | 4.500% due 05/14/35 | 312 | 313 | ||||
Series 2016-D Class A3 | Aetna, Inc. | ||||||
1.230% due 10/15/20 | 1,704 | 1,694 | 1.700% due 06/07/18 | 125 | 125 | ||
Series 2017-A Class A2A | Albemarle Corp. | ||||||
1.420% due 09/16/19 | 634 | 634 | 4.150% due 12/01/24 | 290 | 303 | ||
United Auto Credit Securitization Trust | Series 30YR | ||||||
Series 2016-2 Class A | 5.450% due 12/01/44 | 815 | 906 | ||||
1.670% due 09/10/18 (Þ) | 370 | 370 | Allstate Corp. (The) | ||||
Vericrest Opportunity Loan Trust | 3.280% due 12/15/26 | 255 | 258 | ||||
Series 2015-NP12 Class A1 | Altria Group, Inc. | ||||||
3.875% due 09/25/45 (Þ) | 121 | 121 | 9.250% due 08/06/19 | 466 | 539 | ||
Series 2015-NPL4 Class A1 | 10.200% due 02/06/39 | 579 | 982 | ||||
3.500% due 02/25/55 (Þ) | 73 | 73 | 5.375% due 01/31/44 | 53 | 62 | ||
Verizon Owner Trust | American Airlines Pass-Through Trust | ||||||
Series 2017-1A Class A | Series 2016-1 Class B | ||||||
2.060% due 09/20/21 (Þ) | 499 | 501 | 5.250% due 01/15/24 | 349 | 362 | ||
VOLT XLV LLC | Series 2017-1B Class B | ||||||
Series 2016-NPL5 Class A1 | 4.950% due 02/15/25 | 230 | 235 | ||||
4.000% due 05/25/46 (Þ) | 259 | 261 | American Airlines, Inc. Pass-Through | ||||
VOLT XLVIII LLC | Certificates Trust | ||||||
Series 2016-2 Class AA | |||||||
Series 2016-NPL8 Class A1 | 3.200% due 06/15/28 | 710 | 696 | ||||
3.500% due 07/25/46 (Þ) | 88 | 88 | |||||
American Express Credit Corp. | |||||||
VOLT XXXIII LLC | 1.875% due 05/03/19 | 480 | 480 | ||||
Series 2015-NPL5 Class A1 | 3.300% due 05/03/27 | 1,252 | 1,244 | ||||
3.500% due 03/25/55 (Þ) | 110 | 111 | |||||
American Honda Finance Corp. | |||||||
VOLT XXXIV LLC | 2.250% due 08/15/19 | 485 | 491 | ||||
Series 2015-NPL7 Class A1 | |||||||
3.250% due 02/25/55 (Þ) | 80 | 80 | American International Group, Inc. | ||||
4.500% due 07/16/44 | 113 | 111 | |||||
VOLT XXXV | 8.175% due 05/15/58 | 160 | 206 | ||||
Series 2016-NPL9 Class A1 | |||||||
3.500% due 09/25/46 (Þ) | 354 | 355 | American Tower Trust I | ||||
3.070% due 03/15/23 (Þ) | 355 | 356 | |||||
VOLT XXXVI LLC | Amgen, Inc. | ||||||
Series 2015-NP10 Class A1 | |||||||
3.625% due 07/25/45 (Þ) | 23 | 23 | Series WI | ||||
4.663% due 06/15/51 | 85 | 86 | |||||
Voya CLO, Ltd. | |||||||
2.480% due 10/20/27 (Þ) | 1,000 | 1,010 | Anadarko Petroleum Corp. | ||||
6.950% due 06/15/19 | 859 | 941 | |||||
World Omni Auto Receivables Trust | 6.450% due 09/15/36 | 752 | 891 | ||||
Series 2017-A Class A3 | 6.600% due 03/15/46 | 382 | 470 | ||||
1.930% due 09/15/22 | 541 | 541 | |||||
Anheuser-Busch InBev Finance, Inc. | |||||||
Series 2017-A Class A4 | 3.650% due 02/01/26 | 2,140 | 2,189 | ||||
2.240% due 06/15/23 | 508 | 508 | 4.900% due 02/01/46 | 971 | 1,061 | ||
52,282 | Anheuser-Busch InBev Worldwide, Inc. |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 429
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
3.750% due 01/15/22 | 800 | 842 | Berkshire Hathaway Energy Co. | ||||
Anthem, Inc. | 5.150% due 11/15/43 | 228 | 261 | ||||
2.250% due 08/15/19 | 405 | 407 | Berkshire Hathaway Finance Corp. | ||||
3.125% due 05/15/22 | 725 | 738 | 1.300% due 08/15/19 | 474 | 471 | ||
Apache Corp. | Broadcom Corp. / Broadcom Cayman | ||||||
6.900% due 09/15/18 | 220 | 234 | Finance, Ltd. | ||||
5.100% due 09/01/40 | 192 | 202 | 3.000% due 01/15/22 (Þ) | 765 | 771 | ||
4.750% due 04/15/43 | 155 | 158 | Burlington Northern Santa Fe LLC | ||||
Apollo Management Holdings, LP | 4.900% due 04/01/44 | 125 | 141 | ||||
4.400% due 05/27/26 (Þ) | 495 | 508 | 3.900% due 08/01/46 | 250 | 246 | ||
Apple, Inc. | 4.125% due 06/15/47 | 304 | 308 | ||||
3.000% due 02/09/24 | 380 | 387 | Capital One Bank USA NA | ||||
4.375% due 05/13/45 | 638 | 665 | Series BKNT | ||||
4.650% due 02/23/46 | 605 | 659 | 2.250% due 02/13/19 | 780 | 783 | ||
3.850% due 08/04/46 | 278 | 269 | Capital One Financial Corp. | ||||
AT&T, Inc. | 2.450% due 04/24/19 | 350 | 352 | ||||
3.000% due 06/30/22 | 835 | 836 | 3.750% due 03/09/27 | 585 | 579 | ||
3.600% due 02/17/23 | 970 | 989 | Cardinal Health, Inc. | ||||
4.250% due 03/01/27 | 715 | 730 | 1.950% due 06/15/18 | 1,070 | 1,072 | ||
4.500% due 05/15/35 | 1,575 | 1,491 | Carlyle Holdings II Finance LLC | ||||
5.250% due 03/01/37 | 737 | 756 | 5.625% due 03/30/43 (Þ) | 720 | 747 | ||
4.300% due 12/15/42 | 123 | 110 | Caterpillar Financial Services Corp. | ||||
4.750% due 05/15/46 | 183 | 172 | 1.350% due 05/18/19 | 390 | 387 | ||
4.550% due 03/09/49 | 1,252 | 1,127 | CBS Corp. | ||||
Series WI | 7.875% due 07/30/30 | 151 | 207 | ||||
5.150% due 03/15/42 | 49 | 49 | 4.600% due 01/15/45 | 340 | 340 | ||
4.500% due 03/09/48 | 486 | 439 | Celgene Corp. | ||||
Athene Global Funding | 2.875% due 08/15/20 | 465 | 474 | ||||
2.750% due 04/20/20 (Þ) | 625 | 626 | 5.000% due 08/15/45 | 224 | 239 | ||
Bank of America Corp. | Charter Communications Operating LLC | ||||||
3.124% due 01/20/23 | 780 | 788 | / Charter Communications Operating | ||||
4.125% due 01/22/24 | 666 | 700 | Capital | ||||
4.200% due 08/26/24 | 95 | 98 | 4.464% due 07/23/22 | 1,020 | 1,085 | ||
3.875% due 08/01/25 | 155 | 159 | 6.384% due 10/23/35 | 641 | 738 | ||
3.248% due 10/21/27 | 652 | 627 | Series WI | ||||
3.824% due 01/20/28 | 1,042 | 1,049 | 3.579% due 07/23/20 | 471 | 487 | ||
3.705% due 04/24/28 | 559 | 560 | 4.908% due 07/23/25 | 965 | 1,035 | ||
6.110% due 01/29/37 | 475 | 556 | 6.484% due 10/23/45 | 85 | 100 | ||
4.244% due 04/24/38 | 325 | 326 | Cigna Corp. | ||||
4.875% due 04/01/44 | 254 | 276 | 5.375% due 02/15/42 | 118 | 138 | ||
Series GMTN | Citibank NA | ||||||
2.625% due 04/19/21 | 735 | 736 | 2.000% due 03/20/19 | 1,015 | 1,019 | ||
4.450% due 03/03/26 | 210 | 217 | Citigroup, Inc. | ||||
2.500% due 09/26/18 | 940 | 948 | |||||
Bank of America NA | 2.750% due 04/25/22 | 494 | 493 | ||||
Series BKNT | 3.875% due 03/26/25 | 415 | 416 | ||||
2.050% due 12/07/18 | 112 | 113 | |||||
6.000% due 10/15/36 | 560 | 696 | 4.600% due 03/09/26 | 435 | 451 | ||
3.200% due 10/21/26 | 516 | 499 | |||||
Bank of New York Mellon Corp. (The) | 4.450% due 09/29/27 | 1,005 | 1,028 | ||||
2.600% due 08/17/20 | 1,225 | 1,246 | |||||
2.200% due 08/16/23 | 715 | 692 | 4.125% due 07/25/28 | 367 | 367 | ||
5.875% due 01/30/42 | 304 | 372 | |||||
Bank One Capital III | |||||||
8.750% due 09/01/30 | 290 | 423 | Cleveland Clinic Foundation (The) | ||||
4.858% due 01/01/14 | 129 | 127 | |||||
Barrick NA Finance LLC | Columbia Property Trust Operating | ||||||
4.400% due 05/30/21 | 290 | 314 | Partnership, LP | ||||
5.750% due 05/01/43 | 535 | 625 | 4.150% due 04/01/25 | 230 | 234 | ||
BB&T Corp. | Comcast Corp. | ||||||
2.050% due 06/19/18 | 825 | 829 | 3.000% due 02/01/24 | 291 | 294 |
See accompanying notes which are an integral part of the financial statements.
430 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
3.300% due 02/01/27 | 565 | 568 | 5.600% due 04/01/44 | 54 | 55 | ||
4.250% due 01/15/33 | 383 | 397 | Enterprise Products Operating LLC | ||||
Corporate Office Properties, LP | 5.250% due 01/31/20 | 760 | 821 | ||||
3.700% due 06/15/21 | 815 | 833 | 4.450% due 02/15/43 | 186 | 182 | ||
CSX Corp. | 5.100% due 02/15/45 | 393 | 417 | ||||
3.800% due 11/01/46 | 275 | 259 | EOG Resources, Inc. | ||||
CVS Health Corp. | 2.450% due 04/01/20 | 660 | 665 | ||||
5.125% due 07/20/45 | 620 | 693 | ERAC USA Finance LLC | ||||
CVS Pass-Through Trust | 2.350% due 10/15/19 (Þ) | 675 | 676 | ||||
4.704% due 01/10/36 (Þ) | 250 | 263 | Exelon Corp. | ||||
Series 2014 | 2.850% due 06/15/20 | 1,060 | 1,079 | ||||
4.163% due 08/11/36 (Þ) | 329 | 331 | 5.625% due 06/15/35 | 112 | 128 | ||
Darden Restaurants, Inc. | Express Scripts Holding Co. | ||||||
6.800% due 10/15/37 | 560 | 697 | 3.000% due 07/15/23 | 690 | 678 | ||
Delmarva Power & Light Co. | Exxon Mobil Corp. | ||||||
4.150% due 05/15/45 | 268 | 276 | 4.114% due 03/01/46 | 123 | 128 | ||
Delta Air Lines, Inc. | Farmers Exchange Capital III | ||||||
2.875% due 03/13/20 | 315 | 318 | 5.454% due 10/15/54 (Þ) | 710 | 732 | ||
Devon Energy Corp. | FedEx Corp. | ||||||
5.600% due 07/15/41 | 131 | 140 | 4.750% due 11/15/45 | 175 | 182 | ||
Devon Financing Co. LLC | 4.550% due 04/01/46 | 235 | 238 | ||||
7.875% due 09/30/31 | 830 | 1,090 | Fifth Third Bank | ||||
Diamond 1 Finance Corp. / Diamond 2 | Series BKNT | ||||||
Finance Corp | 2.375% due 04/25/19 | 605 | 610 | ||||
5.450% due 06/15/23 (Þ) | 1,750 | 1,890 | FirstEnergy Transmission LLC | ||||
6.020% due 06/15/26 (Þ) | 1,035 | 1,140 | 5.450% due 07/15/44 (Þ) | 288 | 319 | ||
8.100% due 07/15/36 (Þ) | 79 | 99 | |||||
8.350% due 07/15/46 (Þ) | 1,286 | 1,664 | Florida Power & Light Co. | ||||
5.950% due 02/01/38 | 175 | 225 | |||||
Discovery Communications LLC | Ford Motor Co. | ||||||
5.625% due 08/15/19 | 279 | 301 | 4.750% due 01/15/43 | 50 | 47 | ||
6.350% due 06/01/40 | 765 | 822 | 5.291% due 12/08/46 | 199 | 201 | ||
Dominion Gas Holdings LLC | Ford Motor Credit Co. LLC | ||||||
2.500% due 12/15/19 | 156 | 158 | 2.551% due 10/05/18 | 970 | 977 | ||
Dominion Resources, Inc. | 3.336% due 03/18/21 | 410 | 416 | ||||
2.962% due 07/01/19 | 498 | 505 | 3.096% due 05/04/23 | 610 | 600 | ||
Dow Chemical Co. (The) | Freeport-McMoRan, Inc. | ||||||
8.550% due 05/15/19 | 380 | 429 | 4.550% due 11/14/24 | 440 | 413 | ||
4.375% due 11/15/42 | 230 | 231 | 5.450% due 03/15/43 | 685 | 584 | ||
Duke Energy Corp. | GE Capital International Funding Co. | ||||||
4.800% due 12/15/45 | 202 | 215 | Unlimited Co | ||||
3.750% due 09/01/46 | 755 | 691 | 4.418% due 11/15/35 | 585 | 625 | ||
Duke Energy Progress LLC | General Electric Co. | ||||||
3.000% due 09/15/21 | 690 | 711 | 5.875% due 01/14/38 | 105 | 134 | ||
4.200% due 08/15/45 | 170 | 175 | 4.500% due 03/11/44 | 335 | 366 | ||
Eastman Chemical Co. | Series GMTN | ||||||
4.650% due 10/15/44 | 177 | 181 | 6.875% due 01/10/39 | 169 | 241 | ||
EI du Pont de Nemours & Co. | General Mills, Inc. | ||||||
4.150% due 02/15/43 | 206 | 205 | 5.650% due 02/15/19 | 195 | 208 | ||
Emera US Finance, LP | General Motors Co. | ||||||
Series WI | 4.875% due 10/02/23 | 525 | 560 | ||||
4.750% due 06/15/46 | 185 | 188 | 6.250% due 10/02/43 | 203 | 222 | ||
Energy Transfer Partners, LP | 5.200% due 04/01/45 | 375 | 365 | ||||
6.625% due 10/15/36 | 347 | 391 | General Motors Financial Co., Inc. | ||||
6.050% due 06/01/41 | 755 | 803 | 2.400% due 05/09/19 | 835 | 837 | ||
EnLink Midstream Partners, LP | 3.200% due 07/13/20 | 600 | 611 | ||||
2.700% due 04/01/19 | 874 | 875 | 3.200% due 07/06/21 | 955 | 964 | ||
4.150% due 06/01/25 | 390 | 392 | 3.450% due 01/14/22 | 825 | 837 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 431
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
5.250% due 03/01/26 | 285 | 307 | ITC Holdings Corp. | ||||
Georgia Power Co. | 5.300% due 07/01/43 | 74 | 84 | ||||
5.950% due 02/01/39 | 230 | 275 | Janus Capital Group, Inc. | ||||
Georgia-Pacific LLC | 4.875% due 08/01/25 | 580 | 622 | ||||
2.539% due 11/15/19 (Þ) | 975 | 985 | Jersey Central Power & Light Co. | ||||
8.875% due 05/15/31 | 395 | 610 | 4.700% due 04/01/24 (Þ) | 457 | 493 | ||
Gilead Sciences, Inc. | John Deere Capital Corp. | ||||||
2.550% due 09/01/20 | 1,015 | 1,028 | 1.650% due 10/15/18 | 460 | 460 | ||
2.950% due 03/01/27 | 372 | 357 | 2.200% due 03/13/20 | 170 | 171 | ||
4.750% due 03/01/46 | 658 | 679 | 2.650% due 01/06/22 | 112 | 113 | ||
GlaxoSmithKline Capital, Inc. | Johnson & Johnson | ||||||
6.375% due 05/15/38 | 152 | 202 | 3.700% due 03/01/46 | 336 | 332 | ||
Glencore Funding LLC | Johnson Controls International PLC | ||||||
4.000% due 03/27/27 (Þ) | 1,199 | 1,194 | 5.125% due 09/14/45 | 465 | 520 | ||
Goldman Sachs Capital I | 4.500% due 02/15/47 | 193 | 197 | ||||
6.345% due 02/15/34 | 1,475 | 1,765 | JPMorgan Chase & Co. | ||||
Goldman Sachs Group, Inc. (The) | 2.250% due 01/23/20 | 550 | 552 | ||||
2.625% due 01/31/19 | 255 | 258 | 2.776% due 04/25/23 | 458 | 456 | ||
2.550% due 10/23/19 | 785 | 793 | 3.875% due 09/10/24 | 605 | 620 | ||
3.625% due 01/22/23 | 153 | 158 | 3.300% due 04/01/26 | 560 | 553 | ||
4.250% due 10/21/25 | 610 | 628 | 4.125% due 12/15/26 | 205 | 212 | ||
3.750% due 02/25/26 | 420 | 427 | 4.250% due 10/01/27 | 275 | 284 | ||
3.850% due 01/26/27 | 985 | 1,001 | 3.625% due 12/01/27 | 474 | 464 | ||
6.750% due 10/01/37 | 620 | 774 | 3.782% due 02/01/28 | 355 | 361 | ||
6.250% due 02/01/41 | 331 | 418 | 6.400% due 05/15/38 | 390 | 508 | ||
4.800% due 07/08/44 | 320 | 343 | 4.260% due 02/22/48 | 673 | 681 | ||
4.750% due 10/21/45 | 244 | 261 | KeyCorp | ||||
Series GMTN | 2.300% due 12/13/18 | 765 | 769 | ||||
2.922% due 10/28/27 (Ê) | 635 | 655 | Kinder Morgan Energy Partners, LP | ||||
Great Plains Energy, Inc. | 4.150% due 02/01/24 | 562 | 578 | ||||
2.500% due 03/09/20 | 430 | 434 | 6.950% due 01/15/38 | 187 | 220 | ||
Zero coupon due 06/15/22 | 560 | 615 | 5.500% due 03/01/44 | 170 | 174 | ||
3.900% due 04/01/27 | 425 | 430 | Kinder Morgan, Inc. | ||||
Halliburton Co. | 5.300% due 12/01/34 | 245 | 251 | ||||
5.000% due 11/15/45 | 200 | 214 | 5.550% due 06/01/45 | 510 | 540 | ||
Hewlett Packard Enterprise Co. | Series GMTN | ||||||
4.400% due 10/15/22 (Þ) | 1 | 1 | 7.800% due 08/01/31 | 201 | 255 | ||
Zero coupon due 10/15/35 | 1,335 | 1,424 | KKR Group Finance Co. III LLC | ||||
Series WI | 5.125% due 06/01/44 (Þ) | 495 | 509 | ||||
Zero coupon due 10/15/22 | 610 | 644 | Kohl's Corp. | ||||
Zero coupon due 10/15/45 | 141 | 146 | 5.550% due 07/17/45 | 825 | 747 | ||
Home Depot, Inc. (The) | Kraft Heinz Foods Co. | ||||||
4.250% due 04/01/46 | 265 | 279 | 4.875% due 02/15/25 (Þ) | 1,090 | 1,167 | ||
Hospitality Properties Trust | 6.875% due 01/26/39 | 195 | 244 | ||||
4.950% due 02/15/27 | 835 | 870 | Series WI | ||||
HSBC Bank USA NA | 2.000% due 07/02/18 | 288 | 289 | ||||
Series BKNT | 2.800% due 07/02/20 | 555 | 564 | ||||
5.875% due 11/01/34 | 575 | 693 | Kroger Co. (The) | ||||
Huntington National Bank (The) | 2.300% due 01/15/19 | 375 | 377 | ||||
2.200% due 11/06/18 | 795 | 798 | Land O' Lakes, Inc. | ||||
Hyundai Capital America | 6.000% due 11/15/22 (Þ) | 960 | 1,061 | ||||
3.100% due 04/05/22 (Þ) | 806 | 806 | Legg Mason, Inc. | ||||
Intel Corp. | 4.750% due 03/15/26 | 580 | 614 | ||||
4.800% due 10/01/41 | 245 | 273 | Lehman Brothers Holdings Capital Trust | ||||
International Paper Co. | VII | ||||||
3.000% due 02/15/27 | 250 | 238 | 5.857% due 11/29/49 (ƒ)(Ø) | 1,450 | — | ||
8.700% due 06/15/38 | 310 | 447 | Liberty Mutual Group, Inc. |
See accompanying notes which are an integral part of the financial statements.
432 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
4.850% due 08/01/44 (Þ) | 206 | 212 | 4.297% due 07/15/54 (Þ) | 650 | 653 | ||
Lockheed Martin Corp. | Mylan NV | ||||||
3.350% due 09/15/21 | 325 | 338 | 3.950% due 06/15/26 | 1,600 | 1,583 | ||
3.800% due 03/01/45 | 55 | 53 | 5.250% due 06/15/46 | 445 | 457 | ||
4.700% due 05/15/46 | 235 | 258 | New York and Presbyterian Hospital | ||||
Lowe's Cos, Inc. | (The) | ||||||
4.050% due 05/03/47 | 232 | 231 | 4.763% due 08/01/16 | 200 | 185 | ||
Lowe's Cos., Inc. | Newell Brands, Inc. | ||||||
3.100% due 05/03/27 | 865 | 865 | 5.000% due 11/15/23 | 705 | 752 | ||
5.125% due 11/15/41 | 50 | 60 | 5.500% due 04/01/46 | 399 | 464 | ||
Marathon Petroleum Corp. | Newmont Mining Corp. | ||||||
6.500% due 03/01/41 | 157 | 177 | 6.250% due 10/01/39 | 150 | 178 | ||
McDonald's Corp. | NextEra Energy Capital Holdings, Inc. | ||||||
2.625% due 01/15/22 | 161 | 162 | 2.700% due 09/15/19 | 352 | 357 | ||
4.600% due 05/26/45 | 52 | 54 | 3.550% due 05/01/27 | 978 | 981 | ||
4.875% due 12/09/45 | 235 | 253 | Noble Energy, Inc. | ||||
McKesson Corp. | 8.250% due 03/01/19 | 496 | 550 | ||||
2.284% due 03/15/19 | 720 | 724 | Norfolk Southern Corp. | ||||
MeadWestvaco Corp. | 2.400% due 05/17/22 | 528 | 529 | ||||
7.375% due 09/01/19 | 335 | 373 | 4.650% due 01/15/46 | 240 | 259 | ||
Medtronic, Inc. | Oracle Corp. | ||||||
3.150% due 03/15/22 | 895 | 927 | 1.900% due 09/15/21 | 680 | 673 | ||
6.500% due 04/15/38 | 250 | 334 | |||||
Series WI | 4.000% due 07/15/46 | 160 | 156 | ||||
4.625% due 03/15/45 | 287 | 312 | |||||
Mercury General Corp. | PACCAR Financial Corp. | ||||||
4.400% due 03/15/27 | 625 | 629 | Series MTN | ||||
MetLife, Inc. | 1.700% due 12/06/18 (Ê) | 510 | 514 | ||||
10.750% due 08/01/39 | 820 | 1,312 | Pacific Gas & Electric Co. | ||||
4.875% due 11/13/43 | 198 | 218 | 4.750% due 02/15/44 | 140 | 155 | ||
Metropolitan Life Global Funding I | PacifiCorp | ||||||
3.450% due 12/18/26 (Þ) | 755 | 768 | 2.950% due 02/01/22 | 465 | 475 | ||
Microsoft Corp. | PECO Energy Co. | ||||||
3.300% due 02/06/27 | 740 | 760 | 1.700% due 09/15/21 | 615 | 602 | ||
3.500% due 02/12/35 | 414 | 405 | PepsiCo, Inc. | ||||
4.100% due 02/06/37 | 465 | 484 | 2.250% due 05/02/22 | 841 | 839 | ||
3.700% due 08/08/46 | 250 | 238 | 4.250% due 10/22/44 | 25 | 26 | ||
Series 30Y | 3.450% due 10/06/46 | 200 | 182 | ||||
4.250% due 02/06/47 | 1,299 | 1,348 | 4.000% due 05/02/47 | 239 | 238 | ||
Morgan Stanley | Pfizer, Inc. | ||||||
2.625% due 11/17/21 | 433 | 433 | 4.125% due 12/15/46 | 295 | 300 | ||
2.553% due 10/24/23 (Ê) | 1,175 | 1,195 | Philip Morris International, Inc. | ||||
3.125% due 07/27/26 | 1,032 | 997 | 1.625% due 02/21/19 | 1,130 | 1,126 | ||
6.375% due 07/24/42 | 238 | 308 | 6.375% due 05/16/38 | 196 | 254 | ||
Plains All American Pipeline, LP / PAA | |||||||
Series 10YR | Finance Corp. | ||||||
3.625% due 01/20/27 | 825 | 827 | 6.650% due 01/15/37 | 259 | 294 | ||
Series 30YR | Praxair, Inc. | ||||||
4.375% due 01/22/47 | 700 | 704 | 3.200% due 01/30/26 | 910 | 930 | ||
Series F | Progress Energy, Inc. | ||||||
3.875% due 04/29/24 | 450 | 465 | 7.050% due 03/15/19 | 118 | 129 | ||
Series GMTN | 7.750% due 03/01/31 | 601 | 844 | ||||
5.500% due 07/24/20 | 270 | 295 | 7.000% due 10/30/31 | 37 | 49 | ||
MPLX, LP | Qwest Corp. | ||||||
4.125% due 03/01/27 | 1,170 | 1,185 | 6.750% due 12/01/21 | 315 | 350 | ||
5.200% due 03/01/47 | 88 | 90 | Raytheon Co. | ||||
Series WI | 6.400% due 12/15/18 | 495 | 533 | ||||
4.500% due 07/15/23 | 520 | 548 | Reynolds American, Inc. | ||||
Mutual of Omaha Insurance Co. |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 433
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.300% due 06/12/18 | 594 | 597 | 2.800% due 07/13/22 | 375 | 381 | ||
6.875% due 05/01/20 | 1,035 | 1,170 | TTX Co. | ||||
4.450% due 06/12/25 | 294 | 314 | 2.250% due 02/01/19 (Þ) | 323 | 323 | ||
8.125% due 05/01/40 | 465 | 641 | Union Pacific Corp. | ||||
6.150% due 09/15/43 | 375 | 456 | 4.050% due 11/15/45 | 270 | 271 | ||
5.850% due 08/15/45 | 112 | 132 | 4.000% due 04/15/47 | 404 | 405 | ||
Rockwell Collins, Inc. | United Parcel Service, Inc. | ||||||
3.200% due 03/15/24 | 248 | 251 | 6.200% due 01/15/38 | 142 | 187 | ||
4.350% due 04/15/47 | 210 | 213 | United Technologies Corp. | ||||
Roper Technologies, Inc. | 1.778% due 05/04/18 | 1,333 | 1,335 | ||||
2.800% due 12/15/21 | 240 | 241 | 4.500% due 06/01/42 | 280 | 303 | ||
Sabine Pass Liquefaction LLC | UnitedHealth Group, Inc. | ||||||
6.250% due 03/15/22 | 994 | 1,115 | 3.875% due 10/15/20 | 100 | 106 | ||
5.750% due 05/15/24 | 206 | 228 | 3.750% due 07/15/25 | 320 | 337 | ||
5.000% due 03/15/27 (Þ) | 160 | 169 | 3.450% due 01/15/27 | 390 | 399 | ||
Sempra Energy | 4.625% due 07/15/35 | 283 | 311 | ||||
9.800% due 02/15/19 | 1,227 | 1,393 | US Bancorp | ||||
3.550% due 06/15/24 | 315 | 322 | 2.200% due 04/25/19 | 520 | 525 | ||
South Carolina Electric & Gas Co. | 2.950% due 07/15/22 | 570 | 578 | ||||
6.050% due 01/15/38 | 330 | 392 | USF&G Capital III | ||||
5.100% due 06/01/65 | 140 | 145 | 8.312% due 07/01/46 (Þ) | 445 | 586 | ||
Southern California Edison Co. | Valero Energy Corp. | ||||||
5.625% due 02/01/36 | 220 | 268 | 6.625% due 06/15/37 | 175 | 208 | ||
Series C | Verizon Communications, Inc. | ||||||
3.600% due 02/01/45 | 295 | 281 | 1.375% due 08/15/19 | 1,015 | 1,002 | ||
Southern Co. (The) | 3.000% due 11/01/21 | 180 | 182 | ||||
2.150% due 09/01/19 | 980 | 980 | 5.150% due 09/15/23 | 615 | 679 | ||
2.350% due 07/01/21 | 455 | 449 | 4.125% due 03/16/27 | 800 | 816 | ||
3.250% due 07/01/26 | 850 | 827 | 4.400% due 11/01/34 | 355 | 340 | ||
4.400% due 07/01/46 | 217 | 216 | 5.250% due 03/16/37 | 125 | 130 | ||
Southern Natural Gas Co. LLC / | 4.672% due 03/15/55 | 2,070 | 1,896 | ||||
Southern Natural Issuing Corp. | Series WI | ||||||
4.400% due 06/15/21 | 440 | 468 | 4.272% due 01/15/36 | 1,672 | 1,562 | ||
Southwest Airlines Co. | 5.012% due 08/21/54 | 187 | 181 | ||||
2.650% due 11/05/20 | 550 | 556 | |||||
Sprint Spectrum Co. LLC / Sprint | Viacom, Inc. | ||||||
Spectrum Co II LLC / Sprint Spectrum | 3.125% due 06/15/22 | 177 | 177 | ||||
Co III LLC | 3.450% due 10/04/26 | 186 | 179 | ||||
Series A-1 | 4.375% due 03/15/43 | 378 | 336 | ||||
3.360% due 09/20/21 (Þ) | 390 | 393 | 5.250% due 04/01/44 | 250 | 249 | ||
Sunoco Logistics Partners Operations, | Virginia Electric & Power Co. | ||||||
LP | Series A | ||||||
5.350% due 05/15/45 | 186 | 186 | 6.000% due 05/15/37 | 213 | 268 | ||
Tennessee Gas Pipeline Co. LLC | Series B | ||||||
8.375% due 06/15/32 | 410 | 521 | 2.950% due 11/15/26 | 475 | 472 | ||
Thermo Fisher Scientific, Inc. | Series C | ||||||
2.400% due 02/01/19 | 280 | 282 | 4.000% due 11/15/46 | 950 | 948 | ||
Time Warner Cable LLC | Volkswagen Group of America Finance | ||||||
6.550% due 05/01/37 | 150 | 174 | LLC | ||||
7.300% due 07/01/38 | 52 | 65 | 2.450% due 11/20/19 (Þ) | 460 | 461 | ||
Time Warner, Inc. | Wachovia Capital Trust II | ||||||
4.750% due 03/29/21 | 1,075 | 1,161 | 1.658% due 01/15/27 (Ê) | 615 | 552 | ||
3.800% due 02/15/27 | 575 | 572 | Walgreens Boots Alliance, Inc. | ||||
6.250% due 03/29/41 | 205 | 236 | 4.800% due 11/18/44 | 209 | 216 | ||
Toyota Motor Credit Corp. | Wal-Mart Stores, Inc. | ||||||
1.550% due 10/18/19 | 714 | 710 | 6.500% due 08/15/37 | 710 | 962 | ||
2.900% due 04/17/24 | 370 | 373 | 6.200% due 04/15/38 | 280 | 368 | ||
WEA Finance LLC / Westfield UK & | |||||||
Series GMTN | Europe Finance PLC |
See accompanying notes which are an integral part of the financial statements.
434 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.700% due 09/17/19 (Þ) | 460 | 464 | BBVA Bancomer SA | ||||
WEC Energy Group, Inc. | 6.750% due 09/30/22 (Þ) | 670 | 758 | ||||
1.650% due 06/15/18 | 440 | 440 | BHP Billiton Finance USA, Ltd. | ||||
WellPoint, Inc. | 5.000% due 09/30/43 | 70 | 80 | ||||
6.375% due 06/15/37 | 430 | 533 | BOC Aviation, Ltd. | ||||
Wells Fargo & Co. | 2.375% due 09/15/21 (Þ) | 300 | 292 | ||||
2.125% due 04/22/19 | 1,165 | 1,171 | BP Capital Markets PLC | ||||
3.069% due 01/24/23 | 1,240 | 1,254 | 3.062% due 03/17/22 | 410 | 420 | ||
3.000% due 10/23/26 | 320 | 308 | 3.994% due 09/26/23 | 255 | 270 | ||
4.650% due 11/04/44 | 583 | 589 | 3.216% due 11/28/23 | 520 | 527 | ||
4.750% due 12/07/46 | 81 | 83 | 3.588% due 04/14/27 | 390 | 398 | ||
Series GMTN | Braskem Finance, Ltd. | ||||||
4.900% due 11/17/45 | 142 | 149 | 6.450% due 02/03/24 | 355 | 378 | ||
Welltower, Inc. | British Telecommunications PLC | ||||||
6.500% due 03/15/41 | 100 | 123 | 9.125% due 12/15/30 | 124 | 187 | ||
Wesleyan University | Canadian Natural Resources, Ltd. | ||||||
4.781% due 07/01/16 | 213 | 202 | 6.250% due 03/15/38 | 192 | 218 | ||
Westlake Chemical Corp. | Canadian Pacific Railway Co. | ||||||
Series WI | 4.800% due 09/15/35 | 260 | 284 | ||||
5.000% due 08/15/46 | 195 | 200 | CDP Financial, Inc. | ||||
Williams Partners, LP | 5.600% due 11/25/39 (Þ) | 545 | 689 | ||||
3.600% due 03/15/22 | 865 | 885 | Cedar Funding III CLO, Ltd. | ||||
6.300% due 04/15/40 | 347 | 399 | Series 2014-3A Class A1 | ||||
5.800% due 11/15/43 | 350 | 382 | 1.863% due 05/20/26 (Ê)(Þ) | 1,800 | 1,808 | ||
Xcel Energy, Inc. | Cenovus Energy, Inc. | ||||||
2.600% due 03/15/22 | 304 | 304 | 6.750% due 11/15/39 | 79 | 89 | ||
ZFS Finance USA Trust V | Commonwealth Bank of Australia | ||||||
6.500% due 05/09/37 (Þ) | 430 | 430 | 2.750% due 03/10/22 (Þ) | 961 | 969 | ||
209,151 | Credit Suisse Group AG | ||||||
International Debt - 7.3% | 3.574% due 01/09/23 (Þ) | 955 | 967 | ||||
Actavis Funding SCS | 4.282% due 01/09/28 (Þ) | 930 | 945 | ||||
3.450% due 03/15/22 | 838 | 862 | Deutsche Telekom International Finance | ||||
BV | |||||||
Series WI | 8.750% due 06/15/30 | 160 | 236 | ||||
4.850% due 06/15/44 | 255 | 260 | |||||
AerCap Ireland Capital, Ltd. / AerCap | DP World, Ltd. | ||||||
Global Aviation Trust | 6.850% due 07/02/37 (Þ) | 90 | 106 | ||||
Series WI | Dryden 37 Senior Loan Fund | ||||||
4.500% due 05/15/21 | 1,103 | 1,166 | Series 2015-37A Class A | ||||
AIA Group, Ltd. | 2.180% due 04/15/27 (Ê)(Þ) | 1,300 | 1,302 | ||||
2.250% due 03/11/19 (Þ) | 207 | 207 | Ecopetrol SA | ||||
America Movil SAB de CV | 4.125% due 01/16/25 | 1,060 | 1,025 | ||||
5.000% due 03/30/20 | 710 | 764 | Encana Corp. | ||||
6.125% due 03/30/40 | 169 | 201 | 6.500% due 05/15/19 | 89 | 96 | ||
AstraZeneca PLC | Fortis, Inc. | ||||||
2.375% due 11/16/20 | 840 | 846 | 2.100% due 10/04/21 (Þ) | 223 | 217 | ||
Bancolombia SA | 3.055% due 10/04/26 (Þ) | 555 | 525 | ||||
5.950% due 06/03/21 | 695 | 765 | Grupo Bimbo SAB de CV | ||||
Bank of Montreal | 4.875% due 06/27/44 (Þ) | 280 | 273 | ||||
2.100% due 12/12/19 | 410 | 412 | HSBC Bank PLC | ||||
1.900% due 08/27/21 | 455 | 447 | 7.650% due 05/01/25 | 385 | 476 | ||
Bank of Nova Scotia | Series 1M | ||||||
2.700% due 03/07/22 | 1,021 | 1,029 | 1.625% due 06/29/49 | 820 | 661 | ||
Barclays PLC | HSBC Holdings PLC | ||||||
3.684% due 01/10/23 | 1,110 | 1,129 | 3.262% due 03/13/23 | 1,029 | 1,042 | ||
4.337% due 01/10/28 | 1,380 | 1,411 | 3.900% due 05/25/26 | 755 | 775 | ||
Barrick Gold Corp. | 4.375% due 11/23/26 | 225 | 230 | ||||
4.100% due 05/01/23 | 281 | 306 | 4.041% due 03/13/28 | 563 | 576 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 435
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
5.250% due 03/14/44 | 282 | 305 | 2.125% due 05/11/20 | 340 | 342 | ||
ING Bank NV | 6.375% due 12/15/38 | 253 | 331 | ||||
5.800% due 09/25/23 (Þ) | 815 | 912 | Shire Acquisitions Investments Co. | ||||
ING Groep NV | 1.900% due 09/23/19 | 1,055 | 1,049 | ||||
3.950% due 03/29/27 | 610 | 624 | Shire Acquisitions Investments Ireland | ||||
Kaupthing Bank HF | DAC | ||||||
7.625% due 02/28/20 (Å)(Ø) | 1,210 | — | 2.400% due 09/23/21 | 1,070 | 1,057 | ||
5.750% due 10/04/20 (Å)(Ø) | 100 | — | 3.200% due 09/23/26 | 580 | 562 | ||
Kuwait Government International Bond | Siemens Financieringsmaatschappij NV | ||||||
2.750% due 03/20/22 (Þ) | 289 | 292 | 2.700% due 03/16/22 (Þ) | 1,144 | 1,155 | ||
3.400% due 03/16/27 (Þ) | 1,010 | 1,030 | |||||
Lukoil International Finance BV | |||||||
6.125% due 11/09/20 (Þ) | 690 | 759 | Southern Copper Corp. | ||||
6.750% due 04/16/40 | 278 | 316 | |||||
LYB International Finance II BV | |||||||
3.500% due 03/02/27 | 305 | 301 | Symphony CLO XVII, Ltd. | ||||
LyondellBasell Industries NV | Series 2016-17A Class A1 | ||||||
5.000% due 04/15/19 | 212 | 223 | 2.380% due 04/15/28 (Ê)(Þ) | 1,500 | 1,506 | ||
Mexico Government International Bond | Telefonica Emisiones SAU | ||||||
4.150% due 03/28/27 | 730 | 751 | 4.103% due 03/08/27 | 320 | 328 | ||
4.350% due 01/15/47 | 242 | 225 | 5.213% due 03/08/47 | 150 | 155 | ||
Tengizchevroil Finance Co. International, | |||||||
Mitsubishi UFJ Financial Group, Inc. | Ltd. | ||||||
2.998% due 02/22/22 | 1,360 | 1,376 | 4.000% due 08/15/26 (Þ) | 245 | 237 | ||
Mondelez International Holdings | Teva Pharmaceutical Finance | ||||||
Netherlands BV | Netherlands III BV | ||||||
1.625% due 10/28/19 (Þ) | 1,301 | 1,282 | 2.200% due 07/21/21 | 620 | 603 | ||
2.000% due 10/28/21 (Þ) | 320 | 310 | 2.800% due 07/21/23 | 575 | 554 | ||
Nationwide Building Society | 3.150% due 10/01/26 | 1,375 | 1,280 | ||||
4.000% due 09/14/26 (Þ) | 1,185 | 1,172 | Toronto-Dominion Bank (The) | ||||
NXP BV / NXP Funding LLC | 1.950% due 04/02/20 (Þ) | 317 | 316 | ||||
4.625% due 06/15/22 (Þ) | 480 | 515 | 2.125% due 04/07/21 | 605 | 602 | ||
Oman Government International Bond | 3.625% due 09/15/31 | 180 | 178 | ||||
3.875% due 03/08/22 (Þ) | 396 | 401 | TransCanada PipeLines, Ltd. | ||||
6.500% due 03/08/47 (Þ) | 69 | 74 | 7.250% due 08/15/38 | 150 | 206 | ||
Ontario Teachers' Cadillac Fairview | |||||||
Properties Trust | UBS Group Funding Jersey, Ltd. | ||||||
3.125% due 03/20/22 (Þ) | 1,535 | 1,556 | 2.950% due 09/24/20 (Þ) | 480 | 485 | ||
Perrigo Finance PLC | UBS Group Funding Switzerland AG | ||||||
3.500% due 12/15/21 | 605 | 621 | 3.491% due 05/23/23 (Þ) | 410 | 416 | ||
Petroleos Mexicanos | UniCredit SpA | ||||||
5.500% due 01/21/21 | 621 | 658 | 3.750% due 04/12/22 (Þ) | 330 | 330 | ||
5.375% due 03/13/22 (Þ) | 970 | 1,020 | Vale Overseas, Ltd. | ||||
5.625% due 01/23/46 | 1,241 | 1,105 | 5.875% due 06/10/21 | 50 | 54 | ||
6.875% due 11/21/36 | 238 | 258 | |||||
Province of Manitoba | |||||||
2.125% due 05/04/22 | 220 | 220 | 6.875% due 11/10/39 | 168 | 181 | ||
Province of Quebec Canada | Validus Holdings, Ltd. | ||||||
2.500% due 04/20/26 | 565 | 557 | 8.875% due 01/26/40 | 590 | 832 | ||
PT Pertamina (Persero) | Vodafone Group PLC | ||||||
4.300% due 05/20/23 (Þ) | 560 | 576 | 5.450% due 06/10/19 | 400 | 428 | ||
7.875% due 02/15/30 | 415 | 557 | |||||
Royal Bank of Canada | 6.250% due 11/30/32 | 345 | 408 | ||||
Series GMTN | |||||||
2.125% due 03/02/20 | 1,466 | 1,470 | Voya CLO, Ltd. | ||||
Series 2017-2A Class A1R | |||||||
Royal Bank of Scotland Group PLC | 2.408% due 04/17/30 (Å) | 1,420 | 1,420 | ||||
3.875% due 09/12/23 | 960 | 962 | |||||
Westpac Banking Corp. | |||||||
Schlumberger Investment SA | 2.000% due 08/19/21 | 291 | 285 | ||||
3.650% due 12/01/23 | 510 | 535 | |||||
Seagate HDD Cayman | 63,638 | ||||||
4.875% due 03/01/24 (Þ) | 755 | 751 | Mortgage-Backed Securities - 26.1% | ||||
Shell International Finance BV | 225 Liberty Street Trust | ||||||
Series 2016-225L Class A |
See accompanying notes which are an integral part of the financial statements.
436 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
3.597% due 02/10/36 (Þ) | 235 | 243 | 3.983% due 10/10/46 | 353 | 377 | ||
7 WTC Depositor LLC Trust | Series 2013-CR12 Class A4 | ||||||
Series 2012-7WTC Class A | 4.046% due 10/10/46 | 965 | 1,030 | ||||
4.082% due 03/13/31 (Þ) | 60 | 61 | Series 2013-LC6 Class A4 | ||||
Alternative Loan Trust | 2.941% due 01/10/46 | 177 | 179 | ||||
Series 2003-20CB Class 2A1 | Series 2015-3BP Class A | ||||||
5.750% due 10/25/33 | 52 | 54 | 3.178% due 02/10/35 (Þ) | 5 | 5 | ||
Banc of America Commercial Mortgage | Series 2015-PC1 Class A5 | ||||||
Trust | 3.902% due 07/10/50 | 11 | 12 | ||||
Series 2007-3 Class AJ | Series 2016-787S Class A | ||||||
5.730% due 06/10/49 | 1,187 | 1,194 | 3.545% due 02/10/36 (Þ) | 235 | 242 | ||
Banc of America Merrill Lynch | Credit Suisse Commercial Mortgage | ||||||
Commercial Mortgage Securities Trust | Trust | ||||||
Series 2012-PARK Class A | Series 2007-C5 Class A4 | ||||||
2.959% due 12/10/30 (Þ) | 340 | 346 | 5.695% due 09/15/40 | 491 | 492 | ||
Series 2014-520M Class A | Credit Suisse First Boston Mortgage | ||||||
4.325% due 08/15/46 (Þ) | 230 | 245 | Securities Corp. | ||||
Banc of America Mortgage Securities, | Series 2003-27 Class 4A4 | ||||||
Inc. | 5.750% due 11/25/33 | 38 | 40 | ||||
Series 2006-B Class 1A1 | CSAIL Commercial Mortgage Trust | ||||||
3.247% due 10/20/46 (Ê) | 53 | 33 | Series 2015-C2 Class XA | ||||
Banc of America Mortgage Trust | Interest Only | ||||||
Series 2004-D Class 2A2 | 4.979% due 06/15/57 | 9,780 | 481 | ||||
3.258% due 05/25/34 (Ê) | 254 | 255 | Series 2016-C7 Class A5 | ||||
BCAP LLC Trust | 3.502% due 11/15/49 | 167 | 170 | ||||
Series 2011-R11 Class 15A1 | CSMC Mortgage-Backed Trust | ||||||
3.037% due 10/26/33 (Å)(Ê) | 823 | 829 | Series 2014-USA Class A2 | ||||
Series 2011-R11 Class 20A5 | 3.953% due 09/15/37 (Þ) | 121 | 125 | ||||
3.069% due 03/26/35 (Ê)(Þ) | 6 | 6 | |||||
Bear Stearns Adjustable Rate Mortgage | CW Capital Cobalt, Ltd. | ||||||
Trust | Series 2007-C3 Class A4 | ||||||
Series 2005-2 Class A1 | 5.959% due 05/15/46 | 85 | 85 | ||||
3.260% due 03/25/35 (Ê) | 448 | 450 | DBJPM Mortgage Trust | ||||
Series 2005-5 Class A1 | Series 2016-C1 Class A4 | ||||||
2.380% due 08/25/35 (Ê) | 1,081 | 1,093 | 3.276% due 05/10/49 | 284 | 287 | ||
Deutsche Mortgage Securities, Inc. Re- | |||||||
Bear Stearns Alterative-A Trust | REMIC Trust | ||||||
Series 2005-4 Class 24A1 | Series 2007-WM1 Class A1 | ||||||
3.535% due 05/25/35 | 614 | 626 | 4.078% due 06/27/37 (Ê)(Þ) | 819 | 824 | ||
Citigroup Commercial Mortgage Trust | Fannie Mae | ||||||
Series 2013-GC17 Class A4 | 5.000% due 2018 | 11 | 12 | ||||
4.131% due 11/10/46 | 139 | 149 | 5.500% due 2018 | 4 | 5 | ||
Series 2014-GC19 Class A4 | 6.500% due 2018 | 5 | 4 | ||||
4.023% due 03/10/47 | 825 | 880 | 5.000% due 2019 | 19 | 19 | ||
Series 2014-GC25 Class AAB | 6.500% due 2019 | 6 | 6 | ||||
3.371% due 10/10/47 | 1,015 | 1,058 | 3.540% due 2020 | 410 | 429 | ||
Citigroup Mortgage Loan Trust, Inc. | 5.000% due 2020 | 30 | 31 | ||||
Series 2005-2 Class 1A2A | 5.500% due 2020 | 193 | 197 | ||||
3.145% due 05/25/35 | 734 | 746 | 6.500% due 2020 | 4 | 4 | ||
Series 2010-8 Class 3A1 | 3.881% due 2021 | 1,246 | 1,324 | ||||
3.322% due 04/25/35 (Ê)(Þ) | 147 | 147 | 4.000% due 2021 | 19 | 20 | ||
Series 2015-2 Class 5A1 | 5.500% due 2021 | 11 | 11 | ||||
0.444% due 03/25/47 (Ê)(Þ) | 547 | 516 | 5.500% due 2022 | 34 | 35 | ||
Commercial Mortgage Trust | 4.500% due 2023 | 148 | 158 | ||||
Series 2013-CR8 Class A5 | 5.000% due 2023 | 39 | 42 | ||||
3.612% due 06/10/46 | 33 | 34 | 4.500% due 2024 | 84 | 89 | ||
Series 2013-CR9 Class A4 | 5.000% due 2024 | 14 | 14 | ||||
4.375% due 07/10/45 | 163 | 177 | 8.500% due 2024 | 2 | 2 | ||
Series 2013-CR11 Class A3 | 9.000% due 2024 | 1 | 1 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 437
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
3.500% due 2025 | 84 | 88 | 4.000% due 2041 | 655 | 697 | ||||
4.000% due 2025 | 173 | 182 | 4.500% due 2041 | 263 | 284 | ||||
4.500% due 2025 | 13 | 14 | 5.000% due 2041 | 798 | 879 | ||||
7.000% due 2025 | 3 | 3 | 5.500% due 2041 | 23 | 26 | ||||
8.500% due 2025 | 8 | 8 | 3.000% due 2042 | 1,352 | 1,358 | ||||
3.000% due 2026 | 138 | 143 | 3.500% due 2042 | 1,096 | 1,133 | ||||
3.500% due 2026 | 422 | 441 | 4.000% due 2042 | 375 | 398 | ||||
7.000% due 2026 | 8 | 9 | 3.000% due 2043 | 3,086 | 3,101 | ||||
9.000% due 2026 | 1 | 1 | 3.500% due 2043 | 4,353 | 4,508 | ||||
2.500% due 2027 | 27 | 27 | 4.000% due 2043 | 814 | 862 | ||||
3.000% due 2027 | 677 | 699 | 5.000% due 2043 | 32 | 35 | ||||
3.500% due 2027 | 64 | 66 | 4.000% due 2044 | 503 | 533 | ||||
4.000% due 2027 | 266 | 280 | 4.500% due 2044 | 28 | 30 | ||||
5.500% due 2027 | 102 | 114 | 3.000% due 2045 | 736 | 739 | ||||
7.000% due 2027 | 1 | 1 | 3.500% due 2045 | 3,788 | 3,907 | ||||
2.500% due 2028 | 1,672 | 1,698 | 4.000% due 2045 | 1,752 | 1,853 | ||||
3.000% due 2028 | 246 | 254 | 3.000% due 2046 | 1,707 | 1,706 | ||||
3.000% due 2029 | 531 | 546 | 3.500% due 2046 | 5,076 | 5,240 | ||||
5.000% due 2029 | 127 | 139 | 4.000% due 2046 | 6,056 | 6,413 | ||||
2.500% due 2030 | 310 | 314 | 4.500% due 2046 | 909 | 995 | ||||
3.000% due 2030 | 256 | 263 | 3.000% due 2047 | 1,586 | 1,588 | ||||
3.500% due 2030 | 310 | 324 | 3.500% due 2047 | 1,053 | 1,086 | ||||
4.500% due 2030 | 44 | 48 | 4.000% due 2047 | 1,126 | 1,186 | ||||
2.500% due 2031 | 270 | 273 | 15 Year TBA(Ï) | ||||||
2.600% due 2031 | 330 | 310 | 2.500% | 1,560 | 1,569 | ||||
3.000% due 2031 | 201 | 206 | 3.000% | 1,500 | 1,543 | ||||
2.500% due 2032 | 74 | 74 | 3.500% | 865 | 904 | ||||
4.000% due 2032 | 51 | 54 | 30 Year TBA(Ï) | ||||||
3.000% due 2033 | 494 | 509 | 3.000% | 5,195 | 5,185 | ||||
4.500% due 2033 | 38 | 41 | 3.500% | 4,740 | 4,865 | ||||
5.000% due 2033 | 298 | 328 | 4.000% | 5,605 | 5,894 | ||||
5.500% due 2033 | 296 | 333 | 4.500% | 2,950 | 3,173 | ||||
3.500% due 2034 | 452 | 473 | Fannie Mae Grantor Trust | ||||||
4.500% due 2034 | 16 | 17 | Series 2002-T5 Class A1 | ||||||
5.000% due 2034 | 88 | 97 | 0.410% due 05/25/32 (Ê) | 176 | 173 | ||||
5.500% due 2034 | 542 | 608 | Fannie Mae REMIC Trust | ||||||
6.000% due 2034 | 83 | 96 | Series 2004-W12 Class 1A1 | ||||||
4.500% due 2035 | 723 | 786 | 6.000% due 07/25/44 | 323 | 372 | ||||
5.000% due 2035 | 123 | 135 | Series 2004-W12 Class 1A3 | ||||||
5.500% due 2035 | 24 | 27 | 7.000% due 07/25/44 | 810 | 955 | ||||
6.000% due 2035 | 273 | 312 | Fannie Mae REMICS | ||||||
5.500% due 2036 | 616 | 690 | Series 1999-56 Class Z | ||||||
6.500% due 2036 | 5 | 6 | 7.000% due 12/18/29 | 58 | 66 | ||||
3.500% due 2037 | 499 | 519 | |||||||
5.000% due 2037 | 92 | 101 | Series 2005-35 Class DZ | ||||||
5.000% due 04/25/35 | 90 | 99 | |||||||
5.500% due 2037 | 1,190 | 1,334 | |||||||
6.000% due 2037 | 87 | 99 | Series 2005-117 Class LC | ||||||
5.500% due 11/25/35 | 335 | 359 | |||||||
6.500% due 2037 | 36 | 41 | |||||||
5.000% due 2038 | 19 | 22 | Series 2009-96 Class DB | ||||||
5.500% due 2038 | 1,185 | 1,327 | 4.000% due 11/25/29 | 559 | 593 | ||||
4.500% due 2039 | 457 | 492 | Series 2010-114 Class BA | ||||||
5.000% due 2039 | 351 | 385 | 4.000% due 07/25/39 | 32 | 32 | ||||
6.000% due 2039 | 80 | 91 | Series 2016-8 Class FA | ||||||
4.000% due 2040 | 282 | 299 | 1.221% due 03/25/46 (Ê) | 2,414 | 2,416 | ||||
4.500% due 2040 | 633 | 684 | Series 2016-40 Class FA | ||||||
5.000% due 2040 | 337 | 373 | 1.641% due 07/25/46 | 1,996 | 2,021 | ||||
5.500% due 2040 | 1,043 | 1,171 | Series 2017-6 Class PA | ||||||
3.500% due 2041 | 1,567 | 1,623 | 3.500% due 06/25/46 | 2,501 | 2,595 |
See accompanying notes which are an integral part of the financial statements.
438 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Series 2017-20 Class PA | 4.500% due 2041 | 583 | 629 | ||||||
3.000% due 08/25/44 | 508 | 518 | 5.000% due 2041 | 92 | 100 | ||||
Federal Home Loan Mortgage Corp. | 5.500% due 2041 | 393 | 443 | ||||||
Multifamily Structured Pass Through | 3.000% due 2042 | 274 | 276 | ||||||
Certificates | 3.500% due 2042 | 767 | 792 | ||||||
Series 2016-K056 Class A2 | 4.000% due 2042 | 497 | 526 | ||||||
2.525% due 05/25/26 | 1,620 | 1,588 | 3.000% due 2043 | 1,914 | 1,922 | ||||
Federal Home Loan Mortgage Corp. | 3.500% due 2043 | 3,249 | 3,364 | ||||||
Multifamily Structured Pass-Through | 4.000% due 2043 | 85 | 90 | ||||||
Certificates | 4.500% due 2043 | 372 | 404 | ||||||
Series 2012-K706 Class X1 | 3.500% due 2044 | 210 | 218 | ||||||
Interest Only STRIP | 4.000% due 2044 | 1,158 | 1,228 | ||||||
1.689% due 10/25/18 | 13 | — | 4.500% due 2044 | 6 | 6 | ||||
Federal Housing Authority Trust | 3.000% due 2045 | 64 | 64 | ||||||
7.430% due 06/27/21 | 17 | 17 | 3.500% due 2045 | 1,481 | 1,528 | ||||
Freddie Mac | 4.000% due 2045 | 2,618 | 2,773 | ||||||
4.500% due 2018 | 16 | 17 | 4.500% due 2045 | 25 | 27 | ||||
4.500% due 2019 | 9 | 9 | 3.000% due 2046 | 1,645 | 1,645 | ||||
5.000% due 2019 | 18 | 19 | 3.500% due 2046 | 2,543 | 2,622 | ||||
6.000% due 2022 | 2 | 3 | 4.000% due 2046 | 3,436 | 3,637 | ||||
4.000% due 2024 | 67 | 71 | 3.000% due 2047 | 1,181 | 1,180 | ||||
5.500% due 2024 | 38 | 40 | 4.000% due 2047 | 1,296 | 1,366 | ||||
9.000% due 2024 | 3 | 3 | |||||||
15 Year TBA(Ï) | |||||||||
6.500% due 2025 | 2 | 2 | 2.500% | 285 | 287 | ||||
8.000% due 2025 | 2 | 3 | 3.000% | 30 | 31 | ||||
9.000% due 2025 | 2 | 2 | |||||||
3.000% due 2026 | 92 | 95 | 30 Year TBA(Ï) | ||||||
3.000% | 2,580 | 2,574 | |||||||
5.000% due 2027 | 1 | 1 | 3.500% | 3,275 | 3,362 | ||||
5.000% due 2028 | 88 | 96 | 4.000% | 1,595 | 1,677 | ||||
6.000% due 2028 | 113 | 128 | 4.500% | 30 | 32 | ||||
6.500% due 2028 | 7 | 8 | Freddie Mac Multifamily Structured | ||||||
6.500% due 2029 | 5 | 6 | Pass-Through Certificates | ||||||
3.500% due 2030 | 264 | 277 | Series 2013-K024 Class A2 | ||||||
2.500% due 2031 | 97 | 97 | 2.573% due 09/25/22 | 1,850 | 1,877 | ||||
2.500% due 2032 | 269 | 271 | Series 2013-K029 Class A2 | ||||||
5.500% due 2032 | 113 | 128 | 3.320% due 02/25/23 | 1,760 | 1,850 | ||||
6.000% due 2032 | 15 | 17 | Series 2015-K045 Class A2 | ||||||
7.500% due 2032 | 11 | 12 | 3.023% due 01/25/25 | 1,240 | 1,273 | ||||
5.500% due 2033 | 46 | 51 | Series 2015-K046 Class A2 | ||||||
5.000% due 2034 | 308 | 340 | 3.205% due 03/25/25 | 480 | 498 | ||||
5.500% due 2034 | 45 | 51 | Series 2015-K047 Class A2 | ||||||
5.500% due 2035 | 74 | 83 | 3.329% due 05/25/25 | 930 | 974 | ||||
5.500% due 2036 | 83 | 92 | |||||||
6.000% due 2036 | 27 | 30 | Series 2015-K048 Class A2 | ||||||
3.284% due 06/25/25 | 1,570 | 1,638 | |||||||
5.000% due 2037 | 4 | 5 | |||||||
5.500% due 2037 | 8 | 8 | Series 2015-K049 Class A2 | ||||||
3.010% due 08/25/25 | 1,800 | 1,842 | |||||||
6.000% due 2037 | 53 | 61 | |||||||
5.000% due 2038 | 2 | 3 | Series 2015-K050 Class A2 | ||||||
5.500% due 2038 | 49 | 54 | 3.334% due 08/25/25 | 1,550 | 1,623 | ||||
6.000% due 2038 | 60 | 68 | Series 2015-K051 Class A2 | ||||||
4.500% due 2039 | 159 | 172 | 3.308% due 09/25/25 | 1,040 | 1,087 | ||||
5.500% due 2039 | 13 | 15 | Series 2016-K053 Class A2 | ||||||
4.000% due 2040 | 1,416 | 1,508 | 2.995% due 12/25/25 | 1,745 | 1,781 | ||||
4.500% due 2040 | 824 | 896 | Series 2016-K057 Class A2 | ||||||
5.000% due 2040 | 15 | 17 | 2.570% due 07/25/26 | 1,030 | 1,013 | ||||
5.500% due 2040 | 8 | 9 | Series 2017-K725 Class A2 | ||||||
6.000% due 2040 | 74 | 84 | 3.002% due 01/25/24 | 415 | 428 | ||||
4.000% due 2041 | 202 | 214 | Freddie Mac Reference REMIC |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 439
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Series 2006-R006 Class ZA | 4.000% due 2042 | 810 | 860 | ||||
6.000% due 04/15/36 | 850 | 970 | 4.500% due 2042 | 332 | 358 | ||
Series 2006-R007 Class ZA | 3.000% due 2043 | 655 | 666 | ||||
6.000% due 05/15/36 | 508 | 574 | 3.500% due 2043 | 1,237 | 1,291 | ||
Freddie Mac REMICS | 4.000% due 2043 | 250 | 265 | ||||
Series 2002-2533 Class Z | 3.500% due 2044 | 419 | 436 | ||||
5.500% due 12/15/32 | 1,080 | 1,219 | 4.000% due 2044 | 262 | 277 | ||
Series 2006-3123 Class HT | 3.000% due 2045 | 630 | 638 | ||||
5.000% due 03/15/26 | 347 | 373 | 3.500% due 2045 | 1,368 | 1,424 | ||
Series 2010-3629 Class CZ | 4.000% due 2045 | 265 | 280 | ||||
5.000% due 01/15/40 | 84 | 93 | 3.000% due 2046 | 1,325 | 1,345 | ||
Series 2010-3632 Class PK | 3.500% due 2046 | 623 | 648 | ||||
5.000% due 02/15/40 | 314 | 343 | 3.000% due 2047 | 448 | 454 | ||
Series 2010-3653 Class B | 3.500% due 2047 | 248 | 258 | ||||
4.500% due 04/15/30 | 759 | 825 | 4.500% due 2047 | 25 | 27 | ||
Series 2011-3954 Class HU | 30 Year TBA(Ï) | ||||||
4.000% due 05/15/29 | 54 | 55 | 3.000% | 3,530 | 3,577 | ||
Series 2012-3989 Class BW | 3.500% | 4,100 | 4,259 | ||||
3.500% due 01/15/27 | 3,180 | 3,376 | 4.000% | 3,325 | 3,514 | ||
Series 2012-4019 Class JD | 4.500% | 690 | 736 | ||||
3.000% due 05/15/41 | 361 | 370 | GS Mortgage Securities Corp. II | ||||
Series 2013-4281 Class LG | Series 2013-GC16 Class A4 | ||||||
4.000% due 01/15/43 | 296 | 309 | 4.271% due 11/10/46 | 7 | 8 | ||
Series 2016-4628 Class PF | Series 2015-GC30 Class A4 | ||||||
1.494% due 11/15/46 | 2,250 | 2,265 | 3.382% due 05/10/50 | 27 | 28 | ||
Series 2017-4646 Class DA | GS Mortgage Securities Trust | ||||||
3.500% due 01/15/42 | 418 | 433 | Series 2012-SHOP Class A | ||||
Series 2017-4664 Class GA | 2.933% due 06/05/31 (Þ) | 553 | 562 | ||||
3.500% due 09/15/43 | 464 | 483 | Series 2013-GC12 Class A4 | ||||
Series 4673 Class HA | 3.135% due 06/10/46 | 63 | 64 | ||||
3.500% due 11/15/43 | 415 | 431 | Series 2014-GC18 Class A4 | ||||
Freddie Mac Strips | 4.074% due 01/10/47 | 625 | 667 | ||||
Series 2012-271 Class 30 | HarborView Mortgage Loan Trust | ||||||
3.000% due 08/15/42 | 1,310 | 1,301 | Series 2004-4 Class 3A | ||||
Freddie Mac Structured Agency Credit | 1.281% due 06/19/34 (Ê) | 47 | 45 | ||||
Risk Debt Notes | Hilton USA Trust | ||||||
Series 2015-DN1 Class M3 | Series 2016-HHV Class D | ||||||
4.331% due 01/25/25 (Ê) | 1,000 | 1,088 | 4.194% due 11/05/38 (Þ) | 2,271 | 2,185 | ||
Ginnie Mae | JPMorgan Chase Commercial Mortgage | ||||||
Series 2004-93 Class PC | Securities Trust | ||||||
5.000% due 04/16/34 | 471 | 483 | Series 2004-LN2 Class B | ||||
5.466% due 07/15/41 | 500 | 495 | |||||
Ginnie Mae I | JPMorgan Chase Commercial Mortgage | ||||||
9.000% due 2025 | 5 | 6 | Trust | ||||
7.000% due 2031 | 21 | 24 | |||||
7.000% due 2033 | 1 | 1 | Series 2017-JP5 Class A5 | ||||
3.723% due 03/15/50 | 109 | 114 | |||||
3.000% due 2042 | 70 | 71 | |||||
3.000% due 2043 | 178 | 181 | JPMorgan Mortgage Trust | ||||
3.500% due 2043 | 142 | 148 | Series 2003-A2 Class 3A1 | ||||
2.503% due 11/25/33 (Ê) | 131 | 124 | |||||
Ginnie Mae II | |||||||
7.500% due 2032 | 2 | 2 | Series 2005-A1 Class 6T1 | ||||
5.500% due 2039 | 93 | 102 | 3.299% due 02/25/35 (Ê) | 229 | 225 | ||
4.000% due 2040 | 35 | 38 | Series 2005-A3 Class 4A1 | ||||
4.000% due 2041 | 221 | 236 | 2.658% due 06/25/35 (Ê) | 105 | 106 | ||
4.500% due 2041 | 805 | 867 | Series 2015-3 Class A5 | ||||
5.500% due 2041 | 11 | 12 | 3.500% due 05/25/45 (Þ) | 601 | 615 | ||
3.000% due 2042 | 163 | 166 | LB Commercial Mortgage Trust | ||||
3.500% due 2042 | 599 | 626 | Series 2007-C3 Class AM |
See accompanying notes which are an integral part of the financial statements.
440 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
6.114% due 07/15/44 | 790 | 792 | Series 2004-12 Class 7A3 | ||||
LB-UBS Commercial Mortgage Trust | 2.694% due 09/25/34 (Ê) | 73 | 73 | ||||
Series 2007-C6 Class A4 | Structured Asset Securities Corp. | ||||||
5.858% due 07/15/40 | 449 | 450 | Mortgage Pass-Through Certificates | ||||
Series 2007-C6 Class AM | Series 2003-34A Class 5A4 | ||||||
6.114% due 07/15/40 | 1,650 | 1,665 | 2.956% due 11/25/33 (Ê) | 725 | 733 | ||
Morgan Stanley Bank of America Merrill | Wachovia Bank Commercial Mortgage | ||||||
Lynch Trust | Trust | ||||||
Series 2013-C10 Class A4 | Series 2007-C33 Class A4 | ||||||
4.218% due 07/15/46 | 92 | 99 | 6.158% due 02/15/51 | 17 | 17 | ||
Washington Mutual Mortgage Pass- | |||||||
Series 2013-C12 Class A4 | Through Certificates Trust | ||||||
4.259% due 10/15/46 | 153 | 165 | Series 2003-AR10 Class A7 | ||||
Series 2014-C14 Class A4 | 2.669% due 10/25/33 (Ê) | 253 | 257 | ||||
3.787% due 02/15/47 | 165 | 174 | Series 2004-AR1 Class A | ||||
Series 2014-C14 Class A5 | 2.771% due 03/25/34 (Ê) | 1,168 | 1,182 | ||||
4.064% due 02/15/47 | 52 | 56 | Series 2005-AR2 Class 2A21 | ||||
Series 2015-C20 Class A4 | 0.855% due 01/25/45 (Ê) | 424 | 409 | ||||
3.249% due 02/15/48 | 181 | 183 | Series 2005-AR13 Class A1A1 | ||||
Series 2015-C24 Class A4 | 1.272% due 10/25/45 (Ê) | 1,383 | 1,358 | ||||
3.732% due 05/15/48 | 945 | 986 | Series 2006-AR1 Class 2A1A | ||||
Series 2016-C31 Class A1 | 1.577% due 01/25/46 (Ê) | 745 | 727 | ||||
1.511% due 11/15/21 | 481 | 475 | Wells Fargo Commercial Mortgage Trust | ||||
Morgan Stanley Capital I Trust | Series 2015-NXS3 Class A4 | ||||||
Series 2007-IQ16 Class AM | 3.617% due 09/15/57 | 35 | 36 | ||||
6.277% due 12/12/49 | 1,385 | 1,406 | Series 2015-SG1 Class A4 | ||||
Series 2014-CPT Class A | 3.789% due 12/15/47 | 181 | 189 | ||||
3.350% due 07/13/29 (Þ) | 456 | 472 | Series 2016-LC25 Class A4 | ||||
MSCG Trust | 3.640% due 12/15/59 | 516 | 535 | ||||
Series 2015-ALDR Class A2 | Series 2017-RB1 Class A5 | ||||||
3.577% due 06/07/35 (Þ) | 310 | 309 | 3.635% due 03/15/50 | 116 | 120 | ||
OBP Depositor LLC Trust | Wells Fargo Mortgage Backed Securities | ||||||
Series 2010-OBP Class A | Trust | ||||||
4.646% due 07/15/45 (Þ) | 230 | 246 | Series 2003-J Class 1A9 | ||||
One Market Plaza Trust | 2.612% due 10/25/33 (Ê) | 726 | 727 | ||||
Series 2017-1MKT Class C | Series 2005-AR10 Class 2A4 | ||||||
4.016% due 02/10/32 (Þ) | 1,133 | 1,186 | 2.652% due 06/25/35 (Ê) | 32 | 33 | ||
Series 2017-1MKT Class D | Series 2006-AR8 Class 1A3 | ||||||
4.146% due 02/10/32 (Þ) | 797 | 808 | 3.024% due 04/25/36 (Ê) | 426 | 421 | ||
RBS Commercial Funding, Inc. Trust | WFRBS Commercial Mortgage Trust | ||||||
Series 2013-GSP Class A | Series 2013-C14 Class A4 | ||||||
3.834% due 01/13/32 (Þ) | 235 | 249 | 3.073% due 06/15/46 | 162 | 165 | ||
RBSSP Resecuritization Trust | Series 2013-C14 Class A5 | ||||||
Series 2010-3 Class 9A1 | 3.337% due 06/15/46 | 16 | 17 | ||||
5.500% due 02/26/35 (Þ) | 108 | 108 | Series 2014-C21 Class XA | ||||
Sequoia Mortgage Trust | Interest Only | ||||||
Series 2013-2 Class A | 1.316% due 08/15/47 | 7,766 | 448 | ||||
1.874% due 02/25/43 | 310 | 297 | WinWater Mortgage Loan Trust | ||||
Series 2013-4 Class A1 | Series 2014-1 Class A1 | ||||||
2.325% due 04/25/43 | 284 | 274 | 3.924% due 06/20/44 (Þ) | 1,037 | 1,071 | ||
Series 2013-6 Class A1 | 226,813 | ||||||
2.500% due 05/25/43 | 470 | 454 | Municipal Bonds - 0.6% | ||||
Series 2013-6 Class A2 | Alabama Economic Settlement Authority | ||||||
3.000% due 05/25/43 | 464 | 458 | Revenue Bonds | ||||
Structured Adjustable Rate Mortgage | 3.163% due 09/15/25 | 262 | 265 | ||||
Loan Trust | Municipal Electric Authority of Georgia | ||||||
Series 2004-6 Class 1A | Revenue Bonds | ||||||
2.358% due 06/25/34 (Ê) | 226 | 222 | 6.637% due 04/01/57 | 990 | 1,166 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 441
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
7.055% due 04/01/57 | 1,410 | 1,523 | 0.750% due 07/31/18 | 4,550 | 4,526 | ||
New Jersey Transportation Trust Fund | 1.250% due 10/31/18 | 200 | 200 | ||||
Authority Revenue Bonds | 1.750% due 10/31/18 | 1,435 | 1,447 | ||||
5.754% due 12/15/28 | 460 | 484 | 1.375% due 12/31/18 | 1,400 | 1,403 | ||
San Diego Tobacco Settlement Revenue | 1.125% due 01/15/19 | 1,425 | 1,422 | ||||
Funding Corp. Revenue Bonds | |||||||
7.125% due 06/01/32 | 210 | 247 | 2.750% due 02/15/19 | 250 | 257 | ||
State of California General Obligation | 1.375% due 02/28/19 | 2,895 | 2,902 | ||||
Unlimited | 1.500% due 02/28/19 | 500 | 502 | ||||
2.367% due 04/01/22 | 95 | 95 | 1.250% due 03/31/19 | 3,362 | 3,361 | ||
7.300% due 10/01/39 | 200 | 284 | 1.500% due 03/31/19 | 6,935 | 6,967 | ||
State of Illinois General Obligation | 0.875% due 04/15/19 | 2,455 | 2,436 | ||||
Unlimited | 1.250% due 04/30/19 | 636 | 636 | ||||
5.877% due 03/01/19 | 335 | 351 | 0.875% due 06/15/19 | 1,350 | 1,338 | ||
5.100% due 06/01/33 | 320 | 287 | 1.625% due 06/30/19 | 5,955 | 5,996 | ||
4,702 | 3.625% due 08/15/19 | 365 | 384 | ||||
United States Government Agencies - 0.7% | 1.375% due 02/15/20 | 244 | 244 | ||||
Fannie Mae | 1.375% due 02/29/20 | 715 | 714 | ||||
0.875% due 08/02/19 | 250 | 247 | 1.125% due 03/31/20 | 1,750 | 1,734 | ||
1.600% due 12/24/20 | 1,205 | 1,195 | 1.375% due 03/31/20 | 4,475 | 4,466 | ||
2.000% due 01/05/22 | 50 | 50 | 1.500% due 04/15/20 | 121 | 121 | ||
2.625% due 09/06/24 | 449 | 461 | 1.125% due 04/30/20 | 1,020 | 1,010 | ||
2.125% due 04/24/26 | 20 | 19 | 8.750% due 05/15/20 | 2,500 | 3,039 | ||
7.250% due 05/15/30 | 230 | 340 | 1.625% due 07/31/20 | 3,176 | 3,186 | ||
6.625% due 11/15/30 | 100 | 143 | 2.625% due 08/15/20 | 7,182 | 7,432 | ||
Federal Home Loan Banks | 1.375% due 08/31/20 | 5,767 | 5,735 | ||||
0.875% due 10/01/18 | 175 | 174 | 2.125% due 08/31/20 | 7,849 | 7,994 | ||
1.250% due 01/16/19 | 225 | 225 | 1.375% due 09/30/20 | 639 | 635 | ||
1.375% due 03/18/19 | 100 | 100 | 1.375% due 10/31/20 | 8,870 | 8,807 | ||
0.875% due 08/05/19 | 200 | 198 | 1.750% due 10/31/20 | 6,638 | 6,675 | ||
1.375% due 11/15/19 | 25 | 25 | 1.625% due 11/30/20 | 4,882 | 4,885 | ||
1.875% due 11/29/21 | 20 | 20 | 1.375% due 01/31/21 | 4,282 | 4,240 | ||
Freddie Mac | 3.625% due 02/15/21 | 1,000 | 1,073 | ||||
1.500% due 01/17/20 | 100 | 100 | 1.250% due 03/31/21 | 250 | 246 | ||
1.375% due 04/20/20 | 75 | 75 | 2.250% due 03/31/21 | 500 | 511 | ||
2.375% due 01/13/22 | 837 | 854 | 1.375% due 04/30/21 | 1,250 | 1,235 | ||
6.250% due 07/15/32 | 424 | 598 | 8.125% due 05/15/21 | 300 | 375 | ||
Tennessee Valley Authority | 1.125% due 06/30/21 | 2,490 | 2,431 | ||||
6.150% due 01/15/38 | 345 | 481 | 2.125% due 06/30/21 | 750 | 762 | ||
3.500% due 12/15/42 | 343 | 349 | 2.125% due 08/15/21 | 4,950 | 5,031 | ||
4.250% due 09/15/65 | 387 | 421 | 1.125% due 08/31/21 | 776 | 756 | ||
Series A | 2.000% due 08/31/21 | 1,500 | 1,516 | ||||
2.875% due 02/01/27 | 100 | 102 | 1.125% due 09/30/21 | 2,212 | 2,153 | ||
1.250% due 10/31/21 | 4,865 | 4,756 | |||||
United States Government Treasuries - 31.0% | 6,177 | 8.000% due 11/15/21 | 1,250 | 1,589 | |||
United States Treasury Inflation Indexed | 2.000% due 12/31/21 | 947 | 956 | ||||
Bonds | 1.500% due 01/31/22 | 430 | 424 | ||||
2.125% due 01/15/19 | 3,517 | 3,674 | 1.875% due 03/31/22 | 6,867 | 6,885 | ||
0.125% due 04/15/19 | 4,314 | 4,353 | 1.125% due 04/30/22 | 5,001 | 4,877 | ||
0.125% due 07/15/22 | 466 | 470 | 1.750% due 04/30/22 | 400 | 398 | ||
0.375% due 07/15/23 | 5,092 | 5,186 | 1.875% due 04/30/22 | 2,827 | 2,835 | ||
0.375% due 07/15/25 | 1,284 | 1,293 | 1.750% due 05/15/22 | 2,350 | 2,341 | ||
3.875% due 04/15/29 | 3,667 | 5,092 | 1.875% due 05/31/22 | 150 | 150 | ||
2.125% due 02/15/40 | 2,282 | 2,892 | 2.125% due 12/31/22 | 3,460 | 3,493 | ||
United States Treasury Notes | 1.750% due 01/31/23 | 2,862 | 2,829 | ||||
0.875% due 05/31/18 | 1,931 | 1,925 | 2.000% due 02/15/23 | 3,600 | 3,608 | ||
0.625% due 06/30/18 | 6,500 | 6,459 | 1.500% due 02/28/23 | 4,280 | 4,169 | ||
2.375% due 06/30/18 | 250 | 253 | 1.500% due 03/31/23 | 2,425 | 2,360 | ||
1.750% due 05/15/23 | 1,000 | 986 |
See accompanying notes which are an integral part of the financial statements.
442 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
1.375% due 06/30/23 | 4,672 | 4,498 | 0.631% due 05/03/17 (ç)(~) | 905 | 905 | |||
6.250% due 08/15/23 | 810 | 1,014 | Berkshire Hathaway Finance Corp. | |||||
1.375% due 08/31/23 | 3,974 | 3,817 | ||||||
2.125% due 11/30/23 | 1,000 | 1,004 | 1.450% due 03/07/18 | 485 | 486 | |||
2.750% due 02/15/24 | 830 | 865 | Canadian Natural Resources, Ltd. | |||||
2.125% due 02/29/24 | 750 | 752 | 5.900% due 02/01/18 | 240 | 247 | |||
2.125% due 03/31/24 | 1,590 | 1,594 | Capital One Bank NA | |||||
2.500% due 05/15/24 | 200 | 205 | Series BKNT | |||||
2.375% due 08/15/24 | 5,100 | 5,184 | 1.650% due 02/05/18 | 730 | 730 | |||
2.250% due 11/15/24 | 1,000 | 1,007 | ||||||
2.000% due 02/15/25 | 1,925 | 1,900 | Commonwealth Edison Co. | |||||
2.250% due 11/15/25 | 640 | 640 | 5.800% due 03/15/18 | 315 | 326 | |||
6.000% due 02/15/26 | 365 | 475 | Exelon Corp. | |||||
1.625% due 05/15/26 | 1,331 | 1,261 | 1.550% due 06/09/17 | 476 | 476 | |||
1.500% due 08/15/26 | 1,728 | 1,616 | Fannie Mae | |||||
2.000% due 11/15/26 | 524 | 511 | ||||||
1.625% due 02/15/27 | 550 | 522 | 5.000% due 12/01/17 | 4 | 4 | |||
2.250% due 02/15/27 | 2,963 | 2,954 | 6.500% due 12/01/17 | 1 | 1 | |||
6.125% due 11/15/27 | 35 | 47 | 5.500% due 01/01/18 | 26 | 26 | |||
5.250% due 11/15/28 | 50 | 64 | ||||||
5.250% due 02/15/29 | 2,200 | 2,847 | 6.500% due 03/01/18 | 1 | 1 | |||
6.125% due 08/15/29 | 2,141 | 2,994 | Freddie Mac | |||||
6.250% due 05/15/30 | 2,000 | 2,861 | 6.000% due 07/01/17 | 2 | 1 | |||
5.375% due 02/15/31 | 700 | 944 | 6.000% due 08/01/17 | 1 | — | |||
4.500% due 02/15/36 | 200 | 257 | ||||||
4.750% due 02/15/37 | 3,294 | 4,351 | 6.000% due 09/01/17 | 1 | 1 | |||
5.000% due 05/15/37 | 620 | 844 | 5.000% due 01/01/18 | 3 | 3 | |||
4.500% due 05/15/38 | 75 | 96 | Freddie Mac Multifamily Structured | |||||
4.625% due 02/15/40 | 50 | 65 | Pass-Through Certificates | |||||
4.375% due 05/15/40 | 500 | 629 | Series 2011-K702 Class X1 | |||||
3.875% due 08/15/40 | 1,270 | 1,487 | 1.617% due 02/25/18 | 8 | — | |||
3.750% due 08/15/41 | 400 | 460 | General Electric Co. | |||||
3.125% due 02/15/42 | 1,670 | 1,731 | 5.250% due 12/06/17 | 310 | 317 | |||
2.750% due 08/15/42 | 2,875 | 2,778 | Lehman Brothers Holdings, Inc. | |||||
2.750% due 11/15/42 | 1,200 | 1,158 | ||||||
3.125% due 02/15/43 | 985 | 1,018 | 6.500% due 07/19/17 (Ø) | 390 | — | |||
2.875% due 05/15/43 | 400 | 395 | 6.750% due 12/28/17 (Ø) | 990 | — | |||
3.750% due 11/15/43 | 2,950 | 3,398 | NextEra Energy Capital Holdings, Inc. | |||||
2.500% due 02/15/45 | 7,905 | 7,202 | Series F | |||||
2.875% due 08/15/45 | 2,074 | 2,039 | 2.056% due 09/01/17 | 846 | 848 | |||
2.500% due 02/15/46 | 2,133 | 1,939 | ||||||
2.875% due 11/15/46 | 9,124 | 8,967 | Sky PLC | |||||
2.250% due 02/15/47 (§) | 5,544 | 4,759 | 6.100% due 02/15/18 (Þ) | 945 | 976 | |||
3.000% due 02/15/47 | 12 | 12 | Thomson Reuters Corp. | |||||
268,197 | 1.650% due 09/29/17 | 720 | 720 | |||||
Total Long-Term Investments | TransCanada PipeLines, Ltd. | |||||||
(cost $830,176) | 830,960 | 1.625% due 11/09/17 | 341 | 341 | ||||
Tyco Electronics Group SA | ||||||||
Short-Term Investments - 9.3% | 6.550% due 10/01/17 | 705 | 719 | |||||
U.S. Cash Management Fund | 58,803,134 | (8) | 58,817 | |||||
Anthem, Inc. | UBS AG | |||||||
1.875% due 01/15/18 | 810 | 811 | 1.375% due 06/01/17 | 802 | 802 | |||
Assurant, Inc. | United States Treasury Notes | |||||||
2.500% due 03/15/18 | 780 | 784 | 1.000% due 12/15/17 | 3,500 | 3,499 | |||
Bank of Tokyo-Mitsubishi UFJ, Ltd. | ||||||||
(The) | 0.875% due 01/15/18 | 7,940 | 7,931 | |||||
Voya Financial, Inc. |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 443
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Principal | Fair | |||
Amount ($) | Value | |||
or Shares | $ | |||
2.900% due 02/15/18 | 465 | 469 | ||
Xcel Energy, Inc. | ||||
1.200% due 06/01/17 | 611 | 611 | ||
Total Short-Term Investments | ||||
(cost $82,190) | 80,852 | |||
Total Investments 105.0% | ||||
(identified cost $912,366) | 911,812 | |||
Other Assets and Liabilities, | ||||
Net - (5.0%) | (43,653 | ) | ||
Net Assets - 100.0% | 868,159 |
See accompanying notes which are an integral part of the financial statements.
444 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.3% | ||||||||||||
BCAP LLC Trust | 11/26/13 | 822,534 | 104.06 | 856 | 829 | |||||||
Kaupthing Bank HF | 02/17/16 | 100,000 | — | — | — | |||||||
Kaupthing Bank HF | 02/17/16 | 1,210,000 | — | — | — | |||||||
Voya CLO, Ltd. | 03/31/17 | 1,420,000 | 100.00 | 1,420 | 1,420 | |||||||
2,249 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Australia 10 Year Government Bond Futures | 453 | AUD | 58,762 | 06/17 | 1,110 | ||
United States 2 Year Treasury Note Futures | 28 | USD | 6,065 | 06/17 | 3 | ||
United States 5 Year Treasury Note Futures | 389 | USD | 46,060 | 06/17 | 208 | ||
United States 10 Year Treasury Note Futures | 628 | USD | 78,952 | 06/17 | 656 | ||
United States Long Bond Futures | 14 | USD | 2,142 | 06/17 | (13 | ) | |
Short Positions | |||||||
Euro-Bund Futures | 228 | EUR | 36,886 | 06/17 | (176 | ) | |
Long Gilt Futures | 236 | GBP | 30,272 | 06/17 | (597 | ) | |
United States 5 Year Treasury Note Futures | 12 | USD | 1,421 | 06/17 | (11 | ) | |
United States 10 Year Treasury Note Futures | 22 | USD | 2,766 | 06/17 | (42 | ) | |
United States Long Bond Futures | 28 | USD | 4,283 | 06/17 | (80 | ) | |
United States Ultra Treasury Bond Futures | 56 | USD | 8,932 | 06/17 | (142 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 916 |
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of America | USD | 26 | BRL | 82 | 05/23/17 | (1 | ) | |
Bank of America | USD | 100 | BRL | 320 | 05/23/17 | 1 | ||
Bank of America | USD | 1,117 | BRL | 3,476 | 05/23/17 | (27 | ) | |
Bank of America | USD | 48 | CLP | 32,295 | 05/23/17 | — | ||
Bank of America | USD | 65 | CLP | 41,909 | 05/23/17 | (2 | ) | |
Bank of America | USD | 1,100 | COP | 3,211,387 | 05/23/17 | (12 | ) | |
Bank of America | USD | 12 | CZK | 296 | 05/23/17 | — | ||
Bank of America | USD | 71 | CZK | 1,785 | 05/23/17 | 2 | ||
Bank of America | USD | 2,256 | CZK | 56,853 | 05/23/17 | 53 | ||
Bank of America | USD | 7 | HUF | 2,068 | 05/23/17 | — | ||
Bank of America | USD | 57 | HUF | 16,635 | 05/23/17 | 1 | ||
Bank of America | USD | 2,247 | HUF | 648,910 | 05/23/17 | 11 | ||
Bank of America | USD | 23 | IDR | 301,289 | 05/23/17 | — | ||
Bank of America | USD | 122 | IDR | 1,638,935 | 05/23/17 | — | ||
Bank of America | USD | 17 | KRW | 19,216 | 05/23/17 | — | ||
Bank of America | USD | 71 | KRW | 81,514 | 05/23/17 | — | ||
Bank of America | USD | 2,231 | PLN | 9,079 | 05/23/17 | 109 | ||
Bank of America | USD | 94 | RUB | 5,628 | 05/23/17 | 5 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 445
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 106 | RUB | 5,991 | 05/23/17 | (1 | ) |
Bank of America | USD | 1,108 | RUB | 64,811 | 05/23/17 | 26 | |
Bank of America | USD | 1,091 | TRY | 4,109 | 05/23/17 | 59 | |
Bank of America | USD | 2,182 | TRY | 8,218 | 05/23/17 | 117 | |
Bank of America | USD | 24 | TWD | 744 | 05/23/17 | — | |
Bank of America | USD | 67 | TWD | 2,069 | 05/23/17 | 1 | |
Bank of America | BRL | 41 | USD | 13 | 05/23/17 | — | |
Bank of America | BRL | 160 | USD | 50 | 05/23/17 | — | |
Bank of America | BRL | 6,952 | USD | 2,233 | 05/23/17 | 54 | |
Bank of America | CLP | 1,435,437 | USD | 2,236 | 05/23/17 | 88 | |
Bank of America | COP | 63,041 | USD | 21 | 05/23/17 | — | |
Bank of America | COP | 139,012 | USD | 49 | 05/23/17 | 2 | |
Bank of America | CZK | 592 | USD | 24 | 05/23/17 | — | |
Bank of America | CZK | 3,570 | USD | 141 | 05/23/17 | (4 | ) |
Bank of America | CZK | 28,427 | USD | 1,128 | 05/23/17 | (27 | ) |
Bank of America | HUF | 1,034 | USD | 4 | 05/23/17 | — | |
Bank of America | HUF | 33,271 | USD | 114 | 05/23/17 | (2 | ) |
Bank of America | HUF | 324,455 | USD | 1,123 | 05/23/17 | (6 | ) |
Bank of America | IDR | 29,739,013 | USD | 2,207 | 05/23/17 | (20 | ) |
Bank of America | KRW | 1,285,224 | USD | 1,125 | 05/23/17 | (5 | ) |
Bank of America | PLN | 187 | USD | 47 | 05/23/17 | (1 | ) |
Bank of America | PLN | 517 | USD | 127 | 05/23/17 | (6 | ) |
Bank of America | RUB | 2,814 | USD | 47 | 05/23/17 | (2 | ) |
Bank of America | RUB | 2,996 | USD | 53 | 05/23/17 | 1 | |
Bank of America | RUB | 129,623 | USD | 2,216 | 05/23/17 | (52 | ) |
Bank of America | TRY | 87 | USD | 23 | 05/23/17 | (1 | ) |
Bank of America | TRY | 174 | USD | 47 | 05/23/17 | (2 | ) |
Bank of America | TRY | 179 | USD | 47 | 05/23/17 | (3 | ) |
Bank of America | TRY | 359 | USD | 94 | 05/23/17 | (6 | ) |
Bank of America | TWD | 34,605 | USD | 1,130 | 05/23/17 | (16 | ) |
Bank of Montreal | USD | 1,732 | AUD | 2,304 | 05/23/17 | (8 | ) |
Bank of Montreal | USD | 6,928 | AUD | 9,216 | 05/23/17 | (30 | ) |
Bank of Montreal | USD | 3,534 | EUR | 3,289 | 05/23/17 | 53 | |
Bank of Montreal | DKK | 12,234 | USD | 1,767 | 05/23/17 | (27 | ) |
Bank of Montreal | EUR | 6,578 | USD | 7,067 | 05/23/17 | (104 | ) |
Bank of Montreal | HKD | 8,657 | USD | 1,117 | 05/23/17 | 3 | |
Bank of New York | USD | 3,589 | GBP | 2,792 | 05/23/17 | 29 | |
Bank of New York | USD | 3,509 | JPY | 381,760 | 05/23/17 | (82 | ) |
Bank of New York | JPY | 763,521 | USD | 7,018 | 05/23/17 | 162 | |
Bank of New York | SEK | 15,783 | USD | 1,762 | 05/23/17 | (22 | ) |
Citigroup | USD | 1,130 | ZAR | 14,879 | 05/23/17 | (21 | ) |
Royal Bank of Canada | USD | 6,982 | ILS | 25,580 | 05/23/17 | 86 | |
Royal Bank of Canada | USD | 1,749 | NZD | 2,494 | 05/23/17 | (37 | ) |
Royal Bank of Canada | CHF | 1,756 | USD | 1,764 | 05/23/17 | (3 | ) |
Royal Bank of Canada | CHF | 3,512 | USD | 3,528 | 05/23/17 | (6 | ) |
Royal Bank of Canada | ILS | 12,790 | USD | 3,491 | 05/23/17 | (43 | ) |
State Street | USD | 2 | HKD | 17 | 05/23/17 | — | |
State Street | USD | 63 | HKD | 489 | 05/23/17 | — | |
State Street | USD | 2,234 | SGD | 3,176 | 05/23/17 | 40 | |
State Street | USD | 21 | ZAR | 282 | 05/23/17 | — | |
State Street | SEK | 63,132 | USD | 7,035 | 05/23/17 | (99 | ) |
State Street | SGD | 43 | USD | 31 | 05/23/17 | — | |
State Street | SGD | 203 | USD | 144 | 05/23/17 | (2 | ) |
See accompanying notes which are an integral part of the financial statements.
446 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Unrealized | ||||||||||||||||||
Appreciation | ||||||||||||||||||
Amount | Amount | (Depreciation) | ||||||||||||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||||||||||||
State Street | ZAR | 1,083 | USD | 82 | 05/23/17 | 1 | ||||||||||||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 224 | |||||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Long-Term Investments | ||||||||||||||||||
Asset-Backed Securities | $ | — | $ | 51,233 | $ | 1,049 | $ | — | $ | 52,282 | 6.0 | |||||||
Corporate Bonds and Notes | — | 208,888 | 263 | — | 209,151 | 24.1 | ||||||||||||
International Debt | — | 63,638 | — | — | 63,638 | 7.3 | ||||||||||||
Mortgage-Backed Securities | — | 226,796 | 17 | — | 226,813 | 26.1 | ||||||||||||
Municipal Bonds | — | 4,702 | — | — | 4,702 | 0.6 | ||||||||||||
United States Government Agencies | — | 6,177 | — | — | 6,177 | 0.7 | ||||||||||||
United States Government Treasuries | — | 268,197 | — | — | 268,197 | 30.9 | ||||||||||||
Short-Term Investments | — | 22,035 | — | 58,817 | 80,852 | 9.3 | ||||||||||||
Total Investments | — | 851,666 | 1,329 | 58,817 | 911,812 | 105.0 | ||||||||||||
Other Assets and Liabilities, Net | (5.0 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 1,977 | — | — | — | 1,982 | 0.2 | ||||||||||||
Foreign Currency Exchange Contracts | — | 904 | — | — | 904 | 0.1 | ||||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (1,061 | ) | — | — | — | (1,066 | ) | (0.1 | ) | |||||||||
Foreign Currency Exchange Contracts | — | (680 | ) | — | — | (680 | ) | (0.1 | ) | |||||||||
Total Other Financial Instruments* | $ | 916 | $ | 224 | $ | — | $ | — | $ | 1,140 |
* Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 447
Russell Investment Company
Investment Grade Bond Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||
Currency | Interest Rate | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | |||||||
Unrealized appreciation on foreign currency exchange contracts | $ | 904 | $ | — | |||
Variation margin on futures contracts* | — | 1,977 | |||||
Total | $ | 904 | $ | 1,977 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||
Variation margin on futures contracts* | $ | — | $ | 1,061 | |||
Unrealized depreciation on foreign currency exchange contracts | 680 | — | |||||
Total | $ | 680 | $ | 1,061 | |||
Foreign | |||||||
Currency | Interest Rate | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | |||||||
Futures contracts | $ | — | $ | (3,358 | ) | ||
Foreign currency-related transactions** | (2,546 | ) | — | ||||
Total | $ | (2,546 | ) | $ | (3,358 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||||
Futures contracts | $ | — | $ | 191 | |||
Foreign currency-related transactions*** | 484 | — | |||||
Total | $ | 484 | $ | 191 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
448 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | $ | 904 | $ | — $ | 904 | |||
Futures Contracts | Variation margin on futures contracts | 271 | — | 271 | |||||
Total Financial and Derivative Assets | 1,175 | — | 1,175 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (271 | ) | — | (271 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 904 | $ | — $ | 904 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of America | $ | 530 | $ | 195 | $ | — | $ 335 | ||
Bank of Montreal | 56 | 56 | — | — | |||||
Bank of New York | 192 | 103 | — | 89 | |||||
Royal Bank of Canada | 85 | 85 | — | — | |||||
State Street | 41 | 41 | — | — | |||||
Total | $ | 904 | $ | 480 | $ | — | $ 424 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 449
Russell Investment Company
Investment Grade Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 32 | $ | — $ | 32 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 680 | — | 680 | |||||
Total Financial and Derivative Liabilities | 712 | — | 712 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (32 | ) | — | (32 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 680 | $ | — $ | 680 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 195 | $ | 195 | $ | — | $ — | ||
Bank of Montreal | 170 | 56 | — | 114 | |||||
Bank of New York | 103 | 103 | — | — | |||||
Citigroup | 21 | — | — | 21 | |||||
Royal Bank of Canada | 89 | 85 | — | 4 | |||||
State Street | 102 | 41 | — | 61 | |||||
Total | $ | 680 | $ | 480 | $ | — | $ 200 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
450 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 912,366 |
Investments, at fair value(>) | 911,812 | |
Cash (restricted)(a) | 4,795 | |
Unrealized appreciation on foreign currency exchange contracts | 904 | |
Receivables: | ||
Dividends and interest | 6,291 | |
Dividends from affiliated funds | 41 | |
Investments sold | 55,546 | |
Fund shares sold | 1,071 | |
Investments matured(†) | 231 | |
Variation margin on futures contracts | 271 | |
Prepaid expenses | 9 | |
Total assets | 980,971 | |
Liabilities | ||
Payables: | ||
Due to custodian | 123 | |
Investments purchased | 110,039 | |
Fund shares redeemed | 1,291 | |
Accrued fees to affiliates | 329 | |
Other accrued expenses | 318 | |
Variation margin on futures contracts | 32 | |
Unrealized depreciation on foreign currency exchange contracts | 680 | |
Total liabilities | 112,812 | |
Net Assets | $ | 868,159 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 451
Russell Investment Company
Investment Grade Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 3,658 | |
Accumulated net realized gain (loss) | (17,803 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | (554 | ) | |
Futures contracts | 916 | ||
Investments matured | (882 | ) | |
Foreign currency-related transactions | 224 | ||
Shares of beneficial interest | 410 | ||
Additional paid-in capital | 882,190 | ||
Net Assets | $ | 868,159 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 21.20 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 22.02 | |
Class A — Net assets | $ | 10,049,846 | |
Class A — Shares outstanding ($.01 par value) | 474,155 | ||
Net asset value per share: Class C(#) | $ | 21.01 | |
Class C — Net assets | $ | 13,494,628 | |
Class C — Shares outstanding ($.01 par value) | 642,407 | ||
Net asset value per share: Class E(#) | $ | 21.19 | |
Class E — Net assets | $ | 5,289,727 | |
Class E — Shares outstanding ($.01 par value) | 249,616 | ||
Net asset value per share: Class I(#) | $ | 21.19 | |
Class I — Net assets | $ | 207,748,976 | |
Class I — Shares outstanding ($.01 par value) | 9,805,470 | ||
Net asset value per share: Class R6(#) | $ | 21.24 | |
Class R6 — Net assets | $ | 808,526 | |
Class R6 — Shares outstanding ($.01 par value) | 38,059 | ||
Net asset value per share: Class S(#) | $ | 21.17 | |
Class S — Net assets | $ | 462,587,491 | |
Class S — Shares outstanding ($.01 par value) | 21,854,223 | ||
Net asset value per share: Class T(#) | $ | 21.17 | |
Class T — Net assets | $ | 437,247 | |
Class T — Shares outstanding ($.01 par value) | 20,652 | ||
Net asset value per share: Class Y(#) | $ | 21.21 | |
Class Y — Net assets | $ | 167,742,256 | |
Class Y — Shares outstanding ($.01 par value) | 7,909,701 | ||
Amounts in thousands | |||
(<) Investments matured - cost | $ | 1,113 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 58,817 | |
(a) Cash Collateral for Futures | $ | 4,795 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
452 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends from affiliated funds | $ | 289 | |
Interest | 10,700 | ||
Total investment income | 10,989 | ||
Expenses | |||
Advisory fees | 1,143 | ||
Administrative fees | 221 | ||
Custodian fees | 166 | ||
Distribution fees - Class A | 13 | ||
Distribution fees - Class C | 56 | ||
Transfer agent fees - Class A | 10 | ||
Transfer agent fees - Class C | 15 | ||
Transfer agent fees - Class E | 9 | ||
Transfer agent fees - Class I | 169 | ||
Transfer agent fees - Class R6 | —** | ||
Transfer agent fees - Class S | 484 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 4 | ||
Professional fees | 72 | ||
Registration fees | 67 | ||
Shareholder servicing fees - Class C | 19 | ||
Shareholder servicing fees - Class E | 11 | ||
Trustees’ fees | 18 | ||
Printing fees | 43 | ||
Miscellaneous | 13 | ||
Expenses before reductions | 2,533 | ||
Expense reductions | (46 | ) | |
Net expenses | 2,487 | ||
Net investment income (loss) | 8,502 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | (8,139 | ) | |
Futures contracts | (3,358 | ) | |
Interest rate swap contracts | —** | ||
Foreign currency-related transactions | (2,546 | ) | |
Net realized gain (loss) | (14,043 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments | (7,883 | ) | |
Futures contracts | 191 | ||
Investment matured | 382 | ||
Foreign currency-related transactions | 485 | ||
Net change in unrealized appreciation (depreciation) | (6,825 | ) | |
Net realized and unrealized gain (loss) | (20,868 | ) | |
Net Increase (Decrease) in Net Assets from Operations | $ | (12,366 | ) |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 453
Russell Investment Company
Investment Grade Bond Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 8,502 | $ | 20,909 | ||
Net realized gain (loss) | (14,043 | ) | 28,410 | |||
Net change in unrealized appreciation (depreciation) | (6,825 | ) | 5,215 | |||
Net increase (decrease) in net assets from operations | (12,366 | ) | 54,534 | |||
Distributions | ||||||
From net investment income | ||||||
Class A | (98 | ) | (186 | ) | ||
Class C | (95 | ) | (191 | ) | ||
Class E | (118 | ) | (383 | ) | ||
Class I | (2,782 | ) | (5,879 | ) | ||
Class R6 | (6 | ) | (3 | ) | ||
Class S | (5,369 | ) | (13,280 | ) | ||
Class T | (—)** | — | ||||
Class Y | (1,898 | ) | (3,954 | ) | ||
From net realized gain | ||||||
Class A | (296 | ) | (181 | ) | ||
Class C | (459 | ) | (355 | ) | ||
Class E | (406 | ) | (486 | ) | ||
Class I | (7,203 | ) | (5,624 | ) | ||
Class R6 | (13 | ) | — | |||
Class S | (14,226 | ) | (14,125 | ) | ||
Class Y | (4,556 | ) | (4,105 | ) | ||
Net decrease in net assets from distributions | (37,525 | ) | (48,752 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (65,363 | ) | (283,091 | ) | ||
Total Net Increase (Decrease) in Net Assets | (115,254 | ) | 277,309 | |||
Net Assets | ||||||
Beginning of period | 983,413 | 1,260,722 | ||||
End of period | $ | 868,159 | $ | 983,413 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 3,658 | $ | 5,522 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
454 Investment Grade Bond Fund
Russell Investment Company
Investment Grade Bond Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 18 | $ | 391 | 156 | $ | 3,440 | ||||||
Proceeds from reinvestment of distributions | 18 | 380 | 16 | 349 | ||||||||
Payments for shares redeemed | (51 | ) | (1,091 | ) | (98 | ) | (2,173 | ) | ||||
Net increase (decrease) | (15 | ) | (320 | ) | 74 | 1,616 | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 17 | 359 | 145 | 3,157 | ||||||||
Proceeds from reinvestment of distributions | 27 | 550 | 25 | 537 | ||||||||
Payments for shares redeemed | (179 | ) | (3,750 | ) | (203 | ) | (4,466 | ) | ||||
Net increase (decrease) | (135 | ) | (2,841 | ) | (33 | ) | (772 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 26 | 548 | 105 | 2,327 | ||||||||
Proceeds from reinvestment of distributions | 25 | 516 | 38 | 825 | ||||||||
Payments for shares redeemed | (464 | ) | (9,752 | ) | (581 | ) | (12,950 | ) | ||||
Net increase (decrease) | (413 | ) | (8,688 | ) | (438 | ) | (9,798 | ) | ||||
Class I | ||||||||||||
Proceeds from shares sold | 919 | 19,539 | 2,080 | 46,077 | ||||||||
Proceeds from reinvestment of distributions | 469 | 9,789 | 516 | 11,237 | ||||||||
Payments for shares redeemed | (3,163 | ) | (66,567 | ) | (3,617 | ) | (80,127 | ) | ||||
Net increase (decrease) | (1,775 | ) | (37,239 | ) | (1,021 | ) | (22,813 | ) | ||||
Class R6 | ||||||||||||
Proceeds from shares sold | 22 | 467 | 20 | 452 | ||||||||
Proceeds from reinvestment of distributions | 1 | 18 | —** | 3 | ||||||||
Payments for shares redeemed | (5 | ) | (107 | ) | (—)** | (3 | ) | |||||
Net increase (decrease) | 18 | 378 | 20 | 452 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 4,034 | 85,128 | 6,766 | 149,844 | ||||||||
Proceeds from reinvestment of distributions | 934 | 19,468 | 1,252 | 27,220 | ||||||||
Payments for shares redeemed | (6,316 | ) | (132,906 | ) | (17,183 | ) | (382,127 | ) | ||||
Net increase (decrease) | (1,348 | ) | (28,310 | ) | (9,165 | ) | (205,063 | ) | ||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 21 | 435 | — | — | ||||||||
Payments for shares redeemed | (—)** | (—)*** | — | — | ||||||||
Net increase (decrease) | 21 | 435 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 1,373 | 28,811 | 953 | 21,033 | ||||||||
Proceeds from reinvestment of distributions | 307 | 6,423 | 370 | 8,059 | ||||||||
Payments for shares redeemed | (1,138 | ) | (24,012 | ) | (3,463 | ) | (75,805 | ) | ||||
Net increase (decrease) | 542 | 11,222 | (2,140 | ) | (46,713 | ) | ||||||
Total increase (decrease) | (3,105 | ) | $ | (65,363 | ) | (12,703 | ) | $ | (283,091 | ) |
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
** Less than 500 shares.
*** Less than $500.
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 455
Russell Investment Company
Investment Grade Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 22.32 | .17 | (.46 | ) | (.29 | ) | (.21 | ) | (.62 | ) | |||||||
October 31, 2016 | 22.21 | .35 | .61 | .96 | (.40 | ) | (.45 | ) | |||||||||
October 31, 2015 | 22.48 | .28 | .10 | .38 | (.23 | ) | (.42 | ) | |||||||||
October 31, 2014 | 21.91 | .28 | .53 | .81 | (.24 | ) | — | ||||||||||
October 31, 2013 | 23.15 | .25 | (.58 | ) | (.33 | ) | (.21 | ) | (.70 | ) | |||||||
October 31, 2012 | 22.31 | .36 | 1.10 | 1.46 | (.38 | ) | (.24 | ) | |||||||||
Class C | |||||||||||||||||
April 30, 2017* | 22.13 | .09 | (.46 | ) | (.37 | ) | (.13 | ) | (.62 | ) | |||||||
October 31, 2016 | 22.03 | .18 | .61 | .79 | (.24 | ) | (.45 | ) | |||||||||
October 31, 2015 | 22.33 | .11 | .11 | .22 | (.10 | ) | (.42 | ) | |||||||||
October 31, 2014 | 21.77 | .12 | .52 | .64 | (.08 | ) | — | ||||||||||
October 31, 2013 | 23.03 | .09 | (.59 | ) | (.50 | ) | (.06 | ) | (.70 | ) | |||||||
October 31, 2012 | 22.20 | .21 | 1.08 | 1.29 | (.22 | ) | (.24 | ) | |||||||||
Class E | |||||||||||||||||
April 30, 2017* | 22.31 | .16 | (.46 | ) | (.30 | ) | (.20 | ) | (.62 | ) | |||||||
October 31, 2016 | 22.20 | .35 | .61 | .96 | (.40 | ) | (.45 | ) | |||||||||
October 31, 2015 | 22.46 | .27 | .12 | .39 | (.23 | ) | (.42 | ) | |||||||||
October 31, 2014 | 21.89 | .28 | .53 | .81 | (.24 | ) | — | ||||||||||
October 31, 2013 | 23.13 | .25 | (.58 | ) | (.33 | ) | (.21 | ) | (.70 | ) | |||||||
October 31, 2012 | 22.28 | .39 | 1.09 | 1.48 | (.39 | ) | (.24 | ) | |||||||||
Class I | |||||||||||||||||
April 30, 2017* | 22.31 | .20 | (.46 | ) | (.26 | ) | (.24 | ) | (.62 | ) | |||||||
October 31, 2016 | 22.21 | .42 | .60 | 1.02 | (.47 | ) | (.45 | ) | |||||||||
October 31, 2015 | 22.47 | .35 | .12 | .47 | (.31 | ) | (.42 | ) | |||||||||
October 31, 2014 | 21.90 | .36 | .52 | .88 | (.31 | ) | — | ||||||||||
October 31, 2013 | 23.14 | .33 | (.59 | ) | (.26 | ) | (.28 | ) | (.70 | ) | |||||||
October 31, 2012 | 22.29 | .45 | 1.09 | 1.54 | (.45 | ) | (.24 | ) | |||||||||
Class R6 | |||||||||||||||||
April 30, 2017* | 22.37 | .21 | (.47 | ) | (.26 | ) | (.25 | ) | (.62 | ) | |||||||
October 31, 2016(8) | 21.86 | .29 | .47 | .76 | (.25 | ) | — | ||||||||||
Class S | |||||||||||||||||
April 30, 2017* | 22.29 | .19 | (.46 | ) | (.27 | ) | (.23 | ) | (.62 | ) | |||||||
October 31, 2016 | 22.19 | .40 | .60 | 1.00 | (.45 | ) | (.45 | ) | |||||||||
October 31, 2015 | 22.45 | .33 | .12 | .45 | (.29 | ) | (.42 | ) | |||||||||
October 31, 2014 | 21.88 | .34 | .52 | .86 | (.29 | ) | — | ||||||||||
October 31, 2013 | 23.12 | .31 | (.58 | ) | (.27 | ) | (.27 | ) | (.70 | ) | |||||||
October 31, 2012 | 22.27 | .43 | 1.09 | 1.52 | (.43 | ) | (.24 | ) | |||||||||
Class T | |||||||||||||||||
April 30, 2017(10) | 20.87 | .05 | .27 | .32 | (.02 | ) | — | ||||||||||
Class Y | |||||||||||||||||
April 30, 2017* | 22.33 | .21 | (.46 | ) | (.25 | ) | (.25 | ) | (.62 | ) | |||||||
October 31, 2016 | 22.22 | .45 | .61 | 1.06 | (.50 | ) | (.45 | ) | |||||||||
October 31, 2015 | 22.49 | .37 | .11 | .48 | (.33 | ) | (.42 | ) | |||||||||
October 31, 2014 | 21.91 | .38 | .54 | .92 | (.34 | ) | — | ||||||||||
October 31, 2013 | 23.15 | .35 | (.58 | ) | (.23 | ) | (.31 | ) | (.70 | ) | |||||||
October 31, 2012 | 22.30 | .48 | 1.08 | 1.56 | (.47 | ) | (.24 | ) | |||||||||
See accompanying notes which are an integral part of the financial statements.
456 Investment Grade Bond Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b) | |||||||||
(.83 | ) | 21.20 | (1.23 | ) | 10,050 | .83 | .83 | 1.57 | 72 | ||||||||
(.85 | ) | 22.32 | 4.47 | 10,904 | .80 | .80 | 1.58 | 207 | |||||||||
(.65 | ) | 22.21 | 1.73 | 9,210 | .80 | .80 | 1.25 | 187 | |||||||||
(.24 | ) | 22.48 | 3.70 | 8,036 | .81 | .81 | 1.27 | 178 | |||||||||
(.91 | ) | 21.91 | (1.48 | ) | 10,114 | .79 | .79 | 1.15 | 136 | ||||||||
(.62 | ) | 23.15 | 6.68 | 11,983 | .79 | .79 | 1.59 | 159 | |||||||||
(.75 | ) | 21.01 | (1.61 | ) | 13,495 | 1.58 | 1.58 | .82 | 72 | ||||||||
(.69 | ) | 22.13 | 3.68 | 17,204 | 1.55 | 1.55 | .82 | 207 | |||||||||
(.52 | ) | 22.03 | .99 | 17,869 | 1.55 | 1.55 | .49 | 187 | |||||||||
(.08 | ) | 22.33 | 2.94 | 20,978 | 1.56 | 1.56 | .54 | 178 | |||||||||
(.76 | ) | 21.77 | (2.23 | ) | 25,285 | 1.54 | 1.54 | .39 | 136 | ||||||||
(.46 | ) | 23.03 | 5.92 | 36,340 | 1.54 | 1.54 | .92 | 159 | |||||||||
(.82 | ) | 21.19 | (1.27 | ) | 5,290 | .83 | .83 | 1.50 | 72 | ||||||||
(.85 | ) | 22.31 | 4.45 | 14,785 | .80 | .80 | 1.58 | 207 | |||||||||
(.65 | ) | 22.20 | 1.77 | 24,430 | .80 | .80 | 1.23 | 187 | |||||||||
(.24 | ) | 22.46 | 3.71 | 34,378 | .81 | .81 | 1.28 | 178 | |||||||||
(.91 | ) | 21.89 | (1.46 | ) | 41,621 | .79 | .78 | 1.15 | 136 | ||||||||
(.63 | ) | 23.13 | 6.76 | 43,762 | .79 | .74 | 1.74 | 159 | |||||||||
(.86 | ) | 21.19 | (1.08 | ) | 207,749 | .52 | .51 | 1.88 | 72 | ||||||||
(.92 | ) | 22.31 | 4.76 | 258,359 | .47 | .47 | 1.90 | 207 | |||||||||
(.73 | ) | 22.21 | 2.11 | 279,818 | .47 | .47 | 1.57 | 187 | |||||||||
(.31 | ) | 22.47 | 4.05 | 297,900 | .48 | .48 | 1.62 | 178 | |||||||||
(.98 | ) | 21.90 | (1.15 | ) | 339,903 | .46 | .46 | 1.47 | 136 | ||||||||
(.69 | ) | 23.14 | 7.05 | 410,807 | .46 | .46 | 2.01 | 159 | |||||||||
(.87 | ) | 21.24 | (1.09 | ) | 809 | .43 | .41 | 2.00 | 72 | ||||||||
.25 | 22.37 | 3.49 | 450 | .40 | .38 | 1.95 | 207 | ||||||||||
(.85 | ) | 21.17 | (1.11 | ) | 462,587 | .58 | .57 | 1.84 | 72 | ||||||||
(.90 | ) | 22.29 | 4.68 | 517,173 | .55 | .55 | 1.82 | 207 | |||||||||
(.71 | ) | 22.19 | 2.03 | 718,081 | .55 | .55 | 1.49 | 187 | |||||||||
(.29 | ) | 22.45 | 3.97 | 847,289 | .56 | .56 | 1.54 | 178 | |||||||||
(.97 | ) | 21.88 | (1.23 | ) | 817,400 | .54 | .54 | 1.38 | 136 | ||||||||
(.67 | ) | 23.12 | 6.93 | 805,089 | .54 | .54 | 1.92 | 159 | |||||||||
(.02 | ) | 21.17 | 1.52 | 437 | .58 | .44 | 2.03 | 72 | |||||||||
(.87 | ) | 21.21 | (1.01 | ) | 167,742 | .38 | .38 | 2.03 | 72 | ||||||||
(.95 | ) | 22.33 | 4.93 | 164,538 | .35 | .35 | 2.03 | 207 | |||||||||
(.75 | ) | 22.22 | 2.18 | 211,314 | .35 | .35 | 1.67 | 187 | |||||||||
(.34 | ) | 22.49 | 4.21 | 364,876 | .36 | .36 | 1.71 | 178 | |||||||||
(1.01 | ) | 21.91 | (.99 | ) | 608,499 | .34 | .34 | 1.59 | 136 | ||||||||
(.71 | ) | 23.15 | 7.15 | 609,301 | .36 | .36 | 2.11 | 159 |
See accompanying notes which are an integral part of the financial statements.
Investment Grade Bond Fund 457
Russell Investment Company
Investment Grade Bond Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 179,149 |
Administration fees | 34,579 | |
Distribution fees | 10,605 | |
Shareholder servicing fees | 3,929 | |
Transfer agent fees | 93,781 | |
Trustee fees | 7,334 | |
$ | 329,377 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Management Fund | $ | 128,173 | $ | 245,307 | $ | 314,654 | $ | — | $ (9) | $ | 58,817 | $ | 289 | $ | — | ||
$ | 128,173 | $ | 245,307 | $ | 314,654 | $ | — | $ (9) | $ | 58,817 | $ | 289 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 915,666,839 | |||
Unrealized Appreciation | $ | 68,834,150 | |||
Unrealized Depreciation | (72,688,441 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | (3,854,291 | ) |
See accompanying notes which are an integral part of the financial statements.
458 Investment Grade Bond Fund
Russell Investment Company
Short Duration Bond Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,001.40 | $ | 1,020.68 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 4.12 | $ | 4.16 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.83% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 997.80 | $ | 1,016.96 | |
Expenses Paid During Period* | $ | 7.83 | $ | 7.90 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.58% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,001.50 | $ | 1,020.73 | |
of other funds. | Expenses Paid During Period* | $ | 4.07 | $ | 4.11 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.82% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Short Duration Bond Fund 459
Russell Investment Company
Short Duration Bond Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class R6 | Performance | expenses) | Class Y | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 1,003.40 | $ | 1,022.17 | April 30, 2017 | $ | 1,003.00 | $ | 1,022.32 | |||
Expenses Paid During Period* | $ | 2.63 | $ | 2.66 | Expenses Paid During Period* | $ | 2.48 | $ | 2.51 | |||
* Expenses are equal to the Fund's annualized expense ratio of 0.53% | * Expenses are equal to the Fund's annualized expense ratio of 0.50% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the six month period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | year period). May reflect amounts waived and/or reimbursed. Without any | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | waivers and/or reimbursements, expenses would have been higher. | |||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,003.20 | $ | 1,021.92 | ||||||||
Expenses Paid During Period* | $ | 2.88 | $ | 2.91 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.58% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class T | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,003.90 | $ | 1,022.17 | ||||||||
Expenses Paid During Period* | $ | 0.65 | $ | 2.66 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.53% | ||||||||||||
(representing the 45-day period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
0.53% (representing the six-month period annualized), multiplied by the | ||||||||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||||||||
on-half year period). |
460 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Long-Term Investments - 85.0% | Earnest Student Loan Program LLC | ||||||
Asset-Backed Securities - 8.5% | Series 2016-D Class A1 | ||||||
Ally Auto Receivables Trust | 2.423% due 01/25/41 (Ê)(Þ) | 3,094 | 3,145 | ||||
Series 2016-2 Class A2 | Education Loan Asset-Backed Trust I | ||||||
1.170% due 10/15/18 | 455 | 455 | Series 2013-1 Class B1 | ||||
AmeriCredit Automobile Receivables | 2.023% due 11/25/33 (Ê)(Þ) | 2,242 | 2,123 | ||||
Trust | Enterprise Fleet Financing LLC | ||||||
Series 2013-4 Class C | Series 2014-2 Class A2 | ||||||
2.720% due 09/09/19 | 2,807 | 2,816 | 1.050% due 03/20/20 (Þ) | 164 | 163 | ||
Series 2015-1 Class A3 | Series 2017-1 Class A3 | ||||||
1.260% due 11/08/19 | 411 | 411 | 2.600% due 07/20/22 (Þ) | 965 | 965 | ||
Series 2015-3 Class A3 | Equity One Mortgage Pass-Through Trust | ||||||
1.540% due 03/09/20 | 1,200 | 1,201 | Series 2003-4 Class M1 | ||||
Series 2016-4 Class A2A | 5.869% due 10/25/34 | 179 | 171 | ||||
1.340% due 04/08/20 | 536 | 536 | Flagship Credit Auto Trust | ||||
Ascentium Equipment Receivables Trust | Series 2016-4 Class A1 | ||||||
1.870% due 07/10/19 (Þ) | 685 | 685 | 1.470% due 03/16/20 (Þ) | 1,070 | 1,068 | ||
Bank of The West Auto Trust | Ford Credit Auto Owner Trust | ||||||
Series 2014-1 Class A3 | Series 2015-A Class A3 | ||||||
1.090% due 03/15/19 (Þ) | 507 | 507 | 1.280% due 09/15/19 | 716 | 716 | ||
Series 2015-1 Class A3 | Freddie Mac Structured Pass-Through | ||||||
1.310% due 10/15/19 (Þ) | 2,348 | 2,347 | Certificates | ||||
Capital Auto Receivables Asset Trust | Series 2000-30 Class A5 | ||||||
Series 2016-1 Class A2A | 7.199% due 12/25/30 | 1,716 | 2,018 | ||||
1.500% due 11/20/18 | 186 | 187 | GM Financial Automobile Leasing Trust | ||||
Series 2016-3 Class A2A | Series 2015-3 Class A3 | ||||||
1.360% due 04/22/19 | 723 | 723 | 1.690% due 03/20/19 | 4,379 | 4,385 | ||
CarMax Auto Owner Trust | Hertz Fleet Lease Funding, LP | ||||||
Series 2013-3 Class A4 | Series 2014-1 Class C | ||||||
1.490% due 01/15/19 | 2,353 | 2,354 | 2.144% due 04/10/28 (Ê)(Þ) | 1,475 | 1,473 | ||
Series 2016-2 Class A3 | Series 2017-1 Class B | ||||||
1.520% due 02/16/21 | 855 | 853 | 2.880% due 04/10/31 (Þ) | 1,965 | 1,964 | ||
Series 2016-3 Class A2 | Hilton Grand Vacations Trust | ||||||
1.170% due 08/15/19 | 1,635 | 1,633 | Series 2017-AA Class A | ||||
CCG Receivables Trust | 2.660% due 12/27/28 (Þ) | 1,314 | 1,315 | ||||
Series 2014-1 Class A2 | Honda Auto Receivables Owner Trust | ||||||
1.060% due 11/15/21 (Þ) | 167 | 167 | Series 2014-4 Class A3 | ||||
Chase Issuance Trust | 0.990% due 09/17/18 | 946 | 945 | ||||
Series 2016-A7 Class A7 | Series 2016-3 Class A2 | ||||||
1.060% due 09/16/19 | 1,905 | 1,903 | 1.010% due 10/18/18 | 1,981 | 1,979 | ||
CPS Auto Receivables Trust | HSBC Home Equity Loan Trust | ||||||
Series 2014-D Class A | Series 2007-3 Class APT | ||||||
1.490% due 04/15/19 (Þ) | 376 | 376 | 2.178% due 11/20/36 (Ê) | 78 | 78 | ||
Credit-Based Asset Servicing and | Huntington Auto Trust | ||||||
Securitization LLC | Series 2015-1 Class A3 | ||||||
Series 2006-SC1 Class A | 1.240% due 09/16/19 | 1,146 | 1,145 | ||||
1.048% due 05/25/36 (Ê)(Þ) | 25 | 25 | Hyundai Auto Receivables Trust | ||||
Dell Equipment Finance Trust | Series 2016-A Class A2A | ||||||
Series 2017-1 Class A2 | 1.210% due 06/17/19 | 875 | 875 | ||||
1.860% due 06/24/19 (Þ) | 980 | 980 | JCP&L Transition Funding LLC | ||||
Drive Auto Receivables Trust | Series 2002-A Class A4 | ||||||
Series 2016-AA Class B | 6.160% due 06/05/19 | 13 | 13 | ||||
3.170% due 05/15/20 (Þ) | 477 | 479 | John Deere Owner Trust | ||||
Series 2017-AA Class B | Series 2015-B Class A3 | ||||||
2.510% due 01/15/21 (Þ) | 950 | 954 | 1.440% due 10/15/19 | 1,440 | 1,440 | ||
Series 2017-BA Class A2 | MMAF Equipment Finance LLC | ||||||
1.590% due 12/17/18 (Þ) | 1,310 | 1,310 | Series 2014-AA Class A3 |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 461
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
0.870% due 01/08/19 (Þ) | 959 | 958 | Amazon.com, Inc. | ||||
Series 2016-AA Class A2 | 2.600% due 12/05/19 | 745 | 760 | ||||
1.390% due 12/17/18 (Þ) | 832 | 832 | American Airlines, Inc. Pass-Through | ||||
Series 2017-AA Class A1 | Certificates Trust | ||||||
1.170% due 05/16/18 (Þ) | 2,815 | 2,815 | Series 2013-2 Class A | ||||
Nissan Auto Receivables Owner Trust | 4.950% due 01/15/23 | 422 | 451 | ||||
Series 2014-A Class A3 | American Express Credit Corp. | ||||||
0.720% due 08/15/18 | 150 | 150 | 1.702% due 03/18/19 (Ê) | 2,993 | 3,009 | ||
2.125% due 03/18/19 | 240 | 241 | |||||
Series 2015-A Class A3 | 1.875% due 05/03/19 | 1,975 | 1,975 | ||||
1.050% due 10/15/19 | 3,157 | 3,151 | |||||
Prestige Auto Receivables Trust | Series F | ||||||
2.600% due 09/14/20 | 1,650 | 1,672 | |||||
Series 2014-1A Class A3 | |||||||
1.520% due 04/15/20 (Þ) | 1,109 | 1,109 | American Honda Finance Corp. | ||||
1.600% due 07/13/18 | 1,700 | 1,702 | |||||
Series 2016-1A Class A2 | |||||||
1.780% due 08/15/19 (Þ) | 1,797 | 1,799 | 1.332% due 11/19/18 (Ê) | 5,015 | 5,029 | ||
1.200% due 07/12/19 | 1,679 | 1,658 | |||||
Santander Drive Auto Receivables Trust | |||||||
Series GMTN | |||||||
Series 2014-4 Class B | 1.700% due 09/09/21 | 815 | 795 | ||||
1.820% due 05/15/19 | 324 | 324 | |||||
American International Group, Inc. | |||||||
Series 2015-4 Class A3 | 6.400% due 12/15/20 | 595 | 674 | ||||
1.580% due 09/16/19 | 1,121 | 1,121 | |||||
Anheuser-Busch InBev Finance, Inc. | |||||||
Series 2016-3 Class A2 | 1.900% due 02/01/19 | 2,650 | 2,656 | ||||
1.340% due 11/15/19 | 1,007 | 1,006 | 2.150% due 02/01/19 | 1,085 | 1,092 | ||
SLM Private Education Loan Trust | |||||||
Series 2010-A Class 2A | Anheuser-Busch InBev Worldwide, Inc. | ||||||
4.162% due 05/16/44 (Ê)(Þ) | 1,390 | 1,442 | 6.875% due 11/15/19 | 745 | 833 | ||
Apple, Inc. | |||||||
SoFi Professional Loan Program | 2.006% due 02/22/19 (Ê) | 720 | 731 | ||||
Series 2017-A Class A1 | 1.479% due 05/06/19 (Ê) | 4,475 | 4,494 | ||||
1.724% due 03/26/40 (Þ) | 1,118 | 1,118 | 2.100% due 05/06/19 | 1,085 | 1,096 | ||
SoFi Professional Loan Program LLC | AT&T, Inc. | ||||||
Series 2016-B Class A2A | 2.375% due 11/27/18 | 3,555 | 3,579 | ||||
1.680% due 03/25/31 (Þ) | 1,016 | 1,016 | 2.450% due 06/30/20 | 2,690 | 2,694 | ||
SoFi Professional Loan Program LLC | Bank of America Corp. | ||||||
Series 2014-B Class A2 | 5.625% due 07/01/20 | 1,400 | 1,538 | ||||
2.550% due 08/27/29 (Þ) | 2,028 | 2,037 | 3.124% due 01/20/23 | 725 | 733 | ||
Series 2016-C Class A2B | 2.153% due 04/24/23 (Ê) | 2,140 | 2,143 | ||||
2.360% due 12/25/32 (Þ) | 1,150 | 1,141 | Series L | ||||
Tidewater Auto Receivables Trust | 2.650% due 04/01/19 | 1,980 | 2,003 | ||||
Series 2016-AA Class A2 | Bank of New York Mellon Corp. (The) | ||||||
2.300% due 09/15/19 (Þ) | 1,166 | 1,166 | Series G | ||||
Westlake Automobile Receivables Trust | 2.200% due 05/15/19 | 575 | 579 | ||||
Series 2017-1A Class A2 | Barrick NA Finance LLC | ||||||
1.780% due 04/15/20 (Þ) | 1,310 | 1,311 | 4.400% due 05/30/21 | 1,376 | 1,488 | ||
World Financial Network Credit Card | |||||||
Master Trust | BB&T Corp. | ||||||
Series 2016-C Class A | 2.250% due 02/01/19 | 1,760 | 1,773 | ||||
1.720% due 08/15/23 | 460 | 458 | BMW US Capital LLC | ||||
1.500% due 04/11/19 (Þ) | 1,570 | 1,563 | |||||
69,837 | Broadcom Corp. / Broadcom Cayman | ||||||
Corporate Bonds and Notes - 30.2% | Finance, Ltd. | ||||||
Abbott Laboratories | 3.000% due 01/15/22 (Þ) | 1,450 | 1,462 | ||||
2.900% due 11/30/21 | 820 | 828 | Canadian Imperial Bank of Commerce | ||||
AbbVie, Inc. | NY | ||||||
2.500% due 05/14/20 | 480 | 484 | Series YCD | ||||
AIG Global Funding | 1.545% due 07/13/18 (Ê) | 3,100 | 3,099 | ||||
1.900% due 10/06/21 (Þ) | 490 | 474 | Capital One Financial Corp. | ||||
Altria Group, Inc. | 2.450% due 04/24/19 | 1,060 | 1,066 | ||||
9.250% due 08/06/19 | 879 | 1,018 | Capital One NA | ||||
4.750% due 05/05/21 | 794 | 865 | 2.350% due 01/31/20 | 495 | 496 |
See accompanying notes which are an integral part of the financial statements.
462 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Series BKNT | Exxon Mobil Corp. | ||||||
1.850% due 09/13/19 | 1,025 | 1,016 | Series FXD | ||||
Cardinal Health, Inc. | 1.912% due 03/06/20 | 3,500 | 3,519 | ||||
1.950% due 06/15/18 | 525 | 526 | Ford Motor Credit Co. LLC | ||||
Caterpillar Financial Services Corp. | 2.551% due 10/05/18 | 925 | 931 | ||||
1.900% due 03/22/19 | 395 | 395 | 2.012% due 05/03/19 | 1,315 | 1,312 | ||
1.350% due 05/18/19 | 735 | 729 | 1.897% due 08/12/19 | 2,550 | 2,527 | ||
2.100% due 01/10/20 | 305 | 306 | 2.681% due 01/09/20 | 1,185 | 1,195 | ||
Charter Communications Operating LLC | 2.459% due 03/27/20 | 770 | 769 | ||||
/ Charter Communications Operating | General Electric Capital Corp. | ||||||
Capital | Series GMTN | ||||||
4.464% due 07/23/22 | 620 | 660 | 5.625% due 05/01/18 | 158 | 165 | ||
Chevron Corp. | General Electric Co. | ||||||
1.718% due 06/24/18 | 615 | 617 | 5.550% due 05/04/20 | 1,660 | 1,832 | ||
1.790% due 11/16/18 | 955 | 960 | |||||
General Mills, Inc. | |||||||
1.561% due 05/16/19 | 1,070 | 1,069 | 6.590% due 10/15/18 | 2,825 | 3,010 | ||
1.961% due 03/03/20 | 440 | 441 | 5.650% due 02/15/19 | 985 | 1,050 | ||
2.100% due 05/16/21 | 350 | 349 | |||||
1.712% due 11/15/21 (Ê) | 3,545 | 3,561 | General Motors Financial Co., Inc. | ||||
2.400% due 05/09/19 | 2,035 | 2,040 | |||||
Cisco Systems, Inc. | |||||||
2.200% due 02/28/21 | 2,128 | 2,139 | Gilead Sciences, Inc. | ||||
2.550% due 09/01/20 | 825 | 836 | |||||
Citigroup, Inc. | |||||||
2.050% due 12/07/18 | 505 | 506 | Goldman Sachs Group, Inc. (The) | ||||
2.625% due 01/31/19 | 2,545 | 2,575 | |||||
2.050% due 06/07/19 | 3,350 | 3,343 | 2.000% due 04/25/19 | 425 | 425 | ||
2.150% due 06/07/19 (Ê) | 4,355 | 4,384 | 2.750% due 09/15/20 | 1,055 | 1,066 | ||
2.450% due 01/10/20 | 2,035 | 2,046 | |||||
Hewlett Packard Enterprise Co. | |||||||
Coca-Cola European Partners LLC | 2.850% due 10/05/18 | 845 | 855 | ||||
3.250% due 08/19/21 | 905 | 929 | |||||
Home Depot, Inc. (The) | |||||||
Colgate-Palmolive Co. | 2.000% due 04/01/21 | 620 | 618 | ||||
2.950% due 11/01/20 | 660 | 685 | |||||
Huntington National Bank (The) | |||||||
ConocoPhillips | 2.200% due 11/06/18 | 865 | 868 | ||||
6.650% due 07/15/18 | 3,815 | 4,038 | |||||
Hyundai Capital America | |||||||
ConocoPhillips Co. | 2.000% due 07/01/19 (Þ) | 430 | 426 | ||||
1.500% due 05/15/18 | 1,395 | 1,394 | |||||
International Business Machines Corp. | |||||||
Crown Castle Towers LLC | 1.800% due 05/17/19 | 530 | 533 | ||||
6.113% due 01/15/20 (Þ) | 1,410 | 1,528 | 2.250% due 02/19/21 | 820 | 828 | ||
CVS Health Corp. | 1.759% due 11/06/21 (Ê) | 490 | 494 | ||||
2.800% due 07/20/20 | 940 | 958 | |||||
2.750% due 12/01/22 | 660 | 661 | IPALCO Enterprises, Inc. | ||||
5.000% due 05/01/18 | 300 | 308 | |||||
Daimler Finance NA LLC | |||||||
1.500% due 07/05/19 (Þ) | 1,635 | 1,618 | John Deere Capital Corp. | ||||
1.750% due 10/30/19 (Þ) | 400 | 396 | 1.650% due 10/15/18 | 860 | 861 | ||
Diamond 1 Finance Corp. / Diamond 2 | Johnson & Johnson | ||||||
Finance Corp | 2.250% due 03/03/22 | 1,100 | 1,111 | ||||
5.450% due 06/15/23 (Þ) | 970 | 1,048 | JPMorgan Chase & Co. | ||||
eBay, Inc. | 1.625% due 05/15/18 | 700 | 700 | ||||
2.200% due 08/01/19 | 3,709 | 3,725 | 2.350% due 01/28/19 | 2,190 | 2,211 | ||
Ecolab, Inc. | 2.750% due 06/23/20 | 3,340 | 3,393 | ||||
4.350% due 12/08/21 | 560 | 607 | 2.682% due 03/01/21 (Ê) | 5,006 | 5,149 | ||
EI du Pont de Nemours and Co. | Kellogg Co. | ||||||
2.200% due 05/01/20 | 1,605 | 1,608 | 4.150% due 11/15/19 | 600 | 632 | ||
EnLink Midstream Partners, LP | KeyCorp | ||||||
2.700% due 04/01/19 | 310 | 310 | 2.300% due 12/13/18 | 1,005 | 1,010 | ||
ERAC USA Finance LLC | Kinder Morgan Energy Partners, LP | ||||||
2.800% due 11/01/18 (Þ) | 2,075 | 2,099 | 3.500% due 03/01/21 | 450 | 460 | ||
Exelon Corp. | Kraft Heinz Foods Co. | ||||||
2.850% due 06/15/20 | 650 | 661 | 4.875% due 02/15/25 (Þ) | 605 | 648 |
Series WI
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 463
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
2.800% due 07/02/20 | 1,610 | 1,635 | 6.500% due 12/01/18 | 1,085 | 1,166 | ||
Lehman Brothers Holdings Capital Trust | Philip Morris International, Inc. | ||||||
VII | 1.625% due 02/21/19 | 1,025 | 1,022 | ||||
5.857% due 11/29/49 (ƒ)(Ø) | 270 | — | PNC Bank NA | ||||
Level 3 Financing, Inc. | Series BKNT | ||||||
3.241% due 02/22/24 (Ê) | 1,000 | 1,003 | 1.850% due 07/20/18 | 1,360 | 1,363 | ||
Lockheed Martin Corp. | Pricoa Global Funding I | ||||||
3.350% due 09/15/21 | 590 | 614 | 1.450% due 09/13/19 (Þ) | 510 | 504 | ||
Manufacturers & Traders Trust Co. | Principal Life Global Funding II | ||||||
Series BKNT | 2.150% due 01/10/20 (Þ) | 495 | 496 | ||||
2.300% due 01/30/19 | 445 | 449 | Protective Life Global Funding | ||||
MassMutual Global Funding II | 1.555% due 09/13/19 (Þ) | 2,055 | 2,026 | ||||
1.550% due 10/11/19 (Þ) | 980 | 969 | PSEG Power LLC | ||||
McDonald's Corp. | 2.450% due 11/15/18 | 1,150 | 1,156 | ||||
2.750% due 12/09/20 | 490 | 499 | Quebecor World Capital Corp. | ||||
MeadWestvaco Corp. | 4.875% due 01/02/49 (Þ)(Ø) | 205 | — | ||||
7.375% due 09/01/19 | 635 | 708 | 6.125% due 11/15/49 (Ø) | 70 | — | ||
Medtronic, Inc. | QVC, Inc. | ||||||
Series WI | 3.125% due 04/01/19 | 785 | 794 | ||||
2.500% due 03/15/20 | 1,525 | 1,554 | Raytheon Co. | ||||
Merck Sharp & Dohme Corp. | 6.400% due 12/15/18 | 665 | 716 | ||||
5.000% due 06/30/19 | 700 | 748 | Reynolds American, Inc. | ||||
Metropolitan Life Global Funding I | 6.875% due 05/01/20 | 695 | 785 | ||||
1.950% due 12/03/18 (Þ) | 755 | 756 | SBA Tower Trust | ||||
1.550% due 09/13/19 (Þ) | 720 | 712 | Series 2014-1A | ||||
Microsoft Corp. | 2.898% due 10/15/19 (Þ) | 1,415 | 1,423 | ||||
1.300% due 11/03/18 | 925 | 924 | |||||
1.100% due 08/08/19 | 5,585 | 5,530 | Scientific Games International, Inc. | ||||
4.994% due 10/01/21 (Ê) | 1,880 | 1,907 | |||||
Morgan Stanley | Southern Co. (The) | ||||||
2.200% due 12/07/18 | 1,865 | 1,874 | 2.150% due 09/01/19 | 520 | 520 | ||
2.800% due 06/16/20 | 1,075 | 1,091 | |||||
Southern Power Co. | |||||||
Nestle Holdings, Inc. | Series 15A | ||||||
2.000% due 09/30/19 | 4,010 | 4,029 | 1.500% due 06/01/18 | 1,075 | 1,072 | ||
New York Life Global Funding | Sprint Spectrum Co. LLC / Sprint | ||||||
1.700% due 09/14/21 (Þ) | 1,540 | 1,499 | Spectrum Co II LLC / Sprint Spectrum | ||||
Newell Brands, Inc. | Co III LLC | ||||||
5.000% due 11/15/23 | 1,105 | 1,179 | Series A-1 | ||||
NextEra Energy Capital Holdings, Inc. | 3.360% due 09/20/21 (Þ) | 695 | 701 | ||||
1.649% due 09/01/18 | 720 | 718 | Starbucks Corp. | ||||
Nissan Motor Acceptance Corp. | 2.100% due 02/04/21 | 460 | 463 | ||||
1.550% due 09/13/19 (Þ) | 820 | 809 | Svenska Handelsbanken AB | ||||
Norfolk Southern Corp. | 1.580% due 02/12/19 (Ê)(~) | 1,950 | 1,950 | ||||
1.800% due 02/14/20 | 3,990 | 3,991 | Sysco Corp. | ||||
3.250% due 12/01/21 | 495 | 512 | 2.600% due 10/01/20 | 570 | 576 | ||
Northwest Airlines Class A Pass- | Thomson Reuters Corp. | ||||||
Through Trust | 6.500% due 07/15/18 | 685 | 722 | ||||
Series 07-1 | Time Warner, Inc. | ||||||
7.027% due 11/01/19 | 235 | 261 | 4.750% due 03/29/21 | 597 | 645 | ||
Oracle Corp. | Toyota Motor Credit Corp. | ||||||
1.900% due 09/15/21 | 620 | 614 | 1.415% due 01/09/19 (Ê) | 3,810 | 3,820 | ||
PACCAR Financial Corp. | 1.700% due 02/19/19 | 950 | 951 | ||||
1.200% due 08/12/19 | 905 | 892 | 1.950% due 04/17/20 | 500 | 501 | ||
PepsiCo, Inc. | Series GMTN | ||||||
5.000% due 06/01/18 | 570 | 592 | 1.615% due 07/13/18 (Ê) | 785 | 789 | ||
Pfizer, Inc. | Unilever Capital Corp. | ||||||
2.100% due 05/15/19 | 4,617 | 4,658 | 4.250% due 02/10/21 | 592 | 635 | ||
Pharmacia LLC | 1.375% due 07/28/21 | 4,290 | 4,144 |
See accompanying notes which are an integral part of the financial statements.
464 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
US Bancorp | 7.000% due 05/07/20 (Þ) | 780 | 851 | ||||
2.200% due 04/25/19 | 3,465 | 3,497 | Canadian Oil Sands, Ltd. | ||||
Verizon Communications, Inc. | 4.500% due 04/01/22 (Þ) | 500 | 512 | ||||
1.918% due 06/17/19 (Ê) | 5,535 | 5,578 | Credit Agricole SA | ||||
1.375% due 08/15/19 | 1,025 | 1,012 | 2.079% due 06/10/20 (Ê)(Þ) | 1,805 | 1,816 | ||
4.500% due 09/15/20 | 3,325 | 3,549 | Credit Suisse Group AG | ||||
3.125% due 03/16/22 | 970 | 983 | 3.574% due 01/09/23 (Þ) | 870 | 881 | ||
Volkswagen Group of America Finance | Danone SA | ||||||
LLC | 1.691% due 10/30/19 (Þ) | 1,150 | 1,136 | ||||
2.450% due 11/20/19 (Þ) | 870 | 873 | |||||
Danske Bank A/S | |||||||
Walgreens Boots Alliance, Inc. | 1.720% due 03/02/20 (Ê)(Þ) | 2,100 | 2,100 | ||||
2.600% due 06/01/21 | 1,465 | 1,474 | Delta 2 Lux Sarl Covenant-Lite Term | ||||
Wal-Mart Stores, Inc. | Loan B3 | ||||||
1.950% due 12/15/18 | 3,585 | 3,613 | 4.934% due 07/30/21 (Ê) | 1,750 | 1,752 | ||
Wells Fargo & Co. | Deutsche Telekom International Finance | ||||||
2.125% due 04/22/19 | 2,680 | 2,693 | BV | ||||
Series GMTN | 2.225% due 01/17/20 (Þ) | 1,130 | 1,130 | ||||
2.600% due 07/22/20 | 2,585 | 2,617 | FMG Resources Pty, Ltd. Term Loan B | ||||
Wells Fargo Bank NA | 3.750% due 06/30/19 | 133 | 134 | ||||
1.750% due 12/06/19 (Ê) | 4,190 | 4,225 | GFL Environmental, Inc. Term Loan B | ||||
Williams Partners, LP | 3.897% due 09/27/23 (Ê) | 995 | 999 | ||||
4.125% due 11/15/20 | 502 | 526 | HSBC Holdings PLC | ||||
WMG Acquisition Corp. Term Loan C | 3.262% due 03/13/23 | 375 | 380 | ||||
3.936% due 11/01/23 (Ê) | 751 | 753 | ING Bank NV | ||||
Xcel Energy, Inc. | 1.650% due 08/15/19 (Þ) | 1,730 | 1,710 | ||||
2.600% due 03/15/22 | 690 | 691 | LyondellBasell Industries NV | ||||
5.000% due 04/15/19 | 397 | 417 | |||||
ZFS Finance USA Trust V | Mondelez International Holdings | ||||||
6.500% due 05/09/37 (Þ) | 325 | 325 | Netherlands BV | ||||
248,498 | 1.625% due 10/28/19 (Þ) | 1,440 | 1,419 | ||||
International Debt - 7.9% | Mood Media Corp. Term Loan | ||||||
1011778 B.C. Unlimited Liability Co. | 7.148% due 05/01/19 (Ê) | 970 | 969 | ||||
1st Lien Term Loan B3 | |||||||
3.396% due 02/17/24 (Ê) | 729 | 729 | Mylan NV | ||||
1011778 B.C. Unlimited Liability Co. | Series WI | ||||||
1st Lien Term Loan B4 | 3.150% due 06/15/21 | 1,450 | 1,464 | ||||
3.250% due 02/17/24 | 1,075 | 1,075 | Petroleos Mexicanos | ||||
Actavis Funding SCS | Series WI | ||||||
3.000% due 03/12/20 | 1,500 | 1,529 | 5.500% due 02/04/19 | 1,760 | 1,841 | ||
America Movil SAB de CV | Royal Bank of Canada | ||||||
5.000% due 10/16/19 | 1,355 | 1,446 | Series GMTN | ||||
AP NMT Acquisition BV 1st Lien Term | 1.800% due 07/30/18 | 1,310 | 1,313 | ||||
Loan | 1.900% due 02/01/22 (Ê) | 3,344 | 3,368 | ||||
6.897% due 08/13/21 (Ê) | 488 | 429 | Royal Bank of Scotland Group PLC | ||||
AstraZeneca PLC | 4.700% due 07/03/18 | 1,025 | 1,049 | ||||
2.375% due 11/16/20 | 965 | 972 | Sanofi | ||||
Australia and New Zealand Banking | 4.000% due 03/29/21 | 1,024 | 1,091 | ||||
Group, Ltd. | |||||||
Series REGS | Shell International Finance BV | ||||||
1.816% due 09/23/19 (Ê) | 4,560 | 4,587 | 1.764% due 11/10/18 (Ê) | 2,390 | 2,406 | ||
1.875% due 05/10/21 | 2,115 | 2,082 | |||||
Bank of Montreal | |||||||
1.900% due 08/27/21 | 565 | 556 | Shire Acquisitions Investments Co. | ||||
1.900% due 09/23/19 | 1,175 | 1,168 | |||||
Series YCD | |||||||
1.552% due 06/18/18 (Ê)(~) | 4,075 | 4,074 | SMART ABS Trust | ||||
Barclays PLC | Series 2015-3US Class A3A | ||||||
3.684% due 01/10/23 | 550 | 560 | 1.660% due 08/14/19 | 865 | 863 | ||
BP Capital Markets PLC | Svenska Handelsbanken AB | ||||||
1.375% due 05/10/18 | 505 | 504 | Series BKNT | ||||
2.302% due 03/30/21 (Ê) | 3,690 | 3,763 | |||||
Braskem Finance, Ltd. |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 465
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Teva Pharmaceutical Finance | 4.250% due 08/04/22 (Ê) | 478 | 481 | ||||
Netherlands III BV | Asurion LLC Term Loan B5 | ||||||
1.700% due 07/19/19 | 755 | 747 | 4.750% due 11/01/23 (Ê) | 490 | 494 | ||
2.200% due 07/21/21 | 920 | 894 | Avaya, Inc. Term Loan B7 | ||||
Toronto-Dominion Bank (The) | 6.416% due 05/29/20 (Ê)(Ø) | 969 | 808 | ||||
1.578% due 01/18/19 (Ê) | 1,000 | 1,003 | |||||
1.993% due 01/22/19 (Ê) | 2,680 | 2,707 | Avolon Holdings, Ltd. Term Loan B | ||||
3.743% due 01/13/22 | 250 | 254 | |||||
2.125% due 04/07/21 | 830 | 826 | |||||
Bass Pro Group LLC 1st Lien Term Loan | |||||||
Series GMTN | 5.897% due 05/16/18 | 875 | 879 | ||||
1.750% due 07/23/18 | 845 | 847 | Bass Pro Group LLC 1st Lien Term | ||||
Total Capital SA | Loan B | ||||||
4.450% due 06/24/20 | 200 | 215 | 6.147% due 12/16/23 (Ê) | 675 | 657 | ||
Travelport Finance (Luxembourg) Sarl | Berry Plastics Corp. 1st Lien Term | ||||||
1st Lien Term Loan C | Loan I | ||||||
4.406% due 09/02/21 (Ê) | 956 | 963 | 3.493% due 10/01/22 (Ê) | 363 | 365 | ||
Westpac Banking Corp. | 3.524% due 10/01/22 | 288 | 290 | ||||
1.550% due 05/25/18 | 1,240 | 1,241 | BG Foods, Inc. Term Loan B | ||||
1.912% due 07/30/18 (Ê) | 750 | 755 | 3.243% due 11/02/22 | 853 | 861 | ||
1.950% due 11/23/18 | 1,825 | 1,828 | BioScrip, Inc. Delayed Draw Term Loan | ||||
65,101 | 9.250% due 07/31/20 (Ê)(Þ) | 44 | 43 | ||||
Loan Agreements - 12.5% | BioScrip, Inc. Term Loan B | ||||||
Abacus Innovations Corp. Term Loan B | 9.250% due 07/31/20 (Ê)(Þ) | 73 | 72 | ||||
3.250% due 08/16/23 (Ê) | 1,247 | 1,257 | BJ's Wholesale Club, Inc. 2nd Lien Term | ||||
ABG Intermediate Holdings 2 LLC 1st | Loan | ||||||
Lien Term Loan | 8.500% due 01/27/25 (Ê) | 325 | 325 | ||||
5.146% due 05/27/21 (Ê) | 456 | 458 | BWAY Holding Co. Term Loan B | ||||
7.000% due 05/27/21 | 1 | 1 | 4.233% due 03/22/24 | 1,000 | 993 | ||
ABG Intermediate Holdings 2 LLC 2nd | Cable One, Inc. Term Loan B | ||||||
Lien Term Loan | 3.430% due 04/05/24 | 500 | 503 | ||||
9.646% due 05/27/22 (Ê) | 500 | 504 | Caesars Entertainment Corp. 1st Lien | ||||
Active Network, Inc. 1st Lien Term Loan | Term Loan B | ||||||
6.000% due 11/15/20 | 738 | 739 | 7.000% due 10/11/20 (Ê) | 1,238 | 1,240 | ||
Advanced Disposal Services, Inc. Term | Capital Automotive LP 1st Lien Term | ||||||
Loan B3 | Loan | ||||||
3.696% due 11/10/23 (Ê) | 984 | 992 | 4.000% due 03/17/24 | 250 | 252 | ||
Air Methods Corp. Term Loan B | Capital Automotive LP 2nd Lien Term | ||||||
4.573% due 04/05/24 | 483 | 483 | Loan | ||||
7.000% due 03/24/25 (Ê) | 250 | 255 | |||||
Altice US Finance I Corp. Term Loan B | |||||||
3.283% due 07/14/25 | 100 | 100 | CBS Radio, Inc. Term Loan B | ||||
Alvogen Pharmaceutical US, Inc. Term | 4.500% due 10/17/23 (Ê) | 513 | 516 | ||||
Loan | CCC Information Services, Inc. 1st Lien | ||||||
6.000% due 04/02/22 (Ê) | 790 | 785 | Term Loan | ||||
AMC Entertainment Holdings, Inc. Term | 4.040% due 03/29/24 | 250 | 249 | ||||
Loan B | CH Hold Corp. 1st Lien Term Loan | ||||||
3.742% due 12/15/23 (Ê) | 998 | 1,001 | 3.000% due 02/01/24 (Ê) | 91 | 91 | ||
American Airlines, Inc. Term Loan B | CH Hold Corp. 1st Lien Term Loan B | ||||||
2.993% due 06/26/20 | 1,471 | 1,471 | 4.000% due 02/01/24 (Ê) | 909 | 915 | ||
AP Gaming I LLC 1st Lien Term Loan B | CH Hold Corp. 2nd Lien Term Loan B | ||||||
9.250% due 12/20/20 (Ê) | 490 | 493 | 8.250% due 02/01/25 (Ê) | 125 | 127 | ||
Arbor Pharmaceuticals, Inc. Term Loan | Change Healthcare Holdings LLC 1st | ||||||
B | Lien Term Loan B | ||||||
6.147% due 06/28/23 | 988 | 1,005 | 3.750% due 03/01/24 (Ê) | 1,000 | 1,003 | ||
Arris Group, Inc. Term Loan B | Charter Communications Operating LLC | ||||||
3.545% due 04/19/24 | 1,000 | 1,004 | 1st Lien Term Loan H | ||||
3.000% due 01/15/22 (Ê) | 984 | 987 | |||||
Artic Glacier USA, Inc. Term Loan B | Checkout Holding Corp. Covenant-Lite | ||||||
5.250% due 03/14/24 | 150 | 152 | 1st Lien Term Loan | ||||
AssuredPartners, Inc. 2016 Term Loan B | 4.500% due 04/09/21 (Ê) | 955 | 874 | ||||
5.250% due 10/21/22 (Ê) | 291 | 292 | Chemours Co. (The) Term Loan B | ||||
Asurion LLC 1st Lien Term Loan B4 | 3.490% due 05/12/22 | 257 | 259 |
See accompanying notes which are an integral part of the financial statements.
466 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
CHS/Community Health Systems, Inc. | 5.250% due 11/27/19 (Ê) | 479 | 457 | ||||
1st Lien Term Loan G | FullBeauty Brands Holdings Corp. 1st | ||||||
3.804% due 12/31/19 (Ê) | 582 | 580 | Lien Term Loan | ||||
Cinemark USA, Inc. Term Loan B | 5.750% due 10/14/22 (Ê) | 743 | 574 | ||||
3.240% due 05/08/22 (Ê) | 1,000 | 1,009 | Gartner, Inc. Term Loan B | ||||
Cision, Inc. Term Loan B | 2.992% due 03/14/24 | 500 | 503 | ||||
7.147% due 05/12/23 | 993 | 998 | GCI Holdings, Inc. 1st Lien Term Loan B | ||||
Commercial Barge Line Co. 1st Lien | 3.993% due 02/02/22 | 979 | 984 | ||||
Term Loan | GENEX Services, Inc. 1st Lien Term | ||||||
9.750% due 11/12/20 (Ê) | 846 | 768 | Loan | ||||
Community Health Systems, Inc. Term | 5.250% due 05/30/21 (Ê) | 748 | 752 | ||||
Loan H | Global Healthcare Exchange LLC Term | ||||||
4.054% due 01/27/21 (Ê) | 1,071 | 1,064 | Loan B | ||||
Constellation Brands, Inc. Term Loan B | 5.250% due 08/13/22 (Ê) | 515 | 521 | ||||
4.887% due 11/14/23 | 125 | 126 | Go Daddy Operating Co. LLC 1st Lien | ||||
Constellis Holdings LLC Term Loan B | Term Loan | ||||||
6.155% due 04/13/24 | 500 | 494 | 3.493% due 02/06/24 (Ê) | 500 | 502 | ||
ConvergeOne Holdings Corp. Covenant- | Gray Television, Inc. 1st Lien Term | ||||||
Lite 1st Lien Term Loan | Loan B | ||||||
6.522% due 06/17/20 (Ê) | 973 | 973 | 3.483% due 02/07/24 | 998 | 1,004 | ||
Cortes NP Acquisition Corp. Term Loan | Gruden Acquisition, Inc. 1st Lien Term | ||||||
B | Loan | ||||||
5.000% due 11/30/23 | 484 | 487 | 5.897% due 08/18/22 (Ê) | 623 | 602 | ||
Harland Clarke Holdings Corp. Term | |||||||
CPI Acquisition, Inc. Term Loan B | Loan B6 | ||||||
5.834% due 08/17/22 (Ê) | 718 | 670 | 6.646% due 02/02/22 | 888 | 889 | ||
Creative Artists Agency LLC 1st Lien | Hawaiian Telcom Communications, Inc. | ||||||
Term Loan B | Term Loan B | ||||||
4.500% due 02/13/24 (Ê) | 499 | 505 | 7.250% due 06/06/19 (Ê) | 1,222 | 1,221 | ||
CSC Holdings LLC 1st Lien Term Loan | HCA, Inc. Term Loan B8 | ||||||
3.244% due 07/09/25 | 886 | 885 | 3.243% due 02/15/24 | 499 | 503 | ||
CSRA, Inc. Term Loan | Hilton Worldwide Finance LLC Term | ||||||
3.493% due 10/29/22 (Ê) | 622 | 626 | Loan B2 | ||||
Cvent, Inc. 1st Lien Term Loan | 2.991% due 10/25/23 (Ê) | 1,224 | 1,234 | ||||
5.000% due 11/29/23 (Ê) | 500 | 503 | Indigo Merger Sub I, Inc. 1st Lien Term | ||||
Dell International LLC 1st Lien Term | Loan | ||||||
Loan B | 4.750% due 07/08/21 (Ê) | 973 | 981 | ||||
3.500% due 09/07/23 (Ê) | 1,494 | 1,498 | Intrawest Operations Group LLC Term | ||||
DigitalGlobe, Inc. 1st Lien Term Loan B | Loan | ||||||
3.743% due 12/22/23 (Ê) | 1,247 | 1,252 | 4.500% due 12/09/20 (Ê) | 688 | 691 | ||
EagleView Technology Corp. 1st Lien | J Crew Group, Inc. Term Loan B | ||||||
Term Loan | 4.000% due 03/05/21 (Ê) | 230 | 151 | ||||
5.410% due 07/15/22 (Ê) | 249 | 249 | 4.147% due 03/05/21 | 260 | 170 | ||
Eastman Kodak Co. Term Loan | KRATON Polymers LLC 1st Lien Term | ||||||
7.422% due 09/03/19 (Ê) | 964 | 966 | Loan B | ||||
5.000% due 01/06/22 (Ê) | 136 | 138 | |||||
Eldorado Resorts LLC Term Loan B | |||||||
5.250% due 03/13/24 | 750 | 748 | Lannett Co., Inc. Term Loan A | ||||
5.750% due 11/25/20 (Ê) | 562 | 556 | |||||
Emerald US, Inc. Term Loan B1 | |||||||
5.147% due 05/09/21 | 1,000 | 940 | Las Vegas Sands LLC Term Loan B | ||||
EnergySolutions LLC 1st Lien Term | 2.990% due 03/29/24 | 1,230 | 1,231 | ||||
Loan B | Learfield Communications, Inc. 1st Lien | ||||||
6.750% due 05/29/20 (Ê) | 795 | 803 | Term Loan | ||||
4.250% due 11/17/23 | 249 | 251 | |||||
Envision Healthcare Corp. Term Loan B | Lions Gate Enterntainment, Inc. 1st Lien | ||||||
4.150% due 11/17/23 (Ê) | 998 | 1,007 | Term Loan | ||||
Epic Health Services, Inc. 1st Term Loan | 3.982% due 10/12/23 | 400 | 402 | ||||
5.290% due 03/28/24 | 67 | 67 | LTS Buyer LLC 1st Lien Term Loan | ||||
5.305% due 03/28/24 | 67 | 67 | 4.397% due 04/13/20 (Ê) | 982 | 985 | ||
5.431% due 03/28/24 | 67 | 67 | M/A-COM Technology Solutions | ||||
First Data Corp Repriced Term Loan | Holdings, Inc. 1st Lien Term Loan | ||||||
3.988% due 07/10/22 (Ê) | 1,283 | 1,290 | 3.989% due 05/08/21 (Ê) | 496 | 503 | ||
FPC Holdings, Inc. 1st Lien Term Loan | MacDermid, Inc. Term Loan B4 |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 467
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
5.000% due 06/07/23 (Ê) | 594 | 596 | Quest Software US Holdings, Inc. 1st | |||||
Match Group, Inc. Term Loan B1 | Lien Term Loan | |||||||
4.277% due 10/27/22 (Ê) | 355 | 359 | 7.000% due 10/31/22 (Ê) | 998 | 1,014 | |||
MCC Iowa LLC Term Loan H | Quincy Newspapers, Inc. Term Loan B | |||||||
3.450% due 01/29/21 (Ê) | 980 | 984 | 5.000% due 11/02/22 (Ê) | 910 | 918 | |||
Mergermarket USA, Inc. 1st Lien Term | 7.000% due 11/02/22 | 7 | 7 | |||||
Loan | Radio One, Inc. 1st Lien Term Loan B | |||||||
4.554% due 02/04/21 (Ê) | 831 | 831 | 5.080% due 04/05/23 (Ê) | 500 | 497 | |||
4.647% due 02/04/21 | 16 | 16 | Renaissance Home Equity Loan Trust | |||||
MGM Growth Properties Operating | 1st Lien Term Loan | |||||||
Partnership, LP Term Loan B | Series 2005-4 Class A3 | |||||||
3.493% due 04/25/23 (Ê) | 990 | 992 | 4.750% due 02/25/36 | 41 | 41 | |||
Minerals Technologies, Inc. 1st Lien | RentPath, Inc. 1st Lien Term Loan | |||||||
Term Loan B | 6.250% due 12/17/21 (Ê) | 1,955 | 1,928 | |||||
3.250% due 02/14/24 | 344 | 346 | ||||||
RHP Hotel Properties LP Term Loan B | ||||||||
3.410% due 02/14/24 | 159 | 160 | 3.750% due 01/15/21 (Ê) | 950 | 954 | |||
Mission Broadcasting, Inc. 1st Lien Term | ||||||||
Loan B | Rovi Solutions Corp. Term Loan B | |||||||
3.994% due 01/17/24 (Ê) | 42 | 43 | 3.500% due 07/02/21 (Ê) | 499 | 500 | |||
MRI Software LLC Term Loan | RPI Finance Trust Term Loan B6 | |||||||
5.397% due 06/18/21 | 492 | 487 | 3.153% due 03/07/23 | 125 | 125 | |||
Navistar, Inc. 1st Lien Term Loan B | SCS Holdings, Inc. Term Loan | |||||||
5.000% due 08/07/20 (Ê) | 494 | 500 | 5.250% due 10/30/22 (Ê) | 955 | 962 | |||
Signode Industrial Group US, Inc. Term | ||||||||
New Millennium Holdco, Inc. Term Loan | Loan B | |||||||
7.500% due 12/21/20 (Ê) | 488 | 260 | 3.750% due 05/01/21 (Ê) | 436 | 438 | |||
Nexstar Broadcasting, Inc. 1st Lien Term | ||||||||
Loan B | 3.897% due 05/01/21 | 336 | 337 | |||||
3.994% due 01/17/24 (Ê) | 435 | 439 | Solarwinds Holdings, Inc. 1st Lien Term | |||||
Loan | ||||||||
Nielsen Finance LLC Term Loan B4 | 4.500% due 02/05/23 (Ê) | 1,235 | 1,241 | |||||
2.990% due 10/24/23 | 250 | 251 | ||||||
Solera LLC Term Loan B | ||||||||
NN, Inc. Term Loan | 4.250% due 03/04/23 (Ê) | 467 | 470 | |||||
4.733% due 03/22/21 | 500 | 500 | ||||||
NPC International, Inc. 1st Lien Term | SourceHOV LLC 1st Lien Term Loan B | |||||||
Loan | 7.897% due 10/31/19 (Ê) | 453 | 435 | |||||
4.500% due 03/17/24 | 450 | 454 | Spectrum Brands, Inc. 1st Lien Term | |||||
Loan B | ||||||||
Open Text Corp. Term Loan B | 3.152% due 06/23/22 (Ê) | 1,244 | 1,251 | |||||
2.993% due 01/16/21 (Ê) | 1,496 | 1,506 | Sprint Communications, Inc. 1st Lien | |||||
Penn National Gaming, Inc. 1st Lien | Term Loan B | |||||||
Term Loan B | 3.500% due 01/13/24 | 855 | 856 | |||||
3.524% due 01/19/24 (Ê) | 875 | 880 | Station Casinos LLC 1st Lien Term | |||||
Pharmaceutical Product Development | Loan B | |||||||
LLC Term Loan B | 3.500% due 06/08/23 (Ê) | 374 | 374 | |||||
4.250% due 08/18/22 (Ê) | 525 | 527 | Steak n Shake Operations, Inc. Term | |||||
4.397% due 08/18/22 | USD | 590 | 593 | Loan | ||||
Pilot Travel Centers LLC 1st Lien Term | 4.750% due 03/19/21 (Ê) | 899 | 897 | |||||
Loan B | Sterigenics-Nordion Holdings LLC Term | |||||||
2.993% due 05/25/23 (Ê) | 499 | 503 | Loan B | |||||
Playa Resorts Holding BV Term Loan B | 4.149% due 03/23/22 | 250 | 249 | |||||
4.040% due 04/05/24 | 500 | 500 | Sungard Availability Services Capital, | |||||
Portillo's Holdings, LLC Covenant-Lite | Inc. Covenant-Lite 1st Lien Term | |||||||
1st Lien Term Loan | Loan B | |||||||
5.647% due 08/01/21 (Ê) | 529 | 532 | 6.000% due 03/31/19 (Ê) | 467 | 461 | |||
Pre-Paid Legal Services, Inc. 2nd Lien | Talbots, Inc. (The) 1st Lien Term Loan | |||||||
Term Loan | 5.500% due 03/17/20 (Ê) | 235 | 209 | |||||
10.250% due 07/01/20 (Ê) | 500 | 499 | TCH-2 Holdings LLC 1st Lien Term | |||||
Prestige Brands, Inc. 1st Lien Term | Loan | |||||||
Loan B4 | 5.500% due 05/12/21 (Ê) | 978 | 985 | |||||
3.743% due 01/26/24 | 963 | 972 | TerraForm AP Acquisition Holdings LLC | |||||
Prime Security Services Borrower LLC | Term Loan B | |||||||
Term Loan B1 | 5.647% due 06/26/22 (Ê) | 918 | 928 | |||||
4.250% due 05/02/22 (Ê) | 1,022 | 1,032 |
See accompanying notes which are an integral part of the financial statements.
468 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
The Nature's Bounty Co. 1st Lien Term | Banc of America Merrill Lynch | ||||||
Loan B | Commercial Mortgage, Inc. | ||||||
4.647% due 05/05/23 (Ê) | 746 | 748 | Series 2003-2 Class H | ||||
TKC Holdings, Inc. 1st Lien Term Loan | 5.765% due 03/11/41 (Þ) | 1,652 | 1,719 | ||||
4.750% due 02/01/23 (Ê) | 1,000 | 1,010 | Series 2005-3 Class AM | ||||
TMS International Corp. Term Loan B | 4.727% due 07/10/43 | 164 | 164 | ||||
4.556% due 10/16/20 (Ê) | 497 | 501 | Banc of America Re-REMIC Trust | ||||
Trans Union LLC Term 1st Lien Loan B2 | Series 2010-UB5 Class A4A | ||||||
3.493% due 04/09/21 (Ê) | 499 | 503 | 5.882% due 02/17/51 (Þ) | 242 | 242 | ||
Transdigm Group, Inc. 1st Lien Term | BCAP LLC Trust | ||||||
Loan F | Series 2009-RR5 Class 6A1 | ||||||
3.993% due 06/09/23 (Ê) | 747 | 746 | 2.284% due 02/26/37 (Ê)(Þ) | 250 | 249 | ||
Tribune Co. Term Loan B | Series 2011-R11 Class 15A1 | ||||||
3.993% due 01/27/24 (Ê) | 669 | 672 | 3.037% due 10/26/33 (Ê)(Þ) | 642 | 647 | ||
Tribune Media Co. 1st Lien Term Loan B | Series 2011-R11 Class 20A5 | ||||||
3.993% due 12/27/20 (Ê) | 54 | 54 | 3.151% due 03/26/35 (Ê)(Þ) | 256 | 256 | ||
TruGreen, LP 1st Lien Term Loan | Bear Stearns ARM Trust | ||||||
6.500% due 04/13/23 (Ê) | 1,093 | 1,100 | |||||
Series 2004-5 Class 2A | |||||||
United Airlines, Inc. Term Loan B | 3.683% due 07/25/34 (Ê) | 353 | 351 | ||||
3.421% due 03/21/24 | 1,000 | 1,002 | Bear Stearns Commercial Mortgage | ||||
Valeant Pharmaceuticals International, | Securities Trust | ||||||
Inc. Term Loan B | |||||||
5.740% due 04/02/22 (Ê) | 557 | 561 | Series 2004-PWR5 Class L | ||||
4.693% due 07/11/42 (Þ) | 416 | 401 | |||||
Varsity Brands, Inc. 1st Lien Term Loan | |||||||
5.000% due 12/11/21 | 122 | 123 | Series 2004-PWR6 Class B | ||||
4.945% due 11/11/41 (Þ) | 261 | 262 | |||||
Verdesian Life Sciences LLC Term Loan | |||||||
6.172% due 07/01/20 (Ê) | 885 | 764 | Series 2007-PW18 Class A1A | ||||
5.602% due 06/11/50 | 272 | 276 | |||||
Veresen Midstream, Ltd. Term Loan B2 | |||||||
4.500% due 03/31/22 (Ê) | 372 | 374 | Capmark Mortgage Securities, Inc. | ||||
Virgin Media Bristol LLC 1st Lien Term | Series 1997-C2 Class G | ||||||
Loan I | 6.750% due 04/15/29 | 407 | 417 | ||||
3.744% due 01/31/25 (Ê) | 500 | 502 | CCRESG Commercial Mortgage Trust | ||||
Vouvray US Finance LLC Term Loan B | Series 2016-HEAT Class C | ||||||
1.000% due 01/27/24 (v) | 1,000 | 999 | 4.919% due 04/10/29 (Þ) | 775 | 796 | ||
Wastequip LLC Term Loan | Citigroup Commercial Mortgage Trust | ||||||
5.500% due 08/09/19 (Ê) | 95 | 95 | Series 2014-GC19 Class A1 | ||||
William Morris Endeavor Entertainment | 1.199% due 03/10/47 | 136 | 136 | ||||
LLC 1st Lien Term Loan | Series 2016-C1 Class A1 | ||||||
4.250% due 05/06/21 (Ê) | 972 | 977 | 1.506% due 05/10/49 | 1,629 | 1,613 | ||
World Endurance Holdings 1st Lien | |||||||
Term Loan | Commercial Mortgage Trust | ||||||
5.397% due 06/26/21 (Ê) | 977 | 973 | Series 2005-GG3 Class E | ||||
Yonkers Racing Corp. 1st Lien Term | 5.087% due 08/10/42 | 712 | 716 | ||||
Loan | Series 2006-C8 Class AJ | ||||||
4.250% due 08/16/19 | 874 | 875 | 5.377% due 12/10/46 | 809 | 811 | ||
102,395 | Series 2008-LS1 Class A4B | ||||||
Mortgage-Backed Securities - 16.9% | 6.109% due 12/10/49 | 1,412 | 1,423 | ||||
Banc of America Commercial Mortgage | Series 2013-CR6 Class A2 | ||||||
Trust | 2.122% due 03/10/46 | 400 | 401 | ||||
Series 2007-4 Class AM | Series 2013-LC13 Class A1 | ||||||
5.886% due 02/10/51 | 178 | 179 | 1.309% due 08/10/46 | 211 | 211 | ||
Series 2016-UB10 Class A1 | Series 2014-CR15 Class A1 | ||||||
1.559% due 07/15/49 | 701 | 696 | 1.218% due 02/10/47 | 1,116 | 1,113 | ||
Banc of America Funding Trust | Series 2014-CR16 Class A1 | ||||||
Series 2006-A Class 1A1 | 1.445% due 04/10/47 | 223 | 222 | ||||
3.075% due 02/20/36 (Ê) | 289 | 285 | Credit Suisse Commercial Mortgage | ||||
Series 2006-F Class 1A2 | Trust | ||||||
3.234% due 07/20/36 (Ê) | 21 | 15 | Series 2007-C5 Class A4 | ||||
5.695% due 09/15/40 | 1,226 | 1,230 |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 469
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Credit Suisse Commercial Mortgage | Series 2012-149 Class CD | ||||||
Trust Series | 1.500% due 01/25/28 | 1,851 | 1,818 | ||||
Series 2006-C1 Class G | Series 2013-21 Class BA | ||||||
5.672% due 02/15/39 (Þ) | 376 | 370 | 1.000% due 03/25/23 (v) | 1,823 | 1,797 | ||
Credit Suisse First Boston Mortgage | |||||||
Securities Corp. | Series 2013-136 Class KA | ||||||
Series 1998-C1 Class F | 2.000% due 05/25/25 | 656 | 657 | ||||
6.000% due 05/17/40 (Þ) | 127 | 129 | Fannie Mae Whole Loan | ||||
Series 2004-C4 Class E | Series 2004-W9 Class 2A1 | ||||||
5.135% due 10/15/39 (Þ) | 995 | 1,029 | 6.500% due 02/25/44 | 21 | 24 | ||
Deutsche Bank Commercial Mortgage | Fannie Mae-Aces | ||||||
Trust | Series 2012-M2 Class A1 | ||||||
Series 2016-C1 Class A1 | 1.824% due 02/25/22 | 2,228 | 2,230 | ||||
1.676% due 05/10/49 | 342 | 341 | Series 2012-M8 Class ASQ2 | ||||
Deutsche Mortgage Securities, Inc. Re- | 1.520% due 12/25/19 | 939 | 939 | ||||
REMIC Trust | Series 2013-M5 Class ASQ4 | ||||||
Series 2007-WM1 Class A1 | 1.919% due 01/25/22 | 1,172 | 1,165 | ||||
3.717% due 06/27/37 (Ê)(Þ) | 634 | 638 | Series 2013-M9 Class ASQ2 | ||||
Fannie Mae | 1.825% due 06/25/18 | 495 | 495 | ||||
3.738% due 2018 | 1,251 | 1,268 | |||||
4.500% due 2019 | 16 | 16 | Series 2014-M1 Class A1 | ||||
2.325% due 07/25/23 | 281 | 283 | |||||
4.506% due 2019 | 2,280 | 2,315 | |||||
Series 2015-M15 Class ASQ1 | |||||||
5.700% due 2019 | 869 | 912 | 0.849% due 01/25/19 | 253 | 252 | ||
4.500% due 2020 | 446 | 459 | |||||
4.500% due 2021 | 24 | 25 | Series 2016-M1 Class ASQ1 | ||||
2.400% due 2022 | 704 | 715 | 1.374% due 07/25/19 | 386 | 384 | ||
2.500% due 2022 | 1,610 | 1,642 | Series 2016-M3 Class ASQ1 | ||||
7.000% due 2022 | 16 | 17 | 1.468% due 03/25/21 | 1,133 | 1,118 | ||
2.000% due 2023 | 2,011 | 2,019 | Series 2016-M6 Class ASQ2 | ||||
2.500% due 2024 | 5,064 | 5,166 | 1.785% due 06/25/19 | 4,050 | 4,053 | ||
2.500% due 2025 | 1,310 | 1,335 | Series 2016-M7 Class AV1 | ||||
3.130% due 2025 | 354 | 363 | 1.557% due 10/25/23 | 950 | 936 | ||
4.500% due 2025 | 354 | 376 | Series 2016-M10 Class FA | ||||
4.790% due 2028 | 322 | 340 | 1.643% due 08/25/28 (Ê) | 1,450 | 1,449 | ||
3.500% due 2030 | 1,374 | 1,438 | FDIC Trust | ||||
5.000% due 2031 | 1,669 | 1,831 | Series 2010-R1 Class A | ||||
3.312% due 2033(Ê) | 17 | 18 | 2.184% due 05/25/50 (Þ) | 1,119 | 1,121 | ||
Fannie Mae Grantor Trust | Series 2011-R1 Class A | ||||||
2.672% due 07/25/26 (Þ) | 444 | 447 | |||||
Series 2001-T4 Class A1 | Federal Home Loan Mortgage Corp. | ||||||
7.500% due 07/25/41 | 462 | 542 | Multifamily Structured Pass Through | ||||
Series 2004-T2 Class 1A3 | Certificates | ||||||
7.000% due 11/25/43 | 406 | 478 | Series 2012-K706 Class X1 | ||||
Fannie Mae REMIC Trust | Interest Only STRIP | ||||||
Series 2004-W12 Class 1A1 | 1.546% due 10/25/18 | 10,436 | 194 | ||||
6.000% due 07/25/44 | 1,774 | 2,047 | Federal Home Loan Mortgage Corp. | ||||
Series 2005-W1 Class 1A2 | Multifamily Structured Pass-Through | ||||||
6.500% due 10/25/44 | 74 | 86 | Certificates | ||||
Fannie Mae REMICS | Series 2010-K007 Class A1 | ||||||
Series 2004-70 Class EB | 3.342% due 12/25/19 | 134 | 135 | ||||
5.000% due 10/25/24 | 60 | 64 | Series 2010-K009 Class A1 | ||||
Series 2007-73 Class A1 | 2.757% due 05/25/20 | 710 | 713 | ||||
1.084% due 07/25/37 (Å)(Ê) | 45 | 44 | Series 2012-K019 Class A1 | ||||
Series 2009-96 Class DB | 1.459% due 09/25/21 | 2,043 | 2,030 | ||||
4.000% due 11/25/29 | 115 | 122 | Series 2016-K504 Class A1 | ||||
Series 2011-88 Class AB | 1.680% due 10/25/19 | 721 | 721 | ||||
2.500% due 09/25/26 | 271 | 272 | Series 2016-KP03 Class A2 | ||||
Series 2011-141 Class EA | 1.780% due 07/25/19 | 9,618 | 9,572 | ||||
1.750% due 07/25/21 | 410 | 410 | Freddie Mac |
See accompanying notes which are an integral part of the financial statements.
470 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
5.500% due 2019 | 182 | 188 | GE Capital Commercial Mortgage Corp. | ||||
5.500% due 2022 | 152 | 160 | Series 2005-C1 Class D | ||||
4.500% due 2026 | 2,583 | 2,752 | 4.410% due 06/10/48 | 174 | 173 | ||
5.500% due 2029 | 95 | 107 | Ginnie Mae | ||||
3.500% due 2030 | 1,190 | 1,248 | Series 2010-14 Class A | ||||
Freddie Mac Multifamily Structured Pass | 4.500% due 06/16/39 | 130 | 138 | ||||
Through Certificates | Series 2010-H12 Class PT | ||||||
Series 2015-KF12 Class A | 5.470% due 11/20/59 | 195 | 197 | ||||
1.683% due 09/25/22 (Ê) | 2,266 | 2,277 | |||||
Freddie Mac Multifamily Structured | Series 2010-H22 Class JI | ||||||
Pass-Through Certificates | Interest Only STRIP | ||||||
Series 2016-KF15 Class A | 2.510% due 11/20/60 | 2,898 | 156 | ||||
1.652% due 02/25/23 (Ê) | 2,220 | 2,235 | Series 2012-H11 Class CI | ||||
Series 2017-KF27 Class A | Interest Only STRIP | ||||||
1.403% due 12/25/26 | 2,165 | 2,169 | 2.908% due 04/20/62 | 4,431 | 216 | ||
Series 2017-KJ13 Class A1 | Series 2013-H03 Class HI | ||||||
2.055% due 09/25/21 | 965 | 966 | Interest Only STRIP | ||||
Freddie Mac Reference REMIC | 2.627% due 12/20/62 | 4,823 | 350 | ||||
Series 2006-R006 Class ZA | Series 2014-137 Class JD | ||||||
6.000% due 04/15/36 | 1,230 | 1,403 | 5.459% due 09/20/44 | 822 | 915 | ||
Freddie Mac REMICS | Ginnie Mae II | ||||||
Series 2003-2559 Class PB | 2.000% due 2040(Ê) | 588 | 608 | ||||
5.500% due 08/15/30 | — | — | 2.500% due 2040(Ê) | 1,962 | 2,034 | ||
Series 2003-2632 Class AB | 3.500% due 2040(Ê) | 40 | 42 | ||||
4.500% due 06/15/18 | 224 | 227 | 5.390% due 2059 | 661 | 673 | ||
Series 2003-2657 Class WT | 5.508% due 2059 | 310 | 312 | ||||
4.500% due 08/15/18 | 53 | 54 | 4.509% due 2062 | 1,649 | 1,711 | ||
Series 2005-2922 Class JN | 4.816% due 2062 | 1,178 | 1,223 | ||||
4.500% due 02/15/20 | 292 | 297 | 4.856% due 2062 | 1,517 | 1,567 | ||
Government National Mortgage | |||||||
Series 2010-3704 Class DC | Association | ||||||
4.000% due 11/15/36 | 244 | 254 | Series 2016-H24 Class KF | ||||
Series 2011-3803 Class PG | 1.810% due 11/20/66 (Ê) | 1,249 | 1,242 | ||||
4.000% due 01/15/41 | 439 | 458 | GS Mortgage Securities Trust | ||||
Series 2011-3816 Class D | Series 2007-GG10 Class A4 | ||||||
3.500% due 08/15/28 | 378 | 384 | 5.949% due 08/10/45 | 30 | 30 | ||
Series 2012-4060 Class QA | Series 2007-GG10 Class AM | ||||||
1.500% due 09/15/26 | 2,133 | 2,092 | 5.795% due 08/10/45 | 2,100 | 2,111 | ||
Series 2012-4083 Class DC | GSMPS Mortgage Loan Trust | ||||||
1.500% due 07/15/27 | 1,269 | 1,249 | |||||
Series 1998-1 Class A | |||||||
Series 2014-4315 Class CA | 8.000% due 09/19/27 (Þ) | 25 | 26 | ||||
2.000% due 01/15/23 | 1,347 | 1,347 | |||||
Series 1998-2 Class A | |||||||
Series 2014-4350 Class CA | 7.750% due 05/19/27 (Þ) | 103 | 105 | ||||
2.000% due 10/15/19 | 250 | 251 | |||||
Series 1998-3 Class A | |||||||
Series 2014-4351 Class GA | 7.750% due 09/19/27 (Þ) | 5 | 5 | ||||
2.000% due 11/15/19 | 540 | 540 | |||||
Series 1999-3 Class A | |||||||
Series 2014-4383 Class JC | 8.000% due 08/19/29 (Þ) | 12 | 11 | ||||
2.000% due 05/15/23 | 597 | 598 | |||||
Series 2005-RP1 Class 1A4 | |||||||
Series 2014-4399 Class A | 8.500% due 01/25/35 (Þ) | 120 | 137 | ||||
2.500% due 07/15/24 | 2,004 | 2,012 | |||||
Freddie Mac Structured Pass-Through | Series 2006-RP1 Class 1A2 | ||||||
Certificates | 7.500% due 01/25/36 (Þ) | 320 | 338 | ||||
Series 2003-58 Class 2A | Series 2006-RP1 Class 1A3 | ||||||
6.500% due 09/25/43 | 27 | 32 | 8.000% due 01/25/36 (Þ) | 65 | 70 | ||
JP Morgan Chase Commercial Mortgage | |||||||
FREMF Mortgage Trust | Securities Trust 2008-C2 | ||||||
Series 2013-K502 Class B | Series 2008-C2 Class A4 | ||||||
2.499% due 03/25/45 (Þ) | 545 | 545 | 6.068% due 02/12/51 | 641 | 649 | ||
Series 2013-K712 Class B | |||||||
3.369% due 05/25/45 (Þ) | 115 | 117 |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 471
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
JPMBB Commercial Mortgage Securities | 7.000% due 08/25/34 (Þ) | 353 | 359 | |||||
Trust | Series 2005-2 Class 1A4 | |||||||
Series 2015-C30 Class A1 | 8.000% due 05/25/35 (Þ) | 257 | 266 | |||||
1.738% due 07/15/48 | 1,381 | 1,381 | Merrill Lynch Mortgage Investors Trust | |||||
Series 2015-C33 Class A1 | Series 1998-C1 Class B | |||||||
1.898% due 12/15/48 | 440 | 441 | Interest Only STRIP | |||||
Series 2016-C1 Class A1 | 6.750% due 11/15/26 | 313 | 314 | |||||
1.695% due 03/15/49 | 1,226 | 1,221 | ||||||
JPMorgan Chase Commercial Mortgage | Series 1998-C3 Class IO | |||||||
Securities Trust | Interest Only STRIP | |||||||
Series 2004-LN2 Class A2 | 0.898% due 12/15/30 | 660 | 2 | |||||
5.115% due 07/15/41 | 28 | 28 | Series 2005-A10 Class A | |||||
Series 2004-LN2 Class B | 1.234% due 02/25/36 (Ê) | 25 | 24 | |||||
5.272% due 07/15/41 | 280 | 277 | Merrill Lynch Mortgage Trust | |||||
Series 2005-CB12 Class AJ | Series 2005-CKI1 Class D | |||||||
4.987% due 09/12/37 | 323 | 323 | 5.515% due 11/12/37 | 212 | 212 | |||
Series 2007-CB20 Class AM | Series 2007-C1 Class A4 | |||||||
5.965% due 02/12/51 | 160 | 162 | 5.838% due 06/12/50 | 389 | 389 | |||
Merrill Lynch/Countrywide Commercial | ||||||||
Series 2007-LD11 Class A4 | Mortgage Trust | |||||||
5.786% due 06/15/49 | 273 | 273 | ||||||
Series 2007-9 Class AM | ||||||||
Series 2007-LD11 Class AM | 5.856% due 09/12/49 | 310 | 314 | |||||
5.786% due 06/15/49 | 780 | 800 | Morgan Stanley Bank of America Merrill | |||||
Series 2007-LDPX Class AM | Lynch Trust | |||||||
5.464% due 01/15/49 | 935 | 934 | Series 2015-C26 Class A1 | |||||
Series 2014-CBM Class A | 1.591% due 10/15/48 | 862 | 852 | |||||
1.889% due 10/15/29 (Ê)(Þ) | 2,580 | 2,580 | Morgan Stanley Capital I Trust | |||||
Series 2015-FL7 Class A | Series 2006-HQ8 Class AJ | |||||||
2.239% due 05/15/28 (Ê)(Þ) | 173 | 173 | 5.495% due 03/12/44 | 102 | 102 | |||
JPMorgan Chase Commercial Mortgage | Series 2006-T21 Class B | |||||||
Trust | 5.238% due 10/12/52 (Þ) | 796 | 800 | |||||
Series 2009-RR1 Class A4B1 | Motel 6 Trust | |||||||
1.000% due 03/18/51 (Þ)(v) | 428 | 426 | ||||||
Series 2015-MTL6 Class B | ||||||||
JPMorgan Mortgage Trust | 3.298% due 02/05/30 (Þ) | 555 | 557 | |||||
Series 2004-A2 Class 1A1 | MSDWMC Owner Trust | |||||||
3.567% due 05/25/34 (Ê) | 81 | 80 | ||||||
Series 2000-F1 Class E | ||||||||
Series 2005-A4 Class 1A1 | 8.928% due 08/15/22 (Þ) | 655 | 679 | |||||
3.220% due 07/25/35 (Ê) | 31 | 31 | Multi Security Asset Trust, LP | |||||
Series 2006-A6 Class 1A2 | Commercial Mortgage-Backed | |||||||
3.203% due 10/25/36 (Ê) | 16 | 15 | Securities Pass-Through Certificates | |||||
LB Commercial Mortgage Trust | Series 2005-RR4A Class F | |||||||
Series 2007-C3 Class A4 | 5.880% due 11/28/35 (Þ) | 805 | 785 | |||||
6.096% due 07/15/44 | 597 | 598 | NCUA Guaranteed Notes Trust | |||||
Series 2007-C3 Class AM | Series 2010-R3 Class 3A | |||||||
5.966% due 07/15/44 | 1,012 | 1,015 | 2.400% due 12/08/20 | 248 | 249 | |||
LB-UBS Commercial Mortgage Trust | RBSCF Trust | |||||||
Series 2004-C7 Class K | Series 2009-RR1 Class JPA | |||||||
5.245% due 10/15/36 (Þ) | 428 | 430 | 6.068% due 09/17/39 (Þ) | 343 | 343 | |||
Series 2005-C3 Class D | Series 2010-RR3 Class MSCA | |||||||
4.954% due 07/15/40 | 384 | 396 | 5.944% due 06/16/49 (Þ) | 85 | 85 | |||
Series 2005-C7 Class F | Series 2010-RR4 Class CMLA | |||||||
5.350% due 11/15/40 | 510 | 520 | 6.296% due 12/16/49 (Þ) | 219 | 219 | |||
Mastr Adjustable Rate Mortgages Trust | RBSSP Resecuritization Trust | |||||||
Series 2005-1 Class B1 | Series 2010-3 Class 9A1 | |||||||
Interest Only STRIP | 5.500% due 02/26/35 (Þ) | 92 | 92 | |||||
3.161% due 03/25/35 (Ê) | 145 | 45 | Series 2010-12 Class 7A3 | |||||
Mastr Reperforming Loan Trust | 4.000% due 12/27/35 (Þ) | 215 | 214 | |||||
Series 2005-1 Class 1A3 | Reperforming Loan REMIC Trust |
See accompanying notes which are an integral part of the financial statements.
472 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Series 2005-R2 Class 2A4 | |||||||
8.500% due 06/25/35 (Þ) | 47 | 49 | |||||
Structured Asset Securities Corp. | Common Stocks - 0.0% | ||||||
Mortgage Pass-Through Certificates | Health Care - 0.0% | ||||||
Series 2003-34A Class 6A | Millennium Health LLC(Æ) | 14,856 | 17 | ||||
3.605% due 11/25/33 (Ê) | 156 | 154 | Total Common Stocks | ||||
UBS-Barclays Commercial Mortgage | (cost $108) | 17 | |||||
Trust | |||||||
Series 2013-C6 Class A2 | |||||||
2.066% due 04/10/46 | 720 | 720 | Short-Term Investments - 18.1% | ||||
Wachovia Bank Commercial Mortgage | |||||||
Trust | Air Lease Corp. | ||||||
Series 2006-C23 Class G | 2.125% due 01/15/18 | 805 | 806 | ||||
5.594% due 01/15/45 (Þ) | 1,365 | 1,341 | American Honda Finance Corp. | ||||
Series 2006-C26 Class AM | 1.500% due 03/13/18 | 725 | 726 | ||||
6.073% due 06/15/45 | 1,000 | 1,010 | American Tower Trust I | ||||
Series 2007-C31 Class AM | Series 2013-13 Class 1A | ||||||
5.591% due 04/15/47 | 67 | 67 | |||||
Series 2007-C32 Class A1A | 1.551% due 03/15/18 (Þ) | 1,165 | 1,163 | ||||
5.707% due 06/15/49 | 117 | 117 | Anheuser-Busch InBev Worldwide, Inc. | ||||
Series 2007-C33 Class A4 | 1.574% due 01/10/18 (Þ)(~) | 6,050 | 5,991 | ||||
5.966% due 02/15/51 | 28 | 28 | Assurant, Inc. | ||||
Washington Mutual Mortgage Pass- | 2.500% due 03/15/18 | 1,025 | 1,031 | ||||
Through Certificates Trust | |||||||
Series 2003-AR7 Class A7 | Avaya, Inc. 1st Lien Term Loan B4 | ||||||
2.676% due 08/25/33 (Ê) | 52 | 52 | 8.500% due 01/23/18 (Ê) | 219 | 224 | ||
Wells Fargo Commercial Mortgage Trust | Bank of America Corp. | ||||||
Series 2015-C27 Class A1 | 2.000% due 01/11/18 | 800 | 802 | ||||
1.730% due 02/15/48 | 1,400 | 1,400 | 2.226% due 03/22/18 (Ê) | 4,570 | 4,603 | ||
Series 2015-C31 Class A1 | |||||||
1.679% due 11/15/48 | 906 | 904 | Berkshire Hathaway Finance Corp. | ||||
Series 2016-C34 Class A1 | 1.450% due 03/07/18 | 935 | 936 | ||||
1.423% due 06/15/49 | 555 | 550 | British Telecommunications PLC | ||||
Wells Fargo Mortgage Backed Securities | 5.950% due 01/15/18 | 545 | 561 | ||||
Trust | Canadian Imperial Bank of Commerce | ||||||
Series 2005-AR2 Class 2A1 | |||||||
3.162% due 03/25/35 (Ê) | 97 | 96 | 1.550% due 01/23/18 | 1,499 | 1,501 | ||
WFRBS Commercial Mortgage Trust | Cargill, Inc. | ||||||
Series 2012-C9 Class A1 | 6.000% due 11/27/17 (Þ) | 2,460 | 2,523 | ||||
0.673% due 11/15/45 | 32 | 32 | Citigroup, Inc. | ||||
Series 2013-C14 Class A1 | 1.800% due 02/05/18 | 900 | 901 | ||||
0.836% due 06/15/46 | 54 | 54 | Collateralized Commercial Paper Co. | ||||
Series 2013-UBS1 Class A2 | LLC | ||||||
2.927% due 03/15/46 | 530 | 538 | 1.607% due 09/19/17 (~) | 1,625 | 1,616 | ||
139,310 | Compass Bank | ||||||
United States Government Treasuries - 9.0% | Series BKNT | ||||||
United States Treasury Notes | 6.400% due 10/01/17 | 1,170 | 1,191 | ||||
1.250% due 03/31/19 | 2,945 | 2,945 | |||||
1.250% due 04/30/19 | 26,550 | 26,538 | Cooperatieve Rabobank UA | ||||
1.625% due 04/30/19 | 2,700 | 2,719 | Series YCD | ||||
1.375% due 12/15/19 | 15,470 | 15,465 | 1.328% due 06/22/17 (ç)(Ê)(~) | 4,950 | 4,950 | ||
1.375% due 02/15/20 | 3,850 | 3,846 | Credit Suisse AG | ||||
1.500% due 04/15/20 | 19,470 | 19,499 | Series GMTN | ||||
1.875% due 03/31/22 | 3,185 | 3,194 | 1.375% due 05/26/17 | 905 | 905 | ||
74,206 | Danske Corp. | ||||||
Total Long-Term Investments | 0.010% due 02/16/18 (Þ)(~) | 2,195 | 2,165 | ||||
(cost $700,397) | 699,347 | DCP Midstream Operating, LP |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 473
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
2.500% due 12/01/17 | 1,680 | 1,682 | International Business Machines Corp. | ||||||
eBay, Inc. | 5.700% due 09/14/17 | 560 | 569 | ||||||
2.500% due 03/09/18 | 1,445 | 1,456 | International Lease Finance Corp. | ||||||
Enterprise Fleet Financing LLC | 3.875% due 04/15/18 | 800 | 815 | ||||||
Series 2016-2 Class A1 | Noble Holding International, Ltd. | ||||||||
0.850% due 07/20/17 (Þ) | 154 | 154 | 5.750% due 03/16/18 | 595 | 602 | ||||
Fannie Mae | Pricoa Global Funding I | ||||||||
7.000% due 06/01/17 | — | — | 1.350% due 08/18/17 (Þ) | 940 | 940 | ||||
3.860% due 03/01/18 | 1,148 | 1,159 | Sheffield Receivables Corp. | ||||||
5.000% due 03/01/18 | 1,106 | 1,135 | 1.000% due 09/21/17 (Þ)(~)(v) | 4,480 | 4,451 | ||||
Fannie Mae REMICS | Sky PLC | ||||||||
Series 2002-57 Class PG | 6.100% due 02/15/18 (Þ) | 865 | 894 | ||||||
5.500% due 09/25/17 | 5 | 5 | Total Capital Canada, Ltd. | ||||||
Fannie Mae-Aces | 1.450% due 01/15/18 | 975 | 975 | ||||||
Series 2012-M9 Class ASQ2 | Toyota Motor Credit Corp. | ||||||||
1.513% due 12/25/17 | 2,453 | 2,453 | 1.200% due 04/06/18 | 1,010 | 1,009 | ||||
Series 2013-M7 Class ASQ2 | Tyco Electronics Group SA | ||||||||
1.233% due 03/26/18 | 132 | 132 | 6.550% due 10/01/17 | 1,090 | 1,112 | ||||
Series 2015-M1 Class ASQ2 | Toronto-Dominion Bank (The) | ||||||||
1.626% due 02/25/18 | 2,164 | 2,165 | 1.400% due 04/30/18 | 970 | 969 | ||||
Series 2015-M7 Class ASQ2 | U.S. Cash Management Fund | 74,240,934 | (8) | 74,257 | |||||
1.550% due 04/25/18 | 822 | 821 | UBS AG | ||||||
Federal Home Loan Mortgage Corp. | 1.570% due 09/08/17 (~) | 310 | 310 | ||||||
Multifamily Structured Pass-Through | Series BKNT | ||||||||
Certificates | 5.875% due 12/20/17 | 820 | 842 | ||||||
Series 2013-K502 Class A2 | United States Treasury Bills | ||||||||
1.426% due 08/25/17 | 245 | 245 | 0.480% due 05/25/17 | 2,200 | 2,200 | ||||
Freddie Mac | Vodafone Group PLC | ||||||||
6.000% due 03/01/18 | — | — | 1.250% due 09/26/17 | 5,922 | 5,918 | ||||
Freddie Mac Multifamily Structured | |||||||||
Pass-Through Certificates | Total Short-Term Investments | ||||||||
Series 2011-K702 Class X1 | (cost $149,225) | 149,312 | |||||||
Interest Only STRIP | |||||||||
1.451% due 02/25/18 | 26,610 | 206 | Total Investments 103.1% | ||||||
General Electric Capital Corp. | (identified cost $849,730) | 848,676 | |||||||
1.625% due 04/02/18 | 995 | 998 | |||||||
General Mills, Inc. | Other Assets and Liabilities, | ||||||||
1.400% due 10/20/17 | 1,495 | 1,496 | Net - (3.1%) | (25,434 | ) | ||||
General Motors Financial Co., Inc. | Net Assets - 100.0% | 823,242 | |||||||
2.400% due 04/10/18 | 530 | 533 | |||||||
Harris Corp. | |||||||||
1.999% due 04/27/18 | 675 | 677 | |||||||
Hewlett Packard Enterprise Co. | |||||||||
Series WI | |||||||||
Zero coupon due 10/05/17 | 442 | 443 | |||||||
HSBC USA, Inc. | |||||||||
1.481% due 12/15/17 (Ê)(Þ)(~) | 4,405 | 4,414 | |||||||
Huntington Auto Trust | |||||||||
Series 2016-1 Class A1 | |||||||||
0.850% due 12/15/17 | 681 | 680 |
See accompanying notes which are an integral part of the financial statements.
474 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||||||
Securities | Date | or shares | $ | $ | $ | |||||||||||
0.0% | ||||||||||||||||
Fannie Mae REMICS | 08/17/07 | 44,959 | 99.18 | 45 | 44 | |||||||||||
44 | ||||||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. | ||||||||||||||||
Futures Contracts | ||||||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | |||||||||||||
Contracts | Amount | Date | $ | |||||||||||||
Long Positions | ||||||||||||||||
Australia 10 Year Government Bond Futures | 316 | AUD | 40,991 | 06/17 | 813 | |||||||||||
United States 2 Year Treasury Note Futures | 813 | USD | 176,103 | 06/17 | 285 | |||||||||||
United States 10 Year Treasury Note Futures | 519 | USD | 65,248 | 06/17 | 403 | |||||||||||
Short Positions | ||||||||||||||||
Canada 10 Year Government Bond Futures | 213 | CAD | 29,726 | 06/17 | (224 | ) | ||||||||||
Euro-Bund Futures | 158 | EUR | 25,561 | 06/17 | (129 | ) | ||||||||||
Long Gilt Futures | 166 | GBP | 21,293 | 06/17 | (445 | ) | ||||||||||
United States 5 Year Treasury Note Futures | 232 | USD | 27,470 | 06/17 | (213 | ) | ||||||||||
United States 10 Year Treasury Note Futures | 42 | USD | 5,280 | 06/17 | (69 | ) | ||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 421 | |||||||||||||||
Foreign Currency Exchange Contracts | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Amount | Amount | (Depreciation) | ||||||||||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||||||||||
Bank of Montreal | USD | 4,438 | CAD | 6,067 | 05/15/17 | 7 | ||||||||||
Bank of Montreal | CHF | 8,982 | USD | 8,985 | 05/15/17 | (48 | ) | |||||||||
Commonwealth Bank of Australia | USD | 4,476 | AUD | 5,881 | 05/15/17 | (73 | ) | |||||||||
Commonwealth Bank of Australia | NOK | 38,431 | USD | 4,484 | 05/15/17 | 7 | ||||||||||
Royal Bank of Canada | USD | 8,975 | NZD | 12,827 | 05/15/17 | (171 | ) | |||||||||
Royal Bank of Canada | NZD | 6,325 | USD | 4,341 | 05/15/17 | — | ||||||||||
State Street | USD | 81 | AUD | 108 | 05/15/17 | — | ||||||||||
State Street | USD | 80 | CHF | 80 | 05/15/17 | — | ||||||||||
State Street | USD | 82 | EUR | 76 | 05/15/17 | — | ||||||||||
State Street | USD | 78 | SEK | 688 | 05/15/17 | — | ||||||||||
State Street | EUR | 4,190 | USD | 4,475 | 05/15/17 | (91 | ) | |||||||||
State Street | NOK | 17 | USD | 2 | 05/15/17 | — | ||||||||||
State Street | SEK | 40,032 | USD | 4,496 | 05/15/17 | (27 | ) | |||||||||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (396 | ) |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 475
Russell Investment Company
Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Long-Term Investments | ||||||||||||||||||
Asset-Backed Securities | $ | — | $ | 67,873 | $ | 1,964 | $ | — | $ | 69,837 | 8.5 | |||||||
Corporate Bonds and Notes | — | 248,498 | — | — | 248,498 | 30.2 | ||||||||||||
International Debt | — | 65,101 | — | — | 65,101 | 8.0 | ||||||||||||
Loan Agreements | — | 102,395 | — | — | 102,395 | 12.5 | ||||||||||||
Mortgage-Backed Securities | — | 137,846 | 1,464 | — | 139,310 | 16.9 | ||||||||||||
United States Government Treasuries | — | 74,206 | — | — | 74,206 | 9.0 | ||||||||||||
Common Stocks | ||||||||||||||||||
Health Care | — | 17 | — | 17 | —* | |||||||||||||
Short-Term Investments | — | 75,055 | — | 74,257 | 149,312 | 18.0 | ||||||||||||
Total Investments | — | 770,991 | 3,428 | 74,257 | 848,676 | 103.1 | ||||||||||||
Other Assets and Liabilities, Net | (3.1 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 1,501 | — | — | — | 1,501 | 0.2 | ||||||||||||
Foreign Currency Exchange Contracts | — | 14 | — | — | 14 | —* | ||||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (1,080 | ) | — | — | — | (1,080 | ) | (0.1 | ) | |||||||||
Foreign Currency Exchange Contracts | — | (410 | ) | — | — | (410 | ) | (—)* | ||||||||||
Total Other Financial Instruments** | $ | 421 | $ | (396 | ) | $ | — | $ | — | $ | 25 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
476 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||||||
Currency | Interest Rate | |||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||||||
Location: Statement of Assets and Liabilities - Assets | ||||||||||
Unrealized appreciation on foreign currency exchange contracts | $ | 14 | $ | — | ||||||
Variation margin on futures contracts* | — | 1,501 | ||||||||
Total | $ | 14 | $ | 1,501 | ||||||
Location: Statement of Assets and Liabilities - Liabilities | ||||||||||
Variation margin on futures contracts* | $ | — | $ | 1,080 | ||||||
Unrealized depreciation on foreign currency exchange contracts | 410 | — | ||||||||
Total | $ | 410 | $ | (1,080 | ) | |||||
Foreign | ||||||||||
Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||||
Location: Statement of Operations - Net realized gain (loss) | ||||||||||
Futures contracts | $ | — | $ | — | $ | (1,429 | ) | |||
Credit default swap contracts | 164 | — | — | |||||||
Foreign currency-related transactions** | — | 114 | — | |||||||
Total | $ | 166 | $ | 114 | $ | (1,429 | ) | |||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||||||
Futures contracts | $ | — | $ | — | $ | (193 | ) | |||
Credit default swap contracts | (46 | ) | — | — | ||||||
Foreign currency-related transactions*** | — | (756 | ) | — | ||||||
Total | $ | (48 | ) | $ | (756 | ) | $ | (193 | ) |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 477
Russell Investment Company
Short Duration Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Assets | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | $ | 14 | $ | — $ | 14 | ||||
Futures Contracts | Variation margin on futures contracts | 191 | — | 191 | ||||||
Total Financial and Derivative Assets | 205 | — | 205 | |||||||
Financial and Derivative Assets not subject to a netting agreement | (191 | ) | — | (191 | ) | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 14 | $ | — $ | 14 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of Montreal | $ | 7 | $ | 7 | $ | — | $ — | ||
Commonwealth Bank of Australia | 7 | 7 | — | — | |||||
Total | $ | 14 | $ | 14 | $ | — | $ — |
See accompanying notes which are an integral part of the financial statements.
478 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 104 | $ | — $ | 104 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 410 | — | 410 | |||||
Total Financial and Derivative Liabilities | 514 | — | 514 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (103 | ) | — | (103 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 411 | $ | — $ | 411 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of Montreal | $ | 49 | $ | 7 | $ | — | $ 42 | ||
Commonwealth Bank of Australia | 73 | 7 | — | 66 | |||||
Royal Bank of Canada | 171 | — | — | 171 | |||||
State Street | 118 | — | — | 118 | |||||
Total | $ | 411 | $ | 14 | $ | — | $ 397 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 479
Russell Investment Company
Short Duration Bond Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 849,730 |
Investments, at fair value(>) | 848,676 | |
Cash | 12 | |
Cash (restricted)(a) | 3,249 | |
Unrealized appreciation on foreign currency exchange contracts | 14 | |
Receivables: | ||
Dividends and interest | 3,192 | |
Dividends from affiliated funds | 39 | |
Investments sold | 20,290 | |
Fund shares sold | 689 | |
Variation margin on futures contracts | 191 | |
Prepaid expenses | 9 | |
Total assets | 876,361 | |
Liabilities | ||
Payables: | ||
Investments purchased | 51,271 | |
Fund shares redeemed | 618 | |
Accrued fees to affiliates | 368 | |
Other accrued expenses | 257 | |
Variation margin on futures contracts | 104 | |
Unfunded loan commitment | 91 | |
Unrealized depreciation on foreign currency exchange contracts | 410 | |
Total liabilities | 53,119 | |
Commitments and Contingencies (1) | ||
Net Assets | $ | 823,242 |
(1) See note 9 in the Notes to Financial Statements for a detailed description of commitments and contingencies. |
See accompanying notes which are an integral part of the financial statements.
480 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 1,362 | |
Accumulated net realized gain (loss) | (4,853 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | (1,054 | ) | |
Futures contracts | 421 | ||
Foreign currency-related transactions | (396 | ) | |
Shares of beneficial interest | 430 | ||
Additional paid-in capital | 827,332 | ||
Net Assets | $ | 823,242 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 19.15 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 19.90 | |
Class A — Net assets | $ | 18,895,794 | |
Class A — Shares outstanding ($.01 par value) | 986,552 | ||
Net asset value per share: Class C(#) | $ | 18.99 | |
Class C — Net assets | $ | 41,711,261 | |
Class C — Shares outstanding ($.01 par value) | 2,196,044 | ||
Net asset value per share: Class E(#) | $ | 19.21 | |
Class E — Net assets | $ | 2,034,163 | |
Class E — Shares outstanding ($.01 par value) | 105,882 | ||
Net asset value per share: Class R6(#) | $ | 19.20 | |
Class R6 — Net assets | $ | 105,934 | |
Class R6 — Shares outstanding ($.01 par value) | 5,518 | ||
Net asset value per share: Class S(#) | $ | 19.17 | |
Class S — Net assets | $ | 565,306,739 | |
Class S — Shares outstanding ($.01 par value) | 29,494,621 | ||
Net asset value per share: Class T(#) | $ | 19.17 | |
Class T — Net assets | $ | 1,052,722 | |
Class T — Shares outstanding ($.01 par value) | 54,905 | ||
Net asset value per share: Class Y(#) | $ | 19.17 | |
Class Y — Net assets | $ | 194,135,030 | |
Class Y — Shares outstanding ($.01 par value) | 10,125,305 | ||
Amounts in thousands | |||
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 74,257 | |
(a) Cash Collateral for Futures | $ | 3,249 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 481
Russell Investment Company
Short Duration Bond Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends from affiliated funds | $ | 194 | |
Interest | 7,908 | ||
Total investment income | 8,102 | ||
Expenses | |||
Advisory fees | 1,862 | ||
Administrative fees | 200 | ||
Custodian fees | 141 | ||
Distribution fees - Class A | 27 | ||
Distribution fees - Class C | 170 | ||
Transfer agent fees - Class A | 22 | ||
Transfer agent fees - Class C | 45 | ||
Transfer agent fees - Class E | 8 | ||
Transfer agent fees - Class R6 | —* | ||
Transfer agent fees - Class S | 569 | ||
Transfer agent fees - Class T | —* | ||
Transfer agent fees - Class Y | 4 | ||
Professional fees | 69 | ||
Registration fees | 62 | ||
Shareholder servicing fees - Class C | 56 | ||
Shareholder servicing fees - Class E | 10 | ||
Trustees’ fees | 14 | ||
Printing fees | 27 | ||
Miscellaneous | 9 | ||
Expenses before reductions | 3,295 | ||
Expense reductions | (726 | ) | |
Net expenses | 2,569 | ||
Net investment income (loss) | 5,533 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | (1,640 | ) | |
Futures contracts | (1,429 | ) | |
Credit default swap contracts | 164 | ||
Foreign currency-related transactions | 115 | ||
Net realized gain (loss) | (2,790 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 775 | ||
Futures contracts | (193 | ) | |
Credit default swap contracts | (46 | ) | |
Foreign currency-related transactions | (756 | ) | |
Net change in unrealized appreciation (depreciation) | (220 | ) | |
Net realized and unrealized gain (loss) | (3,010 | ) | |
Net Increase (Decrease) in Net Assets from Operations | $ | 2,523 | |
* Less than $500. |
See accompanying notes which are an integral part of the financial statements.
482 Short Duration Bond Fund
Russell Investment Company
Short Duration Bond Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 5,533 | $ | 12,795 | ||
Net realized gain (loss) | (2,790 | ) | (946 | ) | ||
Net change in unrealized appreciation (depreciation) | (220 | ) | 6,693 | |||
Net increase (decrease) in net assets from operations | 2,523 | 18,542 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (159 | ) | (315 | ) | ||
Class C | (168 | ) | (273 | ) | ||
Class E | (76 | ) | (283 | ) | ||
Class R6 | (1 | ) | (1 | ) | ||
Class S | (4,817 | ) | (8,455 | ) | ||
Class T | (—)** | — | ||||
Class Y | (1,531 | ) | (2,335 | ) | ||
From net realized gain | ||||||
Class A | — | (15 | ) | |||
Class C | — | (32 | ) | |||
Class E | — | (15 | ) | |||
Class S | — | (339 | ) | |||
Class Y | — | (91 | ) | |||
Net decrease in net assets from distributions | (6,752 | ) | (12,154 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 17,982 | 76,694 | ||||
Total Net Increase (Decrease) in Net Assets | 13,753 | (70,306 | ) | |||
Net Assets | ||||||
Beginning of period | 809,489 | 879,795 | ||||
End of period | $ | 823,242 | $ | 809,489 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 1,362 | $ | 2,581 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 483
Russell Investment Company
Short Duration Bond Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 348 | $ | 6,638 | 359 | $ | 6,831 | ||||||
Proceeds from reinvestment of distributions | 8 | 147 | 16 | 305 | ||||||||
Payments for shares redeemed | (465 | ) | (8,879 | ) | (584 | ) | (11,194 | ) | ||||
Net increase (decrease) | (109 | ) | (2,094 | ) | (209 | ) | (4,058 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 134 | 2,539 | 560 | 10,629 | ||||||||
Proceeds from reinvestment of distributions | 9 | 166 | 16 | 298 | ||||||||
Payments for shares redeemed | (511 | ) | (9,685 | ) | (997 | ) | (18,887 | ) | ||||
Net increase (decrease) | (368 | ) | (6,980 | ) | (421 | ) | (7,960 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 25 | 474 | 460 | 8,855 | ||||||||
Proceeds from reinvestment of distributions | 4 | 72 | 15 | 282 | ||||||||
Payments for shares redeemed | (741 | ) | (14,181 | ) | (1,049 | ) | (20,186 | ) | ||||
Net increase (decrease) | (712 | ) | (13,635 | ) | (574 | ) | (11,049 | ) | ||||
Class R6 | ||||||||||||
Proceeds from shares sold | —** | —*** | 5 | 103 | ||||||||
Proceeds from reinvestment of distributions | —** | 1 | — | 1 | ||||||||
Payments for shares redeemed | (—)** | (—)*** | — | — | ||||||||
Net increase (decrease) | —** | 1 | 5 | 104 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 5,612 | 107,305 | 11,727 | 224,721 | ||||||||
Proceeds from reinvestment of distributions | 250 | 4,780 | 455 | 8,699 | ||||||||
Payments for shares redeemed | (6,642 | ) | (127,038 | ) | (13,880 | ) | (265,132 | ) | ||||
Net increase (decrease) | (780 | ) | (14,953 | ) | (1,698 | ) | (31,712 | ) | ||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 55 | 1,052 | — | — | ||||||||
Payments for shares redeemed | (—)** | (—)*** | — | — | ||||||||
Net increase (decrease) | 55 | 1,052 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 3,405 | 65,100 | 519 | 9,865 | ||||||||
Proceeds from reinvestment of distributions | 80 | 1,531 | 127 | 2,427 | ||||||||
Payments for shares redeemed | (629 | ) | (12,040 | ) | (1,798 | ) | (34,311 | ) | ||||
Net increase (decrease) | 2,856 | 54,591 | (1,152 | ) | (22,019 | ) | ||||||
Total increase (decrease) | 942 | $ | 17,982 | (4,049 | ) | $ | (76,694 | ) |
** Less than 500 shares.
*** Less than $500.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
484 Short Duration Bond Fund
(This page intentionally left blank)
Russell Investment Company
Short Duration Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 19.26 | .11 | (.08 | ) | .03 | (.14 | ) | — | ||||||||
October 31, 2016 | 19.09 | .26 | .16 | .42 | (.24 | ) | (.01 | ) | ||||||||
October 31, 2015 | 19.35 | .22 | (.14 | ) | .08 | (.22 | ) | (.12 | ) | |||||||
October 31, 2014 | 19.35 | .22 | (.01 | ) | .21 | (.18 | ) | (.03 | ) | |||||||
October 31, 2013 | 19.70 | .19 | (.11 | ) | .08 | (.23 | ) | (.20 | ) | |||||||
October 31, 2012 | 19.15 | .26 | .57 | .83 | (.28 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 19.10 | .04 | (.08 | ) | (.04 | ) | (.07 | ) | — | |||||||
October 31, 2016 | 18.94 | .12 | .15 | .27 | (.10 | ) | (.01 | ) | ||||||||
October 31, 2015 | 19.21 | .08 | (.15 | ) | (.07 | ) | (.08 | ) | (.12 | ) | ||||||
October 31, 2014 | 19.23 | .08 | (.02 | ) | .06 | (.05 | ) | (.03 | ) | |||||||
October 31, 2013 | 19.59 | .05 | (.11 | ) | (.06 | ) | (.10 | ) | (.20 | ) | ||||||
October 31, 2012 | 19.06 | .11 | .57 | .68 | (.15 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 19.30 | .10 | (.07 | ) | .03 | (.12 | ) | — | ||||||||
October 31, 2016 | 19.13 | .27 | .15 | .42 | (.24 | ) | (.01 | ) | ||||||||
October 31, 2015 | 19.38 | .22 | (.13 | ) | .09 | (.22 | ) | (.12 | ) | |||||||
October 31, 2014 | 19.38 | .22 | (.01 | ) | .21 | (.18 | ) | (.03 | ) | |||||||
October 31, 2013 | 19.73 | .17 | (.08 | ) | .09 | (.24 | ) | (.20 | ) | |||||||
October 31, 2012 | 19.18 | .26 | .57 | .83 | (.28 | ) | — | |||||||||
Class R6 | ||||||||||||||||
April 30, 2017* | 19.30 | .14 | (.07 | ) | .07 | (.17 | ) | — | ||||||||
October 31, 2016(8) | 18.97 | .21 | .30 | .51 | (.18 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 19.27 | .13 | (.07 | ) | .06 | (.16 | ) | — | ||||||||
October 31, 2016 | 19.10 | .31 | .16 | .47 | (.29 | ) | (.01 | ) | ||||||||
October 31, 2015 | 19.36 | .27 | (.14 | ) | .13 | (.27 | ) | (.12 | ) | |||||||
October 31, 2014 | 19.36 | .27 | (.01 | ) | .26 | (.23 | ) | (.03 | ) | |||||||
October 31, 2013 | 19.71 | .24 | (.11 | ) | .13 | (.28 | ) | (.20 | ) | |||||||
October 31, 2012 | 19.15 | .30 | .58 | .88 | (.32 | ) | — | |||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 19.11 | .04 | .03 | .07 | (.01 | ) | — | |||||||||
Class Y | ||||||||||||||||
April 30, 2017* | 19.28 | .14 | (.08 | ) | .06 | (.17 | ) | — | ||||||||
October 31, 2016 | 19.11 | .33 | .15 | .48 | (.30 | ) | (.01 | ) | ||||||||
October 31, 2015 | 19.37 | .28 | (.14 | ) | .14 | (.28 | ) | (.12 | ) | |||||||
October 31, 2014 | 19.36 | .29 | (.01 | ) | .28 | (.24 | ) | (.03 | ) | |||||||
October 31, 2013 | 19.71 | .26 | (.11 | ) | .15 | (.30 | ) | (.20 | ) | |||||||
October 31, 2012 | 19.15 | .33 | .57 | .90 | (.34 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
486 Short Duration Bond Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e)(l) | Net(d)(e)(l) | Net Assets(d)(e) | Turnover Rate(b) | |||||||||
(.14 | ) | 19.15 | .14 | 18,896 | 1.03 | .83 | 1.14 | 91 | |||||||||
(.25 | ) | 19.26 | 2.21 | 21,102 | 1.02 | .81 | 1.39 | 113 | |||||||||
(.34 | ) | 19.09 | .42 | 24,914 | 1.01 | .82 | 1.15 | 183 | |||||||||
(.21 | ) | 19.35 | 1.04 | 29,639 | 1.01 | .85 | 1.14 | 220 | |||||||||
(.43 | ) | 19.35 | .42 | 36,961 | 1.00 | .87 | .99 | 180 | |||||||||
(.28 | ) | 19.70 | 4.37 | 37,994 | 1.00 | .86 | 1.33 | 245 | |||||||||
(.07 | ) | 18.99 | (.22 | ) | 41,711 | 1.78 | 1.58 | .39 | 91 | ||||||||
(.11 | ) | 19.10 | 1.44 | 48,970 | 1.77 | 1.56 | .63 | 113 | |||||||||
(.20 | ) | 18.94 | (.34 | ) | 56,538 | 1.76 | 1.57 | .40 | 183 | ||||||||
(.08 | ) | 19.21 | .28 | 82,676 | 1.76 | 1.60 | .39 | 220 | |||||||||
(.30 | ) | 19.23 | (.32 | ) | 120,088 | 1.75 | 1.62 | .24 | 180 | ||||||||
(.15 | ) | 19.59 | 3.59 | 132,292 | 1.75 | 1.61 | .56 | 245 | |||||||||
(.12 | ) | 19.21 | .15 | 2,034 | 1.02 | .82 | 1.07 | 91 | |||||||||
(.25 | ) | 19.30 | 2.20 | 15,786 | 1.02 | .81 | 1.39 | 113 | |||||||||
(.34 | ) | 19.13 | .47 | 26,633 | 1.01 | .82 | 1.15 | 183 | |||||||||
(.21 | ) | 19.38 | 1.08 | 36,083 | 1.01 | .85 | 1.15 | 220 | |||||||||
(.44 | ) | 19.38 | .42 | 41,281 | 1.00 | .87 | .93 | 180 | |||||||||
(.28 | ) | 19.73 | 4.36 | 20,230 | 1.00 | .86 | 1.33 | 245 | |||||||||
(.17 | ) | 19.20 | .34 | 106 | .63 | .53 | 1.44 | 91 | |||||||||
(.18 | ) | 19.30 | 2.70 | 106 | .61 | .51 | 1.66 | 113 | |||||||||
(.16 | ) | 19.17 | .32 | 565,307 | .78 | .58 | 1.39 | 91 | |||||||||
(.30 | ) | 19.27 | 2.47 | 583,387 | .77 | .56 | 1.63 | 113 | |||||||||
(.39 | ) | 19.10 | .67 | 610,784 | .76 | .57 | 1.40 | 183 | |||||||||
(.26 | ) | 19.36 | 1.30 | 771,202 | .76 | .60 | 1.40 | 220 | |||||||||
(.48 | ) | 19.36 | .67 | 865,268 | .75 | .62 | 1.23 | 180 | |||||||||
(.32 | ) | 19.71 | 4.66 | 801,758 | .75 | .62 | 1.56 | 245 | |||||||||
(.01 | ) | 19.17 | .39 | 1,053 | .79 | .53 | 1.72 | 91 | |||||||||
(.17 | ) | 19.17 | .30 | 194,135 | .58 | .50 | 1.46 | 91 | |||||||||
(.31 | ) | 19.28 | 2.54 | 140,138 | .57 | .48 | 1.71 | 113 | |||||||||
(.40 | ) | 19.11 | .75 | 160,926 | .56 | .49 | 1.46 | 183 | |||||||||
(.27 | ) | 19.37 | 1.41 | 263,932 | .56 | .51 | 1.49 | 220 | |||||||||
(.50 | ) | 19.36 | .78 | 256,684 | .56 | .51 | 1.36 | 180 | |||||||||
(.34 | ) | 19.71 | 4.75 | 266,289 | .56 | .51 | 1.70 | 245 |
See accompanying notes which are an integral part of the financial statements.
Short Duration Bond Fund 487
Russell Investment Company
Short Duration Bond Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 250,496 |
Administration fees | 32,848 | |
Distribution fees | 30,244 | |
Shareholder servicing fees | 9,202 | |
Transfer agent fees | 42,302 | |
Trustee fees | 3,031 | |
$ | 368,123 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Management Fund | $ | 36,219 | $ | 434,507 | $ | 396,467 | $ | — | $ (2) | $ | 74,257 | $ | 194 | $ | — | ||
$ | 36,219 | $ | 434,507 | $ | 396,467 | $ | — | $ (2) | $ | 74,257 | $ | 194 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 849,900,743 | |||
Unrealized Appreciation | $ | 3,034,975 | |||
Unrealized Depreciation | (4,259,466 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | (1,224,491 | ) |
See accompanying notes which are an integral part of the financial statements.
488 Short Duration Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 990.10 | $ | 1,020.38 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 4.39 | $ | 4.46 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.89% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 986.80 | $ | 1,016.66 | |
Expenses Paid During Period* | $ | 8.08 | $ | 8.20 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.64% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 990.20 | $ | 1,020.43 | |
of other funds. | Expenses Paid During Period* | $ | 4.34 | $ | 4.41 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.88% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Tax-Exempt High Yield Bond Fund 489
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 991.40 | $ | 1,021.62 | ||
Expenses Paid During Period* | $ | 3.16 | $ | 3.21 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.64% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,017.10 | $ | 1,022.12 | ||
Expenses Paid During Period* | $ | 0.67 | $ | 2.71 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.54% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
0.54% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). |
490 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Municipal Bonds - 97.5% | ||||||||
Alabama - 1.5% | ||||||||
Alabama Industrial Development Authority Revenue Bonds | 500 | 6.450 | 12/01/23 | 501 | ||||
County of Jefferson Alabama General Obligation Limited(µ) | 425 | 5.000 | 04/01/23 | 426 | ||||
County of Jefferson Alabama General Obligation Unlimited(µ) | 1,590 | 5.000 | 04/01/20 | 1,592 | ||||
County of Jefferson Alabama Revenue Bonds | 150 | 4.750 | 01/01/25 | 150 | ||||
County of Jefferson Alabama Sewer Revenue Bonds | 1,220 | 7.000 | 10/01/51 | 1,479 | ||||
County of Jefferson Alabama Sewer Revenue Bonds | 1,065 | 6.500 | 10/01/53 | 1,279 | ||||
Montgomery Educational Building Authority Revenue Bonds | 820 | 5.000 | 10/01/36 | 852 | ||||
6,279 | ||||||||
Alaska - 0.7% | ||||||||
Northern Tobacco Securitization Corp. Revenue Bonds(Ê) | 100 | 0.010 | 06/01/46 | 7 | ||||
Northern Tobacco Securitization Corp. Revenue Bonds | 2,940 | 5.000 | 06/01/46 | 2,818 | ||||
2,825 | ||||||||
Arizona - 0.8% | ||||||||
Arizona Health Facilities Authority Revenue Bonds(Ê) | 1,680 | 1.220 | 01/01/37 | 1,456 | ||||
Industrial Development Authority of the City of Phoenix (The) Revenue Bonds | 800 | 5.000 | 07/01/35 | 833 | ||||
Industrial Development Authority of the County of Pima (The) Revenue Bonds | 250 | 4.500 | 06/01/30 | 266 | ||||
Industrial Development Authority of the County of Pima (The) Revenue Bonds | 800 | 5.125 | 12/01/40 | 837 | ||||
3,392 | ||||||||
California - 12.5% | ||||||||
Alameda Corridor Transportation Authority Revenue Bonds | 150 | 5.000 | 10/01/37 | 167 | ||||
Alhambra Unified School District General Obligation Unlimited(µ) | 1,150 | 4.220 | 08/01/37 | 508 | ||||
Anaheim Community Facilities District Special Tax | 125 | 4.000 | 09/01/46 | 120 | ||||
California County Tobacco Securitization Agency Revenue Bonds | 300 | 5.700 | 06/01/46 | 300 | ||||
California County Tobacco Securitization Agency Revenue Bonds | 4,500 | Zero coupon | 06/01/55 | 249 | ||||
California Health Facilities Financing Authority Revenue Bonds | 1,000 | 5.000 | 02/01/42 | 1,105 | ||||
California Municipal Finance Authority Revenue Bonds | 1,095 | 5.250 | 11/01/29 | 1,259 | ||||
California Municipal Finance Authority Revenue Bonds | 1,500 | 5.000 | 11/01/36 | 1,501 | ||||
California Municipal Finance Authority Revenue Bonds | 1,000 | 4.250 | 02/01/40 | 1,023 | ||||
California Municipal Finance Authority Revenue Bonds | 1,000 | 5.375 | 11/01/40 | 1,019 | ||||
California Municipal Finance Authority Revenue Bonds | 125 | 5.000 | 02/01/47 | 136 | ||||
California Municipal Finance Authority Revenue Bonds | 2,500 | 5.000 | 11/01/47 | 2,673 | ||||
California Municipal Finance Authority Revenue Bonds | 3,700 | 5.000 | 06/01/50 | 3,911 | ||||
California Pollution Control Financing Authority Revenue Bonds | 1,000 | 3.375 | 07/01/25 | 1,032 | ||||
California Pollution Control Financing Authority Revenue Bonds | 2,720 | 5.000 | 11/21/45 | 2,892 | ||||
California School Finance Authority Revenue Bonds | 500 | 5.000 | 08/01/45 | 522 | ||||
California Statewide Communities Development Authority Revenue Bonds | 460 | 5.000 | 05/15/32 | 496 | ||||
California Statewide Communities Development Authority Revenue Bonds | 1,000 | 5.000 | 10/01/43 | 1,053 | ||||
California Statewide Communities Development Authority Revenue Bonds | 1,500 | 5.000 | 12/01/46 | 1,580 | ||||
California Statewide Communities Development Authority Revenue Bonds | 665 | 5.500 | 12/01/54 | 717 | ||||
California Statewide Communities Development Authority Revenue Bonds | 250 | 5.250 | 12/01/56 | 267 | ||||
California Statewide Communities Development Authority Special Tax | 500 | 4.000 | 09/01/19 | 516 | ||||
California Statewide Communities Development Authority Special Tax | 1,085 | 4.000 | 09/01/20 | 1,132 | ||||
California Statewide Communities Development Authority Special Tax | 500 | 4.250 | 09/01/22 | 529 | ||||
California Statewide Financing Authority Revenue Bonds | 20,000 | Zero coupon | 06/01/55 | 1,066 | ||||
City of Long Beach California Marina System Revenue Bonds | 225 | 5.000 | 05/15/40 | 244 | ||||
City of Long Beach California Marina System Revenue Bonds | 1,185 | 5.000 | 05/15/45 | 1,281 | ||||
Foothill-Eastern Transportation Corridor Agency Revenue Bonds | 100 | 6.000 | 01/15/49 | 115 | ||||
Fremont Community Facilities District No. 1 Special Tax | 1,255 | 5.000 | 09/01/26 | 1,387 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 491
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Golden State Tobacco Securitization Corp. General Obligation Unlimited | 150 | 5.000 | 06/01/40 | 168 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds | 1,995 | 5.300 | 06/01/37 | 2,020 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds | 1,395 | 5.000 | 06/01/45 | 1,559 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds | 700 | 5.125 | 06/01/47 | 698 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds | 585 | 5.750 | 06/01/47 | 588 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds | 200 | 8.205 | 06/01/47 | 27 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds | 10,000 | 10.494 | 06/01/47 | 1,102 | ||||
Jurupa Public Financing Authority Special Tax | 1,000 | 5.000 | 09/01/43 | 1,086 | ||||
M-S-R Energy Authority Revenue Bonds | 1,500 | 6.500 | 11/01/39 | 2,084 | ||||
Natomas Unified School District General Obligation Unlimited(µ) | 425 | 4.000 | 08/01/42 | 431 | ||||
Palomar Health Certificate Of Participation | 450 | 6.750 | 11/01/39 | 513 | ||||
Palomar Health Certificate Of Participation | 500 | 6.000 | 11/01/41 | 539 | ||||
Poway Unified School District General Obligation Unlimited | 1,300 | 4.383 | 08/01/40 | 489 | ||||
Rancho Cordova Community Facilities District Special Tax | 125 | 3.000 | 09/01/34 | 113 | ||||
Regents of the University of California Medical Center Pooled Revenue Bonds(µ)(Ê) | 1,000 | 0.924 | 05/15/43 | 836 | ||||
River Islands Public Financing Authority Special Tax | 150 | 5.375 | 09/01/31 | 161 | ||||
River Islands Public Financing Authority Special Tax | 940 | 5.500 | 09/01/45 | 999 | ||||
Riverside County Public Financing Authority Tax Allocation(µ) | 150 | 4.000 | 10/01/40 | 152 | ||||
Riverside County Redevelopment Successor Agency Tax Allocation(µ) | 300 | 4.000 | 10/01/39 | 303 | ||||
Riverside County Redevelopment Successor Agency Tax Allocation(µ) | 125 | 4.000 | 10/01/40 | 125 | ||||
Sacramento County Sanitation Districts Financing Authority Revenue Bonds(µ)(Ê) | 1,515 | 0.719 | 12/01/35 | 1,317 | ||||
San Francisco City & County Redevelopment Agency Tax Allocation | 1,190 | 5.000 | 08/01/35 | 1,369 | ||||
San Jacinto Community Facilities District Special Tax | 280 | 5.000 | 09/01/33 | 300 | ||||
San Jacinto Community Facilities District Special Tax | 335 | 5.000 | 09/01/34 | 357 | ||||
San Joaquin Hills Transportation Corridor Agency Revenue Bonds | 1,000 | 5.000 | 01/15/29 | 1,130 | ||||
San Joaquin Hills Transportation Corridor Agency Revenue Bonds | 380 | 5.250 | 01/15/49 | 407 | ||||
San Joaquin Hills Transportation Corridor Agency Revenue Bonds | 2,875 | 5.000 | 01/15/50 | 3,098 | ||||
Silicon Valley Tobacco Securitization Authority Revenue Bonds | 3,500 | 7.695 | 06/01/56 | 193 | ||||
State of California General Obligation Unlimited | 2,000 | 5.000 | 08/01/46 | 2,267 | ||||
Tobacco Securitization Authority of Northern California Revenue Bonds | 800 | 5.500 | 06/01/45 | 800 | ||||
54,031 | ||||||||
Colorado - 1.7% | ||||||||
City & County of Denver Colorado Certificate Of Participation(Ê) | 135 | 0.630 | 12/01/29 | 135 | ||||
Cornerstar Metropolitan District General Obligation Unlimited | 500 | 5.250 | 12/01/47 | 505 | ||||
Denver Health & Hospital Authority Revenue Bonds(Ê) | 1,000 | 1.289 | 12/01/33 | 877 | ||||
Denver Health & Hospital Authority Revenue Bonds | 1,500 | 5.250 | 12/01/45 | 1,591 | ||||
Dominion Water & Sanitation District Revenue Bonds | 500 | 5.250 | 12/01/27 | 511 | ||||
Dominion Water & Sanitation District Revenue Bonds | 500 | 5.750 | 12/01/36 | 514 | ||||
Eaton Area Park & Recreation District General Obligation Limited | 725 | 5.250 | 12/01/34 | 768 | ||||
Eaton Area Park & Recreation District General Obligation Limited | 525 | 5.500 | 12/01/38 | 562 | ||||
Foothills Metropolitan District Special Assessment | 500 | 6.000 | 12/01/38 | 510 | ||||
Palisade Metropolitan District No. 2 General Obligation Limited | 500 | 5.000 | 12/01/46 | 474 | ||||
Park 70 Metropolitan District General Obligation Unlimited | 1,000 | 5.000 | 12/01/36 | 1,054 | ||||
7,501 | ||||||||
Connecticut - 0.1% | ||||||||
Mohegan Tribal Finance Authority Revenue Bonds | 625 | 7.000 | 02/01/45 | 652 | ||||
Delaware - 0.2% | ||||||||
County of Sussex Delaware Revenue Bonds | 1,000 | 5.000 | 01/01/36 | 1,045 |
See accompanying notes which are an integral part of the financial statements.
492 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
District of Columbia - 0.8% | ||||||||
District of Columbia Revenue Bonds | 145 | 6.250 | 10/01/23 | 154 | ||||
District of Columbia Tobacco Settlement Financing Corp. Revenue Bonds | 4,000 | 7.666 | 06/15/46 | 555 | ||||
Metropolitan Washington Airports Authority Dulles Toll Road Revenue Bonds | 2,475 | 5.000 | 10/01/53 | 2,602 | ||||
3,311 | ||||||||
Florida - 7.2% | ||||||||
Anthem Park Community Development District Special Assessment | 135 | 4.750 | 05/01/36 | 121 | ||||
Avalon Groves Community Development District Special Assessment | 150 | 6.000 | 05/01/48 | 147 | ||||
Avelar Creek Community Development District Special Assessment | 100 | 4.000 | 05/01/36 | 96 | ||||
Bannon Lakes Community Development District Special Assessment | 100 | 5.000 | 11/01/48 | 98 | ||||
Bartram Park Community Development District Special Assessment | 755 | 4.500 | 05/01/25 | 748 | ||||
Bartram Park Community Development District Special Assessment | 495 | 4.250 | 05/01/29 | 502 | ||||
Bartram Park Community Development District Special Assessment | 495 | 4.500 | 05/01/35 | 499 | ||||
Bay Laurel Center Community Development District Special Assessment | 100 | 4.000 | 05/01/37 | 95 | ||||
Charlotte County Industrial Development Authority Revenue Bonds | 250 | 5.500 | 10/01/36 | 240 | ||||
City of Atlantic Beach Florida Revenue Bonds | 1,000 | 5.000 | 11/15/37 | 1,032 | ||||
City of Cape Coral Florida Water & Sewer Revenue Bonds | 1,000 | 4.000 | 10/01/36 | 1,018 | ||||
City of Tampa Florida Revenue Bonds | 960 | 5.000 | 04/01/45 | 1,047 | ||||
Concord Station Community Development District Special Assessment | 275 | 3.625 | 05/01/35 | 250 | ||||
Concord Station Community Development District Special Assessment | 285 | 3.750 | 05/01/46 | 244 | ||||
Concord Station Community Development District Special Assessment | 100 | 4.750 | 05/01/46 | 92 | ||||
Coronado Community Development District Special Assessment | 25 | 4.000 | 05/01/31 | 25 | ||||
Coronado Community Development District Special Assessment | 44 | 4.250 | 05/01/38 | 44 | ||||
County of Osceola Florida Revenue Bonds | 3,700 | 6.000 | 10/01/24 | 2,678 | ||||
Durbin Crossing Community Development District Special Assessment(µ) | 75 | 3.750 | 05/01/34 | 75 | ||||
Durbin Crossing Community Development District Special Assessment(µ) | 125 | 4.000 | 05/01/37 | 126 | ||||
Escambia County Health Facilities Authority Revenue Bonds | 1,000 | 6.000 | 08/15/36 | 1,107 | ||||
Fontainbleau Lakes Community Development District Special Assessment | 45 | 4.000 | 05/01/31 | 45 | ||||
Grand Bay at Doral Community Development District Special Assessment | 75 | 4.750 | 05/01/36 | 74 | ||||
Grand Bay at Doral Community Development District Special Assessment | 75 | 5.000 | 05/01/46 | 74 | ||||
Greater Orlando Aviation Authority Revenue Bonds | 750 | 5.000 | 11/15/36 | 771 | ||||
Hacienda Lakes Community Development District Special Assessment | 100 | 4.625 | 05/01/46 | 93 | ||||
Highlands Community Development District Special Assessment | 200 | 4.250 | 05/01/36 | 195 | ||||
Highlands Meadows II Community Development District Special Assessment | 640 | 5.375 | 11/01/37 | 645 | ||||
Highlands Meadows II Community Development District Special Assessment | 140 | 5.500 | 11/01/47 | 141 | ||||
Lakewood Ranch Stewardship District Special Assessment | 100 | 4.000 | 05/01/21 | 101 | ||||
Lakewood Ranch Stewardship District Special Assessment | 100 | 4.250 | 05/01/26 | 100 | ||||
Lakewood Ranch Stewardship District Special Assessment | 1,000 | 4.875 | 05/01/35 | 1,002 | ||||
Lakewood Ranch Stewardship District Special Assessment | 100 | 5.000 | 05/01/36 | 101 | ||||
Lakewood Ranch Stewardship District Special Assessment | 100 | 5.000 | 05/01/37 | 99 | ||||
Lakewood Ranch Stewardship District Special Assessment | 150 | 5.250 | 05/01/37 | 151 | ||||
Lakewood Ranch Stewardship District Special Assessment | 440 | 5.125 | 05/01/46 | 430 | ||||
Lakewood Ranch Stewardship District Special Assessment | 100 | 5.125 | 05/01/47 | 99 | ||||
Lakewood Ranch Stewardship District Special Assessment | 175 | 5.375 | 05/01/47 | 176 | ||||
Lee County Industrial Development Authority Revenue Bonds | 750 | 5.000 | 11/15/29 | 751 | ||||
Miami Beach Health Facilities Authority Revenue Bonds | 2,250 | 5.000 | 11/15/39 | 2,404 | ||||
Miami Health Facilities Authority Revenue Bonds | 1,750 | 5.125 | 07/01/38 | 1,827 | ||||
Miami World Center Community Development District Special Assessment | 400 | 5.125 | 11/01/39 | 402 | ||||
Miami World Center Community Development District Special Assessment | 1,150 | 5.250 | 11/01/49 | 1,154 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 493
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Mid-Bay Bridge Authority Revenue Bonds | 1,000 | 5.000 | 10/01/40 | 1,080 | ||||
Orchid Grove Community Development District Special Assessment | 970 | 3.625 | 05/01/21 | 960 | ||||
Orchid Grove Community Development District Special Assessment | 1,245 | 5.000 | 05/01/36 | 1,186 | ||||
Palm Glades Community Development District Special Assessment | 350 | 3.750 | 05/01/31 | 348 | ||||
Reunion East Community Development District Special Assessment | 750 | 5.000 | 05/01/25 | 794 | ||||
Reunion East Community Development District Special Assessment | 755 | 5.000 | 05/01/33 | 783 | ||||
Reunion East Community Development District Special Assessment | 200 | 6.600 | 05/01/33 | 204 | ||||
South Kendall Community Development District Special Assessment | 100 | 4.125 | 11/01/40 | 97 | ||||
South-Dade Venture Community Development District Special Assessment | 1,000 | 5.125 | 05/01/33 | 1,039 | ||||
Talis Park Community Development District Special Assessment | 140 | 4.000 | 05/01/33 | 130 | ||||
Tapestry Community Development District Special Assessment | 100 | 5.000 | 05/01/46 | 97 | ||||
Tisons Landing Community Development District Special Assessment | 230 | 3.375 | 05/01/32 | 205 | ||||
Triple Creek Community Development District Special Assessment | 60 | 5.250 | 11/01/27 | 60 | ||||
Triple Creek Community Development District Special Assessment | 80 | 6.125 | 11/01/46 | 78 | ||||
TSR Community Development District Special Assessment | 200 | 4.750 | 11/01/47 | 180 | ||||
Two Creeks Community Development District Special Assessment | 355 | 4.200 | 05/01/26 | 333 | ||||
Two Creeks Community Development District Special Assessment | 100 | 3.500 | 05/01/32 | 94 | ||||
Two Creeks Community Development District Special Assessment | 100 | 3.625 | 05/01/37 | 92 | ||||
Venetian Community Development District Special Assessment | 480 | 5.000 | 05/01/23 | 496 | ||||
Verandah East Community Development District Special Assessment | 200 | 4.000 | 05/01/31 | 186 | ||||
Verano 1 Community Development Distrtict Special Assessment | 250 | 4.750 | 11/01/25 | 244 | ||||
Verano 1 Community Development Distrtict Special Assessment | 250 | 5.125 | 11/01/35 | 239 | ||||
Verano 1 Community Development Distrtict Special Assessment | 250 | 5.250 | 11/01/46 | 237 | ||||
Vizcaya in Kendall Community Development District Special Assessment | 100 | 4.125 | 11/01/46 | 90 | ||||
Volusia County Educational Facility Authority Revenue Bonds | 240 | 5.000 | 06/01/45 | 263 | ||||
Waterford Landing Community Development District Special Assessment | 145 | 5.500 | 05/01/34 | 149 | ||||
Waterford Landing Community Development District Special Assessment | 150 | 5.750 | 05/01/44 | 156 | ||||
Winding Cypress Community Development District Special Assessment | 100 | 5.000 | 11/01/45 | 97 | ||||
31,036 | ||||||||
Georgia - 1.3% | ||||||||
Cobb County Development Authority Revenue Bonds | 1,500 | 5.000 | 07/15/38 | 1,597 | ||||
Milledgeville & Baldwin County Development Authority Revenue Bonds(µ)(Ê) | 995 | 0.784 | 10/01/24 | 978 | ||||
Milledgeville & Baldwin County Development Authority Revenue Bonds(µ)(Ê) | 1,225 | 0.834 | 10/01/33 | 1,067 | ||||
Monroe County Development Authority Revenue Bonds(Ê) | 1,000 | 1.170 | 11/01/48 | 1,000 | ||||
Private Colleges & Universities Authority Revenue Bonds | 1,000 | 5.000 | 10/01/40 | 1,031 | ||||
5,673 | ||||||||
Guam - 1.8% | ||||||||
Guam Government Waterworks Authority Revenue Bonds | 1,000 | 5.500 | 07/01/43 | 1,103 | ||||
Guam Government Waterworks Authority Revenue Bonds | 880 | 5.000 | 01/01/46 | 911 | ||||
Territory of Guam Revenue Bonds | 900 | 5.000 | 11/15/19 | 961 | ||||
Territory of Guam Revenue Bonds | 615 | 5.000 | 11/15/30 | 666 | ||||
Territory of Guam Revenue Bonds | 500 | 5.000 | 12/01/31 | 552 | ||||
Territory of Guam Revenue Bonds | 1,500 | 5.000 | 11/15/35 | 1,585 | ||||
Territory of Guam Revenue Bonds | 1,775 | 5.125 | 01/01/42 | 1,840 | ||||
Territory of Guam Revenue Bonds | 100 | 5.000 | 12/01/46 | 106 | ||||
7,724 | ||||||||
Hawaii - 0.5% | ||||||||
State of Hawaii Department of Budget & Finance Revenue Bonds | 2,210 | 5.000 | 01/01/30 | 2,229 | ||||
Illinois - 9.1% |
See accompanying notes which are an integral part of the financial statements.
494 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||||
Principal | Fair | ||||||
Amount ($) | Rate | Date of | Value | ||||
or Shares | % | Maturity | $ | ||||
Chicago Board of Education Capital Improvement Tax Bonds | 500 | 5.750 | 04/01/35 | 512 | |||
Chicago Board of Education General Obligation Unlimited | 145 | 4.250 | 12/01/18 | 139 | |||
Chicago Board of Education General Obligation Unlimited(Ê) | 1,000 | 7.500 | 03/01/26 | 1,004 | |||
Chicago Board of Education General Obligation Unlimited(µ) | 1,000 | 5.000 | 12/01/27 | 1,022 | |||
Chicago Board of Education General Obligation Unlimited | 795 | 5.000 | 12/01/28 | 661 | |||
Chicago Board of Education General Obligation Unlimited(µ) | 305 | 5.078 | 12/01/29 | 172 | |||
Chicago Board of Education General Obligation Unlimited | 150 | 5.125 | 12/01/32 | 126 | |||
Chicago Board of Education General Obligation Unlimited | 100 | 5.250 | 12/01/35 | 84 | |||
Chicago Board of Education General Obligation Unlimited(Ê) | 1,000 | 1.220 | 03/01/36 | 960 | |||
Chicago Board of Education General Obligation Unlimited | 75 | 5.250 | 12/01/39 | 61 | |||
Chicago Board of Education General Obligation Unlimited | 100 | 5.500 | 12/01/39 | 83 | |||
Chicago Board of Education General Obligation Unlimited | 325 | 5.000 | 12/01/41 | 261 | |||
Chicago Board of Education General Obligation Unlimited | 1,400 | 7.000 | 12/01/44 | 1,344 | |||
Chicago Board of Education General Obligation Unlimited | 1,460 | 6.500 | 12/01/46 | 1,366 | |||
Chicago Board of Education Special Tax | 450 | 6.000 | 04/01/46 | 469 | |||
Chicago O'Hare International Airport Revenue Bonds | 1,000 | 5.000 | 01/01/46 | 1,067 | |||
Chicago Transit Authority Revenue Bonds | 3,500 | 5.000 | 12/01/46 | 3,772 | |||
City of Chicago General Obligation Unlimited | 235 | 5.000 | 01/01/33 | 227 | |||
City of Chicago Illinois General Obligation Unlimited(µ) | 2,445 | 5.000 | 01/01/29 | 2,492 | |||
City of Chicago Illinois General Obligation Unlimited | 250 | 5.500 | 01/01/31 | 252 | |||
City of Chicago Illinois General Obligation Unlimited | 2,025 | 6.000 | 01/01/38 | 2,115 | |||
City of Chicago Illinois General Obligation Unlimited | 2,465 | 5.500 | 01/01/42 | 2,438 | |||
City of Chicago Illinois Revenue Bonds | 900 | 5.000 | 01/01/34 | 945 | |||
City of Chicago Illinois Revenue Bonds | 3,000 | 5.250 | 01/01/38 | 3,112 | |||
City of Chicago Illinois Waterworks Revenue Bonds | 100 | 5.000 | 11/01/29 | 110 | |||
City of Springfield Illinois Electric Revenue Bonds(µ) | 775 | 4.000 | 03/01/40 | 781 | |||
Illinois Finance Authority Revenue Bonds(ae) | 560 | 6.000 | 05/15/20 | 638 | |||
Illinois Finance Authority Revenue Bonds(Ê) | 500 | 0.610 | 10/01/29 | 500 | |||
Illinois Finance Authority Revenue Bonds | 1,375 | 5.000 | 05/15/31 | 1,443 | |||
Illinois Finance Authority Revenue Bonds | 200 | 5.000 | 04/01/36 | 200 | |||
Illinois Finance Authority Revenue Bonds | 400 | 5.000 | 12/01/36 | 400 | |||
Illinois Finance Authority Revenue Bonds | 630 | 5.000 | 12/01/37 | 655 | |||
Illinois Finance Authority Revenue Bonds | 1,000 | 6.500 | 04/01/39 | 1,055 | |||
Illinois Finance Authority Revenue Bonds | 315 | 6.000 | 05/15/39 | 333 | |||
Illinois Finance Authority Revenue Bonds | 350 | 6.500 | 10/15/40 | 364 | |||
Illinois Finance Authority Revenue Bonds | 1,000 | 6.500 | 04/01/44 | 1,053 | |||
Illinois Finance Authority Revenue Bonds | 100 | 5.000 | 09/01/46 | 106 | |||
Metropolitan Pier & Exposition Authority Revenue Bonds | 1,000 | 5.000 | 12/15/28 | 1,038 | |||
Metropolitan Pier & Exposition Authority Revenue Bonds(µ) | 220 | 4.700 | 06/15/30 | 126 | |||
Metropolitan Pier & Exposition Authority Revenue Bonds | 1,050 | 5.000 | 06/15/52 | 1,040 | |||
Springfield Metropolitan Sanitation District General Obligation Limited | 1,000 | 5.750 | 01/01/53 | 1,133 | |||
State of Illinois General Obligation Unlimited | 125 | 5.000 | 11/01/21 | 132 | |||
State of Illinois General Obligation Unlimited | 1,000 | 5.000 | 05/01/29 | 1,026 | |||
State of Illinois General Obligation Unlimited(µ) | 875 | 4.000 | 02/01/30 | 885 | |||
State of Illinois General Obligation Unlimited(µ) | 265 | 4.000 | 02/01/31 | 266 | |||
Town of Cortland Illinois Special Service Areas No. 9 & 10 Special Tax | 100 | 5.800 | 03/01/37 | 96 | |||
Village of Bourbonnais Illinois Revenue Bonds | 1,000 | 5.000 | 11/01/44 | 1,010 | |||
Village of Bourbonnais Industrial Project Revenue Bonds | 150 | 6.000 | 11/01/35 | 157 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 495
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Village of Bourbonnais Industrial Project Revenue Bonds | 150 | 5.500 | 11/01/42 | 156 | ||||
39,387 | ||||||||
Indiana - 3.1% | ||||||||
Indiana Finance Authority Revenue Bonds(Ê) | 10,000 | 0.530 | 11/01/39 | 10,000 | ||||
Indiana Finance Authority Revenue Bonds | 600 | 5.500 | 08/15/40 | 634 | ||||
Indiana Finance Authority Revenue Bonds | 2,000 | 5.000 | 10/01/44 | 2,107 | ||||
Indiana Finance Authority Revenue Bonds | 405 | 5.500 | 08/15/45 | 428 | ||||
Indiana Municipal Power Agency Revenue Bonds | 250 | 5.000 | 01/01/42 | 281 | ||||
13,450 | ||||||||
Iowa - 0.1% | ||||||||
Iowa Tobacco Settlement Authority Revenue Bonds | 160 | 5.375 | 06/01/38 | 160 | ||||
Xenia Rural Water District Revenue Bonds | 250 | 5.000 | 12/01/36 | 272 | ||||
432 | ||||||||
Kentucky - 0.7% | ||||||||
County of Ohio Kentucky Revenue Bonds | 1,735 | 6.000 | 07/15/31 | 1,730 | ||||
Kentucky Economic Development Finance Authority Revenue Bonds | 750 | 6.500 | 03/01/45 | 810 | ||||
Louisville/Jefferson County Metropolitan Government Revenue Bonds | 425 | 4.000 | 10/01/34 | 432 | ||||
Louisville/Jefferson County Metropolitan Government Revenue Bonds | 250 | 4.000 | 10/01/36 | 252 | ||||
3,224 | ||||||||
Louisiana - 3.0% | ||||||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue Bonds(Ê) | 1,000 | 0.500 | 08/01/35 | 1,000 | ||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue Bonds(Ê) | 3,000 | 0.700 | 12/01/40 | 3,000 | ||||
Louisiana Local Government Environmental Facilities & Community Development | ||||||||
Authority Revenue Bonds(µ) | 80 | 5.000 | 10/01/39 | 88 | ||||
Louisiana Local Government Environmental Facilities & Community Development | ||||||||
Authority Revenue Bonds(µ) | 150 | 4.000 | 10/01/41 | 150 | ||||
Louisiana Local Government Environmental Facilities & Community Development | ||||||||
Authority Revenue Bonds | 750 | 6.000 | 10/01/44 | 824 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 250 | 4.000 | 05/15/19 | 261 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 300 | 4.000 | 05/15/20 | 321 | ||||
Louisiana Public Facilities Authority Revenue Bonds(Ê) | 4,280 | 0.870 | 04/02/23 | 4,280 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 400 | 3.375 | 09/01/28 | 401 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 375 | 3.500 | 06/01/30 | 375 | ||||
New Orleans Aviation Board Revenue Bonds | 2,000 | 5.000 | 01/01/45 | 2,153 | ||||
12,853 | ||||||||
Maine - 0.5% | ||||||||
Maine Health & Higher Education Facilities Authority Revenue Bonds | 2,000 | 5.000 | 07/01/33 | 2,061 | ||||
Maryland - 2.2% | ||||||||
City of Baltimore Maryland Revenue Bonds(µ) | 175 | 5.250 | 09/01/39 | 175 | ||||
Maryland Health & Higher Educational Facilities Authority Revenue Bonds | 730 | 4.000 | 07/01/20 | 774 | ||||
Maryland Health & Higher Educational Facilities Authority Revenue Bonds(Ê) | 6,600 | 0.510 | 04/01/35 | 6,600 | ||||
Maryland Health & Higher Educational Facilities Authority Revenue Bonds | 600 | 5.250 | 01/01/37 | 661 | ||||
Maryland Health & Higher Educational Facilities Authority Revenue Bonds | 1,000 | 5.000 | 07/01/45 | �� | 1,070 | |||
9,280 | ||||||||
Massachusetts - 2.4% | ||||||||
Massachusetts Development Finance Agency Revenue Bonds | 1,415 | 5.000 | 09/01/35 | 1,480 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 1,580 | 5.000 | 10/01/35 | 1,711 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 1,545 | 5.000 | 07/01/44 | 1,636 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 335 | 5.000 | 07/01/46 | 357 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 2,000 | 5.000 | 01/01/47 | 2,182 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 1,000 | 5.000 | 10/01/48 | 1,063 |
See accompanying notes which are an integral part of the financial statements.
496 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Massachusetts Port Authority Revenue Bonds(µ) | 2,000 | 5.000 | 01/01/27 | 2,033 | ||||
10,462 | ||||||||
Michigan - 3.2% | ||||||||
City of Detroit Michigan Sewage Disposal System Revenue Bonds(µ) | 500 | 5.000 | 07/01/39 | 545 | ||||
City of Detroit Michigan Sewage Disposal System Revenue Bonds | 2,010 | 5.250 | 07/01/39 | 2,224 | ||||
City of Detroit Michigan Water Supply System Revenue Bonds | 200 | 5.000 | 07/01/36 | 212 | ||||
City of Detroit Michigan Water Supply System Revenue Bonds | 1,370 | 5.000 | 07/01/41 | 1,442 | ||||
Michigan Finance Authority Revenue Bonds | 1,000 | 3.875 | 10/01/23 | 1,057 | ||||
Michigan Finance Authority Revenue Bonds | 300 | 5.000 | 07/01/33 | 327 | ||||
Michigan Finance Authority Revenue Bonds(µ) | 1,000 | 5.000 | 07/01/36 | 1,100 | ||||
Michigan Finance Authority Revenue Bonds | 1,815 | 5.500 | 11/15/45 | 1,889 | ||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds | 175 | 5.125 | 06/01/22 | 174 | ||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds | 2,500 | 6.000 | 06/01/34 | 2,419 | ||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds | 100 | 6.000 | 06/01/48 | 96 | ||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds | 5,500 | 8.588 | 06/01/52 | 305 | ||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds | 23,650 | 9.111 | 06/01/52 | 1,610 | ||||
Ypsilanti School District General Obligation Unlimited | 300 | 5.000 | 05/01/22 | 340 | ||||
13,740 | ||||||||
Minnesota - 2.1% | ||||||||
City of Blaine Minnesota Revenue Bonds | 2,000 | 6.125 | 07/01/45 | 2,054 | ||||
City of Ham Lake Minnesota Revenue Bonds | 2,000 | 5.000 | 11/01/36 | 2,029 | ||||
Housing & Redevelopment Authority of The City of State Paul Minnesota Revenue | ||||||||
Bonds | 350 | 6.000 | 09/01/51 | 354 | ||||
Minnesota Agricultural & Economic Development Board Revenue Bonds(Ê) | 2,560 | 0.870 | 09/01/21 | 2,560 | ||||
State Paul Housing & Redevelopment Authority Revenue Bonds | 2,000 | 5.250 | 11/15/35 | 2,124 | ||||
9,121 | ||||||||
Mississippi - 0.2% | ||||||||
Mississippi Business Finance Corp. Revenue Bonds(Ê) | 1,000 | 0.600 | 12/01/30 | 1,000 | ||||
Missouri - 0.8% | ||||||||
Branson Industrial Development Authority Tax Allocation | 110 | 5.500 | 06/01/29 | 107 | ||||
Health & Educational Facilities Authority of the State of Missouri Revenue Bonds | 1,140 | 4.000 | 02/01/37 | 1,099 | ||||
Health & Educational Facilities Authority of the State of Missouri Revenue Bonds | 1,410 | 5.000 | 05/01/40 | 1,485 | ||||
State Louis County Industrial Development Authority Revenue Bonds | 650 | 5.000 | 08/15/30 | 657 | ||||
3,348 | ||||||||
Nevada - 0.1% | ||||||||
Henderson Local Improvement Districts Special Assessment | 50 | 4.000 | 09/01/35 | 46 | ||||
Las Vegas Redevelopment Agency Tax Allocation | 250 | 5.000 | 06/15/45 | 273 | ||||
Las Vegas Special Improvement District 607 Special Assessment | 255 | 5.000 | 06/01/24 | 274 | ||||
593 | ||||||||
New Hampshire - 0.1% | ||||||||
New Hampshire Health and Education Facilities Authority Act Revenue Bonds | 500 | 5.000 | 10/01/36 | 526 | ||||
New Jersey - 5.5% | ||||||||
New Jersey Economic Development Authority Revenue Bonds | 500 | 5.000 | 07/01/32 | 536 | ||||
New Jersey Economic Development Authority Revenue Bonds | 500 | 5.000 | 06/01/36 | 501 | ||||
New Jersey Economic Development Authority Revenue Bonds | 1,900 | 5.000 | 07/01/38 | 2,012 | ||||
New Jersey Economic Development Authority Revenue Bonds | 1,500 | 5.375 | 01/01/43 | 1,665 | ||||
New Jersey Economic Development Authority Revenue Bonds | 100 | 5.000 | 07/01/47 | 106 | ||||
New Jersey Economic Development Authority Revenue Bonds | 1,250 | 5.000 | 01/01/48 | 1,312 | ||||
New Jersey Educational Facilities Authority Revenue Bonds | 1,000 | 5.000 | 07/01/46 | 969 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 497
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 100 | 5.000 | 07/01/30 | 111 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) | 300 | 4.125 | 07/01/38 | 303 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 500 | 6.625 | 07/01/38 | 532 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) | 150 | 5.000 | 07/01/46 | 162 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) | 675 | 4.342 | 12/15/27 | 433 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 165 | 5.000 | 06/15/30 | 174 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 3,000 | 5.000 | 06/15/31 | 3,062 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ)(Ê) | 500 | 0.010 | 12/15/33 | 234 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) | 225 | 4.823 | 12/15/34 | 99 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) | 4,075 | 5.130 | 12/15/35 | 1,590 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 550 | 5.591 | 12/15/35 | 200 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 125 | 5.632 | 12/15/36 | 43 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 675 | 5.000 | 06/15/38 | 679 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 400 | 5.500 | 06/15/41 | 417 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 945 | 5.000 | 06/15/42 | 946 | ||||
South Jersey Transportation Authority LLC Revenue Bonds | 315 | 5.000 | 11/01/26 | 352 | ||||
South Jersey Transportation Authority LLC Revenue Bonds | 1,945 | 5.000 | 11/01/39 | 2,062 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 1,430 | 4.750 | 06/01/34 | 1,399 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 3,805 | 5.000 | 06/01/41 | 3,706 | ||||
23,605 | ||||||||
New Mexico - 0.0% | ||||||||
City of Farmington Pollution Control Revenue Bonds | 100 | 6.250 | 06/01/40 | 111 | ||||
New York - 4.7% | ||||||||
Brooklyn Arena Local Development Corp. Revenue Bonds(µ) | 30 | 3.000 | 07/15/43 | 26 | ||||
City of New York General Obligation Unlimited(Ê) | 350 | 0.700 | 06/01/44 | 350 | ||||
City of New York New York General Obligation Unlimited(Ê) | 300 | 0.440 | 01/01/36 | 300 | ||||
City of New York New York General Obligation Unlimited(Ê) | 350 | 0.860 | 08/01/38 | 350 | ||||
County of Chautauqua Industrial Development Agency Revenue Bonds | 650 | 5.875 | 04/01/42 | 679 | ||||
Dutchess County Industrial Development Agency Revenue Bonds | 1,200 | 4.500 | 08/01/36 | 971 | ||||
Metropolitan Transportation Authority Revenue Bonds(µ)(Ê) | 500 | 0.880 | 11/01/31 | 500 | ||||
New York City Industrial Development Agency Revenue Bonds(µ) | 2,175 | 5.000 | 01/01/39 | 2,180 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Revenue | ||||||||
Bonds(Ê) | 350 | 0.040 | 06/15/50 | 350 | ||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds(Ê) | 350 | 0.700 | 02/01/45 | 350 | ||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds(Ê) | 300 | 0.700 | 11/01/36 | 300 | ||||
New York City Water & Sewer System Revenue Bonds(Ê) | 300 | 0.700 | 06/15/43 | 300 | ||||
New York City Water & Sewer System Revenue Bonds(Ê) | 350 | 0.730 | 06/15/50 | 350 | ||||
New York Liberty Development Corp. Revenue Bonds | 300 | 5.375 | 11/15/40 | 328 | ||||
New York Liberty Development Corp. Revenue Bonds | 2,400 | 5.000 | 11/15/44 | 2,549 | ||||
New York Liberty Development Corp. Revenue Bonds | 1,500 | 7.250 | 11/15/44 | 1,799 | ||||
New York State Dormitory Authority Revenue Bonds | 375 | 5.000 | 02/15/27 | 457 | ||||
New York State Dormitory Authority Revenue Bonds | 900 | 5.000 | 12/01/29 | 995 | ||||
New York State Dormitory Authority Revenue Bonds | 400 | 5.000 | 12/01/35 | 429 | ||||
New York Transportation Development Corp. Revenue Bonds | 350 | 5.000 | 08/01/21 | 385 | ||||
New York Transportation Development Corp. Revenue Bonds | 500 | 5.000 | 08/01/26 | 530 | ||||
New York Transportation Development Corp. Revenue Bonds | 500 | 5.000 | 08/01/31 | 526 | ||||
New York Transportation Development Corp. Revenue Bonds | 1,000 | 5.000 | 07/01/41 | 1,072 | ||||
New York Transportation Development Corp. Revenue Bonds | 2,100 | 5.000 | 07/01/46 | 2,243 | ||||
New York Transportation Development Corp. Revenue Bonds | 1,000 | 5.250 | 01/01/50 | 1,082 |
See accompanying notes which are an integral part of the financial statements.
498 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
New York Transportation Development Corp. Revenue Bonds(µ) | 300 | 4.000 | 01/01/51 | 290 | ||||
Suffolk Tobacco Asset Securitization Corp. Revenue Bonds | 250 | 6.000 | 06/01/48 | 257 | ||||
Westchester County Local Development Corp. Revenue Bonds | 125 | 5.000 | 11/01/46 | 132 | ||||
20,080 | ||||||||
North Carolina - 0.3% | ||||||||
North Carolina Turnpike Authority Revenue Bonds | 1,000 | 5.000 | 07/01/51 | 1,082 | ||||
North Dakota - 0.2% | ||||||||
County of Burleigh North Dakota Revenue Bonds | 705 | 5.200 | 04/15/46 | 701 | ||||
Ohio - 4.5% | ||||||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 2,930 | 5.125 | 06/01/24 | 2,793 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 1,300 | 5.375 | 06/01/24 | 1,254 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 2,840 | 5.875 | 06/01/30 | 2,733 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 1,675 | 5.750 | 06/01/34 | 1,599 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 4,850 | Zero coupon | 06/01/47 | 318 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 160 | 5.875 | 06/01/47 | 153 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 17,545 | Zero coupon | 06/01/52 | 446 | ||||
County of Montgomery Ohio Revenue Bonds(Ê) | 6,660 | 0.570 | 11/15/39 | 6,660 | ||||
County of Montgomery Ohio Revenue Bonds(Ê) | 3,230 | 0.590 | 11/15/39 | 3,230 | ||||
19,186 | ||||||||
Oklahoma - 1.4% | ||||||||
Norman Regional Hospital Authority Revenue Bonds | 1,500 | 5.000 | 09/01/37 | 1,632 | ||||
Oklahoma Development Finance Authority Revenue Bonds | 1,675 | 5.000 | 08/01/47 | 1,784 | ||||
Oklahoma Development Finance Authority Revenue Bonds | 425 | 5.000 | 08/01/52 | 452 | ||||
Oklahoma Development Finance Authority Revenue Bonds | 125 | 5.250 | 08/01/57 | 135 | ||||
Tulsa Airports Improvement Trust Revenue Bonds(Ê) | 1,000 | 5.000 | 06/01/35 | 1,063 | ||||
Tulsa County Industrial Authority Revenue Bonds | 1,000 | 5.250 | 11/15/37 | 1,077 | ||||
6,143 | ||||||||
Oregon - 1.3% | ||||||||
Astoria Hospital Facilities Authority Revenue Bonds | 1,000 | 5.000 | 08/01/41 | 1,061 | ||||
Oregon State Facilities Authority Revenue Bonds | 1,000 | 5.000 | 10/01/36 | 1,051 | ||||
Oregon State Facilities Authority Revenue Bonds | 2,500 | 5.000 | 04/01/45 | 2,769 | ||||
Oregon State Facilities Authority Revenue Bonds | 500 | 5.000 | 10/01/46 | 534 | ||||
5,415 | ||||||||
Pennsylvania - 4.9% | ||||||||
Allentown Neighborhood Improvement Zone Development Authority Revenue Bonds | 1,000 | 5.000 | 05/01/42 | 1,035 | ||||
City of Erie Higher Education Building Authority Revenue Bonds | 2,065 | 5.000 | 09/15/33 | 2,131 | ||||
City of Harrisburg Pennsylvania General Obligation Unlimited(µ) | 285 | 4.697 | 09/15/22 | 223 | ||||
City of Scranton Pennsylvania General Obligation Unlimited | 100 | 5.000 | 11/15/32 | 103 | ||||
Clairton Municipal Authority Revenue Bonds | 240 | 5.000 | 12/01/42 | 259 | ||||
East Hempfield Township Industrial Development Authority Revenue Bonds | 600 | 5.000 | 07/01/45 | 613 | ||||
Geisinger Authority Revenue Bonds(Ê) | 100 | 0.956 | 05/01/37 | 84 | ||||
Huntingdon County General Authority Revenue Bonds | 1,000 | 5.000 | 05/01/46 | 1,037 | ||||
Lancaster County Hospital Authority Revenue Bonds | 1,000 | 5.250 | 07/01/41 | 1,066 | ||||
Latrobe Industrial Development Authority Revenue Bonds | 1,375 | 5.000 | 05/01/43 | 1,448 | ||||
Montgomery County Industrial Development Authority Revenue Bonds | 1,530 | 5.000 | 11/15/36 | 1,653 | ||||
Montgomery County Industrial Development Authority Revenue Bonds | 1,700 | 5.250 | 01/15/46 | 1,791 | ||||
Northampton County General Purpose Authority Revenue Bonds | 1,000 | 5.000 | 10/01/36 | 1,086 | ||||
Pennsylvania Economic Development Financing Authority Revenue Bonds | 2,000 | 5.000 | 09/01/20 | 2,008 | ||||
Pennsylvania Economic Development Financing Authority Revenue Bonds | 1,250 | 5.000 | 06/30/42 | 1,355 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 499
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | 365 | 5.000 | 07/01/31 | 397 | ||||
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | 355 | 6.250 | 09/01/33 | 386 | ||||
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | 950 | 5.500 | 07/15/43 | 1,032 | ||||
Pennsylvania Turnpike Commission Revenue Bonds | 1,250 | 5.000 | 12/01/40 | 1,374 | ||||
Scranton Redevelopment Authority Revenue Bonds | 100 | 5.000 | 11/15/28 | 101 | ||||
Scranton School District General Obligation Unlimited(µ) | 2,000 | 4.250 | 06/01/37 | 2,046 | ||||
21,228 | ||||||||
Puerto Rico - 5.8% | ||||||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 540 | 5.500 | 07/01/19 | 564 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited | 110 | 5.000 | 07/01/21 | 68 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 320 | 5.250 | 07/01/24 | 341 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 100 | 5.000 | 07/01/31 | 105 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited | 130 | 5.125 | 07/01/31 | 80 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited | 1,235 | 5.000 | 07/01/35 | 1,188 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited | 1,250 | 8.000 | 07/01/35 | 781 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited | 720 | 6.000 | 07/01/39 | 441 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited | 180 | 6.000 | 07/01/40 | 108 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds(µ) | 265 | 5.000 | 07/01/28 | 271 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds | 20 | 5.000 | 07/01/30 | 16 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds | 50 | 5.000 | 07/01/33 | 40 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds | 3,030 | 5.250 | 07/01/42 | 2,423 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds | 100 | 6.000 | 07/01/44 | 83 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds | 150 | 6.000 | 07/01/47 | 122 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 100 | 5.000 | 07/01/17 | 100 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 2,050 | 5.000 | 07/01/31 | 2,051 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 125 | 4.500 | 07/01/36 | 123 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ) | 270 | 5.000 | 07/01/22 | 275 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ)(Ê) | 1,440 | 0.738 | 07/01/29 | 1,145 | ||||
Puerto Rico Highway s & Transportation Authority Revenue Bonds(µ) | 125 | 5.250 | 07/01/31 | 132 | ||||
Puerto Rico Highway s & Transportation Authority Revenue Bonds | 500 | 5.250 | 07/01/33 | 558 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds | 420 | 5.000 | 07/01/28 | 375 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds | 205 | 5.000 | 07/01/32 | 54 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) | 160 | 4.750 | 07/01/38 | 159 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) | 3,750 | 5.250 | 07/01/38 | 3,922 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds | 180 | 5.000 | 07/01/42 | 48 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 255 | 5.500 | 07/01/17 | 256 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 2,230 | 5.500 | 07/01/23 | 2,387 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 675 | 6.149 | 07/01/35 | 228 | ||||
Puerto Rico Public Buildings Authority Revenue Bonds(µ) | 1,500 | 5.250 | 07/01/21 | 1,614 | ||||
Puerto Rico Public Buildings Authority Revenue Bonds(µ) | 425 | 6.000 | 07/01/24 | 439 | ||||
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | 115 | 6.750 | 08/01/16 | 44 | ||||
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | 155 | 6.250 | 08/01/19 | 40 | ||||
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | 360 | 5.375 | 08/01/39 | 120 | ||||
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | 1,425 | 5.250 | 08/01/41 | 472 | ||||
Puerto Rico Sales Tax Financing Corp. Revenue Bonds(µ) | 14,125 | 5.953 | 08/01/45 | 2,824 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds | 235 | 6.125 | 08/01/19 | 62 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds | 900 | 13.321 | 08/01/34 | 93 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds | 900 | 12.592 | 08/01/35 | 93 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds | 200 | 11.873 | 08/01/37 | 19 |
See accompanying notes which are an integral part of the financial statements.
500 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds | 780 | 6.000 | 08/01/42 | 283 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds | 610 | 6.500 | 08/01/44 | 238 | ||||
24,785 | ||||||||
Rhode Island - 0.4% | ||||||||
Rhode Island Health & Educational Building Corp. Revenue Bonds | 500 | 5.000 | 05/15/39 | 527 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds(Ê) | 4,000 | 0.010 | 06/01/52 | 418 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 12,000 | 8.861 | 06/01/52 | 756 | ||||
1,701 | ||||||||
South Carolina - 0.1% | ||||||||
South Carolina Ports Authority Revenue Bonds | 125 | 5.250 | 07/01/55 | 136 | ||||
South Carolina State Public Service Authority Revenue Bonds | 250 | 5.250 | 12/01/55 | 271 | ||||
407 | ||||||||
Tennessee - 1.1% | ||||||||
Bristol Industrial Development Board Revenue Bonds | 100 | 5.000 | 12/01/35 | 97 | ||||
Bristol Industrial Development Board Revenue Bonds | 300 | 5.125 | 12/01/42 | 287 | ||||
Chattanooga-Hamilton County Hospital Authority Revenue Bonds | 2,000 | 5.000 | 10/01/44 | 2,074 | ||||
Johnson City Health & Educational Facilities Board Revenue Bonds | 1,000 | 5.000 | 08/15/42 | 1,055 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd | ||||||||
Revenue Bonds | 100 | 5.000 | 07/01/40 | 111 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd | ||||||||
Revenue Bonds | 1,000 | 5.000 | 10/01/41 | 1,102 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd | ||||||||
Revenue Bonds | 100 | 5.000 | 07/01/46 | 110 | ||||
4,836 | ||||||||
Texas - 4.8% | ||||||||
Austin Convention Enterprises, Inc. Revenue Bonds(µ) | 1,690 | 4.300 | 01/01/33 | 1,690 | ||||
Austin Convention Enterprises, Inc. Revenue Bonds(µ) | 785 | 5.000 | 01/01/34 | 786 | ||||
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue Bonds | 50 | 5.250 | 12/01/35 | 53 | ||||
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue Bonds | 65 | 5.000 | 12/01/40 | 67 | ||||
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue Bonds | 50 | 5.000 | 12/01/45 | 51 | ||||
Central Texas Regional Mobility Authority Revenue Bonds | 100 | 5.000 | 01/01/45 | 109 | ||||
Central Texas Regional Mobility Authority Revenue Bonds | 100 | 5.000 | 01/01/46 | 110 | ||||
Central Texas Turnpike System Revenue Bonds | 3,000 | 5.000 | 08/15/42 | 3,293 | ||||
City of Aubrey Texas Revenue Bonds | 700 | 7.250 | 09/01/45 | 679 | ||||
City of Celina Texas Special Assessment | 50 | 6.250 | 09/01/45 | 51 | ||||
City of Celina Texas Special Assessment | 100 | 7.500 | 09/01/45 | 109 | ||||
City of Houston Texas Airport System Revenue Bonds | 500 | 5.000 | 07/01/29 | 535 | ||||
City of Houston Texas Airport System Revenue Bonds | 1,000 | 5.000 | 07/15/30 | 1,073 | ||||
City of Houston Texas Airport System Revenue Bonds | 1,000 | 5.000 | 07/15/35 | 1,049 | ||||
Clifton Higher Education Finance Corp. Revenue Bonds | 500 | 5.000 | 12/01/45 | 521 | ||||
Decatur Hospital Authority Revenue Bonds | 200 | 5.250 | 09/01/44 | 209 | ||||
Grand Parkway Transportation Corp. Revenue Bonds | 2,500 | 5.500 | 04/01/53 | 2,787 | ||||
Kaufman County Fresh Water Supply District No. 1-C(µ) | 185 | 4.000 | 09/01/35 | 186 | ||||
Midlothian Industrial Development Corp. Revenue Bonds(Ê) | 700 | 0.730 | 08/01/34 | 700 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 55 | 5.000 | 04/01/36 | 58 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 1,500 | 4.750 | 04/01/46 | 1,502 | ||||
New Hope Cultural Education Facilities Finance Corp. Revenue Bonds | 500 | 5.375 | 11/15/36 | 470 | ||||
New Hope Cultural Education Facilities Finance Corp. Revenue Bonds | 200 | 5.000 | 07/01/47 | 211 | ||||
North East Texas Regional Mobility Authority Revenue Bonds | 385 | 5.000 | 01/01/41 | 412 | ||||
Red River Education Finance Corp. Texas Education Revenue Bonds | 1,000 | 5.500 | 10/01/46 | 1,098 | ||||
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds | 200 | 5.000 | 05/15/45 | 198 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 501
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Texas City Industrial Development Corp. Revenue Bonds | 1,000 | 4.125 | 12/01/45 | 925 | ||||
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds | 750 | 6.250 | 12/15/26 | 905 | ||||
Texas State Transportation Revenue Bonds | 100 | 5.000 | 12/31/50 | 108 | ||||
Texas State Transportation Revenue Bonds | 100 | 5.000 | 12/31/55 | 107 | ||||
Viridian Municipal Management District Special Assessment | 86 | 4.000 | 12/01/21 | 89 | ||||
Viridian Municipal Management District Special Assessment | 385 | 4.750 | 12/01/43 | 371 | ||||
20,512 | ||||||||
Utah - 0.4% | ||||||||
Salt Lake City Corp. Airport Revenue Bonds | 1,350 | 5.000 | 07/01/47 | 1,518 | ||||
Vermont - 0.3% | ||||||||
Vermont Educational & Health Buildings Financing Agency Revenue Bonds | 1,050 | 5.000 | 10/01/42 | 1,112 | ||||
Virgin Islands - 1.3% | ||||||||
Virgin Islands Public Finance Authority Revenue Bonds(µ) | 2,000 | 4.000 | 10/01/22 | 2,050 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 875 | 5.000 | 10/01/25 | 761 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 180 | 5.000 | 10/01/29 | 154 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 2,220 | 5.000 | 10/01/32 | 1,721 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 1,000 | 6.750 | 10/01/37 | 805 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 200 | 5.000 | 10/01/39 | 150 | ||||
Virgin Islands Water & Power Authority - Electric System Revenue Bonds | 250 | 5.000 | 07/01/31 | 150 | ||||
5,791 | ||||||||
Virginia - 0.5% | ||||||||
Tobacco Settlement Financing Corp. Revenue Bonds | 1,000 | 5.200 | 06/01/46 | 968 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 125 | 5.000 | 06/01/47 | 119 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 7,625 | 11.642 | 06/01/47 | 688 | ||||
Virginia Small Business Financing Authority Revenue Bonds | 180 | 5.000 | 01/01/40 | 188 | ||||
1,963 | ||||||||
Washington - 2.4% | ||||||||
Washington Health Care Facilities Authority Revenue Bonds(Ê) | 8,950 | 0.780 | 08/15/41 | 8,950 | ||||
Whidbey Island Public Hospital District General Obligation Unlimited | 1,500 | 5.500 | 12/01/33 | 1,588 | ||||
10,538 | ||||||||
Wisconsin - 0.9% | ||||||||
Oregon Public Finance Authority Revenue Bonds | 630 | 5.250 | 05/15/37 | 666 | ||||
Oregon Public Finance Authority Revenue Bonds | 750 | 5.250 | 05/15/42 | 789 | ||||
Public Finance Authority Revenue Bonds | 300 | 3.000 | 11/15/22 | 301 | ||||
Public Finance Authority Revenue Bonds | 100 | 4.300 | 11/01/30 | 101 | ||||
Public Finance Authority Revenue Bonds | 500 | 5.000 | 07/01/42 | 513 | ||||
Public Finance Authority Revenue Bonds | 1,000 | 5.875 | 04/01/45 | 1,032 | ||||
Public Finance Authority Revenue Bonds | 340 | 5.250 | 07/01/47 | 352 | ||||
3,754 | ||||||||
Total Municipal Bonds (cost $413,321) | 419,643 | |||||||
Short-Term Investments - 0.1% | ||||||||
U.S. Cash Management Fund | 517,554 | (8) | 518 | |||||
Total Short-Term Investments (cost $518) | 518 | |||||||
Total Investments 97.6% (identified cost $413,839) | 420,161 | |||||||
Other Assets and Liabilities, Net - 2.4% | 10,319 | |||||||
Net Assets - 100.0% | 430,480 |
See accompanying notes which are an integral part of the financial statements.
502 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.7% | ||||||||||||
Bristol Industrial Development Board Revenue Bonds | 11/10/16 | 300,000 | 96.54 | 290 | 287 | |||||||
Bristol Industrial Development Board Revenue Bonds | 11/10/16 | 100,000 | 97.63 | 98 | 97 | |||||||
California Statewide Communities Development Authority Revenue Bonds | 04/28/16 | 250,000 | 104.33 | 261 | 267 | |||||||
Charlotte County Industrial Development Authority Revenue Bonds | 12/09/15 | 250,000 | 98.82 | 247 | 240 | |||||||
Commonwealth of Puerto Rico General Obligation Unlimited | 06/02/15 | 130,000 | 71.35 | 93 | 80 | |||||||
Commonwealth of Puerto Rico General Obligation Unlimited | 06/03/15 | 720,000 | 65.76 | 473 | 441 | |||||||
Commonwealth of Puerto Rico General Obligation Unlimited | 06/03/15 | 235,000 | 69.54 | 163 | 144 | |||||||
Commonwealth of Puerto Rico General Obligation Unlimited | 06/03/15 | 110,000 | 80.62 | 89 | 68 | |||||||
Commonwealth of Puerto Rico General Obligation Unlimited | 06/04/15 | 180,000 | 70.98 | 128 | 108 | |||||||
Commonwealth of Puerto Rico General Obligation Unlimited | 10/31/16 | 1,250,000 | 65.13 | 814 | 781 | |||||||
Mohegan Tribal Finance Authority Revenue Bonds | 01/25/17 | 625,000 | 99.08 | 619 | 652 | |||||||
3,165 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Interest Rate Swap Contracts | ||||||||
Amounts in thousands | ||||||||
Termination | Fair Value | |||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | |||
Morgan Stanley | USD | 4,700 | Three Month MIBOR | 2.250 | % | 12/21/41 | 203 | |
Morgan Stanley | USD | 4,600 | Three Month MIBOR | 1.750 | % | 06/21/47 | 794 | |
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $506 (å) | 997 |
Presentation of Portfolio Holdings | |||||||||||||||
Amount in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||
Municipal Bonds | |||||||||||||||
Alabama | $ | — | $ | 6,279 | $ | — | $ | — | $ | 6,279 | 1.5 | ||||
Alaska | — | 2,825 | — | — | 2,825 | 0.7 | |||||||||
Arizona | — | 3,392 | — | — | 3,392 | 0.8 | |||||||||
California | — | 54,031 | — | — | 54,031 | 12.5 | |||||||||
Colorado | — | 7,501 | — | — | 7,501 | 1.7 | |||||||||
Connecticut | — | 652 | — | — | 652 | 0.1 | |||||||||
Delaware | — | 1,045 | — | — | 1,045 | 0.2 | |||||||||
District of Columbia | — | 3,311 | — | — | 3,311 | 0.8 | |||||||||
Florida | — | 31,036 | — | — | 31,036 | 7.2 | |||||||||
Georgia | — | 5,673 | — | — | 5,673 | 1.3 | |||||||||
Guam | — | 7,724 | — | — | 7,724 | 1.8 | |||||||||
Hawaii | — | 2,229 | — | — | 2,229 | 0.5 | |||||||||
Illinois | — | 39,387 | — | — | 39,387 | 9.1 | |||||||||
Indiana | — | 13,450 | — | — | 13,450 | 3.1 | |||||||||
Iowa | — | 432 | — | — | 432 | 0.1 | |||||||||
Kentucky | — | 3,224 | — | — | 3,224 | 0.7 | |||||||||
Louisiana | — | 12,853 | — | — | 12,853 | 3.0 | |||||||||
Maine | — | 2,061 | — | — | 2,061 | 0.5 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 503
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||
Amount in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Maryland | — | 9,280 | — | — | 9,280 | 2.2 | ||||||||||
Massachusetts | — | 10,462 | — | — | 10,462 | 2.4 | ||||||||||
Michigan | — | 13,740 | — | — | 13,740 | 3.2 | ||||||||||
Minnesota | — | 9,121 | — | — | 9,121 | 2.1 | ||||||||||
Mississippi | — | 1,000 | — | — | 1,000 | 0.2 | ||||||||||
Missouri | — | 3,348 | — | — | 3,348 | 0.8 | ||||||||||
Nevada | — | 593 | — | — | 593 | 0.1 | ||||||||||
New Hampshire | — | 526 | — | — | 526 | 0.1 | ||||||||||
New Jersey | — | 23,605 | — | — | 23,605 | 5.5 | ||||||||||
New Mexico | — | 111 | — | — | 111 | —* | ||||||||||
New York | — | 20,080 | — | — | 20,080 | 4.7 | ||||||||||
North Carolina | — | 1,082 | — | — | 1,082 | 0.3 | ||||||||||
North Dakota | — | 701 | — | — | 701 | 0.2 | ||||||||||
Ohio | — | 19,186 | — | — | 19,186 | 4.5 | ||||||||||
Oklahoma | — | 6,143 | — | — | 6,143 | 1.4 | ||||||||||
Oregon | — | 5,415 | — | — | 5,415 | 1.3 | ||||||||||
Pennsylvania | — | 21,228 | — | — | 21,228 | 4.9 | ||||||||||
Puerto Rico | — | 24,785 | — | — | 24,785 | 5.8 | ||||||||||
Rhode Island | — | 1,701 | — | — | 1,701 | 0.4 | ||||||||||
South Carolina | — | 407 | — | — | 407 | 0.1 | ||||||||||
Tennessee | — | 4,836 | — | — | 4,836 | 1.1 | ||||||||||
Texas | — | 20,512 | — | — | 20,512 | 4.8 | ||||||||||
Utah | — | 1,518 | — | — | 1,518 | 0.4 | ||||||||||
Vermont | — | 1,112 | — | — | 1,112 | 0.3 | ||||||||||
Virgin Islands | — | 5,791 | — | — | 5,791 | 1.3 | ||||||||||
Virginia | — | 1,963 | — | — | 1,963 | 0.5 | ||||||||||
Washington | — | 10,538 | — | — | 10,538 | 2.4 | ||||||||||
Wisconsin | — | 3,754 | — | — | 3,754 | 0.9 | ||||||||||
Short-Term Investments | — | — | — | 518 | 518 | 0.1 | ||||||||||
Total Investments | $ | — | $ | 419,643 | $ | — | $ | 518 | $ | 420,161 | 97.6 | |||||
Other Assets and Liabilities, Net | 2.4 | |||||||||||||||
100.0 | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Interest Rate Swap Contracts | — | 997 | — | — | 997 | 0.2 | ||||||||||
Total Other Financial Instruments** | $ | — | $ | 997 | $ | — | $ | — | $ | 997 |
See accompanying notes which are an integral part of the financial statements.
504 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 505
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Interest Rate | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Interest rate swap contracts, at fair value | $ | 997 | |
Interest Rate | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Interest rate swap contracts | $ | 117 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Interest rate swap contracts | $ | 401 | |
For further disclosure on derivatives see note 2 in the Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
506 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Assets | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | $ | 997 | $ | — $ | 997 | ||||
Total Financial and Derivative Assets | 997 | — | 997 | |||||||
Financial and Derivative Assets not subject to a netting agreement | (997 | ) | — | (997 | ) | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | — | $ | — $ | — |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 507
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 413,839 |
Investments, at fair value(>) | 420,161 | |
Cash | 4,046 | |
Cash (restricted)(a) | 181 | |
Receivables: | ||
Dividends and interest | 5,251 | |
Dividends from affiliated funds | 1 | |
Investments sold | 188 | |
Fund shares sold | 1,466 | |
Prepaid expenses | 4 | |
Interest rate swap contracts, at fair value(•) | 997 | |
Total assets | 432,295 | |
Liabilities | ||
Payables: | ||
Investments purchased | 1,350 | |
Fund shares redeemed | 193 | |
Accrued fees to affiliates | 196 | |
Other accrued expenses | 76 | |
Total liabilities | 1,815 | |
Net Assets | $ | 430,480 |
See accompanying notes which are an integral part of the financial statements.
508 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 1,393 | |
Accumulated net realized gain (loss) | (650 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 6,322 | ||
Interest rate swap contracts | 491 | ||
Shares of beneficial interest | 419 | ||
Additional paid-in capital | 422,505 | ||
Net Assets | $ | 430,480 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 10.27 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 10.67 | |
Class A — Net assets | $ | 2,573,501 | |
Class A — Shares outstanding ($.01 par value) | 250,464 | ||
Net asset value per share: Class C(#) | $ | 10.26 | |
Class C — Net assets | $ | 1,479,716 | |
Class C — Shares outstanding ($.01 par value) | 144,208 | ||
Net asset value per share: Class E(#) | $ | 10.31 | |
Class E — Net assets | $ | 256,370 | |
Class E — Shares outstanding ($.01 par value) | 24,873 | ||
Net asset value per share: Class S(#) | $ | 10.28 | |
Class S — Net assets | $ | 423,484,474 | |
Class S — Shares outstanding ($.01 par value) | 41,199,898 | ||
Net asset value per share: Class T(#) | $ | 10.27 | |
Class T — Net assets | $ | 2,685,954 | |
Class T — Shares outstanding ($.01 par value) | 261,452 | ||
Amounts in thousands | |||
(•) Interest rate swap contracts - premiums paid (received) | $ | 506 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 518 | |
(a) Cash Collateral for Swaps | $ | 181 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 509
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends from affiliated funds | $ | 35 | |
Interest | 7,904 | ||
Total investment income | 7,939 | ||
Expenses | |||
Advisory fees | 871 | ||
Administrative fees | 84 | ||
Custodian fees | 52 | ||
Distribution fees - Class A | 3 | ||
Distribution fees - Class C | 6 | ||
Transfer agent fees - Class A | 2 | ||
Transfer agent fees - Class C | 1 | ||
Transfer agent fees - Class E | 8 | ||
Transfer agent fees - Class S | 337 | ||
Transfer agent fees - Class T | —** | ||
Professional fees | 36 | ||
Registration fees | 44 | ||
Shareholder servicing fees - Class C | 2 | ||
Shareholder servicing fees - Class E | 10 | ||
Trustees’ fees | 4 | ||
Printing fees | 14 | ||
Miscellaneous | 6 | ||
Expenses before reductions | 1,480 | ||
Expense reductions | (345 | ) | |
Net expenses | 1,135 | ||
Net investment income (loss) | 6,804 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | (768 | ) | |
Interest rate swap contracts | 117 | ||
Net realized gain (loss) | (651 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments | (7,251 | ) | |
Interest rate swap contracts | 401 | ||
Net change in unrealized appreciation (depreciation) | (6,850 | ) | |
Net realized and unrealized gain (loss) | (7,501 | ) | |
Net Increase (Decrease) in Net Assets from Operations | $ | (697 | ) |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
510 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 6,804 | $ | 11,066 | ||
Net realized gain (loss) | (651 | ) | 503 | |||
Net change in unrealized appreciation (depreciation) | (6,850 | ) | 11,739 | |||
Net increase (decrease) in net assets from operations | (697 | ) | 23,308 | |||
Distributions | ||||||
From net investment income | ||||||
Class A | (38 | ) | (60 | ) | ||
Class C | (22 | ) | (38 | ) | ||
Class E | (172 | ) | (629 | ) | ||
Class S | (6,365 | ) | (10,093 | ) | ||
Class T | (—)** | — | ||||
From net realized gain | ||||||
Class A | (3 | ) | (1 | ) | ||
Class C | (2 | ) | (1 | ) | ||
Class E | (28 | ) | (13 | ) | ||
Class S | (467 | ) | (190 | ) | ||
Net decrease in net assets from distributions | (7,097 | ) | (11,025 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 115,556 | 61,150 | ||||
Total Net Increase (Decrease) in Net Assets | 107,762 | 73,433 | ||||
Net Assets | ||||||
Beginning of period | 322,718 | 249,285 | ||||
End of period | $ | 430,480 | $ | 322,718 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 1,393 | $ | 1,186 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 511
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 63 | $ | 637 | 86 | $ | 895 | ||||||
Proceeds from reinvestment of distributions | 3 | 32 | 6 | 58 | ||||||||
Payments for shares redeemed | (3 | ) | (28 | ) | (19 | ) | (199 | ) | ||||
Net increase (decrease) | 63 | 641 | 73 | 754 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 42 | 425 | 290 | 3,042 | ||||||||
Proceeds from reinvestment of distributions | 2 | 23 | 4 | 38 | ||||||||
Payments for shares redeemed | (98 | ) | (991 | ) | (145 | ) | (1,517 | ) | ||||
Net increase (decrease) | (54 | ) | (543 | ) | 149 | 1,563 | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 68 | 695 | 290 | 3,038 | ||||||||
Proceeds from reinvestment of distributions | 20 | 199 | 61 | 639 | ||||||||
Payments for shares redeemed | (1,794 | ) | (18,171 | ) | (256 | ) | (2,676 | ) | ||||
Net increase (decrease) | (1,706 | ) | (17,277 | ) | 95 | 1,001 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 16,277 | 165,079 | 11,243 | 117,796 | ||||||||
Proceeds from reinvestment of distributions | 672 | 6,801 | 981 | 10,233 | ||||||||
Payments for shares redeemed | (4,117 | ) | (41,822 | ) | (6,705 | ) | (70,197 | ) | ||||
Net increase (decrease) | 12,832 | 130,058 | 5,519 | 57,832 | ||||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 262 | 2,681 | — | — | ||||||||
Proceeds from reinvestment of distributions | — | 1 | — | — | ||||||||
Payments for shares redeemed | (1 | ) | (5 | ) | — | — | ||||||
Net increase (decrease) | 261 | 2,677 | — | — | ||||||||
Total increase (decrease) | 11,396 | $ | 115,556 | 5,836 | $ | 61,150 | ||||||
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
512 Tax-Exempt High Yield Bond Fund
(This page intentionally left blank)
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 10.58 | .18 | (.29 | ) | (.11 | ) | (.18 | ) | (.02 | ) | ||||||
October 31, 2016 | 10.11 | .38 | .48 | .86 | (.38 | ) | (.01 | ) | ||||||||
October 31, 2015(7) | 10.00 | .13 | .08 | .21 | (.10 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 10.56 | .15 | (.29 | ) | (.14 | ) | (.14 | ) | (.02 | ) | ||||||
October 31, 2016 | 10.10 | .30 | .48 | .78 | (.31 | ) | (.01 | ) | ||||||||
October 31, 2015(7) | 10.00 | .12 | .06 | .18 | (.08 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 10.59 | .18 | (.29 | ) | (.11 | ) | (.15 | ) | (.02 | ) | ||||||
October 31, 2016 | 10.11 | .38 | .48 | .86 | (.37 | ) | (.01 | ) | ||||||||
October 31, 2015(7) | 10.00 | .16 | .05 | .21 | (.10 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 10.59 | .20 | (.30 | ) | (.10 | ) | (.19 | ) | (.02 | ) | ||||||
October 31, 2016 | 10.11 | .41 | .48 | .89 | (.40 | ) | (.01 | ) | ||||||||
October 31, 2015(7) | 10.00 | .15 | .07 | .22 | (.11 | ) | — | |||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 10.13 | .05 | .12 | .17 | (.03 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
514 Tax-Exempt High Yield Bond Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | |||||||||
(.20 | ) | 10.27 | (.99 | ) | 2,574 | 1.09 | .89 | 3.67 | 25 | ||||||||
(.39 | ) | 10.58 | 8.59 | 1,980 | 1.13 | .89 | 3.63 | 22 | |||||||||
(.10 | ) | 10.11 | 2.11 | 1,155 | 1.12 | .89 | 3.16 | 23 | |||||||||
(.16 | ) | 10.26 | (1.32 | ) | 1,480 | 1.84 | 1.64 | 2.92 | 25 | ||||||||
(.32 | ) | 10.56 | 7.79 | 2,096 | 1.88 | 1.64 | 2.86 | 22 | |||||||||
(.08 | ) | 10.10 | 1.82 | 498 | 1.88 | 1.64 | 2.82 | 23 | |||||||||
(.17 | ) | 10.31 | (.98 | ) | 256 | 1.08 | .88 | 3.65 | 25 | ||||||||
(.38 | ) | 10.59 | 8.68 | 18,321 | 1.13 | .89 | 3.64 | 22 | |||||||||
(.10 | ) | 10.11 | 2.13 | 16,539 | 1.15 | .89 | 3.81 | 23 | |||||||||
(.21 | ) | 10.28 | (.86 | ) | 423,484 | .84 | .64 | 3.92 | 25 | ||||||||
(.41 | ) | 10.59 | 8.95 | 300,321 | .88 | .64 | 3.89 | 22 | |||||||||
(.11 | ) | 10.11 | 2.20 | 231,093 | .88 | .64 | 3.57 | 23 | |||||||||
(.03 | ) | 10.27 | 1.71 | 2,686 | .84 | .54 | 4.17 | 25 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt High Yield Bond Fund 515
Russell Investment Company
Tax-Exempt High Yield Bond Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 106,232 |
Administration fees | 16,759 | |
Distribution fees | 1,372 | |
Shareholder servicing fees | 337 | |
Transfer agent fees | 69,336 | |
Trustee fees | 2,137 | |
$ | 196,173 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Management Fund | $ | 15,912 | $ | 123,513 | $ | 138,908 | $ | 3 | $ | (2) | $ | 518 | $ | 35 | $ | — | ||
$ | 15,912 | $ | 123,513 | $ | 138,908 | $ | 3 | $ | (2) | $ | 518 | $ | 35 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 413,823,961 | |||
Unrealized Appreciation | $ | 11,296,141 | |||
Unrealized Depreciation | (4,959,162 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 6,336,979 |
See accompanying notes which are an integral part of the financial statements.
516 Tax-Exempt High Yield Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 992.70 | $ | 1,020.78 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 4.00 | $ | 4.06 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.81% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 989.10 | $ | 1,017.26 | |
Expenses Paid During Period* | $ | 7.50 | $ | 7.60 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.52% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 992.80 | $ | 1,020.98 | |
of other funds. | Expenses Paid During Period* | $ | 3.80 | $ | 3.86 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.77% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Tax-Exempt Bond Fund 517
Russell Investment Company
Tax-Exempt Bond Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 994.10 | $ | 1,022.22 | ||
Expenses Paid During Period* | $ | 2.57 | $ | 2.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.52% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,013.10 | $ | 1,022.71 | ||
Expenses Paid During Period* | $ | 0.52 | $ | 2.11 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.42% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
0.42% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). |
518 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Municipal Bonds - 98.2% | ||||||||
Alabama - 1.8% | ||||||||
Alabama 21st Century Authority Revenue Bonds | 1,120 | 5.000 | 06/01/18 | 1,169 | ||||
Alabama 21st Century Authority Revenue Bonds | 545 | 5.000 | 06/01/20 | 604 | ||||
Alabama Public School & College Authority Revenue Bonds | 3,385 | 5.000 | 05/01/23 | 4,021 | ||||
County of Jefferson Alabama General Obligation Limited(µ) | 4,100 | 5.000 | 04/01/22 | 4,106 | ||||
County of Jefferson Alabama Sewer Revenue Bonds | 2,230 | 5.000 | 10/01/22 | 2,451 | ||||
Homewood Educational Building Authority Revenue Bonds(µ) | 485 | 5.000 | 12/01/26 | 551 | ||||
Limestone County Board of Education Special Tax(µ) | 1,000 | 5.000 | 11/01/30 | 1,143 | ||||
Limestone County Board of Education Special Tax(µ) | 1,000 | 5.000 | 11/01/31 | 1,142 | ||||
Mobile County Board of School Commissioners Revenue Bonds | 1,445 | 5.000 | 03/01/32 | 1,630 | ||||
Pell City Special Care Facilities Financing Authority Revenue Bonds | 9,000 | 5.000 | 12/01/31 | 9,853 | ||||
University of South Alabama Revenue Bonds(µ) | 1,530 | 5.000 | 11/01/24 | 1,812 | ||||
University of South Alabama Revenue Bonds(µ) | 1,695 | 5.000 | 11/01/25 | 2,019 | ||||
30,501 | ||||||||
Alaska - 0.2% | ||||||||
Alaska Industrial Development & Export Authority Revenue Bonds | 1,170 | 5.000 | 04/01/25 | 1,333 | ||||
Alaska Railroad Corp. Revenue Bonds | 500 | 5.000 | 08/01/18 | 523 | ||||
City of Valdez Alaska Revenue Bonds | 750 | 5.000 | 01/01/21 | 833 | ||||
Northern Tobacco Securitization Corp. Revenue Bonds | 350 | 5.000 | 06/01/32 | 345 | ||||
3,034 | ||||||||
Arizona - 2.1% | ||||||||
Apache County Industrial Development Authority Revenue Bonds | 3,000 | 4.500 | 03/01/30 | 3,185 | ||||
Arizona Health Facilities Authority Revenue Bonds | 2,000 | 5.250 | 01/01/18 | 2,057 | ||||
Arizona Health Facilities Authority Revenue Bonds | 2,000 | 5.000 | 02/01/18 | 2,053 | ||||
Arizona Health Facilities Authority Revenue Bonds | 2,000 | 5.250 | 01/01/22 | 2,058 | ||||
Arizona Health Facilities Authority Revenue Bonds | 2,255 | 5.000 | 02/01/34 | 2,389 | ||||
Arizona Transportation Board Revenue Bonds | 2,685 | 5.000 | 07/01/25 | 3,220 | ||||
Arizona Water Infrastructure Finance Authority Revenue Bonds | 1,000 | 5.000 | 10/01/18 | 1,057 | ||||
County of Pinal Arizona Revenue Bonds | 2,455 | 5.000 | 08/01/21 | 2,797 | ||||
County of Pinal Arizona Revenue Bonds | 1,775 | 5.000 | 08/01/25 | 2,105 | ||||
Maricopa County Pollution Control Corp. Revenue Bonds(Ê) | 2,310 | 5.200 | 06/01/43 | 2,524 | ||||
Pinal County Elementary School District No. 4 Casa Grande General Obligation | ||||||||
Unlimited(µ) | 175 | 5.000 | 07/01/20 | 194 | ||||
Pinal County Elementary School District No. 4 Casa Grande General Obligation | ||||||||
Unlimited(µ) | 275 | 5.000 | 07/01/21 | 312 | ||||
Pinal County Elementary School District No. 4 Casa Grande General Obligation | ||||||||
Unlimited(µ) | 250 | 5.000 | 07/01/27 | 302 | ||||
Pinal County Elementary School District No. 4 Casa Grande General Obligation | ||||||||
Unlimited(µ) | 125 | 5.000 | 07/01/28 | 150 | ||||
Pinal County Elementary School District No. 4 Casa Grande General Obligation | ||||||||
Unlimited(µ) | 215 | 5.000 | 07/01/29 | 256 | ||||
Pinal County Elementary School District No. 4 Casa Grande General Obligation | ||||||||
Unlimited(µ) | 765 | 5.000 | 07/01/30 | 904 | ||||
Salt River Project Agricultural Improvement & Power District Revenue Bonds | 1,635 | 5.000 | 01/01/25 | 1,743 | ||||
Salt Verde Financial Corp. Revenue Bonds | 1,045 | 5.250 | 12/01/24 | 1,234 | ||||
Student & Academic Services LLC Revenue Bonds(µ) | 200 | 5.000 | 06/01/26 | 232 | ||||
Student & Academic Services LLC Revenue Bonds(µ) | 425 | 5.000 | 06/01/27 | 492 | ||||
Student & Academic Services LLC Revenue Bonds(µ) | 390 | 5.000 | 06/01/28 | 449 | ||||
Town of Marana Arizona Revenue Bonds | 2,240 | 5.000 | 07/01/26 | 2,631 | ||||
Town of Marana Arizona Revenue Bonds | 800 | 5.000 | 07/01/27 | 939 | ||||
Town of Marana Arizona Revenue Bonds | 1,735 | 5.000 | 07/01/28 | 2,033 | ||||
35,316 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 519
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Arkansas - 0.1% | ||||||||
County of Pulaski Arkansas Revenue Bonds | 1,000 | 5.000 | 03/01/29 | 1,177 | ||||
Henderson State University Revenue Bonds(µ) | 220 | 3.000 | 11/01/18 | 226 | ||||
Pulaski County Public Facilities Board Revenue Bonds | 440 | 5.000 | 12/01/22 | 509 | ||||
1,912 | ||||||||
California - 7.3% | ||||||||
Abag Finance Authority for Nonprofit Corps. Revenue Bonds | 1,340 | 6.000 | 08/01/30 | 1,555 | ||||
Alum Rock Union Elementary School District General Obligation Unlimited(µ) | 400 | 5.000 | 08/01/20 | 446 | ||||
Alum Rock Union Elementary School District General Obligation Unlimited(µ) | 600 | 5.000 | 08/01/21 | 685 | ||||
Alum Rock Union Elementary School District General Obligation Unlimited(µ) | 2,855 | 5.000 | 08/01/32 | 3,299 | ||||
Anaheim Housing & Public Improvements Authority Revenue Bonds | 2,450 | 5.000 | 10/01/31 | 2,749 | ||||
Anaheim Housing & Public Improvements Authority Revenue Bonds | 2,000 | 5.000 | 10/01/32 | 2,238 | ||||
Brentwood Infrastructure Financing Authority Special Assessment(µ) | 1,000 | 5.000 | 09/02/29 | 1,157 | ||||
Brentwood Union School District General Obligation Unlimited | 100 | 5.000 | 08/01/28 | 121 | ||||
Brentwood Union School District General Obligation Unlimited | 110 | 5.000 | 08/01/29 | 132 | ||||
Brentwood Union School District General Obligation Unlimited | 100 | 5.000 | 08/01/30 | 119 | ||||
Brentwood Union School District General Obligation Unlimited | 200 | 5.000 | 08/01/31 | 237 | ||||
Brentwood Union School District General Obligation Unlimited | 200 | 5.000 | 08/01/32 | 235 | ||||
Brentwood Union School District General Obligation Unlimited | 250 | 5.000 | 08/01/33 | 291 | ||||
California Health Facilities Financing Authority Revenue Bonds | 1,000 | 5.000 | 02/01/25 | 1,190 | ||||
California Health Facilities Financing Authority Revenue Bonds | 1,000 | 5.000 | 02/01/26 | 1,195 | ||||
California Health Facilities Financing Authority Revenue Bonds | 1,265 | 5.000 | 02/01/27 | 1,518 | ||||
California Health Facilities Financing Authority Revenue Bonds | 1,350 | 5.000 | 02/01/28 | 1,590 | ||||
California Health Facilities Financing Authority Revenue Bonds | 1,000 | 5.000 | 11/15/29 | 1,104 | ||||
California Municipal Finance Authority Revenue Bonds | 2,500 | 5.250 | 11/01/36 | 2,776 | ||||
California State Public Works Board Revenue Bonds | 825 | 4.000 | 12/01/34 | 862 | ||||
California Statewide Communities Development Authority Revenue Bonds | 475 | 3.500 | 11/01/18 | 478 | ||||
California Statewide Communities Development Authority Revenue Bonds | 2,260 | 5.000 | 04/01/19 | 2,427 | ||||
California Statewide Communities Development Authority Revenue Bonds | 1,405 | 6.000 | 05/15/23 | 1,480 | ||||
California Statewide Communities Development Authority Revenue Bonds | 1,565 | 6.125 | 11/01/33 | 1,651 | ||||
California Statewide Communities Development Authority Revenue Bonds | 1,000 | 5.000 | 08/01/34 | 1,156 | ||||
Centinela Valley Union High School District General Obligation Unlimited | 500 | 5.750 | 08/01/27 | 622 | ||||
Centinela Valley Union High School District General Obligation Unlimited | 1,000 | 5.750 | 08/01/28 | 1,244 | ||||
Centinela Valley Union High School District General Obligation Unlimited | 650 | 5.750 | 08/01/29 | 809 | ||||
City of Fresno California Airport Revenue Bonds(µ) | 225 | 5.000 | 07/01/22 | 256 | ||||
City of Los Angeles Department of Airports Revenue Bonds | 1,655 | 5.000 | 05/15/29 | 1,837 | ||||
City of Sacramento Unified School District General Obligation Unlimited(µ) | 4,000 | 5.000 | 07/01/31 | 4,546 | ||||
City of Vallejo California Water Revenue Bonds | 2,755 | 5.250 | 05/01/27 | 3,230 | ||||
City of Vallejo California Water Revenue Bonds | 3,105 | 5.250 | 05/01/29 | 3,636 | ||||
County of Los Angeles California Certificate Of Participation | 200 | 5.000 | 09/01/20 | 224 | ||||
County of Los Angeles California Certificate Of Participation | 500 | 5.000 | 03/01/21 | 566 | ||||
County of Los Angeles California Certificate Of Participation | 125 | 5.000 | 09/01/21 | 143 | ||||
County of Los Angeles California Certificate Of Participation | 430 | 5.000 | 09/01/22 | 503 | ||||
County of Sacramento California Airport System Revenue Bonds | 2,000 | 5.000 | 07/01/22 | 2,085 | ||||
Dinuba Redevelopment Agency Tax Allocation(µ) | 590 | 5.000 | 09/01/33 | 658 | ||||
East Bay Municipal Utility District Water System Revenue Bonds(µ) | 150 | 5.000 | 06/01/17 | 151 | ||||
Emeryville Redevelopment Agency Successor Agency Tax Allocation | 1,980 | 5.000 | 09/01/20 | 2,209 | ||||
Florin Resource Conservation District Revenue Bonds(µ) | 300 | 4.000 | 09/01/17 | 303 | ||||
Florin Resource Conservation District Revenue Bonds(µ) | 455 | 4.000 | 09/01/18 | 474 |
See accompanying notes which are an integral part of the financial statements.
520 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Florin Resource Conservation District Revenue Bonds(µ) | 450 | 5.000 | 09/01/24 | 535 | ||||
Golden State Tobacco Securitization Corp. Revenue Bonds(µ) | 750 | 4.600 | 06/01/23 | 778 | ||||
Hollister Joint Powers Financing Authority Wastewater Revenue Bonds(µ) | 1,000 | 5.000 | 06/01/36 | 1,138 | ||||
Inglewood Redevelopment Agency Successor Agency Tax Allocation(µ) | 350 | 5.000 | 05/01/27 | 419 | ||||
Inglewood Redevelopment Agency Successor Agency Tax Allocation(µ) | 1,000 | 5.000 | 05/01/33 | 1,146 | ||||
Jurupa California Public Authority Special Tax Revenue Bonds | 425 | 3.500 | 09/01/17 | 428 | ||||
Modesto Irrigation District Revenue Bonds | 1,425 | 5.000 | 07/01/17 | 1,435 | ||||
Oxnard Financing Authority Revenue Bonds(µ) | 740 | 5.000 | 06/01/21 | 837 | ||||
Oxnard Financing Authority Revenue Bonds(µ) | 775 | 5.000 | 06/01/34 | 862 | ||||
Oxnard School District General Obligation Unlimited(µ) | 810 | 5.250 | 08/01/28 | 979 | ||||
Oxnard School District General Obligation Unlimited(µ) | 325 | 5.250 | 08/01/29 | 389 | ||||
Pajaro Valley Water Management Agency Revenue Bonds(µ) | 775 | 4.000 | 03/01/18 | 795 | ||||
Palomar Health General Obligation Unlimited | 2,230 | 5.000 | 08/01/29 | 2,594 | ||||
Riverside County Public Financing Authority Tax Allocation(µ) | 2,270 | 5.000 | 10/01/27 | 2,659 | ||||
San Francisco City & County Public Utilities Commission Water Revenue Bonds | 2,685 | 5.000 | 11/01/27 | 3,098 | ||||
San Joaquin Hills Transportation Corridor Agency Revenue Bonds | 9,585 | 5.000 | 01/15/29 | 10,831 | ||||
San Ysidro School District Certificate Of Participation(µ) | 1,175 | 5.000 | 09/01/28 | 1,355 | ||||
Shasta Lake Public Finance Authority Tax Allocation(µ) | 385 | 5.000 | 12/01/25 | 466 | ||||
South Orange County Public Financing Authority Special Tax | 900 | 5.000 | 08/15/29 | 984 | ||||
Southern California Public Power Authority Revenue Bonds | 1,500 | 5.000 | 07/01/18 | 1,570 | ||||
Southern California Public Power Authority Revenue Bonds | 1,000 | 5.000 | 07/01/23 | 1,117 | ||||
State of California Department of Water Resources Power Supply Revenue Bonds | 1,000 | 5.000 | 05/01/17 | 1,000 | ||||
State of California Department of Water Resources Revenue Bonds(ae) | 860 | 5.000 | 06/01/18 | 898 | ||||
State of California Department of Water Resources Revenue Bonds | 140 | 5.000 | 12/01/21 | 146 | ||||
State of California General Obligation Unlimited(ae) | 635 | 5.250 | 07/01/19 | 693 | ||||
State of California General Obligation Unlimited | 2,000 | 5.000 | 02/01/20 | 2,210 | ||||
State of California General Obligation Unlimited | 2,500 | 5.500 | 04/01/21 | 2,709 | ||||
State of California General Obligation Unlimited | 365 | 5.250 | 07/01/21 | 398 | ||||
State of California General Obligation Unlimited | 1,000 | 5.250 | 03/01/22 | 1,114 | ||||
State of California General Obligation Unlimited | 7,095 | 5.000 | 11/01/25 | 8,423 | ||||
State of California General Obligation Unlimited | 5,760 | 5.000 | 03/01/26 | 6,909 | ||||
State of California General Obligation Unlimited | 2,500 | 5.250 | 09/01/28 | 2,881 | ||||
State of California General Obligation Unlimited | 2,685 | 5.000 | 10/01/29 | 2,774 | ||||
State of California General Obligation Unlimited | 450 | 5.000 | 02/01/31 | 510 | ||||
Tuolumne Wind Project Authority Revenue Bonds | 1,500 | 5.000 | 01/01/18 | 1,541 | ||||
Watereuse Finance Authority Revenue Bonds | 1,230 | 5.500 | 05/01/36 | 1,472 | ||||
122,280 | ||||||||
Colorado - 2.3% | ||||||||
Centerra Metropolitan District No. 1 Tax Allocation | 1,200 | 5.000 | 12/01/29 | 1,278 | ||||
City & County of Denver Colorado Airport System Revenue Bonds | 1,965 | 5.000 | 11/15/25 | 2,277 | ||||
City of Colorado Springs Colorado Utilities System Revenue Bonds | 4,000 | 5.000 | 11/15/18 | 4,245 | ||||
Colorado Educational & Cultural Facilities Authority Revenue Bonds | 2,000 | 5.000 | 04/01/18 | 2,070 | ||||
Colorado Educational & Cultural Facilities Authority Revenue Bonds | 1,220 | 5.000 | 10/01/20 | 1,332 | ||||
Colorado Educational & Cultural Facilities Authority Revenue Bonds | 1,000 | 5.000 | 08/15/30 | 1,089 | ||||
Colorado Educational & Cultural Facilities Authority Revenue Bonds | 850 | 5.000 | 12/01/31 | 932 | ||||
Colorado Health Facilities Authority Revenue Bonds | 255 | 5.250 | 06/01/23 | 255 | ||||
Colorado Health Facilities Authority Revenue Bonds | 1,500 | 5.000 | 09/01/30 | 1,720 | ||||
Colorado Health Facilities Authority Revenue Bonds | 685 | 5.250 | 02/01/31 | 724 | ||||
Denver Health & Hospital Authority Revenue Bonds | 525 | 4.250 | 12/01/33 | 536 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 521
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Denver Urban Renewal Authority Tax Allocation | 1,575 | 5.000 | 12/01/21 | 1,811 | ||||
Dominion Water & Sanitation District Revenue Bonds | 5,500 | 5.250 | 12/01/27 | 5,625 | ||||
E-470 Public Highway Authority Revenue Bonds | 2,250 | 5.375 | 09/01/26 | 2,419 | ||||
Eaton Area Park & Recreation District General Obligation Limited | 470 | 5.500 | 12/01/30 | 511 | ||||
Park 70 Metropolitan District General Obligation Unlimited | 165 | 5.000 | 12/01/19 | 177 | ||||
Park 70 Metropolitan District General Obligation Unlimited | 195 | 5.000 | 12/01/20 | 212 | ||||
Park Creek Metropolitan District General Obligation Limited(µ) | 1,150 | 5.000 | 12/01/28 | 1,339 | ||||
Park Creek Metropolitan District General Obligation Limited(µ) | 510 | 5.000 | 12/01/29 | 589 | ||||
Park Creek Metropolitan District Revenue Bonds | 1,860 | 4.000 | 12/01/20 | 1,965 | ||||
Regional Transportation District Certificate Of Participation | 6,725 | 5.000 | 06/01/27 | 7,811 | ||||
38,917 | ||||||||
Connecticut - 1.6% | ||||||||
City of Bridgeport Connecticut General Obligation Unlimited(µ) | 965 | 5.000 | 07/01/29 | 1,098 | ||||
City of Hartford Connecticut General Obligation Unlimited(µ) | 155 | 5.000 | 08/15/22 | 175 | ||||
City of New Haven Connecticut General Obligation Unlimited(µ) | 2,000 | 5.000 | 08/01/21 | 2,221 | ||||
City of New Haven Connecticut General Obligation Unlimited(µ) | 1,915 | 5.000 | 09/01/30 | 2,130 | ||||
Connecticut State Health & Educational Facility Authority Revenue Bonds | 2,500 | 5.000 | 07/01/25 | 2,619 | ||||
State of Connecticut General Obligation Unlimited | 6,500 | 5.000 | 11/15/21 | 7,383 | ||||
State of Connecticut General Obligation Unlimited | 5,685 | 5.000 | 11/15/22 | 6,568 | ||||
State of Connecticut Special Tax Revenue Bonds | 4,470 | 5.000 | 10/01/25 | 5,220 | ||||
27,414 | ||||||||
District of Columbia - 0.2% | ||||||||
District of Columbia Revenue Bonds | 2,000 | 5.000 | 06/01/36 | 2,054 | ||||
Metropolitan Washington Airports Authority Revenue Bonds | 1,205 | 5.000 | 10/01/35 | 1,327 | ||||
3,381 | ||||||||
Florida - 7.4% | ||||||||
Capital Projects Finance Authority Revenue Bonds(µ) | 220 | 5.125 | 10/01/21 | 221 | ||||
Central Florida Expressway Authority Revenue Bonds | 3,250 | 5.000 | 07/01/33 | 3,733 | ||||
Citizens Property Insurance Corp. Revenue Bonds | 2,500 | 5.000 | 06/01/18 | 2,605 | ||||
Citizens Property Insurance Corp. Revenue Bonds | 2,495 | 5.000 | 06/01/19 | 2,695 | ||||
Citizens Property Insurance Corp. Revenue Bonds | 2,500 | 5.000 | 06/01/20 | 2,770 | ||||
Citizens Property Insurance Corp. Revenue Bonds | 7,385 | 5.000 | 06/01/22 | 8,554 | ||||
City of Lakeland Florida Department of Electric Utilities Revenue Bonds(µ) | 2,000 | 5.000 | 10/01/17 | 2,034 | ||||
City of Miami Beach Florida Parking Revenue Bonds(µ) | 395 | 5.000 | 09/01/32 | 443 | ||||
City of Miami Beach Florida Parking Revenue Bonds(µ) | 1,755 | 5.000 | 09/01/33 | 1,960 | ||||
City of North Port Florida Special Assessment(µ) | 715 | 5.000 | 07/01/25 | 828 | ||||
City of North Port Florida Special Assessment(µ) | 1,135 | 5.000 | 07/01/26 | 1,312 | ||||
City of Tallahassee Florida Revenue Bonds | 500 | 5.000 | 12/01/27 | 566 | ||||
City of Tallahassee Florida Revenue Bonds | 650 | 5.000 | 12/01/28 | 730 | ||||
Collier County Industrial Development Authority Revenue Bonds | 1,695 | 5.500 | 10/01/26 | 1,905 | ||||
County of Miami-Dade Florida Aviation Revenue Bonds | 935 | 5.250 | 10/01/30 | 1,049 | ||||
County of Miami-Dade Florida Revenue Bonds | 3,000 | 5.000 | 10/01/28 | 3,420 | ||||
County of Miami-Dade Florida Revenue Bonds | 3,600 | 5.000 | 10/01/29 | 4,096 | ||||
County of Miami-Dade Florida Revenue Bonds(µ) | 4,310 | Zero coupon | 10/01/35 | 1,850 | ||||
County of Orange Florida Sales Tax Revenue Bonds | 8,885 | 5.000 | 01/01/20 | 9,771 | ||||
Escambia County Health Facilities Authority Revenue Bonds | 2,345 | 6.000 | 08/15/36 | 2,596 | ||||
Florida Municipal Power Agency Revenue Bonds | 4,660 | 5.000 | 10/01/28 | 5,541 | ||||
JEA Electric System Revenue Bonds | 1,000 | 5.000 | 10/01/17 | 1,017 | ||||
JEA Electric System Revenue Bonds | 645 | 5.000 | 10/01/20 | 722 | ||||
Kissimmee Utility Authority Revenue Bonds(µ) | 1,000 | 5.000 | 10/01/17 | 1,017 |
See accompanying notes which are an integral part of the financial statements.
522 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Miami Beach Health Facilities Authority Revenue Bonds | 5,930 | 5.000 | 11/15/29 | 6,445 | ||||
Miami-Dade County Expressway Authority Revenue Bonds | 350 | 5.000 | 07/01/18 | 366 | ||||
Miami-Dade County Expressway Authority Revenue Bonds | 1,400 | 5.000 | 07/01/31 | 1,620 | ||||
Mid-Bay Bridge Authority Revenue Bonds | 455 | 5.000 | 10/01/23 | 530 | ||||
Mid-Bay Bridge Authority Revenue Bonds | 2,500 | 7.250 | 10/01/34 | 3,104 | ||||
Orange County Health Facilities Authority Revenue Bonds | 3,000 | 5.000 | 10/01/39 | 3,317 | ||||
Orlando Utilities Commission Revenue Bonds | 3,000 | 5.000 | 10/01/19 | 3,272 | ||||
Orlando-Orange County Expressway Authority Revenue Bonds | 4,145 | 5.000 | 07/01/20 | 4,605 | ||||
Palm Beach County Health Facilities Authority Revenue Bonds | 1,000 | 3.000 | 12/01/17 | 1,008 | ||||
Reedy Creek Improvement District General Obligation Limited | 850 | 5.000 | 06/01/20 | 943 | ||||
Reedy Creek Improvement District General Obligation Limited | 5,000 | 5.000 | 06/01/25 | 5,876 | ||||
Reedy Creek Improvement District General Obligation Limited | 4,870 | 5.000 | 06/01/26 | 5,687 | ||||
South Miami Health Facilities Authority Revenue Bonds | 750 | 5.000 | 08/15/18 | 759 | ||||
State of Florida General Obligation Unlimited | 11,000 | 5.000 | 06/01/21 | 12,583 | ||||
State of Florida General Obligation Unlimited | 2,990 | 5.000 | 06/01/22 | 3,498 | ||||
Tampa Sports Authority Revenue Bonds | 6,790 | 5.000 | 01/01/22 | 7,790 | ||||
Volusia County School Board Certificate Of Participation(µ) | 1,730 | 5.000 | 08/01/32 | 1,971 | ||||
124,809 | ||||||||
Georgia - 1.7% | ||||||||
City of Atlanta Department of Aviation Revenue Bonds | 2,500 | 5.000 | 01/01/20 | 2,751 | ||||
City of Atlanta Department of Aviation Revenue Bonds | 825 | 5.250 | 01/01/30 | 931 | ||||
City of Atlanta Georgia General Obligation Limited | 3,415 | 5.000 | 12/01/21 | 3,953 | ||||
City of Atlanta Georgia Water & Wastewater Revenue Bonds(µ) | 2,000 | 5.500 | 11/01/23 | 2,213 | ||||
City of Atlanta Georgia Water & Wastewater Revenue Bonds | 1,300 | 6.000 | 11/01/25 | 1,456 | ||||
Glynn-Brunswick Memorial Hospital Authority Revenue Bonds | 1,000 | 5.000 | 08/01/21 | 1,129 | ||||
Glynn-Brunswick Memorial Hospital Authority Revenue Bonds | 1,220 | 5.000 | 08/01/22 | 1,401 | ||||
Heard County Development Authority Revenue Bonds | 400 | 1.200 | 09/01/29 | 400 | ||||
Monroe County Development Authority Revenue Bonds | 12,350 | 1.250 | 07/01/49 | 12,350 | ||||
Savannah Hospital Authority Revenue Bonds | 1,000 | 5.500 | 07/01/28 | 1,172 | ||||
27,756 | ||||||||
Guam - 1.6% | ||||||||
Government of Guam Revenue Bonds | 1,835 | 5.000 | 12/01/28 | 2,062 | ||||
Guam Government Waterworks Authority Revenue Bonds | 1,240 | 5.000 | 07/01/28 | 1,361 | ||||
Guam Government Waterworks Authority Revenue Bonds | 5,200 | 5.000 | 07/01/29 | 5,677 | ||||
Guam Power Authority Revenue Bonds(µ) | 2,190 | 5.000 | 10/01/24 | 2,475 | ||||
Guam Power Authority Revenue Bonds | 2,500 | 5.500 | 10/01/30 | 2,667 | ||||
Guam Power Authority Revenue Bonds | 1,000 | 5.000 | 10/01/34 | 1,038 | ||||
Territory of Guam Revenue Bonds | 250 | 5.000 | 12/01/19 | 269 | ||||
Territory of Guam Revenue Bonds | 400 | 5.000 | 12/01/21 | 446 | ||||
Territory of Guam Revenue Bonds | 500 | 5.000 | 12/01/23 | 570 | ||||
Territory of Guam Revenue Bonds | 500 | 5.375 | 12/01/24 | 553 | ||||
Territory of Guam Revenue Bonds | 4,675 | 5.000 | 12/01/29 | 5,218 | ||||
Territory of Guam Revenue Bonds | 3,900 | 5.000 | 01/01/31 | 4,076 | ||||
Territory of Guam Revenue Bonds | 785 | 5.000 | 01/01/32 | 818 | ||||
27,230 | ||||||||
Idaho - 0.5% | ||||||||
Idaho Health Facilities Authority Revenue Bonds | 1,000 | 5.000 | 09/01/28 | 1,088 | ||||
Idaho Health Facilities Authority Revenue Bonds | 710 | 5.000 | 09/01/29 | 764 | ||||
Idaho Health Facilities Authority Revenue Bonds | 1,500 | 5.000 | 12/01/30 | 1,686 | ||||
Idaho Housing & Finance Association Revenue Bonds(µ) | 1,330 | 5.250 | 07/15/21 | 1,398 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 523
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Idaho Housing & Finance Association Revenue Bonds | 1,670 | 5.000 | 07/15/31 | 1,906 | ||||
Idaho State Building Authority Revenue Bonds | 940 | 5.000 | 09/01/23 | 1,064 | ||||
7,906 | ||||||||
Illinois - 10.1% | ||||||||
Chicago Board of Education Capital Improvement Tax Bonds | 10,000 | 5.750 | 04/01/33 | 10,265 | ||||
Chicago Board of Education General Obligation Unlimited(µ) | 1,405 | 5.000 | 12/01/19 | 1,411 | ||||
Chicago Board of Education General Obligation Unlimited(µ) | 2,120 | 5.000 | 12/01/27 | 2,167 | ||||
Chicago Board of Education General Obligation Unlimited(µ) | 1,750 | Zero coupon | 12/01/30 | 930 | ||||
Chicago Midway International Airport Revenue Bonds | 4,435 | 5.000 | 01/01/34 | 4,930 | ||||
Chicago O'Hare International Airport Revenue Bonds | 9,750 | 5.000 | 01/01/33 | 11,021 | ||||
Chicago Public Building Commission Revenue Bonds(µ) | 1,830 | 5.250 | 12/01/18 | 1,926 | ||||
City of Chicago General Obligation Unlimited(µ) | 7,600 | 5.250 | 01/01/31 | 8,252 | ||||
City of Chicago Illinois General Obligation Unlimited | 1,115 | 5.000 | 01/01/19 | 1,132 | ||||
City of Chicago Illinois General Obligation Unlimited(µ) | 575 | 5.000 | 12/01/19 | 576 | ||||
City of Chicago Illinois General Obligation Unlimited(µ) | 30 | 5.000 | 01/01/20 | 30 | ||||
City of Chicago Illinois General Obligation Unlimited(µ) | 250 | 4.250 | 01/01/21 | 251 | ||||
City of Chicago Illinois General Obligation Unlimited(µ) | 2,535 | 4.250 | 12/01/21 | 2,541 | ||||
City of Chicago Illinois General Obligation Unlimited | 1,600 | 5.000 | 01/01/24 | 1,609 | ||||
City of Chicago Illinois General Obligation Unlimited(µ) | 2,275 | 5.250 | 01/01/24 | 2,325 | ||||
City of Chicago Illinois General Obligation Unlimited | 1,000 | 6.000 | 01/01/38 | 1,045 | ||||
City of Chicago Illinois Midway Airport Revenue Bonds | 940 | 5.000 | 01/01/30 | 1,064 | ||||
City of Chicago Illinois Motor Fuel Tax Revenue Bonds | 1,560 | 5.000 | 01/01/28 | 1,620 | ||||
City of Chicago Illinois Motor Fuel Tax Revenue Bonds | 725 | 5.000 | 01/01/29 | 748 | ||||
City of Chicago Illinois Revenue Bonds | 500 | 5.250 | 01/01/38 | 519 | ||||
City of Chicago Illinois Wastewater Transmission Revenue Bonds | 625 | 5.000 | 01/01/18 | 638 | ||||
City of Chicago Illinois Wastewater Transmission Revenue Bonds | 505 | 5.000 | 01/01/29 | 551 | ||||
City of Chicago Illinois Wastewater Transmission Revenue Bonds | 1,630 | 5.000 | 01/01/35 | 1,739 | ||||
City of Chicago Illinois Waterworks Revenue Bonds | 1,000 | 5.000 | 11/01/34 | 1,078 | ||||
City of Chicago Illinois Waterworks Revenue Bonds(µ) | 100 | 5.000 | 11/01/24 | 100 | ||||
City of Chicago Waterworks Revenue Bonds | 1,000 | 5.000 | 11/01/18 | 1,053 | ||||
City of Freeport Illinois General Obligation Unlimited(µ) | 650 | 2.000 | 12/01/18 | 656 | ||||
City of Springfield Illinois Electric Revenue Bonds | 1,280 | 5.000 | 03/01/32 | 1,423 | ||||
Cook County Community College District No. 508 General Obligation Unlimited | 1,500 | 5.250 | 12/01/28 | 1,642 | ||||
County of Cook Illinois General Obligation Unlimited | 350 | 5.000 | 11/15/21 | 390 | ||||
County of Du Page Illinois General Obligation Limited | 600 | 5.000 | 01/01/28 | 710 | ||||
Illinois Finance Authority Revenue Bonds | 1,000 | 5.000 | 11/15/18 | 1,057 | ||||
Illinois Finance Authority Revenue Bonds | 1,000 | 5.375 | 10/01/23 | 1,082 | ||||
Illinois Finance Authority Revenue Bonds | 1,000 | 5.375 | 10/01/24 | 1,082 | ||||
Illinois Finance Authority Revenue Bonds | 1,000 | 6.000 | 10/01/28 | 1,050 | ||||
Illinois Finance Authority Revenue Bonds | 3,000 | 5.000 | 01/01/29 | 3,400 | ||||
Illinois Finance Authority Revenue Bonds | 2,500 | 5.750 | 08/15/29 | 2,807 | ||||
Illinois Finance Authority Revenue Bonds(Ê) | 10,350 | 0.610 | 10/01/29 | 10,350 | ||||
Illinois Health Facilities Authority Revenue Bonds | 5,000 | 0.880 | 10/01/22 | 5,000 | ||||
Illinois Sports Facilities Authority Revenue Bonds(µ) | 1,000 | 5.250 | 06/15/31 | 1,092 | ||||
Illinois State Toll Highway Authority Revenue Bonds | 5,000 | 5.000 | 12/01/32 | 5,708 | ||||
Kendall County Forest Preserve District General Obligation Unlimited(µ) | 1,000 | 5.000 | 01/01/20 | 1,088 | ||||
McHenry & Kane Counties Community Consolidated School District No. 158 Huntley | ||||||||
General Obligation Unlimited(µ) | 1,000 | 2.092 | 01/01/21 | 927 | ||||
McHenry County Community Unit School District No. 12 Johnsburg General Obligation | ||||||||
Unlimited(µ) | 850 | 5.000 | 01/01/33 | 923 |
See accompanying notes which are an integral part of the financial statements.
524 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Metropolitan Pier & Exposition Authority Revenue Bonds | 1,500 | 5.000 | 12/15/22 | 1,509 | ||||
Metropolitan Pier & Exposition Authority Revenue Bonds | 8,565 | 5.000 | 12/15/28 | 9,022 | ||||
Monroe & St. Clair Counties Community Unite School District No. 5 General Obligation | ||||||||
Unlimited(µ) | 375 | 5.000 | 04/15/27 | 440 | ||||
Monroe & St. Clair Counties Community Unite School District No. 5 General Obligation | ||||||||
Unlimited(µ) | 500 | 5.000 | 04/15/30 | 573 | ||||
Northern Illinois Municipal Power Agency Revenue Bonds | 345 | 5.000 | 12/01/26 | 405 | ||||
Railsplitter Tobacco Settlement Authority Revenue Bonds | 1,500 | 5.000 | 06/01/18 | 1,557 | ||||
Railsplitter Tobacco Settlement Authority Revenue Bonds | 1,000 | 5.000 | 06/01/19 | 1,069 | ||||
Southern Illinois University Revenue Bonds(µ) | 1,470 | 5.000 | 04/01/27 | 1,613 | ||||
Southern Illinois University Revenue Bonds(µ) | 850 | 5.000 | 04/01/28 | 929 | ||||
Southwestern Illinois Development Authority Revenue Bonds(µ) | 1,005 | 5.000 | 10/15/33 | 1,107 | ||||
State of Illinois General Obligation Unlimited | 2,000 | 5.000 | 04/01/21 | 2,110 | ||||
State of Illinois General Obligation Unlimited | 3,000 | 5.000 | 07/01/21 | 3,169 | ||||
State of Illinois General Obligation Unlimited | 1,000 | 5.000 | 08/01/22 | 1,058 | ||||
State of Illinois General Obligation Unlimited | 2,500 | 5.000 | 02/01/24 | 2,648 | ||||
State of Illinois General Obligation Unlimited | 2,290 | 5.000 | 08/01/25 | 2,371 | ||||
State of Illinois General Obligation Unlimited(µ) | 4,500 | 4.000 | 02/01/30 | 4,551 | ||||
State of Illinois General Obligation Unlimited | 2,175 | 5.000 | 05/01/30 | 2,214 | ||||
State of Illinois Revenue Bonds | 12,500 | 5.000 | 06/15/21 | 14,085 | ||||
State of Illinois Sports Facilities Authority Revenue Bonds | 1,125 | 5.000 | 06/15/18 | 1,164 | ||||
State of Illinois Sports Facilities Authority Revenue Bonds | 500 | 5.000 | 06/15/19 | 522 | ||||
University of Illinois Revenue Bonds | 1,115 | 5.000 | 04/01/20 | 1,214 | ||||
University of Illinois Revenue Bonds | 1,470 | 5.500 | 04/01/31 | 1,636 | ||||
Village of Bellwood Illinois General Obligation Unlimited | 1,000 | 5.875 | 12/01/27 | 1,144 | ||||
Village of Bellwood Illinois General Obligation Unlimited(µ) | 2,075 | 5.000 | 12/01/32 | 2,292 | ||||
Village of Bourbonnais Industrial Project Revenue Bonds | 480 | 6.000 | 11/01/35 | 504 | ||||
Village of East Dundee Illinois General Obligation Unlimited(µ) | 600 | 4.000 | 12/01/23 | 660 | ||||
Village of Franklin Park Illinois General Obligation Unlimited(µ) | 295 | 5.000 | 07/01/18 | 308 | ||||
Village of Melrose Park Illinois General Obligation Unlimited(µ) | 530 | 2.000 | 12/15/17 | 533 | ||||
Volo Village Special Service Area No. 3 & 6 Special Tax(µ) | 1,095 | 5.000 | 03/01/34 | 1,212 | ||||
West Chicago Park District General Obligation Unlimited(µ) | 795 | 5.250 | 12/01/29 | 876 | ||||
Western Illinois Economic Development Authority Revenue Bonds(µ) | 1,140 | 5.000 | 01/01/27 | 1,287 | ||||
Western Illinois Economic Development Authority Revenue Bonds(µ) | 725 | 5.000 | 01/01/28 | 815 | ||||
Western Illinois University Revenue Bonds(µ) | 485 | 5.000 | 04/01/21 | 533 | ||||
Western Illinois University Revenue Bonds(µ) | 560 | 5.000 | 04/01/24 | 633 | ||||
Williamson Jackson, Perry, Randolph Counties Community College Dist No. 530 | ||||||||
General Obligation Unlimited(µ) | 985 | 5.000 | 12/01/24 | 1,150 | ||||
Williamson Jackson, Perry, Randolph Counties Community College Dist No. 530 | ||||||||
General Obligation Unlimited(µ) | 1,550 | 5.000 | 12/01/25 | 1,816 | ||||
Williamson Jackson, Perry, Randolph Counties Community College Dist No. 530 | ||||||||
General Obligation Unlimited(µ) | 1,030 | 5.000 | 12/01/26 | 1,212 | ||||
169,849 | ||||||||
Indiana - 1.8% | ||||||||
City of Indianapolis Indiana Gas Utility Revenue Bonds(µ) | 1,000 | 5.000 | 08/15/23 | 1,105 | ||||
Indiana Finance Authority Revenue Bonds(Ê) | 27,900 | 0.530 | 11/01/39 | 27,900 | ||||
Indianapolis Local Public Improvement Bond Bank Revenue Bonds | 1,000 | 5.000 | 02/01/18 | 1,031 | ||||
30,036 | ||||||||
Iowa - 0.7% | ||||||||
City of Ames Iowa Revenue Bonds | 2,000 | 5.000 | 06/15/31 | 2,256 | ||||
Iowa Finance Authority Revenue Bonds | 4,000 | 5.000 | 07/01/28 | 4,541 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 525
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Iowa Higher Education Loan Authority Revenue Bonds | 1,625 | 5.000 | 12/01/18 | 1,725 | ||||
Xenia Rural Water District Revenue Bonds | 3,000 | 5.000 | 12/01/28 | 3,400 | ||||
11,922 | ||||||||
Kansas - 0.3% | ||||||||
Seward County Unified School District No. 480 Liberal General Obligation Unlimited | 4,000 | 5.000 | 09/01/30 | 4,607 | ||||
Kentucky - 0.5% | ||||||||
City of Murray Kentucky Revenue Bonds | 275 | 2.000 | 08/01/17 | 276 | ||||
City of Murray Kentucky Revenue Bonds | 420 | 2.000 | 08/01/18 | 420 | ||||
Commonwealth of Kentucky Certificate Of Participation | 275 | 2.000 | 06/15/17 | 275 | ||||
Kentucky Economic Development Finance Authority Revenue Bonds | 2,000 | 3.000 | 05/15/22 | 1,967 | ||||
Kentucky Economic Development Finance Authority Revenue Bonds | 2,035 | 4.000 | 07/01/31 | 2,043 | ||||
Kentucky Municipal Power Agency Revenue Bonds(µ) | 1,500 | 5.000 | 09/01/19 | 1,617 | ||||
Louisville/Jefferson County Metropolitan Government Revenue Bonds | 2,100 | 5.000 | 10/01/33 | 2,331 | ||||
8,929 | ||||||||
Louisiana - 2.4% | ||||||||
City of New Orleans Louisiana Sewerage Service Revenue Bonds | 1,000 | 5.000 | 06/01/35 | 1,108 | ||||
City of Shreveport Louisiana Water & Sewer Revenue Bonds(µ) | 2,955 | 5.000 | 12/01/32 | 3,370 | ||||
City of Shreveport Louisiana Water & Sewer Revenue Bonds(µ) | 1,000 | 5.000 | 12/01/33 | 1,135 | ||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue Bonds(Ê) | 5,800 | 0.700 | 12/01/40 | 5,800 | ||||
Lafayette Consolidated Government Revenue Bonds(µ) | 805 | 5.000 | 11/01/20 | 898 | ||||
Lafayette Consolidated Government Revenue Bonds(µ) | 700 | 5.000 | 11/01/29 | 797 | ||||
Louisiana Local Government Environmental Facilities & Community Development | ||||||||
Authority Revenue Bonds(µ) | 610 | 5.000 | 08/01/22 | 688 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 1,000 | 5.000 | 07/01/19 | 1,076 | ||||
Louisiana Public Facilities Authority Revenue Bonds(Ê) | 10,320 | 0.870 | 04/02/23 | 10,320 | ||||
Louisiana Public Facilities Authority Revenue Bonds(µ) | 1,615 | 5.000 | 09/01/29 | 1,841 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 50 | 5.000 | 05/15/30 | 57 | ||||
Louisiana Public Facilities Authority Revenue Bonds | 595 | 5.000 | 11/01/33 | 642 | ||||
Louisiana State Citizens Property Insurance Corp. Revenue Bonds(µ) | 2,460 | 6.750 | 06/01/26 | 2,613 | ||||
State of Louisiana Gasoline & Fuels Tax Revenue Bonds | 7,000 | 5.000 | 05/01/21 | 7,979 | ||||
State of Louisiana General Obligation Unlimited | 850 | 5.000 | 08/01/24 | 1,008 | ||||
State of Louisiana Revenue Bonds | 1,300 | 5.000 | 06/15/28 | 1,517 | ||||
40,849 | ||||||||
Maryland - 0.8% | ||||||||
County of Prince George's Revenue Bonds | 575 | 5.000 | 04/01/18 | 591 | ||||
County of Prince George's Revenue Bonds | 1,175 | 5.000 | 04/01/19 | 1,240 | ||||
Maryland Economic Development Corp. Revenue Bonds | 1,155 | 5.125 | 06/01/20 | 1,242 | ||||
Maryland Economic Development Corp. Revenue Bonds | 885 | 6.200 | 09/01/22 | 964 | ||||
Maryland Health & Higher Educational Facilities Authority Revenue Bonds(Ê) | 9,200 | 0.510 | 04/01/35 | 9,200 | ||||
13,237 | ||||||||
Massachusetts - 1.5% | ||||||||
City of Boston General Obligation Unlimited | 2,000 | 5.000 | 04/01/25 | 2,452 | ||||
Commonwealth of Massachusetts General Obligation Limited(µ)(Ê) | 3,000 | 0.480 | 12/01/30 | 2,745 | ||||
Commonwealth of Massachusetts Revenue Bonds | 4,000 | 5.000 | 06/15/20 | 4,465 | ||||
Massachusetts Clean Water Trust (The) Revenue Bonds | 3,795 | 5.000 | 02/01/23 | 4,512 | ||||
Massachusetts Clean Water Trust (The) Revenue Bonds(Ê) | 5,000 | 2.012 | 08/01/23 | 5,047 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 1,675 | 5.000 | 07/01/31 | 1,854 | ||||
Massachusetts Development Finance Agency Revenue Bonds | 3,665 | 5.000 | 07/01/34 | 4,101 | ||||
25,176 | ||||||||
Michigan - 3.3% |
See accompanying notes which are an integral part of the financial statements.
526 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Brighton Area School District General Obligation Unlimited | 1,525 | 5.000 | 05/01/26 | 1,749 | ||||
City of Detroit Michigan Sewage Disposal System Revenue Bonds | 3,500 | 5.000 | 07/01/32 | 3,867 | ||||
County of Wayne Michigan General Obligation Limited(µ) | 3,000 | 5.000 | 02/01/34 | 3,021 | ||||
Detroit City School District General Obligation Unlimited(µ) | 1,000 | 6.000 | 05/01/19 | 1,085 | ||||
Grand Rapids Public Schools General Obligation Unlimited(µ) | 2,430 | 5.000 | �� | 05/01/34 | 2,753 | |||
Grand Rapids Public Schools General Obligation Unlimited(µ) | 1,000 | 5.000 | 05/01/35 | 1,128 | ||||
Kalamazoo Hospital Finance Authority Revenue Bonds | 1,500 | 4.000 | 05/15/31 | 1,546 | ||||
Kent Hospital Finance Authority Revenue Bonds | 1,505 | 5.000 | 11/15/19 | 1,639 | ||||
Michigan Finance Authority Revenue Bonds | 450 | 5.000 | 07/01/19 | 484 | ||||
Michigan Finance Authority Revenue Bonds | 600 | 5.000 | 12/01/20 | 649 | ||||
Michigan Finance Authority Revenue Bonds | 730 | 5.000 | 12/01/21 | 800 | ||||
Michigan Finance Authority Revenue Bonds | 770 | 5.000 | 12/01/22 | 852 | ||||
Michigan Finance Authority Revenue Bonds | 655 | 5.000 | 12/01/23 | 729 | ||||
Michigan Finance Authority Revenue Bonds | 2,000 | 5.000 | 04/01/25 | 2,297 | ||||
Michigan Finance Authority Revenue Bonds | 4,655 | 5.000 | 07/01/28 | 5,184 | ||||
Michigan Finance Authority Revenue Bonds | 1,375 | 5.000 | 07/01/29 | 1,521 | ||||
Michigan Finance Authority Revenue Bonds | 3,000 | 5.000 | 11/15/29 | 3,419 | ||||
Michigan Finance Authority Revenue Bonds | 1,000 | 5.000 | 07/01/30 | 1,120 | ||||
Michigan Finance Authority Revenue Bonds | 5,000 | 5.000 | 11/15/31 | 5,699 | ||||
Michigan Finance Authority Revenue Bonds | 500 | 5.000 | 07/01/35 | 552 | ||||
Michigan Finance Authority Revenue Bonds | 1,500 | 4.000 | 11/15/36 | 1,506 | ||||
Michigan Finance Authority Revenue Bonds | 585 | 5.000 | 12/01/36 | 622 | ||||
Michigan Financial Authority Revenue Bonds | 1,000 | 5.000 | 11/01/27 | 1,124 | ||||
Michigan Strategic Fund Revenue Bonds | 1,015 | 5.250 | 06/01/32 | 1,038 | ||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds | 3,170 | 5.125 | 06/01/22 | 3,147 | ||||
Saline Economic Development Corp. Revenue Bonds | 485 | 5.250 | 06/01/32 | 496 | ||||
Wayne County Airport Authority Revenue Bonds | 2,000 | 5.000 | 12/01/17 | 2,044 | ||||
Wayne County Airport Authority Revenue Bonds | 435 | 5.000 | 12/01/29 | 499 | ||||
Wayne County Airport Authority Revenue Bonds(µ) | 3,915 | 5.000 | 12/01/39 | 4,327 | ||||
54,897 | ||||||||
Minnesota - 1.0% | ||||||||
City of Minneapolis Minnesota Revenue Bonds | 1,855 | 6.375 | 11/15/23 | 2,005 | ||||
City of Minneapolis Minnesota/State Paul Housing & Redevelopment Authority | ||||||||
Revenue Bonds | 675 | 5.000 | 11/15/20 | 759 | ||||
City of Minneapolis Minnesota/State Paul Housing & Redevelopment Authority | ||||||||
Revenue Bonds | 965 | 5.000 | 11/15/28 | 1,160 | ||||
City of Rochester Minnesota Revenue Bonds(Ê) | 1,125 | 4.000 | 11/15/30 | 1,173 | ||||
City of Saint Louis Park Minnesota Revenue Bonds | 1,165 | 5.500 | 07/01/17 | 1,174 | ||||
City of Saint Louis Park Minnesota Revenue Bonds | 725 | 5.500 | 07/01/18 | 763 | ||||
Minnesota Agricultural & Economic Development Board Revenue Bonds(Ê) | 4,410 | 0.870 | 09/01/21 | 4,410 | ||||
State Paul Housing & Redevelopment Authority Revenue Bonds | 2,145 | 5.000 | 11/15/25 | 2,334 | ||||
State Paul Housing & Redevelopment Authority Revenue Bonds | 2,250 | 5.000 | 11/15/26 | 2,436 | ||||
16,214 | ||||||||
Mississippi - 0.9% | ||||||||
Mississippi Business Finance Corp. Revenue Bonds(Ê) | 9,300 | 0.600 | 12/01/30 | 9,300 | ||||
Mississippi Development Bank Revenue Bonds(µ) | 1,000 | 5.000 | 04/01/28 | 1,134 | ||||
Mississippi Development Bank Revenue Bonds(µ) | 1,000 | 5.000 | 03/01/34 | 1,121 | ||||
Mississippi Hospital Equipment & Facilities Authority Revenue Bonds | 1,555 | 5.000 | 10/01/17 | 1,581 | ||||
Mississippi Hospital Equipment & Facilities Authority Revenue Bonds | 2,000 | 5.000 | 09/01/36 | 2,222 | ||||
15,358 | ||||||||
Missouri - 0.9% |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 527
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Bi-State Development Agency of the Missouri-Illinois Metropolitan District Revenue | ||||||||
Bonds | 810 | 5.000 | 10/01/28 | 853 | ||||
Bi-State Development Agency of the Missouri-Illinois Metropolitan District Revenue | ||||||||
Bonds | 1,775 | 5.000 | 10/01/33 | 2,031 | ||||
City of Kansas City Missouri Revenue Bonds | 1,185 | 5.000 | 09/01/26 | 1,282 | ||||
City of Kansas City Missouri Revenue Bonds | 500 | 5.000 | 09/01/27 | 540 | ||||
City of Kansas City Missouri Revenue Bonds | 1,000 | 5.000 | 09/01/28 | 1,079 | ||||
City of Kansas City Missouri Revenue Bonds | 1,000 | 5.000 | 09/01/29 | 1,078 | ||||
City of Saint Louis Missouri Airport Revenue Bonds | 1,680 | 6.125 | 07/01/24 | 1,833 | ||||
County of Boone Missouri Revenue Bonds | 2,760 | 5.000 | 08/01/30 | 3,052 | ||||
County of Boone Missouri Revenue Bonds | 1,700 | 4.000 | 08/01/33 | 1,720 | ||||
Lees Summit Industrial Development Authority Revenue Bonds | 1,550 | 5.000 | 08/15/36 | 1,561 | ||||
Nixa Public Schools General Obligation Unlimited | 500 | 5.000 | 03/01/33 | 547 | ||||
15,576 | ||||||||
Nebraska - 1.3% | ||||||||
Central Plains Energy Project Revenue Bonds | 1,565 | 5.000 | 09/01/32 | 1,692 | ||||
Central Plains Energy Project Revenue Bonds | 3,505 | 5.250 | 09/01/37 | 3,801 | ||||
Douglas County Hospital Authority No. 2 Revenue Bonds(Ê) | 11,800 | 0.510 | 08/15/32 | 11,800 | ||||
Nebraska Public Power District Revenue Bonds | 2,000 | 4.000 | 01/01/21 | 2,187 | ||||
Nebraska Public Power District Revenue Bonds | 1,000 | 5.000 | 01/01/29 | 1,142 | ||||
Scotts Bluff County Hospital Authority Revenue Bonds | 1,000 | 5.000 | 02/01/20 | 1,066 | ||||
21,688 | ||||||||
Nevada - 1.2% | ||||||||
City of Reno Nevada General Obligation Limited | 1,100 | 5.000 | 06/01/18 | 1,146 | ||||
City of Reno Nevada General Obligation Limited | 1,000 | 5.000 | 06/01/22 | 1,146 | ||||
Clark County Water Reclamation District General Obligation Limited | 3,640 | 5.000 | 07/01/22 | 4,257 | ||||
Clark County Water Reclamation District General Obligation Limited | 4,915 | 5.000 | 07/01/23 | 5,850 | ||||
County of Clark Nevada Airport System Revenue Bonds(µ) | 1,000 | 5.000 | 07/01/22 | 1,082 | ||||
County of Clark Nevada Revenue Bonds | 2,965 | 5.000 | 07/01/29 | 3,452 | ||||
State of Nevada General Obligation Limited | 2,590 | 5.000 | 04/01/21 | 2,945 | ||||
19,878 | ||||||||
New Jersey - 5.3% | ||||||||
Camden County Improvement Authority Revenue Bonds | 1,000 | 5.000 | 02/15/18 | 1,027 | ||||
Camden County Improvement Authority Revenue Bonds | 1,000 | 5.000 | 02/15/19 | 1,056 | ||||
Camden County Improvement Authority Revenue Bonds | 2,000 | 5.000 | 02/15/28 | 2,198 | ||||
Camden County Improvement Authority Revenue Bonds | 2,000 | 5.000 | 02/15/30 | 2,166 | ||||
Camden County Improvement Authority Revenue Bonds | 2,000 | 5.000 | 02/15/31 | 2,151 | ||||
Camden County Improvement Authority Revenue Bonds | 300 | 5.000 | 02/15/32 | 321 | ||||
Casino Reinvestment Development Authority Revenue Bonds | 600 | 5.000 | 11/01/18 | 623 | ||||
Casino Reinvestment Development Authority Revenue Bonds | 1,000 | 4.000 | 11/01/19 | 1,029 | ||||
City of Bayonne New Jersey General Obligation Unlimited(µ) | 1,500 | 5.000 | 07/01/33 | 1,700 | ||||
City of Bayonne New Jersey General Obligation Unlimited(µ) | 1,865 | 5.000 | 07/01/34 | 2,100 | ||||
City of Paterson New Jersey General Obligation Unlimited(µ) | 1,180 | 5.000 | 01/15/23 | 1,329 | ||||
City of Trenton New Jersey General Obligation Unlimited(µ) | 1,680 | 5.000 | 07/15/23 | 1,910 | ||||
New Jersey Economic Development Authority Revenue Bonds | 2,500 | 5.000 | 09/01/18 | 2,619 | ||||
New Jersey Economic Development Authority Revenue Bonds | 6,435 | 5.000 | 06/15/19 | 6,769 | ||||
New Jersey Economic Development Authority Revenue Bonds | 2,765 | 5.000 | 06/15/20 | 2,956 | ||||
New Jersey Economic Development Authority Revenue Bonds | 75 | 5.000 | 06/15/21 | 81 | ||||
New Jersey Economic Development Authority Revenue Bonds | 2,000 | 5.000 | 06/15/22 | 2,184 | ||||
New Jersey Economic Development Authority Revenue Bonds | 2,045 | 5.000 | 06/15/23 | 2,216 | ||||
New Jersey Economic Development Authority Revenue Bonds(µ) | 700 | 5.500 | 09/01/24 | 777 |
See accompanying notes which are an integral part of the financial statements.
528 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
New Jersey Economic Development Authority Revenue Bonds | 795 | 5.000 | 07/01/27 | 889 | ||||
New Jersey Economic Development Authority Revenue Bonds | 750 | 5.000 | 07/01/29 | 789 | ||||
New Jersey Educational Facilities Authority Revenue Bonds(µ) | 2,000 | 5.000 | 07/01/23 | 2,341 | ||||
New Jersey Educational Facilities Authority Revenue Bonds(µ) | 450 | 5.000 | 07/01/32 | 502 | ||||
New Jersey Educational Facilities Authority Revenue Bonds(µ) | 2,885 | 5.000 | 07/01/33 | 3,254 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) | 1,000 | 5.000 | 09/15/17 | 1,015 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 490 | 4.250 | 07/01/18 | 505 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 1,355 | 3.600 | 07/01/19 | 1,427 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 900 | 3.850 | 07/01/20 | 973 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) | 1,000 | 5.000 | 07/01/27 | 1,146 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 1,000 | 5.000 | 07/01/28 | 1,162 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 2,300 | 5.000 | 07/01/29 | 2,677 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 300 | 5.000 | 07/01/30 | 333 | ||||
New Jersey Health Care Facilities Financing Authority Revenue Bonds | 1,000 | 5.000 | 07/01/31 | 1,137 | ||||
New Jersey State Turnpike Authority Revenue Bonds | 5,540 | 5.000 | 01/01/22 | 6,369 | ||||
New Jersey State Turnpike Authority Revenue Bonds | 3,485 | 5.000 | 01/01/23 | 4,075 | ||||
New Jersey State Turnpike Authority Revenue Bonds | 3,080 | 5.000 | 01/01/24 | 3,581 | ||||
New Jersey State Turnpike Authority Revenue Bonds | 2,500 | 5.000 | 01/01/27 | 2,861 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) | 830 | 5.500 | 12/15/18 | 872 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) | 2,950 | 5.500 | 12/15/20 | 3,254 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 2,260 | 5.000 | 06/15/29 | 2,405 | ||||
New Jersey Transportation Trust Fund Authority Revenue Bonds | 3,000 | 5.000 | 06/15/30 | 3,065 | ||||
New Jersey Turnpike Authority Revenue Bonds | 2,000 | 5.000 | 01/01/33 | 2,313 | ||||
Newark Housing Authority Revenue Bonds(µ) | 350 | 5.000 | 12/01/20 | 388 | ||||
State of New Jersey General Obligation Unlimited(µ) | 2,080 | 5.500 | 07/15/18 | 2,183 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 55 | 4.500 | 06/01/23 | 55 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 1,245 | 5.000 | 06/01/29 | 1,248 | ||||
Tobacco Settlement Financing Corp. Revenue Bonds | 3,300 | 4.750 | 06/01/34 | 3,228 | ||||
89,259 | ||||||||
New Mexico - 0.1% | ||||||||
New Mexico Hospital Equipment Loan Council Revenue Bonds | 555 | 5.000 | 08/01/25 | 668 | ||||
New York - 7.2% | ||||||||
Brooklyn Arena Local Development Corp. Revenue Bonds | 1,125 | 5.000 | 07/15/28 | 1,301 | ||||
Buffalo & Erie County Industrial Land Development Corp. Revenue Bonds | 385 | 5.000 | 07/01/20 | 421 | ||||
Buffalo & Erie County Industrial Land Development Corp. Revenue Bonds | 1,350 | 5.750 | 10/01/26 | 1,562 | ||||
Build NYC Resource Corp. Revenue Bonds(µ) | 930 | 5.000 | 12/15/18 | 987 | ||||
Build NYC Resource Corp. Revenue Bonds | 1,445 | 5.000 | 08/01/19 | 1,553 | ||||
City of New York New York General Obligation Unlimited | 1,500 | 5.000 | 08/01/19 | 1,629 | ||||
City of New York New York General Obligation Unlimited | 2,105 | 5.000 | 08/01/20 | 2,355 | ||||
City of New York New York General Obligation Unlimited | 2,550 | 5.000 | 08/01/21 | 2,924 | ||||
City of New York New York General Obligation Unlimited | 2,445 | 5.000 | 08/01/22 | 2,859 | ||||
City of New York New York General Obligation Unlimited | 6,420 | 5.000 | 08/01/23 | 7,641 | ||||
City of Yonkers New York General Obligation Limited(µ) | 615 | 5.000 | 03/15/25 | 694 | ||||
County of Nassau New York General Obligation Limited(µ) | 725 | 5.000 | 04/01/39 | 815 | ||||
Metropolitan Transportation Authority Revenue Bonds | 1,000 | 5.000 | 11/15/17 | 1,022 | ||||
Metropolitan Transportation Authority Revenue Bonds(ae) | 1,155 | 6.500 | 11/15/18 | 1,254 | ||||
Metropolitan Transportation Authority Revenue Bonds(µ) | 4,000 | 1.248 | 04/06/20 | 3,999 | ||||
Metropolitan Transportation Authority Revenue Bonds | 1,410 | 5.000 | 11/15/24 | 1,647 | ||||
Metropolitan Transportation Authority Revenue Bonds | 8,320 | 5.000 | 11/15/25 | 9,716 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 529
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Metropolitan Transportation Authority Revenue Bonds | 1,475 | 5.000 | 11/15/27 | 1,712 | ||||
Metropolitan Transportation Authority Revenue Bonds | 4,015 | 5.000 | 11/15/28 | 4,691 | ||||
Metropolitan Transportation Authority Revenue Bonds | 275 | 6.500 | 11/15/28 | 297 | ||||
Metropolitan Transportation Authority Revenue Bonds | 1,075 | 5.000 | 11/15/35 | 1,223 | ||||
New York City Industrial Development Agency Revenue Bonds(µ) | 1,535 | 5.000 | 01/01/31 | 1,539 | ||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds | 890 | 5.000 | 11/01/20 | 1,004 | ||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds | 2,175 | 5.000 | 05/01/21 | 2,483 | ||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds | 2,180 | 5.000 | 11/01/21 | 2,517 | ||||
New York City Trust for Cultural Resources Revenue Bonds | 940 | 5.000 | 07/01/21 | 1,059 | ||||
New York State Dormitory Authority Revenue Bonds | 1,755 | 5.000 | 07/01/17 | 1,767 | ||||
New York State Dormitory Authority Revenue Bonds(ae) | 5 | 5.250 | 02/15/19 | 6 | ||||
New York State Dormitory Authority Revenue Bonds | 1,000 | 5.000 | 10/01/19 | 1,094 | ||||
New York State Dormitory Authority Revenue Bonds | 995 | 5.250 | 02/15/21 | 1,069 | ||||
New York State Dormitory Authority Revenue Bonds | 180 | 5.000 | 07/01/21 | 206 | ||||
New York State Dormitory Authority Revenue Bonds | 2,400 | 5.000 | 05/01/22 | 2,712 | ||||
New York State Dormitory Authority Revenue Bonds | 725 | 5.000 | 05/15/23 | 842 | ||||
New York State Dormitory Authority Revenue Bonds | 6,700 | 5.000 | 12/15/23 | 7,840 | ||||
New York State Dormitory Authority Revenue Bonds | 700 | 5.000 | 07/01/24 | 804 | ||||
New York State Dormitory Authority Revenue Bonds | 6,790 | 5.000 | 07/01/26 | 7,888 | ||||
New York State Dormitory Authority Revenue Bonds | 1,710 | 5.000 | 12/15/28 | 1,993 | ||||
New York State Dormitory Authority Revenue Bonds | 2,500 | 5.250 | 07/01/29 | 2,719 | ||||
New York State Energy Research & Development Authority Revenue Bonds(µ)(Ê) | 3,190 | 0.433 | 03/01/27 | 3,074 | ||||
New York State Environmental Facilities Corp. Revenue Bonds | 770 | 5.000 | 06/15/22 | 804 | ||||
New York State Environmental Facilities Corp. Revenue Bonds | 1,640 | 5.000 | 09/15/23 | 1,665 | ||||
New York State Thruway Authority Revenue Bonds | 12,485 | 5.000 | 05/01/19 | 13,427 | ||||
Rensselaer City School District Certificate Of Participation(µ) | 485 | 5.000 | 06/01/20 | 534 | ||||
Triborough Bridge & Tunnel Authority Revenue Bonds | 950 | 5.000 | 11/15/17 | 971 | ||||
Triborough Bridge & Tunnel Authority Revenue Bonds(µ) | 1,000 | 5.500 | 11/15/20 | 1,144 | ||||
Triborough Bridge & Tunnel Authority Revenue Bonds | 1,000 | 5.000 | 11/15/32 | 1,184 | ||||
Triborough Bridge & Tunnel Authority Revenue Bonds | 5,620 | 5.000 | 11/15/33 | 6,620 | ||||
Troy Capital Resource Corp. Revenue Bonds | 1,000 | 5.000 | 09/01/20 | 1,107 | ||||
TSASC, Inc. New York Revenue Bonds | 1,500 | 5.000 | 06/01/29 | 1,718 | ||||
Westchester County Local Development Corp. Revenue Bonds | 1,350 | 5.000 | 05/01/34 | 1,447 | ||||
121,539 | ||||||||
North Carolina - 0.6% | ||||||||
North Carolina Capital Facilities Finance Agency Revenue Bonds | 750 | 5.000 | 04/01/19 | 803 | ||||
North Carolina Medical Care Commission Revenue Bonds | 700 | 5.000 | 10/01/30 | 784 | ||||
North Carolina Medical Care Commission Revenue Bonds | 2,105 | 5.000 | 11/01/31 | 2,339 | ||||
North Carolina Turnpike Authority Revenue Bonds(µ) | 1,310 | 5.000 | 01/01/28 | 1,561 | ||||
State of North Carolina General Obligation Unlimited | 2,500 | 5.000 | 05/01/20 | 2,782 | ||||
State of North Carolina Revenue Bonds | 1,000 | 5.000 | 05/01/19 | 1,078 | ||||
University of North Carolina at Chapel Hill Revenue Bonds | 1,205 | 5.000 | 12/01/31 | 1,234 | ||||
10,581 | ||||||||
North Dakota - 0.2% | ||||||||
City of Williston North Dakota Revenue Bonds(µ) | 1,425 | 4.000 | 11/01/20 | 1,427 | ||||
County of Burleigh North Dakota Revenue Bonds | 460 | 5.000 | 07/01/29 | 526 | ||||
County of Burleigh North Dakota Revenue Bonds | 500 | 5.000 | 07/01/31 | 571 | ||||
2,524 | ||||||||
Ohio - 5.4% | ||||||||
American Municipal Power, Inc. Revenue Bonds | 1,790 | 5.000 | 02/15/34 | 2,022 |
See accompanying notes which are an integral part of the financial statements.
530 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
American Municipal Power, Inc. Revenue Bonds | 1,605 | 5.000 | 02/15/36 | 1,801 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 5,700 | 5.125 | 06/01/24 | 5,434 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 475 | 5.375 | 06/01/24 | 458 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 2,650 | 5.875 | 06/01/30 | 2,551 | ||||
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | 6,495 | 5.750 | 06/01/34 | 6,203 | ||||
City of Cincinnati Ohio General Obligation Unlimited | 1,815 | 5.000 | 12/01/30 | 2,089 | ||||
City of Cleveland Ohio Airport System Revenue Bonds(µ) | 3,000 | 5.000 | 01/01/30 | 3,328 | ||||
City of Cleveland Ohio Revenue Bonds | 1,500 | 5.000 | 10/01/37 | 1,681 | ||||
Clermont County Port Authority Revenue Bonds(µ) | 200 | 5.000 | 12/01/23 | 233 | ||||
Cleveland Municipal School District General Obligation Unlimited | 1,100 | 5.000 | 12/01/27 | 1,274 | ||||
County of Cuyahoga Ohio Certificate Of Participation | 14,065 | 5.000 | 12/01/27 | 16,293 | ||||
County of Cuyahoga Ohio Certificate Of Participation | 1,990 | 5.000 | 12/01/28 | 2,294 | ||||
County of Hamilton Ohio Revenue Bonds | 1,350 | 5.000 | 01/01/31 | 1,441 | ||||
County of Hamilton Ohio Revenue Bonds | 1,890 | 5.250 | 06/01/32 | 2,129 | ||||
County of Montgomery Ohio Revenue Bonds | 1,100 | 5.750 | 11/15/22 | 1,241 | ||||
County of Montgomery Ohio Revenue Bonds(Ê) | 13,040 | 0.570 | 11/15/39 | 13,040 | ||||
County of Montgomery Ohio Revenue Bonds(Ê) | 7,250 | 0.590 | 11/15/39 | 7,250 | ||||
Lakewood City School District General Obligation Unlimited | 875 | 5.000 | 11/01/30 | 1,017 | ||||
Middletown City School District General Obligation Unlimited | 1,435 | 5.250 | 12/01/34 | 1,672 | ||||
North Olmsted City School District General Obligation Unlimited | 420 | 1.750 | 12/01/19 | 424 | ||||
Ohio Air Quality Development Authority Revenue Bonds(Ê) | 255 | 4.250 | 08/01/29 | 238 | ||||
Ohio State Water Development Authority Revenue Bonds | 6,085 | 5.000 | 06/01/21 | 6,963 | ||||
Ohio Water Development Authority Water Pollution Control Loan Fund Revenue | ||||||||
Bonds(Ê) | 600 | 4.375 | 06/01/33 | 559 | ||||
State of Ohio Revenue Bonds | 3,500 | 5.000 | 12/15/22 | 4,049 | ||||
State of Ohio Revenue Bonds | 2,815 | 5.000 | 12/15/23 | 3,265 | ||||
Toledo-Lucas County Port Authority Revenue Bonds | 1,965 | 5.000 | 07/01/29 | 2,099 | ||||
91,048 | ||||||||
Oklahoma - 0.3% | ||||||||
Lincoln County Educational Facilities Authority Revenue Bonds | 680 | 5.000 | 09/01/27 | 789 | ||||
Oklahoma County Finance Authority Revenue Bonds | 1,000 | 5.000 | 09/01/21 | 1,138 | ||||
Oklahoma Development Finance Authority Revenue Bonds | 2,000 | 5.000 | 08/15/28 | 2,333 | ||||
4,260 | ||||||||
Oregon - 0.3% | ||||||||
City of Portland Oregon Sewer System Revenue Bonds | 2,000 | 5.000 | 06/15/18 | 2,091 | ||||
Hospital Facilities Authority of Multnomah County Oregon Revenue Bonds | 410 | 5.000 | 10/01/19 | 426 | ||||
Morrow County School District No. 1 General Obligation Unlimited(µ) | 1,955 | 5.500 | 06/15/21 | 2,275 | ||||
4,792 | ||||||||
Pennsylvania - 3.7% | ||||||||
Allegheny County Higher Education Building Authority Revenue Bonds | 410 | 5.000 | 10/15/19 | 435 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 590 | 5.000 | 10/15/20 | 634 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 615 | 5.000 | 10/15/21 | 669 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 650 | 5.000 | 10/15/22 | 709 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 790 | 5.000 | 10/15/26 | 856 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 835 | 5.000 | 10/15/27 | 903 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 870 | 5.000 | 10/15/28 | 935 | ||||
Allegheny County Higher Education Building Authority Revenue Bonds | 660 | 3.000 | 10/15/29 | 583 | ||||
Berks County Municipal Authority Revenue Bonds | 1,960 | 5.250 | 11/01/24 | 2,124 | ||||
Bethlehem Authority Revenue Bonds(µ) | 1,000 | 5.000 | 11/15/17 | 1,021 | ||||
City of Philadelphia General Obligation Unlimited(µ) | 110 | 5.000 | 08/01/19 | 119 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 531
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
City of Philadelphia General Obligation Unlimited(µ) | 890 | 5.000 | 08/01/24 | 958 | ||||
City of Philadelphia Pennsylvania General Obligation Unlimited | 3,210 | 5.250 | 07/15/27 | 3,642 | ||||
Commonwealth of Pennsylvania General Obligation Unlimited(µ) | 1,300 | 5.375 | 07/01/17 | 1,309 | ||||
Dallas Area Municipal Authority Revenue Bonds | 430 | 4.000 | 05/01/18 | 436 | ||||
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) | 295 | 5.000 | 11/01/25 | 339 | ||||
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) | 1,120 | 5.000 | 11/01/27 | 1,284 | ||||
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) | 1,140 | 5.000 | 11/01/28 | 1,305 | ||||
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) | 1,500 | 5.250 | 11/01/33 | 1,728 | ||||
East Allegheny School District General Obligation Unlimited(µ) | 350 | 3.000 | 04/01/19 | 358 | ||||
General Authority of Southcentral Pennsylvania Revenue Bonds | 360 | 5.000 | 12/01/28 | 405 | ||||
Mifflin County School District General Obligation Limited(µ) | 870 | 5.000 | 09/01/29 | 990 | ||||
Mifflin County School District General Obligation Limited(µ) | 1,000 | 5.000 | 09/01/30 | 1,132 | ||||
North Penn Water Authority Revenue Bonds | 1,190 | 5.000 | 11/01/30 | 1,351 | ||||
Northampton County General Purpose Authority Revenue Bonds | 285 | 5.000 | 10/01/30 | 315 | ||||
Northampton County General Purpose Authority Revenue Bonds | 150 | 5.000 | 10/01/31 | 165 | ||||
Pennsylvania Economic Development Financing Authority Revenue Bonds | 2,270 | 5.000 | 01/01/22 | 2,284 | ||||
Pennsylvania Economic Development Financing Authority Revenue Bonds | 580 | 5.000 | 07/01/22 | 584 | ||||
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | 1,940 | 5.250 | 05/01/24 | 2,186 | ||||
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | 700 | 5.000 | 07/01/31 | 761 | ||||
Pennsylvania Turnpike Commission Revenue Bonds | 1,000 | 5.000 | 12/01/22 | 1,167 | ||||
Philadelphia Authority for Industrial Development Revenue Bonds | 1,000 | 5.875 | 06/15/22 | 1,069 | ||||
Philadelphia Authority for Industrial Development Revenue Bonds | 2,000 | 8.000 | 01/01/33 | 2,268 | ||||
School District of Philadelphia (The) General Obligation Limited(µ) | 4,605 | 5.000 | 09/01/27 | 5,277 | ||||
Scranton School District General Obligation Limited | 515 | 3.000 | 06/01/17 | 515 | ||||
Scranton School District General Obligation Limited | 350 | 4.000 | 06/01/18 | 358 | ||||
Scranton School District General Obligation Limited | 1,175 | 5.000 | 06/01/19 | 1,242 | ||||
State Public School Building Authority Revenue Bonds | 2,000 | 5.000 | 04/01/20 | 2,148 | ||||
State Public School Building Authority Revenue Bonds | 3,030 | 5.000 | 04/01/25 | 3,283 | ||||
State Public School Building Authority Revenue Bonds(µ) | 1,000 | 5.000 | 06/15/28 | 1,140 | ||||
State Public School Building Authority Revenue Bonds(µ) | 1,000 | 5.000 | 06/15/29 | 1,138 | ||||
State Public School Building Authority Revenue Bonds | 3,000 | 5.000 | 04/01/32 | 3,169 | ||||
Township of Bensalem Pennsylvania General Obligation Unlimited | 1,380 | 5.250 | 06/01/29 | 1,636 | ||||
University of Pittsburgh-of the Commonwealth System of Higher Education Revenue | ||||||||
Bonds | 1,000 | 5.500 | 09/15/21 | 1,082 | ||||
West Mifflin Sanitary Sewer Municipal Authority Revenue Bonds(µ) | 250 | 3.000 | 08/01/17 | 251 | ||||
West Mifflin Sanitary Sewer Municipal Authority Revenue Bonds(µ) | 225 | 4.000 | 08/01/18 | 234 | ||||
West Mifflin School District General Obligation Limited(µ) | 1,000 | 5.000 | 04/01/28 | 1,125 | ||||
West Mifflin School District General Obligation Limited(µ) | 3,045 | 4.000 | 04/01/30 | 3,098 | ||||
Western Wayne School District General Obligation Unlimited(µ) | 565 | 5.000 | 04/01/21 | 631 | ||||
61,351 | ||||||||
Puerto Rico - 2.1% | ||||||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 875 | 5.000 | 07/01/17 | 880 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 285 | 5.500 | 07/01/18 | 295 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 640 | 5.500 | 07/01/19 | 674 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 235 | 5.250 | 07/01/20 | 253 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 1,000 | 5.250 | 07/01/21 | 1,003 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 380 | 4.000 | 07/01/22 | 394 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 75 | 5.375 | 07/01/25 | 80 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 170 | 5.250 | 07/01/26 | 179 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 340 | 4.250 | 07/01/27 | 345 |
See accompanying notes which are an integral part of the financial statements.
532 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 1,000 | 5.250 | 07/01/27 | 1,018 | ||||
Commonwealth of Puerto Rico General Obligation Unlimited(µ) | 3,470 | 5.000 | 07/01/35 | 3,623 | ||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds(µ) | 3,050 | 5.000 | 07/01/28 | 3,121 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 1,400 | 5.000 | 07/01/18 | 1,404 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 100 | 5.000 | 07/01/20 | 101 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 345 | 5.000 | 07/01/31 | 345 | ||||
Puerto Rico Convention Center District Authority Revenue Bonds(µ) | 745 | 4.500 | 07/01/36 | 730 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ) | 1,000 | 5.000 | 07/01/19 | 1,025 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ) | 1,815 | 5.000 | 07/01/21 | 1,855 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ) | 215 | 4.000 | 07/01/23 | 216 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ) | 1,940 | 5.000 | 07/01/26 | 1,949 | ||||
Puerto Rico Electric Power Authority Revenue Bonds(µ) | 205 | 4.375 | 07/01/30 | 205 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) | 300 | 4.125 | 07/01/18 | 301 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) | 895 | 5.500 | 07/01/26 | 1,010 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) | 950 | 5.000 | 07/01/27 | 954 | ||||
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) | 700 | 5.500 | 07/01/28 | 753 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 1,185 | 5.500 | 07/01/17 | 1,190 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 1,980 | 5.500 | 07/01/23 | 2,119 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 680 | 5.500 | 07/01/24 | 730 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 740 | 5.500 | 07/01/25 | 796 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 1,500 | 5.500 | 07/01/26 | 1,614 | ||||
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) | 60 | 5.500 | 07/01/27 | 65 | ||||
Puerto Rico Municipal Finance Agency General Obligation Unlimited(µ) | 3,090 | 5.000 | 08/01/27 | 3,139 | ||||
Puerto Rico Municipal Finance Agency Revenue Bonds(µ) | 115 | 5.250 | 08/01/22 | 126 | ||||
Puerto Rico Public Buildings Authority Revenue Bonds(µ) | 260 | 5.250 | 07/01/17 | 262 | ||||
Puerto Rico Public Buildings Authority Revenue Bonds(µ) | 2,480 | 5.500 | 07/01/17 | 2,490 | ||||
35,244 | ||||||||
Rhode Island - 0.4% | ||||||||
Providence Public Buildings Authority Revenue Bonds(µ) | 500 | 5.875 | 06/15/26 | 561 | ||||
Rhode Island Commerce Corp. Revenue Bonds | 1,000 | 5.000 | 06/15/26 | 1,193 | ||||
Rhode Island Commerce Corp. Revenue Bonds | 2,610 | 5.000 | 06/15/27 | 3,090 | ||||
Rhode Island Health & Educational Building Corp. Revenue Bonds | 1,000 | 5.000 | 05/15/28 | 1,118 | ||||
Rhode Island Health & Educational Building Corp. Revenue Bonds | 1,250 | 5.000 | 05/15/29 | 1,386 | ||||
7,348 | ||||||||
South Carolina - 1.3% | ||||||||
County of Greenwood South Carolina Revenue Bonds(µ)(Ê) | 150 | 0.396 | 10/01/34 | 140 | ||||
Lee County School Facilities, Inc. Revenue Bonds(µ) | 1,050 | 4.000 | 12/01/27 | 1,155 | ||||
Lee County School Facilities, Inc. Revenue Bonds(µ) | 1,500 | 4.000 | 12/01/28 | 1,638 | ||||
Piedmont Municipal Power Agency Revenue Bonds | 1,000 | 5.000 | 01/01/20 | 1,093 | ||||
South Carolina Public Service Authority Revenue Bonds | 3,500 | 5.000 | 12/01/30 | 3,844 | ||||
South Carolina Public Service Authority Revenue Bonds | 2,060 | 5.000 | 12/01/31 | 2,296 | ||||
South Carolina State Public Service Authority Revenue Bonds | 3,310 | 5.000 | 12/01/36 | 3,479 | ||||
Spartanburg Regional Health Services District Revenue Bonds | 5,560 | 5.000 | 04/15/32 | 6,103 | ||||
Sumter Two School Facilities, Inc. Revenue Bonds(µ) | 1,360 | 5.000 | 12/01/26 | 1,581 | ||||
21,329 | ||||||||
South Dakota - 0.1% | ||||||||
South Dakota Health & Educational Facilities Authority Revenue Bonds | 1,000 | 5.000 | 11/01/35 | 1,101 | ||||
Tennessee - 0.5% | ||||||||
Chattanooga Health Educational & Housing Facility Board Revenue Bonds | 600 | 5.000 | 10/01/26 | 695 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 533
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Chattanooga Industrial Development Board Revenue Bonds(µ) | 2,000 | 5.000 | 10/01/30 | 2,031 | ||||
Chattanooga-Hamilton County Hospital Authority Revenue Bonds | 630 | 5.000 | 10/01/23 | 721 | ||||
Knox County Health Educational & Housing Facility Board Revenue Bonds | 1,750 | 5.000 | 04/01/29 | 1,981 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd | ||||||||
Revenue Bonds | 340 | 5.000 | 10/01/28 | 386 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd | ||||||||
Revenue Bonds | 2,200 | 5.000 | 07/01/35 | 2,470 | ||||
8,284 | ||||||||
Texas - 8.8% | ||||||||
Arlington Higher Education Finance Corp. Revenue Bonds | 1,000 | 5.000 | 08/15/26 | 1,174 | ||||
Austin Community College District Public Facility Corp. Revenue Bonds | 1,000 | 5.000 | 08/01/23 | 1,173 | ||||
Austin Community College District Public Facility Corp. Revenue Bonds | 1,000 | 5.000 | 08/01/24 | 1,185 | ||||
Bexar County Health Facilities Development Corp. Revenue Bonds | 1,765 | 4.000 | 07/15/31 | 1,774 | ||||
Central Texas Regional Mobility Authority Revenue Bonds | 1,200 | 5.000 | 01/01/35 | 1,329 | ||||
Central Texas Turnpike System Revenue Bonds | 500 | 5.000 | 08/15/23 | 581 | ||||
City of Corpus Christi Texas Utility System Revenue Bonds | 1,660 | 5.000 | 07/15/22 | 1,926 | ||||
City of Donna Texas Revenue Bonds(µ) | 1,090 | 5.000 | 02/15/31 | 1,231 | ||||
City of El Paso Texas Water & Sewer Revenue Bonds | 2,890 | 5.000 | 03/01/25 | 3,431 | ||||
City of Houston Texas Airport System Revenue Bonds | 1,500 | 5.000 | 07/01/17 | 1,510 | ||||
City of Houston Texas Airport System Revenue Bonds | 560 | 5.000 | 07/01/25 | 639 | ||||
City of Houston Texas Airport System Revenue Bonds | 900 | 5.000 | 07/01/29 | 1,013 | ||||
City of Houston Texas Revenue Bonds | 1,890 | 5.000 | 09/01/20 | 2,099 | ||||
City of Lubbock Texas General Obligation Limited | 5,000 | 5.000 | 02/15/19 | 5,348 | ||||
City of San Antonio Texas Electric & Gas Systems Revenue Bonds | 10,050 | 5.000 | 02/01/25 | 12,155 | ||||
City of San Antonio Texas Water System Revenue Bonds | 2,250 | 5.000 | 05/15/24 | 2,493 | ||||
Clifton Higher Education Finance Corp. Revenue Bonds | 400 | 4.000 | 08/15/18 | 414 | ||||
Conroe Independent School District General Obligation Unlimited(ae) | 225 | 5.000 | 02/15/20 | 248 | ||||
Conroe Independent School District General Obligation Unlimited | 860 | 5.000 | 02/15/25 | 945 | ||||
County of Fort Bend Texas General Obligation Limited | 3,740 | 5.000 | 03/01/23 | 4,411 | ||||
Dallas/Fort Worth International Airport Revenue Bonds | 3,395 | 5.000 | 11/01/27 | 3,888 | ||||
Dallas/Fort Worth International Airport Revenue Bonds | 1,000 | 5.250 | 11/01/28 | 1,177 | ||||
Dallas/Fort Worth International Airport Revenue Bonds | 1,340 | 5.000 | 11/01/29 | 1,493 | ||||
Dallas/Fort Worth International Airport Revenue Bonds | 2,000 | 5.250 | 11/01/29 | 2,350 | ||||
Dallas/Fort Worth International Airport Revenue Bonds | 1,825 | 5.000 | 11/01/30 | 2,031 | ||||
Dallas/Fort Worth International Airport Revenue Bonds | 1,500 | 5.250 | 11/01/30 | 1,759 | ||||
Decatur Hospital Authority Revenue Bonds | 1,250 | 5.250 | 09/01/29 | 1,359 | ||||
Dickinson Independent School District General Obligation Unlimited | 2,050 | 4.000 | 02/15/29 | 2,245 | ||||
Goose Creek Consolidated Independent School District General Obligation Unlimited | 915 | 5.000 | 02/15/24 | 1,038 | ||||
Harris County Cultural Education Facilities Finance Corp. Revenue Bonds | 1,385 | 6.375 | 01/01/33 | 1,562 | ||||
Harris County-Houston Sports Authority Revenue Bonds | 1,000 | 5.000 | 11/15/26 | 1,145 | ||||
Harris County-Houston Sports Authority Revenue Bonds | 750 | 5.000 | 11/15/27 | 854 | ||||
Harris County-Houston Sports Authority Revenue Bonds | 2,265 | 5.000 | 11/15/29 | 2,538 | ||||
Harris County-Houston Sports Authority Revenue Bonds | 1,215 | 5.000 | 11/15/31 | 1,349 | ||||
Houston Higher Education Finance Corp. Revenue Bonds(ae) | 650 | 6.500 | 05/15/21 | 780 | ||||
Houston Higher Education Finance Corp. Revenue Bonds | 1,600 | �� | 5.000 | 08/15/28 | 1,867 | |||
Karnes County Hospital District Revenue Bonds | 570 | 4.000 | 02/01/19 | 585 | ||||
Karnes County Hospital District Revenue Bonds | 2,020 | 5.000 | 02/01/29 | 2,179 | ||||
Kerrville Health Facilities Development Corp. Revenue Bonds | 1,100 | 4.000 | 08/15/19 | 1,147 | ||||
Lower Colorado River Authority Revenue Bonds | 2,000 | 5.500 | 05/15/31 | 2,359 | ||||
Midlothian Industrial Development Corp. Revenue Bonds(Ê) | 6,300 | 0.730 | 08/01/34 | 6,300 |
See accompanying notes which are an integral part of the financial statements.
534 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 565 | 5.000 | 04/01/21 | 618 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 650 | 5.000 | 04/01/22 | 720 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 180 | 4.625 | 04/01/23 | 197 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 500 | 5.000 | 04/01/29 | 549 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 1,160 | 5.000 | 04/01/35 | 1,322 | ||||
New Hope Cultural Education Facilities Corp. Revenue Bonds | 1,545 | 5.000 | 04/01/36 | 1,755 | ||||
North East Texas Regional Mobility Authority Revenue Bonds | 1,935 | 5.000 | 01/01/31 | 2,144 | ||||
North Texas Tollway Authority Revenue Bonds(ae) | 840 | 6.000 | 01/01/18 | 868 | ||||
North Texas Tollway Authority Revenue Bonds | 120 | 6.000 | 01/01/24 | 124 | ||||
North Texas Tollway Authority Revenue Bonds | 3,840 | 5.000 | 01/01/29 | 4,447 | ||||
Reagan Hospital District of Reagan County General Obligation Limited | 860 | 2.500 | 02/01/19 | 855 | ||||
Reagan Hospital District of Reagan County General Obligation Limited | 910 | 3.250 | 02/01/21 | 913 | ||||
Reagan Hospital District of Reagan County General Obligation Limited | 500 | 5.000 | 02/01/29 | 523 | ||||
Reagan Hospital District of Reagan County General Obligation Limited | 3,000 | 5.000 | 02/01/34 | 3,088 | ||||
Royal Independent School District General Obligation Unlimited | 1,545 | 5.000 | 02/15/28 | 1,893 | ||||
Southwest Houston Redevelopment Authority Tax Allocation(µ) | 1,300 | 5.000 | 09/01/33 | 1,476 | ||||
Southwest Houston Redevelopment Authority Tax Allocation(µ) | 1,350 | 5.000 | 09/01/34 | 1,524 | ||||
State of Texas General Obligation Unlimited | 2,910 | 5.000 | 04/01/22 | 3,387 | ||||
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds | 100 | 2.500 | 12/01/18 | 100 | ||||
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds | 1,000 | 4.000 | 05/15/27 | 1,003 | ||||
Tarrant Regional Water District Revenue Bonds | 6,000 | 5.000 | 03/01/21 | 6,824 | ||||
Tarrant Regional Water District Revenue Bonds | 1,150 | 5.000 | 03/01/22 | 1,336 | ||||
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds | 3,775 | 6.250 | 12/15/26 | 4,555 | ||||
Texas Municipal Gas Acquisition & Supply Corp. III Revenue Bonds | 900 | 5.000 | 12/15/24 | 1,007 | ||||
Texas Municipal Gas Acquisition & Supply Corp. III Revenue Bonds | 3,515 | 5.000 | 12/15/27 | 3,852 | ||||
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds | 1,445 | 7.500 | 12/31/31 | 1,649 | ||||
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds | 1,250 | 7.500 | 06/30/33 | 1,446 | ||||
Texas Public Finance Authority Revenue Bonds | 10,985 | 4.000 | 07/01/17 | 11,010 | ||||
Texas State Public Finance Authority Charter School Finance Corp. Revenue Bonds | 300 | 4.000 | 08/15/18 | 312 | ||||
Viridian Municipal Management District General Obligation Unlimited(µ) | 1,000 | 6.000 | 12/01/27 | 1,246 | ||||
Viridian Municipal Management District General Obligation Unlimited(µ) | 500 | 6.000 | 12/01/32 | 617 | ||||
Viridian Municipal Management District General Obligation Unlimited(µ) | 995 | 6.000 | 12/01/33 | 1,225 | ||||
147,669 | ||||||||
Utah - 0.2% | ||||||||
County of Salt Lake Utah Revenue Bonds(Ê) | 2,000 | 5.000 | 12/01/33 | 2,057 | ||||
Utah State Charter School Finance Authority Revenue Bonds | 465 | 5.250 | 10/15/28 | 532 | ||||
Utah State Charter School Finance Authority Revenue Bonds | 1,215 | 5.000 | 10/15/33 | 1,326 | ||||
3,915 | ||||||||
Vermont - 0.0% | ||||||||
City of Burlington Vermont Airport Revenue Bonds(µ) | 540 | 5.000 | 07/01/24 | 612 | ||||
Virgin Islands - 1.0% | ||||||||
Virgin Islands Public Finance Authority Revenue Bonds | 3,885 | 5.000 | 10/01/18 | 3,623 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 2,000 | 5.000 | 10/01/25 | 1,740 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 8,550 | 5.000 | 10/01/29 | 8,508 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 670 | 5.250 | 10/01/29 | 526 | ||||
Virgin Islands Public Finance Authority Revenue Bonds(µ) | 1,260 | 5.000 | 10/01/32 | 1,338 | ||||
Virgin Islands Public Finance Authority Revenue Bonds | 2,110 | 6.750 | 10/01/37 | 1,699 | ||||
17,434 | ||||||||
Virginia - 0.7% |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 535
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Rate | Date of | Value | |||||
or Shares | % | Maturity | $ | |||||
Ballston Quarter Community Development Authority Tax Allocation | 500 | 5.000 | 03/01/26 | 494 | ||||
Ballston Quarter Community Development Authority Tax Allocation | 1,000 | 5.125 | 03/01/31 | 981 | ||||
Chesterfield County Economic Development Authority Revenue Bonds | 650 | 5.000 | 05/01/23 | 692 | ||||
Commonwealth of Virginia General Obligation Unlimited | 1,000 | 5.000 | 06/01/23 | 1,044 | ||||
County of Fairfax Virginia General Obligation Unlimited | 1,000 | 5.000 | 04/01/18 | 1,037 | ||||
Henrico County Economic Development Authority Revenue Bonds | 1,490 | 5.000 | 11/01/30 | 1,657 | ||||
Virginia College Building Authority Revenue Bonds | 530 | 5.000 | 07/01/19 | 556 | ||||
Virginia College Building Authority Revenue Bonds | 585 | 5.000 | 07/01/20 | 625 | ||||
Virginia College Building Authority Revenue Bonds | 710 | 5.250 | 07/01/30 | 782 | ||||
Virginia Resources Authority Revenue Bonds | 3,795 | 5.000 | 11/01/21 | 4,386 | ||||
12,254 | ||||||||
Washington - 5.1% | ||||||||
City of Seattle Washington Municipal Light & Power Revenue Bonds | 5,760 | 5.000 | 05/01/20 | 6,402 | ||||
City of Seattle Washington Municipal Light & Power Revenue Bonds | 5,545 | 5.000 | 05/01/21 | 6,327 | ||||
City of Seattle Washington Municipal Light & Power Revenue Bonds | 2,820 | 5.000 | 05/01/22 | 3,290 | ||||
County of King Washington Sewer Revenue Bonds | 3,085 | 5.000 | 01/01/28 | 3,574 | ||||
Energy Northwest Revenue Bonds | 2,000 | 5.000 | 07/01/19 | 2,168 | ||||
Greater Wenatchee Regional Events Center Public Facilities District Revenue Bonds | 1,060 | 3.750 | 09/01/19 | 1,069 | ||||
Greater Wenatchee Regional Events Center Public Facilities District Revenue Bonds | 1,000 | 4.500 | 09/01/22 | 1,024 | ||||
Mason County School District No. 309 Shelton General Obligation Unlimited(µ) | 1,115 | 5.000 | 12/01/18 | 1,186 | ||||
Port of Seattle Washington Revenue Bonds | 1,000 | 5.000 | 06/01/22 | 1,102 | ||||
Port of Seattle Washington Revenue Bonds | 1,285 | 5.000 | 03/01/23 | 1,512 | ||||
State of Washington General Obligation Unlimited | 1,000 | 5.000 | 07/01/17 | 1,007 | ||||
State of Washington General Obligation Unlimited | 11,660 | 5.000 | 02/01/25 | 14,120 | ||||
State of Washington Revenue Bonds | 8,000 | 5.000 | 09/01/20 | 8,944 | ||||
Washington Health Care Facilities Authority Revenue Bonds | 270 | 5.000 | 03/01/18 | 279 | ||||
Washington Health Care Facilities Authority Revenue Bonds | 700 | 5.000 | 07/01/30 | 793 | ||||
Washington Health Care Facilities Authority Revenue Bonds(Ê) | 30,600 | 0.520 | 08/15/41 | 30,600 | ||||
Washington State Housing Finance Commission Revenue Bonds | 1,400 | 4.375 | 01/01/21 | 1,401 | ||||
84,798 | ||||||||
West Virginia - 0.1% | ||||||||
West Virginia Hospital Finance Authority Revenue Bonds(µ)(Ê) | 450 | 0.595 | 02/15/34 | 409 | ||||
West Virginia University Revenue Bonds | 1,350 | 5.000 | 10/01/21 | 1,543 | ||||
1,952 | ||||||||
Wisconsin - 1.2% | ||||||||
City of Marshfield Wisconsin Electric System Revenue Bonds | 4,000 | 5.500 | 12/01/30 | 4,590 | ||||
Public Finance Authority Revenue Bonds | 1,000 | 3.000 | 11/15/22 | 1,002 | ||||
Public Finance Authority Revenue Bonds | 1,250 | 5.125 | 11/15/29 | 1,291 | ||||
State of Wisconsin General Obligation Unlimited | 4,250 | 5.000 | 11/01/20 | 4,796 | ||||
Wisconsin Department of Transportation Revenue Bonds(µ) | 1,500 | 5.000 | 07/01/19 | 1,625 | ||||
Wisconsin Department of Transportation Revenue Bonds | 5,950 | 5.000 | 07/01/22 | 6,955 | ||||
20,259 | ||||||||
Wyoming - 0.1% | ||||||||
County of Laramie Wyoming Revenue Bonds | 1,000 | 4.000 | 05/01/22 | 1,070 | ||||
County of Sweetwater Wyoming Revenue Bonds | 40 | 5.000 | 12/15/17 | 41 | ||||
County of Sweetwater Wyoming Revenue Bonds | 960 | 5.000 | 12/15/18 | 983 | ||||
2,094 | ||||||||
Total Municipal Bonds (cost $1,621,159) | 1,648,987 | |||||||
Short-Term Investments - 0.4% |
See accompanying notes which are an integral part of the financial statements.
536 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||
Principal | Fair | |||||
Amount ($) | Rate | Date of | Value | |||
or Shares | % | Maturity | $ | |||
U.S. Cash Management Fund | 6,893,490 | (8) | 6,895 | |||
Total Short-Term Investments (cost $6,895) | 6,895 | |||||
Total Investments 98.6% (identified cost $1,628,054) | 1,655,882 | |||||
Other Assets and Liabilities, Net - 1.4% | 23,719 | |||||
Net Assets - 100.0% | 1,679,601 |
Presentation of Portfolio Holdings | |||||||||||||||
Amount in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||
Municipal Bonds | |||||||||||||||
Alabama | $ | — | $ | 30,501 | $ | — | $ | — | $ | 30,501 | 1.8 | ||||
Alaska | — | 3,034 | — | — | 3,034 | 0.2 | |||||||||
Arizona | — | 35,316 | — | — | 35,316 | 2.1 | |||||||||
Arkansas | — | 1,912 | — | — | 1,912 | 0.1 | |||||||||
California | — | 122,280 | — | — | 122,280 | 7.3 | |||||||||
Colorado | — | 38,917 | — | — | 38,917 | 2.3 | |||||||||
Connecticut | — | 27,414 | — | — | 27,414 | 1.6 | |||||||||
District of Columbia | — | 3,381 | — | — | 3,381 | 0.2 | |||||||||
Florida | — | 124,809 | — | — | 124,809 | 7.4 | |||||||||
Georgia | — | 27,756 | — | — | 27,756 | 1.7 | |||||||||
Guam | — | 27,230 | — | — | 27,230 | 1.6 | |||||||||
Idaho | — | 7,906 | — | — | 7,906 | 0.5 | |||||||||
Illinois | — | 169,849 | — | — | 169,849 | 10.1 | |||||||||
Indiana | — | 30,036 | — | — | 30,036 | 1.8 | |||||||||
Iowa | — | 11,922 | — | — | 11,922 | 0.7 | |||||||||
Kansas | — | 4,607 | — | — | 4,607 | 0.3 | |||||||||
Kentucky | — | 8,929 | — | — | 8,929 | 0.5 | |||||||||
Louisiana | — | 40,849 | — | — | 40,849 | 2.4 | |||||||||
Maryland | — | 13,237 | — | — | 13,237 | 0.8 | |||||||||
Massachusetts | — | 25,176 | — | — | 25,176 | 1.5 | |||||||||
Michigan | — | 54,897 | — | — | 54,897 | 3.3 | |||||||||
Minnesota | — | 16,214 | — | — | 16,214 | 1.0 | |||||||||
Mississippi | — | 15,358 | — | — | 15,358 | 0.9 | |||||||||
Missouri | — | 15,576 | — | — | 15,576 | 0.9 | |||||||||
Nebraska | — | 21,688 | — | — | 21,688 | 1.3 | |||||||||
Nevada | — | 19,878 | — | — | 19,878 | 1.2 | |||||||||
New Jersey | — | 89,259 | — | — | 89,259 | 5.3 | |||||||||
New Mexico | — | 668 | — | — | 668 | 0.1 | |||||||||
New York | — | 121,539 | — | — | 121,539 | 7.2 | |||||||||
North Carolina | — | 10,581 | — | — | 10,581 | 0.6 | |||||||||
North Dakota | — | 2,524 | — | — | 2,524 | 0.2 | |||||||||
Ohio | — | 91,048 | — | — | 91,048 | 5.4 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 537
Russell Investment Company
Tax-Exempt Bond Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||
Amount in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Oklahoma | — | 4,260 | — | — | 4,260 | 0.3 | ||||||||||
Oregon | — | 4,792 | — | — | 4,792 | 0.3 | ||||||||||
Pennsylvania | — | 61,351 | — | — | 61,351 | 3.7 | ||||||||||
Puerto Rico | — | 35,244 | — | — | 35,244 | 2.1 | ||||||||||
Rhode Island | — | 7,348 | — | — | 7,348 | 0.4 | ||||||||||
South Carolina | — | 21,329 | — | — | 21,329 | 1.3 | ||||||||||
South Dakota | — | 1,101 | — | — | 1,101 | 0.1 | ||||||||||
Tennessee | — | 8,284 | — | — | 8,284 | 0.5 | ||||||||||
Texas | — | 147,669 | — | — | 147,669 | 8.8 | ||||||||||
Utah | — | 3,915 | — | — | 3,915 | 0.2 | ||||||||||
Vermont | — | 612 | — | — | 612 | —* | ||||||||||
Virgin Islands | — | 17,434 | — | — | 17,434 | 1.0 | ||||||||||
Virginia | — | 12,254 | — | — | 12,254 | 0.7 | ||||||||||
Washington | — | 84,798 | — | — | 84,798 | 5.1 | ||||||||||
West Virginia | — | 1,952 | — | — | 1,952 | 0.1 | ||||||||||
Wisconsin | — | 20,259 | — | — | 20,259 | 1.2 | ||||||||||
Wyoming | — | 2,094 | — | — | 2,094 | 0.1 | ||||||||||
Short-Term Investments | — | — | — | 6,895 | 6,895 | 0.4 | ||||||||||
Total Investments | $ | — | $ | 1,648,987 | $ | — | $ | 6,895 | $ | 1,655,882 | 98.6 | |||||
Other Assets and Liabilities, Net | 1.4 | |||||||||||||||
100.0 |
* Less than 0.05% of net assets.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
538 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 1,628,054 |
Investments, at fair value (>) | 1,655,882 | |
Cash | 2,869 | |
Receivables: | ||
Dividends and interest | 20,865 | |
Dividends from affiliated funds | 16 | |
Investments sold | 1,357 | |
Fund shares sold | 6,349 | |
Prepaid expenses | 16 | |
Total assets | 1,687,354 | |
Liabilities | ||
Payables: | ||
Investments purchased | 5,021 | |
Fund shares redeemed | 1,876 | |
Accrued fees to affiliates | 704 | |
Other accrued expenses | 152 | |
Total liabilities | 7,753 | |
Net Assets | $ | 1,679,601 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 539
Russell Investment Company
Tax-Exempt Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 3,692 | |
Accumulated net realized gain (loss) | (1,218 | ) | |
Unrealized appreciation (depreciation) on investments | 27,828 | ||
Shares of beneficial interest | 733 | ||
Additional paid-in capital | 1,648,566 | ||
Net Assets | $ | 1,679,601 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 23.00 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 23.90 | |
Class A — Net assets | $ | 23,280,359 | |
Class A — Shares outstanding ($.01 par value) | 1,012,096 | ||
Net asset value per share: Class C(#) | $ | 22.87 | |
Class C — Net assets | $ | 27,451,706 | |
Class C — Shares outstanding ($.01 par value) | 1,200,239 | ||
Net asset value per share: Class E(#) | $ | 23.00 | |
Class E — Net assets | $ | 3,571,986 | |
Class E — Shares outstanding ($.01 par value) | 155,321 | ||
Net asset value per share: Class S(#) | $ | 22.92 | |
Class S — Net assets | $ 1,617,684,545 | ||
Class S — Shares outstanding ($.01 par value) | 70,580,756 | ||
Net asset value per share: Class T(#) | $ | 22.92 | |
Class T — Net assets | $ | 7,612,447 | |
Class T — Shares outstanding ($.01 par value) | 332,109 | ||
Amounts in thousands | |||
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 6,895 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
540 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends from affiliated funds | $ | 118 | |
Interest | 24,682 | ||
Total investment income | 24,800 | ||
Expenses | |||
Advisory fees | 2,283 | ||
Administrative fees | 368 | ||
Custodian fees | 84 | ||
Distribution fees - Class A | 28 | ||
Distribution fees - Class C | 109 | ||
Transfer agent fees - Class A | 22 | ||
Transfer agent fees - Class C | 29 | ||
Transfer agent fees - Class E | 26 | ||
Transfer agent fees - Class S | 1,444 | ||
Transfer agent fees - Class T | 1 | ||
Professional fees | 48 | ||
Registration fees | 63 | ||
Shareholder servicing fees - Class C | 36 | ||
Shareholder servicing fees - Class E | 32 | ||
Trustees’ fees | 23 | ||
Printing fees | 28 | ||
Miscellaneous | 11 | ||
Expenses before reductions | 4,635 | ||
Expense reductions | (453 | ) | |
Net expenses | 4,182 | ||
Net investment income (loss) | 20,618 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on investments | (994 | ) | |
Net change in unrealized appreciation (depreciation) on investments | (26,341 | ) | |
Net realized and unrealized gain (loss) | (27,335 | ) | |
Net Increase (Decrease) in Net Assets from Operations | $ | (6,717 | ) |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 541
Russell Investment Company
Tax-Exempt Bond Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 20,618 | $ | 37,237 | ||
Net realized gain (loss) | (994 | ) | 493 | |||
Net change in unrealized appreciation (depreciation) | (26,341 | ) | 10,903 | |||
Net increase (decrease) in net assets from operations | (6,717 | ) | 48,633 | |||
Distributions | ||||||
From net investment income | ||||||
Class A | (268 | ) | (501 | ) | ||
Class C | (253 | ) | (498 | ) | ||
Class E | (363 | ) | (1,279 | ) | ||
Class S | (19,413 | ) | (34,581 | ) | ||
Class T | (—)** | — | ||||
Net decrease in net assets from distributions | (20,297 | ) | (36,859 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 200,619 | 185,664 | ||||
Total Net Increase (Decrease) in Net Assets | 173,605 | 197,438 | ||||
Net Assets | ||||||
Beginning of period | 1,505,996 | 1,308,558 | ||||
End of period | $ | 1,679,601 | $ | 1,505,996 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 3,692 | $ | 3,371 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
542 Tax-Exempt Bond Fund
Russell Investment Company
Tax-Exempt Bond Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 146 | $ | 3,333 | 397 | $ | 9,358 | ||||||
Proceeds from reinvestment of distributions | 11 | 258 | 21 | 486 | ||||||||
Payments for shares redeemed | (165 | ) | (3,774 | ) | (236 | ) | (5,551 | ) | ||||
Net increase (decrease) | (8 | ) | (183 | ) | 182 | 4,293 | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 101 | 2,302 | 618 | 14,453 | ||||||||
Proceeds from reinvestment of distributions | 11 | 245 | 21 | 483 | ||||||||
Payments for shares redeemed | (285 | ) | (6,466 | ) | (400 | ) | (9,372 | ) | ||||
Net increase (decrease) | (173 | ) | (3,919 | ) | 239 | 5,564 | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 91 | 2,077 | 427 | 10,045 | ||||||||
Proceeds from reinvestment of distributions | 16 | 357 | 54 | 1,257 | ||||||||
Payments for shares redeemed | (2,332 | ) | (53,286 | ) | (283 | ) | (6,634 | ) | ||||
Net increase (decrease) | (2,225 | ) | (50,852 | ) | 198 | 4,668 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 22,712 | 516,192 | 20,582 | 482,402 | ||||||||
Proceeds from reinvestment of distributions | 845 | 19,214 | 1,450 | 33,948 | ||||||||
Payments for shares redeemed | (12,652 | ) | (287,429 | ) | (14,726 | ) | (345,211 | ) | ||||
Net increase (decrease) | 10,905 | 247,977 | 7,306 | 171,139 | ||||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 333 | 7,609 | — | — | ||||||||
Payments for shares redeemed | (1 | ) | (13 | ) | — | — | ||||||
Net increase (decrease) | 332 | 7,596 | — | — | ||||||||
Total increase (decrease) | 8,831 | $ | 200,619 | 7,925 | $ | 185,664 | ||||||
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 543
Russell Investment Company
Tax-Exempt Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | ||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | $ | |||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Total Distributions | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 23.45 | .28 | (.46 | ) | (.18 | ) | (.27 | ) | (.27 | ) | ||||||
October 31, 2016 | 23.23 | .56 | .22 | .78 | (.56 | ) | (.56 | ) | ||||||||
October 31, 2015 | 23.27 | .54 | (.04 | ) | .50 | (.54 | ) | (.54 | ) | |||||||
October 31, 2014 | 22.62 | .50 | .64 | 1.14 | (.49 | ) | (.49 | ) | ||||||||
October 31, 2013 | 23.24 | .45 | (.63 | ) | (.18 | ) | (.44 | ) | (.44 | ) | ||||||
October 31, 2012 | 22.48 | .52 | .79 | 1.31 | (.55 | ) | (.55 | ) | ||||||||
Class C | ||||||||||||||||
April 30, 2017* | 23.32 | .20 | (.46 | ) | (.26 | ) | (.19 | ) | (.19 | ) | ||||||
October 31, 2016 | 23.10 | .39 | .22 | .61 | (.39 | ) | (.39 | ) | ||||||||
October 31, 2015 | 23.14 | .38 | (.05 | ) | .33 | (.37 | ) | (.37 | ) | |||||||
October 31, 2014 | 22.50 | .34 | .62 | .96 | (.32 | ) | (.32 | ) | ||||||||
October 31, 2013 | 23.11 | .28 | (.61 | ) | (.33 | ) | (.28 | ) | (.28 | ) | ||||||
October 31, 2012 | 22.36 | .37 | .77 | 1.14 | (.39 | ) | (.39 | ) | ||||||||
Class E | ||||||||||||||||
April 30, 2017* | 23.41 | .28 | (.45 | ) | (.17 | ) | (.24 | ) | (.24 | ) | ||||||
October 31, 2016 | 23.19 | .57 | .22 | .79 | (.57 | ) | (.57 | ) | ||||||||
October 31, 2015 | 23.23 | .55 | (.05 | ) | .50 | (.54 | ) | (.54 | ) | |||||||
October 31, 2014 | 22.58 | .51 | .64 | 1.15 | (.50 | ) | (.50 | ) | ||||||||
October 31, 2013 | 23.19 | .45 | (.61 | ) | (.16 | ) | (.45 | ) | (.45 | ) | ||||||
October 31, 2012 | 22.44 | .54 | .76 | 1.30 | (.55 | ) | (.55 | ) | ||||||||
Class S | ||||||||||||||||
April 30, 2017* | 23.37 | .31 | (.45 | ) | (.14 | ) | (.31 | ) | (.31 | ) | ||||||
October 31, 2016 | 23.15 | .63 | .22 | .85 | (.63 | ) | (.63 | ) | ||||||||
October 31, 2015 | 23.19 | .61 | (.05 | ) | .56 | (.60 | ) | (.60 | ) | |||||||
October 31, 2014 | 22.55 | .56 | .63 | 1.19 | (.55 | ) | (.55 | ) | ||||||||
October 31, 2013 | 23.16 | .51 | (.61 | ) | (.10 | ) | (.51 | ) | (.51 | ) | ||||||
October 31, 2012 | 22.41 | .60 | .76 | 1.36 | (.61 | ) | (.61 | ) | ||||||||
Class T | ||||||||||||||||
April 30, 2017(10) | 22.68 | .08 | .22 | .30 | (.06 | ) | (.06 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
544 Tax-Exempt Bond Fund
% | % | % | ||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||
End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||
Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | |||||||
23.00 | (.73 | ) | 23,280 | .83 | .81 | 2.45 | 13 | |||||||
23.45 | 3.37 | 23,917 | .83 | .81 | 2.39 | 14 | ||||||||
23.23 | 2.17 | 19,472 | .83 | .82 | 2.35 | 28 | ||||||||
23.27 | 5.09 | 17,406 | .84 | .82 | 2.18 | 15 | ||||||||
22.62 | (.77 | ) | 16,851 | .84 | .82 | 1.95 | 23 | |||||||
23.24 | 5.89 | 14,649 | .84 | .83 | 2.28 | 29 | ||||||||
22.87 | (1.09 | ) | 27,452 | 1.58 | 1.52 | 1.74 | 13 | |||||||
23.32 | 2.67 | 32,016 | 1.58 | 1.52 | 1.68 | 14 | ||||||||
23.10 | 1.45 | 26,215 | 1.58 | 1.53 | 1.64 | 28 | ||||||||
23.14 | 4.32 | 26,956 | 1.59 | 1.53 | 1.47 | 15 | ||||||||
22.50 | (1.44 | ) | 28,147 | 1.59 | 1.53 | 1.24 | 23 | |||||||
23.11 | 5.12 | 31,628 | 1.58 | 1.54 | 1.62 | 29 | ||||||||
23.00 | (.72 | ) | 3,572 | .83 | .77 | 2.44 | 13 | |||||||
23.41 | 3.42 | 55,714 | .83 | .77 | 2.43 | 14 | ||||||||
23.19 | 2.21 | 50,598 | .83 | .78 | 2.38 | 28 | ||||||||
23.23 | 5.14 | 60,440 | .84 | .78 | 2.22 | 15 | ||||||||
22.58 | (.68 | ) | 51,073 | .84 | .78 | 1.99 | 23 | |||||||
23.19 | 5.87 | 39,034 | .83 | .79 | 2.37 | 29 | ||||||||
22.92 | (.59 | ) | 1,617,685 | .58 | .52 | 2.74 | 13 | |||||||
23.37 | 3.68 | 1,394,349 | .58 | .52 | 2.68 | 14 | ||||||||
23.15 | 2.47 | 1,212,273 | .58 | .53 | 2.64 | 28 | ||||||||
23.19 | 5.37 | 1,153,807 | .59 | .53 | 2.47 | 15 | ||||||||
22.55 | (.44 | ) | 782,853 | .59 | .53 | 2.24 | 23 | |||||||
23.16 | 6.14 | 613,006 | .58 | .54 | 2.63 | 29 | ||||||||
22.92 | 1.31 | 7,612 | .58 | .42 | 2.95 | 13 |
See accompanying notes which are an integral part of the financial statements.
Tax-Exempt Bond Fund 545
Russell Investment Company
Tax-Exempt Bond Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 411,105 |
Administration fees | 66,127 | |
Distribution fees | 21,717 | |
Shareholder servicing fees | 6,416 | |
Transfer agent fees | 192,246 | |
Trustee fees | 6,314 | |
$ | 703,925 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||||
affiliated company are as follows: | |||||||||||||||||||
Fair Value, | Change in | ||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||||
U.S. Cash Management Fund | $ | 90,038 | $ | 260,755 | $ | 343,900 | $ | 13 | $ | (11) | $ | 6,895 | $ | 118 | $ | — | |||
$ | 90,038 | $ | 260,755 | $ | 343,900 | $ | 13 | $ | (11) | $ | 6,895 | $ | 118 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 1,627,956,719 | |||
Unrealized Appreciation | $ | 40,643,811 | |||
Unrealized Depreciation | (12,718,609 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 27,925,202 |
See accompanying notes which are an integral part of the financial statements.
546 Tax-Exempt Bond Fund
Russell Investment Company
Commodity Strategies Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 987.00 | $ | 1,017.75 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 7.00 | $ | 7.10 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.42% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 984.60 | $ | 1,014.03 | |
Expenses Paid During Period* | $ | 10.68 | $ | 10.84 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 2.17% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 987.00 | $ | 1,017.80 | |
of other funds. | Expenses Paid During Period* | $ | 6.95 | $ | 7.05 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.41% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Commodity Strategies Fund 547
Russell Investment Company
Commodity Strategies Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 987.20 | $ | 1,018.99 | ||
Expenses Paid During Period* | $ | 5.76 | $ | 5.86 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.17% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 989.00 | $ | 1,019.49 | ||
Expenses Paid During Period* | $ | 1.31 | $ | 5.36 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.07% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
1.07% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 990.90 | $ | 1,019.93 | ||
Expenses Paid During Period* | $ | 4.84 | $ | 4.91 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.98% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
548 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Long-Term Investments - 0.1% | 0.502% due 05/18/17 (ç)(~) | 15,200 | 15,196 | |||||
United States Government Treasuries - 0.1% | 0.720% due 06/15/17 (ç)(~) | 7,145 | 7,139 | |||||
United States Treasury Floating Rate | ||||||||
Notes | 0.747% due 06/15/17 (ç)(~) | 4,200 | 4,196 | |||||
0.992% due 10/31/18 (Ê)(§) | 1,000 | 1,002 | Total Short-Term Investments | |||||
(cost $683,824) | 683,886 | |||||||
Total Long-Term Investments | ||||||||
(cost $1,001) | 1,002 | Total Investments 97.2% | ||||||
(identified cost $684,825) | 684,888 | |||||||
Short-Term Investments - 97.1% | ||||||||
U.S. Cash Management Fund(a) | 600,368,481 | (8) | 600,489 | Other Assets and Liabilities, | ||||
United States Treasury Bills | Net - 2.8% | 19,435 | ||||||
0.480% due 05/11/17 (ç)(~) | 600 | 600 | ||||||
0.683% due 05/11/17 (ç)(~) | 56,278 | 56,266 | Net Assets - 100.0% | 704,323 |
(a) U.S. Cash Management Fund is an investment fund which is valued daily and allows redemptions on a daily basis. The fund exists primarily
for the investment and reinvestment of cash balances held by Russell Investment Company and Russell Investment Funds. Commodity Strategies
Fund’s ownership in the U.S. Cash Management Fund includes proportional ownership in United States Treasury Notes and Bills with an
approximate aggregate values of $47,231,108 which represents 6.71% of Commodity Strategies Fund’s net assets.
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 549
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | �� | ||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Aluminum Futures | 173 | USD | 8,235 | 05/17 | 31 | ||
Aluminum Futures | 174 | USD | 8,314 | 07/17 | (167 | ) | |
Aluminum Futures | 57 | USD | 2,729 | 08/17 | (38 | ) | |
Aluminum Futures | 228 | USD | 10,977 | 12/17 | (98 | ) | |
Brent Crude Oil Futures | 372 | USD | 19,363 | 05/17 | 65 | ||
Brent Crude Oil Futures | 170 | USD | 8,942 | 07/17 | (407 | ) | |
Brent Crude Oil Futures | 52 | USD | 2,756 | 10/17 | 31 | ||
Brent Crude Oil Futures | 73 | USD | 3,873 | 01/18 | (259 | ) | |
Coffee "C" Futures | 83 | USD | 4,152 | 07/17 | (261 | ) | |
Coffee "C" Futures | 22 | USD | 1,178 | 03/18 | (64 | ) | |
Copper Futures | 238 | USD | 15,515 | 07/17 | (224 | ) | |
Copper Futures | 75 | USD | 4,937 | 12/17 | 16 | ||
Copper Futures | 62 | USD | 4,099 | 03/18 | (76 | ) | |
Corn Futures | 1,118 | USD | 20,487 | 07/17 | (408 | ) | |
Cotton No. 2 Futures | 507 | USD | 19,994 | 07/17 | 812 | ||
Cotton No. 2 Futures | 20 | USD | 746 | 12/17 | 5 | ||
Gasoline RBOB Futures | 180 | USD | 11,738 | 06/17 | (1,446 | ) | |
Gasoline RBOB Futures | 33 | USD | 1,940 | 11/17 | (26 | ) | |
Gold 100 oz. Futures | 135 | USD | 17,122 | 06/17 | 361 | ||
Gold 100 oz. Futures | 164 | USD | 20,963 | 12/17 | 182 | ||
Lead Futures | 3 | USD | 169 | 05/17 | 1 | ||
Lead Futures | 3 | USD | 169 | 07/17 | — | ||
Lean Hogs Futures | 2 | USD | 59 | 06/17 | — | ||
Lean Hogs Futures | 41 | USD | 1,012 | 12/17 | (3 | ) | |
Live Cattle Futures | 14 | USD | 695 | 06/17 | 90 | ||
Live Cattle Futures | 36 | USD | 1,717 | 12/17 | 173 | ||
Live Cattle Futures | 4 | USD | 191 | 02/18 | 11 | ||
Low Sulphur Gasoil Futures | 85 | USD | 3,891 | 07/17 | (295 | ) | |
Natural Gas Futures | 163 | USD | 5,465 | 06/17 | 104 | ||
Natural Gas Futures | 375 | USD | 13,350 | 11/17 | 207 | ||
New York Harbor ULSD Futures | 201 | USD | 12,792 | 06/17 | (1,231 | ) | |
New York Harbor ULSD Futures | 15 | USD | 990 | 11/17 | (92 | ) | |
Nickel Futures | 99 | USD | 5,587 | 05/17 | (250 | ) | |
Nickel Futures | 45 | USD | 2,545 | 06/17 | (106 | ) | |
Nickel Futures | 102 | USD | 5,782 | 07/17 | (302 | ) | |
Nickel Futures | 66 | USD | 3,780 | 12/17 | (194 | ) | |
Nickel Futures | 22 | USD | 1,265 | 02/18 | (50 | ) | |
Platinum Futures | 154 | USD | 7,305 | 07/17 | 47 | ||
Silver Futures | 102 | USD | 8,804 | 07/17 | (569 | ) | |
Silver Futures | 105 | USD | 9,158 | 12/17 | (491 | ) | |
Soybean Futures | 479 | USD | 22,901 | 07/17 | 16 | ||
Soybean Meal Futures | 441 | USD | 13,927 | 07/17 | (91 | ) | |
Soybean Oil Futures | 211 | USD | 4,014 | 07/17 | (91 | ) | |
Soybean Oil Futures | 70 | USD | 1,352 | 12/17 | (27 | ) | |
Sugar 11 Futures | 253 | USD | 4,571 | 06/17 | (186 | ) | |
Sugar 11 Futures | 77 | USD | 1,407 | 09/17 | (115 | ) | |
Wheat Futures | 666 | USD | 14,445 | 07/17 | (206 | ) | |
WTI Crude Oil Futures | 158 | USD | 7,840 | 06/17 | (484 | ) | |
WTI Crude Oil Futures | 185 | USD | 9,304 | 09/17 | (532 | ) | |
WTI Crude Oil Futures | 10 | USD | 506 | 11/17 | — | ||
WTI Crude Oil Futures | 69 | USD | 3,502 | 02/18 | (250 | ) |
See accompanying notes which are an integral part of the financial statements.
550 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
WTI Crude Oil Futures | 36 | USD | 1,813 | 11/18 | (81 | ) | |
Zinc Futures | 32 | USD | 2,092 | 05/17 | (118 | ) | |
Zinc Futures | 26 | USD | 1,705 | 07/17 | (3 | ) | |
Zinc Futures | 89 | USD | 5,858 | 12/17 | (299 | ) | |
Zinc Futures | 22 | USD | 1,446 | 03/18 | 3 | ||
Short Positions | |||||||
Aluminum Futures | 173 | USD | 8,235 | 05/17 | 155 | ||
Aluminum Futures | 57 | USD | 2,729 | 08/17 | 1 | ||
Aluminum Futures | 2 | USD | 96 | 12/17 | 1 | ||
Cocoa Futures | 307 | USD | 5,652 | 07/17 | 292 | ||
Coffee "C" Futures | 58 | USD | 2,901 | 07/17 | 150 | ||
Corn Futures | 62 | USD | 1,136 | 07/17 | — | ||
Lead Futures | 3 | USD | 169 | 05/17 | — | ||
Lean Hogs Futures | 19 | USD | 562 | 06/17 | 36 | ||
Natural Gas Futures | 40 | USD | 1,341 | 06/17 | (19 | ) | |
Natural Gas Futures | 113 | USD | 3,818 | 09/17 | (227 | ) | |
Nickel Futures | 99 | USD | 5,587 | 05/17 | 305 | ||
Nickel Futures | 45 | USD | 2,545 | 06/17 | 141 | ||
Nickel Futures | 23 | USD | 1,304 | 07/17 | 49 | ||
Nickel Futures | 1 | USD | 57 | 12/17 | — | ||
Palladium Futures | 75 | USD | 6,200 | 06/17 | (581 | ) | |
Soybean Oil Futures | 520 | USD | 9,894 | 07/17 | (70 | ) | |
Sugar 11 Futures | 446 | USD | 8,152 | 09/17 | 300 | ||
Wheat Futures | 1,007 | USD | 21,896 | 07/17 | 131 | ||
WTI Crude Oil Futures | 36 | USD | 1,821 | 11/17 | 91 | ||
Zinc Futures | 32 | USD | 2,092 | 05/17 | 28 | ||
Zinc Futures | 24 | USD | 1,580 | 12/17 | (1 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | (6,603 | ) | |||||
Total Return Swap Contracts (*) | |||||||
Amounts in thousands | |||||||
Notional | Termination | Fair Value | |||||
Underlying Reference Entity | Counterparty | Amount | Date | $ | |||
Long Reference Entity | |||||||
Bloomberg Commodity Index | Morgan Stanley | USD | 40,506 | 03/15/18 | 58 | ||
Bloomberg Commodity Index 2 Month Forward Index | BNP Paribas | USD | 28,574 | 05/23/17 | 98 | ||
Bloomberg Commodity Index 2 Month Forward Index | Morgan Stanley | USD | 10,751 | 05/23/17 | 37 | ||
Bloomberg Commodity Index 2 Month Forward Index | UBS | USD | 36,141 | 05/23/17 | 123 | ||
Bloomberg Commodity Index Total Return | Bank of America | USD | 15,932 | 05/23/17 | 55 | ||
Cargill Custom Index(#) | Cargill | USD | 158,566 | 03/29/18 | — | ||
Macquarie Commodity Customized Product(##) | Macquarie | USD | 31,015 | 05/23/17 | 108 | ||
Merrill Lynch Commodity eXtra BIN1 Index(###) | Bank of America | USD | 71,291 | 05/31/17 | (1 | ) | |
Merrill Lynch Commodity eXtra CS2T Index(####) | Bank of America | USD | 31,442 | 05/23/17 | 96 | ||
Societe Generale Commodity P04T Index(#####) | Societe Generale | USD | 27,475 | 05/23/17 | 84 | ||
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å) | 658 |
(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The fixed fees embedded in the total
return swaps held as of April 30, 2017 ranged from 0.00% to 0.15%. The floating rate fees were all based on the 3-month Treasury Bill rate plus
a fee ranging from 0.098% to 0.256%.
(#) The following table represents the individual commodity positions underlying the Cargill Custom Index swap contract:
Description | % Weights |
Gold | 11.1 |
Wheat | 9.3 |
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 551
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2017 (Unaudited)
Natural Gas | 7.5 | |
Copper | 7.1 | |
Lean Hogs | 7.1 | |
Brent Crude Oil | 6.6 | |
WTI Crude Oil | 6.1 | |
Soybeans | 5.1 | |
Aluminum | 4.7 | |
Soybean Meal | 4.5 | |
London Cocoa | 4.0 | |
Live Cattle | 3.9 | |
Silver | 3.9 | |
Heating Oil | 3.1 | |
Unleaded Gasoline | 3.0 | |
Sugar | 2.5 | |
Zinc | 2.5 | |
Cotton | 2.3 | |
Soybean Oil | 2.3 | |
Nickel | 2.2 | |
Coffee | 2.0 | |
Corn | 1.8 | |
Kansas Wheat | 1.1 | |
Cocoa | (3.7 | ) |
Total | 100.0 |
(##) The following table represents the individual commodity positions underlying the Macquarie Commodity Customized Product swap contract:
Description | % Weights |
Gold | 12.0 |
Natural Gas | 8.2 |
Copper | 7.9 |
Corn | 7.7 |
Brent Oil | 7.2 |
Crude Oil | 6.6 |
Soybeans | 5.6 |
Aluminum | 5.1 |
Live Cattle | 4.3 |
Silver | 4.3 |
Unleaded Gasoline | 3.6 |
Heating Oil | 3.4 |
Wheat | 3.4 |
Soybean Meal | 3.0 |
Zinc | 2.8 |
Sugar | 2.6 |
Soybean Oil | 2.5 |
Nickel | 2.5 |
Lean Hogs | 2.4 |
Coffee | 2.2 |
Cotton | 1.5 |
See accompanying notes which are an integral part of the financial statements.
552 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2017 (Unaudited)
Kansas Wheat | 1.2 |
Total | 100.0 |
(###) The following table represents the individual commodity positions underlying the Merrill Lynch Commodity Index eXtra BIN1 Index swap
contract:
Description | % Weights |
Gold | 18.2 |
Natural Gas | 12.3 |
Copper | 11.7 |
Brent Crude Oil | 10.9 |
WTI Cure Oil | 9.9 |
Soybeans | 8.5 |
Aluminum | 7.9 |
Live Cattle | 6.2 |
Soybean Meal | 4.4 |
Zinc | 4.1 |
Unleaded Gas | 3.5 |
Cotton | 2.4 |
Total | 100.0 |
(####) The following table represents the individual commodity positions underlying the Merrill Lynch Commodity Index eXtra CS2T Index swap
contract:
Description | % Weights |
Gold | 12.0 |
Natural Gas | 8.3 |
Copper | 7.9 |
Corn | 7.8 |
Brent Crude Oil | 7.2 |
WTI Crude Oil | 6.6 |
Soybeans | 5.6 |
Aluminum | 5.1 |
Silver | 4.3 |
Live Cattle | 4.2 |
Unleaded Gasoline | 3.6 |
Heating Oil | 3.4 |
Wheat | 3.4 |
Soybean Meal | 3.0 |
Zinc | 2.8 |
Sugar | 2.6 |
Soybean Oil | 2.5 |
Nickel | 2.5 |
Lean Hogs | 2.4 |
Coffee | 2.1 |
Cotton | 1.5 |
Kansas Wheat | 1.2 |
Total | 100.0 |
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 553
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2017 (Unaudited)
(#####) The following table represents the individual commodity positions underlying the Societe Generale Commodity PO4T Index swap contract:
Description | % Weights |
Gold | 12.0 |
Natural Gas | 8.2 |
Copper | 7.9 |
Corn | 7.7 |
Brent Crude Oil | 7.2 |
WTI Crude Oil | 6.6 |
Soybeans | 5.7 |
Aluminum | 5.1 |
Silver | 4.4 |
Live Cattle | 4.2 |
Unleaded Gasoline | 3.6 |
Heating Oil | 3.4 |
Wheat | 3.4 |
Soybean Meal | 3.0 |
Zinc | 2.8 |
Sugar | 2.6 |
Soybean Oil | 2.5 |
Nickel | 2.5 |
Lean Hogs | 2.4 |
Coffee | 2.1 |
Cotton | 1.5 |
Kansas Wheat | 1.2 |
Total | 100.0 |
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Long-Term Investments | |||||||||||||||||
United States Government Treasuries | $ | — | $ | 1,002 | $ | — | $ | — | $ | 1,002 | 0.1 | ||||||
Short-Term Investments | — | 83,397 | — | 600,489 | 683,886 | 97.1 | |||||||||||
Total Investments | — | 84,399 | — | 600,489 | 684,888 | 97.2 | |||||||||||
Other Assets and Liabilities, Net | 2.8 | ||||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 3,835 | — | — | — | 3,835 | 0.5 | |||||||||||
Total Return Swap Contracts | — | 659 | — | — | 659 | 0.1 | |||||||||||
A | |||||||||||||||||
Liabilities | |||||||||||||||||
Futures Contracts | (10,438 | ) | — | — | — | (10,438 | ) | (1.5 | ) | ||||||||
Total Return Swap Contracts | — | (1 | ) | — | — | (1 | ) | (—)* | |||||||||
Total Other Financial Instruments** | $ | (6,603 | ) | $ | 658 | $ | — | $ | — | $ | (5,945 | ) |
See accompanying notes which are an integral part of the financial statements.
554 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||
Amounts in thousands | ||||||
Fair Value | ||||||
Practical | ||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 555
Russell Investment Company
Commodity Strategies Fund
Consolidated Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Commodity | ||||
Derivatives not accounted for as hedging instruments | Contracts | |||
Location: Statement of Assets and Liabilities - Assets | ||||
Variation margin on futures contracts* | $ | 3,835 | ||
Total return swap contracts, at fair value | 659 | |||
Total | $ | 4,494 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||
Variation margin on futures contracts* | $ | 10,438 | ||
Total return swap contracts, at fair value | 1 | |||
Total | $ | 10,439 | ||
Commodity | ||||
Derivatives not accounted for as hedging instruments | Contracts | |||
Location: Statement of Operations - Net realized gain (loss) | ||||
Futures contracts | $ | 3,625 | ||
Total return swap contracts | (8,302 | ) | ||
Total | $ | (4,677 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||
Futures contracts | $ | (6,338 | ) | |
Total return swap contracts | 4,981 | |||
Total | $ | (1,357 | ) |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
556 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||
Gross | Net Amounts | ||||||||||||
Amounts | of Assets | ||||||||||||
Gross | Offset in the | Presented in | |||||||||||
Amounts of | Statement of | the Statement | |||||||||||
Recognized | Assets and | of Assets and | |||||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||||||
Futures Contracts | Variation margin on futures contracts | $ | 6,857 | $ | — | $ | 6,857 | ||||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 659 | — | 659 | |||||||||
Total Financial and Derivative Assets | 7,516 | — | 7,516 | ||||||||||
Financial and Derivative Assets not subject to a netting agreement | (6,857 | ) | — | (6,857 | ) | ||||||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 659 | $ | — | $ | 659 | |||||||
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||||
Gross Amounts Not Offset in | |||||||||||||
the Statement of Assets and | |||||||||||||
Liabilities | |||||||||||||
Net Amounts | |||||||||||||
of Assets | |||||||||||||
Presented in | |||||||||||||
the Statement | Financial and | ||||||||||||
of Assets and | Derivative | Collateral | |||||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||||
Bank of America | $ | 151 | $ | 1 | $ | — | $ | 150 | |||||
BNP Paribas | 98 | — | — | 98 | |||||||||
Macquarie | 108 | — | 108 | — | |||||||||
Morgan Stanley | 94 | — | — | 94 | |||||||||
Societe Generale | 84 | — | — | 84 | |||||||||
UBS | 124 | — | — | 124 | |||||||||
Total | $ | 659 | $ | 1 | $ | 108 | $ | 550 |
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 557
Russell Investment Company
Commodity Strategies Fund
Consolidated Balance Sheet Offsetting of Financial and Derivative Instruments,
continued —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Liabilities | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | ||||||
Futures Contracts | Variation margin on futures contracts | $ | 23 | $ | — | $ | 23 | |||
Total Return Swap Contracts | Total return swap contracts, at fair value | 1 | — | 1 | ||||||
Total Financial and Derivative Liabilities | 24 | — | 24 | |||||||
Financial and Derivative Liabilities not subject to a netting agreement | (23 | ) | — | (23 | ) | |||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 1 | $ | — | $ | 1 | ||||
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | ||||||||||
Gross Amounts Not Offset in | ||||||||||
the Statement of Assets and | ||||||||||
Liabilities | ||||||||||
Net Amounts | ||||||||||
of Liabilities | ||||||||||
Presented in | ||||||||||
the Statement | Financial and | |||||||||
of Assets and | Derivative | Collateral | ||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | ||||||
Bank of America | $ | 1 | $ | 1 | $ | — | $ | — | ||
Total | $ | 1 | $ | 1 | $ | — | $ | — |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
558 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
l
Consolidated Statement of Assets and Liabilities(†) — April 30, 2017
(Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 684,825 |
Investments, at fair value(>) | 684,888 | |
Cash | 270 | |
Cash (restricted)(a) | 27,853 | |
Receivables: | ||
Dividends and interest | 51 | |
Dividends from affiliated funds | 437 | |
Fund shares sold | 1,113 | |
Variation margin on futures contracts | 6,857 | |
Prepaid expenses | 8 | |
Total return swap contracts, at fair value(8) | 659 | |
Total assets | 722,136 | |
Liabilities | ||
Payables: | ||
Due to broker (b)(c) | 12,584 | |
Investments purchased | 3,791 | |
Fund shares redeemed | 301 | |
Accrued fees to affiliates | 591 | |
Other accrued expenses | 522 | |
Variation margin on futures contracts | 23 | |
Total return swap contracts, at fair value(8) | 1 | |
Total liabilities | 17,813 | |
Net Assets | $ | 704,323 |
(†) The Statement of Assets and Liabilities is consolidated and includes the balances of Cayman Commodity Strategies Fund Ltd. (wholly owned
subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to note 3 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 559
Russell Investment Company
Commodity Strategies Fund
Consolidated Statement of Assets and Liabilities(†) , continued — April 30, 2017
(Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (4,187 | ) |
Accumulated net realized gain (loss) | (4,663 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 63 | ||
Futures contracts | (6,603 | ) | |
Total return swap contracts | 658 | ||
Shares of beneficial interest | 1,301 | ||
Additional paid-in capital | 717,754 | ||
Net Assets | $ | 704,323 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 5.33 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 5.66 | |
Class A — Net assets | $ | 6,968,718 | |
Class A — Shares outstanding ($.01 par value) | 1,307,794 | ||
Net asset value per share: Class C(#) | $ | 5.10 | |
Class C — Net assets | $ | 3,511,497 | |
Class C — Shares outstanding ($.01 par value) | 689,132 | ||
Net asset value per share: Class E(#) | $ | 5.33 | |
Class E — Net assets | $ | 263,383 | |
Class E — Shares outstanding ($.01 par value) | 49,442 | ||
Net asset value per share: Class S(#) | $ | 5.40 | |
Class S — Net assets | $ | 505,590,014 | |
Class S — Shares outstanding ($.01 par value) | 93,568,376 | ||
Net asset value per share: Class T(#) | $ | 5.40 | |
Class T — Net assets | $ | 837,592 | |
Class T — Shares outstanding ($.01 par value) | 155,210 | ||
Net asset value per share: Class Y(#) | $ | 5.46 | |
Class Y — Net assets | $ | 187,151,845 | |
Class Y — Shares outstanding ($.01 par value) | 34,303,972 | ||
Amounts in thousands | |||
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 600,489 | |
(8) Total return swap contracts – premium paid (received) | $ | — | |
(a) Cash Collateral for Swaps | $ | 27,853 | |
(b) Due to Broker for Futures | $ | 7,184 | |
(c) Due to Broker for Swaps | $ | 5,400 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. | |||
(†) The Statement of Assets and Liabilities is consolidated and includes the balances of Cayman Commodity Strategies Fund Ltd. (wholly owned | |||
subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to note 3 in the Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
560 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Statement of Operations(†) — For the Period Ended April 30, 2017
(Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 305 | |
Dividends from affiliated funds | 2,243 | ||
Interest | 100 | ||
Total investment income | 2,648 | ||
Expenses | |||
Advisory fees | 5,374 | ||
Administrative fees | 209 | ||
Custodian fees | 218 | ||
Distribution fees - Class A | 9 | ||
Distribution fees - Class C | 15 | ||
Transfer agent fees - Class A | 7 | ||
Transfer agent fees - Class C | 4 | ||
Transfer agent fees - Class E | 5 | ||
Transfer agent fees - Class S | 509 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 4 | ||
Professional fees | 81 | ||
Registration fees | 45 | ||
Shareholder servicing fees - Class C | 5 | ||
Shareholder servicing fees - Class E | 6 | ||
Trustees’ fees | 12 | ||
Printing fees | 80 | ||
Miscellaneous | 32 | ||
Expenses before reductions | 6,615 | ||
Expense reductions | (2,548 | ) | |
Net expenses | 4,067 | ||
Net investment income (loss) | (1,419 | ) | |
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 65 | ||
Futures contracts | 3,625 | ||
Total return swap contracts | (8,302 | ) | |
Net realized gain (loss) | (4,612 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments | (65 | ) | |
Futures contracts | (6,338 | ) | |
Total return swap contracts | 4,981 | ||
Net change in unrealized appreciation (depreciation) | (1,422 | ) | |
Net realized and unrealized gain (loss) | (6,034 | ) | |
Net Increase (Decrease) in Net Assets from Operations | $ | (7,453 | ) |
** Less than $500. | |||
(†) The Statement of Operations is consolidated and includes the balances of Cayman Commodity Strategies Fund Ltd. (wholly owned | |||
subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to note 3 in the Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 561
Russell Investment Company
Commodity Strategies Fund
Consolidated Statements of Changes in Net Assets(†)
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | (1,419 | ) | $ | (5,490 | ) |
Net realized gain (loss) | (4,612 | ) | (15,754 | ) | ||
Net change in unrealized appreciation (depreciation) | (1,422 | ) | (4,791 | ) | ||
Net increase (decrease) in net assets from operations | (7,453 | ) | (26,035 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 1,261 | (43,155 | ) | |||
Total Net Increase (Decrease) in Net Assets | (6,192 | ) | (69,190 | ) | ||
Net Assets | ||||||
Beginning of period | 710,515 | 779,705 | ||||
End of period | $ | 704,323 | $ | 710,515 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (4,187 | ) | $ | (2,768 | ) |
(†) The Statements of Changes in Net Assets is consolidated and includes the balances of Cayman Commodity Strategies Fund
Ltd. (wholly owned subsidiary). Accordingly, all interfund balances and transactions have been eliminated.
Refer to note 3 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
562 Commodity Strategies Fund
Russell Investment Company
Commodity Strategies Fund
Consolidated Statements of Changes in Net Assets(†), continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 204 | $ | 1,116 | 323 | $ | 1,685 | ||||||
Payments for shares redeemed | (198 | ) | (1,091 | ) | (423 | ) | (2,206 | ) | ||||
Net increase (decrease) | 6 | 25 | (100 | ) | (521 | ) | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 57 | 304 | 116 | 586 | ||||||||
Payments for shares redeemed | (180 | ) | (949 | ) | (235 | ) | (1,188 | ) | ||||
Net increase (decrease) | (123 | ) | (645 | ) | (119 | ) | (602 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 59 | 321 | 476 | 2,522 | ||||||||
Payments for shares redeemed | (1,820 | ) | (10,246 | ) | (925 | ) | (4,971 | ) | ||||
Net increase (decrease) | (1,761 | ) | (9,925 | ) | (449 | ) | (2,449 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 14,224 | 79,310 | 31,464 | 167,349 | ||||||||
Payments for shares redeemed | (12,108 | ) | (67,464 | ) | (42,678 | ) | (226,048 | ) | ||||
Net increase (decrease) | 2,116 | 11,846 | (11,214 | ) | (58,699 | ) | ||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 155 | 858 | — | — | ||||||||
Payments for shares redeemed | (—)** | (1 | ) | — | — | |||||||
Net increase (decrease) | 155 | 857 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 2,942 | 16,181 | 9,215 | 50,350 | ||||||||
Payments for shares redeemed | (2,997 | ) | (17,078 | ) | (5,717 | ) | (31,234 | ) | ||||
Net increase (decrease) | (55 | ) | (897 | ) | 3,498 | 19,116 | ||||||
Total increase (decrease) | 338 | $ | 1,261 | (8,384 | ) | $ | (43,155 | ) |
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
** Less than 500 shares.
(†) The Statements of Changes in Net Assets is consolidated and includes the balances of Cayman Commodity Strategies Fund
Ltd. (wholly owned subsidiary). Accordingly, all interfund balances and transactions have been eliminated.
Refer to note 3 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 563
Russell Investment Company
Commodity Strategies Fund
Consolidated Financial Highlights — For the Periods Ended(†)
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | $ | ||||||||||||||
Beginning of | Income | and Unrealized | Investment | from Net | from Net | Return of | ||||||||||||||
Period | (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | Capital | ||||||||||||||
Class A | ||||||||||||||||||||
April 30, 2017* | 5.40 | (.02 | ) | (.05 | ) | (.07 | ) | — | — | — | ||||||||||
October 31, 2016 | 5.58 | (.06 | ) | (.12 | ) | (.18 | ) | — | — | — | ||||||||||
October 31, 2015 | 7.64 | (.09 | ) | (1.97 | ) | (2.06 | ) | — | — | — | ||||||||||
October 31, 2014 | 8.35 | (.12 | ) | (.59 | ) | (.71 | ) | —(f) | —(f) | — | ||||||||||
October 31, 2013 | 9.50 | (.12 | ) | (1.03 | ) | (1.15 | ) | — | — | — | ||||||||||
October 31, 2012 | 10.55 | (.13 | ) | (.53 | ) | (.66 | ) | (.15 | ) | (.02 | ) | (.22 | ) | |||||||
Class C | ||||||||||||||||||||
April 30, 2017* | 5.18 | (.04 | ) | (.04 | ) | (.08 | ) | — | — | — | ||||||||||
October 31, 2016 | 5.40 | (.09 | ) | (.13 | ) | (.22 | ) | — | — | — | ||||||||||
October 31, 2015 | 7.44 | (.13 | ) | (1.91 | ) | (2.04 | ) | — | — | — | ||||||||||
October 31, 2014 | 8.20 | (.18 | ) | (.58 | ) | (.76 | ) | —(f) | —(f) | — | ||||||||||
October 31, 2013 | 9.39 | (.19 | ) | (1.00 | ) | (1.19 | ) | — | — | — | ||||||||||
October 31, 2012 | 10.45 | (.20 | ) | (.53 | ) | (.73 | ) | (.09 | ) | (.02 | ) | (.22 | ) | |||||||
Class E | ||||||||||||||||||||
April 30, 2017* | 5.40 | (.02 | ) | (.05 | ) | (.07 | ) | — | — | — | ||||||||||
October 31, 2016 | 5.58 | (.06 | ) | (.12 | ) | (.18 | ) | — | — | — | ||||||||||
October 31, 2015 | 7.63 | (.09 | ) | (1.96 | ) | (2.05 | ) | — | — | — | ||||||||||
October 31, 2014 | 8.35 | (.12 | ) | (.60 | ) | (.72 | ) | —(f) | —(f) | — | ||||||||||
October 31, 2013 | 9.50 | (.12 | ) | (1.03 | ) | (1.15 | ) | — | — | — | ||||||||||
October 31, 2012 | 10.54 | (.13 | ) | (.52 | ) | (.65 | ) | (.15 | ) | (.02 | ) | (.22 | ) | |||||||
Class S | ||||||||||||||||||||
April 30, 2017* | 5.47 | (.01 | ) | (.06 | ) | (.07 | ) | — | — | — | ||||||||||
October 31, 2016 | 5.64 | (.04 | ) | (.13 | ) | (.17 | ) | — | — | — | ||||||||||
October 31, 2015 | 7.69 | (.07 | ) | (1.98 | ) | (2.05 | ) | — | — | — | ||||||||||
October 31, 2014 | 8.40 | (.10 | ) | (.61 | ) | (.71 | ) | —(f) | —(f) | — | ||||||||||
October 31, 2013 | 9.52 | (.10 | ) | (1.02 | ) | (1.12 | ) | — | — | — | ||||||||||
October 31, 2012 | 10.58 | (.11 | ) | (.53 | ) | (.64 | ) | (.18 | ) | (.02 | ) | (.22 | ) | |||||||
Class T | ||||||||||||||||||||
April 30, 2017(10) | 5.46 | —(f) | (.06 | ) | (.06 | ) | — | — | — | |||||||||||
Class Y | ||||||||||||||||||||
April 30, 2017* | 5.52 | (.01 | ) | (.05 | ) | (.06 | ) | — | — | — | ||||||||||
October 31, 2016 | 5.68 | (.03 | ) | (.13 | ) | (.16 | ) | — | — | — | ||||||||||
October 31, 2015 | 7.73 | (.06 | ) | (1.99 | ) | (2.05 | ) | — | — | — | ||||||||||
October 31, 2014 | 8.42 | (.08 | ) | (.61 | ) | (.69 | ) | —(f) | —(f) | — | ||||||||||
October 31, 2013 | 9.54 | (.08 | ) | (1.04 | ) | (1.12 | ) | — | — | — | ||||||||||
October 31, 2012 | 10.59 | (.09 | ) | (.53 | ) | (.62 | ) | (.19 | ) | (.02 | ) | (.22 | ) | |||||||
See accompanying notes which are an integral part of the financial statements.
564 Commodity Strategies Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate | ||||||||||
— | 5.33 | (1.30 | ) | 6,969 | 2.13 | 1.42 | (.69 | ) | — | |||||||||
— | 5.40 | (3.23 | ) | 7,027 | 2.13 | 1.46 | (1.07 | ) | — | |||||||||
— | 5.58 | (26.96 | ) | 7,826 | 2.09 | 1.48 | (1.39 | ) | — | |||||||||
—(f) | 7.64 | (8.50 | ) | 11,212 | 2.08 | 1.52 | (1.41 | ) | 302 | |||||||||
— | 8.35 | (12.11 | ) | 20,224 | 2.04 | 1.52 | (1.37 | ) | 145 | |||||||||
(.39 | ) | 9.50 | (6.28 | ) | 21,301 | 2.08 | 1.55 | (1.39 | ) | 60 | ||||||||
— | 5.10 | (1.54 | ) | 3,511 | 2.88 | 2.17 | (1.50 | ) | — | |||||||||
— | 5.18 | (4.07 | ) | 4,210 | 2.87 | 2.21 | (1.82 | ) | — | |||||||||
— | 5.40 | (27.42 | ) | 5,029 | 2.83 | 2.23 | (2.14 | ) | — | |||||||||
—(f) | 7.44 | (9.26 | ) | 8,454 | 2.83 | 2.27 | (2.16 | ) | 302 | |||||||||
— | 8.20 | (12.67 | ) | 11,436 | 2.79 | 2.27 | (2.12 | ) | 145 | |||||||||
(.33 | ) | 9.39 | (7.01 | ) | 14,104 | 2.83 | 2.30 | (2.15 | ) | 60 | ||||||||
— | 5.33 | (1.30 | ) | 263 | 2.12 | 1.41 | (.70 | ) | — | |||||||||
— | 5.40 | (3.23 | ) | 9,775 | 2.12 | 1.46 | (1.07 | ) | — | |||||||||
— | 5.58 | (26.87 | ) | 12,615 | 2.09 | 1.48 | (1.39 | ) | — | |||||||||
—(f) | 7.63 | (8.62 | ) | 17,427 | 2.08 | 1.52 | (1.41 | ) | 302 | |||||||||
— | 8.35 | (12.11 | ) | 20,652 | 2.04 | 1.52 | (1.36 | ) | 145 | |||||||||
(.39 | ) | 9.50 | (6.23 | ) | 17,078 | 2.08 | 1.54 | (1.38 | ) | 60 | ||||||||
— | 5.40 | (1.28 | ) | 505,590 | 1.88 | 1.17 | (.43 | ) | — | |||||||||
— | 5.47 | (3.01 | ) | 500,004 | 1.87 | 1.21 | (.82 | ) | — | |||||||||
— | 5.64 | (26.66 | ) | 579,005 | 1.84 | 1.23 | (1.14 | ) | — | |||||||||
—(f) | 7.69 | (8.45 | ) | 793,989 | 1.83 | 1.27 | (1.16 | ) | 302 | |||||||||
— | 8.40 | (11.76 | ) | 830,645 | 1.79 | 1.27 | (1.12 | ) | 145 | |||||||||
(.42 | ) | 9.52 | (6.10 | ) | 762,582 | 1.83 | 1.30 | (1.14 | ) | 60 | ||||||||
— | 5.40 | (1.10 | ) | 838 | 1.88 | 1.07 | (.76 | ) | — | |||||||||
— | 5.46 | (.91 | ) | 187,152 | 1.69 | .98 | (.25 | ) | — | |||||||||
— | 5.52 | (2.99 | ) | 189,499 | 1.68 | 1.02 | (.62 | ) | — | |||||||||
— | 5.68 | (26.52 | ) | 175,230 | 1.64 | 1.04 | (.95 | ) | — | |||||||||
—(f) | 7.73 | (8.19 | ) | 219,596 | 1.63 | 1.08 | (.97 | ) | 302 | |||||||||
— | 8.42 | (11.74 | ) | 351,831 | 1.60 | 1.08 | (.93 | ) | 145 | |||||||||
(.43 | ) | 9.54 | (5.82 | ) | 445,434 | 1.65 | 1.11 | (.95 | ) | 60 |
See accompanying notes which are an integral part of the financial statements.
Commodity Strategies Fund 565
Russell Investment Company
Comodity Strategies Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 472,579 |
Administration fees | 28,385 | |
Distribution fees | 3,756 | |
Shareholder servicing fees | 820 | |
Transfer agent fees | 82,725 | |
Trustee fees | 2,683 | |
$ | 590,948 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||
affiliated company are as follows: | ||||||||||||||||
Fair Value, | Change in | |||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||
U.S. Cash Management Fund | 653,773 | 805,339 | 858,623 | 66 | (66) | 600,489 | 2,243 | — | ||||||||
$ | 653,773 | $ | 805,339 | $ | 858,623 | $ | 66 | $ | (66) | $ 600,489 | $ | 2,243 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 683,476,610 | |
Unrealized Appreciation | $ | 1,411,535 | |
Unrealized Depreciation | — | ||
Net Unrealized Appreciation (Depreciation) | $ | 1,411,535 |
See accompanying notes which are an integral part of the financial statements.
566 Comodity Strategies Fund
Russell Investment Company
Global Infrastructure Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,087.00 | $ | 1,017.46 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 7.66 | $ | 7.40 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.48% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,083.50 | $ | 1,013.74 | |
Expenses Paid During Period* | $ | 11.52 | $ | 11.13 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 2.23% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,087.00 | $ | 1,017.50 | |
of other funds. | Expenses Paid During Period* | $ | 7.61 | $ | 7.35 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.47% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Global Infrastructure Fund 567
Russell Investment Company
Global Infrastructure Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,089.10 | $ | 1,018.70 | ||
Expenses Paid During Period* | $ | 6.37 | $ | 6.16 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.23% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,044.00 | $ | 1,019.19 | ||
Expenses Paid During Period* | $ | 1.42 | $ | 5.66 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.13% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
1.13% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/230 (to reflect the | ||||||
on-half year period). | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,090.10 | $ | 1,019.59 | ||
Expenses Paid During Period* | $ | 5.44 | $ | 5.26 | ||
* Expenses are equal to the Fund's annualized expense ratio of 1.05% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
568 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Common Stocks - 95.0% | China Resources Gas Group, Ltd. | 718,815 | 2,428 | |||||||
Australia - 8.5% | COSCO SHIPPING Ports, Ltd. | 7,276,647 | 7,965 | |||||||
APA Group | 489,860 | 3,359 | ENN Energy Holdings, Ltd. | 108,207 | 586 | |||||
Aurizon Holdings, Ltd. | 518,399 | 1,998 | Hopewell Highway Infrastructure, Ltd. | 333,644 | 193 | |||||
AusNet Services(Æ) | 5,623,837 | 7,374 | Jiangsu Expressway Co., Ltd. Class H | 5,053,953 | 7,463 | |||||
Macquarie Atlas Roads Group | 693,404 | 2,773 | Towngas China Co., Ltd.(Æ) | 72,749 | 43 | |||||
Spark Infrastructure Group | 5,588,962 | 10,420 | 34,805 | |||||||
Sydney Airport | 852,772 | 4,399 | ||||||||
Transurban Group - ADR(Æ) | 6,656,977 | 60,799 | France - 4.8% | |||||||
91,122 | Aeroports de Paris | 110,306 | 14,714 | |||||||
Groupe Eurotunnel SE | 2,604,617 | 28,636 | ||||||||
Austria - 0.2% | Rubis SCA | 39,180 | 3,982 | |||||||
Flughafen Wien AG | 59,624 | 2,163 | Suez Environnement Co. | 686 | 11 | |||||
Oesterreichische Post AG | 3,877 | 164 | Veolia Environnement SA | 937 | 18 | |||||
2,327 | Vinci SA | 49,947 | 4,255 | |||||||
51,616 | ||||||||||
Belgium - 0.0% | ||||||||||
Elia System Operator SA | 5,387 | 286 | Germany - 1.5% | |||||||
Fraport AG Frankfurt Airport Services | ||||||||||
Bermuda - 0.1% | Worldwide | 175,590 | 13,804 | |||||||
Brookfield Renewable Partners, LP(Ñ) | 16,763 | 512 | Innogy SE(Þ) | 54,540 | 2,005 | |||||
China Everbright Water, Ltd.(Ñ) | 984,486 | 327 | 15,809 | |||||||
839 | ||||||||||
Hong Kong - 0.9% | ||||||||||
Brazil - 1.0% | Cheung Kong Infrastructure Holdings, | |||||||||
Alupar Investimento SA | 62,799 | 373 | Ltd. | 47,097 | 412 | |||||
CCR SA | 438,918 | 2,448 | CLP Holdings, Ltd. | 390,311 | 4,116 | |||||
Cia de Saneamento Basico do Estado de | Hong Kong & China Gas Co., Ltd. | 413,890 | 827 | |||||||
Sao Paulo(Æ) | 95,465 | 880 | MTR Corp., Ltd. | 78,150 | 450 | |||||
CPFL Energias Renovaveis SA(Æ) | 34,387 | 136 | Power Assets Holdings, Ltd. | 439,630 | 3,954 | |||||
Energisa SA | 103,227 | 740 | 9,759 | |||||||
Transmissora Alianca de Energia | ||||||||||
Eletrica SA | 856,243 | 6,207 | India - 0.3% | |||||||
10,784 | Power Grid Corp. of India, Ltd. | 925,169 | 2,995 | |||||||
Canada - 9.3% | Indonesia - 0.1% | |||||||||
Brookfield Infrastructure Partners, LP(Ñ) | 73,503 | 2,894 | Sarana Menara Nusantara Tbk PT(Æ) | 3,359,887 | 978 | |||||
Canadian Pacific Railway, Ltd. | 4,856 | 744 | Tower Bersama Infrastructure Tbk PT | 1,076,450 | 472 | |||||
Emera, Inc. | 78,998 | 2,734 | 1,450 | |||||||
Enbridge, Inc. | 1,145,494 | 47,480 | ||||||||
Inter Pipeline, Ltd. | 54,130 | 1,103 | Italy - 5.0% | |||||||
Keyera Corp. | 85,445 | 2,365 | Atlantia SpA | 1,699,282 | 43,101 | |||||
Pembina Pipeline Corp. | 166,153 | 5,295 | Ei Towers SpA | 24,561 | 1,418 | |||||
Progressive Waste Solutions, Ltd. | 89,850 | 8,268 | Hera SpA | 149,589 | 428 | |||||
TransCanada Corp. | 574,030 | 26,654 | Infrastrutture Wireless Italiane SpA(Þ) | 927,251 | 5,131 | |||||
Veresen, Inc. | 178,895 | 1,996 | Snam Rete Gas SpA | 760,948 | 3,364 | |||||
Westshore Terminals Investment Corp. | 45,506 | 795 | 53,442 | |||||||
100,328 | ||||||||||
Japan - 3.2% | ||||||||||
Chile - 0.2% | Central Japan Railway Co. | 13,282 | 2,227 | |||||||
Aguas Andinas SA Class A | 3,987,968 | 2,255 | East Japan Railway Co. | 126,606 | 11,317 | |||||
Enel Chile SA - ADR | 34,368 | 187 | Japan Airport Terminal Co., Ltd.(Ñ) | 38,660 | 1,343 | |||||
2,442 | Kamigumi Co., Ltd. | 721,633 | 6,557 | |||||||
Park24 Co., Ltd. | 78,185 | 2,018 | ||||||||
China - 3.2% | Tokyo Gas Co., Ltd. | 2,033,000 | 9,450 | |||||||
Beijing Capital International Airport Co., | West Japan Railway Co. | 17,800 | 1,189 | |||||||
Ltd. Class H | 918,000 | 1,297 | 34,101 | |||||||
China Everbright International, Ltd. | 1,796,746 | 2,427 | ||||||||
China Merchants Port Holdings Co., Ltd. | 4,340,413 | 12,403 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 569
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Malaysia - 0.0% | Switzerland - 1.8% | ||||||||
Petronas Gas BHD | 2,200 | 9 | Flughafen Zuerich AG | 85,497 | 18,826 | ||||
Westports Holdings BHD | 53,876 | 50 | |||||||
59 | United Kingdom - 5.7% | ||||||||
Centrica PLC | 698,050 | 1,789 | |||||||
Mexico - 1.9% | National Grid PLC | 2,734,060 | 35,413 | ||||||
Grupo Aeroportuario del Centro Norte | National Grid PLC - ADR(Ñ) | 63,234 | 4,102 | ||||||
SAB de CV - ADR(Æ) | 54,211 | 2,405 | Pennon Group PLC | 64,327 | 714 | ||||
Grupo Aeroportuario del Pacifico SAB de | Scottish & Southern Energy PLC | 443,624 | 7,990 | ||||||
CV Class B | 726,811 | 7,475 | Severn Trent PLC Class H | 195,424 | 5,884 | ||||
Grupo Aeroportuario del Pacifico SAB de | United Utilities Group PLC | 460,963 | 5,811 | ||||||
CV - ADR(Ñ) | 41,020 | 4,220 | 61,703 | ||||||
Infraestructura Energetica Nova SAB | |||||||||
de CV | 227,795 | 1,064 | United States - 36.0% | ||||||
OHL Mexico SAB de CV | 3,179,783 | 3,905 | Alliant Energy Corp. | 104,250 | 4,099 | ||||
Promotora y Operadora de | Ameren Corp. | 85,029 | 4,650 | ||||||
Infraestructura SAB de CV | 57,840 | 617 | American Electric Power Co., Inc. | 208,947 | 14,173 | ||||
Promotora y Operadora de | American Tower Corp.(ö) | 47,762 | 6,015 | ||||||
Infraestructura SAB de CV Class L | 49,225 | 410 | American Water Works Co., Inc. | 48,812 | 3,893 | ||||
20,096 | Antero Midstream Partners, LP | 22,301 | 759 | ||||||
Atmos Energy Corp. | 74,485 | 6,035 | |||||||
Netherlands - 0.8% | Boardwalk Pipeline Partners, LP | 360,446 | 6,538 | ||||||
Koninklijke Vopak NV | 179,823 | 8,107 | CenterPoint Energy, Inc. | 36,914 | 1,053 | ||||
Cheniere Energy, Inc.(Æ) | 117,568 | 5,332 | |||||||
New Zealand - 1.2% | Chesapeake Utilities Corp. | 5,704 | 418 | ||||||
Auckland International Airport, Ltd. | 1,912,403 | 9,065 | CMS Energy Corp. | 259,747 | 11,793 | ||||
Infratil, Ltd. | 840,233 | 1,701 | Connecticut Water Service, Inc. | 3,499 | 188 | ||||
Port of Tauranga, Ltd.(Ñ) | 596,550 | 1,683 | Covanta Holding Corp. | 34,461 | 501 | ||||
12,449 | Crown Castle International Corp.(ö) | 188,278 | 17,811 | ||||||
CSX Corp. | 18,139 | 922 | |||||||
Norway - 0.0% | Digital Realty Trust, Inc.(ö) | 4,535 | 521 | ||||||
Hafslund ASA Class B | 31,360 | 362 | Dominion Resources, Inc. | 273,665 | 21,190 | ||||
DTE Energy Co. | 21,040 | 2,201 | |||||||
Philippines - 0.1% | Duke Energy Corp. | 62,303 | 5,140 | ||||||
International Container Terminal | Edison International | 65,070 | 5,204 | ||||||
Services, Inc. | 369,354 | 658 | El Paso Electric Co. | 46,114 | 2,379 | ||||
Enbridge Energy Management LLC(Æ) | 322,604 | 5,988 | |||||||
Singapore - 0.7% | Entergy Corp. | 4,427 | 338 | ||||||
CitySpring Infrastructure Trust(Æ) | 5,076,577 | 1,890 | Enterprise Products Partners, LP(Ñ) | 506,340 | 13,833 | ||||
ComfortDelGro Corp., Ltd. | 863,444 | 1,691 | Equinix, Inc.(ö) | 12,021 | 5,021 | ||||
Hutchison Port Holdings Trust Class U | 2,343,627 | 950 | Eversource Energy | 191,908 | 11,399 | ||||
Keppel DC REIT(Æ)(ö) | 115,466 | 102 | Genesee & Wyoming, Inc. Class A(Æ) | 72,920 | 4,941 | ||||
Parkway Life Real Estate Investment | Great Plains Energy, Inc. | 99,121 | 2,933 | ||||||
Trust(Æ)(ö) | 815,736 | 1,494 | Hess Midstream Partners LP(Æ) | 70,368 | 1,800 | ||||
SATS, Ltd. | 314,385 | 1,145 | Kansas City Southern | 44,475 | 4,006 | ||||
7,272 | Kinder Morgan, Inc. | 2,105,190 | 43,430 | ||||||
Macquarie Infrastructure Corp. | 51,361 | 4,179 | |||||||
Spain - 8.5% | Magellan Midstream Partners, LP | 55,722 | 4,140 | ||||||
Abertis Infraestructuras SA | 1,476,409 | 25,972 | National Fuel Gas Co. | 4,970 | 275 | ||||
Aena SA(Ñ)(Þ) | 198,668 | 35,040 | New Jersey Resources Corp. | 11,002 | 444 | ||||
Cellnex Telecom SA(Þ) | 98,500 | 1,740 | NextEra Energy, Inc. | 268,760 | 35,896 | ||||
Enagas SA | 160,006 | 4,209 | NiSource, Inc. | 463,006 | 11,228 | ||||
Endesa SA - ADR | 33,452 | 788 | Noble Midstream Partners, LP | 13,967 | 700 | ||||
Ferrovial SA | 391,006 | 8,320 | Norfolk Southern Corp. | 5,925 | 696 | ||||
Iberdrola SA | 1,873,496 | 13,470 | ONE Gas, Inc. | 5,893 | 406 | ||||
Red Electrica Corp. SA | 95,274 | 1,858 | ONEOK, Inc. | 38,134 | 2,006 | ||||
91,397 | Pattern Energy Group, Inc. Class A | 49,012 | 1,079 | ||||||
PG&E Corp. | 524,720 | 35,182 |
See accompanying notes which are an integral part of the financial statements.
570 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | |||||||
Amount ($) | Value | |||||||
or Shares | $ | |||||||
Pinnacle West Capital Corp. | 30,606 | 2,604 | ||||||
Plains All American Pipeline, LP | 54,560 | 1,596 | ||||||
Plains GP Holdings, LP Class A | 90,536 | 2,695 | ||||||
PNM Resources, Inc. | 4,963 | 185 | ||||||
Rice Midstream Partners, LP(Ñ) | 30,936 | 780 | ||||||
SBA Communications Corp.(Æ)(ö) | 47,862 | 6,054 | ||||||
Sempra Energy | 101,854 | 11,512 | ||||||
Southern Co. (The) | 10,169 | 506 | ||||||
Southwest Gas Holdings, Inc. | 27,903 | 2,337 | ||||||
Targa Resources Corp. | 108,214 | 5,966 | ||||||
UGI Corp. | 38,491 | 1,931 | ||||||
Union Pacific Corp. | 44,646 | 4,999 | ||||||
Unitil Corp. | 16,714 | 809 | ||||||
Waste Management, Inc. | 10,645 | 775 | ||||||
WEC Energy Group, Inc. | 98,969 | 5,990 | ||||||
Williams Cos., Inc. (The) | 383,855 | 11,757 | ||||||
Xcel Energy, Inc. | 335,263 | 15,104 | ||||||
386,335 | ||||||||
Total Common Stocks | ||||||||
(cost $851,987) | 1,019,369 | |||||||
Investments in Other Funds - 0.1% | ||||||||
3i Infrastructure PLC | 321,179 | 810 | ||||||
John Laing Infrastructure Fund, Ltd. | 531,013 | 946 | ||||||
Total Investments in Other Funds | ||||||||
(cost $1,647) | 1,756 | |||||||
Short | -Term Investments - 2.6% | |||||||
United States - 2.6% | ||||||||
U.S. Cash Management Fund | 27,916,626 | (8) | 27,922 | |||||
Total Short-Term Investments | ||||||||
(cost $27,921) | 27,922 | |||||||
Other Securities - 5.1% | ||||||||
U.S. Cash Collateral Fund(×) | 54,454,724 | (8) | 54,455 | |||||
Total Other Securities | ||||||||
(cost $54,455) | 54,455 | |||||||
Total Investments 102.8% | ||||||||
(identified cost $936,010) | 1,103,502 | |||||||
Other Assets and Liabilities, Net | ||||||||
- | (2.8%) | (30,383 | ) | |||||
Net Assets - 100.0% | 1,073,119 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 571
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||
Contracts | Amount | Date | $ | ||||||
Long Positions | |||||||||
CAC40 Euro Index Futures | 47 | EUR | 2,451 | 05/17 | 52 | ||||
DAX Index Futures | 2 | EUR | 623 | 06/17 | (1 | ) | |||
EURO STOXX 50 Index Futures | 55 | EUR | 1,929 | 06/17 | 31 | ||||
FTSE 100 Index Futures | 32 | GBP | 2,293 | 06/17 | (27 | ) | |||
Hang Seng Index Futures | 18 | HKD | 22,105 | 05/17 | 17 | ||||
IBEX 35 Index Futures | 60 | EUR | 6,437 | 05/17 | 115 | ||||
S&P E-Mini Utilities Select Sector Index Futures | 400 | USD | 20,776 | 06/17 | 78 | ||||
S&P/TSX 60 Index Futures | 33 | CAD | 6,051 | 06/17 | 13 | ||||
SPI 200 Index Futures | 49 | AUD | 7,244 | 06/17 | 56 | ||||
TOPIX Index Futures | 14 | JPY | 214,200 | 06/17 | (6 | ) | |||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 328 | ||||||||
Foreign Currency Exchange Contracts | |||||||||
Amounts in thousands | |||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Amount | Amount | (Depreciation) | |||||||
Counterparty | Sold | Bought | Settlement Date | $ | |||||
Australia and New Zealand Banking Group | USD | 320 | EUR | 295 | 05/02/17 | 1 | |||
Australia and New Zealand Banking Group | USD | 1,211 | GBP | 938 | 05/02/17 | 3 | |||
Australia and New Zealand Banking Group | JPY | 36,989 | USD | 333 | 05/01/17 | 1 | |||
Australia and New Zealand Banking Group | MXN | 3,391 | USD | 178 | 05/03/17 | (2 | ) | ||
Bank of America | USD | 444 | AUD | 580 | 06/21/17 | (10 | ) | ||
Bank of America | USD | 653 | EUR | 610 | 06/21/17 | 13 | |||
Bank of America | USD | 89 | HKD | 694 | 05/02/17 | — | |||
Bank of America | USD | 58 | HKD | 449 | 05/04/17 | — | |||
Bank of America | USD | 313 | HKD | 2,430 | 06/21/17 | (1 | ) | ||
Bank of America | USD | 275 | JPY | 30,440 | 06/21/17 | (2 | ) | ||
Bank of America | AUD | 84 | USD | 63 | 05/02/17 | — | |||
Bank of America | AUD | 430 | USD | 332 | 06/21/17 | 10 | |||
Bank of America | AUD | 440 | USD | 336 | 06/21/17 | 7 | |||
Bank of America | AUD | 570 | USD | 428 | 06/21/17 | 2 | |||
Bank of America | AUD | 580 | USD | 437 | 06/21/17 | 3 | |||
Bank of America | AUD | 580 | USD | 436 | 06/21/17 | 2 | |||
Bank of America | AUD | 1,030 | USD | 778 | 06/21/17 | 7 | |||
Bank of America | CAD | 360 | USD | 270 | 06/21/17 | 6 | |||
Bank of America | CAD | 370 | USD | 278 | 06/21/17 | 7 | |||
Bank of America | CAD | 400 | USD | 301 | 06/21/17 | 7 | |||
Bank of America | CAD | 910 | USD | 674 | 06/21/17 | 7 | |||
Bank of America | EUR | 300 | USD | 322 | 06/21/17 | (6 | ) | ||
Bank of America | EUR | 600 | USD | 644 | 06/21/17 | (11 | ) | ||
Bank of America | EUR | 800 | USD | 859 | 06/21/17 | (14 | ) | ||
Bank of America | EUR | 1,320 | USD | 1,416 | 06/21/17 | (25 | ) | ||
Bank of America | EUR | 1,330 | USD | 1,447 | 06/21/17 | (6 | ) | ||
Bank of America | EUR | 1,360 | USD | 1,467 | 06/21/17 | (18 | ) | ||
Bank of America | GBP | 170 | USD | 209 | 06/21/17 | (11 | ) | ||
Bank of America | GBP | 430 | USD | 551 | 06/21/17 | (7 | ) | ||
Bank of America | HKD | 197 | USD | 25 | 05/02/17 | — | |||
Bank of America | HKD | 461 | USD | 59 | 05/02/17 | — | |||
Bank of America | HKD | 921 | USD | 118 | 05/04/17 | — | |||
Bank of America | HKD | 1,180 | USD | 152 | 06/21/17 | — |
See accompanying notes which are an integral part of the financial statements.
572 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of America | HKD | 1,200 | USD | 154 | 06/21/17 | — | ||
Bank of America | HKD | 1,220 | USD | 157 | 06/21/17 | — | ||
Bank of America | HKD | 2,350 | USD | 303 | 06/21/17 | 1 | ||
Bank of America | HKD | 2,430 | USD | 313 | 06/21/17 | 1 | ||
Bank of America | HKD | 3,640 | USD | 468 | 06/21/17 | — | ||
Bank of America | JPY | 14,820 | USD | 136 | 06/21/17 | 3 | ||
Bank of America | JPY | 15,380 | USD | 138 | 06/21/17 | — | ||
Bank of America | JPY | 15,540 | USD | 136 | 06/21/17 | (4 | ) | |
Bank of America | JPY | 30,200 | USD | 275 | 06/21/17 | 4 | ||
Bank of America | JPY | 33,120 | USD | 290 | 06/21/17 | (7 | ) | |
Bank of Montreal | USD | 1,131 | AUD | 1,480 | 06/21/17 | (24 | ) | |
Bank of Montreal | USD | 405 | CAD | 540 | 06/21/17 | (9 | ) | |
Bank of Montreal | USD | 1,042 | CAD | 1,389 | 06/21/17 | (23 | ) | |
Bank of Montreal | USD | 1,605 | CAD | 2,190 | 06/21/17 | 1 | ||
Bank of Montreal | USD | 858 | EUR | 790 | 06/21/17 | 5 | ||
Bank of Montreal | USD | 2,552 | EUR | 2,412 | 06/21/17 | 82 | ||
Bank of Montreal | USD | 175 | GBP | 140 | 06/21/17 | 6 | ||
Bank of Montreal | USD | 642 | GBP | 522 | 06/21/17 | 34 | ||
Bank of Montreal | USD | 558 | HKD | 4,327 | 06/21/17 | (1 | ) | |
Bank of Montreal | USD | 450 | JPY | 51,039 | 06/21/17 | 9 | ||
BNP Paribas | USD | 1,120 | AUD | 1,480 | 06/21/17 | (13 | ) | |
BNP Paribas | USD | 1,039 | CAD | 1,389 | 06/21/17 | (21 | ) | |
BNP Paribas | USD | 2,545 | EUR | 2,412 | 06/21/17 | 88 | ||
BNP Paribas | USD | 642 | GBP | 522 | 06/21/17 | 35 | ||
BNP Paribas | USD | 558 | HKD | 4,327 | 06/21/17 | (1 | ) | |
BNP Paribas | USD | 448 | JPY | 51,039 | 06/21/17 | 11 | ||
BNP Paribas | CAD | 740 | USD | 552 | 06/21/17 | 10 | ||
BNP Paribas | EUR | 410 | USD | 436 | 06/21/17 | (12 | ) | |
BNP Paribas | GBP | 290 | USD | 359 | 06/21/17 | (17 | ) | |
Brown Brothers Harriman | CAD | 190 | USD | 140 | 06/21/17 | 1 | ||
Brown Brothers Harriman | CAD | 190 | USD | 141 | 06/21/17 | 2 | ||
Brown Brothers Harriman | CAD | 360 | USD | 270 | 06/21/17 | 6 | ||
Brown Brothers Harriman | CAD | 360 | USD | 271 | 06/21/17 | 7 | ||
Brown Brothers Harriman | CAD | 370 | USD | 276 | 06/21/17 | 5 | ||
Brown Brothers Harriman | EUR | 390 | USD | 427 | 06/21/17 | 2 | ||
Brown Brothers Harriman | EUR | 410 | USD | 437 | 06/21/17 | (11 | ) | |
Brown Brothers Harriman | EUR | 810 | USD | 875 | 06/21/17 | (10 | ) | |
Brown Brothers Harriman | EUR | 1,120 | USD | 1,189 | 06/21/17 | (35 | ) | |
Brown Brothers Harriman | GBP | 140 | USD | 176 | 06/21/17 | (6 | ) | |
Brown Brothers Harriman | GBP | 220 | USD | 273 | 06/21/17 | (12 | ) | |
Brown Brothers Harriman | GBP | 220 | USD | 269 | 06/21/17 | (16 | ) | |
Brown Brothers Harriman | JPY | 14,590 | USD | 135 | 06/21/17 | 4 | ||
Citigroup | CAD | 730 | USD | 541 | 06/21/17 | 6 | ||
Citigroup | GBP | 220 | USD | 268 | 06/21/17 | (17 | ) | |
Commonwealth Bank of Australia | USD | 1,129 | AUD | 1,480 | 06/21/17 | (22 | ) | |
Commonwealth Bank of Australia | USD | 1,042 | CAD | 1,389 | 06/21/17 | (23 | ) | |
Commonwealth Bank of Australia | USD | 2,553 | EUR | 2,412 | 06/21/17 | 79 | ||
Commonwealth Bank of Australia | USD | 642 | GBP | 522 | 06/21/17 | 34 | ||
Commonwealth Bank of Australia | USD | 558 | HKD | 4,327 | 06/21/17 | (1 | ) | |
Commonwealth Bank of Australia | USD | 450 | JPY | 51,039 | 06/21/17 | 9 | ||
Credit Suisse | JPY | 135,198 | USD | 1,213 | 05/01/17 | — | ||
Deutsche Bank | USD | 21 | MXN | 388 | 05/04/17 | — | ||
JPMorgan Chase | USD | 6 | GBP | 5 | 05/03/17 | — |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 573
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
JPMorgan Chase | CHF | 53 | USD | 53 | 05/03/17 | — | ||
JPMorgan Chase | MXN | 4,762 | USD | 250 | 05/02/17 | (3 | ) | |
National Australia Bank | CAD | 1,479 | USD | 1,092 | 05/01/17 | 8 | ||
Royal Bank of Canada | USD | 438 | AUD | 580 | 06/21/17 | (4 | ) | |
Royal Bank of Canada | USD | 1,122 | AUD | 1,480 | 06/21/17 | (15 | ) | |
Royal Bank of Canada | USD | 3,418 | AUD | 4,580 | 06/21/17 | 9 | ||
Royal Bank of Canada | USD | 1,039 | CAD | 1,389 | 06/21/17 | (21 | ) | |
Royal Bank of Canada | USD | 1,358 | CAD | 1,850 | 06/21/17 | (2 | ) | |
Royal Bank of Canada | USD | 2,546 | EUR | 2,412 | 06/21/17 | 87 | ||
Royal Bank of Canada | USD | 8,742 | EUR | 8,020 | 06/21/17 | 16 | ||
Royal Bank of Canada | USD | 642 | GBP | 522 | 06/21/17 | 35 | ||
Royal Bank of Canada | USD | 1,964 | GBP | 1,520 | 06/21/17 | 7 | ||
Royal Bank of Canada | USD | 558 | HKD | 4,327 | 06/21/17 | (1 | ) | |
Royal Bank of Canada | USD | 1,891 | HKD | 14,700 | 06/21/17 | — | ||
Royal Bank of Canada | USD | 137 | JPY | 15,160 | 06/21/17 | (1 | ) | |
Royal Bank of Canada | USD | 449 | JPY | 51,039 | 06/21/17 | 10 | ||
Royal Bank of Canada | USD | 1,247 | JPY | 138,430 | 06/21/17 | (2 | ) | |
Royal Bank of Canada | AUD | 2,465 | USD | 1,841 | 05/01/17 | (5 | ) | |
Royal Bank of Canada | AUD | 570 | USD | 434 | 06/21/17 | 8 | ||
Royal Bank of Canada | AUD | 590 | USD | 452 | 06/21/17 | 10 | ||
Royal Bank of Canada | AUD | 880 | USD | 659 | 06/21/17 | 1 | ||
Royal Bank of Canada | CAD | 1,272 | USD | 933 | 05/02/17 | 1 | ||
Royal Bank of Canada | CAD | 540 | USD | 405 | 06/21/17 | 9 | ||
Royal Bank of Canada | CHF | 311 | USD | 313 | 05/02/17 | — | ||
Royal Bank of Canada | EUR | 3,093 | USD | 3,363 | 05/02/17 | (6 | ) | |
Royal Bank of Canada | EUR | 990 | USD | 1,052 | 06/21/17 | (29 | ) | |
Royal Bank of Canada | EUR | 1,180 | USD | 1,278 | 06/21/17 | (10 | ) | |
Royal Bank of Canada | GBP | 455 | USD | 588 | 05/02/17 | (2 | ) | |
Royal Bank of Canada | GBP | 290 | USD | 364 | 06/21/17 | (12 | ) | |
Royal Bank of Canada | HKD | 5,787 | USD | 744 | 05/02/17 | — | ||
Royal Bank of Canada | HKD | 1,200 | USD | 155 | 06/21/17 | — | ||
Royal Bank of Canada | HKD | 1,220 | USD | 157 | 06/21/17 | — | ||
Royal Bank of Canada | HKD | 3,660 | USD | 472 | 06/21/17 | 1 | ||
Royal Bank of Canada | JPY | 67,928 | USD | 611 | 05/02/17 | 1 | ||
Royal Bank of Canada | JPY | 30,080 | USD | 272 | 06/21/17 | 1 | ||
Royal Bank of Canada | JPY | 30,290 | USD | 274 | 06/21/17 | 2 | ||
Royal Bank of Canada | JPY | 30,950 | USD | 274 | 06/21/17 | (4 | ) | |
Royal Bank of Canada | MXN | 2,411 | USD | 127 | 05/03/17 | (1 | ) | |
Royal Bank of Canada | NOK | 180 | USD | 21 | 05/02/17 | — | ||
Royal Bank of Canada | NZD | 737 | USD | 507 | 05/01/17 | — | ||
Royal Bank of Canada | SGD | 580 | USD | 415 | 05/03/17 | — | ||
Standard Chartered | USD | 1,130 | AUD | 1,480 | 06/21/17 | (23 | ) | |
Standard Chartered | USD | 1,042 | CAD | 1,389 | 06/21/17 | (23 | ) | |
Standard Chartered | USD | 2,552 | EUR | 2,412 | 06/21/17 | 81 | ||
Standard Chartered | USD | 642 | GBP | 522 | 06/21/17 | 35 | ||
Standard Chartered | USD | 558 | HKD | 4,327 | 06/21/17 | (1 | ) | |
Standard Chartered | USD | 450 | JPY | 51,039 | 06/21/17 | 9 | ||
State Street | USD | 283 | CAD | 387 | 05/03/17 | — | ||
State Street | AUD | 440 | USD | 339 | 06/21/17 | 9 | ||
State Street | BRL | 41 | USD | 13 | 05/02/17 | — | ||
State Street | BRL | 45 | USD | 14 | 05/02/17 | — | ||
State Street | BRL | 365 | USD | 114 | 05/03/17 | — | ||
State Street | CAD | 79 | USD | 58 | 05/01/17 | — |
See accompanying notes which are an integral part of the financial statements.
574 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
State Street | CHF | 129 | USD | 130 | 05/02/17 | — | |
State Street | EUR | 7 | USD | 8 | 05/02/17 | — | |
State Street | EUR | 120 | USD | 131 | 05/02/17 | — | |
State Street | EUR | 1,070 | USD | 1,167 | 05/03/17 | 1 | |
State Street | JPY | 15,420 | USD | 138 | 06/21/17 | — | |
State Street | SGD | 94 | USD | 67 | 05/02/17 | — | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 299 |
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Australia | $ | — | $ | 91,122 | $ | — | $ | — | $ | 91,122 | 8.5 | ||||||
Austria | — | 2,327 | — | — | 2,327 | 0.2 | |||||||||||
Belgium | — | 286 | — | — | 286 | —* | |||||||||||
Bermuda | 512 | 327 | — | — | 839 | 0.1 | |||||||||||
Brazil | 10,784 | — | — | — | 10,784 | 1.0 | |||||||||||
Canada | 100,328 | — | — | — | 100,328 | 9.3 | |||||||||||
Chile | 2,442 | — | — | — | 2,442 | 0.2 | |||||||||||
China | — | 34,805 | — | — | 34,805 | 3.2 | |||||||||||
France | — | 51,616 | — | — | 51,616 | 4.8 | |||||||||||
Germany | — | 15,809 | — | — | 15,809 | 1.5 | |||||||||||
Hong Kong | — | 9,759 | — | — | 9,759 | 0.9 | |||||||||||
India | — | 2,995 | — | — | 2,995 | 0.3 | |||||||||||
Indonesia | 978 | 472 | — | — | 1,450 | 0.1 | |||||||||||
Italy | — | 53,442 | — | — | 53,442 | 5.0 | |||||||||||
Japan | — | 34,101 | — | — | 34,101 | 3.2 | |||||||||||
Malaysia | — | 59 | — | — | 59 | —* | |||||||||||
Mexico | 20,096 | — | — | — | 20,096 | 1.9 | |||||||||||
Netherlands | — | 8,107 | — | — | 8,107 | 0.8 | |||||||||||
New Zealand | — | 12,449 | — | — | 12,449 | 1.2 | |||||||||||
Norway | — | 362 | — | — | 362 | —* | |||||||||||
Philippines | — | 658 | — | — | 658 | 0.1 | |||||||||||
Singapore | — | 7,272 | — | — | 7,272 | 0.7 | |||||||||||
Spain | — | 91,397 | — | — | 91,397 | 8.5 | |||||||||||
Switzerland | — | 18,826 | — | — | 18,826 | 1.8 | |||||||||||
United Kingdom | 4,102 | 57,601 | — | — | 61,703 | 5.7 | |||||||||||
United States | 386,335 | — | — | — | 386,335 | 36.0 | |||||||||||
Investments in Other Funds | — | 1,756 | — | — | 1,756 | 0.1 | |||||||||||
Short-Term Investments | — | — | — | 27,922 | 27,922 | 2.6 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 575
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Other Securities | — | — | — | 54,455 | 54,455 | 5.1 | ||||||||||||
Total Investments | 525,577 | 495,548 | — | 82,377 | 1,103,502 | 102.8 | ||||||||||||
Other Assets and Liabilities, Net | (2.8 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 362 | — | — | — | 362 | —* | ||||||||||||
Foreign Currency Exchange Contracts | 19 | 843 | — | — | 862 | 0.1 | * | |||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (34 | ) | — | — | — | (34 | ) | (—)* | ||||||||||
Foreign Currency Exchange Contracts | (22 | ) | (541 | ) | — | — | (563 | ) | (0.1 | ) | ||||||||
Total Other Financial Instruments* | $ | 325 | $ | 302 | $ | — | $ | — | $ | 627 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Amounts in thousands | |||
Fair Value | |||
Infrastructure Subindustry Exposure | $ | ||
Air Freight & Logistics | 164 | ||
Airport Services | 120,076 | ||
Construction & engineering | 12,574 | ||
Diversified | 4,534 | ||
Electric Utilities | 204,004 | ||
Environmental & Facilities Services | 13,989 | ||
Gas Utilities | 33,595 | ||
Healthcare | 1,494 | ||
Highways & Railtracks | 176,316 | ||
Integrated Telecommunication Services | 8,762 | ||
Marine Ports & Services | 31,061 | ||
Multi-Utilities | 116,080 | ||
Oil & Gas Refining & Marketing | 2,365 | ||
Oil & Gas Storage & Transportation | 203,728 | ||
Railroads | 33,489 | ||
Renewable Electricity | 1,726 |
See accompanying notes which are an integral part of the financial statements.
576 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Specialized REITs | 35,525 | ||
Trucking | 1,691 | ||
Water Utilities | 19,952 | ||
Short-Term Investments | 27,922 | ||
Other Securities | 54,455 | ||
Total Investments | 1,103,502 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 577
Russell Investment Company
Global Infrastructure Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | |||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 862 | |||
Variation margin on futures contracts* | 362 | — | |||||
Total | $ | 362 | $ | 862 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||
Variation margin on futures contracts* | $ | 34 | $ | — | |||
Unrealized depreciation on foreign currency exchange contracts | — | 563 | |||||
Total | $ | 34 | $ | 563 | |||
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | |||||||
Futures contracts | $ | 4,690 | $ | — | |||
Foreign currency-related transactions** | — | (836 | ) | ||||
Total | $ | 4,690 | $ | (836 | ) | ||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||||
Futures contracts | $ | (251 | ) | $ | — | ||
Foreign currency-related transactions*** | — | 685 | |||||
Total | $ | (251 | ) | $ | 685 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
578 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||
Gross | Net Amounts | ||||||||||||
Amounts | of Assets | ||||||||||||
Gross | Offset in the | Presented in | |||||||||||
Amounts of | Statement of | the Statement | |||||||||||
Recognized | Assets and | of Assets and | |||||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||||||
Securities on Loan* | Investments, at fair value | $ | 52,545 | $ | — | $ | 52,545 | ||||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 862 | — | 862 | |||||||||
Futures Contracts | Variation margin on futures contracts | 68 | — | 68 | |||||||||
Total Financial and Derivative Assets | 53,475 | — | 53,475 | ||||||||||
Financial and Derivative Assets not subject to a netting agreement | (79 | ) | — | (79 | ) | ||||||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 53,396 | $ | — | $ | 53,396 | |||||||
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||||
Gross Amounts Not Offset in | |||||||||||||
the Statement of Assets and | |||||||||||||
Liabilities | |||||||||||||
Net Amounts | |||||||||||||
of Assets | |||||||||||||
Presented in | |||||||||||||
the Statement | Financial and | ||||||||||||
of Assets and | Derivative | Collateral | |||||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||||
Bank of America | $ | 81 | $ | 81 | $ | — | $ | — | |||||
Bank of Montreal | 137 | 57 | — | 80 | |||||||||
BNP Paribas | 144 | 64 | — | 80 | |||||||||
Brown Brothers Harriman | 25 | 25 | — | — | |||||||||
Citigroup | 8,083 | 6 | 8,077 | — | |||||||||
Commonwealth Bank of Australia | 123 | 47 | — | 76 | |||||||||
Credit Suisse | 299 | — | 299 | — | |||||||||
Deutsche Bank | 765 | — | 765 | — | |||||||||
Goldman Sachs | 38,693 | — | 38,693 | — | |||||||||
HSBC | 1,537 | — | 1,537 | — | |||||||||
JPMorgan Chase | 601 | — | 601 | — | |||||||||
Merrill Lynch | 2,575 | — | 2,575 | — | |||||||||
Royal Bank of Canada | 197 | 102 | — | 95 | |||||||||
Standard Chartered | 126 | 48 | — | 78 | |||||||||
State Street | 10 | — | — | 10 | |||||||||
Total | $ | 53,396 | $ | 430 | $ | 52,547 | $ | 419 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 579
Russell Investment Company
Global Infrastructure Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 135 | $ | — $ | 135 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 563 | — | 563 | |||||
Total Financial and Derivative Liabilities | 698 | — | 698 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (153 | ) | — | (153 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 545 | $ | — $ | 545 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 122 | $ | 81 | $ | — | $ 41 | ||
Bank of Montreal | 57 | 57 | — | — | |||||
BNP Paribas | 64 | 64 | — | — | |||||
Brown Brothers Harriman | 88 | 25 | — | 63 | |||||
Citigroup | 17 | 6 | — | 11 | |||||
Commonwealth Bank of Australia | 47 | 47 | — | — | |||||
Royal Bank of Canada | 102 | 102 | — | — | |||||
Standard Chartered | 48 | 48 | — | — | |||||
Total | $ | 545 | $ | 430 | $ | — | $ 115 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
580 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 936,010 |
Investments, at fair value(*)(>) | 1,103,502 | |
Cash (restricted)(a) | 2,491 | |
Foreign currency holdings(^) | 1,701 | |
Unrealized appreciation on foreign currency exchange contracts | 862 | |
Receivables: | ||
Dividends and interest | 1,395 | |
Dividends from affiliated funds | 3 | |
Investments sold | 31,715 | |
Fund shares sold | 1,145 | |
Foreign capital gains taxes recoverable | 466 | |
Variation margin on futures contracts | 68 | |
Prepaid expenses | 10 | |
Total assets | 1,143,358 | |
Liabilities | ||
Payables: | ||
Due to custodian | 1,099 | |
Investments purchased | 11,697 | |
Fund shares redeemed | 859 | |
Accrued fees to affiliates | 984 | |
Other accrued expenses | 447 | |
Variation margin on futures contracts | 135 | |
Unrealized depreciation on foreign currency exchange contracts | 563 | |
Payable upon return of securities loaned | 54,455 | |
Total liabilities | 70,239 | |
Net Assets | $ | 1,073,119 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 581
Russell Investment Company
Global Infrastructure Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 3,185 | |
Accumulated net realized gain (loss) | (30,918 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 167,492 | ||
Futures contracts | 328 | ||
Foreign currency-related transactions | 264 | ||
Shares of beneficial interest | 903 | ||
Additional paid-in capital | 931,865 | ||
Net Assets | $ | 1,073,119 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 11.87 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 12.59 | |
Class A — Net assets | $ | 8,791,384 | |
Class A — Shares outstanding ($.01 par value) | 740,632 | ||
Net asset value per share: Class C(#) | $ | 11.79 | |
Class C — Net assets | $ | 6,847,686 | |
Class C — Shares outstanding ($.01 par value) | 580,830 | ||
Net asset value per share: Class E(#) | $ | 11.87 | |
Class E — Net assets | $ | 1,139,503 | |
Class E — Shares outstanding ($.01 par value) | 95,994 | ||
Net asset value per share: Class S(#) | $ | 11.89 | |
Class S — Net assets | $ | 866,049,433 | |
Class S — Shares outstanding ($.01 par value) | 72,853,180 | ||
Net asset value per share: Class T(#) | $ | 11.89 | |
Class T — Net assets | $ | 1,652,910 | |
Class T — Shares outstanding ($.01 par value) | 139,066 | ||
Net asset value per share: Class Y(#) | $ | 11.89 | |
Class Y — Net assets | $ | 188,638,041 | |
Class Y — Shares outstanding ($.01 par value) | 15,864,484 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 1,703 | |
(*) Securities on loan included in investments | $ | 52,545 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 82,377 | |
(a) Cash Collateral for Futures | $ | 2,491 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
582 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 15,413 | |
Dividends from affiliated funds | 167 | ||
Securities lending income (net) | 166 | ||
Securities lending income from affiliated funds (net) | 83 | ||
Less foreign taxes withheld | (833 | ) | |
Total investment income | 14,996 | ||
Expenses | |||
Advisory fees | 6,406 | ||
Administrative fees | 248 | ||
Custodian fees | 260 | ||
Distribution fees - Class A | 10 | ||
Distribution fees - Class C | 24 | ||
Transfer agent fees - Class A | 8 | ||
Transfer agent fees - Class C | 7 | ||
Transfer agent fees - Class E | 8 | ||
Transfer agent fees - Class S | 795 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 5 | ||
Professional fees | 49 | ||
Registration fees | 52 | ||
Shareholder servicing fees - Class C | 8 | ||
Shareholder servicing fees - Class E | 10 | ||
Trustees’ fees | 20 | ||
Printing fees | 113 | ||
Miscellaneous | 10 | ||
Expenses before reductions | 8,033 | ||
Expense reductions | (1,876 | ) | |
Net expenses | 6,157 | ||
Net investment income (loss) | 8,839 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 14,114 | ||
Futures contracts | 4,690 | ||
Foreign currency-related transactions | (687 | ) | |
Net realized gain (loss) | 18,117 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 62,525 | ||
Futures contracts | (251 | ) | |
Foreign currency-related transactions | 685 | ||
Net change in unrealized appreciation (depreciation) | 62,959 | ||
Net realized and unrealized gain (loss) | 81,076 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 89,915 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 583
Russell Investment Company
Global Infrastructure Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 8,839 | $ | 29,812 | ||
Net realized gain (loss) | 18,117 | 20,819 | ||||
Net change in unrealized appreciation (depreciation) | 62,959 | 20,055 | ||||
Net increase (decrease) in net assets from operations | 89,915 | 70,686 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (43 | ) | (162 | ) | ||
Class C | (25 | ) | (101 | ) | ||
Class E | (99 | ) | (466 | ) | ||
Class S | (5,413 | ) | (21,288 | ) | ||
Class T | (—)** | — | ||||
Class Y | (1,659 | ) | (7,243 | ) | ||
From net realized gain | ||||||
Class A | (285 | ) | (230 | ) | ||
Class C | (241 | ) | (220 | ) | ||
Class E | (655 | ) | (719 | ) | ||
Class S | (29,319 | ) | (28,742 | ) | ||
Class Y | (8,151 | ) | (10,311 | ) | ||
Net decrease in net assets from distributions | (45,890 | ) | (69,482 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (5,060 | ) | (376,259 | ) | ||
Total Net Increase (Decrease) in Net Assets | 38,965 | (375,055 | ) | |||
Net Assets | ||||||
Beginning of period | 1,034,154 | 1,409,209 | ||||
End of period | $ | 1,073,119 | $ | 1,034,154 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 3,185 | $ | 1,585 | ||
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
584 Global Infrastructure Fund
Russell Investment Company
Global Infrastructure Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 122 | $ | 1,359 | 150 | $ | 1,671 | ||||||
Proceeds from reinvestment of distributions | 30 | 321 | 36 | 385 | ||||||||
Payments for shares redeemed | (77 | ) | (861 | ) | (266 | ) | (2,942 | ) | ||||
Net increase (decrease) | 75 | 819 | (80 | ) | (886 | ) | ||||||
Class C | ||||||||||||
Proceeds from shares sold | 118 | 1,294 | 69 | 768 | ||||||||
Proceeds from reinvestment of distributions | 25 | 264 | 30 | 319 | ||||||||
Payments for shares redeemed | (120 | ) | (1,333 | ) | (219 | ) | (2,427 | ) | ||||
Net increase (decrease) | 23 | 225 | (120 | ) | (1,340 | ) | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 54 | 593 | 142 | 1,587 | ||||||||
Proceeds from reinvestment of distributions | 67 | 714 | 105 | 1,116 | ||||||||
Payments for shares redeemed | (1,567 | ) | (17,165 | ) | (865 | ) | (9,946 | ) | ||||
Net increase (decrease) | (1,446 | ) | (15,858 | ) | (618 | ) | (7,243 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 10,836 | 120,508 | 14,026 | 155,438 | ||||||||
Proceeds from reinvestment of distributions | 3,222 | 34,519 | 4,640 | 49,380 | ||||||||
Payments for shares redeemed | (9,730 | ) | (108,564 | ) | (39,231 | ) | (441,729 | ) | ||||
Net increase (decrease) | 4,328 | 46,463 | (20,565 | ) | (236,911 | ) | ||||||
Class T(1) | ||||||||||||
Proceeds from shares sold | 139 | 1,635 | — | — | ||||||||
Payments for shares redeemed | — | (5 | ) | — | — | |||||||
Net increase (decrease) | 139 | 1,630 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 309 | 3,382 | 1,726 | 18,969 | ||||||||
Proceeds from reinvestment of distributions | 915 | 9,809 | 1,655 | 17,553 | ||||||||
Payments for shares redeemed | (4,529 | ) | (51,530 | ) | (14,690 | ) | (166,401 | ) | ||||
Net increase (decrease) | (3,305 | ) | (38,339 | ) | (11,309 | ) | (129,879 | ) | ||||
Total increase (decrease) | (186 | ) | $ | (5,060 | ) | (32,692 | ) | $ | (376,259 | ) | ||
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 585
Russell Investment Company
Global Infrastructure Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 11.42 | .08 | .86 | .94 | (.06 | ) | (.43 | ) | |||||||||
October 31, 2016 | 11.43 | .24 | .33 | .57 | (.24 | ) | (.34 | ) | |||||||||
October 31, 2015 | 12.93 | .20 | (.62 | ) | (.42 | ) | (.21 | ) | (.87 | ) | |||||||
October 31, 2014 | 12.32 | .23 | 1.27 | 1.50 | (.25 | ) | (.64 | ) | |||||||||
October 31, 2013 | 11.18 | .23 | 1.41 | 1.64 | (.24 | ) | (.26 | ) | |||||||||
October 31, 2012 | 10.11 | .25 | 1.07 | 1.32 | (.25 | ) | —(f) | ||||||||||
Class C | |||||||||||||||||
April 30, 2017* | 11.36 | .04 | .86 | .90 | (.04 | ) | (.43 | ) | |||||||||
October 31, 2016 | 11.38 | .15 | .33 | .48 | (.16 | ) | (.34 | ) | |||||||||
October 31, 2015 | 12.89 | .11 | (.62 | ) | (.51 | ) | (.13 | ) | (.87 | ) | |||||||
October 31, 2014 | 12.30 | .13 | 1.26 | 1.39 | (.16 | ) | (.64 | ) | |||||||||
October 31, 2013 | 11.16 | .15 | 1.41 | 1.56 | (.16 | ) | (.26 | ) | |||||||||
October 31, 2012 | 10.09 | .17 | 1.06 | 1.23 | (.16 | ) | —(f) | ||||||||||
Class E | |||||||||||||||||
April 30, 2017* | 11.42 | .07 | .87 | .94 | (.06 | ) | (.43 | ) | |||||||||
October 31, 2016 | 11.43 | .24 | .33 | .57 | (.24 | ) | (.34 | ) | |||||||||
October 31, 2015 | 12.93 | .20 | (.62 | ) | (.42 | ) | (.21 | ) | (.87 | ) | |||||||
October 31, 2014 | 12.32 | .23 | 1.27 | 1.50 | (.25 | ) | (.64 | ) | |||||||||
October 31, 2013 | 11.18 | .23 | 1.41 | 1.64 | (.24 | ) | (.26 | ) | |||||||||
October 31, 2012 | 10.12 | .24 | 1.07 | 1.31 | (.25 | ) | —(f) | ||||||||||
Class S | |||||||||||||||||
April 30, 2017* | 11.43 | .09 | .87 | .96 | (.07 | ) | (.43 | ) | |||||||||
October 31, 2016 | 11.44 | .27 | .33 | .60 | (.27 | ) | (.34 | ) | |||||||||
October 31, 2015 | 12.94 | .23 | (.62 | ) | (.39 | ) | (.24 | ) | (.87 | ) | |||||||
October 31, 2014 | 12.33 | .26 | 1.27 | 1.53 | (.28 | ) | (.64 | ) | |||||||||
October 31, 2013 | 11.19 | .26 | 1.41 | 1.67 | (.27 | ) | (.26 | ) | |||||||||
October 31, 2012 | 10.13 | .27 | 1.07 | 1.34 | (.28 | ) | —(f) | ||||||||||
Class T | |||||||||||||||||
April 30, 2017(10) | 11.40 | .03 | .47 | .50 | (.01 | ) | — | ||||||||||
Class Y | |||||||||||||||||
April 30, 2017* | 11.43 | .10 | .87 | .97 | (.08 | ) | (.43 | ) | |||||||||
October 31, 2016 | 11.45 | .29 | .32 | .61 | (.29 | ) | (.34 | ) | |||||||||
October 31, 2015 | 12.95 | .25 | (.62 | ) | (.37 | ) | (.26 | ) | (.87 | ) | |||||||
October 31, 2014 | 12.34 | .28 | 1.28 | 1.56 | (.31 | ) | (.64 | ) | |||||||||
October 31, 2013 | 11.19 | .27 | 1.43 | 1.70 | (.29 | ) | (.26 | ) | |||||||||
October 31, 2012 | 10.13 | .29 | 1.07 | 1.36 | (.30 | ) | —(f) | ||||||||||
See accompanying notes which are an integral part of the financial statements.
586 Global Infrastructure Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b)(k) | |||||||||
(.49 | ) | 11.87 | 8.70 | 8,791 | 1.85 | 1.48 | 1.45 | 41 | |||||||||
(.58 | ) | 11.42 | 5.43 | 7,595 | 1.83 | 1.47 | 2.14 | 102 | |||||||||
(1.08 | ) | 11.43 | (3.49 | ) | 8,522 | 1.82 | 1.47 | 1.70 | 86 | ||||||||
(.89 | ) | 12.93 | 12.95 | 9,903 | 1.81 | 1.47 | 1.83 | 119 | |||||||||
(.50 | ) | 12.32 | 15.24 | 7,556 | 1.82 | 1.49 | 2.02 | 127 | |||||||||
(.25 | ) | 11.18 | 13.07 | 4,819 | 1.83 | 1.47 | 2.35 | 125 | |||||||||
(.47 | ) | 11.79 | 8.35 | 6,848 | 2.60 | 2.23 | .70 | 41 | |||||||||
(.50 | ) | 11.36 | 4.65 | 6,343 | 2.59 | 2.22 | 1.38 | 102 | |||||||||
(1.00 | ) | 11.38 | (4.23 | ) | 7,718 | 2.57 | 2.22 | .96 | 86 | ||||||||
(.80 | ) | 12.89 | 12.00 | 9,145 | 2.56 | 2.22 | 1.07 | 119 | |||||||||
(.42 | ) | 12.30 | 14.41 | 5,900 | 2.58 | 2.24 | 1.26 | 127 | |||||||||
(.16 | ) | 11.16 | 12.32 | 4,514 | 2.58 | 2.22 | 1.62 | 125 | |||||||||
(.49 | ) | 11.87 | 8.70 | 1,140 | 1.84 | 1.47 | 1.34 | 41 | |||||||||
(.58 | ) | 11.42 | 5.42 | 17,601 | 1.84 | 1.47 | 2.16 | 102 | |||||||||
(1.08 | ) | 11.43 | (3.50 | ) | 24,683 | 1.82 | 1.47 | 1.67 | 86 | ||||||||
(.89 | ) | 12.93 | 12.92 | 28,885 | 1.81 | 1.47 | 1.87 | 119 | |||||||||
(.50 | ) | 12.32 | 15.23 | 21,848 | 1.83 | 1.49 | 1.99 | 127 | |||||||||
(.25 | ) | 11.18 | 13.08 | 18,444 | 1.83 | 1.47 | 2.32 | 125 | |||||||||
(.50 | ) | 11.89 | 8.91 | 866,049 | 1.60 | 1.23 | 1.70 | 41 | |||||||||
(.61 | ) | 11.43 | 5.69 | 783,412 | 1.59 | 1.22 | 2.41 | 102 | |||||||||
(1.11 | ) | 11.44 | (3.25 | ) | 1,019,451 | 1.57 | 1.22 | 1.95 | 86 | ||||||||
(.92 | ) | 12.94 | 13.21 | 1,243,852 | 1.56 | 1.22 | 2.06 | 119 | |||||||||
(.53 | ) | 12.33 | 15.59 | 755,311 | 1.57 | 1.24 | 2.24 | 127 | |||||||||
(.28 | ) | 11.19 | 13.38 | 551,759 | 1.58 | 1.22 | 2.60 | 125 | |||||||||
(.01 | ) | 11.89 | 4.40 | 1,653 | 1.62 | 1.13 | 2.46 | 41 | |||||||||
(.51 | ) | 11.89 | 9.01 | 188,638 | 1.40 | 1.05 | 1.86 | 41 | |||||||||
(.63 | ) | 11.43 | 5.78 | 219,203 | 1.39 | 1.04 | 2.57 | 102 | |||||||||
(1.13 | ) | 11.45 | (3.07 | ) | 348,835 | 1.37 | 1.04 | 2.13 | 86 | ||||||||
(.95 | ) | 12.95 | 13.39 | 480,724 | 1.36 | 1.04 | 2.28 | 119 | |||||||||
(.55 | ) | 12.34 | 15.79 | 427,919 | 1.37 | 1.06 | 2.33 | 127 | |||||||||
(.30 | ) | 11.19 | 13.58 | 308,901 | 1.39 | 1.06 | 2.79 | 125 |
See accompanying notes which are an integral part of the financial statements.
Global Infrastructure Fund 587
Russell Investment Company
Global Infrastructure Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 795,854 |
Administration fees | 42,669 | |
Distribution fees | 5,965 | |
Shareholder servicing fees | 1,630 | |
Transfer agent fees | 130,247 | |
Trustee fees | 8,068 | |
$ | 984,433 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Collateral Fund | $ | 37,089 | $ | 204,120 | $ | 186,754 | $ | — | $ — | $ | 54,455 | $ | 83 | $ | — | ||
U.S. Cash Management Fund | 32,929 | 229,231 | 234,238 | — | — | 27,922 | 167 | — | |||||||||
$ | 70,018 | $ | 433,351 | $ | 420,992 | $ | — | $ — | $ | 82,377 | $ | 250 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 981,298,726 | |||
Unrealized Appreciation | $ | 128,708,062 | |||
Unrealized Depreciation | (6,505,249 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 122,202,813 |
See accompanying notes which are an integral part of the financial statements.
588 Global Infrastructure Fund
Russell Investment Company
Global Real Estate Securities Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,032.70 | $ | 1,017.90 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 7.01 | $ | 6.95 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.39% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,028.70 | $ | 1,014.18 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 10.76 | $ | 10.69 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 2.14% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,032.70 | $ | 1,017.90 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 7.01 | $ | 6.95 | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 1.39% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
Global Real Estate Securities Fund 589
Russell Investment Company
Global Real Estate Securities Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | Hypothetical | |||||||||||
Performance (5% | Performance (5% | |||||||||||
Actual | return before | Actual | return before | |||||||||
Class R6 | Performance | expenses) | Class Y | Performance | expenses) | |||||||
Beginning Account Value | Beginning Account Value | |||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |||
Ending Account Value | Ending Account Value | |||||||||||
April 30, 2017 | $ | 1,034.10 | $ | 1,019.98 | April 30, 2017 | $ | 1,034.90 | $ | 1,020.13 | |||
Expenses Paid During Period* | $ | 4.89 | $ | 4.86 | Expenses Paid During Period* | $ | 4.74 | $ | 4.71 | |||
* Expenses are equal to the Fund's annualized expense ratio of 0.97% | * Expenses are equal to the Fund's annualized expense ratio of 0.94% | |||||||||||
(representing the six month period annualized), multiplied by the average | (representing the six month period annualized), multiplied by the average | |||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||||||
year period). May reflect amounts waived and/or reimbursed. Without any | year period). | |||||||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class S | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,033.90 | $ | 1,019.14 | ||||||||
Expenses Paid During Period* | $ | 5.75 | $ | 5.71 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.14% | ||||||||||||
(representing the six month period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||||||||
year period). | ||||||||||||
Hypothetical | ||||||||||||
Performance (5% | ||||||||||||
Actual | return before | |||||||||||
Class T | Performance | expenses) | ||||||||||
Beginning Account Value | ||||||||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | ||||||||||||
April 30, 2017 | $ | 1,018.80 | $ | 1,019.64 | ||||||||
Expenses Paid During Period* | $ | 1.29 | $ | 5.21 | ||||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.04% | ||||||||||||
(representing the 45-day period annualized), multiplied by the average | ||||||||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||||||||
1.04% (representing the six-month period annualized), multiplied by the | ||||||||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||||||||
on-half year period). |
590 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Common Stocks - 97.1% | Germany - 3.3% | ||||||||||
Australia - 5.6% | ADO Properties SA(Þ) | 67,082 | 2,454 | ||||||||
BGP Holdings PLC(Å)(Æ) | 4,619,419 | 67 | alstria office REIT-AG(ö) | 440,930 | 5,832 | ||||||
Dexus Property Group(Æ)(ö) | 1,592,175 | 12,159 | Deutsche Wohnen AG | 470,641 | 16,092 | ||||||
Goodman Group(ö) | 2,157,803 | 13,081 | LEG Immobilien AG(Æ) | 51,964 | 4,464 | ||||||
GPT Group (The)(ö) | 1,701,660 | 6,675 | TLG Immobilien AG | 266,634 | 5,395 | ||||||
Investa Office Fund(ö) | 530,376 | 1,885 | Vonovia SE | 121,384 | 4,394 | ||||||
Mirvac Group(ö) | 3,899,873 | 6,626 | 38,631 | ||||||||
Scentre Group(ö) | 3,740,745 | 12,068 | |||||||||
Stockland(ö) | 623,563 | 2,257 | Hong Kong - 8.2% | ||||||||
Vicinity Centres(ö) | 774,047 | 1,668 | Champion REIT(Æ)(ö) | 443,000 | 288 | ||||||
Viva Energy REIT(ö) | 842,018 | 1,519 | Cheung Kong Property Holdings, Ltd. | 2,529,434 | 18,128 | ||||||
Westfield Corp.(ö) | 1,187,531 | 8,073 | Hang Lung Properties, Ltd. - ADR | 4,166,000 | 10,912 | ||||||
66,078 | Henderson Land Development Co., Ltd. | 296,943 | 1,880 | ||||||||
Hongkong Land Holdings, Ltd. | 1,022,295 | 7,899 | |||||||||
Austria - 0.7% | Hopewell Holdings, Ltd. | 389,900 | 1,487 | ||||||||
Atrium European Real Estate, Ltd.(Æ) | 82,627 | 348 | Hysan Development Co., Ltd. | 760,000 | 3,588 | ||||||
Buwog AG(Æ) | 275,713 | 7,445 | Link Real Estate Investment Trust(ö) | 1,872,786 | 13,460 | ||||||
7,793 | New World Development Co., Ltd. | 2,131,551 | 2,649 | ||||||||
Sino Land Co., Ltd. | 451,019 | 764 | |||||||||
Belgium - 0.1% | Sun Hung Kai Properties, Ltd. | 1,549,982 | 23,219 | ||||||||
Aedifica(ö) | 18,176 | 1,429 | Swire Properties, Ltd. | 2,505,800 | 8,408 | ||||||
Wharf Holdings, Ltd. (The) | 362,000 | 3,089 | |||||||||
Canada - 1.9% | 95,771 | ||||||||||
Allied Properties Real Estate Investment | |||||||||||
Trust(ö) | 175,572 | 4,712 | Ireland - 0.4% | ||||||||
Boardwalk Real Estate Investment | Green REIT PLC(ö) | 815,506 | 1,213 | ||||||||
Trust(Ñ)(ö) | 32,015 | 1,080 | Hibernia REIT PLC(ö) | 2,316,865 | 3,217 | ||||||
Brookfield Canada Office Properties(ö) | 54,818 | 1,306 | 4,430 | ||||||||
Canadian Apartment Properties(ö) | 126,477 | 3,139 | |||||||||
Chartwell Retirement Residences | 287,166 | 3,270 | Italy - 0.0% | ||||||||
Crombie Real Estate Investment Trust(ö) | 58,534 | 621 | Beni Stabili SpA SIIQ(ö) | 156,048 | 99 | ||||||
First Capital Realty, Inc. Class A | 103,782 | 1,508 | |||||||||
Granite Real Estate Investment Trust(ö) | 21,893 | 785 | Japan - 10.4% | ||||||||
H&R Real Estate Investment Trust(ö) | 68,857 | 1,168 | Activia Properties, Inc.(ö) | 1,380 | 6,574 | ||||||
Pure Industrial Real Estate Trust(ö) | 150,439 | 720 | Advance Residence Investment Corp.(ö) | 1,114 | 2,935 | ||||||
RioCan Real Estate Investment Trust(ö) | 144,631 | 2,747 | Daiwa Office Investment Corp.(ö) | 76 | 371 | ||||||
Smart Real Estate Investment Trust(ö) | 28,275 | 670 | Frontier Real Estate Investment Corp.(ö) | 414 | 1,807 | ||||||
21,726 | Global One Real Estate Investment(Ñ)(ö) | 536 | 1,846 | ||||||||
GLP J-Reit(ö) | 843 | 951 | |||||||||
China - 0.0% | Hulic Co., Ltd. | 79,235 | 747 | ||||||||
China Overseas Land & Investment, Ltd. | 150,000 | 435 | Hulic Reit, Inc.(ö) | 1,038 | 1,667 | ||||||
China Resources Land, Ltd. | 18,000 | 50 | Invesco Office J-Reit Inc(ö) | 851 | 749 | ||||||
485 | Invincible Investment Corp.(ö) | 3,640 | 1,394 | ||||||||
Japan Hotel REIT Investment Corp.(ö) | 693 | 472 | |||||||||
Finland - 0.1% | Japan Logistics Fund, Inc.(ö) | 1,160 | 2,476 | ||||||||
Citycon OYJ | 384,906 | 947 | Japan Real Estate Investment Corp.(ö) | 961 | 5,060 | ||||||
Sponda OYJ | 13,116 | 58 | Japan Rental Housing Investments, Inc. | ||||||||
1,005 | (ö) | 34 | 24 | ||||||||
Japan Retail Fund Investment Corp.(ö) | 3,973 | 7,765 | |||||||||
France - 3.4% | Kenedix Office Investment Corp. Class | ||||||||||
Fonciere Des Regions(ö) | 10,472 | 934 | A(ö) | 556 | 3,152 | ||||||
Gecina SA(ö) | 70,299 | 10,000 | Mitsubishi Estate Co., Ltd. | 925,000 | 17,681 | ||||||
Icad, Inc.(ö) | 26,369 | 1,959 | Mitsui Fudosan Co., Ltd. | 1,421,650 | 31,251 | ||||||
Klepierre - GDR(Ñ)(ö) | 487,028 | 19,124 | Mori Hills REIT Investment Corp. Class | ||||||||
Mercialys SA(ö) | 35,516 | 692 | A(ö) | 2,307 | 2,997 | ||||||
Unibail-Rodamco SE(ö) | 29,756 | 7,307 | MORI TRUST Hotel Reit, Inc.(ö) | 277 | 377 | ||||||
40,016 | Mori Trust Sogo Reit, Inc.(ö) | 2,128 | 3,324 | ||||||||
Nippon Building Fund, Inc.(ö) | 893 | 4,750 |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 591
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Nippon Prologis REIT, Inc.(ö) | 433 | 915 | Hufvudstaden AB Class A | 214,694 | 3,365 | |||||
Nomura Real Estate Master Fund, Inc.(ö) | 1,531 | 2,207 | Wihlborgs Fastigheter AB(Ñ) | 6,678 | 130 | |||||
NTT Urban Development Corp. | 382,200 | 3,447 | 9,681 | |||||||
Orix JREIT, Inc.(ö) | 543 | 861 | ||||||||
Sekisui House Reit, Inc.(ö) | 40 | 51 | Switzerland - 0.4% | |||||||
Sumitomo Realty & Development Co., | PSP Swiss Property AG | 47,848 | 4,287 | |||||||
Ltd. | 312,000 | 8,418 | Swiss Prime Site AG Class A(Æ) | 8,414 | 730 | |||||
Tokyo Tatemono Co., Ltd. | 487,500 | 6,662 | 5,017 | |||||||
United Urban Investment Corp.(ö) | 1,062 | 1,605 | ||||||||
122,536 | United Kingdom - 5.9% | |||||||||
Assura PLC(ö) | 3,127,766 | 2,480 | ||||||||
Netherlands - 0.5% | Big Yellow Group PLC(ö) | 371,944 | 3,728 | |||||||
Eurocommercial Properties NV | 46,555 | 1,810 | British Land Co. PLC (The)(ö) | 1,358,503 | 11,550 | |||||
InterXion Holding NV(Æ) | 72,638 | 3,025 | Capital & Regional PLC(ö) | 333,802 | 260 | |||||
Vastned Retail NV(ö) | 5,632 | 211 | Derwent London PLC(ö) | 83,904 | 3,199 | |||||
Wereldhave NV(ö) | 13,034 | 600 | Great Portland Estates PLC(ö) | 643,414 | 5,765 | |||||
5,646 | Hammerson PLC(ö) | 566,388 | 4,309 | |||||||
Intu Properties PLC Class H(ö) | 306,684 | 1,096 | ||||||||
Norway - 0.3% | Kennedy Wilson Europe Real Estate | |||||||||
Entra ASA(Þ) | 284,745 | 3,267 | PLC | 14,776 | 199 | |||||
Norwegian Property ASA | 122,128 | 144 | Land Securities Group PLC(ö) | 487,812 | 6,989 | |||||
3,411 | LondonMetric Property PLC(ö) | 2,001,774 | 4,365 | |||||||
LXB Retail Properties PLC(Æ) | 571,895 | 283 | ||||||||
Singapore - 1.5% | Safestore Holdings PLC(ö) | 258,802 | 1,357 | |||||||
Ascendas Real Estate Investment | Segro PLC(ö) | 1,988,345 | 12,508 | |||||||
Trust(ö) | 491,000 | 900 | St. Modwen Properties PLC | 453,773 | 2,148 | |||||
CapitaLand Commercial Trust, Ltd.(Æ) | UNITE Group PLC (The)(ö) | 719,040 | 6,024 | |||||||
(ö) | 881,600 | 1,023 | Urban & Civic PLC | 265,251 | 914 | |||||
CapitaLand Mall Trust Class A(Æ)(ö) | 629,100 | 886 | Workspace Group PLC(ö) | 125,216 | 1,402 | |||||
CapitaLand, Ltd. | 293,400 | 788 | 68,576 | |||||||
CDL Hospitality Trusts(Æ)(ö) | 958,900 | 1,064 | ||||||||
City Developments, Ltd. | 636,200 | 4,932 | United States - 52.7% | |||||||
EC World Real Estate Investment Trust | Acadia Realty Trust(ö) | 24,079 | 700 | |||||||
Unit(Æ)(ö) | 154,400 | 84 | Agree Realty Corp.(ö) | 105,585 | 5,119 | |||||
Frasers Logistics & Industrial Trust(Æ) | Alexandria Real Estate Equities, Inc.(ö) | 110,279 | 12,407 | |||||||
(ö) | 1,594,700 | 1,154 | American Homes 4 Rent Class A(ö) | 506,547 | 11,676 | |||||
Global Logistic Properties, Ltd. | 1,232,700 | 2,539 | Apartment Investment & Management | |||||||
Keppel REIT(Æ)(ö) | 219,900 | 167 | Co. Class A(ö) | 42,069 | 1,840 | |||||
Mapletree Commercial Trust(Æ)(ö) | 1,703,100 | 1,944 | Apple Hospitality REIT, Inc.(ö) | 109,903 | 2,059 | |||||
Mapletree Greater China Commercial | AvalonBay Communities, Inc.(ö) | 150,377 | 28,547 | |||||||
Trust(Æ)(ö) | 970,200 | 743 | Boston Properties, Inc.(ö) | 93,314 | 11,814 | |||||
Suntec Real Estate Investment Trust(Æ) | Brixmor Property Group, Inc.(ö) | 437,143 | 8,634 | |||||||
(ö) | 430,600 | 545 | Camden Property Trust(ö) | 160,011 | 13,173 | |||||
UOL Group, Ltd. | 99,180 | 515 | CBL & Associates Properties, Inc.(ö) | 28,985 | 268 | |||||
17,284 | Chesapeake Lodging Trust(ö) | 94,214 | 2,196 | |||||||
Colony Starwood Homes(ö) | 88,300 | 3,053 | ||||||||
Spain - 0.9% | Columbia Property Trust, Inc.(ö) | 41,850 | 941 | |||||||
Hispania Activos Inmobiliarios Socimi | CoreSite Realty Corp. Class A(ö) | 26,946 | 2,636 | |||||||
SA(ö) | 154,380 | 2,331 | Corporate Office Properties Trust(ö) | 259,827 | 8,507 | |||||
Inmobiliaria Colonial SA | 115,095 | 892 | Cousins Properties, Inc.(ö) | 782,381 | 6,642 | |||||
Merlin Properties Socimi SA(Ñ)(ö) | 640,671 | 7,580 | CubeSmart(ö) | 248,989 | 6,310 | |||||
10,803 | CyrusOne, Inc.(ö) | 74,362 | 4,063 | |||||||
DCT Industrial Trust, Inc.(ö) | 36,543 | 1,848 | ||||||||
Sweden - 0.8% | DDR Corp.(ö) | 66,390 | 718 | |||||||
Atrium Ljungberg AB Class B | 35,131 | 581 | DiamondRock Hospitality Co.(ö) | 406,124 | 4,471 | |||||
Castellum AB | 77,895 | 1,066 | Digital Realty Trust, Inc.(ö) | 72,822 | 8,363 | |||||
Fabege AB | 151,227 | 2,605 | Douglas Emmett, Inc.(ö) | 175,601 | 6,616 | |||||
Fastighets AB Balder Class B(Æ) | 86,631 | 1,934 | Duke Realty Corp.(ö) | 78,689 | 2,182 |
See accompanying notes which are an integral part of the financial statements.
592 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||||
Principal | Fair | Principal | Fair | ||||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||||
or Shares | $ | or Shares | $ | ||||||||||
DuPont Fabros Technology, Inc.(ö) | 174,687 | 9,005 | STORE Capital Corp.(ö) | 58,609 | 1,406 | ||||||||
Education Realty Trust, Inc.(ö) | 108,863 | 4,221 | Sun Communities, Inc.(ö) | 106,244 | 8,883 | ||||||||
Empire State Realty Trust, Inc. Class | Sunstone Hotel Investors, Inc.(ö) | 569,820 | 8,485 | ||||||||||
A(ö) | 318,229 | 6,619 | Tanger Factory Outlet Centers, Inc.(ö) | 108,966 | 3,399 | ||||||||
Equinix, Inc.(ö) | 7,343 | 3,067 | UDR, Inc.(ö) | 243,497 | 9,092 | ||||||||
Equity LifeStyle Properties, Inc. Class | Urban Edge Properties(ö) | 180,417 | 4,601 | ||||||||||
A(ö) | 83,976 | 6,794 | Ventas, Inc.(ö) | 93,374 | 5,977 | ||||||||
Equity Residential(ö) | 251,658 | 16,252 | VEREIT, Inc.(ö) | 322,715 | 2,701 | ||||||||
Essex Property Trust, Inc.(ö) | 105,293 | 25,741 | Vornado Realty Trust(ö) | 318,087 | 30,612 | ||||||||
Extended Stay America, Inc. | 130,262 | 2,272 | Weingarten Realty Investors(ö) | 176,311 | 5,778 | ||||||||
Extra Space Storage, Inc.(ö) | 116,173 | 8,775 | Welltower, Inc.(ö) | 327,623 | 23,404 | ||||||||
Federal Realty Investment Trust(ö) | 15,248 | 1,995 | WP Glimcher, Inc.(ö) | 23,365 | 206 | ||||||||
Four Corners Property Trust, Inc.(ö) | 214,171 | 4,997 | Xenia Hotels & Resorts, Inc.(ö) | 54,647 | 954 | ||||||||
Gaming and Leisure Properties, Inc.(ö) | 53,132 | 1,849 | 617,521 | ||||||||||
GEO Group, Inc. (The)(ö) | 90,863 | 3,028 | |||||||||||
GGP, Inc.(Æ) | 734,389 | 15,870 | Total Common Stocks | ||||||||||
HCP, Inc.(ö) | 385,527 | 12,086 | (cost $970,580) | 1,137,938 | |||||||||
Healthcare Realty Trust, Inc.(ö) | 117,038 | 3,839 | |||||||||||
Healthcare Trust of America, Inc. Class | |||||||||||||
A(ö) | 210,705 | 6,720 | Short | -Term Investments - 2.6% | |||||||||
Hilton Worldwide Holdings, Inc. | 136,796 | 8,068 | United States - 2.6% | ||||||||||
Host Hotels & Resorts, Inc.(ö) | 645,112 | 11,580 | U.S. Cash Management Fund | 29,997,834 | (8) | 30,004 | |||||||
Hudson Pacific Properties, Inc.(ö) | 257,669 | 8,853 | Total Short-Term Investments | ||||||||||
Invitation Homes, Inc.(Æ)(ö) | 146,517 | 3,157 | (cost $30,003) | 30,004 | |||||||||
Kilroy Realty Corp.(ö) | 90,228 | 6,364 | |||||||||||
Kimco Realty Corp.(ö) | 64,890 | 1,317 | Other Securities - 1.2% | ||||||||||
LaSalle Hotel Properties(ö) | 183,329 | 5,235 | U.S. Cash Collateral Fund(×) | 14,077,301 | (8) | 14,077 | |||||||
Lexington Realty Trust(ö) | 14,207 | 144 | Total Other Securities | ||||||||||
Liberty Property Trust(ö) | 34,944 | 1,417 | (cost $14,077) | 14,077 | |||||||||
Life Storage, Inc.(Æ) | 32,202 | 2,525 | |||||||||||
Macerich Co. (The)(ö) | 126,800 | 7,916 | |||||||||||
Mack-Cali Realty Corp.(ö) | 81,544 | 2,205 | Total Investments 100.9% | ||||||||||
MedEquities Realty Trust, Inc.(ö) | 55,113 | 652 | (identified cost $1,014,660) | 1,182,019 | |||||||||
MGM Growth Properties LLC Class A(ö) | 125,705 | 3,598 | |||||||||||
Mid-America Apartment Communities, | Other Assets and Liabilities, Net | ||||||||||||
Inc.(ö) | 9,223 | 915 | - | (0.9%) | (10,053 | ) | |||||||
Monogram Residential Trust, Inc.(ö) | 38,475 | 392 | Net Assets - 100.0% | 1,171,966 | |||||||||
National Retail Properties, Inc.(ö) | 68,636 | 2,898 | |||||||||||
Paramount Group, Inc.(ö) | 212,333 | 3,482 | |||||||||||
Park Hotels & Resorts, Inc.(ö) | 589 | 15 | |||||||||||
Parkway, Inc.(ö) | 139,200 | 2,804 | |||||||||||
Pennsylvania Real Estate Investment | |||||||||||||
Trust(ö) | 168,725 | 2,337 | |||||||||||
Prologis, Inc.(ö) | 442,391 | 24,070 | |||||||||||
Public Storage(ö) | 119,900 | 25,104 | |||||||||||
QTS Realty Trust, Inc. Class A(ö) | 53,611 | 2,865 | |||||||||||
Quality Care Properties, Inc.(Æ)(ö) | 70,355 | 1,220 | |||||||||||
Realty Income Corp.(ö) | 151,911 | 8,864 | |||||||||||
Red Rock Resorts, Inc. Class A | 82,929 | 1,939 | |||||||||||
Regency Centers Corp.(ö) | 134,515 | 8,499 | |||||||||||
Retail Properties of America, Inc. Class | |||||||||||||
A(ö) | 332,675 | 4,438 | |||||||||||
Rexford Industrial Realty, Inc.(ö) | 302,776 | 7,552 | |||||||||||
Sabra Health Care REIT, Inc.(ö) | 181,873 | 4,945 | |||||||||||
Senior Housing Properties Trust(ö) | 17,397 | 374 | |||||||||||
Simon Property Group, Inc.(ö) | 294,806 | 48,720 | |||||||||||
SL Green Realty Corp.(ö) | 86,186 | 9,044 | |||||||||||
Spirit Realty Capital, Inc.(ö) | 63,961 | 602 |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 593
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.0% | ||||||||||||
BGP Holdings PLC | 08/06/09 | EUR | 4,619,419 | — | — | 67 | ||||||
67 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | ||||||
Amounts in thousands (except contract amounts) | ||||||
Unrealized | ||||||
Appreciation | ||||||
Number of | Notional | Expiration | (Depreciation) | |||
Contracts | Amount | Date | $ | |||
Long Positions | ||||||
Dow Jones U.S. Real Estate Index Futures | 477 | USD | 14,863 | 06/17 | 45 | |
FTSE/EPRA Europe Index Futures | 180 | EUR | 3,796 | 06/17 | 172 | |
Hang Seng Index Futures | 14 | HKD | 17,193 | 05/17 | 30 | |
MSCI Singapore Index Futures | 27 | SGD | 938 | 05/17 | 6 | |
S&P/TSX 60 Index Futures | 6 | CAD | 1,100 | 06/17 | 2 | |
SPI 200 Index Futures | 15 | AUD | 2,217 | 06/17 | 35 | |
TOPIX Index Futures | 22 | JPY | 336,601 | 06/17 | 33 | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 323 |
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of America | USD | 112 | AUD | 150 | 06/21/17 | — | ||
Bank of America | USD | 218 | AUD | 290 | 06/21/17 | (1 | ) | |
Bank of America | USD | 432 | AUD | 570 | 06/21/17 | (5 | ) | |
Bank of America | USD | 664 | AUD | 880 | 06/21/17 | (5 | ) | |
Bank of America | USD | 67 | EUR | 62 | 05/02/17 | — | ||
Bank of America | USD | 153 | EUR | 141 | 05/02/17 | — | ||
Bank of America | USD | 257 | EUR | 236 | 05/02/17 | — | ||
Bank of America | USD | 22 | EUR | 20 | 05/03/17 | — | ||
Bank of America | USD | 23 | EUR | 21 | 05/03/17 | — | ||
Bank of America | USD | 88 | EUR | 81 | 05/03/17 | — | ||
Bank of America | USD | 102 | EUR | 93 | 05/03/17 | — | ||
Bank of America | USD | 397 | EUR | 370 | 06/21/17 | 7 | ||
Bank of America | USD | 1,094 | EUR | 1,020 | 06/21/17 | 20 | ||
Bank of America | USD | 1,406 | EUR | 1,310 | 06/21/17 | 24 | ||
Bank of America | USD | 149 | HKD | 1,160 | 06/21/17 | — | ||
Bank of America | USD | 303 | HKD | 2,350 | 06/21/17 | (1 | ) | |
Bank of America | USD | 614 | HKD | 4,760 | 06/21/17 | (1 | ) | |
Bank of America | USD | 922 | HKD | 7,160 | 06/21/17 | (1 | ) | |
Bank of America | USD | 12 | JPY | 1,362 | 05/02/17 | — | ||
Bank of America | USD | 12 | JPY | 1,365 | 05/08/17 | — | ||
Bank of America | USD | 384 | JPY | 43,950 | 06/21/17 | 11 | ||
Bank of America | USD | 822 | JPY | 93,810 | 06/21/17 | 21 | ||
Bank of America | USD | 1,496 | JPY | 161,870 | 06/21/17 | (41 | ) | |
Bank of America | USD | 16 | NOK | 135 | 05/03/17 | — | ||
Bank of America | USD | 219 | NOK | 1,873 | 05/03/17 | — | ||
Bank of America | USD | 33 | SEK | 289 | 05/03/17 | — |
See accompanying notes which are an integral part of the financial statements.
594 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||||
Amounts in thousands | |||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Amount | Amount | (Depreciation) | |||||||
Counterparty | Sold | Bought | Settlement Date | $ | |||||
Bank of America | USD | 60 | SEK | 529 | 05/03/17 | — | |||
Bank of America | USD | 177 | SGD | 250 | 06/21/17 | 2 | |||
Bank of America | USD | 251 | SGD | 350 | 06/21/17 | — | |||
Bank of America | AUD | 150 | USD | 115 | 06/21/17 | 2 | |||
Bank of America | AUD | 210 | USD | 158 | 06/21/17 | 1 | |||
Bank of America | CAD | 180 | USD | 135 | 06/21/17 | 3 | |||
Bank of America | CAD | 180 | USD | 135 | 06/21/17 | 3 | |||
Bank of America | EUR | 490 | USD | 520 | 06/21/17 | (15 | ) | ||
Bank of America | GBP | 9 | USD | 11 | 05/03/17 | — | |||
Bank of America | GBP | 16 | USD | 21 | 05/03/17 | — | |||
Bank of America | GBP | 42 | USD | 55 | 05/03/17 | — | |||
Bank of America | HKD | 1,220 | USD | 157 | 06/21/17 | — | |||
Bank of America | HKD | 1,380 | USD | 178 | 06/21/17 | — | |||
Bank of America | JPY | 30,760 | USD | 277 | 06/21/17 | — | |||
Bank of Montreal | USD | 342 | AUD | 447 | 06/21/17 | (7 | ) | ||
Bank of Montreal | USD | 163 | CAD | 218 | 06/21/17 | (4 | ) | ||
Bank of Montreal | USD | 1,077 | EUR | 1,017 | 06/21/17 | 34 | |||
Bank of Montreal | USD | 476 | HKD | 3,688 | 06/21/17 | (1 | ) | ||
Bank of Montreal | USD | 584 | JPY | 66,257 | 06/21/17 | 12 | |||
Bank of Montreal | USD | 148 | SGD | 209 | 06/21/17 | 2 | |||
BNP Paribas | CAD | 190 | USD | 142 | 06/21/17 | 3 | |||
Brown Brothers Harriman | USD | 213 | EUR | 200 | 06/21/17 | 5 | |||
Brown Brothers Harriman | AUD | 300 | USD | 227 | 06/21/17 | 3 | |||
Brown Brothers Harriman | CAD | 180 | USD | 135 | 06/21/17 | 3 | |||
Brown Brothers Harriman | HKD | 2,410 | USD | 310 | 06/21/17 | — | |||
Brown Brothers Harriman | JPY | 23,880 | USD | 210 | 06/21/17 | (4 | ) | ||
Brown Brothers Harriman | JPY | 29,170 | USD | 269 | 06/21/17 | 7 | |||
Brown Brothers Harriman | JPY | 58,780 | USD | 540 | 06/21/17 | 12 | |||
Brown Brothers Harriman | SGD | 140 | USD | 100 | 06/21/17 | — | |||
Citigroup | USD | 111 | CAD | 150 | 06/21/17 | (1 | ) | ||
Citigroup | USD | 134 | CAD | 180 | 06/21/17 | (2 | ) | ||
Citigroup | USD | 542 | CAD | 730 | 06/21/17 | (7 | ) | ||
Citigroup | USD | 316 | JPY | 35,090 | 06/21/17 | (1 | ) | ||
Citigroup | CAD | 180 | USD | 135 | 06/21/17 | 3 | |||
Citigroup | EUR | 240 | USD | 256 | 06/21/17 | (6 | ) | ||
Citigroup | EUR | 650 | USD | 691 | 06/21/17 | (18 | ) | ||
Citigroup | SGD | 140 | USD | 100 | 06/21/17 | — | |||
Commonwealth Bank of Australia | USD | 342 | AUD | 447 | 06/21/17 | (7 | ) | ||
Commonwealth Bank of Australia | USD | 163 | CAD | 218 | 06/21/17 | (4 | ) | ||
Commonwealth Bank of Australia | USD | 1,077 | EUR | 1,017 | 06/21/17 | 33 | |||
Commonwealth Bank of Australia | USD | 476 | HKD | 3,688 | 06/21/17 | (1 | ) | ||
Commonwealth Bank of Australia | USD | 584 | JPY | 66,257 | 06/21/17 | 12 | |||
Commonwealth Bank of Australia | USD | 148 | SGD | 209 | 06/21/17 | 2 | |||
Royal Bank of Canada | USD | 339 | AUD | 447 | 06/21/17 | (4 | ) | ||
Royal Bank of Canada | USD | 163 | CAD | 218 | 06/21/17 | (3 | ) | ||
Royal Bank of Canada | USD | 1,074 | EUR | 1,017 | 06/21/17 | 36 | |||
Royal Bank of Canada | USD | 476 | HKD | 3,688 | 06/21/17 | (1 | ) | ||
Royal Bank of Canada | USD | 582 | JPY | 66,257 | 06/21/17 | 13 | |||
Royal Bank of Canada | USD | 148 | SGD | 209 | 06/21/17 | 2 | |||
Royal Bank of Canada | AUD | 250 | USD | 187 | 06/21/17 | — | |||
Royal Bank of Canada | EUR | 340 | USD | 364 | 06/21/17 | (7 | ) | ||
Royal Bank of Canada | EUR | 630 | USD | 669 | 06/21/17 | (19 | ) | ||
Royal Bank of Canada | HKD | 3,650 | USD | 470 | 06/21/17 | 1 |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 595
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Royal Bank of Canada | JPY | 45,120 | USD | 408 | 06/21/17 | 2 | ||
Royal Bank of Canada | SGD | 140 | USD | 100 | 06/21/17 | (1 | ) | |
Standard Chartered | USD | 342 | AUD | 447 | 06/21/17 | (7 | ) | |
Standard Chartered | USD | 163 | CAD | 218 | 06/21/17 | (4 | ) | |
Standard Chartered | USD | 1,076 | EUR | 1,017 | 06/21/17 | 35 | ||
Standard Chartered | USD | 476 | HKD | 3,688 | 06/21/17 | (1 | ) | |
Standard Chartered | USD | 584 | JPY | 66,257 | 06/21/17 | 12 | ||
Standard Chartered | USD | 148 | SGD | 209 | 06/21/17 | 2 | ||
State Street | AUD | 570 | USD | 439 | 06/21/17 | 13 | ||
State Street | EUR | 149 | USD | 162 | 05/02/17 | — | ||
State Street | EUR | 244 | USD | 266 | 05/02/17 | — | ||
State Street | EUR | 770 | USD | 836 | 06/21/17 | (5 | ) | |
State Street | GBP | 25 | USD | 33 | 05/02/17 | — | ||
State Street | HKD | 411 | USD | 53 | 05/02/17 | — | ||
State Street | HKD | 4,910 | USD | 633 | 06/21/17 | 1 | ||
State Street | JPY | 92,540 | USD | 830 | 06/21/17 | (2 | ) | |
State Street | NOK | 11 | USD | 1 | 05/02/17 | — | ||
State Street | SGD | 210 | USD | 150 | 06/21/17 | — | ||
UBS | USD | 145 | AUD | 190 | 06/21/17 | (3 | ) | |
UBS | USD | 452 | JPY | 50,190 | 06/21/17 | (1 | ) | |
UBS | AUD | 190 | USD | 145 | 06/21/17 | 3 | ||
UBS | EUR | 450 | USD | 483 | 06/21/17 | (7 | ) | |
UBS | JPY | 50,190 | USD | 452 | 06/21/17 | 1 | ||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 148 |
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Australia | $ | — | $ | 66,011 | $ | 67 | $ | — | $ | 66,078 | 5.6 | ||||||
Austria | — | 7,793 | — | — | 7,793 | 0.7 | |||||||||||
Belgium | — | 1,429 | — | — | 1,429 | 0.1 | |||||||||||
Canada | 21,726 | — | — | — | 21,726 | 1.9 | |||||||||||
China | — | 485 | — | — | 485 | —* | |||||||||||
Finland | — | 1,005 | — | — | 1,005 | 0.1 | |||||||||||
France | 5,694 | 34,322 | — | — | 40,016 | 3.4 | |||||||||||
Germany | — | 38,631 | — | — | 38,631 | 3.3 | |||||||||||
Hong Kong | — | 95,771 | — | — | 95,771 | 8.2 | |||||||||||
Ireland | — | 4,430 | — | — | 4,430 | 0.4 | |||||||||||
Italy | — | 99 | — | — | 99 | —* | |||||||||||
Japan | — | 122,536 | — | — | 122,536 | 10.4 | |||||||||||
Netherlands | 3,025 | 2,621 | — | — | 5,646 | 0.5 | |||||||||||
Norway | — | 3,411 | — | — | 3,411 | 0.3 | |||||||||||
Singapore | — | 17,284 | — | — | 17,284 | 1.5 |
See accompanying notes which are an integral part of the financial statements.
596 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Spain | — | 10,803 | — | — | 10,803 | 0.9 | ||||||||||||
Sweden | — | 9,681 | — | — | 9,681 | 0.8 | ||||||||||||
Switzerland | — | 5,017 | — | — | 5,017 | 0.4 | ||||||||||||
United Kingdom | — | 68,576 | — | — | 68,576 | 5.9 | ||||||||||||
United States | 617,521 | — | — | — | 617,521 | 52.7 | ||||||||||||
Short-Term Investments | — | — | — | 30,004 | 30,004 | 2.6 | ||||||||||||
Other Securities | — | — | — | 14,077 | 14,077 | 1.2 | ||||||||||||
Total Investments | 647,966 | 489,905 | 67 | 44,081 | 1,182,019 | 100.9 | ||||||||||||
Other Assets and Liabilities, Net | 0.9 | |||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 323 | — | — | — | 323 | —* | ||||||||||||
Foreign Currency Exchange Contracts | 1 | 345 | — | — | 346 | —* | ||||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Foreign Currency Exchange Contracts | (1 | ) | (197 | ) | — | — | (198 | ) | (—)* | |||||||||
Total Other Financial Instruments** | $ | 323 | $ | 148 | $ | — | $ | — | $ | 471 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
Amounts in thousands | |||
Fair Value | |||
Property Sector Exposure | $ | ||
Diversified | 342,697 | ||
Healthcare | 64,967 | ||
Industrial | 73,098 | ||
Lodging/Resorts | 52,240 | ||
Office | 167,661 | ||
Residential | 176,248 | ||
Retail | 213,228 | ||
Self Storage | 47,799 | ||
Short-Term Investments | 30,004 |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 597
Russell Investment Company
Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Other Securities | 14,077 | ||
Total Investments | 1,182,019 |
See accompanying notes which are an integral part of the financial statements.
598 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||
Equity | Currency | |||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||
Location: Statement of Assets and Liabilities - Assets | ||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 346 | ||
Variation margin on futures contracts* | 323 | — | ||||
Total | $ | 323 | $ | 346 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 198 | ||
Foreign | ||||||
Equity | Currency | |||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | ||||
Location: Statement of Operations - Net realized gain (loss) | ||||||
Futures contracts | $ | 807 | $ | — | ||
Foreign currency-related transactions** | — | (1,404 | ) | |||
Total | $ | 807 | $ | (1,404 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||
Futures contracts | $ | 962 | $ | — | ||
Foreign currency-related transactions*** | — | 861 | ||||
Total | $ | 962 | $ | 861 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 599
Russell Investment Company
Global Real Estate Securities Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Securities on Loan* | Investments, at fair value | $ | 13,314 | $ | — $ | 13,314 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 346 | — | 346 | |||||
Futures Contracts | Variation margin on futures contracts | 7 | — | 7 | |||||
Total Financial and Derivative Assets | 13,667 | — | 13,667 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (7 | ) | — | (7 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 13,660 | $ | — $ | 13,660 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Assets | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||
Bank of America | $ | 96 | $ | 71 | $ | — | $ | 25 | |||
Bank of Montreal | 48 | 12 | — | 36 | |||||||
Barclays | 11,178 | — | 11,178 | — | |||||||
BNP Paribas | 3 | — | — | 3 | |||||||
Brown Brothers Harriman | 30 | 4 | — | 26 | |||||||
Citigroup | 904 | 3 | 901 | — | |||||||
Commonwealth Bank of Australia | 47 | 11 | — | 36 | |||||||
JPMorgan Chase | 934 | — | 934 | — | |||||||
Merrill Lynch | 300 | — | 300 | — | |||||||
Royal Bank of Canada | 54 | 35 | — | 19 | |||||||
Standard Chartered | 48 | 12 | — | 36 | |||||||
State Street | 14 | 6 | — | 8 | |||||||
UBS | 4 | 4 | — | — | |||||||
Total | $ | 13,660 | $ | 158 | $ | 13,313 | $ | 189 |
See accompanying notes which are an integral part of the financial statements.
600 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 216 | $ | — $ | 216 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 198 | — | 198 | |||||
Total Financial and Derivative Liabilities | 414 | — | 414 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (216 | ) | — | (216 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 198 | $ | — $ | 198 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 71 | $ | 71 | $ | — | $ — | ||
Bank of Montreal | 12 | 12 | — | — | |||||
Brown Brothers Harriman | 4 | 4 | — | — | |||||
Citigroup | 35 | 3 | — | 32 | |||||
Commonwealth Bank of Australia | 11 | 11 | — | — | |||||
Royal Bank of Canada | 35 | 35 | — | — | |||||
Standard Chartered | 12 | 12 | — | — | |||||
State Street | 6 | 6 | — | — | |||||
UBS | 12 | 4 | — | 8 | |||||
Total | $ | 198 | $ | 158 | $ | — | $ 40 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 601
Russell Investment Company
Global Real Estate Securities Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 1,014,660 |
Investments, at fair value(*)(>) | 1,182,019 | |
Cash (restricted)(a) | 1,400 | |
Foreign currency holdings(^) | 2,956 | |
Unrealized appreciation on foreign currency exchange contracts | 346 | |
Receivables: | ||
Dividends and interest | 2,082 | |
Dividends from affiliated funds | 17 | |
Investments sold | 10,187 | |
Fund shares sold | 1,311 | |
Foreign capital gains taxes recoverable | 171 | |
Variation margin on futures contracts | 7 | |
Prepaid expenses | 12 | |
Total assets | 1,200,508 | |
Liabilities | ||
Payables: | ||
Due to custodian | 100 | |
Investments purchased | 11,134 | |
Fund shares redeemed | 1,305 | |
Accrued fees to affiliates | 1,038 | |
Other accrued expenses | 474 | |
Variation margin on futures contracts | 216 | |
Unrealized depreciation on foreign currency exchange contracts | 198 | |
Payable upon return of securities loaned | 14,077 | |
Total liabilities | 28,542 | |
Net Assets | $ | 1,171,966 |
See accompanying notes which are an integral part of the financial statements.
602 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (27,038 | ) |
Accumulated net realized gain (loss) | (24,665 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 167,359 | ||
Futures contracts | 323 | ||
Foreign currency-related transactions | 154 | ||
Shares of beneficial interest | 348 | ||
Additional paid-in capital | 1,055,485 | ||
Net Assets | $ | 1,171,966 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 32.91 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 34.92 | |
Class A — Net assets | $ | 24,142,126 | |
Class A — Shares outstanding ($.01 par value) | 733,527 | ||
Net asset value per share: Class C(#) | $ | 31.75 | |
Class C — Net assets | $ | 27,434,851 | |
Class C — Shares outstanding ($.01 par value) | 863,966 | ||
Net asset value per share: Class E(#) | $ | 32.99 | |
Class E — Net assets | $ | 5,274,825 | |
Class E — Shares outstanding ($.01 par value) | 159,905 | ||
Net asset value per share: Class R6(#) | $ | 33.73 | |
Class R6 — Net assets | $ | 5,152,918 | |
Class R6 — Shares outstanding ($.01 par value) | 152,757 | ||
Net asset value per share: Class S(#) | $ | 33.73 | |
Class S — Net assets | $ | 999,199,521 | |
Class S — Shares outstanding ($.01 par value) | 29,623,900 | ||
Net asset value per share: Class T(#) | $ | 33.72 | |
Class T — Net assets | $ | 1,137,692 | |
Class T — Shares outstanding ($.01 par value) | 33,738 | ||
Net asset value per share: Class Y(#) | $ | 33.72 | |
Class Y — Net assets | $ | 109,623,668 | |
Class Y — Shares outstanding ($.01 par value) | 3,250,764 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 2,954 | |
(*) Securities on loan included in investments | $ | 13,314 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 44,081 | |
(a) Cash Collateral for Futures | $ | 1,400 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 603
Russell Investment Company
Global Real Estate Securities Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 12,715 | |
Dividends from affiliated funds | 112 | ||
Interest | 13 | ||
Securities lending income (net) | 1 | ||
Securities lending income from affiliated funds (net) | 14 | ||
Less foreign taxes withheld | (1,074 | ) | |
Total investment income | 11,781 | ||
Expenses | |||
Advisory fees | 4,657 | ||
Administrative fees | 281 | ||
Custodian fees | 270 | ||
Distribution fees - Class A | 30 | ||
Distribution fees - Class C | 109 | ||
Transfer agent fees - Class A | 24 | ||
Transfer agent fees - Class C | 29 | ||
Transfer agent fees - Class E | 11 | ||
Transfer agent fees - Class R6 | 1 | ||
Transfer agent fees - Class S | 982 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 2 | ||
Professional fees | 52 | ||
Registration fees | 58 | ||
Shareholder servicing fees - Class C | 36 | ||
Shareholder servicing fees - Class E | 14 | ||
Trustees’ fees | 22 | ||
Printing fees | 143 | ||
Miscellaneous | 11 | ||
Expenses before reductions | 6,732 | ||
Expense reductions | (—)** | ||
Net expenses | 6,732 | ||
Net investment income (loss) | 5,049 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 17,332 | ||
Futures contracts | 807 | ||
Foreign currency-related transactions | (1,573 | ) | |
Net realized gain (loss) | 16,566 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 15,480 | ||
Futures contracts | 962 | ||
Foreign currency-related transactions | 986 | ||
Net change in unrealized appreciation (depreciation) | 17,428 | ||
Net realized and unrealized gain (loss) | 33,994 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 39,043 | |
** Less than 500 shares. |
See accompanying notes which are an integral part of the financial statements.
604 Global Real Estate Securities Fund
Russell Investment Company
Global Real Estate Securities Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 5,049 | $ | 31,607 | ||
Net realized gain (loss) | 16,566 | 102,986 | ||||
Net change in unrealized appreciation (depreciation) | 17,428 | (121,109 | ) | |||
Net increase (decrease) in net assets from operations | 39,043 | 13,484 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (686 | ) | (614 | ) | ||
Class C | (746 | ) | (600 | ) | ||
Class E | (420 | ) | (532 | ) | ||
Class R6 | (36 | ) | (4 | ) | ||
Class S | (28,231 | ) | (27,436 | ) | ||
Class T | (1 | ) | — | |||
Class Y | (3,658 | ) | (3,215 | ) | ||
From net realized gain | ||||||
Class A | (1,482 | ) | (1,563 | ) | ||
Class C | (1,865 | ) | (2,013 | ) | ||
Class E | (1,102 | ) | (1,388 | ) | ||
Class R6 | (17 | ) | — | |||
Class S | (58,183 | ) | (66,390 | ) | ||
Class Y | (7,439 | ) | (7,783 | ) | ||
Net decrease in net assets from distributions | (103,866 | ) | (111,538 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 13,674 | (248,685 | ) | |||
Total Net Increase (Decrease) in Net Assets | (51,149 | ) | (346,739 | ) | ||
Net Assets | ||||||
Beginning of period | 1,223,115 | 1,569,854 | ||||
End of period | $ | 1,171,966 | $ | 1,223,115 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (27,038 | ) | $ | 1,691 |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 605
Russell Investment Company
Global Real Estate Securities Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 34 | $ | 1,117 | 76 | $ | 2,732 | ||||||
Proceeds from reinvestment of distributions | 68 | 2,158 | 62 | 2,166 | ||||||||
Payments for shares redeemed | (104 | ) | (3,446 | ) | (186 | ) | (6,647 | ) | ||||
Net increase (decrease) | (2 | ) | (171 | ) | (48 | ) | (1,749 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 19 | 622 | 50 | 1,731 | ||||||||
Proceeds from reinvestment of distributions | 83 | 2,554 | 75 | 2,550 | ||||||||
Payments for shares redeemed | (161 | ) | (5,116 | ) | (226 | ) | (7,888 | ) | ||||
Net increase (decrease) | (59 | ) | (1,940 | ) | (101 | ) | (3,607 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 25 | 818 | 90 | 3,251 | ||||||||
Proceeds from reinvestment of distributions | 47 | 1,495 | 53 | 1,872 | ||||||||
Payments for shares redeemed | (448 | ) | (14,585 | ) | (307 | ) | (11,245 | ) | ||||
Net increase (decrease) | (376 | ) | (12,272 | ) | (164 | ) | (6,122 | ) | ||||
Class R6(1) | ||||||||||||
Proceeds from shares sold | 161 | 5,329 | 9 | 322 | ||||||||
Proceeds from reinvestment of distributions | 2 | 53 | —** | 4 | ||||||||
Payments for shares redeemed | (19 | ) | (625 | ) | (1 | ) | (23 | ) | ||||
Net increase (decrease) | 144 | 4,757 | 8 | 303 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 3,719 | 124,987 | 4,835 | 174,901 | ||||||||
Proceeds from reinvestment of distributions | 2,627 | 85,747 | 2,589 | 92,685 | ||||||||
Payments for shares redeemed | (5,558 | ) | (187,808 | ) | (13,084 | ) | (480,200 | ) | ||||
Net increase (decrease) | 788 | 22,926 | (5,660 | ) | (212,614 | ) | ||||||
Class T(2) | ||||||||||||
Proceeds from shares sold | 34 | 1,145 | — | — | ||||||||
Proceeds from reinvestment of distributions | —** | 1 | — | — | ||||||||
Payments for shares redeemed | (—)** | (2 | ) | — | — | |||||||
Net increase (decrease) | 34 | 1,144 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 892 | 30,434 | 339 | 12,264 | ||||||||
Proceeds from reinvestment of distributions | 340 | 11,098 | 307 | 10,998 | ||||||||
Payments for shares redeemed | (1,246 | ) | (42,302 | ) | (1,322 | ) | (48,158 | ) | ||||
Net increase (decrease) | (14 | ) | (770 | ) | (676 | ) | (24,896 | ) | ||||
Total increase (decrease) | 515 | $ | 13,674 | (6,641 | ) | $ | (248,685 | ) |
** Less than $500.
(1) For the period March 1, 2016 (commencement of operations) to October 31, 2016.
(2) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
606 Global Real Estate Securities Fund
(This page intentionally left blank)
Russell Investment Company
Global Real Estate Securities Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||||
Class A | |||||||||||||||||||
April 30, 2017* | 34.94 | .10 | .92 | 1.02 | (.96 | ) | (2.09 | ) | |||||||||||
October 31, 2016 | 37.65 | .73 | (.62 | ) | .11 | (.80 | ) | (2.02 | ) | ||||||||||
October 31, 2015 | 39.99 | .51 | .37 | .88 | (.98 | ) | (2.24 | ) | |||||||||||
October 31, 2014 | 40.49 | .54 | 2.97 | 3.51 | (1.07 | ) | (2.94 | ) | |||||||||||
October 31, 2013 | 38.18 | .58 | 3.94 | 4.52 | (2.08 | ) | (.13 | ) | |||||||||||
October 31, 2012 | 33.52 | .63 | 4.72 | 5.35 | (.69 | ) | — | ||||||||||||
Class C | |||||||||||||||||||
April 30, 2017* | 33.82 | (.02 | ) | .88 | .86 | (.84 | ) | (2.09 | ) | ||||||||||
October 31, 2016 | 36.60 | .44 | (.59 | ) | (.15 | ) | (.61 | ) | (2.02 | ) | |||||||||
October 31, 2015 | 38.96 | .22 | .36 | .58 | (.70 | ) | (2.24 | ) | |||||||||||
October 31, 2014 | 39.55 | .24 | 2.90 | 3.14 | (.79 | ) | (2.94 | ) | |||||||||||
October 31, 2013 | 37.34 | .28 | 3.85 | 4.13 | (1.79 | ) | (.13 | ) | |||||||||||
October 31, 2012 | 32.83 | .36 | 4.60 | 4.96 | (.45 | ) | — | ||||||||||||
Class E | |||||||||||||||||||
April 30, 2017* | 35.00 | .13 | .89 | 1.02 | (.94 | ) | (2.09 | ) | |||||||||||
October 31, 2016 | 37.70 | .73 | (.61 | ) | .12 | (.80 | ) | (2.02 | ) | ||||||||||
October 31, 2015 | 40.02 | .50 | .39 | .89 | (.97 | ) | (2.24 | ) | |||||||||||
October 31, 2014 | 40.52 | .54 | 2.97 | 3.51 | (1.07 | ) | (2.94 | ) | |||||||||||
October 31, 2013 | 38.20 | .58 | 3.95 | 4.53 | (2.08 | ) | (.13 | ) | |||||||||||
October 31, 2012 | 33.54 | .63 | 4.72 | 5.35 | (.69 | ) | — | ||||||||||||
Class R6 | |||||||||||||||||||
April 30, 2017* | 35.74 | .18 | .93 | 1.11 | (1.03 | ) | (2.09 | ) | |||||||||||
October 31, 2016(8) | 33.90 | .55 | 2.21 | 2.76 | (.92 | ) | — | ||||||||||||
Class S | |||||||||||||||||||
April 30, 2017* | 35.74 | .15 | .94 | 1.09 | (1.01 | ) | (2.09 | ) | |||||||||||
October 31, 2016 | 38.42 | .84 | (.63 | ) | .21 | (.87 | ) | (2.02 | ) | ||||||||||
October 31, 2015 | 40.73 | .61 | .39 | 1.00 | (1.07 | ) | (2.24 | ) | |||||||||||
October 31, 2014 | 41.16 | .64 | 3.04 | 3.68 | (1.17 | ) | (2.94 | ) | |||||||||||
October 31, 2013 | 38.78 | .67 | 4.02 | 4.69 | (2.18 | ) | (.13 | ) | |||||||||||
October 31, 2012 | 34.03 | .73 | 4.79 | 5.52 | (.77 | ) | — | ||||||||||||
Class T | |||||||||||||||||||
April 30, 2017(10) | 33.36 | (.19 | ) | .81 | .62 | (.26 | ) | — | |||||||||||
Class Y | |||||||||||||||||||
April 30, 2017* | 35.73 | .18 | .94 | 1.12 | (1.04 | ) | (2.09 | ) | |||||||||||
October 31, 2016 | 38.39 | .90 | (.61 | ) | .29 | (.93 | ) | (2.02 | ) | ||||||||||
October 31, 2015 | 40.71 | .69 | .38 | 1.07 | (1.15 | ) | (2.24 | ) | |||||||||||
October 31, 2014 | 41.15 | .73 | 3.01 | 3.74 | (1.24 | ) | (2.94 | ) | |||||||||||
October 31, 2013 | 38.76 | .84 | 3.94 | 4.78 | (2.25 | ) | (.13 | ) | |||||||||||
October 31, 2012 | 34.03 | .81 | 4.77 | 5.58 | (.85 | ) | — | ||||||||||||
See accompanying notes which are an integral part of the financial statements.
608 Global Real Estate Securities Fund
% | % | % | ||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||||
Total Distributions | Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | ||||||||||
(3.05 | ) | 32.91 | 3.27 | 24,142 | 1.39 | 1.39 | .62 | 42 | ||||||||||
(2.82 | ) | 34.94 | .42 | 25,718 | 1.38 | 1.38 | 2.03 | 79 | ||||||||||
(3.22 | ) | 37.65 | 2.22 | 29,511 | 1.37 | 1.37 | 1.33 | 61 | ||||||||||
(4.01 | ) | 39.99 | 9.98 | 30,324 | 1.36 | 1.36 | 1.41 | 69 | ||||||||||
(2.21 | ) | 40.49 | 12.17 | 29,098 | 1.35 | 1.35 | 1.47 | 78 | ||||||||||
(.69 | ) | 38.18 | 16.03 | 27,867 | 1.35 | 1.35 | 1.79 | 64 | ||||||||||
(2.93 | ) | 31.75 | 2.87 | 27,435 | 2.14 | 2.14 | (.13 | ) | 42 | |||||||||
(2.63 | ) | 33.82 | (.31 | ) | 31,202 | 2.13 | 2.13 | 1.28 | 79 | |||||||||
(2.94 | ) | 36.60 | 1.46 | 37,474 | 2.12 | 2.12 | .58 | 61 | ||||||||||
(3.73 | ) | 38.96 | 9.14 | 41,936 | 2.11 | 2.11 | .66 | 69 | ||||||||||
(1.92 | ) | 39.55 | 11.34 | 44,084 | 2.10 | 2.10 | .73 | 78 | ||||||||||
(.45 | ) | 37.34 | 15.17 | 42,262 | 2.10 | 2.10 | 1.05 | 64 | ||||||||||
(3.03 | ) | 32.99 | 3.27 | 5,275 | 1.39 | 1.39 | .77 | 42 | ||||||||||
(2.82 | ) | 35.00 | .44 | 18,764 | 1.38 | 1.38 | 2.03 | 79 | ||||||||||
(3.21 | ) | 37.70 | 2.25 | 26,394 | 1.37 | 1.37 | 1.30 | 61 | ||||||||||
(4.01 | ) | 40.02 | 9.95 | 35,655 | 1.36 | 1.36 | 1.42 | 69 | ||||||||||
(2.21 | ) | 40.52 | 12.18 | 38,596 | 1.35 | 1.35 | 1.46 | 78 | ||||||||||
(.69 | ) | 38.20 | 16.01 | 36,250 | 1.35 | 1.35 | 1.79 | 64 | ||||||||||
(3.12 | ) | 33.73 | 3.41 | 5,153 | .99 | .97 | 1.10 | 42 | ||||||||||
(.92 | ) | 35.74 | 8.07 | 298 | .98 | .96 | 2.20 | 79 | ||||||||||
(3.10 | ) | 33.73 | 3.39 | 999,199 | 1.14 | 1.14 | .88 | 42 | ||||||||||
(2.89 | ) | 35.74 | .68 | 1,030,471 | 1.13 | 1.13 | 2.28 | 79 | ||||||||||
(3.31 | ) | 38.42 | 2.51 | 1,325,152 | 1.12 | 1.12 | 1.57 | 61 | ||||||||||
(4.11 | ) | 40.73 | 10.23 | 1,556,497 | 1.11 | 1.11 | 1.65 | 69 | ||||||||||
(2.31 | ) | 41.16 | 12.46 | 1,373,266 | 1.10 | 1.10 | 1.68 | 78 | ||||||||||
(.77 | ) | 38.78 | 16.32 | 1,174,848 | 1.10 | 1.10 | 2.05 | 64 | ||||||||||
(.26 | ) | 33.72 | 1.88 | 1,138 | 1.14 | 1.04 | (4.77 | ) | 42 | |||||||||
(3.13 | ) | 33.72 | 3.49 | 109,624 | .94 | .94 | 1.07 | 42 | ||||||||||
(2.95 | ) | 35.73 | .88 | 116,662 | .93 | .93 | 2.47 | 79 | ||||||||||
(3.39 | ) | 38.39 | 2.69 | 151,323 | .92 | .92 | 1.78 | 61 | ||||||||||
(4.18 | ) | 40.71 | 10.45 | 169,233 | .91 | .91 | 1.88 | 69 | ||||||||||
(2.38 | ) | 41.15 | 12.69 | 235,303 | .90 | .90 | 2.03 | 78 | ||||||||||
(.85 | ) | 38.76 | 16.53 | 354,260 | .92 | .92 | 2.26 | 64 |
See accompanying notes which are an integral part of the financial statements.
Global Real Estate Securities Fund 609
Russell Investment Company
Global Real Estate Securities Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 778,102 |
Administration fees | 46,934 | |
Distribution fees | 22,263 | |
Shareholder servicing fees | 6,844 | |
Transfer agent fees | 175,757 | |
Trustee fees | 8,255 | |
$ | 1,038,155 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Collateral Fund | $ | 3,104 | $ | 49,213 | $ | 38,240 | $ | — | $ — | $ | 14,077 | $ | 14 | $ | — | |||
U.S. Cash Management Fund | 28,329 | 273,638 | 271,961 | — | (2) | 30,004 | 112 | — | ||||||||||
$ | 31,433 | $ | 322,851 | $ | 310,201 | $ | — | $ (2) | $ | 44,081 | $ | 126 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 1,078,805,589 | |||
Unrealized Appreciation | $ | 117,901,237 | |||
Unrealized Depreciation | (14,687,316 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 103,213,921 |
See accompanying notes which are an integral part of the financial statements.
610 Global Real Estate Securities Fund
Russell Investment Company
Multi-Strategy Income Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,053.50 | $ | 1,019.34 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 5.60 | $ | 5.51 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 1.10% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,048.60 | $ | 1,015.62 | |
Expenses Paid During Period* | $ | 9.40 | $ | 9.25 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.85% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,053.30 | $ | 1,019.39 | |
of other funds. | Expenses Paid During Period* | $ | 5.55 | $ | 5.46 | |
* Expenses are equal to the Fund's annualized expense ratio of 1.09% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Multi-Strategy Income Fund 611
Russell Investment Company
Multi-Strategy Income Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,054.70 | $ | 1,020.58 | ||
Expenses Paid During Period* | $ | 4.33 | $ | 4.26 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.85% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class T | Performance | expenses) | ||||
Beginning Account Value | ||||||
March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,010.10 | $ | 1,021.08 | ||
Expenses Paid During Period* | $ | 0.93 | $ | 3.76 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.75% | ||||||
(representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | ||||||
commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
0.75% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | ||||||
on-half year period). | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,055.60 | $ | 1,021.57 | ||
Expenses Paid During Period* | $ | 3.31 | $ | 3.26 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.65% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
612 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Long-Term Investments - 59.7% | Cheniere Corpus Christi Holdings, LLC | ||||||
Asset-Backed Securities - 0.0% | 5.875% due 03/31/25 (Þ) | 405 | 431 | ||||
Wendy's Funding LLC | Citigroup, Inc. | ||||||
Series 2015-1A Class A2I | 3.200% due 10/21/26 | 750 | 725 | ||||
3.371% due 06/15/45 (Þ) | 424 | 426 | Series R | ||||
6.125% due 12/31/49 (ƒ) | 649 | 692 | |||||
Corporate Bonds and Notes - 16.0% | Series T | ||||||
Alexandria Real Estate Equities, Inc. | 6.250% due 12/29/49 (ƒ) | 655 | 713 | ||||
3.950% due 01/15/28 | 410 | 414 | |||||
American Airlines 2016-2 Class A Pass | Cleaver-Brooks, Inc. | ||||||
Through Trust | 8.750% due 12/15/19 (Þ) | 2,280 | 2,354 | ||||
Series A Class A | Cloud Crane LLC | ||||||
3.650% due 06/15/28 | 290 | 291 | 10.125% due 08/01/24 (Þ) | 450 | 480 | ||
American Airlines Pass-Through Trust | CoBank ACB | ||||||
Series 2017-1B Class B | Series I | ||||||
4.950% due 02/15/25 | 555 | 566 | 6.250% due 12/29/49 (ƒ) | 1,080 | 1,177 | ||
American Tire Distributors, Inc. | Conduent Finance, Inc. / Xerox Business | ||||||
10.250% due 03/01/22 (Þ) | 3,820 | 3,920 | Services LLC | ||||
10.500% due 12/15/24 (Þ) | 1,130 | 1,311 | |||||
Arconic, Inc. | Constellation Brands, Inc. | ||||||
5.400% due 04/15/21 | 665 | 713 | 3.875% due 11/14/23 | 125 | 126 | ||
Avis Budget Car Rental LLC / Avis | Constellis Holdings LLC / Constellis | ||||||
Budget Finance, Inc. | |||||||
6.375% due 04/01/24 (Þ) | 475 | 474 | Finance Corp. | ||||
9.750% due 05/15/20 (Þ) | 500 | 538 | |||||
Bank of America Corp. | Continental Resources, Inc. | ||||||
3.248% due 10/21/27 | 600 | 577 | 5.000% due 09/15/22 | 420 | 424 | ||
4.244% due 04/24/38 | 430 | 431 | Crown Americas LLC / Crown Americas | ||||
Series DD | Capital Corp. V | ||||||
6.300% due 12/29/49 (ƒ) | 355 | 391 | 4.250% due 09/30/26 (Þ) | 475 | 466 | ||
Series X | Crown Castle International Corp. | ||||||
6.250% due 09/29/49 (ƒ) | 220 | 236 | 4.750% due 05/15/47 | 275 | 276 | ||
Series Z | CSC Holdings LLC | ||||||
6.500% due 12/31/49 (ƒ) | 725 | 806 | 5.500% due 04/15/27 (Þ) | 1,000 | 1,034 | ||
BCD Acquisition, Inc. | Delta Air Lines Pass-Through Trust | ||||||
9.625% due 09/15/23 (Þ) | 880 | 948 | Series 15-1 Class B | ||||
Boardwalk Pipelines LP | 4.250% due 07/30/23 | 81 | 83 | ||||
5.950% due 06/01/26 | 505 | 565 | Delta Air Lines, Inc. | ||||
Brixmor Operating Partnership, LP | 3.625% due 03/15/22 | 1,140 | 1,170 | ||||
3.875% due 08/15/22 | 845 | 868 | Diamond 1 Finance Corp. / Diamond 2 | ||||
Broadcom Corp. / Broadcom Cayman | Finance Corp | ||||||
Finance, Ltd. | 5.875% due 06/15/21 (Þ) | 72 | 76 | ||||
3.875% due 01/15/27 (Þ) | 430 | 436 | 7.125% due 06/15/24 (Þ) | 51 | 56 | ||
BWAY Holding Co. | Discover Financial Services | ||||||
5.500% due 04/15/24 (Þ) | 349 | 353 | 4.100% due 02/09/27 | 720 | 724 | ||
Carpenter Technology Corp. | Dresdner Funding Trust I | ||||||
4.450% due 03/01/23 | 395 | 403 | 8.151% due 06/30/31 (Þ) | 300 | 356 | ||
CBS Radio, Inc. | Dynegy, Inc. | ||||||
7.250% due 11/01/24 (Þ) | 475 | 517 | 7.625% due 11/01/24 | 1,400 | 1,281 | ||
Cedar Fair LP/Canada's Wonderland | Enbridge Energy Partners, LP | ||||||
Co./Magnum Management | 7.375% due 10/15/45 | 460 | 589 | ||||
Corp./Mellennium Operations LLC | EnLink Midstream Partners, LP | ||||||
5.375% due 04/15/27 (Þ) | 115 | 119 | 2.700% due 04/01/19 | 710 | 711 | ||
Centene Corp. | Enviva Partners, LP / Enviva Partners | ||||||
4.750% due 01/15/25 | 136 | 138 | Finance Corp. | ||||
Century Aluminum Co. | 8.500% due 11/01/21 (Þ) | 1,190 | 1,261 | ||||
7.500% due 06/01/21 (Å) | 5,450 | 5,512 | Essex Portfolio LP | ||||
CenturyLink, Inc. | 3.625% due 05/01/27 | 695 | 692 | ||||
Series W | Express Scripts Holding Co. | ||||||
6.750% due 12/01/23 | 1,620 | 1,735 | 3.000% due 07/15/23 | 890 | 875 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 613
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
FBM Finance, Inc. | 6.750% due 11/15/21 (Þ) | 1,530 | 1,599 | ||||
8.250% due 08/15/21 (Þ) | 1,460 | 1,575 | 10.250% due 11/15/22 (Þ) | 850 | 921 | ||
Federal Realty Investment Trust | Jones Energy Holdings LLC / Jones | ||||||
2.550% due 01/15/21 | 575 | 577 | Energy Finance Corp. | ||||
Foresight Energy LLC / Foresight Energy | 6.750% due 04/01/22 | 340 | 286 | ||||
Finance Corp. | 9.250% due 03/15/23 | 450 | 410 | ||||
11.500% due 04/01/23 (Þ) | 4,770 | 4,520 | Joseph T Ryerson & Son, Inc. | ||||
Fortress Transportation and | 11.000% due 05/15/22 (Þ) | 1,380 | 1,558 | ||||
Infrastructure Investors LLC | JPMorgan Chase & Co. | ||||||
6.750% due 03/15/22 (Þ) | 1,720 | 1,703 | 2.383% due 10/24/23 (Ê) | 1,110 | 1,129 | ||
Forum Energy Technologies, Inc. | Series 1 | ||||||
6.250% due 10/01/21 | 1,260 | 1,251 | 7.900% due 04/29/49 (ƒ) | 1,350 | 1,411 | ||
Gartner, Inc. | Series S | ||||||
5.125% due 04/01/25 (Þ) | 236 | 244 | 6.750% due 01/29/49 (ƒ) | 1,200 | 1,354 | ||
General Electric Co. | Series Z | ||||||
Series D | 5.300% due 12/29/49 (ƒ) | 900 | 938 | ||||
5.000% due 12/29/49 (ƒ) | 2,006 | 2,116 | Krayton Polymars LLC / Krayton | ||||
Genesys Telecommunications | Polymars Capital Co. | ||||||
Laboratories, Inc./Greeneden Lux 3 | 7.000% due 04/15/25 (Þ) | 59 | 62 | ||||
Sarl/Greeneden US Ho | Land O'Lakes, Inc. | ||||||
10.000% due 11/30/24 (Þ) | 553 | 613 | Series 144a | ||||
Goldman Sachs Group, Inc. (The) | 7.250% due 12/31/99 (ƒ)(Þ) | 650 | 658 | ||||
2.277% due 04/26/22 (Ê) | 845 | 850 | Level 3 Financing, Inc. | ||||
Series L | 3.304% due 02/22/24 (Ê) | 1,500 | 1,504 | ||||
5.700% due 12/31/49 (ƒ) | 825 | 852 | Liberty Mutual Group, Inc. | ||||
Goodyear Tire & Rubber Co. | 7.800% due 03/15/37 (Þ) | 936 | 1,083 | ||||
4.875% due 03/15/27 | 250 | 250 | Lions Gate Entertainment Corp. | ||||
Gray Television, Inc. | 5.875% due 11/01/24 (Þ) | 137 | 142 | ||||
5.125% due 10/15/24 (Þ) | 475 | 476 | Match Group, Inc. | ||||
GTT Escrow Corp. | 6.375% due 06/01/24 | 152 | 165 | ||||
7.875% due 12/31/24 (Þ) | 1,150 | 1,199 | Mercer International, Inc. | ||||
Hartford Financial Services Group, Inc. | 6.500% due 02/01/24 (Þ) | 1,180 | 1,218 | ||||
8.125% due 06/15/38 | 275 | 291 | MetLife Capital Trust IV | ||||
Hexion, Inc. | 7.875% due 12/15/37 (Þ) | 1,525 | 1,945 | ||||
6.625% due 04/15/20 | 3,700 | 3,497 | MetLife, Inc. | ||||
High Ridge Brands Co. | 9.250% due 04/08/38 (Þ) | 500 | 719 | ||||
8.875% due 03/15/25 (Þ) | 1,400 | 1,463 | 10.750% due 08/01/39 | 200 | 320 | ||
HRG Group, Inc. | |||||||
Series C | |||||||
7.750% due 01/15/22 | 4,650 | 4,912 | 5.250% due 12/29/49 (ƒ) | 626 | 650 | ||
IASIS Healthcare LLC / IASIS Capital | |||||||
Corp. | Nabors Industries, Inc. | ||||||
8.375% due 05/15/19 | 1,520 | 1,482 | 5.500% due 01/15/23 (Þ) | 410 | 415 | ||
Icahn Enterprises LP / Icahn Enterprises | National Rural Utilities Cooperative | ||||||
Finance Corp. | Finance Corp. | ||||||
6.250% due 02/01/22 (Þ) | 130 | 135 | 5.250% due 04/20/46 | 286 | 298 | ||
6.750% due 02/01/24 (Þ) | 130 | 136 | Nexstar Escrow Corp. | ||||
International Wire Group, Inc. | 5.625% due 08/01/24 (Þ) | 475 | 487 | ||||
10.750% due 08/01/21 (Þ) | 1,300 | 1,274 | ONEOK, Inc. | ||||
inVentiv Group Holdings, Inc./inVentiv | 4.250% due 02/01/22 | 605 | 626 | ||||
Health Inc/inVentiv Health Clinical | Opal Acquisition, Inc. | ||||||
Inc | 8.875% due 12/15/21 (Þ) | 5,110 | 4,688 | ||||
7.500% due 10/01/24 (Þ) | 2,360 | 2,437 | Optimas OE Solutions Holding LLC / | ||||
Iron Mountain US Holdings, Inc. | Optimas OE Solutions, Inc. | ||||||
5.375% due 06/01/26 (Þ) | 101 | 103 | 8.625% due 06/01/21 (Þ) | 3,120 | 2,948 | ||
Iron Mountain, Inc. | Pattern Energy Group, Inc. | ||||||
4.375% due 06/01/21 (Þ) | 101 | 105 | 5.875% due 02/01/24 (Þ) | 131 | 134 | ||
Jack Ohio Finance LLC / Jack Ohio | Penn National Gaming, Inc. | ||||||
Finance 1 Corp. | 5.625% due 01/15/27 (Þ) | 130 | 131 |
See accompanying notes which are an integral part of the financial statements.
614 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Pinnacle Entertainment, Inc. | 6.375% due 06/15/26 | 3,440 | 3,466 | ||||
5.625% due 05/01/24 (Þ) | 475 | 490 | USIS Merger Sub, Inc. | ||||
Platform Specialty Products Corp. | 6.875% due 05/01/25 (Þ) | 1,970 | 2,004 | ||||
6.500% due 02/01/22 (Þ) | 2,120 | 2,173 | Vertiv Group Corp. | ||||
PNC Financial Services Group, Inc. | 9.250% due 10/15/24 (Þ) | 935 | 1,004 | ||||
(The) | Viacom, Inc. | ||||||
6.750% due 12/31/49 (ƒ) | 850 | 959 | 5.875% due 02/28/57 | 430 | 444 | ||
Prudential Financial, Inc. | Vizient, Inc. | ||||||
8.875% due 06/15/38 | 300 | 320 | 10.375% due 03/01/24 (Þ) | 2,930 | 3,355 | ||
5.625% due 06/15/43 | 1,466 | 1,600 | Voya Financial, Inc. | ||||
5.200% due 03/15/44 | 700 | 728 | 5.650% due 05/15/53 | 650 | 671 | ||
QCP SNF West/Central/East REIT LLC | WEA Finance LLC / Westfield UK & | ||||||
8.125% due 11/01/23 (Þ) | 450 | 470 | Europe Finance PLC | ||||
Rackspace Hosting, Inc. Term Loan B | 3.250% due 10/05/20 (Þ) | 555 | 567 | ||||
4.500% due 10/26/23 (Ê) | 998 | 1,004 | Wells Fargo & Co. | ||||
Radio One, Inc. | Series K | ||||||
7.375% due 04/15/22 (Þ) | 475 | 496 | 7.980% due 03/29/49 (ƒ) | 1,103 | 1,154 | ||
Real Alloy Holding, Inc. | Series U | ||||||
10.000% due 01/15/19 (Þ) | 2,510 | 2,529 | 5.875% due 12/31/49 (ƒ) | 575 | 624 | ||
RegionalCare Hospital Partners | Wells Fargo Capital X | ||||||
Holdings, Inc. | 5.950% due 12/15/36 | 540 | 583 | ||||
8.250% due 05/01/23 (Þ) | 3,690 | 3,926 | WESCO Distribution, Inc. | ||||
RP Crown Parent LLC | 5.375% due 06/15/24 | 238 | 245 | ||||
7.375% due 10/15/24 (Þ) | 2,624 | 2,742 | Western Gas Partners, LP | ||||
Sabine Pass Liquefaction LLC | 5.450% due 04/01/44 | 410 | 427 | ||||
5.750% due 05/15/24 | 1,420 | 1,570 | Williams Partners LP | ||||
SBA Tower Trust | 4.500% due 11/15/23 | 410 | 433 | ||||
3.168% due 04/15/22 (Þ) | 1,100 | 1,104 | Xerium Technologies, Inc. | ||||
Scientific Games International, Inc. | 9.500% due 08/15/21 | 920 | 955 | ||||
5.037% due 10/01/21 (Ê) | 2,329 | 2,363 | Zayo Group LLC / Zayo Capital, Inc. | ||||
SESI LLC | 5.750% due 01/15/27 (Þ) | 324 | 344 | ||||
7.125% due 12/15/21 | 400 | 404 | |||||
Simmons Foods, Inc. | 149,545 | ||||||
7.875% due 10/01/21 (Þ) | 1,220 | 1,296 | International Debt - 8.3% | ||||
1011778 B.C. Unlimited Liability Co. | |||||||
Solera LLC / Solera Finance, Inc. | 1st Lien Term Loan B | ||||||
10.500% due 03/01/24 (Þ) | 200 | 228 | 3.302% due 02/17/24 (Ê) | 1,287 | 1,288 | ||
Southern California Edison Co. | 1011778 B.C. Unlimited Liability Co. | ||||||
Series E | 1st Lien Term Loan B4 | ||||||
6.250% due 08/29/49 (ƒ) | 750 | 833 | 3.250% due 02/17/24 | 1,899 | 1,899 | ||
Southern Co. | Accudyne Industries Borrower / | ||||||
Accudyne Industries LLC | |||||||
2.950% due 07/01/23 | 285 | 284 | 7.750% due 12/15/20 (Þ) | 3,290 | 3,298 | ||
State Street Corp. | Adani Ports and Special Economic Zone, | ||||||
Series F | Ltd. | ||||||
5.250% due 12/29/49 (ƒ) | 200 | 210 | Series REGS | ||||
Surgery Center Holdings, Inc. | 3.500% due 07/29/20 | 830 | 836 | ||||
8.875% due 04/15/21 (Þ) | 970 | 1,031 | Alibaba Group Holding, Ltd. | ||||
Tempo Acquisition LLC | Series WI | ||||||
6.750% due 06/01/25 (Þ) | 590 | 606 | 3.600% due 11/28/24 | 1,090 | 1,107 | ||
Tenet Healthcare Corp. | Aquarius & Investments PLC for Swiss | ||||||
6.750% due 06/15/23 | 5,390 | 5,148 | Reinsurance Co., Ltd. | ||||
The Southern Co. | 8.250% due 09/29/49 (ƒ) | 1,050 | 1,125 | ||||
Australia & New Zealand Banking | |||||||
Series B | Group, Ltd. - ADR | ||||||
5.500% due 03/15/57 | 400 | 414 | 6.750% due 12/31/49 (ƒ)(Þ) | 600 | 665 | ||
Time Warner Cable LLC | AXA SA | ||||||
6.550% due 05/01/37 | 1,245 | 1,447 | 6.463% due 12/14/18 (ƒ)(Þ) | 350 | 352 | ||
TransDigm, Inc. | Banco Bilbao Vizcaya Argentaria SA |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 615
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
9.000% due 05/29/49 (ƒ) | 400 | 422 | Fukoku Mutual Life Insurance Co. | ||||
Barclays Bank | 5.000% due 12/29/49 (ƒ) | 600 | 616 | ||||
5.200% due 05/12/26 | 555 | 576 | Ghana Government International Bond | ||||
Barclays PLC | Series REGS | ||||||
7.875% due 12/31/49 (ƒ) | 600 | 644 | 7.875% due 08/07/23 | 25 | 25 | ||
8.250% due 12/31/49 (ƒ) | 800 | 851 | Goldman Sachs Group, Inc. (The) | ||||
BBVA Bancomer SA | 5.500% due 10/12/21 | 400 | 600 | ||||
Series REGS | Harbourview CLO VII, Ltd. | ||||||
6.500% due 03/10/21 | 395 | 432 | Series 2014-7A Class E | ||||
BHP Billiton Finance USA, Ltd. | 6.039% due 11/18/26 (Ê)(Þ) | 963 | 908 | ||||
6.750% due 10/19/75 (Þ) | 1,450 | 1,642 | HSBC Capital Funding, LP | ||||
BNP Paribas SA | 10.176% due 12/29/49 (ƒ)(Þ) | 600 | 921 | ||||
7.625% due 12/29/49 (ƒ)(Þ) | 800 | 869 | HSBC Holdings PLC | ||||
7.195% due 12/31/49 (ƒ)(Þ) | 200 | 223 | 6.375% due 12/31/49 (ƒ) | 200 | 209 | ||
Braskem Finance, Ltd. | 6.875% due 12/31/49 (ƒ) | 1,000 | 1,083 | ||||
Series REGS | Hyperion Insurance Group, Ltd. Term | ||||||
5.750% due 04/15/21 | 420 | 441 | Loan B | ||||
Cooperatieve Rabobank UA | 5.500% due 04/29/22 (Ê) | 1,244 | 1,246 | ||||
11.000% due 06/29/49 (ƒ)(Þ) | 1,275 | 1,489 | ING Groep NV | ||||
CRCC Yupeng, Ltd. | 2.302% due 03/29/22 (Ê) | 285 | 287 | ||||
3.950% due 02/28/49 (ƒ) | 695 | 708 | 6.875% due 12/29/49 (ƒ) | 400 | 425 | ||
International Automotive Components | |||||||
Credit Agricole SA | Group SA | ||||||
8.125% due 12/31/49 (ƒ)(Þ) | 800 | 883 | 9.125% due 06/01/18 (Þ) | 2,037 | 1,981 | ||
Credit Suisse Group AG | Kazakhstan Government International | ||||||
7.125% due 12/29/49 (ƒ) | 600 | 635 | Bond | ||||
7.500% due 12/31/49 (ƒ)(Þ) | 200 | 222 | Series REGS | ||||
CSCEC Finance (Cayman) II Co. | 3.875% due 10/14/24 | 140 | 142 | ||||
2.700% due 06/14/21 | 505 | 501 | Korea Development Bank | ||||
Dai-ichi Life Insurance Co., Ltd. (The) | 1.757% due 02/27/22 (Ê) | 1,140 | 1,139 | ||||
7.250% due 12/29/49 (ƒ)(Þ) | 1,150 | 1,317 | La Mondiale SAM | ||||
4.000% due 12/31/49 (ƒ)(Þ) | 800 | 782 | 5.875% due 01/26/47 | 400 | 417 | ||
Danske Bank A/S | Legal & General Group PLC | ||||||
6.125% due 12/31/99 (ƒ) | 400 | 410 | Series EMTn | ||||
Delta 2 Lux Sarl Term Loan B3 | 5.250% due 03/21/47 | 400 | 414 | ||||
4.750% due 07/30/21 (Ê) | 3,250 | 3,253 | Lithuania Government International | ||||
Demeter Investments BV for Swiss Re, | Bond | ||||||
Ltd. | Series REGS | ||||||
5.625% due 08/15/52 | 550 | 575 | 7.375% due 02/11/20 | 375 | 427 | ||
DNB Bank ASA | Lloyds Banking Group PLC | ||||||
6.500% due 12/29/49 (ƒ) | 200 | 213 | 7.500% due 12/31/49 (ƒ) | 400 | 431 | ||
Emera, Inc. | Macquarie Bank, Ltd. | ||||||
Series 16-A | 6.125% due 12/31/99 (ƒ)(Þ) | 400 | 407 | ||||
6.750% due 06/15/76 | 1,907 | 2,100 | Mallinckrodt International Finance SA / | ||||
Enbridge Inc. | Mallinckrodt CB LLC | ||||||
5.625% due 10/15/23 (Þ) | 250 | 239 | |||||
Series 16-A | |||||||
6.000% due 01/15/77 | 300 | 306 | MEG Energy Corp. | ||||
Enel SpA | 6.375% due 01/30/23 (Þ) | 670 | 590 | ||||
8.750% due 09/24/73 (Þ) | 1,500 | 1,755 | 7.000% due 03/31/24 (Þ) | 1,960 | 1,749 | ||
Evergreen Skills Lux Sarl | MidOcean Credit CLO III | ||||||
5.750% due 04/28/21 (Ê) | 4,171 | 3,896 | Series 2014-3A Class E | ||||
9.250% due 04/28/22 (Ê) | 2,070 | 1,545 | 5.947% due 07/21/26 (Ê)(Þ) | 825 | 786 | ||
FMG Resources August 2006 Pty, Ltd. | Mood Media Corp. Term Loan | ||||||
9.750% due 03/01/22 (Þ) | 615 | 708 | 7.000% due 05/01/19 (Ê) | 1,118 | 1,117 | ||
FMG Resources Pty, Ltd. Covenant-Lite | Morgan Stanley | ||||||
1st Lien Term Loan B | Series GMTN | ||||||
3.750% due 06/30/19 | 664 | 668 | 2.625% due 03/09/27 | 710 | 927 |
See accompanying notes which are an integral part of the financial statements.
616 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
MPT Operating Partnership, LP / MPT | Travelport Finance (Luxembourg) Sarl | ||||||
Finance Corp. | 1st Lien Term Loan C | ||||||
4.000% due 08/19/22 | 485 | 580 | 4.265% due 09/02/21 (Ê) | 1,214 | 1,222 | ||
MTN (Mauritius) Investment, Ltd. | UBS Group AG | ||||||
Series REGS | 7.125% due 12/29/49 (ƒ) | 400 | 425 | ||||
6.500% due 10/13/26 | 510 | 524 | Series . | ||||
Nationwide Building Society | 7.125% due 12/29/49 (ƒ) | 400 | 429 | ||||
4.000% due 09/14/26 (Þ) | 585 | 579 | UBS Group Funding Switzerland AG | ||||
Nippon Life Insurance Co. | 3.491% due 05/23/23 (Þ) | 1,110 | 1,127 | ||||
4.700% due 01/20/46 (Þ) | 700 | 726 | Valeant Pharmaceuticals International, | ||||
Open Text Corp. | Inc. | ||||||
5.875% due 06/01/26 (Þ) | 299 | 319 | 6.500% due 03/15/22 (Þ) | 126 | 129 | ||
Park Aerospace Holdings, Ltd. | 7.000% due 03/15/24 (Þ) | 94 | 96 | ||||
5.250% due 08/15/22 (Þ) | 237 | 250 | Want Want China Finance, Ltd. | ||||
5.500% due 02/15/24 (Þ) | 150 | 159 | 2.875% due 04/27/22 | 590 | 588 | ||
Parq Holdings, LP Term Loan | Woodside Finance, Ltd. | ||||||
8.500% due 12/17/20 (Ê) | 820 | 816 | 3.650% due 03/05/25 (Þ) | 440 | 435 | ||
Perrigo Finance Unlimited Co. | Zais CLO 5, Ltd. | ||||||
3.500% due 03/15/21 | 555 | 569 | Series 2016-2A Class C | ||||
Priceline Group, Inc. | 5.216% due 10/15/28 (Ê)(Þ) | 1,000 | 1,009 | ||||
2.375% due 09/23/24 | 1,125 | 1,315 | 77,432 | ||||
QBE Insurance Group, Ltd. | Loan Agreements - 19.0% | ||||||
6.750% due 12/02/44 | 1,100 | 1,211 | ABG Intermediate Holdings 2 LLC 1st | ||||
Lien Term Loan | |||||||
5.875% due 06/17/46 | 606 | 639 | 7.000% due 05/27/21 | 1 | 1 | ||
Ritchie Bros. Auctioneers, Inc. | ABG Intermediate Holdings 2 LLC 1st | ||||||
5.375% due 01/15/25 (Þ) | 460 | 475 | Lien Term Loan B1 | ||||
Royal Bank of Scotland Group PLC | 5.052% due 05/27/21 (Ê) | 361 | 363 | ||||
8.625% due 12/29/49 (ƒ) | 1,000 | 1,080 | ABG Intermediate Holdings 2 LLC 2nd | ||||
Shire Acquisitions Investments Ireland | Lien Term Loan | ||||||
DAC | 9.000% due 05/27/22 (Ê) | 248 | 249 | ||||
2.400% due 09/23/21 | 435 | 430 | Active Network, Inc. 1st Lien Term Loan | ||||
Southern Power Co. | 6.000% due 11/15/20 | 373 | 373 | ||||
1.850% due 06/20/26 | 390 | 428 | Advanced Disposal Services, Inc. Term | ||||
Standard Chartered PLC | Loan B3 | ||||||
7.750% due 12/29/49 (Þ) | 420 | 448 | 3.500% due 11/10/23 (Ê) | 738 | 744 | ||
Sumitomo Life Insurance Co. | Air Methods Corp. Term Loan B | ||||||
6.500% due 09/20/73 (Þ) | 200 | 229 | 4.572% due 04/05/24 | 483 | 483 | ||
Sydney Airport Finance Co. Pty, Ltd. | Alliant Holdings I, LLC Term Loan B2 | ||||||
8.250% due 08/01/23 (Þ) | 2,780 | 2,968 | |||||
Series REGS | Alliant Holdings Intermediate LLC, | ||||||
3.900% due 03/22/23 | 560 | 583 | Term Loan B | ||||
Teine Energy, Ltd. | 4.416% due 08/14/22 (Ê) | 372 | 373 | ||||
6.875% due 09/30/22 (Þ) | 580 | 592 | Altice US Finance I Corp. Term Loan B | ||||
Teva Pharmaceutical Finance | 3.908% due 07/14/25 | 750 | 749 | ||||
Netherlands III BV | Alvogen Pharmaceutical US, Inc. Term | ||||||
2.800% due 07/21/23 | 765 | 737 | Loan | ||||
The Link Finance, Ltd. | 6.000% due 04/02/22 (Ê) | 1,387 | 1,378 | ||||
3.600% due 09/03/24 | 570 | 584 | American Airlines, Inc. Term Loan B | ||||
TIAA CLO I, Ltd. | 2.993% due 06/26/20 | 1,994 | 1,994 | ||||
Series 2016-1A Class E1 | 3.276% due 04/28/23 (Ê) | 248 | 248 | ||||
8.736% due 07/20/28 (Ê)(Þ) | 279 | 280 | Ancestry.com Operations, Inc. 2nd Lien | ||||
Transcanada Trust | Term Loan B | ||||||
5.625% due 05/20/75 | 375 | 392 | 9.250% due 10/19/24 | 320 | 327 | ||
Series 16-A | AP Gaming I LLC 1st Lien Term Loan B | ||||||
5.875% due 08/15/76 | 1,513 | 1,626 | 9.250% due 12/20/20 (Ê) | 494 | 497 | ||
TransCanada Trust | Arbor Pharmaceuticals, Inc. Term Loan | ||||||
5.300% due 03/15/77 | 675 | 679 | B | ||||
6.000% due 06/28/23 | 988 | 1,005 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 617
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Artic Glacier USA, Inc. Term Loan B | Capital Automotive LP 2nd Lien Term | ||||||
5.250% due 03/14/24 | 500 | 506 | Loan | ||||
AssuredPartners, Inc. Term Loan B | 7.151% due 03/24/25 (Ê) | 250 | 255 | ||||
Casablanca US Holdings, Inc. 1st Lien | |||||||
5.292% due 10/21/22 (Ê) | 497 | 500 | Term Loan | ||||
Asurion LLC 1st Lien Term Loan B4 | 5.538% due 02/21/24 (Ê) | 2,000 | 1,990 | ||||
4.250% due 08/04/22 (Ê) | 2,179 | 2,192 | Cast & Crew Payroll LLC 2nd Lien Term | ||||
Asurion LLC Term Loan 2 | Loan | ||||||
8.500% due 03/03/21 (Ê) | 2,270 | 2,303 | 8.750% due 08/03/23 (Ê) | 185 | 183 | ||
Asurion LLC Term Loan B5 | CBS Radio, Inc. Term Loan B | ||||||
4.750% due 11/01/23 (Ê) | 123 | 124 | 4.500% due 10/17/23 (Ê) | 527 | 530 | ||
Atotech BV Term Loan B1 | CCC Information Services, Inc. 1st Lien | ||||||
4.146% due 01/24/24 | 625 | 628 | Term Loan | ||||
Avantor Performance Materials LLC 1st | 4.040% due 03/29/24 | 750 | 746 | ||||
Lien Term Loan | CH Hold Corp. 1st Lien Term Loan | ||||||
5.000% due 03/07/24 | 480 | 484 | 1.500% due 02/01/24 (Ê) | 68 | 69 | ||
Avantor Performance Materials LLC 2nd | CH Hold Corp. 1st Lien Term Loan B | ||||||
Lien Term Loan | 4.000% due 02/01/24 (Ê) | 682 | 686 | ||||
9.250% due 03/07/25 | 250 | 251 | CH Hold Corp. 2nd Lien Term Loan B | ||||
Avantor Performance Materials LLC | 8.285% due 02/01/25 (Ê) | 250 | 254 | ||||
Term Loan | Change Healthcare Holdings LLC 1st | ||||||
5.000% due 03/08/24 | 20 | 20 | Lien Term Loan B | ||||
Avaya, Inc. Term Loan B7 | 3.750% due 03/01/24 (Ê) | 2,000 | 2,005 | ||||
6.314% due 05/29/20 (Ê) | 2,459 | 2,050 | Charcoal Holdings LLC 1st Lien Term | ||||
Avolon Holdings, Ltd. Term Loan B | Loan | ||||||
3.743% due 01/13/22 | 500 | 507 | 0.057% due 07/03/23 | 1,646 | 1,656 | ||
BBB Industries LLC 1st Lien Term Loan | Charming Charlie LLC Term Loan B | ||||||
6.034% due 11/03/21 (Ê) | 200 | 200 | 9.000% due 12/24/19 (Ê) | 230 | 115 | ||
Berlin Packaging LLC 2nd Lien Term | Charter Communications Operating LLC | ||||||
Loan | 1st Lien Term Loan H | ||||||
7.750% due 10/01/22 (Ê) | 1,000 | 998 | 2.997% due 01/15/22 (Ê) | 1,746 | 1,752 | ||
Berry Plastics Corp. 1st Lien Term | Checkout Holding Corp. Covenant-Lite | ||||||
Loan I | 1st Lien Term Loan B | ||||||
3.493% due 10/01/22 (Ê) | 528 | 531 | 4.500% due 04/09/21 (Ê) | 1,218 | 1,115 | ||
3.524% due 10/01/22 | 419 | 422 | Chemours Co. (The) Term Loan B | ||||
BioScrip, Inc. 1st Lien Term Loan B | 3.490% due 05/12/22 | 342 | 345 | ||||
9.250% due 07/31/20 (Å)(Ê) | 537 | 528 | Cision, Inc. Term Loan B | ||||
9.250% due 07/31/20 (Ê)(Þ) | 464 | 455 | 7.000% due 05/12/23 | 2,236 | 2,249 | ||
BioScrip, Inc. Term Loan | City Center Holdings LLC Term Loan B | ||||||
9.250% due 07/31/20 (Å)(Ê) | 896 | 880 | 3.494% due 04/07/24 | 500 | 501 | ||
9.250% due 07/31/20 (Ê)(Þ) | 773 | 759 | Commercial Barge Line Co. Term Loan | ||||
BJ's Wholesale Club, Inc. 2nd Lien Term | B1 | ||||||
Loan | 9.750% due 11/12/20 (Ê) | 843 | 765 | ||||
8.525% due 01/27/25 (Ê) | 325 | 325 | Community Health Systems, Inc. Term | ||||
Brickman Group, Ltd. LLC 1st Lien | Loan B2 | ||||||
Term Loan B | 4.000% due 01/27/21 (Ê) | 3,883 | 3,859 | ||||
4.000% due 12/18/20 (Ê) | 1,338 | 1,342 | Constellis Holdings LLC 2nd Lien Term | ||||
4.022% due 12/18/20 | 53 | 53 | Loan | ||||
6.000% due 12/18/20 | 106 | 106 | 10.156% due 04/21/25 (Ê) | 250 | 246 | ||
BWAY Holding Co. Term Loan B | Constellis Holdings LLC Term Loan B | ||||||
4.233% due 03/22/24 | 1,250 | 1,242 | 6.155% due 04/13/24 | 1,000 | 988 | ||
ConvergeOne Holdings Corp. Covenant- | |||||||
Cable One, Inc. Term Loan B | Lite 1st Lien Term Loan | ||||||
3.430% due 04/05/24 | 500 | 503 | 6.375% due 06/17/20 (Ê) | 1,244 | 1,244 | ||
Caesars Entertainment Corp. 1st Lien | Cortes NP Acquisition Corp. Term Loan | ||||||
Term Loan B | B | ||||||
7.000% due 10/11/20 (Ê) | 3,481 | 3,489 | 5.000% due 11/30/23 | 1,452 | 1,460 | ||
Capital Automotive LP 1st Lien Term | CPI Acquisition, Inc. Term Loan B | ||||||
Loan | 5.500% due 08/17/22 (Ê) | 407 | 380 | ||||
4.000% due 03/17/24 | 250 | 252 | |||||
CPM Holdings, Inc. Term Loan B |
See accompanying notes which are an integral part of the financial statements.
618 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
5.250% due 04/10/22 (Ê) | 1,038 | 1,050 | Getty Images, Inc. 1st Lien Term Loan B | ||||
Creative Artists Agency LLC 1st Lien | 4.750% due 10/18/19 (Ê) | 500 | 442 | ||||
Term Loan B | Go Daddy Operating Co. LLC 1st Lien | ||||||
4.539% due 02/13/24 (Ê) | 998 | 1,009 | Term Loan | ||||
Crosby US Acquisition Corp. 1st Lien | 3.451% due 02/06/24 (Ê) | 500 | 502 | ||||
Term Loan | Grifols Worldwide Operations USA Inc. | ||||||
4.054% due 11/22/20 (Ê) | 499 | 462 | 1st Lien Term Loan B | ||||
CSC Holdings LLC 1st Lien Term Loan | 3.285% due 01/31/25 (Ê) | 313 | 313 | ||||
3.244% due 07/09/25 | 1,839 | 1,837 | Gruden Acquisition, Inc. 1st Lien Term | ||||
Cvent, Inc. 1st Lien Term Loan B | Loan | ||||||
6.064% due 11/29/23 (Ê) | 500 | 503 | 5.802% due 08/18/22 (Ê) | 1,496 | 1,446 | ||
Dell International LLC 1st Lien Term | Harland Clarke Holdings Corp. Term | ||||||
Loan B | Loan B6 | ||||||
3.609% due 09/07/23 (Ê) | 2,488 | 2,496 | 6.646% due 02/02/22 | 1,332 | 1,333 | ||
Hawaiian Telcom Communications, Inc. | |||||||
Delta 2 Lux Sarl 2nd Lien Term Loan | Term Loan B | ||||||
7.750% due 07/29/22 (Ê) | 2,338 | 2,358 | 5.250% due 06/06/19 (Ê) | 165 | 165 | ||
DigitalGlobe, Inc. 1st Lien Term Loan B | HCA, Inc. Term Loan B8 | ||||||
3.530% due 12/22/23 (Ê) | 1,995 | 2,002 | 3.243% due 02/15/24 | 1,995 | 2,014 | ||
EagleView Technology Corp. 1st Lien | Heartland Dental LLC 2nd Lien Term | ||||||
Term Loan | Loan | ||||||
5.280% due 07/15/22 (Ê) | 497 | 497 | 9.750% due 06/21/19 (Ê) | 780 | 772 | ||
EagleView Technology Corp. 2nd Lien | Hilton Worldwide Finance LLC Term | ||||||
Term Loan | Loan B2 | ||||||
9.250% due 09/28/23 (Ê) | 500 | 496 | 3.034% due 10/25/23 (Ê) | 2,244 | 2,263 | ||
Eastman Kodak Co. Exit Term Loan | Indigo Merger Sub I, Inc. 1st Lien Term | ||||||
7.250% due 09/03/19 (Ê) | 1,743 | 1,746 | Loan | ||||
Eldorado Resorts LLC Term Loan B | 5.000% due 07/08/21 (Ê) | 248 | 250 | ||||
3.197% due 03/13/24 | 500 | 499 | Intrawest Operations Group LLC Term | ||||
EnergySolutions LLC 1st Lien Term | Loan B1 | ||||||
Loan B | 4.500% due 12/09/20 (Ê) | 994 | 998 | ||||
6.814% due 05/29/20 (Ê) | 2,158 | 2,180 | J Crew Group, Inc. Term Loan B | ||||
Envision Healthcare Corp. Term Loan B | 4.000% due 03/05/21 (Ê) | 46 | 30 | ||||
4.000% due 11/17/23 (Ê) | 499 | 503 | 4.147% due 03/05/21 | 52 | 34 | ||
Epic Health Services, Inc. 1st Term Loan | Koosharem LLC Exit Term Loan | ||||||
5.290% due 03/28/24 | 133 | 134 | 7.500% due 05/16/20 (Ê) | 490 | 454 | ||
5.305% due 03/28/24 | 67 | 67 | KRATON Polymers LLC 1st Lien Term | ||||
ESH Hospitality, Inc. Term Loan B | Loan B | ||||||
3.539% due 08/30/23 (Ê) | 995 | 1,000 | 5.000% due 01/06/22 (Ê) | 1,265 | 1,282 | ||
Fairmount Santrol, Inc. 1st Lien Term | Landry's, Inc. 1st Lien Term Loan | ||||||
Loan B2 | 5.750% due 09/22/23 (Ê) | 617 | 618 | ||||
4.500% due 09/05/19 (Ê) | 1,429 | 1,404 | Lannett Co., Inc. Term Loan A | ||||
First Data Corp. Term Loan | 5.750% due 11/25/20 (Ê) | 1,202 | 1,190 | ||||
3.775% due 07/10/22 (Ê) | 2,099 | 2,110 | Learfield Communications, Inc. 1st Lien | ||||
FPC Holdings, Inc. 1st Lien Term Loan | Term Loan | ||||||
5.250% due 11/27/19 (Ê) | 2,061 | 1,965 | 4.250% due 11/17/23 | 748 | 754 | ||
FullBeauty Brands Holding Corp. 2nd | Lions Gate Enterntainment, Inc. 1st Lien | ||||||
Term Loan | |||||||
Lien Term Loan | 3.766% due 10/12/23 | 200 | 201 | ||||
10.000% due 09/22/23 | 250 | 151 | |||||
FullBeauty Brands Holdings Corp. 1st | Lux Finco Sarl Term Loan B1 | ||||||
Lien Term Loan | 1.000% due 10/16/23 (v) | 310 | 307 | ||||
5.750% due 10/14/22 (Ê) | 619 | 478 | MacDermid, Inc. Term Loan B6 | ||||
Gartner, Inc. Term Loan B | 4.000% due 06/07/23 | 500 | 502 | ||||
2.992% due 03/14/24 | 1,000 | 1,007 | Masergy Communications, Inc. 2nd Lien | ||||
GENEX Services, Inc. 1st Lien Term | Term Loan | ||||||
Loan | 9.500% due 12/15/24 (Ê) | 1,700 | 1,717 | ||||
5.250% due 05/30/21 (Ê) | 992 | 997 | Match Group, Inc. Term Loan B1 | ||||
Genoa, a QoL Healthcare Co. LLC 2nd | 5.500% due 10/27/22 (Ê) | 538 | 544 | ||||
Lien Term Loan | MCC Iowa LLC Term Loan H | ||||||
9.000% due 10/28/24 (Ê) | 2,040 | 2,050 | 3.250% due 01/29/21 (Ê) | 490 | 492 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 619
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) | Value | Amount ($) | Value | ||||
or Shares | $ | or Shares | $ | ||||
Mergermarket USA, Inc. 1st Lien Term | Prime Security Services Borrower LLC | ||||||
Loan | Term Loan B1 | ||||||
4.500% due 02/04/21 (Ê) | 1,315 | 1,315 | 4.250% due 05/02/22 (Ê) | 1,020 | 1,030 | ||
4.647% due 02/04/21 | 26 | 26 | Project Alpha Intermediate Holding, Inc. | ||||
MGM Growth Properties, LLC 1st Lien | Term Loan B | ||||||
Term Loan B | 4.750% due 04/18/24 | 1,000 | 995 | ||||
4.000% due 04/25/23 (Ê) | 992 | 994 | Prowler Acquisition Corp. 1St Lien Term | ||||
Mission Broadcasting, Inc. 1st Lien Term | Loan | ||||||
Loan B | 5.672% due 01/28/20 (Ê) | 499 | 399 | ||||
3.767% due 01/17/24 (Ê) | 67 | 68 | Quest Software US Holdings, Inc. Term | ||||
MRI Software LLC Term Loan | Loan B | ||||||
5.250% due 06/18/21 | 362 | 358 | 7.035% due 10/31/22 (Ê) | 1,247 | 1,267 | ||
0.500% due 09/29/23 | 136 | 135 | Quincy Newspapers, Inc. Term Loan B | ||||
Nautilus Merger Sub, Inc. 2nd Lien Term | 5.000% due 11/02/22 (Ê) | 924 | 932 | ||||
Loan | 7.000% due 11/02/22 | 7 | 7 | ||||
6.750% due 03/13/22 (Ê) | 1,280 | 1,240 | Radio One, Inc. 1st Lien Term Loan B | ||||
Navistar, Inc. 1st Lien Term Loan B | 5.152% due 04/05/23 (Ê) | 500 | 497 | ||||
5.038% due 08/07/20 (Ê) | 247 | 250 | RentPath, Inc. 1st Lien Term Loan | ||||
New Asurion Corp. Term Loan B | 6.250% due 12/17/21 (Ê) | 980 | 967 | ||||
4.795% due 08/10/21 | 1,420 | 1,475 | Reynolds Group Holdings, Inc. 1st Lien | ||||
New Millennium Holding Co., Inc. Exit | Term Loan B | ||||||
Term Loan | 4.032% due 02/05/23 (Ê) | 498 | 500 | ||||
7.500% due 12/21/20 (Ê) | 82 | 44 | Riverbed Technology, Inc. Term Loan | ||||
Nexstar Broadcasting, Inc. 1st Lien Term | 5.000% due 04/27/22 (Ê) | 1,981 | 1,976 | ||||
Loan B | Royal Holdings, Inc. Term Loan | ||||||
3.767% due 01/17/24 (Ê) | 217 | 219 | 8.500% due 06/19/23 (Ê) | 215 | 215 | ||
Nielsen Finance LLC Term Loan B4 | RPI Finance Trust Term Loan B6 | ||||||
2.990% due 10/24/23 | 500 | 502 | 3.152% due 03/07/23 | 572 | 574 | ||
NN, Inc. Term Loan | SCS Holdings, Inc. Term Loan | ||||||
4.733% due 03/22/21 | 500 | 500 | 5.250% due 10/30/22 (Ê) | 477 | 481 | ||
NPC International, Inc. 1st Lien Term | SeaWorld Parks & Entertainment, Inc. | ||||||
Loan | Incremental Term Loan B3 | ||||||
4.500% due 03/17/24 | 450 | 454 | 4.000% due 05/14/20 (Ê) | 3,908 | 3,909 | ||
NVA Holdings, Inc. 2nd Lien Term Loan | SESAC Holdco II LLC 2nd Lien Term | ||||||
8.000% due 08/14/22 (Ê) | 170 | 172 | Loan | ||||
Opal Acquisition, Inc. 1st Lien Term | 8.303% due 02/10/25 | 500 | 500 | ||||
Loan B | Signode Industrial Group US, Inc. 1st | ||||||
5.000% due 11/27/20 (Ê) | 1,531 | 1,439 | Lien Term Loan B | ||||
Optiv, Inc. 1st Lien Term Loan | 4.000% due 05/01/21 (Ê) | 929 | 932 | ||||
4.285% due 02/01/24 (Ê) | 500 | 499 | Signode Industrial Group US, Inc. Term | ||||
Patterson Co. 2nd Lien Term Loan | Loan B | ||||||
8.750% due 08/28/23 (Å)(Ê) | 590 | 575 | 3.897% due 05/01/21 | 715 | 717 | ||
Penn National Gaming, Inc. 1st Lien | SIRVA Worldwide, Inc. Term Loan | ||||||
Term Loan B | 7.656% due 11/14/22 | 499 | 496 | ||||
3.541% due 01/19/24 (Ê) | 500 | 503 | Solarwinds Holdings, Inc. 1st Lien Term | ||||
PFS Acquisition LLC 2nd Lien Term | Loan | ||||||
Loan | 4.553% due 02/05/23 (Ê) | 2,381 | 2,392 | ||||
8.250% due 01/31/22 (Ê) | 1,890 | 1,777 | Solera LLC Term Loan B | ||||
Pharmaceutical Product Development | 5.750% due 03/04/23 (Ê) | 1,226 | 1,234 | ||||
LLC Term Loan B | SourceHOV LLC 1st Lien Term Loan B | ||||||
0.043% due 08/18/22 (Ê) | 1,244 | 1,250 | 7.750% due 10/31/19 (Ê) | 480 | 460 | ||
Playa Resorts Holding BV Term Loan B | Spectrum Brands, Inc. 1st Lien Term | ||||||
4.040% due 04/05/24 | 1,000 | 1,001 | Loan B | ||||
Portillo's Holdings, LLC Covenant-Lite | 3.152% due 06/23/22 (Ê) | 1,992 | 2,004 | ||||
1st Lien Term Loan | Sprint Communications, Inc. 1st Lien | ||||||
4.785% due 08/01/21 (Ê) | 1,489 | 1,496 | Term Loan B | ||||
Pre-Paid Legal Services, Inc. 2nd Lien | 3.500% due 01/13/24 | 3,000 | 3,002 | ||||
Term Loan | Station Casinos LLC 1st Lien Term | ||||||
9.750% due 07/01/20 (Ê) | 250 | 249 | Loan B | ||||
3.534% due 06/08/23 (Ê) | 374 | 374 |
See accompanying notes which are an integral part of the financial statements.
620 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Steak n Shake Operations, Inc. Term | Vouvray US Finance LLC Term Loan B | |||||||
Loan B1 | 4.176% due 01/27/24 | 1,000 | 999 | |||||
4.750% due 03/19/21 (Ê) | 499 | 497 | Wastequip LLC Term Loan | |||||
Sterigenics-Nordion Holdings LLC Term | ||||||||
Loan B | 5.500% due 08/09/19 (Ê) | 709 | 708 | |||||
4.149% due 03/23/22 | 1,239 | 1,236 | William Morris Endeavor Entertainment | |||||
Sterling Midco Holdings, Inc. 2nd Lien | LLC 1st Lien Term Loan | |||||||
Term Loan | 4.250% due 05/06/21 | 3,461 | 3,479 | |||||
8.750% due 06/19/23 (Ê) | 710 | 692 | 5.290% due 05/06/21 (Ê) | 8 | 8 | |||
Talbots, Inc. (The) 1st Lien Term Loan | World Endurance Holdings 1st Lien | |||||||
Term Loan | ||||||||
5.500% due 03/17/20 (Ê) | 104 | 93 | 5.401% due 06/26/21 (Ê) | 1,367 | 1,360 | |||
TCH-2 Holdings LLC 1st Lien Term | ||||||||
Loan | Zebra Technologies Corp. Term Loan B | |||||||
5.536% due 05/12/21 (Ê) | 1,142 | 1,150 | 4.750% due 10/27/21 (Ê) | 1,393 | 1,406 | |||
Tempo Acquisition LLC Term Loan | 177,742 | |||||||
3.995% due 03/15/24 | 500 | 500 | Mortgage-Backed Securities - 8.1% | |||||
TerraForm AP Acquisition Holdings LLC | Fannie Mae | |||||||
Term Loan B | 30 Year TBA(Ï) | |||||||
8.500% due 06/26/22 (Ê) | 1,087 | 1,098 | 3.000% | 7,000 | 6,990 | |||
The Nature's Bounty Co. 1st Lien Term | 3.500% | 1,000 | 830 | |||||
Loan B | ||||||||
4.537% due 05/05/23 (Ê) | 493 | 494 | 4.000% | 11,000 | 11,585 | |||
TKC Holdings, Inc. 1st Lien Term Loan | 4.500% | 3,000 | 3,228 | |||||
4.785% due 02/01/23 (Ê) | 500 | 505 | Series 2013-304 Class C22 | |||||
TKC Holdings, Inc. 2nd Lien Term Loan | Interest Only STRIP | |||||||
8.523% due 02/01/24 (Ê) | 250 | 252 | 3.500% due 12/15/42 | 5,173 | 1,028 | |||
TMS International Corp. Term Loan B1 | Series 2015-345 Class C13 | |||||||
4.500% due 10/16/20 (Ê) | 993 | 1,000 | Interest Only STRIP | |||||
Trader Corp. Term Loan B | 3.500% due 08/15/45 | 15,665 | 3,022 | |||||
4.290% due 09/28/23 | 1,000 | 1,002 | Fannie Mae REMICS | |||||
Trans Union LLC Term 1st Lien Loan B2 | Series 2010-35 Class SG | |||||||
3.493% due 04/09/21 (Ê) | 499 | 503 | Interest Only STRIP | |||||
Transdigm Group, Inc. 1st Lien Term | 5.418% due 04/25/40 (Ê) | 763 | 153 | |||||
Loan F | Series 2010-140 Class GS | |||||||
3.780% due 06/09/23 (Ê) | 997 | 996 | Interest Only STRIP | |||||
Tribune Co. Term Loan B | 5.222% due 07/25/39 (Ê) | 3,029 | 319 | |||||
4.039% due 01/27/24 (Ê) | 397 | 399 | Series 2011-59 Class BI | |||||
Tribune Media Co. Term Loan | Interest Only STRIP | |||||||
3.750% due 12/27/20 (Ê) | 32 | 32 | 6.000% due 08/25/40 | 3,297 | 302 | |||
TruGreen, LP 1st Lien Term Loan | Series 2011-98 Class AI | |||||||
6.500% due 04/13/23 (Ê) | 1,989 | 2,001 | Interest Only STRIP | |||||
UFC Holdings LLC 1st Lien Term Loan | 3.500% due 11/25/37 | 4,626 | 258 | |||||
5.000% due 08/18/23 (Ê) | 1,990 | 2,001 | Series 2011-101 Class SA | |||||
United Airlines, Inc. Term Loan B | Interest Only STRIP | |||||||
3.421% due 03/21/24 | 750 | 751 | 5.122% due 10/25/41 (Ê) | 3,908 | 570 | |||
US Renal Care, Inc. 2nd Lien Term Loan | Series 2012-36 Class SN | |||||||
9.000% due 11/16/23 (Ê) | 2,850 | 2,586 | Interest Only STRIP | |||||
USIC Holdings, Inc. 1st Lien Term Loan | 5.672% due 04/25/42 (Ê) | 1,663 | 283 | |||||
5.170% due 11/21/23 | 499 | 502 | Series 2012-129 Class IJ | |||||
Valeant Pharmaceuticals International, | Interest Only STRIP | |||||||
Inc. Term Loan B | 3.500% due 12/25/32 | 786 | 120 | |||||
5.000% due 04/02/22 (Ê) | 1,169 | 1,176 | Series 2012-147 Class AI | |||||
Varsity Brands, Inc. 1st Lien Term Loan | Interest Only STRIP | |||||||
5.000% due 12/11/21 | 992 | 997 | 3.000% due 10/25/27 | 4,118 | 389 | |||
Veresen Midstream, Ltd. Term Loan B2 | Series 2012-4074 Class KS | |||||||
4.606% due 03/31/22 (Ê) | 1,985 | 1,997 | ||||||
Virgin Media Bristol LLC 1st Lien Term | Interest Only STRIP | |||||||
Loan I | 5.788% due 02/15/41 (Ê) | 1,091 | 183 | |||||
3.906% due 01/31/25 (Ê) | 500 | 502 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 621
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Series 2013-27 Class PI | Series 2017-4658 Class CI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
3.000% due 12/25/41 | 4,849 | 384 | 3.500% due 07/15/40 | 1,483 | 176 | ||||
Series 2013-35 Class PI | Series 2017-4662 Class CI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
3.000% due 02/25/42 | 2,401 | 192 | 3.500% due 01/15/42 | 3,402 | 398 | ||||
Series 2013-41 Class SP | Series 2017-4666 Class AI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
5.218% due 06/25/40 (Ê) | 1,139 | 122 | 3.000% due 09/15/35 | 3,065 | 246 | ||||
Series 2013-90 Class SD | Freddie Mac REMICS | ||||||||
Interest Only STRIP | Series 2011-3852 Class SC | ||||||||
5.609% due 09/25/43 | 1,747 | 353 | Interest Only STRIP | ||||||
Series 2013-4182 Class PI | 5.656% due 04/15/40 | 2,400 | 353 | ||||||
Interest Only STRIP | Series 2011-3904 Class NI | ||||||||
3.000% due 12/15/41 | 5,741 | 470 | Interest Only STRIP | ||||||
Series 2015-55 Class IN | 3.500% due 08/15/26 | 2,959 | 285 | ||||||
Interest Only STRIP | Series 2012-3998 Class KI | ||||||||
4.500% due 08/25/45 | 1,497 | 220 | Interest Only STRIP | ||||||
Series 2015-4425 Class IO | 3.000% due 11/15/26 | 4,166 | 362 | ||||||
Interest Only STRIP | Series 2012-4077 Class IK | ||||||||
4.000% due 01/15/45 | 2,084 | 387 | Interest Only STRIP | ||||||
Series 2015-4510 Class HI | 5.000% due 07/15/42 | 2,006 | 412 | ||||||
Interest Only STRIP | Series 2012-4099 Class BI | ||||||||
3.000% due 03/15/40 | 4,610 | 431 | Interest Only STRIP | ||||||
Series 2016-24 Class CI | 3.500% due 06/15/39 | 2,423 | 242 | ||||||
Interest Only STRIP | Series 2012-4127 Class PI | ||||||||
4.000% due 02/25/46 | 2,082 | 304 | Interest Only STRIP | ||||||
Series 2016-97 Class KI | 4.500% due 07/15/42 | 1,930 | 367 | ||||||
Interest Only STRIP | Series 2014-4299 Class JI | ||||||||
3.000% due 06/25/40 | 2,972 | 339 | Interest Only STRIP | ||||||
Series 2016-101 Class QI | 4.000% due 07/15/43 | 1,412 | 205 | ||||||
Interest Only STRIP | Series 2014-4386 Class IL | ||||||||
3.500% due 04/25/42 | 2,135 | 266 | Interest Only STRIP | ||||||
Series 2016-102 Class JI | 4.000% due 12/15/43 | 2,198 | 371 | ||||||
Interest Only STRIP | Series 2014-4386 Class LI | ||||||||
3.500% due 02/25/46 | 1,422 | 216 | Interest Only STRIP | ||||||
Series 2016-104 Class NI | 4.000% due 02/15/43 | 2,270 | 337 | ||||||
Interest Only STRIP | Series 2014-4403 Class CI | ||||||||
5.000% due 04/25/38 | 1,455 | 51 | Interest Only STRIP | ||||||
Series 2016-4560 Class PI | 4.000% due 10/15/44 | 1,699 | 283 | ||||||
Interest Only STRIP | Series 2016-4550 Class AI | ||||||||
3.500% due 05/15/45 | 2,153 | 323 | Interest Only STRIP | ||||||
Series 2017-2 Class KI | 3.000% due 10/15/40 | 2,692 | 343 | ||||||
Interest Only STRIP | Series 2016-4568 Class MI | ||||||||
4.000% due 02/25/47 | 2,690 | 480 | Interest Only STRIP | ||||||
Series 2017-7 Class JI | 4.000% due 04/15/46 | 2,060 | 302 | ||||||
Interest Only STRIP | Series 2016-4601 Class PI | ||||||||
4.000% due 02/25/47 | 2,443 | 432 | Interest Only STRIP | ||||||
Series 2017-15 Class LI | 4.500% due 12/15/45 | 1,876 | 306 | ||||||
Interest Only STRIP | Series 2016-4635 Class PI | ||||||||
4.000% due 06/25/46 | 2,137 | 359 | Interest Only STRIP | ||||||
Series 2017-4656 Class AI | 4.000% due 12/15/46 | 2,263 | 411 | ||||||
Interest Only STRIP | Series 2017-4663 Class KI | ||||||||
3.000% due 09/15/37 | 4,170 | 359 | Interest Only STRIP | ||||||
3.500% due 11/15/42 | 2,660 | 335 |
See accompanying notes which are an integral part of the financial statements.
622 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Series 2017-4663 Class TI | Series 2015-167 Class BI | ||||||||
Interest Only STRIP | Interest Only STRIP | ||||||||
3.500% due 10/15/42 | 1,575 | 192 | 4.500% due 04/16/45 | 2,172 | 494 | ||||
Ginnie Mae | Series 2016-18 Class QI | ||||||||
Series 2010-35 Class QI | Interest Only STRIP | ||||||||
Interest Only STRIP | 4.000% due 08/20/44 | 2,338 | 438 | ||||||
4.500% due 03/20/40 | 2,153 | 432 | Series 2016-29 Class IO | ||||||
Series 2010-62 Class SD | Interest Only STRIP | ||||||||
Interest Only STRIP | 4.000% due 02/16/46 | 2,124 | 400 | ||||||
5.512% due 05/20/40 (Ê) | 860 | 155 | Series 2016-123 Class IQ | ||||||
Series 2010-134 Class ES | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.000% due 07/20/39 | 3,394 | 301 | ||||||
5.007% due 11/20/39 (Ê) | 2,106 | 205 | Series 2016-154 Class AI | ||||||
Series 2010-144 Class LS | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.000% due 02/20/41 | 1,287 | 77 | ||||||
5.439% due 07/16/37 | 2,938 | 94 | Series 2016-167 Class SB | ||||||
Series 2011-22 Class PS | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.022% due 04/20/38 (Ê) | 3,673 | 193 | ||||||
5.007% due 07/20/40 (Ê) | 1,888 | 194 | Series 2016-168 Class AI | ||||||
Series 2012-104 Class QI | Interest Only STRIP | ||||||||
Interest Only STRIP | 5.000% due 07/20/45 | 3,393 | 377 | ||||||
3.500% due 04/20/42 | 581 | 132 | Series 2016-H04 Class KI | ||||||
Series 2013-77 Class UI | Interest Only STRIP | ||||||||
Interest Only STRIP | 1.875% due 02/20/66 | 1,383 | 125 | ||||||
4.500% due 03/20/41 | 1,762 | 304 | Series 2016-H06 Class AI | ||||||
Series 2013-182 Class SY | Interest Only STRIP | ||||||||
Interest Only STRIP | 2.068% due 02/20/66 | 3,107 | 352 | ||||||
5.319% due 12/20/43 (Ê) | 1,515 | 273 | Series 2016-H17 Class DI | ||||||
Series 2014-69 Class IG | Interest Only STRIP | ||||||||
Interest Only STRIP | 1.999% due 07/20/66 | 5,651 | 704 | ||||||
5.000% due 09/20/43 | 1,931 | 355 | Series 2017-11 Class PI | ||||||
Series 2014-H09 Class AI | Interest Only STRIP | ||||||||
Interest Only STRIP | 4.000% due 12/20/46 | 2,428 | 351 | ||||||
1.437% due 01/20/64 | 9,147 | 539 | Series 2017-17 Class DI | ||||||
Series 2014-H13 Class BI | Interest Only STRIP | ||||||||
Interest Only STRIP | 3.500% due 09/20/43 | 2,812 | 360 | ||||||
1.593% due 05/20/64 | 13,393 | 860 | Series 2017-42 Class IC | ||||||
Series 2014-H25 Class BI | Interest Only STRIP | ||||||||
Interest Only STRIP | 4.500% due 08/20/41 | 2,152 | 430 | ||||||
1.646% due 12/20/64 | 5,272 | 462 | Series 2017-H03 Class DI | ||||||
Series 2015-50 Class IO | Interest Only STRIP | ||||||||
Interest Only STRIP | 2.195% due 12/20/66 | 8,034 | 1,120 | ||||||
4.000% due 04/20/45 | 4,268 | 655 | Series 2017-H06 Class EI | ||||||
Series 2015-60 Class PI | Interest Only STRIP | ||||||||
Interest Only STRIP | 1.572% due 02/20/67 | 8,933 | 668 | ||||||
4.000% due 04/20/45 | 2,451 | 477 | Series 2017-H08 Class DI | ||||||
Series 2015-106 Class CI | Interest Only STRIP | ||||||||
Interest Only STRIP | 2.377% due 02/20/67 | 5,393 | 823 | ||||||
4.000% due 05/20/45 | 1,055 | 173 | Series 2017-H08 Class GI | ||||||
Series 2015-131 Class BI | Interest Only STRIP | ||||||||
Interest Only STRIP | 2.313% due 02/20/67 | 1,594 | 256 | ||||||
3.500% due 06/20/41 | 2,288 | 294 | Series 2017-H09 Class HI | ||||||
Series 2015-133 Class MI | Interest Only STRIP | ||||||||
Interest Only STRIP | 1.823% due 03/20/67 | 6,811 | 846 | ||||||
3.000% due 05/20/44 | 2,781 | 359 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 623
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Series 2017-H09 Class IO | Series 2015-H15 Class JI | |||||||
Interest Only STRIP | Interest Only STRIP | |||||||
1.774% due 04/20/67 | 8,464 | 922 | 1.936% due 06/20/65 | 1,319 | 139 | |||
Ginnie Mae REMICS | Series 2015-H18 Class IA | |||||||
Class IA | Interest Only STRIP | |||||||
Interest Only STRIP | 1.816% due 06/20/65 | 1,032 | 82 | |||||
4.000% due 01/16/43 | 1,572 | 241 | Series 2015-H24 Class BI | |||||
Series 2012-129 Class IO | Interest Only STRIP | |||||||
Interest Only STRIP | 1.604% due 08/20/65 | 2,474 | 160 | |||||
4.500% due 11/16/42 | 654 | 147 | Series 2015-H25 Class AI | |||||
Series 2012-H06 Class AI | Interest Only STRIP | |||||||
Interest Only STRIP | 1.614% due 09/20/65 | 1,855 | 156 | |||||
1.361% due 01/20/62 | 10,628 | 593 | Series 2015-H26 Class GI | |||||
Series 2012-H10 Class AI | Interest Only STRIP | |||||||
Interest Only STRIP | 1.780% due 10/20/65 | 1,036 | 101 | |||||
1.219% due 12/20/61 | 10,205 | 479 | Series 2016-129 Class PI | |||||
Series 2013-23 Class IK | Interest Only STRIP | |||||||
Interest Only STRIP | 4.500% due 06/20/45 | 1,196 | 240 | |||||
3.000% due 09/20/37 | 2,683 | 287 | Series 2016-135 Class PI | |||||
Series 2013-H15 Class CI | Interest Only STRIP | |||||||
Interest Only STRIP | 4.000% due 05/20/46 | 1,879 | 385 | |||||
1.772% due 07/20/63 | 5,269 | 340 | Series 2016-147 Class BI | |||||
Series 2014-20 Class SQ | Interest Only STRIP | |||||||
Interest Only STRIP | 4.000% due 10/20/46 | 1,329 | 285 | |||||
5.122% due 07/20/43 (Ê) | 2,555 | 384 | Series 2016-H16 Class DI | |||||
Series 2014-44 Class IA | Interest Only STRIP | |||||||
Interest Only STRIP | 2.194% due 06/20/66 (Ê) | 3,463 | 447 | |||||
3.500% due 05/20/28 | 3,622 | 360 | Series 2016-H18 Class QI | |||||
Series 2014-139 Class NI | Interest Only STRIP | |||||||
Interest Only STRIP | 1.975% due 06/20/66 | 3,016 | 402 | |||||
3.500% due 08/20/28 | 4,116 | 351 | Series 2017-17 Class EI | |||||
Series 2015-40 Class KI | Interest Only STRIP | |||||||
Interest Only STRIP | 4.000% due 09/20/44 | 2,561 | 316 | |||||
4.000% due 07/20/44 | 3,621 | 630 | Series 2017-38 Class DI | |||||
Series 2015-79 Class MI | Interest Only STRIP | |||||||
Interest Only STRIP | 5.000% due 03/16/47 | 1,018 | 204 | |||||
4.000% due 05/20/44 | 2,094 | 298 | Series 2017-57 Class AI | |||||
Series 2015-111 Class IJ | Interest Only STRIP | |||||||
Interest Only STRIP | 4.000% due 06/20/45 | 1,242 | 238 | |||||
3.500% due 08/20/45 | 1,830 | 281 | Series 2017-H03 Class EI | |||||
Series 2015-134 Class LI | Interest Only STRIP | |||||||
Interest Only STRIP | 2.373% due 01/20/67 | 2,855 | 448 | |||||
3.500% due 05/20/39 | 1,389 | 159 | Series 2017-H03 Class KI | |||||
Series 2015-162 Class BI | Interest Only STRIP | |||||||
Interest Only STRIP | 2.768% due 01/20/67 | 1,503 | 240 | |||||
4.000% due 11/20/40 | 2,528 | 408 | Series 2017-H06 Class BI | |||||
Series 2015-H09 Class BI | Interest Only STRIP | |||||||
Interest Only STRIP | 2.256% due 02/20/67 | 7,173 | 976 | |||||
1.684% due 03/20/65 | 771 | 66 | Series 2017-H06 Class DI | |||||
Series 2015-H10 Class CI | Interest Only STRIP | |||||||
Interest Only STRIP | 1.755% due 02/20/67 | 9,835 | 1,047 | |||||
1.797% due 04/20/65 | 1,889 | 186 | Series 2017-H06 Class MI | |||||
Series 2015-H13 Class AI | Interest Only STRIP | |||||||
Interest Only STRIP | 2.169% due 02/20/67 | 2,640 | 381 | |||||
2.126% due 06/20/65 | 3,047 | 328 |
See accompanying notes which are an integral part of the financial statements.
624 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Series 2017-H08 Class NI | Series GMTN | ||||||||
Interest Only STRIP | 1.750% due 09/07/20 | EUR | 1,040 | 1,162 | |||||
2.147% due 03/20/67 | 7,529 | 1,007 | Kennedy Wilson Europe Real Estate | ||||||
Government National Mortgage | PLC | ||||||||
Association | 3.950% due 06/30/22 | GBP | 880 | 1,173 | |||||
Series 2010-3 Class MS | Landsbankinn HF | ||||||||
Interest Only STRIP | 1.625% due 03/15/21 | EUR | 405 | 449 | |||||
6.018% due 11/20/38 (Ê) | 1,866 | 121 | Madrilena Red de Gas Finance BV | ||||||
Series 2010-9 Class UI | 4.500% due 12/04/23 | EUR | 440 | 583 | |||||
Interest Only STRIP | Malaysia Government Bond | ||||||||
5.000% due 01/20/40 | 27,511 | 5,793 | Series 0311 | ||||||
Series 2011-17 Class S | 4.392% due 04/15/26 | MYR | 2,890 | 676 | |||||
Interest Only STRIP | Series 0415 | ||||||||
5.072% due 02/20/41 (Ê) | 5,635 | 900 | 4.254% due 05/31/35 | MYR | 1,430 | 318 | |||
Series 2013-H24 Class AI | Malaysia Government International Bond | ||||||||
Interest Only STRIP | Series 0114 | ||||||||
1.472% due 09/20/63 | 2,612 | 155 | 4.181% due 07/15/24 | MYR | 7,500 | 1,754 | |||
75,835 | Series 0310 | ||||||||
Non-US Bonds - 8.2% | 4.498% due 04/15/30 | MYR | 1,390 | 322 | |||||
America Movil SAB de CV | Series 0314 | ||||||||
5.000% due 10/27/26 | GBP | 480 | 751 | 4.048% due 09/30/21 | MYR | 2,940 | 685 | ||
Argentine Bonos del Tesoro | Series 0414 | ||||||||
16.000% due 10/17/23 | ARS | 5,690 | 412 | 3.654% due 10/31/19 | MYR | 4,005 | 927 | ||
15.500% due 10/17/26 | ARS | 10,330 | 745 | Marks and Spencer PLC | |||||
AXA SA | 3.000% due 12/08/23 | GBP | 230 | 304 | |||||
3.941% due 11/29/49 (ƒ) | EUR | 720 | 840 | Merlin Properties SOCIMI SA | |||||
Bank of Scotland PLC | 2.375% due 05/23/22 | EUR | 300 | 343 | |||||
6.375% due 08/16/19 | GBP | 505 | 729 | Mexican Bonos | |||||
Brazil Notas do Tesouro Nacional | Series M 20 | ||||||||
Series NTNF | 10.000% due 12/05/24 | MXN | 25,832 | 1,601 | |||||
10.000% due 01/01/23 | BRL | 380 | 123 | Series M 30 | |||||
10.000% due 01/01/25 | BRL | 8,680 | 2,788 | 10.000% due 11/20/36 | MXN | 18,652 | 1,232 | ||
10.000% due 01/01/27 | BRL | 5,440 | 1,739 | Series M | |||||
Colombian TES | 7.750% due 05/29/31 | MXN | 15,200 | 829 | |||||
Series B | Mexican Bonos de Desarrollo | ||||||||
5.000% due 11/21/18 | COP | 13,170,000 | 4,444 | Series M | |||||
10.000% due 07/24/24 | COP | 12,950,000 | 5,387 | 7.750% due 11/23/34 | MXN | 35,900 | 1,948 | ||
HSBC Holdings PLC | Mexico Government International Bond | ||||||||
5.750% due 12/20/27 | GBP | 385 | 603 | 2.750% due 04/22/23 | EUR | 740 | 869 | ||
Hungary Government Bond | NTPC, Ltd. | ||||||||
Series 19/A | 2.750% due 02/01/27 | EUR | 380 | 431 | |||||
6.500% due 06/24/19 | HUF | 823,000 | 3,240 | Peruvian Government International Bond | |||||
Series 23/A | Series REGS | ||||||||
6.000% due 11/24/23 | HUF | 87,000 | 365 | 6.900% due 08/12/37 | PEN | 6,020 | 2,004 | ||
Indonesia Treasury Bond | Petroleos Mexicanos | ||||||||
Series FR53 | 8.250% due 06/02/22 | GBP | 145 | 228 | |||||
8.250% due 07/15/21 | IDR | 40,770,000 | 3,219 | Philippine Government Bond | |||||
Series FR68 | Series 1060 | ||||||||
8.375% due 03/15/34 | IDR | 15,550,000 | 1,238 | 3.625% due 09/09/25 | PHP | 15,800 | 292 | ||
Series FR71 | Republic of Aregentina Governemnt | ||||||||
9.000% due 03/15/29 | IDR | 17,672,000 | 1,486 | International Bond | |||||
21.200% due 09/19/18 | ARS | 800 | 55 | ||||||
Series FR73 | 21.940% due 03/11/19 (Ê) | ARS | 410 | 28 | |||||
8.750% due 05/15/31 | IDR | 34,970,000 | 2,899 | Republic of South Africa Government | |||||
InterContinental Hotels Group PLC | International Bond | ||||||||
3.750% due 08/14/25 | GBP | 310 | 446 | ||||||
Islandsbanki hf |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 625
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Series 2023 | United States Treasury Notes | ||||||||
7.750% due 02/28/23 | ZAR | 26,136 | 1,923 | 1.125% due 02/28/19 | 400 | 399 | |||
Series 2032 | 3.000% due 02/15/47 | 500 | 505 | ||||||
8.250% due 03/31/32 | ZAR | 7,890 | 541 | 904 | |||||
Series 2048 | Total Long-Term Investments | ||||||||
8.750% due 02/28/48 | ZAR | 9,210 | 627 | (cost $551,163) | 558,342 | ||||
Series R214 | Common Stocks - 24.2% | ||||||||
6.500% due 02/28/41 | ZAR | 44,250 | 2,362 | Consumer Discretionary - 1.6% | |||||
Romania Government International Bond | Brinker International, Inc.(Ñ) | 612 | 27 | ||||||
Series 10Y | Cie Financiere Richemont SA | 14,631 | 1,222 | ||||||
4.750% due 02/24/25 | RON | 1,415 | 365 | Coach, Inc. | 18,156 | 715 | |||
Royal Bank of Scotland Group PLC | Diageo PLC | 30,114 | 877 | ||||||
2.500% due 03/22/23 | EUR | 770 | 872 | Flight Centre, Ltd. | 10,951 | 258 | |||
RSA Insurance Group PLC | Garmin, Ltd. | 11,088 | 564 | ||||||
5.125% due 10/10/45 | GBP | 215 | 307 | Genuine Parts Co. | 6,794 | 625 | |||
Russian Federal Bond - OFZ | Grand Korea Leisure Co., Ltd. | 18,523 | 353 | ||||||
Series 6205 | Grupo Televisa SAB - ADR | 44,291 | 1,076 | ||||||
7.600% due 04/14/21 | RUB | 45,640 | 800 | Harvey Norman Holdings, Ltd.(Ñ) | 67,618 | 212 | |||
Series 6212 | Hilton Worldwide Holdings, Inc. | 3,907 | 230 | ||||||
7.050% due 01/19/28 | RUB | 113,690 | 1,921 | Home Depot, Inc. (The) | 2,894 | 452 | |||
Series 6215 | Honda Motor Co., Ltd. | 38,600 | 1,120 | ||||||
7.000% due 08/16/23 | RUB | 118,230 | 2,011 | Hyundai Motor Co. | 14,084 | 1,780 | |||
RWE AG | Las Vegas Sands Corp. | 2,421 | 143 | ||||||
Series EMTn | Leggett & Platt, Inc. | 6,010 | 316 | ||||||
2.750% due 04/21/75 | EUR | 680 | 737 | Majestic Wine PLC | 21,846 | 108 | |||
Santander UK Group Holdings PLC | Mattel, Inc. | 13,016 | 292 | ||||||
7.375% due 12/29/49 (ƒ) | GBP | 275 | 379 | McDonald's Corp. | 3,963 | 555 | |||
SGSP (Australia) Assets Pty, Ltd. | Omnicom Group, Inc. | 2,828 | 232 | ||||||
5.125% due 02/11/21 | GBP | 190 | 280 | Pacific Textiles Holdings, Ltd. | 30,000 | 33 | |||
South Africa Government International | Pandora Media, Inc.(Æ)(Ñ) | 23,773 | 258 | ||||||
Bond | Pandox AB | 23,103 | 388 | ||||||
Series 2030 | |||||||||
8.000% due 01/31/30 | ZAR | 24,160 | 1,656 | Pearson PLC | 8,809 | 73 | |||
Series R186 | Red Rock Resorts, Inc. Class A | 2,779 | 65 | ||||||
10.500% due 12/21/26 | ZAR | 13,120 | 1,096 | SATS, Ltd. | 124,800 | 455 | |||
State Grid Overseas Investment, Ltd. | Secom Co., Ltd. | 4,561 | 331 | ||||||
Series REGS | Shingakukai Co., Ltd. | 35,484 | 184 | ||||||
1.250% due 05/19/22 | EUR | 1,040 | 1,153 | Singapore Press Holdings, Ltd. | 176,100 | 438 | |||
TDF Infrastructure SAS | Sky PLC | 14,681 | 189 | ||||||
2.875% due 10/19/22 | EUR | 400 | 475 | Tatts Group, Ltd. | 99,115 | 319 | |||
Thailand Government International Bond | Television Broadcasts, Ltd. | 8,600 | 33 | ||||||
3.625% due 06/16/23 | THB | 12,930 | 400 | Thomson Reuters Corp. | 12,116 | 550 | |||
3.850% due 12/12/25 | THB | 29,803 | 941 | Thor Industries, Inc. | 743 | 71 | |||
3.580% due 12/17/27 | THB | 7,920 | 244 | Tupperware Brands Corp. | 460 | 33 | |||
4.875% due 06/22/29 | THB | 10,300 | 354 | Vivendi SA - ADR | 6,939 | 138 | |||
Thomson Reuters Corp. | Wal-Mart Stores, Inc. | 5,297 | 398 | ||||||
3.309% due 11/12/21 | CAD | 1,465 | 1,130 | 15,113 | |||||
Turkey Government Bond | |||||||||
7.100% due 03/08/23 | TRY | 2,640 | 637 | Consumer Staples - 1.9% | |||||
8.000% due 03/12/25 | TRY | 8,460 | 2,106 | Astarta Holding NV(Æ) | 8,461 | 157 | |||
BrasilAgro - Co. Brasileira de | |||||||||
Turkey Government International Bond | 9,559 | 39 | |||||||
Propriedades Agricolas | |||||||||
10.700% due 02/17/21 | TRY | 10,180 | 2,869 | Britvic PLC | 24,004 | 207 | |||
Western Power Distribution PLC | China Yurun Food Group, Ltd.(Æ) | 371,000 | 56 | ||||||
3.625% due 11/06/23 | GBP | 430 | 605 | CK Hutchison Holdings, Ltd. | 41,719 | 521 | |||
76,458 | Coca-Cola Co. (The) | 65,335 | 2,819 | ||||||
United States Government Treasuries - 0.1% |
See accompanying notes which are an integral part of the financial statements.
626 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Colgate-Palmolive Co. | 2,472 | 178 | Woodside Petroleum, Ltd. | 10,301 | 248 | ||||
Dr Pepper Snapple Group, Inc. | 1,870 | 171 | 14,722 | ||||||
General Mills, Inc. | 1,326 | 76 | |||||||
Golden Agri-Resources, Ltd. | 1,685,800 | 435 | Financial Services - 5.7% | ||||||
JM Smucker Co. (The) | 350 | 44 | 3i Group PLC | 39,955 | 411 | ||||
Kernel Holding SA | 4,025 | 72 | Activia Properties, Inc.(ö) | 58 | 276 | ||||
Kimberly-Clark Corp. | 2,827 | 367 | ADO Properties SA(Þ) | 2,513 | 92 | ||||
KT&G Corp. | 6,791 | 606 | Aedifica(ö) | 938 | 74 | ||||
PepsiCo, Inc. | 28,360 | 3,213 | Aflac, Inc. | 4,737 | 355 | ||||
Procter & Gamble Co. (The) | 44,840 | 3,915 | AGNC Investment Corp. | 19,112 | 403 | ||||
Scandinavian Tobacco Group A/S(Þ) | 28,416 | 496 | Allied Properties Real Estate Investment | 8,864 | 238 | ||||
SLC Agricola SA | 50,367 | 311 | Trust(ö) | ||||||
Stock Spirits Group PLC | 278,814 | 632 | Allied World Assurance Co. Holdings | 3,341 | 177 | ||||
AG | |||||||||
Swedish Match AB | 43,683 | 1,441 | Ally Financial, Inc. | 52,931 | 1,049 | ||||
Sysco Corp. | 5,149 | 272 | alstria office REIT-AG(ö) | 14,759 | 195 | ||||
Unilever NV | 19,302 | 1,012 | American Financial Group, Inc. | 1,999 | 195 | ||||
Wm Morrison Supermarkets PLC | 117,863 | 366 | American Homes 4 Rent Class A(ö) | 15,873 | 366 | ||||
17,406 | American Tower Corp.(ö) | 1,669 | 210 | ||||||
Apple Hospitality REIT, Inc.(ö) | 4,525 | 85 | |||||||
Energy - 1.6% | Arthur J Gallagher & Co. | 11,801 | 659 | ||||||
AltaGas, Ltd. - ADR | 12,759 | 286 | Assura PLC(ö) | 153,745 | 122 | ||||
APA Group | 40,982 | 281 | ASX, Ltd. - ADR | 17,847 | 677 | ||||
ARC Resources, Ltd. | 43,107 | 566 | Australia & New Zealand Banking | ||||||
Areva SA(Æ)(Ñ) | 17,206 | 80 | Group, Ltd. - ADR | 24,386 | 597 | ||||
BP PLC - ADR | 25,175 | 864 | AvalonBay Communities, Inc.(ö) | 3,895 | 739 | ||||
BP PLC | 96,694 | 553 | Aviva PLC | 63,453 | 431 | ||||
Cenovus Energy, Inc. | 19,069 | 190 | Axis Capital Holdings, Ltd. | 5,360 | 353 | ||||
Chesapeake Energy Corp.(Æ) | 5,958 | 31 | Banco Bilbao Vizcaya Argentaria SA | 5,514 | 44 | ||||
Chevron Corp. | 9,758 | 1,042 | - ADR | ||||||
Cloud Peak Energy, Inc.(Æ) | 29,818 | 100 | Banco Santander SA - ADR | 7,869 | 51 | ||||
Denison Mines Corp.(Æ) | 107,383 | 55 | Bank Leumi Le-Israel BM(Æ) | 50,209 | 235 | ||||
Enbridge, Inc. | 8,623 | 357 | Barclays PLC | 153,256 | 418 | ||||
ENI SpA - ADR | 20,520 | 318 | Big Yellow Group PLC(ö) | 18,741 | 188 | ||||
ERG SpA | 12,182 | 151 | BNP Paribas SA | 1,902 | 134 | ||||
Bolsas y Mercados Espanoles SHMSF | |||||||||
Exxon Mobil Corp. | 22,439 | 1,833 | SA | 2,698 | 97 | ||||
Fission Uranium Corp.(Æ) | 114,859 | 52 | Brixmor Property Group, Inc.(ö) | 7,700 | 152 | ||||
Gazprom PAO | 150,624 | 362 | Buwog AG(Æ) | 7,979 | 215 | ||||
Gazprom PJSC - ADR | 95,596 | 453 | Canadian Imperial Bank of Commerce | 4,698 | 379 | ||||
Helmerich & Payne, Inc.(Ñ) | 7,620 | 462 | Chartwell Retirement Residences | 48,005 | 546 | ||||
Innogy SE(Þ) | 4,812 | 177 | Cheung Kong Property Holdings, Ltd. | 95,500 | 684 | ||||
Kinder Morgan, Inc. | 50,799 | 1,048 | Chubb, Ltd. | 2,806 | 385 | ||||
Lukoil PJSC - ADR | 2,570 | 127 | CI Financial Corp. | 12,250 | 240 | ||||
Occidental Petroleum Corp. | 6,712 | 413 | Cincinnati Financial Corp. | 8,952 | 645 | ||||
OMV AG | 6,284 | 289 | CIT Group, Inc. | 24,427 | 1,132 | ||||
PrairieSky Royalty, Ltd. | 20,327 | 443 | CMC Markets PLC(Þ) | 42,313 | 69 | ||||
Rice Midstream Partners, LP | 5,508 | 139 | CME Group, Inc. Class A | 6,314 | 734 | ||||
Royal Dutch Shell PLC Class A | 25,357 | 659 | CNA Financial Corp. | 12,672 | 574 | ||||
Royal Dutch Shell PLC Class B | 18,678 | 497 | Colony NorthStar, Inc.(Æ) | 15,430 | 410 | ||||
Statoil ASA Class N | 5,585 | 92 | Commonwealth Bank of Australia - ADR | 7,712 | 504 | ||||
Targa Resources Corp. | 3,406 | 188 | Corporate Office Properties Trust(ö) | 6,582 | 215 | ||||
Total SA | 10,229 | 524 | Cousins Properties, Inc.(ö) | 33,880 | 288 | ||||
Veresen, Inc. | 14,821 | 165 | Credit Agricole SA | 3,917 | 58 | ||||
Vermilion Energy, Inc. | 14,509 | 511 | Crown Castle International Corp.(ö) | 1,795 | 170 | ||||
Washington H Soul Pattinson & Co., Ltd. | 36,084 | 509 | CyrusOne, Inc.(ö) | 3,671 | 201 | ||||
Williams Cos., Inc. (The) | 21,444 | 657 | Deutsche Wohnen AG | 12,868 | 440 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 627
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Dexus Property Group(Æ)(ö) | 72,794 | 556 | Monmouth Real Estate Investment Corp. | 17,984 | 452 | |||
Digital Realty Trust, Inc.(ö) | 2,501 | 287 | (Æ) | |||||
Douglas Emmett, Inc.(ö) | 7,046 | 265 | Moscow Exchange MICEX-RTS PJSC | 80,692 | 163 | |||
Dundee Corp. Class A(Æ) | 32,855 | 76 | National Australia Bank, Ltd. - ADR | 1,551 | 39 | |||
DuPont Fabros Technology, Inc.(ö) | 4,976 | 257 | Natixis SA | 16,558 | 115 | |||
Education Realty Trust, Inc.(ö) | 5,467 | 212 | Nippon Building Fund, Inc.(ö) | 19 | 101 | |||
Elementis PLC | 28,724 | 113 | Nordea Bank AB | 21,169 | 260 | |||
Empire State Realty Trust, Inc. Class | Numis Corp. PLC | 40,010 | 144 | |||||
A(ö) | 11,101 | 231 | Old Republic International Corp. | 10,729 | 222 | |||
Entra ASA(Þ) | 9,144 | 105 | PacWest Bancorp | 11,029 | 545 | |||
Equinix, Inc.(ö) | 365 | 152 | Parkway, Inc.(ö) | 6,215 | 125 | |||
Equity Commonwealth(Æ) | 7,558 | 193 | PAX Global Technology, Ltd. | 210,000 | 130 | |||
Equity LifeStyle Properties, Inc.(Æ) | 7,775 | 200 | ProAssurance Corp. | 10,971 | 679 | |||
Equity LifeStyle Properties, Inc. Class | 3,428 | 277 | Progressive Corp. (The) | 8,568 | 340 | |||
A(ö) | Prologis, Inc.(ö) | 5,014 | 273 | |||||
Erie Indemnity Co. Class A | 5,314 | 658 | Public Storage(Æ) | 15,000 | 352 | |||
Essex Property Trust, Inc.(ö) | 2,400 | 587 | Quality Care Properties, Inc.(Æ)(ö) | 3,057 | 53 | |||
Etalon Group, Ltd. - GDR(Æ) | 52,778 | 203 | Realty Income Corp.(ö) | 7,233 | 422 | |||
Everest Re Group, Ltd. | 1,414 | 356 | Royal Bank of Canada - GDR | 9,782 | 670 | |||
Extra Space Storage, Inc.(ö) | 3,922 | 296 | Royal Bank of Scotland Group PLC(Æ) | 137,890 | 474 | |||
Fastighets AB Balder Class B(Æ) | 4,156 | 93 | Saga PLC | 52,862 | 143 | |||
Foxtons Group PLC | 132,211 | 176 | Sberbank of Russia PJSC Class T | 48,360 | 140 | |||
Gecina SA(ö) | 1,849 | 263 | Sberbank of Russia PJSC - ADR | 30,824 | 366 | |||
Genworth MI Canada, Inc.(Ñ) | 12,219 | 303 | Scentre Group(ö) | 37,912 | 122 | |||
GEO Group, Inc. (The)(ö) | 4,482 | 149 | Segro PLC(ö) | 60,452 | 380 | |||
Global Logistic Properties, Ltd. | 29,000 | 60 | Simon Property Group, Inc.(ö) | 3,771 | 623 | |||
Goodman Group(ö) | 62,188 | 377 | Skandinaviska Enskilda Banken AB | |||||
Great-West Lifeco, Inc. | 11,643 | 313 | Class A | 61,595 | 709 | |||
Groupe Bruxelles Lambert SA(Ñ) | 6,176 | 592 | SL Green Realty Corp.(ö) | 3,646 | 383 | |||
Guoco Group, Ltd. | 9,000 | 103 | Societe Generale SA | 11,869 | 649 | |||
Hang Lung Properties, Ltd. - ADR | 138,000 | 361 | Sompo Japan Nipponkoa Holdings, Inc. | 21,594 | 815 | |||
Hang Seng Bank, Ltd. | 35,900 | 728 | Sprott, Inc. | 213,479 | 368 | |||
HCP, Inc.(ö) | 18,564 | 582 | Sumitomo Realty & Development Co., | 7,000 | 189 | |||
Hispania Activos Inmobiliarios SOCIMI | Ltd. | |||||||
SA(ö) | 6,237 | 94 | Summit Hotel Properties, Inc.(Æ) | 10,000 | 258 | |||
HSBC Holdings PLC | 51,569 | 425 | Sun Communities, Inc.(ö) | 5,363 | 448 | |||
Hulic Reit, Inc.(ö) | 53 | 85 | Sun Hung Kai Properties, Ltd. | 23,000 | 345 | |||
IGM Financial, Inc. | 5,049 | 152 | Sunstone Hotel Investors, Inc.(ö) | 13,228 | 197 | |||
Immofinanz AG | 143,541 | 298 | Svenska Handelsbanken AB Class A | 41,944 | 595 | |||
Intact Financial Corp. | 2,291 | 157 | Swedbank AB Class A | 30,176 | 715 | |||
Interactive Brokers Group, Inc. Class A | 17,796 | 620 | TD Ameritrade Holding Corp. | 2,726 | 104 | |||
Intesa Sanpaolo SpA | 27,151 | 79 | TLG Immobilien AG | 8,047 | 163 | |||
ITE Group PLC | 16,624 | 38 | Tokyo Tatemono Co., Ltd. | 24,700 | 338 | |||
Japan Retail Fund Investment Corp.(ö) | 119 | 233 | Toronto Dominion Bank | 3,210 | 151 | |||
Kenedix Office Investment Corp. Class | 25 | 142 | Travelers Cos., Inc. (The) | 2,911 | 354 | |||
A(ö) | Tryg A/S | 10,635 | 204 | |||||
Kilroy Realty Corp.(ö) | 3,037 | 214 | Two Harbors Investment Corp.(ö) | 95,348 | 953 | |||
Klepierre - GDR(ö) | 8,404 | 330 | UDR, Inc.(ö) | 11,667 | 436 | |||
Link Real Estate Investment Trust(ö) | 19,500 | 140 | UNITE Group PLC (The)(ö) | 18,430 | 154 | |||
Lloyds Banking Group PLC | 1,748,297 | 1,571 | Uranium Participation Corp.(Æ) | 140,215 | 403 | |||
LondonMetric Property PLC(ö) | 66,380 | 145 | Urban & Civic PLC | 45,044 | 155 | |||
LSL Property Services PLC | 70,097 | 187 | Validus Holdings, Ltd. | 2,201 | 122 | |||
Man Group PLC | 90,574 | 180 | Vornado Realty Trust(Æ)(ö) | 10,060 | 541 | |||
McBride PLC(Æ) | 72,794 | 182 | Weingarten Realty Investors(ö) | 8,574 | 281 | |||
Mercury General Corp. | 10,737 | 660 | Wells Fargo & Co. | 57,816 | 3,114 | |||
Merlin Properties Socimi SA(ö) | 18,144 | 215 | Westpac Banking Corp. | 2,995 | 78 | |||
Mitsui Fudosan Co., Ltd. | 28,000 | 616 |
See accompanying notes which are an integral part of the financial statements.
628 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Workspace Group PLC(ö) | 5,405 | 61 | Amcor, Ltd. Class A | 22,333 | 262 | ||||
XL Group, Ltd. | 3,249 | 136 | Anglo American PLC(Æ) | 18,876 | 269 | ||||
53,551 | Arkema SA | 1,210 | 128 | ||||||
Barrick Gold Corp. | 19,102 | 319 | |||||||
Health Care - 2.4% | Cameco Corp. Class A | 80,351 | 771 | ||||||
AbbVie, Inc. | 5,936 | 391 | Centerra Gold, Inc. | 43,266 | 223 | ||||
Abiomed, Inc.(Æ) | 594 | 77 | Dongyue Group | 122,000 | 21 | ||||
Agilent Technologies, Inc. | 3,605 | 198 | Dow Chemical Co. (The) | 3,718 | 233 | ||||
Align Technology, Inc.(Æ) | 816 | 110 | DS Smith PLC Class F | 29,164 | 163 | ||||
Allscripts Healthcare Solutions, Inc.(Æ) | 2,901 | 35 | Dundee Precious Metals, Inc.(Æ) | 86,891 | 174 | ||||
Amgen, Inc. | 997 | 163 | EI du Pont de Nemours & Co. | 851 | 68 | ||||
As One Corp. | 7,181 | 318 | Essentra PLC | 5,531 | 39 | ||||
AstraZeneca PLC | 6,928 | 414 | Gabriel Resources, Ltd.(Æ) | 2,324,925 | 622 | ||||
Bio-Techne Corp. | 4,005 | 429 | Huntsman Corp. | 5,965 | 148 | ||||
Boston Scientific Corp.(Æ) | 4,592 | 121 | Impala Platinum Holdings, Ltd.(Æ) | 61,622 | 199 | ||||
Bristol-Myers Squibb Co. | 1,659 | 93 | Ivanhoe Mines, Ltd. Class A(Æ) | 64,337 | 226 | ||||
Celgene Corp.(Æ) | 523 | 65 | James Hardie Industries PLC | 2,330 | 40 | ||||
Charles River Laboratories International, | Kinross Gold Corp.(Æ) | 128,201 | 447 | ||||||
409 | 37 | ||||||||
Inc.(Æ) | Lanxess AG | 2,370 | 171 | ||||||
Cooper Cos., Inc. (The) | 247 | 49 | Lundin Gold, Inc.(Æ)(Ñ) | 55,217 | 239 | ||||
Eli Lilly & Co. | 6,312 | 518 | MHP SA - GDR | 34,913 | 360 | ||||
GlaxoSmithKline PLC - ADR | 65,073 | 1,309 | Mosaic Co. (The) | 14,092 | 379 | ||||
Hill-Rom Holdings, Inc. | 2,580 | 195 | New Gold, Inc.(Æ) | 25,357 | 72 | ||||
IDEXX Laboratories, Inc.(Æ) | 840 | 141 | Newcrest Mining, Ltd. | 48,352 | 772 | ||||
Illumina, Inc.(Æ) | 316 | 58 | Nippon Fine Chemical Co., Ltd. | 37,941 | 321 | ||||
Johnson & Johnson | 34,271 | 4,232 | Nitto FC Co., Ltd.(Ñ) | 36,185 | 293 | ||||
Medtronic PLC | 1,561 | 130 | Northern Dynasty Minerals, Ltd.(Æ)(Ñ) | 220,363 | 350 | ||||
Millennium Health LLC(Æ) | 2,491 | 3 | Novagold Resources, Inc.(Æ)(Ñ) | 22,878 | 96 | ||||
Nakanishi, Inc. | 4,220 | 166 | OHL Mexico SAB de CV | 180,437 | 222 | ||||
Novartis AG | 22,788 | 1,754 | Packaging Corp. of America | 1,858 | 184 | ||||
Patheon NV(Æ) | 3,403 | 92 | Praxair, Inc. | 2,383 | 298 | ||||
Patterson Cos., Inc.(Ñ) | 1,889 | 84 | Rio Tinto PLC | 5,865 | 232 | ||||
PerkinElmer, Inc. | 728 | 43 | Royal Gold, Inc. | 5,789 | 409 | ||||
Pfizer, Inc. | 112,294 | 3,810 | Safestore Holdings PLC(ö) | 11,650 | 61 | ||||
Premier, Inc. Class A(Æ) | 15,757 | 533 | Seabridge Gold, Inc.(Æ)(Ñ) | 5,127 | 53 | ||||
Protek PJSC | 42,289 | 75 | Silver Wheaton Corp. | 18,430 | 368 | ||||
Qiagen NV(Æ) | 2,507 | 75 | Sonoco Products Co. | 13,097 | 685 | ||||
Quest Diagnostics, Inc. | 3,430 | 362 | Tikkurila Oyj | 15,100 | 299 | ||||
ResMed, Inc. | 2,897 | 197 | Turquoise Hill Resources, Ltd.(Æ) | 82,929 | 226 | ||||
Roche Holding AG | 4,781 | 1,250 | |||||||
Sanofi - ADR | 29,557 | 2,791 | 10,616 | ||||||
Seattle Genetics, Inc.(Æ) | 942 | 64 | Producer Durables - 3.7% | ||||||
Sonic Healthcare, Ltd. | 6,233 | 103 | 3M Co. | 3,059 | 599 | ||||
Stryker Corp. | 6,298 | 859 | ABB, Ltd. | 27,149 | 664 | ||||
Teleflex, Inc. | 542 | 112 | Abertis Infraestructuras SA | 48,939 | 861 | ||||
TT electronics PLC | 96,244 | 257 | Accenture PLC Class A | 5,196 | 630 | ||||
UnitedHealth Group, Inc. | 959 | 168 | Aena SA(Þ) | 4,753 | 838 | ||||
VCA, Inc.(Æ) | 627 | 57 | Aeroports de Paris | 5,218 | 696 | ||||
Veeva Systems, Inc. Class A(Æ) | 3,559 | 191 | Ascential PLC | 22,892 | 105 | ||||
West Pharmaceutical Services, Inc. | 2,013 | 185 | Atlantia SpA | 46,293 | 1,173 | ||||
Zimmer Biomet Holdings, Inc. | 612 | 73 | Auckland International Airport, Ltd. | 193,960 | 919 | ||||
22,387 | Aurizon Holdings, Ltd. | 33,241 | 128 | ||||||
Babcock & Wilcox Co. (The) Class W(Æ) | 10,247 | 504 | |||||||
Materials and Processing - 1.1% | BBA Aviation PLC | 86,945 | 350 | ||||||
AdvanSix, Inc.(Æ) | 9 | — | Beijing Capital International Airport Co., | ||||||
Albemarle Corp. | 1,601 | 174 | Ltd. Class H | 128,000 | 181 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 629
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
Boeing Co. (The) | 4,520 | 835 | Tsakos Energy Navigation, Ltd.(Ñ) | 26,118 | 120 | |||
Boskalis Westminster(Ñ) | 13,369 | 492 | UniFirst Corp. | 4,734 | 659 | |||
Bureau Veritas SA | 23,654 | 548 | Union Pacific Corp. | 1,911 | 214 | |||
Canadian Pacific Railway, Ltd. | 895 | 137 | United Parcel Service, Inc. Class B | 7,740 | 832 | |||
Central Japan Railway Co. | 1,400 | 235 | United Technologies Corp. | 3,585 | 427 | |||
CH Robinson Worldwide, Inc. | 5,007 | 364 | Waste Management, Inc. | 6,958 | 506 | |||
China Merchants Port Holdings Co., Ltd. | 52,000 | 149 | West Japan Railway Co. | 6,300 | 421 | |||
Covanta Holding Corp. | 33,545 | 488 | 34,816 | |||||
CSX Corp. | 3,318 | 169 | ||||||
Cummins, Inc. | 4,480 | 676 | Technology - 2.7% | |||||
Daiseki Co., Ltd. | 14,600 | 326 | ACAL PLC | 17,431 | 58 | |||
Danone SA | 15,593 | 1,090 | Alphabet, Inc. Class A(Æ) | 3,140 | 2,903 | |||
De La Rue PLC | 17,803 | 158 | Analog Devices, Inc. | 8,931 | 681 | |||
Deutsche Post AG | 18,280 | 657 | Apple, Inc. | 3,082 | 443 | |||
Diana Shipping, Inc.(Æ) | 37,234 | 149 | AVX Corp. | 21,034 | 356 | |||
Eaton Corp. PLC | 529 | 40 | BCE, Inc. | 15,171 | 691 | |||
Ebara Corp. | 20,600 | 629 | CA, Inc. | 21,449 | 704 | |||
Emerson Electric Co. | 11,953 | 721 | Cisco Systems, Inc. | 22,202 | 756 | |||
Ferrovial SA | 17,200 | 366 | Cosel Co., Ltd. | 51,339 | 654 | |||
Flughafen Zuerich AG | 4,522 | 996 | Cypress Semiconductor Corp. | 18,886 | 265 | |||
Golden Ocean Group, Ltd.(Æ) | 23,293 | 180 | Ei Towers SpA | 4,278 | 247 | |||
Graco, Inc. | 647 | 70 | Electrocomponents PLC | 56,298 | 378 | |||
Grupo Aeroportuario del Pacifico SAB de | 5,416 | 557 | Hanergy Thin Film Power Group, Ltd. | 205,123 | 103 | |||
CV - ADR | (Æ) | |||||||
Guangshen Railway Co., Ltd. Class H | 416,000 | 225 | Hollysys Automation Technologies, Ltd. | 2,070 | 33 | |||
Hubbell, Inc. Class B | 5,706 | 646 | Hua Hong Semiconductor, Ltd.(Þ) | 79,000 | 112 | |||
Japan Steel Works, Ltd. (The) | 32,300 | 518 | Icom, Inc. | 14,343 | 328 | |||
Jiangsu Expressway Co., Ltd. Class H | 202,000 | 298 | Infosys, Ltd. - ADR | 31,314 | 456 | |||
Kamigumi Co., Ltd. | 20,000 | 182 | Infrastrutture Wireless Italiane SpA(Þ) | 39,747 | 220 | |||
KBR, Inc. | 8,296 | 117 | Intel Corp. | 49,592 | 1,793 | |||
Kitagawa Industries Co., Ltd. | 18,831 | 185 | International Business Machines Corp. | 4,838 | 775 | |||
Kurita Water Industries, Ltd. | 9,900 | 256 | Mail.Ru Group, Ltd. - GDR(Æ) | 6,806 | 179 | |||
Lockheed Martin Corp. | 2,858 | 770 | Maxim Integrated Products, Inc. | 5,588 | 247 | |||
Luks Group Vietnam Holdings Co., Ltd. | 112,000 | 39 | Microchip Technology, Inc. | 9,650 | 729 | |||
Macquarie Infrastructure Corp. | 17,142 | 1,395 | Microsoft Corp. | 43,886 | 3,004 | |||
Meggitt PLC | 132,935 | 796 | Nam Tai Property, Inc. | 2,041 | 16 | |||
Mitsubishi Corp. | 23,200 | 500 | NVC Lighting Holdings, Ltd. | 691,000 | 78 | |||
Mitsui & Co., Ltd. | 41,200 | 582 | Oracle Corp. | 74,154 | 3,334 | |||
MSC Industrial Direct Co., Inc. Class A | 4,486 | 402 | QUALCOMM, Inc. | 7,784 | 418 | |||
MTR Corp., Ltd. | 56,500 | 325 | Rogers Communications, Inc. Class B | 24,292 | 1,114 | |||
National Express Group PLC | 44,419 | 206 | Sanshin Electronics Co., Ltd. | 11,000 | 130 | |||
Nestle SA | 14,728 | 1,134 | Seagate Technology PLC | 802 | 34 | |||
Norfolk Southern Corp. | 1,084 | 127 | SES SA | 1,713 | 38 | |||
Organo Corp. | 37,000 | 170 | Spark New Zealand, Ltd. | 203,718 | 517 | |||
Orkla ASA | 43,563 | 395 | StarHub, Ltd. | 145,400 | 290 | |||
QinetiQ Group PLC | 101,878 | 387 | Symantec Corp. | 23,304 | 737 | |||
Raytheon Co. | 3,978 | 617 | Texas Instruments, Inc. | 7,577 | 600 | |||
Restaurant Group (The) PLC | 32,779 | 148 | Vodafone Group PLC | 492,135 | 1,269 | |||
Robert Walters PLC | 26,801 | 158 | VTech Holdings, Ltd. | 18,500 | 234 | |||
Rockwell Automation, Inc. | 1,211 | 191 | Xilinx, Inc. | 1,895 | 120 | |||
SDL PLC | 26,923 | 210 | Yandex NV Class A(Æ) | 10,483 | 286 | |||
Secom Joshinetsu Co., Ltd. | 12,402 | 376 | 25,330 | |||||
SIA Engineering Co., Ltd. | 105,200 | 282 | ||||||
Singapore Airlines, Ltd.(Æ) | 29,100 | 213 | Utilities - 3.5% | |||||
Skanska AB Class B | 23,561 | 563 | AGL Energy, Ltd. | 2,912 | 58 | |||
Transurban Group - ADR(Æ) | 169,142 | 1,544 | Alliant Energy Corp. | 12,288 | 484 |
See accompanying notes which are an integral part of the financial statements.
630 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||
Principal | Fair | Principal | Fair | |||||
Amount ($) | Value | Amount ($) | Value | |||||
or Shares | $ | or Shares | $ | |||||
America Movil SAB de CV | 2,014,852 | 1,548 | Swisscom AG | 1,332 | 581 | |||
American Water Works Co., Inc. | 8,881 | 708 | Telefonica SA - ADR | 11,619 | 128 | |||
Antero Midstream Partners, LP | 3,957 | 135 | Telenor ASA | 22,893 | 370 | |||
AT&T, Inc. | 18,005 | 714 | Telia Co. AB | 73,794 | 301 | |||
Atmos Energy Corp. | 1,785 | 145 | Telstra Corp., Ltd. | 181,290 | 573 | |||
Canadian Natural Resources, Ltd. | 9,855 | 314 | TELUS Corp. | 11,988 | 399 | |||
CenterPoint Energy, Inc. | 1,844 | 53 | TransCanada Corp. | 26,827 | 1,246 | |||
Centrais Eletricas Brasileiras SA(Æ) | 91,812 | 522 | United Utilities Group PLC | 20,949 | 264 | |||
Chemring Group PLC | 77,033 | 188 | WEC Energy Group, Inc. | 26,034 | 1,576 | |||
Cheniere Energy, Inc.(Æ) | 10,256 | 465 | Xcel Energy, Inc. | 13,547 | 610 | |||
Cia de Saneamento Basico do Estado de | 16,746 | 154 | 32,504 | |||||
Sao Paulo(Æ) | ||||||||
CLP Holdings, Ltd. | 120,500 | 1,271 | ||||||
CMS Energy Corp. | 10,276 | 467 | Total Common Stocks | |||||
DUET Group | 19,366 | 44 | (cost $212,642) | 226,445 | ||||
Duke Energy Corp. | 1,634 | 135 | Preferred Stocks - 3.3% | |||||
E.ON SE | 21,396 | 167 | Consumer Discretionary - 0.3% | |||||
Edison International | 8,828 | 706 | CHS, Inc. | 51,121 | 1,477 | |||
Electricite de France SA | 63,826 | 534 | eBay, Inc. | 8,913 | 236 | |||
Enagas SA | 21,942 | 577 | GMAC Capital Trust I | 52,299 | 1,332 | |||
Enbridge, Inc. | 18,876 | 782 | 3,045 | |||||
Endesa SA - ADR | 7,222 | 170 | Consumer Staples - 0.1% | |||||
Energisa SA | 19,145 | 137 | Dairy Farmers of America, Inc. | 8,600 | 936 | |||
Engie SA | 83,950 | 1,184 | McBride PLC | 1,019,116 | 1 | |||
Exelon Corp. | 36,334 | 1,257 | 937 | |||||
Federal Grid PJSC | 143,524,282 | 495 | Energy - 0.0% | |||||
Fortum OYJ | 13,748 | 200 | Southern Co. (The) | 16,900 | 448 | |||
Freenet AG | 3,044 | 96 | ||||||
Great Plains Energy, Inc. | 9,330 | 276 | Financial Services - 2.5% | |||||
Hess Midstream Partners LP(Æ) | 6,211 | 159 | Aegon NV | 14,400 | 375 | |||
HK Electric Investments & HK Electric | Allstate Corp. (The) | 14,605 | 404 | |||||
181,500 | 161 | |||||||
Investments, Ltd.(Þ) | American Financial Group, Inc. | 17,200 | 438 | |||||
Inter Pipeline, Ltd. | 29,912 | 609 | American Homes 4 Rent | 35,024 | 932 | |||
Keyera Corp. | 10,890 | 301 | Arch Capital Group, Ltd. | 26,450 | 611 | |||
KT Corp. | 14,082 | 399 | Ares Management, LP | 33,431 | 876 | |||
MEG Energy Corp. Class A(Æ) | 56,850 | 257 | Aspen Insurance Holdings, Ltd. | 8,375 | 204 | |||
National Grid PLC | 40,096 | 519 | AXIS Capital Holdings, Ltd. | 21,800 | 528 | |||
NextEra Energy, Inc. | 12,582 | 1,680 | Bank of America Corp. | 22,653 | 588 | |||
NiSource, Inc. | 7,741 | 188 | Capital One Financial Corp. | 15,500 | 387 | |||
Noble Midstream Partners, LP | 2,449 | 123 | Charles Schwab Corp. (The) | 16,781 | 452 | |||
Northland Power, Inc. | 8,599 | 152 | Chesapeake Lodging Trust | 7,200 | 183 | |||
Pattern Energy Group, Inc. Class A | 9,091 | 200 | Citigroup, Inc. | 27,018 | 755 | |||
PCCW, Ltd. | 662,000 | 374 | CoBank ACB | 2,200 | 227 | |||
Pembina Pipeline Corp. | 32,601 | 1,039 | Colony NorthStar, Inc. | 14,900 | 390 | |||
PG&E Corp. | 14,166 | 950 | DDR Corp. | 4,783 | 120 | |||
Pinnacle West Capital Corp. | 7,017 | 597 | DuPont Fabros Technology, Inc. | 16,018 | 439 | |||
Power Assets Holdings, Ltd. | 10,000 | 90 | Endurance Specialty Holdings, Ltd. | 5,687 | 150 | |||
PPL Corp. | 33,855 | 1,289 | Farm Credit Bank of Texas | 20,696 | 2,357 | |||
Proximus(Ñ) | 20,513 | 627 | Goldman Sachs Group, Inc. (The) | 13,847 | 373 | |||
Public Service Enterprise Group, Inc. | 4,698 | 207 | Hanover Insurance Group, Inc. (The) | 11,900 | 301 | |||
RusHydro PJSC - ADR | 171,059 | 255 | Huntington Bancshares, Inc. | 11,767 | 319 | |||
RusHydro PJSC | 20,405,826 | 321 | JPMorgan Chase & Co. | 15,000 | 403 | |||
Sempra Energy | 5,128 | 580 | KKR & Co., LP | 28,200 | 735 | |||
Severfield-Rowen PLC | 88,442 | 101 | Legg Mason, Inc. | 24,320 | 582 | |||
Singapore Telecommunications, Ltd. | 258,666 | 690 | Morgan Stanley | 60,836 | 1,667 | |||
Snam Rete Gas SpA | 136,123 | 602 | National Retail Properties, Inc. | 15,700 | 379 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 631
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||
Principal | Fair | Principal | Fair | |||||||||
Amount ($) | Value | Amount ($) | Value | |||||||||
or Shares | $ | or Shares | $ | |||||||||
National Westminster Bank PLC | 11,824 | 310 | 2017 Warrant | 2,510 | 125 | |||||||
New York Community Bancorp, Inc. | 30,700 | 841 | ||||||||||
PartnerRe, Ltd. | 1,682 | 46 | Total Warrants & Rights | |||||||||
Pennsylvania Real Estate Investment | 1,939 | 49 | (cost $—) | 125 | ||||||||
Trust | Short-Term Investments - 12.0% | |||||||||||
PS Business Parks, Inc. | 8,465 | 213 | ||||||||||
Public Storage | 1,562 | 327 | Argentina Bonar Bonds | |||||||||
Regions Financial Corp. | 8,723 | 246 | 22.401% due 10/09/17 (Ê) | ARS | 1,060 | 70 | ||||||
Reinsurance Group of America, Inc. | 11,300 | 315 | Argentine Bonos del Tesoro | |||||||||
Rexford Industrial Realty, Inc. | 19,500 | 488 | 22.750% due 03/05/18 | ARS | 810 | 56 | ||||||
STAG Industrial, Inc. | 7,037 | 189 | Avaya, Inc. 1st Lien Term Loan B4 | |||||||||
Stifel Financial Corp. | 7,558 | 200 | 8.538% due 01/23/18 (Ê) | 549 | 563 | |||||||
Summit Hotel Properties, Inc. | 14,653 | 376 | Hungary Treasury Bills | |||||||||
Sunstone Hotel Investors, Inc. | 30,891 | 787 | Series 12 M | |||||||||
Taubman Centers, Inc. | 7,313 | 186 | 0.170% due 09/13/17 | HUF | 232,140 | 807 | ||||||
Urstadt Biddle Properties, Inc. | 2,125 | 54 | Malaysia Government Bond | |||||||||
Validus Holdings, Ltd. | 15,448 | 385 | Series 0213 | |||||||||
Ventas, Inc. | 14,987 | 373 | 3.260% due 03/01/18 | MYR | 5,060 | 1,167 | ||||||
VEREIT, Inc. | 36,248 | 933 | Optima Specialty Steel, Inc. Term Loan | |||||||||
Wells Fargo & Co. | 54,595 | 1,413 | 1.000% due 10/31/17 (Þ)(v) | 6,220 | 6,220 | |||||||
WR Berkley Corp. | 15,380 | 388 | Poland Government Bond | |||||||||
Series 1017 | ||||||||||||
23,294 | 5.250% due 10/25/17 | PLN | 7,000 | 1,836 | ||||||||
Technology - 0.1% | Romania Government Bond | |||||||||||
Qwest Corp. | 26,103 | 651 | Series 5YR | |||||||||
5.900% due 07/26/17 | RON | 9,270 | 2,251 | |||||||||
Utilities - 0.3% | Turkey Government International Bond | |||||||||||
Dominion Resources, Inc. | 18,200 | 447 | Series 5Y | |||||||||
DTE Energy Co. | 17,903 | 445 | 6.300% due 02/14/18 | TRY | 7,990 | 2,167 | ||||||
Integrys Holding, Inc. | 34,500 | 939 | U.S. Cash Management Fund | 86,385,300 | (8) | 86,402 | ||||||
NextEra Energy Capital Holdings, Inc. | 14,096 | 347 | United States Treasury Bills | |||||||||
NuStar Energy LP | 17,761 | 450 | 0.462% due 05/11/17 (ç)(~) | 30 | 30 | |||||||
NuStar Logistics LP | 5,347 | 137 | 0.609% due 06/01/17 | 7,600 | 7,596 | |||||||
SCE Trust III | 14,000 | 396 | 0.743% due 07/06/17 (~) | 1,091 | 1,090 | |||||||
3,161 | 0.744% due 07/13/17 (~) | 1,418 | 1,416 | |||||||||
Total Preferred Stocks | 0.770% due 07/20/17 (~) | 395 | 394 | |||||||||
0.139% due 11/02/17 (ç)(~) | 1 | 1 | ||||||||||
(cost $31,435) | 31,536 | Total Short-Term Investments | ||||||||||
Options Purchased - 0.2% | (cost $111,936) | 112,066 | ||||||||||
(Number of Contracts) | Other Securities - 0.6% | |||||||||||
EURO STOXX 50 Index | U.S. Cash Collateral Fund(×) | 5,418,067 | (8) | 5,418 | ||||||||
May 2017 3,303.33 Call (2,650) | EUR | 8,754 | (ÿ) | 661 | Total Other Securities | |||||||
Fannie Mae Bonds | (cost $5,418) | 5,418 | ||||||||||
May 2017 102.38 Call (1) | USD | 37,000 | (ÿ) | 190 | Total Investments 100.0% | |||||||
Jun 2017 99.25 Call (1) | USD | 71,000 | (ÿ) | 611 | (identified cost $913,841) | 935,619 | ||||||
S&P 500 Index | ||||||||||||
Jun 2017 2,395.40 Call (8,432) | USD | 20,198 | (ÿ) | 197 | ||||||||
Swaptions | Other Assets and Liabilities, | |||||||||||
(Fund Receives/Fund | Net - (0.0%) | (301 | ) | |||||||||
Pays) | ||||||||||||
USD 3 Month LIBOR/USD | Net Assets - 100.0% | 935,318 | ||||||||||
2.152% | ||||||||||||
May 2017 Call (0) | USD | 8,829 | (ÿ) | 28 | ||||||||
Total Options Purchased | ||||||||||||
(cost $1,247) | 1,687 | |||||||||||
Warrants & Rights - 0.0% | ||||||||||||
Foresight Energy, LP(Å) |
See accompanying notes which are an integral part of the financial statements.
632 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
Principal | Cost per | Cost | Fair Value | |||||||||
% of Net Assets | Acquisition | Amount ($) | Unit | (000 | ) | (000 | ) | |||||
Securities | Date | or shares | $ | $ | $ | |||||||
0.8% | ||||||||||||
BioScrip, Inc. 1st Lien Term Loan B | 05/08/15 | 537,476 | 99.19 | 533 | 528 | |||||||
BioScrip, Inc. Term Loan | 05/08/15 | 895,794 | 99.19 | 889 | 880 | |||||||
Century Aluminum Co. | 09/21/15 | 5,450,000 | 95.81 | 5,222 | 5,512 | |||||||
Foresight Energy, LP | 08/26/16 | 2,510 | — | — | 125 | |||||||
Patterson Co. 2nd Lien Term Loan | 08/14/15 | 590,000 | 99.00 | 584 | 575 | |||||||
7,620 | ||||||||||||
For a description of restricted securities see note 8 in the Notes to Financial Statements. |
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Amsterdam Index Futures | 21 | EUR | 2,170 | 05/17 | 53 | ||
CAC40 Euro Index Futures | 126 | EUR | 6,571 | 05/17 | 374 | ||
DAX Index Futures | 19 | EUR | 5,922 | 06/17 | 233 | ||
FTSE/MIB Index Futures | 14 | EUR | 1,420 | 06/17 | 92 | ||
IBEX 35 Index Futures | 20 | EUR | 2,146 | 05/17 | 112 | ||
MSCI Emerging Markets Mini Index Futures | 419 | USD | 23,424 | 06/17 | 1,223 | ||
OMXS30 Index Futures | 88 | SEK | 14,238 | 05/17 | 70 | ||
Russell 1000 Mini Index Futures | 5 | USD | 330 | 06/17 | 3 | ||
S&P 500 E-Mini Index Futures | 57 | USD | 6,784 | 06/17 | 25 | ||
S&P Consumer Discretionary Select Sector Index Futures | 68 | USD | 6,176 | 06/17 | 237 | ||
S&P Financial Select Sector Index Futures | 385 | USD | 27,855 | 06/17 | (1,383 | ) | |
S&P Mid 400 E-Mini Index Futures | 3 | USD | 519 | 06/17 | 8 | ||
TOPIX Index Futures | 51 | JPY | 780,300 | 06/17 | (57 | ) | |
United States 2 Year Treasury Note Futures | 28 | USD | 6,065 | 06/17 | 10 | ||
United States 5 Year Treasury Note Futures | 80 | USD | 9,473 | 06/17 | 76 | ||
United States 10 Year Treasury Note Futures | 103 | USD | 12,949 | 06/17 | 102 | ||
United States Long Bond Futures | 41 | USD | 6,272 | 06/17 | 134 | ||
United States Ultra Treasury Bond Futures | 10 | USD | 1,629 | 06/17 | 8 | ||
Short Positions | |||||||
Dow Jones U.S. Real Estate Index Futures | 551 | USD | 17,169 | 06/17 | (746 | ) | |
EURO STOXX 50 Index Futures | 147 | EUR | 5,157 | 06/17 | (285 | ) | |
FTSE 100 Index Futures | 71 | GBP | 5,087 | 06/17 | 111 | ||
FTSE 250 Index Futures | 24 | GBP | 938 | 06/17 | (46 | ) | |
Hang Seng Index Futures | 4 | HKD | 4,912 | 05/17 | (8 | ) | |
MSCI Singapore Index Futures | 69 | SGD | 2,398 | 05/17 | (19 | ) | |
Russell 1000 Mini Index Futures | 12 | USD | 792 | 06/17 | (6 | ) | |
S&P 500 E-Mini Index Futures | 154 | USD | 18,330 | 06/17 | (143 | ) | |
S&P Energy Select Sector Index Futures | 45 | USD | 3,049 | 06/17 | 89 | ||
S&P Mid 400 E-Mini Index Futures | 6 | USD | 1,038 | 06/17 | (17 | ) | |
S&P Utilities Select Sector Index Futures | 185 | USD | 9,609 | 06/17 | (267 | ) | |
S&P/TSX 60 Index Futures | 129 | CAD | 23,653 | 06/17 | (90 | ) | |
SPI 200 Index Futures | 78 | AUD | 11,530 | 06/17 | (244 | ) | |
United States 5 Year Treasury Note Futures | 18 | USD | 2,131 | 06/17 | 5 | ||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | (346 | ) |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 633
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Options Written | ||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||
Number of | Strike | Notional | Expiration | Fair Value | ||||||||
Call/Put | Contracts | Price | Amount | Date | $ | |||||||
EURO STOXX 50 Index | Put | 2,650 | 2,939.96 | EUR | 7,791 | 05/19/17 | (2 | ) | ||||
Fannie Mae Bonds | Put | 1 | 102.38 | USD | 37,000 | 05/04/17 | (13 | ) | ||||
Fannie Mae Bonds | Put | 1 | 99.25 | USD | 71,000 | 06/06/17 | (266 | ) | ||||
S&P 500 Index | Put | 8,432 | 2,134.52 | USD | 17,998 | 06/16/17 | (28 | ) | ||||
Swaptions | ||||||||||||
(Fund Receives/Fund Pays) | ||||||||||||
USD 2.262%/USD 3 Month LIBOR | Call | 1 | 0.00 | USD | 4,415 | 05/02/17 | (28 | ) | ||||
Total Liability for Options Written (premiums received $851) | (337 | ) | ||||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||||||||
Number of | Premiums | |||||||||||
Contracts | Received | |||||||||||
Outstanding October 31, 2016 | 85,766 | $ | 1,154 | |||||||||
Opened | 260,107 | 2,654 | ||||||||||
Closed | (288,846 | ) | (2,398 | ) | ||||||||
Expired | (45,942 | ) | (559 | ) | ||||||||
Outstanding April 30, 2017 | 11,085 | $ | 851 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 4 | EUR | 4 | 05/02/17 | — | |
Bank of America | USD | 8 | EUR | 8 | 05/02/17 | — | |
Bank of America | USD | 13 | EUR | 12 | 05/02/17 | — | |
Bank of America | USD | 2 | EUR | 2 | 05/03/17 | — | |
Bank of America | USD | 5 | EUR | 4 | 05/03/17 | — | |
Bank of America | USD | 5 | EUR | 5 | 05/03/17 | — | |
Bank of America | USD | 21 | HKD | 163 | 05/02/17 | — | |
Bank of America | USD | 21 | HKD | 163 | 05/04/17 | — | |
Bank of America | USD | 1,971 | INR | 133,680 | 06/21/17 | 97 | |
Bank of America | USD | 1 | NOK | 11 | 05/03/17 | — | |
Bank of America | USD | 12 | NOK | 99 | 05/03/17 | — | |
Bank of America | USD | 2 | SEK | 19 | 05/03/17 | — | |
Bank of America | USD | 4 | SEK | 33 | 05/03/17 | — | |
Bank of America | USD | 311 | ZAR | 4,138 | 06/21/17 | (4 | ) |
Bank of America | AUD | 670 | USD | 510 | 06/21/17 | 9 | |
Bank of America | CAD | 1,520 | USD | 1,140 | 06/21/17 | 26 | |
Bank of America | CNY | 87,690 | USD | 12,579 | 06/21/17 | (71 | ) |
Bank of America | EUR | 7,810 | USD | 8,471 | 06/21/17 | (57 | ) |
Bank of America | GBP | 1 | USD | 1 | 05/03/17 | — | |
Bank of America | GBP | 1 | USD | 2 | 05/03/17 | — | |
Bank of America | GBP | 3 | USD | 4 | 05/03/17 | — | |
Bank of America | GBP | 4,020 | USD | 5,026 | 06/21/17 | (187 | ) |
Bank of America | HKD | 109 | USD | 14 | 05/02/17 | — | |
Bank of America | HKD | 154 | USD | 20 | 05/02/17 | — | |
Bank of America | HKD | 219 | USD | 28 | 05/04/17 | — | |
Bank of America | KRW | 2,918,030 | USD | 2,555 | 06/21/17 | (11 | ) |
Bank of Montreal | USD | 4,101 | AUD | 5,420 | 06/21/17 | (46 | ) |
Bank of Montreal | USD | 133 | EUR | 126 | 06/21/17 | 4 |
See accompanying notes which are an integral part of the financial statements.
634 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of Montreal | USD | 915 | JPY | 103,820 | 06/21/17 | 19 | |
Bank of Montreal | USD | 11 | SEK | 100 | 06/21/17 | — | |
Bank of Montreal | USD | 311 | ZAR | 4,138 | 06/21/17 | (4 | ) |
Bank of Montreal | AUD | 1,662 | USD | 1,270 | 06/21/17 | 26 | |
Bank of Montreal | CAD | 1,728 | USD | 1,296 | 06/21/17 | 29 | |
Bank of Montreal | CHF | 34 | USD | 34 | 06/21/17 | — | |
Bank of Montreal | GBP | 1,282 | USD | 1,578 | 06/21/17 | (84 | ) |
Bank of Montreal | HKD | 910 | USD | 117 | 06/21/17 | — | |
Bank of Montreal | NOK | 1,614 | USD | 192 | 06/21/17 | 4 | |
Bank of Montreal | SGD | 484 | USD | 343 | 06/21/17 | (3 | ) |
BNP Paribas | USD | 133 | EUR | 126 | 06/21/17 | 5 | |
BNP Paribas | USD | 911 | JPY | 103,820 | 06/21/17 | 22 | |
BNP Paribas | USD | 11 | SEK | 100 | 06/21/17 | — | |
BNP Paribas | USD | 311 | ZAR | 4,138 | 06/21/17 | (4 | ) |
BNP Paribas | AUD | 1,662 | USD | 1,258 | 06/21/17 | 15 | |
BNP Paribas | CAD | 1,728 | USD | 1,293 | 06/21/17 | 26 | |
BNP Paribas | CHF | 34 | USD | 34 | 06/21/17 | (1 | ) |
BNP Paribas | GBP | 1,282 | USD | 1,578 | 06/21/17 | (84 | ) |
BNP Paribas | HKD | 910 | USD | 117 | 06/21/17 | — | |
BNP Paribas | NOK | 1,614 | USD | 191 | 06/21/17 | 2 | |
BNP Paribas | SGD | 484 | USD | 343 | 06/21/17 | (4 | ) |
Citigroup | ZAR | 17,980 | USD | 1,281 | 06/21/17 | (53 | ) |
HSBC | USD | 5,723 | MXN | 108,787 | 06/21/17 | 9 | |
HSBC | COP | 3,731,325 | USD | 1,290 | 06/15/17 | 30 | |
HSBC | ILS | 6,523 | USD | 1,800 | 07/31/17 | (6 | ) |
JPMorgan Chase | USD | 1,270 | ARS | 21,247 | 10/10/17 | 6 | |
JPMorgan Chase | USD | 983 | CLP | 654,678 | 10/30/17 | (10 | ) |
JPMorgan Chase | USD | 3,600 | CNY | 24,912 | 06/06/17 | — | |
JPMorgan Chase | USD | 991 | CZK | 24,131 | 11/03/17 | (1 | ) |
JPMorgan Chase | USD | 804 | PLN | 3,128 | 06/01/17 | 2 | |
JPMorgan Chase | USD | 896 | RON | 3,730 | 06/30/17 | — | |
JPMorgan Chase | ARS | 22,193 | USD | 1,410 | 10/10/17 | 78 | |
JPMorgan Chase | ARS | 23,603 | USD | 1,410 | 10/10/17 | (7 | ) |
JPMorgan Chase | COP | 4,942,080 | USD | 1,664 | 06/15/17 | (5 | ) |
JPMorgan Chase | MXN | 11,188 | USD | 587 | 06/21/17 | (2 | ) |
JPMorgan Chase | TRY | 945 | USD | 256 | 06/30/17 | (6 | ) |
JPMorgan Chase | ZAR | 4,208 | USD | 312 | 06/30/17 | — | |
Royal Bank of Canada | USD | 133 | EUR | 126 | 06/21/17 | 5 | |
Royal Bank of Canada | USD | 912 | JPY | 103,820 | 06/21/17 | 21 | |
Royal Bank of Canada | USD | 11 | SEK | 100 | 06/21/17 | — | |
Royal Bank of Canada | USD | 311 | ZAR | 4,138 | 06/21/17 | (4 | ) |
Royal Bank of Canada | AUD | 1,662 | USD | 1,260 | 06/21/17 | 16 | |
Royal Bank of Canada | CAD | 1,728 | USD | 1,293 | 06/21/17 | 26 | |
Royal Bank of Canada | CHF | 34 | USD | 34 | 06/21/17 | — | |
Royal Bank of Canada | GBP | 1,282 | USD | 1,577 | 06/21/17 | (85 | ) |
Royal Bank of Canada | HKD | 910 | USD | 117 | 06/21/17 | — | |
Royal Bank of Canada | NOK | 1,614 | USD | 191 | 06/21/17 | 3 | |
Royal Bank of Canada | SGD | 484 | USD | 343 | 06/21/17 | (4 | ) |
Standard Chartered | USD | 133 | EUR | 126 | 06/21/17 | 4 | |
Standard Chartered | USD | 914 | JPY | 103,820 | 06/21/17 | 19 | |
Standard Chartered | USD | 11 | SEK | 100 | 06/21/17 | — | |
Standard Chartered | USD | 311 | ZAR | 4,138 | 06/21/17 | (4 | ) |
Standard Chartered | AUD | 1,662 | USD | 1,270 | 06/21/17 | 26 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 635
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Standard Chartered | CAD | 1,728 | USD | 1,296 | 06/21/17 | 29 | |
Standard Chartered | CHF | 34 | USD | 34 | 06/21/17 | — | |
Standard Chartered | GBP | 1,282 | USD | 1,578 | 06/21/17 | (85 | ) |
Standard Chartered | HKD | 910 | USD | 117 | 06/21/17 | — | |
Standard Chartered | NOK | 1,614 | USD | 192 | 06/21/17 | 4 | |
Standard Chartered | SGD | 484 | USD | 343 | 06/21/17 | (3 | ) |
State Street | USD | 1,137 | CAD | 1,520 | 06/21/17 | (23 | ) |
State Street | USD | 351 | EUR | 326 | 05/26/17 | 5 | |
State Street | USD | 723 | EUR | 674 | 05/26/17 | 12 | |
State Street | USD | 133 | EUR | 126 | 06/21/17 | 4 | |
State Street | USD | 8,793 | EUR | 8,210 | 06/21/17 | 172 | |
State Street | USD | 6,402 | GBP | 5,120 | 06/21/17 | 239 | |
State Street | USD | 912 | JPY | 103,820 | 06/21/17 | 22 | |
State Street | USD | 11 | SEK | 100 | 06/21/17 | — | |
State Street | USD | 4,599 | THB | 159,430 | 06/21/17 | 9 | |
State Street | AUD | 1,662 | USD | 1,260 | 06/21/17 | 17 | |
State Street | CAD | 1,728 | USD | 1,293 | 06/21/17 | 26 | |
State Street | CAD | 1,554 | USD | 1,162 | 06/23/17 | 23 | |
State Street | CHF | 34 | USD | 34 | 06/21/17 | — | |
State Street | EUR | 403 | USD | 430 | 05/26/17 | (9 | ) |
State Street | EUR | 782 | USD | 857 | 05/26/17 | 4 | |
State Street | EUR | 935 | USD | 999 | 05/26/17 | (21 | ) |
State Street | EUR | 8,406 | USD | 8,990 | 05/26/17 | (176 | ) |
State Street | EUR | 400 | USD | 434 | 06/21/17 | (3 | ) |
State Street | GBP | 387 | USD | 500 | 05/03/17 | (1 | ) |
State Street | GBP | 1,100 | USD | 1,377 | 06/21/17 | (50 | ) |
State Street | GBP | 1,282 | USD | 1,579 | 06/21/17 | (83 | ) |
State Street | GBP | 509 | USD | 634 | 07/21/17 | (26 | ) |
State Street | GBP | 5,240 | USD | 6,556 | 07/21/17 | (246 | ) |
State Street | HKD | 910 | USD | 117 | 06/21/17 | — | |
State Street | NOK | 1,614 | USD | 191 | 06/21/17 | 3 | |
State Street | RUB | 157,500 | USD | 2,746 | 06/21/17 | 9 | |
State Street | SGD | 484 | USD | 343 | 06/21/17 | (4 | ) |
State Street | THB | 159,430 | USD | 4,636 | 06/21/17 | 28 | |
UBS | USD | 1,654 | PLN | 6,421 | 06/01/17 | — | |
UBS | USD | 4,800 | THB | 164,928 | 07/31/17 | (34 | ) |
UBS | KRW | 4,023,720 | USD | 3,600 | 05/30/17 | 63 | |
UBS | MXN | 8,243 | USD | 432 | 06/21/17 | (2 | ) |
UBS | MXN | 25,366 | USD | 1,332 | 06/21/17 | (5 | ) |
UBS | RUB | 51,507 | USD | 900 | 06/09/17 | 2 | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (318 | ) |
Total Return Swap Contracts (*) | ||||||
Amounts in thousands | ||||||
Notional | Termination | Fair Value | ||||
Underlying Reference Entity | Counterparty | Amount | Date | $ | ||
Markit IOS Index | JPMorgan Chase | USD | 25,272 | 01/12/45 | (91 | ) |
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å) | (91 | ) |
(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were based on 1
Month LIBOR rate plus a fee ranging from 3.500% to 4.000%.
See accompanying notes which are an integral part of the financial statements.
636 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Interest Rate Swap Contracts | ||||||||||
Amounts in thousands | ||||||||||
Termination | Fair Value | |||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | |||||
Barclays | USD | 75 | Three Month MIBOR | 1.627 | % | 03/27/19 | — | |||
Barclays | USD | 688 | Three Month MIBOR | 1.621 | % | 03/28/19 | (1 | ) | ||
Barclays | USD | 4,148 | Three Month MIBOR | 1.608 | % | 03/30/19 | (4 | ) | ||
Barclays | USD | 4,889 | Three Month MIBOR | 1.582 | % | 04/06/19 | (2 | ) | ||
Barclays | USD | 913 | Three Month MIBOR | 1.506 | % | 04/21/19 | 1 | |||
Barclays | USD | 14,741 | 1.598 | % | Three Month LIBOR | 04/28/19 | — | |||
Barclays | USD | 8,918 | 1.570 | % | Three Month LIBOR | 05/02/19 | (1 | ) | ||
Barclays | USD | 107,462 | Three Month MIBOR | 1.750 | % | 06/21/19 | (261 | ) | ||
Barclays | USD | 3,325 | Three Month MIBOR | 2.054 | % | 03/28/22 | (21 | ) | ||
Barclays | USD | 1,047 | Three Month MIBOR | 1.968 | % | 04/07/22 | (2 | ) | ||
Barclays | USD | 2,364 | Three Month MIBOR | 1.901 | % | 04/19/22 | — | |||
Barclays | USD | 1,283 | Three Month MIBOR | 1.835 | % | 04/20/22 | 8 | |||
Barclays | USD | 1,242 | Three Month MIBOR | 1.978 | % | 04/27/22 | — | |||
Barclays | USD | 8,662 | Three Month MIBOR | 2.200 | % | 06/21/22 | (97 | ) | ||
Barclays | USD | 1,164 | 2.398 | % | Three Month LIBOR | 03/27/27 | 16 | |||
Barclays | USD | 709 | 2.395 | % | Three Month LIBOR | 03/28/27 | 9 | |||
Barclays | USD | 4,781 | Three Month MIBOR | 2.335 | % | 03/29/27 | (37 | ) | ||
Barclays | USD | 1,687 | 2.339 | % | Three Month LIBOR | 03/30/27 | 14 | |||
Barclays | USD | 446 | 2.366 | % | Three Month LIBOR | 03/31/27 | 5 | |||
Barclays | USD | 5,885 | Three Month MIBOR | 2.375 | % | 03/31/27 | (68 | ) | ||
Barclays | USD | 5,289 | 2.362 | % | Three Month LIBOR | 04/03/27 | 54 | |||
Barclays | USD | 2,285 | Three Month MIBOR | 2.408 | % | 04/04/27 | (33 | ) | ||
Barclays | USD | 6,427 | 2.337 | % | Three Month LIBOR | 04/05/27 | 51 | |||
Barclays | USD | 386 | 2.325 | % | Three Month LIBOR | 04/06/27 | 3 | |||
Barclays | USD | 911 | 2.336 | % | Three Month LIBOR | 04/06/27 | 7 | |||
Barclays | USD | 1,089 | 2.338 | % | Three Month LIBOR | 04/06/27 | 9 | |||
Barclays | USD | 7,415 | Three Month MIBOR | 2.320 | % | 04/06/27 | (47 | ) | ||
Barclays | USD | 1,504 | 2.350 | % | Three Month LIBOR | 04/07/27 | 14 | |||
Barclays | USD | 2,874 | Three Month MIBOR | 2.331 | % | 04/10/27 | (21 | ) | ||
Barclays | USD | 2,899 | 2.300 | % | Three Month LIBOR | 04/11/27 | 13 | |||
Barclays | USD | 2,685 | Three Month MIBOR | 2.332 | % | 04/12/27 | (20 | ) | ||
Barclays | USD | 4,683 | Three Month MIBOR | 2.353 | % | 04/12/27 | (44 | ) | ||
Barclays | USD | 386 | 2.268 | % | Three Month LIBOR | 04/13/27 | 1 | |||
Barclays | USD | 705 | Three Month MIBOR | 2.259 | % | 04/18/27 | — | |||
Barclays | USD | 4,277 | 2.217 | % | Three Month LIBOR | 04/18/27 | (13 | ) | ||
Barclays | USD | 6,185 | 2.268 | % | Three Month LIBOR | 04/18/27 | 10 | |||
Barclays | USD | 6,185 | Three Month MIBOR | 2.267 | % | 04/18/27 | (9 | ) | ||
Barclays | USD | 9,278 | 2.249 | % | Three Month LIBOR | 04/18/27 | (1 | ) | ||
Barclays | USD | 699 | Three Month MIBOR | 2.209 | % | 04/19/27 | — | |||
Barclays | USD | 715 | 2.214 | % | Three Month LIBOR | 04/19/27 | (4 | ) | ||
Barclays | USD | 1,222 | 2.199 | % | Three Month LIBOR | 04/19/27 | (9 | ) | ||
Barclays | USD | 3,235 | Three Month MIBOR | 2.221 | % | 04/19/27 | — | |||
Barclays | USD | 5,662 | Three Month MIBOR | 2.193 | % | 04/19/27 | 43 | |||
Barclays | USD | 1,270 | Three Month MIBOR | 2.164 | % | 04/20/27 | — | |||
Barclays | USD | 1,154 | Three Month MIBOR | 2.182 | % | 04/21/27 | 7 | |||
Barclays | USD | 3,094 | Three Month MIBOR | 2.162 | % | 04/21/27 | 25 | |||
Barclays | USD | 7,811 | 2.165 | % | Three Month LIBOR | 04/21/27 | (62 | ) | ||
Barclays | USD | 1,266 | Three Month MIBOR | 2.183 | % | 04/24/27 | 8 | |||
Barclays | USD | 4,531 | Three Month MIBOR | 2.209 | % | 04/24/27 | 18 | |||
Barclays | USD | 1,519 | Three Month MIBOR | 2.203 | % | 04/25/27 | 7 | |||
Barclays | USD | 1,064 | 2.248 | % | Three Month LIBOR | 04/26/27 | — | |||
Barclays | USD | 2,639 | Three Month MIBOR | 2.278 | % | 04/27/27 | (6 | ) | ||
Barclays | USD | 471 | Three Month MIBOR | 2.305 | % | 04/28/27 | — | |||
Barclays | USD | 8,083 | Three Month MIBOR | 2.310 | % | 04/28/27 | (42 | ) |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 637
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Interest Rate Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Termination | Fair Value | ||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | ||||
Barclays | USD | 2,003 | Three Month MIBOR | 2.264 | % | 05/02/27 | — | ||
Barclays | USD | 4,003 | Three Month MIBOR | 2.272 | % | 05/02/27 | — | ||
Barclays | USD | 5,035 | 2.286 | % | Three Month LIBOR | 05/02/27 | 15 | ||
Barclays | USD | 19,100 | 2.500 | % | Three Month LIBOR | 06/21/27 | 388 | ||
Barclays | USD | 491 | 2.714 | % | Three Month LIBOR | 03/22/47 | 21 | ||
Barclays | USD | 429 | 2.672 | % | Three Month LIBOR | 03/23/47 | 15 | ||
Barclays | USD | 306 | 2.616 | % | Three Month LIBOR | 04/07/47 | 7 | ||
Barclays | USD | 1,685 | Three Month MIBOR | 2.560 | % | 04/28/47 | — | ||
Barclays | USD | 992 | Three Month MIBOR | 2.530 | % | 05/02/47 | — | ||
Barclays | USD | 11,319 | 2.700 | % | Three Month LIBOR | 06/21/47 | 434 | ||
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $53 (å) | 398 |
Credit Default Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Credit Indices | |||||||||
Fund (Pays)/ | |||||||||
Receives | Termination | Fair Value | |||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | ||||
CDX Emerging Markets Index | Bank of America | USD | 21,400 | 1.000 | % | 06/20/22 | (924 | ) | |
CDX Investment Grade Index | Bank of America | USD | 29,000 | 1.000 | % | 06/20/22 | 532 | ||
CDX NA High Yield Index | Bank of America | USD | 20,500 | 5.000 | % | 06/20/22 | (1,528 | ) | |
Total Fair Value on Open Credit Indices Premiums Paid (Received) - ($1,821) (å) | (1,920 | ) |
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Long-Term Investments | |||||||||||||||||
Asset-Backed Securities | $ | — | $ | 426 | $ | — | $ | — | $ | 426 | —* | ||||||
Corporate Bonds and Notes | — | 149,545 | — | — | 149,545 | 16.0 | |||||||||||
International Debt | — | 77,432 | — | — | 77,432 | 8.3 | |||||||||||
Loan Agreements | — | 177,742 | — | — | 177,742 | 19.0 | |||||||||||
Mortgage-Backed Securities | — | 75,328 | 507 | — | 75,835 | 8.1 | |||||||||||
Non-US Bonds | — | 76,458 | — | — | 76,458 | 8.2 | |||||||||||
United States Government Treasuries | — | 904 | — | — | 904 | 0.1 | |||||||||||
Common Stocks | |||||||||||||||||
Consumer Discretionary | 6,602 | 8,478 | 33 | — | 15,113 | 1.6 | |||||||||||
Consumer Staples | 11,405 | 6,001 | — | — | 17,406 | 1.9 | |||||||||||
Energy | 9,914 | 4,808 | — | — | 14,722 | 1.6 | |||||||||||
Financial Services | 31,671 | 21,880 | — | — | 53,551 | 5.7 | |||||||||||
Health Care | 13,947 | 8,440 | — | — | 22,387 | 2.4 | |||||||||||
Materials and Processing | 6,986 | 3,609 | 21 | — | 10,616 | 1.1 |
See accompanying notes which are an integral part of the financial statements.
638 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Producer Durables | 13,142 | 21,674 | — | — | 34,816 | 3.7 | ||||||||||||
Technology | 20,674 | 4,553 | 103 | — | 25,330 | 2.7 | ||||||||||||
Utilities | 21,419 | 11,085 | — | — | 32,504 | 3.5 | ||||||||||||
Preferred Stocks | 31,536 | — | — | — | 31,536 | 3.3 | ||||||||||||
Options Purchased | — | 1,687 | — | — | 1,687 | 0.2 | ||||||||||||
Warrants & Rights | — | — | 125 | — | 125 | —* | ||||||||||||
Short-Term Investments | — | 19,444 | 6,220 | 86,402 | 112,066 | 12.0 | ||||||||||||
Other Securities | — | — | — | 5,418 | 5,418 | 0.6 | ||||||||||||
Total Investments | 167,296 | 669,494 | 7,009 | 91,820 | 935,619 | 100.0 | ||||||||||||
Other Assets and Liabilities, Net | (—)* | |||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 2,965 | — | — | — | 2,965 | 0.3 | ||||||||||||
Foreign Currency Exchange Contracts | — | 1,200 | — | — | 1,200 | 0.1 | ||||||||||||
Interest Rate Swap Contracts | — | 1,203 | — | — | 1,203 | 0.1 | ||||||||||||
Credit Default Swap Contracts | — | 532 | — | — | 532 | 0.1 | ||||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (3,311 | ) | — | — | — | (3,311 | ) | (0.4 | ) | |||||||||
Options Written | — | (337 | ) | — | — | (337 | ) | (—)* | ||||||||||
Foreign Currency Exchange Contracts | (1 | ) | (1,517 | ) | — | — | (1,518 | ) | (0.2 | ) | ||||||||
Interest Rate Swap Contracts | — | (805 | ) | — | — | (805 | ) | (0.1 | ) | |||||||||
Credit Default Swap Contracts | — | (2,452 | ) | — | — | (2,452 | ) | (0.3 | ) | |||||||||
Total Return Swap Contracts | — | (91 | ) | — | — | (91 | ) | (—)* | ||||||||||
Total Other Financial Instruments** | $ | (347 | ) | $ | (2,267 | ) | $ | — | $ | — | $ | (2,614 | ) |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 639
Russell Investment Company
Multi-Strategy Income Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||||||||
Equity | Credit | Currency | Interest Rate | |||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | ||||||||
Location: Statement of Assets and Liabilities - Assets | ||||||||||||
Investments, at fair value* | $ | 197 | $ | — | $ | — | $ | 1,490 | ||||
Unrealized appreciation on foreign currency exchange contracts | — | — | 1,200 | — | ||||||||
Variation margin on futures contracts** | 2,630 | — | — | 335 | ||||||||
Interest rate swap contracts, at fair value | — | — | — | 1,203 | ||||||||
Credit default swap contracts, at fair value | — | 532 | — | — | ||||||||
Total | $ | 2,827 | $ | 532 | $ | 1,200 | $ | 3,028 | ||||
Location: Statement of Assets and Liabilities - Liabilities | ||||||||||||
Variation margin on futures contracts** | $ | 3,311 | $ | — | $ | — | $ | — | ||||
Unrealized depreciation on foreign currency exchange contracts | — | — | 1,518 | — | ||||||||
Options written, at fair value | 28 | — | — | 309 | ||||||||
Total return swap contracts, at fair value | — | — | — | 91 | ||||||||
Interest rate swap contracts, at fair value | — | — | — | 805 | ||||||||
Credit default swap contracts, at fair value | — | 2,452 | — | — | ||||||||
Total | $ | 3,339 | $ | 2,452 | $ | 1,518 | $ | 1,205 | ||||
Foreign | ||||||||||||
Equity | Credit | Currency | Interest Rate | |||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | ||||||||
Location: Statement of Operations - Net realized gain (loss) | ||||||||||||
Investments*** | $ | — | $ | — | $ | — | $ | 2,533 | ||||
Futures contracts | 8,210 | — | — | 270 | ||||||||
Options written | 560 | — | — | 1,626 | ||||||||
Total return swap contracts | — | — | — | (341 | ) | |||||||
Interest rate swap contracts | — | — | — | 83 | ||||||||
Credit default swap contracts | — | 1,301 | — | — | ||||||||
Foreign currency-related transactions**** | — | — | (165 | ) | — | |||||||
Total | $ | 8,770 | $ | 1,301 | $ | (165 | ) | $ | 4,171 | |||
Location: Statement of Operations - Net change in unrealized appreciation | ||||||||||||
(depreciation) | ||||||||||||
Investments***** | $ | — | $ | — | $ | — | $ | 546 | ||||
Futures contracts | (1,429 | ) | — | — | 398 | |||||||
Options written | 428 | — | — | (434 | ) | |||||||
Total return swap contracts | — | — | — | (91 | ) | |||||||
Interest rate swap contracts | — | — | — | 345 | ||||||||
Credit default swap contracts | — | (205 | ) | — | — | |||||||
Foreign currency-related transactions****** | — | — | (870 | ) | — | |||||||
Total | $ | (1,001 | ) | $ | (205 | ) | $ | (870 | ) | $ | 764 |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
640 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Balance Sheet Offsetting Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 1,687 | $ | — $ | 1,687 | |||
Securities on Loan* | Investments, at fair value | 5,211 | — | 5,211 | |||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 1,200 | — | 1,200 | |||||
Futures Contracts | Variation margin on futures contracts | 394 | — | 394 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 1,203 | — | 1,203 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 532 | — | 532 | |||||
Total Financial and Derivative Assets | 10,227 | — | 10,227 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (2,127 | ) | — | (2,127 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 8,100 | $ | — $ | 8,100 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Assets | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||
Bank of America | $ | 132 | $ | 132 | $ | — | $ | — | |||
Bank of Montreal | 82 | 82 | — | — | |||||||
BNP Paribas | 70 | 70 | — | — | |||||||
Citigroup | 1,407 | — | 1,407 | — | |||||||
Credit Suisse | 6 | — | 6 | — | |||||||
Goldman Sachs | 854 | — | 854 | — | |||||||
HSBC | 658 | 6 | 619 | 33 | |||||||
JPMorgan Chase | 2,240 | 459 | 467 | 1,314 | |||||||
Merrill Lynch | 1,096 | — | 1,096 | — | |||||||
Royal Bank of Canada | 72 | 72 | — | — | |||||||
Societe Generale | 763 | — | 763 | — | |||||||
Standard Chartered | 82 | 82 | — | — | |||||||
State Street | 573 | 206 | — | 367 | |||||||
UBS | 65 | 41 | — | 24 | |||||||
Total | $ | 8,100 | $ | 1,150 | $ | 5,212 | $ | 1,738 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 641
Russell Investment Company
Multi-Strategy Income Fund
Balance Sheet Offsetting Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 622 | $ | — $ | 622 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 1,518 | — | 1,518 | |||||
Options Written Contracts | Options written, at fair value | 337 | — | 337 | |||||
Total Return Swap Contracts | Total return swap contracts, at fair value | 91 | — | 91 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 805 | — | 805 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 2,452 | — | 2,452 | |||||
Total Financial and Derivative Liabilities | 5,825 | — | 5,825 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (3,879 | ) | — | (3,879 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 1,946 | $ | — $ | 1,946 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 330 | $ | 132 | $ | — | $ 198 | ||
Bank of Montreal | 138 | 82 | — | 56 | |||||
BNP Paribas | 93 | 70 | — | 23 | |||||
Citigroup | 53 | — | — | 53 | |||||
HSBC | 6 | 6 | — | — | |||||
JPMorgan Chase | 459 | 459 | — | — | |||||
Royal Bank of Canada | 93 | 72 | — | 21 | |||||
Standard Chartered | 92 | 82 | — | 10 | |||||
State Street | 641 | 206 | — | 435 | |||||
UBS | 41 | 41 | — | — | |||||
Total | $ | 1,946 | $ | 1,150 | $ | — | $ 796 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
642 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 913,841 |
Investments, at fair value(*)(>) | 935,619 | |
Cash (restricted)(a)(b) | 14,006 | |
Foreign currency holdings(^) | 11,066 | |
Unrealized appreciation on foreign currency exchange contracts | 1,200 | |
Receivables: | ||
Dividends and interest | 8,053 | |
Dividends from affiliated funds | 82 | |
Investments sold | 122,471 | |
Fund shares sold | 1,364 | |
Variation margin on futures contracts | 394 | |
Prepaid expenses | 9 | |
Interest rate swap contracts, at fair value(•) | 1,203 | |
Credit default swap contracts, at fair value(+) | 532 | |
Total assets | 1,095,999 | |
Liabilities | ||
Payables: | ||
Due to custodian | 392 | |
Due to broker (c) | 346 | |
Investments purchased | 146,774 | |
Fund shares redeemed | 657 | |
Accrued fees to affiliates | 567 | |
Other accrued expenses | 676 | |
Variation margin on futures contracts | 622 | |
Deferred capital gain tax liability | 26 | |
Unrealized depreciation on foreign currency exchange contracts | 1,518 | |
Options written, at fair value(x) | 337 | |
Payable upon return of securities loaned | 5,418 | |
Total return swap contracts, at fair value(8) | 91 | |
Interest rate swap contracts, at fair value(•) | 805 | |
Credit default swap contracts, at fair value(+) | 2,452 | |
Total liabilities | 160,681 | |
Commitments and Contingencies (1) | ||
Net Assets | $ | 935,318 |
(1) See note 9 in the Notes to Financial Statements for detailed description of commitments and contingencies. |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 643
Russell Investment Company
Multi-Strategy Income Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (116 | ) |
Accumulated net realized gain (loss) | (1,093 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 21,752 | ||
Futures contracts | (346 | ) | |
Options written | 514 | ||
Total return swap contracts | (91 | ) | |
Interest rate swap contracts | 345 | ||
Credit default swap contracts | (99 | ) | |
Foreign currency-related transactions | (306 | ) | |
Shares of beneficial interest | 935 | ||
Additional paid-in capital | 913,823 | ||
Net Assets | $ | 935,318 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 9.99 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | $ | 10.38 | |
Class A — Net assets | $ | 11,899,429 | |
Class A — Shares outstanding ($.01 par value) | 1,191,612 | ||
Net asset value per share: Class C(#) | $ | 9.96 | |
Class C — Net assets | $ | 7,695,800 | |
Class C — Shares outstanding ($.01 par value) | 772,949 | ||
Net asset value per share: Class E (#) | $ | 10.10 | |
Class E — Net assets | $ | 85,694 | |
Class E — Shares outstanding ($.01 par value) | 8,485 | ||
Net asset value per share: Class S (#) | $ | 10.00 | |
Class S — Net assets | $ | 661,761,892 | |
Class S — Shares outstanding ($.01 par value) | 66,158,856 | ||
Net asset value per share: Class T(#) | $ | 10.00 | |
Class T — Net assets | $ | 2,275,003 | |
Class T — Shares outstanding ($.01 par value) | 227,556 | ||
Net asset value per share: Class Y(#) | $ | 10.01 | |
Class Y — Net assets | $ | 251,600,248 | |
Class Y — Shares outstanding ($.01 par value) | 25,137,690 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 11,065 | |
(x) Premiums received on options written | $ | 851 | |
(*) Securities on loan included in investments | $ | 5,211 | |
(+) Credit default swap contracts - premiums paid (received) | $ | (1,821 | ) |
(•) Interest rate swap contracts - premiums paid (received) | $ | 53 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 91,820 | |
(8) Total return swap contracts - premiums paid (received) | $ | — | |
(a) Cash Collateral for Futures | $ | 7,729 | |
(b) Cash Collateral for Swaps | $ | 6,277 | |
(c) Due to Broker for Swaps | $ | 346 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
644 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 4,391 | |
Dividends from affiliated funds | 331 | ||
Interest | 15,086 | ||
Securities lending income (net) | 25 | ||
Securities lending income from affiliated funds (net) | 12 | ||
Total investment income | 19,845 | ||
Expenses | |||
Advisory fees | 3,290 | ||
Administrative fees | 212 | ||
Custodian fees | 617 | ||
Distribution fees - Class A | 13 | ||
Distribution fees - Class C | 27 | ||
Transfer agent fees - Class A | 11 | ||
Transfer agent fees - Class C | 7 | ||
Transfer agent fees - Class E | 10 | ||
Transfer agent fees - Class S . | 589 | ||
Transfer agent fees - Class T | —** | ||
Transfer agent fees - Class Y | 6 | ||
Professional fees | 46 | ||
Registration fees | 78 | ||
Shareholder servicing fees - Class C | 9 | ||
Shareholder servicing fees - Class E | 13 | ||
Trustees’ fees | 8 | ||
Printing fees | 11 | ||
Miscellaneous | 15 | ||
Expenses before reductions | 4,962 | ||
Expense reductions | (1,426 | ) | |
Net expenses | 3,536 | ||
Net investment income (loss) | 16,309 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | (3,424 | ) | |
Futures contracts | 8,480 | ||
Options written | 2,186 | ||
Total return swap contracts | (341 | ) | |
Interest rate swap contracts | 83 | ||
Credit default swap contracts | 1,301 | ||
Foreign currency-related transactions | (110 | ) | |
Net realized gain (loss) | 8,175 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 25,153 | ||
Futures contracts | (1,031 | ) | |
Options written | (6 | ) | |
Total return swap contracts | (91 | ) | |
Interest rate swap contracts | 345 | ||
Credit default swap contracts | (205 | ) | |
Foreign currency-related transactions | (828 | ) | |
Net change in unrealized appreciation (depreciation) | 23,337 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 645
Russell Investment Company
Multi-Strategy Income Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Net realized and unrealized gain (loss) | 31,512 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 47,821 |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
646 Multi-Strategy Income Fund
Russell Investment Company
Multi-Strategy Income Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 16,309 | $ | 15,652 | ||
Net realized gain (loss) | 8,175 | (7,119 | ) | |||
Net change in unrealized appreciation (depreciation) | 23,337 | 9,348 | ||||
Net increase (decrease) in net assets from operations | 47,821 | 17,881 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (211 | ) | (219 | ) | ||
Class C | (117 | ) | (139 | ) | ||
Class E . | (222 | ) | (345 | ) | ||
Class S | (12,508 | ) | (8,900 | ) | ||
Class T | (1 | ) | — | |||
Class Y | (5,549 | ) | (4,719 | ) | ||
Net decrease in net assets from distributions | (18,608 | ) | (14,322 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 53,541 | 573,338 | ||||
Total Net Increase (Decrease) in Net Assets | 82,754 | 576,897 | ||||
Net Assets | ||||||
Beginning of period | 852,564 | 275,667 | ||||
End of period | $ | 935,318 | $ | 852,564 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (116 | ) | $ | 2,183 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 647
Russell Investment Company
Multi-Strategy Income Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 204 | $ | 2,001 | 826 | $ | 7,810 | ||||||
Proceeds from reinvestment of distributions | 18 | 178 | 21 | 199 | ||||||||
Payments for shares redeemed | (71 | ) | (687 | ) | (110 | ) | (1,039 | ) | ||||
Net increase (decrease) | 151 | 1,492 | 737 | 6,970 | ||||||||
Class C | ||||||||||||
Proceeds from shares sold | 90 | 875 | 540 | 5,100 | ||||||||
Proceeds from reinvestment of distributions | 11 | 112 | 14 | 136 | ||||||||
Payments for shares redeemed | (79 | ) | (768 | ) | (62 | ) | (589 | ) | ||||
Net increase (decrease) | 22 | 219 | 492 | 4,647 | ||||||||
Class E | ||||||||||||
Proceeds from shares sold | 65 | 626 | 1,980 | 19,092 | ||||||||
Proceeds from reinvestment of distributions | 23 | 221 | 36 | 345 | ||||||||
Payments for shares redeemed | (2,520 | ) | (24,540 | ) | (330 | ) | (3,155 | ) | ||||
Net increase (decrease) | (2,432 | ) | (23,693 | ) | 1,686 | 16,282 | ||||||
Class S | ||||||||||||
Proceeds from shares sold | 17,558 | 172,882 | 48,360 | 464,565 | ||||||||
Proceeds from reinvestment of distributions | 1,276 | 12,472 | 936 | 8,874 | ||||||||
Payments for shares redeemed | (9,721 | ) | (95,479 | ) | (9,363 | ) | (89,008 | ) | ||||
Net increase (decrease) | 9,113 | 89,875 | 39,933 | 384,431 | ||||||||
Class T | ||||||||||||
Proceeds from shares sold | 228 | 2,252 | — | — | ||||||||
Proceeds from reinvestment of distributions | —** | 1 | — | — | ||||||||
Payments for shares redeemed | (—)** | (1 | ) | — | — | |||||||
Net increase (decrease) | 228 | 2,252 | — | — | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 2,133 | 20,809 | 18,832 | 184,667 | ||||||||
Proceeds from reinvestment of distributions | 568 | 5,549 | 499 | 4,719 | ||||||||
Payments for shares redeemed | (4,356 | ) | (42,962 | ) | (3,022 | ) | (28,378 | ) | ||||
Net increase (decrease) | (1,655 | ) | (16,604 | ) | 16,309 | 161,008 | ||||||
Total increase (decrease) | 5,427 | $ | 53,541 | 59,157 | $ | 573,338 |
** Less than 500 shares.
(1) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
See accompanying notes which are an integral part of the financial statements.
648 Multi-Strategy Income Fund
(This page intentionally left blank)
Russell Investment Company
Multi-Strategy Income Fund
Financial Highlights — For the Period Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | ||||||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | ||||||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | $ | |||||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Total Distributions | |||||||||||||
Class A | ||||||||||||||||||
April 30, 2017* | 9.66 | .17 | .35 | .52 | (.19 | ) | (.19 | ) | ||||||||||
October 31, 2016 | 9.52 | .35 | .12 | .47 | (.33 | ) | (.33 | ) | ||||||||||
October 31, 2015(6) | 10.00 | .16 | (.50 | ) | (.34 | ) | (.14 | ) | (.14 | ) | ||||||||
Class C | ||||||||||||||||||
April 30, 2017* | 9.64 | .13 | .34 | .47 | (.15 | ) | (.15 | ) | ||||||||||
October 31, 2016 | 9.51 | .27 | .13 | .40 | (.27 | ) | (.27 | ) | ||||||||||
October 31, 2015(6) | 10.00 | .12 | (.49 | ) | (.37 | ) | (.12 | ) | (.12 | ) | ||||||||
Class E | ||||||||||||||||||
April 30, 2017* | 9.67 | .19 | .33 | .52 | (.09 | ) | (.09 | ) | ||||||||||
October 31, 2016 | 9.53 | .34 | .13 | .47 | (.33 | ) | (.33 | ) | ||||||||||
October 31, 2015(6) | 10.00 | .15 | (.48 | ) | (.33 | ) | (.14 | ) | (.14 | ) | ||||||||
Class S | ||||||||||||||||||
April 30, 2017* | 9.68 | .18 | .34 | .52 | (.20 | ) | (.20 | ) | ||||||||||
October 31, 2016 | 9.53 | .36 | .14 | .50 | (.35 | ) | (.35 | ) | ||||||||||
October 31, 2015(6) | 10.00 | .17 | (.50 | ) | (.33 | ) | (.14 | ) | (.14 | ) | ||||||||
Class T | ||||||||||||||||||
April 30, 2017(10) | 10.00 | (.01 | ) | .12 | .11 | (.11 | ) | (.11 | ) | |||||||||
Class Y | ||||||||||||||||||
April 30, 2017* | 9.68 | .19 | .35 | .54 | (.21 | ) | (.21 | ) | ||||||||||
October 31, 2016 | 9.54 | .39 | .12 | .51 | (.37 | ) | (.37 | ) | ||||||||||
October 31, 2015(6) | 10.00 | .18 | (.49 | ) | (.31 | ) | (.15 | ) | (.15 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
650 Multi-Strategy Income Fund
% | % | % | |||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||
End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||
Period | Return(b)(c) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | ||||||||
9.99 | 5.35 | 11,899 | 1.43 | 1.10 | 3.45 | 79 | |||||||||
9.66 | 5.08 | 10,052 | 1.44 | 1.10 | 3.70 | 67 | |||||||||
9.52 | (3.40 | ) | 2,887 | 1.44 | 1.10 | 3.35 | 38 | ||||||||
9.96 | 4.86 | 7,696 | 2.18 | 1.85 | 2.73 | 79 | |||||||||
9.64 | 4.34 | 7,233 | 2.19 | 1.85 | 2.92 | 67 | |||||||||
9.51 | (3.71 | ) | 2,456 | 2.19 | 1.85 | 2.59 | 38 | ||||||||
10.10 | 5.33 | 86 | 1.44 | 1.09 | 3.88 | 79 | |||||||||
9.67 | 5.06 | 23,603 | 1.44 | 1.10 | 3.57 | 67 | |||||||||
9.53 | (3.25 | ) | 7,187 | 1.43 | 1.10 | 3.31 | 38 | ||||||||
10.00 | 5.47 | 661,762 | 1.17 | .85 | 3.69 | 79 | |||||||||
9.68 | 5.43 | 552,190 | 1.19 | .85 | 3.81 | 67 | |||||||||
9.53 | (3.27 | ) | 163,159 | 1.18 | .85 | 3.50 | 38 | ||||||||
10.00 | 1.01 | 2,275 | 1.08 | .75 | (.54 | ) | 79 | ||||||||
10.01 | 5.56 | 251,600 | .98 | .65 | 3.96 | 79 | |||||||||
9.68 | 5.51 | 259,486 | 1.00 | .65 | 4.16 | 67 | |||||||||
9.54 | (3.09 | ) | 99,978 | .98 | .65 | 3.56 | 38 |
See accompanying notes which are an integral part of the financial statements.
Multi-Strategy Income Fund 651
Russell Investment Company
Multi-Strategy Income Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 408,714 |
Administration fees | 38,108 | |
Distribution fees | 7,024 | |
Shareholder servicing fees | 1,573 | |
Transfer agent fees | 111,989 | |
$ | 567,408 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Collateral Fund | $ | 1,655 | $ | 24,245 | $ | 20,482 | $ | — | $ — | $ | 5,418 | $ | 12 | $ | — | |||
U.S. Cash Management Fund | 57,681 | 714,679 | 685,951 | — | (7) | 86,402 | 331 | — | ||||||||||
$ | 59,336 | $ | 738,924 | $ | 706,433 | $ | — | $ (7) | $ | 91,820 | $ | 343 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 915,332,917 | |||
Unrealized Appreciation | $ | 29,627,531 | |||
Unrealized Depreciation | (9,341,540 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 20,285,991 |
See accompanying notes which are an integral part of the financial statements.
652 Multi-Strategy Income Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | ||||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | ||||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | ||||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | ||||||
useful in comparing ongoing costs only, and will not help you | |||||||
Example | determine the relative total costs of owning different funds. In | ||||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | ||||||
transaction costs, and (2) ongoing costs, including advisory and | would have been higher. | ||||||
administrative fees; and other Fund expenses. The Example is | Hypothetical | ||||||
intended to help you understand your ongoing costs (in dollars) | Performance (5% | ||||||
of investing in the Fund and to compare these costs with the | Actual | return before | |||||
ongoing costs of investing in other mutual funds. The Example | Class S | Performance | expenses) | ||||
Beginning Account Value | |||||||
is based on an investment of $1,000 invested at the beginning of | March 7, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
the period and held for the entire period indicated, which for this | Ending Account Value | ||||||
Fund is from March 7, 2017 to April 30, 2017. | April 30, 2017 | $ | 1,020.20 | $ | 1,019.44 | ||
Expenses Paid During Period* | $ | 1.61 | $ | 5.41 | |||
Actual Expenses | |||||||
The information in the table under the heading “Actual | * Expenses are equal to the Fund's annualized expense ratio of 1.08% | ||||||
(representing the 54-day period annualized), multiplied by the average | |||||||
Performance” provides information about actual account values | account value over the period, multiplied by 54/365 (to reflect the period since | ||||||
and actual expenses. You may use the information in this column, | commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
together with the amount you invested, to estimate the expenses | Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
that you paid over the period. Simply divide your account value by | Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
1.08% (representing the six-month period annualized), multiplied by the | |||||||
$1,000 (for example, an $8,600 account value divided by $1,000 | average account value over the period, multiplied by 181/365 (to reflect the | ||||||
= 8.6), then multiply the result by the number in the first column | on-half year period). | ||||||
in the row entitled “Expenses Paid During Period” to estimate | |||||||
the expenses you paid on your account during this period. | Hypothetical | ||||||
Performance (5% | |||||||
Actual | return before | ||||||
Hypothetical Example for Comparison Purposes | Class T | Performance | expenses) | ||||
The information in the table under the heading “Hypothetical | Beginning Account Value | ||||||
Performance (5% return before expenses)” provides information | March 17, 2017 | $ | 1,000.00 | $ | 1,000.00 | ||
about hypothetical account values and hypothetical expenses | Ending Account Value | ||||||
April 30, 2017 | $ | 1,012.10 | $ | 1,019.93 | |||
based on the Fund’s actual expense ratio and an assumed rate of | Expenses Paid During Period* | $ | 1.22 | $ | 4.91 | ||
return of 5% per year before expenses, which is not the Fund’s | |||||||
actual return. The hypothetical account values and expenses | * Expenses are equal to the Fund's annualized expense ratio of 0.98% | ||||||
may not be used to estimate the actual ending account balance or | (representing the 45-day period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 45/365 (to reflect the period since | |||||||
expenses you paid for the period. You may use this information | commencement of operations). May reflect amounts waived and/or reimbursed. | ||||||
to compare the ongoing costs of investing in the Fund and other | Without any waivers and/or reimbursements, expenses would have been higher. | ||||||
funds. To do so, compare this 5% hypothetical example with the | Hypothetical expenses are equal to the Fund’s annualized expense ratio of | ||||||
5% hypothetical examples that appear in the shareholder reports | 0.98% (representing the six-month period annualized), multiplied by the | ||||||
average account value over the period, multiplied by 181/365 (to reflect the | |||||||
of other funds. | on-half year period). |
Multi-Asset Growth Strategy Fund 653
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Long-Term Investments - 41.3% | Charter Communications Operating LLC | ||||||||||
Asset-Backed Securities - 0.0% | / Charter Communications Operating | ||||||||||
Wendy's Funding LLC | Capital | ||||||||||
Series 2015-1A Class A2I | Series WI | ||||||||||
3.371% due 06/15/45 (Þ) | 236 | 238 | 4.908% due 07/23/25 | 680 | 729 | ||||||
Cheniere Corpus Christi Holdings, LLC | |||||||||||
Corporate Bonds and Notes - 5.5% | 5.875% due 03/31/25 (Þ) | 230 | 245 | ||||||||
ADT Corp. (The) | CIT Group, Inc. | ||||||||||
4.875% due 07/15/32 (Þ) | 400 | 349 | 5.000% due 08/01/23 | 600 | 645 | ||||||
Aircastle, Ltd. | Citigroup, Inc. | ||||||||||
4.125% due 05/01/24 | 635 | 646 | 3.200% due 10/21/26 | 420 | 406 | ||||||
Alcoa, Inc. | Clearwire Communications LLC / | ||||||||||
5.720% due 02/23/19 | 198 | 210 | Clearwire Finance, Inc. | ||||||||
Alexandria Real Estate Equities, Inc. | 8.250% due 12/01/40 (Þ) | 280 | 288 | ||||||||
3.950% due 01/15/28 | 230 | 232 | Continental Resources, Inc. | ||||||||
Ally Financial, Inc. | 5.000% due 09/15/22 | 235 | 237 | ||||||||
4.125% due 03/30/20 | 180 | 184 | Crown Castle International Corp. | ||||||||
7.500% due 09/15/20 | 110 | 124 | 4.750% due 05/15/47 | 155 | 156 | ||||||
4.625% due 03/30/25 | 440 | 434 | CSC Holdings LLC | ||||||||
Altice US Finance I Corp. | 5.500% due 04/15/27 (Þ) | 125 | 129 | ||||||||
5.500% due 05/15/26 (Þ) | 200 | 207 | Delta Air Lines, Inc. | ||||||||
American Airlines Pass-Through Trust | 3.625% due 03/15/22 | 640 | 657 | ||||||||
Diamond 1 Finance Corp. / Diamond 2 | |||||||||||
Series 2016-2 Class A | Finance Corp | ||||||||||
3.650% due 06/15/28 | 160 | 161 | 5.875% due 06/15/21 (Þ) | 125 | 133 | ||||||
Series 2017-1B Class B | 7.125% due 06/15/24 (Þ) | 125 | 138 | ||||||||
4.950% due 02/15/25 | 315 | 321 | Discover Financial Services | ||||||||
Antero Resources Corp. | 4.100% due 02/09/27 | 405 | 407 | ||||||||
Series WI | Domtar Corp. | ||||||||||
5.625% due 06/01/23 | 400 | 412 | 6.250% due 09/01/42 | 180 | 181 | ||||||
Arconic, Inc. | Dresdner Funding Trust I | ||||||||||
5.400% due 04/15/21 | 370 | 397 | Series REGS | ||||||||
Bank of America Corp. | 8.151% due 06/30/31 | 370 | 439 | ||||||||
3.248% due 10/21/27 | 340 | 327 | Enbridge Energy Partners, LP | ||||||||
4.244% due 04/24/38 | 245 | 245 | 7.375% due 10/15/45 | 260 | 333 | ||||||
Boardwalk Pipelines LP | EnLink Midstream Partners, LP | ||||||||||
5.950% due 06/01/26 | 285 | 319 | 2.700% due 04/01/19 | 400 | 401 | ||||||
Brixmor Operating Partnership, LP | Essex Portfolio LP | ||||||||||
3.875% due 08/15/22 | 475 | 488 | 3.625% due 05/01/27 | 395 | 393 | ||||||
Broadcom Corp. / Broadcom Cayman | Express Scripts Holding Co. | ||||||||||
Finance, Ltd. | |||||||||||
3.875% due 01/15/27 (Þ) | 240 | 244 | 3.000% due 07/15/23 | 500 | 491 | ||||||
BWAY Holding Co. | Federal Realty Investment Trust | ||||||||||
5.500% due 04/15/24 (Þ) | 116 | 117 | 2.550% due 01/15/21 | 320 | 321 | ||||||
Carpenter Technology Corp. | Freeport-McMoRan, Inc. | ||||||||||
4.450% due 03/01/23 | 216 | 221 | 5.450% due 03/15/43 | 90 | 77 | ||||||
CBS Radio, Inc. | Gartner, Inc. | ||||||||||
7.250% due 11/01/24 (Þ) | 250 | 272 | 5.125% due 04/01/25 (Þ) | 56 | 58 | ||||||
Cedar Fair LP/Canada's Wonderland | Goldman Sachs Group, Inc. (The) | ||||||||||
Co./Magnum Management | 2.277% due 04/26/22 (Ê) | 475 | 478 | ||||||||
Corp./Mellennium Operations LLC | Goodyear Tire & Rubber Co. | ||||||||||
5.375% due 04/15/27 (Þ) | 40 | 41 | 5.000% due 05/31/26 | 300 | 308 | ||||||
Centene Corp. | 4.875% due 03/15/27 | 210 | 210 | ||||||||
4.750% due 01/15/25 | 250 | 254 | Gray Television, Inc. | ||||||||
CenturyLink, Inc. | 5.125% due 10/15/24 (Þ) | 125 | 125 | ||||||||
Series T | HCA, Inc. | ||||||||||
5.800% due 03/15/22 | 650 | 680 | 6.500% due 02/15/20 | 500 | 549 | ||||||
4.750% due 05/01/23 | 550 | 578 |
See accompanying notes which are an integral part of the financial statements.
654 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
5.000% due 03/15/24 | 40 | 42 | 4.750% due 06/01/20 | 300 | 305 | ||||
Hess Corp. | Time Warner Cable LLC | ||||||||
3.500% due 07/15/24 | 130 | 126 | 6.550% due 05/01/37 | 700 | 814 | ||||
4.300% due 04/01/27 | 150 | 150 | T-Mobile USA, Inc. | ||||||
Icahn Enterprises LP / Icahn Enterprises | 6.375% due 03/01/25 | 500 | 546 | ||||||
Finance Corp. | Toll Brothers Finance Corp. | ||||||||
6.250% due 02/01/22 (Þ) | 125 | 130 | 4.375% due 04/15/23 | 290 | 297 | ||||
6.750% due 02/01/24 (Þ) | 125 | 130 | Vulcan Materials Co. | ||||||
JPMorgan Chase & Co. | 4.500% due 04/01/25 | 430 | 454 | ||||||
2.383% due 10/24/23 (Ê) | 625 | 636 | WEA Finance LLC / Westfield UK & | ||||||
Kinder Morgan Energy Partners, LP | Europe Finance PLC | ||||||||
5.625% due 09/01/41 | 50 | 52 | 3.250% due 10/05/20 (Þ) | 310 | 317 | ||||
4.700% due 11/01/42 | 440 | 413 | Western Gas Partners, LP | ||||||
Krayton Polymars LLC / Krayton | 5.450% due 04/01/44 | 230 | 239 | ||||||
Polymars Capital Co. | Williams Partners LP | ||||||||
7.000% due 04/15/25 (Þ) | 14 | 15 | 4.500% due 11/15/23 | 230 | 243 | ||||
Limited Brands, Inc. | Zayo Group LLC / Zayo Capital Co. | ||||||||
5.625% due 02/15/22 | 150 | 158 | 5.750% due 01/15/27 (Þ) | 250 | 265 | ||||
Marathon Oil Corp. | |||||||||
3.850% due 06/01/25 | 390 | 387 | 27,828 | ||||||
International Debt - 5.0% | |||||||||
MPLX, LP | 1011778 B.C. Unlimited Liability Co. | ||||||||
4.875% due 06/01/25 | 210 | 223 | 1st Lien Term Loan | ||||||
Series WI | 3.250% due 02/17/24 | 892 | 893 | ||||||
4.500% due 07/15/23 | 400 | 422 | 3.397% due 02/17/24 | 605 | 606 | ||||
4.875% due 12/01/24 | 70 | 75 | Actavis Funding SCS | ||||||
Nabors Industries, Inc. | 4.550% due 03/15/35 | 440 | 444 | ||||||
5.500% due 01/15/23 (Þ) | 230 | 233 | Adani Ports and Special Economic Zone, | ||||||
Nexstar Escrow Corp. | Ltd. | ||||||||
5.625% due 08/01/24 (Þ) | 125 | 128 | Series REGS | ||||||
ONEOK, Inc. | 3.500% due 07/29/20 | 450 | 453 | ||||||
4.250% due 02/01/22 | 340 | 352 | AerCap Ireland Capital, Ltd. / AerCap | ||||||
Global Aviation Trust | |||||||||
Plains Finance All American Corp. Pipeline, LP / PAA | 3.950% due 02/01/22 | 250 | 259 | ||||||
2.850% due 01/31/23 | 140 | 136 | 4.625% due 07/01/22 | 550 | 585 | ||||
3.850% due 10/15/23 | 100 | 101 | Alibaba Group Holding, Ltd. | ||||||
4.500% due 12/15/26 | 80 | 83 | Series WI | ||||||
Rackspace Hosting, Inc. | 3.600% due 11/28/24 | 615 | 624 | ||||||
4.656% due 10/26/23 (Ê) | 499 | 502 | AMC Entertainment Holdings, Inc. | ||||||
Range Resources Corp. | Series REGs | ||||||||
5.000% due 08/15/22 (Þ) | 380 | 376 | 6.375% due 11/15/24 | 200 | 275 | ||||
Series WI | Anglo American Capital PLC | ||||||||
4.875% due 05/15/25 | 250 | 240 | 9.375% due 04/08/19 (Þ) | 200 | 225 | ||||
Rite Aid Corp. | Barclays Bank | ||||||||
6.125% due 04/01/23 (Þ) | 430 | 426 | 5.200% due 05/12/26 | 310 | 322 | ||||
Sabine Pass Liquefaction LLC | Barclays Bank PLC | ||||||||
5.750% due 05/15/24 | 795 | 879 | 6.278% due 12/29/49 (ƒ) | 300 | 328 | ||||
SBA Tower Trust | BBVA Bancomer SA | ||||||||
3.168% due 04/15/22 (Þ) | 600 | 602 | Series REGS | ||||||
Scientific Games International, Inc. | 6.500% due 03/10/21 | 220 | 240 | ||||||
6.625% due 05/15/21 | 75 | 72 | Braskem Finance, Ltd. | ||||||
5.037% due 10/01/21 (Ê) | 1,000 | 1,015 | Series REGS | ||||||
Southern Co. | 5.750% due 04/15/21 | 230 | 242 | ||||||
2.950% due 07/01/23 | 160 | 159 | CEMEX SAB de CV | ||||||
Sprint Communications, Inc. | 7.750% due 04/16/26 (Þ) | 300 | 342 | ||||||
9.000% due 11/15/18 (Þ) | 80 | 88 | CRCC Yupeng, Ltd. | ||||||
Tenet Healthcare Corp. | 3.950% due 02/28/49 (ƒ) | 390 | 397 | ||||||
CSCEC Finance (Cayman) II Co. |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 655
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
2.700% due 06/14/21 | 285 | 283 | MTN (Mauritius) Investment, Ltd. | |||||||
Enbridge Inc. | Series REGS | |||||||||
Series 16-A | 6.500% due 10/13/26 | 290 | 298 | |||||||
6.000% due 01/15/77 | 315 | 321 | National Westminster Bank | |||||||
FMG Resources, Ltd. | 1.313% due 11/29/49 | 20 | 16 | |||||||
9.750% due 03/01/22 (Þ) | 945 | 1,087 | Nationwide Building Society | |||||||
Four Seasons Hotels, Ltd. 1st Lien Term | 4.000% due 09/14/26 (Þ) | 330 | 326 | |||||||
Loan B | NXP BV / NXP Funding LLC | |||||||||
4.147% due 06/27/20 (Ê) | 499 | 504 | 4.625% due 06/15/22 (Þ) | 420 | 450 | |||||
Gazprom OAO Via Gaz Capital SA | 3.875% due 09/01/22 (Þ) | 200 | 208 | |||||||
Series REGS | Open Text Corp. | |||||||||
4.950% due 02/06/28 | 200 | 201 | 5.875% due 06/01/26 (Þ) | 250 | 267 | |||||
Goldman Sachs Group, Inc. (The) | Perrigo Finance Unlimited Co. | |||||||||
5.500% due 10/12/21 | 225 | 337 | 3.500% due 03/15/21 | 310 | 318 | |||||
Governor and Company of the Bank of | ||||||||||
Ireland | Petrobras Global Finance BV | |||||||||
7.375% due 12/29/49 | 200 | 238 | 6.125% due 01/17/22 | 60 | 63 | |||||
GTL Trade Finance, Inc. | Priceline Group, Inc. | |||||||||
Series REGS | 2.375% due 09/23/24 | 630 | 737 | |||||||
5.893% due 04/29/24 | 150 | 153 | Prudential PLC | |||||||
Huntsman International LLC | 7.750% due 01/29/49 (ƒ) | 230 | 237 | |||||||
Series WI | Quintilies IMS, Inc. | |||||||||
4.250% due 04/01/25 | 330 | 378 | Series REGS | |||||||
Hyperion Insurance Group, Ltd. Term | 3.250% due 03/15/25 | 560 | 612 | |||||||
Loan B | Ritchie Bros. Auctioneers, Inc. | |||||||||
5.500% due 04/29/22 (Ê) | 250 | 251 | 5.375% due 01/15/25 (Þ) | 250 | 258 | |||||
ING Groep NV | Rosneft Oil Co. via Rosneft International | |||||||||
2.302% due 03/29/22 (Ê) | 315 | 318 | Finance, Ltd. | |||||||
Intesa Sanpaolo SpA | Series REGS | |||||||||
5.017% due 06/26/24 (Þ) | 510 | 486 | 4.199% due 03/06/22 | 250 | 250 | |||||
Korea Development Bank | Royal Bank of Scotland Group PLC | |||||||||
1.757% due 02/27/22 (Ê) | 640 | 640 | 7.648% due 09/30/49 (ƒ) | 30 | 36 | |||||
Level 3 Financing, Inc. Term Loan B | Sappi Papier Holding GMBH | |||||||||
3.241% due 02/22/24 (Ê) | 750 | 752 | Series REGS | |||||||
Lithuania Government International | 7.500% due 06/15/32 | 90 | 92 | |||||||
Bond | Schaeffler Finance BV | |||||||||
Series REGS | 4.250% due 05/15/21 (Þ) | 560 | 571 | |||||||
7.375% due 02/11/20 | 210 | 239 | Seagate HDD Cayman | |||||||
Mallinckrodt International Finance SA | 4.250% due 03/01/22 (Þ) | 260 | 259 | |||||||
5.625% due 10/15/23 (Þ) | 250 | 239 | Severstal PJSC | |||||||
Mallinckrodt International Finance SA | 5.900% due 10/17/22 | 210 | 230 | |||||||
1st Lien Term Loan B | SFR Group SA | |||||||||
3.897% due 09/24/24 | 250 | 250 | 6.250% due 05/15/24 (Þ) | 190 | 197 | |||||
Marfrig Holdings Europe BV | Shire Acquisitions Investments Ireland | |||||||||
Series REGS | DAC | |||||||||
8.375% due 05/09/18 | 300 | 312 | 2.400% due 09/23/21 | 245 | 242 | |||||
Millicom International Cellular SA | Southern Power Co. | |||||||||
6.000% due 03/15/25 (Þ) | 200 | 211 | 1.850% due 06/20/26 | 220 | 241 | |||||
MMC Norilsk Nickel OJSC via MMC | SS&C Technologies, Inc. 1st Lien Term | |||||||||
Finance DAC | Loan B2 | |||||||||
Series REGS | 3.307% due 07/08/22 | 39 | 39 | |||||||
5.550% due 10/28/20 | 230 | 246 | Standard Chartered PLC | |||||||
Morgan Stanley | 7.750% due 12/29/49 (Þ) | 235 | 251 | |||||||
Series GMTN | Stora Enso OYJ | |||||||||
2.625% due 03/09/27 | 400 | 522 | 7.250% due 04/15/36 (Þ) | 100 | 116 | |||||
MPT Operating Partnership, LP / MPT | Sydney Airport Finance Co. Pty, Ltd. | |||||||||
Finance Corp. | ||||||||||
4.000% due 08/19/22 | 270 | 323 |
See accompanying notes which are an integral part of the financial statements.
656 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Series REGS | 4.250% due 08/04/22 (Ê) | 246 | 247 | ||||||
3.900% due 03/22/23 | 315 | 328 | Asurion LLC Term Loan B5 | ||||||
Teva Pharmaceutical Finance | 4.750% due 11/01/23 (Ê) | 614 | 619 | ||||||
Netherlands III BV | Atotech BV Term Loan B1 | ||||||||
2.800% due 07/21/23 | 430 | 414 | 4.146% due 01/24/24 | 250 | 251 | ||||
The Link Finance, Ltd. | Avantor Performance Materials LLC 1st | ||||||||
3.600% due 09/03/24 | 320 | 328 | Lien Term Loan | ||||||
Travelport Finance (Luxembourg) Sarl | 5.000% due 03/07/24 | 240 | 242 | ||||||
1st Lien Term Loan C | Avantor Performance Materials LLC | ||||||||
4.289% due 09/02/21 (Ê) | 250 | 252 | Term Loan | ||||||
Turk Telekomunikasyon AS | 5.000% due 03/08/24 | 10 | 10 | ||||||
Series REGS | Avaya, Inc. Term Loan B7 | ||||||||
4.875% due 06/19/24 | 230 | 227 | 6.417% due 05/29/20 (Ê)(Ø) | 1,250 | 1,042 | ||||
UBS Group Funding Switzerland AG | Avolon Holdings, Ltd. Term Loan B | ||||||||
3.491% due 05/23/23 (Þ) | 630 | 640 | 3.743% due 01/13/22 | 250 | 254 | ||||
Vale Overseas, Ltd. | BBB Industries LLC 1st Lien Term Loan | ||||||||
6.250% due 08/10/26 | 545 | 596 | 6.034% due 11/03/21 (Ê) | 500 | 501 | ||||
Valeant Pharmaceuticals International, | Berry Plastics Corp. 1st Lien Term | ||||||||
Inc. | Loan I | ||||||||
6.500% due 03/15/22 (Þ) | 125 | 128 | 3.493% due 10/01/22 (Ê) | 528 | 531 | ||||
7.000% due 03/15/24 (Þ) | 125 | 128 | 3.524% due 10/01/22 | 419 | 422 | ||||
VimpelCom Holdings BV | BJ's Wholesale Club, Inc. 2nd Lien Term | ||||||||
Series REGS | Loan | ||||||||
5.950% due 02/13/23 | 200 | 213 | 8.500% due 01/27/25 (Ê) | 250 | 250 | ||||
Brickman Group, Ltd. LLC (The) 1st | |||||||||
VTR Finance BV | Lien Term Loan B | ||||||||
6.875% due 01/15/24 (Þ) | 200 | 213 | 4.000% due 12/18/20 (Ê) | 669 | 671 | ||||
Want Want China Finance, Ltd. | Brickman Group, Ltd. LLC 1st Lien | ||||||||
2.875% due 04/27/22 | 340 | 339 | Term Loan B | ||||||
Wind Acquisition Finance SA | 4.022% due 12/18/20 | 26 | 26 | ||||||
7.375% due 04/23/21 (Þ) | 580 | 602 | 6.000% due 12/18/20 | 53 | 53 | ||||
Woodside Finance, Ltd. | BWAY Holding Co. Term Loan B | ||||||||
3.650% due 03/05/25 (Þ) | 245 | 242 | 4.233% due 03/22/24 | 1,000 | 993 | ||||
25,490 | Cable One, Inc. Term Loan B | ||||||||
Loan Agreements - 10.5% | 3.430% due 04/05/24 | 500 | 503 | ||||||
ABG Intermediate Holdings 2 LLC 1st | Caesars Entertainment Corp. 1st Lien | ||||||||
Lien Term Loan B1 | Term Loan B | ||||||||
5.147% due 05/27/21 (Ê) | 248 | 249 | 7.000% due 10/11/20 (Ê) | 1,995 | 1,999 | ||||
Acrisure LLC Term Loan B | Capital Automotive LP 1st Lien Term | ||||||||
6.147% due 10/28/23 | 750 | 752 | Loan | 252 | |||||
4.000% due 03/17/24 | 250 | ||||||||
Active Network, Inc. 1st Lien Term Loan | Capital Automotive LP 2nd Lien Term | ||||||||
6.000% due 11/15/20 | 249 | 250 | Loan | ||||||
Advanced Disposal Services, Inc. Term | 7.000% due 03/24/25 (Ê) | 250 | 255 | ||||||
Loan B3 | Casablanca US Holdings, Inc. 1st Lien | ||||||||
3.696% due 11/10/23 (Ê) | 748 | 754 | Term Loan | ||||||
Alliant Holdings Intermediate LLC Term | 5.897% due 02/21/24 (Ê) | 1,500 | 1,493 | ||||||
Loan B | CBS Radio, Inc. Term Loan B | ||||||||
4.417% due 08/14/22 (Ê) | 232 | 233 | 4.500% due 10/17/23 (Ê) | 374 | 376 | ||||
Alvogen Pharmaceutical US, Inc. Term | CCC Information Services, Inc. 1st Lien | ||||||||
Loan | Term Loan | ||||||||
6.000% due 04/02/22 (Ê) | 250 | 248 | 4.040% due 03/29/24 | 150 | 149 | ||||
Arbor Pharmaceuticals, Inc. Term Loan | |||||||||
B | CH Hold Corp. 1st Lien Term Loan | ||||||||
6.147% due 06/28/23 | 248 | 253 | 3.000% due 02/01/24 (Ê) | 45 | 46 | ||||
Artic Glacier USA, Inc. Term Loan B | CH Hold Corp. 1st Lien Term Loan B | ||||||||
5.250% due 03/14/24 | 500 | 506 | 4.000% due 02/01/24 (Ê) | 455 | 457 | ||||
AssuredPartners, Inc. Term Loan B | Change Healthcare Holdings LLC 1st | ||||||||
5.250% due 10/21/22 (Ê) | 249 | 251 | Lien Term Loan B | 501 | |||||
Asurion LLC 1st Lien Term Loan B4 | 3.750% due 03/01/24 (Ê) | 500 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 657
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Charcoal Holdings LLC 1st Lien Term | Generac Power Systems, Inc. 1st Lien | ||||||||
Loan | Term Loan B | ||||||||
0.057% due 07/03/23 | 748 | 753 | 3.898% due 05/31/23 (Ê) | 625 | 630 | ||||
Charter Communications Operating LLC | Getty Images, Inc. 1st Lien Term Loan B | ||||||||
1st Lien Term Loan H | 4.750% due 10/18/19 (Ê) | 250 | 221 | ||||||
3.000% due 01/15/22 (Ê) | 746 | 749 | Go Daddy Operating Co. LLC 1st Lien | ||||||
Cision, Inc. Term Loan B | Term Loan | ||||||||
7.147% due 05/12/23 | 997 | 1,003 | 3.451% due 02/06/24 (Ê) | 750 | 753 | ||||
Commercial Barge Line Co. 1st Lien | Grifols Worldwide Operations USA Inc. | ||||||||
Term Loan | 1st Lien Term Loan B | ||||||||
9.750% due 11/12/20 (Ê) | 447 | 405 | 3.285% due 01/31/25 (Ê) | 750 | 752 | ||||
Community Health Systems, Inc. Term | Gruden Acquisition, Inc. 1st Lien Term | ||||||||
Loan | Loan | ||||||||
4.000% due 01/27/21 (Ê) | 2,000 | 1,987 | 5.897% due 08/18/22 (Ê) | 499 | 482 | ||||
Constellation Brands, Inc. Term Loan B | Harland Clarke Holdings Corp. Term | ||||||||
0.047% due 11/14/23 | 748 | 753 | Loan B6 | ||||||
Constellis Holdings LLC 2nd Lien Term | 6.646% due 02/02/22 | 746 | 747 | ||||||
Loan | HCA, Inc. Term Loan B8 | ||||||||
10.155% due 04/21/25 (Ê) | 125 | 123 | 3.243% due 02/15/24 | 1,000 | 1,009 | ||||
Constellis Holdings LLC Term Loan B | Hilton Worldwide Finance LLC Term | ||||||||
6.155% due 04/13/24 | 500 | 494 | Loan B2 | ||||||
ConvergeOne Holdings Corp. 1st Lien | 2.991% due 10/25/23 (Ê) | 250 | 252 | ||||||
Term Loan | Intrawest Operations Group LLC Term | ||||||||
6.531% due 06/17/20 | 200 | 200 | Loan | ||||||
ConvergeOne Holdings Corp. Term Loan | 4.500% due 12/09/20 (Ê) | 250 | 251 | ||||||
6.522% due 06/17/20 | 50 | 50 | KRATON Polymers LLC 1st Lien Term | ||||||
Loan B | |||||||||
Cortes NP Acquisition Corp. Term Loan | 5.000% due 01/06/22 (Ê) | 173 | 176 | ||||||
B | |||||||||
5.000% due 11/30/23 | 625 | 629 | Landry's, Inc. 1st Lien Term Loan | ||||||
Creative Artists Agency LLC 1st Lien | 3.733% due 09/22/23 (Ê) | 494 | 494 | ||||||
Term Loan B | Learfield Communications, Inc. 1st Lien | ||||||||
4.500% due 02/13/24 (Ê) | 499 | 505 | Term Loan | ||||||
Crosby US Acquisition Corp. 1st Lien | 4.250% due 11/17/23 | 748 | 754 | ||||||
Term Loan | Lions Gate Enterntainment, Inc. 1st Lien | ||||||||
4.052% due 11/22/20 (Ê) | 249 | 231 | Term Loan | ||||||
Cvent, Inc. 1st Lien Term Loan B | 3.766% due 10/12/23 | 250 | 251 | ||||||
5.000% due 11/29/23 (Ê) | 500 | 503 | MacDermid, Inc. Term Loan B6 | ||||||
Dell International LLC 1st Lien Term | 4.000% due 06/07/23 | 250 | 251 | ||||||
Loan B | Match Group, Inc. Term Loan B1 | ||||||||
3.500% due 09/07/23 (Ê) | 998 | 1,001 | 4.276% due 10/27/22 (Ê) | 250 | 253 | ||||
Eastman Kodak Co. Term Loan | MCC Iowa LLC Term Loan H | ||||||||
7.422% due 09/03/19 (Ê) | 500 | 501 | 3.450% due 01/29/21 (Ê) | 249 | 250 | ||||
Eldorado Resorts LLC Term Loan B | MGM Growth Properties Operating | ||||||||
5.250% due 03/13/24 | 500 | 499 | Partnership, LP Term Loan B | ||||||
EnergySolutions LLC 1st Lien Term | 3.493% due 04/25/23 (Ê) | 249 | 250 | ||||||
Loan B | Navistar, Inc. 1st Lien Term Loan B | ||||||||
6.750% due 05/29/20 (Ê) | 250 | 253 | 5.000% due 08/07/20 (Ê) | 500 | 506 | ||||
Envision Healthcare Corp. Term Loan B | Nielsen Finance LLC Term Loan B4 | ||||||||
4.150% due 11/17/23 (Ê) | 748 | 755 | 2.990% due 10/24/23 | 250 | 251 | ||||
Epic Health Services, Inc. 1st Term Loan | NN, Inc. Term Loan | ||||||||
5.290% due 03/28/24 | 250 | 250 | 4.733% due 03/22/21 | 750 | 750 | ||||
ESH Hospitality, Inc. Term Loan B | NPC International, Inc. 1st Lien Term | ||||||||
3.493% due 08/30/23 (Ê) | 249 | 251 | Loan | ||||||
First Data Corp. Term Loan | 4.500% due 03/17/24 | 450 | 454 | ||||||
3.988% due 07/10/22 (Ê) | 1,250 | 1,257 | Optiv, Inc. 1st Lien Term Loan | ||||||
FPC Holdings, Inc. 1st Lien Term Loan | 4.250% due 02/01/24 (Ê) | 250 | 250 | ||||||
5.250% due 11/27/19 (Ê) | 488 | 465 | Penn National Gaming, Inc. 1st Lien | ||||||
Term Loan B | |||||||||
Gartner, Inc. Term Loan B | 3.524% due 01/19/24 (Ê) | 250 | 251 | ||||||
2.993% due 03/14/24 | 250 | 252 |
See accompanying notes which are an integral part of the financial statements.
658 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Pharmaceutical Product Development | Trader Corp. Term Loan B | ||||||||
LLC Term Loan B | 4.290% due 09/28/23 | 250 | 251 | ||||||
4.250% due 08/18/22 (Ê) | 176 | 177 | Trans Union LLC Term 1st Lien Loan B2 | ||||||
4.397% due 08/18/22 (Ê) | 198 | 199 | 3.493% due 04/09/21 (Ê) | 249 | 251 | ||||
Pilot Travel Centers LLC 1st Lien Term | Transdigm Group, Inc. 1st Lien Term | ||||||||
Loan B | Loan F | ||||||||
2.993% due 05/25/23 (Ê) | 249 | 251 | 3.993% due 06/09/23 (Ê) | 249 | 249 | ||||
Portillo's Holdings, LLC Covenant-Lite | |||||||||
1st Lien Term Loan | TruGreen, LP 1st Lien Term Loan | ||||||||
5.647% due 08/01/21 (Ê) | 249 | 251 | 6.500% due 04/13/23 (Ê) | 499 | 502 | ||||
Pre-Paid Legal Services, Inc. 2nd Lien | USIC Holdings, Inc. 1st Lien Term Loan | ||||||||
Term Loan | 5.170% due 11/21/23 | 249 | 251 | ||||||
10.250% due 07/01/20 (Ê) | 250 | 249 | Valeant Pharmaceuticals International, | ||||||
Prime Security Services Borrower LLC | Inc. Term Loan B | ||||||||
Term Loan B1 | 5.740% due 04/02/22 (Ê) | 717 | 721 | ||||||
4.250% due 05/02/22 (Ê) | 748 | 755 | Veresen Midstream, Ltd. Term Loan B2 | ||||||
Quest Software US Holdings, Inc. 1st | 4.606% due 03/31/22 (Ê) | 249 | 251 | ||||||
Lien Term Loan | Virgin Media Bristol LLC 1st Lien Term | ||||||||
7.000% due 10/31/22 (Ê) | 1,000 | 1,016 | Loan I | ||||||
Radio One, Inc. 1st Lien Term Loan B | 3.744% due 01/31/25 (Ê) | 500 | 502 | ||||||
5.080% due 04/05/23 (Ê) | 250 | 248 | Vouvray US Finance LLC Term Loan B | ||||||
RentPath, Inc. 1st Lien Term Loan | 4.176% due 01/27/24 | 250 | 250 | ||||||
6.250% due 12/17/21 (Ê) | 500 | 493 | William Morris Endeavor Entertainment | ||||||
Reynolds Group Holdings, Inc. 1st Lien | LLC 1st Lien Term Loan | ||||||||
Term Loan B | 4.250% due 05/06/21 (Ê) | 373 | 375 | ||||||
3.993% due 02/05/23 (Ê) | 748 | 752 | 4.290% due 05/06/21 | 1 | 1 | ||||
RPI Finance Trust Term Loan B6 | World Endurance Holdings 1st Lien | ||||||||
3.152% due 03/07/23 | 624 | 626 | Term Loan | ||||||
SESAC Holdco II LLC 2nd Lien Term | 5.397% due 06/26/21 (Ê) | 499 | 496 | ||||||
Loan | 53,627 | ||||||||
8.300% due 02/10/25 | 250 | 250 | Mortgage-Backed Securities - 11.0% | ||||||
Signode Industrial Group US, Inc. Term | Fannie Mae | ||||||||
Loan B | |||||||||
3.750% due 05/01/21 (Ê) | 140 | 141 | 30 Year TBA(Ï) | ||||||
3.897% due 05/01/21 | 108 | 108 | 3.000% | 16,000 | 15,790 | ||||
SIRVA Worldwide, Inc. Term Loan | 3.500% | 3,000 | 3,079 | ||||||
7.660% due 11/14/22 | 499 | 496 | 4.500% | 3,000 | 3,228 | ||||
Solarwinds Holdings, Inc. 1st Lien Term | Series 2013-304 Class C22 | ||||||||
Loan | Interest Only STRIP | ||||||||
4.500% due 02/05/23 (Ê) | 748 | 752 | 3.500% due 12/15/42 | 5,857 | 1,164 | ||||
Solera LLC Term Loan B | Series 2015-345 Class C13 | ||||||||
4.250% due 03/04/23 (Ê) | 249 | 251 | Interest Only STRIP | ||||||
Sprint Communications, Inc. 1st Lien | 3.500% due 08/15/45 | 7,907 | 1,525 | ||||||
Term Loan B | Fannie Mae REMICS | ||||||||
3.500% due 01/13/24 | 1,000 | 1,001 | Series 2010-35 Class SG | ||||||
SS&C Technologies, Inc. 1st Lien Term | |||||||||
Loan B1 | Interest Only STRIP | ||||||||
3.350% due 07/08/22 (Ê) | 455 | 458 | 5.418% due 04/25/40 (Ê) | 2,962 | 594 | ||||
Steak n Shake Operations, Inc. Term | Series 2012-58 Class SM | ||||||||
Loan | Interest Only STRIP | ||||||||
4.750% due 03/19/21 (Ê) | 304 | 303 | 5.476% due 06/25/42 | 1,939 | 331 | ||||
Tempo Acquisition LLC Term Loan | Series 2012-129 Class IJ | ||||||||
3.995% due 03/15/24 | 250 | 250 | Interest Only STRIP | ||||||
The Nature's Bounty Co. 1st Lien Term | 3.500% due 12/25/32 | 2,209 | 336 | ||||||
Loan B | |||||||||
4.647% due 05/05/23 (Ê) | 249 | 250 | Series 2012-4074 Class KS | ||||||
Interest Only STRIP | |||||||||
TKC Holdings, Inc. 1st Lien Term Loan | |||||||||
4.750% due 02/01/23 (Ê) | 250 | 253 | 5.788% due 02/15/41 (Ê) | 2,288 | 384 | ||||
TMS International Corp. Term Loan B | Series 2013-27 Class PI | ||||||||
Interest Only STRIP | |||||||||
4.557% due 10/16/20 (Ê) | 249 | 251 | 3.000% due 12/25/41 | 2,760 | 219 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 659
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Series 2013-35 Class PI | Series 2010-35 Class QI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
3.000% due 02/25/42 | 1,367 | 109 | 4.500% due 03/20/40 | 11,260 | 2,259 | |||||
Series 2013-40 Class YI | Series 2010-62 Class SD | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
3.500% due 06/25/42 | 1,679 | 226 | 5.512% due 05/20/40 (Ê) | 3,725 | 673 | |||||
Series 2013-41 Class SP | Series 2010-134 Class ES | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
5.218% due 06/25/40 (Ê) | 1,214 | 130 | 5.007% due 11/20/39 (Ê) | 3,725 | 362 | |||||
Series 2013-4182 Class PI | Series 2010-144 Class LS | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
3.000% due 12/15/41 | 3,900 | 319 | 5.439% due 07/16/37 | 1,830 | 59 | |||||
Series 2015-4510 Class HI | Series 2011-17 Class S | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
3.000% due 03/15/40 | 3,803 | 355 | 5.072% due 02/20/41 (Ê) | 7,345 | 1,174 | |||||
Series 2016-104 Class NI | Series 2011-22 Class PS | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
5.000% due 04/25/38 | 1,344 | 47 | 5.007% due 07/20/40 (Ê) | 3,958 | 406 | |||||
Series 2017-2 Class KI | Series 2012-104 Class QI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
4.000% due 02/25/47 | 1,951 | 348 | 3.500% due 04/20/42 | 1,604 | 364 | |||||
Series 2017-4666 Class AI | Series 2013-77 Class UI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
3.000% due 09/15/35 | 4,602 | 369 | 4.500% due 03/20/41 | 1,067 | 184 | |||||
Freddie Mac REMICS | Series 2013-H24 Class AI | |||||||||
Series 2012-3829 Class AS | Interest Only STRIP | |||||||||
Interest Only STRIP | 1.472% due 09/20/63 | 2,477 | 147 | |||||||
5.961% due 03/15/41 | 1,812 | 337 | Series 2014-69 Class IG | |||||||
Series 2012-4000 Class LI | Interest Only STRIP | |||||||||
Interest Only STRIP | 5.000% due 09/20/43 | 1,099 | 202 | |||||||
4.000% due 02/15/42 | 2,324 | 336 | Series 2014-H09 Class AI | |||||||
Series 2014-4299 Class JI | Interest Only STRIP | |||||||||
Interest Only STRIP | 1.437% due 01/20/64 | 6,272 | 370 | |||||||
4.000% due 07/15/43 | 2,194 | 319 | Series 2014-H13 Class BI | |||||||
Series 2015-4530 Class TI | Interest Only STRIP | |||||||||
Interest Only STRIP | 1.593% due 05/20/64 | 9,184 | 590 | |||||||
4.000% due 11/15/45 | 1,566 | 265 | Series 2014-H25 Class BI | |||||||
Series 2016-4601 Class PI | Interest Only STRIP | |||||||||
Interest Only STRIP | 1.646% due 12/20/64 | 2,502 | 219 | |||||||
4.500% due 12/15/45 | 1,624 | 265 | Series 2015-60 Class PI | |||||||
Series 2017-4663 Class KI | Interest Only STRIP | |||||||||
Interest Only STRIP | 4.000% due 04/20/45 | 1,664 | 324 | |||||||
3.500% due 11/15/42 | 2,377 | 300 | Series 2015-106 Class CI | |||||||
Series 2017-4663 Class TI | Interest Only STRIP | |||||||||
Interest Only STRIP | 4.000% due 05/20/45 | 2,222 | 364 | |||||||
3.500% due 10/15/42 | 2,449 | 298 | Series 2015-167 Class BI | |||||||
Series 2017-4678 Class MS | Interest Only STRIP | |||||||||
Interest Only STRIP | 4.500% due 04/16/45 | 1,405 | 320 | |||||||
5.107% due 04/15/47 | 1,514 | 347 | Series 2016-123 Class IQ | |||||||
Ginnie Mae | Interest Only STRIP | |||||||||
Series 2010-3 Class MS | 5.000% due 07/20/39 | 2,056 | 182 | |||||||
Interest Only STRIP | Series 2016-154 Class AI | |||||||||
6.018% due 11/20/38 (Ê) | 3,721 | 242 | Interest Only STRIP | |||||||
5.000% due 02/20/41 | 4,347 | 261 |
See accompanying notes which are an integral part of the financial statements.
660 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Series 2016-167 Class SB | Series 2015-111 Class IJ | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
5.022% due 04/20/38 (Ê) | 2,127 | 112 | 3.500% due 08/20/45 | 2,019 | 310 | |||||
Series 2016-168 Class AI | Series 2015-134 Class LI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
5.000% due 07/20/45 | 1,920 | 214 | 3.500% due 05/20/39 | 3,372 | 386 | |||||
Series 2016-H04 Class KI | Series 2015-162 Class BI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
1.875% due 02/20/66 | 1,310 | 118 | 4.000% due 11/20/40 | 3,682 | 594 | |||||
Series 2017-17 Class DI | Series 2015-H09 Class BI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
3.500% due 09/20/43 | 1,313 | 168 | 1.684% due 03/20/65 | 731 | 63 | |||||
Series 2017-42 Class IC | Series 2015-H10 Class CI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
4.500% due 08/20/41 | 13,640 | 2,724 | 1.797% due 04/20/65 | 1,791 | 176 | |||||
Series 2017-H03 Class DI | Series 2015-H15 Class JI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
2.195% due 12/20/66 | 2,800 | 390 | 1.936% due 06/20/65 | 1,251 | 132 | |||||
Series 2017-H06 Class EI | Series 2015-H18 Class IA | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
1.572% due 02/20/67 | 6,125 | 458 | 1.816% due 06/20/65 | 980 | 77 | |||||
Series 2017-H08 Class DI | Series 2015-H24 Class BI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
2.377% due 02/20/67 | 2,560 | 390 | 1.604% due 08/20/65 | 2,347 | 152 | |||||
Series 2017-H09 Class HI | Series 2015-H25 Class AI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
1.823% due 03/20/67 | 4,656 | 578 | 1.614% due 09/20/65 | 1,760 | 148 | |||||
Series 2017-H09 Class IO | Series 2015-H26 Class GI | |||||||||
Interest Only STRIP | Interest Only STRIP | |||||||||
1.774% due 04/20/67 | 5,626 | 613 | 1.780% due 10/20/65 | 982 | 96 | |||||
Ginnie Mae REMICS | Series 2016-129 Class PI | |||||||||
Class IA | Interest Only STRIP | |||||||||
Interest Only STRIP | 4.500% due 06/20/45 | 1,742 | 350 | |||||||
4.000% due 01/16/43 | 2,131 | 326 | Series 2016-H16 Class DI | |||||||
Series 2010-127 Class NI | Interest Only STRIP | |||||||||
Interest Only STRIP | 2.194% due 06/20/66 (Ê) | 3,058 | 394 | |||||||
4.000% due 02/20/39 | 1,877 | 151 | Series 2016-H25 Class GI | |||||||
Series 2012-129 Class IO | Interest Only STRIP | |||||||||
Interest Only STRIP | 1.511% due 11/20/66 | 6,391 | 393 | |||||||
4.500% due 11/16/42 | 1,566 | 351 | Series 2017-17 Class EI | |||||||
Series 2012-H06 Class AI | Interest Only STRIP | |||||||||
Interest Only STRIP | 4.000% due 09/20/44 | 2,374 | 293 | |||||||
1.361% due 01/20/62 | 10,694 | 596 | Series 2017-38 Class DI | |||||||
Series 2012-H10 Class AI | Interest Only STRIP | |||||||||
Interest Only STRIP | 5.000% due 03/16/47 | 2,966 | 596 | |||||||
1.219% due 12/20/61 | 12,844 | 603 | Series 2017-57 Class AI | |||||||
Series 2013-23 Class IK | Interest Only STRIP | |||||||||
Interest Only STRIP | 4.000% due 06/20/45 | 1,613 | 308 | |||||||
3.000% due 09/20/37 | 1,973 | 211 | Series 2017-H03 Class EI | |||||||
Series 2014-25 Class VI | Interest Only STRIP | |||||||||
Interest Only STRIP | 2.373% due 01/20/67 | 1,953 | 306 | |||||||
5.000% due 02/20/44 | 1,391 | 282 | Series 2017-H06 Class BI | |||||||
Series 2014-139 Class NI | Interest Only STRIP | |||||||||
Interest Only STRIP | 2.256% due 02/20/67 | 6,801 | 925 | |||||||
3.500% due 08/20/28 | 7,250 | 619 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 661
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||||
Principal | Fair | Principal | Fair | ||||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||||
or Shares | $ | or Shares | $ | ||||||||||
Series 2017-H06 Class DI | Series GMTN | ||||||||||||
Interest Only STRIP | 1.750% due 09/07/20 | EUR | 585 | 654 | |||||||||
1.755% due 02/20/67 | 6,732 | 716 | Kennedy Wilson Europe Real Estate | ||||||||||
Series 2017-H08 Class NI | PLC | ||||||||||||
Interest Only STRIP | 3.950% due 06/30/22 | GBP | 495 | 659 | |||||||||
2.147% due 03/20/67 | 7,141 | 955 | Landsbankinn HF | ||||||||||
1.625% due 03/15/21 | EUR | 230 | 255 | ||||||||||
55,996 | Madrilena Red de Gas Finance BV | ||||||||||||
Non-US Bonds - 9.2% | 4.500% due 12/04/23 | EUR | 250 | 331 | |||||||||
AA Bond Co., Ltd. | Malaysia Government International Bond | ||||||||||||
Series REGS | |||||||||||||
5.500% due 07/31/22 | GBP | 240 | 322 | Series 0116 | |||||||||
America Movil SAB de CV | 3.800% due 08/17/23 | MYR | 9,260 | 2,119 | |||||||||
Marks and Spencer PLC | |||||||||||||
5.000% due 10/27/26 | GBP | 270 | 423 | 3.000% due 12/08/23 | GBP | 130 | 172 | ||||||
ARD Finance SA | Merlin Properties SOCIMI SA | ||||||||||||
Series REGS | 2.375% due 05/23/22 | EUR | 200 | 229 | |||||||||
6.625% due 09/15/23 | EUR | 100 | 113 | ||||||||||
Ardagh Packaging Finance PLC / | Mexican Bonos | ||||||||||||
Ardagh Holdings USA, Inc. | Series M | ||||||||||||
Series REGS | 7.750% due 05/29/31 | MXN | 47,750 | 2,603 | |||||||||
6.750% due 05/15/24 | EUR | 110 | 132 | Mexico Government International Bond | |||||||||
Argentine Bonos del Tesoro | 2.750% due 04/22/23 | EUR | 415 | 487 | |||||||||
16.000% due 10/17/23 | ARS | 8,910 | 645 | New Look Secured Issuer PLC | |||||||||
AXA SA | Series REGS | ||||||||||||
3.941% due 11/29/49 (ƒ) | EUR | 405 | 473 | 6.500% due 07/01/22 | GBP | 250 | 283 | ||||||
Bank of Scotland PLC | NTPC, Ltd. | ||||||||||||
6.375% due 08/16/19 | GBP | 285 | 411 | 2.750% due 02/01/27 | EUR | 210 | 238 | ||||||
BHP Billiton Finance, Ltd. | Peruvian Government International Bond | ||||||||||||
6.500% due 10/22/77 | GBP | 510 | 755 | Series REGS | |||||||||
Brazil Notas do Tesouro Nacional Serie F | 6.350% due 08/12/28 | PEN | 2,935 | 936 | |||||||||
Series NTNF | Petrobras Global Finance BV | ||||||||||||
10.000% due 01/01/25 | BRL | 7,600 | 2,441 | 4.750% due 01/14/25 | EUR | 100 | 114 | ||||||
Colombian Titulos de Tesoreria | Petroleos Mexicanos | ||||||||||||
Series B | 8.250% due 06/02/22 | GBP | 83 | 131 | |||||||||
7.000% due 05/04/22 | COP | 11,088,000 | 3,958 | 4.875% due 02/21/28 | EUR | 180 | 204 | ||||||
Energias de Portugal, SA | PGH Capital PLC | ||||||||||||
5.375% due 09/16/75 | EUR | 200 | 236 | 5.750% due 07/07/21 | GBP | 150 | 221 | ||||||
Fiat Chrysler Finance Europe | Phoenix Group Holdings | ||||||||||||
Series GMTN | Series MAY | ||||||||||||
6.750% due 10/14/19 | EUR | 200 | 248 | 4.125% due 07/20/22 | GBP | 150 | 198 | ||||||
Gaz Capital SA | Royal Bank of Scotland Group PLC | ||||||||||||
4.250% due 04/06/24 | GBP | 100 | 132 | 2.500% due 03/22/23 | EUR | 430 | 487 | ||||||
Groupama SA | 5.500% due 11/29/49 (ƒ) | EUR | 310 | 337 | |||||||||
6.375% due 05/29/49 (ƒ) | EUR | 300 | 342 | RSA Insurance Group PLC | |||||||||
HSBC Holdings PLC | 5.125% due 10/10/45 | GBP | 120 | 172 | |||||||||
5.750% due 12/20/27 | GBP | 215 | 337 | Russian Federal Bond - OFZ | |||||||||
HT1 Funding GmbH | Series 6212 | ||||||||||||
6.352% due 07/29/49 (ƒ) | EUR | 160 | 164 | 7.050% due 01/19/28 | RUB | 103,900 | 1,756 | ||||||
Hungary Government Bond | RWE AG | ||||||||||||
Series 19/A | Series EMTn | ||||||||||||
6.500% due 06/24/19 | HUF | 521,000 | 2,051 | 2.750% due 04/21/75 | EUR | 380 | 412 | ||||||
Indonesia Treasury Bond | RZB Finance Jersey IV, Ltd. | ||||||||||||
Series FR56 | 1.622% due 05/29/49 (Ê)(ƒ) | EUR | 100 | 104 | |||||||||
8.375% due 09/15/26 | IDR | 50,270,000 | 4,100 | Santander UK Group Holdings PLC | |||||||||
InterContinental Hotels Group PLC | 7.375% due 12/29/49 (ƒ) | GBP | 200 | 276 | |||||||||
3.750% due 08/14/25 | GBP | 175 | 252 | SES SA | |||||||||
Islandsbanki hf | 4.625% due 12/29/49 (ƒ) | EUR | 240 | 279 |
See accompanying notes which are an integral part of the financial statements.
662 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||
Principal | Fair | Principal | Fair | |||||||||
Amount ($) | Value | Amount ($) | Value | |||||||||
or Shares | $ | or Shares | $ | |||||||||
SGSP (Australia) Assets Pty, Ltd. | Carnival PLC | 2,355 | 145 | |||||||||
5.125% due 02/11/21 | GBP | 110 | 162 | Carter's, Inc. | 2,199 | 202 | ||||||
Societe Generale SA | CBS Corp. Class B | 456 | 30 | |||||||||
6.750% due 04/07/49 (ƒ) | EUR | 230 | 269 | Chipotle Mexican Grill, Inc. Class A(Æ) | 516 | 245 | ||||||
Solvay Finance SA | Christian Dior SE | 4,301 | 1,181 | |||||||||
4.199% due 05/29/49 (ƒ) | EUR | 680 | 779 | Cie Financiere Richemont SA | 542 | 45 | ||||||
South Africa Government International | Cie Generale des Etablissements | 1,740 | 227 | |||||||||
Bond | Michelin Class B | |||||||||||
Series 2030 | Comcast Corp. Class A | 5,834 | 229 | |||||||||
8.000% due 01/31/30 | ZAR | 55,380 | 3,796 | Continental AG | 459 | 103 | ||||||
State Grid Overseas Investment, Ltd. | Costco Wholesale Corp. | 572 | 102 | |||||||||
Series REGS | Ctrip.com International, Ltd. - ADR(Æ) | 1,967 | 99 | |||||||||
1.250% due 05/19/22 | EUR | 585 | 648 | Daimler AG | 2,734 | 204 | ||||||
TDF Infrastructure SAS | Darden Restaurants, Inc. | 359 | 31 | |||||||||
2.875% due 10/19/22 | EUR | 200 | 238 | Diageo PLC | 3,775 | 110 | ||||||
Telecom Italia SpA | Dollar Tree, Inc.(Æ) | 10,880 | 901 | |||||||||
6.375% due 06/24/19 | GBP | 100 | 141 | Dollarama, Inc. | 6,507 | 569 | ||||||
Tesco PLC | Duni AB | 2,993 | 42 | |||||||||
6.125% due 02/24/22 | GBP | 300 | 448 | eBay, Inc.(Æ) | 20,300 | 678 | ||||||
Thailand Government International Bond | E-MART, Inc. | 580 | 118 | |||||||||
2.550% due 06/26/20 | THB | 103,230 | 3,055 | Fast Retailing Co., Ltd. | 1,100 | 359 | ||||||
Thomson Reuters Corp. | FUJIFILM Holdings Corp. | 700 | 26 | |||||||||
3.309% due 11/12/21 | CAD | 820 | 633 | Graham Holdings Co. Class B | 175 | 105 | ||||||
Total SA | Greene King PLC | 3,475 | 34 | |||||||||
2.250% due 12/29/49 (ƒ) | EUR | 630 | 692 | Hankook Tire Co., Ltd. | 7,133 | 369 | ||||||
Turkey Government International Bond | Havas SA | 3,622 | 34 | |||||||||
10.700% due 02/17/21 | TRY | 13,180 | 3,714 | Hilton Worldwide Holdings, Inc. | 10,258 | 605 | ||||||
Virgin Media Secured Finance PLC | Home Depot, Inc. (The) | 985 | 154 | |||||||||
Series REGS | Hoya Corp. | 500 | 24 | |||||||||
5.000% due 04/15/27 | GBP | 270 | 358 | Husqvarna AB Class B | 3,176 | 32 | ||||||
Western Power Distribution PLC | Hyundai Motor Co. | 1,949 | 246 | |||||||||
3.625% due 11/06/23 | GBP | 240 | 338 | Inchcape PLC | 2,805 | 31 | ||||||
Ziggo Secured Finance BV | Informa PLC | 4,353 | 36 | |||||||||
Series REGS | International Game Technology PLC | 8,340 | 185 | |||||||||
4.250% due 01/15/27 | EUR | 370 | 426 | Ipsos SA | 1,395 | 45 | ||||||
46,889 | ITOCHU Corp. | 8,000 | 113 | |||||||||
United States Government Treasuries - 0.1% | Izumi Co., Ltd. | 600 | 30 | |||||||||
United States Treasury Notes | Kering | 943 | 293 | |||||||||
1.125% due 02/28/19 | 240 | 240 | Kia Motors Corp. | 6,136 | 188 | |||||||
3.000% due 02/15/47 | 310 | 313 | Kingfisher PLC | 26,435 | 117 | |||||||
553 | Koito Manufacturing Co., Ltd. | 2,800 | 145 | |||||||||
Total Long-Term Investments | Koninklijke Philips NV | 3,731 | 129 | |||||||||
Kroton Educacional SA | 39,069 | 184 | ||||||||||
(cost $209,554) | 210,621 | Largan Precision Co., Ltd. | 4,000 | 664 | ||||||||
Common Stocks - 41.8% | Las Vegas Sands Corp. | 744 | ||||||||||
Consumer Discretionary - 5.6% | 12,608 | |||||||||||
ABC-Mart, Inc. | 400 | 22 | Li Ning Co., Ltd.(Æ) | 112,500 | 74 | |||||||
Acushnet Holdings Corp. | 1,503 | 27 | Live Nation Entertainment, Inc.(Æ) | 11,115 | 357 | |||||||
adidas AG | 921 | 185 | LKQ Corp.(Æ) | 17,624 | 551 | |||||||
Amazon.com, Inc.(Æ) | 2,773 | 2,564 | Lotte Shopping Co., Ltd. | 445 | 102 | |||||||
Amerco, Inc. | 121 | 45 | Lowe's Cos., Inc. | 5,446 | 462 | |||||||
Barratt Developments PLC | 30,163 | 226 | LVMH Moet Hennessy Louis Vuitton | 757 | 187 | |||||||
SE - ADR | ||||||||||||
Bayerische Motoren Werke AG | 1,480 | 141 | Macy's, Inc. | 1,191 | 35 | |||||||
Bellway PLC | 6,424 | 237 | Madison Square Garden Co. (The) Class | |||||||||
CarMax, Inc.(Æ) | 11,481 | 672 | A(Æ) | 2,711 | 547 | |||||||
Carnival Corp. | 1,589 | 98 | Marriott International, Inc. Class A | 3,021 | 285 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 663
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
McDonald's Corp. | 1,667 | 233 | Zalando SE(Æ)(Þ) | 16,106 | 711 | |||||
Megacable Holdings SAB de CV | 27,754 | 105 | Zillow Group, Inc.(Æ) | 7,091 | 277 | |||||
MercadoLibre, Inc. | 1,196 | 274 | 28,602 | |||||||
MGM Resorts International | 4,513 | 139 | ||||||||
Mohawk Industries, Inc.(Æ) | 152 | 36 | Consumer Staples - 1.8% | |||||||
MonotaRO Co., Ltd. | 1,200 | 39 | AAK AB | 415 | 30 | |||||
MTU Aero Engines AG | 277 | 40 | Altria Group, Inc. | 3,579 | 257 | |||||
Netflix, Inc.(Æ) | 4,022 | 612 | Amorepacific Corp. | 1,376 | 353 | |||||
News Corp. Class A | 8,312 | 106 | Archer-Daniels-Midland Co. | 882 | 40 | |||||
Nexstar Media Group, Inc. Class A | 5,460 | 377 | Asahi Group Holdings, Ltd. | 5,500 | 208 | |||||
Nielsen Holdings PLC | 10,065 | 414 | Astarta Holding NV(Æ) | 3,893 | 72 | |||||
Nike, Inc. Class B | 15,447 | 856 | BrasilAgro - Co. Brasileira de | 6,769 | 27 | |||||
Nissan Motor Co., Ltd. | 9,800 | 93 | Propriedades Agricolas | |||||||
Nitori Holdings Co., Ltd. | 200 | 26 | BRF SA(Æ) | 7,759 | 97 | |||||
Omnicom Group, Inc. | 317 | 26 | British American Tobacco PLC | 5,437 | 368 | |||||
Pandora Media, Inc.(Æ) | 13,252 | 144 | Brown-Forman Corp. Class B - ADR | 2,095 | 99 | |||||
Persimmon PLC Class A | 7,661 | 231 | China Agri-Industries Holdings, Ltd.(Æ) | 106,000 | 52 | |||||
Priceline Group, Inc. (The)(Æ) | 1,025 | 1,892 | China Yurun Food Group, Ltd.(Æ) | 153,000 | 23 | |||||
ProSiebenSat.1 Media SE | 663 | 28 | Chocoladefabriken Lindt & Spruengli | 15 | 84 | |||||
AG | ||||||||||
Red Rock Resorts, Inc. Class A | 4,411 | 103 | Church & Dwight Co., Inc. | 546 | 27 | |||||
Regal Entertainment Group Class A | 8,755 | 193 | Coca-Cola Co. (The) | 3,748 | 162 | |||||
RELX PLC | 5,317 | 108 | Coca-Cola HBC AG - ADR(Æ) | 1,140 | 32 | |||||
Renault SA | 357 | 33 | Coca-Cola West Co., Ltd. | 800 | 24 | |||||
Rinnai Corp. | 300 | 25 | Conagra Brands, Inc. | 872 | 34 | |||||
Ross Stores, Inc. | 545 | 35 | Cott Corp. | 12,988 | 171 | |||||
RTL Group SA | 1,331 | 103 | CVS Health Corp. | 511 | 42 | |||||
Secom Co., Ltd. | 500 | 36 | Davide Campari-Milano SpA | 3,487 | 41 | |||||
Sekisui House, Ltd. | 1,600 | 27 | Dr Pepper Snapple Group, Inc. | 1,177 | 108 | |||||
Shimamura Co., Ltd. | 200 | 27 | Fomento Economico Mexicano SAB de | |||||||
SINA Corp.(Æ) | 1,377 | 106 | CV - ADR | 4,562 | 410 | |||||
Skyworth Digital Holdings, Ltd. | 154,000 | 89 | Golden Agri-Resources, Ltd. | 1,211,200 | 312 | |||||
Starbucks Corp. | 6,352 | 382 | Greencore Group PLC Class A | 63,482 | 187 | |||||
Sumitomo Corp. | 2,300 | 31 | Industrias Bachoco SAB de CV | 22,553 | 101 | |||||
Sumitomo Electric Industries, Ltd. | 1,600 | 26 | Ito En, Ltd. | 800 | 29 | |||||
Suzuki Motor Corp. | 3,000 | 125 | Itoham Yonekyu Holdings, Inc. | 2,700 | 25 | |||||
Takashimaya Co., Ltd. | 3,000 | 28 | J Sainsbury PLC | 13,141 | 47 | |||||
Tata Motors, Ltd. - ADR | 14,218 | 507 | Japan Tobacco, Inc. | 3,700 | 123 | |||||
Taylor Wimpey PLC | 84,411 | 219 | JBS SA | 39,612 | 128 | |||||
TEGNA, Inc. | 1,120 | 29 | JM Smucker Co. (The) | 1,898 | 241 | |||||
Teleperformance - GDR | 2,186 | 275 | Kao Corp. | 500 | 28 | |||||
Time Warner, Inc. | 1,991 | 198 | Kernel Holding SA | 1,710 | 30 | |||||
TJX Cos., Inc. | 619 | 49 | Kirin Holdings Co., Ltd. | 1,500 | 29 | |||||
Toho Co., Ltd. | 1,300 | 37 | Kobayashi Pharmaceutical Co., Ltd. | 1,700 | 89 | |||||
Tokyo Broadcasting System Holdings, | 1,500 | 27 | Kraft Heinz Co. (The) | 338 | 31 | |||||
Toyota Inc. Motor Corp. | 1,800 | 97 | Marine Harvest ASA | 1,666 | 28 | |||||
McCormick & Co., Inc. | 955 | 95 | ||||||||
UBM PLC | 3,028 | 28 | MEIJI Holdings Co., Ltd. | 300 | 25 | |||||
Viacom, Inc. Class B | 7,605 | 324 | Metro AG | 3,403 | 112 | |||||
Wal-Mart Stores, Inc. | 2,306 | 173 | Molson Coors Brewing Co. Class B | 469 | 45 | |||||
Walt Disney Co. (The) | 9,504 | 1,099 | Mondelez International, Inc. Class A | 10,405 | 469 | |||||
Wolters Kluwer NV | 2,726 | 116 | Monster Beverage Corp.(Æ) | 8,814 | 400 | |||||
WPP PLC | 1,816 | 39 | Nestle SA - ADR | 1,396 | 107 | |||||
Wyndham Worldwide Corp. | 327 | 31 | NH Foods, Ltd. | 1,000 | 28 | |||||
Yamada Denki Co., Ltd. | 5,500 | 29 | Nisshin Seifun Group, Inc. | 5,800 | 89 | |||||
YIT OYJ | 6,145 | 49 | Nissin Foods Holdings Co., Ltd. | 1,600 | 92 | |||||
Yue Yuen Industrial Holdings, Ltd. | 43,000 | 170 |
See accompanying notes which are an integral part of the financial statements.
664 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
PepsiCo, Inc. | 2,049 | 232 | Repsol SA - ADR | 13,135 | 208 | ||||||
Pinnacle Foods, Inc. | 2,859 | 166 | Rosneft Oil Co. - GDR | 40,149 | 222 | ||||||
Procter & Gamble Co. (The) | 3,424 | 299 | Royal Dutch Shell PLC Class B | 4,311 | 115 | ||||||
Reckitt Benckiser Group PLC | 306 | 28 | Schlumberger, Ltd. | 13,919 | 1,010 | ||||||
Reynolds American, Inc. | 2,203 | 142 | Southwestern Energy Co.(Æ) | 32,739 | 246 | ||||||
Shanghai Pharmaceuticals Holding Co., | 112,700 | 299 | Tatneft PJSC - ADR | 5,627 | 220 | ||||||
Ltd. Class H | Thai Oil PCL | 92,500 | 209 | ||||||||
Shoprite Holdings, Ltd. - ADR | 26,130 | 410 | Valero Energy Corp. | 1,445 | 93 | ||||||
SLC Agricola SA | 36,907 | 228 | YPF SA - ADR | 22,207 | 574 | ||||||
Suedzucker AG | 1,089 | 23 | |||||||||
Sugi Holdings Co., Ltd. - GDR | 500 | 25 | 9,868 | ||||||||
Suntory Beverage & Food, Ltd. | 600 | 27 | Financial Services - 11.6% | ||||||||
Sysco Corp. | 710 | 38 | 3i Group PLC | 11,163 | 115 | ||||||
Tate & Lyle PLC | 4,098 | 40 | ABN AMRO Group NV(Þ) | 1,117 | 29 | ||||||
Toyo Suisan Kaisha, Ltd. | 700 | 26 | Activia Properties, Inc.(ö) | 47 | 224 | ||||||
Tyson Foods, Inc. Class A | 577 | 37 | Admiral Group PLC | 1,215 | 32 | ||||||
Unicharm Corp. | 1,100 | 27 | ADO Properties SA(Þ) | 1,942 | 71 | ||||||
Unilever PLC | 569 | 29 | Aedifica(ö) | 554 | 44 | ||||||
Walgreens Boots Alliance, Inc. | 1,682 | 146 | Aegon NV | 21,545 | 109 | ||||||
WH Group, Ltd.(Þ) | 196,500 | 176 | Affiliated Managers Group, Inc. | 1,796 | 297 | ||||||
Whole Foods Market, Inc. | 15,639 | 569 | Aflac, Inc. | 2,505 | 188 | ||||||
Wm Morrison Supermarkets PLC | 31,601 | 98 | Agricultural Bank of China, Ltd. Class H | 786,000 | 362 | ||||||
X5 Retail Group NV - GDR(Æ) | 11,127 | 392 | AIA Group, Ltd. | 100,600 | 697 | ||||||
9,108 | Alleghany Corp.(Æ) | 184 | 112 | ||||||||
Energy - 1.9% | Alliance Data Systems Corp. | 2,828 | 706 | ||||||||
Anadarko Petroleum Corp. | 440 | 25 | Allied Properties Real Estate Investment | 7,101 | 191 | ||||||
Trust(ö) | |||||||||||
Areva SA(Æ) | 5,681 | 26 | Allied World Assurance Co. Holdings | 1,806 | 96 | ||||||
Baker Hughes, Inc. | 5,880 | 349 | AG | ||||||||
BP PLC | 18,847 | 108 | Allstate Corp. (The) | 2,428 | 197 | ||||||
Chevron Corp. | 2,360 | 252 | alstria office AG(ö) | 13,340 | 176 | ||||||
Cloud Peak Energy, Inc.(Æ) | 24,410 | 82 | American Express Co. | 1,484 | 118 | ||||||
Core Laboratories NV | 3,812 | 423 | American Financial Group, Inc. | 1,065 | 104 | ||||||
Cosan SA Industria e Comercio | 27,812 | 325 | American Homes 4 Rent Class A(ö) | 12,942 | 298 | ||||||
Denison Mines Corp.(Æ) | 57,025 | 29 | American International Group, Inc. | 12,321 | 750 | ||||||
Enterprise Products Partners, LP | 12,082 | 330 | American National Insurance Co. | 886 | 104 | ||||||
EOG Resources, Inc. | 5,343 | 494 | American Tower Corp.(ö) | 16,317 | 2,054 | ||||||
ERG SpA | 9,800 | 122 | Ameris Bancorp | 4,151 | 196 | ||||||
Exxon Mobil Corp. | 4,779 | 390 | AmTrust Financial Services, Inc. | 1,693 | 27 | ||||||
Fission Uranium Corp.(Æ) | 62,365 | 28 | Aon PLC | 377 | 45 | ||||||
Gazprom PAO | 104,263 | 251 | Aozora Bank, Ltd. | 23,000 | 84 | ||||||
Gazprom PJSC - ADR | 64,833 | 308 | Apple Hospitality REIT, Inc.(ö) | 5,077 | 95 | ||||||
Hess Corp. | 679 | 33 | Arch Capital Group, Ltd.(Æ) | 1,561 | 151 | ||||||
JX Holdings, Inc. | 8,100 | 37 | Arthur J Gallagher & Co. | 855 | 48 | ||||||
KazMunaiGas Exploration Production | 7,409 | 72 | Artisan Class Partners A Asset Management, Inc. | 12,913 | 378 | ||||||
Kinder JSC - Morgan, GDR(Æ) Inc. | 70,034 | 1,445 | Aspen Insurance Holdings, Ltd. | 1,894 | 99 | ||||||
Lukoil PJSC - ADR | 11,039 | 548 | Assura PLC(ö) | 146,400 | 116 | ||||||
Marathon Petroleum Corp. | 4,656 | 237 | Assurant, Inc. | 356 | 34 | ||||||
Newfield Exploration Co.(Æ) | 7,595 | 263 | Athene Holding Ltd. Class A(Æ) | 527 | 28 | ||||||
Occidental Petroleum Corp. | 1,761 | 108 | AvalonBay Communities, Inc.(ö) | 2,925 | 555 | ||||||
OMV AG | 2,595 | 119 | Aviva PLC | 4,350 | 30 | ||||||
PetroChina Co., Ltd. Class H | 256,000 | 180 | AXA SA | 8,731 | 233 | ||||||
Phillips 66 | 1,479 | 118 | Axis Capital Holdings, Ltd. | 2,229 | 147 | ||||||
Pioneer Natural Resources Co. | 1,053 | 182 | Banco Bilbao Vizcaya Argentaria SA | 3,863 | 31 | ||||||
- ADR | |||||||||||
Precision Drilling Corp.(Æ) | 21,773 | 87 | Banco Santander SA - ADR | 7,338 | 48 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 665
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Bancolombia SA - ADR | 1,170 | 46 | Douglas Emmett, Inc.(ö) | 6,077 | 229 | ||||||
Bank of America Corp. | 23,960 | 559 | Dundee Corp. Class A(Æ) | 16,768 | 39 | ||||||
Bank of China, Ltd. Class H | 811,000 | 392 | DuPont Fabros Technology, Inc.(ö) | 3,916 | 202 | ||||||
Bank of New York Mellon Corp. (The) | 2,472 | 116 | Education Realty Trust, Inc.(ö) | 5,383 | 209 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 102,900 | 99 | Empire State Realty Trust, Inc. Class | 8,864 | 184 | ||||||
Bankinter SA | 3,498 | 31 | A(ö) | ||||||||
Barclays PLC | 76,300 | 208 | Entra ASA(Þ) | 8,855 | 102 | ||||||
BB&T Corp. | 2,307 | 100 | Equifax, Inc. | 205 | 28 | ||||||
Berkshire Hathaway, Inc. Class B(Æ) | 2,234 | 369 | Equinix, Inc.(ö) | 3,454 | 1,443 | ||||||
BGEO Group PLC | 1,342 | 63 | Equity LifeStyle Properties, Inc. Class | 2,471 | 200 | ||||||
A(ö) | |||||||||||
Big Yellow Group PLC(ö) | 16,647 | 167 | Erie Indemnity Co. Class A | 224 | 28 | ||||||
BlackRock, Inc. Class A | 724 | 278 | Erste Group Bank AG | 869 | 31 | ||||||
Blackstone Group, LP (The) | 34,470 | 1,063 | Essex Property Trust, Inc.(ö) | 1,597 | 390 | ||||||
BM&FBovespa SA - Bolsa de Valores | 58,759 | 353 | Etalon Group, Ltd. - GDR(Æ) | 30,502 | 117 | ||||||
BNP Mercadorias Paribas SA e Futuros(Æ) | 563 | 40 | Everest Re Group, Ltd. | 768 | 193 | ||||||
Brixmor Property Group, Inc.(ö) | 6,485 | 128 | Extra Space Storage, Inc.(ö) | 3,199 | 242 | ||||||
Brookline Bancorp, Inc. | 2,052 | 30 | Fastighets AB Balder Class B(Æ) | 3,188 | 71 | ||||||
Brown & Brown, Inc. | 2,127 | 91 | Fifth Third Bancorp | 988 | 24 | ||||||
BTG Pactual Group(Æ) | 12,638 | 74 | First American Financial Corp. | 829 | 36 | ||||||
Buwog AG(Æ) | 6,613 | 179 | Fiserv, Inc.(Æ) | 230 | 27 | ||||||
Capital One Financial Corp. | 5,067 | 407 | FleetCor Technologies, Inc.(Æ) | 2,749 | 388 | ||||||
CBRE Group, Inc. Class A(Æ) | 16,680 | 597 | FNF Group | 1,137 | 47 | ||||||
Charles Schwab Corp. (The) | 19,694 | 765 | Franklin Resources, Inc. | 4,528 | 195 | ||||||
Cheung Kong Property Holdings, Ltd. | 40,500 | 290 | Fubon Financial Holding Co., Ltd. | 78,000 | 122 | ||||||
China CITIC Bank Corp., Ltd. Class H | 429,000 | 272 | Gecina SA(ö) | 1,143 | 163 | ||||||
China Everbright, Ltd. | 54,000 | 123 | Gentera SAB de CV | 37,776 | 63 | ||||||
China Resources Land, Ltd. | 18,000 | 50 | GEO Group, Inc. (The)(ö) | 3,986 | 133 | ||||||
Chongqing Rural Commercial Bank Co., | 151,000 | 104 | Global Logistic Properties, Ltd. | 17,100 | 35 | ||||||
Ltd. Class H | Goldman Sachs Group, Inc. (The) | 163 | 36 | ||||||||
Chubb, Ltd. | 3,808 | 524 | Goodman Group(ö) | 43,262 | 262 | ||||||
Chugoku Bank, Ltd. (The) | 1,700 | 25 | Guoco Group, Ltd. | 8,000 | 92 | ||||||
CIFI Holdings Group Co., Ltd. | 452,000 | 163 | Hachijuni Bank, Ltd. (The) | 4,400 | 26 | ||||||
Cincinnati Financial Corp. | 1,291 | 93 | Haci Omer Sabanci Holding AS | 52,752 | 157 | ||||||
CIT Group, Inc. | 641 | 30 | Hana Financial Group, Inc. | 21,030 | 723 | ||||||
Citigroup, Inc. | 22,750 | 1,345 | Hang Lung Properties, Ltd. - ADR | 103,000 | 270 | ||||||
Close Brothers Group PLC | 6,452 | 141 | Hannover Rueck SE | 1,718 | 206 | ||||||
CME Group, Inc. Class A | 5,547 | 645 | Hanover Insurance Group, Inc. (The) | 405 | 36 | ||||||
CNA Financial Corp. | 904 | 41 | Hartford Financial Services Group, Inc. | 2,198 | 106 | ||||||
Corporate Office Properties Trust(ö) | 4,462 | 146 | HCP, Inc.(ö) | 14,669 | 460 | ||||||
Cousins Properties, Inc.(ö) | 27,805 | 236 | HDFC Bank, Ltd. - ADR | 9,188 | 732 | ||||||
Credicorp, Ltd. | 312 | 48 | Hiscox, Ltd. | 3,661 | 54 | ||||||
Credit Agricole SA | 2,123 | 32 | Hispania Activos Inmobiliarios SOCIMI | 8,035 | 121 | ||||||
Credit Saison Co., Ltd. | 1,400 | 25 | SA(ö) | ||||||||
Crown Castle International Corp.(ö) | 2,311 | 219 | HSBC Holdings PLC | 11,391 | 94 | ||||||
CyrusOne, Inc.(ö) | 2,890 | 158 | Hulic Reit, Inc.(ö) | 33 | 53 | ||||||
Daiwa Securities Group, Inc. | 4,000 | 24 | Huntington Bancshares, Inc. | 28,574 | 367 | ||||||
Danske Bank A/S | 4,246 | 154 | ICICI Bank, Ltd. - ADR | 12,341 | 106 | ||||||
Deutsche Bank AG | 11,877 | 215 | Immofinanz AG | 103,825 | 216 | ||||||
Deutsche Wohnen AG | 9,534 | 326 | Industrial & Commercial Bank of China, | 523,000 | 341 | ||||||
Ltd. Class H | |||||||||||
Dexus Property Group(Æ)(ö) | 57,383 | 438 | ING Groep NV | 7,976 | 130 | ||||||
Digital Realty Trust, Inc.(ö) | 1,766 | 203 | Interactive Brokers Group, Inc. Class A | 16,584 | 578 | ||||||
Dime Community Bancshares, Inc. | 2,028 | 39 | Intercontinental Exchange, Inc. | 8,612 | 518 | ||||||
Discover Financial Services | 561 | 35 | Intermediate Capital Group PLC(Æ) | 3,829 | 39 | ||||||
DNB ASA | 16,585 | 259 | International Bancshares Corp. | 5,233 | 196 | ||||||
Dongbu Insurance Co., Ltd. | 3,837 | 229 | Investec PLC | 6,173 | 46 |
See accompanying notes which are an integral part of the financial statements.
666 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Itau Unibanco Holding SA - ADR | 21,244 | 261 | Progressive Corp. (The) | 3,346 | 133 | ||||||
Jack Henry & Associates, Inc. | 999 | 97 | Prologis, Inc.(ö) | 3,544 | 193 | ||||||
Japan Post Bank Co., Ltd. | 2,100 | 26 | Prudential Financial, Inc. | 1,084 | 116 | ||||||
Japan Post Holdings Co., Ltd. | 3,600 | 45 | Public Storage(ö) | 1,264 | 265 | ||||||
Japan Post Insurance Co., Ltd. | 1,100 | 25 | Quality Care Properties, Inc.(Æ)(ö) | 2,193 | 38 | ||||||
Japan Retail Fund Investment Corp.(ö) | 97 | 190 | Realogy Holdings Corp. | 16,665 | 509 | ||||||
JPMorgan Chase & Co. | 6,317 | 550 | Realty Income Corp.(ö) | 5,932 | 346 | ||||||
Jyske Bank A/S | 513 | 27 | Regions Financial Corp. | 1,778 | 24 | ||||||
KB Financial Group, Inc. | 17,006 | 746 | Reinsurance Group of America, Inc. | 1,077 | 135 | ||||||
KBC Groep NV | 539 | 39 | Class A | ||||||||
Kenedix Office Investment Corp. Class | 21 | 119 | RenaissanceRe Holdings, Ltd. | 886 | 126 | ||||||
A(ö) | Royal Bank of Scotland Group PLC(Æ) | 266,939 | 917 | ||||||||
Kilroy Realty Corp.(ö) | 2,446 | 173 | Saga PLC | 48,354 | 131 | ||||||
Kinnevik AB(Æ) | 41,552 | 1,108 | Sanlam, Ltd. | 34,741 | 184 | ||||||
Klepierre - GDR(ö) | 7,304 | 287 | SBA Communications Corp.(Æ)(ö) | 5,088 | 644 | ||||||
Lazard, Ltd. Class A | 729 | 31 | Sberbank of Russia PJSC Class T | 39,852 | 116 | ||||||
Legal & General Group PLC | 9,377 | 30 | Sberbank of Russia PJSC - ADR | 55,470 | 659 | ||||||
Leucadia National Corp. | 4,365 | 111 | SBI Holdings, Inc. | 1,900 | 26 | ||||||
Lincoln National Corp. | 390 | 26 | Scentre Group(ö) | 28,475 | 92 | ||||||
Link Real Estate Investment Trust(ö) | 17,000 | 122 | SCOR SE - ADR | 882 | 35 | ||||||
Loews Corp. | 2,990 | 139 | Segro PLC(ö) | 43,885 | 276 | ||||||
LondonMetric Property PLC(ö) | 54,322 | 118 | Siam Commercial Bank PCL (The) | 44,100 | 198 | ||||||
M&T Bank Corp. | 593 | 92 | Simon Property Group, Inc.(ö) | 2,876 | 475 | ||||||
Macquarie Group, Ltd. | 2,483 | 172 | Skandinaviska Enskilda Banken AB | 9,025 | 104 | ||||||
Marsh & McLennan Cos., Inc. | 1,474 | 109 | Class A | ||||||||
MasterCard, Inc. Class A | 12,492 | 1,453 | SL Green Realty Corp.(ö) | 3,640 | 382 | ||||||
MBIA, Inc.(Æ) | 75,051 | 630 | Southwest Bancorp, Inc. | 4,059 | 105 | ||||||
Melker Schorling AB | 454 | 29 | SpareBank 1 SR-Bank ASA | 18,689 | 147 | ||||||
Merlin Properties Socimi SA(ö) | 5,499 | 65 | Sprott, Inc. | 135,715 | 234 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 34,800 | 222 | Standard Chartered PLC(Æ) | 21,449 | 200 | ||||||
Mitsui Fudosan Co., Ltd. | 23,000 | 507 | State Street Corp. | 338 | 28 | ||||||
Mizuho Financial Group, Inc. | 45,900 | 84 | Sumitomo Mitsui Financial Group, Inc. | 700 | 26 | ||||||
Morgan Stanley | 1,652 | 72 | Sumitomo Realty & Development Co., | 6,000 | 162 | ||||||
Ltd. | |||||||||||
Morningstar, Inc. | 338 | 25 | Sun Communities, Inc.(ö) | 4,376 | 366 | ||||||
Moscow Exchange MICEX-RTS PJSC | 58,704 | 119 | Sun Hung Kai Properties, Ltd. | 18,000 | 270 | ||||||
MS&AD Insurance Group Holdings, Inc. | 800 | 26 | Sunstone Hotel Investors, Inc.(ö) | 10,934 | 163 | ||||||
Muenchener Rueckversicherungs- | 993 | 190 | SunTrust Banks, Inc. | 632 | 36 | ||||||
New Gesellschaft China Life AG Insurance in Muenchen Co., Ltd. | Svenska Handelsbanken AB Class A | 16,117 | 229 | ||||||||
Class H | 62,900 | 310 | Svenska Handelsbanken AB Class B | 1,940 | 27 | ||||||
Nippon Building Fund, Inc.(ö) | 15 | 80 | Swedbank AB Class A | 4,358 | 103 | ||||||
Old Republic International Corp. | 2,271 | 47 | Synchrony Financial | 8,228 | 229 | ||||||
ORIX Corp. | 13,300 | 203 | TD Ameritrade Holding Corp. | 11,452 | 438 | ||||||
OTP Bank PLC | 3,535 | 99 | TLG Immobilien AG | 6,824 | 138 | ||||||
Parkway, Inc.(ö) | 5,839 | 118 | Tokyo Tatemono Co., Ltd. | 20,200 | 276 | ||||||
PAX Global Technology, Ltd. | 173,000 | 107 | Torchmark Corp. | 2,056 | 158 | ||||||
PayPal Holdings, Inc.(Æ) | 752 | 36 | TransUnion(Æ) | 6,902 | 276 | ||||||
Phoenix Group Holdings | 4,417 | 42 | Travelers Cos., Inc. (The) | 1,649 | 201 | ||||||
PICC Property & Casualty Co., Ltd. | 212,000 | 341 | Tryg A/S | 1,461 | 28 | ||||||
Class H | Turkiye Is Bankasi Class C | 137,539 | 271 | ||||||||
Ping An Insurance Group Co. of China, | 50,500 | 284 | UBS Group AG(Æ) | 1,723 | 29 | ||||||
PNC Ltd. Financial Class H Services Group, Inc. | UDR, Inc.(ö) | 9,507 | 355 | ||||||||
(The) | 3,261 | 391 | UNITE Group PLC (The)(ö) | 16,150 | 135 | ||||||
Popular, Inc. | 7,090 | 297 | United Overseas Bank, Ltd. | 12,700 | 199 | ||||||
Poste Italiane SpA(Þ) | 4,083 | 28 | Unum Group | 2,032 | 94 | ||||||
Powszechny Zaklad Ubezpieczen SA | 16,330 | 180 | Uranium Participation Corp.(Æ) | 91,801 | 264 | ||||||
Principal Financial Group, Inc. | 1,510 | 98 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 667
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
US Bancorp | 2,821 | 145 | LifePoint Health, Inc.(Æ) | 420 | 26 | ||||
Validus Holdings, Ltd. | 754 | 42 | Medipal Holdings Corp. | 2,500 | 41 | ||||
Visa, Inc. Class A | 17,459 | 1,593 | Medtronic PLC | 1,643 | 137 | ||||
Vornado Realty Trust(ö) | 4,149 | 399 | Merck & Co., Inc. | 2,443 | 152 | ||||
Voya Financial, Inc. | 2,523 | 94 | Mitsubishi Tanabe Pharma Corp. | 5,200 | 106 | ||||
Webster Financial Corp. | 3,519 | 179 | Novartis AG | 6,469 | 498 | ||||
Weingarten Realty Investors(ö) | 6,958 | 228 | Novo Nordisk A/S Class B | 14,716 | 572 | ||||
Wells Fargo & Co. | 8,817 | 475 | Ono Pharmaceutical Co., Ltd. | 7,900 | 163 | ||||
Western Union Co. (The) | 9,856 | 196 | Orion OYJ Class A | 527 | 30 | ||||
Workspace Group PLC(ö) | 2,875 | 32 | Orion OYJ Class B | 592 | 34 | ||||
Worldpay Group PLC(Þ) | 50,404 | 196 | Patterson Cos., Inc. | 609 | 27 | ||||
WR Berkley Corp. | 1,910 | 130 | Pfizer, Inc. | 10,285 | 349 | ||||
XL Group, Ltd. | 3,980 | 167 | Protek PJSC | 17,678 | 32 | ||||
Yamaguchi Financial Group, Inc. | 7,000 | 78 | Quest Diagnostics, Inc. | 3,323 | 351 | ||||
59,103 | Regeneron Pharmaceuticals, Inc.(Æ) | 2,135 | 829 | ||||||
Rhoen Klinikum AG | 1,030 | 29 | |||||||
Health Care - 2.9% | Roche Holding AG | 1,206 | 315 | ||||||
Abbott Laboratories | 21,468 | 937 | Sanofi - ADR | 2,299 | 217 | ||||
AbbVie, Inc. | 421 | 28 | Sawai Pharmaceutical Co., Ltd. | 600 | 33 | ||||
Abiomed, Inc.(Æ) | 1,642 | 214 | Smith & Nephew PLC | 6,208 | 102 | ||||
Aetna, Inc. | 205 | 28 | Straumann Holding AG | 91 | 48 | ||||
Alfresa Holdings Corp. | 1,500 | 27 | Stryker Corp. | 818 | 112 | ||||
Align Technology, Inc.(Æ) | 7,650 | 1,030 | Suzuken Co., Ltd. | 3,000 | 99 | ||||
Allergan PLC(Æ) | 979 | 239 | Taisho Pharmaceutical Holdings Co., | 800 | 66 | ||||
Anthem, Inc. | 1,561 | 278 | Ltd. | ||||||
Astellas Pharma, Inc. | 7,000 | 92 | Teva Pharmaceutical Industries, Ltd. | 5,942 | 188 | ||||
- ADR | |||||||||
Bayer AG | 1,547 | 191 | Thermo Fisher Scientific, Inc. | 180 | 30 | ||||
BioMarin Pharmaceutical, Inc.(Æ) | 4,054 | 389 | UCB SA | 1,672 | 130 | ||||
Bio-Rad Laboratories, Inc. Class A(Æ) | 482 | 105 | UnitedHealth Group, Inc. | 2,430 | 425 | ||||
Bristol-Myers Squibb Co. | 23,815 | 1,335 | Varian Medical Systems, Inc.(Æ) | 312 | 28 | ||||
Cardinal Health, Inc. | 333 | 24 | William Demant Holding A/S(Æ) | 1,397 | 32 | ||||
Cerner Corp.(Æ) | 5,459 | 353 | Zimmer Biomet Holdings, Inc. | 833 | 100 | ||||
Cigna Corp. | 177 | 28 | 14,773 | ||||||
Coloplast A/S Class B | 5,084 | 435 | |||||||
Cooper Cos., Inc. (The) | 139 | 28 | Materials and Processing - 2.4% | ||||||
Daiichi Sankyo Co., Ltd. | 4,200 | 93 | Air Water, Inc. | 1,400 | 27 | ||||
DaVita HealthCare Partners, Inc.(Æ) | 403 | 28 | AptarGroup, Inc. | 356 | 29 | ||||
Edwards Lifesciences Corp.(Æ) | 3,940 | 432 | ArcelorMittal(Æ) | 18,215 | 143 | ||||
Eisai Co., Ltd. | 4,800 | 252 | Arkema SA | 287 | 30 | ||||
Eli Lilly & Co. | 357 | 29 | Asahi Kasei Corp. | 2,000 | 19 | ||||
Endo International PLC(Æ) | 48,159 | 547 | Atkore International Group, Inc.(Æ) | 1,414 | 37 | ||||
Essilor International SA | 234 | 30 | Babcock International Group PLC | 2,479 | 29 | ||||
Fluidigm Corp.(Æ) | 5,283 | 26 | Barrick Gold Corp. | 10,524 | 176 | ||||
Fresenius Medical Care AG & Co. | 525 | 47 | BASF SE | 2,012 | 196 | ||||
Fresenius SE & Co. KGaA | 1,611 | 131 | Bemis Co., Inc. | 557 | 25 | ||||
Galenica AG | 33 | 36 | BHP Billiton PLC - ADR | 6,342 | 195 | ||||
Genmab A/S(Æ) | 3,110 | 620 | Brenntag AG | 489 | 29 | ||||
Gilead Sciences, Inc. | 651 | 45 | Cameco Corp. Class A | 52,360 | 501 | ||||
HCA Holdings, Inc.(Æ) | 312 | 26 | Caverion Corp.(Æ) | 5,829 | 48 | ||||
Henry Schein, Inc.(Æ) | 189 | 33 | CCL Industries, Inc. Class B | 547 | 127 | ||||
Hologic, Inc.(Æ) | 2,942 | 133 | Centerra Gold, Inc. | 33,268 | 172 | ||||
Illumina, Inc.(Æ) | 1,741 | 322 | CRH PLC | 2,883 | 105 | ||||
Intuitive Surgical, Inc.(Æ) | 542 | 453 | Croda International PLC | 839 | 41 | ||||
Johnson & Johnson | 3,185 | 393 | Crown Holdings, Inc.(Æ) | 511 | 29 | ||||
Laboratory Corp. of America | 248 | 35 | Dow Chemical Co. (The) | 1,667 | 105 | ||||
Holdings(Æ) |
See accompanying notes which are an integral part of the financial statements.
668 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||
Principal | Fair | Principal | Fair | |||||||||
Amount ($) | Value | Amount ($) | Value | |||||||||
or Shares | $ | or Shares | $ | |||||||||
Dundee Precious Metals, Inc.(Æ) | 50,589 | 101 | Synthos SA | 31,554 | 44 | |||||||
Ecolab, Inc. | 217 | 28 | Toray Industries, Inc. | 3,000 | 27 | |||||||
EI du Pont de Nemours & Co. | 2,133 | 170 | Turquoise Hill Resources, Ltd.(Æ) | 61,334 | 167 | |||||||
Evonik Industries AG | 1,222 | 41 | Vedanta, Ltd. - ADR | 11,083 | 168 | |||||||
Fastenal Co. | 7,776 | 347 | Voestalpine AG | 656 | 27 | |||||||
Gabriel Resources, Ltd.(Æ) | 1,469,842 | 393 | Wolseley PLC - ADR | 562 | 36 | |||||||
Glencore PLC(Æ) | 69,727 | 273 | Yara International ASA | 5,396 | 200 | |||||||
Grupo Cementos de Chihuahua SAB | 21,640 | 103 | 12,314 | |||||||||
de CV | ||||||||||||
HeidelbergCement AG | 400 | 37 | Producer Durables - 5.0% | |||||||||
Holmen AB Class B | 740 | 31 | 3M Co. | 694 | 136 | |||||||
Imerys SA | 2,464 | 212 | Abertis Infraestructuras SA | 58,327 | 1,025 | |||||||
Impala Platinum Holdings, Ltd.(Æ) | 45,869 | 148 | Accenture PLC Class A | 739 | 90 | |||||||
Ingersoll-Rand PLC | 1,220 | 108 | Acciona SA | 369 | 30 | |||||||
International Paper Co. | 6,659 | 359 | ACS Actividades de Construccion y | |||||||||
Ivanhoe Mines, Ltd. Class A(Æ) | 37,610 | 132 | Servicios SA | 1,097 | 41 | |||||||
Johnson Matthey PLC | 749 | 29 | Aena SA(Þ) | 4,245 | 749 | |||||||
KGHM Polska Miedz SA | 7,915 | 252 | AerCap Holdings NV(Æ) | 597 | 27 | |||||||
Kingboard Chemical Holdings, Ltd. | 30,500 | 110 | Aeroports de Paris | 1,593 | 212 | |||||||
Kinross Gold Corp.(Æ) | 87,582 | 306 | Airbus Group SE | 3,431 | 277 | |||||||
Kumho Petrochemical Co., Ltd. | 3,226 | 216 | Allegion PLC | 573 | 45 | |||||||
Kuraray Co., Ltd. | 2,500 | 40 | ANA Holdings, Inc. | 32,000 | 96 | |||||||
Lanxess AG | 2,915 | 210 | Andritz AG | 4,291 | 238 | |||||||
LG Chem, Ltd. | 839 | 202 | Atlantia SpA | 39,815 | 1,009 | |||||||
Linde AG | 1,189 | 214 | Atlas Copco AB Class A | 1,168 | 44 | |||||||
Luks Group Vietnam Holdings Co., Ltd. | 76,000 | 27 | Atlas Copco AB Class B | 897 | 30 | |||||||
Lundin Gold, Inc.(Æ) | 40,938 | 177 | BAE Systems PLC | 3,422 | 28 | |||||||
LyondellBasell Industries NV Class A | 301 | 26 | BBA Aviation PLC | 54,386 | 219 | |||||||
Methanex Corp. | 4,113 | 189 | Boeing Co. (The) | 620 | 115 | |||||||
MHP SA - GDR | 30,043 | 310 | Bollore SA | 8,521 | 35 | |||||||
Mitsubishi Logistics Corp. | 4,000 | 52 | Bucher Industries AG | 100 | 32 | |||||||
MMC Norilsk Nickel PJSC - ADR | 12,409 | 190 | Canon, Inc. | 3,100 | 103 | |||||||
Monsanto Co. | 879 | 103 | Carlisle Cos., Inc. | 259 | 26 | |||||||
New Gold, Inc.(Æ) | 33,050 | 94 | CCR SA | 62,546 | 349 | |||||||
Newcrest Mining, Ltd. | 31,734 | 507 | Central Japan Railway Co. | 500 | 84 | |||||||
NexGen Energy, Ltd.(Æ) | 18,861 | 41 | CH Robinson Worldwide, Inc. | 343 | 25 | |||||||
Northern Dynasty Minerals, Ltd.(Æ) | 132,446 | 211 | China Merchants Port Holdings Co., Ltd. | 242,000 | 692 | |||||||
Novagold Resources, Inc.(Æ) | 9,327 | 39 | China Railway Group, Ltd. Class H | 168,000 | 142 | |||||||
Novolipetsk Steel PJSC - GDR | 8,053 | 152 | Cintas Corp. | 717 | 88 | |||||||
Platform Specialty Products Corp.(Æ) | 31,704 | 449 | COSCO SHIPPING Ports, Ltd. | 442,000 | 484 | |||||||
POSCO | 1,760 | 416 | CoStar Group, Inc.(Æ) | 1,499 | 361 | |||||||
Praxair, Inc. | 1,643 | 205 | CSX Corp. | 13,488 | 686 | |||||||
PTT Global Chemical PCL | 73,600 | 160 | Cummins, Inc. | 245 | 37 | |||||||
Royal Gold, Inc. | 3,867 | 273 | Danaher Corp. | 1,972 | 164 | |||||||
RPC Group PLC | 21,838 | 229 | Danone SA | 6,012 | 420 | |||||||
Safestore Holdings PLC(ö) | 9,232 | 48 | Deere & Co. | 244 | 27 | |||||||
Seabridge Gold, Inc.(Æ) | 3,622 | 37 | Deutsche Lufthansa AG | 1,814 | 31 | |||||||
Shin-Etsu Chemical Co., Ltd. | 1,600 | 139 | Diana Shipping, Inc.(Æ) | 25,183 | 100 | |||||||
Showa Denko KK | 11,800 | 226 | DSV A/S | 1,060 | 59 | |||||||
Siemens AG | 2,903 | 417 | East Japan Railway Co. | 18,300 | 1,637 | |||||||
Silver Wheaton Corp. | 12,310 | 246 | Eaton Corp. PLC | 2,218 | 168 | |||||||
Smiths Group PLC | 1,440 | 31 | Expeditors International of Washington, | 483 | 27 | |||||||
Solvay SA | 1,643 | 209 | Inc. | |||||||||
Sonoco Products Co. | 803 | 42 | Fimalac | 239 | 28 | |||||||
Summit Materials, Inc. Class A(Æ) | 1,514 | 39 | Fortive Corp. | 519 | 33 | |||||||
Symrise AG | 3,378 | 236 | General Dynamics Corp. | 1,557 | 302 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 669
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
General Electric Co. | 1,421 | 41 | Shimizu Corp. | 2,000 | 19 | ||||||
Georg Fischer AG | 29 | 27 | Skanska AB Class B | 1,137 | 27 | ||||||
GKN PLC | 5,945 | 28 | Sojitz Corp. | 38,800 | 99 | ||||||
Golden Ocean Group, Ltd.(Æ) | 14,970 | 116 | Stagecoach Group PLC | 13,444 | 35 | ||||||
Groupe Eurotunnel SE | 82,183 | 903 | Stanley Black & Decker, Inc. | 380 | 52 | ||||||
Grupo Aeroportuario del Pacifico SAB de | 31,950 | 329 | Taisei Corp. | 29,000 | 221 | ||||||
CV Class B | Temp Holdings Co., Ltd. | 5,700 | 107 | ||||||||
Guangshen Railway Co., Ltd. Class H | 274,000 | 149 | Textron, Inc. | 563 | 26 | ||||||
Hakuhodo DY Holdings, Inc. | 2,200 | 27 | Toppan Printing Co., Ltd. | 8,000 | 80 | ||||||
Hankyu Hanshin Holdings, Inc. | 800 | 26 | Transurban Group - ADR(Æ) | 194,047 | 1,773 | ||||||
Hexagon AB Class B | 685 | 30 | Trimble Navigation, Ltd.(Æ) | 8,937 | 317 | ||||||
Hochtief AG | 168 | 30 | Tsakos Energy Navigation, Ltd. | 22,644 | 104 | ||||||
Honeywell International, Inc. | 1,073 | 141 | Union Pacific Corp. | 4,045 | 453 | ||||||
Hubbell, Inc. Class B | 225 | 25 | United Continental Holdings, Inc.(Æ) | 458 | 32 | ||||||
IHS Markit, Ltd.(Æ) | 28,886 | 1,254 | United Technologies Corp. | 1,547 | 184 | ||||||
Illinois Tool Works, Inc. | 867 | 120 | Vinci SA | 2,555 | 218 | ||||||
Japan Steel Works, Ltd. (The) | 22,000 | 353 | Waste Management, Inc. | 1,973 | 144 | ||||||
Jiangsu Expressway Co., Ltd. Class H | 370,000 | 546 | Weir Group PLC (The) | 4,804 | 124 | ||||||
Johnson Controls International PLC | 657 | 27 | WESCO International, Inc.(Æ) | 2,830 | 172 | ||||||
Kajima Corp. | 14,000 | 95 | West Japan Railway Co. | 2,100 | 140 | ||||||
Kamigumi Co., Ltd. | 44,000 | 401 | WorleyParsons, Ltd.(Æ) | 13,678 | 116 | ||||||
Kansas City Southern | 11,947 | 1,076 | Xerox Corp. | 26,300 | 189 | ||||||
KBR, Inc. | 2,515 | 35 | |||||||||
Komatsu, Ltd. | 10,000 | 267 | 25,471 | ||||||||
Kone OYJ Class B | 4,573 | 210 | Technology - 6.0% | ||||||||
Konecranes OYJ | 5,489 | 229 | AAC Technologies Holdings, Inc. | 20,500 | 300 | ||||||
Koninklijke Vopak NV | 932 | 42 | Adobe Systems, Inc.(Æ) | 6,705 | 897 | ||||||
Kurita Water Industries, Ltd. | 6,800 | 176 | Advanced Micro Devices, Inc.(Æ) | 24,788 | 330 | ||||||
L3 Technologies, Inc. | 161 | 28 | Advanced Semiconductor Engineering, | ||||||||
Lockheed Martin Corp. | 348 | 94 | Inc. | 145,000 | 182 | ||||||
Loomis AB Class B | 4,000 | 145 | Alibaba Group Holding, Ltd. - ADR(Æ) | 10,556 | 1,220 | ||||||
Macquarie Infrastructure Corp. | 355 | 29 | Alphabet, Inc. Class A(Æ) | 1,998 | 1,846 | ||||||
Marubeni Corp. | 14,100 | 87 | Alphabet, Inc. Class C(Æ) | 1,494 | 1,354 | ||||||
McGraw Hill Financial, Inc. | 4,636 | 622 | Amdocs, Ltd. | 1,479 | 91 | ||||||
Meggitt PLC | 16,639 | 100 | Amphenol Corp. Class A | 1,500 | 108 | ||||||
Middleby Corp.(Æ) | 2,843 | 387 | Ansys, Inc.(Æ) | 316 | 35 | ||||||
Milacron Holdings Corp.(Æ) | 1,718 | 32 | Apple, Inc. | 11,597 | 1,665 | ||||||
Mitsubishi Corp. | 18,000 | 388 | Applied Materials, Inc. | 2,367 | 96 | ||||||
Mitsui & Co., Ltd. | 34,100 | 482 | Arrow Electronics, Inc.(Æ) | 369 | 26 | ||||||
Nagoya Railroad Co., Ltd. | 5,000 | 23 | Assa Abloy AB Class B | 1,410 | 31 | ||||||
Nifco, Inc. | 500 | 25 | Atos SE | 943 | 124 | ||||||
Nippon Express Co., Ltd. | 5,000 | 27 | Autodesk, Inc.(Æ) | 2,974 | 268 | ||||||
Northrop Grumman Corp. | 501 | 123 | Avnet, Inc. | 5,553 | 215 | ||||||
Obayashi Corp. | 3,200 | 31 | Baidu, Inc. - ADR(Æ) | 4,380 | 789 | ||||||
Orbital ATK, Inc. | 320 | 32 | Broadcom, Ltd. | 810 | 179 | ||||||
Organo Corp. | 26,000 | 119 | Brocade Communications Systems, Inc. | 9,930 | 125 | ||||||
Park24 Co., Ltd. | 1,600 | 41 | CA, Inc. | 844 | 28 | ||||||
Paychex, Inc. | 754 | 45 | Capgemini SA | 1,120 | 112 | ||||||
Publicis Groupe SA - ADR | 650 | 47 | China Unicom Hong Kong, Ltd. | 460,000 | 596 | ||||||
Raytheon Co. | 762 | 118 | Chipbond Technology Corp. | 80,000 | 119 | ||||||
Rentokil Initial PLC | 51,269 | 165 | Cisco Systems, Inc. | 8,623 | 294 | ||||||
Republic Services, Inc. Class A | 1,921 | 121 | Conduent, Inc.(Æ) | 2,299 | 37 | ||||||
Rockwell Collins, Inc. | 1,694 | 176 | Corning, Inc. | 4,484 | 129 | ||||||
Roper Technologies, Inc. | 173 | 38 | Criteo SA - ADR(Æ) | 11,970 | 651 | ||||||
Royal Mail PLC | 5,547 | 29 | Dolby Laboratories, Inc. Class A | 850 | 45 | ||||||
Sandvik AB | 1,929 | 31 | DXC Technology Co. | 649 | 49 |
See accompanying notes which are an integral part of the financial statements.
670 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
EchoStar Corp. Class A(Æ) | 506 | 29 | Virgin Money Holdings UK PLC Class A | 105,891 | 435 | ||||||
Facebook, Inc. Class A(Æ) | 15,963 | 2,397 | VMware, Inc. Class A(Æ) | 1,184 | 111 | ||||||
GN Store Nord A/S | 1,798 | 47 | Vodafone Group PLC | 38,638 | 100 | ||||||
Harris Corp. | 245 | 27 | Web.com Group, Inc.(Æ) | 10,222 | 197 | ||||||
Hewlett Packard Enterprise Co. | 7,565 | 141 | Weibo Corp. - ADR(Æ) | 1,947 | 109 | ||||||
Hikari Tsushin, Inc. | 700 | 67 | Workday, Inc. Class A(Æ) | 5,839 | 510 | ||||||
Hollysys Automation Technologies, Ltd. | 1,551 | 25 | Yahoo!, Inc.(Æ) | 588 | 28 | ||||||
Hon Hai Precision Industry Co., Ltd. | 106,000 | 347 | Yandex NV Class A(Æ) | 18,114 | 495 | ||||||
Hua Hong Semiconductor, Ltd.(Þ) | 171,000 | 242 | 30,345 | ||||||||
Iliad SA | 2,957 | 718 | |||||||||
Infineon Technologies AG - ADR | 1,956 | 40 | Utilities - 4.6% | ||||||||
Infosys, Ltd. - ADR | 36,360 | 529 | ALLETE, Inc. | 3,010 | 210 | ||||||
Infrastrutture Wireless Italiane SpA(Þ) | 51,243 | 284 | Alliant Energy Corp. | 7,543 | 297 | ||||||
Intel Corp. | 10,203 | 369 | Ameren Corp. | 2,028 | 111 | ||||||
International Business Machines Corp. | 1,129 | 181 | American Electric Power Co., Inc. | 19,678 | 1,335 | ||||||
Itochu Techno-Solutions Corp. | 1,000 | 29 | American Water Works Co., Inc. | 358 | 29 | ||||||
Juniper Networks, Inc. | 976 | 29 | AT&T, Inc. | 7,123 | 282 | ||||||
Just Eat PLC(Æ) | 51,380 | 384 | Atmos Energy Corp. | 352 | 29 | ||||||
Leidos Holdings, Inc. | 513 | 27 | Bezeq The Israeli Telecommunication | 14,440 | 24 | ||||||
LG Innotek Co., Ltd. | 1,594 | 184 | Corp., Ltd. | ||||||||
Mail.Ru Group, Ltd. - GDR(Æ) | 5,448 | 143 | CenterPoint Energy, Inc. | 1,268 | 36 | ||||||
Match Group, Inc.(Æ) | 1,627 | 30 | Centrais Eletricas Brasileiras SA(Æ) | 99,011 | 564 | ||||||
Microchip Technology, Inc. | 5,611 | 424 | CenturyLink, Inc. | 1,204 | 31 | ||||||
Microsoft Corp. | 10,373 | 710 | Chubu Electric Power Co., Inc. | 3,600 | 48 | ||||||
Mitsubishi Electric Corp. | 5,500 | 77 | Cia de Saneamento Basico do Estado de | 14,997 | 138 | ||||||
Sao Paulo(Æ) | |||||||||||
MYOB Group, Ltd. | 93,125 | 245 | Cia de Saneamento de Minas | 11,605 | 132 | ||||||
NetEase, Inc. - ADR | 981 | 260 | Gerais-COPASA(Æ) | ||||||||
Nintendo Co., Ltd. | 1,100 | 277 | CMS Energy Corp. | 2,406 | 109 | ||||||
Nokia OYJ - ADR | 28,942 | 166 | Consolidated Edison, Inc. | 1,353 | 107 | ||||||
NTT DOCOMO, Inc. | 4,000 | 96 | Deutsche Telekom AG | 11,396 | 200 | ||||||
NVC Lighting Holdings, Ltd. | 306,000 | 35 | Dominion Resources, Inc. | 15,523 | 1,202 | ||||||
Oracle Corp. | 18,016 | 810 | DTE Energy Co. | 1,157 | 121 | ||||||
Pegatron Corp. | 69,000 | 203 | Duke Energy Corp. | 1,865 | 154 | ||||||
QUALCOMM, Inc. | 496 | 27 | Edison International | 1,272 | 102 | ||||||
Quanta Computer, Inc. | 85,000 | 176 | El Paso Electric Co. | 3,808 | 196 | ||||||
Realtek Semiconductor Corp. | 74,000 | 250 | Electricite de France SA | 44,091 | 369 | ||||||
Red Hat, Inc.(Æ) | 4,610 | 406 | Enagas SA | 4,024 | 106 | ||||||
Salesforce.com, Inc.(Æ) | 5,271 | 454 | Enbridge, Inc. | 37,577 | 1,557 | ||||||
Samsung Electronics Co., Ltd. | 792 | 1,547 | Encana Corp. | 15,143 | 162 | ||||||
Sanshin Electronics Co., Ltd. | 3,800 | 45 | Enel SpA | 29,004 | 138 | ||||||
SAP SE - ADR | 7,424 | 745 | Energias de Portugal SA | 33,493 | 111 | ||||||
ServiceNow, Inc.(Æ) | 6,014 | 568 | Engie SA | 15,403 | 217 | ||||||
Software AG | 714 | 31 | Entergy Corp. | 1,229 | 94 | ||||||
SS&C Technologies Holdings, Inc. | 7,190 | 264 | Eversource Energy | 19,471 | 1,157 | ||||||
Taiwan Semiconductor Manufacturing | 7,958 | 263 | Exelon Corp. | 2,613 | 90 | ||||||
Co., Ltd. - ADR | Federal Grid PJSC | 85,510,557 | 295 | ||||||||
Taiwan Semiconductor Manufacturing | 68,000 | 437 | FirstEnergy Corp. | 869 | 26 | ||||||
TE Co. Connectivity, , Ltd. Ltd. | 362 | 28 | Fortum OYJ | 6,966 | 101 | ||||||
Telekomunikasi Indonesia Persero Tbk | 252,300 | 83 | Freenet AG | 6,289 | 197 | ||||||
PT | Gran Tierra Energy, Inc.(Æ) | 23,722 | 60 | ||||||||
Tencent Holdings, Ltd. | 30,500 | 955 | Great Plains Energy, Inc. | 1,229 | 36 | ||||||
Texas Instruments, Inc. | 577 | 46 | Hawaiian Electric Industries, Inc. | 1,076 | 36 | ||||||
Tim Participacoes SA | 43,376 | 140 | Huaneng Renewables Corp., Ltd. Class | 404,000 | 141 | ||||||
Tripod Technology Corp. | 29,000 | 82 | H | ||||||||
Ultimate Software Group, Inc.(Æ) | 1,480 | 300 | Iberdrola SA | 25,251 | 182 | ||||||
KDDI Corp. | 9,200 | 244 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 671
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||||
Principal | Fair | Principal | Fair | ||||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||||
or Shares | $ | or Shares | $ | ||||||||||
KT Corp. | 10,413 | 295 | Samsung Electronics Co., Ltd. | 153 | 236 | ||||||||
KT Corp. - ADR | 12,210 | 203 | |||||||||||
MEG Energy Corp. Class A(Æ) | 39,178 | 177 | Utilities - 0.0% | ||||||||||
MTN Group, Ltd. | 48,940 | 464 | Centrais Eletricas Brasileiras SA | 6,352 | 46 | ||||||||
National Grid PLC | 172,088 | 2,228 | |||||||||||
NextEra Energy, Inc. | 14,675 | 1,959 | Total Preferred Stocks | ||||||||||
Nippon Telegraph & Telephone Corp. | 2,300 | 98 | (cost $1,192) | 1,170 | |||||||||
NiSource, Inc. | 13,296 | 322 | |||||||||||
Osaka Gas Co., Ltd. | 10,000 | 37 | Options Purchased - 0.1% | ||||||||||
PG&E Corp. | 24,071 | 1,614 | (Number of Contracts) | ||||||||||
Pinnacle West Capital Corp. | 1,119 | 95 | Fannie Mae Bonds | ||||||||||
Power Assets Holdings, Ltd. | 32,000 | 288 | Jun 2017 99.25 Call (1) | USD | 47,000 | (ÿ) | 404 | ||||||
PPL Corp. | 3,186 | 121 | Swaptions | ||||||||||
Public Service Enterprise Group, Inc. | 2,215 | 98 | (Fund Receives/Fund | ||||||||||
Rubis SCA | 2,865 | 291 | Pays) | ||||||||||
USD 3 Month LIBOR/ USD | |||||||||||||
RusHydro PJSC | 14,583,631 | 229 | 2.152% | ||||||||||
RusHydro PJSC - ADR | 87,799 | 131 | May 2017 Call (0) | USD | 3,988 | (ÿ) | 13 | ||||||
RWE AG(Æ) | 1,840 | 30 | Total Options Purchased | ||||||||||
SCANA Corp. | 418 | 28 | (cost $303) | 417 | |||||||||
Scottish & Southern Energy PLC | 19,325 | 348 | |||||||||||
Sempra Energy | 372 | 42 | Short-Term Investments - 18.9% | ||||||||||
Snam Rete Gas SpA | 23,486 | 104 | Avaya, Inc. 1st Lien Term Loan B4 | ||||||||||
Southern Co. (The) | 2,708 | 135 | 8.500% due 01/23/18 (Ê) | 250 | 256 | ||||||||
Suez Environnement Co. | 2,714 | 45 | Poland Government Bond | ||||||||||
TDC AS | 5,184 | 28 | Series 1017 | ||||||||||
Telefonica SA - ADR | 9,285 | 102 | 5.250% due 10/25/17 | PLN | 12,270 | 3,219 | |||||||
Telenor ASA | 1,983 | 32 | Romania Government Bond | ||||||||||
TIM Participacoes SA - ADR | 5,182 | 83 | Series 10YR | ||||||||||
Tohoku Electric Power Co., Inc. | 2,800 | 37 | 6.750% due 06/11/17 (~) | RON | 4,800 | 1,160 | |||||||
Tokyo Gas Co., Ltd. | 121,000 | 563 | Sprint Communications, Inc. | ||||||||||
UGI Corp. | 4,840 | 243 | 8.375% due 08/15/17 | 400 | 407 | ||||||||
United Utilities Group PLC | 26,847 | 338 | Tesco PLC | ||||||||||
Vectren Corp. | 741 | 44 | Series REGS | ||||||||||
Veolia Environnement SA | 1,602 | 30 | 5.500% due 11/15/17 | 350 | 356 | ||||||||
Verbund AG Class A | 6,230 | 103 | U.S. Cash Management Fund | 86,830,678 | (8) | 86,849 | |||||||
Verizon Communications, Inc. | 7,359 | 338 | United States Treasury Bills | ||||||||||
WEC Energy Group, Inc. | 1,647 | 100 | 0.711% due 05/18/17 (ç)(~)(§) | 98 | 98 | ||||||||
Xcel Energy, Inc. | 23,021 | 1,037 | 0.669% due 06/01/17 (~) | 1,300 | 1,299 | ||||||||
23,236 | 0.743% due 07/06/17 (~)(§) | 77 | 77 | ||||||||||
0.744% due 07/13/17 (~)(§) | 426 | 425 | |||||||||||
Total Common Stocks | 0.770% due 07/20/17 (~)(§) | 281 | 281 | ||||||||||
(cost $206,568) | 212,820 | 0.975% due 10/26/17 (~) | 1,800 | 1,791 | |||||||||
Preferred Stocks - 0.2% | 0.012% due 11/02/17 (ç)(~) | 73 | 73 | ||||||||||
Consumer Discretionary - 0.0% | |||||||||||||
Volkswagen AG | 193 | 31 | Total Short-Term Investments | ||||||||||
(cost $96,222) | 96,291 | ||||||||||||
Total Investments 102.3% | |||||||||||||
Consumer Staples - 0.0% | |||||||||||||
Ito En, Ltd. | 1,500 | 28 | (identified cost $513,839) | 521,319 | |||||||||
Financial Services - 0.2% | Other Assets and Liabilities, | ||||||||||||
Itau Unibanco Holding SA | 47,064 | 582 | Net - (2.3%) | (11,621 | ) | ||||||||
Materials and Processing - 0.0% | |||||||||||||
Gerdau SA | 80,406 | 247 | Net Assets - 100.0% | 509,698 | |||||||||
Technology - 0.0% |
See accompanying notes which are an integral part of the financial statements.
672 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Number of | Notional | Expiration | (Depreciation) | ||||||
Contracts | Amount | Date | $ | ||||||
Long Positions | |||||||||
Amsterdam Index Futures | 16 | EUR | 1,653 | 05/17 | 40 | ||||
Australia 10 Year Government Bond Futures | 225 | AUD | 29,187 | 06/17 | 594 | ||||
CAC40 Euro Index Futures | 88 | EUR | 4,589 | 05/17 | 262 | ||||
DAX Index Futures | 14 | EUR | 4,364 | 06/17 | 166 | ||||
EURO STOXX 50 Index Futures | 83 | EUR | 2,912 | 06/17 | 151 | ||||
FTSE/MIB Index Futures | 10 | EUR | 1,015 | 06/17 | 55 | ||||
Hang Seng Index Futures | 31 | HKD | 38,070 | 05/17 | 73 | ||||
IBEX 35 Index Futures | 14 | EUR | 1,502 | 05/17 | 79 | ||||
OMXS30 Index Futures | 68 | SEK | 11,002 | 05/17 | 54 | ||||
S&P Financial Select Sector Index Futures | 34 | USD | 2,460 | 06/17 | (87 | ) | |||
TOPIX Index Futures | 28 | JPY | 428,400 | 06/17 | (57 | ) | |||
United States 2 Year Treasury Note Futures | 9 | USD | 1,949 | 06/17 | 7 | ||||
United States 5 Year Treasury Note Futures | 22 | USD | 2,605 | 06/17 | 36 | ||||
United States 10 Year Treasury Note Futures | 504 | USD | 63,362 | 06/17 | 1,163 | ||||
United States Long Bond Futures | 14 | USD | 2,142 | 06/17 | 81 | ||||
United States Ultra Treasury Bond Futures | 5 | USD | 815 | 06/17 | 4 | ||||
Short Positions | |||||||||
Euro-Bund Futures | 114 | EUR | 18,443 | 06/17 | (325 | ) | |||
FTSE 100 Index Futures | 12 | GBP | 860 | 06/17 | 18 | ||||
Long Gilt Futures | 118 | GBP | 15,136 | 06/17 | (332 | ) | |||
MSCI Emerging Markets Mini Index Futures | 278 | USD | 13,608 | 06/17 | (101 | ) | |||
Russell 1000 Mini Index Futures | 20 | USD | 1,320 | 06/17 | (21 | ) | |||
S&P 500 E-Mini Index Futures | 191 | USD | 22,734 | 06/17 | (333 | ) | |||
S&P Mid 400 E-Mini Index Futures | 12 | USD | 2,076 | 06/17 | (37 | ) | |||
S&P/TSX 60 Index Futures | 30 | CAD | 5,501 | 06/17 | (31 | ) | |||
SPI 200 Index Futures | 19 | AUD | 2,809 | 06/17 | (59 | ) | |||
United States 2 Year Treasury Note Futures | 91 | USD | 19,711 | 06/17 | (67 | ) | |||
United States 5 Year Treasury Note Futures | 7 | USD | 829 | 06/17 | 2 | ||||
United States 10 Year Treasury Note Futures | 16 | USD | 2,012 | 06/17 | (22 | ) | |||
United States Ultra Treasury Bond Futures | 2 | USD | 326 | 06/17 | (7 | ) | |||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 1,306 | ||||||||
Options Written | |||||||||
Amounts in thousands (except contract amounts) | |||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||
Fannie Mae Bonds | Put | 1 | 99.25 | USD | 47,000 | 06/06/17 | (175 | ) | |
Swaptions | |||||||||
(Fund Receives/Fund Pays) | |||||||||
USD 2.262%/USD 3 Month LIBOR | Call | 1 | 0.00 | USD | 1,994 | 05/30/17 | (13 | ) | |
Total Liability for Options Written (premiums received $303) | (188 | ) |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 673
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||
Number of | Premiums | |||||
Contracts | Received | |||||
Outstanding March 7, 2017 | — | $ | — | |||
Opened | 8 | 535 | ||||
Closed | (6 | ) | (232 | ) | ||
Expired | — | — | ||||
Outstanding April 30, 2017 | 2 | $ | 303 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 691 | AUD | 926 | 05/15/17 | 2 | |
Bank of America | USD | 878 | CAD | 1,197 | 05/15/17 | (1 | ) |
Bank of America | USD | 753 | CHF | 746 | 05/15/17 | (2 | ) |
Bank of America | USD | 3,078 | EUR | 2,819 | 05/15/17 | (5 | ) |
Bank of America | USD | 341 | EUR | 317 | 06/21/17 | 6 | |
Bank of America | USD | 1,619 | GBP | 1,253 | 05/15/17 | 4 | |
Bank of America | USD | 933 | HKD | 7,255 | 05/15/17 | — | |
Bank of America | USD | 2,071 | JPY | 231,096 | 05/15/17 | 3 | |
Bank of America | USD | 1,772 | KRW | 2,010,879 | 05/15/17 | (4 | ) |
Bank of America | USD | 44 | PLN | 170 | 05/04/17 | — | |
Bank of America | USD | 1,621 | TWD | 48,932 | 05/15/17 | 1 | |
Bank of America | AUD | 266 | USD | 203 | 05/15/17 | 4 | |
Bank of America | AUD | 926 | USD | 691 | 06/07/17 | (2 | ) |
Bank of America | CAD | 356 | USD | 267 | 05/15/17 | 6 | |
Bank of America | CAD | 1,197 | USD | 878 | 06/07/17 | 1 | |
Bank of America | CAD | 850 | USD | 638 | 06/21/17 | 14 | |
Bank of America | CHF | 213 | USD | 213 | 05/15/17 | (1 | ) |
Bank of America | CHF | 746 | USD | 754 | 06/07/17 | 2 | |
Bank of America | CNY | 44,259 | USD | 6,344 | 06/21/17 | (53 | ) |
Bank of America | EUR | 8,525 | USD | 9,129 | 05/15/17 | (162 | ) |
Bank of America | EUR | 2,819 | USD | 3,082 | 06/07/17 | 5 | |
Bank of America | EUR | 4,300 | USD | 4,664 | 06/21/17 | (32 | ) |
Bank of America | GBP | 366 | USD | 458 | 05/15/17 | (17 | ) |
Bank of America | GBP | 1,253 | USD | 1,620 | 06/07/17 | (4 | ) |
Bank of America | GBP | 2,260 | USD | 2,826 | 06/21/17 | (105 | ) |
Bank of America | HKD | 2,071 | USD | 267 | 05/15/17 | — | |
Bank of America | HKD | 7,255 | USD | 934 | 06/07/17 | — | |
Bank of America | JPY | 69,257 | USD | 620 | 05/15/17 | (2 | ) |
Bank of America | JPY | 231,096 | USD | 2,072 | 06/07/17 | (3 | ) |
Bank of America | KRW | 112,306 | USD | 101 | 05/15/17 | 2 | |
Bank of America | KRW | 1,898,573 | USD | 1,707 | 05/15/17 | 38 | |
Bank of America | KRW | 84,312 | USD | 74 | 06/07/17 | — | |
Bank of America | KRW | 2,010,879 | USD | 1,772 | 06/07/17 | 4 | |
Bank of America | KRW | 19,430 | USD | 17 | 06/21/17 | — | |
Bank of America | SEK | 895 | USD | 100 | 05/15/17 | (1 | ) |
Bank of America | SGD | 123 | USD | 88 | 05/15/17 | — | |
Bank of America | TWD | 1,657 | USD | 55 | 05/15/17 | — | |
Bank of America | TWD | 47,275 | USD | 1,567 | 05/15/17 | (1 | ) |
Bank of America | TWD | 912 | USD | 30 | 06/07/17 | — | |
Bank of America | TWD | 48,932 | USD | 1,622 | 06/07/17 | (2 | ) |
Bank of America | TWD | 20,912 | USD | 677 | 06/21/17 | (17 | ) |
See accompanying notes which are an integral part of the financial statements.
674 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of Montreal | USD | 4,912 | AUD | 6,533 | 05/23/17 | (21 | ) |
Bank of Montreal | USD | 5,708 | AUD | 7,593 | 05/23/17 | (25 | ) |
Bank of Montreal | USD | 2,708 | EUR | 2,521 | 05/23/17 | 40 | |
Bank of Montreal | DKK | 34,691 | USD | 5,010 | 05/23/17 | (76 | ) |
Bank of Montreal | EUR | 5,420 | USD | 5,823 | 05/23/17 | (86 | ) |
Bank of New York | USD | 2,751 | GBP | 2,140 | 05/23/17 | 22 | |
Bank of New York | USD | 2,689 | JPY | 292,590 | 05/23/17 | (63 | ) |
Bank of New York | JPY | 629,068 | USD | 5,782 | 05/23/17 | 135 | |
Bank of New York | SEK | 44,757 | USD | 4,996 | 05/23/17 | (62 | ) |
Citigroup | USD | 691 | AUD | 926 | 05/15/17 | 2 | |
Citigroup | USD | 877 | CAD | 1,197 | 05/15/17 | — | |
Citigroup | USD | 753 | CHF | 746 | 05/15/17 | (2 | ) |
Citigroup | USD | 3,079 | EUR | 2,819 | 05/15/17 | (7 | ) |
Citigroup | USD | 163 | EUR | 150 | 06/21/17 | 1 | |
Citigroup | USD | 1,618 | GBP | 1,253 | 05/15/17 | 5 | |
Citigroup | USD | 933 | HKD | 7,255 | 05/15/17 | — | |
Citigroup | USD | 2,071 | JPY | 231,096 | 05/15/17 | 3 | |
Citigroup | USD | 1,501 | JPY | 166,300 | 06/21/17 | (6 | ) |
Citigroup | AUD | 926 | USD | 691 | 06/07/17 | (2 | ) |
Citigroup | AUD | 720 | USD | 548 | 06/21/17 | 10 | |
Citigroup | CAD | 1,197 | USD | 878 | 06/07/17 | — | |
Citigroup | CAD | 400 | USD | 299 | 06/21/17 | 6 | |
Citigroup | CHF | 746 | USD | 754 | 06/07/17 | 2 | |
Citigroup | EUR | 2,819 | USD | 3,083 | 06/07/17 | 6 | |
Citigroup | GBP | 1,253 | USD | 1,619 | 06/07/17 | (5 | ) |
Citigroup | HKD | 7,255 | USD | 934 | 06/07/17 | — | |
Citigroup | JPY | 231,096 | USD | 2,073 | 06/07/17 | (3 | ) |
HSBC | USD | 691 | AUD | 926 | 05/15/17 | 2 | |
HSBC | USD | 878 | CAD | 1,197 | 05/15/17 | (1 | ) |
HSBC | USD | 753 | CHF | 746 | 05/15/17 | (3 | ) |
HSBC | USD | 1,720 | CNY | 11,921 | 06/06/17 | 4 | |
HSBC | USD | 3,082 | EUR | 2,819 | 05/15/17 | (9 | ) |
HSBC | USD | 1,621 | GBP | 1,253 | 05/15/17 | 2 | |
HSBC | USD | 933 | HKD | 7,255 | 05/15/17 | — | |
HSBC | USD | 183 | IDR | 2,457,141 | 06/14/17 | — | |
HSBC | USD | 2,074 | JPY | 231,096 | 05/15/17 | — | |
HSBC | USD | 2,669 | MXN | 50,727 | 06/21/17 | 4 | |
HSBC | USD | 110 | PLN | 439 | 06/01/17 | 3 | |
HSBC | USD | 100 | RON | 426 | 06/30/17 | 2 | |
HSBC | USD | 140 | THB | 4,829 | 07/31/17 | — | |
HSBC | USD | 50 | TRY | 189 | 07/31/17 | 2 | |
HSBC | USD | 260 | ZAR | 3,596 | 06/30/17 | 6 | |
HSBC | AUD | 926 | USD | 691 | 06/07/17 | (2 | ) |
HSBC | CAD | 1,197 | USD | 878 | 06/07/17 | 1 | |
HSBC | CHF | 746 | USD | 754 | 06/07/17 | 3 | |
HSBC | EUR | 2,819 | USD | 3,086 | 06/07/17 | 10 | |
HSBC | GBP | 1,253 | USD | 1,622 | 06/07/17 | (2 | ) |
HSBC | HKD | 7,255 | USD | 934 | 06/07/17 | — | |
HSBC | HUF | 23,169 | USD | 80 | 07/31/17 | (1 | ) |
HSBC | ILS | 3,126 | USD | 860 | 07/31/17 | (6 | ) |
HSBC | JPY | 231,096 | USD | 2,075 | 06/07/17 | — | |
JPMorgan Chase | USD | 610 | ARS | 10,205 | 10/10/17 | 3 | |
JPMorgan Chase | USD | 468 | CLP | 311,688 | 10/30/17 | (5 | ) |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 675
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
JPMorgan Chase | USD | 100 | COP | 289,600 | 06/15/17 | (2 | ) |
JPMorgan Chase | USD | 471 | CZK | 11,469 | 11/03/17 | — | |
JPMorgan Chase | USD | 387 | PLN | 1,506 | 06/01/17 | 1 | |
JPMorgan Chase | USD | 426 | RON | 1,774 | 06/30/17 | — | |
JPMorgan Chase | ARS | 10,388 | USD | 660 | 10/10/17 | 35 | |
JPMorgan Chase | ARS | 11,048 | USD | 660 | 10/10/17 | (3 | ) |
JPMorgan Chase | COP | 2,426,490 | USD | 817 | 06/15/17 | (2 | ) |
JPMorgan Chase | MXN | 3,488 | USD | 183 | 06/21/17 | (1 | ) |
JPMorgan Chase | TRY | 561 | USD | 152 | 06/30/17 | (3 | ) |
JPMorgan Chase | ZAR | 4,114 | USD | 305 | 06/30/17 | — | |
Royal Bank of Canada | USD | 692 | AUD | 926 | 05/15/17 | 2 | |
Royal Bank of Canada | USD | 877 | CAD | 1,197 | 05/15/17 | — | |
Royal Bank of Canada | USD | 753 | CHF | 746 | 05/15/17 | (2 | ) |
Royal Bank of Canada | USD | 3,081 | EUR | 2,819 | 05/15/17 | (8 | ) |
Royal Bank of Canada | USD | 1,621 | GBP | 1,253 | 05/15/17 | 2 | |
Royal Bank of Canada | USD | 933 | HKD | 7,255 | 05/15/17 | — | |
Royal Bank of Canada | USD | 5,752 | ILS | 21,076 | 05/23/17 | 70 | |
Royal Bank of Canada | USD | 2,073 | JPY | 231,096 | 05/15/17 | 1 | |
Royal Bank of Canada | USD | 3,392 | JPY | 387,490 | 06/21/17 | 91 | |
Royal Bank of Canada | USD | 4,960 | NZD | 7,073 | 05/23/17 | (106 | ) |
Royal Bank of Canada | AUD | 926 | USD | 691 | 06/07/17 | (2 | ) |
Royal Bank of Canada | CAD | 1,197 | USD | 878 | 06/07/17 | — | |
Royal Bank of Canada | CHF | 2,691 | USD | 2,704 | 05/23/17 | (4 | ) |
Royal Bank of Canada | CHF | 4,979 | USD | 5,002 | 05/23/17 | (8 | ) |
Royal Bank of Canada | CHF | 746 | USD | 754 | 06/07/17 | 2 | |
Royal Bank of Canada | EUR | 2,819 | USD | 3,084 | 06/07/17 | 8 | |
Royal Bank of Canada | GBP | 3,624 | USD | 4,528 | 05/15/17 | (167 | ) |
Royal Bank of Canada | GBP | 1,253 | USD | 1,622 | 06/07/17 | (2 | ) |
Royal Bank of Canada | HKD | 7,255 | USD | 933 | 06/07/17 | — | |
Royal Bank of Canada | ILS | 9,803 | USD | 2,675 | 05/23/17 | (33 | ) |
Royal Bank of Canada | JPY | 682,109 | USD | 6,110 | 05/15/17 | (12 | ) |
Royal Bank of Canada | JPY | 231,096 | USD | 2,074 | 06/07/17 | (2 | ) |
State Street | USD | 636 | CAD | 850 | 06/21/17 | (13 | ) |
State Street | USD | 32 | EUR | 30 | 04/24/17 | 1 | |
State Street | USD | 105 | EUR | 97 | 05/03/17 | — | |
State Street | USD | 201 | EUR | 187 | 05/26/17 | 3 | |
State Street | USD | 405 | EUR | 377 | 05/26/17 | 6 | |
State Street | USD | 32 | EUR | 30 | 06/21/17 | 1 | |
State Street | USD | 32 | EUR | 30 | 06/21/17 | 1 | |
State Street | USD | 80 | EUR | 75 | 06/21/17 | 2 | |
State Street | USD | 80 | EUR | 75 | 06/21/17 | 2 | |
State Street | USD | 4,841 | EUR | 4,520 | 06/21/17 | 95 | |
State Street | USD | 3,613 | GBP | 2,890 | 06/21/17 | 136 | |
State Street | USD | 92 | HKD | 718 | 05/04/17 | — | |
State Street | USD | 146 | JPY | 16,233 | 05/08/17 | — | |
State Street | USD | 1,408 | SEK | 12,415 | 05/15/17 | (5 | ) |
State Street | USD | 1,223 | SGD | 1,708 | 05/15/17 | (1 | ) |
State Street | AUD | 148 | USD | 113 | 05/15/17 | 2 | |
State Street | AUD | 3,291 | USD | 2,515 | 05/15/17 | 51 | |
State Street | AUD | 82 | USD | 61 | 06/07/17 | — | |
State Street | AUD | 1,562 | USD | 1,177 | 06/21/17 | 8 | |
State Street | CAD | 46 | USD | 35 | 05/15/17 | 1 | |
State Street | CAD | 4,386 | USD | 3,289 | 05/15/17 | 76 |
See accompanying notes which are an integral part of the financial statements.
676 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
State Street | CAD | 44 | USD | 32 | 06/07/17 | — | ||
State Street | CAD | 907 | USD | 675 | 06/21/17 | 10 | ||
State Street | CAD | 870 | USD | 651 | 06/23/17 | 13 | ||
State Street | CHF | 148 | USD | 148 | 05/15/17 | (1 | ) | |
State Street | CHF | 2,623 | USD | 2,628 | 05/15/17 | (11 | ) | |
State Street | CHF | 115 | USD | 116 | 06/07/17 | — | ||
State Street | CNY | 20,650 | USD | 2,975 | 06/21/17 | (9 | ) | |
State Street | EUR | 847 | USD | 905 | 05/15/17 | (18 | ) | |
State Street | EUR | 1,905 | USD | 2,040 | 05/15/17 | (36 | ) | |
State Street | EUR | 227 | USD | 243 | 05/26/17 | (5 | ) | |
State Street | EUR | 440 | USD | 482 | 05/26/17 | 2 | ||
State Street | EUR | 525 | USD | 561 | 05/26/17 | (12 | ) | |
State Street | EUR | 4,718 | USD | 5,046 | 05/26/17 | (98 | ) | |
State Street | EUR | 490 | USD | 535 | 06/07/17 | — | ||
State Street | EUR | 220 | USD | 239 | 06/21/17 | (2 | ) | |
State Street | EUR | 250 | USD | 267 | 06/21/17 | (6 | ) | |
State Street | EUR | 250 | USD | 271 | 06/21/17 | (2 | ) | |
State Street | EUR | 250 | USD | 271 | 06/21/17 | (2 | ) | |
State Street | EUR | 350 | USD | 378 | 06/21/17 | (4 | ) | |
State Street | EUR | 350 | USD | 378 | 06/21/17 | (4 | ) | |
State Street | EUR | 500 | USD | 539 | 06/21/17 | (7 | ) | |
State Street | EUR | 500 | USD | 539 | 06/21/17 | (7 | ) | |
State Street | EUR | 1,000 | USD | 1,083 | 06/21/17 | (9 | ) | |
State Street | EUR | 1,000 | USD | 1,083 | 06/21/17 | (9 | ) | |
State Street | EUR | 3,500 | USD | 3,729 | 06/21/17 | (93 | ) | |
State Street | GBP | 50 | USD | 64 | 04/24/17 | (1 | ) | |
State Street | GBP | 20 | USD | 26 | 05/03/17 | — | ||
State Street | GBP | 128 | USD | 161 | 05/15/17 | (5 | ) | |
State Street | GBP | 893 | USD | 1,116 | 05/15/17 | (40 | ) | |
State Street | GBP | 41 | USD | 53 | 06/07/17 | — | ||
State Street | GBP | 50 | USD | 64 | 06/21/17 | (1 | ) | |
State Street | GBP | 50 | USD | 64 | 06/21/17 | (1 | ) | |
State Street | GBP | 100 | USD | 125 | 06/21/17 | (5 | ) | |
State Street | GBP | 100 | USD | 125 | 06/21/17 | (5 | ) | |
State Street | GBP | 100 | USD | 125 | 06/21/17 | (5 | ) | |
State Street | GBP | 100 | USD | 125 | 06/21/17 | (5 | ) | |
State Street | GBP | 200 | USD | 250 | 06/21/17 | (10 | ) | |
State Street | GBP | 200 | USD | 250 | 06/21/17 | (10 | ) | |
State Street | GBP | 250 | USD | 312 | 06/21/17 | (12 | ) | |
State Street | GBP | 250 | USD | 312 | 06/21/17 | (12 | ) | |
State Street | GBP | 630 | USD | 789 | 06/21/17 | (29 | ) | |
State Street | GBP | 1,500 | USD | 1,827 | 06/21/17 | (118 | ) | |
State Street | GBP | 337 | USD | 421 | 07/21/17 | (17 | ) | |
State Street | GBP | 2,948 | USD | 3,688 | 07/21/17 | (138 | ) | |
State Street | HKD | 1,525 | USD | 196 | 05/15/17 | — | ||
State Street | HKD | 25,424 | USD | 3,275 | 05/15/17 | 5 | ||
State Street | HKD | 866 | USD | 111 | 06/07/17 | — | ||
State Street | JPY | 4,889 | USD | 44 | 05/15/17 | — | ||
State Street | JPY | 168,129 | USD | 1,506 | 05/15/17 | (3 | ) | |
State Street | JPY | 20,350 | USD | 183 | 06/07/17 | — | ||
State Street | KRW | 2,786,140 | USD | 2,501 | 06/21/17 | 51 | ||
State Street | SEK | 460 | USD | 51 | 05/15/17 | (1 | ) | |
State Street | SEK | 11,061 | USD | 1,242 | 05/15/17 | (7 | ) |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 677
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
State Street | SEK | 52,015 | USD | 5,796 | 05/23/17 | (83 | ) | |
State Street | SEK | 465 | USD | 53 | 06/07/17 | — | ||
State Street | SEK | 12,415 | USD | 1,409 | 06/07/17 | 5 | ||
State Street | SGD | 74 | USD | 53 | 05/15/17 | — | ||
State Street | SGD | 1,512 | USD | 1,082 | 05/15/17 | — | ||
State Street | SGD | 38 | USD | 27 | 06/07/17 | — | ||
State Street | SGD | 1,708 | USD | 1,224 | 06/07/17 | 1 | ||
State Street | TWD | 9,090 | USD | 301 | 06/21/17 | (1 | ) | |
UBS | USD | 150 | BRL | 477 | 06/20/17 | (2 | ) | |
UBS | USD | 160 | PHP | 8,078 | 06/13/17 | 1 | ||
UBS | USD | 1,884 | PLN | 7,316 | 06/01/17 | 1 | ||
UBS | USD | 100 | RUB | 5,713 | 06/09/17 | — | ||
UBS | KRW | 1,935,000 | USD | 1,720 | 05/30/17 | 19 | ||
UBS | MXN | 3,440 | USD | 180 | 06/21/17 | (1 | ) | |
UBS | MXN | 4,007 | USD | 210 | 06/21/17 | (1 | ) | |
UBS | MXN | 7,941 | USD | 417 | 06/21/17 | (1 | ) | |
UBS | PLN | 7,316 | USD | 1,884 | 06/01/17 | (1 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (956 | ) |
Interest Rate Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Termination | Fair Value | ||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | ||||
Barclays | USD | 16 | Three Month MIBOR | 1.627 | % | 03/27/19 | — | ||
Barclays | USD | 3,597 | Three Month MIBOR | 1.621 | % | 03/28/19 | (4 | ) | |
Barclays | USD | 4,641 | Three Month MIBOR | 1.591 | % | 03/29/19 | (3 | ) | |
Barclays | USD | 1,611 | Three Month MIBOR | 1.629 | % | 03/30/19 | (2 | ) | |
Barclays | USD | 4,433 | Three Month MIBOR | 1.608 | % | 03/30/19 | (4 | ) | |
Barclays | USD | 3,664 | Three Month MIBOR | 1.606 | % | 03/31/19 | (3 | ) | |
Barclays | USD | 8,556 | Three Month MIBOR | 1.582 | % | 04/06/19 | (3 | ) | |
Barclays | USD | 4,016 | Three Month MIBOR | 1.586 | % | 04/07/19 | (2 | ) | |
Barclays | USD | 811 | Three Month MIBOR | 1.506 | % | 04/21/19 | 1 | ||
Barclays | USD | 3,052 | Three Month MIBOR | 1.568 | % | 04/26/19 | — | ||
Barclays | USD | 1,372 | Three Month MIBOR | 1.580 | % | 05/03/19 | — | ||
Barclays | USD | 2,050 | Three Month MIBOR | 1.578 | % | 05/03/19 | — | ||
Barclays | USD | 15,000 | Three Month MIBOR | 1.750 | % | 06/21/19 | (36 | ) | |
Barclays | USD | 2,284 | Three Month MIBOR | 2.054 | % | 03/28/22 | (14 | ) | |
Barclays | USD | 2,242 | Three Month MIBOR | 1.901 | % | 04/19/22 | — | ||
Barclays | USD | 853 | Three Month MIBOR | 1.835 | % | 04/20/22 | 5 | ||
Barclays | USD | 953 | Three Month MIBOR | 1.987 | % | 04/27/22 | (1 | ) | |
Barclays | USD | 1,563 | Three Month MIBOR | 1.978 | % | 04/27/22 | — | ||
Barclays | USD | 779 | Three Month MIBOR | 2.200 | % | 06/21/22 | (9 | ) | |
Barclays | USD | 353 | 2.464 | % | Three Month LIBOR | 03/22/27 | 7 | ||
Barclays | USD | 2,329 | 2.398 | % | Three Month LIBOR | 03/27/27 | 32 | ||
Barclays | USD | 538 | 2.392 | % | Three Month LIBOR | 03/28/27 | 7 | ||
Barclays | USD | 3,707 | 2.395 | % | Three Month LIBOR | 03/28/27 | 48 | ||
Barclays | USD | 310 | 2.348 | % | Three Month LIBOR | 03/29/27 | 3 | ||
Barclays | USD | 15,099 | Three Month MIBOR | 2.335 | % | 03/29/27 | (119 | ) | |
Barclays | USD | 3,812 | Three Month MIBOR | 2.338 | % | 03/30/27 | (31 | ) | |
Barclays | USD | 706 | 2.365 | % | Three Month LIBOR | 03/31/27 | 7 | ||
Barclays | USD | 939 | 2.366 | % | Three Month LIBOR | 03/31/27 | 10 | ||
Barclays | USD | 3,092 | 2.375 | % | Three Month LIBOR | 03/31/27 | 35 |
See accompanying notes which are an integral part of the financial statements.
678 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Interest Rate Swap Contracts | |||||||||
Amounts in thousands | |||||||||
Termination | Fair Value | ||||||||
Counterparty | Notional Amount | Fund Receives | Fund Pays | Date | $ | ||||
Barclays | USD | 867 | 2.362 | % | Three Month LIBOR | 04/03/27 | 9 | ||
Barclays | USD | 229 | Three Month MIBOR | 2.408 | % | 04/04/27 | (3 | ) | |
Barclays | USD | 1,335 | 2.337 | % | Three Month LIBOR | 04/05/27 | 11 | ||
Barclays | USD | 681 | 2.325 | % | Three Month LIBOR | 04/06/27 | 5 | ||
Barclays | USD | 1,416 | 2.336 | % | Three Month LIBOR | 04/06/27 | 11 | ||
Barclays | USD | 1,694 | 2.338 | % | Three Month LIBOR | 04/06/27 | 14 | ||
Barclays | USD | 12,977 | Three Month MIBOR | 2.320 | % | 04/06/27 | (83 | ) | |
Barclays | USD | 96 | 2.350 | % | Three Month LIBOR | 04/07/27 | 1 | ||
Barclays | USD | 657 | 2.326 | % | Three Month LIBOR | 04/07/27 | 5 | ||
Barclays | USD | 6,467 | Three Month MIBOR | 2.331 | % | 04/10/27 | (49 | ) | |
Barclays | USD | 993 | 2.300 | % | Three Month LIBOR | 04/11/27 | 5 | ||
Barclays | USD | 1,451 | Three Month MIBOR | 2.353 | % | 04/12/27 | (13 | ) | |
Barclays | USD | 2,014 | Three Month MIBOR | 2.332 | % | 04/12/27 | (15 | ) | |
Barclays | USD | 523 | 2.268 | % | Three Month LIBOR | 04/13/27 | 1 | ||
Barclays | USD | 482 | Three Month MIBOR | 2.259 | % | 04/18/27 | — | ||
Barclays | USD | 1,323 | 2.217 | % | Three Month LIBOR | 04/18/27 | (4 | ) | |
Barclays | USD | 1,725 | Three Month MIBOR | 2.267 | % | 04/18/27 | (3 | ) | |
Barclays | USD | 1,725 | 2.268 | % | Three Month LIBOR | 04/18/27 | 3 | ||
Barclays | USD | 2,587 | 2.249 | % | Three Month LIBOR | 04/18/27 | — | ||
Barclays | USD | 302 | 2.196 | % | Three Month LIBOR | 04/19/27 | (2 | ) | |
Barclays | USD | 645 | 2.214 | % | Three Month LIBOR | 04/19/27 | (4 | ) | |
Barclays | USD | 663 | Three Month MIBOR | 2.209 | % | 04/19/27 | — | ||
Barclays | USD | 1,348 | 2.199 | % | Three Month LIBOR | 04/19/27 | (10 | ) | |
Barclays | USD | 1,941 | Three Month MIBOR | 2.221 | % | 04/19/27 | — | ||
Barclays | USD | 2,516 | Three Month MIBOR | 2.193 | % | 04/19/27 | 19 | ||
Barclays | USD | 1,905 | Three Month MIBOR | 2.164 | % | 04/20/27 | — | ||
Barclays | USD | 619 | Three Month MIBOR | 2.162 | % | 04/21/27 | 5 | ||
Barclays | USD | 878 | 2.166 | % | Three Month LIBOR | 04/21/27 | (7 | ) | |
Barclays | USD | 940 | Three Month MIBOR | 2.182 | % | 04/21/27 | 6 | ||
Barclays | USD | 2,038 | 2.165 | % | Three Month LIBOR | 04/21/27 | (16 | ) | |
Barclays | USD | 285 | 2.198 | % | Three Month LIBOR | 04/24/27 | (1 | ) | |
Barclays | USD | 346 | 2.208 | % | Three Month LIBOR | 04/24/27 | (1 | ) | |
Barclays | USD | 380 | Three Month MIBOR | 2.183 | % | 04/24/27 | 2 | ||
Barclays | USD | 1,465 | Three Month MIBOR | 2.209 | % | 04/24/27 | 6 | ||
Barclays | USD | 444 | Three Month MIBOR | 2.203 | % | 04/25/27 | 2 | ||
Barclays | USD | 1,087 | 2.248 | % | Three Month LIBOR | 04/26/27 | — | ||
Barclays | USD | 348 | 2.292 | % | Three Month LIBOR | 04/27/27 | 1 | ||
Barclays | USD | 989 | 2.286 | % | Three Month LIBOR | 04/27/27 | 3 | ||
Barclays | USD | 1,281 | Three Month MIBOR | 2.276 | % | 04/27/27 | 1 | ||
Barclays | USD | 1,447 | Three Month MIBOR | 2.278 | % | 04/27/27 | (3 | ) | |
Barclays | USD | 2,906 | Three Month MIBOR | 2.310 | % | 04/28/27 | (15 | ) | |
Barclays | USD | 2,346 | 2.286 | % | Three Month LIBOR | 05/02/27 | 7 | ||
Barclays | USD | 1,946 | Three Month MIBOR | 2.261 | % | 05/03/27 | — | ||
Barclays | USD | 7,872 | 2.500 | % | Three Month LIBOR | 06/21/27 | 159 | ||
Barclays | USD | 280 | 2.714 | % | Three Month LIBOR | 03/22/47 | 12 | ||
Barclays | USD | 291 | 2.672 | % | Three Month LIBOR | 03/23/47 | 10 | ||
Barclays | USD | 446 | 2.616 | % | Three Month LIBOR | 04/07/47 | 10 | ||
Barclays | USD | 311 | 2.607 | % | Three Month LIBOR | 04/11/47 | 6 | ||
Barclays | USD | 328 | 2.536 | % | Three Month LIBOR | 04/13/47 | 1 | ||
Barclays | USD | 1,318 | 2.700 | % | Three Month LIBOR | 06/21/47 | 50 | ||
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $10 (å) | 60 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 679
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Credit Default Swap Contracts | |||||||||||
Amounts in thousands | |||||||||||
Corporate Issues | |||||||||||
Implied | Fund (Pays)/ | ||||||||||
Credit | Receives | Termination | Fair Value | ||||||||
Reference Entity | Counterparty | Spread | Notional Amount | Fixed Rate | Date | $ | |||||
AES Corporation | Goldman Sachs | 2.059 | % | USD | 350 | 5.000 | % | 06/20/22 | 50 | ||
Ally Financial Inc. | Goldman Sachs | 2.534 | % | USD | 100 | 5.000 | % | 06/20/22 | 12 | ||
Altice | Goldman Sachs | 2.739 | % | EUR | 500 | 5.000 | % | 06/20/22 | 54 | ||
ArcelorMittal | Goldman Sachs | 0.947 | % | EUR | 450 | 5.000 | % | 06/20/19 | 44 | ||
Avis | Goldman Sachs | 4.931 | % | USD | 100 | 5.000 | % | 06/20/22 | 3 | ||
Calpine | Goldman Sachs | 3.890 | % | USD | 300 | 5.000 | % | 06/20/22 | 21 | ||
Canadian Natural Resources | Goldman Sachs | 1.165 | % | USD | 500 | 1.000 | % | 06/20/22 | (5 | ) | |
Dell | Goldman Sachs | 2.364 | % | USD | 200 | 1.000 | % | 06/20/22 | (14 | ) | |
Enbridge, Inc. | Goldman Sachs | 1.017 | % | USD | 500 | 1.000 | % | 06/20/22 | (2 | ) | |
Fiat S.p.A. | Goldman Sachs | 1.133 | % | EUR | 350 | 5.000 | % | 06/20/19 | 32 | ||
Goodyear Tire & Rubber Co. | Goldman Sachs | 1.422 | % | USD | 300 | 5.000 | % | 06/20/22 | 51 | ||
JCPenny Co. | Goldman Sachs | 1.956 | % | EUR | 250 | 5.000 | % | 06/20/22 | 43 | ||
JCPenny Co. | Goldman Sachs | 8.012 | % | USD | 250 | 5.000 | % | 06/20/22 | (21 | ) | |
NRG Energy, Inc. | Goldman Sachs | 3.880 | % | USD | 270 | 5.000 | % | 06/20/22 | 20 | ||
Telecom Italia SPA | Goldman Sachs | 0.573 | % | EUR | 300 | 1.000 | % | 06/20/19 | 2 | ||
UPC Holding B.V. | Goldman Sachs | 1.934 | % | EUR | 200 | 5.000 | % | 06/20/22 | 32 | ||
Total Fair Value on Open Corporate Issues Premiums Paid (Received) - $305 | 322 | ||||||||||
Credit Indices | |||||||||||
Fund (Pays)/ | |||||||||||
Receives | Termination | Fair Value | |||||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | ||||||
CDX Emerging Markets Index | Bank of America | USD | 10,000 | 1.000 | % | 06/20/22 | (443 | ) | |||
CDX NA High Yield Index | Bank of America | USD | 14,500 | 5.000 | % | 06/20/22 | (1,065 | ) | |||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - ($1,448) | (1,508 | ) | |||||||||
Total Fair Value on Open Credit Default Swap Contracts Premiums Paid (Received) - ($1,143) (å) | (1,186 | ) |
Consolidated Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Long-Term Investments | |||||||||||||||||
Asset-Backed Securities | $ | — | $ | 238 | $ | — | $ | — | $ | 238 | —* | ||||||
Corporate Bonds and Notes | — | 27,828 | — | — | 27,828 | 5.5 | |||||||||||
International Debt | — | 25,490 | — | — | 25,490 | 5.0 | |||||||||||
Loan Agreements | — | 53,627 | — | — | 53,627 | 10.5 | |||||||||||
Mortgage-Backed Securities | — | 55,515 | 481 | — | 55,996 | 11.0 | |||||||||||
Non-US Bonds | — | 46,889 | — | — | 46,889 | 9.2 | |||||||||||
United States Government Treasuries | — | 553 | — | — | 553 | 0.1 | |||||||||||
Common Stocks | |||||||||||||||||
Consumer Discretionary | 19,426 | 9,176 | — | — | 28,602 | 5.6 | |||||||||||
Consumer Staples | 5,340 | 3,768 | — | — | 9,108 | 1.8 | |||||||||||
Energy | 7,195 | 2,673 | — | — | 9,868 | 1.9 | |||||||||||
Financial Services | 38,260 | 20,843 | — | — | 59,103 | 11.6 |
See accompanying notes which are an integral part of the financial statements.
680 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Consolidated Presentation of Portfolio Holdings | |||||||||||||||||||
Amounts in thousands | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Practical | |||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||||
Health Care | 10,272 | 4,501 | — | — | 14,773 | 2.9 | |||||||||||||
Materials and Processing | 5,949 | 6,365 | — | — | 12,314 | 2.4 | |||||||||||||
Producer Durables | 9,488 | 15,983 | — | — | 25,471 | 5.0 | |||||||||||||
Technology | 21,336 | 9,009 | — | — | 30,345 | 6.0 | |||||||||||||
Utilities | 15,173 | 8,063 | — | — | 23,236 | 4.6 | |||||||||||||
Preferred Stocks | 876 | 294 | — | — | 1,170 | 0.2 | |||||||||||||
Options Purchased | — | 417 | — | — | 417 | 0.1 | |||||||||||||
Short-Term Investments | — | 9,442 | — | 86,849 | 96,291 | 18.9 | |||||||||||||
Total Investments | 133,315 | 300,674 | 481 | 86,849 | 521,319 | 102.3 | |||||||||||||
Other Assets and Liabilities, Net | (2.3 | ) | |||||||||||||||||
100.0 | |||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||
Assets | |||||||||||||||||||
Futures Contracts | 2,785 | — | — | — | 2,785 | 0.5 | |||||||||||||
Foreign Currency Exchange Contracts | 1 | 1,070 | — | — | 1,071 | 0.2 | |||||||||||||
Interest Rate Swap Contracts | — | 520 | — | — | 520 | 0.1 | |||||||||||||
Credit Default Swap Contracts | — | 364 | — | — | 364 | 0.1 | |||||||||||||
A | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Futures Contracts | (1,479 | ) | — | — | — | (1,479 | ) | (0.3 | ) | ||||||||||
Options Written | — | (188 | ) | — | — | (188 | ) | (—)* | |||||||||||
Foreign Currency Exchange Contracts | (1 | ) | (2,026 | ) | — | — | (2,027 | ) | (0.4 | ) | |||||||||
Interest Rate Swap Contracts | — | (460 | ) | — | — | (460 | ) | (0.1 | ) | ||||||||||
Credit Default Swap Contracts | — | (1,550 | ) | — | — | (1,550 | ) | (0.3 | ) | ||||||||||
Total Other Financial Instruments** | $ | 1,306 | $ | (2,270 | ) | $ | — | $ | — | $ | (964 | ) |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 681
Russell Investment Company
Multi-Asset Growth Strategy Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||||||
Equity | Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | |||||||
Location: Statement of Assets and Liabilities - Assets | |||||||||||
Investments, at fair value* | $ | — | $ | — | $ | — | $ | 417 | |||
Unrealized appreciation on foreign currency exchange contracts | — | — | 1,071 | — | |||||||
Variation margin on futures contracts** | 898 | — | — | 1,887 | |||||||
Interest rate swap contracts, at fair value | — | — | — | 520 | |||||||
Credit default swap contracts, at fair value | — | 364 | — | — | |||||||
Total | $ | 898 | $ | 364 | $ | 1,071 | $ | 2,824 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||||||
Variation margin on futures contracts** | $ | 726 | $ | — | $ | — | $ | 753 | |||
Unrealized depreciation on foreign currency exchange contracts | — | — | 2,027 | — | |||||||
Options written, at fair value | — | — | — | 188 | |||||||
Interest rate swap contracts, at fair value | — | — | — | 460 | |||||||
Credit default swap contracts, at fair value | — | 1,550 | — | — | |||||||
Total | $ | 726 | $ | 1,550 | $ | 2,027 | $ | 1,401 | |||
Foreign | |||||||||||
Equity | Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | |||||||
Location: Statement of Operations - Net realized gain (loss) | |||||||||||
Investments*** | $ | — | $ | — | $ | — | $ | (203 | ) | ||
Futures contracts | 1,483 | — | — | 39 | |||||||
Options written | — | — | — | 94 | |||||||
Interest rate swap contracts | — | — | — | 41 | |||||||
Credit default swap contracts | — | 39 | — | — | |||||||
Foreign currency-related transactions**** | — | — | (705 | ) | — | ||||||
Total | $ | 1,483 | $ | 39 | $ | (705 | ) | $ | (29 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation | |||||||||||
(depreciation) | |||||||||||
Investments***** | $ | — | $ | — | $ | — | $ | 114 | |||
Futures contracts | 172 | — | — | 1,134 | |||||||
Options written | — | — | — | 115 | |||||||
Interest rate swap contracts | — | — | — | 50 | |||||||
Credit default swap contracts | — | (43 | ) | — | — | ||||||
Foreign currency-related transactions****** | — | — | (956 | ) | — | ||||||
Total | $ | 172 | $ | (43 | ) | $ | (956 | ) | $ | 1,413 |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
682 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Balance Sheet Offsetting Financial and Derivative Instruments —
April 30, 2017
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 417 | $ | — $ | 417 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 1,071 | — | 1,071 | |||||
Futures Contracts | Variation margin on futures contracts | 273 | — | 273 | |||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 520 | — | 520 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 364 | — | 364 | |||||
Total Financial and Derivative Assets | 2,645 | — | 2,645 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (1,158 | ) | — | (1,158 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 1,487 | $ | — $ | 1,487 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of America | $ | 93 | $ | 93 | $ | — | — | ||
Bank of Montreal | 40 | 40 | — | — | |||||
Bank of New York | 156 | 124 | — | 32 | |||||
Citigroup | 36 | 25 | — | 11 | |||||
HSBC | 40 | 24 | — | 16 | |||||
JPMorgan Chase | 458 | 205 | — | 253 | |||||
Royal Bank of Canada | 177 | 86 | — | 91 | |||||
State Street | 465 | 219 | — | 246 | |||||
UBS | 22 | 7 | — | 15 | |||||
Total | $ | 1,487 | $ | 823 | $ | — | 664 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 683
Russell Investment Company
Multi-Asset Growth Strategy Fund
Balance Sheet Offsetting Financial and Derivative Instruments, continued —
April 30, 2017
Amounts in thousands | |||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||
Gross | Net Amounts | ||||||||||||
Amounts | of Liabilities | ||||||||||||
Gross | Offset in the | Presented in | |||||||||||
Amounts of | Statement of | the Statement | |||||||||||
Recognized | Assets and | of Assets and | |||||||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||||||
Futures Contracts | Variation margin on futures contracts | $ | 207 | $ | — $ | 208 | |||||||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 2,027 | — | 2,027 | |||||||||
Options Written Contracts | Options written, at fair value | 188 | — | 188 | |||||||||
Interest Rate Swap Contracts | Interest rate swap contracts, at fair value | 460 | — | 461 | |||||||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 1,550 | — | 1,550 | |||||||||
Total Financial and Derivative Liabilities | 4,432 | — | 4,432 | ||||||||||
Financial and Derivative Liabilities not subject to a netting agreement | (2,539 | ) | — | (2,539 | ) | ||||||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 1,893 | $ | — $ | 1,893 | ||||||||
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||||||
Gross Amounts Not Offset in | |||||||||||||
the Statement of Assets and | |||||||||||||
Liabilities | |||||||||||||
Net Amounts | |||||||||||||
of Liabilities | |||||||||||||
Presented in | |||||||||||||
the Statement | Financial and | ||||||||||||
of Assets and | Derivative | Collateral | |||||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||||||
Bank of America | $ | 415 | $ | 93 | $ | — | $ 322 | ||||||
Bank of Montreal | 209 | 40 | — | 169 | |||||||||
Bank of New York | 124 | 124 | — | — | |||||||||
Citigroup | 26 | 25 | — | 1 | |||||||||
HSBC | 25 | 24 | — | 1 | |||||||||
JPMorgan Chase | 205 | 205 | — | — | |||||||||
Royal Bank of Canada | 347 | 86 | — | 261 | |||||||||
State Street | 535 | 219 | — | 316 | |||||||||
UBS | 7 | 7 | — | — | |||||||||
Total | $ | 1,893 | $ | 823 | $ | — | $ 1,070 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
684 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 513,839 |
Investments, at fair value(>) | 521,319 | |
Cash (restricted)(a)(b) | 10,040 | |
Foreign currency holdings(^) | 2,261 | |
Unrealized appreciation on foreign currency exchange contracts | 1,071 | |
Receivables: | ||
Dividends and interest | 2,801 | |
Dividends from affiliated funds | 87 | |
Investments sold | 75,507 | |
Fund shares sold | 3,494 | |
Variation margin on futures contracts | 273 | |
Prepaid expenses | 83 | |
Interest rate swap contracts, at fair value(•) | 520 | |
Credit default swap contracts, at fair value(+) | 364 | |
Total assets | 617,820 | |
Liabilities | ||
Payables: | ||
Due to custodian | 209 | |
Due to broker (c)(d) | 147 | |
Investments purchased | 102,354 | |
Fund shares redeemed | 251 | |
Accrued fees to affiliates | 370 | |
Other accrued expenses | 96 | |
Variation margin on futures contracts | 207 | |
Deferred capital gains tax liability | 18 | |
Unfunded loan commitment | 245 | |
Unrealized depreciation on foreign currency exchange contracts | 2,027 | |
Options written, at fair value(x) | 188 | |
Interest rate swap contracts, at fair value(•) | 460 | |
Credit default swap contracts, at fair value(+) | 1,550 | |
Total liabilities | 108,122 | |
Commitments and Contingencies (1) | ||
Net Assets | $ | 509,698 |
(1) See note 9 in the Notes to Financial Statements for a detailed description of commitments and contingencies. |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 685
Russell Investment Company
Multi-Asset Growth Strategy Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 410 | |
Accumulated net realized gain (loss) | 817 | ||
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 7,462 | ||
Futures contracts | 1,306 | ||
Options written | 115 | ||
Interest rate swap contracts | 50 | ||
Credit default swap contracts | (43 | ) | |
Foreign currency-related transactions | (941 | ) | |
Shares of beneficial interest | 500 | ||
Additional paid-in capital | 500,022 | ||
Net Assets | $ | 509,698 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class S(#) | $ | 10.20 | |
Class S — Net assets | $ | 506,849,051 | |
Class S — Shares outstanding ($.01 par value) | 49,689,567 | ||
Net asset value per share: Class T(#) | $ | 10.20 | |
Class T — Net assets | $ | 2,849,153 | |
Class T — Shares outstanding ($.01 par value) | 279,272 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 2,256 | |
(x) Premiums received on options written | $ | 303 | |
(+) Credit default swap contracts - premiums paid (received) | $ | (1,143 | ) |
(•) Interest rate swap contracts - premiums paid (received) | $ | 10 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 86,849 | |
(a) Cash Collateral for Futures | $ | 6,215 | |
(b) Cash Collateral for Swaps | $ | 3,825 | |
(c) Due to Broker for Futures | $ | 31 | |
(d) Due to Broker for Swaps | $ | 116 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
686 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017(1) (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 593 | |
Dividends from affiliated funds | 220 | ||
Interest | 415 | ||
Total investment income | 1,228 | ||
Expenses | |||
Advisory fees | 575 | ||
Administrative fees | 33 | ||
Custodian fees | 64 | ||
Transfer agent fees - Class S | 135 | ||
Transfer agent fees - Class T | —** | ||
Professional fees | 22 | ||
Registration fees | 7 | ||
Trustees’ fees | 2 | ||
Printing fees | 7 | ||
Offering fees | 17 | ||
Miscellaneous | 2 | ||
Expenses before reductions | 864 | ||
Expense reductions | (134 | ) | |
Net expenses | 730 | ||
Net investment income (loss) | 498 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 44 | ||
Futures contracts | 1,522 | ||
Options written | 94 | ||
Interest rate swap contracts | 41 | ||
Credit default swap contracts | 39 | ||
Foreign currency-related transactions | (923 | ) | |
Net realized gain (loss) | 817 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 7,462 | ||
Futures contracts | 1,306 | ||
Options written | 115 | ||
Interest rate swap contracts | 50 | ||
Credit default swap contracts | (43 | ) | |
Foreign currency-related transactions | (941 | ) | |
Net change in unrealized appreciation (depreciation) | 7,949 | ||
Net realized and unrealized gain (loss) | 8,766 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 9,264 | |
** Less than $500. | |||
(1) For the period March 7, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 687
Russell Investment Company
Multi-Asset Growth Strategy Fund
Statements of Changes in Net Assets
Period | |||
Ended April 30, 2017 (1) | |||
Amounts in thousands | (Unaudited) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $ | 498 | |
Net realized gain (loss) | 817 | ||
Net change in unrealized appreciation (depreciation) | 7,949 | ||
Net increase (decrease) in net assets from operations | 9,264 | ||
Distributions | |||
From net investment income | |||
Class S | (88 | ) | |
Class T | (—)** | ||
Net decrease in net assets from distributions | (88 | ) | |
Share Transactions* | |||
Net increase (decrease) in net assets from share transactions | 500,522 | ||
Total Net Increase (Decrease) in Net Assets | 509,698 | ||
Net Assets | |||
Beginning of period | — | ||
End of period | $ | 509,698 | |
Undistributed (overdistributed) net investment income included in net assets | $ | 410 | |
** Less than $500. | |||
(1) For the period March 7, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
688 Multi-Asset Growth Strategy Fund
Russell Investment Company
Multi-Asset Growth Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the period ended April 30, 2017 were as follows: | ||||||
2017 (Unaudited) | ||||||
Shares | Dollars | |||||
Class S(1) | ||||||
Proceeds from shares sold | 51,055 | $ | 511,479 | |||
Proceeds from reinvestment of distributions | 9 | 88 | ||||
Payments for shares redeemed | (1,374 | ) | (13,863 | ) | ||
Net increase (decrease) | 49,690 | 497,704 | ||||
Class T(2) | ||||||
Proceeds from shares sold | 279 | 2,819 | ||||
Proceeds from reinvestment of distributions | —** | —*** | ||||
Payments for shares redeemed | (—)** | (1 | ) | |||
Net increase (decrease) | 279 | 2,818 | ||||
Total increase (decrease) | 49,969 | $ | 500,522 | |||
** Less than 500 shares. | ||||||
*** Less than $500. | ||||||
(1) For the period March 7, 2017 (commencement of operations) to April 30, 2017. | ||||||
(2) For the period March 17, 2017 (commencement of operations) to April 30, 2017. |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 689
Russell Investment Company
Multi-Asset Growth Strategy Fund
Financial Highlights — For the Period Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | ||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | ||||||
Beginning of | Investment | and Unrealized | Investment | from Net | $ | |||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Total Distributions | |||||
Class S | ||||||||||
April 30, 2017(11) | 10.00 | .01 | .19 | .20 | — | — | ||||
Class T | ||||||||||
April 30, 2017(10) | 10.08 | .01 | .11 | .12 | — | — | ||||
See accompanying notes which are an integral part of the financial statements.
690 Multi-Asset Growth Strategy Fund
% | % | % | |||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||
End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||
Period | Return(b) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | ||||||
10.20 | 2.02 | 506,849 | 1.28 | 1.08 | .74 | 11 | |||||||
10.20 | 1.21 | 2,849 | 1.29 | .98 | .88 | 11 |
See accompanying notes which are an integral part of the financial statements.
Multi-Asset Growth Strategy Fund 691
Russell Investment Company
Multi-Asset Growth Strategy Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 266,679 |
Administration fees | 19,713 | |
Transfer agent fees | 81,572 | |
Trustee fees | 2,030 | |
$ | 369,994 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Management Fund | $ | — | $ 876,248 | $ | 789,401 | $ | — | $ 2 | $ | 86,849 | $ | 220 | $ | — | |||
$ | — | $ 876,248 | $ | 789,401 | $ | — | $ 2 | $ | 86,849 | $ | 220 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 513,847,685 | |||
Unrealized Appreciation | $ | 11,010,161 | |||
Unrealized Depreciation | (3,539,095 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 7,471,066 |
See accompanying notes which are an integral part of the financial statements.
692 Multi-Asset Growth Strategy Fund
Russell Investment Company
Strategic Call Overwriting Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, and (2) ongoing costs, including advisory and | would have been higher. | |||||
administrative fees and other Fund expenses. The Example is | Hypothetical | |||||
intended to help you understand your ongoing costs (in dollars) | Performance (5% | |||||
of investing in the Fund and to compare these costs with the | Actual | return before | ||||
ongoing costs of investing in other mutual funds. The Example | Class S | Performance | expenses) | |||
Beginning Account Value | ||||||
is based on an investment of $1,000 invested at the beginning of | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
the period and held for the entire period indicated, which for this | Ending Account Value | |||||
Fund is from November 1, 2016 to April 30, 2017. | April 30, 2017 | $ | 1,090.70 | $ | 1,019.98 | |
Expenses Paid During Period* | $ | 5.03 | $ | 4.86 | ||
Actual Expenses | ||||||
The information in the table under the heading “Actual | * Expenses are equal to the Fund's annualized expense ratio of 0.97% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance” provides information about actual account values | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
and actual expenses. You may use the information in this column, | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
together with the amount you invested, to estimate the expenses | waivers and/or reimbursements, expenses would have been higher. | |||||
that you paid over the period. Simply divide your account value by | ||||||
$1,000 (for example, an $8,600 account value divided by $1,000 | ||||||
= 8.6), then multiply the result by the number in the first column | ||||||
in the row entitled “Expenses Paid During Period” to estimate | ||||||
the expenses you paid on your account during this period. | ||||||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | ||||||
Performance (5% return before expenses)” provides information | ||||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | ||||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
actual return. The hypothetical account values and expenses | ||||||
may not be used to estimate the actual ending account balance or | ||||||
expenses you paid for the period. You may use this information | ||||||
to compare the ongoing costs of investing in the Fund and other | ||||||
funds. To do so, compare this 5% hypothetical example with the | ||||||
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. |
Strategic Call Overwriting Fund 693
Russell Investment Company
Strategic Call Overwriting Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 94.3% | Twenty-First Century Fox, Inc. Class A | 10,120 | 309 | ||||
Consumer Discretionary - 13.7% | Urban Outfitters, Inc.(Æ) | 2,305 | 53 | ||||
Advance Auto Parts, Inc. | 343 | 49 | Vista Outdoor, Inc.(Æ) | 4,298 | 84 | ||
Amazon.com, Inc.(Æ) | 1,715 | 1,586 | Wal-Mart Stores, Inc. | 8,670 | 652 | ||
AMC Networks, Inc. Class A(Æ) | 208 | 12 | Walt Disney Co. (The) | 7,763 | 897 | ||
AutoNation, Inc.(Æ) | 793 | 33 | Whirlpool Corp. | 556 | 103 | ||
Best Buy Co., Inc. | 2,196 | 114 | Williams-Sonoma, Inc. | 266 | 14 | ||
CarMax, Inc.(Æ) | 2,143 | 125 | Wyndham Worldwide Corp. | 1,531 | 146 | ||
Comcast Corp. Class A | 27,732 | 1,087 | Wynn Resorts, Ltd. | 346 | 43 | ||
Costco Wholesale Corp. | 2,784 | 494 | |||||
Dick's Sporting Goods, Inc. | 336 | 17 | 12,926 | ||||
Dillard's, Inc. Class A | 3,098 | 171 | |||||
Dollar General Corp. | 2,083 | 151 | Consumer Staples - 6.9% | ||||
Altria Group, Inc. | 13,411 | 963 | |||||
DR Horton, Inc. | 2,712 | 89 | Bunge, Ltd. | 647 | 51 | ||
eBay, Inc.(Æ) | 5,552 | 185 | Campbell Soup Co. | 2,795 | 161 | ||
Expedia, Inc. | 525 | 70 | Coca-Cola Co. (The) | 16,883 | 728 | ||
Fitbit, Inc. Class A(Æ) | 11,794 | 67 | Colgate-Palmolive Co. | 3,866 | 278 | ||
Ford Motor Co. | 21,357 | 245 | Constellation Brands, Inc. Class A | 748 | 129 | ||
Fortune Brands Home & Security, Inc. | 621 | 40 | CVS Health Corp. | 6,712 | 553 | ||
GameStop Corp. Class A | 6,563 | 149 | Herbalife, Ltd.(Æ) | 359 | 23 | ||
Gap, Inc. (The) | 3,571 | 94 | Hormel Foods Corp. | 4,652 | 163 | ||
Gentex Corp. | 3,254 | 67 | Kimberly-Clark Corp. | 2,584 | 335 | ||
Goodyear Tire & Rubber Co. (The) | 2,724 | 99 | Kraft Heinz Co. (The) | 3,305 | 299 | ||
Graham Holdings Co. Class B | 55 | 33 | Molson Coors Brewing Co. Class B | 1,487 | 143 | ||
H&R Block, Inc. | 2,631 | 65 | Mondelez International, Inc. Class A | 9,898 | 446 | ||
Harley-Davidson, Inc. | 968 | 55 | Nu Skin Enterprises, Inc. Class A | 284 | 16 | ||
Hasbro, Inc. | 1,340 | 133 | PepsiCo, Inc. | 8,615 | 976 | ||
Home Depot, Inc. (The) | 8,279 | 1,292 | Procter & Gamble Co. (The) | 11,638 | 1,016 | ||
Interpublic Group of Cos., Inc. (The) | 1,780 | 42 | Safeway, Inc.(Æ) | 4,648 | 2 | ||
Kohl's Corp. | 1,853 | 72 | Sprouts Farmers Market, Inc.(Æ) | 2,538 | 57 | ||
Lear Corp. | 1,030 | 147 | Tyson Foods, Inc. Class A | 2,568 | 165 | ||
Leggett & Platt, Inc. | 680 | 36 | |||||
Lennar Corp. Class A | 954 | 48 | 6,504 | ||||
Liberty Interactive Corp. Class A(Æ) | 1,594 | 34 | |||||
Macy's, Inc. | 1,319 | 39 | Energy - 5.3% | ||||
Madison Square Garden Co. (The) Class A(Æ) | 107 | 22 | Anadarko Petroleum Corp. | 3,294 | 188 | ||
McDonald's Corp. | 5,682 | 795 | Apache Corp. | 2,959 | 144 | ||
Michael Kors Holdings, Ltd.(Æ) | 852 | 32 | Chesapeake Energy Corp.(Æ) | 4,080 | 21 | ||
Murphy USA, Inc.(Æ) | 1,379 | 96 | Chevron Corp. | 9,365 | 999 | ||
Netflix, Inc.(Æ) | 1,867 | 284 | ConocoPhillips | 8,741 | 419 | ||
Newell Rubbermaid, Inc. | 1,942 | 93 | EQT Corp. | 2,257 | 131 | ||
News Corp. Class A | 2,507 | 32 | Exxon Mobil Corp. | 19,040 | 1,554 | ||
Nike, Inc. Class B | 8,514 | 472 | First Solar, Inc.(Æ) | 501 | 15 | ||
Penske Automotive Group, Inc. | 414 | 20 | Halliburton Co. | 4,069 | 187 | ||
PulteGroup, Inc. | 2,943 | 67 | Helmerich & Payne, Inc. | 1,227 | 74 | ||
PVH Corp. | 797 | 80 | HollyFrontier Corp. | 948 | 27 | ||
Sally Beauty Holdings, Inc.(Æ) | 936 | 18 | Noble Corp. PLC | 1,228 | 6 | ||
Scripps Networks Interactive, Inc. Class A | 597 | 45 | Occidental Petroleum Corp. | 4,488 | 276 | ||
Signet Jewelers, Ltd. | 633 | 42 | Rowan Cos. PLC Class A(Æ) | 5,590 | 79 | ||
Skechers U.S.A., Inc. Class A(Æ) | 972 | 25 | Schlumberger, Ltd. | 6,051 | 439 | ||
Staples, Inc. | 2,745 | 27 | SM Energy Co. | 785 | 18 | ||
Starbucks Corp. | 7,452 | 448 | Southwestern Energy Co.(Æ) | 2,804 | 21 | ||
TEGNA, Inc. | 1,865 | 47 | Tesoro Corp. | 1,113 | 89 | ||
Thor Industries, Inc. | 389 | 37 | Transocean, Ltd.(Æ) | 5,725 | 63 | ||
Tiffany & Co. | 1,156 | 106 | Valero Energy Corp. | 1,969 | 127 | ||
Time Warner, Inc. | 4,934 | 490 | Williams Cos., Inc. (The) | 3,549 | 109 | ||
TJX Cos., Inc. | 4,732 | 372 | 4,986 | ||||
TripAdvisor, Inc.(Æ) | 769 | 35 |
See accompanying notes which are an integral part of the financial statements.
694 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Financial Services - 19.2% | Realty Income Corp.(ö) | 1,064 | 62 | ||||
Affiliated Managers Group, Inc. | 867 | 144 | RenaissanceRe Holdings, Ltd. | 1,137 | 162 | ||
Alliance Data Systems Corp. | 375 | 94 | Santander Consumer USA Holdings, Inc.(Æ) | 6,113 | 78 | ||
Ally Financial, Inc. | 1,926 | 38 | SBA Communications Corp.(Æ)(ö) | 1,097 | 139 | ||
American Express Co. | 6,880 | 545 | SEI Investments Co. | 2,715 | 138 | ||
American International Group, Inc. | 8,619 | 525 | Simon Property Group, Inc.(ö) | 2,224 | 368 | ||
American National Insurance Co. | 2,617 | 306 | SL Green Realty Corp.(ö) | 803 | 84 | ||
American Tower Corp.(ö) | 1,802 | 227 | TD Ameritrade Holding Corp. | 4,432 | 170 | ||
Apartment Investment & Management Co. | Torchmark Corp. | 2,397 | 184 | ||||
Class A(ö) | 2,311 | 101 | Total System Services, Inc. | 2,598 | 149 | ||
Artisan Partners Asset Management, Inc. | Two Harbors Investment Corp.(ö) | 7,585 | 76 | ||||
Class A | 1,434 | 42 | Unum Group | 5,074 | 235 | ||
Assurant, Inc. | 1,255 | 121 | US Bancorp | 9,816 | 503 | ||
Assured Guaranty, Ltd. | 8,285 | 316 | Visa, Inc. Class A | 8,122 | 741 | ||
Bank of America Corp. | 47,474 | 1,108 | Weingarten Realty Investors(ö) | 1,406 | 46 | ||
Berkshire Hathaway, Inc. Class B(Æ) | 8,259 | 1,364 | Wells Fargo & Co. | 25,452 | 1,370 | ||
CBOE Holdings, Inc. | 703 | 58 | Weyerhaeuser Co.(ö) | 3,853 | 130 | ||
CBRE Group, Inc. Class A(Æ) | 2,909 | 104 | White Mountains Insurance Group, Ltd. | 79 | 68 | ||
Chimera Investment Corp.(ö) | 445 | 9 | WR Berkley Corp. | 1,829 | 124 | ||
Cincinnati Financial Corp. | 3,142 | 227 | XL Group, Ltd. | 3,586 | 150 | ||
Citigroup, Inc. | 12,560 | 743 | Zions Bancorporation | 4,152 | 166 | ||
Comerica, Inc. | 912 | 64 | 18,019 | ||||
CoreCivic, Inc.(Æ) | 2,201 | 76 | |||||
Credit Acceptance Corp.(Æ) | 340 | 69 | Health Care - 11.8% | ||||
Crown Castle International Corp.(ö) | 1,569 | 148 | Abbott Laboratories | 7,702 | 336 | ||
DDR Corp.(ö) | 3,346 | 36 | AbbVie, Inc. | 7,068 | 466 | ||
Duke Realty Corp.(ö) | 4,212 | 117 | Acadia Healthcare Co., Inc.(Æ) | 954 | 42 | ||
E*Trade Financial Corp.(Æ) | 4,055 | 140 | Aetna, Inc. | 2,474 | 334 | ||
Eaton Vance Corp. | 3,867 | 166 | Allscripts Healthcare Solutions, Inc.(Æ) | 7,529 | 90 | ||
Equifax, Inc. | 652 | 88 | Amgen, Inc. | 3,207 | 524 | ||
Federal Realty Investment Trust(ö) | 676 | 88 | Baxter International, Inc. | 3,771 | 210 | ||
Federated Investors, Inc. Class B | 2,001 | 54 | Biogen, Inc.(Æ) | 946 | 257 | ||
Fidelity National Information Services, Inc. | 1,695 | 143 | Bioverativ, Inc.(Æ) | 616 | 36 | ||
First Hawaiian, Inc. | 4,166 | 124 | Bristol-Myers Squibb Co. | 8,156 | 457 | ||
FNF Group | 4,299 | 176 | Bruker Corp. | 746 | 18 | ||
Goldman Sachs Group, Inc. (The) | 2,470 | 553 | Centene Corp.(Æ) | 723 | 54 | ||
Huntington Bancshares, Inc. | 11,657 | 150 | Cigna Corp. | 1,117 | 175 | ||
Intercontinental Exchange, Inc. | 2,570 | 155 | Dentsply Sirona, Inc. | 2,613 | 165 | ||
JPMorgan Chase & Co. | 17,526 | 1,525 | DexCom, Inc.(Æ) | 534 | 42 | ||
Kilroy Realty Corp.(ö) | 1,430 | 101 | Eli Lilly & Co. | 5,710 | 469 | ||
Lamar Advertising Co. Class A(ö) | 451 | 32 | Envision Healthcare Corp.(Æ) | 350 | 20 | ||
Legg Mason, Inc. | 2,165 | 81 | Express Scripts Holding Co.(Æ) | 4,536 | 278 | ||
Leucadia National Corp. | 2,584 | 66 | Gilead Sciences, Inc. | 5,828 | 400 | ||
Lincoln National Corp. | 2,048 | 135 | HCA Holdings, Inc.(Æ) | 1,896 | 160 | ||
Macerich Co. (The)(ö) | 665 | 42 | Henry Schein, Inc.(Æ) | 1,290 | 224 | ||
MarketAxess Holdings, Inc. | 102 | 20 | Hill-Rom Holdings, Inc. | 428 | 32 | ||
MasterCard, Inc. Class A | 6,458 | 751 | Humana, Inc. | 649 | 144 | ||
MetLife, Inc. | 6,203 | 321 | IDEXX Laboratories, Inc.(Æ) | 1,224 | 205 | ||
Morningstar, Inc. | 801 | 59 | Johnson & Johnson | 11,833 | 1,461 | ||
Nasdaq, Inc. | 2,333 | 161 | LifePoint Health, Inc.(Æ) | 2,436 | 151 | ||
Navient Corp. | 7,908 | 120 | Mallinckrodt PLC(Æ) | 560 | 26 | ||
Old Republic International Corp. | 1,160 | 24 | MEDNAX, Inc.(Æ) | 494 | 30 | ||
OneMain Holdings, Inc.(Æ) | 486 | 11 | Medtronic PLC | 7,884 | 655 | ||
PayPal Holdings, Inc.(Æ) | 5,552 | 265 | Merck & Co., Inc. | 13,645 | 850 | ||
People's United Financial, Inc. | 6,598 | 115 | Patterson Cos., Inc. | 1,312 | 58 | ||
Popular, Inc. | 7,334 | 307 | PerkinElmer, Inc. | 2,078 | 123 | ||
Public Storage(ö) | 857 | 179 | Pfizer, Inc. | 26,393 | 895 | ||
Raymond James Financial, Inc. | 1,908 | 142 |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 695
Russell Investment Company
Strategic Call Overwriting Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Premier, Inc. Class A(Æ) | 1,649 | 56 | Flowserve Corp. | 2,221 | 113 | ||
Regeneron Pharmaceuticals, Inc.(Æ) | 412 | 160 | General Electric Co. | 38,476 | 1,115 | ||
ResMed, Inc. | 905 | 62 | Honeywell International, Inc. | 3,831 | 502 | ||
United Therapeutics Corp.(Æ) | 369 | 46 | IDEX Corp. | 1,808 | 189 | ||
UnitedHealth Group, Inc. | 6,346 | 1,110 | Jacobs Engineering Group, Inc. | 2,018 | 111 | ||
Universal Health Services, Inc. Class B | 390 | 47 | JetBlue Airways Corp.(Æ) | 2,678 | 58 | ||
Varex Imaging Corp.(Æ) | 514 | 17 | KBR, Inc. | 10,626 | 149 | ||
Varian Medical Systems, Inc.(Æ) | 1,286 | 117 | Kirby Corp.(Æ) | 352 | 25 | ||
WellCare Health Plans, Inc.(Æ) | 586 | 90 | L3 Technologies, Inc. | 1,344 | 231 | ||
11,092 | LSC Communications, Inc. | 4,111 | 106 | ||||
Mettler-Toledo International, Inc.(Æ) | 372 | 191 | |||||
Materials and Processing - 3.5% | Orbital ATK, Inc. | 737 | 73 | ||||
Albemarle Corp. | 1,165 | 127 | Oshkosh Corp. | 1,097 | 76 | ||
Ball Corp. | 1,447 | 111 | Pitney Bowes, Inc. | 2,023 | 27 | ||
Bemis Co., Inc. | 1,486 | 67 | Quanta Services, Inc.(Æ) | 3,211 | 114 | ||
Cabot Corp. | 555 | 33 | Robert Half International, Inc. | 1,651 | 76 | ||
Domtar Corp. | 3,921 | 156 | Rockwell Collins, Inc. | 1,531 | 159 | ||
Dow Chemical Co. (The) | 6,661 | 418 | Ryder System, Inc. | 494 | 34 | ||
EI du Pont de Nemours & Co. | 5,336 | 426 | Snap-on, Inc. | 769 | 129 | ||
FMC Corp. | 1,114 | 82 | Southwest Airlines Co. | 2,791 | 157 | ||
Freeport-McMoRan, Inc.(Æ) | 6,395 | 82 | Spirit Airlines, Inc.(Æ) | 2,505 | 143 | ||
Huntsman Corp. | 1,323 | 33 | Square, Inc. Class A(Æ) | 1,552 | 28 | ||
International Flavors & Fragrances, Inc. | 520 | 72 | Stericycle, Inc.(Æ) | 773 | 66 | ||
Masco Corp. | 3,011 | 111 | Terex Corp. | 1,361 | 48 | ||
Monsanto Co. | 3,444 | 402 | Textron, Inc. | 2,068 | 97 | ||
Newmont Mining Corp. | 2,293 | 78 | TransDigm Group, Inc. | 332 | 82 | ||
Owens Corning | 3,565 | 217 | Trimble Navigation, Ltd.(Æ) | 1,732 | 61 | ||
Owens-Illinois, Inc.(Æ) | 1,379 | 30 | Trinity Industries, Inc. | 6,581 | 177 | ||
Packaging Corp. of America | 995 | 98 | Union Pacific Corp. | 6,272 | 702 | ||
Platform Specialty Products Corp.(Æ) | 1,793 | 25 | United Continental Holdings, Inc.(Æ) | 1,529 | 107 | ||
Praxair, Inc. | 1,988 | 248 | United Parcel Service, Inc. Class B | 5,059 | 544 | ||
Reliance Steel & Aluminum Co. | 589 | 46 | United Technologies Corp. | 5,341 | 636 | ||
Royal Gold, Inc. | 1,227 | 87 | Waters Corp.(Æ) | 1,344 | 228 | ||
Sealed Air Corp. | 2,145 | 94 | WESCO International, Inc.(Æ) | 1,491 | 91 | ||
USG Corp.(Æ) | 1,916 | 58 | Xylem, Inc. | 2,411 | 124 | ||
Vulcan Materials Co. | 817 | 99 | 10,415 | ||||
WestRock Co. | 1,507 | 81 | |||||
3,281 | Technology - 18.1% | ||||||
Akamai Technologies, Inc.(Æ) | 1,200 | 73 | |||||
Producer Durables - 11.1% | Alphabet, Inc. Class A(Æ) | 1,288 | 1,191 | ||||
3M Co. | 4,270 | 836 | Alphabet, Inc. Class C(Æ) | 1,305 | 1,182 | ||
Accenture PLC Class A | 3,500 | 425 | Analog Devices, Inc. | 991 | 75 | ||
AECOM(Æ) | 197 | 7 | Ansys, Inc.(Æ) | 309 | 34 | ||
AGCO Corp. | 898 | 58 | Apple, Inc. | 23,192 | 3,332 | ||
Air Lease Corp. Class A | 479 | 18 | Avnet, Inc. | 1,478 | 57 | ||
Allison Transmission Holdings, Inc. Class A | 500 | 19 | Broadcom, Ltd. | 1,728 | 382 | ||
Ametek, Inc. | 1,190 | 68 | Brocade Communications Systems, Inc. | 1,329 | 17 | ||
Avery Dennison Corp. | 1,187 | 99 | Cadence Design Systems, Inc.(Æ) | 4,432 | 144 | ||
Boeing Co. (The) | 4,507 | 833 | Cisco Systems, Inc. | 26,614 | 907 | ||
Booz Allen Hamilton Holding Corp. Class A | 1,211 | 44 | CSRA, Inc. | 949 | 28 | ||
Caterpillar, Inc. | 4,132 | 423 | Dolby Laboratories, Inc. Class A | 2,834 | 149 | ||
Chicago Bridge & Iron Co. | 2,045 | 62 | DXC Technology Co. | 1,788 | 135 | ||
Cintas Corp. | 713 | 87 | EchoStar Corp. Class A(Æ) | 2,962 | 170 | ||
Copa Holdings, SA Class A | 729 | 85 | Electronic Arts, Inc.(Æ) | 3,031 | 287 | ||
Delta Air Lines, Inc. | 3,588 | 163 | Facebook, Inc. Class A(Æ) | 10,181 | 1,530 | ||
Emerson Electric Co. | 5,760 | 347 | Harris Corp. | 882 | 99 | ||
Flir Systems, Inc. | 1,971 | 72 | Hewlett Packard Enterprise Co. | 9,771 | 182 |
See accompanying notes which are an integral part of the financial statements.
696 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||||||
Principal | Fair | Principal | Fair | |||||||||||
Amount ($) or | Value | Amount ($) or | Value | |||||||||||
Shares | $ | Shares | $ | |||||||||||
HP, Inc. | 9,771 | 184 | Jun 2017 25.00 Call (180) | USD | 18 | (ÿ) | 5 | |||||||
Inovalon Holdings, Inc. Class A(Æ) | 6,491 | 80 | Jul 2017 18.00 Call (90) | USD | 9 | (ÿ) | 9 | |||||||
Intel Corp. | 20,612 | 745 | Jul 2017 19.00 Call (60) | USD | 6 | (ÿ) | 5 | |||||||
Jul 2017 24.00 Call (180) | USD | 18 | (ÿ) | 9 | ||||||||||
International Business Machines Corp. | 3,758 | 602 | Aug 2017 18.00 Call (60) | USD | 6 | (ÿ) | 7 | |||||||
Lam Research Corp. | 1,621 | 235 | Aug 2017 23.00 Call (180) | USD | 18 | (ÿ) | 13 | |||||||
Leidos Holdings, Inc. | 900 | 47 | May 2017 12.00 Put (910) | USD | 91 | (ÿ) | 55 | |||||||
Liberty Interactive Corp.(Æ) | 135 | 7 | May 2017 15.00 Put (100) | USD | 10 | (ÿ) | 31 | |||||||
Marvell Technology Group, Ltd. | 1,954 | 29 | May 2017 16.00 Put (120) | USD | 12 | (ÿ) | 48 | |||||||
May 2017 19.00 Put (180) | USD | 18 | (ÿ) | 124 | ||||||||||
Maxim Integrated Products, Inc. | 1,820 | 80 | Jun 2017 13.00 Put (90) | USD | 9 | (ÿ) | 11 | |||||||
Microchip Technology, Inc. | 2,564 | 194 | Jun 2017 16.00 Put (120) | USD | 12 | (ÿ) | 44 | |||||||
Micron Technology, Inc.(Æ) | 7,807 | 216 | Jun 2017 17.00 Put (180) | USD | 18 | (ÿ) | 83 | |||||||
Microsoft Corp. | 33,818 | 2,315 | Jul 2017 15.00 Put (120) | USD | 12 | (ÿ) | 30 | |||||||
NVIDIA Corp. | 2,344 | 244 | Total Options Purchased | |||||||||||
Oracle Corp. | 18,056 | 812 | (cost $526) | 498 | ||||||||||
QUALCOMM, Inc. | 9,016 | 485 | ||||||||||||
Skyworks Solutions, Inc. | 909 | 91 | Short | -Term Investments - 5.9% | ||||||||||
Tableau Software, Inc. Class A(Æ) | 330 | 18 | U.S. Cash Management Fund | 5,520,102 | (8) | 5,521 | ||||||||
Teradyne, Inc. | 2,531 | 89 | Total Short-Term Investments | |||||||||||
Texas Instruments, Inc. | 5,066 | 401 | ||||||||||||
Twilio, Inc. Class A(Æ) | 1,401 | 46 | (cost $5,521) | 5,521 | ||||||||||
VeriSign, Inc.(Æ) | 1,322 | 118 | ||||||||||||
VMware, Inc. Class A(Æ) | 362 | 34 | Total Investments 100.7% | |||||||||||
Yelp, Inc. Class A(Æ) | 592 | 21 | (identified cost $61,756) | 94,750 | ||||||||||
17,067 | ||||||||||||||
Other Assets and Liabilities, Net | ||||||||||||||
Utilities - 4.7% | - | (0.7%) | (639 | ) | ||||||||||
Ameren Corp. | 3,981 | 218 | Net Assets - 100.0% | 94,111 | ||||||||||
American Electric Power Co., Inc. | 4,308 | 292 | ||||||||||||
AT&T, Inc. | 26,709 | 1,058 | ||||||||||||
Avangrid, Inc. | 2,388 | 104 | ||||||||||||
Calpine Corp.(Æ) | 2,233 | 23 | ||||||||||||
CMS Energy Corp. | 5,891 | 267 | ||||||||||||
Duke Energy Corp. | 5,607 | 462 | ||||||||||||
Exelon Corp. | 6,807 | 236 | ||||||||||||
FirstEnergy Corp. | 1,801 | 54 | ||||||||||||
Frontier Communications Corp. | 7,878 | 15 | ||||||||||||
Hawaiian Electric Industries, Inc. | 5,134 | 172 | ||||||||||||
MDU Resources Group, Inc. | 734 | 20 | ||||||||||||
NiSource, Inc. | 4,424 | 107 | ||||||||||||
NRG Energy, Inc. | 5,010 | 85 | ||||||||||||
OGE Energy Corp. | 508 | 18 | ||||||||||||
Pinnacle West Capital Corp. | 2,359 | 201 | ||||||||||||
SCANA Corp. | 2,626 | 174 | ||||||||||||
Verizon Communications, Inc. | 18,621 | 855 | ||||||||||||
Westar Energy, Inc. Class A | 1,532 | 80 | ||||||||||||
4,441 | ||||||||||||||
Total Common Stocks | ||||||||||||||
(cost $55,709) | 88,731 | |||||||||||||
Options Purchased - 0.5% | ||||||||||||||
(Number of Contracts) | ||||||||||||||
SPX Volatility Index | ||||||||||||||
May 2017 19.00 Call (460) | USD | 46 | (ÿ) | 8 | ||||||||||
May 2017 20.00 Call (450) | USD | 45 | (ÿ) | 7 | ||||||||||
Jun 2017 18.00 Call (100) | USD | 10 | (ÿ) | 6 | ||||||||||
Jun 2017 20.00 Call (60) | USD | 6 | (ÿ) | 3 |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 697
Russell Investment Company
Strategic Call Overwriting Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | ||||||
Amounts in thousands (except contract amounts) | ||||||
Unrealized | ||||||
Appreciation | ||||||
Number of | Notional | Expiration | (Depreciation) | |||
Contracts | Amount | Date | $ | |||
Long Positions | ||||||
S&P 500 E-Mini Index Futures | 42 | USD | 4,999 | 06/17 | 54 | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 54 |
Options Written | |||||||||||
Amounts in thousands (except contract amounts) | |||||||||||
Number of | Strike | Notional | Expiration | Fair Value | |||||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||||
S&P 500 Index | Call | 30 | 2,330.00 | USD | 3 | 05/05/17 | (166 | ) | |||
S&P 500 Index | Call | 70 | 2,395.00 | USD | 7 | 05/05/17 | (26 | ) | |||
S&P 500 Index | Call | 70 | 2,405.00 | USD | 7 | 05/12/17 | (33 | ) | |||
S&P 500 Index | Call | 40 | 2,415.00 | USD | 4 | 05/12/17 | (1 | ) | |||
S&P 500 Index | Call | 130 | 2,305.00 | USD | 13 | 05/19/17 | (1,061 | ) | |||
S&P 500 Index | Call | 40 | 2,385.00 | USD | 4 | 05/26/17 | (78 | ) | |||
SPX Volatility Index | Call | 460 | 14.00 | USD | 46 | 05/17/17 | (20 | ) | |||
SPX Volatility Index | Call | 450 | 15.00 | USD | 45 | 05/17/17 | (17 | ) | |||
SPX Volatility Index | Put | 1,090 | 14.00 | USD | 109 | 05/17/17 | (237 | ) | |||
SPX Volatility Index | Put | 180 | 12.00 | USD | 18 | 06/21/17 | (11 | ) | |||
Total Liability for Options Written (premiums received $1,404) | (1,650 | ) | |||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | |||||||||||
Number of | Premiums | ||||||||||
Contracts | Received | ||||||||||
Outstanding October 31, 2016 | 2,850 | $ | 1,329 | ||||||||
Opened | 11,390 | 5,888 | |||||||||
Closed | (11,680 | ) | (5,813 | ) | |||||||
Expired | — | — | |||||||||
Outstanding April 30, 2017 | 2,560 | $ | 1,404 |
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 12,926 | $ | — | $ | — | $ | — | $ | 12,926 | 13.7 | |||||
Consumer Staples | 6,502 | — | 2 | — | 6,504 | 6.9 | ||||||||||
Energy | 4,986 | — | — | — | 4,986 | 5.3 | ||||||||||
Financial Services | 18,019 | — | — | — | 18,019 | 19.2 | ||||||||||
Health Care | 11,092 | — | — | — | 11,092 | 11.8 | ||||||||||
Materials and Processing | 3,281 | — | — | — | 3,281 | 3.5 | ||||||||||
Producer Durables | 10,415 | — | — | — | 10,415 | 11.1 | ||||||||||
Technology | 17,067 | — | — | — | 17,067 | 18.1 | ||||||||||
Utilities | 4,441 | — | — | — | 4,441 | 4.7 |
See accompanying notes which are an integral part of the financial statements.
698 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Options Purchased | 498 | — | — | — | 498 | 0.5 | ||||||||||||
Short-Term Investments | — | — | — | 5,521 | 5,521 | 5.9 | ||||||||||||
Total Investments | 89,227 | — | 2 | 5,521 | 94,750 | 100.7 | ||||||||||||
Other Assets and Liabilities, Net | (0.7 | ) | ||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 54 | — | — | — | 54 | 0.1 | ||||||||||||
A | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Options Written | (1,650 | ) | — | — | — | (1,650 | ) | (1.8 | ) | |||||||||
Total Other Financial Instruments* | $ | (1,596 | ) | $ | — | $ | — | $ | — | $ | (1,596 | ) |
* Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 699
Russell Investment Company
Strategic Call Overwriting Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | ||||
Derivatives not accounted for as hedging instruments | Contracts | |||
Location: Statement of Assets and Liabilities - Assets | ||||
Investments, at fair value* | $ | 498 | ||
Variation margin on futures contracts** | 54 | |||
Total | $ | 552 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||
Options written, at fair value | $ | 1,650 | ||
Equity | ||||
Derivatives not accounted for as hedging instruments | Contracts | |||
Location: Statement of Operations - Net realized gain (loss) | ||||
Investments*** | $ | (141 | ) | |
Futures contracts | 656 | |||
Options written | (2,225 | ) | ||
Total | $ | (1,710 | ) | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||
Investments**** | $ | 87 | ||
Futures contracts | 72 | |||
Options written | (592 | ) | ||
Total | $ | (433 | ) |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
700 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||
Gross | Net Amounts | |||||||||
Amounts | of Assets | |||||||||
Gross | Offset in the | Presented in | ||||||||
Amounts of | Statement of | the Statement | ||||||||
Recognized | Assets and | of Assets and | ||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||
Options Purchased Contracts | Investments, at fair value | $ | 498 | $ | — | $ | 498 | |||
Total Financial and Derivative Assets | 498 | — | 498 | |||||||
Financial and Derivative Assets not subject to a netting agreement | (498 | ) | — | (498 | ) | |||||
Total Financial and Derivative Assets subject to a netting agreement | $ | — | $ | — | $ | — |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 701
Russell Investment Company
Strategic Call Overwriting Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 12 | $ | — $ | 12 | |||
Options Written Contracts | Options written, at fair value | 1,650 | — | 1,650 | |||||
Total Financial and Derivative Liabilities | 1,662 | — | 1,662 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (1,662 | ) | — | (1,662 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — $ | — |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
702 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 61,756 |
Investments, at fair value(>) | 94,750 | |
Cash (restricted)(a)(b)(c) | 3,179 | |
Receivables: | ||
Dividends and interest | 87 | |
Dividends from affiliated funds | 4 | |
Investments sold | 910 | |
Fund shares sold | 124 | |
Prepaid expenses | 1 | |
Total assets | 99,055 | |
Liabilities | ||
Payables: | ||
Due to custodian | 314 | |
Due to broker (d) | 2,423 | |
Investments purchased | 362 | |
Fund shares redeemed | 23 | |
Accrued fees to affiliates | 56 | |
Other accrued expenses | 104 | |
Variation margin on futures contracts | 12 | |
Options written, at fair value(x) | 1,650 | |
Total liabilities | 4,944 | |
Net Assets | $ | 94,111 |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 703
Russell Investment Company
Strategic Call Overwriting Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 42 | |
Accumulated net realized gain (loss) | (12,713 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 32,994 | ||
Futures contracts | 54 | ||
Options written | (246 | ) | |
Shares of beneficial interest | 74 | ||
Additional paid-in capital | 73,906 | ||
Net Assets | $ | 94,111 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class S(#) | $ | 12.75 | |
Class S — Net assets | $ | 94,110,640 | |
Class S — Shares outstanding ($.01 par value) | 7,383,780 | ||
Amounts in thousands | |||
(x) Premiums received on options written | $ | 1,404 | |
(>) Investments in affiliates, U.S. Cash Management Fund | $ | 5,521 | |
(a) Cash Collateral for Futures | $ | 350 | |
(b) Cash Collateral for Swaps | $ | 168 | |
(c) Cash Collateral for Options | $ | 2,661 | |
(d) Due to Broker for Options | $ | 2,423 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
704 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 890 | |
Dividends from affiliated funds | 19 | ||
Total investment income | 909 | ||
Expenses | |||
Advisory fees | 357 | ||
Administrative fees | 22 | ||
Custodian fees | 49 | ||
Transfer agent fees - Class S | 89 | ||
Professional fees | 32 | ||
Registration fees | 18 | ||
Trustees’ fees | 1 | ||
Printing fees | 3 | ||
Miscellaneous | 8 | ||
Expenses before reductions | 579 | ||
Expense reductions | (146 | ) | |
Net expenses | 433 | ||
Net investment income (loss) | 476 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 1,845 | ||
Futures contracts | 656 | ||
Options written | (2,225 | ) | |
Net realized gain (loss) | 276 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 7,437 | ||
Futures contracts | 72 | ||
Options written | (592 | ) | |
Net change in unrealized appreciation (depreciation) | 6,917 | ||
Net realized and unrealized gain (loss) | 7,193 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 7,669 |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 705
Russell Investment Company
Strategic Call Overwriting Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 476 | $ | 944 | ||
Net realized gain (loss) | 276 | 2,234 | ||||
Net change in unrealized appreciation (depreciation) | 6,917 | 978 | ||||
Net increase (decrease) in net assets from operations | 7,669 | 4,156 | ||||
Distributions | ||||||
From net investment income | ||||||
Class S | (463 | ) | (938 | ) | ||
Net decrease in net assets from distributions | (463 | ) | (938 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 3,857 | (7,572 | ) | |||
Total Net Increase (Decrease) in Net Assets | 11,063 | (4,354 | ) | |||
Net Assets | ||||||
Beginning of period | 83,048 | 87,402 | ||||
End of period | $ | 94,111 | $ | 83,048 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 42 | $ | 29 |
See accompanying notes which are an integral part of the financial statements.
706 Strategic Call Overwriting Fund
Russell Investment Company
Strategic Call Overwriting Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class S | ||||||||||||
Proceeds from shares sold | 800 | $ | 9,839 | 732 | $ | 8,127 | ||||||
Proceeds from reinvestment of distributions | 37 | 463 | 83 | 938 | ||||||||
Payments for shares redeemed | (520 | ) | (6,445 | ) | (1,482 | ) | (16,637 | ) | ||||
Total increase (decrease) | 317 | $ | 3,857 | (667 | ) | $ | (7,572 | ) |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 707
Russell Investment Company
Strategic Call Overwriting Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | |||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | |||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | |||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||
Class S | ||||||||||||||
April 30, 2017* | 11.75 | .07 | .99 | 1.06 | (.06 | ) | — | |||||||
October 31, 2016 | 11.30 | .13 | .45 | .58 | (.13 | ) | — | |||||||
October 31, 2015 | 10.77 | .10 | .53 | .63 | (.10 | ) | — | |||||||
October 31, 2014 | 10.64 | .10 | .13 | .23 | (.10 | ) | — | |||||||
October 31, 2013 | 10.06 | .12 | .65 | .77 | (.13 | ) | (.06 | ) | ||||||
October 31, 2012(3) | 10.00 | .02 | .05 | .07 | (.01 | ) | — | |||||||
See accompanying notes which are an integral part of the financial statements.
708 Strategic Call Overwriting Fund
% | % | % | ||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||
Total Distributions | Period | Return(b) | (000 | ) | Gross(d) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | ||||||||
(.06 | ) | 12.75 | 9.07 | 94,111 | 1.30 | .97 | 1.09 | 8 | ||||||||
(.13 | ) | 11.75 | 5.16 | 83,048 | 1.32 | .97 | 1.14 | 4 | ||||||||
(.10 | ) | 11.30 | 5.84 | 87,402 | 1.19 | .97 | .87 | 1 | ||||||||
(.10 | ) | 10.77 | 2.13 | 86,773 | 1.19 | .97 | .88 | 5 | ||||||||
(.19 | ) | 10.64 | 7.78 | 83,541 | 1.45 | .97 | 1.11 | 3 | ||||||||
(.01 | ) | 10.06 | .68 | 59,941 | 1.88 | .97 | .73 | — |
See accompanying notes which are an integral part of the financial statements.
Strategic Call Overwriting Fund 709
Russell Investment Company
Strategic Call Overwriting Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | |||
Advisory fees | $ | 36,980 | |
Administration fees | 3,674 | ||
Transfer agent fees | 15,228 | ||
Trustee fees | 398 | ||
$ | 56,280 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||
affiliated company are as follows: | |||||||||||||||||
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Management Fund | $ | 2,282 | $ | 11,372 | $ | 8,133 | $ | — | $ — | $ | 5,521 | $ | 19 | $ | — | ||
$ | 2,282 | $ | 11,372 | $ | 8,133 | $ | — | $ — | $ | 5,521 | $ | 19 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 61,751,229 | |||
Unrealized Appreciation | $ | 34,492,790 | |||
Unrealized Depreciation | (1,494,405 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 32,998,385 |
See accompanying notes which are an integral part of the financial statements.
710 Strategic Call Overwriting Fund
Russell Investment Company
Select U.S. Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, and (2) ongoing costs, including advisory and | would have been higher. | |||||
administrative fees and other Fund expenses. The Example is | Hypothetical | |||||
intended to help you understand your ongoing costs (in dollars) | Performance (5% | |||||
of investing in the Fund and to compare these costs with the | Actual | return before | ||||
ongoing costs of investing in other mutual funds. The Example | Class R6 | Performance | expenses) | |||
Beginning Account Value | ||||||
is based on an investment of $1,000 invested at the beginning of | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
the period and held for the entire period indicated, which for this | Ending Account Value | |||||
Fund is from November 1, 2016 to April 30, 2017. | April 30, 2017 | $ | 1,137.80 | $ | 1,022.81 | |
Expenses Paid During Period* | $ | 2.12 | $ | 2.01 | ||
Actual Expenses | ||||||
The information in the table under the heading “Actual | * Expenses are equal to the Fund's annualized expense ratio of 0.40% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance” provides information about actual account values | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
and actual expenses. You may use the information in this column, | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
together with the amount you invested, to estimate the expenses | waivers and/or reimbursements, expenses would have been higher. | |||||
that you paid over the period. Simply divide your account value by | ||||||
Hypothetical | ||||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Performance (5% | |||||
= 8.6), then multiply the result by the number in the first column | Actual | return before | ||||
in the row entitled “Expenses Paid During Period” to estimate | Class S | Performance | expenses) | |||
Beginning Account Value | ||||||
the expenses you paid on your account during this period. | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Hypothetical Example for Comparison Purposes | Ending Account Value | |||||
April 30, 2017 | $ | 1,137.50 | $ | 1,021.97 | ||
The information in the table under the heading “Hypothetical | Expenses Paid During Period* | $ | 3.02 | $ | 2.86 | |
Performance (5% return before expenses)” provides information | ||||||
about hypothetical account values and hypothetical expenses | * Expenses are equal to the Fund's annualized expense ratio of 0.57% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
return of 5% per year before expenses, which is not the Fund’s | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
actual return. The hypothetical account values and expenses | waivers and/or reimbursements, expenses would have been higher. | |||||
may not be used to estimate the actual ending account balance or | ||||||
Hypothetical | ||||||
expenses you paid for the period. You may use this information | Performance (5% | |||||
to compare the ongoing costs of investing in the Fund and other | Actual | return before | ||||
funds. To do so, compare this 5% hypothetical example with the | Class T | Performance | expenses) | |||
5% hypothetical examples that appear in the shareholder reports | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
of other funds. | Ending Account Value | |||||
April 30, 2017 | $ | 1,138.70 | $ | 1,022.71 | ||
Expenses Paid During Period* | $ | 2.23 | $ | 2.11 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.42% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Select U.S. Equity Fund 711
Russell Investment Company
Select U.S. Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,139.00 | $ | 1,022.96 | ||
Expenses Paid During Period* | $ | 1.96 | $ | 1.86 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.37% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
712 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Common Stocks - 94.1% | Harley-Davidson, Inc. | 21,334 | 1,212 | ||||
Consumer Discretionary - 12.7% | Hasbro, Inc. | 6,303 | 625 | ||||
Advance Auto Parts, Inc. | 3,581 | 509 | Hilton Grand Vacations, Inc.(Æ) | 462 | 16 | ||
Amazon.com, Inc.(Æ) | 12,340 | 11,414 | Hilton Worldwide Holdings, Inc. | 2,753 | 162 | ||
AMC Networks, Inc. Class A(Æ) | 1,847 | 110 | Home Depot, Inc. (The) | 35,507 | 5,543 | ||
Amerco, Inc. | 388 | 145 | Hyatt Hotels Corp. Class A(Æ) | 2,172 | 121 | ||
Aramark | 2,052 | 75 | International Game Technology PLC | 631 | 14 | ||
AutoNation, Inc.(Æ) | 4,010 | 168 | Interpublic Group of Cos., Inc. (The) | 4,851 | 114 | ||
AutoZone, Inc.(Æ) | 751 | 520 | JC Penney Co., Inc.(Æ) | 13,152 | 71 | ||
Avis Budget Group, Inc.(Æ) | 1,244 | 38 | John Wiley & Sons, Inc. Class A | 3,769 | 199 | ||
Bed Bath & Beyond, Inc. | 19,349 | 750 | KAR Auction Services, Inc. | 5,384 | 235 | ||
Best Buy Co., Inc. | 34,614 | 1,793 | Kate Spade & Co.(Æ) | 4,208 | 73 | ||
BorgWarner, Inc. | 21,588 | 913 | Kohl's Corp. | 12,839 | 501 | ||
Brinker International, Inc. | 3,937 | 174 | L Brands, Inc. | 7,341 | 388 | ||
Brunswick Corp. | 3,588 | 204 | Las Vegas Sands Corp. | 10,617 | 626 | ||
Cabela's, Inc.(Æ) | 2,424 | 132 | Lear Corp. | 8,497 | 1,212 | ||
Cable One, Inc. | 439 | 299 | Leggett & Platt, Inc. | 3,594 | 189 | ||
CalAtlantic Group, Inc. | 865 | 31 | Lennar Corp. Class A | 10,740 | 542 | ||
CarMax, Inc.(Æ) | 4,329 | 253 | Liberty Broadband Corp. Class A(Æ) | 197 | 18 | ||
Carnival Corp. | 30,985 | 1,914 | Liberty Broadband Corp. Class C(Æ) | 4,710 | 429 | ||
Carter's, Inc. | 1,660 | 153 | Liberty Interactive Corp. Class A(Æ) | 16,193 | 343 | ||
CBS Corp. Class B | 24,950 | 1,661 | Liberty SiriusXM Group Class C(Æ) | 8,508 | 323 | ||
Charter Communications, Inc. Class A(Æ) | 4,915 | 1,697 | Lions Gate Entertainment Corp. Class A(Æ) | 565 | 15 | ||
Chipotle Mexican Grill, Inc. Class A(Æ) | 448 | 213 | Lions Gate Entertainment Corp. Class B(Æ) | 1,457 | 35 | ||
Choice Hotels International, Inc. | 1,766 | 111 | Live Nation Entertainment, Inc.(Æ) | 4,942 | 159 | ||
Cinemark Holdings, Inc. | 3,591 | 155 | LKQ Corp.(Æ) | 12,758 | 399 | ||
Coach, Inc. | 8,667 | 341 | Lowe's Cos., Inc. | 14,408 | 1,223 | ||
Comcast Corp. Class A | 199,777 | 7,829 | Lululemon Athletica, Inc.(Æ) | 2,488 | 129 | ||
Costco Wholesale Corp. | 15,143 | 2,688 | Macy's, Inc. | 21,670 | 633 | ||
Coty, Inc. Class A | 6,823 | 122 | Madison Square Garden Co. (The) Class A(Æ) | 1,453 | 293 | ||
Darden Restaurants, Inc. | 5,408 | 461 | Marriott International, Inc. Class A | 4,073 | 385 | ||
Dick's Sporting Goods, Inc. | 9,198 | 465 | Mattel, Inc. | 13,680 | 307 | ||
Dillard's, Inc. Class A | 1,276 | 71 | McDonald's Corp. | 24,507 | 3,429 | ||
Discovery Communications, Inc. Class A(Æ) | 14,032 | 404 | Media General, Inc.(Æ) | 1,092 | 2 | ||
Discovery Communications, Inc. Class C(Æ) | 5,114 | 143 | MGM Resorts International | 18,337 | 563 | ||
DISH Network Corp. Class A(Æ) | 6,803 | 438 | Michael Kors Holdings, Ltd.(Æ) | 9,535 | 356 | ||
Dollar General Corp. | 17,110 | 1,244 | Michaels Cos., Inc. (The)(Æ) | 2,792 | 65 | ||
Dollar Tree, Inc.(Æ) | 5,838 | 483 | Mohawk Industries, Inc.(Æ) | 5,580 | 1,310 | ||
Domino's Pizza, Inc. | 2,001 | 363 | Murphy USA, Inc.(Æ) | 2,220 | 154 | ||
DR Horton, Inc. | 27,891 | 917 | Netflix, Inc.(Æ) | 9,310 | 1,417 | ||
Dunkin' Brands Group, Inc. | 2,779 | 155 | Newell Rubbermaid, Inc. | 20,739 | 990 | ||
eBay, Inc.(Æ) | 46,903 | 1,567 | News Corp. Class A | 24,001 | 305 | ||
Estee Lauder Cos., Inc. (The) Class A | 12,258 | 1,068 | Nielsen Holdings PLC | 13,843 | 569 | ||
Expedia, Inc. | 1,588 | 212 | Nike, Inc. Class B | 44,905 | 2,488 | ||
Fitbit, Inc. Class A(Æ) | 8,873 | 51 | Nordstrom, Inc. | 8,368 | 404 | ||
Foot Locker, Inc. | 13,158 | 1,018 | Norwegian Cruise Line Holdings, Ltd.(Æ) | 4,596 | 248 | ||
Ford Motor Co. | 192,327 | 2,206 | NVR, Inc.(Æ) | 135 | 285 | ||
Fortune Brands Home & Security, Inc. | 2,332 | 149 | Omnicom Group, Inc. | 10,764 | 884 | ||
GameStop Corp. Class A | 9,150 | 208 | O'Reilly Automotive, Inc.(Æ) | 3,002 | 745 | ||
Gap, Inc. (The) | 27,139 | 711 | Outfront Media, Inc.(ö) | 1,765 | 46 | ||
Garmin, Ltd. | 16,134 | 820 | Pandora Media, Inc.(Æ) | 2,887 | 31 | ||
General Motors Co. | 71,890 | 2,490 | Panera Bread Co. Class A(Æ) | 265 | 83 | ||
Gentex Corp. | 26,165 | 540 | Penske Automotive Group, Inc. | 3,646 | 174 | ||
Genuine Parts Co. | 10,511 | 967 | Polaris Industries, Inc. | 2,371 | 202 | ||
Goodyear Tire & Rubber Co. (The) | 24,529 | 889 | Priceline Group, Inc. (The)(Æ) | 1,620 | 2,992 | ||
Graham Holdings Co. Class B | 297 | 179 | PulteGroup, Inc. | 26,509 | 601 | ||
H&R Block, Inc. | 12,701 | 315 | PVH Corp. | 8,237 | 832 | ||
Hanesbrands, Inc. | 19,790 | 432 | Ralph Lauren Corp. Class A | 4,970 | 401 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 713
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Regal Entertainment Group Class A | 5,241 | 116 | Church & Dwight Co., Inc. | 18,019 | 892 | ||
Ross Stores, Inc. | 19,425 | 1,263 | Clorox Co. (The) | 4,360 | 583 | ||
Royal Caribbean Cruises, Ltd. | 9,188 | 979 | Coca-Cola Co. (The) | 125,030 | 5,395 | ||
Sally Beauty Holdings, Inc.(Æ) | 9,521 | 181 | Colgate-Palmolive Co. | 21,707 | 1,564 | ||
Scripps Networks Interactive, Inc. Class A | 11,369 | 850 | Conagra Brands, Inc. | 11,549 | 448 | ||
Service Corp. International | 3,933 | 127 | Constellation Brands, Inc. Class A | 7,541 | 1,301 | ||
ServiceMaster Global Holdings, Inc.(Æ) | 2,525 | 96 | CVS Health Corp. | 48,718 | 4,016 | ||
Signet Jewelers, Ltd. | 5,108 | 336 | Dr Pepper Snapple Group, Inc. | 9,893 | 907 | ||
Sirius XM Holdings, Inc. | 34,549 | 171 | Energizer Holdings, Inc.(Æ) | 3,539 | 214 | ||
Six Flags Entertainment Corp. | 1,024 | 64 | Flowers Foods, Inc. | 7,852 | 154 | ||
Skechers U.S.A., Inc. Class A(Æ) | 8,123 | 205 | General Mills, Inc. | 21,249 | 1,222 | ||
Staples, Inc. | 40,234 | 393 | Hain Celestial Group, Inc. (The)(Æ) | 6,026 | 223 | ||
Starbucks Corp. | 36,370 | 2,184 | Herbalife, Ltd.(Æ) | 4,342 | 275 | ||
Target Corp. | 34,346 | 1,918 | Hershey Co. (The) | 8,538 | 924 | ||
TEGNA, Inc. | 22,926 | 584 | Hormel Foods Corp. | 23,817 | 835 | ||
Tempur Sealy International, Inc.(Æ) | 114 | 5 | Ingredion, Inc. | 4,827 | 598 | ||
Tesla, Inc.(Æ) | 1,568 | 493 | JM Smucker Co. (The) | 9,560 | 1,211 | ||
Thomson Reuters Corp. | 11,605 | 527 | Kellogg Co. | 5,554 | 394 | ||
Thor Industries, Inc. | 4,012 | 386 | Kimberly-Clark Corp. | 9,779 | 1,269 | ||
Tiffany & Co. | 1,892 | 173 | Kraft Heinz Co. (The) | 24,134 | 2,181 | ||
Time Warner, Inc. | 43,654 | 4,334 | Kroger Co. (The) | 38,024 | 1,127 | ||
TJX Cos., Inc. | 29,882 | 2,350 | McCormick & Co., Inc. | 9,865 | 986 | ||
Toll Brothers, Inc. | 7,709 | 277 | Mead Johnson Nutrition Co. Class A | 5,060 | 449 | ||
Tractor Supply Co. | 4,816 | 298 | Molson Coors Brewing Co. Class B | 4,494 | 431 | ||
Tribune Media Co. Class A | 2,949 | 108 | Mondelez International, Inc. Class A | 61,713 | 2,779 | ||
TripAdvisor, Inc.(Æ) | 1,688 | 76 | Monster Beverage Corp.(Æ) | 8,712 | 395 | ||
Tupperware Brands Corp. | 3,894 | 280 | Nu Skin Enterprises, Inc. Class A | 5,868 | 324 | ||
Twenty-First Century Fox, Inc. Class A | 73,375 | 2,241 | PepsiCo, Inc. | 55,030 | 6,234 | ||
Twenty-First Century Fox, Inc. Class B | 15,127 | 452 | Philip Morris International, Inc. | 54,761 | 6,070 | ||
Ulta Beauty, Inc.(Æ) | 3,257 | 917 | Pilgrim's Pride Corp. | 2,488 | 65 | ||
Under Armour, Inc. Class A(Æ) | 4,105 | 88 | Pinnacle Foods, Inc. | 6,847 | 398 | ||
Under Armour, Inc. Class C(Æ) | 4,134 | 80 | Post Holdings, Inc.(Æ) | 1,318 | 111 | ||
Urban Outfitters, Inc.(Æ) | 6,556 | 150 | Procter & Gamble Co. (The) | 107,427 | 9,382 | ||
Vail Resorts, Inc. | 252 | 50 | Reynolds American, Inc. | 26,671 | 1,720 | ||
VF Corp. | 21,081 | 1,152 | Rite Aid Corp.(Æ) | 19,919 | 80 | ||
Viacom, Inc. Class B | 20,746 | 883 | Safeway, Inc.(Æ) | 4,520 | 2 | ||
Vista Outdoor, Inc.(Æ) | 1,515 | 30 | Sysco Corp. | 19,876 | 1,051 | ||
WABCO Holdings, Inc.(Æ) | 1,600 | 190 | TreeHouse Foods, Inc.(Æ) | 1,937 | 170 | ||
Wal-Mart Stores, Inc. | 86,994 | 6,540 | Tyson Foods, Inc. Class A | 26,262 | 1,688 | ||
Walt Disney Co. (The) | 56,237 | 6,501 | Walgreens Boots Alliance, Inc. | 41,762 | 3,614 | ||
Wendy's Co. (The) | 5,007 | 74 | Whole Foods Market, Inc. | 5,766 | 210 | ||
Whirlpool Corp. | 5,602 | 1,040 | 70,466 | ||||
Williams-Sonoma, Inc. | 6,805 | 368 | |||||
Wyndham Worldwide Corp. | 4,312 | 411 | Energy - 5.3% | ||||
Wynn Resorts, Ltd. | 1,138 | 140 | Anadarko Petroleum Corp. | 16,741 | 955 | ||
Yum China Holdings, Inc.(Æ) | 20,437 | 697 | Antero Resources Corp.(Æ) | 7,252 | 154 | ||
Yum! Brands, Inc. | 12,108 | 796 | Apache Corp. | 18,528 | 901 | ||
Zillow Group, Inc.(Æ) | 992 | 39 | Baker Hughes, Inc. | 19,431 | 1,154 | ||
Zillow Group, Inc. Class A(Æ) | 496 | 19 | Cabot Oil & Gas Corp. | 4,371 | 102 | ||
131,120 | Chesapeake Energy Corp.(Æ) | 22,897 | 120 | ||||
Chevron Corp. | 76,327 | 8,144 | |||||
Consumer Staples - 6.8% | Cimarex Energy Co. | 866 | 101 | ||||
Altria Group, Inc. | 64,964 | 4,663 | Concho Resources, Inc.(Æ) | 4,395 | 557 | ||
Archer-Daniels-Midland Co. | 39,966 | 1,828 | ConocoPhillips | 32,104 | 1,538 | ||
Brown-Forman Corp. Class B - ADR | 18,941 | 896 | CONSOL Energy, Inc.(Æ) | 2,845 | 43 | ||
Bunge, Ltd. | 9,338 | 738 | Continental Resources, Inc.(Æ) | 2,645 | 112 | ||
Campbell Soup Co. | 7,803 | 449 | Devon Energy Corp. | 16,883 | 667 |
See accompanying notes which are an integral part of the financial statements.
714 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Diamond Offshore Drilling, Inc.(Æ) | 2,936 | 42 | Alleghany Corp.(Æ) | 871 | 532 | ||
Diamondback Energy, Inc.(Æ) | 1,366 | 136 | Alliance Data Systems Corp. | 522 | 130 | ||
Dril-Quip, Inc.(Æ) | 3,313 | 171 | Allied World Assurance Co. Holdings AG | 11,389 | 605 | ||
Enbridge, Inc. | 15,844 | 657 | Allstate Corp. (The) | 31,944 | 2,597 | ||
Energen Corp.(Æ) | 2,834 | 147 | Ally Financial, Inc. | 17,886 | 354 | ||
Ensco PLC Class A | 5,823 | 46 | American Campus Communities, Inc.(ö) | 5,404 | 256 | ||
EOG Resources, Inc. | 12,523 | 1,158 | American Express Co. | 36,608 | 2,901 | ||
EQT Corp. | 1,924 | 112 | American Financial Group, Inc. | 4,824 | 469 | ||
Exxon Mobil Corp. | 180,130 | 14,708 | American Homes 4 Rent Class A(ö) | 11,191 | 258 | ||
First Solar, Inc.(Æ) | 2,169 | 64 | American International Group, Inc. | 49,089 | 2,990 | ||
Gulfport Energy Corp.(Æ) | 3,498 | 56 | American Tower Corp.(ö) | 9,914 | 1,249 | ||
Halliburton Co. | 33,716 | 1,547 | Ameriprise Financial, Inc. | 11,873 | 1,518 | ||
Helmerich & Payne, Inc. | 3,950 | 240 | AmTrust Financial Services, Inc. | 3,104 | 50 | ||
Hess Corp. | 6,481 | 317 | Annaly Capital Management, Inc.(ö) | 67,989 | 803 | ||
HollyFrontier Corp. | 20,994 | 591 | Aon PLC | 7,196 | 862 | ||
Kinder Morgan, Inc. | 56,721 | 1,170 | Arch Capital Group, Ltd.(Æ) | 16,318 | 1,582 | ||
Marathon Oil Corp. | 19,798 | 294 | Arthur J Gallagher & Co. | 9,727 | 543 | ||
Marathon Petroleum Corp. | 39,633 | 2,019 | Aspen Insurance Holdings, Ltd. | 5,583 | 292 | ||
Murphy Oil Corp. | 4,444 | 116 | Associated Banc-Corp. | 11,380 | 283 | ||
Nabors Industries, Ltd. | 11,284 | 117 | Assurant, Inc. | 4,180 | 402 | ||
National Oilwell Varco, Inc. | 25,062 | 876 | Assured Guaranty, Ltd. | 10,835 | 413 | ||
Newfield Exploration Co.(Æ) | 4,602 | 159 | AvalonBay Communities, Inc.(ö) | 2,985 | 567 | ||
Noble Corp. PLC | 31,050 | 149 | Axis Capital Holdings, Ltd. | 9,932 | 655 | ||
Noble Energy, Inc. | 10,040 | 325 | Bank of America Corp. | 467,725 | 10,917 | ||
Occidental Petroleum Corp. | 21,424 | 1,318 | Bank of Hawaii Corp. | 2,916 | 238 | ||
Oceaneering International, Inc. | 8,196 | 216 | Bank of New York Mellon Corp. (The) | 59,893 | 2,819 | ||
ONEOK, Inc. | 2,393 | 126 | BankUnited, Inc. | 6,270 | 221 | ||
Patterson-UTI Energy, Inc. | 6,123 | 133 | BB&T Corp. | 52,583 | 2,271 | ||
PBF Energy, Inc. Class A | 7,988 | 178 | Berkshire Hathaway, Inc. Class B(Æ) | 84,645 | 13,984 | ||
Phillips 66 | 36,855 | 2,932 | BlackRock, Inc. Class A | 5,014 | 1,928 | ||
Pioneer Natural Resources Co. | 3,868 | 669 | BOK Financial Corp. | 3,221 | 271 | ||
QEP Resources, Inc.(Æ) | 3,935 | 47 | Boston Properties, Inc.(ö) | 1,244 | 157 | ||
Range Resources Corp. | 8,379 | 222 | Broadridge Financial Solutions, Inc. | 3,942 | 276 | ||
Rice Energy, Inc.(Æ) | 2,475 | 53 | Brown & Brown, Inc. | 6,251 | 268 | ||
Rowan Cos. PLC Class A(Æ) | 11,136 | 157 | Camden Property Trust(ö) | 3,722 | 306 | ||
RPC, Inc. | 5,838 | 106 | Capital One Financial Corp. | 27,985 | 2,249 | ||
Schlumberger, Ltd. | 50,219 | 3,645 | Care Capital Properties, Inc.(ö) | 1,488 | 40 | ||
SM Energy Co. | 3,762 | 85 | CBOE Holdings, Inc. | 3,550 | 293 | ||
Southwestern Energy Co.(Æ) | 5,913 | 44 | CBRE Group, Inc. Class A(Æ) | 11,179 | 400 | ||
Superior Energy Services, Inc.(Æ) | 3,258 | 39 | Charles Schwab Corp. (The) | 28,956 | 1,125 | ||
Targa Resources Corp. | 1,936 | 107 | Chimera Investment Corp.(ö) | 17,002 | 346 | ||
TechnipFMC PLC(Æ) | 3,372 | 102 | Chubb, Ltd. | 27,417 | 3,763 | ||
Tesoro Corp. | 9,012 | 718 | Cincinnati Financial Corp. | 17,376 | 1,253 | ||
Transocean, Ltd.(Æ) | 31,604 | 349 | CIT Group, Inc. | 7,910 | 366 | ||
Valero Energy Corp. | 38,029 | 2,457 | Citigroup, Inc. | 122,598 | 7,248 | ||
Weatherford International PLC(Æ) | 16,505 | 95 | Citizens Financial Group, Inc. | 33,049 | 1,213 | ||
Whiting Petroleum Corp.(Æ) | 4,989 | 41 | CME Group, Inc. Class A | 8,480 | 985 | ||
Williams Cos., Inc. (The) | 14,200 | 435 | CNA Financial Corp. | 4,903 | 222 | ||
World Fuel Services Corp. | 8,423 | 310 | Colony NorthStar, Inc. Class A(ö) | 12,678 | 166 | ||
WPX Energy, Inc.(Æ) | 8,310 | 99 | Comerica, Inc. | 7,008 | 495 | ||
54,448 | Commerce Bancshares, Inc. | 7,497 | 412 | ||||
CoreCivic, Inc.(Æ) | 7,424 | 256 | |||||
Financial Services - 20.5% | CoreLogic, Inc.(Æ) | 4,799 | 205 | ||||
Affiliated Managers Group, Inc. | 1,980 | 328 | Credit Acceptance Corp.(Æ) | 361 | 73 | ||
Aflac, Inc. | 39,577 | 2,964 | Crown Castle International Corp.(ö) | 7,162 | 678 | ||
AGNC Investment Corp. | 33,761 | 711 | CubeSmart(ö) | 1,335 | 34 | ||
Alexandria Real Estate Equities, Inc.(ö) | 2,156 | 243 | Cullen/Frost Bankers, Inc. | 6,986 | 659 | ||
DCT Industrial Trust, Inc.(ö) | 840 | 42 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 715
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Digital Realty Trust, Inc.(ö) | 3,684 | 423 | Markel Corp.(Æ) | 205 | 199 | ||
Discover Financial Services | 26,236 | 1,642 | MarketAxess Holdings, Inc. | 608 | 117 | ||
Douglas Emmett, Inc.(ö) | 2,249 | 85 | Marsh & McLennan Cos., Inc. | 16,992 | 1,260 | ||
Duke Realty Corp.(ö) | 8,466 | 235 | MasterCard, Inc. Class A | 35,804 | 4,165 | ||
Dun & Bradstreet Corp. (The) | 2,153 | 236 | Mercury General Corp. | 3,650 | 224 | ||
E*Trade Financial Corp.(Æ) | 11,959 | 413 | MetLife, Inc. | 45,969 | 2,382 | ||
East West Bancorp, Inc. | 12,264 | 666 | MFA Financial, Inc.(ö) | 42,190 | 351 | ||
Eaton Vance Corp. | 1,852 | 80 | Mid-America Apartment Communities, Inc. | ||||
EPR Properties(ö) | 579 | 42 | (ö) | 3,538 | 351 | ||
Equifax, Inc. | 5,377 | 728 | Moody's Corp. | 7,457 | 882 | ||
Equinix, Inc.(ö) | 623 | 260 | Morgan Stanley | 89,404 | 3,877 | ||
Equity LifeStyle Properties, Inc. Class A(ö) | 4,591 | 371 | Morningstar, Inc. | 1,951 | 143 | ||
Equity Residential(ö) | 11,947 | 772 | MSCI, Inc. Class A | 4,908 | 492 | ||
Erie Indemnity Co. Class A | 2,113 | 262 | Nasdaq, Inc. | 6,492 | 447 | ||
Essex Property Trust, Inc.(ö) | 852 | 208 | National Retail Properties, Inc.(ö) | 8,752 | 370 | ||
Everest Re Group, Ltd. | 6,163 | 1,551 | Navient Corp. | 25,060 | 381 | ||
Extra Space Storage, Inc.(ö) | 2,720 | 205 | New York Community Bancorp, Inc. | 14,119 | 188 | ||
FactSet Research Systems, Inc. | 587 | 96 | Northern Trust Corp. | 8,197 | 738 | ||
Federal Realty Investment Trust(ö) | 3,280 | 429 | Old Republic International Corp. | 9,347 | 193 | ||
Federated Investors, Inc. Class B | 5,832 | 156 | Omega Healthcare Investors, Inc.(ö) | 5,631 | 186 | ||
Fidelity National Information Services, Inc. | 10,058 | 847 | OneMain Holdings, Inc.(Æ) | 1,626 | 38 | ||
Fifth Third Bancorp | 63,854 | 1,560 | PacWest Bancorp | 9,542 | 471 | ||
First American Financial Corp. | 5,429 | 236 | Park Hotels & Resorts, Inc. (ö) | 3,639 | 93 | ||
First Horizon National Corp. | 7,257 | 133 | PayPal Holdings, Inc.(Æ) | 42,538 | 2,030 | ||
First Republic Bank | 1,439 | 133 | People's United Financial, Inc. | 24,183 | 422 | ||
Fiserv, Inc.(Æ) | 4,539 | 541 | PNC Financial Services Group, Inc. (The) | 31,174 | 3,733 | ||
FleetCor Technologies, Inc.(Æ) | 2,813 | 397 | Popular, Inc. | 5,381 | 226 | ||
FNF Group | 24,151 | 989 | Principal Financial Group, Inc. | 28,960 | 1,886 | ||
Forest City Realty Trust, Inc. Class A(ö) | 4,614 | 104 | ProAssurance Corp. | 797 | 49 | ||
Franklin Resources, Inc. | 34,304 | 1,479 | Progressive Corp. (The) | 59,976 | 2,382 | ||
GGP, Inc.(Æ) | 22,007 | 476 | Prologis, Inc.(ö) | 12,725 | 692 | ||
Global Payments, Inc. | 5,281 | 432 | Prudential Financial, Inc. | 26,887 | 2,878 | ||
Goldman Sachs Group, Inc. (The) | 18,560 | 4,154 | Public Storage(ö) | 5,647 | 1,182 | ||
Hanover Insurance Group, Inc. (The) | 2,047 | 181 | Quality Care Properties, Inc. (Æ)(ö) | 2,127 | 37 | ||
Hartford Financial Services Group, Inc. | 23,114 | 1,118 | Raymond James Financial, Inc. | 9,326 | 695 | ||
HCP, Inc.(ö) | 13,096 | 411 | Rayonier, Inc.(ö) | 3,305 | 93 | ||
Highwoods Properties, Inc.(ö) | 2,271 | 116 | Realogy Holdings Corp. | 4,007 | 122 | ||
Hospitality Properties Trust(ö) | 2,077 | 66 | Realty Income Corp.(ö) | 8,175 | 477 | ||
Huntington Bancshares, Inc. | 55,848 | 718 | Regency Centers Corp.(ö) | 2,851 | 180 | ||
Interactive Brokers Group, Inc. Class A | 2,147 | 75 | Regions Financial Corp. | 120,503 | 1,657 | ||
Intercontinental Exchange, Inc. | 30,530 | 1,838 | Reinsurance Group of America, Inc. Class A | 3,544 | 443 | ||
Invesco, Ltd. | 20,953 | 690 | RenaissanceRe Holdings, Ltd. | 4,482 | 637 | ||
Jack Henry & Associates, Inc. | 4,848 | 470 | Santander Consumer USA Holdings, Inc.(Æ) | 3,537 | 45 | ||
Jones Lang LaSalle, Inc. | 3,322 | 382 | SBA Communications Corp.(Æ)(ö) | 2,199 | 278 | ||
JPMorgan Chase & Co. | 172,438 | 15,002 | SEI Investments Co. | 2,080 | 105 | ||
KeyCorp | 77,073 | 1,406 | Senior Housing Properties Trust(ö) | 7,976 | 172 | ||
Kilroy Realty Corp.(ö) | 1,741 | 123 | Signature Bank(Æ) | 4,678 | 648 | ||
Lamar Advertising Co. Class A(ö) | 2,042 | 147 | Simon Property Group, Inc.(ö) | 7,926 | 1,310 | ||
Lazard, Ltd. Class A | 10,927 | 469 | SLM Corp.(Æ) | 15,017 | 188 | ||
Legg Mason, Inc. | 5,408 | 202 | Spirit Realty Capital, Inc.(ö) | 4,561 | 43 | ||
Leucadia National Corp. | 16,766 | 426 | Starwood Property Trust, Inc.(ö) | 21,346 | 484 | ||
Liberty Property Trust(ö) | 4,493 | 182 | State Street Corp. | 26,203 | 2,198 | ||
Life Storage, Inc.(Æ) | 196 | 15 | Sun Communities, Inc.(ö) | 952 | 80 | ||
Lincoln National Corp. | 19,137 | 1,262 | SunTrust Banks, Inc. | 36,293 | 2,062 | ||
Loews Corp. | 26,364 | 1,229 | SVB Financial Group(Æ) | 1,778 | 313 | ||
LPL Financial Holdings, Inc. | 1,578 | 66 | Synchrony Financial | 48,046 | 1,336 | ||
M&T Bank Corp. | 11,583 | 1,800 | Synovus Financial Corp. | 7,426 | 310 | ||
Macerich Co. (The)(ö) | 3,901 | 244 | T Rowe Price Group, Inc. | 13,178 | 934 |
See accompanying notes which are an integral part of the financial statements.
716 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Taubman Centers, Inc.(ö) | 1,323 | 83 | Brookdale Senior Living, Inc. Class A(Æ) | 1,153 | 15 | ||
TCF Financial Corp. | 5,745 | 95 | Bruker Corp. | 1,963 | 48 | ||
TD Ameritrade Holding Corp. | 7,288 | 279 | Cardinal Health, Inc. | 22,705 | 1,648 | ||
Torchmark Corp. | 19,425 | 1,490 | Celgene Corp.(Æ) | 18,850 | 2,338 | ||
Total System Services, Inc. | 5,217 | 299 | Centene Corp.(Æ) | 11,031 | 821 | ||
Travelers Cos., Inc. (The) | 26,194 | 3,187 | Cerner Corp.(Æ) | 12,014 | 778 | ||
Two Harbors Investment Corp.(ö) | 14,096 | 141 | Charles River Laboratories International, | ||||
UDR, Inc.(ö) | 5,251 | 196 | Inc.(Æ) | 1,349 | 121 | ||
Uniti Group, Inc.(ö) | 5,405 | 148 | Cigna Corp. | 15,731 | 2,460 | ||
Unum Group | 13,062 | 605 | Cooper Cos., Inc. (The) | 2,645 | 530 | ||
US Bancorp | 79,632 | 4,084 | CR Bard, Inc. | 4,772 | 1,467 | ||
Validus Holdings, Ltd. | 4,507 | 249 | DaVita HealthCare Partners, Inc.(Æ) | 11,019 | 760 | ||
Vantiv, Inc. Class A(Æ) | 3,943 | 245 | Dentsply Sirona, Inc. | 13,475 | 852 | ||
Ventas, Inc.(ö) | 12,461 | 798 | DexCom, Inc.(Æ) | 2,246 | 175 | ||
Visa, Inc. Class A | 55,544 | 5,067 | Edwards Lifesciences Corp.(Æ) | 6,331 | 694 | ||
Vornado Realty Trust(ö) | 946 | 91 | Eli Lilly & Co. | 29,599 | 2,429 | ||
Voya Financial, Inc. | 11,000 | 411 | Endo International PLC(Æ) | 8,655 | 98 | ||
Weingarten Realty Investors(ö) | 4,799 | 157 | Envision Healthcare Corp.(Æ) | 2,727 | 153 | ||
Wells Fargo & Co. | 209,072 | 11,256 | Express Scripts Holding Co.(Æ) | 25,994 | 1,595 | ||
Welltower, Inc.(ö) | 8,749 | 625 | Gilead Sciences, Inc. | 53,626 | 3,676 | ||
Western Union Co. (The) | 40,794 | 810 | HCA Holdings, Inc.(Æ) | 22,337 | 1,881 | ||
WEX, Inc.(Æ) | 159 | 16 | Henry Schein, Inc.(Æ) | 5,047 | 877 | ||
Weyerhaeuser Co.(ö) | 13,361 | 453 | Hill-Rom Holdings, Inc. | 2,022 | 153 | ||
White Mountains Insurance Group, Ltd. | 286 | 246 | Hologic, Inc.(Æ) | 6,459 | 292 | ||
WR Berkley Corp. | 13,891 | 944 | Humana, Inc. | 8,745 | 1,941 | ||
XL Group, Ltd. | 30,639 | 1,282 | IDEXX Laboratories, Inc.(Æ) | 1,635 | 274 | ||
Zions Bancorporation | 5,700 | 228 | Illumina, Inc.(Æ) | 4,008 | 741 | ||
211,075 | Incyte Corp.(Æ) | 3,501 | 435 | ||||
Intercept Pharmaceuticals, Inc.(Æ) | 1,710 | 192 | |||||
Health Care - 11.7% | Intrexon Corp.(Æ) | 7,253 | 151 | ||||
Abbott Laboratories | 45,257 | 1,975 | Intuitive Surgical, Inc.(Æ) | 1,283 | 1,072 | ||
AbbVie, Inc. | 37,803 | 2,493 | Ionis Pharmaceuticals, Inc.(Æ) | 5,657 | 273 | ||
Acadia Healthcare Co., Inc.(Æ) | 3,391 | 148 | Johnson & Johnson | 119,266 | 14,726 | ||
Acadia Pharmaceuticals, Inc.(Æ) | 8,977 | 308 | Juno Therapeutics, Inc.(Æ) | 11,436 | 285 | ||
Aetna, Inc. | 20,236 | 2,733 | Laboratory Corp. of America Holdings(Æ) | 8,984 | 1,259 | ||
Agilent Technologies, Inc. | 11,232 | 618 | LifePoint Health, Inc.(Æ) | 3,362 | 209 | ||
Agios Pharmaceuticals, Inc.(Æ) | 5,028 | 250 | Mallinckrodt PLC(Æ) | 3,935 | 185 | ||
Akorn, Inc.(Æ) | 1,963 | 66 | McKesson Corp. | 14,661 | 2,028 | ||
Alere, Inc.(Æ) | 2,355 | 116 | MEDNAX, Inc.(Æ) | 9,694 | 585 | ||
Alexion Pharmaceuticals, Inc.(Æ) | 6,016 | 769 | Medtronic PLC | 48,350 | 4,017 | ||
Align Technology, Inc.(Æ) | 3,507 | 472 | Merck & Co., Inc. | 111,959 | 6,978 | ||
Alkermes PLC(Æ) | 4,069 | 237 | Mylan NV(Æ) | 21,659 | 809 | ||
Allergan PLC(Æ) | 11,482 | 2,800 | Neurocrine Biosciences, Inc.(Æ) | 4,950 | 264 | ||
Allscripts Healthcare Solutions, Inc.(Æ) | 7,622 | 91 | OPKO Health, Inc.(Æ) | 19,979 | 155 | ||
Alnylam Pharmaceuticals, Inc.(Æ) | 4,417 | 237 | Patterson Cos., Inc. | 8,551 | 380 | ||
AmerisourceBergen Corp. Class A | 10,047 | 824 | PerkinElmer, Inc. | 2,634 | 157 | ||
Amgen, Inc. | 30,244 | 4,939 | Perrigo Co. PLC | 3,337 | 247 | ||
Anthem, Inc. | 17,200 | 3,060 | Pfizer, Inc. | 244,546 | 8,295 | ||
AquaBounty Technologies, Inc.(Æ) | 14,350 | 112 | Premier, Inc. Class A(Æ) | 3,460 | 117 | ||
Baxter International, Inc. | 30,897 | 1,720 | Qiagen NV(Æ) | 8,989 | 271 | ||
Becton Dickinson and Co. | 6,046 | 1,130 | Quest Diagnostics, Inc. | 13,068 | 1,379 | ||
Biogen, Inc.(Æ) | 5,899 | 1,600 | Quintiles Transnational Holdings, Inc.(Æ) | 5,136 | 433 | ||
BioMarin Pharmaceutical, Inc.(Æ) | 5,821 | 558 | Regeneron Pharmaceuticals, Inc.(Æ) | 2,946 | 1,145 | ||
Bio-Rad Laboratories, Inc. Class A(Æ) | 1,042 | 227 | ResMed, Inc. | 7,778 | 529 | ||
Bioverativ, Inc.(Æ) | 5,069 | 298 | Seattle Genetics, Inc.(Æ) | 7,788 | 532 | ||
Boston Scientific Corp.(Æ) | 29,557 | 780 | Stryker Corp. | 12,612 | 1,720 | ||
Bristol-Myers Squibb Co. | 43,762 | 2,453 | Teleflex, Inc. | 2,302 | 476 | ||
Tenet Healthcare Corp.(Æ) | 527 | 8 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 717
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Thermo Fisher Scientific, Inc. | 11,462 | 1,895 | Newmont Mining Corp. | 11,168 | 378 | ||
United Therapeutics Corp.(Æ) | 6,926 | 871 | Nucor Corp. | 3,091 | 190 | ||
UnitedHealth Group, Inc. | 41,433 | 7,246 | Owens Corning | 5,741 | 349 | ||
Universal Health Services, Inc. Class B | 4,789 | 578 | Owens-Illinois, Inc.(Æ) | 7,496 | 164 | ||
Varex Imaging Corp.(Æ) | 2,101 | 71 | Packaging Corp. of America | 5,016 | 495 | ||
Varian Medical Systems, Inc.(Æ) | 5,253 | 477 | Platform Specialty Products Corp.(Æ) | 4,352 | 62 | ||
VCA, Inc.(Æ) | 2,084 | 191 | PPG Industries, Inc. | 11,343 | 1,246 | ||
Veeva Systems, Inc. Class A(Æ) | 2,201 | 118 | Praxair, Inc. | 8,472 | 1,059 | ||
Vertex Pharmaceuticals, Inc.(Æ) | 6,246 | 739 | Reliance Steel & Aluminum Co. | 6,592 | 520 | ||
VWR Corp.(Æ) | 2,823 | 80 | Royal Gold, Inc. | 319 | 23 | ||
WellCare Health Plans, Inc.(Æ) | 327 | 50 | RPM International, Inc. | 3,950 | 208 | ||
West Pharmaceutical Services, Inc. | 1,176 | 108 | Sealed Air Corp. | 4,577 | 201 | ||
Zimmer Biomet Holdings, Inc. | 2,561 | 306 | Sherwin-Williams Co. (The) | 2,418 | 809 | ||
Zoetis, Inc. Class A | 8,455 | 474 | Silgan Holdings, Inc. | 3,232 | 196 | ||
120,347 | Sonoco Products Co. | 5,364 | 281 | ||||
Southern Copper Corp. | 3,562 | 126 | |||||
Materials and Processing - 3.0% | Steel Dynamics, Inc. | 7,958 | 288 | ||||
Acuity Brands, Inc. | 1,302 | 229 | Tahoe Resources, Inc. | 4,879 | 39 | ||
AdvanSix, Inc.(Æ) | 923 | 25 | Timken Co. (The) | 3,435 | 166 | ||
Air Products & Chemicals, Inc. | 6,392 | 898 | United States Steel Corp. | 4,864 | 109 | ||
Albemarle Corp. | 3,925 | 427 | USG Corp.(Æ) | 1,600 | 48 | ||
Alcoa Corp. | 2,549 | 86 | Valmont Industries, Inc. | 1,665 | 254 | ||
AptarGroup, Inc. | 2,086 | 167 | Valspar Corp. | 3,492 | 393 | ||
Arconic, Inc. | 9,450 | 258 | Versum Materials, Inc. | 4,059 | 130 | ||
Ashland Global Holdings, Inc. | 2,354 | 291 | Vulcan Materials Co. | 1,365 | 165 | ||
Axalta Coating Systems, Ltd.(Æ) | 2,668 | 84 | Watsco, Inc. | 2,102 | 292 | ||
Ball Corp. | 3,799 | 292 | Westlake Chemical Corp. | 1,598 | 99 | ||
Bemis Co., Inc. | 6,242 | 280 | WestRock Co. | 14,753 | 790 | ||
Berry Plastics Group, Inc.(Æ) | 499 | 25 | WR Grace & Co. | 518 | 36 | ||
Cabot Corp. | 5,114 | 308 | 30,544 | ||||
Celanese Corp. Class A | 518 | 45 | |||||
CF Industries Holdings, Inc. | 5,795 | 155 | Producer Durables - 11.2% | ||||
Compass Minerals International, Inc. | 1,934 | 128 | 3M Co. | 19,415 | 3,802 | ||
Crown Holdings, Inc.(Æ) | 7,145 | 401 | Accenture PLC Class A | 23,943 | 2,904 | ||
Domtar Corp. | 3,581 | 142 | Adient PLC | 3,608 | 265 | ||
Dow Chemical Co. (The) | 67,662 | 4,249 | AECOM(Æ) | 3,042 | 104 | ||
Eagle Materials, Inc. | 816 | 78 | AGCO Corp. | 7,654 | 490 | ||
Eastman Chemical Co. | 7,617 | 607 | Air Lease Corp. Class A | 3,433 | 131 | ||
Ecolab, Inc. | 10,082 | 1,301 | Alaska Air Group, Inc. | 6,391 | 544 | ||
EI du Pont de Nemours & Co. | 23,229 | 1,853 | Allegion PLC | 1,017 | 80 | ||
Fastenal Co. | 13,384 | 598 | Allison Transmission Holdings, Inc. Class A | 1,526 | 59 | ||
FMC Corp. | 3,385 | 248 | American Airlines Group, Inc. | 7,183 | 306 | ||
Freeport-McMoRan, Inc.(Æ) | 20,229 | 258 | Ametek, Inc. | 10,901 | 624 | ||
Graphic Packaging Holding Co. | 18,117 | 246 | AO Smith Corp. | 6,679 | 360 | ||
Hexcel Corp. | 8,716 | 451 | Automatic Data Processing, Inc. | 19,730 | 2,062 | ||
Huntsman Corp. | 8,621 | 214 | Avery Dennison Corp. | 5,475 | 456 | ||
Ingersoll-Rand PLC | 17,898 | 1,588 | Babcock & Wilcox Co. (The) Class W(Æ) | 3,631 | 179 | ||
International Flavors & Fragrances, Inc. | 3,794 | 526 | Boeing Co. (The) | 24,457 | 4,520 | ||
International Paper Co. | 4,254 | 230 | Carlisle Cos., Inc. | 3,407 | 345 | ||
ITT, Inc. | 3,653 | 154 | Caterpillar, Inc. | 18,319 | 1,873 | ||
Lennox International, Inc. | 1,125 | 186 | CH Robinson Worldwide, Inc. | 5,835 | 424 | ||
LyondellBasell Industries Class A | 23,778 | 2,015 | Chicago Bridge & Iron Co. | 5,060 | 152 | ||
Martin Marietta Materials, Inc. | 1,178 | 259 | Cintas Corp. | 8,158 | 999 | ||
Masco Corp. | 6,075 | 225 | Clean Harbors, Inc.(Æ) | 844 | 49 | ||
Monsanto Co. | 11,219 | 1,308 | Colfax Corp.(Æ) | 2,086 | 84 | ||
Mosaic Co. (The) | 10,476 | 282 | Copa Holdings SA Class A | 4,495 | 523 | ||
NewMarket Corp. | 661 | 311 | Copart, Inc.(Æ) | 12,908 | 399 |
See accompanying notes which are an integral part of the financial statements.
718 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
CoStar Group, Inc.(Æ) | 964 | 232 | Oshkosh Corp. | 7,501 | 521 | ||
Covanta Holding Corp. | 2,768 | 40 | PACCAR, Inc. | 4,962 | 331 | ||
Crane Co. | 5,187 | 415 | Parker-Hannifin Corp. | 5,202 | 837 | ||
CSX Corp. | 43,069 | 2,190 | Paychex, Inc. | 18,265 | 1,083 | ||
Cummins, Inc. | 18,356 | 2,771 | Pentair PLC | 3,471 | 224 | ||
Danaher Corp. | 38,190 | 3,182 | Pitney Bowes, Inc. | 12,576 | 167 | ||
Deere & Co. | 12,385 | 1,382 | Quanta Services, Inc.(Æ) | 15,580 | 552 | ||
Delphi Automotive PLC | 10,737 | 863 | Raytheon Co. | 16,008 | 2,485 | ||
Delta Air Lines, Inc. | 51,818 | 2,355 | Regal Beloit Corp. | 1,589 | 125 | ||
Donaldson Co., Inc. | 7,890 | 365 | Republic Services, Inc. Class A | 12,922 | 814 | ||
Dover Corp. | 9,979 | 787 | Robert Half International, Inc. | 12,860 | 592 | ||
Eaton Corp. PLC | 32,713 | 2,474 | Rockwell Automation, Inc. | 6,096 | 959 | ||
Emerson Electric Co. | 26,594 | 1,603 | Rockwell Collins, Inc. | 6,671 | 694 | ||
Expeditors International of Washington, Inc. | 5,289 | 297 | Rollins, Inc. | 7,762 | 301 | ||
FedEx Corp. | 6,153 | 1,167 | Roper Technologies, Inc. | 4,752 | 1,039 | ||
Flir Systems, Inc. | 9,726 | 357 | RR Donnelley & Sons Co. | 2,061 | 26 | ||
Fluor Corp. | 14,247 | 731 | Ryder System, Inc. | 2,955 | 201 | ||
Fortive Corp. | 17,853 | 1,129 | Snap-on, Inc. | 2,939 | 492 | ||
General Dynamics Corp. | 12,705 | 2,462 | Southwest Airlines Co. | 26,276 | 1,477 | ||
General Electric Co. | 326,181 | 9,456 | Spirit AeroSystems Holdings, Inc. Class A | 8,735 | 499 | ||
Genesee & Wyoming, Inc. Class A(Æ) | 2,639 | 179 | Spirit Airlines, Inc.(Æ) | 8,095 | 464 | ||
Genpact, Ltd. | 11,557 | 282 | Stanley Black & Decker, Inc. | 10,819 | 1,473 | ||
Graco, Inc. | 2,703 | 292 | Stericycle, Inc.(Æ) | 5,791 | 494 | ||
HD Supply Holdings, Inc.(Æ) | 7,172 | 289 | Terex Corp. | 5,286 | 185 | ||
HEICO Corp. | 351 | 25 | Textron, Inc. | 13,313 | 621 | ||
Hertz Global Holdings, Inc.(Æ) | 4,438 | 73 | Toro Co. (The) | 6,517 | 423 | ||
Hertz Global Holdings, Inc. Class W(Æ) | 1,479 | 67 | TransDigm Group, Inc. | 2,319 | 572 | ||
Honeywell International, Inc. | 25,497 | 3,344 | Trimble Navigation, Ltd.(Æ) | 5,243 | 186 | ||
Hubbell, Inc. Class B | 1,791 | 203 | Trinity Industries, Inc. | 9,009 | 242 | ||
Huntington Ingalls Industries, Inc. | 1,251 | 251 | Union Pacific Corp. | 22,982 | 2,573 | ||
IDEX Corp. | 3,721 | 390 | United Continental Holdings, Inc.(Æ) | 23,550 | 1,654 | ||
Illinois Tool Works, Inc. | 14,188 | 1,959 | United Parcel Service, Inc. Class B | 16,902 | 1,816 | ||
Jacobs Engineering Group, Inc. | 4,368 | 240 | United Rentals, Inc.(Æ) | 6,662 | 731 | ||
JB Hunt Transport Services, Inc. | 5,263 | 472 | United Technologies Corp. | 42,718 | 5,083 | ||
JetBlue Airways Corp.(Æ) | 31,839 | 695 | Verisk Analytics, Inc. Class A(Æ) | 6,557 | 543 | ||
Johnson Controls International PLC | 44,369 | 1,844 | Wabtec Corp. | 4,126 | 346 | ||
Kansas City Southern | 5,908 | 532 | Waste Management, Inc. | 20,466 | 1,490 | ||
KBR, Inc. | 6,008 | 84 | Waters Corp.(Æ) | 4,530 | 770 | ||
Keysight Technologies, Inc.(Æ) | 2,835 | 106 | Welbilt, Inc.(Æ) | 2,169 | 45 | ||
Kirby Corp.(Æ) | 4,932 | 348 | WESCO International, Inc.(Æ) | 3,723 | 227 | ||
L3 Technologies, Inc. | 7,207 | 1,238 | WW Grainger, Inc. | 4,016 | 774 | ||
Lamb Weston Holdings, Inc. | 3,340 | 139 | Xerox Corp. | 69,014 | 496 | ||
Landstar System, Inc. | 1,527 | 131 | Xylem, Inc. | 7,747 | 398 | ||
Lincoln Electric Holdings, Inc. | 3,807 | 339 | Zebra Technologies Corp. Class A(Æ) | 981 | 93 | ||
Lockheed Martin Corp. | 7,545 | 2,033 | 115,886 | ||||
LSC Communications, Inc. | 2,693 | 70 | |||||
Macquarie Infrastructure Corp. | 473 | 39 | Technology - 17.7% | ||||
ManpowerGroup, Inc. | 8,185 | 827 | Activision Blizzard, Inc. | 17,238 | 901 | ||
McGraw Hill Financial, Inc. | 9,369 | 1,257 | Adobe Systems, Inc.(Æ) | 18,092 | 2,420 | ||
Mettler-Toledo International, Inc.(Æ) | 2,215 | 1,137 | Akamai Technologies, Inc.(Æ) | 7,381 | 450 | ||
Middleby Corp.(Æ) | 640 | 87 | Alphabet, Inc. Class A(Æ) | 12,663 | 11,707 | ||
MSC Industrial Direct Co., Inc. Class A | 3,218 | 288 | Alphabet, Inc. Class C(Æ) | 10,892 | 9,868 | ||
National Instruments Corp. | 2,557 | 89 | Amdocs, Ltd. | 19,645 | 1,203 | ||
Nordson Corp. | 3,200 | 401 | Amphenol Corp. Class A | 19,001 | 1,374 | ||
Norfolk Southern Corp. | 15,907 | 1,869 | Analog Devices, Inc. | 16,925 | 1,290 | ||
Northrop Grumman Corp. | 9,408 | 2,314 | Ansys, Inc.(Æ) | 5,654 | 623 | ||
Old Dominion Freight Line, Inc. | 4,303 | 381 | Apple, Inc. | 246,166 | 35,362 | ||
Orbital ATK, Inc. | 4,664 | 462 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 719
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||
Principal | Fair | Principal | Fair | ||||
Amount ($) or | Value | Amount ($) or | Value | ||||
Shares | $ | Shares | $ | ||||
Applied Materials, Inc. | 30,026 | 1,219 | Microchip Technology, Inc. | 5,335 | 403 | ||
Arista Networks, Inc.(Æ) | 788 | 110 | Micron Technology, Inc.(Æ) | 53,206 | 1,472 | ||
ARRIS International PLC(Æ) | 2,868 | 75 | Microsoft Corp. | 313,896 | 21,489 | ||
Arrow Electronics, Inc.(Æ) | 10,204 | 719 | Motorola Solutions, Inc. | 3,709 | 319 | ||
Autodesk, Inc.(Æ) | 5,412 | 488 | NCR Corp.(Æ) | 7,718 | 318 | ||
Avnet, Inc. | 12,380 | 479 | NetApp, Inc. | 12,402 | 494 | ||
Bio Techne Corp. | 2,205 | 236 | Nuance Communications, Inc.(Æ) | 1,517 | 27 | ||
Black Knight Financial Services, Inc. Class | NVIDIA Corp. | 18,353 | 1,914 | ||||
A(Æ) | 2,131 | 88 | ON Semiconductor Corp.(Æ) | 14,903 | 211 | ||
Broadcom, Ltd. | 10,233 | 2,260 | Oracle Corp. | 140,446 | 6,314 | ||
Brocade Communications Systems, Inc. | 47,264 | 594 | Palo Alto Networks, Inc.(Æ) | 2,028 | 220 | ||
CA, Inc. | 40,154 | 1,318 | PTC, Inc.(Æ) | 1,378 | 75 | ||
Cadence Design Systems, Inc.(Æ) | 16,341 | 532 | Qorvo, Inc.(Æ) | 1,416 | 96 | ||
CDK Global Inc. | 3,523 | 229 | QUALCOMM, Inc. | 88,741 | 4,769 | ||
CDW Corp. | 2,657 | 157 | Red Hat, Inc.(Æ) | 5,588 | 492 | ||
Cisco Systems, Inc. | 287,196 | 9,785 | Sabre Corp. | 1,873 | 44 | ||
Citrix Systems, Inc.(Æ) | 4,144 | 335 | Salesforce.com, Inc.(Æ) | 8,419 | 725 | ||
Cognex Corp. | 2,796 | 239 | ServiceNow, Inc.(Æ) | 6,142 | 580 | ||
Cognizant Technology Solutions Corp. Class | Skyworks Solutions, Inc. | 6,559 | 654 | ||||
A | 19,433 | 1,170 | Splunk, Inc.(Æ) | 2,667 | 172 | ||
CommerceHub, Inc.(Æ) | 762 | 12 | SS&C Technologies Holdings, Inc. | 5,198 | 191 | ||
CommScope Holding Co., Inc.(Æ) | 1,833 | 77 | Symantec Corp. | 29,193 | 923 | ||
Conduent, Inc.(Æ) | 9,471 | 155 | Synopsys, Inc.(Æ) | 7,835 | 577 | ||
Corning, Inc. | 77,129 | 2,225 | Tableau Software, Inc. Class A(Æ) | 658 | 35 | ||
Cree, Inc.(Æ) | 4,666 | 102 | Teradata Corp.(Æ) | 4,895 | 143 | ||
CSRA, Inc. | 6,402 | 186 | Teradyne, Inc. | 5,489 | 194 | ||
Cypress Semiconductor Corp. | 8,377 | 117 | Texas Instruments, Inc. | 42,025 | 3,328 | ||
Dell Technologies, Inc. Class V(Æ) | 3,941 | 265 | Twitter, Inc.(Æ) | 6,466 | 107 | ||
Dolby Laboratories, Inc. Class A | 5,101 | 269 | Tyler Technologies, Inc.(Æ) | 140 | 23 | ||
Donnelley Financial Solutions, Inc.(Æ) | 773 | 17 | Ultimate Software Group, Inc.(Æ) | 742 | 150 | ||
DST Systems, Inc. | 1,724 | 212 | VeriSign, Inc.(Æ) | 1,938 | 172 | ||
DXC Technology Co. | 13,840 | 1,043 | VMware, Inc. Class A(Æ) | 3,936 | 371 | ||
EchoStar Corp. Class A(Æ) | 1,406 | 81 | Western Digital Corp. | 21,146 | 1,884 | ||
Electronic Arts, Inc.(Æ) | 11,019 | 1,045 | Workday, Inc. Class A(Æ) | 1,832 | 160 | ||
F5 Networks, Inc.(Æ) | 2,768 | 357 | Xilinx, Inc. | 10,719 | 677 | ||
Facebook, Inc. Class A(Æ) | 80,894 | 12,154 | Yahoo!, Inc.(Æ) | 29,509 | 1,423 | ||
FireEye, Inc.(Æ) | 3,231 | 40 | Yelp, Inc. Class A(Æ) | 1,086 | 38 | ||
Fortinet, Inc.(Æ) | 3,096 | 121 | Zynga, Inc. Class A(Æ) | 21,456 | 62 | ||
Gartner, Inc.(Æ) | 2,372 | 271 | 182,136 | ||||
Groupon, Inc. Class A(Æ) | 10,977 | 43 | |||||
Harris Corp. | 2,774 | 310 | Utilities - 5.2% | ||||
Hewlett Packard Enterprise Co. | 91,863 | 1,711 | AES Corp. | 37,025 | 419 | ||
HP, Inc. | 172,349 | 3,244 | Alliant Energy Corp. | 6,968 | 274 | ||
Intel Corp. | 254,490 | 9,200 | Ameren Corp. | 18,138 | 992 | ||
International Business Machines Corp. | 42,085 | 6,746 | American Electric Power Co., Inc. | 20,704 | 1,404 | ||
Intuit, Inc. | 4,680 | 586 | American Water Works Co., Inc. | 8,313 | 663 | ||
IPG Photonics Corp.(Æ) | 834 | 105 | Aqua America, Inc. | 8,922 | 295 | ||
Jabil Circuit, Inc. | 12,303 | 357 | AT&T, Inc. | 268,292 | 10,632 | ||
Juniper Networks, Inc. | 34,901 | 1,050 | Atmos Energy Corp. | 2,694 | 218 | ||
KLA-Tencor Corp. | 3,444 | 338 | Avangrid, Inc. | 2,434 | 106 | ||
Lam Research Corp. | 12,675 | 1,836 | Calpine Corp.(Æ) | 17,141 | 175 | ||
Leidos Holdings, Inc. | 11,565 | 609 | CenterPoint Energy, Inc. | 13,675 | 390 | ||
Liberty Expedia Holdings, Inc. Class A(Æ) | 1,525 | 74 | CenturyLink, Inc. | 33,105 | 850 | ||
Liberty Interactive Corp.(Æ) | 2,288 | 123 | Cheniere Energy, Inc.(Æ) | 2,644 | 120 | ||
LogMeIn, Inc. | 578 | 65 | CMS Energy Corp. | 9,674 | 439 | ||
Manhattan Associates, Inc.(Æ) | 328 | 15 | Consolidated Edison, Inc. | 17,216 | 1,365 | ||
Marvell Technology Group, Ltd. | 21,033 | 316 | Dominion Resources, Inc. | 17,929 | 1,388 | ||
Maxim Integrated Products, Inc. | 4,110 | 182 |
See accompanying notes which are an integral part of the financial statements.
720 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Principal | Fair | |||
Amount ($) or | Value | |||
Shares | $ | |||
DTE Energy Co. | 10,018 | 1,048 | ||
Duke Energy Corp. | 35,522 | 2,931 | ||
Edison International | 7,951 | 636 | ||
Entergy Corp. | 10,000 | 763 | ||
Eversource Energy | 18,388 | 1,092 | ||
Exelon Corp. | 61,188 | 2,119 | ||
FirstEnergy Corp. | 36,547 | 1,094 | ||
Frontier Communications Corp. | 35,220 | 66 | ||
Great Plains Energy, Inc. | 13,294 | 393 | ||
Hawaiian Electric Industries, Inc. | 8,535 | 286 | ||
Level 3 Communications, Inc.(Æ) | 4,189 | 255 | ||
MDU Resources Group, Inc. | 1,352 | 36 | ||
National Fuel Gas Co. | 2,487 | 138 | ||
NextEra Energy, Inc. | 16,764 | 2,239 | ||
NiSource, Inc. | 8,011 | 194 | ||
NRG Energy, Inc. | 3,145 | 53 | ||
OGE Energy Corp. | 3,684 | 128 | ||
PG&E Corp. | 14,738 | 988 | ||
Pinnacle West Capital Corp. | 2,104 | 179 | ||
PPL Corp. | 25,325 | 965 | ||
Public Service Enterprise Group, Inc. | 29,345 | 1,293 | ||
SCANA Corp. | 9,769 | 648 | ||
Sempra Energy | 10,137 | 1,146 | ||
Southern Co. (The) | 52,092 | 2,594 | ||
Sprint Corp.(Æ) | 41,313 | 373 | ||
Telephone & Data Systems, Inc. | 5,211 | 143 | ||
T-Mobile US, Inc.(Æ) | 10,053 | 676 | ||
UGI Corp. | 17,747 | 890 | ||
US Cellular Corp.(Æ) | 2,005 | 79 | ||
Vectren Corp. | 6,543 | 389 | ||
Verizon Communications, Inc. | 171,243 | 7,862 | ||
WEC Energy Group, Inc. | 15,644 | 947 | ||
Westar Energy, Inc. Class A | 5,852 | 305 | ||
Xcel Energy, Inc. | 29,528 | 1,330 | ||
54,008 | ||||
Total Common Stocks | ||||
(cost $872,808) | 970,030 | |||
Short-Term Investments - 5.5% | ||||
U.S. Cash Management Fund | 57,364,097 | (8) | 57,376 | |
Total Short-Term Investments | ||||
(cost $57,375) | 57,376 | |||
Total Investments 99.6% | ||||
(identified cost $930,183) | 1,027,406 | |||
Other Assets and Liabilities, Net | ||||
- 0.4% | 3,611 | |||
Net Assets - 100.0% | 1,031,017 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 721
Russell Investment Company
Select U.S. Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | ||||||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Number of | Notional | Expiration | (Depreciation) | |||||||||||||
Contracts | Amount | Date | $ | |||||||||||||
Long Positions | ||||||||||||||||
S&P 500 E-Mini Index Futures | 463 | USD | 55,109 | 06/17 | 291 | |||||||||||
S&P Mid 400 E-Mini Index Futures | 34 | USD | 5,882 | 06/17 | 72 | |||||||||||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 363 | |||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 131,118 | $ | — | $ | 2 | $ | — | $ | 131,120 | 12.7 | |||||
Consumer Staples | 70,464 | — | 2 | — | 70,466 | 6.8 | ||||||||||
Energy | 54,448 | — | — | — | 54,448 | 5.3 | ||||||||||
Financial Services | 211,075 | — | — | — | 211,075 | 20.5 | ||||||||||
Health Care | 120,347 | — | — | — | 120,347 | 11.7 | ||||||||||
Materials and Processing | 30,544 | — | — | — | 30,544 | 3.0 | ||||||||||
Producer Durables | 115,886 | — | — | — | 115,886 | 11.2 | ||||||||||
Technology | 182,136 | — | — | — | 182,136 | 17.7 | ||||||||||
Utilities | 54,008 | — | — | — | 54,008 | 5.2 | ||||||||||
Short-Term Investments | — | — | — | 57,376 | 57,376 | 5.5 | ||||||||||
Total Investments | 970,026 | — | 4 | 57,376 | 1,027,406 | 99.6 | ||||||||||
Other Assets and Liabilities, Net | 0.4 | |||||||||||||||
100.0 | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 363 | — | — | — | 363 | —* | ||||||||||
A | ||||||||||||||||
Total Other Financial Instruments** | $ | 363 | $ | — | $ | — | $ | — | $ | 363 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
722 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Assets and Liabilities - Assets | |||
Variation margin on futures contracts* | $ | 363 | |
Equity | |||
Derivatives not accounted for as hedging instruments | Contracts | ||
Location: Statement of Operations - Net realized gain (loss) | |||
Futures contracts | $ | 2,688 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||
Futures contracts | $ | 779 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 723
Russell Investment Company
Select U.S. Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 190 | $ | — $ | 190 | |||
Total Financial and Derivative Liabilities | 190 | — | 190 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (190 | ) | — | (190 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | — | $ | — $ | — |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
724 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 930,183 |
Investments, at fair value(>) | 1,027,406 | |
Cash (restricted)(a) | 2,900 | |
Foreign currency holdings(^) | 61 | |
Receivables: | ||
Dividends and interest | 836 | |
Dividends from affiliated funds | 62 | |
Fund shares sold | 1,295 | |
Prepaid expenses | 9 | |
Total assets | 1,032,569 | |
Liabilities | ||
Payables: | ||
Investments purchased | 39 | |
Fund shares redeemed | 830 | |
Accrued fees to affiliates | 342 | |
Other accrued expenses | 151 | |
Variation margin on futures contracts | 190 | |
Total liabilities | 1,552 | |
Net Assets | $ | 1,031,017 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 725
Russell Investment Company
Select U.S. Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 568 | |
Accumulated net realized gain (loss) | 1,695 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 97,223 | ||
Futures contracts | 363 | ||
Foreign currency-related transactions | (3 | ) | |
Shares of beneficial interest | 836 | ||
Additional paid-in capital | 930,335 | ||
Net Assets | $ | 1,031,017 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R6(#) | $ | 12.34 | |
Class R6 — Net assets | $ | 127,247 | |
Class R6 — Shares outstanding ($.01 par value) | 10,309 | ||
Net asset value per share: Class S(#) | $ | 12.33 | |
Class S — Net assets | $ | 213,565,121 | |
Class S — Shares outstanding ($.01 par value) | 17,325,722 | ||
Net asset value per share: Class T(#) | $ | 12.35 | |
Class T — Net assets | $ | 3,958,198 | |
Class T — Shares outstanding ($.01 par value) | 320,608 | ||
Net asset value per share: Class Y(#) | $ | 12.34 | |
Class Y — Net assets | $ | 813,366,150 | |
Class Y — Shares outstanding ($.01 par value) | 65,921,733 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 64 | |
(>) Investments in affiliates, – U.S. Cash Management Fund | $ | 57,376 | |
(a) Cash Collateral for Futures | $ | 2,900 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
726 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 7,613 | |
Dividends from affiliated funds | 261 | ||
Total investment income | 7,874 | ||
Expenses | |||
Advisory fees | 1,230 | ||
Administrative fees | 198 | ||
Custodian fees | 67 | ||
Transfer agent fees - Class R6 | —** | ||
Transfer agent fees - Class S | 61 | ||
Transfer agent fees - Class T | 3 | ||
Transfer agent fees - Class Y | 17 | ||
Professional fees | 37 | ||
Registration fees | 51 | ||
Trustees’ fees | 12 | ||
Printing fees | 10 | ||
Miscellaneous | 10 | ||
Expenses before reductions | 1,696 | ||
Expense reductions | (108 | ) | |
Net expenses | 1,588 | ||
Net investment income (loss) | 6,286 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 4,206 | ||
Futures contracts | 2,688 | ||
Net realized gain (loss) | 6,894 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 83,603 | ||
Futures contracts | 779 | ||
Foreign currency-related transactions | (2 | ) | |
Net change in unrealized appreciation (depreciation) | 84,380 | ||
Net realized and unrealized gain (loss) | 91,274 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 97,560 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 727
Russell Investment Company
Select U.S. Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 6,286 | $ | 13,666 | ||
Net realized gain (loss) | 6,894 | (1,702 | ) | |||
Net change in unrealized appreciation (depreciation) | 84,380 | 20,527 | ||||
Net increase (decrease) in net assets from operations | 97,560 | 32,491 | ||||
Distributions | ||||||
From net investment income | ||||||
Class R6 | (1 | ) | (1 | ) | ||
Class S | (614 | ) | (85 | ) | ||
Class T | (27 | ) | (18 | ) | ||
Class Y | (5,835 | ) | (13,562 | ) | ||
From net realized gain | ||||||
Class S | — | (30 | ) | |||
Class T | — | (10 | ) | |||
Class Y | — | (8,012 | ) | |||
Net decrease in net assets from distributions | (6,477 | ) | (21,718 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 241,351 | (118,744 | ) | |||
Total Net Increase (Decrease) in Net Assets | 332,434 | (107,971 | ) | |||
Net Assets | ||||||
Beginning of period | 698,583 | 806,554 | ||||
End of period | $ | 1,031,017 | $ | 698,583 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 568 | $ | 759 |
See accompanying notes which are an integral part of the financial statements.
728 Select U.S. Equity Fund
Russell Investment Company
Select U.S. Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class R6 | ||||||||||||
Proceeds from shares sold | — | $ | — | 10 | $ | 100 | ||||||
Proceeds from reinvestment of distributions | —** | 1 | —** | 1 | ||||||||
Payments for shares redeemed | — | — | — | — | ||||||||
Net increase (decrease) | — | 1 | 10 | 101 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 16,956 | 208,438 | 525 | 5,598 | ||||||||
Proceeds from reinvestment of distributions | 50 | 613 | 11 | 115 | ||||||||
Payments for shares redeemed | (399 | ) | (4,829 | ) | (118 | ) | (1,265 | ) | ||||
Net increase (decrease) | 16,607 | 204,222 | 418 | 4,448 | ||||||||
Class T | ||||||||||||
Proceeds from shares sold | 263 | 3,108 | 42 | 439 | ||||||||
Proceeds from reinvestment of distributions | 2 | 27 | 3 | 27 | ||||||||
Payments for shares redeemed | (38 | ) | (470 | ) | (32 | ) | (326 | ) | ||||
Net increase (decrease) | 227 | 2,665 | 13 | 140 | ||||||||
Class Y | ||||||||||||
Proceeds from shares sold | 13,961 | 165,720 | 10,697 | 111,801 | ||||||||
Proceeds from reinvestment of distributions | 490 | 5,835 | 2,052 | 21,574 | ||||||||
Payments for shares redeemed | (11,654 | ) | (137,092 | ) | (24,342 | ) | (256,808 | ) | ||||
Net increase (decrease) | 2,797 | 34,463 | (11,593 | ) | (123,433 | ) | ||||||
Total increase (decrease) | 19,631 | $ | 241,351 | (11,152 | ) | $ | (118,744 | ) |
** Less than 500 shares.
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 729
Russell Investment Company
Select U.S. Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | $ | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Net | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Investment | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | Income (Loss)(a)(d) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class R6 | |||||||||||||||
April 30, 2017* | 10.93 | .09 | 1.41 | 1.50 | (.09 | ) | — | ||||||||
October 31, 2016(8) | 9.91 | .12 | 1.05 | 1.17 | (.15 | ) | — | ||||||||
Class S | |||||||||||||||
April 30, 2017* | 10.92 | .05 | 1.45 | 1.50 | (.09 | ) | — | ||||||||
October 31, 2016 | 10.73 | .17 | .31 | .48 | (.18 | ) | (.11 | ) | |||||||
October 31, 2015(5) | 10.61 | .12 | .09 | .21 | (.09 | ) | — | ||||||||
Class T | |||||||||||||||
April 30, 2017* | 10.93 | .08 | 1.43 | 1.51 | (.09 | ) | — | ||||||||
October 31, 2016 | 10.74 | .19 | .31 | .50 | (.20 | ) | (.11 | ) | |||||||
October 31, 2015(5) | 10.61 | .14 | .09 | .23 | (.10 | ) | — | ||||||||
Class Y | |||||||||||||||
April 30, 2017* | 10.92 | .09 | 1.42 | 1.51 | (.09 | ) | — | ||||||||
October 31, 2016 | 10.74 | .20 | .29 | .49 | (.20 | ) | (.11 | ) | |||||||
October 31, 2015 | 10.41 | .17 | .31 | .48 | (.14 | ) | (.01 | ) | |||||||
October 31, 2014(4) | 10.00 | .04 | .39 | .43 | (.02 | ) | — | ||||||||
See accompanying notes which are an integral part of the financial statements.
730 Select U.S. Equity Fund
% | % | % | ||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||
Total Distributions | Period | Return(b) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | ||||||||
(.09 | ) | 12.34 | 13.78 | 127 | .45 | .40 | 1.62 | 11 | ||||||||
(.15 | ) | 10.93 | 9.27 | 112 | .45 | .38 | 1.67 | 9 | ||||||||
(.09 | ) | 12.33 | 13.75 | 213,565 | .57 | .57 | .82 | 11 | ||||||||
(.29 | ) | 10.92 | 4.61 | 7,844 | .60 | .55 | 1.62 | 9 | ||||||||
(.09 | ) | 10.73 | 2.04 | 3,227 | .62 | .40 | 1.36 | 44 | ||||||||
(.09 | ) | 12.35 | 13.87 | 3,958 | .59 | .42 | 1.47 | 11 | ||||||||
(.31 | ) | 10.93 | 4.75 | 1,024 | .60 | .40 | 1.78 | 9 | ||||||||
(.10 | ) | 10.74 | 2.23 | 873 | .62 | .40 | 1.53 | 44 | ||||||||
(.09 | ) | 12.34 | 13.90 | 813,367 | .40 | .37 | 1.65 | 11 | ||||||||
(.31 | ) | 10.92 | 4.70 | 689,603 | .41 | .35 | 1.84 | 9 | ||||||||
(.15 | ) | 10.74 | 4.71 | 802,454 | .43 | .35 | 1.56 | 44 | ||||||||
(.02 | ) | 10.41 | 4.34 | 140,839 | .60 | .35 | 1.42 | 2 |
See accompanying notes which are an integral part of the financial statements.
Select U.S. Equity Fund 731
Russell Investment Company
Select U.S. Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 259,665 |
Administration fees | 40,673 | |
Transfer agent fees | 37,406 | |
Trustee fees | 3,961 | |
$ | 341,705 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | ||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||
U.S. Cash Management Fund | $ | 35,702 | $ | 365,339 | $ | 343,659 | $ | — | $ (6) | $ | 57,376 | $ | 261 | $ | — | ||
$ | 35,702 | $ | 365,339 | $ | 343,659 | $ | — | $ (6) | $ | 57,376 | $ | 261 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 933,385,542 | |||
Unrealized Appreciation | $ | 117,083,228 | |||
Unrealized Depreciation | (23,062,977 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 94,020,251 |
See accompanying notes which are an integral part of the financial statements.
732 Select U.S. Equity Fund
Russell Investment Company
Select International Equity Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, and (2) ongoing costs, including advisory and | would have been higher. | |||||
administrative fees; distribution (12b-1) and/or service fees; | Hypothetical | |||||
and other Fund expenses. The Example is intended to help | Performance (5% | |||||
you understand your ongoing costs (in dollars) of investing in | Actual | return before | ||||
the Fund and to compare these costs with the ongoing costs of | Class R6 | Performance | expenses) | |||
Beginning Account Value | ||||||
investing in other mutual funds. The Example is based on an | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
investment of $1,000 invested at the beginning of the period and | Ending Account Value | |||||
held for the entire period indicated, which for this Fund is from | April 30, 2017 | $ | 1,108.40 | $ | 1,022.36 | |
November 1, 2016 to April 30, 2017. | Expenses Paid During Period* | $ | 2.56 | $ | 2.46 | |
Actual Expenses | * Expenses are equal to the Fund's annualized expense ratio of 0.49% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
The information in the table under the heading “Actual | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
Performance” provides information about actual account values | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
and actual expenses. You may use the information in this column, | waivers and/or reimbursements, expenses would have been higher. | |||||
together with the amount you invested, to estimate the expenses | ||||||
Hypothetical | ||||||
that you paid over the period. Simply divide your account value by | Performance (5% | |||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Actual | return before | ||||
= 8.6), then multiply the result by the number in the first column | Class S | Performance | expenses) | |||
Beginning Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
the expenses you paid on your account during this period. | Ending Account Value | |||||
April 30, 2017 | $ | 1,108.40 | $ | 1,021.52 | ||
Hypothetical Example for Comparison Purposes | Expenses Paid During Period* | $ | 3.45 | $ | 3.31 | |
The information in the table under the heading “Hypothetical | ||||||
Performance (5% return before expenses)” provides information | * Expenses are equal to the Fund's annualized expense ratio of 0.66% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
about hypothetical account values and hypothetical expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
based on the Fund’s actual expense ratio and an assumed rate of | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
return of 5% per year before expenses, which is not the Fund’s | waivers and/or reimbursements, expenses would have been higher. | |||||
actual return. The hypothetical account values and expenses | ||||||
Hypothetical | ||||||
may not be used to estimate the actual ending account balance or | Performance (5% | |||||
expenses you paid for the period. You may use this information | Actual | return before | ||||
to compare the ongoing costs of investing in the Fund and other | Class T | Performance | expenses) | |||
funds. To do so, compare this 5% hypothetical example with the | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
5% hypothetical examples that appear in the shareholder reports | Ending Account Value | |||||
of other funds. | April 30, 2017 | $ | 1,108.90 | $ | 1,022.27 | |
Expenses Paid During Period* | $ | 2.67 | $ | 2.56 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.51% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Select International Equity Fund 733
Russell Investment Company
Select International Equity Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class Y | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,108.60 | $ | 1,022.51 | ||
Expenses Paid During Period* | $ | 2.40 | $ | 2.31 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.46% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
734 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||
Principal | Fair | Principal | Fair | ||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||
or Shares | $ | or Shares | $ | ||||||||
Common Stocks - 93.2% | Telstra Corp., Ltd. | 144,696 | 457 | ||||||||
Australia - 5.0% | TPG Telecom, Ltd. | 17,048 | 75 | ||||||||
Adelaide Brighton, Ltd. | 37,336 | 165 | Transurban Group - ADR(Æ) | 74,674 | 682 | ||||||
AGL Energy, Ltd. | 34,099 | 683 | Treasury Wine Estates, Ltd. | 62,501 | 562 | ||||||
Alumina, Ltd. | 55,352 | 76 | Vicinity Centres(ö) | 86,056 | 186 | ||||||
Amcor, Ltd. Class A | 22,514 | 265 | Vocus Group, Ltd. | 63,589 | 160 | ||||||
Ansell, Ltd. - GDR | 8,273 | 148 | Washington H Soul Pattinson & Co., Ltd. | 11,003 | 155 | ||||||
APA Group | 36,205 | 248 | Wesfarmers, Ltd.(Æ) | 47,287 | 1,523 | ||||||
Aristocrat Leisure, Ltd. | 36,524 | 537 | Westfield Corp.(ö) | 52,705 | 358 | ||||||
ASX, Ltd. - ADR | 15,085 | 572 | Westpac Banking Corp. | 139,987 | 3,667 | ||||||
AusNet Services(Æ) | 95,591 | 125 | Woodside Petroleum, Ltd. | 19,672 | 474 | ||||||
Australia & New Zealand Banking | Woolworths, Ltd. | 26,019 | 524 | ||||||||
Group, Ltd. - ADR | 145,287 | 3,556 | 40,513 | ||||||||
Bank of Queensland, Ltd. | 37,334 | 334 | |||||||||
Bendigo & Adelaide Bank, Ltd. | 71,383 | 657 | Austria - 0.6% | ||||||||
BHP Billiton, Ltd. - ADR | 118,217 | 2,111 | Erste Group Bank AG | 37,975 | 1,358 | ||||||
Boral, Ltd. | 134,394 | 619 | EVN AG | 13,173 | 174 | ||||||
Brambles, Ltd. | 39,547 | 306 | Mayr Melnhof Karton AG | 1,365 | 165 | ||||||
Challenger, Ltd. | 26,093 | 258 | OMV AG | 24,377 | 1,122 | ||||||
CIMIC Group, Ltd. | 10,730 | 298 | Raiffeisen Bank International AG(Æ) | 16,347 | 371 | ||||||
Coca-Cola Amatil, Ltd. | 32,508 | 228 | Strabag SE | 14,038 | 574 | ||||||
Cochlear, Ltd. | 4,566 | 478 | Telekom Austria AG - ADR | 26,681 | 187 | ||||||
Commonwealth Bank of Australia - ADR | 59,803 | 3,910 | Verbund AG Class A | 12,063 | 200 | ||||||
Computershare, Ltd. | 16,279 | 180 | Voestalpine AG | 18,914 | 791 | ||||||
Crown Resorts, Ltd. | 13,352 | 125 | 4,942 | ||||||||
CSL, Ltd. | 15,762 | 1,565 | |||||||||
Dexus Property Group(Æ)(ö) | 43,554 | 333 | Belgium - 1.0% | ||||||||
Domino's Pizza Enterprises, Ltd. | 3,610 | 165 | Ackermans & van Haaren NV | 1,450 | 237 | ||||||
Flight Centre, Ltd. | 5,799 | 137 | Ageas | 13,184 | 540 | ||||||
Fortescue Metals Group, Ltd. | 221,983 | 882 | Anheuser-Busch InBev SA | 25,357 | 2,864 | ||||||
Goodman Group(ö) | 68,750 | 417 | Bekaert SA | 3,640 | 183 | ||||||
GPT Group (The)(ö) | 75,931 | 298 | Colruyt SA | 9,453 | 485 | ||||||
Harvey Norman Holdings, Ltd. | 71,745 | 225 | D'ieteren SA | 4,604 | 225 | ||||||
Healthscope, Ltd. | 63,012 | 105 | Elia System Operator SA | 6,590 | 350 | ||||||
Incitec Pivot, Ltd. | 100,371 | 285 | Galapagos NV(Æ) | 1,097 | 96 | ||||||
LendLease Group | 75,838 | 910 | Groupe Bruxelles Lambert SA | 2,357 | 226 | ||||||
Macquarie Group, Ltd. | 17,814 | 1,237 | KBC Groep NV | 18,031 | 1,302 | ||||||
Magellan Financial Group, Ltd. - ADR | 6,105 | 108 | Sofina SA | 1,826 | 262 | ||||||
Mirvac Group(ö) | 198,221 | 337 | Solvay SA | 9,081 | 1,154 | ||||||
National Australia Bank, Ltd. - ADR | 116,756 | 2,966 | UCB SA | 4,770 | 372 | ||||||
Newcrest Mining, Ltd. | 33,543 | 536 | Umicore SA | 2,719 | 159 | ||||||
Origin Energy, Ltd.(Æ) | 46,164 | 248 | 8,455 | ||||||||
Qantas Airways, Ltd. | 105,118 | 334 | |||||||||
QBE Insurance Group, Ltd. | 49,443 | 476 | Canada - 7.2% | ||||||||
Ramsay Health Care, Ltd. | 6,151 | 330 | Agnico Eagle Mines, Ltd. | 5,904 | 282 | ||||||
REA Group, Ltd. | 2,694 | 124 | Agrium, Inc. | 3,078 | 289 | ||||||
Reece, Ltd. | 3,952 | 121 | Alimentation Couche-Tard, Inc. Class B | 15,862 | 730 | ||||||
Rio Tinto, Ltd. - ADR | 16,233 | 734 | AltaGas, Ltd. - ADR | 4,072 | 91 | ||||||
Santos, Ltd.(Æ) | 41,442 | 108 | Amaya, Inc.(Æ) | 4,943 | 88 | ||||||
Scentre Group(ö) | 154,912 | 500 | ARC Resources, Ltd. | 12,444 | 163 | ||||||
SEEK, Ltd. | 17,026 | 217 | Atco, Ltd. Class I | 8,762 | 319 | ||||||
Sonic Healthcare, Ltd. | 16,782 | 277 | Bank of Montreal | 43,861 | 3,106 | ||||||
South32, Ltd. | 291,782 | 607 | Bank of Nova Scotia (The) | 64,867 | 3,606 | ||||||
Stockland(ö) | 94,551 | 342 | Barrick Gold Corp. | 38,619 | 646 | ||||||
Suncorp Group, Ltd. | 42,549 | 439 | BCE, Inc. | 9,147 | 416 | ||||||
Sydney Airport | 41,946 | 216 | Bombardier, Inc. Class B(Æ) | 49,413 | 76 | ||||||
Tabcorp Holdings, Ltd. | 44,240 | 157 | Brookfield Asset Management, Inc. | ||||||||
Tatts Group, Ltd. | 23,372 | 75 | Class A | 62,297 | 2,303 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 735
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
CAE, Inc. | 14,419 | 220 | RioCan Real Estate Investment Trust(ö) | 12,390 | 235 | |||||
Canadian Imperial Bank of Commerce | 25,099 | 2,027 | Ritchie Bros Auctioneers, Inc. | 2,334 | 77 | |||||
Canadian National Railway Co. | 19,701 | 1,424 | Rogers Communications, Inc. Class A | 1,768 | 82 | |||||
Canadian Natural Resources, Ltd. | 17,925 | 571 | Rogers Communications, Inc. Class B | 5,311 | 244 | |||||
Canadian Pacific Railway, Ltd. | 2,906 | 445 | Royal Bank of Canada - GDR | 73,230 | 5,015 | |||||
Canadian Tire Corp., Ltd. Class A | 5,759 | 703 | Saputo, Inc. - ADR | 14,696 | 483 | |||||
CCL Industries, Inc. Class B | 1,118 | 259 | Seven Generations Energy, Ltd. Class | |||||||
Cenovus Energy, Inc. | 47,106 | 470 | A(Æ) | 9,901 | 175 | |||||
CGI Group, Inc. Class A(Æ) | 8,446 | 408 | SNC-Lavalin Group, Inc. | 5,932 | 239 | |||||
CI Financial Corp. | 9,296 | 182 | Stantec, Inc. | 2,797 | 72 | |||||
Constellation Software, Inc. | 605 | 277 | Sun Life Financial, Inc. | 45,746 | 1,616 | |||||
Detour Gold Corp.(Æ) | 10,500 | 133 | Suncor Energy, Inc. | 48,105 | 1,508 | |||||
DH Corp. | 4,309 | 80 | Teck Resources, Ltd. Class B | 44,173 | 916 | |||||
Dollarama, Inc. | 6,810 | 596 | TELUS Corp. | 2,203 | 73 | |||||
Eldorado Gold Corp. | 26,588 | 97 | TMX Group, Ltd. | 4,224 | 239 | |||||
Emera, Inc. | 8,399 | 291 | Toronto Dominion Bank | 95,350 | 4,487 | |||||
Empire Co., Ltd. Class A | 21,413 | 330 | Tourmaline Oil Corp.(Æ) | 6,726 | 132 | |||||
Enbridge Income Fund Holdings, Inc. | 12,442 | 305 | TransCanada Corp. | 23,147 | 1,075 | |||||
Enbridge, Inc. | 33,662 | 1,395 | Veresen, Inc. | 10,028 | 112 | |||||
Fairfax Financial Holdings, Ltd. | 827 | 378 | West Fraser Timber Co., Ltd. | 9,331 | 419 | |||||
First Quantum Minerals, Ltd. | 41,332 | 394 | WestJet Airlines, Ltd. | 15,059 | 249 | |||||
Fortis, Inc. | 29,230 | 951 | WSP Global, Inc. | 5,611 | 204 | |||||
Franco-Nevada Corp. Class T | 5,592 | 380 | Yamana Gold, Inc. | 152,555 | 410 | |||||
Genworth MI Canada, Inc. | 8,548 | 212 | 58,461 | |||||||
George Weston, Ltd. | 4,065 | 365 | ||||||||
Gildan Activewear, Inc. Class A | 5,791 | 162 | Cayman Islands - 0.1% | |||||||
Goldcorp, Inc. | 20,476 | 285 | AAC Technologies Holdings, Inc. | 30,000 | 439 | |||||
Great-West Lifeco, Inc. | 32,582 | 876 | China Mengniu Dairy Co., Ltd. | 36,000 | 70 | |||||
H&R Real Estate Investment Trust(ö) | 11,039 | 187 | Manchester United PLC Class A | 5,381 | 89 | |||||
Hudson's Bay Co. - ADR | 22,131 | 202 | 598 | |||||||
Husky Energy, Inc.(Æ) | 44,871 | 518 | ||||||||
Hydro One, Ltd.(Þ) | 4,723 | 83 | China - 0.0% | |||||||
IGM Financial, Inc. | 11,025 | 331 | Want Want China Holdings, Ltd. | 491,000 | 354 | |||||
Imperial Oil, Ltd. | 21,060 | 613 | ||||||||
Industrial Alliance Insurance & | Denmark - 1.4% | |||||||||
Financial Services, Inc. | 11,103 | 468 | AP Moller - Maersk A/S Class B | 387 | 669 | |||||
Intact Financial Corp. | 4,944 | 339 | Carlsberg A/S Class B | 3,111 | 310 | |||||
Inter Pipeline, Ltd. | 4,114 | 84 | Chr Hansen Holding A/S | 6,398 | 431 | |||||
International Petroleum Corp.(Æ) | 2,077 | 8 | Coloplast A/S Class B | 5,671 | 485 | |||||
Jean Coutu Group PJC, Inc. (The) Class | Danske Bank A/S | 55,555 | 2,017 | |||||||
A | 4,979 | 81 | DSV A/S | 14,151 | 789 | |||||
Keyera Corp. | 4,938 | 137 | Genmab A/S(Æ) | 4,693 | 934 | |||||
Kinross Gold Corp.(Æ) | 185,261 | 645 | GN Store Nord A/S | 5,996 | 156 | |||||
Linamar Corp. | 5,970 | 254 | H Lundbeck A/S | 3,820 | 196 | |||||
Loblaw Cos., Ltd. | 10,243 | 575 | ISS A/S | 7,466 | 310 | |||||
Lundin Mining Corp. | 60,978 | 325 | Jyske Bank A/S | 10,792 | 576 | |||||
Magna International, Inc. Class A | 39,865 | 1,665 | Nets A/S(Æ)(Þ) | 4,996 | 91 | |||||
Manulife Financial Corp. | 136,703 | 2,397 | Novo Nordisk A/S Class B | 40,122 | 1,561 | |||||
Metro, Inc. Class A | 22,005 | 754 | Novozymes A/S Class B | 7,231 | 312 | |||||
National Bank of Canada | 12,032 | 468 | Pandora A/S | 6,890 | 745 | |||||
Open Text Corp. | 13,260 | 460 | Rockwool International A/S Class B | 419 | 77 | |||||
Pembina Pipeline Corp. | 6,814 | 217 | TDC AS | 82,260 | 441 | |||||
Peyto Exploration & Development Corp. | 3,697 | 67 | Vestas Wind Systems A/S | 12,261 | 1,056 | |||||
Potash Corp. of Saskatchewan, Inc. | 25,984 | 438 | William Demant Holding A/S(Æ) | 4,116 | 94 | |||||
Power Corp. of Canada | 45,777 | 1,061 | 11,250 | |||||||
Power Financial Corp. | 34,550 | 878 | ||||||||
Progressive Waste Solutions, Ltd. | 3,418 | 314 | Finland - 1.1% | |||||||
Restaurant Brands International, Inc. | 8,888 | 499 | Amer Sports OYJ Class A(Æ) | 9,438 | 209 |
See accompanying notes which are an integral part of the financial statements.
736 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Cargotec OYJ Class B | 2,754 | 164 | L'Oreal SA | 9,047 | 1,802 | ||||
Elisa OYJ Class A | 7,636 | 260 | LVMH Moet Hennessy Louis Vuitton | ||||||
Fortum OYJ | 57,217 | 833 | SE - ADR | 9,746 | 2,408 | ||||
Huhtamaki OYJ | 5,881 | 228 | Natixis SA | 63,805 | 444 | ||||
Kesko OYJ Class B | 8,718 | 409 | Nexity SA | 2,284 | 124 | ||||
Kone OYJ Class B | 16,353 | 749 | Orange SA - ADR | 113,448 | 1,756 | ||||
Neste OYJ | 17,501 | 715 | Orpea | 1,688 | 173 | ||||
Nokia OYJ | 74,465 | 426 | Pernod Ricard SA | 8,711 | 1,090 | ||||
Nokian Renkaat OYJ | 4,317 | 186 | Peugeot SA | 33,991 | 712 | ||||
Orion OYJ Class B | 6,942 | 398 | Publicis Groupe SA - ADR | 11,993 | 866 | ||||
Orion OYJ Class A | 4,659 | 266 | Remy Cointreau SA | 770 | 78 | ||||
Outokumpu OYJ | 7,732 | 74 | Renault SA | 22,321 | 2,081 | ||||
Sampo OYJ Class A | 14,913 | 715 | Rexel SA Class H | 24,292 | 434 | ||||
Stora Enso OYJ Class R | 71,553 | 851 | Safran SA | 6,008 | 497 | ||||
UPM-Kymmene OYJ | 84,554 | 2,233 | Sanofi - ADR | 51,142 | 4,831 | ||||
8,716 | Sartorius Stedim Biotech | 6,290 | 422 | ||||||
Schneider Electric SE | 33,580 | 2,652 | |||||||
France - 8.9% | SCOR SE - ADR | 21,646 | 856 | ||||||
Air Liquide SA Class A | 8,509 | 1,025 | SEB SA | 1,845 | 298 | ||||
Airbus Group SE | 6,815 | 551 | Societe BIC SA | 2,208 | 248 | ||||
Alstom SA(Æ) | 13,744 | 436 | Societe Generale SA | 51,387 | 2,810 | ||||
Amundi SA(Þ) | 5,349 | 352 | Sodexo SA | 6,311 | 802 | ||||
Arkema SA | 8,995 | 952 | Sopra Steria Group | 1,699 | 255 | ||||
Atos SE | 5,434 | 712 | SPIE SA | 4,803 | 133 | ||||
AXA SA | 124,162 | 3,315 | Suez Environnement Co. | 32,022 | 526 | ||||
BioMerieux | 1,601 | 320 | Technicolor SA | 15,763 | 80 | ||||
BNP Paribas SA | 65,742 | 4,638 | Teleperformance - GDR | 4,758 | 598 | ||||
Bollore SA | 105,122 | 428 | Thales SA | 10,245 | 1,077 | ||||
Bouygues SA - ADR | 11,972 | 503 | Total SA | 120,012 | 6,152 | ||||
Capgemini SA | 9,454 | 947 | UBISOFT Entertainment(Æ) | 2,086 | 99 | ||||
Carrefour SA | 47,723 | 1,125 | Unibail-Rodamco SE(ö) | 2,733 | 671 | ||||
Casino Guichard Perrachon SA | 5,622 | 339 | Valeo SA | 13,510 | 971 | ||||
Christian Dior SE | 3,566 | 980 | Veolia Environnement SA | 36,139 | 687 | ||||
Cie de Saint-Gobain | 45,003 | 2,429 | Vicat SA | 2,207 | 157 | ||||
Cie Plastic Omnium SA | 2,302 | 90 | Vinci SA | 28,228 | 2,405 | ||||
CNP Assurances | 11,230 | 234 | Vivendi SA - ADR | 52,993 | 1,051 | ||||
Credit Agricole SA | 112,712 | 1,675 | Worldline SA(Æ)(Þ) | 5,717 | 190 | ||||
Danone SA | 18,202 | 1,272 | Zodiac Aerospace | 5,487 | 133 | ||||
Dassault Systemes | 12,663 | 1,131 | 72,113 | ||||||
Edenred | 4,295 | 110 | |||||||
Eiffage SA | 11,742 | 995 | Germany - 7.5% | ||||||
Electricite de France SA | 29,485 | 246 | adidas AG | 11,364 | 2,277 | ||||
Engie SA | 107,228 | 1,512 | Allianz SE | 26,984 | 5,138 | ||||
Essilor International SA | 9,796 | 1,269 | BASF SE | 40,091 | 3,907 | ||||
Euler Hermes Group | 820 | 80 | Bayer AG | 33,096 | 4,095 | ||||
Eurazeo SA | 3,675 | 249 | Bayerische Motoren Werke AG | 22,430 | 2,142 | ||||
Eutelsat Communications SA | 10,769 | 255 | Beiersdorf AG | 5,236 | 521 | ||||
Faurecia | 6,841 | 334 | Bilfinger SE | 2,165 | 94 | ||||
Financiere de L'Odet | 84 | 72 | Brenntag AG | 3,005 | 178 | ||||
Gecina SA(ö) | 1,823 | 259 | Carl Zeiss Meditec AG | 1,768 | 80 | ||||
Havas SA | 10,497 | 97 | Commerzbank AG(Æ) | 84,811 | 831 | ||||
Iliad SA | 787 | 191 | Continental AG | 4,773 | 1,068 | ||||
Ingenico Group SA | 3,030 | 275 | Covestro AG(Þ) | 3,911 | 305 | ||||
Ipsen SA | 3,088 | 359 | Daimler AG | 52,091 | 3,879 | ||||
Kering | 3,559 | 1,104 | Deutsche Bank AG | 88,767 | 1,598 | ||||
Klepierre - GDR(ö) | 2,580 | 101 | Deutsche Boerse AG | 6,811 | 667 | ||||
Korian SA Class B | 2,927 | 94 | Deutsche Lufthansa AG | 31,072 | 536 | ||||
Legrand SA - ADR | 7,543 | 488 | Deutsche Post AG | 56,328 | 2,025 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 737
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Deutsche Telekom AG | 135,806 | 2,382 | Hang Seng Bank, Ltd. | 15,000 | 304 | |||||
Deutsche Wohnen AG | 19,167 | 655 | Henderson Land Development Co., Ltd. | 126,070 | 798 | |||||
Duerr AG | 965 | 96 | Hong Kong & China Gas Co., Ltd. | 136,000 | 272 | |||||
E.ON SE | 46,672 | 364 | Hong Kong Exchanges & Clearing, Ltd. | 29,500 | 726 | |||||
Evonik Industries AG | 9,626 | 321 | Hongkong Land Holdings, Ltd. | 99,400 | 768 | |||||
Freenet AG | 8,999 | 282 | Hopewell Holdings, Ltd. | 70,000 | 267 | |||||
Fresenius Medical Care AG & Co. | 9,096 | 807 | Jardine Matheson Holdings, Ltd. | 35,300 | 2,275 | |||||
Fresenius SE & Co. KGaA | 12,694 | 1,029 | Jardine Strategic Holdings, Ltd. | 23,200 | 980 | |||||
Hannover Rueck SE | 8,133 | 975 | Li & Fung, Ltd. | 156,000 | 65 | |||||
HeidelbergCement AG | 17,224 | 1,595 | Link Real Estate Investment Trust(ö) | 129,960 | 934 | |||||
Hella KGaA Hueck & Co. | 2,945 | 146 | Melco Crown Entertainment, Ltd.(Æ) | 8,400 | 61 | |||||
Henkel AG & Co. KGaA | 7,830 | 914 | MTR Corp., Ltd. | 94,000 | 541 | |||||
Hochtief AG | 1,980 | 356 | New World Development Co., Ltd. | 460,000 | 572 | |||||
Infineon Technologies AG - ADR | 65,994 | 1,366 | NWS Holdings, Ltd. | 117,000 | 220 | |||||
K&S AG | 20,148 | 481 | Power Assets Holdings, Ltd. | 29,500 | 265 | |||||
KION Group AG | 2,870 | 194 | Sino Land Co., Ltd. | 388,000 | 657 | |||||
Krones AG | 2,034 | 241 | Sun Hung Kai Properties, Ltd. | 123,190 | 1,845 | |||||
Lanxess AG | 4,472 | 323 | Swire Pacific, Ltd. Class A | 102,000 | 982 | |||||
LEG Immobilien AG(Æ) | 3,067 | 263 | Swire Properties, Ltd. | 57,200 | 192 | |||||
Linde AG | 2,858 | 514 | Techtronic Industries Co., Ltd. | 24,000 | 103 | |||||
MAN SE | 1,686 | 177 | Wharf Holdings, Ltd. (The) | 197,808 | 1,688 | |||||
Merck KGaA | 7,572 | 889 | Wheelock & Co., Ltd. | 106,000 | 826 | |||||
Metro AG | 14,432 | 475 | Xinyi Glass Holdings, Ltd. | 118,000 | 105 | |||||
MTU Aero Engines AG | 3,723 | 534 | Yue Yuen Industrial Holdings, Ltd. | 54,500 | 215 | |||||
Muenchener Rueckversicherungs- | 24,613 | |||||||||
Gesellschaft AG in Muenchen | 13,381 | 2,564 | ||||||||
Rational AG | 573 | 288 | Ireland - 0.7% | |||||||
Rheinmetall AG | 6,355 | 583 | Bank of Ireland(Æ) | 1,296,618 | 326 | |||||
Rhoen Klinikum AG | 2,460 | 70 | CRH PLC | 39,633 | 1,446 | |||||
RWE AG(Æ) | 31,673 | 524 | DCC PLC | 6,814 | 629 | |||||
SAP SE - ADR | 28,766 | 2,885 | Glanbia PLC | 12,058 | 235 | |||||
Siemens AG | 40,812 | 5,851 | Icon PLC(Æ) | 4,432 | 374 | |||||
Software AG | 2,103 | 93 | Jazz Pharmaceuticals PLC(Æ) | 2,166 | 345 | |||||
STADA Arzneimittel AG | 4,021 | 285 | Kerry Group PLC Class A | 4,108 | 336 | |||||
Suedzucker AG | 15,959 | 342 | Kingspan Group PLC | 8,327 | 289 | |||||
Symrise AG | 6,859 | 480 | Paddy Power Betfair PLC | 3,666 | 409 | |||||
Talanx AG | 2,635 | 95 | Smurfit Kappa Group PLC | 11,058 | 296 | |||||
ThyssenKrupp AG - ADR | 3,078 | 73 | Willis Towers Watson PLC | 5,048 | 669 | |||||
Uniper SE | 30,728 | 504 | 5,354 | |||||||
United Internet AG | 5,247 | 242 | ||||||||
Volkswagen AG | 485 | 78 | Israel - 0.6% | |||||||
Vonovia SE | 16,261 | 589 | Bank Hapoalim BM | 117,131 | 730 | |||||
Zalando SE(Æ)(Þ) | 2,425 | 107 | Bank Leumi Le-Israel BM(Æ) | 148,653 | 695 | |||||
60,373 | Check Point Software Technologies, Ltd. | |||||||||
(Æ) | 5,322 | 554 | ||||||||
Hong Kong - 3.0% | Delek Energy Systems, Ltd.(Æ) | 141 | 77 | |||||||
AIA Group, Ltd. | 270,253 | 1,869 | Elbit Systems, Ltd. | 1,765 | 210 | |||||
Bank of East Asia, Ltd. (The) | 113,400 | 470 | Frutarom Industries (1995) Ltd | 1,355 | 80 | |||||
BOC Hong Kong Holdings, Ltd. | 274,000 | 1,128 | Israel Chemicals, Ltd. | 22,525 | 97 | |||||
Cheung Kong Infrastructure Holdings, | Mizrahi Tefahot Bank, Ltd. | 20,698 | 334 | |||||||
Ltd. | 15,000 | 131 | Nice, Ltd. | 1,167 | 79 | |||||
Cheung Kong Property Holdings, Ltd. | 274,987 | 1,971 | Taro Pharmaceutical Industries, Ltd.(Æ) | 1,243 | 145 | |||||
Chinese Estates Holdings, Ltd. | 19,000 | 29 | Teva Pharmaceutical Industries, Ltd. | 55,336 | 1,745 | |||||
CK Hutchison Holdings, Ltd. | 177,036 | 2,209 | 4,746 | |||||||
CLP Holdings, Ltd. | 35,500 | 374 | ||||||||
Galaxy Entertainment Group, Ltd. | 69,000 | 384 | Italy - 2.1% | |||||||
Guoco Group, Ltd. | 12,000 | 138 | A2A SpA | 54,670 | 81 | |||||
Hang Lung Properties, Ltd. - ADR | 95,000 | 249 | ACEA SpA | 5,857 | 84 |
See accompanying notes which are an integral part of the financial statements.
738 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Assicurazioni Generali SpA | 100,482 | 1,591 | Coca-Cola West Co., Ltd. | 2,400 | 71 | |||||
Atlantia SpA | 24,793 | 629 | Concordia Financial Group, Ltd. | 69,600 | 321 | |||||
Azimut Holding SpA | 13,460 | 262 | Cosmos Pharmaceutical Corp. | 900 | 182 | |||||
Banca Mediolanum SpA | 12,321 | 94 | Credit Saison Co., Ltd. | 6,200 | 113 | |||||
Banca Popolare dell'Emilia Romagna SC | 30,020 | 164 | CyberAgent, Inc. | 3,300 | 102 | |||||
Banco BPM SpA(Æ) | 135,332 | 394 | CYBERDYNE, Inc.(Æ) | 14,100 | 199 | |||||
Brembo SpA | 1,164 | 91 | Dai Nippon Printing Co., Ltd. | 39,000 | 434 | |||||
Credito Emiliano SpA | 11,719 | 82 | Daicel Chemical Industries, Ltd. | 18,400 | 212 | |||||
Davide Campari-Milano SpA | 27,326 | 323 | Dai-ichi Life Holdings, Inc. | 39,600 | 676 | |||||
DiaSorin SpA | 1,502 | 113 | Daiichi Sankyo Co., Ltd. | 38,100 | 846 | |||||
Enel SpA | 590,894 | 2,808 | Daikin Industries, Ltd. | 9,100 | 885 | |||||
ENI SpA - ADR | 91,521 | 1,419 | Daito Trust Construction Co., Ltd. | 3,400 | 500 | |||||
Hera SpA | 130,926 | 374 | Daiwa House Industry Co., Ltd. | 23,100 | 686 | |||||
Intesa Sanpaolo SpA | 713,629 | 2,076 | Daiwa Securities Group, Inc. | 76,000 | 463 | |||||
Italgas SpA(Æ) | 31,431 | 142 | Denso Corp. | 22,800 | 983 | |||||
Leonardo SpA(Æ) | 26,003 | 408 | Disco Corp. | 600 | 95 | |||||
Luxottica Group SpA | 5,489 | 318 | Don Quijote Holdings Co., Ltd. | 3,200 | 117 | |||||
Mediobanca SpA | 47,194 | 454 | East Japan Railway Co. | 5,300 | 474 | |||||
Moncler SpA | 3,442 | 85 | Eisai Co., Ltd. | 6,400 | 336 | |||||
Parmalat SpA | 87,811 | 297 | Electric Power Development Co., Ltd. | 22,100 | 513 | |||||
Poste Italiane SpA(Þ) | 41,904 | 287 | Ezaki Glico Co., Ltd. | 4,500 | 237 | |||||
Prysmian SpA | 11,067 | 319 | FamilyMart UNY Holdings Co., Ltd. | 6,400 | 362 | |||||
Recordati SpA | 15,766 | 584 | FANUC Corp. | 6,300 | 1,281 | |||||
Snam Rete Gas SpA | 175,887 | 778 | Fast Retailing Co., Ltd. | 600 | 196 | |||||
Telecom Italia SpA(Æ) | 1,231,146 | 1,092 | Fuji Electric Co., Ltd. | 38,000 | 208 | |||||
Terna Rete Elettrica Nazionale SpA | 60,464 | 305 | Fuji Heavy Industries, Ltd. | 23,400 | 886 | |||||
UniCredit SpA(Æ) | 51,177 | 833 | FUJIFILM Holdings Corp. | 26,000 | 964 | |||||
Unione di Banche Italiane SpA | 84,071 | 354 | Fujitsu, Ltd. | 102,000 | 637 | |||||
Unipol Gruppo Finanziario SpA | 19,800 | 88 | Fukuoka Financial Group, Inc. | 99,000 | 451 | |||||
UnipolSai SpA | 76,978 | 177 | Gunma Bank, Ltd. (The) | 26,000 | 140 | |||||
17,106 | Hachijuni Bank, Ltd. (The) | 59,900 | 354 | |||||||
Hakuhodo DY Holdings, Inc. | 5,800 | 71 | ||||||||
Japan - 19.4% | Hamamatsu Photonics KK | 2,700 | 79 | |||||||
Advance Residence Investment Corp.(ö) | 28 | 74 | Hankyu Hanshin Holdings, Inc. | 19,600 | 648 | |||||
Aeon Co., Ltd. | 38,300 | 568 | Haseko Corp. | 25,300 | 289 | |||||
Air Water, Inc. | 5,000 | 96 | Hikari Tsushin, Inc. | 2,400 | 231 | |||||
Aisin Seiki Co., Ltd. | 22,100 | 1,083 | Hino Motors, Ltd. | 24,900 | 312 | |||||
Alfresa Holdings Corp. | 28,900 | 522 | Hirose Electric Co., Ltd. | 600 | 81 | |||||
ANA Holdings, Inc. | 132,000 | 397 | Hiroshima Bank, Ltd. (The) | 39,000 | 168 | |||||
Aozora Bank, Ltd. | 92,000 | 335 | Hisamitsu Pharmaceutical Co., Inc. | 9,400 | 481 | |||||
Asahi Glass Co., Ltd. | 72,000 | 625 | Hitachi Chemical Co., Ltd. | 8,300 | 238 | |||||
Asahi Group Holdings, Ltd. | 12,400 | 468 | Hitachi Construction Machinery Co., | |||||||
Asahi Intecc Co., Ltd. | 1,800 | 80 | Ltd. | 3,200 | 83 | |||||
Asahi Kasei Corp. | 90,000 | 858 | Hitachi High-Technologies Corp. | 5,800 | 232 | |||||
Astellas Pharma, Inc. | 78,300 | 1,032 | Hitachi Metals, Ltd. | 13,100 | 184 | |||||
Bandai Namco Holdings, Inc. | 8,300 | 260 | Hitachi, Ltd. | 237,000 | 1,308 | |||||
Bridgestone Corp. | 38,100 | 1,591 | Hokuriku Electric Power Co. | 8,500 | 79 | |||||
Brother Industries, Ltd. | 28,900 | 594 | Honda Motor Co., Ltd. | 84,600 | 2,453 | |||||
Calbee, Inc. | 3,600 | 126 | Hoshizaki Electric Co., Ltd. | 5,700 | 475 | |||||
Canon Marketing Japan, Inc. | 9,600 | 202 | Hoya Corp. | 21,000 | 1,004 | |||||
Canon, Inc. | 35,200 | 1,170 | Idemitsu Kosan Co., Ltd. | 21,900 | 699 | |||||
Central Japan Railway Co. | 7,000 | 1,174 | IHI Corp. | 27,000 | 92 | |||||
Century Tokyo Leasing Corp. | 10,500 | 362 | Iida Group Holdings Co., Ltd. | 20,800 | 331 | |||||
Chiba Bank, Ltd. (The) | 55,000 | 369 | Inpex Corp. | 44,000 | 422 | |||||
Chubu Electric Power Co., Inc. | 48,900 | 657 | Isuzu Motors, Ltd. | 44,000 | 597 | |||||
Chugai Pharmaceutical Co., Ltd. | 11,500 | 409 | Ito En, Ltd. | 3,000 | 109 | |||||
Chugoku Bank, Ltd. (The) | 20,100 | 299 | ITOCHU Corp. | 132,200 | 1,871 | |||||
Chugoku Electric Power Co., Inc. (The) | 12,900 | 141 | Itochu Techno-Solutions Corp. | 2,900 | 85 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 739
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Iyo Bank, Ltd. (The) | 16,900 | 120 | Mitsubishi Heavy Industries, Ltd. | 154,000 | 617 | |||||
Izumi Co., Ltd. | 1,700 | 85 | Mitsubishi Materials Corp. | 13,800 | 410 | |||||
J Front Retailing Co., Ltd. | 10,900 | 157 | Mitsubishi Motors Corp. | 39,100 | 251 | |||||
Japan Exchange Group, Inc. | 11,400 | 160 | Mitsubishi Tanabe Pharma Corp. | 23,300 | 473 | |||||
Japan Post Bank Co., Ltd. | 45,400 | 565 | Mitsubishi UFJ Financial Group, Inc. | 578,600 | 3,689 | |||||
Japan Post Holdings Co., Ltd. | 53,500 | 663 | Mitsubishi UFJ Lease & Finance Co., | |||||||
Japan Real Estate Investment Corp.(ö) | 30 | 158 | Ltd. | 40,300 | 211 | |||||
Japan Retail Fund Investment Corp.(ö) | 39 | 76 | Mitsui & Co., Ltd. | 147,700 | 2,085 | |||||
Japan Tobacco, Inc. | 29,500 | 981 | Mitsui Chemicals, Inc. | 90,000 | 460 | |||||
JFE Holdings, Inc. | 22,500 | 384 | Mitsui Fudosan Co., Ltd. | 3,000 | 66 | |||||
JGC Corp. | 14,000 | 245 | Mitsui OSK Lines, Ltd. | 62,000 | 190 | |||||
JSR Corp. | 16,600 | 303 | Mixi, Inc. | 3,700 | 205 | |||||
JTEKT Corp. | 11,300 | 178 | Mizuho Financial Group, Inc. | 1,074,000 | 1,962 | |||||
JX Holdings, Inc. | 253,100 | 1,143 | MS&AD Insurance Group Holdings, Inc. | 36,400 | 1,188 | |||||
Kajima Corp. | 123,000 | 836 | Murata Manufacturing Co., Ltd. | 3,300 | 443 | |||||
Kamigumi Co., Ltd. | 31,000 | 282 | Nagoya Railroad Co., Ltd. | 29,000 | 133 | |||||
Kaneka Corp. | 36,000 | 284 | Nankai Electric Railway Co., Ltd. | 40,000 | 197 | |||||
Kansai Electric Power Co., Inc. (The) | 60,100 | 813 | NEC Corp. | 247,000 | 615 | |||||
Kao Corp. | 16,900 | 932 | NH Foods, Ltd. | 5,000 | 142 | |||||
Kawasaki Heavy Industries, Ltd. | 41,000 | 124 | NHK Spring Co., Ltd. | 28,400 | 317 | |||||
KDDI Corp. | 75,100 | 1,992 | Nidec Corp. | 7,300 | 670 | |||||
Keihan Holdings Co., Ltd. | 31,000 | 195 | Nifco, Inc. | 1,500 | 75 | |||||
Keikyu Corp. | 14,000 | 161 | Nikon Corp. | 31,200 | 445 | |||||
Keio Corp. | 15,000 | 120 | Nintendo Co., Ltd. | 4,100 | 1,033 | |||||
Keisei Electric Railway Co., Ltd. | 5,500 | 131 | Nippon Electric Glass Co., Ltd. | 24,000 | 149 | |||||
Kewpie Corp. | 3,100 | 79 | Nippon Express Co., Ltd. | 97,000 | 533 | |||||
Keyence Corp. | 3,900 | 1,569 | Nippon Paint Holdings Co., Ltd. | 5,600 | 215 | |||||
Kikkoman Corp. | 11,000 | 338 | Nippon Shinyaku Co., Ltd. | 2,400 | 127 | |||||
Kintetsu Group Holdings Co., Ltd. | 74,000 | 270 | Nippon Shokubai Co., Ltd. | 2,300 | 155 | |||||
Kirin Holdings Co., Ltd. | 36,100 | 702 | Nippon Steel & Sumitomo Metal Corp. | 44,900 | 1,012 | |||||
Kobayashi Pharmaceutical Co., Ltd. | 5,800 | 304 | Nippon Telegraph & Telephone Corp. | 51,700 | 2,212 | |||||
Kobe Steel, Ltd.(Æ) | 26,300 | 234 | Nippon Yusen KK | 95,000 | 191 | |||||
Koito Manufacturing Co., Ltd. | 6,800 | 351 | Nissan Chemical Industries, Ltd. | 7,400 | 229 | |||||
Komatsu, Ltd. | 35,500 | 948 | Nissan Motor Co., Ltd. | 175,600 | 1,670 | |||||
Konami Holdings Corp. | 8,200 | 341 | Nisshin Seifun Group, Inc. | 18,300 | 281 | |||||
Konica Minolta, Inc. | 66,400 | 587 | Nissin Foods Holdings Co., Ltd. | 5,600 | 321 | |||||
Kose Corp. | 2,700 | 256 | Nitori Holdings Co., Ltd. | 5,800 | 756 | |||||
Kubota Corp. | 25,200 | 397 | NOK Corp. | 7,300 | 174 | |||||
Kuraray Co., Ltd. | 39,400 | 636 | Nomura Holdings, Inc. | 179,900 | 1,082 | |||||
Kyocera Corp. | 10,300 | 584 | Nomura Real Estate Holdings, Inc. | 14,200 | 240 | |||||
Kyowa Hakko Kirin Co., Ltd. | 18,200 | 313 | Nomura Real Estate Master Fund, Inc.(ö) | 112 | 161 | |||||
Lawson, Inc. | 1,000 | 66 | Nomura Research Institute, Ltd. | 2,300 | 80 | |||||
Lion Corp. | 9,000 | 163 | NSK, Ltd. | 20,800 | 284 | |||||
LIXIL Group Corp. | 5,900 | 147 | NTT Data Corp. | 8,700 | 404 | |||||
M3, Inc. | 10,200 | 261 | NTT DOCOMO, Inc. | 74,400 | 1,795 | |||||
Makita Corp. | 7,900 | 282 | Obayashi Corp. | 55,600 | 539 | |||||
Marubeni Corp. | 189,900 | 1,171 | Obic Co., Ltd. | 5,600 | 303 | |||||
Matsumotokiyoshi Holdings Co., Ltd. | 2,100 | 105 | Odakyu Electric Railway Co., Ltd. | 13,300 | 258 | |||||
Mazda Motor Corp. | 19,800 | 291 | Oji Holdings Corp. | 147,000 | 711 | |||||
Medipal Holdings Corp. | 33,100 | 548 | Ono Pharmaceutical Co., Ltd. | 25,000 | 517 | |||||
MEIJI Holdings Co., Ltd. | 6,900 | 586 | Oracle Corp. Japan | 4,100 | 236 | |||||
Minebea Co., Ltd. | 5,700 | 83 | Oriental Land Co., Ltd. | 4,500 | 259 | |||||
MISUMI Group, Inc. | 16,400 | 311 | ORIX Corp. | 106,600 | 1,629 | |||||
Mitsubishi Chemical Holdings Corp. | 164,500 | 1,288 | Orix JREIT, Inc.(ö) | 48 | 76 | |||||
Mitsubishi Corp. | 107,300 | 2,313 | Osaka Gas Co., Ltd. | 260,000 | 974 | |||||
Mitsubishi Electric Corp. | 84,000 | 1,173 | Otsuka Holdings Co., Ltd. | 25,100 | 1,159 | |||||
Mitsubishi Estate Co., Ltd. | 4,000 | 76 | Panasonic Corp. | 39,800 | 476 | |||||
Mitsubishi Gas Chemical Co., Inc. | 33,000 | 706 | Park24 Co., Ltd. | 13,200 | 341 |
See accompanying notes which are an integral part of the financial statements.
740 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Pola Orbis Holdings, Inc. | 9,200 | 212 | Taisei Corp. | 69,000 | 527 | ||||
Rakuten, Inc. | 13,800 | 141 | Taisho Pharmaceutical Holdings Co., | ||||||
Recruit Holdings Co., Ltd. | 16,000 | 809 | Ltd. | 4,700 | 387 | ||||
Resona Holdings, Inc. | 146,400 | 816 | Takashimaya Co., Ltd. | 41,000 | 378 | ||||
Ricoh Co., Ltd. | 40,600 | 338 | Takeda Pharmaceutical Co., Ltd. | 13,800 | 661 | ||||
Rinnai Corp. | 3,800 | 316 | Teijin, Ltd. | 15,800 | 306 | ||||
Rohm Co., Ltd. | 1,800 | 126 | Temp Holdings Co., Ltd. | 5,600 | 105 | ||||
Ryohin Keikaku Co., Ltd. | 1,100 | 248 | Terumo Corp. | 13,100 | 478 | ||||
Sankyo Co., Ltd. | 2,200 | 77 | THK Co., Ltd. | 3,200 | 83 | ||||
Santen Pharmaceutical Co., Ltd. | 21,900 | 308 | Tobu Railway Co., Ltd. | 26,000 | 132 | ||||
Sawai Pharmaceutical Co., Ltd. | 2,300 | 126 | Toho Co., Ltd. | 8,400 | 241 | ||||
SBI Holdings, Inc. | 38,600 | 535 | Toho Gas Co., Ltd. | 37,000 | 265 | ||||
Secom Co., Ltd. | 7,200 | 523 | Tohoku Electric Power Co., Inc. | 49,800 | 664 | ||||
Sega Sammy Holdings, Inc. | 21,600 | 290 | Tokio Marine Holdings, Inc. | 38,500 | 1,624 | ||||
Seiko Epson Corp. | 14,900 | 305 | Tokyo Broadcasting System Holdings, | ||||||
Sekisui Chemical Co., Ltd. | 55,800 | 936 | Inc. | 16,800 | 298 | ||||
Sekisui House, Ltd. | 54,700 | 909 | Tokyo Electric Power Co., Inc.(Æ) | 147,600 | 574 | ||||
Seven & i Holdings Co., Ltd. | 22,100 | 934 | Tokyo Electron, Ltd. | 6,100 | 711 | ||||
Sharp Corp.(Æ) | 34,000 | 123 | Tokyo Gas Co., Ltd. | 126,000 | 586 | ||||
Shimadzu Corp. | 9,000 | 153 | Tokyu Corp. | 42,000 | 301 | ||||
Shimamura Co., Ltd. | 2,600 | 356 | Tokyu Fudosan Holdings Corp. | 14,500 | 79 | ||||
Shimano, Inc. | 1,300 | 199 | Toppan Printing Co., Ltd. | 56,000 | 563 | ||||
Shimizu Corp. | 56,000 | 538 | Toray Industries, Inc. | 47,000 | 416 | ||||
Shin-Etsu Chemical Co., Ltd. | 9,000 | 782 | Toshiba Corp.(Æ) | 54,000 | 109 | ||||
Shinsei Bank, Ltd. | 194,000 | 363 | Tosoh Corp. | 75,000 | 705 | ||||
Shionogi & Co., Ltd. | 19,000 | 977 | TOTO, Ltd. | 5,900 | 226 | ||||
Shiseido Co., Ltd. | 13,700 | 371 | Toyo Seikan Group Holdings, Ltd. | 14,300 | 239 | ||||
Shizuoka Bank, Ltd. (The) | 47,000 | 397 | Toyo Suisan Kaisha, Ltd. | 5,000 | 188 | ||||
SMC Corp. | 2,500 | 705 | Toyoda Gosei Co., Ltd. | 9,300 | 247 | ||||
SoftBank Group Corp. | 37,100 | 2,813 | Toyota Industries Corp. | 16,700 | 832 | ||||
Sohgo Security Services Co., Ltd. | 8,200 | 358 | Toyota Motor Corp. | 112,800 | 6,095 | ||||
Sojitz Corp. | 252,000 | 640 | Toyota Tsusho Corp. | 18,300 | 577 | ||||
Sompo Japan Nipponkoa Holdings, Inc. | 12,600 | 476 | Tsuruha Holdings, Inc. | 3,400 | 345 | ||||
Sony Corp. | 31,000 | 1,047 | Unicharm Corp. | 11,900 | 289 | ||||
Sony Financial Holdings, Inc. | 4,700 | 78 | USS Co., Ltd. | 4,500 | 80 | ||||
Sosei Group Corp.(Æ) | 1,100 | 113 | Welcia Holdings Co., Ltd. | 3,000 | 97 | ||||
Stanley Electric Co., Ltd. | 6,400 | 187 | West Japan Railway Co. | 3,200 | 214 | ||||
Start Today Co., Ltd. | 7,100 | 152 | Yahoo! Japan Corp. | 51,200 | 219 | ||||
Sugi Holdings Co., Ltd. - GDR | 4,300 | 213 | Yakult Honsha Co., Ltd. | 1,900 | 108 | ||||
Sumitomo Chemical Co., Ltd. | 149,000 | 841 | Yamada Denki Co., Ltd. | 145,600 | 764 | ||||
Sumitomo Corp. | 150,100 | 2,007 | Yamaguchi Financial Group, Inc. | 24,000 | 266 | ||||
Sumitomo Dainippon Pharma Co., Ltd. | 19,700 | 323 | Yamaha Corp. | 13,400 | 372 | ||||
Sumitomo Electric Industries, Ltd. | 55,300 | 903 | Yamaha Motor Co., Ltd. | 3,200 | 76 | ||||
Sumitomo Heavy Industries, Ltd. | 41,000 | 286 | Yamato Holdings Co., Ltd. | 12,600 | 273 | ||||
Sumitomo Metal Mining Co., Ltd. | 52,000 | 704 | Yamazaki Baking Co., Ltd. | 7,700 | 162 | ||||
Sumitomo Mitsui Financial Group, Inc. | 54,800 | 2,031 | Yaskawa Electric Corp. | 9,400 | 180 | ||||
Sumitomo Mitsui Trust Holdings, Inc. | 25,800 | 885 | Yokogawa Electric Corp. | 5,500 | 85 | ||||
Sumitomo Realty & Development Co., | Yokohama Rubber Co., Ltd. (The) | 9,800 | 192 | ||||||
Ltd. | 3,000 | 81 | 156,938 | ||||||
Sumitomo Rubber Industries, Ltd. | 27,100 | 487 | |||||||
Sundrug Co., Ltd. | 6,100 | 214 | Jersey - 0.7% | ||||||
Suntory Beverage & Food, Ltd. | 8,200 | 367 | Experian PLC | 20,008 | 430 | ||||
Suruga Bank, Ltd. | 3,200 | 67 | Glencore PLC(Æ) | 815,173 | 3,195 | ||||
Suzuken Co., Ltd. | 10,400 | 344 | Randgold Resources, Ltd. | 1,023 | 90 | ||||
Suzuki Motor Corp. | 16,500 | 690 | Shire PLC - ADR | 21,573 | 1,271 | ||||
Sysmex Corp. | 11,100 | 675 | Wolseley PLC - ADR | 10,252 | 650 | ||||
T&D Holdings, Inc. | 14,600 | 217 | 5,636 | ||||||
Taiheiyo Cement Corp. | 143,000 | 476 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 741
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Luxembourg - 0.4% | Fletcher Building, Ltd. | 38,918 | 229 | ||||||
Aperam SA | 3,259 | 164 | Fonterra Group, Ltd. | 17,144 | 70 | ||||
ArcelorMittal(Æ) | 107,435 | 844 | Mercury NZ, Ltd. | 40,220 | 89 | ||||
Eurofins Scientific SE | 619 | 305 | Meridian Energy, Ltd. | 93,916 | 179 | ||||
Millicom International Cellular SA | 3,580 | 196 | Ryman Healthcare, Ltd. | 15,216 | 90 | ||||
RTL Group SA | 2,993 | 232 | Spark New Zealand, Ltd. | 116,623 | 296 | ||||
Samsonite International SA | 56,100 | 217 | 1,690 | ||||||
SES SA | 9,627 | 211 | |||||||
Tenaris SA | 29,382 | 459 | Norway - 0.7% | ||||||
Ternium SA - ADR | 9,338 | 236 | DNB ASA | 126,195 | 1,971 | ||||
2,864 | Gjensidige Forsikring ASA | 4,963 | 76 | ||||||
Leroy Seafood Group ASA | 3,043 | 153 | |||||||
Macao - 0.0% | Marine Harvest ASA | 24,533 | 408 | ||||||
Sands China, Ltd. | 63,600 | 289 | Norsk Hydro ASA | 97,908 | 558 | ||||
Orkla ASA | 41,846 | 379 | |||||||
Netherlands - 3.7% | Salmar ASA Class A | 2,386 | 57 | ||||||
Aalberts Industries NV | 4,999 | 198 | Statoil ASA Class N | 48,256 | 794 | ||||
ABN AMRO Group NV(Þ) | 36,265 | 951 | Telenor ASA | 37,860 | 612 | ||||
Aegon NV | 174,375 | 886 | Yara International ASA | 24,082 | 894 | ||||
AerCap Holdings NV(Æ) | 12,716 | 585 | 5,902 | ||||||
Akzo Nobel NV | 13,857 | 1,210 | |||||||
Altice NV Class A(Æ) | 7,121 | 177 | Portugal - 0.3% | ||||||
Altice NV Class B(Æ) | 3,333 | 83 | Banco BPI SA Class G(Æ) | 221,055 | 260 | ||||
ASM International NV | 5,336 | 321 | Banco Comercial Portugues SA Class | ||||||
ASML Holding NV | 16,532 | 2,183 | R(Æ) | 168,682 | 38 | ||||
ASR Nederland NV(Æ) | 2,644 | 78 | Banco Espirito Santo SA Class C(Æ) | 22,842 | 3 | ||||
Boskalis Westminster | 14,498 | 533 | Energias de Portugal SA | 332,887 | 1,099 | ||||
Core Laboratories NV | 1,868 | 207 | Galp Energia SGPS SA Class B | 24,400 | 379 | ||||
Delta Lloyd NV | 12,862 | 74 | Jeronimo Martins SGPS SA | 19,354 | 355 | ||||
Euronext NV(Þ) | 2,365 | 116 | Portucel SA - ADR(Æ) | 45,893 | 194 | ||||
EXOR NV | 5,779 | 324 | Sonae SGPS SA(Æ) | 162,884 | 167 | ||||
Ferrari NV | 4,411 | 331 | 2,495 | ||||||
Gemalto NV | 1,238 | 69 | |||||||
HAL Trust | 1,177 | 237 | Singapore - 0.9% | ||||||
Heineken Holding NV | 5,966 | 499 | CapitaLand Commercial Trust, Ltd.(Æ) | ||||||
Heineken NV | 7,360 | 656 | (ö) | 89,000 | 103 | ||||
ING Groep NV | 279,880 | 4,555 | CapitaLand Mall Trust Class A(Æ)(ö) | 158,800 | 224 | ||||
Koninklijke Ahold Delhaize NV | 112,629 | 2,333 | CapitaLand, Ltd. | 181,000 | 486 | ||||
Koninklijke DSM NV | 14,025 | 1,002 | City Developments, Ltd. | 41,700 | 323 | ||||
Koninklijke KPN NV | 24,285 | 70 | DBS Group Holdings, Ltd. | 110,800 | 1,539 | ||||
Koninklijke Philips NV | 46,429 | 1,609 | Flextronics International, Ltd.(Æ) | 33,113 | 512 | ||||
Koninklijke Vopak NV | 2,273 | 102 | Global Logistic Properties, Ltd. | 38,000 | 78 | ||||
Mobileye NV(Æ) | 1,621 | 100 | Jardine Cycle & Carriage, Ltd. | 8,000 | 271 | ||||
NN Group NV | 27,072 | 898 | Oversea-Chinese Banking Corp., Ltd. | 221,338 | 1,557 | ||||
NXP Semiconductors NV(Æ) | 14,132 | 1,494 | Singapore Airlines, Ltd.(Æ) | 34,400 | 252 | ||||
Philips Lighting NV(Æ)(Þ) | 7,170 | 242 | Singapore Telecommunications, Ltd. | 189,500 | 505 | ||||
Randstad Holding NV | 4,069 | 242 | United Overseas Bank, Ltd. | 81,900 | 1,281 | ||||
Royal Dutch Shell PLC Class A | 234,596 | 6,115 | Wilmar International, Ltd. | 186,100 | 472 | ||||
SBM Offshore NV | 27,035 | 445 | 7,603 | ||||||
Wolters Kluwer NV | 11,753 | 499 | |||||||
X5 Retail Group NV - GDR(Æ) | 12,337 | 435 | Spain - 3.7% | ||||||
Yandex NV Class A(Æ) | 11,622 | 317 | Abertis Infraestructuras SA | 29,798 | 524 | ||||
30,176 | Acciona SA | 2,040 | 168 | ||||||
Acerinox SA | 7,935 | 111 | |||||||
New Zealand - 0.2% | ACS Actividades de Construccion y | ||||||||
Auckland International Airport, Ltd. | 69,852 | 330 | Servicios SA | 13,489 | 500 | ||||
Contact Energy, Ltd. | 57,852 | 207 | Aena SA(Þ) | 6,092 | 1,074 | ||||
Fisher & Paykel Healthcare Corp., Ltd. | 28,945 | 200 | Almirall SA | 4,770 | 86 |
See accompanying notes which are an integral part of the financial statements.
742 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | |||||||||
Principal | Fair | Principal | Fair | |||||||
Amount ($) | Value | Amount ($) | Value | |||||||
or Shares | $ | or Shares | $ | |||||||
Amadeus IT Group SA Class A | 26,240 | 1,415 | Nordea Bank AB | 240,386 | 2,955 | |||||
Banco Bilbao Vizcaya Argentaria SA | Ratos AB Class B | 49,759 | 234 | |||||||
- ADR | 346,936 | 2,776 | Sandvik AB | 46,544 | 747 | |||||
Banco de Sabadell SA - ADR | 470,015 | 904 | Securitas AB Class B | 35,908 | 593 | |||||
Banco Popular Espanol SA(Æ) | 77,658 | 54 | Skandinaviska Enskilda Banken AB | |||||||
Banco Santander SA - ADR | 761,949 | 4,967 | Class A | 156,057 | 1,796 | |||||
Bankia SA Class A | 412,010 | 500 | Skanska AB Class B | 13,505 | 323 | |||||
Bankinter SA | 43,911 | 387 | SSAB AB Class A(Æ) | 53,193 | 232 | |||||
Bolsas y Mercados Espanoles SHMSF | Svenska Cellulosa AB SCA Class A | 6,940 | 231 | |||||||
SA | 4,255 | 152 | Svenska Cellulosa AB SCA Class B | 31,952 | 1,058 | |||||
CaixaBank SA | 191,800 | 869 | Svenska Handelsbanken AB Class A | 63,818 | 905 | |||||
Corp. Financiera Alba SA | 5,491 | 298 | Swedbank AB Class A | 65,204 | 1,544 | |||||
Ebro Foods SA | 23,266 | 520 | Swedish Match AB | 6,661 | 220 | |||||
Enagas SA | 21,814 | 574 | Tele2 AB Class B | 17,548 | 177 | |||||
Endesa SA - ADR | 50,425 | 1,188 | Telefonaktiebolaget LM Ericsson Class B | 215,863 | 1,390 | |||||
Ferrovial SA | 11,431 | 243 | Telia Co. AB | 246,629 | 1,005 | |||||
Gamesa Corp. Tecnologica SA | 21,021 | 454 | Trelleborg AB Class B | 24,296 | 571 | |||||
Gas Natural SDG SA | 47,058 | 1,064 | Volvo AB Class B | 34,158 | 559 | |||||
Grupo Catalana Occidente SA | 2,795 | 109 | 23,309 | |||||||
Iberdrola SA | 467,140 | 3,359 | ||||||||
Industria de Diseno Textil SA | 59,756 | 2,291 | Switzerland - 7.4% | |||||||
Mapfre SA | 98,018 | 342 | ABB, Ltd. | 70,515 | 1,725 | |||||
Merlin Properties Socimi SA(ö) | 13,625 | 161 | Actelion, Ltd.(Æ) | 3,662 | 978 | |||||
Obrascon Huarte Lain SA | 61,200 | 268 | Alpiq Holding AG(Æ) | 1,140 | 85 | |||||
Red Electrica Corp. SA | 10,350 | 202 | Aryzta AG(Æ) | 3,155 | 102 | |||||
Repsol SA - ADR | 133,629 | 2,115 | Baloise Holding AG | 4,513 | 662 | |||||
Tecnicas Reunidas SA | 3,603 | 143 | Barry Callebaut AG(Æ) | 145 | 199 | |||||
Telefonica SA - ADR | 187,228 | 2,064 | Basellandschaftliche Kantonalbank | 307 | 278 | |||||
Zardoya Otis SA | 13,699 | 127 | Berner Kantonalbank AG | 1,035 | 197 | |||||
30,009 | Bucher Industries AG | 1,142 | 368 | |||||||
Chocoladefabriken Lindt & Spruengli | ||||||||||
Sweden - 2.9% | AG | 82 | 826 | |||||||
Alfa Laval AB | 6,197 | 127 | Cie Financiere Richemont SA | 9,884 | 826 | |||||
Assa Abloy AB Class B | 35,408 | 767 | Coca-Cola HBC AG - ADR(Æ) | 3,442 | 95 | |||||
Atlas Copco AB Class A | 32,229 | 1,204 | Credit Suisse Group AG(Æ) | 113,325 | 1,723 | |||||
Atlas Copco AB Class B | 12,322 | 410 | Emmi AG(Æ) | 119 | 87 | |||||
Axfood AB | 18,834 | 299 | EMS-Chemie Holding AG | 516 | 323 | |||||
BillerudKorsnas AB | 11,282 | 181 | Flughafen Zuerich AG | 626 | 138 | |||||
Boliden AB | 19,408 | 554 | Galenica AG | 324 | 352 | |||||
Castellum AB | 28,085 | 385 | GAM Holding AG(Æ) | 11,789 | 151 | |||||
Electrolux AB | 3,590 | 107 | Geberit AG | 2,559 | 1,165 | |||||
Elekta AB Class B | 21,117 | 220 | Georg Fischer AG | 439 | 414 | |||||
Fabege AB | 6,521 | 112 | Givaudan SA | 328 | 632 | |||||
Fastighets AB Balder Class B(Æ) | 18,337 | 409 | Helvetia Holding AG | 346 | 192 | |||||
Fingerprint Cards AB Class B | 22,255 | 89 | Julius Baer Group, Ltd.(Æ) | 3,207 | 167 | |||||
Getinge AB Class B | 22,780 | 445 | Kaba Holding AG(Æ) | 110 | 94 | |||||
Hennes & Mauritz AB Class B | 27,565 | 682 | Kuehne & Nagel International AG | 3,023 | 457 | |||||
Hexagon AB Class B | 10,989 | 479 | LafargeHolcim, Ltd.(Æ) | 16,467 | 934 | |||||
Holmen AB Class B | 3,835 | 162 | Lonza Group AG(Æ) | 3,896 | 797 | |||||
Hufvudstaden AB Class A | 15,438 | 242 | Nestle SA | 147,299 | 11,345 | |||||
ICA Gruppen AB | 8,459 | 289 | Novartis AG | 102,367 | 7,877 | |||||
Investment AB Latour Class B | 4,009 | 181 | Partners Group Holding AG | 1,184 | 716 | |||||
L E Lundbergforetagen AB Class B | 5,236 | 379 | PSP Swiss Property AG | 1,901 | 170 | |||||
Lifco AB Class B | 3,138 | 95 | Roche Holding AG | 32,357 | 8,463 | |||||
Lundin Petroleum AB(Æ) | 6,232 | 119 | Schindler Holding AG | 5,427 | 1,099 | |||||
Melker Schorling AB | 5,537 | 354 | SFS Group AG(Æ) | 2,626 | 262 | |||||
NCC AB Class B | 9,989 | 266 | SGS SA | 233 | 524 | |||||
NIBE Industrier AB B Shares(Æ) | 23,928 | 212 | Sika AG | 114 | 728 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 743
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||
Principal | Fair | Principal | Fair | ||||||
Amount ($) | Value | Amount ($) | Value | ||||||
or Shares | $ | or Shares | $ | ||||||
Sonova Holding AG | 2,438 | 361 | Direct Line Insurance Group PLC | 65,450 | 296 | ||||
St. Galler Kantonalbank AG | 360 | 156 | Dixons Carphone PLC | 78,381 | 341 | ||||
STMicroelectronics NV | 28,658 | 464 | DS Smith PLC Class F | 18,803 | 105 | ||||
Straumann Holding AG | 479 | 253 | easyJet PLC | 5,810 | 88 | ||||
Sulzer AG | 1,642 | 192 | Fiat Chrysler Automobiles NV(Æ) | 116,286 | 1,317 | ||||
Sunrise Communications Group AG(Æ) | GKN PLC | 170,998 | 795 | ||||||
(Þ) | 1,002 | 74 | GlaxoSmithKline PLC - ADR | 209,678 | 4,217 | ||||
Swatch Group AG (The) Class B | 1,493 | 597 | Great Portland Estates PLC(ö) | 13,960 | 125 | ||||
Swiss Life Holding AG(Æ) | 2,053 | 668 | Greene King PLC | 33,308 | 324 | ||||
Swiss Prime Site AG Class A(Æ) | 4,652 | 403 | Halma PLC | 36,786 | 501 | ||||
Swiss Re AG | 32,168 | 2,801 | Hammerson PLC(ö) | 24,982 | 190 | ||||
Swisscom AG | 442 | 193 | Hargreaves Lansdown PLC | 5,831 | 104 | ||||
Syngenta AG | 2,698 | 1,254 | Hiscox, Ltd. | 47,871 | 702 | ||||
TE Connectivity, Ltd. | 13,905 | 1,076 | HSBC Holdings PLC | 1,178,771 | 9,706 | ||||
Temenos Group AG | 1,977 | 171 | IG Group Holdings PLC | 28,286 | 199 | ||||
UBS Group AG(Æ) | 164,933 | 2,818 | Imperial Tobacco Group PLC | 34,033 | 1,666 | ||||
Zurich Insurance Group AG | 11,541 | 3,194 | Inchcape PLC | 80,286 | 888 | ||||
59,826 | Informa PLC | 49,616 | 412 | ||||||
InterContinental Hotels Group PLC | 1,946 | 103 | |||||||
United Kingdom - 13.0% | Intermediate Capital Group PLC(Æ) | 46,678 | 472 | ||||||
3i Group PLC | 144,832 | 1,488 | International Consolidated Airlines | ||||||
Aberdeen Asset Management PLC | 95,104 | 344 | Group SA | 68,434 | 496 | ||||
Admiral Group PLC | 6,452 | 168 | Intertek Group PLC | 9,665 | 508 | ||||
Aggreko PLC | 6,013 | 69 | Investec PLC | 71,967 | 532 | ||||
Amec Foster Wheeler PLC - GDR | 16,698 | 117 | ITV PLC | 93,806 | 255 | ||||
Anglo American PLC(Æ) | 36,945 | 527 | J Sainsbury PLC | 183,850 | 656 | ||||
Ashmore Group PLC | 19,680 | 88 | John Wood Group PLC | 31,337 | 308 | ||||
Ashtead Group PLC | 11,269 | 238 | Johnson Matthey PLC | 9,164 | 353 | ||||
Associated British Foods PLC | 12,691 | 462 | Kingfisher PLC | 227,076 | 1,004 | ||||
AstraZeneca PLC | 37,550 | 2,246 | Land Securities Group PLC(ö) | 47,001 | 673 | ||||
Auto Trader Group PLC(Þ) | 17,120 | 89 | Legal & General Group PLC | 565,205 | 1,799 | ||||
Aviva PLC | 313,267 | 2,128 | Liberty Global PLC Class A(Æ) | 9,095 | 322 | ||||
Babcock International Group PLC | 46,196 | 538 | Liberty Global PLC Class C(Æ) | 13,935 | 482 | ||||
BAE Systems PLC | 70,802 | 574 | Liberty Global PLC LiLAC(Æ) | 3,863 | 84 | ||||
Barclays PLC | 853,950 | 2,328 | Lloyds Banking Group PLC | 3,087,751 | 2,774 | ||||
Barratt Developments PLC | 79,237 | 595 | London Stock Exchange Group PLC | 15,092 | 661 | ||||
BBA Aviation PLC | 30,028 | 121 | Man Group PLC | 176,056 | 350 | ||||
Bellway PLC | 13,762 | 507 | Marks & Spencer Group PLC | 112,084 | 532 | ||||
Berkeley Group Holdings PLC | 12,177 | 514 | Meggitt PLC | 75,511 | 452 | ||||
BHP Billiton PLC | 93,603 | 1,426 | Micro Focus International PLC | 14,602 | 489 | ||||
Booker Group PLC | 37,689 | 95 | Mondi PLC | 25,289 | 655 | ||||
BP PLC | 958,936 | 5,486 | National Grid PLC | 126,074 | 1,633 | ||||
British American Tobacco PLC | 81,765 | 5,532 | Next PLC | 9,402 | 524 | ||||
British Land Co. PLC (The)(ö) | 25,781 | 219 | Old Mutual PLC | 504,690 | 1,268 | ||||
BT Group PLC | 396,881 | 1,566 | Pearson PLC | 63,210 | 521 | ||||
BTG PLC(Æ) | 9,764 | 86 | Persimmon PLC Class A | 24,380 | 736 | ||||
Bunzl PLC | 15,968 | 498 | Petrofac, Ltd. | 27,705 | 292 | ||||
Capita PLC | 14,994 | 108 | Prudential PLC | 60,249 | 1,338 | ||||
Centrica PLC | 25,172 | 65 | Reckitt Benckiser Group PLC | 25,958 | 2,391 | ||||
Close Brothers Group PLC | 10,926 | 239 | RELX NV | 22,243 | 430 | ||||
CNH Industrial NV | 48,773 | 538 | RELX PLC | 47,180 | 956 | ||||
Coca-Cola European Partners PLC | 8,386 | 324 | Rentokil Initial PLC | 107,500 | 346 | ||||
Compass Group PLC | 63,810 | 1,287 | Rightmove PLC | 2,731 | 148 | ||||
Croda International PLC | 2,126 | 104 | Rio Tinto PLC | 43,379 | 1,716 | ||||
CYBG PLC(Æ) | 70,554 | 257 | Rolls-Royce Holdings PLC(Æ) | 3,264,192 | 480 | ||||
Derwent London PLC(ö) | 2,249 | 86 | Royal Bank of Scotland Group PLC(Æ) | 56,621 | 195 | ||||
Diageo PLC | 93,078 | 2,711 | Royal Dutch Shell PLC Class B | 91,307 | 2,431 | ||||
Dialog Semiconductor PLC(Æ) | 2,058 | 96 | Royal Mail PLC | 79,432 | 414 |
See accompanying notes which are an integral part of the financial statements.
744 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | Amounts in thousands (except share amounts) | ||||||||||||
Principal | Fair | Principal | Fair | ||||||||||
Amount ($) | Value | Amount ($) | Value | ||||||||||
or Shares | $ | or Shares | $ | ||||||||||
RSA Insurance Group PLC | 46,463 | 359 | Volkswagen AG | 12,313 | 1,951 | ||||||||
Sage Group PLC (The) | 83,717 | 726 | 4,895 | ||||||||||
Scottish & Southern Energy PLC | 30,198 | 544 | |||||||||||
Segro PLC(ö) | 30,469 | 192 | Japan | - 0.0% | |||||||||
Severn Trent PLC Class H | 3,800 | 114 | Shinkin Central Bank Class A | 134 | 278 | ||||||||
Shaftesbury PLC(ö) | 14,484 | 175 | |||||||||||
Sky PLC | 12,015 | 154 | Sweden - 0.0% | ||||||||||
Smith & Nephew PLC | 40,242 | 662 | Fastighets AB Balder | 4,759 | 183 | ||||||||
Smiths Group PLC | 11,650 | 247 | |||||||||||
Spectris PLC | 7,154 | 256 | Total Preferred Stocks | ||||||||||
Spirax-Sarco Engineering PLC | 1,394 | 94 | (cost $5,958) | 5,356 | |||||||||
Standard Chartered PLC(Æ) | 112,811 | 1,053 | |||||||||||
Standard Life PLC | 88,085 | 415 | |||||||||||
Warrants & Rights - 0.0% | |||||||||||||
Steris PLC | 4,682 | 346 | Australia - 0.0% | ||||||||||
Subsea 7 SA | 50,047 | 824 | TPG Telecom, Ltd.(Æ) | ||||||||||
Tate & Lyle PLC | 23,486 | 230 | 2017 Rights | 1,532 | 1 | ||||||||
Taylor Wimpey PLC | 289,529 | 750 | |||||||||||
TechnipFMC PLC(Æ) | 36,389 | 1,094 | |||||||||||
Tesco PLC(Æ) | 336,163 | 797 | Total Warrants & Rights | ||||||||||
Travis Perkins PLC | 25,096 | 524 | (cost $—) | 1 | |||||||||
UBM PLC | 17,495 | 161 | |||||||||||
Unilever NV | 43,322 | 2,272 | Short | -Term Investments - 3.1% | |||||||||
Unilever PLC | 46,189 | 2,376 | United States - 3.1% | ||||||||||
United Utilities Group PLC | 10,434 | 132 | U.S. Cash Management Fund | 25,317,861 | (8) | 25,323 | |||||||
Vodafone Group PLC | 885,482 | 2,283 | Total Short-Term Investments | ||||||||||
Weir Group PLC (The) | 3,715 | 96 | (cost $25,323) | 25,323 | |||||||||
William Hill PLC | 53,885 | 205 | |||||||||||
Wm Morrison Supermarkets PLC | 310,006 | 963 | Other Securities - 1.9% | ||||||||||
WPP PLC | 75,389 | 1,613 | U.S. Cash Collateral Fund(×) | 15,578,895 | (8) | 15,579 | |||||||
105,276 | Total Other Securities | ||||||||||||
United States - 0.6% | (cost $15,579) | 15,579 | |||||||||||
Autoliv, Inc. | 4,347 | 436 | |||||||||||
Carnival PLC | 25,419 | 1,568 | Total Investments 100.3% | ||||||||||
IHS Markit, Ltd.(Æ) | 42,533 | 1,846 | (identified cost $759,619) | 812,403 | |||||||||
Seagate Technology PLC | 13,654 | 575 | |||||||||||
Sensata Technologies Holding NV(Æ) | 5,784 | 238 | |||||||||||
Valeant Pharmaceuticals International, | Other Assets and Liabilities, Net | ||||||||||||
Inc.(Æ) | 30,029 | 278 | - | (0.3%) | (2,094 | ) | |||||||
4,941 | Net Assets - 100.0% | 810,309 | |||||||||||
Total Common Stocks | |||||||||||||
(cost $701,761) | 754,548 | ||||||||||||
Investments in Other Funds - 1.4% | |||||||||||||
Platinum Asset Management, Ltd. | 23,404 | 82 | |||||||||||
Vanguard FTSE Emerging Markets ETF | 285,435 | 11,514 | |||||||||||
Total Investments in Other Funds | |||||||||||||
(cost $10,998) | 11,596 | ||||||||||||
Preferred Stocks - 0.7% | |||||||||||||
Germany - 0.7% | |||||||||||||
Fuchs Petrolub SE | 5,714 | 295 | |||||||||||
Henkel AG & Co. KGaA | 8,473 | 1,155 | |||||||||||
Porsche Automobil Holding SE | 17,550 | 1,027 | |||||||||||
Sartorius AG | 3,764 | 345 | |||||||||||
Schaeffler AG | 7,093 | 122 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 745
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
FTSE 100 Index Futures | 87 | GBP | 6,234 | 06/17 | (137 | ) | |
MSCI Emerging Markets Mini Index Futures | 263 | USD | 23,982 | 06/17 | 831 | ||
S&P/TSX 60 Index Futures | 45 | CAD | 8,251 | 06/17 | 15 | ||
SPI 200 Index Futures | 37 | AUD | 5,470 | 06/17 | 112 | ||
Short Positions | |||||||
S&P 500 E-Mini Index Futures | 137 | USD | 16,306 | 06/17 | (133 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 688 |
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of America | USD | 152 | AUD | 200 | 06/21/17 | (2 | ) | |
Bank of America | USD | 227 | AUD | 300 | 06/21/17 | (3 | ) | |
Bank of America | USD | 1,875 | AUD | 2,500 | 06/21/17 | (4 | ) | |
Bank of America | USD | 223 | CAD | 300 | 06/21/17 | (3 | ) | |
Bank of America | USD | 223 | CAD | 300 | 06/21/17 | (3 | ) | |
Bank of America | USD | 100 | CHF | 100 | 06/21/17 | 1 | ||
Bank of America | USD | 72 | DKK | 500 | 06/21/17 | 2 | ||
Bank of America | USD | 855 | EUR | 800 | 06/21/17 | 19 | ||
Bank of America | USD | 306 | GBP | 250 | 06/21/17 | 18 | ||
Bank of America | USD | 612 | GBP | 500 | 06/21/17 | 37 | ||
Bank of America | USD | 1,867 | GBP | 1,500 | 06/21/17 | 78 | ||
Bank of America | USD | 370 | JPY | 40,000 | 06/21/17 | (10 | ) | |
Bank of America | USD | 2,536 | JPY | 280,000 | 06/21/17 | (19 | ) | |
Bank of America | USD | 208 | NZD | 300 | 06/21/17 | (2 | ) | |
Bank of America | CAD | 30 | USD | 22 | 06/21/17 | — | ||
Bank of America | CAD | 200 | USD | 150 | 06/21/17 | 4 | ||
Bank of America | CAD | 300 | USD | 220 | 06/21/17 | 1 | ||
Bank of America | CHF | 60 | USD | 60 | 06/21/17 | — | ||
Bank of America | CHF | 720 | USD | 717 | 06/21/17 | (9 | ) | |
Bank of America | DKK | 8,000 | USD | 1,144 | 06/21/17 | (31 | ) | |
Bank of America | EUR | 400 | USD | 427 | 06/21/17 | (10 | ) | |
Bank of America | EUR | 3,000 | USD | 3,189 | 06/21/17 | (88 | ) | |
Bank of America | GBP | 400 | USD | 500 | 06/21/17 | (19 | ) | |
Bank of America | JPY | 80,000 | USD | 700 | 06/21/17 | (19 | ) | |
Bank of America | NOK | 2,000 | USD | 233 | 06/21/17 | — | ||
Bank of America | NZD | 1,700 | USD | 1,181 | 06/21/17 | 15 | ||
Bank of America | SEK | 1,800 | USD | 202 | 06/21/17 | (2 | ) | |
Bank of Montreal | USD | 759 | AUD | 994 | 06/21/17 | (16 | ) | |
Bank of Montreal | USD | 848 | AUD | 1,110 | 06/21/17 | (18 | ) | |
Bank of Montreal | USD | 158 | CAD | 210 | 06/21/17 | (4 | ) | |
Bank of Montreal | USD | 592 | CAD | 790 | 06/21/17 | (13 | ) | |
Bank of Montreal | USD | 826 | CAD | 1,101 | 06/21/17 | (19 | ) | |
Bank of Montreal | USD | 362 | CHF | 364 | 06/21/17 | 5 | ||
Bank of Montreal | USD | 214 | DKK | 1,500 | 06/21/17 | 7 | ||
Bank of Montreal | USD | 1,272 | GBP | 1,033 | 06/21/17 | 68 | ||
Bank of Montreal | USD | 2,241 | GBP | 1,820 | 06/21/17 | 120 | ||
Bank of Montreal | USD | 434 | NZD | 610 | 06/21/17 | (16 | ) |
See accompanying notes which are an integral part of the financial statements.
746 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Bank of Montreal | CAD | 200 | USD | 150 | 06/21/17 | 3 | ||
Bank of Montreal | EUR | 2,310 | USD | 2,444 | 06/21/17 | (78 | ) | |
Bank of Montreal | JPY | 179,600 | USD | 1,582 | 06/21/17 | (32 | ) | |
Bank of Montreal | NOK | 4,880 | USD | 580 | 06/21/17 | 11 | ||
Bank of Montreal | SEK | 5,950 | USD | 660 | 06/21/17 | (13 | ) | |
BNP Paribas | USD | 752 | AUD | 994 | 06/21/17 | (9 | ) | |
BNP Paribas | USD | 591 | CAD | 790 | 06/21/17 | (12 | ) | |
BNP Paribas | USD | 361 | CHF | 364 | 06/21/17 | 6 | ||
BNP Paribas | USD | 213 | DKK | 1,500 | 06/21/17 | 7 | ||
BNP Paribas | USD | 2,240 | GBP | 1,820 | 06/21/17 | 121 | ||
BNP Paribas | USD | 431 | NZD | 610 | 06/21/17 | (12 | ) | |
BNP Paribas | CAD | 200 | USD | 150 | 06/21/17 | 3 | ||
BNP Paribas | EUR | 2,310 | USD | 2,438 | 06/21/17 | (84 | ) | |
BNP Paribas | JPY | 179,600 | USD | 1,576 | 06/21/17 | (38 | ) | |
BNP Paribas | NOK | 4,880 | USD | 576 | 06/21/17 | 7 | ||
BNP Paribas | SEK | 5,950 | USD | 659 | 06/21/17 | (14 | ) | |
Citigroup | USD | 743 | CAD | 1,000 | 06/21/17 | (10 | ) | |
Citigroup | USD | 1,194 | CAD | 1,600 | 06/21/17 | (20 | ) | |
Citigroup | CAD | 30 | USD | 22 | 06/21/17 | — | ||
Citigroup | CAD | 65 | USD | 49 | 06/21/17 | 1 | ||
Citigroup | CAD | 100 | USD | 75 | 06/21/17 | 1 | ||
Citigroup | CAD | 150 | USD | 113 | 06/21/17 | 3 | ||
Citigroup | CAD | 200 | USD | 150 | 06/21/17 | 3 | ||
Citigroup | CAD | 200 | USD | 147 | 06/21/17 | — | ||
Commonwealth Bank of Australia | USD | 759 | AUD | 994 | 06/21/17 | (15 | ) | |
Commonwealth Bank of Australia | USD | 847 | AUD | 1,110 | 06/21/17 | (17 | ) | |
Commonwealth Bank of Australia | USD | 158 | CAD | 210 | 06/21/17 | (4 | ) | |
Commonwealth Bank of Australia | USD | 592 | CAD | 790 | 06/21/17 | (13 | ) | |
Commonwealth Bank of Australia | USD | 826 | CAD | 1,101 | 06/21/17 | (19 | ) | |
Commonwealth Bank of Australia | USD | 363 | CHF | 364 | 06/21/17 | 4 | ||
Commonwealth Bank of Australia | USD | 214 | DKK | 1,500 | 06/21/17 | 7 | ||
Commonwealth Bank of Australia | USD | 1,272 | GBP | 1,033 | 06/21/17 | 68 | ||
Commonwealth Bank of Australia | USD | 2,241 | GBP | 1,820 | 06/21/17 | 121 | ||
Commonwealth Bank of Australia | USD | 434 | NZD | 610 | 06/21/17 | (16 | ) | |
Commonwealth Bank of Australia | EUR | 2,310 | USD | 2,446 | 06/21/17 | (77 | ) | |
Commonwealth Bank of Australia | JPY | 179,600 | USD | 1,583 | 06/21/17 | (31 | ) | |
Commonwealth Bank of Australia | NOK | 4,880 | USD | 580 | 06/21/17 | 11 | ||
Commonwealth Bank of Australia | SEK | 5,950 | USD | 661 | 06/21/17 | (13 | ) | |
Royal Bank of Canada | USD | 754 | AUD | 994 | 06/21/17 | (10 | ) | |
Royal Bank of Canada | USD | 841 | AUD | 1,110 | 06/21/17 | (11 | ) | |
Royal Bank of Canada | USD | 157 | CAD | 210 | 06/21/17 | (3 | ) | |
Royal Bank of Canada | USD | 591 | CAD | 790 | 06/21/17 | (12 | ) | |
Royal Bank of Canada | USD | 824 | CAD | 1,101 | 06/21/17 | (17 | ) | |
Royal Bank of Canada | USD | 362 | CHF | 364 | 06/21/17 | 5 | ||
Royal Bank of Canada | USD | 213 | DKK | 1,500 | 06/21/17 | 7 | ||
Royal Bank of Canada | USD | 1,271 | GBP | 1,033 | 06/21/17 | 69 | ||
Royal Bank of Canada | USD | 2,239 | GBP | 1,820 | 06/21/17 | 121 | ||
Royal Bank of Canada | USD | 431 | NZD | 610 | 06/21/17 | (13 | ) | |
Royal Bank of Canada | EUR | 2,310 | USD | 2,439 | 06/21/17 | (83 | ) | |
Royal Bank of Canada | JPY | 179,600 | USD | 1,578 | 06/21/17 | (36 | ) | |
Royal Bank of Canada | NOK | 4,880 | USD | 577 | 06/21/17 | 9 | ||
Royal Bank of Canada | SEK | 5,950 | USD | 661 | 06/21/17 | (13 | ) | |
Standard Chartered | USD | 759 | AUD | 994 | 06/21/17 | (16 | ) |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 747
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
Standard Chartered | USD | 848 | AUD | 1,110 | 06/21/17 | (17 | ) | |
Standard Chartered | USD | 592 | CAD | 790 | 06/21/17 | (13 | ) | |
Standard Chartered | USD | 826 | CAD | 1,101 | 06/21/17 | (19 | ) | |
Standard Chartered | USD | 362 | CHF | 364 | 06/21/17 | 4 | ||
Standard Chartered | USD | 214 | DKK | 1,500 | 06/21/17 | 7 | ||
Standard Chartered | USD | 1,272 | GBP | 1,033 | 06/21/17 | 68 | ||
Standard Chartered | USD | 2,240 | GBP | 1,820 | 06/21/17 | 120 | ||
Standard Chartered | USD | 434 | NZD | 610 | 06/21/17 | (16 | ) | |
Standard Chartered | EUR | 2,310 | USD | 2,444 | 06/21/17 | (78 | ) | |
Standard Chartered | JPY | 179,600 | USD | 1,582 | 06/21/17 | (32 | ) | |
Standard Chartered | NOK | 4,880 | USD | 579 | 06/21/17 | 11 | ||
Standard Chartered | SEK | 5,950 | USD | 661 | 06/21/17 | (13 | ) | |
State Street | USD | 4,022 | CAD | 5,400 | 06/21/17 | (63 | ) | |
State Street | CAD | 30 | USD | 22 | 06/21/17 | — | ||
State Street | CAD | 127 | USD | 95 | 06/21/17 | 2 | ||
State Street | CAD | 3,400 | USD | 2,557 | 06/21/17 | 64 | ||
UBS | CAD | 640 | USD | 479 | 06/21/17 | 10 | ||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (53 | ) |
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Common Stocks | |||||||||||||||||
Australia | $ | — | $ | 40,513 | $ | — | $ | — | $ | 40,513 | 5.0 | ||||||
Austria | — | 4,942 | — | — | 4,942 | 0.6 | |||||||||||
Belgium | — | 8,455 | — | — | 8,455 | 1.0 | |||||||||||
Canada | 58,461 | — | — | — | 58,461 | 7.2 | |||||||||||
Cayman Islands | 89 | 509 | — | — | 598 | 0.1 | |||||||||||
China | — | 354 | — | — | 354 | —* | |||||||||||
Denmark | — | 11,250 | — | — | 11,250 | 1.4 | |||||||||||
Finland | — | 8,716 | — | — | 8,716 | 1.1 | |||||||||||
France | 671 | 71,442 | — | — | 72,113 | 8.9 | |||||||||||
Germany | — | 60,373 | — | — | 60,373 | 7.5 | |||||||||||
Hong Kong | — | 24,552 | 61 | — | 24,613 | 3.0 | |||||||||||
Ireland | 1,388 | 3,966 | — | — | 5,354 | 0.7 | |||||||||||
Israel | 699 | 4,047 | — | — | 4,746 | 0.6 | |||||||||||
Italy | — | 17,106 | — | — | 17,106 | 2.1 | |||||||||||
Japan | — | 156,938 | — | — | 156,938 | 19.4 | |||||||||||
Jersey | — | 5,636 | — | — | 5,636 | 0.7 | |||||||||||
Luxembourg | 236 | 2,628 | — | — | 2,864 | 0.4 | |||||||||||
Macao | — | 289 | — | — | 289 | —* | |||||||||||
Netherlands | 3,138 | 27,038 | — | — | 30,176 | 3.7 | |||||||||||
New Zealand | — | 1,690 | — | — | 1,690 | 0.2 |
See accompanying notes which are an integral part of the financial statements.
748 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||||
Amounts in thousands | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Practical | ||||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||||
Norway | — | 5,902 | — | — | 5,902 | 0.7 | ||||||||||||||
Portugal | — | 2,492 | 3 | — | 2,495 | 0.3 | ||||||||||||||
Singapore | 512 | 7,091 | — | — | 7,603 | 0.9 | ||||||||||||||
Spain | — | 30,009 | — | — | 30,009 | 3.7 | ||||||||||||||
Sweden | — | 23,309 | — | — | 23,309 | 2.9 | ||||||||||||||
Switzerland | 1,076 | 58,750 | — | — | 59,826 | 7.4 | ||||||||||||||
United Kingdom | 1,562 | 103,714 | — | — | 105,276 | 13.0 | ||||||||||||||
United States | 3,373 | 1,568 | — | — | 4,941 | 0.6 | ||||||||||||||
Investments in Other Funds | 11,514 | 82 | — | — | 11,596 | 1.4 | ||||||||||||||
Preferred Stocks | — | 5,356 | — | — | 5,356 | 0.7 | ||||||||||||||
Warrants & Rights | — | 1 | — | — | 1 | —* | ||||||||||||||
Short-Term Investments | — | — | — | 25,323 | 25,323 | 3.1 | ||||||||||||||
Other Securities | — | — | — | 15,579 | 15,579 | 1.9 | ||||||||||||||
Total Investments | 82,719 | 688,718 | 64 | 40,902 | 812,403 | 100.3 | ||||||||||||||
(0.3 | ) | |||||||||||||||||||
Other Assets and Liabilities, Net | ||||||||||||||||||||
100.0 | ||||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Futures Contracts | 958 | — | — | — | 958 | 0.1 | ||||||||||||||
Foreign Currency Exchange Contracts | — | 1,249 | — | — | 1,249 | 0.2 | ||||||||||||||
A | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Futures Contracts | (270 | ) | — | — | — | (270 | ) | (—)* | ||||||||||||
Foreign Currency Exchange Contracts | — | (1,302 | ) | — | — | (1,302 | ) | (0.2 | ) | |||||||||||
Total Other Financial Instruments** | $ | 688 | $ | (53 | ) | $ | — | $ | — | $ | 635 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended April
30, 2017, were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 749
Russell Investment Company
Select International Equity Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Fair Value | |||
Sector Exposure | $ | ||
Consumer Discretionary | 96,029 | ||
Consumer Staples | 54,756 | ||
Energy | 41,486 | ||
Financial Services | 219,345 | ||
Health Care | 67,901 | ||
Materials and Processing | 78,463 | ||
Producer Durables | 101,557 | ||
Technology | 40,414 | ||
Utilities | 54,597 | ||
Investments in Other Funds | 11,596 | ||
Preferred Stocks | 5,356 | ||
Warrants and Rights | 1 | ||
Short-Term Investments | 25,323 | ||
Other Securities | 15,579 | ||
Total Investments | 812,403 |
See accompanying notes which are an integral part of the financial statements.
750 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||
Equity | Currency | ||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||
Location: Statement of Assets and Liabilities - Assets | |||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 1,249 | |
Variation margin on futures contracts* | 958 | — | |||
Total | $ | 958 | $ | 1,249 | |
Location: Statement of Assets and Liabilities - Liabilities | |||||
Variation margin on futures contracts* | $ | 270 | $ | — | |
Unrealized depreciation on foreign currency exchange contracts | — | 1,302 | |||
Total | $ | 270 | $ | 1,302 | |
Foreign | |||||
Equity | Currency | ||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||
Location: Statement of Operations - Net realized gain (loss) | |||||
Futures contracts | $ | 1,465 | $ | — | |
Foreign currency-related transactions** | — | 1,272 | |||
Total | $ | 1,465 | $ | 1,272 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||
Futures contracts | $ | 125 | $ | — | |
Foreign currency-related transactions*** | — | 810 | |||
Total | $ | 125 | $ | 810 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 751
Russell Investment Company
Select International Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||
Gross | Net Amounts | ||||||||||||
Amounts | of Assets | ||||||||||||
Gross | Offset in the | Presented in | |||||||||||
Amounts of | Statement of | the Statement | |||||||||||
Recognized | Assets and | of Assets and | |||||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||||||
Securities on Loan* | Investments, at fair value | $ | 14,807 | $ | — | $ | 14,807 | ||||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 1,249 | — | 1,249 | |||||||||
Futures Contracts | Variation margin on futures contracts | 71 | — | 71 | |||||||||
Total Financial and Derivative Assets | 16,127 | — | 16,127 | ||||||||||
Financial and Derivative Assets not subject to a netting agreement | (71 | ) | — | (71 | ) | ||||||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 16,056 | $ | — | $ | 16,056 | |||||||
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||||||
Gross Amounts Not Offset in | |||||||||||||
the Statement of Assets and | |||||||||||||
Liabilities | |||||||||||||
Net Amounts | |||||||||||||
of Assets | |||||||||||||
Presented in | |||||||||||||
the Statement | Financial and | ||||||||||||
of Assets and | Derivative | Collateral | |||||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||||||
Bank of America | $ | 175 | $ | 175 | $ | — | $ | — | |||||
Bank of Montreal | 213 | 208 | — | 5 | |||||||||
BNP Paribas | 144 | 144 | — | — | |||||||||
Citigroup | 462 | 8 | 454 | — | |||||||||
Commonwealth Bank of Australia | 209 | 204 | — | 5 | |||||||||
Credit Suisse | 1,138 | — | 1,138 | — | |||||||||
Goldman Sachs | 6,382 | — | 6,382 | — | |||||||||
HSBC | 356 | — | 356 | — | |||||||||
JPMorgan Chase | 5,743 | — | 5,743 | — | |||||||||
Merrill Lynch | 735 | — | 735 | — | |||||||||
Royal Bank of Canada | 211 | 198 | — | 13 | |||||||||
Standard Chartered | 211 | 204 | — | 7 | |||||||||
State Street | 67 | 63 | — | 4 | |||||||||
UBS | 10 | — | — | 10 | |||||||||
Total | $ | 16,056 | $ | 1,204 | $ | 14,808 | $ | 44 |
See accompanying notes which are an integral part of the financial statements.
752 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||
Gross | Net Amounts | ||||||||||||
Amounts | of Liabilities | ||||||||||||
Gross | Offset in the | Presented in | |||||||||||
Amounts of | Statement of | the Statement | |||||||||||
Recognized | Assets and | of Assets and | |||||||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||||||
Futures Contracts | Variation margin on futures contracts | $ | 63 | $ | — | $ 63 | |||||||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 1,302 | — | 1,302 | |||||||||
Total Financial and Derivative Liabilities | 1,365 | — | 1,365 | ||||||||||
Financial and Derivative Liabilities not subject to a netting agreement | (63 | ) | — | (63 | ) | ||||||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 1,302 | $ | — | $ 1,302 | ||||||||
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||||||
Gross Amounts Not Offset in | |||||||||||||
the Statement of Assets and | |||||||||||||
Liabilities | |||||||||||||
Net Amounts | |||||||||||||
of Liabilities | |||||||||||||
Presented in | |||||||||||||
the Statement | Financial and | ||||||||||||
of Assets and | Derivative | Collateral | |||||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||||||
Bank of America | $ | 224 | $ | 175 | $ | — | $ 49 | ||||||
Bank of Montreal | 208 | 208 | — | — | |||||||||
BNP Paribas | 170 | 144 | — | 26 | |||||||||
Citigroup | 31 | 8 | — | 23 | |||||||||
Commonwealth Bank of Australia | 204 | 204 | — | — | |||||||||
Royal Bank of Canada | 198 | 198 | — | — | |||||||||
Standard Chartered | 204 | 204 | — | — | |||||||||
State Street | 63 | 63 | — | — | |||||||||
Total | $ | 1,302 | $ | 1,204 | $ | — | $ 98 |
* Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 753
Russell Investment Company
Select International Equity Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 759,619 |
Investments, at fair value(*)(>) | 812,403 | |
Cash (restricted)(a) | 3,700 | |
Foreign currency holdings(^) | 7,342 | |
Unrealized appreciation on foreign currency exchange contracts | 1,249 | |
Receivables: | ||
Dividends and interest | 3,046 | |
Dividends from affiliated funds | 19 | |
Fund shares sold | 406 | |
Foreign capital gains taxes recoverable | 1,665 | |
Variation margin on futures contracts | 71 | |
Prepaid expenses | 9 | |
Total assets | 829,910 | |
Liabilities | ||
Payables: | ||
Due to custodian | 2 | |
Due to broker (b) | 700 | |
Investments purchased | 4 | |
Fund shares redeemed | 1,392 | |
Accrued fees to affiliates | 302 | |
Other accrued expenses | 257 | |
Variation margin on futures contracts | 63 | |
Unrealized depreciation on foreign currency exchange contracts | 1,302 | |
Payable upon return of securities loaned | 15,579 | |
Total liabilities | 19,601 | |
Net Assets | $ | 810,309 |
See accompanying notes which are an integral part of the financial statements.
754 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 5,569 | |
Accumulated net realized gain (loss) | (98,862 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 52,784 | ||
Futures contracts | 688 | ||
Foreign currency-related transactions | 55 | ||
Shares of beneficial interest | 871 | ||
Additional paid-in capital | 849,204 | ||
Net Assets | $ | 810,309 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R6(#) | $ | 9.30 | |
Class R6 — Net assets | $ | 122,267 | |
Class R6 — Shares outstanding ($.01 par value) | 13,142 | ||
Net asset value per share: Class S(#) | $ | 9.30 | |
Class S — Net assets | $ | 72,176,080 | |
Class S — Shares outstanding ($.01 par value) | 7,759,266 | ||
Net asset value per share: Class T(#) | $ | 9.31 | |
Class T — Net assets | $ | 984,532 | |
Class T — Shares outstanding ($.01 par value) | 105,722 | ||
Net asset value per share: Class Y(#) | $ | 9.30 | |
Class Y — Net assets | $ | 737,026,554 | |
Class Y — Shares outstanding ($.01 par value) | 79,233,955 | ||
Amounts in thousands | |||
(^) Foreign currency holdings - cost | $ | 7,230 | |
(*) Securities on loan included in investments | $ | 14,807 | |
(>) Investments in affiliates, U.S. Cash Management Fund and U.S. Cash Collateral Fund | $ | 40,902 | |
(a) Cash Collateral for Futures | $ | 3,700 | |
(b) Due to Broker for Futures | $ | 700 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 755
Russell Investment Company
Select International Equity Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Dividends | $ | 11,431 | |
Dividends from affiliated funds | 77 | ||
Securities lending income (net) | 69 | ||
Securities lending income from affiliated funds (net) | 18 | ||
Less foreign taxes withheld | (1,086 | ) | |
Total investment income | 10,509 | ||
Expenses | |||
Advisory fees | 1,711 | ||
Administrative fees | 184 | ||
Custodian fees | 139 | ||
Transfer agent fees - Class R6 | —** | ||
Transfer agent fees - Class S | 20 | ||
Transfer agent fees - Class T | 1 | ||
Transfer agent fees - Class Y | 16 | ||
Professional fees | 42 | ||
Registration fees | 43 | ||
Trustees’ fees | 13 | ||
Printing fees | 10 | ||
Miscellaneous | 8 | ||
Expenses before reductions | 2,187 | ||
Expense reductions | (411 | ) | |
Net expenses | 1,776 | ||
Net investment income (loss) | 8,733 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | (6,327 | ) | |
Futures contracts | 1,465 | ||
Foreign currency-related transactions | 224 | ||
Net realized gain (loss) | (4,638 | ) | |
Net change in unrealized appreciation (depreciation) on: | |||
Investments (net of deferred tax liability for foreign capital gains taxes) | 74,945 | ||
Futures contracts | 125 | ||
Foreign currency-related transactions | 1,017 | ||
Net change in unrealized appreciation (depreciation) | 76,087 | ||
Net realized and unrealized gain (loss) | 71,449 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 80,182 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
756 Select International Equity Fund
Russell Investment Company
Select International Equity Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 8,733 | $ | 20,754 | ||
Net realized gain (loss) | (4,638 | ) | (86,880 | ) | ||
Net change in unrealized appreciation (depreciation) | 76,087 | 40,760 | ||||
Net increase (decrease) in net assets from operations | 80,182 | (25,366 | ) | |||
Distributions | ||||||
From net investment income | ||||||
Class R6 | (3 | ) | — | |||
Class S | (68 | ) | (33 | ) | ||
Class T | (19 | ) | (76 | ) | ||
Class Y | (17,410 | ) | (22,981 | ) | ||
Net decrease in net assets from distributions | (17,500 | ) | (23,090 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (1,968 | ) | (68,393 | ) | ||
Total Net Increase (Decrease) in Net Assets | 60,714 | (116,849 | ) | |||
Net Assets | ||||||
Beginning of period | 749,595 | 866,444 | ||||
End of period | $ | 810,309 | $ | 749,595 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 5,569 | $ | 14,336 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 757
Russell Investment Company
Select International Equity Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class R6(1) | ||||||||||||
Proceeds from shares sold | — | $ | — | 13 | $ | 100 | ||||||
Proceeds from reinvestment of distributions | —** | 3 | — | — | ||||||||
Payments for shares redeemed | — | — | — | — | ||||||||
Net increase (decrease) | —** | 3 | 13 | 100 | ||||||||
Class S | ||||||||||||
Proceeds from shares sold | 7,605 | 68,308 | 237 | 1,985 | ||||||||
Proceeds from reinvestment of distributions | 8 | 68 | 4 | 33 | ||||||||
Payments for shares redeemed | (147 | ) | (1,332 | ) | (132 | ) | (1,140 | ) | ||||
Net increase (decrease) | 7,466 | 67,044 | 109 | 878 | ||||||||
Class T | ||||||||||||
Proceeds from shares sold | 33 | 289 | 70 | 589 | ||||||||
Proceeds from reinvestment of distributions | 2 | 19 | 9 | 76 | ||||||||
Payments for shares redeemed | (30 | ) | (265 | ) | (276 | ) | (2,289 | ) | ||||
Net increase (decrease) | 5 | 43 | (197 | ) | (1,624 | ) | ||||||
Class Y | ||||||||||||
Proceeds from shares sold | 2,710 | 23,498 | 9,715 | 79,026 | ||||||||
Proceeds from reinvestment of distributions | 2,056 | 17,410 | 2,713 | 22,981 | ||||||||
Payments for shares redeemed | (12,392 | ) | (109,966 | ) | (19,942 | ) | (169,754 | ) | ||||
Net increase (decrease) | (7,626 | ) | (69,058 | ) | (7,514 | ) | (67,747 | ) | ||||
Total increase (decrease) | (155 | ) | $ | (1,968 | ) | (7,589 | ) | $ | (68,393 | ) |
** Less than 500 shares.
(1) For the period March 1, 2016 (commencement of operations) to October 31, 2016.
See accompanying notes which are an integral part of the financial statements.
758 Select International Equity Fund
(This page intentionally left blank)
Russell Investment Company
Select International Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | ||||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | ||||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | $ | |||||||||||
Period | (a)(d) | Gain (Loss) | Operations | Investment Income | Total Distributions | |||||||||||
Class R6 | ||||||||||||||||
April 30, 2017* | 8.59 | .10 | .81 | .91 | (.20 | ) | (.20 | ) | ||||||||
October 31, 2016(8) | 7.79 | .19 | .61 | .80 | — | — | ||||||||||
Class S | ||||||||||||||||
April 30, 2017* | 8.58 | .20 | .71 | .91 | (.19 | ) | (.19 | ) | ||||||||
October 31, 2016 | 9.12 | .21 | (.52 | ) | (.31 | ) | (.23 | ) | (.23 | ) | ||||||
October 31, 2015(5) | 9.07 | .23 | (.18 | ) | .05 | — | — | |||||||||
Class T | ||||||||||||||||
April 30, 2017* | 8.59 | .10 | .82 | .92 | (.20 | ) | (.20 | ) | ||||||||
October 31, 2016 | 9.14 | .22 | (.52 | ) | (.30 | ) | (.25 | ) | (.25 | ) | ||||||
October 31, 2015(5) | 9.07 | .22 | (.15 | ) | .07 | — | — | |||||||||
Class Y | ||||||||||||||||
April 30, 2017* | 8.59 | .10 | .81 | .91 | (.20 | ) | (.20 | ) | ||||||||
October 31, 2016 | 9.13 | .23 | (.52 | ) | (.29 | ) | (.25 | ) | (.25 | ) | ||||||
October 31, 2015 | 9.42 | .29 | (.52 | ) | (.23 | ) | (.06 | ) | (.06 | ) | ||||||
October 31, 2014(4) | 10.00 | .05 | (.63 | ) | (.58 | ) | — | — | ||||||||
See accompanying notes which are an integral part of the financial statements.
760 Select International Equity Fund
% | % | % | ||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||
End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||
Period | Return(b) | (000 | ) | Gross(e) | Net(d)(e) | Net Assets(d)(e) | Turnover Rate(b) | |||||||
9.30 | 10.84 | 122 | .62 | .49 | 2.26 | 19 | ||||||||
8.59 | 10.27 | 110 | .62 | .47 | 3.32 | 57 | ||||||||
9.30 | 10.84 | 72,176 | .74 | .66 | 4.50 | 19 | ||||||||
8.58 | (3.35 | ) | 2,518 | .78 | .64 | 2.49 | 57 | |||||||
9.12 | .55 | 1,679 | .84 | .64 | 2.91 | 25 | ||||||||
9.31 | 10.89 | 985 | .76 | .51 | 2.22 | 19 | ||||||||
8.59 | (3.25 | ) | 867 | .79 | .49 | 2.62 | 57 | |||||||
9.14 | .77 | 2,724 | .84 | .49 | 2.77 | 25 | ||||||||
9.30 | 10.86 | 737,026 | .57 | .46 | 2.24 | 19 | ||||||||
8.59 | (3.11 | ) | 746,100 | .59 | .44 | 2.67 | 57 | |||||||
9.13 | (2.43 | ) | 862,041 | .65 | .44 | 3.07 | 25 | |||||||
9.42 | (5.80 | ) | 111,901 | .87 | .44 | 1.90 | 7 |
See accompanying notes which are an integral part of the financial statements.
Select International Equity Fund 761
Russell Investment Company
Select International Equity Fund
Related Party Transactions, Fees and Expenses (Unaudited)
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 252,459 |
Administration fees | 31,887 | |
Transfer agent fees | 14,049 | |
Trustee fees | 3,465 | |
$ | 301,860 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||
U.S. Cash Collateral Fund | $ | 701 | $ | 75,573 | $ | 60,695 | $ | — | $ — | $ | 15,579 | $ | 18 | $ | — | |||
U.S. Cash Management Fund | 16,124 | 192,552 | 183,351 | — | (2) | 25,323 | 77 | — | ||||||||||
$ | 16,825 | $ | 268,125 | $ | 244,046 | $ | — | $ (2) | $ | 40,902 | $ | 95 | $ | — |
Federal Income Taxes (Unaudited)
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 770,353,236 | |||
Unrealized Appreciation | $ | 67,486,127 | |||
Unrealized Depreciation | (25,436,231 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 42,049,896 |
See accompanying notes which are an integral part of the financial statements.
762 Select International Equity Fund
Russell Investment Company
Notes to Schedules of Investments — April 30, 2017 (Unaudited)
Footnotes:
(Æ) Nonincome-producing security.
(Ï) Forward commitment.
(Ê) Adjustable or floating rate security. Rate shown reflects rate in effect at period end.
(ƒ) Perpetual floating rate security. Rate shown reflects rate in effect at period end.
(ö) Real Estate Investment Trust (REIT).
(µ) Bond is insured by a guarantor.
(Ø) In default.
(ç) At amortized cost, which approximates market value.
(~ ) Rate noted is yield-to-maturity from date of acquisition.
(æ) Pre-refunded: These bonds are collateralized by U.S. Treasury securities, which are held in escrow by a trustee and used to pay
principal and interest in the tax-exempt issue and to retire the bonds in full at the earliest refunding date.
(§) All or a portion of the shares of this security are pledged as collateral in connection with futures contracts purchased (sold) or swap
contracts entered into by the Fund.
(x) The security is purchased with the cash collateral from securities loaned.
(Ñ) All or a portion of the shares of this security are on loan.
(Þ) Restricted security. Security may have contractual restrictions on resale, may have been offered in a private placement transaction,
and is not registered under the Securities Act of 1933.
(Å) Illiquid and restricted security.
(Û) All or a portion of the shares of this security are pledged as collateral in connection with securities sold short.
(ÿ) Notional Amount in thousands.
(8) Unrounded units.
(å) Currency balances were pledged in connection with futures contracts purchased (sold), options written, or swaps entered into by the
Fund. See Statement of Assets and Liabilities.
(ì ) All or a portion of the shares of this security are pledged as collateral in connection with options written contracts.
(v) Loan agreement still pending. Rate not available at period end.
Abbreviations:
ADR - American Depositary Receipt
ADS - American Depositary Share
BBR - Bank Bill Rate
BBSW - Bank Bill Swap Reference Rate
BUBOR – Budapest Interbank Offered Rate
CIBOR - Copenhagen Interbank Offered Rate
CME - Chicago Mercantile Exchange
CMO - Collateralized Mortgage Obligation
CVO - Contingent Value Obligation
EMU - European Economic and Monetary Union
EURIBOR - Euro Interbank Offered Bank
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
GSCI – Goldman Sachs Commodity Index
HIBOR – Hong Kong Interbank Offer Rate
JIBAR – Johannesburg Interbank Agreed Rate
KSDA – Korean Securities Dealers Association
LIBOR - London Interbank Offered Rate
MIBOR – Mumbai Inter-Bank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
PIK - Payment in Kind
REMIC - Real Estate Mortgage Investment Conduit
STIBOR – Stockholm Interbank Offered Rate
STRIP - Separate Trading of Registered Interest and Principal of Securities
SFE - Sydney Futures Exchange
TBA - To Be Announced Security
UK - United Kingdom
WTI – West Texas Intermediate
Notes to Schedules of Investments 763
Russell Investment Company
Notes to Schedules of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Abbreviations: | ||
ARS - Argentine peso | HKD - Hong Kong dollar | PKR - Pakistani rupee |
AUD - Australian dollar | HUF - Hungarian forint | PLN - Polish zloty |
BRL - Brazilian real | IDR - Indonesian rupiah | RON – Romanian New Leu |
CAD - Canadian dollar | ILS - Israeli shekel | RUB - Russian ruble |
CHF - Swiss franc | INR - Indian rupee | SEK - Swedish krona |
CLP - Chilean peso | ISK - Icelandic krona | SGD - Singapore dollar |
CNH – Chinese offshore spot | ITL - Italian lira | SKK - Slovakian koruna |
CNY - Chinese renminbi yuan | JPY - Japanese yen | THB - Thai baht |
COP - Colombian peso | KES - Kenyan schilling | TRY - Turkish lira |
CRC - Costa Rican colon | KRW - South Korean won | TWD - Taiwanese dollar |
CZK - Czech koruna | MXN - Mexican peso | USD - United States dollar |
DKK - Danish krone | MYR - Malaysian ringgit | UYU – Uruguayan peso |
DOP - Dominican peso | NOK - Norwegian krone | VEB - Venezuelan bolivar |
EGP - Egyptian pound | NGN – Nigerian naira | VND - Vietnamese dong |
EUR - Euro | NZD - New Zealand dollar | ZAR - South African rand |
GBP - British pound sterling | PEN - Peruvian nuevo sol | |
GHS - Ghana cedi | PHP - Philippine peso |
764 Notes to Schedules of Investments
Russell Investment Company
Notes to Financial Highlights — April 30, 2017 (Unaudited)
(*) For the period April 30, 2017 (Unaudited).
(1) For the period February 7, 2012 (commencement of operations) to October 31, 2012.
(2) For the period August 7, 2012 (commencement of operations) to October 31, 2012.
(3) For the period August 16, 2012 (commencement of operations) to October 31, 2012.
(4) For the period August 1, 2014 (commencement of operations) to October 31, 2014.
(5) For the period January 5, 2015 (commencement of operations) to October 10, 2015.
(6) For the period May 4, 2015 (commencement of operations) to October 31, 2015.
(7) For the period June 2, 2015 (commencement of operations) to October 31, 2015.
(8) For the period March 1, 2016 (commencement of operations) to April 30, 2016.
(9) For the period November 1, 2014 to May 1, 2015 (final redemption).
(10) For the period March 17, 2017 (commencement of operations) to April 30, 2017.
(11) For the period March 8, 2017 (commencement of operations) to April 30, 2017.
(a) Average daily shares outstanding were used for this calculation.
(b) The ratios for periods less than one year are not annualized.
(c) Total return for Class A does not reflect a front-end sales charge. If sales charges were included, the total return would be lower.
(d) May reflect amounts waived and/or reimbursed by Russell Investment Management, LLC (“RIM”) and /or Russell Investments Fund Services, LLC
(“RIFUS”).
(e) The ratios for periods less than one year are annualized.
(f) Less than $.01 per share.
(g) For the U.S. Defensive Equity Fund, the respective annualized net expense ratios, not including the dividends and interest expense from short sales,
were as follows:
For the period ended | Class A | Class C | Class E | Class I | Class S | Class Y | ||||||
April 30, 2017 | 1.36 | % | 2.11 | % | 1.36 | % | 1.04 | % | 1.10 | % | 0.91 | % |
October 31, 2016 | 1.07 | % | 1.83 | % | 1.08 | % | 0.75 | % | 0.83 | % | 0.65 | % |
October 31, 2015 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||
October 31, 2014 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||
October 31, 2013 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||
October 31, 2012 | 1.09 | % | 1.83 | % | 1.03 | % | 0.76 | % | 0.83 | % | 0.65 | % |
For the U.S. Dynamic Equity Fund, the respective annualized net expense ratios, not including the dividends and interest expense from short sales,
were as follows:
For the period ended | Class A | Class C | Class E | Class I | Class S | Class Y | ||||||
April 30, 2017 | 1.54 | % | 2.29 | % | 1.54 | % | 1.22 | % | 1.28 | % | 1.09 | % |
October 31, 2016 | 1.37 | % | 2.12 | % | 1.37 | % | 1.04 | % | 1.12 | % | 0.93 | % |
October 31, 2015 | 1.36 | % | 2.11 | % | 1.36 | % | 1.03 | % | 1.11 | % | 0.91 | % |
October 31, 2014 | 1.34 | % | 2.10 | % | 1.35 | % | 1.00 | % | 1.10 | % | 0.90 | % |
October 31, 2013 | 1.35 | % | 2.11 | % | 1.36 | % | 0.98 | % | 1.11 | % | 0.91 | % |
For the U.S. Strategic Equity Fund, the respective annualized net expense ratios, not including the dividends and interest expense from short sales,
were as follows:
For the period ended | Class A | Class C | Class E | Class S | Class T | |||||
April 30, 2017 | 1.06 | % | 1.81 | % | 1.06 | % | 0.81 | % | 0.71 | % |
October 31, 2016 | 1.02 | % | 1.77 | % | 1.02 | % | 0.77 | % | — | |
October 31, 2015 | 1.02 | % | 1.77 | % | 1.02 | % | 0.77 | % | — | |
October 31, 2014 | 1.03 | % | 1.78 | % | 1.03 | % | 0.78 | % | — | |
October 31, 2013 | 1.10 | % | 1.85 | % | 1.10 | % | 0.85 | % | — | |
October 31, 2012 | 1.10 | % | 1.85 | % | 1.10 | % | 0.85 | % | — |
(h) Class Y closed on May 1, 2015 and reopened on February 28, 2017. For 2016, there were not outstanding shares.
(i) Less than .005% of average net assets.
(j) No shares were outstanding since May 1, 2015.
(k) Subsequent to the issuance of the October 31, 2015 financial statements, Management determined that the portfolio turnover rate for this Fund was
incorrectly presented within the financial statements as a result of including the impact of securities transferred between Money Managers in the
calculation of portfolio turnover rates. Management evaluated the impact of presenting the incorrect portfolio turnover rate and concluded that the
October 31, 2015 financial statements were not materially misstated. However, Management concluded it was appropriate to present the correct rate
in this and future filings and accordingly, the portfolio turnover rate has been revised from previously presented.
Notes to Financial Highlights 765
Russell Investment Company
Notes to Financial Highlights, continued — April 30, 2017 (Unaudited)
(l) Gross and Net Expense Ratios for the period ended October 31, 2016 include a reimbursement from State Street for the overbilling of custody
expenses in prior years. Without the reimbursement, each class of the Fund listed below would have been higher by the amount listed below. All
other Funds with fee reimbursements were less than 0.005%.
Impact of the fee reimbursement on | ||
Fund | gross and net expense ratios | |
Russell U.S. Core Equity Fund | 0.03 | % |
Russell U.S. Defensive Equity Fund | 0.02 | % |
Russell U.S. Small Cap Equity Fund | 0.01 | % |
Russell International Developed Markets Fund | 0.04 | % |
Russell Emerging Markets Fund | 0.01 | % |
Russell Tax-Managed U.S. Mid & Small Cap Fund | 0.01 | % |
Russell Investment Grade Bond Fund | 0.02 | % |
Russell Short Duration Bond Fund | 0.01 | % |
(†) For the Cayman Commodity Strategies Fund Ltd. (wholly-owned subsidiary). Accordingly, all interfund balances and transactions have been
eliminated. Refer to note 3 in the Notes to the Financial Statements.
766 Notes to Financial Highlights
Russell Investment Company
Notes to Financial Statements — April 30, 2017 (Unaudited)
1. Organization
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 42 different investment
portfolios referred to as funds (each a “Fund” and collectively the “Funds”). These financial statements report on 28 of these
Funds. The Investment Company is registered under the Investment Company Act of 1940, as amended (“Investment Company
Act”), as an open-end management investment company. It is organized and operated as a Massachusetts business trust under a
Second Amended and Restated Master Trust Agreement dated October 1, 2008, as amended (“Master Trust Agreement”), and the
provisions of Massachusetts law governing the operation of a Massachusetts business trust. The Investment Company’s Master Trust
Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest. Each of the
Funds, except the Unconstrained Total Return Fund, is diversified. Under the Investment Company Act, a diversified company
is defined as a management company which meets the following requirements: at least 75% of the value of its total assets is
represented by cash and cash items (including receivables), government securities, securities of other investment companies, and
other securities for the purposes of this calculation limited in respect of any one issuer to an amount not greater in value than five
percent of the value of the total assets of such management company and to not more than 10% of the outstanding voting securities
of such issuer.
2. Significant Accounting Policies
The Funds’ financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”)
which require the use of management estimates and assumptions at the date of the financial statements. Actual results could differ
from those estimates. The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting
guidance applicable to investment companies. The following is a summary of the significant accounting policies consistently
followed by each Fund in the preparation of its financial statements.
In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, “final
rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final
rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial
statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017.
Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Funds’
financial statements and related disclosures.
Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair
value procedures. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell
Investments Fund Services, LLC ("RIFUS").
U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to
valuation methods and requires a separate disclosure of the fair value hierarchy for each major category of assets and liabilities,
that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy
are defined as follows:
• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.
• Level 2 — Inputs other than quoted prices included within Level 1 that are observable, which may include, but are not
limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets
or liabilities in markets that are not active, and inputs such as interest rates, yield curves, implied volatilities, credit spreads
or other market corroborated inputs.
• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available, which may include assumptions made by RIFUS, acting at the discretion of the Board,
that are used in determining the fair value of investments.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for
example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and
other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or
unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised
Notes to Financial Statements 767
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that
is significant to the fair value measurement in its entirety.
The valuation techniques and significant inputs used in determining the fair market values of financial instruments categorized as
Level 1 and Level 2 of the fair value hierarchy are as follows:
Equity securities, including common and preferred stock, short securities and restricted securities that are traded on a national
securities exchange (or reported on the NASDAQ national market), are stated at the last reported sales price on the day of valuation
or official closing price, as applicable. To the extent these securities are actively traded, and valuation adjustments are not applied,
they are categorized as Level 1 of the fair value hierarchy. Preferred stock and other equities traded on inactive markets or valued
by reference to similar instruments are categorized as Level 2 of the fair value hierarchy. Certain foreign equity securities may
be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday
trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, exchange-traded funds, and
the movement of certain indexes of securities, based on the statistical analysis of historical relationships. Foreign equity securities
prices as described above are categorized as Level 2 of the fair value hierarchy.
Fixed income securities including corporate, convertible, U.S. government agency, municipal bonds and notes, U.S. treasury
obligations, sovereign issues, bank loans, bank notes and non-U.S. bonds are normally valued by pricing service providers that use
broker dealer quotations or valuation estimates from their internal pricing models. The pricing service providers’ internal models
use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads and
default rates. Such fixed income securities that use pricing service internal models as described above are categorized as Level
2 of the fair value hierarchy. Such fixed income securities that use broker dealer quotations are categorized as Level 3 of the fair
value hierarchy.
Fixed income securities purchased on a delayed-delivery basis and marked-to-market daily until settlement at the forward settlement
date are categorized as Level 2 of the fair value hierarchy.
Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These
securities are also normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their
internal pricing models. The pricing models for these securities usually consider tranche-level attributes, including estimated cash
flows of each tranche, market-based yield spreads for each tranche, and current market data, as well as incorporate deal collateral
performance, as available. Mortgage and asset-backed securities that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy.
Investments in privately held investment funds will be valued based upon the net asset value (“NAV”) of such investments.
The Funds have adopted the authoritative guidance under U.S. GAAP for estimating the fair value of investments in funds that
have calculated NAV per share in accordance with the specialized accounting guidance for investment companies. Accordingly,
the Funds estimate the fair value of an investment in a fund using the NAV per share without further adjustment as a practical
expedient, if the NAV per share of the investment is determined in accordance with the specialized accounting guidance for
investment companies as of the reporting entity’s measurement date.
Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair market
value. These investments are categorized as Level 2 of the fair value hierarchy.
Derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements
that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors.
Derivatives may be classified into two groups depending upon the way that they are traded: privately traded over-the-counter
(“OTC”) derivatives that do not go through an exchange or intermediary and exchange-traded derivatives that are traded through
specialized derivatives exchanges or other regulated exchanges. OTC derivatives are normally valued on the basis of broker dealer
quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative
instrument can be estimated by a pricing service provider using a series of techniques, including simulation pricing models.
The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest
rates, yield curves, dividends and exchange rates. OTC derivatives that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy, with the exception of foreign currency spot contracts which
768 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
are categorized as Level 1 of the fair value hierarchy. OTC derivatives that use broker dealer quotations are categorized as level 3 of
the fair value hierarchy. Exchange-traded derivatives are valued based on the last reported sales price on the day of valuation and
are categorized as Level 1 of the fair value hierarchy.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at
the daily settlement price determined by the respective exchange. For centrally cleared credit default swaps, the clearing facility
requires its members to provide actionable levels across complete term structures. These levels along with external third party
prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally
cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index
swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are
categorized as Level 2 of the fair value hierarchy.
Events or circumstances affecting the values of Fund securities that occur between the closing of the principal markets on which
they trade and the time the NAV of Fund shares is determined may be reflected in the calculation of NAV for each applicable
Fund when the Fund deems that the particular event or circumstance would materially affect such Fund’s NAV. Funds that invest
primarily in frequently traded exchange-listed securities will use fair value pricing in limited circumstances since reliable market
quotations will often be readily available. Funds that invest in foreign securities use fair value pricing daily as events may occur
between the close of foreign markets and the time of pricing. Although there are observable inputs assigned on a security level,
prices are derived from factors using proprietary models or matrix pricing. For this reason, fair value factors will cause movement
between Levels 1 and 2. Significant events that could trigger fair value pricing of one or more securities include: a company
development such as a material business development; a natural disaster or emergency situation; or an armed conflict.
The NAV of a Fund’s portfolio that includes foreign securities may change on days when shareholders will not be able to purchase
or redeem Fund shares, since foreign securities can trade on non-business days.
For movements between the levels within the fair value hierarchy, the Funds have adopted a policy of recognizing the transfers as
of year end.
The 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, Tax-Managed U.S. Large Cap, Tax-Managed U.S.
Mid & Small Cap, Tax-Managed International Equity, Short Duration Bond, Tax-Exempt High Yield Bond, Tax-Exempt Bond,
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 had no transfers between Levels 1, 2 and 3
for the period ended April 30, 2017, other than those caused by application of fair value factors.
The Global Opportunistic Credit, Strategic Bond, Investment Grade Bond, and Unconstrained Total Return Funds had transfers out
of Level 3 into Level 2 representing financial instruments for which pricing had been determined using unobservable inputs that
became observable. The amounts transferred were as follows:
Global Opportunistic Credit Fund | $ | 3,062,325 |
Strategic Bond Fund | 83,763 | |
Investment Grade Bond Fund | 904,820 | |
Unconstrained Total Return Fund | 807,597 |
The Emerging Markets Fund had transfers out of Level 3 into Level 1 representing financial instruments for which pricing had been
determined using unobservable inputs that became observable. The amounts transferred were as follows:
Emerging Markets Fund | $ | 839,637 |
The Emerging Markets, Strategic Bond and, Investment Grade Bond Funds had transfers out of Level 2 into Level 3 representing
financial instruments for which pricing had been determined using observable inputs that became unobservable. The amounts
transferred were as follows:
Emerging Markets Fund | $ | 1,375,076 |
Strategic Bond Fund | 12,787,569 | |
Investment Grade Bond Fund | 262,715 |
Notes to Financial Statements 769
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Level 3 Fair Value Investments
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of
the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available, or are not reliable, are valued at fair value as
determined in good faith by RIFUS and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not
readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or
broker quotes). When RIFUS applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV,
securities will not be priced on the basis of quotes from the primary market in which they are traded, but instead may be priced by
another method that RIFUS believes accurately reflects fair value and will be categorized as Level 3 of the fair value hierarchy. Fair
value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot
guarantee that fair values determined by RIFUS would accurately reflect the price that a Fund could obtain for a security if it were
to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ
from the value that would be realized if the security was sold.
RIFUS employs third party pricing vendors to provide fair value measurements. RIFUS oversees third-party pricing service
providers in order to support the valuation process throughout the year.
The significant unobservable input used in fair value measurement of certain of the Funds’ preferred equity securities is the
redemption value calculated on a fully-diluted basis if converted to common stock. Significant increases or decreases in the
redemption value would have a direct and proportional impact to fair value.
The significant unobservable input used in the fair value measurement of certain Funds’ debt securities is the yield to worst ratio.
Significant increases (decreases) in the yield to worst ratio would result in a lower (higher) fair value measurement.
These significant unobservable inputs are further disclosed in the Presentation of Portfolio Holdings for each respective Fund as
applicable.
If third party evaluated vendor pricing is neither available nor deemed to be indicative of fair value, RIFUS may elect to obtain
indicative market quotations (“broker quotes”) directly from the broker or passed through from a third party vendor. In the event
that the source of fair value is from a single source broker quote, these securities are classified as Level 3 per the fair value
hierarchy. Broker quotes are typically received from established market participants. Although independently received on a daily
basis, RIFUS does not have the transparency to view the underlying inputs which support the broker quotes. Significant changes
in the broker quote would have direct and proportional changes in the fair value of the security. There is a third-party pricing
exception to the quantitative disclosure requirement when prices are not determined by the reporting entity. RIFUS is exercising
this exception and has made a reasonable attempt to obtain quantitative information from the third party pricing vendors regarding
the unobservable inputs used.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances
for reported fair values that present changes attributable to total realized and unrealized gains or losses, purchases and sales, and
transfers in/out of the Level 3 category during the period. Additionally, U.S. GAAP requires quantitative information regarding the
significant unobservable inputs used in the determination of fair value of assets categorized as Level 3 in the fair value hierarchy. In
accordance with the requirements of U.S. GAAP, a fair value hierarchy, a Level 3 reconciliation and an additional disclosure about
fair value measurements, if any, has been included in the Presentation of Portfolio Holdings for each respective Fund.
Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the
financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities
transactions, if applicable, are recorded on the basis of specific identified cost incurred within a particular Fund.
Investment Income
Dividend income is recorded net of applicable withholding taxes on the ex-dividend date, except that certain dividends from
foreign securities are recorded as soon as the Funds are informed of the dividend, subsequent to the ex-dividend date. To the
extent the dividend represents a return of capital or capital gain for tax purposes, reclassifications are made which may be based on
management's estimates. Interest income is recorded daily on the accrual basis. The Funds classify gains and losses realized on
prepayments received on mortgage-backed securities as an adjustment to interest income. All premiums and discounts, including
770 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
original issue discounts, are amortized/ accreted using the effective interest method. Debt obligation securities may be placed in
a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable
when the collection of all or a portion of interest has become doubtful.
Federal Income Taxes
Since the Investment Company is a Massachusetts business trust, each Fund is a separate corporate taxpayer and determines its
net investment income and capital gains (or losses) and the amounts to be distributed to each Fund’s shareholders without regard
to the income and capital gains (or losses) of the other Funds.
For each year, each Fund intends to qualify or continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended (the “Code”) and intends to distribute all of its taxable income and capital gains.
Therefore, no federal income tax provision is required for the Funds.
The Commodity Strategies Fund intends to gain exposure indirectly to commodities markets by investing in a wholly-owned
subsidiary which is organized as a company under the laws of the Cayman Islands and may invest in commodity index-linked
instruments and other commodity-linked instruments and derivative instruments. In order for the Fund to qualify as regulated
investment company under Subchapter M of the Code, the Fund must derive at least 90 percent of its gross income each taxable
year from certain qualifying sources of income. The Internal Revenue Service (“IRS”) has issued a revenue ruling which holds that
income derived from commodity-linked swaps is not qualifying income under Subchapter M of the Code. However, the IRS has
also issued private letter rulings to other taxpayers in which the IRS specifically concluded that income from certain commodity-
linked notes is qualifying income and that income derived from a wholly-owned subsidiary will also constitute qualifying income,
even if the subsidiary itself owns commodity-linked swaps and other commodity-linked derivative instruments. Although those
private letter rulings can be relied on only by the taxpayers to whom they were issued, based on the reasoning in such rulings, the
Commodity Strategies Fund may seek to gain exposure to the commodity markets primarily through investments in commodity-
linked notes and, through investments in its Subsidiary (as defined in note 3), commodity-linked swaps and other commodity-
linked derivative instruments. The IRS recently issued a revenue procedure, which states that the IRS will not in the future
issue private letter rulings that would require a determination of whether an asset (such as a commodity index-linked note) is a
“security” under the 1940 Act. The IRS also recently issued proposed regulations that, if finalized, would generally treat the Funds’
income inclusions with respect to a subsidiary as qualifying income only if there is a distribution out of the earnings and profits
of a subsidiary that are attributable to such income inclusion. The proposed regulations, if adopted, would apply to taxable years
beginning on or after 90 days after the regulations are published as final. There can be no assurance that the IRS will issue the
private letter ruling previously requested by the Commodity Strategies Fund, or that the IRS will not change its position that income
derived from commodity-linked notes and wholly-owned subsidiaries is qualifying income. The ability of the Commodity Strategies
Fund to qualify for regulated investment company status under the Code could be jeopardized if it is unable to treat its income
from commodity-linked notes and a wholly-owned subsidiary as qualifying income. Furthermore, the tax treatment of commodity-
linked notes, other commodity-linked derivatives and the Commodity Strategy Fund's investments in its Subsidiary may otherwise
be adversely affected by future legislation, Treasury Regulation and/or guidance issued by the IRS that could affect the character,
timing and/or amount the Fund's taxable income or any gains and distributions made by the Fund.
The Funds comply with the authoritative guidance for uncertainty in income taxes which requires management to determine whether
a tax position of the Funds is more likely than not to be sustained upon examination, including resolution of any related appeals or
litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the
tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being
realized upon ultimate settlement with the relevant taxing authority. Management determined that no accruals need to be made in
the financial statements due to uncertain tax positions. Management continually reviews and adjusts the Funds’ liability for income
taxes based on analyses of tax laws and regulations, as well as their interpretations, and other relevant factors.
Each Fund files a U.S. tax return. At April 30, 2017, the Funds had recorded no liabilities for net unrecognized tax benefits
relating to uncertain income tax positions they have taken or expect to take in future tax returns. While the statute of limitations
remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ended October 31, 2014 through October 31, 2016,
no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Notes to Financial Statements 771
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Dividends and Distributions to Shareholders
For all Funds, income and capital gain distributions, if any, are recorded on the ex-dividend date. Income distributions are generally
declared and paid according to the following schedule:
Declared | Payable | Funds |
Monthly | Early in the following month | Global Opportunistic Credit, Unconstrained Total Return, |
Strategic Bond, Investment Grade Bond, Short Duration Bond, | ||
Tax-Exempt High Yield Bond and Tax-Exempt Bond Funds | ||
Quarterly | April, July, October and December | 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, Global Infrastructure, Global Real Estate Securities, | ||
Multi-Strategy Income, Multi-Asset Growth Strategy, Strategic | ||
Call Overwriting and Select U.S. Equity Funds | ||
Annually | Mid-December | 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 and Select International Equity | ||
Funds |
The Funds intend to distribute substantially all of the distributions they receive from real estate investment trust ("REIT")
investments, less expenses, as well as income from other investments. Such distributions may be comprised of income, return of
capital, and capital gains. The Funds may also realize capital gains on the sale of its REIT shares and other investments.
Capital gain distributions are generally declared and paid annually. An additional distribution may be paid by the Funds to avoid
imposition of federal income and excise tax on any remaining undistributed capital gains and net investment income.
The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax
regulations which may differ from U.S. GAAP. As a result, net investment income and net realized gain (or loss) on investments
and foreign currency-related transactions for a reporting period may differ significantly from distributions during such period. The
differences between tax regulations and U.S. GAAP primarily relate to investments in options, futures, forward contracts, swap
contracts, passive foreign investment companies, foreign-denominated investments, mortgage-backed securities, certain securities
sold at a loss, wash sale deferrals and capital loss carryforwards. Accordingly, the Funds may periodically make reclassifications
among certain of their capital accounts without impacting their NAVs.
Expenses
The Funds pay their own expenses other than those expressly assumed by Russell Investment Management, LLC (“RIM”), the
Funds’ adviser, or RIFUS. Most expenses can be directly attributed to the individual Funds. Expenses which cannot be directly
attributed to a specific Fund are allocated among all Funds principally based on their relative net assets.
Class Allocation
Each of the Funds presented herein may offer certain of the following classes of shares: Class A, Class A1, Class A2, Class A3,
Class C, Class C1, Class E, Class I, Class R6, Class S, Class T and Class Y. All share classes have identical voting, dividend,
liquidation and other rights, preferences, powers, restrictions, limitations, qualifications and the same terms and conditions. The
separate classes of shares differ principally in the applicable transfer agent fees, distribution fees and shareholder servicing fees.
Shareholders of each class bear certain expenses that pertain to that particular class. Realized and unrealized gains (losses),
investment income and expenses, with the exception of class level expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
Foreign Currency Translations
The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts and transactions of the Funds are
translated into U.S. dollars on the following basis:
(a) Fair value of investment securities, other assets and liabilities at the closing rate of exchange on the valuation date.
(b) Purchases and sales of investment securities and income at the closing rate of exchange prevailing on the respective trade
dates of such transactions.
772 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Net realized gains or losses from foreign currency-related transactions arise from: sales and maturities of short-term securities;
sales of foreign currencies; currency gains or losses realized between the trade and settlement dates on securities transactions; the
difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S.
dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions
arise from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in the exchange
rates.
The Funds do not isolate that portion of the results of operations of the Funds that arises as a result of changes in exchange rates
from that portion that arises from changes in market prices of investments during the year. Such fluctuations are included with the
net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Funds do isolate the effects
of changes in foreign exchange rates from the fluctuations arising from changes in market prices for realized gain (or loss) on debt
obligations.
Capital Gains Taxes
The International Developed Markets, Global Equity, Emerging Markets, Tax-Managed International Equity, Global Opportunistic
Credit, Global Infrastructure, Global Real Estate Securities, Multi-Strategy Income, Multi-Asset Growth Strategy and Select
International Equity Funds may be subject to capital gains taxes and repatriation taxes imposed by certain countries in which they
invest. The Funds may record a deferred capital gains tax liability with respect to the unrealized appreciation on foreign securities
for potential capital gains and repatriation taxes as of April 30, 2017. The accrual for capital gains and repatriation taxes is included
in net unrealized appreciation (depreciation) on investments in the Statements of Assets and Liabilities. The amounts related to
capital gains and repatriation taxes are included in net realized gain (loss) on investments in the Statements of Operations for the
following Funds:
Deferred Capital | |||||
Gains Tax | Capital Gains | ||||
Liability | Taxes | ||||
International Developed Markets Fund | $ | 2,169 | 13,495 | ||
Global Equity Fund | 349,930 | — | |||
Emerging Markets Fund | 5,201,252 | 1,554,837 | |||
Tax-Managed International Equity Fund | 238,619 | 516 | |||
Global Opportunistic Credit Fund | 249,099 | 49,722 | |||
Strategic Bond Fund | 92,384 | — | |||
Global Real Estate Securities Fund | 7 | — | |||
Multi-Strategy Income Fund | 25,850 | 8,380 | |||
Multi-Asset Growth Strategy Fund | 18,015 | — |
Derivatives
Certain Funds may invest in derivatives. Derivative securities are instruments or agreements whose value is derived from an
underlying security or index. They include options, futures, swaps and forwards. These instruments offer unique characteristics and
risks that facilitate the Funds’ investment strategies.
The Funds typically use derivatives in three ways: exposing cash to markets, hedging and return enhancement. In addition, certain
Funds may enter into foreign exchange contracts for trade settlement purposes. Certain Funds may pursue their strategy of being
fully invested by exposing cash to the performance of appropriate markets by purchasing securities and/or derivatives.. This is
intended to cause the Funds to perform as though cash were actually invested in those markets.
Hedging may be used by certain Funds to limit or control risks, such as adverse movements in exchange rates and interest rates.
Return enhancement can be accomplished through the use of derivatives in a Fund, including using derivatives as a substitute for
holding physical securities, and using them to express various macro views (e.g., interest rate movements, currency movements,
and macro credit strategies). By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio
characteristics that assist them in meeting their investment objectives. Depending on how the derivatives are structured and
utilized, the risks associated with them may vary widely. These risks include, but are not limited to, market risk, liquidity risk,
leveraging risk, counterparty risk, basis risk, reinvestment risk, political risk, prepayment risk, extension risk, valuation risk and
credit risk.
Notes to Financial Statements 773
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Futures, certain options and cleared swaps are traded or cleared on an exchange or central exchange clearing house. Exchange-
traded or exchange-cleared transactions generally present less counterparty risk to a Fund. The exchange’s clearing house stands
between the Fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the clearing
house and the clearing member. Cleared swap contracts are subject to clearing house rules, including initial and variation margin
requirement, daily settlement of obligations and the clearing house guarantee of payments to the broker. There is, however, still
counterparty risk due to the insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While
clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a
shortfall in the amount of margin held by the broker for its clients. Collateral and margin requirements for exchange-traded or
exchange-cleared derivatives are established through regulation, as well as set by the broker or applicable clearing house. Margin
for exchange-traded and exchange-cleared transactions are detailed in the Statements of Assets and Liabilities as cash held at the
broker for futures contracts and cash held at the broker for swap contracts, respectively. Securities pledged by a Fund for exchange-
traded and exchange-cleared transactions are noted as collateral or margin requirements in the Schedule of Investments. Typically,
the Funds and counterparties are not permitted to sell, repledge, rehypothecate or otherwise use collateral pledged by the other
party unless explicitly permitted by each respective governing agreement.
In December 2015, the SEC proposed new regulations applicable to a mutual fund's use of derivatives. If adopted as proposed, these
regulations could potentially limit or impact a Fund's ability to invest in derivatives and negatively affect the Fund's performance
and ability to pursue its stated investment objectives.
The effects of derivative instruments, categorized by risk exposure, on the Statements of Assets and Liabilities and the Statements
of Operations, for the period ended April 30, 2017, if applicable, are disclosed in the Fair Value of Derivative Instruments table
following each applicable Fund’s Schedule of Investments.
Foreign Currency Exchange Contracts
Certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“FX
contracts”). From time to time, certain Funds may enter into FX contracts to hedge certain foreign currency-denominated assets.
FX contracts are recorded at fair value. Certain risks may arise upon entering into these FX contracts from the potential inability
of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized gain on the FX
contracts, if any, that are disclosed in the Statements of Assets and Liabilities.
For the period ended April 30, 2017, the following Funds entered into foreign currency exchange contracts primarily for the
strategies listed below:
Funds | Strategies |
International Developed Markets Fund | Return enhancement, hedging, exposing cash to markets, and trade settlement |
Global Equity Fund | Return enhancement, hedging, exposing cash to markets, and trade settlement |
Emerging Markets Fund | Return enhancement, hedging, exposing cash to markets, and trade settlement |
Tax-Managed International Equity Fund | Return enhancement, hedging, exposing cash to markets, and trade settlement |
Global Opportunistic Credit Fund | Return enhancement and hedging |
Unconstrained Total Return Fund | Return enhancement and hedging |
Strategic Bond Fund | Return enhancement and hedging |
Investment Grade Bond Fund | Return enhancement and hedging |
Short Duration Bond Fund | Return enhancement and hedging |
Global Infrastructure Fund | Exposing cash to markets and trade settlement |
Global Real Estate Securities Fund | Exposing cash to markets and trade settlement |
Multi-Strategy Income Fund | Return enhancement, hedging, and exposing cash to markets |
Multi-Asset Growth Strategy Fund | Return enhancement and hedging |
Select International Equity Fund | Return enhancement and hedging |
The Funds’ foreign currency contract notional dollar values outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the purpose of this
disclosure, volume is measured by the amounts bought and sold in USD.
774 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Outstanding Contract Amounts Sold | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
International Developed Markets Fund | $ | 999,434,943 | $ | 1,300,061,650 | ||
Global Equity Fund | 725,502,367 | 748,091,252 | ||||
Emerging Markets Fund | 685,557,709 | 625,855,636 | ||||
Tax-Managed International Equity Fund | 185,649,867 | 196,849,577 | ||||
Global Opportunistic Credit Fund | 654,932,382 | 626,241,117 | ||||
Unconstrained Total Return Fund | 137,428,337 | 230,403,853 | ||||
Strategic Bond Fund | 1,617,656,648 | 1,298,637,192 | ||||
Investment Grade Bond Fund | 105,096,692 | 94,964,215 | ||||
Short Duration Bond Fund | 57,059,079 | 45,141,639 | ||||
Global Infrastructure Fund | 67,680,690 | 99,876,208 | ||||
Global Real Estate Securities Fund | 81,964,697 | 35,138,197 | ||||
Multi-Strategy Income Fund | 119,721,876 | 156,949,157 | ||||
Multi-Asset Growth Strategy Fund | — | 289,638,290 | ||||
Select International Equity Fund | 116,522,244 | 90,450,637 | ||||
Outstanding Contract Amounts Bought | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
International Developed Markets Fund | $ | 1,006,243,529 | $ | 1,295,547,050 | ||
Global Equity Fund | 726,739,925 | 742,938,371 | ||||
Emerging Markets Fund | 687,205,958 | 628,183,964 | ||||
Tax-Managed International Equity Fund | 186,484,681 | 195,244,110 | ||||
Global Opportunistic Credit Fund | 648,534,464 | 622,621,870 | ||||
Unconstrained Total Return Fund | 137,137,382 | 230,737,977 | ||||
Strategic Bond Fund | 1,607,408,856 | 1,301,956,392 | ||||
Investment Grade Bond Fund | 104,383,957 | 95,220,671 | ||||
Short Duration Bond Fund | 56,961,788 | 44,759,601 | ||||
Global Infrastructure Fund | 67,965,993 | 100,138,355 | ||||
Global Real Estate Securities Fund | 81,855,299 | 35,269,854 | ||||
Multi-Strategy Income Fund | 119,875,735 | 156,475,948 | ||||
Multi-Asset Growth Strategy Fund | — | 288,735,872 | ||||
Select International Equity Fund | 116,561,216 | 90,430,467 |
Options
Certain Funds may purchase and sell (write) call and put options on securities and securities indices. Such options are traded on
a national securities exchange or in an OTC market. The Funds may also purchase and sell (write) call and put options on foreign
currencies.
When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s
Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-
to-market to reflect the current fair value of the option written. The Fund receives a premium on the sale of a call option but gives
up the opportunity to profit from any increase in the value of the underlying instrument above the exercise price of the option, and
when the Fund writes a put option it is exposed to a decline in the price of the underlying instrument.
When a Fund sells an uncovered call option, it does not simultaneously have a long position in the underlying security. When a
Fund sells an uncovered put option, it does not simultaneously have a short position in the underlying security. Uncovered options
are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge.
Whether an option which the Fund has written expires on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the
Notes to Financial Statements 775
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security, and the proceeds from such sale are increased by the premium originally received. When a put option which
a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which a Fund
purchases upon exercise of the option.
The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to
market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price
of the underlying securities and interest rates.
Certain Funds may enter into a swaption (an option on a swap). In a swaption, in exchange for an option, the buyer gains the right
but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the contract
receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying swap.
As of April 30, 2017, the Strategic Call Overwriting Fund pledged securities valued at $40,269,711 as collateral in connection
with options.
For the period ended April 30, 2017, the Funds purchased or sold options primarily for the strategies listed below:
Funds | Strategies |
U.S. Defensive Equity Fund | Exposing cash to markets |
International Developed Markets Fund | Return enhancement and hedging |
Global Equity Fund | Return enhancement and hedging |
Global Opportunistic Credit Fund | Return enhancement and hedging |
Unconstrained Total Return Fund | Return enhancement and hedging |
Strategic Bond Fund | Return enhancement and hedging |
Multi-Strategy Income Fund | Return enhancement and hedging |
Multi-Asset Growth Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
Strategic Call Overwriting Fund | Return enhancement and hedging |
The Funds’ options contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly activity of options contracts measured by notional in USD.
Notional of Options Contracts Opened or | |||||||
Closed | |||||||
Funds | January 31, 2017 | April 30, 2017 | |||||
U.S. Defensive Equity Fund | Opened | $ | 139,902,500 | $ | 135,229,000 | ||
Closed | 149,847,000 | 135,291,500 | |||||
International Developed Markets Fund | Opened | 761,039,501 | — | ||||
Closed | 229,548,202 | 528,799,871 | |||||
Global Equity Fund | Opened | 729,015,343 | 450,540,529 | ||||
Closed | 219,773,902 | 507,790,821 | |||||
Global Opportunistic Credit Fund | Opened | 173,895,150 | 70,311,600 | ||||
Closed | 114,353,750 | 32,572,500 | |||||
Unconstrained Total Return Fund | Opened | 23,931,147,065 | 65,103,062,132 | ||||
Closed | 24,866,307,008 | 51,077,786,037 | |||||
Strategic Bond Fund | Opened | 20,150,629,250 | 10,969,193,030 | ||||
Closed | 13,348,008,750 | 17,808,924,243 | |||||
Multi-Strategy Income Fund | Opened | 55,199,822 | 79,167,343,114 | ||||
Closed | 254,924,999 | 57,467,996,642 | |||||
Multi-Asset Growth Strategy Fund | Opened | — | 18,711,806,509 | ||||
Closed | — | 9,368,843,750 | |||||
Strategic Call Overwriting Fund | Opened | 494,263,000 | 498,211,000 | ||||
Closed | 487,153,500 | 499,582,000 |
776 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Futures Contracts
Certain Funds may invest in futures contracts (i.e., interest rate, foreign currency, index futures contracts) and commodity futures
contracts (Commodity Strategies Fund only). The face or contract value of these instruments reflect the extent of the Funds’
exposure to off balance sheet risk. The primary risks associated with the use of futures contracts are an imperfect correlation
between the change in fair value of the securities held by the Funds and the prices of futures contracts, and the possibility of an
illiquid market. Upon entering into a futures contract, the Funds are required to deposit with a broker an amount, termed the initial
margin, which typically represents 5% to 10% of the purchase price indicated in the futures contract. Payments to and from the
broker, known as variation margin, are typically required to be made on a daily basis as the price of the futures contract fluctuates.
Changes in initial settlement value are accounted for as unrealized appreciation (depreciation) until the contracts are terminated,
at which time realized gains and losses are recognized.
For the period ended April 30, 2017, the following Funds entered into futures contracts primarily for the strategies listed below:
Funds | Strategies |
U.S. Core Equity Fund | Exposing cash to markets |
U.S. Defensive Equity Fund | Exposing cash to markets |
U.S. Dynamic Equity Fund | Exposing cash to markets |
U.S. Strategic Equity Fund | Exposing cash to markets |
U.S. Large Cap Equity Fund | Exposing cash to markets |
U.S. Mid Cap Equity Fund | Exposing cash to markets |
U.S. Small Cap Equity Fund | Exposing cash to markets |
International Developed Markets Fund | Return enhancement, hedging, and exposing cash to markets |
Global Equity Fund | Return enhancement, hedging, and exposing cash to markets |
Emerging Markets Fund | Return enhancement, hedging, and exposing cash to markets |
Tax-Managed U.S. Large Cap Fund | Exposing cash to markets |
Tax-Managed U.S. Mid & Small Cap Fund | Exposing cash to markets |
Tax-Managed International Equity Fund | Return enhancement, hedging, and exposing cash to markets |
Global Opportunistic Credit Fund | Return enhancement, hedging, and exposing cash to markets |
Unconstrained Total Return Fund | Return enhancement and hedging |
Strategic Bond Fund | Return enhancement, hedging, and exposing cash to markets |
Investment Grade Bond Fund | Return enhancement, hedging, and exposing cash to markets |
Short Duration Bond Fund | Return enhancement, hedging, and exposing cash to markets |
Commodity Strategies Fund | Return enhancement |
Global Infrastructure Fund | Exposing cash to markets |
Global Real Estate Securities Fund | Exposing cash to markets |
Multi-Strategy Income Fund | Return enhancement, hedging, and exposing cash to markets |
Multi-Asset Growth Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
Strategic Call Overwriting Fund | Hedging and exposing cash to markets |
Select U.S. Equity Fund | Exposing cash to markets |
Select International Equity Fund | Return enhancement, hedging, exposing cash to markets, and trade settlement |
The Funds' futures contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly activity of futures contracts measured by notional in USD.
Notional of Futures Contracts Opened or | |||||||
Closed | |||||||
Funds | January 31, 2017 | April 30, 2017 | |||||
U.S. Core Equity Fund | Opened | $ | 71,188,180 | $ | 63,634,357 | ||
Closed | 85,780,801 | 73,089,067 | |||||
U.S. Defensive Equity Fund | Opened | 48,866,468 | 71,594,716 | ||||
Closed | 53,439,035 | 59,282,714 | |||||
U.S. Dynamic Equity Fund | Opened | 57,954,636 | 19,827,609 | ||||
Closed | 54,820,097 | 35,122,670 | |||||
U.S. Strategic Equity Fund | Opened | 298,486,682 | 274,172,225 | ||||
Closed | 217,566,964 | 360,380,593 | |||||
U.S. Large Cap Equity Fund | Opened | 28,673,154 | 232,041,392 | ||||
Closed | 34,031,763 | 244,719,023 | |||||
U.S. Mid Cap Equity Fund | Opened | 17,086,971 | 14,421,487 | ||||
Closed | 13,579,705 | 18,058,485 |
Notes to Financial Statements 777
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Notional of Futures Contracts Opened or | ||||||
Closed | ||||||
U.S. Small Cap Equity Fund | Opened | 176,912,401 | 241,230,473 | |||
Closed | 197,236,210 | 251,532,032 | ||||
International Developed Markets Fund | Opened | 687,775,359 | 931,827,912 | |||
Closed | 627,883,499 | 956,172,308 | ||||
Global Equity Fund | Opened | 675,870,082 | 572,559,785 | |||
Closed | 537,146,598 | 657,439,951 | ||||
Emerging Markets Fund | Opened | 410,735,616 | 505,136,583 | |||
Closed | 462,014,355 | 408,959,033 | ||||
Tax-Managed U.S. Large Cap Fund | Opened | 184,260,469 | 145,802,567 | |||
Closed | 212,090,822 | 199,858,941 | ||||
Tax-Managed U.S. Mid & Small Cap Fund | Opened | 32,603,234 | 38,385,882 | |||
Closed | 23,361,740 | 45,554,491 | ||||
Tax-Managed International Equity Fund | Opened | 237,512,537 | 310,119,145 | |||
Closed | 229,145,078 | 269,240,725 | ||||
Global Opportunistic Credit Fund | Opened | 940,635,455 | 1,314,655,867 | |||
Closed | 945,555,476 | 1,323,105,377 | ||||
Unconstrained Total Return Fund | Opened | 219,783,610 | 412,369,942 | |||
Closed | 152,908,378 | 301,760,243 | ||||
Strategic Bond Fund | Opened | 4,601,748,179 | 4,585,372,608 | |||
Closed | 4,257,308,742 | 4,279,866,272 | ||||
Investment Grade Bond Fund | Opened | 462,416,935 | 471,194,008 | |||
Closed | 425,867,177 | 491,545,636 | ||||
Short Duration Bond Fund | Opened | 396,815,249 | 442,022,121 | |||
Closed | 321,093,773 | 388,270,825 | ||||
Commodity Strategies Fund | Opened | 8,498,278 | 736,229,068 | |||
Closed | 12,637,459 | 278,952,865 | ||||
Global Infrastructure Fund | Opened | 119,835,936 | 114,908,695 | |||
Closed | 105,531,941 | 116,551,133 | ||||
Global Real Estate Securities Fund | Opened | 120,532,059 | 57,226,290 | |||
Closed | 121,982,263 | 60,744,856 | ||||
Multi-Strategy Income Fund | Opened | 335,606,633 | 388,342,935 | |||
Closed | 277,965,097 | 379,989,923 | ||||
Multi-Asset Growth Strategy Fund | Opened | — | 488,961,997 | |||
Closed | — | 263,602,117 | ||||
Strategic Call Overwriting Fund | Opened | 10,004,548 | 7,411,456 | |||
Closed | 9,098,593 | 8,392,570 | ||||
Select U.S. Equity Fund | Opened | 150,464,332 | 253,219,593 | |||
Closed | 69,256,863 | 313,326,890 | ||||
Select International Equity Fund | Opened | 71,983,356 | 99,231,635 | |||
Closed | 79,729,765 | 79,901,005 |
Swap Agreements
Certain Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether they are
hedging their assets or their liabilities, and will usually enter into swaps on a net basis (i.e., the two payment streams are netted
out, with the Funds receiving or paying only the net amount of the two payments). When a Fund engages in a swap, it exchanges
its obligations to pay or rights to receive payments for the obligations to pay or rights to receive payments of another party (i.e., an
exchange of floating rate payments for fixed rate payments).
778 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Certain Funds may enter into several different types of swap agreements including credit default, interest rate, commodity-linked
(Commodity Strategies Fund only), total return (equity and/or index) and currency swaps. Credit default swaps are a counterparty
agreement which allows the transfer of third party credit risk (the possibility that an issuer will default on its obligation by failing
to pay principal or interest in a timely manner) from one party to another. The lender faces the credit risk from a third party and the
counterparty in the swap agrees to insure this risk in exchange for regular periodic payments. Interest rate swaps are a counterparty
agreement, can be customized to meet each party’s needs, and involve the exchange of a fixed or variable payment per period
for a payment that is not fixed. Equity swaps are a counterparty agreement where two parties exchange two sets of cash flows on
predetermined dates for an agreed upon amount of time. The cash flows will typically be an equity index value swapped with a
floating rate such as LIBOR plus or minus a predefined spread. Index swap agreements are a counterparty agreement intended
to expose cash to markets or to effect investment transactions consistent with those Funds’ investment objectives and strategies.
Currency swaps are a counterparty agreement where two parties exchange specified amounts of different currencies which are
followed by each paying the other a series of interest payments that are based on the principal cash flow. At maturity the principal
amounts are returned.
The Funds generally expect to enter into these transactions primarily to preserve a return or spread on a particular investment or
portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date, or for
return enhancement. Under most swap agreements entered into by a Fund, the parties' obligations are determined on a "net basis".
The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a
daily basis and an amount of cash or liquid assets having an aggregate NAV at least equal to the accrued excess will be segregated.
To the extent that the Funds enter into swaps on other than a net basis, the amount maintained in a segregated account will be the
full amount of the Funds’ obligations, if any, with respect to such swaps, accrued on a daily basis. If there is a default by the other
party to such a transaction, the Funds will have contractual remedies pursuant to the agreement related to the transaction.
A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes
bankrupt.
Credit Default Swaps
Certain Funds may enter into credit default swaps. A credit default swap can refer to corporate issues, government issues, asset-
backed securities or an index of assets, each known as the reference entity or underlying asset. Funds may act as either the buyer
or the seller of a credit default swap involving one party making a stream of payments to another party in exchange for the right to
receive a specified return in the event of a default or other credit event. Depending upon the terms of the contract, the credit default
swap may be closed via physical settlement. However, due to the possible or potential instability in the market, there is a risk that
the Funds may be unable to deliver the underlying debt security to the other party to the agreement. Additionally, the Funds may
not receive the expected amount under the swap agreement if the other party to the agreement defaults or becomes bankrupt. In
an unhedged credit default swap, Funds enter into a credit default swap without owning the underlying asset or debt issued by the
reference entity. Credit default swaps allow Funds to acquire or reduce credit exposure to a particular issuer, asset or basket of
instruments.
As the seller of protection in a credit default swap, a Fund would be required to pay the par or other agreed-upon value (or otherwise
perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified
credit event) and the counterparty would be required to surrender the reference debt obligation. In return, the Fund would receive
from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no
credit event occurs, the Fund would keep the stream of payments and would have no payment obligations. As a seller of protection,
the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, that Fund would be subject to
investment exposure on the notional amount of the swap.
Certain Funds may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities
held in their portfolios or to take a short position in a debt security, in which case the Fund would function as the counterparty
referenced in the preceding paragraph.
If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of
the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer
of protection’s right to choose the deliverable obligation with the lowest value following a credit event). Certain Funds may use
credit default swaps to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where Funds own or have
Notes to Financial Statements 779
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by the
credit default swap’s spread) of a particular issuer’s default.
Deliverable obligations for credit default swaps on asset-backed securities in most instances are limited to the specific referenced
obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown
or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These
reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap
agreement generally will be adjusted by corresponding amounts. Certain Funds may use credit default swaps on asset-backed
securities to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation or to take
an active long or short position with respect to the likelihood of a particular referenced obligation’s default (or another defined credit
event).
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for
the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of
the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be
representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a
poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the
indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging
markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized
terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and
if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes
periodically, usually every six months, and, for most indices, each name has an equal weight in the index. Traders may use credit
default swaps on indices to speculate on changes in credit quality.
Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on
corporate issues as of period-end are disclosed in the Schedules of Investments and generally serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit
derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and
may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-
backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of
the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk
of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future
payments (undiscounted) that Funds as a seller of protection could be required to make under a credit default swap agreement
equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of April 30,
2017, for which a Fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would be
partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for
the same referenced entity or entities.
Credit default swaps could result in losses if the Funds do not correctly evaluate the creditworthiness of the company or companies
on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Funds had invested
in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject
to illiquidity and counterparty risk. A Fund will generally incur a greater degree of risk when it sells a credit default swap than
when it purchases a credit default swap. As a buyer of a credit default swap, a Fund may lose its investment and recover nothing
should a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event
were to occur, the value of any deliverable obligation received by a Fund, coupled with the upfront or periodic payments previously
received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
If the creditworthiness of a Fund’s swap counterparty declines, the risk that the counterparty may not perform could increase,
potentially resulting in a loss to the Fund. To limit the counterparty risk involved in swap agreements, the Funds will only enter
into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that
the Funds will be able to do so, the Funds may be able to reduce or eliminate their exposure under a swap agreement either by
assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party.
780 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
The Funds may have limited ability to eliminate their exposure under a credit default swap if the credit quality of the reference
entity or underlying asset has declined.
For the period ended April 30, 2017, the Funds entered into credit default swaps primarily for the strategies listed below:
Funds | Strategies |
Global Opportunistic Credit Fund | Return enhancement, hedging, and exposing cash to markets |
Unconstrained Total Return Fund | Return enhancement and hedging |
Strategic Bond Fund | Return enhancement, hedging, and exposing cash to markets |
Multi-Strategy Income Fund | Return enhancement, hedging, and exposing cash to markets |
Multi-Growth Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
The Funds' period end credit default swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to
meet strategic requirements. The following table illustrates the quarterly volume of credit default swap contracts. For the purpose
of this disclosure, the volume is measured by notional amounts outstanding at each quarter end.
Credit Default Swap Notional Amounts | ||||||
Outstanding | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
Global Opportunistic Credit Fund | $ | 214,100,491 | $ | 187,857,590 | ||
Unconstrained Total Return Fund | 29,823,000 | 52,061,000 | ||||
Strategic Bond Fund | 4,450,000 | 11,290,000 | ||||
Multi-Strategy Income Fund | 53,100,000 | 70,900,000 | ||||
Multi-Asset Growth Strategy Fund | — | 29,603,064 |
Interest Rate Swaps
The use of interest rate swaps is a highly specialized activity which involves investment techniques and risks different from those
associated with ordinary portfolio securities transactions. If RIM or a money manager using this technique is incorrect in its forecast
of fair values, interest rates and other applicable factors, the investment performance of a Fund might diminish compared to what
it would have been if this investment technique were not used.
Interest rate swaps do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss
with respect to interest rate swaps is limited to the net amount of interest payments that the Funds are contractually obligated to
make. Interest rate swaps are traded on exchanges and are subject to central clearing. If the clearing house or futures commission
merchant defaults, the Funds' risk of loss consists of the net amount of interest payments that the Funds are contractually entitled
to receive. The counterparty risk for cleared derivatives is generally lower than for uncleared derivatives. However, clearing may
subject a Fund to increased costs or margin requirements.
For the period ended April 30, 2017, the Funds entered into interest rate swaps primarily for the strategies listed below:
Funds | Strategies |
Unconstrained Total Return Fund | Return enhancement and hedging |
Tax-Exempt High Yield Bond Fund | Return enhancement and hedging |
Multi-Strategy Income Fund | Return enhancement and hedging |
Multi-Asset Growth Strategy Fund | Return enhancement and hedging |
The Funds’ interest rate swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following table illustrates the quarterly volume of interest rate swap contracts. For the purpose of this
disclosure, the volume is measured by the base notional amounts outstanding at each quarter end.
Interest Rate Swap Notional Amounts | ||||||
Outstanding | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
Unconstrained Total Return Fund | $ | 125,503,700 | $ | 260,632,800 | ||
Strategic Bond Fund | 173,731,878 | 172,435,394 | ||||
Tax-Exempt High Yield Bond Fund | 6,200,000 | 9,300,000 | ||||
Multi-Strategy Income Fund | — | 329,691,300 | ||||
Multi-Asset Growth Strategy Fund | — | 171,528,500 |
Notes to Financial Statements 781
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Total Return Swaps
Certain Funds may enter into index swap agreements to expose cash to markets or to effect investment transactions. Index swap
agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more
than one year. In a standard index swap transaction, the two parties agree to exchange the returns (or differentials in rates of return)
earned or realized on particular investments or instruments.
The returns to be exchanged between the parties are calculated with respect to a “notional amount” (i.e., a specified dollar amount
that is hypothetically invested in a “basket” of securities representing a particular index).
For the period ended April 30, 2017, the Funds entered into total return swaps primarily for the strategies listed below:
Funds | Strategies |
Emerging Markets Fund | Return enhancement, hedging, and exposing cash to markets |
Unconstrained Total Return Fund | Hedging |
Strategic Bond Fund | Exposing cash to markets |
Commodity Strategies Fund | Return enhancement |
Multi-Strategy Income Fund | Return enhancement and hedging |
The Funds' period end total return swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to
meet strategic requirements. The following table illustrates the quarterly volume of total return swap contracts. For the purpose of
this disclosure, volume is measured by base notional amounts outstanding at each quarter end.
Total Return Swap Notional Amounts | ||||||
Outstanding | ||||||
Quarter Ended | January 31, 2011 | April 30, 2017 | ||||
Emerging Markets Fund | $ | 30,701,886 | $ | 17,238,081 | ||
Unconstrained Total Return Fund | 139,087,602 | 99,012,853 | ||||
Strategic Bond Fund | 170,078,345 | 89,421,169 | ||||
Commodity Strategies Fund | 738,445,187 | 451,693,734 | ||||
Multi-Strategy Income Fund | — | 50,543,721 |
Currency Swaps
Certain Funds may enter into currency swap agreements to enhance returns or for hedging purposes. Currency swap agreements are
agreements where two parties exchange specified amounts of different currencies which are followed by paying the other a series of
interest payments that are based on the principal cash flow. At maturity, the principal amounts are exchanged.
Commodity-Linked Instruments
The Commodity Strategies Fund may invest in commodity-linked derivative instruments, such as swap agreements and futures.
At least part of their value is derived from the value of an underlying commodity index, commodity futures or options contracts
index, or other readily measurable economic variable. The prices of commodity-linked derivative instruments may move in
different directions than investments in traditional equity and debt securities. As an example, during periods of rising inflation,
debt securities have historically tended to decline in value due to the general increase in prevailing interest rates. Conversely,
during those same periods of rising inflation, historically the prices of certain commodities, such as oil and metals, have tended to
increase. Of course, there cannot be any guarantee that such commodity-linked derivative instruments will perform in that manner
in the future, and at certain times the price movements of commodity-linked derivative investments have been parallel to those of
debt and equity securities.
The Commodity Strategies Fund may invest in commodity-linked notes. Commodity-linked notes pay a return linked to the
performance of a commodity over a defined period. On the maturity date, the note pays the initial principal amount plus return, if
any, based on the percentage change in the underlying commodity.
Master Agreements
Certain Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”)
with counterparties that govern transactions in OTC derivative and foreign exchange contracts entered into by the Funds and
those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements,
collateral and events of default or termination. Events of termination and default include conditions that may entitle either party
782 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement.
Any election to terminate early could be material to the financial statements. Since different types of forward and OTC financial
derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty
organization, each type of transaction may be covered by a different ISDA Master Agreement, resulting in the need for multiple
agreements with a single counterparty. As the ISDA Master Agreements are specific to unique operations of different asset types,
they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions governed
under a single agreement with a counterparty.
Master Repurchase Agreements (“Master Repo Agreements”) govern transactions between a Fund and select counterparties.
The Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and
maintenance of collateral for repurchase and reverse repurchase agreements.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors
surrounding the settlement of certain forward settling transactions, such as delayed delivery by and between a Fund and select
counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment
and transfer, events of default, termination, and maintenance of collateral.
Disclosure about Offsetting Assets and Liabilities
Balance sheet disclosure is based on various netting agreements between brokers and counterparties, such as ISDA Master
Agreements, Master Repo Agreements and Master Forward Agreements. Certain funds utilize multiple counterparties. The
quantitative disclosure begins with disaggregation of counterparties by legal entity and the roll up of the data to reflect a single
counterparty in the table within the Funds’ financial statements. Net exposure represents the net receivable (payable) that would be
due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted across transactions governed
under the same Master Agreement with the same legal entity.
Loan Agreements
Certain Funds may invest in direct debt instruments, which are interests in amounts owed by corporate, governmental, or other
borrowers to lenders or lending syndicates. The Funds' investments in loans may be in the form of participations in loans or
assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the
“agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When
investing in a loan participation, the Funds have the right to receive payments of principal, interest and any fees to which they
are entitled only from the agent selling the loan agreement and only upon receipt by the agent of payments from the borrower. The
Funds generally have no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Funds
may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement. When the Funds purchase
assignments from agents they acquire direct rights against the borrower on the loan.
Local Access Products
Certain Funds may invest in local access products, also known as certificates of participation, participation notes or participation
interest notes. Local access products are issued by banks or broker-dealers and are designed to replicate the performance of foreign
companies or foreign securities markets and can be used by the Fund as an alternative means to access the securities market of a
frontier emerging market country. The performance results of local access products will not replicate exactly the performance of
the foreign companies or foreign securities markets that they seek to replicate due to transaction and other expenses. Investments
in local access products involve certain risks in addition to those associated with a direct investment in the underlying foreign
companies or foreign securities markets whose return they seek to replicate. There can be no assurance that there will be a trading
market or that the trading price of local access products will equal the underlying value of the foreign company or foreign securities
market that it seeks to replicate. The Funds rely on the creditworthiness of the counterparty issuing the local access products and
have no rights against the issuer of the underlying security. The Funds minimize this risk by entering into agreements only with
counterparties that RIM deems creditworthy. Due to liquidity and transfer restrictions, the secondary markets on which the local
access products are traded may be less liquid than the markets for other securities, or may be completely illiquid.
Credit Linked Notes
Certain Funds may invest in credit linked notes. Credit linked notes are obligations between two or more parties where the payment
of principal and/or interest is based on the performance of some obligation, basket of obligations, index or economic indicator (a
Notes to Financial Statements 783
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
“reference instrument”). In addition to the credit risk associated with the reference instrument and interest rate risk, the buyer and
seller of a credit linked note or similar structured investment are subject to counterparty risk.
Short Sales
The U.S. Defensive Equity, U.S. Dynamic Equity, U.S. Strategic Equity and Multi-Asset Growth Strategy Funds may enter into
short sale transactions. In a short sale, the seller sells a security that it does not own, typically a security borrowed from a broker
or dealer. Because the seller remains liable to return the underlying security that it borrowed from the broker or dealer, the seller
must purchase the security prior to the date on which delivery to the broker or dealer is required. The Funds will incur a loss as a
result of the short sale if the price of the security increases between the date of the short sale and the date on which the Funds must
return the borrowed security. The Funds will realize a gain if the security declines in price between those dates. Short sales expose
the Funds to the risk of liability for the fair value of the security that is sold (the amount of which increases as the fair value of the
underlying security increases), in addition to the costs associated with establishing, maintaining and closing out the short position.
Although the Funds’ potential for gain as a result of a short sale is limited to the price at which it sold the security short less the
cost of borrowing the security, its potential for loss is theoretically unlimited because there is no limit to the cost of replacing the
borrowed security. When the Funds make a short sale, the Funds may use all or a portion of the cash proceeds of short sales to
purchase other securities or for any other permissible Fund purpose. To the extent necessary to meet collateral requirements, the
Funds are required to pledge assets in a segregated account maintained by the Funds’ custodian for the benefit of the broker. The
Funds also may use securities they own to meet any such collateral obligations. Until the Funds replace a borrowed security in
connection with a short sale, the Funds will: (a) maintain daily a segregated account, containing liquid assets at such a level that
the amount deposited in the segregated account will equal the current requirement under Regulation T promulgated by the Board
of Governors of the Federal Reserve System under the authority of Sections 7 and 8 of the Securities Exchange Act of 1934, as
amended; or (b) otherwise cover its short position in accordance with positions taken by the staff of the Securities and Exchange
Commission (e.g., taking an offsetting long position in the security sold short). As of April 30, 2017, the U.S. Defensive Equity
Fund held $51,846,012, the U.S. Dynamic Equity Fund held $14,303,517, and the U.S. Strategic Equity Fund held $49,615,567
as collateral for short sales.
Emerging Markets Securities
Certain Funds may invest in emerging markets securities. Investing in emerging markets securities can pose some risks different
from, and greater than, risks of investing in U.S. or developed markets securities. These risks include: a risk of loss due to
exposure to economic structures that are generally less diverse and mature, and to political systems which may have less stability,
than those of more developed countries; smaller market capitalization of securities markets, which may suffer periods of relative
illiquidity; significant price volatility; restrictions on foreign investment; and possible difficulties in the repatriation of investment
income and capital. In addition, foreign investors may be required to register the proceeds of sales and future economic or political
crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization, or creation of
government monopolies. The currencies of emerging market countries may experience significant declines against the U.S. dollar,
and devaluation may occur subsequent to investments in these currencies by the Funds. Emerging market securities may be
subject to currency transfer restrictions and may experience delays and disruptions in settlement procedures. Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of
certain emerging market countries.
Emerging Markets Debt
Certain Funds may invest in emerging markets debt. A Fund's emerging markets debt securities may include obligations of
governments and corporations. As with any fixed income securities, emerging markets debt securities are subject to the risk of
being downgraded in credit rating due to the risk of default. In the event of a default on any investments in foreign debt obligations,
it may be more difficult for a Fund to obtain or to enforce a judgment against the issuers of such securities. With respect to debt
issued by emerging market governments, such issuers may be unwilling to pay interest and repay principal when due, either due
to an inability to pay or submission to political pressure not to pay, and as a result may default, declare temporary suspensions of
interest payments or require that the conditions for payment be renegotiated.
Repurchase Agreements
Certain Funds may enter into repurchase agreements. A repurchase agreement is an agreement under which a Fund acquires a
fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the seller
784 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
at an agreed upon price and date (normally within a few days or weeks). The resale price reflects an agreed upon interest rate
effective for the period the security is held by a Fund and is unrelated to the interest rate on the security. The securities acquired
by a Fund constitute collateral for the repurchase obligation. In these transactions, the securities acquired by a Fund (including
accrued interest earned thereon) must have a total value in excess of the value of the repurchase agreement and must be held by the
custodian bank until repurchased. A Fund will not invest more than 15% of its net assets (taken at current fair value) in repurchase
agreements maturing in more than seven days.
Mortgage-Related and Other Asset-Backed Securities
Certain Funds may invest in mortgage or other asset-backed securities (“ABS”). These securities may include mortgage instruments
issued by U.S. government agencies (“agency mortgages”) or those issued by private entities (“non-agency mortgages”). Specific
types of instruments may include reverse mortgages, mortgage pass-through securities, collateralized mortgage obligations
(“CMO”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and
other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real
property. The value of a Fund’s mortgage-backed securities (“MBS”) may be affected by, among other things, changes or perceived
changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgage, or the
quality of the underlying assets. The mortgages underlying the securities may default or decline in quality or value. Through its
investments in MBS, a Fund has exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage
and credit markets generally. Underlying collateral related to subprime, Alt-A and non-conforming mortgage loans has become
increasingly susceptible to defaults and declines in quality or value, especially in a declining residential real estate market. In
addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.
Mortgage-Backed Securities
MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying
the securities. In practice, however, unscheduled or early payments of principal and interest on the underlying mortgages may make
the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of
a Fund’s portfolio at the time resulting in reinvestment risk.
Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS,
making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.
MBS may have less potential for capital appreciation than comparable fixed income securities due to the likelihood of increased
prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are paid
off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a
price above par. In such an environment, this risk limits the potential price appreciation of these securities.
Agency Mortgage-Backed Securities
Certain MBS may be issued or guaranteed by the U.S. government or a government sponsored entity, such as Fannie Mae (the Federal
National Mortgage Association) or Freddie Mac (the Federal Home Loan Mortgage Corporation). Although these instruments may
be guaranteed by the U.S. government or a government sponsored entity, many such MBS are not backed by the full faith and credit
of the United States and are still exposed to the risk of non-payment.
Privately Issued Mortgage-Backed Securities
MBS held by a Fund may be issued by private issuers including commercial banks, savings associations, mortgage companies,
investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles or SPVs) and
other entities that acquire and package mortgage loans for resale as MBS. These privately issued non-agency MBS may offer higher
yields than those issued by government agencies, but also may be subject to greater price changes than governmental issues.
Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments
on their loans. Alt-A loans refer to loans extended to borrowers who have incomplete documentation of income, assets, or other
variables that are important to the credit underwriting processes. Non-conforming mortgages are loans that do not meet the standards
that allow purchase by government-sponsored enterprises. MBS with exposure to subprime loans, Alt-A loans or nonconforming
loans have had in many cases higher default rates than those loans that meet government underwriting requirements. The risk of
non-payment is greater for MBS that are backed by mortgage pools that contain subprime, Alt-A and non-conforming loans, but a
level of risk exists for all loans.
Notes to Financial Statements 785
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Unlike agency MBS issued or guaranteed by the U.S. government or a government-sponsored entity (e.g., Fannie Mae and Freddie
Mac), MBS issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit
enhancements provided by external entities such as banks or financial institutions or achieved through the structuring of the
transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and
subordinated securities (e.g., the issuance of securities by an SPV in multiple classes or tranches, with one or more classes being
senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying
mortgage loans are borne first by the holders of the subordinated class); creation of reserve funds (in which case cash or investments,
sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and
overcollateralization (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds
that required to make payment on the securities and pay any servicing or other fees). However, there can be no guarantee that credit
enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans. In addition, MBS
that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable
to those MBS that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private
MBS may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or
government-sponsored MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower
characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured
housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater
extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans.
Privately issued MBS are not traded on an exchange and there may be a limited market for the securities, especially when there is a
perceived weakness in the mortgage and real estate market sectors. Without an active trading market, MBS held in a Fund's portfolio
may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.
Asset-Backed Securities
ABS may include MBS, loans, receivables or other assets. The value of the Funds’ ABS may be affected by, among other things,
actual or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the
receivables, the market’s assessment of the quality of underlying assets or actual or perceived changes in the credit worthiness of
the individual borrowers, the originator, the servicing agent or the financial institution providing the credit support.
Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities.
Rising or high interest rates tend to extend the duration of ABS, making them more volatile and more sensitive to changes in interest
rates. The underlying assets are sometimes subject to prepayments which can shorten the security’s weighted average life and may
lower its return. Defaults on loans underlying ABS have become an increasing risk for ABS that are secured by home equity loans
related to sub-prime, Alt-A or non-conforming mortgage loans, especially in a declining residential real estate market.
ABS (other than MBS) present certain risks that are not presented by MBS. Primarily, these securities may not have the benefit
of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the
protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts
owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may
not, in some cases, be available to support payments on these securities. ABS are often backed by a pool of assets representing the
obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the
securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against
losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances,
generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in a
timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in the
pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from third
parties, through various means of structuring the transaction or through a combination of such approaches. The Funds will not
pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on
historical information respecting the level of credit risk associated with the underlying assets.
Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment
in such a security. The availability of ABS may be affected by legislative or regulatory developments. It is possible that such
developments may require the Funds to dispose of any then-existing holdings of such securities.
786 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Forward Commitments
Certain Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time. The price
of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is
negotiated. The Funds may dispose of a forward commitment transaction prior to settlement if it is appropriate to do so and may
realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt obligations
of the Funds in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be earmarked on the
Fund's records at the trade date and until the transaction is settled. A forward commitment transaction involves a risk of loss if the
value of the security to be purchased declines prior to the settlement date or the other party to the transaction fails to complete the
transaction.
Certain Funds may invest in to-be-announced ("TBA") mortgage-backed securities. A TBA security is a forward mortgage-backed
securities trade in which a seller agrees to issue a TBA mortgage-backed security at a future date. The securities are purchased
and sold on a forward commitment basis with an approximate principal amount and maturity date. The actual principal amount and
maturity date will be determined upon settlement when the specific mortgage pools are assigned. These securities are within the
parameters of industry “good delivery” standards.
Inflation-Indexed Bonds
The fixed income funds may invest in inflation-indexed securities, which are typically bonds or notes designed to provide a return
higher than the rate of inflation (based on a designated index) if held to maturity. A common type of inflation-indexed security is a
U.S. Treasury Inflation-Protected Security (“TIPS”). The principal of a TIPS increases with inflation and decreases with deflation,
as measured by the Consumer Price Index. When a TIPS matures, the adjusted principal or original principal is paid, whichever is
greater. TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest
payments rise with inflation and fall with deflation.
Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general
indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
Market, Credit and Counterparty Risk
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential
loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to
credit risk, the Funds may also be exposed to counterparty risk or risk that an institution or other entity with which the Funds have
unsettled or open transactions will default. The potential loss could exceed the value of the relevant assets recorded in the financial
statements (the “Assets”). The Assets consist principally of cash due from counterparties and investments. The extent of the Funds'
exposure to market, credit and counterparty risks with respect to the Assets approximates their carrying value as recorded in the
Funds' Statements of Assets and Liabilities.
Global economies and financial markets are becoming increasingly interconnected and political and economic conditions (including
recent instability and volatility) and events (including natural disasters) in one country, region or financial market may adversely
impact issuers in a different country, region or financial market. As a result, issuers of securities held by a Fund may experience
significant declines in the value of their assets and even cease operations. Such conditions and/or events may not have the same
impact on all types of securities and may expose a Fund to greater market and liquidity risk and potential difficulty in valuing
portfolio instruments held. This could cause a Fund to underperform other types of investments.
3. Investment in Cayman Commodity Strategies Fund Ltd.
The Cayman Commodity Strategies Fund Ltd. (“Subsidiary”) is a Cayman Island exempted company and wholly owned subsidiary
of the Commodity Strategies Fund. The Subsidiary acts as an investment vehicle for the Fund in order to effect certain investments
on behalf of the Fund. The Fund is the sole shareholder of its Subsidiary, and it is intended that the Fund will remain the sole
shareholder and, as a result, will continue to control the Subsidiary. As of April 30, 2017, net assets of the Commodity Strategies
Fund were $ 704,322,502 of which $ 123,322,502, or approximately 17.5%, represents the Fund’s ownership of the shares of the
Subsidiary.
Notes to Financial Statements 787
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
The Commodity Strategies Fund may invest up to 25% of its total assets in the Subsidiary, which may invest without limitation
in commodity-linked derivative instruments, such as swaps and futures that provide exposure to the performance of commodities
markets. The Subsidiary may also invest in fixed income securities. The financial statements of the Commodity Strategies Fund
have been consolidated and include the accounts of both the Fund and the Subsidiary. All inter-company transactions and balances
have been eliminated upon consolidation.
4. Investment Transactions
Securities
During the period ended April 30, 2017, purchases and sales of investment securities (excluding U.S. Government and Agency
obligations, short-term investments, options, futures and repurchase agreements) were as follows:
Purchases | Sales | |||||
U.S. Core Equity Fund | $ | 373,383,759 | $ | 419,975,635 | ||
U.S. Defensive Equity Fund | 344,525,942 | 418,769,719 | ||||
U.S. Dynamic Equity Fund | 201,188,605 | 429,323,815 | ||||
U.S. Strategic Equity Fund | 1,272,816,150 | 1,556,761,782 | ||||
U.S. Large Cap Equity Fund | 134,630,963 | 367,630,285 | ||||
U.S. Mid Cap Equity Fund | 76,778,304 | 90,073,610 | ||||
U.S. Small Cap Equity Fund | 908,665,485 | 1,155,006,106 | ||||
International Developed Markets Fund | 1,157,180,319 | 1,381,784,175 | ||||
Global Equity Fund | 915,134,196 | 1,087,805,783 | ||||
Emerging Markets Fund | 512,428,424 | 644,097,767 | ||||
Tax-Managed U.S. Large Cap Fund | 404,205,280 | 407,843,796 | ||||
Tax-Managed U.S. Mid & Small Cap Fund | 101,100,149 | 100,386,444 | ||||
Tax-Managed International Equity Fund | 247,087,325 | 109,981,880 | ||||
Global Opportunistic Credit Fund | 548,739,671 | 693,418,846 | ||||
Unconstrained Total Return Fund | 287,551,912 | 92,961,508 | ||||
Strategic Bond Fund | 1,081,153,667 | 1,207,378,208 | ||||
Investment Grade Bond Fund | 261,471,114 | 234,203,093 | ||||
Short Duration Bond Fund | 392,048,559 | 183,732,574 | ||||
Tax-Exempt High Yield Bond Fund | 195,107,067 | 84,485,139 | ||||
Tax-Exempt Bond Fund | 463,683,431 | 197,385,396 | ||||
Commodity Strategies Fund | — | — | ||||
Global Infrastructure Fund | 400,596,439 | 450,294,035 | ||||
Global Real Estate Securities Fund | 486,624,221 | 562,144,703 | ||||
Multi-Strategy Income Fund | 473,333,204 | 528,265,754 | ||||
Multi-Asset Growth Strategy Fund | 24,998,795 | 397,650,936 | ||||
Strategic Call Overwriting Fund | 6,977,795 | 15,315,814 | ||||
Select U.S. Equity Fund | 306,016,376 | 84,282,029 | ||||
Select International Equity Fund | 139,633,050 | 164,155,495 |
Purchases and sales of U.S. Government and Agency obligations (excluding short-term investments, options, futures and repurchase
agreements) were as follows:
Purchases | Sales | |||||
Global Opportunistic Credit Fund | $ | 7,680,191 | $ | 6,613,643 | ||
Unconstrained Total Return Fund | 234,132,025 | 183,311,372 | ||||
Strategic Bond Fund | 2,567,802,747 | 2,543,871,414 | ||||
Investment Grade Bond Fund | 391,589,707 | 411,148,701 | ||||
Short Duration Bond Fund | 382,950,254 | 519,650,675 | ||||
Multi-Strategy Income Fund | 200,415,508 | 150,658,949 | ||||
Multi-Asset Growth Strategy Fund | 23,584,450 | 58,937,978 |
788 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Securities Lending
The Investment Company has a securities lending program whereby each Fund can loan securities with a value up to 33 1/3% of
each Fund’s total assets. The maturity associated with these securities is considered continuous. The Fund receives cash (U.S.
currency), U.S. Government or U.S. Government Agency obligations as collateral against the loaned securities. The cash collateral
cannot be resold, repledged or rehypothecated. As of April 30, 2017, to the extent that a loan was collateralized by cash, such
collateral was invested by the securities lending agent, Brown Brothers Harriman & Co. (“BBH”), in the U.S. Cash Collateral Fund,
an unregistered fund advised by RIM. The collateral received is recorded on a lending Fund’s Statement of Assets and Liabilities
along with the related obligation to return the collateral.
Affiliated income generated from the investment of cash collateral, less negotiated rebate fees paid to participating brokers, is
divided between the Fund and BBH and is reported as securities lending income on the Fund's Statement of Operations. To the
extent that a loan is secured by non-cash collateral, brokers pay the Fund negotiated lenders’ fees, which are divided between the
Fund and BBH and are recorded as securities lending income for the Fund. All collateral received will be in an amount at least
equal to 102% (for loans of U.S. securities) or 105% (for loans of non-U.S. securities) of the fair value of the loaned securities at the
inception of each loan. The fair value of the loaned securities is determined at the close of business of the Fund and any additional
required collateral is delivered to the Fund the next day. Should the borrower of the securities fail financially, there is a risk of delay
in recovery of the securities or loss of rights in the collateral.
5. Related Party Transactions, Fees and Expenses
Adviser, Administrator, Transfer and Dividend Disbursing Agent
RIM provides or oversees the provision of all investment advisory and portfolio management services for the Funds, including
developing the investment program for each Fund and managing each Fund's overall exposures. From its advisory fees received
from the Funds, RIM, as agent for RIC, pays all fees to the money managers for their investment advisory services. Each money
manager has agreed that it will look only to RIM for the payment of the money manager’s fee, after RIC has paid RIM. Fees paid
to the money managers are not affected by any voluntary or statutory expense limitations. RIFUS is the Funds' administrator and
transfer agent. RIFUS, in its capacity as the Funds' administrator, provides or oversees the provision of all administrative services
for the Funds. RIFUS, in its capacity as the Funds' transfer agent and dividend disbursing agent, is responsible for providing
transfer agency and dividend disbursing services to the Funds. RIFUS is a wholly-owned subsidiary of RIM. RIM is an indirect,
wholly-owned subsidiary of Russell Investments Group, Ltd., a Cayman company.
The Funds are permitted to invest their cash (i.e., cash awaiting investment or cash held to meet redemption requests or to pay
expenses) in the U.S. Cash Management Fund, an unregistered fund advised by RIM. As of April 30, 2017, the Funds had invested
$2,208,010,903 in the U.S. Cash Management Fund. In addition, all or a portion of the collateral received from the Investment
Company’s securities lending program in the amount of $445,167,279 is invested in the U.S. Cash Collateral Fund, an unregistered
fund advised by RIM.
An affiliated company is a company in which a Fund has ownership of at least 5% of the voting securities or which the Fund
controls, is controlled by or is under common control with. See each Fund’s Related Party Transactions, Fees and Expenses for
disclosure of transactions with affiliated companies.
Each of the Funds pays the following advisory fee directly to RIM, billed monthly on a pro rata basis and calculated as a specified
percentage of the average daily net assets of each of the Funds:
Notes to Financial Statements 789
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Funds | Asset Level | Fee | |||||
U.S. Core Equity Fund | All assets | .55 | % | ||||
U.S. Defensive Equity Fund | All assets | .55 | % | ||||
U.S. Dynamic Equity Fund | First $2 billion | .80 | % | ||||
Next $3 billion | .76 | % | |||||
Next $5 billion | .73 | % | |||||
In excess of $10 billion | .71 | % | |||||
U.S. Strategic Equity Fund | First $2 billion | .75 | % | ||||
Next $3 billion | .71 | % | |||||
Next $5 billion | .68 | % | |||||
In excess of $10 billion | .66 | % | |||||
U.S. Large Cap Equity Fund | First $2 billion | .70 | % | ||||
Next $3 billion | .66 | % | |||||
Next $5 billion | .63 | % | |||||
In excess of $10 billion | .61 | % | |||||
U.S. Mid Cap Equity Fund | First $2 billion | .80 | % | ||||
Next $3 billion | .76 | % | |||||
Next $5 billion | .73 | % | |||||
In excess of $10 billion | .71 | % | |||||
U.S. Small Cap Equity Fund | All assets | .70 | % | ||||
International Developed Markets Fund | All assets | .70 | % | ||||
Global Equity Fund | First $2 billion | .95 | % | ||||
Next $3 billion | .91 | % | |||||
Next $5 billion | .88 | % | |||||
In excess of $10 billion | .86 | % | |||||
Emerging Markets Fund | First $2 billion | 1.15 | % | ||||
Next $3 billion | 1.11 | % | |||||
Next $5 billion | 1.08 | % | |||||
In excess of $10 billion | 1.06 | % | |||||
Tax-Managed U.S. Large Cap Fund | First $1.5 billion | .70 | % | ||||
Next $2.5 billion | .66 | % | |||||
Next $4 billion | .63 | % | |||||
In excess of $8 billion | .61 | % | |||||
Tax-Managed U.S. Mid & Small Cap Fund | First $1.5 billion | .98 | % | ||||
Next $2.5 billion | .94 | % | |||||
Next $4 billion | .91 | % | |||||
In excess of $8 billion | .89 | % | |||||
Tax-Managed International Equity Fund | First $1.5 billion | .85 | % | ||||
Next $2.5 billion | .81 | % | |||||
Next $4 billion | .78 | % | |||||
In excess of $8 billion | .76 | % | |||||
Global Opportunistic Credit Fund | First $2 billion | 1.00 | % | ||||
Next $3 billion | .96 | % | |||||
Next $5 billion | .93 | % | |||||
In excess of $10 billion | .91 | % | |||||
Unconstrained Total Return Fund | First $2 billion | 1.00 | % | ||||
Next $3 billion | .96 | % | |||||
Next $5 billion | .93 | % | |||||
In excess of $10 billion | .91 | % | |||||
Strategic Bond Fund | First $2 billion | .50 | % |
790 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Funds | Asset Level | Fee | |||||
Next $3 billion | .46 | % | |||||
Next $5 billion | .43 | % | |||||
In excess of $10 billion | .41 | % | |||||
Investment Grade Bond Fund | All assets | .25 | % | ||||
Short Duration Bond Fund | First $2 billion | .45 | % | ||||
Next $3 billion | .41 | % | |||||
Next $5 billion | .38 | % | |||||
In excess of $10 billion | .36 | % | |||||
Tax-Exempt High Yield Bond Fund | All assets | .50 | % | ||||
Tax-Exempt Bond Fund | All assets | .30 | % | ||||
Commodity Strategies Fund | First $2 billion | 1.25 | % | ||||
Next $3 billion | 1.21 | % | |||||
Next $5 billion | 1.18 | % | |||||
In excess of $10 billion | 1.16 | % | |||||
Global Infrastructure Fund | First $2 billion | 1.25 | % | ||||
Next $3 billion | 1.21 | % | |||||
Next $5 billion | 1.18 | % | |||||
In excess of $10 billion | 1.16 | % | |||||
Global Real Estate Securities Fund | First $2 billion | .80 | % | ||||
Next $3 billion | .76 | % | |||||
Next $5 billion | .73 | % | |||||
In excess of $10 billion | .71 | % | |||||
Multi-Strategy Income Fund | First $2 billion | .75 | % | ||||
Next $3 billion | .71 | % | |||||
Next $5 billion | .68 | % | |||||
Multi-Asset Growth Strategy Fund | First $2 billion | .85 | % | ||||
Next $3 billion | .81 | % | |||||
Next $5 billion | .78 | % | |||||
In excess of $10 billion | .66 | % | |||||
Strategic Call Overwriting Fund | All assets | .80 | % | ||||
Select U.S. Equity Fund | All assets | .30 | % | ||||
Select International Equity Fund | All assets | .45 | % |
The administrative fee of up to 0.05% specified in the table below are based on the average daily net assets of each Fund and are
payable monthly to RIFUS.
Notes to Financial Statements 791
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Funds | Administrator* | ||||||
U.S. Core Equity Fund | .05 | % | |||||
U.S. Defensive Equity Fund | .05 | ||||||
U.S. Dynamic Equity Fund | .05 | ||||||
U.S. Strategic Equity Fund | .05 | ||||||
U.S. Large Cap Equity Fund | .05 | ||||||
U.S. Mid Cap Equity Fund | .05 | ||||||
U.S. Small Cap Equity Fund | .05 | ||||||
International Developed Markets Fund | .05 | ||||||
Global Equity Fund | .05 | ||||||
Emerging Markets Fund | .05 | ||||||
Tax-Managed U.S. Large Cap Fund | .05 | ||||||
Tax-Managed U.S. Mid & Small Cap Fund | .05 | ||||||
Tax-Managed International Equity Fund | .05 | ||||||
Global Opportunistic Credit Fund | .05 | ||||||
Unconstrained Total Return Fund | .05 | ||||||
Strategic Bond Fund | .05 | ||||||
Investment Grade Bond Fund | .05 | ||||||
Short Duration Bond Fund | .05 | ||||||
Tax-Exempt High Yield Bond Fund | .05 | ||||||
Tax-Exempt Bond Fund | .05 | ||||||
Commodity Strategies Fund** | .05 | ||||||
Global Infrastructure Fund | .05 | ||||||
Global Real Estate Securities Fund | .05 | ||||||
Multi-Strategy Income Fund | .05 | ||||||
Multi-Asset Growth Strategy Fund | .05 | ||||||
Strategic Call Overwriting Fund | .05 | ||||||
Select U.S. Equity Fund | .05 | ||||||
Select International Equity Fund | .05 |
* Administrative fees are assessed on total Fund assets based on a tiered fee schedule.
** Annual rates do not reflect the consolidated rates inclusive of fees paid by the Fund's Subsidiary.
The following shows the respective totals for advisory and administrative fees for the period ended April 30, 2017.
792 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Advisory | Administrative | |||||
U.S. Core Equity Fund | $ | 1,885,994 | $ | 165,626 | ||
U.S. Defensive Equity Fund | 1,701,602 | 149,432 | ||||
U.S. Dynamic Equity Fund | 1,499,904 | 90,577 | ||||
U.S. Strategic Equity Fund | 10,862,551 | 711,969 | ||||
U.S. Large Cap Equity Fund | 1,091,119 | 75,298 | ||||
U.S. Mid Cap Equity Fund | 628,347 | 37,940 | ||||
U.S. Small Cap Equity Fund | 6,302,113 | 434,849 | ||||
International Developed Markets Fund | 8,614,610 | 594,410 | ||||
Global Equity Fund | 11,435,219 | 585,884 | ||||
Emerging Markets Fund | 12,776,837 | 538,692 | ||||
Tax-Managed U.S. Large Cap Fund | 6,821,391 | 477,420 | ||||
Tax-Managed U.S. Mid & Small Cap Fund | 2,191,188 | 107,995 | ||||
Tax-Managed International Equity Fund | 3,007,753 | 170,897 | ||||
Global Opportunistic Credit Fund | 9,633,979 | 465,358 | ||||
Unconstrained Total Return Fund | 1,946,074 | 93,963 | ||||
Strategic Bond Fund | 12,206,053 | 1,243,025 | ||||
Investment Grade Bond Fund | 1,143,106 | 220,852 | ||||
Short Duration Bond Fund | 1,862,143 | 199,872 | ||||
Tax-Exempt High Yield Bond Fund | 871,477 | 84,180 | ||||
Tax-Exempt Bond Fund | 2,282,955 | 367,547 | ||||
Commodity Strategies Fund | 5,373,527 | 208,827 | ||||
Global Infrastructure Fund | 6,406,428 | 247,539 | ||||
Global Real Estate Securities Fund | 4,657,069 | 281,175 | ||||
Multi-Strategy Income Fund | 3,289,813 | 211,858 | ||||
Multi-Asset Growth Strategy Fund | 574,986 | 32,642 | ||||
Strategic Call Overwriting Fund | 357,253 | 21,566 | ||||
Select U.S. Equity Fund | 1,229,983 | 198,003 | ||||
Select International Equity Fund | 1,711,269 | 183,674 |
RIM has agreed to certain waivers of its advisory and administrative fees as follows:
For the U.S. Strategic Equity Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount of its
advisory fee and then to reimburse the Fund for other direct Fund-level expenses, excluding dividend and interest expenses on
short sales, to the extent that direct Fund-level expenses exceed 0.59% of the average daily net assets of that Fund on an annual
basis. This waiver and reimbursement may not be terminated during the relevant period except with Board approval. Direct Fund-
level expenses for the U.S. Strategic Equity Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees,
extraordinary expenses or the expenses of other investment companies in which the Fund invests which are borne indirectly by the
Fund. The total amount of the waiver for the period ended April 30, 2017 was $3,440,305. There were no reimbursements for the
period ended April 30, 2017.
For the U.S. Large Cap Equity Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount of its
advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses
exceed 0.67% of the average daily net assets of that Fund on an annual basis. This waiver and reimbursement may not be terminated
during the relevant period except with Board approval. Direct Fund-level expenses for the U.S. Large Cap Equity Fund do not
include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary expenses or the expenses of other investment
companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended
April 30, 2017 was $ 277,906. There were no reimbursements for the period ended April 30, 2017.
For the U.S. Mid Cap Equity Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount of its
advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses
exceed 0.77% of the average daily net assets of that Fund on an annual basis. This waiver and reimbursement may not be terminated
during the relevant period except with Board approval. Direct Fund-level expenses for the U.S. Mid Cap Equity Fund do not include
Notes to Financial Statements 793
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
12b-1 fees, shareholder services fees, transfer agency fees, extraordinary expenses or the expenses of other investment companies
in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended April 30,
2017 was $ 211,152. There were no reimbursements for the period ended April 30, 2017.
For the Emerging Markets Fund, RIM has entered into a contractual fee waiver agreement, until February 28, 2018, that results in
an effective advisory fee not to exceed 1.109%. This waiver may not be terminated during the relevant period except with Board
approval. The total amount of the waiver for the period ended April 30, 2017 was $407,866. There were no reimbursements for the
period ended April 30, 2017.
For the Tax-Managed U.S. Mid & Small Cap Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full
amount of its advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level
expenses exceed 1.10% of the average daily net assets of that Fund on an annual basis. This waiver and reimbursement may not
be terminated during the relevant period except with Board approval. Direct Fund-level expenses for the Tax-Managed U.S. Mid &
Small Cap Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary expenses or the expenses
of other investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for
the period ended April 30, 2017 was $ 11,365. There were no reimbursements for the period ended April 30, 2017.
For the Tax-Managed International Equity Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full
amount of its advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level
expenses exceed 0.89% of the average daily net assets of that Fund on an annual basis. This waiver and reimbursement may not be
terminated during the relevant period except with Board approval. Direct Fund-level expenses for the Tax-Managed International
Equity Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary expenses or the expenses of
other investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for
the period ended April 30, 2017 was $ 310,905. There were no reimbursements for the period ended April 30, 2017.
For the Global Opportunistic Credit Fund, RIM has entered into a contractual fee waiver agreement, until February 28, 2018, that
results in an effective advisory fee not to exceed 0.676%. This waiver may not be terminated during the relevant period except with
Board approval. The total amount of the waiver for the period ended April 30, 2017 was $ 3,121,046.
For the Unconstrained Total Return Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount
of its advisory fee and then to reimburse the Fund for other direct Fund-level expenses, excluding extraordinary expenses, to the
extent that direct Fund-level expenses exceed 0.72% of the average daily net assets of that Fund on an annual basis. This waiver
and reimbursement may not be terminated during the relevant period except with Board approval. Direct Fund-level expenses for
the Unconstrained Total Return Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary
expenses or the expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The
total amount of the waiver for the period ended April 30, 2017 was $ 977,065. There were no reimbursements for the period ended
April 30, 2017.
For the Strategic Bond Fund, RIM has entered into a contractual fee waiver agreement, until February 28, 2018, that results in
an effective advisory fee not to exceed 0.466%. This waiver may not be terminated during the relevant period except with Board
approval. The total amount of the waiver for the period ended April 30, 2017 was $ 213,748.
For the Short Duration Bond Fund, RIM has entered into a contractual fee waiver agreement, until February 28, 2018, that results
in an effective advisory fee not to exceed 0.368%. This waiver may not be terminated during the relevant period except with Board
approval. The total amount of the waiver for the period ended April 30, 2017 was $ 339,324.
For the Tax-Exempt High Yield Bond Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount
of its advisory fee and then to reimburse the Fund for other direct Fund-level expenses, including extraordinary expenses, to the
extent that direct Fund-level expenses exceed 0.44% of the average daily net assets of that Fund on an annual basis. This waiver
and reimbursement may not be terminated during the relevant period except with Board approval. Direct Fund-level expenses for
the Tax-Exempt High Yield Bond Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary
expenses or the expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The
total amount of the waiver for the period ended April 30, 2017 was $ 344,446. There were no reimbursements for the period ended
April 30, 2017.
For the Commodity Strategies Fund, RIM has entered into a contractual fee waiver agreement, until February 28, 2018, that results
in an effective advisory fee not to exceed 0.8025%. This waiver may not be terminated during the relevant period except with Board
approval. The total amount of the waiver for the period ended April 30, 2017 was $ 1,609,658.
794 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
For Cayman Commodity Strategies Fund Ltd., a wholly-owned subsidiary of the Fund, (the “Commodity Strategies Subsidiary”)
pays RIM an advisory fee and pays RIFUS an administrative fee at the annual rates of up to 1.25% and 0.05%, respectively,
of the Commodity Strategies Subsidiary’s net assets (the “Commodity Strategies Subsidiaries Fees”). Pursuant to a contractual
agreement with the Commodity Strategies Fund, RIM and RIFUS have agreed to permanently waive the portion of the advisory
and the administrative fees paid by the Commodity Strategies Fund to RIM and RIFUS, respectively, in the amount equal to the
amount of the Commodity Strategies Subsidiary Fees received by RIM and RIFUS, if any. This waiver may not be terminated by
RIM and RIFUS. The total amount of the advisory waiver for the period ended April 30, 2017 was $877,275. The total amount of
the administrative fee waiver for the period ended April 30, 2017 was $35,091.
For the Global Infrastructure Fund, RIM has entered into a contractual fee waiver agreement, until February 28, 2018, that results
in an effective advisory fee not to exceed 0.90%. This waiver may not be terminated during the relevant period except with Board
approval. The total amount of the waiver for the period ended April 30, 2017 was $ 1,793,800.
For the Multi-Strategy Income Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount of its
advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses
exceed 0.65% of the average daily net assets of that Fund on an annual basis. This waiver and reimbursement may not be terminated
during the relevant period except with Board approval. Direct Fund-level expenses for the Multi-Strategy Income Fund do not
include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary expenses or the expenses of other investment
companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended
April 30, 2017 was $ 1,425,681. There were no reimbursements for the period ended April 30, 2017.
For the Multi-Asset Growth Strategy Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount
of its advisory fee and then to reimburse the Fund for other direct Fund-level expenses and expenses of the Fund's wholly-owned
subsidiary, the Cayman Multi-Asset Growth Strategy Fund, Ltd., borne indirectly by the Fund to the extent that direct Fund-level
expenses exceed 0.88% of the average daily net assets of the Fund on an annual basis. This waiver and reimbursement may not
be terminated during the relevant period except with Board approval. Direct Fund-level expenses do not include 12b-1 fees,
shareholder services fees, transfer agency fees, extraordinary expenses or the expenses of other investment companies in which the
Fund invests which are borne indirectly by the Fund. The total amount of the advisory waiver for the period ended April 30, 2017
was $ 133,433. There were no reimbursements for the period ended April 30, 2017.
For the Strategic Call Overwriting Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount
of its advisory fee and then to reimburse the Fund for other direct Fund-level expenses, to the extent such direct Fund-level
expenses exceed 0.77% of the average daily net assets of that Fund on an annual basis. This waiver and reimbursement may not
be terminated during the relevant period except with Board approval. Direct Fund-level expenses for the Strategic Call Overwriting
Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary expenses or the expenses of other
investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the
period ended April 30, 2017 was $ 145,691.
For the Select U.S. Equity Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount of its
advisory fee and then to reimburse the Fund for other direct Fund-level expenses, excluding dividend and interest expense on short
sales, to the extent such direct Fund-level expenses exceed 0.40% of the average daily net assets of that Fund on an annual basis.
This waiver and reimbursement may not be terminated during the relevant period except with Board approval. Direct Fund-level
expenses for the Select U.S. Equity Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, extraordinary
expenses or the expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The
total amount of the waiver for the period ended April 30, 2017 was $105,667. There were no reimbursements for the period ended
April 30, 2017.
For the Select International Equity Fund, RIM has contractually agreed, until February 28, 2018, to waive up to the full amount of
its advisory fee and then to reimburse the Fund for other direct Fund-level expenses, excluding dividend and interest expense on
short sales, to the extent such direct Fund-level expenses exceed 0.49% of the average daily net assets of that Fund on an annual
basis. This waiver and reimbursement may not be terminated during the relevant period except with Board approval. Direct Fund-
level expenses for the Select International Equity Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees,
extraordinary expenses or the expenses of other investment companies in which the Fund invests which are borne indirectly by the
Fund. The total amount of the waiver for the period ended April 30, 2017 was $410,574. There were no reimbursements for the
period ended April 30, 2017.
RIM does not have the ability to recover amounts waived or reimbursed from previous periods.
Notes to Financial Statements 795
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Transfer and Dividend Disbursing Agent
RIFUS serves as transfer agent and provides dividend disbursing services to the Funds. For this service, RIFUS is paid a fee based
upon the average daily net assets of the Funds for transfer agency and dividend disbursing services. Transfer agency fees are class-
level expenses and may differ by class. RIFUS retains a portion of this fee for services provided to the Funds and pays the balance
to unaffiliated agents who assist in providing these services. Transfer agency fees paid by the Funds presented herein for the period
ended April 30, 2017 were as follows:
Amount | |||
U.S. Core Equity Fund | $ | 584,535 | |
U.S. Defensive Equity Fund | 370,503 | ||
U.S. Dynamic Equity Fund | 47,705 | ||
U.S. Strategic Equity Fund | 2,948,124 | ||
U.S. Large Cap Equity Fund | 311,748 | ||
U.S. Mid Cap Equity Fund | 157,087 | ||
U.S. Small Cap Equity Fund | 1,366,073 | ||
International Developed Markets Fund | 2,316,602 | ||
Global Equity Fund | 1,772,155 | ||
Emerging Markets Fund | 1,763,575 | ||
Tax-Managed U.S. Large Cap Fund | 1,976,612 | ||
Tax-Managed U.S. Mid & Small Cap Fund | 447,181 | ||
Tax-Managed International Equity Fund | 707,524 | ||
Global Opportunistic Credit Fund | 1,346,803 | ||
Unconstrained Total Return Fund | 69,358 | ||
Strategic Bond Fund | 4,002,881 | ||
Investment Grade Bond Fund | 691,163 | ||
Short Duration Bond Fund | 647,954 | ||
Tax-Exempt High Yield Bond Fund | 348,495 | ||
Tax-Exempt Bond Fund | 1,521,970 | ||
Commodity Strategies Fund | 528,786 | ||
Global Infrastructure Fund | 822,561 | ||
Global Real Estate Securities Fund | 1,050,065 | ||
Multi-Strategy Income Fund | 622,926 | ||
Multi-Asset Growth Strategy Fund | 135,291 | ||
Strategic Call Overwriting Fund | 89,313 | ||
Select U.S. Equity Fund | 80,614 | ||
Select International Equity Fund | 37,113 |
RIFUS has contractually agreed to waive, through February 28, 2018, a portion of its transfer agency fees for certain classes of
certain Funds as set forth below:
796 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Funds/Classes | Waivers | |
U.S. Core Equity Fund-Class I & S | .04 | % |
U.S. Defensive Equity Fund-Class I & S | .04 | |
U.S. Dynamic Equity Fund-Class I & S | .04 | |
U.S. Strategic Equity Fund-Class A, C, E, & S | .02 | |
U.S. Small Cap Equity Fund-Class I & S | .04 | |
U.S. Small Cap Equity Fund-Class R6 | .02 | |
International Developed Markets Fund-Class I & S | .04 | |
Global Equity Fund-Class T | .10 | |
Emerging Markets Fund-Class A, C, E, R6 & S | .02 | |
Tax-Managed U.S. Large Cap Fund-Class T | .10 | |
Tax-Managed U.S. Mid & Small Cap Fund-Class A | .02 | |
Tax-Managed U.S. Mid & Small Cap Fund-Class C,E & S | .05 | |
Tax-Managed International Equity Fund-Class T | .10 | |
Global Opportunistic Credit Fund-Class A,C,E & S | .12 | |
Unconstrained Total Return Fund-Class T | .10 | |
Strategic Bond Fund-Class A, C, E | .04 | |
Strategic Bond Fund-Class I & S | .06 | |
Strategic Bond Fund-Class R6 | .02 | |
Investment Grade Bond Fund-Class I & S | .04 | |
Investment Grade Bond Fund-Class R6 | .02 | |
Short Duration Bond Fund-Class A,C,E & S | .12 | |
Short Duration Bond Fund-Class R6 | .02 | |
Tax-Exempt Bond Fund-Class A | .02 | |
Tax-Exempt Bond Fund-Class C,E & S | .06 | |
Commodity Strategies Fund-Class A,C,E & S | .01 | |
Global Infrastructure Fund-Class A,C,E & S | .02 | |
Global Real Estate Securities Fund-Class R6 | .02 | |
Global Real Estate Securities Fund-Class T | .10 | |
Multi-Strategy Income Fund-Class T | .10 | |
Multi-Asset Growth Strategy Fund-Class T | .10 | |
Select U.S. Equity Fund-Class R6 | .02 | |
Select U.S. Equity Fund-Class T | .15 | |
Select International Fund-Class R6 | .02 | |
Select International Fund-Class T | .15 |
RIFUS has contractually agreed to waive, through February 28, 2019, a portion of its transfer agency fees for certain classes of
certain Funds as set forth below:
Funds/Classes | Waivers | |
U.S. Strategic Equity Fund--Class T | .12 | % |
U.S. Small Cap Equity Fund-Class T | .14 | |
International Developed Markets Fund-Class T | .14 | |
Emerging Markets Fund-Class T | .12 | |
Tax-Managed U.S. Mid & Small Cap Fund-Class T | .15 | |
Global Opportunistic Credit Fund-Class T | .17 | |
Strategic Bond Fund-Class T | .16 | |
Investment Grade Bond Fund-Class T | .14 | |
Short Duration Bond Fund-Class T | .17 | |
Tax-Exempt Bond Fund-Class T | .16 | |
Commodity Strategies Fund-Class T | .11 | |
Global Infrastructure Fund-Class T | .12 |
For the period ended April 30, 2017, the total transfer agent fee waivers are as follows:
Amount | |||
U.S. Core Equity Fund | $ | 38,766 | |
U.S. Defensive Equity Fund | 21,521 | ||
U.S. Dynamic Equity Fund | 2,172 | ||
U.S. Strategic Equity Fund | 295,072 |
Notes to Financial Statements 797
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Amount | |||
U.S. Small Cap Equity Fund | 88,229 | ||
International Developed Markets Fund | 157,929 | ||
Global Equity Fund | 158 | ||
Emerging Markets Fund | 61,339 | ||
Tax-Managed U.S. Large Cap Fund | 355 | ||
Tax-Managed U.S. Mid & Small Cap Fund | 110,148 | ||
Tax-Managed International Equity Fund | 245 | ||
Global Opportunistic Credit Fund | 800,299 | ||
Unconstrained Total Return Fund | 73 | ||
Strategic Bond Fund | 848,595 | ||
Investment Grade Bond Fund | 45,530 | ||
Short Duration Bond Fund | 386,373 | ||
Tax-Exempt High Yield Bond Fund | 134 | ||
Tax-Exempt Bond Fund | 452,512 | ||
Commodity Strategies Fund | 26,272 | ||
Global Infrastructure Fund | 81,886 | ||
Global Real Estate Securities Fund | 340 | ||
Multi-Strategy Income Fund | 115 | ||
Multi-Asset Growth Strategy Fund | 141 | ||
Select U.S. Equity Fund | 2,313 | ||
Select International Equity Fund | 686 |
Distributor and Shareholder Servicing
Russell Investments Financial Services, LLC (the “Distributor”), a wholly owned subsidiary of RIM, serves as a distributor for RIC,
pursuant to a distribution agreement with RIC.
The Investment Company has a distribution plan pursuant to Rule 12b-1 (the “Plan”) under the Investment Company Act. Under
this Plan, the Investment Company is authorized to make payments to the Distributor, or any selling agents, as defined in the Plan,
for sales support services provided and related expenses incurred which are primarily intended to result in the sale of the Class A
and Class C shares subject to the Plan. 12b-1 distribution payments are 0.25% or 0.75% of the average daily net assets of a Fund’s
Class A or Class C shares, respectively, on an annual basis.
In addition, the Investment Company has adopted a Shareholder Services Plan (the “Services Plan”) under which the Funds
may make payments to the Distributor or any servicing agent for any activities or expenses primarily intended to assist, support
or service the servicing agents’ clients who beneficially own Class C or Class E shares of the Funds. The shareholder servicing
payments shall not exceed 0.25% of the average daily net assets of a Fund’s Class C and Class E shares on an annual basis.
Pursuant to the rules of the Financial Industry Regulatory Authority (“FINRA”), these limitations are imposed at the class level of
each Fund rather than on a per shareholder basis. Therefore, long-term shareholders may pay more than the economic equivalent
of the maximum sales charges permitted by FINRA.
The aggregate initial sales charges, deferred sales charges and asset-based sales charges on Class A, Class C and Class
E Shares of the Funds may not exceed 7.25%, 6.25% and 6.25%, respectively, of total gross sales, and are subject to
certain exclusions. For the period ended April 30, 2017, the Distributor retained the following amounts in sales charges:
798 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Contingent Deferred Sales Charges | Class A Shares | ||
U.S. Core Equity Fund | $ | — | |
U.S. Defensive Equity Fund | — | ||
U.S. Dynamic Equity Fund | — | ||
U.S. Strategic Equity Fund | — | ||
U.S. Large Cap Equity Fund | 6 | ||
U.S. Mid Cap Equity Fund | 1 | ||
U.S. Small Cap Equity Fund | 2 | ||
International Developed Markets Fund | 26 | ||
Global Equity Fund | 130 | ||
Emerging Markets Fund | 11 | ||
Tax-Managed U.S. Large Cap Fund | 507 | ||
Tax-Managed U.S. Mid & Small Cap Fund | 162 | ||
Tax-Managed International Equity Fund | 62 | ||
Global Opportunistic Credit Fund | — | ||
Unconstrained Total Return Fund | — | ||
Strategic Bond Fund | 16 | ||
Investment Grade Bond Fund | — | ||
Short Duration Bond Fund | 242 | ||
Tax-Exempt High Yield Bond Fund | — | ||
Tax-Exempt Bond Fund | 46 | ||
Commodity Strategies Fund | 68 | ||
Global Infrastructure Fund | — | ||
Global Real Estate Securities Fund | 3 | ||
Multi-Strategy Income Fund | — |
For the period ended April 30, 2017, the sales commissions paid to the selling agents for the sales of Class A shares were as follows:
Notes to Financial Statements 799
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Aggregate | Class A Front-End | |||||
Front-End | Sales Charges | |||||
Sales Charges | Retained by | |||||
on Class A Shares | Distributor | |||||
U.S. Core Equity Fund | $ | 4,278 | $ | 662 | ||
U.S. Defensive Equity Fund | 36,103 | 5,831 | ||||
U.S. Dynamic Equity Fund | 14,060 | 1,943 | ||||
U.S. Strategic Equity Fund | 7,424 | 1,070 | ||||
U.S. Large Cap Equity Fund | 17,546 | 3,167 | ||||
U.S. Mid Cap Equity Fund | 4,394 | 494 | ||||
U.S. Small Cap Equity Fund | 6,528 | 965 | ||||
International Developed Markets Fund | 11,638 | 2,049 | ||||
Global Equity Fund | 5,590 | 934 | ||||
Emerging Markets Fund | 12,305 | 1,938 | ||||
Tax-Managed U.S. Large Cap Fund | 47,373 | 8,565 | ||||
Tax-Managed U.S. Mid & Small Cap Fund | 17,357 | 3,050 | ||||
Tax-Managed International Equity Fund | 8,952 | 1,726 | ||||
Global Opportunistic Credit Fund | 3,670 | 741 | ||||
Unconstrained Total Return Fund | 97 | 19 | ||||
Strategic Bond Fund | 16,145 | 3,297 | ||||
Investment Grade Bond Fund | 2,849 | 569 | ||||
Short Duration Bond Fund | 4,385 | 866 | ||||
Tax-Exempt High Yield Bond Fund | 2,183 | 441 | ||||
Tax-Exempt Bond Fund | 16,356 | 3,328 | ||||
Commodity Strategies Fund | 12,996 | 2,477 | ||||
Global Infrastructure Fund | 35,169 | 5,345 | ||||
Global Real Estate Securities Fund | 19,623 | 3,264 | ||||
Multi-Strategy Income Fund | 39,313 | 7,002 | ||||
Strategic Call Overwriting Fund | — | — | ||||
Select U.S. Equity Fund | — | — | ||||
Select International Equity Fund | — | — |
Affiliated Brokerage Commissions
The Funds effect certain transactions through Russell Investments Implementation Services, LLC (“RIIS”). RIIS is a registered
broker and investment adviser and an affiliate of RIM. RIIS uses a multi-venue trade management approach whereby RIIS allocates
trades among RIIS’ network of independent brokers for execution, clearing and other services. Trades placed through RIIS and its
independent brokers are made (i) to manage trading associated with changes in money managers, rebalancing across existing money
managers, cash flows and other portfolio transitions, (ii) to execute portfolio securities transactions for the portion of each Fund’s
assets that RIM determines not to allocate to money managers, including assets RIM may manage to effect a Fund’s investment
strategies and/or to modify a Fund's overall portfolio characteristics and for each Fund’s cash reserves, (iii) to execute portfolio
securities transactions for the portion of a Fund’s assets that RIM manages based upon model portfolios provided by the Fund’s
non-discretionary managers or (iv) to execute money manager’s portfolio securities transactions for the segment of a Fund’s portfolio
assigned to the money manager. RIM has authorized RIIS to effect certain futures, swaps, OTC derivative transactions, and cleared
swaps, including foreign currency spots, forwards and options trading on behalf of the Funds.
The Funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified conditions outlined
in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the
Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment
adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a -7 of the Investment
Company Act. Further, as defined under the procedures each transaction is effected at the current market value.
During the period ended April 30, 2017, the Funds engaged in purchases and sales of securities pursuant to Rule 17a -7 of the
Investment Company Act, as follows (amounts in thousands):
800 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Purchases | Sales | ||||||
Global Equity Fund | $ | 936 | $ | — | |||
Tax-Exempt High Yield Bond Fund | — | 5,209 | |||||
Unconstrained Total Return Fund | 60,432 | — |
Board of Trustees
The Russell Investments Fund Complex consists of RIC, which has 42 funds and Russell Investment Funds ("RIF"), which has 9
funds. Each of the Trustees is a Trustee of RIC and RIF. The Russell Investments Fund Complex compensates each Trustee who is
not an employee of RIM or its affiliates. The costs of paying Trustee compensation and expenses are allocated to each Fund based
on its net assets relative to other funds in the Russell Investments Fund Complex.
For the period ended April 30, 2017 the total amount of regular and special compensation paid to the Trustees by the Russell
Investments Fund Complex was $1,344,126.
6. Federal Income Taxes
At April 30, 2017, the following Funds had net tax basis capital loss carryforwards which may be applied against any net realized
taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first. Available capital loss
carryforwards and expiration dates are as follows:
No Expiration | ||||||||||||||
Funds | 10/31/2016 | 10/31/2017 | 10/31/2018 | 10/31/2019 | Short Term | Long-Term | Totals | |||||||
International | ||||||||||||||
Developed Markets | $ | — | $ | 112,332,658 | $ | 51,503,855 | $ | — | $ | 38,965,195 | $ | 33,987,859 | $ | 236,789,567 |
Fund | ||||||||||||||
Emerging Markets | ||||||||||||||
Fund | — | — | — | — | 51,156,348 | 133,827,882 | 184,984,230 | |||||||
Tax-Managed U.S. | ||||||||||||||
Large Cap Fund | — | — | — | — | 26,920,819 | — | 26,920,819 | |||||||
Tax-Managed U.S. Mid | ||||||||||||||
& Small Cap Fund | — | — | — | — | 6,842,223 | — | 6,842,223 | |||||||
Tax-Managed | ||||||||||||||
International Equity | — | — | — | — | 62,425,052 | 11,733,844 | 74,158,896 | |||||||
Fund | ||||||||||||||
Global Opportunistic | ||||||||||||||
Credit Fund | — | — | — | — | 20,216,628 | 31,194,961 | 51,411,589 | |||||||
Short Duration Bond | ||||||||||||||
Fund | — | — | — | — | — | 648,215 | 648,215 | |||||||
Tax-Exempt Bond | ||||||||||||||
Fund | — | — | — | 221,229 | — | — | 221,229 | |||||||
Commodity Strategies | ||||||||||||||
Fund | — | — | — | — | 81,606 | — | 81,606 | |||||||
Multi-Strategy Income | ||||||||||||||
Fund | — | — | — | — | 6,588,266 | — | 6,588,266 | |||||||
Strategic Call | ||||||||||||||
Overwriting Fund | — | — | — | — | 6,780,082 | 5,878,967 | 12,659,049 | |||||||
Select U.S. Equity | ||||||||||||||
Fund | — | — | — | — | 2,120,243 | 813,495 | 2,933,738 | |||||||
Select International | ||||||||||||||
Equity Fund | — | — | — | — | 56,775,810 | 29,942,743 | 86,718,553 |
Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses
incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those
future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment
capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being
considered all short-term as under previous law.
Notes to Financial Statements 801
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
7. Record Ownership
As of April 30, 2017, the following table includes shareholders of record with greater than 10% of the total outstanding shares of
each respective Fund:
# of Shareholders | % | |||
U.S. Core Equity Fund | 3 | 72.4 | ||
U.S. Defensive Equity Fund | 2 | 28.0 | ||
U.S. Dynamic Equity Fund | 3 | 72.5 | ||
U.S. Strategic Equity Fund | 2 | 61.1 | ||
U.S. Large Cap Equity Fund | 1 | 95.9 | ||
U.S. Mid Cap Equity Fund | 1 | 95.4 | ||
U.S. Small Cap Equity Fund | 2 | 47.2 | ||
International Developed Markets Fund | 4 | 82.3 | ||
Global Equity Fund | 2 | 40.4 | ||
Emerging Markets Fund | 3 | 58.1 | ||
Tax-Managed U.S. Large Cap Fund | 4 | 77.0 | ||
Tax-Managed U.S. Mid & Small Cap Fund | 4 | 77.9 | ||
Tax-Managed International Equity Fund | 3 | 66.8 | ||
Global Opportunistic Credit Fund | 2 | 49.4 | ||
Unconstrained Total Return Fund | 2 | 44.7 | ||
Strategic Bond Fund | 3 | 57.9 | ||
Investment Grade Bond Fund | 3 | 67.2 | ||
Short Duration Bond Fund | 3 | 56.1 | ||
Tax-Exempt High Yield Bond Fund | 3 | 69.4 | ||
Tax-Exempt Bond Fund | 4 | 80.1 | ||
Commodity Strategies Fund | 3 | 61.0 | ||
Global Infrastructure Fund | 4 | 69.2 | ||
Global Real Estate Securities Fund | 3 | 69.1 | ||
Multi-Strategy Income Fund | 2 | 39.7 | ||
Multi-Asset Growth Strategy Fund | 4 | 67.3 | ||
Strategic Call Overwriting Fund | 1 | 93.3 | ||
Select U.S. Equity Fund | 4 | 85.5 | ||
Select International Equity Fund | 4 | 80.9 |
8. Restricted Securities
Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not
registered under the Act. The most common types of restricted securities are those sold under Rule 144A of the Act and commercial
paper sold under Section 4(2) of the Act.
A Fund may invest a portion of its net assets not to exceed 15% in securities that are illiquid. This limitation is applied at the time
of purchase. Illiquid securities are securities that may not be readily marketable, and that cannot be sold within seven days in
the ordinary course of business at the approximate amount at which the Fund has valued the securities. Restricted securities are
generally considered to be illiquid.
See each Fund’s Schedule of Investments for a list of restricted securities held by a Fund that are illiquid.
9. Commitments and Contingencies
Certain Funds enter into certain credit agreements, all or a portion of which may be unfunded. The Funds are obligated to fund
these loan commitments at the borrowers' discretion. Unfunded loan commitments and funded portions of credit agreements are
marked to market daily and any unrealized appreciation or depreciation is included in the Statements of Assets and Liabilities and
the Statements of Operations. Funded portions of credit agreements are presented in the Schedules of Investments. For the period
ended April 30, 2017, the Funds had unfunded bank loan commitments as follows:
Unfunded Bank Loan | |||
Commitments | |||
Global Opportunistic Credit Fund | $ | 11,423,045 | |
Unconstrained Total Return Fund | 7,963,016 | ||
Short Duration Bond Fund | 7,097,203 | ||
Multi-Strategy Income Fund | 8,802,307 | ||
Multi-Asset Growth Strategy Fund | 5,731,407 |
802 Notes to Financial Statements
Russell Investment Company
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Pending Legal Proceedings
The Strategic Bond Fund is one of several defendants in a bankruptcy adversary avoidance claim in a Consolidated Multidistrict
Action styled In Re: Motors Liquidation Company, et al., Debtors, Motors Liquidation Company Avoidance Action Trust, etc., v.
JPMorgan Chase Bank, et al., United States District Bankruptcy Court for the Southern District of New York. The claim relates
to alleged improper payments to the Fund as a participating lender in a term loan provided to General Motors Company due to
the Fund’s security interests not being properly perfected. The Fund has filed answers denying liability and a crossclaim against
the administrative agent for the term loan lenders seeking damages arising from the agent’s failure to properly perfect the security
interests of the lenders.
10. Subsequent Events
Management has evaluated the events and/or transactions that have occurred through the date the financial statements were issued
and noted no items requiring adjustments of the financial statements or additional disclosures or except the following:
On May 1, 2017, the Board declared dividends payable from net investment income. Dividends were paid on May 3, 2017, to
shareholder of record effective with the opening of business on May 2, 2017.
On June 1, 2017, the Board declared dividends payable from net investment income. Dividends were paid on June 5, 2017, to
shareholder of record effective with the opening of business on June 2, 2017.
Notes to Financial Statements 803
Russell Investment Company
Affiliated Brokerage Transactions — April 30, 2017 (Unaudited)
As mentioned in the Note 5 in the Notes to Financial Statements contained in this annual report, the Funds utilize Russell Investments
Implementation Services, LLC (“RIIS”) and its independent brokers. RIIS is a registered broker dealer and investment adviser and
an affiliate with RIM. Trades placed through RIIS and its independent brokers are made (i) to manage trading associated with changes
in money manager, rebalancing across existing money managers, cash flows and other portfolio transitions, (ii) to execute portfolio
securities transactions for each Fund’s assets that RIM determines not to allocate to money managers including assets RIM may
manage to manage risk in a Fund’s investment portfolio and for each Fund’s cash reserves or (iii) to execute a money manager’s portfolio
securities transactions for the segment of a Fund’s portfolio assigned to the money manager. RIM has authorized RIIS to effect certain
futures, swaps, over-the-counter derivatives transactions, and cleared swaps, including foreign currency spot, forwards and options
trading on behalf of the Funds.
Amounts retained by RIIS for the period ended April 30, 2017 were as follows:
Affiliated Broker | Fund Name | 2017 | |
RIM | |||
U.S. Core Equity Fund | $ | 42,424 | |
U.S. Defensive Equity Fund | 38,732 | ||
U.S. Dynamic Equity Fund | 38,569 | ||
U.S. Strategic Equity Fund | 177,450 | ||
U.S. Large Cap Equity Fund | 59,277 | ||
U.S. Mid Cap Equity Fund | 11,415 | ||
U.S. Small Cap Equity Fund | 300,290 | ||
International Developed Markets Fund | 485,178 | ||
Global Equity Fund | 235,241 | ||
Emerging Markets Fund | 267,476 | ||
Tax-Managed U.S. Large Cap Fund | 32,072 | ||
Tax-Managed U.S. Mid & Small Cap Fund | 17,480 | ||
Tax-Managed International Equity Fund | 43,028 | ||
Global Infrastructure Fund | 39,566 | ||
Global Real Estate Securities Fund | 26,356 | ||
Multi-Strategy Income Fund | 120,777 | ||
Multi-Asset Growth Strategy Fund | 125,152 | ||
Strategic Call Overwriting Fund | 768 | ||
Select U.S. Equity Fund | 17,578 | ||
Select International Equity Fund | 17,132 |
804 Affiliated Brokerage Transactions
Russell Investment Company
Basis for Approval of Investment Advisory Contracts — (Unaudited)
The Board received the following proposals from RIM: (i) at a meeting held on December 6, 2016, to effect Money Manager changes
for the U.S. Defensive Equity Fund, U.S. Large Cap Equity Fund, Tax-Managed U.S. Large Cap Fund, Commodity Strategies Fund
and Multi-Strategy Income Fund, and at that same meeting to approve a new portfolio management contract for the U.S. Core Equity
Fund, U.S. Dynamic Equity Fund and U.S. Strategic Equity Fund resulting from a change of control for one of each Fund’s Money
Managers; and (ii) at a meeting held on February 28, 2017, to effect Money Manager changes for the International Developed Markets
Fund, Global Equity Fund, Multi-Strategy Income Fund and Multi-Asset Growth Fund, and at that same meeting to approve a new
portfolio management contract for the U.S. Mid Cap Equity Fund and U.S. Large Cap Equity Fund resulting from a change of control
for one of each Fund’s Money Managers. In the case of each proposed change, the Trustees approved the terms of the proposed portfolio
management contract based upon RIM’s recommendation to hire the Money Manager at the proposed fee rate; information as to the
reason for the proposed change; information as to the Money Manager’s role in the management of the Fund’s investment portfolio
(including the amount of Fund assets to be allocated to the Money Manager or managed pursuant to the Money Manager’s strategy) and
RIM’s evaluation of the anticipated quality of the investment advisory services to be provided by the Money Manager; information as
to any significant business relationships between the Money Manager and RIM or Russell Investments Financial Services, LLC, the
Fund’s underwriter; the CCO’s evaluation of the Money Manager’s compliance program, policies and procedures, and certification that
they were consistent with applicable legal standards; RIM’s explanation as to the lack of relevance of Money Manager profitability to
the evaluation of portfolio management contracts with Money Managers because the willingness of Money Managers to serve in such
capacity depends upon arm’s-length negotiations with RIM; RIM’s awareness of the standard fee rates charged by the Money Manager
to other clients; RIM’s belief that the proposed investment advisory fees would be reasonable in light of the anticipated quality of
investment advisory services to be rendered; the increase or decrease in aggregate Money Manager fees to be paid by RIM from its
advisory fee as a result of the engagement of the Money Manager; and the expected costs of transitioning Fund assets to the Money
Manager or its strategy. The Trustees’ approval also reflected their findings at prior meetings, including their December 2015 meeting
in connection with their evaluation and approval of the Funds’ existing investment advisory agreements with RIM and then current
Money Managers for the Funds, as well as information received throughout the course of the year, regarding the reasonableness of
the aggregate investment advisory fees paid by the Funds, and the fact that the aggregate investment advisory fees paid by the Funds
would not increase as a result of the implementation of the proposed Money Manager changes because the Money Manager’s investment
advisory fees are paid by RIM.
Basis for Approval of Investment Advisory Contracts 805
Russell Investment Company
Shareholder Requests for Additional Information — April 30, 2017 (Unaudited)
A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third
quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii)
at https://russellinvestments.com; and (iii) at the Securities and Exchange Commission’s Office of Investor Education and Advocacy
(formerly, the Public Reference room).
The Board has delegated to RIM, as RIC’s investment adviser, the primary responsibility for monitoring, evaluating and voting proxies
solicited by or with respect to issuers of securities in which assets of the may be invested. RIM has established a proxy voting committee
and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”). The Funds maintain
a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders and third parties of
information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio Holdings Disclosure
Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional Information (“SAI”). The
SAI and information regarding how the voted proxies relating to portfolio securities during the most recent 12-month period ended June
30, 2016 are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii) at https://russellinvestments.com;
and (iii) on the Securities and Exchange Commission’s website at www. sec.gov.
To reduce expenses, we may mail only one copy of the Funds’ prospectuses and each annual and semi-annual report to those addresses
shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your Financial Intermediary.
Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please
contact your Financial Intermediary for further details.
Financial statements of the can be obtained at no charge by calling the Funds at (800) 787-7354.
806 Shareholder Requests for Additional Information
Russell Investment Company
Disclosure of Information about Fund Trustees and Officers — April 30, 2017
(Unaudited)
The following tables provide information for each officer and Trustee of the Russell Investments Fund Complex. The Russell
Investments Fund Complex consists of Russell Investment Company RIC, which has 42 funds and Russell Investment
Funds (“RIF”), which has 9 funds. Each of the Trustees is a trustee of RIC and RIF. The first table provides information for the
Independent Trustees. The second table provides information for the Trustee Emeritus. The third table provides information for the
officers. Furthermore, each Trustee possesses the following specific attributes: Mr. Alston has business, financial and investment
experience as a senior executive of an international real estate firm and is trained as a lawyer; Ms. Blake has had experience as
a certified public accountant and has had experience as a member of boards of directors/trustees of other investment companies;
Ms. Burgermeister has had experience as a certified public accountant and as a member of boards of directors/trustees of other
investment companies and has been determined by the Board to be an “audit committee financial expert”; Mr. Connealy has had
experience with other investment companies and their investment advisers, first as a partner in the investment management practice
of PricewaterhouseCoopers LLP and, subsequently, as the senior financial executive of two other investment organizations sponsoring
and managing investment companies; Ms. Krysty has had business, financial and investment experience as the founder and senior
executive of a registered investment adviser focusing on high net worth individuals as well as a certified public accountant and a
member of the boards of other corporations and non-profit organizations; Mr. Tennison has had business, financial and investment
experience as a senior executive of a corporation with international activities and was trained as an accountant; and Mr. Thompson
has had experience in business, governance, investment and financial reporting matters as a senior executive of an organization
sponsoring and managing other investment companies, and, subsequently, has served as a board member of other investment companies.
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other |
Age, | With Fund and | of | During the | Portfolios | Directorships |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee |
Time Served | Investments | During the | |||
Fund | Past 5 Years | ||||
Complex | |||||
Overseen | |||||
by Trustee | |||||
INDEPENDENT TRUSTEES | |||||
Thaddas L. Alston, | Trustee since 2006 | Appointed until | Senior Vice President, Larco | 51 | Until October |
Born April 7, 1945 | successor is | Investments, Ltd. (real estate firm) | 2015, Trustee, | ||
1301 Second Avenue, | duly elected and | Russell Exchange | |||
18th Floor, Seattle, WA | qualified | Traded Funds | |||
98101 | Trust |
Disclosure of Information about Fund Trustees and Officers 807
Russell Investment Company
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other | |
Age, | With Fund and | of | During the | Portfolios | Directorships | |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee | |
Time Served | Investments | During the | ||||
Fund | Past 5 Years | |||||
Complex | ||||||
Overseen | ||||||
by Trustee | ||||||
Kristianne Blake, | Trustee since 2000 | Appointed until | • Director and Chairman of the | 51 | • Director, Avista | |
Born January 22, 1954 | Chairman since 2005 | successor is | Audit Committee, Avista Corp | Corp (electric | ||
1301 Second Avenue, | duly elected and | (electric utilities) | utilities) | |||
18th Floor, Seattle, WA | qualified | • Regent, University of | • Until June 30, | |||
98101 | Approved annually | Washington | 2014, Director, | |||
• President, Kristianne Gates | Ecova (total | |||||
Blake, P.S. (accounting services) | energy and | |||||
• Until June 30, 2014, Director, | sustainability | |||||
Ecova (total energy and | management) | |||||
sustainability management) | • Until December | |||||
• Until December 31, 2013, | 31, 2013, | |||||
Trustee and Chairman of | Trustee, | |||||
the Operations Committee, | Principal | |||||
Principal Investors Funds and | Investors Funds | |||||
Principal Variable Contracts | (investment | |||||
Funds (investment company) | company) | |||||
• From April 2004 through | • Until December | |||||
December 2012, Director, Laird | 31, 2013, | |||||
Norton Wealth Management | Trustee Principal | |||||
and Laird Norton Tyee Trust | Variable | |||||
(investment company) | Contracts Funds | |||||
(investment | ||||||
company) | ||||||
• From April | ||||||
2004 through | ||||||
December 2012, | ||||||
Director, Laird | ||||||
Norton Wealth | ||||||
Management and | ||||||
Laird Norton | ||||||
Tyee Trust | ||||||
(investment | ||||||
company) | ||||||
• Until October | ||||||
2015, Trustee, | ||||||
Russell | ||||||
Exchange | ||||||
Traded Funds | ||||||
Trust | ||||||
* | Each Trustee is subject to mandatory retirement at age 75. |
808 Disclosure of Information about Fund Trustees and Officers
Russell Investment Company
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other |
Age, | With Fund and | of | During the | Portfolios | Directorships |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee |
Time Served | Investments | During the | |||
Fund | Past 5 Years | ||||
Complex | |||||
Overseen | |||||
by Trustee | |||||
INDEPENDENT TRUSTEES (continued) | |||||
Cheryl Burgermeister, | Trustee since 2012 | Appointed until | • Retired | 51 | • Trustee and |
Born June 26, 1951 | Chairman of the | successor is | • Trustee and Chairperson of | Chairperson of | |
1301 Second Avenue, | Audit Committee | duly elected | Select Sector SPDR Funds | Select Sector | |
18th Floor, Seattle, WA | since 2017 | and qualified | (investment company) | SPDR Funds | |
98101 | Appointed until | • Until December 31, 2014, | (investment | ||
successor is | Chairperson of Audit | company) | |||
duly elected and | Committee, Select Sector SPDR | • From August | |||
qualified | Funds (investment company) | 2012 through | |||
May 6, 2016, | |||||
Trustee, ALPS | |||||
Series Trust | |||||
(investment | |||||
company) | |||||
• Until December | |||||
31, 2014, | |||||
Chairperson | |||||
of Audit | |||||
Committee, | |||||
Select Sector | |||||
SPDR Funds | |||||
(investment | |||||
company) | |||||
• Until October | |||||
2015, Trustee, | |||||
Russell | |||||
Exchange | |||||
Traded Funds | |||||
Trust | |||||
Daniel P. Connealy, | Trustee since 2003 | Appointed until | • Retired | 51 | Until October |
Born June 6, 1946 | successor is | • June 2004 to June 2014, Senior | 2015, Trustee, | ||
1301 Second Avenue, | duly elected and | Vice President and Chief | Russell Exchange | ||
18th Floor, Seattle, WA | qualified | Financial Officer, Waddell | Traded Funds | ||
98101 | & Reed Financial, Inc. | Trust | |||
(investment company) | |||||
Katherine W. Krysty, | Trustee since 2014 | Appointed until | • Retired | 51 | Until October |
Born December 3, 1951 | successor is | • January 2011 through March | 2015, Trustee, | ||
1301 Second Avenue | duly elected and | 2013, President Emerita, Laird | Russell Exchange | ||
18th Floor, Seattle, WA | qualified | Norton Wealth Management | Traded Funds | ||
98101 | (investment company) | Trust |
Disclosure of Information about Fund Trustees and Officers 809
Russell Investment Company
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Position(s) Held | Term | Principal Occupation(s) | No. of | Other | ||
Name, | With Fund and | of | During the | Portfolios | Directorships | |
Age, | Length of | Office * | Past 5 Years | in Russell | Held by Trustee | |
Address | Time Served | Investments | During the | |||
Fund | Past 5 Years | |||||
Complex | ||||||
Overseen | ||||||
by Trustee | ||||||
INDEPENDENT TRUSTEES (continued) | ||||||
Raymond P. Tennison, | Trustee since 2000 | Appointed until | • Retired | 51 | Until October | |
Jr., Born December 21, | Chairman of | successor is | • From January 2008 to December | 2015, Trustee, | ||
1955 | the Nominating | duly elected and | 2011, Vice Chairman of the | Russell Exchange | ||
1301 Second Avenue | and Governance | qualified | Board, Simpson Investment | Traded Funds | ||
18th Floor, Seattle, WA | Committee since | Appointed until | Company (paper and forest | Trust | ||
98101 | 2007 | successor is | products) | |||
duly elected and | ||||||
qualified | ||||||
Jack R. Thompson, | Trustee since 2005 | Appointed until | • Retired | 51 | • Until October | |
Born March 21, 1949 | Chairman of | successor is | 2015, Trustee, | |||
1301 Second Avenue, | the Investment | duly elected and | Russell | |||
18th Floor, Seattle, WA | Committee since | qualified | Exchange | |||
98101 | 2015 | Appointed until | Traded Funds | |||
successor is | Trust | |||||
duly elected and | ||||||
qualified | ||||||
* | Each Trustee is subject to mandatory retirement at age 75. | |||||
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other | |
Age, | With Fund and | of | During the | Portfolios | Directorships | |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee | |
Time Served | Investments | During the | ||||
Fund | Past 5 Years | |||||
Complex | ||||||
Overseen | ||||||
by Trustee | ||||||
TRUSTEE EMERITUS | ||||||
George F. Russell, Jr., | Trustee Emeritus and | Until resignation | • Director Emeritus, RIM | 51 | None | |
Born July 3, 1932 | Chairman Emeritus | or removal | ||||
1301 Second Avenue, | since 1999 | |||||
18th Floor, Seattle, WA | ||||||
98101 | ||||||
Name, | Positions(s) Held | Term | Principal Occupation(s) | |||
Age, | With Fund and | of | During the | |||
Address | Length of | Office | Past 5 Years | |||
Time Served | ||||||
OFFICERS | ||||||
Cheryl Wichers, | Chief Compliance | Until removed | • Chief Compliance Officer, RIC and RIF | |||
Born December 16, | Officer since 2005 | by Independent | • Chief Compliance Officer, RIFUS | |||
1966 | Trustees | • 2011 to 2016 Chief Compliance Officer, U.S. One, LLC | ||||
1301 Second Avenue | • 2005 to 2011 Chief Compliance Officer, RIM | |||||
18th Floor, Seattle, WA | ||||||
98101 |
810 Disclosure of Information about Fund Trustees and Officers
Russell Investment Company
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Name, | Positions(s) Held | Term | Principal Occupation(s) |
Age, | With Fund and | of | During the |
Address | Length of | Office | Past 5 Years |
Time Served | |||
Mark E. Swanson, | President and Chief | Until successor | • Global Head of Fund Services, Russell Investments |
Born November 26, | Executive Officer | is chosen and | • President, CEO, Treasurer, Chief Accounting Officer and CFO, RIC |
1963 | since 2016 | qualified by | and RIF |
1301 Second Avenue | Treasurer, Chief | Trustees | • Director, and President, RIFUS |
18th Floor, Seattle, WA | Accounting Officer | • Director, RIM, Russell Investments Trust Company (“RITC”) and | |
98101 | and Chief Financial | Russell Investments Financial Services, LLC (“RIFIS”) | |
Officer since 1998 | • October 2011 to December 2013, Head of North America Operations | ||
Russell Investments | |||
• May 2009 to October 2011, Global Head of Fund Operations, Russell | |||
Investments | |||
Jeffrey T. Hussey, | Chief Investment | Until removed by | • Global Chief Investment Officer, Russell Investments |
Born May 2, 1969 | Officer since 2013 | Trustees | • Chief Investment Officer, RIC and RIF |
1301 Second Avenue, | • Chairman of the Board and President, RIM | ||
18th Floor, Seattle WA | • Director, RITC, Russell Investments Implementation Services, LLC | ||
98101 | and Russell Investments Delaware, LLC | ||
• Board of Managers, Russell Investments Funds Management, LLC | |||
• 2003 to 2013 Chief Investment Officer, Fixed Income, Russell | |||
Investments | |||
Mary Beth R. Albaneze, | Secretary since 2010 | Until successor | • Associate General Counsel, Russell Investments |
Born April 25, 1969 | is chosen and | • Secretary, RIM, RIFUS and RIFIS | |
1301 Second Avenue, | qualified by | • Secretary and Chief Legal Officer, RIC and RIF | |
18th Floor, Seattle, WA | Trustees | • Assistant Secretary, Russell Investments Insurance Agency, LLC | |
98101 | (“RIIA”)(insurance agency) and U.S. One, LLC |
Disclosure of Information about Fund Trustees and Officers 811
Russell Investment Company
Adviser, Money Managers and Service Providers — April 30, 2017 (Unaudited)
Independent Trustees | U.S. Dynamic Equity Fund |
Thaddas L. Alston | AJO, LP, Philadelphia, PA |
Kristianne Blake | Jacobs Levy Equity Management, Inc., Florham Park, NJ |
Cheryl Burgermeister | Pzena Investment Management, LLC, New York, NY |
Daniel P. Connealy | Suffolk Capital Management, LLC, New York, NY |
Katherine W. Krysty | U.S. Strategic Equity Fund |
Raymond P. Tennison, Jr. | AJO, LP, Philadelphia, PA |
Jack R. Thompson | Barrow, Hanley, Mewhinney & Strauss, LLC, Dallas, TX |
Trustee Emeritus | Brandywine Global Investment Management, LLC, |
George F. Russell, Jr. | Philadelphia, PA |
Officers | Jacobs Levy Equity Management, Inc., Florham Park, NJ |
Mark E. Swanson, President, CEO, Treasurer, Chief | Suffolk Capital Management, LLC, New York, NY |
Accounting Officer & CFO | William Blair Investment Management, LLC, Chicago, IL |
Cheryl Wichers, Chief Compliance Officer | U.S. Large Cap Equity Fund |
Jeffrey T. Hussey, Chief Investment Officer | Ceredex Value Advisors LLC, Orlando, FL |
Mary Beth R. Albaneze, Secretary | Jacobs Levy Equity Management Inc., Florham Park, NJ |
Adviser | Sustainable Growth Advisers, LP, Stamford, CT |
Russell Investment Management, LLC | TCW Asset Management Company, Los Angeles, CA |
1301 Second Avenue | William Blair Investment Management, LLC, Chicago, IL |
Seattle, WA 98101 | U.S. Mid Cap Equity Fund |
Administrator and Transfer and Dividend Disbursing | Ceredex Value Advisors LLC, Orlando, FL |
Elk Creek Partners, LLC, Denver, CO | |
Agent | Jacobs Levy Equity Management Inc., Florham Park, NJ |
Russell Investments Fund Services, LLC | |
1301 Second Avenue | U.S. Small Cap Equity Fund |
Seattle, WA 98101 | Ancora Advisors LLC, Mayfield Heights, OH |
Cardinal Capital Management, L.L.C., Greenwich, CT | |
Custodian | Copeland Capital Management, LLC, Conshohocken, PA |
State Street Bank and Trust Company | DePrince, Race & Zollo, Inc., Winter Park, FL |
1 Heritage Drive | Falcon Point Capital, LLC, San Francisco, CA |
North Quincy, MA 021171 | Jacobs Levy Equity Management Inc., Florham Park, NJ |
Office of Shareholder Inquiries | PENN Capital Management Company, Inc., Philadelphia, PA |
1301 Second Avenue | Robeco Investment Management, Inc., New York, NY |
Seattle, WA 98101 | Timpani Capital Management LLC, Milwaukee, WI |
(800) 787-7354 | International Developed Markets Fund |
Legal Counsel | Barrow, Hanley, Mewhinney & Strauss, LLC, Dallas, TX |
Dechert LLP | GQG Partners, LLC, Fort Lauderdale, FL |
One International Place, 40th Floor | Numeric Investors LLC, Boston, MA |
100 Oliver Street | Pzena Investment Management, LLC, New York, NY |
Boston, MA 02110 | Wellington Management Company, LLP, Boston, MA |
Distributor | Global Equity Fund |
Russell Investments Financial Services, LLC | GQC Partners, LLC, Fort Lauderdale, FL |
1301 Second Avenue | Harris Associates L.P., Chicago, IL |
Seattle, WA 98101 | Polaris Capital Management, LLC, Boston, MA |
Independent Registered Public Accounting Firm | Sanders Capital, LLC, New York, NY |
PricewaterhouseCoopers LLP | Wellington Management Company, LLP, Boston, MA |
1420 5th Avenue, Suite 2800 | Emerging Markets Fund |
Seattle, WA 98101 | AllianceBernstein L.P., New York, NY |
Money Managers | Consillium Investment Management, LLC, Fort Lauderdale, |
U.S. Core Equity Fund | FL |
Delaware Management Company, a Series of Delaware | |
Barrow, Hanley, Mewhinney & Strauss, LLC, Dallas, TX | Management Business Trust, Philadelphia, PA |
Brandywine Global Investment Management, LLC, | Harding Loevner LP, Bridgewater, NJ |
Philadelphia, PA | Numeric Investors LLC, Boston, MA |
Jacobs Levy Equity Management, Inc., Florham Park, NJ | Oaktree Capital Management, L.P., Los Angeles, CA |
Suffolk Capital Management, LLC, New York, NY | Westwood Management Corporation, Dallas, TX |
Sustainable Growth Advisers, LP, Stamford, CT | |
U.S. Defensive Equity Fund | Tax-Managed Barrow, Hanley, U. Mewhinney S. Large & Cap Strauss, Fund LLC, Dallas, TX |
Coho Partners, Ltd., Berwyn, PA | J.P. Morgan Investment Management Inc., New York, NY |
J.P. Morgan Investment Management Inc., New York, NY | MarVista Investment Partners LLC, Los Angeles, CA |
Jacobs Levy Equity Management, Inc., Florham Park, NJ | Pzena Investment Management, LLC, New York, NY |
Mar Vista Investment Partners, Los Angeles, CA | Sustainable Growth Advisers, LP, Stamford, CT |
812 Adviser, Money Managers and Service Providers
Russell Investment Company
Adviser, Money Managers and Service Providers — April 30, 2017 (Unaudited)
Tax-Managed U.S. Mid & Small Cap Fund | Tax-Exempt High Yield Bond Fund |
Chartwell Investment Partners, Berwyn, PA | Goldman Sachs Asset Management, New York, NY |
Luther King Capital Management Corporation, Fort Worth, | MacKay Shields LLC, New York, NY |
TX | Tax-Exempt Bond Fund |
Netols Asset Management Inc., Mequon, WI | AllianceBernstein L.P., New York, NY |
Snow Capital Management, L.P., Sewickley, PA | MacKay Shields LLC, New York, NY |
Summit Creek Advisors LLC, Minneapolis, MN | Commodity Strategies Fund |
Tax-Managed International Equity Fund | CoreCommodity Management, LLC, Stamford, CT |
AllianceBernstein L.P., New York, NY | Credit Suisse Asset Management, LLC, New York, NY |
Delaware Investment Fund Advisers, a Series of Delaware | Mellon Capital Management Corp., San Francisco, CA |
Management Business Trust, Philadelphia, PA | |
Fiera Capital Inc., New York, NY | Global Infrastructure Fund |
Janus Capital Management LLC, Denver, CO | Cohen & Steers Capital Management, Inc., New York, NY |
Pzena Investment Management, LLC, New York, NY | Colonial First State Asset Management (Australia) Limited, |
RWC Asset Advisors (US) LLC, London, United Kingdom | Sydney, Australia |
Maple-Brown Abbott Limited, Sydney, Australia | |
Global Opportunistic Credit Fund | Nuveen Asset Management, LLC, Chicago, IL |
Axiom Alternative Investments SARL, Paris, France | |
DDJ Capital Management LLC, Waltham, MA | Global Real Estate Securities Fund |
Dupont Capital Management Corporation, Wilmington, DE | Cohen & Steers Capital Management, Inc., New York, NY |
Lazard Asset Management LLC, New York, NY | Morgan Stanley Investment Management Inc., New York, NY |
Oaktree Capital Management, L.P., Los Angeles, CA | RREEF America L.L.C., Chicago, IL |
THL Credit Advisors, LLC, Boston, MA | Multi-Strategy Income Fund |
Unconstrained Total Return Fund | Cohen & Steers Capital Management, Inc., New York, NY |
H2O Asset Management LLP, London, United Kingdom | GLG LLC, New York, NY |
Post Advisory Group, LLC, Santa Monica, CA | DDJ Capital Management LLC, Waltham, MA |
Putnam Investment Management, LLC, Boston, MA | Janus Capital Management LLC, Denver, CO |
THL Credit Advisors, LLC, Boston, MA | JO Hambro Capital Management, Ltd., London, UK |
Kopernik Global Investors, LLC, Tampa, FL | |
Strategic Bond Fund | Putnam Investment Management, LLC, Boston, MA |
Colchester Global Investors Limited, London, United | THL Credit Advisors, LLC, Boston, MA |
Kingdom | T. Rowe Price Associates, Inc., Baltimore, MD |
Logan Circle Partners, L.P., Philadelphia, PA | |
Pareto Investment Management Limited, London, United | Multi-Asset Growth Strategy Fund |
Kingdom | AllianceBernstein L.P., New York, NY |
Schroder Investment Management North America Inc., New | Axiom International Investors, LLC, Greenwich, CT |
York, NY | Cohen & Steers Capital Management, Inc., New York, NY |
Scout Investments, Inc, Kansas City, MO | Colonial First State Asset Management (Australia) Limited, |
Western Asset Management Company, Pasadena, CA and | Sydney, Australia |
Western Asset Management Company Limited, London, | GLG LLC, New York, NY |
United Kingdom | Hermes Investment Management Limited, London, UK |
Kopernik Global Investors, LLC, Tampa, FL | |
Investment Grade Bond Fund | Levin Capital Strategies, New York, NY |
Logan Circle Partners, L.P., Philadelphia, PA | OFI Global Institutional, Inc., New York, NY |
Loomis, Sayles & Company, L.P., Boston, MA | Polaris Capital Management, LLC, Boston, MA |
Neuberger Berman Fixed Income LLC, Chicago, IL | Putnam Investment Management, LLC, Boston, MA |
Schroder Investment Management North America Inc., New | RiverPark Advisors, LLC, New York, NY |
York, NY | Sustainable Growth Advisers, LP, Stamford, CT |
Short Duration Bond Fund | THL Credit Advisors LLC, Boston, MA |
Logan Circle Partners, L.P., Philadelphia, PA | T.Rowe Price Associates, Inc., Baltimore, MD |
Scout Investments, Inc, Kansas City, MO | Wellington Management Company LLP, Boston, MA |
THL Credit Advisors, LLC, Boston, MA | |
Note: Select U.S. Equity, Select International Equity and Strategic Call Over- | |
writing Funds are directly managed by RIM. |
This report is prepared from the books and records of the Funds and is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless accompanied or preceded by an effective Prospectus. Nothing herein contained is
to be considered an offer of sale or a solicitation of an offer to buy shares of Russell Investment Company. Such offering is made only by
Prospectus, which includes details as to offering price and other material information.
Adviser, Money Managers and Service Providers 813
Russell Investment
Company
Russell Investment Company is a
series investment company with
42 different investment portfolios
referred to as Funds. These
financial statements report on 14
of these Funds.
Russell Investment Company
LifePoints® Funds
Semi-annual Report
April 30, 2017 (Unaudited)
Table of Contents
Page | |
Conservative Strategy Fund | 3 |
Moderate Strategy Fund | 21 |
Balanced Strategy Fund | 41 |
Growth Strategy Fund | 61 |
Equity Growth Strategy Fund | 81 |
2020 Strategy Fund | 101 |
2025 Strategy Fund | 111 |
2030 Strategy Fund | 121 |
2035 Strategy Fund | 131 |
2040 Strategy Fund | 141 |
2045 Strategy Fund | 151 |
2050 Strategy Fund | 161 |
2055 Strategy Fund | 171 |
In Retirement Fund | 181 |
Notes to Schedule of Investments | 193 |
Notes to Financial Highlights | 194 |
Notes to Financial Statements | 195 |
Shareholder Requests for Additional Information | 212 |
Disclosure of Information about Fund Trustees and Officers | 213 |
Adviser and Service Providers | 218 |
Russell Investment Company - LifePoints® Funds.
Copyright © Russell Investments 2017. All rights reserved.
Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with
minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.
Fund objectives, risks, charges and expenses should be carefully considered before in-
vesting. A prospectus containing this and other important information must precede or
accompany this material. Please read the prospectus carefully before investing.
Securities distributed through Russell Investments Financial Services, LLC, member FINRA, part of
Russell Investments.
Performance quoted represents past performance and does not guarantee future results. The investment return
and principal value of an investment will fluctuate so that shares, when redeemed, 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 data may be obtained by visiting https://russellinvestments.com/us/
funds/performance-prices.
Russell Investment Company
Conservative Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution and/or | Performance (5% | |||||
service fees; and other Fund expenses. The example is intended | Actual | return before | ||||
to help you understand your ongoing costs (in dollars) of investing | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
in the Fund and to compare these costs with the ongoing costs of | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
investing in other mutual funds. The Example is based on an | Ending Account Value | |||||
investment of $1,000 invested at the beginning of the period and | April 30, 2017 | $ | 1,024.50 | $ | 1,022.07 | |
held for the entire period indicated, which for this Fund is from | Expenses Paid During Period* | $ | 2.76 | $ | 2.76 | |
November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.55% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,019.80 | $ | 1,018.35 | |
Expenses Paid During Period* | $ | 6.51 | $ | 6.51 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.30% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypo account values and expenses may not be | Performance (5% | |||||
used to estimate the actual ending account balance or expenses | Actual | return before | ||||
you paid for the period. You may use this info to compare the | Class E | Performance | expenses) | |||
ongoing costs of investing in the Fund and other funds. To do so, | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
compare this 5% hypothetical example with the 5% hypothetical | Ending Account Value | |||||
examples that appear in the shareholder reports of other funds. | April 30, 2017 | $ | 1,023.30 | $ | 1,022.07 | |
Expenses Paid During Period* | $ | 2.76 | $ | 2.76 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.55% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Conservative Strategy Fund 3
Russell Investment Company
Conservative Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R1 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,025.30 | $ | 1,023.95 | ||
Expenses Paid During Period* | $ | 0.85 | $ | 0.85 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.17% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R4 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,024.20 | $ | 1,022.71 | ||
Expenses Paid During Period* | $ | 2.11 | $ | 2.11 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.42% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R5 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,023.60 | $ | 1,021.47 | ||
Expenses Paid During Period* | $ | 3.36 | $ | 3.36 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.67% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,024.60 | $ | 1,023.31 | ||
Expenses Paid During Period* | $ | 1.51 | $ | 1.51 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.30% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
4 Conservative Strategy Fund
Russell Investment Company
Conservative Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 98.2% | ||||
Alternative - 5.7% | ||||
Commodity Strategies Fund Class Y | 1,783,892 | 9,740 | ||
Global Infrastructure Fund Class Y | 646,508 | 7,687 | ||
Global Real Estate Securities Fund Class Y | 16,481 | 556 | ||
17,983 | ||||
Domestic Equities - 3.4% | ||||
Select U.S. Equity Fund Class Y | 518,399 | 6,397 | ||
U.S. Defensive Equity Fund Class Y | 5,529 | 281 | ||
U.S. Dynamic Equity Fund Class Y | 364,841 | 3,991 | ||
10,669 | ||||
Fixed Income - 58.7% | ||||
Global Opportunistic Credit Fund Class Y | 959,347 | 9,421 | ||
Investment Grade Bond Fund Class Y | 1,296,269 | 27,494 | ||
Short Duration Bond Fund Class Y | 3,814,018 | 73,115 | ||
Strategic Bond Fund Class Y | 5,326,963 | 56,359 | ||
Unconstrained Total Return Fund Class Y | 1,988,027 | 19,801 | ||
186,190 | ||||
International Equities - 3.9% | ||||
Emerging Markets Fund Class Y | 342,592 | 6,256 | ||
Select International Equity Fund Class Y | 674,254 | 6,270 | ||
12,526 | ||||
Multi-Asset - 26.5% | ||||
Multi-Strategy Income Fund Class Y | 8,388,788 | 83,888 | ||
Total Investments in Affiliated Funds | ||||
(cost $300,036) | 311,256 | |||
Short-Term Investments - 1.3% | ||||
U.S. Cash Management Fund | 4,276,201 | (8) | 4,277 | |
Total Short-Term Investments | ||||
(cost $4,277) | 4,277 | |||
Total Investments 99.5% | ||||
(identified cost $304,313) | 315,533 | |||
Other Assets and Liabilities, Net - 0.5% | 1,535 | |||
Net Assets - 100.0% | 317,068 |
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 5
Russell Investment Company
Conservative Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Amsterdam Index Futures | 8 | EUR | 827 | 05/17 | 20 | ||
CAC40 Euro Index Futures | 42 | EUR | 2,190 | 05/17 | 124 | ||
DAX Index Futures | 7 | EUR | 2,182 | 06/17 | 85 | ||
EURO STOXX 50 Index Futures | 39 | EUR | 1,368 | 06/17 | 75 | ||
FTSE/MIB Index Futures | 5 | EUR | 507 | 06/17 | 33 | ||
IBEX 35 Index Futures | 7 | EUR | 751 | 05/17 | 39 | ||
MSCI Emerging Markets Mini Index Futures | 17 | USD | 833 | 06/17 | 46 | ||
OMXS30 Index Futures | 31 | SEK | 5,016 | 05/17 | 25 | ||
S&P 500 E-Mini Index Futures | 21 | USD | 2,500 | 06/17 | 16 | ||
Short Positions | |||||||
FTSE 100 Index Futures | 7 | GBP | 502 | 06/17 | 12 | ||
Hang Seng Index Futures | 1 | HKD | 1,228 | 05/17 | (1 | ) | |
MSCI Singapore Index Futures | 2 | SGD | 70 | 05/17 | (1 | ) | |
Russell 1000 Mini Index Futures | 8 | USD | 528 | 06/17 | (4 | ) | |
Russell 2000 Mini Index Futures | 10 | USD | 699 | 06/17 | (17 | ) | |
S&P 500 E-Mini Index Futures | 76 | USD | 9,046 | 06/17 | (71 | ) | |
S&P Mid 400 E-Mini Index Futures | 5 | USD | 865 | 06/17 | (14 | ) | |
S&P/TSX 60 Index Futures | 13 | CAD | 2,384 | 06/17 | (9 | ) | |
SPI 200 Index Futures | 3 | AUD | 443 | 06/17 | (10 | ) | |
TOPIX Index Futures | 6 | JPY | 91,801 | 06/17 | 6 | ||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 354 |
Foreign Currency Exchange Contracts | |||||||||
Amounts in thousands | |||||||||
Unrealized | |||||||||
Appreciation | |||||||||
Amount | Amount | (Depreciation) | |||||||
Counterparty | Sold | Bought | Settlement Date | $ | |||||
Bank of Montreal | AUD | 130 | USD | 99 | 06/21/17 | 2 | |||
Bank of Montreal | EUR | 477 | USD | 504 | 06/21/17 | (15 | ) | ||
Bank of Montreal | GBP | 163 | USD | 201 | 06/21/17 | (11 | ) | ||
Bank of Montreal | HKD | 387 | USD | 50 | 06/21/17 | — | |||
Bank of Montreal | JPY | 31,320 | USD | 276 | 06/21/17 | (6 | ) | ||
Bank of Montreal | SEK | 283 | USD | 31 | 06/21/17 | (1 | ) | ||
Commonwealth Bank of Australia | AUD | 130 | USD | 99 | 06/21/17 | 2 | |||
Commonwealth Bank of Australia | EUR | 477 | USD | 505 | 06/21/17 | (16 | ) | ||
Commonwealth Bank of Australia | GBP | 163 | USD | 201 | 06/21/17 | (11 | ) | ||
Commonwealth Bank of Australia | HKD | 387 | USD | 50 | 06/21/17 | — | |||
Commonwealth Bank of Australia | JPY | 31,320 | USD | 276 | 06/21/17 | (5 | ) | ||
Commonwealth Bank of Australia | SEK | 283 | USD | 31 | 06/21/17 | (1 | ) | ||
Royal Bank of Canada | AUD | 130 | USD | 99 | 06/21/17 | 1 | |||
Royal Bank of Canada | EUR | 477 | USD | 503 | 06/21/17 | (17 | ) | ||
Royal Bank of Canada | GBP | 163 | USD | 201 | 06/21/17 | (11 | ) | ||
Royal Bank of Canada | HKD | 387 | USD | 50 | 06/21/17 | — | |||
Royal Bank of Canada | JPY | 31,320 | USD | 275 | 06/21/17 | (6 | ) | ||
Royal Bank of Canada | SEK | 283 | USD | 31 | 06/21/17 | (1 | ) | ||
State Street | USD | 5 | AUD | 7 | 05/15/17 | — | |||
State Street | USD | 611 | AUD | 818 | 05/15/17 | 2 | |||
State Street | USD | 39 | CAD | 52 | 05/15/17 | (1 | ) | ||
State Street | USD | 788 | CAD | 1,075 | 05/15/17 | (1 | ) | ||
State Street | USD | 9 | CHF | 9 | 05/15/17 | — |
See accompanying notes which are an integral part of the financial statements.
6 Conservative Strategy Fund
Russell Investment Company
Conservative Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
State Street | USD | 737 | CHF | 730 | 05/15/17 | (3 | ) |
State Street | USD | 2,859 | EUR | 2,616 | 05/15/17 | (7 | ) |
State Street | USD | 46 | GBP | 37 | 05/15/17 | 2 | |
State Street | USD | 1,495 | GBP | 1,156 | 05/15/17 | 3 | |
State Street | USD | 6 | HKD | 49 | 05/15/17 | — | |
State Street | USD | 291 | HKD | 2,265 | 05/15/17 | — | |
State Street | USD | 87 | JPY | 9,619 | 05/15/17 | — | |
State Street | USD | 1,781 | JPY | 198,580 | 05/15/17 | 1 | |
State Street | USD | 10 | SEK | 92 | 05/15/17 | — | |
State Street | USD | 302 | SEK | 2,668 | 05/15/17 | (1 | ) |
State Street | USD | 3 | SGD | 4 | 05/15/17 | — | |
State Street | USD | 105 | SGD | 146 | 05/15/17 | — | |
State Street | AUD | 825 | USD | 631 | 05/15/17 | 13 | |
State Street | AUD | 818 | USD | 610 | 06/07/17 | (2 | ) |
State Street | CAD | 1,127 | USD | 845 | 05/15/17 | 19 | |
State Street | CAD | 1,075 | USD | 789 | 06/07/17 | 1 | |
State Street | CHF | 739 | USD | 740 | 05/15/17 | (3 | ) |
State Street | CHF | 730 | USD | 738 | 06/07/17 | 3 | |
State Street | EUR | 19 | USD | 20 | 05/15/17 | — | |
State Street | EUR | 2,597 | USD | 2,781 | 05/15/17 | (50 | ) |
State Street | EUR | 2,616 | USD | 2,862 | 06/07/17 | 7 | |
State Street | GBP | 1,193 | USD | 1,492 | 05/15/17 | (53 | ) |
State Street | GBP | 1,156 | USD | 1,496 | 06/07/17 | (3 | ) |
State Street | HKD | 2,314 | USD | 298 | 05/15/17 | — | |
State Street | HKD | 2,265 | USD | 291 | 06/07/17 | — | |
State Street | JPY | 208,199 | USD | 1,865 | 05/15/17 | (4 | ) |
State Street | JPY | 198,580 | USD | 1,783 | 06/07/17 | (1 | ) |
State Street | SEK | 2,760 | USD | 310 | 05/15/17 | (2 | ) |
State Street | SEK | 2,668 | USD | 303 | 06/07/17 | 1 | |
State Street | SGD | 150 | USD | 107 | 05/15/17 | — | |
State Street | SGD | 146 | USD | 105 | 06/07/17 | — | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (175 | ) |
Presentation of Portfolio Holdings | ||||||||||||||
Amounts in thousands | ||||||||||||||
Fair Value | ||||||||||||||
Practical | ||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||
Investments in Affiliated Funds | $ | 311,256 | $ | — | $ | — | $ | — | $ | 311,256 | 98.2 | |||
Short-Term Investments | — | — | — | 4,277 | 4,277 | 1.3 | ||||||||
Total Investments | 311,256 | — | — | 4,277 | 315,533 | 99.5 | ||||||||
Other Assets and Liabilities, Net | 0.5 | |||||||||||||
100.0 | ||||||||||||||
Other Financial Instruments | ||||||||||||||
Assets | ||||||||||||||
Futures Contracts | 481 | — | — | — | 481 | 0.2 | ||||||||
Foreign Currency Exchange Contracts | — | 57 | — | — | 57 | — * |
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 7
Russell Investment Company
Conservative Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (127 | ) | — | — | — | (127 | ) | (—)* | ||||||||||
Foreign Currency Exchange Contracts | — | (232 | ) | — | — | (232 | ) | (0.1 | ) | |||||||||
Total Other Financial Instruments** | $ | 354 | $ | (175 | ) | $ | — | $ | — | $ | 179 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
8 Conservative Strategy Fund
Russell Investment Company
Conservative Strategy Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | |||||||
Unrealized appreciation on foreign currency exchange contracts | $ | — | $ | 57 | |||
Variation margin on futures contracts* | 481 | — | |||||
Total | $ | 481 | $ | 57 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||
Variation margin on futures contracts* | $ | 127 | $ | — | |||
Unrealized depreciation on foreign currency exchange contracts | — | 232 | |||||
Total | $ | 127 | $ | 232 | |||
Foreign | |||||||
Equity | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | |||||||
Futures contracts | $ | (314 | ) | $ | — | ||
Foreign currency-related transactions** | — | 762 | |||||
Total | $ | (314 | ) | $ | 762 | ||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | |||||||
Futures contracts | $ | 363 | $ | — | |||
Foreign currency-related transactions*** | — | (574 | ) | ||||
Total | $ | 363 | $ | (574 | ) |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
*** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 9
Russell Investment Company
Conservative Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | $ | 57 | $ | — $ | 57 | |||
Futures Contracts | Variation margin on futures contracts | 64 | — | 64 | |||||
Total Financial and Derivative Assets | 121 | — | 121 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (64 | ) | — | (64 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 57 | $ | — $ | 57 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of Montreal | $ | 2 | $ | 2 | $ | — | $ — | ||
Commonwealth Bank of Australia | 2 | 2 | — | — | |||||
Royal Bank of Canada | 1 | 1 | — | — | |||||
State Street | 52 | 52 | — | — | |||||
Total | $ | 57 | $ | 57 | $ | — | $ — |
See accompanying notes which are an integral part of the financial statements.
10 Conservative Strategy Fund
Russell Investment Company
Conservative Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 15 | $ | — $ | 15 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 232 | — | 232 | |||||
Total Financial and Derivative Liabilities | 247 | — | 247 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (15 | ) | — | (15 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 232 | $ | — $ | 232 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of Montreal | $ | 33 | $ | 2 | $ | — | $ 31 | ||
Commonwealth Bank of Australia | 33 | 2 | — | 31 | |||||
Royal Bank of Canada | 35 | 1 | — | 34 | |||||
State Street | 131 | 52 | — | 79 | |||||
Total | $ | 232 | $ | 57 | $ | — | $ 175 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 11
Russell Investment Company
Conservative Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 304,313 |
Investments, at fair value(>) | 315,533 | |
Cash (restricted)(a) | 1,700 | |
Unrealized appreciation on foreign currency exchange contracts | 57 | |
Receivables: | ||
Dividends from affiliated funds | 3 | |
Fund shares sold | 864 | |
Variation margin on futures contracts | 64 | |
Prepaid expenses | 4 | |
Total assets | 318,225 | |
Liabilities | ||
Payables: | ||
Investments purchased | 308 | |
Fund shares redeemed | 302 | |
Accrued fees to affiliates | 212 | |
Other accrued expenses | 88 | |
Variation margin on futures contracts | 15 | |
Unrealized depreciation on foreign currency exchange contracts | 232 | |
Total liabilities | 1,157 | |
Net Assets | $ | 317,068 |
See accompanying notes which are an integral part of the financial statements.
12 Conservative Strategy Fund
Russell Investment Company
Conservative Strategy Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (369 | ) |
Accumulated net realized gain (loss) | 297 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 11,220 | ||
Futures contracts | 354 | ||
Foreign currency-related transactions | (175 | ) | |
Shares of beneficial interest | 326 | ||
Additional paid-in capital | 305,415 | ||
Net Assets | $ | 317,068 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 9.77 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 10.37 | |
Class A — Net assets | $ | 83,224,321 | |
Class A — Shares outstanding ($.01 par value) | 8,522,521 | ||
Net asset value per share: Class C(#) | $ | 9.66 | |
Class C — Net assets | $ | 143,365,236 | |
Class C — Shares outstanding ($.01 par value) | 14,836,825 | ||
Net asset value per share: Class E(#) | $ | 9.81 | |
Class E — Net assets | $ | 12,051,039 | |
Class E — Shares outstanding ($.01 par value) | 1,228,042 | ||
Net asset value per share: Class R1(#) | $ | 9.83 | |
Class R1 — Net assets | $ | 10,450,706 | |
Class R1 — Shares outstanding ($.01 par value) | 1,062,755 | ||
Net asset value per share: Class R4(#) | $ | 9.78 | |
Class R4 — Net assets | $ | 15,166,295 | |
Class R4 — Shares outstanding ($.01 par value) | 1,550,772 | ||
Net asset value per share: Class R5(#) | $ | 9.87 | |
Class R5 — Net assets | $ | 12,958,198 | |
Class R5 — Shares outstanding ($.01 par value) | 1,313,479 | ||
Net asset value per share: Class S(#) | $ | 9.84 | |
Class S — Net assets | $ | 39,852,572 | |
Class S — Shares outstanding ($.01 par value) | 4,048,375 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 315,533 | |
(a) Cash Collateral for Futures | $ | 1,700 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 13
Russell Investment Company
Conservative Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 6,983 | |
Expenses | |||
Advisory fees | 335 | ||
Administrative fees | 71 | ||
Custodian fees | 26 | ||
Distribution fees - Class A | 106 | ||
Distribution fees - Class C | 562 | ||
Distribution fees - Class R5 | 17 | ||
Transfer agent fees - Class A | 85 | ||
Transfer agent fees - Class C | 150 | ||
Transfer agent fees - Class E | 13 | ||
Transfer agent fees - Class R1 | 18 | ||
Transfer agent fees - Class R4 | 15 | ||
Transfer agent fees - Class R5 | 13 | ||
Transfer agent fees - Class S | 41 | ||
Professional fees | 20 | ||
Registration fees | 51 | ||
Shareholder servicing fees - Class C | 187 | ||
Shareholder servicing fees - Class E | 16 | ||
Shareholder servicing fees - Class R4 | 19 | ||
Shareholder servicing fees - Class R5 | 17 | ||
Trustees’ fees | 6 | ||
Printing fees | 26 | ||
Miscellaneous | 6 | ||
Expenses before reductions | 1,800 | ||
Expense reductions | (405 | ) | |
Net expenses | 1,395 | ||
Net investment income (loss) | 5,588 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 1,826 | ||
Futures contracts | (314 | ) | |
Foreign currency-related transactions | 762 | ||
Capital gain distributions from affiliated funds | 962 | ||
Net realized gain (loss) | 3,236 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | (1,475 | ) | |
Futures contracts | 363 | ||
Foreign currency-related transactions | (574 | ) | |
Net change in unrealized appreciation (depreciation) | (1,686 | ) | |
Net realized and unrealized gain (loss) | 1,550 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 7,138 |
See accompanying notes which are an integral part of the financial statements.
14 Conservative Strategy Fund
Russell Investment Company
Conservative Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 5,588 | $ | 8,323 | ||
Net realized gain (loss) | 3,236 | 6,741 | ||||
Net change in unrealized appreciation (depreciation) | (1,686 | ) | (2,261 | ) | ||
Net increase (decrease) in net assets from operations | 7,138 | 12,803 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (1,612 | ) | (2,378 | ) | ||
Class C | (2,329 | ) | (2,959 | ) | ||
Class E | (246 | ) | (370 | ) | ||
Class R1 | (390 | ) | (674 | ) | ||
Class R4 | (301 | ) | (427 | ) | ||
Class R5 | (249 | ) | (382 | ) | ||
Class S | (829 | ) | (1,283 | ) | ||
From net realized gain | ||||||
Class A | (1,725 | ) | (8,444 | ) | ||
Class C | (3,121 | ) | (14,648 | ) | ||
Class E | (265 | ) | (1,288 | ) | ||
Class R1 | (375 | ) | (2,205 | ) | ||
Class R4 | (311 | ) | (1,394 | ) | ||
Class R5 | (276 | ) | (1,462 | ) | ||
Class S | (834 | ) | (4,306 | ) | ||
Net decrease in net assets from distributions | (12,863 | ) | (42,220 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (34,711 | ) | (47,792 | ) | ||
Total Net Increase (Decrease) in Net Assets | (40,436 | ) | (77,209 | ) | ||
Net Assets | ||||||
Beginning of period | 357,504 | 434,713 | ||||
End of period | $ | 317,068 | $ | 357,504 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (369 | ) | $ | (1 | ) |
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 15
Russell Investment Company
Conservative Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 443 | $ | 4,286 | 1,253 | $ | 12,435 | ||||||
Proceeds from reinvestment of distributions | 346 | 3,295 | 1,117 | 10,673 | ||||||||
Payments for shares redeemed | (1,227 | ) | (11,893 | ) | (3,417 | ) | (33,410 | ) | ||||
Net increase (decrease) | (438 | ) | (4,312 | ) | (1,047 | ) | (10,302 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 893 | 8,581 | 2,087 | 20,289 | ||||||||
Proceeds from reinvestment of distributions | 576 | 5,427 | 1,855 | 17,525 | ||||||||
Payments for shares redeemed | (3,065 | ) | (29,424 | ) | (5,325 | ) | (51,945 | ) | ||||
Net increase (decrease) | (1,596 | ) | (15,416 | ) | (1,383 | ) | (14,131 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 22 | 215 | 96 | 945 | ||||||||
Proceeds from reinvestment of distributions | 53 | 509 | 172 | 1,651 | ||||||||
Payments for shares redeemed | (274 | ) | (2,667 | ) | (432 | ) | (4,295 | ) | ||||
Net increase (decrease) | (199 | ) | (1,943 | ) | (164 | ) | (1,699 | ) | ||||
Class R1 | ||||||||||||
Proceeds from shares sold | 246 | 2,404 | 668 | 6,567 | ||||||||
Proceeds from reinvestment of distributions | 80 | 765 | 299 | 2,879 | ||||||||
Payments for shares redeemed | (1,220 | ) | (11,935 | ) | (1,696 | ) | (16,649 | ) | ||||
Net increase (decrease) | (894 | ) | (8,766 | ) | (729 | ) | (7,203 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 184 | 1,794 | 600 | 6,008 | ||||||||
Proceeds from reinvestment of distributions | 64 | 612 | 190 | 1,821 | ||||||||
Payments for shares redeemed | (304 | ) | (2,947 | ) | (701 | ) | (6,911 | ) | ||||
Net increase (decrease) | (56 | ) | (541 | ) | 89 | 918 | ||||||
Class R5 | ||||||||||||
Proceeds from shares sold | 147 | 1,445 | 310 | 3,078 | ||||||||
Proceeds from reinvestment of distributions | 55 | 526 | 191 | 1,844 | ||||||||
Payments for shares redeemed | (292 | ) | (2,858 | ) | (986 | ) | (9,862 | ) | ||||
Net increase (decrease) | (90 | ) | (887 | ) | (485 | ) | (4,940 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 487 | 4,766 | 1,759 | 17,277 | ||||||||
Proceeds from reinvestment of distributions | 170 | 1,636 | 575 | 5,531 | ||||||||
Payments for shares redeemed | (946 | ) | (9,248 | ) | (3,388 | ) | (33,243 | ) | ||||
Net increase (decrease) | (289 | ) | (2,846 | ) | (1,054 | ) | (10,435 | ) | ||||
Total increase (decrease) | (3,562 | ) | $ | (34,711 | ) | (4,773 | ) | $ | (47,792 | ) |
See accompanying notes which are an integral part of the financial statements.
16 Conservative Strategy Fund
(This page intentionally left blank)
Russell Investment Company
Conservative Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | |||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class A | |||||||||||||||
April 30, 2017* | 9.92 | .17 | .06 | .23 | (.18 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.65 | .24 | .13 | .37 | (.25 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.16 | .27 | (.26 | ) | .01 | (.27 | ) | (.25 | ) | ||||||
October 31, 2014 | 11.09 | .14 | .28 | .42 | (.13 | ) | (.22 | ) | |||||||
October 31, 2013 | 11.02 | .28 | .08 | .36 | (.27 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.53 | .24 | .50 | .74 | (.25 | ) | — | ||||||||
Class C | |||||||||||||||
April 30, 2017* | 9.82 | .14 | .04 | .18 | (.14 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.55 | .16 | .13 | .29 | (.17 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.06 | .18 | (.25 | ) | (.07) | (.19 | ) | (.25 | ) | ||||||
October 31, 2014 | 10.99 | .05 | .30 | .35 | (.06 | ) | (.22 | ) | |||||||
October 31, 2013 | 10.94 | .19 | .09 | .28 | (.21 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.46 | .16 | .49 | .65 | (.17 | ) | — | ||||||||
Class E | |||||||||||||||
April 30, 2017* | 9.97 | .18 | .04 | .22 | (.18 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.70 | .24 | .13 | .37 | (.25 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.21 | .26 | (.25 | ) | .01 | (.27 | ) | (.25 | ) | ||||||
October 31, 2014 | 11.13 | .14 | .29 | .43 | (.13 | ) | (.22 | ) | |||||||
October 31, 2013 | 11.05 | .30 | .07 | .37 | (.27 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.56 | .25 | .49 | .74 | (.25 | ) | — | ||||||||
Class R1 | |||||||||||||||
April 30, 2017* | 9.99 | .20 | .04 | .24 | (.20 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.72 | .29 | .12 | .41 | (.29 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.23 | .32 | (.26 | ) | .06 | (.32 | ) | (.25 | ) | ||||||
October 31, 2014 | 11.15 | .18 | .30 | .48 | (.18 | ) | (.22 | ) | |||||||
October 31, 2013 | 11.08 | .31 | .10 | .41 | (.32 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.59 | .28 | .51 | .79 | (.30 | ) | — | ||||||||
Class R4(1) | |||||||||||||||
April 30, 2017* | 9.94 | .18 | .05 | .23 | (.19 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.67 | .25 | .13 | .38 | (.26 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.18 | .29 | (.26 | ) | .03 | (.29 | ) | (.25 | ) | ||||||
October 31, 2014 | 11.10 | .15 | .30 | .45 | (.15 | ) | (.22 | ) | |||||||
October 31, 2013 | 11.03 | .32 | .06 | .38 | (.29 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.54 | .27 | .49 | .76 | (.27 | ) | — | ||||||||
Class R5(2) | |||||||||||||||
April 30, 2017* | 10.02 | .17 | .06 | .23 | (.18 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.74 | .23 | .13 | .36 | (.23 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.25 | .27 | (.27 | ) | — | (.26 | ) | (.25 | ) | ||||||
October 31, 2014 | 11.17 | .13 | .29 | .42 | (.12 | ) | (.22 | ) | |||||||
October 31, 2013 | 11.09 | .30 | .06 | .36 | (.26 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.60 | .28 | .44 | .72 | (.23 | ) | — | ||||||||
Class S | |||||||||||||||
April 30, 2017* | 10.00 | .19 | .04 | .23 | (.19 | ) | (.20 | ) | |||||||
October 31, 2016 | 10.73 | .28 | .11 | .39 | (.27 | ) | (.85 | ) | |||||||
October 31, 2015 | 11.24 | .30 | (.26 | ) | .04 | (.30 | ) | (.25 | ) | ||||||
October 31, 2014 | 11.16 | .16 | .30 | .46 | (.16 | ) | (.22 | ) | |||||||
October 31, 2013 | 11.09 | .31 | .08 | .39 | (.30 | ) | (.02 | ) | |||||||
October 31, 2012 | 10.60 | .28 | .49 | .77 | (.28 | ) | — | ||||||||
See accompanying notes which are an integral part of the financial statements.
18 Conservative Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g)(i) | Net(e)(f)(g)(i) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.38 | ) | 9.77 | 2.45 | 83,224 | .77 | .55 | 1.78 | 15 | |||||||||
(1.10 | ) | 9.92 | 3.97 | 88,921 | .76 | .54 | 2.47 | 18 | |||||||||
(.52 | ) | 10.65 | .11 | 106,603 | .75 | .55 | 2.54 | 39 | |||||||||
(.35 | ) | 11.16 | 3.92 | 124,288 | .75 | .56 | 1.22 | 26 | |||||||||
(.29 | ) | 11.09 | 3.35 | 136,433 | .73 | .57 | 2.55 | 21 | |||||||||
(.25 | ) | 11.02 | 7.15 | 133,172 | .72 | .56 | 2.28 | 22 | |||||||||
(.34 | ) | 9.66 | 1.98 | 143,365 | 1.52 | 1.30 | 1.42 | 15 | |||||||||
(1.02 | ) | 9.82 | 3.22 | 161,404 | 1.51 | 1.29 | 1.67 | 18 | |||||||||
(.44 | ) | 10.55 | (.64 | ) | 188,011 | 1.50 | 1.30 | 1.71 | 39 | ||||||||
(.28 | ) | 11.06 | 3.21 | 210,015 | 1.50 | 1.31 | .47 | 26 | |||||||||
(.23 | ) | 10.99 | 2.61 | 227,048 | 1.48 | 1.32 | 1.76 | 21 | |||||||||
(.17 | ) | 10.94 | 6.28 | 230,038 | 1.47 | 1.31 | 1.51 | 22 | |||||||||
(.38 | ) | 9.81 | 2.33 | 12,051 | .77 | .55 | 1.83 | 15 | |||||||||
(1.10 | ) | 9.97 | 3.95 | 14,227 | .76 | .54 | 2.43 | 18 | |||||||||
(.52 | ) | 10.70 | .12 | 17,017 | .75 | .55 | 2.43 | 39 | |||||||||
(.35 | ) | 11.21 | 3.99 | 20,901 | .75 | .56 | 1.22 | 26 | |||||||||
(.29 | ) | 11.13 | 3.40 | 24,180 | .74 | .57 | 2.75 | 21 | |||||||||
(.25 | ) | 11.05 | 7.11 | 39,156 | .72 | .56 | 2.32 | 22 | |||||||||
(.40 | ) | 9.83 | 2.53 | 10,451 | .52 | .17 | 2.04 | 15 | |||||||||
(1.14 | ) | 9.99 | 4.35 | 19,546 | .51 | .16 | 2.88 | 18 | |||||||||
(.57 | ) | 10.72 | .50 | 28,784 | .50 | .17 | 2.96 | 39 | |||||||||
(.40 | ) | 11.23 | 4.40 | 38,079 | .50 | .17 | 1.63 | 26 | |||||||||
(.34 | ) | 11.15 | 3.79 | 43,145 | .48 | .17 | 2.81 | 21 | |||||||||
(.30 | ) | 11.08 | 7.57 | 40,536 | .47 | .14 | 2.59 | 22 | |||||||||
(.39 | ) | 9.78 | 2.42 | 15,166 | .77 | .42 | 1.88 | 15 | |||||||||
(1.11 | ) | 9.94 | 4.11 | 15,964 | .76 | .41 | 2.56 | 18 | |||||||||
(.54 | ) | 10.67 | .23 | 16,189 | .75 | .42 | 2.70 | 39 | |||||||||
(.37 | ) | 11.18 | 4.14 | 25,502 | .75 | .42 | 1.38 | 26 | |||||||||
(.31 | ) | 11.10 | 3.51 | 35,427 | .73 | .42 | 2.95 | 21 | |||||||||
(.27 | ) | 11.03 | 7.32 | 44,214 | .72 | .39 | 2.51 | 22 | |||||||||
(.38 | ) | 9.87 | 2.36 | 12,958 | 1.02 | .67 | 1.70 | 15 | |||||||||
(1.08 | ) | 10.02 | 3.88 | 14,067 | 1.01 | .66 | 2.33 | 18 | |||||||||
(.51 | ) | 10.74 | (.03 | ) | 20,285 | 1.00 | .67 | 2.45 | 39 | ||||||||
(.34 | ) | 11.25 | 3.83 | 27,768 | 1.00 | .67 | 1.16 | 26 | |||||||||
(.28 | ) | 11.17 | 3.30 | 42,335 | .98 | .67 | 2.76 | 21 | |||||||||
(.23 | ) | 11.09 | 6.91 | 63,878 | .98 | .64 | 2.60 | 22 | |||||||||
(.39 | ) | 9.84 | 2.46 | 39,853 | .52 | .30 | 1.92 | 15 | |||||||||
(1.12 | ) | 10.00 | 4.20 | 43,375 | .51 | .29 | 2.77 | 18 | |||||||||
(.55 | ) | 10.73 | .36 | 57,824 | .50 | .30 | 2.78 | 39 | |||||||||
(.38 | ) | 11.24 | 4.25 | 83,582 | .50 | .31 | 1.46 | 26 | |||||||||
(.32 | ) | 11.16 | 3.59 | 82,691 | .48 | .32 | 2.82 | 21 | |||||||||
(.28 | ) | 11.09 | 7.37 | 95,523 | .47 | .31 | 2.61 | 22 |
See accompanying notes which are an integral part of the financial statements.
Conservative Strategy Fund 19
Russell Investment Company
Conservative Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 9,539 |
Administration fees | 11,201 | |
Distribution fees | 108,578 | |
Shareholder servicing fees | 37,853 | |
Transfer agent fees | 43,005 | |
Trustee fees | 2,154 | |
$ | 212,330 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 328 | $ | 10,958 | $ | 1,631 | $ | 43 | $ | 42 | $ | 9,740 | $ | — | $ | — | ||||
Global Infrastructure Fund | 8,872 | 626 | 2,107 | 125 | 171 | 7,687 | 148 | 243 | ||||||||||||
Global Real Estate Securities Fund | 14,155 | 72 | 13,356 | 2,061 | (2,376 | ) | 556 | 22 | 38 | |||||||||||
Select U.S. Equity Fund | 7,096 | 135 | 1,686 | 111 | 741 | 6,397 | 53 | — | ||||||||||||
U.S. Defensive Equity Fund | 332 | 43 | 104 | (1 | ) | 11 | 281 | 2 | 23 | |||||||||||
U.S. Dynamic Equity Fund | 4,630 | 252 | 1,339 | 118 | 330 | 3,991 | 31 | 170 | ||||||||||||
Global Opportunistic Credit Fund | 21,294 | 525 | 12,262 | (326 | ) | 190 | 9,421 | 480 | — | |||||||||||
Investment Grade Bond Fund | 35,500 | 1,551 | 7,728 | (207 | ) | (1,622 | ) | 27,494 | 1,269 | 103 | ||||||||||
Short Duration Bond Fund | 81,700 | 940 | 9,050 | 151 | (626 | ) | 73,115 | 690 | — | |||||||||||
Strategic Bond Fund | 60,381 | 6,481 | 7,892 | 223 | (2,834 | ) | 56,359 | 1,831 | 343 | |||||||||||
Unconstrained Total Return Fund | 17,752 | 4,452 | 2,297 | (19 | ) | (87 | ) | 19,801 | 340 | 42 | ||||||||||
Emerging Markets Fund | 7,088 | 311 | 1,743 | (29 | ) | 629 | 6,256 | 85 | — | |||||||||||
Select International Equity Fund | 7,100 | 276 | 1,630 | (212 | ) | 736 | 6,270 | 159 | — | |||||||||||
Multi-Strategy Income Fund | 81,707 | 21,460 | 22,287 | (213 | ) | 3,221 | 83,888 | 1,855 | — | |||||||||||
U.S. Cash Management Fund | 8,027 | 9,181 | 12,931 | 1 | (1 | ) | 4,277 | 18 | — | |||||||||||
$ | 355,962 | $ | 57,263 | $ | 98,043 | $ | 1,826 | $ | (1,475 | ) | $ | 315,533 | $ | 6,983 | $ | 962 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 306,954,281 | ||
Unrealized Appreciation | $ | 9,034,704 | ||
Unrealized Depreciation | (456,478 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 8,578,226 |
See accompanying notes which are an integral part of the financial statements.
20 Conservative Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,044.00 | $ | 1,022.36 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 2.48 | $ | 2.46 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.49% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
Hypothetical | ||||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Class C | Performance | expenses) | |||
Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,040.40 | $ | 1,018.65 | |
Expenses Paid During Period* | $ | 6.27 | $ | 6.21 | ||
Hypothetical Example for Comparison Purposes | ||||||
The information in the table under the heading “Hypothetical | * Expenses are equal to the Fund's annualized expense ratio of 1.24% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
based on the Fund’s actual expense ratio and an assumed rate of | waivers and/or reimbursements, expenses would have been higher. | |||||
return of 5% per year before expenses, which is not the Fund’s | ||||||
Hypothetical | ||||||
actual return. The hypothetical account values and expenses | Performance (5% | |||||
may not be used to estimate the actual ending account balance or | Actual | return before | ||||
expenses you paid for the period. You may use this information | Class E | Performance | expenses) | |||
to compare the ongoing costs of investing in the Fund and other | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
funds. To do so, compare this 5% hypothetical example with the | Ending Account Value | |||||
5% hypothetical examples that appear in the shareholder reports | April 30, 2017 | $ | 1,043.30 | $ | 1,021.97 | |
of other funds. | Expenses Paid During Period* | $ | 2.89 | $ | 2.86 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.57% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Moderate Strategy Fund 21
Russell Investment Company
Moderate Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R1 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,045.10 | $ | 1,023.60 | ||
Expenses Paid During Period* | $ | 1.22 | $ | 1.20 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.24% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R4 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,044.80 | $ | 1,022.36 | ||
Expenses Paid During Period* | $ | 2.48 | $ | 2.46 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.49% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R5 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,043.20 | $ | 1,021.12 | ||
Expenses Paid During Period* | $ | 3.75 | $ | 3.71 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.74% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,045.70 | $ | 1,023.21 | ||
Expenses Paid During Period* | $ | 1.62 | $ | 1.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.32% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
22 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||||
Fair | ||||||
Value | ||||||
Shares | $ | |||||
Investments in Affiliated Funds - 98.3% | ||||||
Alternative - 7.5% | ||||||
Commodity Strategies Fund Class Y | 2,829,230 | 15,448 | ||||
Global Infrastructure Fund Class Y | 1,299,708 | 15,453 | ||||
Global Real Estate Securities Fund Class Y | 258,596 | 8,720 | ||||
39,621 | ||||||
Domestic Equities - 5.9% | ||||||
Select U.S. Equity Fund Class Y | 689,527 | 8,509 | ||||
U.S. Defensive Equity Fund Class Y | 6,163 | 313 | ||||
U.S. Dynamic Equity Fund Class Y | 109,698 | 1,200 | ||||
U.S. Small Cap Equity Fund Class Y | 661,167 | 21,283 | ||||
31,305 | ||||||
Fixed Income - 55.6% | ||||||
Global Opportunistic Credit Fund Class Y | 8,888,064 | 87,281 | ||||
Investment Grade Bond Fund Class Y | 3,029,664 | 64,259 | ||||
Strategic Bond Fund Class Y | 10,975,684 | 116,123 | ||||
Unconstrained Total Return Fund Class Y | 2,658,790 | 26,482 | ||||
294,145 | ||||||
International Equities - 19.3% | ||||||
Emerging Markets Fund Class Y | 1,860,396 | 33,971 | ||||
Global Equity Fund Class Y | 3,361,151 | 36,300 | ||||
Select International Equity Fund Class Y | 3,387,407 | 31,503 | ||||
101,774 | ||||||
Multi-Asset - 10.0% | ||||||
Multi-Strategy Income Fund Class Y | 5,298,222 | 52,982 | ||||
Total Investments in Affiliated Funds | ||||||
(cost $486,843) | 519,827 | |||||
Options Purchased - 0.1% | ||||||
(Number of Contracts) | ||||||
EURO STOXX 50 Index | ||||||
May 2017 3,303.33 Call (2,365) | EUR | 7,812 | (ÿ) | 589 | ||
S&P 500 Index | ||||||
Jun 2017 2,395.40 Call (7,590) | USD | 18,181 | (ÿ) | 178 | ||
Total Options Purchased | ||||||
(cost $549) | 767 | |||||
Short-Term Investments - 0.5% | ||||||
U.S. Cash Management Fund | 2,729,860 | (8) | 2,730 | |||
Total Short-Term Investments | ||||||
(cost $2,730) | 2,730 | |||||
Total Investments 98.9% | ||||||
(identified cost $490,122) | 523,324 | |||||
Other Assets and Liabilities, Net - 1.1% | 5,607 | |||||
Net Assets - 100.0% | 528,931 |
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 23
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Amsterdam Index Futures | 22 | EUR | 2,273 | 05/17 | 56 | ||
CAC40 Euro Index Futures | 128 | EUR | 6,675 | 05/17 | 380 | ||
DAX Index Futures | 19 | EUR | 5,922 | 06/17 | 233 | ||
FTSE/MIB Index Futures | 14 | EUR | 1,420 | 06/17 | 92 | ||
IBEX 35 Index Futures | 22 | EUR | 2,360 | 05/17 | 124 | ||
OMXS30 Index Futures | 90 | SEK | 14,562 | 05/17 | 72 | ||
S&P 500 E-Mini Index Futures | 116 | USD | 13,807 | 06/17 | 90 | ||
S&P Mid 400 E-Mini Index Futures | 4 | USD | 692 | 06/17 | 11 | ||
Short Positions | |||||||
Dow Jones U.S. Real Estate Index Futures | 217 | USD | 6,762 | 06/17 | (294 | ) | |
EURO STOXX 50 Index Futures | 117 | EUR | 4,104 | 06/17 | (227 | ) | |
FTSE 100 Index Futures | 20 | GBP | 1,433 | 06/17 | 31 | ||
Hang Seng Index Futures | 3 | HKD | 3,684 | 05/17 | (5 | ) | |
MSCI Emerging Markets Mini Index Futures | 101 | USD | 4,944 | 06/17 | (259 | ) | |
MSCI Singapore Index Futures | 3 | SGD | 104 | 05/17 | (1 | ) | |
Russell 1000 Mini Index Futures | 20 | USD | 1,320 | 06/17 | (11 | ) | |
Russell 2000 Mini Index Futures | 14 | USD | 979 | 06/17 | (24 | ) | |
S&P 500 E-Mini Index Futures | 193 | USD | 22,972 | 06/17 | (180 | ) | |
S&P Mid 400 E-Mini Index Futures | 10 | USD | 1,730 | 06/17 | (28 | ) | |
S&P/TSX 60 Index Futures | 42 | CAD | 7,701 | 06/17 | (29 | ) | |
SPI 200 Index Futures | 46 | AUD | 6,800 | 06/17 | (144 | ) | |
TOPIX Index Futures | 48 | JPY | 734,399 | 06/17 | 46 | ||
United States 2 Year Treasury Note Futures | 31 | USD | 6,715 | 06/17 | (10 | ) | |
United States 5 Year Treasury Note Futures | 108 | USD | 12,788 | 06/17 | (91 | ) | |
United States 10 Year Treasury Note Futures | 70 | USD | 8,800 | 06/17 | (85 | ) | |
United States Long Bond Futures | 4 | USD | 612 | 06/17 | (11 | ) | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | (264 | ) |
Options Written | ||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||
Number of | Strike | Notional | Expiration | Fair Value | ||||||||
Call/Put | Contracts | Price | Amount | Date | $ | |||||||
EURO STOXX 50 Index | Put | 2,365 | 2,939.96 | EUR | 6,953 | 05/19/17 | (2 | ) | ||||
S&P 500 Index | Put | 7,590 | 2,134.52 | USD | 16,201 | 06/16/17 | (25 | ) | ||||
Total Liability for Options Written (premiums received $194) | (27 | ) | ||||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||||||||
Number of | Premiums | |||||||||||
Contracts | Received | |||||||||||
Outstanding October 31, 2016 | — | $ | — | |||||||||
Opened | 250,434 | 585 | ||||||||||
Closed | (234,763 | ) | (377 | ) | ||||||||
Expired | (5,716 | ) | (14 | ) | ||||||||
Outstanding April 30, 2017 | 9,955 | $ | 194 |
See accompanying notes which are an integral part of the financial statements.
24 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 784 | EUR | 730 | 06/21/17 | 14 | |
Bank of America | USD | 1,475 | INR | 100,040 | 06/21/17 | 73 | |
Bank of America | USD | 1,058 | RUB | 62,970 | 06/21/17 | 36 | |
Bank of America | CNY | 131,410 | USD | 18,851 | 06/21/17 | (107 | ) |
Bank of America | GBP | 110 | USD | 138 | 06/21/17 | (5 | ) |
Bank of America | KRW | 6,606,860 | USD | 5,786 | 06/21/17 | (24 | ) |
Bank of America | TWD | 125,440 | USD | 4,097 | 06/21/17 | (64 | ) |
Bank of Montreal | USD | 4,948 | AUD | 6,540 | 06/21/17 | (54 | ) |
Bank of Montreal | USD | 947 | EUR | 895 | 06/21/17 | 30 | |
Bank of Montreal | USD | 172 | GBP | 140 | 06/21/17 | 9 | |
Bank of Montreal | USD | 353 | MXN | 7,120 | 06/21/17 | 22 | |
Bank of Montreal | USD | 6 | SEK | 58 | 06/21/17 | — | |
Bank of Montreal | USD | 536 | ZAR | 7,130 | 06/21/17 | (7 | ) |
Bank of Montreal | AUD | 729 | USD | 557 | 05/15/17 | 11 | |
Bank of Montreal | AUD | 3,128 | USD | 2,390 | 06/21/17 | 51 | |
Bank of Montreal | CAD | 996 | USD | 746 | 05/15/17 | 17 | |
Bank of Montreal | CAD | 600 | USD | 450 | 06/21/17 | 10 | |
Bank of Montreal | CHF | 653 | USD | 654 | 05/15/17 | (3 | ) |
Bank of Montreal | EUR | 2,295 | USD | 2,458 | 05/15/17 | (43 | ) |
Bank of Montreal | GBP | 1,054 | USD | 1,319 | 05/15/17 | (47 | ) |
Bank of Montreal | HKD | 2,044 | USD | 263 | 05/15/17 | — | |
Bank of Montreal | HKD | 853 | USD | 110 | 06/21/17 | — | |
Bank of Montreal | JPY | 183,927 | USD | 1,647 | 05/15/17 | (4 | ) |
Bank of Montreal | JPY | 73,608 | USD | 648 | 06/21/17 | (13 | ) |
Bank of Montreal | SEK | 2,438 | USD | 274 | 05/15/17 | (1 | ) |
Bank of Montreal | SGD | 133 | USD | 95 | 05/15/17 | — | |
Citigroup | AUD | 729 | USD | 557 | 05/15/17 | 11 | |
Citigroup | CAD | 996 | USD | 746 | 05/15/17 | 17 | |
Citigroup | CHF | 653 | USD | 654 | 05/15/17 | (3 | ) |
Citigroup | EUR | 2,295 | USD | 2,456 | 05/15/17 | (45 | ) |
Citigroup | GBP | 1,054 | USD | 1,317 | 05/15/17 | (48 | ) |
Citigroup | HKD | 2,044 | USD | 263 | 05/15/17 | — | |
Citigroup | JPY | 183,927 | USD | 1,648 | 05/15/17 | (3 | ) |
Citigroup | SEK | 2,438 | USD | 274 | 05/15/17 | (2 | ) |
Citigroup | SGD | 133 | USD | 95 | 05/15/17 | — | |
Citigroup | ZAR | 32,510 | USD | 2,317 | 06/21/17 | (95 | ) |
Commonwealth Bank of Australia | USD | 948 | EUR | 895 | 06/21/17 | 30 | |
Commonwealth Bank of Australia | USD | 172 | GBP | 140 | 06/21/17 | 9 | |
Commonwealth Bank of Australia | USD | 352 | MXN | 7,120 | 06/21/17 | 23 | |
Commonwealth Bank of Australia | USD | 6 | SEK | 58 | 06/21/17 | — | |
Commonwealth Bank of Australia | USD | 535 | ZAR | 7,130 | 06/21/17 | (6 | ) |
Commonwealth Bank of Australia | AUD | 3,128 | USD | 2,387 | 06/21/17 | 47 | |
Commonwealth Bank of Australia | CAD | 600 | USD | 450 | 06/21/17 | 10 | |
Commonwealth Bank of Australia | HKD | 853 | USD | 110 | 06/21/17 | — | |
Commonwealth Bank of Australia | JPY | 73,608 | USD | 649 | 06/21/17 | (13 | ) |
HSBC | USD | 539 | AUD | 722 | 05/15/17 | 2 | |
HSBC | USD | 695 | CAD | 949 | 05/15/17 | — | |
HSBC | USD | 651 | CHF | 645 | 05/15/17 | (3 | ) |
HSBC | USD | 2,524 | EUR | 2,309 | 05/15/17 | (8 | ) |
HSBC | USD | 1,320 | GBP | 1,020 | 05/15/17 | 1 | |
HSBC | USD | 257 | HKD | 1,999 | 05/15/17 | — | |
HSBC | USD | 1,573 | JPY | 175,271 | 05/15/17 | — | |
HSBC | USD | 267 | SEK | 2,355 | 05/15/17 | (1 | ) |
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 25
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
HSBC | USD | 93 | SGD | 130 | 05/15/17 | — | |
HSBC | AUD | 722 | USD | 539 | 06/07/17 | (2 | ) |
HSBC | CAD | 949 | USD | 696 | 06/07/17 | — | |
HSBC | CHF | 645 | USD | 652 | 06/07/17 | 3 | |
HSBC | EUR | 2,309 | USD | 2,527 | 06/07/17 | 8 | |
HSBC | GBP | 1,020 | USD | 1,321 | 06/07/17 | (1 | ) |
HSBC | HKD | 1,999 | USD | 257 | 06/07/17 | — | |
HSBC | JPY | 175,271 | USD | 1,574 | 06/07/17 | — | |
HSBC | SEK | 2,355 | USD | 268 | 06/07/17 | 1 | |
HSBC | SGD | 130 | USD | 93 | 06/07/17 | — | |
Royal Bank of Canada | USD | 539 | AUD | 722 | 05/15/17 | 1 | |
Royal Bank of Canada | USD | 695 | CAD | 949 | 05/15/17 | — | |
Royal Bank of Canada | USD | 650 | CHF | 645 | 05/15/17 | (2 | ) |
Royal Bank of Canada | USD | 2,523 | EUR | 2,309 | 05/15/17 | (6 | ) |
Royal Bank of Canada | USD | 945 | EUR | 895 | 06/21/17 | 33 | |
Royal Bank of Canada | USD | 1,320 | GBP | 1,020 | 05/15/17 | 2 | |
Royal Bank of Canada | USD | 172 | GBP | 140 | 06/21/17 | 9 | |
Royal Bank of Canada | USD | 257 | HKD | 1,999 | 05/15/17 | — | |
Royal Bank of Canada | USD | 1,572 | JPY | 175,271 | 05/15/17 | 1 | |
Royal Bank of Canada | USD | 353 | MXN | 7,120 | 06/21/17 | 22 | |
Royal Bank of Canada | USD | 267 | SEK | 2,355 | 05/15/17 | (1 | ) |
Royal Bank of Canada | USD | 6 | SEK | 58 | 06/21/17 | — | |
Royal Bank of Canada | USD | 93 | SGD | 130 | 05/15/17 | — | |
Royal Bank of Canada | USD | 535 | ZAR | 7,130 | 06/21/17 | (6 | ) |
Royal Bank of Canada | AUD | 722 | USD | 539 | 06/07/17 | (1 | ) |
Royal Bank of Canada | AUD | 3,128 | USD | 2,371 | 06/21/17 | 32 | |
Royal Bank of Canada | CAD | 949 | USD | 696 | 06/07/17 | — | |
Royal Bank of Canada | CAD | 600 | USD | 449 | 06/21/17 | 9 | |
Royal Bank of Canada | CHF | 645 | USD | 651 | 06/07/17 | 2 | |
Royal Bank of Canada | EUR | 2,309 | USD | 2,526 | 06/07/17 | 6 | |
Royal Bank of Canada | GBP | 1,020 | USD | 1,321 | 06/07/17 | (2 | ) |
Royal Bank of Canada | HKD | 1,999 | USD | 257 | 06/07/17 | — | |
Royal Bank of Canada | HKD | 853 | USD | 110 | 06/21/17 | — | |
Royal Bank of Canada | JPY | 175,271 | USD | 1,573 | 06/07/17 | (1 | ) |
Royal Bank of Canada | JPY | 73,608 | USD | 647 | 06/21/17 | (15 | ) |
Royal Bank of Canada | SEK | 2,355 | USD | 267 | 06/07/17 | 1 | |
Royal Bank of Canada | SGD | 130 | USD | 93 | 06/07/17 | — | |
Standard Chartered | USD | 947 | EUR | 895 | 06/21/17 | 30 | |
Standard Chartered | USD | 172 | GBP | 140 | 06/21/17 | 9 | |
Standard Chartered | USD | 352 | MXN | 7,120 | 06/21/17 | 23 | |
Standard Chartered | USD | 6 | SEK | 58 | 06/21/17 | — | |
Standard Chartered | USD | 535 | ZAR | 7,130 | 06/21/17 | (6 | ) |
Standard Chartered | AUD | 3,128 | USD | 2,389 | 06/21/17 | 50 | |
Standard Chartered | CAD | 600 | USD | 450 | 06/21/17 | 10 | |
Standard Chartered | HKD | 853 | USD | 110 | 06/21/17 | — | |
Standard Chartered | JPY | 73,608 | USD | 648 | 06/21/17 | (13 | ) |
State Street | USD | 10 | AUD | 13 | 05/15/17 | — | |
State Street | USD | 70 | CAD | 94 | 05/15/17 | (1 | ) |
State Street | USD | 17 | CHF | 17 | 05/15/17 | — | |
State Street | USD | 85 | GBP | 68 | 05/15/17 | 3 | |
State Street | USD | 12 | HKD | 90 | 05/15/17 | — | |
State Street | USD | 156 | JPY | 17,312 | 05/15/17 | (1 | ) |
State Street | USD | 19 | SEK | 167 | 05/15/17 | — |
See accompanying notes which are an integral part of the financial statements.
26 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||
Amounts in thousands | ||||||||
Unrealized | ||||||||
Appreciation | ||||||||
Amount | Amount | (Depreciation) | ||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||
State Street | USD | 4 | SGD | 6 | 05/15/17 | — | ||
State Street | EUR | 29 | USD | 31 | 05/15/17 | (1 | ) | |
State Street | RUB | 146,240 | USD | 2,550 | 06/21/17 | 9 | ||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 29 | |||||||
Credit Default Swap Contracts | ||||||||
Amounts in thousands | ||||||||
Credit Indices | ||||||||
Fund (Pays)/ | ||||||||
Receives | Termination | Fair Value | ||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | |||
CDX Emerging Markets Index | Bank of America | USD | 22,000 | (1.000 | %) | 06/20/22 | 949 | |
CDX NA High Yield Index | Bank of America | USD | 17,300 | 5.000 | % | 06/20/22 | 1,372 | |
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $2,282 | 2,321 |
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Investments in Affiliated Funds | $ | 519,827 | $ | — | $ | — | $ | — | $ | 519,827 | 98.3 | ||||||
Options Purchased | — | 767 | — | — | 767 | 0.1 | |||||||||||
Short-Term Investments | — | — | — | 2,730 | 2,730 | 0.5 | |||||||||||
Total Investments | 519,827 | 767 | — | 2,730 | 523,324 | 98.9 | |||||||||||
Other Assets and Liabilities, Net | 1.1 | ||||||||||||||||
100.0 | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 1,135 | — | — | — | 1,135 | 0.2 | |||||||||||
Foreign Currency Exchange Contracts | — | 687 | — | — | 687 | 0.1 | |||||||||||
Credit Default Swap Contracts | — | 2,321 | — | — | 2,321 | 0.4 | |||||||||||
' | |||||||||||||||||
Liabilities | |||||||||||||||||
Futures Contracts | (1,399 | ) | — | — | — | (1,399 | ) | (0.3 | ) | ||||||||
Options Written | — | (27 | ) | — | — | (27 | ) | (—)* | |||||||||
Foreign Currency Exchange Contracts | — | (658 | ) | — | — | (658 | ) | (0.1 | ) | ||||||||
Total Other Financial Instruments** | $ | (264 | ) | $ | 2,323 | $ | — | $ | — | $ | 2,059 |
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 27
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||
Amounts in thousands | |||||||
Fair Value | |||||||
Practical | |||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
28 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||||||
Equity | Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | |||||||
Location: Statement of Assets and Liabilities - Assets | |||||||||||
Investments, at fair value* | $ | 767 | $ | — | $ | — | $ | — | |||
Unrealized appreciation on foreign currency exchange contracts | — | — | 687 | — | |||||||
Variation margin on futures contracts** | 1,135 | — | — | — | |||||||
Credit default swap contracts, at fair value | — | 2,321 | — | — | |||||||
Total | $ | 1,902 | $ | 2,321 | $ | 687 | $ | — | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||||||
Variation margin on futures contracts** | $ | 1,202 | $ | — | $ | — | $ | 197 | |||
Unrealized depreciation on foreign currency exchange contracts | — | — | 658 | — | |||||||
Options written, at fair value | 27 | — | — | — | |||||||
Total | $ | 1,229 | $ | — | $ | 658 | $ | 197 | |||
Foreign | |||||||||||
Equity | Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | |||||||
Location: Statement of Operations - Net realized gain (loss) | |||||||||||
Investments*** | $ | (58 | ) | $ | — | $ | — | $ | — | ||
Futures contracts | 688 | — | — | 371 | |||||||
Options written | 491 | — | — | — | |||||||
Total return swap contracts | 124 | — | — | — | |||||||
Credit default swap contracts | — | 274 | — | — | |||||||
Foreign currency-related transactions**** | — | — | 1,213 | — | |||||||
Total | $ | 1,245 | $ | 274 | $ | 1,213 | $ | 371 | |||
Location: Statement of Operations - Net change in unrealized appreciation | |||||||||||
(depreciation) | |||||||||||
Investments***** | $ | 218 | $ | — | $ | — | $ | — | |||
Futures contracts | (8 | ) | — | — | (197 | ) | |||||
Options written | 167 | — | — | — | |||||||
Total return swap contracts | (487 | ) | — | — | — | ||||||
Credit default swap contracts | — | 40 | — | — | |||||||
Foreign currency-related transactions****** | — | — | (872 | ) | — | ||||||
Total | $ | (110 | ) | $ | 40 | $ | (872 | ) | $ | (197 | ) |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 29
Russell Investment Company
Moderate Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | ||||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||||
Gross | Net Amounts | |||||||||||
Amounts | of Assets | |||||||||||
Gross | Offset in the | Presented in | ||||||||||
Amounts of | Statement of | the Statement | ||||||||||
Recognized | Assets and | of Assets and | ||||||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | ||||||||
Options Purchased Contracts | Investments, at fair value | $ | 767 | $ | — $ | 767 | ||||||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 687 | — | 687 | ||||||||
Futures Contracts | Variation margin on futures contracts | 233 | — | 233 | ||||||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 2,321 | — | 2,321 | ||||||||
Total Financial and Derivative Assets | 4,008 | — | 4,008 | |||||||||
Financial and Derivative Assets not subject to a netting agreement | (2,551 | ) | — | (2,551 | ) | |||||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 1,457 | $ | — $ | 1,457 | |||||||
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | ||||||||||||
Gross Amounts Not Offset in | ||||||||||||
the Statement of Assets and | ||||||||||||
Liabilities | ||||||||||||
Net Amounts | ||||||||||||
of Assets | ||||||||||||
Presented in | ||||||||||||
the Statement | Financial and | |||||||||||
of Assets and | Derivative | Collateral | ||||||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | ||||||||
Bank of America | $ | 123 | $ | 123 | $ | — | — | |||||
Bank of Montreal | 151 | 104 | — | 47 | ||||||||
Citigroup | 29 | 29 | — | — | ||||||||
Commonwealth Bank of Australia | 119 | 19 | — | 100 | ||||||||
HSBC | 15 | 15 | — | — | ||||||||
JPMorgan Chase | 767 | 27 | — | 740 | ||||||||
Royal Bank of Canada | 119 | 35 | — | 84 | ||||||||
Standard Chartered | 122 | 19 | — | 103 | ||||||||
State Street | 12 | 3 | — | 9 | ||||||||
Total | $ | 1,457 | $ | 374 | $ | — | 1,083 |
See accompanying notes which are an integral part of the financial statements.
30 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 106 | $ | — $ | 106 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 658 | — | 658 | |||||
Options Written Contracts | Options written, at fair value | 27 | — | 27 | |||||
Total Financial and Derivative Liabilities | 791 | — | 791 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (103 | ) | — | (103 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 688 | $ | — $ | 688 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 199 | $ | 123 | $ | — | $ 76 | ||
Bank of Montreal | 173 | 104 | — | 69 | |||||
Citigroup | 197 | 29 | — | 168 | |||||
Commonwealth Bank of Australia | 19 | 19 | — | — | |||||
HSBC | 16 | 15 | — | 1 | |||||
JPMorgan Chase | 27 | 27 | — | — | |||||
Royal Bank of Canada | 35 | 35 | — | — | |||||
Standard Chartered | 19 | 19 | — | — | |||||
State Street | 3 | 3 | — | — | |||||
Total | $ | 688 | $ | 374 | $ | — | $ 314 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 31
Russell Investment Company
Moderate Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 490,122 |
Investments, at fair value(>) | 523,324 | |
Cash (restricted)(a)(b) | 7,170 | |
Unrealized appreciation on foreign currency exchange contracts | 687 | |
Receivables: | ||
Dividends from affiliated funds | 2 | |
Investments sold | 300 | |
Fund shares sold | 332 | |
Variation margin on futures contracts | 233 | |
Prepaid expenses | 6 | |
Credit default swap contracts, at fair value(+) | 2,321 | |
Total assets | 534,375 | |
Liabilities | ||
Payables: | ||
Due to custodian | 203 | |
Due to broker (c) | 3,618 | |
Fund shares redeemed | 433 | |
Accrued fees to affiliates | 303 | |
Other accrued expenses | 96 | |
Variation margin on futures contracts | 106 | |
Unrealized depreciation on foreign currency exchange contracts | 658 | |
Options written, at fair value(x) | 27 | |
Total liabilities | 5,444 | |
Net Assets | $ | 528,931 |
See accompanying notes which are an integral part of the financial statements.
32 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (1,613 | ) |
Accumulated net realized gain (loss) | (2,564 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 33,202 | ||
Futures contracts | (264 | ) | |
Options written | 167 | ||
Credit default swap contracts | 39 | ||
Foreign currency-related transactions | 29 | ||
Shares of beneficial interest | 516 | ||
Additional paid-in capital | 499,419 | ||
Net Assets | $ | 528,931 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 10.29 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 10.92 | |
Class A — Net assets | $ | 172,788,717 | |
Class A — Shares outstanding ($.01 par value) | 16,792,391 | ||
Net asset value per share: Class C(#) | $ | 10.17 | |
Class C — Net assets | $ | 201,487,960 | |
Class C — Shares outstanding ($.01 par value) | 19,812,712 | ||
Net asset value per share: Class E(#) | $ | 10.32 | |
Class E — Net assets | $ | 6,633,067 | |
Class E — Shares outstanding ($.01 par value) | 642,520 | ||
Net asset value per share: Class R1(#) | $ | 10.34 | |
Class R1 — Net assets | $ | 11,696,786 | |
Class R1 — Shares outstanding ($.01 par value) | 1,130,860 | ||
Net asset value per share: Class R4(#) | $ | 10.31 | |
Class R4 — Net assets | $ | 22,689,176 | |
Class R4 — Shares outstanding ($.01 par value) | 2,201,015 | ||
Net asset value per share: Class R5(#) | $ | 10.37 | |
Class R5 — Net assets | $ | 15,719,255 | |
Class R5 — Shares outstanding ($.01 par value) | 1,516,336 | ||
Net asset value per share: Class S(#) | $ | 10.34 | |
Class S — Net assets | $ | 97,915,869 | |
Class S — Shares outstanding ($.01 par value) | 9,471,058 | ||
Amounts in thousands | |||
(x) Premiums received on options written | $ | 194 | |
(+) Credit default swap contracts - premiums paid (received) | $ | 2,282 | |
(>) Investments in affiliated funds | $ | 522,557 | |
(a) Cash Collateral for Futures | $ | 4,800 | |
(b) Cash Collateral for Swaps | $ | 2,370 | |
(c) Due to Broker for Swaps | $ | 3,618 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 33
Russell Investment Company
Moderate Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 13,284 | |
Expenses | |||
Advisory fees | 547 | ||
Administrative fees | 116 | ||
Custodian fees | 32 | ||
Distribution fees - Class A | 218 | ||
Distribution fees - Class C | 786 | ||
Distribution fees - Class R5 | 20 | ||
Transfer agent fees - Class A | 174 | ||
Transfer agent fees - Class C | 210 | ||
Transfer agent fees - Class E | 8 | ||
Transfer agent fees - Class R1 | 17 | ||
Transfer agent fees - Class R4 | 24 | ||
Transfer agent fees - Class R5 | 16 | ||
Transfer agent fees - Class S | 98 | ||
Professional fees | 24 | ||
Registration fees | 57 | ||
Shareholder servicing fees - Class C | 262 | ||
Shareholder servicing fees - Class E | 10 | ||
Shareholder servicing fees - Class R4 | 31 | ||
Shareholder servicing fees - Class R5 | 20 | ||
Trustees’ fees | 10 | ||
Printing fees | 37 | ||
Miscellaneous | 8 | ||
Expenses before reductions | 2,725 | ||
Expense reductions | (679 | ) | |
Net expenses | 2,046 | ||
Net investment income (loss) | 11,238 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | (1,200 | ) | |
Futures contracts | 1,059 | ||
Options written | 491 | ||
Total return swap contracts | 124 | ||
Credit default swap contracts | 274 | ||
Foreign currency-related transactions | 1,213 | ||
Capital gain distributions from affiliated funds | 4,310 | ||
Net realized gain (loss) | 6,271 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 6,616 | ||
Futures contracts | (205 | ) | |
Options written | 167 | ||
Total return swap contracts | (487 | ) | |
Credit default swap contracts | 40 | ||
Foreign currency-related transactions | (872 | ) | |
Net change in unrealized appreciation (depreciation) | 5,259 | ||
Net realized and unrealized gain (loss) | 11,530 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 22,768 |
See accompanying notes which are an integral part of the financial statements.
34 Moderate Strategy Fund
Russell Investment Company
Moderate Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 11,238 | $ | 14,625 | ||
Net realized gain (loss) | 6,271 | 25,185 | ||||
Net change in unrealized appreciation (depreciation) | 5,259 | (11,611 | ) | |||
Net increase (decrease) in net assets from operations | 22,768 | 28,199 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (4,490 | ) | (5,081 | ) | ||
Class C | (4,750 | ) | (4,766 | ) | ||
Class E | (221 | ) | (289 | ) | ||
Class R1 | (499 | ) | (785 | ) | ||
Class R4 | (634 | ) | (812 | ) | ||
Class R5 | (398 | ) | (500 | ) | ||
Class S | (2,629 | ) | (3,100 | ) | ||
From net realized gain | ||||||
Class A | (8,324 | ) | (20,300 | ) | ||
Class C | (10,366 | ) | (26,556 | ) | ||
Class E | (430 | ) | (1,258 | ) | ||
Class R1 | (900 | ) | (3,336 | ) | ||
Class R4 | (1,194 | ) | (3,331 | ) | ||
Class R5 | (782 | ) | (2,271 | ) | ||
Class S | (4,724 | ) | (11,655 | ) | ||
Net decrease in net assets from distributions | (40,341 | ) | (84,040 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (39,124 | ) | (57,990 | ) | ||
Total Net Increase (Decrease) in Net Assets | (56,697 | ) | (113,831 | ) | ||
Net Assets | ||||||
Beginning of period | 585,628 | 699,459 | ||||
End of period | $ | 528,931 | $ | 585,628 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (1,613 | ) | $ | 770 |
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 35
Russell Investment Company
Moderate Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 831 | $ | 8,423 | 1,669 | $ | 17,171 | ||||||
Proceeds from reinvestment of distributions | 1,276 | 12,636 | 2,490 | 25,066 | ||||||||
Payments for shares redeemed | (2,448 | ) | (25,052 | ) | (4,483 | ) | (46,328 | ) | ||||
Net increase (decrease) | (341 | ) | (3,993 | ) | (324 | ) | (4,091 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 818 | 8,259 | 1,992 | 20,630 | ||||||||
Proceeds from reinvestment of distributions | 1,534 | 15,013 | 3,127 | 31,122 | ||||||||
Payments for shares redeemed | (3,970 | ) | (40,087 | ) | (6,866 | ) | (70,802 | ) | ||||
Net increase (decrease) | (1,618 | ) | (16,815 | ) | (1,747 | ) | (19,050 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 43 | 436 | 116 | 1,210 | ||||||||
Proceeds from reinvestment of distributions | 65 | 643 | 150 | 1,516 | ||||||||
Payments for shares redeemed | (349 | ) | (3,528 | ) | (551 | ) | (5,783 | ) | ||||
Net increase (decrease) | (241 | ) | (2,449 | ) | (285 | ) | (3,057 | ) | ||||
Class R1 | ||||||||||||
Proceeds from shares sold | 143 | 1,469 | 694 | 7,209 | ||||||||
Proceeds from reinvestment of distributions | 140 | 1,397 | 407 | 4,118 | ||||||||
Payments for shares redeemed | (1,032 | ) | (10,554 | ) | (2,319 | ) | (23,897 | ) | ||||
Net increase (decrease) | (749 | ) | (7,688 | ) | (1,218 | ) | (12,570 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 130 | 1,331 | 321 | 3,363 | ||||||||
Proceeds from reinvestment of distributions | 184 | 1,827 | 411 | 4,143 | ||||||||
Payments for shares redeemed | (667 | ) | (6,860 | ) | (1,015 | ) | (10,459 | ) | ||||
Net increase (decrease) | (353 | ) | (3,702 | ) | (283 | ) | (2,953 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 135 | 1,385 | 332 | 3,432 | ||||||||
Proceeds from reinvestment of distributions | 118 | 1,180 | 273 | 2,771 | ||||||||
Payments for shares redeemed | (388 | ) | (4,005 | ) | (1,007 | ) | (10,598 | ) | ||||
Net increase (decrease) | (135 | ) | (1,440 | ) | (402 | ) | (4,395 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 1,015 | 10,380 | 2,640 | 27,292 | ||||||||
Proceeds from reinvestment of distributions | 730 | 7,262 | 1,440 | 14,572 | ||||||||
Payments for shares redeemed | (2,022 | ) | (20,679 | ) | (5,112 | ) | (53,738 | ) | ||||
Net increase (decrease) | (277 | ) | (3,037 | ) | (1,032 | ) | (11,874 | ) | ||||
Total increase (decrease) | (3,714 | ) | $ | (39,124 | ) | (5,291 | ) | $ | (57,990 | ) |
See accompanying notes which are an integral part of the financial statements.
36 Moderate Strategy Fund
(This page intentionally left blank)
Russell Investment Company
Moderate Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | |||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class A | |||||||||||||||
April 30, 2017* | 10.63 | .22 | .21 | .43 | (.27 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.58 | .27 | .25 | .52 | (.30 | ) | (1.17 | ) | |||||||
October 31, 2015 | 12.02 | .31 | (.31 | ) | — | (.31 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.59 | .17 | .43 | .60 | (.17 | ) | — | ||||||||
October 31, 2013 | 11.06 | .26 | .53 | .79 | (.26 | ) | — | ||||||||
October 31, 2012 | 10.51 | .24 | .55 | .79 | (.24 | ) | — | ||||||||
Class C | |||||||||||||||
April 30, 2017* | 10.51 | .18 | .21 | .39 | (.23 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.46 | .19 | .25 | .44 | (.22 | ) | (1.17 | ) | |||||||
October 31, 2015 | 11.90 | .22 | (.31 | ) | (.09) | (.22 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.49 | .08 | .42 | .50 | (.09 | ) | — | ||||||||
October 31, 2013 | 10.99 | .18 | .52 | .70 | (.20 | ) | — | ||||||||
October 31, 2012 | 10.44 | .16 | .55 | .71 | (.16 | ) | — | ||||||||
Class E | |||||||||||||||
April 30, 2017* | 10.66 | .24 | .19 | .43 | (.27 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.60 | .27 | .25 | .52 | (.29 | ) | (1.17 | ) | |||||||
October 31, 2015 | 12.04 | .36 | (.37 | ) | (.01) | (.30 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.61 | .18 | .42 | .60 | (.17 | ) | — | ||||||||
October 31, 2013 | 11.08 | .29 | .50 | .79 | (.26 | ) | — | ||||||||
October 31, 2012 | 10.52 | .23 | .57 | .80 | (.24 | ) | — | ||||||||
Class R1 | |||||||||||||||
April 30, 2017* | 10.68 | .25 | .20 | .45 | (.29 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.62 | .34 | .21 | .55 | (.32 | ) | (1.17 | ) | |||||||
October 31, 2015 | 12.07 | .36 | (.34 | ) | .02 | (.34 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.63 | .23 | .42 | .65 | (.21 | ) | — | ||||||||
October 31, 2013 | 11.11 | .31 | .51 | .82 | (.30 | ) | — | ||||||||
October 31, 2012 | 10.56 | .27 | .57 | .84 | (.29 | ) | — | ||||||||
Class R4(1) | |||||||||||||||
April 30, 2017* | 10.64 | .22 | .22 | .44 | (.27 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.59 | .28 | .24 | .52 | (.30 | ) | (1.17 | ) | |||||||
October 31, 2015 | 12.03 | .33 | (.33 | ) | — | (.31 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.60 | .20 | .41 | .61 | (.18 | ) | — | ||||||||
October 31, 2013 | 11.08 | .29 | .51 | .80 | (.28 | ) | — | ||||||||
October 31, 2012 | 10.52 | .26 | .56 | .82 | (.26 | ) | — | ||||||||
Class R5(2) | |||||||||||||||
April 30, 2017* | 10.70 | .21 | .22 | .43 | (.26 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.64 | .25 | .25 | .50 | (.27 | ) | (1.17 | ) | |||||||
October 31, 2015 | 12.08 | .32 | (.35 | ) | (.03) | (.28 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.64 | .17 | .42 | .59 | (.15 | ) | — | ||||||||
October 31, 2013 | 11.12 | .30 | .47 | .77 | (.25 | ) | — | ||||||||
October 31, 2012 | 10.56 | .27 | .51 | .78 | (.22 | ) | — | ||||||||
Class S | |||||||||||||||
April 30, 2017* | 10.67 | .23 | .22 | .45 | (.28 | ) | (.50 | ) | |||||||
October 31, 2016 | 11.62 | .29 | .24 | .53 | (.31 | ) | (1.17 | ) | |||||||
October 31, 2015 | 12.06 | .34 | (.32 | ) | .02 | (.33 | ) | (.13 | ) | ||||||
October 31, 2014 | 11.63 | .20 | .43 | .63 | (.20 | ) | — | ||||||||
October 31, 2013 | 11.11 | .30 | .51 | .81 | (.29 | ) | — | ||||||||
October 31, 2012 | 10.55 | .27 | .56 | .83 | (.27 | ) | — | ||||||||
See accompanying notes which are an integral part of the financial statements.
38 Moderate Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.77 | ) | 10.29 | 4.40 | 172,789 | .75 | .49 | 2.13 | 7 | |||||||||
(1.47 | ) | 10.63 | 5.29 | 182,049 | .74 | .49 | 2.58 | 34 | |||||||||
(.44 | ) | 11.58 | (.04 | ) | 202,107 | .74 | .51 | 2.61 | 32 | ||||||||
(.17 | ) | 12.02 | 5.19 | 222,875 | .73 | .56 | 1.45 | 14 | |||||||||
(.26 | ) | 11.59 | 7.22 | 235,684 | .72 | .57 | 2.35 | 13 | |||||||||
(.24 | ) | 11.06 | 7.67 | 232,467 | .71 | .56 | 2.21 | 23 | |||||||||
(.73 | ) | 10.17 | 4.04 | 201,488 | 1.50 | 1.24 | 1.79 | 7 | |||||||||
(1.39 | ) | 10.51 | 4.53 | 225,204 | 1.49 | 1.24 | 1.83 | 34 | |||||||||
(.35 | ) | 11.46 | (.80 | ) | 265,698 | 1.49 | 1.26 | 1.88 | 32 | ||||||||
(.09 | ) | 11.90 | 4.39 | 301,445 | 1.48 | 1.31 | .70 | 14 | |||||||||
(.20 | ) | 11.49 | 6.42 | 318,120 | 1.47 | 1.32 | 1.60 | 13 | |||||||||
(.16 | ) | 10.99 | 6.91 | 314,391 | 1.46 | 1.31 | 1.48 | 23 | |||||||||
(.77 | ) | 10.32 | 4.33 | 6,633 | .75 | .57 | 2.38 | 7 | |||||||||
(1.46 | ) | 10.66 | 5.26 | 9,421 | .74 | .57 | 2.62 | 34 | |||||||||
(.43 | ) | 11.60 | (.14 | ) | 13,559 | .73 | .56 | 3.07 | 32 | ||||||||
(.17 | ) | 12.04 | 5.18 | 37,485 | .73 | .56 | 1.51 | 14 | |||||||||
(.26 | ) | 11.61 | 7.17 | 47,129 | .72 | .57 | 2.56 | 13 | |||||||||
(.24 | ) | 11.08 | 7.75 | 74,240 | .71 | .56 | 2.14 | 23 | |||||||||
(.79 | ) | 10.34 | 4.51 | 11,697 | .50 | .24 | 2.47 | 7 | |||||||||
(1.49 | ) | 10.68 | 5.60 | 20,069 | .49 | .24 | 3.23 | 34 | |||||||||
(.47 | ) | 11.62 | .18 | 36,011 | .49 | .21 | 3.07 | 32 | |||||||||
(.21 | ) | 12.07 | 5.67 | 53,016 | .48 | .17 | 1.92 | 14 | |||||||||
(.30 | ) | 11.63 | 7.57 | 69,274 | .47 | .17 | 2.71 | 13 | |||||||||
(.29 | ) | 11.11 | 8.10 | 66,823 | .46 | .14 | 2.48 | 23 | |||||||||
(.77 | ) | 10.31 | 4.48 | 22,689 | .75 | .49 | 2.17 | 7 | |||||||||
(1.47 | ) | 10.64 | 5.26 | 27,183 | .74 | .49 | 2.64 | 34 | |||||||||
(.44 | ) | 11.59 | (.01 | ) | 32,895 | .74 | .46 | 2.80 | 32 | ||||||||
(.18 | ) | 12.03 | 5.31 | 45,828 | .73 | .42 | 1.68 | 14 | |||||||||
(.28 | ) | 11.60 | 7.31 | 67,330 | .72 | .42 | 2.56 | 13 | |||||||||
(.26 | ) | 11.08 | 7.95 | 73,019 | .71 | .39 | 2.38 | 23 | |||||||||
(.76 | ) | 10.37 | 4.32 | 15,719 | 1.00 | .74 | 2.04 | 7 | |||||||||
(1.44 | ) | 10.70 | 5.06 | 17,668 | .99 | .74 | 2.39 | 34 | |||||||||
(.41 | ) | 11.64 | (.27 | ) | 23,915 | .99 | .71 | 2.70 | 32 | ||||||||
(.15 | ) | 12.08 | 5.10 | 36,598 | .98 | .67 | 1.46 | 14 | |||||||||
(.25 | ) | 11.64 | 7.01 | 57,788 | .97 | .67 | 2.63 | 13 | |||||||||
(.22 | ) | 11.12 | 7.55 | 86,756 | .97 | .64 | 2.56 | 23 | |||||||||
(.78 | ) | 10.34 | 4.57 | 97,916 | .50 | .32 | 2.25 | 7 | |||||||||
(1.48 | ) | 10.67 | 5.43 | 104,034 | .49 | .32 | 2.77 | 34 | |||||||||
(.46 | ) | 11.62 | .16 | 125,274 | .49 | .31 | 2.89 | 32 | |||||||||
(.20 | ) | 12.06 | 5.44 | 147,870 | .48 | .31 | 1.71 | 14 | |||||||||
(.29 | ) | 11.63 | 7.41 | 154,841 | .47 | .32 | 2.63 | 13 | |||||||||
(.27 | ) | 11.11 | 8.02 | 155,433 | .46 | .31 | 2.52 | 23 |
See accompanying notes which are an integral part of the financial statements.
Moderate Strategy Fund 39
Russell Investment Company
Moderate Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 7,048 |
Administration fees | 18,550 | |
Distribution fees | 163,703 | |
Shareholder servicing fees | 50,791 | |
Transfer agent fees | 59,200 | |
Trustee fees | 3,332 | |
$ | 302,624 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 17,198 | $ | 438 | $ | 2,101 | $ | (1,187 | ) $ | 1,100 | $ | 15,448 | $ | — | $ | — | ||||
Global Infrastructure Fund | 17,304 | 786 | 3,226 | (109 | ) | 698 | 15,453 | 287 | 474 | |||||||||||
Global Real Estate Securities Fund | 10,467 | 942 | 2,127 | (144 | ) | (418 | ) | 8,720 | 326 | 557 | ||||||||||
Select U.S. Equity Fund | 569 | 8,364 | 794 | 26 | 344 | 8,509 | 27 | — | ||||||||||||
U.S. Defensive Equity Fund | 312 | 38 | 46 | — | 9 | 313 | 2 | 23 | ||||||||||||
U.S. Dynamic Equity Fund | 10,430 | 451 | 10,523 | 1,120 | (278 | ) | 1,200 | 63 | 381 | |||||||||||
U.S. Small Cap Equity Fund | 22,756 | 664 | 5,695 | 68 | 3,490 | 21,283 | 147 | 45 | ||||||||||||
Global Opportunistic Credit Fund | 95,758 | 2,917 | 12,191 | (308 | ) | 1,105 | 87,281 | 2,481 | — | |||||||||||
Investment Grade Bond Fund | 72,677 | 2,864 | 7,664 | (152 | ) | (3,466 | ) | 64,259 | 2,605 | 210 | ||||||||||
Strategic Bond Fund | 130,738 | 4,736 | 13,690 | (122 | ) | (5,539 | ) | 116,123 | 3,934 | 735 | ||||||||||
Unconstrained Total Return Fund | 29,062 | 889 | 3,259 | (27 | ) | (183 | ) | 26,482 | 544 | 68 | ||||||||||
Emerging Markets Fund | 37,574 | 616 | 7,398 | (457 | ) | 3,636 | 33,971 | 445 | — | |||||||||||
Global Equity Fund | 30,135 | 9,281 | 4,809 | 843 | 850 | 36,300 | 459 | 1,817 | ||||||||||||
Select International Equity Fund | 34,841 | 918 | 6,833 | (663 | ) | 3,240 | 31,503 | 773 | — | |||||||||||
Multi-Strategy Income Fund | 58,046 | 1,469 | 8,314 | (31 | ) | 1,812 | 52,982 | 1,171 | — | |||||||||||
U.S. Cash Management Fund | 10,781 | 20,897 | 28,947 | 1 | (2 | ) | 2,730 | 20 | $ | — | ||||||||||
$ | 578,648 | $ | 56,270 | $ | 117,617 | $ | (1,142 | ) $ | 6,398 | $ | 522,557 | $ | 13,284 | $ | 4,310 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 498,383,803 | |||
Unrealized Appreciation | $ | 29,482,959 | |||
Unrealized Depreciation | (4,543,191 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 24,939,768 |
See accompanying notes which are an integral part of the financial statements.
40 Moderate Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,070.20 | $ | 1,022.56 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 2.31 | $ | 2.26 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.45% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
together with the amount you invested, to estimate the expenses | Hypothetical | |||||
that you paid over the period. Simply divide your account value by | Performance (5% | |||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Actual | return before | ||||
Class C | Performance | expenses) | ||||
= 8.6), then multiply the result by the number in the first column | Beginning Account Value | |||||
in the row entitled “Expenses Paid During Period” to estimate | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
the expenses you paid on your account during this period. | Ending Account Value | |||||
April 30, 2017 | $ | 1,066.40 | $ | 1,018.84 | ||
Hypothetical Example for Comparison Purposes | Expenses Paid During Period* | $ | 6.15 | $ | 6.01 | |
The information in the table under the heading “Hypothetical | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.20% | ||||||
Performance (5% return before expenses)” provides information | (representing the six month period annualized), multiplied by the average | |||||
about hypothetical account values and hypothetical expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
based on the Fund’s actual expense ratio and an assumed rate of | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
return of 5% per year before expenses, which is not the Fund’s | waivers and/or reimbursements, expenses would have been higher. | |||||
actual return. The hypothetical account values and expenses | Hypothetical | |||||
may not be used to estimate the actual ending account balance or | Performance (5% | |||||
expenses you paid for the period. You may use this information | Actual | return before | ||||
to compare the ongoing costs of investing in the Fund and other | Class E | Performance | expenses) | |||
Beginning Account Value | ||||||
funds. To do so, compare this 5% hypothetical example with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
5% hypothetical examples that appear in the shareholder reports | Ending Account Value | |||||
of other funds. | April 30, 2017 | $ | 1,069.10 | $ | 1,021.97 | |
Expenses Paid During Period* | $ | 2.92 | $ | 2.86 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.57% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Balanced Strategy Fund 41
Russell Investment Company
Balanced Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R1 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,071.30 | $ | 1,023.51 | ||
Expenses Paid During Period* | $ | 1.34 | $ | 1.30 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.26% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R4 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,070.30 | $ | 1,022.27 | ||
Expenses Paid During Period* | $ | 2.62 | $ | 2.56 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.51% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R5 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,068.00 | $ | 1,021.03 | ||
Expenses Paid During Period* | $ | 3.90 | $ | 3.81 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.76% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,071.00 | $ | 1,023.21 | ||
Expenses Paid During Period* | $ | 1.64 | $ | 1.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.32% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
42 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 97.6% | ||||
Alternative - 7.9% | ||||
Commodity Strategies Fund Class Y | 13,202,591 | 72,086 | ||
Global Infrastructure Fund Class Y | 5,584,072 | 66,395 | ||
Global Real Estate Securities Fund Class Y | 1,241,374 | 41,859 | ||
180,340 | ||||
Domestic Equities - 22.0% | ||||
Select U.S. Equity Fund Class Y | 18,324,965 | 226,130 | ||
U.S. Defensive Equity Fund Class Y | 857,861 | 43,554 | ||
U.S. Dynamic Equity Fund Class Y | 8,098,895 | 88,602 | ||
U.S. Small Cap Equity Fund Class Y | 4,354,132 | 140,159 | ||
498,445 | ||||
Fixed Income - 36.1% | ||||
Global Opportunistic Credit Fund Class Y | 23,053,824 | 226,389 | ||
Strategic Bond Fund Class Y | 40,937,998 | 433,123 | ||
Unconstrained Total Return Fund Class Y | 15,943,669 | 158,799 | ||
818,311 | ||||
International Equities - 27.6% | ||||
Emerging Markets Fund Class Y | 8,524,918 | 155,665 | ||
Global Equity Fund Class Y | 22,492,965 | 242,924 | ||
Select International Equity Fund Class Y | 24,525,825 | 228,090 | ||
626,679 | ||||
Multi-Asset - 4.0% | ||||
Multi-Strategy Income Fund Class Y | 9,187,503 | 91,875 | ||
Total Investments in Affiliated Funds | ||||
(cost $2,037,797) | 2,215,650 | |||
Options Purchased - 0.3% | ||||
(Number of Contracts) | ||||
EURO STOXX 50 Index | ||||
May 2017 3,303.33 Call (20,016) | EUR 66,119 (ÿ) | 4,988 | ||
S&P 500 Index | ||||
Jun 2017 2,395.40 Call (64,933) | USD 155,541 (ÿ) | 1,519 | ||
Total Options Purchased | ||||
(cost $4,679) | 6,507 | |||
Short-Term Investments - 0.5% | ||||
U.S. Cash Management Fund | 11,229,885 | (8) | 11,232 | |
Total Short-Term Investments | ||||
(cost $11,232) | 11,232 | |||
Total Investments 98.4% | ||||
(identified cost $2,053,708) | 2,233,389 | |||
Other Assets and Liabilities, Net - 1.6% | 35,594 | |||
Net Assets - 100.0% | 2,268,983 |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 43
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Amsterdam Index Futures | 120 | EUR | 12,400 | 05/17 | 303 | ||
CAC40 Euro Index Futures | 687 | EUR | 35,827 | 05/17 | 2,046 | ||
DAX Index Futures | 106 | EUR | 33,039 | 06/17 | 1,299 | ||
FTSE/MIB Index Futures | 76 | EUR | 7,711 | 06/17 | 497 | ||
IBEX 35 Index Futures | 117 | EUR | 12,552 | 05/17 | 658 | ||
OMXS30 Index Futures | 481 | SEK | 77,826 | 05/17 | 382 | ||
S&P 500 E-Mini Index Futures | 275 | USD | 32,732 | 06/17 | 256 | ||
Short Positions | |||||||
Dow Jones U.S. Real Estate Index Futures | 439 | USD | 13,679 | 06/17 | (594 | ) | |
EURO STOXX 50 Index Futures | 1,359 | EUR | 47,674 | 06/17 | (2,540 | ) | |
FTSE 100 Index Futures | 149 | GBP | 10,676 | 06/17 | 227 | ||
Hang Seng Index Futures | 15 | HKD | 18,421 | 05/17 | (28 | ) | |
MSCI Emerging Markets Mini Index Futures | 221 | USD | 10,818 | 06/17 | (557 | ) | |
MSCI Singapore Index Futures | 20 | SGD | 695 | 05/17 | (5 | ) | |
Russell 1000 Mini Index Futures | 154 | USD | 10,165 | 06/17 | (81 | ) | |
Russell 2000 Mini Index Futures | 28 | USD | 1,958 | 06/17 | (49 | ) | |
S&P 500 E-Mini Index Futures | 1,859 | USD | 221,268 | 06/17 | (1,732 | ) | |
S&P Mid 400 E-Mini Index Futures | 80 | USD | 13,840 | 06/17 | (187 | ) | |
S&P/TSX 60 Index Futures | 251 | CAD | 46,023 | 06/17 | (176 | ) | |
SPI 200 Index Futures | 255 | AUD | 37,695 | 06/17 | (799 | ) | |
TOPIX Index Futures | 300 | JPY | 4,590,001 | 06/17 | 287 | ||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | (793 | ) |
See accompanying notes which are an integral part of the financial statements.
44 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Options Written | ||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||
Number of | Strike | Notional | Expiration | Fair Value | ||||||||
Call/Put | Contracts | Price | Amount | Date | $ | |||||||
EURO STOXX 50 Index | Put | 20,016 | 2,939.96 | EUR | 58,846 | 05/19/17 | (18 | ) | ||||
S&P 500 Index | Put | 64,933 | 2,134.52 | USD | 138,601 | 06/16/17 | (213 | ) | ||||
Total Liability for Options Written (premiums received $1,653) | (231 | ) | ||||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||||||||
Number of | Premiums | |||||||||||
Contracts | Received | |||||||||||
Outstanding October 31, 2016 | 166,233 | $ | 2,373 | |||||||||
Opened | 1,968,556 | 3,607 | ||||||||||
Closed | (1,966,957 | ) | (3,200 | ) | ||||||||
Expired | (82,883 | ) | (1,127 | ) | ||||||||
Outstanding April 30, 2017 | 84,949 | $ | 1,653 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 2,951 | INR | 200,150 | 06/21/17 | 146 | |
Bank of America | USD | 6,346 | RUB | 377,700 | 06/21/17 | 217 | |
Bank of America | AUD | 3,100 | USD | 2,361 | 06/21/17 | 42 | |
Bank of America | CNY | 309,940 | USD | 44,462 | 06/21/17 | (252 | ) |
Bank of America | HKD | 1,050 | USD | 135 | 06/21/17 | — | |
Bank of America | KRW | 33,902,210 | USD | 29,690 | 06/21/17 | (122 | ) |
Bank of America | TWD | 611,760 | USD | 19,979 | 06/21/17 | (313 | ) |
Bank of Montreal | USD | 27,682 | AUD | 36,590 | 06/21/17 | (309 | ) |
Bank of Montreal | USD | 952 | CHF | 956 | 06/21/17 | 12 | |
Bank of Montreal | USD | 2,677 | EUR | 2,530 | 06/21/17 | 86 | |
Bank of Montreal | USD | 1,224 | MXN | 24,714 | 06/21/17 | 78 | |
Bank of Montreal | USD | 1,938 | ZAR | 25,774 | 06/21/17 | (25 | ) |
Bank of Montreal | AUD | 2,774 | USD | 2,120 | 05/15/17 | 43 | |
Bank of Montreal | AUD | 12,472 | USD | 9,529 | 06/21/17 | 199 | |
Bank of Montreal | CAD | 3,789 | USD | 2,841 | 05/15/17 | 65 | |
Bank of Montreal | CAD | 3,400 | USD | 2,550 | 06/21/17 | 57 | |
Bank of Montreal | CHF | 2,486 | USD | 2,491 | 05/15/17 | (10 | ) |
Bank of Montreal | EUR | 8,735 | USD | 9,357 | 05/15/17 | (164 | ) |
Bank of Montreal | GBP | 4,012 | USD | 5,019 | 05/15/17 | (179 | ) |
Bank of Montreal | GBP | 142 | USD | 175 | 06/21/17 | (9 | ) |
Bank of Montreal | HKD | 3,398 | USD | 438 | 06/21/17 | 1 | |
Bank of Montreal | JPY | 700,261 | USD | 6,270 | 05/15/17 | (15 | ) |
Bank of Montreal | JPY | 213,620 | USD | 1,882 | 06/21/17 | (38 | ) |
Bank of Montreal | SEK | 822 | USD | 91 | 06/21/17 | (2 | ) |
Bank of Montreal | SGD | 122 | USD | 86 | 06/21/17 | (1 | ) |
BNP Paribas | USD | 949 | CHF | 956 | 06/21/17 | 15 | |
BNP Paribas | USD | 2,670 | EUR | 2,530 | 06/21/17 | 92 | |
BNP Paribas | USD | 1,224 | MXN | 24,714 | 06/21/17 | 78 | |
BNP Paribas | USD | 1,934 | ZAR | 25,774 | 06/21/17 | (22 | ) |
BNP Paribas | AUD | 12,472 | USD | 9,441 | 06/21/17 | 110 | |
BNP Paribas | CAD | 3,400 | USD | 2,544 | 06/21/17 | 51 | |
BNP Paribas | GBP | 142 | USD | 175 | 06/21/17 | (9 | ) |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 45
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
BNP Paribas | HKD | 3,398 | USD | 438 | 06/21/17 | 1 | |
BNP Paribas | JPY | 213,620 | USD | 1,875 | 06/21/17 | (45 | ) |
BNP Paribas | SEK | 822 | USD | 91 | 06/21/17 | (2 | ) |
BNP Paribas | SGD | 122 | USD | 86 | 06/21/17 | (1 | ) |
Citigroup | USD | 2,066 | AUD | 2,769 | 05/15/17 | 7 | |
Citigroup | USD | 2,668 | CAD | 3,640 | 05/15/17 | (2 | ) |
Citigroup | USD | 2,495 | CHF | 2,472 | 05/15/17 | (8 | ) |
Citigroup | USD | 9,676 | EUR | 8,859 | 05/15/17 | (21 | ) |
Citigroup | USD | 5,056 | GBP | 3,914 | 05/15/17 | 15 | |
Citigroup | USD | 6,027 | JPY | 672,407 | 05/15/17 | 8 | |
Citigroup | AUD | 2,774 | USD | 2,120 | 05/15/17 | 43 | |
Citigroup | AUD | 2,769 | USD | 2,065 | 06/07/17 | (7 | ) |
Citigroup | CAD | 3,789 | USD | 2,841 | 05/15/17 | 65 | |
Citigroup | CAD | 3,640 | USD | 2,669 | 06/07/17 | 1 | |
Citigroup | CHF | 2,486 | USD | 2,491 | 05/15/17 | (10 | ) |
Citigroup | CHF | 2,472 | USD | 2,498 | 06/07/17 | 8 | |
Citigroup | EUR | 8,735 | USD | 9,350 | 05/15/17 | (171 | ) |
Citigroup | EUR | 8,859 | USD | 9,686 | 06/07/17 | 20 | |
Citigroup | GBP | 4,012 | USD | 5,012 | 05/15/17 | (186 | ) |
Citigroup | GBP | 3,914 | USD | 5,060 | 06/07/17 | (14 | ) |
Citigroup | JPY | 700,261 | USD | 6,274 | 05/15/17 | (11 | ) |
Citigroup | JPY | 672,407 | USD | 6,031 | 06/07/17 | (9 | ) |
Citigroup | ZAR | 166,710 | USD | 11,879 | 06/21/17 | (490 | ) |
Commonwealth Bank of Australia | USD | 952 | CHF | 956 | 06/21/17 | 11 | |
Commonwealth Bank of Australia | USD | 2,679 | EUR | 2,530 | 06/21/17 | 84 | |
Commonwealth Bank of Australia | USD | 1,223 | MXN | 24,714 | 06/21/17 | 79 | |
Commonwealth Bank of Australia | USD | 1,935 | ZAR | 25,774 | 06/21/17 | (22 | ) |
Commonwealth Bank of Australia | AUD | 12,472 | USD | 9,519 | 06/21/17 | 189 | |
Commonwealth Bank of Australia | CAD | 3,400 | USD | 2,550 | 06/21/17 | 57 | |
Commonwealth Bank of Australia | GBP | 142 | USD | 175 | 06/21/17 | (9 | ) |
Commonwealth Bank of Australia | HKD | 3,398 | USD | 438 | 06/21/17 | 1 | |
Commonwealth Bank of Australia | JPY | 213,620 | USD | 1,883 | 06/21/17 | (37 | ) |
Commonwealth Bank of Australia | SEK | 822 | USD | 91 | 06/21/17 | (2 | ) |
Commonwealth Bank of Australia | SGD | 122 | USD | 86 | 06/21/17 | (1 | ) |
HSBC | USD | 2,067 | AUD | 2,769 | 05/15/17 | 6 | |
HSBC | USD | 2,668 | CAD | 3,640 | 05/15/17 | (2 | ) |
HSBC | USD | 2,497 | CHF | 2,472 | 05/15/17 | (10 | ) |
HSBC | USD | 9,686 | EUR | 8,859 | 05/15/17 | (30 | ) |
HSBC | USD | 5,065 | GBP | 3,914 | 05/15/17 | 6 | |
HSBC | USD | 6,034 | JPY | 672,407 | 05/15/17 | 1 | |
HSBC | AUD | 2,769 | USD | 2,066 | 06/07/17 | (6 | ) |
HSBC | CAD | 3,640 | USD | 2,669 | 06/07/17 | 2 | |
HSBC | CHF | 2,472 | USD | 2,500 | 06/07/17 | 10 | |
HSBC | EUR | 8,859 | USD | 9,696 | 06/07/17 | 29 | |
HSBC | GBP | 3,914 | USD | 5,068 | 06/07/17 | (6 | ) |
HSBC | JPY | 672,407 | USD | 6,039 | 06/07/17 | (1 | ) |
Royal Bank of Canada | USD | 2,068 | AUD | 2,769 | 05/15/17 | 5 | |
Royal Bank of Canada | USD | 2,668 | CAD | 3,640 | 05/15/17 | (1 | ) |
Royal Bank of Canada | USD | 2,495 | CHF | 2,472 | 05/15/17 | (8 | ) |
Royal Bank of Canada | USD | 950 | CHF | 956 | 06/21/17 | 14 | |
Royal Bank of Canada | USD | 9,681 | EUR | 8,859 | 05/15/17 | (25 | ) |
Royal Bank of Canada | USD | 2,671 | EUR | 2,530 | 06/21/17 | 91 | |
Royal Bank of Canada | USD | 5,064 | GBP | 3,914 | 05/15/17 | 7 |
See accompanying notes which are an integral part of the financial statements.
46 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Royal Bank of Canada | USD | 6,030 | JPY | 672,407 | 05/15/17 | 4 | |
Royal Bank of Canada | USD | 1,224 | MXN | 24,714 | 06/21/17 | 78 | |
Royal Bank of Canada | USD | 1,935 | ZAR | 25,774 | 06/21/17 | (22 | ) |
Royal Bank of Canada | AUD | 2,774 | USD | 2,121 | 05/15/17 | 44 | |
Royal Bank of Canada | AUD | 2,769 | USD | 2,067 | 06/07/17 | (5 | ) |
Royal Bank of Canada | AUD | 12,472 | USD | 9,455 | 06/21/17 | 124 | |
Royal Bank of Canada | CAD | 3,789 | USD | 2,841 | 05/15/17 | 65 | |
Royal Bank of Canada | CAD | 3,640 | USD | 2,669 | 06/07/17 | 1 | |
Royal Bank of Canada | CAD | 3,400 | USD | 2,545 | 06/21/17 | 52 | |
Royal Bank of Canada | CHF | 2,486 | USD | 2,490 | 05/15/17 | (10 | ) |
Royal Bank of Canada | CHF | 2,472 | USD | 2,498 | 06/07/17 | 8 | |
Royal Bank of Canada | EUR | 8,735 | USD | 9,349 | 05/15/17 | (172 | ) |
Royal Bank of Canada | EUR | 8,859 | USD | 9,691 | 06/07/17 | 24 | |
Royal Bank of Canada | GBP | 4,012 | USD | 5,013 | 05/15/17 | (185 | ) |
Royal Bank of Canada | GBP | 3,914 | USD | 5,067 | 06/07/17 | (7 | ) |
Royal Bank of Canada | GBP | 142 | USD | 175 | 06/21/17 | (9 | ) |
Royal Bank of Canada | HKD | 3,398 | USD | 438 | 06/21/17 | 1 | |
Royal Bank of Canada | JPY | 700,261 | USD | 6,272 | 05/15/17 | (12 | ) |
Royal Bank of Canada | JPY | 672,407 | USD | 6,035 | 06/07/17 | (5 | ) |
Royal Bank of Canada | JPY | 213,620 | USD | 1,877 | 06/21/17 | (43 | ) |
Royal Bank of Canada | SEK | 822 | USD | 91 | 06/21/17 | (2 | ) |
Royal Bank of Canada | SGD | 122 | USD | 86 | 06/21/17 | (1 | ) |
Standard Chartered | USD | 952 | CHF | 956 | 06/21/17 | 12 | |
Standard Chartered | USD | 2,677 | EUR | 2,530 | 06/21/17 | 86 | |
Standard Chartered | USD | 1,223 | MXN | 24,714 | 06/21/17 | 79 | |
Standard Chartered | USD | 1,934 | ZAR | 25,774 | 06/21/17 | (22 | ) |
Standard Chartered | AUD | 12,472 | USD | 9,527 | 06/21/17 | 197 | |
Standard Chartered | CAD | 3,400 | USD | 2,550 | 06/21/17 | 57 | |
Standard Chartered | GBP | 142 | USD | 175 | 06/21/17 | (9 | ) |
Standard Chartered | HKD | 3,398 | USD | 438 | 06/21/17 | 1 | |
Standard Chartered | JPY | 213,620 | USD | 1,881 | 06/21/17 | (39 | ) |
Standard Chartered | SEK | 822 | USD | 91 | 06/21/17 | (2 | ) |
Standard Chartered | SGD | 122 | USD | 86 | 06/21/17 | (1 | ) |
State Street | USD | 16 | AUD | 21 | 05/15/17 | — | |
State Street | USD | 448 | CAD | 599 | 05/15/17 | (9 | ) |
State Street | USD | 56 | CHF | 56 | 05/15/17 | — | |
State Street | USD | 492 | GBP | 394 | 05/15/17 | 18 | |
State Street | USD | 58 | HKD | 454 | 05/15/17 | — | |
State Street | USD | 3,945 | HKD | 30,676 | 05/15/17 | (1 | ) |
State Street | USD | 1,005 | JPY | 111,414 | 05/15/17 | (5 | ) |
State Street | USD | 111 | SEK | 994 | 05/15/17 | 1 | |
State Street | USD | 4,097 | SEK | 36,134 | 05/15/17 | (15 | ) |
State Street | USD | 23 | SGD | 32 | 05/15/17 | — | |
State Street | USD | 1,421 | SGD | 1,984 | 05/15/17 | (1 | ) |
State Street | EUR | 496 | USD | 529 | 05/15/17 | (11 | ) |
State Street | HKD | 31,130 | USD | 4,010 | 05/15/17 | 7 | |
State Street | HKD | 30,676 | USD | 3,947 | 06/07/17 | 1 | |
State Street | RUB | 880,290 | USD | 15,347 | 06/21/17 | 51 | |
State Street | SEK | 37,128 | USD | 4,170 | 05/15/17 | (24 | ) |
State Street | SEK | 36,134 | USD | 4,101 | 06/07/17 | 15 | |
State Street | SGD | 2,016 | USD | 1,443 | 05/15/17 | — | |
State Street | SGD | 1,984 | USD | 1,421 | 06/07/17 | 1 | |
UBS | USD | 2,067 | AUD | 2,769 | 05/15/17 | 6 |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 47
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Amount | Amount | (Depreciation) | ||||||||||||||
Counterparty | Sold | Bought | Settlement Date | $ | ||||||||||||
UBS | USD | 2,668 | CAD | 3,640 | 05/15/17 | (2 | ) | |||||||||
UBS | USD | 2,493 | CHF | 2,472 | 05/15/17 | (6 | ) | |||||||||
UBS | USD | 9,673 | EUR | 8,859 | 05/15/17 | (17 | ) | |||||||||
UBS | USD | 5,059 | GBP | 3,914 | 05/15/17 | 12 | ||||||||||
UBS | USD | 6,025 | JPY | 672,407 | 05/15/17 | 10 | ||||||||||
UBS | AUD | 2,774 | USD | 2,120 | 05/15/17 | 43 | ||||||||||
UBS | AUD | 2,769 | USD | 2,066 | 06/07/17 | (6 | ) | |||||||||
UBS | CAD | 3,789 | USD | 2,841 | 05/15/17 | 64 | ||||||||||
UBS | CAD | 3,640 | USD | 2,669 | 06/07/17 | 2 | ||||||||||
UBS | CHF | 2,486 | USD | 2,490 | 05/15/17 | (11 | ) | |||||||||
UBS | CHF | 2,472 | USD | 2,496 | 06/07/17 | 6 | ||||||||||
UBS | EUR | 8,735 | USD | 9,348 | 05/15/17 | (172 | ) | |||||||||
UBS | EUR | 8,859 | USD | 9,684 | 06/07/17 | 18 | ||||||||||
UBS | GBP | 4,012 | USD | 5,014 | 05/15/17 | (185 | ) | |||||||||
UBS | GBP | 3,914 | USD | 5,063 | 06/07/17 | (11 | ) | |||||||||
UBS | JPY | 700,261 | USD | 6,271 | 05/15/17 | (14 | ) | |||||||||
UBS | JPY | 672,407 | USD | 6,030 | 06/07/17 | (11 | ) | |||||||||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (514 | ) | ||||||||||||||
Credit Default Swap Contracts | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Credit Indices | ||||||||||||||||
Fund (Pays)/ | ||||||||||||||||
Receives | Termination | Fair Value | ||||||||||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | |||||||||||
CDX Emerging Markets Index | Bank of America | USD | 62,700 | (1.000 | %) | 06/20/22 | 2,706 | |||||||||
CDX Investment Grade Index | Bank of America | USD | 72,000 | 1.000 | % | 06/20/22 | 1,321 | |||||||||
CDX NA High Yield Index | Goldman Sachs | USD | 82,600 | 5.000 | % | 06/20/22 | 6,550 | |||||||||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $9,736 | 10,577 | |||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||
Amounts in thousands | ||||||||||||||||
Fair Value | ||||||||||||||||
Practical | ||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||
Investments in Affiliated Funds | $ | 2,215,650 | $ | — | $ | — | $ | — | $ | 2,215,650 | 97.6 | |||||
Options Purchased | — | 6,507 | — | — | 6,507 | 0.3 | ||||||||||
Short-Term Investments | — | — | — | 11,232 | 11,232 | 0.5 | ||||||||||
Total Investments | 2,215,650 | 6,507 | — | 11,232 | 2,233,389 | 98.4 | ||||||||||
Other Assets and Liabilities, Net | 1.6 | |||||||||||||||
100.0 |
See accompanying notes which are an integral part of the financial statements.
48 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Presentation of Portfolio Holdings | |||||||||||||||||
Amounts in thousands | |||||||||||||||||
Fair Value | |||||||||||||||||
Practical | |||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | |||||||||||
Other Financial Instruments | |||||||||||||||||
Assets | |||||||||||||||||
Futures Contracts | 5,955 | — | — | — | 5,955 | 0.3 | |||||||||||
Foreign Currency Exchange Contracts | — | 3,140 | — | — | 3,140 | 0.1 | |||||||||||
Credit Default Swap Contracts | — | 10,577 | — | — | 10,577 | 0.5 | |||||||||||
' | |||||||||||||||||
Liabilities | |||||||||||||||||
Futures Contracts | (6,748 | ) | — | — | — | (6,748 | ) | (0.3 | ) | ||||||||
Options Written | — | (231 | ) | — | — | (231 | ) | (—)* | |||||||||
Foreign Currency Exchange Contracts | — | (3,654 | ) | — | — | (3,654 | ) | (0.2 | ) | ||||||||
Total Other Financial Instruments* | $ | (793 | ) | $ | 9,832 | $ | — | $ | — | $ | 9,039 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 49
Russell Investment Company
Balanced Strategy Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||||
Equity | Credit | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | ||||||||
Investments, at fair value* | $ | 6,507 | $ | — | $ | — | ||
Unrealized appreciation on foreign currency exchange contracts | — | — | 3,140 | |||||
Variation margin on futures contracts** | 5,955 | — | — | |||||
Credit default swap contracts, at fair value | — | 10,577 | — | |||||
Total | $ | 552 | $ | 10,577 | $ | 3,140 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||||||
Variation margin on futures contracts** | $ | 6,748 | $ | — | $ | — | ||
Unrealized depreciation on foreign currency exchange contracts | — | — | 3,654 | |||||
Options written, at fair value | 231 | — | — | |||||
Total | $ | 6,979 | $ | — | $ | 3,654 | ||
Foreign | ||||||||
Equity | Credit | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | ||||||||
Investments*** | $ | (127 | ) | $ | — | $ | — | |
Futures contracts | (15,735 | ) | — | — | ||||
Options written | 4,193 | — | — | |||||
Total return swap contracts | 257 | — | — | |||||
Credit default swap contracts | — | 6,169 | — | |||||
Foreign currency-related transactions**** | — | — | 9,987 | |||||
Total | $ | (11,412 | ) | $ | 6,169 | $ | 9,987 | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||||
Investments***** | $ | 2,095 | $ | — | $ | — | ||
Futures contracts | (1,081 | ) | — | — | ||||
Options written | 333 | — | — | |||||
Total return swap contracts | (984 | ) | — | — | ||||
Credit default swap contracts | — | 406 | — | |||||
Foreign currency-related transactions****** | — | — | (7,904 | ) | ||||
Total | $ | 363 | $ | 406 | $ | (7,904 | ) |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
50 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 6,507 | $ | — $ | 6,507 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 3,140 | — | 3,140 | |||||
Futures Contracts | Variation margin on futures contracts | 1,319 | — | 1,319 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 10,577 | — | 10,577 | |||||
Total Financial and Derivative Assets | 21,543 | — | 21,543 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (11,898 | ) | — | (11,898 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 9,645 | $ | — $ | 9,645 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of America | $ | 405 | $ | 405 | $ | — | $ — | ||
Bank of Montreal | 540 | 491 | — | 49 | |||||
BNP Paribas | 348 | 80 | — | 268 | |||||
Citigroup | 167 | 167 | — | — | |||||
Commonwealth Bank of Australia | 421 | 71 | — | 350 | |||||
HSBC | 53 | 53 | — | — | |||||
JPMorgan Chase | 6,506 | 231 | — | 6,275 | |||||
Royal Bank of Canada | 518 | 235 | — | 283 | |||||
Standard Chartered | 432 | 73 | — | 359 | |||||
State Street | 94 | 42 | — | 52 | |||||
UBS | 161 | 161 | — | — | |||||
Total | $ | 9,645 | $ | 2,009 | $ | — | $ 7,636 |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 51
Russell Investment Company
Balanced Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 411 | $ | — $ | 411 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 3,654 | — | 3,654 | |||||
Options Written Contracts | Options written, at fair value | 231 | — | 231 | |||||
Total Financial and Derivative Liabilities | 4,296 | — | 4,296 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (412 | ) | — | (412 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 3,884 | $ | — $ | 3,884 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||||
Gross Amounts Not Offset in | |||||||||||
the Statement of Assets and | |||||||||||
Liabilities | |||||||||||
Net Amounts | |||||||||||
of Liabilities | |||||||||||
Presented in | |||||||||||
the Statement | Financial and | ||||||||||
of Assets and | Derivative | Collateral | |||||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||||
Bank of America | $ | 687 | $ | 405 | $ | 282 | $ | — | |||
Bank of Montreal | 751 | 491 | — | 260 | |||||||
BNP Paribas | 80 | 80 | — | — | |||||||
Citigroup | 929 | 167 | — | 762 | |||||||
Commonwealth Bank of Australia | 71 | 71 | — | — | |||||||
HSBC | 54 | 53 | — | 1 | |||||||
JPMorgan Chase | 231 | 231 | — | — | |||||||
Royal Bank of Canada | 507 | 235 | — | 272 | |||||||
Standard Chartered | 73 | 73 | — | — | |||||||
State Street | 66 | 42 | — | 24 | |||||||
UBS | 435 | 161 | — | 274 | |||||||
Total | $ | 3,884 | $ | 2,009 | $ | 282 | $ | 1,593 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
52 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 2,053,708 |
Investments, at fair value(>) | 2,233,389 | |
Cash (restricted)(a)(b) | 42,790 | |
Unrealized appreciation on foreign currency exchange contracts | 3,140 | |
Receivables: | ||
Dividends from affiliated funds | 11 | |
Investments sold | 2,539 | |
Fund shares sold | 1,258 | |
Variation margin on futures contracts | 1,319 | |
Prepaid expenses | 23 | |
Credit default swap contracts, at fair value(+) | 10,577 | |
Total assets | 2,295,046 | |
Liabilities | ||
Payables: | ||
Due to custodian | 141 | |
Due to broker (c) | 16,724 | |
Fund shares redeemed | 3,338 | |
Accrued fees to affiliates | 1,324 | |
Other accrued expenses | 240 | |
Variation margin on futures contracts | 411 | |
Unrealized depreciation on foreign currency exchange contracts | 3,654 | |
Options written, at fair value(x) | 231 | |
Total liabilities | 26,063 | |
Net Assets | $ | 2,268,983 |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 53
Russell Investment Company
Balanced Strategy Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (10,643 | ) |
Accumulated net realized gain (loss) | 24,341 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 179,681 | ||
Futures contracts | (793 | ) | |
Options written | 1,422 | ||
Credit default swap contracts | 841 | ||
Foreign currency-related transactions | (514 | ) | |
Shares of beneficial interest | 2,011 | ||
Additional paid-in capital | 2,072,637 | ||
Net Assets | $ | 2,268,983 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 11.33 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 12.02 | |
Class A — Net assets | $ | 785,517,292 | |
Class A — Shares outstanding ($.01 par value) | 69,341,563 | ||
Net asset value per share: Class C(#) | $ | 11.12 | |
Class C — Net assets | $ | 852,303,674 | |
Class C — Shares outstanding ($.01 par value) | 76,614,711 | ||
Net asset value per share: Class E(#) | $ | 11.39 | |
Class E — Net assets | $ | 17,660,333 | |
Class E — Shares outstanding ($.01 par value) | 1,550,340 | ||
Net asset value per share: Class R1(#) | $ | 11.47 | |
Class R1 — Net assets | $ | 51,498,976 | |
Class R1 — Shares outstanding ($.01 par value) | 4,490,930 | ||
Net asset value per share: Class R4(#) | $ | 11.36 | |
Class R4 — Net assets | $ | 83,437,891 | |
Class R4 — Shares outstanding ($.01 par value) | 7,341,750 | ||
Net asset value per share: Class R5(#) | $ | 11.39 | |
Class R5 — Net assets | $ | 64,736,503 | |
Class R5 — Shares outstanding ($.01 par value) | 5,683,757 | ||
Net asset value per share: Class S(#) | $ | 11.46 | |
Class S — Net assets | $ | 413,828,467 | |
Class S — Shares outstanding ($.01 par value) | 36,102,555 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 2,226,882 | |
(x) Premiums received on options written | $ | 1,653 | |
(+) Credit default swap contracts - premiums paid (received) | $ | 9,736 | |
(a) Cash Collateral for Futures | $ | 26,700 | |
(b) Cash Collateral for Swaps | $ | 16,090 | |
(c) Due to Broker for Swaps | $ | 16,724 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
54 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 45,416 | |
Expenses | |||
Advisory fees | 2,356 | ||
Administrative fees | 501 | ||
Custodian fees | 38 | ||
Distribution fees - Class A | 984 | ||
Distribution fees - Class C | 3,267 | ||
Distribution fees - Class R5 | 87 | ||
Transfer agent fees - Class A | 788 | ||
Transfer agent fees - Class C | 871 | ||
Transfer agent fees - Class E | 20 | ||
Transfer agent fees - Class R1 | 113 | ||
Transfer agent fees - Class R4 | 91 | ||
Transfer agent fees - Class R5 | 70 | ||
Transfer agent fees - Class S | 403 | ||
Professional fees | 49 | ||
Registration fees | 70 | ||
Shareholder servicing fees - Class C | 1,089 | ||
Shareholder servicing fees - Class E | 25 | ||
Shareholder servicing fees - Class R4 | 114 | ||
Shareholder servicing fees - Class R5 | 87 | ||
Trustees’ fees | 43 | ||
Printing fees | 149 | ||
Miscellaneous | 12 | ||
Expenses before reductions | 11,227 | ||
Expense reductions | (2,883 | ) | |
Net expenses | 8,344 | ||
Net investment income (loss) | 37,072 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 7,912 | ||
Futures contracts | (15,735 | ) | |
Options written | 4,193 | ||
Total return swap contracts | 257 | ||
Credit default swap contracts | 6,169 | ||
Foreign currency-related transactions | 9,993 | ||
Capital gain distributions from affiliated funds | 33,124 | ||
Net realized gain (loss) | 45,913 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 81,378 | ||
Futures contracts | (1,081 | ) | |
Options written | 333 | ||
Total return swap contracts | (984 | ) | |
Credit default swap contracts | 406 | ||
Foreign currency-related transactions | (7,904 | ) | |
Net change in unrealized appreciation (depreciation) | 72,148 | ||
Net realized and unrealized gain (loss) | 118,061 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 155,133 |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 55
Russell Investment Company
Balanced Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 37,072 | $ | 52,832 | ||
Net realized gain (loss) | 45,913 | 114,568 | ||||
Net change in unrealized appreciation (depreciation) | 72,148 | (70,380 | ) | |||
Net increase (decrease) in net assets from operations | 155,133 | 97,020 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (18,014 | ) | (19,536 | ) | ||
Class C | (17,095 | ) | (16,534 | ) | ||
Class E | (493 | ) | (654 | ) | ||
Class R1 | (2,827 | ) | (4,092 | ) | ||
Class R4 | (1,988 | ) | (3,065 | ) | ||
Class R5 | (1,471 | ) | (1,657 | ) | ||
Class S | (9,281 | ) | (10,331 | ) | ||
From net realized gain | ||||||
Class A | (39,167 | ) | (64,986 | ) | ||
Class C | (44,503 | ) | (78,692 | ) | ||
Class E | (1,128 | ) | (2,454 | ) | ||
Class R1 | (5,901 | ) | (13,573 | ) | ||
Class R4 | (4,462 | ) | (10,810 | ) | ||
Class R5 | (3,458 | ) | (6,598 | ) | ||
Class S | (19,550 | ) | (33,009 | ) | ||
Net decrease in net assets from distributions | (169,338 | ) | (265,991 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (176,451 | ) | (343,648 | ) | ||
Total Net Increase (Decrease) in Net Assets | (190,656 | ) | (512,619 | ) | ||
Net Assets | ||||||
Beginning of period | 2,459,639 | 2,972,258 | ||||
End of period | $ | 2,268,983 | $ | 2,459,639 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (10,643 | ) | $ | 3,454 |
See accompanying notes which are an integral part of the financial statements.
56 Balanced Strategy Fund
Russell Investment Company
Balanced Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 2,035 | $ | 22,712 | 4,512 | $ | 50,186 | ||||||
Proceeds from reinvestment of distributions | 5,204 | 56,469 | 7,696 | 83,491 | ||||||||
Payments for shares redeemed | (8,724 | ) | (97,674 | ) | (16,733 | ) | (185,377 | ) | ||||
Net increase (decrease) | (1,485 | ) | (18,493 | ) | (4,525 | ) | (51,700 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 2,780 | 30,538 | 5,536 | 60,370 | ||||||||
Proceeds from reinvestment of distributions | 5,742 | 61,233 | 8,878 | 94,675 | ||||||||
Payments for shares redeemed | (13,096 | ) | (143,925 | ) | (24,801 | ) | (270,937 | ) | ||||
Net increase (decrease) | (4,574 | ) | (52,154 | ) | (10,387 | ) | (115,892 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 117 | 1,326 | 225 | 2,508 | ||||||||
Proceeds from reinvestment of distributions | 147 | 1,600 | 281 | 3,061 | ||||||||
Payments for shares redeemed | (781 | ) | (8,681 | ) | (1,505 | ) | (16,702 | ) | ||||
Net increase (decrease) | (517 | ) | (5,755 | ) | (999 | ) | (11,133 | ) | ||||
Class R1 | ||||||||||||
Proceeds from shares sold | 766 | 8,661 | 2,239 | 25,025 | ||||||||
Proceeds from reinvestment of distributions | 794 | 8,725 | 1,612 | 17,662 | ||||||||
Payments for shares redeemed | (7,823 | ) | (88,786 | ) | (9,577 | ) | (106,218 | ) | ||||
Net increase (decrease) | (6,263 | ) | (71,400 | ) | (5,726 | ) | (63,531 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 441 | 4,946 | 936 | 10,414 | ||||||||
Proceeds from reinvestment of distributions | 592 | 6,449 | 1,276 | 13,875 | ||||||||
Payments for shares redeemed | (3,777 | ) | (42,869 | ) | (4,844 | ) | (53,911 | ) | ||||
Net increase (decrease) | (2,744 | ) | (31,474 | ) | (2,632 | ) | (29,622 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 257 | 2,907 | 927 | 10,234 | ||||||||
Proceeds from reinvestment of distributions | 452 | 4,929 | 758 | 8,255 | ||||||||
Payments for shares redeemed | (1,397 | ) | (15,768 | ) | (3,689 | ) | (41,337 | ) | ||||
Net increase (decrease) | (688 | ) | (7,932 | ) | (2,004 | ) | (22,848 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 3,851 | 43,455 | 6,405 | 71,543 | ||||||||
Proceeds from reinvestment of distributions | 2,583 | 28,368 | 3,911 | 42,872 | ||||||||
Payments for shares redeemed | (5,394 | ) | (61,066 | ) | (14,582 | ) | (163,337 | ) | ||||
Net increase (decrease) | 1,040 | 10,757 | (4,266 | ) | (48,922 | ) | ||||||
Total increase (decrease) | (15,231 | ) | $ | (176,451 | ) | (30,539 | ) | $ | (343,648 | ) |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 57
Russell Investment Company
Balanced Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period. | |||||||||||||||||
$ | |||||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 11.41 | .20 | .55 | .75 | (.26 | ) | (.57 | ) | |||||||||
October 31, 2016 | 12.07 | .25 | .23 | .48 | (.26 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.43 | .34 | (.37 | ) | (.03 | ) | (.33 | ) | — | ||||||||
October 31, 2014 | 11.89 | .21 | .53 | .74 | (.20 | ) | — | ||||||||||
October 31, 2013 | 10.78 | .22 | 1.10 | 1.32 | (.21 | ) | — | ||||||||||
October 31, 2012 | 10.20 | .22 | .57 | .79 | (.21 | ) | — | ||||||||||
Class C | |||||||||||||||||
April 30, 2017* | 11.22 | .16 | .53 | .69 | (.22 | ) | (.57 | ) | |||||||||
October 31, 2016 | 11.89 | .16 | .23 | .39 | (.18 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.26 | .24 | (.36 | ) | (.12 | ) | (.25 | ) | — | ||||||||
October 31, 2014 | 11.76 | .12 | .52 | .64 | (.14 | ) | — | ||||||||||
October 31, 2013 | 10.69 | .14 | 1.09 | 1.23 | (.16 | ) | — | ||||||||||
October 31, 2012 | 10.11 | .14 | .58 | .72 | (.14 | ) | — | ||||||||||
Class E | |||||||||||||||||
April 30, 2017* | 11.47 | .22 | .52 | .74 | (.25 | ) | (.57 | ) | |||||||||
October 31, 2016 | 12.13 | .26 | .21 | .47 | (.25 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.48 | .36 | (.40 | ) | (.04 | ) | (.31 | ) | — | ||||||||
October 31, 2014 | 11.94 | .22 | .52 | .74 | (.20 | ) | — | ||||||||||
October 31, 2013 | 10.82 | .25 | 1.08 | 1.33 | (.21 | ) | — | ||||||||||
October 31, 2012 | 10.23 | .22 | .58 | .80 | (.21 | ) | — | ||||||||||
Class R1 | |||||||||||||||||
April 30, 2017* | 11.54 | .24 | .53 | .77 | (.27 | ) | (.57 | ) | |||||||||
October 31, 2016 | 12.20 | .30 | .20 | .50 | (.28 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.55 | .38 | (.37 | ) | .01 | (.36 | ) | — | |||||||||
October 31, 2014 | 12.00 | .27 | .52 | .79 | (.24 | ) | — | ||||||||||
October 31, 2013 | 10.86 | .27 | 1.12 | 1.39 | (.25 | ) | — | ||||||||||
October 31, 2012 | 10.28 | .25 | .59 | .84 | (.26 | ) | — | ||||||||||
Class R4(1) | |||||||||||||||||
April 30, 2017* | 11.44 | .20 | .55 | .75 | (.26 | ) | (.57 | ) | |||||||||
October 31, 2016 | 12.10 | .25 | .22 | .47 | (.25 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.46 | .35 | (.38 | ) | (.03 | ) | (.33 | ) | — | ||||||||
October 31, 2014 | 11.92 | .24 | .51 | .75 | (.21 | ) | — | ||||||||||
October 31, 2013 | 10.80 | .24 | 1.11 | 1.35 | (.23 | ) | — | ||||||||||
October 31, 2012 | 10.21 | .23 | .59 | .82 | (.23 | ) | — | ||||||||||
Class R5(2) | |||||||||||||||||
April 30, 2017* | 11.47 | .19 | .54 | .73 | (.24 | ) | (.57 | ) | |||||||||
October 31, 2016 | 12.13 | .22 | .22 | .44 | (.22 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.48 | .33 | (.39 | ) | (.06 | ) | (.29 | ) | — | ||||||||
October 31, 2014 | 11.94 | .22 | .51 | .73 | (.19 | ) | — | ||||||||||
October 31, 2013 | 10.83 | .23 | 1.08 | 1.31 | (.20 | ) | — | ||||||||||
October 31, 2012 | 10.23 | .24 | .56 | .80 | (.20 | ) | — | ||||||||||
Class S | |||||||||||||||||
April 30, 2017* | 11.54 | .21 | .55 | .76 | (.27 | ) | (.57 | ) | |||||||||
October 31, 2016 | 12.19 | .27 | .24 | .51 | (.28 | ) | (.88 | ) | |||||||||
October 31, 2015 | 12.55 | .36 | (.37 | ) | (.01 | ) | (.35 | ) | — | ||||||||
October 31, 2014 | 12.00 | .25 | .52 | .77 | (.22 | ) | — | ||||||||||
October 31, 2013 | 10.87 | .25 | 1.12 | 1.37 | (.24 | ) | — | ||||||||||
October 31, 2012 | 10.28 | .24 | .59 | .83 | (.24 | ) | — | ||||||||||
See accompanying notes which are an integral part of the financial statements.
58 Balanced Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.83 | ) | 11.33 | 7.02 | 785,517 | .72 | .45 | 1.80 | 11 | |||||||||
(1.14 | ) | 11.41 | 4.56 | 808,160 | .72 | .44 | 2.24 | 16 | |||||||||
(.33 | ) | 12.07 | (.31 | ) | 909,827 | .72 | .48 | 2.75 | 35 | ||||||||
(.20 | ) | 12.43 | 6.30 | 1,058,976 | .72 | .56 | 1.74 | 19 | |||||||||
(.21 | ) | 11.89 | 12.47 | 1,093,788 | .71 | .57 | 1.99 | 11 | |||||||||
(.21 | ) | 10.78 | 7.94 | 1,068,990 | .70 | .56 | 2.07 | 20 | |||||||||
(.79 | ) | 11.12 | 6.64 | 852,304 | 1.47 | 1.20 | 1.42 | 11 | |||||||||
(1.06 | ) | 11.22 | 3.80 | 910,762 | 1.47 | 1.19 | 1.47 | 16 | |||||||||
(.25 | ) | 11.89 | (1.05 | ) | 1,089,189 | 1.47 | 1.23 | 1.95 | 35 | ||||||||
(.14 | ) | 12.26 | 5.51 | 1,252,253 | 1.47 | 1.31 | .98 | 19 | |||||||||
(.16 | ) | 11.76 | 11.60 | 1,300,173 | 1.46 | 1.32 | 1.22 | 11 | |||||||||
(.14 | ) | 10.69 | 7.22 | 1,283,125 | 1.45 | 1.31 | 1.32 | 20 | |||||||||
(.82 | ) | 11.39 | 6.91 | 17,660 | .72 | .57 | 1.97 | 11 | |||||||||
(1.13 | ) | 11.47 | 4.38 | 23,708 | .72 | .57 | 2.35 | 16 | |||||||||
(.31 | ) | 12.13 | (.32 | ) | 37,184 | .72 | .56 | 2.93 | 35 | ||||||||
(.20 | ) | 12.48 | 6.26 | 64,210 | .72 | .56 | 1.81 | 19 | |||||||||
(.21 | ) | 11.94 | 12.50 | 88,974 | .71 | .57 | 2.22 | 11 | |||||||||
(.21 | ) | 10.82 | 7.98 | 129,301 | .70 | .56 | 2.16 | 20 | |||||||||
(.84 | ) | 11.47 | 7.13 | 51,499 | .47 | .26 | 2.11 | 11 | |||||||||
(1.16 | ) | 11.54 | 4.70 | 124,091 | .47 | .26 | 2.68 | 16 | |||||||||
(.36 | ) | 12.20 | .04 | 200,991 | .47 | .23 | 3.03 | 35 | |||||||||
(.24 | ) | 12.55 | 6.63 | 265,650 | .47 | .17 | 2.24 | 19 | |||||||||
(.25 | ) | 12.00 | 13.00 | 306,020 | .46 | .17 | 2.36 | 11 | |||||||||
(.26 | ) | 10.86 | 8.36 | 279,572 | .45 | .14 | 2.34 | 20 | |||||||||
(.83 | ) | 11.36 | 7.03 | 83,438 | .72 | .51 | 1.78 | 11 | |||||||||
(1.13 | ) | 11.44 | 4.46 | 115,400 | .72 | .51 | 2.25 | 16 | |||||||||
(.33 | ) | 12.10 | (.31 | ) | 153,931 | .72 | .48 | 2.86 | 35 | ||||||||
(.21 | ) | 12.46 | 6.39 | 206,600 | .72 | .42 | 1.99 | 19 | |||||||||
(.23 | ) | 11.92 | 12.67 | 276,656 | .71 | .42 | 2.15 | 11 | |||||||||
(.23 | ) | 10.80 | 8.23 | 267,734 | .70 | .39 | 2.24 | 20 | |||||||||
(.81 | ) | 11.39 | 6.80 | 64,737 | .97 | .76 | 1.66 | 11 | |||||||||
(1.10 | ) | 11.47 | 4.18 | 73,055 | .97 | .76 | 2.00 | 16 | |||||||||
(.29 | ) | 12.13 | (.48 | ) | 101,555 | .97 | .73 | 2.71 | 35 | ||||||||
(.19 | ) | 12.48 | 6.17 | 144,430 | .97 | .67 | 1.82 | 19 | |||||||||
(.20 | ) | 11.94 | 12.32 | 212,516 | .96 | .67 | 2.01 | 11 | |||||||||
(.20 | ) | 10.83 | 7.95 | 261,491 | .95 | .64 | 2.34 | 20 | |||||||||
(.84 | ) | 11.46 | 7.10 | 413,828 | .47 | .32 | 1.87 | 11 | |||||||||
(1.16 | ) | 11.54 | 4.73 | 404,463 | .47 | .32 | 2.43 | 16 | |||||||||
(.35 | ) | 12.19 | (.13 | ) | 479,581 | .47 | .31 | 2.93 | 35 | ||||||||
(.22 | ) | 12.55 | 6.52 | 566,395 | .47 | .31 | 2.03 | 19 | |||||||||
(.24 | ) | 12.00 | 12.77 | 614,376 | .46 | .32 | 2.20 | 11 | |||||||||
(.24 | ) | 10.87 | 8.26 | 548,418 | .45 | .31 | 2.30 | 20 |
See accompanying notes which are an integral part of the financial statements.
Balanced Strategy Fund 59
Russell Investment Company
Balanced Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 88,441 |
Administration fees | 79,986 | |
Distribution fees | 701,403 | |
Shareholder servicing fees | 209,936 | |
Transfer agent fees | 230,786 | |
Trustee fees | 13,889 | |
$ | 1,324,441 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:
Fair Value, | Change in | ||||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||||||
Commodity Strategies Fund | $ | 78,162 | $ | 1,146 | $ | 6,778 | $ | (1,159 | ) $ | 715 | $ | 72,086 | $ | — | $ | — | |||||
Global Infrastructure Fund | 72,525 | 3,246 | 12,066 | 1,142 | 1,548 | 66,395 | 1,226 | 2,020 | |||||||||||||
Global Real Estate Securities Fund | 23,447 | 28,216 | 8,275 | (159 | ) | (1,370 | ) | 41,859 | 1,555 | 2,646 | |||||||||||
Select U.S. Equity Fund | 188,349 | 75,522 | 61,352 | 1,842 | 21,769 | 226,130 | 1,483 | — | |||||||||||||
U.S. Defensive Equity Fund | 48,589 | 3,506 | 10,049 | 2,643 | (1,135 | ) | 43,554 | 254 | 3,251 | ||||||||||||
U.S. Dynamic Equity Fund | 169,694 | 7,531 | 103,948 | 10,472 | 4,853 | 88,602 | 1,109 | 6,414 | |||||||||||||
U.S. Small Cap Equity Fund | 142,666 | 2,904 | 28,165 | 534 | 22,220 | 140,159 | 961 | 290 | |||||||||||||
Global Opportunistic Credit Fund | 242,915 | 7,592 | 26,449 | (729 | ) | 3,060 | 226,389 | 6,386 | — | ||||||||||||
Strategic Bond Fund | 559,742 | 19,848 | 121,279 | (2,645 | ) | (22,543) | 433,123 | 16,680 | 3,147 | ||||||||||||
Unconstrained Total Return Fund | 97,339 | 75,215 | 13,193 | (104 | ) | (458) | 158,799 | 2,228 | 233 | ||||||||||||
Emerging Markets Fund | 169,564 | 2,991 | 31,754 | (2,483 | ) | 17,347 | 155,665 | 2,027 | — | ||||||||||||
Global Equity Fund | 243,040 | 27,410 | 37,583 | 2,233 | 7,824 | 242,924 | 3,817 | 15,123 | |||||||||||||
Select International Equity Fund | 243,459 | 5,565 | 39,729 | (3,572 | ) | 22,367 | 228,090 | 5,565 | — | ||||||||||||
Multi-Strategy Income Fund | 97,221 | 2,635 | 11,094 | 20 | 3,093 | 91,875 | 2,044 | — | |||||||||||||
U.S. Cash Management Fund | 41,666 | 121,703 | 152,134 | 4 | (7 | ) | 11,232 | 81 | — | ||||||||||||
$ | 2,418,378 | $ | 385,030 | $ | 663,848 | $ | 8,039 | $ | 79,283 | $ | 2,226,882 | $ | 45,416 | $ | 33,124 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 2,072,389,904 | |||
Unrealized Appreciation | $ | 201,772,441 | |||
Unrealized Depreciation | (40,773,067 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 160,999,374 |
See accompanying notes which are an integral part of the financial statements.
60 Balanced Strategy Fund
Russell Investment Company
Growth Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | |||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | ||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | |||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,091.90 | $ | 1,021.97 | |
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 2.96 | $ | 2.86 | |
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.57% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
Performance” provides information about actual account values | waivers and/or reimbursements, expenses would have been higher. | |||||
and actual expenses. You may use the information in this column, | ||||||
together with the amount you invested, to estimate the expenses | Hypothetical | |||||
that you paid over the period. Simply divide your account value by | Performance (5% | |||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Actual | return before | ||||
Class C | Performance | expenses) | ||||
= 8.6), then multiply the result by the number in the first column | Beginning Account Value | |||||
in the row entitled “Expenses Paid During Period” to estimate | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
the expenses you paid on your account during this period. | Ending Account Value | |||||
April 30, 2017 | $ | 1,088.00 | $ | 1,018.25 | ||
Hypothetical Example for Comparison Purposes | Expenses Paid During Period* | $ | 6.83 | $ | 6.61 | |
The information in the table under the heading “Hypothetical | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 1.32% | ||||||
Performance (5% return before expenses)” provides information | (representing the six month period annualized), multiplied by the average | |||||
about hypothetical account values and hypothetical expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
based on the Fund’s actual expense ratio and an assumed rate of | year period). May reflect amounts waived and/or reimbursed. Without any | |||||
return of 5% per year before expenses, which is not the Fund’s | waivers and/or reimbursements, expenses would have been higher. | |||||
actual return. The hypothetical account values and expenses | Hypothetical | |||||
may not be used to estimate the actual ending account balance or | Performance (5% | |||||
expenses you paid for the period. You may use this information | Actual | return before | ||||
to compare the ongoing costs of investing in the Fund and other | Class E | Performance | expenses) | |||
Beginning Account Value | ||||||
funds. To do so, compare this 5% hypothetical example with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
5% hypothetical examples that appear in the shareholder reports | Ending Account Value | |||||
of other funds. | April 30, 2017 | $ | 1,091.50 | $ | 1,021.97 | |
Expenses Paid During Period* | $ | 2.96 | $ | 2.86 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.57% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
Growth Strategy Fund 61
Russell Investment Company
Growth Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R1 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,093.40 | $ | 1,023.46 | ||
Expenses Paid During Period* | $ | 1.40 | $ | 1.35 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.27% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R4 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,091.80 | $ | 1,022.22 | ||
Expenses Paid During Period* | $ | 2.70 | $ | 2.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.52% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R5 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,090.40 | $ | 1,020.98 | ||
Expenses Paid During Period* | $ | 3.99 | $ | 3.86 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.77% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,093.20 | $ | 1,023.21 | ||
Expenses Paid During Period* | $ | 1.66 | $ | 1.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.32% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. Without any | ||||||
waivers and/or reimbursements, expenses would have been higher. |
62 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 97.6% | ||||
Alternative - 8.5% | ||||
Commodity Strategies Fund Class Y | 8,168,778 | 44,602 | ||
Global Infrastructure Fund Class Y | 3,652,085 | 43,423 | ||
Global Real Estate Securities Fund Class Y | 1,197,510 | 40,380 | ||
128,405 | ||||
Domestic Equities - 33.9% | ||||
Select U.S. Equity Fund Class Y | 17,842,258 | 220,173 | ||
U.S. Defensive Equity Fund Class Y | 1,451,085 | 73,672 | ||
U.S. Dynamic Equity Fund Class Y | 6,996,049 | 76,537 | ||
U.S. Small Cap Equity Fund Class Y | 4,462,858 | 143,659 | ||
514,041 | ||||
Fixed Income - 21.1% | ||||
Global Opportunistic Credit Fund Class Y | 12,051,013 | 118,341 | ||
Strategic Bond Fund Class Y | 7,164,538 | 75,801 | ||
Unconstrained Total Return Fund Class Y | 12,697,112 | 126,463 | ||
320,605 | ||||
International Equities - 34.1% | ||||
Emerging Markets Fund Class Y | 7,182,308 | 131,149 | ||
Global Equity Fund Class Y | 17,480,363 | 188,788 | ||
Select International Equity Fund Class Y | 21,348,279 | 198,539 | ||
518,476 | ||||
Total Investments in Affiliated Funds | ||||
(cost $1,355,124) | 1,481,527 | |||
Options Purchased - 0.1% | ||||
(Number of Contracts) | ||||
EURO STOXX 50 Index | ||||
May 2017 3,303.33 Call (4,957) | EUR 16,375 (ÿ) | 1,235 | ||
S&P 500 Index | ||||
Jun 2017 2,395.40 Call (16,022) | USD 38,379 (ÿ) | 375 | ||
Total Options Purchased | ||||
(cost $1,157) | 1,610 | |||
Short-Term Investments - 0.7% | ||||
U.S. Cash Management Fund | 10,265,668 | (8) | 10,268 | |
Total Short-Term Investments | ||||
(cost $10,267) | 10,268 | |||
Total Investments 98.4% | ||||
(identified cost $1,366,548) | 1,493,405 | |||
Other Assets and Liabilities, Net - 1.6% | 25,052 | |||
Net Assets - 100.0% | 1,518,457 |
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 63
Russell Investment Company
Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Amsterdam Index Futures | 111 | EUR | 11,470 | 05/17 | 280 | ||
CAC40 Euro Index Futures | 636 | EUR | 33,167 | 05/17 | 1,892 | ||
DAX Index Futures | 99 | EUR | 30,857 | 06/17 | 1,212 | ||
EURO STOXX 50 Index Futures | 28 | EUR | 982 | 06/17 | 54 | ||
FTSE/MIB Index Futures | 70 | EUR | 7,102 | 06/17 | 458 | ||
IBEX 35 Index Futures | 105 | EUR | 11,264 | 05/17 | 591 | ||
OMXS30 Index Futures | 446 | SEK | 72,163 | 05/17 | 355 | ||
Russell 2000 Mini Index Futures | 22 | USD | 1,538 | 06/17 | 43 | ||
S&P 500 E-Mini Index Futures | 77 | USD | 9,165 | 06/17 | 63 | ||
United States 2 Year Treasury Note Futures | 73 | USD | 15,812 | 06/17 | 23 | ||
United States 5 Year Treasury Note Futures | 260 | USD | 30,786 | 06/17 | 215 | ||
United States 10 Year Treasury Note Futures | 173 | USD | 21,749 | 06/17 | 211 | ||
United States Long Bond Futures | 12 | USD | 1,836 | 06/17 | 34 | ||
Short Positions | |||||||
Dow Jones U.S. Real Estate Index Futures | 400 | USD | 12,464 | 06/17 | (541 | ) | |
FTSE 100 Index Futures | 74 | GBP | 5,302 | 06/17 | 116 | ||
Hang Seng Index Futures | 6 | HKD | 7,368 | 05/17 | (12 | ) | |
MSCI Emerging Markets Mini Index Futures | 119 | USD | 5,825 | 06/17 | (305 | ) | |
MSCI Singapore Index Futures | 7 | SGD | 243 | 05/17 | (2 | ) | |
Russell 1000 Mini Index Futures | 122 | USD | 8,053 | 06/17 | (64 | ) | |
S&P 500 E-Mini Index Futures | 1,189 | USD | 141,520 | 06/17 | (1,108 | ) | |
S&P Mid 400 E-Mini Index Futures | 65 | USD | 11,245 | 06/17 | (152 | ) | |
S&P/TSX 60 Index Futures | 177 | CAD | 32,455 | 06/17 | (124 | ) | |
SPI 200 Index Futures | 201 | AUD | 29,713 | 06/17 | (630 | ) | |
TOPIX Index Futures | 142 | JPY | 2,172,600 | 06/17 | 136 | ||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 2,745 |
Options Written
Amounts in thousands (except contract amounts)
Number of | Strike | Notional | Expiration | Fair Value | |||||||||
Call/Put | Contracts | Price | Amount | Date | $ | ||||||||
EURO STOXX 50 Index | Put | 4,957 | 2,939.96 | EUR | 14,573 | 05/19/17 | (4 | ) | |||||
S&P 500 Index | Put | 16,022 | 2,134.52 | USD | 34,199 | 06/16/17 | (53 | ) | |||||
Total Liability for Options Written (premiums received $409) | (57 | ) | |||||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | |||||||||||||
Number of | Premiums | ||||||||||||
Contracts | Received | ||||||||||||
Outstanding October 31, 2016 | 141,886 | $ | 2,016 | ||||||||||
Opened | 487,619 | 893 | |||||||||||
Closed | (536,100 | ) | (1,522 | ) | |||||||||
Expired | (72,426 | ) | (978 | ) | |||||||||
Outstanding April 30, 2017 | 20,979 | $ | 409 |
See accompanying notes which are an integral part of the financial statements.
64 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 5,045 | EUR | 4,700 | 06/21/17 | 87 | |
Bank of America | USD | 3,173 | RUB | 188,850 | 06/21/17 | 108 | |
Bank of America | CNY | 214,100 | USD | 30,713 | 06/21/17 | (174 | ) |
Bank of America | KRW | 27,737,920 | USD | 24,292 | 06/21/17 | (100 | ) |
Bank of America | TWD | 501,900 | USD | 16,391 | 06/21/17 | (256 | ) |
Bank of Montreal | USD | 14,042 | AUD | 18,560 | 06/21/17 | (156 | ) |
Bank of Montreal | USD | 1,380 | CHF | 1,386 | 06/21/17 | 17 | |
Bank of Montreal | USD | 3,022 | EUR | 2,856 | 06/21/17 | 97 | |
Bank of Montreal | USD | 463 | GBP | 376 | 06/21/17 | 25 | |
Bank of Montreal | USD | 727 | JPY | 82,574 | 06/21/17 | 15 | |
Bank of Montreal | USD | 565 | MXN | 11,406 | 06/21/17 | 36 | |
Bank of Montreal | USD | 66 | SEK | 594 | 06/21/17 | 1 | |
Bank of Montreal | USD | 969 | ZAR | 12,888 | 06/21/17 | (13 | ) |
Bank of Montreal | AUD | 1,771 | USD | 1,354 | 05/15/17 | 28 | |
Bank of Montreal | AUD | 14,274 | USD | 10,906 | 06/21/17 | 227 | |
Bank of Montreal | CAD | 2,420 | USD | 1,814 | 05/15/17 | 41 | |
Bank of Montreal | CAD | 794 | USD | 595 | 06/21/17 | 13 | |
Bank of Montreal | CHF | 1,588 | USD | 1,590 | 05/15/17 | (6 | ) |
Bank of Montreal | EUR | 5,578 | USD | 5,974 | 05/15/17 | (105 | ) |
Bank of Montreal | GBP | 2,562 | USD | 3,205 | 05/15/17 | (114 | ) |
Bank of Montreal | HKD | 900 | USD | 116 | 06/21/17 | — | |
Bank of Montreal | JPY | 447,116 | USD | 4,004 | 05/15/17 | (9 | ) |
Bank of Montreal | SGD | 40 | USD | 28 | 06/21/17 | — | |
BNP Paribas | USD | 1,375 | CHF | 1,386 | 06/21/17 | 22 | |
BNP Paribas | USD | 3,014 | EUR | 2,856 | 06/21/17 | 104 | |
BNP Paribas | USD | 463 | GBP | 376 | 06/21/17 | 25 | |
BNP Paribas | USD | 725 | JPY | 82,574 | 06/21/17 | 18 | |
BNP Paribas | USD | 565 | MXN | 11,406 | 06/21/17 | 36 | |
BNP Paribas | USD | 66 | SEK | 594 | 06/21/17 | 1 | |
BNP Paribas | USD | 967 | ZAR | 12,888 | 06/21/17 | (11 | ) |
BNP Paribas | AUD | 14,274 | USD | 10,805 | 06/21/17 | 126 | |
BNP Paribas | CAD | 794 | USD | 594 | 06/21/17 | 12 | |
BNP Paribas | HKD | 900 | USD | 116 | 06/21/17 | — | |
BNP Paribas | SGD | 40 | USD | 28 | 06/21/17 | — | |
Citigroup | USD | 1,320 | AUD | 1,769 | 05/15/17 | 4 | |
Citigroup | USD | 1,705 | CAD | 2,325 | 05/15/17 | (1 | ) |
Citigroup | USD | 1,594 | CHF | 1,580 | 05/15/17 | (5 | ) |
Citigroup | USD | 6,182 | EUR | 5,660 | 05/15/17 | (13 | ) |
Citigroup | USD | 3,230 | GBP | 2,501 | 05/15/17 | 9 | |
Citigroup | USD | 3,850 | JPY | 429,600 | 05/15/17 | 5 | |
Citigroup | AUD | 1,771 | USD | 1,354 | 05/15/17 | 28 | |
Citigroup | AUD | 1,769 | USD | 1,319 | 06/07/17 | (4 | ) |
Citigroup | CAD | 2,420 | USD | 1,814 | 05/15/17 | 41 | |
Citigroup | CAD | 2,325 | USD | 1,705 | 06/07/17 | 1 | |
Citigroup | CHF | 1,588 | USD | 1,591 | 05/15/17 | (6 | ) |
Citigroup | CHF | 1,580 | USD | 1,596 | 06/07/17 | 5 | |
Citigroup | EUR | 5,578 | USD | 5,970 | 05/15/17 | (109 | ) |
Citigroup | EUR | 5,660 | USD | 6,188 | 06/07/17 | 13 | |
Citigroup | GBP | 2,562 | USD | 3,200 | 05/15/17 | (119 | ) |
Citigroup | GBP | 2,501 | USD | 3,233 | 06/07/17 | (9 | ) |
Citigroup | JPY | 447,116 | USD | 4,006 | 05/15/17 | (7 | ) |
Citigroup | JPY | 429,600 | USD | 3,853 | 06/07/17 | (6 | ) |
Citigroup | ZAR | 73,320 | USD | 5,225 | 06/21/17 | (216 | ) |
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 65
Russell Investment Company
Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Commonwealth Bank of Australia | USD | 1,381 | CHF | 1,386 | 06/21/17 | 16 | |
Commonwealth Bank of Australia | USD | 3,024 | EUR | 2,856 | 06/21/17 | 95 | |
Commonwealth Bank of Australia | USD | 463 | GBP | 376 | 06/21/17 | 25 | |
Commonwealth Bank of Australia | USD | 728 | JPY | 82,574 | 06/21/17 | 14 | |
Commonwealth Bank of Australia | USD | 564 | MXN | 11,406 | 06/21/17 | 37 | |
Commonwealth Bank of Australia | USD | 66 | SEK | 594 | 06/21/17 | 1 | |
Commonwealth Bank of Australia | USD | 967 | ZAR | 12,888 | 06/21/17 | (11 | ) |
Commonwealth Bank of Australia | AUD | 14,274 | USD | 10,894 | 06/21/17 | 216 | |
Commonwealth Bank of Australia | CAD | 794 | USD | 595 | 06/21/17 | 13 | |
Commonwealth Bank of Australia | HKD | 900 | USD | 116 | 06/21/17 | — | |
Commonwealth Bank of Australia | SGD | 40 | USD | 28 | 06/21/17 | — | |
HSBC | USD | 1,321 | AUD | 1,769 | 05/15/17 | 4 | |
HSBC | USD | 1,705 | CAD | 2,325 | 05/15/17 | (1 | ) |
HSBC | USD | 1,595 | CHF | 1,580 | 05/15/17 | (6 | ) |
HSBC | USD | 6,188 | EUR | 5,660 | 05/15/17 | (20 | ) |
HSBC | USD | 3,236 | GBP | 2,501 | 05/15/17 | 4 | |
HSBC | USD | 3,855 | JPY | 429,600 | 05/15/17 | 1 | |
HSBC | AUD | 1,769 | USD | 1,320 | 06/07/17 | (4 | ) |
HSBC | CAD | 2,325 | USD | 1,705 | 06/07/17 | 1 | |
HSBC | CHF | 1,580 | USD | 1,597 | 06/07/17 | 6 | |
HSBC | EUR | 5,660 | USD | 6,194 | 06/07/17 | 19 | |
HSBC | GBP | 2,501 | USD | 3,238 | 06/07/17 | (4 | ) |
HSBC | JPY | 429,600 | USD | 3,858 | 06/07/17 | (1 | ) |
Royal Bank of Canada | USD | 1,321 | AUD | 1,769 | 05/15/17 | 3 | |
Royal Bank of Canada | USD | 1,705 | CAD | 2,325 | 05/15/17 | (1 | ) |
Royal Bank of Canada | USD | 1,594 | CHF | 1,580 | 05/15/17 | (5 | ) |
Royal Bank of Canada | USD | 1,377 | CHF | 1,386 | 06/21/17 | 20 | |
Royal Bank of Canada | USD | 6,185 | EUR | 5,660 | 05/15/17 | (16 | ) |
Royal Bank of Canada | USD | 3,016 | EUR | 2,856 | 06/21/17 | 103 | |
Royal Bank of Canada | USD | 3,235 | GBP | 2,501 | 05/15/17 | 4 | |
Royal Bank of Canada | USD | 463 | GBP | 376 | 06/21/17 | 25 | |
Royal Bank of Canada | USD | 3,853 | JPY | 429,600 | 05/15/17 | 3 | |
Royal Bank of Canada | USD | 726 | JPY | 82,574 | 06/21/17 | 16 | |
Royal Bank of Canada | USD | 565 | MXN | 11,406 | 06/21/17 | 36 | |
Royal Bank of Canada | USD | 66 | SEK | 594 | 06/21/17 | 1 | |
Royal Bank of Canada | USD | 967 | ZAR | 12,888 | 06/21/17 | (11 | ) |
Royal Bank of Canada | AUD | 1,771 | USD | 1,354 | 05/15/17 | 28 | |
Royal Bank of Canada | AUD | 1,769 | USD | 1,321 | 06/07/17 | (3 | ) |
Royal Bank of Canada | AUD | 14,274 | USD | 10,821 | 06/21/17 | 143 | |
Royal Bank of Canada | CAD | 2,420 | USD | 1,814 | 05/15/17 | 41 | |
Royal Bank of Canada | CAD | 2,325 | USD | 1,705 | 06/07/17 | 1 | |
Royal Bank of Canada | CAD | 794 | USD | 594 | 06/21/17 | 12 | |
Royal Bank of Canada | CHF | 1,588 | USD | 1,590 | 05/15/17 | (7 | ) |
Royal Bank of Canada | CHF | 1,580 | USD | 1,596 | 06/07/17 | 5 | |
Royal Bank of Canada | EUR | 5,578 | USD | 5,969 | 05/15/17 | (110 | ) |
Royal Bank of Canada | EUR | 5,660 | USD | 6,191 | 06/07/17 | 15 | |
Royal Bank of Canada | GBP | 2,562 | USD | 3,201 | 05/15/17 | (117 | ) |
Royal Bank of Canada | GBP | 2,501 | USD | 3,237 | 06/07/17 | (4 | ) |
Royal Bank of Canada | HKD | 900 | USD | 116 | 06/21/17 | — | |
Royal Bank of Canada | JPY | 447,116 | USD | 4,005 | 05/15/17 | (8 | ) |
Royal Bank of Canada | JPY | 429,600 | USD | 3,856 | 06/07/17 | (3 | ) |
Royal Bank of Canada | SGD | 40 | USD | 28 | 06/21/17 | — | |
Standard Chartered | USD | 1,380 | CHF | 1,386 | 06/21/17 | 17 |
See accompanying notes which are an integral part of the financial statements.
66 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Standard Chartered | USD | 3,022 | EUR | 2,856 | 06/21/17 | 97 | |
Standard Chartered | USD | 463 | GBP | 376 | 06/21/17 | 25 | |
Standard Chartered | USD | 727 | JPY | 82,574 | 06/21/17 | 15 | |
Standard Chartered | USD | 564 | MXN | 11,406 | 06/21/17 | 37 | |
Standard Chartered | USD | 66 | SEK | 594 | 06/21/17 | 1 | |
Standard Chartered | USD | 967 | ZAR | 12,888 | 06/21/17 | (11 | ) |
Standard Chartered | AUD | 14,274 | USD | 10,903 | 06/21/17 | 225 | |
Standard Chartered | CAD | 794 | USD | 595 | 06/21/17 | 13 | |
Standard Chartered | HKD | 900 | USD | 116 | 06/21/17 | — | |
Standard Chartered | SGD | 40 | USD | 28 | 06/21/17 | — | |
State Street | USD | 7 | AUD | 9 | 05/15/17 | — | |
State Street | USD | 282 | CAD | 377 | 05/15/17 | (5 | ) |
State Street | USD | 32 | CHF | 32 | 05/15/17 | — | |
State Street | USD | 306 | GBP | 245 | 05/15/17 | 11 | |
State Street | USD | 36 | HKD | 278 | 05/15/17 | — | |
State Street | USD | 2,521 | HKD | 19,599 | 05/15/17 | — | |
State Street | USD | 632 | JPY | 70,065 | 05/15/17 | (3 | ) |
State Street | USD | 69 | SEK | 621 | 05/15/17 | 1 | |
State Street | USD | 2,617 | SEK | 23,086 | 05/15/17 | (9 | ) |
State Street | USD | 14 | SGD | 20 | 05/15/17 | — | |
State Street | USD | 908 | SGD | 1,267 | 05/15/17 | (1 | ) |
State Street | EUR | 330 | USD | 352 | 05/15/17 | (8 | ) |
State Street | HKD | 19,877 | USD | 2,560 | 05/15/17 | 4 | |
State Street | HKD | 19,599 | USD | 2,522 | 06/07/17 | — | |
State Street | RUB | 492,180 | USD | 8,581 | 06/21/17 | 29 | |
State Street | SEK | 23,707 | USD | 2,663 | 05/15/17 | (16 | ) |
State Street | SEK | 23,086 | USD | 2,620 | 06/07/17 | 9 | |
State Street | SGD | 1,287 | USD | 921 | 05/15/17 | — | |
State Street | SGD | 1,267 | USD | 908 | 06/07/17 | 1 | |
UBS | USD | 1,320 | AUD | 1,769 | 05/15/17 | 4 | |
UBS | USD | 1,705 | CAD | 2,325 | 05/15/17 | (1 | ) |
UBS | USD | 1,593 | CHF | 1,580 | 05/15/17 | (4 | ) |
UBS | USD | 6,180 | EUR | 5,660 | 05/15/17 | (11 | ) |
UBS | USD | 3,232 | GBP | 2,501 | 05/15/17 | 7 | |
UBS | USD | 3,849 | JPY | 429,600 | 05/15/17 | 6 | |
UBS | AUD | 1,771 | USD | 1,354 | 05/15/17 | 28 | |
UBS | AUD | 1,769 | USD | 1,320 | 06/07/17 | (4 | ) |
UBS | CAD | 2,420 | USD | 1,814 | 05/15/17 | 41 | |
UBS | CAD | 2,325 | USD | 1,705 | 06/07/17 | 1 | |
UBS | CHF | 1,588 | USD | 1,590 | 05/15/17 | (7 | ) |
UBS | CHF | 1,580 | USD | 1,595 | 06/07/17 | 4 | |
UBS | EUR | 5,578 | USD | 5,969 | 05/15/17 | (110 | ) |
UBS | EUR | 5,660 | USD | 6,187 | 06/07/17 | 11 | |
UBS | GBP | 2,562 | USD | 3,201 | 05/15/17 | (117 | ) |
UBS | GBP | 2,501 | USD | 3,235 | 06/07/17 | (7 | ) |
UBS | JPY | 447,116 | USD | 4,004 | 05/15/17 | (9 | ) |
UBS | JPY | 429,600 | USD | 3,852 | 06/07/17 | (7 | ) |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 539 |
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 67
Russell Investment Company
Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Credit Default Swap Contracts | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Credit Indices | ||||||||||||||||||
Fund (Pays)/ | ||||||||||||||||||
Receives | Termination | Fair Value | ||||||||||||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | |||||||||||||
CDX Investment Grade Index | Bank of America | USD | 70,400 | 1.000 | % | 06/20/22 | 1,291 | |||||||||||
CDX NA High Yield Index | Bank of America | USD | 2,900 | 5.000 | % | 06/20/22 | (216 | ) | ||||||||||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $1,116 | 1,075 | |||||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Investments in Affiliated Funds | $ | 1,481,527 | $ | — | $ | — | $ | — | $ | 1,481,527 | 97.6 | |||||||
Options Purchased | — | 1,610 | — | — | 1,610 | 0.1 | ||||||||||||
Short-Term Investments | — | — | — | 10,268 | 10,268 | 0.7 | ||||||||||||
Total Investments | 1,481,527 | 1,610 | — | 10,268 | 1,493,405 | 98.4 | ||||||||||||
Other Assets and Liabilities, Net | 1.6 | |||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 5,683 | — | — | — | 5,683 | 0.4 | ||||||||||||
Foreign Currency Exchange Contracts | — | 2,640 | — | — | 2,640 | 0.2 | ||||||||||||
Credit Default Swap Contracts | — | 1,291 | — | — | 1,291 | 0.1 | ||||||||||||
' | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (2,938 | ) | — | — | — | (2,938 | ) | (0.2 | ) | |||||||||
Options Written | — | (57 | ) | — | — | (57 | ) | (—)* | ||||||||||
Foreign Currency Exchange Contracts | — | (2,101 | ) | — | — | (2,101 | ) | (0.1 | ) | |||||||||
Credit Default Swap Contracts | — | (216 | ) | — | — | (216 | ) | (—)* | ||||||||||
Total Other Financial Instruments** | $ | 2,745 | $ | 1,557 | $ | — | $ | — | $ | 4,302 |
* Less than 0.5% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the
fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.
For a description of the Levels, see note 2 in the Notes to Quarterly Report.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to Quarterly
Report.
See accompanying notes which are an integral part of the financial statements.
68 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | |||||||||||
Equity | Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | |||||||
Location: Statement of Assets and Liabilities - Assets | |||||||||||
Investments, at fair value* | $ | 1,610 | $ | — | $ | — | $ | — | |||
Unrealized appreciation on foreign currency exchange contracts | — | — | 2,640 | — | |||||||
Variation margin on futures contracts** | 5,200 | — | — | 483 | |||||||
Credit default swap contracts, at fair value | — | 1,291 | — | — | |||||||
Total | $ | 6,810 | $ | 1,291 | $ | 2,640 | $ | 483 | |||
Location: Statement of Assets and Liabilities - Liabilities | |||||||||||
Variation margin on futures contracts** | $ | 2,938 | $ | — | $ | — | $ | — | |||
Unrealized depreciation on foreign currency exchange contracts | — | — | 2,101 | — | |||||||
Options written, at fair value | 57 | — | — | — | |||||||
Credit default swap contracts, at fair value | — | 216 | — | — | |||||||
Total | $ | 2,995 | $ | 216 | $ | 2,101 | $ | — | |||
Foreign | |||||||||||
Equity | Credit | Currency | Interest Rate | ||||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | Contracts | |||||||
Location: Statement of Operations - Net realized gain (loss) | |||||||||||
Investments*** | $ | (2,843 | ) | $ | — | $ | — | $ | — | ||
Futures contracts | (5,210 | ) | — | — | 367 | ||||||
Options written | 2,467 | — | — | — | |||||||
Total return swap contracts | 2,664 | — | — | — | |||||||
Credit default swap contracts | — | 3,634 | — | — | |||||||
Foreign currency-related transactions**** | — | — | 5,371 | — | |||||||
Total | $ | (2,922 | ) | $ | 3,634 | $ | 5,371 | $ | 367 | ||
Location: Statement of Operations - Net change in unrealized appreciation | |||||||||||
(depreciation) | |||||||||||
Investments***** | $ | 732 | $ | — | $ | — | $ | — | |||
Futures contracts | 1,064 | — | — | 483 | |||||||
Options written | (589 | ) | — | — | — | ||||||
Total return swap contracts | (2,510 | ) | — | — | — | ||||||
Credit default swap contracts | — | (321 | ) | — | — | ||||||
Foreign currency-related transactions****** | — | — | (4,573 | ) | — | ||||||
Total | $ | (1,303 | ) | $ | (321 | ) | $ | (4,573 | ) | $ | 483 |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 69
Russell Investment Company
Growth Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 1,610 | $ | — $ | 1,610 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 2,640 | — | 2,640 | |||||
Futures Contracts | Variation margin on futures contracts | 896 | — | 896 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 1,291 | — | 1,291 | |||||
Total Financial and Derivative Assets | 6,437 | — | 6,437 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (2,183 | ) | — | (2,183 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 4,254 | $ | — $ | 4,254 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of America | $ | 195 | $ | 195 | $ | — | $ — | ||
Bank of Montreal | 501 | 238 | — | 263 | |||||
BNP Paribas | 344 | 11 | — | 333 | |||||
Citigroup | 107 | 107 | — | — | |||||
Commonwealth Bank of Australia | 417 | 11 | — | 406 | |||||
HSBC | 34 | 34 | — | — | |||||
JPMorgan Chase | 1,610 | 57 | — | 1,553 | |||||
Royal Bank of Canada | 457 | 112 | — | 345 | |||||
Standard Chartered | 430 | 11 | — | 419 | |||||
State Street | 56 | 27 | — | 29 | |||||
UBS | 103 | 103 | — | — | |||||
Total | $ | 4,254 | $ | 906 | $ | — | $ 3,348 |
See accompanying notes which are an integral part of the financial statements.
70 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 204 | $ | — $ | 204 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 2,101 | — | 2,101 | |||||
Options Written Contracts | Options written, at fair value | 57 | — | 57 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 216 | — | 216 | |||||
Total Financial and Derivative Liabilities | 2,578 | — | 2,578 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (417 | ) | — | (417 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 2,161 | $ | — $ | 2,161 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 530 | $ | 195 | $ | — | $ 335 | ||
Bank of Montreal | 404 | 238 | — | 166 | |||||
BNP Paribas | 11 | 11 | — | — | |||||
Citigroup | 496 | 107 | — | 389 | |||||
Commonwealth Bank of Australia | 11 | 11 | — | — | |||||
HSBC | 35 | 34 | — | 1 | |||||
JPMorgan Chase | 57 | 57 | — | — | |||||
Royal Bank of Canada | 286 | 112 | — | 174 | |||||
Standard Chartered | 11 | 11 | — | — | |||||
State Street | 42 | 27 | — | 15 | |||||
UBS | 278 | 103 | — | 175 | |||||
Total | $ | 2,161 | $ | 906 | $ | — | $ 1,255 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 71
Russell Investment Company
Growth Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 1,366,548 |
Investments, at fair value(>) | 1,493,405 | |
Cash (restricted)(a)(b) | 22,913 | |
Unrealized appreciation on foreign currency exchange contracts | 2,640 | |
Receivables: | ||
Dividends from affiliated funds | 8 | |
Investments sold | 567 | |
Fund shares sold | 2,023 | |
Variation margin on futures contracts | 896 | |
Prepaid expenses | 16 | |
Credit default swap contracts, at fair value(+) | 1,291 | |
Total assets | 1,523,759 | |
Liabilities | ||
Payables: | ||
Due to custodian | 13 | |
Fund shares redeemed | 1,581 | |
Accrued fees to affiliates | 951 | |
Other accrued expenses | 179 | |
Variation margin on futures contracts | 204 | |
Unrealized depreciation on foreign currency exchange contracts | 2,101 | |
Options written, at fair value(x) | 57 | |
Credit default swap contracts, at fair value(+) | 216 | |
Total liabilities | 5,302 | |
Net Assets | $ | 1,518,457 |
See accompanying notes which are an integral part of the financial statements.
72 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (5,149 | ) |
Accumulated net realized gain (loss) | 31,245 | ||
Unrealized appreciation (depreciation) on: | |||
Investments | 126,857 | ||
Futures contracts | 2,745 | ||
Options written | 352 | ||
Credit default swap contracts | (41 | ) | |
Foreign currency-related transactions | 539 | ||
Shares of beneficial interest | 1,236 | ||
Additional paid-in capital | 1,360,673 | ||
Net Assets | $ | 1,518,457 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 12.39 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 13.15 | |
Class A — Net assets | $ | 586,755,697 | |
Class A — Shares outstanding ($.01 par value) | 47,361,597 | ||
Net asset value per share: Class C(#) | $ | 12.02 | |
Class C — Net assets | $ | 527,908,107 | |
Class C — Shares outstanding ($.01 par value) | 43,928,568 | ||
Net asset value per share: Class E(#) | $ | 12.44 | |
Class E — Net assets | $ | 12,829,018 | |
Class E — Shares outstanding ($.01 par value) | 1,031,062 | ||
Net asset value per share: Class R1(#) | $ | 12.53 | |
Class R1 — Net assets | $ | 25,243,825 | |
Class R1 — Shares outstanding ($.01 par value) | 2,014,456 | ||
Net asset value per share: Class R4(#) | $ | 12.43 | |
Class R4 — Net assets | $ | 77,783,124 | |
Class R4 — Shares outstanding ($.01 par value) | 6,256,027 | ||
Net asset value per share: Class R5(#) | $ | 12.44 | |
Class R5 — Net assets | $ | 53,088,279 | |
Class R5 — Shares outstanding ($.01 par value) | 4,267,327 | ||
Net asset value per share: Class S(#) | $ | 12.53 | |
Class S — Net assets | $ | 234,849,113 | |
Class S — Shares outstanding ($.01 par value) | 18,741,275 | ||
Amounts in thousands | |||
(x) Premiums received on options written | $ | 409 | |
(+) Credit default swap contracts - premiums paid (received) | $ | 1,116 | |
(>) Investments in affiliated funds | $ | 1,491,795 | |
(a) Cash Collateral for Futures | $ | 20,500 | |
(b) Cash Collateral for Swaps | $ | 2,413 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 73
Russell Investment Company
Growth Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 25,240 | |
Expenses | |||
Advisory fees | 1,564 | ||
Administrative fees | 332 | ||
Custodian fees | 37 | ||
Distribution fees - Class A | 726 | ||
Distribution fees - Class C | 2,021 | ||
Distribution fees - Class R5 | 66 | ||
Transfer agent fees - Class A | 580 | ||
Transfer agent fees - Class C | 539 | ||
Transfer agent fees - Class E | 19 | ||
Transfer agent fees - Class R1 | 69 | ||
Transfer agent fees - Class R4 | 80 | ||
Transfer agent fees - Class R5 | 53 | ||
Transfer agent fees - Class S | 224 | ||
Professional fees | 37 | ||
Registration fees | 62 | ||
Shareholder servicing fees - Class C | 674 | ||
Shareholder servicing fees - Class E | 23 | ||
Shareholder servicing fees - Class R4 | 100 | ||
Shareholder servicing fees - Class R5 | 66 | ||
Trustees’ fees | 28 | ||
Printing fees | 110 | ||
Miscellaneous | 10 | ||
Expenses before reductions | 7,420 | ||
Expense reductions | (1,292 | ) | |
Net expenses | 6,128 | ||
Net investment income (loss) | 19,112 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 1,285 | ||
Futures contracts | (4,843 | ) | |
Options written | 2,467 | ||
Total return swap contracts | 2,664 | ||
Credit default swap contracts | 3,634 | ||
Foreign currency-related transactions | 5,373 | ||
Capital gain distributions from affiliated funds | 27,806 | ||
Net realized gain (loss) | 38,386 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 85,057 | ||
Futures contracts | 1,547 | ||
Options written | (589 | ) | |
Total return swap contracts | (2,510 | ) | |
Credit default swap contracts | (321 | ) | |
Foreign currency-related transactions | (4,573 | ) | |
Net change in unrealized appreciation (depreciation) | 78,611 | ||
Net realized and unrealized gain (loss) | 116,997 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 136,109 |
See accompanying notes which are an integral part of the financial statements.
74 Growth Strategy Fund
Russell Investment Company
Growth Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 19,112 | $ | 27,698 | ||
Net realized gain (loss) | 38,386 | 49,378 | ||||
Net change in unrealized appreciation (depreciation) | 78,611 | (29,870 | ) | |||
Net increase (decrease) in net assets from operations | 136,109 | 47,206 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (11,554 | ) | (10,831 | ) | ||
Class C | (9,118 | ) | (6,672 | ) | ||
Class E | (409 | ) | (402 | ) | ||
Class R1 | (1,566 | ) | (1,744 | ) | ||
Class R4 | (1,612 | ) | (1,737 | ) | ||
Class R5 | (1,000 | ) | (913 | ) | ||
Class S | (4,680 | ) | (4,740 | ) | ||
From net realized gain | ||||||
Class A | (14,910 | ) | — | |||
Class C | (14,443 | ) | — | |||
Class E | (546 | ) | — | |||
Class R1 | (1,891 | ) | — | |||
Class R4 | (2,081 | ) | — | |||
Class R5 | (1,364 | ) | — | |||
Class S | (5,623 | ) | — | |||
Net decrease in net assets from distributions | (70,797 | ) | (27,039 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (140,790 | ) | (314,636 | ) | ||
Total Net Increase (Decrease) in Net Assets | (75,478 | ) | (294,469 | ) | ||
Net Assets | ||||||
Beginning of period | 1,593,935 | 1,888,404 | ||||
End of period | $ | 1,518,457 | $ | 1,593,935 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (5,149 | ) | $ | 5,678 |
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 75
Russell Investment Company
Growth Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 1,671 | $ | 20,245 | 2,440 | $ | 27,663 | ||||||
Proceeds from reinvestment of distributions | 2,230 | 26,336 | 946 | 10,783 | ||||||||
Payments for shares redeemed | (5,670 | ) | (68,450 | ) | (11,157 | ) | (127,604 | ) | ||||
Net increase (decrease) | (1,769 | ) | (21,869 | ) | (7,771 | ) | (89,158 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 1,432 | 16,802 | 3,280 | 36,157 | ||||||||
Proceeds from reinvestment of distributions | 2,042 | 23,371 | 599 | 6,614 | ||||||||
Payments for shares redeemed | (7,559 | ) | (88,510 | ) | (13,306 | ) | 147,933 | |||||
Net increase (decrease) | (4,085 | ) | (48,337 | ) | (9,427 | ) | 105,162 | |||||
Class E | ||||||||||||
Proceeds from shares sold | 60 | 725 | 208 | 2,362 | ||||||||
Proceeds from reinvestment of distributions | 80 | 949 | 35 | 398 | ||||||||
Payments for shares redeemed | (887 | ) | (10,793 | ) | (670 | ) | (7,487 | ) | ||||
Net increase (decrease) | (747 | ) | (9,119 | ) | (427 | ) | (4,727 | ) | ||||
Class R1 | ||||||||||||
Proceeds from shares sold | 325 | 3,962 | 1,224 | 14,117 | ||||||||
Proceeds from reinvestment of distributions | 289 | 3,451 | 151 | 1,742 | ||||||||
Payments for shares redeemed | (5,006 | ) | (61,601 | ) | (3,405 | ) | (39,322 | ) | ||||
Net increase (decrease) | (4,392 | ) | (54,188 | ) | (2,030 | ) | (23,463 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 291 | 3,529 | 626 | 7,132 | ||||||||
Proceeds from reinvestment of distributions | 312 | 3,693 | 152 | 1,736 | ||||||||
Payments for shares redeemed | (1,436 | ) | (17,349 | ) | (3,151 | ) | (36,290 | ) | ||||
Net increase (decrease) | (833 | ) | (10,127 | ) | (2,373 | ) | (27,422 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 281 | 3,405 | 622 | 7,074 | ||||||||
Proceeds from reinvestment of distributions | 199 | 2,364 | 80 | 913 | ||||||||
Payments for shares redeemed | (814 | ) | (9,854 | ) | (1,535 | ) | (17,463 | ) | ||||
Net increase (decrease) | (334 | ) | (4,085 | ) | (833 | ) | (9,476 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 2,102 | 25,629 | 3,097 | 35,740 | ||||||||
Proceeds from reinvestment of distributions | 855 | 10,219 | 407 | 4,689 | ||||||||
Payments for shares redeemed | (2,374 | ) | (28,913 | ) | (8,295 | ) | (95,657 | ) | ||||
Net increase (decrease) | 583 | 6,935 | (4,791 | ) | (55,228 | ) | ||||||
Total increase (decrease) | (11,577 | ) | $ | (140,790 | ) | (27,652 | ) | $ | 314,636 |
See accompanying notes which are an integral part of the financial statements.
76 Growth Strategy Fund
(This page intentionally left blank)
Russell Investment Company
Growth Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 11.88 | .16 | .90 | 1.06 | (.24 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.68 | .21 | .19 | .40 | (.20 | ) | — | |||||||||
October 31, 2015 | 12.14 | .30 | (.48 | ) | (.18 | ) | (.25 | ) | — | |||||||
October 31, 2014 | 11.60 | .23 | .52 | .75 | (.21 | ) | — | |||||||||
October 31, 2013 | 10.11 | .17 | 1.48 | 1.65 | (.16 | ) | — | |||||||||
October 31, 2012 | 9.56 | .17 | .55 | .72 | (.17 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 11.54 | .11 | .88 | .99 | (.20 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.36 | .11 | .19 | .30 | (.12 | ) | — | |||||||||
October 31, 2015 | 11.85 | .20 | (.46 | ) | (.26 | ) | (.21 | ) | — | |||||||
October 31, 2014 | 11.36 | .13 | .52 | .65 | (.16 | ) | — | |||||||||
October 31, 2013 | 9.93 | .08 | 1.46 | 1.54 | (.11 | ) | — | |||||||||
October 31, 2012 | 9.41 | .10 | .53 | .63 | (.11 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 11.93 | .18 | .88 | 1.06 | (.24 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.73 | .23 | .17 | .40 | (.20 | ) | — | |||||||||
October 31, 2015 | 12.19 | .35 | (.53 | ) | (.18 | ) | (.25 | ) | — | |||||||
October 31, 2014 | 11.64 | .24 | .52 | .76 | (.21 | ) | — | |||||||||
October 31, 2013 | 10.15 | .18 | 1.47 | 1.65 | (.16 | ) | — | |||||||||
October 31, 2012 | 9.59 | .18 | .54 | .72 | (.16 | ) | — | |||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 12.02 | .20 | .88 | 1.08 | (.26 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.81 | .26 | .18 | .44 | (.23 | ) | — | |||||||||
October 31, 2015 | 12.27 | .36 | (.50 | ) | (.14 | ) | (.29 | ) | — | |||||||
October 31, 2014 | 11.72 | .29 | .52 | .81 | (.26 | ) | — | |||||||||
October 31, 2013 | 10.21 | .20 | 1.50 | 1.70 | (.19 | ) | — | |||||||||
October 31, 2012 | 9.65 | .21 | .56 | .77 | (.21 | ) | — | |||||||||
Class R4(1) | ||||||||||||||||
April 30, 2017* | 11.92 | .17 | .90 | 1.07 | (.25 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.72 | .23 | .17 | .40 | (.20 | ) | — | |||||||||
October 31, 2015 | 12.18 | .33 | (.50 | ) | (.17 | ) | (.26 | ) | — | |||||||
October 31, 2014 | 11.64 | .26 | .50 | .76 | (.22 | ) | — | |||||||||
October 31, 2013 | 10.14 | .19 | 1.48 | 1.67 | (.17 | ) | — | |||||||||
October 31, 2012 | 9.59 | .19 | .54 | .73 | (.18 | ) | — | |||||||||
Class R5(2) | ||||||||||||||||
April 30, 2017* | 11.93 | .13 | .92 | 1.05 | (.23 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.73 | .19 | .19 | .38 | (.18 | ) | — | |||||||||
October 31, 2015 | 12.19 | .31 | (.50 | ) | (.19 | ) | (.25 | ) | — | |||||||
October 31, 2014 | 11.65 | .24 | .49 | .73 | (.19 | ) | — | |||||||||
October 31, 2013 | 10.16 | .17 | 1.47 | 1.64 | (.15 | ) | — | |||||||||
October 31, 2012 | 9.59 | .20 | .52 | .72 | (.15 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 12.02 | .18 | .90 | 1.08 | (.26 | ) | (.31 | ) | ||||||||
October 31, 2016 | 11.81 | .25 | .19 | .44 | (.23 | ) | — | |||||||||
October 31, 2015 | 12.27 | .34 | (.49 | ) | (.15 | ) | (.28 | ) | — | |||||||
October 31, 2014 | 11.72 | .26 | .53 | .79 | (.24 | ) | — | |||||||||
October 31, 2013 | 10.21 | .19 | 1.50 | 1.69 | (.18 | ) | — | |||||||||
October 31, 2012 | 9.65 | .20 | .55 | .75 | (.19 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
78 Growth Strategy Fund
% | % | % | ||||||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||||||
$ | $ | Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||||
Return of | Total | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||||
Capital | Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||||
— | (.55 | ) | 12.39 | 9.19 | 586,756 | .73 | .57 | 1.32 | 12 | |||||||||||
— | (.20 | ) | 11.88 | 3.50 | 583,888 | .72 | .57 | 1.85 | 14 | |||||||||||
(.03 | ) | (.28 | ) | 11.68 | (1.50 | ) | 664,817 | .72 | .56 | 2.51 | 39 | |||||||||
— | (.21 | ) | 12.14 | 6.52 | 759,361 | .72 | .56 | 1.91 | 22 | |||||||||||
— | (.16 | ) | 11.60 | 16.55 | 768,352 | .71 | .57 | 1.53 | 11 | |||||||||||
— | (.17 | ) | 10.11 | 7.64 | 713,412 | .70 | .56 | 1.79 | 23 | |||||||||||
— | (.51 | ) | 12.02 | 8.80 | 527,908 | 1.48 | 1.32 | .91 | 12 | |||||||||||
— | (.12 | ) | 11.54 | 2.69 | 554,255 | 1.47 | 1.32 | 1.04 | 14 | |||||||||||
(.02 | ) | (.23 | ) | 11.36 | (2.31 | ) | 652,442 | 1.47 | 1.31 | 1.68 | 39 | |||||||||
— | (.16 | ) | 11.85 | 5.77 | 761,495 | 1.47 | 1.31 | 1.12 | 22 | |||||||||||
— | (.11 | ) | 11.36 | 15.62 | 763,893 | 1.46 | 1.32 | .76 | 11 | |||||||||||
— | (.11 | ) | 9.93 | 6.84 | 704,704 | 1.45 | 1.31 | 1.05 | 23 | |||||||||||
— | (.55 | ) | 12.44 | 9.15 | 12,829 | .73 | .57 | 1.51 | 12 | |||||||||||
— | (.20 | ) | 11.93 | 3.48 | 21,217 | .72 | .57 | 1.96 | 14 | |||||||||||
(.03 | ) | (.28 | ) | 11.73 | (1.51 | ) | 25,869 | .72 | .56 | 2.89 | 39 | |||||||||
— | (.21 | ) | 12.19 | 6.57 | 50,878 | .72 | .56 | 2.04 | 22 | |||||||||||
— | (.16 | ) | 11.64 | 16.47 | 69,531 | .71 | .57 | 1.67 | 11 | |||||||||||
— | (.16 | ) | 10.15 | 7.69 | 95,667 | .70 | .56 | 1.87 | 23 | |||||||||||
— | (.57 | ) | 12.53 | 9.34 | 25,244 | .48 | .27 | 1.62 | 12 | |||||||||||
— | (.23 | ) | 12.02 | 3.86 | 76,969 | .47 | .27 | 2.24 | 14 | |||||||||||
(.03 | ) | (.32 | ) | 11.81 | (1.15 | ) | 99,618 | .47 | .23 | 2.96 | 39 | |||||||||
— | (.26 | ) | 12.27 | 6.95 | 149,940 | .47 | .17 | 2.43 | 22 | |||||||||||
— | (.19 | ) | 11.72 | 16.93 | 166,211 | .46 | .17 | 1.87 | 11 | |||||||||||
— | (.21 | ) | 10.21 | 8.15 | 143,252 | .45 | .14 | 2.08 | 23 | |||||||||||
— | (.56 | ) | 12.43 | 9.18 | 77,783 | .73 | .52 | 1.40 | 12 | |||||||||||
— | (.20 | ) | 11.92 | 3.53 | 84,535 | .72 | .52 | 1.97 | 14 | |||||||||||
(.03 | ) | (.29 | ) | 11.72 | (1.42 | ) | 110,916 | .72 | .48 | 2.72 | 39 | |||||||||
— | (.22 | ) | 12.18 | 6.63 | 148,650 | .72 | .42 | 2.19 | 22 | |||||||||||
— | (.17 | ) | 11.64 | 16.73 | 199,046 | .71 | .42 | 1.74 | 11 | |||||||||||
— | (.18 | ) | 10.14 | 7.81 | 200,007 | .70 | .39 | 1.97 | 23 | |||||||||||
— | (.54 | ) | 12.44 | 9.04 | 53,088 | .98 | .77 | 1.07 | 12 | |||||||||||
— | (.18 | ) | 11.93 | 3.28 | 54,899 | .97 | .77 | 1.69 | 14 | |||||||||||
(.02 | ) | (.27 | ) | 11.73 | (1.71 | ) | 63,731 | .97 | .73 | 2.60 | 39 | |||||||||
— | (.19 | ) | 12.19 | 6.37 | 94,141 | .97 | .67 | 2.01 | 22 | |||||||||||
— | (.15 | ) | 11.65 | 16.37 | 135,920 | .96 | .67 | 1.57 | 11 | |||||||||||
— | (.15 | ) | 10.16 | 7.65 | 171,237 | .95 | .64 | 2.03 | 23 | |||||||||||
— | (.57 | ) | 12.53 | 9.32 | 234,849 | .48 | .32 | 1.48 | 12 | |||||||||||
— | (.23 | ) | 12.02 | 3.81 | 218,172 | .47 | .32 | 2.20 | 14 | |||||||||||
(.03 | ) | (.31 | ) | 11.81 | (1.23 | ) | 271,012 | .47 | .31 | 2.81 | 39 | |||||||||
— | (.24 | ) | 12.27 | 6.81 | 317,268 | .47 | .31 | 2.16 | 22 | |||||||||||
— | (.18 | ) | 11.72 | 16.80 | 304,251 | .46 | .32 | 1.71 | 11 | |||||||||||
— | (.19 | ) | 10.21 | 7.96 | 258,600 | .45 | .31 | 2.01 | 23 |
See accompanying notes which are an integral part of the financial statements.
Growth Strategy Fund 79
Russell Investment Company
Growth Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 50,859 |
Administration fees | 53,324 | |
Distribution fees | 455,906 | |
Shareholder servicing fees | 138,598 | |
Transfer agent fees | 243,998 | |
Trustee fees | 8,162 | |
$ | 950,847 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | |||||||||||||||||||||
affiliated company are as follows: | |||||||||||||||||||||
Fair Value, | Change in | ||||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | ||||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | ||||||||||||||
Commodity Strategies Fund | $ | 46,779 | $ | 745 | $ | 2,576 | $ | (1,396 | ) $ | 1,050 | $ | 44,602 | $ | — | $ | — | |||||
Global Infrastructure Fund | 47,155 | 2,134 | 7,632 | 722 | 1,044 | 43,423 | 798 | 1,315 | |||||||||||||
Global Real Estate Securities Fund | 45,907 | 4,034 | 7,052 | (45 | ) | (2,464 | ) | 40,380 | 1,489 | 2,528 | |||||||||||
Select U.S. Equity Fund | 173,900 | 51,612 | 28,893 | 781 | 22,773 | 220,173 | 1,547 | — | |||||||||||||
U.S. Defensive Equity Fund | 78,982 | 5,889 | 13,663 | 3,006 | (542 | ) | 73,672 | 428 | 5,456 | ||||||||||||
U.S. Dynamic Equity Fund | 126,040 | 5,886 | 67,005 | 6,659 | 4,957 | 76,537 | 866 | 4,974 | |||||||||||||
U.S. Small Cap Equity Fund | 139,551 | 2,822 | 21,216 | 372 | 22,130 | 143,659 | 986 | 298 | |||||||||||||
Global Opportunistic Credit Fund | 126,390 | 4,375 | 13,664 | (173 | ) | 1,413 | 118,341 | 3,326 | — | ||||||||||||
Strategic Bond Fund | 158,232 | 5,485 | 79,993 | (1,444 | ) | (6,479 | ) | 75,801 | 4,567 | 887 | |||||||||||
Unconstrained Total Return Fund | 63,458 | 72,397 | 9,073 | (71 | ) | (248) | 126,463 | 1,579 | 154 | ||||||||||||
Emerging Markets Fund | 141,747 | 2,978 | 26,156 | (3,186 | ) | 15,766 | 131,149 | 1,699 | — | ||||||||||||
Global Equity Fund | 189,943 | 17,773 | 26,409 | 1,344 | 6,137 | 188,788 | 3,077 | 12,194 | |||||||||||||
Select International Equity Fund | 206,237 | 5,143 | 29,188 | (2,441 | ) | 18,788 | 198,539 | 4,824 | — | ||||||||||||
U.S. Cash Management Fund | 21,946 | 72,665 | 84,343 | — | — | 10,268 | 54 | — | |||||||||||||
$ | 1,566,267 | $ | 253,938 | $ | 416,863 | $ | 4,128 | $ | 84,325 | $ | 1,491,795 | $ | 25,240 | $ | 27,806 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 1,371,994,220 | |||
Unrealized Appreciation | $ | 164,274,027 | |||
Unrealized Depreciation | (42,863,632 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 121,410,395 |
See accompanying notes which are an integral part of the financial statements.
80 Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | ||||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | ||||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | ||||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | ||||||
useful in comparing ongoing costs only, and will not help you | |||||||
Example | determine the relative total costs of owning different funds. In | ||||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | ||||||
transaction costs, including sales charges (loads ) on certain | would have been higher. | ||||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | ||||||
including advisory and administrative fees; distribution (12b-1) | Performance (5% | ||||||
and/or service fees; and other Fund expenses. The Example is | Actual | return before | |||||
intended to help you understand your ongoing costs (in dollars) | Class A | Performance | expenses) | ||||
Beginning Account Value | |||||||
of investing in the Fund and to compare these costs with the | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
ongoing costs of investing in other mutual funds. The Example | Ending Account Value | ||||||
is based on an investment of $1,000 invested at the beginning of | April 30, 2017 | $ | 1,110.20 | $ | 1,021.97 | ||
the period and held for the entire period indicated, which for this | Expenses Paid During Period* | $ | 2.98 | $ | 2.86 | ||
Fund is from November 1, 2016 to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.57% | ||||||
(representing the six month period annualized), multiplied by the average | |||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
The information in the table under the heading “Actual | year period). May reflect amounts waived and/or reimbursed. | ||||||
Performance” provides information about actual account values | |||||||
and actual expenses. You may use the information in this column, | Hypothetical | ||||||
Performance (5% | |||||||
together with the amount you invested, to estimate the expenses | Actual | return before | |||||
that you paid over the period. Simply divide your account value by | Class C | Performance | expenses) | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | ||||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | |||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,106.80 | $ | 1,018.25 | ||
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 6.90 | $ | 6.61 | ||
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 1.32% | ||||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||
Performance (5% return before expenses)” provides information | year period). May reflect amounts waived and/or reimbursed. | ||||||
about hypothetical account values and hypothetical expenses | |||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | ||||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | ||||||
Actual | return before | ||||||
actual return. The hypothetical account values and expenses | Class E | Performance | expenses) | ||||
may not be used to estimate the actual ending account balance or | Beginning Account Value | ||||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | ||||||
April 30, 2017 | $ | 1,110.90 | $ | 1,021.97 | |||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | 2.98 | $ | 2.86 | ||
5% hypothetical examples that appear in the shareholder reports | |||||||
of other funds. | * Expenses are equal to the Fund's annualized expense ratio of 0.57% | ||||||
(representing the six month period annualized), multiplied by the average | |||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||||
year period). May reflect amounts waived and/or reimbursed. |
Equity Growth Strategy Fund 81
Russell Investment Company
Equity Growth Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R1 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,112.30 | $ | 1,023.60 | ||
Expenses Paid During Period* | $ | 1.26 | $ | 1.20 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.24% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R4 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,111.00 | $ | 1,022.36 | ||
Expenses Paid During Period* | $ | 2.56 | $ | 2.46 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.49% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class R5 | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,109.20 | $ | 1,021.12 | ||
Expenses Paid During Period* | $ | 3.87 | $ | 3.71 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.74% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. | ||||||
Hypothetical | ||||||
Performance (5% | ||||||
Actual | return before | |||||
Class S | Performance | expenses) | ||||
Beginning Account Value | ||||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
April 30, 2017 | $ | 1,112.00 | $ | 1,023.21 | ||
Expenses Paid During Period* | $ | 1.68 | $ | 1.61 | ||
* Expenses are equal to the Fund's annualized expense ratio of 0.32% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). May reflect amounts waived and/or reimbursed. |
82 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||||
Fair | |||||
Value | |||||
Shares | $ | ||||
Investments in Affiliated Funds - 97.4% | |||||
Alternative - 7.6% | |||||
Commodity Strategies Fund Class Y | 3,360,898 | 18,351 | |||
Global Infrastructure Fund Class Y | 1,578,751 | 18,771 | |||
Global Real Estate Securities Fund Class Y | 333,176 | 11,235 | |||
48,357 | |||||
Domestic Equities - 37.4% | |||||
Select U.S. Equity Fund Class Y | 6,070,810 | 74,913 | |||
U.S. Defensive Equity Fund Class Y | 902,414 | 45,816 | |||
U.S. Dynamic Equity Fund Class Y | 4,265,038 | 46,660 | |||
U.S. Small Cap Equity Fund Class Y | 2,213,750 | 71,260 | |||
238,649 | |||||
Fixed Income - 11.4% | |||||
Global Opportunistic Credit Fund Class Y | 4,549,668 | 44,678 | |||
Unconstrained Total Return Fund Class Y | 2,847,780 | 28,364 | |||
73,042 | |||||
International Equities - 41.0% | |||||
Emerging Markets Fund Class Y | 4,150,789 | 75,793 | |||
Global Equity Fund Class Y | 9,528,458 | 102,907 | |||
Select International Equity Fund Class Y | 8,911,943 | 82,881 | |||
261,581 | |||||
Total Investments in Affiliated Funds | |||||
(cost $577,886) | 621,629 | ||||
Options Purchased - 0.1% | |||||
(Number of Contracts) | |||||
EURO STOXX 50 Index | |||||
May 2017 3,303.33 Call (2,009) | EUR | 6,636 | (ÿ) | 501 | |
S&P 500 Index | |||||
Jun 2017 2,395.40 Call (6,746) | USD | 16,159 | (ÿ) | 158 | |
Total Options Purchased | |||||
(cost $480) | 659 | ||||
Short-Term Investments - 1.0% | |||||
U.S. Cash Management Fund | 6,164,706 | (8) | 6,166 | ||
Total Short-Term Investments | |||||
(cost $6,166) | 6,166 | ||||
Total Investments 98.5% | |||||
(identified cost $584,532) | 628,454 | ||||
Other Assets and Liabilities, Net - 1.5% | 9,842 | ||||
Net Assets - 100.0% | 638,296 |
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 83
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Futures Contracts | |||||||
Amounts in thousands (except contract amounts) | |||||||
Unrealized | |||||||
Appreciation | |||||||
Number of | Notional | Expiration | (Depreciation) | ||||
Contracts | Amount | Date | $ | ||||
Long Positions | |||||||
Amsterdam Index Futures | 58 | EUR | 5,993 | 05/17 | 146 | ||
CAC40 Euro Index Futures | 334 | EUR | 17,418 | 05/17 | 995 | ||
DAX Index Futures | 51 | EUR | 15,896 | 06/17 | 625 | ||
Dow Jones U.S. Real Estate Index Futures | 31 | USD | 966 | 06/17 | 31 | ||
EURO STOXX 50 Index Futures | 108 | EUR | 3,789 | 06/17 | 207 | ||
FTSE/MIB Index Futures | 36 | EUR | 3,652 | 06/17 | 235 | ||
IBEX 35 Index Futures | 55 | EUR | 5,900 | 05/17 | 309 | ||
OMXS30 Index Futures | 233 | SEK | 37,699 | 05/17 | 185 | ||
Russell 2000 Mini Index Futures | 8 | USD | 559 | 06/17 | 16 | ||
S&P 500 E-Mini Index Futures | 54 | USD | 6,427 | 06/17 | 37 | ||
Short Positions | |||||||
FTSE 100 Index Futures | 16 | GBP | 1,146 | 06/17 | 27 | ||
Hang Seng Index Futures | 3 | HKD | 3,684 | 05/17 | (5 | ) | |
MSCI Emerging Markets Mini Index Futures | 113 | USD | 5,531 | 06/17 | (290 | ) | |
MSCI Singapore Index Futures | 4 | SGD | 139 | 05/17 | (1 | ) | |
Russell 1000 Mini Index Futures | 56 | USD | 3,696 | 06/17 | (29 | ) | |
S&P 500 E-Mini Index Futures | 541 | USD | 64,392 | 06/17 | (504 | ) | |
S&P Mid 400 E-Mini Index Futures | 29 | USD | 5,017 | 06/17 | (81 | ) | |
S&P/TSX 60 Index Futures | 74 | CAD | 13,569 | 06/17 | (52 | ) | |
SPI 200 Index Futures | 81 | AUD | 11,974 | 06/17 | (254 | ) | |
TOPIX Index Futures | 3 | JPY | 45,899 | 06/17 | 2 | ||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | 1,599 |
Options Written | ||||||||||||
Amounts in thousands (except contract amounts) | ||||||||||||
Number of | Strike | Notional | Expiration | Fair Value | ||||||||
Call/Put | Contracts | Price | Amount | Date | $ | |||||||
EURO STOXX 50 Index | Put | 2,009 | 2,939.96 | EUR | 5,906 | 05/19/17 | (2 | ) | ||||
S&P 500 Index | Put | 6,746 | 2,134.52 | USD | 14,399 | 06/16/17 | (22 | ) | ||||
Total Liability for Options Written (premiums received $169) | (24 | ) | ||||||||||
Transactions in options written contracts for the period ended April 30, 2017 were as follows: | ||||||||||||
Number of | Premiums | |||||||||||
Contracts | Received | |||||||||||
Outstanding October 31, 2016 | 25,006 | $ | 296 | |||||||||
Opened | 197,734 | 366 | ||||||||||
Closed | (205,649 | ) | (446 | ) | ||||||||
Expired | (8,336 | ) | (47 | ) | ||||||||
Outstanding April 30, 2017 | 8,755 | $ | 169 |
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 2,802 | EUR | 2,610 | 06/21/17 | 48 | |
Bank of America | USD | 2,594 | INR | 175,920 | 06/21/17 | 128 | |
Bank of America | USD | 783 | MXN | 15,818 | 06/21/17 | 51 |
See accompanying notes which are an integral part of the financial statements.
84 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
Bank of America | USD | 3,377 | RUB | 201,020 | 06/21/17 | 115 | |
Bank of America | USD | 1,222 | ZAR | 16,278 | 06/21/17 | (14 | ) |
Bank of America | CNY | 153,680 | USD | 22,046 | 06/21/17 | (125 | ) |
Bank of America | GBP | 100 | USD | 125 | 06/21/17 | (4 | ) |
Bank of America | KRW | 14,897,240 | USD | 13,046 | 06/21/17 | (54 | ) |
Bank of America | TWD | 295,740 | USD | 9,658 | 06/21/17 | (150 | ) |
Bank of Montreal | USD | 12,589 | AUD | 16,640 | 06/21/17 | (140 | ) |
Bank of Montreal | USD | 603 | CAD | 804 | 06/21/17 | (14 | ) |
Bank of Montreal | USD | 726 | EUR | 686 | 06/21/17 | 23 | |
Bank of Montreal | USD | 424 | GBP | 344 | 06/21/17 | 23 | |
Bank of Montreal | USD | 126 | JPY | 14,286 | 06/21/17 | 3 | |
Bank of Montreal | USD | 784 | MXN | 15,818 | 06/21/17 | 50 | |
Bank of Montreal | USD | 53 | SEK | 474 | 06/21/17 | 1 | |
Bank of Montreal | USD | 1,224 | ZAR | 16,278 | 06/21/17 | (16 | ) |
Bank of Montreal | AUD | 799 | USD | 611 | 05/15/17 | 12 | |
Bank of Montreal | AUD | 6,040 | USD | 4,615 | 06/21/17 | 96 | |
Bank of Montreal | CAD | 1,091 | USD | 818 | 05/15/17 | 19 | |
Bank of Montreal | CHF | 716 | USD | 717 | 05/15/17 | (3 | ) |
Bank of Montreal | EUR | 2,516 | USD | 2,695 | 05/15/17 | (47 | ) |
Bank of Montreal | GBP | 1,156 | USD | 1,446 | 05/15/17 | (52 | ) |
Bank of Montreal | HKD | 682 | USD | 88 | 06/21/17 | — | |
Bank of Montreal | JPY | 201,669 | USD | 1,806 | 05/15/17 | (4 | ) |
Bank of Montreal | SGD | 28 | USD | 20 | 06/21/17 | — | |
BNP Paribas | USD | 602 | CAD | 804 | 06/21/17 | (12 | ) |
BNP Paribas | USD | 724 | EUR | 686 | 06/21/17 | 25 | |
BNP Paribas | USD | 423 | GBP | 344 | 06/21/17 | 23 | |
BNP Paribas | USD | 125 | JPY | 14,286 | 06/21/17 | 3 | |
BNP Paribas | USD | 783 | MXN | 15,818 | 06/21/17 | 50 | |
BNP Paribas | USD | 53 | SEK | 474 | 06/21/17 | 1 | |
BNP Paribas | USD | 1,222 | ZAR | 16,278 | 06/21/17 | (14 | ) |
BNP Paribas | AUD | 6,040 | USD | 4,572 | 06/21/17 | 53 | |
BNP Paribas | HKD | 682 | USD | 88 | 06/21/17 | — | |
BNP Paribas | SGD | 28 | USD | 20 | 06/21/17 | — | |
Citigroup | USD | 602 | AUD | 806 | 05/15/17 | 2 | |
Citigroup | USD | 777 | CAD | 1,060 | 05/15/17 | — | |
Citigroup | USD | 726 | CHF | 720 | 05/15/17 | (2 | ) |
Citigroup | USD | 2,818 | EUR | 2,580 | 05/15/17 | (6 | ) |
Citigroup | USD | 1,472 | GBP | 1,140 | 05/15/17 | 4 | |
Citigroup | USD | 1,755 | JPY | 195,813 | 05/15/17 | 2 | |
Citigroup | AUD | 799 | USD | 611 | 05/15/17 | 13 | |
Citigroup | AUD | 806 | USD | 601 | 06/07/17 | (2 | ) |
Citigroup | CAD | 1,091 | USD | 818 | 05/15/17 | 19 | |
Citigroup | CAD | 1,060 | USD | 777 | 06/07/17 | — | |
Citigroup | CHF | 716 | USD | 717 | 05/15/17 | (3 | ) |
Citigroup | CHF | 720 | USD | 727 | 06/07/17 | 2 | |
Citigroup | EUR | 2,516 | USD | 2,693 | 05/15/17 | (49 | ) |
Citigroup | EUR | 2,580 | USD | 2,821 | 06/07/17 | 6 | |
Citigroup | GBP | 1,156 | USD | 1,443 | 05/15/17 | (54 | ) |
Citigroup | GBP | 1,140 | USD | 1,473 | 06/07/17 | (4 | ) |
Citigroup | JPY | 201,669 | USD | 1,807 | 05/15/17 | (3 | ) |
Citigroup | JPY | 195,813 | USD | 1,756 | 06/07/17 | (3 | ) |
Citigroup | ZAR | 77,470 | USD | 5,520 | 06/21/17 | (228 | ) |
HSBC | USD | 602 | AUD | 806 | 05/15/17 | 2 |
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 85
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
HSBC | USD | 777 | CAD | 1,060 | 05/15/17 | — | |
HSBC | USD | 727 | CHF | 720 | 05/15/17 | (3 | ) |
HSBC | USD | 2,821 | EUR | 2,580 | 05/15/17 | (8 | ) |
HSBC | USD | 1,475 | GBP | 1,140 | 05/15/17 | 2 | |
HSBC | USD | 1,757 | JPY | 195,813 | 05/15/17 | — | |
HSBC | AUD | 806 | USD | 602 | 06/07/17 | (2 | ) |
HSBC | CAD | 1,060 | USD | 777 | 06/07/17 | — | |
HSBC | CHF | 720 | USD | 728 | 06/07/17 | 3 | |
HSBC | EUR | 2,580 | USD | 2,824 | 06/07/17 | 8 | |
HSBC | GBP | 1,140 | USD | 1,476 | 06/07/17 | (2 | ) |
HSBC | JPY | 195,813 | USD | 1,759 | 06/07/17 | — | |
Royal Bank of Canada | USD | 602 | AUD | 806 | 05/15/17 | 1 | |
Royal Bank of Canada | USD | 777 | CAD | 1,060 | 05/15/17 | — | |
Royal Bank of Canada | USD | 602 | CAD | 804 | 06/21/17 | (12 | ) |
Royal Bank of Canada | USD | 726 | CHF | 720 | 05/15/17 | (2 | ) |
Royal Bank of Canada | USD | 2,819 | EUR | 2,580 | 05/15/17 | (7 | ) |
Royal Bank of Canada | USD | 724 | EUR | 686 | 06/21/17 | 25 | |
Royal Bank of Canada | USD | 1,475 | GBP | 1,140 | 05/15/17 | 2 | |
Royal Bank of Canada | USD | 423 | GBP | 344 | 06/21/17 | 23 | |
Royal Bank of Canada | USD | 1,756 | JPY | 195,813 | 05/15/17 | 1 | |
Royal Bank of Canada | USD | 126 | JPY | 14,286 | 06/21/17 | 3 | |
Royal Bank of Canada | USD | 783 | MXN | 15,818 | 06/21/17 | 50 | |
Royal Bank of Canada | USD | 53 | SEK | 474 | 06/21/17 | 1 | |
Royal Bank of Canada | USD | 1,222 | ZAR | 16,278 | 06/21/17 | (14 | ) |
Royal Bank of Canada | AUD | 799 | USD | 611 | 05/15/17 | 13 | |
Royal Bank of Canada | AUD | 806 | USD | 602 | 06/07/17 | (1 | ) |
Royal Bank of Canada | AUD | 6,040 | USD | 4,579 | 06/21/17 | 59 | |
Royal Bank of Canada | CAD | 1,091 | USD | 818 | 05/15/17 | 19 | |
Royal Bank of Canada | CAD | 1,060 | USD | 777 | 06/07/17 | — | |
Royal Bank of Canada | CHF | 716 | USD | 717 | 05/15/17 | (3 | ) |
Royal Bank of Canada | CHF | 720 | USD | 727 | 06/07/17 | 2 | |
Royal Bank of Canada | EUR | 2,516 | USD | 2,693 | 05/15/17 | (49 | ) |
Royal Bank of Canada | EUR | 2,580 | USD | 2,822 | 06/07/17 | 7 | |
Royal Bank of Canada | GBP | 1,156 | USD | 1,444 | 05/15/17 | (54 | ) |
Royal Bank of Canada | GBP | 1,140 | USD | 1,476 | 06/07/17 | (2 | ) |
Royal Bank of Canada | HKD | 682 | USD | 88 | 06/21/17 | — | |
Royal Bank of Canada | JPY | 201,669 | USD | 1,806 | 05/15/17 | (4 | ) |
Royal Bank of Canada | JPY | 195,813 | USD | 1,758 | 06/07/17 | (1 | ) |
Royal Bank of Canada | SGD | 28 | USD | 20 | 06/21/17 | — | |
Standard Chartered | USD | 603 | CAD | 804 | 06/21/17 | (14 | ) |
Standard Chartered | USD | 726 | EUR | 686 | 06/21/17 | 23 | |
Standard Chartered | USD | 423 | GBP | 344 | 06/21/17 | 23 | |
Standard Chartered | USD | 126 | JPY | 14,286 | 06/21/17 | 3 | |
Standard Chartered | USD | 783 | MXN | 15,818 | 06/21/17 | 51 | |
Standard Chartered | USD | 53 | SEK | 474 | 06/21/17 | 1 | |
Standard Chartered | USD | 1,222 | ZAR | 16,278 | 06/21/17 | (14 | ) |
Standard Chartered | AUD | 6,040 | USD | 4,614 | 06/21/17 | 95 | |
Standard Chartered | HKD | 682 | USD | 88 | 06/21/17 | — | |
Standard Chartered | SGD | 28 | USD | 20 | 06/21/17 | — | |
State Street | USD | 93 | CAD | 125 | 05/15/17 | (2 | ) |
State Street | USD | 601 | CAD | 804 | 06/21/17 | (12 | ) |
State Street | USD | 725 | EUR | 686 | 06/21/17 | 24 | |
State Street | USD | 79 | GBP | 63 | 05/15/17 | 3 |
See accompanying notes which are an integral part of the financial statements.
86 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Foreign Currency Exchange Contracts | |||||||
Amounts in thousands | |||||||
Unrealized | |||||||
Appreciation | |||||||
Amount | Amount | (Depreciation) | |||||
Counterparty | Sold | Bought | Settlement Date | $ | |||
State Street | USD | 424 | GBP | 344 | 06/21/17 | 22 | |
State Street | USD | 4 | HKD | 32 | 05/15/17 | — | |
State Street | USD | 1,149 | HKD | 8,933 | 05/15/17 | — | |
State Street | USD | 211 | JPY | 23,424 | 05/15/17 | (1 | ) |
State Street | USD | 125 | JPY | 14,286 | 06/21/17 | 3 | |
State Street | USD | 19 | SEK | 170 | 05/15/17 | — | |
State Street | USD | 1,193 | SEK | 10,523 | 05/15/17 | (4 | ) |
State Street | USD | 53 | SEK | 474 | 06/21/17 | 1 | |
State Street | USD | 2 | SGD | 3 | 05/15/17 | — | |
State Street | USD | 414 | SGD | 578 | 05/15/17 | — | |
State Street | AUD | 29 | USD | 22 | 05/15/17 | — | |
State Street | AUD | 6,040 | USD | 4,579 | 06/21/17 | 61 | |
State Street | CHF | 16 | USD | 16 | 05/15/17 | — | |
State Street | EUR | 257 | USD | 274 | 05/15/17 | (6 | ) |
State Street | HKD | 8,965 | USD | 1,155 | 05/15/17 | 2 | |
State Street | HKD | 8,933 | USD | 1,149 | 06/07/17 | — | |
State Street | HKD | 682 | USD | 88 | 06/21/17 | — | |
State Street | RUB | 393,710 | USD | 6,864 | 06/21/17 | 23 | |
State Street | SEK | 10,693 | USD | 1,201 | 05/15/17 | (7 | ) |
State Street | SEK | 10,523 | USD | 1,194 | 06/07/17 | 4 | |
State Street | SGD | 581 | USD | 416 | 05/15/17 | — | |
State Street | SGD | 578 | USD | 414 | 06/07/17 | — | |
State Street | SGD | 28 | USD | 20 | 06/21/17 | — | |
UBS | USD | 602 | AUD | 806 | 05/15/17 | 2 | |
UBS | USD | 777 | CAD | 1,060 | 05/15/17 | — | |
UBS | USD | 726 | CHF | 720 | 05/15/17 | (2 | ) |
UBS | USD | 2,817 | EUR | 2,580 | 05/15/17 | (5 | ) |
UBS | USD | 1,473 | GBP | 1,140 | 05/15/17 | 3 | |
UBS | USD | 1,755 | JPY | 195,813 | 05/15/17 | 3 | |
UBS | AUD | 799 | USD | 611 | 05/15/17 | 12 | |
UBS | AUD | 806 | USD | 602 | 06/07/17 | (2 | ) |
UBS | CAD | 1,091 | USD | 818 | 05/15/17 | 18 | |
UBS | CAD | 1,060 | USD | 777 | 06/07/17 | — | |
UBS | CHF | 716 | USD | 717 | 05/15/17 | (3 | ) |
UBS | CHF | 720 | USD | 727 | 06/07/17 | 2 | |
UBS | EUR | 2,516 | USD | 2,692 | 05/15/17 | (50 | ) |
UBS | EUR | 2,580 | USD | 2,820 | 06/07/17 | 5 | |
UBS | GBP | 1,156 | USD | 1,444 | 05/15/17 | (52 | ) |
UBS | GBP | 1,140 | USD | 1,474 | 06/07/17 | (3 | ) |
UBS | JPY | 201,669 | USD | 1,806 | 05/15/17 | (4 | ) |
UBS | JPY | 195,813 | USD | 1,756 | 06/07/17 | (3 | ) |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | 26 |
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 87
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
Credit Default Swap Contracts | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Credit Indices | ||||||||||||||||||
Fund (Pays)/ | ||||||||||||||||||
Receives | Termination | Fair Value | ||||||||||||||||
Reference Entity | Counterparty | Notional Amount | Fixed Rate | Date | $ | |||||||||||||
CDX NA High Yield Index | Bank of America | USD | 1,000 | 5.000 | % | 06/20/22 | 79 | |||||||||||
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $62 | 79 | |||||||||||||||||
Presentation of Portfolio Holdings | ||||||||||||||||||
Amounts in thousands | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Practical | ||||||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient (a) | Total | % of Net Assets | ||||||||||||
Investments in Affiliated Funds | $ | 621,629 | $ | — | $ | — | $ | — | $ | 621,629 | 97.4 | |||||||
Options Purchased | — | 659 | — | — | 659 | 0.1 | ||||||||||||
Short-Term Investments | — | — | — | 6,166 | 6,166 | 1.0 | ||||||||||||
Total Investments | 621,629 | 659 | — | 6,166 | 628,454 | 98.5 | ||||||||||||
Other Assets and Liabilities, Net | 1.5 | |||||||||||||||||
100.0 | ||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||
Assets | ||||||||||||||||||
Futures Contracts | 2,815 | — | — | — | 2,815 | 0.4 | ||||||||||||
Foreign Currency Exchange Contracts | — | 1,377 | — | — | 1,377 | 0.2 | ||||||||||||
Credit Default Swap Contracts | — | 79 | — | — | 79 | —* | ||||||||||||
' | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Futures Contracts | (1,216 | ) | — | — | — | (1,216 | ) | (0.2 | ) | |||||||||
Options Written | — | (24 | ) | — | — | (24 | ) | (—)* | ||||||||||
Foreign Currency Exchange Contracts | — | (1,351 | ) | — | — | (1,351 | ) | (0.2 | ) | |||||||||
Total Other Financial Instruments** | $ | 1,599 | $ | 81 | $ | — | $ | — | $ | 1,680 |
* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
88 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Fair Value of Derivative Instruments — April 30, 2017 (Unaudited)
Amounts in thousands
Foreign | ||||||||
Equity | Credit | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||
Location: Statement of Assets and Liabilities - Assets | ||||||||
Investments, at fair value* | $ | 659 | $ | — | $ | — | ||
Unrealized appreciation on foreign currency exchange contracts | — | — | 1,377 | |||||
Variation margin on futures contracts** | 2,815 | — | — | |||||
Credit default swap contracts, at fair value | — | 79 | — | |||||
Total | $ | 3,474 | $ | 79 | $ | 1,377 | ||
Location: Statement of Assets and Liabilities - Liabilities | ||||||||
Variation margin on futures contracts** | $ | 1,216 | $ | — | $ | — | ||
Unrealized depreciation on foreign currency exchange contracts | — | — | 1,351 | |||||
Options written, at fair value | 24 | — | — | |||||
Total | $ | 1,240 | $ | — | $ | 1,351 | ||
Foreign | ||||||||
Equity | Credit | Currency | ||||||
Derivatives not accounted for as hedging instruments | Contracts | Contracts | Contracts | |||||
Location: Statement of Operations - Net realized gain (loss) | ||||||||
Investments*** | $ | (190 | ) | $ | — | $ | — | |
Futures contracts | 35 | — | — | |||||
Options written | 480 | — | — | |||||
Total return swap contracts | 1,375 | — | — | |||||
Credit default swap contracts | — | 52 | — | |||||
Foreign currency-related transactions**** | — | — | 2,727 | |||||
Total | $ | 1,700 | $ | 52 | $ | 2,727 | ||
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | ||||||||
Investments***** | $ | 142 | $ | — | $ | — | ||
Futures contracts | 1,067 | — | — | |||||
Options written | 76 | — | — | |||||
Total return swap contracts | (1,264 | ) | — | — | ||||
Credit default swap contracts | — | 12 | — | |||||
Foreign currency-related transactions****** | — | — | (1,674 | ) | ||||
Total | $ | 21 | $ | 12 | $ | (1,674 | ) |
* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Only includes net realized gain (loss) on forward and spot contracts. May differ from the net realized gain (loss) on foreign currency-related transactions reported
within the Statement of Operations.
***** Includes net unrealized gain (loss) on purchased options as reported in the Schedule of Investments.
****** Only includes change in unrealized gain (loss) on forward and spot contracts. May differ from the net change in unrealized gain (loss) on foreign currency-related
transactions reported within the Statement of Operations.
For further disclosure on derivatives see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 89
Russell Investment Company
Equity Growth Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Assets | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Assets | Assets | Liabilities | Liabilities | |||||
Options Purchased Contracts | Investments, at fair value | $ | 659 | $ | — $ | 659 | |||
Foreign Currency Exchange Contracts | Unrealized appreciation on foreign currency exchange contracts | 1,377 | — | 1,377 | |||||
Futures Contracts | Variation margin on futures contracts | 299 | — | 299 | |||||
Credit Default Swap Contracts | Credit default swap contracts, at fair value | 79 | — | 79 | |||||
Total Financial and Derivative Assets | 2,414 | — | 2,414 | ||||||
Financial and Derivative Assets not subject to a netting agreement | (374 | ) | — | (374 | ) | ||||
Total Financial and Derivative Assets subject to a netting agreement | $ | 2,040 | $ | — $ | 2,040 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Assets | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Received^ | Net Amount | |||||
Bank of America | $ | 343 | $ | 343 | $ | — | $ — | ||
Bank of Montreal | 227 | 201 | — | 26 | |||||
BNP Paribas | 156 | 26 | — | 130 | |||||
Citigroup | 48 | 48 | — | — | |||||
HSBC | 15 | 15 | — | — | |||||
JPMorgan Chase | 658 | 24 | — | 634 | |||||
Royal Bank of Canada | 207 | 72 | — | 135 | |||||
Standard Chartered | 196 | 28 | — | 168 | |||||
State Street | 144 | 22 | — | 122 | |||||
UBS | 46 | 46 | — | — | |||||
Total | $ | 2,040 | $ | 825 | $ | — | $ 1,215 |
See accompanying notes which are an integral part of the financial statements.
90 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
April 30, 2017 (Unaudited)
Amounts in thousands | |||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross | Net Amounts | ||||||||
Amounts | of Liabilities | ||||||||
Gross | Offset in the | Presented in | |||||||
Amounts of | Statement of | the Statement | |||||||
Recognized | Assets and | of Assets and | |||||||
Description | Location: Statement of Assets and Liabilities - Liabilities | Liabilities | Liabilities | Liabilities | |||||
Futures Contracts | Variation margin on futures contracts | $ | 110 | $ | — $ | 110 | |||
Foreign Currency Exchange Contracts | Unrealized depreciation on foreign currency exchange contracts | 1,351 | — | 1,351 | |||||
Options Written Contracts | Options written, at fair value | 24 | — | 24 | |||||
Total Financial and Derivative Liabilities | 1,485 | — | 1,485 | ||||||
Financial and Derivative Liabilities not subject to a netting agreement | (104 | ) | — | (104 | ) | ||||
Total Financial and Derivative Liabilities subject to a netting agreement | $ | 1,381 | $ | — $ | 1,381 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty | |||||||||
Gross Amounts Not Offset in | |||||||||
the Statement of Assets and | |||||||||
Liabilities | |||||||||
Net Amounts | |||||||||
of Liabilities | |||||||||
Presented in | |||||||||
the Statement | Financial and | ||||||||
of Assets and | Derivative | Collateral | |||||||
Counterparty | Liabilities | Instruments | Pledged^ | Net Amount | |||||
Bank of America | $ | 348 | $ | 343 | $ | — | $ 5 | ||
Bank of Montreal | 275 | 201 | — | 74 | |||||
BNP Paribas | 26 | 26 | — | — | |||||
Citigroup | 355 | 48 | — | 307 | |||||
HSBC | 16 | 15 | — | 1 | |||||
JPMorgan Chase | 24 | 24 | — | — | |||||
Royal Bank of Canada | 151 | 72 | — | 79 | |||||
Standard Chartered | 28 | 28 | — | — | |||||
State Street | 33 | 22 | — | 11 | |||||
UBS | 125 | 46 | — | 79 | |||||
Total | $ | 1,381 | $ | 825 | $ | — | $ 556 |
^ Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.
For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 91
Russell Investment Company
Equity Growth Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 584,532 |
Investments, at fair value(>) | 628,454 | |
Cash (restricted)(a)(b) | 9,910 | |
Unrealized appreciation on foreign currency exchange contracts | 1,377 | |
Receivables: | ||
Dividends from affiliated funds | 5 | |
Investments sold | 993 | |
Fund shares sold | 316 | |
Variation margin on futures contracts | 299 | |
Prepaid expenses | 7 | |
Credit default swap contracts, at fair value(+) | 79 | |
Total assets | 641,440 | |
Liabilities | ||
Payables: | ||
Due to custodian | 1 | |
Due to broker (c) | 81 | |
Fund shares redeemed | 1,085 | |
Accrued fees to affiliates | 387 | |
Other accrued expenses | 105 | |
Variation margin on futures contracts | 110 | |
Unrealized depreciation on foreign currency exchange contracts | 1,351 | |
Options written, at fair value(x) | 24 | |
Total liabilities | 3,144 | |
Net Assets | $ | 638,296 |
See accompanying notes which are an integral part of the financial statements.
92 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Statement of Assets and Liabilities, continued — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | (1,622 | ) |
Accumulated net realized gain (loss) | (66,049 | ) | |
Unrealized appreciation (depreciation) on: | |||
Investments | 43,922 | ||
Futures contracts | 1,599 | ||
Options written | 145 | ||
Credit default swap contracts | 17 | ||
Foreign currency-related transactions | 25 | ||
Shares of beneficial interest | 531 | ||
Additional paid-in capital | 659,728 | ||
Net Assets | $ | 638,296 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 12.54 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 13.31 | |
Class A — Net assets | $ | 193,099,687 | |
Class A — Shares outstanding ($.01 par value) | 15,395,423 | ||
Net asset value per share: Class C(#) | $ | 11.28 | |
Class C — Net assets | $ | 237,579,029 | |
Class C — Shares outstanding ($.01 par value) | 21,056,639 | ||
Net asset value per share: Class E(#) | $ | 12.26 | |
Class E — Net assets | $ | 3,470,449 | |
Class E — Shares outstanding ($.01 par value) | 283,068 | ||
Net asset value per share: Class R1(#) | $ | 12.61 | |
Class R1 — Net assets | $ | 15,227,885 | |
Class R1 — Shares outstanding ($.01 par value) | 1,207,597 | ||
Net asset value per share: Class R4(#) | $ | 12.30 | |
Class R4 — Net assets | $ | 27,890,966 | |
Class R4 — Shares outstanding ($.01 par value) | 2,267,777 | ||
Net asset value per share: Class R5(#) | $ | 12.15 | |
Class R5 — Net assets | $ | 22,040,181 | |
Class R5 — Shares outstanding ($.01 par value) | 1,813,393 | ||
Net asset value per share: Class S(#) | $ | 12.59 | |
Class S — Net assets | $ | 138,987,834 | |
Class S — Shares outstanding ($.01 par value) | 11,042,438 | ||
Amounts in thousands | |||
(x) Premiums received on options written | $ | 169 | |
(+) Credit default swap contracts - premiums paid (received) | $ | 62 | |
(>) Investments in affiliated funds | $ | 627,795 | |
(a) Cash Collateral for Futures | $ | 9,810 | |
(b) Cash Collateral for Swaps | $ | 100 | |
(c) Due to Broker for Swaps | $ | 81 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 93
Russell Investment Company
Equity Growth Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 8,847 | |
Expenses | |||
Advisory fees | 646 | ||
Administrative fees | 137 | ||
Custodian fees | 33 | ||
Distribution fees - Class A | 233 | ||
Distribution fees - Class C | 902 | ||
Distribution fees - Class R5 | 28 | ||
Transfer agent fees - Class A | 186 | ||
Transfer agent fees - Class C | 241 | ||
Transfer agent fees - Class E | 5 | ||
Transfer agent fees - Class R1 | 23 | ||
Transfer agent fees - Class R4 | 29 | ||
Transfer agent fees - Class R5 | 22 | ||
Transfer agent fees - Class S | 140 | ||
Professional fees | 24 | ||
Registration fees | 53 | ||
Shareholder servicing fees - Class C | 301 | ||
Shareholder servicing fees - Class E | 5 | ||
Shareholder servicing fees - Class R4 | 36 | ||
Shareholder servicing fees - Class R5 | 28 | ||
Trustees’ fees | 11 | ||
Printing fees | 52 | ||
Miscellaneous | 7 | ||
Expenses before reductions | 3,142 | ||
Expense reductions | (606 | ) | |
Net expenses | 2,536 | ||
Net investment income (loss) | 6,311 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 8,629 | ||
Futures contracts | 35 | ||
Options written | 480 | ||
Total return swap contracts | 1,375 | ||
Credit default swap contracts | 52 | ||
Foreign currency-related transactions | 2,728 | ||
Capital gain distributions from affiliated funds | 13,373 | ||
Net realized gain (loss) | 26,672 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments | 36,544 | ||
Futures contracts | 1,067 | ||
Options written | 76 | ||
Total return swap contracts | (1,264 | ) | |
Credit default swap contracts | 12 | ||
Foreign currency-related transactions | (1,675 | ) | |
Net change in unrealized appreciation (depreciation) | 34,760 | ||
Net realized and unrealized gain (loss) | 61,432 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 67,743 |
See accompanying notes which are an integral part of the financial statements.
94 Equity Growth Strategy Fund
Russell Investment Company
Equity Growth Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 6,311 | $ | 10,423 | ||
Net realized gain (loss) | 26,672 | 31,282 | ||||
Net change in unrealized appreciation (depreciation) | 34,760 | (22,321 | ) | |||
Net increase (decrease) in net assets from operations | 67,743 | 19,384 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (3,048 | ) | (2,992 | ) | ||
Class C | (3,506 | ) | (2,683 | ) | ||
Class E | (86 | ) | (120 | ) | ||
Class R1 | (436 | ) | (523 | ) | ||
Class R4 | (489 | ) | (569 | ) | ||
Class R5 | (362 | ) | (362 | ) | ||
Class S | (2,324 | ) | (2,926 | ) | ||
Net decrease in net assets from distributions | (10,251 | ) | (10,175 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (87,952 | ) | (119,442 | ) | ||
Total Net Increase (Decrease) in Net Assets | (30,460 | ) | (110,233 | ) | ||
Net Assets | ||||||
Beginning of period | 668,756 | 778,989 | ||||
End of period | $ | 638,296 | $ | 668,756 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | (1,622 | ) | $ | 2,318 |
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 95
Russell Investment Company
Equity Growth Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 708 | $ | 8,611 | 873 | $ | 9,528 | ||||||
Proceeds from reinvestment of distributions | 252 | 3,034 | 270 | 2,974 | ||||||||
Payments for shares redeemed | (1,473 | ) | (17,752 | ) | (3,566 | ) | (39,181 | ) | ||||
Net increase (decrease) | (513 | ) | (6,107 | ) | (2,423 | ) | (26,679 | ) | ||||
Class C | ||||||||||||
Proceeds from shares sold | 787 | 8,573 | 1,693 | 16,640 | ||||||||
Proceeds from reinvestment of distributions | 321 | 3,469 | 269 | 2,655 | ||||||||
Payments for shares redeemed | (3,446 | ) | (37,497 | ) | (6,182 | ) | (61,434 | ) | ||||
Net increase (decrease) | (2,338 | ) | (25,455 | ) | (4,220 | ) | (42,139 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 21 | 250 | 117 | 1,206 | ||||||||
Proceeds from reinvestment of distributions | 7 | 85 | 11 | 118 | ||||||||
Payments for shares redeemed | (268 | ) | (3,156 | ) | (573 | ) | (6,106 | ) | ||||
Net increase (decrease) | (240 | ) | (2,821 | ) | (445 | ) | (4,782 | ) | ||||
Class R1 | ||||||||||||
Proceeds from shares sold | 146 | 1,756 | 431 | 4,720 | ||||||||
Proceeds from reinvestment of distributions | 36 | 432 | 47 | 520 | ||||||||
Payments for shares redeemed | (1,134 | ) | (13,882 | ) | (1,390 | ) | (15,255 | ) | ||||
Net increase (decrease) | (952 | ) | (11,694 | ) | (912 | ) | (10,015 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 130 | 1,537 | 353 | 3,795 | ||||||||
Proceeds from reinvestment of distributions | 42 | 489 | 53 | 569 | ||||||||
Payments for shares redeemed | (658 | ) | (7,725 | ) | (1,113 | ) | (12,030 | ) | ||||
Net increase (decrease) | (486 | ) | (5,699 | ) | (707 | ) | (7,666 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 105 | 1,223 | 224 | 2,366 | ||||||||
Proceeds from reinvestment of distributions | 31 | 361 | 34 | 362 | ||||||||
Payments for shares redeemed | (325 | ) | (3,821 | ) | (1,059 | ) | (11,256 | ) | ||||
Net increase (decrease) | (189 | ) | (2,237 | ) | (801 | ) | (8,528 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 1,196 | 14,471 | 2,398 | 26,428 | ||||||||
Proceeds from reinvestment of distributions | 189 | 2,281 | 210 | 2,318 | ||||||||
Payments for shares redeemed | (4,243 | ) | (50,691 | ) | (4,406 | ) | (48,379 | ) | ||||
Net increase (decrease) | (2,858 | ) | (33,939 | ) | (1,798 | ) | (19,633 | ) | ||||
Total increase (decrease) | (7,576 | ) | $ | (87,952 | ) | (11,306 | ) | $ | (119,442 | ) |
See accompanying notes which are an integral part of the financial statements.
96 Equity Growth Strategy Fund
(This page intentionally left blank)
Russell Investment Company
Equity Growth Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 11.48 | .14 | 1.12 | 1.26 | (.20 | ) | — | |||||||||
October 31, 2016 | 11.26 | .20 | .19 | .39 | (.17 | ) | — | |||||||||
October 31, 2015 | 11.75 | .32 | (.53 | ) | (.21 | ) | (.26 | ) | (.02 | ) | ||||||
October 31, 2014 | 11.24 | .26 | .49 | .75 | (.24 | ) | — | |||||||||
October 31, 2013 | 9.50 | .12 | 1.75 | 1.87 | (.13 | ) | — | |||||||||
October 31, 2012 | 8.93 | .15 | .54 | .69 | (.12 | ) | — | |||||||||
Class C | ||||||||||||||||
April 30, 2017* | 10.34 | .06 | 1.04 | 1.10 | (.16 | ) | — | |||||||||
October 31, 2016 | 10.17 | .07 | .20 | .27 | (.10 | ) | — | |||||||||
October 31, 2015 | 10.64 | .17 | (.43 | ) | (.26 | ) | (.20 | ) | (.01 | ) | ||||||
October 31, 2014 | 10.23 | .14 | .46 | .60 | (.19 | ) | — | |||||||||
October 31, 2013 | 8.69 | .04 | 1.59 | 1.63 | (.09 | ) | — | |||||||||
October 31, 2012 | 8.21 | .07 | .51 | .58 | (.10 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 11.22 | .17 | 1.07 | 1.24 | (.20 | ) | — | |||||||||
October 31, 2016 | 11.01 | .21 | .17 | .38 | (.17 | ) | — | |||||||||
October 31, 2015 | 11.49 | .34 | (.54 | ) | (.20 | ) | (.26 | ) | (.02 | ) | ||||||
October 31, 2014 | 10.99 | .26 | .48 | .74 | (.24 | ) | — | |||||||||
October 31, 2013 | 9.30 | .13 | 1.69 | 1.82 | (.13 | ) | — | |||||||||
October 31, 2012 | 8.75 | .14 | .53 | .67 | (.12 | ) | — | |||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 11.54 | .17 | 1.12 | 1.29 | (.22 | ) | — | |||||||||
October 31, 2016 | 11.32 | .25 | .18 | .43 | (.21 | ) | — | |||||||||
October 31, 2015 | 11.81 | .44 | (.60 | ) | (.16 | ) | (.31 | ) | (.02 | ) | ||||||
October 31, 2014 | 11.29 | .34 | .46 | .80 | (.28 | ) | — | |||||||||
October 31, 2013 | 9.53 | .15 | 1.77 | 1.92 | (.16 | ) | — | |||||||||
October 31, 2012 | 8.95 | .18 | .55 | .73 | (.15 | ) | — | |||||||||
Class R4(1) | ||||||||||||||||
April 30, 2017* | 11.26 | .14 | 1.10 | 1.24 | (.20 | ) | — | |||||||||
October 31, 2016 | 11.05 | .20 | .19 | .39 | (.18 | ) | — | |||||||||
October 31, 2015 | 11.53 | .34 | (.52 | ) | (.18 | ) | (.28 | ) | (.02 | ) | ||||||
October 31, 2014 | 11.03 | .30 | .45 | .75 | (.25 | ) | — | |||||||||
October 31, 2013 | 9.32 | .14 | 1.71 | 1.85 | (.14 | ) | — | |||||||||
October 31, 2012 | 8.77 | .16 | .52 | .68 | (.13 | ) | — | |||||||||
Class R5(2) | ||||||||||||||||
April 30, 2017* | 11.13 | .12 | 1.09 | 1.21 | (.19 | ) | — | |||||||||
October 31, 2016 | 10.92 | .17 | .19 | .36 | (.15 | ) | — | |||||||||
October 31, 2015 | 11.40 | .32 | (.53 | ) | (.21 | ) | (.25 | ) | (.02 | ) | ||||||
October 31, 2014 | 10.91 | .26 | .45 | .71 | (.22 | ) | — | |||||||||
October 31, 2013 | 9.23 | .11 | 1.69 | 1.80 | (.12 | ) | — | |||||||||
October 31, 2012 | 8.68 | .16 | .51 | .67 | (.12 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 11.52 | .15 | 1.13 | 1.28 | (.21 | ) | — | |||||||||
October 31, 2016 | 11.30 | .23 | .19 | .42 | (.20 | ) | — | |||||||||
October 31, 2015 | 11.79 | .33 | (.51 | ) | (.18 | ) | (.29 | ) | (.02 | ) | ||||||
October 31, 2014 | 11.27 | .30 | .48 | .78 | (.26 | ) | — | |||||||||
October 31, 2013 | 9.52 | .15 | 1.75 | 1.90 | (.15 | ) | — | |||||||||
October 31, 2012 | 8.95 | .17 | .54 | .71 | (.14 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
98 Equity Growth Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.20 | ) | 12.54 | 11.02 | 193,100 | .75 | .57 | 1.16 | 9 | |||||||||
(.17 | ) | 11.48 | 3.56 | 182,586 | .74 | .57 | 1.82 | 16 | |||||||||
(.28 | ) | 11.26 | (1.80 | ) | 206,436 | .73 | .56 | 2.72 | 47 | ||||||||
(.24 | ) | 11.75 | 6.70 | 233,233 | .72 | .56 | 2.28 | 23 | |||||||||
(.13 | ) | 11.24 | 19.86 | 241,814 | .71 | .57 | 1.17 | 14 | |||||||||
(.12 | ) | 9.50 | 7.90 | 218,585 | .71 | .56 | 1.61 | 24 | |||||||||
(.16 | ) | 11.28 | 10.68 | 237,579 | 1.50 | 1.32 | .58 | 9 | |||||||||
(.10 | ) | 10.34 | 2.72 | 242,007 | 1.49 | 1.32 | .73 | 16 | |||||||||
(.21 | ) | 10.17 | (2.51 | ) | 280,881 | 1.48 | 1.31 | 1.60 | 47 | ||||||||
(.19 | ) | 10.64 | 5.87 | 327,125 | 1.47 | 1.31 | 1.37 | 23 | |||||||||
(.09 | ) | 10.23 | 18.95 | 331,940 | 1.46 | 1.32 | .42 | 14 | |||||||||
(.10 | ) | 8.69 | 7.12 | 311,910 | 1.46 | 1.31 | .86 | 24 | |||||||||
(.20 | ) | 12.26 | 11.09 | 3,470 | .75 | .57 | 1.44 | 9 | |||||||||
(.17 | ) | 11.22 | 3.52 | 5,873 | .74 | .57 | 1.91 | 16 | |||||||||
(.28 | ) | 11.01 | (1.78 | ) | 10,665 | .73 | .56 | 3.01 | 47 | ||||||||
(.24 | ) | 11.49 | 6.76 | 23,055 | .72 | .56 | 2.35 | 23 | |||||||||
(.13 | ) | 10.99 | 19.74 | 29,977 | .72 | .57 | 1.29 | 14 | |||||||||
(.12 | ) | 9.30 | 7.84 | 42,548 | .71 | .56 | 1.60 | 24 | |||||||||
(.22 | ) | 12.61 | 11.23 | 15,228 | .50 | .24 | 1.41 | 9 | |||||||||
(.21 | ) | 11.54 | 3.88 | 24,918 | .49 | .24 | 2.26 | 16 | |||||||||
(.33 | ) | 11.32 | (1.45 | ) | 34,770 | .48 | .21 | 3.81 | 47 | ||||||||
(.28 | ) | 11.81 | 7.17 | 66,147 | .47 | .17 | 2.97 | 23 | |||||||||
(.16 | ) | 11.29 | 20.37 | 87,682 | .46 | .17 | 1.40 | 14 | |||||||||
(.15 | ) | 9.53 | 8.29 | 64,614 | .46 | .14 | 1.95 | 24 | |||||||||
(.20 | ) | 12.30 | 11.10 | 27,891 | .75 | .49 | 1.19 | 9 | |||||||||
(.18 | ) | 11.26 | 3.63 | 31,006 | .74 | .49 | 1.87 | 16 | |||||||||
(.30 | ) | 11.05 | (1.66 | ) | 38,243 | .73 | .46 | 3.02 | 47 | ||||||||
(.25 | ) | 11.53 | 6.87 | 57,343 | .72 | .42 | 2.61 | 23 | |||||||||
(.14 | ) | 11.03 | 20.07 | 92,890 | .71 | .42 | 1.34 | 14 | |||||||||
(.13 | ) | 9.32 | 7.94 | 88,307 | .71 | .39 | 1.83 | 24 | |||||||||
(.19 | ) | 12.15 | 10.92 | 22,040 | 1.00 | .74 | 1.04 | 9 | |||||||||
(.15 | ) | 11.13 | 3.40 | 22,283 | .99 | .74 | 1.60 | 16 | |||||||||
(.27 | ) | 10.92 | (1.94 | ) | 30,620 | .98 | .71 | 2.87 | 47 | ||||||||
(.22 | ) | 11.40 | 6.61 | 53,253 | .97 | .67 | 2.34 | 23 | |||||||||
(.12 | ) | 10.91 | 19.71 | 70,233 | .97 | .67 | 1.14 | 14 | |||||||||
(.12 | ) | 9.23 | 7.81 | 78,384 | .96 | .64 | 1.78 | 24 | |||||||||
(.21 | ) | 12.59 | 11.20 | 138,988 | .50 | .32 | 1.24 | 9 | |||||||||
(.20 | ) | 11.52 | 3.81 | 160,083 | .49 | .32 | 2.08 | 16 | |||||||||
(.31 | ) | 11.30 | (1.54 | ) | 177,374 | .48 | .31 | 2.84 | 47 | ||||||||
(.26 | ) | 11.79 | 7.04 | 179,424 | .47 | .31 | 2.56 | 23 | |||||||||
(.15 | ) | 11.27 | 20.15 | 190,902 | .46 | .32 | 1.46 | 14 | |||||||||
(.14 | ) | 9.52 | 8.06 | 192,200 | .47 | .31 | 1.82 | 24 |
See accompanying notes which are an integral part of the financial statements.
Equity Growth Strategy Fund 99
Russell Investment Company
Equity Growth Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Advisory fees | $ | 10,540 |
Administration fees | 22,317 | |
Distribution fees | 190,626 | |
Shareholder servicing fees | 59,917 | |
Transfer agent fees | 100,549 | |
Trustee fees | 3,339 | |
$ | 387,288 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 19,594 | $ | 513 | $ | 1,644 | $ | (53 | ) $ | (59 | ) $ | 18,351 | $ | — | — | |||||
Global Infrastructure Fund | 19,713 | 913 | 2,622 | 232 | 535 | 18,771 | 334 | 549 | ||||||||||||
Global Real Estate Securities Fund | 12,353 | 1,162 | 1,603 | 31 | (708 | ) | 11,235 | 404 | 684 | |||||||||||
Select U.S. Equity Fund | 66,451 | 11,377 | 11,388 | 534 | 7,939 | 74,913 | 542 | — | ||||||||||||
U.S. Defensive Equity Fund | 49,831 | 3,533 | 9,139 | 623 | 968 | 45,816 | 258 | 3,274 | ||||||||||||
U.S. Dynamic Equity Fund | 59,689 | 2,602 | 21,367 | 2,139 | 3,597 | 46,660 | 393 | 2,208 | ||||||||||||
U.S. Small Cap Equity Fund | 71,421 | 1,771 | 13,387 | 494 | 10,961 | 71,260 | 470 | 142 | ||||||||||||
Global Opportunistic Credit Fund | 66,584 | 2,464 | 24,435 | (728 | ) | 793 | 44,678 | 1,604 | — | |||||||||||
Unconstrained Total Return Fund | 10,032 | 19,868 | 1,505 | (4 | ) | (27 | ) | 28,364 | 290 | 24 | ||||||||||
Emerging Markets Fund | 79,630 | 1,973 | 12,899 | 5,773 | 1,316 | 75,793 | 947 | — | ||||||||||||
Global Equity Fund | 106,754 | 8,964 | 16,975 | 703 | 3,461 | 102,907 | 1,638 | 6,492 | ||||||||||||
Select International Equity Fund | 86,804 | 2,276 | 12,901 | (926 | ) | 7,628 | 82,881 | 1,942 | — | |||||||||||
U.S. Cash Management Fund | 10,498 | 28,533 | 32,864 | 1 | (2 | ) | 6,166 | 25 | — | |||||||||||
$ | 659,354 | $ | 85,949 | $ | 162,729 | $ | 8,819 | $ | 36,402 | $ | 627,795 | $ | 8,847 | $ | 13,373 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 585,114,444 | |||
Unrealized Appreciation | $ | 60,250,254 | |||
Unrealized Depreciation | (16,910,879 | ) | |||
Net Unrealized Appreciation (Depreciation) | $ | 43,339,375 |
See accompanying notes which are an integral part of the financial statements.
100 Equity Growth Strategy Fund
Russell Investment Company
2020 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including distribution (12b-1) and/or service fees and other | Performance (5% | |||||
Fund expenses. The Example is intended to help you understand | Actual | return before | ||||
your ongoing costs (in dollars) of investing in the Fund and to | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
compare these costs with the ongoing costs of investing in other | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
mutual funds. The Example is based on an investment of $1,000 | Ending Account Value | |||||
invested at the beginning of the period and held for the entire | April 30, 2017 | $ | 1,043.10 | $ | 1,023.55 | |
period indicated, which for this Fund is from November 1, 2016 | Expenses Paid During Period* | $ | 1.27 | $ | 1.25 | |
to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class E | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,043.90 | $ | 1,023.55 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 1.27 | $ | 1.25 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class R1 | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,044.60 | $ | 1,024.79 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | — | $ | — | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * There were no expenses charged to the Class. |
2020 Strategy Fund 101
Russell Investment Company
2020 Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R4 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,043.30 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.27 | $ | 1.25 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). | |||||
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R5 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,041.90 | $ | 1,022.32 | |
Expenses Paid During Period* | $ | 2.53 | $ | 2.51 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). | |||||
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class S | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,044.60 | $ | 1,024.79 | |
Expenses Paid During Period* | $ | — | $ | — | |
* There were no expenses charged to the Class. |
102 2020 Strategy Fund
Russell Investment Company
2020 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 6.3% | ||||
Commodity Strategies Fund Class Y | 206,952 | 1,130 | ||
Global Infrastructure Fund Class Y | 96,378 | 1,146 | ||
Global Real Estate Securities Fund Class Y | 27,689 | 934 | ||
3,210 | ||||
Domestic Equities - 15.0% | ||||
Select U.S. Equity Fund Class Y | 413,032 | 5,097 | ||
U.S. Defensive Equity Fund Class Y | 25,376 | 1,288 | ||
U.S. Dynamic Equity Fund Class Y | 4,188 | 46 | ||
U.S. Small Cap Equity Fund Class Y | 37,064 | 1,193 | ||
7,624 | ||||
Fixed Income - 61.0% | ||||
Global Opportunistic Credit Fund Class Y | 82,999 | 815 | ||
Investment Grade Bond Fund Class Y | 349,433 | 7,411 | ||
Short Duration Bond Fund Class Y | 260,350 | 4,991 | ||
Strategic Bond Fund Class Y | 1,685,213 | 17,830 | ||
31,047 | ||||
International Equities - 17.7% | ||||
Emerging Markets Fund Class Y | 78,914 | 1,441 | ||
Global Equity Fund Class Y | 243,750 | 2,632 | ||
Select International Equity Fund Class Y | 532,106 | 4,949 | ||
9,022 | ||||
Total Investments in Affiliated Funds | ||||
(cost $43,600) | 50,903 | |||
Total Investments 100.0% | ||||
(identified cost $43,600) | 50,903 | |||
Other Assets and Liabilities, Net - (0.0%) | (5 | ) | ||
Net Assets - 100.0% | 50,898 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 50,903 | $ | — | $ | — | $ | — | $ | 50,903 | 100.0 | ||||
Total Investments | 50,903 | — | — | — | 50,903 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 | |||||||||||||||
* Less than 0.05% of net assets. |
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
2020 Strategy Fund 103
Russell Investment Company
2020 Strategy Fund
be
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 43,600 |
Investments, at fair value(>) | 50,903 | |
Receivables: | ||
Investments sold | 201 | |
Fund shares sold | 21 | |
Total assets | 51,125 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 221 | |
Accrued fees to affiliates | 6 | |
Total liabilities | 227 | |
Net Assets | $ | 50,898 |
Net Assets Consist of: | ||
Accumulated net realized gain (loss) | $ | 818 |
Unrealized appreciation (depreciation) on investments | 7,303 | |
Shares of beneficial interest | 67 | |
Additional paid-in capital | 42,710 | |
Net Assets | $ | 50,898 |
Net Asset Value, offering and redemption price per share: | ||
Net asset value per share: Class A(#) | $ | 7.64 |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 8.11 |
Class A — Net assets | $ | 163,410 |
Class A — Shares outstanding ($.01 par value) | 21,378 | |
Net asset value per share: Class E(#) | $ | 7.66 |
Class E — Net assets | $ | 694,295 |
Class E — Shares outstanding ($.01 par value) | 90,615 | |
Net asset value per share: Class R1(#) | $ | 7.63 |
Class R1 — Net assets | $ | 27,014,761 |
Class R1 — Shares outstanding ($.01 par value) | 3,539,130 | |
Net asset value per share: Class R4(#) | $ | 7.63 |
Class R4 — Net assets | $ | 8,743,024 |
Class R4 — Shares outstanding ($.01 par value) | 1,145,664 | |
Net asset value per share: Class R5(#) | $ | 7.62 |
Class R5 — Net assets | $ | 9,588,162 |
Class R5 — Shares outstanding ($.01 par value) | 1,257,980 | |
Net asset value per share: Class S(#) | $ | 7.63 |
Class S — Net assets | $ | 4,694,036 |
Class S — Shares outstanding ($.01 par value) | 614,882 | |
Amounts in thousands | ||
(>) Investments in affiliated funds | $ | 50,903 |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
104 2020 Strategy Fund
Russell Investment Company
2020 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 1,231 | |
Expenses | |||
Distribution fees - Class A | —** | ||
Distribution fees - Class R5 | 12 | ||
Shareholder servicing fees - Class E | 1 | ||
Shareholder servicing fees - Class R4 | 12 | ||
Shareholder servicing fees - Class R5 | 12 | ||
Total expenses | 37 | ||
Net investment income (loss) | 1,194 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 1,036 | ||
Capital gain distributions from affiliated funds | 539 | ||
Net realized gain (loss) | 1,575 | ||
Net change in unrealized appreciation (depreciation) on investments | (431 | ) | |
Net realized and unrealized gain (loss) | 1,144 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 2,338 | |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
2020 Strategy Fund 105
Russell Investment Company
2020 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 1,194 | $ | 1,769 | ||
Net realized gain (loss) | 1,575 | 2,077 | ||||
Net change in unrealized appreciation (depreciation) | (431 | ) | (1,468 | ) | ||
Net increase (decrease) in net assets from operations | 2,338 | 2,378 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (4 | ) | (5 | ) | ||
Class E | (20 | ) | (50 | ) | ||
Class R1 | (665 | ) | (995 | ) | ||
Class R4 | (197 | ) | (244 | ) | ||
Class R5 | (200 | ) | (331 | ) | ||
Class S | (108 | ) | (156 | ) | ||
From net realized gain | ||||||
Class A | (8 | ) | (19 | ) | ||
Class E | (39 | ) | (179 | ) | ||
Class R1 | (1,203 | ) | (3,345 | ) | ||
Class R4 | (376 | ) | (841 | ) | ||
Class R5 | (406 | ) | (1,340 | ) | ||
Class S | (195 | ) | (517 | ) | ||
Net decrease in net assets from distributions | (3,421 | ) | (8,022 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (6,583 | ) | (8,279 | ) | ||
Total Net Increase (Decrease) in Net Assets | (7,666 | ) | (13,923 | ) | ||
Net Assets | ||||||
Beginning of period | 58,564 | 72,487 | ||||
End of period | $ | 50,898 | $ | 58,564 |
See accompanying notes which are an integral part of the financial statements.
106 2020 Strategy Fund
Russell Investment Company
2020 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | — | $ | — | — | $ | — | ||||||
Proceeds from reinvestment of distributions | 2 | 12 | 3 | 24 | ||||||||
Payments for shares redeemed | (6 | ) | (44 | ) | (7 | ) | (60 | ) | ||||
Net increase (decrease) | (4 | ) | (32 | ) | (4 | ) | (36 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 6 | 47 | 8 | 58 | ||||||||
Proceeds from reinvestment of distributions | 8 | 59 | 31 | 229 | ||||||||
Payments for shares redeemed | (164 | ) | (1,270 | ) | (27 | ) | (200 | ) | ||||
Net increase (decrease) | (150 | ) | (1,164 | ) | 12 | 87 | ||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 318 | 2,402 | 775 | 6,095 | ||||||||
Proceeds from reinvestment of distributions | 253 | 1,862 | 579 | 4,329 | ||||||||
Payments for shares redeemed | (888 | ) | (6,710 | ) | (2,023 | ) | (15,764 | ) | ||||
Net increase (decrease) | (317 | ) | (2,446 | ) | (669 | ) | (5,340 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 75 | 566 | 185 | 1,426 | ||||||||
Proceeds from reinvestment of distributions | 78 | 572 | 145 | 1,086 | ||||||||
Payments for shares redeemed | (268 | ) | (2,025 | ) | (168 | ) | (1,325 | ) | ||||
Net increase (decrease) | (115 | ) | (887 | ) | 162 | 1,187 | ||||||
Class R5 | ||||||||||||
Proceeds from shares sold | 215 | 1,619 | 379 | 2,899 | ||||||||
Proceeds from reinvestment of distributions | 83 | 606 | 224 | 1,671 | ||||||||
Payments for shares redeemed | (524 | ) | (3,970 | ) | (1,036 | ) | (8,086 | ) | ||||
Net increase (decrease) | (226 | ) | (1,745 | ) | (433 | ) | (3,516 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 62 | 465 | 154 | 1,187 | ||||||||
Proceeds from reinvestment of distributions | 41 | 303 | 90 | 672 | ||||||||
Payments for shares redeemed | (142 | ) | (1,077 | ) | (323 | ) | (2,520 | ) | ||||
Net increase (decrease) | (39 | ) | (309 | ) | (79 | ) | (661 | ) | ||||
Total increase (decrease) | (851 | ) | $ | (6,583 | ) | (1,011 | ) | $ | (8,279 | ) |
See accompanying notes which are an integral part of the financial statements.
2020 Strategy Fund 107
Russell Investment Company
2020 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | |||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class A | |||||||||||||||
April 30, 2017* | 7.80 | .18 | .14 | .32 | (.17 | ) | (.31 | ) | |||||||
October 31, 2016 | 8.51 | .20 | .09 | .29 | (.22 | ) | (.78 | ) | |||||||
October 31, 2015 | 12.11 | .28 | (.21 | ) | .07 | (.25 | ) | (3.42 | ) | ||||||
October 31, 2014 | 11.92 | .27 | .37 | .64 | (.22 | ) | (.23 | ) | |||||||
October 31, 2013 | 11.17 | .24 | .80 | 1.04 | (.29 | ) | — | ||||||||
October 31, 2012 | 10.55 | .32 | .54 | .86 | (.24 | ) | — | ||||||||
Class E | |||||||||||||||
April 30, 2017* | 7.81 | .16 | .16 | .32 | (.16 | ) | (.31 | ) | |||||||
October 31, 2016 | 8.52 | .21 | .08 | .29 | (.22 | ) | (.78 | ) | |||||||
October 31, 2015 | 12.13 | .21 | (.14 | ) | .07 | (.26 | ) | (3.42 | ) | ||||||
October 31, 2014 | 11.94 | .22 | .42 | .64 | (.22 | ) | (.23 | ) | |||||||
October 31, 2013 | 11.19 | .30 | .74 | 1.04 | (.29 | ) | — | ||||||||
October 31, 2012 | 10.57 | .25 | .62 | .87 | (.25 | ) | — | ||||||||
Class R1 | |||||||||||||||
April 30, 2017* | 7.79 | .17 | .15 | .32 | (.17 | ) | (.31 | ) | |||||||
October 31, 2016 | 8.50 | .23 | .08 | .31 | (.24 | ) | (.78 | ) | |||||||
October 31, 2015 | 12.11 | .23 | (.14 | ) | .09 | (.28 | ) | (3.42 | ) | ||||||
October 31, 2014 | 11.93 | .27 | .39 | .66 | (.25 | ) | (.23 | ) | |||||||
October 31, 2013 | 11.18 | .34 | .73 | 1.07 | (.32 | ) | — | ||||||||
October 31, 2012 | 10.56 | .27 | .63 | .90 | (.28 | ) | — | ||||||||
Class R4(1) | |||||||||||||||
April 30, 2017* | 7.79 | .16 | .15 | .31 | (.16 | ) | (.31 | ) | |||||||
October 31, 2016 | 8.50 | .20 | .09 | .29 | (.22 | ) | (.78 | ) | |||||||
October 31, 2015 | 12.11 | .22 | (.15 | ) | .07 | (.26 | ) | (3.42 | ) | ||||||
October 31, 2014 | 11.92 | .22 | .42 | .64 | (.22 | ) | (.23 | ) | |||||||
October 31, 2013 | 11.17 | .30 | .74 | 1.04 | (.29 | ) | — | ||||||||
October 31, 2012 | 10.54 | .27 | .60 | .87 | (.24 | ) | — | ||||||||
Class R5(2) | |||||||||||||||
April 30, 2017* | 7.78 | .16 | .15 | .31 | (.16 | ) | (.31 | ) | |||||||
October 31, 2016 | 8.49 | .19 | .08 | .27 | (.20 | ) | (.78 | ) | |||||||
October 31, 2015 | 12.08 | .22 | (.16 | ) | .06 | (.23 | ) | (3.42 | ) | ||||||
October 31, 2014 | 11.90 | .21 | .39 | .60 | (.19 | ) | (.23 | ) | |||||||
October 31, 2013 | 11.15 | .27 | .74 | 1.01 | (.26 | ) | — | ||||||||
October 31, 2012 | 10.52 | .23 | .62 | .85 | (.22 | ) | — | ||||||||
Class S | |||||||||||||||
April 30, 2017* | 7.79 | .17 | .16 | .33 | (.18 | ) | (.31 | ) | |||||||
October 31, 2016 | 8.50 | .23 | .08 | .31 | (.24 | ) | (.78 | ) | |||||||
October 31, 2015 | 12.11 | .25 | (.16 | ) | .09 | (.28 | ) | (3.42 | ) | ||||||
October 31, 2014 | 11.93 | .28 | .38 | .66 | (.25 | ) | (.23 | ) | |||||||
October 31, 2013 | 11.18 | .32 | .75 | 1.07 | (.32 | ) | — | ||||||||
October 31, 2012 | 10.56 | .27 | .63 | .90 | (.28 | ) | — | ||||||||
See accompanying notes which are an integral part of the financial statements.
108 2020 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
$ | Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||
Total | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.48 | ) | 7.64 | 4.31 | 164 | .25 | .25 | 2.36 | 18 | |||||||||
(1.00 | ) | 7.80 | 4.00 | 200 | .25 | .25 | 2.58 | 28 | |||||||||
(3.67 | ) | 8.51 | .59 | 253 | .25 | .25 | 3.03 | 28 | |||||||||
(.45 | ) | 12.11 | 5.48 | 540 | .25 | .25 | 2.24 | 42 | |||||||||
(.29 | ) | 11.92 | 9.52 | 1,460 | .25 | .25 | 2.11 | 15 | |||||||||
(.24 | ) | 11.17 | 8.33 | 902 | .25 | .25 | 3.02 | 21 | |||||||||
(.47 | ) | 7.66 | 4.39 | 694 | .25 | .25 | 2.05 | 18 | |||||||||
(1.00 | ) | 7.81 | 4.00 | 1,875 | .25 | .25 | 2.66 | 28 | |||||||||
(3.68 | ) | 8.52 | .52 | 1,947 | .25 | .25 | 2.37 | 28 | |||||||||
(.45 | ) | 12.13 | 5.52 | 2,312 | .25 | .25 | 1.80 | 42 | |||||||||
(.29 | ) | 11.94 | 9.48 | 2,240 | .25 | .25 | 2.62 | 15 | |||||||||
(.25 | ) | 11.19 | 8.39 | 2,380 | .25 | .25 | 2.30 | 21 | |||||||||
(.48 | ) | 7.63 | 4.46 | 27,015 | — | — | 2.27 | 18 | |||||||||
(1.02 | ) | 7.79 | 4.28 | 30,034 | — | — | 2.97 | 28 | |||||||||
(3.70 | ) | 8.50 | .78 | 38,455 | — | — | 2.56 | 28 | |||||||||
(.48 | ) | 12.11 | 5.70 | 51,257 | — | — | 2.24 | 42 | |||||||||
(.32 | ) | 11.93 | 9.77 | 92,947 | — | — | 2.95 | 15 | |||||||||
(.28 | ) | 11.18 | 8.68 | 121,239 | — | — | 2.51 | 21 | |||||||||
(.47 | ) | 7.63 | 4.33 | 8,743 | .25 | .25 | 2.15 | 18 | |||||||||
(1.00 | ) | 7.79 | 4.02 | 9,819 | .25 | .25 | 2.56 | 28 | |||||||||
(3.68 | ) | 8.50 | .52 | 9,340 | .25 | .25 | 2.41 | 28 | |||||||||
(.45 | ) | 12.11 | 5.51 | 12,844 | .25 | .25 | 1.82 | 42 | |||||||||
(.29 | ) | 11.92 | 9.48 | 17,172 | .25 | .25 | 2.65 | 15 | |||||||||
(.24 | ) | 11.17 | 8.46 | 24,126 | .25 | .25 | 2.55 | 21 | |||||||||
(.47 | ) | 7.62 | 4.19 | 9,588 | .50 | .50 | 2.06 | 18 | |||||||||
(.98 | ) | 7.78 | 3.74 | 11,544 | .50 | .50 | 2.48 | 28 | |||||||||
(3.65 | ) | 8.49 | .38 | 16,269 | .50 | .50 | 2.37 | 28 | |||||||||
(.42 | ) | 12.08 | 5.15 | 37,373 | .50 | .50 | 1.73 | 42 | |||||||||
(.26 | ) | 11.90 | 9.23 | 59,271 | .50 | .50 | 2.38 | 15 | |||||||||
(.22 | ) | 11.15 | 8.19 | 67,605 | .50 | .50 | 2.17 | 21 | |||||||||
(.49 | ) | 7.63 | 4.46 | 4,694 | — | — | 2.22 | 18 | |||||||||
(1.02 | ) | 7.79 | 4.28 | 5,092 | — | — | 2.96 | 28 | |||||||||
(3.70 | ) | 8.50 | .78 | 6,223 | — | — | 2.78 | 28 | |||||||||
(.48 | ) | 12.11 | 5.70 | 10,187 | — | — | 2.32 | 42 | |||||||||
(.32 | ) | 11.93 | 9.77 | 20,550 | — | — | 2.80 | 15 | |||||||||
(.28 | ) | 11.18 | 8.68 | 22,285 | — | — | 2.53 | 21 |
See accompanying notes which are an integral part of the financial statements.
2020 Strategy Fund 109
Russell Investment Company
2020 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 2,011 |
Shareholder servicing fees | 3,945 | |
$ | 5,956 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 1,318 | $ | 144 | $ | 330 | $ | (183 | ) $ | 181 | $ | 1,130 | $ | — | $ | — | ||||
Global Infrastructure Fund | 1,183 | 251 | 337 | (25 | ) | 74 | 1,146 | 20 | 32 | |||||||||||
Global Real Estate Securities Fund | 890 | 357 | 271 | 2 | (44 | ) | 934 | 29 | 47 | |||||||||||
Select U.S. Equity Fund | 7,173 | 380 | 3,261 | 442 | 363 | 5,097 | 49 | — | ||||||||||||
U.S. Defensive Equity Fund | 1,493 | 178 | 431 | 170 | (122 | ) | 1,288 | 7 | 96 | |||||||||||
U.S. Dynamic Equity Fund | 952 | 71 | 1,052 | 119 | (44 | ) | 46 | 6 | 35 | |||||||||||
U.S. Small Cap Equity Fund | 1,510 | 154 | 709 | 334 | (96 | ) | 1,193 | 10 | 3 | |||||||||||
Global Opportunistic Credit Fund | 1,891 | 130 | 1,194 | (31 | ) | 19 | 815 | 42 | — | |||||||||||
Investment Grade Bond Fund | 6,825 | 2,354 | 1,448 | (25 | ) | (295 | ) | 7,411 | 249 | 20 | ||||||||||
Short Duration Bond Fund | 5,918 | 894 | 1,787 | (15 | ) | (19 | ) | 4,991 | 49 | — | ||||||||||
Strategic Bond Fund | 19,475 | 2,923 | 3,743 | 126 | (951 | ) | 17,830 | 587 | 109 | |||||||||||
Emerging Markets Fund | 1,317 | 514 | 515 | 81 | 44 | 1,441 | 16 | — | ||||||||||||
Global Equity Fund | 3,269 | 385 | 1,124 | 175 | (73 | ) | 2,632 | 50 | 197 | |||||||||||
Select International Equity Fund | 5,331 | 905 | 1,685 | (134 | ) | 532 | 4,949 | 117 | — | |||||||||||
$ | 58,545 | $ | 9,640 | $ | 17,887 | $ | 1,036 | $ | (431 | ) $ | 50,903 | $ | 1,231 | $ | 539 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 44,439,977 | ||
Unrealized Appreciation | $ | 7,106,340 | ||
Unrealized Depreciation | (643,662 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 6,462,678 |
See accompanying notes which are an integral part of the financial statements.
110 2020 Strategy Fund
Russell Investment Company
2025 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur ongoing costs, including | addition, if these transactional costs were included, your costs | |||||
distribution (12b-1) and/or service fees and other Fund expenses. | would have been higher. | |||||
The Example is intended to help you understand your ongoing | Hypothetical | |||||
costs (in dollars) of investing in the Fund and to compare these | Performance (5% | |||||
costs with the ongoing costs of investing in other mutual funds. | Actual | return before | ||||
The Example is based on an investment of $1,000 invested at the | Class R1 | Performance | expenses) | |||
Beginning Account Value | ||||||
beginning of the period and held for the entire period indicated, | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
which for this Fund is from November 1, 2016 to April 30, 2017. | Ending Account Value | |||||
April 30, 2017 | $ | 1,059.20 | $ | 1,024.79 | ||
Actual Expenses | Expenses Paid During Period* | $ | — | $ | — | |
The information in the table under the heading “Actual | ||||||
Performance” provides information about actual account values | * There were no expenses charged to the Class. | |||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
Class R4 | Performance | expenses) | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,056.50 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.27 | $ | 1.25 | ||
Hypothetical Example for Comparison Purposes | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | ||||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). | |||||
based on the Fund’s actual expense ratio and an assumed rate of | ||||||
Hypothetical | ||||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
actual return. The hypothetical account values and expenses | Actual | return before | ||||
may not be used to estimate the actual ending account balance or | Class R5 | Performance | expenses) | |||
expenses you paid for the period. You may use this information | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
funds. To do so, compare this 5% hypothetical example with the | April 30, 2017 | $ | 1,055.40 | $ | 1,022.32 | |
5% hypothetical examples that appear in the shareholder reports | Expenses Paid During Period* | $ | 2.55 | $ | 2.51 | |
of other funds. | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
2025 Strategy Fund 111
Russell Investment Company
2025 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 6.8% | ||||
Commodity Strategies Fund Class Y | 119,987 | 655 | ||
Global Infrastructure Fund Class Y | 56,124 | 667 | ||
Global Real Estate Securities Fund Class Y | 16,243 | 548 | ||
1,870 | ||||
Domestic Equities - 19.3% | ||||
Select U.S. Equity Fund Class Y | 281,923 | 3,480 | ||
U.S. Defensive Equity Fund Class Y | 14,388 | 730 | ||
U.S. Dynamic Equity Fund Class Y | 14,991 | 164 | ||
U.S. Small Cap Equity Fund Class Y | 30,668 | 987 | ||
5,361 | ||||
Fixed Income - 50.7% | ||||
Global Opportunistic Credit Fund Class Y | 43,796 | 430 | ||
Investment Grade Bond Fund Class Y | 169,833 | 3,602 | ||
Short Duration Bond Fund Class Y | 66,220 | 1,269 | ||
Strategic Bond Fund Class Y | 827,557 | 8,756 | ||
14,057 | ||||
International Equities - 23.2% | ||||
Emerging Markets Fund Class Y | 60,730 | 1,109 | ||
Global Equity Fund Class Y | 173,873 | 1,878 | ||
Select International Equity Fund Class Y | 369,892 | 3,440 | ||
6,427 | ||||
Total Investments in Affiliated Funds | ||||
(cost $24,558) | 27,715 | |||
Total Investments 100.0% | ||||
(identified cost $24,558) | 27,715 | |||
Other Assets and Liabilities, Net - (0.0%) | (4 | ) | ||
Net Assets - 100.0% | 27,711 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 27,715 | $ | — | $ | — | $ | — | $ | 27,715 | 100.0 | ||||
Total Investments | 27,715 | — | — | — | 27,715 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 |
See accompanying notes which are an integral part of the financial statements.
112 2025 Strategy Fund
Russell Investment Company
2025 Strategy Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
* Less than 0.05% of net assets.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
2025 Strategy Fund 113
Russell Investment Company
2025 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 24,558 | |
Investments, at fair value(>) | 27,715 | ||
Receivables: | |||
Fund shares sold | 32 | ||
Total assets | 27,747 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 32 | ||
Accrued fees to affiliates | 4 | ||
Total liabilities | 36 | ||
Net Assets | $ | 27,711 | |
Net Assets Consist of: | |||
Accumulated net realized gain (loss) | $ | (40 | ) |
Unrealized appreciation (depreciation) on investments | 3,157 | ||
Shares of beneficial interest | 33 | ||
Additional paid-in capital | 24,561 | ||
Net Assets | $ | 27,711 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R1(#) | $ | 8.35 | |
Class R1 — Net assets | $ | 15,078,961 | |
Class R1 — Shares outstanding ($.01 par value) | 1,806,768 | ||
Net asset value per share: Class R4(#) | $ | 8.35 | |
Class R4 — Net assets | $ | 7,026,016 | |
Class R4 — Shares outstanding ($.01 par value) | 841,325 | ||
Net asset value per share: Class R5(#) | $ | 8.32 | |
Class R5 — Net assets | $ | 5,606,068 | |
Class R5 — Shares outstanding ($.01 par value) | 673,595 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 27,715 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
114 2025 Strategy Fund
Russell Investment Company
2025 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 587 |
Expenses | ||
Distribution fees - Class R5 | 7 | |
Shareholder servicing fees - Class R4 | 9 | |
Shareholder servicing fees - Class R5 | 7 | |
Total expenses | 23 | |
Net investment income (loss) | 564 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 328 | |
Capital gain distributions from affiliated funds | 298 | |
Net realized gain (loss) | 626 | |
Net change in unrealized appreciation (depreciation) on investments | 345 | |
Net realized and unrealized gain (loss) | 971 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 1,535 |
See accompanying notes which are an integral part of the financial statements.
2025 Strategy Fund 115
Russell Investment Company
2025 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 564 | $ | 748 | ||
Net realized gain (loss) | 626 | 411 | ||||
Net change in unrealized appreciation (depreciation) | 345 | (143 | ) | |||
Net increase (decrease) in net assets from operations | 1,535 | 1,016 | ||||
Distributions | ||||||
From net investment income | ||||||
Class R1 | (314 | ) | (401 | ) | ||
Class R4 | (140 | ) | (194 | ) | ||
Class R5 | (110 | ) | (154 | ) | ||
From net realized gain | ||||||
Class R1 | (300 | ) | (414 | ) | ||
Class R4 | (143 | ) | (226 | ) | ||
Class R5 | (118 | ) | (201 | ) | ||
Net decrease in net assets from distributions | (1,125 | ) | (1,590 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (493 | ) | (3,401 | ) | ||
Total Net Increase (Decrease) in Net Assets | (83 | ) | (3,975 | ) | ||
Net Assets | ||||||
Beginning of period | 27,794 | 31,769 | ||||
End of period | $ | 27,711 | $ | 27,794 |
See accompanying notes which are an integral part of the financial statements.
116 2025 Strategy Fund
Russell Investment Company
2025 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 122 | $ | 1,003 | 368 | $ | 2,999 | ||||||
Proceeds from reinvestment of distributions | 77 | 614 | 103 | 815 | ||||||||
Payments for shares redeemed | (212 | ) | (1,741 | ) | (658 | ) | (5,375 | ) | ||||
Net increase (decrease) | (13 | ) | (124 | ) | (187 | ) | (1,561 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 72 | 592 | 158 | 1,272 | ||||||||
Proceeds from reinvestment of distributions | 36 | 283 | 53 | 420 | ||||||||
Payments for shares redeemed | (141 | ) | (1,164 | ) | (234 | ) | (1,888 | ) | ||||
Net increase (decrease) | (33 | ) | (289 | ) | (23 | ) | (196 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 61 | 500 | 151 | 1,209 | ||||||||
Proceeds from reinvestment of distributions | 29 | 228 | 45 | 355 | ||||||||
Payments for shares redeemed | (100 | ) | (808 | ) | (396 | ) | (3,208 | ) | ||||
Net increase (decrease) | (10 | ) | (80 | ) | (200 | ) | (1,644 | ) | ||||
Total increase (decrease) | (56 | ) | $ | (493 | ) | (410 | ) | $ | (3,401 | ) |
See accompanying notes which are an integral part of the financial statements.
2025 Strategy Fund 117
Russell Investment Company
2025 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | |||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class R1 | |||||||||||||||
April 30, 2017* | 8.23 | .17 | .30 | .47 | (.18 | ) | (.17 | ) | |||||||
October 31, 2016 | 8.39 | .22 | .10 | .32 | (.23 | ) | (.25 | ) | |||||||
October 31, 2015 | 10.67 | .21 | (.15 | ) | .06 | (.25 | ) | (2.09 | ) | ||||||
October 31, 2014 | 10.80 | .25 | .39 | .64 | (.24 | ) | (.53 | ) | |||||||
October 31, 2013 | 10.01 | .28 | .96 | 1.24 | (.26 | ) | (.19 | ) | |||||||
October 31, 2012 | 9.44 | .22 | .61 | .83 | (.23 | ) | (.03 | ) | |||||||
Class R4(1) | |||||||||||||||
April 30, 2017* | 8.24 | .16 | .29 | .45 | (.17 | ) | (.17 | ) | |||||||
October 31, 2016 | 8.40 | .21 | .09 | .30 | (.21 | ) | (.25 | ) | |||||||
October 31, 2015 | 10.67 | .20 | (.15 | ) | .05 | (.23 | ) | (2.09 | ) | ||||||
October 31, 2014 | 10.81 | .19 | .42 | .61 | (.22 | ) | (.53 | ) | |||||||
October 31, 2013 | 10.01 | .23 | 1.00 | 1.23 | (.24 | ) | (.19 | ) | |||||||
October 31, 2012 | 9.44 | .22 | .58 | .80 | (.20 | ) | (.03 | ) | |||||||
Class R5(2) | |||||||||||||||
April 30, 2017* | 8.21 | .16 | .28 | .44 | (.16 | ) | (.17 | ) | |||||||
October 31, 2016 | 8.37 | .19 | .09 | .28 | (.19 | ) | (.25 | ) | |||||||
October 31, 2015 | 10.64 | .19 | (.17 | ) | .02 | (.20 | ) | (2.09 | ) | ||||||
October 31, 2014 | 10.77 | .19 | .40 | .59 | (.19 | ) | (.53 | ) | |||||||
October 31, 2013 | 9.98 | .20 | .99 | 1.19 | (.21 | ) | (.19 | ) | |||||||
October 31, 2012 | 9.41 | .19 | .58 | .77 | (.17 | ) | (.03 | ) | |||||||
See accompanying notes which are an integral part of the financial statements.
118 2025 Strategy Fund
% | % | % | ||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||
Total Distributions | Period | Return(c) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | ||||||||
(.35 | ) | 8.35 | 5.92 | 15,079 | — | — | 2.12 | 17 | ||||||||
(.48 | ) | 8.23 | 4.12 | 14,978 | — | — | 2.75 | 27 | ||||||||
(2.34 | ) | 8.39 | .52 | 16,836 | — | — | 2.35 | 53 | ||||||||
(.77 | ) | 10.67 | 6.23 | 14,573 | — | — | 2.41 | 67 | ||||||||
(.45 | ) | 10.80 | 12.93 | 22,717 | — | — | 2.75 | 28 | ||||||||
(.26 | ) | 10.01 | 9.00 | 34,875 | — | — | 2.32 | 37 | ||||||||
(.34 | ) | 8.35 | 5.65 | 7,026 | .25 | .25 | 1.99 | 17 | ||||||||
(.46 | ) | 8.24 | 3.86 | 7,206 | .25 | .25 | 2.61 | 27 | ||||||||
(2.32 | ) | 8.40 | .37 | 7,540 | .25 | .25 | 2.27 | 53 | ||||||||
(.75 | ) | 10.67 | 5.87 | 7,743 | .25 | .25 | 1.83 | 67 | ||||||||
(.43 | ) | 10.81 | 12.68 | 6,736 | .25 | .25 | 2.20 | 28 | ||||||||
(.23 | ) | 10.01 | 8.67 | 6,235 | .25 | .25 | 2.28 | 37 | ||||||||
(.33 | ) | 8.32 | 5.54 | 5,606 | .50 | .50 | 1.95 | 17 | ||||||||
(.44 | ) | 8.21 | 3.60 | 5,610 | .50 | .50 | 2.39 | 27 | ||||||||
(2.29 | ) | 8.37 | .07 | 7,393 | .50 | .50 | 2.14 | 53 | ||||||||
(.72 | ) | 10.64 | 5.70 | 11,880 | .50 | .50 | 1.84 | 67 | ||||||||
(.40 | ) | 10.77 | 12.41 | 16,585 | .50 | .50 | 1.99 | 28 | ||||||||
(.20 | ) | 9.98 | 8.40 | 14,350 | .50 | .50 | 2.00 | 37 |
See accompanying notes which are an integral part of the financial statements.
2025 Strategy Fund 119
Russell Investment Company
2025 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 1,146 |
Shareholder servicing fees | 2,570 | |
$ | 3,716 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 671 | $ | 86 | $ | 98 | $ | (16 | ) $ | 12 | $ | 655 | $ | — | $ | — | ||||
Global Infrastructure Fund | 606 | 123 | 91 | (7 | ) | 36 | 667 | 10 | 17 | |||||||||||
Global Real Estate Securities Fund | 470 | 172 | 71 | 1 | (24 | ) | 548 | 16 | 25 | |||||||||||
Select U.S. Equity Fund | 4,173 | 140 | 1,321 | 176 | 312 | 3,480 | 30 | — | ||||||||||||
U.S. Defensive Equity Fund | 736 | 72 | 105 | 29 | (2 | ) | 730 | 4 | 49 | |||||||||||
U.S. Dynamic Equity Fund | 635 | 43 | 568 | 57 | (3 | ) | 164 | 4 | 24 | |||||||||||
U.S. Small Cap Equity Fund | 1,065 | 81 | 329 | 102 | 68 | 987 | 7 | 2 | ||||||||||||
Global Opportunistic Credit Fund | 853 | 56 | 475 | (2 | ) | (2 | ) | 430 | 20 | — | ||||||||||
Investment Grade Bond Fund | 2,980 | 989 | 227 | (12 | ) | (128 | ) | 3,602 | 112 | 9 | ||||||||||
Short Duration Bond Fund | 1,213 | 393 | 329 | (1 | ) | (7 | ) | 1,269 | 11 | — | ||||||||||
Strategic Bond Fund | 8,242 | 1,447 | 589 | (16 | ) | (328 | ) | 8,756 | 257 | 47 | ||||||||||
Emerging Markets Fund | 911 | 319 | 215 | 4 | 90 | 1,109 | 11 | — | ||||||||||||
Global Equity Fund | 2,021 | 214 | 427 | 54 | 16 | 1,878 | 32 | 125 | ||||||||||||
Select International Equity Fund | 3,222 | 549 | 595 | (41 | ) | 305 | 3,440 | 73 | — | |||||||||||
$ | 27,798 | $ | 4,684 | $ | 5,440 | $ | 328 | $ | 345 | $ | 27,715 | $ | 587 | $ | 298 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 25,264,585 | ||
Unrealized Appreciation | $ | 2,677,803 | ||
Unrealized Depreciation | (227,634 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 2,450,169 |
See accompanying notes which are an integral part of the financial statements.
120 2025 Strategy Fund
Russell Investment Company
2030 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including distribution (12b-1) and/or service fees and other | Performance (5% | |||||
Fund expenses. The Example is intended to help you understand | Actual | return before | ||||
your ongoing costs (in dollars) of investing in the Fund and to | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
compare these costs with the ongoing costs of investing in other | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
mutual funds. The Example is based on an investment of $1,000 | Ending Account Value | |||||
invested at the beginning of the period and held for the entire | April 30, 2017 | $ | 1,073.60 | $ | 1,023.55 | |
period indicated, which for this Fund is from November 1, 2016 | Expenses Paid During Period* | $ | 1.29 | $ | 1.25 | |
to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class E | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,074.60 | $ | 1,023.55 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 1.29 | $ | 1.25 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class R1 | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,074.40 | $ | 1,024.79 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | — | $ | — | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * There were no expenses charged to the Class. |
2030 Strategy Fund 121
Russell Investment Company
2030 Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R4 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,074.60 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.29 | $ | 1.25 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). | |||||
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R5 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,073.00 | $ | 1,022.32 | |
Expenses Paid During Period* | $ | 2.57 | $ | 2.51 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). | |||||
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class S | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,075.80 | $ | 1,024.79 | |
Expenses Paid During Period* | $ | — | $ | — | |
* There were no expenses charged to the Class. |
122 2030 Strategy Fund
Russell Investment Company
2030 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 7.3% | ||||
Commodity Strategies Fund Class Y | 345,363 | 1,886 | ||
Global Infrastructure Fund Class Y | 162,298 | 1,930 | ||
Global Real Estate Securities Fund Class Y | 45,976 | 1,550 | ||
5,366 | ||||
Domestic Equities - 24.3% | ||||
Select U.S. Equity Fund Class Y | 931,930 | 11,500 | ||
U.S. Defensive Equity Fund Class Y | 39,929 | 2,027 | ||
U.S. Dynamic Equity Fund Class Y | 50,166 | 549 | ||
U.S. Small Cap Equity Fund Class Y | 114,663 | 3,691 | ||
17,767 | ||||
Fixed Income - 38.7% | ||||
Global Opportunistic Credit Fund Class Y | 100,759 | 989 | ||
Investment Grade Bond Fund Class Y | 309,289 | 6,560 | ||
Strategic Bond Fund Class Y | 1,965,098 | 20,791 | ||
28,340 | ||||
International Equities - 29.7% | ||||
Emerging Markets Fund Class Y | 223,358 | 4,079 | ||
Global Equity Fund Class Y | 582,220 | 6,288 | ||
Select International Equity Fund Class Y | 1,217,710 | 11,324 | ||
21,691 | ||||
Total Investments in Affiliated Funds | ||||
(cost $62,329) | 73,164 | |||
Total Investments 100.0% | ||||
(identified cost $62,329) | 73,164 | |||
Other Assets and Liabilities, Net - (0.0%) | (6 | ) | ||
Net Assets - 100.0% | 73,158 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 73,164 | $ | — | $ | — | $ | — | $ | 73,164 | 100.0 | ||||
Total Investments | 73,164 | — | — | — | 73,164 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 | |||||||||||||||
* Less than 0.05% of net assets. |
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
2030 Strategy Fund 123
Russell Investment Company
2030 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | ||
Assets | ||
Investments, at identified cost | $ | 62,329 |
Investments, at fair value(>) | 73,164 | |
Receivables: | ||
Fund shares sold | 46 | |
Total assets | 73,210 | |
Liabilities | ||
Payables: | ||
Investments purchased | 40 | |
Fund shares redeemed | 5 | |
Accrued fees to affiliates | 7 | |
Total liabilities | 52 | |
Net Assets | $ | 73,158 |
Net Assets Consist of: | ||
Accumulated net realized gain (loss) | $ | 407 |
Unrealized appreciation (depreciation) on investments | 10,835 | |
Shares of beneficial interest | 89 | |
Additional paid-in capital | 61,827 | |
Net Assets | $ | 73,158 |
Net Asset Value, offering and redemption price per share: | ||
Net asset value per share: Class A(#) | $ | 8.29 |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 8.80 |
Class A — Net assets | $ | 822,960 |
Class A — Shares outstanding ($.01 par value) | 99,261 | |
Net asset value per share: Class E(#) | $ | 8.19 |
Class E — Net assets | $ | 300,637 |
Class E — Shares outstanding ($.01 par value) | 36,719 | |
Net asset value per share: Class R1(#) | $ | 8.20 |
Class R1 — Net assets | $ | 39,380,417 |
Class R1 — Shares outstanding ($.01 par value) | 4,800,064 | |
Net asset value per share: Class R4(#) | $ | 8.19 |
Class R4 — Net assets | $ | 9,791,281 |
Class R4 — Shares outstanding ($.01 par value) | 1,196,124 | |
Net asset value per share: Class R5(#) | $ | 8.20 |
Class R5 — Net assets | $ | 12,235,660 |
Class R5 — Shares outstanding ($.01 par value) | 1,492,056 | |
Net asset value per share: Class S(#) | $ | 8.20 |
Class S — Net assets | $ | 10,626,643 |
Class S — Shares outstanding ($.01 par value) | 1,296,211 | |
Amounts in thousands | ||
(>) Investments in affiliated funds | $ | 73,164 |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
124 2030 Strategy Fund
Russell Investment Company
2030 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 1,407 |
Expenses | ||
Distribution fees - Class A | 1 | |
Distribution fees - Class R5 | 16 | |
Shareholder servicing fees - Class E | 1 | |
Shareholder servicing fees - Class R4 | 12 | |
Shareholder servicing fees - Class R5 | 16 | |
Total expenses | 46 | |
Net investment income (loss) | 1,361 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 1,158 | |
Capital gain distributions from affiliated funds | 865 | |
Net realized gain (loss) | 2,023 | |
Net change in unrealized appreciation (depreciation) on investments | 1,724 | |
Net realized and unrealized gain (loss) | 3,747 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 5,108 |
See accompanying notes which are an integral part of the financial statements.
2030 Strategy Fund 125
Russell Investment Company
2030 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 1,361 | $ | 1,976 | ||
Net realized gain (loss) | 2,023 | 1,964 | ||||
Net change in unrealized appreciation (depreciation) | 1,724 | (1,423 | ) | |||
Net increase (decrease) in net assets from operations | 5,108 | 2,517 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (16 | ) | (18 | ) | ||
Class E | (5 | ) | (7 | ) | ||
Class R1 | (725 | ) | (1,085 | ) | ||
Class R4 | (188 | ) | (261 | ) | ||
Class R5 | (235 | ) | (385 | ) | ||
Class S | (192 | ) | (230 | ) | ||
From net realized gain | ||||||
Class A | (27 | ) | (49 | ) | ||
Class E | (9 | ) | (20 | ) | ||
Class R1 | (1,151 | ) | (2,744 | ) | ||
Class R4 | (322 | ) | (707 | ) | ||
Class R5 | (433 | ) | (1,206 | ) | ||
Class S | (305 | ) | (562 | ) | ||
Net decrease in net assets from distributions | (3,608 | ) | (7,274 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 1,142 | (11,057 | ) | |||
Total Net Increase (Decrease) in Net Assets | 2,642 | (15,814 | ) | |||
Net Assets | ||||||
Beginning of period | 70,516 | 86,330 | ||||
End of period | $ | 73,158 | $ | 70,516 |
See accompanying notes which are an integral part of the financial statements.
126 2030 Strategy Fund
Russell Investment Company
2030 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | 2 | $ | 13 | 8 | $ | 63 | ||||||
Proceeds from reinvestment of distributions | 5 | 42 | 9 | 68 | ||||||||
Payments for shares redeemed | (8 | ) | (62 | ) | (5 | ) | (38 | ) | ||||
Net increase (decrease) | (1 | ) | (7 | ) | 12 | 93 | ||||||
Class E | ||||||||||||
Proceeds from shares sold | 3 | 23 | 11 | 86 | ||||||||
Proceeds from reinvestment of distributions | 2 | 14 | 3 | 27 | ||||||||
Payments for shares redeemed | (3 | ) | (20 | ) | (11 | ) | (85 | ) | ||||
Net increase (decrease) | 2 | 17 | 3 | 28 | ||||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 513 | 4,125 | 1,083 | 8,582 | ||||||||
Proceeds from reinvestment of distributions | 238 | 1,859 | 493 | 3,800 | ||||||||
Payments for shares redeemed | (381 | ) | (3,079 | ) | (2,470 | ) | (19,697 | ) | ||||
Net increase (decrease) | 370 | 2,905 | (894 | ) | (7,315 | ) | ||||||
Class R4 | ||||||||||||
Proceeds from shares sold | 78 | 623 | 193 | 1,528 | ||||||||
Proceeds from reinvestment of distributions | 66 | 510 | 126 | 968 | ||||||||
Payments for shares redeemed | (250 | ) | (2,003 | ) | (254 | ) | (2,007 | ) | ||||
Net increase (decrease) | (106 | ) | (870 | ) | 65 | 489 | ||||||
Class R5 | ||||||||||||
Proceeds from shares sold | 166 | 1,336 | 330 | 2,585 | ||||||||
Proceeds from reinvestment of distributions | 86 | 668 | 206 | 1,590 | ||||||||
Payments for shares redeemed | (514 | ) | (4,118 | ) | (1,141 | ) | (9,017 | ) | ||||
Net increase (decrease) | (262 | ) | (2,114 | ) | (605 | ) | (4,842 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 132 | 1,060 | 219 | 1,734 | ||||||||
Proceeds from reinvestment of distributions | 64 | 497 | 103 | 792 | ||||||||
Payments for shares redeemed | (43 | ) | (346 | ) | (256 | ) | (2,036 | ) | ||||
Net increase (decrease) | 153 | 1,211 | 66 | 490 | ||||||||
Total increase (decrease) | 156 | $ | 1,142 | (1,353 | ) | $ | (11,057 | ) |
See accompanying notes which are an integral part of the financial statements.
2030 Strategy Fund 127
Russell Investment Company
2030 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class A | ||||||||||||||||
April 30, 2017* | 8.13 | .16 | .42 | .58 | (.16 | ) | (.26 | ) | ||||||||
October 31, 2016 | 8.61 | .19 | .09 | .28 | (.20 | ) | (.56 | ) | ||||||||
October 31, 2015 | 12.55 | .31 | (.28 | ) | .03 | (.24 | ) | (3.73 | ) | |||||||
October 31, 2014 | 12.05 | .26 | .50 | .76 | (.26 | ) | — | |||||||||
October 31, 2013 | 10.55 | .21 | 1.50 | 1.71 | (.21 | ) | — | |||||||||
October 31, 2012 | 9.92 | .17 | .64 | .81 | (.18 | ) | — | |||||||||
Class E | ||||||||||||||||
April 30, 2017* | 8.03 | .15 | .43 | .58 | (.16 | ) | (.26 | ) | ||||||||
October 31, 2016 | 8.52 | .21 | .06 | .27 | (.20 | ) | (.56 | ) | ||||||||
October 31, 2015 | 12.46 | .18 | (.15 | ) | .03 | (.24 | ) | (3.73 | ) | |||||||
October 31, 2014 | 11.96 | .28 | .48 | .76 | (.26 | ) | — | |||||||||
October 31, 2013 | 10.48 | .21 | 1.48 | 1.69 | (.21 | ) | — | |||||||||
October 31, 2012 | 9.84 | .19 | .63 | .82 | (.18 | ) | — | |||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 8.05 | .16 | .42 | .58 | (.17 | ) | (.26 | ) | ||||||||
October 31, 2016 | 8.54 | .22 | .07 | .29 | (.22 | ) | (.56 | ) | ||||||||
October 31, 2015 | 12.48 | .21 | (.16 | ) | .05 | (.26 | ) | (3.73 | ) | |||||||
October 31, 2014 | 11.98 | .33 | .47 | .80 | (.30 | ) | — | |||||||||
October 31, 2013 | 10.49 | .24 | 1.49 | 1.73 | (.24 | ) | — | |||||||||
October 31, 2012 | 9.86 | .20 | .64 | .84 | (.21 | ) | — | |||||||||
Class R4(1) | ||||||||||||||||
April 30, 2017* | 8.03 | .15 | .43 | .58 | (.16 | ) | (.26 | ) | ||||||||
October 31, 2016 | 8.52 | .19 | .08 | .27 | (.20 | ) | (.56 | ) | ||||||||
October 31, 2015 | 12.46 | .20 | (.17 | ) | .03 | (.24 | ) | (3.73 | ) | |||||||
October 31, 2014 | 11.96 | .27 | .49 | .76 | (.26 | ) | — | |||||||||
October 31, 2013 | 10.48 | .21 | 1.48 | 1.69 | (.21 | ) | — | |||||||||
October 31, 2012 | 9.84 | .20 | .61 | .81 | (.17 | ) | — | |||||||||
Class R5(2) | ||||||||||||||||
April 30, 2017* | 8.04 | .15 | .42 | .57 | (.15 | ) | (.26 | ) | ||||||||
October 31, 2016 | 8.53 | .18 | .07 | .25 | (.18 | ) | (.56 | ) | ||||||||
October 31, 2015 | 12.47 | .19 | (.19 | ) | — | (.21 | ) | (3.73 | ) | |||||||
October 31, 2014 | 11.97 | .26 | .47 | .73 | (.23 | ) | — | |||||||||
October 31, 2013 | 10.48 | .19 | 1.48 | 1.67 | (.18 | ) | — | |||||||||
October 31, 2012 | 9.84 | .16 | .63 | .79 | (.15 | ) | — | |||||||||
Class S | ||||||||||||||||
April 30, 2017* | 8.04 | .15 | .44 | .59 | (.17 | ) | (.26 | ) | ||||||||
October 31, 2016 | 8.53 | .21 | .08 | .29 | (.22 | ) | (.56 | ) | ||||||||
October 31, 2015 | 12.47 | .23 | (.18 | ) | .05 | (.26 | ) | (3.73 | ) | |||||||
October 31, 2014 | 11.98 | .33 | .46 | .79 | (.30 | ) | — | |||||||||
October 31, 2013 | 10.49 | .24 | 1.49 | 1.73 | (.24 | ) | — | |||||||||
October 31, 2012 | 9.86 | .20 | .64 | .84 | (.21 | ) | — | |||||||||
See accompanying notes which are an integral part of the financial statements.
128 2030 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.42 | ) | 8.29 | 7.36 | 823 | .25 | .25 | 1.91 | 19 | |||||||||
(.76 | ) | 8.13 | 3.70 | 813 | .25 | .25 | 2.37 | 24 | |||||||||
(3.97 | ) | 8.61 | (.07 | ) | 757 | .25 | .25 | 3.23 | 32 | ||||||||
(.26 | ) | 12.55 | 6.40 | 2,011 | .25 | .25 | 2.14 | 60 | |||||||||
(.21 | ) | 12.05 | 16.42 | 2,321 | .25 | .25 | 1.85 | 16 | |||||||||
(.18 | ) | 10.55 | 8.32 | 2,033 | .25 | .25 | 1.70 | 26 | |||||||||
(.42 | ) | 8.19 | 7.46 | 301 | .25 | .25 | 1.84 | 19 | |||||||||
(.76 | ) | 8.03 | 3.63 | 278 | .25 | .25 | 2.69 | 24 | |||||||||
(3.97 | ) | 8.52 | (.08 | ) | 270 | .25 | .25 | 2.01 | 32 | ||||||||
(.26 | ) | 12.46 | 6.43 | 362 | .25 | .25 | 2.25 | 60 | |||||||||
(.21 | ) | 11.96 | 16.34 | 527 | .25 | .25 | 1.84 | 16 | |||||||||
(.18 | ) | 10.48 | 8.46 | 589 | .25 | .25 | 1.90 | 26 | |||||||||
(.43 | ) | 8.20 | 7.44 | 39,380 | — | — | 1.94 | 19 | |||||||||
(.78 | ) | 8.05 | 3.88 | 35,655 | — | — | 2.75 | 24 | |||||||||
(3.99 | ) | 8.54 | .22 | 45,445 | — | — | 2.29 | 32 | |||||||||
(.30 | ) | 12.48 | 6.72 | 50,599 | — | — | 2.66 | 60 | |||||||||
(.24 | ) | 11.98 | 16.71 | 83,569 | — | — | 2.18 | 16 | |||||||||
(.21 | ) | 10.49 | 8.65 | 87,265 | — | — | 1.99 | 26 | |||||||||
(.42 | ) | 8.19 | 7.46 | 9,791 | .25 | .25 | 1.89 | 19 | |||||||||
(.76 | ) | 8.03 | 3.62 | 10,460 | .25 | .25 | 2.43 | 24 | |||||||||
(3.97 | ) | 8.52 | (.05 | ) | 10,545 | .25 | .25 | 2.22 | 32 | ||||||||
(.26 | ) | 12.46 | 6.45 | 16,830 | .25 | .25 | 2.21 | 60 | |||||||||
(.21 | ) | 11.96 | 16.33 | 20,147 | .25 | .25 | 1.86 | 16 | |||||||||
(.17 | ) | 10.48 | 8.43 | 21,520 | .25 | .25 | 1.96 | 26 | |||||||||
(.41 | ) | 8.20 | 7.30 | 12,236 | .50 | .50 | 1.84 | 19 | |||||||||
(.74 | ) | 8.04 | 3.34 | 14,111 | .50 | .50 | 2.31 | 24 | |||||||||
(3.94 | ) | 8.53 | (.35 | ) | 20,120 | .50 | .50 | 2.02 | 32 | ||||||||
(.23 | ) | 12.47 | 6.17 | 39,472 | .50 | .50 | 2.12 | 60 | |||||||||
(.18 | ) | 11.97 | 16.13 | 51,507 | .50 | .50 | 1.66 | 16 | |||||||||
(.15 | ) | 10.48 | 8.15 | 50,961 | .50 | .50 | 1.64 | 26 | |||||||||
(.43 | ) | 8.20 | 7.58 | 10,627 | — | — | 1.93 | 19 | |||||||||
(.78 | ) | 8.04 | 3.87 | 9,199 | — | — | 2.64 | 24 | |||||||||
(3.99 | ) | 8.53 | .22 | 9,193 | — | — | 2.46 | 32 | |||||||||
(.30 | ) | 12.47 | 6.63 | 14,168 | — | — | 2.68 | 60 | |||||||||
(.24 | ) | 11.98 | 16.71 | 20,905 | — | — | 2.15 | 16 | |||||||||
(.21 | ) | 10.49 | 8.65 | 24,300 | — | — | 1.98 | 26 |
See accompanying notes which are an integral part of the financial statements.
2030 Strategy Fund 129
Russell Investment Company
2030 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 2,666 |
Shareholder servicing fees | 4,546 | |
$ | 7,212 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 1,867 | $ | 323 | $ | 290 | $ | (33 | ) $ | 19 | $ | 1,886 | $ | — | $ | — | ||||
Global Infrastructure Fund | 1,539 | 552 | 253 | (20 | ) | 112 | 1,930 | 27 | 44 | |||||||||||
Global Real Estate Securities Fund | 1,188 | 614 | 194 | (7 | ) | (51 | ) | 1,550 | 43 | 66 | ||||||||||
Select U.S. Equity Fund | 13,105 | 499 | 3,642 | 485 | 1,053 | 11,500 | 100 | — | ||||||||||||
U.S. Defensive Equity Fund | 1,983 | 215 | 237 | 39 | 27 | 2,027 | 11 | 135 | ||||||||||||
U.S. Dynamic Equity Fund | 2,205 | 140 | 1,977 | 196 | (15 | ) | 549 | 14 | 85 | |||||||||||
U.S. Small Cap Equity Fund | 3,797 | 379 | 1,087 | 399 | 203 | 3,691 | 25 | 8 | ||||||||||||
Global Opportunistic Credit Fund | 1,855 | 211 | 1,071 | (18 | ) | 12 | 989 | 43 | — | |||||||||||
Investment Grade Bond Fund | 5,292 | 1,881 | 365 | (18 | ) | (230 | ) | 6,560 | 201 | 16 | ||||||||||
Strategic Bond Fund | 17,636 | 4,999 | 1,134 | (24 | ) | (686 | ) | 20,791 | 559 | 103 | ||||||||||
Emerging Markets Fund | 3,316 | 1,298 | 884 | 158 | 191 | 4,079 | 41 | — | ||||||||||||
Global Equity Fund | 6,441 | 764 | 1,147 | 111 | 119 | 6,288 | 103 | 408 | ||||||||||||
Select International Equity Fund | 10,300 | 1,819 | 1,655 | (110 | ) | 970 | 11,324 | 240 | — | |||||||||||
$ | 70,524 | $ | 13,694 | $ | 13,936 | $ | 1,158 | $ | 1,724 | $ | 73,164 | $ | 1,407 | $ | 865 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 63,993,744 | ||
Unrealized Appreciation | $ | 9,995,857 | ||
Unrealized Depreciation | (825,462 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 9,170,395 |
See accompanying notes which are an integral part of the financial statements.
130 2030 Strategy Fund
Russell Investment Company
2035 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur ongoing costs, including | addition, if these transactional costs were included, your costs | |||||
distribution (12b-1) and/or service fees and other Fund expenses. | would have been higher. | |||||
The Example is intended to help you understand your ongoing | Hypothetical | |||||
costs (in dollars) of investing in the Fund and to compare these | Performance (5% | |||||
costs with the ongoing costs of investing in other mutual funds. | Actual | return before | ||||
The Example is based on an investment of $1,000 invested at the | Class R1 | Performance | expenses) | |||
Beginning Account Value | ||||||
beginning of the period and held for the entire period indicated, | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
which for this Fund is from November 1, 2016 to April 30, 2017. | Ending Account Value | |||||
April 30, 2017 | $ | 1,094.90 | $ | 1,024.79 | ||
Actual Expenses | Expenses Paid During Period* | $ | — | $ | — | |
The information in the table under the heading “Actual | ||||||
Performance” provides information about actual account values | * There were no expenses charged to the Class. | |||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
Class R4 | Performance | expenses) | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,093.60 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.30 | $ | 1.25 | ||
Hypothetical Example for Comparison Purposes | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | ||||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). | |||||
based on the Fund’s actual expense ratio and an assumed rate of | ||||||
Hypothetical | ||||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
actual return. The hypothetical account values and expenses | Actual | return before | ||||
may not be used to estimate the actual ending account balance or | Class R5 | Performance | expenses) | |||
expenses you paid for the period. You may use this information | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
funds. To do so, compare this 5% hypothetical example with the | April 30, 2017 | $ | 1,091.10 | $ | 1,022.32 | |
5% hypothetical examples that appear in the shareholder reports | Expenses Paid During Period* | $ | 2.59 | $ | 2.51 | |
of other funds. | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
2035 Strategy Fund 131
Russell Investment Company
2035 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 8.0% | ||||
Commodity Strategies Fund Class Y | 106,018 | 579 | ||
Global Infrastructure Fund Class Y | 49,249 | 586 | ||
Global Real Estate Securities Fund Class Y | 12,818 | 432 | ||
1,597 | ||||
Domestic Equities - 29.7% | ||||
Select U.S. Equity Fund Class Y | 303,170 | 3,741 | ||
U.S. Defensive Equity Fund Class Y | 11,616 | 590 | ||
U.S. Dynamic Equity Fund Class Y | 20,185 | 221 | ||
U.S. Small Cap Equity Fund Class Y | 41,718 | 1,343 | ||
5,895 | ||||
Fixed Income - 25.4% | ||||
Global Opportunistic Credit Fund Class Y | 22,185 | 218 | ||
Investment Grade Bond Fund Class Y | 11,161 | 237 | ||
Strategic Bond Fund Class Y | 434,748 | 4,599 | ||
5,054 | ||||
International Equities - 36.9% | ||||
Emerging Markets Fund Class Y | 81,147 | 1,482 | ||
Global Equity Fund Class Y | 194,416 | 2,100 | ||
Select International Equity Fund Class Y | 402,932 | 3,746 | ||
7,328 | ||||
Total Investments in Affiliated Funds | ||||
(cost $16,913) | 19,874 | |||
Total Investments 100.0% | ||||
(identified cost $16,913) | 19,874 | |||
Other Assets and Liabilities, Net - (0.0%) | (2 | ) | ||
Net Assets - 100.0% | 19,872 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 19,874 | $ | — | $ | — | $ | — | $ | 19,874 | 100.0 | ||||
Total Investments | 19,874 | — | — | — | 19,874 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 | |||||||||||||||
* Less than .05% of net assets. |
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
132 2035 Strategy Fund
Russell Investment Company
2035 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 16,913 | |
Investments, at fair value(>) | 19,874 | ||
Receivables: | |||
Fund shares sold | 31 | ||
Total assets | 19,905 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 30 | ||
Accrued fees to affiliates | 3 | ||
Total liabilities | 33 | ||
Net Assets | $ | 19,872 | |
Net Assets Consist of: | |||
Accumulated net realized gain (loss) | $ | (40 | ) |
Unrealized appreciation (depreciation) on investments | 2,961 | ||
Shares of beneficial interest | 22 | ||
Additional paid-in capital | 16,929 | ||
Net Assets | $ | 19,872 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R1(#) | $ | 8.91 | |
Class R1 — Net assets | $ | 9,070,436 | |
Class R1 — Shares outstanding ($.01 par value) | 1,017,713 | ||
Net asset value per share: Class R4(#) | $ | 8.90 | |
Class R4 — Net assets | $ | 6,907,414 | |
Class R4 — Shares outstanding ($.01 par value) | 775,939 | ||
Net asset value per share: Class R5(#) | $ | 8.90 | |
Class R5 — Net assets | $ | 3,894,008 | |
Class R5 — Shares outstanding ($.01 par value) | 437,404 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 19,874 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
2035 Strategy Fund 133
Russell Investment Company
2035 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 334 |
Expenses | ||
Distribution fees - Class R5 | 5 | |
Shareholder servicing fees - Class R4 | 9 | |
Shareholder servicing fees - Class R5 | 5 | |
Total expenses | 19 | |
Net investment income (loss) | 315 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 417 | |
Capital gain distributions from affiliated funds | 268 | |
Net realized gain (loss) | 685 | |
Net change in unrealized appreciation (depreciation) on investments | 756 | |
Net realized and unrealized gain (loss) | 1,441 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 1,756 |
See accompanying notes which are an integral part of the financial statements.
134 2035 Strategy Fund
Russell Investment Company
2035 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 315 | $ | 466 | ||
Net realized gain (loss) | 685 | 316 | ||||
Net change in unrealized appreciation (depreciation) | 756 | (195 | ) | |||
Net increase (decrease) in net assets from operations | 1,756 | 587 | ||||
Distributions | ||||||
From net investment income | ||||||
Class R1 | (141 | ) | (197 | ) | ||
Class R4 | (100 | ) | (162 | ) | ||
Class R5 | (74 | ) | (108 | ) | ||
From net realized gain | ||||||
Class R1 | (225 | ) | (269 | ) | ||
Class R4 | (173 | ) | (248 | ) | ||
Class R5 | (138 | ) | (192 | ) | ||
Net decrease in net assets from distributions | (851 | ) | (1,176 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (1,203 | ) | (4,271 | ) | ||
Total Net Increase (Decrease) in Net Assets | (298 | ) | (4,860 | ) | ||
Net Assets | ||||||
Beginning of period | 20,170 | 25,030 | ||||
End of period | $ | 19,872 | $ | 20,170 |
See accompanying notes which are an integral part of the financial statements.
2035 Strategy Fund 135
Russell Investment Company
2035 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 105 | $ | 908 | 265 | $ | 2,146 | ||||||
Proceeds from reinvestment of distributions | 42 | 353 | 55 | 450 | ||||||||
Payments for shares redeemed | (79 | ) | (682 | ) | (613 | ) | (5,147 | ) | ||||
Net increase (decrease) | 68 | 579 | (293 | ) | (2,551 | ) | ||||||
Class R4 | ||||||||||||
Proceeds from shares sold | 44 | 383 | 132 | 1,090 | ||||||||
Proceeds from reinvestment of distributions | 32 | 274 | 50 | 410 | ||||||||
Payments for shares redeemed | (150 | ) | (1,301 | ) | (207 | ) | (1,745 | ) | ||||
Net increase (decrease) | (74 | ) | (644 | ) | (25 | ) | (245 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 68 | 588 | 176 | 1,449 | ||||||||
Proceeds from reinvestment of distributions | 25 | 212 | 37 | 301 | ||||||||
Payments for shares redeemed | (227 | ) | (1,938 | ) | (390 | ) | (3,225 | ) | ||||
Net increase (decrease) | (134 | ) | (1,138 | ) | (177 | ) | (1,475 | ) | ||||
Total increase (decrease) | (140 | ) | $ | (1,203 | ) | (495 | ) | $ | (4,271 | ) |
See accompanying notes which are an integral part of the financial statements.
136 2035 Strategy Fund
(This page intentionally left blank)
Russell Investment Company
2035 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 8.51 | .14 | .65 | .79 | (.15 | ) | (.24 | ) | ||||||||
October 31, 2016 | 8.74 | .20 | .07 | .27 | (.21 | ) | (.29 | ) | ||||||||
October 31, 2015 | 11.39 | .18 | (.18 | ) | — | (.23 | ) | (2.42 | ) | |||||||
October 31, 2014 | 11.16 | .33 | .45 | .78 | (.30 | ) | (.25 | ) | ||||||||
October 31, 2013 | 9.68 | .17 | 1.75 | 1.92 | (.18 | ) | (.26 | ) | ||||||||
October 31, 2012 | 9.10 | .17 | .63 | .80 | (.17 | ) | (.05 | ) | ||||||||
Class R4(1) | ||||||||||||||||
April 30, 2017* | 8.50 | .13 | .64 | .77 | (.13 | ) | (.24 | ) | ||||||||
October 31, 2016 | 8.73 | .18 | .07 | .25 | (.19 | ) | (.29 | ) | ||||||||
October 31, 2015 | 11.38 | .18 | (.21 | ) | (.03 | ) | (.20 | ) | (2.42 | ) | ||||||
October 31, 2014 | 11.15 | .24 | .51 | .75 | (.27 | ) | (.25 | ) | ||||||||
October 31, 2013 | 9.67 | .16 | 1.74 | 1.90 | (.16 | ) | (.26 | ) | ||||||||
October 31, 2012 | 9.09 | .14 | .63 | .77 | (.14 | ) | (.05 | ) | ||||||||
Class R5(2) | ||||||||||||||||
April 30, 2017* | 8.51 | .15 | .60 | .75 | (.12 | ) | (.24 | ) | ||||||||
October 31, 2016 | 8.73 | .17 | .07 | .24 | (.17 | ) | (.29 | ) | ||||||||
October 31, 2015 | 11.38 | .17 | (.22 | ) | (.05 | ) | (.18 | ) | (2.42 | ) | ||||||
October 31, 2014 | 11.15 | .24 | .48 | .72 | (.24 | ) | (.25 | ) | ||||||||
October 31, 2013 | 9.67 | .12 | 1.75 | 1.87 | (.13 | ) | (.26 | ) | ||||||||
October 31, 2012 | 9.08 | .13 | .62 | .75 | (.11 | ) | (.05 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
138 2035 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.39 | ) | 8.91 | 9.49 | 9,071 | — | — | 1.65 | 20 | |||||||||
(.50 | ) | 8.51 | 3.41 | 8,087 | — | — | 2.35 | 29 | |||||||||
(2.65 | ) | 8.74 | (.34 | ) | 10,865 | — | — | 1.94 | 46 | ||||||||
(.55 | ) | 11.39 | 7.12 | 7,843 | — | — | 2.91 | 80 | |||||||||
(.44 | ) | 11.16 | 20.63 | 11,299 | — | — | 1.68 | 44 | |||||||||
(.22 | ) | 9.68 | 8.99 | 11,495 | — | — | 1.78 | 47 | |||||||||
(.37 | ) | 8.90 | 9.36 | 6,907 | .25 | .25 | 1.50 | 20 | |||||||||
(.48 | ) | 8.50 | 3.15 | 7,224 | .25 | .25 | 2.20 | 29 | |||||||||
(2.62 | ) | 8.73 | (.59 | ) | 7,634 | .25 | .25 | 1.90 | 46 | ||||||||
(.52 | ) | 11.38 | 6.86 | 7,695 | .25 | .25 | 2.14 | 80 | |||||||||
(.42 | ) | 11.15 | 20.36 | 6,258 | .25 | .25 | 1.52 | 44 | |||||||||
(.19 | ) | 9.67 | 8.72 | 5,457 | .25 | .25 | 1.49 | 47 | |||||||||
(.36 | ) | 8.90 | 9.11 | 3,894 | .50 | .50 | 1.75 | 20 | |||||||||
(.46 | ) | 8.51 | 2.99 | 4,859 | .50 | .50 | 2.02 | 29 | |||||||||
(2.60 | ) | 8.73 | (.89 | ) | 6,531 | .50 | .50 | 1.84 | 46 | ||||||||
(.49 | ) | 11.38 | 6.60 | 11,312 | .50 | .50 | 2.18 | 80 | |||||||||
(.39 | ) | 11.15 | 20.06 | 12,381 | .50 | .50 | 1.21 | 44 | |||||||||
(.16 | ) | 9.67 | 8.50 | 9,014 | .50 | .50 | 1.36 | 47 |
See accompanying notes which are an integral part of the financial statements.
2035 Strategy Fund 139
Russell Investment Company
2035 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 791 |
Shareholder servicing fees | 2,184 | |
$ | 2,975 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 609 | $ | 111 | $ | 139 | $ | (22 | ) $ | 20 | $ | 579 | $ | — | $ | — | ||||
Global Infrastructure Fund | 513 | 149 | 102 | (9 | ) | 35 | 586 | 9 | 14 | |||||||||||
Global Real Estate Securities Fund | 313 | 205 | 71 | 4 | (19 | ) | 432 | 11 | 17 | |||||||||||
Select U.S. Equity Fund | 4,574 | 190 | 1,543 | 207 | 313 | 3,741 | 34 | — | ||||||||||||
U.S. Defensive Equity Fund | 605 | 63 | 97 | 24 | (5 | ) | 590 | 3 | 40 | |||||||||||
U.S. Dynamic Equity Fund | 822 | 57 | 725 | 71 | (4 | ) | 221 | 5 | 31 | |||||||||||
U.S. Small Cap Equity Fund | 1,433 | 140 | 456 | 142 | 84 | 1,343 | 9 | 3 | ||||||||||||
Global Opportunistic Credit Fund | 373 | 75 | 230 | 3 | (3 | ) | 218 | 9 | — | |||||||||||
Investment Grade Bond Fund | — | 258 | 25 | — | 4 | 237 | — | — | ||||||||||||
Strategic Bond Fund | 3,836 | 1,451 | 537 | (16 | ) | (135 | ) | 4,599 | 121 | 22 | ||||||||||
Emerging Markets Fund | 1,279 | 395 | 314 | (6 | ) | 128 | 1,482 | 16 | — | |||||||||||
Global Equity Fund | 2,248 | 277 | 500 | 63 | 12 | 2,100 | 35 | 141 | ||||||||||||
Select International Equity Fund | 3,567 | 645 | 748 | (44 | ) | 326 | 3,746 | 82 | — | |||||||||||
$ | 20,172 | $ | 4,016 | $ | 5,487 | $ | 417 | $ | 756 | $ | 19,874 | $ | 334 | $ | 268 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 17,684,139 | ||
Unrealized Appreciation | $ | 2,282,332 | ||
Unrealized Depreciation | (92,304 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 2,190,028 |
See accompanying notes which are an integral part of the financial statements.
140 2035 Strategy Fund
Russell Investment Company
2040 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including distribution (12b-1) and/or service fees and other | Performance (5% | |||||
Fund expenses. The Example is intended to help you understand | Actual | return before | ||||
your ongoing costs (in dollars) of investing in the Fund and to | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
compare these costs with the ongoing costs of investing in other | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
mutual funds. The Example is based on an investment of $1,000 | Ending Account Value | |||||
invested at the beginning of the period and held for the entire | April 30, 2017 | $ | 1,113.80 | $ | 1,023.55 | |
period indicated, which for this Fund is from November 1, 2016 | Expenses Paid During Period* | $ | 1.31 | $ | 1.25 | |
to November 1, 2016. | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class E | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,112.40 | $ | 1,023.55 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | 1.31 | $ | 1.25 | |
Hypothetical Example for Comparison Purposes | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
Performance (5% return before expenses)” provides information | year period). | |||||
about hypothetical account values and hypothetical expenses | ||||||
based on the Fund’s actual expense ratio and an assumed rate of | Hypothetical | |||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
Actual | return before | |||||
actual return. The hypothetical account values and expenses | Class R1 | Performance | expenses) | |||
may not be used to estimate the actual ending account balance or | Beginning Account Value | |||||
expenses you paid for the period. You may use this information | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
April 30, 2017 | $ | 1,113.80 | $ | 1,024.79 | ||
funds. To do so, compare this 5% hypothetical example with the | Expenses Paid During Period* | $ | — | $ | — | |
5% hypothetical examples that appear in the shareholder reports | ||||||
of other funds. | * There were no expenses charged to the Class. |
2040 Strategy Fund 141
Russell Investment Company
2040 Strategy Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R4 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,113.70 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.31 | $ | 1.25 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). | |||||
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R5 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,111.30 | $ | 1,022.32 | |
Expenses Paid During Period* | $ | 2.62 | $ | 2.51 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). | |||||
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class S | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,115.10 | $ | 1,024.79 | |
Expenses Paid During Period* | $ | — | $ | — | |
* There were no expenses charged to the Class. |
142 2040 Strategy Fund
Russell Investment Company
2040 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 9.6% | ||||
Commodity Strategies Fund Class Y | 258,869 | 1,413 | ||
Global Infrastructure Fund Class Y | 121,133 | 1,441 | ||
Global Real Estate Securities Fund Class Y | 33,001 | 1,113 | ||
3,967 | ||||
Domestic Equities - 37.3% | ||||
Select U.S. Equity Fund Class Y | 784,739 | 9,683 | ||
U.S. Defensive Equity Fund Class Y | 24,298 | 1,234 | ||
U.S. Dynamic Equity Fund Class Y | 84,713 | 927 | ||
U.S. Small Cap Equity Fund Class Y | 108,794 | 3,502 | ||
15,346 | ||||
Fixed Income - 8.4% | ||||
Strategic Bond Fund Class Y | 327,425 | 3,464 | ||
International Equities - 44.7% | ||||
Emerging Markets Fund Class Y | 214,765 | 3,922 | ||
Global Equity Fund Class Y | 489,216 | 5,284 | ||
Select International Equity Fund Class Y | 990,778 | 9,213 | ||
18,419 | ||||
Total Investments in Affiliated Funds | ||||
(cost $32,009) | 41,196 | |||
Total Investments 100.0% | ||||
(identified cost $32,009) | 41,196 | |||
Other Assets and Liabilities, Net - (0.0%) | (4 | ) | ||
Net Assets - 100.0% | 41,192 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 41,196 | $ | — | $ | — | $ | — | $ | 41,196 | 100.0 | ||||
Total Investments | 41,196 | — | — | — | 41,196 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 | |||||||||||||||
* Less than 0.05% of net assets. |
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
2040 Strategy Fund 143
Russell Investment Company
2040 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 32,009 | |
Investments, at fair value(>) | 41,196 | ||
Receivables: | |||
Fund shares sold | 37 | ||
Total assets | 41,233 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 37 | ||
Accrued fees to affiliates | 4 | ||
Total liabilities | 41 | ||
Net Assets | $ | 41,192 | |
Net Assets Consist of: | |||
Undistributed (overdistributed) net investment income | $ | 1 | |
Accumulated net realized gain (loss) | (332 | ) | |
Unrealized appreciation (depreciation) on investments | 9,187 | ||
Shares of beneficial interest | 52 | ||
Additional paid-in capital | 32,284 | ||
Net Assets | $ | 41,192 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 7.85 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 8.33 | |
Class A — Net assets | $ | 537,136 | |
Class A — Shares outstanding ($.01 par value) | 68,449 | ||
Net asset value per share: Class E(#) | $ | 7.84 | |
Class E — Net assets | $ | 102,149 | |
Class E — Shares outstanding ($.01 par value) | 13,021 | ||
Net asset value per share: Class R1(#) | $ | 7.85 | |
Class R1 — Net assets | $ | 22,344,410 | |
Class R1 — Shares outstanding ($.01 par value) | 2,845,176 | ||
Net asset value per share: Class R4(#) | $ | 7.86 | |
Class R4 — Net assets | $ | 6,590,930 | |
Class R4 — Shares outstanding ($.01 par value) | 838,836 | ||
Net asset value per share: Class R5(#) | $ | 7.83 | |
Class R5 — Net assets | $ | 6,656,109 | |
Class R5 — Shares outstanding ($.01 par value) | 850,278 | ||
Net asset value per share: Class S(#) | $ | 7.86 | |
Class S — Net assets | $ | 4,961,371 | |
Class S — Shares outstanding ($.01 par value) | 631,528 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 41,196 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
144 2040 Strategy Fund
Russell Investment Company
2040 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 584 |
Expenses | ||
Distribution fees - Class A | 1 | |
Distribution fees - Class R5 | 9 | |
Shareholder servicing fees - Class E | —** | |
Shareholder servicing fees - Class R4 | 7 | |
Shareholder servicing fees - Class R5 | 9 | |
Total expenses | 26 | |
Net investment income (loss) | 558 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 743 | |
Capital gain distributions from affiliated funds | 602 | |
Net realized gain (loss) | 1,345 | |
Net change in unrealized appreciation (depreciation) on investments | 2,459 | |
Net realized and unrealized gain (loss) | 3,804 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 4,362 |
** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
2040 Strategy Fund 145
Russell Investment Company
2040 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 558 | $ | 1,207 | ||
Net realized gain (loss) | 1,345 | 2,255 | ||||
Net change in unrealized appreciation (depreciation) | 2,459 | (2,827 | ) | |||
Net increase (decrease) in net assets from operations | 4,362 | 635 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (7 | ) | (15 | ) | ||
Class E | (1 | ) | (2 | ) | ||
Class R1 | (303 | ) | (749 | ) | ||
Class R4 | (79 | ) | (133 | ) | ||
Class R5 | (100 | ) | (215 | ) | ||
Class S | (67 | ) | (105 | ) | ||
From net realized gain | ||||||
Class A | (36 | ) | (67 | ) | ||
Class E | (5 | ) | (10 | ) | ||
Class R1 | (1,329 | ) | (3,237 | ) | ||
Class R4 | (382 | ) | (588 | ) | ||
Class R5 | (533 | ) | (1,118 | ) | ||
Class S | (295 | ) | (421 | ) | ||
Net decrease in net assets from distributions | (3,137 | ) | (6,660 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | 214 | (18,921 | ) | |||
Total Net Increase (Decrease) in Net Assets | 1,439 | (24,946 | ) | |||
Net Assets | ||||||
Beginning of period | 39,753 | 64,699 | ||||
End of period | $ | 41,192 | $ | 39,753 | ||
Undistributed (overdistributed) net investment income included in net assets | $ | 1 | $ | — |
See accompanying notes which are an integral part of the financial statements.
146 2040 Strategy Fund
Russell Investment Company
2040 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | —** | $ | —*** | 3 | $ | 18 | ||||||
Proceeds from reinvestment of distributions | 6 | 43 | 11 | 82 | ||||||||
Payments for shares redeemed | (14 | ) | (105 | ) | (25 | ) | (184 | ) | ||||
Net increase (decrease) | (8 | ) | (62 | ) | (11 | ) | (84 | ) | ||||
Class E | ||||||||||||
Proceeds from shares sold | 2 | 18 | 6 | 48 | ||||||||
Proceeds from reinvestment of distributions | 1 | 6 | 2 | 12 | ||||||||
Payments for shares redeemed | (1 | ) | (10 | ) | (11 | ) | (83 | ) | ||||
Net increase (decrease) | 2 | 14 | (3 | ) | (23 | ) | ||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 246 | 1,878 | 1,598 | 11,876 | ||||||||
Proceeds from reinvestment of distributions | 217 | 1,601 | 536 | 3,932 | ||||||||
Payments for shares redeemed | (257 | ) | (1,988 | ) | (4,107 | ) | (30,592 | ) | ||||
Net increase (decrease) | 206 | 1,491 | (1,973 | ) | (14,784 | ) | ||||||
Class R4 | ||||||||||||
Proceeds from shares sold | 65 | 495 | 187 | 1,415 | ||||||||
Proceeds from reinvestment of distributions | 62 | 461 | 98 | 720 | ||||||||
Payments for shares redeemed | (120 | ) | (932 | ) | (245 | ) | (1,910 | ) | ||||
Net increase (decrease) | 7 | 24 | 40 | 225 | ||||||||
Class R5 | ||||||||||||
Proceeds from shares sold | 106 | 813 | 349 | 2,568 | ||||||||
Proceeds from reinvestment of distributions | 86 | 633 | 183 | 1,333 | ||||||||
Payments for shares redeemed | (402 | ) | (3,010 | ) | (955 | ) | (7,088 | ) | ||||
Net increase (decrease) | (210 | ) | (1,564 | ) | (423 | ) | (3,187 | ) | ||||
Class S | ||||||||||||
Proceeds from shares sold | 108 | 825 | 422 | 3,123 | ||||||||
Proceeds from reinvestment of distributions | 49 | 361 | 71 | 525 | ||||||||
Payments for shares redeemed | (114 | ) | (875 | ) | (630 | ) | (4,716 | ) | ||||
Net increase (decrease) | 43 | 311 | (137 | ) | (1,068 | ) | ||||||
Total increase (decrease) | 40 | $ | 214 | (2,507 | ) | $ | (18,921 | ) | ||||
** Less than 500 shares. | ||||||||||||
*** Less than $500. |
See accompanying notes which are an integral part of the financial statements.
2040 Strategy Fund 147
Russell Investment Company
2040 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | |||||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||||
Class A | |||||||||||||||||
April 30, 2017* | 7.63 | .10 | .73 | .83 | (.11 | ) | (.50 | ) | |||||||||
October 31, 2016 | 8.38 | .17 | .02 | .19 | (.17 | ) | (.77 | ) | |||||||||
October 31, 2015 | 13.08 | .17 | (.20 | ) | (.03 | ) | (.22 | ) | (4.45 | ) | |||||||
October 31, 2014 | 12.53 | .30 | .55 | .85 | (.30 | ) | — | ||||||||||
October 31, 2013 | 10.58 | .17 | 1.95 | 2.12 | (.17 | ) | — | ||||||||||
October 31, 2012 | 9.89 | .17 | .67 | .84 | (.15 | ) | — | ||||||||||
Class E | |||||||||||||||||
April 30, 2017* | 7.63 | .09 | .73 | .82 | (.11 | ) | (.50 | ) | |||||||||
October 31, 2016 | 8.38 | .15 | .04 | .19 | (.17 | ) | (.77 | ) | |||||||||
October 31, 2015 | 13.08 | .23 | (.27 | ) | (.04 | ) | (.21 | ) | (4.45 | ) | |||||||
October 31, 2014 | 12.53 | .32 | .52 | .84 | (.29 | ) | — | ||||||||||
October 31, 2013 | 10.57 | .17 | 1.96 | 2.13 | (.17 | ) | — | ||||||||||
October 31, 2012 | 9.89 | .16 | .68 | .84 | (.16 | ) | — | ||||||||||
Class R1 | |||||||||||||||||
April 30, 2017* | 7.64 | .11 | .72 | .83 | (.12 | ) | (.50 | ) | |||||||||
October 31, 2016 | 8.39 | .19 | .02 | .21 | (.19 | ) | (.77 | ) | |||||||||
October 31, 2015 | 13.09 | .18 | (.18 | ) | — | (.25 | ) | (4.45 | ) | ||||||||
October 31, 2014 | 12.54 | .36 | .52 | .88 | (.33 | ) | — | ||||||||||
October 31, 2013 | 10.59 | .21 | 1.94 | 2.15 | (.20 | ) | — | ||||||||||
October 31, 2012 | 9.90 | .18 | .69 | .87 | (.18 | ) | — | ||||||||||
Class R4(1) | |||||||||||||||||
April 30, 2017* | 7.64 | .10 | .73 | .83 | (.11 | ) | (.50 | ) | |||||||||
October 31, 2016 | 8.39 | .15 | .04 | .19 | (.17 | ) | (.77 | ) | |||||||||
October 31, 2015 | 13.09 | .18 | (.21 | ) | (.03 | ) | (.22 | ) | (4.45 | ) | |||||||
October 31, 2014 | 12.54 | .31 | .54 | .85 | (.30 | ) | — | ||||||||||
October 31, 2013 | 10.58 | .18 | 1.95 | 2.13 | (.17 | ) | — | ||||||||||
October 31, 2012 | 9.89 | .18 | .66 | .84 | (.15 | ) | — | ||||||||||
Class R5(2) | |||||||||||||||||
April 30, 2017* | 7.62 | .11 | .70 | .81 | (.10 | ) | (.50 | ) | |||||||||
October 31, 2016 | 8.37 | .15 | .02 | .17 | (.15 | ) | (.77 | ) | |||||||||
October 31, 2015 | 13.06 | .17 | (.22 | ) | (.05 | ) | (.19 | ) | (4.45 | ) | |||||||
October 31, 2014 | 12.52 | .32 | .49 | .81 | (.27 | ) | — | ||||||||||
October 31, 2013 | 10.56 | .15 | 1.95 | 2.10 | (.14 | ) | — | ||||||||||
October 31, 2012 | 9.87 | .14 | .67 | .81 | (.12 | ) | — | ||||||||||
Class S | |||||||||||||||||
April 30, 2017* | 7.64 | .11 | .73 | .84 | (.12 | ) | (.50 | ) | |||||||||
October 31, 2016 | 8.39 | .17 | .04 | .21 | (.19 | ) | (.77 | ) | |||||||||
October 31, 2015 | 13.09 | .24 | (.24 | ) | — | (.25 | ) | (4.45 | ) | ||||||||
October 31, 2014 | 12.54 | .36 | .52 | .88 | (.33 | ) | — | ||||||||||
October 31, 2013 | 10.59 | .21 | 1.94 | 2.15 | (.20 | ) | — | ||||||||||
October 31, 2012 | 9.90 | .18 | .69 | .87 | (.18 | ) | — | ||||||||||
See accompanying notes which are an integral part of the financial statements.
148 2040 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.61 | ) | 7.85 | 11.38 | 537 | .25 | .25 | 1.33 | 14 | |||||||||
(.94 | ) | 7.63 | 2.82 | 582 | .25 | .25 | 2.29 | 31 | |||||||||
(4.67 | ) | 8.38 | (.92 | ) | 736 | .25 | .25 | 1.89 | 25 | ||||||||
(.30 | ) | 13.08 | 6.85 | 1,114 | .25 | .25 | 2.29 | 64 | |||||||||
(.17 | ) | 12.53 | 20.33 | 1,048 | .25 | .25 | 1.52 | 14 | |||||||||
(.15 | ) | 10.58 | 8.69 | 902 | .25 | .25 | 1.71 | 26 | |||||||||
(.61 | ) | 7.84 | 11.24 | 102 | .25 | .25 | 1.19 | 14 | |||||||||
(.94 | ) | 7.63 | 2.80 | 84 | .25 | .25 | 2.01 | 31 | |||||||||
(4.66 | ) | 8.38 | (.97 | ) | 116 | .25 | .25 | 2.43 | 25 | ||||||||
(.29 | ) | 13.08 | 6.80 | 605 | .25 | .25 | 2.49 | 64 | |||||||||
(.17 | ) | 12.53 | 20.45 | 1,100 | .25 | .25 | 1.49 | 14 | |||||||||
(.16 | ) | 10.57 | 8.59 | 979 | .25 | .25 | 1.55 | 26 | |||||||||
(.62 | ) | 7.85 | 11.38 | 22,345 | — | — | 1.41 | 14 | |||||||||
(.96 | ) | 7.64 | 3.08 | 20,163 | — | — | 2.57 | 31 | |||||||||
(4.70 | ) | 8.39 | (.61 | ) | 38,704 | — | — | 2.01 | 25 | ||||||||
(.33 | ) | 13.09 | 7.11 | 46,351 | — | — | 2.83 | 64 | |||||||||
(.20 | ) | 12.54 | 20.61 | 66,546 | — | — | 1.79 | 14 | |||||||||
(.18 | ) | 10.59 | 8.99 | 59,225 | — | — | 1.76 | 26 | |||||||||
(.61 | ) | 7.86 | 11.37 | 6,591 | .25 | .25 | 1.26 | 14 | |||||||||
(.94 | ) | 7.64 | 2.81 | 6,354 | .25 | .25 | 2.04 | 31 | |||||||||
(4.67 | ) | 8.39 | (.91 | ) | 6,640 | .25 | .25 | 1.92 | 25 | ||||||||
(.30 | ) | 13.09 | 6.84 | 11,027 | .25 | .25 | 2.39 | 64 | |||||||||
(.17 | ) | 12.54 | 20.41 | 12,257 | .25 | .25 | 1.58 | 14 | |||||||||
(.15 | ) | 10.58 | 8.64 | 13,393 | .25 | .25 | 1.81 | 26 | |||||||||
(.60 | ) | 7.83 | 11.13 | 6,656 | .50 | .50 | 1.40 | 14 | |||||||||
(.92 | ) | 7.62 | 2.56 | 8,072 | .50 | .50 | 1.99 | 31 | |||||||||
(4.64 | ) | 8.37 | (1.07 | ) | 12,410 | .50 | .50 | 1.83 | 25 | ||||||||
(.27 | ) | 13.06 | 6.51 | 25,262 | .50 | .50 | 2.47 | 64 | |||||||||
(.14 | ) | 12.52 | 20.14 | 36,644 | .50 | .50 | 1.34 | 14 | |||||||||
(.12 | ) | 10.56 | 8.39 | 38,165 | .50 | .50 | 1.38 | 26 | |||||||||
(.62 | ) | 7.86 | 11.51 | 4,961 | — | — | 1.41 | 14 | |||||||||
(.96 | ) | 7.64 | 3.08 | 4,498 | — | — | 2.25 | 31 | |||||||||
(4.70 | ) | 8.39 | (.65 | ) | 6,093 | — | — | 2.49 | 25 | ||||||||
(.33 | ) | 13.09 | 7.11 | 17,707 | — | — | 2.79 | 64 | |||||||||
(.20 | ) | 12.54 | 20.61 | 22,214 | — | — | 1.87 | 14 | |||||||||
(.18 | ) | 10.59 | 8.99 | 24,994 | — | — | 1.75 | 26 |
See accompanying notes which are an integral part of the financial statements.
2040 Strategy Fund 149
Russell Investment Company
2040 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 1,455 |
Shareholder servicing fees | 2,701 | |
$ | 4,156 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 1,375 | $ | 207 | $ | 160 | $ | (83 | ) $ | 74 | $ | 1,413 | $ | — | $ | — | ||||
Global Infrastructure Fund | 1,195 | 334 | 155 | (11 | ) | 78 | 1,441 | 21 | 35 | |||||||||||
Global Real Estate Securities Fund | 800 | 480 | 130 | (1 | ) | (36 | ) | 1,113 | 30 | 44 | ||||||||||
Select U.S. Equity Fund | 10,636 | 244 | 2,475 | 348 | 930 | 9,683 | 84 | — | ||||||||||||
U.S. Defensive Equity Fund | 1,194 | 116 | 115 | 9 | 30 | 1,234 | 7 | 84 | ||||||||||||
U.S. Dynamic Equity Fund | 1,986 | 136 | 1,369 | 133 | 41 | 927 | 13 | 79 | ||||||||||||
U.S. Small Cap Equity Fund | 3,385 | 277 | 711 | 282 | 269 | 3,502 | 23 | 7 | ||||||||||||
Strategic Bond Fund | 2,783 | 1,132 | 343 | — | (108 | ) | 3,464 | 89 | 16 | |||||||||||
Emerging Markets Fund | 3,184 | 972 | 583 | 96 | 253 | 3,922 | 40 | — | ||||||||||||
Global Equity Fund | 5,169 | 500 | 579 | 22 | 172 | 5,284 | 85 | 337 | ||||||||||||
Select International Equity Fund | 8,052 | 1,276 | 819 | (52 | ) | 756 | 9,213 | 192 | — | |||||||||||
$ | 39,759 | $ | 5,674 | $ | 7,439 | $ | 743 | $ | 2,459 | $ | 41,196 | $ | 584 | $ | 602 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 33,753,992 | ||
Unrealized Appreciation | $ | 7,777,754 | ||
Unrealized Depreciation | (335,585 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 7,442,169 |
See accompanying notes which are an integral part of the financial statements.
150 2040 Strategy Fund
Russell Investment Company
2045 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur ongoing costs, including | addition, if these transactional costs were included, your costs | |||||
distribution (12b-1) and/or service fees and other Fund expenses. | would have been higher. | |||||
The Example is intended to help you understand your ongoing | Hypothetical | |||||
costs (in dollars) of investing in the Fund and to compare these | Performance (5% | |||||
costs with the ongoing costs of investing in other mutual funds. | Actual | return before | ||||
The Example is based on an investment of $1,000 invested at the | Class R1 | Performance | expenses) | |||
Beginning Account Value | ||||||
beginning of the period and held for the entire period indicated, | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
which for this Fund is from November 1, 2016 to April 30, 2017. | Ending Account Value | |||||
April 30, 2017 | $ | 1,113.80 | $ | 1,024.79 | ||
Actual Expenses | Expenses Paid During Period* | $ | — | $ | — | |
The information in the table under the heading “Actual | ||||||
Performance” provides information about actual account values | * There were no expenses charged to the Class. | |||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
Class R4 | Performance | expenses) | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,112.10 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.31 | $ | 1.25 | ||
Hypothetical Example for Comparison Purposes | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | ||||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). | |||||
based on the Fund’s actual expense ratio and an assumed rate of | ||||||
Hypothetical | ||||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
actual return. The hypothetical account values and expenses | Actual | return before | ||||
may not be used to estimate the actual ending account balance or | Class R5 | Performance | expenses) | |||
expenses you paid for the period. You may use this information | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
funds. To do so, compare this 5% hypothetical example with the | April 30, 2017 | $ | 1,111.50 | $ | 1,022.32 | |
5% hypothetical examples that appear in the shareholder reports | Expenses Paid During Period* | $ | 2.62 | $ | 2.51 | |
of other funds. | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
2045 Strategy Fund 151
Russell Investment Company
2045 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 9.7% | ||||
Commodity Strategies Fund Class Y | 69,026 | 377 | ||
Global Infrastructure Fund Class Y | 32,002 | 380 | ||
Global Real Estate Securities Fund Class Y | 8,802 | 297 | ||
1,054 | ||||
Domestic Equities - 37.2% | ||||
Select U.S. Equity Fund Class Y | 207,316 | 2,558 | ||
U.S. Defensive Equity Fund Class Y | 6,427 | 326 | ||
U.S. Dynamic Equity Fund Class Y | 22,387 | 245 | ||
U.S. Small Cap Equity Fund Class Y | 28,754 | 926 | ||
4,055 | ||||
Fixed Income - 8.5% | ||||
Strategic Bond Fund Class Y | 87,077 | 921 | ||
International Equities - 44.6% | ||||
Emerging Markets Fund Class Y | 56,703 | 1,035 | ||
Global Equity Fund Class Y | 129,076 | 1,394 | ||
Select International Equity Fund Class Y | 261,381 | 2,432 | ||
4,861 | ||||
Total Investments in Affiliated Funds | ||||
(cost $8,962) | 10,891 | |||
Total Investments 100.0% | ||||
(identified cost $8,962) | 10,891 | |||
Other Assets and Liabilities, Net - (0.0%) | (2 | ) | ||
Net Assets - 100.0% | 10,889 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 10,891 | $ | — | $ | — | $ | — | $ | 10,891 | 100.0 | ||||
Total Investments | 10,891 | — | — | — | 10,891 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 | |||||||||||||||
* Less than 0.05% of net assets. |
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
152 2045 Strategy Fund
Russell Investment Company
2045 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 8,962 | |
Investments, at fair value(>) | 10,891 | ||
Receivables: | |||
Fund shares sold | 23 | ||
Total assets | 10,914 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 23 | ||
Accrued fees to affiliates | 2 | ||
Total liabilities | 25 | ||
Net Assets | $ | 10,889 | |
Net Assets Consist of: | |||
Accumulated net realized gain (loss) | $ | (62 | ) |
Unrealized appreciation (depreciation) on investments | 1,929 | ||
Shares of beneficial interest | 12 | ||
Additional paid-in capital | 9,010 | ||
Net Assets | $ | 10,889 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R1(#) | $ | 8.96 | |
Class R1 — Net assets | $ | 5,011,027 | |
Class R1 — Shares outstanding ($.01 par value) | 559,189 | ||
Net asset value per share: Class R4(#) | $ | 8.98 | |
Class R4 — Net assets | $ | 3,934,149 | |
Class R4 — Shares outstanding ($.01 par value) | 437,937 | ||
Net asset value per share: Class R5(#) | $ | 8.93 | |
Class R5 — Net assets | $ | 1,944,198 | |
Class R5 — Shares outstanding ($.01 par value) | 217,629 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 10,891 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
2045 Strategy Fund 153
Russell Investment Company
2045 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 166 |
Expenses | ||
Distribution fees - Class R5 | 3 | |
Shareholder servicing fees - Class R4 | 5 | |
Shareholder servicing fees - Class R5 | 3 | |
Total expenses | 11 | |
Net investment income (loss) | 155 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 217 | |
Capital gain distributions from affiliated funds | 172 | |
Net realized gain (loss) | 389 | |
Net change in unrealized appreciation (depreciation) on investments | 648 | |
Net realized and unrealized gain (loss) | 1,037 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 1,192 |
See accompanying notes which are an integral part of the financial statements.
154 2045 Strategy Fund
Russell Investment Company
2045 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 155 | $ | 238 | ||
Net realized gain (loss) | 389 | 130 | ||||
Net change in unrealized appreciation (depreciation) | 648 | (78 | ) | |||
Net increase (decrease) in net assets from operations | 1,192 | 290 | ||||
Distributions | ||||||
From net investment income | ||||||
Class R1 | (67 | ) | (96 | ) | ||
Class R4 | (48 | ) | (83 | ) | ||
Class R5 | (40 | ) | (60 | ) | ||
From net realized gain | ||||||
Class R1 | (108 | ) | (98 | ) | ||
Class R4 | (87 | ) | (93 | ) | ||
Class R5 | (79 | ) | (78 | ) | ||
Net decrease in net assets from distributions | (429 | ) | (508 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (1,463 | ) | (1,049 | ) | ||
Total Net Increase (Decrease) in Net Assets | (700 | ) | (1,267 | ) | ||
Net Assets | ||||||
Beginning of period | 11,589 | 12,856 | ||||
End of period | $ | 10,889 | $ | 11,589 |
See accompanying notes which are an integral part of the financial statements.
2045 Strategy Fund 155
Russell Investment Company
2045 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 83 | $ | 723 | 175 | $ | 1,431 | ||||||
Proceeds from reinvestment of distributions | 20 | 165 | 23 | 184 | ||||||||
Payments for shares redeemed | (58 | ) | (508 | ) | (317 | ) | (2,594 | ) | ||||
Net increase (decrease) | 45 | 380 | (119 | ) | (979 | ) | ||||||
Class R4 | ||||||||||||
Proceeds from shares sold | 53 | 455 | 126 | 1,027 | ||||||||
Proceeds from reinvestment of distributions | 16 | 135 | 22 | 176 | ||||||||
Payments for shares redeemed | (124 | ) | (1,063 | ) | (130 | ) | (1,073 | ) | ||||
Net increase (decrease) | (55 | ) | (473 | ) | 18 | 130 | ||||||
Class R5 | ||||||||||||
Proceeds from shares sold | 49 | 418 | 146 | 1,178 | ||||||||
Proceeds from reinvestment of distributions | 14 | 119 | 17 | 137 | ||||||||
Payments for shares redeemed | (225 | ) | (1,907 | ) | (186 | ) | (1,515 | ) | ||||
Net increase (decrease) | (162 | ) | (1,370 | ) | (23 | ) | (200 | ) | ||||
Total increase (decrease) | (172 | ) | $ | (1,463 | ) | (124 | ) | $ | (1,049 | ) |
See accompanying notes which are an integral part of the financial statements.
156 2045 Strategy Fund
(This page intentionally left blank)
Russell Investment Company
2045 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 8.36 | .12 | .81 | .93 | (.13 | ) | (.20 | ) | ||||||||
October 31, 2016 | 8.51 | .18 | .06 | .24 | (.19 | ) | (.20 | ) | ||||||||
October 31, 2015 | 11.16 | .16 | (.19 | ) | (.03 | ) | (.21 | ) | (2.41 | ) | ||||||
October 31, 2014 | 10.78 | .30 | .45 | .75 | (.28 | ) | (.09 | ) | ||||||||
October 31, 2013 | 9.29 | .18 | 1.67 | 1.85 | (.17 | ) | (.19 | ) | ||||||||
October 31, 2012 | 9.10 | .14 | .62 | .76 | (.16 | ) | (.41 | ) | ||||||||
Class R4(1) | ||||||||||||||||
April 30, 2017* | 8.38 | .11 | .80 | .91 | (.11 | ) | (.20 | ) | ||||||||
October 31, 2016 | 8.53 | .16 | .06 | .22 | (.17 | ) | (.20 | ) | ||||||||
October 31, 2015 | 11.18 | .16 | (.21 | ) | (.05 | ) | (.19 | ) | (2.41 | ) | ||||||
October 31, 2014 | 10.80 | .24 | .49 | .73 | (.26 | ) | (.09 | ) | ||||||||
October 31, 2013 | 9.30 | .15 | 1.69 | 1.84 | (.15 | ) | (.19 | ) | ||||||||
October 31, 2012 | 9.11 | .14 | .60 | .74 | (.14 | ) | (.41 | ) | ||||||||
Class R5(2) | ||||||||||||||||
April 30, 2017* | 8.33 | .14 | .76 | .90 | (.10 | ) | (.20 | ) | ||||||||
October 31, 2016 | 8.49 | .15 | .04 | .19 | (.15 | ) | (.20 | ) | ||||||||
October 31, 2015 | 11.13 | .14 | (.21 | ) | (.07 | ) | (.16 | ) | (2.41 | ) | ||||||
October 31, 2014 | 10.76 | .25 | .44 | .69 | (.23 | ) | (.09 | ) | ||||||||
October 31, 2013 | 9.27 | .12 | 1.69 | 1.81 | (.13 | ) | (.19 | ) | ||||||||
October 31, 2012 | 9.08 | .12 | .60 | .72 | (.12 | ) | (.41 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
158 2045 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.33 | ) | 8.96 | 11.38 | 5,011 | — | — | 1.42 | 20 | |||||||||
(.39 | ) | 8.36 | 3.05 | 4,302 | — | — | 2.27 | 28 | |||||||||
(2.62 | ) | 8.51 | (.65 | ) | 5,398 | — | — | 1.82 | 39 | ||||||||
(.37 | ) | 11.16 | 7.08 | 5,297 | — | — | 2.78 | 84 | |||||||||
(.36 | ) | 10.78 | 20.59 | 6,750 | — | — | 1.77 | 28 | |||||||||
(.57 | ) | 9.29 | 9.13 | 5,391 | — | — | 1.59 | 57 | |||||||||
(.31 | ) | 8.98 | 11.21 | 3,934 | .25 | .25 | 1.26 | 20 | |||||||||
(.37 | ) | 8.38 | 2.79 | 4,126 | .25 | .25 | 2.02 | 28 | |||||||||
(2.60 | ) | 8.53 | (.89 | ) | 4,043 | .25 | .25 | 1.74 | 39 | ||||||||
(.35 | ) | 11.18 | 6.80 | 4,111 | .25 | .25 | 2.16 | 84 | |||||||||
(.34 | ) | 10.80 | 20.37 | 3,404 | .25 | .25 | 1.48 | 28 | |||||||||
(.55 | ) | 9.30 | 8.82 | 2,796 | .25 | .25 | 1.58 | 57 | |||||||||
(.30 | ) | 8.93 | 11.15 | 1,944 | .50 | .50 | 1.69 | 20 | |||||||||
(.35 | ) | 8.33 | 2.42 | 3,161 | .50 | .50 | 1.81 | 28 | |||||||||
(2.57 | ) | 8.49 | (1.06 | ) | 3,415 | .50 | .50 | 1.54 | 39 | ||||||||
(.32 | ) | 11.13 | 6.48 | 4,252 | .50 | .50 | 2.24 | 84 | |||||||||
(.32 | ) | 10.76 | 20.07 | 6,123 | .50 | .50 | 1.26 | 28 | |||||||||
(.53 | ) | 9.27 | 8.56 | 3,603 | .50 | .50 | 1.30 | 57 |
See accompanying notes which are an integral part of the financial statements.
2045 Strategy Fund 159
Russell Investment Company
2045 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 396 |
Shareholder servicing fees | 1,191 | |
$ | 1,587 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 402 | $ | 89 | $ | 113 | $ | (14 | ) $ | 13 | $ | 377 | $ | — | $ | — | ||||
Global Infrastructure Fund | 348 | 114 | 97 | (8 | ) | 23 | 380 | 6 | 10 | |||||||||||
Global Real Estate Securities Fund | 233 | 144 | 70 | 1 | (11 | ) | 297 | 8 | 13 | |||||||||||
Select U.S. Equity Fund | 3,101 | 172 | 1,068 | 137 | 216 | 2,558 | 22 | — | ||||||||||||
U.S. Defensive Equity Fund | 348 | 48 | 80 | 18 | (8 | ) | 326 | 2 | 24 | |||||||||||
U.S. Dynamic Equity Fund | 579 | 59 | 442 | 41 | 8 | 245 | 4 | 22 | ||||||||||||
U.S. Small Cap Equity Fund | 984 | 123 | 338 | 55 | 102 | 926 | 7 | 2 | ||||||||||||
Strategic Bond Fund | 812 | 352 | 209 | (4 | ) | (30 | ) | 921 | 26 | 5 | ||||||||||
Emerging Markets Fund | 928 | 328 | 309 | (8 | ) | 96 | 1,035 | 12 | — | |||||||||||
Global Equity Fund | 1,507 | 253 | 414 | 37 | 11 | 1,394 | 24 | 96 | ||||||||||||
Select International Equity Fund | 2,349 | 570 | 677 | (38 | ) | 228 | 2,432 | 55 | — | |||||||||||
$ | 11,591 | $ | 2,252 | $ | 3,817 | $ | 217 | $ | 648 | $ | 10,891 | $ | 166 | $ | 172 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 9,428,844 | ||
Unrealized Appreciation | $ | 1,508,581 | ||
Unrealized Depreciation | (46,613 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 1,461,968 |
See accompanying notes which are an integral part of the financial statements.
160 2045 Strategy Fund
Russell Investment Company
2050 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur ongoing costs, including | addition, if these transactional costs were included, your costs | |||||
distribution (12b-1) and/or service fees and other Fund expenses. | would have been higher. | |||||
The Example is intended to help you understand your ongoing | Hypothetical | |||||
costs (in dollars) of investing in the Fund and to compare these | Performance (5% | |||||
costs with the ongoing costs of investing in other mutual funds. | Actual | return before | ||||
The Example is based on an investment of $1,000 invested at the | Class R1 | Performance | expenses) | |||
Beginning Account Value | ||||||
beginning of the period and held for the entire period indicated, | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
which for this Fund is from November 1, 2016 to April 30, 2017. | Ending Account Value | |||||
April 30, 2017 | $ | 1,114.80 | $ | 1,024.79 | ||
Actual Expenses | Expenses Paid During Period* | $ | — | $ | — | |
The information in the table under the heading “Actual | ||||||
Performance” provides information about actual account values | * There were no expenses charged to the Class. | |||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
Class R4 | Performance | expenses) | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,112.90 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.31 | $ | 1.25 | ||
Hypothetical Example for Comparison Purposes | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | ||||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). | |||||
based on the Fund’s actual expense ratio and an assumed rate of | ||||||
Hypothetical | ||||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
actual return. The hypothetical account values and expenses | Actual | return before | ||||
may not be used to estimate the actual ending account balance or | Class R5 | Performance | expenses) | |||
expenses you paid for the period. You may use this information | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
funds. To do so, compare this 5% hypothetical example with the | April 30, 2017 | $ | 1,111.00 | $ | 1,022.32 | |
5% hypothetical examples that appear in the shareholder reports | Expenses Paid During Period* | $ | 2.62 | $ | 2.51 | |
of other funds. | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
2050 Strategy Fund 161
Russell Investment Company
2050 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 9.7% | ||||
Commodity Strategies Fund Class Y | 72,266 | 395 | ||
Global Infrastructure Fund Class Y | 33,331 | 396 | ||
Global Real Estate Securities Fund Class Y | 9,202 | 310 | ||
1,101 | ||||
Domestic Equities - 37.2% | ||||
Select U.S. Equity Fund Class Y | 215,440 | 2,659 | ||
U.S. Defensive Equity Fund Class Y | 6,684 | 339 | ||
U.S. Dynamic Equity Fund Class Y | 23,263 | 254 | ||
U.S. Small Cap Equity Fund Class Y | 29,852 | 961 | ||
4,213 | ||||
Fixed Income - 8.5% | ||||
Strategic Bond Fund Class Y | 90,780 | 960 | ||
International Equities - 44.6% | ||||
Emerging Markets Fund Class Y | 58,899 | 1,076 | ||
Global Equity Fund Class Y | 133,818 | 1,445 | ||
Select International Equity Fund Class Y | 270,690 | 2,518 | ||
5,039 | ||||
Total Investments in Affiliated Funds | ||||
(cost $8,802) | 11,313 | |||
Total Investments 100.0% | ||||
(identified cost $8,802) | 11,313 | |||
Other Assets and Liabilities, Net - (0.0%) | (1 | ) | ||
Net Assets - 100.0% | 11,312 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 11,313 | $ | — | $ | — | $ | — | $ | 11,313 | 100.0 | ||||
Total Investments | 11,313 | — | — | — | 11,313 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 |
* Less than 0.05% of net assets.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
162 2050 Strategy Fund
Russell Investment Company
2050 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 8,802 | |
Investments, at fair value(>) | 11,313 | ||
Receivables: | |||
Fund shares sold | 27 | ||
Total assets | 11,340 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 27 | ||
Accrued fees to affiliates | 1 | ||
Total liabilities | 28 | ||
Net Assets | $ | 11,312 | |
Net Assets Consist of: | |||
Accumulated net realized gain (loss) | $ | (230 | ) |
Unrealized appreciation (depreciation) on investments | 2,511 | ||
Shares of beneficial interest | 18 | ||
Additional paid-in capital | 9,013 | ||
Net Assets | $ | 11,312 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R1(#) | $ | 6.45 | |
Class R1 — Net assets | $ | 7,064,639 | |
Class R1 — Shares outstanding ($.01 par value) | 1,096,009 | ||
Net asset value per share: Class R4(#) | $ | 6.47 | |
Class R4 — Net assets | $ | 2,350,555 | |
Class R4 — Shares outstanding ($.01 par value) | 363,576 | ||
Net asset value per share: Class R5(#) | $ | 6.44 | |
Class R5 — Net assets | $ | 1,896,973 | |
Class R5 — Shares outstanding ($.01 par value) | 294,613 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 11,313 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
2050 Strategy Fund 163
Russell Investment Company
2050 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 174 |
Expenses | ||
Distribution fees - Class R5 | 3 | |
Shareholder servicing fees - Class R4 | 3 | |
Shareholder servicing fees - Class R5 | 3 | |
Total expenses | 9 | |
Net investment income (loss) | 165 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 164 | |
Capital gain distributions from affiliated funds | 179 | |
Net realized gain (loss) | 343 | |
Net change in unrealized appreciation (depreciation) on investments | 733 | |
Net realized and unrealized gain (loss) | 1,076 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 1,241 |
See accompanying notes which are an integral part of the financial statements.
164 2050 Strategy Fund
Russell Investment Company
2050 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 165 | $ | 238 | ||
Net realized gain (loss) | 343 | 167 | ||||
Net change in unrealized appreciation (depreciation) | 733 | (97 | ) | |||
Net increase (decrease) in net assets from operations | 1,241 | 308 | ||||
Distributions | ||||||
From net investment income | ||||||
Class R1 | (92 | ) | (130 | ) | ||
Class R4 | (28 | ) | (50 | ) | ||
Class R5 | (45 | ) | (59 | ) | ||
From net realized gain | ||||||
Class R1 | (218 | ) | (248 | ) | ||
Class R4 | (73 | ) | (104 | ) | ||
Class R5 | (125 | ) | (141 | ) | ||
Net decrease in net assets from distributions | (581 | ) | (732 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (1,247 | ) | (45 | ) | ||
Total Net Increase (Decrease) in Net Assets | (587 | ) | (469 | ) | ||
Net Assets | ||||||
Beginning of period | 11,899 | 12,368 | ||||
End of period | $ | 11,312 | $ | 11,899 |
See accompanying notes which are an integral part of the financial statements.
2050 Strategy Fund 165
Russell Investment Company
2050 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 231 | $ | 1,447 | 800 | $ | 4,777 | ||||||
Proceeds from reinvestment of distributions | 51 | 310 | 65 | 378 | ||||||||
Payments for shares redeemed | (132 | ) | (827 | ) | (967 | ) | (5,787 | ) | ||||
Net increase (decrease) | 150 | 930 | (102 | ) | (632 | ) | ||||||
Class R4 | ||||||||||||
Proceeds from shares sold | 61 | 376 | 161 | 950 | ||||||||
Proceeds from reinvestment of distributions | 16 | 101 | 26 | 153 | ||||||||
Payments for shares redeemed | (156 | ) | (977 | ) | (126 | ) | (762 | ) | ||||
Net increase (decrease) | (79 | ) | (500 | ) | 61 | 341 | ||||||
Class R5 | ||||||||||||
Proceeds from shares sold | 62 | 383 | 190 | 1,114 | ||||||||
Proceeds from reinvestment of distributions | 28 | 170 | 35 | 200 | ||||||||
Payments for shares redeemed | (363 | ) | (2,230 | ) | (182 | ) | (1,068 | ) | ||||
Net increase (decrease) | (273 | ) | (1,677 | ) | 43 | 246 | ||||||
Total increase (decrease) | (202 | ) | $ | (1,247 | ) | 2 | $ | (45 | ) |
See accompanying notes which are an integral part of the financial statements.
166 2050 Strategy Fund
(This page intentionally left blank)
Russell Investment Company
2050 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 6.08 | .09 | .59 | .68 | (.09 | ) | (.22 | ) | ||||||||
October 31, 2016 | 6.32 | .14 | .04 | .18 | (.15 | ) | (.27 | ) | ||||||||
October 31, 2015 | 9.52 | .13 | (.14 | ) | (.01 | ) | (.17 | ) | (3.02 | ) | ||||||
October 31, 2014 | 9.20 | .27 | .37 | .64 | (.24 | ) | (.08 | ) | ||||||||
October 31, 2013 | 7.84 | .15 | 1.43 | 1.58 | (.15 | ) | (.07 | ) | ||||||||
October 31, 2012 | 9.19 | .11 | .48 | .59 | (.16 | ) | (1.78 | ) | ||||||||
Class R4(1) | ||||||||||||||||
April 30, 2017* | 6.10 | .08 | .59 | .67 | (.08 | ) | (.22 | ) | ||||||||
October 31, 2016 | 6.34 | .12 | .04 | .16 | (.13 | ) | (.27 | ) | ||||||||
October 31, 2015 | 9.54 | .11 | (.14 | ) | (.03 | ) | (.15 | ) | (3.02 | ) | ||||||
October 31, 2014 | 9.22 | .23 | .39 | .62 | (.22 | ) | (.08 | ) | ||||||||
October 31, 2013 | 7.85 | .12 | 1.45 | 1.57 | (.13 | ) | (.07 | ) | ||||||||
October 31, 2012 | 9.19 | .12 | .46 | .58 | (.14 | ) | (1.78 | ) | ||||||||
Class R5(2) | ||||||||||||||||
April 30, 2017* | 6.08 | .11 | .55 | .66 | (.08 | ) | (.22 | ) | ||||||||
October 31, 2016 | 6.32 | .11 | .04 | .15 | (.12 | ) | (.27 | ) | ||||||||
October 31, 2015 | 9.51 | .11 | (.15 | ) | (.04 | ) | (.13 | ) | (3.02 | ) | ||||||
October 31, 2014 | 9.20 | .21 | .38 | .59 | (.20 | ) | (.08 | ) | ||||||||
October 31, 2013 | 7.84 | .10 | 1.44 | 1.54 | (.11 | ) | (.07 | ) | ||||||||
October 31, 2012 | 9.18 | .11 | .44 | .55 | (.11 | ) | (1.78 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
168 2050 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.31 | ) | 6.45 | 11.48 | 7,065 | — | — | 1.41 | 22 | |||||||||
(.42 | ) | 6.08 | 3.07 | 5,749 | — | — | 2.36 | 53 | |||||||||
(3.19 | ) | 6.32 | (.66 | ) | 6,625 | — | — | 1.91 | 44 | ||||||||
(.32 | ) | 9.52 | 7.12 | 7,542 | — | — | 2.89 | 84 | |||||||||
(.22 | ) | 9.20 | 20.61 | 10,729 | — | — | 1.75 | 27 | |||||||||
(1.94 | ) | 7.84 | 9.00 | 8,731 | — | — | 1.44 | 78 | |||||||||
(.30 | ) | 6.47 | 11.29 | 2,350 | .25 | .25 | 1.21 | 22 | |||||||||
(.40 | ) | 6.10 | 2.82 | 2,697 | .25 | .25 | 1.97 | 53 | |||||||||
(3.17 | ) | 6.34 | (.90 | ) | 2,421 | .25 | .25 | 1.66 | 44 | ||||||||
(.30 | ) | 9.54 | 6.81 | 2,170 | .25 | .25 | 2.45 | 84 | |||||||||
(.20 | ) | 9.22 | 20.42 | 3,515 | .25 | .25 | 1.44 | 27 | |||||||||
(1.92 | ) | 7.85 | 8.82 | 2,658 | .25 | .25 | 1.52 | 78 | |||||||||
(.30 | ) | 6.44 | 11.10 | 1,897 | .50 | .50 | 1.76 | 22 | |||||||||
(.39 | ) | 6.08 | 2.57 | 3,453 | .50 | .50 | 1.79 | 53 | |||||||||
(3.15 | ) | 6.32 | (1.10 | ) | 3,322 | .50 | .50 | 1.61 | 44 | ||||||||
(.28 | ) | 9.51 | 6.51 | 5,523 | .50 | .50 | 2.20 | 84 | |||||||||
(.18 | ) | 9.20 | 20.03 | 5,649 | .50 | .50 | 1.17 | 27 | |||||||||
(1.89 | ) | 7.84 | 8.50 | 3,482 | .50 | .50 | 1.43 | 78 |
See accompanying notes which are an integral part of the financial statements.
2050 Strategy Fund 169
Russell Investment Company
2050 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 404 |
Shareholder servicing fees | 874 | |
$ | 1,278 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 413 | $ | 114 | $ | 131 | $ | (45 | ) $ | 44 | $ | 395 | $ | — | $ | — | ||||
Global Infrastructure Fund | 358 | 118 | 97 | (8 | ) | 25 | 396 | 6 | 10 | |||||||||||
Global Real Estate Securities Fund | 240 | 149 | 68 | (3 | ) | (8 | ) | 310 | 9 | 14 | ||||||||||
Select U.S. Equity Fund | 3,182 | 274 | 1,164 | 123 | 244 | 2,659 | 24 | — | ||||||||||||
U.S. Defensive Equity Fund | 357 | 56 | 84 | 2 | 8 | 339 | 2 | 25 | ||||||||||||
U.S. Dynamic Equity Fund | 594 | 77 | 467 | 41 | 9 | 254 | 4 | 23 | ||||||||||||
U.S. Small Cap Equity Fund | 1,014 | 160 | 375 | 79 | 83 | 961 | 7 | 2 | ||||||||||||
Strategic Bond Fund | 833 | 381 | 219 | (7 | ) | (28 | ) | 960 | 27 | 5 | ||||||||||
Emerging Markets Fund | 953 | 336 | 306 | 6 | 87 | 1,076 | 12 | — | ||||||||||||
Global Equity Fund | 1,547 | 283 | 434 | 17 | 32 | 1,445 | 25 | 100 | ||||||||||||
Select International Equity Fund | 2,409 | 586 | 673 | (41 | ) | 237 | 2,518 | 58 | — | |||||||||||
$ | 11,900 | $ | 2,534 | $ | 4,018 | $ | 164 | $ | 733 | $ | 11,313 | $ | 174 | $ | 179 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 9,423,781 | ||
Unrealized Appreciation | $ | 1,916,327 | ||
Unrealized Depreciation | (27,053 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 1,889,274 |
See accompanying notes which are an integral part of the financial statements.
170 2050 Strategy Fund
Russell Investment Company
2055 Strategy Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur ongoing costs, including | addition, if these transactional costs were included, your costs | |||||
distribution (12b-1) and/or service fees and other Fund expenses. | would have been higher. | |||||
The Example is intended to help you understand your ongoing | Hypothetical | |||||
costs (in dollars) of investing in the Fund and to compare these | Performance (5% | |||||
costs with the ongoing costs of investing in other mutual funds. | Actual | return before | ||||
The Example is based on an investment of $1,000 invested at the | Class R1 | Performance | expenses) | |||
Beginning Account Value | ||||||
beginning of the period and held for the entire period indicated, | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
which for this Fund is from November 1, 2016 to April 30, 2017. | Ending Account Value | |||||
April 30, 2017 | $ | 1,114.30 | $ | 1,024.79 | ||
Actual Expenses | Expenses Paid During Period* | $ | — | $ | — | |
The information in the table under the heading “Actual | ||||||
Performance” provides information about actual account values | * There were no expenses charged to the Class. | |||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
together with the amount you invested, to estimate the expenses | Performance (5% | |||||
that you paid over the period. Simply divide your account value by | Actual | return before | ||||
Class R4 | Performance | expenses) | ||||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
in the row entitled “Expenses Paid During Period” to estimate | Ending Account Value | |||||
the expenses you paid on your account during this period. | April 30, 2017 | $ | 1,112.60 | $ | 1,023.55 | |
Expenses Paid During Period* | $ | 1.31 | $ | 1.25 | ||
Hypothetical Example for Comparison Purposes | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | ||||||
The information in the table under the heading “Hypothetical | (representing the six month period annualized), multiplied by the average | |||||
Performance (5% return before expenses)” provides information | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
about hypothetical account values and hypothetical expenses | year period). | |||||
based on the Fund’s actual expense ratio and an assumed rate of | ||||||
Hypothetical | ||||||
return of 5% per year before expenses, which is not the Fund’s | Performance (5% | |||||
actual return. The hypothetical account values and expenses | Actual | return before | ||||
may not be used to estimate the actual ending account balance or | Class R5 | Performance | expenses) | |||
expenses you paid for the period. You may use this information | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
to compare the ongoing costs of investing in the Fund and other | Ending Account Value | |||||
funds. To do so, compare this 5% hypothetical example with the | April 30, 2017 | $ | 1,111.90 | $ | 1,022.32 | |
5% hypothetical examples that appear in the shareholder reports | Expenses Paid During Period* | $ | 2.62 | $ | 2.51 | |
of other funds. | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | ||||||
(representing the six month period annualized), multiplied by the average | ||||||
account value over the period, multiplied by 181/365 (to reflect the one-half | ||||||
year period). |
2055 Strategy Fund 171
Russell Investment Company
2055 Strategy Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | |||
Fair | |||
Value | |||
Shares | $ | ||
Investments in Affiliated Funds - 100.0% | |||
Alternative - 9.7% | |||
Commodity Strategies Fund Class Y | 24,059 | 131 | |
Global Infrastructure Fund Class Y | 11,048 | 131 | |
Global Real Estate Securities Fund Class Y | 3,061 | 103 | |
365 | |||
Domestic Equities - 37.3% | |||
Select U.S. Equity Fund Class Y | 71,476 | 882 | |
U.S. Defensive Equity Fund Class Y | 2,218 | 113 | |
U.S. Dynamic Equity Fund Class Y | 7,719 | 84 | |
U.S. Small Cap Equity Fund Class Y | 9,911 | 319 | |
1,398 | |||
Fixed Income - 8.5% | |||
Strategic Bond Fund Class Y | 30,154 | 319 | |
International Equities - 44.5% | |||
Emerging Markets Fund Class Y | 19,527 | 357 | |
Global Equity Fund Class Y | 44,309 | 479 | |
Select International Equity Fund Class Y | 89,795 | 835 | |
1,671 | |||
Total Investments in Affiliated Funds | |||
(cost $3,283) | 3,753 | ||
Total Investments 100.0% | |||
(identified cost $3,283) | 3,753 | ||
Other Assets and Liabilities, Net - 0.0% | 1 | ||
Net Assets - 100.0% | 3,754 |
Presentation of Portfolio Holdings | ||||||||||||||
Amounts in thousands | ||||||||||||||
Fair Value | ||||||||||||||
Practical | ||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | ||||||||
Investments in Affiliated Funds | $ | 3,753 | $ | — | $ | — | $ | — | $ | 3,753 | 100.0 | |||
Total Investments | 3,753 | — | — | — | 3,753 | 100.0 | ||||||||
Other Assets and Liabilities, Net | —* | |||||||||||||
100.0 |
* Less than 0.05% of net assets.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
172 2055 Strategy Fund
Russell Investment Company
2055 Strategy Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 3,283 | |
Investments, at fair value(>) | 3,753 | ||
Receivables: | |||
Fund shares sold | 17 | ||
Total assets | 3,770 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 16 | ||
Total liabilities | 16 | ||
Net Assets | $ | 3,754 | |
Net Assets Consist of: | |||
Accumulated net realized gain (loss) | $ | (57 | ) |
Unrealized appreciation (depreciation) on investments | 470 | ||
Shares of beneficial interest | 3 | ||
Additional paid-in capital | 3,338 | ||
Net Assets | $ | 3,754 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class R1(#) | $ | 11.88 | |
Class R1 — Net assets | $ | 2,325,356 | |
Class R1 — Shares outstanding ($.01 par value) | 195,764 | ||
Net asset value per share: Class R4(#) | $ | 11.89 | |
Class R4 — Net assets | $ | 887,209 | |
Class R4 — Shares outstanding ($.01 par value) | 74,591 | ||
Net asset value per share: Class R5(#) | $ | 11.86 | |
Class R5 — Net assets | $ | 541,047 | |
Class R5 — Shares outstanding ($.01 par value) | 45,631 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 3,753 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
2055 Strategy Fund 173
Russell Investment Company
2055 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | ||
Investment Income | ||
Income distributions from affiliated funds | $ | 55 |
Expenses | ||
Distribution fees - Class R5 | 1 | |
Shareholder servicing fees - Class R4 | 1 | |
Shareholder servicing fees - Class R5 | 1 | |
Total expenses | 3 | |
Net investment income (loss) | 52 | |
Net Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments | 22 | |
Capital gain distributions from affiliated funds | 57 | |
Net realized gain (loss) | 79 | |
Net change in unrealized appreciation (depreciation) on investments | 277 | |
Net realized and unrealized gain (loss) | 356 | |
Net Increase (Decrease) in Net Assets from Operations | $ | 408 |
See accompanying notes which are an integral part of the financial statements.
174 2055 Strategy Fund
Russell Investment Company
2055 Strategy Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 52 | $ | 86 | ||
Net realized gain (loss) | 79 | (41 | ) | |||
Net change in unrealized appreciation (depreciation) | 277 | 93 | ||||
Net increase (decrease) in net assets from operations | 408 | 138 | ||||
Distributions | ||||||
From net investment income | ||||||
Class R1 | (26 | ) | (34 | ) | ||
Class R4 | (12 | ) | (36 | ) | ||
Class R5 | (14 | ) | (16 | ) | ||
From net realized gain | ||||||
Class R1 | (23 | ) | (20 | ) | ||
Class R4 | (11 | ) | (26 | ) | ||
Class R5 | (15 | ) | (11 | ) | ||
Net decrease in net assets from distributions | (101 | ) | (143 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (669 | ) | (26 | ) | ||
Total Net Increase (Decrease) in Net Assets | (362 | ) | (31 | ) | ||
Net Assets | ||||||
Beginning of period | 4,116 | 4,147 | ||||
End of period | $ | 3,754 | $ | 4,116 |
See accompanying notes which are an integral part of the financial statements.
2055 Strategy Fund 175
Russell Investment Company
2055 Strategy Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | ||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||
Class R1 | |||||||||||||
Proceeds from shares sold | 64 | $ | 720 | 176 | $ | 1,898 | |||||||
Proceeds from reinvestment of distributions | 4 | 48 | 5 | 54 | |||||||||
Payments for shares redeemed | (45 | ) | (495 | ) | (134 | ) | (1,464 | ) | |||||
Net increase (decrease) | 23 | 273 | 47 | 488 | |||||||||
Class R4 | |||||||||||||
Proceeds from shares sold | 35 | 386 | 65 | 702 | |||||||||
Proceeds from reinvestment of distributions | 2 | 23 | 6 | 61 | |||||||||
Payments for shares redeemed | (67 | ) | (755 | ) | (141 | ) | (1,521 | ) | |||||
Net increase (decrease) | (30 | ) | (346 | ) | (70 | ) | (758 | ) | |||||
Class R5 | |||||||||||||
Proceeds from shares sold | 17 | 194 | 66 | 697 | |||||||||
Proceeds from reinvestment of distributions | 3 | 30 | 3 | 27 | |||||||||
Payments for shares redeemed | (73 | ) | (820 | ) | (46 | ) | (480 | ) | |||||
Net increase (decrease) | (53 | ) | (596 | ) | 23 | 244 | |||||||
Total increase (decrease) | (60 | ) | $ | (669 | ) | (—)** | $ | (26 | ) | ||||
** Less than 500 shares. |
See accompanying notes which are an integral part of the financial statements.
176 2055 Strategy Fund
(This page intentionally left blank)
Russell Investment Company
2055 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | ||||||||||||||||
$ | Net | $ | $ | $ | $ | |||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | |||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | |||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | |||||||||||
Class R1 | ||||||||||||||||
April 30, 2017* | 10.96 | .15 | 1.08 | 1.23 | (.16 | ) | (.15 | ) | ||||||||
October 31, 2016 | 11.05 | .23 | .08 | .31 | (.25 | ) | (.15 | ) | ||||||||
October 31, 2015 | 12.51 | .17 | (.21 | ) | (.04 | ) | (.24 | ) | (1.18 | ) | ||||||
October 31, 2014 | 12.04 | .34 | .49 | .83 | (.32 | ) | (.04 | ) | ||||||||
October 31, 2013 | 10.27 | .15 | 1.93 | 2.08 | (.19 | ) | (.12 | ) | ||||||||
October 31, 2012 | 9.63 | .16 | .68 | .84 | (.18 | ) | (.02 | ) | ||||||||
Class R4 (1) | ||||||||||||||||
April 30, 2017* | 10.97 | .14 | 1.08 | 1.22 | (.15 | ) | (.15 | ) | ||||||||
October 31, 2016 | 11.05 | .25 | .04 | .29 | (.22 | ) | (.15 | ) | ||||||||
October 31, 2015 | 12.52 | .19 | (.27 | ) | (.08 | ) | (.21 | ) | (1.18 | ) | ||||||
October 31, 2014 | 12.03 | .28 | .54 | .82 | (.29 | ) | (.04 | ) | ||||||||
October 31, 2013 | 10.27 | .16 | 1.88 | 2.04 | (.16 | ) | (.12 | ) | ||||||||
October 31, 2012 | 9.63 | .15 | .66 | .81 | (.15 | ) | (.02 | ) | ||||||||
Class R5 (2) | ||||||||||||||||
April 30, 2017* | 10.94 | .23 | .98 | 1.21 | (.14 | ) | (.15 | ) | ||||||||
October 31, 2016 | 11.04 | .17 | .09 | .26 | (.21 | ) | (.15 | ) | ||||||||
October 31, 2015 | 12.50 | .14 | (.24 | ) | (.10 | ) | (.18 | ) | (1.18 | ) | ||||||
October 31, 2014 | 12.03 | .22 | .56 | .78 | (.27 | ) | (.04 | ) | ||||||||
October 31, 2013 | 10.27 | .12 | 1.90 | 2.02 | (.14 | ) | (.12 | ) | ||||||||
October 31, 2012 | 9.63 | .11 | .68 | .79 | (.13 | ) | (.02 | ) | ||||||||
See accompanying notes which are an integral part of the financial statements.
178 2055 Strategy Fund
% | % | % | |||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | |||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | |||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | ||||||||||
Total Distributions | Period | Return(c) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | |||||||||
(.31 | ) | 11.88 | 11.43 | 2,326 | — | — | 1.28 | 38 | |||||||||
(.40 | ) | 10.96 | 3.02 | 1,887 | — | — | 2.17 | 76 | |||||||||
(1.42 | ) | 11.05 | (.52 | ) | 1,381 | — | — | 1.54 | 28 | ||||||||
(.36 | ) | 12.51 | 7.01 | 579 | — | — | 2.81 | 132 | |||||||||
(.31 | ) | 12.04 | 20.74 | 648 | — | — | 1.31 | 27 | |||||||||
(.20 | ) | 10.27 | 8.92 | 171 | — | — | 1.66 | 23 | |||||||||
(.30 | ) | 11.89 | 11.26 | 887 | .25 | .25 | 1.25 | 38 | |||||||||
(.37 | ) | 10.97 | 2.80 | 1,148 | .25 | .25 | 2.33 | 76 | |||||||||
(1.39 | ) | 11.05 | (.85 | ) | 1,932 | .25 | .25 | 1.63 | 28 | ||||||||
(.33 | ) | 12.52 | 6.93 | 1,554 | .25 | .25 | 2.26 | 132 | |||||||||
(.28 | ) | 12.03 | 20.35 | 1,290 | .25 | .25 | 1.43 | 27 | |||||||||
(.17 | ) | 10.27 | 8.64 | 957 | .25 | .25 | 1.48 | 23 | |||||||||
(.29 | ) | 11.86 | 11.19 | 541 | .50 | .50 | 2.00 | 38 | |||||||||
(.36 | ) | 10.94 | 2.53 | 1,081 | .50 | .50 | 1.62 | 76 | |||||||||
(1.36 | ) | 11.04 | (1.00 | ) | 834 | .50 | .50 | 1.25 | 28 | ||||||||
(.31 | ) | 12.50 | 6.55 | 712 | .50 | .50 | 1.80 | 132 | |||||||||
(.26 | ) | 12.03 | 20.09 | 407 | .50 | .50 | 1.04 | 27 | |||||||||
(.15 | ) | 10.27 | 8.41 | 233 | .50 | .50 | 1.08 | 23 |
See accompanying notes which are an integral part of the financial statements.
2055 Strategy Fund 179
Russell Investment Company
2055 Strategy Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 110 |
Shareholder servicing fees | 283 | |
$ | 393 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 144 | $ | 56 | $ | 70 | $ | (10 | ) $ | 11 | $ | 131 | $ | — | $ | — | ||||
Global Infrastructure Fund | 124 | 61 | 59 | (2 | ) | 7 | 131 | 2 | 3 | |||||||||||
Global Real Estate Securities Fund | 82 | 67 | 42 | (2 | ) | (2 | ) | 103 | 3 | 5 | ||||||||||
Select U.S. Equity Fund | 1,101 | 268 | 608 | 43 | 78 | 882 | 8 | — | ||||||||||||
U.S. Defensive Equity Fund | 124 | 39 | 54 | 1 | 3 | 113 | 1 | 8 | ||||||||||||
U.S. Dynamic Equity Fund | 206 | 53 | 193 | 14 | 4 | 84 | 1 | 7 | ||||||||||||
U.S. Small Cap Equity Fund | 350 | 105 | 190 | 10 | 44 | 319 | 2 | 1 | ||||||||||||
Strategic Bond Fund | 288 | 177 | 134 | (3 | ) | (9 | ) | 319 | 9 | 2 | ||||||||||
Emerging Markets Fund | 329 | 157 | 159 | 1 | 29 | 357 | 4 | — | ||||||||||||
Global Equity Fund | 535 | 169 | 243 | — | 18 | 479 | 8 | 31 | ||||||||||||
Select International Equity Fund | 834 | 313 | 376 | (30 | ) | 94 | 835 | 17 | — | |||||||||||
$ | 4,117 | $ | 1,465 | $ | 2,128 | $ | 22 | $ | 277 | $ | 3,753 | $ | 55 | $ | 57 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 3,437,409 | ||
Unrealized Appreciation | $ | 322,883 | ||
Unrealized Depreciation | (7,061 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 315,822 |
See accompanying notes which are an integral part of the financial statements.
180 2055 Strategy Fund
Russell Investment Company
In Retirement Fund
Shareholder Expense Example — April 30, 2017 (Unaudited)
Fund Expenses | Please note that the expenses shown in the table are meant | |||||
The following disclosure provides important information | to highlight your ongoing costs only and do not reflect any | |||||
regarding the Fund’s Shareholder Expense Example | transactional costs. Therefore, the information under the heading | |||||
(“Example”). | “Hypothetical Performance (5% return before expenses)” is | |||||
useful in comparing ongoing costs only, and will not help you | ||||||
Example | determine the relative total costs of owning different funds. In | |||||
As a shareholder of the Fund, you incur two types of costs: (1) | addition, if these transactional costs were included, your costs | |||||
transaction costs, including sales charges (loads) on certain | would have been higher. | |||||
purchase or redemption payments, and (2) ongoing costs, | Hypothetical | |||||
including distribution (12b-1) and/or service fees and other | Performance (5% | |||||
Fund expenses. The Example is intended to help you understand | Actual | return before | ||||
your ongoing costs (in dollars) of investing in the Fund and to | Class A | Performance | expenses) | |||
Beginning Account Value | ||||||
compare these costs with the ongoing costs of investing in other | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
mutual funds. The Example is based on an investment of $1,000 | Ending Account Value | |||||
invested at the beginning of the period and held for the entire | April 30, 2017 | $ | 1,034.20 | $ | 1,023.55 | |
period indicated, which for this Fund is from November 1, 2016 | Expenses Paid During Period* | $ | 1.26 | $ | 1.25 | |
to April 30, 2017. | * Expenses are equal to the Fund's annualized expense ratio of 0.25% | |||||
(representing the six month period annualized), multiplied by the average | ||||||
Actual Expenses | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
The information in the table under the heading “Actual | year period). | |||||
Performance” provides information about actual account values | ||||||
and actual expenses. You may use the information in this column, | Hypothetical | |||||
Performance (5% | ||||||
together with the amount you invested, to estimate the expenses | Actual | return before | ||||
that you paid over the period. Simply divide your account value by | Class R1 | Performance | expenses) | |||
$1,000 (for example, an $8,600 account value divided by $1,000 | Beginning Account Value | |||||
= 8.6), then multiply the result by the number in the first column | November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | ||||||
in the row entitled “Expenses Paid During Period” to estimate | April 30, 2017 | $ | 1,034.90 | $ | 1,024.79 | |
the expenses you paid on your account during this period. | Expenses Paid During Period* | $ | — | $ | — | |
Hypothetical Example for Comparison Purposes | * There were no expenses charged to the Class. | |||||
The information in the table under the heading “Hypothetical | ||||||
Hypothetical | ||||||
Performance (5% return before expenses)” provides information | Performance (5% | |||||
about hypothetical account values and hypothetical expenses | Actual | return before | ||||
based on the Fund’s actual expense ratio and an assumed rate of | Class R4 | Performance | expenses) | |||
return of 5% per year before expenses, which is not the Fund’s | Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | ||
actual return. The hypothetical account values and expenses | Ending Account Value | |||||
may not be used to estimate the actual ending account balance or | April 30, 2017 | $ | 1,033.60 | $ | 1,023.55 | |
expenses you paid for the period. You may use this information | Expenses Paid During Period* | $ | 1.26 | $ | 1.25 | |
to compare the ongoing costs of investing in the Fund and other | ||||||
* Expenses are equal to the Fund's annualized expense ratio of 0.25% | ||||||
funds. To do so, compare this 5% hypothetical example with the | (representing the six month period annualized), multiplied by the average | |||||
5% hypothetical examples that appear in the shareholder reports | account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
of other funds. | year period). |
In Retirement Fund 181
Russell Investment Company
In Retirement Fund
Shareholder Expense Example, continued — April 30, 2017 (Unaudited)
Hypothetical | |||||
Performance (5% | |||||
Actual | return before | ||||
Class R5 | Performance | expenses) | |||
Beginning Account Value | |||||
November 1, 2016 | $ | 1,000.00 | $ | 1,000.00 | |
Ending Account Value | |||||
April 30, 2017 | $ | 1,033.70 | $ | 1,022.32 | |
Expenses Paid During Period* | $ | 2.52 | $ | 2.51 | |
* Expenses are equal to the Fund's annualized expense ratio of 0.50% | |||||
(representing the six month period annualized), multiplied by the average | |||||
account value over the period, multiplied by 181/365 (to reflect the one-half | |||||
year period). |
182 In Retirement Fund
Russell Investment Company
In Retirement Fund
Schedule of Investments — April 30, 2017 (Unaudited)
Amounts in thousands (except share amounts) | ||||
Fair | ||||
Value | ||||
Shares | $ | |||
Investments in Affiliated Funds - 100.0% | ||||
Alternative - 6.2% | ||||
Commodity Strategies Fund Class Y | 105,696 | 577 | ||
Global Infrastructure Fund Class Y | 48,955 | 582 | ||
Global Real Estate Securities Fund Class Y | 15,096 | 509 | ||
1,668 | ||||
Domestic Equities - 12.6% | ||||
Select U.S. Equity Fund Class Y | 178,610 | 2,204 | ||
U.S. Defensive Equity Fund Class Y | 12,952 | 658 | ||
U.S. Dynamic Equity Fund Class Y | 1,963 | 21 | ||
U.S. Small Cap Equity Fund Class Y | 14,818 | 477 | ||
3,360 | ||||
Fixed Income - 66.8% | ||||
Global Opportunistic Credit Fund Class Y | 44,508 | 437 | ||
Investment Grade Bond Fund Class Y | 208,111 | 4,414 | ||
Short Duration Bond Fund Class Y | 181,387 | 3,477 | ||
Strategic Bond Fund Class Y | 904,522 | 9,571 | ||
17,899 | ||||
International Equities - 14.4% | ||||
Emerging Markets Fund Class Y | 32,504 | 594 | ||
Global Equity Fund Class Y | 102,335 | 1,105 | ||
Select International Equity Fund Class Y | 232,437 | 2,161 | ||
3,860 | ||||
Total Investments in Affiliated Funds | ||||
(cost $23,179) | 26,787 | |||
Total Investments 100.0% | ||||
(identified cost $23,179) | 26,787 | |||
Other Assets and Liabilities, Net - (0.0%) | (3 | ) | ||
Net Assets - 100.0% | 26,784 |
Presentation of Portfolio Holdings | |||||||||||||||
Amounts in thousands | |||||||||||||||
Fair Value | |||||||||||||||
Practical | |||||||||||||||
Portfolio Summary | Level 1 | Level 2 | Level 3 | Expedient | Total | % of Net Assets | |||||||||
Investments in Affiliated Funds | $ | 26,787 | $ | — | $ | — | $ | — | $ | 26,787 | 100.0 | ||||
Total Investments | 26,787 | — | — | — | 26,787 | 100.0 | |||||||||
Other Assets and Liabilities, Net | (—)* | ||||||||||||||
100.0 |
See accompanying notes which are an integral part of the financial statements.
In Retirement Fund 183
Russell Investment Company
In Retirement Fund
Schedule of Investments, continued — April 30, 2017 (Unaudited)
* Less than 0.05% of net assets.
For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended April 30, 2017, see note 2 in the Notes to
Financial Statements.
See accompanying notes which are an integral part of the financial statements.
184 In Retirement Fund
Russell Investment Company
In Retirement Fund
Statement of Assets and Liabilities — April 30, 2017 (Unaudited)
Amounts in thousands | |||
Assets | |||
Investments, at identified cost | $ | 23,179 | |
Investments, at fair value(>) | 26,787 | ||
Receivables: | |||
Fund shares sold | 13 | ||
Total assets | 26,800 | ||
Liabilities | |||
Payables: | |||
Investments purchased | 5 | ||
Fund shares redeemed | 8 | ||
Accrued fees to affiliates | 3 | ||
Total liabilities | 16 | ||
Net Assets | $ | 26,784 | |
Net Assets Consist of: | |||
Accumulated net realized gain (loss) | $ | (114 | ) |
Unrealized appreciation (depreciation) on investments | 3,608 | ||
Shares of beneficial interest | 37 | ||
Additional paid-in capital | 23,253 | ||
Net Assets | $ | 26,784 | |
Net Asset Value, offering and redemption price per share: | |||
Net asset value per share: Class A(#) | $ | 7.32 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | $ | 7.77 | |
Class A — Net assets | $ | 448,328 | |
Class A — Shares outstanding ($.01 par value) | 61,246 | ||
Net asset value per share: Class R1(#) | $ | 7.14 | |
Class R1 — Net assets | $ | 15,478,927 | |
Class R1 — Shares outstanding ($.01 par value) | 2,166,429 | ||
Net asset value per share: Class R4(#) | $ | 7.15 | |
Class R4 — Net assets | $ | 7,661,486 | |
Class R4 — Shares outstanding ($.01 par value) | 1,071,427 | ||
Net asset value per share: Class R5(#) | $ | 7.14 | |
Class R5 — Net assets | $ | 3,195,178 | |
Class R5 — Shares outstanding ($.01 par value) | 447,679 | ||
Amounts in thousands | |||
(>) Investments in affiliated funds | $ | 26,787 | |
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. |
See accompanying notes which are an integral part of the financial statements.
In Retirement Fund 185
Russell Investment Company
In Retirement Fund
Statement of Operations — For the Period Ended April 30, 2017 (Unaudited)
Amounts in thousands | |||
Investment Income | |||
Income distributions from affiliated funds | $ | 618 | |
Expenses | |||
Distribution fees - Class A | 1 | ||
Distribution fees - Class R5 | 4 | ||
Shareholder servicing fees - Class R4 | 9 | ||
Shareholder servicing fees - Class R5 | 4 | ||
Total expenses | 18 | ||
Net investment income (loss) | 600 | ||
Net Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investments | 264 | ||
Capital gain distributions from affiliated funds | 240 | ||
Net realized gain (loss) | 504 | ||
Net change in unrealized appreciation (depreciation) on investments | (191 | ) | |
Net realized and unrealized gain (loss) | 313 | ||
Net Increase (Decrease) in Net Assets from Operations | $ | 913 |
See accompanying notes which are an integral part of the financial statements.
186 In Retirement Fund
Russell Investment Company
In Retirement Fund
Statements of Changes in Net Assets
Period | ||||||
Ended April 30, 2017 | Fiscal Year Ended | |||||
Amounts in thousands | (Unaudited) | October 31, 2016 | ||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 600 | $ | 893 | ||
Net realized gain (loss) | 504 | 1,087 | ||||
Net change in unrealized appreciation (depreciation) | (191 | ) | (762 | ) | ||
Net increase (decrease) in net assets from operations | 913 | 1,218 | ||||
Distributions | ||||||
From net investment income | ||||||
Class A | (9 | ) | (12 | ) | ||
Class R1 | (361 | ) | (505 | ) | ||
Class R4 | (162 | ) | (245 | ) | ||
Class R5 | (68 | ) | (131 | ) | ||
From net realized gain | ||||||
Class A | (17 | ) | (19 | ) | ||
Class R1 | (620 | ) | (745 | ) | ||
Class R4 | (294 | ) | (394 | ) | ||
Class R5 | (132 | ) | (248 | ) | ||
Net decrease in net assets from distributions | (1,663 | ) | (2,299 | ) | ||
Share Transactions* | ||||||
Net increase (decrease) in net assets from share transactions | (971 | ) | (9,259 | ) | ||
Total Net Increase (Decrease) in Net Assets | (1,721 | ) | (10,340 | ) | ||
Net Assets | ||||||
Beginning of period | 28,505 | 38,845 | ||||
End of period | $ | 26,784 | $ | 28,505 |
See accompanying notes which are an integral part of the financial statements.
In Retirement Fund 187
Russell Investment Company
In Retirement Fund
Statements of Changes in Net Assets, continued
* Share transaction amounts (in thousands) for the periods ended April 30, 2017 and October 31, 2016 were as follows:
2017 (Unaudited) | 2016 | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||
Class A | ||||||||||||
Proceeds from shares sold | — | $ | — | — | $ | — | ||||||
Proceeds from reinvestment of distributions | 4 | 26 | 4 | 30 | ||||||||
Payments for shares redeemed | (2 | ) | (14 | ) | (4 | ) | (30 | ) | ||||
Net increase (decrease) | 2 | 12 | — | — | ||||||||
Class R1 | ||||||||||||
Proceeds from shares sold | 129 | 917 | 326 | 2,364 | ||||||||
Proceeds from reinvestment of distributions | 140 | 970 | 176 | 1,244 | ||||||||
Payments for shares redeemed | (312 | ) | (2,214 | ) | (1,236 | ) | (9,085 | ) | ||||
Net increase (decrease) | (43 | ) | (327 | ) | (734 | ) | (5,477 | ) | ||||
Class R4 | ||||||||||||
Proceeds from shares sold | 86 | 618 | 243 | 1,765 | ||||||||
Proceeds from reinvestment of distributions | 66 | 456 | 90 | 638 | ||||||||
Payments for shares redeemed | (205 | ) | (1,480 | ) | (366 | ) | (2,660 | ) | ||||
Net increase (decrease) | (53 | ) | (406 | ) | (33 | ) | (257 | ) | ||||
Class R5 | ||||||||||||
Proceeds from shares sold | 50 | 353 | 150 | 1,093 | ||||||||
Proceeds from reinvestment of distributions | 29 | 201 | 54 | 380 | ||||||||
Payments for shares redeemed | (113 | ) | (804 | ) | (682 | ) | (4,998 | ) | ||||
Net increase (decrease) | (34 | ) | (250 | ) | (478 | ) | (3,525 | ) | ||||
Total increase (decrease) | (128 | ) | $ | (971 | ) | (1,245 | ) | $ | (9,259 | ) |
See accompanying notes which are an integral part of the financial statements.
188 In Retirement Fund
(This page intentionally left blank)
Russell Investment Company
In Retirement Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
$ | |||||||||||||||
$ | Net | $ | $ | $ | $ | ||||||||||
Net Asset Value, | Investment | Net Realized | Total from | Distributions | Distributions | ||||||||||
Beginning of | Income (Loss) | and Unrealized | Investment | from Net | from Net | ||||||||||
Period | (a)(b)(e) | Gain (Loss) | Operations | Investment Income | Realized Gain | ||||||||||
Class A | |||||||||||||||
April 30, 2017* | 7.52 | .16 | .08 | .24 | (.16 | ) | (.28 | ) | |||||||
October 31, 2016 | 7.75 | .20 | .09 | .29 | (.20 | ) | (.32 | ) | |||||||
October 31, 2015 | 10.88 | .20 | (.13 | ) | .07 | (.23 | ) | (2.97 | ) | ||||||
October 31, 2014 | 11.05 | .17 | .33 | .50 | (.19 | ) | (.48 | ) | |||||||
October 31, 2013 | 10.74 | .36 | .29 | .65 | (.29 | ) | (.05 | ) | |||||||
October 31, 2012 | 10.10 | .25 | .55 | .80 | (.12 | ) | (.04 | ) | |||||||
Class R1 | |||||||||||||||
April 30, 2017* | 7.35 | .16 | .08 | .24 | (.17 | ) | (.28 | ) | |||||||
October 31, 2016 | 7.59 | .21 | .09 | .30 | (.22 | ) | (.32 | ) | |||||||
October 31, 2015 | 10.72 | .17 | (.08 | ) | .09 | (.25 | ) | (2.97 | ) | ||||||
October 31, 2014 | 10.90 | .21 | .31 | .52 | (.22 | ) | (.48 | ) | |||||||
October 31, 2013 | 10.60 | .33 | .34 | .67 | (.32 | ) | (.05 | ) | |||||||
October 31, 2012 | 10.10 | .27 | .55 | .82 | (.28 | ) | (.04 | ) | |||||||
Class R4(1) | |||||||||||||||
April 30, 2017* | 7.36 | .15 | .08 | .23 | (.16 | ) | (.28 | ) | |||||||
October 31, 2016 | 7.59 | .19 | .10 | .29 | (.20 | ) | (.32 | ) | |||||||
October 31, 2015 | 10.73 | .15 | (.09 | ) | .06 | (.23 | ) | (2.97 | ) | ||||||
October 31, 2014 | 10.90 | .17 | .33 | .50 | (.19 | ) | (.48 | ) | |||||||
October 31, 2013 | 10.60 | .32 | .32 | .64 | (.29 | ) | (.05 | ) | |||||||
October 31, 2012 | 10.10 | .27 | .52 | .79 | (.25 | ) | (.04 | ) | |||||||
Class R5(2) | |||||||||||||||
April 30, 2017* | 7.34 | .15 | .08 | .23 | (.15 | ) | (.28 | ) | |||||||
October 31, 2016 | 7.57 | .18 | .09 | .27 | (.18 | ) | (.32 | ) | |||||||
October 31, 2015 | 10.70 | .16 | (.12 | ) | .04 | (.20 | ) | (2.97 | ) | ||||||
October 31, 2014 | 10.88 | .16 | .30 | .46 | (.16 | ) | (.48 | ) | |||||||
October 31, 2013 | 10.58 | .27 | .34 | .61 | (.26 | ) | (.05 | ) | |||||||
October 31, 2012 | 10.08 | .24 | .53 | .77 | (.23 | ) | (.04 | ) | |||||||
See accompanying notes which are an integral part of the financial statements.
190 In Retirement Fund
% | % | % | ||||||||||||||
$ | $ | Ratio of Expenses | Ratio of Expenses | Ratio of Net | ||||||||||||
Net Asset Value, | % | Net Assets, | to Average | to Average | Investment Income | % | ||||||||||
$ | End of | Total | End of Period | Net Assets, | Net Assets, | to Average | Portfolio | |||||||||
Total Distributions | Period | Return(c)(d) | (000 | ) | Gross(f)(g) | Net(e)(f)(g) | Net Assets(b)(c)(e) | Turnover Rate(c) | ||||||||
(.44 | ) | 7.32 | 3.42 | 448 | .25 | .25 | 2.15 | 14 | ||||||||
(.52 | ) | 7.52 | 4.02 | 447 | .25 | .25 | 2.65 | 21 | ||||||||
(3.20 | ) | 7.75 | .69 | 459 | .25 | .25 | 2.39 | 56 | ||||||||
(.67 | ) | 10.88 | 4.75 | 486 | .25 | .25 | 1.60 | 34 | ||||||||
(.34 | ) | 11.05 | 6.15 | 493 | .25 | .25 | 3.30 | 19 | ||||||||
(.16 | ) | 10.74 | 8.01 | 1,035 | .25 | .25 | 2.43 | 20 | ||||||||
(.45 | ) | 7.14 | 3.49 | 15,479 | — | — | 2.29 | 14 | ||||||||
(.54 | ) | 7.35 | 4.24 | 16,242 | — | — | 2.90 | 21 | ||||||||
(3.22 | ) | 7.59 | .96 | 22,325 | — | — | 2.15 | 56 | ||||||||
(.70 | ) | 10.72 | 5.00 | 14,897 | — | — | 1.95 | 34 | ||||||||
(.37 | ) | 10.90 | 6.48 | 29,451 | — | — | 3.10 | 19 | ||||||||
(.32 | ) | 10.60 | 8.32 | 36,665 | — | — | 2.66 | 20 | ||||||||
(.44 | ) | 7.15 | 3.36 | 7,662 | .25 | .25 | 2.09 | 14 | ||||||||
(.52 | ) | 7.36 | 4.12 | 8,274 | .25 | .25 | 2.67 | 21 | ||||||||
(3.20 | ) | 7.59 | .59 | 8,789 | .25 | .25 | 1.95 | 56 | ||||||||
(.67 | ) | 10.73 | 4.81 | 5,804 | .25 | .25 | 1.56 | 34 | ||||||||
(.34 | ) | 10.90 | 6.16 | 7,818 | .25 | .25 | 2.95 | 19 | ||||||||
(.29 | ) | 10.60 | 8.05 | 10,996 | .25 | .25 | 2.59 | 20 | ||||||||
(.43 | ) | 7.14 | 3.37 | 3,195 | .50 | .50 | 2.10 | 14 | ||||||||
(.50 | ) | 7.34 | 3.81 | 3,542 | .50 | .50 | 2.54 | 21 | ||||||||
(3.17 | ) | 7.57 | .38 | 7,272 | .50 | .50 | 1.97 | 56 | ||||||||
(.64 | ) | 10.70 | 4.43 | 9,954 | .50 | .50 | 1.47 | 34 | ||||||||
(.31 | ) | 10.88 | 5.90 | 18,939 | .50 | .50 | 2.57 | 19 | ||||||||
(.27 | ) | 10.58 | 7.78 | 23,337 | .50 | .50 | 2.35 | 20 |
See accompanying notes which are an integral part of the financial statements.
In Retirement Fund 191
Russell Investment Company
In Retirement Fund
Related Party Transactions, Fees and Expenses
Accrued fees payable to affiliates for the period ended April 30, 2017 were as follows: | ||
Distribution fees | $ | 760 |
Shareholder servicing fees | 2,229 | |
$ | 2,989 |
Transactions (amounts in thousands) during the period ended April 30, 2017 with Underlying Funds which are, or were, an | ||||||||||||||||||||
affiliated company are as follows: | ||||||||||||||||||||
Fair Value, | Change in | |||||||||||||||||||
Beginning of | Realized Gain | Unrealized | Fair Value, End | Income | Capital Gains | |||||||||||||||
Period | Purchases | Sales | (Loss) | Gain (Loss) | of Period | Distributions | Distributions | |||||||||||||
Commodity Strategies Fund | $ | 609 | $ | 56 | $ | 85 | $ | (43 | ) $ | 40 | $ | 577 | $ | — | $ | — | ||||
Global Infrastructure Fund | 562 | 99 | 104 | (8 | ) | 33 | 582 | 9 | 15 | |||||||||||
Global Real Estate Securities Fund | 480 | 137 | 84 | 6 | (30 | ) | 509 | 16 | 26 | |||||||||||
Select U.S. Equity Fund | 2,731 | 135 | 975 | 128 | 185 | 2,204 | 19 | — | ||||||||||||
U.S. Defensive Equity Fund | 700 | 77 | 144 | 47 | (22 | ) | 658 | 4 | 46 | |||||||||||
U.S. Dynamic Equity Fund | 335 | 24 | 364 | 42 | (16 | ) | 21 | 2 | 12 | |||||||||||
U.S. Small Cap Equity Fund | 508 | 43 | 154 | 66 | 14 | 477 | 3 | 1 | ||||||||||||
Global Opportunistic Credit Fund | 948 | 51 | 556 | (5 | ) | (1 | ) | 437 | 21 | — | ||||||||||
Investment Grade Bond Fund | 3,852 | 1,161 | 419 | (7 | ) | (173 | ) | 4,414 | 141 | 111 | ||||||||||
Short Duration Bond Fund | 4,137 | 192 | 827 | 4 | (29 | ) | 3,477 | 33 | — | |||||||||||
Strategic Bond Fund | 9,982 | 1,048 | 1,039 | 28 | (448 | ) | 9,571 | 302 | 56 | |||||||||||
Emerging Markets Fund | 442 | 216 | 115 | 12 | 39 | 594 | 5 | — | ||||||||||||
Global Equity Fund | 1,212 | 155 | 306 | 30 | 14 | 1,105 | 18 | 73 | ||||||||||||
Select International Equity Fund | 2,011 | 421 | 438 | (36 | ) | 203 | 2,161 | 45 | — | |||||||||||
$ | 28,509 | $ | 3,815 | $ | 5,610 | $ | 264 | $ | (191 | ) $ | 26,787 | $ | 618 | $ | 240 |
Federal Income Taxes
At April 30, 2017, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments | $ | 23,808,195 | ||
Unrealized Appreciation | $ | 3,280,454 | ||
Unrealized Depreciation | (301,821 | ) | ||
Net Unrealized Appreciation (Depreciation) | $ | 2,978,633 |
See accompanying notes which are an integral part of the financial statements.
192 In Retirement Fund
Russell Investment Company
LifePoints® Funds
Notes to Schedules of Investments — April 30, 2017 (Unaudited)
Footnotes:
(å) Currency balances were pledged in connection with futures contracts purchased (sold), options written, or swaps entered into by the
Fund. See Statement of Assets and Liabilities.
(ÿ) Notional Amount in thousands.
(8) Unrounded units.
Foreign Currency Abbreviations:
ARS - Argentine peso HKD - Hong Kong dollar PKR - Pakistani rupee
AUD - Australian dollar HUF - Hungarian forint PLN - Polish zloty
BRL - Brazilian real IDR - Indonesian rupiah RON – Romanian New Leu
CAD - Canadian dollar ILS - Israeli shekel RUB - Russian ruble
CHF - Swiss franc INR - Indian rupee SEK - Swedish krona
CLP - Chilean peso ISK - Icelandic krona SGD - Singapore dollar
CNH – Chinese offshore spot ITL - Italian lira SKK - Slovakian koruna
CNY - Chinese renminbi yuan JPY - Japanese yen THB - Thai baht
COP - Colombian peso KES - Kenyan schilling TRY - Turkish lira
CRC - Costa Rican colon KRW - South Korean won TWD - Taiwanese dollar
CZK - Czech koruna MXN - Mexican peso USD - United States dollar
DKK - Danish krone MYR - Malaysian ringgit UYU – Uruguayan peso
DOP - Dominican peso NOK - Norwegian krone VEB - Venezuelan bolivar
EGP - Egyptian pound NGN – Nigerian naira VND - Vietnamese dong
EUR - Euro NZD - New Zealand dollar ZAR - South African rand
GBP - British pound sterling PEN - Peruvian nuevo sol
GHS - Ghana cedi PHP - Philippine peso
Notes to Schedules of Investments 193
Russell Investment Company
LifePoints® Funds
Notes to Financial Highlights — April 30, 2017 (Unaudited)
(*) For the period ended April 30, 2016 (Unaudited)
(1) As of October 1, 2014, Class R2 shares were reclassified as Class R4 shares and all shareholders were issued of Class R4. Class R2 shares are no
longer offered. The financial highlights for period ended October 31, 2014 reflect a consolidation of the financial activity of Class R2 shares for the
period November 1, 2013 through October 1, 2014 and the financial activity of Class R4 shares for the period October 2, 2014 through October 31,
2014. All prior periods reflect the financial activity of Class R2 shares.
(2) As of October 1, 2014, Class R3 shares were reclassified as Class R5 shares and all shareholders were issued of Class R5. Class R3 shares are no
longer offered. The financial highlights for period ended October 31, 2014 reflect a consolidation of the financial activity of Class R3 shares for the
period November 1, 2013 through October 1, 2014 and the financial activity of Class R4 shares for the period October 2, 2014 through October 31,
2014. All prior periods reflect the financial activity of Class R3 shares.
(a) Average daily shares outstanding were used for this calculation.
(b) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Underlying Funds in which the
Fund invests.
(c) The ratios for periods less than one year are not annualized.
(d) Total return for Class A does not reflect a front-end sales charge. If sales charges were included, the total return would be lower.
(e) May reflect amounts waived and/or reimbursed by Russell Investment Management, LLC (“RIM”) and/or Russell Investments Fund Services, LLC
(“RIFUS”).
(f) The ratios for periods less than one year are annualized.
(g) The calculation includes only those expenses charged directly to the Fund and does not include expenses charged to the Underlying Funds in which
the Fund invests.
(h) Less than $.01 per share.
194 Notes to Financial Highlights
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements — April 30, 2017 (Unaudited)
1. Organization
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 42 different investment
portfolios referred to as funds (each a “Fund” and collectively the “Funds”). These financial statements report on 14 of these
Funds. The Investment Company is registered under the Investment Company Act of 1940, as amended (“Investment Company
Act”), as an open-end management investment company. It is organized and operated as a Massachusetts business trust under a
Second Amended and Restated Master Trust Agreement dated October 1, 2008, as amended (“Master Trust Agreement”), and the
provisions of Massachusetts law governing the operation of a Massachusetts business trust. The Investment Company’s Master Trust
Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest. Each of the
Funds is diversified. Under the Investment Company Act, a diversified company is defined as a management company which meets
the following requirements: at least 75% of the value of its total assets is represented by cash and cash items (including receivables),
government securities, securities of other investment companies, and other securities for the purposes of this calculation limited
in respect of any one issuer to an amount not greater in value than five percent of the value of the total assets of such management
company and to not more than 10% of the outstanding voting securities of such issuer.
Target Portfolio Funds
Each of the Target Portfolio Funds listed in the table below is a “fund of funds” and diversifies its assets by investing principally,
at present, in shares of several other RIC Funds (the “Underlying Funds”). Each Fund seeks to achieve its specific investment
objective by investing in different combinations of Underlying Funds. In addition to investing in the Underlying Funds, Russell
Investment Management, LLC ("RIM"), the Funds' investment adviser, may seek to actively manage the Funds' overall exposure
by investing in derivatives, including futures, options, forwards and swaps, that RIM believes will achieve the desired risk/return
profile for the Funds. The Funds may hold cash in connection with these investments. The Funds usually, but not always, pursue
a strategy of being fully invested by exposing their cash to the performance of segments of the global equity market by purchasing
index futures contracts (also known as "equitization"). The following table shows each Fund's target strategic asset allocation to
equity, fixed income, alternative and multi-asset asset classes effective on or about March 1, 2017. As of April 30, 2017, the equity
Underlying Funds in which the Funds may invest include the U.S. Defensive Equity, U.S. Dynamic Equity, U.S. Small Cap Equity,
Select U.S. Equity, Global Equity, Emerging Markets and Select International Equity Funds. The fixed income Underlying Funds
in which the Funds may invest include the Global Opportunistic Credit, Unconstrained Total Return, Strategic Bond, Investment
Grade Bond and Short Duration Bond Funds. The multi-asset Underlying Funds in which the Funds may invest include the
Multi-Strategy Income Fund. The alternative Underlying Funds in which the Funds may invest include the Commodity Strategies,
Global Infrastructure and Global Real Estate Securities Funds. Each Fund intends its strategy of investing in combinations of
equity, fixed income, alternative and multi-asset Underlying Funds to result in investment diversification that an investor could
otherwise achieve only by holding numerous individual investments. A Fund’s actual allocation may vary from the target strategic
asset allocation at any point in time (1) due to market movements, (2) by up to +/- 5% at the equity, fixed income, alternative or
multi-asset category level based on RIM’s capital markets research, and/or (3) due to the implementation over a period of time of
a change to the target strategic asset allocation including the addition of a new Underlying Fund. There may be no changes in the
asset allocation or to the Underlying Funds in a given year or such changes may be made one or more times in a year.
The following table shows the Target Portfolio Funds’ approximate expected target strategic asset allocations to equity, fixed income,
alternative and multi-asset asset classes effective on or about March 1, 2017.
Asset Allocation* | |||||||||||
Conservative | Moderate | Balanced | Growth | Equity Growth | |||||||
Asset Allocation* | Strategy Fund | Strategy Fund | Strategy Fund | Strategy Fund | Strategy Fund | ||||||
Equity | 8 | % | 29.5 | % | 51 | % | 70 | % | 85 | % | |
Fixed Income | 63 | % | 53 | % | 38 | % | 22 | % | 7 | % | |
Multi-Asset | 23 | % | 10 | % | 4 | % | 0 | % | 0 | % | |
Alternative# | 6 | % | 7.5 | % | 7 | % | 8 | % | 8 | % | |
* | As described above, actual asset allocation may vary. | ||||||||||
# | Alternative Underlying Funds pursue investment strategies that differ from those of traditional broad market equity or fixed income funds. |
Target Date Funds
Each of the Target Date Funds listed in the table below is a “fund of funds” and seeks to achieve its objective by investing in
shares of several of the Underlying Funds which represent various asset classes. Each Fund currently intends to invest only in the
Notes to Financial Statements 195
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Underlying Funds. The following table shows each Fund’s target strategic asset allocation to equity Underlying Funds, fixed income
Underlying Funds and alternative Underlying Funds. As of April 30, 2017, the equity Underlying Funds in which the Funds may
invest include the U.S. Defensive Equity, U.S. Dynamic Equity, Select U.S. Equity, U.S. Small Cap Equity, Global Equity, Select
International Equity and Emerging Markets Funds. The fixed income Underlying Funds in which the Funds may invest include the
Global Opportunistic Credit, Strategic Bond, Investment Grade Bond and Short Duration Bond Funds. The alternative Underlying
Funds in which the Funds may invest include the Commodity Strategies, Global Infrastructure and Global Real Estate Securities
Funds. The 2020 Strategy, 2025 Strategy, 2030 Strategy, 2035 Strategy, 2040 Strategy, 2045 Strategy, 2050 Strategy and 2055
Strategy Funds are referred to herein as the “Strategy Funds.” The allocation of each Strategy Fund’s assets to the Underlying
Funds in which it invests will become more conservative over time until approximately the year indicated in the Fund name, the
“target year,” at which time the allocation will remain fixed. The Strategy Funds are designed for investors who plan to retire close
to the target year indicated in the Fund name. The allocation of the In Retirement Fund’s assets to the Underlying Funds in which
it invests does not shift over time. The In Retirement Fund is intended for investors who have reached retirement age and are no
longer contributing to their retirement savings. A Fund’s actual allocation may vary from the target strategic asset allocation at any
point in time (1) due to market movements, (2) by up to +/- 5% at the equity, fixed income or alternative category level based on
RIM’s capital markets research, and/or (3) due to the implementation over a period of time of a change to the target strategic asset
allocation including the addition of a new Underlying Fund. There may be no changes in the asset allocation or to the Underlying
Funds in a given year or such changes may be made one or more times in a year.
The following table shows the Target Date Funds’ approximate expected allocations to equity Underlying Funds, fixed income
Underlying Funds and alternative Underlying Funds effective on or about March 1, 2017.
2020 | 2025 | 2030 | 2035 | ||||||||
Asset Allocation* | Strategy Fund | Strategy Fund | Strategy Fund | Strategy Fund | |||||||
Alternative Underlying Funds# | 6.6 | % | 7.2 | % | 7.8 | % | 9 | % | |||
Equity Underlying Funds | 33 | % | 42.6 | % | 54.5 | % | 67 | % | |||
Fixed Income Underlying Funds | 60.4 | % | 50.2 | % | 37.7 | % | 24 | % | |||
2040 | 2045 | 2050 | 2055 | In Retirement | |||||||
Asset Allocation* | Strategy Fund | Strategy Fund | Strategy Fund | Strategy Fund | Fund | ||||||
Alternative Underlying Funds# | 10.5 | % | 10.5 | % | 10.5 | % | 10.5 | % | 6.6 | % | |
Equity Underlying Funds | 82.5 | % | 82.5 | % | 82.5 | % | 82.5 | % | 27.1 | % | |
Fixed Income Underlying Funds | 7 | % | 7 | % | 7 | % | 7 | % | 66.3 | % | |
* | As described above, actual asset allocation may vary. | ||||||||||
# | Alternative Underlying Funds pursue investment strategies that differ from those of traditional broad market equity or fixed income funds. |
2. Significant Accounting Policies
The Funds’ financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”)
which require the use of management estimates and assumptions at the date of the financial statements. Actual results could differ
from those estimates. The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting
guidance applicable to investment companies. The following is a summary of the significant accounting policies consistently
followed by each Fund in the preparation of its financial statements.
In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, “final
rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final
rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial
statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017.
Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Funds'
financial statements and related disclosures.
Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair
value procedures. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell
Investments Fund Services, LLC (“RIFUS”). The Funds value the shares of the Underlying Funds at the current net asset value
("NAV") per share of each Underlying Fund. The Funds have adopted the authoritative guidance under U.S. GAAP for estimating
196 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
the fair value of investments in funds that have calculated NAV per share in accordance with the specialized accounting guidance
for investment companies. Accordingly, the Funds estimate the fair value of an investment in a fund using the NAV per share
without further adjustment as a practical expedient, if the NAV per share of the investment is determined in accordance with the
specialized accounting guidance for investment companies as of the reporting entity’s measurement date.
U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to
valuation methods and requires a separate disclosure of the fair value hierarchy for each major category of assets and liabilities,
that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy
are defined as follows:
• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.
• Level 2 — Inputs other than quoted prices included within Level 1 that are observable, which may include, but are not
limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets
or liabilities in markets that are not active, and inputs such as interest rates, yield curves, implied volatilities, credit spreads
or other market corroborated inputs.
• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available, which may include assumptions made by RIFUS, acting at the discretion of the Board,
that are used in determining the fair value of investments.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for
example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and
other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or
unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised
in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that
is significant to the fair value measurement in its entirety.
The valuation techniques and significant inputs used in determining the fair market values of financial instruments categorized as
Level 1 and Level 2 of the fair value hierarchy are as follows:
Derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements
that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors.
Derivatives may be classified into two groups depending upon the way that they are traded: privately traded over-the-counter
(“OTC”) derivatives that do not go through an exchange or intermediary and exchange-traded derivatives that are traded through
specialized derivatives exchanges or other regulated exchanges. OTC derivatives are normally valued on the basis of broker dealer
quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative
instrument can be estimated by a pricing service provider using a series of techniques, including simulation pricing models.
The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest
rates, yield curves, dividends and exchange rates. OTC derivatives that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy, with the exception of foreign currency spot contracts which
are categorized as Level 1 of the fair value hierarchy. OTC derivatives that use broker dealer quotations are categorized as level 3 of
the fair value hierarchy. Exchange-traded derivatives are valued based on the last reported sales price on the day of valuation and
are categorized as Level 1 of the fair value hierarchy.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at
the daily settlement price determined by the respective exchange. For centrally cleared credit default swaps, the clearing facility
requires its members to provide actionable levels across complete term structures. These levels along with external third party
prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally
cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index
swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are
categorized as Level 2 of the fair value hierarchy.
Notes to Financial Statements 197
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Level 3 Fair Value Investments
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of
the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available, or are not reliable, are valued at fair value as
determined in good faith by RIFUS and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not
readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or
broker quotes). When RIFUS applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV,
securities will not be priced on the basis of quotes from the primary market in which they are traded, but instead may be priced by
another method that RIFUS believes accurately reflects fair value and will be categorized as Level 3 of the fair value hierarchy. Fair
value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot
guarantee that fair values determined by RIFUS would accurately reflect the price that a Fund could obtain for a security if it were
to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ
from the value that would be realized if the security was sold.
RIFUS employs third party pricing vendors to provide fair value measurements. RIFUS oversees third-party pricing service
providers in order to support the valuation process throughout the year.
If third party evaluated vendor pricing is neither available nor deemed to be indicative of fair value, RIFUS may elect to obtain
indicative market quotations (“broker quotes”) directly from the broker or passed through from a third party vendor. In the event
that the source of fair value is from a single source broker quote, these securities are classified as Level 3 per the fair value
hierarchy. Broker quotes are typically received from established market participants. Although independently received on a daily
basis, RIFUS does not have the transparency to view the underlying inputs which support the broker quotes. Significant changes
in the broker quote would have direct and proportional changes in the fair value of the security. There is a third-party pricing
exception to the quantitative disclosure requirement when prices are not determined by the reporting entity. RIFUS is exercising
this exception and has made a reasonable attempt to obtain quantitative information from the third party pricing vendors regarding
the unobservable inputs used.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances
for reported fair values that present changes attributable to total realized and unrealized gains or losses, purchases and sales, and
transfers in/out of the Level 3 category during the period. Additionally, U.S. GAAP requires quantitative information regarding the
significant unobservable inputs used in the determination of fair value of assets categorized as Level 3 in the fair value hierarchy. In
accordance with the requirements of U.S. GAAP, a fair value hierarchy, a Level 3 reconciliation and an additional disclosure about
fair value measurements, if any, has been included in the Presentation of Portfolio Holdings for each respective Fund.
Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the
financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities
transactions, if applicable, are recorded on the basis of specific identified cost incurred within a particular Fund.
Investment Income
Distributions of income and capital gains from the Underlying Funds are recorded on the ex-dividend date.
Federal Income Taxes
Since the Investment Company is a Massachusetts business trust, each Fund is a separate corporate taxpayer and determines its
net investment income and capital gains (or losses) and the amounts to be distributed to each Fund’s shareholders without regard
to the income and capital gains (or losses) of the other Funds.
For each year, each Fund intends to qualify or continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended (the “Code”) and intends to distribute all of its taxable income and capital gains.
Therefore, no federal income tax provision is required for the Funds.
Each Fund files a U.S. tax return. At April 30, 2017, the Funds had recorded no liabilities for net unrecognized tax benefits
relating to uncertain income tax positions they have taken or expect to take in future tax returns. While the statute of limitations
remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ended October 31, 2014 through October 31, 2016,
198 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The Funds comply with the authoritative guidance for uncertainty in income taxes which requires management to determine whether
a tax position of the Funds is more likely than not to be sustained upon examination, including resolution of any related appeals or
litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the
tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being
realized upon ultimate settlement with the relevant taxing authority. Management determined that no accruals need to be made in
the financial statements due to uncertain tax positions. Management continually reviews and adjusts the Funds’ liability for income
taxes based on analyses of tax laws and regulations, as well as their interpretations, and other relevant factors.
Dividends and Distributions to Shareholders
Income dividends, capital gain distributions and return of capital, if any, are recorded on the ex-dividend date. Income dividends
are generally declared and paid quarterly. Capital gain distributions are generally declared and paid annually. An additional
distribution may be paid by the Funds to avoid imposition of federal income and excise tax on any remaining undistributed capital
gains and net investment income.
The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax
regulations which may differ from U.S. GAAP. As a result, net investment income and net realized gain (or loss) from investment
transactions for a reporting period may differ significantly from distributions during such period. The differences between tax
regulations and U.S. GAAP primarily relate to investments in options, futures, forward contracts, swap contracts, the Underlying
Funds sold at a loss, wash sale deferrals and capital loss carryforwards. Accordingly, the Funds may periodically make reclassifications
among certain of their capital accounts without impacting their NAVs.
Expenses
Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include those expenses
incurred by the Underlying Funds. Because the Underlying Funds have varied expense and fee levels and the Funds may own
different proportions of the Underlying Funds at different times, the amount of the Underlying Funds’ fees and expenses incurred
indirectly by the Funds will vary.
The Funds pay their own expenses other than those expressly assumed by RIM, the Funds’ adviser, or RIFUS. Most expenses can
be directly attributed to the individual Funds. Expenses which cannot be directly attributed to a specific Fund are allocated among
all Funds principally based on their relative net assets.
Derivatives
The Target Portfolio Funds may invest in derivatives. Derivatives are instruments or agreements whose value is derived from an
underlying security or index. They include options, futures, swaps and forwards. These instruments offer unique characteristics and
risks that facilitate the Target Portfolio Funds’ investment strategies.
The Target Portfolio Funds typically use derivatives in three ways: exposing cash to markets, hedging and return enhancement. In
addition, the Target Portfolio Funds may enter into foreign exchange contracts for trade settlement purposes. The Target Portfolio
Funds may pursue their strategy of being fully invested by exposing cash to the performance of segments of the global equity market
by purchasing index futures contracts. This is intended to cause the Target Portfolio Funds to perform as though cash were actually
invested in the global equity market.
Hedging may be used by the Target Portfolio Funds to limit or control risks, such as adverse movements in exchange rates and
interest rates. Return enhancement can be accomplished through the use of derivatives in a Target Portfolio Fund, including
using derivatives as a substitute for holding physical securities, and using them to express various macro views (e.g., interest rate
movements, currency movements, and macro credit strategies). By purchasing certain instruments, the Target Portfolio Funds may
more effectively achieve the desired portfolio characteristics that assist them in meeting their investment objectives. Depending
on how the derivatives are structured and utilized, the risks associated with them may vary widely. These risks include, but are not
limited to, market risk, liquidity risk, leveraging risk, counterparty risk, basis risk, reinvestment risk, political risk, prepayment
risk, extension risk, valuation risk and credit risk.
Futures, certain options and cleared swaps are traded or cleared on an exchange or central exchange clearing house. Exchange-
traded or exchange-cleared transactions generally present less counterparty risk to a Fund. The exchange’s clearing house stands
Notes to Financial Statements 199
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
between the Target Portfolio Fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the
clearing house and the clearing member. Cleared swap contracts are subject to clearing house rules, including initial and variation
margin requirement, daily settlement of obligations and the clearing house guarantee of payments to the broker. There is, however,
still counterparty risk due to the insolvency of the broker with respect to any margin held in the brokers’ customer accounts.
While clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be
a shortfall in the amount of margin held by the broker for its clients. Collateral and margin requirements for exchange-traded or
exchange-cleared derivatives are established through regulation, as well as set by the broker or applicable clearing house. Margin
for exchange-traded and exchange-cleared transactions are detailed in the Statements of Assets and Liabilities as cash held at the
broker for futures contracts and cash held at the broker for swap contracts, respectively. Securities pledged by a Target Portfolio
Fund for exchange-traded and exchange-cleared transactions are noted as collateral or margin requirements in the Schedule of
Investments. Typically, the Target Portfolio Funds and counterparties are not permitted to sell, repledge, rehypothecate or otherwise
use collateral pledged by the other party unless explicitly permitted by each respective governing agreement.
In December 2015, the SEC proposed new regulations applicable to a mutual fund's use of derivatives. If adopted as proposed, these
regulations could potentially limit or impact a Fund's ability to invest in derivatives and negatively affect the Fund's performance
and ability to pursue its stated investment objectives.
The effects of derivative instruments, categorized by risk exposure, on the Statements of Assets and Liabilities and the Statements
of Operations, for the period ended April 30, 2017, if applicable, are disclosed in the Fair Value of Derivative Instruments table
following each applicable Fund’s Schedule of Investments.
Foreign Currency Exchange Contracts
The Target Portfolio Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts
(“FX contracts”). From time to time, the Target Portfolio Funds may enter into FX contracts to hedge certain foreign currency-
denominated assets. FX contracts are recorded at fair value. Certain risks may arise upon entering into these FX contracts from the
potential inability of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized
gain on the FX contracts, if any, that are disclosed in the Statements of Assets and Liabilities.
For the period ended April 30, 2017, the following Funds entered into foreign currency exchange contracts primarily for the
strategies listed below:
Funds | Strategies |
Conservative Strategy Fund | Return enhancement and hedging |
Moderate Strategy Fund | Return enhancement and hedging |
Balanced Strategy Fund | Return enhancement and hedging |
Growth Strategy Fund | Return enhancement and hedging |
Equity Growth Strategy Fund | Return enhancement and hedging |
The Target Portfolio Funds’ foreign currency contract notional dollar values outstanding fluctuate throughout the fiscal year as
required to meet strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the
purpose of this disclosure, volume is measured by the amounts bought and sold in USD.
Outstanding Contract Amounts Sold | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
Conservative Strategy Fund | $ | 32,034,551 | $ | 30,870,965 | ||
Moderate Strategy Fund | 106,698,176 | 112,894,431 | ||||
Balanced Strategy Fund | 587,073,313 | 637,611,073 | ||||
Growth Strategy Fund | 402,933,919 | 436,854,770 | ||||
Equity Growth Strategy Fund | 203,192,614 | 229,067,903 |
200 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Outstanding Contract Amounts Bought | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
Conservative Strategy Fund | $ | 31,737,688 | $ | 30,713,976 | ||
Moderate Strategy Fund | 105,678,660 | 112,846,578 | ||||
Balanced Strategy Fund | 581,568,081 | 636,970,313 | ||||
Growth Strategy Fund | 398,990,787 | 437,208,656 | ||||
Equity Growth Strategy Fund | 201,505,953 | 229,022,431 |
Options
The Target Portfolio Funds may purchase and sell (write) call and put options on securities and securities indices. Such options are
traded on a national securities exchange or in an OTC market. The Funds may also purchase and sell (write) call and put options
on foreign currencies.
When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s
Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-
to-market to reflect the current fair value of the option written. The Fund receives a premium on the sale of a call option but gives
up the opportunity to profit from any increase in the value of the underlying instrument above the exercise price of the option, and
when the Fund writes a put option it is exposed to a decline in the price of the underlying instrument.
When a Fund sells an uncovered call option, it does not simultaneously have a long position in the underlying security. When a
Fund sells an uncovered put option, it does not simultaneously have a short position in the underlying security. Uncovered options
are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge.
Whether an option which the Fund has written expires on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the
option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security, and the proceeds from such sale are increased by the premium originally received. When a put option which
a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which a Fund
purchases upon exercise of the option.
The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to
market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price
of the underlying securities and interest rates.
The Target Portfolio Funds may enter into a swaption (an option on a swap). In a swaption, in exchange for an option, the buyer gains
the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the
contract receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying swap.
For the period ended April 30, 2017, the Target Portfolio Funds purchased or sold options primarily for the strategies listed below:
Funds | Strategies |
Moderate Strategy Fund | Return enhancement and hedging |
Balanced Strategy Fund | Return enhancement and hedging |
Growth Strategy Fund | Return enhancement and hedging |
Equity Growth Strategy Fund | Return enhancement and hedging |
The Target Portfolio Funds’ options contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic
requirements. The following table illustrates the quarterly activity of options contracts measured by notional in USD.
Notes to Financial Statements 201
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Notional of Options Contracts Opened or | |||||||
Closed | |||||||
Funds | January 31, 2017 | April 30, 2017 | |||||
Moderate Strategy Fund | Opened | $ | 105,645,040 | $ | 50,047,432 | ||
Closed | 55,794,390 | 49,850,649 | |||||
Balanced Strategy Fund | Opened | 418,862,721 | 426,723,715 | ||||
Closed | 494,171,312 | 418,862,721 | |||||
Growth Strategy Fund | Opened | 103,901,010 | 105,412,664 | ||||
Closed | 421,576,051 | 103,901,010 | |||||
Equity Growth Strategy Fund | Opened | 42,212,451 | 43,866,099 | ||||
Closed | 74,248,815 | 42,212,451 |
Futures Contracts
The Target Portfolio Funds may invest in futures contracts. The face or contract value of these instruments reflect the extent of the
Funds’ exposure to off balance sheet risk. The primary risks associated with the use of futures contracts are an imperfect correlation
between the change in fair value of the securities held by the Funds and the prices of futures contracts, and the possibility of an
illiquid market. Upon entering into a futures contract, the Funds are required to deposit with a broker an amount, termed the initial
margin, which typically represents 5% to 10% of the purchase price indicated in the futures contract. Payments to and from the
broker, known as variation margin, are typically required to be made on a daily basis as the price of the futures contract fluctuates.
Changes in initial settlement value are accounted for as unrealized appreciation (depreciation) until the contracts are terminated,
at which time realized gains and losses are recognized.
For the period ended April 30, 2017, the following Funds entered into futures contracts primarily for the strategies listed below:
Funds | Strategies |
Conservative Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
Moderate Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
Balanced Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
Growth Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
Equity Growth Strategy Fund | Return enhancement, hedging, and exposing cash to markets |
The Target Portfolio Funds' futures contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic
requirements. The following table illustrates the quarterly activity of futures contracts measured by notional in USD.
Notional of Futures Contracts Opened or | |||||||
Closed | |||||||
Funds | January 31, 2017 | April 30, 2017 | |||||
Conservative Strategy Fund | Opened | $ | 31,008,928 | $ | 35,575,944 | ||
Closed | 23,374,542 | 34,494,603 | |||||
Moderate Strategy Fund | Opened | 151,704,726 | 164,433,791 | ||||
Closed | 137,731,096 | 160,695,693 | |||||
Balanced Strategy Fund | Opened | 733,291,971 | 792,794,086 | ||||
Closed | 624,172,149 | 778,412,388 | |||||
Growth Strategy Fund | Opened | 599,696,479 | 578,675,357 | ||||
Closed | 528,925,562 | 583,706,218 | |||||
Equity Growth Strategy Fund | Opened | 262,590,732 | 232,396,252 | ||||
Closed | 225,807,624 | 246,370,950 |
Swap Agreements
The Target Portfolio Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether
they are hedging their assets or their liabilities, and will usually enter into swaps on a net basis (i.e., the two payment streams
are netted out, with the Funds receiving or paying only the net amount of the two payments). When a Fund engages in a swap, it
202 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
exchanges its obligations to pay or rights to receive payments for the obligations to pay or rights to receive payments of another party
(i.e., an exchange of floating rate payments for fixed rate payments).
The Target Portfolio Funds may enter into several different types of swap agreements including credit default, interest rate, total
return and currency swaps. Credit default swaps are a counterparty agreement which allows the transfer of third party credit risk
(the possibility that an issuer will default on its obligation by failing to pay principal or interest in a timely manner) from one party
to another. The lender faces the credit risk from a third party and the counterparty in the swap agrees to insure this risk in exchange
for regular periodic payments. Interest rate swaps are a counterparty agreement, can be customized to meet each party’s needs,
and involve the exchange of a fixed or variable payment per period for a payment that is not fixed. Equity swaps are a counterparty
agreement where two parties exchange two sets of cash flows on predetermined dates for an agreed upon amount of time. The cash
flows will typically be an equity index value swapped with a floating rate such as LIBOR plus or minus a pre-defined spread. Index
swap agreements are a counterparty agreement intended to expose cash to markets or to effect investment transactions consistent
with those Funds’ investment objectives and strategies. Currency swaps are a counterparty agreement where two parties exchange
specified amounts of different currencies which are followed by each paying the other a series of interest payments that are based
on the principal cash flow. At maturity the principal amounts are returned.
The Funds generally expect to enter into these transactions primarily to preserve a return or spread on a particular investment or
portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date, or for
return enhancement. Under most swap agreements entered into by a Fund, the parties' obligations are determined on a "net basis".
The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a
daily basis and an amount of cash or liquid assets having an aggregate NAV at least equal to the accrued excess will be segregated.
To the extent that the Funds enter into swaps on other than a net basis, the amount maintained in a segregated account will be the
full amount of the Funds’ obligations, if any, with respect to such swaps, accrued on a daily basis. If there is a default by the other
party to such a transaction, the Funds will have contractual remedies pursuant to the agreement related to the transaction.
A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes
bankrupt.
Credit Default Swaps
The Target Portfolio Funds may enter into credit default swaps. A credit default swap can refer to corporate issues, government
issues, asset-backed securities or an index of assets, each known as the reference entity or underlying asset. Funds may act as
either the buyer or the seller of a credit default swap involving one party making a stream of payments to another party in exchange
for the right to receive a specified return in the event of a default or other credit event. Depending upon the terms of the contract,
the credit default swap may be closed via physical settlement. However, due to the possible or potential instability in the market,
there is a risk that the Funds may be unable to deliver the underlying debt security to the other party to the agreement. Additionally,
the Funds may not receive the expected amount under the swap agreement if the other party to the agreement defaults or becomes
bankrupt. In an unhedged credit default swap, Funds enter into a credit default swap without owning the underlying asset or debt
issued by the reference entity. Credit default swaps allow Funds to acquire or reduce credit exposure to a particular issuer, asset
or basket of instruments.
As the seller of protection in a credit default swap, a Fund would be required to pay the par or other agreed-upon value (or otherwise
perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified
credit event) and the counterparty would be required to surrender the reference debt obligation. In return, the Fund would receive
from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no
credit event occurs, the Fund would keep the stream of payments and would have no payment obligations. As a seller of protection,
the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, that Fund would be subject to
investment exposure on the notional amount of the swap.
The Target Portfolio Funds may also purchase protection via credit default swap contracts in order to offset the risk of default of
debt securities held in their portfolios or to take a short position in a debt security, in which case the Fund would function as the
counterparty referenced in the preceding paragraph.
If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of
the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of
protection’s right to choose the deliverable obligation with the lowest value following a credit event). The Target Portfolio Funds may
use credit default swaps to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where Funds own or
Notes to Financial Statements 203
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
have exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by
the credit default swap’s spread) of a particular issuer’s default.
Deliverable obligations for credit default swaps on asset-backed securities in most instances are limited to the specific referenced
obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown
or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These
reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap
agreement generally will be adjusted by corresponding amounts. The Target Portfolio Funds may use credit default swaps on asset-
backed securities to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation
or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default (or another
defined credit event).
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for
the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of
the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be
representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a
poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the
indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging
markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized
terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and
if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes
periodically, usually every six months, and, for most indices, each name has an equal weight in the index. Traders may use credit
default swaps on indices to speculate on changes in credit quality.
Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on
corporate issues as of period-end are disclosed in the Schedules of Investments and generally serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit
derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and
may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-
backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of
the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk
of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future
payments (undiscounted) that Funds as a seller of protection could be required to make under a credit default swap agreement
equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of April 30,
2017, for which a Fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would be
partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for
the same referenced entity or entities.
Credit default swaps could result in losses if the Funds do not correctly evaluate the creditworthiness of the company or companies
on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Funds had invested
in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject
to illiquidity and counterparty risk. A Fund will generally incur a greater degree of risk when it sells a credit default swap than
when it purchases a credit default swap. As a buyer of a credit default swap, a Fund may lose its investment and recover nothing
should a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event
were to occur, the value of any deliverable obligation received by a Fund, coupled with the upfront or periodic payments previously
received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
If the creditworthiness of a Fund’s swap counterparty declines, the risk that the counterparty may not perform could increase,
potentially resulting in a loss to the Fund. To limit the counterparty risk involved in swap agreements, the Funds will only enter
into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that
the Funds will be able to do so, the Funds may be able to reduce or eliminate their exposure under a swap agreement either by
assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party.
204 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
The Funds may have limited ability to eliminate their exposure under a credit default swap if the credit quality of the reference
entity or underlying asset has declined.
For the period ended April 30, 2017, the Funds entered into credit default swaps primarily for the strategies listed below:
Funds | Strategies |
Moderate Strategy Fund | Return enhancement, hedging, and exposing cash markets |
Balanced Strategy Fund | Return enhancement, hedging, and exposing cash markets |
Growth Strategy Fund | Return enhancement, hedging, and exposing cash markets |
Equity Growth Strategy Fund | Return enhancement, hedging, and exposing cash markets |
The Target Portfolio Funds’ period end credit default swap contract notional amounts outstanding fluctuate throughout the fiscal
year as required to meet strategic requirements. The following table illustrates the quarterly activity of credit default swap contracts.
For the purpose of this disclosure, the volume is measured by notional amounts outstanding at each quarter end.
Credit Default Swap Notional Amounts | ||||||
Outstanding | ||||||
Quarter Ended | January 31, 2017 | April 30, 2017 | ||||
Moderate Strategy Fund | $ | 39,300,000 | $ | 39,300,000 | ||
Balanced Strategy Fund | 217,299,965 | 217,300,000 | ||||
Growth Strategy Fund | 73,300,021 | 73,300,000 | ||||
Equity Growth Strategy Fund | 1,000,000 | 1,000,000 |
Total Return Swaps
The Target Portfolio Funds may enter into index swap agreements to expose cash to markets or to effect investment transactions.
Index swap agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks
to more than one year. In a standard index swap transaction, the two parties agree to exchange the returns (or differentials in rates
of return) earned or realized on particular investments or instruments.
The returns to be exchanged between the parties are calculated with respect to a “notional amount” (i.e., a specified dollar amount
that is hypothetically invested in a “basket” of securities representing a particular index).
For the period ended April 30, 2017, the Funds entered into total return swaps primarily for the strategies listed below:
Funds | Strategies |
Moderate Strategy Fund | Return enhancement and hedging |
Balanced Strategy Fund | Return enhancement and hedging |
Growth Strategy Fund | Return enhancement and hedging |
Equity Growth Strategy Fund | Return enhancement and hedging |
The Target Portfolio Funds’ period end total return swap contract notional amounts outstanding fluctuate throughout the fiscal year
as required to meet strategic requirements. The following table illustrates the quarterly volume of total return swap contracts. For
the purpose of this disclosure, the volume is measured by notional amounts outstanding at each quarter end.
Total Return Swap Notional Amounts | |||||
Outstanding | |||||
Quarter Ended | January 31, 2017 | April 30, 2017 | |||
Moderate Strategy Fund | $ | 6,278,795 | $ | — | |
Balanced Strategy Fund | 12,691,735 | — | |||
Growth Strategy Fund | 11,547,867 | — | |||
Equity Growth Strategy Fund | 5,479,128 | — |
Master Agreements
Certain Target Portfolio Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA
Master Agreements”) with counterparties that govern transactions in OTC derivative and foreign exchange contracts entered into
by the Funds and those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations,
agreements, collateral and events of default or termination. Events of termination and default include conditions that may entitle
Notes to Financial Statements 205
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
either party to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master
Agreement. Any election to terminate early could be material to the financial statements. Since different types of forward and OTC
financial derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular
counterparty organization, each type of transaction may be covered by a different ISDA Master Agreement, resulting in the need
for multiple agreements with a single counterparty. As the ISDA Master Agreements are specific to unique operations of different
asset types, they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions
governed under a single agreement with a counterparty.
Master Repurchase Agreements (“Master Repo Agreements”) govern transactions between a Fund and select counterparties.
The Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and
maintenance of collateral for repurchase and reverse repurchase agreements.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors
surrounding the settlement of certain forward settling transactions, such as delayed delivery by and between a Fund and select
counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment
and transfer, events of default, termination, and maintenance of collateral.
Disclosure about Offsetting Assets and Liabilities
Balance sheet disclosure is based on various netting agreements between brokers and counterparties, such as ISDA Master
Agreements, Master Repo Agreements and Master Forward Agreements. Certain Target Portfolio Funds utilized multiple
counterparties. The quantitative disclosure begins with disaggregation of counterparties by legal entity and the roll up of the data
to reflect a single counterparty in the table within the Funds’ financial statements. Net exposure represents the net receivable
(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted
across transactions governed under the same Master Agreement with the same legal entity.
Class Allocation
Each of the Funds presented herein may offer certain of the following classes of shares: Class A, Class A1, Class A2, Class A3,
Class C, Class C1, Class E, Class R1, Class R4, Class R5, Class S and Class T. All share classes have identical voting, dividend,
liquidation and other rights, preferences, powers, restrictions, limitations, qualifications and the same terms and conditions. The
separate classes of shares differ principally in the applicable sales charges, distribution fees and shareholder servicing fees.
Shareholders of each class bear certain expenses that pertain to that particular class. Realized and unrealized gains (losses),
investment income, and expenses with the exception of class level expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general
indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
Market, Credit and Counterparty Risk
In the normal course of business, the Funds and Underlying Funds trade financial instruments and enter into financial transactions
where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform
(credit risk). Similar to credit risk, the Funds and Underlying Funds may also be exposed to counterparty risk or risk that an
institution or other entity with which the Funds or Underlying Funds have unsettled or open transactions will default. The potential
loss could exceed the value of the relevant assets recorded in the Funds' and Underlying Funds' financial statements (the “Assets”).
The Assets consist principally of cash due from counterparties and investments. The extent of the Funds' and Underlying Funds'
exposure to market, credit and counterparty risks with respect to the Assets approximates their carrying value as recorded in the
Funds' and Underlying Funds' Statements of Assets and Liabilities.
Global economies and financial markets are becoming increasingly interconnected and political and economic conditions (including
recent instability and volatility) and events (including natural disasters) in one country, region or financial market may adversely
impact issuers in a different country, region or financial market. As a result, issuers of securities held by a Fund or an Underlying
Fund may experience significant declines in the value of their assets and even cease operations. Such conditions and/or events may
not have the same impact on all types of securities and may expose a Fund or an Underlying Fund to greater market and liquidity
206 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
risk and potential difficulty in valuing portfolio instruments held. This could cause a Fund or an Underlying Fund to underperform
other types of investments.
3. Investment Transactions
Securities
During the period ended April 30, 2017, purchases and sales of investment securities (excluding short-term investments, options
and futures) were as follows:
Purchases | Sales | |||||
Conservative Strategy Fund | $ | 48,082,498 | $ | 85,112,358 | ||
Moderate Strategy Fund | 35,373,329 | 88,670,422 | ||||
Balanced Strategy Fund | 263,327,207 | 511,714,458 | ||||
Growth Strategy Fund | 181,273,261 | 332,520,228 | ||||
Equity Growth Strategy Fund | 57,415,961 | 129,865,161 | ||||
2020 Strategy Fund | 9,640,343 | 17,887,028 | ||||
2025 Strategy Fund | 4,684,251 | 5,440,397 | ||||
2030 Strategy Fund | 13,694,493 | 13,935,968 | ||||
2035 Strategy Fund | 4,016,000 | 5,487,206 | ||||
2040 Strategy Fund | 5,673,627 | 7,439,263 | ||||
2045 Strategy Fund | 2,252,475 | 3,817,118 | ||||
2050 Strategy Fund | 2,533,532 | 4,017,598 | ||||
2055 Strategy Fund | 1,464,538 | 2,127,994 | ||||
In Retirement Fund | 3,815,493 | 5,609,579 |
4. Related Party Transactions, Fees and Expenses
Adviser, Administrator, Transfer and Dividend Disbursing Agent
RIM provides or oversees the provision of all investment advisory and portfolio management services for the Funds, including
developing the investment program for each Fund and managing each Fund's overall exposures. RIFUS is the Funds' administrator
and transfer agent. RIFUS, in its capacity as the Funds' administrator, provides or oversees the provision of all administrative
services for the Funds. RIFUS, in its capacity as the Funds' transfer agent and dividend disbursing agent, is responsible for
providing transfer agency and dividend disbursing services to the Funds. RIFUS is a wholly-owned subsidiary of RIM. RIM is an
indirect, wholly-owned subsidiary of Russell Investments Group, Ltd., a Cayman company.
The Target Portfolio Funds are permitted to invest their cash (i.e., cash awaiting investment or cash held to meet redemption
requests or to pay expenses) in the U.S. Cash Management Fund, an unregistered fund advised by RIM. As of April 30, 2017, the
Target Portfolio Funds had invested $34,673,000 in the U.S. Cash Management Fund.
An affiliated company is a company in which a Fund has ownership of at least 5% of the voting securities or which the Fund
controls, is controlled by or is under common control with. See each Fund’s Related Party Transactions, Fees and Expenses for
disclosure of transactions with affiliated companies.
Target Portfolio Funds
With respect to the Target Portfolio Funds, the advisory fee of 0.20% and administrative fee of up to 0.0425% are based upon the
average daily net assets of the Funds and are payable monthly. The following shows the total amount of each of these fees paid by
the Funds for the period ended April 30, 2017:
Advisory | Administrative | |||||
Conservative Strategy Fund | $ | 334,818 | $ | 71,149 | ||
Moderate Strategy Fund | 547,174 | 116,274 | ||||
Balanced Strategy Fund | 2,355,682 | 500,583 | ||||
Growth Strategy Fund | 1,564,005 | 332,351 | ||||
Equity Growth Strategy Fund | 645,505 | 137,170 |
Notes to Financial Statements 207
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
RIFUS is paid a fee based upon the average daily net assets of the Funds for transfer agency and dividend disbursing services.
RIFUS retains a portion of this fee for its services provided to the Funds and pays the balance to unaffiliated agents who assist in
providing these services. The following shows the total amount of this fee paid by the Funds for the period ended April 30, 2017:
Amount | |||
Conservative Strategy Fund | $ | 334,818 | |
Moderate Strategy Fund | 547,174 | ||
Balanced Strategy Fund | 2,355,682 | ||
Growth Strategy Fund | 1,564,005 | ||
Equity Growth Strategy Fund | 645,505 |
Target Date Funds
For the 2020 Strategy, 2025 Strategy, 2030 Strategy, 2035 Strategy, 2040 Strategy, 2045 Strategy, 2050 Strategy, 2055 Strategy
and In Retirement Funds, RIM agreed to assume the responsibility of payment for all operating expenses other than Rule 12b-1
distribution fees, shareholder services fees, extraordinary expenses or the expenses of other investment companies in which the
Funds invest which are borne directly by the Funds.
Waivers and Reimbursements
Target Portfolio Funds
Until February 28, 2018, RIM has contractually agreed to waive up to the full amount of its advisory fee and then reimburse
each Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses exceed 0.12% of the average daily
net assets of the Fund on an annual basis. Direct Fund-level operating expenses do not include transfer agency fees, Rule 12b-
1 distribution fees, shareholder servicing fees, extraordinary expenses or the expenses of other investment companies in which
the Funds invest which are borne indirectly by the Funds. These waivers and reimbursements may not be terminated during the
relevant period except with Board approval.
For the Conservative Strategy Fund, RIFUS has contractually agreed, until February 28, 2018, to waive 0.15% of its transfer agency
fees for Class R1, R4 and R5 Shares and 0.02% of its transfer agency fees for Class A, C, E and S Shares. These waivers may not
be terminated during the relevant period except with Board approval.
For the Moderate Strategy Fund, RIFUS has contractually agreed, until February 28, 2018, to waive 0.08% of its transfer agency
fees for Class A, C, R1, R4 and R5 Shares. This waiver may not be terminated during the relevant period except with Board
approval.
For the Balanced Strategy Fund, RIFUS has contractually agreed, until February 28, 2018, to waive 0.06% of its transfer agency
fees for Class R1, R4 and R5 Shares and 0.10% of its transfer agency fees for Class A and C Shares. These waivers may not be
terminated during the relevant period except with Board approval.
For the Growth Strategy Fund, RIFUS has contractually agreed, until February 28, 2018, to waive 0.05% of its transfer agency fees
for Class R1, R4 and R5 Shares. This waiver may not be terminated during the relevant period except with Board approval.
For the Equity Growth Strategy Fund, RIFUS has contractually agreed, until February 28, 2018, to waive 0.08% of its transfer
agency fees for Class R1, R4 and R5 Shares. This waiver may not be terminated during the relevant period except with Board
approval.
As of April 30, 2017, RIM and RIFUS waived the following expenses:
RIM Waiver | RIFUS Waiver | Total | |||||||
Conservative Strategy Fund | $ | 340,668 | $ | 63,833 | $ | 404,501 | |||
Moderate Strategy Fund | 502,308 | 176,765 | 679,073 | ||||||
Balanced Strategy Fund | 1,804,646 | 1,077,902 | 2,882,548 | ||||||
Growth Strategy Fund | 1,241,341 | 50,386 | 1,291,727 | ||||||
Equity Growth Strategy Fund | 576,601 | 29,752 | 606,353 |
208 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
Distributor and Shareholder Servicing
Russell Investments Financial Services, LLC (the “Distributor”), a wholly owned subsidiary of RIM, is the distributor for the
Investment Company, pursuant to a distribution agreement with the Investment Company.
The Investment Company has distribution plans pursuant to Rule 12b-1 (the “Plans”) under the Investment Company Act. Under
the Plans, the Investment Company is authorized to make payments to the Distributor or any selling agents, as defined in the Plans,
for sales support services provided, and related expenses incurred which are primarily intended to result in the sale of the Class A,
Class C and Class R5 Shares subject to the Plans. The 12b-1 distribution payments shall not exceed 0.25% of the average daily net
assets of a Fund’s Class A or Class R5 Shares or 0.75% of the average daily net assets of a Fund’s Class C Shares on an annual basis.
Under the Plan for Class R4 and Class R5 Shares, the Funds may make payments to the Distributor or any servicing agent for any
activities or expenses primarily intended to assist, support or service the servicing agents’ clients who beneficially own Class R4
and Class R5 Shares of the Funds. The shareholder servicing payments shall not exceed 0.25% of the average daily net assets of a
Fund’s Class R4 and Class R5 Shares on an annual basis.
In addition, the Investment Company has adopted a Shareholder Services Plan under which the Funds may make payments to the
Distributor or any servicing agent for any activities or expenses primarily intended to assist, support or service the servicing agents’
clients who beneficially own Class C and Class E Shares of the Funds. The shareholder servicing payments shall not exceed 0.25%
of the average daily net assets of a Fund’s Class C and Class E Shares on an annual basis.
Pursuant to the rules of the Financial Industry Regulatory Authority (“FINRA”), the aggregate initial sales charges, deferred
sales charges and asset-based sales charges on Class A, Class C, Class E, Class R4 and Class R5 Shares of the Funds may not
exceed 7.25%, 6.25%, 6.25%, 6.25% and 6.25%, respectively, of total gross sales, subject to certain exclusions. These limitations
are imposed at the class level on each class of shares of each Fund rather than on a per shareholder basis. Therefore, long-term
shareholders of the Class A, Class C, Class E, Class R4 or Class R5 Shares may pay more than the economic equivalent of the
maximum sales charges permitted by FINRA.
For the period ended April 30, 2017, the Distributor retained the following amounts in sales charges:
Contingent Deferred Sales Charges | Class A Shares | ||
Moderate Strategy Fund | $ | 343 | |
Balanced Strategy Fund | 534 |
For the period ended April 30, 2017, the sales commissions paid to the selling agents for the sale of Class A Shares were as follows:
Aggregate | Class A Front-End | |||||
Front-End | Sales Charges | |||||
Sales Charges | Retained by | |||||
on Class A Shares | Distributor | |||||
Conservative Strategy Fund | $ | 55,968 | $ | 9,907 | ||
Moderate Strategy Fund | 67,701 | 11,201 | ||||
Balanced Strategy Fund | 436,367 | 73,949 | ||||
Growth Strategy Fund | 443,023 | 70,140 | ||||
Equity Growth Strategy Fund | 124,574 | 19,798 | ||||
2030 Strategy Fund | 35 | 5 |
Board of Trustees
The Russell Investments Fund Complex consists of RIC, which has 42 funds and Russell Investment Funds ("RIF"), which has 9
funds. Each of the Trustees is a Trustee of RIC and RIF. The Russell Investments Fund Complex compensates each Trustee who is
not an employee of RIM or its affiliates. The costs of paying Trustee compensation and expenses are allocated to each Fund based
on its net assets relative to other funds in the Russell Investments Fund Complex.
For the period ended April 30, 2017, the regular compensation paid to the Trustees by the Funds was $675,500 .
Notes to Financial Statements 209
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
5. Federal Income Taxes
At April 30, 2017, the following Funds had net tax basis capital loss carryforwards which may be applied against any net realized
taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first. Available capital loss
carryforwards and expiration dates are as follows:
No Expiration | ||||||||||
10/31/2018 | 10/31/2019 | Short Term | Long-Term | Totals | ||||||
Equity Growth Strategy Fund | $ | 71,779,811 | $ | 19,352,964 | $ | — | $ | — | $ | 91,132,775 |
Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses
incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those
future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment
capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being
considered all short-term as under previous law.
6. Record Ownership
As of April 30, 2017, the following table includes shareholders of record with greater than 10% of the total outstanding shares of
each respective Fund:
# of Shareholders | % | |||||
Conservative Strategy Fund | 3 | 60.0 | ||||
Moderate Strategy Fund | 2 | 56.4 | ||||
Balanced Strategy Fund | 3 | 65.5 | ||||
Growth Strategy Fund | 3 | 66.4 | ||||
Equity Growth Strategy Fund | 4 | 68.8 | ||||
2020 Strategy Fund | 4 | 60.8 | ||||
2025 Strategy Fund | 3 | 65.0 | ||||
2030 Strategy Fund | 3 | 59.8 | ||||
2035 Strategy Fund | 2 | 60.7 | ||||
2040 Strategy Fund | 3 | 62.1 | ||||
2045 Strategy Fund | 3 | 63.9 | ||||
2050 Strategy Fund | 3 | 63.4 | ||||
2055 Strategy Fund | 4 | 78.7 | ||||
In Retirement Fund | 3 | 56.4 |
7. Pending Legal Proceedings
The Strategic Bond Fund is one of several defendants in a bankruptcy adversary avoidance claim in a Consolidated Multidistrict
Action styled In Re: Motors Liquidation Company, et al., Debtors, Motors Liquidation Company Avoidance Action Trust, etc., v.
JPMorgan Chase Bank, et al., United States District Bankruptcy Court for the Southern District of New York. The claim relates
to alleged improper payments to the Fund as a participating lender in a term loan provided to General Motors Company due to
the Fund’s security interests not being properly perfected. The Fund has filed answers denying liability and a crossclaim against
the administrative agent for the term loan lenders seeking damages arising from the agent’s failure to properly perfect the security
interests of the lenders.
210 Notes to Financial Statements
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2017 (Unaudited)
8. Subsequent Events
Management has evaluated the events and/or transactions that have occurred through the date the financial statements were issued
and noted no items requiring adjustments of the financial statements or additional disclosure except the following:
At a meeting held on May 23, 2017, the Board approved liquidation of the Target Date Funds pursuant to a plan of Liquidation and
Dissolution of the Sub-Trusts (the Plan). Shareholders of the Funds may redeem their shares prior to the liquidation date. The Plan
provides for the liquidation of each Fund’s assets on or before October 6, 2017, and a liquidating distribution to be paid to each
Fund’s shareholders of all of the proceeds of the liquidation as promptly as possible after the liquidation date.
Notes to Financial Statements 211
Russell Investment Company
LifePoints® Funds
Shareholder Requests for Additional Information — April 30, 2017 (Unaudited)
A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third
quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii)
at https://russellinvestments.com; and (iii) at the Securities and Exchange Commission’s Office of Investor Education and Advocacy
(formerly, the Public Reference room).
The Board has delegated to RIM, as RIC’s investment adviser, the primary responsibility for monitoring, evaluating and voting proxies
solicited by or with respect to issuers of securities in which assets of the Underlying Funds may be invested. RIM has established a proxy
voting committee and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”).
The Funds maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders
and third parties of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio
Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional
Information (“SAI”). The SAI and information regarding how the Underlying Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30, 2016 are available (i) free of charge, upon request, by calling the Funds at (800) 787-
7354; (ii) at https://russellinvestments.com; and (iii) on the Securities and Exchange Commission’s website at www. sec.gov.
To reduce expenses, we may mail only one copy of the Funds’ prospectuses and each annual and semi-annual report to those addresses
shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your Financial Intermediary.
Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please
contact your Financial Intermediary for further details.
Financial statements of the Underlying Funds can be obtained at no charge by calling the Funds at (800) 787-7354.
212 Shareholder Requests for Additional Information
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers — April 30, 2017
(Unaudited)
The following tables provide information for each officer and Trustee of the Russell Investments Fund Complex. The Russell
Investments Fund Complex consists of Russell Investment Company RIC, which has 42 funds and Russell Investment
Funds (“RIF”), which has 9 funds. Each of the Trustees is a trustee of RIC and RIF. The first table provides information for the
Independent Trustees. The second table provides information for the Trustee Emeritus. The third table provides information for the
officers. Furthermore, each Trustee possesses the following specific attributes: Mr. Alston has business, financial and investment
experience as a senior executive of an international real estate firm and is trained as a lawyer; Ms. Blake has had experience as
a certified public accountant and has had experience as a member of boards of directors/trustees of other investment companies;
Ms. Burgermeister has had experience as a certified public accountant and as a member of boards of directors/trustees of other
investment companies and has been determined by the Board to be an “audit committee financial expert”; Mr. Connealy has had
experience with other investment companies and their investment advisers, first as a partner in the investment management practice
of PricewaterhouseCoopers LLP and, subsequently, as the senior financial executive of two other investment organizations sponsoring
and managing investment companies; Ms. Krysty has had business, financial and investment experience as the founder and senior
executive of a registered investment adviser focusing on high net worth individuals as well as a certified public accountant and a
member of the boards of other corporations and non-profit organizations; Mr. Tennison has had business, financial and investment
experience as a senior executive of a corporation with international activities and was trained as an accountant; and Mr. Thompson
has had experience in business, governance, investment and financial reporting matters as a senior executive of an organization
sponsoring and managing other investment companies, and, subsequently, has served as a board member of other investment companies.
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other |
Age, | With Fund and | of | During the | Portfolios | Directorships |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee |
Time Served | Investments | During the | |||
Fund | Past 5 Years | ||||
Complex | |||||
Overseen | |||||
by Trustee | |||||
INDEPENDENT TRUSTEES | |||||
Thaddas L. Alston, | Trustee since 2006 | Appointed until | Senior Vice President, Larco | 51 | Until October |
Born April 7, 1945 | successor is | Investments, Ltd. (real estate firm) | 2015, Trustee, | ||
1301 Second Avenue, | duly elected and | Russell Exchange | |||
18th Floor, Seattle, WA | qualified | Traded Funds | |||
98101 | Trust |
Disclosure of Information about Fund Trustees and Officers 213
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other | |
Age, | With Fund and | of | During the | Portfolios | Directorships | |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee | |
Time Served | Investments | During the | ||||
Fund | Past 5 Years | |||||
Complex | ||||||
Overseen | ||||||
by Trustee | ||||||
Kristianne Blake, | Trustee since 2000 | Appointed until | • Director and Chairman of the | 51 | • Director, Avista | |
Born January 22, 1954 | Chairman since 2005 | successor is | Audit Committee, Avista Corp | Corp (electric | ||
1301 Second Avenue, | duly elected and | (electric utilities) | utilities) | |||
18th Floor, Seattle, WA | qualified | • Regent, University of | • Until June 30, | |||
98101 | Approved annually | Washington | 2014, Director, | |||
• President, Kristianne Gates | Ecova (total | |||||
Blake, P.S. (accounting services) | energy and | |||||
• Until June 30, 2014, Director, | sustainability | |||||
Ecova (total energy and | management) | |||||
sustainability management) | • Until December | |||||
• Until December 31, 2013, | 31, 2013, | |||||
Trustee and Chairman of | Trustee, | |||||
the Operations Committee, | Principal | |||||
Principal Investors Funds and | Investors Funds | |||||
Principal Variable Contracts | (investment | |||||
Funds (investment company) | company) | |||||
• From April 2004 through | • Until December | |||||
December 2012, Director, Laird | 31, 2013, | |||||
Norton Wealth Management | Trustee Principal | |||||
and Laird Norton Tyee Trust | Variable | |||||
(investment company) | Contracts Funds | |||||
(investment | ||||||
company) | ||||||
• From April | ||||||
2004 through | ||||||
December 2012, | ||||||
Director, Laird | ||||||
Norton Wealth | ||||||
Management and | ||||||
Laird Norton | ||||||
Tyee Trust | ||||||
(investment | ||||||
company) | ||||||
• Until October | ||||||
2015, Trustee, | ||||||
Russell | ||||||
Exchange | ||||||
Traded Funds | ||||||
Trust | ||||||
* | Each Trustee is subject to mandatory retirement at age 75. |
214 Disclosure of Information about Fund Trustees and Officers
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other |
Age, | With Fund and | of | During the | Portfolios | Directorships |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee |
Time Served | Investments | During the | |||
Fund | Past 5 Years | ||||
Complex | |||||
Overseen | |||||
by Trustee | |||||
INDEPENDENT TRUSTEES (continued) | |||||
Cheryl Burgermeister, | Trustee since 2012 | Appointed until | • Retired | 51 | • Trustee and |
Born June 26, 1951 | Chairman of the | successor is | • Trustee and Chairperson of | Chairperson of | |
1301 Second Avenue, | Audit Committee | duly elected | Select Sector SPDR Funds | Select Sector | |
18th Floor, Seattle, WA | since 2017 | and qualified | (investment company) | SPDR Funds | |
98101 | Appointed until | • Until December 31, 2014, | (investment | ||
successor is | Chairperson of Audit | company) | |||
duly elected and | Committee, Select Sector SPDR | • From August | |||
qualified | Funds (investment company) | 2012 through | |||
May 6, 2016, | |||||
Trustee, ALPS | |||||
Series Trust | |||||
(investment | |||||
company) | |||||
• Until December | |||||
31, 2014, | |||||
Chairperson | |||||
of Audit | |||||
Committee, | |||||
Select Sector | |||||
SPDR Funds | |||||
(investment | |||||
company) | |||||
• Until October | |||||
2015, Trustee, | |||||
Russell | |||||
Exchange | |||||
Traded Funds | |||||
Trust | |||||
Daniel P. Connealy, | Trustee since 2003 | Appointed until | • Retired | 51 | Until October |
Born June 6, 1946 | successor is | • June 2004 to June 2014, Senior | 2015, Trustee, | ||
1301 Second Avenue, | duly elected and | Vice President and Chief | Russell Exchange | ||
18th Floor, Seattle, WA | qualified | Financial Officer, Waddell | Traded Funds | ||
98101 | & Reed Financial, Inc. | Trust | |||
(investment company) | |||||
Katherine W. Krysty, | Trustee since 2014 | Appointed until | • Retired | 51 | Until October |
Born December 3, 1951 | successor is | • January 2011 through March | 2015, Trustee, | ||
1301 Second Avenue | duly elected and | 2013, President Emerita, Laird | Russell Exchange | ||
18th Floor, Seattle, WA | qualified | Norton Wealth Management | Traded Funds | ||
98101 | (investment company) | Trust |
Disclosure of Information about Fund Trustees and Officers 215
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Position(s) Held | Term | Principal Occupation(s) | No. of | Other | ||
Name, | With Fund and | of | During the | Portfolios | Directorships | |
Age, | Length of | Office * | Past 5 Years | in Russell | Held by Trustee | |
Address | Time Served | Investments | During the | |||
Fund | Past 5 Years | |||||
Complex | ||||||
Overseen | ||||||
by Trustee | ||||||
INDEPENDENT TRUSTEES (continued) | ||||||
Raymond P. Tennison, | Trustee since 2000 | Appointed until | • Retired | 51 | Until October | |
Jr., Born December 21, | Chairman of | successor is | • From January 2008 to December | 2015, Trustee, | ||
1955 | the Nominating | duly elected and | 2011, Vice Chairman of the | Russell Exchange | ||
1301 Second Avenue | and Governance | qualified | Board, Simpson Investment | Traded Funds | ||
18th Floor, Seattle, WA | Committee since | Appointed until | Company (paper and forest | Trust | ||
98101 | 2007 | successor is | products) | |||
duly elected and | ||||||
qualified | ||||||
Jack R. Thompson, | Trustee since 2005 | Appointed until | • Retired | 51 | • Until October | |
Born March 21, 1949 | Chairman of | successor is | 2015, Trustee, | |||
1301 Second Avenue, | the Investment | duly elected and | Russell | |||
18th Floor, Seattle, WA | Committee since | qualified | Exchange | |||
98101 | 2015 | Appointed until | Traded Funds | |||
successor is | Trust | |||||
duly elected and | ||||||
qualified | ||||||
* | Each Trustee is subject to mandatory retirement at age 75. | |||||
Name, | Position(s) Held | Term | Principal Occupation(s) | No. of | Other | |
Age, | With Fund and | of | During the | Portfolios | Directorships | |
Address | Length of | Office * | Past 5 Years | in Russell | Held by Trustee | |
Time Served | Investments | During the | ||||
Fund | Past 5 Years | |||||
Complex | ||||||
Overseen | ||||||
by Trustee | ||||||
TRUSTEE EMERITUS | ||||||
George F. Russell, Jr., | Trustee Emeritus and | Until resignation | • Director Emeritus, RIM | 51 | None | |
Born July 3, 1932 | Chairman Emeritus | or removal | ||||
1301 Second Avenue, | since 1999 | |||||
18th Floor, Seattle, WA | ||||||
98101 | ||||||
Name, | Positions(s) Held | Term | Principal Occupation(s) | |||
Age, | With Fund and | of | During the | |||
Address | Length of | Office | Past 5 Years | |||
Time Served | ||||||
OFFICERS | ||||||
Cheryl Wichers, | Chief Compliance | Until removed | • Chief Compliance Officer, RIC and RIF | |||
Born December 16, | Officer since 2005 | by Independent | • Chief Compliance Officer, RIFUS | |||
1966 | Trustees | • 2011 to 2016 Chief Compliance Officer, U.S. One, LLC | ||||
1301 Second Avenue | • 2005 to 2011 Chief Compliance Officer, RIM | |||||
18th Floor, Seattle, WA | ||||||
98101 |
216 Disclosure of Information about Fund Trustees and Officers
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30,
2017 (Unaudited)
Name, | Positions(s) Held | Term | Principal Occupation(s) |
Age, | With Fund and | of | During the |
Address | Length of | Office | Past 5 Years |
Time Served | |||
Mark E. Swanson, | President and Chief | Until successor | • Global Head of Fund Services, Russell Investments |
Born November 26, | Executive Officer | is chosen and | • President, CEO, Treasurer, Chief Accounting Officer and CFO, RIC |
1963 | since 2016 | qualified by | and RIF |
1301 Second Avenue | Treasurer, Chief | Trustees | • Director, and President, RIFUS |
18th Floor, Seattle, WA | Accounting Officer | • Director, RIM, Russell Investments Trust Company (“RITC”) and | |
98101 | and Chief Financial | Russell Investments Financial Services, LLC (“RIFIS”) | |
Officer since 1998 | • October 2011 to December 2013, Head of North America Operations | ||
Russell Investments | |||
• May 2009 to October 2011, Global Head of Fund Operations, Russell | |||
Investments | |||
Jeffrey T. Hussey, | Chief Investment | Until removed by | • Global Chief Investment Officer, Russell Investments |
Born May 2, 1969 | Officer since 2013 | Trustees | • Chief Investment Officer, RIC and RIF |
1301 Second Avenue, | • Chairman of the Board and President, RIM | ||
18th Floor, Seattle WA | • Director, RITC, Russell Investments Implementation Services, LLC | ||
98101 | and Russell Investments Delaware, LLC | ||
• Board of Managers, Russell Investments Funds Management, LLC | |||
• 2003 to 2013 Chief Investment Officer, Fixed Income, Russell | |||
Investments | |||
Mary Beth R. Albaneze, | Secretary since 2010 | Until successor | • Associate General Counsel, Russell Investments |
Born April 25, 1969 | is chosen and | • Secretary, RIM, RIFUS and RIFIS | |
1301 Second Avenue, | qualified by | • Secretary and Chief Legal Officer, RIC and RIF | |
18th Floor, Seattle, WA | Trustees | • Assistant Secretary, Russell Investments Insurance Agency, LLC | |
98101 | (“RIIA”)(insurance agency) and U.S. One, LLC |
Disclosure of Information about Fund Trustees and Officers 217
Russell Investment Company
LifePoints® Funds
Adviser and Service Providers — April 30, 2017 (Unaudited)
Independent Trustees | Administrator and Transfer and Dividend Disbursing |
Thaddas L. Alston | Agent |
Kristianne Blake | Russell Investments Fund Services, LLC |
Cheryl Burgermeister | 1301 Second Avenue |
Daniel P. Connealy | Seattle, WA 98101 |
Katherine W. Krysty | |
Raymond P. Tennison, Jr. | Custodian |
Jack R. Thompson | State Street Bank and Trust Company |
1 Heritage Drive | |
Trustee Emeritus | North Quincy, MA 02171 |
George F. Russell, Jr. | Office of Shareholder Inquiries |
Officers | 1301 Second Avenue |
Mark E. Swanson, President, CEO, Treasurer, Chief | Seattle, WA 98101 |
Accounting Officer and CFO | (800) 787-7354 |
Cheryl Wichers, Chief Compliance Officer | |
Jeffrey T. Hussey, Chief Investment Officer | Legal Counsel |
Mary Beth R. Albaneze, Secretary | Dechert LLP |
One International Place, 40th Floor | |
Adviser | 100 Oliver Street |
Russell Investment Management, LLC | Boston, MA 02110 |
1301 Second Avenue | |
Seattle, WA 98101 | Distributor |
Russell Investments Financial Services, LLC. | |
1301 Second Avenue | |
Seattle, WA 98101 | |
Independent Registered Public Accounting Firm | |
PricewaterhouseCoopers LLP | |
1420 5th Avenue, Suite 2800 | |
Seattle, WA 98101 |
This report is prepared from the books and records of the Funds and is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless accompanied or preceded by an effective Prospectus. Nothing herein contained
is to be considered an offer of sale or a solicitation of an offer to buy shares of Russell Investment Company. Such offering is made only
by Prospectus, which includes details as to offering price and other material information.
218 Adviser and Service Providers
-
Item 2. Code of Ethics. [Annual Report Only]
Item 3. Audit Committee Financial Expert. [Annual Report Only]
Item 4. Principal Accountant Fees and Services. [Annual Report Only]
Item 5. Audit Committee of Listed Registrants. [Not Applicable]
Item 6. [Schedules of Investments are included as part of the Report to Stockholders filed
under Item 1 of this form]
Items 7-9. [Not Applicable]
Item 10. Submission of Matters to a Vote of Security Holders
There have been no changes to the procedures by which shareholders may recommend
nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures
(a) Registrant's principal executive officer and principal financial officer have concluded
that Registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under
the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation
of these controls and procedures as of a date within 90 days of the date this report is filed
with the Securities and Exchange Commission.
(b) There were no significant changes in Registrant's internal control over financial
reporting that occurred during the period covered by this report that has materially
affected or is likely to materially affect Registrant's internal control over financial
reporting.
Item 12. Exhibit List
(a) Certification for principal executive officer of Registrant as required by Rule 30a-
2(a) under the Act and certification for principal financial officer of Registrant as
required by Rule 30a-2(a) under the Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Russell Investment Company
By: _/s/ Mark E. Swanson__________________________________________________
Mark E. Swanson
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial
Officer, Russell Investment Company
Date: July 5, 2017