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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)
909 A Street, Tacoma Washington 98402
(Address of principal executive offices) (Zip code)
Greg J. Lyons, Secretary and Chief Legal Officer
Russell Investment Company
909 A Street
Tacoma, Washington 98402
253-439-2406
(Name and address of agent for service)
Registrant’s telephone number, including area code: 253-572-9500
Date of fiscal year end: October 31
Date of reporting period: November 1, 2009 to April 30, 2010
| Item 1. | Reports to Stockholders |
2010 SEMI-ANNUAL REPORT
Russell Funds
APRIL 30, 2010
| | |
FUND | | SHARE CLASS |
| |
| U.S. Equity Funds | | |
| |
| Russell U.S. Core Equity Fund | | A, C, E, I, S, Y |
| |
| Russell U.S. Quantitative Equity Fund | | A, C, E, I, S, Y |
| |
| Russell U.S. Growth Fund | | C, E, I, S |
| |
| Russell U.S. Value Fund | | C, E, I, S |
| |
| Russell U.S. Small & Mid Cap Fund | | A, C, E, I, S, Y |
| |
| International and Global Equity Funds | | |
| |
| Russell International Developed Markets Fund | | A, C, E, I, S, Y |
| |
| Russell Global Equity Fund | | A, C, E, S, Y |
| |
| Russell Emerging Markets Fund | | A, C, E, S, Y |
| |
| Tax-Managed Equity Funds | | |
| |
| Russell Tax-Managed U.S. Large Cap Fund | | C, E, S |
| |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | C, E, S |
| |
| Taxable Fixed Income Funds | | |
| |
| Russell Strategic Bond Fund | | A, C, E, I, S, Y |
| |
| Russell Investment Grade Bond Fund | | C, E, I, S, Y |
| |
| Russell Short Duration Bond Fund | | A, C, E, S, Y |
| |
| Tax Exempt Fixed Income Fund | | |
| |
| Russell Tax Exempt Bond Fund | | C, E, S |
| |
| Specialty Fund | | |
| |
| Russell Real Estate Securities Fund | | A, C, E, S, Y |
| |
| Money Market Fund | | |
| |
| Russell Money Market Fund | | A, S |
Russell Investment Company
Russell Investment Company is a series investment company with 37 different investment portfolios referred to as Funds. These financial statements report on 16 of these Funds.
Russell Investment Company
Russell Funds
Semi-annual Report
April 30, 2010 (Unaudited)
Table of Contents
Russell Investment Company - Russell Funds.
Copyright © Russell Investments 2010. All rights reserved.
Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
Fund objectives, risks, charges and expenses should be carefully considered before investing. 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 Financial Services, Inc. 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 www.russell.com/us/fundperformance.
Russell Investment Company
Russell U.S. Core Equity Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any
transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,152.70 | | $ | 1,019.54 |
Expenses Paid During Period* | | $ | 5.66 | | $ | 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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,148.60 | | $ | 1,015.82 |
Expenses Paid During Period* | | $ | 9.64 | | $ | 9.05 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.81% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,153.50 | | $ | 1,020.13 |
Expenses Paid During Period* | | $ | 5.02 | | $ | 4.71 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.94% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Russell U.S. Core Equity Fund | | 3 |
Russell Investment Company
Russell U.S. Core Equity Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,155.40 | | $ | 1,021.32 |
Expenses Paid During Period* | | $ | 3.74 | | $ | 3.51 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.70% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,154.70 | | $ | 1,020.78 |
Expenses Paid During Period* | | $ | 4.33 | | $ | 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). |
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,155.40 | | $ | 1,021.62 |
Expenses Paid During Period* | | $ | 3.42 | | $ | 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). |
| | |
| 4 | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 95.0% | | | | |
| Consumer Discretionary - 15.1% | | | | |
Amazon.com, Inc. (Æ) | | 224,366 | | 30,752 |
American Eagle Outfitters, Inc. | | 300,000 | | 5,043 |
Apollo Group, Inc. Class A (Æ) | | 46,110 | | 2,647 |
AutoZone, Inc. (Æ) | | 55,400 | | 10,250 |
Avon Products, Inc. | | 362,300 | | 11,713 |
Bed Bath & Beyond, Inc. (Æ) | | 265,397 | | 12,198 |
Best Buy Co., Inc. | | 297,102 | | 13,548 |
CarMax, Inc. (Æ)(Ñ) | | 147,900 | | 3,634 |
Carnival Corp. | | 116,295 | | 4,850 |
CBS Corp. Class B | | 798,259 | | 12,940 |
Comcast Corp.Class A | | 1,907,682 | | 36,704 |
Costco Wholesale Corp. | | 267,000 | | 15,774 |
Darden Restaurants, Inc. | | 332,600 | | 14,884 |
DR Horton, Inc. (Ñ) | | 578,560 | | 8,499 |
eBay, Inc. (Æ) | | 496,230 | | 11,815 |
Estee Lauder Cos., Inc. (The) Class A | | 172,986 | | 11,403 |
Family Dollar Stores, Inc. (Ñ) | | 106,700 | | 4,221 |
Ford Motor Co. (Æ)(Ñ) | | 1,838,741 | | 23,940 |
Gap, Inc. (The) | | 169,000 | | 4,179 |
Hasbro, Inc. | | 208,890 | | 8,013 |
Home Depot, Inc. | | 1,140,609 | | 40,207 |
Hyatt Hotels Corp. (Æ) | | 7,232 | | 298 |
JC Penney Co., Inc. | | 400,035 | | 11,669 |
Johnson Controls, Inc. | | 398,550 | | 13,387 |
Kohl’s Corp. (Æ) | | 348,754 | | 19,178 |
Las Vegas Sands Corp. (Æ)(Ñ) | | 666,700 | | 16,574 |
Lennar Corp. Class A | | 299,500 | | 5,960 |
Liberty Media Corp. - Capital Series A (Æ) | | 154,797 | | 6,853 |
Lowe’s Cos., Inc. | | 1,301,235 | | 35,290 |
Macy’s, Inc. | | 246,000 | | 5,707 |
Magna International, Inc. Class A (Æ) | | 176,580 | | 11,594 |
Mattel, Inc. | | 291,153 | | 6,711 |
McDonald’s Corp. | | 542,600 | | 38,302 |
Nike, Inc. Class B (Ñ) | | 528,062 | | 40,085 |
NVR, Inc. (Æ) | | 19,360 | | 13,901 |
priceline.com, Inc. (Æ) | | 53,643 | | 14,057 |
Pulte Group, Inc. (Æ)(Ñ) | | 387,411 | | 5,071 |
Royal Caribbean Cruises, Ltd. (Æ) | | 185,000 | | 6,630 |
Stanley Black & Decker, Inc. | | 142,140 | | 8,834 |
Starbucks Corp. | | 597,445 | | 15,522 |
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö) | | 99,600 | | 5,429 |
Target Corp. | | 199,300 | | 11,334 |
Tiffany & Co. (Ñ) | | 176,100 | | 8,537 |
TJX Cos., Inc. | | 579,312 | | 26,845 |
VF Corp. | | 119,900 | | 10,362 |
Viacom, Inc. Class B (Æ) | | 599,150 | | 21,168 |
Wal-Mart Stores, Inc. | | 779,804 | | 41,837 |
Walt Disney Co. (The) | | 859,870 | | 31,678 |
Yum! Brands, Inc. | | 257,100 | | 10,906 |
| | | | |
| | | | 730,933 |
| | | | |
| | |
| Consumer Staples - 6.4% | | | | |
Coca-Cola Co. (The) | | 786,500 | | 42,038 |
Colgate-Palmolive Co. | | 300,412 | | 25,265 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Diageo PLC - ADR | | 105,070 | | 7,159 |
General Mills, Inc. | | 89,980 | | 6,405 |
Hansen Natural Corp. (Æ)(Ñ) | | 153,552 | | 6,769 |
Kellogg Co. | | 378,131 | | 20,775 |
Molson Coors Brewing Co. Class B | | 172,931 | | 7,671 |
Nestle SA - ADR (Æ) | | 158,290 | | 7,740 |
PepsiCo, Inc. | | 1,370,101 | | 89,358 |
Philip Morris International, Inc. | | 470,890 | | 23,111 |
Procter & Gamble Co. (The) | | 618,300 | | 38,434 |
Safeway, Inc. | | 160,000 | | 3,776 |
Smithfield Foods, Inc. (Æ)(Ñ) | | 26,705 | | 500 |
Walgreen Co. | | 509,128 | | 17,896 |
Whole Foods Market, Inc. (Æ)(Ñ) | | 375,770 | | 14,663 |
| | | | |
| | | | 311,560 |
| | | | |
| | |
| Energy - 10.2% | | | | |
Anadarko Petroleum Corp. | | 150,100 | | 9,330 |
Apache Corp. | | 225,450 | | 22,942 |
Arch Coal, Inc. | | 914,640 | | 24,695 |
Cameron International Corp. (Æ) | | 272,800 | | 10,765 |
Chesapeake Energy Corp. (Ñ) | | 789,670 | | 18,794 |
Chevron Corp. | | 875,612 | | 71,310 |
ConocoPhillips | | 1,093,071 | | 64,699 |
Consol Energy, Inc. | | 250,460 | | 11,191 |
EOG Resources, Inc. | | 69,700 | | 7,815 |
EQT Corp. | | 445,791 | | 19,387 |
Exxon Mobil Corp. | | 271,660 | | 18,432 |
Halliburton Co. | | 474,476 | | 14,543 |
Hess Corp. | | 338,350 | | 21,502 |
Marathon Oil Corp. | | 765,300 | | 24,604 |
Massey Energy Co. (Ñ) | | 46,769 | | 1,713 |
National Oilwell Varco, Inc. | | 141,200 | | 6,217 |
Occidental Petroleum Corp. | | 897,142 | | 79,541 |
Patterson-UTI Energy, Inc. | | 324,000 | | 4,954 |
Pioneer Natural Resources Co. | | 85,339 | | 5,473 |
Schlumberger, Ltd. | | 464,770 | | 33,194 |
Southwestern Energy Co. (Æ) | | 110,400 | | 4,381 |
Total SA - ADR | | 132,540 | | 7,207 |
Transocean, Ltd. (Æ) | | 92,400 | | 6,694 |
Valero Energy Corp. | | 237,898 | | 4,946 |
| | | | |
| | | | 494,329 |
| | | | |
| Financial Services - 16.7% | | | | |
Aflac, Inc. | | 323,170 | | 16,469 |
Allstate Corp. (The) | | 447,110 | | 14,607 |
American Express Co. | | 395,513 | | 18,241 |
Ameriprise Financial, Inc. | | 180,434 | | 8,365 |
Annaly Capital Management, Inc. (ö) | | 410,000 | | 6,950 |
AON Corp. | | 431,810 | | 18,335 |
Aspen Insurance Holdings, Ltd. | | 102,000 | | 2,752 |
Assured Guaranty, Ltd. | | 411,519 | | 8,868 |
Bank of America Corp. | | 3,943,172 | | 70,307 |
Bank of New York Mellon Corp. (The) | | 710,662 | | 22,123 |
BB&T Corp. | | 445,950 | | 14,823 |
Brown & Brown, Inc. | | 206,985 | | 4,169 |
Capital One Financial Corp. | | 270,148 | | 11,727 |
Charles Schwab Corp. (The) | | 897,975 | | 17,322 |
Chubb Corp. | | 125,160 | | 6,617 |
| | |
| Russell U.S. Core Equity Fund | | 5 |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Citigroup, Inc. (Æ) | | 3,837,125 | | 16,768 |
Fidelity National Financial, Inc. Class A | | 95,440 | | 1,449 |
Fifth Third Bancorp | | 474,400 | | 7,073 |
Genworth Financial, Inc. Class A (Æ) | | 216,595 | | 3,578 |
Goldman Sachs Group, Inc. (The) | | 232,956 | | 33,825 |
Hartford Financial Services Group, Inc. | | 212,000 | | 6,057 |
iShares Russell 1000 Value Index Fund (Ñ) | | 76,208 | | 4,775 |
JPMorgan Chase & Co. | | 2,415,623 | | 102,857 |
Lincoln National Corp. | | 360,500 | | 11,028 |
Mastercard, Inc. Class A | | 104,537 | | 25,929 |
MetLife, Inc. | | 926,043 | | 42,209 |
MFA Financial, Inc. (ö)(Ñ) | | 91,780 | | 653 |
Moody’s Corp. (Ñ) | | 236,200 | | 5,839 |
Morgan Stanley | | 129,400 | | 3,910 |
NYSE Euronext | | 215,500 | | 7,032 |
PartnerRe, Ltd. - ADR | | 47,831 | | 3,711 |
PNC Financial Services Group, Inc. | | 411,225 | | 27,638 |
Prudential Financial, Inc. | | 370,070 | | 23,522 |
Redwood Trust, Inc. (ö) | | 277,715 | | 4,632 |
RenaissanceRe Holdings, Ltd. | | 61,725 | | 3,454 |
State Street Corp. | | 327,900 | | 14,264 |
SunTrust Banks, Inc. | | 418,800 | | 12,396 |
Travelers Cos., Inc. (The) | | 325,308 | | 16,506 |
Unum Group | | 123,000 | | 3,010 |
US Bancorp | | 773,800 | | 20,715 |
Verisk Analytics, Inc. (Æ) | | 3,937 | | 110 |
Visa, Inc. | | 366,712 | | 33,088 |
Wells Fargo & Co. | | 3,938,649 | | 130,409 |
XL Capital, Ltd. Class A | | 229,000 | | 4,076 |
| | | | |
| | | | 812,188 |
| | | | |
| | |
| Health Care - 11.0% | | | | |
Abbott Laboratories | | 957,694 | | 48,996 |
Allergan, Inc. | | 260,400 | | 16,585 |
Amgen, Inc. (Æ) | | 698,339 | | 40,057 |
Beckman Coulter, Inc. | | 21,000 | | 1,310 |
Becton Dickinson and Co. | | 58,200 | | 4,445 |
Bristol-Myers Squibb Co. | | 238,000 | | 6,019 |
Brookdale Senior Living, Inc. (Æ)(Ñ) | | 257,695 | | 5,540 |
Celgene Corp. (Æ) | | 233,300 | | 14,453 |
Cerner Corp. (Æ)(Ñ) | | 71,600 | | 6,080 |
Community Health Systems, Inc. (Æ) | | 142,000 | | 5,802 |
Covance, Inc. (Æ)(Ñ) | | 135,500 | | 7,742 |
Covidien PLC | | 398,350 | | 19,117 |
Express Scripts, Inc. Class A (Æ) | | 97,900 | | 9,803 |
Gilead Sciences, Inc. (Æ) | | 377,639 | | 14,981 |
Health Net, Inc. (Æ) | | 226,000 | | 4,977 |
Hospira, Inc. (Æ) | | 173,400 | | 9,327 |
Intuitive Surgical, Inc. (Æ) | | 43,348 | | 15,630 |
Johnson & Johnson | | 633,408 | | 40,728 |
Life Technologies Corp. (Æ) | | 92,600 | | 5,066 |
Lincare Holdings, Inc. (Æ)(Ñ) | | 80,600 | | 3,763 |
Medtronic, Inc. | | 555,731 | | 24,280 |
Merck & Co., Inc. | | 1,994,660 | | 69,893 |
Mylan, Inc. (Æ)(Ñ) | | 396,610 | | 8,737 |
Pfizer, Inc. | | 3,905,457 | | 65,299 |
Sanofi-Aventis SA - ADR | | 582,050 | | 19,854 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
St. Jude Medical, Inc. (Æ) | | 148,300 | | 6,054 |
Stryker Corp. | | 187,500 | | 10,770 |
Talecris Biotherapeutics Holdings Corp. (Æ) | | 175,600 | | 3,292 |
Teva Pharmaceutical Industries, Ltd. - ADR | | 211,700 | | 12,433 |
Thermo Fisher Scientific, Inc. (Æ) | | 253,670 | | 14,023 |
UnitedHealth Group, Inc. | | 139,000 | | 4,213 |
Zimmer Holdings, Inc. (Æ) | | 215,900 | | 13,150 |
| | | | |
| | | | 532,419 |
| | | | |
| Materials and Processing - 5.5% |
Agnico-Eagle Mines, Ltd. (Þ) | | 32,000 | | 2,021 |
Air Products & Chemicals, Inc. | | 509,736 | | 39,138 |
Airgas, Inc. | | 152,487 | | 9,675 |
Alcoa, Inc. | | 374,000 | | 5,027 |
Allegheny Technologies, Inc. (Ñ) | | 106,100 | | 5,673 |
Ball Corp. | | 233,574 | | 12,428 |
Dow Chemical Co. (The) | | 530,500 | | 16,355 |
Ecolab, Inc. | | 77,400 | | 3,780 |
EI du Pont de Nemours & Co. | | 121,000 | | 4,821 |
Freeport-McMoRan Copper & Gold, Inc. (Ñ) | | 216,552 | | 16,356 |
Masco Corp. | | 661,950 | | 10,743 |
Monsanto Co. | | 37,200 | | 2,346 |
Mosaic Co. (The) | | 114,096 | | 5,835 |
Newmont Mining Corp. | | 1,102,999 | | 61,856 |
Nucor Corp. | | 176,800 | | 8,013 |
Owens-Illinois, Inc. (Æ) | | 304,500 | | 10,792 |
Potash Corp. of Saskatchewan, Inc. | | 55,800 | | 6,166 |
PPG Industries, Inc. | | 124,590 | | 8,767 |
Praxair, Inc. | | 226,393 | | 18,965 |
Sherwin-Williams Co. (The) | | 37,210 | | 2,905 |
Teck Resources, Ltd. Class B | | 244,900 | | 9,605 |
United States Steel Corp. (Ñ) | | 72,800 | | 3,979 |
| | | | |
| | | | 265,246 |
| | | | |
|
| Producer Durables - 9.8% |
3M Co. | | 474,814 | | 42,102 |
Accenture PLC Class A | | 465,100 | | 20,297 |
Agilent Technologies, Inc. (Æ) | | 117,000 | | 4,242 |
Avery Dennison Corp. | | 56,000 | | 2,186 |
Boeing Co. (The) | | 275,285 | | 19,939 |
Caterpillar, Inc. | | 757,048 | | 51,547 |
Corrections Corp. of America (Æ) | | 220,248 | | 4,564 |
CSX Corp. | | 263,900 | | 14,792 |
Cummins, Inc. | | 238,150 | | 17,202 |
Danaher Corp. | | 153,200 | | 12,912 |
Deere & Co. | | 136,508 | | 8,166 |
Delta Air Lines, Inc. (Æ) | | 731,300 | | 8,834 |
Dover Corp. | | 100,830 | | 5,265 |
Eaton Corp. | | 62,980 | | 4,860 |
Emerson Electric Co. | | 274,787 | | 14,352 |
FedEx Corp. | | 100,500 | | 9,046 |
Fluor Corp. | | 216,000 | | 11,413 |
General Dynamics Corp. | | 125,530 | | 9,585 |
General Electric Co. | | 920,600 | | 17,363 |
Goodrich Corp. (Ñ) | | 160,900 | | 11,936 |
Honeywell International, Inc. | | 1,014,874 | | 48,176 |
| | |
| 6 | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Ingersoll-Rand PLC | | 116,000 | | 4,290 |
Joy Global, Inc. | | 167,600 | | 9,521 |
Lockheed Martin Corp. | | 272,620 | | 23,143 |
Manpower, Inc. | | 82,000 | | 4,600 |
Navistar International Corp. (Æ) | | 155,568 | | 7,520 |
Norfolk Southern Corp. | | 102,400 | | 6,075 |
Northrop Grumman Corp. | | 243,900 | | 16,544 |
PACCAR, Inc. (Ñ) | | 199,900 | | 9,299 |
Raytheon Co. | | 242,258 | | 14,124 |
SunPower Corp. (Æ)(Ñ) | | 370,700 | | 5,575 |
Textron, Inc. (Ñ) | | 230,450 | | 5,263 |
UAL Corp. (Æ) | | 124,200 | | 2,680 |
United Parcel Service, Inc. Class B | | 264,500 | | 18,288 |
United Technologies Corp. | | 130,760 | | 9,800 |
| | | | |
| | | | 475,501 |
| | | | |
| | |
| Technology - 17.8% | | | | |
Amphenol Corp. Class A | | 266,883 | | 12,333 |
AOL, Inc. (Æ) | | 93,900 | | 2,194 |
Apple, Inc. (Æ) | | 375,231 | | 97,980 |
Arrow Electronics, Inc. (Æ) | | 3,450 | | 105 |
ASML Holding NV Class G (Ñ) | | 74,860 | | 2,445 |
Avnet, Inc. (Æ) | | 382,510 | | 12,229 |
Baidu, Inc. - ADR (Æ) | | 8,500 | | 5,859 |
Broadcom Corp. Class A | | 643,756 | | 22,203 |
Check Point Software Technologies (Æ) | | 208,000 | | 7,409 |
Cisco Systems, Inc. (Æ) | | 2,650,014 | | 71,338 |
Cognizant Technology Solutions Corp. Class A (Æ) | | 151,957 | | 7,777 |
Cree, Inc. (Æ)(Ñ) | | 40,500 | | 2,965 |
Dell, Inc. (Æ) | | 1,663,985 | | 26,923 |
EMC Corp. (Æ) | | 329,600 | | 6,266 |
Equinix, Inc. (Æ)(Ñ) | | 51,200 | | 5,153 |
F5 Networks, Inc. (Æ) | | 168,100 | | 11,503 |
Google, Inc. Class A (Æ) | | 131,689 | | 69,195 |
Hewlett-Packard Co. | | 1,768,113 | | 91,889 |
Intel Corp. | | 1,580,750 | | 36,089 |
International Business Machines Corp. | | 329,445 | | 42,498 |
International Rectifier Corp. (Æ)(Ñ) | | 613,680 | | 14,127 |
Juniper Networks, Inc. (Æ) | | 316,900 | | 9,003 |
Lam Research Corp. (Æ) | | 292,310 | | 11,853 |
Marvell Technology Group, Ltd. (Æ) | | 521,560 | | 10,770 |
Maxim Integrated Products, Inc. (Ñ) | | 600,900 | | 11,669 |
Micron Technology, Inc. (Æ) | | 626,500 | | 5,858 |
Microsoft Corp. | | 1,948,375 | | 59,503 |
NetApp, Inc. (Æ) | | 414,165 | | 14,359 |
Nokia OYJ - ADR | | 143,000 | | 1,739 |
Oracle Corp. | | 1,586,527 | | 40,996 |
QUALCOMM, Inc. | | 1,473,199 | | 57,072 |
Research In Motion, Ltd. (Æ) | | 283,400 | | 20,175 |
Salesforce.com, Inc. (Æ)(Ñ) | | 106,000 | | 9,074 |
Seagate Technology (Æ) | | 248,100 | | 4,558 |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
Symantec Corp. (Æ) | | 427,332 | | 7,166 | |
Texas Instruments, Inc. | | 1,766,097 | | 45,936 | |
Tyco Electronics, Ltd. | | 198,499 | | 6,376 | |
| | | | | |
| | | | 864,587 | |
| | | | | |
| | |
| Utilities - 2.5% | | | | | |
Allegheny Energy, Inc. | | 550,744 | | 11,995 | |
American Electric Power Co., Inc. | | 93,167 | | 3,196 | |
AT&T, Inc. | | 1,119,620 | | 29,177 | |
BCE, Inc. | | 416,450 | | 12,535 | |
Mirant Corp. (Æ) | | 128,000 | | 1,493 | |
NII Holdings, Inc. (Æ) | | 79,500 | | 3,372 | |
PG&E Corp. | | 206,960 | | 9,065 | |
Progress Energy, Inc. - CVO | | 6,400 | | 1 | |
Public Service Enterprise Group, Inc. | | 176,100 | | 5,658 | |
RRI Energy, Inc. (Æ) | | 2,655,640 | | 10,808 | |
Verizon Communications, Inc. | | 441,100 | | 12,743 | |
Vodafone Group PLC - ADR | | 1,024,210 | | 22,738 | |
| | | | | |
| | | | 122,781 | |
| | | | | |
| | |
Total Common Stocks
(cost $3,877,436) | | | | 4,609,544 | |
| | | | | |
| |
| Short-Term Investments - 4.5% | | | |
Russell U.S. Cash Management Fund (£) | | 218,595,731 | | 218,596 | |
| | | | | |
| | |
Total Short-Term Investments
(cost $218,596) | | | | 218,596 | |
| | | | | |
| | |
| Other Securities - 5.2% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 142,346,304 | | 142,346 | |
State Street Securities Lending Quality Trust (×) | | 110,367,971 | | 110,079 | |
| | | | | |
| | |
Total Other Securities
(cost $252,714) | | | | 252,425 | |
| | | | | |
| | |
Total Investments - 104.7%
(identified cost $4,348,746) | | | | 5,080,565 | |
| | |
Other Assets and Liabilities,
Net - (4.7%) | | | | (228,125 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 4,852,440 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Core Equity Fund | | 7 |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
Russell 1000 Mini Index | | 371 | | USD | | 24,237 | | 06/10 | | 548 |
S&P 500 E-Mini Index (CME) | | 2,600 | | USD | | 153,842 | | 06/10 | | 2,019 |
S&P 500 Index (CME) | | 140 | | USD | | 41,419 | | 06/10 | | 1,410 |
S&P Midcap 400 E-Mini Index (CME) | | 228 | | USD | | 18,732 | | 06/10 | | 755 |
| | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 4,732 |
| | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 730,933 | | $ | — | | $ | — | | $ | 730,933 | | 15.1 | |
Consumer Staples | | | 311,560 | | | — | | | — | | | 311,560 | | 6.4 | |
Energy | | | 494,329 | | | — | | | — | | | 494,329 | | 10.2 | |
Financial Services | | | 812,188 | | | — | | | — | | | 812,188 | | 16.7 | |
Health Care | | | 532,419 | | | — | | | — | | | 532,419 | | 11.0 | |
Materials and Processing | | | 265,246 | | | — | | | — | | | 265,246 | | 5.5 | |
Producer Durables | | | 475,501 | | | — | | | — | | | 475,501 | | 9.8 | |
Technology | | | 864,587 | | | — | | | — | | | 864,587 | | 17.8 | |
Utilities | | | 122,781 | | | — | | | — | | | 122,781 | | 2.5 | |
Short-Term Investments | | | — | | | 218,596 | | | — | | | 218,596 | | 4.5 | |
Other Securities | | | — | | | 252,425 | | | | | | 252,425 | | 5.2 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 4,609,544 | | | 471,021 | | | — | | | 5,080,565 | | 104.7 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (4.7 | ) |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | |
Futures Contracts | | | 4,732 | | | — | | | — | | | 4,732 | | 0.1 | |
| | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 4,732 | | $ | — | | $ | — | | $ | 4,732 | | | |
| | | | | | | | | | | | | | | |
| * | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 8 | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 4,732 |
| | | |
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 35,326 |
| | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 4,455 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Core Equity Fund | | 9 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,141.80 | | $ | 1,018.55 |
Expenses Paid During Period* | | $ | 6.69 | | $ | 6.31 |
| * | 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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,137.60 | | $ | 1,014.88 |
Expenses Paid During Period* | | $ | 10.60 | | $ | 9.99 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.00% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,142.50 | | $ | 1,019.14 |
Expenses Paid During Period* | | $ | 6.06 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,143.80 | | $ | 1,020.38 |
Expenses Paid During Period* | | $ | 4.73 | | $ | 4.46 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.89% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 10 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,143.00 | | $ | 1,019.84 |
Expenses Paid During Period* | | $ | 5.31 | | $ | 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). |
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,143.60 | | $ | 1,020.68 |
Expenses Paid During Period* | | $ | 4.41 | | $ | 4.16 |
| * | 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). |
| | |
| Russell U.S. Quantitative Equity Fund | | 11 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 107.0% | | | | |
| Consumer Discretionary - 13.8% | | | | |
Abercrombie & Fitch Co. Class A | | 14,273 | | 624 |
Advance Auto Parts, Inc. | | 2,800 | | 126 |
Amazon.com, Inc. (Æ)(Û) | | 41,671 | | 5,711 |
American Eagle Outfitters, Inc. | | 23,800 | | 400 |
Apollo Group, Inc. Class A (Æ)(Û) | | 117,372 | | 6,738 |
Autoliv, Inc. (Æ) | | 73,929 | | 4,048 |
AutoNation, Inc. (Æ) | | 49,415 | | 998 |
Avon Products, Inc. | | 46,400 | | 1,500 |
Bed Bath & Beyond, Inc. (Æ) | | 11,100 | | 510 |
Best Buy Co., Inc. (Û) | | 134,800 | | 6,147 |
Big Lots, Inc. (Æ) | | 19,579 | | 748 |
BJ’s Wholesale Club, Inc. (Æ) | | 126,800 | | 4,854 |
Bob Evans Farms, Inc. | | 56,700 | | 1,754 |
BorgWarner, Inc. (Æ) | | 2,700 | | 117 |
Cablevision Systems Corp. Class A | | 77,400 | | 2,124 |
CarMax, Inc. (Æ) | | 66,200 | | 1,627 |
Carnival Corp. | | 189,131 | | 7,887 |
Chico’s FAS, Inc. | | 12,800 | | 191 |
Chipotle Mexican Grill, Inc. Class A (Æ) | | 500 | | 67 |
Coach, Inc. (Û) | | 233,600 | | 9,753 |
Columbia Sportswear Co. | | 16,700 | | 927 |
Comcast Corp. Class A (Û) | | 1,277,134 | | 25,211 |
Comcast Corp. Class A | | 38,472 | | 725 |
Costco Wholesale Corp. (Û) | | 155,380 | | 9,180 |
Cracker Barrel Old Country Store, Inc. | | 51,387 | | 2,537 |
Darden Restaurants, Inc. | | 353,000 | | 15,797 |
DeVry, Inc. | | 10,300 | | 643 |
Dick’s Sporting Goods, Inc. (Æ) | | 3,100 | | 90 |
DIRECTV, Inc. (Æ)(Û) | | 355,609 | | 12,884 |
Discovery Communications, Inc. (Æ) | | 49,600 | | 1,655 |
DISH Network Corp. Class A | | 520,320 | | 11,525 |
Dollar Tree, Inc. (Æ) | | 165,046 | | 10,022 |
DR Horton, Inc. | | 28,995 | | 426 |
DreamWorks Animation SKG, Inc. Class A (Æ) | | 28,200 | | 1,119 |
Eastman Kodak Co. (Æ) | | 245,800 | | 1,504 |
eBay, Inc. (Æ) | | 120,860 | | 2,878 |
Estee Lauder Cos., Inc. (The) Class A | | 140,300 | | 9,249 |
Expedia, Inc. | | 113,824 | | 2,687 |
Family Dollar Stores, Inc. | | 5,900 | | 233 |
Federal Mogul Corp. (Æ) | | 44,123 | | 839 |
Foot Locker, Inc. | | 179,069 | | 2,749 |
Ford Motor Co. (Æ)(Û) | | 465,100 | | 6,056 |
Gannett Co., Inc. | | 184,700 | | 3,144 |
Gap, Inc. (The) (Û) | | 1,392,133 | | 34,427 |
Garmin, Ltd. (Û) | | 181,700 | | 6,792 |
Gentex Corp. | | 9,000 | | 193 |
Group 1 Automotive, Inc. (Æ) | | 54,700 | | 1,698 |
Guess?, Inc. | | 19,021 | | 872 |
H&R Block, Inc. | | 29,700 | | 544 |
Hanesbrands, Inc. (Æ) | | 5,800 | | 165 |
Harley-Davidson, Inc. | | 8,500 | | 288 |
Harman International Industries, Inc. (Æ) | | 166,893 | | 6,589 |
Hillenbrand, Inc. | | 14,784 | | 363 |
Home Depot, Inc. | | 40,800 | | 1,438 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
IAC/InterActiveCorp (Æ) | | 158,100 | | 3,545 |
International Game Technology | | 33,500 | | 706 |
Interpublic Group of Cos., Inc. (Æ) | | 9,000 | | 80 |
Jarden Corp. | | 129,900 | | 4,172 |
JC Penney Co., Inc. | | 56,815 | | 1,657 |
John Wiley & Sons, Inc. Class A | | 28,191 | | 1,192 |
Johnson Controls, Inc. | | 59,047 | | 1,983 |
Kohl’s Corp. (Æ) | | 52,974 | | 2,913 |
Lamar Advertising Co. Class A (Æ) | | 1,600 | | 60 |
Leggett & Platt, Inc. | | 36,971 | | 907 |
Lennar Corp. Class A | | 1,000 | | 20 |
Liberty Global, Inc. Class A (Æ)(Û) | | 196,273 | | 5,380 |
Liberty Media Corp. - Capital Series A (Æ) | | 13,700 | | 606 |
Liberty Media Corp. - Interactive (Æ) | | 197,972 | | 3,043 |
Liberty Media Corp. - Starz Series A (Æ) | | 28,290 | | 1,567 |
Limited Brands, Inc. (Û) | | 433,745 | | 11,624 |
Macy’s, Inc. (Û) | | 391,600 | | 9,085 |
Madison Square Garden, Inc. (Æ) | | 21,675 | | 450 |
Marriott International, Inc. Class A | | 44,416 | | 1,633 |
Mattel, Inc. | | 774,200 | | 17,845 |
McDonald’s Corp. | | 81,100 | | 5,725 |
McGraw-Hill Cos., Inc. (The) | | 85,000 | | 2,866 |
MGM Mirage (Æ) | | 15,700 | | 249 |
Mohawk Industries, Inc. (Æ) | | 4,333 | | 276 |
NetFlix, Inc. (Æ) | | 57,925 | | 5,721 |
New York Times Co. (The) Class C (Æ) | | 13,800 | | 137 |
Newell Rubbermaid, Inc. | | 51,200 | | 874 |
News Corp. Class A | | 112,500 | | 1,735 |
Nike, Inc. Class B | | 12,756 | | 968 |
Nordstrom, Inc. | | 18,117 | | 749 |
NVR, Inc. (Æ) | | 600 | | 431 |
O’Reilly Automotive, Inc. (Æ) | | 7,100 | | 347 |
Omnicom Group, Inc. | | 212,182 | | 9,052 |
Panera Bread Co. Class A (Æ) | | 78,341 | | 6,106 |
PetSmart, Inc. | | 35,969 | | 1,189 |
PF Chang’s China Bistro, Inc. (Æ) | | 41,300 | | 1,802 |
Phillips-Van Heusen Corp. | | 6,900 | | 435 |
Polo Ralph Lauren Corp. Class A | | 93,100 | | 8,370 |
priceline.com, Inc. (Æ) | | 7,100 | | 1,861 |
RadioShack Corp. | | 84,300 | | 1,817 |
Rent-A-Center, Inc. Class A (Æ) | | 49,454 | | 1,277 |
Ross Stores, Inc. | | 155,785 | | 8,724 |
Royal Caribbean Cruises, Ltd. (Æ) | | 123,200 | | 4,415 |
Scripps Networks Interactive, Inc. | | 58,504 | | 2,653 |
Sears Holdings Corp. (Æ) | | 1,100 | | 133 |
Service Corp. International | | 119,600 | | 1,074 |
Signet Jewelers, Ltd. (Æ) | | 20,000 | | 640 |
Snap-On, Inc. | | 4,000 | | 193 |
Stanley Black & Decker, Inc. | | 7,687 | | 478 |
Staples, Inc. | | 13,200 | | 311 |
Starbucks Corp. (Û) | | 813,552 | | 21,136 |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | 5,800 | | 316 |
Target Corp. | | 110,200 | | 6,267 |
Tech Data Corp. (Æ) | | 76,008 | | 3,261 |
Tiffany & Co. | | 22,200 | | 1,076 |
Time Warner Cable, Inc. | | 32,160 | | 1,809 |
Time Warner, Inc. (Û) | | 1,609,414 | | 53,239 |
| | |
| 12 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
TJX Cos., Inc. | | 245,815 | | 11,391 |
Tractor Supply Co. | | 40,900 | | 2,747 |
TRW Automotive Holdings Corp. (Æ) | | 59,900 | | 1,929 |
Urban Outfitters, Inc. (Æ) | | 42,200 | | 1,583 |
VF Corp. | | 5,400 | | 467 |
Viacom, Inc. Class B (Æ) | | 227,700 | | 8,045 |
Virgin Media, Inc. | | 103,800 | | 1,826 |
WABCO Holdings, Inc. (Æ) | | 18,900 | | 627 |
Wal-Mart Stores, Inc. | | 886,532 | | 47,562 |
Walt Disney Co. (The) | | 104,739 | | 3,859 |
WESCO International, Inc. (Æ) | | 62,800 | | 2,551 |
Western Union Co. (The) | | 24,500 | | 447 |
Whirlpool Corp. | | 57,315 | | 6,240 |
Williams-Sonoma, Inc. | | 24,915 | | 718 |
WMS Industries, Inc. (Æ) | | 14,700 | | 735 |
Wolverine World Wide, Inc. | | 20,600 | | 631 |
Wyndham Worldwide Corp. | | 87,202 | | 2,338 |
Yum! Brands, Inc. | | 3,200 | | 136 |
| | | | |
| | | | 551,385 |
| | | | |
| | |
| Consumer Staples - 9.2% | | | | |
Altria Group, Inc. | | 31,200 | | 661 |
Archer-Daniels-Midland Co. (Û) | | 1,913,433 | | 53,461 |
Brown-Forman Corp. | | 55,300 | | 3,217 |
Bunge, Ltd. (Û) | | 54,000 | | 2,859 |
Campbell Soup Co. (Û) | | 235,400 | | 8,441 |
Church & Dwight Co., Inc. | | 62,601 | | 4,335 |
Clorox Co. (Û) | | 103,400 | | 6,690 |
Coca-Cola Co. (The) | | 249,275 | | 13,324 |
Coca-Cola Enterprises, Inc. | | 83,200 | | 2,307 |
Colgate-Palmolive Co. (Û) | | 114,900 | | 9,663 |
ConAgra Foods, Inc. (Û) | | 671,107 | | 16,422 |
Constellation Brands, Inc. Class A (Æ) | | 38,100 | | 696 |
Corn Products International, Inc. | | 9,900 | | 356 |
CVS Caremark Corp. | | 82,704 | | 3,054 |
Dean Foods Co. (Æ) | | 126,700 | | 1,989 |
Del Monte Foods Co. | | 84,100 | | 1,257 |
Dr Pepper Snapple Group, Inc. | | 38,300 | | 1,254 |
Energizer Holdings, Inc. (Æ) | | 94,600 | | 5,780 |
General Mills, Inc. | | 27,500 | | 1,957 |
Green Mountain Coffee Roasters, Inc. (Æ) | | 8,300 | | 603 |
Hansen Natural Corp. (Æ) | | 49,394 | | 2,177 |
Herbalife, Ltd. | | 26,003 | | 1,255 |
Hershey Co. (The) | | 8,500 | | 400 |
HJ Heinz Co. | | 19,900 | | 933 |
Hormel Foods Corp. | | 21,601 | | 881 |
JM Smucker Co. (The) | | 30,100 | | 1,838 |
Kellogg Co. | | 28,200 | | 1,549 |
Kimberly-Clark Corp. (Û) | | 735,695 | | 45,069 |
Kraft Foods, Inc. Class A | | 44,200 | | 1,308 |
Kroger Co. (The) (Û) | | 582,500 | | 12,949 |
Lorillard, Inc. | | 85,081 | | 6,668 |
Mead Johnson Nutrition Co. | | 29,800 | | 1,538 |
Molson Coors Brewing Co. Class B | | 10,900 | | 484 |
NBTY, Inc. (Æ) | | 39,229 | | 1,596 |
PepsiCo, Inc. (Û) | | 161,671 | | 10,544 |
Philip Morris International, Inc. (Û) | | 403,459 | | 19,802 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Procter & Gamble Co. (The) (Û) | | 663,032 | | 41,214 |
Reynolds American, Inc. | | 11,600 | | 620 |
Safeway, Inc. (Û) | | 772,900 | | 18,240 |
Sara Lee Corp. | | 87,500 | | 1,244 |
Smithfield Foods, Inc. (Æ) | | 30,000 | | 562 |
Sysco Corp. (Û) | | 1,106,858 | | 34,910 |
Tyson Foods, Inc. Class A | | 600,821 | | 11,770 |
United Natural Foods, Inc. (Æ) | | 33,583 | | 1,031 |
Walgreen Co. | | 258,239 | | 9,077 |
Whole Foods Market, Inc. (Æ) | | 23,000 | | 898 |
| | | | |
| | | | 366,883 |
| | | | |
| | |
| Energy - 11.0% | | | | |
Alpha Natural Resources, Inc. (Æ) | | 3,838 | | 181 |
Anadarko Petroleum Corp. | | 25,700 | | 1,598 |
Apache Corp. (Û) | | 186,100 | | 18,938 |
Atwood Oceanics, Inc. (Æ) | | 8,200 | | 299 |
Baker Hughes, Inc. | | 51,445 | | 2,560 |
Cabot Oil & Gas Corp. | | 12,900 | | 466 |
Cameron International Corp. (Æ) | | 21,800 | | 860 |
Chesapeake Energy Corp. | | 6,000 | | 143 |
Chevron Corp. (Û) | | 866,073 | | 70,533 |
Cimarex Energy Co. | | 55,467 | | 3,776 |
Concho Resources, Inc. (Æ) | | 4,700 | | 267 |
ConocoPhillips (Û) | | 962,755 | | 56,985 |
Denbury Resources, Inc. (Æ) | | 3,080 | | 59 |
Devon Energy Corp. | | 22,889 | | 1,541 |
Diamond Offshore Drilling, Inc. | | 8,400 | | 664 |
Dresser-Rand Group, Inc. (Æ) | | 10,700 | | 378 |
El Paso Corp. | | 16,600 | | 201 |
EOG Resources, Inc. | | 5,300 | | 594 |
EQT Corp. | | 32,400 | | 1,409 |
EXCO Resources, Inc. | | 248,139 | | 4,603 |
Exterran Holdings, Inc. (Æ) | | 47,252 | | 1,377 |
Exxon Mobil Corp. (Û) | | 1,223,082 | | 82,986 |
FMC Technologies, Inc. (Æ) | | 118,200 | | 8,001 |
Forest Oil Corp. (Æ) | | 127,582 | | 3,738 |
Halliburton Co. | | 57,479 | | 1,762 |
Helmerich & Payne, Inc. | | 3,200 | | 130 |
Hess Corp. | | 142,179 | | 9,036 |
Marathon Oil Corp. (Û) | | 559,000 | | 17,972 |
Murphy Oil Corp. (Û) | | 274,388 | | 16,504 |
Nabors Industries, Ltd. (Æ) | | 690,890 | | 14,903 |
National Oilwell Varco, Inc. (Û) | | 272,200 | | 11,985 |
Newfield Exploration Co. (Æ) | | 5,900 | | 343 |
Noble Corp. | | 126,000 | | 4,976 |
Noble Energy, Inc. | | 2,200 | | 168 |
Occidental Petroleum Corp. | | 326,500 | | 28,948 |
Oceaneering International, Inc. (Æ) | | 1,600 | | 105 |
Oil States International, Inc. (Æ) | | 13,275 | | 641 |
Patterson-UTI Energy, Inc. | | 3,900 | | 60 |
Peabody Energy Corp. | | 386,000 | | 18,034 |
Petrohawk Energy Corp. (Æ) | | 8,200 | | 177 |
Pioneer Natural Resources Co. | | 7,500 | | 481 |
Pride International, Inc. (Æ) | | 9,800 | | 297 |
Quicksilver Resources, Inc. (Æ) | | 10,200 | | 141 |
Range Resources Corp. | | 4,300 | | 205 |
| | |
| Russell U.S. Quantitative Equity Fund | | 13 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Rosetta Resources, Inc. (Æ) | | 44,351 | | 1,104 |
Rowan Cos., Inc. (Æ) | | 260,880 | | 7,774 |
Schlumberger, Ltd. | | 117,989 | | 8,427 |
Southwestern Energy Co. (Æ) | | 204,600 | | 8,119 |
Spectra Energy Corp. | | 33,600 | | 784 |
St. Mary Land & Exploration Co. | | 121,530 | | 4,890 |
Sunoco, Inc. | | 109,400 | | 3,586 |
Swift Energy Co. (Æ) | | 34,298 | | 1,241 |
Tesoro Corp. | | 66,608 | | 876 |
Unit Corp. (Æ) | | 7,000 | | 334 |
Valero Energy Corp. | | 18,558 | | 386 |
Walter Energy, Inc. Class A | | 63,500 | | 5,131 |
Whiting Petroleum Corp. (Æ) | | 1,800 | | 163 |
Williams Cos., Inc. (The) | | 324,600 | | 7,664 |
XTO Energy, Inc. | | 6,700 | | 318 |
| | | | |
| | | | 439,822 |
| | | | |
| | |
| Financial Services - 17.7% | | | | |
Aflac, Inc. (Û) | | 208,400 | | 10,620 |
Alexandria Real Estate Equities, Inc. (ö) | | 9,700 | | 687 |
Alliance Data Systems Corp. (Æ) | | 12,600 | | 946 |
Allied World Assurance Co. Holdings, Ltd. | | 5,600 | | 244 |
Allstate Corp. (The) (Û) | | 1,107,231 | | 36,173 |
American Express Co. | | 137,300 | | 6,332 |
American Financial Group, Inc. | | 10,600 | | 312 |
American International Group, Inc. (Æ) | | 19,500 | | 759 |
AmeriCredit Corp. (Æ) | | 37,049 | | 887 |
Ameriprise Financial, Inc. | | 163,400 | | 7,575 |
Annaly Capital Management, Inc. (ö) | | 58,200 | | 987 |
Apartment Investment & Management Co. Class A (ö) | | 87,081 | | 1,952 |
Apollo Investment Corp. | | 133,857 | | 1,628 |
Arch Capital Group, Ltd. (Æ) | | 72,200 | | 5,457 |
Aspen Insurance Holdings, Ltd. | | 147,000 | | 3,966 |
Assurant, Inc. | | 234,697 | | 8,550 |
Assured Guaranty, Ltd. | | 299,854 | | 6,462 |
AvalonBay Communities, Inc. (ö) | | 22,381 | | 2,329 |
Axis Capital Holdings, Ltd. | | 159,743 | | 4,979 |
Bank of America Corp. | | 958,263 | | 17,086 |
Bank of Hawaii Corp. | | 7,200 | | 381 |
Bank of New York Mellon Corp. (The) | | 209,179 | | 6,512 |
BB&T Corp. (Û) | | 326,271 | | 10,845 |
Berkshire Hathaway, Inc. Class A (Æ) | | 7 | | 807 |
BlackRock, Inc. Class A (Û) | | 36,638 | | 6,741 |
Boston Properties, Inc. (ö) | | 3,000 | | 237 |
Brandywine Realty Trust (ö) | | 50,300 | | 641 |
BRE Properties, Inc. Class A (ö) | | 4,400 | | 184 |
Broadridge Financial Solutions, Inc. | | 9,300 | | 221 |
Camden Property Trust (ö) | | 99,417 | | 4,815 |
Capital One Financial Corp. (Û) | | 185,003 | | 8,031 |
CB Richard Ellis Group, Inc. Class A (Æ) | | 22,100 | | 383 |
Charles Schwab Corp. (The) | | 10,800 | | 208 |
Chubb Corp. (Û) | | 231,419 | | 12,235 |
Citigroup, Inc. (Æ) | | 431,147 | | 1,884 |
City National Corp. | | 4,500 | | 280 |
CME Group, Inc. Class A | | 16,800 | | 5,517 |
CNA Financial Corp. (Æ) | | 159,500 | | 4,485 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Comerica, Inc. | | 253,700 | | 10,655 |
Commerce Bancshares, Inc. | | 3,600 | | 149 |
Cullen/Frost Bankers, Inc. | | 45,800 | | 2,719 |
Digital Realty Trust, Inc. (ö) | | 164,100 | | 9,633 |
Discover Financial Services (Û) | | 617,200 | | 9,542 |
Douglas Emmett, Inc. (ö) | | 21,400 | | 358 |
Eaton Vance Corp. | | 9,700 | | 342 |
Endurance Specialty Holdings, Ltd. | | 126,797 | | 4,672 |
Equity Residential (ö) | | 4,100 | | 186 |
Essex Property Trust, Inc. (ö) | | 1,700 | | 180 |
Everest Re Group, Ltd. | | 80,336 | | 6,158 |
Factset Research Systems, Inc. | | 13,100 | | 985 |
Federated Investors, Inc. Class B | | 28,765 | | 694 |
Fidelity National Information Services, Inc. | | 89,900 | | 2,363 |
Fifth Third Bancorp (Û) | | 741,100 | | 11,050 |
First American Corp. | | 19,500 | | 674 |
First Horizon National Corp. (Æ) | | 9,230 | | 131 |
Fiserv, Inc. (Æ) | | 12,500 | | 639 |
Franklin Resources, Inc. (Û) | | 100,900 | | 11,668 |
Fulton Financial Corp. | | 42,300 | | 444 |
Genworth Financial, Inc. Class A (Æ) | | 311,200 | | 5,141 |
Global Payments, Inc. | | 69,870 | | 2,991 |
Goldman Sachs Group, Inc. (The) (Û) | | 400,719 | | 58,184 |
Greenhill & Co., Inc. | | 1,000 | | 88 |
Hanover Insurance Group, Inc. (The) | | 9,100 | | 410 |
Hartford Financial Services Group, Inc. | | 270,400 | | 7,725 |
HCP, Inc. (ö) | | 7,800 | | 251 |
Health Care REIT, Inc. (ö) | | 17,126 | | 769 |
Hospitality Properties Trust (ö) | | 2,800 | | 74 |
Host Hotels & Resorts, Inc. (ö) | | 7,624 | | 124 |
HRPT Properties Trust (ö) | | 99,300 | | 779 |
Hudson City Bancorp, Inc. (Û) | | 3,085,048 | | 41,031 |
Huntington Bancshares, Inc. | | 192,400 | | 1,303 |
IntercontinentalExchange, Inc. (Æ) | | 2,500 | | 292 |
Invesco, Ltd. | | 17,000 | | 391 |
Jefferies Group, Inc. | | 35,800 | | 974 |
Jones Lang LaSalle, Inc. | | 4,900 | | 387 |
JPMorgan Chase & Co. (Û) | | 1,346,046 | | 57,315 |
KeyCorp | | 16,400 | | 148 |
Lazard, Ltd. Class A | | 15,600 | | 603 |
Legg Mason, Inc. | | 4,000 | | 127 |
Lender Processing Services, Inc. | | 31,400 | | 1,185 |
Liberty Property Trust (ö) | | 12,200 | | 412 |
Lincoln National Corp. | | 10,700 | | 327 |
Loews Corp. | | 85,900 | | 3,199 |
M&T Bank Corp. | | 63,505 | | 5,547 |
Macerich Co. (The) (ö) | | 5,014 | | 224 |
Mack-Cali Realty Corp. (ö) | | 2,200 | | 76 |
Marsh & McLennan Cos., Inc. | | 18,500 | | 448 |
Marshall & Ilsley Corp. | | 173,900 | | 1,583 |
Mastercard, Inc. Class A | | 7,100 | | 1,761 |
MetLife, Inc. | | 14,000 | | 638 |
Moody’s Corp. (Û) | | 141,100 | | 3,488 |
Morgan Stanley | | 24,500 | | 740 |
MSCI, Inc. Class A (Æ) | | 32,300 | | 1,119 |
Nationwide Health Properties, Inc. (ö) | | 21,612 | | 757 |
Northern Trust Corp. | | 400 | | 22 |
| | |
| 14 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
NYSE Euronext (Û) | | 480,382 | | 15,675 |
PartnerRe, Ltd. - ADR | | 94,754 | | 7,351 |
People’s United Financial, Inc. | | 406,157 | | 6,308 |
PNC Financial Services Group, Inc. (Û) | | 203,797 | | 13,697 |
Principal Financial Group, Inc. | | 14,800 | | 432 |
Progressive Corp. (The) (Û) | | 338,400 | | 6,798 |
ProLogis (ö) | | 372,900 | | 4,911 |
Prosperity Bancshares, Inc. | | 19,200 | | 753 |
Protective Life Corp. | | 25,400 | | 611 |
Prudential Financial, Inc. (Û) | | 176,000 | | 11,187 |
Public Storage (ö) | | 64,000 | | 6,202 |
Raymond James Financial, Inc. | | 21,600 | | 662 |
Rayonier, Inc. (ö) | | 2,600 | | 127 |
Regions Financial Corp. | | 92,000 | | 813 |
RenaissanceRe Holdings, Ltd. | | 54,707 | | 3,061 |
SEI Investments Co. | | 71,060 | | 1,596 |
Senior Housing Properties Trust (ö) | | 17,500 | | 393 |
Simon Property Group, Inc. (ö) | | 92,535 | | 8,237 |
SL Green Realty Corp. (ö) | | 54,200 | | 3,370 |
SLM Corp. (Æ) | | 98,500 | | 1,206 |
StanCorp Financial Group, Inc. | | 13,600 | | 611 |
State Street Corp. | | 25,500 | | 1,109 |
SunTrust Banks, Inc. (Û) | | 274,627 | | 8,129 |
T Rowe Price Group, Inc. (Û) | | 213,424 | | 12,274 |
Tanger Factory Outlet Centers (ö) | | 35,900 | | 1,493 |
Taubman Centers, Inc. (ö) | | 8,700 | | 377 |
TD Ameritrade Holding Corp. (Æ) | | 21,200 | | 424 |
Torchmark Corp. | | 1,000 | | 54 |
Total System Services, Inc. | | 56,600 | | 906 |
Transatlantic Holdings, Inc. | | 86,200 | | 4,287 |
Travelers Cos., Inc. (The) (Û) | | 696,484 | | 35,340 |
UDR, Inc. (ö) | | 49,200 | | 999 |
Umpqua Holdings Corp. | | 78,300 | | 1,170 |
Unitrin, Inc. | | 9,405 | | 275 |
Unum Group | | 1,288,965 | | 31,541 |
US Bancorp | | 114,125 | | 3,055 |
Ventas, Inc. (ö) | | 11,300 | | 534 |
Verisk Analytics, Inc. (Æ) | | 6,000 | | 168 |
Visa, Inc. | | 102,400 | | 9,240 |
Vornado Realty Trust (ö) | | 2,100 | | 175 |
Waddell & Reed Financial, Inc. Class A | | 5,800 | | 215 |
Washington Federal, Inc. | | 30,800 | | 634 |
Wells Fargo & Co. (Û) | | 976,266 | | 32,324 |
White Mountains Insurance Group, Ltd. | | 5,400 | | 1,855 |
XL Capital, Ltd. Class A | | 406,496 | | 7,236 |
Zions Bancorporation | | 101,100 | | 2,905 |
| | | | |
| | | | 706,933 |
| | | | |
| | |
| Health Care - 13.6% | | | | |
Abbott Laboratories | | 56,600 | | 2,896 |
Aetna, Inc. (Û) | | 162,800 | | 4,811 |
Alexion Pharmaceuticals, Inc. (Æ) | | 10,300 | | 565 |
Allergan, Inc. | | 30,000 | | 1,911 |
Allscripts-Misys Healthcare Solutions, Inc. (Æ) | | 20,300 | | 409 |
AmerisourceBergen Corp. Class A (Û) | | 964,658 | | 29,760 |
Amgen, Inc. (Æ)(Û) | | 322,418 | | 18,494 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Amylin Pharmaceuticals, Inc. (Æ) | | 27,600 | | 570 |
Baxter International, Inc. | | 16,300 | | 770 |
Beckman Coulter, Inc. | | 125,800 | | 7,850 |
Bio-Rad Laboratories, Inc. Class A (Æ) | | 4,300 | | 480 |
Biogen Idec, Inc. (Æ)(Û) | | 154,881 | | 8,247 |
Boston Scientific Corp. (Æ)(Û) | | 1,155,263 | | 7,948 |
Bristol-Myers Squibb Co. | | 99,800 | | 2,524 |
Cardinal Health, Inc. (Û) | | 998,099 | | 34,624 |
CareFusion Corp. (Æ) | | 177,740 | | 4,902 |
Celgene Corp. (Æ) | | 82,000 | | 5,080 |
Cephalon, Inc. (Æ) | | 26,310 | | 1,689 |
Cerner Corp. (Æ) | | 16,600 | | 1,410 |
Charles River Laboratories International, Inc. (Æ) | | 33,400 | | 1,118 |
Cigna Corp. | | 67,800 | | 2,174 |
Community Health Systems, Inc. (Æ) | | 10,700 | | 437 |
Cooper Cos., Inc. (The) | | 2,500 | | 97 |
Covance, Inc. (Æ) | | 25,100 | | 1,434 |
Coventry Health Care, Inc. (Æ) | | 430,002 | | 10,208 |
Covidien PLC | | 408,249 | | 19,592 |
DaVita, Inc. (Æ) | | 9,700 | | 606 |
Dendreon Corp. (Æ) | | 22,100 | | 1,198 |
Dentsply International, Inc. | | 4,200 | | 154 |
Edwards Lifesciences Corp. (Æ) | | 5,200 | | 536 |
Eli Lilly & Co. (Û) | | 1,007,941 | | 35,248 |
Emergency Medical Services Corp. Class A (Æ) | | 15,400 | | 814 |
Endo Pharmaceuticals Holdings, Inc. (Æ) | | 6,300 | | 138 |
ev3, Inc. (Æ) | | 28,356 | | 542 |
Express Scripts, Inc. Class A (Æ) | | 14,800 | | 1,482 |
Forest Laboratories, Inc. (Æ)(Û) | | 1,324,690 | | 36,111 |
Gilead Sciences, Inc. (Æ)(Û) | | 303,453 | | 12,038 |
Health Management Associates, Inc. Class A (Æ) | | 15,200 | | 142 |
Health Net, Inc. (Æ) | | 187,300 | | 4,124 |
Healthspring, Inc. (Æ) | | 12,688 | | 223 |
Henry Schein, Inc. (Æ) | | 5,600 | | 339 |
Hill-Rom Holdings, Inc. | | 116,569 | | 3,696 |
Hospira, Inc. (Æ) | | 33,900 | | 1,824 |
Humana, Inc. (Æ) | | 438,400 | | 20,044 |
IDEXX Laboratories, Inc. (Æ) | | 10,100 | | 668 |
Integra LifeSciences Holdings Corp. (Æ) | | 12,922 | | 587 |
Intuitive Surgical, Inc. (Æ) | | 13,300 | | 4,795 |
Inverness Medical Innovations, Inc. (Æ) | | 26,100 | | 1,038 |
Johnson & Johnson (Û) | | 638,060 | | 41,027 |
Kinetic Concepts, Inc. (Æ) | | 23,600 | | 1,022 |
King Pharmaceuticals, Inc. (Æ) | | 727,515 | | 7,130 |
Life Technologies Corp. (Æ) | | 29,500 | | 1,614 |
LifePoint Hospitals, Inc. (Æ) | | 4,000 | | 153 |
Lincare Holdings, Inc. (Æ) | | 19,700 | | 920 |
Magellan Health Services, Inc. (Æ) | | 36,015 | | 1,520 |
McKesson Corp. (Û) | | 213,795 | | 13,856 |
Medco Health Solutions, Inc. (Æ)(Û) | | 241,148 | | 14,208 |
Mednax, Inc. (Æ) | | 21,500 | | 1,181 |
Medtronic, Inc. | | 597,700 | | 26,114 |
Merck & Co., Inc. | | 187,831 | | 6,582 |
Millipore Corp. (Æ) | | 1,600 | | 170 |
| | |
| Russell U.S. Quantitative Equity Fund | | 15 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Mylan, Inc. (Æ) | | 366,900 | | 8,083 |
Nektar Therapeutics (Æ) | | 8,000 | | 112 |
Par Pharmaceutical Cos., Inc. (Æ) | | 54,405 | | 1,477 |
Patterson Cos., Inc. | | 206,914 | | 6,619 |
PerkinElmer, Inc. | | 40,100 | | 1,005 |
Perrigo Co. | | 18,700 | | 1,141 |
Pfizer, Inc. | | 2,704,273 | | 45,215 |
Quest Diagnostics, Inc. (Û) | | 87,500 | | 5,002 |
ResMed, Inc. (Æ) | | 2,600 | | 178 |
St. Jude Medical, Inc. (Æ) | | 3,000 | | 122 |
Stryker Corp. | | 7,300 | | 419 |
Teleflex, Inc. | | 9,900 | | 607 |
Tenet Healthcare Corp. (Æ) | | 189,400 | | 1,184 |
Thermo Fisher Scientific, Inc. (Æ) | | 12,300 | | 680 |
United Therapeutics Corp. (Æ) | | 16,000 | | 910 |
UnitedHealth Group, Inc. (Û) | | 359,266 | | 10,889 |
Universal American Corp. (Æ) | | 33,592 | | 516 |
Universal Health Services, Inc. Class B | | 69,400 | | 2,576 |
Valeant Pharmaceuticals International (Æ) | | 24,600 | | 1,107 |
Varian Medical Systems, Inc. (Æ) | | 6,800 | | 383 |
Vertex Pharmaceuticals, Inc. (Æ) | | 13,600 | | 527 |
Watson Pharmaceuticals, Inc. Class B (Æ) | | 4,400 | | 188 |
WebMD Health Corp. Class A (Æ) | | 25,243 | | 1,223 |
WellPoint, Inc. (Æ)(Û) | | 607,628 | | 32,690 |
Zimmer Holdings, Inc. (Æ) | | 134,000 | | 8,162 |
| | | | |
| | | | 542,859 |
| | | | |
| | |
| Materials and Processing - 3.2% | | | | |
Air Products & Chemicals, Inc. | | 25,400 | | 1,950 |
Albemarle Corp. | | 5,600 | | 256 |
Alcoa, Inc. (Û) | | 544,979 | | 7,324 |
Armstrong World Industries, Inc. (Æ) | | 25,888 | | 1,127 |
Ashland, Inc. | | 177,900 | | 10,596 |
Ball Corp. | | 12,400 | | 660 |
Cabot Corp. | | 10,500 | | 342 |
Celanese Corp. Class A | | 36,100 | | 1,155 |
CF Industries Holdings, Inc. | | 5,848 | | 489 |
Cliffs Natural Resources, Inc. | | 54,600 | | 3,414 |
Compass Minerals International, Inc. | | 2,200 | | 166 |
Crown Holdings, Inc. (Æ) | | 19,500 | | 507 |
Cytec Industries, Inc. | | 43,600 | | 2,095 |
Dow Chemical Co. (The) | | 41,530 | | 1,280 |
Eastman Chemical Co. | | 51,113 | | 3,420 |
EI du Pont de Nemours & Co. | | 136,376 | | 5,433 |
Freeport-McMoRan Copper & Gold, Inc. Class B (Û) | | 135,441 | | 10,230 |
General Cable Corp. (Æ) | | 5,867 | | 168 |
Greif, Inc. Class A | | 5,400 | | 320 |
Huntsman Corp. | | 555,162 | | 6,334 |
International Flavors & Fragrances, Inc. | | 85,613 | | 4,288 |
International Paper Co. | | 340,315 | | 9,100 |
Lennox International, Inc. | | 19,472 | | 881 |
Lubrizol Corp. | | 142,835 | | 12,904 |
Masco Corp. | | 20,022 | | 325 |
MeadWestvaco Corp. | | 93,439 | | 2,539 |
Monsanto Co. | | 1,600 | | 101 |
NewMarket Corp. | | 5,400 | | 594 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Newmont Mining Corp. | | 15,061 | | 845 |
Nucor Corp. | | 17,466 | | 792 |
Owens Corning (Æ) | | 6,500 | | 226 |
Owens-Illinois, Inc. (Æ) | | 15,400 | | 546 |
Packaging Corp. of America | | 11,400 | | 282 |
PPG Industries, Inc. (Û) | | 124,900 | | 8,789 |
Praxair, Inc. | | 2,800 | | 235 |
Precision Castparts Corp. | | 13,900 | | 1,784 |
Reliance Steel & Aluminum Co. | | 36,814 | | 1,797 |
RPM International, Inc. | | 48,200 | | 1,064 |
Schnitzer Steel Industries, Inc. Class A | | 14,093 | | 761 |
Scotts Miracle-Gro Co. (The) Class A | | 11,196 | | 542 |
Sealed Air Corp. | | 19,200 | | 413 |
Sherwin-Williams Co. (The) | | 107,500 | | 8,392 |
Sigma-Aldrich Corp. | | 1,700 | | 101 |
Silgan Holdings, Inc. | | 40,350 | | 2,434 |
Southern Copper Corp. (Û) | | 277,000 | | 8,471 |
Temple-Inland, Inc. | | 12,000 | | 280 |
Timken Co. | | 18,836 | | 663 |
Valmont Industries, Inc. | | 2,200 | | 183 |
Valspar Corp. | | 5,300 | | 166 |
| | | | |
| | | | 126,764 |
| | | | |
| | |
| Producer Durables - 12.1% | | | | |
3M Co. (Û) | | 245,842 | | 21,799 |
Accenture PLC Class A | | 109,130 | | 4,762 |
Aecom Technology Corp. (Æ) | | 6,700 | | 201 |
AGCO Corp. (Æ) | | 107,200 | | 3,754 |
Agilent Technologies, Inc. (Æ) | | 88,500 | | 3,209 |
Alexander & Baldwin, Inc. | | 18,700 | | 665 |
AO Smith Corp. | | 39,725 | | 2,051 |
Automatic Data Processing, Inc. | | 2,100 | | 91 |
Avery Dennison Corp. | | 220,800 | | 8,618 |
BE Aerospace, Inc. (Æ) | | 7,000 | | 208 |
Boeing Co. (The) (Û) | | 153,800 | | 11,140 |
Brink’s Home Security Holdings, Inc. (Æ) | | 18,100 | | 759 |
Bucyrus International, Inc. Class A | | 3,800 | | 239 |
Carlisle Cos., Inc. | | 22,100 | | 834 |
Caterpillar, Inc. | | 38,400 | | 2,615 |
CH Robinson Worldwide, Inc. | | 58,600 | | 3,534 |
Cintas Corp. | | 10,493 | | 286 |
Con-way, Inc. | | 13,100 | | 509 |
Continental Airlines, Inc. Class B (Æ) | | 7,600 | | 170 |
Convergys Corp. (Æ) | | 62,300 | | 787 |
Copa Holdings SA Class A | | 10,300 | | 584 |
Corrections Corp. of America (Æ) | | 56,900 | | 1,179 |
Crane Co. | | 51,700 | | 1,858 |
CSX Corp. | | 35,300 | | 1,979 |
Cummins, Inc. | | 1,900 | | 137 |
Deere & Co. | | 4,900 | | 293 |
Delta Air Lines, Inc. (Æ) | | 20,400 | | 246 |
Dover Corp. (Û) | | 173,800 | | 9,076 |
Eaton Corp. | | 133,617 | | 10,310 |
EMCOR Group, Inc. (Æ) | | 130,200 | | 3,718 |
Emerson Electric Co. | | 105,260 | | 5,498 |
FedEx Corp. (Û) | | 202,531 | | 18,230 |
Flowserve Corp. | | 4,100 | | 470 |
| | |
| 16 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Fluor Corp. (Û) | | 155,400 | | 8,211 |
Frontline, Ltd. | | 4,400 | | 161 |
Gardner Denver, Inc. | | 11,800 | | 593 |
General Dynamics Corp. | | 68,200 | | 5,208 |
General Electric Co. | | 1,281,535 | | 24,170 |
Goodrich Corp. (Û) | | 81,000 | | 6,009 |
Graco, Inc. | | 6,700 | | 232 |
Harsco Corp. | | 8,000 | | 248 |
Hewitt Associates, Inc. Class A (Æ) | | 97,100 | | 3,980 |
Honeywell International, Inc. | | 74,902 | | 3,556 |
Hubbell, Inc. Class B | | 6,400 | | 297 |
Illinois Tool Works, Inc. | | 119,800 | | 6,122 |
ITT Corp. (Û) | | 57,982 | | 3,222 |
JB Hunt Transport Services, Inc. | | 4,000 | | 147 |
Joy Global, Inc. | | 2,600 | | 148 |
Kansas City Southern (Æ) | | 21,200 | | 860 |
KBR, Inc. | | 278,800 | | 6,156 |
Kirby Corp. (Æ) | | 400 | | 17 |
L-3 Communications Holdings, Inc. (Û) | | 155,400 | | 14,541 |
Lexmark International, Inc. Class A (Æ) | | 297,656 | | 11,028 |
Lockheed Martin Corp. (Û) | | 181,500 | | 15,408 |
Manpower, Inc. | | 198,500 | | 11,136 |
Mettler-Toledo International, Inc. (Æ) | | 11,700 | | 1,468 |
Monster Worldwide, Inc. (Æ) | | 16,600 | | 289 |
Nalco Holding Co. | | 19,700 | | 487 |
National Instruments Corp. | | 16,800 | | 581 |
Nordson Corp. | | 9,500 | | 682 |
Norfolk Southern Corp. | | 17,000 | | 1,009 |
Northrop Grumman Corp. (Û) | | 997,280 | | 67,645 |
Oshkosh Corp. (Æ) | | 129,574 | | 5,004 |
PACCAR, Inc. | | 22,007 | | 1,024 |
Parker Hannifin Corp. | | 2,200 | | 152 |
Paychex, Inc. | | 1,300 | | 40 |
Quanta Services, Inc. (Æ) | | 8,600 | | 173 |
Raytheon Co. (Û) | | 821,975 | | 47,921 |
Republic Services, Inc. Class A | | 5,700 | | 177 |
Rockwell Automation, Inc. | | 67,508 | | 4,099 |
Rockwell Collins, Inc. | | 21,100 | | 1,371 |
RR Donnelley & Sons Co. | | 74,600 | | 1,603 |
Ryder System, Inc. | | 8,700 | | 405 |
Southwest Airlines Co. | | 71,600 | | 944 |
Spirit Aerosystems Holdings, Inc. Class A (Æ) | | 25,500 | | 566 |
Teekay Corp. | | 117,155 | | 2,935 |
TeleTech Holdings, Inc. (Æ) | | 38,386 | | 635 |
Tetra Tech, Inc. (Æ) | | 33,900 | | 825 |
Textron, Inc. | | 30,800 | | 703 |
Thomas & Betts Corp. (Æ) | | 1,800 | | 75 |
Tidewater, Inc. | | 5,600 | | 300 |
Toro Co. (The) | | 20,856 | | 1,188 |
TransDigm Group, Inc. | | 7,200 | | 398 |
Trinity Industries, Inc. | | 8,765 | | 218 |
Tyco International, Ltd. (Û) | | 779,600 | | 30,241 |
UAL Corp. (Æ) | | 70,600 | | 1,524 |
Unifirst Corp. | | 5,900 | | 288 |
Union Pacific Corp. (Û) | | 115,800 | | 8,761 |
United Parcel Service, Inc. Class B | | 107,168 | | 7,410 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
United Technologies Corp. (Û) | | 447,700 | | 33,555 |
URS Corp. (Æ) | | 27,783 | | 1,427 |
UTi Worldwide, Inc. | | 113,700 | | 1,802 |
Waste Connections, Inc. (Æ) | | 4,600 | | 165 |
Waste Management, Inc. | | 19,000 | | 659 |
Waters Corp. (Æ) | | 14,100 | | 1,015 |
Werner Enterprises, Inc. | | 130,504 | | 2,926 |
WW Grainger, Inc. | | 46,500 | | 5,140 |
Xerox Corp. | | 63,168 | | 688 |
Zebra Technologies Corp. Class A (Æ) | | 21,300 | | 619 |
| | | | |
| | | | 480,396 |
| | | | |
| | |
| Technology - 18.8% | | | | |
Activision Blizzard, Inc. | | 279,511 | | 3,097 |
ADC Telecommunications, Inc. (Æ) | | 91,000 | | 729 |
Adobe Systems, Inc. (Æ)(Û) | | 164,900 | | 5,539 |
Advanced Micro Devices, Inc. (Æ) | | 66,142 | | 599 |
Altera Corp. | | 19,700 | | 500 |
Amdocs, Ltd. (Æ) | | 207,000 | | 6,612 |
Amphenol Corp. Class A | | 8,500 | | 393 |
Analog Devices, Inc. | | 49,600 | | 1,485 |
Ansys, Inc. (Æ) | | 21,500 | | 967 |
AOL, Inc. (Æ) | | 46,927 | | 1,096 |
Apple, Inc. (Æ) | | 61,500 | | 16,059 |
Applied Materials, Inc. | | 14,600 | | 201 |
Arris Group, Inc. (Æ) | | 128,900 | | 1,584 |
Arrow Electronics, Inc. (Æ) | | 125,666 | | 3,833 |
Autodesk, Inc. (Æ) | | 10,800 | | 367 |
Avnet, Inc. (Æ) | | 358,700 | | 11,468 |
Benchmark Electronics, Inc. (Æ) | | 62,208 | | 1,346 |
BMC Software, Inc. (Æ) | | 8,900 | | 350 |
Broadcom Corp. Class A (Û) | | 250,436 | | 8,638 |
Brocade Communications Systems, Inc. (Æ) | | 38,300 | | 249 |
CACI International, Inc. Class A (Æ) | | 18,900 | | 896 |
Cadence Design Systems, Inc. (Æ) | | 527,644 | | 3,936 |
Cavium Networks, Inc. (Æ) | | 62,300 | | 1,720 |
Ciena Corp. (Æ) | | 79,800 | | 1,476 |
Cisco Systems, Inc. (Æ)(Û) | | 1,171,088 | | 31,526 |
Citrix Systems, Inc. (Æ) | | 15,600 | | 733 |
Cognizant Technology Solutions Corp. Class A (Æ)(Û) | | 111,416 | | 5,702 |
Computer Sciences Corp. (Æ)(Û) | | 318,142 | | 16,667 |
Corning, Inc. 2008 | | 160,200 | | 3,084 |
Cree, Inc. (Æ) | | 19,200 | | 1,406 |
Crown Castle International Corp. (Æ) | | 42,500 | | 1,609 |
CSG Systems International, Inc. (Æ) | | 35,000 | | 795 |
Dell, Inc. (Æ)(Û) | | 731,001 | | 11,828 |
Diebold, Inc. | | 11,900 | | 373 |
Earthlink, Inc. | | 274,485 | | 2,476 |
EchoStar Corp. (Æ) | | 39,959 | | 768 |
Electronic Arts, Inc. Series C (Æ) | | 347,688 | | 6,735 |
EMC Corp. (Æ) | | 142,882 | | 2,716 |
Equinix, Inc. (Æ) | | 3,300 | | 332 |
F5 Networks, Inc. (Æ) | | 29,900 | | 2,046 |
Fairchild Semiconductor International, Inc. Class A (Æ) | | 51,628 | | 579 |
Flir Systems, Inc. (Æ) | | 23,900 | | 731 |
| | |
| Russell U.S. Quantitative Equity Fund | | 17 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Google, Inc. Class A (Æ)(Û) | | 63,463 | | 33,346 |
Harris Corp. (Û) | | 390,100 | | 20,082 |
Hewlett-Packard Co. (Û) | | 479,000 | | 24,894 |
Ingram Micro, Inc. Class A (Æ) | | 413,775 | | 7,514 |
Integrated Device Technology, Inc. (Æ) | | 647,117 | | 4,277 |
Intel Corp. (Û) | | 3,475,886 | | 79,354 |
International Business Machines Corp. (Û) | | 543,427 | | 70,102 |
Intersil Corp. Class A | | 18,500 | | 275 |
Intuit, Inc. (Æ) | | 97,900 | | 3,540 |
Jabil Circuit, Inc. | | 486,100 | | 7,447 |
JDS Uniphase Corp. (Æ) | | 241,495 | | 3,137 |
Juniper Networks, Inc. (Æ)(Û) | | 176,900 | | 5,026 |
KLA-Tencor Corp. | | 35,200 | | 1,199 |
Lam Research Corp. (Æ) | | 6,100 | | 247 |
Linear Technology Corp. | | 31,700 | | 953 |
LSI Corp. (Æ) | | 842,194 | | 5,070 |
Mantech International Corp. Class A (Æ) | | 36,300 | | 1,635 |
Marvell Technology Group, Ltd. (Æ) | | 60,400 | | 1,247 |
Maxim Integrated Products, Inc. (Û) | | 198,600 | | 3,857 |
McAfee, Inc. (Æ) | | 5,300 | | 184 |
Microchip Technology, Inc. | | 29,300 | | 856 |
Micron Technology, Inc. (Æ) | | 1,716,453 | | 16,049 |
MICROS Systems, Inc. (Æ) | | 12,400 | | 461 |
Microsoft Corp. (Û) | | 3,321,140 | | 101,428 |
Molex, Inc. | | 278,367 | | 6,238 |
Motorola, Inc. (Æ)(Û) | | 1,552,605 | | 10,977 |
National Semiconductor Corp. | | 25,700 | | 380 |
NCR Corp. (Æ) | | 168,000 | | 2,211 |
NetApp, Inc. (Æ) | | 72,600 | | 2,517 |
NeuStar, Inc. Class A (Æ) | | 5,500 | | 135 |
Novellus Systems, Inc. (Æ) | | 18,400 | | 482 |
NVIDIA Corp. (Æ) | | 7,600 | | 119 |
ON Semiconductor Corp. (Æ) | | 9,000 | | 71 |
Oracle Corp. | | 357,587 | | 9,240 |
Plexus Corp. (Æ) | | 56,200 | | 2,082 |
PMC - Sierra, Inc. (Æ) | | 18,700 | | 165 |
QLogic Corp. (Æ) | | 15,000 | | 291 |
QUALCOMM, Inc. | | 97,300 | | 3,769 |
Rambus, Inc. (Æ) | | 29,200 | | 705 |
Red Hat, Inc. (Æ) | | 38,300 | | 1,144 |
RF Micro Devices, Inc. (Æ) | | 297,200 | | 1,670 |
Rovi Corp. (Æ) | | 41,853 | | 1,631 |
SAIC, Inc. (Æ) | | 65,000 | | 1,132 |
Salesforce.com, Inc. (Æ) | | 14,100 | | 1,207 |
SanDisk Corp. (Æ) | | 127,851 | | 5,100 |
SBA Communications Corp. Class A (Æ) | | 6,500 | | 230 |
Seagate Technology (Æ)(Û) | | 1,927,703 | | 35,412 |
Silicon Laboratories, Inc. (Æ) | | 14,900 | | 720 |
Symantec Corp. (Æ)(Û) | | 1,005,525 | | 16,863 |
SYNNEX Corp. (Æ) | | 8,251 | | 226 |
Synopsys, Inc. (Æ) | | 301,933 | | 6,857 |
Syntel, Inc. | | 7,083 | | 256 |
Tellabs, Inc. | | 1,192,597 | | 10,829 |
Teradata Corp. (Æ) | | 87,100 | | 2,532 |
Texas Instruments, Inc. (Û) | | 655,316 | | 17,045 |
Trimble Navigation, Ltd. (Æ) | | 9,300 | | 304 |
Tyco Electronics, Ltd. | | 627,368 | | 20,151 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Unisys Corp. (Æ) | | 29,400 | | 824 |
Varian Semiconductor Equipment Associates, Inc. (Æ) | | 5,400 | | 178 |
VeriSign, Inc. (Æ) | | 11,096 | | 303 |
Vishay Intertechnology, Inc. (Æ) | | 14,000 | | 146 |
VMware, Inc. Class A (Æ) | | 6,400 | | 394 |
Western Digital Corp. (Æ)(Û) | | 670,223 | | 27,539 |
Xilinx, Inc. | | 12,100 | | 312 |
Yahoo!, Inc. (Æ) | | 28,800 | | 476 |
| | | | |
| | | | 748,289 |
| | | | |
| | |
| Utilities - 7.6% | | | | |
AES Corp. (The) (Æ) | | 192,100 | | 2,217 |
Alliant Energy Corp. | | 6,500 | | 222 |
Ameren Corp. | | 195,000 | | 5,062 |
American Electric Power Co., Inc. (Û) | | 253,800 | | 8,705 |
American Water Works Co., Inc. | | 364,212 | | 7,933 |
AT&T, Inc. (Û) | | 3,623,320 | | 94,424 |
Atmos Energy Corp. | | 19,700 | | 583 |
Calpine Corp. (Æ) | | 56,600 | | 771 |
CenterPoint Energy, Inc. | | 26,500 | | 381 |
CenturyTel, Inc. (Û) | | 210,313 | | 7,174 |
CMS Energy Corp. | | 6,800 | | 111 |
Constellation Energy Group, Inc. | | 1,021,515 | | 36,111 |
Dominion Resources, Inc. | | 30,988 | | 1,295 |
DPL, Inc. | | 13,600 | | 383 |
DTE Energy Co. (Û) | | 132,271 | | 6,372 |
Duke Energy Corp. | | 272,097 | | 4,566 |
Dynegy, Inc. Class A (Æ) | | 991,134 | | 1,318 |
Edison International (Û) | | 673,700 | | 23,155 |
Energen Corp. | | 32,700 | | 1,598 |
Entergy Corp. (Û) | | 86,100 | | 6,999 |
Exelon Corp. | | 40,308 | | 1,757 |
FirstEnergy Corp. | | 4,200 | | 159 |
FPL Group, Inc. (Û) | | 171,400 | | 8,921 |
Great Plains Energy, Inc. | | 29,700 | | 574 |
Hawaiian Electric Industries, Inc. | | 16,000 | | 374 |
Integrys Energy Group, Inc. | | 39,308 | | 1,950 |
MDU Resources Group, Inc. | | 43,965 | | 932 |
Mirant Corp. (Æ) | | 49,964 | | 583 |
National Fuel Gas Co. | | 31,400 | | 1,633 |
NII Holdings, Inc. (Æ) | | 377,700 | | 16,022 |
NiSource, Inc. | | 96,719 | | 1,577 |
NRG Energy, Inc. (Æ) | | 28,400 | | 686 |
NV Energy, Inc. | | 451,557 | | 5,640 |
OGE Energy Corp. | | 20,900 | | 865 |
Oneok, Inc. | | 23,100 | | 1,135 |
Pepco Holdings, Inc. | | 56,600 | | 947 |
PG&E Corp. (Û) | | 175,400 | | 7,683 |
Pinnacle West Capital Corp. | | 107,100 | | 3,999 |
PNM Resources, Inc. | | 17,594 | | 239 |
Portland General Electric Co. | | 74,117 | | 1,473 |
PPL Corp. | | 4,300 | | 106 |
Public Service Enterprise Group, Inc. (Û) | | 268,097 | | 8,614 |
Questar Corp. | | 7,900 | | 379 |
Sempra Energy (Û) | | 69,800 | | 3,433 |
Southern Union Co. | | 47,300 | | 1,236 |
| | |
| 18 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | |
Sprint Nextel Corp. (Æ) | | 468,503 | | | 1,991 | |
TECO Energy, Inc. | | 56,100 | | | 950 | |
Telephone & Data Systems, Inc. | | 9,187 | | | 318 | |
Time Warner Telecom, Inc. Class A (Æ) | | 12,200 | | | 217 | |
UGI Corp. | | 13,100 | | | 360 | |
UIL Holdings Corp. | | 900 | | | 26 | |
US Cellular Corp. (Æ) | | 4,491 | | | 189 | |
Verizon Communications, Inc. (Û) | | 531,868 | | | 15,366 | |
Westar Energy, Inc. | | 21,850 | | | 518 | |
Windstream Corp. | | 13,800 | | | 152 | |
| | | | | | |
| | | | | 300,384 | |
| | | | | | |
| | |
Total Common Stocks
(cost $3,786,606) | | | | | 4,263,715 | |
| | | | | | |
| | |
| Short-Term Investments - 2.6% | | | | | | |
Russell U.S. Cash Management Fund | | 105,307,766 | | | 105,308 | |
| | | | | | |
| | |
Total Short-Term Investments
(cost $105,308) | | | | | 105,308 | |
| | | | | | |
| | |
Total Investments - 109.6%
(identified cost $3,891,914) | | | | | 4,369,023 | |
| | | | | | |
| | |
| Securities Sold Short - (10.0%) | | | | | | |
| Consumer Discretionary - (2.1%) | | | | | | |
Amazon.com, Inc. (Æ) | | (47,500 | ) | | (6,510 | ) |
American Greetings Corp. Class A | | (56,900 | ) | | (1,397 | ) |
BorgWarner, Inc. (Æ) | | (127,900 | ) | | (5,543 | ) |
Clear Channel Outdoor Holdings, Inc. Class A (Æ) | | (90,201 | ) | | (1,045 | ) |
Coinstar, Inc. (Æ) | | (62,100 | ) | | (2,755 | ) |
Cooper Tire & Rubber Co. | | (72,100 | ) | | (1,530 | ) |
Federal Mogul Corp. (Æ) | | (58,694 | ) | | (1,116 | ) |
Gentex Corp. | | (53,600 | ) | | (1,152 | ) |
Hillenbrand, Inc. | | (19,000 | ) | | (467 | ) |
Iconix Brand Group, Inc. (Æ) | | (160,000 | ) | | (2,762 | ) |
Interval Leisure Group, Inc. (Æ) | | (36,400 | ) | | (538 | ) |
Las Vegas Sands Corp. (Æ) | | (212,800 | ) | | (5,290 | ) |
Liberty Media Corp. - Capital Series A (Æ) | | (139,532 | ) | | (6,177 | ) |
MGM Mirage (Æ) | | (425,200 | ) | | (6,756 | ) |
National Presto Industries, Inc. | | (1,700 | ) | | (190 | ) |
O’Reilly Automotive, Inc. (Æ) | | (138,500 | ) | | (6,771 | ) |
Pier 1 Imports, Inc. (Æ) | | (15,100 | ) | | (125 | ) |
Saks, Inc. (Æ) | | (66,400 | ) | | (647 | ) |
Sally Beauty Holdings, Inc. (Æ) | | (283,525 | ) | | (2,708 | ) |
Scientific Games Corp. Class A (Æ) | | (14,800 | ) | | (218 | ) |
Service Corp. International | | (189,286 | ) | | (1,700 | ) |
Sotheby’s Class A | | (91,500 | ) | | (3,056 | ) |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | (130,800 | ) | | (7,130 | ) |
Time Warner Cable, Inc. | | (88,000 | ) | | (4,950 | ) |
Vail Resorts, Inc. (Æ) | | (10,500 | ) | | (479 | ) |
Wynn Resorts, Ltd. Class T | | (80,000 | ) | | (7,059 | ) |
Yum! Brands, Inc. | | (100,200 | ) | | (4,250 | ) |
| | | | | | |
| | | | | (82,321 | ) |
| | | | | | |
| | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Consumer Staples - (0.2%) | | | | | | |
Bunge, Ltd. | | (59,900 | ) | | (3,172 | ) |
Herbalife, Ltd. | | (17,100 | ) | | (825 | ) |
Molson Coors Brewing Co. Class B | | (80,800 | ) | | (3,584 | ) |
| | | | | | |
| | | | | (7,581 | ) |
| | | | | | |
| | |
| Energy - (1.5%) | | | | | | |
Anadarko Petroleum Corp. | | (109,700 | ) | | (6,819 | ) |
Chesapeake Energy Corp. | | (144,800 | ) | | (3,446 | ) |
Contango Oil & Gas Co. (Æ) | | (22,782 | ) | | (1,251 | ) |
Denbury Resources, Inc. (Æ) | | (260,316 | ) | | (4,985 | ) |
Exterran Holdings, Inc. (Æ) | | (192,258 | ) | | (5,604 | ) |
First Solar, Inc. (Æ) | | (53,100 | ) | | (7,623 | ) |
Gran Tierra Energy, Inc. (Æ) | | (175,053 | ) | | (1,061 | ) |
Noble Energy, Inc. | | (78,600 | ) | | (6,005 | ) |
Petrohawk Energy Corp. (Æ) | | (331,200 | ) | | (7,151 | ) |
Range Resources Corp. | | (151,900 | ) | | (7,255 | ) |
Spectra Energy Corp. | | (334,000 | ) | | (7,796 | ) |
Weatherford International, Ltd. (Æ) | | (48,700 | ) | | (882 | ) |
| | | | | | |
| | | | | (59,878 | ) |
| | | | | | |
| | |
| Financial Services - (2.3%) | | | | | | |
American Capital, Ltd. (Æ) | | (122,600 | ) | | (753 | ) |
Amtrust Financial Services, Inc. | | (38,900 | ) | | (530 | ) |
Anworth Mortgage Asset Corp. (ö) | | (360,857 | ) | | (2,421 | ) |
Associated Banc-Corp. | | (133,445 | ) | | (1,939 | ) |
Cathay General Bancorp | | (129,600 | ) | | (1,603 | ) |
CB Richard Ellis Group, Inc. Class A (Æ) | | (33,731 | ) | | (584 | ) |
Citigroup, Inc. (Æ) | | (706,100 | ) | | (3,086 | ) |
CNA Surety Corp. (Æ) | | (1,900 | ) | | (32 | ) |
Discover Financial Services | | (338,300 | ) | | (5,230 | ) |
Fifth Third Bancorp | | (582,300 | ) | | (8,682 | ) |
Flagstar Bancorp, Inc. (Æ) | | (441,400 | ) | | (280 | ) |
Forest City Enterprises, Inc. Class A (Æ) | | (152,373 | ) | | (2,354 | ) |
GLG Partners, Inc. (Æ) | | (49,887 | ) | | (162 | ) |
Hatteras Financial Corp. (ö) | | (162,026 | ) | | (4,321 | ) |
Interactive Brokers Group, Inc. Class A (Æ) | | (115,200 | ) | | (1,975 | ) |
International Bancshares Corp. | | (38,051 | ) | | (920 | ) |
KeyCorp | | (991,100 | ) | | (8,940 | ) |
Markel Corp. (Æ) | | (2,881 | ) | | (1,103 | ) |
MGIC Investment Corp. (Æ) | | (219,500 | ) | | (2,289 | ) |
National Penn Bancshares, Inc. | | (227,103 | ) | | (1,662 | ) |
Northern Trust Corp. | | (141,100 | ) | | (7,758 | ) |
Ocwen Financial Corp. (Æ) | | (175,759 | ) | | (2,030 | ) |
Pico Holdings, Inc. (Æ) | | (20,800 | ) | | (739 | ) |
Plum Creek Timber Co., Inc. (ö) | | (87,300 | ) | | (3,475 | ) |
Potlatch Corp. (ö) | | (118,600 | ) | | (4,443 | ) |
Radian Group, Inc. | | (68,300 | ) | | (969 | ) |
Regions Financial Corp. | | (1,193,000 | ) | | (10,550 | ) |
SunTrust Banks, Inc. | | (254,500 | ) | | (7,533 | ) |
TD Ameritrade Holding Corp. (Æ) | | (191,100 | ) | | (3,826 | ) |
Wilmington Trust Corp. | | (175,700 | ) | | (3,045 | ) |
Wright Express Corp. (Æ) | | (6,500 | ) | | (221 | ) |
| | | | | | |
| | | | | (93,455 | ) |
| | | | | | |
| | |
| Russell U.S. Quantitative Equity Fund | | 19 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | |
| Health Care - (1.1%) | | | | | | |
Abraxis Bioscience, Inc. (Æ) | | (10,600 | ) | | (530 | ) |
Acorda Therapeutics, Inc. (Æ) | | (55,700 | ) | | (2,158 | ) |
Allos Therapeutics, Inc. (Æ) | | (394,294 | ) | | (3,115 | ) |
AMAG Pharmaceuticals, Inc. (Æ) | | (23,612 | ) | | (806 | ) |
Auxilium Pharmaceuticals, Inc. (Æ) | | (47,200 | ) | | (1,680 | ) |
Boston Scientific Corp. (Æ) | | (838,500 | ) | | (5,769 | ) |
Cepheid, Inc. (Æ) | | (87,628 | ) | | (1,752 | ) |
Cerner Corp. (Æ) | | (81,900 | ) | | (6,954 | ) |
Emeritus Corp. (Æ) | | (11,800 | ) | | (264 | ) |
Human Genome Sciences, Inc. (Æ) | | (53,500 | ) | | (1,481 | ) |
Illumina, Inc. (Æ) | | (74,700 | ) | | (3,128 | ) |
PDL BioPharma, Inc. | | (417,200 | ) | | (2,428 | ) |
Pharmaceutical Product Development, Inc. | | (94,663 | ) | | (2,603 | ) |
Savient Pharmaceuticals, Inc. (Æ) | | (55,100 | ) | | (799 | ) |
Vertex Pharmaceuticals, Inc. (Æ) | | (192,900 | ) | | (7,479 | ) |
Vivus, Inc. (Æ) | | (122,600 | ) | | (1,249 | ) |
Volcano Corp. (Æ) | | (28,585 | ) | | (687 | ) |
| | | | | | |
| | | | | (42,882 | ) |
| | | | | | |
| | |
| Materials and Processing - (0.9%) | | | | | | |
Allied Nevada Gold Corp. (Æ) | | (70,993 | ) | | (1,298 | ) |
Armstrong World Industries, Inc. (Æ) | | (65,500 | ) | | (2,853 | ) |
Eagle Materials, Inc. | | (32,000 | ) | | (1,020 | ) |
Intrepid Potash, Inc. (Æ) | | (104,202 | ) | | (2,736 | ) |
Mueller Industries, Inc. | | (6,400 | ) | | (190 | ) |
Schnitzer Steel Industries, Inc. Class A | | (72,800 | ) | | (3,931 | ) |
Schweitzer-Mauduit International, Inc. | | (69,400 | ) | | (3,950 | ) |
Stillwater Mining Co. (Æ) | | (85,600 | ) | | (1,447 | ) |
United States Steel Corp. | | (124,500 | ) | | (6,805 | ) |
USG Corp. (Æ) | | (119,500 | ) | | (2,820 | ) |
Vulcan Materials Co. | | (143,600 | ) | | (8,225 | ) |
| | | | | | |
| | | | | (35,275 | ) |
| | | | | | |
| | |
| Producer Durables - (0.7%) | | | | | | |
Allegiant Travel Co. Class A (Æ) | | (1,000 | ) | | (51 | ) |
Atlas Air Worldwide Holdings, Inc. (Æ) | | (20,500 | ) | | (1,133 | ) |
Herman Miller, Inc. | | (115,227 | ) | | (2,445 | ) |
Iron Mountain, Inc. | | (215,500 | ) | | (5,420 | ) |
JetBlue Airways Corp. (Æ) | | (260,991 | ) | | (1,459 | ) |
PACCAR, Inc. | | (202,000 | ) | | (9,397 | ) |
PHH Corp. (Æ) | | (70,800 | ) | | (1,606 | ) |
Roper Industries, Inc. | | (100,900 | ) | | (6,157 | ) |
Skywest, Inc. | | (45,600 | ) | | (683 | ) |
US Airways Group, Inc. (Æ) | | (82,600 | ) | | (584 | ) |
| | | | | | |
| | | | | (28,935 | ) |
| | | | | | |
| | |
| Technology - (1.1%) | | | | | | |
Amkor Technology, Inc. (Æ) | | (154,900 | ) | | (1,168 | ) |
AsiaInfo Holdings, Inc. (Æ) | | (101,400 | ) | | (2,881 | ) |
Cognex Corp. | | (50,000 | ) | | (1,046 | ) |
Cree, Inc. (Æ) | | (61,200 | ) | | (4,480 | ) |
EchoStar Corp. (Æ) | | (31,900 | ) | | (613 | ) |
| | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Electronic Arts, Inc. Series C (Æ) | | (155,600 | ) | | (3,014 | ) |
Formfactor, Inc. (Æ) | | (190,055 | ) | | (2,853 | ) |
Hittite Microwave Corp. (Æ) | | (41,000 | ) | | (2,102 | ) |
II-VI, Inc. (Æ) | | (33,333 | ) | | (1,195 | ) |
InterDigital, Inc. (Æ) | | (59,100 | ) | | (1,635 | ) |
JDA Software Group, Inc. (Æ) | | (68,900 | ) | | (1,991 | ) |
MEMC Electronic Materials, Inc. (Æ) | | (179,600 | ) | | (2,329 | ) |
Rambus, Inc. (Æ) | | (1,000 | ) | | (24 | ) |
Salesforce.com, Inc. (Æ) | | (101,300 | ) | | (8,671 | ) |
Tessera Technologies, Inc. (Æ) | | (108,100 | ) | | (2,192 | ) |
Viasat, Inc. (Æ) | | (37,600 | ) | | (1,333 | ) |
VMware, Inc. Class A (Æ) | | (85,500 | ) | | (5,270 | ) |
| | | | | | |
| | | | | (42,797 | ) |
| | | | | | |
| Utilities - (0.1%) | | | | | | |
Southern Co. | | (106,500 | ) | | (3,681 | ) |
| | | | | | |
| | |
Total Securities Sold Short
(proceeds $330,978) | | | | | (396,805 | ) |
| | | | | | |
| | |
Other Assets and Liabilities,
Net - 0.4% | | | | | 14,628 | |
| | | | | | |
| | |
| Net Assets - 100.0% | | | | | 3,986,846 | |
| | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 20 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Long Positions | | | | | | | | | | | |
Russell 1000 Mini Index | | 191 | | USD | | 12,478 | | 06/10 | | 117 | |
S&P 500 E-Mini Index (CME) | | 1,080 | | USD | | 63,904 | | 06/10 | | (208 | ) |
S&P 500 Index (CME) | | 90 | | USD | | 26,627 | | 06/10 | | 380 | |
S&P Midcap 400 E-Mini Index (CME) | | 104 | | USD | | 8,545 | | 06/10 | | 138 | |
| | | | | | | | | | | |
| |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | 427 | |
| | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Quantitative Equity Fund | | 21 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | Level 3 | | Total | | |
| | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 551,385 | | | $ | — | | $ | — | | $ | 551,385 | | | 13.8 | |
Consumer Staples | | | 366,883 | | | | — | | | — | | | 366,883 | | | 9.2 | |
Energy | | | 439,822 | | | | — | | | — | | | 439,822 | | | 11.0 | |
Financial Services | | | 706,933 | | | | — | | | — | | | 706,933 | | | 17.7 | |
Health Care | | | 542,859 | | | | — | | | — | | | 542,859 | | | 13.6 | |
Materials and Processing | | | 126,764 | | | | — | | | — | | | 126,764 | | | 3.2 | |
Producer Durables | | | 480,396 | | | | — | | | — | | | 480,396 | | | 12.1 | |
Technology | | | 748,289 | | | | — | | | — | | | 748,289 | | | 18.8 | |
Utilities | | | 300,384 | | | | — | | | — | | | 300,384 | | | 7.6 | |
Short-Term Investments | | | — | | | | 105,308 | | | — | | | 105,308 | | | 2.6 | |
| | | | | | | | | | | | | | | | | |
Total Investments | | | 4,263,715 | | | | 105,308 | | | — | | | 4,369,023 | | | 109.6 | |
| | | | | | | | | | | | | | | | | |
Securities Sold Short | | | (396,805 | ) | | | — | | | — | | | (396,805 | ) | | (10.0 | ) |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | 0.4 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 427 | | | | — | | | — | | | 427 | | | — | * |
| | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | 427 | | | | — | | | — | | | 427 | | | | |
| | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 635 |
| | | |
| |
| Location: Statement of Assets and Liabilities - Liabilities | | | |
Daily variation margin on futures contracts* | | $ | 208 |
| | | |
| | | |
| Derivatives not accounted for as hedging instruments | | |
| | | |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 28,513 |
| | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 925 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 22 | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Growth Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,144.30 | | $ | 1,014.63 |
Expenses Paid During Period* | | $ | 10.90 | | $ | 10.24 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.05% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,149.30 | | $ | 1,018.35 |
Expenses Paid During Period* | | $ | 6.93 | | $ | 6.51 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.30% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,152.70 | | $ | 1,020.23 |
Expenses Paid During Period* | | $ | 4.91 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,151.00 | | $ | 1,019.59 |
Expenses Paid During Period* | | $ | 5.60 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Russell U.S. Growth Fund | | 23 |
Russell Investment Company
Russell U.S. Growth Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 95.7% | | | | |
| Consumer Discretionary - 16.2% | | | | |
Amazon.com, Inc. (Æ) | | 5,941 | | 814 |
Apollo Group, Inc. Class A (Æ) | | 13,573 | | 779 |
Avon Products, Inc. | | 6,560 | | 212 |
Best Buy Co., Inc. | | 5,093 | | 232 |
Coach, Inc. | | 5,230 | | 218 |
Costco Wholesale Corp. | | 7,138 | | 422 |
Darden Restaurants, Inc. | | 5,700 | | 255 |
Dick’s Sporting Goods, Inc. (Æ) | | 6,428 | | 187 |
eBay, Inc. (Æ) | | 11,500 | | 274 |
Fastenal Co. (Ñ) | | 11,200 | | 613 |
Guess?, Inc. | | 5,757 | | 264 |
Harley-Davidson, Inc. | | 10,840 | | 367 |
JC Penney Co., Inc. | | 2,100 | | 61 |
Johnson Controls, Inc. | | 5,130 | | 172 |
Las Vegas Sands Corp. (Æ) | | 18,380 | | 457 |
Lowe’s Cos., Inc. | | 64,890 | | 1,760 |
McDonald’s Corp. | | 3,700 | | 261 |
Nike, Inc. Class B (Ñ) | | 14,000 | | 1,063 |
Nordstrom, Inc. | | 5,488 | | 227 |
priceline.com, Inc. (Æ) | | 4,139 | | 1,085 |
Royal Caribbean Cruises, Ltd. (Æ)(Ñ) | | 4,200 | | 151 |
Scripps Networks Interactive, Inc. | | 6,580 | | 298 |
Staples, Inc. | | 58,100 | | 1,367 |
Starbucks Corp. | | 20,400 | | 530 |
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö) | | 8,690 | | 474 |
Target Corp. | | 13,191 | | 750 |
Tiffany & Co. (Ñ) | | 4,000 | | 194 |
VF Corp. | | 2,700 | | 233 |
Walt Disney Co. (The) | | 17,075 | | 629 |
Western Union Co. (The) | | 41,349 | | 755 |
Whirlpool Corp. | | 2,640 | | 287 |
Yum! Brands, Inc. | | 5,900 | | 250 |
| | | | |
| | | | 15,641 |
| | | | |
| | |
| Consumer Staples - 7.2% | | | | |
Coca-Cola Co. (The) | | 14,200 | | 759 |
Colgate-Palmolive Co. | | 6,666 | | 561 |
CVS Caremark Corp. | | 11,540 | | 426 |
Diageo PLC - ADR | | 4,034 | | 275 |
General Mills, Inc. | | 6,783 | | 483 |
Mead Johnson Nutrition Co. | | 6,820 | | 352 |
PepsiCo, Inc. | | 24,230 | | 1,580 |
Philip Morris International, Inc. | | 14,348 | | 704 |
Procter & Gamble Co. (The) | | 9,200 | | 572 |
Walgreen Co. | | 19,200 | | 675 |
Whole Foods Market, Inc. (Æ) | | 13,500 | | 527 |
| | | | |
| | | | 6,914 |
| | | | |
| | |
| Energy - 5.7% | | | | |
Alpha Natural Resources, Inc. (Æ) | | 3,250 | | 153 |
Anadarko Petroleum Corp. | | 8,976 | | 558 |
Apache Corp. | | 1,900 | | 193 |
EOG Resources, Inc. | | 8,900 | | 998 |
Exxon Mobil Corp. | | 3,800 | | 258 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
National Oilwell Varco, Inc. | | 11,800 | | 520 |
Occidental Petroleum Corp. | | 4,210 | | 373 |
Petrohawk Energy Corp. (Æ) | | 35,592 | | 769 |
Schlumberger, Ltd. | | 14,399 | | 1,028 |
Southwestern Energy Co. (Æ) | | 7,720 | | 306 |
Weatherford International, Ltd. (Æ) | | 22,220 | | 402 |
| | | | |
| | | | 5,558 |
| | | | |
| | |
| Financial Services - 10.6% | | | | |
American Express Co. | | 8,600 | | 397 |
Bank of America Corp. | | 37,828 | | 674 |
Bank of New York Mellon Corp. (The) | | 22,700 | | 707 |
Charles Schwab Corp. (The) | | 15,980 | | 308 |
Citigroup, Inc. (Æ) | | 31,700 | | 138 |
CME Group, Inc. Class A | | 2,350 | | 772 |
Goldman Sachs Group, Inc. (The) | | 4,157 | | 604 |
IntercontinentalExchange, Inc. (Æ) | | 9,794 | | 1,142 |
JPMorgan Chase & Co. | | 2,600 | | 111 |
Lincoln National Corp. | | 5,200 | | 159 |
Mastercard, Inc. Class A (Ñ) | | 5,774 | | 1,432 |
MetLife, Inc. | | 3,000 | | 137 |
Morgan Stanley (Ñ) | | 1,000 | | 30 |
Prudential Financial, Inc. | | 6,670 | | 424 |
State Street Corp. | | 17,600 | | 766 |
T Rowe Price Group, Inc. (Ñ) | | 4,630 | | 266 |
Visa, Inc. | | 21,580 | | 1,947 |
Wells Fargo & Co. | | 6,520 | | 216 |
| | | | |
| | | | 10,230 |
| | | | |
| | |
| Health Care - 14.3% | | | | |
Allergan, Inc. | | 22,010 | | 1,402 |
Amgen, Inc. (Æ) | | 2,200 | | 126 |
Beckman Coulter, Inc. | | 2,100 | | 131 |
Bristol-Myers Squibb Co. | | 5,500 | | 139 |
Celgene Corp. (Æ) | | 10,878 | | 674 |
Cerner Corp. (Æ)(Ñ) | | 7,970 | | 677 |
Edwards Lifesciences Corp. (Æ) | | 1,310 | | 135 |
Express Scripts, Inc. Class A (Æ) | | 2,830 | | 283 |
Gilead Sciences, Inc. (Æ) | | 43,145 | | 1,712 |
Hospira, Inc. (Æ) | | 4,000 | | 215 |
Intuitive Surgical, Inc. (Æ)(Ñ) | | 1,260 | | 454 |
Johnson & Johnson | | 13,500 | | 868 |
McKesson Corp. | | 5,040 | | 327 |
Medco Health Solutions, Inc. (Æ) | | 15,600 | | 919 |
Medtronic, Inc. | | 5,700 | | 249 |
Merck & Co., Inc. | | 8,200 | | 287 |
Myriad Genetics, Inc. (Æ) | | 24,958 | | 599 |
Novo Nordisk A/S - ADR | | 10,700 | | 879 |
NuVasive, Inc. (Æ) | | 2,846 | | 118 |
St. Jude Medical, Inc. (Æ) | | 6,070 | | 248 |
Stryker Corp. | | 3,420 | | 197 |
Teva Pharmaceutical Industries, Ltd. - ADR | | 16,890 | | 992 |
Thermo Fisher Scientific, Inc. (Æ) | | 5,230 | | 289 |
UnitedHealth Group, Inc. | | 29,388 | | 891 |
WellPoint, Inc. (Æ) | | 6,490 | | 349 |
Zimmer Holdings, Inc. (Æ) | | 10,900 | | 664 |
| | | | |
| | | | 13,824 |
| | | | |
| | |
| 24 | | Russell U.S. Growth Fund |
Russell Investment Company
Russell U.S. Growth Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Materials and Processing - 4.1% | | | | |
Air Products & Chemicals, Inc. | | 3,400 | | 261 |
Dow Chemical Co. (The) | | 8,100 | | 250 |
Ecolab, Inc. (Ñ) | | 9,100 | | 444 |
Freeport-McMoRan Copper & Gold, Inc. Class B | | 5,260 | | 397 |
Monsanto Co. | | 15,290 | | 964 |
Praxair, Inc. | | 8,100 | | 679 |
Rio Tinto PLC - ADR | | 3,804 | | 193 |
Syngenta AG - ADR | | 11,500 | | 581 |
Teck Resources, Ltd. Class B | | 4,400 | | 173 |
| | | | |
| | | | 3,942 |
| | | | |
| | |
| Producer Durables - 6.9% | | | | |
3M Co. | | 2,900 | | 257 |
ABB, Ltd. - ADR | | 12,300 | | 236 |
Automatic Data Processing, Inc. | | 9,200 | | 399 |
Caterpillar, Inc. | | 7,140 | | 486 |
Cummins, Inc. | | 6,930 | | 501 |
Expeditors International of Washington, Inc. | | 15,900 | | 648 |
FedEx Corp. | | 4,825 | | 434 |
Fluor Corp. | | 11,823 | | 625 |
Goodrich Corp. | | 7,720 | | 573 |
Honeywell International, Inc. | | 22,199 | | 1,054 |
McDermott International, Inc. (Æ) | | 6,400 | | 175 |
SunPower Corp. (Æ)(Ñ) | | 8,400 | | 126 |
Terex Corp. (Æ)(Ñ) | | 4,901 | | 130 |
Textron, Inc. (Ñ) | | 25,839 | | 590 |
Waters Corp. (Æ) | | 5,630 | | 405 |
| | | | |
| | | | 6,639 |
| | | | |
| | |
| Technology - 30.3% | | | | |
Adobe Systems, Inc. (Æ) | | 43,127 | | 1,449 |
Altera Corp. | | 10,200 | | 259 |
Apple, Inc. (Æ) | | 20,239 | | 5,285 |
ASML Holding NV Class G (Ñ) | | 9,320 | | 304 |
Baidu, Inc. - ADR (Æ) | | 423 | | 292 |
Broadcom Corp. Class A | | 21,098 | | 728 |
Brocade Communications Systems, Inc. (Æ) | | 33,439 | | 217 |
Cisco Systems, Inc. (Æ) | | 54,100 | | 1,456 |
Cognizant Technology Solutions Corp. Class A (Æ) | | 6,380 | | 326 |
Cree, Inc. (Æ)(Ñ) | | 4,270 | | 313 |
Crown Castle International Corp. (Æ) | | 24,600 | | 931 |
Dell, Inc. (Æ) | | 10,500 | | 170 |
EMC Corp. (Æ) | | 21,200 | | 403 |
Google, Inc. Class A (Æ) | | 4,880 | | 2,564 |
Hewlett-Packard Co. | | 40,149 | | 2,087 |
Intel Corp. | | 6,500 | | 148 |
International Business Machines Corp. | | 4,100 | | 529 |
Intuit, Inc. (Æ) | | 25,100 | | 908 |
Juniper Networks, Inc. (Æ) | | 9,420 | | 268 |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
Lam Research Corp. (Æ) | | 9,790 | | 397 | |
Marvell Technology Group, Ltd. (Æ) | | 19,000 | | 392 | |
Maxim Integrated Products, Inc. | | 13,700 | | 266 | |
Micron Technology, Inc. (Æ)(Ñ) | | 25,860 | | 242 | |
Microsoft Corp. | | 34,500 | | 1,054 | |
Oracle Corp. | | 75,085 | | 1,940 | |
QUALCOMM, Inc. | | 77,514 | | 3,003 | |
Red Hat, Inc. (Æ) | | 9,100 | | 272 | |
Salesforce.com, Inc. (Æ)(Ñ) | | 3,440 | | 294 | |
Symantec Corp. (Æ) | | 33,000 | | 553 | |
Teradata Corp. (Æ) | | 22,600 | | 657 | |
Texas Instruments, Inc. | | 9,600 | | 250 | |
Varian Semiconductor Equipment Associates, Inc. (Æ)(Ñ) | | 6,300 | | 207 | |
VeriSign, Inc. (Æ) | | 32,600 | | 889 | |
VMware, Inc. Class A (Æ) | | 3,460 | | 213 | |
| | | | | |
| | | | 29,266 | |
| | | | | |
| | |
| Utilities - 0.4% | | | | | |
FPL Group, Inc. | | 4,423 | | 230 | |
Millicom International Cellular SA | | 1,690 | | 149 | |
| | | | | |
| | | | 379 | |
| | | | | |
| | |
Total Common Stocks
(cost $75,479) | | | | 92,393 | |
| | | | | |
| | |
| Short-Term Investments - 4.3% | | | | | |
Russell U.S. Cash Management Fund (£) | | 4,138,948 | | 4,139 | |
| | | | | |
| | |
Total Short-Term Investments
(cost $4,139) | | | | 4,139 | |
| | | | | |
| | |
| Other Securities - 5.5% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 3,005,759 | | 3,006 | |
State Street Securities Lending Quality Trust (×) | | 2,330,510 | | 2,324 | |
| | | | | |
| | |
Total Other Securities
(cost $5,336) | | | | 5,330 | |
| | | | | |
| | |
Total Investments - 105.5%
(identified cost $84,954) | | | | 101,862 | |
| | |
Other Assets and Liabilities,
Net - (5.5%) | | | | (5,336 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 96,526 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Growth Fund | | 25 |
Russell Investment Company
Russell U.S. Growth Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | |
| Long Positions | | | | | | | | | | | |
Nasdaq 100 E-Mini Index (CME) | | 22 | | USD | | 879 | | 06/10 | | 14 | |
S&P 500 E-Mini Index (CME) | | 42 | | USD | | 2,485 | | 06/10 | | (26 | ) |
S&P 500 Index (CME) | | 2 | | USD | | 592 | | 06/10 | | 22 | |
| | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | 10 | |
| | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 26 | | Russell U.S. Growth Fund |
Russell Investment Company
Russell U.S. Growth Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 15,641 | | $ | — | | | | $ | 15,641 | | 16.2 | |
Consumer Staples | | | 6,914 | | | — | | — | | | 6,914 | | 7.2 | |
Energy | | | 5,558 | | | — | | — | | | 5,558 | | 5.7 | |
Financial Services | | | 10,230 | | | — | | — | | | 10,230 | | 10.6 | |
Health Care | | | 13,824 | | | — | | — | | | 13,824 | | 14.3 | |
Materials and Processing | | | 3,942 | | | — | | — | | | 3,942 | | 4.1 | |
Producer Durables | | | 6,639 | | | — | | — | | | 6,639 | | 6.9 | |
Technology | | | 29,266 | | | — | | — | | | 29,266 | | 30.3 | |
Utilities | | | 379 | | | — | | — | | | 379 | | 0.4 | |
Short-Term Investments | | | — | | | 4,139 | | — | | | 4,139 | | 4.3 | |
Other Securities | | | — | | | 5,330 | | — | | | 5,330 | | 5.5 | |
| | | | | | | | | | | | | | |
Total Investments | | | 92,393 | | | 9,469 | | — | | | 101,862 | | 105.5 | |
| | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | (5.5 | ) |
| | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | |
Futures Contracts | | | 10 | | | — | | — | | | 10 | | — | * |
| | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | 10 | | | — | | — | | | 10 | | | |
| | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 36 |
| | | |
| |
| Location: Statement of Assets and Liabilities - Liabilities | | | |
Daily variation margin on futures contracts* | | $ | 26 |
| | | |
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 486 |
| | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 49 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Growth Fund | | 27 |
Russell Investment Company
Russell U.S. Value Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,185.10 | | $ | 1,014.48 |
Expenses Paid During Period* | | $ | 11.27 | | $ | 10.39 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.08% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,190.60 | | $ | 1,018.20 |
Expenses Paid During Period* | | $ | 7.22 | | $ | 6.66 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.33% (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). |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,192.00 | | $ | 1,019.84 |
Expenses Paid During Period* | | $ | 5.43 | | $ | 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). |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,192.10 | | $ | 1,019.44 |
Expenses Paid During Period* | | $ | 5.87 | | $ | 5.41 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.08% (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). |
| | |
| 28 | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 95.3% | | | | |
| Consumer Discretionary - 10.8% | | | | |
Comcast Corp. Class A | | 24,500 | | 484 |
Darden Restaurants, Inc. | | 4,800 | | 215 |
DIRECTV, Inc. (Æ) | | 40,971 | | 1,484 |
DR Horton, Inc. (Ñ) | | 30,400 | | 447 |
eBay, Inc. (Æ) | | 27,750 | | 661 |
Ford Motor Co. (Æ)(Ñ) | | 35,700 | | 465 |
Gannett Co., Inc. | | 23,100 | | 393 |
Hertz Global Holdings, Inc. (Æ)(Ñ) | | 17,300 | | 250 |
JC Penney Co., Inc. | | 18,300 | | 534 |
KB Home (Ñ) | | 58,800 | | 1,090 |
Kohl’s Corp. (Æ) | | 9,700 | | 533 |
Macy’s, Inc. | | 19,400 | | 450 |
Magna International, Inc. Class A (Æ) | | 6,300 | | 414 |
McDonald’s Corp. | | 14,820 | | 1,046 |
Newell Rubbermaid, Inc. (Ñ) | | 20,200 | | 345 |
Office Depot, Inc. (Æ) | | 106,300 | | 729 |
PetSmart, Inc. (Ñ) | | 5,200 | | 172 |
Phillips-Van Heusen Corp. | | 5,900 | | 372 |
Pulte Group, Inc. (Æ)(Ñ) | | 109,787 | | 1,437 |
Ryland Group, Inc. (Ñ) | | 55,900 | | 1,273 |
Stanley Black & Decker, Inc. | | 8,800 | | 547 |
TRW Automotive Holdings Corp. (Æ)(Ñ) | | 7,000 | | 225 |
Viacom, Inc. Class B (Æ) | | 12,800 | | 452 |
Wal-Mart Stores, Inc. | | 22,260 | | 1,194 |
Whirlpool Corp. (Ñ) | | 2,250 | | 245 |
Wyndham Worldwide Corp. | | 28,000 | | 751 |
Yum! Brands, Inc. | | 23,370 | | 991 |
| | | | |
| | | | 17,199 |
| | | | |
| | |
| Consumer Staples - 4.4% | | | | |
Corn Products International, Inc. | | 9,500 | | 342 |
CVS Caremark Corp. | | 15,020 | | 555 |
General Mills, Inc. | | 9,300 | | 662 |
JM Smucker Co. (The) | | 4,850 | | 296 |
Kimberly-Clark Corp. | | 25,190 | | 1,543 |
Kraft Foods, Inc. Class A | | 23,700 | | 702 |
Lorillard, Inc. | | 4,600 | | 361 |
PepsiCo, Inc. | | 11,000 | | 717 |
Procter & Gamble Co. (The) | | 13,400 | | 833 |
Reynolds American, Inc. (Ñ) | | 4,500 | | 240 |
Safeway, Inc. | | 22,600 | | 533 |
Tyson Foods, Inc. Class A | | 14,000 | | 274 |
| | | | |
| | | | 7,058 |
| | | | |
| | |
| Energy - 12.7% | | | | |
Alpha Natural Resources, Inc. (Æ) | | 8,800 | | 414 |
Arch Coal, Inc. | | 53,000 | | 1,431 |
BP PLC - ADR | | 4,700 | | 245 |
Chesapeake Energy Corp. | | 21,500 | | 512 |
Chevron Corp. | | 41,192 | | 3,355 |
ConocoPhillips | | 21,700 | | 1,284 |
Consol Energy, Inc. | | 16,760 | | 749 |
Devon Energy Corp. | | 24,620 | | 1,658 |
El Paso Corp. | | 39,000 | | 472 |
Exxon Mobil Corp. | | 26,700 | | 1,812 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Halliburton Co. | | 28,570 | | 876 |
Hess Corp. | | 13,700 | | 871 |
Marathon Oil Corp. | | 23,200 | | 746 |
Newfield Exploration Co. (Æ) | | 11,400 | | 663 |
Noble Corp. | | 14,300 | | 565 |
Occidental Petroleum Corp. | | 10,380 | | 920 |
Peabody Energy Corp. | | 28,300 | | 1,322 |
Royal Dutch Shell PLC - ADR (Ñ) | | 10,600 | | 665 |
Statoil ASA - ADR (Ñ) | | 24,600 | | 594 |
Sunoco, Inc. (Ñ) | | 9,000 | | 295 |
Whiting Petroleum Corp. (Æ)(Ñ) | | 8,950 | | 808 |
| | | | |
| | | | 20,257 |
| | | | |
| | |
| Financial Services - 25.4% | | | | |
Allstate Corp. (The) | | 18,900 | | 617 |
Ameriprise Financial, Inc. | | 20,400 | | 946 |
Assured Guaranty, Ltd. | | 9,200 | | 198 |
Bank of America Corp. | | 235,389 | | 4,197 |
Bank of New York Mellon Corp. (The) | | 63,480 | | 1,976 |
Boston Properties, Inc. (ö) | | 6,600 | | 521 |
Capital One Financial Corp. | | 16,400 | | 712 |
CB Richard Ellis Group, Inc. Class A (Æ) | | 10,400 | | 180 |
CIT Group, Inc. (Æ) | | 13,430 | | 545 |
Citigroup, Inc. (Æ) | | 468,936 | | 2,049 |
Comerica, Inc. | | 14,600 | | 613 |
Discover Financial Services | | 19,300 | | 298 |
Federated Investors, Inc. Class B (Ñ) | | 17,600 | | 425 |
Fifth Third Bancorp | | 16,300 | | 243 |
Franklin Resources, Inc. | | 4,530 | | 524 |
Genworth Financial, Inc. Class A (Æ) | | 37,268 | | 616 |
Hartford Financial Services Group, Inc. | | 12,100 | | 346 |
Hudson City Bancorp, Inc. | | 31,500 | | 419 |
Huntington Bancshares, Inc. (Ñ) | | 70,800 | | 479 |
JPMorgan Chase & Co. | | 97,460 | | 4,150 |
KeyCorp | | 130,000 | | 1,173 |
Marsh & McLennan Cos., Inc. | | 28,600 | | 693 |
Marshall & Ilsley Corp. | | 140,200 | | 1,276 |
Mastercard, Inc. Class A | | 1,860 | | 461 |
Mercury General Corp. (Ñ) | | 13,400 | | 603 |
MGIC Investment Corp. (Æ)(Ñ) | | 92,600 | | 966 |
Morgan Stanley | | 62,360 | | 1,885 |
Northern Trust Corp. | | 13,800 | | 759 |
People’s United Financial, Inc. | | 24,300 | | 377 |
Plum Creek Timber Co., Inc. (ö) | | 14,400 | | 573 |
PNC Financial Services Group, Inc. | | 16,100 | | 1,082 |
Prudential Financial, Inc. | | 8,400 | | 534 |
Regions Financial Corp. (Ñ) | | 130,900 | | 1,157 |
Simon Property Group, Inc. (ö) | | 5,250 | | 467 |
State Street Corp. | | 23,240 | | 1,011 |
SunTrust Banks, Inc. (Ñ) | | 71,400 | | 2,113 |
US Bancorp | | 34,820 | | 932 |
Valley National Bancorp | | 31,400 | | 510 |
Wells Fargo & Co. | | 63,010 | | 2,086 |
Wilmington Trust Corp. (Ñ) | | 16,900 | | 293 |
XL Capital, Ltd. Class A | | 18,600 | | 331 |
Zions Bancorporation (Ñ) | | 38,300 | | 1,100 |
| | | | |
| | | | 40,436 |
| | | | |
| | |
| Russell U.S. Value Fund | | 29 |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Health Care - 7.4% | | | | |
Abbott Laboratories | | 20,000 | | 1,023 |
Aetna, Inc. | | 8,700 | | 257 |
AmerisourceBergen Corp. Class A | | 12,600 | | 389 |
Amgen, Inc. (Æ) | | 31,540 | | 1,809 |
Baxter International, Inc. | | 24,640 | | 1,163 |
Becton Dickinson and Co. | | 6,390 | | 488 |
Biogen Idec, Inc. (Æ) | | 11,975 | | 638 |
Hologic, Inc. (Æ) | | 15,500 | | 277 |
Johnson & Johnson | | 24,590 | | 1,581 |
Life Technologies Corp. (Æ) | | 6,700 | | 367 |
Medtronic, Inc. | | 18,000 | | 786 |
Merck & Co., Inc. | | 13,400 | | 470 |
Shire PLC - ADR | | 12,390 | | 816 |
Teleflex, Inc. | | 6,400 | | 392 |
Thermo Fisher Scientific, Inc. (Æ) | | 11,760 | | 650 |
UnitedHealth Group, Inc. | | 16,000 | | 485 |
WellPoint, Inc. (Æ) | | 4,100 | | 221 |
| | | | |
| | | | 11,812 |
| | | | |
| | |
| Materials and Processing - 5.3% | | | | |
Air Products & Chemicals, Inc. | | 9,700 | | 745 |
Celanese Corp. Class A | | 15,600 | | 499 |
CF Industries Holdings, Inc. | | 3,525 | | 295 |
Cliffs Natural Resources, Inc. | | 7,950 | | 497 |
Eastman Chemical Co. | | 6,100 | | 408 |
Freeport-McMoRan Copper & Gold, Inc. Class B | | 7,300 | | 551 |
Nucor Corp. (Ñ) | | 13,900 | | 630 |
Praxair, Inc. | | 10,450 | | 875 |
Precision Castparts Corp. | | 9,980 | | 1,281 |
Reliance Steel & Aluminum Co. | | 8,400 | | 410 |
Sealed Air Corp. (Ñ) | | 30,100 | | 647 |
Teck Resources, Ltd. Class B | | 19,470 | | 764 |
Vulcan Materials Co. | | 16,000 | | 917 |
| | | | |
| | | | 8,519 |
| | | | |
| | |
| Producer Durables - 11.5% | | | | |
3M Co. | | 2,400 | | 213 |
Accenture PLC Class A | | 11,870 | | 518 |
Agilent Technologies, Inc. (Æ) | | 19,190 | | 696 |
Automatic Data Processing, Inc. | | 15,800 | | 685 |
Avery Dennison Corp. | | 9,200 | | 359 |
Canadian Pacific Railway, Ltd. | | 5,300 | | 312 |
Caterpillar, Inc. | | 7,200 | | 490 |
Cooper Industries PLC | | 14,800 | | 727 |
Cummins, Inc. | | 3,000 | | 217 |
Eaton Corp. | | 2,900 | | 224 |
General Dynamics Corp. | | 21,150 | | 1,615 |
General Electric Co. | | 129,800 | | 2,448 |
Honeywell International, Inc. | | 13,200 | | 627 |
ITT Corp. | | 4,300 | | 239 |
Lear Corp. (Æ) | | 7,300 | | 593 |
Lexmark International, Inc. Class A (Æ) | | 10,100 | | 374 |
Lockheed Martin Corp. | | 12,680 | | 1,076 |
Navistar International Corp. (Æ) | | 20,300 | | 981 |
Norfolk Southern Corp. | | 8,700 | | 516 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Pitney Bowes, Inc. (Ñ) | | 24,700 | | 627 |
Raytheon Co. | | 13,710 | | 799 |
Rockwell Automation, Inc. | | 7,300 | | 443 |
SPX Corp. | | 5,800 | | 405 |
Textron, Inc. (Ñ) | | 24,900 | | 569 |
Tidewater, Inc. (Ñ) | | 10,800 | | 579 |
United Parcel Service, Inc. Class B | | 11,400 | | 788 |
Waste Management, Inc. (Ñ) | | 18,800 | | 652 |
Xerox Corp. | | 53,900 | | 588 |
| | | | |
| | | | 18,360 |
| | | | |
| | |
| Technology - 11.5% | | | | |
Advanced Micro Devices, Inc. (Æ) | | 51,700 | | 468 |
Alcatel-Lucent - ADR (Æ) | | 158,000 | | 501 |
Apple, Inc. (Æ) | | 2,060 | | 538 |
Applied Materials, Inc. | | 53,000 | | 730 |
CA, Inc. | | 27,600 | | 630 |
Cisco Systems, Inc. (Æ) | | 56,240 | | 1,514 |
Computer Sciences Corp. (Æ) | | 12,280 | | 643 |
Dell, Inc. (Æ) | | 60,200 | | 974 |
Diebold, Inc. (Ñ) | | 11,200 | | 351 |
EMC Corp. (Æ) | | 10,690 | | 203 |
Google, Inc. Class A (Æ) | | 1,760 | | 925 |
Harris Corp. | | 7,000 | | 360 |
Hewlett-Packard Co. | | 24,670 | | 1,282 |
International Business Machines Corp. | | 11,400 | | 1,471 |
Linear Technology Corp. (Ñ) | | 27,400 | | 824 |
LSI Corp. (Æ) | | 37,700 | | 227 |
Micron Technology, Inc. (Æ)(Ñ) | | 67,300 | | 629 |
Microsoft Corp. | | 38,500 | | 1,176 |
Motorola, Inc. (Æ) | | 148,800 | | 1,052 |
National Semiconductor Corp. (Ñ) | | 51,100 | | 755 |
Nokia OYJ - ADR (Ñ) | | 29,300 | | 356 |
Oracle Corp. | | 50,480 | | 1,305 |
QUALCOMM, Inc. | | 5,760 | | 223 |
Seagate Technology (Æ) | | 25,000 | | 459 |
Symantec Corp. (Æ) | | 25,490 | | 428 |
Tyco Electronics, Ltd. | | 7,800 | | 251 |
| | | | |
| | | | 18,275 |
| | | | |
| | |
| Utilities - 6.3% | | | | |
Allegheny Energy, Inc. | | 6,100 | | 133 |
Alliant Energy Corp. | | 12,800 | | 438 |
American Electric Power Co., Inc. | | 22,900 | | 786 |
American Water Works Co., Inc. | | 25,100 | | 547 |
DTE Energy Co. (Ñ) | | 14,000 | | 674 |
Dynegy, Inc. Class A (Æ) | | 2,043 | | 3 |
Exelon Corp. | | 8,600 | | 375 |
FPL Group, Inc. | | 4,700 | | 245 |
Frontier Communications Corp. (Ñ) | | 52,000 | | 414 |
Great Plains Energy, Inc. (Ñ) | | 20,400 | | 394 |
MDU Resources Group, Inc. | | 18,500 | | 392 |
Mirant Corp. (Æ) | | 36,982 | | 431 |
Pepco Holdings, Inc. | | 21,200 | | 355 |
PPL Corp. | | 7,800 | | 193 |
Progress Energy, Inc. - CVO | | 1,300 | | — |
Questar Corp. | | 6,300 | | 302 |
| | |
| 30 | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| | | | | |
Qwest Communications International, Inc. (Ñ) | | 128,900 | | 674 | |
RRI Energy, Inc. (Æ)(Ñ) | | 335,400 | | 1,365 | |
Sprint Nextel Corp. (Æ) | | 293,500 | | 1,247 | |
Veolia Environnement - ADR (Ñ) | | 11,600 | | 362 | |
Verizon Communications, Inc. | | 22,200 | | 641 | |
| | | | | |
| | | | 9,971 | |
| | | | | |
| | |
Total Common Stocks
(cost $127,605) | | | | 151,887 | |
| | | | | |
| | |
| Warrants & Rights - 0.2% | | | | | |
Bank of America Corp. (Æ)
2018 Warrants | | 68 | | 258 | |
| | | | | |
| | |
Total Warrants & Rights
(cost $265) | | | | 258 | |
| | | | | |
| | |
| Short-Term Investments - 4.4% | | | | | |
Russell U.S. Cash Management Fund (£) | | 6,947,534 | | 6,948 | |
| | | | | |
| | |
Total Short-Term Investments
(cost $6,948) | | | | 6,948 | |
| | | | | |
| | |
| Other Securities - 16.1% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 14,423,895 | | 14,424 | |
State Street Securities Lending Quality
Trust (×) | | 11,183,543 | | 11,154 | |
| | | | | |
| | |
Total Other Securities
(cost $25,607) | | | | 25,578 | |
| | | | | |
| | |
Total Investments - 116.0%
(identified cost $160,425) | | | | 184,671 | |
| | |
Other Assets and Liabilities,
Net - (16.0%) | | | | (25,486 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 159,185 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Value Fund | | 31 |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Long Positions | | | | | | | | | | | |
S&P 500 E-Mini Index (CME) | | 90 | | USD | | 5,325 | | 06/10 | | (5 | ) |
S&P 500 Index (CME) | | 5 | | USD | | 1,479 | | 06/10 | | 53 | |
| | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 48 | |
| | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 32 | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 17,199 | | $ | — | | $ | — | | $ | 17,199 | | 10.8 | |
Consumer Staples | | | 7,058 | | | — | | | — | | | 7,058 | | 4.4 | |
Energy | | | 20,257 | | | — | | | — | | | 20,257 | | 12.7 | |
Financial Services | | | 40,436 | | | — | | | — | | | 40,436 | | 25.4 | |
Health Care | | | 11,812 | | | — | | | — | | | 11,812 | | 7.4 | |
Materials and Processing | | | 8,519 | | | — | | | — | | | 8,519 | | 5.3 | |
Producer Durables | | | 18,360 | | | — | | | — | | | 18,360 | | 11.5 | |
Technology | | | 18,275 | | | — | | | — | | | 18,275 | | 11.5 | |
Utilities | | | 9,971 | | | — | | | — | | | 9,971 | | 6.3 | |
Warrants & Rights | | | 258 | | | — | | | — | | | 258 | | 0.2 | |
Short-Term Investments | | | — | | | 6,948 | | | — | | | 6,948 | | 4.4 | |
Other Securities | | | — | | | 25,578 | | | — | | | 25,578 | | 16.1 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 152,145 | | | 32,526 | | | — | | | 184,671 | | 116.0 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (16.0 | ) |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | |
Futures Contracts | | | 48 | | | — | | | — | | | 48 | | — | * |
| | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | 48 | | | — | | | — | | | 48 | | | |
| | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 53 |
| | | |
| |
| Location: Statement of Assets and Liabilities - Liabilities | | | |
Daily variation margin on futures contracts* | | $ | 5 |
| | | |
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 616 |
| | | |
| |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 227 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Value Fund | | 33 |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,261.30 | | $ | 1,018.70 |
Expenses Paid During Period* | | $ | 6.90 | | $ | 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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,256.50 | | $ | 1,014.98 |
Expenses Paid During Period* | | $ | 11.08 | | $ | 9.89 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.98% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,261.40 | | $ | 1,019.29 |
Expenses Paid During Period* | | $ | 6.22 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,263.30 | | $ | 1,020.33 |
Expenses Paid During Period* | | $ | 5.05 | | $ | 4.51 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.90% (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). |
| | |
| 34 | | Russell U.S. Small & Mid Cap Fund |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,262.10 | | $ | 1,019.93 |
Expenses Paid During Period* | | $ | 5.50 | | $ | 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). |
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,263.80 | | $ | 1,020.83 |
Expenses Paid During Period* | | $ | 4.49 | | $ | 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). |
| | |
| Russell U.S. Small & Mid Cap Fund | | 35 |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 96.8% | | | | |
| Consumer Discretionary - 17.3% | | | | |
99 Cents Only Stores (Æ)(Ñ) | | 158,300 | | 2,457 |
Abercrombie & Fitch Co. Class A | | 34,600 | | 1,513 |
ABM Industries, Inc. | | 126,715 | | 2,723 |
Aeropostale, Inc. (Æ) | | 137,955 | | 4,006 |
America’s Car-Mart, Inc. (Æ)(Ñ) | | 66,500 | | 1,684 |
American Greetings Corp. Class A | | 64,300 | | 1,579 |
Asbury Automotive Group, Inc. (Æ) | | 116,287 | | 1,808 |
Bebe Stores, Inc. | | 196,495 | | 1,619 |
BJ’s Restaurants, Inc. (Æ)(Ñ) | | 72,379 | | 1,747 |
BJ’s Wholesale Club, Inc. (Æ)(Ñ) | | 97,047 | | 3,715 |
Blyth, Inc. (Ñ) | | 5,000 | | 288 |
Bob Evans Farms, Inc. | | 29,200 | | 903 |
Bridgepoint Education, Inc. (Æ) | | 152,389 | | 3,918 |
Brown Shoe Co., Inc. | | 30,000 | | 564 |
Buckle, Inc. (The) (Ñ) | | 65,500 | | 2,370 |
Build-A-Bear Workshop, Inc. Class A (Æ) | | 24,800 | | 237 |
Burger King Holdings, Inc. | | 71,000 | | 1,498 |
Career Education Corp. (Æ) | | 18,300 | | 536 |
Carter’s, Inc. (Æ) | | 66,014 | | 2,127 |
Central European Distribution Corp. (Æ)(Ñ) | | 39,939 | | 1,384 |
Chico’s FAS, Inc. (Ñ) | | 280,600 | | 4,178 |
Chipotle Mexican Grill, Inc. Class A (Æ) | | 31,188 | | 4,208 |
Christopher & Banks Corp. (Ñ) | | 267,093 | | 2,615 |
Churchill Downs, Inc. | | 41,341 | | 1,585 |
Columbia Sportswear Co. (Ñ) | | 54,378 | | 3,020 |
Core-Mark Holding Co., Inc. (Æ) | | 6,100 | | 186 |
Corinthian Colleges, Inc. (Æ)(Ñ) | | 50,200 | | 784 |
Crocs, Inc. (Æ) | | 240,693 | | 2,325 |
Ctrip.com International, Ltd. - ADR (Æ) | | 62,247 | | 2,273 |
Darden Restaurants, Inc. | | 120,500 | | 5,392 |
DeVry, Inc. | | 25,555 | | 1,594 |
DG FastChannel, Inc. (Æ) | | 119,179 | | 4,193 |
Dick’s Sporting Goods, Inc. (Æ)(Ñ) | | 155,129 | | 4,516 |
Dillard’s, Inc. Class A (Ñ) | | 162,869 | | 4,573 |
Dollar Tree, Inc. (Æ) | | 68,400 | | 4,153 |
Domino’s Pizza, Inc. (Æ) | | 167,800 | | 2,586 |
DSW, Inc. Class A (Æ) | | 74,109 | | 2,238 |
Eastman Kodak Co. (Æ) | | 130,300 | | 797 |
Elizabeth Arden, Inc. (Æ) | | 17,334 | | 316 |
Expedia, Inc. | | 164,503 | | 3,884 |
Fastenal Co. (Ñ) | | 85,902 | | 4,698 |
Finish Line, Inc. (The) Class A | | 259,559 | | 4,182 |
Foot Locker, Inc. | | 89,798 | | 1,378 |
Fossil, Inc. (Æ)(Ñ) | | 57,400 | | 2,233 |
Fred’s, Inc. Class A | | 256,427 | | 3,562 |
Gentex Corp. | | 134,212 | | 2,884 |
Grand Canyon Education, Inc. (Æ)(Ñ) | | 68,371 | | 1,653 |
Group 1 Automotive, Inc. (Æ)(Ñ) | | 95,140 | | 2,954 |
Guess?, Inc. | | 119,511 | | 5,482 |
Gymboree Corp. (Æ)(Ñ) | | 58,454 | | 2,872 |
Harman International Industries, Inc. (Æ) | | 86,147 | | 3,401 |
Harte-Hanks, Inc. | | 3,100 | | 45 |
Hasbro, Inc. | | 54,000 | | 2,071 |
Haverty Furniture Cos., Inc. (Ñ) | | 3,300 | | 54 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
hhgregg, Inc. (Æ)(Ñ) | | 149,519 | | 4,281 |
Hillenbrand, Inc. | | 125,200 | | 3,077 |
IAC/InterActiveCorp (Æ) | | 82,981 | | 1,860 |
Insight Enterprises, Inc. (Æ)(Ñ) | | 6,900 | | 104 |
Inter Parfums, Inc. (Ñ) | | 5,198 | | 90 |
International Speedway Corp. Class A | | 11,400 | | 348 |
Jakks Pacific, Inc. (Æ) | | 32,700 | | 500 |
Jarden Corp. | | 33,700 | | 1,082 |
Jo-Ann Stores, Inc. (Æ) | | 60,700 | | 2,678 |
John Wiley & Sons, Inc. Class A (Ñ) | | 36,000 | | 1,522 |
Jones Apparel Group, Inc. (Ñ) | | 139,800 | | 3,042 |
JOS A Bank Clothiers, Inc. (Æ)(Ñ) | | 51,530 | | 3,136 |
Kenneth Cole Productions, Inc. Class A (Æ) | | 184,364 | | 2,297 |
Leapfrog Enterprises, Inc. Class A (Æ)(Ñ) | | 35,035 | | 240 |
Live Nation Entertainment, Inc. (Æ)(Ñ) | | 109,540 | | 1,719 |
Liz Claiborne, Inc. (Æ)(Ñ) | | 253,100 | | 2,212 |
LKQ Corp. (Æ) | | 233,085 | | 4,909 |
Lululemon Athletica, Inc. Class W (Æ)(Ñ) | | 55,013 | | 2,070 |
MarineMax, Inc. (Æ)(Ñ) | | 99,146 | | 1,105 |
Men’s Wearhouse, Inc. (The) | | 81,900 | | 1,935 |
Meredith Corp. | | 90,600 | | 3,255 |
MGM Mirage (Æ)(Ñ) | | 215,939 | | 3,431 |
Movado Group, Inc. (Æ)(Ñ) | | 18,320 | | 227 |
MSC Industrial Direct Co. Class A | | 46,403 | | 2,529 |
NetFlix, Inc. (Æ)(Ñ) | | 29,455 | | 2,909 |
NVR, Inc. (Æ) | | 1,985 | | 1,425 |
OfficeMax, Inc. (Æ)(Ñ) | | 189,544 | | 3,601 |
Orient-Express Hotels, Ltd. Class A (Æ)(Ñ) | | 277,996 | | 3,795 |
Pacific Sunwear of California, Inc. (Æ)(Ñ) | | 314,347 | | 1,591 |
Papa John’s International, Inc. (Æ) | | 22,700 | | 622 |
PC Connection, Inc. (Æ) | | 16,900 | | 116 |
Phillips-Van Heusen Corp. | | 82,000 | | 5,167 |
Pricesmart, Inc. | | 53,700 | | 1,336 |
RC2 Corp. (Æ) | | 15,600 | | 287 |
Red Robin Gourmet Burgers, Inc. (Æ)(Ñ) | | 15,800 | | 386 |
Regis Corp. (Ñ) | | 60,117 | | 1,149 |
Rent-A-Center, Inc. Class A (Æ) | | 269,500 | | 6,959 |
Ross Stores, Inc. (Ñ) | | 59,700 | | 3,343 |
Scholastic Corp. (Ñ) | | 35,400 | | 956 |
Service Corp. International | | 138,500 | | 1,244 |
Shoe Carnival, Inc. (Æ)(Ñ) | | 9,200 | | 254 |
Skechers U.S.A., Inc. Class A (Æ)(Ñ) | | 64,900 | | 2,489 |
Sonic Automotive, Inc. Class A (Æ) | | 27,200 | | 291 |
Sotheby’s Class A (Ñ) | | 180,315 | | 6,023 |
Stage Stores, Inc. | | 201,700 | | 3,076 |
Stanley Black & Decker, Inc. | | 23,700 | | 1,473 |
Steven Madden, Ltd. (Æ)(Ñ) | | 99,085 | | 5,743 |
Stewart Enterprises, Inc. Class A | | 466,800 | | 3,165 |
Strayer Education, Inc. (Ñ) | | 17,130 | | 4,165 |
Superior Industries International, Inc. (Ñ) | | 127,054 | | 2,142 |
Tech Data Corp. (Æ) | | 99,400 | | 4,264 |
Tempur-Pedic International, Inc. (Æ)(Ñ) | | 99,116 | | 3,340 |
Thor Industries, Inc. | | 62,086 | | 2,217 |
Timberland Co. Class A (Æ)(Ñ) | | 40,800 | | 877 |
True Religion Apparel, Inc. (Æ) | | 55,286 | | 1,728 |
United Stationers, Inc. (Æ) | | 6,770 | | 414 |
| | |
| 36 | | Russell U.S. Small & Mid Cap Fund |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Urban Outfitters, Inc. (Æ) | | 130,915 | | 4,911 |
VF Corp. | | 25,500 | | 2,204 |
VistaPrint NV (Æ)(Ñ) | | 23,765 | | 1,226 |
Warnaco Group, Inc. (The) (Æ)(Ñ) | | 84,350 | | 4,035 |
Washington Post Co. (The) Class B | | 5,605 | | 2,843 |
Wendy’s/Arby’s Group, Inc. | | 488,900 | | 2,596 |
WESCO International, Inc. (Æ)(Ñ) | | 78,300 | | 3,181 |
Whirlpool Corp. (Ñ) | | 22,000 | | 2,395 |
WMS Industries, Inc. (Æ)(Ñ) | | 31,744 | | 1,588 |
Wolverine World Wide, Inc. (Ñ) | | 84,700 | | 2,593 |
Wyndham Worldwide Corp. | | 23,800 | | 638 |
| | | | |
| | | | 281,967 |
| | | | |
| | |
| Consumer Staples - 1.9% | | | | |
Alliance One International, Inc. (Æ) | | 156,195 | | 795 |
Andersons, Inc. (The) | | 153,271 | | 5,539 |
Cal-Maine Foods, Inc. | | 32,986 | | 1,101 |
Chiquita Brands International, Inc. (Æ)(Ñ) | | 56,900 | | 856 |
Constellation Brands, Inc. Class A (Æ) | | 94,900 | | 1,734 |
Corn Products International, Inc. | | 2,200 | | 79 |
Del Monte Foods Co. | | 312,600 | | 4,670 |
Fresh Del Monte Produce, Inc. (Æ)(Ñ) | | 112,200 | | 2,342 |
Green Mountain Coffee Roasters, Inc. (Æ) | | 37,245 | | 2,706 |
Nash Finch Co. | | 19,700 | | 690 |
Pantry, Inc. (The) (Æ) | | 26,700 | | 422 |
Ralcorp Holdings, Inc. (Æ) | | 49,263 | | 3,278 |
Seneca Foods Corp. Class A (Æ) | | 5,292 | | 174 |
Spartan Stores, Inc. | | 22,500 | | 340 |
SUPERVALU, Inc. (Ñ) | | 30,800 | | 459 |
TreeHouse Foods, Inc. (Æ)(Ñ) | | 62,800 | | 2,656 |
Tyson Foods, Inc. Class A | | 166,752 | | 3,267 |
Winn-Dixie Stores, Inc. (Æ)(Ñ) | | 17,400 | | 219 |
| | | | |
| | | | 31,327 |
| | | | |
| | |
| Energy - 6.3% | | | | |
Alpha Natural Resources, Inc. (Æ) | | 87,808 | | 4,134 |
Baker Hughes, Inc. | | 42,496 | | 2,115 |
Berry Petroleum Co. Class A | | 129,000 | | 4,176 |
Bill Barrett Corp. (Æ)(Ñ) | | 49,473 | | 1,686 |
Boardwalk Pipeline Partners, LP | | 65,488 | | 1,897 |
Bolt Technology Corp. (Æ) | | 107,553 | | 1,191 |
Cal Dive International, Inc. (Æ) | | 273,704 | | 1,795 |
Carrizo Oil & Gas, Inc. (Æ)(Ñ) | | 67,091 | | 1,472 |
Cie Generale de Geophysique-Veritas - ADR (Æ)(Ñ) | | 69,690 | | 2,095 |
Comstock Resources, Inc. (Æ) | | 44,500 | | 1,427 |
Continental Resources, Inc. (Æ)(Ñ) | | 35,092 | | 1,725 |
Core Laboratories NV (Ñ) | | 25,607 | | 3,838 |
CVR Energy, Inc. (Æ)(Ñ) | | 14,000 | | 119 |
Dawson Geophysical Co. (Æ)(Ñ) | | 8,403 | | 246 |
El Paso Pipeline Partners, LP | | 86,800 | | 2,346 |
Enbridge Energy Partners, LP Class A | | 39,770 | | 2,039 |
Enterprise Products Partners, LP | | 61,000 | | 2,163 |
EXCO Resources, Inc. | | 117,600 | | 2,181 |
Exterran Holdings, Inc. (Æ)(Ñ) | | 93,482 | | 2,725 |
Frontier Oil Corp. | | 280,800 | | 4,268 |
Green Plains Renewable Energy, Inc. (Æ) | | 52,500 | | 721 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Gulf Island Fabrication, Inc. | | 16,500 | | 395 |
Helix Energy Solutions Group, Inc. (Æ)(Ñ) | | 163,872 | | 2,389 |
Hercules Offshore, Inc. (Æ) | | 82,100 | | 325 |
Lufkin Industries, Inc. | | 5,754 | | 490 |
Matrix Service Co. (Æ) | | 22,989 | | 244 |
Newfield Exploration Co. (Æ) | | 35,000 | | 2,037 |
Noble Corp. | | 83,750 | | 3,307 |
Oil States International, Inc. (Æ) | | 106,400 | | 5,140 |
Parker Drilling Co. (Æ) | | 13,900 | | 77 |
Patterson-UTI Energy, Inc. (Ñ) | | 285,892 | | 4,371 |
Penn Virginia Corp. | | 78,740 | | 2,009 |
Petroleum Development Corp. (Æ) | | 112,301 | | 2,629 |
Petroquest Energy, Inc. (Æ)(Ñ) | | 23,500 | | 139 |
Pioneer Drilling Co. (Æ) | | 17,200 | | 126 |
Precision Drilling Trust (Æ) | | 230,815 | | 1,759 |
Rosetta Resources, Inc. (Æ)(Ñ) | | 191,171 | | 4,760 |
Rowan Cos., Inc. (Æ)(Ñ) | | 114,151 | | 3,402 |
RPC, Inc. | | 153,666 | | 2,098 |
St. Mary Land & Exploration Co. | | 36,650 | | 1,475 |
Sunoco, Inc. | | 68,367 | | 2,241 |
Superior Energy Services, Inc. (Æ) | | 79,450 | | 2,150 |
Swift Energy Co. (Æ)(Ñ) | | 25,600 | | 926 |
Tetra Technologies, Inc. (Æ) | | 50,200 | | 617 |
Unit Corp. (Æ)(Ñ) | | 88,728 | | 4,239 |
USEC, Inc. (Æ) | | 130,100 | | 781 |
W&T Offshore, Inc. | | 307,271 | | 2,910 |
Western Refining, Inc. (Æ)(Ñ) | | 69,200 | | 371 |
Whiting Petroleum Corp. (Æ) | | 66,125 | | 5,973 |
XTO Energy, Inc. | | 40,658 | | 1,932 |
| | | | |
| | | | 103,671 |
| | | | |
| | |
| Financial Services - 16.6% | | | | |
Advance America Cash Advance Centers, Inc. | | 272,800 | | 1,560 |
Affiliated Managers Group, Inc. (Æ) | | 144,094 | | 12,130 |
Alliance Data Systems Corp. (Æ) | | 53,727 | | 4,033 |
Allied World Assurance Co. Holdings, Ltd. | | 36,500 | | 1,590 |
American Equity Investment Life Holding Co. | | 220,451 | | 2,319 |
American Financial Group, Inc. | | 58,000 | | 1,707 |
American Safety Insurance Holdings, Ltd. (Æ)(Ñ) | | 1,000 | | 16 |
Ameriprise Financial, Inc. | | 66,438 | | 3,080 |
Annaly Capital Management, Inc. (ö) | | 116,512 | | 1,975 |
Anworth Mortgage Asset Corp. (ö) | | 191,000 | | 1,282 |
Apollo Investment Corp. | | 91,500 | | 1,113 |
Arch Capital Group, Ltd. (Æ) | | 44,442 | | 3,359 |
Ares Capital Corp. (Ñ) | | 386,915 | | 6,136 |
Argo Group International Holdings, Ltd. | | 23,200 | | 765 |
Artio Global Investors, Inc. | | 147,997 | | 3,386 |
Aspen Insurance Holdings, Ltd. | | 69,700 | | 1,881 |
Assurant, Inc. | | 9,281 | | 338 |
Axis Capital Holdings, Ltd. | | 48,200 | | 1,502 |
Bancfirst Corp. (Ñ) | | 1,600 | | 71 |
Banco Latinoamericano de Comercio Exterior SA Class E | | 24,400 | | 346 |
BancorpSouth, Inc. | | 142,200 | | 3,148 |
| | |
| Russell U.S. Small & Mid Cap Fund | | 37 |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
BGC Partners, Inc. Class A | | 43,700 | | 285 |
BioMed Realty Trust, Inc. (ö)(Ñ) | | 139,161 | | 2,576 |
BOK Financial Corp. | | 100,700 | | 5,481 |
Boston Private Financial Holdings, Inc. (Ñ) | | 313,502 | | 2,486 |
Boston Properties, Inc. (ö) | | 15,400 | | 1,214 |
Brandywine Realty Trust (ö) | | 29,300 | | 373 |
BRE Properties, Inc. Class A (ö) | | 8,200 | | 342 |
Brookline Bancorp, Inc. | | 131,727 | | 1,448 |
Calamos Asset Management, Inc. Class A | | 31,000 | | 386 |
Camden Property Trust (ö) | | 25,709 | | 1,245 |
CapLease, Inc. (ö)(Ñ) | | 9,400 | | 55 |
Capstead Mortgage Corp. (ö)(Ñ) | | 68,726 | | 778 |
Cash America International, Inc. (Ñ) | | 28,900 | | 1,071 |
Chimera Investment Corp. (ö) | | 322,000 | | 1,311 |
City National Corp. | | 26,400 | | 1,644 |
CNA Surety Corp. (Æ) | | 116,720 | | 1,957 |
Cogdell Spencer, Inc. (ö) | | 275,700 | | 2,090 |
Colonial Properties Trust (ö)(Ñ) | | 72,200 | | 1,139 |
Commerce Bancshares, Inc. | | 9,700 | | 402 |
Community Trust Bancorp, Inc. (Ñ) | | 8,000 | | 240 |
Conseco, Inc. (Æ) | | 99,400 | | 586 |
CVB Financial Corp. | | 188,022 | | 2,070 |
Cybersource Corp. (Æ)(Ñ) | | 110,409 | | 2,835 |
Cypress Sharpridge Investments, Inc. (ö) | | 1,500 | | 19 |
Delphi Financial Group, Inc. Class A | | 97,200 | | 2,673 |
DiamondRock Hospitality Co. (ö)(Ñ) | | 370,127 | | 4,068 |
Dime Community Bancshares | | 78,800 | | 1,005 |
Duff & Phelps Corp. Class A | | 254,235 | | 3,992 |
DuPont Fabros Technology, Inc. (ö) | | 31,511 | | 699 |
Endurance Specialty Holdings, Ltd. | | 43,200 | | 1,592 |
Equifax, Inc. | | 53,002 | | 1,781 |
Equity One, Inc. (ö) | | 70,200 | | 1,363 |
Evercore Partners, Inc. Class A (Ñ) | | 6,100 | | 219 |
Extra Space Storage, Inc. (ö) | | 49,600 | | 745 |
Ezcorp, Inc. Class A (Æ)(Ñ) | | 163,818 | | 3,393 |
Factset Research Systems, Inc. | | 54,157 | | 4,074 |
FBL Financial Group, Inc. Class A | | 7,400 | | 191 |
FBR Capital Markets Corp. (Æ) | | 29,916 | | 142 |
FelCor Lodging Trust, Inc. (Æ)(ö) | | 30,600 | | 248 |
First Cash Financial Services, Inc. (Æ) | | 59,900 | | 1,321 |
First Mercury Financial Corp. | | 7,700 | | 101 |
First Niagara Financial Group, Inc. | | 241,700 | | 3,360 |
First Potomac Realty Trust (ö) | | 25,900 | | 420 |
Flushing Financial Corp. (Ñ) | | 13,100 | | 178 |
Franklin Street Properties Corp. (ö) | | 228,485 | | 3,368 |
GAMCO Investors, Inc. Class A (Ñ) | | 1,200 | | 55 |
Glacier Bancorp, Inc. | | 169,964 | | 3,143 |
Global Payments, Inc. | | 47,305 | | 2,025 |
Greenhill & Co., Inc. | | 38,120 | | 3,350 |
Hancock Holding Co. | | 103,471 | | 4,230 |
Hercules Technology Growth Capital, Inc. | | 22,000 | | 238 |
Hersha Hospitality Trust (ö) | | 284,100 | | 1,639 |
Horace Mann Educators Corp. | | 143,300 | | 2,466 |
Hospitality Properties Trust (ö) | | 49,400 | | 1,309 |
HRPT Properties Trust (ö) | | 233,313 | | 1,829 |
Huntington Bancshares, Inc. | | 299,300 | | 2,026 |
Iberiabank Corp. (Ñ) | | 81,800 | | 5,042 |
Independent Bank Corp. | | 48,400 | | 1,256 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Infinity Property & Casualty Corp. | | 5,600 | | 258 |
IntercontinentalExchange, Inc. (Æ) | | 27,146 | | 3,166 |
International Bancshares Corp. | | 65,800 | | 1,590 |
Investment Technology Group, Inc. (Æ) | | 7,700 | | 134 |
Janus Capital Group, Inc. | | 14,500 | | 204 |
Knight Capital Group, Inc. Class A (Æ)(Ñ) | | 275,207 | | 4,279 |
LaSalle Hotel Properties (ö)(Ñ) | | 140,417 | | 3,700 |
Lazard, Ltd. Class A | | 123,050 | | 4,757 |
Lexington Realty Trust (ö)(Ñ) | | 105,818 | | 749 |
Mack-Cali Realty Corp. (ö) | | 44,500 | | 1,529 |
MarketAxess Holdings, Inc. | | 104,655 | | 1,645 |
Meadowbrook Insurance Group, Inc. | | 12,300 | | 97 |
Medical Properties Trust, Inc. (ö) | | 599,016 | | 6,020 |
MFA Financial, Inc. (ö)(Ñ) | | 254,400 | | 1,809 |
Montpelier Re Holdings, Ltd. (Ñ) | | 49,300 | | 818 |
MSCI, Inc. Class A (Æ) | | 117,899 | | 4,085 |
National Financial Partners Corp. (Æ) | | 16,632 | | 256 |
NBT Bancorp, Inc. | | 30,903 | | 756 |
Nelnet, Inc. Class A (Ñ) | | 58,400 | | 1,166 |
NewAlliance Bancshares, Inc. | | 222,700 | | 2,902 |
Old National Bancorp | | 311,300 | | 4,175 |
Omega Healthcare Investors, Inc. (ö) | | 92,000 | | 1,842 |
OneBeacon Insurance Group, Ltd. Class A | | 18,444 | | 299 |
Oriental Financial Group, Inc. (Ñ) | | 46,035 | | 770 |
Park National Corp. | | 15,821 | | 1,084 |
Parkway Properties, Inc. (ö) | | 29,700 | | 585 |
PartnerRe, Ltd. - ADR | | 31,300 | | 2,428 |
PennantPark Investment Corp. | | 330,181 | | 3,612 |
Piper Jaffray Cos. (Æ)(Ñ) | | 70,512 | | 2,775 |
Platinum Underwriters Holdings, Ltd. (Ñ) | | 85,215 | | 3,171 |
Post Properties, Inc. (ö) | | 43,502 | | 1,121 |
Presidential Life Corp. | | 2,500 | | 29 |
PrivateBancorp, Inc. Class A (Ñ) | | 162,530 | | 2,327 |
Prosperity Bancshares, Inc. | | 65,500 | | 2,569 |
Protective Life Corp. | | 69,800 | | 1,680 |
Provident Financial Services, Inc. | | 74,020 | | 976 |
Provident New York Bancorp (Ñ) | | 3,900 | | 40 |
PS Business Parks, Inc. (ö) | | 2,800 | | 168 |
Raymond James Financial, Inc. (Ñ) | | 107,038 | | 3,280 |
RenaissanceRe Holdings, Ltd. | | 12,800 | | 716 |
Renasant Corp. | | 13,100 | | 217 |
Resource Capital Corp. (ö)(Ñ) | | 377,920 | | 2,687 |
Selective Insurance Group, Inc. | | 124,577 | | 2,082 |
Signature Bank NY (Æ) | | 53,000 | | 2,140 |
Simmons First National Corp. Class A | | 900 | | 25 |
SL Green Realty Corp. (ö) | | 36,500 | | 2,269 |
Southside Bancshares, Inc. | | 3,924 | | 85 |
Sovran Self Storage, Inc. (ö) | | 62,241 | | 2,296 |
StanCorp Financial Group, Inc. | | 32,400 | | 1,457 |
StellarOne Corp. (Ñ) | | 204,757 | | 3,053 |
Sterling Bancorp (Ñ) | | 193 | | 2 |
Sterling Bancshares, Inc. | | 591,920 | | 3,481 |
Susquehanna Bancshares, Inc. (Ñ) | | 55,200 | | 602 |
SVB Financial Group (Æ)(Ñ) | | 65,749 | | 3,237 |
SWS Group, Inc. | | 80,500 | | 891 |
Texas Capital Bancshares, Inc. (Æ)(Ñ) | | 129,600 | | 2,579 |
Textainer Group Holdings, Ltd. (Ñ) | | 69,078 | | 1,586 |
TICC Capital Corp. (Ñ) | | 10,000 | | 71 |
| | |
| 38 | | Russell U.S. Small & Mid Cap Fund |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Transatlantic Holdings, Inc. | | 22,200 | | 1,104 |
Trustmark Corp. | | 126,800 | | 3,104 |
U-Store-It Trust (ö) | | 31,100 | | 268 |
Umpqua Holdings Corp. (Ñ) | | 112,300 | | 1,678 |
Union First Market Bankshares Corp. (Ñ) | | 4,664 | | 78 |
United Financial Bancorp, Inc. | | 9,100 | | 127 |
Unitrin, Inc. | | 4,218 | | 123 |
Unum Group | | 91,484 | | 2,239 |
Valley National Bancorp | | 40,100 | | 651 |
Waddell & Reed Financial, Inc. Class A | | 69,915 | | 2,595 |
Webster Financial Corp. (Ñ) | | 46,500 | | 963 |
Wesco Financial Corp. | | 5,225 | | 1,981 |
Western Alliance Bancorp (Æ) | | 19,600 | | 171 |
White Mountains Insurance Group, Ltd. | | 2,029 | | 697 |
Whitney Holding Corp. (Ñ) | | 186,339 | | 2,553 |
Willis Group Holdings PLC | | 60,000 | | 2,067 |
Wilshire Bancorp, Inc. (Ñ) | | 12,036 | | 131 |
Wintrust Financial Corp. | | 12,900 | | 481 |
| | | | |
| | | | 270,649 |
| | | | |
| | |
| Health Care - 10.9% | | | | |
Affymetrix, Inc. (Æ)(Ñ) | | 47,200 | | 328 |
Albany Molecular Research, Inc. (Æ) | | 264,118 | | 2,113 |
Alexion Pharmaceuticals, Inc. (Æ) | | 52,636 | | 2,889 |
Allscripts-Misys Healthcare Solutions, Inc. (Æ)(Ñ) | | 125,470 | | 2,531 |
Amedisys, Inc. (Æ) | | 149,433 | | 8,604 |
Analogic Corp. | | 111,177 | | 5,316 |
Angiodynamics, Inc. (Æ) | | 15,300 | | 245 |
Brookdale Senior Living, Inc. (Æ)(Ñ) | | 191,364 | | 4,114 |
Catalyst Health Solutions, Inc. (Æ)(Ñ) | | 49,945 | | 2,113 |
Centene Corp. (Æ) | | 60,500 | | 1,385 |
Cephalon, Inc. (Æ)(Ñ) | | 28,000 | | 1,798 |
Cerner Corp. (Æ)(Ñ) | | 28,800 | | 2,445 |
Cigna Corp. | | 30,975 | | 993 |
Conmed Corp. (Æ) | | 87,957 | | 1,956 |
Coventry Health Care, Inc. (Æ) | | 118,989 | | 2,825 |
Cynosure, Inc. Class A (Æ) | | 150,206 | | 1,893 |
Endo Pharmaceuticals Holdings, Inc. (Æ) | | 87,000 | | 1,905 |
Genoptix, Inc. (Æ)(Ñ) | | 56,047 | | 2,168 |
Gentiva Health Services, Inc. (Æ) | | 67,546 | | 1,937 |
Greatbatch, Inc. (Æ) | | 92,314 | | 2,062 |
Harvard Bioscience, Inc. (Æ)(Ñ) | | 418,972 | | 1,751 |
Health Management Associates, Inc. Class A (Æ) | | 292,880 | | 2,730 |
Health Net, Inc. (Æ) | | 85,200 | | 1,876 |
Healthsouth Corp. (Æ)(Ñ) | | 112,702 | | 2,306 |
Healthspring, Inc. (Æ) | | 250,715 | | 4,413 |
Hill-Rom Holdings, Inc. | | 33,700 | | 1,069 |
HMS Holdings Corp. (Æ) | | 113,202 | | 6,056 |
Humana, Inc. (Æ) | | 66,500 | | 3,040 |
Icon PLC - ADR (Æ) | | 215,289 | | 6,280 |
IDEXX Laboratories, Inc. (Æ)(Ñ) | | 52,393 | | 3,465 |
Illumina, Inc. (Æ)(Ñ) | | 191,152 | | 8,004 |
Impax Laboratories, Inc. (Æ) | | 54,300 | | 983 |
Invacare Corp. | | 7,400 | | 196 |
Inverness Medical Innovations, Inc. (Æ)(Ñ) | | 59,338 | | 2,360 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Kindred Healthcare, Inc. (Æ) | | 86,274 | | 1,539 |
King Pharmaceuticals, Inc. (Æ) | | 160,400 | | 1,572 |
LHC Group, Inc. (Æ)(Ñ) | | 50,600 | | 1,725 |
Life Technologies Corp. (Æ) | | 67,462 | | 3,691 |
LifePoint Hospitals, Inc. (Æ) | | 25,100 | | 958 |
Magellan Health Services, Inc. (Æ) | | 31,000 | | 1,308 |
Medicines Co. (The) (Æ) | | 43,873 | | 322 |
Mednax, Inc. (Æ) | | 40,604 | | 2,231 |
Meridian Bioscience, Inc. | | 181,600 | | 3,630 |
Molina Healthcare, Inc. (Æ)(Ñ) | | 40,300 | | 1,176 |
Mylan, Inc. (Æ)(Ñ) | | 151,491 | | 3,337 |
Nabi Biopharmaceuticals (Æ) | | 17,100 | | 96 |
NuVasive, Inc. (Æ)(Ñ) | | 115,751 | | 4,815 |
Odyssey HealthCare, Inc. (Æ) | | 155,800 | | 3,245 |
Omnicare, Inc. | | 94,150 | | 2,616 |
OSI Systems, Inc. (Æ)(Ñ) | | 81,779 | | 2,130 |
Par Pharmaceutical Cos., Inc. (Æ) | | 162,400 | | 4,408 |
Patterson Cos., Inc. (Ñ) | | 135,693 | | 4,341 |
PerkinElmer, Inc. | | 240,866 | | 6,034 |
Quality Systems, Inc. (Ñ) | | 29,494 | | 1,888 |
RehabCare Group, Inc. (Æ)(Ñ) | | 121,790 | | 3,473 |
Salix Pharmaceuticals, Ltd. (Æ)(Ñ) | | 111,495 | | 4,482 |
Skilled Healthcare Group, Inc. Class A (Æ)(Ñ) | | 22,500 | | 151 |
Sun Healthcare Group, Inc. (Æ)(Ñ) | | 53,100 | | 475 |
SXC Health Solutions Corp. (Æ) | | 105,690 | | 7,367 |
Symmetry Medical, Inc. (Æ) | | 218,294 | | 2,523 |
Techne Corp. | | 40,734 | | 2,699 |
Teleflex, Inc. | | 18,100 | | 1,110 |
TomoTherapy, Inc. (Æ) | | 22,900 | | 89 |
Universal American Corp. (Æ) | | 45,900 | | 705 |
Universal Health Services, Inc. Class B | | 41,400 | | 1,537 |
Viropharma, Inc. (Æ) | | 172,000 | | 2,188 |
Vital Images, Inc. (Æ) | | 1,000 | | 16 |
Watson Pharmaceuticals, Inc. Class B (Æ) | | 96,500 | | 4,132 |
West Pharmaceutical Services, Inc. | | 47,200 | | 1,975 |
| | | | |
| | | | 178,133 |
| | | | |
| | |
| Materials and Processing - 6.9% | | | | |
A Schulman, Inc. | | 94,500 | | 2,458 |
Agrium, Inc. | | 29,800 | | 1,860 |
AK Steel Holding Corp. | | 28,880 | | 484 |
Albemarle Corp. | | 63,500 | | 2,899 |
Allegheny Technologies, Inc. (Ñ) | | 37,736 | | 2,018 |
Apogee Enterprises, Inc. | | 96,100 | | 1,320 |
Ashland, Inc. | | 74,400 | | 4,431 |
Belden, Inc. | | 77,357 | | 2,124 |
Brady Corp. Class A | | 87,100 | | 2,993 |
Cabot Corp. | | 111,784 | | 3,637 |
CF Industries Holdings, Inc. | | 20,500 | | 1,715 |
Clarcor, Inc. | | 126,000 | | 4,765 |
Comfort Systems USA, Inc. | | 80,200 | | 1,129 |
Commercial Metals Co. | | 382,410 | | 5,690 |
Cytec Industries, Inc. | | 132,033 | | 6,346 |
Eagle Materials, Inc. | | 53,900 | | 1,718 |
Ferro Corp. (Æ)(Ñ) | | 269,048 | | 2,938 |
Fushi Copperweld, Inc. (Æ) | | 151,589 | | 1,677 |
| | |
| Russell U.S. Small & Mid Cap Fund | | 39 |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
General Cable Corp. (Æ) | | 54,500 | | 1,557 |
Gerdau Ameristeel Corp. (Æ)(Ñ) | | 254,500 | | 1,909 |
Gibraltar Industries, Inc. (Æ)(Ñ) | | 15,600 | | 234 |
Glatfelter (Ñ) | | 10,100 | | 148 |
Griffon Corp. (Æ) | | 27,100 | | 382 |
Haynes International, Inc. (Ñ) | | 2,800 | | 101 |
HB Fuller Co. | | 77,250 | | 1,812 |
Horsehead Holding Corp. (Æ) | | 29,159 | | 346 |
Huntsman Corp. | | 123,200 | | 1,406 |
Innospec, Inc. (Æ) | | 300 | | 4 |
Insteel Industries, Inc. | | 118,479 | | 1,453 |
International Flavors & Fragrances, Inc. | | 24,600 | | 1,232 |
Intrepid Potash, Inc. (Æ)(Ñ) | | 53,500 | | 1,405 |
Kaiser Aluminum Corp. (Ñ) | | 81,200 | | 3,263 |
Koppers Holdings, Inc. | | 122,450 | | 3,449 |
Methanex Corp. | | 62,600 | | 1,451 |
Minerals Technologies, Inc. (Ñ) | | 14,300 | | 825 |
Mueller Water Products, Inc. Class A | | 328,500 | | 1,840 |
Neenah Paper, Inc. (Ñ) | | 5,900 | | 103 |
OM Group, Inc. (Æ) | | 119,674 | | 4,518 |
Pan American Silver Corp. (Ñ) | | 84,672 | | 2,242 |
PolyOne Corp. (Æ) | | 76,500 | | 865 |
Quaker Chemical Corp. | | 10,200 | | 321 |
Reliance Steel & Aluminum Co. | | 45,700 | | 2,231 |
RPM International, Inc. | | 153,146 | | 3,382 |
RTI International Metals, Inc. (Æ) | | 76,702 | | 2,075 |
Simpson Manufacturing Co., Inc. | | 38,700 | | 1,315 |
Sims Metal Management, Ltd. - ADR | | 144,486 | | 2,719 |
Sonoco Products Co. | | 1,300 | | 43 |
Steel Dynamics, Inc. | | 230,133 | | 3,615 |
Stepan Co. (Ñ) | | 900 | | 68 |
Stillwater Mining Co. (Æ)(Ñ) | | 109,061 | | 1,843 |
SuperGen, Inc. (Æ) | | 11,000 | | 32 |
Symyx Technologies, Inc. (Æ)(Ñ) | | 3,200 | | 17 |
Thompson Creek Metals Co., Inc. (Æ) | | 138,757 | | 1,779 |
Timken Co. | | 56,600 | | 1,991 |
Titanium Metals Corp. (Æ)(Ñ) | | 101,119 | | 1,559 |
United States Steel Corp. | | 39,500 | | 2,159 |
Universal Forest Products, Inc. | | 6,602 | | 278 |
Valspar Corp. (Ñ) | | 13,300 | | 417 |
Watsco, Inc. (Ñ) | | 42,951 | | 2,544 |
Westlake Chemical Corp. | | 14,700 | | 413 |
WR Grace & Co. (Æ) | | 83,303 | | 2,407 |
Zoltek Cos., Inc. (Æ) | | 8,200 | | 81 |
| | | | |
| | | | 112,036 |
| | | | |
| | |
| Other Energy - 0.1% | | | | |
Ormat Technologies, Inc. | | 48,600 | | 1,549 |
| | | | |
| | |
| Producer Durables - 15.2% | | | | |
Actuant Corp. Class A (Ñ) | | 121,150 | | 2,778 |
Administaff, Inc. | | 94,050 | | 2,082 |
AGCO Corp. (Æ) | | 188,207 | | 6,591 |
Albany International Corp. Class A | | 17,300 | | 441 |
Alexander & Baldwin, Inc. | | 81,239 | | 2,890 |
American Commercial Lines, Inc. (Æ) | | 7,590 | | 155 |
American Railcar Industries, Inc. | | 4,000 | | 65 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Ametek, Inc. | | 27,000 | | 1,168 |
AO Smith Corp. | | 34,700 | | 1,792 |
Applied Industrial Technologies, Inc. | | 32,100 | | 988 |
Arkansas Best Corp. | | 136,700 | | 4,164 |
Astec Industries, Inc. (Æ) | | 68,494 | | 2,269 |
Avery Dennison Corp. | | 9,900 | | 386 |
Barnes Group, Inc. | | 144,900 | | 3,014 |
BE Aerospace, Inc. (Æ) | | 113,934 | | 3,385 |
Briggs & Stratton Corp. | | 165,200 | | 3,922 |
Brink’s Co. (The) | | 94,400 | | 2,514 |
Bristow Group, Inc. (Æ)(Ñ) | | 117,995 | | 4,568 |
Bucyrus International, Inc. Class A | | 91,073 | | 5,738 |
Carlisle Cos., Inc. | | 15,500 | | 585 |
CDI Corp. | | 6,200 | | 108 |
Celadon Group, Inc. (Æ) | | 7,400 | | 110 |
Ceradyne, Inc. (Æ) | | 115,435 | | 2,563 |
Chart Industries, Inc. (Æ)(Ñ) | | 111,834 | | 2,571 |
Chicago Bridge & Iron Co. NV (Æ) | | 133,180 | | 3,122 |
ClearOne Communications, Inc. (Æ) | | 333 | | 1 |
Consolidated Graphics, Inc. (Æ) | | 38,424 | | 1,610 |
Convergys Corp. (Æ)(Ñ) | | 21,605 | | 273 |
Corporate Executive Board Co. (The) | | 142,900 | | 3,924 |
Crane Co. | | 8,800 | | 316 |
Cross Country Healthcare, Inc. (Æ)(Ñ) | | 14,400 | | 144 |
Cubic Corp. (Ñ) | | 29,500 | | 1,101 |
Curtiss-Wright Corp. | | 108,600 | | 3,874 |
Dover Corp. | | 26,000 | | 1,358 |
Ducommun, Inc. | | 84,121 | | 1,926 |
Dycom Industries, Inc. (Æ) | | 38,600 | | 410 |
Eagle Bulk Shipping, Inc. (Æ)(Ñ) | | 51,200 | | 296 |
Electro Rent Corp. (Ñ) | | 129,024 | | 1,844 |
Electronics for Imaging, Inc. (Æ) | | 18,917 | | 243 |
EMCOR Group, Inc. (Æ) | | 53,900 | | 1,539 |
EnerSys (Æ)(Ñ) | | 173,390 | | 4,487 |
Ennis, Inc. (Ñ) | | 107,503 | | 1,988 |
ExlService Holdings, Inc. (Æ)(Ñ) | | 86,285 | | 1,374 |
Flowserve Corp. | | 13,900 | | 1,593 |
Foster Wheeler AG (Æ) | | 152,989 | | 4,587 |
Franklin Electric Co., Inc. | | 92,050 | | 3,221 |
G&K Services, Inc. Class A | | 107,128 | | 2,945 |
GATX Corp. | | 81,200 | | 2,650 |
Genesee & Wyoming, Inc. Class A (Æ)(Ñ) | | 93,045 | | 3,638 |
Global Sources, Ltd. (Æ)(Ñ) | | 2,419 | | 18 |
Granite Construction, Inc. | | 92,800 | | 3,119 |
Harsco Corp. | | 13,800 | | 427 |
Heidrick & Struggles International, Inc. | | 5,300 | | 143 |
Hewitt Associates, Inc. Class A (Æ) | | 94,200 | | 3,861 |
HUB Group, Inc. Class A (Æ) | | 111,950 | | 3,583 |
IDEX Corp. | | 91,992 | | 3,091 |
Insituform Technologies, Inc. Class A (Æ)(Ñ) | | 67,144 | | 1,609 |
Jacobs Engineering Group, Inc. (Æ) | | 33,100 | | 1,596 |
JB Hunt Transport Services, Inc. | | 113,857 | | 4,197 |
Joy Global, Inc. | | 131,200 | | 7,453 |
Kadant, Inc. (Æ) | | 4,800 | | 96 |
KBR, Inc. | | 226,853 | | 5,009 |
Kelly Services, Inc. Class A (Æ)(Ñ) | | 17,100 | | 275 |
| | |
| 40 | | Russell U.S. Small & Mid Cap Fund |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Kennametal, Inc. (Ñ) | | 86,790 | | 2,852 |
Kforce, Inc. (Æ)(Ñ) | | 20,167 | | 280 |
Knight Transportation, Inc. (Ñ) | | 221,018 | | 4,705 |
Knightsbridge Tankers, Ltd. | | 18,100 | | 343 |
Landstar System, Inc. | | 31,697 | | 1,402 |
Layne Christensen Co. (Æ) | | 95,556 | | 2,616 |
Lexmark International, Inc. Class A (Æ)(Ñ) | | 63,800 | | 2,364 |
Littelfuse, Inc. (Æ) | | 29,000 | | 1,225 |
M&F Worldwide Corp. (Æ) | | 32,900 | | 1,009 |
Manitowoc Co., Inc. (The) (Ñ) | | 62,000 | | 869 |
Manpower, Inc. | | 66,616 | | 3,737 |
MAXIMUS, Inc. (Ñ) | | 3,800 | | 235 |
McDermott International, Inc. (Æ) | | 152,305 | | 4,175 |
Measurement Specialties, Inc. (Æ) | | 4,010 | | 66 |
Monster Worldwide, Inc. (Æ)(Ñ) | | 86,280 | | 1,504 |
Moog, Inc. Class A (Æ) | | 10,600 | | 394 |
NACCO Industries, Inc. Class A | | 1,598 | | 139 |
Nalco Holding Co. | | 105,615 | | 2,612 |
Nordson Corp. (Ñ) | | 9,900 | | 711 |
On Assignment, Inc. (Æ) | | 13,400 | | 94 |
Oshkosh Corp. (Æ) | | 97,700 | | 3,773 |
Overseas Shipholding Group, Inc. | | 15,000 | | 751 |
Pacer International, Inc. (Æ) | | 43,835 | | 291 |
PHI, Inc. (Æ)(Ñ) | | 100,514 | | 2,090 |
Robbins & Myers, Inc. (Ñ) | | 98,714 | | 2,558 |
Robert Half International, Inc. (Ñ) | | 113,443 | | 3,106 |
Roper Industries, Inc. (Ñ) | | 106,126 | | 6,476 |
RR Donnelley & Sons Co. | | 168,300 | | 3,617 |
Ryder System, Inc. | | 41,600 | | 1,935 |
Safe Bulkers, Inc. (Ñ) | | 157,020 | | 1,250 |
Saia, Inc. (Æ) | | 14,399 | | 239 |
Sensata Technologies Holding NV (Æ) | | 160,145 | | 3,203 |
SFN Group, Inc. (Æ) | | 25,500 | | 218 |
Shaw Group, Inc. (The) (Æ) | | 59,900 | | 2,293 |
Skywest, Inc. | | 285,400 | | 4,275 |
Southwest Airlines Co. | | 200,710 | | 2,645 |
SPX Corp. | | 24,930 | | 1,742 |
Standard Register Co. (The) (Ñ) | | 3,545 | | 18 |
StealthGas, Inc. (Æ) | | 193,809 | | 1,048 |
Steelcase, Inc. Class A | | 362,700 | | 2,978 |
TAL International Group, Inc. | | 54,700 | | 1,422 |
Teekay Corp. | | 22,800 | | 571 |
Terex Corp. (Æ)(Ñ) | | 40,600 | | 1,077 |
Tidewater, Inc. (Ñ) | | 36,400 | | 1,951 |
Trinity Industries, Inc. (Ñ) | | 88,200 | | 2,195 |
Triumph Group, Inc. (Ñ) | | 13,200 | | 1,024 |
Tsakos Energy Navigation, Ltd. | | 225,100 | | 3,295 |
Tutor Perini Corp. (Æ)(Ñ) | | 53,600 | | 1,301 |
Unifirst Corp. | | 46,754 | | 2,285 |
URS Corp. (Æ) | | 105,752 | | 5,430 |
UTi Worldwide, Inc. | | 101,480 | | 1,608 |
VSE Corp. | | 35,338 | | 1,420 |
Wabtec Corp. (Ñ) | | 131,626 | | 6,263 |
Waste Connections, Inc. (Æ)(Ñ) | | 18,637 | | 667 |
Werner Enterprises, Inc. (Ñ) | | 56,700 | | 1,271 |
Woodward Governor Co. (Ñ) | | 77,006 | | 2,468 |
| | | | |
| | | | 247,874 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Technology - 18.6% | | | | |
AboveNet, Inc. (Æ) | | 40,153 | | 2,029 |
Acme Packet, Inc. (Æ) | | 86,305 | | 2,256 |
Acxiom Corp. (Æ) | | 208,008 | | 3,969 |
Adaptec, Inc. (Æ) | | 65,500 | | 202 |
ADC Telecommunications, Inc. (Æ) | | 60,100 | | 481 |
Adtran, Inc. (Ñ) | | 136,156 | | 3,645 |
Advanced Micro Devices, Inc. (Æ) | | 99,500 | | 901 |
Amdocs, Ltd. (Æ) | | 106,107 | | 3,389 |
Amkor Technology, Inc. (Æ) | | 142,600 | | 1,075 |
Amphenol Corp. Class A | | 174,173 | | 8,049 |
Anadigics, Inc. (Æ) | | 7,700 | | 39 |
Ansys, Inc. (Æ) | | 222,336 | | 10,005 |
ArcSight, Inc. (Æ) | | 189,286 | | 4,302 |
Ariba, Inc. (Æ)(Ñ) | | 320,317 | | 4,571 |
Arris Group, Inc. (Æ) | | 205,941 | | 2,531 |
Arrow Electronics, Inc. (Æ) | | 154,400 | | 4,709 |
Aruba Networks, Inc. (Æ) | | 334,391 | | 4,200 |
Atheros Communications, Inc. (Æ)(Ñ) | | 42,600 | | 1,655 |
Aviat Networks, Inc. (Æ) | | 65,900 | | 428 |
Avid Technology, Inc. (Æ)(Ñ) | | 22,800 | | 333 |
Avnet, Inc. (Æ) | | 202,000 | | 6,458 |
AVX Corp. | | 110,300 | | 1,704 |
Benchmark Electronics, Inc. (Æ)(Ñ) | | 115,325 | | 2,496 |
Black Box Corp. | | 17,800 | | 555 |
Check Point Software Technologies (Æ) | | 60,000 | | 2,137 |
Ciber, Inc. (Æ) | | 49,500 | | 197 |
Cirrus Logic, Inc. (Æ) | | 281,700 | | 3,580 |
Cogent, Inc. (Æ) | | 146,481 | | 1,516 |
Cognex Corp. | | 91,270 | | 1,908 |
Coherent, Inc. (Æ)(Ñ) | | 68,345 | | 2,568 |
Cohu, Inc. | | 151,580 | | 2,448 |
Concur Technologies, Inc. (Æ)(Ñ) | | 137,058 | | 5,744 |
Cree, Inc. (Æ)(Ñ) | | 29,075 | | 2,129 |
CSG Systems International, Inc. (Æ) | | 115,888 | | 2,633 |
CTS Corp. | | 49,000 | | 515 |
Cypress Semiconductor Corp. (Æ)(Ñ) | | 184,580 | | 2,379 |
Digi International, Inc. (Æ) | | 1,300 | | 14 |
DivX, Inc. (Æ)(Ñ) | | 4,200 | | 35 |
DSP Group, Inc. (Æ) | | 6,358 | | 52 |
Earthlink, Inc. (Ñ) | | 313,800 | | 2,830 |
Electro Scientific Industries, Inc. (Æ) | | 269,976 | | 3,718 |
Emcore Corp. (Æ) | | 30,339 | | 41 |
Emulex Corp. (Æ) | | 135,417 | | 1,591 |
Entegris, Inc. (Æ) | | 254,200 | | 1,574 |
Equinix, Inc. (Æ)(Ñ) | | 90,084 | | 9,067 |
F5 Networks, Inc. (Æ) | | 117,797 | | 8,061 |
Fairchild Semiconductor International, Inc. Class A (Æ) | | 135,600 | | 1,521 |
Flextronics International, Ltd. (Æ) | | 478,815 | | 3,711 |
Fortinet, Inc. (Æ) | | 89,715 | | 1,595 |
Hittite Microwave Corp. (Æ) | | 174,339 | | 8,940 |
Imation Corp. (Æ)(Ñ) | | 24,400 | | 265 |
Informatica Corp. (Æ)(Ñ) | | 95,210 | | 2,381 |
Ingram Micro, Inc. Class A (Æ) | | 169,541 | | 3,079 |
Integrated Device Technology, Inc. (Æ) | | 126,000 | | 833 |
Internap Network Services Corp. (Æ) | | 184,900 | | 1,069 |
| | |
| Russell U.S. Small & Mid Cap Fund | | 41 |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
International Rectifier Corp. (Æ)(Ñ) | | 209,422 | | 4,821 |
Intersil Corp. Class A | | 586,087 | | 8,721 |
Jabil Circuit, Inc. | | 70,900 | | 1,086 |
Lam Research Corp. (Æ) | | 114,367 | | 4,638 |
Lattice Semiconductor Corp. (Æ) | | 472,921 | | 2,492 |
LSI Corp. (Æ) | | 303,700 | | 1,828 |
Marvell Technology Group, Ltd. (Æ) | | 113,000 | | 2,333 |
MaxLinear, Inc. (Æ) | | 78,130 | | 1,320 |
McAfee, Inc. (Æ) | | 80,385 | | 2,793 |
MEMC Electronic Materials, Inc. (Æ)(Ñ) | | 147,788 | | 1,917 |
Mentor Graphics Corp. (Æ) | | 68,066 | | 612 |
Methode Electronics, Inc. | | 63,800 | | 708 |
Micrel, Inc. | | 95,604 | | 1,116 |
Micros Systems, Inc. (Æ) | | 135,006 | | 5,017 |
Microsemi Corp. (Æ) | | 180,264 | | 2,985 |
Molex, Inc. (Ñ) | | 86,238 | | 1,933 |
National Semiconductor Corp. | | 210,044 | | 3,104 |
Ness Technologies, Inc. (Æ) | | 25,300 | | 164 |
Netlogic Microsystems, Inc. (Æ)(Ñ) | | 124,570 | | 3,883 |
Newport Corp. (Æ) | | 15,000 | | 177 |
NICE Systems, Ltd. - ADR (Æ) | | 173,750 | | 5,527 |
Novellus Systems, Inc. (Æ) | | 95,400 | | 2,500 |
Openwave Systems, Inc. (Æ)(Ñ) | | 57,533 | | 128 |
Oplink Communications, Inc. (Æ)(Ñ) | | 76,600 | | 1,157 |
Pegasystems, Inc. (Ñ) | | 94,815 | | 3,003 |
Perceptron, Inc. (Æ)(Å) | | 76,730 | | 361 |
Plexus Corp. (Æ)(Ñ) | | 21,300 | | 789 |
Power-One, Inc. (Æ)(Ñ) | | 41,300 | | 325 |
QLogic Corp. (Æ) | | 266,154 | | 5,155 |
Rackspace Hosting, Inc. (Æ)(Ñ) | | 150,310 | | 2,698 |
RealNetworks, Inc. (Æ) | | 540,500 | | 2,243 |
RF Micro Devices, Inc. (Æ)(Ñ) | | 312,850 | | 1,758 |
Rovi Corp. (Æ) | | 200,150 | | 7,802 |
Salesforce.com, Inc. (Æ)(Ñ) | | 96,000 | | 8,218 |
SBA Communications Corp. Class A (Æ)(Ñ) | | 85,533 | | 3,025 |
Silicon Image, Inc. (Æ)(Ñ) | | 75,300 | | 280 |
Silicon Laboratories, Inc. (Æ)(Ñ) | | 84,372 | | 4,079 |
Siliconware Precision Industries Co. - ADR (Ñ) | | 216,300 | | 1,330 |
Skyworks Solutions, Inc. (Æ)(Ñ) | | 132,255 | | 2,227 |
Smith Micro Software, Inc. (Æ)(Ñ) | | 216,127 | | 2,051 |
SolarWinds, Inc. (Æ) | | 135,222 | | 2,510 |
SonicWALL, Inc. (Æ) | | 85,171 | | 863 |
Sonus Networks, Inc. (Æ)(Ñ) | | 164,000 | | 425 |
Standard Microsystems Corp. (Æ)(Ñ) | | 14,840 | | 381 |
SuccessFactors, Inc. (Æ) | | 161,228 | | 3,375 |
Symmetricom, Inc. (Æ) | | 5,100 | | 34 |
Synopsys, Inc. (Æ) | | 45,300 | | 1,029 |
Taleo Corp. Class A (Æ)(Ñ) | | 82,781 | | 2,151 |
Tekelec (Æ)(Ñ) | | 125,227 | | 2,270 |
Tellabs, Inc. | | 769,891 | | 6,991 |
THQ, Inc. (Æ)(Ñ) | | 44,100 | | 335 |
Tier Technologies, Inc. Class B (Æ)(Ñ) | | 204,170 | | 1,709 |
Ultimate Software Group, Inc. (Æ)(Ñ) | | 45,095 | | 1,508 |
Unisys Corp. (Æ) | | 33,000 | | 925 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
United Online, Inc. | | 558,691 | | 4,453 |
Varian Semiconductor Equipment Associates, Inc. (Æ) | | 102,651 | | 3,381 |
Veeco Instruments, Inc. (Æ)(Ñ) | | 38,495 | | 1,693 |
VeriFone Holdings, Inc. (Æ)(Ñ) | | 266,729 | | 5,076 |
Verint Systems, Inc. (Æ) | | 66,459 | | 1,765 |
Vishay Intertechnology, Inc. (Æ) | | 290,112 | | 3,020 |
Volterra Semiconductor Corp. (Æ)(Ñ) | | 27,500 | | 659 |
Western Digital Corp. (Æ) | | 39,600 | | 1,627 |
White Electronic Designs Corp. (Æ)(Å) | | 371,657 | | 2,602 |
Zoran Corp. (Æ)(Ñ) | | 30,731 | | 299 |
| | | | |
| | | | 303,498 |
| | | | |
| | |
| Utilities - 3.0% | | | | |
AGL Resources, Inc. | | 5,800 | | 229 |
Allete, Inc. | | 106,455 | | 3,882 |
Atmos Energy Corp. | | 59,600 | | 1,763 |
Central Vermont Public Service Corp. (Ñ) | | 1,300 | | 28 |
Chesapeake Utilities Corp. | | 900 | | 27 |
Cincinnati Bell, Inc. (Æ)(Ñ) | | 63,875 | | 215 |
DPL, Inc. | | 16,600 | | 468 |
Dynegy, Inc. Class A (Æ) | | 470,400 | | 626 |
Energen Corp. | | 38,800 | | 1,896 |
Hawaiian Electric Industries, Inc. | | 62,766 | | 1,466 |
Idacorp, Inc. | | 43,900 | | 1,584 |
Integrys Energy Group, Inc. (Ñ) | | 24,400 | | 1,210 |
Laclede Group, Inc. (The) (Ñ) | | 16,369 | | 558 |
MDU Resources Group, Inc. | | 62,200 | | 1,319 |
Mirant Corp. (Æ) | | 82,600 | | 963 |
New Jersey Resources Corp. | | 35,299 | | 1,332 |
NII Holdings, Inc. (Æ) | | 69,717 | | 2,957 |
NV Energy, Inc. | | 121,100 | | 1,513 |
Otter Tail Corp. | | 156,441 | | 3,476 |
Piedmont Natural Gas Co., Inc. | | 86,000 | | 2,365 |
Pinnacle West Capital Corp. | | 53,400 | | 1,994 |
PNM Resources, Inc. | | 91,100 | | 1,238 |
Portland General Electric Co. (Ñ) | | 133,700 | | 2,658 |
Shaw Communications, Inc. | | 103,655 | | 1,950 |
Southern Union Co. | | 70,700 | | 1,847 |
Southwest Gas Corp. | | 45,675 | | 1,421 |
UGI Corp. | | 146,700 | | 4,033 |
UIL Holdings Corp. | | 18,100 | | 525 |
US Cellular Corp. (Æ) | | 6,300 | | 265 |
Vectren Corp. | | 103,505 | | 2,589 |
Westar Energy, Inc. | | 75,600 | | 1,791 |
| | | | |
| | | | 48,188 |
| | | | |
| | |
Total Common Stocks
(cost $1,262,047) | | | | 1,578,892 |
| | | | |
| | |
| Short-Term Investments - 3.6% | | | | |
Russell U.S. Cash Management Fund (£) | | 59,448,116 | | 59,448 |
| | | | |
| | |
Total Short-Term Investments
(cost $59,448) | | | | 59,448 |
| | | | |
| | |
| 42 | | Russell U.S. Small & Mid Cap Fund |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| | | | | |
| Other Securities - 22.4% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 206,721,442 | | 206,721 | |
State Street Securities Lending Quality Trust (×) | | 160,281,127 | | 159,862 | |
| | | | | |
| | |
Total Other Securities
(cost $367,003) | | | | 366,583 | |
| | | | | |
| | |
Total Investments - 122.8%
(identified cost $1,688,498) | | | | 2,004,923 | |
| | |
Other Assets and Liabilities,
Net - (22.8%) | | | | (371,946 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 1,632,977 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Small & Mid Cap Fund | | 43 |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
Russell 2000 Mini Index (CME) | | 810 | | USD | | 57,956 | | 06/10 | | 2,289 |
| | | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 2,289 |
| | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 44 | | Russell U.S. Small & Mid Cap Fund |
Russell Investment Company
Russell U.S. Small & Mid Cap Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | | % of Net
Assets | |
| | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 281,967 | | $ | — | | $ | — | | $ | 281,967 | | 17.3 | |
Consumer Staples | | | 31,327 | | | — | | | — | | | 31,327 | | 1.9 | |
Energy | | | 103,671 | | | — | | | — | | | 103,671 | | 6.3 | |
Financial Services | | | 270,649 | | | — | | | — | | | 270,649 | | 16.6 | |
Health Care | | | 178,133 | | | — | | | — | | | 178,133 | | 10.9 | |
Materials and Processing | | | 112,036 | | | — | | | — | | | 112,036 | | 6.9 | |
Other Energy | | | 1,549 | | | — | | | | | | 1,549 | | 0.1 | |
Producer Durables | | | 247,874 | | | — | | | — | | | 247,874 | | 15.2 | |
Technology | | | 303,498 | | | — | | | — | | | 303,498 | | 18.6 | |
Utilities | | | 48,188 | | | — | | | — | | | 48,188 | | 3.0 | |
Short-Term Investments | | | — | | | 59,448 | | | — | | | 59,448 | | 3.6 | |
Other Securities | | | — | | | 366,583 | | | — | | | 366,583 | | 22.4 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 1,578,892 | | | 426,031 | | | — | | | 2,004,923 | | 122.8 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (22.8 | ) |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | |
Futures Contracts | | | 2,289 | | | — | | | — | | | 2,289 | | 0.1 | |
| | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | | 2,289 | | | — | | | — | | | 2,289 | | | |
| | | | | | | | | | | | | | | |
| * | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 2,289 |
| | | |
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 10,098 |
| | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 5,550 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Small & Mid Cap Fund | | 45 |
Russell Investment Company
Russell International Developed Markets Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,045.00 | | $ | 1,018.65 |
Expenses Paid During Period* | | $ | 6.29 | | $ | 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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,041.40 | | $ | 1,014.93 |
Expenses Paid During Period* | | $ | 10.07 | | $ | 9.94 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.99% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,045.70 | | $ | 1,019.24 |
Expenses Paid During Period* | | $ | 5.68 | | $ | 5.61 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.12% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,047.20 | | $ | 1,020.43 |
Expenses Paid During Period* | | $ | 4.47 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 46 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,046.50 | | $ | 1,019.89 |
Expenses Paid During Period* | | $ | 5.02 | | $ | 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). |
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,047.20 | | $ | 1,020.73 |
Expenses Paid During Period* | | $ | 4.16 | | $ | 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). |
| | |
| Russell International Developed Markets Fund | | 47 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 90.5% | | | | |
| Australia - 3.8% | | | | |
ABC Learning Centres, Ltd. (Æ)(Å) | | 43,374 | | — |
Amcor, Ltd. | | 2,189,929 | | 13,191 |
AMP, Ltd. | | 728,192 | | 4,187 |
Ansell, Ltd. - GDR | | 79,922 | | 939 |
Arrow Energy, Ltd. (Æ) | | 24,222 | | 114 |
ASX, Ltd. | | 4,999 | | 151 |
Australia & New Zealand Banking Group, Ltd. | | 473,219 | | 10,439 |
AXA Asia Pacific Holdings, Ltd. | | 40,139 | | 230 |
BGP Holdings PLC (Æ)(Ø) | | 559,805 | | — |
BHP Billiton, Ltd. | | 488,167 | | 17,834 |
BHP Billiton, Ltd. - ADR | | 53,233 | | 3,875 |
Boral, Ltd. | | 112,517 | | 608 |
Centennial Coal Co., Ltd. | | 131,559 | | 510 |
CFS Retail Property Trust (ö)(Ñ) | | 112,154 | | 198 |
Challenger Financial Services Group, Ltd. | | 278,929 | | 1,057 |
Commonwealth Bank of Australia | | 234,780 | | 12,565 |
Computershare, Ltd. | | 17,281 | | 187 |
Consolidated Media Holdings, Ltd. | | 39,973 | | 116 |
David Jones, Ltd. | | 78,630 | | 337 |
Dexus Property Group (ö) | | 104,811 | | 78 |
Downer EDI, Ltd. | | 40,757 | | 263 |
Foster’s Group, Ltd. | | 2,461,740 | | 12,356 |
Goodman Group | | 258,487 | | 170 |
GPT Group (ö) | | 377,721 | | 204 |
Incitec Pivot, Ltd. | | 1,666,436 | | 4,908 |
Intoll Group | | 976,390 | | 1,015 |
Lend Lease Group | | 22,716 | | 179 |
MacArthur Coal, Ltd. | | 205,353 | | 2,859 |
Macquarie Group, Ltd. (Ñ) | | 101,500 | | 4,631 |
MAP Group | | 478,275 | | 1,370 |
Mirvac Group (ö) | | 74,315 | | 95 |
National Australia Bank, Ltd. | | 558,012 | | 14,262 |
Newcrest Mining, Ltd. | | 17,324 | | 521 |
Orica, Ltd. | | 27,202 | | 657 |
Origin Energy, Ltd. | | 34,014 | | 510 |
Paladin Energy, Ltd. (Æ) | | 26,596 | | 96 |
QBE Insurance Group, Ltd. | | 604,143 | | 11,755 |
Rio Tinto, Ltd. | | 118,581 | | 7,714 |
Sigma Pharmaceuticals, Ltd. | | 280,697 | | 116 |
Stockland (ö) | | 88,849 | | 324 |
Suncorp-Metway, Ltd. | | 162,316 | | 1,340 |
TABCORP Holdings, Ltd. | | 289,989 | | 1,832 |
Telstra Corp., Ltd. | | 7,695,534 | | 22,527 |
Transurban Group (Æ) | | 44,888 | | 212 |
Wesfarmers, Ltd. | | 422,702 | | 11,319 |
Westfield Group (ö) | | 86,772 | | 1,027 |
Westpac Banking Corp. | | 73,412 | | 1,824 |
WorleyParsons, Ltd. (Ñ) | | 128,516 | | 3,120 |
| | | | |
| | | | 173,822 |
| | | | |
| | |
| Austria - 0.1% | | | | |
Erste Group Bank AG | | 67,330 | | 3,007 |
OMV AG | | 106,300 | | 3,826 |
| | | | |
| | | | 6,833 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Belgium - 0.7% | | | | |
Ageas (Ñ) | | 718,051 | | 2,208 |
Ageas (Æ) | | 255,564 | | — |
Anheuser-Busch InBev NV (Ñ) | | 402,997 | | 19,609 |
Delhaize Group SA | | 13,010 | | 1,079 |
Groupe Bruxelles Lambert SA | | 3,083 | | 261 |
KBC Groep NV (Æ) | | 171,390 | | 7,760 |
| | | | |
| | | | 30,917 |
| | | | |
| | |
| Bermuda - 1.5% | | | | |
Cheung Kong Infrastructure Holdings, Ltd. | | 17,000 | | 63 |
Chinese Estates Holdings, Ltd. | | 94,500 | | 160 |
Esprit Holdings, Ltd. | | 2,249,679 | | 16,099 |
Jardine Matheson Holdings, Ltd. (Ñ) | | 198,600 | | 7,252 |
Li & Fung, Ltd. | | 3,935,000 | | 19,121 |
Mongolia Energy Co., Ltd. (Æ) | | 108,000 | | 50 |
Noble Group, Ltd. (Ñ) | | 4,632,000 | | 10,023 |
NWS Holdings, Ltd. | | 14,000 | | 24 |
RenaissanceRe Holdings, Ltd. | | 116,639 | | 6,526 |
Seadrill, Ltd. (Ñ) | | 118,600 | | 2,998 |
Shangri-La Asia, Ltd. | | 1,134,000 | | 2,187 |
VimpelCom, Ltd. - ADR (Æ) | | 82,100 | | 1,430 |
Yue Yuen Industrial Holdings, Ltd. | | 546,000 | | 1,896 |
| | | | |
| | | | 67,829 |
| | | | |
| | |
| Brazil - 1.6% | | | | |
Banco do Brasil SA | | 43,800 | | 756 |
Banco Santander Brasil SA - ADR | | 254,210 | | 2,956 |
BM&F Bovespa SA | | 649,600 | | 4,298 |
Cia de Bebidas das Americas - ADR | | 35,400 | | 3,462 |
Cyrela Brazil Realty SA | | 479,600 | | 5,794 |
Fibria Celulose SA (Æ) | | 176,400 | | 3,500 |
Gafisa SA | | 1,038,794 | | 7,076 |
Lojas Renner SA | | 106,000 | | 2,623 |
OGX Petroleo e Gas Participacoes SA (Æ) | | 1,107,700 | | 11,037 |
PDG Realty SA Empreendimentos e Participacoes | | 930,800 | | 8,546 |
Petroleo Brasileiro SA - ADR | | 138,509 | | 5,877 |
Vale SAClass B | | 408,513 | | 12,258 |
Weg SA | | 359,100 | | 3,667 |
| | | | |
| | | | 71,850 |
| | | | |
| | |
| Canada - 2.8% | | | | |
Barrick Gold Corp. | | 56,500 | | 2,461 |
BCE, Inc. | | 43,000 | | 1,292 |
Brookfield Asset Management, Inc. | | 171,240 | | 4,339 |
Canadian Imperial Bank of Commerce (Þ) | | 43,300 | | 3,178 |
Canadian National Railway Co. | | 491,281 | | 29,374 |
Canadian Natural Resources, Ltd. | | 91,200 | | 7,024 |
EnCana Corp. | | 119,800 | | 3,963 |
Gildan Activewear, Inc. Class A (Æ)(Ñ) | | 148,100 | | 4,284 |
Goldcorp, Inc. | | 108,281 | | 4,681 |
Magna International, Inc. Class A (Æ) | | 94,275 | | 6,190 |
National Bank of Canada | | 30,300 | | 1,852 |
Nexen, Inc. | | 238,741 | | 5,805 |
Potash Corp. of Saskatchewan, Inc. | | 35,600 | | 3,934 |
| | |
| 48 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Research In Motion, Ltd. (Æ) | | 242,909 | | 17,293 |
Royal Bank of Canada - GDR (Ñ) | | 208,363 | | 12,633 |
Suncor Energy, Inc. | | 143,508 | | 4,909 |
Teck Resources, Ltd. Class B | | 253,558 | | 9,965 |
Toronto-Dominion Bank (The) (Ñ) | | 79,861 | | 5,936 |
| | | | |
| | | | 129,113 |
| | | | |
| | |
| Cayman Islands - 0.6% | | | | |
ASM Pacific Technology, Ltd. | | 156,600 | | 1,492 |
Baidu, Inc. - ADR (Æ) | | 11,897 | | 8,201 |
Belle International Holdings, Ltd. | | 1,923,000 | | 2,651 |
Ctrip.com International, Ltd. - ADR (Æ) | | 175,800 | | 6,420 |
Foxconn International Holdings, Ltd. (Æ)(Ñ) | | 81,000 | | 72 |
Li Ning Co., Ltd. | | 679,000 | | 2,583 |
Lifestyle International Holdings, Ltd. (Ñ) | | 15,000 | | 29 |
Sands China, Ltd. (Æ) | | 81,200 | | 132 |
Subsea 7, Inc. (Æ)(Ñ) | | 293,086 | | 5,694 |
Tencent Holdings, Ltd. | | 72,300 | | 1,486 |
| | | | |
| | | | 28,760 |
| | | | |
| | |
| China - 0.5% | | | | |
China Life Insurance Co., Ltd. Class H | | 956,000 | | 4,352 |
Dongfang Electric Corp., Ltd. | | 708,200 | | 4,585 |
Dongfeng Motor Group Co., Ltd. Class H | | 4,441,800 | | 6,257 |
Yanzhou Coal Mining Co., Ltd. Class H | | 3,208,000 | | 8,954 |
| | | | |
| | | | 24,148 |
| | | | |
| | |
| Czech Republic - 0.1% | | | | |
Komercni Banka AS | | 20,183 | | 4,164 |
| | | | |
| | |
| Denmark - 1.2% | | | | |
AP Moller - Maersk A/S Class B (Ñ) | | 462 | | 3,833 |
Carlsberg A/S Class B (Ñ) | | 98,310 | | 8,000 |
Danske Bank A/S (Æ) | | 564,822 | | 14,678 |
FLSmidth & Co. A/S (Ñ) | | 43,105 | | 3,273 |
Novo Nordisk A/S Series B | | 273,024 | | 22,300 |
Novozymes A/S Class B (Ñ) | | 32,422 | | 3,878 |
| | | | |
| | | | 55,962 |
| | | | |
| | |
| Finland - 0.9% | | | | |
Fortum OYJ (Ñ) | | 218,000 | | 5,648 |
Kone OYJ Class B | | 128,044 | | 5,657 |
Metso OYJ (Ñ) | | 159,533 | | 6,157 |
Nokia OYJ (Ñ) | | 1,285,687 | | 15,647 |
Sampo OYJ Class A | | 41,440 | | 1,023 |
Stora Enso OYJ | | 190,920 | | 1,601 |
UPM-Kymmene OYJ | | 358,644 | | 5,178 |
Wartsila OYJ Class B | | 13,676 | | 702 |
| | | | |
| | | | 41,613 |
| | | | |
| | |
| France - 9.5% | | | | |
Accor SA | | 161,155 | | 9,209 |
Air Liquide SA | | 87,387 | | 10,112 |
Alcatel-Lucent (Æ)(Ñ) | | 1,156,264 | | 3,690 |
Alstom SA | | 92,800 | | 5,485 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
AXA SA (Ñ) | | 950,560 | | 18,894 |
BNP Paribas (Ñ) | | 338,406 | | 23,259 |
Bouygues SA (Ñ) | | 116,800 | | 5,819 |
Capital Gemini SA (Ñ) | | 241,700 | | 12,263 |
Carrefour SA | | 402,172 | | 19,705 |
Casino Guichard Perrachon SA (Ñ) | | 36,200 | | 3,199 |
Christian Dior SA | | 19,560 | | 2,069 |
Cie de St.-Gobain (Ñ) | | 311,195 | | 15,199 |
Cie Generale de Geophysique-Veritas (Æ) | | 42,800 | | 1,270 |
Cie Generale des Etablissements Michelin Class B | | 100,674 | | 7,284 |
CNP Assurances | | 82,255 | | 6,887 |
Credit Agricole SA (Ñ) | | 763,977 | | 10,899 |
Danone (Ñ) | | 136,138 | | 8,035 |
EDF SA | | 97,700 | | 5,256 |
France Telecom SA | | 944,009 | | 20,693 |
GDF Suez (Ñ) | | 233,374 | | 8,316 |
GDF Suez (Æ) | | 55,671 | | — |
Iliad SA | | 33,546 | | 3,351 |
Klepierre - GDR (ö)(Ñ) | | 72,663 | | 2,497 |
L’Oreal SA (Ñ) | | 29,619 | | 3,065 |
Lagardere SCA (Ñ) | | 340,296 | | 13,743 |
Legrand SA | | 179,570 | | 5,825 |
LVMH Moet Hennessy Louis Vuitton SA (Ñ) | | 189,504 | | 21,664 |
Metropole Television SA (Ñ) | | 57,762 | | 1,488 |
Natixis (Æ) | | 863,044 | | 4,434 |
Pernod-Ricard SA (Ñ) | | 176,524 | | 15,017 |
PPR | | 15,835 | | 2,119 |
Publicis Groupe SA (Ñ) | | 266,021 | | 11,769 |
Rexel SA (Æ) | | 139,500 | | 2,369 |
Rhodia SA | | 180,666 | | 4,236 |
Sanofi-Aventis SA | | 351,220 | | 24,049 |
Schneider Electric SA (Ñ) | | 297,171 | | 33,947 |
Societe Generale | | 268,358 | | 14,278 |
S.O.I.T.E.C. (Æ)(Ñ) | | 182,259 | | 2,456 |
Technip SA | | 23,834 | | 1,905 |
Teleperformance - GDR | | 7,006 | | 246 |
Thales SA | | 22,674 | | 844 |
Total SA (Ñ) | | 561,278 | | 30,414 |
Unibail-Rodamco SE (ö) | | 4,400 | | 829 |
Vallourec SA (Ñ) | | 72,689 | | 14,531 |
Vinci SA | | 158,269 | | 8,864 |
Vivendi SA (Ñ) | | 760,851 | | 20,025 |
| | | | |
| | | | 441,508 |
| | | | |
| | |
| Germany - 6.4% | | | | |
Adidas AG (Ñ) | | 150,427 | | 8,833 |
Aixtron AG (Ñ) | | 150,882 | | 4,725 |
Allianz SE (Ñ) | | 117,031 | | 13,435 |
BASF SE (Ñ) | | 422,992 | | 24,733 |
Bayer AG (Ñ) | | 355,492 | | 22,744 |
Bayerische Motoren Werke AG (Ñ) | | 169,200 | | 8,291 |
Beiersdorf AG (Ñ) | | 138,360 | | 7,792 |
Celesio AG (Ñ) | | 20,000 | | 655 |
Daimler AG (Æ) | | 367,431 | | 18,960 |
Deutsche Bank AG (Ñ) | | 151,582 | | 10,476 |
| | |
| Russell International Developed Markets Fund | | 49 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Deutsche Boerse AG (Ñ) | | 113,953 | | 8,877 |
Deutsche Post AG | | 159,392 | | 2,581 |
Deutsche Telekom AG | | 964,878 | | 12,546 |
E.ON AG (Ñ) | | 385,518 | | 14,236 |
GEA Group AG (Ñ) | | 128,737 | | 2,864 |
Hannover Rueckversicherung AG (Ñ) | | 84,730 | | 3,979 |
Henkel AG & Co. KGaA (Ñ) | | 212,255 | | 9,578 |
Infineon Technologies AG (Æ)(Ñ) | | 1,692,905 | | 12,007 |
Linde AG (Ñ) | | 161,930 | | 19,363 |
MAN SE (Ñ) | | 118,738 | | 11,243 |
Merck KGaA (Ñ) | | 76,440 | | 6,281 |
Metro AG (Ñ) | | 165,953 | | 9,973 |
MTU Aero Engines Holding AG (Ñ) | | 39,736 | | 2,195 |
Muenchener Rueckversicherungs AG (Ñ) | | 15,125 | | 2,137 |
RWE AG (Ñ) | | 256,354 | | 20,977 |
Salzgitter AG | | 24,544 | | 1,996 |
SAP AG (Ñ) | | 204,595 | | 9,856 |
Siemens AG | | 131,140 | | 12,965 |
ThyssenKrupp AG | | 324,977 | | 10,644 |
United Internet AG (Ñ) | | 118,609 | | 1,790 |
Volkswagen AG (Ñ) | | 4,798 | | 452 |
| | | | |
| | | | 297,184 |
| | | | |
| | |
| Guernsey - 0.1% | | | | |
Amdocs, Ltd. (Æ) | | 201,400 | | 6,433 |
| | | | |
| | |
| Hong Kong - 1.0% | | | | |
BOC Hong Kong Holdings, Ltd. | | 359,333 | | 867 |
Cheung Kong Holdings, Ltd. | | 77,000 | | 955 |
China Resources Enterprise, Ltd. | | 416,000 | | 1,461 |
CLP Holdings, Ltd. | | 118,000 | | 826 |
CNOOC, Ltd. (Ñ) | | 11,172,650 | | 19,746 |
Hang Lung Group, Ltd. | | 37,462 | | 183 |
Hang Lung Properties, Ltd. - ADR | | 826,000 | | 2,953 |
Hong Kong Exchanges and Clearing, Ltd. | | 39,754 | | 651 |
Hongkong Electric Holdings, Ltd. | | 1,364,500 | | 8,043 |
Hutchison Whampoa, Ltd. | | 118,500 | | 812 |
Link REIT (The) (ö) | | 95,500 | | 235 |
New World Development, Ltd. | | 947,020 | | 1,676 |
PCCW, Ltd. | | 122,000 | | 37 |
Sino Land Co., Ltd. | | 896,000 | | 1,608 |
Sun Hung Kai Properties, Ltd. | | 160,333 | | 2,239 |
Swire Pacific, Ltd. | | 32,321 | | 361 |
Television Broadcasts, Ltd. | | 94,334 | | 455 |
Wharf Holdings, Ltd. | | 122,000 | | 658 |
Wheelock & Co., Ltd. | | 132,068 | | 408 |
| | | | |
| | | | 44,174 |
| | | | |
| | |
| Hungary - 0.1% | | | | |
OTP Bank PLC (Æ) | | 190,440 | | 6,705 |
| | | | |
| | |
| India - 1.1% | | | | |
HDFC Bank, Ltd. - ADR | | 18,550 | | 2,766 |
Hindalco Industries, Ltd. | | 489,800 | | 1,951 |
ICICI Bank, Ltd. | | 239,343 | | 5,049 |
ICICI Bank, Ltd. - ADR | | 226,160 | | 9,616 |
Infosys Technologies, Ltd. | | 155,470 | | 9,516 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Infosys Technologies, Ltd. - ADR | | 138,818 | | 8,312 |
Reliance Industries, Ltd. - GDR (Þ) | | 110,750 | | 5,139 |
State Bank of India, Ltd. - GDR | | 1,200 | | 122 |
Tata Motors, Ltd. - ADR | | 179,100 | | 3,663 |
Tata Steel, Ltd. | | 215,900 | | 3,001 |
| | | | |
| | | | 49,135 |
| | | | |
| | |
| Indonesia - 0.2% | | | | |
Adaro Energy Tbk PT | | 11,600,000 | | 2,781 |
Astra International Tbk PT (Å) | | 41,000 | | 212 |
Bank Rakyat Indonesia | | 8,243,000 | | 8,147 |
| | | | |
| | | | 11,140 |
| | | | |
| | |
| Ireland - 0.7% | | | | |
Accenture PLC Class A | | 71,000 | | 3,099 |
Cooper Industries PLC | | 118,684 | | 5,827 |
Covidien PLC | | 205,000 | | 9,838 |
Ryanair Holdings PLC - ADR (Æ) | | 216,431 | | 6,095 |
Willis Group Holdings PLC | | 185,900 | | 6,404 |
| | | | |
| | | | 31,263 |
| | | | |
| | |
| Israel - 0.7% | | | | |
Bezeq Israeli Telecommunication Corp., Ltd. | | 810,449 | | 1,971 |
Check Point Software Technologies (Æ) | | 99,000 | | 3,526 |
Teva Pharmaceutical Industries, Ltd. - ADR | | 459,503 | | 26,987 |
| | | | |
| | | | 32,484 |
| | | | |
| | |
| Italy - 1.6% | | | | |
Banca Popolare di Milano Scarl | | 975,880 | | 5,484 |
ENI SpA | | 510,734 | | 11,449 |
Finmeccanica SpA | | 836,729 | | 10,706 |
Intesa Sanpaolo SpA | | 3,387,224 | | 11,147 |
Mediaset SpA | | 91,102 | | 724 |
Prysmian SpA | | 60,199 | | 1,082 |
Saipem SpA | | 303,301 | | 11,377 |
Telecom Italia SpA | | 7,265,978 | | 9,571 |
UniCredit SpA | | 4,679,800 | | 12,274 |
| | | | |
| | | | 73,814 |
| | | | |
| | |
| Japan - 16.7% | | | | |
Advantest Corp. | | 137,300 | | 3,555 |
Aeon Co., Ltd. (Ñ) | | 418,900 | | 4,820 |
Aeon Credit Service Co., Ltd. (Ñ) | | 220,600 | | 2,401 |
Air Water, Inc. | | 87,000 | | 958 |
Asahi Breweries, Ltd. | | 193,100 | | 3,476 |
Asahi Glass Co., Ltd. | | 666,000 | | 7,876 |
Astellas Pharma, Inc. | | 436,500 | | 15,319 |
Bank of Yokohama, Ltd. (The) | | 658,000 | | 3,439 |
Canon Marketing Japan, Inc. | | 31,500 | | 493 |
Canon, Inc. | | 1,317,213 | | 60,137 |
Central Glass Co., Ltd. | | 61,000 | | 294 |
Chubu Electric Power Co., Inc. | | 103,500 | | 2,403 |
Circle K Sunkus Co., Ltd. | | 47,500 | | 671 |
COMSYS Holdings Corp. | | 12,900 | | 121 |
Dai Nippon Printing Co., Ltd. (Ñ) | | 129,000 | | 1,780 |
| | |
| 50 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Dai-ichi Life Insurance Co., Ltd. (The) | | 3,800 | | 6,493 |
Daifuku Co., Ltd. | | 58,000 | | 435 |
Daikin Industries, Ltd. | | 194,100 | | 7,354 |
Daito Trust Construction Co., Ltd. | | 3,500 | | 187 |
Daiwa House Industry Co., Ltd. | | 20,000 | | 215 |
Daiwa Securities Group, Inc. | | 763,000 | | 3,951 |
Dena Co., Ltd. | | 344 | | 2,772 |
Disco Corp. | | 63,800 | | 4,469 |
Doutor Nichires Holdings Co., Ltd. | | 22,400 | | 335 |
Dowa Holdings Co., Ltd. (Ñ) | | 145,000 | | 807 |
East Japan Railway Co. | | 71,100 | | 4,749 |
Elpida Memory, Inc. (Æ) | | 322,200 | | 6,758 |
FamilyMart Co., Ltd. (Ñ) | | 189,100 | | 6,512 |
Fanuc, Ltd. | | 149,700 | | 17,708 |
Fast Retailing Co., Ltd. | | 16,200 | | 2,452 |
FUJIFILM Holdings Corp. | | 67,600 | | 2,321 |
Fujikura, Ltd. | | 233,000 | | 1,245 |
Fujitsu, Ltd. | | 424,000 | | 3,001 |
Funai Electric Co., Ltd. | | 22,100 | | 867 |
Furukawa Electric Co., Ltd. | | 188,000 | | 928 |
Glory, Ltd. (Ñ) | | 6,600 | | 169 |
Gree, Inc. (Ñ) | | 44,500 | | 2,456 |
Hakuhodo DY Holdings, Inc. | | 1,670 | | 95 |
Hirose Electric Co., Ltd. (Ñ) | | 20,900 | | 2,258 |
Hitachi Capital Corp. | | 32,300 | | 488 |
Hitachi High-Technologies Corp. | | 38,800 | | 852 |
Hitachi, Ltd. (Æ) | | 370,000 | | 1,651 |
Honda Motor Co., Ltd. | | 553,900 | | 18,716 |
Hoya Corp. | | 585,200 | | 16,097 |
Ibiden Co., Ltd. | | 81,800 | | 2,921 |
Inpex Corp. | | 1,370 | | 9,685 |
ITOCHU Corp. | | 503,000 | | 4,375 |
Japan Real Estate Investment Corp. Class A (ö) | | 18 | | 150 |
Japan Retail Fund Investment Corp. Class A (ö) | | 66 | | 89 |
Japan Tobacco, Inc. | | 2,201 | | 7,610 |
JFE Holdings, Inc. | | 152,800 | | 5,505 |
JGC Corp. | | 113,000 | | 1,936 |
JTEKT Corp. | | 211,400 | | 2,438 |
JX Holdings, Inc. (Æ) | | 1,046,120 | | 5,836 |
Kagoshima Bank, Ltd. (The) | | 59,000 | | 389 |
Kaken Pharmaceutical Co., Ltd. | | 69,000 | | 559 |
Kandenko Co., Ltd. | | 63,000 | | 411 |
Kaneka Corp. | | 172,000 | | 1,077 |
Kansai Paint Co., Ltd. | | 133,000 | | 1,010 |
Kao Corp. | | 700,700 | | 16,960 |
KDDI Corp. | | 3,023 | | 14,656 |
Keiyo Bank, Ltd. (The) | | 47,000 | | 218 |
Keyence Corp. | | 19,400 | | 4,627 |
Kinden Corp. | | 40,000 | | 355 |
Komatsu, Ltd. | | 394,300 | | 7,958 |
Konica Minolta Holdings, Inc. | | 649,000 | | 8,170 |
Kose Corp. (Ñ) | | 2,400 | | 56 |
Lawson, Inc. | | 146,600 | | 6,488 |
Makino Milling Machine Co., Ltd. (Æ) | | 364,000 | | 2,495 |
Makita Corp. | | 55,600 | | 1,724 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Marubeni Corp. | | 1,856,000 | | 10,996 |
MEGMILK SNOW BRAND Co., Ltd. (Ñ) | | 300 | | 5 |
Miraca Holdings, Inc. | | 52,200 | | 1,674 |
Mitsubishi Corp. | | 1,040,300 | | 24,686 |
Mitsubishi Electric Corp. | | 583,000 | | 5,205 |
Mitsubishi Estate Co., Ltd. | | 43,000 | | 777 |
Mitsubishi Materials Corp. (Æ) | | 482,000 | | 1,433 |
Mitsubishi UFJ Financial Group, Inc. | | 1,990,600 | | 10,357 |
Mitsubishi UFJ Lease & Finance Co., Ltd. (Ñ) | | 19,230 | | 745 |
Mitsui & Co., Ltd. | | 798,300 | | 12,046 |
Mitsui Fudosan Co., Ltd. | | 582,000 | | 10,834 |
Mitsui OSK Lines, Ltd. | | 455,000 | | 3,428 |
Mitsumi Electric Co., Ltd. | | 49,500 | | 1,082 |
Mizuho Financial Group, Inc. | | 5,647,600 | | 10,876 |
MS&AD Insurance Group Holdings | | 359,900 | | 10,339 |
Murata Manufacturing Co., Ltd. | | 118,700 | | 6,987 |
Musashino Bank, Ltd. (The) | | 8,100 | | 241 |
Namco Bandai Holdings, Inc. (Ñ) | | 76,800 | | 768 |
NGK Spark Plug Co., Ltd. | | 291,800 | | 3,955 |
Nichirei Corp. | | 28,000 | | 111 |
Nintendo Co., Ltd. | | 17,100 | | 5,747 |
Nippon Building Fund, Inc. Class A (ö) | | 20 | | 168 |
Nippon Electric Glass Co., Ltd. | | 612,000 | | 9,338 |
Nippon Kayaku Co., Ltd. | | 100,000 | | 881 |
Nippon Sheet Glass Co., Ltd. | | 591,000 | | 1,956 |
Nippon Telegraph & Telephone Corp. | | 193,800 | | 7,867 |
Nissan Motor Co., Ltd. (Æ) | | 1,830,500 | | 16,033 |
Nissan Shatai Co., Ltd. | | 76,000 | | 571 |
Nitori Co., Ltd. (Ñ) | | 10,950 | | 860 |
Nitto Denko Corp. | | 124,200 | | 4,862 |
Nomura Holdings, Inc. | | 1,363,300 | | 9,404 |
NTT DoCoMo, Inc. | | 7,000 | | 10,888 |
NTT DoCoMo, Inc. - ADR | | 16,729 | | 259 |
Okinawa Electric Power Co., Inc. (The) | | 8,200 | | 463 |
Omron Corp. | | 620,800 | | 14,454 |
ORIX Corp. (Ñ) | | 94,570 | | 8,661 |
Osaka Gas Co., Ltd. | | 627,000 | | 2,180 |
Panasonic Corp. | | 369,600 | | 5,403 |
Panasonic Electric Works Co., Ltd. | | 42,000 | | 518 |
Promise Co., Ltd. (Ñ) | | 81,950 | | 780 |
Rakuten, Inc. | | 4,102 | | 3,173 |
SBI Holdings, Inc. | | 632 | | 136 |
Seino Holdings Corp. | | 130,000 | | 937 |
Sekisui House, Ltd. | | 452,000 | | 4,313 |
Seven & I Holdings Co., Ltd. | | 729,000 | | 18,614 |
Sharp Corp. (Ñ) | | 309,000 | | 4,032 |
Shin-Etsu Chemical Co., Ltd. | | 153,300 | | 8,852 |
Shinko Electric Industries Co., Ltd. | | 52,400 | | 928 |
Softbank Corp. | | 108,100 | | 2,419 |
Sony Corp. | | 330,500 | | 11,298 |
Stanley Electric Co., Ltd. | | 30,500 | | 626 |
Sumco Corp. (Ñ) | | 253,800 | | 5,617 |
Sumitomo Bakelite Co., Ltd. | | 89,000 | | 491 |
Sumitomo Electric Industries, Ltd. | | 122,100 | | 1,508 |
Sumitomo Mitsui Financial Group, Inc. (Ñ) | | 512,700 | | 16,915 |
Sumitomo Realty & Development Co., Ltd. | | 214,000 | | 4,406 |
| | |
| Russell International Developed Markets Fund | | 51 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Sumitomo Trust & Banking Co., Ltd. (The) | | 602,000 | | 3,652 |
Takeda Pharmaceutical Co., Ltd. | | 781,700 | | 33,641 |
Terumo Corp. | | 51,600 | | 2,630 |
THK Co., Ltd. | | 628,500 | | 13,638 |
Tokai Rika Co., Ltd. | | 54,200 | | 1,161 |
Tokio Marine Holdings, Inc. | | 427,500 | | 12,732 |
Tokuyama Corp. | | 48,000 | | 270 |
Tokyo Electric Power Co., Inc. (The) | | 209,100 | | 5,246 |
Tokyo Electron, Ltd. | | 127,600 | | 8,433 |
Tokyo Gas Co., Ltd. | | 896,000 | | 3,801 |
Tokyo Steel Manufacturing Co., Ltd. | | 43,600 | | 587 |
Toshiba Corp. | | 2,616,000 | | 15,000 |
Toyo Seikan Kaisha, Ltd. | | 41,100 | | 704 |
Toyo Suisan Kaisha, Ltd. | | 133,000 | | 3,195 |
Toyoda Gosei Co., Ltd. | | 70,200 | | 1,928 |
Toyota Auto Body Co., Ltd. | | 17,500 | | 282 |
Toyota Motor Corp. | | 559,300 | | 21,600 |
USS Co., Ltd. | | 12,850 | | 878 |
West Japan Railway Co. | | 1,382 | | 5,031 |
Yahoo! Japan Corp. (Ñ) | | 6,841 | | 2,614 |
Yamada Denki Co., Ltd. | | 47,820 | | 3,719 |
| | | | |
| | | | 774,627 |
| | | | |
| | |
| Kazakhstan - 0.0% | | | | |
KazMunaiGas Exploration Production - GDR | | 83,150 | | 2,045 |
| | | | |
| | |
| Luxembourg - 0.2% | | | | |
Acergy SA | | 141,870 | | 2,671 |
ArcelorMittal | | 89,478 | | 3,525 |
Evraz Group SA - GDR (Æ) | | 21,101 | | 772 |
| | | | |
| | | | 6,968 |
| | | | |
| | |
| Malaysia - 0.1% | | | | |
CIMB Group Holdings BHD | | 824,400 | | 3,652 |
| | | | |
| | |
| Mauritius - 0.0% | | | | |
Golden Agri-Resources, Ltd. (Æ) | | 4,344,000 | | 1,829 |
| | | | |
| | |
| Mexico - 0.2% | | | | |
America Movil SAB de CV Series L | | 37,200 | | 1,915 |
Grupo Financiero Banorte SAB de CV | | 270,500 | | 1,123 |
Grupo Televisa SA - ADR | | 79,600 | | 1,654 |
Wal-Mart de Mexico SAB de CV | | 1,527,800 | | 3,557 |
| | | | |
| | | | 8,249 |
| | | | |
| | |
| Netherlands - 4.0% | | | | |
Aegon NV (Æ) | | 1,096,091 | | 7,673 |
Akzo Nobel NV (Ñ) | | 472,108 | | 27,751 |
ASML Holding NV | | 184,568 | | 6,016 |
Brit Insurance Holdings NV | | 69,137 | | 843 |
Corio NV (ö) | | 2,598 | | 151 |
CSM | | 2,653 | | 86 |
Delta Lloyd NV (Æ) | | 67,200 | | 1,464 |
European Aeronautic Defence and Space Co. NV (Ñ) | | 477,547 | | 8,850 |
Fugro NV | | 51,530 | | 3,362 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Heineken NV (Ñ) | | 370,391 | | 17,193 |
ING Groep NV (Æ) | | 2,573,461 | | 23,036 |
Koninklijke DSM NV (Ñ) | | 113,652 | | 5,067 |
Koninklijke Philips Electronics NV | | 726,815 | | 24,485 |
New World Resources NV (Æ) | | 175,618 | | 2,477 |
QIAGEN NV (Æ) | | 180,553 | | 4,153 |
Randstad Holding NV (Æ) | | 304,503 | | 15,523 |
Reed Elsevier NV (Ñ) | | 808,717 | | 9,601 |
STMicroelectronics NV | | 267,003 | | 2,472 |
TNT NV | | 275,720 | | 8,464 |
Unilever NV | | 251,521 | | 7,687 |
Wolters Kluwer NV | | 426,440 | | 8,745 |
X5 Retail Group NV - GDR (Æ) | | 47,946 | | 1,701 |
| | | | |
| | | | 186,800 |
| | | | |
| | |
| Netherlands Antilles - 0.0% | | | | |
Hunter Douglas NV | | 6,791 | | 341 |
| | | | |
| | |
| New Zealand - 0.1% | | | | |
Telecom Corp. of New Zealand, Ltd. | | 3,347,942 | | 5,247 |
| | | | |
| | |
| Norway - 0.3% | | | | |
Petroleum Geo-Services ASA (Æ) | | 156,400 | | 2,291 |
Telenor ASA (Ñ) | | 815,700 | | 11,654 |
| | | | |
| | | | 13,945 |
| | | | |
| | |
| Russia - 0.4% | | | | |
Gazprom OAO - ADR | | 590,881 | | 13,716 |
Luka Kotor AD Kotor - ADR | | 52,450 | | 3,000 |
Mechel - ADR | | 41,600 | | 1,069 |
Rosneft Oil Co. - GDR | | 340,751 | | 2,755 |
| | | | |
| | | | 20,540 |
| | | | |
| | |
| Singapore - 1.3% | | | | |
Ascendas Real Estate Investment Trust (ö) | | 77,000 | | 109 |
CapitaLand, Ltd. (Ñ) | | 4,290,000 | | 11,578 |
CapitaMall Trust (Æ)(ö) | | 112,000 | | 158 |
CapitaMalls Asia, Ltd. | | 53,000 | | 84 |
City Developments, Ltd. | | 305,000 | | 2,349 |
ComfortDelgro Corp., Ltd. | | 103,000 | | 117 |
DBS Group Holdings, Ltd. | | 75,000 | | 831 |
Fraser and Neave, Ltd. | | 159,000 | | 563 |
Jardine Cycle & Carriage, Ltd. | | 16,800 | | 369 |
Keppel Corp., Ltd. | | 105,000 | | 746 |
Neptune Orient Lines, Ltd. (Æ)(Ñ) | | 222,000 | | 351 |
Oversea-Chinese Banking Corp., Ltd. | | 761,285 | | 4,833 |
Pacific Century Regional Developments, Ltd. | | 197,000 | | 29 |
SembCorp Industries, Ltd. | | 47,000 | | 143 |
Singapore Exchange, Ltd. | | 37,000 | | 220 |
Singapore Technologies Engineering, Ltd. | | 52,000 | | 119 |
Singapore Telecommunications, Ltd. | | 8,943,810 | | 19,845 |
StarHub, Ltd. | | 23,000 | | 40 |
United Overseas Bank, Ltd. | | 1,105,857 | | 16,203 |
UOL Group, Ltd. | | 11,222 | | 31 |
Yangzijiang Shipbuilding Holdings, Ltd. (Ñ) | | 65,000 | | 63 |
| | | | |
| | | | 58,781 |
| | | | |
| | |
| 52 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| South Africa - 0.2% | | | | |
Aspen Pharmacare Holdings, Ltd. (Æ) | | 163,639 | | 1,840 |
MTN Group, Ltd. | | 264,060 | | 3,887 |
Naspers, Ltd. Class N | | 102,148 | | 4,119 |
| | | | |
| | | | 9,846 |
| | | | |
| | |
| South Korea - 1.3% | | | | |
Hana Financial Group, Inc. | | 51,100 | | 1,581 |
Hynix Semiconductor, Inc. (Æ) | | 106,400 | | 2,676 |
Hyundai Heavy Industries Co., Ltd. | | 14,161 | | 3,192 |
Hyundai Mobis | | 50,235 | | 8,342 |
Hyundai Motor Co. | | 62,410 | | 7,627 |
Hyundai Motor Co. - GDR (Þ) | | 12,130 | | 750 |
KB Financial Group, Inc. | | 217,866 | | 10,533 |
LG Innotek Co., Ltd. | | 39,351 | | 6,114 |
Samsung Electronics Co., Ltd. | | 25,849 | | 19,550 |
| | | | |
| | | | 60,365 |
| | | | |
| | |
| Spain - 2.9% | | | | |
Banco Bilbao Vizcaya Argentaria SA (Ñ) | | 1,765,826 | | 23,122 |
Banco Santander SA (Ñ) | | 2,466,872 | | 30,993 |
Banco Santander SA | | 4,242 | | 53 |
Endesa SA | | 80,147 | | 2,277 |
Gestevision Telecinco SA | | 177,264 | | 2,529 |
Iberdrola SA | | 2,099,728 | | 16,726 |
Inditex SA (Ñ) | | 393,071 | | 24,162 |
Indra Sistemas SA (Ñ) | | 146,000 | | 2,911 |
Tecnicas Reunidas SA | | 57,154 | | 3,485 |
Telefonica SA | | 1,349,230 | | 30,299 |
| | | | |
| | | | 136,557 |
| | | | |
| | |
| Sweden - 0.8% | | | | |
Atlas Copco AB Class A (Ñ) | | 61,710 | | 1,002 |
Electrolux AB | | 341,394 | | 8,825 |
Investor AB Class B (Ñ) | | 23,074 | | 439 |
Nordea Bank AB (Ñ) | | 105,664 | | 1,037 |
Skandinaviska Enskilda Banken AB Class A | | 437,105 | | 3,011 |
Skanska AB Class B | | 78,009 | | 1,300 |
Svenska Cellulosa AB Class B (Ñ) | | 408,242 | | 5,348 |
Swedish Match AB (Ñ) | | 108,098 | | 2,468 |
Tele2 AB Class B (Ñ) | | 160,965 | | 2,736 |
Telefonaktiebolaget LM Ericsson Class B (Ñ) | | 505,067 | | 5,873 |
Volvo AB Class B (Æ)(Ñ) | | 288,045 | | 3,565 |
| | | | |
| | | | 35,604 |
| | | | |
| | |
| Switzerland - 7.9% | | | | |
ABB, Ltd. (Æ) | | 696,207 | | 13,398 |
ACE, Ltd. | | 30,400 | | 1,617 |
Actelion, Ltd. (Æ) | | 127,463 | | 5,129 |
Adecco SA | | 114,470 | | 6,746 |
Cie Financiere Richemont SA | | 344,509 | | 12,736 |
Clariant AG (Æ) | | 555,952 | | 7,674 |
Credit Suisse Group AG | | 822,730 | | 37,637 |
GAM Holding, Ltd. (Æ) | | 605,656 | | 7,530 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Givaudan SA | | 9,319 | | 8,112 |
Helvetia Holding AG | | 477 | | 145 |
Holcim, Ltd. | | 8,349 | | 626 |
Julius Baer Group, Ltd. | | 489,790 | | 16,915 |
Kuehne + Nagel International AG | | 7,847 | | 816 |
Lonza Group AG (Ñ) | | 67,313 | | 5,281 |
Nestle SA | | 1,229,833 | | 60,021 |
Novartis AG | | 882,330 | | 45,018 |
Roche Holding AG | | 216,183 | | 34,143 |
Sonova Holding AG | | 44,138 | | 5,505 |
Swatch Group AG (The) | | 88,254 | | 4,839 |
Class B | | 46,611 | | 13,740 |
Swiss Life Holding AG (Æ) | | 12,146 | | 1,479 |
Swiss Reinsurance Co., Ltd. | | 81,444 | | 3,550 |
Syngenta AG | | 51,048 | | 12,963 |
Transocean, Ltd. (Æ)(Ñ) | | 35,230 | | 2,552 |
Tyco Electronics, Ltd. | | 508,900 | | 16,346 |
Tyco International, Ltd. | | 65,800 | | 2,552 |
UBS AG (Æ) | | 965,832 | | 14,922 |
Zurich Financial Services AG | | 103,240 | | 23,018 |
| | | | |
| | | | 365,010 |
| | | | |
| | |
| Taiwan - 0.7% | | | | |
Acer, Inc. | | 531,810 | | 1,442 |
AU Optronics Corp. | | 2,248,490 | | 2,615 |
HON HAI Precision Industry Co., Ltd. (Å) | | 2,923,320 | | 13,655 |
MediaTek, Inc. | | 231,378 | | 3,893 |
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR | | 593,519 | | 6,285 |
United Microelectronics Corp. (Æ) | | 4,556,000 | | 2,291 |
| | | | |
| | | | 30,181 |
| | | | |
| | |
| Turkey - 0.2% | | | | |
Turkiye Garanti Bankasi AS | | 1,247,960 | | 6,065 |
Turkiye Vakiflar Bankasi Tao Class D | | 867,611 | | 2,278 |
| | | | |
| | | | 8,343 |
| | | | |
| | |
| United Kingdom - 17.4% | | | | |
Aegis Group PLC | | 5,991,485 | | 11,832 |
AMEC PLC - GDR | | 359,419 | | 4,534 |
Amlin PLC | | 323,284 | | 1,852 |
Anglo American PLC (Æ) | | 113,166 | | 4,847 |
Antofagasta PLC | | 82,565 | | 1,259 |
AstraZeneca PLC | | 192,606 | | 8,516 |
Atkins WS PLC | | 118,892 | | 1,277 |
Autonomy Corp. PLC (Æ) | | 598,175 | | 16,460 |
Aviva PLC | | 3,265,689 | | 17,282 |
BAE Systems PLC | | 2,638,500 | | 13,869 |
Barclays PLC | | 6,261,537 | | 32,059 |
BBA Aviation PLC | | 371,061 | | 1,175 |
BG Group PLC | | 1,259,945 | | 21,154 |
BHP Billiton PLC | | 253,954 | | 7,802 |
BP PLC | | 7,331,399 | | 63,868 |
British Land Co. PLC (ö) | | 61,280 | | 437 |
British Sky Broadcasting Group PLC | | 746,268 | | 6,999 |
BT Group PLC | | 1,622,270 | | 3,142 |
| | |
| Russell International Developed Markets Fund | | 53 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Bunzl PLC | | 566,200 | | 6,611 |
Burberry Group PLC | | 442,040 | | 4,550 |
Cairn Energy PLC (Æ) | | 1,267,689 | | 7,739 |
Capita Group PLC (The) | | 289,426 | | 3,534 |
Carillion PLC | | 1,753,058 | | 9,111 |
Compass Group PLC | | 3,025,549 | | 24,696 |
Diageo PLC | | 737,693 | | 12,580 |
Electrocomponents PLC | | 65,954 | | 226 |
EnQuest PLC (Æ) | | 193,193 | | 292 |
Experian PLC | | 582,597 | | 5,391 |
GlaxoSmithKline PLC | | 1,195,525 | | 22,141 |
Hays PLC | | 2,435,312 | | 4,162 |
Home Retail Group PLC | | 1,016,570 | | 4,283 |
HSBC Holdings PLC (Ñ) | | 328,171 | | 3,373 |
HSBC Holdings PLC | | 4,896,448 | | 49,882 |
Imperial Tobacco Group PLC | | 310,733 | | 8,870 |
Informa PLC | | 252,500 | | 1,531 |
Intercontinental Hotels Group PLC | | 115,400 | | 2,030 |
International Power PLC | | 1,772,357 | | 8,955 |
John Wood Group PLC | | 223,553 | | 1,257 |
Johnson Matthey PLC | | 87,335 | | 2,326 |
Kazakhmys PLC | | 141,600 | | 3,033 |
Kesa Electricals PLC | | 640,599 | | 1,223 |
Kingfisher PLC | | 1,105,790 | | 4,225 |
Ladbrokes PLC | | 798,209 | | 1,902 |
Land Securities Group PLC (ö) | | 40,123 | | 401 |
Lloyds Banking Group PLC (Æ) | | 3,405 | | 3 |
Marks & Spencer Group PLC | | 892,300 | | 4,998 |
Mondi PLC | | 395,017 | | 2,685 |
National Grid PLC | | 762,213 | | 7,360 |
Next PLC | | 54,760 | | 1,921 |
Old Mutual PLC | | 3,149,800 | | 5,566 |
Persimmon PLC (Æ) | | 111,970 | | 815 |
Petrofac, Ltd. | | 285,766 | | 4,966 |
Randgold Resources, Ltd. | | 3,745 | | 317 |
Reckitt Benckiser Group PLC | | 669,831 | | 34,764 |
Reed Elsevier PLC | | 794,934 | | 6,261 |
Rentokil Initial PLC (Æ) | | 1,918,800 | | 3,725 |
Rio Tinto PLC | | 335,823 | | 16,940 |
Rolls-Royce Group PLC (Æ) | | 170,290,788 | | 18,127 |
Rotork PLC | | 101,577 | | 2,184 |
Royal Bank of Scotland Group PLC (Æ) | | 9,646,360 | | 7,924 |
Royal Dutch Shell PLC Class A (Ñ) | | 1,578,508 | | 49,537 |
Royal Dutch Shell PLC Class A | | 433,123 | | 13,552 |
Royal Dutch Shell PLC Class B | | 181,692 | | 5,483 |
Smith & Nephew PLC | | 1,428,645 | | 14,831 |
Smiths Group PLC | | 358,933 | | 6,181 |
Standard Chartered PLC | | 1,095,288 | | 29,196 |
Tesco PLC | | 1,818,024 | | 12,094 |
Thomas Cook Group PLC | | 384,900 | | 1,465 |
Travis Perkins PLC (Æ) | | 1,089,069 | | 14,016 |
TUI Travel PLC (Ñ) | | 354,500 | | 1,516 |
Tullow Oil PLC | | 415,096 | | 7,180 |
Unilever PLC | | 860,642 | | 25,782 |
Vedanta Resources PLC (Ñ) | | 112,169 | | 4,322 |
Vodafone Group PLC | | 23,774,230 | | 52,850 |
William Hill PLC | | 852,486 | | 2,667 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Wolseley PLC (Æ) | | 201,181 | | 5,060 |
WPP PLC | | 1,688,654 | | 17,953 |
Xstrata PLC | | 812,018 | | 13,447 |
| | | | |
| | | | 808,376 |
| | | | |
| | |
| United States - 0.6% | | | | |
Autoliv, Inc. (Æ) | | 180,500 | | 9,882 |
Domtar Corp. (Æ) | | 60,100 | | 4,258 |
Synthes, Inc. (Æ) | | 93,230 | | 10,620 |
Tim Hortons, Inc. (Ñ) | | 111,175 | | 3,675 |
| | | | |
| | | | 28,435 |
| | | | |
| | |
Total Common Stocks
(cost $3,864,955) | | | | 4,194,592 |
| | | | |
| | |
| Preferred Stocks - 0.4% | | | | |
| Brazil - 0.2% | | | | |
Itau Unibanco Holding SA | | 231,400 | | 5,019 |
NET Servicos de Comunicacao SA (Æ) | | 230,800 | | 2,722 |
| | | | |
| | | | 7,741 |
| | | | |
| | |
| Germany - 0.2% | | | | |
Fresenius SE (Ñ) | | 26,172 | | 1,894 |
Henkel AG & Co. KGaA (Ñ) | | 78,080 | | 4,178 |
Volkswagen AG (Ñ) | | 7,204 | | 695 |
| | | | |
| | | | 6,767 |
| | | | |
| | |
| South Korea - 0.0% | | | | |
Samsung Electronics Co., Ltd. | | 2,500 | | 1,185 |
| | | | |
| | |
Total Preferred Stocks
(cost $13,374) | | | | 15,693 |
| | | | |
| | |
| Warrants & Rights - 0.2% | | | | |
| Switzerland - 0.1% | | | | |
Axis Bank, Ltd.
2013 Warrants (Æ) | | 77 | | 2,210 |
| | | | |
| | |
| United States - 0.1% | | | | |
Acer, Inc. (Þ)(Æ)
2014 Warrants | | 313 | | 858 |
Epistar Corp. (Þ)(Æ)
2014 Warrants | | 784 | | 2,524 |
JP Morgan International Derivatives, Ltd. (Æ)
2014 Warrants | | 854 | | 2,350 |
| | | | |
| | | | 5,732 |
| | | | |
| | |
Total Warrants & Rights
(cost $7,753) | | | | 7,942 |
| | | | |
| | |
| Short-Term Investments - 7.8% | | | | |
| United States - 7.8% | | | | |
Russell U.S. Cash Management Fund (£) | | 362,931,378 | | 362,931 |
| | | | |
| | |
Total Short-Term Investments
(cost $362,931) | | | | 362,931 |
| | | | |
| | |
| 54 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| | | | | |
| Other Securities - 5.6% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 147,417,414 | | 147,417 | |
State Street Securities Lending Quality Trust (×) | | 114,299,848 | | 114,001 | |
| | | | | |
| | |
Total Other Securities
(cost $261,717) | | | | 261,418 | |
| | | | | |
| | |
Total Investments - 104.5%
(identified cost $4,510,730) | | | | 4,842,576 | |
| | |
Other Assets and Liabilities,
Net - (4.5%) | | | | (208,230 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 4,634,346 | |
| | | | | |
A portion of the portfolio has been fair valued as of period end.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 55 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | |
| Long Positions | | | | | | | | | | | |
AEX Index (Netherlands) | | 350 | | EUR | | 24,052 | | 05/10 | | (701 | ) |
CAC-40 Index (France) | | 1,297 | | EUR | | 48,547 | | 05/10 | | (4,143 | ) |
DAX Index (Germany) | | 150 | | EUR | | 22,989 | | 06/10 | | 493 | |
EUR STOXX 50 Index (EMU) | | 2,100 | | EUR | | 57,708 | | 06/10 | | (2,511 | ) |
FTSE MIB Index (UK) | | 202 | | EUR | | 21,355 | | 06/10 | | (1,483 | ) |
FTSE-100 Index (UK) | | 1,240 | | GBP | | 68,294 | | 06/10 | | (1,576 | ) |
Hang Seng Index (Hong Kong) | | 81 | | HKD | | 84,572 | | 05/10 | | (80 | ) |
IBEX Plus Index (Spain) | | 61 | | EUR | | 6,302 | | 05/10 | | (845 | ) |
MSCI Singapore Index | | 10 | | SGD | | 701 | | 05/10 | | (4 | ) |
SPI 200 Index (Australia) | | 275 | | AUD | | 33,131 | | 06/10 | | (156 | ) |
TOPIX Index (Japan) | | 774 | | JPY | | 7,608,420 | | 06/10 | | 5,207 | |
| | | | | |
| Short Positions | | | | | | | | | | | |
Hang Seng Index (Hong Kong) | | 58 | | HKD | | 60,558 | | 05/10 | | 82 | |
Hang Seng Index (Hong Kong) | | 5 | | HKD | | 5,217 | | 06/10 | | (5 | ) |
OMX Index (Sweden) | | 973 | | SEK | | 102,214 | | 05/10 | | (293 | ) |
SPI 200 Index (Australia) | | 279 | | AUD | | 33,613 | | 06/10 | | 109 | |
Swiss Market Index (SMI) | | 269 | | CHF | | 17,724 | | 06/10 | | 526 | |
TOPIX Index (Japan) | | 181 | | JPY | | 1,779,230 | | 06/10 | | (988 | ) |
| | | | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | (6,368 | ) |
| | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 56 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Bank of America | | USD | | 458 | | AUD | | 500 | | 06/16/10 | | 2 | |
Bank of America | | USD | | 601 | | AUD | | 665 | | 06/16/10 | | 11 | |
Bank of America | | USD | | 998 | | AUD | | 1,100 | | 06/16/10 | | 15 | |
Bank of America | | USD | | 1,164 | | AUD | | 1,309 | | 06/16/10 | | 41 | |
Bank of America | | USD | | 1,280 | | AUD | | 1,409 | | 06/16/10 | | 17 | |
Bank of America | | USD | | 1,513 | | AUD | | 1,664 | | 06/16/10 | | 19 | |
Bank of America | | USD | | 1,550 | | AUD | | 1,686 | | 06/16/10 | | 2 | |
Bank of America | | USD | | 1,722 | | AUD | | 1,935 | | 06/16/10 | | 60 | |
Bank of America | | USD | | 2,319 | | AUD | | 2,521 | | 06/16/10 | | 2 | |
Bank of America | | USD | | 3,092 | | AUD | | 3,442 | | 06/16/10 | | 77 | |
Bank of America | | USD | | 1,336 | | EUR | | 1,000 | | 06/16/10 | | (5 | ) |
Bank of America | | USD | | 6,062 | | EUR | | 4,500 | | 06/16/10 | | (70 | ) |
Bank of America | | USD | | 5,092 | | GBP | | 3,400 | | 06/16/10 | | 110 | |
Bank of America | | USD | | 186 | | HKD | | 1,443 | | 06/17/10 | | — | |
Bank of America | | USD | | 258 | | HKD | | 2,000 | | 06/17/10 | | — | |
Bank of America | | USD | | 144 | | JPY | | 12,949 | | 06/16/10 | | (6 | ) |
Bank of America | | USD | | 1,061 | | JPY | | 100,000 | | 06/16/10 | | 4 | |
Bank of America | | USD | | 1,698 | | JPY | | 156,939 | | 06/16/10 | | (27 | ) |
Bank of America | | USD | | 2,395 | | JPY | | 216,409 | | 06/16/10 | | (90 | ) |
Bank of America | | USD | | 3,911 | | JPY | | 363,750 | | 06/16/10 | | (37 | ) |
Bank of America | | USD | | 5,398 | | JPY | | 500,000 | | 06/16/10 | | (73 | ) |
Bank of America | | USD | | 27 | | NZD | | 38 | | 06/16/10 | | 1 | |
Bank of America | | USD | | 266 | | NZD | | 381 | | 06/16/10 | | 11 | |
Bank of America | | USD | | 37 | | SGD | | 50 | | 06/16/10 | | — | |
Bank of America | | AUD | | 1,695 | | USD | | 1,548 | | 06/16/10 | | (12 | ) |
Bank of America | | AUD | | 3,098 | | USD | | 2,859 | | 06/16/10 | | 6 | |
Bank of America | | DKK | | 67 | | USD | | 12 | | 06/16/10 | | — | |
Bank of America | | HKD | | 3,000 | | USD | | 387 | | 06/17/10 | | — | |
Bank of America | | JPY | | 15,808 | | USD | | 168 | | 06/16/10 | | — | |
Bank of America | | JPY | | 116,143 | | USD | | 1,303 | | 06/16/10 | | 66 | |
Bank of America | | JPY | | 251,430 | | USD | | 2,788 | | 06/16/10 | | 110 | |
Bank of America | | JPY | | 595,337 | | USD | | 6,437 | | 06/16/10 | | 98 | |
Bank of America | | JPY | | 727,638 | | USD | | 7,715 | | 06/16/10 | | (33 | ) |
Bank of America | | NZD | | 140 | | USD | | 97 | | 06/16/10 | | (4 | ) |
Barclays Bank PLC | | USD | | 515 | | GBP | | 336 | | 05/03/10 | | — | |
Barclays Bank PLC | | USD | | 9,435 | | GBP | | 6,252 | | 06/16/10 | | 130 | |
Barclays Bank PLC | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | — | |
Barclays Bank PLC | | USD | | 1,025 | | JPY | | 96,373 | | 05/10/10 | | — | |
Barclays Bank PLC | | USD | | 10,472 | | JPY | | 933,143 | | 06/16/10 | | (534 | ) |
Barclays Bank PLC | | EUR | | 314 | | USD | | 416 | | 05/03/10 | | (2 | ) |
Barclays Bank PLC | | EUR | | 846 | | USD | | 1,120 | | 05/04/10 | | (6 | ) |
Brown Brother’s Harriman Co. | | USD | | 2,354 | | AUD | | 2,543 | | 05/03/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | USD | | 3,083 | | AUD | | 3,432 | | 06/16/10 | | 77 | |
Brown Brother’s Harriman Co. | | USD | | 758 | | CAD | | 765 | | 05/03/10 | | (5 | ) |
Brown Brother’s Harriman Co. | | USD | | 538 | | CHF | | 573 | | 06/16/10 | | (5 | ) |
Brown Brother’s Harriman Co. | | USD | | 675 | | CHF | | 724 | | 06/16/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | USD | | 36 | | DKK | | 195 | | 06/16/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | USD | | 406 | | EUR | | 308 | | 05/03/10 | | 4 | |
Brown Brother’s Harriman Co. | | USD | | 460 | | EUR | | 350 | | 05/03/10 | | 5 | |
Brown Brother’s Harriman Co. | | USD | | 704 | | EUR | | 535 | | 05/03/10 | | 8 | |
Brown Brother’s Harriman Co. | | USD | | 823 | | EUR | | 625 | | 05/03/10 | | 9 | |
Brown Brother’s Harriman Co. | | USD | | 2,798 | | EUR | | 2,126 | | 05/03/10 | | 32 | |
Brown Brother’s Harriman Co. | | USD | | 5,914 | | EUR | | 4,492 | | 05/03/10 | | 67 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 57 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Brown Brother’s Harriman Co. | | USD | | 1,965 | | EUR | | 1,484 | | 05/04/10 | | 10 | |
Brown Brother’s Harriman Co. | | USD | | 4,108 | | EUR | | 3,000 | | 06/16/10 | | (113 | ) |
Brown Brother’s Harriman Co. | | USD | | 5,471 | | EUR | | 4,015 | | 06/16/10 | | (124 | ) |
Brown Brother’s Harriman Co. | | USD | | 368 | | GBP | | 242 | | 05/04/10 | | 3 | |
Brown Brother’s Harriman Co. | | USD | | 5,895 | | GBP | | 3,882 | | 05/04/10 | | 45 | |
Brown Brother’s Harriman Co. | | USD | | 1,994 | | GBP | | 1,302 | | 05/05/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | USD | | 3,017 | | GBP | | 2,000 | | 06/16/10 | | 43 | |
Brown Brother’s Harriman Co. | | USD | | 6,740 | | GBP | | 4,424 | | 06/16/10 | | 27 | |
Brown Brother’s Harriman Co. | | USD | | 70 | | HKD | | 542 | | 06/17/10 | | — | |
Brown Brother’s Harriman Co. | | USD | | 258 | | HKD | | 2,000 | | 06/17/10 | | — | |
Brown Brother’s Harriman Co. | | USD | | 214 | | HUF | | 43,638 | | 05/03/10 | | 2 | |
Brown Brother’s Harriman Co. | | USD | | 4,990 | | JPY | | 469,407 | | 05/10/10 | | 7 | |
Brown Brother’s Harriman Co. | | USD | | 2,263 | | JPY | | 200,000 | | 06/16/10 | | (133 | ) |
Brown Brother’s Harriman Co. | | USD | | 187 | | MXN | | 2,302 | | 05/03/10 | | — | |
Brown Brother’s Harriman Co. | | USD | | 1,716 | | NOK | | 10,119 | | 06/16/10 | | (4 | ) |
Brown Brother’s Harriman Co. | | USD | | 5,027 | | NOK | | 29,574 | | 06/16/10 | | (23 | ) |
Brown Brother’s Harriman Co. | | USD | | 3,124 | | SEK | | 22,334 | | 06/16/10 | | (40 | ) |
Brown Brother’s Harriman Co. | | USD | | 4,205 | | SEK | | 30,336 | | 06/16/10 | | (16 | ) |
Brown Brother’s Harriman Co. | | USD | | 39 | | SGD | | 55 | | 06/16/10 | | 1 | |
Brown Brother’s Harriman Co. | | AUD | | 2,543 | | USD | | 2,343 | | 06/16/10 | | 1 | |
Brown Brother’s Harriman Co. | | CHF | | 10 | | USD | | 10 | | 05/04/10 | | — | |
Brown Brother’s Harriman Co. | | CHF | | 22 | | USD | | 21 | | 05/04/10 | | — | |
Brown Brother’s Harriman Co. | | CHF | | 43 | | USD | | 39 | | 05/04/10 | | — | |
Brown Brother’s Harriman Co. | | CHF | | 22 | | USD | | 21 | | 05/05/10 | | — | |
Brown Brother’s Harriman Co. | | CHF | | 31 | | USD | | 29 | | 05/05/10 | | — | |
Brown Brother’s Harriman Co. | | CHF | | 70 | | USD | | 64 | | 05/05/10 | | — | |
Brown Brother’s Harriman Co. | | CHF | | 269 | | USD | | 249 | | 06/16/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | CHF | | 575 | | USD | | 544 | | 06/16/10 | | 10 | |
Brown Brother’s Harriman Co. | | EUR | | 76 | | USD | | 101 | | 05/03/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | EUR | | 146 | | USD | | 193 | | 05/03/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | EUR | | 158 | | USD | | 208 | | 05/03/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | EUR | | 188 | | USD | | 248 | | 05/03/10 | | (3 | ) |
Brown Brother’s Harriman Co. | | EUR | | 607 | | USD | | 799 | | 05/03/10 | | (9 | ) |
Brown Brother’s Harriman Co. | | EUR | | 4,262 | | USD | | 5,617 | | 05/03/10 | | (57 | ) |
Brown Brother’s Harriman Co. | | EUR | | 4,462 | | USD | | 5,875 | | 05/03/10 | | (67 | ) |
Brown Brother’s Harriman Co. | | EUR | | 937 | | USD | | 1,241 | | 05/04/10 | | (7 | ) |
Brown Brother’s Harriman Co. | | EUR | | 1,419 | | USD | | 1,880 | | 05/04/10 | | (10 | ) |
Brown Brother’s Harriman Co. | | EUR | | 322 | | USD | | 427 | | 05/05/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | EUR | | 522 | | USD | | 694 | | 05/05/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | EUR | | 1,441 | | USD | | 1,914 | | 05/05/10 | | (4 | ) |
Brown Brother’s Harriman Co. | | EUR | | 541 | | USD | | 727 | | 06/16/10 | | 6 | |
Brown Brother’s Harriman Co. | | EUR | | 2,453 | | USD | | 3,318 | | 06/16/10 | | 52 | |
Brown Brother’s Harriman Co. | | EUR | | 2,657 | | USD | | 3,617 | | 06/16/10 | | 79 | |
Brown Brother’s Harriman Co. | | GBP | | 14 | | USD | | 22 | | 05/04/10 | | — | |
Brown Brother’s Harriman Co. | | GBP | | 71 | | USD | | 107 | | 05/04/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | GBP | | 613 | | USD | | 938 | | 05/05/10 | | 1 | |
Brown Brother’s Harriman Co. | | GBP | | 461 | | USD | | 705 | | 05/06/10 | | — | |
Brown Brother’s Harriman Co. | | GBP | | 1,076 | | USD | | 1,613 | | 06/16/10 | | (33 | ) |
Brown Brother’s Harriman Co. | | GBP | | 1,500 | | USD | | 2,292 | | 06/16/10 | | (3 | ) |
Brown Brother’s Harriman Co. | | GBP | | 3,405 | | USD | | 5,069 | | 06/16/10 | | (140 | ) |
Brown Brother’s Harriman Co. | | GBP | | 3,846 | | USD | | 5,910 | | 06/16/10 | | 26 | |
Brown Brother’s Harriman Co. | | JPY | | 23,075 | | USD | | 245 | | 05/07/10 | | (1 | ) |
Brown Brother’s Harriman Co. | | JPY | | 424,941 | | USD | | 4,517 | | 05/10/10 | | (6 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| 58 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Brown Brother’s Harriman Co. | | JPY | | 182,636 | | USD | | 1,936 | | 06/16/10 | | (9 | ) |
Brown Brother’s Harriman Co. | | JPY | | 300,000 | | USD | | 3,196 | | 06/16/10 | | 1 | |
Brown Brother’s Harriman Co. | | NOK | | 29,669 | | USD | | 4,970 | | 06/16/10 | | (49 | ) |
Brown Brother’s Harriman Co. | | NZD | | 387 | | USD | | 271 | | 06/16/10 | | (9 | ) |
Brown Brother’s Harriman Co. | | SEK | | 14,446 | | USD | | 2,008 | | 06/16/10 | | 14 | |
Brown Brother’s Harriman Co. | | SGD | | 82 | | USD | | 59 | | 06/16/10 | | (1 | ) |
Credit Suisse First Boston | | USD | | 7,066 | | AUD | | 7,980 | | 06/16/10 | | 282 | |
Credit Suisse First Boston | | USD | | 246 | | CHF | | 266 | | 06/16/10 | | 1 | |
Credit Suisse First Boston | | USD | | 887 | | EUR | | 674 | | 05/03/10 | | 10 | |
Credit Suisse First Boston | | USD | | 636 | | EUR | | 479 | | 05/05/10 | | 2 | |
Credit Suisse First Boston | | USD | | 272 | | HKD | | 2,113 | | 06/17/10 | | — | |
Credit Suisse First Boston | | USD | | 248 | | JPY | | 22,097 | | 06/16/10 | | (13 | ) |
Credit Suisse First Boston | | USD | | 2,676 | | NOK | | 16,007 | | 06/16/10 | | 32 | |
Credit Suisse First Boston | | USD | | 15 | | NZD | | 22 | | 06/16/10 | | 1 | |
Credit Suisse First Boston | | USD | | 5,144 | | SEK | | 37,115 | | 06/16/10 | | (19 | ) |
Credit Suisse First Boston | | USD | | 45 | | SGD | | 63 | | 06/16/10 | | 1 | |
Credit Suisse First Boston | | DKK | | 11,826 | | USD | | 2,104 | | 05/05/10 | | (11 | ) |
Credit Suisse First Boston | | DKK | | 1,528 | | USD | | 277 | | 06/16/10 | | 4 | |
Credit Suisse First Boston | | EUR | | 2,215 | | USD | | 2,934 | | 05/03/10 | | (15 | ) |
Credit Suisse First Boston | | EUR | | 211 | | USD | | 281 | | 05/04/10 | | (1 | ) |
Credit Suisse First Boston | | EUR | | 6,057 | | USD | | 8,187 | | 06/16/10 | | 122 | |
Credit Suisse First Boston | | GBP | | 659 | | USD | | 983 | | 06/16/10 | | (26 | ) |
Deutsche Bank | | USD | | 908 | | AUD | | 1,000 | | 06/16/10 | | 12 | |
Deutsche Bank | | USD | | 911 | | AUD | | 1,000 | | 06/16/10 | | 10 | |
Deutsche Bank | | USD | | 1,782 | | AUD | | 1,960 | | 06/16/10 | | 23 | |
Deutsche Bank | | USD | | 4,048 | | AUD | | 4,533 | | 06/16/10 | | 126 | |
Deutsche Bank | | USD | | 7,088 | | AUD | | 7,980 | | 06/16/10 | | 259 | |
Deutsche Bank | | USD | | 145 | | CAD | | 148 | | 05/05/10 | | — | |
Deutsche Bank | | USD | | 246 | | CHF | | 266 | | 06/16/10 | | 1 | |
Deutsche Bank | | USD | | 4,027 | | EUR | | 3,000 | | 06/16/10 | | (32 | ) |
Deutsche Bank | | USD | | 4,062 | | EUR | | 3,000 | | 06/16/10 | | (68 | ) |
Deutsche Bank | | USD | | 6,784 | | EUR | | 5,000 | | 06/16/10 | | (126 | ) |
Deutsche Bank | | USD | | 21,047 | | EUR | | 15,404 | | 06/16/10 | | (534 | ) |
Deutsche Bank | | USD | | 1,502 | | GBP | | 1,000 | | 06/16/10 | | 28 | |
Deutsche Bank | | USD | | 2,265 | | GBP | | 1,500 | | 06/16/10 | | 30 | |
Deutsche Bank | | USD | | 6,741 | | GBP | | 4,424 | | 06/16/10 | | 27 | |
Deutsche Bank | | USD | | 9,432 | | GBP | | 6,252 | | 06/16/10 | | 133 | |
Deutsche Bank | | USD | | 26 | | HKD | | 205 | | 06/17/10 | | — | |
Deutsche Bank | | USD | | 258 | | HKD | | 2,000 | | 06/17/10 | | — | |
Deutsche Bank | | USD | | 272 | | HKD | | 2,113 | | 06/17/10 | | — | |
Deutsche Bank | | USD | | 515 | | HKD | | 4,000 | | 06/17/10 | | — | |
Deutsche Bank | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | (1 | ) |
Deutsche Bank | | USD | | 248 | | JPY | | 22,097 | | 06/16/10 | | (13 | ) |
Deutsche Bank | | USD | | 1,107 | | JPY | | 100,000 | | 06/16/10 | | (42 | ) |
Deutsche Bank | | USD | | 2,151 | | JPY | | 200,000 | | 06/16/10 | | (22 | ) |
Deutsche Bank | | USD | | 10,478 | | JPY | | 933,143 | | 06/16/10 | | (540 | ) |
Deutsche Bank | | USD | | 2,678 | | NOK | | 16,007 | | 06/16/10 | | 30 | |
Deutsche Bank | | USD | | 15 | | NZD | | 22 | | 06/16/10 | | 1 | |
Deutsche Bank | | USD | | 266 | | NZD | | 381 | | 06/16/10 | | 11 | |
Deutsche Bank | | USD | | 5,143 | | SEK | | 37,115 | | 06/16/10 | | (18 | ) |
Deutsche Bank | | USD | | 45 | | SGD | | 63 | | 06/16/10 | | 1 | |
Deutsche Bank | | AUD | | 848 | | USD | | 774 | | 06/16/10 | | (6 | ) |
Deutsche Bank | | AUD | | 1,500 | | USD | | 1,371 | | 06/16/10 | | (10 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 59 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Deutsche Bank | | AUD | | 4,647 | | USD | | 4,289 | | 06/16/10 | | 10 | |
Deutsche Bank | | DKK | | 34 | | USD | | 6 | | 06/16/10 | | — | |
Deutsche Bank | | DKK | | 1,528 | | USD | | 277 | | 06/16/10 | | 4 | |
Deutsche Bank | | EUR | | 1,000 | | USD | | 1,362 | | 06/16/10 | | 31 | |
Deutsche Bank | | EUR | | 3,000 | | USD | | 4,078 | | 06/16/10 | | 83 | |
Deutsche Bank | | EUR | | 4,000 | | USD | | 5,387 | | 06/16/10 | | 61 | |
Deutsche Bank | | EUR | | 6,057 | | USD | | 8,190 | | 06/16/10 | | 125 | |
Deutsche Bank | | GBP | | 659 | | USD | | 984 | | 06/16/10 | | (25 | ) |
Deutsche Bank | | GBP | | 1,000 | | USD | | 1,530 | | 06/16/10 | | — | |
Deutsche Bank | | HKD | | 3,000 | | USD | | 387 | | 06/17/10 | | — | |
Deutsche Bank | | JPY | | 100,000 | | USD | | 1,107 | | 06/16/10 | | 42 | |
Deutsche Bank | | JPY | | 122,841 | | USD | | 1,347 | | 06/16/10 | | 39 | |
Deutsche Bank | | JPY | | 182,636 | | USD | | 1,936 | | 06/16/10 | | (9 | ) |
Deutsche Bank | | JPY | | 300,000 | | USD | | 3,254 | | 06/16/10 | | 60 | |
Deutsche Bank | | NZD | | 397 | | USD | | 279 | | 06/16/10 | | (10 | ) |
Deutsche Bank | | SGD | | 105 | | USD | | 75 | | 06/16/10 | | (2 | ) |
HSBC | | USD | | 641 | | AUD | | 705 | | 06/16/10 | | 8 | |
HSBC | | USD | | 4,044 | | AUD | | 4,533 | | 06/16/10 | | 129 | |
HSBC | | USD | | 7,076 | | AUD | | 7,980 | | 06/16/10 | | 271 | |
HSBC | | USD | | 246 | | CHF | | 266 | | 06/16/10 | | 1 | |
HSBC | | USD | | 21,044 | | EUR | | 15,404 | | 06/16/10 | | (531 | ) |
HSBC | | USD | | 9,427 | | GBP | | 6,252 | | 06/16/10 | | 138 | |
HSBC | | USD | | 163 | | HKD | | 1,266 | | 06/17/10 | | — | |
HSBC | | USD | | 272 | | HKD | | 2,113 | | 06/17/10 | | — | |
HSBC | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | (1 | ) |
HSBC | | USD | | 248 | | JPY | | 22,097 | | 06/16/10 | | (13 | ) |
HSBC | | USD | | 10,466 | | JPY | | 933,143 | | 06/16/10 | | (528 | ) |
HSBC | | USD | | 2,676 | | NOK | | 16,007 | | 06/16/10 | | 32 | |
HSBC | | USD | | 15 | | NZD | | 22 | | 06/16/10 | | 1 | |
HSBC | | USD | | 5,144 | | SEK | | 37,115 | | 06/16/10 | | (18 | ) |
HSBC | | USD | | 45 | | SGD | | 63 | | 06/16/10 | | 1 | |
HSBC | | USD | | 143 | | SGD | | 199 | | 06/16/10 | | 2 | |
HSBC | | DKK | | 135 | | USD | | 25 | | 06/16/10 | | 1 | |
HSBC | | DKK | | 245 | | USD | | 45 | | 06/16/10 | | 1 | |
HSBC | | DKK | | 1,528 | | USD | | 277 | | 06/16/10 | | 4 | |
HSBC | | EUR | | 6,057 | | USD | | 8,189 | | 06/16/10 | | 124 | |
HSBC | | GBP | | 659 | | USD | | 983 | | 06/16/10 | | (25 | ) |
HSBC | | GBP | | 2,000 | | USD | | 2,996 | | 06/16/10 | | (63 | ) |
HSBC | | HKD | | 419 | | USD | | 54 | | 06/17/10 | | — | |
HSBC | | JPY | | 182,636 | | USD | | 1,936 | | 06/16/10 | | (9 | ) |
JP Morgan | | USD | | 860 | | EUR | | 649 | | 05/03/10 | | 4 | |
JP Morgan | | USD | | 961 | | EUR | | 732 | | 05/03/10 | | 14 | |
JP Morgan | | USD | | 21,055 | | EUR | | 15,404 | | 06/16/10 | | (542 | ) |
JP Morgan | | USD | | 184 | | GBP | | 121 | | 05/04/10 | | 1 | |
JP Morgan | | USD | | 466 | | GBP | | 307 | | 05/04/10 | | 4 | |
JP Morgan | | USD | | 9,444 | | GBP | | 6,252 | | 06/16/10 | | 120 | |
JP Morgan | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | — | |
JP Morgan | | USD | | 98 | | JPY | | 9,129 | | 05/06/10 | | (1 | ) |
JP Morgan | | USD | | 3,590 | | JPY | | 337,300 | | 05/06/10 | | 1 | |
JP Morgan | | USD | | 10,474 | | JPY | | 933,143 | | 06/16/10 | | (537 | ) |
JP Morgan | | EUR | | 4,470 | | USD | | 5,925 | | 05/04/10 | | (27 | ) |
JP Morgan | | JPY | | 200,000 | | USD | | 2,211 | | 06/16/10 | | 81 | |
Mellon Bank | | USD | | 4,046 | | AUD | | 4,533 | | 06/16/10 | | 128 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 60 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
Mellon Bank | | USD | | 21,062 | | EUR | | 15,404 | | 06/16/10 | | (549 | ) |
Mellon Bank | | USD | | 50 | | HKD | | 390 | | 06/17/10 | | — | |
Mellon Bank | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | — | |
Mellon Bank | | USD | | 40 | | SGD | | 56 | | 06/16/10 | | 1 | |
Mellon Bank | | AUD | | 2,481 | | USD | | 2,277 | | 06/16/10 | | (7 | ) |
Mellon Bank | | DKK | | 360 | | USD | | 65 | | 06/16/10 | | 1 | |
Morgan Stanley | | JPY | | 54,180 | | USD | | 583 | | 05/03/10 | | 6 | |
National Australia Bank LTD. | | USD | | 10 | | DKK | | 57 | | 06/16/10 | | — | |
National Australia Bank LTD. | | HKD | | 286 | | USD | | 37 | | 06/17/10 | | — | |
National Australia Bank LTD. | | SGD | | 119 | | USD | | 85 | | 06/16/10 | | (2 | ) |
Royal Bank of Canada | | USD | | 4,046 | | AUD | | 4,533 | | 06/16/10 | | 128 | |
Royal Bank of Canada | | USD | | 21,055 | | EUR | | 15,404 | | 06/16/10 | | (542 | ) |
Royal Bank of Canada | | USD | | 6,742 | | GBP | | 4,424 | | 06/16/10 | | 26 | |
Royal Bank of Canada | | AUD | | 1,000 | | USD | | 907 | | 06/16/10 | | (14 | ) |
Royal Bank of Canada | | EUR | | 3,000 | | USD | | 4,128 | | 06/16/10 | | 133 | |
Royal Bank of Canada | | HKD | | 2,000 | | USD | | 258 | | 06/17/10 | | — | |
Royal Bank of Scotland | | USD | | 1,699 | | AUD | | 1,919 | | 06/16/10 | | 68 | |
Royal Bank of Scotland | | USD | | 264 | | CAD | | 266 | | 05/04/10 | | (3 | ) |
Royal Bank of Scotland | | USD | | 53 | | CHF | | 57 | | 05/04/10 | | — | |
Royal Bank of Scotland | | USD | | 205 | | CHF | | 221 | | 05/05/10 | | — | |
Royal Bank of Scotland | | USD | | 1,610 | | CHF | | 1,726 | | 06/16/10 | | (5 | ) |
Royal Bank of Scotland | | USD | | 190 | | DKK | | 1,038 | | 06/16/10 | | (4 | ) |
Royal Bank of Scotland | | USD | | 411 | | EUR | | 309 | | 05/04/10 | | — | |
Royal Bank of Scotland | | USD | | 239 | | EUR | | 180 | | 05/05/10 | | — | |
Royal Bank of Scotland | | USD | | 633 | | EUR | | 475 | | 05/05/10 | | — | |
Royal Bank of Scotland | | USD | | 1,211 | | EUR | | 910 | | 05/05/10 | | 1 | |
Royal Bank of Scotland | | USD | | 1,464 | | EUR | | 1,100 | | 05/05/10 | | 1 | |
Royal Bank of Scotland | | USD | | 1,575 | | EUR | | 1,183 | | 05/05/10 | | 1 | |
Royal Bank of Scotland | | USD | | 2,479 | | EUR | | 1,863 | | 05/05/10 | | 1 | |
Royal Bank of Scotland | | USD | | 4,086 | | EUR | | 3,000 | | 06/16/10 | | (91 | ) |
Royal Bank of Scotland | | USD | | 6,294 | | EUR | | 4,613 | | 06/16/10 | | (151 | ) |
Royal Bank of Scotland | | USD | | 4,266 | | GBP | | 2,804 | | 06/16/10 | | 24 | |
Royal Bank of Scotland | | USD | | 483 | | HKD | | 3,746 | | 06/17/10 | | — | |
Royal Bank of Scotland | | USD | | 1,961 | | JPY | | 182,266 | | 06/16/10 | | (20 | ) |
Royal Bank of Scotland | | USD | | 2,218 | | JPY | | 200,000 | | 06/16/10 | | (88 | ) |
Royal Bank of Scotland | | USD | | 4,520 | | JPY | | 401,455 | | 06/16/10 | | (245 | ) |
Royal Bank of Scotland | | USD | | 141 | | MXN | | 1,722 | | 05/04/10 | | (1 | ) |
Royal Bank of Scotland | | USD | | 148 | | NOK | | 877 | | 06/16/10 | | 1 | |
Royal Bank of Scotland | | USD | | 5,026 | | NOK | | 29,574 | | 06/16/10 | | (23 | ) |
Royal Bank of Scotland | | USD | | 21 | | NZD | | 31 | | 06/16/10 | | 1 | |
Royal Bank of Scotland | | USD | | 47 | | SEK | | 343 | | 05/05/10 | | — | |
Royal Bank of Scotland | | USD | | 541 | | SEK | | 3,846 | | 06/16/10 | | (10 | ) |
Royal Bank of Scotland | | USD | | 1,462 | | SEK | | 10,577 | | 06/16/10 | | (2 | ) |
Royal Bank of Scotland | | USD | | 204 | | SGD | | 286 | | 06/16/10 | | 4 | |
Royal Bank of Scotland | | USD | | 300 | | SGD | | 422 | | 06/16/10 | | 8 | |
Royal Bank of Scotland | | AUD | | 645 | | USD | | 574 | | 06/16/10 | | (20 | ) |
Royal Bank of Scotland | | CHF | | 76 | | USD | | 70 | | 05/04/10 | | — | |
Royal Bank of Scotland | | CHF | | 527 | | USD | | 487 | | 05/04/10 | | (3 | ) |
Royal Bank of Scotland | | CHF | | 36 | | USD | | 34 | | 06/16/10 | | — | |
Royal Bank of Scotland | | DKK | | 298 | | USD | | 54 | | 06/16/10 | | 1 | |
Royal Bank of Scotland | | DKK | | 950 | | USD | | 173 | | 06/16/10 | | 3 | |
Royal Bank of Scotland | | DKK | | 4,617 | | USD | | 827 | | 06/16/10 | | 2 | |
Royal Bank of Scotland | | EUR | | 47 | | USD | | 63 | | 05/05/10 | | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 61 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Royal Bank of Scotland | | EUR | | 47 | | USD | | 63 | | 05/05/10 | | — | |
Royal Bank of Scotland | | EUR | | 84 | | USD | | 111 | | 05/05/10 | | — | |
Royal Bank of Scotland | | EUR | | 152 | | USD | | 202 | | 05/05/10 | | — | |
Royal Bank of Scotland | | EUR | | 213 | | USD | | 283 | | 05/05/10 | | — | |
Royal Bank of Scotland | | EUR | | 449 | | USD | | 598 | | 05/05/10 | | — | |
Royal Bank of Scotland | | EUR | | 8,778 | | USD | | 11,715 | | 06/16/10 | | 26 | |
Royal Bank of Scotland | | GBP | | 247 | | USD | | 378 | | 05/06/10 | | — | |
Royal Bank of Scotland | | HKD | | 864 | | USD | | 111 | | 06/17/10 | | — | |
Royal Bank of Scotland | | JPY | | 15,808 | | USD | | 168 | | 06/16/10 | | — | |
Royal Bank of Scotland | | JPY | | 17,962 | | USD | | 197 | | 06/16/10 | | 6 | |
Royal Bank of Scotland | | JPY | | 182,636 | | USD | | 1,937 | | 06/16/10 | | (8 | ) |
Royal Bank of Scotland | | JPY | | 461,256 | | USD | | 4,970 | | 06/16/10 | | 59 | |
Royal Bank of Scotland | | SEK | | 533 | | USD | | 74 | | 05/05/10 | | — | |
Royal Bank of Scotland | | SGD | | 238 | | USD | | 169 | | 06/16/10 | | (4 | ) |
Societe Generale | | USD | | 4,042 | | AUD | | 4,533 | | 06/16/10 | | 132 | |
Societe Generale | | USD | | 21,047 | | EUR | | 15,404 | | 06/16/10 | | (534 | ) |
Societe Generale | | USD | | 9,428 | | GBP | | 6,252 | | 06/16/10 | | 136 | |
Societe Generale | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | (1 | ) |
Societe Generale | | USD | | 10,472 | | JPY | | 933,143 | | 06/16/10 | | (535 | ) |
State Street Bank and Trust Company | | USD | | 114 | | AUD | | 124 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 928 | | AUD | | 1,000 | | 06/16/10 | | (7 | ) |
State Street Bank and Trust Company | | USD | | 4,046 | | AUD | | 4,533 | | 06/16/10 | | 128 | |
State Street Bank and Trust Company | | USD | | 3 | | BRL | | 4 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 127 | | BRL | | 219 | | 05/03/10 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 68 | | CHF | | 72 | | 06/16/10 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 160 | | CHF | | 169 | | 06/16/10 | | (2 | ) |
State Street Bank and Trust Company | | USD | | 164 | | CHF | | 176 | | 06/16/10 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 570 | | CHF | | 612 | | 06/16/10 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 110 | | DKK | | 616 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | USD | | 531 | | EUR | | 401 | | 05/03/10 | | 2 | |
State Street Bank and Trust Company | | USD | | 71 | | EUR | | 54 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 88 | | EUR | | 67 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 192 | | EUR | | 145 | | 05/04/10 | | 1 | |
State Street Bank and Trust Company | | USD | | 456 | | EUR | | 344 | | 05/04/10 | | 2 | |
State Street Bank and Trust Company | | USD | | 475 | | EUR | | 358 | | 05/04/10 | | 2 | |
State Street Bank and Trust Company | | USD | | 558 | | EUR | | 421 | | 05/04/10 | | 2 | |
State Street Bank and Trust Company | | USD | | 829 | | EUR | | 625 | | 05/04/10 | | 3 | |
State Street Bank and Trust Company | | USD | | 1,967 | | EUR | | 1,454 | | 06/16/10 | | (30 | ) |
State Street Bank and Trust Company | | USD | | 2,614 | | EUR | | 1,941 | | 06/16/10 | | (29 | ) |
State Street Bank and Trust Company | | USD | | 126 | | GBP | | 83 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 501 | | GBP | | 327 | | 05/05/10 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 152 | | GBP | | 99 | | 06/16/10 | | — | |
State Street Bank and Trust Company | | USD | | 850 | | GBP | | 565 | | 06/16/10 | | 14 | |
State Street Bank and Trust Company | | USD | | 3,037 | | GBP | | 2,000 | | 06/16/10 | | 22 | |
State Street Bank and Trust Company | | USD | | 3,773 | | GBP | | 2,448 | | 06/16/10 | | (28 | ) |
State Street Bank and Trust Company | | USD | | 6,724 | | GBP | | 4,413 | | 06/16/10 | | 26 | |
State Street Bank and Trust Company | | USD | | 9,431 | | GBP | | 6,252 | | 06/16/10 | | 133 | |
State Street Bank and Trust Company | | USD | | 126 | | HKD | | 982 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 232 | | HKD | | 1,799 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 380 | | HKD | | 2,948 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 651 | | HKD | | 5,051 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 239 | | HKD | | 1,851 | | 06/17/10 | | — | |
State Street Bank and Trust Company | | USD | | 125 | | HUF | | 25,076 | | 05/04/10 | | (1 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| 62 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
State Street Bank and Trust Company | | USD | | 211 | | IDR | | 1,899,236 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 797 | | JPY | | 74,518 | | 05/06/10 | | (4 | ) |
State Street Bank and Trust Company | | USD | | 1,431 | | JPY | | 133,705 | | 05/06/10 | | (7 | ) |
State Street Bank and Trust Company | | USD | | 1,926 | | JPY | | 179,978 | | 05/06/10 | | (10 | ) |
State Street Bank and Trust Company | | USD | | 237 | | JPY | | 22,233 | | 05/07/10 | | — | |
State Street Bank and Trust Company | | USD | | 1,000 | | JPY | | 94,357 | | 05/10/10 | | 4 | |
State Street Bank and Trust Company | | USD | | 700 | | JPY | | 65,000 | | 06/16/10 | | (7 | ) |
State Street Bank and Trust Company | | USD | | 3,229 | | JPY | | 300,000 | | 06/16/10 | | (34 | ) |
State Street Bank and Trust Company | | USD | | 10,472 | | JPY | | 933,143 | | 06/16/10 | | (534 | ) |
State Street Bank and Trust Company | | USD | | 3,305 | | KRW | | 3,658,268 | | 05/03/10 | | (4 | ) |
State Street Bank and Trust Company | | USD | �� | 2,294 | | NOK | | 13,517 | | 05/05/10 | | (3 | ) |
State Street Bank and Trust Company | | USD | | 5,030 | | NOK | | 29,568 | | 06/16/10 | | (28 | ) |
State Street Bank and Trust Company | | USD | | 254 | | SEK | | 1,836 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 3,125 | | SEK | | 22,334 | | 06/16/10 | | (41 | ) |
State Street Bank and Trust Company | | USD | | 4,208 | | SEK | | 30,335 | | 06/16/10 | | (19 | ) |
State Street Bank and Trust Company | | USD | | 21 | | SGD | | 29 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | AUD | | 4,647 | | USD | | 4,288 | | 06/16/10 | | 9 | |
State Street Bank and Trust Company | | CHF | | 1,655 | | USD | | 1,537 | | 05/04/10 | | (1 | ) |
State Street Bank and Trust Company | | CHF | | 47 | | USD | | 44 | | 06/16/10 | | — | |
State Street Bank and Trust Company | | CHF | | 123 | | USD | | 116 | | 06/16/10 | | 2 | |
State Street Bank and Trust Company | | EUR | | 64 | | USD | | 84 | | 05/03/10 | | (1 | ) |
State Street Bank and Trust Company | | EUR | | 196 | | USD | | 258 | | 05/03/10 | | (3 | ) |
State Street Bank and Trust Company | | EUR | | 323 | | USD | | 425 | | 05/03/10 | | (5 | ) |
State Street Bank and Trust Company | | EUR | | 16 | | USD | | 21 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | EUR | | 37 | | USD | | 49 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | EUR | | 327 | | USD | | 433 | | 05/04/10 | | (2 | ) |
State Street Bank and Trust Company | | EUR | | 362 | | USD | | 480 | | 05/04/10 | | (2 | ) |
State Street Bank and Trust Company | | EUR | | 400 | | USD | | 530 | | 05/04/10 | | (3 | ) |
State Street Bank and Trust Company | | EUR | | 678 | | USD | | 927 | | 06/16/10 | | 24 | |
State Street Bank and Trust Company | | EUR | | 843 | | USD | | 1,152 | | 06/16/10 | | 29 | |
State Street Bank and Trust Company | | EUR | | 2,092 | | USD | | 2,826 | | 06/16/10 | | 40 | |
State Street Bank and Trust Company | | EUR | | 2,333 | | USD | | 3,119 | | 06/16/10 | | 12 | |
State Street Bank and Trust Company | | EUR | | 2,594 | | USD | | 3,489 | | 07/15/10 | | 34 | |
State Street Bank and Trust Company | | GBP | | 69 | | USD | | 105 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | GBP | | 135 | | USD | | 206 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | GBP | | 178 | | USD | | 273 | | 05/05/10 | | 1 | |
State Street Bank and Trust Company | | GBP | | 212 | | USD | | 324 | | 05/05/10 | | 1 | |
State Street Bank and Trust Company | | GBP | | 297 | | USD | | 456 | | 05/05/10 | | 1 | |
State Street Bank and Trust Company | | GBP | | 358 | | USD | | 547 | | 05/05/10 | | (1 | ) |
State Street Bank and Trust Company | | GBP | | 701 | | USD | | 1,076 | | 05/05/10 | | 2 | |
State Street Bank and Trust Company | | GBP | | 1,119 | | USD | | 1,716 | | 05/05/10 | | 4 | |
State Street Bank and Trust Company | | GBP | | 666 | | USD | | 998 | | 06/16/10 | | (20 | ) |
State Street Bank and Trust Company | | HKD | | 2,107 | | USD | | 271 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | HKD | | 1,826 | | USD | | 235 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | HKD | | 5,341 | | USD | | 688 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | HKD | | 5,051 | | USD | | 651 | | 06/17/10 | | — | |
State Street Bank and Trust Company | | JPY | | 86,844 | | USD | | 924 | | 05/07/10 | | (1 | ) |
State Street Bank and Trust Company | | JPY | | 102,812 | | USD | | 1,094 | | 05/07/10 | | (1 | ) |
State Street Bank and Trust Company | | JPY | | 5,521 | | USD | | 59 | | 05/10/10 | | — | |
State Street Bank and Trust Company | | JPY | | 5,984 | | USD | | 63 | | 05/10/10 | | — | |
State Street Bank and Trust Company | | NOK | | 8,777 | | USD | | 1,468 | | 06/16/10 | | (17 | ) |
State Street Bank and Trust Company | | NOK | | 29,669 | | USD | | 4,971 | | 06/16/10 | | (48 | ) |
State Street Bank and Trust Company | | SEK | | 717 | | USD | | 99 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | SGD | | 172 | | USD | | 125 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | SGD | | 229 | | USD | | 167 | | 05/03/10 | | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 63 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
State Street Bank and Trust Company | | SGD | | 298 | | USD | | 218 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | SGD | | 320 | | USD | | 234 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | SGD | | 323 | | USD | | 236 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | SGD | | 415 | | USD | | 303 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | SGD | | 29 | | USD | | 21 | | 06/16/10 | | — | |
UBS | | USD | | 7,086 | | AUD | | 7,980 | | 06/16/10 | | 261 | |
UBS | | USD | | 222 | | CHF | | 241 | | 05/03/10 | | 3 | |
UBS | | USD | | 246 | | CHF | | 266 | | 06/16/10 | | 1 | |
UBS | | USD | | 98 | | DKK | | 540 | | 06/16/10 | | (1 | ) |
UBS | | USD | | 305 | | EUR | | 232 | | 05/03/10 | | 4 | |
UBS | | USD | | 272 | | HKD | | 2,113 | | 06/17/10 | | — | |
UBS | | USD | | 248 | | JPY | | 22,097 | | 06/16/10 | | (13 | ) |
UBS | | USD | | 5,094 | | JPY | | 470,817 | | 06/16/10 | | (80 | ) |
UBS | | USD | | 2,677 | | NOK | | 16,007 | | 06/16/10 | | 31 | |
UBS | | USD | | 15 | | NZD | | 22 | | 06/16/10 | | 1 | |
UBS | | USD | | 5,144 | | SEK | | 37,115 | | 06/16/10 | | (19 | ) |
UBS | | USD | | 45 | | SGD | | 63 | | 06/16/10 | | 1 | |
UBS | | AUD | | 848 | | USD | | 774 | | 06/16/10 | | (6 | ) |
UBS | | DKK | | 1,528 | | USD | | 277 | | 06/16/10 | | 4 | |
UBS | | EUR | | 1,234 | | USD | | 1,634 | | 05/04/10 | | (9 | ) |
UBS | | EUR | | 6,057 | | USD | | 8,193 | | 06/16/10 | | 127 | |
UBS | | GBP | | 659 | | USD | | 984 | | 06/16/10 | | (25 | ) |
UBS | | GBP | | 3,961 | | USD | | 6,016 | | 06/16/10 | | (44 | ) |
UBS | | HKD | | 1,812 | | USD | | 234 | | 06/17/10 | | — | |
UBS | | JPY | | 122,841 | | USD | | 1,346 | | 06/16/10 | | 38 | |
UBS | | NZD | | 397 | | USD | | 279 | | 06/16/10 | | (9 | ) |
UBS | | SGD | | 105 | | USD | | 76 | | 06/16/10 | | — | |
Westpac Banking Corporation | | USD | | 582 | | AUD | | 654 | | 06/16/10 | | 20 | |
Westpac Banking Corporation | | USD | | 640 | | AUD | | 705 | | 06/16/10 | | 9 | |
Westpac Banking Corporation | | USD | | 1,161 | | AUD | | 1,261 | | 06/16/10 | | — | |
Westpac Banking Corporation | | USD | | 4,044 | | AUD | | 4,533 | | 06/16/10 | | 129 | |
Westpac Banking Corporation | | USD | | 7,068 | | AUD | | 7,980 | | 06/16/10 | | 279 | |
Westpac Banking Corporation | | USD | | 246 | | CHF | | 266 | | 06/16/10 | | 2 | |
Westpac Banking Corporation | | USD | | 21,050 | | EUR | | 15,404 | | 06/16/10 | | (537 | ) |
Westpac Banking Corporation | | USD | | 9,435 | | GBP | | 6,252 | | 06/16/10 | | 129 | |
Westpac Banking Corporation | | USD | | 272 | | HKD | | 2,113 | | 06/17/10 | | — | |
Westpac Banking Corporation | | USD | | 1,510 | | HKD | | 11,714 | | 06/17/10 | | (1 | ) |
Westpac Banking Corporation | | USD | | 248 | | JPY | | 22,097 | | 06/16/10 | | (13 | ) |
Westpac Banking Corporation | | USD | | 787 | | JPY | | 71,170 | | 06/16/10 | | (30 | ) |
Westpac Banking Corporation | | USD | | 10,472 | | JPY | | 933,143 | | 06/16/10 | | (535 | ) |
Westpac Banking Corporation | | USD | | 2,674 | | NOK | | 16,007 | | 06/16/10 | | 34 | |
Westpac Banking Corporation | | USD | | 15 | | NZD | | 22 | | 06/16/10 | | 1 | |
Westpac Banking Corporation | | USD | | 266 | | NZD | | 381 | | 06/16/10 | | 11 | |
Westpac Banking Corporation | | USD | | 5,139 | | SEK | | 37,115 | | 06/16/10 | | (14 | ) |
Westpac Banking Corporation | | USD | | 45 | | SGD | | 63 | | 06/16/10 | | 1 | |
Westpac Banking Corporation | | AUD | | 3,098 | | USD | | 2,860 | | 06/16/10 | | 7 | |
Westpac Banking Corporation | | DKK | | 1,528 | | USD | | 277 | | 06/16/10 | | 4 | |
Westpac Banking Corporation | | EUR | | 3,000 | | USD | | 4,059 | | 06/16/10 | | 64 | |
Westpac Banking Corporation | | EUR | | 6,057 | | USD | | 8,185 | | 06/16/10 | | 119 | |
Westpac Banking Corporation | | GBP | | 659 | | USD | | 984 | | 06/16/10 | | (25 | ) |
Westpac Banking Corporation | | JPY | | 122,297 | | USD | | 1,341 | | 06/16/10 | | 39 | |
Westpac Banking Corporation | | JPY | | 237,699 | | USD | | 2,665 | | 06/16/10 | | 134 | |
Westpac Banking Corporation | | JPY | | 365,273 | | USD | | 3,872 | | 06/16/10 | | (18 | ) |
| | | | | | | | | | | | | |
| | | | |
Total Unrealizd Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | (4,062 | ) |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 64 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | |
Australia | | $ | 3,875 | | $ | 169,947 | | $ | — | | $ | 173,822 | | 3.8 | |
Austria | | | — | | | 6,833 | | | — | | | 6,833 | | 0.1 | |
Belgium | | | — | | | 30,917 | | | — | | | 30,917 | | 0.7 | |
Bermuda | | | 7,956 | | | 59,873 | | | — | | | 67,829 | | 1.5 | |
Brazil | | | 71,850 | | | — | | | — | | | 71,850 | | 1.6 | |
Canada | | | 129,113 | | | — | | | — | | | 129,113 | | 2.8 | |
Cayman Islands | | | 14,621 | | | 14,139 | | | — | | | 28,760 | | 0.6 | |
China | | | — | | | 24,148 | | | — | | | 24,148 | | 0.5 | |
Czech Republic | | | — | | | 4,164 | | | — | | | 4,164 | | 0.1 | |
Denmark | | | — | | | 55,962 | | | — | | | 55,962 | | 1.2 | |
Finland | | | — | | | 41,613 | | | — | | | 41,613 | | 0.9 | |
France | | | — | | | 441,508 | | | — | | | 441,508 | | 9.5 | |
Germany | | | — | | | 297,184 | | | — | | | 297,184 | | 6.4 | |
Guernsey | | | 6,433 | | | — | | | — | | | 6,433 | | 0.1 | |
Hong Kong | | | — | | | 44,174 | | | — | | | 44,174 | | 1.0 | |
Hungary | | | — | | | 6,705 | | | | | | 6,705 | | 0.1 | |
India | | | 29,496 | | | 19,639 | | | — | | | 49,135 | | 1.1 | |
Indonesia | | | — | | | 11,140 | | | — | | | 11,140 | | 0.2 | |
Ireland | | | 31,263 | | | — | | | — | | | 31,263 | | 0.7 | |
Israel | | | 30,513 | | | 1,971 | | | — | | | 32,484 | | 0.7 | |
Italy | | | — | | | 73,814 | | | — | | | 73,814 | | 1.6 | |
Japan | | | 14,239 | | | 760,388 | | | — | | | 774,627 | | 16.7 | |
Kazakhstan | | | 2,045 | | | — | | | — | | | 2,045 | | — | * |
Luxembourg | | | 772 | | | 6,196 | | | — | | | 6,968 | | 0.2 | |
Malaysia | | | — | | | 3,652 | | | — | | | 3,652 | | 0.1 | |
Mauritius | | | — | | | 1,829 | | | — | | | 1,829 | | — | * |
Mexico | | | 8,249 | | | — | | | — | | | 8,249 | | 0.2 | |
Netherlands | | | 25,949 | | | 160,851 | | | — | | | 186,800 | | 4.0 | |
Netherlands Antilles | | | — | | | 341 | | | — | | | 341 | | — | * |
New Zealand | | | — | | | 5,247 | | | — | | | 5,247 | | 0.1 | |
Norway | | | 2,291 | | | 11,654 | | | — | | | 13,945 | | 0.3 | |
Russia | | | 4,069 | | | 16,471 | | | — | | | 20,540 | | 0.4 | |
Singapore | | | 19,885 | | | 38,896 | | | — | | | 58,781 | | 1.3 | |
South Africa | | | — | | | 9,846 | | | — | | | 9,846 | | 0.2 | |
South Korea | | | 750 | | | 59,615 | | | — | | | 60,365 | | 1.3 | |
Spain | | | — | | | 136,557 | | | — | | | 136,557 | | 2.9 | |
Sweden | | | — | | | 35,604 | | | — | | | 35,604 | | 0.8 | |
Switzerland | | | 23,067 | | | 341,943 | | | — | | | 365,010 | | 7.9 | |
Taiwan | | | 6,285 | | | 23,896 | | | — | | | 30,181 | | 0.7 | |
Turkey | | | — | | | 8,343 | | | — | | | 8,343 | | 0.2 | |
United Kingdom | | | 52,862 | | | 755,257 | | | 257 | | | 808,376 | | 17.4 | |
United States | | | 17,815 | | | 10,620 | | | — | | | 28,435 | | 0.6 | |
Preferred Stocks | | | 7,741 | | | 7,952 | | | — | | | 15,693 | | 0.4 | |
Warrants & Rights | | | 5,592 | | | — | | | 2,350 | | | 7,942 | | 0.2 | |
Short-Term Investments | | | — | | | 362,931 | | | — | | | 362,931 | | 7.8 | |
Other Securities | | | — | | | 261,418 | | | — | | | 261,418 | | 5.6 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 516,731 | | | 4,323,238 | | | 2,607 | | | 4,842,576 | | 104.5 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (4.5 | ) |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 65 |
Russell Investment Company
Russell International Developed Markets Fund
Presentation of Portfolio Holdings, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | Total | | |
| | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | |
Futures Contracts | | (6,368 | ) | | — | | | — | | (6,368 | ) | | (0.1 | ) |
Foreign Currency Exchange Contracts | | (18 | ) | | (4,044 | ) | | — | | (4,062 | ) | | (0.1 | ) |
| | | | | | | | | | | | | | |
Total Other Financial Instruments** | | (6,386 | ) | | (4,044 | ) | | — | | (10,430 | ) | | | |
| | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending April 30, 2010 were less than 1% of net assets.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | Foreign
Currency
Contracts |
| | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | | $ | 6,701 |
Daily variation margin on futures contracts* | | | 6,417 | | | — |
| | | | | | |
Total | | $ | 6,417 | | $ | 6,701 |
| | | | | | |
| | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | $ | 10,763 |
Daily variation margin on futures contracts* | | | 12,785 | | | — |
| | | | | | |
Total | | $ | 12,785 | | $ | 10,763 |
| | | | | | |
| | | | | | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | Foreign
Currency
Contracts | |
| | | | | | | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | |
Futures contracts | | $ | 18,508 | | $ | — | |
Foreign currency-related transactions | | | — | | | 8,410 | |
| | | | | | | |
Total | | $ | 18,508 | | $ | 8,410 | |
| | | | | | | |
| | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | |
Futures contracts | | $ | 4,052 | | $ | — | |
Foreign currency-related transactions | | | — | | | (16,948 | ) |
| | | | | | | |
Total | | $ | 4,052 | | $ | (16,948 | ) |
| | | | | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 66 | | Russell International Developed Markets Fund |
Russell Investment Company
Russell Global Equity Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,119.50 | | $ | 1,017.41 |
Expenses Paid During Period* | | $ | 7.83 | | $ | 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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,116.10 | | $ | 1,013.69 |
Expenses Paid During Period* | | $ | 11.75 | | $ | 11.18 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.24% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,118.80 | | $ | 1,017.41 |
Expenses Paid During Period* | | $ | 7.83 | | $ | 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). |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,120.80 | | $ | 1,018.65 |
Expenses Paid During Period* | | $ | 6.52 | | $ | 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). |
| | |
| Russell Global Equity Fund | | 67 |
Russell Investment Company
Russell Global Equity Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,120.80 | | $ | 1,019.54 |
Expenses Paid During Period* | | $ | 5.57 | | $ | 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). |
| | |
| 68 | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 92.5% | | | | |
| Australia - 0.2% | | | | |
Minara Resources, Ltd. (Æ)(Ñ) | | 1,473,611 | | 1,192 |
Mineral Deposits, Ltd. (Æ)(Ñ) | | 654,200 | | 578 |
Newcrest Mining, Ltd. | | 91,421 | | 2,748 |
| | | | |
| | | | 4,518 |
| | | | |
| | |
| Brazil - 1.9% | | | | |
BM&F Bovespa SA | | 563,766 | | 3,730 |
Centrais Eletricas Brasileiras SA - ADR | | 302,997 | | 5,330 |
Cia de Saneamento Basico do Estado de Sao Paulo - ADR (Æ)(Ñ) | | 60,000 | | 2,361 |
Itau Unibanco Holding SA - ADR | | 242,600 | | 5,259 |
Petroleo Brasileiro SA - ADR | | 273,800 | | 10,388 |
Tam SA - ADR (Æ)(Ñ) | | 194,100 | | 3,430 |
Vale SA Class B | | 194,200 | | 5,226 |
| | | | |
| | | | 35,724 |
| | | | |
| | |
| Canada - 3.0% | | | | |
Barrick Gold Corp. | | 287,200 | | 12,508 |
Cameco Corp. | | 324,100 | | 7,976 |
Canadian National Railway Co. | | 270,070 | | 16,147 |
Cenovus Energy, Inc. | | 70,500 | | 2,066 |
Eastern Platinum, Ltd. (Æ) | | 1,238,975 | | 1,735 |
Gabriel Resources, Ltd. (Æ) | | 1,205,700 | | 4,973 |
Suncor Energy, Inc. | | 87,600 | | 2,993 |
Teck Resources, Ltd. Class B | | 127,900 | | 5,016 |
Uranium Participation Corp. (Æ) | | 249,400 | | 1,468 |
Westjet Airlines, Ltd. (Æ)(Þ) | | 31,200 | | 415 |
| | | | |
| | | | 55,297 |
| | | | |
| | |
| Cayman Islands - 1.0% | | | | |
Baidu, Inc. - ADR (Æ) | | 9,700 | | 6,686 |
Hengan International Group Co., Ltd. | | 420,500 | | 3,222 |
Hutchison Telecommunications International, Ltd. | | 6,192,100 | | 1,283 |
NagaCorp, Ltd. | | 10,056,000 | | 1,306 |
Tencent Holdings, Ltd. | | 257,100 | | 5,285 |
| | | | |
| | | | 17,782 |
| | | | |
| | |
| China - 0.2% | | | | |
PetroChina Co., Ltd. - ADR | | 18,300 | | 2,107 |
Sinopharm Group Co. | | 490,400 | | 2,206 |
| | | | |
| | | | 4,313 |
| | | | |
| | |
| Finland - 0.2% | | | | |
UPM-Kymmene OYJ | | 207,050 | | 2,989 |
| | | | |
| | |
| France - 4.5% | | | | |
Areva SA | | 4,250 | | 2,099 |
Danone (Ñ) | | 226,480 | | 13,368 |
Electric De France SA | | 41,000 | | 2,206 |
Legrand SA (Ñ) | | 471,829 | | 15,306 |
LVMH Moet Hennessy Louis Vuitton SA (Ñ) | | 130,731 | | 14,945 |
Pernod-Ricard SA (Ñ) | | 153,616 | | 13,069 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Publicis Groupe SA (Ñ) | | 181,300 | | 8,021 |
Renault SA (Æ) | | 121,725 | | 5,723 |
Thales SA | | 212,000 | | 7,890 |
| | | | |
| | | | 82,627 |
| | | | |
| | |
| Germany - 4.5% | | | | |
Allianz SE | | 98,200 | | 11,273 |
Bayer AG (Ñ) | | 65,963 | | 4,220 |
Daimler AG (Æ)(Ñ) | | 298,300 | | 15,393 |
Deutsche Boerse AG | | 68,907 | | 5,368 |
Deutsche Telekom AG - ADR | | 205,500 | | 2,464 |
Linde AG (Ñ) | | 162,189 | | 19,394 |
Merck KGaA (Ñ) | | 106,794 | | 8,775 |
SAP AG | | 236,300 | | 11,384 |
Siemens AG | | 58,000 | | 5,734 |
| | | | |
| | | | 84,005 |
| | | | |
| | |
| Hong Kong - 0.4% | | | | |
China Overseas Land & Investment, Ltd. (Ñ) | | 2,712,000 | | 5,255 |
China Unicom Hong Kong, Ltd. - ADR | | 237,200 | | 2,949 |
| | | | |
| | | | 8,204 |
| | | | |
| | |
| India - 1.2% | | | | |
Container Corp. of India | | 98,879 | | 2,876 |
GMR Infrastructure, Ltd. (Æ) | | 3,820,000 | | 5,641 |
Kotak Mahindra Bank, Ltd. | | 176,732 | | 2,890 |
Reliance Industries, Ltd. | | 268,535 | | 6,210 |
Tata Motors, Ltd. - ADR | | 104,177 | | 1,398 |
United Spirits, Ltd. | | 102,929 | | 2,902 |
| | | | |
| | | | 21,917 |
| | | | |
| | |
| Indonesia - 0.2% | | | | |
Telekomunikasi Indonesia Tbk PT - ADR | | 79,420 | | 2,757 |
| | | | |
| | |
| Ireland - 2.3% | | | | |
Accenture PLC Class A | | 872,110 | | 38,059 |
Elan Corp. PLC - ADR (Æ)(Ñ) | | 352,700 | | 2,370 |
Governor & Co. of the Bank of Ireland (The) (Æ) | | 416,300 | | 905 |
Governor & Co. of the Bank of Ireland (The) (Æ)(Ñ) | | 474,800 | | 1,050 |
| | | | |
| | | | 42,384 |
| | | | |
| | |
| Italy - 1.1% | | | | |
ERG SpA | | 405,400 | | 5,595 |
Intesa Sanpaolo SpA | | 3,457,460 | | 11,379 |
Telecom Italia SpA | | 2,453,000 | | 2,771 |
| | | | |
| | | | 19,745 |
| | | | |
| | |
| Japan - 7.4% | | | | |
77 Bank, Ltd. (The) | | 257,000 | | 1,463 |
Aeon Mall Co., Ltd. | | 268,400 | | 5,682 |
Canon, Inc. | | 89,000 | | 4,063 |
Daiwa Securities Group, Inc. | | 3,072,200 | | 15,910 |
Fields Corp. (Ñ) | | 580 | | 687 |
| | |
| Russell Global Equity Fund | | 69 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Futaba Corp. | | 63,800 | | 1,297 |
Hakuhodo DY Holdings, Inc. (Ñ) | | 11,470 | | 651 |
JX Holdings, Inc. (Æ) | | 428,000 | | 2,388 |
Kao Corp. | | 222,700 | | 5,391 |
Kirin Holdings Co., Ltd. | | 141,000 | | 2,025 |
Mitsubishi Corp. | | 256,700 | | 6,091 |
Mitsui & Co., Ltd. | | 107,700 | | 1,625 |
MS&AD Insurance Group Holdings | | 103,400 | | 2,970 |
Nippon Telegraph & Telephone Corp. | | 293,200 | | 11,901 |
Nissin Foods Holdings Co., Ltd. (Ñ) | | 40,300 | | 1,352 |
Nomura Holdings, Inc. | | 482,500 | | 3,328 |
Obayashi Corp. (Ñ) | | 289,000 | | 1,290 |
Panasonic Corp. | | 463,700 | | 6,779 |
Rohm Co., Ltd. | | 146,000 | | 10,858 |
Sankyo Co., Ltd. (Ñ) | | 40,600 | | 1,866 |
Sanshin Electronics Co., Ltd. | | 31,700 | | 297 |
Sekisui House, Ltd. | | 530,000 | | 5,058 |
Seven & I Holdings Co., Ltd. (Ñ) | | 119,600 | | 3,054 |
Sony Corp. | | 88,600 | | 3,029 |
Sumitomo Osaka Cement Co., Ltd. (Ñ) | | 1,627,000 | | 3,126 |
Sumitomo Trust & Banking Co., Ltd. (The) | | 694,000 | | 4,210 |
Takeda Pharmaceutical Co., Ltd. (Ñ) | | 58,500 | | 2,518 |
Toppan Printing Co., Ltd. (Ñ) | | 308,000 | | 2,813 |
Toshiba Corp. | | 981,000 | | 5,625 |
Toyota Motor Corp. | | 499,600 | | 19,295 |
TV Asahi Corp. | | 725 | | 1,184 |
| | | | |
| | | | 137,826 |
| | | | |
| | |
| Luxembourg - 0.2% | | | | |
Stolt-Nielsen SA | | 237,300 | | 3,727 |
| | | | |
| | |
| Mexico - 1.5% | | | | |
America Movil SAB de CV Series L | | 251,900 | | 12,968 |
Fomento Economico Mexicano SAB de CV - ADR | | 153,600 | | 7,270 |
Grupo Financiero Banorte SAB de CV | | 647,000 | | 2,686 |
Grupo Televisa SA - ADR | | 266,000 | | 5,528 |
| | | | |
| | | | 28,452 |
| | | | |
| | |
| Netherlands - 2.4% | | | | |
Akzo Nobel NV (Ñ) | | 118,800 | | 6,983 |
ASML Holding NV | | 133,665 | | 4,357 |
Heineken NV (Ñ) | | 411,445 | | 19,099 |
TNT NV | | 476,402 | | 14,624 |
| | | | |
| | | | 45,063 |
| | | | |
| | |
| Netherlands Antilles - 0.3% | | | | |
Schlumberger, Ltd. (Ñ) | | 73,200 | | 5,228 |
| | | | |
| | |
| Norway - 0.3% | | | | |
Marine Harvest ASA (Æ) | | 3,260,730 | | 3,017 |
Statoil ASA - ADR (Ñ) | | 115,850 | | 2,800 |
| | | | |
| | | | 5,817 |
| | | | |
| | |
| Panama - 0.8% | | | | |
Carnival Corp. | | 343,500 | | 14,324 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Papua New Guinea - 0.2% | | | | |
Lihir Gold, Ltd. | | 1,154,207 | | 4,089 |
| | | | |
| | |
| Russia - 0.4% | | | | |
Gazprom OAO - ADR | | 342,495 | | 7,950 |
| | | | |
| | |
| South Africa - 0.6% | | | | |
AngloGold Ashanti, Ltd. - ADR | | 73,784 | | 3,089 |
Gold Fields, Ltd. | | 455,000 | | 6,093 |
Simmer & Jack Mines, Ltd. (Æ) | | 8,949,100 | | 1,614 |
| | | | |
| | | | 10,796 |
| | | | |
| | |
| South Korea - 1.0% | | | | |
Korea Electric Power Corp. - ADR | | 247,300 | | 3,720 |
KT Corp. - ADR | | 57,350 | | 1,269 |
Samsung Electronics Co., Ltd. | | 16,382 | | 12,390 |
SK Telecom Co., Ltd. - ADR | | 81,150 | | 1,502 |
| | | | |
| | | | 18,881 |
| | | | |
| | |
| Spain - 0.7% | | | | |
Iberdrola Renovables SA | | 1,326,348 | | 5,146 |
Telefonica SA | | 378,993 | | 8,511 |
| | | | |
| | | | 13,657 |
| | | | |
| | |
| Switzerland - 7.4% | | | | |
Adecco SA | | 173,100 | | 10,202 |
Compagnie Financiere Richemont SA | | 697,394 | | 25,781 |
Credit Suisse Group AG | | 300,119 | | 13,730 |
Givaudan SA | | 5,375 | | 4,679 |
Julius Baer Group, Ltd. | | 341,800 | | 11,805 |
Nestle SA | | 488,807 | | 23,856 |
Novartis AG | | 130,500 | | 6,658 |
Roche Holding AG | | 138,244 | | 21,833 |
Transocean, Ltd. (Æ) | | 96,900 | | 7,020 |
UBS AG (Æ) | | 748,889 | | 11,563 |
| | | | |
| | | | 137,127 |
| | | | |
| | |
| Taiwan - 0.1% | | | | |
HON HAI Precision Industry Co., Ltd. (Å) | | 491,000 | | 2,293 |
| | | | |
| | |
| Thailand - 0.1% | | | | |
Bangkok Bank PCL | | 316,500 | | 1,169 |
Krung Thai Bank PCL | | 3,655,200 | | 1,390 |
| | | | |
| | | | 2,559 |
| | | | |
| | |
| Turkey - 0.1% | | | | |
Turkcell Iletisim Hizmet AS - ADR | | 132,000 | | 2,134 |
| | | | |
| | |
| United Kingdom - 8.0% | | | | |
Anglo American PLC (Æ) | | 184,280 | | 7,893 |
AstraZeneca PLC - ADR (Ñ) | | 61,000 | | 2,698 |
BP PLC | | 14,149 | | 123 |
BP PLC - ADR | | 46,200 | | 2,409 |
British Sky Broadcasting Group PLC | | 716,500 | | 6,720 |
BT Group PLC | | 1,822,000 | | 3,529 |
Centrica PLC | | 1,497,502 | | 6,711 |
| | |
| 70 | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Diageo PLC | | 1,104,038 | | 18,828 |
Experian PLC | | 406,500 | | 3,761 |
GlaxoSmithKline PLC | | 320,000 | | 5,926 |
Reckitt Benckiser Group PLC | | 293,057 | | 15,210 |
Reed Elsevier PLC | | 1,080,000 | | 8,506 |
Rio Tinto PLC | | 106,699 | | 5,382 |
Rolls-Royce Group PLC (Æ) | | 2,000,516 | | 17,667 |
Rolls-Royce Group PLC Class C | | 173,341,440 | | 265 |
Royal Dutch Shell PLC - ADR | | 51,300 | | 3,113 |
Royal Dutch Shell PLC Class B | | 354,680 | | 10,703 |
Standard Chartered PLC | | 284,145 | | 7,574 |
Unilever PLC | | 307,956 | | 9,225 |
Vodafone Group PLC | | 2,264,722 | | 5,035 |
WPP PLC | | 647,443 | | 6,884 |
| | | | |
| | | | 148,162 |
| | | | |
| | |
| United States - 40.3% | | | | |
3M Co. | | 182,510 | | 16,183 |
Aetna, Inc. | | 144,500 | | 4,270 |
AGCO Corp. (Æ)(Ñ) | | 122,000 | | 4,272 |
Alcoa, Inc. | | 200,000 | | 2,688 |
Amazon.com, Inc. (Æ) | | 62,500 | | 8,566 |
Ameren Corp. (Ñ) | | 104,900 | | 2,723 |
American Express Co. | | 163,600 | | 7,545 |
Apple, Inc. (Æ) | | 78,370 | | 20,464 |
Applied Materials, Inc. | | 860,500 | | 11,858 |
Arch Coal, Inc. (Ñ) | | 125,100 | | 3,378 |
Autodesk, Inc. (Æ) | | 113,200 | | 3,850 |
AutoZone, Inc. (Æ) | | 36,900 | | 6,827 |
Bank of America Corp. | | 709,900 | | 12,657 |
Bank of New York Mellon Corp. (The) | | 1,052,050 | | 32,750 |
Bed Bath & Beyond, Inc. (Æ) | | 113,100 | | 5,198 |
Best Buy Co., Inc. | | 158,000 | | 7,205 |
Boeing Co. (The) | | 125,200 | | 9,068 |
Cameron International Corp. (Æ) | | 132,700 | | 5,236 |
Caterpillar, Inc. | | 157,500 | | 10,724 |
CBS Corp. Class B | | 358,700 | | 5,815 |
Cisco Systems, Inc. (Æ) | | 637,020 | | 17,149 |
ConocoPhillips | | 75,400 | | 4,463 |
Dentsply International, Inc. (Ñ) | | 306,550 | | 11,232 |
Discover Financial Services | | 343,400 | | 5,309 |
eBay, Inc. (Æ) | | 181,200 | | 4,314 |
Edwards Lifesciences Corp. (Æ)(Ñ) | | 51,800 | | 5,340 |
EOG Resources, Inc. | | 48,300 | | 5,415 |
Fifth Third Bancorp | | 694,800 | | 10,359 |
Forest Laboratories, Inc. (Æ) | | 53,000 | | 1,445 |
Franklin Resources, Inc. | | 108,800 | | 12,582 |
Freeport-McMoRan Copper & Gold, Inc. Class B (Ñ) | | 74,500 | | 5,627 |
General Dynamics Corp. | | 73,000 | | 5,574 |
Gilead Sciences, Inc. (Æ) | | 125,900 | | 4,994 |
Goldman Sachs Group, Inc. (The) | | 87,300 | | 12,676 |
Google, Inc. Class A (Æ) | | 33,700 | | 17,707 |
Hess Corp. | | 89,700 | | 5,700 |
Hewlett-Packard Co. | | 224,000 | | 11,641 |
Illinois Tool Works, Inc. | | 155,000 | | 7,920 |
Illumina, Inc. (Æ)(Ñ) | | 67,800 | | 2,839 |
Intel Corp. | | 1,284,500 | | 29,325 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Janus Capital Group, Inc. (Ñ) | | 146,400 | | 2,061 |
JPMorgan Chase & Co. | | 814,321 | | 34,674 |
Juniper Networks, Inc. (Æ)(Ñ) | | 508,300 | | 14,441 |
KeyCorp | | 129,500 | | 1,168 |
Kroger Co. (The) | | 200,000 | | 4,446 |
Lockheed Martin Corp. | | 21,400 | | 1,817 |
Lowe’s Cos., Inc. | | 328,800 | | 8,917 |
Mastercard, Inc. Class A | | 42,500 | | 10,542 |
Medtronic, Inc. | | 347,370 | | 15,177 |
Microsoft Corp. | | 268,600 | | 8,203 |
Monsanto Co. | | 223,400 | | 14,088 |
Morgan Stanley | | 261,900 | | 7,915 |
MSCI, Inc. Class A (Æ) | | 73,900 | | 2,561 |
Murphy Oil Corp. | | 118,200 | | 7,110 |
National Oilwell Varco, Inc. | | 179,500 | | 7,903 |
Newmont Mining Corp. | | 234,700 | | 13,162 |
News Corp. Class B (Ñ) | | 256,600 | | 4,565 |
Omnicom Group, Inc. | | 436,990 | | 18,642 |
Oracle Corp. | | 716,500 | | 18,514 |
Peabody Energy Corp. | | 91,100 | | 4,256 |
PepsiCo, Inc. | | 100,500 | | 6,555 |
Pfizer, Inc. | | 763,900 | | 12,772 |
PNC Financial Services Group, Inc. | | 68,867 | | 4,629 |
Polo Ralph Lauren Corp. Class A (Ñ) | | 114,800 | | 10,321 |
Praxair, Inc. | | 240,990 | | 20,188 |
Procter & Gamble Co. (The) | | 231,910 | | 14,416 |
QUALCOMM, Inc. | | 339,400 | | 13,148 |
Range Resources Corp. (Ñ) | | 108,800 | | 5,196 |
Red Hat, Inc. (Æ) | | 83,800 | | 2,503 |
Smithfield Foods, Inc. (Æ) | | 138,700 | | 2,599 |
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö) | | 90,900 | | 4,955 |
Tesoro Corp. (Ñ) | | 290,692 | | 3,823 |
Tyson Foods, Inc. Class A | | 222,000 | | 4,349 |
Union Pacific Corp. | | 59,550 | | 4,506 |
Wal-Mart Stores, Inc. | | 99,425 | | 5,334 |
Walgreen Co. | | 424,240 | | 14,912 |
Walt Disney Co. (The) | | 572,990 | | 21,109 |
Waters Corp. (Æ)(Ñ) | | 279,190 | | 20,099 |
WellPoint, Inc. (Æ) | | 129,300 | | 6,956 |
Wells Fargo & Co. | | 223,196 | | 7,390 |
| | | | |
| | | | 748,810 |
| | | | |
| | |
Total Common Stocks (cost $1,543,584) | | | | 1,719,157 |
| | | | |
| | |
| Preferred Stocks - 0.1% | | | | |
| Brazil - 0.1% | | | | |
Tim Participacoes SA | | 766,100 | | 1,993 |
| | | | |
| | |
Total Preferred Stocks (cost $1,674) | | | | 1,993 |
| | | | |
| | |
| Short-Term Investments - 6.1% | | | | |
| United States - 6.1% | | | | |
Russell U.S. Cash Management Fund (£) | | 112,399,228 | | 112,399 |
| | | | |
| | |
Total Short-Term Investments (cost $112,399) | | | | 112,399 |
| | | | |
| | |
| Russell Global Equity Fund | | 71 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| | | | | |
| | |
| Other Securities - 5.3% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 55,668,198 | | 55,668 | |
State Street Securities Lending Quality Trust (×) | | 43,162,245 | | 43,049 | |
| | | | | |
| | |
Total Other Securities (cost $98,830) | | | | 98,717 | |
| | | | | |
| | |
Total Investments - 104.0% (identified cost $1,756,487) | | | | 1,932,266 | |
| | |
Other Assets and Liabilities,
Net - (4.0%) | | | | (74,687 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 1,857,579 | |
| | | | | |
A portion of the portfolio has been fair valued as of period end.
See accompanying notes which are an integral part of the financial statements.
| | |
| 72 | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
EUR STOXX 50 Index (EMU) | | 650 | | EUR | | 17,862 | | 06/10 | | (796) |
FTSE-100 Index (UK) | | 140 | | GBP | | 7,711 | | 06/10 | | (202) |
Hang Seng Index (Hong Kong) | | 13 | | HKD | | 13,573 | | 05/10 | | (10) |
S&P 500 E-Mini Index (CME) | | 820 | | USD | | 48,519 | | 06/10 | | 1,035 |
S&P 500 Index (CME) | | 40 | | USD | | 11,834 | | 06/10 | | 423 |
SPI 200 Index (Australia) | | 45 | | AUD | | 5,421 | | 06/10 | | (45) |
TOPIX Index (Japan) | | 127 | | JPY | | 1,248,410 | | 06/10 | | 606 |
TSE 60 Index (Canada) | | 44 | | CAD | | 6,285 | | 06/10 | | 113 |
| | | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | 1,124 |
| | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Equity Fund | | 73 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Bank of America | | USD | | 184 | | AUD | | 200 | | 06/16/10 | | — | |
Bank of America | | USD | | 227 | | AUD | | 250 | | 06/16/10 | | 3 | |
Bank of America | | USD | | 275 | | AUD | | 300 | | 06/16/10 | | 1 | |
Bank of America | | USD | | 199 | | CAD | | 200 | | 06/16/10 | | (3 | ) |
Bank of America | | USD | | 344 | | CAD | | 350 | | 06/16/10 | | 1 | |
Bank of America | | USD | | 401 | | EUR | | 300 | | 06/16/10 | | (1 | ) |
Bank of America | | USD | | 1,886 | | EUR | | 1,400 | | 06/16/10 | | (22 | ) |
Bank of America | | USD | | 460 | | GBP | | 300 | | 06/16/10 | | (2 | ) |
Bank of America | | USD | | 1,123 | | GBP | | 750 | | 06/16/10 | | 24 | |
Bank of America | | USD | | 129 | | HKD | | 1,000 | | 06/17/10 | | — | |
Bank of America | | USD | | 318 | | JPY | | 30,000 | | 06/16/10 | | 1 | |
Bank of America | | USD | | 756 | | JPY | | 70,000 | | 06/16/10 | | (10 | ) |
Bank of America | | HKD | | 500 | | USD | | 64 | | 06/17/10 | | — | |
Barclays Bank PLC | | USD | | 1,798 | | CAD | | 1,852 | | 06/16/10 | | 25 | |
Barclays Bank PLC | | USD | | 3,457 | | GBP | | 2,291 | | 06/16/10 | | 47 | |
Barclays Bank PLC | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
Barclays Bank PLC | | USD | | 3,785 | | JPY | | 337,286 | | 06/16/10 | | (193 | ) |
Brown Brother’s Harriman Co. | | USD | | 92 | | AUD | | 100 | | 06/16/10 | | — | |
Brown Brother’s Harriman Co. | | USD | | 487 | | CAD | | 500 | | 06/16/10 | | 5 | |
Brown Brother’s Harriman Co. | | USD | | 90 | | EUR | | 68 | | 05/03/10 | | 1 | |
Brown Brother’s Harriman Co. | | USD | | 1,607 | | EUR | | 1,200 | | 06/16/10 | | (9 | ) |
Brown Brother’s Harriman Co. | | USD | | 2,460 | | EUR | | 1,800 | | 06/16/10 | | (63 | ) |
Brown Brother’s Harriman Co. | | USD | | 96 | | GBP | | 63 | | 05/04/10 | | 1 | |
Brown Brother’s Harriman Co. | | USD | | 308 | | GBP | | 200 | | 06/16/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | USD | | 129 | | HKD | | 1,000 | | 06/17/10 | | — | |
Brown Brother’s Harriman Co. | | USD | | 537 | | JPY | | 50,000 | | 06/16/10 | | (4 | ) |
Brown Brother’s Harriman Co. | | USD | | 850 | | JPY | | 80,000 | | 06/16/10 | | 2 | |
Brown Brother’s Harriman Co. | | AUD | | 6,800 | | USD | | 6,100 | | 06/16/10 | | (161 | ) |
Brown Brother’s Harriman Co. | | CAD | | 8,000 | | USD | | 7,764 | | 06/16/10 | | (112 | ) |
Brown Brother’s Harriman Co. | | EUR | | 24,000 | | USD | | 32,652 | | 06/16/10 | | 692 | |
Brown Brother’s Harriman Co. | | HKD | | 17,000 | | USD | | 2,191 | | 06/17/10 | | 1 | |
Brown Brother’s Harriman Co. | | JPY | | 20,000 | | USD | | 213 | | 06/16/10 | | — | |
Brown Brother’s Harriman Co. | | JPY | | 1,500,000 | | USD | | 16,608 | | 06/16/10 | | 634 | |
Citibank | | EUR | | 2,731 | | USD | | 3,631 | | 05/04/10 | | (6 | ) |
Citibank | | JPY | | 164,437 | | USD | | 1,752 | | 05/06/10 | | 2 | |
Citibank | | JPY | | 171,456 | | USD | | 1,828 | | 05/07/10 | | 2 | |
Deutsche Bank | | USD | | 185 | | AUD | | 200 | | 06/16/10 | | — | |
Deutsche Bank | | USD | | 454 | | AUD | | 500 | | 06/16/10 | | 6 | |
Deutsche Bank | | USD | | 1,407 | | AUD | | 1,576 | | 06/16/10 | | 44 | |
Deutsche Bank | | USD | | 493 | | CAD | | 500 | | 06/16/10 | | — | |
Deutsche Bank | | USD | | 498 | | CAD | | 500 | | 06/16/10 | | (6 | ) |
Deutsche Bank | | USD | | 1,798 | | CAD | | 1,852 | | 06/16/10 | | 25 | |
Deutsche Bank | | USD | | 933 | | EUR | | 700 | | 06/16/10 | | (1 | ) |
Deutsche Bank | | USD | | 1,365 | | EUR | | 1,000 | | 06/16/10 | | (34 | ) |
Deutsche Bank | | USD | | 2,708 | | EUR | | 2,000 | | 06/16/10 | | (45 | ) |
Deutsche Bank | | USD | | 7,335 | | EUR | | 5,369 | | 06/16/10 | | (186 | ) |
Deutsche Bank | | USD | | 751 | | GBP | | 500 | | 06/16/10 | | 14 | |
Deutsche Bank | | USD | | 3,456 | | GBP | | 2,291 | | 06/16/10 | | 49 | |
Deutsche Bank | | USD | | 129 | | HKD | | 1,000 | | 06/17/10 | | — | |
Deutsche Bank | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
Deutsche Bank | | USD | | 1,107 | | JPY | | 100,000 | | 06/16/10 | | (42 | ) |
Deutsche Bank | | USD | | 3,787 | | JPY | | 337,286 | | 06/16/10 | | (195 | ) |
HSBC | | USD | | 1,406 | | AUD | | 1,576 | | 06/16/10 | | 45 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 74 | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
HSBC | | USD | | 1,798 | | CAD | | 1,852 | | 06/16/10 | | 26 | |
HSBC | | USD | | 7,334 | | EUR | | 5,369 | | 06/16/10 | | (185 | ) |
HSBC | | USD | | 3,454 | | GBP | | 2,291 | | 06/16/10 | | 50 | |
HSBC | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
HSBC | | USD | | 637 | | JPY | | 60,000 | | 06/16/10 | | 2 | |
HSBC | | USD | | 3,783 | | JPY | | 337,286 | | 06/16/10 | | (191 | ) |
HSBC | | EUR | | 1,192 | | USD | | 1,580 | | 05/04/10 | | (7 | ) |
HSBC | | EUR | | 1,000 | | USD | | 1,360 | | 06/16/10 | | 28 | |
JP Morgan | | USD | | 1,799 | | CAD | | 1,852 | | 06/16/10 | | 25 | |
JP Morgan | | USD | | 7,338 | | EUR | | 5,369 | | 06/16/10 | | (189 | ) |
JP Morgan | | USD | | 3,460 | | GBP | | 2,291 | | 06/16/10 | | 44 | |
JP Morgan | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
JP Morgan | | USD | | 3,786 | | JPY | | 337,286 | | 06/16/10 | | (194 | ) |
JP Morgan | | CAD | | 300 | | USD | | 292 | | 06/16/10 | | (3 | ) |
JP Morgan | | JPY | | 30,000 | | USD | | 332 | | 06/16/10 | | 12 | |
Mellon Bank | | USD | | 1,406 | | AUD | | 1,576 | | 06/16/10 | | 44 | |
Mellon Bank | | USD | | 1,798 | | CAD | | 1,852 | | 06/16/10 | | 25 | |
Mellon Bank | | USD | | 7,340 | | EUR | | 5,369 | | 06/16/10 | | (191 | ) |
Mellon Bank | | USD | | 752 | | GBP | | 500 | | 06/16/10 | | 13 | |
Mellon Bank | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
Mellon Bank | | USD | | 993 | | JPY | | 90,000 | | 06/16/10 | | (35 | ) |
National Australia Bank LTD. | | USD | | 272 | | AUD | | 300 | | 06/16/10 | | 5 | |
Royal Bank of Canada | | USD | | 1,406 | | AUD | | 1,576 | | 06/16/10 | | 44 | |
Royal Bank of Canada | | USD | | 7,338 | | EUR | | 5,369 | | 06/16/10 | | (189 | ) |
Royal Bank of Scotland | | USD | | 182 | | AUD | | 200 | | 06/16/10 | | 2 | |
Royal Bank of Scotland | | USD | | 200 | | CAD | | 200 | | 06/16/10 | | (3 | ) |
Royal Bank of Scotland | | USD | | 393 | | CAD | | 400 | | 06/16/10 | | 1 | |
Royal Bank of Scotland | | USD | | 386 | | EUR | | 293 | | 05/03/10 | | 5 | |
Royal Bank of Scotland | | USD | | 892 | | EUR | | 670 | | 05/05/10 | | — | |
Royal Bank of Scotland | | USD | | 660 | | EUR | | 500 | | 06/16/10 | | 6 | |
Royal Bank of Scotland | | USD | | 1,351 | | EUR | | 1,000 | | 06/16/10 | | (19 | ) |
Royal Bank of Scotland | | USD | | 451 | | GBP | | 300 | | 06/16/10 | | 8 | |
Royal Bank of Scotland | | USD | | 464 | | GBP | | 300 | | 06/16/10 | | (5 | ) |
Royal Bank of Scotland | | USD | | 129 | | HKD | | 1,000 | | 06/17/10 | | — | |
Royal Bank of Scotland | | USD | | 129 | | HKD | | 1,000 | | 06/17/10 | | — | |
Royal Bank of Scotland | | USD | | 886 | | JPY | | 80,000 | | 06/16/10 | | (34 | ) |
Royal Bank of Scotland | | CAD | | 200 | | USD | | 197 | | 06/16/10 | | — | |
Royal Bank of Scotland | | EUR | | 112 | | USD | | 150 | | 05/05/10 | | — | |
Royal Bank of Scotland | | EUR | | 400 | | USD | | 532 | | 06/16/10 | | — | |
Royal Bank of Scotland | | GBP | | 110 | | USD | | 168 | | 05/06/10 | | — | |
Royal Bank of Scotland | | GBP | | 2,384 | | USD | | 3,643 | | 05/06/10 | | (5 | ) |
Royal Bank of Scotland | | GBP | | 100 | | USD | | 149 | | 06/16/10 | | (4 | ) |
Royal Bank of Scotland | | GBP | | 200 | | USD | | 306 | | 06/16/10 | | — | |
Royal Bank of Scotland | | JPY | | 30,000 | | USD | | 324 | | 06/16/10 | | 5 | |
Royal Bank of Scotland | | JPY | | 40,000 | | USD | | 426 | | 06/16/10 | | — | |
Royal Bank of Scotland | | MXN | | 2,422 | | USD | | 198 | | 05/04/10 | | 2 | |
Societe Generale | | USD | | 1,405 | | AUD | | 1,576 | | 06/16/10 | | 46 | |
Societe Generale | | USD | | 1,798 | | CAD | | 1,852 | | 06/16/10 | | 25 | |
Societe Generale | | USD | | 7,335 | | EUR | | 5,369 | | 06/16/10 | | (186 | ) |
Societe Generale | | USD | | 3,454 | | GBP | | 2,291 | | 06/16/10 | | 50 | |
Societe Generale | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
Societe Generale | | USD | | 3,785 | | JPY | | 337,286 | | 06/16/10 | | (193 | ) |
State Street Bank and Trust Company | | USD | | 90 | | AUD | | 100 | | 06/16/10 | | 2 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Equity Fund | | 75 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
State Street Bank and Trust Company | | USD | | 1,406 | | AUD | | 1,576 | | 06/16/10 | | 44 | |
State Street Bank and Trust Company | | USD | | 97 | | CAD | | 100 | | 06/16/10 | | 1 | |
State Street Bank and Trust Company | | USD | | 3,455 | | GBP | | 2,291 | | 06/16/10 | | 49 | |
State Street Bank and Trust Company | | USD | | 135 | | HKD | | 1,052 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 64 | | HKD | | 500 | | 06/17/10 | | — | |
State Street Bank and Trust Company | | USD | | 443 | | JPY | | 40,000 | | 06/16/10 | | (17 | ) |
State Street Bank and Trust Company | | USD | | 3,785 | | JPY | | 337,286 | | 06/16/10 | | (193 | ) |
State Street Bank and Trust Company | | AUD | | 800 | | USD | | 721 | | 06/16/10 | | (16 | ) |
State Street Bank and Trust Company | | CAD | | 100 | | USD | | 98 | | 06/16/10 | | (1 | ) |
State Street Bank and Trust Company | | CAD | | 1,000 | | USD | | 977 | | 06/16/10 | | (8 | ) |
State Street Bank and Trust Company | | EUR | | 18 | | USD | | 23 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | EUR | | 282 | | USD | | 371 | | 05/03/10 | | (4 | ) |
State Street Bank and Trust Company | | EUR | | 56 | | USD | | 74 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | EUR | | 58 | | USD | | 76 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | EUR | | 94 | | USD | | 126 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | EUR | | 300 | | USD | | 413 | | 06/16/10 | | 13 | |
State Street Bank and Trust Company | | EUR | | 500 | | USD | | 664 | | 06/16/10 | | (2 | ) |
State Street Bank and Trust Company | | EUR | | 2,900 | | USD | | 3,866 | | 06/16/10 | | 4 | |
State Street Bank and Trust Company | | GBP | | 241 | | USD | | 369 | | 05/05/10 | | 1 | |
State Street Bank and Trust Company | | GBP | | 200 | | USD | | 296 | | 06/16/10 | | (10 | ) |
State Street Bank and Trust Company | | GBP | | 1,000 | | USD | | 1,489 | | 06/16/10 | | (40 | ) |
State Street Bank and Trust Company | | GBP | | 10,500 | | USD | | 15,879 | | 06/16/10 | | (184 | ) |
State Street Bank and Trust Company | | HKD | | 2,000 | | USD | | 258 | | 06/17/10 | | — | |
State Street Bank and Trust Company | | JPY | | 20,000 | | USD | | 216 | | 06/16/10 | | 3 | |
State Street Bank and Trust Company | | JPY | | 160,000 | | USD | | 1,738 | | 06/16/10 | | 34 | |
State Street Bank and Trust Company | | MXN | | 1,036 | | USD | | 84 | | 05/03/10 | | — | |
UBS | | USD | | 753 | | GBP | | 500 | | 06/16/10 | | 12 | |
Westpac Banking Corporation | | USD | | 1,406 | | AUD | | 1,576 | | 06/16/10 | | 45 | |
Westpac Banking Corporation | | USD | | 1,799 | | CAD | | 1,852 | | 06/16/10 | | 25 | |
Westpac Banking Corporation | | USD | | 927 | | EUR | | 700 | | 06/16/10 | | 5 | |
Westpac Banking Corporation | | USD | | 7,336 | | EUR | | 5,369 | | 06/16/10 | | (187 | ) |
Westpac Banking Corporation | | USD | | 764 | | GBP | | 500 | | 06/16/10 | | 1 | |
Westpac Banking Corporation | | USD | | 3,457 | | GBP | | 2,291 | | 06/16/10 | | 47 | |
Westpac Banking Corporation | | USD | | 517 | | HKD | | 4,014 | | 06/17/10 | | — | |
Westpac Banking Corporation | | USD | | 3,785 | | JPY | | 337,286 | | 06/16/10 | | (193 | ) |
Westpac Banking Corporation | | AUD | | 200 | | USD | | 182 | | 06/16/10 | | (2 | ) |
Westpac Banking Corporation | | EUR | | 600 | | USD | | 812 | | 06/16/10 | | 13 | |
Westpac Banking Corporation | | GBP | | 150 | | USD | | 228 | | 06/16/10 | | (2 | ) |
| | | | | | | | | | | | | |
| | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | (1,197 | ) |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 76 | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| | | Market Value | | | | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | Total | | | % of Net
Assets | |
| | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | |
Australia | | $ | — | | | $ | 4,518 | | | $ | — | | $ | 4,518 | | | 0.2 | |
Brazil | | | 35,724 | | | | — | | | | — | | | 35,724 | | | 1.9 | |
Canada | | | 55,297 | | | | — | | | | — | | | 55,297 | | | 3.0 | |
Cayman Islands | | | 6,686 | | | | 11,096 | | | | — | | | 17,782 | | | 1.0 | |
China | | | 2,107 | | | | 2,206 | | | | — | | | 4,313 | | | 0.2 | |
Finland | | | — | | | | 2,989 | | | | — | | | 2,989 | | | 0.2 | |
France | | | — | | | | 82,627 | | | | — | | | 82,627 | | | 4.5 | |
Germany | | | 2,464 | | | | 81,541 | | | | — | | | 84,005 | | | 4.5 | |
Hong Kong | | | 2,949 | | | | 5,255 | | | | — | | | 8,204 | | | 0.4 | |
India | | | — | | | | 20,519 | | | | 1,398 | | | 21,917 | | | 1.2 | |
Indonesia | | | 2,757 | | | | — | | | | — | | | 2,757 | | | 0.2 | |
Ireland | | | 40,429 | | | | 1,955 | | | | — | | | 42,384 | | | 2.3 | |
Italy | | | — | | | | 19,745 | | | | — | | | 19,745 | | | 1.1 | |
Japan | | | 2,388 | | | | 135,438 | | | | — | | | 137,826 | | | 7.4 | |
Luxembourg | | | — | | | | 3,727 | | | | — | | | 3,727 | | | 0.2 | |
Mexico | | | 28,452 | | | | — | | | | — | | | 28,452 | | | 1.5 | |
Netherlands | | | — | | | | 45,063 | | | | — | | | 45,063 | | | 2.4 | |
Netherlands Antilles | | | 5,228 | | | | — | | | | — | | | 5,228 | | | 0.3 | |
Norway | | | 2,800 | | | | 3,017 | | | | — | | | 5,817 | | | 0.3 | |
Panama | | | 14,324 | | | | — | | | | — | | | 14,324 | | | 0.8 | |
Papua New Guinea | | | — | | | | 4,089 | | | | — | | | 4,089 | | | 0.2 | |
Russia | | | — | | | | 7,950 | | | | — | | | 7,950 | | | 0.4 | |
South Africa | | | 3,089 | | | | 7,707 | | | | — | | | 10,796 | | | 0.6 | |
South Korea | | | 6,491 | | | | 12,390 | | | | — | | | 18,881 | | | 1.0 | |
Spain | | | — | | | | 13,657 | | | | — | | | 13,657 | | | 0.7 | |
Switzerland | | | 10,596 | | | | 126,531 | | | | — | | | 137,127 | | | 7.4 | |
Taiwan | | | — | | | | 2,293 | | | | — | | | 2,293 | | | 0.1 | |
Thailand | | | 1,390 | | | | 1,169 | | | | — | | | 2,559 | | | 0.1 | |
Turkey | | | 2,134 | | | | — | | | | — | | | 2,134 | | | 0.1 | |
United Kingdom | | | 8,220 | | | | 139,677 | | | | 265 | | | 148,162 | | | 8.0 | |
United States | | | 748,810 | | | | — | | | | — | | | 748,810 | | | 40.3 | |
Preferred Stocks | | | 1,993 | | | | — | | | | — | | | 1,993 | | | 0.1 | |
Short-Term Investments | | | — | | | | 112,399 | | | | — | | | 112,399 | | | 6.1 | |
Other Securities | | | — | | | | 98,717 | | | | — | | | 98,717 | | | 5.3 | |
| | | | | | | | | | | | | | | | | | |
Total Investments | | | 984,328 | | | | 946,275 | | | | 1,663 | | | 1,932,266 | | | 104.0 | |
| | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | (4.0 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 1,124 | | | | — | | | | — | | | 1,124 | | | 0.1 | |
Foreign Currency Exchange Contracts | | | (6 | ) | | | (1,191 | ) | | | — | | | (1,197 | ) | | (0.1 | ) |
| | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | | 1,118 | | | | (1,191 | ) | | | — | | | (73 | ) | | | |
| | | | | | | | | | | | | | | | | | |
| * | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending April 30, 2010 were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Equity Fund | | 77 |
Russell Investment Company
Russell Global Equity Fund
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | Foreign
Currency
Contracts | |
| | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | | $ | 2,392 | |
Daily variation margin on futures contracts* | | | 2,177 | | | — | |
| | | | | | | |
Total | | $ | 2,177 | | $ | 2,392 | |
| | | | | | | |
| | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | $ | 3,589 | |
Daily variation margin on futures contracts* | | | 1,053 | | | — | |
| | | | | | | |
Total | | $ | 1,053 | | $ | 3,589 | |
| | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | Foreign
Currency
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | |
Futures contracts | | $ | 8,692 | | $ | — | |
Foreign currency-related transactions | | | — | | | (339 | ) |
| | | | | | | |
Total | | $ | 8,692 | | $ | (339 | ) |
| | | | | | | |
| | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | |
Futures contracts | | $ | 2,391 | | $ | — | |
Foreign currency-related transactions | | | — | | | (1,833 | ) |
| | | | | | | |
Total | | $ | 2,391 | | $ | (1,833 | ) |
| | | | | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 78 | | Russell Global Equity Fund |
Russell Investment Company
Russell Emerging Markets Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,146.80 | | $ | 1,016.02 |
Expenses Paid During Period* | | $ | 9.42 | | $ | 8.85 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.77% (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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,142.60 | | $ | 1,012.35 |
Expenses Paid During Period* | | $ | 13.33 | | $ | 12.52 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.51% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,146.70 | | $ | 1,016.07 |
Expenses Paid During Period* | | $ | 9.37 | | $ | 8.80 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.76% (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). |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,148.00 | | $ | 1,017.31 |
Expenses Paid During Period* | | $ | 8.04 | | $ | 7.55 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.51% (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). |
| | |
| Russell Emerging Markets Fund | | 79 |
Russell Investment Company
Russell Emerging Markets Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,148.70 | | $ | 1,018.15 |
Expenses Paid During Period* | | $ | 7.14 | | $ | 6.71 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.34% (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). |
| | |
| 80 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 90.3% | | | | |
| Austria - 0.2% | | | | |
Vienna Insurance Group | | 29,398 | | 1,441 |
Wienerberger AG (Æ) | | 58,090 | | 1,089 |
| | | | |
| | | | 2,530 |
| | | | |
| | |
| Bermuda - 1.7% | | | | |
C C Land Holdings, Ltd. | | 1,900,000 | | 711 |
Central European Media Enterprises, Ltd. Class A (Æ) | | 45,990 | | 1,564 |
Cosan, Ltd. (Æ) | | 96,700 | | 1,027 |
Credicorp, Ltd. | | 71,332 | | 6,196 |
Genpact, Ltd. (Æ) | | 47,800 | | 807 |
GOME Electrical Appliances Holdings, Ltd. (Æ) | | 2,831,680 | | 906 |
Kunlun Energy Co., Ltd. (Ñ) | | 124,000 | | 166 |
Li & Fung, Ltd. | | 782,000 | | 3,800 |
Texwinca Holdings, Ltd. | | 596,000 | | 638 |
TPV Technology, Ltd. (Ñ) | | 1,256,000 | | 961 |
VimpelCom, Ltd. - ADR (Æ) | | 281,725 | | 4,908 |
Yue Yuen Industrial Holdings, Ltd. | | 663,000 | | 2,302 |
| | | | |
| | | | 23,986 |
| | | | |
| | |
| Brazil - 9.6% | | | | |
All America Latina Logistica SA | | 102,000 | | 928 |
Amil Participacoes SA | | 189,784 | | 1,556 |
Anhanguera Educacional Participacoes SA (Æ) | | 223,015 | | 3,490 |
Banco Bradesco SA - ADR | | 321,799 | | 5,992 |
Banco do Brasil SA | | 582,406 | | 10,048 |
Banco Santander Brasil SA | | 12,534 | | 145 |
Banco Santander Brasil SA - ADR | | 383,865 | | 4,464 |
BM&F Bovespa SA | | 1,332,629 | | 8,816 |
Brasil Telecom SA (Æ) | | 65,224 | | 539 |
BRF - Brasil Foods SA (Æ) | | 65,018 | | 849 |
Brookfield Incorporacoes SA | | 375,400 | | 1,687 |
Centrais Eletricas Brasileiras SA | | 184,200 | | 2,617 |
Cia Brasileira de Distribuicao Grupo Pao de Acucar - ADR (Ñ) | | 51,552 | | 3,532 |
Cia de Bebidas das Americas | | 349 | | — |
Cia de Bebidas das Americas - ADR | | 24,000 | | 2,347 |
Cia de Saneamento Basico do Estado de Sao Paulo (Æ) | | 253,240 | | 4,863 |
Cia de Saneamento Basico do Estado de Sao Paulo - ADR (Æ)(Ñ) | | 6,225 | | 245 |
Cia de Saneamento de Minas Gerais -COPASA (Æ)(Ñ) | | 75,500 | | 1,096 |
Cia Energetica de Minas Gerais - ADR (Ñ) | | 1,210 | | 20 |
Cia Siderurgica Nacional SA | | 164,008 | | 3,046 |
Cielo SA | | 137,200 | | 1,332 |
Diagnosticos da America SA (Æ) | | 78,000 | | 678 |
Gerdau SA - ADR (Æ)(Ñ) | | 84,403 | | 1,384 |
Hypermarcas SA (Æ) | | 154,500 | | 2,133 |
Itau Unibanco Holding SA - ADR | | 241,814 | | 5,243 |
Localiza Rent a Car SA | | 55,000 | | 617 |
Lojas Renner SA | | 135,200 | | 3,345 |
Marfrig Alimentos SA (Æ) | | 117,543 | | 1,233 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
MMX Mineracao e Metalicos SA (Æ) | | 314,767 | | 2,300 |
MRV Engenharia e Participacoes SA | | 158,400 | | 1,121 |
Natura Cosmeticos SA (Ñ) | | 190,400 | | 4,042 |
OGX Petroleo e Gas Participacoes SA (Æ) | | 135,448 | | 1,350 |
Petroleo Brasileiro SA (Æ) | | 85,900 | | 1,826 |
Petroleo Brasileiro SA - ADR | | 140,900 | | 5,346 |
Petroleo Brasileiro SA - ADR (Ñ) | | 249,340 | | 10,579 |
Redecard SA | | 218,200 | | 3,603 |
Rossi Residencial SA (Ñ) | | 105,700 | | 781 |
Souza Cruz SA | | 75,200 | | 2,899 |
Sul America SA | | 54,300 | | 1,478 |
Tam SA - ADR (Æ)(Ñ) | | 73,300 | | 1,295 |
Tractebel Energia SA | | 121,595 | | 1,549 |
Usinas Siderurgicas de Minas Gerais SA (Ñ) | | 82,300 | | 2,586 |
Vale SAClass B | | 663,540 | | 19,560 |
Weg SA | | 96,300 | | 983 |
| | | | |
| | | | 133,543 |
| | | | |
| | |
| Canada - 0.2% | | | | |
First Quantum Minerals, Ltd. | | 26,458 | | 2,030 |
| | | | |
| | |
| Cayman Islands - 3.7% | | | | |
Agile Property Holdings, Ltd. | | 424,000 | | 498 |
Alibaba.com, Ltd. | | 1,189,500 | | 2,255 |
ASM Pacific Technology, Ltd. | | 162,600 | | 1,549 |
Baidu, Inc. - ADR (Æ) | | 3,600 | | 2,482 |
Belle International Holdings, Ltd. (Ñ) | | 549,000 | | 757 |
China Dongxiang Group Co. | | 431,000 | | 290 |
China Shanshui Cement Group, Ltd. | | 1,674,000 | | 851 |
Comba Telecom Systems Holdings, Ltd. | | 1,214,000 | | 1,725 |
Daphne International Holdings, Ltd. (Ñ) | | 416,000 | | 426 |
Eurasia Drilling Co., Ltd. - GDR | | 4,200 | | 86 |
Hengan International Group Co., Ltd. | | 893,000 | | 6,842 |
Hengdeli Holdings, Ltd. (Æ) | | 3,232,000 | | 1,335 |
Ju Teng International Holdings, Ltd. | | 1,151,000 | | 1,060 |
Kingboard Chemical Holdings, Ltd. | | 234,500 | | 1,261 |
Li Ning Co., Ltd. | | 118,000 | | 449 |
Lifestyle International Holdings, Ltd. (Ñ) | | 654,500 | | 1,276 |
Melco Crown Entertainment, Ltd. - ADR (Æ) | | 187,900 | | 894 |
New Oriental Education & Technology Group - ADR (Æ)(Ñ) | | 27,200 | | 2,545 |
Pacific Textile Holdings, Ltd. | | 661,000 | | 391 |
Parkson Retail Group, Ltd. (Ñ) | | 1,394,531 | | 2,292 |
Real Gold Mining, Ltd. (Æ)(Ñ) | | 145,000 | | 222 |
Shenzhou International Group Holdings, Ltd. | | 502,000 | | 665 |
Shimao Property Holdings, Ltd. (Ñ) | | 1,598,000 | | 2,431 |
Shui On Land, Ltd. | | 1,663,500 | | 753 |
Sina Corp./China (Æ) | | 33,000 | | 1,211 |
Tencent Holdings, Ltd. | | 495,200 | | 10,178 |
Tingyi Cayman Islands Holding Corp. (Ñ) | | 300,000 | | 737 |
Uni-President China Holdings, Ltd. | | 2,031,000 | | 1,137 |
Want Want China Holdings, Ltd. | | 2,989,640 | | 2,236 |
Xingda International Holdings, Ltd. | | 3,745,000 | | 2,536 |
| | | | |
| | | | 51,370 |
| | | | |
| | |
| Russell Emerging Markets Fund | | 81 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| | |
| Chile - 0.7% | | | | |
Banco Santander Chile - ADR (Ñ) | | 60,276 | | 3,972 |
Embotelladora Andina SA - ADR | | 53,300 | | 1,149 |
Empresas La Polar SA | | 102,616 | | 599 |
SACI Falabella | | 122,710 | | 777 |
Sociedad Quimica y Minera de Chile SA - ADR (Ñ) | | 95,200 | | 3,427 |
| | | | |
| | | | 9,924 |
| | | | |
| | |
| China - 4.9% | | | | |
Anhui Conch Cement Co., Ltd. Class H | | 1,584,834 | | 5,040 |
Bank of China, Ltd. Class H | | 10,485,000 | | 5,394 |
Bank of Communications Co., Ltd. Class H | | 835,000 | | 949 |
Byd Co., Ltd. Class H | | 45,000 | | 401 |
China Coal Energy Co. | | 836,000 | | 1,252 |
China Communications Construction Co., Ltd. Class H | | 2,421,000 | | 2,275 |
China Construction Bank Corp. Class H | | 3,934,000 | | 3,187 |
China Life Insurance Co., Ltd. Class H | | 779,000 | | 3,546 |
China Merchants Bank Co., Ltd. | | 1,507,720 | | 3,697 |
China National Building Material Co., Ltd. Class H | | 696,000 | | 1,136 |
China Petroleum & Chemical Corp. Class H | | 1,222,000 | | 977 |
China Shenhua Energy Co., Ltd. | | 1,182,708 | | 5,041 |
China Telecom Corp., Ltd. Class H | | 688,000 | | 314 |
Chongqing Machinery & Electric Co., Ltd. (Æ) | | 5,221,537 | | 1,365 |
Dongfeng Motor Group Co., Ltd. Class H | | 2,766,000 | | 3,897 |
Industrial & Commercial Bank of China | | 9,790,398 | | 7,182 |
Jiangsu Expressway Co., Ltd. Class H | | 3,232,000 | | 3,027 |
Jiangxi Copper Co., Ltd. Class H (Ñ) | | 345,000 | | 724 |
PICC Property & Casualty Co., Ltd. Class H (Æ) | | 1,476,000 | | 1,392 |
Ping An Insurance Group Co. of China, Ltd. Class H | | 170,100 | | 1,453 |
Shandong Weigao Group Medical Polymer Co., Ltd. Class H | | 428,000 | | 1,987 |
Weichai Power Co., Ltd. Class H | | 161,000 | | 1,307 |
Weiqiao Textile Co. Class H | | 1,336,500 | | 984 |
Wumart Stores, Inc. Class H | | 209,000 | | 450 |
Yanzhou Coal Mining Co., Ltd. Class H (Ñ) | | 4,206,000 | | 11,739 |
| | | | |
| | | | 68,716 |
| | | | |
| | |
| Colombia - 0.5% | | | | |
BanColombia SA | | 143,700 | | 1,691 |
BanColombia SA - ADR (Ñ) | | 115,438 | | 5,395 |
| | | | |
| | | | 7,086 |
| | | | |
| | |
| Cyprus - 0.1% | | | | |
Globaltrans Investment PLC (Æ) | | 99,851 | | 1,355 |
| | | | |
| | |
| Czech Republic - 0.0% | | | | |
Komercni Banka AS | | 2,404 | | 496 |
| | | | |
| | |
| Egypt - 0.8% | | | | |
Commercial International Bank Egypt SAE | | 178,000 | | 2,408 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Egyptian Financial Group-Hermes Holding | | 104,618 | | 678 |
Orascom Construction Industries | | 91,244 | | 4,453 |
Orascom Construction Industries - GDR | | 50,500 | | 2,397 |
Telecom Egypt | | 360,140 | | 1,198 |
| | | | |
| | | | 11,134 |
| | | | |
| | |
| Germany - 0.1% | | | | |
Commercial Bank of Qatar Warrants, 2017 | | 90,500 | | 1,921 |
| | | | |
| | |
| Greece - 0.3% | | | | |
Coca Cola Hellenic Bottling Co. SA | | 165,044 | | 4,472 |
| | | | |
| | |
| Hong Kong - 2.6% | | | | |
Beijing Enterprises Holdings, Ltd. (Ñ) | | 391,000 | | 2,533 |
China Merchants Holdings International Co., Ltd. (Ñ) | | 134,658 | | 467 |
China Mobile, Ltd. | | 667,232 | | 6,524 |
China Overseas Land & Investment, Ltd. (Ñ) | | 1,246,667 | | 2,416 |
China Pharmaceutical Group, Ltd. | | 1,442,000 | | 1,050 |
China Resources Enterprise, Ltd. | | 1,613,254 | | 5,666 |
China Taiping Insurance Holdings Co., Ltd. (Æ) | | 1,502,000 | | 4,939 |
China Unicom Hong Kong, Ltd. | | 1,424,000 | | 1,776 |
CNOOC, Ltd. (Ñ) | | 3,428,000 | | 6,059 |
CNOOC, Ltd. - ADR (Ñ) | | 743 | | 131 |
Shenzhen Investment, Ltd. | | 4,022,000 | | 1,230 |
Shougang Concord International Enterprises Co., Ltd. (Æ) | | 7,246,000 | | 1,300 |
Sinotrans Shipping, Ltd. | | 3,533,500 | | 1,582 |
| | | | |
| | | | 35,673 |
| | | | |
| | |
| Hungary - 0.7% | | | | |
MOL Hungarian Oil and Gas NyRt (Æ) | | 51,120 | | 5,138 |
MOL Hungarian Oil and Gas NyRt - ADR (Æ)(Å) | | 12,898 | | 641 |
OTP Bank PLC (Æ) | | 58,900 | | 2,074 |
Richter Gedeon Nyrt. | | 5,400 | | 1,143 |
| | | | |
| | | | 8,996 |
| | | | |
| | |
| India - 7.2% | | | | |
Adani Power, Ltd. (Æ) | | 240,301 | | 674 |
Allahabad Bank | | 124,935 | | 460 |
Ambuja Cements, Ltd. (Æ) | | 896,000 | | 2,416 |
Axis Bank, Ltd. | | 132,400 | | 3,734 |
Bajaj Auto, Ltd. | | 107,452 | | 5,050 |
Balrampur Chini Mills, Ltd. | | 230,119 | | 430 |
Bank of Baroda | | 220,000 | | 3,410 |
BF Investment, Ltd. (Æ) | | 15,751 | | 57 |
BF Utilities, Ltd. (Æ) | | 11,321 | | 228 |
Canara Bank | | 265,712 | | 2,543 |
Container Corp. of India | | 45,469 | | 1,323 |
Dabur India, Ltd. Class A | | 626,000 | | 2,541 |
Educomp Solutions, Ltd. | | 34,097 | | 521 |
Financial Technologies India, Ltd. (Æ) | | 6,076 | | 212 |
Genesis Indian Investment Co., Ltd. | | 330,919 | | 21,298 |
| | |
| 82 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
GMR Infrastructure, Ltd. (Æ) | | 729,015 | | 1,077 |
GVK Power & Infrastructure, Ltd. (Æ) | | 686,205 | | 696 |
HCL Technologies, Ltd. | | 197,972 | | 1,753 |
HDFC Bank, Ltd. - ADR (Ñ) | | 41,400 | | 6,174 |
Hindalco Industries, Ltd. | | 1,294,700 | | 5,156 |
Housing Development Finance Corp. | | 34,144 | | 2,155 |
ICICI Bank, Ltd. | | 48,982 | | 1,033 |
ICICI Bank, Ltd. - ADR | | 42,500 | | 1,807 |
Infosys Technologies, Ltd. | | 10,954 | | 670 |
Infosys Technologies, Ltd. - ADR | | 21,400 | | 1,281 |
Jaiprakash Associates, Ltd. (Ñ) | | 534,267 | | 1,746 |
Maruti Suzuki India, Ltd. | | 15,656 | | 447 |
MRF, Ltd. | | 1,290 | | 205 |
Mundra Port and Special Economic Zone, Ltd. | | 70,305 | | 1,159 |
NTPC, Ltd. | | 544,130 | | 2,542 |
Punjab National Bank, Ltd. | | 176,000 | | 4,112 |
Satyam Computer Services, Ltd. (Æ) | | 268,131 | | 568 |
Sesa Goa, Ltd. | | 750,341 | | 7,096 |
Steel Authority of India, Ltd. | | 396,511 | | 1,925 |
Sterlite Industries India, Ltd. - ADR | | 89,400 | | 1,622 |
Tata Motors, Ltd. - ADR | | 79,300 | | 1,622 |
Tata Steel, Ltd. | | 377,500 | | 5,246 |
Union Bank of India | | 484,000 | | 3,370 |
United Spirits, Ltd. | | 36,622 | | 1,033 |
| | | | |
| | | | 99,392 |
| | | | |
| | |
| Indonesia - 2.6% | | | | |
Astra Agro Lestari Tbk PT | | 300,500 | | 731 |
Astra International Tbk PT (Å) | | 1,492,500 | | 7,717 |
Bank Danamon Indonesia Tbk PT (Ñ) | | 2,046,068 | | 1,293 |
Bank Mandiri Tbk PT | | 1,689,000 | | 1,067 |
Bank Negara Indonesia Persero Tbk PT | | 5,264,500 | | 1,506 |
Bank Rakyat Indonesia (Ñ) | | 6,721,933 | | 6,644 |
Indah Kiat Pulp and Paper Corp. Tbk PT (Æ) | | 4,141,000 | | 1,049 |
Indo Tambangraya Megah PT | | 8,000 | | 35 |
Indocement Tunggal Prakarsa Tbk PT | | 2,037,902 | | 3,528 |
Kalbe Farma Tbk PT | | 7,127,000 | | 1,622 |
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT | | 714,000 | | 764 |
Ramayana Lestari Sentosa Tbk PT (Å) | | 5,238,492 | | 488 |
Semen Gresik Persero Tbk PT | | 1,047,697 | | 941 |
Telekomunikasi Indonesia Tbk PT | | 7,231,188 | | 6,219 |
Timah Tbk PT | | 5,400,500 | | 1,589 |
United Tractors Tbk PT | | 316,000 | | 672 |
| | | | |
| | | | 35,865 |
| | | | |
| | |
| Israel - 1.2% | | | | |
Azorim-Investment Development & Construction Co., Ltd. (Æ) | | 35,657 | | 175 |
Bezeq Israeli Telecommunication Corp., Ltd. | | 1,136,903 | | 2,764 |
Delek Automotive Systems, Ltd. | | 78,128 | | 964 |
Israel Chemicals, Ltd. | | 61,497 | | 735 |
Makhteshim-Agan Industries, Ltd. | | 260,000 | | 1,098 |
Partner Communications Co., Ltd. | | 73,543 | | 1,444 |
Teva Pharmaceutical Industries, Ltd. - ADR | | 158,576 | | 9,313 |
| | | | |
| | | | 16,493 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Kazakhstan - 0.2% | | | | |
KazMunaiGas Exploration Production - GDR | | 100,200 | | 2,465 |
| | | | |
| | |
| Luxembourg - 0.6% | | | | |
Evraz Group SA - GDR (Æ) | | 67,673 | | 2,477 |
MHP SA - GDR (Æ) | | 50,880 | | 774 |
Millicom International Cellular SA | | 35,600 | | 3,143 |
Tenaris SA - ADR (Ñ) | | 50,400 | | 2,047 |
| | | | |
| | | | 8,441 |
| | | | |
| | |
| Malaysia - 1.3% | | | | |
AMMB Holdings BHD | | 1,689,035 | | 2,631 |
Bursa Malaysia BHD | | 259,800 | | 623 |
CIMB Group Holdings BHD | | 1,406,263 | | 6,230 |
IGB Corp. BHD | | 1,650,100 | | 945 |
KLCC Property Holdings BHD | | 256,000 | | 258 |
Kuala Lumpur Kepong BHD | | 119,700 | | 618 |
Lion Industries Corp. BHD | | 1,080,600 | | 597 |
MISC BHD | | 96,000 | | 268 |
PPB Group BHD | | 123,000 | | 682 |
Public Bank BHD | | 910,565 | | 3,424 |
Resorts World BHD | | 395,300 | | 356 |
Supermax Corp. BHD | | 530,700 | | 1,125 |
TA Enterprise BHD | | 2,029,000 | | 436 |
TA Global BHD (Æ) | | 1,217,400 | | 160 |
| | | | |
| | | | 18,353 |
| | | | |
| | |
| Mexico - 4.0% | | | | |
Alfa SAB de CV Class A | | 111,500 | | 868 |
America Movil SAB de CV | | 2,023,588 | | 21,114 |
Cemex SAB de CV - ADR (Æ) | | 54,200 | | 644 |
Coca-Cola Femsa SAB de CV | | 164,300 | | 1,151 |
Corp. Moctezuma SAB de CV (Å) | | 302,563 | | 753 |
Fomento Economico Mexicano SAB de CV | | 396,200 | | 1,879 |
Fomento Economico Mexicano SAB de CV - ADR | | 70,037 | | 3,315 |
Grupo Aeroportuario del Sureste SAB de CV - ADR | | 8,805 | | 487 |
Grupo Financiero Banorte SAB de CV Class O | | 1,068,290 | | 4,436 |
Grupo Financiero Inbursa SA Class O | | 694,226 | | 2,335 |
Grupo Mexico SAB de CV | | 713,097 | | 1,874 |
Grupo Televisa SA | | 70,900 | | 295 |
Grupo Televisa SA - ADR | | 33,500 | | 696 |
Megacable Holdings SAB de CV (Æ) | | 449,703 | | 1,134 |
Telmex Internacional SAB de CV (Ñ) | | 1,191,900 | | 1,141 |
Telmex Internacional SAB de CV - ADR | | 122,300 | | 2,336 |
Urbi Desarrollos Urbanos SAB de CV (Æ) | | 1,326,600 | | 3,059 |
Wal-Mart de Mexico SAB de CV | | 1,712,404 | | 3,986 |
Wal-Mart de Mexico SAB de CV - ADR | | 184,800 | | 4,290 |
| | | | |
| | | | 55,793 |
| | | | |
| | |
| Netherlands - 0.7% | | | | |
New World Resources NV (Æ) | | 141,740 | | 1,999 |
X5 Retail Group NV - GDR (Æ) | | 228,766 | | 8,118 |
| | | | |
| | | | 10,117 |
| | | | |
| | |
| Russell Emerging Markets Fund | | 83 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Nigeria - 0.3% | | | | |
First City Monument Bank PLC (Æ)(Ñ) | | 16,264,348 | | 833 |
Guaranty Trust Bank PLC (Ñ) | | 1,559,576 | | 187 |
Guaranty Trust Bank PLC - GDR | | 136,600 | | 1,058 |
Nigerian Breweries PLC | | 2,111,483 | | 993 |
United Bank for Africa PLC | | 17,559,778 | | 1,369 |
| | | | |
| | | | 4,440 |
| | | | |
| | |
| Oman - 0.1% | | | | |
Bank Muscat SAOG - GDR | | 108,173 | | 995 |
Bank Muscat SAOG - GDR (Ñ) | | 32,087 | | 295 |
| | | | |
| | | | 1,290 |
| | | | |
| | |
| Panama - 0.2% | | | | |
Copa Holdings SA Class A | | 45,100 | | 2,556 |
| | | | |
| | |
| Peru - 0.0% | | | | |
Cia de Minas Buenaventura SA - ADR | | 14,752 | | 485 |
| | | | |
| | |
| Philippines - 0.5% | | | | |
Alliance Global Group, Inc. (Æ) | | 10,446,500 | | 1,302 |
Megaworld Corp. | | 30,364,000 | | 895 |
Metro Pacific Investments Corp. (Æ) | | 12,903,000 | | 911 |
Metropolitan Bank & Trust | | 597,900 | | 710 |
Philippine Long Distance Telephone Co. | | 19,130 | | 1,070 |
Philippine Long Distance Telephone Co. - ADR | | 17,040 | | 958 |
Universal Robina Corp. | | 1,245,400 | | 708 |
| | | | |
| | | | 6,554 |
| | | | |
| | |
| Poland - 1.0% | | | | |
Bank Pekao SA | | 40,810 | | 2,316 |
KGHM Polska Miedz SA | | 307,834 | | 11,509 |
| | | | |
| | | | 13,825 |
| | | | |
| | |
| Qatar - 0.1% | | | | |
Qatar National Bank SAQ | | 41,908 | | 1,594 |
| | | | |
| | |
| Russia - 7.8% | | | | |
Aeroflot - Russian Airlines OJSC | | 590,000 | | 1,268 |
Gazprom OAO - ADR | | 887,859 | | 20,613 |
Kalina (Ñ)(Å) | | 10,800 | | 242 |
LSR Group - GDR (Æ) | | 118,000 | | 1,002 |
Luka Kotor AD Kotor - ADR (Ñ) | | 193,215 | | 11,052 |
Lukoil OAO - ADR | | 105,549 | | 6,021 |
Magnit OJSC (Å) | | 38,115 | | 3,320 |
Magnit OJSC - GDR | | 67,700 | | 1,262 |
Magnitogorsk Iron & Steel Works - GDR | | 20,648 | | 278 |
Mechel - ADR | | 120,726 | | 3,103 |
MMC Norilsk Nickel - ADR (Æ) | | 137,830 | | 2,646 |
Mobile Telesystems OJSC - ADR | | 448,584 | | 32,706 |
NovaTek OAO - GDR | | 44,124 | | 3,332 |
Novolipetsk Steel OJSC - GDR | | 56,984 | | 2,078 |
Novorossiysk Commercial Sea Port PJSC - GDR (Þ) | | 23,647 | | 319 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Novorossiysk Commercial Sea Port PJSC - GDR | | 127,338 | | 1,719 |
Raspadskaya (Å) | | 388,207 | | 2,774 |
Rosneft Oil Co. - GDR | | 429,297 | | 3,474 |
RusHydro (Æ) | | 24,000,000 | | 1,317 |
Sberbank of Russian Federation | | 2,488,820 | | 6,701 |
Seventh Continent (Æ)(Å) | | 38,051 | | 358 |
Severstal OAO - GDR (Æ) | | 36,434 | | 498 |
Surgutneftegaz - ADR | | 93,010 | | 889 |
TMK OAO - GDR (Æ) | | 43,739 | | 917 |
TMK OAO - GDR (Æ)(Þ) | | 35,600 | | 746 |
| | | | |
| | | | 108,635 |
| | | | |
| | |
| Singapore - 0.1% | | | | |
Yanlord Land Group, Ltd. | | 1,341,000 | | 1,654 |
| | | | |
| | |
| South Africa - 4.8% | | | | |
ABSA Group, Ltd. | | 87,394 | | 1,650 |
African Bank Investments, Ltd. | | 326,890 | | 1,571 |
AngloGold Ashanti, Ltd. (Ñ) | | 48,578 | | 2,039 |
ArcelorMittal South Africa, Ltd. Class H (Æ) | | 83,324 | | 959 |
Astral Foods, Ltd. | | 45,058 | | 677 |
Aveng, Ltd. | | 176,475 | | 888 |
Bidvest Group, Ltd. | | 246,062 | | 4,562 |
FirstRand, Ltd. | | 1,279,960 | | 3,526 |
Foschini, Ltd. | | 364,900 | | 3,370 |
Grindrod, Ltd. | | 565,750 | | 1,248 |
Impala Platinum Holdings, Ltd. | | 21,487 | | 605 |
Imperial Holdings, Ltd. | | 193,806 | | 2,566 |
Investec, Ltd. (Ñ) | | 98,049 | | 828 |
JD Group, Ltd./South Africa | | 204,951 | | 1,210 |
Kumba Iron Ore, Ltd. | | 26,686 | | 1,260 |
Lewis Group, Ltd. | | 151,600 | | 1,263 |
Massmart Holdings, Ltd. | | 260,343 | | 3,875 |
Mondi, Ltd. | | 255,393 | | 1,796 |
MTN Group, Ltd. | | 349,892 | | 5,151 |
Naspers, Ltd. Class N | | 9,952 | | 401 |
Pick n Pay Stores, Ltd. | | 166,572 | | 940 |
Pretoria Portland Cement Co., Ltd. | | 442,900 | | 1,985 |
Remgro, Ltd. | | 71,224 | | 949 |
Sanlam, Ltd. (Ñ) | | 444,656 | | 1,458 |
Sasol, Ltd. | | 167,583 | | 6,798 |
Shoprite Holdings, Ltd. | | 242,600 | | 2,586 |
Standard Bank Group, Ltd. | | 604,632 | | 9,373 |
Telkom SA, Ltd. | | 123,566 | | 619 |
Truworths International, Ltd. | | 161,103 | | 1,154 |
Woolworths Holdings, Ltd. | | 312,635 | | 992 |
| | | | |
| | | | 66,299 |
| | | | |
| | |
| South Korea - 11.1% | | | | |
Amorepacific Corp. (Ñ) | | 1,036 | | 782 |
Daegu Bank, Ltd. | | 78,900 | | 1,048 |
Dongbu Corp. (Ñ) | | 28,700 | | 169 |
Dongbu Insurance Co., Ltd. | | 115,940 | | 3,647 |
Dongkuk Steel Mill Co., Ltd. | | 26,150 | | 545 |
Dongwon F&B Co., Ltd. | | 10,420 | | 428 |
| | |
| 84 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Doosan Infracore Co., Ltd. (Æ) | | 100,720 | | 1,987 |
Glovis Co., Ltd. | | 12,655 | | 1,389 |
Hana Financial Group, Inc. | | 179,770 | | 5,562 |
Hanjin Heavy Industries & Construction Co., Ltd. | | 64,600 | | 1,606 |
Hankook Tire Co., Ltd. | | 68,000 | | 1,520 |
Hanyang Securities Co., Ltd. (Æ) | | 44,800 | | 390 |
Hynix Semiconductor, Inc. (Æ) | | 338,350 | | 8,509 |
Hyosung Corp. | | 17,790 | | 1,265 |
Hyundai Development Co. | | 32,370 | | 798 |
Hyundai Heavy Industries Co., Ltd. | | 6,073 | | 1,369 |
Hyundai Marine & Fire Insurance Co., Ltd. (Æ) | | 102,560 | | 1,890 |
Hyundai Mobis | | 16,702 | | 2,774 |
Hyundai Steel Co. | | 45,564 | | 3,734 |
Ilsung Pharmaceuticals Co., Ltd. | | 4,003 | | 330 |
KB Financial Group, Inc. | | 90,479 | | 4,374 |
KB Financial Group, Inc. - ADR | | 61,470 | | 3,000 |
KCC Corp. (Ñ) | | 4,456 | | 1,255 |
Kia Motors Corp. | | 65,840 | | 1,608 |
KIWOOM Securities Co., Ltd. (Æ) | | 32,340 | | 1,244 |
Korea Electric Power Corp. | | 132,982 | | 4,050 |
Korea Line Corp. (Æ) | | 14,214 | | 766 |
Korea Zinc Co., Ltd. | | 9,835 | | 1,712 |
Korean Air Lines Co., Ltd. (Æ) | | 33,772 | | 2,112 |
Korean Reinsurance Co. | | 49,755 | | 434 |
LG Corp. Class H | | 57,842 | | 3,927 |
LG Display Co., Ltd. (Ñ) | | 151,550 | | 6,424 |
LG Electronics, Inc. Class H | | 22,500 | | 2,441 |
LG Household & Health Care, Ltd. | | 10,533 | | 2,873 |
LG Innotek Co., Ltd. | | 24,991 | | 3,883 |
LG Telecom, Ltd. | | 219,200 | | 1,648 |
LIG Insurance Co., Ltd. | | 143,810 | | 2,858 |
Lumens Co., Ltd. (Æ) | | 140,811 | | 1,838 |
MegaStudy Co., Ltd. | | 5,754 | | 843 |
NHN Corp. (Æ)(Ñ) | | 7,918 | | 1,322 |
Orion Corp. | | 1,026 | | 269 |
POSCO | | 5,394 | | 2,422 |
S&T Daewoo Co., Ltd. (Æ) | | 47,010 | | 1,119 |
Samsung Electro-Mechanics Co., Ltd. | | 5,222 | | 658 |
Samsung Electronics Co., Ltd. | | 38,153 | | 28,856 |
Samsung Electronics Co., Ltd. - GDR(Þ) | | 12,215 | | 2,932 |
Samsung Electronics Co., Ltd. - GDR | | 16,490 | | 6,319 |
Samsung Fire & Marine Insurance Co., Ltd. | | 64,446 | | 11,888 |
Samsung SDI Co., Ltd. | | 2,878 | | 382 |
Shinhan Financial Group Co., Ltd. | | 90,365 | | 3,817 |
Shinsegae Co., Ltd. | | 5,500 | | 2,523 |
SK Holdings Co., Ltd. | | 5,902 | | 466 |
STX Pan Ocean Co., Ltd. | | 216,930 | | 2,539 |
Taewoong Co., Ltd. | | 25,300 | | 1,669 |
| | | | |
| | | | 154,213 |
| | | | |
| | |
| Switzerland - 0.1% | | | | |
Cie Financiere Richemont SA | | 243,868 | | 898 |
| | | | |
| | |
| Taiwan - 9.1% | | | | |
Ability Enterprise Co., Ltd. | | 558,000 | | 956 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Advanced Semiconductor Engineering, Inc. | | 193,220 | | 189 |
Alpha Networks, Inc. | | 1,008,691 | | 966 |
Altek Corp. | | 1,838,795 | | 3,058 |
AmTRAN Technology Co., Ltd. (Ñ) | | 1,180,000 | | 1,275 |
Asia Polymer | | 1,672,000 | | 1,505 |
Asustek Computer, Inc. | | 211,000 | | 405 |
AU Optronics Corp. | | 3,644,202 | | 4,238 |
AU Optronics Corp. - ADR | | 85,601 | | 992 |
China Development Financial Holding Corp. (Æ) | | 2,250,000 | | 629 |
Chinatrust Financial Holding Co., Ltd. | | 1,402,122 | | 787 |
Chroma ATE, Inc. (Æ) | | 368,000 | | 786 |
Compal Electronics, Inc. | | 1,441,599 | | 1,997 |
Coretronic Corp. | | 821,000 | | 1,243 |
Delta Electronics, Inc. | | 1,470,970 | | 4,861 |
Far Eastern New Century Corp. (Å) | | 961,158 | | 1,040 |
Formosa Chemicals & Fibre Corp. | | 566,820 | | 1,435 |
Foxconn Technology Co., Ltd. | | 184,000 | | 758 |
Gigabyte Technology Co., Ltd. | | 1,326,000 | | 1,457 |
Gloria Material Technology Corp. (Æ) | | 967,000 | | 688 |
Grand Pacific Petrochemical (Æ) | | 2,586,000 | | 1,213 |
HannStar Display Corp. (Æ) | | 5,092,000 | | 1,043 |
Holtek Semiconductor, Inc. | | 485,979 | | 738 |
HON HAI Precision Industry Co., Ltd. (Å) | | 2,369,308 | | 11,067 |
Hsin Kuang Steel Co., Ltd. | | 1,487,000 | | 1,528 |
Inventec Co., Ltd. | | 540,000 | | 311 |
Macronix International | | 4,427,634 | | 2,930 |
Masterlink Securities Corp. (Æ) | | 719,000 | | 285 |
MediaTek, Inc. | | 742,495 | | 12,492 |
Merry Electronics Co., Ltd. (Ñ) | | 754,000 | | 1,423 |
Nan Ya Plastics Corp. | | 831,991 | | 1,746 |
Novatek Microelectronics Corp., Ltd. | | 677,485 | | 2,307 |
Powertech Technology, Inc. | | 1,994,800 | | 7,085 |
Prime View International Co., Ltd. (Æ) | | 588,000 | | 1,131 |
Qisda Corp. (Æ) | | 1,645,000 | | 963 |
Quanta Computer, Inc. | | 2,090,000 | | 3,916 |
Radiant Opto-Electronics Corp. | | 992,870 | | 1,483 |
Sanyang Industry Co., Ltd. (Æ) | | 2,504,000 | | 1,036 |
Siliconware Precision Industries Co. | | 930,000 | | 1,136 |
Silitech Technology Corp. (Ñ) | | 165,000 | | 580 |
Sonix Technology Co., Ltd. (Ñ) | | 284,000 | | 708 |
St. Shine Optical Co., Ltd. | | 103,108 | | 821 |
Synnex Technology International Corp. | | 1,795,910 | | 4,273 |
Taiwan Fertilizer Co., Ltd. Class H | | 206,000 | | 653 |
Taiwan Hon Chuan Enterprise Co., Ltd. | | 664,000 | | 1,281 |
Taiwan Semiconductor Manufacturing Co., Ltd. (Ñ) | | 7,418,388 | | 14,469 |
Transcend Information, Inc. | | 461,000 | | 1,461 |
Tsann Kuen Enterprise Co., Ltd. | | 324,800 | | 765 |
TSRC Corp. | | 433,000 | | 627 |
U-Ming Marine Transport Corp. | | 435,000 | | 896 |
Uni-President Enterprises Corp. | | 1,019,742 | | 1,130 |
Unimicron Technology Corp. (Ñ) | | 1,348,620 | | 2,016 |
United Microelectronics Corp. (Æ) | | 11,919,718 | | 5,995 |
United Microelectronics Corp. - ADR (Æ)(Ñ) | | 717,920 | | 2,541 |
Walsin Lihwa Corp. (Æ) | | 1,140,000 | | 495 |
Wistron Corp. | | 516,167 | | 988 |
| | |
| Russell Emerging Markets Fund | | 85 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
WPG Holdings Co., Ltd. | | 350,000 | | 715 |
Yuanta Financial Holding Co., Ltd. | | 2,611,000 | | 1,551 |
Yung Shin Pharmaceutical Industrial Co., Ltd. | | 676,000 | | 754 |
| | | | |
| | | | 125,817 |
| | | | |
| | |
| Thailand - 2.1% | | | | |
Bangkok Bank PCL | | 155,500 | | 575 |
Banpu PCL | | 270,800 | | 5,322 |
Charoen Pokphand Foods PCL | | 3,300,800 | | 1,581 |
CiStar Comgisitic Capital, Co. Class Preferenc | | 538,200 | | 439 |
CP ALL PCL | | 2,184,799 | | 1,891 |
Hana Microelectronics PCL | | 623,500 | | 459 |
Home Product Center PCL | | 3,873,297 | | 646 |
Kasikornbank PCL | | 470,000 | | 1,306 |
Krung Thai Bank PCL | | 10,201,100 | | 3,878 |
PTT Exploration & Production PCL | | 651,400 | | 3,040 |
Ratchaburi Electricity Generating Holding PCL | | 270,600 | | 305 |
Siam City Bank PCL (Æ)(Ñ) | | 135,500 | | 134 |
Siam Commercial Bank PCL | | 1,818,842 | | 4,610 |
Thai Beverage PCL | | 9,594,456 | | 1,986 |
Thanachart Capital PCL | | 805,100 | | 565 |
Thoresen Thai Agencies PCL | | 3,114,990 | | 2,272 |
TPI Polene PCL | | 3,118,100 | | 790 |
| | | | |
| | | | 29,799 |
| | | | |
| | |
| Turkey - 4.9% | | | | |
Akbank TAS | | 265,127 | | 1,316 |
Anadolu Efes Biracilik Ve Malt Sanayii AS | | 307,140 | | 3,815 |
Arcelik AS | | 841,800 | | 3,691 |
Asya Katilim Bankasi AS (Æ) | | 557,776 | | 1,465 |
Aygaz AS | | 151,278 | | 660 |
BIM Birlesik Magazalar AS | | 27,397 | | 1,539 |
Cimsa Cimento Sanayi VE Tica | | 263,875 | | 1,568 |
Dogan Sirketler Grubu Holdings | | 4,622,735 | | 3,443 |
Dogus Otomotiv Servis ve Ticaret AS (Æ) | | 128,495 | | 550 |
EIS Eczacibasi Ilac ve Sinai ve
Finansal Yatirimlar Sanayi ve Ticaret AS | | 1,632,326 | | 2,977 |
Ford Otomotiv Sanayi AS | | 61,793 | | 486 |
Haci Omer Sabanci Holding AS | | 122,023 | | 553 |
Hurriyet Gazetecilik AS (Æ) | | 582,588 | | 645 |
Kardemir Karabuk Demir Celik
Sanayi ve Ticaret AS (Æ) | | 2,010,215 | | 964 |
Selcuk Ecza Deposu Ticaret ve Sanayi A.S. | | 445,863 | | 855 |
Tofas Turk Otomobil Fabrikasi AS | | 182,100 | | 755 |
Tupras Turkiye Petrol Rafine | | 94,208 | | 2,082 |
Turk Ekonomi Bankasi AS (Æ) | | 1,045,650 | | 1,723 |
Turk Hava Yollari | | 1,709,414 | | 5,619 |
Turkiye Garanti Bankasi AS | | 2,951,833 | | 14,345 |
Turkiye Halk Bankasi AS | | 338,778 | | 2,664 |
Turkiye Is Bankasi Class C | | 1,438,206 | | 5,013 |
Turkiye Vakiflar Bankasi Tao Class D | | 2,275,826 | | 5,977 |
Vestel Elektronik Sanayi (Æ) | | 727,034 | | 1,233 |
Yapi ve Kredi Bankasi AS (Æ) | | 1,355,099 | | 3,850 |
| | | | |
| | | | 67,788 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| United Arab Emirates - 0.1% | | | | |
DP World, Ltd. (Ñ) | | 1,627,471 | | 884 |
| | | | |
| | |
| United Kingdom - 3.5% | | | | |
Anglo American PLC (Æ)(Ñ) | | 338,284 | | 14,310 |
Antofagasta PLC | | 131,984 | | 2,013 |
Eurasian Natural Resources Corp. PLC | | 300,006 | | 5,584 |
Fresnillo PLC | | 57,926 | | 706 |
Hikma Pharmaceuticals PLC | | 314,810 | | 3,025 |
Kazakhmys PLC | | 214,100 | | 4,586 |
Old Mutual PLC | | 2,673,400 | | 4,748 |
SABMiller PLC | | 274,995 | | 8,603 |
Standard Chartered PLC | | 27,263 | | 727 |
Tullow Oil PLC (Ñ) | | 259,300 | | 4,485 |
| | | | |
| | | | 48,787 |
| | | | |
| | |
| United States - 0.6% | | | | |
Central European Distribution Corp. (Æ)(Ñ) | | 70,110 | | 2,429 |
CTC Media, Inc. (Ñ) | | 47,200 | | 797 |
NII Holdings, Inc. (Æ) | | 33,800 | | 1,434 |
Southern Copper Corp. (Ñ) | | 133,252 | | 4,075 |
| | | | |
| | | | 8,735 |
| | | | |
| | |
| Zimbabwe - 0.0% | | | | |
Delta Corp., Ltd. (Æ)(Å) | | 1,117,659 | | 503 |
| | | | |
| | |
Total Common Stocks
(cost $890,765) | | | | 1,254,907 |
| | | | |
| | |
| Preferred Stocks - 4.4% | | | | |
| Brazil - 3.2% | | | | |
Banco Bradesco SA | | 227,400 | | 4,161 |
Brasil Telecom SA (Æ) | | 355,826 | | 2,284 |
Centrais Eletricas Brasileiras SA | | 259,800 | | 4,514 |
Cia de Bebidas das Americas | | 55,500 | | 5,411 |
Cia Energetica de Minas Gerais (Ñ) | | 55,000 | | 872 |
Cia Energetica de Sao Paulo
Class Preferenc (Æ) | | 59,700 | | 865 |
Cia Paranaense de Energia | | 54,800 | | 1,116 |
Eletropaulo Metropolitana
Eletricidade de Sao Paulo SA | | 189,400 | | 4,184 |
Investimentos Itau SA | | 944,402 | | 6,514 |
Itau Unibanco Holding SA | | 239,737 | | 5,199 |
Petroleo Brasileiro SA (Æ) | | 218,800 | | 4,129 |
Telemar Norte Leste SA | | 27,769 | | 743 |
Ultrapar Participacoes SA | | 69,673 | | 3,287 |
Usinas Siderurgicas de Minas Gerais SA | | 23,521 | | 759 |
Vivo Participacoes SA | | 71 | | 2 |
| | | | |
| | | | 44,040 |
| | | | |
| | |
| Chile - 0.1% | | | | |
Embotelladora Andina SA | | 247,200 | | 893 |
| | | | |
| | |
| Colombia - 0.0% | | | | |
BanColombia SA | | 7,200 | | 85 |
| | | | |
| | |
| 86 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Russia - 0.3% | | | | |
AK Transneft OAO | | 3,570 | | 4,106 |
MDM Bank OAO (Æ)(Å) | | 1,093,505 | | 831 |
| | | | |
| | | | 4,937 |
| | | | |
| | |
| South Korea - 0.8% | | | | |
Samsung Electronics Co., Ltd. | | 24,765 | | 11,739 |
| | | | |
| | |
Total Preferred Stocks
(cost $43,695) | | | | 61,694 |
| | | | |
| | |
| Warrants & Rights - 0.2% | | | | |
| Cayman Islands - 0.0% | | | | |
Kingboard Chemical Holdings, Ltd.
2012 Warrants | | 23 | | 37 |
| | | | |
| | |
| Germany - 0.0% | | | | |
Deutsche Bank AG | | 5 | | 16 |
| | | | |
| | |
| Netherlands Antilles - 0.1% | | | | |
Merrill Lynch Capital Markets 2012 Warrants | | 743 | | 795 |
| | | | |
| | |
| Untied Kingdom - 0.0% | | | | |
Merrill Lynch International & Co. C.V.(Ñ) 2010 Warrants | | 556 | | 595 |
| | | | |
| | |
| United States - 0.1% | | | | |
Hon Hai Precision Industry Co., Ltd.(Ñ)(Þ) 2012 Warrants | | 212 | | 1,003 |
| | | | |
| | |
Total Warrants & Rights
(cost $2,686) | | | | 2,446 |
| | | | |
| | |
| Certificates of Participation - 0.0% | | | | |
| Untied Kingdom - 0.0% | | | | |
Jarir Marketing, Co. due 06/04/12 | | 641 | | 271 |
| | | | |
| | |
Total Certificates of Participation
(cost $270) | | | | 271 |
| | | | |
| | |
| Short-Term Investments - 3.8% | | | | |
| United States - 3.8% | | | | |
Russell U.S. Cash Management Fund (£) | | 52,855,620 | | 52,856 |
| | | | |
| | |
Total Short-Term Investments
(cost $52,856) | | | | 52,856 |
| | | | |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| Other Securities - 9.3% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 72,579,205 | | 72,579 | |
State Street Securities Lending Quality Trust (×) | | 56,274,166 | | 56,127 | |
| | | | | |
| | |
Total Other Securities
(cost $128,853) | | | | 128,706 | |
| | | | | |
| | |
Total Investments - 108.0%
(identified cost $1,119,125) | | | | 1,500,880 | |
| | |
Other Assets and Liabilities,
Net - (8.0%) | | | | (111,409 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 1,389,471 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 87 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
Hang Seng Index (Hong Kong) | | 120 | | HKD | | 91,715 | | 05/10 | | (15) |
JSE-40 Index (South Africa) | | 210 | | ZAR | | 54,062 | | 06/10 | | (43) |
Kospi 200 Index Futures (South Korea) | | 81 | | KRW | | 9,266,400 | | 06/10 | | 261 |
Mexican Bolsa Index | | 110 | | MXN | | 35,910 | | 06/10 | | (36) |
MSCI Taiwan Index | | 250 | | USD | | 7,138 | | 05/10 | | (131) |
S&P CNX Nifty Index (SGX) | | 490 | | USD | | 5,155 | | 05/10 | | (62) |
| | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | (26) |
| | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 88 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Bank of America | | USD | | 199 | | MXN | | 2,500 | | 06/16/10 | | 3 | |
Bank of America | | USD | | 200 | | ZAR | | 1,500 | | 06/17/10 | | 2 | |
Bank of America | | HKD | | 10,000 | | USD | | 1,289 | | 06/17/10 | | — | |
Barclays Bank PLC | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
Barclays Bank PLC | | USD | | 367 | | MXN | | 4,714 | | 06/16/10 | | 14 | |
Barclays Bank PLC | | USD | | 832 | | ZAR | | 6,329 | | 06/17/10 | | 18 | |
Brown Brother’s Harriman Co. | | USD | | 2,886 | | BRL | | 5,250 | | 05/04/10 | | 135 | |
Brown Brother’s Harriman Co. | | USD | | 85 | | GBP | | 56 | | 05/04/10 | | 1 | |
Brown Brother’s Harriman Co. | | USD | | 130 | | GBP | | 85 | | 05/04/10 | | 1 | |
Brown Brother’s Harriman Co. | | USD | | 1,081 | | INR | | 49,500 | | 06/16/10 | | 30 | |
Brown Brother’s Harriman Co. | | USD | | 395 | | MXN | | 5,000 | | 06/16/10 | | 9 | |
Brown Brother’s Harriman Co. | | BRL | | 5,250 | | USD | | 3,034 | | 05/04/10 | | 13 | |
Brown Brother’s Harriman Co. | | HKD | | 8,000 | | USD | | 1,030 | | 06/17/10 | | — | |
Brown Brother’s Harriman Co. | | HKD | | 10,000 | | USD | | 1,289 | | 06/17/10 | | 1 | |
Brown Brother’s Harriman Co. | | ILS | | 147 | | USD | | 39 | | 05/03/10 | | — | |
Brown Brother’s Harriman Co. | | INR | | 20,000 | | USD | | 447 | | 06/16/10 | | (2 | ) |
Brown Brother’s Harriman Co. | | MXN | | 4,000 | | USD | | 317 | | 06/16/10 | | (6 | ) |
Brown Brother’s Harriman Co. | | ZAR | | 367 | | USD | | 49 | | 05/05/10 | | — | |
Brown Brother’s Harriman Co. | | ZAR | | 3,000 | | USD | | 397 | | 06/17/10 | | (6 | ) |
Credit Suisse First Boston | | HKD | | 4,000 | | USD | | 516 | | 06/17/10 | | 1 | |
Credit Suisse First Boston | | ZAR | | 938 | | USD | | 126 | | 05/03/10 | | (1 | ) |
Deutsche Bank | | USD | | 2,745 | | BRL | | 4,750 | | 05/04/10 | | (12 | ) |
Deutsche Bank | | USD | | 2,884 | | BRL | | 5,250 | | 05/04/10 | | 137 | |
Deutsche Bank | | USD | | 2,686 | | BRL | | 4,750 | | 06/02/10 | | 30 | |
Deutsche Bank | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
Deutsche Bank | | USD | | 3,867 | | HKD | | 30,000 | | 06/17/10 | | (1 | ) |
Deutsche Bank | | USD | | 1,378 | | KRW | | 1,575,000 | | 06/16/10 | | 41 | |
Deutsche Bank | | USD | | 367 | | MXN | | 4,714 | | 06/16/10 | | 14 | |
Deutsche Bank | | USD | | 394 | | MXN | | 5,000 | | 06/16/10 | | 10 | |
Deutsche Bank | | USD | | 570 | | MXN | | 7,000 | | 06/16/10 | | (4 | ) |
Deutsche Bank | | USD | | 660 | | ZAR | | 5,000 | | 06/17/10 | | 11 | |
Deutsche Bank | | USD | | 832 | | ZAR | | 6,329 | | 06/17/10 | | 18 | |
Deutsche Bank | | BRL | | 4,750 | | USD | | 2,703 | | 05/04/10 | | (29 | ) |
Deutsche Bank | | BRL | | 5,250 | | USD | | 3,034 | | 05/04/10 | | 13 | |
Deutsche Bank | | KRW | | 500,000 | | USD | | 444 | | 06/16/10 | | (6 | ) |
HSBC | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
HSBC | | USD | | 2,579 | | HKD | | 20,000 | | 06/17/10 | | (2 | ) |
HSBC | | USD | | 3,868 | | HKD | | 30,000 | | 06/17/10 | | (3 | ) |
HSBC | | USD | | 1,387 | | KRW | | 1,575,000 | | 06/16/10 | | 33 | |
HSBC | | USD | | 366 | | MXN | | 4,714 | | 06/16/10 | | 15 | |
HSBC | | USD | | 794 | | MXN | | 10,000 | | 06/16/10 | | 14 | |
HSBC | | USD | | 673 | | ZAR | | 5,000 | | 06/17/10 | | (2 | ) |
HSBC | | USD | | 831 | | ZAR | | 6,329 | | 06/17/10 | | 20 | |
HSBC | | USD | | 2,424 | | ZAR | | 18,000 | | 06/17/10 | | (6 | ) |
HSBC | | HKD | | 3,000 | | USD | | 387 | | 06/17/10 | | — | |
HSBC | | KRW | | 700,000 | | USD | | 612 | | 06/16/10 | | (19 | ) |
HSBC | | MXN | | 3,000 | | USD | | 244 | | 06/16/10 | | 1 | |
HSBC | | ZAR | | 3,000 | | USD | | 406 | | 06/17/10 | | 3 | |
JP Morgan | | USD | | 2,745 | | BRL | | 4,750 | | 05/04/10 | | (12 | ) |
JP Morgan | | USD | | 2,687 | | BRL | | 4,750 | | 06/02/10 | | 29 | |
JP Morgan | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
JP Morgan | | USD | | 1,082 | | INR | | 49,500 | | 06/16/10 | | 29 | |
JP Morgan | | USD | | 1,386 | | KRW | | 1,575,000 | | 06/16/10 | | 33 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 89 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
JP Morgan | | USD | | 367 | | MXN | | 4,714 | | 06/16/10 | | 14 | |
JP Morgan | | USD | | 832 | | ZAR | | 6,329 | | 06/17/10 | | 18 | |
JP Morgan | | BRL | | 4,750 | | USD | | 2,703 | | 05/04/10 | | (29 | ) |
Mellon Bank | | USD | | 578 | | BRL | | 1,000 | | 05/04/10 | | (3 | ) |
Mellon Bank | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
Mellon Bank | | USD | | 82 | | HUF | | 16,702 | | 05/03/10 | | 1 | |
Mellon Bank | | USD | | 3,289 | | INR | | 150,000 | | 06/16/10 | | 79 | |
Mellon Bank | | USD | | 2,647 | | KRW | | 3,000,000 | | 06/16/10 | | 57 | |
Mellon Bank | | USD | | 367 | | MXN | | 4,714 | | 06/16/10 | | 14 | |
Mellon Bank | | USD | | 832 | | ZAR | | 6,329 | | 06/17/10 | | 18 | |
Mellon Bank | | BRL | | 1,000 | | USD | | 565 | | 05/04/10 | | (10 | ) |
Mellon Bank | | MXN | | 1,038 | | USD | | 85 | | 05/03/10 | | 1 | |
National Australia Bank LTD. | | HKD | | 4,000 | | USD | | 515 | | 06/17/10 | | — | |
National Australia Bank LTD. | | MXN | | 2,000 | | USD | | 162 | | 06/16/10 | | — | |
National Australia Bank LTD. | | ZAR | | 3,000 | | USD | | 408 | | 06/17/10 | | 5 | |
Royal Bank of Scotland | | USD | | 2,745 | | BRL | | 4,750 | | 05/04/10 | | (12 | ) |
Royal Bank of Scotland | | USD | | 2,884 | | BRL | | 5,250 | | 05/04/10 | | 136 | |
Royal Bank of Scotland | | USD | | 2,684 | | BRL | | 4,750 | | 06/02/10 | | 33 | |
Royal Bank of Scotland | | USD | | 32 | | GBP | | 21 | | 05/06/10 | | — | |
Royal Bank of Scotland | | USD | | 115 | | GBP | | 75 | | 05/06/10 | | — | |
Royal Bank of Scotland | | USD | | 10 | | HUF | | 1,992 | | 05/04/10 | | — | |
Royal Bank of Scotland | | BRL | | 4,750 | | USD | | 2,700 | | 05/04/10 | | (32 | ) |
Royal Bank of Scotland | | BRL | | 5,250 | | USD | | 3,034 | | 05/04/10 | | 13 | |
Royal Bank of Scotland | | HKD | | 20,000 | | USD | | 2,577 | | 06/17/10 | | — | |
Royal Bank of Scotland | | ILS | | 102 | | USD | | 28 | | 05/03/10 | | — | |
Royal Bank of Scotland | | ILS | | 111 | | USD | | 30 | | 05/03/10 | | — | |
Royal Bank of Scotland | | MXN | | 6,000 | | USD | | 487 | | 06/16/10 | | 2 | |
Royal Bank of Scotland | | TRY | | 41 | | USD | | 28 | | 05/04/10 | | — | |
Royal Bank of Scotland | | ZAR | | 324 | | USD | | 44 | | 05/07/10 | | — | |
Societe Generale | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
Societe Generale | | USD | | 367 | | MXN | | 4,714 | | 06/16/10 | | 15 | |
Societe Generale | | USD | | 831 | | ZAR | | 6,329 | | 06/17/10 | | 19 | |
State Street Bank and Trust Company | | USD | | 578 | | BRL | | 1,000 | | 05/04/10 | | (3 | ) |
State Street Bank and Trust Company | | USD | | 2,745 | | BRL | | 4,750 | | 05/04/10 | | (12 | ) |
State Street Bank and Trust Company | | USD | | 2,884 | | BRL | | 5,250 | | 05/04/10 | | 137 | |
State Street Bank and Trust Company | | USD | | 3,391 | | BRL | | 6,000 | | 05/04/10 | | 61 | |
State Street Bank and Trust Company | | USD | | 3,467 | | BRL | | 6,000 | | 05/04/10 | | (15 | ) |
State Street Bank and Trust Company | | USD | | 2,687 | | BRL | | 4,750 | | 06/02/10 | | 29 | |
State Street Bank and Trust Company | | USD | | 23 | | GBP | | 15 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | USD | | 51 | | GBP | | 33 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | USD | | 39 | | HKD | | 302 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 54 | | HKD | | 418 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 36 | | HKD | | 279 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 53 | | HKD | | 412 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 84 | | HKD | | 654 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 234 | | HKD | | 1,818 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 38 | | IDR | | 341,546 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 40 | | IDR | | 357,015 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 224 | | INR | | 10,000 | | 06/16/10 | | 1 | |
State Street Bank and Trust Company | | USD | | 1,084 | | INR | | 49,500 | | 06/16/10 | | 27 | |
State Street Bank and Trust Company | | USD | | 80 | | KRW | | 88,458 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 243 | | KRW | | 269,079 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | USD | | 1,051 | | KRW | | 1,164,007 | | 05/03/10 | | (1 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| 90 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
State Street Bank and Trust Company | | USD | | 1,386 | | KRW | | 1,575,000 | | 06/16/10 | | 33 | |
State Street Bank and Trust Company | | USD | | 12 | | PHP | | 542 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | USD | | 5 | | PHP | | 222 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | USD | | 7 | | PHP | | 293 | | 05/05/10 | | — | |
State Street Bank and Trust Company | | BRL | | 36 | | USD | | 21 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | BRL | | 63 | | USD | | 36 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | BRL | | 102 | | USD | | 59 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | BRL | | 1,000 | | USD | | 564 | | 05/04/10 | | (11 | ) |
State Street Bank and Trust Company | | BRL | | 4,750 | | USD | | 2,703 | | 05/04/10 | | (29 | ) |
State Street Bank and Trust Company | | BRL | | 5,250 | | USD | | 3,034 | | 05/04/10 | | 13 | |
State Street Bank and Trust Company | | BRL | | 6,000 | | USD | | 3,417 | | 05/04/10 | | (35 | ) |
State Street Bank and Trust Company | | BRL | | 6,000 | | USD | | 3,467 | | 05/04/10 | | 15 | |
State Street Bank and Trust Company | | HKD | | 4,535 | | USD | | 584 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | HKD | | 10,000 | | USD | | 1,289 | | 06/17/10 | | 1 | |
State Street Bank and Trust Company | | INR | | 50,000 | | USD | | 1,102 | | 06/16/10 | | (21 | ) |
State Street Bank and Trust Company | | INR | | 58,000 | | USD | | 1,268 | | 06/16/10 | | (34 | ) |
State Street Bank and Trust Company | | KRW | | 2,500,000 | | USD | | 2,181 | | 06/16/10 | | (71 | ) |
State Street Bank and Trust Company | | MXN | | 5,000 | | USD | | 396 | | 06/16/10 | | (9 | ) |
State Street Bank and Trust Company | | MYR | | 149 | | USD | | 47 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | MYR | | 54 | | USD | | 17 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | THB | | 651 | | USD | | 20 | | 05/04/10 | | — | |
State Street Bank and Trust Company | | THB | | 320 | | USD | | 10 | | 05/06/10 | | — | |
State Street Bank and Trust Company | | THB | | 1,326 | | USD | | 41 | | 05/06/10 | | — | |
State Street Bank and Trust Company | | TRY | | 30 | | USD | | 20 | | 05/03/10 | | — | |
State Street Bank and Trust Company | | ZAR | | 10,000 | | USD | | 1,343 | | 06/17/10 | | (1 | ) |
UBS | | USD | | 54 | | HKD | | 418 | | 05/03/10 | | — | |
UBS | | USD | | 32 | | HKD | | 245 | | 05/04/10 | | — | |
UBS | | USD | | 54 | | HUF | | 10,809 | | 05/05/10 | | — | |
UBS | | USD | | 47 | | ZAR | | 348 | | 05/04/10 | | 1 | |
UBS | | USD | | 79 | | ZAR | | 591 | | 05/04/10 | | 1 | |
UBS | | USD | | 427 | | ZAR | | 3,177 | | 05/05/10 | | 3 | |
UBS | | USD | | 58 | | ZAR | | 427 | | 05/06/10 | | — | |
UBS | | USD | | 87 | | ZAR | | 639 | | 05/07/10 | | — | |
UBS | | HKD | | 20,000 | | USD | | 2,578 | | 06/17/10 | | 1 | |
UBS | | MXN | | 8,000 | | USD | | 632 | | 06/16/10 | | (15 | ) |
UBS | | ZAR | | 8,000 | | USD | | 1,060 | | 06/17/10 | | (15 | ) |
Westpac Banking Corporation | | USD | | 1,841 | | HKD | | 14,286 | | 06/17/10 | | (1 | ) |
Westpac Banking Corporation | | USD | | 1,084 | | INR | | 49,500 | | 06/16/10 | | 27 | |
Westpac Banking Corporation | | USD | | 366 | | MXN | | 4,714 | | 06/16/10 | | 15 | |
Westpac Banking Corporation | | USD | | 831 | | ZAR | | 6,329 | | 06/17/10 | | 20 | |
| | | | | | | | | | | | | |
| | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | | | 1,013 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 91 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | |
| Index Swap Contracts | |
Fund Receives Underlying Security | | Counter Party | | Notional
Amount | | Fund Pays Floating Rate | | Termination
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | |
Bovespa Index Future | | Goldman Sachs | | BRL 280 | | Total Return of Underlying Security at Termination | | 06/16/10 | | (444 | ) |
| | | | | | | | | | | |
| | | |
Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts | | | | | | (444 | ) |
| | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 92 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | |
Austria | | $ | — | | $ | 2,530 | | $ | — | | $ | 2,530 | | 0.2 | |
Bermuda | | | 14,502 | | | 9,484 | | | — | | | 23,986 | | 1.7 | |
Brazil | | | 133,543 | | | — | | | — | | | 133,543 | | 9.6 | |
Canada | | | 2,030 | | | — | | | — | | | 2,030 | | 0.2 | |
Cayman Islands | | | 7,132 | | | 44,238 | | | — | | | 51,370 | | 3.7 | |
Chile | | | 9,924 | | | — | | | — | | | 9,924 | | 0.7 | |
China | | | — | | | 68,716 | | | — | | | 68,716 | | 4.9 | |
Colombia | | | 7,086 | | | — | | | — | | | 7,086 | | 0.5 | |
Cyprus | | | 1,355 | | | — | | | — | | | 1,355 | | 0.1 | |
Czech Republic | | | — | | | 496 | | | — | | | 496 | | — | * |
Egypt | | | 5,483 | | | 5,651 | | | — | | | 11,134 | | 0.8 | |
Germany | | | 1,921 | | | — | | | — | | | 1,921 | | 0.1 | |
Greece | | | 4,472 | | | — | | | — | | | 4,472 | | 0.3 | |
Hong Kong | | | 131 | | | 35,542 | | | — | | | 35,673 | | 2.6 | |
Hungary | | | 641 | | | 8,355 | | | — | | | 8,996 | | 0.7 | |
India | | | 33,804 | | | 65,531 | | | 57 | | | 99,392 | | 7.2 | |
Indonesia | | | 35 | | | 35,830 | | | — | | | 35,865 | | 2.6 | |
Israel | | | 9,313 | | | 7,180 | | | — | | | 16,493 | | 1.2 | |
Kazakhstan | | | 2,465 | | | — | | | — | | | 2,465 | | 0.2 | |
Luxembourg | | | 7,667 | | | 774 | | | — | | | 8,441 | | 0.6 | |
Malaysia | | | — | | | 18,353 | | | — | | | 18,353 | | 1.3 | |
Mexico | | | 55,793 | | | — | | | — | | | 55,793 | | 4.0 | |
Netherlands | | | — | | | 10,117 | | | — | | | 10,117 | | 0.7 | |
Nigeria | | | 3,382 | | | 1,058 | | | — | | | 4,440 | | 0.3 | |
Oman | | | 1,290 | | | — | | | — | | | 1,290 | | 0.1 | |
Panama | | | 2,556 | | | — | | | — | | | 2,556 | | 0.2 | |
Peru | | | 485 | | | — | | | — | | | 485 | | — | * |
Philippines | | | 2,028 | | | 4,526 | | | — | | | 6,554 | | 0.5 | |
Poland | | | — | | | 13,825 | | | — | | | 13,825 | | 1.0 | |
Qatar | | | — | | | 1,594 | | | — | | | 1,594 | | 0.1 | |
Russia | | | 63,257 | | | 45,378 | | | — | | | 108,635 | | 7.8 | |
Singapore | | | — | | | 1,654 | | | — | | | 1,654 | | 0.1 | |
South Africa | | | 4,625 | | | 61,674 | | | — | | | 66,299 | | 4.8 | |
South Korea | | | 3,000 | | | 151,213 | | | — | | | 154,213 | | 11.1 | |
Switzerland | | | — | | | 898 | | | — | | | 898 | | 0.1 | |
Taiwan | | | 3,533 | | | 122,284 | | | — | | | 125,817 | | 9.1 | |
Thailand | | | 20,171 | | | 9,189 | | | 439 | | | 29,799 | | 2.1 | |
Turkey | | | 3,815 | | | 63,973 | | | — | | | 67,788 | | 4.9 | |
United Arab Emirates | | | 884 | | | — | | | — | | | 884 | | 0.1 | |
United Kingdom | | | 7,611 | | | 41,176 | | | — | | | 48,787 | | 3.5 | |
United States | | | 8,735 | | | — | | | — | | | 8,735 | | 0.6 | |
Zimbabwe | | | 503 | | | — | | | — | | | 503 | | — | * |
Preferred Stocks | | | 49,955 | | | 11,739 | | | — | | | 61,694 | | 4.4 | |
Warrants & Rights | | | 2,446 | | | — | | | — | | | 2,446 | | 0.2 | |
Certificates of Participation | | | — | | | 271 | | | — | | | 271 | | — | * |
Short-Term Investments | | | — | | | 52,856 | | | — | | | 52,856 | | 3.8 | |
Other Securities | | | — | | | 128,706 | | | — | | | 128,706 | | 9.3 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 475,573 | | | 1,024,811 | | | 496 | | | 1,500,880 | | 108.0 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (8.0 | ) |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 93 |
Russell Investment Company
Russell Emerging Markets Fund
Presentation of Portfolio Holdings, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | Level 3 | | Total | | |
| | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | |
Futures Contracts | | (26 | ) | | — | | — | | (26 | ) | | (— | )* |
Foreign Currency Exchange Contracts | | (27 | ) | | 1,040 | | — | | 1,013 | | | 0.1 | |
Index Swaps | | (444 | ) | | — | | — | | (444 | ) | | (— | )* |
| | | | | | | | | | | | | |
Total Other Financial Instruments** | | (497 | ) | | 1,040 | | — | | 543 | | | | |
| | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending April 31, 2010 were less than 1% of net assets.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts |
| | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | | — | | | | 1,489 |
Daily variation margin on futures contracts* | | | 261 | | | | — |
| | | | | | | |
Total | | $ | 261 | | | $ | 1,489 |
| | | | | | | |
| | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 476 |
Daily variation margin on futures contracts* | | | 287 | | | | — |
Unrealized depreciation on index swap contracts | | | 444 | | | | — |
| | | | | | | |
Total | | $ | 731 | | | $ | 476 |
| | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | |
Futures contracts | | $ | (6 | ) | | $ | — |
Index swap contracts | | | 417 | | | | — |
Foreign currency-related transactions | | | — | | | | 1,442 |
| | | | | | | |
Total | | $ | 411 | | | $ | 1,442 |
| | | | | | | |
| | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | |
Futures contracts | | $ | 1,189 | | | $ | — |
Index swap contracts | | | 139 | | | | — |
Foreign currency-related transactions | | | — | | | | 5 |
| | | | | | | |
Total | | $ | 1,328 | | | $ | 5 |
| | | | | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 94 | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any
transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,162.30 | | $ | 1,015.32 |
Expenses Paid During Period* | | $ | 10.24 | | $ | 9.54 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.91% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,167.10 | | $ | 1,019.04 |
Expenses Paid During Period* | | $ | 6.23 | | $ | 5.81 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.16% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,168.10 | | $ | 1,020.28 |
Expenses Paid During Period* | | $ | 4.89 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 95 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 96.4% | | | | |
| Consumer Discretionary - 14.4% | | | | |
Abercrombie & Fitch Co. Class A | | 9,800 | | 429 |
Amazon.com, Inc. (Æ) | | 40,600 | | 5,565 |
Avon Products, Inc. | | 22,200 | | 718 |
Bed Bath & Beyond, Inc. (Æ) | | 4,100 | | 188 |
Big Lots, Inc. (Æ) | | 9,000 | | 344 |
Carnival Corp. | | 8,100 | | 338 |
Coach, Inc. (Ñ) | | 40,800 | | 1,703 |
Columbia Sportswear Co. (Ñ) | | 3,200 | | 178 |
Comcast Corp.Class A | | 125,300 | �� | 2,377 |
Darden Restaurants, Inc. | | 14,200 | | 635 |
DIRECTV, Inc. (Æ) | | 5,600 | | 203 |
eBay, Inc. (Æ) | | 55,700 | | 1,326 |
Family Dollar Stores, Inc. (Ñ) | | 5,200 | | 206 |
Gannett Co., Inc. | | 21,700 | | 369 |
Gap, Inc. (The) | | 55,100 | | 1,363 |
Harley-Davidson, Inc. (Ñ) | | 33,000 | | 1,116 |
Home Depot, Inc. | | 13,500 | | 476 |
International Game Technology | | 16,100 | | 339 |
ITT Educational Services, Inc. (Æ)(Ñ) | | 1,200 | | 121 |
Johnson Controls, Inc. | | 43,000 | | 1,444 |
KB Home (Ñ) | | 10,000 | | 185 |
Kohl’s Corp. (Æ) | | 13,100 | | 720 |
Las Vegas Sands Corp. (Æ)(Ñ) | | 117,320 | | 2,917 |
Lennar Corp. Class A (Ñ) | | 28,800 | | 573 |
Lowe’s Cos., Inc. | | 139,520 | | 3,784 |
Mattel, Inc. | | 6,700 | | 154 |
McDonald’s Corp. | | 8,300 | | 586 |
Nike, Inc. Class B | | 34,200 | | 2,596 |
Omnicom Group, Inc. | | 34,600 | | 1,476 |
Pulte Group, Inc. (Æ)(Ñ) | | 135,470 | | 1,773 |
Rent-A-Center, Inc. Class A (Æ)(Ñ) | | 28,000 | | 723 |
Royal Caribbean Cruises, Ltd. (Æ)(Ñ) | | 9,500 | | 341 |
Staples, Inc. | | 91,500 | | 2,153 |
Starbucks Corp. | | 71,600 | | 1,860 |
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö) | | 30,600 | | 1,668 |
Target Corp. | | 46,600 | | 2,650 |
Time Warner Cable, Inc. | | 31,547 | | 1,775 |
Time Warner, Inc. | | 22,291 | | 737 |
TJX Cos., Inc. | | 5,700 | | 264 |
Toll Brothers, Inc. (Æ) | | 24,700 | | 558 |
VF Corp. | | 6,800 | | 588 |
Wal-Mart Stores, Inc. | | 48,400 | | 2,597 |
Walt Disney Co. (The) | | 81,400 | | 2,999 |
Whirlpool Corp. (Ñ) | | 8,000 | | 871 |
Wyndham Worldwide Corp. | | 69,940 | | 1,875 |
Yum! Brands, Inc. | | 3,300 | | 140 |
| | | | |
| | | | 56,001 |
| | | | |
| | |
| Consumer Staples - 5.9% | | | | |
Altria Group, Inc. | | 42,800 | | 907 |
Church & Dwight Co., Inc. | | 18,760 | | 1,299 |
Coca-Cola Co. (The) | | 51,700 | | 2,763 |
Coca-Cola Enterprises, Inc. | | 4,000 | | 111 |
Colgate-Palmolive Co. | | 11,320 | | 952 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
ConAgra Foods, Inc. | | 15,500 | | 379 |
CVS Caremark Corp. | | 99,110 | | 3,660 |
General Mills, Inc. | | 21,900 | | 1,559 |
Kimberly-Clark Corp. | | 8,600 | | 527 |
Kraft Foods, Inc. Class A | | 24,194 | | 716 |
Kroger Co. (The) | | 16,200 | | 360 |
Mead Johnson Nutrition Co. | | 22,300 | | 1,151 |
PepsiCo, Inc. | | 41,620 | | 2,715 |
Philip Morris International, Inc. | | 17,400 | | 854 |
Procter & Gamble Co. (The) | | 47,185 | | 2,933 |
Sara Lee Corp. | | 9,300 | | 132 |
SYSCO Corp. | | 21,400 | | 675 |
Whole Foods Market, Inc. (Æ)(Ñ) | | 33,230 | | 1,297 |
| | | | |
| | | | 22,990 |
| | | | |
| | |
| Energy - 10.6% | | | | |
Anadarko Petroleum Corp. | | 2,180 | | 136 |
Apache Corp. | | 18,590 | | 1,892 |
Chevron Corp. | | 72,587 | | 5,911 |
ConocoPhillips | | 23,379 | | 1,384 |
Devon Energy Corp. | | 43,200 | | 2,909 |
El Paso Corp. | | 180,090 | | 2,179 |
EOG Resources, Inc. | | 8,300 | | 931 |
Exxon Mobil Corp. | | 91,546 | | 6,211 |
FMC Technologies, Inc. (Æ)(Ñ) | | 47,400 | | 3,208 |
Halliburton Co. | | 66,500 | | 2,038 |
National Oilwell Varco, Inc. | | 79,400 | | 3,496 |
Noble Corp. | | 9,800 | | 387 |
Occidental Petroleum Corp. | | 30,510 | | 2,705 |
Royal Dutch Shell PLC - ADR (Ñ) | | 6,300 | | 395 |
Schlumberger, Ltd. (Ñ) | | 75,330 | | 5,380 |
Southwestern Energy Co. (Æ) | | 17,760 | | 705 |
Transocean, Ltd. (Æ) | | 19,400 | | 1,406 |
| | | | |
| | | | 41,273 |
| | | | |
| | |
| Financial Services - 16.8% | | | | |
ACE, Ltd. | | 33,500 | | 1,782 |
Aflac, Inc. | | 16,700 | | 851 |
Alexandria Real Estate Equities, Inc. (ö) | | 6,000 | | 425 |
Allstate Corp. (The) | | 4,000 | | 131 |
American Express Co. | | 4,800 | | 221 |
Bank of America Corp. | | 407,148 | | 7,259 |
Bank of New York Mellon Corp. (The) | | 47,956 | | 1,493 |
BB&T Corp. | | 17,900 | | 595 |
Berkshire Hathaway, Inc. Class B (Æ) | | 6,000 | | 462 |
Capital One Financial Corp. | | 17,170 | | 745 |
Charles Schwab Corp. (The) | | 150,800 | | 2,909 |
Citigroup, Inc. (Æ)(Ñ) | | 459,845 | | 2,009 |
CME Group, Inc. Class A | | 6,900 | | 2,266 |
Comerica, Inc. (Ñ) | | 41,100 | | 1,726 |
Digital Realty Trust, Inc. (ö)(Ñ) | | 5,800 | | 340 |
Discover Financial Services | | 102,700 | | 1,588 |
E*Trade Financial Corp. (Æ)(Ñ) | | 660,850 | | 1,110 |
Fifth Third Bancorp | | 89,390 | | 1,333 |
Goldman Sachs Group, Inc. (The) | | 25,500 | | 3,703 |
Health Care REIT, Inc. (ö) | | 6,100 | | 274 |
IntercontinentalExchange, Inc. (Æ) | | 23,100 | | 2,694 |
| | |
| 96 | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
JPMorgan Chase & Co. | | 129,220 | | 5,502 |
Kimco Realty Corp. (ö) | | 6,000 | | 94 |
Mastercard, Inc. Class A | | 3,100 | | 769 |
MetLife, Inc. | | 47,280 | | 2,155 |
Morgan Stanley | | 35,500 | | 1,073 |
NASDAQ OMX Group, Inc. (The) (Æ) | | 15,200 | | 319 |
New York Community Bancorp, Inc. (Ñ) | | 10,800 | | 178 |
PNC Financial Services Group, Inc. | | 38,400 | | 2,581 |
Principal Financial Group, Inc. | | 7,300 | | 213 |
Prudential Financial, Inc. | | 24,000 | | 1,525 |
Regions Financial Corp. (Ñ) | | 14,000 | | 124 |
RenaissanceRe Holdings, Ltd. | | 7,500 | | 420 |
Senior Housing Properties Trust (ö) | | 3,300 | | 74 |
Simon Property Group, Inc. (ö) | | 4,268 | | 380 |
State Street Corp. | | 18,600 | | 809 |
SunTrust Banks, Inc. | | 12,200 | | 361 |
T Rowe Price Group, Inc. (Ñ) | | 15,990 | | 920 |
US Bancorp | | 29,800 | | 798 |
Visa, Inc. | | 47,005 | | 4,241 |
Wells Fargo & Co. | | 200,140 | | 6,627 |
XL Capital, Ltd. Class A | | 3,400 | | 60 |
Zions Bancorporation (Ñ) | | 78,200 | | 2,247 |
| | | | |
| | | | 65,386 |
| | | | |
| | |
| Health Care - 13.0% | | | | |
Abbott Laboratories | | 92,300 | | 4,722 |
Aetna, Inc. | | 12,200 | | 361 |
Alexion Pharmaceuticals, Inc. (Æ) | | 16,200 | | 889 |
Allergan, Inc. | | 52,500 | | 3,344 |
Amgen, Inc. (Æ) | | 27,640 | | 1,585 |
Baxter International, Inc. | | 13,800 | | 652 |
Biogen Idec, Inc. (Æ) | | 7,700 | | 410 |
Bristol-Myers Squibb Co. | | 19,500 | | 493 |
Cardinal Health, Inc. | | 11,200 | | 389 |
Celgene Corp. (Æ) | | 19,800 | | 1,227 |
Cerner Corp. (Æ)(Ñ) | | 8,600 | | 730 |
Charles River Laboratories International, Inc. (Æ)(Ñ) | | 18,000 | | 603 |
Cigna Corp. | | 8,000 | | 256 |
Coventry Health Care, Inc. (Æ) | | 2,900 | | 69 |
Covidien PLC | | 51,925 | | 2,492 |
Edwards Lifesciences Corp. (Æ) | | 4,900 | | 505 |
Express Scripts, Inc. Class A (Æ) | | 10,380 | | 1,039 |
Genzyme Corp. (Æ) | | 55,500 | | 2,955 |
Gilead Sciences, Inc. (Æ) | | 14,100 | | 559 |
Health Management Associates, Inc. Class A (Æ) | | 120,400 | | 1,122 |
Illumina, Inc. (Æ)(Ñ) | | 53,700 | | 2,248 |
Intuitive Surgical, Inc. (Æ)(Ñ) | | 12,370 | | 4,460 |
Johnson & Johnson | | 21,184 | | 1,362 |
McKesson Corp. | | 14,200 | | 920 |
Medco Health Solutions, Inc. (Æ) | | 6,800 | | 401 |
Medtronic, Inc. | | 5,200 | | 227 |
Merck & Co., Inc. | | 77,100 | | 2,702 |
Pfizer, Inc. | | 149,600 | | 2,501 |
Stryker Corp. (Ñ) | | 14,000 | | 804 |
Teva Pharmaceutical Industries,
Ltd. - ADR | | 13,100 | | 769 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Thermo Fisher Scientific, Inc. (Æ) | | 62,900 | | 3,477 |
United Therapeutics Corp. (Æ)(Ñ) | | 10,000 | | 569 |
UnitedHealth Group, Inc. | | 66,100 | | 2,004 |
Varian Medical Systems, Inc. (Æ)(Ñ) | | 35,300 | | 1,990 |
Watson Pharmaceuticals, Inc. Class B (Æ) | | 29,300 | | 1,255 |
WellPoint, Inc. (Æ) | | 11,200 | | 603 |
Zimmer Holdings, Inc. (Æ) | | 1,200 | | 73 |
| | | | |
| | | | 50,767 |
| | | | |
| | |
| Materials and Processing - 2.9% | | | | |
Agrium, Inc. | | 21,620 | | 1,349 |
Air Products & Chemicals, Inc. | | 6,900 | | 530 |
Cliffs Natural Resources, Inc. | | 4,200 | | 263 |
Dow Chemical Co. (The) | | 63,500 | | 1,958 |
EI du Pont de Nemours & Co. | | 20,900 | | 833 |
Freeport-McMoRan Copper & Gold, Inc. Class B | | 26,300 | | 1,986 |
Monsanto Co. | | 32,400 | | 2,043 |
PPG Industries, Inc. | | 9,800 | | 690 |
Praxair, Inc. | | 15,880 | | 1,330 |
United States Steel Corp. | | 5,400 | | 295 |
| | | | |
| | | | 11,277 |
| | | | |
| | |
| Producer Durables - 10.1% | | | | |
Automatic Data Processing, Inc. | | 2,400 | | 104 |
Boeing Co. (The) | | 5,900 | | 427 |
Caterpillar, Inc. | | 13,000 | | 885 |
Chicago Bridge & Iron Co. NV (Æ) | | 21,800 | | 511 |
Cooper Industries PLC | | 9,100 | | 447 |
CSX Corp. | | 50,130 | | 2,810 |
Cummins, Inc. | | 14,140 | | 1,021 |
Deere & Co. | | 20,600 | | 1,232 |
Eaton Corp. | | 16,700 | | 1,289 |
Emerson Electric Co. | | 20,500 | | 1,071 |
GATX Corp. (Ñ) | | 1,300 | | 42 |
General Dynamics Corp. | | 9,800 | | 748 |
General Electric Co. | | 213,900 | | 4,034 |
Genpact, Ltd. (Æ) | | 8,900 | | 150 |
Goodrich Corp. | | 5,100 | | 378 |
Honeywell International, Inc. | | 16,400 | | 778 |
Iron Mountain, Inc. (Ñ) | | 41,250 | | 1,037 |
ITT Corp. | | 29,820 | | 1,657 |
Lincoln Electric Holdings, Inc. | | 7,000 | | 420 |
Manpower, Inc. | | 16,000 | | 898 |
McDermott International, Inc. (Æ) | | 42,100 | | 1,154 |
Norfolk Southern Corp. | | 9,200 | | 546 |
Northrop Grumman Corp. | | 9,600 | | 651 |
PACCAR, Inc. (Ñ) | | 28,300 | | 1,317 |
Parker Hannifin Corp. (Ñ) | | 29,000 | | 2,006 |
Republic Services, Inc. Class A | | 38,504 | | 1,195 |
Rockwell Collins, Inc. (Ñ) | | 34,150 | | 2,220 |
Textron, Inc. (Ñ) | | 3,400 | | 78 |
Union Pacific Corp. | | 17,800 | | 1,347 |
United Parcel Service, Inc. Class B | | 23,290 | | 1,610 |
United Technologies Corp. | | 83,000 | | 6,221 |
WW Grainger, Inc. | | 10,500 | | 1,161 |
Xerox Corp. | | 6,415 | | 70 |
| | | | |
| | | | 39,515 |
| | | | |
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 97 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Technology - 20.3% | | | | |
American Tower Corp. Class A (Æ) | | 3,100 | | 127 |
Analog Devices, Inc. | | 4,300 | | 129 |
Apple, Inc. (Æ) | | 47,570 | | 12,422 |
ASML Holding NV (Ñ) | | 39,500 | | 1,290 |
Atmel Corp. (Æ) | | 29,300 | | 159 |
Broadcom Corp. Class A | | 102,100 | | 3,521 |
Cisco Systems, Inc. (Æ) | | 311,630 | | 8,389 |
Cognizant Technology Solutions Corp. Class A (Æ) | | 34,700 | | 1,776 |
Corning, Inc. | | 51,600 | | 993 |
Cree, Inc. (Æ)(Ñ) | | 8,000 | | 586 |
Crown Castle International Corp. (Æ) | | 6,100 | | 231 |
EMC Corp. (Æ) | | 59,000 | | 1,122 |
F5 Networks, Inc. (Æ)(Ñ) | | 15,130 | | 1,035 |
Flir Systems, Inc. (Æ)(Ñ) | | 36,300 | | 1,110 |
Google, Inc. Class A (Æ) | | 15,450 | | 8,118 |
Hewlett-Packard Co. | | 133,250 | | 6,925 |
International Business Machines Corp. | | 45,670 | | 5,891 |
Intersil Corp. Class A (Ñ) | | 17,200 | | 256 |
Intuit, Inc. (Æ) | | 6,100 | | 221 |
Juniper Networks, Inc. (Æ)(Ñ) | | 11,600 | | 330 |
Lam Research Corp. (Æ) | | 27,280 | | 1,106 |
LSI Corp. (Æ) | | 40,000 | | 241 |
Marvell Technology Group, Ltd. (Æ) | | 49,400 | | 1,020 |
Microsoft Corp. | | 132,700 | | 4,053 |
National Semiconductor Corp. | | 37,500 | | 554 |
Novellus Systems, Inc. (Æ)(Ñ) | | 15,600 | | 409 |
Oracle Corp. | | 126,200 | | 3,261 |
QUALCOMM, Inc. | | 145,440 | | 5,634 |
Rovi Corp. (Æ) | | 457 | | 18 |
Salesforce.com, Inc. (Æ)(Ñ) | | 55,740 | | 4,771 |
SanDisk Corp. (Æ) | | 17,000 | | 678 |
Sybase, Inc. (Æ)(Ñ) | | 11,600 | | 503 |
VMware, Inc. Class A (Æ)(Ñ) | | 31,200 | | 1,923 |
Xilinx, Inc. | | 7,800 | | 201 |
| | | | |
| | | | 79,003 |
| | | | |
| | |
| Utilities - 2.4% | | | | |
America Movil SAB de CV Series L | | 12,000 | | 618 |
American Water Works Co., Inc. | | 11,800 | | 257 |
AT&T, Inc. | | 48,556 | | 1,265 |
CMS Energy Corp. (Ñ) | | 8,400 | | 137 |
Dynegy, Inc. Class A (Æ) | | 3,332 | | 4 |
Edison International | | 15,100 | | 519 |
Entergy Corp. | | 3,900 | | 317 |
FPL Group, Inc. | | 18,900 | | 984 |
NV Energy, Inc. | | 24,300 | | 303 |
PG&E Corp. | | 10,400 | | 456 |
Portland General Electric Co. | | 5,100 | | 101 |
Public Service Enterprise Group, Inc. | | 22,500 | | 723 |
Qwest Communications International, Inc. (Ñ) | | 28,200 | | 147 |
SCANA Corp. | | 6,500 | | 257 |
Southern Co. | | 9,400 | | 325 |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
Sprint Nextel Corp. (Æ) | | 154,800 | | 658 | |
Verizon Communications, Inc. | | 47,838 | | 1,382 | |
Xcel Energy, Inc. | | 47,300 | | 1,029 | |
| | | | | |
| | | | 9,482 | |
| | | | | |
| | |
Total Common Stocks (cost $282,400) | | | | 375,694 | |
| | | | | |
| | |
| Short-Term Investments - 3.3% | | | | | |
Russell U.S. Cash Management Fund (£) | | 12,685,449 | | 12,685 | |
| | | | | |
| | |
Total Short-Term Investments (cost $12,685) | | | | 12,685 | |
| | | | | |
| | |
| Other Securities - 11.0% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 24,058,771 | | 24,059 | |
State Street Securities Lending Quality Trust (×) | | 18,653,928 | | 18,605 | |
| | | | | |
| | |
Total Other Securities (cost $42,713) | | | | 42,664 | |
| | | | | |
| | |
Total Investments - 110.7% (identified cost $337,798) | | | | 431,043 | |
| | |
Other Assets and Liabilities,
Net - (10.7%) | | | | (41,632 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 389,411 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 98 | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
S&P 500 E-Mini Index (CME) | | 162 | | USD | | 9,586 | | 06/10 | | 210 |
S&P 500 Index (CME) | | 14 | | USD | | 4,142 | | 06/10 | | 148 |
| | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 358 |
| | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 99 |
Russell Investment Company
Russell Tax-Managed U.S Large Cap Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 56,001 | | $ | — | | $ | — | | $ | 56,001 | | 14.4 | |
Consumer Staples | | | 22,990 | | | — | | | — | | | 22,990 | | 5.9 | |
Energy | | | 41,273 | | | — | | | — | | | 41,273 | | 10.6 | |
Financial Services | | | 65,386 | | | — | | | — | | | 65,386 | | 16.8 | |
Health Care | | | 50,767 | | | — | | | — | | | 50,767 | | 13.0 | |
Materials and Processing | | | 11,277 | | | — | | | — | | | 11,277 | | 2.9 | |
Producer Durables | | | 39,515 | | | — | | | — | | | 39,515 | | 10.1 | |
Technology | | | 79,003 | | | — | | | — | | | 79,003 | | 20.3 | |
Utilities | | | 9,482 | | | — | | | — | | | 9,482 | | 2.4 | |
Short-Term Investments | | | — | | | 12,685 | | | — | | | 12,685 | | 3.3 | |
Other Securities | | | — | | | 42,664 | | | — | | | 42,664 | | 11.0 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 375,694 | | | 55,349 | | | — | | | 431,043 | | 110.7 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (10.7 | ) |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | |
Futures Contracts | | | 358 | | | — | | | — | | | 358 | | 0.1 | |
| | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | | 358 | | | — | | | — | | | 358 | | | |
| | | | | | | | | | | | | | | |
| * | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 358 |
| | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 1,728 |
| | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 552 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 100 | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,253.60 | | $ | 1,013.74 |
Expenses Paid During Period* | | $ | 12.46 | | $ | 11.13 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.23% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,257.20 | | $ | 1,017.46 |
Expenses Paid During Period* | | $ | 8.28 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,259.20 | | $ | 1,018.70 |
Expenses Paid During Period* | | $ | 6.89 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 101 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 96.2% | | | | |
| Consumer Discretionary - 18.7% | | | | |
Aaron’s, Inc. | | 6,098 | | 138 |
Aeropostale, Inc. (Æ) | | 6,438 | | 187 |
American Public Education, Inc. (Æ)(Ñ) | | 2,720 | | 115 |
Amerigon, Inc. (Æ) | | 30,200 | | 296 |
AnnTaylor Stores Corp. (Æ) | | 27,820 | | 604 |
Arbitron, Inc. (Ñ) | | 7,116 | | 219 |
BJ’s Restaurants, Inc. (Æ)(Ñ) | | 23,800 | | 574 |
Bridgepoint Education, Inc. (Æ) | | 16,200 | | 417 |
Brinker International, Inc. | | 7,641 | | 142 |
Buffalo Wild Wings, Inc. (Æ)(Ñ) | | 12,500 | | 517 |
California Pizza Kitchen, Inc. (Æ) | | 7,865 | | 161 |
Callaway Golf Co. (Ñ) | | 50,291 | | 472 |
Capella Education Co. (Æ)(Ñ) | | 11,400 | | 1,033 |
CarMax, Inc. (Æ)(Ñ) | | 10,752 | | 264 |
Carter’s, Inc. (Æ) | | 18,639 | | 601 |
Cato Corp. (The) Class A (Ñ) | | 23,355 | | 555 |
Cheesecake Factory, Inc. (The) (Æ)(Ñ) | | 18,726 | | 509 |
Cherokee, Inc. (Ñ) | | 5,038 | | 103 |
Chico’s FAS, Inc. (Ñ) | | 13,239 | | 197 |
ChinaCast Education Corp. (Æ)(Ñ) | | 45,950 | | 309 |
Citi Trends, Inc. (Æ)(Ñ) | | 7,370 | | 247 |
Constant Contact, Inc. (Æ)(Ñ) | | 14,800 | | 378 |
Cooper Tire & Rubber Co. (Ñ) | | 18,350 | | 389 |
Core-Mark Holding Co., Inc. (Æ)(Ñ) | | 4,245 | | 130 |
Corinthian Colleges, Inc. (Æ)(Ñ) | | 31,889 | | 498 |
Dana Holding Corp. (Æ)(Ñ) | | 9,122 | | 122 |
Domino’s Pizza, Inc. (Æ) | | 25,571 | | 394 |
DR Horton, Inc. (Ñ) | | 12,139 | | 178 |
DreamWorks Animation SKG, Inc. Class A (Æ) | | 13,288 | | 527 |
Drugstore.Com, Inc. (Æ)(Ñ) | | 47,050 | | 172 |
Ethan Allen Interiors, Inc. | | 8,870 | | 179 |
Gannett Co., Inc. (Ñ) | | 7,954 | | 135 |
Gaylord Entertainment Co. (Æ)(Ñ) | | 4,826 | | 163 |
Gentex Corp. | | 11,113 | | 239 |
Goodyear Tire & Rubber Co. (The) (Æ) | | 10,415 | | 140 |
GSI Commerce, Inc. (Æ)(Ñ) | | 9,435 | | 257 |
Guess?, Inc. | | 6,910 | | 317 |
Hanesbrands, Inc. (Æ) | | 5,494 | | 156 |
Hertz Global Holdings, Inc. (Æ)(Ñ) | | 14,575 | | 211 |
hhgregg, Inc. (Æ)(Ñ) | | 12,490 | | 358 |
Hibbett Sports, Inc. (Æ)(Ñ) | | 22,600 | | 622 |
HSN, Inc. (Æ)(Ñ) | | 16,663 | | 502 |
Iconix Brand Group, Inc. (Æ)(Ñ) | | 7,469 | | 129 |
International Speedway Corp. Class A | | 1,430 | | 44 |
Interpublic Group of Cos., Inc. (Æ) | | 19,460 | | 173 |
ITT Educational Services, Inc. (Æ)(Ñ) | | 1,556 | | 157 |
Jack in the Box, Inc. (Æ)(Ñ) | | 18,795 | | 442 |
John Wiley & Sons, Inc. Class A (Ñ) | | 3,050 | | 129 |
K12, Inc. (Æ)(Ñ) | | 18,900 | | 447 |
Life Time Fitness, Inc. (Æ)(Ñ) | | 2,427 | | 89 |
LKQ Corp. (Æ) | | 48,900 | | 1,030 |
Lumber Liquidators Holdings, Inc. (Æ)(Ñ) | | 17,400 | | 530 |
Matthews International Corp. Class A (Ñ) | | 10,900 | | 382 |
MDC Holdings, Inc. (Ñ) | | 3,430 | | 131 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Meredith Corp. (Ñ) | | 17,425 | | 626 |
MWI Veterinary Supply, Inc. (Æ)(Ñ) | | 23,747 | | 996 |
Orient-Express Hotels, Ltd. Class A (Æ)(Ñ) | | 18,890 | | 258 |
Pool Corp. | | 6,753 | | 166 |
Pulte Group, Inc. (Æ)(Ñ) | | 38,635 | | 506 |
RadioShack Corp. (Ñ) | | 10,133 | | 218 |
Red Robin Gourmet Burgers, Inc. (Æ)(Ñ) | | 19,858 | | 485 |
Ross Stores, Inc. (Ñ) | | 3,272 | | 183 |
Rue21, Inc. (Æ)(Ñ) | | 8,300 | | 262 |
School Specialty, Inc. (Æ)(Ñ) | | 5,732 | | 134 |
Service Corp. International (Ñ) | | 20,340 | | 183 |
Shoe Carnival, Inc. (Æ)(Ñ) | | 7,055 | | 195 |
Shutterfly, Inc. (Æ) | | 17,800 | | 419 |
Signet Jewelers, Ltd. (Æ) | | 5,757 | | 184 |
Snap-On, Inc. | | 9,095 | | 438 |
Sonic Corp. (Æ)(Ñ) | | 10,434 | | 122 |
Tenneco, Inc. (Æ) | | 25,850 | | 666 |
Texas Roadhouse, Inc. Class A (Æ)(Ñ) | | 13,100 | | 194 |
Tiffany & Co. | | 6,108 | | 296 |
Titan International, Inc. (Ñ) | | 34,279 | | 425 |
TiVo, Inc. (Æ)(Ñ) | | 11,785 | | 207 |
Tractor Supply Co. (Ñ) | | 7,847 | | 527 |
True Religion Apparel, Inc. (Æ) | | 6,980 | | 218 |
Tupperware Brands Corp. | | 4,264 | | 218 |
Ulta Salon Cosmetics & Fragrance, Inc. (Æ)(Ñ) | | 11,900 | | 275 |
United Stationers, Inc. (Æ) | | 5,155 | | 316 |
Urban Outfitters, Inc. (Æ) | | 10,335 | | 388 |
ValueClick, Inc. (Æ) | | 8,852 | | 91 |
VistaPrint NV (Æ)(Ñ) | | 23,152 | | 1,194 |
WESCO International, Inc. (Æ)(Ñ) | | 11,665 | | 474 |
Weyco Group, Inc. (Ñ) | | 4,498 | | 110 |
WMS Industries, Inc. (Æ)(Ñ) | | 6,585 | | 329 |
Wyndham Worldwide Corp. | | 8,302 | | 223 |
| | | | |
| | | | 28,936 |
| | | | |
| | |
| Consumer Staples - 3.3% | | | | |
Casey’s General Stores, Inc. (Ñ) | | 3,986 | | 154 |
Constellation Brands, Inc. Class A (Æ)(Ñ) | | 7,438 | | 136 |
Del Monte Foods Co. | | 9,775 | | 146 |
Energizer Holdings, Inc. (Æ)(Ñ) | | 2,147 | | 131 |
Flowers Foods, Inc. (Ñ) | | 15,480 | | 408 |
Green Mountain Coffee Roasters, Inc. (Æ)(Ñ) | | 1,944 | | 141 |
Hain Celestial Group, Inc. (The) (Æ)(Ñ) | | 7,005 | | 139 |
Hansen Natural Corp. (Æ) | | 6,382 | | 281 |
JM Smucker Co. (The) | | 2,638 | | 161 |
Lance, Inc. | | 16,585 | | 384 |
Peet’s Coffee & Tea, Inc. (Æ)(Ñ) | | 18,100 | | 717 |
Ralcorp Holdings, Inc. (Æ) | | 2,598 | | 173 |
Ruddick Corp. (Ñ) | | 4,801 | | 170 |
TreeHouse Foods, Inc. (Æ)(Ñ) | | 31,340 | | 1,325 |
United Natural Foods, Inc. (Æ)(Ñ) | | 16,537 | | 508 |
Whole Foods Market, Inc. (Æ)(Ñ) | | 3,525 | | 138 |
| | | | |
| | | | 5,112 |
| | | | |
| | |
| 102 | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Energy - 4.7% | | | | |
Alpha Natural Resources, Inc. (Æ) | | 3,952 | | 186 |
Arena Resources, Inc. (Æ) | | 4,353 | | 161 |
Atwood Oceanics, Inc. (Æ) | | 6,520 | | 237 |
Cabot Oil & Gas Corp. | | 4,510 | | 163 |
CARBO Ceramics, Inc. (Ñ) | | 3,910 | | 286 |
Concho Resources, Inc. (Æ)(Ñ) | | 5,050 | | 287 |
Dril-Quip, Inc. (Æ)(Ñ) | | 10,400 | | 602 |
EXCO Resources, Inc. (Ñ) | | 12,415 | | 230 |
Forest Oil Corp. (Æ) | | 24,951 | | 731 |
FX Energy, Inc. (Æ)(Ñ) | | 23,193 | | 100 |
Gran Tierra Energy, Inc. (Æ)(Ñ) | | 27,937 | | 169 |
Hornbeck Offshore Services, Inc. (Æ)(Ñ) | | 4,292 | | 105 |
ION Geophysical Corp. (Æ)(Ñ) | | 60,515 | | 364 |
Lufkin Industries, Inc. | | 1,370 | | 117 |
North American Energy Partners, Inc. (Æ)(Ñ) | | 33,648 | | 380 |
Oceaneering International, Inc. (Æ) | | 2,697 | | 177 |
Oil States International, Inc. (Æ) | | 4,736 | | 229 |
Parker Drilling Co. (Æ)(Ñ) | | 24,710 | | 137 |
Rosetta Resources, Inc. (Æ) | | 9,167 | | 228 |
Superior Energy Services, Inc. (Æ) | | 14,196 | | 384 |
Superior Well Services, Inc. (Æ)(Ñ) | | 15,280 | | 222 |
Tesoro Corp. (Ñ) | | 8,604 | | 113 |
USEC, Inc. (Æ) | | 18,759 | | 113 |
Walter Energy, Inc. Class A (Ñ) | | 5,969 | | 482 |
Whiting Petroleum Corp. (Æ)(Ñ) | | 10,985 | | 992 |
Willbros Group, Inc. (Æ)(Ñ) | | 6,642 | | 83 |
| | | | |
| | | | 7,278 |
| | | | |
| | |
| Financial Services - 17.1% | | | | |
Advent Software, Inc. (Æ) | | 17,400 | | 786 |
American Campus Communities, Inc. (ö) | | 11,785 | | 332 |
American Equity Investment Life Holding Co. | | 50,210 | | 528 |
AmeriCredit Corp. (Æ) | | 8,888 | | 213 |
Apollo Investment Corp. (Ñ) | | 14,259 | | 173 |
Ares Capital Corp. (Ñ) | | 12,192 | | 193 |
Argo Group International Holdings, Ltd. | | 16,419 | | 542 |
Astoria Financial Corp. | | 27,423 | | 443 |
Axis Capital Holdings, Ltd. | | 6,444 | | 201 |
Banco Latinoamericano de Comercio Exterior SA Class E | | 6,718 | | 95 |
Bank of Hawaii Corp. | | 7,847 | | 415 |
Bank of the Ozarks, Inc. | | 12,355 | | 475 |
BioMed Realty Trust, Inc. (ö)(Ñ) | | 12,185 | | 226 |
Broadridge Financial Solutions, Inc. | | 7,021 | | 167 |
Camden Property Trust (ö) | | 3,864 | | 187 |
Cash America International, Inc. (Ñ) | | 4,181 | | 155 |
CB Richard Ellis Group, Inc. Class A (Æ)(Ñ) | | 23,778 | | 412 |
CBL & Associates Properties, Inc. (ö) | | 11,050 | | 161 |
Cedar Shopping Centers, Inc. (ö)(Ñ) | | 40,960 | | 326 |
Community Bank System, Inc. (Ñ) | | 9,887 | | 244 |
Cybersource Corp. (Æ) | | 20,360 | | 523 |
Delphi Financial Group, Inc. Class A (Ñ) | | 5,681 | | 156 |
DuPont Fabros Technology, Inc. (ö) | | 17,125 | | 380 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
EastGroup Properties, Inc. (ö)(Ñ) | | 3,592 | | 147 |
Employers Holdings, Inc. | | 9,125 | | 150 |
Equifax, Inc. (Ñ) | | 5,191 | | 174 |
Euronet Worldwide, Inc. (Æ)(Ñ) | | 5,545 | | 88 |
Extra Space Storage, Inc. (ö) | | 14,309 | | 215 |
Ezcorp, Inc. Class A (Æ) | | 24,700 | | 512 |
Fair Isaac Corp. (Ñ) | | 19,233 | | 405 |
Federal Realty Investment Trust (ö)(Ñ) | | 3,132 | | 242 |
Fidelity National Financial, Inc. Class A | | 10,266 | | 156 |
Fidelity National Information Services, Inc. | | 4,083 | | 107 |
First Commonwealth Financial Corp. (Ñ) | | 17,759 | | 116 |
First Horizon National Corp. (Æ)(��) | | 12,624 | | 179 |
First Industrial Realty Trust, Inc. (Æ)(ö)(Ñ) | | 28,818 | | 230 |
First Midwest Bancorp, Inc. (Ñ) | | 41,527 | | 631 |
Franklin Street Properties Corp. (ö)(Ñ) | | 10,831 | | 160 |
Genworth Financial, Inc. Class A (Æ) | | 15,238 | | 252 |
Glacier Bancorp, Inc. (Ñ) | | 35,247 | | 652 |
Greenhill & Co., Inc. | | 3,214 | | 283 |
Hanover Insurance Group, Inc. (The) (Ñ) | | 9,274 | | 418 |
Harleysville Group, Inc. (Ñ) | | 5,355 | | 172 |
Health Care REIT, Inc. (ö) | | 4,831 | | 217 |
Home Properties, Inc. (ö)(Ñ) | | 7,851 | | 390 |
Huntington Bancshares, Inc. (Ñ) | | 29,550 | | 200 |
Iberiabank Corp. (Ñ) | | 3,104 | | 191 |
Inland Real Estate Corp. (ö)(Ñ) | | 16,183 | | 152 |
Investors Real Estate Trust (ö)(Ñ) | | 11,046 | | 96 |
Jack Henry & Associates, Inc. | | 9,750 | | 249 |
Jefferies Group, Inc. (Ñ) | | 6,369 | | 173 |
Kayne Anderson Energy Development Co. (Ñ) | | 5,082 | | 82 |
KeyCorp | | 27,818 | | 251 |
Lazard, Ltd. Class A | | 4,945 | | 191 |
Markel Corp. (Æ)(Ñ) | | 462 | | 177 |
Marshall & Ilsley Corp. | | 19,065 | | 174 |
MF Global Holdings, Ltd. (Æ)(Ñ) | | 25,220 | | 233 |
MGIC Investment Corp. (Æ)(Ñ) | | 33,271 | | 347 |
Mid-America Apartment Communities, Inc. (ö)(Ñ) | | 18,716 | | 1,034 |
MSCI, Inc. Class A (Æ) | | 9,935 | | 344 |
National Penn Bancshares, Inc. (Ñ) | | 17,730 | | 130 |
Nationwide Health Properties, Inc. (ö) | | 5,778 | | 202 |
Navigators Group, Inc. (Æ) | | 2,522 | | 101 |
NewAlliance Bancshares, Inc. (Ñ) | | 13,152 | | 171 |
Och-Ziff Capital Management Group LLC (Ñ) | | 21,030 | | 369 |
Old National Bancorp (Ñ) | | 35,200 | | 472 |
PacWest Bancorp (Ñ) | | 7,731 | | 186 |
PartnerRe, Ltd. - ADR | | 2,400 | | 186 |
Piper Jaffray Cos. (Æ)(Ñ) | | 2,717 | | 107 |
PMI Group, Inc. (The) (Æ)(Ñ) | | 58,468 | | 305 |
Post Properties, Inc. (ö)(Ñ) | | 7,537 | | 194 |
PrivateBancorp, Inc. Class A (Ñ) | | 19,440 | | 278 |
Prosperity Bancshares, Inc. (Ñ) | | 9,809 | | 385 |
Raymond James Financial, Inc. (Ñ) | | 4,948 | | 152 |
Reinsurance Group of America, Inc. Class A | | 2,940 | | 152 |
RLI Corp. (Ñ) | | 6,745 | | 391 |
Selective Insurance Group, Inc. (Ñ) | | 29,468 | | 492 |
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 103 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Signature Bank NY (Æ)(Ñ) | | 22,888 | | 924 |
SL Green Realty Corp. (ö)(Ñ) | | 4,181 | | 260 |
State Auto Financial Corp. (Ñ) | | 6,466 | | 116 |
Sterling Bancshares, Inc. (Ñ) | | 15,392 | | 91 |
Sun Communities, Inc. (ö)(Ñ) | | 22,409 | | 648 |
Synovus Financial Corp. (Ñ) | | 11,719 | | 35 |
Tanger Factory Outlet Centers (ö)(Ñ) | | 4,001 | | 166 |
Umpqua Holdings Corp. (Ñ) | | 13,510 | | 202 |
United Bankshares, Inc. (Ñ) | | 11,820 | | 343 |
United Fire & Casualty Co. (Ñ) | | 8,085 | | 185 |
Valley National Bancorp (Ñ) | | 37,933 | | 616 |
Ventas, Inc. (ö)(Ñ) | | 3,726 | | 176 |
Waddell & Reed Financial, Inc. Class A | | 6,000 | | 223 |
Washington Real Estate Investment Trust (ö)(Ñ) | | 5,714 | | 180 |
Westamerica Bancorporation (Ñ) | | 9,353 | | 550 |
Westwood Holdings Group, Inc. (Ñ) | | 2,599 | | 100 |
WSFS Financial Corp. (Ñ) | | 3,871 | | 163 |
| | | | |
| | | | 26,374 |
| | | | |
| | |
| Health Care - 13.2% | | | | |
Abaxis, Inc. (Æ) | | 14,200 | | 368 |
Alexion Pharmaceuticals, Inc. (Æ) | | 13,468 | | 739 |
Align Technology, Inc. (Æ) | | 25,562 | | 434 |
American Medical Systems Holdings, Inc. (Æ)(Ñ) | | 8,058 | | 144 |
AMERIGROUP Corp. Class A (Æ)(Ñ) | | 20,670 | | 749 |
Amsurg Corp. Class A (Æ)(Ñ) | | 5,498 | | 114 |
athenahealth, Inc. (Æ)(Ñ) | | 7,970 | | 231 |
Auxilium Pharmaceuticals, Inc. (Æ)(Ñ) | | 3,796 | | 135 |
Bio-Reference Labs, Inc. (Æ)(Ñ) | | 40,000 | | 936 |
Catalyst Health Solutions, Inc. (Æ) | | 19,900 | | 842 |
Celldex Therapeutics, Inc. (Æ)(Ñ) | | 19,469 | | 159 |
Charles River Laboratories International, Inc. (Æ) | | 5,001 | | 167 |
Chemed Corp. (Ñ) | | 13,713 | | 754 |
Clarient, Inc. (Æ)(Ñ) | | 100,400 | | 303 |
Conceptus, Inc. (Æ)(Ñ) | | 8,300 | | 157 |
Cooper Cos., Inc. (The) (Ñ) | | 3,994 | | 155 |
Covance, Inc. (Æ)(Ñ) | | 3,134 | | 179 |
Dendreon Corp. (Æ)(Ñ) | | 5,295 | | 287 |
Dentsply International, Inc. (Ñ) | | 4,404 | | 161 |
Eclipsys Corp. (Æ)(Ñ) | | 5,794 | | 120 |
Edwards Lifesciences Corp. (Æ) | | 2,450 | | 253 |
Emergency Medical Services Corp. Class A (Æ) | | 2,280 | | 121 |
Endo Pharmaceuticals Holdings, Inc. (Æ) | | 7,002 | | 153 |
Gentiva Health Services, Inc. (Æ)(Ñ) | | 15,379 | | 441 |
Greatbatch, Inc. (Æ)(Ñ) | | 5,955 | | 133 |
Haemonetics Corp. (Æ)(Ñ) | | 8,097 | | 468 |
Healthsouth Corp. (Æ)(Ñ) | | 21,926 | | 449 |
Henry Schein, Inc. (Æ)(Ñ) | | 2,886 | | 175 |
HMS Holdings Corp. (Æ)(Ñ) | | 17,400 | | 931 |
Hologic, Inc. (Æ) | | 9,896 | | 177 |
Human Genome Sciences, Inc. (Æ)(Ñ) | | 16,720 | | 463 |
Inverness Medical Innovations, Inc. (Æ)(Ñ) | | 3,875 | | 154 |
IPC The Hospitalist Co., Inc. (Æ)(Ñ) | | 22,100 | | 686 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Kindred Healthcare, Inc. (Æ)(Ñ) | | 13,780 | | 246 |
LifePoint Hospitals, Inc. (Æ) | | 7,908 | | 302 |
Magellan Health Services, Inc. (Æ) | | 13,603 | | 574 |
MannKind Corp. (Æ)(Ñ) | | 18,643 | | 130 |
Matrixx Initiatives, Inc. (Æ)(Ñ) | | 9,504 | | 49 |
Medical Action Industries, Inc. (Æ)(Ñ) | | 21,987 | | 261 |
Mednax, Inc. (Æ) | | 2,867 | | 158 |
Merit Medical Systems, Inc. (Æ)(Ñ) | | 38,215 | | 618 |
Myriad Pharmaceuticals, Inc. (Æ)(Ñ) | | 17,226 | | 85 |
Neogen Corp. (Æ)(Ñ) | | 24,214 | | 637 |
NuVasive, Inc. (Æ)(Ñ) | | 3,122 | | 130 |
Omnicell, Inc. (Æ)(Ñ) | | 9,130 | | 122 |
Orthofix International NV (Æ)(Ñ) | | 3,868 | | 132 |
Parexel International Corp. (Æ) | | 13,580 | | 320 |
PDL BioPharma, Inc. (Ñ) | | 15,776 | | 92 |
Pharmasset, Inc. (Æ)(Ñ) | | 5,750 | | 186 |
PharMerica Corp. (Æ) | | 8,840 | | 171 |
Phase Forward, Inc. (Æ) | | 32,800 | | 551 |
PSS World Medical, Inc. (Æ)(Ñ) | | 26,351 | | 617 |
Quality Systems, Inc. (Ñ) | | 1,813 | | 116 |
RehabCare Group, Inc. (Æ) | | 13,905 | | 397 |
Seattle Genetics, Inc. (Æ)(Ñ) | | 12,169 | | 153 |
Sunrise Senior Living, Inc. (Æ) | | 25,012 | | 139 |
SXC Health Solutions Corp. (Æ) | | 8,300 | | 578 |
Techne Corp. | | 2,619 | | 173 |
Tenet Healthcare Corp. (Æ) | | 19,776 | | 124 |
United Therapeutics Corp. (Æ)(Ñ) | | 5,825 | | 331 |
Universal Health Services, Inc. Class B | | 5,570 | | 207 |
US Physical Therapy, Inc. (Æ) | | 25,211 | | 442 |
VCA Antech, Inc. (Æ)(Ñ) | | 6,630 | | 189 |
Viropharma, Inc. (Æ)(Ñ) | | 10,814 | | 138 |
Watson Pharmaceuticals, Inc. Class B (Æ) | | 4,436 | | 190 |
Zoll Medical Corp. (Æ)(Ñ) | | 6,172 | | 189 |
| | | | |
| | | | 20,485 |
| | | | |
| | |
| Materials and Processing - 6.1% | | | | |
AAON, Inc. | | 5,804 | | 140 |
Airgas, Inc. | | 3,415 | | 217 |
AK Steel Holding Corp. | | 5,349 | | 90 |
Arch Chemicals, Inc. (Ñ) | | 16,589 | | 564 |
Ashland, Inc. | | 3,215 | | 191 |
Ball Corp. | | 3,878 | | 206 |
Belden, Inc. | | 5,324 | | 146 |
Buckeye Technologies, Inc. (Æ) | | 24,050 | | 340 |
Carpenter Technology Corp. | | 13,588 | | 534 |
CF Industries Holdings, Inc. | | 1,341 | | 112 |
Coeur d’Alene Mines Corp. (Æ)(Ñ) | | 6,346 | | 114 |
Commercial Metals Co. (Ñ) | | 10,069 | | 150 |
Compass Minerals International, Inc. (Ñ) | | 8,597 | | 647 |
Crown Holdings, Inc. (Æ) | | 5,924 | | 154 |
Deltic Timber Corp. (Ñ) | | 4,050 | | 213 |
Eastman Chemical Co. (Ñ) | | 3,259 | | 218 |
Gibraltar Industries, Inc. (Æ) | | 18,917 | | 284 |
HB Fuller Co. | | 6,494 | | 152 |
Horsehead Holding Corp. (Æ)(Ñ) | | 12,563 | | 149 |
Interline Brands, Inc. (Æ)(Ñ) | | 20,189 | | 420 |
Kaydon Corp. | | 9,628 | | 401 |
| | |
| 104 | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Lennox International, Inc. | | 4,420 | | 200 |
Martin Marietta Materials, Inc. (Ñ) | | 2,202 | | 211 |
Minerals Technologies, Inc. | | 2,691 | | 155 |
Owens Corning (Æ) | | 6,810 | | 237 |
Pactiv Corp. (Æ) | | 6,078 | | 154 |
Quanex Building Products Corp. (Ñ) | | 8,096 | | 154 |
Rogers Corp. (Æ)(Ñ) | | 4,066 | | 136 |
RPM International, Inc. | | 9,551 | | 211 |
Silgan Holdings, Inc. (Ñ) | | 7,215 | | 435 |
Solutia, Inc. (Æ) | | 18,400 | | 324 |
Sonoco Products Co. (Ñ) | | 6,294 | | 209 |
Spartech Corp. (Æ)(Ñ) | | 36,352 | | 518 |
Steel Dynamics, Inc. | | 11,150 | | 175 |
Temple-Inland, Inc. | | 3,846 | | 90 |
Texas Industries, Inc. (Ñ) | | 6,300 | | 238 |
Universal Forest Products, Inc. (Ñ) | | 3,533 | | 149 |
Wausau Paper Corp. (Æ)(Ñ) | | 17,235 | | 153 |
WR Grace & Co. (Æ) | | 7,269 | | 210 |
| | | | |
| | | | 9,401 |
| | | | |
| | |
| Producer Durables - 13.0% | | | | |
Advanced Energy Industries, Inc. (Æ) | | 23,869 | | 351 |
Advisory Board Co. (The) (Æ)(Ñ) | | 3,948 | | 130 |
Aecom Technology Corp. (Æ) | | 4,617 | | 139 |
Alexander & Baldwin, Inc. | | 11,961 | | 426 |
American Superconductor Corp. (Æ) | | 4,047 | | 118 |
Ametek, Inc. | | 4,483 | | 194 |
AMR Corp. (Æ) | | 25,228 | | 186 |
Applied Industrial Technologies, Inc. (Ñ) | | 6,221 | | 192 |
Barnes Group, Inc. | | 29,861 | | 621 |
Bristow Group, Inc. (Æ)(Ñ) | | 16,065 | | 622 |
Bucyrus International, Inc. Class A (Ñ) | | 13,637 | | 859 |
Carlisle Cos., Inc. | | 5,356 | | 202 |
CDI Corp. (Ñ) | | 7,527 | | 131 |
Con-way, Inc. | | 4,608 | | 179 |
Consolidated Graphics, Inc. (Æ)(Ñ) | | 12,800 | | 536 |
Corrections Corp. of America (Æ) | | 6,957 | | 144 |
CoStar Group, Inc. (Æ)(Ñ) | | 16,636 | | 731 |
Donaldson Co., Inc. (Ñ) | | 4,620 | | 214 |
Eagle Bulk Shipping, Inc. (Æ)(Ñ) | | 63,931 | | 370 |
Electronics for Imaging, Inc. (Æ) | | 18,670 | | 240 |
EnergySolutions, Inc. | | 28,210 | | 205 |
EnPro Industries, Inc. (Æ)(Ñ) | | 11,743 | | 371 |
ESCO Technologies, Inc. | | 3,393 | | 105 |
ExlService Holdings, Inc. (Æ) | | 8,937 | | 142 |
Federal Signal Corp. (Ñ) | | 12,796 | | 103 |
Franklin Electric Co., Inc. (Ñ) | | 9,980 | | 349 |
Gardner Denver, Inc. | | 9,280 | | 467 |
GATX Corp. (Ñ) | | 5,200 | | 170 |
General Maritime Corp. (Ñ) | | 54,377 | | 441 |
Genesee & Wyoming, Inc. Class A (Æ)(Ñ) | | 11,331 | | 443 |
GrafTech International, Ltd. (Æ)(Ñ) | | 10,240 | | 173 |
HEICO Corp. (Ñ) | | 3,966 | | 171 |
HNI Corp. (Ñ) | | 6,527 | | 203 |
IDEX Corp. | | 10,596 | | 356 |
Joy Global, Inc. | | 5,100 | | 290 |
Kadant, Inc. (Æ) | | 10,995 | | 220 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Kansas City Southern (Æ)(Ñ) | | 17,147 | | 695 |
KBR, Inc. | | 7,435 | | 164 |
Kennametal, Inc. | | 12,305 | | 404 |
Knight Transportation, Inc. (Ñ) | | 26,200 | | 558 |
Knightsbridge Tankers, Ltd. | | 2,589 | | 49 |
Knoll, Inc. | | 23,750 | | 332 |
Lexmark International, Inc. Class A (Æ)(Ñ) | | 5,588 | | 207 |
Littelfuse, Inc. (Æ)(Ñ) | | 4,790 | | 202 |
Manitowoc Co., Inc. (The) | | 8,480 | | 119 |
Manpower, Inc. | | 4,800 | | 269 |
MAXIMUS, Inc. | | 3,055 | | 189 |
Modine Manufacturing Co. (Æ)(Ñ) | | 29,193 | | 409 |
Navigant Consulting, Inc. (Æ) | | 8,710 | | 112 |
Navistar International Corp. (Æ) | | 7,879 | | 381 |
Nordson Corp. (Ñ) | | 7,388 | | 531 |
Old Dominion Freight Line, Inc. (Æ)(Ñ) | | 11,520 | | 413 |
Orbital Sciences Corp. (Æ)(Ñ) | | 6,866 | | 126 |
Oshkosh Corp. (Æ)(Ñ) | | 3,139 | | 121 |
Overseas Shipholding Group, Inc. (Ñ) | | 2,935 | | 147 |
Pentair, Inc. | | 5,889 | | 213 |
Robbins & Myers, Inc. | | 14,833 | | 384 |
Robert Half International, Inc. (Ñ) | | 5,985 | | 164 |
Roper Industries, Inc. (Ñ) | | 3,403 | | 208 |
Shaw Group, Inc. (The) (Æ) | | 3,731 | | 143 |
Skywest, Inc. | | 8,221 | | 123 |
Taser International, Inc. (Æ)(Ñ) | | 18,117 | | 86 |
Teekay Tankers, Ltd. Class A | | 11,373 | | 145 |
Tennant Co. (Ñ) | | 7,315 | | 252 |
Tetra Tech, Inc. (Æ) | | 17,167 | | 418 |
Toro Co. (The) (Ñ) | | 13,067 | | 744 |
Tutor Perini Corp. (Æ)(Ñ) | | 15,008 | | 364 |
Wabtec Corp. (Ñ) | | 9,734 | | 463 |
World Fuel Services Corp. (Ñ) | | 4,770 | | 136 |
| | | | |
| | | | 20,065 |
| | | | |
| | |
| Technology - 16.3% | | | | |
Advanced Analogic Technologies, Inc. (Æ)(Ñ) | | 27,544 | | 105 |
Advanced Micro Devices, Inc. (Æ) | | 25,851 | | 234 |
Akamai Technologies, Inc. (Æ)(Ñ) | | 7,663 | | 298 |
American Science & Engineering, Inc. | | 4,103 | | 308 |
Anixter International, Inc. (Æ) | | 7,820 | | 410 |
Ansys, Inc. (Æ) | | 23,707 | | 1,067 |
Applied Micro Circuits Corp. (Æ)(Ñ) | | 13,404 | | 151 |
Archipelago Learning, Inc. (Æ) | | 21,241 | | 308 |
Ariba, Inc. (Æ)(Ñ) | | 11,688 | | 167 |
Aruba Networks, Inc. (Æ) | | 17,120 | | 215 |
Atheros Communications, Inc. (Æ)(Ñ) | | 14,360 | | 558 |
Atmel Corp. (Æ) | | 38,505 | | 209 |
Aviat Networks, Inc. (Æ)(Ñ) | | 13,238 | | 86 |
Avnet, Inc. (Æ) | | 5,180 | | 166 |
Benchmark Electronics, Inc. (Æ) | | 26,697 | | 578 |
Black Box Corp. | | 4,064 | | 127 |
Blackboard, Inc. (Æ) | | 20,600 | | 876 |
Blue Coat Systems, Inc. (Æ)(Ñ) | | 9,095 | | 296 |
Bottomline Technologies, Inc. (Æ) | | 16,488 | | 287 |
Brocade Communications Systems, Inc. (Æ) | | 18,307 | | 119 |
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 105 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
CACI International, Inc. Class A (Æ)(Ñ) | | 12,816 | | 608 |
City Telecom HK, Ltd. - ADR | | 13,810 | | 205 |
CommScope, Inc. (Æ)(Ñ) | | 4,042 | | 132 |
Concur Technologies, Inc. (Æ)(Ñ) | | 8,700 | | 365 |
DealerTrack Holdings, Inc. (Æ)(Ñ) | | 21,800 | | 332 |
Diodes, Inc. (Æ)(Ñ) | | 24,112 | | 518 |
Double-Take Software, Inc. (Æ)(Ñ) | | 11,869 | | 128 |
Earthlink, Inc. (Ñ) | | 15,729 | | 142 |
Ebix, Inc. (Æ)(Ñ) | | 30,200 | | 491 |
Emulex Corp. (Æ)(Ñ) | | 38,385 | | 451 |
Entegris, Inc. (Æ)(Ñ) | | 74,040 | | 458 |
Equinix, Inc. (Æ)(Ñ) | | 2,000 | | 201 |
F5 Networks, Inc. (Æ)(Ñ) | | 17,225 | | 1,179 |
Fairchild Semiconductor International, Inc. Class A (Æ) | | 60,878 | | 683 |
Finisar Corp. (Æ)(Ñ) | | 20,880 | | 312 |
GTSI Corp. (Æ) | | 22,416 | | 143 |
Harmonic, Inc. (Æ)(Ñ) | | 40,330 | | 276 |
Hittite Microwave Corp. (Æ)(Ñ) | | 13,400 | | 687 |
Interactive Intelligence, Inc. (Æ)(Ñ) | | 21,390 | | 423 |
IPG Photonics Corp. (Æ)(Ñ) | | 7,740 | | 135 |
Jabil Circuit, Inc. | | 12,332 | | 189 |
LivePerson, Inc. (Æ)(Ñ) | | 72,935 | | 602 |
LogMeIn, Inc. (Æ) | | 15,900 | | 372 |
LSI Corp. (Æ) | | 36,536 | | 220 |
Mantech International Corp. Class A (Æ)(Ñ) | | 9,871 | | 444 |
Mentor Graphics Corp. (Æ)(Ñ) | | 43,405 | | 390 |
MICROS Systems, Inc. (Æ) | | 4,815 | | 179 |
Netlogic Microsystems, Inc. (Æ)(Ñ) | | 29,180 | | 910 |
Newport Corp. (Æ)(Ñ) | | 10,062 | | 119 |
NIC, Inc. (Ñ) | | 62,490 | | 441 |
Nuance Communications, Inc. (Æ)(Ñ) | | 10,955 | | 200 |
NVE Corp. (Æ)(Ñ) | | 1,714 | | 83 |
ON Semiconductor Corp. (Æ)(Ñ) | | 24,910 | | 198 |
Parametric Technology Corp. (Æ)(Ñ) | | 19,860 | | 369 |
Plexus Corp. (Æ)(Ñ) | | 24,920 | | 923 |
Power Integrations, Inc. (Ñ) | | 14,200 | | 546 |
Progress Software Corp. (Æ)(Ñ) | | 22,070 | | 712 |
Red Hat, Inc. (Æ) | | 7,105 | | 212 |
RF Micro Devices, Inc. (Æ)(Ñ) | | 23,836 | | 134 |
Riverbed Technology, Inc. (Æ)(Ñ) | | 15,550 | | 482 |
Rovi Corp. (Æ) | | 67 | | 3 |
SAVVIS, Inc. (Æ)(Ñ) | | 8,754 | | 154 |
SolarWinds, Inc. (Æ)(Ñ) | | 21,600 | | 401 |
Sourcefire, Inc. (Æ)(Ñ) | | 9,090 | | 203 |
Stanley, Inc. (Æ)(Ñ) | | 15,500 | | 490 |
SuccessFactors, Inc. (Æ) | | 10,970 | | 230 |
Syntel, Inc. (Ñ) | | 2,747 | | 99 |
Tellabs, Inc. | | 27,696 | | 251 |
TIBCO Software, Inc. (Æ) | | 18,225 | | 208 |
TriQuint Semiconductor, Inc. (Æ) | | 23,726 | | 179 |
Tyler Technologies, Inc. (Æ)(Ñ) | | 18,600 | | 317 |
Unisys Corp. (Æ)(Ñ) | | 3,960 | | 111 |
United Online, Inc. | | 13,767 | | 110 |
Varian Semiconductor Equipment Associates, Inc. (Æ) | | 5,566 | | 183 |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
Volterra Semiconductor Corp. (Æ)(Ñ) | | 7,420 | | 178 | |
| | | | | |
| | | | 25,276 | |
| | | | | |
| | |
| Utilities - 3.8% | | | | | |
Alaska Communications Systems Group, Inc. (Ñ) | | 49,861 | | 427 | |
Atlantic Tele-Network, Inc. | | 2,106 | | 116 | |
Avista Corp. (Ñ) | | 14,530 | | 314 | |
Black Hills Corp. | | 10,515 | | 346 | |
CenterPoint Energy, Inc. | | 13,848 | | 199 | |
Central Vermont Public Service Corp. (Ñ) | | 6,280 | | 137 | |
CenturyTel, Inc. | | 3,910 | | 133 | |
Clearwire Corp. (Æ)(Ñ) | | 7,740 | | 60 | |
Cleco Corp. | | 20,168 | | 553 | |
Connecticut Water Service, Inc. (Ñ) | | 4,800 | | 114 | |
El Paso Electric Co. (Æ)(Ñ) | | 23,887 | | 508 | |
Empire District Electric Co. (The) (Ñ) | | 7,038 | | 137 | |
Great Plains Energy, Inc. (Ñ) | | 8,785 | | 170 | |
ITC Holdings Corp. | | 3,085 | | 172 | |
j2 Global Communications, Inc. (Æ) | | 11,635 | | 280 | |
Laclede Group, Inc. (The) | | 4,089 | | 139 | |
National Fuel Gas Co. (Ñ) | | 3,916 | | 204 | |
New Jersey Resources Corp. (Ñ) | | 3,497 | | 132 | |
Northeast Utilities | | 7,210 | | 200 | |
Northwest Natural Gas Co. (Ñ) | | 2,782 | | 132 | |
NorthWestern Corp. (Ñ) | | 19,915 | | 602 | |
NSTAR | | 4,936 | | 181 | |
Otter Tail Corp. (Ñ) | | 4,867 | | 108 | |
RRI Energy, Inc. (Æ)(Ñ) | | 25,025 | | 102 | |
Southwest Gas Corp. | | 4,728 | | 147 | |
Telephone & Data Systems, Inc. (Ñ) | | 2,257 | | 78 | |
Time Warner Telecom, Inc. Class A (Æ)(Ñ) | | 10,467 | | 186 | |
| | | | | |
| | | | 5,877 | |
| | | | | |
| | |
Total Common Stocks
(cost $119,824) | | | | 148,804 | |
| | | | | |
| | |
| Short-Term Investments - 3.6% | | | | | |
Russell U.S. Cash Management Fund (£) | | 5,633,035 | | 5,633 | |
| | | | | |
| | |
Total Short-Term Investments
(cost $5,633) | | | | 5,633 | |
| | | | | |
| | |
| Other Securities - 43.9% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 38,299,047 | | 38,299 | |
State Street Securities Lending Quality Trust (×) | | 29,695,102 | | 29,617 | |
| | | | | |
| | |
Total Other Securities
(cost $67,994) | | | | 67,916 | |
| | | | | |
| | |
Total Investments - 143.7%
(identified cost $193,451) | | | | 222,353 | |
| | |
Other Assets and Liabilities,
Net - (43.7%) | | | | (67,652 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 154,701 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 106 | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
Russell 2000 Mini Index (CME) | | 82 | | USD | | 5,867 | | 06/10 | | 336 |
| | | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 336 |
| | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 107 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 28,936 | | $ | — | | $ | — | | $ | 28,936 | | 18.7 | |
Consumer Staples | | | 5,112 | | | — | | | — | | | 5,112 | | 3.3 | |
Energy | | | 7,278 | | | — | | | — | | | 7,278 | | 4.7 | |
Financial Services | | | 26,374 | | | — | | | — | | | 26,374 | | 17.1 | |
Health Care | | | 20,485 | | | — | | | — | | | 20,485 | | 13.2 | |
Materials and Processing | | | 9,401 | | | — | | | — | | | 9,401 | | 6.1 | |
Producer Durables | | | 20,065 | | | — | | | — | | | 20,065 | | 13.0 | |
Technology | | | 25,276 | | | — | | | — | | | 25,276 | | 16.3 | |
Utilities | | | 5,877 | | | — | | | — | | | 5,877 | | 3.8 | |
Short-Term Investments | | | — | | | 5,633 | | | — | | | 5,633 | | 3.6 | |
Other Securities | | | — | | | 67,916 | | | — | | | 67,916 | | 43.9 | |
| | | | | | | | | | | | | | | |
Total Investments | | | 148,804 | | | 73,549 | | | — | | | 222,353 | | 143.7 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | (43.7 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | |
Futures Contracts | | | 336 | | | — | | | — | | | 336 | | 0.2 | |
| | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | | 336 | | | — | | | — | | | 336 | | | |
| | | | | | | | | | | | | | | |
| * | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Assets and Liabilities - Assets | | | |
Daily variation margin on futures contracts* | | $ | 336 |
| | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts |
| | | |
| Location: Statement of Operations - Net realized gain (loss) | | | |
Futures contracts | | $ | 1,154 |
| | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | |
Futures contracts | | $ | 675 |
| | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 108 | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Strategic Bond Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,066.40 | | $ | 1,020.47 |
Expenses Paid During Period* | | $ | 4.87 | | $ | 4.79 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.95% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,062.30 | | $ | 1,016.36 |
Expenses Paid During Period* | | $ | 8.69 | | $ | 8.50 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.70% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,067.30 | | $ | 1,020.58 |
Expenses Paid During Period* | | $ | 4.36 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,067.80 | | $ | 1,021.82 |
Expenses Paid During Period* | | $ | 3.08 | | $ | 3.01 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.60% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Russell Strategic Bond Fund | | 109 |
Russell Investment Company
Russell Strategic Bond Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,067.50 | | $ | 1,021.32 |
Expenses Paid During Period* | | $ | 3.59 | | $ | 3.51 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.70% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,069.10 | | $ | 1,022.12 |
Expenses Paid During Period* | | $ | 2.77 | | $ | 2.71 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 110 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Long-Term Investments - 89.0% | | | | |
| Asset-Backed Securities - 9.4% | | | | |
Aames Mortgage Investment Trust (Ê)
Series 2006-1 Class A3
0.423% due 04/25/36 | | 6,289 | | 5,116 |
ABFS Mortgage Loan Trust (Ê)(Þ)
Series 2003-2 Class A
0.763% due 04/25/34 | | 602 | | 540 |
Accredited Mortgage Loan Trust (Ê)
Series 2004-2 Class A2
0.563% due 07/25/34 | | 222 | | 139 |
Series 2005-4 Class A2D
0.583% due 12/25/35 | | 1,388 | | 848 |
Series 2006-2 Class A2
0.353% due 09/25/36 | | 1,571 | | 1,516 |
ACE Securities Corp. (Ê)
Series 2003-HE1 Class M1
1.238% due 11/25/33 | | 5,461 | | 4,297 |
Series 2003-OP1 Class M2
1.763% due 12/25/33 | | 257 | | 214 |
Series 2004-IN1 Class A1
0.583% due 05/25/34 | | 388 | | 300 |
Series 2005-HE2 Class M3
0.743% due 04/25/35 | | 1,305 | | 1,178 |
Series 2005-HE5 Class A2C
0.643% due 08/25/35 | | 369 | | 367 |
Series 2005-SD3 Class A
0.663% due 08/25/45 | | 1,056 | | 985 |
Series 2006-FM1 Class A2C
0.413% due 07/25/36 | | 7,595 | | 2,703 |
Series 2006-HE2 Class A2C
0.423% due 05/25/36 | | 3,600 | | 2,725 |
Aegis Asset Backed Securities Trust (Ê)
Series 2003-3 Class M2
2.738% due 01/25/34 | | 1,382 | | 893 |
Series 2005-4 Class 1A3
0.533% due 10/25/35 | | 1,075 | | 1,050 |
Ally Auto Receivables Trust (Þ)
Series 2009-A Class A2
1.320% due 03/15/12 | | 1,600 | | 1,605 |
Ally Master Owner Trust (Ê)(Þ)
Series 2010-1 Class A
2.087% due 01/15/15 | | 10,575 | | 10,589 |
Ameriquest Mortgage Securities, Inc. (Ê)
Series 2002-D Class M1
4.013% due 02/25/33 | | 800 | | 333 |
Series 2004-R10 Class A5
0.653% due 11/25/34 | | 3 | | 3 |
Series 2005-R3 Class A1A
0.463% due 05/25/35 | | 3,108 | | 3,024 |
Series 2005-R6 Class A2
0.463% due 08/25/35 | | 7,483 | | 7,041 |
Series 2005-R7 Class A2C
0.523% due 09/25/35 | | 175 | | 174 |
Series 2005-R10 Class A2B
0.483% due 12/25/35 | | 849 | | 794 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
ARES CLO Funds (Ê)(Å)
Series 2003-7A Class A1B
0.799% due 05/08/15 | | 7,741 | | 7,501 |
Series 2005-10A Class A2
0.501% due 09/18/17 | | 13,524 | | 12,779 |
Argent Securities, Inc. (Ê)
Series 2005-W2 Class A2B1
0.463% due 10/25/35 | | 4,799 | | 4,325 |
Series 2005-W2 Class A2B2
0.523% due 10/25/35 | | 879 | | 793 |
Series 2005-W5 Class A2D
0.583% due 01/25/36 | | 7,650 | | 3,687 |
Arlington Street CDO, Ltd. (Å)
Series 2000-1A Class A2
7.660% due 06/10/12 | | 1,470 | | 1,377 |
Armstrong Loan Funding, Ltd. (Ê)(Å)
Series 2008-1A Class A
0.799% due 08/01/16 | | 3,311 | | 3,194 |
Asset Backed Funding Certificates (Ê)
Series 2006-HE1 Class A2A
0.323% due 01/25/37 | | 439 | | 430 |
Series 2006-HE1 Class A2C
0.423% due 01/25/37 | | 2,745 | | 1,167 |
Series 2006-OPT Class A3A
0.323% due 11/25/36 | | 5 | | 5 |
Series 2006-OPT Class A3B
0.423% due 11/25/36 | | 1,390 | | 745 |
Asset Backed Securities Corp. Home Equity (Ê)
Series 2003-HE1 Class M2
3.779% due 01/15/33 | | 1,882 | | 1,762 |
Series 2004-HE6 Class A1
0.538% due 09/25/34 | | 80 | | 69 |
Series 2004-HE7 Class M9 (Þ)
3.763% due 10/25/34 | | 1,159 | | 74 |
Series 2006-HE3 Class A4
0.433% due 03/25/36 | | 1,266 | | 941 |
Series 2006-HE5 Class A4
0.403% due 07/25/36 | | 5,407 | | 3,683 |
Bank of America Auto Trust (Þ)
Series 2009-1A Class A2
1.700% due 12/15/11 | | 1,080 | | 1,083 |
Bank of America Credit Card Trust (Ê)
Series 2007-A12 Class A12
0.454% due 01/15/13 | | 7,400 | | 7,402 |
Bayview Financial Acquisition Trust
Series 2004-C Class A1 (Ê)
0.895% due 05/28/44 | | 284 | | 249 |
Series 2006-A Class 1A3
5.865% due 02/28/41 | | 1,880 | | 1,410 |
Bear Stearns Asset Backed Securities Trust (Ê)
Series 2005-HE1 Class A2
0.553% due 11/25/35 | | 28 | | 28 |
Series 2006-EC1 Class A2
0.483% due 12/25/35 | | 467 | | 458 |
Series 2006-HE8 Class 2M1
0.593% due 10/25/36 | | 2,000 | | 228 |
| | |
| Russell Strategic Bond Fund | | 111 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-HE9 Class 1A2
0.413% due 11/25/36 | | 4,330 | | 2,043 |
BNC Mortgage Loan Trust (Ê)
Series 2007-2 Class A2
0.363% due 05/25/37 | | 456 | | 401 |
Capital Auto Receivables Asset Trust
Series 2007-3 Class A3A
5.020% due 09/15/11 | | 1,068 | | 1,077 |
Capital One Multi-Asset Execution Trust
Series 2005-A6 Class A6 (Ê)
0.353% due 07/15/15 | | 5,670 | | 5,633 |
Series 2006-A11 Class A11 (Ê)
0.427% due 06/17/19 | | 3,040 | | 2,955 |
Series 2006-B1 Class B1 (Ê)
0.617% due 01/15/19 | | 5,550 | | 5,282 |
Series 2006-C1 Class C (Ê)
0.627% due 03/17/14 | | 4,390 | | 4,334 |
Series 2006-C2 Class C (Ê)
0.637% due 06/16/14 | | 3,585 | | 3,526 |
Series 2007-A4 Class A4 (Ê)
0.284% due 03/16/15 | | 7,150 | | 7,119 |
Series 2008-A5 Class A5
4.850% due 02/18/14 | | 3,535 | | 3,671 |
Carrington Mortgage Loan Trust (Ê)
Series 2006-FRE Class A2
0.383% due 10/25/36 | | 3,029 | | 2,511 |
Series 2006-NC3 Class A4
0.503% due 08/25/36 | | 2,117 | | 821 |
Series 2006-NC5 Class A1
0.313% due 01/25/37 | | 1,564 | | 1,499 |
Centex Home Equity
Series 2002-D Class AF4
5.210% due 11/25/28 | | 111 | | 109 |
Series 2005-D Class AF4
5.270% due 10/25/35 | | 317 | | 314 |
Series 2006-A Class AV4 (Ê)
0.513% due 06/25/36 | | 1,800 | | 1,030 |
Chatham Light CLO, Ltd. (Ê)(Å)
Series 2005-2A Class A1
0.499% due 08/03/19 | | 3,466 | | 3,201 |
CIT Mortgage Loan Trust (Ê)(Å)
Series 2007-1 Class 2A1
1.263% due 10/25/37 | | 2,593 | | 2,465 |
Series 2007-1 Class 2A2
1.479% due 10/25/37 | | 2,100 | | 1,004 |
Series 2007-1 Class 2A3
1.679% due 10/25/37 | | 3,900 | | 1,747 |
Citibank Credit Card Issuance Trust
Series 2008-A5 Class A5
4.850% due 04/22/15 | | 4,555 | | 4,913 |
Citigroup Mortgage Loan Trust, Inc.
Series 2005-WF2 Class AF4
4.964% due 08/25/35 | | 1,433 | | 1,194 |
Series 2006-NC2 Class A2B (Ê)
0.423% due 09/25/36 | | 14,225 | | 6,692 |
Series 2006-WF2 Class A2E
6.351% due 05/25/36 | | 1,092 | | 614 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-WFH Class A3 (Ê)
0.413% due 10/25/36 | | 3,105 | | 2,626 |
0.413% due 11/25/36 | | 2,815 | | 2,119 |
Series 2006-WMC Class A2C (Ê)
0.463% due 12/25/35 | | 2,849 | | 2,636 |
Series 2007-AHL Class A3A (Ê)
0.323% due 07/25/45 | | 1,301 | | 1,018 |
Series 2007-AMC Class A2A (Ê)
0.323% due 05/25/37 | | 3,397 | | 3,089 |
Series 2007-WFH Class A3 (Ê)
0.413% due 01/25/37 | | 1,932 | | 1,416 |
Series 2008-RR1 Class A1A1 (Ê)(Þ)
0.333% due 01/25/37 | | 259 | | 223 |
College Loan Corp. Trust (Ê)(Å)
Series 2002-2 Class A21
1.595% due 03/01/42 | | 2,000 | | 1,700 |
Conseco Finance Home Loan Trust
Series 2000-E Class M1
8.130% due 08/15/31 | | 628 | | 595 |
Conseco Finance Securitizations Corp.
Series 2001-4 Class A4
7.360% due 09/01/33 | | 4,522 | | 4,672 |
Conseco Financial Corp.
Series 1997-5 Class A6
6.820% due 05/15/29 | | 363 | | 369 |
Countrywide Asset-Backed Certificates
Series 2004-AB2 Class M3 (Ê)
0.863% due 05/25/36 | | 1,395 | | 230 |
Series 2004-BC1 Class M1 (Ê)
1.013% due 02/25/34 | | 772 | | 701 |
Series 2005-4 Class AF3
4.456% due 10/25/35 | | 568 | | 538 |
Series 2005-7 Class 3AV3 (Ê)
0.673% due 11/25/35 | | 350 | | 348 |
Series 2005-7 Class AF3
4.454% due 10/25/35 | | 322 | | 317 |
Series 2005-11 Class 3AV2 (Ê)
0.553% due 02/25/36 | | 1,704 | | 1,625 |
Series 2005-12 Class 2A3
5.069% due 02/25/36 | | 822 | | 798 |
Series 2005-17 Class 1AF3
5.711% due 05/25/36 | | 10,900 | | 3,841 |
Series 2005-AB1 Class A2 (Ê)
0.473% due 08/25/35 | | 805 | | 786 |
Series 2006-1 Class AF3
5.348% due 07/25/36 | | 1,822 | | 1,494 |
Series 2006-3 Class 2A2 (Ê)
0.443% due 06/25/36 | | 3,937 | | 3,321 |
Series 2006-6 Class 2A3 (Ê)
0.543% due 09/25/36 | | 13,985 | | 5,020 |
Series 2006-11 Class 1AF3
6.050% due 09/25/46 | | 2,074 | | 903 |
Series 2006-11 Class 1AF4
6.300% due 09/25/46 | | 2,327 | | 745 |
Series 2006-13 Class 1AF3
5.944% due 01/25/37 | | 4,085 | | 2,157 |
Series 2006-15 Class A1 (Ê)
0.373% due 10/25/46 | | 68 | | 67 |
| | |
| 112 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-15 Class A3
5.689% due 10/25/46 | | 1,655 | | 1,133 |
Series 2006-22 Class 2A1 (Ê)
0.313% due 05/25/47 | | 106 | | 103 |
Series 2006-23 Class 2A1 (Ê)
0.313% due 05/25/37 | | 82 | | 80 |
Series 2006-26 Class 2A1 (Ê)
0.343% due 06/25/37 | | 55 | | 53 |
Series 2006-BC1 Class 2A2 (Ê)
0.443% due 04/25/36 | | 427 | | 395 |
Series 2006-S1 Class A2
5.549% due 08/25/21 | | 168 | | 137 |
Series 2006-S6 Class A2
5.519% due 03/25/34 | | 4,434 | | 3,610 |
Series 2007-4 Class A2
5.530% due 09/25/37 | | 8,943 | | 8,124 |
Series 2007-7 Class 2A1 (Ê)
0.343% due 10/25/47 | | 307 | | 293 |
Series 2007-12 Class 2A1 (Ê)
0.613% due 05/25/29 | | 3,936 | | 3,649 |
Countrywide Home Equity Loan Trust (Ê)
Series 2006-HW Class 2A1B
0.380% due 11/15/36 | | 3,065 | | 2,485 |
Credit Suisse First Boston Mortgage Securities Corp.
Series 2005-AGE Class A2
4.640% due 02/25/32 | | 149 | | 147 |
Credit-Based Asset Servicing and Securitization LLC
Series 2004-CB7 Class AF5
4.585% due 10/25/34 | | 770 | | 760 |
Series 2007-CB1 Class AF2
5.721% due 01/25/37 | | 2,035 | | 944 |
Series 2007-CB4 Class A1A (Ê)
0.353% due 04/25/37 | | 4,261 | | 3,717 |
CSAB Mortgage Backed Trust
Series 2006-4 Class A1A
5.868% due 12/25/36 | | 65 | | 63 |
Daimler Chrysler Auto Trust (Ê)
Series 2008-B Class A2B
1.181% due 07/08/11 | | 72 | | 72 |
Series 2008-B Class A3B
1.731% due 09/10/12 | | 300 | | 302 |
Discover Card Master Trust
Series 2008-A3 Class A3
5.100% due 10/15/13 | | 7,380 | | 7,678 |
Series 2008-A4 Class A4
5.650% due 12/15/15 | | 5,225 | | 5,771 |
Series 2009-A2 Class A (Ê)
1.637% due 02/17/15 | | 2,775 | | 2,834 |
Series 2010-A1 Class A1 (Ê)
0.987% due 09/15/15 | | 3,560 | | 3,582 |
Discover Card Master Trust I (Ê)
Series 2006-2 Class A3
0.417% due 01/19/16 | | 7,290 | | 7,198 |
Series 2007-3 Class A2
0.387% due 10/16/14 | | 4,730 | | 4,701 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Dunkin Securitization (Þ)
Series 2006-1 Class A2
5.779% due 06/20/31 | | 9,890 | | 9,693 |
Educational Services of America, Inc. (Ê)(Å)
Series 2010-1 Class A1
1.100% due 07/25/23 | | 4,500 | | 4,490 |
Ellington Loan Acquisition Trust (Ê)(Þ)
Series 2007-2 Class A2A
1.163% due 05/25/37 | | 6,933 | | 6,263 |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2000-30 Class A5
8.367% due 12/25/30 | | 487 | | 530 |
FHA PJ Reilly 67 NCP
7.430% due 07/01/24 | | 56 | | 56 |
Fieldstone Mortgage Investment Corp. (Ê) | | | | |
Series 2006-1 Class A2
0.453% due 05/25/36 | | 2,440 | | 1,545 |
Series 2006-3 Class 2A1
0.333% due 11/25/36 | | 45 | | 44 |
Series 2006-3 Class 2A3
0.423% due 11/25/36 | | 1,465 | | 560 |
First Franklin Mortgage Loan Asset Backed Certificates (Ê) | | | | |
Series 2006-FF1 Class 2A2
0.363% due 08/25/36 | | 1,724 | | 1,643 |
Series 2006-FF1 Class 2A3
0.403% due 12/25/36 | | 6,005 | | 2,568 |
Series 2006-FF1 Class A2
0.323% due 10/25/36 | | 389 | | 378 |
Series 2006-FF1 Class A2C
0.423% due 10/25/36 | | 2,621 | | 1,374 |
Series 2006-FF1 Class A3
0.313% due 11/25/36 | | 322 | | 316 |
Series 2006-FF1 Class A5
0.573% due 07/25/36 | | 1,378 | | 345 |
0.423% due 11/25/36 | | 5,321 | | 2,172 |
0.413% due 12/25/36 | | 4,675 | | 1,691 |
Series 2006-FF9 Class M1
0.513% due 06/25/36 | | 8,330 | | 159 |
Series 2007-FF1 Class A2A
0.303% due 01/25/38 | | 80 | | 79 |
Series 2007-FF1 Class A2B
0.353% due 01/25/38 | | 25,000 | | 13,918 |
Series 2007-FF1 Class A2C
0.403% due 01/25/38 | | 1,510 | | 733 |
First NLC Trust (Ê)
Series 2005-2 Class AV2
0.563% due 09/25/35 | | 321 | | 315 |
Ford Credit Auto Owner Trust
Series 2009-C Class A2
2.000% due 12/15/11 | | 472 | | 473 |
Ford Credit Floorplan Master Owner Trust (Ê)(Þ)
Series 2010-1 Class A
1.987% due 12/15/14 | | 4,220 | | 4,267 |
Series 2010-3 Class A2
2.037% due 02/15/17 | | 6,300 | | 6,309 |
| | |
| Russell Strategic Bond Fund | | 113 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Fremont Home Loan Trust (Ê)
Series 2006-3 Class 2A2
0.383% due 02/25/37 | | 3,704 | | 3,150 |
Series 2006-B Class 2A3
0.423% due 08/25/36 | | 2,760 | | 969 |
Series 2006-E Class 2A1
0.323% due 01/25/37 | | 196 | | 165 |
GE Capital Credit Card Master Note Trust (Ê)
Series 2005-3 Class B
0.554% due 06/15/13 | | 1,345 | | 1,344 |
GE Equipment Midticket LLC
Series 2009-1 Class A3
2.340% due 06/17/13 | | 3,180 | | 3,222 |
Green Tree (Þ)
Series 2008-MH1 Class A3
8.970% due 04/25/38 | | 6,096 | | 6,300 |
Green Tree Financial Corp.
Series 1994-1 Class A5
7.650% due 04/15/19 | | 2,696 | | 2,786 |
Series 1994-3 Class A5
8.400% due 06/15/19 | | 1,505 | | 1,534 |
Series 1994-5 Class A5
8.300% due 11/15/19 | | 1,712 | | 1,743 |
GSAA Trust
Series 2006-2 Class 2A3 (Ê)
0.533% due 12/25/35 | | 3,270 | | 2,627 |
Series 2006-4 Class 1A2
5.870% due 03/25/36 | | 360 | | 38 |
Series 2006-4 Class 3A1
6.054% due 03/25/36 | | 18,954 | | 12,447 |
GSAMP Trust (Ê)
Series 2003-HE2 Class M1
1.238% due 08/25/33 | | 597 | | 366 |
Series 2006-HE5 Class A2B
0.363% due 08/25/36 | | 687 | | 633 |
Series 2007-FM1 Class A2A
0.333% due 12/25/36 | | 400 | | 268 |
Series 2007-H1 Class M1
0.603% due 01/25/47 | | 3,621 | | 59 |
Harley-Davidson Motorcycle Trust
Series 2009-2 Class A3
2.850% due 03/15/14 | | 6,720 | | 6,846 |
Home Equity Asset Trust (Ê)
Series 2005-5 Class 2A2
0.513% due 11/25/35 | | 1,777 | | 1,729 |
Series 2005-7 Class M1
0.713% due 01/25/36 | | 6,285 | | 2,346 |
Series 2006-4 Class M3
0.623% due 08/25/36 | | 1,267 | | 4 |
Series 2006-7 Class 2A3
0.413% due 01/25/37 | | 2,650 | | 440 |
Home Equity Loan Trust (Ê)
Series 2007-FRE Class 2AV1
0.393% due 04/25/37 | | 8,215 | | 6,500 |
HSBC Home Equity Loan Trust (Ê)
Series 2005-1 Class A
0.546% due 01/20/34 | | 2,342 | | 2,129 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-2 Class A1
0.406% due 03/20/36 | | 4,906 | | 4,615 |
Series 2007-1 Class AS
0.456% due 03/20/36 | | 4,241 | | 3,883 |
Series 2007-2 Class A1V
0.346% due 07/20/36 | | 291 | | 287 |
Series 2007-2 Class A3V
0.476% due 07/20/36 | | 5,360 | | 4,695 |
Series 2007-3 Class A1
1.056% due 11/20/36 | | 443 | | 433 |
Series 2007-3 Class APT
1.456% due 11/20/36 | | 5,142 | | 4,440 |
HSI Asset Securitization Corp. Trust (Ê)
Series 2006-HE2 Class 2A1
0.313% due 12/25/36 | | 212 | | 165 |
Series 2006-HE2 Class 2A2
0.373% due 12/25/36 | | 1,830 | | 699 |
Indymac Residential Asset Backed Trust (Ê)
Series 2006-E Class 2A3
0.433% due 04/25/37 | | 7,930 | | 3,345 |
Series 2006-H2 Class A
0.415% due 06/28/36 | | 1,432 | | 570 |
IXIS Real Estate Capital Trust (Ê)
Series 2006-HE1 Class A3
0.463% due 03/25/36 | | 661 | | 530 |
JPMorgan Mortgage Acquisition Corp.
Series 2006-CH1 Class A3 (Ê)
0.363% due 07/25/36 | | 1,422 | | 1,327 |
Series 2007-CH1 Class AV4 (Ê)
0.393% due 10/25/36 | | 2,777 | | 2,293 |
Series 2007-CH2 Class AV4 (Ê)
0.413% due 11/25/37 | | 22,370 | | 10,307 |
Series 2007-HE1 Class AF4
6.311% due 03/25/47 | | 510 | | 263 |
Series 2007-HE1 Class AF5
6.311% due 03/25/47 | | 1,015 | | 521 |
Series 2007-HE1 Class AV1 (Ê)
0.323% due 03/25/47 | | 222 | | 160 |
Lehman XS Trust (Ê)
Series 2005-1 Class 2A2
1.746% due 07/25/35 | | 493 | | 320 |
Series 2005-5N Class 1A1
0.563% due 11/25/35 | | 581 | | 402 |
Series 2005-5N Class 3A1A
0.563% due 11/25/35 | | 1,926 | | 1,317 |
Series 2005-7N Class 1A1A
0.533% due 12/25/35 | | 5,842 | | 3,998 |
Series 2005-9N Class 1A1
0.533% due 02/25/36 | | 1,127 | | 631 |
Series 2005-9N Class 1A2
0.613% due 02/25/36 | | 6,273 | | 1,641 |
Series 2006-4N Class A2A
0.483% due 04/25/46 | | 3,494 | | 1,721 |
Series 2006-11 Class 2A1
0.393% due 06/25/46 | | 2,222 | | 1,787 |
Series 2006-16N Class A1A
0.343% due 11/25/46 | | 199 | | 200 |
| | |
| 114 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-16N Class A4A
0.453% due 11/25/46 | | 3,580 | | 1,924 |
Long Beach Mortgage Loan Trust (Ê)
Series 2002-5 Class M1
1.508% due 11/25/32 | | 2,971 | | 2,436 |
Series 2003-3 Class M1
1.388% due 07/25/33 | | 3,732 | | 2,992 |
Series 2004-4 Class 1A1
0.543% due 10/25/34 | | 39 | | 33 |
Series 2004-6 Class A3
0.913% due 11/25/34 | | 2,330 | | 1,666 |
Series 2005-3 Class 2A2
0.543% due 08/25/45 | | 1,069 | | 1,037 |
Series 2006-6 Class 2A2
0.363% due 07/25/36 | | 685 | | 451 |
Series 2006-9 Class 2A2
0.373% due 10/25/36 | | 4,486 | | 1,871 |
Series 2006-9 Class 2A3
0.423% due 10/25/36 | | 2,846 | | 1,169 |
Mastr Asset Backed Securities Trust (Ê)
Series 2003-WMC Class M2
2.738% due 08/25/33 | | 534 | | 307 |
Series 2005-WMC Class M1
0.683% due 03/25/35 | | 1,287 | | 1,268 |
Series 2006-AB1 Class A2
0.493% due 02/25/36 | | 2,229 | | 2,000 |
Series 2006-NC2 Class A4
0.413% due 08/25/36 | | 9,000 | | 3,456 |
Series 2007-HE1 Class A1
0.343% due 05/25/37 | | 527 | | 507 |
Merrill Lynch First Franklin Mortgage Loan Trust (Ê)
Series 2007-1 Class A2B
0.433% due 04/25/37 | | 4,081 | | 2,112 |
Mid-State Trust
Series 2003-11 Class A1
4.864% due 07/15/38 | | 159 | | 150 |
Series 2004-1 Class A
6.005% due 08/15/37 | | 185 | | 184 |
Series 2005-1 Class A
5.745% due 01/15/40 | | 250 | | 250 |
Series 2006-1 Class A (Þ)
5.787% due 10/15/40 | | 832 | | 833 |
Morgan Stanley ABS Capital I (Ê)
Series 2003-NC8 Class M1
1.313% due 09/25/33 | | 2,863 | | 2,152 |
Series 2003-NC8 Class M3
3.413% due 09/25/33 | | 260 | | 56 |
Series 2006-HE1 Class A3
0.443% due 01/25/36 | | 4,600 | | 4,034 |
Series 2006-HE2 Class M1
0.593% due 03/25/36 | | 10,623 | | 103 |
Series 2006-HE2 Class M2
0.613% due 03/25/36 | | 1,283 | | 4 |
Series 2006-HE3 Class A2C
0.423% due 04/25/36 | | 1,457 | | 966 |
Series 2006-HE3 Class M2
0.563% due 04/25/36 | | 12,735 | | 91 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-HE4 Class A3
0.413% due 06/25/36 | | 785 | | 489 |
Series 2006-HE5 Class A2C
0.403% due 08/25/36 | | 6,480 | | 4,169 |
Series 2006-HE5 Class A2D
0.513% due 08/25/36 | | 3,650 | | 1,534 |
Series 2006-HE6 Class A2C
0.413% due 09/25/36 | | 9,465 | | 3,564 |
Series 2006-HE7 Class A2A
0.313% due 09/25/36 | | 74 | | 74 |
Series 2006-HE8 Class A2C
0.403% due 10/25/36 | | 4,635 | | 1,993 |
Series 2006-NC2 Class A2D
0.553% due 02/25/36 | | 11,837 | | 5,130 |
Series 2006-NC5 Class A2A
0.303% due 10/25/36 | | 758 | | 748 |
Series 2006-NC5 Class A2C
0.413% due 10/25/36 | | 610 | | 245 |
Series 2006-WMC Class A2C
0.413% due 07/25/36 | | 11,339 | | 4,086 |
Series 2006-WMC Class A2FP
0.313% due 07/25/36 | | 63 | | 23 |
Series 2007-HE2 Class A2A
0.303% due 01/25/37 | | 718 | | 701 |
Series 2007-NC2 Class A2C
0.523% due 02/25/37 | | 5,393 | | 1,821 |
Series 2007-NC2 Class A2D
0.593% due 02/25/37 | | 2,480 | | 957 |
Morgan Stanley Home Equity Loan Trust (Ê)
Series 2007-1 Class A1
0.313% due 12/25/36 | | 1,293 | | 1,256 |
Morgan Stanley IXIS Real Estate Capital Trust (Ê)
Series 2006-2 Class A1
0.313% due 11/25/36 | | 23 | | 22 |
Series 2006-2 Class A3
0.413% due 11/25/36 | | 9,980 | | 3,822 |
Morgan Stanley Mortgage Loan Trust (Ê)
Series 2006-12X Class A1
0.383% due 10/25/36 | | 18 | | 17 |
Nationstar Home Equity Loan Trust (Ê)
Series 2007-A Class AV4
0.493% due 03/25/37 | | 6,789 | | 3,479 |
New Century Home Equity Loan Trust (Ê)
Series 2004-4 Class M2
0.793% due 02/25/35 | | 2,100 | | 1,423 |
Nissan Auto Receivables Owner Trust
Series 2009-A Class A3
3.200% due 02/15/13 | | 1,915 | | 1,965 |
Nissan Master Owner Trust Receivables (Ê)(Þ)
Series 2010-AA Class A
1.487% due 01/15/15 | | 9,325 | | 9,350 |
Option One Mortgage Loan Trust (Ê)
Series 2003-2 Class M2
2.813% due 04/25/33 | | 340 | | 101 |
| | |
| Russell Strategic Bond Fund | | 115 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2003-3 Class M3
3.263% due 06/25/33 | | 180 | | 66 |
Series 2003-4 Class M2
2.738% due 07/25/33 | | 201 | | 64 |
Series 2005-2 Class A5
0.593% due 05/25/35 | | 1,079 | | 1,045 |
Series 2005-4 Class A3
0.523% due 11/25/35 | | 267 | | 244 |
Series 2007-2 Class 3A1
0.353% due 03/25/37 | | 313 | | 302 |
Park Place Securities, Inc. (Ê)
Series 2004-MCW Class A1
0.575% due 10/25/34 | | 599 | | 575 |
Series 2004-WHQ Class A3E
0.683% due 02/25/35 | | 1,219 | | 1,206 |
Series 2005-WCW Class M1
0.713% due 09/25/35 | | 2,080 | | 1,329 |
Series 2005-WHQ Class A2C
0.513% due 09/25/35 | | 507 | | 505 |
Series 2005-WHQ Class A2D
0.593% due 06/25/35 | | 960 | | 946 |
Series 2005-WLL Class M1
0.683% due 03/25/35 | | 2,575 | | 2,510 |
Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.680% due 01/25/36 | | 1,443 | | 1,337 |
Series 2005-6 Class A5
6.085% due 01/25/36 | | 7,830 | | 4,748 |
Providian Master Note Trust (Ê)(Þ)
Series 2006-C1A Class C1
0.887% due 03/15/15 | | 8,080 | | 8,019 |
Renaissance Home Equity Loan Trust
Series 2005-1 Class M1
5.357% due 05/25/35 | | 817 | | 383 |
Series 2005-2 Class AF4
4.934% due 08/25/35 | | 815 | | 675 |
Series 2005-4 Class A3
5.565% due 02/25/36 | | 258 | | 244 |
Series 2006-1 Class AF3
5.608% due 05/25/36 | | 175 | | 144 |
Series 2006-1 Class AF6
5.746% due 05/25/36 | | 1,706 | | 985 |
Series 2006-2 Class AF2
5.762% due 08/25/36 | | 311 | | 305 |
Series 2007-1 Class AF2
5.512% due 04/25/37 | | 6,020 | | 3,183 |
Series 2007-2 Class AF2
5.675% due 06/25/37 | | 1,815 | | 929 |
Residential Asset Mortgage Products, Inc.
Series 2003-RS1 Class AI6A
5.980% due 12/25/33 | | 1,211 | | 1,102 |
Series 2005-RS2 Class AII3 (Ê)
0.613% due 02/25/35 | | 1,017 | | 993 |
Series 2007-RS2 Class A1 (Ê) 0.383% due 05/25/37 | | 276 | | 262 |
Residential Asset Securities Corp.
Series 2001-KS3 Class AII (Ê)
0.723% due 09/25/31 | | 149 | | 108 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2003-KS2 Class MI1
4.800% due 04/25/33 | | 1,198 | | 556 |
Series 2003-KS2 Class MI3
6.100% due 04/25/33 | | 514 | | 78 |
Series 2003-KS4 Class AIIB (Ê)
0.843% due 06/25/33 | | 254 | | 131 |
Series 2005-AHL Class A2 (Ê)
0.533% due 07/25/35 | | 1,429 | | 1,349 |
Series 2005-KS1 Class A3 (Ê)
0.583% due 01/25/36 | | 894 | | 622 |
Series 2005-KS5 Class M1 (Ê)
0.673% due 06/25/35 | | 667 | | 662 |
Series 2006-KS1 Class A4 (Ê)
0.563% due 02/25/36 | | 2,479 | | 1,476 |
Series 2006-KS3 Class AI3 (Ê)
0.433% due 04/25/36 | | 573 | | 528 |
Series 2006-KS7 Class A2 (Ê)
0.363% due 09/25/36 | | 253 | | 246 |
Saxon Asset Securities Trust (Ê)
Series 2005-4 Class A2C
0.513% due 11/25/37 | | 1,628 | | 1,555 |
Series 2006-3 Class A2
0.373% due 10/25/46 | | 3,806 | | 3,609 |
Series 2007-3 Class 2A1
0.483% due 09/25/37 | | 1,435 | | 1,222 |
SBI Heloc Trust (Ê)(Þ)
Series 2006-1A Class 1A2A
0.433% due 08/25/36 | | 84 | | 81 |
Securitized Asset Backed Receivables LLC Trust (Ê)
Series 2005-FR5 Class A1A
0.553% due 08/25/35 | | 2,302 | | 2,178 |
Series 2005-HE1 Class A1A (Þ)
0.563% due 10/25/35 | | 875 | | 866 |
Series 2006-HE1 Class M1
0.563% due 07/25/36 | | 2,122 | | 6 |
Series 2007-BR2 Class A2
0.493% due 02/25/37 | | 4,022 | | 1,905 |
Series 2007-HE1 Class A2A
0.323% due 12/25/36 | | 474 | | 181 |
Series 2007-NC1 Class A2B
0.413% due 12/25/36 | | 9,135 | | 3,643 |
SG Mortgage Securities Trust (Ê)
Series 2006-FRE Class A2B
0.443% due 02/25/36 | | 2,111 | | 1,142 |
Series 2006-OPT Class A3C
0.413% due 10/25/36 | | 15,040 | | 6,234 |
SLM Student Loan Trust (Ê)
Series 2006-7 Class A4
0.386% due 04/25/22 | | 8,500 | | 8,437 |
Series 2006-8 Class A2
0.316% due 10/25/16 | | 789 | | 788 |
Series 2007-3 Class A1
0.306% due 10/27/14 | | 76 | | 76 |
Series 2008-2 Class A1
0.616% due 01/25/15 | | 106 | | 106 |
Series 2008-7 Class A2
0.816% due 10/25/17 | | 33,000 | | 32,994 |
| | |
| 116 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2010-1 Class A
0.654% due 03/25/25 | | 8,000 | | 8,000 |
Small Business Administration Participation Certificates
Series 2004-20F Class 1
5.520% due 06/01/24 | | 244 | | 261 |
Series 2005-20G Class 1
4.750% due 07/01/25 | | 3,128 | | 3,316 |
Soundview Home Equity Loan Trust (Ê)
Series 2005-OPT Class 2A3
0.523% due 12/25/35 | | 4,065 | | 3,477 |
Series 2006-EQ1 Class A3
0.423% due 10/25/36 | | 6,130 | | 3,440 |
Series 2006-EQ2 Class A3
0.423% due 01/25/37 | | 17,529 | | 7,904 |
Series 2006-OPT Class 2A4
0.503% due 07/25/36 | | 3,325 | | 1,354 |
Series 2006-OPT Class M3
0.583% due 07/25/36 | | 2,121 | | 31 |
Series 2007-NS1 Class A1
0.383% due 01/25/37 | | 2,077 | | 2,009 |
Series 2007-OPT Class 2A1
0.343% due 06/25/37 | | 1,120 | | 958 |
Series 2007-OPT Class 2A2
0.393% due 07/25/37 | | 4,200 | | 2,062 |
Specialty Underwriting & Residential Finance (Ê)
Series 2005-BC3 Class A2C
0.633% due 06/25/36 | | 4,603 | | 4,578 |
Series 2005-BC4 Class A2B
0.493% due 09/25/36 | | 1,122 | | 1,090 |
Series 2006-BC3 Class M2
0.553% due 06/25/37 | | 1,485 | | 24 |
Series 2006-BC5 Class A2D
0.413% due 11/25/37 | | 13,185 | | 5,034 |
Structured Asset Investment Loan Trust (Ê)
Series 2003-BC1 Class 3A
0.943% due 11/25/33 | | 12 | | 10 |
Series 2003-BC1 Class A2
0.943% due 01/25/33 | | 3,751 | | 3,041 |
Series 2006-BNC Class A2
0.303% due 09/25/36 | | 50 | | 50 |
Series 2006-BNC Class A3
0.413% due 09/25/36 | | 13,040 | | 7,489 |
Structured Asset Securities Corp.
Series 2001-SB1 Class A2
3.375% due 08/25/31 | | 617 | | 530 |
Series 2005-2XS Class 1A2A
4.510% due 02/25/35 | | 513 | | 493 |
Series 2005-4XS Class 1A2B
4.670% due 03/25/35 | | 160 | | 155 |
Series 2005-GEL Class A (Ê)
0.613% due 12/25/34 | | 240 | | 232 |
Series 2006-BC3 Class A2 (Ê)
0.313% due 10/25/36 | | 1,264 | | 1,252 |
Series 2006-GEL Class A1 (Ê)(Þ)
0.403% due 11/25/35 | | 1,056 | | 1,041 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-WF2 Class A3 (Ê)
0.413% due 07/25/36 | | 9,823 | | 8,371 |
Series 2007-BC3 Class 2A1 (Ê)
0.323% due 05/25/47 | | 7,629 | | 7,265 |
Series 2007-BC3 Class 2A2 (Ê)
0.403% due 05/25/47 | | 14,428 | | 9,335 |
Washington Mutual Asset-Backed Certificates (Ê)
Series 2006-HE5 Class 2A1
0.323% due 10/25/36 | | 990 | | 695 |
Series 2007-HE2 Class 2A2
0.483% due 02/25/37 | | 9,419 | | 3,296 |
Series 2007-HE3 Class 2A1
0.353% due 05/25/47 | | 761 | | 694 |
Washington Mutual Master Note Trust (Ê)(Þ)
Series 2006-C2A Class C2
0.837% due 08/15/15 | | 90 | | 89 |
Series 2007-C1 Class C1
0.654% due 05/15/14 | | 810 | | 810 |
Wells Fargo Home Equity Trust (Ê)
Series 2005-3 Class AI1A
0.533% due 11/25/35 | | 115 | | 113 |
World Omni Auto Receivables Trust
Series 2009-A Class A3
3.330% due 05/15/13 | | 3,545 | | 3,630 |
| | | | |
| | | | 707,310 |
| | | | |
| |
| Corporate Bonds and Notes - 18.6% | | |
ACE Capital Trust II
9.700% due 04/01/30 | | 1,425 | | 1,730 |
AES Corp. (The) (Ñ)(Þ)
8.750% due 05/15/13 | | 7,650 | | 7,765 |
Aetna, Inc. (Ñ)
6.500% due 09/15/18 | | 1,690 | | 1,916 |
Allied Waste NA, Inc. (Ñ)
Series B
7.125% due 05/15/16 | | 660 | | 720 |
Allstate Life Global Funding Trusts
5.375% due 04/30/13 | | 2,200 | | 2,416 |
Alltel Corp.
7.000% due 07/01/12 (Ñ) | | 1,955 | | 2,174 |
6.800% due 05/01/29 (Ñ) | | 2,465 | | 2,723 |
7.875% due 07/01/32 | | 910 | | 1,120 |
Altria Group, Inc.
7.750% due 02/06/14 (Ñ) | | 4,360 | | 5,026 |
9.250% due 08/06/19 | | 4,190 | | 5,176 |
10.200% due 02/06/39 | | 1,580 | | 2,177 |
American Airlines Pass Through Trust
2001-01
Series 01-1
6.817% due 05/23/11 | | 1,290 | | 1,290 |
6.977% due 11/23/22 | | 199 | | 165 |
American Airlines Pass Through Trust
2001-02
Series 01-2
6.978% due 10/01/12 | | 655 | | 655 |
| | |
| Russell Strategic Bond Fund | | 117 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
American Airlines Pass Through Trust
2009-1A (Ñ)
10.375% due 07/02/19 | | 1,490 | | 1,724 |
American Express Bank FSB
Series BKNT
5.500% due 04/16/13 (Ñ) | | 700 | | 757 |
6.000% due 09/13/17 | | 600 | | 648 |
American Express Centurion Bank (Ñ)
Series BKN1
6.000% due 09/13/17 | | 600 | | 648 |
American Express Co.
7.000% due 03/19/18 | | 400 | | 457 |
American Express Credit Corp.
5.875% due 05/02/13 | | 2,000 | | 2,187 |
Series C
7.300% due 08/20/13 | | 915 | | 1,043 |
American General Finance Corp.
0.530% due 08/17/11 (Ê) | | 10,000 | | 9,196 |
6.900% due 12/15/17 (Ñ) | | 600 | | 504 |
Series MTNI (Ñ)
4.875% due 07/15/12 | | 200 | | 186 |
American International Group, Inc.
5.050% due 10/01/15 (Ñ) | | 400 | | 377 |
5.850% due 01/16/18 (Ñ) | | 8,500 | | 7,912 |
6.250% due 03/15/87 | | 3,700 | | 2,831 |
Series WI
8.250% due 08/15/18 | | 9,100 | | 9,709 |
Ameriprise Financial, Inc.
5.300% due 03/15/20 | | 2,925 | | 3,048 |
7.518% due 06/01/66 | | 8,535 | | 8,620 |
AmerisourceBergen Corp.
5.875% due 09/15/15 | | 15 | | 17 |
Series WI
5.625% due 09/15/12 | | 3,085 | | 3,342 |
Amgen, Inc. (Ñ)
6.150% due 06/01/18 | | 5,600 | | 6,407 |
Amsouth Bank (Ñ)
Series AI
4.850% due 04/01/13 | | 1,360 | | 1,360 |
Anadarko Petroleum Corp.
5.950% due 09/15/16 | | 3,299 | | 3,662 |
Anheuser-Busch InBev Worldwide, Inc.
4.125% due 01/15/15 | | 5,400 | | 5,606 |
7.750% due 01/15/19 (Þ) | | 20,705 | | 24,921 |
5.375% due 01/15/20 (Ñ) | | 5,400 | | 5,646 |
Appalachian Power Co.
Series O
5.650% due 08/15/12 | | 980 | | 1,056 |
Arizona Public Service Co.
5.800% due 06/30/14 | | 1,675 | | 1,833 |
6.250% due 08/01/16 | | 1,350 | | 1,466 |
8.750% due 03/01/19 | | 1,250 | | 1,535 |
AT&T Corp.
7.300% due 11/15/11 | | 475 | | 518 |
8.000% due 11/15/31 | | 3,040 | | 3,757 |
AT&T, Inc.
4.950% due 01/15/13 | | 100 | | 108 |
5.500% due 02/01/18 (Ñ) | | 100 | | 108 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
6.300% due 01/15/38 | | 3,325 | | 3,454 |
6.400% due 05/15/38 | | 3,375 | | 3,539 |
Bank of America Capital Trust XV (Ê)
1.052% due 06/01/56 | | 3,800 | | 2,361 |
Bank of America Corp.
4.500% due 04/01/15 | | 2,445 | | 2,467 |
6.500% due 08/01/16 | | 3,500 | | 3,775 |
5.625% due 10/14/16 | | 610 | | 633 |
6.000% due 09/01/17 | | 5,165 | | 5,362 |
5.750% due 12/01/17 (Ñ) | | 4,095 | | 4,184 |
Bank of America NA
Series BKNT
0.537% due 06/15/16 (Ê)(Ñ) | | 3,100 | | 2,802 |
0.557% due 06/15/17 (Ê) | | 4,175 | | 3,660 |
6.100% due 06/15/17 (Ñ) | | 1,000 | | 1,041 |
6.000% due 10/15/36 (Ñ) | | 500 | | 467 |
BankAmerica Capital III (Ê)
Series *
0.873% due 01/15/27 | | 2,300 | | 1,710 |
BankBoston Capital Trust III (Ê)
1.007% due 06/15/27 | | 3,500 | | 2,584 |
Barnett Capital III (Ê)
0.969% due 02/01/27 | | 1,250 | | 915 |
Bear Stearns Cos. LLC (The)
0.646% due 08/15/11 (Ê) | | 300 | | 300 |
5.550% due 01/22/17 (Ñ) | | 3,156 | | 3,297 |
7.250% due 02/01/18 | | 7,325 | | 8,450 |
BellSouth Telecommunications, Inc.
7.000% due 12/01/95 | | 2,865 | | 3,025 |
Best Buy Co., Inc.
6.750% due 07/15/13 | | 5,545 | | 6,204 |
BNP Paribas Capital Trust (ƒ)(Å)
9.003% due 12/29/49 | | 3,450 | | 3,381 |
Boardwalk Pipelines, LP
5.875% due 11/15/16 | | 3,250 | | 3,553 |
Boston Scientific Corp.
4.500% due 01/15/15 | | 6,320 | | 6,199 |
6.400% due 06/15/16 | | 2,570 | | 2,693 |
6.000% due 01/15/20 (Ñ) | | 1,150 | | 1,137 |
7.000% due 11/15/35 | | 750 | | 722 |
7.375% due 01/15/40 (Ñ) | | 1,400 | | 1,424 |
Burlington Northern and Santa Fe Railway Co. 2005-4 Pass Through Trust
4.967% due 04/01/23 | | 182 | | 198 |
Burlington Northern Santa Fe LLC
6.875% due 12/01/27 | | 160 | | 177 |
6.750% due 03/15/29 (Ñ) | | 110 | | 121 |
Capital One Financial Corp. (Ñ)
7.375% due 05/23/14 | | 1,964 | | 2,270 |
Capmark Financial Group, Inc. (Ø)
6.300% due 05/10/17 | | 1,140 | | 438 |
Carolina Power & Light Co.
6.500% due 07/15/12 | | 105 | | 116 |
5.300% due 01/15/19 (Ñ) | | 1,760 | | 1,892 |
CBA Capital Trust II (ƒ)(Ñ)(Þ)
6.024% due 03/29/49 | | 3,700 | | 3,529 |
CC Holdings GS V LLC / Crown Castle GS III Corp. (Þ)
7.750% due 05/01/17 | | 845 | | 919 |
| | |
| 118 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
CEDC Finance Corp. International, Inc. (Ñ)(Þ)
9.125% due 12/01/16 | | 1,750 | | 1,855 |
Cellco Partnership / Verizon Wireless Capital LLC
8.500% due 11/15/18 | | 2,750 | | 3,479 |
Cemex Finance LLC (Þ)
9.500% due 12/14/16 | | 920 | | 929 |
CenterPoint Energy Houston Electric LLC
Series J2
5.700% due 03/15/13 | | 605 | | 666 |
CenterPoint Energy Resources Corp.
6.125% due 11/01/17 | | 860 | | 933 |
6.250% due 02/01/37 | | 225 | | 227 |
Series B
7.875% due 04/01/13 | | 3,970 | | 4,554 |
CF Industries, Inc.
6.875% due 05/01/18 | | 765 | | 798 |
Chase Capital III (Ê)
Series C
0.802% due 03/01/27 | | 2,740 | | 2,172 |
Chesapeake Energy Corp.
7.625% due 07/15/13 | | 1,375 | | 1,425 |
7.000% due 08/15/14 | | 3,990 | | 4,045 |
6.875% due 01/15/16 | | 840 | | 838 |
CHS/Community Health Systems, Inc.
Series WI
8.875% due 07/15/15 | | 4,015 | | 4,216 |
Chubb Corp.
6.375% due 03/29/67 | | 2,450 | | 2,453 |
Citibank NA
1.875% due 06/04/12 (Ñ) | | 1,400 | | 1,420 |
Series FXD
1.875% due 05/07/12 | | 2,700 | | 2,739 |
Citigroup Capital XXI (Ñ)
8.300% due 12/21/57 | | 5,100 | | 5,100 |
Citigroup Funding, Inc.
2.250% due 12/10/12 | | 5,400 | | 5,505 |
Citigroup, Inc.
2.125% due 04/30/12 | | 2,700 | | 2,754 |
5.500% due 08/27/12 | | 2,500 | | 2,627 |
5.625% due 08/27/12 | | 2,835 | | 2,985 |
5.300% due 10/17/12 | | 1,000 | | 1,051 |
5.500% due 04/11/13 | | 7,900 | | 8,343 |
5.850% due 07/02/13 (Ñ) | | 700 | | 747 |
6.375% due 08/12/14 (Ñ) | | 1,900 | | 2,050 |
5.000% due 09/15/14 | | 6,525 | | 6,605 |
0.627% due 11/05/14 (Ê)(Ñ) | | 3,000 | | 2,786 |
6.010% due 01/15/15 | | 12,085 | | 12,880 |
4.700% due 05/29/15 | | 350 | | 351 |
5.850% due 08/02/16 (Ñ) | | 150 | | 156 |
6.000% due 08/15/17 (Ñ) | | 6,000 | | 6,212 |
6.125% due 11/21/17 | | 6,395 | | 6,645 |
6.125% due 05/15/18 (Ñ) | | 200 | | 207 |
8.500% due 05/22/19 (Ñ) | | 500 | | 590 |
6.125% due 08/25/36 | | 900 | | 819 |
8.125% due 07/15/39 | | 6,969 | | 8,305 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Columbus Southern Power Co.
Series C
5.500% due 03/01/13 | | 435 | | 472 |
Comcast Cable Communications Holdings, Inc.
9.455% due 11/15/22 | | 975 | | 1,316 |
Comcast Cable Holdings LLC
9.800% due 02/01/12 | | 1,660 | | 1,877 |
Comcast Corp.
5.875% due 02/15/18 (Ñ) | | 300 | | 324 |
5.700% due 05/15/18 | | 4,300 | | 4,620 |
6.500% due 11/15/35 | | 275 | | 290 |
6.450% due 03/15/37 (Ñ) | | 300 | | 314 |
Comcast Holdings Corp.
10.625% due 07/15/12 | | 4,800 | | 5,636 |
Commonwealth Edison Co.
5.800% due 03/15/18 | | 2,970 | | 3,268 |
Series 100
5.875% due 02/01/33 | | 1,275 | | 1,337 |
ConocoPhillips (Ñ)
6.000% due 01/15/20 | | 1,950 | | 2,217 |
Continental Airlines 2001-1
Class A-2 Pass Through Trust (Ñ)
Series 01A2
6.503% due 12/15/12 | | 3,925 | | 4,043 |
Continental Airlines 2007-1
Class A Pass Through Trust
Series 071A
5.983% due 10/19/23 | | 2,161 | | 2,139 |
Continental Airlines 2009-1
Class A Pass Through Trust
9.000% due 07/08/16 | | 3,429 | | 3,772 |
Continental Airlines 2009-2
Class A Pass Through Trust
Series A
7.250% due 11/10/19 | | 2,000 | | 2,140 |
Continental Airlines, Inc.
Series 2002-1 Class G2
6.563% due 08/15/13 | | 2,250 | | 2,267 |
Countrywide Financial Corp.
Series MTN
5.800% due 06/07/12 | | 500 | | 532 |
COX Communications, Inc. (Þ)
6.250% due 06/01/18 | | 2,800 | | 3,057 |
Credit Suisse USA, Inc. (Ñ)
5.500% due 08/15/13 | | 380 | | 418 |
4.875% due 01/15/15 | | 1,200 | | 1,284 |
CSX Corp.
6.250% due 04/01/15 | | 2,635 | | 2,977 |
CVS Caremark Corp.
6.125% due 09/15/39 | | 3,290 | | 3,374 |
DCP Midstream LLC (Þ)
9.750% due 03/15/19 | | 1,350 | | 1,758 |
Delta Air Lines, Inc.
9.500% due 09/15/14 (Þ) | | 5,740 | | 6,077 |
Series 00A1
7.379% due 11/18/11 | | 291 | | 292 |
Series 00A2 (Ñ)
7.570% due 05/18/12 | | 9,445 | | 9,669 |
| | |
| Russell Strategic Bond Fund | | 119 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 01A1
6.619% due 09/18/12 | | 276 | | 279 |
Series 01A2
7.111% due 03/18/13 | | 750 | | 784 |
Series 071A
6.821% due 02/10/24 | | 2,625 | | 2,684 |
Series A (Ñ)
7.750% due 12/17/19 | | 4,000 | | 4,370 |
Developers Diversified Realty Corp.
5.375% due 10/15/12 | | 3,390 | | 3,431 |
7.500% due 04/01/17 | | 2,475 | | 2,571 |
DirecTV Holdings LLC
4.750% due 10/01/14 (Ñ) | | 4,025 | | 4,255 |
5.875% due 10/01/19 | | 2,000 | | 2,124 |
6.350% due 03/15/40 (Ñ)(Þ) | | 975 | | 1,007 |
Discover Bank
Series BKNT
8.700% due 11/18/19 | | 3,225 | | 3,662 |
Discover Financial Services
10.250% due 07/15/19 | | 3,675 | | 4,505 |
DISH DBS Corp.
7.125% due 02/01/16 | | 2,000 | | 2,030 |
Dominion Resources, Inc.
Series 06-B
6.300% due 09/30/66 | | 3,370 | | 3,227 |
Dow Chemical Co. (The)
7.600% due 05/15/14 | | 4,100 | | 4,761 |
5.900% due 02/15/15 | | 1,750 | | 1,919 |
DPL, Inc.
6.875% due 09/01/11 | | 2,116 | | 2,258 |
Dynegy Roseton / Danskammer Pass Through Trust Series B
Series B
7.670% due 11/08/16 | | 7,845 | | 7,417 |
E*Trade Financial Corp.
12.500% due 11/30/17 | | 1,166 | | 1,394 |
Edison Mission Energy (Ñ)
7.000% due 05/15/17 | | 8,070 | | 5,881 |
El Paso Corp.
12.000% due 12/12/13 | | 635 | | 756 |
8.250% due 02/15/16 | | 830 | | 901 |
Series *(Ñ)
9.625% due 05/15/12 | | 300 | | 324 |
Series GMTN (Ñ)
8.050% due 10/15/30 | | 300 | | 304 |
El Paso Natural Gas Co.
7.500% due 11/15/26 | | 1,425 | | 1,594 |
El Paso Pipeline Partners
Operating Co. LLC (Ñ)
6.500% due 04/01/20 | | 7,005 | | 7,231 |
Energy Future Holdings Corp. (Ñ)
10.875% due 11/01/17 | | 2,125 | | 1,673 |
Energy Transfer Partners, LP
5.950% due 02/01/15 | | 3,050 | | 3,347 |
9.700% due 03/15/19 | | 1,150 | | 1,486 |
Enterprise Products Operating LLC
5.900% due 04/15/13 | | 1,425 | | 1,553 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
6.650% due 04/15/18 | | 3,625 | | 4,130 |
5.250% due 01/31/20 (Ñ) | | 2,445 | | 2,518 |
6.125% due 10/15/39 | | 2,460 | | 2,516 |
Series A
8.375% due 08/01/66 | | 1,550 | | 1,612 |
Series B
7.034% due 01/15/68 | | 3,460 | | 3,343 |
Express Scripts, Inc.
6.250% due 06/15/14 | | 2,935 | | 3,292 |
Farmers Exchange Capital (Þ)
7.050% due 07/15/28 | | 5,925 | | 5,589 |
Farmers Insurance Exchange (Þ)
6.000% due 08/01/14 | | 1,725 | | 1,750 |
First Chicago NBD Institutional Capital I (Ê)
0.878% due 02/01/27 | | 1,250 | | 977 |
First Data Corp. (Ñ)
10.550% due 09/24/15 | | 2,632 | | 2,329 |
First Niagara Financial Group, Inc.
6.750% due 03/19/20 | | 1,850 | | 1,905 |
First Union Institutional Capital II
7.850% due 01/01/27 | | 2,320 | | 2,313 |
FirstEnergy Corp.
Series B
6.450% due 11/15/11 | | 187 | | 198 |
Ford Motor Co.
7.125% due 11/15/25 | | 100 | | 87 |
6.375% due 02/01/29 | | 100 | | 82 |
Ford Motor Credit Co. LLC
9.875% due 08/10/11 | | 4,440 | | 4,699 |
3.048% due 01/13/12 (Ê)(Ñ) | | 1,000 | | 971 |
7.500% due 08/01/12 | | 2,025 | | 2,093 |
8.125% due 01/15/20 | | 1,570 | | 1,663 |
Fortune Brands, Inc. (Ñ)
3.000% due 06/01/12 | | 4,880 | | 4,927 |
FPL Energy Wind Funding LLC (Þ)
6.876% due 06/27/17 | | 3,428 | | 3,359 |
Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/17 | | 6,800 | | 7,624 |
Freescale Semiconductor, Inc. (Å)
9.250% due 04/15/18 | | 3,250 | | 3,380 |
General Electric Capital Corp.
2.800% due 01/08/13 | | 1,975 | | 2,008 |
1.151% due 05/22/13 (Ê)(Ñ) | | 3,740 | | 3,724 |
5.900% due 05/13/14 (Ñ) | | 5,000 | | 5,536 |
0.495% due 01/08/16 (Ê)(Ñ) | | 1,200 | | 1,100 |
5.875% due 01/14/38 (Ñ) | | 4,155 | | 4,107 |
6.375% due 11/15/67 (Ñ) | | 27,500 | | 26,331 |
Series EMTN (Ê)
0.381% due 03/20/14 | | 2,000 | | 1,891 |
Series GMTN
2.000% due 09/28/12 | | 10,900 | | 11,078 |
2.625% due 12/28/12 | | 14,000 | | 14,420 |
Series MTNA (Ê)
0.517% due 09/15/14 | | 7,000 | | 6,763 |
General Electric Co.
5.250% due 12/06/17 | | 3,940 | | 4,191 |
GlaxoSmithKline Capital, Inc.
4.850% due 05/15/13 | | 6,900 | | 7,510 |
| | |
| 120 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
GMAC, Inc.
6.875% due 09/15/11 | | 7,600 | | 7,725 |
6.875% due 08/28/12 (Ñ) | | 1,900 | | 1,933 |
7.500% due 12/31/13 | | 10,500 | | 10,684 |
8.300% due 02/12/15 (Þ) | | 2,260 | | 2,359 |
6.875% due 09/15/11 (Å) | | 1,315 | | 1,338 |
8.000% due 11/01/31 | | 2,157 | | 2,103 |
Goldman Sachs Group, Inc. (The)
1.080% due 12/05/11 (Ê) | | 12,230 | | 12,388 |
0.429% due 02/06/12 (Ê)(Ñ) | | 1,700 | | 1,675 |
6.000% due 05/01/14 (Ñ) | | 2,000 | | 2,151 |
5.125% due 01/15/15 | | 4,403 | | 4,548 |
0.721% due 03/22/16 (Ê) | | 1,300 | | 1,197 |
5.625% due 01/15/17 | | 8,031 | | 7,929 |
6.250% due 09/01/17 (Ñ) | | 7,900 | | 8,269 |
7.500% due 02/15/19 | | 7,230 | | 8,028 |
5.375% due 03/15/20 | | 3,215 | | 3,123 |
6.750% due 10/01/37 | | 11,025 | | 10,690 |
Goodyear Tire & Rubber Co. (The) (Ñ)
9.000% due 07/01/15 | | 750 | | 784 |
Hanger Orthopedic Group, Inc.
10.250% due 06/01/14 | | 2,050 | | 2,158 |
Hartford Financial Services Group, Inc.
6.625% due 03/30/40 | | 1,725 | | 1,691 |
Hasbro, Inc.
6.125% due 05/15/14 | | 2,225 | | 2,470 |
6.300% due 09/15/17 | | 1,330 | | 1,441 |
6.350% due 03/15/40 | | 2,695 | | 2,775 |
HCA, Inc.
8.500% due 04/15/19 (Þ) | | 3,480 | | 3,824 |
7.875% due 02/15/20 (Þ) | | 1,375 | | 1,480 |
7.250% due 09/15/20 (Þ) | | 4,065 | | 4,268 |
Series WI
9.125% due 11/15/14 | | 1,750 | | 1,862 |
HCP, Inc.
5.950% due 09/15/11 | | 6,845 | | 7,177 |
Health Net, Inc.
6.375% due 06/01/17 | | 1,775 | | 1,651 |
Healthsouth Corp. (Ñ)
10.750% due 06/15/16 | | 2,705 | | 2,948 |
Historic TW, Inc.
8.050% due 01/15/16 | | 2,900 | | 3,445 |
HRPT Properties Trust
5.750% due 02/15/14 | | 2,710 | | 2,790 |
HUB International Holdings, Inc. (Þ)
10.250% due 06/15/15 | | 6,180 | | 6,025 |
Humana, Inc.
8.150% due 06/15/38 | | 3,226 | | 3,450 |
Indiantown Cogeneration, LP
Series A-10
9.770% due 12/15/20 | | 2,890 | | 3,165 |
International Business Machines Corp.
5.700% due 09/14/17 | | 600 | | 676 |
International Lease Finance Corp. (Ñ)
5.750% due 06/15/11 | | 6,630 | | 6,616 |
International Paper Co.
7.950% due 06/15/18 | | 5,250 | | 6,230 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Jabil Circuit, Inc.
7.750% due 07/15/16 | | 2,360 | | 2,502 |
Jersey Central Power & Light Co.
5.625% due 05/01/16 | | 1,515 | | 1,646 |
JPMorgan Chase & Co.
5.600% due 06/01/11 | | 235 | | 245 |
0.902% due 02/26/13 (Ê) | | 6,235 | | 6,252 |
5.375% due 01/15/14 (Ñ) | | 2,565 | | 2,784 |
5.150% due 10/01/15 | | 3,950 | | 4,220 |
6.000% due 01/15/18 | | 9,100 | | 9,812 |
6.300% due 04/23/19 | | 3,050 | | 3,385 |
4.950% due 03/25/20 (Ñ) | | 1,720 | | 1,723 |
Series 1 (Æ)(ƒ)
7.900% due 04/29/49 | | 8,735 | | 9,174 |
JPMorgan Chase Bank NA
Series AI (Þ)
5.875% due 06/13/16 | | 240 | | 259 |
Series BKNT
6.000% due 10/01/17 | | 6,400 | | 6,868 |
JPMorgan Chase Capital XIII (Ê)
Series M
1.239% due 09/30/34 | | 6,050 | | 4,735 |
JPMorgan Chase Capital XX (Ñ)
Series T
6.550% due 09/29/36 | | 300 | | 286 |
JPMorgan Chase Capital XXI (Ê)(Ñ)
Series U
1.294% due 01/15/87 | | 455 | | 354 |
JPMorgan Chase Capital XXII
Series V
6.450% due 02/02/37 | | 1,100 | | 1,038 |
JPMorgan Chase Capital XXIII (Ê)
1.436% due 05/15/77 | | 8,880 | | 6,896 |
Kansas City Southern Railway (Ñ)
13.000% due 12/15/13 | | 1,500 | | 1,793 |
KCP&L Greater Missouri Operations Co.
11.875% due 07/01/12 | | 7,475 | | 8,776 |
Kraft Foods, Inc.
2.625% due 05/08/13 (Ñ) | | 3,630 | | 3,711 |
6.125% due 02/01/18 (Ñ) | | 1,000 | | 1,105 |
6.125% due 08/23/18 | | 2,550 | | 2,814 |
5.375% due 02/10/20 | | 8,650 | | 8,972 |
6.500% due 02/09/40 (Ñ) | | 5,400 | | 5,811 |
Kroger Co. (The)(Ñ)
3.900% due 10/01/15 | | 2,295 | | 2,344 |
L-3 Communications Corp.
Series B
6.375% due 10/15/15 | | 1,750 | | 1,792 |
LBI Escrow Corp. (Þ)
8.000% due 11/01/17 | | 2,065 | | 2,140 |
Lehman Brothers Holdings, Inc. (Ø)
3.005% due 07/18/11 | | 900 | | 195 |
6.625% due 01/18/12 | | 770 | | 169 |
6.200% due 09/26/14 | | 1,000 | | 220 |
6.875% due 05/02/18 | | 1,365 | | 304 |
7.000% due 09/27/27 | | 1,260 | | 277 |
Liberty Mutual Group, Inc. (Þ)
7.800% due 03/15/37 (Ñ) | | 8,835 | | 8,172 |
7.000% due 03/07/67 | | 7,230 | | 6,408 |
| | |
| Russell Strategic Bond Fund | | 121 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Lincoln National Corp.
6.200% due 12/15/11 | | 285 | | 303 |
Lubrizol Corp.
8.875% due 02/01/19 | | 4,500 | | 5,627 |
MacDermid, Inc. (Þ)
9.500% due 04/15/17 | | 3,120 | | 3,221 |
Manufacturers & Traders Trust Co.
5.585% due 12/28/20 | | 745 | | 696 |
Marathon Oil Corp.
6.500% due 02/15/14 | | 1,475 | | 1,665 |
Max USA Holdings, Ltd. (Þ)
7.200% due 04/14/17 | | 2,485 | | 2,590 |
MBNA Capital B (Ê)
Series B
1.144% due 02/01/27 | | 2,855 | | 2,074 |
MBNA Corp.
6.125% due 03/01/13 | | 2,000 | | 2,159 |
Medco Health Solutions, Inc.
6.125% due 03/15/13 | | 500 | | 549 |
7.250% due 08/15/13 | | 5,857 | | 6,695 |
Merrill Lynch & Co., Inc.
0.516% due 07/25/11 (Ê) | | 1,600 | | 1,591 |
6.050% due 08/15/12 | | 6,800 | | 7,297 |
6.050% due 05/16/16 | | 3,575 | | 3,699 |
6.400% due 08/28/17 | | 2,600 | | 2,729 |
6.875% due 04/25/18 | | 10,780 | | 11,610 |
6.220% due 09/15/26 | | 1,195 | | 1,152 |
7.750% due 05/14/38 | | 1,500 | | 1,651 |
MetLife Capital Trust X (Þ)
9.250% due 04/08/68 | | 1,500 | | 1,755 |
MetLife, Inc.
6.125% due 12/01/11 | | 2,870 | | 3,066 |
6.400% due 12/15/36 | | 500 | | 473 |
Metropolitan Life Global Funding I (Þ)
5.125% due 06/10/14 | | 3,000 | | 3,245 |
MGM Mirage (Þ)
11.125% due 11/15/17 | | 2,375 | | 2,699 |
Mirant Mid Atlantic Pass Through Trust A
Series A
8.625% due 06/30/12 | | 3,046 | | 3,145 |
Mirant Mid Atlantic Pass Through Trust B
Series B
9.125% due 06/30/17 | | 2,916 | | 3,113 |
Monsanto Co. (Ñ)
5.125% due 04/15/18 | | 5,000 | | 5,348 |
Morgan Stanley
5.375% due 10/15/15 | | 7,000 | | 7,252 |
0.754% due 10/18/16 (Ê) | | 5,505 | | 5,073 |
5.450% due 01/09/17 | | 2,425 | | 2,460 |
6.250% due 08/28/17 | | 1,300 | | 1,347 |
5.950% due 12/28/17 | | 2,350 | | 2,407 |
6.625% due 04/01/18 | | 13,920 | | 14,759 |
5.625% due 09/23/19 | | 3,900 | | 3,846 |
Series GMTN (Ê)
0.595% due 01/09/14 | | 3,950 | | 3,787 |
National City Bank (Ê)
Series BKNT
0.622% due 06/07/17 | | 7,200 | | 6,422 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Nationwide Financial Services
6.250% due 11/15/11 | | 660 | | 699 |
Nationwide Mutual Insurance Co. (Þ)
7.875% due 04/01/33 | | 2,207 | | 2,277 |
5.810% due 12/15/24 | | 7,970 | | 7,391 |
Navistar International Corp. (Ñ)
8.250% due 11/01/21 | | 2,295 | | 2,421 |
NB Capital Trust IV
8.250% due 04/15/27 | | 2,521 | | 2,540 |
NBC Universal, Inc. (Å)
3.650% due 04/30/15 | | 4,805 | | 4,851 |
5.150% due 04/30/20 | | 9,890 | | 10,005 |
6.400% due 04/30/40 | | 3,285 | | 3,392 |
News America Holdings, Inc.
9.250% due 02/01/13 | | 25 | | 29 |
7.900% due 12/01/95 | | 715 | | 833 |
8.250% due 10/17/96 | | 240 | | 270 |
NII Capital Corp. (Þ)
10.000% due 08/15/16 | | 5,775 | | 6,410 |
Nisource Finance Corp.
10.750% due 03/15/16 | | 1,325 | | 1,710 |
6.400% due 03/15/18 | | 2,180 | | 2,383 |
NuStar Logistics, LP
6.050% due 03/15/13 | | 3,607 | | 3,881 |
Ohio Power Co. Series F
5.500% due 02/15/13 | | 285 | | 311 |
OMX Timber Finance Investments I LLC (Å)
5.420% due 01/29/20 | | 7,200 | | 7,083 |
Oncor Electric Delivery Co. LLC (Ñ)
6.800% due 09/01/18 | | 4,750 | | 5,462 |
Pacific Gas & Electric Co.
6.250% due 12/01/13 | | 1,375 | | 1,553 |
Panhandle Eastern Pipeline Co., LP
8.125% due 06/01/19 | | 3,542 | | 4,196 |
Peabody Energy Corp.
7.875% due 11/01/26 | | 500 | | 528 |
Pemex Project Funding Master Trust
6.625% due 06/15/38 | | 3,825 | | 3,731 |
Philip Morris International, Inc.
6.875% due 03/17/14 | | 1,980 | | 2,287 |
5.650% due 05/16/18 (Ñ) | | 3,840 | | 4,200 |
4.500% due 03/26/20 | | 4,950 | | 4,880 |
PNC Bank NA (Ñ)
Series BKNT
6.875% due 04/01/18 | | 2,400 | | 2,675 |
Princeton University
4.950% due 03/01/19 | | 1,160 | | 1,242 |
Principal Life Income Funding Trusts
5.300% due 04/24/13 | | 400 | | 430 |
Progress Energy, Inc.
7.050% due 03/15/19 | | 2,550 | | 2,938 |
7.750% due 03/01/31 | | 275 | | 336 |
ProLogis
1.875% due 11/15/37 | | 2,550 | | 2,362 |
Prudential Financial, Inc.
3.875% due 01/14/15 | | 5,675 | | 5,758 |
| | |
| 122 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Prudential Holdings LLC
8.695% due 12/18/23 (Þ) | | 5,600 | | 6,566 |
Series FSA (Ê)(Þ) 1.129% due 12/18/17 | | 3,500 | | 2,969 |
Public Service Co. of New Mexico
7.950% due 05/15/18 | | 3,320 | | 3,542 |
Puget Sound Energy, Inc.
Series A
6.974% due 06/01/67 | | 1,500 | | 1,426 |
QVC, Inc. (Þ)
7.375% due 10/15/20 | | 4,730 | | 4,801 |
Qwest Corp.
7.875% due 09/01/11 (Ñ) | | 6,750 | | 7,163 |
7.625% due 06/15/15 | | 1,000 | | 1,103 |
8.375% due 05/01/16 | | 4,775 | | 5,443 |
Rainbow National Services LLC (Þ)
8.750% due 09/01/12 | | 2,115 | | 2,144 |
Reed Elsevier Capital, Inc.(Ñ)
7.750% due 01/15/14 | | 3,140 | | 3,634 |
Reliant Energy Mid-Atlantic Power Holdings LLC
Series B
9.237% due 07/02/17 | | 3,663 | | 3,792 |
Rensselaer Polytechnic Institute
5.600% due 09/01/20 | | 4,675 | | 4,808 |
Rockies Express Pipeline LLC (Þ)
3.900% due 04/15/15 | | 3,600 | | 3,577 |
Rohm and Haas Co. (Ñ)
6.000% due 09/15/17 | | 100 | | 108 |
Roper Industries, Inc. (Ñ)
6.250% due 09/01/19 | | 1,245 | | 1,335 |
Sabine Pass LNG, LP
7.250% due 11/30/13 | | 8,590 | | 8,257 |
SBA Tower Trust (Þ)
4.254% due 04/15/40 | | 3,815 | | 3,915 |
Sealy Mattress Co. (Ñ)(Þ)
10.875% due 04/15/16 | | 225 | | 257 |
Simon Property Group, LP
5.300% due 05/30/13 | | 3,720 | | 3,989 |
6.100% due 05/01/16 (Ñ) | | 1,955 | | 2,108 |
10.350% due 04/01/19 | | 1,250 | | 1,620 |
5.650% due 02/01/20 (Ñ) | | 2,800 | | 2,884 |
SLM Corp.
5.400% due 10/25/11 | | 1,450 | | 1,481 |
5.125% due 08/27/12 | | 1,150 | | 1,160 |
South Carolina Electric & Gas Co.
6.500% due 11/01/18 | | 1,240 | | 1,426 |
Southern Copper Corp.
6.375% due 07/27/15 | | 1,780 | | 1,964 |
7.500% due 07/27/35 | | 4,165 | | 4,456 |
6.750% due 04/16/40 | | 1,435 | | 1,448 |
Southern Union Co.
7.200% due 11/01/66 | | 8,940 | | 8,359 |
Sprint Capital Corp.
8.375% due 03/15/12 | | 1,250 | | 1,319 |
6.875% due 11/15/28 | | 960 | | 835 |
8.750% due 03/15/32 | | 1,670 | | 1,670 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Staples, Inc. (Ñ)
9.750% due 01/15/14 | | 3,695 | | 4,526 |
Symetra Financial Corp.
6.125% due 04/01/16 (Å) | | 1,200 | | 1,219 |
8.300% due 10/15/67 (Þ) | | 3,430 | | 3,241 |
TD Ameritrade Holding Corp. (Ñ)
4.150% due 12/01/14 | | 4,375 | | 4,468 |
Tennessee Gas Pipeline Co.
8.000% due 02/01/16 | | 3,305 | | 3,780 |
7.500% due 04/01/17 | | 1,350 | | 1,545 |
8.375% due 06/15/32 | | 1,250 | | 1,518 |
Texas Competitive Electric Holdings Co. LLC (Ñ)
10.500% due 11/01/16 | | 5,492 | | 4,010 |
Textron, Inc.
6.200% due 03/15/15 | | 3,235 | | 3,467 |
Thermo Fisher Scientific, Inc.
3.200% due 05/01/15 | | 2,070 | | 2,082 |
Time Warner Cable, Inc.
8.250% due 02/14/14 | | 1,560 | | 1,842 |
6.750% due 07/01/18 | | 2,590 | | 2,936 |
Time Warner Entertainment Co., LP
Series *
8.375% due 03/15/23 | | 1,176 | | 1,476 |
Time Warner, Inc.
5.500% due 11/15/11 | | 850 | | 901 |
4.875% due 03/15/20 | | 4,350 | | 4,311 |
Timken Co.
6.000% due 09/15/14 | | 2,440 | | 2,624 |
Transatlantic Holdings, Inc.
8.000% due 11/30/39 | | 2,350 | | 2,466 |
UAL 2009-1 Pass Through Trust
10.400% due 05/01/18 | | 600 | | 651 |
UBS Preferred Funding Trust V (ƒ)
Series 1
6.243% due 05/29/49 | | 3,600 | | 3,312 |
Union Electric Co.
6.400% due 06/15/17 | | 3,145 | | 3,493 |
UnitedHealth Group, Inc.
4.875% due 02/15/13 (Ñ) | | 400 | | 429 |
6.000% due 06/15/17 | | 56 | | 60 |
Series WI
6.500% due 06/15/37 | | 675 | | 713 |
USB Capital IX (ƒ)
6.189% due 10/29/49 | | 300 | | 261 |
USB Realty Corp. (ƒ)(Þ)
6.091% due 12/29/49 | | 4,225 | | 3,560 |
Valero Energy Corp.
9.375% due 03/15/19 (Ñ) | | 4,185 | | 5,134 |
10.500% due 03/15/39 | | 1,160 | | 1,572 |
Verizon Communications, Inc.
5.250% due 04/15/13 | | 300 | | 328 |
8.750% due 11/01/18 | | 5,440 | | 6,876 |
8.950% due 03/01/39 | | 1,370 | | 1,890 |
Viacom, Inc.
6.250% due 04/30/16 | | 5,150 | | 5,779 |
| | |
| Russell Strategic Bond Fund | | 123 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Wachovia Bank NA
Series BKNT
6.600% due 01/15/38 | | 3,200 | | 3,424 |
Wachovia Capital Trust III (ƒ)
5.800% due 03/29/49 | | 6,925 | | 5,990 |
Wachovia Corp.
0.433% due 10/15/11 (Ê) | | 3,800 | | 3,787 |
5.500% due 05/01/13 | | 3,150 | | 3,425 |
5.625% due 10/15/16 | | 100 | | 107 |
5.750% due 02/01/18 (Ñ) | | 1,200 | | 1,292 |
Waste Management, Inc. (Ñ)
6.375% due 03/11/15 | | 1,185 | | 1,342 |
WCI Finance LLC / WEA Finance
LLC (Þ)
5.400% due 10/01/12 | | 1,103 | | 1,179 |
WEA Finance LLC / WT Finance Aust Pty, Ltd. (Þ)
7.500% due 06/02/14 | | 3,870 | | 4,410 |
6.750% due 09/02/19 | | 1,300 | | 1,456 |
Wells Fargo & Co.
5.625% due 12/11/17 (Ñ) | | 2,770 | | 2,983 |
Series K (ƒ)
7.980% due 03/29/49 | | 20,000 | | 21,100 |
Wells Fargo Capital XV (ƒ)(Ñ)
9.750% due 12/31/49 | | 3,585 | | 4,015 |
Whirlpool Corp.
8.600% due 05/01/14 | | 1,125 | | 1,317 |
Williams Cos., Inc. (The)
7.875% due 09/01/21 | | 4,483 | | 5,366 |
7.750% due 06/15/31 | | 1,340 | | 1,543 |
Williams Partners, LP (Þ)
3.800% due 02/15/15 (Ñ) | | 3,335 | | 3,354 |
5.250% due 03/15/20 | | 5,380 | | 5,534 |
Windstream Corp.
Series WI
8.625% due 08/01/16 | | 500 | | 512 |
WMG Acquisition Corp.
7.375% due 04/15/14 | | 1,575 | | 1,520 |
9.500% due 06/15/16 (Þ) | | 675 | | 729 |
XTO Energy, Inc. (Ñ)
6.500% due 12/15/18 | | 1,850 | | 2,174 |
Yum! Brands, Inc.
4.250% due 09/15/15 | | 2,500 | | 2,600 |
ZFS Finance USA Trust I (Þ)
5.875% due 05/09/32 | | 1,983 | | 1,895 |
6.500% due 05/09/67 | | 1,910 | | 1,829 |
6.150% due 12/15/65 | | 5,475 | | 5,256 |
ZFS Finance USA Trust II (Þ)
6.450% due 12/15/65 | | 4,205 | | 4,058 |
| | | | |
| | | | 1,404,965 |
| | | | |
| International Debt - 9.5% | | | | |
Achmea Hypotheekbank NV (Þ)
3.200% due 11/03/14 | | 13,600 | | 13,863 |
America Movil SAB de CV (Þ)
3.625% due 03/30/15 | | 5,640 | | 5,699 |
6.125% due 03/30/40 | | 4,800 | | 4,752 |
Anglo American Capital PLC (Þ)
9.375% due 04/08/14 | | 1,075 | | 1,304 |
9.375% due 04/08/19 | | 1,400 | | 1,823 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
ANZ National International, Ltd. (Þ)
6.200% due 07/19/13 | | 5,000 | | 5,513 |
Arab Republic of Egypt (Ñ)(Þ)
6.875% due 04/30/40 | | 3,895 | | 3,924 |
ArcelorMittal (Ñ)
9.000% due 02/15/15 | | 2,150 | | 2,586 |
9.850% due 06/01/19 | | 2,110 | | 2,748 |
6.125% due 06/01/18 | | 3,425 | | 3,692 |
Argentina Government International
Bond (Ê) Zero coupon due 12/15/35 | | 23,820 | | 1,846 |
AstraZeneca PLC
5.900% due 09/15/17 (Ñ) | | 1,100 | | 1,246 |
6.450% due 09/15/37 | | 900 | | 1,032 |
Bakrie Telecom
11.500% due 05/07/15 | | 4,030 | | 4,030 |
Banco Santander Brasil SA (Å)
4.500% due 04/06/15 | | 6,075 | | 6,015 |
Bank of China Hong Kong, Ltd. (Ñ)(Þ)
5.500% due 02/11/20 | | 600 | | 603 |
Barclays Bank PLC
5.450% due 09/12/12 (Ñ) | | 19,100 | | 20,590 |
6.050% due 12/04/17 (Þ) | | 2,700 | | 2,814 |
6.750% due 05/22/19 | | 5,500 | | 6,175 |
7.375% due 06/29/49 (ƒ)(Þ) | | 3,075 | | 2,967 |
BAT International Finance PLC (Þ)
9.500% due 11/15/18 | | 2,100 | | 2,770 |
BBVA Bancomer SA (Ñ)(Å)
7.250% due 04/22/20 | | 4,225 | | 4,287 |
Black Diamond CLO, Ltd. (Ê)(Å)
Series 2007-1A Class AD
0.578% due 04/29/19 | | 23,250 | | 21,427 |
BNP Paribas (ƒ)(Þ)
5.186% due 06/29/49 | | 600 | | 552 |
BRFkredit AS (Å)
2.050% due 04/15/13 | | 16,500 | | 16,594 |
British Telecommunications PLC
9.625% due 12/15/30 | | 1,660 | | 2,136 |
C10 Capital SPV, Ltd. (ƒ)(Þ)
6.722% due 12/31/49 | | 1,800 | | 1,316 |
CDP Financial, Inc. (Þ)
5.600% due 11/25/39 | | 6,700 | | 6,818 |
Cenovus Energy, Inc. (Þ)
4.500% due 09/15/14 | | 1,520 | | 1,600 |
Cie de Financement Foncier (Å)
2.125% due 04/22/13 | | 7,500 | | 7,551 |
Commonwealth Bank of Australia (Ñ)(Þ)
2.500% due 12/10/12 | | 6,800 | | 6,943 |
Corp. Andina de Fomento
8.125% due 06/04/19 | | 3,730 | | 4,466 |
Corp. Nacional del Cobre de Chile (Þ)
7.500% due 01/15/19 | | 6,657 | | 7,968 |
6.150% due 10/24/36 | | 100 | | 105 |
Covidien International Finance SA (Ñ)
5.450% due 10/15/12 | | 795 | | 868 |
6.000% due 10/15/17 | | 1,915 | | 2,123 |
Credit Agricole SA (ƒ)(Þ)
8.375% due 10/29/49 | | 1,650 | | 1,724 |
| | |
| 124 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Credit Suisse AG
5.400% due 01/14/20 | | 3,555 | | 3,619 |
Credit Suisse Guernsey, Ltd. (Ê)(ƒ)
Series 1
1.126% due 05/29/49 | | 3,595 | | 2,823 |
Credit Suisse NY
5.000% due 05/15/13 | | 4,700 | | 5,058 |
5.500% due 05/01/14 | | 3,000 | | 3,287 |
6.000% due 02/15/18 | | 1,380 | | 1,475 |
5.300% due 08/13/19 | | 640 | | 670 |
Deutsche Bank AG (Ñ)
6.000% due 09/01/17 | | 5,800 | | 6,416 |
Dexia Credit Local
0.928% due 09/23/11 (Ê)(Þ) | | 3,000 | | 3,020 |
2.750% due 01/10/14 (Þ) | | 7,200 | | 7,326 |
0.808% due 04/29/14 (Ê)(Å) | | 5,300 | | 5,293 |
Digicel Group, Ltd. (Ñ)(Þ)
9.125% due 01/15/15 | | 6,157 | | 6,219 |
10.500% due 04/15/18 | | 3,198 | | 3,438 |
Dolphin Energy, Ltd. (Þ)
5.888% due 06/15/19 | | 1,980 | | 2,037 |
DP World, Ltd. (Þ)
6.850% due 07/02/37 | | 4,075 | | 3,370 |
DTEK Finance BV (Ñ)(Å)
9.500% due 04/28/15 | | 3,505 | | 3,505 |
Electricite De France (Þ)
5.500% due 01/26/14 (Ñ) | | 1,700 | | 1,881 |
6.500% due 01/26/19 | | 1,700 | | 1,928 |
6.950% due 01/26/39 | | 1,700 | | 2,004 |
Endurance Specialty Holdings, Ltd.
6.150% due 10/15/15 | | 525 | | 559 |
7.000% due 07/15/34 | | 425 | | 407 |
Enel Finance International SA (Þ)
3.875% due 10/07/14 | | 4,850 | | 4,956 |
6.250% due 09/15/17 | | 1,500 | | 1,610 |
5.125% due 10/07/19 | | 6,855 | | 6,736 |
Export-Import Bank of China (Þ)
4.875% due 07/21/15 | | 300 | | 321 |
FIH Erhvervsbank A/S (Å)
1.750% due 12/06/12 | | 7,600 | | 7,624 |
France Telecom SA (Ñ)
4.375% due 07/08/14 | | 1,840 | | 1,967 |
Galaxy Entertainment Finance Co.,
Ltd. (Þ)
9.875% due 12/15/12 | | 5,610 | | 5,887 |
Gaz Capital SA for Gazprom
7.343% due 04/11/13 (Þ) | | 600 | | 643 |
6.212% due 11/22/16 (Þ) | | 7,730 | | 7,778 |
8.146% due 04/11/18 (Þ) | | 2,600 | | 2,889 |
Series REGS
8.625% due 04/28/34 | | 17,900 | | 21,124 |
Government of the Cayman Islands (Þ)
5.950% due 11/24/19 | | 1,030 | | 1,035 |
HBOS PLC (Þ)
6.750% due 05/21/18 | | 9,920 | | 9,499 |
HSBC Holdings PLC
6.500% due 05/02/36 | | 700 | | 744 |
6.500% due 09/15/37 (Ñ) | | 1,200 | | 1,272 |
6.800% due 06/01/38 | | 1,375 | | 1,502 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Israel Government AID Bond
5.500% due 09/18/33 | | 6,000 | | 6,472 |
JPMorgan Chase Bank
10.000% due 07/17/17 | | 30,887,000 | | 3,707 |
11.000% due 11/17/20 | | 32,483,000 | | 4,179 |
Kansas City Southern de Mexico SA de CV
12.500% due 04/01/16 | | 2,800 | | 3,311 |
8.000% due 02/01/18 (Þ) | | 1,800 | | 1,877 |
KazMunaiGaz Finance Sub BV (Å)
7.000% due 05/05/20 | | 2,070 | | 2,050 |
Kommunalbanken AS
2.000% due 01/14/13 | | 3,500 | | 3,539 |
Korea Electric Power Corp. (Þ)
5.125% due 04/23/34 | | 485 | | 516 |
Landwirtschaftliche Rentenbank
5.250% due 07/02/12 | | 10,700 | | 11,595 |
1.875% due 09/24/12 | | 13,500 | | 13,641 |
LBG Capital No. 1 PLC (ƒ)
8.500% due 12/29/49 | | 300 | | 258 |
LeasePlan Corp. NV (Þ)
3.000% due 05/07/12 | | 7,500 | | 7,748 |
Lloyds TSB Bank PLC (Þ)
4.375% due 01/12/15 | | 3,075 | | 3,053 |
12.000% due 12/29/49 (ƒ) | | 8,700 | | 10,064 |
Macquarie Bank, Ltd. (Þ)
3.300% due 07/17/14 | | 16,100 | | 16,616 |
MHP SA (Å)
10.250% due 04/29/15 | | 2,030 | | 1,989 |
Montpelier Re Holdings, Ltd.
6.125% due 08/15/13 | | 5,725 | | 5,924 |
Morgan Stanley (Ê)
0.988% due 03/01/13 | | 2,100 | | 2,662 |
MUFG Capital Finance 1, Ltd. (ƒ)
6.346% due 07/29/49 | | 4,050 | | 4,024 |
National Australia Bank, Ltd. (Ñ)(Þ)
5.350% due 06/12/13 | | 6,725 | | 7,317 |
Nationwide Building Society (Ñ)(Þ)
6.250% due 02/25/20 | | 2,600 | | 2,714 |
Norske Skogindustrier ASA (Þ)
6.125% due 10/15/15 | | 2,525 | | 1,649 |
7.125% due 10/15/33 | | 4,645 | | 2,915 |
North American Development Bank
4.375% due 02/11/20 | | 7,100 | | 7,110 |
PE Paper Escrow GmbH (Ñ)(Þ)
12.000% due 08/01/14 | | 1,200 | | 1,368 |
Peruvian Government International Bond
7.125% due 03/30/19 | | 2,500 | | 2,940 |
Petro-Canada (Ñ)
6.050% due 05/15/18 | | 1,350 | | 1,489 |
Petroleos Mexicanos
8.000% due 05/03/19 | | 4,400 | | 5,170 |
Petroleum Export, Ltd. (Þ)
5.265% due 06/15/11 | | 119 | | 118 |
Polo Ralph Lauren Corp.
4.500% due 10/04/13 | | 2,050 | | 2,820 |
Province of Ontario Canada
4.100% due 06/16/14 | | 6,000 | | 6,364 |
| | |
| Russell Strategic Bond Fund | | 125 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Qatar Government International Bond (Þ)
5.250% due 01/20/20 | | 9,850 | | 10,195 |
6.400% due 01/20/40 | | 4,260 | | 4,462 |
Rabobank Nederland NV (ƒ)(Þ)
11.000% due 06/29/49 | | 3,067 | | 3,946 |
Ras Laffan Liquefied Natural Gas Co., Ltd. II (Þ)
5.298% due 09/30/20 | | 5,035 | | 5,242 |
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Þ)
5.838% due 09/30/27 | | 300 | | 306 |
Reliance Industries, Ltd. (Þ)
10.250% due 01/15/97 | | 1,000 | | 1,010 |
Resona Bank, Ltd. (ƒ)(Þ)
5.850% due 09/29/49 | | 4,805 | | 4,776 |
Rio Tinto Finance USA, Ltd. (Ñ)
5.875% due 07/15/13 | | 7,485 | | 8,270 |
Royal Bank of Scotland PLC (The)
3.000% due 12/09/11 (Ñ)(Þ) | | 24,800 | | 25,496 |
2.625% due 05/11/12 (Þ) | | 6,070 | | 6,208 |
4.875% due 08/25/14 (Ñ)(Þ) | | 4,075 | | 4,169 |
Series 1 (ƒ)(Ñ)
9.118% due 03/31/49 | | 2,300 | | 2,081 |
Russian Foreign Bond—Eurobond (Ñ)(Þ)
3.625% due 04/29/15 | | 4,100 | | 4,003 |
Santander US Debt SA
Unipersonal (Ê)(Þ)
1.089% due 03/30/12 | | 11,200 | | 11,199 |
Shell International Finance BV
4.375% due 03/25/20 | | 5,865 | | 5,928 |
Sigma Alimentos SA (Þ)
6.875% due 12/16/19 | | 520 | | 534 |
Societe Financement de l’Economie Francaise (Ê)(Þ)
0.504% due 07/16/12 | | 2,000 | | 2,007 |
Standard Chartered PLC (Þ)
5.500% due 11/18/14 | | 500 | | 542 |
State of Qatar
5.150% due 04/09/14 | | 610 | | 654 |
Suncor Energy, Inc.
6.100% due 06/01/18 (Ñ) | | 1,500 | | 1,655 |
5.950% due 12/01/34 | | 1,920 | | 1,938 |
Swedbank AB (Ñ)(Þ)
2.900% due 01/14/13 | | 5,000 | | 5,138 |
Swedish Housing Finance Corp. (Þ)
3.125% due 03/23/12 | | 9,600 | | 9,911 |
Systems 2001 AT LLC (Þ)
7.156% due 12/15/11 | | 241 | | 253 |
Teck Resources, Ltd.
10.750% due 05/15/19 | | 2,825 | | 3,517 |
Telecom Italia Capital SA
0.914% due 07/18/11 (Ê) | | 1,600 | | 1,592 |
6.200% due 07/18/11 | | 1,810 | | 1,897 |
6.999% due 06/04/18 (Ñ) | | 1,865 | | 2,019 |
7.721% due 06/04/38 | | 2,845 | | 3,048 |
Telefonica Emisiones SAU
5.984% due 06/20/11 | | 1,335 | | 1,405 |
2.582% due 04/26/13 | | 3,335 | | 3,344 |
6.421% due 06/20/16 | | 6,140 | | 6,855 |
5.134% due 04/27/20 | | 3,025 | | 3,028 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Temasek Financial I, Ltd. (Þ)
4.300% due 10/25/19 | | 1,200 | | 1,205 |
TNK-BP Finance SA
6.125% due 03/20/12 (Þ) | | 500 | | 517 |
7.500% due 07/18/16 | | 2,605 | | 2,787 |
TransCanada PipeLines, Ltd.
6.350% due 05/15/67 | | 3,175 | | 3,053 |
TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ)
8.700% due 08/07/18 | | 1,000 | | 1,203 |
Transocean, Inc.
5.250% due 03/15/13 (Ñ) | | 1,930 | | 2,087 |
6.000% due 03/15/18 | | 2,570 | | 2,814 |
Series B
1.500% due 12/15/37 | | 9,325 | | 8,999 |
Tyco Electronics Group SA | | | | |
6.000% due 10/01/12 | | 4,160 | | 4,490 |
6.550% due 10/01/17 | | 4,140 | | 4,639 |
UBS AG 1.352% due 02/23/12 (Ê) | | 2,400 | | 2,415 |
Series DPNT (Ñ)
5.875% due 12/20/17 | | 2,000 | | 2,115 |
5.750% due 04/25/18 | | 300 | | 314 |
UBS Luxembourg SA for OJSC Vimpel Communications Series REGS
8.250% due 05/23/16 | | 300 | | 326 |
Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH (Þ)
8.125% due 12/01/17 | | 2,250 | | 2,295 |
US Bank National Associtaion
4.375% due 02/28/17 | | 1,800 | | 2,410 |
Vale Overseas, Ltd.
6.250% due 01/23/17 (Ñ) | | 200 | | 219 |
6.875% due 11/21/36 | | 200 | | 210 |
6.875% due 11/10/39 | | 3,660 | | 3,840 |
VIP Finance Ireland, Ltd. for OJSC Vimpel Communications Series REGS
9.125% due 04/30/18 | | 1,200 | | 1,380 |
Virgin Media Finance PLC
8.750% due 04/15/14 | | 200 | | 204 |
Volvo Treasury AB (Þ)
5.950% due 04/01/15 | | 3,924 | | 4,063 |
Weatherford International, Ltd. (Ñ)
9.625% due 03/01/19 | | 1,625 | | 2,102 |
9.875% due 03/01/39 | | 620 | | 846 |
Westpac Banking Corp.
1.900% due 12/14/12 (Þ) | | 11,400 | | 11,473 |
4.875% due 11/19/19 (Ñ) | | 5,500 | | 5,585 |
Westpac Securities NZ, Ltd. (Þ)
2.500% due 05/25/12 | | 14,600 | | 14,915 |
White Mountains Re Group, Ltd. (ƒ)(Þ)
7.506% due 05/29/49 | | 8,600 | | 7,901 |
Wind Acquisition Finance SA (Ñ)(Þ)
11.750% due 07/15/17 | | 1,900 | | 2,114 |
WPP Finance UK (Ñ)
8.000% due 09/15/14 | | 3,880 | | 4,480 |
WT Finance Aust Pty, Ltd. / Westfield Capital / WEA Finance LLC (Þ)
5.125% due 11/15/14 | | 925 | | 970 |
| | |
| 126 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
XL Capital, Ltd. (ƒ)
Series E
6.500% due 12/31/49 | | 4,945 | | 4,055 |
Xstrata Canada Corp.
6.000% due 10/15/15 | | 1,050 | | 1,139 |
| | | | |
| | | | 721,384 |
| | | | |
| | |
| Loan Agreements - 0.3% | | | | |
Adam Aircraft Term Loan (Ø)(Å)
15.130% due 05/01/12 | | 760 | | 8 |
AWAS, 2nd Lien Term Loan
6.313% due 03/21/13 | | 703 | | 662 |
Energy Future Holdings Corp., Term
Loan B
3.752% due 10/10/14 | | 4,289 | | 3,487 |
3.790% due 10/10/14 | | 33 | | 27 |
HCA, Inc. Term Loan A (Ê)
1.790% due 11/18/12 | | 5,448 | | 5,283 |
Kelson Holdings, Inc. 1st Lien Term Loan
3.540% due 03/08/13 | | 10,500 | | 10,132 |
Newsday Corp. Fixed Rate Term Loan
10.500% due 07/09/13 | | 2,775 | | 3,023 |
Supermedia, Inc. Exit Term Loan
11.000% due 12/31/15 | | 2,338 | | 2,185 |
| | | | |
| | | | 24,807 |
| | | | |
| |
| Mortgage-Backed Securities - 41.3% | | |
Adjustable Rate Mortgage Trust (Ê)
Series 2005-1 Class 5A2
0.593% due 05/25/35 | | 318 | | 300 |
Series 2005-3 Class 8A2
0.503% due 07/25/35 | | 857 | | 753 |
Alliance Bancorp Trust (Ê)
Series 2007-OA1 Class A1
0.503% due 07/25/37 | | 4,080 | | 2,141 |
ALROSA Finance SA (Þ)
8.875% due 11/17/14 | | 485 | | 524 |
American Home Mortgage Assets (Ê) | | | | |
Series 2006-1 Class 1A3
0.493% due 05/25/46 | | 7,127 | | 1,828 |
Series 2006-2 Class 2A2
0.493% due 09/25/46 | | 7,114 | | 1,415 |
Series 2006-3 Class 1A3
0.583% due 10/25/46 | | 6,160 | | 353 |
Series 2006-4 Class 1A11
0.453% due 10/25/46 | | 10,613 | | 6,027 |
Series 2006-4 Class 2A2
1.611% due 10/25/46 | | 9,417 | | 1,907 |
Series 2006-5 Class A2
1.433% due 11/25/46 | | 7,500 | | 1,628 |
Series 2006-6 Class A1C
0.543% due 12/25/46 | | 1,877 | | 139 |
Series 2007-4 Class A2
0.453% due 08/25/37 | | 12,480 | | 8,633 |
American Home Mortgage Investment Trust | | | | |
Series 2004-1 Class 1A (Ê)
0.613% due 04/25/44 | | 236 | | 171 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2004-4 Class 4A (Ê)
2.387% due 02/25/45 | | 753 | | 685 |
Series 2005-2 Class 1A1 (Ê)
0.563% due 09/25/45 | | 4,822 | | 3,316 |
Series 2005-2 Class 5A3
5.077% due 09/25/35 | | 1,900 | | 1,914 |
Series 2005-4 Class 1A1 (Ê)
0.553% due 11/25/45 | | 888 | | 571 |
Series 2006-1 Class 1A2 (Ê)
0.453% due 03/25/46 | | 8,208 | | 2,417 |
Series 2007-1 Class GA1C (Ê)
0.453% due 05/25/47 | | 6,109 | | 3,672 |
Banc of America Alternative Loan Trust | | | | |
Series 2003-2 Class CB2 (Ê)
0.763% due 04/25/33 | | 481 | | 425 |
Series 2003-10 Class 2A2 (Ê)
0.713% due 12/25/33 | | 1,336 | | 1,195 |
Series 2004-10 Class 1CB1
6.000% due 11/25/34 | | 385 | | 346 |
Series 2004-11 Class 1CB1
6.000% due 12/25/34 | | 458 | | 406 |
Series 2005-3 Class 2A1
5.500% due 04/25/20 | | 482 | | 440 |
Series 2005-5 Class 2CB1
6.000% due 06/25/35 | | 710 | | 545 |
Series 2005-9 Class 5A1
5.500% due 10/25/20 | | 945 | | 928 |
Series 2006-5 Class CB17
6.000% due 06/25/46 | | 2,224 | | 1,605 |
Series 2006-6 Class CB6
6.000% due 06/25/46 | | 1,562 | | 1,307 |
Banc of America Commercial Mortgage, Inc.
Series 2000-2 Class B
7.378% due 09/15/32 | | 305 | | 305 |
Series 2000-2 Class C
7.438% due 09/15/32 | | 100 | | 100 |
Series 2002-PB2 Class A4
6.186% due 06/11/35 | | 6,682 | | 7,072 |
Series 2002-PB2 Class C
6.349% due 06/11/35 | | 100 | | 102 |
Series 2003-1 Class SBB (Þ)
5.860% due 03/11/32 | | 978 | | 1,069 |
Series 2003-1 Class SBC (Þ)
5.790% due 03/11/32 | | 1,003 | | 1,094 |
Series 2003-1 Class SBE (Þ)
6.770% due 03/11/32 | | 301 | | 336 |
Series 2005-2 Class A4
4.783% due 07/10/43 | | 3,780 | | 3,945 |
Series 2005-3 Class A2
4.501% due 07/10/43 | | 1,633 | | 1,645 |
Series 2005-6 Class A4
5.350% due 09/10/47 | | 1,500 | | 1,582 |
Series 2006-1 Class A4
5.372% due 09/10/45 | | 4,225 | | 4,341 |
Series 2006-2 Class A4
5.738% due 05/10/45 | | 20,731 | | 21,746 |
| | |
| Russell Strategic Bond Fund | | 127 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-4 Class A4
5.634% due 07/10/46 | | 5,245 | | 5,399 |
Series 2006-6 Class A4
5.356% due 10/10/45 | | 6,230 | | 6,212 |
Series 2007-2 Class A4
5.867% due 04/10/49 | | 12,458 | | 12,190 |
Series 2007-2 Class AAB
5.639% due 04/10/49 | | 1,905 | | 1,942 |
Series 2008-1 Class A4
6.184% due 02/10/51 | | 6,150 | | 6,296 |
Series 2008-1 Class ASB
6.173% due 02/10/51 | | 20 | | 21 |
Series 2008-1 Class B (Þ)
6.416% due 02/10/51 | | 1,562 | | 619 |
Series 2008-1 Class C (Þ)
6.416% due 02/10/51 | | 1,507 | | 522 |
Banc of America Funding Corp.
Series 2005-5 Class 1A11
5.500% due 09/25/35 | | 649 | | 586 |
Series 2005-D Class A1 (Ê)
2.990% due 05/25/35 | | 1,091 | | 1,073 |
Series 2005-F Class 1A2 (Ê)
0.606% due 09/20/35 | | 326 | | 111 |
Series 2006-3 Class 5A8
5.500% due 03/25/36 | | 4,640 | | 3,563 |
Series 2006-A Class 3A2
5.749% due 02/20/36 | | 1,369 | | 879 |
Series 2006-A Class 4A1 (Ê)
5.534% due 02/20/36 | | 3,807 | | 2,914 |
Series 2006-F Class 1A2 (Ê)
5.156% due 07/20/36 | | 251 | | 124 |
Series 2006-H Class 4A4
6.096% due 09/20/46 | | 1,092 | | 238 |
Series 2006-I Class 5A1 (Ê)
6.063% due 10/20/46 | | 13,549 | | 11,949 |
Series 2006-J Class 4A1
6.031% due 01/20/47 | | 1,063 | | 801 |
Banc of America Mortgage Securities, Inc.
Series 2003-9 Class 1A12 (Ê)
0.713% due 12/25/33 | | 1,078 | | 1,047 |
Series 2004-1 Class 5A1
6.500% due 09/25/33 | | 43 | | 44 |
Series 2004-2 Class 1A9 (Ê)
0.713% due 03/25/34 | | 1,065 | | 998 |
Series 2004-11 Class 2A1
5.750% due 01/25/35 | | 2,381 | | 2,399 |
Series 2004-D Class 1A1 (Ê)
3.629% due 05/25/34 | | 104 | | 98 |
Series 2004-F Class 1A1 (Ê)
4.090% due 07/25/34 | | 1,025 | | 993 |
Series 2004-I Class 2A2 (Ê)
3.677% due 10/25/34 | | 197 | | 186 |
Series 2004-L Class 2A1 (Ê)
3.307% due 01/25/35 | | 3,255 | | 2,998 |
Series 2005-1 Class 1A13
4.750% due 02/25/35 | | 633 | | 637 |
Series 2005-3 Class 1A25
5.500% due 04/25/35 | | 882 | | 889 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2005-G Class 2A1 (Ê)
4.908% due 08/25/35 | | 1,503 | | 1,256 |
Series 2005-H Class 2A5 (Ê)
4.786% due 09/25/35 | | 3,300 | | 2,907 |
Series 2005-I Class 2A2 (Ê)
4.861% due 10/25/35 | | 2,680 | | 701 |
Series 2005-I Class 4A1 (Ê)
5.230% due 10/25/35 | | 1,667 | | 1,505 |
Series 2005-L Class 3A1 (Ê)
5.386% due 01/25/36 | | 1,586 | | 1,475 |
Series 2006-2 Class A12
6.000% due 07/25/46 | | 838 | | 748 |
Series 2006-2 Class A15
6.000% due 07/25/46 | | 1,724 | | 1,578 |
Series 2006-B Class 1A1 (Ê) 4.262% due 10/20/46 | | 1,143 | | 842 |
Series 2007-1 Class 1A16
5.625% due 03/25/37 | | 2,470 | | 2,179 |
Series 2007-1 Class 1A7
5.750% due 03/25/37 | | 271 | | 272 |
Series 2007-3 Class 1A1
6.000% due 09/25/37 | | 6,166 | | 5,492 |
Bear Stearns Adjustable Rate Mortgage Trust
Series 2002-11 Class 1A2
3.400% due 02/25/33 | | 10 | | 9 |
Series 2003-1 Class 6A1
2.919% due 04/25/33 | | 54 | | 53 |
Series 2003-8 Class 4A1
3.681% due 01/25/34 | | 278 | | 267 |
Series 2004-1 Class 21A1
2.925% due 04/25/34 | | 1,244 | | 1,174 |
Series 2004-3 Class 1A1 (Ê)
4.080% due 07/25/34 | | 980 | | 850 |
Series 2004-8 Class 2A1
3.482% due 11/25/34 | | 2,914 | | 2,605 |
Series 2004-9 Class 22A1 (Ê)
4.136% due 11/25/34 | | 539 | | 510 |
Series 2004-10 Class 22A1
4.976% due 01/25/35 | | 723 | | 716 |
Series 2005-2 Class A1 (Ê)
2.760% due 03/25/35 | | 11,754 | | 10,993 |
Series 2005-2 Class A2 (Ê)
2.934% due 03/25/35 | | 1,708 | | 1,665 |
Series 2005-5 Class A2 (Ê)
2.560% due 08/25/35 | | 2,810 | | 2,699 |
Series 2007-1 Class 3A2
5.666% due 02/25/47 | | 2,967 | | 363 |
Series 2007-3 Class 1A1
5.378% due 05/25/47 | | 11,014 | | 8,600 |
Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.952% due 05/25/35 | | 1,612 | | 1,212 |
Series 2005-5 Class 21A1
2.884% due 07/25/35 | | 3,590 | | 2,764 |
Series 2005-7 Class 22A1
5.119% due 09/25/35 | | 640 | | 494 |
| | |
| 128 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2005-8 Class 11A1 (Ê)
0.533% due 10/25/35 | | 1,981 | | 1,201 |
Series 2006-3 Class 22A1
5.733% due 05/25/36 | | 5,408 | | 2,610 |
Series 2006-3 Class 33A1 (Ê)
6.026% due 05/25/36 | | 1,747 | | 1,068 |
Series 2006-4 Class 13A1 (Ê)
0.423% due 08/25/36 | | 9,729 | | 4,566 |
Bear Stearns Asset Backed Securities Trust
6.500% due 01/01/32 | | 709 | | 711 |
Bear Stearns Commercial Mortgage Securities
Series 2000-WF2 Class C
7.590% due 10/15/32 | | 400 | | 408 |
Series 2001-TOP Class A2
6.480% due 02/15/35 | | 121 | | 124 |
Series 2001-TOP Class A3
5.610% due 11/15/33 | | 555 | | 576 |
Series 2004-PWR Class A3
4.565% due 07/11/42 | | 1,500 | | 1,522 |
Series 2005-PWR Class A4B
4.943% due 09/11/42 | | 85 | | 82 |
Series 2007-PW1 Class A4
5.908% due 06/11/40 | | 5,198 | | 5,293 |
5.331% due 02/11/44 | | 100 | | 99 |
5.694% due 06/11/50 | | 4,500 | | 4,572 |
Series 2007-PW1 Class AM
5.908% due 06/11/40 | | 2,181 | | 1,898 |
5.915% due 06/11/50 | | 3,640 | | 3,346 |
Series 2007-T26 Class A4
5.471% due 01/12/45 | | 400 | | 413 |
Bear Stearns Mortgage Funding Trust (Ê)
Series 2006-AR2 Class 2A1
0.493% due 09/25/46 | | 2,039 | | 1,096 |
Series 2006-AR3 Class 1A1
0.443% due 10/25/36 | | 2,130 | | 1,207 |
Series 2006-AR4 Class A1
0.473% due 12/25/36 | | 2,401 | | 1,314 |
Series 2006-AR5 Class 1A1
0.423% due 12/25/46 | | 5,235 | | 3,007 |
Series 2007-AR2 Class A1
0.433% due 03/25/37 | | 2,582 | | 1,529 |
Series 2007-AR2 Class A3
0.493% due 03/25/37 | | 9,807 | | 1,427 |
Series 2007-AR3 Class 1A1
0.403% due 03/25/37 | | 3,841 | | 2,186 |
Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
5.578% due 01/26/36 | | 2,331 | | 1,499 |
Series 2007-R6 Class 2A1
5.621% due 12/26/46 | | 1,357 | | 895 |
Chase Commercial Mortgage Securities Corp.
Series 2000-3 Class A2
7.319% due 10/15/32 | | 405 | | 409 |
Series 2001-245 Class A2 (Þ)
6.484% due 02/12/16 | | 298 | | 308 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Chase Mortgage Finance Corp.
Series 2003-S8 Class A1
4.500% due 09/25/18 | | 1,155 | | 1,162 |
Series 2006-S4 Class A3
6.000% due 12/25/36 | | 1,998 | | 1,959 |
Series 2006-S4 Class A4
6.000% due 12/25/36 | | 577 | | 551 |
Series 2007-A1 Class 1A3
3.518% due 02/25/37 | | 1,507 | | 1,486 |
Series 2007-A1 Class 2A1
4.124% due 02/25/37 | | 1,048 | | 1,027 |
Series 2007-A1 Class 3A1
3.615% due 02/25/37 | | 587 | | 561 |
Series 2007-A1 Class 4A1
3.303% due 02/25/37 | | 304 | | 298 |
Series 2007-A1 Class 5A1
4.078% due 02/25/37 | | 1,134 | | 1,100 |
Series 2007-A1 Class 7A1
4.517% due 02/25/37 | | 450 | | 461 |
Series 2007-A1 Class 8A1
4.212% due 02/25/37 | | 4,059 | | 4,090 |
Citicorp Mortgage Securities, Inc.
Series 2005-1 Class 1A1
5.000% due 02/25/35 | | 953 | | 935 |
Series 2006-3 Class 1A9
5.750% due 06/25/36 | | 2,840 | | 2,413 |
Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
5.431% due 10/15/49 | | 3,952 | | 4,044 |
Series 2006-C5 Class AM
5.462% due 10/15/49 | | 3,610 | | 3,299 |
Citigroup Mortgage Loan Trust, Inc.
Series 2005-11 Class A2A (Ê)
4.700% due 12/25/35 | | 274 | | 252 |
Series 2006-AR7 Class 1A4A
5.648% due 11/25/36 | | 8,204 | | 6,432 |
Series 2006-WFH Class A2 (Ê)
0.363% due 10/25/36 | | 1,573 | | 1,559 |
Series 2007-6 Class 1A4A
5.850% due 03/25/37 | | 2,470 | | 1,454 |
Series 2007-AR8 Class 2A1A
5.853% due 07/25/37 | | 3,769 | | 2,976 |
Series 2007-WFH Class A4 (Ê)
0.463% due 01/25/37 | | 11,880 | | 5,516 |
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.223% due 07/15/44 | | 10,680 | | 11,152 |
Series 2006-CD3 Class A5
5.617% due 10/15/48 | | 9,579 | | 9,853 |
Series 2007-CD4 Class A4
5.322% due 12/11/49 | | 1,650 | | 1,603 |
Citimortgage Alternative Loan Trust
Series 2006-A3 Class 1A5
6.000% due 07/25/36 | | 1,346 | | 993 |
Series 2007-A1 Class 1A5
6.000% due 01/25/37 | | 3,629 | | 2,300 |
| | |
| Russell Strategic Bond Fund | | 129 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2007-A3 Class 1A7
5.750% due 03/25/37 | | 2,457 | | 1,773 |
Commercial Mortgage Acceptance Corp.
Series 1998-C2 Class E
7.269% due 09/15/30 | | 610 | | 610 |
Commercial Mortgage Loan Trust
Series 2008-LS1 Class AJ
6.019% due 10/10/17 | | 1,280 | | 669 |
Commercial Mortgage Pass Through Certificates
Series 2001-J1A Class A2 (Þ)
6.457% due 02/16/34 | | 1,652 | | 1,670 |
Series 2001-J1A Class B (Þ)
6.614% due 02/16/34 | | 1,990 | | 2,050 |
Series 2003-LB1 Class A2
4.084% due 06/10/38 | | 4,550 | | 4,682 |
Series 2006-C8 Class A4
5.306% due 12/10/46 | | 2,800 | | 2,732 |
Series 2007-C9 Class A4
5.816% due 12/10/49 | | 7,970 | | 8,199 |
Series 2010-RR1 Class GEA (Þ)
5.543% due 02/11/17 | | 7,300 | | 7,178 |
Countrywide Alternative Loan Trust
Series 2003-20C Class 1A2
5.500% due 10/25/33 | | 528 | | 519 |
Series 2004-2CB Class 1A4 (Ê)
0.663% due 03/25/34 | | 339 | | 319 |
Series 2004-28C Class 6A1
6.000% due 01/25/35 | | 612 | | 621 |
Series 2004-J8 Class 1A1
7.000% due 09/25/34 | | 586 | | 594 |
Series 2005-1CB Class 2A1
6.000% due 03/25/35 | | 8,940 | | 8,204 |
Series 2005-1CB Class 2A2
5.500% due 03/25/35 | | 1,386 | | 1,332 |
Series 2005-16 Class A1 (Ê)
2.108% due 06/25/35 | | 2,970 | | 1,576 |
Series 2005-20C Class 1A1
5.500% due 07/25/35 | | 1,375 | | 1,207 |
Series 2005-32T Class A7 (Ê)
0.513% due 08/25/35 | | 1,021 | | 872 |
Series 2005-38 Class A1 (Ê)
1.963% due 09/25/35 | | 1,195 | | 750 |
Series 2005-38 Class A3 (Ê)
0.613% due 09/25/35 | | 1,195 | | 766 |
Series 2005-44 Class 1A2A (Ê)
0.553% due 10/25/35 | | 265 | | 264 |
Series 2005-51 Class 1A1 (Ê)
0.576% due 11/20/35 | | 1,557 | | 968 |
Series 2005-51 Class 1A2A (Ê)
0.546% due 11/20/35 | | 2,710 | | 2,618 |
Series 2005-51 Class 2A1 (Ê)
0.556% due 11/20/35 | | 353 | | 209 |
Series 2005-51 Class 2A2A (Ê)
0.546% due 11/20/35 | | 34 | | 33 |
Series 2005-51 Class 4A1 (Ê)
Interest Only STRIP
0.576% due 11/20/35 | | 551 | | 343 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2005-58 Class A2 (Ê)
Interest Only STRIP
0.646% due 12/20/35 | | 1,534 | | 447 |
Series 2005-59 Class 1A1 (Ê)
0.569% due 11/20/35 | | 2,563 | | 1,529 |
Series 2005-59 Class 1A2B (Ê)
0.516% due 11/20/35 | | 2,520 | | 2,420 |
Series 2005-62 Class 1A1 (Ê)
0.563% due 12/25/35 | | 1,785 | | 1,014 |
Series 2005-63 Class 5A1 (Ê)
5.236% due 12/25/35 | | 3,482 | | 2,503 |
Series 2005-85C Class 2A2
5.500% due 02/25/36 | | 52 | | 38 |
Series 2005-J8 Class 1A3
5.500% due 07/25/35 | | 2,180 | | 1,792 |
Series 2005-J13 Class 2A3
5.500% due 11/25/35 | | 1,043 | | 824 |
Series 2006-6CB Class 1A10
5.500% due 05/25/36 | | 779 | | 675 |
Series 2006-9T1 Class A7
6.000% due 05/25/36 | | 945 | | 639 |
Series 2006-23C Class 1A6
6.000% due 08/25/36 | | 2,702 | | 2,018 |
Series 2006-J2 Class A3
6.000% due 04/25/36 | | 1,464 | | 1,139 |
Series 2006-OA1 Class 2A1 (Ê)
0.466% due 03/20/46 | | 5,235 | | 2,922 |
Series 2006-OA1 Class 4A1 (Ê)
0.453% due 08/25/46 | | 3,011 | | 1,711 |
Series 2006-OA1 Class A1 (Ê)
0.436% due 02/20/47 | | 3,924 | | 2,126 |
Series 2006-OA1 Class A2 (Ê)
0.466% due 09/20/46 | | 5,998 | | 2,801 |
0.453% due 10/25/46 | | 20,488 | | 12,406 |
Series 2006-OA2 Class A1 (Ê)
0.423% due 02/25/47 | | 3,036 | | 1,847 |
0.446% due 03/20/47 | | 2,090 | | 1,191 |
Series 2006-OA2 Class A2A (Ê)
0.406% due 05/20/46 | | 1,151 | | 1,123 |
Series 2006-OA2 Class A5 (Ê)
Interest Only STRIP
0.486% due 05/20/46 | | 116 | | 52 |
Series 2006-OA6 Class 1A3 (Ê)
0.533% due 07/25/46 | | 1,192 | | 375 |
Series 2006-OC1 Class 2A1 (Ê)
0.353% due 11/25/36 | | 2,278 | | 2,226 |
0.363% due 01/25/37 | | 608 | | 596 |
Series 2006-OC6 Class 2A1 (Ê)
0.333% due 07/25/36 | | 539 | | 505 |
Series 2006-OC7 Class 2A1 (Ê)
0.333% due 07/25/46 | | 122 | | 120 |
Series 2006-OC9 Class A1 (Ê)
0.338% due 12/25/46 | | 1,388 | | 1,336 |
Series 2007-15C Class A5
5.750% due 07/25/37 | | 11,003 | | 8,456 |
Series 2007-15C Class A7
6.000% due 07/25/37 | | 2,912 | | 2,244 |
| | |
| 130 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2007-HY3 Class 1A1 (Ê)
5.990% due 03/25/47 | | 17,182 | | 11,496 |
Series 2007-J2 Class 2A1
6.000% due 07/25/37 | | 3,417 | | 2,623 |
Series 2007-OA1 Class A1A (Ê)
1.843% due 11/25/47 | | 7,376 | | 3,974 |
Series 2007-OA4 Class A1 (Ê)
0.433% due 05/25/47 | | 3,975 | | 2,254 |
Series 2007-OA6 Class A1B (Ê)
0.463% due 06/25/37 | | 1,755 | | 978 |
Countrywide Home Loan Mortgage Pass Through Trust
Series 2003-8 Class A2 (Ê)
0.763% due 05/25/18 | | 1,322 | | 1,173 |
Series 2003-20 Class 1A9
5.500% due 07/25/33 | | 732 | | 742 |
Series 2003-42 Class M (Ê)
Interest Only STRIP
3.706% due 10/25/33 | | 631 | | 157 |
Series 2003-52 Class A1
3.422% due 02/19/34 | | 1,807 | | 1,703 |
Series 2004-12 Class 1M
Interest Only STRIP
3.952% due 08/25/34 | | 313 | | 26 |
Series 2004-16 Class 1A1 (Ê)
0.663% due 09/25/34 | | 1,223 | | 743 |
Series 2004-22 Class A3
3.511% due 11/25/34 | | 1,991 | | 1,804 |
Series 2004-HYB Class 1A1
3.379% due 02/20/35 | | 3,381 | | 3,078 |
Series 2004-HYB Class A2
3.520% due 11/20/34 | | 1,487 | | 1,295 |
Series 2004-J9 Class 2A1
5.250% due 01/25/35 | | 1,094 | | 1,068 |
Series 2005-11 Class 5A1 (Ê)
0.563% due 03/25/35 | | 41 | | 27 |
Series 2005-29 Class A1
5.750% due 12/25/35 | | 2,595 | | 2,226 |
Series 2005-HYB Class 3A2A (Ê)
5.250% due 02/20/36 | | 377 | | 296 |
Series 2005-R2 Class 2A4 (Þ)
8.500% due 06/25/35 | | 260 | | 252 |
Series 2006-1 Class A2
6.000% due 03/25/36 | | 1,457 | | 1,239 |
Series 2006-1 Class A3
Interest Only STRIP
6.000% due 03/25/36 | | 360 | | 78 |
Series 2006-13 Class 1A23
6.250% due 09/25/36 | | 325 | | 264 |
Series 2006-20 Class B1
Interest Only STRIP
6.000% due 02/25/37 | | 978 | | — |
Series 2006-HYB Class 3A1A
5.975% due 05/20/36 | | 2,214 | | 1,596 |
Series 2006-OA5 Class 2A1 (Ê)
0.463% due 04/25/46 | | 4,256 | | 2,488 |
Series 2006-R2 Class AF1 (Ê)(Þ)
0.683% due 07/25/36 | | 2,805 | | 2,119 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2007-1 Class A1
6.000% due 03/25/37 | | 14,052 | | 11,501 |
Series 2007-14 Class A19
6.000% due 09/25/37 | | 6,597 | | 5,856 |
Series 2007-18 Class 2A1
6.500% due 11/25/37 | | 2,700 | | 2,352 |
Series 2007-HY1 Class 1A2
5.601% due 04/25/37 | | 976 | | 196 |
Series 2008-2R Class A1
6.000% due 12/25/36 | | 1,568 | | 1,455 |
Credit Suisse First Boston Mortgage Securities Corp.
Series 2001-CF2 Class A4
6.505% due 02/15/34 | | 399 | | 408 |
Series 2001-CK1 Class C
6.730% due 12/18/35 | | 1,083 | | 1,090 |
Series 2001-CKN Class A4
5.435% due 09/15/34 | | 6,073 | | 6,284 |
Series 2001-SPG Class A2 (Þ)
6.515% due 08/13/18 | | 995 | | 1,047 |
Series 2002-30 Class DB1
7.398% due 11/25/32 | | 653 | | 596 |
Series 2002-CKP Class A3
6.439% due 12/15/35 | | 1,395 | | 1,476 |
Series 2002-CKS Class B
5.333% due 11/15/36 | | 2,525 | | 2,598 |
Series 2003-29 Class 5A1
7.000% due 12/25/33 | | 101 | | 102 |
Series 2004-1 Class 3A1
7.000% due 02/25/34 | | 41 | | 42 |
Series 2004-C1 Class A3
4.321% due 01/15/37 | | 1,983 | | 2,023 |
Series 2005-9 Class 2A1
5.500% due 10/25/35 | | 5,599 | | 4,890 |
Series 2005-C6 Class A4
5.230% due 12/15/40 | | 5,300 | | 5,552 |
Credit Suisse Mortgage Capital Certificates
Series 2006-8 Class 4A1 (Å)
6.500% due 10/25/21 | | 8,047 | | 5,606 |
Series 2006-C3 Class A3
6.019% due 06/15/38 | | 362 | | 374 |
Series 2006-C3 Class B
6.019% due 06/15/38 | | 2,153 | | 1,065 |
Series 2006-C4 Class A3
5.467% due 09/15/39 | | 3,350 | | 3,295 |
Series 2006-C5 Class A3
5.311% due 12/15/39 | | 5,015 | | 4,953 |
Series 2007-C1 Class A3
5.383% due 02/15/40 | | 5,350 | | 5,058 |
Series 2007-C2 Class A3
5.542% due 01/15/49 | | 64 | | 60 |
Series 2007-C5 Class B
6.324% due 09/15/40 | | 2,584 | | 741 |
Crown Castle Towers LLC (Þ)
Series 2006-1A Class AFX
5.245% due 11/15/36 | | 1,875 | | 1,960 |
| | |
| Russell Strategic Bond Fund | | 131 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2003-4XS Class A6A
4.820% due 10/25/33 | | 547 | | 507 |
Series 2005-AR1 Class 2A3
4.865% due 08/25/35 | | 925 | | 498 |
Series 2007-OA1 Class A1 (Ê)
0.413% due 02/25/47 | | 7,408 | | 4,520 |
Series 2007-OA2 Class A1 (Ê)
1.211% due 04/25/47 | | 16,543 | | 9,987 |
DLJ Commercial Mortgage Corp.
Series 1999-CG1 Class S
Interest Only STRIP
1.392% due 03/10/32 | | 1,823 | | 58 |
Series 2000-CF1 Class A4
8.020% due 06/10/33 | | 885 | | 885 |
Series 2000-CKP Class A1B
7.180% due 11/10/33 | | 571 | | 574 |
Downey Savings & Loan Association Mortgage Loan Trust (Ê)
Series 2006-AR1 Class 2A1A
1.381% due 04/19/47 | | 1,786 | | 1,142 |
Fannie Mae
5.190% due 2012 | | 2,524 | | 2,686 |
5.500% due 2013 | | 6 | | 7 |
5.000% due 2014 | | 22 | | 23 |
5.500% due 2014 | | 16 | | 17 |
6.500% due 2015 | | 6 | | 7 |
5.000% due 2016 | | 166 | | 174 |
5.500% due 2016 | | 39 | | 43 |
6.000% due 2016 | | 403 | | 439 |
8.000% due 2016 | | 7 | | 8 |
11.000% due 2016 | | 43 | | 47 |
5.000% due 2017 | | 4,486 | | 4,772 |
5.500% due 2017 | | 277 | | 296 |
6.000% due 2017 | | 268 | | 289 |
6.500% due 2017 | | 191 | | 206 |
7.000% due 2017 | | 24 | | 27 |
8.000% due 2017 | | 27 | | 30 |
4.000% due 2018 | | 16,460 | | 17,177 |
4.500% due 2018 | | 6,687 | | 7,056 |
5.000% due 2018 | | 11,592 | | 12,370 |
5.500% due 2018 | | 270 | | 292 |
6.500% due 2018 | | 136 | | 149 |
7.000% due 2018 | | 79 | | 87 |
10.000% due 2018 | | 25 | | 28 |
4.500% due 2019 | | 97 | | 103 |
5.000% due 2019 | | 10,868 | | 11,595 |
5.500% due 2019 | | 116 | | 124 |
6.000% due 2019 | | 3,254 | | 3,513 |
6.500% due 2019 | | 66 | �� | 75 |
4.000% due 2020 | | 67 | | 67 |
4.500% due 2020 | | 785 | | 829 |
5.000% due 2020 | | 618 | | 659 |
5.500% due 2020 | | 818 | | 881 |
6.000% due 2020 | | 4,377 | | 4,724 |
6.500% due 2020 | | 31 | | 34 |
8.000% due 2020 | | 4 | | 5 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
5.000% due 2021 | | 4,432 | | 4,724 |
5.500% due 2021 | | 4,845 | | 5,196 |
5.500% due 2022 | | 20,103 | | 21,509 |
6.500% due 2022 | | 40 | | 45 |
5.000% due 2023 | | 162 | | 171 |
5.500% due 2023 | | 4,889 | | 5,232 |
7.500% due 2024 | | 5 | | 6 |
8.000% due 2024 | | 53 | | 61 |
10.000% due 2024 | | 10 | | 11 |
3.145% due 2025 (Ê) | | 15 | | 15 |
7.000% due 2025 | | 2 | | 3 |
2.923% due 2026 (Ê) | | 249 | | 260 |
6.000% due 2026 | | 1,238 | | 1,331 |
7.000% due 2026 | | 109 | | 121 |
9.000% due 2026 | | 20 | | 23 |
6.000% due 2027 | | 3,689 | | 3,951 |
7.000% due 2027 | | 5 | | 5 |
7.500% due 2027 | | 16 | | 18 |
6.500% due 2028 | | 188 | | 209 |
7.000% due 2028 | | 247 | | 276 |
5.500% due 2029 | | 1 | | 1 |
6.500% due 2029 | | 438 | | 484 |
7.000% due 2029 | | 1,414 | | 1,579 |
7.500% due 2029 | | 81 | | 90 |
8.000% due 2029 | | 3 | | 3 |
8.500% due 2029 | | 2 | | 2 |
6.500% due 2030 | | 155 | | 170 |
7.000% due 2030 | | 552 | | 615 |
7.500% due 2030 | | 312 | | 349 |
8.000% due 2030 | | 286 | | 322 |
8.500% due 2030 | | 185 | | 215 |
9.500% due 2030 | | 85 | | 100 |
6.500% due 2031 | | 369 | | 407 |
7.000% due 2031 | | 1,263 | | 1,409 |
7.500% due 2031 | | 398 | | 451 |
8.000% due 2031 | | 534 | | 621 |
8.500% due 2031 | | 261 | | 306 |
6.500% due 2032 | | 1,119 | | 1,233 |
7.000% due 2032 | | 3,554 | | 3,974 |
7.500% due 2032 | | 319 | | 361 |
8.000% due 2032 | | 23 | | 27 |
8.500% due 2032 | | 34 | | 40 |
2.548% due 2033 (Ê) | | 293 | | 306 |
2.590% due 2033 (Ê) | | 506 | | 528 |
2.625% due 2033 (Ê) | | 10 | | 11 |
2.745% due 2033 (Ê) | | 556 | | 584 |
2.785% due 2033 (Ê) | | 1,198 | | 1,243 |
2.791% due 2033 (Ê) | | 57 | | 59 |
2.818% due 2033 (Ê) | | 1,214 | | 1,260 |
3.239% due 2033 (Ê) | | 10 | | 11 |
5.000% due 2033 | | 3,374 | | 3,524 |
5.500% due 2033 | | 3,956 | | 4,198 |
6.000% due 2033 | | 586 | | 634 |
6.500% due 2033 | | 685 | | 753 |
7.000% due 2033 | | 1,011 | | 1,126 |
2.697% due 2034 (Ê) | | 1,558 | | 1,626 |
3.101% due 2034 (Ê) | | 837 | | 875 |
3.323% due 2034 (Ê) | | 1,710 | | 1,771 |
| | |
| 132 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
3.448% due 2034 (Ê) | | 226 | | 235 |
5.000% due 2034 | | 1,135 | | 1,185 |
5.500% due 2034 | | 11,589 | | 12,289 |
6.000% due 2034 | | 2,105 | | 2,272 |
6.500% due 2034 | | 913 | | 1,000 |
7.000% due 2034 | | 356 | | 396 |
3.093% due 2035 (Ê) | | 1,136 | | 1,167 |
3.303% due 2035 (Ê) | | 1,242 | | 1,292 |
3.340% due 2035 (Ê) | | 1,155 | | 1,192 |
3.375% due 2035 (Ê) | | 1,846 | | 1,911 |
3.377% due 2035 (Ê) | | 574 | | 591 |
3.498% due 2035 (Ê) | | 1,455 | | 1,503 |
3.610% due 2035 (Ê) | | 2,124 | | 2,193 |
4.221% due 2035 (Ê) | | 3,561 | | 3,701 |
5.000% due 2035 | | 1,556 | | 1,619 |
5.030% due 2035 (Ê) | | 292 | | 310 |
5.174% due 2035 (Ê) | | 274 | | 290 |
5.500% due 2035 | | 200 | | 212 |
6.000% due 2035 | | 4,791 | | 5,187 |
6.500% due 2035 | | 68 | | 75 |
7.000% due 2035 | | 341 | | 377 |
7.500% due 2035 | | 984 | | 1,112 |
4.810% due 2036 (Ê) | | 363 | | 378 |
5.500% due 2036 | | 8,661 | | 9,123 |
6.000% due 2036 | | 19,126 | | 20,387 |
6.383% due 2036 (Ê) | | 54 | | 58 |
6.500% due 2036 | | 1,143 | | 1,237 |
7.000% due 2036 | | 510 | | 564 |
5.500% due 2037 | | 23,256 | | 24,501 |
5.503% due 2037 (Ê) | | 2,872 | | 3,025 |
6.000% due 2037 | | 30,407 | | 32,389 |
6.500% due 2037 | | 5,611 | | 6,045 |
5.000% due 2038 | | 2,612 | | 2,708 |
5.500% due 2038 | | 2,401 | | 2,533 |
6.000% due 2038 | | 24,691 | | 26,300 |
4.500% due 2039 | | 22,333 | | 22,560 |
5.000% due 2039 | | 57,779 | | 59,888 |
5.500% due 2039 | | 55 | | 58 |
6.000% due 2039 | | 6,510 | | 6,931 |
1.863% due 2040 (Ê) | | 259 | | 259 |
4.500% due 2040 | | 4,697 | | 4,741 |
5.000% due 2040 | | 19,182 | | 19,881 |
1.663% due 2043 (Ê) | | 170 | | 170 |
30 Year TBA (Ï)
4.500% | | 226,655 | | 228,492 |
5.000% | | 7,000 | | 7,217 |
5.500% | | 4,400 | | 4,557 |
6.000% | | 18,000 | | 19,271 |
6.500% | | 115,000 | | 124,301 |
Series 1997-281 Class 2
Interest Only STRIP
9.000% due 11/01/26 | | 48 | | 13 |
Series 2000-306 Class IO
Interest Only STRIP
8.000% due 05/01/30 | | 52 | | 12 |
Series 2001-317 Class 2
Interest Only STRIP
8.000% due 12/01/31 | | 79 | | 18 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2002-320 Class 2
Interest Only STRIP
7.000% due 04/01/32 | | 28 | | 7 |
Series 2003-339 Class 23
Interest Only STRIP
5.000% due 07/01/18 | | 2,124 | | 231 |
Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33 | | 2,304 | | 488 |
Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18 | | 6,720 | | 721 |
Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19 | | 7,435 | | 791 |
Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35 | | 11,055 | | 2,012 |
Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36 | | 1,901 | | 317 |
Fannie Mae Grantor Trust
Series 1999-T2 Class A1
7.500% due 01/19/39 | | 67 | | 75 |
Series 2000-T6 Class A1
7.500% due 06/25/30 | | 53 | | 61 |
Series 2001-T8 Class A2
9.500% due 07/25/41 | | 200 | | 218 |
Series 2002-T19 Class A1
6.500% due 07/25/42 | | 528 | | 577 |
Series 2003-T4 Class 2A5
5.407% due 09/26/33 | | 710 | | 645 |
Series 2004-T1 Class 1A2
6.500% due 01/25/44 | | 43 | | 48 |
Fannie Mae REMICS
Series 1996-46 Class ZA
7.500% due 11/25/26 | | 226 | | 249 |
Series 1997-68 Class SC (Ê)
Interest Only STRIP
8.219% due 05/18/27 | | 67 | | 12 |
Series 1999-56 Class Z
7.000% due 12/18/29 | | 919 | | 1,024 |
Series 2001-4 Class SA (Ê)
Interest Only STRIP
7.294% due 02/17/31 | | 109 | | 13 |
Series 2003-21 Class M
5.000% due 02/25/17 | | 239 | | 247 |
Series 2003-25 Class IK
Interest Only STRIP
7.000% due 04/25/33 | | 260 | | 57 |
Series 2003-32 Class FH (Ê)
0.663% due 11/25/22 | | 1,678 | | 1,665 |
Series 2003-32 Class UI
Interest Only STRIP
6.000% due 05/25/33 | | 387 | | 74 |
Series 2003-33 Class IA
Interest Only STRIP
6.500% due 05/25/33 | | 1,489 | | 288 |
| | |
| Russell Strategic Bond Fund | | 133 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2003-35 Class FY (Ê)
0.663% due 05/25/18 | | 3,707 | | 3,684 |
Series 2003-35 Class IU
Interest Only STRIP
6.000% due 05/25/33 | | 364 | | 64 |
Series 2003-35 Class UI
Interest Only STRIP
6.500% due 05/25/33 | | 347 | | 74 |
Series 2003-64 Class JI
Interest Only STRIP
6.000% due 07/25/33 | | 382 | | 66 |
Series 2003-78 Class FI (Ê)
0.663% due 01/25/33 | | 1,601 | | 1,603 |
Series 2003-82 Class IA
Interest Only STRIP
6.000% due 08/25/32 | | 252 | | 16 |
Series 2003-82 Class WI
Interest Only STRIP
6.000% due 08/25/32 | | 28 | | 1 |
Series 2003-122 Class AJ
4.500% due 02/25/28 | | 378 | | 394 |
Series 2004-21 Class FL (Ê)
0.613% due 11/25/32 | | 940 | | 940 |
Series 2004-70 Class EB
5.000% due 10/25/24 | | 3,450 | | 3,684 |
Series 2005-65 Class FP (Ê)
0.513% due 08/25/35 | | 53 | | 53 |
Series 2005-69 Class IO (Ê)
Zero coupon due 08/25/35 | | 12 | | — |
Series 2005-79 Class FC (Ê)
0.563% due 02/25/22 | | 1,152 | | 1,150 |
Series 2005-110 Class MB
5.500% due 09/25/35 | | 1,750 | | 1,894 |
Series 2006-5 Class 3A2 (Ê)
2.891% due 05/25/35 | | 327 | | 329 |
Series 2006-22 Class CE
4.500% due 08/25/23 | | 1,895 | | 1,915 |
Series 2006-48 Class LG
Zero coupon due 06/25/36 | | 473 | | 412 |
Series 2006-81 Class LF (Ê)(Å)
Zero coupon due 09/25/36 | | 52 | | 51 |
Series 2006-118 Class A1 (Ê)
0.323% due 12/25/36 | | 334 | | 330 |
Series 2006-118 Class A2 (Ê)
0.323% due 12/25/36 | | 1,208 | | 1,195 |
Series 2007-27 Class XA (Ê)(Å)
1.000% due 05/25/35 | | 41 | | 37 |
Series 2007-39 Class EF (Ê)
0.513% due 05/25/37 | | 1,655 | | 1,642 |
Series 2007-42 Class LF (Ê)(Å)
1.000% due 05/25/37 | | 173 | | 168 |
Series 2007-53 Class UF (Ê)(Å)
1.000% due 06/25/37 | | 67 | | 67 |
Series 2007-56 Class GY (Ê)(Å)
1.000% due 06/25/37 | | 47 | | 46 |
Series 2007-73 Class A1 (Ê)
0.323% due 07/25/37 | | 3,342 | | 3,046 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2008-22 Class FD (Ê)
1.103% due 04/25/48 | | 5,730 | | 5,753 |
Series 2008-56 Class FD (Ê)
1.203% due 07/25/48 | | 6,461 | | 6,445 |
Series 2009-39 Class LB
4.500% due 06/25/29 | | 1,964 | | 1,933 |
Series 2009-69 Class MB
4.000% due 09/25/29 | | 5,155 | | 4,878 |
Series 2009-70 Class PS (Ê)
Interest Only STRIP
6.488% due 01/25/37 | | 47,715 | | 7,085 |
Series 2009-71 Class MB
4.500% due 09/25/24 | | 2,970 | | 3,029 |
Series 2009-89 Class A1
5.410% due 05/25/35 | | 3,466 | | 3,616 |
Series 2009-96 Class DB
4.000% due 11/25/29 | | 8,123 | | 7,624 |
Fannie Mae Whole Loan
Series 2003-W1 Class 2A
7.500% due 12/25/42 | | 104 | | 118 |
Series 2003-W4 Class 4A
7.500% due 10/25/42 | | 49 | | 56 |
Series 2003-W17 Class 1A6
5.310% due 08/25/33 | | 5,960 | | 6,278 |
Series 2004-W9 Class 2A1
6.500% due 02/25/44 | | 307 | | 336 |
Series 2004-W11 Class 1A2
6.500% due 05/25/44 | | 607 | | 664 |
Fannie Mae-Aces
Series 2006-M2 Class A2F
5.259% due 05/25/20 | | 355 | | 387 |
FDIC Structured Sale Guaranteed
Notes (Þ) | | | | |
Series 2010-L2A Class A
3.000% due 09/30/19 | | 12,219 | | 12,202 |
Series 2010-S1 Class 1A (Ê)
0.823% due 02/25/48 | | 8,650 | | 8,675 |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates
Series 2010-K00 Class A2
4.251% due 01/25/20 | | 10,885 | | 11,057 |
| Federal Home Loan Mortgage Corp. Structured Pass Through Securities | | | | |
Series 2002-42 Class A6
9.500% due 02/25/42 | | 81 | | 98 |
Series 2003-58 Class 2A
6.500% due 09/25/43 | | 287 | | 314 |
Series 2005-63 Class 1A1 (Ê)
1.663% due 02/25/45 | | 123 | | 124 |
| First Horizon Alternative Mortgage Securities | | | | |
Series 2004-AA3 Class A1 (Ê)
2.334% due 09/25/34 | | 359 | | 318 |
Series 2005-AA2 Class 1A1 (Ê)
2.292% due 03/25/35 | | 185 | | 147 |
Series 2005-AA5 Class 1A1 (Ê)
2.544% due 07/25/35 | | 238 | | 170 |
Series 2005-AA7 Class 2A1 (Ê)
5.383% due 09/25/35 | | 2,394 | | 1,794 |
| | |
| 134 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-FA3 Class A6
6.000% due 07/25/36 | | 1,229 | | 1,011 |
First Horizon Asset Securities, Inc.
Series 2003-5 Class 1A17
8.000% due 07/25/33 | | 75 | | 75 |
Series 2004-AR5 Class 4A1 (Ê)
5.665% due 10/25/34 | | 377 | | 378 |
Series 2004-AR6 Class 2A1 (Ê)
3.007% due 12/25/34 | | 515 | | 512 |
Series 2005-AR3 Class 2A1 (Ê)
5.338% due 08/25/35 | | 637 | | 582 |
Series 2005-AR5 Class 3A1 (Ê)
5.558% due 10/25/35 | | 615 | | 576 |
Series 2006-AR4 Class 1A3 (Ê)
Interest Only STRIP
5.476% due 01/25/37 | | 118 | | 33 |
First Union Commercial Mortgage Securities, Inc.
Series 1997-C2 Class D
7.120% due 11/18/29 | | 1,615 | | 1,737 |
First Union National Bank-Bank of America Commercial Mortgage Trust
Series 2001-C1 Class A2
6.136% due 03/15/33 | | 406 | | 412 |
Freddie Mac
5.500% due 2013 | | 1 | | 1 |
12.000% due 2013 | | 5 | | 5 |
12.000% due 2014 | | 7 | | 8 |
11.000% due 2015 | | 5 | | 6 |
5.500% due 2016 | | 13 | | 14 |
6.000% due 2016 | | 69 | | 75 |
10.000% due 2016 | | 41 | | 45 |
5.500% due 2017 | | 118 | | 127 |
8.500% due 2017 | | 24 | | 27 |
10.500% due 2017 | | 6 | | 7 |
4.500% due 2018 | | 667 | | 706 |
5.000% due 2018 | | 2,753 | | 2,939 |
5.500% due 2018 | | 39 | | 42 |
4.500% due 2019 | | 192 | | 203 |
5.000% due 2019 | | 4,067 | | 4,346 |
5.500% due 2019 | | 115 | | 124 |
5.000% due 2020 | | 8,417 | | 8,984 |
5.500% due 2020 | | 5,306 | | 5,720 |
8.000% due 2020 | | 79 | | 91 |
10.000% due 2020 | | 21 | | 23 |
11.000% due 2020 | | 26 | | 31 |
5.000% due 2021 | | 851 | | 910 |
10.500% due 2021 | | 13 | | 15 |
6.500% due 2025 | | 4 | | 4 |
8.500% due 2025 | | 23 | | 27 |
3.278% due 2027 (Ê) | | 18 | | 19 |
7.000% due 2027 | | 136 | | 153 |
8.500% due 2027 | | 167 | | 195 |
2.767% due 2028 (Ê) | | 18 | | 19 |
3.115% due 2028 (Ê) | | 15 | | 15 |
7.500% due 2028 | | 33 | | 38 |
6.500% due 2029 | | 86 | | 94 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
7.500% due 2029 | | 56 | | 63 |
3.331% due 2030 (Ê) | | 27 | | 28 |
6.500% due 2030 | | 5 | | 5 |
7.000% due 2030 | | 35 | | 38 |
7.500% due 2030 | | 248 | | 282 |
8.000% due 2030 | | 41 | | 47 |
8.500% due 2030 | | 65 | | 76 |
6.500% due 2031 | | 660 | | 725 |
7.000% due 2031 | | 325 | | 363 |
7.500% due 2031 | | 81 | | 93 |
8.000% due 2031 | | 211 | | 245 |
7.000% due 2032 | | 146 | | 163 |
7.500% due 2032 | | 139 | | 158 |
2.744% due 2033 (Ê) | | 403 | | 420 |
3.347% due 203 (Ê) | | 70 | | 72 |
5.000% due 2033 | | 786 | | 822 |
5.500% due 2033 | | 2,773 | | 2,946 |
6.000% due 2033 | | 67 | | 73 |
6.500% due 2033 | | 262 | | 287 |
7.500% due 2033 | | 66 | | 75 |
2.873% due 2034 (Ê) | | 510 | | 526 |
3.426% due 2034 (Ê) | | 821 | | 855 |
3.641% due 2034 (Ê) | | 1,611 | | 1,679 |
5.500% due 2034 | | 1,037 | | 1,102 |
6.000% due 2034 | | 92 | | 100 |
3.150% due 2035 (Ê) | | 1,478 | | 1,540 |
4.866% due 2035 (Ê) | | 2,636 | | 2,753 |
5.000% due 2035 | | 296 | | 308 |
5.003% due 2035 (Ê) | | 339 | | 356 |
6.000% due 2035 | | 507 | | 551 |
5.500% due 2036 | | 539 | | 571 |
5.810% due 2036 (Ê) | | 1,025 | | 1,085 |
5.892% due 2036 (Ê) | | 1,769 | | 1,862 |
5.970% due 2036 (Ê) | | 1,004 | | 1,065 |
6.000% due 2036 | | 203 | | 219 |
5.452% due 2037 (Ê) | | 1,422 | | 1,503 |
5.500% due 2037 | | 2,090 | | 2,202 |
5.636% due 2037 (Ê) | | 5,608 | | 5,931 |
5.687% due 2037 (Ê) | | 738 | | 781 |
5.724% due 2037 (Ê) | | 2,501 | | 2,646 |
5.740% due 2037 (Ê) | | 1,672 | | 1,770 |
5.820% due 2037 (Ê) | | 1,881 | | 2,002 |
5.859% due 2037 (Ê) | | 579 | | 616 |
5.931% due 2037 (Ê) | | 939 | | 1,000 |
6.000% due 2037 | | 10,238 | | 10,977 |
5.000% due 2038 | | 693 | | 720 |
5.500% due 2038 | | 85,256 | | 90,168 |
6.000% due 2038 | | 77,646 | | 83,210 |
6.500% due 2038 | | 987 | | 1,072 |
4.500% due 2039 | | 29,720 | | 30,025 |
5.000% due 2039 | | 64,148 | | 66,554 |
6.000% due 2039 | | 109 | | 117 |
4.500% due 2040 | | 9,715 | | 9,808 |
5.000% due 2040 | | 8,666 | | 8,989 |
30 Year TBA (Ï)
4.500% | | 34,000 | | 34,282 |
5.500% | | 9,000 | | 9,506 |
6.000% | | 21,000 | | 22,477 |
| | |
| Russell Strategic Bond Fund | | 135 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Freddie Mac Reference REMIC
Series 2006-R00 Class AK
5.750% due 12/15/18 | | 1,122 | | 1,180 |
Freddie Mac REMICS
Series 1991-103 Class Z
9.000% due 02/15/21 | | 52 | | 52 |
Series 1994-173 Class Z
7.000% due 05/15/24 | | 296 | | 312 |
Series 1999-212 Class SG (Ê)
6.688% due 06/17/27 | | 1,122 | | 112 |
Series 2000-224 Class SC (Ê)
Interest Only STRIP
7.246% due 08/15/30 | | 37 | | 5 |
Series 2000-226 Class F (Ê)
0.704% due 11/15/30 | | 57 | | 57 |
Series 2001-229 Class KF (Ê)
0.513% due 07/25/22 | | 885 | | 885 |
Series 2001-232 Class ZQ
6.500% due 06/15/31 | | 1,927 | | 2,113 |
Series 2002-246 Class SJ (Ê)
Interest Only STRIP
7.746% due 03/15/32 | | 141 | | 21 |
Series 2003-256 Class FJ (Ê)
0.654% due 02/15/33 | | 1,197 | | 1,199 |
Series 2003-258 Class DG
5.000% due 03/15/32 | | 3,796 | | 4,007 |
Series 2003-259 Class IQ
Interest Only STRIP
5.000% due 06/15/17 | | 498 | | 20 |
Series 2003-261 Class UI
Interest Only STRIP
6.500% due 05/15/33 | | 57 | | 11 |
Series 2003-262 Class QH
5.000% due 05/15/33 | | 1,615 | | 1,631 |
5.000% due 06/15/33 | | 1,655 | | 1,731 |
Series 2003-264 Class IM
Interest Only STRIP
7.000% due 07/15/33 | | 324 | | 70 |
Series 2003-266 Class MA
4.500% due 10/15/31 | | 788 | | 822 |
Series 2003-269 Class LG
4.500% due 10/15/23 | | 1,445 | | 1,469 |
Series 2003-272 Class TA
4.500% due 12/15/33 | | 1,300 | | 1,204 |
Series 2004-275 Class FM (Ê)
0.604% due 12/15/30 | | 140 | | 140 |
Series 2004-277 Class UF (Ê)
0.637% due 06/15/33 | | 1,591 | | 1,589 |
Series 2004-281 Class DF (Ê)
0.787% due 06/15/23 | | 472 | | 471 |
Series 2005-294 Class FA (Ê)
0.507% due 03/15/20 | | 914 | | 903 |
Series 2005-299 Class KF (Ê)
0.737% due 06/15/35 | | 239 | | 237 |
Series 2005-301 Class IM
Interest Only STRIP
5.500% due 01/15/31 | | 1,147 | | 66 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2005-303 Class XA (Ê)(Å)
1.000% due 09/15/35 | | 169 | | 165 |
Series 2005-305 Class JF (Ê)
0.637% due 10/15/35 | | 191 | | 191 |
Series 2006-312 Class HT
5.000% due 03/15/26 | | 3,916 | | 4,136 |
Series 2006-313 Class X (Ê)(Å)
1.000% due 04/15/36 | | 6 | | 6 |
Series 2006-314 Class LF (Ê)
0.637% due 05/15/36 | | 436 | | 439 |
Series 2006-315 Class EQ
5.000% due 05/15/26 | | 1,920 | | 2,002 |
Series 2006-316 Class X (Ê)(Å)
1.000% due 06/15/36 | | 5 | | 5 |
Series 2007-327 Class SX (Ê)(Å)
Zero coupon due 07/15/36 | | 65 | | 63 |
Series 2007-327 Class UF (Ê)(Å)
1.000% due 02/15/37 | | 93 | | 92 |
Series 2007-327 Class WF (Ê)(Å)
1.000% due 09/15/36 | | 37 | | 37 |
Series 2007-330 Class GL (Ê)(Å)
14.057% due 04/15/37 | | 99 | | 99 |
Series 2007-333 Class BF (Ê)
0.487% due 07/15/19 | | 2,154 | | 2,143 |
Series 2007-333 Class FT (Ê)
0.487% due 08/15/19 | | 4,964 | | 4,937 |
Series 2009-356 Class LB
4.000% due 08/15/29 | | 3,828 | | 3,499 |
Series 2010-362 Class EL
4.000% due 01/15/30 | | 2,930 | | 2,753 |
Series 2010-364 Class JA
1.500% due 03/15/15 | | 16,059 | | 16,037 |
Series 2010-365 Class B
4.500% due 04/15/30 | | 5,735 | | 5,699 |
Freddie Mac Strips
Series 1998-191 Class IO
Interest Only STRIP
8.000% due 01/01/28 | | 42 | | 9 |
Series 1998-194 Class IO
Interest Only STRIP
6.500% due 04/01/28 | | 177 | | 48 |
Series 2001-212 Class IO
Interest Only STRIP
6.000% due 05/01/31 | | 216 | | 46 |
Series 2001-215 Class IO
Interest Only STRIP
8.000% due 06/01/31 | | 122 | | 28 |
Series 2008-256 Class 56 (Å)
Interest Only STRIP
4.500% due 05/15/23 | | 20,928 | | 2,203 |
GE Capital Commercial Mortgage Corp.
Series 2001-1 Class A2
6.531% due 05/15/33 | | 3,840 | | 3,958 |
Series 2001-1 Class B
6.719% due 05/15/33 | | 1,711 | | 1,760 |
Series 2001-1 Class D
7.108% due 05/15/33 | | 2,635 | | 2,715 |
| | |
| 136 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2002-1A Class A3
6.269% due 12/10/35 | | 1,240 | | 1,317 |
Series 2002-3A Class A1
4.229% due 12/10/37 | | 1,572 | | 1,589 |
Series 2003-C2 Class A4
5.145% due 07/10/37 | | 20 | | 21 |
Series 2004-C2 Class A2
4.119% due 03/10/40 | | 18 | | 18 |
Series 2005-C1 Class A2
4.353% due 06/10/48 | | 10 | | 10 |
Series 2005-C3 Class A4
5.046% due 07/10/45 | | 315 | | 316 |
Ginnie Mae I
11.000% due 2013 | | 4 | | 4 |
10.500% due 2015 | | 32 | | 35 |
11.000% due 2015 | | 1 | | 1 |
7.000% due 2016 | | 5 | | 5 |
10.500% due 2016 | | 40 | | 45 |
11.000% due 2020 | | 21 | | 23 |
10.500% due 2021 | | 40 | | 45 |
8.000% due 2022 | | 13 | | 15 |
10.000% due 2022 | | 64 | | 71 |
7.500% due 2024 | | 21 | | 24 |
8.000% due 2025 | | 10 | | 11 |
10.000% due 2025 | | 50 | | 58 |
8.000% due 2030 | | 199 | | 229 |
7.500% due 2031 | | 48 | | 55 |
8.000% due 2031 | | 2 | | 2 |
7.500% due 2032 | | 14 | | 16 |
8.000% due 2032 | | 12 | | 14 |
6.500% due 2037 | | 17,122 | | 18,559 |
6.500% due 2038 | | 15,238 | | 16,515 |
4.500% due 2039 | | 48,235 | | 49,060 |
5.000% due 2039 | | 8,811 | | 9,208 |
6.500% due 2039 | | 7,591 | | 8,225 |
4.500% due 2040 | | 5,000 | | 5,087 |
30 Year TBA (Ï)
4.500% | | 67,335 | | 68,366 |
5.500% | | 5,215 | | 5,536 |
6.000% | | 38,000 | | 40,749 |
Ginnie Mae II
3.125% due 2023 (Ê) | | 235 | | 241 |
3.625% due 2023 (Ê) | | 26 | | 26 |
4.375% due 2023 (Ê) | | 158 | | 164 |
3.125% due 2024 (Ê) | | 197 | | 203 |
3.625% due 2024 (Ê) | | 168 | | 173 |
3.125% due 2025 (Ê) | | 9 | | 9 |
3.625% due 2025 (Ê) | | 10 | | 10 |
4.375% due 2025 (Ê) | | 280 | | 294 |
3.125% due 2026 (Ê) | | 80 | | 82 |
8.500% due 2026 | | 26 | | 30 |
3.125% due 2027 (Ê) | | 5 | | 6 |
3.625% due 2027 (Ê) | | 154 | | 159 |
4.375% due 2027 (Ê) | | 114 | | 119 |
4.375% due 2028 (Ê) | | 2 | | 3 |
3.125% due 2029 (Ê) | | 194 | | 199 |
4.375% due 2030 (Ê) | | 75 | | 77 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
GMAC Commercial Mortgage Securities, Inc.
Series 2001-C1 Class B
6.670% due 04/15/34 | | 985 | | 1,016 |
Series 2003-C3 Class A4
5.023% due 04/10/40 | | 218 | | 231 |
Series 2004-C3 Class A4
4.547% due 12/10/41 | | 1,525 | | 1,549 |
GMAC Mortgage Corp. Loan Trust
Series 2004-JR1 Class A6 (Ê)
0.713% due 12/25/33 | | 670 | | 652 |
Series 2005-AR2 Class 4A (Ê)
5.102% due 05/25/35 | | 7,014 | | 6,312 |
Series 2005-AR6 Class 3A1
5.287% due 11/19/35 | | 2,686 | | 2,320 |
Series 2007-HE3 Class 1A1
Interest Only STRIP
7.000% due 09/25/37 | | 1,021 | | 599 |
Series 2007-HE3 Class 2A1
Interest Only STRIP
7.000% due 09/25/37 | | 1,226 | | 667 |
Goldman Sachs Mortgage Securities Corp. II
Series 2007-GG1 Class A4
5.999% due 08/10/45 | | 10,075 | | 9,867 |
| Government National Mortgage Association | | | | |
Series 1998-23 Class ZA
6.500% due 09/20/28 | | 1,380 | | 1,507 |
Series 1999-27 Class SE (Ê)
Interest Only STRIP
8.344% due 08/16/29 | | 149 | | 28 |
Series 1999-40 Class FE (Ê)
0.806% due 11/16/29 | | 682 | | 688 |
Series 1999-44 Class SA (Ê)
Interest Only STRIP
8.294% due 12/16/29 | | 221 | | 37 |
Series 2000-29 Class S (Ê)
Interest Only STRIP
8.244% due 09/20/30 | | 23 | | 4 |
Series 2001-46 Class SA (Ê)
Interest Only STRIP
7.324% due 09/16/31 | | 20 | | 3 |
Series 2002-27 Class SA (Ê)
Interest Only STRIP
7.744% due 05/16/32 | | 32 | | 6 |
Series 2009-69 Class CN
5.000% due 11/20/38 | | 1,259 | | 1,276 |
Series 2009-93 Class D
5.000% due 10/20/39 | | 3,725 | | 3,691 |
Series 2009-93 Class DM
5.500% due 04/16/39 | | 3,568 | | 3,823 |
Greenpoint Mortgage Funding Trust (Ê)
Series 2006-AR6 Class A1A
0.343% due 10/25/46 | | 530 | | 493 |
Series 2006-AR8 Class 1A1A
0.343% due 01/25/47 | | 298 | | 280 |
Series 2007-AR3 Class A1
0.483% due 06/25/37 | | 5,067 | | 2,958 |
| | |
| Russell Strategic Bond Fund | | 137 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Greenpoint Mortgage Pass-Through Certificates (Ê)
Series 2003-1 Class A1
2.999% due 10/25/33 | | 1,029 | | 857 |
Greenwich Capital Commercial Funding Corp.
Series 2003-C2 Class A2
4.022% due 01/05/36 | | 206 | | 207 |
Series 2004-GG1 Class A7
5.317% due 06/10/36 | | 6,065 | | 6,414 |
Series 2005-GG3 Class A4
4.799% due 08/10/42 | | 100 | | 102 |
Series 2005-GG5 Class A41
5.243% due 04/10/37 | | 3,720 | | 3,843 |
Series 2006-GG7 Class A4
6.085% due 07/10/38 | | 10,790 | | 11,220 |
Series 2006-GG7 Class AM
6.085% due 07/10/38 | | 8,300 | | 7,648 |
Series 2007-GG9 Class A4
5.444% due 03/10/39 | | 20,110 | | 20,183 |
GS Mortgage Securities Corp. II
Series 2004-GG2 Class A3
4.602% due 08/10/38 | | 326 | | 329 |
Series 2006-GG6 Class A4
5.553% due 04/10/38 | | 5,030 | | 5,151 |
Series 2006-GG8 Class AAB
5.535% due 11/10/39 | | 2,735 | | 2,910 |
Series 2007-EOP Class A1 (Ê)(Þ)
0.339% due 03/06/20 | | 2,345 | | 2,264 |
GSMPS Mortgage Loan Trust (Þ)
Series 1998-1 Class A
8.000% due 09/19/27 | | 122 | | 123 |
Series 1998-3 Class A
7.750% due 09/19/27 | | 125 | | 121 |
Series 1999-3 Class A
8.000% due 08/19/29 | | 300 | | 291 |
Series 2005-RP1 Class 1A3
8.000% due 01/25/35 | | 1,227 | | 1,162 |
Series 2005-RP1 Class 1A4
8.500% due 01/25/35 | | 880 | | 833 |
Series 2006-RP1 Class 1A2
7.500% due 01/25/36 | | 737 | | 686 |
Series 2006-RP1 Class 1A3
8.000% due 01/25/36 | | 472 | | 444 |
GSR Mortgage Loan Trust
Series 2004-5 Class 3A2 (Ê)
4.664% due 05/25/34 | | 1,664 | | 1,666 |
Series 2004-7 Class 1A1
3.614% due 06/25/34 | | 413 | | 383 |
Series 2004-11 Class 1A1
3.752% due 09/25/34 | | 315 | | 275 |
Series 2004-12 Class 2A3
3.556% due 12/25/34 | | 326 | | 264 |
Series 2005-AR6 Class 2A1 (Ê)
2.948% due 09/25/35 | | 3,478 | | 3,387 |
Series 2005-AR7 Class 6A1
5.208% due 11/25/35 | | 2,401 | | 2,332 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-1F Class 5A2
Interest Only STRIP
6.000% due 02/25/36 | | 619 | | 172 |
Series 2006-3F Class 2A3
5.750% due 03/25/36 | | 5,412 | | 4,654 |
Series 2007-AR1 Class 1A1
3.693% due 03/25/37 | | 16,516 | | 10,668 |
Series 2007-AR1 Class B1
Interest Only STRIP
5.503% due 03/25/37 | | 1,856 | | 38 |
Harborview Mortgage Loan Trust
Series 2005-2 Class 2A1A (Ê)
Interest Only STRIP
0.476% due 05/19/35 | | 182 | | 115 |
Series 2005-4 Class 3A1
4.626% due 07/19/35 | | 1,698 | | 1,328 |
Series 2005-5 Class 2A1B (Ê)
Interest Only STRIP
0.546% due 07/19/45 | | 328 | | 109 |
Series 2005-10 Class 2A1A (Ê)
0.566% due 11/19/35 | | 2,132 | | 1,406 |
Series 2005-10 Class 2A1B (Ê)
Interest Only STRIP
0.636% due 11/19/35 | | 775 | | 312 |
Series 2005-14 Class 3A1A
5.316% due 12/19/35 | | 570 | | 453 |
Series 2005-15 Class 2A11 (Ê)
Interest Only STRIP
0.526% due 10/20/45 | | 1,156 | | 705 |
Series 2005-16 Class 2A1A (Ê)
Interest Only STRIP
0.496% due 01/19/36 | | 437 | | 259 |
Series 2005-16 Class 3A1B (Ê)
Interest Only STRIP
0.596% due 01/19/36 | | 894 | | 292 |
Series 2006-1 Class 2A1A (Ê)
0.496% due 03/19/36 | | 1,642 | | 984 |
Series 2006-7 Class 2A1A (Ê)
0.456% due 09/19/46 | | 1,568 | | 954 |
Series 2006-9 Class 2A1A (Ê)
0.466% due 11/19/36 | | 15,084 | | 9,451 |
Series 2006-10 Class 2A1A (Ê)
0.436% due 11/19/36 | | 2,346 | | 1,448 |
Series 2006-10 Class 2A1B (Ê)
0.496% due 11/19/36 | | 2,105 | | 617 |
Series 2006-12 Class 2A2B (Ê)
0.506% due 01/19/38 | | 4,754 | | 1,648 |
Series 2006-14 Class 2A1A (Ê)
0.406% due 01/25/47 | | 5,867 | | 3,488 |
Series 2006-14 Class 2A1B (Ê)
0.456% due 01/25/47 | | 1,614 | | 431 |
Series 2007-1 Class 2A1A (Ê)
0.386% due 04/19/38 | | 1,595 | | 904 |
Impac Secured Assets CMN Owner Trust (Ê)
Series 2005-2 Class A1
0.583% due 03/25/36 | | 840 | | 466 |
| | |
| 138 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-4 Class A2A
0.343% due 01/25/37 | | 28 | | 27 |
Indymac Index Mortgage Loan Trust
Series 2004-AR1 Class 2A
2.922% due 12/25/34 | | 111 | | 86 |
Series 2005-AR1 Class 1A1
3.067% due 08/25/35 | | 3,853 | | 2,452 |
Series 2005-AR2 Class 1A21
5.583% due 12/25/35 | | 874 | | 681 |
Series 2005-AR3 Class 1A1
2.874% due 01/25/36 | | 1,067 | | 708 |
Series 2006-AR1 Class 1A1A (Ê)
0.353% due 11/25/46 | | 73 | | 73 |
Series 2006-AR1 Class 1A4A (Ê)
0.433% due 11/25/46 | | 8,529 | | 3,477 |
Series 2006-AR2 Class A2 (Ê)
0.343% due 11/25/36 | | 664 | | 361 |
Series 2006-AR3 Class 2A1A (Ê)
0.433% due 01/25/37 | | 7,502 | | 4,028 |
Series 2006-AR4 Class A1B (Ê)
0.563% due 05/25/46 | | 5,064 | | 1,054 |
Series 2006-AR8 Class A2A3 (Ê)
0.383% due 07/25/46 | | 1,226 | | 1,229 |
Series 2006-AR9 Class 1A1
5.557% due 06/25/36 | | 8,489 | | 6,204 |
Series 2007-AR5 Class 1A1
5.449% due 05/25/37 | | 8,906 | | 5,042 |
JPMorgan Alternative Loan Trust
Series 2006-A4 Class A7
6.300% due 09/25/36 | | 15,975 | | 8,390 |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | |
Series 2001-CIB Class A2
6.044% due 11/15/35 | | 305 | | 310 |
Series 2001-CIB Class D
6.751% due 03/15/33 | | 140 | | 144 |
Series 2002-C2 Class A2
5.050% due 12/12/34 | | 12,000 | | 12,605 |
Series 2002-C2 Class B
5.211% due 12/12/34 | | 120 | | 124 |
Series 2003-C1 Class A2
4.985% due 01/12/37 | | 3,748 | | 3,951 |
Series 2004-LN2 Class A1
4.475% due 07/15/41 | | 3,471 | | 3,562 |
Series 2005-LDP Class A3A1
4.871% due 10/15/42 | | 4,125 | | 4,195 |
Series 2005-LDP Class A4
4.918% due 10/15/42 | | 1,595 | | 1,644 |
Series 2005-LDP Class X1 (Þ)
Interest Only STRIP
0.112% due 12/15/44 | | 899,435 | | 3,120 |
Series 2006-CB1 Class A4
5.814% due 06/12/43 | | 10,240 | | 10,750 |
5.552% due 05/12/45 | | 3,960 | | 4,056 |
Series 2006-LDP Class A3
5.336% due 05/15/47 | | 5,313 | | 5,240 |
Series 2006-LDP Class A3B
5.447% due 05/15/45 | | 3,675 | | 3,775 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-LDP Class A4
5.475% due 04/15/43 | | 6,575 | | 6,832 |
6.064% due 04/15/45 | | 5,405 | | 5,663 |
5.399% due 05/15/45 | | 3,705 | | 3,789 |
Series 2006-LDP Class AJ
5.874% due 04/15/45 | | 2,695 | | 2,178 |
Series 2007-CB1 Class A4
5.440% due 06/12/47 | | 7,000 | | 6,920 |
Series 2007-CB2 Class A4
5.794% due 02/12/51 | | 6,400 | | 6,517 |
Series 2007-CB2 Class AJ
6.097% due 02/12/51 | | 1,670 | | 1,204 |
Series 2007-LD1 Class A4
5.882% due 02/15/51 | | 400 | | 399 |
Series 2007-LDP Class A3
5.420% due 01/15/49 | | 200 | | 193 |
Series 2009-IWS Class A1 (Þ)
4.314% due 12/05/27 | | 2,821 | | 2,908 |
Series 2009-IWS Class A2 (Þ)
5.633% due 12/05/27 | | 4,680 | | 4,993 |
JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1 (Ê)
5.015% due 02/25/35 | | 621 | | 629 |
Series 2005-A4 Class 1A1
5.384% due 07/25/35 | | 1,621 | | 1,564 |
Series 2005-A4 Class 2A1
4.798% due 07/25/35 | | 4,474 | | 4,155 |
Series 2005-A6 Class 1A2
5.148% due 09/25/35 | | 2,650 | | 2,210 |
Series 2005-A8 Class 1A1
5.406% due 11/25/35 | | 5,231 | | 4,950 |
Series 2005-S3 Class 1A2
5.750% due 01/25/36 | | 330 | | 285 |
Series 2006-A2 Class 2A1
5.757% due 04/25/36 | | 372 | | 350 |
Series 2006-A3 Class 2A3
5.561% due 05/25/36 | | 845 | | 571 |
Series 2006-A6 Class 1A2
5.942% due 10/25/36 | | 334 | | 297 |
Series 2006-S4 Class A6
6.000% due 01/25/37 | | 160 | | 154 |
Series 2007-A1 Class 1A1 (Ê)
4.011% due 07/25/35 | | 525 | | 513 |
Series 2007-A1 Class 2A2 (Ê)
3.561% due 07/25/35 | | 959 | | 958 |
Series 2007-A1 Class 4A2 (Ê)
4.073% due 07/25/35 | | 468 | | 463 |
Series 2007-A1 Class 5A2 (Ê)
3.440% due 07/25/35 | | 905 | | 898 |
Series 2007-A1 Class B1
Interest Only STRIP
4.189% due 07/25/35 | | 155 | | 18 |
Series 2007-A4 Class 3A3
5.876% due 06/25/37 | | 6,848 | | 6,211 |
Series 2007-S3 Class 1A8
6.000% due 08/25/37 | | 13,356 | | 11,855 |
| | |
| Russell Strategic Bond Fund | | 139 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
LB-UBS Commercial Mortgage Trust
Series 2000-C4 Class A2
7.370% due 08/15/26 | | 169 | | 169 |
Series 2000-C4 Class B
7.480% due 07/15/32 | | 105 | | 106 |
Series 2000-C5 Class A2
6.510% due 12/15/26 | | 323 | | 328 |
Series 2001-C2 Class A2
6.653% due 11/15/27 | | 14,564 | | 15,054 |
Series 2002-C2 Class F
5.794% due 07/15/35 | | 939 | | 890 |
Series 2002-C2 Class G
5.873% due 07/15/35 | | 1,433 | | 1,217 |
Series 2002-C4 Class A5
4.853% due 09/15/31 | | 1,000 | | 1,053 |
Series 2003-C8 Class A2
4.207% due 11/15/27 | | 103 | | 104 |
Series 2004-C4 Class A2
4.567% due 06/15/29 | | 693 | | 704 |
Series 2006-C1 Class A4
5.156% due 02/15/31 | | 4,500 | | 4,626 |
Series 2006-C3 Class A4
5.661% due 03/15/39 | | 3,130 | | 3,205 |
Series 2006-C4 Class A4
5.882% due 06/15/38 | | 2,975 | | 3,141 |
Series 2007-C1 Class A3
5.398% due 02/15/40 | | 3,355 | | 3,516 |
Series 2007-C1 Class A4
5.424% due 02/15/40 | | 8,205 | | 8,106 |
Series 2007-C6 Class A4
5.858% due 07/15/40 | | 3,990 | | 3,993 |
Series 2007-C7 Class A3
5.866% due 09/15/45 | | 7,820 | | 7,791 |
Series 2007-C7 Class AM
6.374% due 09/15/45 | | 1,130 | | 969 |
Lehman Mortgage Trust
Series 2005-2 Class 2A3
5.500% due 12/25/35 | | 840 | | 762 |
Series 2005-3 Class 1A3
5.500% due 01/25/36 | | 3,450 | | 3,116 |
Series 2006-8 Class 2A1 (Ê)
0.683% due 12/25/36 | | 8,612 | | 4,483 |
Series 2007-8 Class 3A1
7.250% due 09/25/37 | | 14,497 | | 8,003 |
Lehman XS Trust (Ê)
Series 2007-4N Class 3A2A
1.213% due 03/25/47 | | 6,538 | | 3,527 |
Series 2007-7N Class 1A2
0.503% due 06/25/47 | | 10,111 | | 4,651 |
Series 2007-16N Class 2A2
1.113% due 09/25/47 | | 12,706 | | 7,413 |
Luminent Mortgage Trust (Ê)
Series 2006-1 Class A1
0.503% due 04/25/36 | | 1,703 | | 902 |
Series 2006-2 Class A1A
0.463% due 02/25/46 | | 3,142 | | 1,748 |
Series 2006-6 Class A1
0.463% due 10/25/46 | | 1,259 | | 761 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Master Specialized Loan Trust (Þ)
Series 2005-2 Class A2
5.150% due 07/25/35 | | 503 | | 473 |
MASTR Adjustable Rate Mortgages Trust
Series 2004-10 Class 2A2
3.326% due 10/25/34 | | 9 | | 3 |
Series 2005-1 Class B1
3.656% due 03/25/35 | | 1,134 | | 123 |
Series 2005-6 Class 7A1
5.332% due 06/25/35 | | 525 | | 459 |
Series 2005-7 Class 2A2
5.162% due 09/25/35 | | 1,827 | | 429 |
Series 2006-1 Class I2A3 (Ê)
1.203% due 01/25/47 | | 3,611 | | 1,716 |
Series 2006-2 Class 3A1
4.800% due 01/25/36 | | 421 | | 380 |
Series 2006-2 Class 4A1
4.980% due 02/25/36 | | 3,765 | | 3,611 |
Series 2006-OA2 Class 4A1B (Ê)
1.663% due 12/25/46 | | 12,728 | | 4,343 |
MASTR Alternative Loans Trust
Series 2003-4 Class B1
5.719% due 06/25/33 | | 1,494 | | 983 |
Series 2003-6 Class 3A1
8.000% due 09/25/33 | | 62 | | 62 |
Series 2004-10 Class 5A6
5.750% due 09/25/34 | | 2,155 | | 2,107 |
MASTR Asset Securitization Trust
Series 2003-7 Class 4A35 (Ê)
0.663% due 09/25/33 | | 955 | | 906 |
Series 2003-11 Class 6A8 (Ê)
0.763% due 12/25/33 | | 2,215 | | 2,059 |
Series 2004-4 Class 2A2 (Ê)
0.713% due 04/25/34 | | 323 | | 302 |
Series 2005-2 Class 1A1
5.250% due 11/25/35 | | 821 | | 750 |
Mastr Reperforming Loan Trust (Þ)
Series 2005-1 Class 1A5
8.000% due 08/25/34 | | 787 | | 761 |
Series 2005-2 Class 1A4
8.000% due 05/25/35 | | 1,325 | | 1,270 |
Mellon Residential Funding Corp. (Ê)
Series 2000-TBC Class A1
0.734% due 06/15/30 | | 732 | | 652 |
Merrill Lynch Alternative Note Asset (Ê)
Series 2007-OAR Class A1
0.453% due 07/25/47 | | 338 | | 187 |
Merrill Lynch Floating Trust (Ê)(Þ)
Series 2006-1 Class A1
0.407% due 06/15/22 | | 2,380 | | 2,225 |
Series 2008-LAQ Class A1
0.790% due 07/09/21 | | 4,799 | | 4,397 |
Merrill Lynch Mortgage Investors, Inc.
Series 2005-A10 Class A (Ê)
0.473% due 02/25/36 | | 620 | | 490 |
Series 2006-AF1 Class AF2B
6.250% due 08/25/36 | | 1,814 | | 1,422 |
| | |
| 140 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Merrill Lynch Mortgage Trust
Series 2002-MW1 Class J (Þ)
5.695% due 07/12/34 | | 740 | | 321 |
Series 2004-MKB Class A2
4.353% due 02/12/42 | | 845 | | 855 |
Series 2005-CIP Class A2
4.960% due 07/12/38 | | 73 | | 74 |
Series 2005-CIP Class AM
5.107% due 07/12/38 | | 2,430 | | 2,303 |
Series 2005-LC1 Class A4
5.291% due 01/12/44 | | 105 | | 110 |
Series 2006-C1 Class A4
5.655% due 05/12/39 | | 965 | | 1,005 |
Series 2006-C1 Class ASB
5.655% due 05/12/39 | | 240 | | 256 |
Series 2008-C1 Class A4
5.690% due 02/12/51 | | 4,871 | | 4,881 |
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-5 Class A4
5.378% due 08/12/48 | | 1,880 | | 1,783 |
Series 2007-6 Class A4
5.485% due 03/12/51 | | 900 | | 861 |
Series 2007-7 Class A4
5.747% due 06/12/50 | | 7,870 | | 7,652 |
Series 2007-8 Class A3
6.155% due 08/12/49 | | 1,100 | | 1,111 |
MLCC Mortgage Investors, Inc. (Ê)
Series 2004-HB1 Class A2
0.770% due 04/25/29 | | 211 | | 180 |
Series 2005-2 Class 3A
1.249% due 10/25/35 | | 241 | | 206 |
Series 2005-3 Class 5A
0.513% due 11/25/35 | | 1,143 | | 1,013 |
Morgan Stanley Capital I
Series 1999-FNV Class G (Þ)
6.120% due 03/15/31 | | 407 | | 407 |
Series 2004-IQ8 Class A3
4.500% due 06/15/40 | | 15 | | 15 |
Series 2005-HQ7 Class A4
5.378% due 11/14/42 | | 4,000 | | 4,192 |
Series 2005-IQ1 Class AAB
5.178% due 09/15/42 | | 4,115 | | 4,322 |
Series 2006-HQ1 Class A4
5.328% due 11/12/41 | | 1,975 | | 2,029 |
Series 2006-HQ9 Class A4
5.731% due 07/12/44 | | 4,089 | | 4,252 |
Series 2006-IQ1 Class A4
5.941% due 10/15/42 | | 10,000 | | 10,546 |
Series 2006-T23 Class A1
5.682% due 08/12/41 | | 46 | | 48 |
Series 2007-HQ1 Class A3
5.569% due 12/15/44 | | 2,015 | | 1,916 |
Series 2007-HQ1 Class D (Þ)
6.481% due 12/15/44 | | 2,092 | | 355 |
Series 2007-IQ1 Class A4
5.364% due 03/15/44 | | 4,921 | | 4,845 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
5.692% due 04/15/49 | | 1,950 | | 1,896 |
5.809% due 12/12/49 | | 8,460 | | 8,593 |
Series 2007-IQ1 Class AM
5.406% due 03/15/44 | | 3,000 | | 2,481 |
Morgan Stanley Dean Witter Capital I
Series 2001-FRM Class E (Þ)
6.691% due 07/12/16 | | 795 | | 815 |
Series 2001-PGM Class G (Þ)
7.691% due 03/11/16 | | 100 | | 105 |
Series 2001-TOP Class C
6.790% due 07/15/33 | | 840 | | 823 |
Series 2001-TOP Class E (Þ)
7.351% due 02/15/33 | | 380 | | 383 |
Series 2002-TOP Class B
6.080% due 01/15/39 | | 500 | | 528 |
Morgan Stanley Mortgage Loan Trust
Series 2006-2 Class 6A
6.500% due 02/25/36 | | 2,598 | | 2,081 |
| Morgan Stanley Reremic Trust (Þ) | | | | |
Series 2009-GG1 Class A4A
5.999% due 08/12/45 | | 400 | | 413 |
Series 2009-GG1 Class A4B
5.999% due 08/12/45 | | 8,790 | | 7,826 |
MortgageIT Trust (Ê)
Series 2006-1 Class 2A1B
0.543% due 04/25/36 | | 3,312 | | 927 |
Nomura Asset Acceptance Corp.
Series 2005-WF1 Class 2A2
4.786% due 03/25/35 | | 1,134 | | 1,050 |
Series 2006-AP1 Class A2
5.515% due 01/25/36 | | 6,360 | | 3,956 |
PHH Alternative Mortgage Trust (Ê)
Series 2007-3 Class A1
0.373% due 07/25/37 | | 2,986 | | 2,560 |
Prime Mortgage Trust
Series 2004-CL1 Class 1A1
6.000% due 02/25/34 | | 216 | | 221 |
Series 2004-CL1 Class 1A2 (Ê)
0.663% due 02/25/34 | | 99 | | 90 |
Series 2004-CL1 Class 2A2 (Ê)
0.663% due 02/25/19 | | 20 | | 19 |
RBSCF Trust (Å)
Series 2010-MB1 Class A2
3.686% due 04/15/24 | | 5,725 | | 5,780 |
RESI Finance, LP (Ê)(Þ)
Series 2003-D Class B3
1.550% due 12/10/35 | | 1,804 | | 1,063 |
Series 2003-D Class B4
1.750% due 12/10/35 | | 2,097 | | 1,097 |
Series 2007-B Class B5
1.354% due 04/15/39 | | 2,755 | | 28 |
Residential Accredit Loans, Inc.
Series 2003-QS1 Class A12 (Ê)
7.788% due 05/25/33 | | 4,627 | | 839 |
Series 2004-QS5 Class A1
4.600% due 04/25/34 | | 891 | | 862 |
Series 2004-QS5 Class A6 (Ê)
0.863% due 04/25/34 | | 303 | | 277 |
| | |
| Russell Strategic Bond Fund | | 141 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2004-QS8 Class A4 (Ê)
0.663% due 06/25/34 | | 1,536 | | 1,340 |
Series 2005-QA1 Class A41
5.676% due 09/25/35 | | 1,273 | | 955 |
Series 2005-QA8 Class NB3
5.474% due 07/25/35 | | 1,599 | | 1,122 |
Series 2005-QO4 Class 2A1 (Ê)
0.543% due 12/25/45 | | 2,008 | | 1,171 |
Series 2005-QS1 Class 2A1
6.000% due 09/25/35 | | 4,100 | | 3,168 |
Series 2005-QS1 Class 2A3
5.750% due 09/25/35 | | 9,501 | | 7,250 |
Series 2005-QS7 Class A1
5.500% due 06/25/35 | | 655 | | 555 |
Series 2006-QO1 Class 1A1 (Ê)
0.523% due 02/25/46 | | 440 | | 201 |
Series 2006-QO1 Class 2A1 (Ê)
0.533% due 02/25/46 | | 532 | | 231 |
Series 2006-QO1 Class A1 (Ê)
0.423% due 01/25/37 | | 644 | | 383 |
Series 2006-QS6 Class 1A13
6.000% due 06/25/36 | | 2,522 | | 1,789 |
Series 2007-QH9 Class A1
6.450% due 11/25/37 | | 14,246 | | 7,109 |
Series 2007-QO4 Class A1 (Ê)
0.463% due 05/25/47 | | 25,267 | | 14,631 |
Series 2007-QS6 Class A1 (Ê)
0.593% due 04/25/37 | | 15,006 | | 7,062 |
Residential Asset Mortgage Products, Inc.
Series 2004-SL1 Class A3
7.000% due 11/25/31 | | 21 | | 21 |
Series 2004-SL4 Class A3
6.500% due 07/25/32 | | 247 | | 248 |
Residential Asset Securitization Trust
Series 2003-A15 Class 1A2 (Ê)
0.713% due 02/25/34 | | 1,914 | | 1,703 |
Series 2005-A14 Class A5
5.500% due 12/25/35 | | 4,253 | | 3,355 |
Series 2006-A11 Class 1A4
6.250% due 10/25/36 | | 575 | | 320 |
Series 2007-A5 Class 2A3
6.000% due 05/25/37 | | 1,424 | | 1,013 |
Residential Funding Mortgage Securities I
Series 2003-S5 Class 1A2 (Ê)
0.713% due 11/25/18 | | 701 | | 696 |
Series 2003-S14 Class A5 (Ê)
0.663% due 07/25/18 | | 1,514 | | 1,231 |
Series 2003-S20 Class 1A7 (Ê)
0.763% due 12/25/33 | | 1 | | 1 |
Series 2005-SA4 Class 1A21
5.164% due 09/25/35 | | 1,986 | | 1,532 |
Series 2005-SA4 Class 2A1
5.213% due 09/25/35 | | 2,933 | | 2,576 |
Series 2005-SA4 Class 2A2
5.202% due 09/25/35 | | 3,334 | | 2,859 |
Series 2006-S10 Class 1A7
6.000% due 10/25/36 | | 3,000 | | 2,372 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-SA3 Class 3A1
6.036% due 09/25/36 | | 1,273 | | 980 |
Series 2006-SA4 Class 2A1
6.119% due 11/25/36 | | 851 | | 669 |
Series 2007-S5 Class A9
Interest Only STRIP
6.000% due 05/25/37 | | 875 | | 167 |
Series 2007-S9 Class 1A1
6.000% due 10/25/37 | | 3,698 | | 3,135 |
Resix Finance, Ltd. Credit-Linked Notes (Ê)(Þ)
Interest Only STRIP
Series 2003-D Class B7
6.000% due 12/10/35 | | 2,097 | | 765 |
Salomon Brothers Mortgage Securities VII, Inc.
Series 2001-C1 Class C
6.729% due 12/18/35 | | 105 | | 108 |
Series 2001-C2 Class C
6.842% due 11/13/36 | | 1,600 | | 1,658 |
SBA CMBS Trust (Þ)
Series 2006-1A Class B
5.451% due 11/15/36 | | 3,775 | | 3,918 |
Series 2006-1A Class D
5.852% due 11/15/36 | | 350 | | 363 |
Sequoia Mortgage Trust (Ê)
Series 2004-3 Class A
0.908% due 05/20/34 | | 1,822 | | 1,537 |
Structured Adjustable Rate Mortgage Loan Trust
Series 2004-5 Class 3A1
2.735% due 05/25/34 | | 2,158 | | 2,047 |
Series 2004-12 Class 3A2
2.581% due 09/25/34 | | 912 | | 825 |
Series 2004-16 Class 3A1
2.796% due 11/25/34 | | 4,175 | | 3,556 |
Series 2004-18 Class 5A
5.500% due 12/25/34 | | 456 | | 439 |
Series 2004-20 Class 3A1
2.776% due 01/25/35 | | 1,998 | | 1,564 |
Series 2005-7 Class 1A3
2.596% due 04/25/35 | | 1,174 | | 880 |
Series 2005-17 Class 3A1
5.114% due 08/25/35 | | 45 | | 35 |
Series 2005-19X Class 1A1 (Ê)
0.583% due 10/25/35 | | 571 | | 372 |
Series 2005-21 Class 7A1
5.993% due 11/25/35 | | 15,741 | | 13,195 |
Series 2005-22 Class 4A2
Interest Only STRIP
5.323% due 12/25/35 | | 146 | | 30 |
Series 2006-1 Class 2A3
Interest Only STRIP
5.633% due 02/25/36 | | 1,342 | | 134 |
Series 2006-5 Class 5A4
Interest Only STRIP
5.486% due 06/25/36 | | 323 | | 53 |
| | |
| 142 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-12 Class 2A1
5.759% due 01/25/37 | | 4,726 | | 3,108 |
Structured Asset Mortgage Investments, Inc. (Ê)
Series 2005-AR5 Class A3
0.506% due 07/19/35 | | 333 | | 316 |
Series 2005-AR8 Class A2
1.943% due 02/25/36 | | 2,906 | | 1,742 |
Series 2006-AR1 Class 2A1
0.493% due 02/25/36 | | 749 | | 460 |
Series 2006-AR1 Class 3A1
0.493% due 02/25/36 | | 597 | | 355 |
Series 2006-AR2 Class A2
0.573% due 02/25/36 | | 301 | | 88 |
Series 2006-AR5 Class 1A2
0.523% due 05/25/46 | | 560 | | 132 |
Series 2006-AR6 Class 1A3
0.453% due 07/25/46 | | 1,460 | | 781 |
Series 2006-AR7 Class A12
0.513% due 08/25/36 | | 4,847 | | 1,267 |
Series 2006-AR8 Class A1A
0.463% due 10/25/36 | | 7,167 | | 4,297 |
Series 2007-AR1 Class 1A2
0.463% due 01/25/37 | | 5,044 | | 1,459 |
Series 2007-AR4 Class A4A
0.443% due 09/25/47 | | 6,286 | | 3,602 |
Structured Asset Securities Corp.
Series 2003-26A Class 3A5
2.535% due 09/25/33 | | 2,498 | | 2,380 |
Series 2004-12H Class 1A
6.000% due 05/25/34 | | 297 | | 271 |
Series 2005-6 Class B2
5.311% due 05/25/35 | | 365 | | 35 |
Series 2005-14 Class 1A4 (Ê)
23.357% due 07/25/35 | | 1,527 | | 1,505 |
Suntrust Adjustable Rate Mortgage Loan Trust (Ê)
Series 2007-2 Class 3A3
5.692% due 04/25/37 | | 14,456 | | 12,127 |
Suntrust Alternative Loan Trust (Ê)
Series 2006-1F Class 3A
0.613% due 04/25/36 | | 1,209 | | 365 |
Thornburg Mortgage Securities Trust (Ê)
Series 2003-2 Class A1
0.943% due 04/25/43 | | 782 | | 735 |
Series 2006-5 Class A1
0.383% due 10/25/46 | | 4,206 | | 4,105 |
Series 2006-6 Class A1
0.373% due 11/25/46 | | 1,145 | | 1,120 |
Wachovia Bank Commercial Mortgage Trust
Series 2004-C14 Class A2
4.368% due 08/15/41 | | 5,007 | | 5,104 |
Series 2005-C16 Class A2
4.380% due 10/15/41 | | 1,436 | | 1,462 |
Series 2005-C20 Class A4
5.285% due 07/15/42 | | 4,215 | | 4,228 |
Series 2005-C20 Class A5
5.087% due 07/15/42 | | 60 | | 61 |
Series 2005-C21 Class A4
5.383% due 10/15/44 | | 5,500 | | 5,826 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2006-C28 Class A4
5.572% due 10/15/48 | | 120 | | 120 |
Series 2006-C29 Class E
5.516% due 11/15/48 | | 2,682 | | 606 |
Series 2006-WL7 Class A1 (Ê)(Þ)
0.427% due 09/15/21 | | 9,874 | | 8,845 |
Series 2007-C31 Class A4
5.509% due 04/15/47 | | 684 | | 656 |
Series 2007-WHL Class A1 (Ê)(Þ)
0.334% due 06/15/20 | | 3,222 | | 2,860 |
Washington Mutual Alternative Mortgage Pass-Through Certificates
Series 2005-4 Class CB11
5.500% due 06/25/35 | | 1,200 | | 922 |
Series 2006-1 Class 4CB
6.500% due 02/25/36 | | 13,792 | | 8,722 |
Series 2006-5 Class 3A2
6.000% due 07/25/36 | | 468 | | 323 |
Series 2006-AR2 Class A1A (Ê)
1.403% due 04/25/46 | | 1,510 | | 817 |
Series 2006-AR6 Class 1A (Ê)
0.453% due 07/25/46 | | 738 | | 387 |
Series 2006-AR8 Class 2A (Ê)
1.313% due 10/25/46 | | 2,524 | | 1,262 |
Series 2006-AR9 Class 2A (Ê)
1.303% due 11/25/46 | | 2,901 | | 1,364 |
Series 2007-OA1 Class 2A (Ê)
0.983% due 12/25/46 | | 20,240 | | 9,337 |
Series 2007-OA1 Class CA1C (Ê)
0.503% due 12/25/46 | | 3,032 | | 114 |
Washington Mutual Mortgage Pass Through Certificates
Series 2002-AR9 Class 1A (Ê)
1.863% due 08/25/42 | | 173 | | 131 |
Series 2003-S9 Class A2 (Ê)
0.813% due 10/25/33 | | 1,303 | | 1,286 |
Series 2004-AR1 Class A
2.785% due 03/25/34 | | 184 | | 182 |
Series 2004-AR3 Class A2
2.929% due 06/25/34 | | 2,373 | | 2,339 |
Series 2004-CB3 Class 1A
6.000% due 10/25/34 | | 305 | | 311 |
Series 2005-AR1 Class 1A1
4.817% due 10/25/35 | | 1,261 | | 1,192 |
5.048% due 12/25/35 | | 992 | | 975 |
Series 2005-AR1 Class A1A (Ê)
0.583% due 08/25/45 | | 1,019 | | 837 |
Series 2005-AR1 Class A1A1 (Ê)
0.553% due 10/25/45 | | 3,118 | | 2,612 |
0.523% due 11/25/45 | | 11,644 | | 9,676 |
0.533% due 12/25/45 | | 362 | | 286 |
Series 2005-AR1 Class A1A2 (Ê)
0.543% due 11/25/45 | | 901 | | 650 |
0.553% due 12/25/45 | | 874 | | 632 |
0.553% due 12/25/45 (Å) | | 543 | | 398 |
Series 2005-AR1 Class A1B1 (Ê)
0.513% due 11/25/45 | | 134 | | 134 |
0.513% due 12/25/45 | | 447 | | 445 |
Series 2005-AR6 Class B3 (Ê)(Å)
0.923% due 04/25/45 | | 1,713 | | 91 |
| | |
| Russell Strategic Bond Fund | | 143 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2005-AR8 Class 2A1A (Ê)
0.553% due 07/25/45 | | 857 | | 712 |
Series 2006-AR1 Class 1A1
5.905% due 09/25/36 | | 1,467 | | 1,231 |
Series 2006-AR1 Class 1A4
5.586% due 11/25/36 | | 6,469 | | 5,129 |
Series 2006-AR1 Class 2A (Ê)
3.114% due 09/25/46 | | 500 | | 375 |
Series 2006-AR1 Class 3A1A (Ê)
1.383% due 09/25/46 | | 1,310 | | 740 |
Series 2006-AR2 Class 1A1
5.271% due 03/25/37 | | 8,482 | | 7,161 |
Series 2006-AR7 Class 2A (Ê)
1.443% due 07/25/46 | | 8,706 | | 5,726 |
Series 2006-AR8 Class 1A5
5.837% due 08/25/46 | | 233 | | 48 |
Series 2006-AR8 Class 2A3 (Ê)
6.091% due 08/25/36 | | 162 | | 41 |
Series 2007-HY3 Class 4A1
5.310% due 03/25/37 | | 7,227 | | 6,499 |
Series 2007-HY3 Class 4B1
5.310% due 03/25/37 | | 1,761 | | 127 |
Series 2007-HY4 Class 1A1 (Ê)
5.446% due 04/25/37 | | 1,812 | | 1,374 |
Series 2007-OA2 Class 1A (Ê)
1.163% due 03/25/47 | | 2,121 | | 1,274 |
Wells Fargo Alternative Loan Trust
Series 2007-PA2 Class 1A1
6.000% due 06/25/37 | | 2,321 | | 1,886 |
Series 2007-PA6 Class A1
6.395% due 12/28/37 | | 11,151 | | 8,238 |
Wells Fargo Mortgage Backed Securities Trust
Series 2003-K Class 1A2 (Ê)
4.472% due 11/25/33 | | 417 | | 426 |
Series 2004-AA Class A1 (Ê)
4.986% due 12/25/34 | | 1,276 | | 1,290 |
Series 2004-CC Class A1 (Ê)
4.932% due 01/25/35 | | 2,188 | | 2,136 |
Series 2004-E Class A2 (Ê)
4.500% due 05/25/34 | | 290 | | 291 |
Series 2004-EE Class 2A1 (Ê)
3.086% due 12/25/34 | | 115 | | 114 |
Series 2004-H Class A1 (Ê)
4.538% due 06/25/34 | | 194 | | 193 |
Series 2004-I Class 1A1
3.337% due 07/25/34 | | 1,140 | | 1,122 |
Series 2004-T Class A1 (Ê)
3.151% due 09/25/34 | | 303 | | 304 |
Series 2005-12 Class 1A7
5.500% due 11/25/35 | | 1,801 | | 912 |
Series 2005-14 Class 2A1
5.500% due 12/25/35 | | 3,031 | | 2,890 |
Series 2005-17 Class 1A1
5.500% due 01/25/36 | | 1,697 | | 1,627 |
Series 2005-17 Class 1A2
5.500% due 01/25/36 | | 1,403 | | 655 |
Series 2005-18 Class 1A1
5.500% due 01/25/36 | | 6,731 | | 6,350 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2005-18 Class 2A10 (Ê)
21.771% due 01/25/36 | | 1,258 | | 1,379 |
Series 2005-AR1 Class 1A1 (Ê)
4.609% due 06/25/35 | | 1,026 | | 1,031 |
Series 2005-AR1 Class 2A1
2.999% due 10/25/35 | | 9,227 | | 8,526 |
Series 2005-AR1 Class A2 (Ê)
5.372% due 08/25/35 | | 4,449 | | 4,484 |
Series 2005-AR2 Class 2A2 (Ê)
2.879% due 03/25/35 | | 94 | | 89 |
Series 2005-AR5 Class 1A1 (Ê)
5.086% due 04/25/35 | | 6,828 | | 6,602 |
Series 2006-2 Class 2A3
5.500% due 03/25/36 | | 2,869 | | 2,572 |
Series 2006-2 Class 3A1
5.750% due 03/25/36 | | 7,906 | | 7,571 |
Series 2006-4 Class 1A8
5.750% due 04/25/36 | | 645 | | 606 |
Series 2006-4 Class 2A3
5.750% due 04/25/36 | | 612 | | 225 |
Series 2006-7 Class 2A1
6.000% due 06/25/36 | | 2,152 | | 1,910 |
Series 2006-10 Class A19
6.000% due 08/25/36 | | 1,488 | | 1,421 |
Series 2006-AR1 Class 1A2 (Ê)
5.886% due 09/25/36 | | 655 | | 164 |
Series 2006-AR1 Class 2A2
5.587% due 11/25/36 | | 603 | | 177 |
Series 2006-AR1 Class 2A4 (Ê)
5.958% due 10/25/36 | | 998 | | 230 |
Series 2006-AR1 Class 4A1 (Ê)
5.508% due 07/25/36 | | 4,103 | | 3,287 |
Series 2006-AR1 Class 5A1 (Ê)
5.491% due 07/25/36 | | 1,502 | | 1,282 |
Series 2006-AR1 Class A1
5.218% due 10/25/36 (Ê) | | 14,333 | | 11,990 |
5.519% due 12/25/36 | | 3,737 | | 3,453 |
Series 2006-AR1 Class A7
5.343% due 08/25/36 | | 2,856 | | 1,045 |
Series 2006-AR2 Class 2A1
4.950% due 03/25/36 | | 2,381 | | 2,224 |
Series 2006-AR4 Class 1A1 (Ê)
5.828% due 04/25/36 | | 2,140 | | 1,950 |
Series 2006-AR4 Class 2A1 (Ê)
5.724% due 04/25/36 | | 3,583 | | 3,275 |
Series 2006-AR5 Class 2A1 (Ê)
5.487% due 04/25/36 | | 613 | | 509 |
Series 2006-AR6 Class 7A1 (Ê)
5.105% due 03/25/36 | | 9,287 | | 8,896 |
Series 2007-8 Class 1A16
6.000% due 07/25/37 | | 744 | | 658 |
Series 2007-10 Class 2A5
6.250% due 07/25/37 | | 1,705 | | 1,549 |
Series 2007-11 Class A90
6.000% due 08/25/37 | | 2,037 | | 1,828 |
Series 2007-13 Class A1
6.000% due 09/25/37 | | 3,579 | | 3,531 |
Series 2007-14 Class 1A1
6.000% due 10/25/37 | | 4,645 | | 4,267 |
| | | | |
| | | | 3,125,168 |
| | | | |
| | |
| 144 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Municipal Bonds - 1.4% | | | | |
Chicago Transit Authority Revenue Bonds
6.300% due 12/01/21 | | 500 | | 533 |
6.899% due 12/01/40 | | 5,200 | | 5,830 |
City of Chicago Illinois General Obligation Unlimited (µ)
5.000% due 12/01/24 | | 17,715 | | 18,887 |
City of Colorado Springs Colorado Revenue Bonds
5.000% due 11/15/33 | | 200 | | 207 |
County of Clark Nevada Revenue Bonds
6.820% due 07/01/45 | | 1,200 | | 1,324 |
County of Cook Illinois General Obligation Unlimited (µ)
5.000% due 11/15/26 | | 15,000 | | 15,739 |
Iowa Tobacco Settlement Authority Revenue Bonds
6.500% due 06/01/23 | | 405 | | 346 |
Los Angeles Unified School District General Obligation Unlimited
6.758% due 07/01/34 | | 800 | | 866 |
Massachusetts Educational Financing Authority (Ê)
Series 2008-1 Class A1
1.266% due 04/25/38 | | 4,525 | | 4,551 |
Missouri Higher Education Loan Authority Revenue Bonds (Ê)
1.224% due 11/26/32 | | 7,000 | | 7,052 |
Municipal Electric Authority of Georgia Revenue Bonds
6.637% due 04/01/57 | | 6,010 | | 6,303 |
7.055% due 04/01/57 | | 4,545 | | 4,602 |
Public Power Generation Agency Revenue Bonds
7.242% due 01/01/41 | | 100 | | 102 |
San Diego Tobacco Settlement Revenue Funding Corp. Revenue Bonds
7.125% due 06/01/32 | | 1,125 | | 911 |
State of California General Obligation Unlimited
7.500% due 04/01/34 | | 4,725 | | 5,185 |
7.950% due 03/01/36 | | 4,435 | | 4,713 |
5.650% due 04/01/39 (Ê) | | 700 | | 744 |
7.550% due 04/01/39 | | 12,680 | | 14,000 |
7.625% due 03/01/40 | | 5,475 | | 6,084 |
State of Illinois General Obligation Unlimited
4.071% due 01/01/14 | | 600 | | 606 |
6.900% due 03/01/35 | | 1,000 | | 1,049 |
6.725% due 04/01/35 | | 600 | | 617 |
State of Louisiana Revenue Bonds (Ê)
3.000% due 05/01/43 | | 4,200 | | 4,235 |
Tobacco Settlement Finance Authority Revenue Bonds
7.467% due 06/01/47 | | 2,400 | | 1,949 |
Tobacco Settlement Financing Corp. Revenue Bonds
5.500% due 06/01/26 | | 1,500 | | 1,655 |
| | | | |
| | | | 108,090 |
| | | | |
| | | | | | |
| | | | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Non-US Bonds - 1.2% | | | | | | |
Asian Development Bank
6.000% due 01/20/15 | | AUD | | 3,090 | | 2,853 |
Brazil Notas do Tesouro Nacional Series F | | | | | | |
Series NTNF 10.000% due 01/01/17 | | BRL | | 6,850 | | 3,654 |
10.000% due 01/01/21 | | BRL | | 13,060 | | 6,710 |
Byggingarsjodur Verkamanna
Series 2 3.750% due 04/15/34 | | ISK | | 356,015 | | 2,809 |
Series 3 3.750% due 06/15/44 | | ISK | | 720,107 | | 5,697 |
Canadian Government Bond
2.000% due 12/01/14 | | CAD | | 4,000 | | 3,785 |
4.500% due 06/01/15 | | CAD | | 400 | | 422 |
4.000% due 06/01/16 | | CAD | | 4,075 | | 4,188 |
Colombia Government International Bond
7.750% due 04/14/21 | | COP | | 2,309,000 | | 1,251 |
Deutsche Bank AG (Å)
10.000% due 07/17/17 | | IDR | | 46,600,000 | | 5,724 |
Federative Republic of Brazil
12.500% due 01/05/22 | | BRL | | 2,500 | | 1,656 |
10.250% due 01/10/28 | | BRL | | 2,600 | | 1,513 |
French Treasury Note
2.500% due 01/15/15 | | EUR | | 2,900 | | 3,931 |
German Treasury Bills
4.000% due 01/04/18 | | EUR | | 3,290 | | 4,777 |
Hellas Telecommunications Luxembourg V (Ê)
Series REGS
4.644% due 10/15/12 | | EUR | | 1,890 | | 1,685 |
Impress Holdings BV (Ê)
Series REGS
3.769% due 09/15/13 | | EUR | | 875 | | 1,133 |
Indonesia Treasury Bond
Series FR52
10.500% due 08/15/30 | | IDR | | 9,248,000 | | 1,081 |
Inter-American Development Bank
6.500% due 08/20/19 | | AUD | | 4,455 | | 4,165 |
Mexican Bonos Series M 20
10.000% due 12/05/24 | | MXN | | 67,890 | | 6,666 |
Series MI10
9.000% due 12/20/12 | | MXN | | 165,380 | | 14,511 |
Mexican Bonos Desarr
7.250% due 12/15/16 | | MXN | | 55,300 | | 4,517 |
Mexico Government International Bond
6.050% due 01/11/40 | | MXN | | 4,660 | | 4,567 |
Republic of Colombia
9.850% due 06/28/27 | | COP | | 2,879,000 | | 1,832 |
Rhodia SA (Ê)
Series REGS
3.394% due 10/15/13 | | EUR | | 1,500 | | 1,977 |
UBS AG
5.850% due 12/31/17 | | EUR | | 4,690 | | 1,337 |
| | | | | | |
| | | | | | 92,441 |
| | | | | | |
| | |
| Russell Strategic Bond Fund | | 145 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| United States Government Agencies - 0.8% |
Fannie Mae
5.250% due 08/01/12 | | 2,290 | | 2,470 |
Federal Home Loan Banks
0.500% due 05/10/11 | | 11,150 | | 11,150 |
4.500% due 09/13/19 | | 18,700 | | 19,406 |
Federal Home Loan Mortgage Corp. (Ñ)
2.125% due 09/21/12 | | 5,185 | | 5,270 |
Federal National Mortgage Association (Ñ)
0.010% due 10/09/19 | | 16,500 | | 9,867 |
Freddie Mac
5.000% due 04/18/17 | | 4,600 | | 5,038 |
Small Business Administration Participation Certificates
Series 1997-20D Class 1
7.500% due 04/01/17 | | 898 | | 994 |
Tennessee Valley Authority
5.500% due 07/18/17 | | 3,000 | | 3,385 |
| | | | |
| | | | 57,580 |
| | | | |
| |
| United States Government Treasuries - 6.5% | | |
United States Treasury Principal Only STRIP
Zero coupon due 11/15/21 | | 21,842 | | 13,452 |
Zero coupon due 11/15/26 | | 3,400 | | 1,607 |
Zero coupon due 08/15/27 | | 4,100 | | 1,866 |
United States Treasury Inflation Indexed Bonds
2.000% due 01/15/16 (Æ) | | 5,045 | | 5,438 |
2.500% due 07/15/16 | | 6,439 | | 7,159 |
1.375% due 01/15/20 (Æ) | | 25,142 | | 25,364 |
2.375% due 01/15/25 | | 2,300 | | 2,504 |
2.000% due 01/15/26 | | 3,604 | | 3,740 |
1.750% due 01/15/28 (Æ) | | 40,220 | | 39,925 |
United States Treasury Notes
1.000% due 04/30/12 | | 4,260 | | 4,263 |
1.750% due 04/15/13 | | 445 | | 448 |
2.375% due 02/28/15 (Ñ) | | 127,773 | | 127,854 |
2.500% due 03/31/15 (Ñ) | | 15,195 | | 15,271 |
2.500% due 04/30/15 | | 23,000 | | 23,084 |
3.125% due 04/30/17 | | 14,700 | | 14,709 |
3.375% due 11/15/19 (Ñ) | | 65,835 | | 64,462 |
3.625% due 02/15/20 (Ñ) | | 53,430 | | 53,271 |
8.000% due 11/15/21 | | 16,065 | | 22,210 |
5.375% due 02/15/31 | | 100 | | 114 |
4.750% due 02/15/37 | | 3,600 | | 3,756 |
4.375% due 02/15/38 | | 100 | | 98 |
3.500% due 02/15/39 | | 8,500 | | 7,101 |
4.250% due 05/15/39 | | 5,550 | | 5,299 |
4.500% due 08/15/39 | | 5,140 | | 5,114 |
4.375% due 11/15/39 | | 13,700 | | 13,358 |
4.625% due 02/15/40 | | 33,190 | | 33,714 |
| | | | |
| | | | 495,181 |
| | | | |
| | |
Total Long-Term Investments
(cost $6,847,203) | | | | 6,736,926 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Common Stocks - 0.0% | | | | |
| Consumer Discretionary - 0.0% | | | | |
World Color Press, Inc. | | 20,202 | | 76 |
| | | | |
| | |
Total Common Stocks
(cost $—) | | | | 76 |
| | | | |
| | |
| Investments in Other Funds - 0.3% | | | | |
| Financial Services - 0.3% | | | | |
PIMCO Developing Local Markets Fund | | 3,525,943 | | 20,451 |
| | | | |
| | |
Total Investments in Other Funds
(cost $18,884) | | | | 20,451 |
| | | | |
| | |
| Preferred Stocks - 0.2% | | | | |
| Consumer Discretionary - 0.1% | | | | |
Motors Liquidation Co. (Ñ) | | 420,000 | | 3,591 |
| | | | |
| | |
| Financial Services - 0.1% | | | | |
DG Funding Trust (Å) | | 479 | | 3,895 |
Federal Home Loan Mortgage Corp. | | 479,700 | | 743 |
Federal National Mortgage Association | | 267,075 | | 361 |
JPMorgan Chase Capital XXIX (Æ) | | 81,600 | | 1,969 |
| | | | |
| | | | 6,968 |
| | | | |
| | |
Total Preferred Stocks
(cost $26,003) | | | | 10,559 |
| | | | |
| | |
| Warrants & Rights - 0.0% | | | | |
Charter Communications, Inc.(Æ) 2014 Warrants | | 13 | | 69 |
| | | | |
| | |
Total Warrants & Rights
(cost $72) | | | | 69 |
| | | | |
| | |
| Short-Term Investments - 12.2% | | | | |
Capmark Financial Group, Inc. (Ø)(Ñ)
3.114% due 05/10/10 | | 2,030 | | 741 |
Comerica Bank (Ê)
Series BKNT
0.350% due 05/10/10 | | 500 | | 500 |
Countrywide Financial Corp.
5.125% due 02/17/11 | | 100 | | 155 |
Credit Agricole
0.100% due 05/03/10 | | 27,110 | | 27,110 |
Credit Agricole SA (Ê)(Þ)
0.302% due 05/28/10 | | 2,700 | | 2,700 |
CSC Holdings LLC (Ñ)
Series B
7.625% due 04/01/11 | | 750 | | 781 |
DCP Midstream LLC
6.875% due 02/01/11 | | 110 | | 115 |
Developers Diversified Realty Corp.
5.000% due 05/03/10 (Ñ) | | 1,410 | | 1,410 |
4.625% due 08/01/10 | | 2,726 | | 2,733 |
5.250% due 04/15/11 | | 120 | | 121 |
Discover Financial Services (Ê)
Series WI
0.786% due 06/11/10 | | 4,155 | | 4,153 |
| | |
| 146 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Federal National Mortgage Association Discount Notes (ç)
Zero coupon due 08/09/10 | | 14,000 | | 13,992 |
Ford Motor Credit Co. LLC
7.875% due 06/15/10 (Ñ) | | 200 | | 201 |
8.625% due 11/01/10 | | 100 | | 103 |
7.375% due 02/01/11 (Ñ) | | 2,000 | | 2,047 |
Freddie Mac Discount Notes (ç)(ž)
0.200% due 07/01/10 | | 4,400 | | 4,399 |
0.200% due 07/08/10 | | 17,000 | | 16,994 |
0.240% due 08/17/10 | | 17,000 | | 16,990 |
General Electric Capital Corp. (Ñ)
Series GMTN
5.500% due 04/28/11 | | 400 | | 418 |
GMAC LLC
5.750% due 05/21/10 | | 400 | | 533 |
GMAC, Inc.
7.250% due 03/02/11 | | 5,375 | | 5,476 |
Goldman Sachs Group, Inc. (The)
4.500% due 06/15/10 | | 1,650 | | 1,655 |
HSBC Finance Corp.(Ê)
0.500% due 05/10/10 | | 1,300 | | 1,300 |
International Lease Finance Corp.
4.950% due 02/01/11 (Ñ) | | 3,200 | | 3,185 |
5.450% due 03/24/11 | | 1,790 | | 1,786 |
KeyBank NA (Ê)
Series BKNT
2.502% due 06/02/10 | | 4,100 | | 4,106 |
Keycorp (Ê)
0.860% due 11/22/10 | | 7,060 | | 8,977 |
Kraft Foods, Inc. (Ê)
0.928% due 08/11/10 | | 10,000 | | 10,010 |
Lehman Brothers Holdings, Inc. (Ø)
2.951% due 05/25/10 | | 1,300 | | 281 |
Marsh & McLennan Cos., Inc.
5.150% due 09/15/10 | | 650 | | 659 |
Metropolitan Life Global Funding I (Ê)(Þ)
0.290% due 05/17/10 | | 5,100 | | 5,100 |
Midamerican Funding LLC
6.750% due 03/01/11 | | 1,200 | | 1,259 |
Morgan Stanley (Ê)(Ñ)
2.350% due 05/14/10 | | 4,400 | | 4,402 |
National City Bank (Ê)
Series BKNT
0.366% due 06/18/10 | | 2,830 | | 2,830 |
National City Bank of Kentucky
Series BKNT
6.300% due 02/15/11 | | 705 | | 724 |
National City Corp.
0.427% due 06/16/10 (Ê) | | 460 | | 460 |
4.000% due 02/01/11 (Ñ) | | 3,800 | | 3,857 |
Nationwide Life Global Funding I (Ê)(Þ)
0.652% due 08/27/10 | | 545 | | 545 |
Nippon Life Insurance Co. (Þ)
4.875% due 08/09/10 | | 3,250 | | 3,273 |
Nisource Finance Corp.
7.875% due 11/15/10 | | 1,855 | | 1,921 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Nuveen Investments, Inc.
5.000% due 09/15/10 | | 6,550 | | 6,550 |
Protective Life Secured Trusts (Ê)
0.411% due 11/09/10 | | 4,600 | | 4,590 |
Reckson Operating Partnership, LP
5.150% due 01/15/11 | | 592 | | 596 |
Russell U.S. Cash Management Fund (£) | | 579,128,242 | | 579,128 |
SLM Corp.
0.476% due 07/26/10 (Ê) | | 1,250 | | 1,245 |
Series MTNA
4.500% due 07/26/10 | | 2,160 | | 2,170 |
Small Business Administration
Series 2000-P10 Class 1
7.449% due 08/01/10 | | 31 | | 31 |
Sprint Capital Corp.
7.625% due 01/30/11 | | 2,795 | | 2,868 |
Sprint Nextel Corp. (Ê)(Ñ)
0.688% due 06/28/10 | | 3,775 | | 3,763 |
Staples, Inc.
7.750% due 04/01/11 | | 1,005 | | 1,061 |
United States Treasury Bills (ç)(ž)
0.144% due 05/06/10 (§) | | 7,965 | | 7,965 |
0.060% due 05/13/10 (Ñ)(§) | | 55 | | 55 |
0.088% due 05/13/10 (§) | | 2,000 | | 2,000 |
0.152% due 05/13/10 (§) | | 34,000 | | 33,998 |
0.155% due 05/27/10 | | 33,503 | | 33,499 |
0.162% due 06/24/10 (§) | | 397 | | 397 |
0.168% due 07/08/10 | | 17,000 | | 16,995 |
0.137% due 07/15/10 | | 3,500 | | 3,499 |
0.218% due 08/26/10 (§) | | 51,000 | | 50,970 |
0.224% due 08/26/10 (§) | | 16,808 | | 16,798 |
UnitedHealth Group, Inc.
5.250% due 03/15/11 | | 20 | | 21 |
Yum! Brands, Inc.
8.875% due 04/15/11 | | 460 | | 490 |
| | | | |
| | |
Total Short-Term Investments
(cost $928,053) | | | | 926,691 |
| | | | |
| | |
| Repurchase Agreements - 4.8% | | | | |
Agreement with Bank of America Securities, LLC and State Street Bank (Tri-Party) of $177,200 dated April 30, 2010, at 0.200% to be repurchased at $177,203 on May 3, 2010 collateralized by: $180,005 par various United States Treasury Obligations, valued at $180,666 | | 177,200 | | 177,200 |
Agreement with Barclays Captial Inc. and State Street Bank (Tri-Party) of $11,400 dated April 30, 2010, at 0.200% to be repurchased at $11,400 on May 3, 2010 collateralized by: $11,584 par various United States Treasury Obligations, valued at $11,606 | | 11,400 | | 11,400 |
| | |
| Russell Strategic Bond Fund | | 147 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| | | | | |
Agreement with Deutsche Bank Securities Inc. and State Street Bank (Tri-Party) of $177,200 dated April 30, 2010, at 0.200% to be repurchased at $177,203 on May 3, 2010 collateralized by: $177,132 par various United States Treasury Obligations, valued at $180,176 | | 177,200 | | 177,200 | |
| | | | | |
| | |
Total Repurchase Agreements
(cost $365,800) | | | | 365,800 | |
| | | | | |
| | |
| Other Securities - 3.3% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 140,864,830 | | 140,865 | |
State Street Securities Lending Quality Trust (×) | | 109,219,312 | | 108,933 | |
| | | | | |
| | |
Total Other Securities
(cost $250,084) | | | | 249,798 | |
| | | | | |
| | |
Total Investments - 109.8%
(identified cost $8,436,099) | | | | 8,310,370 | |
| | |
Other Assets and Liabilities,
Net - (9.8%) | | | | (741,526 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 7,568,844 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 148 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | |
| Long Positions | | | | | | | | | |
Euro-Bobl Futures (Germany) | | 738 | | EUR | 87,202 | | 06/10 | | 1,357 |
Euro-Bund Futures (Germany) | | 98 | | EUR | 12,235 | | 06/10 | | 282 |
Eurodollar Futures (CME) | | 69 | | USD | 17,179 | | 05/10 | | (12) |
Eurodollar Futures (CME) | | 1,758 | | USD | 437,434 | | 06/10 | | 1,045 |
Eurodollar Futures (CME) | | 836 | | USD | 207,725 | | 09/10 | | 85 |
Eurodollar Futures (CME) | | 960 | | USD | 238,020 | | 12/10 | | 1,047 |
Eurodollar Futures (CME) | | 13 | | USD | 3,214 | | 03/11 | | 25 |
Long Gilt Bond (UK) | | 238 | | GBP | 27,594 | | 06/10 | | 644 |
Three Month Short Sterling Interest Rate Futures (UK) | | 132 | | GBP | 16,371 | | 06/10 | | 90 |
Three Month Short Sterling Interest Rate Futures (UK) | | 76 | | GBP | 9,414 | | 09/10 | | 5 |
Three Month Short Sterling Interest Rate Futures (UK) | | 76 | | GBP | 9,392 | | 12/10 | | 14 |
Ultra Long Term U.S. Treasury Bond Future | | 76 | | USD | 9,426 | | 06/10 | | 316 |
United States Treasury 2 Year Notes | | 1,858 | | USD | 404,260 | | 06/10 | | 775 |
United States Treasury 5 Year Notes | | 4,062 | | USD | 470,621 | | 06/10 | | 3,163 |
United States Treasury 10 Year Notes | | 3,652 | | USD | 430,593 | | 06/10 | | 4,993 |
United States Treasury 30 Year Bond | | 1,515 | | USD | 180,380 | | 06/10 | | 3,850 |
| | | | |
| Short Positions | | | | | | | | | |
Euro-Bund Futures (Germany) | | 30 | | EUR | 12 | | 05/10 | | (7) |
Euro-Bund Futures (Germany) | | 201 | | EUR | 25,095 | | 06/10 | | (509) |
Eurodollar Futures (CME) | | 84 | | USD | 20,901 | | 06/10 | | 22 |
Eurodollar Futures (CME) | | 84 | | USD | 20,872 | | 09/10 | | 19 |
Eurodollar Futures (CME) | | 87 | | USD | 21,571 | | 12/10 | | 5 |
Eurodollar Futures (CME) | | 84 | | USD | 20,769 | | 03/11 | | (7) |
Eurodollar Futures (CME) | | 84 | | USD | 20,704 | | 06/11 | | (21) |
Eurodollar Futures (CME) | | 84 | | USD | 20,638 | | 09/11 | | (33) |
Eurodollar Futures (CME) | | 84 | | USD | 20,572 | | 12/11 | | (40) |
Eurodollar Futures (CME) | | 84 | | USD | 20,514 | | 03/12 | | (45) |
Japanese 10 Year Mini Bond (Japan) | | 43 | | JPY | 6,006,240 | | 06/10 | | (438) |
Three Month Short Sterling Interest Rate Futures (UK) | | 729 | | GBP | 90,414 | | 06/10 | | 2 |
United States Treasury 2 Year Notes | | 207 | | USD | 45,039 | | 06/10 | | (121) |
United States Treasury 5 Year Notes | | 258 | | USD | 29,892 | | 06/10 | | (102) |
United States Treasury 10 Year Notes | | 278 | | USD | 32,778 | | 06/10 | | (242) |
United States Treasury 30 Year Bond | | 118 | | USD | 14,049 | | 06/10 | | (259) |
| | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | 15,903 |
| | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 149 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | |
Options Written
(Number of Contracts) | | Notional
Amount | | Market
Value
$ | |
| | | | | | | |
| Cross Currency | | | | | | | |
Jul 2010 90.00 Put (2) | | USD | | 15,800 | | (59 | ) |
| | | |
| Eurodollar Midcurve 1 Year Futures | | | | | | | |
Sep 2010 97.38 Put (1,647) | | USD | | 4,118 | | (299 | ) |
| | | |
| Inflationary Floor | | | | | | | |
Mar 2020 0.001 Put (3) | | USD | | 13,700 | | (96 | ) |
| | | |
| Swaptions | | | | | | | |
| (Fund Receives/Fund Pays) | | | | | | | |
USD Three Month LIBOR/USD
3.600% May 2010 0.00 Call (3) | | | | 14,800 | | (68 | ) |
USD Three Month LIBOR/USD
3.500%
Jun 2010 0.00 Call (3) | | | | 23,700 | | (114 | ) |
USD Three Month LIBOR/USD
3.250%
Aug 2010 0.00 Call (4) | | | | 74,000 | | (268 | ) |
USD Three Month LIBOR/USD
3.500%
Aug 2010 0.00 Call (2) | | | | 15,400 | | (129 | ) |
USD Three Month LIBOR/USD
3.250%
Oct 2010 0.00 Call (2) | | | | 17,300 | | (101 | ) |
USD Three Month LIBOR/USD
3.000%
Jan 2011 0.00 Call (1) | | | | 4,200 | | (207 | ) |
USD 4.100%/USD Three Month LIBOR
May 2010 0.00 Put (3) | | | | 14,800 | | (7 | ) |
USD 4.500%/USD Three Month LIBOR
Jun 2010 0.00 Put (3) | | | | 23,700 | | (8 | ) |
USD 4.500%/USD Three Month LIBOR
Aug 2010 0.00 Put (2) | | | | 15,400 | | (66 | ) |
USD 4.750%/USD Three Month LIBOR
Aug 2010 0.00 Put (4) | | | | 74,000 | | (163 | ) |
USD 5.500%/USD Three Month LIBOR
Aug 2010 0.00 Put (1) | | | | 20,000 | | (1 | ) |
USD 6.000%/USD Three Month LIBOR
Aug 2010 0.00 Put (2) | | | | 26,000 | | (1 | ) |
USD 5.000%/USD Three Month LIBOR
Oct 2010 0.00 Put (2) | | | | 17,300 | | (56 | ) |
USD 4.000%/USD Three Month LIBOR
Oct 2010 0.00 Put (2) | | | | 93,500 | | (414 | ) |
USD 5.000%/USD Three Month LIBOR
Jan 2011 0.00 Put (1) | | | | 25,300 | | (194 | ) |
USD 10.000%/USD Three Month LIBOR
Jul 2012 0.00 Put (1) | | | | 9,000 | | (7 | ) |
| | | | | | | |
Options Written
(Number of Contracts) | | Notional
Amount | | Market
Value
$ | |
| United States Treasury Notes | | | | | | | |
10 Year Futures | | | | | | | |
May 2010 118.00 Call (79) | | USD | | 79 | | (19 | ) |
May 2010 119.00 Call (36) | | USD | | 36 | | (22 | ) |
May 2010 114.00 Put (45) | | USD | | 45 | | (1 | ) |
May 2010 115.00 Put (70) | | USD | | 70 | | (3 | ) |
| | | | | | | |
| | | |
Total Liability for Options Written (premiums received $4,132) | | | | | | (2,303 | ) |
| | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 150 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Bank of America | | USD | | 2,922 | | JPY | | 273,120 | | 06/16/10 | | (13 | ) |
Bank of America | | USD | | 2,848 | | NZD | | 4,008 | | 06/16/10 | | 57 | |
Bank of America | | USD | | 253 | | PHP | | 11,525 | | 06/18/10 | | 5 | |
Bank of America | | CHF | | 7,065 | | USD | | 6,560 | | 06/16/10 | | (9 | ) |
Bank of America | | EUR | | 6,368 | | AUD | | 9,362 | | 06/16/10 | | 70 | |
Bank of America | | EUR | | 3,390 | | GBP | | 2,994 | | 06/16/10 | | 33 | |
Bank of America | | NZD | | 12,200 | | AUD | | 9,258 | | 06/16/10 | | (159 | ) |
Bank of America | | NZD | | 16,268 | | EUR | | 8,728 | | 06/16/10 | | (84 | ) |
Barclays Bank PLC | | USD | | 1,401 | | CNY | | 9,499 | | 06/07/10 | | (7 | ) |
Barclays Bank PLC | | USD | | 257 | | EUR | | 193 | | 05/24/10 | | — | |
Barclays Bank PLC | | USD | | 578 | | MYR | | 1,860 | | 06/14/10 | | 5 | |
Barclays Bank PLC | | USD | | 556 | | TWD | | 17,402 | | 06/10/10 | | 2 | |
Barclays Bank PLC | | AUD | | 1,565 | | USD | | 1,442 | | 05/20/10 | | (3 | ) |
Barclays Bank PLC | | EUR | | 6,258 | | NOK | | 50,484 | | 06/16/10 | | 104 | |
Barclays Bank PLC | | EUR | | 4,190 | | SEK | | 40,754 | | 06/16/10 | | 24 | |
Barclays Bank PLC | | EUR | | 1,000 | | USD | | 1,330 | | 05/20/10 | | (1 | ) |
Barclays Bank PLC | | EUR | | 18,519 | | USD | | 24,790 | | 07/26/10 | | 127 | |
Barclays Bank PLC | | JPY | | 535,814 | | CAD | | 5,772 | | 06/16/10 | | (12 | ) |
BNP Paribas | | JPY | | 60,571 | | USD | | 643 | | 05/06/10 | | (2 | ) |
Citibank | | USD | | 4,206 | | AUD | | 4,575 | | 06/16/10 | | 7 | |
Citibank | | USD | | 4,320 | | GBP | | 2,799 | | 06/16/10 | | (38 | ) |
Citibank | | USD | | 2,862 | | NOK | | 16,698 | | 06/16/10 | | (37 | ) |
Citibank | | USD | | 2,846 | | NZD | | 4,050 | | 06/16/10 | | 89 | |
Citibank | | AUD | | 9,516 | | EUR | | 6,400 | | 06/16/10 | | (120 | ) |
Citibank | | AUD | | 12,772 | | EUR | | 8,808 | | 06/16/10 | | (15 | ) |
Citibank | | CAD | | 5,884 | | AUD | | 6,302 | | 06/16/10 | | 5 | |
Citibank | | CAD | | 11,736 | | AUD | | 12,530 | | 06/16/10 | | (8 | ) |
Citibank | | CAD | | 5,880 | | EUR | | 4,186 | | 06/16/10 | | (108 | ) |
Citibank | | CHF | | 9,148 | | EUR | | 6,258 | | 06/16/10 | | (86 | ) |
Citibank | | EUR | | 4,244 | | AUD | | 6,296 | | 06/16/10 | | 73 | |
Citibank | | EUR | | 4,216 | | NOK | | 33,812 | | 06/16/10 | | 53 | |
Citibank | | EUR | | 4,244 | | NZD | | 8,068 | | 06/16/10 | | 98 | |
Citibank | | EUR | | 2,140 | | USD | | 2,855 | | 06/16/10 | | 5 | |
Citibank | | GBP | | 5,682 | | CHF | | 9,354 | | 06/16/10 | | 2 | |
Citibank | | JPY | | 31,446 | | USD | | 334 | | 05/06/10 | | (1 | ) |
Citibank | | JPY | | 254,380 | | USD | | 2,852 | | 06/16/10 | | 143 | |
Citibank | | NOK | | 17,453 | | USD | | 2,910 | | 06/16/10 | | (43 | ) |
Citibank | | NZD | | 3,839 | | USD | | 2,684 | | 06/16/10 | | (98 | ) |
Citibank | | SEK | | 84,438 | | EUR | | 8,766 | | 06/16/10 | | 7 | |
Credit Suisse First Boston | | USD | | 2,179 | | KRW | | 2,478,708 | | 07/28/10 | | 53 | |
Credit Suisse First Boston | | CHF | | 12,419 | | USD | | 11,664 | | 06/16/10 | | 117 | |
Credit Suisse First Boston | | EUR | | 4,235 | | USD | | 5,748 | | 06/16/10 | | 108 | |
Credit Suisse First Boston | | JPY | | 18,182 | | USD | | 193 | | 05/06/10 | | (1 | ) |
Credit Suisse First Boston | | JPY | | 30,219 | | USD | | 321 | | 05/06/10 | | (1 | ) |
Credit Suisse First Boston | | JPY | | 41,167 | | USD | | 437 | | 05/06/10 | | (1 | ) |
Credit Suisse First Boston | | JPY | | 60,582 | | USD | | 643 | | 05/06/10 | | (2 | ) |
Deutsche Bank | | USD | | 2,935 | | CHF | | 3,160 | | 06/16/10 | | 3 | |
Deutsche Bank | | USD | | 5,803 | | JPY | | 534,201 | | 06/16/10 | | (114 | ) |
Deutsche Bank | | USD | | 399 | | KRW | | 448,795 | | 07/28/10 | | 5 | |
Deutsche Bank | | USD | | 233 | | MXN | | 2,872 | | 07/07/10 | | (2 | ) |
Deutsche Bank | | USD | | 399 | | TWD | | 12,505 | | 06/10/10 | | 2 | |
Deutsche Bank | | CAD | | 2,656 | | USD | | 2,631 | | 05/04/10 | | 16 | |
Deutsche Bank | | EUR | | 2,156 | | USD | | 2,877 | | 06/16/10 | | 6 | |
Deutsche Bank | | GBP | | 2,510 | | USD | | 3,863 | | 05/20/10 | | 23 | |
Deutsche Bank | | JPY | | 57,651 | | USD | | 638 | | 06/16/10 | | 24 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 151 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Deutsche Bank | | SEK | | 41,222 | | EUR | | 4,234 | | 06/16/10 | | (27 | ) |
Deutsche Bank | | SGD | | 1,115 | | USD | | 799 | | 05/03/10 | | (15 | ) |
Goldman Sachs | | JPY | | 423,811 | | USD | | 4,554 | | 05/17/10 | | 42 | |
HSBC | | USD | | 2,826 | | AUD | | 3,125 | | 06/16/10 | | 52 | |
HSBC | | USD | | 3,535 | | BRL | | 6,388 | | 06/02/10 | | 119 | |
HSBC | | USD | | 2,682 | | CAD | | 2,683 | | 06/16/10 | | (40 | ) |
HSBC | | USD | | 5,715 | | EUR | | 4,225 | | 06/16/10 | | (89 | ) |
HSBC | | USD | | 11,498 | | EUR | | 8,430 | | 06/16/10 | | (272 | ) |
HSBC | | USD | | 5,717 | | JPY | | 530,483 | | 06/16/10 | | (68 | ) |
HSBC | | CHF | | 9,168 | | EUR | | 6,342 | | 06/16/10 | | (39 | ) |
HSBC | | CHF | | 3,077 | | USD | | 2,876 | | 06/16/10 | | 15 | |
HSBC | | EUR | | 4,230 | | CAD | | 5,966 | | 06/16/10 | | 120 | |
HSBC | | EUR | | 4,172 | | GBP | | 3,752 | | 06/16/10 | | 92 | |
HSBC | | EUR | | 4,198 | | GBP | | 3,778 | | 06/16/10 | | 94 | |
HSBC | | EUR | | 4,190 | | NOK | | 33,888 | | 06/16/10 | | 77 | |
HSBC | | EUR | | 17,760 | | NOK | | 143,688 | | 06/16/10 | | 328 | |
HSBC | | EUR | | 4,216 | | NZD | | 8,298 | | 06/16/10 | | 200 | |
HSBC | | EUR | | 10,041 | | USD | | 13,631 | | 05/20/10 | | 261 | |
HSBC | | EUR | | 4,257 | | USD | | 5,778 | | 06/16/10 | | 110 | |
HSBC | | GBP | | 1,874 | | USD | | 2,860 | | 06/16/10 | | (7 | ) |
HSBC | | JPY | | 536,878 | | CAD | | 5,774 | | 06/16/10 | | (16 | ) |
HSBC | | JPY | | 534,232 | | CHF | | 6,066 | | 06/16/10 | | (24 | ) |
HSBC | | NOK | | 27,312 | | SEK | | 32,752 | | 06/16/10 | | (49 | ) |
HSBC | | NOK | | 17,361 | | USD | | 2,859 | | 06/16/10 | | (78 | ) |
HSBC | | NZD | | 12,216 | | EUR | | 6,582 | | 06/16/10 | | (45 | ) |
HSBC | | SEK | | 82,654 | | EUR | | 8,530 | | 06/16/10 | | (27 | ) |
JP Morgan | | USD | | 769 | | AUD | | 847 | | 05/28/10 | | 12 | |
JP Morgan | | USD | | 2,852 | | CAD | | 2,990 | | 06/16/10 | | 92 | |
JP Morgan | | USD | | 1,318 | | EUR | | 1,000 | | 05/20/10 | | 13 | |
JP Morgan | | USD | | 2,152 | | EUR | | 1,600 | | 05/20/10 | | (22 | ) |
JP Morgan | | USD | | 784 | | SGD | | 1,115 | | 05/03/10 | | 29 | |
JP Morgan | | AUD | | 1,545 | | USD | | 1,433 | | 05/20/10 | | 6 | |
JP Morgan | | BRL | | 1,400 | | USD | | 778 | | 07/12/10 | | (15 | ) |
JP Morgan | | CAD | | 8,584 | | EUR | | 6,400 | | 06/16/10 | | 36 | |
JP Morgan | | CAD | | 11,706 | | EUR | | 8,520 | | 06/16/10 | | (89 | ) |
JP Morgan | | EUR | | 10,530 | | CHF | | 15,084 | | 06/16/10 | | 1 | |
JP Morgan | | EUR | | 4,340 | | GBP | | 3,814 | | 06/16/10 | | 27 | |
JP Morgan | | EUR | | 1,445 | | USD | | 1,926 | | 05/20/10 | | 1 | |
JP Morgan | | EUR | | 3,079 | | USD | | 4,079 | | 06/09/10 | | (21 | ) |
JP Morgan | | GBP | | 3,798 | | EUR | | 4,260 | | 06/16/10 | | (68 | ) |
JP Morgan | | JPY | | 536,624 | | EUR | | 4,216 | | 06/16/10 | | (50 | ) |
JP Morgan | | JPY | | 265,494 | | USD | | 2,856 | | 06/16/10 | | 29 | |
JP Morgan | | NZD | | 16,200 | | EUR | | 8,442 | | 06/16/10 | | (250 | ) |
Morgan Stanley | | USD | | 12,879 | | CAD | | 13,267 | | 06/16/10 | | 182 | |
Morgan Stanley | | JPY | | 60,395 | | USD | | 641 | | 05/06/10 | | (2 | ) |
Morgan Stanley | | NOK | | 34,062 | | EUR | | 4,226 | | 06/16/10 | | (67 | ) |
Royal Bank of Canada | | USD | | 349 | | EUR | | 265 | | 05/24/10 | | 3 | |
Royal Bank of Canada | | USD | | 2,989 | | JPY | | 270,261 | | 06/16/10 | | (111 | ) |
Royal Bank of Canada | | USD | | 5,833 | | JPY | | 548,853 | | 06/16/10 | | 12 | |
Royal Bank of Canada | | EUR | | 4,236 | | CAD | | 5,792 | | 06/16/10 | | 31 | |
Royal Bank of Canada | | EUR | | 4,252 | | CAD | | 5,814 | | 06/16/10 | | 31 | |
Royal Bank of Canada | | EUR | | 4,061 | | USD | | 5,511 | | 06/16/10 | | 103 | |
Royal Bank of Canada | | GBP | | 7,586 | | CHF | | 12,554 | | 06/16/10 | | 34 | |
Royal Bank of Canada | | GBP | | 3,778 | | EUR | | 4,222 | | 06/16/10 | | (78 | ) |
Royal Bank of Scotland | | USD | | 1,438 | | AUD | | 1,565 | | 05/20/10 | | 8 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 152 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Royal Bank of Scotland | | USD | | 4,101 | | CAD | | 4,090 | | 05/20/10 | | (74 | ) |
Royal Bank of Scotland | | USD | | 249 | | EUR | | 187 | | 05/24/10 | | — | |
Royal Bank of Scotland | | USD | | 5,737 | | EUR | | 4,253 | | 06/16/10 | | (73 | ) |
Royal Bank of Scotland | | USD | | 10 | | JPY | | 885 | | 05/17/10 | | — | |
Royal Bank of Scotland | | EUR | | 4,242 | | GBP | | 3,796 | | 06/16/10 | | 80 | |
Royal Bank of Scotland | | EUR | | 187 | | USD | | 249 | | 05/04/10 | | — | |
Royal Bank of Scotland | | EUR | | 1,557 | | USD | | 2,088 | | 06/16/10 | | 14 | |
Royal Bank of Scotland | | GBP | | 7,684 | | EUR | | 8,560 | | 06/16/10 | | (177 | ) |
Royal Bank of Scotland | | GBP | | 11,258 | | EUR | | 12,848 | | 06/16/10 | | (57 | ) |
Royal Bank of Scotland | | GBP | | 594 | | USD | | 895 | | 06/24/10 | | (13 | ) |
Royal Bank of Scotland | | JPY | | 48,060 | | USD | | 521 | | 05/17/10 | | 9 | |
State Street Bank and Trust Company | | CAD | | 8,718 | | CHF | | 9,364 | | 06/16/10 | | 62 | |
State Street Bank and Trust Company | | EUR | | 4,262 | | CAD | | 5,760 | | 06/16/10 | | (3 | ) |
State Street Bank and Trust Company | | EUR | | 11,834 | | SEK | | 114,642 | | 06/16/10 | | 36 | |
UBS | | USD | | 2,836 | | AUD | | 3,130 | | 06/16/10 | | 46 | |
UBS | | USD | | 2,641 | | CAD | | 2,656 | | 05/04/10 | | (26 | ) |
UBS | | USD | | 2,741 | | CHF | | 2,961 | | 06/16/10 | | 12 | |
UBS | | USD | | 5,715 | | GBP | | 3,746 | | 06/16/10 | | 16 | |
UBS | | USD | | 2,853 | | JPY | | 267,609 | | 06/16/10 | | (3 | ) |
UBS | | USD | | 5,833 | | JPY | | 542,014 | | 06/16/10 | | (61 | ) |
UBS | | AUD | | 3,145 | | USD | | 2,826 | | 06/16/10 | | (70 | ) |
UBS | | CAD | | 2,656 | | USD | | 2,641 | | 07/07/10 | | 26 | |
UBS | | CHF | | 6,129 | | USD | | 5,785 | | 06/16/10 | | 86 | |
UBS | | EUR | | 6,434 | | CHF | | 9,174 | | 06/16/10 | | (18 | ) |
UBS | | EUR | | 13,156 | | GBP | | 11,930 | | 06/16/10 | | 366 | |
UBS | | EUR | | 6,398 | | SEK | | 61,734 | | 06/16/10 | | 2 | |
UBS | | EUR | | 2,126 | | USD | | 2,853 | | 06/16/10 | | 22 | |
UBS | | EUR | | 2,134 | | USD | | 2,853 | | 06/16/10 | | 11 | |
UBS | | EUR | | 2,148 | | USD | | 2,854 | | 06/16/10 | | (7 | ) |
UBS | | EUR | | 4,173 | | USD | | 5,724 | | 06/16/10 | | 167 | |
UBS | | EUR | | 4,223 | | USD | | 5,749 | | 06/16/10 | | 126 | |
UBS | | EUR | | 4,256 | | USD | | 5,710 | | 06/16/10 | | 42 | |
UBS | | JPY | | 516,182 | | CAD | | 5,830 | | 06/16/10 | | 121 | |
UBS | | JPY | | 487,558 | | CHF | | 5,588 | | 06/16/10 | | 2 | |
UBS | | JPY | | 520,626 | | CHF | | 6,074 | | 06/16/10 | | 51 | |
UBS | | JPY | | 60,577 | | USD | | 643 | | 05/06/10 | | (2 | ) |
UBS | | JPY | | 93 | | USD | | 1 | | 05/17/10 | | — | |
UBS | | JPY | | 273,784 | | USD | | 2,935 | | 06/16/10 | | 19 | |
UBS | | NOK | | 34,844 | | SEK | | 41,420 | | 06/16/10 | | (87 | ) |
UBS | | SEK | | 42,899 | | USD | | 5,870 | | 06/16/10 | | (54 | ) |
Westpac Banking Corporation | | USD | | 2,928 | | GBP | | 1,924 | | 06/16/10 | | 15 | |
Westpac Banking Corporation | | USD | | 4,402 | | NZD | | 6,042 | | 06/16/10 | | (23 | ) |
Westpac Banking Corporation | | USD | | 20,373 | | NZD | | 29,001 | | 06/16/10 | | 647 | |
Westpac Banking Corporation | | AUD | | 16,174 | | USD | | 14,586 | | 06/16/10 | | (307 | ) |
Westpac Banking Corporation | | EUR | | 2,192 | | USD | | 2,915 | | 06/16/10 | | (5 | ) |
Westpac Banking Corporation | | EUR | | 4,240 | | NZD | | 8,150 | | 06/16/10 | | 130 | |
Westpac Banking Corporation | | JPY | | 264,530 | | USD | | 2,859 | | 06/16/10 | | 40 | |
| | | | | | | | | | | | | |
| |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | 1,981 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 153 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Interest Rate Swap Contracts | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Notional
Amount | | Fund Receives | | Fund Pays | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | |
Bank of America | | CAD | | 17,930 | | Canadian Dealer Offer Rate | | 1.958% | | 07/20/12 | | 153 | |
Bank of America | | CAD | | 4,220 | | 3.920% | | Canadian Dealer Offer Rate | | 07/20/20 | | (16 | ) |
Bank of America | | USD | | 21,000 | | 3.000% | | Three Month LIBOR | | 12/16/10 | | 546 | |
Barclays Bank PLC | | BRL | | 3,900 | | Brazil Interbank Deposit Rate | | 12.540% | | 01/02/12 | | 120 | |
Barclays Bank PLC | | BRL | | 800 | | 10.835% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (2 | ) |
Barclays Bank PLC | | EUR | | 29,930 | | 4.259% | | Six Month EURIBOR | | 04/23/20 | | 79 | |
Barclays Bank PLC | | EUR | | 8,970 | | Six Month EURIBOR | | 4.085% | | 04/23/40 | | (196 | ) |
Barclays Bank PLC | | GBP | | 10,710 | | Six Month LIBOR | | 3.470% | | 08/11/15 | | (213 | ) |
Barclays Bank PLC | | GBP | | 14,480 | | Six Month LIBOR | | 3.480% | | 08/16/15 | | (288 | ) |
Barclays Bank PLC | | GBP | | 21,540 | | Six Month LIBOR | | 3.410% | | 08/16/15 | | (321 | ) |
Barclays Bank PLC | | GBP | | 17,950 | | 4.175% | | Six Month LIBOR | | 08/11/20 | | 485 | |
Barclays Bank PLC | | GBP | | 24,260 | | 4.193% | | Six Month LIBOR | | 08/16/20 | | 690 | |
Barclays Bank PLC | | GBP | | 36,110 | | 4.156% | | Six Month LIBOR | | 08/16/20 | | 860 | |
Barclays Bank PLC | | GBP | | 8,980 | | Six Month LIBOR | | 4.420% | | 08/11/25 | | (282 | ) |
Barclays Bank PLC | | GBP | | 12,110 | | Six Month LIBOR | | 4.440% | | 08/16/25 | | (413 | ) |
Barclays Bank PLC | | GBP | | 18,080 | | Six Month LIBOR | | 4.420% | | 08/16/25 | | (554 | ) |
Barclays Bank PLC | | USD | | 1,200 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 57 | |
Barclays Bank PLC | | USD | | 6,658 | | Three Month LIBOR | | 4.633% | | 11/15/21 | | (882 | ) |
Barclays Bank PLC | | USD | | 3,338 | | Three Month LIBOR | | 4.540% | | 11/15/21 | | (394 | ) |
Barclays Bank PLC | | USD | | 1,032 | | Three Month LIBOR | | 4.420% | | 11/15/21 | | (102 | ) |
Barclays Bank PLC | | USD | | 1,018 | | Three Month LIBOR | | 4.524% | | 11/15/21 | | (116 | ) |
BNP Paribas | | BRL | | 4,500 | | 11.390% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (24 | ) |
BNP Paribas | | BRL | | 1,500 | | 11.880% | | One Month LIBOR | | 01/02/13 | | (9 | ) |
BNP Paribas | | BRL | | 1,700 | | 12.110% | | One Month LIBOR | | 01/02/14 | | (8 | ) |
BNP Paribas | | EUR | | 900 | | 2.090% | | Consumer Price Index (France) | | 10/15/10 | | 40 | |
Citibank | | AUD | | 26,400 | | 4.500% | | Three Month BBSW | | 06/15/11 | | (157 | ) |
Citibank | | EUR | | 28,000 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 1,095 | |
Citibank | | EUR | | 13,500 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 528 | |
Citibank | | EUR | | 29,930 | | 4.286% | | Six Month EURIBOR | | 04/23/20 | | 122 | |
Citibank | | EUR | | 2,200 | | 3.500% | | Six Month EURIBOR | | 06/16/20 | | 70 | |
Citibank | | EUR | | 8,980 | | Six Month EURIBOR | | 4.119% | | 04/23/40 | | (252 | ) |
Citibank | | USD | | 1,000 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 47 | |
Credit Suisse Financial Products | | GBP | | 20,360 | | Six Month LIBOR | | 3.510% | | 08/04/15 | | (484 | ) |
Credit Suisse Financial Products | | GBP | | 18,720 | | Six Month LIBOR | | 3.510% | | 08/05/15 | | (442 | ) |
Credit Suisse Financial Products | | GBP | | 11,730 | | Six Month LIBOR | | 3.450% | | 08/09/15 | | (220 | ) |
Credit Suisse Financial Products | | GBP | | 34,120 | | 4.155% | | Six Month LIBOR | | 08/04/20 | | 874 | |
Credit Suisse Financial Products | | GBP | | 31,370 | | 4.160% | | Six Month LIBOR | | 08/05/20 | | 819 | |
Credit Suisse Financial Products | | GBP | | 19,650 | | 4.133% | | Six Month LIBOR | | 08/09/20 | | 431 | |
Credit Suisse Financial Products | | GBP | | 17,060 | | Six Month LIBOR | | 4.372% | | 08/04/25 | | (412 | ) |
Credit Suisse Financial Products | | GBP | | 15,690 | | Six Month LIBOR | | 4.372% | | 08/05/25 | | (377 | ) |
Credit Suisse Financial Products | | GBP | | 9,830 | | Six Month LIBOR | | 4.355% | | 08/09/25 | | (201 | ) |
Credit Suisse Financial Products | | MXN | | 60,000 | | 7.340% | | Mexico Interbank 28 Day Deposit Rate | | 01/28/15 | | 80 | |
Deutsche Bank | | AUD | | 500 | | 4.500% | | Three Month BBSW | | 06/15/11 | | (3 | ) |
Deutsche Bank | | EUR | | 36,900 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 1,443 | |
Deutsche Bank | | KRW | | 5,951,000 | | 2.820% | | Korean Interbank Offer Rate | | 01/28/11 | | 2 | |
Deutsche Bank | | KRW | | 3,100,000 | | 3.870% | | Korean Interbank Offer Rate | | 06/12/11 | | 17 | |
Deutsche Bank | | KRW | | 15,700,000 | | 3.693% | | Korean Interbank Offer Rate | | 06/26/11 | | 101 | |
Deutsche Bank | | KRW | | 6,577,024 | | 3.620% | | Korean Interbank Offer Rate | | 07/06/11 | | 38 | |
Deutsche Bank | | KRW | | 10,988,604 | | 3.626% | | Three Month LIBOR | | 07/07/11 | | 65 | |
Deutsche Bank | | NZD | | 12,310 | | Three Month BBA | | 5.223% | | 04/16/15 | | 14 | |
Deutsche Bank | | NZD | | 5,210 | | Three Month BBA | | 5.235% | | 04/19/15 | | 4 | |
Deutsche Bank | | NZD | | 5,630 | | New Zealand Bank Bill Rate | | 5.220% | | 04/23/15 | | 7 | |
Deutsche Bank | | USD | | 5,540 | | 2.711% | | Three Month LIBOR | | 04/16/15 | | 34 | |
Deutsche Bank | | USD | | 2,410 | | 2.744% | | Three Month LIBOR | | 04/19/15 | | 18 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 154 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Interest Rate Swap Contracts | | | | | | | |
Counterparty | | Notional
Amount | | Fund Receives | | Fund Pays | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | |
Deutsche Bank | | USD | | 2,600 | | 2.700% | | Three Month LIBOR | | 04/23/15 | | 14 | |
Deutsche Bank | | USD | | 26,000 | | Three Month LIBOR | | 3.250% | | 06/16/17 | | 8 | |
Goldman Sachs | | BRL | | 4,500 | | 10.990% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (13 | ) |
Goldman Sachs | | BRL | | 22,200 | | 11.890% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (126 | ) |
Goldman Sachs | | EUR | | 3,500 | | 2.500% | | Six Month EURIBOR | | 06/16/15 | | 27 | |
Goldman Sachs | | USD | | 11,700 | | Six Month LIBOR | | Six Month LIBOR | | 05/25/10 | | 271 | |
HSBC | | BRL | | 2,200 | | 11.140% | | One Month LIBOR | | 01/02/12 | | 4 | |
HSBC | | BRL | | 3,100 | | 11.360% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 1 | |
HSBC | | BRL | | 17,200 | | 11.890% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (98 | ) |
HSBC | | BRL | | 800 | | 12.540% | | One Month LIBOR | | 01/02/14 | | 4 | |
JP Morgan | | BRL | | 1,500 | | 12.170% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (2 | ) |
JP Morgan | | BRL | | 3,700 | | 12.200% | | One Month LIBOR | | 01/02/14 | | (10 | ) |
JP Morgan | | CAD | | 19,080 | | Canadian Dealer Offer Rate | | 1.940% | | 08/03/12 | | 186 | |
JP Morgan | | CAD | | 4,490 | | 3.926% | | Canadian Dealer Offer Rate | | 08/03/20 | | (21 | ) |
JP Morgan | | KRW | | 5,785,000 | | 2.830% | | Korean Interbank Offer Rate | | 01/28/11 | | 3 | |
JP Morgan | | KRW | | 5,100,000 | | 3.900% | | Korean Interbank Offer Rate | | 06/15/11 | | 43 | |
JP Morgan | | KRW | | 15,360,000 | | 3.720% | | Korean Interbank Offer Rate | | 06/22/11 | | 104 | |
JP Morgan | | KRW | | 5,226,345 | | 3.660% | | Korean Interbank Offer Rate | | 07/08/11 | | 33 | |
Merrill Lynch | | BRL | | 300 | | 14.765% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 22 | |
Merrill Lynch | | BRL | | 4,800 | | 10.990% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (14 | ) |
Morgan Stanley | | EUR | | 1,700 | | 2.500% | | Six Month EURIBOR | | 06/16/15 | | 13 | |
Morgan Stanley | | USD | | 54,600 | | 3.000% | | Three Month LIBOR | | 12/16/10 | | 1,419 | |
Morgan Stanley | | USD | | 2,500 | | 4.000% | | Three Month LIBOR | | 06/16/15 | | 153 | |
Morgan Stanley | | USD | | 4,300 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 204 | |
Morgan Stanley | | USD | | 1,100 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 52 | |
Royal Bank of Canada | | CAD | | 29,780 | | Canadian Dealer Offer Rate | | 2.005% | | 07/15/12 | | 217 | |
Royal Bank of Canada | | CAD | | 22,380 | | Canadian Dealer Offer Rate | | 1.909% | | 07/26/12 | | 220 | |
Royal Bank of Canada | | CAD | | 22,300 | | Canadian Dealer Offer Rate | | 2.014% | | 07/29/12 | | 180 | |
Royal Bank of Canada | | CAD | | 23,490 | | Canadian Dealer Offer Rate | | 1.940% | | 08/03/12 | | 230 | |
Royal Bank of Canada | | CAD | | 6,950 | | 3.960% | | Canadian Dealer Offer Rate | | 07/15/20 | | — | |
Royal Bank of Canada | | CAD | | 5,260 | | 3.840% | | Canadian Dealer Offer Rate | | 07/26/20 | | (58 | ) |
Royal Bank of Canada | | CAD | | 5,250 | | 3.875% | | Canadian Dealer Offer Rate | | 07/29/20 | | (44 | ) |
Royal Bank of Canada | | CAD | | 5,480 | | 3.871% | | Canadian Dealer Offer Rate | | 08/03/20 | | (51 | ) |
Royal Bank of Scotland | | USD | | 325,500 | | 3.000% | | Three Month LIBOR | | 12/16/10 | | 8,461 | |
Royal Bank of Scotland | | USD | | 900 | | 4.000% | | Three Month LIBOR | | 12/16/14 | | 74 | |
UBS | | AUD | | 600 | | 4.500% | | Three Month LIBOR | | 06/15/11 | | (4 | ) |
UBS | | AUD | | 1,900 | | 6.000% | | Six Month BBSW | | 09/15/12 | | 14 | |
UBS | | BRL | | 3,800 | | 12.540% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 117 | |
UBS | | BRL | | 1,400 | | 10.575% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (38 | ) |
UBS | | BRL | | 3,400 | | 11.420% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (16 | ) |
UBS | | BRL | | 1,600 | | 12.070% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (4 | ) |
UBS | | BRL | | 1,700 | | 12.250% | | One Month LIBOR | | 01/02/14 | | (2 | ) |
| | | | | | | | | | | | | |
| | |
Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $6,370 | | | | 14,044 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 155 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | | | | | | | | | | |
| Corporate Issues | | | | | | | | | | | | | | | | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | | | |
Ally Financial | | Deutsche Bank | | 2.968% | | USD | | 6,800 | | 5.000% | | | 06/20/11 | | 161 | |
Ally Financial | | Goldman Sachs | | 1.842% | | USD | | 6,800 | | 2.500% | | | 09/27/10 | | 22 | |
American International Group | | Deutsche Bank | | 2.080% | | USD | | 10,300 | | 1.630% | | | 06/20/13 | | (99 | ) |
Berkshire Hathaway | | Deutsche Bank | | 0.800% | | USD | | 17,100 | | 1.000% | | | 03/20/13 | | 184 | |
Brazil Government International Bond | | Barclays Bank PLC | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Brazil Government International Bond | | Deutsche Bank | | 1.216% | | USD | | 1,300 | | 1.000% | | | 06/20/15 | | (13 | ) |
Brazil Government International Bond | | Deutsche Bank | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Brazil Government International Bond | | Goldman Sachs | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Brazil Government International Bond | | Morgan Stanley | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Centex Corporation | | Deutsche Bank | | 0.876% | | USD | | 4,275 | | (4.400% | ) | | 12/20/13 | | (550 | ) |
China Government International Bond | | Bank of America | | 0.650% | | USD | | 400 | | 1.000% | | | 06/20/15 | | 7 | |
China Government International Bond | | Bank of America | | 0.650% | | USD | | 1,100 | | 1.000% | | | 06/20/15 | | 19 | |
China Government International Bond | | Citibank | | 0.650% | | USD | | 300 | | 1.000% | | | 06/20/15 | | 5 | |
China Government International Bond | | Royal Bank of Scotland | | 0.650% | | USD | | 800 | | 1.000% | | | 06/20/15 | | 14 | |
Citigroup | | BNP Paribas | | 1.097% | | USD | | 100 | | 1.000% | | | 03/20/11 | | — | |
Citigroup | | Credit Suisse Financial Products | | 1.097% | | USD | | 300 | | 1.000% | | | 03/20/11 | | — | |
Citigroup | | Goldman Sachs | | 1.097% | | USD | | 200 | | 1.000% | | | 03/20/11 | | — | |
Citigroup | | UBS | | 1.097% | | USD | | 700 | | 1.000% | | | 03/20/11 | | (1 | ) |
Darden Rest, Inc. | | Citigroupglobal Markets, Inc. | | 0.726% | | USD | | 275 | | (2.730% | ) | | 03/20/14 | | (22 | ) |
Darden Restaurants, Inc. | | Deutsche Bank | | 0.726% | | USD | | 4,775 | | (2.250% | ) | | 03/20/14 | | (285 | ) |
Dr Horton Inc. | | Citibank | | 1.972% | | USD | | 1,200 | | (1.000% | ) | | 09/20/16 | | 65 | |
Dr Horton Inc. | | Deutsche Bank | | 1.972% | | USD | | 945 | | (1.000% | ) | | 09/20/16 | | 51 | |
Dr Horton Inc. | | Goldman Sachs | | 1.972% | | USD | | 945 | | (1.000% | ) | | 09/20/16 | | 51 | |
Federative Republic of Brazil | | UBS | | 0.987% | | USD | | 4,000 | | 1.190% | | | 08/20/13 | | 29 | |
Ford Motor Credit Co. | | Barclays Bank PLC | | 2.803% | | USD | | 700 | | 5.650% | | | 09/20/12 | | 49 | |
Ford Motor Credit Co. | | Goldman Sachs | | 2.803% | | USD | | 400 | | 3.850% | | | 09/20/12 | | 11 | |
France Government International Bond | | Bank of America | | 0.605% | | USD | | 700 | | 0.250% | | | 03/20/15 | | (12 | ) |
France Government International Bond | | Citibank | | 0.605% | | USD | | 800 | | 0.250% | | | 03/20/15 | | (13 | ) |
France Government International Bond | | Goldman Sachs | | 0.605% | | USD | | 600 | | 0.250% | | | 03/20/15 | | (10 | ) |
France Government International Bond | | Royal Bank of Scotland | | 0.605% | | USD | | 800 | | 0.250% | | | 03/20/15 | | (13 | ) |
Gaz Capital for Gazprom | | Barclays Bank PLC | | 1.747% | | USD | | 1,100 | | 1.600% | | | 12/20/12 | | 2 | |
Gaz Capital for Gazprom | | Morgan Stanley | | 1.775% | | USD | | 1,500 | | 2.480% | | | 02/20/13 | | 36 | |
Gaz Capital for Gazprom | | UBS | | 1.845% | | USD | | 4,000 | | 2.260% | | | 08/20/13 | | 57 | |
GE Capital Corporation | | Citibank | | 0.675% | | USD | | 5,500 | | 5.000% | | | 06/20/10 | | 37 | |
GE Capital Corporation | | Citibank | | 0.675% | | USD | | 400 | | 5.000% | | | 06/20/10 | | 2 | |
GE Capital Corporation | | Citibank | | 1.132% | | USD | | 600 | | 4.800% | | | 12/20/13 | | 80 | |
GE Capital Corporation | | Credit Suisse First Boston | | 0.725% | | USD | | 2,535 | | 6.550% | | | 12/20/10 | | 106 | |
Home Depot | | Citigroupglobal Markets, Inc. | | 0.487% | | USD | | 4,695 | | (2.670% | ) | | 03/20/14 | | (401 | ) |
Japan Government International Bond | | Bank of America | | 0.684% | | USD | | 300 | | 1.000% | | | 03/20/15 | | 4 | |
Japan Government International Bond | | Deutsche Bank | | 0.684% | | USD | | 100 | | 1.000% | | | 03/20/15 | | 1 | |
Japan Government International Bond | | JP Morgan | | 0.684% | | USD | | 600 | | 1.000% | | | 03/20/15 | | 8 | |
KB Home | | Citibank | | 2.915% | | USD | | 1,200 | | (1.000% | ) | | 09/20/16 | | 122 | |
Kohl’s | | Deutsche Bank | | 0.641% | | USD | | 1,505 | | (1.000% | ) | | 12/20/14 | | (24 | ) |
Kohl’s | | JP Morgan | | 0.641% | | USD | | 1,500 | | (1.000% | ) | | 12/20/14 | | (24 | ) |
Lowes | | Citigroupglobal Markets, Inc. | | 0.431% | | USD | | 4,900 | | (1.200% | ) | | 03/20/14 | | (149 | ) |
Metlife, Inc. | | Deutsche Bank | | 1.300% | | USD | | 8,500 | | 2.050% | | | 03/20/13 | | 234 | |
MetLife, Inc. | | Deutsche Bank | | 1.300% | | USD | | 2,300 | | (1.000% | ) | | 03/20/15 | | (77 | ) |
MetLife, Inc. | | Deutsche Bank | | 1.300% | | USD | | 1,300 | | (1.000% | ) | | 03/20/15 | | (43 | ) |
MetLife, Inc. | | Deutsche Bank | | 1.300% | | USD | | 1,200 | | (1.000% | ) | | 03/20/15 | | (41 | ) |
Metlife, Inc. | | UBS | | 1.300% | | USD | | 8,500 | | 2.050% | | | 03/20/13 | | 234 | |
Mexico Government International Bond | | JP Morgan | | 1.202% | | USD | | 2,600 | | 0.920% | | | 03/20/16 | | (36 | ) |
Prudential | | Citibank | | 1.902% | | USD | | 9,000 | | (1.000% | ) | | 09/20/16 | | 452 | |
Prudential | | Deutsche Bank | | 1.053% | | USD | | 8,500 | | 2.300% | | | 03/20/13 | | 331 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 156 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | | | | | | | | | | |
| Corporate Issues | | | | | | | | | | | | | | | | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | | | |
Prudential | | UBS | | 1.053% | | USD | | 8,500 | | 2.300% | | | 03/20/13 | | 243 | |
Republic of Indonesia | | UBS | | 0.559% | | USD | | 300 | | 1.300% | | | 09/20/10 | | 3 | |
Republic of Panama | | JP Morgan | | 1.211% | | USD | | 300 | | 1.250% | | | 01/20/17 | | 1 | |
SLM Corporation | | Deutsche Bank | | 3.842% | | USD | | 10,000 | | 5.000% | | | 12/20/13 | | 428 | |
Target Corp | | Credit Suisse First Boston | | 0.356% | | USD | | 1,500 | | (1.000% | ) | | 12/20/14 | | (43 | ) |
Target Corp | | Deutsche Bank | | 0.356% | | USD | | 1,505 | | (1.000% | ) | | 12/20/14 | | (43 | ) |
Target Corp. | | Credit Suisse First Boston | | 1.599% | | USD | | 3,065 | | (1.000% | ) | | 09/20/16 | | 104 | |
United Kingdom Gilt | | Deutsche Bank | | 0.735% | | USD | | 1,900 | | 1.000% | | | 12/20/14 | | 20 | |
United Kingdom Gilt | | JP Morgan | | 0.735% | | USD | | 100 | | 1.000% | | | 12/20/14 | | 1 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 1,000 | | 1.000% | | | 03/20/15 | | 11 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 1,900 | | 1.000% | | | 03/20/15 | | 21 | |
United Kingdom Gilt | | Morgan Stanley | | 0.735% | | USD | | 100 | | 1.000% | | | 12/20/14 | | 1 | |
United Kingdom Gilt | | Societe Generale | | 0.748% | | USD | | 5,000 | | 1.000% | | | 03/20/15 | | 57 | |
United Kingdom Gilt | | Societe Generale | | 0.748% | | USD | | 7,400 | | 1.000% | | | 03/20/15 | | 83 | |
Wachovia Corporation | | Royal Bank of Scotland | | 0.596% | | USD | | 300 | | 3.020% | | | 03/20/13 | | 28 | |
| | | | | | | | | | | | | | | | |
| | |
Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - ($1,092) | | | | | 1,456 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Credit Indices | | | | | | | | | | | | | | |
Reference
Entity | | Counterparty | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | |
ABX - HE Index for Sub-Prime Home Equity Sector | | Barclays Bank PLC | | USD | | 16,900 | | 0.760% | | | 01/25/38 | | (8,768 | ) |
ABX - HE Index for Sub-Prime Home Equity Sector | | JP Morgan | | USD | | 16,500 | | 0.090% | | | 08/25/37 | | (8,918 | ) |
ABX - HE Index for Sub-Prime Home Equity Sector | | JP Morgan | | USD | | 7,435 | | 0.170% | | | 05/25/46 | | (6,284 | ) |
CMBX AJ Index | | Bank of America | | USD | | 1,230 | | (0.840% | ) | | 10/12/52 | | 184 | |
CMBX AJ Index | | Bank of America | | USD | | 5,455 | | (0.840% | ) | | 10/12/52 | | 825 | |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 6,500 | | (0.840% | ) | | 10/12/52 | | 967 | |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 6,500 | | (0.840% | ) | | 10/12/52 | | 967 | |
CMBX AJ Index | | Credit Suisse First Boston | | USD | | 3,690 | | (0.840% | ) | | 10/12/52 | | 555 | |
CMBX AJ Index | | Credit Suisse First Boston | | USD | | 1,410 | | (0.840% | ) | | 10/12/52 | | 187 | |
Dow Jones CDX Index | | Barclays Bank PLC | | USD | | 5,600 | | 5.000% | | | 06/20/15 | | 726 | |
Dow Jones CDX Index | | Chase Securities Inc. | | USD | | 2,000 | | 1.120% | | | 12/20/12 | | 50 | |
Dow Jones CDX Index | | Citibank | | USD | | 4,911 | | 0.355% | | | 06/20/12 | | (8 | ) |
Dow Jones CDX Index | | Citibank | | USD | | 4,815 | | 0.360% | | | 06/20/12 | | (7 | ) |
Dow Jones CDX Index | | Citibank | | USD | | 1,059 | | 0.401% | | | 06/20/12 | | (1 | ) |
Dow Jones CDX Index | | Credit Suisse Financial Products | | USD | | 1,300 | | 5.000% | | | 06/20/15 | | 168 | |
Dow Jones CDX Index | | Deutsche Bank | | USD | | 9,163 | | 0.708% | | | 12/20/12 | | 162 | |
Dow Jones CDX Index | | Deutsche Bank | | USD | | 1,350 | | 0.530% | | | 06/20/13 | | 17 | |
Dow Jones CDX Index | | Deutsche Bank | | USD | | 1,400 | | 5.000% | | | 06/20/15 | | 179 | |
Dow Jones CDX Index | | Deutsche Bank | | USD | | 23,300 | | (1.000% | ) | | 06/20/15 | | (112 | ) |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 7,600 | | 1.120% | | | 12/20/12 | | 191 | |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 1,736 | | 0.463% | | | 06/20/13 | | 18 | |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 200 | | 5.000% | | | 06/20/15 | | 27 | |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 579 | | 0.548% | | | 12/20/17 | | 7 | |
Dow Jones CDX Index | | HSBC | | USD | | 2,000 | | 5.000% | | | 06/20/15 | | 258 | |
Dow Jones CDX Index | | JP Morgan | | USD | | 1,447 | | 0.553% | | | 12/20/17 | | 18 | |
Dow Jones CDX Index | | Merrill Lynch | | USD | | 19,254 | | 1.580% | | | 12/20/12 | | 508 | |
Dow Jones CDX Index | | Merrill Lynch | | USD | | 19,254 | | 1.640% | | | 12/20/12 | | 587 | |
| | | | | | | | | | | | | | |
| |
Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - ($18,518) | | (17,497 | ) |
| | | | | | | | | | | | | | |
| |
Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($19,610) | | (16,041 | ) |
| | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 157 |
Russell Investment Company
Russell Strategic Bond Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | Total | | |
| | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 707,254 | | | $ | 56 | | $ | 707,310 | | | 9.4 | |
Corporate Bonds and Notes | | | — | | | | 1,397,882 | | | | 7,083 | | | 1,404,965 | | | 18.6 | |
International Debt | | | — | | | | 712,488 | | | | 8,896 | | | 721,384 | | | 9.5 | |
Loan Agreements | | | — | | | | 24,799 | | | | 8 | | | 24,807 | | | 0.3 | |
Mortgage-Backed Securities | | | — | | | | 3,125,168 | | | | — | | | 3,125,168 | | | 41.3 | |
Municipal Bonds | | | — | | | | 108,090 | | | | — | | | 108,090 | | | 1.4 | |
Non-US Bonds | | | — | | | | 91,104 | | | | 1,337 | | | 92,441 | | | 1.2 | |
United States Government Agencies | | | — | | | | 57,580 | | | | — | | | 57,580 | | | 0.8 | |
United States Government Treasuries | | | — | | | | 495,181 | | | | — | | | 495,181 | | | 6.5 | |
Common Stocks | | | 76 | | | | — | | | | — | | | 76 | | | 0.0 | |
Investments in Other Funds | | | — | | | | — | | | | 20,451 | | | 20,451 | | | 0.3 | |
Preferred Stocks | | | 6,664 | | | | — | | | | 3,895 | | | 10,559 | | | 0.2 | |
Warrants & Rights | | | 69 | | | | — | | | | — | | | 69 | | | 0.0 | |
Short-Term Investments | | | — | | | | 926,691 | | | | — | | | 926,691 | | | 12.2 | |
Repurchase Agreements | | | — | | | | 365,800 | | | | — | | | 365,800 | | | 4.8 | |
Other Securities | | | — | | | | 249,798 | | | | — | | | 249,798 | | | 3.3 | |
| | | | | | | | | | | | | | | | | | |
Total Investments | | | 6,809 | | | | 8,261,835 | | | | 41,726 | | | 8,310,370 | | | 109.8 | |
| | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | (9.8 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 15,903 | | | | — | | | | — | | | 15,903 | | | 0.2 | |
Options Written | | | (402 | ) | | | (1,901 | ) | | | — | | | (2,303 | ) | | (— | )* |
Foreign Currency Exchange Contracts | | | — | | | | 1,981 | | | | — | | | 1,981 | | | — | * |
Interest Rate Swap Contracts | | | — | | | | 7,363 | | | | 311 | | | 7,674 | | | 0.1 | |
Credit Default Swaps | | | — | | | | (3,569 | ) | | | — | | | (3,569 | ) | | (— | )* |
| | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | 15,501 | | | | 3,874 | | | | 311 | | | 19,686 | | | | |
| | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending April 30, 2010 were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
| | |
| 158 | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | Foreign
Currency
Contracts | | Interest
Rate
Contracts |
| | | | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | | $ | 5,575 | | $ | — |
Daily variation margin on futures contracts* | | | — | | | — | | | 17,739 |
Interest rate swap contracts, at market value | | | — | | | — | | | 20,913 |
Credit default swap contracts, at market value | | | 9,976 | | | — | | | — |
| | | | | | | | | |
Total | | $ | 9,976 | | $ | 5,575 | | $ | 38,652 |
| | | | | | | | | |
| | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | $ | 3,594 | | $ | — |
Daily variation margin on futures contracts* | | | — | | | — | | | 1,836 |
Interest rate swap contracts, at market value | | | — | | | — | | | 6,869 |
Credit default swap contracts, at market value | | | 26,017 | | | — | | | — |
Options written, at market value | | | — | | | — | | | 2,303 |
| | | | | | | | | |
Total | | $ | 26,017 | | $ | 3,594 | | $ | 11,008 |
| | | | | | | | | |
The effect of the Fund’s derivative instruments on the Statement of Operations are as follows:
| | | | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | | Foreign
Currency
Contracts | | Interest
Rate
Contracts | |
| | | | | | | | | | | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | $ | 35,109 | |
Options Written | | | — | | | | — | | | 7,319 | |
Credit default swap contracts | | | (2,717 | ) | | | — | | | — | |
Interest rate swap contracts | | | — | | | | — | | | 11,681 | |
Foreign currency-related transactions | | | — | | | | 3,151 | | | — | |
| | | | | | | | | | | |
Total | | $ | (2,717 | ) | | $ | 3,151 | | $ | 54,109 | |
| | | | | | | | | | | |
| | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | $ | (6,358 | ) |
Options Written | | | — | | | | — | | | (865 | ) |
Credit default swap contracts | | | 10,317 | | | | — | | | — | |
Interest rate swap contracts | | | — | | | | — | | | (2,614 | ) |
Foreign currency-related transactions | | | — | | | | 3,434 | | | — | |
| | | | | | | | | | | |
Total | | $ | 10,317 | | | $ | 3,434 | | $ | (9,837 | ) |
| | | | | | | | | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 159 |
Russell Investment Company
Russell Investment Grade Bond Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,040.90 | | $ | 1,017.16 |
Expenses Paid During Period* | | $ | 7.79 | | $ | 7.70 |
| * | 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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,045.20 | | $ | 1,021.47 |
Expenses Paid During Period* | | $ | 3.40 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class I | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,046.50 | | $ | 1,022.66 |
Expenses Paid During Period* | | $ | 2.18 | | $ | 2.16 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.43% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,046.00 | | $ | 1,022.12 |
Expenses Paid During Period* | | $ | 2.74 | | $ | 2.71 |
| * | 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 one-half year period). |
| | |
| 160 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,046.70 | | $ | 1,023.01 |
Expenses Paid During Period* | | $ | 1.83 | | $ | 1.81 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.36% (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). |
| | |
| Russell Investment Grade Bond Fund | | 161 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Long-Term Investments - 77.6% | | | | |
| Asset-Backed Securities - 3.3% | | | | |
Aames Mortgage Investment Trust (Ê)(Þ)
Series 2005-3 Class A1
0.413% due 08/25/35 | | 153 | | 152 |
Accredited Mortgage Loan Trust (Ê)
Series 2004-2 Class A2
0.563% due 07/25/34 | | 122 | | 77 |
ACE Securities Corp. (Ê)
Series 2003-OP1 Class M2
1.763% due 12/25/33 | | 68 | | 57 |
Series 2005-SD3 Class A
0.663% due 08/25/45 | | 183 | | 171 |
Series 2006-HE4 Class A2A
0.323% due 10/25/36 | | 83 | | 52 |
Aegis Asset Backed Securities Trust (Ê)
Series 2003-3 Class M2
2.738% due 01/25/34 | | 318 | | 206 |
Ally Auto Receivables Trust (Þ)
Series 2009-A Class A2
1.320% due 03/15/12 | | 300 | | 301 |
Ameriquest Mortgage Securities, Inc. (Ê)
Series 2002-D Class M1
4.013% due 02/25/33 | | 155 | | 64 |
Series 2004-R10 Class A5
0.653% due 11/25/34 | | 2 | | 2 |
Series 2005-R10 Class A2B
0.483% due 12/25/35 | | 934 | | 873 |
Asset Backed Funding Certificates (Ê)
Series 2006-HE1 Class A2A
0.323% due 01/25/37 | | 84 | | 82 |
Asset Backed Securities Corp. Home Equity (Ê)
Series 2006-HE2 Class A1A
0.513% due 03/25/36 | | 1,346 | | 226 |
Avis Budget Rental Car Funding AESOP LLC (Þ) Series 2010-3A Class A
4.640% due 05/20/16 | | 460 | | 465 |
Bank of America Credit Card Trust (Ê)
Series 2007-A12 Class A12
0.454% due 01/15/13 | | 8,200 | | 8,202 |
Bayview Financial Acquisition Trust
Series 2006-A Class 1A3
5.865% due 02/28/41 | | 410 | | 307 |
Bear Stearns Asset Backed Securities Trust (Ê)
Series 2003-1 Class A1
0.763% due 11/25/42 | | 106 | | 92 |
Series 2003-SD1 Class A
0.713% due 12/25/33 | | 85 | | 74 |
Series 2005-2 Class A3
0.663% due 06/25/35 | | 2 | | 2 |
Series 2006-SD2 Class A2
0.463% due 06/25/36 | | 205 | | 195 |
Series 2007-HE5 Class 1A1
0.353% due 06/25/47 | | 31 | | 30 |
Series 2007-HE6 Class 1A1
1.513% due 08/25/37 | | 663 | | 425 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
BNC Mortgage Loan Trust (Ê)
Series 2007-2 Class A2
0.363% due 05/25/37 | | 137 | | 120 |
Business Loan Express (Ê)(Þ)
Series 2003-2A Class A
1.063% due 01/25/32 | | 224 | | 151 |
Carrington Mortgage Loan Trust (Ê)
Series 2005-NC5 Class A2
0.583% due 10/25/35 | | 142 | | 135 |
Series 2006-NC3 Class A3
0.413% due 08/25/36 | | 2,105 | | 938 |
Centex Home Equity (Ê)
Series 2006-A Class AV4
0.513% due 06/25/36 | | 1,700 | | 972 |
Citigroup Mortgage Loan Trust, Inc. (Ê)
Series 2006-SHL Class A1 (Þ)
0.463% due 11/25/45 | | 686 | | 538 |
Series 2007-AHL Class A3A
0.323% due 07/25/45 | | 200 | | 157 |
Series 2007-AMC Class A2A
0.323% due 05/25/37 | | 590 | | 536 |
Countrywide Asset-Backed Certificates
Series 2001-BC3 Class A (Ê)
0.743% due 12/25/31 | | 74 | | 39 |
Series 2004-AB2 Class M3 (Ê)
0.863% due 05/25/36 | | 310 | | 51 |
Series 2004-BC1 Class M1 (Ê)
1.013% due 02/25/34 | | 186 | | 169 |
Series 2005-17 Class 1AF3
5.711% due 05/25/36 | | 2,250 | | 793 |
Series 2005-4 Class MV1 (Ê)
0.723% due 10/25/35 | | 1,050 | | 1,012 |
Series 2006-11 Class 1AF4
6.300% due 09/25/46 | | 502 | | 161 |
Series 2006-3 Class 3A1 (Ê)
0.383% due 06/25/36 | | 227 | | 187 |
Series 2006-6 Class 2A2 (Ê)
0.443% due 09/25/36 | | 419 | | 338 |
Series 2006-BC1 Class 1A (Ê)
0.463% due 04/25/36 | | 834 | | 692 |
Series 2006-BC4 Class 2A2 (Ê)
0.423% due 11/25/36 | | 2,220 | | 1,693 |
Series 2007-7 Class 2A1 (Ê)
0.343% due 10/25/47 | | 84 | | 80 |
Countrywide Home Equity Loan
Trust (Ê)
Series 2005-A Class 2A
0.494% due 04/15/35 | | 167 | | 92 |
Series 2005-G Class 2A
0.484% due 12/15/35 | | 831 | | 311 |
Series 2006-E Class 2A
0.394% due 07/15/36 | | 602 | | 298 |
Series 2007-GW Class A
0.804% due 08/15/37 | | 1,072 | | 847 |
Credit-Based Asset Servicing and Securitization LLC
Series 2004-CB7 Class AF5
4.585% due 10/25/34 | | 550 | | 543 |
| | |
| 162 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2005-CB5 Class AV2 (Ê)
0.523% due 08/25/35 | | 106 | | 99 |
Series 2007-RP1 Class A (Ê)(Þ)
0.573% due 05/25/46 | | 1,012 | | 506 |
Daimler Chrysler Auto Trust (Ê)
Series 2008-B Class A2B
1.181% due 07/08/11 | | 72 | | 72 |
Series 2008-B Class A3B
1.731% due 09/10/12 | | 400 | | 403 |
Ellington Loan Acquisition Trust (Ê)(Þ)
Series 2007-1 Class A2A1
1.263% due 05/26/37 | | 585 | | 513 |
Series 2007-1 Class A2C
1.513% due 05/29/37 | | 1,000 | | 492 |
Series 2007-2 Class A2A
1.163% due 05/25/37 | | 1,004 | | 907 |
Fannie Mae Grantor Trust (Ê)
Series 2003-T4 Class 1A
0.483% due 09/26/33 | | 132 | | 120 |
Fannie Mae Whole Loan (Ê)
Series 2003-W5 Class A
0.483% due 04/25/33 | | 167 | | 144 |
Series 2003-W9 Class A
0.503% due 06/25/33 | | 259 | | 247 |
GE-WMC Mortgage Securities LLC (Ê)
Series 2006-1 Class A2A
0.303% due 08/25/36 | | 12 | | 4 |
GMAC Mortgage Corp. Loan Trust (Ê)
Series 2006-HE4 Class A1
0.443% due 12/25/36 | | 392 | | 206 |
GSAA Trust
Series 2006-2 Class 2A3 (Ê)
0.533% due 12/25/35 | | 570 | | 458 |
Series 2006-4 Class 1A2
5.870% due 03/25/36 | | 436 | | 47 |
GSAMP Trust (Ê)
Series 2003-HE2 Class M1
1.238% due 08/25/33 | | 105 | | 65 |
Series 2004-SEA Class A2B
0.813% due 03/25/34 | | 1,284 | | 1,235 |
Hertz Vehicle Financing LLC (Þ)
Series 2009-2A Class A2
5.290% due 03/25/16 | | 380 | | 402 |
HSBC Home Equity Loan Trust (Ê)
Series 2005-1 Class A
0.546% due 01/20/34 | | 405 | | 368 |
Series 2006-2 Class A1
0.406% due 03/20/36 | | 1,109 | | 1,043 |
Series 2006-4 Class A3V
0.406% due 03/20/36 | | 1,900 | | 1,751 |
Series 2007-1 Class AS
0.456% due 03/20/36 | | 1,853 | | 1,696 |
HSI Asset Securitization Corp. Trust (Ê)
Series 2006-HE2 Class 2A1
0.313% due 12/25/36 | | 40 | | 31 |
JPMorgan Mortgage Acquisition
Corp. (Ê)
Series 2007-CH1 Class AV4
0.393% due 10/25/36 | | 2,575 | | 2,126 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2007-CH3 Class A2
0.343% due 03/25/37 | | 232 | | 219 |
Klio Funding, Ltd. (Ê)(Þ)
Series 2004-1A Class A1
0.799% due 04/23/39 | | 3,135 | | 127 |
Lehman XS Trust (Ê)
Series 2005-1 Class 2A1
1.746% due 07/25/35 | | 362 | | 267 |
Series 2005-1 Class 2A2
1.746% due 07/25/35 | | 95 | | 61 |
Series 2005-5N Class 1A1
0.563% due 11/25/35 | | 429 | | 297 |
Series 2005-7N Class 1A1B
0.563% due 12/25/35 | | 336 | | 116 |
Series 2006-16N Class A1A
0.343% due 11/25/46 | | 62 | | 62 |
Long Beach Mortgage Loan Trust (Ê)
Series 2004-4 Class 1A1
0.543% due 10/25/34 | | 34 | | 29 |
Mastr Asset Backed Securities Trust (Ê)
Series 2003-WMC Class M2
2.738% due 08/25/33 | | 84 | | 48 |
Morgan Stanley ABS Capital I (Ê)
Series 2003-NC8 Class M3
3.413% due 09/25/33 | | 44 | | 10 |
Series 2005-WMC Class M1
0.733% due 01/25/35 | | 830 | | 812 |
Series 2006-HE7 Class A2A
0.313% due 09/25/36 | | 31 | | 31 |
Series 2007-HE2 Class A2B
0.353% due 01/25/37 | | 2,800 | | 1,357 |
Series 2007-HE6 Class A1
0.323% due 05/25/37 | | 94 | | 81 |
Morgan Stanley Mortgage Loan
Trust (Ê)
Series 2006-12X Class A1
0.383% due 10/25/36 | | 12 | | 12 |
MSDWCC Heloc Trust (Ê)
Series 2005-1 Class A
0.453% due 07/25/17 | | 66 | | 34 |
Nationstar Home Equity Loan Trust (Ê)
Series 2007-B Class 2AV1
0.383% due 04/25/37 | | 160 | | 152 |
Nelnet Student Loan Trust (Ê)
Series 2008-4 Class A4
1.796% due 04/25/24 | | 490 | | 517 |
New Century Home Equity Loan
Trust (Ê)
Series 2004-4 Class M2
0.793% due 02/25/35 | | 370 | | 251 |
Newcastle CDO, Ltd. (Þ)
Series 2004-4A Class 3FX
5.110% due 03/24/39 | | 1,117 | | 11 |
Option One Mortgage Loan Trust (Ê)
Series 2003-2 Class M2
2.813% due 04/25/33 | | 67 | | 20 |
Series 2003-3 Class M3
3.263% due 06/25/33 | | 107 | | 39 |
Series 2003-4 Class M2
2.738% due 07/25/33 | | 99 | | 31 |
| | |
| Russell Investment Grade Bond Fund | | 163 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2007-4 Class 2A1
0.353% due 04/25/37 | | 565 | | 552 |
Series 2007-6 Class 2A1
0.323% due 07/25/37 | | 241 | | 231 |
Origen Manufactured Housing
Series 2005-B Class A4
5.910% due 01/15/37 | | 100 | | 97 |
Series 2006-A Class A1 (Ê)
0.404% due 11/15/18 | | 207 | | 197 |
Ownit Mortgage Loan Asset Backed Certificates (Ê)
Series 2006-6 Class A2C
0.423% due 09/25/37 | | 2,390 | | 965 |
Park Place Securities, Inc. (Ê)
Series 2004-MHQ Class M1
0.963% due 12/25/34 | | 1,830 | | 1,764 |
Series 2004-WWF Class M1
0.893% due 12/25/34 | | 1,804 | | 1,791 |
Series 2005-WCW Class M1
0.713% due 09/25/35 | | 370 | | 236 |
Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.680% due 01/25/36 | | 248 | | 230 |
RAAC Series (Ê)(Þ)
Series 2006-RP2 Class A
0.513% due 02/25/37 | | 420 | | 276 |
Renaissance Home Equity Loan Trust
Series 2003-3 Class A (Ê)
0.763% due 12/25/33 | | 315 | | 268 |
Series 2005-1 Class M1
5.357% due 05/25/35 | | 172 | | 81 |
Series 2005-2 Class AF4
4.934% due 08/25/35 | | 585 | | 484 |
Series 2006-1 Class AF6
5.746% due 05/25/36 | | 295 | | 170 |
Residential Asset Mortgage Products, Inc.
Series 2003-RS1 Class AI6A
5.980% due 12/25/33 | | 208 | | 190 |
Series 2003-RS2 Class AII (Ê)
0.943% due 03/25/33 | | 88 | | 56 |
Series 2003-RS3 Class AII (Ê)
0.983% due 04/25/33 | | 55 | | 35 |
Residential Asset Securities Corp.
Series 2001-KS1 Class AI6
6.349% due 03/25/32 | | 470 | | 384 |
Series 2001-KS1 Class AII (Ê)
0.733% due 03/25/32 | | 39 | | 36 |
Series 2001-KS3 Class AII (Ê)
0.723% due 09/25/31 | | 38 | | 28 |
Series 2003-KS2 Class MI1
4.800% due 04/25/33 | | 273 | | 127 |
Series 2003-KS2 Class MI3
6.100% due 04/25/33 | | 103 | | 16 |
Series 2003-KS4 Class AIIB (Ê)
0.843% due 06/25/33 | | 139 | | 72 |
SACO I, Inc. (Ê)
Series 2005-WM3 Class A1
0.783% due 09/25/35 | | 53 | | 15 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Saxon Asset Securities Trust (Ê)
Series 2004-1 Class A
0.803% due 03/25/35 | | 57 | | 40 |
Security National Mortgage Loan
Trust (Ê)(Þ)
Series 2006-3A Class A1
0.543% due 01/25/37 | | 236 | | 218 |
Sierra Receivables Funding Co. (Ê)(Þ)
Series 2006-1A Class A2
0.406% due 05/20/18 | | 113 | | 104 |
SLM Student Loan Trust (Ê)
Series 2008-2 Class A1
0.616% due 01/25/15 | | 106 | | 106 |
Series 2008-6 Class A1
0.716% due 10/27/14 | | 666 | | 667 |
Small Business Administration Participation Certificates
Series 2003-20I Class 1
5.130% due 09/01/23 | | 52 | | 55 |
Soundview Home Equity Loan Trust (Ê)
Series 2006-WF2 Class A2C
0.403% due 12/25/36 | | 2,550 | | 2,072 |
Specialty Underwriting & Residential Finance (Ê)
Series 2003-BC1 Class A
0.943% due 01/25/34 | | 25 | | 19 |
Structured Asset Securities Corp.
Series 2002-AL1 Class A3
3.450% due 02/25/32 | | 333 | | 282 |
Series 2002-HF1 Class A (Ê)
0.553% due 01/25/33 | | 10 | | 9 |
Series 2006-BC3 Class A2 (Ê)
0.313% due 10/25/36 | | 74 | | 73 |
Series 2007-BC3 Class 2A2 (Ê)
0.403% due 05/25/47 | | 2,300 | | 1,488 |
Truman Capital Mortgage Loan
Trust (Ê)(Þ)
Series 2006-1 Class A
0.523% due 03/25/36 | | 868 | | 552 |
Wachovia Asset Securitization, Inc. (Ê)
Series 2003-HE3 Class A
0.513% due 11/25/33 | | 105 | | 71 |
Wells Fargo Home Equity Trust (Ê)
Series 2007-1 Class A1
0.363% due 03/25/37 | | 17 | | 17 |
| | | | |
| | | | 54,501 |
| | | | |
| |
| Corporate Bonds and Notes - 18.2% | | |
Abbott Laboratories
5.125% due 04/01/19 | | 1,050 | | 1,130 |
Air 2 US (Å)
8.027% due 10/01/19 | | 517 | | 468 |
Alcoa, Inc. (Ñ)
6.000% due 07/15/13 | | 30 | | 32 |
Allstate Life Global Funding Trusts
5.375% due 04/30/13 | | 400 | | 439 |
Altria Group, Inc.
8.500% due 11/10/13 | | 220 | | 259 |
9.700% due 11/10/18 | | 1,900 | | 2,389 |
9.250% due 08/06/19 | | 330 | | 408 |
| | |
| 164 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
9.950% due 11/10/38 | | 1,185 | | 1,605 |
10.200% due 02/06/39 | | 810 | | 1,116 |
American Airlines Pass Through
Trust 2009-1A (Ñ)
10.375% due 07/02/19 | | 993 | | 1,150 |
American Express Co.
7.000% due 03/19/18 | | 200 | | 229 |
8.125% due 05/20/19 | | 140 | | 171 |
6.800% due 09/01/66 (Ñ) | | 170 | | 167 |
American Express Credit Corp.
5.875% due 05/02/13 | | 2,400 | | 2,624 |
5.125% due 08/25/14 | | 710 | | 763 |
American General Finance Corp.
0.530% due 08/17/11 (Ê) | | 2,000 | | 1,839 |
6.900% due 12/15/17 | | 130 | | 109 |
American International Group, Inc.
5.050% due 10/01/15 (Ñ) | | 200 | | 189 |
5.850% due 01/16/18 (Ñ) | | 80 | | 74 |
6.250% due 03/15/87 | | 1,800 | | 1,377 |
Series WI
8.250% due 08/15/18 | | 1,760 | | 1,878 |
Anadarko Petroleum Corp.
5.950% due 09/15/16 | | 780 | | 866 |
6.450% due 09/15/36 | | 210 | | 218 |
6.200% due 03/15/40 | | 545 | | 552 |
Analog Devices, Inc.
5.000% due 07/01/14 | | 755 | | 802 |
Anheuser-Busch InBev Worldwide, Inc.
2.500% due 03/26/13 (Þ) | | 1,970 | | 1,980 |
5.375% due 01/15/20 | | 4,060 | | 4,245 |
5.000% due 04/15/20 (Þ) | | 70 | | 71 |
Apache Corp.
6.000% due 09/15/13 | | 460 | | 516 |
6.000% due 01/15/37 | | 200 | | 217 |
Appalachian Power Co.
Series O
5.650% due 08/15/12 | | 175 | | 189 |
ASIF Global Financing XIX (Þ)
4.900% due 01/17/13 | | 50 | | 51 |
AT&T, Inc.
5.100% due 09/15/14 | | 240 | | 262 |
5.800% due 02/15/19 (Ñ) | | 310 | | 337 |
6.550% due 02/15/39 | | 100 | | 107 |
BAE Systems Holdings, Inc. (Þ)
4.950% due 06/01/14 | | 710 | | 749 |
Baker Hughes, Inc.
7.500% due 11/15/18 | | 510 | | 621 |
Bank of America Capital Trust
XIV (ƒ)(Ñ)
5.630% due 12/31/49 | | 20 | | 15 |
Bank of America Capital Trust XV (Ê)
1.052% due 06/01/56 | | 1,300 | | 808 |
Bank of America Corp.
4.500% due 04/01/15 (Ñ) | | 9,200 | | 9,284 |
6.500% due 08/01/16 | | 1,195 | | 1,289 |
6.000% due 09/01/17 | | 655 | | 680 |
5.750% due 12/01/17 | | 950 | | 971 |
7.625% due 06/01/19 (Ñ) | | 750 | | 856 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series MTNL
5.650% due 05/01/18 | | 2,310 | | 2,338 |
Bank of America NA
Series BKNT
0.537% due 06/15/16 (Ê) | | 1,200 | | 1,085 |
0.557% due 06/15/17 (Ê) | | 1,340 | | 1,175 |
6.100% due 06/15/17 | | 1,500 | | 1,562 |
6.000% due 10/15/36 (Ñ) | | 300 | | 280 |
BankAmerica Capital III (Ê)
Series *
0.873% due 01/15/27 | | 700 | | 520 |
BB&T Corp.
3.850% due 07/27/12 | | 740 | | 773 |
Bear Stearns Cos. LLC (The)
6.400% due 10/02/17 (Ñ) | | 1,020 | | 1,128 |
7.250% due 02/01/18 | | 425 | | 490 |
BellSouth Corp.
4.750% due 11/15/12 | | 20 | | 21 |
BellSouth Telecommunications, Inc.
7.000% due 12/01/95 | | 685 | | 723 |
Berkshire Hathaway, Inc.
3.200% due 02/11/15 | | 660 | | 673 |
Boeing Capital Corp.
4.700% due 10/27/19 | | 120 | | 123 |
Boeing Co. (The)
4.875% due 02/15/20 | | 760 | | 794 |
Boston Properties, LP
5.625% due 11/15/20 | | 755 | | 775 |
Burlington Northern and Santa Fe
Railway Co. 2005-4 Pass Through Trust
4.967% due 04/01/23 | | 168 | | 183 |
Burlington Northern Santa Fe LLC
6.875% due 12/01/27 | | 90 | | 100 |
CareFusion Corp.
4.125% due 08/01/12 | | 600 | | 627 |
Carolina Power & Light Co.
6.500% due 07/15/12 | | 5 | | 5 |
Caterpillar Financial Services Corp.
6.200% due 09/30/13 | | 650 | | 734 |
Cellco Partnership / Verizon Wireless Capital LLC 2.851% due
05/20/11 (Ê) | | 1,100 | | 1,129 |
8.500% due 11/15/18 | | 100 | | 127 |
CenterPoint Energy Houston Electric LLC
Series J2 5.700% due 03/15/13 | | 350 | | 385 |
CenterPoint Energy Resources Corp.
6.125% due 11/01/17 | | 125 | | 136 |
Series B
7.875% due 04/01/13 | | 745 | | 855 |
Citibank NA
1.875% due 06/04/12 (Ñ) | | 100 | | 101 |
Series FXD
1.875% due 05/07/12 | | 600 | | 609 |
Citicorp (Ñ)
7.250% due 10/15/11 | | 460 | | 491 |
Citigroup Capital XXI
8.300% due 12/21/57 | | 1,000 | | 1,000 |
Citigroup Funding, Inc.
1.875% due 10/22/12 | | 700 | | 707 |
2.250% due 12/10/12 (Ñ) | | 300 | | 306 |
| | |
| Russell Investment Grade Bond Fund | | 165 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Citigroup, Inc.
2.125% due 04/30/12 | | 1,500 | | 1,530 |
5.500% due 08/27/12 | | 500 | | 525 |
5.625% due 08/27/12 | | 300 | | 316 |
5.300% due 10/17/12 | | 200 | | 210 |
5.500% due 04/11/13 | | 675 | | 713 |
5.850% due 07/02/13 | | 100 | | 107 |
6.500% due 08/19/13 | | 1,455 | | 1,574 |
5.000% due 09/15/14 | | 1,840 | | 1,863 |
5.500% due 10/15/14 | | 160 | | 166 |
6.010% due 01/15/15 | | 380 | | 405 |
6.000% due 08/15/17 | | 300 | | 311 |
6.125% due 11/21/17 | | 1,980 | | 2,057 |
6.125% due 05/15/18 | | 670 | | 695 |
8.500% due 05/22/19 (Ñ) | | 2,115 | | 2,497 |
6.125% due 08/25/36 | | 500 | | 455 |
6.875% due 03/05/38 | | 1,650 | | 1,733 |
8.125% due 07/15/39 | | 2,725 | | 3,248 |
Clorox Co.
5.450% due 10/15/12 | | 445 | | 485 |
Columbus Southern Power Co.
Series C 5.500% due 03/01/13 | | 85 | | 92 |
Comcast Cable Holdings LLC
9.800% due 02/01/12 | | 715 | | 809 |
Comcast Corp.
6.500% due 01/15/15 | | 1,050 | | 1,190 |
6.300% due 11/15/17 (Ñ) | | 1,125 | | 1,247 |
5.875% due 02/15/18 | | 880 | | 949 |
5.150% due 03/01/20 (Ñ) | | 360 | | 367 |
6.500% due 11/15/35 | | 350 | | 369 |
6.550% due 07/01/39 (Ñ) | | 1,050 | | 1,111 |
ConocoPhillips
5.900% due 05/15/38 | | 60 | | 64 |
ConocoPhillips Holding Co.(Ñ)
6.950% due 04/15/29 | | 715 | | 857 |
Continental Airlines 2007-1
Class A Pass Through Trust
Series 071A
5.983% due 10/19/23 | | 3,440 | | 3,406 |
Continental Airlines 2009-1
Class A Pass Through Trust
9.000% due 07/08/16 | | 490 | | 539 |
Countrywide Financial Corp.
Series MTn
5.800% due 06/07/12 | | 450 | | 479 |
Credit Suisse USA, Inc. (Ñ)
5.500% due 08/15/13 | | 115 | | 126 |
4.875% due 01/15/15 | | 110 | | 118 |
CRH America, Inc.
6.950% due 03/15/12 | | 765 | | 831 |
CVS Caremark Corp.
6.600% due 03/15/19 | | 930 | | 1,061 |
6.250% due 06/01/27 | | 815 | | 873 |
CVS Pass-Through Trust
5.789% due 01/10/26 (Þ) | | 248 | | 250 |
5.880% due 2028 | | 12 | | 11 |
6.036% due 2028 | | 1,026 | | 1,031 |
7.507% due 01/10/32 (Þ) | | 379 | | 429 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Dell, Inc.(Ñ)
5.650% due 04/15/18 | | 475 | | 517 |
Delta Air Lines, Inc.
Series 00A2 (Ñ)
7.570% due 05/18/12 | | 1,240 | | 1,269 |
Series 071A
6.821% due 02/10/24 | | 1,816 | | 1,857 |
Series A
7.750% due 12/17/19 | | 1,100 | | 1,202 |
Delta Air Lines, Inc.
Series 01A2
7.111% due 03/18/13 | | 500 | | 522 |
Devon Energy Corp.
7.950% due 04/15/32 | | 520 | | 669 |
Dominion Resources, Inc.
5.700% due 09/17/12 | | 455 | | 495 |
8.875% due 01/15/19 | | 390 | | 501 |
Dow Chemical Co. (The)
8.550% due 05/15/19 | | 3,250 | | 3,971 |
DPL, Inc.
6.875% due 09/01/11 | | 495 | | 528 |
Dr Pepper Snapple Group, Inc.
6.820% due 05/01/18 | | 780 | | 907 |
DTE Energy Co.
7.050% due 06/01/11 | | 450 | | 475 |
Duke Energy Carolinas LLC
5.625% due 11/30/12 | | 265 | | 292 |
6.000% due 01/15/38 | | 325 | | 351 |
Duke Energy Corp.
6.300% due 02/01/14 | | 225 | | 253 |
3.950% due 09/15/14 | | 410 | | 426 |
Duke University (Ñ)
4.200% due 04/01/14 | | 1,300 | | 1,384 |
5.150% due 04/01/19 | | 1,000 | | 1,073 |
Eastman Kodak Co.
7.250% due 11/15/13 | | 70 | | 70 |
El Paso Pipeline Partners Operating Co. LLC
6.500% due 04/01/20 | | 1,700 | | 1,755 |
Energy Future Holdings Corp.
Series P
5.550% due 11/15/14 | | 150 | | 113 |
Series Q
6.500% due 11/15/24 | | 90 | | 47 |
Series R
6.550% due 11/15/34 | | 635 | | 324 |
Energy Transfer Partners, LP
9.000% due 04/15/19 | | 630 | | 787 |
Enterprise Products Operating LLC
Series L
6.300% due 09/15/17 | | 640 | | 718 |
Series O
9.750% due 01/31/14 | | 830 | | 1,017 |
ERAC USA Finance LLC (Þ)
7.000% due 10/15/37 | | 1,425 | | 1,520 |
Exelon Corp.
4.900% due 06/15/15 | | 865 | | 913 |
5.625% due 06/15/35 | | 330 | | 318 |
| | |
| 166 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Express Scripts, Inc.(Ñ)
5.250% due 06/15/12 | | 375 | | 402 |
Farmers Exchange Capital (Þ)
7.050% due 07/15/28 | | 735 | | 693 |
7.200% due 07/15/48 | | 700 | | 624 |
Farmers Insurance Exchange (Þ)
8.625% due 05/01/24 | | 610 | | 659 |
FirstEnergy Corp.
Series B
6.450% due 11/15/11 | | 67 | | 71 |
Series C
7.375% due 11/15/31 | | 1,215 | | 1,296 |
Fortune Brands, Inc. (Ñ)
3.000% due 06/01/12 | | 1,250 | | 1,262 |
Freeport-McMoRan Copper & Gold,
Inc. (Ñ)
8.375% due 04/01/17 | | 1,090 | | 1,222 |
General Electric Capital Corp.
3.000% due 12/09/11 | | 1,200 | | 1,240 |
2.125% due 12/21/12 | | 1,370 | | 1,394 |
2.800% due 01/08/13 (Ñ) | | 1,545 | | 1,571 |
5.900% due 05/13/14 (Ñ) | | 1,040 | | 1,151 |
5.625% due 05/01/18 | | 580 | | 615 |
5.875% due 01/14/38 | | 3,995 | | 3,949 |
6.875% due 01/10/39 | | 1,500 | | 1,667 |
6.375% due 11/15/67 | | 770 | | 737 |
Series EMTN (Ê)
0.381% due 03/20/14 | | 800 | | 756 |
Series GMTN
2.000% due 09/28/12 | | 600 | | 610 |
2.625% due 12/28/12 | | 2,900 | | 2,987 |
6.000% due 08/07/19 | | 400 | | 432 |
Series MTNA (Ê)
0.517% due 09/15/14 | | 830 | | 802 |
General Electric Co.
5.250% due 12/06/17 | | 505 | | 537 |
Gerdau Holdings, Inc.
Series REGS
7.000% due 01/20/20 | | 1,200 | | 1,255 |
GlaxoSmithKline Capital, Inc.
5.650% due 05/15/18 | | 1,220 | | 1,352 |
GMAC, Inc.(Å)
8.000% due 12/31/18 | | 159 | | 158 |
Goldman Sachs Capital II (ƒ)
5.793% due 12/29/49 | | 960 | | 760 |
Goldman Sachs Group, Inc. (The)
1.080% due 12/05/11 (Ê) | | 850 | | 861 |
6.600% due 01/15/12 (Ñ) | | 60 | | 64 |
5.300% due 02/14/12 | | 2,435 | | 2,553 |
3.625% due 08/01/12 | | 100 | | 102 |
5.450% due 11/01/12 | | 220 | | 233 |
4.750% due 07/15/13 | | 350 | | 362 |
5.250% due 10/15/13 | | 150 | | 157 |
5.125% due 01/15/15 | | 1,000 | | 1,033 |
6.150% due 04/01/18 | | 360 | | 373 |
7.500% due 02/15/19 | | 1,034 | | 1,148 |
5.375% due 03/15/20 | | 320 | | 311 |
5.950% due 01/15/27 | | 250 | | 229 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
6.450% due 05/01/36 | | 125 | | 118 |
6.750% due 10/01/37 | | 2,850 | | 2,763 |
Hartford Financial Services Group, Inc.
5.250% due 10/15/11 | | 375 | | 389 |
5.375% due 03/15/17 | | 460 | | 467 |
5.500% due 03/30/20 | | 810 | | 805 |
HCP, Inc.
5.950% due 09/15/11 | | 985 | | 1,033 |
6.300% due 09/15/16 | | 500 | | 524 |
6.700% due 01/30/18 | | 1,025 | | 1,071 |
Health Care REIT, Inc.
6.125% due 04/15/20 | | 1,700 | | 1,754 |
Hess Corp.
8.125% due 02/15/19 | | 570 | | 709 |
7.875% due 10/01/29 (Ñ) | | 110 | | 134 |
7.300% due 08/15/31 | | 435 | | 507 |
Historic TW, Inc.
8.050% due 01/15/16 | | 565 | | 671 |
Humana, Inc.
7.200% due 06/15/18 | | 270 | | 298 |
ILFC E-Capital Trust II (Þ)
6.250% due 12/21/65 | | 290 | | 219 |
International Business Machines Corp.
5.700% due 09/14/17 | | 700 | | 788 |
International Lease Finance Corp.
5.350% due 03/01/12 (Ñ) | | 200 | | 197 |
5.300% due 05/01/12 (Ñ) | | 200 | | 195 |
5.625% due 09/20/13 | | 400 | | 371 |
Jersey Central Power & Light Co.
5.625% due 05/01/16 | | 260 | | 282 |
JPMorgan Chase & Co.
5.375% due 10/01/12 | | 1,220 | | 1,327 |
5.375% due 01/15/14 (Ñ) | | 475 | | 516 |
5.125% due 09/15/14 | | 1,085 | | 1,160 |
3.700% due 01/20/15 (Ñ) | | 1,340 | | 1,367 |
5.150% due 10/01/15 (Ñ) | | 520 | | 556 |
6.000% due 01/15/18 | | 425 | | 458 |
6.400% due 05/15/38 | | 442 | | 491 |
JPMorgan Chase Bank NA
Series AI (Þ)
5.875% due 06/13/16 | | 85 | | 92 |
Series BKNT
6.000% due 10/01/17 | | 1,000 | | 1,073 |
JPMorgan Chase Capital XIII (Ê)
Series M
1.239% due 09/30/34 | | 625 | | 489 |
JPMorgan Chase Capital XV
5.875% due 03/15/35 | | 550 | | 498 |
JPMorgan Chase Capital XX
Series T
6.550% due 09/29/36 | | 200 | | 191 |
JPMorgan Chase Capital XXIII (Ê)(Ñ)
1.436% due 05/15/77 | | 3,495 | | 2,714 |
JPMorgan Chase Capital XXVII
Series AA
7.000% due 11/01/39 | | 930 | | 956 |
KCP&L Greater Missouri Operations Co.
11.875% due 07/01/12 | | 1,085 | | 1,274 |
| | |
| Russell Investment Grade Bond Fund | | 167 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Kellogg Co.
5.125% due 12/03/12 | | 810 | | 885 |
Kerr-McGee Corp.
6.950% due 07/01/24 | | 290 | | 328 |
Kinder Morgan Energy Partners, LP
7.125% due 03/15/12 | | 185 | | 202 |
5.000% due 12/15/13 | | 115 | | 124 |
6.000% due 02/01/17 | | 60 | | 66 |
6.950% due 01/15/38 (Ñ) | | 1,155 | | 1,289 |
Kraft Foods, Inc.
6.125% due 02/01/18 | | 900 | | 994 |
5.375% due 02/10/20 | | 1,660 | | 1,722 |
6.500% due 02/09/40 | | 2,630 | | 2,830 |
Lehman Brothers Holdings Capital Trust VII (ƒ)(Ø)
5.857% due 11/29/49 | | 1,450 | | — |
Lehman Brothers Holdings, Inc. (Ø)
5.250% due 02/06/12 | | 140 | | 31 |
6.200% due 09/26/14 | | 150 | | 33 |
6.500% due 07/19/17 | | 390 | | — |
6.750% due 12/28/17 | | 990 | | 1 |
6.875% due 05/02/18 | | 200 | | 44 |
Lincoln National Corp. (Ñ)
6.250% due 02/15/20 | | 830 | | 887 |
Lorillard Tobacco Co. (Ñ)
8.125% due 06/23/19 | | 1,245 | | 1,405 |
Manufacturers & Traders Trust Co.
5.585% due 12/28/20 | | 180 | | 168 |
MBNA Capital B (Ê)
Series B
1.144% due 02/01/27 | | 680 | | 494 |
MBNA Corp.
6.125% due 03/01/13 | | 445 | | 480 |
Mead Johnson Nutrition Co. (Þ)
4.900% due 11/01/19 | | 50 | | 50 |
Medtronic, Inc.
4.450% due 03/15/20 | | 420 | | 427 |
Merrill Lynch & Co., Inc.
0.516% due 07/25/11 (Ê) | | 700 | | 696 |
6.050% due 08/15/12 | | 200 | | 215 |
5.450% due 02/05/13 | | 3,505 | | 3,728 |
6.400% due 08/28/17 | | 690 | | 724 |
6.220% due 09/15/26 | | 815 | | 786 |
6.110% due 01/29/37 | | 1,095 | | 1,013 |
MetLife, Inc.
6.125% due 12/01/11 | | 180 | | 192 |
6.750% due 06/01/16 | | 650 | | 739 |
6.400% due 12/15/36 | | 1,010 | | 954 |
Series A
6.817% due 08/15/18 | | 675 | | 760 |
Metropolitan Life Global
Funding I (Þ)
5.125% due 06/10/14 | | 300 | | 325 |
MidAmerican Energy Co.
5.800% due 10/15/36 | | 300 | | 309 |
Morgan Stanley
3.250% due 12/01/11 | | 520 | | 539 |
5.625% due 01/09/12 (Ñ) | | 510 | | 538 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
4.750% due 04/01/14 | | 250 | | 255 |
6.000% due 05/13/14 | | 680 | | 731 |
0.754% due 10/18/16 (Ê) | | 1,235 | | 1,138 |
5.450% due 01/09/17 | | 600 | | 609 |
6.250% due 08/28/17 | | 300 | | 311 |
6.625% due 04/01/18 | | 2,825 | | 2,995 |
5.625% due 09/23/19 | | 2,575 | | 2,540 |
Series GMTN (Ê)
0.595% due 01/09/14 | | 1,100 | | 1,055 |
National City Bank (Ê)
Series BKNT
0.622% due 06/07/17 | | 1,400 | | 1,249 |
National Semiconductor Corp. (Ñ)
6.600% due 06/15/17 | | 40 | | 44 |
Nationsbank Capital Trust III (Ê)
0.853% due 01/15/27 | | 500 | | 364 |
NBC Universal, Inc. (Å)
3.650% due 04/30/15 | | 1,830 | | 1,847 |
New Cingular Wireless Services, Inc.
8.750% due 03/01/31 | | 500 | | 659 |
News America Holdings, Inc.
7.900% due 12/01/95 | | 295 | | 344 |
8.250% due 10/17/96 | | 65 | | 73 |
News America, Inc.
6.200% due 12/15/34 | | 35 | | 36 |
6.150% due 03/01/37 | | 590 | | 604 |
6.650% due 11/15/37 | | 20 | | 22 |
NGPL PipeCo LLC (Þ)
6.514% due 12/15/12 | | 2,010 | | 2,209 |
Nisource Finance Corp.
6.400% due 03/15/18 | | 250 | | 273 |
Northern States Power Co. (Ñ)
Series B
8.000% due 08/28/12 | | 400 | | 458 |
Occidental Petroleum Corp.
7.000% due 11/01/13 | | 800 | | 932 |
Ohio National Financial Services,
Inc. (Å)
6.375% due 04/30/20 | | 5,000 | | 5,132 |
Ohio Power Co.
Series F
5.500% due 02/15/13 | | 45 | | 49 |
Oncor Electric Delivery Co. LLC
5.950% due 09/01/13 | | 1,080 | | 1,186 |
6.800% due 09/01/18 (Ñ) | | 1,350 | | 1,552 |
Oracle Corp.
5.750% due 04/15/18 | | 1,250 | | 1,397 |
Pacific Gas & Electric Co.
8.250% due 10/15/18 | | 170 | | 211 |
6.050% due 03/01/34 | | 270 | | 287 |
5.800% due 03/01/37 | | 110 | | 113 |
6.350% due 02/15/38 | | 90 | | 100 |
Panhandle Eastern Pipeline Co., LP
8.125% due 06/01/19 | | 1,000 | | 1,185 |
Pemex Project Funding Master Trust
Series WI
6.625% due 06/15/35 | | 430 | | 426 |
PepsiCo, Inc. (Ñ)
7.900% due 11/01/18 | | 470 | | 593 |
| | |
| 168 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Pfizer, Inc.
6.200% due 03/15/19 | | 710 | | 810 |
Philip Morris International, Inc.
5.650% due 05/16/18 | | 300 | | 328 |
Principal Life Income Funding Trusts
5.300% due 04/24/13 | | 300 | | 322 |
Progress Energy, Inc.
7.750% due 03/01/31 | | 130 | | 159 |
6.000% due 12/01/39 | | 970 | | 996 |
Prudential Financial, Inc.
3.875% due 01/14/15 | | 535 | | 543 |
Prudential Holdings LLC (Þ)
8.695% due 12/18/23 | | 1,175 | | 1,378 |
Public Service Co. of New Mexico
7.950% due 05/15/18 | | 675 | | 720 |
Public Service Electric & Gas Co. (Ñ)
5.300% due 05/01/18 | | 800 | | 853 |
Qwest Corp.
7.875% due 09/01/11 | | 840 | | 891 |
Reed Elsevier Capital, Inc.
8.625% due 01/15/19 | | 450 | | 571 |
Republic Services, Inc. (Þ)
6.200% due 03/01/40 | | 340 | | 348 |
Reynolds American, Inc.
7.625% due 06/01/16 (Ñ) | | 220 | | 247 |
Series *
7.250% due 06/01/12 | | 40 | | 44 |
Roche Holdings, Inc. (Þ)
6.000% due 03/01/19 | | 280 | | 314 |
Rockies Express Pipeline LLC (Þ)
5.625% due 04/15/20 | | 865 | | 865 |
Simon Property Group, LP
5.300% due 05/30/13 | | 1,075 | | 1,153 |
4.200% due 02/01/15 (Ñ) | | 165 | | 168 |
6.100% due 05/01/16 | | 295 | | 318 |
5.250% due 12/01/16 | | 330 | | 342 |
SLM Corp.
8.450% due 06/15/18 | | 1,000 | | 999 |
Series MTNA
5.375% due 05/15/14 | | 1,590 | | 1,523 |
Southern Copper Corp.
5.375% due 04/16/20 | | 375 | | 381 |
Southern Natural Gas Co. (Þ)
5.900% due 04/01/17 | | 30 | | 32 |
Southwest Airlines Co. 2007-1 Pass Through Trust
Series 07-1
6.150% due 08/01/22 | | 154 | | 157 |
Southwestern Electric Power Co. (Ñ)
6.450% due 01/15/19 | | 770 | | 857 |
State Street Capital Trust IV (Ê)
1.257% due 06/01/67 | | 100 | | 77 |
SunTrust Capital VIII
6.100% due 12/01/66 | | 630 | | 530 |
SunTrust Preferred Capital I (ƒ)
5.853% due 12/31/49 | | 156 | | 122 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Teachers Insurance & Annuity
Association of America (Þ)
6.850% due 12/16/39 | | 310 | | 350 |
Tennessee Gas Pipeline Co.
8.000% due 02/01/16 | | 505 | | 578 |
Texas-New Mexico Power Co. (Þ)
9.500% due 04/01/19 | | 800 | | 990 |
Time Warner Cable, Inc.
6.750% due 07/01/18 | | 2,125 | | 2,409 |
8.750% due 02/14/19 | | 740 | | 927 |
8.250% due 04/01/19 | | 400 | | 489 |
6.750% due 06/15/39 (Ñ) | | 190 | | 205 |
Series WI
5.850% due 05/01/17 | | 1,225 | | 1,328 |
Time Warner Entertainment Co., LP (Ñ)
Series *
8.375% due 07/15/33 | | 105 | | 130 |
Time Warner, Inc.
6.875% due 05/01/12 | | 345 | | 380 |
4.875% due 03/15/20 | | 1,050 | | 1,041 |
Travelers Cos., Inc. (The)
6.250% due 03/15/37 | | 620 | | 610 |
6.250% due 06/15/37 | | 500 | | 543 |
Union Electric Co.
6.400% due 06/15/17 | | 545 | | 605 |
United Parcel Service, Inc.
4.500% due 01/15/13 | | 600 | | 643 |
United Technologies Corp.
4.500% due 04/15/20 | | 530 | | 544 |
5.400% due 05/01/35 (Ñ) | | 70 | | 70 |
UnitedHealth Group, Inc.
6.000% due 06/15/17 | | 4 | | 4 |
6.000% due 02/15/18 | | 550 | | 596 |
Series WI
6.500% due 06/15/37 | | 120 | | 127 |
USB Capital IX (ƒ)
6.189% due 10/29/49 | | 200 | | 174 |
Valero Energy Corp.
9.375% due 03/15/19 (Ñ) | | 925 | | 1,135 |
6.625% due 06/15/37 | | 1,225 | | 1,232 |
Verizon Communications, Inc.
5.500% due 02/15/18 | | 430 | | 461 |
6.100% due 04/15/18 | | 680 | | 752 |
6.350% due 04/01/19 (Ñ) | | 895 | | 1,005 |
6.400% due 02/15/38 | | 810 | | 867 |
8.950% due 03/01/39 (Ñ) | | 280 | | 386 |
Verizon Global Funding Corp.
7.375% due 09/01/12 | | 275 | | 311 |
Verizon New Jersey, Inc.
Series A
5.875% due 01/17/12 | | 1,315 | | 1,401 |
Wachovia Capital Trust III (ƒ)
5.800% due 03/29/49 | | 290 | | 251 |
Wachovia Corp.
5.500% due 05/01/13 | | 750 | | 816 |
5.700% due 08/01/13 | | 725 | | 793 |
5.250% due 08/01/14 | | 460 | | 488 |
| | |
| Russell Investment Grade Bond Fund | | 169 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
5.625% due 10/15/16 | | 400 | | 427 |
Wal-Mart Stores, Inc.
5.800% due 02/15/18 | | 410 | | 467 |
6.200% due 04/15/38 | | 90 | | 99 |
Washington Mutual, Inc. (Ø)(Ñ)
5.000% due 03/22/12 | | 425 | | 438 |
Waste Management, Inc.
6.375% due 11/15/12 | | 555 | | 615 |
WEA Finance LLC (Þ)
7.125% due 04/15/18 | | 2,400 | | 2,712 |
WEA Finance LLC / WT Finance Aust Pty, Ltd. (Þ) 7.500% due 06/02/14 | | 1,070 | | 1,219 |
6.750% due 09/02/19 | | 120 | | 134 |
WellPoint, Inc.
5.875% due 06/15/17 | | 30 | | 33 |
7.000% due 02/15/19 | | 440 | | 507 |
Wells Fargo & Co.
3.625% due 04/15/15 | | 1,490 | | 1,513 |
Series K (ƒ)
7.980% due 03/29/49 | | 900 | | 949 |
Wells Fargo Capital X
5.950% due 12/15/36 | | 200 | | 184 |
Wells Fargo Capital XV (ƒ)
9.750% due 12/31/49 | | 960 | | 1,075 |
Williams Cos., Inc. (The)
7.875% due 09/01/21 | | 241 | | 288 |
7.750% due 06/15/31 | | 1,150 | | 1,324 |
Series A
7.500% due 01/15/31 | | 315 | | 355 |
Williams Partners, LP (þ)
5.250% due 03/15/20 | | 760 | | 782 |
Wyeth
5.950% due 04/01/37 | | 350 | | 377 |
Xerox Corp.
5.500% due 05/15/12 (Ñ) | | 870 | | 928 |
6.750% due 12/15/39 | | 1,010 | | 1,094 |
XTO Energy, Inc.
7.500% due 04/15/12 | | 130 | | 145 |
5.500% due 06/15/18 (Ñ) | | 750 | | 824 |
6.500% due 12/15/18 (Ñ) | | 590 | | 693 |
ZFS Finance USA Trust II (Þ)
6.450% due 12/15/65 | | 2,375 | | 2,292 |
| | | | |
| | | | 298,635 |
| | | | |
| | |
International Debt - 4.1% | | | | |
America Movil SAB de CV
5.625% due 11/15/17 | | 180 | | 192 |
5.000% due 10/16/19 (Þ) | | 430 | | 433 |
5.000% due 03/30/20 (Þ) | | 610 | | 613 |
Anadarko Finance Co.
Series B
7.500% due 05/01/31 | | 475 | | 547 |
ANZ National International, Ltd. (Þ)
6.200% due 07/19/13 | | 1,600 | | 1,764 |
ArcelorMittal
5.375% due 06/01/13 | | 1,375 | | 1,473 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
AstraZeneca PLC
5.900% due 09/15/17 | | 300 | | 340 |
Banco Santander Chile (Ê)(Å)
1.557% due 04/20/12 | | 900 | | 899 |
Bank of China Hong Kong, Ltd. (Þ)
5.500% due 02/11/20 | | 100 | | 100 |
Bank of Scotland PLC (Þ)
5.250% due 02/21/17 | | 230 | | 236 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. (Þ)
3.850% due 01/22/15 | | 300 | | 311 |
Banque Centrale de Tunisie SA
8.250% due 09/19/27 | | 550 | | 674 |
Barclays Bank PLC
5.200% due 07/10/14 | | 280 | | 300 |
6.050% due 12/04/17 (Þ) | | 140 | | 146 |
6.750% due 05/22/19 | | 880 | | 988 |
5.125% due 01/08/20 | | 230 | | 230 |
Barrick Gold Corp.
6.950% due 04/01/19 | | 510 | | 597 |
BHP Billiton Finance USA, Ltd.
6.500% due 04/01/19 | | 890 | | 1,031 |
BNP Paribas (ƒ)(Þ)
5.186% due 06/29/49 | | 1,900 | | 1,748 |
BP Capital Markets PLC
5.250% due 11/07/13 | | 650 | | 718 |
3.875% due 03/10/15 | | 650 | | 681 |
Commonwealth Bank of Australia (Þ)
3.750% due 10/15/14 | | 250 | | 255 |
5.000% due 10/15/19 (Ñ) | | 110 | | 112 |
Corp. Nacional del Cobre de Chile (Þ)
7.500% due 01/15/19 | | 400 | | 479 |
6.150% due 10/24/36 | | 100 | | 105 |
Credit Agricole SA (ƒ)(Þ)
8.375% due 10/29/49 | | 560 | | 585 |
Credit Suisse AG
5.400% due 01/14/20 | | 820 | | 835 |
Credit Suisse Guernsey, Ltd. (ƒ)
5.860% due 05/29/49 (Ñ) | | 520 | | 491 |
Series 1 (Ê)
1.126% due 05/29/49 | | 725 | | 569 |
Credit Suisse NY
5.000% due 05/15/13 | | 1,000 | | 1,076 |
5.500% due 05/01/14 | | 500 | | 548 |
6.000% due 02/15/18 | | 500 | | 534 |
5.300% due 08/13/19 | | 60 | | 63 |
Danske Bank A/S (Þ)
2.500% due 05/10/12 | | 300 | | 306 |
Depfa ACS Bank (Å)
5.125% due 03/16/37 | | 400 | | 303 |
Deutsche Bank AG
5.375% due 10/12/12 | | 350 | | 378 |
6.000% due 09/01/17 (Ñ) | | 1,000 | | 1,106 |
Deutsche Telekom International Finance BV
5.750% due 03/23/16 | | 540 | | 589 |
Dexia Credit Local (Ê)
0.928% due 09/23/11 (Þ) | | 500 | | 503 |
0.808% due 04/29/14 (Å) | | 1,700 | | 1,698 |
| | |
| 170 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Diageo Capital PLC
7.375% due 01/15/14 | | 980 | | 1,144 |
Electricite De France (Þ)
5.500% due 01/26/14 (Ñ) | | 400 | | 443 |
6.500% due 01/26/19 | | 400 | | 454 |
6.950% due 01/26/39 | | 400 | | 472 |
European Investment Bank(Ñ)
2.375% due 03/14/14 | | 825 | | 830 |
Export-Import Bank of China (Þ)
4.875% due 07/21/15 | | 200 | | 214 |
Gaz Capital SA for Gazprom
7.343% due 04/11/13 (Þ) | | 100 | | 107 |
6.212% due 11/22/16 (Þ) | | 100 | | 101 |
8.146% due 04/11/18 (Þ) | | 500 | | 556 |
Series REGS
8.146% due 04/11/18 | | 1,600 | | 1,792 |
General Electric Capital Corp. (Þ)
5.500% due 09/15/67 | | 300 | | 357 |
General Motors Corp.
8.375% due 07/05/33 | | 160 | | 79 |
Gerdau Holdings, Inc. (Þ)
7.000% due 01/20/20 | | 600 | | 628 |
Glitnir Banki HF (Ø)(Å)
6.330% due 07/28/11 | | 270 | | 84 |
6.375% due 09/25/12 | | 390 | | 122 |
6.693% due 06/15/16 | | 700 | | 1 |
HBOS Capital Funding, LP (ƒ)(Þ)
6.071% due 06/29/49 | | 110 | | 89 |
HBOS PLC (Þ)
6.750% due 05/21/18 | | 2,425 | | 2,322 |
HSBC Holdings PLC
6.500% due 05/02/36 (Ñ) | | 500 | | 531 |
6.500% due 09/15/37 | | 500 | | 530 |
Ingersoll-Rand Global Holding Co.,
Ltd. (Ñ)
9.500% due 04/15/14 | | 565 | | 693 |
Itau Unibanco Holding SA (Å)
6.200% due 04/15/20 | | 1,800 | | 1,811 |
Kaupthing Bank Hf (Ø)(Å)
5.750% due 10/04/11 | | 100 | | 28 |
7.625% due 02/28/15 | | 1,210 | | 339 |
7.125% due 05/19/16 | | 1,480 | | — |
Korea Electric Power Corp. (Þ)
5.125% due 04/23/34 | | 155 | | 165 |
LBG Capital No. 1 PLC (Å)
8.500% due 12/29/49 | | 200 | | 172 |
Lloyds TSB Bank PLC (Þ)
4.375% due 01/12/15 | | 400 | | 397 |
5.800% due 01/13/20 | | 860 | | 852 |
Mexico Government International Bond
Series MTNA
6.750% due 09/27/34 | | 333 | | 361 |
MUFG Capital Finance 1, Ltd. (ƒ)
6.346% due 07/29/49 | | 200 | | 199 |
MUFG Capital Finance 5 . (ƒ)
6.299% due 12/31/49 | | 1,000 | | 1,385 |
National Australia Bank, Ltd. (Ñ)(Þ)
5.350% due 06/12/13 | | 600 | | 653 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Nomura Holdings, Inc.
6.700% due 03/04/20 | | 675 | | 723 |
Nordea Bank AB (Þ)
3.700% due 11/13/14 | | 360 | | 368 |
4.875% due 01/27/20 | | 240 | | 239 |
Petrobras International Finance Co.
6.125% due 10/06/16 (Ñ) | | 150 | | 162 |
5.750% due 01/20/20 | | 142 | | 144 |
Petroleos Mexicanos (Þ)
6.000% due 03/05/20 | | 400 | | 411 |
Petroleum Export, Ltd. (Þ)
5.265% due 06/15/11 | | 79 | | 78 |
Rabobank Nederland NV (ƒ)(Þ)
11.000% due 06/29/49 | | 305 | | 392 |
Ras Laffan Liquefied Natural Gas Co., Ltd. II
Series REGS
5.298% due 09/30/20 | | 300 | | 310 |
Ras Laffan Liquefied Natural Gas Co., Ltd. III
5.838% due 09/30/27 (Þ) | | 250 | | 255 |
Series REGS
5.832% due 09/30/16 | | 1,300 | | 1,393 |
Resona Bank, Ltd. (ƒ)(Þ)
5.850% due 09/29/49 | | 100 | | 99 |
Resona Preferred Global Securities Cayman, Ltd. (ƒ)(Þ)
7.191% due 12/29/49 | | 405 | | 401 |
Rio Tinto Finance USA, Ltd.
6.500% due 07/15/18 (Ñ) | | 630 | | 715 |
9.000% due 05/01/19 | | 730 | | 940 |
Royal Bank of Scotland Group PLC
6.400% due 10/21/19 | | 570 | | 585 |
Series 1 (ƒ)
9.118% due 03/31/49 | | 200 | | 181 |
Series U (ƒ)
7.640% due 03/29/49 | | 100 | | 65 |
Royal Bank of Scotland PLC (The)
4.875% due 03/16/15 | | 1,170 | | 1,200 |
RSHB Capital SA for OJSC Russian Agricultural Bank (Þ)
6.299% due 05/15/17 | | 110 | | 114 |
Russia Government International Bond
Series REGS
7.500% due 03/31/30 | | 44 | | 51 |
Santander Perpetual SA Unipersonal (Þ)
3.724% due 01/20/15 | | 400 | | 398 |
Shell International Finance BV
4.375% due 03/25/20 | | 730 | | 738 |
Shinsei Finance Cayman, Ltd. (ƒ)(Ñ)(Þ)
6.418% due 01/29/49 | | 630 | | 494 |
Siemens Financieringsmaatschappij
NV (Þ)
5.500% due 02/16/12 | | 1,400 | | 1,500 |
SLM Corp.
3.125% due 09/17/12 | | 400 | | 505 |
Societe Financement de l’Economie Francaise (Þ)
2.375% due 03/26/12 | | 300 | | 306 |
| | |
| Russell Investment Grade Bond Fund | | 171 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
0.504% due 07/16/12 (Ê) | | 1,000 | | 1,003 |
Systems 2001 AT LLC (Þ)
7.156% due 12/15/11 | | 134 | | 141 |
Telecom Italia Capital SA
6.200% due 07/18/11 | | 290 | | 304 |
5.250% due 10/01/15 | | 690 | | 711 |
6.999% due 06/04/18 | | 470 | | 509 |
Telefonica Emisiones SAU
2.582% due 04/26/13 | | 1,105 | | 1,108 |
5.134% due 04/27/20 | | 580 | | 581 |
Temasek Financial I, Ltd. (Þ)
4.300% due 10/25/19 | | 300 | | 301 |
TNK-BP Finance SA
Series 144a (Þ)
7.500% due 07/18/16 | | 340 | | 364 |
Series REGS
7.875% due 03/13/18 | | 1,600 | | 1,760 |
TransCapitalInvest, Ltd. for OJSC AK Transneft
8.700% due 08/07/18 (Þ) | | 200 | | 241 |
Series REGS
8.700% due 08/07/18 | | 200 | | 238 |
Transocean, Inc.
5.250% due 03/15/13 | | 280 | | 303 |
Tyco International Finance SA
6.375% due 10/15/11 | | 465 | | 498 |
6.000% due 11/15/13 | | 835 | | 932 |
UBS AG
1.352% due 02/23/12 (Ê) | | 500 | | 503 |
Series DPNT
3.875% due 01/15/15 | | 770 | | 777 |
Vale Overseas, Ltd.
6.250% due 01/23/17 | | 100 | | 110 |
6.875% due 11/21/36 | | 497 | | 522 |
Vodafone Group PLC
4.150% due 06/10/14 | | 295 | | 308 |
| | | | |
| | | | 66,448 |
| | | | |
| | |
| Mortgage-Backed Securities - 33.7% | | | | |
Adjustable Rate Mortgage Trust (Ê)
Series 2005-3 Class 8A2
0.503% due 07/25/35 | | 147 | | 129 |
American Home Mortgage Investment Trust (Ê)
Series 2004-4 Class 4A
2.387% due 02/25/45 | | 156 | | 142 |
Series 2005-4 Class 1A1
0.553% due 11/25/45 | | 629 | | 405 |
Banc of America Alternative Loan Trust
Series 2003-2 Class CB2 (Ê)
0.763% due 04/25/33 | | 83 | | 73 |
Series 2003-10 Class 2A2 (Ê)
0.713% due 12/25/33 | | 242 | | 216 |
Series 2006-5 Class CB17
6.000% due 06/25/46 | | 642 | | 463 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Banc of America Commercial Mortgage, Inc.
Series 2005-2 Class A4
4.783% due 07/10/43 | | 1,079 | | 1,126 |
Series 2005-3 Class A2
4.501% due 07/10/43 | | 349 | | 352 |
Series 2006-1 Class A4
5.372% due 09/10/45 | | 910 | | 935 |
Series 2006-3 Class A4
5.889% due 07/10/44 | | 1,330 | | 1,356 |
Series 2006-6 Class A4
5.356% due 10/10/45 | | 600 | | 598 |
Series 2007-2 Class AAB
5.639% due 04/10/49 | | 990 | | 1,009 |
Series 2007-3 Class A3
5.837% due 06/10/49 | | 200 | | 210 |
Series 2007-5 Class A3
5.620% due 02/10/51 | | 20 | | 21 |
Banc of America Funding Corp.
Series 2005-5 Class 1A11
5.500% due 09/25/35 | | 738 | | 666 |
Series 2005-D Class A1 (Ê)
2.990% due 05/25/35 | | 285 | | 280 |
Series 2006-A Class 3A2
5.749% due 02/20/36 | | 313 | | 201 |
Series 2007-E Class 4A1 (Ê)
5.710% due 07/20/47 | | 778 | | 545 |
Banc of America Mortgage Securities, Inc.
Series 2003-9 Class 1A12 (Ê)
0.713% due 12/25/33 | | 191 | | 186 |
Series 2004-1 Class 5A1
6.500% due 09/25/33 | | 29 | | 29 |
Series 2004-2 Class 5A1
6.500% due 10/25/31 | | 39 | | 38 |
Series 2004-11 Class 2A1
5.750% due 01/25/35 | | 540 | | 544 |
Series 2005-H Class 2A5 (Ê)
4.786% due 09/25/35 | | 575 | | 507 |
Series 2005-L Class 3A1 (Ê)
5.386% due 01/25/36 | | 376 | | 349 |
Series 2006-2 Class A15
6.000% due 07/25/46 | | 481 | | 440 |
Series 2006-B Class 1A1 (Ê)
4.262% due 10/20/46 | | 176 | | 129 |
Bear Stearns Adjustable Rate Mortgage Trust
Series 2002-11 Class 1A1
5.653% due 02/25/33 | | 14 | | 14 |
Series 2004-1 Class 23A1 (Ê)
5.456% due 04/25/34 | | 173 | | 164 |
Series 2004-8 Class 2A1
3.482% due 11/25/34 | | 503 | | 450 |
Series 2004-9 Class 22A1 (Ê)
4.136% due 11/25/34 | | 135 | | 128 |
Series 2004-10 Class 22A1
4.976% due 01/25/35 | | 161 | | 159 |
Series 2005-2 Class A1 (Ê)
2.760% due 03/25/35 | | 2,125 | | 1,988 |
| | |
| 172 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2005-12 Class 13A1
5.253% due 02/25/36 | | 125 | | 107 |
Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.952% due 05/25/35 | | 386 | | 290 |
Series 2005-7 Class 22A1
5.119% due 09/25/35 | | 256 | | 198 |
Bear Stearns Commercial
Mortgage Securities
Series 2007-PW1 Class A4
5.331% due 02/11/44 | | 1,250 | | 1,235 |
Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
5.578% due 01/26/36 | | 411 | | 265 |
Series 2007-R6 Class 2A1
5.621% due 12/26/46 | | 214 | | 141 |
Chase Mortgage Finance Corp.
Series 2003-S8 Class A1
4.500% due 09/25/18 | | 296 | | 297 |
Series 2005-A1 Class 2A2 (Ê)
5.233% due 12/25/35 | | 787 | | 741 |
Series 2006-A1 Class 1A1 (Ê)
6.011% due 09/25/36 | | 228 | | 221 |
Series 2006-S4 Class A3
6.000% due 12/25/36 | | 552 | | 541 |
Series 2006-S4 Class A4
6.000% due 12/25/36 | | 159 | | 152 |
Citigroup Mortgage Loan Trust, Inc.
Series 2004-HYB Class A2 (Ê)
3.339% due 02/25/34 | | 23 | | 22 |
Series 2005-3 Class 2A2B
4.477% due 08/25/35 | | 499 | | 199 |
Series 2005-11 Class A2A (Ê)
4.700% due 12/25/35 | | 274 | | 252 |
Series 2005-11 Class A3 (Ê)
4.900% due 12/25/35 | | 413 | | 353 |
Series 2007-AR8 Class 2A1A
5.853% due 07/25/37 | | 474 | | 374 |
Series 2010-3 Class 4A1 (Ê)(Å)
4.625% due 02/25/36 | | 864 | | 854 |
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2005-CD1 Class A4
5.223% due 07/15/44 | | 765 | | 799 |
Series 2006-CD3 Class A5
5.617% due 10/15/48 | | 685 | | 705 |
Citimortgage Alternative Loan
Trust
Series 2006-A3 Class 1A5
6.000% due 07/25/36 | | 346 | | 255 |
Commercial Mortgage Loan Trust
Series 2008-LS1 Class A4B
6.019% due 12/10/49 | | 3,610 | | 3,652 |
Series 2008-LS1 Class AJ
6.019% due 10/10/17 | | 275 | | 144 |
Countrywide Alternative Loan Trust
Series 2004-2CB Class 1A4 (Ê)
0.663% due 03/25/34 | | 245 | | 231 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2005-J8 Class 1A3
5.500% due 07/25/35 | | 623 | | 513 |
Series 2005-J12 Class 2A1 (Ê)
0.533% due 08/25/35 | | 412 | | 250 |
Series 2005-J13 Class 2A3
5.500% due 11/25/35 | | 239 | | 188 |
Series 2006-9T1 Class A7
6.000% due 05/25/36 | | 268 | | 181 |
Series 2006-J2 Class A3
6.000% due 04/25/36 | | 417 | | 325 |
Series 2007-J2 Class 2A1
6.000% due 07/25/37 | | 599 | | 460 |
Series 2007-OA6 Class A1B (Ê)
0.463% due 06/25/37 | | 585 | | 326 |
Series 2007-OA7 Class A1A (Ê)
0.443% due 05/25/47 | | 569 | | 321 |
Countrywide Home Loan Mortgage Pass Through Trust
Series 2004-16 Class 1A1 (Ê)
0.663% due 09/25/34 | | 218 | | 133 |
Series 2004-22 Class A3
3.511% due 11/25/34 | | 332 | | 301 |
Series 2004-HYB Class 1A1
3.379% due 02/20/35 | | 717 | | 653 |
Series 2004-R2 Class 1AF1 (Ê)(Þ)
0.683% due 11/25/34 | | 31 | | 25 |
Series 2005-3 Class 1A2 (Ê)
0.553% due 04/25/35 | | 124 | | 76 |
Series 2005-HYB Class 3A2A (Ê)
5.250% due 02/20/36 | | 108 | | 85 |
Series 2005-R1 Class 1AF1 (Ê)(Þ)
0.623% due 03/25/35 | | 37 | | 30 |
Series 2005-R3 Class AF (Ê)(Þ)
0.663% due 09/25/35 | | 683 | | 549 |
Series 2006-HYB Class 2A1A
5.618% due 05/20/36 | | 551 | | 410 |
Series 2006-OA4 Class A1 (Ê)
1.423% due 04/25/46 | | 334 | | 166 |
Series 2007-18 Class 2A1
6.500% due 11/25/37 | | 473 | | 412 |
Series 2007-HY1 Class 1A2
5.601% due 04/25/37 | | 260 | | 52 |
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C1 Class A3
4.321% due 01/15/37 | | 121 | | 124 |
Series 2005-9 Class 2A1
5.500% due 10/25/35 | | 976 | | 852 |
Series 2005-C4 Class A3
5.120% due 08/15/38 | | 5,050 | | 5,198 |
Credit Suisse Mortgage Capital Certificates
Series 2006-C2 Class A1
5.250% due 03/15/39 | | 479 | | 487 |
Series 2006-C4 Class A3
5.467% due 09/15/39 | | 1,350 | | 1,328 |
Series 2006-C5 Class A3
5.311% due 12/15/39 | | 750 | | 741 |
Series 2006-TFL Class A1 (Ê)(Þ)
0.374% due 04/15/21 | | 174 | | 165 |
| | |
| Russell Investment Grade Bond Fund | | 173 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2007-C1 Class A3
5.383% due 02/15/40 | | 2,500 | | 2,364 |
Series 2007-C3 Class A4
5.912% due 06/15/39 | | 2,400 | | 2,292 |
Series 2007-C5 Class A3
5.694% due 09/15/40 | | 545 | | 549 |
Series 2007-C5 Class A4
5.695% due 09/15/40 | | 1,200 | | 1,142 |
Series 2008-C1 Class A3
6.422% due 02/15/41 | | 1,570 | | 1,533 |
CW Capital Cobalt, Ltd.
Series 2007-C3 Class A4
6.015% due 05/15/46 | | 820 | | 799 |
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust
Series 2005-AR1 Class 2A3
4.865% due 08/25/35 | | 1,060 | | 571 |
Deutsche Mortgage Securities,
Inc. (Þ)
Series 2005-WF1 Class 1A3
5.175% due 06/26/35 | | 920 | | 781 |
Downey Savings & Loan Association Mortgage Loan Trust
Series 2004-AR3 Class 1A1B (Ê)
2.702% due 07/19/44 | | 114 | | 55 |
Series 2005-AR6 Class 2A1A (Ê)
0.546% due 10/19/45 | | 574 | | 350 |
Fannie Mae
5.190% due 2012 | | 715 | | 761 |
7.000% due 2012 | | 1 | | 2 |
5.500% due 2013 | | 22 | | 23 |
6.500% due 2013 | | 23 | | 24 |
6.500% due 2015 | | 9 | | 9 |
7.000% due 2015 | | 6 | | 7 |
6.000% due 2016 | | 73 | | 79 |
6.500% due 2016 | | 62 | | 67 |
9.000% due 2016 | | — | | — |
5.500% due 2017 | | 119 | | 129 |
6.000% due 2017 | | 790 | | 851 |
6.500% due 2017 | | 151 | | 163 |
7.500% due 2017 | | — | | 1 |
8.500% due 2017 | | 2 | | 2 |
4.500% due 2018 | | 921 | | 973 |
5.000% due 2018 | | 843 | | 900 |
5.500% due 2018 | | 897 | | 965 |
6.500% due 2018 | | 187 | | 204 |
5.000% due 2019 | | 1,237 | | 1,319 |
6.500% due 2019 | | 87 | | 96 |
4.000% due 2020 | | 580 | | 603 |
4.500% due 2020 | | 429 | | 453 |
5.000% due 2020 | | 579 | | 618 |
6.500% due 2020 | | 40 | | 44 |
4.000% due 2021 | | 267 | | 278 |
5.500% due 2021 | | 11 | | 12 |
6.000% due 2021 | | 144 | | 156 |
4.500% due 2022 | | 366 | | 382 |
5.000% due 2022 | | 588 | | 623 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
5.500% due 2022 | | 940 | | 1,006 |
5.000% due 2023 | | 337 | | 357 |
4.500% due 2024 | | 743 | | 773 |
5.000% due 2024 | | 265 | | 280 |
5.500% due 2024 | | 609 | | 652 |
8.000% due 2024 | | 71 | | 82 |
8.500% due 2024 | | 16 | | 18 |
9.000% due 2024 | | 3 | | 4 |
4.000% due 2025 | | 552 | | 562 |
4.500% due 2025 | | 6,194 | | 6,446 |
7.000% due 2025 | | 12 | | 13 |
8.000% due 2025 | | 1 | | 1 |
8.500% due 2025 | | 23 | | 26 |
6.000% due 2026 | | 232 | | 249 |
7.000% due 2026 | | 20 | | 23 |
9.000% due 2026 | | 4 | | 5 |
7.000% due 2027 | | 7 | | 8 |
9.000% due 2027 | | 1 | | 1 |
6.500% due 2028 | | 313 | | 343 |
6.500% due 2029 | | 900 | | 992 |
7.000% due 2029 | | 82 | | 91 |
6.500% due 2030 | | 5 | | 5 |
8.000% due 2030 | | 95 | | 109 |
6.500% due 2031 | | 99 | | 110 |
8.000% due 2031 | | 73 | | 85 |
5.500% due 2032 | | 39 | | 42 |
6.000% due 2032 | | 151 | | 164 |
6.500% due 2032 | | 1,134 | | 1,250 |
7.000% due 2032 | | 254 | | 281 |
8.000% due 2032 | | 3 | | 5 |
2.745% due 2033 (Ê) | | 126 | | 132 |
2.818% due 2033 (Ê) | | 280 | | 290 |
4.500% due 2033 | | 5,107 | | 5,226 |
5.000% due 2033 | | 3,008 | | 3,139 |
5.500% due 2033 | | 6,216 | | 6,597 |
6.000% due 2033 | | 187 | | 203 |
6.500% due 2033 | | 561 | | 617 |
4.500% due 2034 | | 91 | | 93 |
5.000% due 2034 | | 469 | | 489 |
5.500% due 2034 | | 5,717 | | 6,065 |
6.000% due 2034 | | 2,384 | | 2,577 |
6.500% due 2034 | | 613 | | 673 |
2.410% due 2035 (Ê) | | 498 | | 512 |
2.413% due 2035 (Ê) | | 228 | | 234 |
2.418% due 2035 (Ê) | | 229 | | 236 |
2.428% due 2035 (Ê) | | 341 | | 350 |
2.431% due 2035 (Ê) | | 185 | | 191 |
2.440% due 2035 (Ê) | | 216 | | 223 |
2.445% due 2035 (Ê) | | 189 | | 195 |
2.446% due 2035 (Ê) | | 1,400 | | 1,442 |
3.093% due 2035 (Ê) | | 227 | | 234 |
3.614% due 2035 (Ê) | | 367 | | 380 |
4.500% due 2035 | | 388 | | 395 |
5.000% due 2035 | | 5,168 | | 5,380 |
5.500% due 2035 | | 3,257 | | 3,454 |
6.000% due 2035 | | 3,992 | | 4,304 |
5.000% due 2036 | | 829 | | 864 |
| | |
| 174 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
5.500% due 2036 | | 8,306 | | 8,770 |
6.000% due 2036 | | 2,516 | | 2,680 |
6.500% due 2036 | | 1,998 | | 2,166 |
7.000% due 2036 | | 86 | | 95 |
5.500% due 2037 | | 1,835 | | 1,940 |
5.503% due 2037 (Ê) | | 533 | | 561 |
5.850% due 2037 (Ê) | | 90 | | 95 |
6.000% due 2037 | | 5,033 | | 5,361 |
6.500% due 2037 | | 3,796 | | 4,095 |
5.500% due 2038 | | 1,296 | | 1,370 |
6.000% due 2038 | | 5,979 | | 6,368 |
4.500% due 2039 | | 1,441 | | 1,454 |
4.500% due 2040 | | 2,142 | | 2,163 |
1.621% due 2044 (Ê) | | 118 | | 116 |
Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33 | | 657 | | 139 |
Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18 | | 1,505 | | 162 |
Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19 | | 1,665 | | 177 |
Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35 | | 1,930 | | 351 |
Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36 | | 471 | | 79 |
15 Year TBA (Ï)
4.000% | | 4,990 | | 5,075 |
4.500% | | 3,830 | | 3,980 |
5.500% | | 4,970 | | 5,311 |
30 Year TBA (Ï)
4.000% | | 1,400 | | 1,369 |
4.500% | | 27,320 | | 27,542 |
5.000% | | 2,035 | | 2,148 |
5.000% | | 18,570 | | 19,187 |
5.500% | | 36,125 | | 38,016 |
6.000% | | 4,610 | | 4,922 |
6.500% | | 6,205 | | 6,705 |
Fannie Mae Grantor Trust (Ê)
Series 2002-T5 Class A1
0.503% due 05/25/32 | | 460 | | 428 |
Fannie Mae REMICS
Series 1992-158 Class ZZ
7.750% due 08/25/22 | | 154 | | 170 |
Series 1999-56 Class Z
7.000% due 12/18/29 | | 263 | | 293 |
Series 2003-21 Class M
5.000% due 02/25/17 | | 10 | | 11 |
Series 2003-32 Class FH (Ê)
0.663% due 11/25/22 | | 127 | | 126 |
Series 2003-35 Class FY (Ê)
0.663% due 05/25/18 | | 713 | | 708 |
Series 2003-37 Class HY
5.000% due 12/25/16 | | 199 | | 204 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2003-78 Class FI (Ê)
0.663% due 01/25/33 | | 278 | | 278 |
Series 2004-21 Class FL (Ê)
0.613% due 11/25/32 | | 167 | | 167 |
Series 2005-65 Class FP (Ê)
0.513% due 08/25/35 | | 38 | | 38 |
Series 2006-48 Class LG
Principal Only STRIP
Zero coupon due 06/25/36 | | 123 | | 107 |
Series 2006-5 Class 3A2 (Ê)
2.891% due 05/25/35 | | 54 | | 55 |
Series 2007-30 Class AF (Ê)
0.573% due 04/25/37 | | 515 | | 510 |
Series 2007-73 Class A1 (Ê)
0.323% due 07/25/37 | | 590 | | 538 |
Series 2009-70 Class PS (Ê)
6.488% due 01/25/37 | | 10,480 | | 1,556 |
Fannie Mae Whole Loan
Series 2003-W1 Class 1A1
6.500% due 12/25/42 | | 46 | | 50 |
Series 2004-W2 Class 5AF (Ê)
0.613% due 03/25/44 | | 306 | | 289 |
FDIC Structured Sale Guaranteed
Notes (Ê)(Þ)
Series 2010-S1 Class 1A
0.823% due 02/25/48 | | 961 | | 964 |
Federal Home Loan Mortgage
Corp. Structured Pass
Through Securities (Ê)
Series 2005-63 Class 1A1
1.663% due 02/25/45 | | 49 | | 50 |
FHA Project Citi 68 NP
7.430% due 06/27/21 | | 66 | | 66 |
First Horizon Alternative Mortgage Securities
Series 2004-AA3 Class A1 (Ê)
2.334% due 09/25/34 | | 231 | | 204 |
Series 2006-AA7 Class A1 (Ê)
6.452% due 01/25/37 | | 1,891 | | 1,011 |
Series 2006-FA3 Class A6
6.000% due 07/25/36 | | 281 | | 231 |
First Horizon Asset Securities,
Inc. (Ê)
Series 2005-AR5 Class 3A1
5.558% due 10/25/35 | | 145 | | 135 |
Freddie Mac
8.000% due 2012 | | 1 | | 1 |
6.000% due 2013 | | 8 | | 8 |
7.000% due 2014 | | 7 | | 8 |
12.000% due 2014 | | 1 | | 1 |
6.000% due 2016 | | 170 | | 183 |
9.000% due 2016 | | 50 | | 56 |
6.000% due 2017 | | 267 | | 288 |
8.000% due 2017 | | 10 | | 11 |
4.500% due 2018 | | 911 | | 961 |
5.000% due 2018 | | 243 | | 259 |
4.500% due 2019 | | 265 | | 279 |
| | |
| Russell Investment Grade Bond Fund | | 175 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
5.000% due 2019 | | 425 | | 454 |
5.500% due 2019 | | 545 | | 588 |
5.500% due 2020 | | 1,393 | | 1,501 |
6.000% due 2022 | | 21 | | 23 |
9.000% due 2024 | | 5 | | 6 |
6.500% due 2025 | | 8 | | 9 |
8.000% due 2025 | | 9 | | 11 |
9.000% due 2025 | | 7 | | 8 |
9.000% due 2026 | | 1 | | 1 |
3.278% due 2027 (Ê) | | 17 | | 18 |
6.500% due 2027 | | — | | 1 |
8.500% due 2027 | | 40 | | 46 |
6.500% due 2028 | | 129 | | 142 |
6.500% due 2029 | | 188 | | 207 |
3.331% due 2030 (Ê) | | 7 | | 7 |
6.500% due 2031 | | 273 | | 300 |
5.500% due 2032 | | 1,776 | | 1,887 |
6.000% due 2032 | | 34 | | 37 |
6.500% due 2032 | | 375 | | 412 |
7.000% due 2032 | | 286 | | 321 |
7.500% due 2032 | | 34 | | 39 |
5.000% due 2033 | | 607 | | 634 |
5.500% due 2033 | | 1,972 | | 2,096 |
6.000% due 2033 | | 7 | | 8 |
6.500% due 2033 | | 127 | | 140 |
2.873% due 2034 (Ê) | | 116 | | 119 |
4.500% due 2034 | | 287 | | 292 |
5.000% due 2034 | | 2,608 | | 2,726 |
5.500% due 2034 | | 1,436 | | 1,524 |
6.000% due 2034 | | 148 | | 161 |
6.500% due 2034 | | 129 | | 142 |
5.000% due 2035 | | 1,423 | | 1,480 |
5.500% due 2035 | | 435 | | 461 |
6.000% due 2035 | | 356 | | 387 |
5.500% due 2036 | | 2,423 | | 2,565 |
5.810% due 2036 (Ê) | | 207 | | 219 |
5.892% due 2036 (Ê) | | 439 | | 462 |
5.970% due 2036 (Ê) | | 252 | | 268 |
6.000% due 2036 | | 556 | | 600 |
6.163% due 2036 (Ê) | | 339 | | 359 |
5.000% due 2037 | | 333 | | 345 |
5.337% due 2037 (Ê) | | 685 | | 724 |
5.452% due 2037 (Ê) | | 238 | | 252 |
5.609% due 2037 (Ê) | | 576 | | 610 |
5.636% due 2037 (Ê) | | 932 | | 986 |
5.687% due 2037 (Ê) | | 127 | | 135 |
5.722% due 2037 (Ê) | | 236 | | 250 |
5.724% due 2037 (Ê) | | 403 | | 426 |
5.740% due 2037 (Ê) | | 291 | | 308 |
5.820% due 2037 (Ê) | | 330 | | 351 |
5.859% due 2037 (Ê) | | 101 | | 107 |
5.900% due 2037 (Ê) | | 197 | | 210 |
5.931% due 2037 (Ê) | | 167 | | 178 |
6.000% due 2037 | | 250 | | 268 |
6.034% due 2037 (Ê) | | 964 | | 1,034 |
4.970% due 2038 (Ê) | | — | | — |
5.000% due 2038 | | 113 | | 117 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
5.500% due 2038 | | 3,858 | | 4,080 |
6.000% due 2038 | | 7,026 | | 7,528 |
4.500% due 2039 | | 1,175 | | 1,185 |
6.000% due 2039 | | 583 | | 624 |
4.500% due 2040 | | 1,359 | | 1,372 |
15 Year TBA (Ï)
5.000% | | 2,500 | | 2,643 |
30 Year TBA (Ï)
4.500% | | 6,990 | | 7,048 |
5.000% | | 4,805 | | 4,978 |
5.500% | | 13,360 | | 14,085 |
6.000% | | 7,500 | | 8,028 |
Freddie Mac REMICS
Series 1991-105 Class G
7.000% due 03/15/21 | | 25 | | 27 |
Series 1998-210 Class ZM
6.000% due 12/15/28 | | 378 | | 412 |
Series 2000-226 Class F (Ê)
0.704% due 11/15/30 | | 7 | | 7 |
Series 2001-229 Class KF (Ê)
0.513% due 07/25/22 | | 235 | | 235 |
Series 2004-277 Class UF (Ê)
0.637% due 06/15/33 | | 274 | | 273 |
Series 2004-281 Class DF (Ê)
0.787% due 06/15/23 | | 266 | | 266 |
Series 2005-294 Class FA (Ê)
0.507% due 03/15/20 | | 516 | | 510 |
Series 2005-299 Class KF (Ê)
0.737% due 06/15/35 | | 160 | | 159 |
Series 2005-301 Class IM
5.500% due 01/15/31 | | 253 | | 15 |
Series 2005-305 Class JF (Ê)
0.637% due 10/15/35 | | 138 | | 138 |
Series 2007-333 Class BF (Ê)
0.487% due 07/15/19 | | 702 | | 699 |
Series 2007-333 Class FT (Ê)
0.487% due 08/15/19 | | 859 | | 855 |
Ginnie Mae I
9.500% due 2016 | | 1 | | 1 |
8.000% due 2017 | | 4 | | 4 |
10.500% due 2020 | | 5 | | 6 |
8.000% due 2022 | | 12 | | 13 |
8.500% due 2022 | | 9 | | 11 |
8.500% due 2024 | | 7 | | 8 |
8.000% due 2025 | | 16 | | 17 |
9.000% due 2025 | | 9 | | 10 |
8.000% due 2026 | | 48 | | 55 |
7.000% due 2029 | | 2 | | 2 |
8.000% due 2029 | | 32 | | 37 |
8.500% due 2029 | | 20 | | 22 |
8.000% due 2030 | | 24 | | 29 |
8.500% due 2030 | | 15 | | 17 |
7.000% due 2031 | | 228 | | 255 |
7.000% due 2032 | | 64 | | 73 |
5.000% due 2033 | | 1,895 | | 1,994 |
7.000% due 2033 | | 14 | | 16 |
5.000% due 2035 | | 345 | | 361 |
| | |
| 176 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
6.000% due 2035 | | 2,271 | | 2,451 |
6.000% due 2036 | | 193 | | 208 |
6.500% due 2036 | | 874 | | 948 |
6.500% due 2037 | | 11,532 | | 12,499 |
6.000% due 2038 | | 1,518 | | 1,631 |
6.500% due 2038 | | 29,052 | | 31,484 |
5.500% due 2039 | | 279 | | 297 |
6.500% due 2039 | | 1,069 | | 1,159 |
30 Year TBA (Ï)
4.500% | | 35,320 | | 35,861 |
5.000% | | 10,482 | | 10,929 |
5.500% | | 1,330 | | 1,412 |
6.000% | | 1,000 | | 1,072 |
Ginnie Mae II
3.125% due 2027 (Ê) | | 27 | | 28 |
3.625% due 2030 (Ê) | | 75 | | 77 |
4.375% due 2030 (Ê) | | 11 | | 12 |
7.500% due 2032 | | 7 | | 7 |
15 Year TBA (Ï)
4.500% | | 700 | | 709 |
30 Year TBA (Ï)
5.000% | | 200 | | 208 |
Goldman Sachs Mortgage
Securities Corp. II
Series 2007-GG1 Class A4
5.999% due 08/10/45 | | 1,000 | | 979 |
Government National Mortgage Association
Series 1999-40 Class FE (Ê)
0.806% due 11/16/29 | | 493 | | 497 |
Series 2004-93 Class PC
5.000% due 04/16/34 | | 2,650 | | 2,798 |
Greenpoint Mortgage Pass-
Through Certificates (Ê)
Series 2003-1 Class A1
2.999% due 10/25/33 | | 214 | | 178 |
Greenwich Capital Commercial Funding Corp.
Series 2005-GG5 Class A41
5.243% due 04/10/37 | | 695 | | 718 |
Series 2006-GG7 Class A4
6.085% due 07/10/38 | | 3,350 | | 3,484 |
Series 2007-GG9 Class A4
5.444% due 03/10/39 | | 2,600 | | 2,609 |
GS Mortgage Securities Corp. II
Series 2005-GG4 Class AABA
4.680% due 07/10/39 | | 571 | | 595 |
Series 2006-GG6 Class A4
5.553% due 04/10/38 | | 1,150 | | 1,178 |
Series 2006-GG8 Class AAB
5.535% due 11/10/39 | | 575 | | 612 |
GSMPS Mortgage Loan Trust (Ê)(Þ)
Series 2004-4 Class 1AF
0.663% due 06/25/34 | | 709 | | 580 |
Series 2005-RP3 Class 1AF
0.613% due 09/25/35 | | 94 | | 74 |
GSR Mortgage Loan Trust
Series 2004-5 Class 1A3 (Ê)
2.170% due 05/25/34 | | 244 | | 215 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2004-7 Class 4A1
4.848% due 06/25/34 | | 44 | | 41 |
Series 2005-AR7 Class 6A1
5.208% due 11/25/35 | | 2,661 | | 2,584 |
Harborview Mortgage Loan Trust
Series 2004-4 Class 3A (Ê)
1.381% due 06/19/34 | | 114 | | 80 |
Series 2005-4 Class 3A1
4.626% due 07/19/35 | | 305 | | 238 |
Series 2005-14 Class 3A1A
5.316% due 12/19/35 | | 129 | | 102 |
Series 2006-3 Class 1A1A (Ê)
6.115% due 06/19/36 | | 4,324 | | 2,366 |
Impac CMB Trust (Ê)
Series 2004-5 Class 1A1
0.623% due 10/25/34 | | 187 | | 158 |
Indymac Index Mortgage Loan Trust
Series 2005-AR1 Class 1A1
3.470% due 03/25/35 | | 660 | | 471 |
Series 2005-AR1 Class A2
5.099% due 09/25/35 | | 237 | | 192 |
Series 2006-AR2 Class 1A1B (Ê)
0.473% due 04/25/46 | | 745 | | 409 |
Series 2006-AR2 Class A2 (Ê)
0.343% due 11/25/36 | | 48 | | 26 |
Series 2006-AR3 Class 2A1A
5.847% due 03/25/36 | | 5,743 | | 3,535 |
JPMorgan Alternative Loan Trust (Ê)
Series 2006-A4 Class A4
0.333% due 09/25/36 | | 83 | | 81 |
Series 2006-S4 Class A1B
0.343% due 12/25/36 | | 97 | | 96 |
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2004-LN2 Class A1
4.475% due 07/15/41 | | 480 | | 493 |
Series 2005-CB1 Class A4
5.457% due 01/12/43 | | 200 | | 204 |
Series 2005-LDP Class A3A1
4.871% due 10/15/42 | | 1,940 | | 1,973 |
Series 2005-LDP Class A4
4.918% due 10/15/42 | | 690 | | 711 |
Series 2006-CB1 Class A4
5.481% due 12/12/44 | | 1,090 | | 1,130 |
5.552% due 05/12/45 | | 785 | | 804 |
Series 2006-LDP Class A3B
5.447% due 05/15/45 | | 820 | | 842 |
Series 2006-LDP Class A4
6.064% due 04/15/45 | | 1,580 | | 1,656 |
5.399% due 05/15/45 | | 1,055 | | 1,079 |
Series 2007-CB2 Class ASB
5.688% due 02/12/51 | | 1,165 | | 1,214 |
Series 2007-LD1 Class A4
6.006% due 06/15/49 | | 3,970 | | 3,901 |
5.882% due 02/15/51 | | 1,960 | | 1,955 |
Series 2007-LDP Class A3
5.420% due 01/15/49 | | 3,890 | | 3,750 |
| | |
| Russell Investment Grade Bond Fund | | 177 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2008-C2 Class A1
5.017% due 02/12/51 | | 326 | | 336 |
Series 2008-C2 Class ASB
6.125% due 02/12/51 | | 1,055 | | 1,091 |
JPMorgan Mortgage Trust
Series 2004-A3 Class SF3
4.557% due 06/25/34 | | 492 | | 496 |
Series 2005-A1 Class 6T1 (Ê)
5.015% due 02/25/35 | | 272 | | 275 |
Series 2006-A2 Class 1A1
5.463% due 04/25/36 | | 810 | | 738 |
Series 2007-A1 Class 3A2 (Ê)
4.276% due 07/25/35 | | 1,331 | | 1,205 |
Series 2007-A4 Class 3A1
5.876% due 06/25/37 | | 1,322 | | 1,165 |
LB-UBS Commercial Mortgage Trust
Series 2001-C3 Class A1
6.058% due 06/15/20 | | 26 | | 27 |
Series 2005-C3 Class A5
4.739% due 07/15/30 | | 820 | | 845 |
Series 2005-C3 Class AAB
4.664% due 07/15/30 | | 1,000 | | 1,042 |
Series 2005-C5 Class A4
4.954% due 09/15/30 | | 400 | | 413 |
Series 2006-C4 Class A4
5.882% due 06/15/38 | | 400 | | 422 |
Series 2007-C6 Class A4
5.858% due 07/15/40 | | 1,865 | | 1,866 |
Mastr Adjustable Rate Mortgages Trust
Series 2004-13 Class 2A1 (Ê)
2.976% due 04/21/34 | | 1,354 | | 1,347 |
Series 2006-2 Class 3A1
4.800% due 01/25/36 | | 692 | | 625 |
Series 2006-OA2 Class 1A1 (Ê)
1.263% due 12/25/46 | | 428 | | 146 |
Mastr Alternative Loans Trust
Series 2003-4 Class B1
5.719% due 06/25/33 | | 344 | | 226 |
Series 2004-10 Class 5A6
5.750% due 09/25/34 | | 621 | | 607 |
Mastr Asset Securitization Trust (Ê)
Series 2003-7 Class 4A35
0.663% due 09/25/33 | | 203 | | 193 |
Series 2003-11 Class 6A8
0.763% due 12/25/33 | | 383 | | 356 |
Series 2004-4 Class 2A2
0.713% due 04/25/34 | | 234 | | 218 |
Mastr Reperforming Loan Trust (Þ)
Series 2005-1 Class 1A1
6.000% due 08/25/34 | | 421 | | 388 |
Merrill Lynch Mortgage Investors,
Inc. (Ê)
Series 2005-A10 Class A
0.473% due 02/25/36 | | 226 | | 178 |
Merrill Lynch Mortgage Trust
Series 2004-MKB Class A2
4.353% due 02/12/42 | | 199 | | 202 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2006-4 Class A3
5.172% due 12/12/49 | | 1,000 | | 988 |
Series 2007-5 Class A4
5.378% due 08/12/48 | | 1,495 | | 1,418 |
Series 2007-7 Class A4
5.747% due 06/12/50 | | 2,760 | | 2,683 |
Series 2007-8 Class A3
6.155% due 08/12/49 | | 1,400 | | 1,414 |
Series 2007-8 Class ASB
6.088% due 08/12/49 | | 810 | | 856 |
MLCC Mortgage Investors, Inc. (Ê)
Series 2004-HB1 Class A2
0.770% due 04/25/29 | | 117 | | 100 |
Series 2005-2 Class 3A
1.249% due 10/25/35 | | 121 | | 103 |
Series 2005-3 Class 4A
0.513% due 11/25/35 | | 66 | | 55 |
Morgan Stanley Capital I
Series 2005-HQ5 Class A4
5.168% due 01/14/42 | | 1,125 | | 1,177 |
Series 2005-IQ1 Class AAB
5.178% due 09/15/42 | | 940 | | 987 |
Series 2006-HQ1 Class A4
5.328% due 11/12/41 | | 345 | | 354 |
Series 2006-HQ9 Class A4
5.731% due 07/12/44 | | 965 | | 1,003 |
Series 2007-HQ1 Class A4
5.812% due 04/12/49 | | 1,045 | | 1,069 |
Series 2007-IQ1 Class A4
5.809% due 12/12/49 | | 400 | | 406 |
Morgan Stanley Mortgage Loan Trust
Series 2006-3AR Class 2A3
5.016% due 03/25/36 | | 766 | | 501 |
Nomura Asset Acceptance Corp. (Þ)
Series 2004-R1 Class A1
6.500% due 03/25/34 | | 73 | | 70 |
Series 2004-R2 Class A1
6.500% due 10/25/34 | | 83 | | 79 |
NovaStar Mortgage-Backed Notes (Ê)
Series 2006-MTA Class 2A1A
0.453% due 09/25/46 | | 628 | | 377 |
Prime Mortgage Trust (Ê)
Series 2004-CL1 Class 1A2
0.663% due 02/25/34 | | 88 | | 80 |
Series 2004-CL1 Class 2A2
0.663% due 02/25/19 | | 13 | | 13 |
Residential Accredit Loans, Inc.
Series 2004-QS5 Class A6 (Ê)
0.863% due 04/25/34 | | 165 | | 151 |
Series 2004-QS8 Class A4 (Ê)
0.663% due 06/25/34 | | 274 | | 239 |
Series 2005-QA1 Class 2A1
5.794% due 12/25/35 | | 974 | | 554 |
Series 2005-QA1 Class A41
5.676% due 09/25/35 | | 710 | | 533 |
Series 2005-QA8 Class NB3
5.474% due 07/25/35 | | 403 | | 283 |
| | |
| 178 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2005-QO3 Class A1 (Ê)
0.663% due 10/25/45 | | 759 | | 443 |
Series 2006-QO7 Class 3A2 (Ê)
0.468% due 09/25/46 | | 1,340 | | 538 |
Residential Asset Securitization Trust
Series 2003-A15 Class 1A2 (Ê)
0.713% due 02/25/34 | | 347 | | 309 |
Series 2007-A5 Class 2A3
6.000% due 05/25/37 | | 262 | | 186 |
Residential Funding Mortgage Securities I (Ê)
Series 2003-S5 Class 1A2
0.713% due 11/25/18 | | 405 | | 402 |
Series 2003-S14 Class A5
0.663% due 07/25/18 | | 434 | | 353 |
Series 2003-S20 Class 1A7
0.763% due 12/25/33 | | 1 | | 1 |
Salomon Brothers Mortgage Securities VII, Inc.
Series 2003-UP2 Class A1
4.000% due 12/25/18 | | 151 | | 151 |
Sequoia Mortgage Trust (Ê)
Series 2004-3 Class A
0.908% due 05/20/34 | | 317 | | 267 |
Small Business Administration
Pools (Ê)
3.080% due 09/25/18 | | 138 | | 142 |
Structured Adjustable Rate Mortgage Loan Trust (Ê)
Series 2005-19X Class 1A1
0.583% due 10/25/35 | | 422 | | 275 |
Structured Asset Mortgage Investments, Inc. (Ê)
Series 2005-AR5 Class A2
0.506% due 07/19/35 | | 251 | | 216 |
Structured Asset Securities Corp.
Series 2003-26A Class 3A5
2.535% due 09/25/33 | | 649 | | 619 |
Series 2005-RF3 Class 1A (Ê)(Þ)
0.613% due 06/25/35 | | 132 | | 104 |
Series 2006-11 Class A1 (Þ)
2.461% due 10/25/35 | | 160 | | 135 |
Thornburg Mortgage Securities Trust
Series 2003-2 Class A1 (Ê)
0.943% due 04/25/43 | | 85 | | 80 |
Series 2006-6 Class A1 (Ê)
0.373% due 11/25/46 | | 264 | | 258 |
Series 2007-4 Class 2A1
6.186% due 09/25/37 | | 660 | | 596 |
Series 2007-4 Class 3A1
6.192% due 09/25/37 | | 606 | | 538 |
Wachovia Bank Commercial Mortgage Trust
Series 2005-C16 Class A2
4.380% due 10/15/41 | | 289 | | 294 |
Series 2006-WL7 Class A1 (Ê)(Þ)
0.427% due 09/15/21 | | 143 | | 128 |
Series 2007-WHL Class A1 (Ê)(Þ)
0.334% due 06/15/20 | | 150 | | 133 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Washington Mutual Alternative Mortgage Pass-Through Certificates
Series 2005-4 Class CB11
5.500% due 06/25/35 | | 350 | | 269 |
Series 2007-OA2 Class 2A (Ê)
0.963% due 01/25/47 | | 439 | | 184 |
Washington Mutual Mortgage Pass Through Certificates Series 2003-S9 Class A2 (Ê)
0.813% due 10/25/33 | | 225 | | 222 |
Series 2005-AR1 Class 1A1
4.817% due 10/25/35 | | 27 | | 26 |
Series 2005-AR1 Class A1A1 (Ê)
0.553% due 10/25/45 | | 591 | | 495 |
Series 2005-AR1 Class A1A2 (Ê)
0.543% due 11/25/45 | | 639 | | 461 |
0.553% due 12/25/45 (Å) | | 326 | | 239 |
Series 2005-AR6 Class B3 (Ê)(Å)
0.923% due 04/25/45 | | 445 | | 24 |
Series 2007-HY3 Class 4B1
5.310% due 03/25/37 | | 407 | | 29 |
Series 2007-HY4 Class 1A1 (Ê)
5.446% due 04/25/37 | | 334 | | 253 |
Series 2007-OA2 Class 1A (Ê)
1.163% due 03/25/47 | | 424 | | 255 |
Wells Fargo Mortgage Backed Securities Trust
Series 2004-CC Class A1 (Ê)
4.932% due 01/25/35 | | 384 | | 375 |
Series 2006-2 Class 2A3
5.500% due 03/25/36 | | 665 | | 596 |
Series 2006-AR2 Class 2A1
4.950% due 03/25/36 | | 458 | | 428 |
Series 2006-AR8 Class 2A3
5.028% due 04/25/36 | | 134 | | 127 |
| | | | |
| | | | 552,241 |
| | | | |
| | |
| Municipal Bonds - 0.5% | | | | |
County of Clark Nevada Revenue Bonds
6.820% due 07/01/45 | | 200 | | 221 |
Iowa Tobacco Settlement Authority
Revenue Bonds
6.500% due 06/01/23 | | 80 | | 68 |
Los Angeles Unified School District
General Obligation Unlimited
6.758% due 07/01/34 | | 100 | | 108 |
Municipal Electric Authority of Georgia
Revenue Bonds
6.637% due 04/01/57 | | 180 | | 189 |
6.655% due 04/01/57 | | 150 | | 158 |
New York City Municipal Water Finance
Authority Revenue Bonds
6.491% due 06/15/42 | | 1,700 | | 1,761 |
Public Power Generation Agency
Revenue Bonds
7.242% due 01/01/41 | | 300 | | 304 |
San Diego Tobacco Settlement Revenue
Funding Corp. Revenue Bonds
7.125% due 06/01/32 | | 280 | | 227 |
| | |
| Russell Investment Grade Bond Fund | | 179 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | | |
State of California General Obligation Unlimited
6.650% due 03/01/22 | | | 425 | | 450 |
7.500% due 04/01/34 | | | 100 | | 110 |
5.650% due 04/01/39 (Ê) | | | 100 | | 106 |
7.550% due 04/01/39 | | | 1,640 | | 1,811 |
7.300% due 10/01/39 | | | 220 | | 235 |
State of Illinois General Obligation Unlimited
4.071% due 01/01/14 | | | 1,300 | | 1,313 |
6.725% due 04/01/35 | | | 100 | | 103 |
Tobacco Settlement Finance
Authority of West Virginia
Revenue Bonds
7.467% due 06/01/47 | | | 485 | | 394 |
| | | | | |
| | | | | 7,558 |
| | | | | |
| | |
| Non-US Bonds - 0.6% | | | | | |
Bundesrepublik Deutschland
3.250% due 01/04/20 | | EUR | 2,200 | | 2,999 |
Canadian Government Bond
2.000% due 12/01/14 | | CAD | 1,000 | | 946 |
Fortis Bank Nederland Holding NV
3.000% due 04/17/12 | | EUR | 400 | | 549 |
France Treasury Bill
3.500% due 04/25/20 | | EUR | 400 | | 542 |
French Treasury Note
2.500% due 01/15/15 | | EUR | 400 | | 542 |
Hellenic Republic
6.100% due 08/20/15 | | EUR | 1,120 | | 1,192 |
LeasePlan Corp. NV
3.125% due 02/10/12 | | EUR | 700 | | 960 |
Mexico Government International Bond
6.050% due 01/11/40 | | MXN | 200 | | 196 |
Poland Government Bond Series 1013
5.000% due 10/24/13 | | PLN | 2,540 | | 867 |
Societe Financement de l’Economie Francaise
2.125% due 05/20/12 | | EUR | 400 | | 542 |
| | | | | |
| | | | | 9,335 |
| | | | | |
| | |
| United States Government Agencies - 3.0% | | | | | |
Fannie Mae
5.250% due 08/01/12 | | | 330 | | 356 |
4.750% due 11/19/12 | | | 660 | | 714 |
4.625% due 05/01/13 | | | 1,000 | | 1,072 |
4.625% due 10/15/13 | | | 350 | | 382 |
2.750% due 03/13/14 | | | 2,005 | | 2,048 |
5.250% due 09/15/16 | | | 20 | | 22 |
5.375% due 06/12/17 | | | 1,800 | | 2,009 |
6.625% due 11/15/30 | | | 920 | | 1,127 |
6.210% due 08/06/38 | | | 275 | | 322 |
Federal Farm Credit Bank
5.125% due 08/25/16 | | | 310 | | 344 |
Federal Home Loan Bank
1.000% due 12/28/11 | | | 100 | | 100 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
5.375% due 05/15/19 | | 150 | | 165 |
5.125% due 08/15/19 | | 160 | | 173 |
Federal Home Loan Bank Discount Notes
5.625% due 06/11/21 | | 1,070 | | 1,195 |
Federal Home Loan Banks
1.125% due 05/18/12 | | 120 | | 120 |
1.875% due 06/21/13 | | 1,395 | | 1,400 |
4.625% due 06/12/20 | | 50 | | 52 |
Series VB15
5.000% due 12/21/15 | | 460 | | 509 |
Federal Home Loan Mortgage Corp.
1.125% due 06/01/11 | | 1,900 | | 1,910 |
0.216% due 09/19/11 (Ê) | | 3,800 | | 3,796 |
1.125% due 12/15/11 | | 100 | | 100 |
1.375% due 01/01/13 | | 3,245 | | 3,229 |
2.875% due 02/09/15 (Ñ) | | 1,265 | | 1,278 |
3.750% due 03/27/19 | | 605 | | 598 |
5.625% due 11/23/35 | | 1,240 | | 1,295 |
Federal National Mortgage Association
1.800% due 01/01/13 | | 1,190 | | 1,190 |
1.750% due 05/07/13 | | 2,900 | | 2,903 |
Zero coupon due 07/05/14 | | 1,235 | | 1,091 |
3.300% due 07/30/14 | | 195 | | 196 |
Zero coupon due 10/09/19 (Ñ) | | 710 | | 425 |
5.125% due 08/19/24 | | 615 | | 639 |
5.625% due 07/15/37 | | 45 | | 48 |
Series 2
1.250% due 06/22/12 | | 6,845 | | 6,848 |
Financing Corp. | | | | |
Principal Only STRIP
Series 1P
Zero coupon due 05/11/18 | | 380 | | 274 |
Series 6P
Zero coupon due 08/03/18 | | 160 | | 114 |
Series 7P
Zero coupon due 08/03/18 | | 290 | | 206 |
Series 8P
Zero coupon due 08/03/18 | | 150 | | 107 |
Series 11P
Zero coupon due 02/08/18 | | 100 | | 73 |
Series 15P
Zero coupon due 03/07/19 | | 160 | | 109 |
Series 19P
Zero coupon due 06/06/19 | | 50 | | 34 |
Series B-P
Zero coupon due 04/06/18 | | 300 | | 217 |
Series D-P
Zero coupon due 09/26/19 | | 20 | | 13 |
Zero coupon due 08/03/18 | | 360 | | 256 |
Series E-P
Zero coupon due 11/02/18 | | 360 | | 252 |
Freddie Mac
2.125% due 03/23/12 | | 5,875 | | 5,993 |
5.000% due 04/18/17 | | 2,200 | | 2,410 |
5.050% due 01/26/15 | | 690 | | 763 |
6.750% due 03/15/31 | | 170 | | 212 |
Tennessee Valley Authority
6.150% due 01/15/38 | | 345 | | 395 |
| | |
| 180 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
5.250% due 09/15/39 | | 210 | | 213 |
| | | | |
| | | | 49,297 |
| | | | |
| |
| United States Government Treasuries - 14.2% | | |
United States Treasury Principal Only STRIP | | | | |
Zero coupon due 05/15/18 (Ñ) | | 470 | | 355 |
Zero coupon due 11/15/21 | | 4,801 | | 2,957 |
Zero coupon due 02/15/25 | | 6,680 | | 3,446 |
United States Treasury Inflation Indexed Bonds 2.375% due 01/15/27 | | 215 | | 234 |
2.000% due 01/15/16 (Æ) | | 2,714 | | 2,925 |
2.375% due 01/15/25 | | 2,932 | | 3,192 |
2.000% due 01/15/26 | | 175 | | 181 |
1.750% due 01/15/28 (Æ) | | 9,040 | | 8,974 |
3.875% due 04/15/29 | | 1,398 | | 1,852 |
United States Treasury Notes
4.625% due 08/31/11 (Ñ) | | 1,775 | | 1,870 |
1.750% due 11/15/11 | | 5,060 | | 5,140 |
1.125% due 01/15/12 | | 5,950 | | 5,981 |
1.375% due 05/15/12 | | 6,095 | | 6,143 |
4.750% due 05/31/12 | | 6,280 | | 6,765 |
1.375% due 09/15/12 | | 2,340 | | 2,352 |
3.375% due 11/30/12 | | 7,155 | | 7,544 |
2.750% due 02/28/13 | | 1,090 | | 1,131 |
1.375% due 03/15/13 (Ñ) | | 7,465 | | 7,449 |
1.750% due 04/15/13 (Ñ) | | 1,181 | | 1,190 |
3.125% due 04/30/13 | | 1,960 | | 2,055 |
3.125% due 08/31/13 (Ñ) | | 4,830 | | 5,058 |
4.250% due 11/15/13 | | 1,325 | | 1,440 |
4.000% due 02/15/14 | | 2,835 | | 3,057 |
1.875% due 04/30/14 | | 5,915 | | 5,885 |
2.375% due 08/31/14 | | 3,210 | | 3,240 |
2.375% due 02/28/15 (Ñ) | | 68,975 | | 69,018 |
2.500% due 03/31/15 (Ñ) | | 4,125 | | 4,146 |
4.500% due 11/15/15 | | 910 | | 1,002 |
2.375% due 03/31/16 | | 650 | | 635 |
5.125% due 05/15/16 | | 610 | | 690 |
3.250% due 05/31/16 | | 840 | | 859 |
3.125% due 10/31/16 | | 5,325 | | 5,365 |
3.125% due 04/30/17 | | 5,790 | | 5,794 |
3.500% due 02/15/18 | | 1,095 | | 1,112 |
3.125% due 05/15/19 | | 1,010 | | 976 |
8.125% due 08/15/19 | | 810 | | 1,103 |
3.375% due 11/15/19 (Ñ) | | 6,280 | | 6,149 |
3.625% due 02/15/20 (Ñ) | | 3,290 | | 3,280 |
8.000% due 11/15/21 | | 2,440 | | 3,373 |
6.875% due 08/15/25 (Ñ) | | 3,225 | | 4,201 |
6.000% due 02/15/26 | | 1,965 | | 2,367 |
6.500% due 11/15/26 (Ñ) | | 1,495 | | 1,896 |
5.375% due 02/15/31 | | 795 | | 903 |
4.500% due 02/15/36 | | 1,205 | | 1,211 |
4.375% due 02/15/38 | | 2,265 | | 2,219 |
4.500% due 05/15/38 | | 2,700 | | 2,699 |
3.500% due 02/15/39 | | 1,476 | | 1,233 |
4.250% due 05/15/39 | | 3,845 | | 3,671 |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
4.500% due 08/15/39 | | | 4,230 | | 4,209 |
4.375% due 11/15/39 | | | 4,920 | | 4,797 |
4.625% due 02/15/40 | | | 9,170 | | 9,315 |
| | | | | |
| | | | | 232,639 |
| | | | | |
| | |
Total Long-Term Investments
(cost $1,271,460) | | | | | 1,270,654 |
| | | | | |
| | |
| Preferred Stocks - 0.2% | | | | | |
| Consumer Discretionary - 0.0% | | | | | |
Motors Liquidation Co. (Æ) | | | 31,725 | | 271 |
| | | | | |
| | |
| Financial Services - 0.2% | | | | | |
American International Group, Inc. | | | 32,300 | | 318 |
DG Funding Trust (Å) | | | 392 | | 3,187 |
Federal Home Loan Mortgage Corp. (Æ) | | | 27,050 | | 42 |
Federal National Mortgage
Association (Æ) | | | 18,750 | | 25 |
Federal National Mortgage
Association (Æ) | | | 1,000 | | 2 |
| | | | | |
| | | | | 3,574 |
| | | | | |
| | |
Total Preferred Stocks
(cost $8,340) | | | | | 3,845 |
| | | | | |
| | |
| | | Notional
Amount
$ | | |
| Options Purchased - 0.0% | | | | | |
| (Number of Contracts) | | | | | |
Eurodollar Futures
Sep 2010 99.25 Put (22) | | USD | 22 | | 4 |
Sep 2010 99.00 Put (16) | | USD | 16 | | 3 |
United States Treasury Notes 10 Year
Futures
May 2010 117.00 Call (25) | | USD | 25 | | 28 |
May 2010 117.50 Call (18) | | USD | 18 | | 16 |
May 2010 118.00 Call (18) | | USD | 18 | | 11 |
May 2010 119.00 Call (67) | | USD | 67 | | 16 |
May 2010 112.00 Put (1) | | USD | 1 | | — |
United States Treasury Bond 30 Year
Futures
May 2010 121.00 Call (9) | | USD | 9 | | 2 |
| | | | | |
| | |
Total Options Purchased
(cost $69) | | | | | 80 |
| | | | | |
| | |
| | | Principal
Amount ($)
or Shares | | |
| Short-Term Investments - 21.6% | | | | | |
Aiful Corp. (Þ)
5.000% due 08/10/10 | | | 240 | | 231 |
| | |
| Russell Investment Grade Bond Fund | | 181 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
American Express Credit Corp. (Ê)
Series MTNB
0.399% due 10/04/10 | | 1,300 | | 1,300 |
Bank of America Corp. (Ñ)
4.375% due 12/01/10 | | 900 | | 918 |
BNP Paribas Financial, Inc.
Zero coupon due 06/03/10 | | 5,855 | | 5,854 |
Citigroup Funding, Inc. (Ê)
0.438% due 07/30/10 | | 10,000 | | 10,004 |
Credit Agricole
0.100% due 05/03/10 | | 5,790 | | 5,790 |
Credit Agricole SA (Ê)(Þ)
0.302% due 05/28/10 | | 600 | | 600 |
Daimler Finance NA LLC
4.875% due 06/15/10 | | 575 | | 577 |
5.875% due 03/15/11 | | 300 | | 311 |
DCP Midstream LLC
6.875% due 02/01/11 | | 45 | | 47 |
Deutsche Bank Financial, Inc.
Zero coupon due 05/20/10 | | 5,840 | | 5,839 |
Deutsche Telekom International
Finance BV
8.500% due 06/15/10 | | 250 | | 252 |
Dominion Resources, Inc.
4.750% due 12/15/10 | | 90 | | 92 |
Fannie Mae
7.000% due 01/01/11 | | 1 | | 1 |
8.000% due 01/01/11 | | — | | — |
Federal Home Loan Bank Discount Notes (ç)(ž)
Zero coupon due 05/12/10 | | 2,000 | | 2,000 |
Federal Home Loan Mortgage Corp.
5.125% due 08/23/10 | | 1,820 | | 1,847 |
Federal National Mortgage Association Discount Notes (ž)(ç)
Zero coupon due 08/23/10 | | 525 | | 525 |
0.230% due 09/08/10 | | 4,000 | | 3,997 |
Freddie Mac
7.000% due 08/01/10 | | 2 | | 2 |
6.000% due 09/01/10 | | 2 | | 2 |
7.000% due 10/01/10 | | 1 | | 1 |
7.000% due 12/01/10 | | 1 | | 1 |
6.000% due 01/01/11 | | 11 | | 11 |
7.000% due 01/01/11 | | 1 | | 2 |
8.000% due 01/01/11 | | 2 | | 3 |
6.000% due 02/01/11 | | 1 | | 1 |
6.000% due 03/01/11 | | 2 | | 2 |
Freddie Mac Discount Notes (ç)(ž)
Zero coupon due 07/23/10 | | 27,000 | | 26,988 |
Ginnie Mae
I 6.500% due 10/15/10 | | — | | — |
7.000% due 01/01/11 | | — | | — |
7.000% due 01/15/11 | | 1 | | 1 |
Goldman Sachs Group, Inc. (The)
4.500% due 06/15/10 | | 1,010 | | 1,013 |
Indymac Loan Trust (Ê)
Series 2005-L2 Class A1
0.483% due 01/25/11 | | 446 | | 112 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
International Lease Finance Corp. (Ñ)
4.950% due 02/01/11 | | 1,000 | | 995 |
KeyBank NA (Ê)
Series BKNT
2.502% due 06/02/10 | | 900 | | 901 |
Koninklijke KPN NV
8.000% due 10/01/10 | | 620 | | 638 |
Kraft Foods, Inc. (Ê)
0.928% due 08/11/10 | | 1,700 | | 1,702 |
Lehman Brothers Holdings, Inc. (Ø)
2.951% due 05/25/10 | | 300 | | 65 |
Merrill Lynch & Co., Inc. (Ê)
0.993% due 03/22/11 | | 100 | | 131 |
Metropolitan Life Global Funding I (Ê)(Þ)
0.290% due 05/17/10 | | 900 | | 900 |
Morgan Stanley (Ê)(Ñ)
2.350% due 05/14/10 | | 1,100 | | 1,101 |
New Cingular Wireless Services, Inc.
7.875% due 03/01/11 | | 1,375 | | 1,455 |
Nisource Finance Corp.
7.875% due 11/15/10 | | 465 | | 481 |
Option One Mortgage Securities Corp.
NIM Trust (Ê)(Þ)
Series 2006-1A
0.363% due 12/25/10 | | 884 | | 619 |
Pricoa Global Funding I (Ê)(Å)
1.052% due 06/04/10 | | 1,500 | | 1,501 |
Royal Bank of Scotland PLC (The) (Ê)(Þ)
0.823% due 04/08/11 | | 4,300 | | 4,306 |
Russell U.S. Cash Management Fund (£) | | 210,105,744 | | 210,106 |
Small Business Administration
Series 2000-P10 Class 1
7.449% due 08/01/10 | | 25 | | 26 |
Tyco International Finance SA
6.750% due 02/15/11 | | 110 | | 115 |
UBS Finance Delaware, LLC
Zero coupon due 05/20/10 | | 5,850 | | 5,849 |
United States Cash Management Bill (ç)(ž)
Zero coupon due 06/17/10 | | 10,000 | | 9,998 |
United States Treasury Bills
0.010% due 05/06/10 (ç)(ž) | | 3,050 | | 3,050 |
0.010% due 05/06/10 (ç)(ž)(Ñ)) | | 5,470 | | 5,470 |
0.010% due 05/13/10 (ç)(ž)(Ñ) | | 115 | | 115 |
0.090% due 05/13/10 | | 320 | | 320 |
0.105% due 05/13/10 | | 120 | | 120 |
0.127% due 05/13/10 (ç)(ž)(Ñ) | | 130 | | 130 |
0.010% due 05/20/10 (ç)(ž)(Ñ) | | 5,805 | | 5,805 |
0.010% due 06/03/10 (ç)(ž) | | 10,000 | | 9,999 |
0.010% due 07/08/10 (ç)(ž)(Ñ) | | 15,000 | | 14,996 |
United States Treasury Notes
3.875% due 09/15/10 | | 1,925 | | 1,951 |
4.875% due 04/30/11 (Ñ) | | 1,520 | | 1,586 |
UnitedHealth Group, Inc.
5.250% due 03/15/11 | | 280 | | 290 |
Verizon Communications, Inc. (Ñ)
5.350% due 02/15/11 | | 325 | | 337 |
| | | | |
| | |
Total Short-Term Investments
(cost $353,945) | | | | 353,382 |
| | | | |
| | |
| 182 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| | |
| Repurchase Agreements - 12.6% | | | | |
Agreement with Barclays Capital Inc. and State Street Bank (Tri-Party) of $53,400 dated April 30, 2010, at 0.200% to be repurchased at $53,401 on May 3, 2010 collateralized by: $54,378 par various United States Treasury Obligations, valued at $54,431 | | 53,400 | | 53,400 |
Agreement with BNP Paribas Securities Corp. and State Street Bank (Tri-Party) of $50,900 dated April 30, 2010, at 0.200% to be repurchased at $50,901 on May 3, 2010 collateralized by: $46,304 par various United States Treasury Obligations, valued at $51,944 | | 50,900 | | 50,900 |
Agreement with Deutsche Bank Securities Inc. and State Street Bank (Tri-Party) of $50,900 dated April 30, 2010, at 0.200% to be repurchased at $50,901 on May 3, 2010 collateralized by: $51,921 par various United States Treasury Obligations, valued at $51,970 | | 50,900 | | 50,900 |
Agreement with JP Morgan Securities Inc. and State Street Bank (Tri-Party) of $50,900 dated April 30, 2010, at 0.200% to be repurchased at $50,901 on May 3, 2010 collateralized by: $51,807 par various United States Treasury Obligations, valued at $51,823 | | 50,900 | | 50,900 |
| | | | |
| | |
Total Repurchase Agreements
(cost $206,100) | | | | 206,100 |
| | | | |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
| | |
| Other Securities - 4.1% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 38,167,179 | | 38,167 | |
State Street Securities Lending
Quality Trust (×) | | 29,592,859 | | 29,515 | |
| | | | | |
| | |
Total Other Securities
(cost $67,760) | | | | 67,682 | |
| | | | | |
| | |
Total Investments - 116.1%
(identified cost $1,907,674) | | | | 1,901,743 | |
| | |
Other Assets and Liabilities,
Net - (16.1%) | | | | (263,763 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 1,637,980 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 183 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
Euro-Bobl Futures (Germany) | | 45 | | EUR | | 5,317 | | 06/10 | | 87 |
Euro-Bund Futures (Germany) | | 8 | | EUR | | 999 | | 06/10 | | 21 |
Eurodollar Futures (CME) | | 505 | | USD | | 125,656 | | 06/10 | | 386 |
Eurodollar Futures (CME) | | 300 | | USD | | 74,542 | | 09/10 | | 140 |
Eurodollar Futures (CME) | | 172 | | USD | | 42,645 | | 12/10 | | 291 |
Eurodollar Futures (CME) | | 66 | | USD | | 16,319 | | 03/11 | | 146 |
Three Month Short Sterling Interest Rate Futures (UK) | | 25 | | GBP | | 3,101 | | 06/10 | | 21 |
Three Month Short Sterling Interest Rate Futures (UK) | | 17 | | GBP | | 2,106 | | 09/10 | | 1 |
Three Month Short Sterling Interest Rate Futures (UK) | | 19 | | GBP | | 2,348 | | 12/10 | | 3 |
Ultra Long Term U.S. Treasury Bond Future | | 90 | | USD | | 11,163 | | 06/10 | | 140 |
United States Treasury 2 Year Notes | | 379 | | USD | | 82,462 | | 06/10 | | 193 |
United States Treasury 5 Year Notes | | 1,095 | | USD | | 126,866 | | 06/10 | | 185 |
United States Treasury 10 Year Notes | | 686 | | USD | | 80,884 | | 06/10 | | 691 |
United States Treasury 30 Year Bond | | 199 | | USD | | 12,025 | | 06/10 | | 217 |
| | | | | |
| Short Positions | | | | | | | | | | |
Euro-Bund Futures (Germany) | | 24 | | EUR | | 9 | | 05/10 | | (6) |
United States Treasury 10 Year Notes | | 85 | | USD | | 10,022 | | 06/10 | | (121) |
United States Treasury 30 Year Bond | | 16 | | USD | | 1,905 | | 06/10 | | (51) |
| | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 2,344 |
| | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 184 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
| | | | | | | |
Options Written
(Number of Contracts) | | Notional
Amount | | Market
Value
$ | |
| | | | | | | |
| Cross Currency | | | | | | | |
Jul 2010 90.00 Put (2) | | | | 4,200 | | (14 | ) |
| | | |
| Eurodollar Futures | | | | | | | |
Jun 2010 99.38 Call (8) | | USD | | 20 | | (4 | ) |
Sep 2010 99.13 Call (31) | | USD | | 78 | | (26 | ) |
Mar 2011 98.88 Call (23) | | USD | | 58 | | (21 | ) |
Mar 2011 98.75 Call (25) | | USD | | 63 | | (28 | ) |
Sep 2010 98.63 Put (38) | | USD | | 95 | | (2 | ) |
Mar 2011 98.75 Put (25) | | USD | | 63 | | (18 | ) |
Mar 2011 98.88 Put (23) | | USD | | 58 | | (19 | ) |
| | | |
| Eurodollar Midcurve 1 Year Futures | | | | | | | |
Sep 2010 97.38 Put (482) | | USD | | 1,205 | | (87 | ) |
| | | |
Inflationary Floor
| | | | | | | |
Mar 2020 0.001 Put (1) | | USD | | 1,600 | | (11 | ) |
Apr 2020 0.001 Put (1) | | USD | | 1,000 | | (7 | ) |
| | | |
| Swaptions | | | | | | | |
(Fund Receives/Fund Pays)
USD Three Month LIBOR/USD
3.600% May 2010 0.00 Call (2) | | | | 4,000 | | (18 | ) |
USD Three Month LIBOR/USD
3.500% Jun 2010 0.00 Call (4) | | | | 24,400 | | (117 | ) |
USD Three Month LIBOR/USD
3.250% Aug 2010 0.00 Call (4) | | | | 20,100 | | (73 | ) |
USD Three Month LIBOR/USD 3.250%
Oct 2010 0.00 Call (2) | | | | 4,700 | | (27 | ) |
USD 4.100%/USD Three Month LIBOR
May 2010 0.00 Put (2) | | | | 4,000 | | (2 | ) |
USD 4.500%/USD Three Month LIBOR
Jun 2010 0.00 Put (4) | | | | 25,800 | | (8 | ) |
USD 10.000%/USD Three Month LIBOR
Jul 2010 0.00 Put (1) | | | | 1,600 | | (1 | ) |
USD 4.750%/USD Three Month LIBOR
Aug 2010 0.00 Put (4) | | | | 20,600 | | (45 | ) |
USD 5.500%/USD Three Month LIBOR
Aug 2010 0.00 Put (1) | | | | 1,000 | | — | |
USD 6.000%/USD Three Month LIBOR
Aug 2010 0.00 Put (4) | | | | 17,000 | | (1 | ) |
USD 4.000%/USD Three Month LIBOR
Oct 2010 0.00 Put (1) | | | | 22,100 | | (69 | ) |
USD 5.000%/USD Three Month LIBOR
Oct 2010 0.00 Put (2) | | | | 4,700 | | (16 | ) |
USD 4.000%/USD Three Month LIBOR
Dec 2010 0.00 Put (1) | | | | 26,800 | | (119 | ) |
| | | |
United States Treasury Bonds
| | | | | | | |
May 2010 119.00 Call (6) | | USD | | 6 | | (6 | ) |
| | | |
United States Treasury Notes
10 Year Futures
| | | | | | | |
May 2010 111.00 Put (6) | | USD | | 6 | | — | |
May 2010 114.00 Put (83) | | USD | | 83 | | (3 | ) |
May 2010 115.00 Put (14) | | USD | | 14 | | (1 | ) |
May 2010 119.00 Call (93) | | USD | | 93 | | (22 | ) |
| | | | | | | |
Options Written
(Number of Contracts) | | Notional
Amount | | Market
Value
$ | |
May 2010 121.00 Call (14) | | USD | | 14 | | — | |
Aug 2010 111.00 Put (25) | | USD | | 25 | | (6 | ) |
Aug 2010 119.00 Call (25) | | USD | | 25 | | (18 | ) |
| | | | | | | |
| | | |
Total Liability for Options Written
(premiums received $1,499 ) | | | | | | (789 | ) |
| | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 185 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Barclays Bank PLC | | USD | | 436 | | CNY | | 2,957 | | 06/07/10 | | (2 | ) |
Barclays Bank PLC | | USD | | 118 | | MYR | | 381 | | 06/14/10 | | 1 | |
Barclays Bank PLC | | USD | | 115 | | TWD | | 3,598 | | 06/10/10 | | — | |
BNP Paribas | | JPY | | 17,992 | | USD | | 191 | | 05/06/10 | | (1 | ) |
Citibank | | EUR | | 587 | | USD | | 798 | | 05/18/10 | | 16 | |
Citibank | | JPY | | 9,321 | | USD | | 99 | | 05/06/10 | | — | |
Citibank | | PLN | | 2,556 | | USD | | 895 | | 05/18/10 | | 29 | |
Credit Suisse First Boston | | USD | | 1,209 | | KRW | | 1,375,296 | | 07/28/10 | | 29 | |
Credit Suisse First Boston | | EUR | | 6,375 | | USD | | 8,543 | | 07/26/10 | | 53 | |
Credit Suisse First Boston | | JPY | | 5,370 | | USD | | 57 | | 05/06/10 | | — | |
Credit Suisse First Boston | | JPY | | 8,943 | | USD | | 95 | | 05/06/10 | | — | |
Credit Suisse First Boston | | JPY | | 12,246 | | USD | | 130 | | 05/06/10 | | — | |
Credit Suisse First Boston | | JPY | | 17,995 | | USD | | 191 | | 05/06/10 | | (1 | ) |
Deutsche Bank | | USD | | 209 | | KRW | | 235,083 | | 07/28/10 | | 3 | |
Deutsche Bank | | USD | | 382 | | MXN | | 4,707 | | 07/07/10 | | (3 | ) |
Deutsche Bank | | USD | | 209 | | TWD | | 6,550 | | 06/10/10 | | 1 | |
Deutsche Bank | | CAD | | 585 | | USD | | 579 | | 05/04/10 | | 4 | |
Deutsche Bank | | SGD | | 582 | | USD | | 417 | | 05/03/10 | | (8 | ) |
Goldman Sachs | | JPY | | 138,700 | | USD | | 1,490 | | 05/17/10 | | 14 | |
HSBC | | USD | | 2,083 | | BRL | | 3,764 | | 06/02/10 | | 70 | |
JP Morgan | | USD | | 193 | | AUD | | 212 | | 05/28/10 | | 3 | |
JP Morgan | | USD | | 410 | | SGD | | 582 | | 05/03/10 | | 15 | |
Morgan Stanley | | JPY | | 17,808 | | USD | | 189 | | 05/06/10 | | (1 | ) |
Royal Bank of Scotland | | USD | | 12 | | JPY | | 1,114 | | 05/17/10 | | — | |
Royal Bank of Scotland | | GBP | | 1,701 | | USD | | 2,561 | | 06/24/10 | | (41 | ) |
Royal Bank of Scotland | | JPY | | 3,420 | | USD | | 37 | | 05/17/10 | | 1 | |
UBS | | USD | | 582 | | CAD | | 585 | | 05/04/10 | | (6 | ) |
UBS | | CAD | | 585 | | USD | | 582 | | 07/07/10 | | 6 | |
UBS | | EUR | | 477 | | USD | | 660 | | 05/18/10 | | 27 | |
UBS | | JPY | | 17,994 | | USD | | 191 | | 05/06/10 | | (1 | ) |
| | | | | | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | 208 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 186 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Interest Rate Swaps Contracts | |
Counterparty | | Notional
Amount | | Fund Receives | | Fund Pays | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | |
Barclays Bank PLC | | BRL | | 600 | | 10.835% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (2 | ) |
Barclays Bank PLC | | BRL | | 2,400 | | 11.910% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (15 | ) |
Barclays Bank PLC | | USD | | 100 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 5 | |
Barclays Bank PLC | | USD | | 339 | | Zero coupon | | 4.524% | | 11/15/21 | | (39 | ) |
Barclays Bank PLC | | USD | | 344 | | Zero coupon | | 4.420% | | 11/15/21 | | (34 | ) |
Barclays Bank PLC | | USD | | 661 | | Three Month LIBOR | | 4.540% | | 11/15/21 | | (78 | ) |
Barclays Bank PLC | | USD | | 1,320 | | Three Month LIBOR | | 4.633% | | 11/15/21 | | (175 | ) |
Barclays Bank PLC | | USD | | 530 | | Three Month LIBOR | | Zero coupon | | 02/15/25 | | (9 | ) |
Barclays Bank PLC | | USD | | 540 | | Three Month LIBOR | | Zero coupon | | 02/15/25 | | (12 | ) |
Barclays Bank PLC | | USD | | 680 | | Three Month LIBOR | | Zero coupon | | 02/15/25 | | (15 | ) |
Barclays Bank PLC | | USD | | 1,830 | | Three Month LIBOR | | Zero coupon | | 02/15/25 | | (44 | ) |
BNP Paribas | | BRL | | 400 | | 11.390% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (5 | ) |
BNP Paribas | | BRL | | 1,000 | | 11.880% | | One Month LIBOR | | 01/02/12 | | (7 | ) |
BNP Paribas | | BRL | | 300 | | 12.110% | | One Month LIBOR | | 01/02/14 | | (1 | ) |
Citibank | | MXN | | 6,000 | | 7.330% | | Mexico Interbank 28 Day Deposit Rate | | 01/28/15 | | 8 | |
Citibank | | EUR | | 1,300 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 51 | |
Citibank | | EUR | | 2,500 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 98 | |
Citibank | | USD | | 100 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 5 | |
Credit Suisse Financial Products | | MXN | | 30,000 | | 7.340% | | Mexico Interbank 28 Day Deposit Rate | | 01/28/15 | | 41 | |
Deutsche Bank | | EUR | | 1,200 | | 2.090% | | Consumer Price Index (France) | | 10/15/10 | | 53 | |
Deutsche Bank | | AUD | | 300 | | 4.500% | | Three Month BBSW | | 06/15/11 | | (2 | ) |
Deutsche Bank | | EUR | | 2,500 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 98 | |
Goldman Sachs | | USD | | 1,700 | | Six Month LIBOR | | Six Month LIBOR | | 05/25/10 | | 30 | |
Goldman Sachs | | BRL | | 600 | | 10.990% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (3 | ) |
Goldman Sachs | | BRL | | 3,900 | | 11.890% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (22 | ) |
Goldman Sachs | | BRL | | 600 | | 12.650% | | One Month LIBOR | | 01/02/14 | | 5 | |
Goldman Sachs | | EUR | | 1,800 | | 2.500% | | Six Month EURIBOR | | 06/16/15 | | 14 | |
Goldman Sachs | | MXN | | 20,600 | | 7.640% | | Mexico Interbank 28 Day Deposit Rate | | 03/01/17 | | 21 | |
HSBC | | BRL | | 400 | | 11.140% | | One Month LIBOR | | 01/02/12 | | 2 | |
HSBC | | BRL | | 500 | | 11.360% | | Brazil Interbank Deposit Rate | | 01/02/12 | | — | |
HSBC | | BRL | | 2,900 | | 11.890% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (16 | ) |
HSBC | | BRL | | 100 | | 12.540% | | One Month LIBOR | | 01/02/14 | | 1 | |
JP Morgan | | BRL | | 2,700 | | 12.170% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (3 | ) |
JP Morgan | | BRL | | 600 | | 12.200% | | One Month LIBOR | | 01/02/14 | | (2 | ) |
JP Morgan | | USD | | 1,377 | | Three Month LIBOR | | Zero coupon | | 02/15/25 | | (24 | ) |
Merrill Lynch | | BRL | | 700 | | 10.990% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (5 | ) |
Morgan Stanley | | USD | | 11,000 | | 3.000% | | Three Month LIBOR | | 12/16/10 | | 286 | |
Morgan Stanley | | EUR | | 1,000 | | 2.500% | | Six Month EURIBOR | | 06/16/15 | | 8 | |
Morgan Stanley | | USD | | 5,500 | | 4.000% | | Three Month LIBOR | | 06/16/15 | | 336 | |
Morgan Stanley | | USD | | 300 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 14 | |
Morgan Stanley | | USD | | 1,310 | | Three Month LIBOR | | Zero coupon | | 02/15/25 | | (27 | ) |
Royal Bank of Canada | | AUD | | 1,000 | | 4.500% | | Three Month LIBOR | | 06/15/11 | | (23 | ) |
Royal Bank of Scotland | | USD | | 2,400 | | 3.000% | | Three Month LIBOR | | 12/16/10 | | 62 | |
Royal Bank of Scotland | | USD | | 1,600 | | 4.000% | | Three Month LIBOR | | 12/16/14 | | 131 | |
Royal Bank of Scotland | | USD | | 3,700 | | 4.000% | | Three Month LIBOR | | 06/16/15 | | 226 | |
UBS | | BRL | | 600 | | 11.420% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (3 | ) |
UBS | | BRL | | 300 | | 12.070% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (1 | ) |
UBS | | BRL | | 400 | | 12.250% | | One Month LIBOR | | 01/02/14 | | (1 | ) |
| | | | | | | | | | | | | |
| | |
Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $870 | | | | 927 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 187 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | |
| Corporate Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | | | |
Berkshire Hathaway | | Deutsche Bank | | 0.800% | | USD | | 2,900 | | 1.000% | | | 03/20/13 | | 20 | |
Brazil Government International Bond | | Barclays Bank PLC | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Brazil Government International Bond | | Deutsche Bank | | 1.216% | | USD | | 1,000 | | 1.000% | | | 06/20/15 | | (10 | ) |
Brazil Government International Bond | | Deutsche Bank | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Brazil Government International Bond | | Goldman Sachs | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Brazil Government International Bond | | Morgan Stanley | | 1.216% | | USD | | 500 | | 1.000% | | | 06/20/15 | | (5 | ) |
Centex Corp. | | Deutsche Bank | | 0.876% | | USD | | 850 | | (4.400% | ) | | 12/20/13 | | (119 | ) |
Darden Restaurants, Inc | | Deutsche Bank | | 0.726% | | USD | | 950 | | (2.250% | ) | | 03/20/14 | | (62 | ) |
Darden Restaurants, Inc. | | Citigroupglobal Markets, Inc. | | 0.726% | | USD | | 225 | | (2.730% | ) | | 03/20/14 | | (19 | ) |
DR Horton Inc. | | Citibank | | 1.972% | | USD | | 205 | | (1.000% | ) | | 09/20/16 | | 11 | |
DR Horton Inc. | | Deutsche Bank | | 1.972% | | USD | | 165 | | (1.000% | ) | | 09/20/16 | | 9 | |
DR Horton Inc. | | Goldman Sachs | | 1.972% | | USD | | 165 | | (1.000% | ) | | 09/20/16 | | 9 | |
Gaz Capital for Gazprom | | Chase Securities Inc. | | 1.717% | | USD | | 200 | | 0.970% | | | 12/20/12 | | (3 | ) |
Gaz Capital for Gazprom | | Chase Securities Inc. | | 1.717% | | USD | | 200 | | 1.020% | | | 12/20/12 | | (3 | ) |
Gaz Capital for Gazprom | | Morgan Stanley | | 1.775% | | USD | | 100 | | 2.180% | | | 02/20/13 | | 2 | |
GE Capital Corp. | | Citibank | | 0.825% | | USD | | 1,000 | | 5.000% | | | 06/20/11 | | 48 | |
GE Capital Corp. | | Credit Suisse First Boston | | 0.725% | | USD | | 600 | | 6.550% | | | 12/20/10 | | 37 | |
GE Capital Corp. | | Deutsche Bank | | 0.903% | | USD | | 200 | | 1.500% | | | 09/20/11 | | 2 | |
GE Capital Corp. | | Deutsche Bank | | 1.055% | | USD | | 1,425 | | 1.070% | | | 12/20/12 | | 2 | |
Home Depot, Inc. | | Citigroupglobal Markets, Inc. | | 0.487% | | USD | | 1,095 | | (2.670% | ) | | 03/20/14 | | (101 | ) |
Japan Government International Bond | | Bank of America | | 0.684% | | USD | | 300 | | 1.000% | | | 03/20/15 | | 4 | |
Japan Government International Bond | | Deutsche Bank | | 0.684% | | USD | | 100 | | 1.000% | | | 03/20/15 | | 1 | |
Japan Government International Bond | | JP Morgan | | 0.684% | | USD | | 600 | | 1.000% | | | 03/20/15 | | 8 | |
KB Home | | Citibank | | 2.915% | | USD | | 205 | | (1.000% | ) | | 09/20/16 | | 21 | |
Kohl’s | | Deutsche Bank | | 0.641% | | USD | | 260 | | (1.000% | ) | | 12/20/14 | | (4 | ) |
Kohl’s | | JP Morgan | | 0.641% | | USD | | 260 | | (1.000% | ) | | 12/20/14 | | (4 | ) |
Lowe’s Cos., Inc. | | Citigroupglobal Markets, Inc. | | 0.431% | | USD | | 1,140 | | (1.200% | ) | | 03/20/14 | | (38 | ) |
Metlife, Inc. | | Deutsche Bank | | 1.300% | | USD | | 1,500 | | 2.050% | | | 03/20/13 | | 35 | |
Metlife, Inc. | | UBS | | 1.300% | | USD | | 1,500 | | 2.050% | | | 03/20/13 | | 35 | |
Mexico Government International Bond | | Citibank | | 1.120% | | USD | | 400 | | 1.000% | | | 03/20/15 | | (2 | ) |
Mexico Government International Bond | | Credit Suisse Financial Products | | 1.120% | | USD | | 400 | | 1.000% | | | 03/20/15 | | (2 | ) |
Mexico Government International Bond | | Deutsche Bank | | 1.120% | | USD | | 200 | | 1.000% | | | 03/20/15 | | (1 | ) |
Prudential | | Deutsche Bank | | 1.053% | | USD | | 1,500 | | 2.300% | | | 03/20/13 | | 56 | |
Prudential | | UBS | | 1.053% | | USD | | 1,500 | | 2.300% | | | 03/20/13 | | 56 | |
Pulte Homes, Inc. | | Goldman Sachs | | 1.902% | | USD | | 1,800 | | (1.000% | ) | | 09/20/16 | | 90 | |
SLM Corp. | | JP Morgan | | 3.565% | | USD | | 900 | | 4.300% | | | 03/20/13 | | 22 | |
Target Corp | | Credit Suisse First Boston | | 0.356% | | USD | | 260 | | (1.000% | ) | | 12/20/14 | | (8 | ) |
Target Corp | | Deutsche Bank | | 0.356% | | USD | | 260 | | (1.000% | ) | | 12/20/14 | | (8 | ) |
Target Corp. | | Credit Suisse First Boston | | 1.599% | | USD | | 530 | | (1.000% | ) | | 09/20/16 | | 18 | |
United Kingdom Gilt | | Deutsche Bank | | 0.735% | | USD | | 800 | | 1.000% | | | 12/20/14 | | 8 | |
United Kingdom Gilt | | Deutsche Bank | | 0.735% | | USD | | 100 | | 1.000% | | | 12/20/14 | | 1 | |
United Kingdom Gilt | | Deutsche Bank | | 0.735% | | USD | | 100 | | 1.000% | | | 12/20/14 | | 1 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 300 | | 1.000% | | | 03/20/15 | | 3 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 700 | | 1.000% | | | 03/20/15 | | 8 | |
Wachovia | | JP Morgan | | 0.596% | | USD | | 2,700 | | 3.020% | | | 03/20/13 | | 195 | |
| | | | | | | | | | | | | | | | |
| | |
Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - $19 | | | | | 298 | |
| | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 188 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | |
| Credit Indices | |
Reference
Entity | | Counterparty | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | |
ABX - HE Index for Sub-Prime Home Equity Sector | | Barclays Bank PLC | | USD | | 2,500 | | 0.760% | | | 01/25/38 | | (1,299 | ) |
ABX - HE Index for Sub-Prime Home Equity Sector | | JP Morgan | | USD | | 2,750 | | 0.090% | | | 08/25/37 | | (1,487 | ) |
ABX - HE Index for Sub-Prime Home Equity Sector | | JP Morgan | | USD | | 1,208 | | 0.170% | | | 05/25/46 | | (1,021 | ) |
CMBX AJ Index | | Bank of America | | USD | | 270 | | (0.840% | ) | | 10/12/52 | | 40 | |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 1,335 | | (0.840% | ) | | 10/12/52 | | 200 | |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 1,600 | | (0.840% | ) | | 10/12/52 | | 240 | |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 2,420 | | (0.840% | ) | | 10/12/52 | | 361 | |
CMBX AJ Index | | Credit Suisse First Boston | | USD | | 115 | | (0.840% | ) | | 10/12/52 | | 17 | |
Dow Jones CDX Index | | Chase Securities Inc. | | USD | | 400 | | 1.120% | | | 12/20/12 | | 9 | |
Dow Jones CDX Index | | Deutsche Bank | | USD | | 1,543 | | 0.708% | | | 12/20/12 | | 25 | |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 1,300 | | 1.120% | | | 12/20/12 | | 30 | |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 289 | | 0.548% | | | 12/20/17 | | 4 | |
Dow Jones CDX Index | | JP Morgan | | USD | | 675 | | 0.553% | | | 12/20/17 | | 8 | |
Dow Jones CDX Index | | Morgan Stanley | | USD | | 5,498 | | 0.771% | | | 12/20/12 | | 93 | |
Dow Jones CDX Index | | Morgan Stanley | | USD | | 600 | | 0.963% | | | 12/20/12 | | 11 | |
| | | | | | | | | | | | | | |
| | |
Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - ($2,110) | | | | | (2,769 | ) |
| | | | | | | | | | | | | | |
| | |
Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($2,091) | | | | | (2,471 | ) |
| | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 189 |
Russell Investment Company
Russell Investment Grade Bond Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of
Net Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | Total | | |
| | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 53,984 | | | $ | 517 | | $ | 54,501 | | | 3.3 | |
Corporate Bonds and Notes | | | — | | | | 298,635 | | | | — | | | 298,635 | | | 18.2 | |
International Debt | | | — | | | | 66,448 | | | | — | | | 66,448 | | | 4.1 | |
Mortgage-Backed Securities | | | — | | | | 551,321 | | | | 920 | | | 552,241 | | | 33.7 | |
Municipal Bonds | | | — | | | | 7,558 | | | | — | | | 7,558 | | | 0.5 | |
Non-US Bonds | | | — | | | | 9,335 | | | | — | | | 9,335 | | | 0.6 | |
United States Government Agencies | | | — | | | | 49,297 | | | | — | | | 49,297 | | | 3.0 | |
United States Government Treasuries | | | — | | | | 232,639 | | | | — | | | 232,639 | | | 14.2 | |
Preferred Stocks | | | 658 | | | | — | | | | 3,187 | | | 3,845 | | | 0.2 | |
Options Purchased | | | 80 | | | | — | | | | — | | | 80 | | | — | * |
Short-Term Investments | | | — | | | | 352,763 | | | | 619 | | | 353,382 | | | 21.6 | |
Repurchase Agreements | | | — | | | | 206,100 | | | | — | | | 206,100 | | | 12.6 | |
Other Securities | | | — | | | | 67,682 | | | | — | | | 67,682 | | | 4.1 | |
| | | | | | | | | | | | | | | | | | |
Total Investments | | | 738 | | | | 1,895,762 | | | | 5,243 | | | 1,901,743 | | | 116.1 | |
| | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | (16.1 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 2,344 | | | | — | | | | — | | | 2,344 | | | 0.1 | |
Options Written | | | (275 | ) | | | (514 | ) | | | — | | | (789 | ) | | (— | )* |
Foreign Currency Exchange Contracts | | | (3 | ) | | | 211 | | | | — | | | 208 | | | — | * |
Interest Rate Swap Contracts | | | — | | | | 57 | | | | — | | | 57 | | | — | * |
Credit Default Swaps | | | — | | | | 380 | | | | — | | | 380 | | | — | * |
| | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | 2,066 | | | | 134 | | | | — | | | 2,200 | | | | |
| | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending April 30, 2010 were less than 1% of net assets.
See accompanying notes which are an integral part of the financial statements.
| | |
| 190 | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | Foreign
Currency
Contracts | | Interest Rate
Contracts |
| | | | | | | | | |
Location: Statement of Assets and Liabilities - Assets | | | | | | | | | |
Investments, at market value | | $ | — | | $ | — | | $ | 80 |
Unrealized appreciation on foreign currency exchange contracts | | | — | | | 272 | | | — |
Daily variation margin on futures contracts* | | | — | | | — | | | 2,522 |
Interest rate swap contracts, at market value | | | — | | | — | | | 1,495 |
Credit default swap contracts, at market value | | | 1,740 | | | — | | | — |
| | | | | | | | | |
Total | | $ | 1,740 | | $ | 272 | | $ | 4,097 |
| | | | | | | | | |
Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | $ | 64 | | $ | — |
Daily variation margin on futures contracts* | | | — | | | — | | | 178 |
Interest rate swap contracts, at market value | | | — | | | — | | | 568 |
Credit default swap contracts, at market value | | | 4,211 | | | — | | | — |
Options written, at market value | | | — | | | — | | | 789 |
| | | | | | | | | |
Total | | $ | 4,211 | | $ | 64 | | $ | 1,535 |
| | | | | | | | | |
| | | | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | | Foreign
Currency
Contracts | | Interest Rate
Contracts | |
| | | | | | | | | | | |
Location: Statement of Operations - Net realized gain (loss) | | | | | | | | | | | |
Investments** | | $ | — | | | $ | — | | $ | 262 | |
Futures contracts | | | — | | | | — | | | 4,869 | |
Options Written | | | — | | | | — | | | 1,619 | |
Credit default swap contracts | | | (48 | ) | | | — | | | — | |
Interest rate swap contracts | | | — | | | | — | | | 1,263 | |
Foreign currency-related transactions | | | — | | | | 734 | | | — | |
| | | | | | | | | | | |
Total | | $ | (48 | ) | | $ | 734 | | $ | 8,013 | |
| | | | | | | | | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | | |
Investments*** | | $ | — | | | $ | — | | $ | 52 | |
Futures contracts | | | — | | | | — | | | (1,354 | ) |
Options Written | | | — | | | | — | | | 434 | |
Credit default swap contracts | | | 479 | | | | — | | | — | |
Interest rate swap contracts | | | — | | | | — | | | (720 | ) |
Foreign currency-related transactions | | | — | | | | 135 | | | — | |
| | | | | | | | | | | |
Total | | $ | 479 | | | $ | 135 | | $ | (1,588 | ) |
| | | | | | | | | | | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. |
| | | Only current day’s variation margin is reported within the statement of assets & liabilities |
| ** | | Includes net realized gain (loss) on purchase options as reported in the Schedule of Investments. |
| *** | | Includes net change in unrealized appreciation/depreciation on purchased options as reported in Schedule of Investments. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 191 |
Russell Investment Company
Russell Short Duration Bond Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,031.90 | | $ | 1,020.13 |
Expenses Paid During Period* | | $ | 4.74 | | $ | 4.71 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.94% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,028.40 | | $ | 1,016.41 |
Expenses Paid During Period* | | $ | 8.50 | | $ | 8.45 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.69% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,032.40 | | $ | 1,020.13 |
Expenses Paid During Period* | | $ | 4.74 | | $ | 4.71 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.94% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,033.70 | | $ | 1,021.37 |
Expenses Paid During Period* | | $ | 3.48 | | $ | 3.46 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.69% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 192 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,033.60 | | $ | 1,021.87 |
Expenses Paid During Period* | | $ | 2.97 | | $ | 2.96 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.59% (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). |
| | |
| Russell Short Duration Bond Fund | | 193 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Long-Term Investments - 65.9% | | | | |
| Asset-Backed Securities - 9.3% | | | | |
Ally Master Owner Trust (Ê)(Þ)
Series 2010-1 Class A
2.087% due 01/15/15 | | 1,680 | | 1,682 |
American Express Credit Account Master Trust (Ê)
Series 2005-4 Class A
0.324% due 01/15/15 | | 1,388 | | 1,382 |
Series 2007-7 Class A
0.294% due 02/17/15 | | 3,000 | | 2,985 |
AmeriCredit Automobile Receivables Trust
Series 2009-1 Class A2
2.260% due 05/15/12 | | 669 | | 672 |
Ameriquest Mortgage Securities, Inc. (Ê)
Series 2005-R10 Class A2B
0.483% due 12/25/35 | | 544 | | 509 |
Asset Backed Securities Corp. Home Equity (Ê)
Series 2002-HE1 Class M1
1.904% due 03/15/32 | | 518 | | 386 |
Series 2004-HE6 Class A1
0.538% due 09/25/34 | | 160 | | 138 |
Atlantic City Electric Transition Funding LLC
Series 2003-1 Class A2
4.460% due 10/20/16 | | 1,293 | | 1,378 |
Bear Stearns Asset Backed Securities Trust (Ê)
Series 2007-HE7 Class 1A1
1.263% due 10/25/37 | | 500 | | 349 |
Capital Auto Receivables Asset Trust
Series 2008-2 Class A3A
4.680% due 10/15/12 | | 481 | | 494 |
Capital One Multi-Asset Execution Trust
Series 2005-A6 Class A6 (Ê)
0.353% due 07/15/15 | | 860 | | 854 |
Series 2005-A10 Class A (Ê)
0.334% due 09/15/15 | | 1,365 | | 1,358 |
Series 2005-B1 Class B1
4.900% due 12/15/17 | | 820 | | 876 |
Series 2006-A11 Class A11 (Ê)
0.427% due 06/17/19 | | 430 | | 418 |
Series 2006-B1 Class B1 (Ê)
0.617% due 01/15/19 | | 825 | | 785 |
Series 2006-C1 Class C (Ê)
0.627% due 03/17/14 | | 670 | | 661 |
Series 2006-C2 Class C (Ê)
0.637% due 06/16/14 | | 570 | | 561 |
Series 2006-C3 Class C3 (Ê)
0.574% due 07/15/14 | | 350 | | 344 |
Series 2007-A4 Class A4 (Ê)
0.284% due 03/16/15 | | 1,045 | | 1,041 |
Series 2008-A5 Class A5
4.850% due 02/18/14 | | 1,640 | | 1,703 |
Carrington Mortgage Loan Trust (Ê)
Series 2006-NC5 Class A1
0.313% due 01/25/37 | | 318 | | 304 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Centex Home Equity
Series 2003-C Class AF4
4.960% due 04/25/32 | | 110 | | 110 |
Chase Funding Mortgage Loan Asset-Backed Certificates
Series 2001-4 Class 1A6
6.241% due 01/25/13 | | 10 | | 10 |
Chase Issuance Trust
Series 2005-C2 Class C2 (Ê)
0.694% due 01/15/15 | | 1,585 | | 1,560 |
Series 2007-A9 Class A9 (Ê)
0.284% due 06/16/14 | | 3,700 | | 3,684 |
Series 2007-A15 Class A
4.960% due 09/17/12 | | 2,700 | | 2,745 |
Series 2009-A2 Class A2 (Ê)
1.804% due 04/15/14 | | 800 | | 820 |
CIT Marine Trust
Series 1999-A Class A4
6.250% due 11/15/19 | | 153 | | 146 |
Citibank Credit Card Issuance Trust
Series 2007-A5 Class A5
5.500% due 06/22/12 | | 2,175 | | 2,191 |
Citigroup Mortgage Loan Trust, Inc.
Series 2005-WF1 Class A2
4.490% due 11/25/34 | | 21 | | 20 |
Countrywide Asset-Backed Certificates
Series 2001-BC3 Class A (Ê)
0.743% due 12/25/31 | | 74 | | 39 |
Series 2005-1 Class AF4
5.147% due 07/25/35 | | 582 | | 579 |
Series 2005-4 Class AF3
4.456% due 10/25/35 | | 74 | | 70 |
Series 2005-17 Class 4A2A (Ê)
0.523% due 05/25/36 | | 679 | | 543 |
Series 2006-3 Class 2A2 (Ê)
0.443% due 06/25/36 | | 359 | | 302 |
Series 2006-9 Class 1AF3
5.859% due 10/25/46 | | 260 | | 145 |
Series 2006-15 Class A3
5.689% due 10/25/46 | | 75 | | 51 |
Series 2006-S6 Class A2
5.519% due 03/25/34 | | 391 | | 318 |
Series 2007-4 Class A2
5.530% due 09/25/37 | | 360 | | 327 |
Credit-Based Asset Servicing and Securitization LLC
Series 2007-CB1 Class AF2
5.721% due 01/25/37 | | 715 | | 332 |
Daimler Chrysler Auto Trust
Series 2006-C Class A4
4.980% due 11/08/11 | | 636 | | 639 |
Series 2008-A Class A3A
3.700% due 06/08/12 | | 344 | | 349 |
Discover Card Master Trust
Series 2008-A3 Class A3
5.100% due 10/15/13 | | 4,290 | | 4,463 |
Series 2008-A4 Class A4
5.650% due 12/15/15 | | — | | — |
| | |
| 194 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2009-A2 Class A (Ê)
1.637% due 02/17/15 | | 395 | | 403 |
Series 2010-A1 Class A1 (Ê)
0.987% due 09/15/15 | | 575 | | 579 |
Discover Card Master Trust I (Ê)
Series 1996-4 Class B
0.804% due 10/16/13 | | 1,280 | | 1,273 |
Series 2005-4 Class A2
0.344% due 06/16/15 | | 405 | | 402 |
Series 2006-2 Class A3
0.417% due 01/19/16 | | 1,082 | | 1,068 |
Series 2006-3 Class A1
0.284% due 03/15/14 | | 2,010 | | 2,002 |
Series 2007-3 Class A2
0.387% due 10/16/14 | | 665 | | 661 |
Series 2007-3 Class B2
0.434% due 10/16/14 | | 1,000 | | 981 |
Dunkin Securitization (Þ)
Series 2006-1 Class A2
5.779% due 06/20/31 | | 2,370 | | 2,323 |
E-Trade RV and Marine Trust
Series 2004-1 Class A3
3.620% due 10/08/18 | | 326 | | 327 |
Equity One ABS, Inc.
Series 2003-4 Class M1
5.369% due 10/25/34 | | 613 | | 447 |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2002-50 Class A6
3.614% due 09/27/12 | | 93 | | 91 |
Ford Credit Auto Owner Trust
Series 2009-D Class A2
1.210% due 01/15/12 | | 300 | | 301 |
Ford Credit Floorplan Master Owner
Trust (Ê)(Þ)
Series 2010-1 Class A
1.987% due 12/15/14 | | 915 | | 925 |
Series 2010-3 Class A2
2.037% due 02/15/17 | | 1,225 | | 1,227 |
Fremont Home Loan Trust (Ê)
Series 2006-E Class 2A1
0.323% due 01/25/37 | | 125 | | 105 |
GE Equipment Midticket LLC
Series 2009-1 Class A3
2.340% due 06/17/13 | | 250 | | 253 |
GE-WMC Mortgage Securities LLC (Ê)
Series 2006-1 Class A2A
0.303% due 08/25/36 | | 12 | | 4 |
GSAMP Trust (Ê)
Series 2007-FM1 Class A2A
0.333% due 12/25/36 | | 225 | | 151 |
Harley-Davidson Motorcycle Trust
Series 2007-3 Class A4
5.520% due 11/15/13 | | 2,000 | | 2,088 |
Series 2009-2 Class A3
2.850% due 03/15/14 | | 880 | | 897 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Honda Auto Receivables Owner Trust
Series 2009-2 Class A3
2.790% due 01/15/13 | | 925 | | 944 |
Household Credit Card Master Note Trust I (Ê)
Series 2007-2 Class A
0.804% due 07/15/13 | | 3,860 | | 3,857 |
HSBC Home Equity Loan Trust (Ê)
Series 2005-1 Class A
0.546% due 01/20/34 | | 231 | | 210 |
Long Beach Mortgage Loan Trust (Ê)
Series 2004-4 Class 1A1
0.543% due 10/25/34 | | 20 | | 17 |
Mastr Asset Backed Securities Trust (Ê)
Series 2006-HE5 Class A1
0.323% due 11/25/36 | | 50 | | 50 |
Nissan Auto Receivables Owner Trust
Series 2009-A Class A3
3.200% due 02/15/13 | | 565 | | 580 |
Nissan Master Owner Trust Receivables (Ê)(Þ)
Series 2010-AA Class A
1.487% due 01/15/15 | | 1,655 | | 1,659 |
Providian Master Note Trust (Ê)(Þ)
Series 2006-C1A Class C1
0.887% due 03/15/15 | | 1,305 | | 1,295 |
Railcar Leasing LLC (Þ)
Series 1997-1 Class A2
7.125% due 01/15/13 | | 470 | | 475 |
Renaissance Home Equity Loan Trust
Series 2005-4 Class A3
5.565% due 02/25/36 | | 152 | | 143 |
Series 2006-3 Class AF2
5.580% due 11/25/36 | | 217 | | 180 |
Series 2006-4 Class AF2
5.285% due 01/25/37 | | 585 | | 472 |
Series 2007-2 Class AF2
5.675% due 06/25/37 | | 355 | | 182 |
SBI Heloc Trust (Ê)(Þ)
Series 2006-1A Class 1A2A
0.433% due 08/25/36 | | 53 | | 51 |
SLM Student Loan Trust (Ê)
Series 2006-9 Class A2
0.316% due 04/25/17 | | 83 | | 83 |
Series 2008-2 Class A1
0.616% due 01/25/15 | | 53 | | 53 |
Series 2008-7 Class A2
0.816% due 10/25/17 | | 2,600 | | 2,599 |
Small Business Administration
Participation Certificates
Series 2009-20D Class
1 4.310% due 04/01/29 | | 559 | | 579 |
Structured Asset Securities Corp.
Series 2001-SB1 Class A2
3.375% due 08/25/31 | | 51 | | 44 |
USAA Auto Owner Trust
Series 2008-2 Class A3
4.640% due 10/15/12 | | 256 | | 262 |
| | |
| Russell Short Duration Bond Fund | | 195 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Washington Mutual Master Note Trust (Ê)(Þ)
Series 2007-C1 Class C1
0.654% due 05/15/14 | | 215 | | 215 |
World Omni Auto Receivables Trust
Series 2009-A Class A3
3.330% due 05/15/13 | | 495 | | 507 |
| | | | |
| | | | 69,288 |
| | | | |
| |
| Corporate Bonds and Notes - 17.9% | | |
Abbott Laboratories
5.600% due 05/15/11 | | 160 | | 168 |
AIG SunAmerica Global Financing VI (Þ)
6.300% due 05/10/11 | | 1,500 | | 1,540 |
Allstate Life Global Funding Trusts
5.375% due 04/30/13 | | 200 | | 220 |
Alltel Corp.
7.000% due 07/01/12 | | 1,280 | | 1,424 |
Altria Group, Inc.
8.500% due 11/10/13 | | 1,515 | | 1,781 |
American Airlines Pass Through Trust
Series 01-1
6.817% due 05/23/11 | | 370 | | 370 |
American Express Bank FSB
Series BKNT
5.500% due 04/16/13 | | 300 | | 324 |
American Express Credit Corp.
Series C
7.300% due 08/20/13 | | 1,535 | | 1,749 |
American Express Travel Related Services Co., Inc. (Þ)
5.250% due 11/21/11 | | 2,020 | | 2,107 |
American International Group, Inc.
4.950% due 03/20/12 | | 100 | | 102 |
Series WI 8.250% due 08/15/18 | | 100 | | 107 |
Anheuser-Busch InBev Worldwide, Inc. (Þ)
7.200% due 01/15/14 | | 930 | | 1,071 |
AT&T Corp.
7.300% due 11/15/11 | | 455 | | 496 |
AT&T Mobility LLC
6.500% due 12/15/11 | | 310 | | 336 |
AT&T, Inc.
4.950% due 01/15/13 | | 1,500 | | 1,618 |
Bank of America Corp.
4.500% due 04/01/15 | | 955 | | 964 |
Bank One Corp.
5.900% due 11/15/11 | | 1,360 | | 1,447 |
Bear Stearns Cos. LLC (The)
5.550% due 01/22/17 | | 915 | | 956 |
Berkshire Hathaway Finance Corp.
Series WI
4.000% due 04/15/12 | | 440 | | 464 |
Best Buy Co., Inc.
6.750% due 07/15/13 | | 205 | | 229 |
Boston Scientific Corp.
4.500% due 01/15/15 | | 860 | | 844 |
6.400% due 06/15/16 | | 390 | | 409 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Carolina Power & Light Co.
5.300% due 01/15/19 | | 415 | | 446 |
Case New Holland, Inc. (Þ)
7.750% due 09/01/13 | | 450 | | 474 |
CEDC Finance Corp. International, Inc. (Þ)
9.125% due 12/01/16 | | 300 | | 318 |
Cemex Finance LLC (Þ)
9.500% due 12/14/16 | | 245 | | 247 |
CenterPoint Energy Houston Electric LLC
Series U
7.000% due 03/01/14 | | 325 | | 370 |
CIT Group, Inc.
7.000% due 05/01/13
| | 58 | | 57 |
7.000% due 05/01/14 | | 87 | | 84 |
7.000% due 05/01/15 | | 387 | | 369 |
7.000% due 05/01/17 | | 204 | | 194 |
7.000% due 05/01/16 | | 145 | | 138 |
Citibank NA
1.875% due 06/04/12 | | 500 | | 507 |
Series FXD
1.875% due 05/07/12 | | 1,100 | | 1,116 |
Citigroup Funding, Inc.
1.875% due 10/22/12 | | 400 | | 404 |
2.250% due 12/10/12 | | 2,200 | | 2,243 |
Citigroup, Inc. 5.100% due 09/29/11
2.125% due 04/30/12 | | 1,200
1,900 | | 1,248
1,938 |
5.625% due 08/27/12 | | 1,585 | | 1,669 |
5.500% due 04/11/13 | | 700 | | 739 |
Commonwealth Bank of Australia (Ê)(Þ)
0.714% due 07/12/13 | | 4,600 | | 4,626 |
Commonwealth Edison Co.
Series 98
6.150% due 03/15/12 | | 250 | | 271 |
Delta Air Lines, Inc.
Series 00A2
7.570% due 05/18/12 | | 1,185 | | 1,213 |
Devon Energy Corp.
5.625% due 01/15/14 | | 615 | | 678 |
Dexia Credit Local NY (Ê)(Þ)
0.652% due 03/05/13 | | 2,800 | | 2,802 |
DirecTV Holdings LLC
4.750% due 10/01/14 | | 845 | | 893 |
Discover Financial Services
10.250% due 07/15/19 | | 430 | | 527 |
Dominion Resources, Inc.
Series B
6.250% due 06/30/12 | | 350 | | 383 |
Dow Chemical Co. (The)
4.850% due 08/15/12 | | 1,180 | | 1,248 |
Dr Pepper Snapple Group, Inc.
6.120% due 05/01/13 | | 500 | | 557 |
E*Trade Financial Corp.
12.500% due 11/30/17 | | 128 | | 153 |
EI du Pont de Nemours & Co.
5.875% due 01/15/14 | | 190 | | 213 |
El Paso Corp.
8.250% due 02/15/16 | | 340 | | 369 |
El Paso Performance-Linked Trust(Þ)
7.750% due 07/15/11 | | 300 | | 312 |
| | |
| 196 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
El Paso Pipeline Partners Operating Co. LLC
6.500% due 04/01/20 | | 475 | | 490 |
Enterprise Products Operating LLC
4.600% due 08/01/12 | | 1,000 | | 1,056 |
5.900% due 04/15/13 | | 175 | | 191 |
Express Scripts, Inc.
6.250% due 06/15/14 | | 290 | | 325 |
Farmers Insurance Exchange (Þ)
6.000% due 08/01/14 | | 100 | | 101 |
FirstEnergy Solutions Corp.
4.800% due 02/15/15 | | 655 | | 678 |
Ford Motor Credit Co. LLC
9.875% due 08/10/11 | | 395 | | 418 |
3.048% due 01/13/12 (Ê) | | 300 | | 291 |
Fortune Brands, Inc.
3.000% due 06/01/12 | | 745 | | 752 |
FPL Group Capital, Inc.
5.625% due 09/01/11 | | 240 | | 253 |
Freescale Semiconductor, Inc. (Å)
9.250% due 04/15/18 | | 600 | | 624 |
General Electric Capital Corp.
2.125% due 12/21/12 | | 200 | | 204 |
2.800% due 01/08/13 | | 3,050 | | 3,101 |
Series GMTN
2.000% due 09/28/12 | | 500 | | 508 |
2.625% due 12/28/12 | | 500 | | 515 |
General Mills, Inc.
5.650% due 09/10/12 | | 415 | | 454 |
GMAC, Inc.
6.000% due 12/15/11 | | 100 | | 100 |
6.875% due 08/28/12 | | 300 | | 306 |
7.500% due 12/31/13 | | 4,400 | | 4,477 |
Goldman Sachs Group, Inc. (The)
3.625% due 08/01/12 | | 1,135 | | 1,156 |
5.450% due 11/01/12 | | 610 | | 646 |
Goodyear Tire & Rubber Co. (The)
8.625% due 12/01/11 | | 705 | | 736 |
HCA, Inc.(Þ)
7.250% due 09/15/20 | | 725 | | 761 |
Health Net, Inc.
6.375% due 06/01/17 | | 500 | | 465 |
Hewlett-Packard Co.
4.250% due 02/24/12 | | 330 | | 349 |
Hutchison Whampoa International, Ltd. (Þ)
5.750% due 09/11/19 | | 685 | | 717 |
IBM International Group Capital LLC
5.050% due 10/22/12 | | 335 | | 364 |
International Lease Finance Corp.
5.750% due 06/15/11 | | 595 | | 594 |
5.000% due 09/15/12 | | 2,300 | | 2,216 |
6.375% due 03/25/13 | | 1,900 | | 1,829 |
Jabil Circuit, Inc.
7.750% due 07/15/16 | | 555 | | 588 |
Jackson National Life Fund LLC
0.524% due 08/06/11 | | 2,600 | | 2,560 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
John Deere Capital Corp.
4.900% due 09/09/13 | | 650 | | 710 |
JPMorgan Chase & Co.
4.850% due 06/16/11 | | 1,160 | | 1,206 |
0.902% due 02/26/13 (Ê) | | 1,030 | | 1,033 |
Series 1 (Æ)(ƒ)
7.900% due 04/29/49 | | 620 | | 651 |
JPMorgan Chase Bank NA(Ê)
0.587% due 06/13/16 | | 1,400 | | 1,315 |
Kansas City Southern Railway
13.000% due 12/15/13 | | 125 | | 149 |
Kraft Foods, Inc.
2.625% due 05/08/13 | | 580 | | 593 |
5.375% due 02/10/20 | | 845 | | 876 |
Kroger Co. (The)
3.900% due 10/01/15 | | 695 | | 710 |
LBI Escrow Corp.(Þ)
8.000% due 11/01/17 | | 370 | | 383 |
Lehman Brothers Holdings Capital
Trust VII (ƒ)(Ø)
5.857% due 11/29/49 | | 270 | | — |
Marathon Oil Corp.
6.500% due 02/15/14 | | 150 | | 169 |
Medco Health Solutions, Inc.
6.125% due 03/15/13 | | 485 | | 533 |
7.250% due 08/15/13 | | 770 | | 880 |
Medtronic, Inc.
4.500% due 03/15/14 | | 230 | | 247 |
3.000% due 03/15/15 | | 1,230 | | 1,242 |
Merrill Lynch & Co., Inc.(Ê)
0.516% due 07/25/11 | | 500 | | 497 |
Metropolitan Life Global Funding I (Þ)
0.698% due 07/13/11 (Ê) | | 2,000 | | 1,997 |
2.875% due 09/17/12 | | 175 | | 178 |
5.125% due 04/10/13 | | 2,695 | | 2,900 |
MGM Mirage(Þ)
11.125% due 11/15/17 | | 350 | | 398 |
Microsoft Corp.
4.200% due 06/01/19 | | 1,000 | | 1,037 |
Morgan Stanley
6.600% due 04/01/12 | | 400 | | 433 |
6.625% due 04/01/18 | | 855 | | 907 |
Navistar International Corp.
8.250% due 11/01/21 | | 420 | | 443 |
NB Capital Trust IV
8.250% due 04/15/27 | | 360 | | 363 |
NBC Universal, Inc. (Å)
3.650% due 04/30/15 | | 845 | | 853 |
5.150% due 04/30/20 | | 1,950 | | 1,973 |
ONEOK Partners, LP
5.900% due 04/01/12 | | 800 | | 855 |
PACCAR, Inc.
6.875% due 02/15/14 | | 700 | | 804 |
Pacific Life Global Funding(Þ)
5.150% due 04/15/13 | | 900 | | 952 |
Pfizer, Inc.
4.450% due 03/15/12 | | 490 | | 519 |
| | |
| Russell Short Duration Bond Fund | | 197 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Philip Morris International, Inc.
4.875% due 05/16/13 | | 3,250 | | 3,512 |
6.875% due 03/17/14 | | 380 | | 439 |
Pricoa Global Funding I (Ê)(Þ)
0.438% due 01/30/12 | | 200 | | 196 |
0.488% due 09/27/13 | | 200 | | 191 |
Principal Life Income Funding Trusts
5.300% due 04/24/13 | | 200 | | 215 |
Procter & Gamble Co.
4.600% due 01/15/14 | | 1,365 | | 1,477 |
Prudential Financial, Inc.
6.200% due 01/15/15 | | 310 | | 345 |
Quebecor World Capital Corp.
6.125% due 11/15/13 | | 70 | | — |
4.875% due 11/15/49 | | 205 | | — |
Qwest Corp.
7.875% due 09/01/11 | | 850 | | 902 |
Rainbow National Services LLC (Þ)
8.750% due 09/01/12 | | 400 | | 406 |
Regions Financial Corp.
0.455% due 06/26/12 (Ê) | | 1,100 | | 1,031 |
7.750% due 11/10/14 | | 100 | | 108 |
Roche Holdings, Inc. (Þ)
6.000% due 03/01/19 | | 1,000 | | 1,121 |
Rockies Express Pipeline LLC (Þ)
3.900% due 04/15/15 | | 670 | | 666 |
SABMiller PLC (Þ)
5.500% due 08/15/13 | | 445 | | 485 |
SBA Tower Trust (Å)
4.254% due 04/15/40 | | 675 | | 693 |
SLM Corp. (Ê)
0.546% due 10/25/11 | | 200 | | 192 |
Southern Copper Corp.
6.375% due 07/27/15 | | 300 | | 331 |
Sun Life Financial Global Funding, LP (Ê)(Þ)
0.452% due 07/06/11 | | 1,300 | | 1,286 |
SunTrust Banks, Inc.
5.250% due 11/05/12 | | 2,150 | | 2,280 |
TD Ameritrade Holding Corp.
4.150% due 12/01/14 | | 1,310 | | 1,338 |
Textron, Inc.
6.200% due 03/15/15 | | 595 | | 638 |
Time Warner Cable, Inc.
8.250% due 02/14/14 | | 935 | | 1,104 |
Transcontinental Gas Pipe Line Corp.
Series B
7.000% due 08/15/11 | | 600 | | 639 |
Tyco International Finance SA
4.125% due 10/15/14 | | 680 | | 712 |
Union Pacific Corp.
6.500% due 04/15/12 | | 345 | | 376 |
Verizon Communications, Inc.
4.350% due 02/15/13 | | 1,955 | | 2,079 |
Wachovia Capital Trust III (ƒ)
5.800% due 03/29/49 | | 755 | | 653 |
Wachovia Corp.
5.500% due 05/01/13 | | 1,100 | | 1,196 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Wal-Mart Stores, Inc.
4.250% due 04/15/13 | | 300 | | 321 |
Walt Disney Co. (The)
4.500% due 12/15/13 | | 385 | | 417 |
WellPoint Health Networks, Inc.
6.375% due 01/15/12 | | 471 | | 507 |
Wells Fargo & Co.
4.375% due 01/31/13 | | 725 | | 766 |
Series K (ƒ)
7.980% due 03/29/49 | | 4,600 | | 4,853 |
Williams Partners, LP (Þ)
3.800% due 02/15/15 | | 530 | | 533 |
5.250% due 03/15/20 | | 835 | | 859 |
XTO Energy, Inc.
4.625% due 06/15/13 | | 655 | | 704 |
Yum! Brands, Inc.
4.250% due 09/15/15 | | 595 | | 619 |
| | | | |
| | | | 133,353 |
| | | | |
| | |
| International Debt - 4.9% | | | | |
America Movil SAB de CV (Þ)
3.625% due 03/30/15 | | 1,115 | | 1,127 |
ANZ National International, Ltd. (Þ)
6.200% due 07/19/13 | | 200 | | 221 |
Banco Nacional de Desenvolvimento Economico e Social (Þ)
6.500% due 06/10/19 | | 660 | | 701 |
Banco Santander Chile
1.557% due 04/20/12 (Ê)(Å) | | 700 | | 700 |
2.875% due 11/13/12 (Þ) | | 1,200 | | 1,202 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. (Þ)
3.850% due 01/22/15 | | 600 | | 621 |
BHP Billiton Finance USA, Ltd.
5.500% due 04/01/14 | | 200 | | 222 |
Cenovus Energy, Inc. (Þ)
4.500% due 09/15/14 | | 335 | | 353 |
Colombia Government International Bond
7.375% due 03/18/19 | | 570 | | 655 |
Corp. Andina de Fomento
8.125% due 06/04/19 | | 250 | | 299 |
Danske Bank A/S (Þ)
2.500% due 05/10/12 | | 200 | | 204 |
Deutsche Telekom International Finance BV
4.875% due 07/08/14 | | 905 | | 959 |
Dexia Credit Local (Ê)(Å)
0.808% due 04/29/14 | | 1,400 | | 1,398 |
Digicel Group, Ltd. (Þ)
9.125% due 01/15/15 | | 770 | | 778 |
10.500% due 04/15/18 | | 300 | | 322 |
Enel Finance International SA (Þ)
3.875% due 10/07/14 | | 625 | | 639 |
Galaxy Entertainment Finance Co., Ltd. (Þ)
9.875% due 12/15/12 | | 350 | | 367 |
Husky Energy, Inc.
5.900% due 06/15/14 | | 785 | | 869 |
| | |
| 198 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
ING Bank NV
2.625% due 02/09/12 (Þ) | | 3,400 | | 3,483 |
1.090% due 03/30/12 (Ê)(Å) | | 300 | | 300 |
3.900% due 03/19/14 (Þ) | | 300 | | 318 |
Intesa Sanpaolo
Series YCD
2.375% due 12/21/12 | | 2,100 | | 2,117 |
Kansas City Southern de Mexico SA de CV
12.500% due 04/01/16 | | 100 | | 118 |
8.000% due 02/01/18 (Þ) | | 450 | | 469 |
Landmark CDO, Ltd. (Ê)(Þ)
Series 2003-3A Class A1LA
0.773% due 01/15/16 | | 884 | | 820 |
Morgan Stanley (Ê)
0.988% due 03/01/13 | | 1,700 | | 2,155 |
Norske Skogindustrier ASA (Þ)
6.125% due 10/15/15 | | 535 | | 349 |
PE Paper Escrow GmbH (Þ)
12.000% due 08/01/14 | | 400 | | 456 |
Rio Tinto Finance USA, Ltd.
5.875% due 07/15/13 | | 1,225 | | 1,354 |
Russian Foreign Bond - Eurobond (Þ)
3.625% due 04/29/15 | | 700 | | 683 |
SABMiller PLC (Þ)
6.500% due 07/01/16 | | 240 | | 276 |
Santander US Debt SA Unipersonal (Ê)(Þ)
1.089% due 03/30/12 | | 1,800 | | 1,800 |
Swedish Housing Finance Corp. (Þ)
3.125% due 03/23/12 | | 1,500 | | 1,549 |
Telefonica Emisiones SAU
2.582% due 04/26/13 | | 595 | | 597 |
6.421% due 06/20/16 | | 890 | | 994 |
TNK-BP Finance SA (Þ)
Series 144a
7.500% due 07/18/16 | | 490 | | 524 |
TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ)
7.700% due 08/07/13 | | 1,100 | | 1,213 |
Transocean, Inc.
5.250% due 03/15/13 | | 610 | | 660 |
Tyco Electronics Group SA
6.000% due 10/01/12 | | 760 | | 820 |
UBS AG (Ê)
1.352% due 02/23/12 | | 700 | | 704 |
Volvo Treasury AB (Þ)
5.950% due 04/01/15 | | 635 | | 658 |
Westpac Banking Corp.
2.250% due 11/19/12 | | 2,000 | | 2,024 |
XL Capital, Ltd.
5.250% due 09/15/14 | | 515 | | 538 |
Series E (ƒ)
6.500% due 12/31/49 | | 270 | | 221 |
| | | | |
| | | | 36,837 |
| | | | |
| | |
| Loan Agreements - 0.1% | | | | |
Energy Future Holdings Corp., Term Loan B
3.751% due 10/10/14 | | 330 | | 268 |
3.790% due 10/10/14 | | 3 | | 2 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
First Data Corp., Term Loan B
3.013% due 09/24/14 | | 232 | | 209 |
First Data Corp., Term Loan B 1
3.031% due 09/24/14 | | 7 | | 6 |
3.040% due 09/24/14 | | 12 | | 11 |
Newsday Corp.
10.500% due 07/09/13 | | 275 | | 299 |
Supermedia, Inc. Exit Term Loan
11.000% due 12/31/15 | | 94 | | 88 |
| | | | |
| | | | 883 |
| | | | |
| | |
| Mortgage-Backed Securities - 23.6% | | | | |
American Home Mortgage Investment Trust (Ê)
Series 2004-3 Class 5A
2.340% due 10/25/34 | | 881 | | 749 |
Series 2004-4 Class 4A | | | | |
2.387% due 02/25/45 | | 286 | | 260 |
Asset Securitization Corp.
Series 1997-D5 Class A3
7.201% due 02/14/43 | | 145 | | 156 |
Banc of America Alternative Loan Trust
Series 2005-3 Class 2A1
5.500% due 04/25/20 | | 164 | | 150 |
Series 2005-9 Class 5A1 | | | | |
5.500% due 10/25/20 | | 59 | | 58 |
Banc of America Commercial Mortgage, Inc.
Series 2000-2 Class B
7.378% due 09/15/32 | | 130 | | 130 |
Series 2000-2 Class C
7.438% due 09/15/32 | | 410 | | 411 |
Series 2002-PB2 Class C
6.349% due 06/11/35 | | 155 | | 158 |
Series 2003-1 Class SBB (Þ)
5.860% due 03/11/32 | | 478 | | 523 |
Series 2003-1 Class SBC (Þ)
5.790% due 03/11/32 | | 652 | | 711 |
Series 2003-1 Class SBE (Þ)
6.770% due 03/11/32 | | 965 | | 1,078 |
Series 2004-4 Class A3
4.128% due 07/10/42 | | 21 | | 21 |
Series 2005-1 Class A4
5.203% due 11/10/42 | | 850 | | 883 |
Series 2006-2 Class A4
5.738% due 05/10/45 | | 275 | | 288 |
Series 2007-2 Class AAB
5.639% due 04/10/49 | | 210 | | 214 |
Banc of America Funding Corp.
Series 2005-D Class A1 (Ê)
2.990% due 05/25/35 | | 4,743 | | 4,665 |
Series 2006-2 Class 2A18
5.750% due 03/25/36 | | 1,900 | | 1,478 |
Series 2006-A Class 1A1 (Ê)
4.454% due 02/20/36 | | 244 | | 232 |
| | |
| Russell Short Duration Bond Fund | | 199 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-F Class 1A2 (Ê)
5.156% due 07/20/36 | | 90 | | 45 |
Series 2006-I Class 5A1 (Ê)
6.063% due 10/20/46 | | 648 | | 571 |
Banc of America Mortgage Securities, Inc. | | | | |
Series 2004-2 Class 5A1
6.500% due 10/25/31 | | 84 | | 83 |
Series 2004-I Class 2A2 (Ê)
3.677% due 10/25/34 | | 478 | | 453 |
Series 2004-L Class 1A1 (Ê)
3.756% due 01/25/35 | | 40 | | 39 |
Series 2004-L Class 2A1 (Ê)
3.307% due 01/25/35 | | 1,455 | | 1,340 |
Series 2005-G Class 2A1 (Ê)
4.908% due 08/25/35 | | 235 | | 197 |
Bear Stearns Adjustable Rate Mortgage Trust
Series 2003-1 Class 5A1
5.452% due 04/25/33 | | 245 | | 241 |
Series 2003-8 Class 2A1 (Ê)
3.552% due 01/25/34 | | 155 | | 153 |
Series 2005-6 Class 1A1
3.724% due 08/25/35 | | 198 | | 147 |
Series 2007-3 Class 1A1
5.378% due 05/25/47 | | 117 | | 91 |
Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.952% due 05/25/35 | | 666 | | 501 |
Series 2005-7 Class 22A1
5.119% due 09/25/35 | | 43 | | 33 |
Series 2006-3 Class 33A1 (Ê)
6.026% due 05/25/36 | | 599 | | 366 |
Bear Stearns Asset Backed Securities Trust
6.500% due 01/01/32 | | 450 | | 451 |
Series 2003-AC3 Class A1
4.500% due 07/25/33 | | 227 | | 211 |
Bear Stearns Commercial Mortgage Securities
Series 2000-WF1 Class E
8.141% due 02/15/32 | | 490 | | 490 |
Series 2000-WF2 Class C
7.590% due 10/15/32 | | 200 | | 204 |
Series 2001-TOP Class A1
5.060% due 11/15/16 | | 49 | | 49 |
Series 2001-TOP Class A2
6.480% due 02/15/35 | | 248 | | 256 |
Series 2001-TOP Class A3
5.610% due 11/15/33 | | 50 | | 52 |
Series 2004-PWR Class A2
4.254% due 07/11/42 | | 223 | | 223 |
Series 2004-PWR Class A3
4.565% due 07/11/42 | | 540 | | 548 |
Series 2007-T26 Class A4
5.471% due 01/12/45 | | 100 | | 103 |
Bear Stearns Mortgage Funding Trust (Ê)
Series 2007-AR1 Class 2A1
0.333% due 02/25/37 | | 153 | | 152 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
5.578% due 01/26/36 | | 206 | | 132 |
Series 2007-R6 Class 2A1
5.621% due 12/26/46 | | 143 | | 94 |
Chase Commercial Mortgage Securities Corp.
Series 2000-2 Class B
7.782% due 07/15/32 | | 415 | | 415 |
Series 2000-3 Class A2
7.319% due 10/15/32 | | 19 | | 19 |
Chase Mortgage Finance Corp.
Series 2007-A1 Class 8A1
4.212% due 02/25/37 | | 520 | | 524 |
Citigroup Commercial Mortgage Trust | | | | |
Series 2006-C5 Class AM
5.462% due 10/15/49 | | 640 | | 585 |
Commercial Mortgage Acceptance Corp.
Series 1998-C2 Class E
7.269% due 09/15/30 | | 546 | | 546 |
Commercial Mortgage Asset Trust
Series 1999-C2 Class A2
7.546% due 11/17/32 | | 15 | | 15 |
Series 1999-C2 Class E
7.640% due 11/17/32 | | 50 | | 49 |
Commercial Mortgage Pass Through Certificates
Series 2001-J1A Class A2 (Þ)
6.457% due 02/16/34 | | 138 | | 139 |
Series 2001-J1A Class B (Þ)
6.614% due 02/16/34 | | 180 | | 185 |
Series 2003-LB1 Class A2
4.084% due 06/10/38 | | 600 | | 617 |
Series 2006-C8 Class A4
5.306% due 12/10/46 | | 400 | | 390 |
Community Program Loan Trust
Series 1987-A Class A4
4.500% due 10/01/18 | | 618 | | 623 |
Countrywide Alternative Loan Trust
Series 2003-J2 Class A1
6.000% due 10/25/33 | | 150 | | 148 |
Series 2004-12C Class 1A1
5.000% due 07/25/19 | | 1,405 | | 1,357 |
Countrywide Home Loan Mortgage Pass Through Trust
Series 2004-12 Class 1M
3.952% due 08/25/34 | | 2,247 | | 188 |
Series 2004-22 Class A3
3.511% due 11/25/34 | | 194 | | 175 |
Series 2004-HYB Class 1A1
3.379% due 02/20/35 | | 341 | | 311 |
Series 2005-29 Class A1
5.750% due 12/25/35 | | 1,008 | | 864 |
Series 2005-HYB Class 5A1 (Ê)
5.250% due 02/20/36 | | 722 | | 504 |
Series 2006-1 Class A2
6.000% due 03/25/36 | | 983 | | 836 |
| | |
| 200 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2006-21 Class A9
5.750% due 02/25/37 | | 532 | | 520 |
Series 2006-HYB Class 1A2
3.367% due 06/20/36 | | 74 | | 5 |
Series 2006-HYB Class 3A1A
5.975% due 05/20/36 | | 535 | | 386 |
Series 2006-R2 Class AF1 (Ê)(Þ)
0.683% due 07/25/36 | | 473 | | 358 |
Series 2007-1 Class A1
6.000% due 03/25/37 | | 3,747 | | 3,067 |
Credit Suisse First Boston Mortgage Securities Corp.
Series 1998-C1 Class D
7.170% due 05/17/40 | | 15 | | 15 |
Series 2001-CF2 Class A4
6.505% due 02/15/34 | | 68 | | 69 |
Series 2001-CF2 Class B
6.718% due 02/15/34 | | 490 | | 501 |
Series 2001-CK1 Class A3
6.380% due 12/18/35 | | 85 | | 86 |
Series 2001-CK1 Class C
6.730% due 12/18/35 | | 145 | | 146 |
Series 2001-SPG Class A2 (Þ)
6.515% due 08/13/18 | | 20 | | 21 |
Series 2002-CKN Class C1
6.376% due 04/15/37 | | 835 | | 842 |
Series 2002-CKP Class A3
6.439% due 12/15/35 | | 565 | | 598 |
Series 2002-CKS Class B
5.333% due 11/15/36 | | 450 | | 463 |
Series 2005-C3 Class A2
4.512% due 07/15/37 | | 101 | | 101 |
Series 2005-C4 Class A2
5.017% due 08/15/38 | | 585 | | 585 |
Series 2005-C6 Class A4
5.230% due 12/15/40 | | 10 | | 10 |
Credit Suisse Mortgage Capital Certificates
Series 2006-C2 Class A3
5.846% due 03/15/39 | | 100 | | 102 |
Crown Castle Towers LLC (Þ)
Series 2006-1A Class AFX
5.245% due 11/15/36 | | 160 | | 167 |
Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2003-4XS Class A6A
4.820% due 10/25/33 | | 540 | | 500 |
Series 2007-AR1 Class A3B (Ê)
0.333% due 01/25/47 | | 51 | | 50 |
DLJ Commercial Mortgage Corp.
Series 1998-CG1 Class B1
6.910% due 06/10/31 | | 12 | | 12 |
Series 2000-CF1 Class A1B
7.620% due 06/10/33 | | — | | — |
Series 2000-CF1 Class A4
8.020% due 06/10/33 | | 305 | | 305 |
Series 2000-CKP Class A1B
7.180% due 11/10/33 | | 1,011 | | 1,016 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Fannie Mae
6.000% due 2011 | | 15 | | 15 |
6.500% due 2011 | | 5 | | 5 |
5.000% due 2013 | | 198 | | 205 |
6.000% due 2013 | | 87 | | 94 |
6.000% due 2014 | | 273 | | 294 |
5.500% due 2016 | | 478 | | 512 |
5.500% due 2017 | | 728 | | 784 |
6.000% due 2017 | | 93 | | 99 |
7.000% due 2017 | | 81 | | 89 |
4.000% due 2018 | | 2,181 | | 2,276 |
7.000% due 2024 | | 1,796 | | 1,937 |
2.645% due 2033 (Ê) | | 53 | | 55 |
6.000% due 2033 | | — | | — |
3.420% due 2035 (Ê) | | 217 | | 225 |
4.682% due 2035 (Ê) | | 2,246 | | 2,360 |
4.941% due 2035 (Ê) | | 13,628 | | 14,248 |
6.000% due 2036 | | 303 | | 323 |
5.500% due 2037 | | — | | — |
6.000% due 2037 | | 7,539 | | 8,036 |
6.000% due 2038 | | 4,833 | | 5,148 |
6.000% due 2039 | | 250 | | 267 |
1.714% due 2041 (Ê) | | 496 | | 497 |
1.663% due 2042 (Ê) | | 197 | | 197 |
30 Year TBA (Ï) | | | | |
4.500% | | 4,000 | | 4,032 |
5.500% | | 935 | | 913 |
Fannie Mae Grantor Trust
Series 2001-T3 Class A1
7.500% due 11/25/40 | | 378 | | 431 |
Series 2001-T4 Class A1
7.500% due 07/25/41 | | 60 | | 68 |
Series 2001-T10 Class A1
7.000% due 12/25/41 | | 89 | | 99 |
Series 2001-T10 Class A2
7.500% due 12/25/41 | | 49 | | 56 |
Series 2002-T19 Class A1
6.500% due 07/25/42 | | 674 | | 738 |
Fannie Mae REMICS
Series 2003-16 Class BH
5.000% due 03/25/17 | | 694 | | 718 |
Series 2003-24 Class PU
3.500% due 11/25/15 | | 23 | | 23 |
Series 2003-63 Class GU
4.000% due 07/25/33 | | 71 | | 73 |
Series 2003-75 Class NB
3.250% due 08/25/18 | | 149 | | 151 |
Series 2004-70 Class EB
5.000% due 10/25/24 | | 335 | | 358 |
Series 2007-30 Class AF (Ê)
0.573% due 04/25/37 | | 451 | | 446 |
Series 2007-39 Class EF (Ê)
0.513% due 05/25/37 | | 228 | | 226 |
Series 2007-63 Class FC (Ê)
0.613% due 07/25/37 | | 2,734 | | 2,721 |
Series 2007-73 Class A1 (Ê)
0.323% due 07/25/37 | | 328 | | 299 |
| | |
| Russell Short Duration Bond Fund | | 201 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2009-69 Class MB
4.000% due 09/25/29 | | 265 | | 251 |
Series 2009-96 Class DB
4.000% due 11/25/29 | | 265 | | 249 |
Series 2010-15 Class FD (Ê)
1.003% due 03/25/40 | | 3,480 | | 3,481 |
Fannie Mae Whole Loan
Series 2002-W3 Class A4
6.500% due 11/25/41 | | 478 | | 523 |
Series 2003-W2 Class 1A1
6.500% due 07/25/42 | | 261 | | 285 |
FDIC Structured Sale Guaranteed Notes (Þ)
Series 2010-L2A Class A
3.000% due 09/30/19 | | 2,350 | | 2,347 |
Series 2010-S1 Class 1A (Ê)
0.823% due 02/25/48 | | 961 | | 964 |
Series A-1
0.010% due 10/25/11 | | 1,000 | | 985 |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2002-51 Class 1A
6.500% due 09/25/43 | | 218 | | 236 |
Series 2003-54 Class 2A
6.500% due 02/25/43 | | 185 | | 202 |
Series 2005-63 Class 1A1 (Ê)
1.663% due 02/25/45 | | 493 | | 496 |
First Union Commercial Mortgage Securities, Inc.
Series 1997-C2 Class D
7.120% due 11/18/29 | | 350 | | 376 |
First Union National Bank Commercial Mortgage
Series 2000-C2 Class A2
7.202% due 10/15/32 | | 307 | | 309 |
Series 2001-C2 Class A2
6.663% due 01/12/43 | | 770 | | 791 |
First Union National Bank-Bank of America Commercial Mortgage Trust
Series 2001-C1 Class A2
6.136% due 03/15/33 | | 86 | | 87 |
Series 2001-C1 Class C
6.403% due 03/15/33 | | 320 | | 326 |
First Union-Lehman Brothers-Bank of America
Series 1998-C2 Class C
6.730% due 11/18/35 | | 426 | | 435 |
Series 1998-C2 Class D
6.778% due 11/18/35 | | 1,175 | | 1,259 |
Freddie Mac
6.000% due 2011 | | 38 | | 40 |
6.000% due 2013 | | 32 | | 34 |
5.500% due 2014 | | 19 | | 20 |
6.000% due 2014 | | 40 | | 43 |
6.000% due 2016 | | 194 | | 209 |
6.000% due 2018 | | 172 | | 186 |
5.500% due 2029 | | 468 | | 498 |
6.000% due 2029 | | 52 | | 56 |
9.000% due 2030 | | 322 | | 364 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
6.000% due 2031 | | 130 | | 141 |
6.000% due 2033 | | 270 | | 294 |
4.936% due 2035 (Ê) | | 412 | | 428 |
5.500% due 2038 | | 429 | | 454 |
5.500% due 2039 | | 571 | | 604 |
Freddie Mac REMICS
Series 2003-255 Class PB
5.500% due 08/15/30 | | 3 | | 3 |
Series 2003-258 Class DG
5.000% due 03/15/32 | | 660 | | 697 |
Series 2003-258 Class NS
3.250% due 09/15/15 | | 79 | | 80 |
Series 2003-261 Class JA
3.760% due 03/15/29 | | 544 | | 557 |
Series 2003-262 Class GE
4.500% due 04/15/17 | | 128 | | 132 |
Series 2003-263 Class AB
4.500% due 06/15/18 | | 970 | | 1,015 |
Series 2003-265 Class WT
4.500% due 08/15/18 | | 810 | | 857 |
Series 2004-285 Class BA
4.500% due 02/15/20 | | 346 | | 352 |
Series 2006-314 Class LF (Ê)
0.637% due 05/15/36 | | 436 | | 439 |
Series 2007-333 Class BF (Ê)
0.487% due 07/15/19 | | 234 | | 233 |
Series 2007-333 Class FT (Ê)
0.487% due 08/15/19 | | 573 | | 570 |
Series 2008-341 Class JB
4.500% due 02/15/23 | | 360 | | 375 |
Series 2010-364 Class JA
1.500% due 03/15/15 | | 2,793 | | 2,789 |
GE Capital Commercial Mortgage Corp.
Series 2000-1 Class A2
6.496% due 01/15/33 | | 234 | | 239 |
Series 2000-1 Class C
6.734% due 01/15/33 | | 25 | | 25 |
Series 2001-1 Class A2
6.531% due 05/15/33 | | 246 | | 254 |
Series 2001-1 Class B
6.719% due 05/15/33 | | 345 | | 355 |
Series 2001-1 Class D
7.108% due 05/15/33 | | 465 | | 479 |
Series 2001-3 Class A1
5.560% due 06/10/38 | | 276 | | 281 |
Series 2001-3 Class A2
6.070% due 06/10/38 | | 151 | | 159 |
Series 2002-1A Class A3
6.269% due 12/10/35 | | 470 | | 499 |
Series 2004-C2 Class A2
4.119% due 03/10/40 | | 116 | | 117 |
Series 2005-C1 Class A2
4.353% due 06/10/48 | | 114 | | 116 |
Series 2005-C1 Class A3
4.578% due 06/10/48 | | 130 | | 133 |
Series 2005-C3 Class A4
5.046% due 07/10/45 | | 75 | | 75 |
| | |
| 202 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Ginnie Mae I
9.500% due 2017 | | — | | — |
6.500% due 2038 | | 483 | | 524 |
Ginnie Mae II (Ê)
3.625% due 2027 | | 40 | | 42 |
4.000% due 2032 | | 61 | | 64 |
GMAC Commercial Mortgage Securities, Inc.
Series 1999-C1 Class D
7.194% due 05/15/33 | | 33 | | 33 |
Series 2000-C2 Class B
7.594% due 08/16/33 | | 580 | | 580 |
Series 2001-C1 Class A2
6.465% due 04/15/34 | | 23 | | 24 |
Series 2001-C1 Class B
6.670% due 04/15/34 | | 535 | | 552 |
Series 2004-C3 Class A4
4.547% due 12/10/41 | | 1,340 | | 1,361 |
GMAC Mortgage Corp. Loan Trust
Series 2005-AR2 Class 4A (Ê)
5.102% due 05/25/35 | | 81 | | 73 |
Series 2007-HE2 Class A2
6.054% due 12/25/37 | | 749 | | 397 |
Government National Mortgage Association
Series 2006-67 Class A
3.947% due 11/16/30 | | 787 | | 812 |
Series 2007-4 Class A
4.206% due 06/16/29 | | 920 | | 955 |
Greenpoint Mortgage Funding Trust (Ê)
Series 2006-AR8 Class 1A1A
0.343% due 01/25/47 | | 265 | | 249 |
Greenpoint Mortgage Pass-Through Certificates (Ê)
Series 2003-1 Class A1
2.999% due 10/25/33 | | 233 | | 194 |
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.444% due 03/10/39 | | 100 | | 100 |
GSMPS Mortgage Loan Trust (Þ)
Series 1998-1 Class A
8.000% due 09/19/27 | | 76 | | 76 |
Series 1998-2 Class A
7.750% due 05/19/27 | | 390 | | 380 |
Series 1998-3 Class A
7.750% due 09/19/27 | | 19 | | 19 |
Series 1999-3 Class A
8.000% due 08/19/29 | | 29 | | 29 |
Series 2005-RP1 Class 1A3
8.000% due 01/25/35 | | 368 | | 348 |
Series 2005-RP1 Class 1A4
8.500% due 01/25/35 | | 237 | | 225 |
Series 2006-RP1 Class 1A2
7.500% due 01/25/36 | | 307 | | 286 |
Series 2006-RP1 Class 1A3
8.000% due 01/25/36 | | 129 | | 121 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
GSR Mortgage Loan Trust
Series 2004-7 Class 1A1
3.614% due 06/25/34 | | 317 | | 294 |
Series 2005-AR6 Class 2A1 (Ê)
2.948% due 09/25/35 | | 481 | | 468 |
Series 2006-1F Class 5A2
6.000% due 02/25/36 | | 38 | | 11 |
Series 2006-3F Class 2A3
5.750% due 03/25/36 | | 1,118 | | 961 |
Series 2007-AR1 Class 1A1
3.693% due 03/25/37 | | 4,326 | | 2,794 |
Harborview Mortgage Loan Trust
Series 2005-4 Class 3A1
4.626% due 07/19/35 | | 174 | | 136 |
Series 2006-12 Class 2A11 (Ê)
0.346% due 01/19/38 | | 158 | | 158 |
Indymac Index Mortgage Loan Trust (Ê)
Series 2006-AR1 Class 1A1A
0.353% due 11/25/46 | | 73 | | 73 |
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB Class C
6.633% due 03/15/33 | | 200 | | 203 |
Series 2002-C1 Class A3
5.376% due 07/12/37 | | 195 | | 206 |
Series 2002-C2 Class A1
4.326% due 12/12/34 | | 289 | | 294 |
Series 2003-C1 Class B
5.095% due 01/12/37 | | 155 | | 157 |
Series 2004-CBX Class A3
4.184% due 01/12/37 | | 22 | | 22 |
Series 2005-CB1 Class A2
5.016% due 08/12/37 | | 125 | | 125 |
JP Morgan Commercial Mortgage Finance Corp.
Series 2000-C10 Class B
7.748% due 08/15/32 | | 509 | | 508 |
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB Class A2
6.044% due 11/15/35 | | 269 | | 273 |
Series 2001-CIB Class D
6.751% due 03/15/33 | | 345 | | 354 |
Series 2003-C1 Class A2
4.985% due 01/12/37 | | 310 | | 327 |
Series 2006-CB1 Class A4
5.814% due 06/12/43 | | 165 | | 173 |
Series 2007-LD1 Class A4
5.882% due 02/15/51 | | 100 | | 100 |
Series 2009-IWS Class A1 (Þ)
4.314% due 12/05/27 | | 552 | | 568 |
Series 2009-IWS Class A2 (Þ)
5.633% due 12/05/27 | | 535 | | 571 |
JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1 (Ê)
5.015% due 02/25/35 | | 39 | | 39 |
| | |
| Russell Short Duration Bond Fund | | 203 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Series 2005-A4 Class 1A1
5.384% due 07/25/35 | | 279 | | 270 |
Series 2005-A8 Class 1A1
5.406% due 11/25/35 | | — | | — |
Series 2006-A6 Class 1A2
5.942% due 10/25/36 | | 81 | | 72 |
LB Commercial Conduit Mortgage Trust
Series 1998-C1 Class E
7.000% due 02/18/30 | | 525 | | 571 |
Series 1999-C1 Class C
7.020% due 06/15/31 | | 363 | | 363 |
Series 1999-C1 Class D
7.020% due 06/15/31 | | 1,500 | | 1,497 |
LB-UBS Commercial Mortgage Trust
Series 2000-C3 Class B
7.950% due 03/15/32 | | 120 | | 121 |
Series 2000-C4 Class A2
7.370% due 08/15/26 | | 181 | | 181 |
Series 2000-C4 Class B
7.480% due 07/15/32 | | 415 | | 417 |
Series 2000-C4 Class C
7.610% due 07/15/32 | | 165 | | 166 |
Series 2000-C5 Class A2
6.510% due 12/15/26 | | 125 | | 126 |
Series 2001-C3 Class B
6.512% due 06/15/36 | | 175 | | 182 |
Series 2003-C7 Class A4
4.931% due 09/15/35 | | 790 | | 832 |
Series 2004-C2 Class A3
3.973% due 03/15/29 | | 300 | | 306 |
Series 2004-C4 Class A2
4.567% due 06/15/29 | | 27 | | 27 |
Series 2004-C7 Class A5
4.628% due 10/15/29 | | 232 | | 239 |
Lehman Mortgage Trust
Series 2006-1 Class 3A3
5.500% due 02/25/36 | | 204 | | 179 |
Master Reperforming Loan Trust (Þ)(Å)
Series 2005-1 Class 1A3
7.000% due 08/25/34 | | 228 | | 217 |
Series 2005-1 Class 1A5
8.000% due 08/25/34 | | 442 | | 427 |
Series 2005-2 Class 1A4
8.000% due 05/25/35 | | 482 | | 462 |
Master Specialized Loan Trust (Þ)
Series 2005-2 Class A2
5.150% due 07/25/35 | | 177 | | 167 |
MASTR Adjustable Rate Mortgages Trust
Series 2005-1 Class B1
3.656% due 03/25/35 | | 329 | | 36 |
Mellon Residential Funding Corp. (Ê)
Series 2000-TBC Class A1
0.734% due 06/15/30 | | 585 | | 521 |
Merrill Lynch Mortgage Investors, Inc. (Ê)
Series 2005-A10 Class A
0.473% due 02/25/36 | | 56 | | 45 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Merrill Lynch Mortgage Trust
Series 2005-CIP Class A2
4.960% due 07/12/38 | | 338 | | 342 |
Series 2006-C1 Class A1
5.528% due 05/12/39 | | 316 | | 320 |
Series 2006-C1 Class A4
5.655% due 05/12/39 | | 130 | | 135 |
Series 2008-C1 Class A4
5.690% due 02/12/51 | | 475 | | 476 |
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-6 Class A4
5.485% due 03/12/51 | | 200 | | 191 |
MLCC Mortgage Investors, Inc.
Series 2005-1 Class 2A1
2.367% due 04/25/35 | | 340 | | 324 |
Series 2005-1 Class 2A2
2.367% due 04/25/35 | | 729 | | 672 |
Series 2005-3 Class 5A (Ê)
0.513% due 11/25/35 | | 104 | | 92 |
Morgan Stanley Capital I
Series 1999-LIF Class A2
7.110% due 04/15/33 | | — | | — |
Series 2004-HQ3 Class A2
4.050% due 01/13/41 | | 117 | | 117 |
Series 2004-IQ8 Class A3
4.500% due 06/15/40 | | 26 | | 26 |
Series 2005-HQ6 Class A1
4.646% due 08/13/42 | | 344 | | 344 |
Morgan Stanley Dean Witter Capital I
Series 2001-FRM Class E (Þ)
6.691% due 07/12/16 | | 305 | | 313 |
Series 2001-IQA Class A3
5.720% due 12/18/32 | | 49 | | 49 |
Series 2001-PGM Class G (Þ)
7.691% due 03/11/16 | | 1,395 | | 1,469 |
Series 2001-TOP Class B
6.810% due 02/15/33 | | 510 | | 521 |
Series 2001-TOP Class C
6.790% due 07/15/33 | | 505 | | 495 |
Series 2001-TOP Class E (Þ)
7.351% due 02/15/33 | | 55 | | 55 |
Series 2002-TOP Class B
6.080% due 01/15/39 | | 1,100 | | 1,162 |
Morgan Stanley Mortgage Loan Trust
Series 2006-2 Class 6A
6.500% due 02/25/36 | | 436 | | 349 |
Nomura Asset Acceptance Corp.
Series 2005-WF1 Class 2A2
4.786% due 03/25/35 | | 223 | | 206 |
Prime Mortgage Trust (Ê)
Series 2004-CL1 Class 1A2
0.663% due 02/25/34 | | 88 | | 80 |
Series 2004-CL1 Class 2A2
0.663% due 02/25/19 | | 13 | | 13 |
RBSCF Trust (Å)
Series 2010-MB1 Class A2
3.686% due 04/15/24 | | 810 | | 818 |
| | |
| 204 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
Residential Accredit Loans, Inc.
Series 2005-QS1 Class 2A1
6.000% due 09/25/35 | | 328 | | 253 |
Residential Asset Mortgage Products, Inc.
Series 2004-SL4 Class A3
6.500% due 07/25/32 | | 49 | | 49 |
Residential Asset Securitization Trust
Series 2005-A10 Class A3
5.500% due 09/25/35 | | 1,101 | | 872 |
Residential Funding Mortgage Securities I
Series 2006-S10 Class 1A7
6.000% due 10/25/36 | | 700 | | 554 |
Series 2006-SA3 Class 3A1
6.036% due 09/25/36 | | 401 | | 309 |
Series 2007-S9 Class 1A1
6.000% due 10/25/37 | | 250 | | 211 |
Salomon Brothers Mortgage Securities VII, Inc.
Series 2000-C3 Class B
6.758% due 12/18/33 | | 75 | | 76 |
Series 2001-C1 Class E
6.310% due 12/18/35 | | 130 | | 126 |
Series 2001-C2 Class C
6.842% due 11/13/36 | | 195 | | 202 |
Series 2002-KEY Class C
5.045% due 03/18/36 | | 70 | | 70 |
Series 2003-UP2 Class A1
4.000% due 12/25/18 | | 320 | | 320 |
SBA CMBS Trust (Þ)
Series 2006-1A Class B
5.451% due 11/15/36 | | 95 | | 99 |
Structured Adjustable Rate Mortgage Loan Trust
Series 2005-22 Class 4A2
5.323% due 12/25/35 | | 18 | | 4 |
Structured Asset Mortgage Investments, Inc. (Ê)
Series 2002-AR3 Class A1
0.916% due 09/19/32 | | 23 | | 21 |
Structured Asset Securities Corp.
Series 2001-21A Class 1A1 (Ê)
2.393% due 01/25/32 | | 16 | | 16 |
Series 2003-34A Class 6A
4.891% due 11/25/33 | | 556 | | 537 |
Series 2005-6 Class B2
5.311% due 05/25/35 | | 178 | | 17 |
Suntrust Adjustable Rate Mortgage Loan Trust (Ê)
Series 2007-2 Class 3A3
5.692% due 04/25/37 | | 8,822 | | 7,400 |
Thornburg Mortgage Securities Trust (Ê)
Series 2006-6 Class A1
0.373% due 11/25/46 | | 352 | | 345 |
Wachovia Bank Commercial Mortgage Trust
Series 2003-C5 Class B
4.107% due 06/15/35 | | 45 | | 45 |
Series 2004-C14 Class A2
4.368% due 08/15/41 | | 763 | | 778 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Series 2005-C20 Class A5
5.087% due 07/15/42 | | 35 | | 36 |
Series 2007-C31 Class A4
5.509% due 04/15/47 | | 100 | | 96 |
Washington Mutual Mortgage Pass Through Certificates
Series 2002-AR6 Class A (Ê)
1.863% due 06/25/42 | | 77 | | 63 |
Series 2002-AR9 Class 1A (Ê)
1.863% due 08/25/42 | | 198 | | 151 |
Series 2003-AR7 Class A7 (Ê)
2.830% due 08/25/33 | | 230 | | 225 |
Series 2004-AR1 Class A2A (Ê)
0.620% due 11/25/34 | | 595 | | 441 |
Series 2005-AR1 Class A1A1 (Ê)
0.553% due 10/25/45 | | 148 | | 124 |
Series 2006-AR1 Class 1A4
5.586% due 11/25/36 | | — | | — |
Series 2006-AR1 Class 2A (Ê)
3.114% due 09/25/46 | | 500 | | 375 |
Series 2006-AR8 Class 1A5
5.837% due 08/25/46 | | 1,347 | | 279 |
Series 2006-AR8 Class 2A3 (Ê)
6.091% due 08/25/36 | | 28 | | 7 |
Series 2007-HY3 Class 4A1
5.310% due 03/25/37 | | 1,179 | | 1,061 |
Wells Fargo Mortgage Backed Securities Trust
Series 2004-BB Class A2 (Ê)
2.903% due 01/25/35 | | 262 | | 250 |
Series 2004-BB Class A4 (Ê)
2.903% due 01/25/35 | | 922 | | 920 |
Series 2004-CC Class A1 (Ê)
4.932% due 01/25/35 | | 413 | | 403 |
Series 2004-E Class A2 (Ê)
4.500% due 05/25/34 | | 604 | | 606 |
Series 2004-EE Class 3A1 (Ê)
3.827% due 12/25/34 | | 263 | | 262 |
Series 2004-I Class 1A1
3.337% due 07/25/34 | | 300 | | 296 |
Series 2005-9 Class 1A1
4.750% due 10/25/35 | | 803 | | 796 |
Series 2005-12 Class 1A7
5.500% due 11/25/35 | | 152 | | 77 |
Series 2005-17 Class 1A1
5.500% due 01/25/36 | | 457 | | 438 |
Series 2005-AR1 Class 2A1
2.999% due 10/25/35 | | 1,905 | | 1,760 |
Series 2005-AR2 Class 2A1 (Ê)
2.879% due 03/25/35 | | 442 | | 408 |
Series 2005-AR2 Class 2A2 (Ê)
2.879% due 03/25/35 | | 448 | | 426 |
Series 2005-AR4 Class 2A2
2.972% due 04/25/35 | | 222 | | 218 |
Series 2005-AR8 Class 2A1
3.131% due 06/25/35 | | 107 | | 107 |
Series 2006-3 Class A1
5.500% due 03/25/36 | | 1,243 | | 1,136 |
| | |
| Russell Short Duration Bond Fund | | 205 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | | |
Series 2006-4 Class 2A3
5.750% due 04/25/36 | | | 705 | | 259 |
Series 2006-AR1 Class 2A2
5.587% due 11/25/36 | | | 519 | | 152 |
Series 2006-AR1 Class 2A4 (Ê)
5.958% due 10/25/36 | | | 73 | | 17 |
Series 2006-AR1 Class 4A1 (Ê)
5.508% due 07/25/36 | | | 905 | | 725 |
Series 2006-AR1 Class 5A1 (Ê)
5.491% due 07/25/36 | | | — | | — |
Series 2006-AR1 Class A1 (Ê)
5.218% due 10/25/36 | | | 3,028 | | 2,533 |
Series 2006-AR2 Class 2A1
4.950% due 03/25/36 | | | 744 | | 695 |
Series 2006-AR4 Class 1A1 (Ê)
5.828% due 04/25/36 | | | 123 | | 112 |
Series 2006-AR4 Class 2A1 (Ê)
5.724% due 04/25/36 | | | 848 | | 775 |
Series 2006-AR5 Class 2A1 (Ê)
5.487% due 04/25/36 | | | 736 | | 611 |
Series 2006-AR6 Class 7A1 (Ê)
5.105% due 03/25/36 | | | 68 | | 65 |
Series 2007-14 Class 1A1
6.000% due 10/25/37 | | | — | | — |
| | | | | |
| | | | | 176,088 |
| | | | | |
| | |
| Municipal Bonds - 0.6% | | | | | |
Massachusetts Educational Financing Authority (Ê)
Series 2008-1 Class A1
1.266% due 04/25/38 | | | 1,563 | | 1,572 |
South Carolina Student Loan Corp. (Ê)
Series 2008-1 Class A1
0.752% due 09/02/14 | | | 45 | | 45 |
Series 2008-1 Class A4
1.252% due 09/03/24 | | | 400 | | 407 |
South Carolina Student Loan Corp. Revenue Bonds (Ê)
Series 2008-1 Class A2
0.802% due 03/01/18
| | | 600 | | 603 |
Series 2008-1 Class A3
1.002% due 03/02/20 | | | 700 | | 704 |
State of Illinois General Obligation Unlimited
2.766% due 01/01/12 | | | 1,000 | | 1,012 |
| | | | | |
| | | | | 4,343 |
| | | | | |
| | |
| Non-US Bonds - 1.3% | | | | | |
Asian Development Bank
6.000% due 01/20/15 | | AUD | 465 | | 429 |
Brazil Notas do Tesouro Nacional Serie F Series NTNF
10.000% due 01/01/17 | | BRL | 900 | | 480 |
10.000% due 01/01/21 | | BRL | 1,695 | | 871 |
Canadian Government Bond
4.000% due 06/01/16 | | CAD | 730 | | 750 |
FCE Bank PLC
7.125% due 01/16/12 | | EUR | 1,100 | | 1,487 |
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Fortis Bank Nederland Holding NV
3.000% due 04/17/12 | | EUR | 100 | | 137 |
Gaz Capital SA for Gazprom (Þ)
7.510% due 07/31/13 | | | 600 | | 650 |
German Treasury Bills
5.000% due 01/04/12 | | EUR | 140 | | 200 |
4.000% due 01/04/18 | | EUR | 150 | | 218 |
Inter-American Development Bank
6.500% due 08/20/19 | | AUD | 720 | | 673 |
Lehman Brothers Holdings, Inc. ()
Zero coupon due 12/31/49 | | EUR | 950 | | 291 |
Mexican Bonos Desarr
7.250% due 12/15/16 | | MXN | 10,445 | | 853 |
SLM Corp.
4.875% due 12/17/12 | | GBP | 500 | | 742 |
Societe Financement de l’Economie Francaise
2.125% due 05/20/12 | | EUR | 300 | | 407 |
3.375% due 05/05/14 (Þ) | | EUR | 1,300 | | 1,351 |
| | | | | |
| | | | | 9,539 |
| | | | | |
| | |
| United States Government Agencies - 2.1% | | | | | |
Fannie Mae
5.250% due 08/01/12 | | | 3,095 | | 3,338 |
Federal Home Loan Mortgage Corp.
1.125% due 06/01/11 | | | 1,500 | | 1,508 |
0.216% due 09/19/11 (Ê) | | | 3,000 | | 2,997 |
Federal National Mortgage Association
2.000% due 01/01/12 | | | 210 | | 213 |
1.750% due 05/07/13 | | | 2,500 | | 2,503 |
2.000% due 10/09/19 | | | 8,005 | | 4,787 |
Freddie Mac
2.125% due 03/23/12 | | | 325 | | 331 |
| | | | | |
| | | | | 15,677 |
| | | | | |
| | |
| United States Government Treasuries - 6.1% | | | | | |
United States Treasury Inflation Indexed Bonds
2.000% due 04/15/12 | | | 107 | | 112 |
1.375% due 07/15/18 | | | 1,106 | | 1,134 |
1.375% due 01/15/20 (Æ) | | | 3,924 | | 3,959 |
United States Treasury Notes
1.000% due 12/31/11 | | | 5,800 | | 5,819 |
0.875% due 02/29/12 | | | — | | — |
1.375% due 02/15/13 | | | 6,775 | | 6,770 |
1.375% due 03/15/13 | | | 1,400 | | 1,397 |
1.750% due 04/15/13 | | | 1,405 | | 1,416 |
2.500% due 03/31/15 | | | 4,070 | | 4,090 |
3.125% due 04/30/17 | | | 12,500 | | 12,508 |
3.625% due 02/15/20 | | | 7,950 | | 7,926 |
4.625% due 02/15/40 | | | 250 | | 254 |
| | | | | |
| | | | | 45,385 |
| | | | | |
| | |
Total Long-Term Investments
(cost $477,384) | | | | | 491,393 |
| | | | | |
| | |
| 206 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Preferred Stocks - 0.3% | | | | |
| Financial Services - 0.3% | | | | |
DG Funding Trust (Ê)(Å) | | 219 | | 1,781 |
Federal Home Loan Mortgage Corp. (Æ)(ƒ) | | 19,825 | | 31 |
Federal National Mortgage Association (Æ)(ƒ) | | 20,827 | | 28 |
Wells Fargo & Co. | | 300 | | 295 |
| | | | |
| | |
Total Preferred Stocks
(cost $3,489) | | | | 2,135 |
| | | | |
| | |
| Warrants & Rights - 0.0% | | | | |
World Color Press, Inc. (Æ)
2014 Warrants | | 87 | | 1 |
| | | | |
| | |
Total Warrants & Rights
(cost $—) | | | | 1 |
| | | | |
| | |
| Short-Term Investments - 9.4% | | | | |
Aetna, Inc.
7.875% due 03/01/11 | | 200 | | 211 |
American Express Centurion Bank Series BKNT
5.200% due 11/26/10 | | 500 | | 510 |
American Express Credit Corp.
0.429% due 12/02/10 (Ê) | | 500 | | 500 |
Series MTNB (Ê)
0.399% due 10/04/10 | | 500 | | 500 |
American General Finance Corp.
4.875% due 05/15/10 | | 200 | | 200 |
American International Group, Inc.
4.700% due 10/01/10 | | 1,950 | | 1,961 |
Bank of Scotland PLC (Ê)(Þ)
0.312% due 12/08/10 | | 600 | | 599 |
Capmark Financial Group, Inc. (Ø)
3.114% due 05/10/10 | | 410 | | 150 |
Citigroup, Inc. (Ê)
0.400% due 05/18/10 | | 1,900 | | 1,900 |
Comcast Cable Communications LLC
6.750% due 01/30/11 | | 400 | | 417 |
Countrywide Home Loans, Inc.
Series MTNL
4.000% due 03/22/11 | | 640 | | 656 |
Credit Agricole SA (Ê)(Þ)
0.302% due 05/28/10 | | 300 | | 300 |
Discover Financial Services (Ê)
Series WI
0.786% due 06/11/10 | | 1,060 | | 1,060 |
Fannie Mae
4.500% due 2010 | | 164 | | 165 |
6.000% due 2010 | | 3 | | 3 |
6.500% due 2010 | | 6 | | 6 |
6.250% due 2011 | | 900 | | 939 |
Fortune Brands, Inc.
5.125% due 01/15/11 | | 350 | | 360 |
Freddie Mac
4.000% due 08/01/10 | | 144 | | 145 |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
Freddie Mac Discount Notes (ç)(ž)
Zero Coupon
due 07/23/10 | | 12,000 | | 11,995 |
International Lease Finance Corp.
5.450% due 03/24/11 | | 80 | | 80 |
KeyBank NA (Ê)
Series BKNT
2.502% due 06/02/10 | | 300 | | 300 |
Keycorp (Ê)
0.860% due 11/22/10 | | 1,100 | | 1,399 |
Lehman Brothers Holdings, Inc.
2.951% due 05/25/10 (Ø) | | 800 | | 173 |
1.000% due 04/05/11 | | 10 | | 3 |
Marsh & McLennan Cos., Inc.
5.150% due 09/15/10 | | 840 | | 852 |
Merrill Lynch & Co., Inc.
Series MTNB
4.500% due 11/04/10 | | 295 | | 300 |
Morgan Stanley (Ê)
2.350% due 05/14/10 | | 400 | | 400 |
Morgan Stanley Dean Witter Capital I (Þ)
Series 2001-DFM Class A
5.996% due 03/14/11 | | 10 | | 10 |
National City Corp.
4.000% due 02/01/11 | | 200 | | 203 |
Nationwide Life Global Funding I (Ê)(Þ)
0.451% due 05/19/10 | | 1,800 | | 1,799 |
0.652% due 08/27/10 | | 1,570 | | 1,569 |
0.357% due 12/14/10 | | 780 | | 773 |
Nuveen Investments, Inc.
5.000% due 09/15/10 | | 900 | | 900 |
Pacific Gas & Electric Co.
4.200% due 03/01/11 | | 480 | | 493 |
Protective Life Secured Trusts (Ê)
0.411% due 11/09/10 | | 1,600 | | 1,596 |
Royal Bank of Scotland Group PLC
6.375% due 02/01/11 | | 800 | | 811 |
Royal Bank of Scotland PLC (The) (Ê)(Þ)
0.823% due 04/08/11 | | 1,500 | | 1,502 |
Russell U.S. Cash Management Fund | | 28,003,381 | | 28,003 |
Santander Holdings USA, Inc.
4.800% due 09/01/10 | | 160 | | 162 |
SLM Corp.
0.476% due 07/26/10 (Ê) | | 100 | | 100 |
Series MTNA
4.500% due 07/26/10 | | 1,075 | | 1,080 |
Textron Financial Corp. (Ê)
0.382% due 02/25/11 | | 1,350 | | 1,329 |
Union Planters Corp.
7.750% due 03/01/11 | | 1,060 | | 1,083 |
United States Treasury Bills (ç)(ž)
1.000% due 05/13/10 | | 1,800 | | 1,800 |
0.219% due 08/26/10 | | 202 | | 202 |
United Technologies Corp.
4.375% due 05/01/10 | | 425 | | 425 |
7.125% due 11/15/10 | | 270 | | 279 |
| | | | |
| | |
Total Short-Term Investments
(cost $70,922) | | | | 70,203 |
| | | | |
| | |
| Russell Short Duration Bond Fund | | 207 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Repurchase Agreements – 22.7% | | | | |
Agreement with Barclays and State Street Bank (Tri-Party) of $11,200 dated April 30, 2010, at 0.200% to be repurchased at $11,200 on May 3, 2010 collateralized by: $11,607 par various United States Treasury Obligations, valued at $11,665 | | 11,200 | | 11,200 |
Agreement with Barclays and State Street Bank (Tri-Party) of $42,400 dated April 30, 2010, at 0.200% to be repurchased at $42,200 on May 3, 2010 collateralized by: 42,977 par various United States Treasury Obligations, valued at $43,017 | | 42,200 | | 42,200 |
Agreement with BNP Paribas Securities Corp. and State Street Bank (Tri-Party) of $42,200 dated April 30, 2010, at 0.200% to be repurchased at $42,201 on May 3, 2010 collateralized by: $38,389 par various United States Treasury Obligations, valued at $43,065 | | 42,200 | | 42,200 |
Agreement with Deutsche Bank and State Street Bank (Tri-Party) of $31,900 dated April 30, 2010, at 0.200% to be repurchased at $31,901 on May 3, 2010 collateralized by: $34,415 par various United States Treasury Obligations, valued at $32,436 | | 31,900 | | 31,900 |
Agreement with JPMorgan Chase and State Street Bank (Tri-Party) of $42,400 dated April 30, 2010, at 0.200% to be repurchased at $42,401 on May 3, 2010 collateralized by: $42,952 par various United States Treasury Obligations, valued at $42,965 | | 42,200 | | 42,200 |
| | | | |
| | |
Total Repurchase Agreements
(cost $169,700) | | | | 169,700 |
| | | | |
| | |
Total Investments - 98.3%
(identified cost $721,495) | | | | 733,432 |
| | |
Other Assets and Liabilities,
Net - 1.7% | | | | 12,807 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 746,239 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 208 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except contracts)
| | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ |
| | | | | | | | | | |
| Long Positions | | | | | | | | | | |
Euro-Bobl Futures (Germany) | | 71 | | EUR | | 8,389 | | 06/10 | | 127 |
Eurodollar Futures (CME) | | 746 | | USD | | 185,623 | | 06/10 | | 226 |
Eurodollar Futures (CME) | | 142 | | USD | | 35,283 | | 09/10 | | 21 |
Eurodollar Futures (CME) | | 91 | | USD | | 22,562 | | 12/10 | | 61 |
Three Month Short Canadian Accept Futures | | 14 | | CAN | | 3,468 | | 06/10 | | (12) |
Three Month Short Canadian Accept Futures | | 29 | | CAN | | 7,147 | | 09/10 | | (37) |
Three Month Short Sterling Interest Rate Futures (UK) | | 24 | | GBP | | 2,977 | | 06/10 | | 9 |
Three Month Short Sterling Interest Rate Futures (UK) | | 17 | | GBP | | 2,106 | | 09/10 | | 1 |
Three Month Short Sterling Interest Rate Futures (UK) | | 19 | | GBP | | 2,348 | | 12/10 | | 3 |
United States Treasury 2 Year Notes | | 621 | | USD | | 135,116 | | 06/10 | | 327 |
United States Treasury 30 Year Bond | | 15 | | USD | | 1,786 | | 06/10 | | 48 |
| | | | | |
| Short Positions | | | | | | | | | | |
Eurodollar Futures (CME) | | 15 | | USD | | 3,732 | | 06/10 | | 4 |
Eurodollar Futures (CME) | | 15 | | USD | | 3,727 | | 09/10 | | 3 |
Eurodollar Futures (CME) | | 15 | | USD | | 3,719 | | 12/10 | | 1 |
Eurodollar Futures (CME) | | 15 | | USD | | 3,709 | | 03/11 | | (1) |
Eurodollar Futures (CME) | | 15 | | USD | | 3,697 | | 06/11 | | (4) |
Eurodollar Futures (CME) | | 15 | | USD | | 3,685 | | 09/11 | | (6) |
Eurodollar Futures (CME) | | 15 | | USD | | 3,674 | | 12/11 | | (7) |
Eurodollar Futures (CME) | | 15 | | USD | | 3,663 | | 03/12 | | (8) |
United States Treasury 2 Year Notes | | 91 | | USD | | 19,800 | | 06/10 | | (68) |
United States Treasury 5 Year Notes | | 84 | | USD | | 9,732 | | 06/10 | | (37) |
United States Treasury 10 Year Notes | | 202 | | USD | | 23,817 | | 06/10 | | (168) |
| | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | 483 |
| | | | | | | | | | |
| | | | | | | |
Options Written
(Number of Contracts) | | Notional
Amount | | Market
Value
$ | |
| | | | | | | |
| Cross Currency | | | | | | | |
Jul 2010 90.00 Put (2) | | USD | | 3,500 | | (11 | ) |
| | | |
| Swaptions | | | | | | | |
(Fund Receives/Fund Pays) USD Three Month LIBOR/USD 3.250%
Aug 2010 0.00 Call (3) | | | | 13,900 | | (50 | ) |
USD Three Month LIBOR/EUR 0.800%
Sep 2010 0.00 Call (1) | | | | 4,900 | | (16 | ) |
USD Three Month LIBOR/USD 3.250%
Oct 2010 0.00 Call (4) | | | | 15,100 | | (89 | ) |
USD Three Month LIBOR/USD 3.600%
May 2010 0.00 Call (1) | | | | 1,500 | | (6 | ) |
USD Three Month LIBOR/USD 3.500%
Jun 2010 0.00 Call (2) | | | | 10,400 | | (50 | ) |
USD 4.100%/ USD Three Month LIBOR
May 2010 0.00 Put (1) | | | | 1,500 | | (1 | ) |
| | | | | | | |
Options Written
(Number of Contracts) | | Notional
Amount | | Market
Value
$ | |
USD 4.500%/ USD Three Month LIBOR
Jun 2010 0.00 Put (1) | | USD | | 2,100 | | (1 | ) |
USD 4.750%/ USD Three Month LIBOR
Aug 2010 0.00 Put (3) | | | | 13,900 | | (30 | ) |
USD 5.500%/ USD Three Month LIBOR
Aug 2010 0.00 Put (2) | | | | 1,700 | | — | |
USD 6.000%/ USD Three Month LIBOR
Aug 2010 0.00 Put (6) | | | | 36,900 | | (1 | ) |
USD 1.400%/ USD Three Month LIBOR
Sep 2010 0.00 Put (1) | | | | 4,900 | | (25 | ) |
USD 4.000%/ USD Three Month LIBOR
Oct 2010 0.00 Put (1) | | | | 4,200 | | (13 | ) |
USD 5.000%/ USD Three Month LIBOR
Oct 2010 0.00 Put (4) | | | | 15,100 | | (50 | ) |
USD 4.000%/ USD Three Month LIBOR
Dec 2010 0.00 Put (2) | | | | 24,400 | | (108 | ) |
| | | | | | | |
| | | |
Total Liability for Options Written
(premiums received $939) | | | | | | (451 | ) |
| | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 209 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Bank of America | | USD | | 253 | | PHP | | 11,525 | | 06/18/10 | | 5 | |
Barclays Bank PLC | | USD | | 374 | | CNY | | 2,534 | | 06/07/10 | | (2 | ) |
Barclays Bank PLC | | USD | | 100 | | MYR | | 321 | | 06/14/10 | | 1 | |
Barclays Bank PLC | | USD | | 96 | | TWD | | 3,009 | | 06/10/10 | | — | |
Barclays Bank PLC | | AUD | | 295 | | USD | | 272 | | 05/20/10 | | (1 | ) |
Barclays Bank PLC | | EUR | | 265 | | USD | | 353 | | 05/20/10 | | — | |
BNP Paribas | | JPY | | 14,884 | | USD | | 158 | | 05/06/10 | | — | |
Citibank | | JPY | | 7,814 | | USD | | 83 | | 05/06/10 | | — | |
Credit Suisse First Boston | | USD | | 1,687 | | KRW | | 1,919,971 | | 07/28/10 | | 41 | |
Credit Suisse First Boston | | EUR | | 96 | | USD | | 130 | | 05/24/10 | | 3 | |
Credit Suisse First Boston | | EUR | | 3,251 | | USD | | 4,357 | | 07/26/10 | | 27 | |
Credit Suisse First Boston | | JPY | | 4,428 | | USD | | 47 | | 05/06/10 | | — | |
Credit Suisse First Boston | | JPY | | 7,437 | | USD | | 79 | | 05/06/10 | | — | |
Credit Suisse First Boston | | JPY | | 10,174 | | USD | | 108 | | 05/06/10 | | — | |
Credit Suisse First Boston | | JPY | | 14,886 | | USD | | 158 | | 05/06/10 | | — | |
Deutsche Bank | | USD | | 114 | | CAD | | 115 | | 05/04/10 | | (1 | ) |
Deutsche Bank | | USD | | 229 | | KRW | | 257,579 | | 07/28/10 | | 3 | |
Deutsche Bank | | USD | | 506 | | MXN | | 6,231 | | 07/07/10 | | (3 | ) |
Deutsche Bank | | USD | | 229 | | TWD | | 7,177 | | 06/10/10 | | 1 | |
Deutsche Bank | | SGD | | 638 | | USD | | 457 | | 05/03/10 | | (9 | ) |
Goldman Sachs | | EUR | | 2,180 | | USD | | 2,952 | | 05/24/10 | | 49 | |
Goldman Sachs | | JPY | | 112,755 | | USD | | 1,212 | | 05/17/10 | | 11 | |
HSBC | | USD | | 1,404 | | BRL | | 2,537 | | 06/02/10 | | 47 | |
HSBC | | EUR | | 16 | | USD | | 24 | | 05/03/10 | | 2 | |
HSBC | | EUR | | 850 | | USD | | 1,154 | | 05/20/10 | | 22 | |
JP Morgan | | USD | | 128 | | AUD | | 141 | | 05/28/10 | | 2 | |
JP Morgan | | USD | | 349 | | EUR | | 265 | | 05/20/10 | | 4 | |
JP Morgan | | USD | | 383 | | EUR | | 285 | | 05/20/10 | | (4 | ) |
JP Morgan | | USD | | 449 | | SGD | | 638 | | 05/03/10 | | 17 | |
JP Morgan | | AUD | | 275 | | USD | | 255 | | 05/20/10 | | 1 | |
JP Morgan | | EUR | | 250 | | USD | | 333 | | 05/20/10 | | — | |
Morgan Stanley | | JPY | | 14,981 | | USD | | 159 | | 05/06/10 | | — | |
Royal Bank of Scotland | | USD | | 271 | | AUD | | 295 | | 05/20/10 | | 1 | |
Royal Bank of Scotland | | USD | | 1,208 | | CAD | | 1,205 | | 05/20/10 | | (23 | ) |
Royal Bank of Scotland | | USD | | 10 | | JPY | | 927 | | 05/17/10 | | — | |
Royal Bank of Scotland | | GBP | | 1,442 | | USD | | 2,171 | | 06/24/10 | | (36 | ) |
Royal Bank of Scotland | | JPY | | 2,865 | | USD | | 31 | | 05/17/10 | | 1 | |
UBS | | USD | | 114 | | CAD | | 115 | | 07/07/10 | | (1 | ) |
UBS | | CAD | | 115 | | USD | | 114 | | 05/04/10 | | 1 | |
UBS | | JPY | | 14,885 | | USD | | 158 | | 05/06/10 | | — | |
| | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | 159 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 210 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Interest Rate Swap Contracts | | | | | | | | | | | | | |
Counter party | | Notional
Amount | | Fund Receives | | Fund Pays | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | |
Barclays Bank PLC | | BRL | | 6,900 | | 13.845% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 397 | |
Barclays Bank PLC | | BRL | | 2,000 | | 11.910% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (13 | ) |
Barclays Bank PLC | | USD | | 300 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 14 | |
BNP Paribas | | BRL | | 500 | | 11.390% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (6 | ) |
BNP Paribas | | BRL | | 500 | | 11.880% | | One Month LIBOR | | 01/02/13 | | (3 | ) |
BNP Paribas | | BRL | | 400 | | 12.110% | | One Month LIBOR | | 01/02/14 | | (2 | ) |
BNP Paribas | | EUR | | 1,200 | | Consumer Price Index (France) | | 2.090% | | 10/15/10 | | 53 | |
Citibank | | EUR | | 6,600 | | 3.000% | | Six Month EURIBOR | | 06/16/15 | | 258 | |
Citibank | | USD | | 200 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 9 | |
Goldman Sachs | | BRL | | 700 | | 10.990% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (2 | ) |
Goldman Sachs | | BRL | | 2,600 | | 11.890% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (15 | ) |
HSBC | | BRL | | 700 | | 11.360% | | Brazil Interbank Deposit Rate | | 01/02/12 | | — | |
HSBC | | BRL | | 1,200 | | 11.890% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (7 | ) |
HSBC | | BRL | | 200 | | 12.540% | | One Month LIBOR | | 01/02/14 | | 1 | |
JP Morgan | | BRL | | 2,400 | | 12.170% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (2 | ) |
JP Morgan | | BRL | | 700 | | 12.200% | | One Month LIBOR | | 01/02/14 | | (2 | ) |
Merrill Lynch | | BRL | | 100 | | 14.765% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 7 | |
Merrill Lynch | | BRL | | 900 | | 10.990% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (3 | ) |
Morgan Stanley | | USD | | 500 | | 4.000% | | Three Month LIBOR | | 06/16/15 | | 31 | |
Morgan Stanley | | USD | | 800 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 38 | |
Royal Bank of Scotland | | USD | | 100 | | 4.000% | | Three Month LIBOR | | 06/16/17 | | 5 | |
UBS | | AUD | | 1,600 | | 6.000% | | Six Month BBSW | | 09/15/12 | | 12 | |
UBS | | BRL | | 1,000 | | 10.575% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (27 | ) |
UBS | | BRL | | 100 | | 11.980% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 2 | |
UBS | | BRL | | 800 | | 12.540% | | Brazil Interbank Deposit Rate | | 01/02/12 | | 25 | |
UBS | | BRL | | 700 | | 11.420% | | Brazil Interbank Deposit Rate | | 01/02/12 | | (3 | ) |
UBS | | BRL | | 300 | | 12.070% | | Brazil Interbank Deposit Rate | | 01/02/13 | | (1 | ) |
UBS | | BRL | | 300 | | 12.250% | | One Month LIBOR | | 01/02/14 | | — | |
| | | | | | | | | | | | | |
| | | |
Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $104 | | | | | | 766 | |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 211 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | |
| Corporate Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | | | |
Ally Financial | | Deutsche Bank | | 2.968% | | USD | | 600 | | 5.000% | | | 06/20/11 | | 14 | |
Ally Financial | | Goldman Sachs | | 1.842% | | USD | | 700 | | 2.500% | | | 09/27/10 | | 2 | |
Barclays Bank PLC | | Barclays Bank PLC | | 2.803% | | USD | | 2,000 | | 6.150% | | | 09/20/12 | | 164 | |
Barclays Bank PLC | | Barclays Bank PLC | | 1.066% | | USD | | 700 | | 1.670% | | | 03/20/13 | | 13 | |
BNP Paribas | | BNP Paribas | | 3.565% | | USD | | 100 | | 5.050% | | | 03/20/13 | | 4 | |
BNP Paribas | | BNP Paribas | | 1.066% | | USD | | 1,200 | | 1.300% | | | 03/20/13 | | 10 | |
BNP Paribas | | BNP Paribas | | 1.066% | | USD | | 100 | | 1.250% | | | 03/20/13 | | 1 | |
Brazil Government International Bond | | Deutsche Bank | | 0.470% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 5 | |
Brazil Government International Bond | | Goldman Sachs | | 0.470% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
Brazil Government International Bond | | Goldman Sachs | | 0.470% | | USD | | 500 | | 1.000% | | | 12/20/10 | | 1 | |
Brazil Government International Bond | | JP Morgan | | 0.470% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
Citibank | | Citibank | | 1.132% | | USD | | 200 | | 4.325% | | | 12/20/13 | | 23 | |
Citibank | | Citibank | | 1.132% | | USD | | 200 | | 4.200% | | | 12/20/13 | | 22 | |
Deutsche Bank | | Deutsche Bank | | 0.118% | | USD | | 772 | | 0.708% | | | 12/20/12 | | 12 | |
Deutsche Bank | | Deutsche Bank | | 1.132% | | USD | | 100 | | 4.900% | | | 12/20/13 | | 14 | |
Deutsche Bank | | Deutsche Bank | | 1.132% | | USD | | 200 | | 4.230% | | | 12/20/13 | | 23 | |
Goldman Sachs | | Goldman Sachs | | 2.080% | | USD | | 300 | | 1.380% | | | 06/20/13 | | (6 | ) |
Illinois Municipal | | Goldman Sachs | | 1.640% | | USD | | 700 | | 2.100% | | | 03/20/12 | | 8 | |
Illinois Municipal | | Goldman Sachs | | 1.640% | | USD | | 300 | | 2.050% | | | 03/20/12 | | 3 | |
Indonesia Government International Bond | | Citibank | | 0.770% | | USD | | 540 | | 1.000% | | | 06/20/11 | | 2 | |
Indonesia Government International Bond | | HSBC | | 0.770% | | USD | | 180 | | 1.000% | | | 06/20/11 | | 1 | |
Indonesia Government International Bond | | Morgan Stanley | | 0.770% | | USD | | 540 | | 1.000% | | | 06/20/11 | | 2 | |
Indonesia Government International Bond | | Royal Bank of Scotland | | 0.770% | | USD | | 540 | | 1.000% | | | 06/20/11 | | 2 | |
Japan Government International Bond | | Bank of America | | 0.684% | | USD | | 300 | | 1.000% | | | 03/20/15 | | 4 | |
Japan Government International Bond | | Bank of America | | 0.684% | | USD | | 500 | | 1.000% | | | 03/20/15 | | 7 | |
Japan Government International Bond | | Bank of America | | 0.684% | | USD | | 1,100 | | 1.000% | | | 03/20/15 | | 16 | |
Japan Government International Bond | | Barclays Bank PLC | | 0.710% | | USD | | 800 | | 1.000% | | | 06/20/15 | | 12 | |
Japan Government International Bond | | Credit Suisse Financial Products | | 0.684% | | USD | | 1,400 | | 1.000% | | | 03/20/15 | | 20 | |
Japan Government International Bond | | Deutsche Bank | | 0.684% | | USD | | 100 | | 1.000% | | | 03/20/15 | | 1 | |
Japan Government International Bond | | Goldman Sachs | | 0.684% | | USD | | 1,200 | | 1.000% | | | 03/20/15 | | 17 | |
Japan Government International Bond | | JP Morgan | | 0.684% | | USD | | 600 | | 1.000% | | | 03/20/15 | | 8 | |
Mexico Government International Bond | | Deutsche Bank | | 0.500% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
Mexico Government International Bond | | Goldman Sachs | | 0.500% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
Mexico Government International Bond | | HSBC | | 0.500% | | USD | | 500 | | 1.000% | | | 12/20/10 | | 1 | |
Mexico Government International Bond | | JP Morgan | | 0.500% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
Morgan Stanley | | Morgan Stanley | | 1.440% | | USD | | 1,400 | | 0.860% | | | 11/20/11 | | (7 | ) |
Royal Bank of Scotland | | Royal Bank of Scotland | | 2.080% | | USD | | 200 | | (1.360% | ) | | 06/20/13 | | (4 | ) |
Russia Government International Bond | | Goldman Sachs | | 0.470% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
Russia Government International Bond | | Goldman Sachs | | 0.470% | | USD | | 500 | | 1.000% | | | 12/20/10 | | 1 | |
Russia Government International Bond | | UBS | | 0.470% | | USD | | 1,000 | | 1.000% | | | 12/20/10 | | 2 | |
South Korea Government International Bond | | Citibank | | 0.375% | | USD | | 1,000 | | 0.520% | | | 12/20/10 | | 2 | |
South Korea Government International Bond | | UBS | | 0.375% | | USD | | 1,000 | | 0.550% | | | 12/20/10 | | 2 | |
United Kingdom Gilt | | BNP Paribas | | 0.748% | | USD | | 400 | | 1.000% | | | 03/20/15 | | 4 | |
United Kingdom Gilt | | Citibank | | 0.748% | | USD | | 500 | | 1.000% | | | 03/20/15 | | 6 | |
United Kingdom Gilt | | Goldman Sachs | | 0.748% | | USD | | 900 | | 1.000% | | | 03/20/15 | | 10 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 400 | | 1.000% | | | 03/20/15 | | 5 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 300 | | 1.000% | | | 03/20/15 | | 3 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 700 | | 1.000% | | | 03/20/15 | | 8 | |
United Kingdom Gilt | | JP Morgan | | 0.748% | | USD | | 500 | | 1.000% | | | 03/20/15 | | 6 | |
| | | | | | | | | | | | | | | | |
| | |
Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - $121 | | | | | 456 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Credit Indices |
Reference
Entity | | Counterparty | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | Termination
Date | | Market
Value
$ |
| | | | | | | | | | | | |
Dow Jones CDX Index | | Barclays Bank PLC | | USD | | 200 | | 5.000% | | 06/20/15 | | 27 |
Dow Jones CDX Index | | Barclays Bank PLC | | USD | | 1,000 | | 5.000% | | 06/20/15 | | 132 |
Dow Jones CDX Index | | Dow Jones CDX Index | | USD | | 96 | | 0.553% | | 12/20/17 | | 1 |
Dow Jones CDX Index | | Dow Jones CDX Index | | USD | | 96 | | 0.548% | | 12/20/17 | | 1 |
| | | | | | | | | | | | |
| | |
Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - $149 | | | | 161 |
| | | | | | | | | | | | |
| | |
Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - $270 | | | | 617 |
| | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 212 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | Total | | |
| | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 68,813 | | | $ | 475 | | $ | 69,288 | | | 9.3 | |
Corporate Bonds and Notes | | | — | | | | 133,353 | | | | — | | | 133,353 | | | 17.9 | |
International Debt | | | 36,017 | | | | 820 | | | | — | | | 36,837 | | | 4.9 | |
Loan Agreements | | | — | | | | 883 | | | | — | | | 883 | | | 0.1 | |
Mortgage-Backed Securities | | | — | | | | 176,088 | | | | — | | | 176,088 | | | 23.6 | |
Municipal Bonds | | | — | | | | 4,343 | | | | — | | | 4,343 | | | 0.6 | |
Non-US Bonds | | | — | | | | 9,539 | | | | — | | | 9,539 | | | 1.3 | |
United States Government Agencies | | | — | | | | 15,677 | | | | — | | | 15,677 | | | 2.1 | |
United States Government Treasuries | | | — | | | | 45,385 | | | | — | | | 45,385 | | | 6.1 | |
Preferred Stocks | | | 354 | | | | — | | | | 1,781 | | | 2,135 | | | 0.3 | |
Warrants & Rights | | | 1 | | | | — | | | | — | | | 1 | | | — | * |
Short-Term Investments | | | — | | | | 70,203 | | | | — | | | 70,203 | | | 9.4 | |
Repurchase Agreements | | | — | | | | 169,700 | | | | — | | | 169,700 | | | 22.7 | |
| | | | | | | | | | | | | | | | | | |
Total Investments | | | 36,372 | | | | 694,804 | | | | 2,256 | | | 733,432 | | | 98.3 | |
| | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | 1.7 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 483 | | | | — | | | | — | | | 483 | | | 0.1 | |
Options Written | | | (11 | ) | | | (440 | ) | | | — | | | (451 | ) | | (0.1 | ) |
Foreign Currency Exchange Contracts | | | — | | | | 159 | | | | — | | | 159 | | | — | * |
Interest Rate Swap Contracts | | | — | | | | 662 | | | | — | | | 662 | | | 0.1 | |
Credit Default Swaps | | | — | | | | 347 | | | | — | | | 347 | | | — | * |
| | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | 472 | | | | 728 | | | | — | | | 1,200 | | | | |
| | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 213 |
Russell Investment Company
Russell Short Duration Bond Fund
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
The fair value of the Fund’s derivative instruments categorized by risk exposure are as follows:
| | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | Foreign
Currency
Contracts | | Interest Rate
Contracts |
| | | | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | | $ | 239 | | $ | — |
Daily variation margin on futures contracts* | | | — | | | — | | | 831 |
Interest rate swap contracts, at market value | | | — | | | — | | | 852 |
Credit default swap contracts, at market value | | | 634 | | | — | | | — |
| | | | | | | | | |
Total | | $ | 634 | | $ | 239 | | $ | 1,683 |
| | | | | | | | | |
| | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | $ | 80 | | $ | — |
Daily variation margin on futures contracts* | | | — | | | — | | | 348 |
Interest rate swap contracts, at market value | | | — | | | — | | | 86 |
Credit default swap contracts, at market value | | | 17 | | | — | | | — |
Options written, at market value | | | — | | | — | | | 451 |
| | | | | | | | | |
Total | | $ | 17 | | $ | 80 | | $ | 885 |
| | | | | | | | | |
The effect of the Fund’s derivative instruments on the Statement of Operations are as follows:
| | | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | Foreign
Currency
Contracts | | Interest Rate
Contracts | |
| | | | | | | | | | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | | | |
Futures contracts | | $ | — | | $ | — | | $ | 1,701 | |
Options Written | | | — | | | — | | | 297 | |
Credit default swap contracts | | | 293 | | | — | | | — | |
Interest rate swap contracts | | | — | | | — | | | 2,346 | |
Foreign currency-related transactions | | | — | | | 951 | | | — | |
| | | | | | | | | | |
Total | | $ | 293 | | $ | 951 | | $ | 4,344 | |
| | | | | | | | | | |
| | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | |
Futures contracts | | $ | — | | $ | — | | $ | (373 | ) |
Options Written | | | — | | | — | | | 381 | |
Credit default swap contracts | | | 320 | | | — | | | — | |
Interest rate swap contracts | | | — | | | — | | | (1,503 | ) |
Foreign currency-related transactions | | | — | | | 283 | | | — | |
| | | | | | | | | | |
Total | | $ | 320 | | $ | 283 | | $ | (1,495 | ) |
| | | | | | | | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities. |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 214 | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,025.20 | | $ | 1,017.36 |
Expenses Paid During Period* | | $ | 7.53 | | $ | 7.50 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.50% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,029.30 | | $ | 1,021.03 |
Expenses Paid During Period* | | $ | 3.82 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,030.10 | | $ | 1,022.27 |
Expenses Paid During Period* | | $ | 2.57 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Russell Tax Exempt Bond Fund | | 215 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
| Municipal Bonds - 95.9% | | | | | | | | |
| Alabama - 1.0% | | | | | | | | |
Alabama Public School & College Authority Revenue Bonds | | 1,000 | | 5.000 | | 05/01/14 | | 1,133 |
Alabama Public School & College Authority Revenue Bonds | | 1,000 | | 5.000 | | 05/01/15 | | 1,127 |
Birmingham Water Works Board Revenue Bonds (µ) | | 1,275 | | 5.000 | | 01/01/17 | | 1,395 |
Courtland Industrial Development Board Revenue Bonds | | 250 | | 5.000 | | 11/01/13 | | 266 |
Mobile Industrial Development Board Revenue Bonds (Ê) | | 1,400 | | 4.875 | | 06/01/34 | | 1,511 |
| | | | | | | | |
| | | | | | | | 5,432 |
| | | | | | | | |
| | | | |
| Alaska - 0.2% | | | | | | | | |
City of Anchorage Alaska General Obligation Unlimited (µ)(æ) | | 500 | | 5.750 | | 12/01/16 | | 516 |
Northern TOB Securitization Corp. Revenue Bonds | | 755 | | 4.625 | | 06/01/23 | | 744 |
| | | | | | | | |
| | | | | | | | 1,260 |
| | | | | | | | |
| | | | |
| Arizona - 1.7% | | | | | | | | |
Arizona Health Facilities Authority Revenue Bonds | | 2,000 | | 5.250 | | 01/01/18 | | 2,181 |
Arizona Health Facilities Authority Revenue Bonds | | 2,000 | | 5.250 | | 01/01/22 | | 2,091 |
Arizona Transportation Board Revenue Bonds | | 500 | | 5.250 | | 07/01/12 | | 525 |
Arizona Transportation Board Revenue Bonds | | 1,500 | | 5.000 | | 07/01/14 | | 1,710 |
City of Phoenix Arizona General Obligation Unlimited | | 2,000 | | 5.000 | | 07/01/15 | | 2,308 |
| | | | | | | | |
| | | | | | | | 8,815 |
| | | | | | | | |
| | | | |
| California - 8.9% | | | | | | | | |
Abag Finance Authority for Nonprofit Corps. Certificate Of Participation | | 600 | | 5.700 | | 08/15/14 | | 602 |
California Health Facilities Financing Authority Revenue Bonds | | 1,550 | | 5.000 | | 07/01/16 | | 1,681 |
California Municipal Finance Authority Revenue Bonds | | 625 | | 5.250 | | 02/01/24 | | 583 |
California State Department of Water Resources Revenue Bonds (µ) | | 1,000 | | 5.250 | | 05/01/12 | | 1,087 |
California State Department of Water Resources Revenue Bonds | | 1,000 | | 5.000 | | 12/01/21 | | 1,130 |
California Statewide Communities Development Authority Revenue Bonds | | 2,250 | | 5.000 | | 06/15/13 | | 2,447 |
California Statewide Communities Development Authority Revenue Bonds | | 1,000 | | 5.000 | | 04/01/14 | | 1,100 |
California Statewide Communities Development Authority Revenue Bonds | | 2,260 | | 5.000 | | 04/01/19 | | 2,472 |
California Statewide Communities Development Authority Revenue Bonds | | 1,405 | | 6.000 | | 05/15/23 | | 1,523 |
California Statewide Communities Development Authority Revenue Bonds (Ê)(µ) | | 610 | | 4.100 | | 04/01/28 | | 638 |
City of Vernon California Revenue Bonds | | 2,000 | | 5.125 | | 08/01/21 | | 2,115 |
County of Sacramento California Revenue Bonds | | 2,000 | | 5.000 | | 07/01/22 | | 2,145 |
County of Sacramento California Revenue Bonds | | 895 | | 5.500 | | 07/01/28 | | 931 |
County of Sacramento California Revenue Bonds | | 750 | | 5.625 | | 07/01/29 | | 785 |
Golden State Tobacco Securitization Corp. Revenue Bonds (µ) | | 500 | | 5.000 | | 06/01/20 | | 493 |
Golden State Tobacco Securitization Corp. Revenue Bonds (µ) | | 750 | | 4.600 | | 06/01/23 | | 668 |
Golden State Tobacco Securitization Corp. Revenue Bonds | | 1,085 | | 4.500 | | 06/01/27 | | 997 |
Golden State Tobacco Securitization Corp. Revenue Bonds | | 1,380 | | 5.750 | | 06/01/47 | | 1,062 |
Kings River Conservation District Certificate Of Participation | | 850 | | 5.000 | | 05/01/15 | | 959 |
Los Angeles Harbor Department Revenue Bonds | | 2,000 | | 5.250 | | 08/01/22 | | 2,224 |
Los Angeles Unified School District General Obligation Unlimited (µ) | | 1,150 | | 5.000 | | 07/01/21 | | 1,226 |
M-S-R Energy Authority Revenue Bonds | | 1,410 | | 6.125 | | 11/01/29 | | 1,495 |
San Diego Public Facilities Financing Authority Revenue Bonds | | 240 | | 5.000 | | 05/15/21 | | 267 |
Southern California Public Power Authority Revenue Bonds (µ) | | 405 | | 5.375 | | 01/01/12 | | 434 |
State of California General Obligation Unlimited | | 1,000 | | 5.000 | | 02/01/12 | | 1,064 |
State of California General Obligation Unlimited | | 1,000 | | 5.250 | | 07/01/12 | | 1,088 |
State of California General Obligation Unlimited (µ) | | 1,000 | | 6.000 | | 02/01/17 | | 1,162 |
State of California General Obligation Unlimited | | 1,000 | | 5.000 | | 10/01/17 | | 1,103 |
State of California General Obligation Unlimited | | 1,250 | | 5.000 | | 07/01/20 | | 1,385 |
State of California General Obligation Unlimited | | 2,500 | | 5.500 | | 04/01/21 | | 2,755 |
State of California General Obligation Unlimited | | 1,000 | | 5.250 | | 07/01/21 | | 1,114 |
State of California General Obligation Unlimited | | 1,000 | | 5.250 | | 03/01/22 | | 1,079 |
State of California General Obligation Unlimited (Ê)(µ) | | 1,300 | | 0.240 | | 07/01/23 | | 1,300 |
| | |
| 216 | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
State of California General Obligation Unlimited | | 2,000 | | 6.500 | | 04/01/33 | | 2,246 |
Tobacco Securitization Authority of Southern California Revenue Bonds | | 820 | | 4.750 | | 06/01/25 | | 796 |
Tuolumne Wind Project Authority Revenue Bonds | | 1,500 | | 5.000 | | 01/01/18 | | 1,649 |
University of California Revenue Bonds | | 500 | | 4.000 | | 05/15/14 | | 546 |
Westpark Community Facilities District No. 1 Special Tax | | 600 | | 5.250 | | 09/01/37 | | 471 |
| | | | | | | | |
| | | | | | | | 46,822 |
| | | | | | | | |
| | | | |
| Colorado - 0.2% | | | | | | | | |
Colorado Health Facilities Authority Revenue Bonds | | 1,000 | | 5.250 | | 06/01/23 | | 1,011 |
Colorado Housing & Finance Authority Revenue Bonds | | 20 | | 6.300 | | 08/01/12 | | 20 |
Colorado Housing & Finance Authority Revenue Bonds | | 25 | | 6.300 | | 08/01/16 | | 26 |
Colorado Housing & Finance Authority Revenue Bonds | | 10 | | 6.700 | | 10/01/16 | | 10 |
| | | | | | | | |
| | | | | | | | 1,067 |
| | | | | | | | |
| | | | |
| Connecticut - 0.7% | | | | | | | | |
Connecticut State Health & Educational Facility Authority Revenue Bonds | | 2,500 | | 5.000 | | 07/01/25 | | 2,779 |
State of Connecticut General Obligation Unlimited | | 790 | | 5.000 | | 01/01/16 | | 904 |
| | | | | | | | |
| | | | | | | | 3,683 |
| | | | | | | | |
| | | | |
| Delaware - 0.3% | | | | | | | | |
Delaware State Economic Development Authority Revenue Bonds (Ê)(µ) | | 250 | | 4.900 | | 05/01/26 | | 251 |
State of Delaware General Obligation Unlimited | | 1,000 | | 5.000 | | 01/01/17 | | 1,159 |
| | | | | | | | |
| | | | | | | | 1,410 |
| | | | | | | | |
| | | | |
| District of Columbia - 0.2% | | | | | | | | |
District of Columbia Revenue Bonds (µ) | | 1,000 | | 5.000 | | 02/01/12 | | 1,037 |
| | | | | | | | |
| | | | |
| Florida - 6.5% | | | | | | | | |
Citizens Property Insurance Corp. Revenue Bonds (µ) | | 1,000 | | 5.000 | | 03/01/15 | | 1,055 |
Citizens Property Insurance Corp. Revenue Bonds | | 2,600 | | 5.000 | | 06/01/15 | | 2,748 |
City of Gulf Breeze Florida Revenue Bonds (µ) | | 1,825 | | 5.000 | | 12/01/15 | | 1,874 |
City of Pembroke Pines Florida Revenue Bonds (µ) | | 1,000 | | 5.000 | | 10/01/16 | | 1,091 |
City of Tallahassee Florida Revenue Bonds (µ) | | 500 | | 5.000 | | 10/01/11 | | 527 |
County of Hillsborough Florida Revenue Bonds (µ) | | 1,000 | | 5.500 | | 08/01/12 | | 1,090 |
County of Miami-Dade Florida Revenue Bonds (µ) | | 1,000 | | 5.000 | | 06/01/14 | | 1,071 |
County of Miami-Dade Florida Revenue Bonds (µ) | | 1,500 | | 5.250 | | 10/01/19 | | 1,697 |
Escambia County Health Facilities Authority Revenue Bonds | | 1,000 | | 5.250 | | 11/15/11 | | 1,067 |
Escambia County Health Facilities Authority Revenue Bonds | | 1,000 | | 5.250 | | 11/15/13 | | 1,123 |
Florida Department of Children & Family Services Certificate Of Participation (µ) | | 1,175 | | 5.000 | | 10/01/15 | | 1,307 |
Florida Hurricane Catastrophe Fund Finance Corp. Revenue Bonds | | 1,600 | | 5.000 | | 07/01/10 | | 1,612 |
Florida State Board of Education General Obligation Unlimited | | 1,000 | | 5.000 | | 06/01/16 | | 1,142 |
Florida State Board of Education Revenue Bonds (µ) | | 1,000 | | 5.250 | | 01/01/13 | | 1,097 |
Florida State Board of Education Revenue Bonds | | 1,300 | | 5.000 | | 07/01/16 | | 1,473 |
Florida State Department of Transportation Revenue Bonds (µ) | | 2,000 | | 5.000 | | 07/01/13 | | 2,228 |
Florida Water Pollution Control Financing Corp. Revenue Bonds | | 500 | | 5.500 | | 01/15/12 | | 527 |
Florida Water Pollution Control Financing Corp. Revenue Bonds | | 2,000 | | 5.000 | | 01/15/25 | | 2,175 |
Hillsborough County Aviation Authority Revenue Bonds | | 1,000 | | 5.000 | | 10/01/14 | | 1,108 |
Hillsborough County Educational Facilities Authority Revenue Bonds (µ) | | 605 | | 5.750 | | 04/01/18 | | 605 |
Kissimmee Utility Authority Revenue Bonds (µ) | | 1,000 | | 5.000 | | 10/01/17 | | 1,105 |
Miami-Dade County Educational Facilities Authority Revenue Bonds (µ)(æ) | | 1,750 | | 5.000 | | 04/01/34 | | 1,974 |
Orlando Utilities Commission Revenue Bonds | | 370 | | 5.250 | | 10/01/20 | | 391 |
Palm Beach County School District Certificate Of Participation (µ) | | 1,000 | | 5.000 | | 08/01/14 | | 1,102 |
State of Florida Revenue Bonds (µ) | | 1,600 | | 5.250 | | 07/01/13 | | 1,610 |
Tampa-Hillsborough County Expressway Authority Revenue Bonds (µ) | | 1,000 | | 5.000 | | 07/01/14 | | 1,089 |
| | | | | | | | |
| | | | | | | | 33,888 |
| | | | | | | | |
| | |
| Russell Tax Exempt Bond Fund | | 217 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
| Georgia - 5.1% | | | | | | | | |
City of Atlanta Georgia Revenue Bonds | | 1,000 | | 6.000 | | 11/01/20 | | 1,124 |
City of Atlanta Georgia Revenue Bonds (µ) | | 2,000 | | 5.500 | | 11/01/23 | | 2,202 |
City of Atlanta Georgia Revenue Bonds | | 1,300 | | 6.000 | | 11/01/25 | | 1,411 |
Clayton County Development Authority Revenue Bonds | | 1,560 | | 8.750 | | 06/01/29 | | 1,666 |
County of Columbia Georgia General Obligation Unlimited | | 1,730 | | 4.000 | | 04/01/13 | | 1,869 |
Gwinnett County School District General Obligation Unlimited | | 2,220 | | 5.000 | | 02/01/21 | | 2,607 |
Hall County School District General Obligation Unlimited | | 1,000 | | 5.000 | | 11/01/12 | | 1,098 |
Main Street Natural Gas, Inc. Revenue Bonds | | 825 | | 5.000 | | 03/15/16 | | 876 |
Marietta Development Authority Revenue Bonds | | 575 | | 6.250 | | 06/15/20 | | 552 |
Municipal Electric Authority of Georgia Revenue Bonds (µ) | | 850 | | 6.250 | | 01/01/17 | | 993 |
State of Georgia General Obligation Unlimited | | 2,000 | | 5.000 | | 07/01/12 | | 2,182 |
State of Georgia General Obligation Unlimited | | 1,550 | | 5.000 | | 08/01/12 | | 1,696 |
State of Georgia General Obligation Unlimited | | 2,800 | | 5.000 | | 07/01/13 | | 3,141 |
State of Georgia General Obligation Unlimited | | 2,100 | | 5.500 | | 07/01/13 | | 2,388 |
State of Georgia General Obligation Unlimited | | 1,240 | | 5.000 | | 07/01/17 | | 1,445 |
State of Georgia General Obligation Unlimited | | 1,500 | | 5.000 | | 07/01/22 | | 1,699 |
| | | | | | | | |
| | | | | | | | 26,949 |
| | | | | | | | |
| | | | |
| Guam - 0.3% | | | | | | | | |
Territory of Guam Revenue Bonds | | 500 | | 5.375 | | 12/01/24 | | 527 |
Territory of Guam Revenue Bonds | | 805 | | 5.625 | | 12/01/29 | | 841 |
| | | | | | | | |
| | | | | | | | 1,368 |
| | | | | | | | |
| | | | |
| Hawaii - 0.7% | | | | | | | | |
City & County of Honolulu Hawaii Revenue Bonds (µ) | | 1,500 | | 5.000 | | 07/01/19 | | 1,682 |
County of Kauai Hawaii General Obligation Unlimited (µ)(æ) | | 375 | | 6.250 | | 08/01/19 | | 380 |
Hawaii Housing & Community Development Corp. Revenue Bonds | | 265 | | 3.700 | | 01/01/22 | | 268 |
State of Hawaii General Obligation Unlimited | | 1,000 | | 5.000 | | 02/01/15 | | 1,140 |
| | | | | | | | |
| | | | | | | | 3,470 |
| | | | | | | | |
| | | | |
| Idaho - 0.5% | | | | | | | | |
Boise State University Revenue Bonds (µ)(æ) | | 1,230 | | 5.375 | | 04/01/22 | | 1,339 |
Boise State University Revenue Bonds (µ) | | 15 | | 5.375 | | 04/01/22 | | 16 |
Idaho Housing & Finance Association Revenue Bonds (µ) | | 1,330 | | 5.250 | | 07/15/21 | | 1,478 |
| | | | | | | | |
| | | | | | | | 2,833 |
| | | | | | | | |
| | | | |
| Illinois - 2.2% | | | | | | | | |
City of Chicago Illinois General Obligation Unlimited (µ) | | 750 | | 6.000 | | 01/01/11 | | 760 |
City of Chicago Illinois General Obligation Unlimited (µ) | | 2,135 | | 5.000 | | 12/01/23 | | 2,280 |
City of Chicago Illinois General Obligation Unlimited (µ)(æ) | | 1,000 | | 5.000 | | 01/01/34 | | 1,128 |
Cook County Community Consolidated School District No. 15 Palatine General Obligation Limited (µ) | | 2,235 | | | | 12/01/13 | | 2,043 |
Illinois Finance Authority Revenue Bonds | | 105 | | 6.000 | | 05/15/10 | | 105 |
Illinois Finance Authority Revenue Bonds | | 670 | | 5.500 | | 10/01/12 | | 719 |
Lake County Community Unit School District No. 116 Round Lake General Obligation Unlimited (µ) | | 400 | | 7.600 | | 02/01/14 | | 491 |
State of Illinois General Obligation Unlimited | | 2,500 | | 5.000 | | 01/01/18 | | 2,713 |
State of Illinois Revenue Bonds (µ) | | 1,000 | | 5.000 | | 06/15/16 | | 1,139 |
| | | | | | | | |
| | | | | | | | 11,378 |
| | | | | | | | |
| | | | |
| Indiana - 2.0% | | | | | | | | |
Ball State University Revenue Bonds (µ) | | 1,000 | | 5.000 | | 07/01/16 | | 1,129 |
City of Indianapolis Indiana Revenue Bonds (µ) | | 1,000 | | 5.000 | | 08/15/23 | | 1,061 |
Indiana Bond Bank Revenue Bonds (µ) | | 140 | | 5.750 | | 08/01/13 | | 141 |
Indiana Finance Authority Revenue Bonds | | 1,000 | | 5.500 | | 11/15/10 | | 1,026 |
| | |
| 218 | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
Indiana Finance Authority Revenue Bonds (µ) | | 925 | | 5.000 | | 07/01/11 | | 962 |
Indiana Finance Authority Revenue Bonds | | 1,000 | | 4.900 | | 01/01/16 | | 1,063 |
Indiana Finance Authority Revenue Bonds | | 1,500 | | 5.250 | | 02/01/18 | | 1,759 |
Indiana Finance Authority Revenue Bonds | | 1,000 | | 5.000 | | 02/01/19 | | 1,157 |
Indiana Finance Authority Revenue Bonds (Ê) | | 1,000 | | 5.000 | | 11/01/27 | | 1,061 |
Indianapolis Local Public Improvement Bond Bank Revenue Bonds | | 1,000 | | 5.000 | | 02/01/18 | | 1,148 |
| | | | | | | | |
| | | | | | | | 10,507 |
| | | | | | | | |
| | | | |
| Iowa - 0.8% | | | | | | | | |
Iowa Finance Authority Revenue Bonds | | 290 | | 6.000 | | 07/01/10 | | 292 |
Iowa Finance Authority Revenue Bonds (µ) | | 1,000 | | 5.000 | | 07/01/14 | | 1,099 |
Iowa Higher Education Loan Authority Revenue Bonds | | 1,625 | | 5.000 | | 12/01/18 | | 1,878 |
Iowa Tobacco Settlement Authority Revenue Bonds (æ) | | 1,000 | | 5.600 | | 06/01/35 | | 1,063 |
| | | | | | | | |
| | | | | | | | 4,332 |
| | | | | | | | |
| | | | |
| Kansas - 0.2% | | | | | | | | |
Kansas Development Finance Authority Revenue Bonds (µ) | | 150 | | 5.000 | | 08/01/10 | | 151 |
Wyandotte County-Kansas City Unified Government Revenue Bonds | | 155 | | 4.750 | | 12/01/16 | | 157 |
Wyandotte County-Kansas City Unified Government Revenue Bonds | | 715 | | 4.875 | | 10/01/28 | | 511 |
| | | | | | | | |
| | | | | | | | 819 |
| | | | | | | | |
| | | | |
| Louisiana - 0.5% | | | | | | | | |
Louisiana Public Facilities Authority Revenue Bonds | | 1,000 | | 5.000 | | 07/01/19 | | 1,039 |
Louisiana State Citizens Property Insurance Corp. Revenue Bonds (µ) | | 1,600 | | 6.750 | | 06/01/26 | | 1,825 |
| | | | | | | | |
| | | | | | | | 2,864 |
| | | | | | | | |
| | | | |
| Maryland - 3.9% | | | | | | | | |
County of Prince George’s Maryland General Obligation Limited | | 1,000 | | 5.000 | | 07/15/16 | | 1,157 |
Maryland Economic Development Corp. Revenue Bonds | | 1,250 | | 5.125 | | 06/01/20 | | 1,253 |
Maryland Economic Development Corp. Revenue Bonds | | 885 | | 6.200 | | 09/01/22 | | 1,019 |
Maryland Economic Development Corp. Revenue Bonds | | 1,120 | | 5.375 | | 06/01/25 | | 1,136 |
Maryland Health & Higher Educational Facilities Authority Revenue Bonds | | 1,000 | | 5.400 | | 01/01/31 | | 888 |
Maryland Health & Higher Educational Facilities Authority Revenue Bonds (Ê) | | 465 | | 5.000 | | 05/15/48 | | 512 |
Maryland State Department of Transportation Revenue Bonds | | 1,100 | | 5.000 | | 05/01/17 | | 1,200 |
Maryland State Transportation Authority Revenue Bonds | | 1,000 | | 5.000 | | 03/01/16 | | 1,147 |
State of Maryland General Obligation Unlimited | | 2,000 | | 5.000 | | 02/01/12 | | 2,151 |
State of Maryland General Obligation Unlimited | | 2,500 | | 5.250 | | 03/01/13 | | 2,792 |
State of Maryland General Obligation Unlimited | | 2,500 | | 5.000 | | 07/15/14 | | 2,862 |
State of Maryland General Obligation Unlimited | | 1,500 | | 5.000 | | 08/01/14 | | 1,718 |
State of Maryland General Obligation Unlimited | | 1,000 | | 5.000 | | 03/15/17 | | 1,162 |
State of Maryland General Obligation Unlimited | | 1,150 | | 5.000 | | 11/01/17 | | 1,344 |
| | | | | | | | |
| | | | | | | | 20,341 |
| | | | | | | | |
| | | | |
| Massachusetts - 1.8% | | | | | | | | |
Commonwealth of Massachusetts General Obligation Limited | | 930 | | 5.500 | | 11/01/15 | | 1,091 |
Commonwealth of Massachusetts General Obligation Unlimited | | 1,500 | | 5.250 | | 08/01/13 | | 1,684 |
Commonwealth of Massachusetts General Obligation Unlimited | | 1,000 | | 5.500 | | 10/01/16 | | 1,177 |
Massachusetts Development Finance Agency Revenue Bonds | | 55 | | 5.125 | | 12/01/11 | | 57 |
Massachusetts Development Finance Agency Revenue Bonds | | 50 | | 5.150 | | 10/01/14 | | 55 |
Massachusetts Health & Educational Facilities Authority Revenue Bonds | | 995 | | 5.375 | | 07/01/21 | | 1,027 |
Massachusetts Health & Educational Facilities Authority Revenue Bonds (Ê) | | 1,050 | | 4.125 | | 10/01/37 | | 1,096 |
Massachusetts Port Authority Revenue Bonds | | 150 | | 5.750 | | 07/01/10 | | 151 |
Massachusetts State Water Pollution Abatement Revenue Bonds | | 1,090 | | 5.000 | | 08/01/16 | | 1,262 |
Massachusetts Water Resources Authority Revenue Bonds | | 1,525 | | 5.000 | | 08/01/14 | | 1,738 |
| | | | | | | | |
| | | | | | | | 9,338 |
| | | | | | | | |
| | |
| Russell Tax Exempt Bond Fund | | 219 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
| Michigan - 1.4% | | | | | | | | |
City of Detroit Michigan Revenue Bonds (µ) | | 1,000 | | 5.000 | | 07/01/14 | | 1,079 |
City of Detroit Michigan Revenue Bonds (µ) | | 1,015 | | 5.000 | | 07/01/18 | | 1,067 |
Kent Hospital Finance Authority Revenue Bonds (Ê) | | 500 | | 5.250 | | 01/15/47 | | 547 |
Michigan Municipal Bond Authority Revenue Bonds | | 1,000 | | 5.250 | | 10/01/11 | | 1,062 |
Michigan State Hospital Finance Authority Revenue Bonds | | 1,000 | | 5.500 | | 11/01/14 | | 1,059 |
Michigan State Housing Development Authority Revenue Bonds (µ) | | 260 | | 4.150 | | 10/01/13 | | 268 |
Michigan Strategic Fund Revenue Bonds | | 2,000 | | 6.250 | | 06/01/14 | | 2,234 |
| | | | | | | | |
| | | | | | | | 7,316 |
| | | | | | | | |
| | | | |
| Minnesota - 2.7% | | | | | | | | |
City of Minneapolis Minnesota Revenue Bonds | | 1,855 | | 6.375 | | 11/15/23 | | 2,126 |
City of State Louis Park Minnesota Revenue Bonds | | 1,165 | | 5.500 | | 07/01/17 | | 1,293 |
City of State Louis Park Minnesota Revenue Bonds | | 725 | | 5.500 | | 07/01/18 | | 798 |
Minnesota Municipal Power Agency Revenue Bonds | | 2,220 | | 5.250 | | 10/01/21 | | 2,387 |
State of Minnesota General Obligation Unlimited | | 545 | | 5.000 | | 06/01/14 | | 621 |
State of Minnesota General Obligation Unlimited | | 1,000 | | 5.000 | | 08/01/15 | | 1,155 |
State of Minnesota General Obligation Unlimited | | 2,990 | | 5.000 | | 06/01/17 | | 3,467 |
State of Minnesota General Obligation Unlimited | | 1,925 | | 4.000 | | 08/01/18 | | 2,103 |
| | | | | | | | |
| | | | | | | | 13,950 |
| | | | | | | | |
| | | | |
| Mississippi - 0.2% | | | | | | | | |
Mississippi Development Bank Special Obligation Revenue Bonds (µ) | | 1,000 | | 5.000 | | 07/01/15 | | 1,114 |
| | | | | | | | |
| | | | |
| Missouri - 0.9% | | | | | | | | |
Cape Girardeau County Industrial Development Authority Revenue Bonds | | 60 | | 5.500 | | 06/01/34 | | 61 |
City of State Louis Missouri Revenue Bonds | | 1,680 | | 6.125 | | 07/01/24 | | 1,777 |
Missouri Highway & Transportation Commission Revenue Bonds | | 2,500 | | 5.250 | | 05/01/23 | | 2,820 |
| | | | | | | | |
| | | | | | | | 4,658 |
| | | | | | | | |
| | | | |
| Nevada - 1.0% | | | | | | | | |
County of Clark Nevada General Obligation Limited (µ) | | 1,000 | | 5.000 | | 11/01/13 | | 1,113 |
County of Clark Nevada Revenue Bonds | | 1,000 | | 5.000 | | 07/01/12 | | 1,070 |
County of Clark Nevada Revenue Bonds (µ) | | 1,000 | | 5.000 | | 07/01/22 | | 1,050 |
County of Clark Nevada Revenue Bonds | | 1,500 | | 5.000 | | 07/01/22 | | 1,607 |
Truckee Meadows Water Authority Revenue Bonds (µ) | | 500 | | 5.500 | | 07/01/11 | | 528 |
| | | | | | | | |
| | | | | | | | 5,368 |
| | | | | | | | |
| | | | |
| New Jersey - 2.4% | | | | | | | | |
New Jersey Economic Development Authority Revenue Bonds (µ) | | 1,000 | | 5.000 | | 06/15/11 | | 1,015 |
New Jersey Economic Development Authority Revenue Bonds | | 1,000 | | 5.000 | | 09/01/12 | | 1,080 |
New Jersey Economic Development Authority Revenue Bonds | | 1,000 | | 5.250 | | 03/01/14 | | 1,112 |
New Jersey Economic Development Authority Revenue Bonds | | 1,020 | | 5.375 | | 06/15/15 | | 1,052 |
New Jersey Educational Facilities Authority Revenue Bonds | | 1,000 | | 5.750 | | 09/01/10 | | 1,017 |
New Jersey Educational Facilities Authority Revenue Bonds | | 2,000 | | 5.000 | | 07/01/16 | | 2,327 |
New Jersey Health Care Facilities Financing Authority Revenue Bonds (µ) | | 1,000 | | 5.000 | | 09/15/17 | | 1,107 |
New Jersey Health Care Facilities Financing Authority Revenue Bonds (Ê)(µ) | | 300 | | 0.230 | | 07/01/43 | | 300 |
New Jersey Transportation Trust Fund Authority Revenue Bonds | | 1,000 | | 5.000 | | 12/15/16 | | 1,114 |
New Jersey Transportation Trust Fund Authority Revenue Bonds | | 1,000 | | 5.000 | | 12/15/18 | | 1,106 |
Tobacco Settlement Financing Corp. Revenue Bonds | | 1,170 | | 4.500 | | 06/01/23 | | 1,118 |
| | | | | | | | |
| | | | | | | | 12,348 |
| | | | | | | | |
| | | | |
| New Mexico - 0.8% | | | | | | | | |
State of New Mexico Revenue Bonds | | 3,500 | | 5.000 | | 07/01/15 | | 4,030 |
| | | | | | | | |
| | |
| 220 | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
| New York - 9.6% | | | | | | | | |
Battery Park City Authority Revenue Bonds | | 1,500 | | 5.250 | | 11/01/22 | | 1,652 |
Brooklyn Arena Local Development Corp. Revenue Bonds | | 2,250 | | 6.500 | | 07/15/30 | | 2,392 |
City of New York New York General Obligation Unlimited | | 1,000 | | 5.000 | | 08/01/11 | | 1,054 |
City of New York New York General Obligation Unlimited (æ) | | 110 | | 5.750 | | 08/01/11 | | 113 |
City of New York New York General Obligation Unlimited | | 15 | | 5.750 | | 08/01/11 | | 15 |
City of New York New York General Obligation Unlimited | | 850 | | 5.000 | | 03/01/12 | | 908 |
City of New York New York General Obligation Unlimited | | 750 | | 5.000 | | 11/01/12 | | 818 |
City of New York New York General Obligation Unlimited | | 235 | | 5.250 | | 11/01/12 | | 251 |
City of New York New York General Obligation Unlimited (µ) | | 1,170 | | 5.000 | | 08/01/16 | | 1,326 |
Erie County Industrial Development Agency (The) Revenue Bonds | | 1,025 | | 5.000 | | 05/01/14 | | 1,136 |
Metropolitan Transportation Authority Revenue Bonds | | 1,430 | | 6.500 | | 11/15/28 | | 1,658 |
New York City Municipal Water Finance Authority Revenue Bonds | | 1,500 | | 5.250 | | 06/15/12 | | 1,639 |
New York City Municipal Water Finance Authority Revenue Bonds (µ) | | 865 | | 5.000 | | 06/15/21 | | 946 |
New York State Dormitory Authority Revenue Bonds | | 1,790 | | 5.000 | | 07/01/16 | | 1,944 |
New York State Dormitory Authority Revenue Bonds | | 1,000 | | 5.250 | | 02/15/21 | | 1,141 |
New York State Dormitory Authority Revenue Bonds | | 1,000 | | 6.500 | | 12/01/21 | | 1,051 |
New York State Dormitory Authority Revenue Bonds (Ê) | | 2,000 | | 5.250 | | 11/15/23 | | 2,156 |
New York State Dormitory Authority Revenue Bonds | | 1,500 | | 5.000 | | 07/01/26 | | 1,596 |
New York State Dormitory Authority Revenue Bonds | | 2,500 | | 5.250 | | 07/01/29 | | 2,731 |
New York State Environmental Facilities Corp. Revenue Bonds (µ) | | 1,000 | | 6.000 | | 06/15/12 | | 1,100 |
New York State Environmental Facilities Corp. Revenue Bonds | | 770 | | 5.000 | | 06/15/22 | | 859 |
New York State Environmental Facilities Corp. Revenue Bonds | | 1,640 | | 5.000 | | 09/15/23 | | 1,805 |
New York State Thruway Authority Revenue Bonds (µ) | | 1,575 | | 5.250 | | 04/01/13 | | 1,755 |
New York State Thruway Authority Revenue Bonds | | 4,000 | | 5.000 | | 04/01/14 | | 4,501 |
New York State Thruway Authority Revenue Notes | | 1,715 | | 4.000 | | 07/15/11 | | 1,781 |
Sales Tax Asset Receivable Corp. Revenue Bonds (µ) | | 1,700 | | 5.000 | | 10/15/25 | | 1,836 |
Sales Tax Asset Receivable Corp. Revenue Bonds (µ) | | 2,500 | | 5.000 | | 10/15/29 | | 2,655 |
Tobacco Settlement Financing Corp. Revenue Bonds | | 1,030 | | 5.000 | | 06/01/12 | | 1,111 |
Town of Hempstead Local Development Corp. Revenue Bonds | | 1,600 | | 5.750 | | 07/01/23 | | 1,755 |
Triborough Bridge & Tunnel Authority Revenue Bonds | | 950 | | 5.000 | | 11/15/17 | | 1,092 |
Triborough Bridge & Tunnel Authority Revenue Bonds (µ) | | 1,000 | | 5.500 | | 11/15/20 | | 1,185 |
Triborough Bridge & Tunnel Authority Revenue Bonds (Ê) | | 2,250 | | 5.000 | | 11/15/25 | | 2,512 |
Triborough Bridge & Tunnel Authority Revenue Bonds (Ê) | | 900 | | 5.000 | | 11/15/38 | | 1,026 |
TSASC, Inc. Revenue Bonds | | 900 | | 4.750 | | 06/01/22 | | 899 |
| | | | | | | | |
| | | | | | | | 50,399 |
| | | | | | | | |
| | | | |
| North Carolina - 2.2% | | | | | | | | |
City of Charlotte North Carolina General Obligation Unlimited | | 1,890 | | 5.000 | | 06/01/15 | | 2,191 |
County of Wake North Carolina General Obligation Unlimited | | 1,000 | | 5.000 | | 03/01/13 | | 1,111 |
North Carolina Eastern Municipal Power Agency Revenue Bonds | | 650 | | 5.000 | | 01/01/16 | | 708 |
North Carolina Medical Care Commission Revenue Bonds | | 410 | | 5.400 | | 10/01/27 | | 390 |
North Carolina Municipal Power Agency No. 1 Revenue Bonds (µ) | | 1,500 | | 6.000 | | 01/01/12 | | 1,616 |
North Carolina Municipal Power Agency No. 1 Revenue Bonds | | 200 | | 5.500 | | 01/01/13 | | 221 |
State of North Carolina General Obligation Unlimited | | 1,000 | | 5.000 | | 03/01/12 | | 1,078 |
State of North Carolina General Obligation Unlimited | | 1,000 | | 5.000 | | 03/01/14 | | 1,099 |
State of North Carolina General Obligation Unlimited | | 2,000 | | 5.000 | | 03/01/20 | | 2,252 |
University of North Carolina at Chapel Hill Revenue Bonds (æ) | | 1,065 | | 5.375 | | 12/01/14 | | 1,121 |
| | | | | | | | |
| | | | | | | | 11,787 |
| | | | | | | | |
| | | | |
| North Dakota - 0.1% | | | | | | | | |
County of Williams North Dakota Revenue Bonds | | 320 | | 5.000 | | 11/01/31 | | 295 |
| | | | | | | | |
| | | | |
| Ohio - 2.1% | | | | | | | | |
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | | 3,005 | | 5.125 | | 06/01/24 | | 2,755 |
Buckeye Tobacco Settlement Financing Authority Revenue Bonds | | 2,500 | | 5.875 | | 06/01/47 | | 1,870 |
Kent State University Revenue Bonds (µ) | | 2,000 | | 5.000 | | 05/01/16 | | 2,221 |
| | |
| Russell Tax Exempt Bond Fund | | 221 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
Ohio Air Quality Development Authority Revenue Bonds | | 1,110 | | 5.700 | | 02/01/14 | | 1,224 |
Ohio Air Quality Development Authority Revenue Bonds | | 1,050 | | 5.625 | | 06/01/18 | | 1,131 |
Ohio Air Quality Development Authority Revenue Bonds | | 1,725 | | 5.700 | | 08/01/20 | | 1,868 |
| | | | | | | | |
| | | | | | | | 11,069 |
| | | | | | | | |
| | | | |
| Oklahoma - 0.1% | | | | | | | | |
Oklahoma Development Finance Authority Revenue Bonds | | 275 | | 5.000 | | 10/01/13 | | 288 |
Oklahoma Housing Finance Agency Revenue Bonds | | 5 | | 7.600 | | 09/01/15 | | 5 |
| | | | | | | | |
| | | | | | | | 293 |
| | | | | | | | |
| | | | |
| Oregon - 1.5% | | | | | | | | |
City of Portland Oregon Revenue Bonds | | 2,000 | | 5.000 | | 06/15/18 | | 2,306 |
Clackamas County School District No. 62C General Obligation Unlimited (æ) | | 435 | | 6.000 | | 06/15/11 | | 438 |
Morrow County School District No. 1 General Obligation Unlimited (µ) | | 1,955 | | 5.500 | | 06/15/21 | | 2,330 |
Oregon State Department of Transportation Revenue Bonds | | 2,000 | | 5.250 | | 11/15/14 | | 2,319 |
State of Oregon General Obligation Limited | | 475 | | 5.700 | | 10/01/32 | | 477 |
| | | | | | | | |
| | | | | | | | 7,870 |
| | | | | | | | |
| | | | |
| Pennsylvania - 6.8% | | | | | | | | |
Allegheny County Hospital Development Authority Revenue Bonds | | 2,000 | | 5.000 | | 09/01/16 | | 2,225 |
Allegheny County Industrial Development Authority Revenue Bonds | | 925 | | 6.500 | | 05/01/17 | | 986 |
Allegheny County Port Authority Revenue Bonds (µ) | | 250 | | 5.500 | | 03/01/17 | | 260 |
Berks County Municipal Authority Revenue Bonds | | 1,960 | | 5.250 | | 11/01/24 | | 2,057 |
Berks County Vocational Technical School Authority Revenue Bonds (µ) | | 1,260 | | 5.000 | | 06/01/15 | | 1,357 |
Butler County Hospital Authority Revenue Bonds | | 1,000 | | 7.125 | | 07/01/29 | | 1,132 |
Commonwealth of Pennsylvania General Obligation Unlimited | | 2,000 | | 5.000 | | 08/01/13 | | 2,239 |
Commonwealth of Pennsylvania General Obligation Unlimited | | 2,500 | | 5.500 | | 01/01/14 | | 2,853 |
Commonwealth of Pennsylvania General Obligation Unlimited (µ) | | 1,000 | | 5.000 | | 09/01/15 | | 1,130 |
Commonwealth of Pennsylvania General Obligation Unlimited (µ) | | 1,300 | | 5.375 | | 07/01/17 | | 1,531 |
County of Allegheny Pennsylvania General Obligation Unlimited (µ) | | 1,000 | | 5.000 | | 10/01/15 | | 1,127 |
Cumberland County Municipal Authority Revenue Bonds | | 1,000 | | 6.250 | | 01/01/24 | | 1,060 |
Dauphin County General Authority Revenue Bonds | | 2,000 | | 6.000 | | 06/01/29 | | 2,104 |
Erie County Industrial Development Authority Revenue Bonds | | 180 | | 5.300 | | 04/01/12 | | 189 |
Pennsylvania Economic Development Financing Authority Revenue Bonds | | 1,200 | | 6.250 | | 10/15/23 | | 1,290 |
Pennsylvania Economic Development Financing Authority Revenue Bonds (Ê) | | 605 | | 5.000 | | 12/01/42 | | 639 |
Pennsylvania Higher Educational Facilties Authority Revenue Bonds | | 1,000 | | 5.000 | | 09/01/17 | | 1,148 |
Pennsylvania Higher Educational Facilties Authority Revenue Bonds (µ) | | 3,000 | | 5.000 | | 06/15/20 | | 3,192 |
Pennsylvania Intergovernmental Cooperative Authority Special Tax | | 1,000 | | 5.000 | | 06/15/17 | | 1,126 |
Pennsylvania Turnpike Commission Revenue Bonds (µ) | | 1,450 | | 5.500 | | 12/01/13 | | 1,640 |
Philadelphia Hospitals & Higher Education Facilities Authority Revenue Bonds (Ê) | | 3,300 | | 0.240 | | 07/01/31 | | 3,300 |
Philadelphia School District General Obligation Unlimited | | 1,480 | | 5.000 | | 06/01/12 | | 1,578 |
Sayre Health Care Facilities Authority Revenue Bonds (æ) | | 305 | | 5.300 | | 12/01/12 | | 323 |
University of Pittsburgh Revenue Bonds | | 1,000 | | 5.500 | | 09/15/21 | | 1,170 |
| | | | | | | | |
| | | | | | | | 35,656 |
| | | | | | | | |
| | | | |
| Puerto Rico - 6.2% | | | | | | | | |
Commonwealth of Puerto Rico General Obligation Unlimited | | 750 | | 5.250 | | 07/01/15 | | 813 |
Commonwealth of Puerto Rico General Obligation Unlimited (µ) | | 1,060 | | 5.000 | | 07/01/16 | | 1,163 |
Commonwealth of Puerto Rico General Obligation Unlimited | | 1,780 | | 5.250 | | 07/01/22 | | 1,825 |
Commonwealth of Puerto Rico General Obligation Unlimited (æ) | | 620 | | 5.250 | | 07/01/32 | | 733 |
Commonwealth of Puerto Rico General Obligation Unlimited | | 380 | | 5.250 | | 07/01/32 | | 380 |
Government Development Bank for Puerto Rico Revenue Bonds (µ) | | 2,830 | | 4.750 | | 12/01/15 | | 2,941 |
Puerto Rico Electric Power Authority Revenue Bonds | | 1,000 | | 5.000 | | 07/01/17 | | 1,088 |
Puerto Rico Electric Power Authority Revenue Bonds (µ) | | 500 | | 5.500 | | 07/01/17 | | 560 |
Puerto Rico Electric Power Authority Revenue Bonds | | 5,000 | | 5.750 | | 07/01/36 | | 5,399 |
Puerto Rico Highway & Transportation Authority Revenue Bonds | | 2,000 | | 5.000 | | 07/01/13 | | 2,123 |
| | |
| 222 | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
Puerto Rico Housing Finance Authority Revenue Bonds | | 180 | | 5.500 | | 12/01/15 | | 205 |
Puerto Rico Housing Finance Authority Revenue Bonds | | 1,830 | | 5.500 | | 12/01/16 | | 2,083 |
Puerto Rico Public Buildings Authority Revenue Bonds | | 500 | | 5.750 | | 07/01/16 | | 552 |
Puerto Rico Public Buildings Authority Revenue Bonds (æ) | | 2,000 | | 5.500 | | 07/01/23 | | 2,300 |
Puerto Rico Public Finance Corp. Revenue Bonds (Ê)(µ) | | 2,250 | | 5.750 | | 08/01/27 | | 2,340 |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | | 2,500 | | 5.500 | | 08/01/22 | | 2,765 |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | | 1,000 | | 6.125 | | 08/01/29 | | 1,049 |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds (Ê) | | 4,000 | | 5.000 | | 08/01/39 | | 4,178 |
| | | | | | | | |
| | | | | | | | 32,497 |
| | | | | | | | |
| | | | |
| Rhode Island - 0.2% | | | | | | | | |
Rhode Island Economic Development Corp. Revenue Bonds (µ) | | 1,000 | | 5.000 | | 06/15/12 | | 1,078 |
| | | | | | | | |
| | | | |
| South Carolina - 0.9% | | | | | | | | |
Greenville County School District Revenue Bonds | | 1,000 | | 5.000 | | 12/01/11 | | 1,056 |
South Carolina Transportation Infrastructure Bank Revenue Bonds | | 2,500 | | 5.000 | | 10/01/17 | | 2,798 |
South Carolina Transportation Infrastructure Bank Revenue Bonds (µ)(æ) | | 1,000 | | 5.250 | | 10/01/31 | | 1,067 |
| | | | | | | | |
| | | | | | | | 4,921 |
| | | | | | | | |
| | | | |
| South Dakota - 0.3% | | | | | | | | |
South Dakota Housing Development Authority Revenue Bonds | | 270 | | 4.800 | | 05/01/22 | | 274 |
South Dakota State Building Authority Revenue Bonds (µ) | | 1,330 | | 5.000 | | 09/01/12 | | 1,449 |
| | | | | | | | |
| | | | | | | | 1,723 |
| | | | | | | | |
| | | | |
| Tennessee - 1.6% | | | | | | | | |
City of Memphis Tennessee Revenue Bonds | | 2,500 | | 5.000 | | 12/01/14 | | 2,835 |
City of Memphis Tennessee Revenue Bonds | | 1,135 | | 5.000 | | 12/01/15 | | 1,303 |
Clarksville Natural Gas Acquisition Corp. Revenue Bonds | | 750 | | 5.000 | | 12/15/14 | | 796 |
Memphis-Shelby County Airport Authority Revenue Bonds | | 2,160 | | 5.050 | | 09/01/12 | | 2,305 |
Tennessee Housing Development Agency Revenue Bonds | | 950 | | 5.375 | | 01/01/18 | | 953 |
| | | | | | | | |
| | | | | | | | 8,192 |
| | | | | | | | |
| | | | |
| Texas - 10.1% | | | | | | | | |
Alvin Independent School District General Obligation Unlimited | | 545 | | 6.750 | | 08/15/10 | | 555 |
Canadian River Municipal Water Authority Revenue Bonds (µ) | | 800 | | 5.000 | | 02/15/17 | | 872 |
Canadian River Municipal Water Authority Revenue Bonds (µ) | | 415 | | 5.000 | | 02/15/18 | | 449 |
City of Austin Texas Revenue Bonds (µ) | | 1,000 | | 5.250 | | 11/15/14 | | 1,144 |
City of Bryan Texas Revenue Bonds | | 1,000 | | 5.000 | | 07/01/15 | | 1,120 |
City of Dallas Texas Revenue Bonds (µ) | | 3,500 | | 5.000 | | 10/01/24 | | 3,509 |
City of Fort Worth Texas Revenue Bonds | | 1,000 | | 5.000 | | 02/15/13 | | 1,102 |
City of Houston Texas Revenue Bonds | | 1,500 | | 5.000 | | 07/01/17 | | 1,663 |
City of New Braunfels Texas General Obligation Limited (µ)(æ) | | 665 | | 5.250 | | 10/01/21 | | 774 |
City of San Antonio Texas Revenue Bonds | | 1,000 | | 5.250 | | 02/01/13 | | 1,109 |
City of San Antonio Texas Revenue Bonds | | 1,000 | | 5.000 | | 02/01/14 | | 1,127 |
City of San Antonio Texas Revenue Bonds | | 1,000 | | 5.000 | | 02/01/18 | | 1,147 |
Conroe Independent School District General Obligation Unlimited | | 1,445 | | 5.000 | | 02/15/13 | | 1,590 |
County of Fort Bend Texas General Obligation Limited (µ) | | 1,000 | | 5.000 | | 03/01/16 | | 1,137 |
Dallas Convention Center Hotel Development Corp. Revenue Bonds | | 2,150 | | 5.250 | | 01/01/23 | | 2,260 |
Dallas Independent School District General Obligation Unlimited | | 2,100 | | 5.000 | | 02/15/14 | | 2,366 |
Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds | | 280 | | 5.000 | | 11/01/22 | | 297 |
Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds | | 200 | | 5.000 | | 11/01/23 | | 211 |
Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds | | 250 | | 5.000 | | 11/01/24 | | 263 |
Dickinson Independent School District General Obligation Unlimited | | 1,000 | | 5.000 | | 02/15/21 | | 1,075 |
Dickinson Independent School District General Obligation Unlimited | | 1,500 | | 5.000 | | 02/15/23 | | 1,602 |
Fort Worth Independent School District General Obligation Unlimited | | 2,000 | | 5.000 | | 02/15/18 | | 2,310 |
Grand Prairie Independent School District General Obligation Unlimited | | 750 | | 5.000 | | 02/15/19 | | 838 |
| | |
| Russell Tax Exempt Bond Fund | | 223 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
Laredo Independent School District General Obligation Unlimited (æ) | | 1,070 | | 5.375 | | 08/01/16 | | 1,136 |
Lower Colorado River Authority Revenue Bonds (µ) | | 430 | | 5.875 | | 05/15/14 | | 431 |
Lower Colorado River Authority Revenue Bonds | | 1,300 | | 5.000 | | 05/15/16 | | 1,471 |
McKinney Independent School District General Obligation Unlimited | | 1,200 | | 6.000 | | 02/15/18 | | 1,467 |
North East Independent School District General Obligation Unlimited | | 1,000 | | 5.000 | | 08/01/18 | | 1,147 |
North East Independent School District General Obligation Unlimited (µ)(æ) | | 1,000 | | 5.000 | | 08/01/33 | | 1,148 |
North Texas Municipal Water District Revenue Bonds (µ) | | 2,000 | | 5.000 | | 09/01/13 | | 2,237 |
North Texas Tollway Authority Revenue Bonds | | 960 | | 6.000 | | 01/01/24 | | 1,051 |
North Texas Tollway Authority Revenue Bonds (Ê) | | 1,235 | | 5.750 | | 01/01/38 | | 1,373 |
Round Rock Independent School District General Obligation Unlimited | | 1,000 | | 6.500 | | 08/01/10 | | 1,015 |
Round Rock Independent School District General Obligation Unlimited | | 430 | | 5.375 | | 08/01/12 | | 473 |
Round Rock Independent School District General Obligation Unlimited | | 1,350 | | 5.250 | | 08/01/14 | | 1,555 |
SA Energy Acquisition Public Facility Corp. Revenue Bonds | | 1,500 | | 5.250 | | 08/01/15 | | 1,548 |
Sabine River Authority Revenue Bonds | | 1,500 | | 5.200 | | 05/01/28 | | 802 |
Spring Independent School District General Obligation Unlimited | | 1,000 | | 5.000 | | 08/15/16 | | 1,149 |
Texas A&M University Revenue Bonds | | 2,000 | | 5.000 | | 05/15/15 | | 2,286 |
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds | | 1,445 | | 7.500 | | 12/31/31 | | 1,585 |
Texas State Transportation Commission Revenue Bonds | | 2,500 | | 5.000 | | 04/01/25 | | 2,678 |
| | | | | | | | |
| | | | | | | | 53,072 |
| | | | | | | | |
| | | | |
| Utah - 0.7% | | | | | | | | |
County of Utah Utah Revenue Bonds | | 200 | | 5.050 | | 11/01/17 | | 207 |
Intermountain Power Agency Revenue Bonds (µ) | | 1,400 | | 6.500 | | 07/01/10 | | 1,413 |
State of Utah General Obligation Unlimited | | 2,000 | | 5.000 | | 07/01/16 | | 2,322 |
| | | | | | | | |
| | | | | | | | 3,942 |
| | | | | | | | |
| | | | |
| Virgin Islands - 0.0% | | | | | | | | |
Virgin Islands Public Finance Authority Revenue Bonds | | 200 | | 5.000 | | 10/01/13 | | 216 |
| | | | | | | | |
| | | | |
| Virginia - 2.6% | | | | | | | | |
Chesapeake Economic Development Authority Revenue Bonds (Ê) | | 550 | | 3.600 | | 02/01/32 | | 573 |
Chesterfield County Economic Development Authority Revenue Bonds | | 650 | | 5.000 | | 05/01/23 | | 699 |
Commonwealth of Virginia General Obligation Unlimited | | 1,000 | | 5.000 | | 06/01/23 | | 1,129 |
County of Fairfax Virginia General Obligation Unlimited | | 1,750 | | 5.250 | | 04/01/14 | | 2,006 |
County of Loudoun Virginia General Obligation Unlimited | | 1,000 | | 5.000 | | 07/01/14 | | 1,142 |
University of Virginia Revenue Bonds | | 1,295 | | 5.000 | | 06/01/20 | | 1,385 |
University of Virginia Revenue Bonds | | 1,495 | | 5.000 | | 06/01/21 | | 1,595 |
Virginia College Building Authority Revenue Bonds | | 1,065 | | 5.000 | | 02/01/14 | | 1,200 |
Virginia College Building Authority Revenue Bonds (æ) | | 1,000 | | 5.000 | | 02/01/21 | | 1,131 |
Virginia Commonwealth Transportation Board Revenue Bonds | | 360 | | 5.375 | | 05/15/12 | | 377 |
Virginia Public Building Authority Revenue Bonds | | 1,000 | | 5.000 | | 08/01/14 | | 1,139 |
Virginia Public School Authority Revenue Bonds | | 1,000 | | 5.000 | | 08/01/17 | | 1,160 |
| | | | | | | | |
| | | | | | | | 13,536 |
| | | | | | | | |
| | | | |
| Washington - 2.8% | | | | | | | | |
County of King Washington Revenue Bonds (µ) | | 1,625 | | 5.000 | | 01/01/14 | | 1,821 |
Energy Northwest Revenue Bonds | | 1,000 | | 5.000 | | 07/01/11 | | 1,052 |
Energy Northwest Revenue Bonds | | 1,000 | | 5.000 | | 07/01/14 | | 1,133 |
Energy Northwest Revenue Bonds | | 2,500 | | 5.000 | | 07/01/15 | | 2,859 |
Energy Northwest Revenue Bonds | | 1,000 | | 7.125 | | 07/01/16 | | 1,252 |
King County Public Hospital District No. 2 General Obligation Limited (µ) | | 1,000 | | 5.000 | | 12/01/19 | | 1,063 |
King County School District No. 405 Bellevue General Obligation Unlimited (µ) | | 1,000 | | 5.000 | | 12/01/14 | | 1,134 |
Mason County School District No. 309 Shelton General Obligation Unlimited (µ) | | 1,115 | | 5.000 | | 12/01/18 | | 1,287 |
Pierce County School District No. 3 Puyallup General Obligation Unlimited (µ) | | 1,000 | | 5.000 | | 12/01/18 | | 1,116 |
State of Washington General Obligation Unlimited | | 1,000 | | 5.000 | | 07/01/17 | | 1,151 |
Tobacco Settlement Authority of Washington Revenue Bonds | | 745 | | 6.500 | | 06/01/26 | | 768 |
| | | | | | | | |
| | | | | | | | 14,636 |
| | | | | | | | |
| | |
| 224 | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity | | Market
Value
$ |
| | | | | | | | |
| Wisconsin - 1.0% | | | | | | | | |
City of Madison Wisconsin Revenue Bonds | | 280 | | 4.875 | | 10/01/27 | | 299 |
State of Wisconsin Certificate Of Participation (µ) | | 2,825 | | 5.000 | | 03/01/11 | | 2,921 |
Wisconsin Health & Educational Facilities Authority Revenue Bonds (µ) | | 1,425 | | 5.000 | | 12/01/10 | | 1,458 |
Wisconsin Health & Educational Facilities Authority Revenue Bonds | | 210 | | 5.250 | | 05/01/12 | | 217 |
Wisconsin Health & Educational Facilities Authority Revenue Bonds | | 220 | | 5.250 | | 05/01/13 | | 229 |
| | | | | | | | |
| | | | | | | | 5,124 |
| | | | | | | | |
| | | | |
| Total Municipal Bonds (cost $484,990) | | | | | | | | 502,703 |
| | | | | | | | |
| | | | |
| Short-Term Investments - 3.7% | | | | | | | | |
Russell U.S. Cash Management Fund | | 19,265,438 | | | | | | 19,265 |
| | | | | | | | |
| | | | |
| Total Short-Term Investments (cost $19,265) | | | | | | | | 19,265 |
| | | | | | | | |
| | | | |
| Total Investments - 99.6% (identified cost $504,255) | | | | | | | | 521,968 |
| | | | |
| Other Assets and Liabilities, Net - 0.4% | | | | | | | | 1,886 |
| | | | | | | | |
| | | | |
| Net Assets - 100% | | | | | | | | 523,854 |
| | | | | | | | |
| | |
| Quality Ratings as of % of Market Value (Unaudited) | | % |
| | |
AAA | | 24 |
AA | | 38 |
A | | 23 |
BBB | | 12 |
BB | | 1 |
Other | | 2 |
| | |
| | 100 |
| | |
| |
| Economic Sector Emphasis as a % of Market Value (Unaudited) | | |
General Obligation | | 20 |
Utilities Revenue | | 17 |
Education Revenue | | 16 |
Other Revenue | | 14 |
Industrial Revenue | | 13 |
Healthcare Revenue | | 8 |
Cash Equivalents | | 7 |
Pollution Control Revenue | | 2 |
Leasing Revenue | | 2 |
Housing Revenue | | 1 |
Refunded and Special Obligations | | — |
| | |
| | 100 |
| | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax Exempt Bond Fund | | 225 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Presentation of Portfolio Holdings — October 31, 2009
| | | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | | |
Municipal Bonds | | | | | | | | | | | | | | | |
Alabama | | $ | — | | $ | 5,432 | | $ | — | | $ | 5,432 | | 1.0 | |
Alaska | | | — | | | 1,260 | | | — | | | 1,260 | | 0.2 | |
Arizona | | | — | | | 8,815 | | | — | | | 8,815 | | 1.7 | |
California | | | — | | | 46,822 | | | — | | | 46,822 | | 8.9 | |
Colorado | | | — | | | 1,067 | | | — | | | 1,067 | | 0.2 | |
Connecticut | | | — | | | 3,683 | | | — | | | 3,683 | | 0.7 | |
Delaware | | | — | | | 1,410 | | | — | | | 1,410 | | 0.3 | |
District of Columbia | | | — | | | 1,037 | | | — | | | 1,037 | | 0.2 | |
Florida | | | — | | | 33,888 | | | — | | | 33,888 | | 6.5 | |
Georgia | | | — | | | 26,949 | | | — | | | 26,949 | | 5.1 | |
Guam | | | — | | | 1,368 | | | — | | | 1,368 | | 0.3 | |
Hawaii | | | — | | | 3,470 | | | — | | | 3,470 | | 0.7 | |
Idaho | | | — | | | 2,833 | | | — | | | 2,833 | | 0.5 | |
Illinois | | | — | | | 11,378 | | | — | | | 11,378 | | 2.2 | |
Indiana | | | — | | | 10,507 | | | — | | | 10,507 | | 2.0 | |
Iowa | | | — | | | 4,332 | | | — | | | 4,332 | | 0.8 | |
Kansas | | | — | | | 819 | | | — | | | 819 | | 0.2 | |
Louisiana | | | — | | | 2,864 | | | — | | | 2,864 | | 0.5 | |
Maryland | | | — | | | 20,341 | | | — | | | 20,341 | | 3.9 | |
Massachusetts | | | — | | | 9,338 | | | — | | | 9,338 | | 1.8 | |
Michigan | | | — | | | 7,316 | | | — | | | 7,316 | | 1.4 | |
Minnesota | | | — | | | 13,950 | | | — | | | 13,950 | | 2.7 | |
Mississippi | | | — | | | 1,114 | | | — | | | 1,114 | | 0.2 | |
Missouri | | | — | | | 4,658 | | | — | | | 4,658 | | 0.9 | |
Nevada | | | — | | | 5,368 | | | — | | | 5,368 | | 1.0 | |
New Jersey | | | — | | | 12,348 | | | — | | | 12,348 | | 2.4 | |
New Mexico | | | — | | | 4,030 | | | — | | | 4,030 | | 0.8 | |
New York | | | — | | | 50,399 | | | — | | | 50,399 | | 9.6 | |
North Carolina | | | — | | | 11,787 | | | — | | | 11,787 | | 2.2 | |
North Dakota | | | — | | | 295 | | | — | | | 295 | | 0.1 | |
Ohio | | | — | | | 11,069 | | | — | | | 11,069 | | 2.1 | |
Oklahoma | | | — | | | 293 | | | — | | | 293 | | 0.1 | |
Oregon | | | — | | | 7,870 | | | — | | | 7,870 | | 1.5 | |
Pennsylvania | | | — | | | 35,656 | | | — | | | 35,656 | | 6.8 | |
Puerto Rico | | | — | | | 32,497 | | | — | | | 32,497 | | 6.2 | |
Rhode Island | | | — | | | 1,078 | | | — | | | 1,078 | | 0.2 | |
South Carolina | | | — | | | 4,921 | | | — | | | 4,921 | | 0.9 | |
South Dakota | | | — | | | 1,723 | | | — | | | 1,723 | | 0.3 | |
Tennessee | | | — | | | 8,192 | | | — | | | 8,192 | | 1.6 | |
Texas | | | — | | | 53,072 | | | — | | | 53,072 | | 10.1 | |
Utah | | | — | | | 3,942 | | | — | | | 3,942 | | 0.7 | |
Virgin Islands | | | — | | | 216 | | | — | | | 216 | | — | * |
Virginia | | | — | | | 13,536 | | | — | | | 13,536 | | 2.6 | |
Washington | | | — | | | 14,636 | | | — | | | 14,636 | | 2.8 | |
Wisconsin | | | — | | | 5,124 | | | — | | | 5,124 | | 1.0 | |
Short-Term Investments | | | — | | | 19,265 | | | — | | | 19,265 | | 3.7 | |
| | | | | | | | | | | | | | | |
Total Investments | | $ | — | | $ | 521,968 | | $ | — | | $ | 521,968 | | 99.6 | |
| | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | 0.4 | |
| | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets |
For a description of the levels see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 226 | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Real Estate Securities Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,307.30 | | $ | 1,018.20 |
Expenses Paid During Period* | | $ | 7.61 | | $ | 6.66 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.33% (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). |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,302.80 | | $ | 1,014.48 |
Expenses Paid During Period* | | $ | 11.88 | | $ | 10.39 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.08% (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). |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,307.40 | | $ | 1,018.20 |
Expenses Paid During Period* | | $ | 7.61 | | $ | 6.66 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.33% (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). |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,308.80 | | $ | 1,019.44 |
Expenses Paid During Period* | | $ | 6.18 | | $ | 5.41 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.08% (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). |
| | |
| Russell Real Estate Securities Fund | | 227 |
Russell Investment Company
Russell Real Estate Securities Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class Y | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,310.40 | | $ | 1,020.33 |
Expenses Paid During Period* | | $ | 5.16 | | $ | 4.51 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.90% (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). |
| | |
| 228 | | Russell Real Estate Securities Fund |
Russell Investment Company
Russell Real Estate Securities Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Common Stocks - 97.7% | | | | |
| Diversified - 9.1% | | | | |
BGP Holdings PLC (Æ)(ö)(Ø) | | 4,619,419 | | — |
BR Malls Participacoes SA (Æ) | | 35,557 | | 453 |
British Land Co. PLC (ö) | | 246,768 | | 1,761 |
CapitaLand, Ltd. | | 1,385,500 | | 3,739 |
Cousins Properties, Inc. (ö)(Ñ) | | 584,310 | | 4,710 |
Dexus Property Group (ö) | | 2,857,253 | | 2,130 |
Fabege AB | | 269,948 | | 1,682 |
FKP Property Group (ö) | | 754,639 | | 590 |
Forest City Enterprises, Inc. Class A (Æ)(Ñ) | | 650,549 | | 10,051 |
Glorious Property Holdings, Ltd. (Æ) | | 3,653,653 | | 1,249 |
Goldcrest Co., Ltd. | | 35,050 | | 956 |
GPT Group (ö) | | 923,003 | | 497 |
Great Eagle Holdings, Ltd. | | 151,222 | | 423 |
Hang Lung Properties, Ltd. - ADR | | 458,900 | | 1,641 |
Henderson Land Development Co., Ltd. | | 225,780 | | 1,158 |
Hysan Development Co., Ltd. | | 578,218 | | 1,697 |
IVG Immobilien AG (Æ) | | 122,370 | | 981 |
Keppel Land, Ltd. | | 550,022 | | 1,485 |
Kerry Properties, Ltd. | | 266,500 | | 1,228 |
KWG Property Holding, Ltd. | | 1,275,599 | | 737 |
Land Securities Group PLC (ö) | | 478,387 | | 4,776 |
Lexington Realty Trust (ö)(Ñ) | | 264,510 | | 1,873 |
Mirvac Group (ö) | | 1,180,811 | | 1,514 |
Mitsubishi Estate Co., Ltd. | | 475,000 | | 8,586 |
Mitsui Fudosan Co., Ltd. | | 211,618 | | 3,939 |
New World Development, Ltd. | | 1,970,000 | | 3,486 |
Norwegian Property ASA (Æ) | | 450,729 | | 894 |
Sponda OYJ | | 463,481 | | 1,814 |
Stockland (ö) | | 1,341,485 | | 4,898 |
Sumitomo Realty & Development Co., Ltd. | | 78,000 | | 1,606 |
Sun Hung Kai Properties, Ltd. | | 702,541 | | 9,809 |
Tokyu Land Corp. | | 124,000 | | 532 |
Unibail-Rodamco SE (ö) | | 25,470 | | 4,800 |
Vornado Realty Trust (ö)(Ñ) | | 1,181,847 | | 98,531 |
Wharf Holdings, Ltd. | | 702,000 | | 3,788 |
Wihlborgs Fastigheter AB | | 22,475 | | 455 |
| | | | |
| | | | 188,469 |
| | | | |
| | |
| Free Standing Retail - 0.5% | | | | |
National Retail Properties, Inc. (ö)(Ñ) | | 333,000 | | 7,836 |
Realty Income Corp. (ö)(Ñ) | | 80,300 | | 2,633 |
| | | | |
| | | | 10,469 |
| | | | |
| | |
| Health Care - 9.0% | | | | |
Brookdale Senior Living, Inc. (Æ)(Ñ) | | 542,331 | | 11,660 |
HCP, Inc. (ö)(Ñ) | | 963,636 | | 30,952 |
Health Care REIT, Inc. (ö) | | 905,955 | | 40,704 |
Nationwide Health Properties, Inc. (ö)(Ñ) | | 1,300,502 | | 45,544 |
Omega Healthcare Investors, Inc. (ö)(Ñ) | | 630,900 | | 12,631 |
Senior Housing Properties Trust (ö) | | 850,534 | | 19,120 |
Ventas, Inc. (ö)(Ñ) | | 564,248 | | 26,649 |
| | | | |
| | | | 187,260 |
| | | | |
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| Industrial - 5.5% | | | | |
AMB Property Corp. (ö) | | 853,877 | | 23,789 |
DCT Industrial Trust, Inc. (ö)(Ñ) | | 2,980,475 | | 15,677 |
EastGroup Properties, Inc. (ö)(Ñ) | | 186,317 | | 7,616 |
First Potomac Realty Trust (ö)(Ñ) | | 415,400 | | 6,738 |
Goodman Group (ö) | | 5,005,691 | | 3,289 |
ProLogis (ö)(Ñ) | | 4,355,045 | | 57,356 |
Segro PLC (ö) | | 99,996 | | 470 |
| | | | |
| | | | 114,935 |
| | | | |
| | |
| Lodging/Resorts - 7.7% | | | | |
DiamondRock Hospitality Co. (Æ)(ö)(Ñ) | | 632,502 | | 6,951 |
Gaylord Entertainment Co. (Æ)(Ñ) | | 29,473 | | 995 |
Hersha Hospitality Trust (ö) | | 788,770 | | 4,551 |
Hospitality Properties Trust (ö)(Ñ) | | 312,961 | | 8,290 |
Host Hotels & Resorts, Inc. (ö)(Ñ) | | 5,466,775 | | 88,890 |
Hyatt Hotels Corp. (Æ)(Ñ) | | 129,710 | | 5,340 |
LaSalle Hotel Properties (ö) | | 128,700 | | 3,391 |
Marriott International, Inc. Class A (Ñ) | | 182,626 | | 6,713 |
Pebblebrook Hotel Trust (Æ)(ö)(Ñ) | | 312,926 | | 6,165 |
Shangri-La Asia, Ltd. | | 634,650 | | 1,224 |
Starwood Hotels & Resorts Worldwide, Inc. (Ñ) | | 396,179 | | 21,596 |
Sunstone Hotel Investors, Inc. (Æ)(ö)(Ñ) | | 454,052 | | 5,780 |
| | | | |
| | | | 159,886 |
| | | | |
| | |
| Mixed Industrial/Office - 3.0% | | | | |
Duke Realty Corp. (ö) | | 278,450 | | 3,768 |
Liberty Property Trust (ö) | | 1,449,492 | | 49,007 |
PS Business Parks, Inc. (ö)(Ñ) | | 148,169 | | 8,890 |
| | | | |
| | | | 61,665 |
| | | | |
| | |
| Office - 11.0% | | | | |
Alexandria Real Estate Equities, Inc. (ö) | | 316,400 | | 22,404 |
BioMed Realty Trust, Inc. (ö)(Ñ) | | 805,031 | | 14,901 |
Boston Properties, Inc. (ö) | | 991,400 | | 78,182 |
Brookfield Properties Corp. | | 305,581 | | 4,883 |
CapitaCommercial Trust (Æ)(ö) | | 2,293,000 | | 2,016 |
Commonwealth Property Office Fund (ö) | | 1,743,866 | | 1,487 |
DA Office Investment Corp. Class A (ö) | | 206 | | 521 |
Derwent London PLC (ö) | | 41,093 | | 906 |
Great Portland Estates PLC (ö) | | 192,031 | | 922 |
Highwoods Properties, Inc. (ö)(Ñ) | | 265,639 | | 8,493 |
Hongkong Land Holdings, Ltd. | | 943,600 | | 4,985 |
ICADE (ö) | | 12,784 | | 1,245 |
ING Office Fund (ö) | | 936,274 | | 526 |
Japan Prime Realty Investment Corp. Class A (ö) | | 296 | | 703 |
Japan Real Estate Investment Corp. Class A (ö) | | 8 | | 67 |
Kenedix Realty Investment Corp. Class A (ö) | | 179 | | 589 |
Kilroy Realty Corp. (ö)(Ñ) | | 887,457 | | 31,114 |
Mack-Cali Realty Corp. (ö)(Ñ) | | 453,292 | | 15,575 |
Nippon Building Fund, Inc. Class A (ö) | | 164 | | 1,377 |
Piedmont Office Realty Trust, Inc. (ö)(Ñ) | | 596,555 | | 11,955 |
SL Green Realty Corp. (ö)(Ñ) | | 427,874 | | 26,601 |
| | | | |
| | | | 229,452 |
| | | | |
| | |
| Russell Real Estate Securities Fund | | 229 |
Russell Investment Company
Russell Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ |
| | | | |
| Regional Malls - 13.8% | | | | |
Aeon Mall Co., Ltd. | | 5,190 | | 110 |
CapitaMall Trust (Æ)(ö) | | 143,000 | | 201 |
CapitaMalls Asia, Ltd. | | 100,006 | | 158 |
Macerich Co. (The) (ö)(Ñ) | | 1,272,642 | | 56,900 |
Simon Property Group, Inc. (ö) | | 2,333,308 | | 207,711 |
Taubman Centers, Inc. (ö)(Ñ) | | 298,420 | | 12,943 |
Westfield Group (ö) | | 724,394 | | 8,570 |
| | | | |
| | | | 286,593 |
| | | | |
| | |
| Residential - 17.0% | | | | |
American Campus Communities, Inc. (ö) | | 205,976 | | 5,802 |
Apartment Investment & Management Co. Class A (ö)(Ñ) | | 534,125 | | 11,970 |
AvalonBay Communities, Inc. (ö) | | 706,619 | | 73,517 |
Boardwalk Real Estate Investment Trust (ö) | | 68,213 | | 2,753 |
BRE Properties, Inc. Class A (ö) | | 289,758 | | 12,100 |
Camden Property Trust (ö)(Ñ) | | 969,719 | | 46,964 |
China Overseas Land & Investment, Ltd. | | 632,920 | | 1,227 |
Colonial Properties Trust (ö)(Ñ) | | 478,921 | | 7,553 |
Deutsche Wohnen AG (Æ) | | 93,746 | | 848 |
Education Realty Trust, Inc. (ö)(Ñ) | | 394,237 | | 2,787 |
Equity Lifestyle Properties, Inc. (ö)(Ñ) | | 201,287 | | 11,173 |
Equity Residential (ö)(Ñ) | | 2,257,208 | | 102,184 |
Essex Property Trust, Inc. (ö)(Ñ) | | 372,100 | | 39,376 |
Home Properties, Inc. (ö)(Ñ) | | 132,003 | | 6,559 |
Post Properties, Inc. (ö)(Ñ) | | 695,218 | | 17,909 |
Shimao Property Holdings, Ltd. | | 103,919 | | 158 |
UDR, Inc. (ö)(Ñ) | | 504,650 | | 10,249 |
Unite Group PLC (Æ) | | 240,383 | | 797 |
| | | | |
| | | | 353,926 |
| | | | |
| | |
| Self Storage - 5.5% | | | | |
Big Yellow Group PLC (Æ)(ö) | | 169,783 | | 839 |
Extra Space Storage, Inc. (ö)(Ñ) | | 1,052,900 | | 15,815 |
Public Storage (ö) | | 941,937 | | 91,283 |
Sovran Self Storage, Inc. (ö) | | 157,502 | | 5,811 |
| | | | |
| | | | 113,748 |
| | | | |
| | |
| Shopping Centers - 8.7% | | | | |
Acadia Realty Trust (ö) | | 585,729 | | 11,176 |
Alexander’s, Inc. (ö) | | 9,679 | | 3,076 |
Aliansce Shopping Centers SA (Æ) | | 89,273 | | 493 |
Atrium European Real Estate, Ltd. | | 150,529 | | 894 |
Corio NV (ö) | | 21,391 | | 1,243 |
Developers Diversified Realty Corp. (ö)(Ñ) | | 1,580,614 | | 19,426 |
Excel Trust, Inc. (Æ)(ö)(Ñ) | | 54,200 | | 699 |
Federal Realty Investment Trust (ö)(Ñ) | | 306,407 | | 23,713 |
Hammerson PLC (ö) | | 564,125 | | 3,297 |
Inland Real Estate Corp. (ö)(Ñ) | | 172,517 | | 1,625 |
A portion of the portfolio has been fair valued as of period end.
| | | | | |
| | | Principal
Amount ($)
or Shares | | Market
Value
$ | |
Kimco Realty Corp. (ö) | | 1,675,946 | | 26,128 | |
Kite Realty Group Trust (ö) | | 1,013,000 | | 5,490 | |
Primaris Retail Real Estate Investment Trust (ö) | | 64,530 | | 1,066 | |
Regency Centers Corp. (ö)(Ñ) | | 1,366,738 | | 56,105 | |
Retail Opportunity Investments Corp. (Æ) | | 797,427 | | 7,879 | |
Tanger Factory Outlet Centers (ö)(��) | | 88,200 | | 3,669 | |
Weingarten Realty Investors (ö)(Ñ) | | 622,980 | | 14,403 | |
| | | | | |
| | | | 180,382 | |
| | | | | |
| | |
| Specialty - 6.9% | | | | | |
BR Properties SA | | 199,980 | | 1,432 | |
Digital Realty Trust, Inc. (ö)(Ñ) | | 1,002,099 | | 58,823 | |
DuPont Fabros Technology, Inc. (ö)(Ñ) | | 460,000 | | 10,198 | |
Entertainment Properties Trust (ö)(Ñ) | | 269,500 | | 11,783 | |
Plum Creek Timber Co., Inc. (ö)(Ñ) | | 1,037,534 | | 41,294 | |
Rayonier, Inc. (ö) | | 358,453 | | 17,557 | |
Weyerhaeuser Co. (Ñ) | | 71,488 | | 3,540 | |
| | | | | |
| | | | 144,627 | |
| | | | | |
| | |
Total Common Stocks
(cost $1,426,817) | | | | 2,031,412 | |
| | | | | |
| | |
| Short-Term Investments - 2.5% | | | | | |
Russell U.S. Cash Management Fund (£) | | 51,141,022 | | 51,141 | |
| | | | | |
| | |
Total Short-Term Investments
(cost $51,141) | | | | 51,141 | |
| | | | | |
| | |
| Other Securities - 22.7% | | | | | |
Russell U.S. Cash Collateral Fund (×) | | 266,447,957 | | 266,448 | |
State Street Securities Lending Quality Trust (×) | | 206,589,982 | | 206,049 | |
| | | | | |
| | |
Total Other Securities
(cost $473,038) | | | | 472,497 | |
| | | | | |
| | |
Total Investments - 122.9%
(identified cost $1,950,996) | | | | 2,555,050 | |
| | |
Other Assets and Liabilities,
Net - (22.9%) | | | | (476,358 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 2,078,692 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 230 | | Russell Real Estate Securities Fund |
Russell Investment Company
Russell Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | Amount
Bought | | Settlement
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | |
Royal Bank of Scotland | | HKD | | 1,237 | | USD | | 159 | | 5/4/2010 | | — | |
State Street Bank and Trust Company | | USD | | 92 | | CAD | | 92 | | 5/3/2010 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 60 | | CAD | | 60 | | 5/3/2010 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 52 | | CAD | | 53 | | 5/4/2010 | | (1 | ) |
State Street Bank and Trust Company | | USD | | 66 | | JPY | | 6,198 | | 5/6/2010 | | — | |
State Street Bank And Trust Company | | USD | | 69 | | JPY | | 6,464 | | 5/7/2010 | | — | |
State Street Bank and Trust Company | | USD | | 49 | | SGD | | 67 | | 5/3/2010 | | — | |
State Street Bank and Trust Company | | JPY | | 438 | | USD | | 5 | | 5/6/2010 | | — | |
State Street Bank and Trust Company | | JPY | | 1,159 | | USD | | 12 | | 5/6/2010 | | — | |
State Street Bank and Trust Company | | JPY | | 6,509 | | USD | | 69 | | 5/7/2010 | | — | |
State Street Bank and Trust Company | | SEK | | 129 | | USD | | 18 | | 5/3/2010 | | — | |
State Street Bank and Trust Company | | SGD | | 188 | | USD | | 137 | | 5/3/2010 | | — | |
State Street Bank and Trust Company | | SGD | | 34 | | USD | | 25 | | 5/4/2010 | | — | |
| | | | | | | | | | | | | |
| | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | (3 | ) |
| | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Real Estate Securities Fund | | 231 |
Russell Investment Company
Russell Real Estate Securities Fund
Presentation of Portfolio Holdings — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | Level 3 | | Total | | |
| | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | |
Diversified | | $ | 115,618 | | | $ | 72,851 | | $ | — | | $ | 188,469 | | | 9.1 | |
Free Standing Retail | | | 10,469 | | | | — | | | — | | | 10,469 | | | 0.5 | |
Health Care | | | 187,260 | | | | — | | | — | | | 187,260 | | | 9.0 | |
Industrial | | | 111,176 | | | | 3,759 | | | — | | | 114,935 | | | 5.5 | |
Lodging/Resorts | | | 158,662 | | | | 1,224 | | | — | | | 159,886 | | | 7.7 | |
Mixed Industrial/Office | | | 61,665 | | | | — | | | — | | | 61,665 | | | 3.0 | |
Office | | | 214,108 | | | | 15,344 | | | — | | | 229,452 | | | 11.0 | |
Regional Malls | | | 277,554 | | | | 9,039 | | | — | | | 286,593 | | | 13.8 | |
Residential | | | 350,896 | | | | 3,030 | | | — | | | 353,926 | | | 17.0 | |
Self Storage | | | 112,909 | | | | 839 | | | — | | | 113,748 | | | 5.5 | |
Shopping Centers | | | 174,948 | | | | 5,434 | | | — | | | 180,382 | | | 8.7 | |
Specialty | | | 144,627 | | | | — | | | — | | | 144,627 | | | 6.9 | |
Short-Term Investments | | | — | | | | 51,141 | | | — | | | 51,141 | | | 2.5 | |
Other Securities | | | — | | | | 472,497 | | | — | | | 472,497 | | | 22.7 | |
| | | | | | | | | | | | | | | | | |
Total Investments | | | 1,919,892 | | | | 635,158 | | | — | | | 2,555,050 | | | 122.9 | |
| | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | (22.9 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | (3 | ) | | | — | | | — | | | (3 | ) | | — | * |
| | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | | (3 | ) | | | — | | | — | | | (3 | ) | | | |
| | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets |
| ** | | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
For a description of the levels see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 232 | | Russell Real Estate Securities Fund |
Russell Investment Company
Russell Real Estate Securities Fund
Fair Value of Derivative Instruments — April 30, 2010 (Unaudited)
Amounts in thousands
| | | | |
| Derivatives not accounted for as hedging instruments | | Foreign
Currency
Contracts | |
| | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | * |
| | | | |
| |
| Location: Statement of Assets and Liabilities - Liabilities | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | 3 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Foreign
Currency
Contracts | |
| | | | |
| Location: Statement of Operations - Net realized gain (loss) | | | | |
Foreign currency-related transactions | | $ | 96 | |
| | | | |
| |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Foreign currency-related transactions | | $ | (3 | ) |
| | | | |
For further disclosure on derivatives see note 2 in Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Real Estate Securities Fund | | 233 |
Russell Investment Company
Russell Money Market Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,000.00 | | $ | 1,023.95 |
Expenses Paid During Period* | | $ | 0.84 | | $ | 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). Reflects amounts waived and/or reimbursed by the investment adviser. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,000.00 | | $ | 1,023.90 |
Expenses Paid During Period* | | $ | 0.89 | | $ | 0.90 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.18% (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). Reflects amounts waived and/or reimbursed by the investment adviser. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 234 | | Russell Money Market Fund |
Russell Investment Company
Russell Money Market Fund
Schedule of Investments — April 31, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | Rate
% | | Date
of
Maturity# | | Value
$ |
| | | | | | | | |
| Domestic Commercial Paper - 3.7% | | | | | | | | |
Straight-A Funding LLC | | 6,000 | �� | Zero coupon | | 05/03/10 | | 6,000 |
Straight-A Funding LLC | | 3,000 | | Zero coupon | | 05/12/10 | | 3,000 |
Straight-A Funding LLC | | 8,000 | | Zero coupon | | 07/01/10 | | 7,996 |
| | | | | | | | |
| | | | |
| Total Domestic Commercial Paper (amortized cost $16,996) | | | | | | | | 16,996 |
| | | | | | | | |
| | | | |
| Municipal Bonds - 3.2% | | | | | | | | |
New York State Housing Finance Agency, monthly demand (Ê) | | 14,700 | | 0.290 | | 05/15/31 | | 14,700 |
| | | | | | | | |
| | | | |
| Total Municipal Bonds (amortized cost $14,700) | | | | | | | | 14,700 |
| | | | | | | | |
| | | | |
| United States Government Agencies - 65.7% | | | | | | | | |
AID to INH Portugal Guaranteed Note, weekly demand (LIBOR Floater) (Ê)(Å) | | 5,000 | | 0.706 | | 12/01/17 | | 5,032 |
Fannie Mae Discount Notes | | 10,000 | | Zero coupon | | 05/05/10 | | 10,000 |
Fannie Mae Discount Notes | | 9,650 | | Zero coupon | | 05/12/10 | | 9,650 |
Fannie Mae Discount Notes | | 3,500 | | Zero coupon | | 05/13/10 | | 3,500 |
Fannie Mae Discount Notes | | 2,500 | | Zero coupon | | 05/14/10 | | 2,500 |
Fannie Mae Discount Notes | | 6,000 | | Zero coupon | | 05/19/10 | | 6,000 |
Fannie Mae Discount Notes | | 3,000 | | 2.375 | | 05/20/10 | | 3,003 |
Fannie Mae Discount Notes | | 8,000 | | Zero coupon | | 06/03/10 | | 7,999 |
Fannie Mae Discount Notes | | 6,000 | | Zero coupon | | 07/01/10 | | 5,998 |
Federal Farm Credit Bank Discount Corp. | | 25,000 | | Zero coupon | | 05/03/10 | | 25,000 |
Federal Farm Credit Bank Discount Corp. | | 8,000 | | Zero coupon | | 07/12/10 | | 7,997 |
Federal Home Loan Bank Discount Corp. | | 35,000 | | Zero coupon | | 05/03/10 | | 35,000 |
Federal Home Loan Bank Discount Corp. | | 19,639 | | Zero coupon | | 05/05/10 | | 19,639 |
Federal Home Loan Bank Discount Corp. | | 8,000 | | Zero coupon | | 05/07/10 | | 8,000 |
Federal Home Loan Bank Discount Corp. | | 5,000 | | Zero coupon | | 05/10/10 | | 5,000 |
Federal Home Loan Bank Discount Corp. | | 10,000 | | Zero coupon | | 05/12/10 | | 9,999 |
Federal Home Loan Bank Discount Corp. | | 24,350 | | Zero coupon | | 05/14/10 | | 24,349 |
Federal Home Loan Bank Discount Corp. | | 7,000 | | Zero coupon | | 05/19/10 | | 6,999 |
Federal Home Loan Bank Discount Corp. | | 7,400 | | Zero coupon | | 06/11/10 | | 7,398 |
Federal Home Loan Bank Discount Corp. | | 7,000 | | Zero coupon | | 07/01/10 | | 6,998 |
Federal Home Loan Bank Discount Corp. | | 8,000 | | Zero coupon | | 07/02/10 | | 7,997 |
Federal Home Loan Mortgage Corp. Discount Note | | 23,400 | | Zero coupon | | 05/04/10 | | 23,400 |
Federal Home Loan Mortgage Corp. Discount Note | | 2,200 | | Zero coupon | | 05/07/10 | | 2,200 |
Federal Home Loan Mortgage Corp. Discount Note | | 7,000 | | Zero coupon | | 05/10/10 | | 7,000 |
Federal Home Loan Mortgage Corp. Discount Note | | 9,500 | | Zero coupon | | 05/18/10 | | 9,499 |
Federal Home Loan Mortgage Corp. Discount Note | | 10,000 | | Zero coupon | | 05/24/10 | | 9,999 |
Federal Home Loan Mortgage Corp. Discount Note | | 3,000 | | Zero coupon | | 07/07/10 | | 2,999 |
Federal Home Loan Mortgage Corp. Discount Note | | 10,000 | | Zero coupon | | 07/26/10 | | 9,996 |
Freddie Mac Discount Notes | | 8,000 | | Zero coupon | | 05/06/10 | | 8,000 |
Puttable Floating Option Taxable Receipts (Ê)(Þ) | | 14,000 | | 0.770 | | 04/01/26 | | 14,000 |
| | | | | | | | |
| | | | |
| Total United States Government Agencies (amortized cost $305,151) | | | | | | | | 305,151 |
| | | | | | | | |
| | | | |
| United States Treasury - 27.3% | | | | | | | | |
United States Treasury Bills | | 67,966 | | Zero coupon | | 05/06/10 | | 67,965 |
United States Treasury Bills | | 19,000 | | Zero coupon | | 05/13/10 | | 18,999 |
United States Treasury Bills | | 10,000 | | Zero coupon | | 05/27/10 | | 9,999 |
United States Treasury Bills | | 30,000 | | Zero coupon | | 07/01/10 | | 29,993 |
| | | | | | | | |
| | | | |
| Total United States Treasury (amortized cost $126,956) | | | | | | | | 126,956 |
| | | | | | | | |
| | | | |
Total Investments - 99.9%
(amortized cost $463,803)(†) | | | | | | | | 463,803 |
| | | | |
| Other Assets and Liabilities, Net - 0.1% | | | | | | | | 680 |
| | | | | | | | |
| | | | |
| Net Assets - 100.0% | | | | | | | | 464,483 |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Money Market Fund | | 235 |
Russell Investment Company
Russell Money Market Fund
Presentation of Portfolio Holdings—April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | |
| | | Market Value | | % of Net
Assets |
| Portfolio Summary | | Level 1 | | Level 2 | | Level 3 | | Total | |
| | | | | | | | | | | | | | |
Domestic Commercial Paper | | $ | — | | $ | 16,996 | | $ | — | | $ | 16,996 | | 3.7 |
Municipal Bonds | | | — | | | 14,700 | | | — | | | 14,700 | | 3.2 |
United States Government Agencies | | | — | | | 305,151 | | | — | | | 305,151 | | 65.7 |
United States Treasury | | | — | | | 126,956 | | | — | | | 126,956 | | 27.3 |
| | | | | | | | | | | | | | |
Total Investments | | | — | | | 463,803 | | | — | | | 463,803 | | 99.9 |
| | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | 0.1 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 100.0 |
| | | | | | | | | | | | | | |
For a description of the levels see note 2 in the Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
| | |
| 236 | | Russell Money Market Fund |
Russell Investment Company
Russell Funds
Notes to Schedules of Investments — April 30, 2010 (Unaudited)
Footnotes:
| (Æ) | Nonincome-producing security. |
| (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. |
| (ç) | At amortized cost, which approximates market. |
| (ž) | 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 held as collateral in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. |
| (×) | The security is purchased with the cash collateral from the 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 may not be registered under the Securities Act of 1933. |
| (Å) | Illiquid and restricted security. |
| (Û) | All or a portion of the shares of this security are held as collateral in connection with securities sold short. |
| (†) | The identified cost for Federal income tax purposes is the same as shown above. |
| (#) | All securities with a maturity greater than thirteen months have a demand feature or an optional or mandatory put, or are pre-refunded, resulting in an effective maturity of thirteen months or less. Additionally, all daily and weekly demand securities are backed by direct payment of letters of credit. |
| (£) | A portion of this asset has been segregated to cover the liability caused by the valuation of the SLQT. |
Abbreviations:
ADR - American Depositary Receipt
ADS - American Depositary Share
BBSW - Bank Bill Swap Reference Rate
CIBOR - Copenhagen Interbank Offered Rate
CME - Chicago Mercantile Exchange
CMO - Collateralized Mortgage Obligation
CVO - Contingent Value Obligation
EMU - European Economic and Monetary Union
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
LIBOR - London Interbank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
PIK - Payment in Kind
REMIC - Real Estate Mortgage Investment Conduit
STRIP - Separate Trading of Registered Interest and Principal of Securities
TBA - To Be Announced Security
UK - United Kingdom
Foreign Currency Abbreviations:
| | | | |
| ARS - Argentine peso | | HUF - Hungarian forint | | PKR - Pakistani rupee |
| AUD - Australian dollar | | IDR - Indonesian rupiah | | PLN - Polish zloty |
| BRL - Brazilian real | | ILS - Israeli shekel | | RUB - Russian ruble |
| CAD - Canadian dollar | | INR - Indian rupee | | SEK - Swedish krona |
| CHF - Swiss franc | | ISK - Iceland krona | | SGD - Singapore dollar |
| CLP - Chilean peso | | 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 Rica colon | | KRW - South Korean won | | TWD - Taiwanese dollar |
| CZK - Czech koruna | | MXN - Mexican peso | | USD - United States dollar |
| DKK - Danish krone | | MYR - Malaysian ringgit | | VEB - Venezuelan bolivar |
| EGP - Egyptian pound | | NOK - Norwegion krone | | VND - Vietnam dong |
| EUR - Euro | | NZD - New Zealand dollar | | ZAR - South African rand |
| GBP - British pound sterling | | PEN - Peruvian nouveau sol | | |
| HKD - Hong Kong dollar | | PHP - Philippine peso | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Money Market Fund | | 237 |
Russell Investment Company
Russell Funds
Statements of Assets and Liabilities — April 30, 2010 (Unaudited)
| | | | | | | | | | | | |
| Amounts in thousands | | Russell U.S. Core
Equity Fund | | Russell U.S.
Quantitative
Equity Fund | | Russell U.S.
Growth Fund | | Russell U.S. Value
Fund |
| | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Investments, at identified cost | | $ | 4,348,746 | | $ | 3,891,914 | | $ | 84,954 | | $ | 160,425 |
Investments, at market*** | | | 5,080,565 | | | 4,369,023 | | | 101,862 | | | 184,671 |
Cash | | | — | | | — | | | — | | | — |
Cash (restricted) | | | 18,950 | | | 12,100 | | | 440 | | | 725 |
Foreign currency holdings* | | | — | | | — | | | — | | | — |
Unrealized appreciation on foreign currency exchange contracts | | | — | | | — | | | — | | | — |
Receivables: | | | | | | | | | | | | |
Dividends and interest | | | 3,882 | | | 3,442 | | | 50 | | | 110 |
Dividends from affiliated Russell U.S. Cash Management Fund | | | 14 | | | 7 | | | 1 | | | — |
Investments sold | | | 57,204 | | | 80,677 | | | 1,090 | | | 2,084 |
Fund shares sold | | | 11,529 | | | 5,172 | | | 131 | | | 160 |
Foreign taxes recoverable | | | — | | | — | | | — | | | — |
From affiliates | | | — | | | — | | | — | | | — |
Investments matured****** | | | — | | | — | | | — | | | — |
Daily variation margin on futures contracts | | | — | | | — | | | — | | | — |
Other receivable | | | — | | | — | | | — | | | — |
Prepaid expenses | | | 59 | | | 425 | | | 1 | | | 3 |
Interest rate swap contracts, at market value***** | | | — | | | — | | | — | | | — |
Credit default swap contracts, at market value**** | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | |
Total assets | | | 5,172,203 | | | 4,470,846 | | | 103,575 | | | 187,753 |
| | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | |
Due to Custodian | | | — | | | — | | | — | | | — |
Due to Broker | | | — | | | — | | | — | | | — |
Investments purchased | | | 52,135 | | | 74,608 | | | 1,213 | | | 2,387 |
Fund shares redeemed | | | 7,388 | | | 7,770 | | | 313 | | | 253 |
Accrued fees to affiliates | | | 2,859 | | | 2,364 | | | 69 | | | 132 |
Other accrued expenses | | | 201 | | | 206 | | | 38 | | | 58 |
Daily variation margin on futures contracts | | | 4,466 | | | 2,139 | | | 80 | | | 131 |
Dividends for securities sold short | | | — | | | 108 | | | — | | | — |
Deferred tax liability | | | — | | | — | | | — | | | — |
Income distribution | | | — | | | — | | | — | | | — |
Other payable | | | — | | | — | | | — | | | — |
Unrealized depreciation on foreign currency exchange contracts | | | — | | | — | | | — | | | — |
Unrealized depreciation on index swaps | | | — | | | — | | | — | | | — |
Options written, at market value** | | | — | | | — | | | — | | | — |
Securities sold short at market value****** | | | — | | | 396,805 | | | — | | | — |
Payable upon return of securities loaned | | | 252,714 | | | — | | | 5,336 | | | 25,607 |
Interest rate swap contracts, at market value***** | | | — | | | — | | | — | | | — |
Credit default swap contracts, at market value**** | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | |
Total liabilities | | | 319,763 | | | 484,000 | | | 7,049 | | | 28,568 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Net Assets | | $ | 4,852,440 | | $ | 3,986,846 | | $ | 96,526 | | $ | 159,185 |
| | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 238 | | Statements of Assets and Liabilities |
| | | | | | | | | | |
Russell U.S. Small &
Mid Cap Fund | | Russell International
Developed Markets
Fund | | Russell Global
Equity Fund | | Russell Emerging
Markets Fund |
| | | | | | | | | | |
| | | | | | | | | | |
| $ | 1,688,498 | | $ | 4,510,730 | | $ | 1,756,487 | | $ | 1,119,499 |
| | 2,004,923 | | | 4,842,576 | | | 1,932,266 | | | 1,500,880 |
| | — | | | 3,568 | | | — | | | 613 |
| | 4,700 | | | 36,083 | | | 8,700 | | | 6,000 |
| | — | | | 12,438 | | | 3,874 | | | 9,426 |
| | — | | | 6,701 | | | 2,392 | | | 1,489 |
| | | | | | | | | | |
| | 650 | | | 14,207 | | | 3,300 | | | 3,595 |
| | | |
| | 4 | | | 23 | | | 7 | | | 3 |
| | 25,216 | | | 79,206 | | | 23,682 | | | 5,446 |
| | 2,734 | | | 8,800 | | | 2,843 | | | 3,447 |
| | — | | | 2,235 | | | 533 | | | 100 |
| | — | | | — | | | — | | | — |
| | — | | | — | | | — | | | — |
| | — | | | 1,451 | | | 1,229 | | | 444 |
| | — | | | — | | | — | | | 6 |
| | 48 | | | 52 | | | 63 | | | 104 |
| | — | | | — | | | — | | | — |
| | — | | | — | | | — | | | — |
| | | | | | | | | | | |
| | 2,038,275 | | | 5,007,340 | | | 1,978,889 | | | 1,531,553 |
| | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | — | | | — | | | 306 | | | — |
| | — | | | 735 | | | — | | | — |
| | 32,072 | | | 84,751 | | | 12,431 | | | 6,539 |
| | 3,176 | | | 3,953 | | | 398 | | | 2,225 |
| | 1,180 | | | 3,356 | | | 1,685 | | | 1,571 |
| | 74 | | | 243 | | | 37 | | | 104 |
| | 1,793 | | | 3,359 | | | 2,574 | | | 7 |
| | — | | | — | | | — | | | — |
| | — | | | 92 | | | 525 | | | 1,863 |
| | — | | | — | | | — | | | — |
| | — | | | 4,025 | | | 935 | | | — |
| | — | | | 10,763 | | | 3,589 | | | 476 |
| | — | | | — | | | — | | | 444 |
| | — | | | — | | | — | | | — |
| | — | | | — | | | — | | | — |
| | 367,003 | | | 261,717 | | | 98,830 | | | 128,853 |
| | — | | | — | | | — | | | — |
| | — | | | — | | | — | | | — |
| | | | | | | | | | | |
| | 405,298 | | | 372,994 | | | 121,310 | | | 142,082 |
| | | | | | | | | | | |
| | | | | | | | | | |
| $ | 1,632,977 | | $ | 4,634,346 | | $ | 1,857,579 | | $ | 1,389,471 |
| | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Assets and Liabilities | | 239 |
Russell Investment Company
Russell Funds
Statements of Assets and Liabilities, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Amounts in thousands | | Russell U.S. Core
Equity Fund | | | Russell U.S.
Quantitative
Equity Fund | | | Russell U.S.
Growth Fund | | | Russell U.S. Value
Fund | |
| | | | | | | | | | | | | | | | |
| Net Assets Consist of: | | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income | | $ | 905 | | | $ | 2,424 | | | $ | (24 | ) | | $ | (51 | ) |
Accumulated net realized gain (loss) | | | (1,364,386 | ) | | | (1,311,442 | ) | | | (40,210 | ) | | | (129,998 | ) |
Unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Investments (Russell non-U.S. funds - net of deferred tax liability for foreign capital gains taxes) | | | 731,819 | | | | 477,109 | | | | 16,908 | | | | 24,246 | |
Futures contracts | | | 4,732 | | | | 427 | | | | 10 | | | | 48 | |
Options written | | | — | | | | — | | | | — | | | | — | |
Credit default swaps | | | — | | | | — | | | | — | | | | — | |
Index swaps contracts | | | — | | | | — | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | — | | | | — | |
Securities sold short | | | — | | | | (65,827 | ) | | | — | | | | — | |
Investments matured | | | — | | | | — | | | | — | | | | — | |
Foreign currency-related transactions | | | — | | | | — | | | | — | | | | — | |
Other investments | | | — | | | | — | | | | — | | | | — | |
Shares of beneficial interest | | | 1,857 | | | | 1,464 | | | | 128 | | | | 204 | |
Additional paid-in capital | | | 5,477,513 | | | | 4,882,691 | | | | 119,714 | | | | 264,736 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 4,852,440 | | | $ | 3,986,846 | | | $ | 96,526 | | | $ | 159,185 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share: | | | | | | | | | | | | | | | | |
Net asset value per share: Class A******** | | $ | 26.17 | | | $ | 27.21 | | | $ | — | | | $ | — | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%*********): Class A | | $ | 27.77 | | | $ | 28.87 | | | $ | — | | | $ | — | |
Class A—Net assets | | $ | 24,557,453 | | | $ | 18,646,301 | | | $ | — | | | $ | — | |
Class A—Shares outstanding ($.01 par value) | | | 938,236 | | | | 685,277 | | | | — | | | | — | |
Net asset value per share: Class C******** | | $ | 26.06 | | | $ | 27.14 | | | $ | 6.82 | | | $ | 7.62 | |
Class C—Net assets | | $ | 85,890,405 | | | $ | 71,888,537 | | | $ | 6,140,406 | | | $ | 11,662,207 | |
Class C—Shares outstanding ($.01 par value) | | | 3,295,857 | | | | 2,649,163 | | | | 900,212 | | | | 1,530,321 | |
Net asset value per share: Class E******** | | $ | 26.14 | | | $ | 27.19 | | | $ | 7.39 | | | $ | 7.82 | |
Class E—Net assets | | $ | 95,870,351 | | | $ | 76,161,137 | | | $ | 5,627,227 | | | $ | 4,422,481 | |
Class E—Shares outstanding ($.01 par value) | | | 3,667,046 | | | | 2,800,970 | | | | 761,783 | | | | 565,420 | |
Net asset value per share: Class I******** | | $ | 26.14 | | | $ | 27.22 | | | $ | 7.62 | | | $ | 7.84 | |
Class I—Net assets | | $ | 1,040,464,695 | | | $ | 623,741,965 | | | $ | 48,173,008 | | | $ | 49,527,255 | |
Class I—Shares outstanding ($.01 par value) | | | 39,805,434 | | | | 22,916,669 | | | | 6,323,899 | | | | 6,313,717 | |
Net asset value per share: Class S******** | | $ | 26.14 | | | $ | 27.23 | | | $ | 7.55 | | | $ | 7.82 | |
Class S—Net assets | | $ | 1,582,712,390 | | | $ | 1,324,421,273 | | | $ | 36,585,631 | | | $ | 93,573,215 | |
Class S—Shares outstanding ($.01 par value) | | | 60,556,229 | | | | 48,633,719 | | | | 4,844,563 | | | | 11,959,151 | |
Net asset value per share: Class Y******** | | $ | 26.12 | | | $ | 27.22 | | | $ | — | | | $ | — | |
Class Y—Net assets | | $ | 2,022,944,718 | | | $ | 1,871,987,126 | | | $ | — | | | $ | — | |
Class Y—Shares outstanding ($.01 par value) | | | 77,446,663 | | | | 68,763,650 | | | | — | | | | — | |
Amounts in thousands | | | | | | | | | | | | | | | | |
* Foreign currency holdings - cost | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
** Premiums received on options written | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
*** Securities on loan included in investments | | $ | 241,276 | | | $ | — | | | $ | 5,058 | | | $ | 25,680 | |
**** Credit default swap contracts - premiums paid (received) | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
***** Interest rate swap contracts - premiums paid (received) | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
****** Investments matured - cost | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
******* Proceeds on securities sold short | | $ | — | | | $ | 330,978 | | | $ | — | | | $ | — | |
******** Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. | | | | | | | | | | | | | | | | |
********* Russell Strategic Bond and Short Duration Bond Fund’s maximum sale charge is 3.75%. | | | | | | | | | | | | | | | | |
********** Russell Money Market Fund investments at amortized cost which approximates value. | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 240 | | Statements of Assets and Liabilities |
| | | | | | | | | | | | | | |
Russell U.S. Small &
Mid Cap Fund | | | Russell International
Developed Markets
Fund | | | Russell Global
Equity Fund | | | Russell Emerging
Markets Fund | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| $ | 1,518 | | | $ | (6,226 | ) | | $ | (926 | ) | | $ | (31,388 | ) |
| | (581,251 | ) | | | (1,354,464 | ) | | | (360,368 | ) | | | (76,705 | ) |
| | | | | | | | | | | | | | |
| 316,425 | | | | 331,754 | | | | 175,254 | | | | 379,518 | |
| | 2,289 | | | | (6,368 | ) | | | 1,124 | | | | (26 | ) |
| | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (444 | ) |
| | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | |
| | — | | | | (12,140 | ) | | | (1,186 | ) | | | 1,215 | |
| | — | | | | — | �� | | | — | | | | (28 | ) |
| | 793 | | | | 1,573 | | | | 2,294 | | | | 754 | |
| | 1,893,203 | | | | 5,680,217 | | | | 2,041,387 | | | | 1,116,575 | |
| | | | | | | | | | | | | | | |
| $ | 1,632,977 | | | $ | 4,634,346 | | | $ | 1,857,579 | | | $ | 1,389,471 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| $ | 20.48 | | | $ | 29.42 | | | $ | 8.07 | | | $ | 18.38 | |
$ | 21.73 | | | $ | 31.21 | | | $ | 8.56 | | | $ | 19.50 | |
| $ | 12,667,968 | | | $ | 22,168,568 | | | $ | 6,859,986 | | | $ | 16,233,656 | |
| | 618,659 | | | | 753,452 | | | | 849,854 | | | | 883,398 | |
| $ | 20.33 | | | $ | 29.26 | | | $ | 8.07 | | | $ | 17.39 | |
| $ | 35,998,733 | | | $ | 74,047,907 | | | $ | 11,463,254 | | | $ | 39,814,378 | |
| | 1,770,962 | | | | 2,530,864 | | | | 1,420,878 | | | | 2,290,054 | |
| $ | 20.52 | | | $ | 29.45 | | | $ | 8.08 | | | $ | 18.41 | |
| $ | 37,840,897 | | | $ | 92,014,097 | | | $ | 31,612,270 | | | $ | 33,979,052 | |
| | 1,843,793 | | | | 3,124,306 | | | | 3,910,226 | | | | 1,845,669 | |
| $ | 20.65 | | | $ | 29.46 | | | $ | — | | | $ | — | |
| $ | 251,144,652 | | | $ | 925,163,191 | | | $ | — | | | $ | — | |
| | 12,161,556 | | | | 31,404,341 | | | | — | | | | — | |
| $ | 20.59 | | | $ | 29.43 | | | $ | 8.10 | | | $ | 18.47 | |
| $ | 663,354,501 | | | $ | 1,526,882,829 | | | $ | 769,971,409 | | | $ | 903,633,532 | |
| | 32,212,595 | | | | 51,874,429 | | | | 95,074,102 | | | | 48,932,350 | |
| $ | 20.59 | | | $ | 29.48 | | | $ | 8.10 | | | $ | 18.49 | |
| $ | 631,970,413 | | | $ | 1,994,069,537 | | | $ | 1,037,671,979 | | | $ | 395,810,121 | |
| | 30,695,147 | | | | 67,649,533 | | | | 128,104,611 | | | | 21,407,663 | |
| | | | | | | | | | | | | | |
| $ | — | | | $ | 12,415 | | | $ | 3,849 | | | $ | 9,288 | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | |
| $ | 349,586 | | | $ | 262,690 | | | $ | 99,562 | | | $ | 122,744 | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Assets and Liabilities | | 241 |
Russell Investment Company
Russell Funds
Statements of Assets and Liabilities, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | |
| Amounts in thousands | | Russell Tax-
Managed U.S.
Large Cap Fund | | Russell
Tax-Managed U.S. Mid
& Small Cap Fund | | Russell Strategic
Bond Fund | | Russell
Investment Grade
Bond Fund |
| | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Investments, at identified cost | | $ | 337,798 | | $ | 193,451 | | $ | 8,436,099 | | $ | 1,907,674 |
Investments, at market*** | | | 431,043 | | | 222,353 | | | 8,310,370 | | | 1,901,743 |
Cash | | | — | | | — | | | 1,996 | | | 25 |
Cash (restricted) | | | 1,500 | | | 700 | | | 29,490 | | | 4,079 |
Foreign currency holdings* | | | — | | | — | | | 3,263 | | | 530 |
Unrealized appreciation on foreign currency exchange contracts | | | — | | | — | | | 5,575 | | | 272 |
Receivables: | | | | | | | | | | | | |
Dividends and interest | | | 224 | | | 22 | | | 52,270 | | | 9,756 |
Dividends from affiliated Russell U.S. Cash Management Fund | | | 1 | | | — | | | 35 | | | 13 |
Investments sold | | | 434 | | | 472 | | | 659,988 | | | 82,398 |
Fund shares sold | | | 705 | | | 141 | | | 16,648 | | | 3,593 |
Foreign taxes recoverable | | | — | | | — | | | — | | | — |
From affiliates | | | — | | | — | | | — | | | — |
Investments matured****** | | | — | | | — | | | 1,903 | | | 562 |
Daily variation margin on futures contracts | | | — | | | — | | | 23,818 | | | 840 |
Other receivable | | | — | | | — | | | 2,828 | | | — |
Prepaid expenses | | | 14 | | | 1 | | | 106 | | | 34 |
Interest rate swap contracts, at market value***** | | | — | | | — | | | 20,913 | | | 1,495 |
Credit default swap contracts, at market value**** | | | — | | | — | | | 9,976 | | | 1,740 |
| | | | | | | | | | | | |
Total assets | | | 433,921 | | | 223,689 | | | 9,139,179 | | | 2,007,080 |
| | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | |
Due to Custodian | | | — | | | — | | | — | | | — |
Due to Broker | | | — | �� | | — | | | 29,311 | | | 1,550 |
Investments purchased | | | 936 | | | 530 | | | 1,198,447 | | | 288,083 |
Fund shares redeemed | | | 267 | | | 99 | | | 6,492 | | | 1,745 |
Accrued fees to affiliates | | | 288 | | | 150 | | | 4,253 | | | 539 |
Other accrued expenses | | | 52 | | | 34 | | | 564 | | | 129 |
Daily variation margin on futures contracts | | | 254 | | | 181 | | | 19,300 | | | 1 |
Dividends for securities sold short | | | — | | | — | | | — | | | — |
Deferred tax liability | | | — | | | — | | | — | | | — |
Income distribution | | | — | | | — | | | 2 | | | — |
Other payable | | | — | | | — | | | 23,099 | | | 3,661 |
Unrealized depreciation on foreign currency exchange contracts | | | — | | | — | | | 3,594 | | | 64 |
Unrealized depreciation on index swaps | | | — | | | — | | | — | | | — |
Options written, at market value** | | | — | | | — | | | 2,303 | | | 789 |
Securities sold short at market value****** | | | — | | | — | | | — | | | — |
Payable upon return of securities loaned | | | 42,713 | | | 67,994 | | | 250,084 | | | 67,760 |
Interest rate swap contracts, at market value***** | | | — | | | — | | | 6,869 | | | 568 |
Credit default swap contracts, at market value**** | | | — | | | — | | | 26,017 | | | 4,211 |
| | | | | | | | | | | | |
Total liabilities | | | 44,510 | | | 68,988 | | | 1,570,335 | | | 369,100 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Net Assets | | $ | 389,411 | | $ | 154,701 | | $ | 7,568,844 | | $ | 1,637,980 |
| | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 242 | | Statements of Assets and Liabilities |
| | | | | | | | | | | |
Russell Short
Duration
Bond Fund | | Russell Tax Exempt
Bond Fund | | Russell Real
Estate Securities
Fund | | Russell Money
Market Fund | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| $ | 721,495 | | $ | 504,255 | | $ | 1,950,996 | | $ | 463,803 | |
| | 733,432 | | | 521,968 | | | 2,555,050 | | | 463,803 | ********** |
| | — | | | 49 | | | — | | | — | |
| | 176 | | | — | | | — | | | — | |
| | 490 | | | — | | | 151 | | | — | |
| | 239 | | | — | | | — | | | — | |
| | | | | | | | | | | |
| | 3,487 | | | 6,936 | | | 2,045 | | | 57 | |
|
3 | | | 1 | | | 4 | | | — | |
| | 35,970 | | | — | | | 18,791 | | | 1,276 | |
| | 3,942 | | | 1,621 | | | 3,903 | | | — | |
| | — | | | — | | | — | | | — | |
| | — | | | — | | | — | | | 10 | |
| | — | | | — | | | — | | | — | |
| | 78 | | | — | | | — | | | — | |
| | 17 | | | — | | | — | | | — | |
| | 72 | | | 38 | | | 109 | | | 32 | |
| | 852 | | | — | | | — | | | — | |
| | 634 | | | — | | | — | | | — | |
| | | | | | | | | | | | |
| | 779,392 | | | 530,613 | | | 2,580,053 | | | 465,178 | |
| | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | 82 | | | — | | | — | | | — | |
| | 1,476 | | | — | | | — | | | — | |
| | 28,091 | | | 6,289 | | | 20,998 | | | — | |
| | 2,229 | | | 191 | | | 5,549 | | | — | |
| | 422 | | | 219 | | | 1,688 | | | 80 | |
| | 89 | | | 60 | | | 85 | | | 592 | |
| | 130 | | | — | | | — | | | — | |
| | — | | | — | | | — | | | — | |
| | — | | | — | | | — | | | — | |
| | — | | | — | | | — | | | 23 | |
| | — | | | — | | | — | | | — | |
| | 80 | | | — | | | 3 | | | — | |
| | — | | | — | | | — | | | — | |
| | 451 | | | — | | | — | | | — | |
| | — | | | — | | | — | | | — | |
| | — | | | — | | | 473,038 | | | — | |
| | 86 | | | — | | | — | | | — | |
| | 17 | | | — | | | — | | | — | |
| | | | | | | | | | | | |
| | 33,153 | | | 6,759 | | | 501,361 | | | 695 | |
| | | | | | | | | | | | |
| | | | | | | | | | | |
| $ | 746,239 | | $ | 523,854 | | $ | 2,078,692 | | $ | 464,483 | |
| | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Assets and Liabilities | | 243 |
Russell Investment Company
Russell Funds
Statements of Assets and Liabilities, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Amounts in thousands | | Russell Tax-
Managed U.S.
Large Cap Fund | | | Russell
Tax-Managed U.S. Mid
& Small Cap Fund | | | Russell Strategic
Bond Fund | | | Russell
Investment Grade
Bond Fund | |
| | | | | | | | | | | | | | | | |
| Net Assets Consist of: | | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income | | $ | 164 | | | $ | (123 | ) | | $ | 15,134 | | | $ | 1,771 | |
Accumulated net realized gain (loss) | | | (138,841 | ) | | | (25,597 | ) | | | 31,960 | | | | 7,911 | |
Unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Investments (Russell non-U.S. funds - net of deferred tax liability for foreign capital gains taxes) | | | 93,245 | | | | 28,902 | | | | (125,729 | ) | | | (5,931 | ) |
Futures contracts | | | 358 | | | | 336 | | | | 15,903 | | | | 2,343 | |
Options written | | | — | | | | — | | | | 1,829 | | | | 710 | |
Credit default swaps | | | — | | | | — | | | | 3,569 | | | | (380 | ) |
Index swaps contracts | | | — | | | | — | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | 7,674 | | | | 57 | |
Securities sold short | | | — | | | | — | | | | — | | | | — | |
Investments matured | | | — | | | | — | | | | (6,898 | ) | | | (2,038 | ) |
Foreign currency-related transactions | | | — | | | | — | | | | 2,373 | | | | 208 | |
Other investments | | | — | | | | — | | | | (11,312 | ) | | | — | |
Shares of beneficial interest | | | 215 | | | | 117 | | | | 7,032 | | | | 750 | |
Additional paid-in capital | | | 434,270 | | | | 151,066 | | | | 7,627,309 | | | | 1,632,579 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 389,411 | | | $ | 154,701 | | | $ | 7,568,844 | | | $ | 1,637,980 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share: | | | | | | | | | | | | | | | | |
Net asset value per share: Class A******* | | $ | — | | | $ | — | | | $ | 10.81 | | | $ | — | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%*********): Class A | | $ | — | | | $ | — | | | $ | 11.23 | | | $ | — | |
Class A—Net assets | | $ | — | | | $ | — | | | $ | 47,826,401 | | | $ | — | |
Class A—Shares outstanding ($.01 par value) | | | — | | | | — | | | | 4,422,824 | | | | — | |
Net asset value per share: Class C******** | | $ | 17.62 | | | $ | 12.06 | | | $ | 10.82 | | | $ | 21.76 | |
Class C—Net assets | | $ | 13,612,679 | | | $ | 8,321,412 | | | $ | 110,726,026 | | | $ | 37,586,461 | |
Class C—Shares outstanding ($.01 par value) | | | 772,408 | | | | 690,044 | | | | 10,237,422 | | | | 1,727,329 | |
Net asset value per share: Class E******** | | $ | 18.05 | | | $ | 13.06 | | | $ | 10.75 | | | $ | 21.84 | |
Class E—Net assets | | $ | 17,590,214 | | | $ | 3,611,251 | | | $ | 149,133,896 | | | $ | 56,467,020 | |
Class E—Shares outstanding ($.01 par value) | | | 974,505 | | | | 276,618 | | | | 13,872,317 | | | | 2,585,901 | |
Net asset value per share: Class I******** | | $ | — | | | $ | — | | | $ | 10.72 | | | $ | 21.84 | |
Class I—Net assets | | $ | — | | | $ | — | | | $ | 1,377,244,948 | | | $ | 405,794,437 | |
Class I—Shares outstanding ($.01 par value) | | | — | | | | — | | | | 128,485,244 | | | | 18,578,215 | |
Net asset value per share: Class S******** | | $ | 18.11 | | | $ | 13.31 | | | $ | 10.84 | | | $ | 21.83 | |
Class S—Net assets | | $ | 358,207,773 | | | $ | 142,768,594 | | | $ | 2,404,514,934 | | | $ | 357,828,640 | |
Class S—Shares outstanding ($.01 par value) | | | 19,777,187 | | | | 10,722,922 | | | | 221,885,326 | | | | 16,392,156 | |
Net asset value per share: Class Y******** | | $ | — | | | $ | — | | | $ | 10.73 | | | $ | 21.85 | |
Class Y—Net assets | | $ | — | | | $ | — | | | $ | 3,479,397,493 | | | $ | 780,303,827 | |
Class Y—Shares outstanding ($.01 par value) | | | — | | | | — | | | | 324,300,830 | | | | 35,705,079 | |
Amounts in thousands | | | | | | | | | | | | | | | | |
* Foreign currency holdings - cost | | $ | — | | | $ | — | | | $ | 3,276 | | | $ | 527 | |
** Premiums received on options written | | $ | — | | | $ | — | | | $ | 4,132 | | | $ | 1,499 | |
*** Securities on loan included in investments | | $ | 43,314 | | | $ | 64,798 | | | $ | 356,080 | | | $ | 126,027 | |
**** Credit default swap contracts - premiums paid (received) | | $ | — | | | $ | — | | | $ | (19,610 | ) | | $ | (2,091 | ) |
***** Interest rate swap contracts - premiums paid (received) | | $ | — | | | $ | — | | | $ | 6,370 | | | $ | 870 | |
****** Investments matured - cost | | $ | — | | | $ | — | | | $ | — | | | $ | 2,600 | |
******* Proceeds on securities sold short | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
******** Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. | | | | | | | | | | | | | | | | |
********* Russell Strategic Bond and Short Duration Bond Fund’s maximum sale charge is 3.75%. | | | | | | | | | | | | | | | | |
********** Russell Money Market Fund investments at amortized cost which approximates value. | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 244 | | Statements of Assets and Liabilities |
| | | | | | | | | | | | | |
Russell Short
Duration
Bond Fund | | | Russell Tax Exempt
Bond Fund | | | Russell Real Estate
Securities Fund | | | Russell Money
Market Fund |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| $ | 623 | | | $ | 1,377 | | | $ | 10,677 | | | $ | 25 |
| | (15,256 | ) | | | (5,208 | ) | | | (466,564 | ) | | | 688 |
| | | | | | | | | | | | | |
| 11,937 | | | | 17,713 | | | | 604,054 | | | | — |
| | 483 | | | | — | | | | — | | | | — |
| | 488 | | | | — | | | | — | | | | — |
| | 347 | | | | — | | | | — | | | | — |
| | — | | | | — | | | | — | | | | — |
| | 662 | | | | — | | | | — | | | | — |
| | — | | | | — | | | | — | | | | — |
| | — | | | | — | | | | — | | | | — |
| | 162 | | | | — | | | | (10 | ) | | | — |
| | (68 | ) | | | — | | | | — | | | | — |
| | 389 | | | | 236 | | | | 602 | | | | 4,639 |
| | 746,472 | | | | 509,736 | | | | 1,929,933 | | | | 459,131 |
| | | | | | | | | | | | | | |
| $ | 746,239 | | | $ | 523,854 | | | $ | 2,078,692 | | | $ | 464,483 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| $ | 19.16 | | | $ | — | | | $ | 34.09 | | | $ | 1.00 |
$ | 19.91 | | | $ | — | | | $ | 36.17 | | | $ | 1.00 |
| $ | 21,607,832 | | | $ | — | | | $ | 23,066,898 | | | $ | 106,623,224 |
| | 1,127,552 | | | | — | | | | 676,571 | | | | 106,390,453 |
| $ | 19.10 | | | $ | 22.15 | | | $ | 33.40 | | | $ | — |
| $ | 80,232,316 | | | $ | 27,720,427 | | | $ | 55,489,079 | | | $ | — |
| | 4,201,628 | | | | 1,251,304 | | | | 1,661,418 | | | | — |
| $ | 19.20 | | | $ | 22.23 | | | $ | 34.11 | | | $ | — |
| $ | 22,574,975 | | | $ | 29,125,088 | | | $ | 44,520,740 | | | $ | — |
| | 1,175,968 | | | | 1,310,353 | | | | 1,305,399 | | | | — |
| $ | — | | | $ | — | | | $ | — | | | $ | — |
| $ | — | | | $ | — | | | $ | — | | | $ | — |
| | — | | | | — | | | | — | | | | — |
| $ | 19.17 | | | $ | 22.19 | | | $ | 34.59 | | | $ | 1.00 |
| $ | 437,139,864 | | | $ | 467,008,209 | | | $ | 1,324,504,685 | | | $ | 357,859,923 |
| | 22,807,645 | | | | 21,042,246 | | | | 38,289,570 | | | | 357,472,094 |
| $ | 19.17 | | | $ | — | | | $ | 34.59 | | | $ | — |
| $ | 184,683,811 | | | $ | — | | | $ | 631,110,578 | | | $ | — |
| | 9,634,817 | | | | — | | | | 18,244,799 | | | | — |
| | | | | | | | | | | | | |
| $ | 488 | | | $ | — | | | $ | 151 | | | $ | — |
| $ | 939 | | | $ | — | | | $ | — | | | $ | — |
| $ | — | | | $ | — | | | $ | 456,602 | | | $ | — |
| $ | 270 | | | $ | — | | | $ | — | | | $ | — |
| $ | 104 | | | $ | — | | | $ | — | | | $ | — |
| $ | — | | | $ | — | | | $ | — | | | $ | — |
| $ | — | | | $ | — | | | $ | — | | | $ | — |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Assets and Liabilities | | 245 |
Russell Investment Company
Russell Funds
Statements of Operations — For the Periods Ended April 30, 2010 (Unaudited)
| | | | | | | | |
| Amounts in thousands | | Russell U.S.
Core Equity
Fund | | | Russell U.S.
Quantitative
Equity Fund | |
| | | | | | | | |
Investment Income | | | | | | | | |
Dividends | | $ | 36,173 | | | $ | 46,216 | |
Dividends from affiliated Russell money market funds | | | 57 | | | | 29 | |
Interest | | | — | | | | — | |
Securities lending income | | | 180 | | | | — | |
Less foreign taxes withheld | | | — | | | | — | |
| | | | | | | | |
Total investment income | | | 36,410 | | | | 46,245 | |
| | | | | | | | |
| | |
Expenses | | | | | | | | |
Advisory fees | | | 13,032 | | | | 11,685 | |
Administrative fees | | | 1,185 | | | | 1,062 | |
Custodian fees | | | 350 | | | | 341 | |
Distribution fees - Class A | | | 28 | | | | 23 | |
Distribution fees - Class C | | | 317 | | | | 273 | |
Transfer agent fees - Class A | | | 20 | | | | 17 | |
Transfer agent fees - Class C | | | 76 | | | | 66 | |
Transfer agent fees - Class E | | | 89 | | | | 73 | |
Transfer agent fees - Class I | | | 460 | | | | 354 | |
Transfer agent fees - Class S | | | 1,373 | | | | 1,240 | |
Transfer agent fees - Class Y | | | 46 | | | | 44 | |
Professional fees | | | 127 | | | | 116 | |
Registration fees | | | 84 | | | | 82 | |
Shareholder servicing fees - Class C | | | 106 | | | | 91 | |
Shareholder servicing fees - Class E | | | 123 | | | | 101 | |
Trustees’ fees | | | 50 | | | | 48 | |
Printing fees | | | 114 | | | | 104 | |
Dividends paid on securities sold short | | | — | | | | 2,126 | |
Interest expense paid on securities sold short | | | — | | | | 1,895 | |
Miscellaneous | | | 37 | | | | 36 | |
| | | | | | | | |
Expenses before reductions | | | 17,617 | | | | 19,777 | |
Expense reductions | | | (204 | ) | | | (170 | ) |
| | | | | | | | |
Net expenses | | | 17,413 | | | | 19,607 | |
| | | | | | | | |
Net investment income (loss) | | | 18,997 | | | | 26,638 | |
| | | | | | | | |
| | |
Net Realized and Unrealized Gain (Loss) | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investments (Russell non-U.S. funds - net of deferred tax liability for foreign capital gains taxes) | | | 150,150 | | | | 227,035 | |
Futures contracts | | | 35,326 | | | | 28,513 | |
Options written | | | — | | | | — | |
Credit default swap contracts | | | — | | | | — | |
Index swap contracts | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | |
Securities sold short | | | — | | | | (65,268 | ) |
Foreign currency-related transactions | | | 22 | | | | — | |
| | | | | | | | |
Net realized gain (loss) | | | 185,498 | | | | 190,280 | |
| | | | | | | | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | |
Investments (Russell non-U.S. funds - net of deferred tax liability for foreign capital gains taxes) | | | 458,613 | | | | 399,579 | |
Futures contracts | | | 4,455 | | | | 925 | |
Options written | | | — | | | | — | |
Credit default swap contracts | | | — | | | | — | |
Index swap contracts | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | |
Securities sold short | | | — | | | | (49,020 | ) |
Investments matured | | | — | | | | — | |
Foreign currency-related transactions | | | — | | | | — | |
Other investments | | | — | | | | — | |
| | | | | | | | |
Net change in unrealized appreciation (depreciation) | | | 463,068 | | | | 351,484 | |
| | | | | | | | |
Net realized and unrealized gain (loss) | | | 648,566 | | | | 541,764 | |
| | | | | | | | |
| Net Increase (Decrease) in Net Assets from Operations | | $ | 667,563 | | | $ | 568,402 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 246 | | Statements of Operations |
| | | | | | | | | | | | | | | | | | | | | |
Russell U.S.
Growth Fund | | | Russell U.S. Value
Fund | | Russell U.S. Small
& Mid Cap Fund | | | Russell
International Developed
Markets Fund | | | Russell Global
Equity Fund | | | Russell Emerging
Markets Fund | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| $ | 474 | | | $ | 1,245 | | $ | 9,657 | | | $ | 51,155 | | | $ | 11,189 | | | $ | 13,514 | |
| | 1 | | | | 1 | | | 13 | | | | 72 | | | | 19 | | | | 10 | |
| | — | | | | — | | | — | | | | 3 | | | | — | | | | 21 | |
| | 5 | | | | 8 | | | 758 | | | | 685 | | | | 79 | | | | 239 | |
| | — | | | | — | | | — | | | | (4,240 | ) | | | (648 | ) | | | (1,334 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 480 | | | | 1,254 | | | 10,428 | | | | 47,675 | | | | 10,639 | | | | 12,450 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | 380 | | | | 539 | | | 5,252 | | | | 15,541 | | | | 6,057 | | | | 7,628 | |
| | 24 | | | | 38 | | | 375 | | | | 1,110 | | | | 319 | | | | 332 | |
| | 36 | | | | 39 | | | 152 | | | | 829 | | | | 219 | | | | 637 | |
| | — | | | | — | | | 13 | | | | 26 | | | | 7 | | | | 17 | |
| | 23 | | | | 42 | | | 124 | | | | 288 | | | | 36 | | | | 139 | |
| | — | | | | — | | | 10 | | | | 19 | | | | 5 | | | | 12 | |
| | 5 | | | | 10 | | | 30 | | | | 69 | | | | 9 | | | | 33 | |
| | 5 | | | | 5 | | | 33 | | | | 82 | | | | 17 | | | | 30 | |
| | 24 | | | | 23 | | | 115 | | | | 461 | | | | — | | | | — | |
| | 31 | | | | 82 | | | 536 | | | | 1,290 | | | | 494 | | | | 779 | |
| | — | | | | — | | | 13 | | | | 42 | | | | 16 | | | | 8 | |
| | 22 | | | | 29 | | | 65 | | | | 151 | | | | 50 | | | | 70 | |
| | 23 | | | | 25 | | | 54 | | | | 83 | | | | 43 | | | | 59 | |
| | 8 | | | | 14 | | | 41 | | | | 96 | | | | 12 | | | | 46 | |
| | 7 | | | | 6 | | | 45 | | | | 113 | | | | 24 | | | | 42 | |
| | 1 | | | | 4 | | | 16 | | | | 47 | | | | 10 | | | | 13 | |
| | 4 | | | | 17 | | | 72 | | | | 127 | | | | 56 | | | | 89 | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | 4 | | | | 4 | | | 13 | | | | 124 | | | | 11 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 597 | | | | 877 | | | 6,959 | | | | 20,498 | | | | 7,385 | | | | 9,947 | |
| | (94 | ) | | | — | | | (22 | ) | | | (206 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 503 | | | | 877 | | | 6,937 | | | | 20,292 | | | | 7,385 | | | | 9,947 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (23 | ) | | | 377 | | | 3,491 | | | | 27,383 | | | | 3,254 | | | | 2,503 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | 5,667 | | | | 9,335 | | | 94,480 | | | | 52,403 | | | | 43,324 | | | | 73,142 | |
| | 486 | | | | 616 | | | 10,098 | | | | 18,508 | | | | 8,692 | | | | (6 | ) |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | 417 | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | (4 | ) | | | 10,550 | | | | 381 | | | | 1,555 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 6,153 | | | | 9,951 | | | 104,574 | | | | 81,461 | | | | 52,397 | | | | 75,108 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | 7,179 | | | | 16,570 | | | 236,859 | | | | 117,845 | | | | 108,064 | | | | 99,513 | |
| | 49 | | | | 227 | | | 5,550 | | | | 4,052 | | | | 2,391 | | | | 1,189 | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | 139 | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | — | | | | (25,053 | ) | | | (1,791 | ) | | | (119 | ) |
| | — | | | | — | | | — | | | | — | | | | — | | | | (35 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 7,228 | | | | 16,797 | | | 242,409 | | | | 96,844 | | | | 108,664 | | | | 100,687 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 13,381 | | | | 26,748 | | | 346,983 | | | | 178,305 | | | | 161,061 | | | | 175,795 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 13,358 | | | $ | 27,125 | | $ | 350,474 | | | $ | 205,688 | | | $ | 164,315 | | | $ | 178,298 | |
| | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Operations | | 247 |
Russell Investment Company
Russell Funds
Statements of Operations, continued — For the Periods Ended April 30, 2010 (Unaudited)
| | | | | | | | |
| Amounts in thousands | | Russell Tax-
Managed U.S.
Large Cap Fund | | | Russell Tax-
Managed U.S.
Mid & Small Cap
Fund | |
| | | | | | | | |
Investment Income | | | | | | | | |
Dividends | | $ | 2,495 | | | $ | 839 | |
Dividends from affiliated Russell money market funds | | | — | | | | 2 | |
Interest | | | — | | | | — | |
Securities lending income | | | 13 | | | | 67 | |
Less foreign taxes withheld | | | — | | | | — | |
| | | | | | | | |
Total investment income | | | 2,508 | | | | 908 | |
| | | | | | | | |
| | |
Expenses | | | | | | | | |
Advisory fees | | | 1,271 | | | | 693 | |
Administrative fees | | | 91 | | | | 35 | |
Custodian fees | | | 34 | | | | 34 | |
Distribution fees - Class A | | | — | | | | — | |
Distribution fees - Class C | | | 49 | | | | 29 | |
Transfer agent fees - Class A | | | — | | | | — | |
Transfer agent fees - Class C | | | 12 | | | | 7 | |
Transfer agent fees - Class E | | | 14 | | | | 3 | |
Transfer agent fees - Class I | | | — | | | | — | |
Transfer agent fees - Class S | | | 301 | | | | 117 | |
Transfer agent fees - Class Y | | | — | | | | — | |
Professional fees | | | 25 | | | | 23 | |
Registration fees | | | 35 | | | | 23 | |
Shareholder servicing fees - Class C | | | 16 | | | | 10 | |
Shareholder servicing fees - Class E | | | 20 | | | | 4 | |
Trustees’ fees | | | 4 | | | | 2 | |
Printing fees | | | 7 | | | | 5 | |
Dividends paid on securities sold short | | | — | | | | — | |
Interest expense paid on securities sold short | | | — | | | | — | |
Miscellaneous | | | 4 | | | | 3 | |
| | | | | | | | |
Expenses before reductions | | | 1,883 | | | | 988 | |
Expense reductions | | | (145 | ) | | | (75 | ) |
| | | | | | | | |
Net expenses | | | 1,738 | | | | 913 | |
| | | | | | | | |
Net investment income (loss) | | | 770 | | | | (5 | ) |
| | | | | | | | |
| | |
Net Realized and Unrealized Gain (Loss) | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investments (Russell non-U.S. funds - net of deferred tax liability for foreign capital gains taxes) | | | 6,194 | | | | 9,205 | |
Futures contracts | | | 1,728 | | | | 1,154 | |
Options written | | | — | | | | — | |
Credit default swap contracts | | | — | | | | — | |
Index swap contracts | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | |
Securities sold short | | | — | | | | — | |
Foreign currency-related transactions | | | — | | | | — | |
| | | | | | | | |
Net realized gain (loss) | | | 7,922 | | | | 10,359 | |
| | | | | | | | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | |
Investments (Russell non-U.S. funds - net of deferred tax liability for foreign capital gains taxes) | | | 47,232 | | | | 21,763 | |
Futures contracts | | | 552 | | | | 675 | |
Options written | | | — | | | | — | |
Credit default swap contracts | | | — | | | | — | |
Index swap contracts | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | |
Securities sold short | | | — | | | | — | |
Investments matured | | | — | | | | — | |
Foreign currency-related transactions | | | — | | | | — | |
Other investments | | | — | | | | — | |
| | | | | | | | |
Net change in unrealized appreciation (depreciation) | | | 47,784 | | | | 22,438 | |
| | | | | | | | |
Net realized and unrealized gain (loss) | | | 55,706 | | | | 32,797 | |
| | | | | | | | |
| Net Increase (Decrease) in Net Assets from Operations | | $ | 56,476 | | | $ | 32,792 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 248 | | Statements of Operations |
| | | | | | | | | | | | | | | | | | | | | | |
Russell
Strategic Bond
Fund | | | Russell
Investment Grade
Bond Fund | | | Russell Short
Duration Bond
Fund | | | Russell Tax Exempt
Bond Fund | | |
Russell Real
Estate Securities
Fund | | | Russell Money
Market Fund | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,218 | | | $ | 116 | | | $ | 19 | | | $ | — | | | $ | 42,116 | | | $ | — | |
| | 117 | | | | 31 | | | | 9 | | | | 4 | | | | 13 | | | | — | |
| | 178,077 | | | | 20,321 | | | | 10,889 | | | | 9,479 | | | | — | | | | 564 | |
| | 128 | | | | 35 | | | | — | | | | — | | | | 320 | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 179,540 | | | | 20,503 | | | | 10,917 | | | | 9,483 | | | | 42,449 | | | | 564 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 18,532 | | | | 1,453 | | | | 1,496 | | | | 725 | | | | 7,370 | | | | 637 | |
| | 1,853 | | | | 291 | | | | 166 | | | | 121 | | | | 461 | | | | 159 | |
| | 762 | | | | 168 | | | | 118 | | | | 37 | | | | 194 | | | | 105 | |
| | 57 | | | | — | | | | 22 | | | | — | | | | 24 | | | | — | |
| | 410 | | | | 135 | | | | 239 | | | | 100 | | | | 185 | | | | — | |
| | 41 | | | | — | | | | 16 | | | | — | | | | 17 | | | | 119 | |
| | 98 | | | | 32 | | | | 57 | | | | 24 | | | | 44 | | | | — | |
| | 135 | | | | 42 | | | | 18 | | | | 24 | | | | 36 | | | | — | |
| | 658 | | | | 195 | | | | — | | | | — | | | | — | | | | — | |
| | 2,045 | | | | 177 | | | | 349 | | | | 387 | | | | 1,036 | | | | 452 | |
| | 77 | | | | 11 | | | | 4 | | | | — | | | | 13 | | | | — | |
| | 215 | | | | 69 | | | | 51 | | | | 35 | | | | 54 | | | | 288 | |
| | 112 | | | | 56 | | | | 76 | | | | 46 | | | | 55 | | | | 11 | |
| | 137 | | | | 45 | | | | 80 | | | | 33 | | | | 62 | | | | — | |
| | 187 | | | | 59 | | | | 25 | | | | 33 | | | | 50 | | | | — | |
| | 84 | | | | 12 | | | | 6 | | | | 5 | | | | 18 | | | | 24 | |
| | 122 | | | | 21 | | | | 11 | | | | 6 | | | | 105 | | | | 44 | |
| | 10 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 56 | | | | 24 | | | | 27 | | | | 5 | | | | 21 | | | | 32 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 25,591 | | | | 2,790 | | | | 2,761 | | | | 1,581 | | | | 9,745 | | | | 1,871 | |
| | (2,408 | ) | | | (92 | ) | | | (196 | ) | | | (193 | ) | | | — | | | | (1,308 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 23,183 | | | | 2,698 | | | | 2,565 | | | | 1,388 | | | | 9,745 | | | | 563 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 156,357 | | | | 17,805 | | | | 8,352 | | | | 8,095 | | | | 32,704 | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 35,014 | | | | 3,992 | | | | 4,046 | | | | 765 | | | | 97,547 | | | | 1,862 | |
| | 35,109 | | | | 4,869 | | | | 1,701 | | | | — | | | | — | | | | — | |
| | 7,319 | | | | 1,619 | | | | 297 | | | | — | | | | — | | | | — | |
| | (2,717 | ) | | | (48 | ) | | | 293 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 11,681 | | | | 1,263 | | | | 2,346 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 2,208 | | | | 696 | | | | 651 | | | | — | | | | (43 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 88,614 | | | | 12,391 | | | | 9,334 | | | | 765 | | | | 97,504 | | | | 1,862 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 254,835 | | | | 24,026 | | | | 5,346 | | | | 5,515 | | | | 373,708 | | | | — | |
| | (6,358 | ) | | | (1,354 | ) | | | (373 | ) | | | — | | | | — | | | | — | |
| | (865 | ) | | | 434 | | | | 381 | | | | — | | | | — | | | | — | |
| | 10,317 | | | | 479 | | | | 320 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (2,614 | ) | | | (720 | ) | | | (1,503 | ) | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 2,033 | | | | 153 | | | | — | | | | — | | | | — | | | | — | |
| | 3,152 | | | | 131 | | | | 283 | | | | — | | | | (5 | ) | | | — | |
| | (13,026 | ) | | | — | | | | (85 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 247,474 | | | | 23,149 | | | | 4,369 | | | | 5,515 | | | | 373,703 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 336,088 | | | | 35,540 | | | | 13,703 | | | | 6,280 | | | | 471,207 | | | | 1,862 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| $ | 492,445 | | | $ | 53,345 | | | $ | 22,055 | | | $ | 14,375 | | | $ | 503,911 | | | $ | 1,863 | |
| | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Operations | | 249 |
Russell Investment Company
Russell Funds
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | | Russell U.S. Core Equity
Fund | | | Russell U.S. Quantitative
Equity Fund | |
| Amounts in thousands | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 18,997 | | | $ | 47,467 | | | $ | 26,638 | | | $ | 58,422 | |
Net realized gain (loss) | | | 185,498 | | | | (990,798 | ) | | | 190,280 | | | | (1,131,684 | ) |
Net change in unrealized appreciation (depreciation) | | | 463,068 | | | | 1,352,743 | | | | 351,484 | | | | 1,400,691 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | 667,563 | | | | 409,412 | | | | 568,402 | | | | 327,429 | |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | | | | | |
Class A | | | (57 | ) | | | (172 | ) | | | (88 | ) | | | (173 | ) |
Class C | | | (6 | ) | | | (250 | ) | | | (104 | ) | | | (285 | ) |
Class E | | | (297 | ) | | | (936 | ) | | | (416 | ) | | | (1,020 | ) |
Class I | | | (3,875 | ) | | | (9,667 | ) | | | (4,675 | ) | | | (10,431 | ) |
Class S | | | (5,631 | ) | | | (14,148 | ) | | | (8,206 | ) | | | (16,261 | ) |
Class Y | | | (9,614 | ) | | | (24,766 | ) | | | (13,402 | ) | | | (27,712 | ) |
From net realized gain | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | — | | | | — | | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
Class Y | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net decrease in net assets from distributions | | | (19,480 | ) | | | (49,939 | ) | | | (26,891 | ) | | | (55,882 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Share Transactions | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (270,279 | ) | | | (130,854 | ) | | | (790,950 | ) | | | (162,007 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 377,804 | | | | 228,619 | | | | (249,439 | ) | | | 109,540 | |
| | | | |
Net Assets | | | | | | | | | | | | | | | | |
Beginning of period | | | 4,474,636 | | | | 4,246,017 | | | | 4,236,285 | | | | 4,126,745 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 4,852,440 | | | $ | 4,474,636 | | | $ | 3,986,846 | | | $ | 4,236,285 | |
| | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 905 | | | $ | 1,388 | | | $ | 2,424 | | | $ | 2,677 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 250 | | Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Growth
Fund | | | Russell U.S. Value
Fund | | | Russell U.S. Small &
Mid Cap Fund | |
Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | (23 | ) | | $ | 241 | | | $ | 377 | | | $ | 2,012 | | | $ | 3,491 | | | $ | 9,211 | |
| | 6,153 | | | | (21,892 | ) | | | 9,951 | | | | (56,191 | ) | | | 104,574 | | | | (385,664 | ) |
| | 7,228 | | | | 36,141 | | | | 16,797 | | | | 69,162 | | | | 242,409 | | | | 492,508 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 13,358 | | | | 14,490 | | | | 27,125 | | | | 14,983 | | | | 350,474 | | | | 116,055 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | (27 | ) | | | (30 | ) |
| | — | | | | — | | | | — | | | | (56 | ) | | | — | | | | (36 | ) |
| | — | | | | (5 | ) | | | (10 | ) | | | (67 | ) | | | (118 | ) | | | (92 | ) |
| | (70 | ) | | | (336 | ) | | | (161 | ) | | | (696 | ) | | | (1,164 | ) | | | (942 | ) |
| | (3 | ) | | | (129 | ) | | | (281 | ) | | | (1,317 | ) | | | (2,706 | ) | | | (2,029 | ) |
| | — | | | | — | | | | — | | | | — | | | | (3,598 | ) | | | (2,703 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (73 | ) | | | (470 | ) | | | (452 | ) | | | (2,136 | ) | | | (7,613 | ) | | | (5,832 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (11,239 | ) | | | (33,982 | ) | | | (17,177 | ) | | | (47,365 | ) | | | (71,386 | ) | | | (66,590 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 2,046 | | | | (19,962 | ) | | | 9,496 | | | | (34,518 | ) | | | 271,475 | | | | 43,633 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 94,480 | | | | 114,442 | | | | 149,689 | | | | 184,207 | | | | 1,361,502 | | | | 1,317,869 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| $ | 96,526 | | | $ | 94,480 | | | $ | 159,185 | | | $ | 149,689 | | | $ | 1,632,977 | | | $ | 1,361,502 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| $ | (24 | ) | | $ | 72 | | | $ | (51 | ) | | $ | 24 | | | $ | 1,518 | | | $ | 5,640 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 251 |
Russell Investment Company
Russell Funds
Statements of Changes in Net Assets, continued
| | | | | | | | | | | | | | | | |
| | | Russell International Developed
Markets Fund | | | Russell Global
Equity Fund | |
| Amounts in thousands | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 27,383 | | | $ | 75,575 | | | $ | 3,254 | | | $ | 13,628 | |
Net realized gain (loss) | | | 81,461 | | | | (739,585 | ) | | | 52,397 | | | | (207,369 | ) |
Net change in unrealized appreciation (depreciation) | | | 96,844 | | | | 1,466,126 | | | | 108,664 | | | | 369,956 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | 205,688 | | | | 802,116 | | | | 164,315 | | | | 176,215 | |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | | | | | |
Class A | | | (678 | ) | | | — | | | | (60 | ) | | | (59 | ) |
Class C | | | (1,951 | ) | | | — | | | | (37 | ) | | | (14 | ) |
Class E | | | (2,949 | ) | | | — | | | | (167 | ) | | | (120 | ) |
Class I | | | (32,300 | ) | | | — | | | | — | | | | — | |
Class S | | | (47,639 | ) | | | — | | | | (5,794 | ) | | | (4,698 | ) |
Class Y | | | (65,231 | ) | | | — | | | | (7,470 | ) | | | (7,130 | ) |
From net realized gain | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | — | | | | — | | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
Class Y | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net decrease in net assets from distributions | | | (150,748 | ) | | | — | | | | (13,528 | ) | | | (12,021 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Share Transactions | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 350,975 | | | | (312,657 | ) | | | 744,308 | | | | 5,845 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 405,915 | | | | 489,459 | | | | 895,095 | | | | 170,039 | |
| | | | |
Net Assets | | | | | | | | | | | | | | | | |
Beginning of period | | | 4,228,431 | | | | 3,738,972 | | | | 962,484 | | | | 792,445 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 4,634,346 | | | $ | 4,228,431 | | | $ | 1,857,579 | | | $ | 962,484 | |
| | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (6,226 | ) | | $ | 117,139 | | | $ | (926 | ) | | $ | 9,348 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 252 | | Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | |
Russell Emerging
Markets Fund | | | Russell Tax-Managed
Large Cap Fund | | | Russell Tax-Managed Mid &
Small Cap Fund | |
Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 2,503 | | | $ | 9,244 | | | $ | 770 | | | $ | 3,016 | | | $ | (5 | ) | | $ | 282 | |
| | 75,108 | | | | (134,444 | ) | | | 7,922 | | | | (43,359 | ) | | | 10,359 | | | | (20,605 | ) |
| | 100,687 | | | | 632,857 | | | | 47,784 | | | | 76,012 | | | | 22,438 | | | | 31,172 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 178,298 | | | | 507,657 | | | | 56,476 | | | | 35,669 | | | | 32,792 | | | | 10,849 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (324 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (741 | ) | | | — | | | | — | | | | (11 | ) | | | — | | | | — | |
| | (861 | ) | | | — | | | | (76 | ) | | | (138 | ) | | | — | | | | (14 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (22,342 | ) | | | — | | | | (2,254 | ) | | | (4,396 | ) | | | (118 | ) | | | (1,096 | ) |
| | (10,330 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (346 | ) | | | — | | | | — | | | | — | | | | — | |
| | — | | | | (1,147 | ) | | | — | | | | — | | | | — | | | | — | |
| | — | | | | (829 | ) | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | (23,557 | ) | | | — | | | | — | | | | — | | | | — | |
| | — | | | | (14,874 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (34,598 | ) | | | (40,753 | ) | | | (2,330 | ) | | | (4,545 | ) | | | (118 | ) | | | (1,110 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 27,764 | | | | (125,175 | ) | | | (6,180 | ) | | | (47,316 | ) | | | (7,602 | ) | | | (34,372 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 171,464 | | | | 341,729 | | | | 47,966 | | | | (16,192 | ) | | | 25,072 | | | | (24,633 | ) |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,218,007 | | | | 876,278 | | | | 341,445 | | | | 357,637 | | | | 129,629 | | | | 154,262 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,389,471 | | | $ | 1,218,007 | | | $ | 389,411 | | | $ | 341,445 | | | $ | 154,701 | | | $ | 129,629 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| $ | (31,388 | ) | | $ | 707 | | | $ | 164 | | | $ | 1,724 | | | $ | (123 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 253 |
Russell Investment Company
Russell Funds
Statements of Changes in Net Assets, continued
| | | | | | | | | | | | | | | | |
| | | Russell Strategic
Bond Fund | | | Russell Investment Grade
Bond Fund | |
| Amounts in thousands | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 156,357 | | | $ | 339,991 | | | $ | 17,805 | | | $ | 44,905 | |
Net realized gain (loss) | | | 88,614 | | | | (40,748 | ) | | | 12,391 | | | | 20,415 | |
Net change in unrealized appreciation (depreciation) | | | 247,474 | | | | 825,721 | | | | 23,149 | | | | 111,607 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | 492,445 | | | | 1,124,964 | | | | 53,345 | | | | 176,927 | |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | | | | | |
Class A | | | (978 | ) | | | (1,433 | ) | | | — | | | | — | |
Class C | | | (1,968 | ) | | | (4,137 | ) | | | (509 | ) | | | (1,112 | ) |
Class E | | | (3,336 | ) | | | (6,700 | ) | | | (856 | ) | | | (1,768 | ) |
Class I | | | (31,163 | ) | | | (66,042 | ) | | | (7,704 | ) | | | (16,415 | ) |
Class S | | | (51,717 | ) | | | (97,075 | ) | | | (3,207 | ) | | | (5,182 | ) |
Class Y | | | (83,982 | ) | | | (165,478 | ) | | | (8,783 | ) | | | (18,920 | ) |
From net realized gain | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (109 | ) | | | — | | | | — | |
Class C | | | — | | | | (410 | ) | | | (148 | ) | | | — | |
Class E | | | — | | | | (603 | ) | | | (187 | ) | | | — | |
Class I | | | — | | | | (5,577 | ) | | | (1,618 | ) | | | — | |
Class S | | | — | | | | (8,216 | ) | | | (532 | ) | | | — | |
Class Y | | | — | | | | (13,184 | ) | | | (1,486 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net decrease in net assets from distributions | | | (173,144 | ) | | | (368,964 | ) | | | (25,030 | ) | | | (43,397 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Share Transactions | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (52,320 | ) | | | (122,243 | ) | | | 650,282 | | | | (272,126 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 266,981 | | | | 633,757 | | | | 678,597 | | | | (138,596 | ) |
| | | | |
Net Assets | | | | | | | | | | | | | | | | |
Beginning of period | | | 7,301,863 | | | | 6,668,106 | | | | 959,383 | | | | 1,097,979 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 7,568,844 | | | $ | 7,301,863 | | | $ | 1,637,980 | | | $ | 959,383 | |
| | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 15,134 | | | $ | 31,921 | | | $ | 1,771 | | | $ | 5,025 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 254 | | Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Russell Short Duration
Bond Fund | | | Russell Tax Exempt
Bond Fund | | | Russell Real Estate
Securities Fund | | | Russell Money
Market Fund | |
Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 8,352 | | | $ | 16,951 | | | $ | 8,095 | | | $ | 14,096 | | | $ | 32,704 | | | $ | 49,504 | | | $ | 1 | | | $ | 23,336 | |
| | 9,334 | | | | (8,961 | ) | | | 765 | | | | 217 | | | | 97,504 | | | | (382,498 | ) | | | 1,862 | | | | 250,551 | |
| | 4,369 | | | | 50,060 | | | | 5,515 | | | | 25,208 | | | | 373,703 | | | | 451,436 | | | | — | | | | (248,865 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 22,055 | | | | 58,050 | | | | 14,375 | | | | 39,521 | | | | 503,911 | | | | 118,442 | | | | 1,863 | | | | 25,022 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (275 | ) | | | (346 | ) | | | — | | | | — | | | | (221 | ) | | | (431 | ) | | | (2 | ) | | | (1,593 | ) |
| | (759 | ) | | | (747 | ) | | | (325 | ) | | | (493 | ) | | | (411 | ) | | | (1,011 | ) | | | — | | | | — | |
| | (306 | ) | | | (484 | ) | | | (408 | ) | | | (648 | ) | | | (470 | ) | | | (1,029 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (6,464 | ) | | | (10,265 | ) | | | (7,290 | ) | | | (12,892 | ) | | | (14,579 | ) | | | (27,630 | ) | | | (10 | ) | | | (21,732 | ) |
| | (3,040 | ) | | | (4,425 | ) | | | — | | | | — | | | | (7,939 | ) | | | (18,678 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (10,844 | ) | | | (16,267 | ) | | | (8,023 | ) | | | (14,033 | ) | | | (23,620 | ) | | | (48,779 | ) | | | (12 | ) | | | (23,325 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 144,981 | | | | 163,625 | | | | 57,719 | | | | 32,625 | | | | (65,162 | ) | | | 138,859 | | | | (2,115,008 | ) | | | (2,713,533 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 156,192 | | | | 205,408 | | | | 64,071 | | | | 58,113 | | | | 415,129 | | | | 208,522 | | | | (2,113,157 | ) | | | (2,711,836 | ) |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 590,047 | | | | 384,639 | | | | 459,783 | | | | 401,670 | | | | 1,663,563 | | | | 1,455,041 | | | | 2,577,640 | | | | 5,289,476 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 746,239 | | | $ | 590,047 | | | $ | 523,854 | | | $ | 459,783 | | | $ | 2,078,692 | | | $ | 1,663,563 | | | $ | 464,483 | | | $ | 2,577,640 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 623 | | | $ | 3,115 | | | $ | 1,377 | | | $ | 1,305 | | | $ | 10,677 | | | $ | 1,593 | | | $ | 25 | | | $ | 36 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 255 |
Russell Investment Company
Russell Funds
Statement of Cash Flows — For the Period Ended April 30, 2010 (Unaudited)
| | | | |
| | | | |
| Amounts in thousands | | Russell U.S.
Quantitative
Equity Fund* | |
Increase (Decrease) in Cash | | | | |
| |
Cash Flows from Operating Activities | | | | |
Net increase in net assets from operations | | $ | 568,402 | |
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities | | | | |
Purchase of investment securities | | | (2,326,478 | ) |
Proceeds from disposition of investment securities | | | 3,160,904 | |
Purchases of short-term investment securities, net | | | (51,508 | ) |
Increase in cash collateral for futures contracts | | | 16,900 | |
Decrease in receivables for dividends and interest | | | 1,658 | |
Increase in receivables for investments sold | | | (9,833 | ) |
Increase in prepaid expenses | | | (151 | ) |
Increase in payables for investments purchased | | | 176 | |
Decrease in payables for accrued fees to affiliates | | | (211 | ) |
Decrease in payables for other accrued expenses | | | (56 | ) |
Decrease in payables for dividends from securities sold short | | | (72 | ) |
Decrease in payables for daily variation margin on futures contracts | | | (3,587 | ) |
Change in unrealized appreciation on securities on investments | | | (351,484 | ) |
Net realized loss on investments | | | (190,280 | ) |
| | | | |
Net cash provided by operating activities | | | 814,380 | |
| | | | |
| |
Cash Flows from Financing Activities | | | | |
Proceeds from shares sold | | | 284,020 | |
Payments for shares redeemed | | | (1,097,418 | ) |
Cash distributions paid | | | (982 | ) |
| | | | |
Net cash used in financing activities | | | (814,380 | ) |
| | | | |
Net increase in cash | | | — | |
Cash | | | | |
Beginning balance | | | — | |
| | | | |
Ending balance | | $ | — | |
| | | | |
| * | The Russell U.S. Quantitative Equity Fund is the only fund presented herein required to present a Statement of Cash Flows. |
See accompanying notes which are an integral part of the financial statements.
| | |
| 256 | | Statement of Cash Flows |
(This page intentionally left blank)
Russell Investment Company
Russell Funds
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell U.S. Core Equity Fund | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 22.76 | | .06 | | | 3.41 | | | 3.47 | | | (.06 | ) | | — | | | — |
October 31, 2009 | | 20.73 | | .17 | | | 2.05 | | | 2.22 | | | (.19 | ) | | — | | | — |
October 31, 2008(5) | | 28.57 | | .03 | | | (7.85 | ) | | (7.82 | ) | | (.02 | ) | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 22.69 | | (.03 | ) | | 3.40 | | | 3.37 | | | — | (d) | | — | | | — |
October 31, 2009 | | 20.71 | | .03 | | | 2.01 | | | 2.04 | | | (.06 | ) | | — | | | — |
October 31, 2008(5) | | 28.57 | | — | (d) | | (7.85 | ) | | (7.85 | ) | | (.01 | ) | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 22.73 | | .07 | | | 3.41 | | | 3.48 | | | (.07 | ) | | — | | | — |
October 31, 2009 | | 20.73 | | .20 | | | 2.01 | | | 2.21 | | | (.21 | ) | | — | | | — |
October 31, 2008 | | 38.09 | | .31 | | | (14.35 | ) | | (14.04 | ) | | (.35 | ) | | (2.97 | ) | | — |
October 31, 2007 | | 33.51 | | .29 | | | 6.08 | | | 6.37 | | | (.28 | ) | | (1.51 | ) | | — |
October 31, 2006 | | 30.81 | | .25 | | | 3.96 | | | 4.21 | | | (.24 | ) | | (1.27 | ) | | — |
October 31, 2005 | | 27.56 | | .25 | | | 3.24 | | | 3.49 | | | (.24 | ) | | — | | | — |
| Class I | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 22.72 | | .10 | | | 3.43 | | | 3.53 | | | (.11 | ) | | — | | | — |
October 31, 2009 | | 20.73 | | .25 | | | 2.00 | | | 2.25 | | | (.26 | ) | | — | | | — |
October 31, 2008 | | 38.08 | | .41 | | | (14.37 | ) | | (13.96 | ) | | (.42 | ) | | (2.97 | ) | | — |
October 31, 2007 | | 33.49 | | .37 | | | 6.10 | | | 6.47 | | | (.37 | ) | | (1.51 | ) | | — |
October 31, 2006 | | 30.79 | | .32 | | | 3.96 | | | 4.28 | | | (.31 | ) | | (1.27 | ) | | — |
October 31, 2005 | | 27.54 | | .32 | | | 3.24 | | | 3.56 | | | (.31 | ) | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 22.72 | | .09 | | | 3.42 | | | 3.51 | | | (.09 | ) | | — | | | — |
October 31, 2009 | | 20.72 | | .22 | | | 2.01 | | | 2.23 | | | (.23 | ) | | — | | | — |
October 31, 2008(5) | | 28.56 | | .05 | | | (7.87 | ) | | (7.82 | ) | | (.02 | ) | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 22.71 | | .11 | | | 3.41 | | | 3.52 | | | (.11 | ) | | — | | | — |
October 31, 2009 | | 20.71 | | .25 | | | 2.02 | | | 2.27 | | | (.27 | ) | | — | | | — |
October 31, 2008 | | 38.07 | | .37 | | | (14.33 | ) | | (13.96 | ) | | (.43 | ) | | (2.97 | ) | | — |
October 31, 2007 | | 33.49 | | .39 | | | 6.09 | | | 6.48 | | | (.39 | ) | | (1.51 | ) | | — |
October 31, 2006 | | 30.77 | | .34 | | | 3.98 | | | 4.32 | | | (.33 | ) | | (1.27 | ) | | — |
October 31, 2005 | | 27.53 | | .31 | | | 3.26 | | | 3.57 | | | (.33 | ) | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.06 | ) | | 26.17 | | 15.27 | | | 24,558 | | 1.06 | | 1.06 | | .47 | | | 51 |
| (.19 | ) | | 22.76 | | 10.87 | | | 20,849 | | 1.07 | | 1.07 | | .85 | | | 125 |
| (.02 | ) | | 20.73 | | (27.38 | ) | | 16,179 | | 1.09 | | 1.10 | | .73 | | | 121 |
| | | | | | | | | | | | | | | | | |
| — | (d) | | 26.06 | | 14.86 | | | 85,890 | | 1.81 | | 1.81 | | (.27 | ) | | 51 |
| (.06 | ) | | 22.69 | | 9.92 | | | 82,018 | | 1.81 | | 1.81 | | .14 | | | 125 |
| (.01 | ) | | 20.71 | | (27.49 | ) | | 86,199 | | 1.83 | | 1.84 | | .00 | | | 121 |
| | | | | | | | | | | | | | | | | |
| (.07 | ) | | 26.14 | | 15.35 | | | 95,870 | | .94 | | 1.06 | | .60 | | | 51 |
| (.21 | ) | | 22.73 | | 10.84 | | | 94,835 | | .94 | | 1.07 | | 1.01 | | | 125 |
| (3.32 | ) | | 20.73 | | (40.01 | ) | | 94,785 | | .95 | | 1.00 | | 1.07 | | | 121 |
| (1.79 | ) | | 38.09 | | 19.82 | | | 49,355 | | .93 | | .95 | | .82 | | | 113 |
| (1.51 | ) | | 33.51 | | 14.07 | | | 43,911 | | .93 | | .96 | | .78 | | | 98 |
| (.24 | ) | | 30.81 | | 12.70 | | | 37,666 | | .92 | | .96 | | .83 | | | 110 |
| | | | | | | | | | | | | | | | | |
| (.11 | ) | | 26.14 | | 15.54 | | | 1,040,465 | | .70 | | .73 | | .83 | | | 51 |
| (.26 | ) | | 22.72 | | 11.08 | | | 809,999 | | .69 | | .74 | | 1.27 | | | 125 |
| (3.39 | ) | | 20.73 | | (39.85 | ) | | 872,188 | | .70 | | .73 | | 1.37 | | | 121 |
| (1.88 | ) | | 38.08 | | 20.17 | | | 1,396,706 | | .68 | | .70 | | 1.07 | | | 113 |
| (1.58 | ) | | 33.49 | | 14.34 | | | 1,095,931 | | .71 | | .73 | | 1.01 | | | 98 |
| (.31 | ) | | 30.79 | | 12.97 | | | 825,172 | | .69 | | .73 | | 1.06 | | | 110 |
| | | | | | | | | | | | | | | | | |
| (.09 | ) | | 26.14 | | 15.47 | | | 1,582,712 | | .81 | | .81 | | .72 | | | 51 |
| (.23 | ) | | 22.72 | | 10.99 | | | 1,418,555 | | .82 | | .82 | | 1.11 | | | 125 |
| (.02 | ) | | 20.72 | | (27.39 | ) | | 1,249,003 | | .83 | | .85 | | 1.01 | | | 121 |
| | | | | | | | | | | | | | | | | |
| (.11 | ) | | 26.12 | | 15.54 | | | 2,022,945 | | .64 | | .64 | | .91 | | | 51 |
| (.27 | ) | | 22.71 | | 11.18 | | | 2,048,380 | | .64 | | .64 | | 1.29 | | | 125 |
| (3.40 | ) | | 20.71 | | (39.87 | ) | | 1,927,663 | | .66 | | .67 | | 1.35 | | | 121 |
| (1.90 | ) | | 38.07 | | 20.23 | | | 575,655 | | .63 | | .65 | | 1.12 | | | 113 |
| (1.60 | ) | | 33.49 | | 14.48 | | | 504,168 | | .64 | | .66 | | 1.07 | | | 98 |
| (.33 | ) | | 30.77 | | 13.00 | | | 341,294 | | .65 | | .67 | | 1.03 | | | 110 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell U.S. Quantitative Equity Fund | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 23.94 | | .12 | | | 3.27 | | | 3.39 | | | (.12 | ) | | — | | | — |
October 31, 2009 | | 22.26 | | .25 | | | 1.68 | | | 1.93 | | | (.25 | ) | | — | | | — |
October 31, 2008(5) | | 30.15 | | .01 | | | (7.88 | ) | | (7.87 | ) | | (.02 | ) | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 23.89 | | .02 | | | 3.27 | | | 3.29 | | | (.04 | ) | | — | | | — |
October 31, 2009 | | 22.23 | | .10 | | | 1.64 | | | 1.74 | | | (.08 | ) | | — | | | — |
October 31, 2008(5) | | 30.15 | | (.02 | ) | | (7.89 | ) | | (7.91 | ) | | (.01 | ) | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 23.92 | | .13 | | | 3.27 | | | 3.40 | | | (.13 | ) | | — | | | — |
October 31, 2009 | | 22.26 | | .28 | | | 1.65 | | | 1.93 | | | (.27 | ) | | — | | | — |
October 31, 2008 | | 40.29 | | .29 | | | (14.34 | ) | | (14.05 | ) | | (.26 | ) | | (3.72 | ) | | — |
October 31, 2007 | | 39.35 | | .31 | | | 3.80 | | | 4.11 | | | (.33 | ) | | (2.84 | ) | | — |
October 31, 2006 | | 35.20 | | .35 | | | 5.02 | | | 5.37 | | | (.35 | ) | | (.87 | ) | | — |
October 31, 2005 | | 32.32 | | .35 | | | 2.88 | | | 3.23 | | | (.35 | ) | | — | | | — |
| Class I | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 23.95 | | .17 | | | 3.27 | | | 3.44 | | | (.17 | ) | | — | | | — |
October 31, 2009 | | 22.29 | | .34 | | | 1.64 | | | 1.98 | | | (.32 | ) | | — | | | — |
October 31, 2008 | | 40.30 | | .38 | | | (14.35 | ) | | (13.97 | ) | | (.32 | ) | | (3.72 | ) | | — |
October 31, 2007 | | 39.36 | | .40 | | | 3.81 | | | 4.21 | | | (.43 | ) | | (2.84 | ) | | — |
October 31, 2006 | | 35.20 | | .44 | | | 5.03 | | | 5.47 | | | (.44 | ) | | (.87 | ) | | — |
October 31, 2005 | | 32.32 | | .44 | | | 2.88 | | | 3.32 | | | (.44 | ) | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 23.96 | | .15 | | | 3.27 | | | 3.42 | | | (.15 | ) | | — | | | — |
October 31, 2009 | | 22.30 | | .31 | | | 1.65 | | | 1.96 | | | (.30 | ) | | — | | | — |
October 31, 2008(5) | | 30.18 | | .02 | | | (7.88 | ) | | (7.86 | ) | | (.02 | ) | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 23.96 | | .17 | | | 3.27 | | | 3.44 | | | (.18 | ) | | — | | | — |
October 31, 2009 | | 22.29 | | .34 | | | 1.66 | | | 2.00 | | | (.33 | ) | | — | | | — |
October 31, 2008 | | 40.30 | | .36 | | | (14.31 | ) | | (13.95 | ) | | (.34 | ) | | (3.72 | ) | | — |
October 31, 2007 | | 39.36 | | .42 | | | 3.80 | | | 4.22 | | | (.44 | ) | | (2.84 | ) | | — |
October 31, 2006 | | 35.20 | | .46 | | | 5.02 | | | 5.48 | | | (.45 | ) | | (.87 | ) | | — |
October 31, 2005 | | 32.32 | | .45 | | | 2.88 | | | 3.33 | | | (.45 | ) | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.12 | ) | | 27.21 | | 14.18 | | | 18,646 | | 1.26 | | 1.26 | | .90 | | | 50 |
| (.25 | ) | | 23.94 | | 8.82 | | | 17,522 | | 1.31 | | 1.31 | | 1.19 | | | 115 |
| (.02 | ) | | 22.26 | | (26.11 | ) | | 14,403 | | 1.26 | | 1.26 | | .32 | | | 118 |
| | | | | | | | | | | | | | | | | |
| (.04 | ) | | 27.14 | | 13.76 | | | 71,889 | | 2.00 | | 2.00 | | .16 | | | 50 |
| (.08 | ) | | 23.89 | | 7.91 | | | 71,301 | | 2.06 | | 2.06 | | .49 | | | 115 |
| (.01 | ) | | 22.23 | | (26.23 | ) | | 82,787 | | 2.00 | | 2.01 | | (.43 | ) | | 118 |
| | | | | | | | | | | | | | | | | |
| (.13 | ) | | 27.19 | | 14.25 | | | 76,161 | | 1.14 | | 1.26 | | 1.04 | | | 50 |
| (.27 | ) | | 23.92 | | 8.86 | | | 79,008 | | 1.18 | | 1.31 | | 1.35 | | | 115 |
| (3.98 | ) | | 22.26 | | (38.26 | ) | | 86,593 | | 1.15 | | 1.20 | | .94 | | | 118 |
| (3.17 | ) | | 40.29 | | 11.11 | | | 61,842 | | 1.07 | | 1.09 | | .79 | | | 121 |
| (1.22 | ) | | 39.35 | | 15.56 | | | 56,703 | | .94 | | .96 | | .93 | | | 106 |
| (.35 | ) | | 35.20 | | 10.03 | | | 46,352 | | .91 | | .93 | | 1.01 | | | 117 |
| | | | | | | | | | | | | | | | | |
| (.17 | ) | | 27.22 | | 14.38 | | | 623,742 | | .89 | | .92 | | 1.29 | | | 50 |
| (.32 | ) | | 23.95 | | 9.12 | | | 736,767 | | .93 | | .98 | | 1.62 | | | 115 |
| (4.04 | ) | | 22.29 | | (38.11 | ) | | 815,038 | | .93 | | .96 | | 1.22 | | | 118 |
| (3.27 | ) | | 40.30 | | 11.40 | | | 1,369,379 | | .82 | | .84 | | 1.04 | | | 121 |
| (1.31 | ) | | 39.36 | | 15.87 | | | 1,201,844 | | .70 | | .72 | | 1.18 | | | 106 |
| (.44 | ) | | 35.20 | | 10.30 | | | 1,009,002 | | .66 | | .69 | | 1.26 | | | 117 |
| | | | | | | | | | | | | | | | | |
| (.15 | ) | | 27.23 | | 14.30 | | | 1,324,421 | | 1.00 | | 1.00 | | 1.17 | | | 50 |
| (.30 | ) | | 23.96 | | 8.98 | | | 1,356,163 | | 1.06 | | 1.06 | | 1.46 | | | 115 |
| (.02 | ) | | 22.30 | | (26.05 | ) | | 1,245,509 | | 1.00 | | 1.02 | | .36 | | | 118 |
| | | | | | | | | | | | | | | | | |
| (.18 | ) | | 27.22 | | 14.36 | | | 1,871,987 | | .83 | | .83 | | 1.35 | | | 50 |
| (.33 | ) | | 23.96 | | 9.21 | | | 1,975,524 | | .88 | | .88 | | 1.63 | | | 115 |
| (4.06 | ) | | 22.29 | | (38.07 | ) | | 1,882,415 | | .85 | | .86 | | 1.27 | | | 118 |
| (3.28 | ) | | 40.30 | | 11.44 | | | 371,457 | | .77 | | .79 | | 1.09 | | | 121 |
| (1.32 | ) | | 39.36 | | 15.93 | | | 393,292 | | .64 | | .67 | | 1.23 | | | 106 |
| (.45 | ) | | 35.20 | | 10.34 | | | 338,308 | | .63 | | .65 | | 1.30 | | | 117 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell U.S. Growth Fund | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 5.96 | | (.03 | ) | | .89 | | | .86 | | | — | | | — | | | — |
October 31, 2009 | | 5.09 | | (.04 | ) | | .91 | | | .87 | | | — | | | — | | | — |
October 31, 2008 | | 9.17 | | (.07 | ) | | (3.60 | ) | | (3.67 | ) | | — | | | (.41 | ) | | — |
October 31, 2007 | | 7.84 | | (.09 | ) | | 1.42 | | | 1.33 | | | — | | | — | | | — |
October 31, 2006 | | 7.45 | | (.09 | ) | | .48 | | | .39 | | | — | | | — | | | — |
October 31, 2005 | | 6.85 | | (.08 | ) | | .68 | | | .60 | | | — | | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.43 | | (.01 | ) | | .97 | | | .96 | | | — | | | — | | | — |
October 31, 2009 | | 5.46 | | — | (d) | | .98 | | | .98 | | | (.01 | ) | | — | | | — |
October 31, 2008 | | 9.72 | | — | (d) | | (3.85 | ) | | (3.85 | ) | | — | | | (.41 | ) | | — |
October 31, 2007 | | 8.25 | | (.02 | ) | | 1.49 | | | 1.47 | | | — | | | — | | | — |
October 31, 2006 | | 7.76 | | (.03 | ) | | .52 | | | .49 | | | — | | | — | | | — |
October 31, 2005 | | 7.08 | | (.01 | ) | | .69 | | | .68 | | | — | | | — | | | — |
| Class I | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.62 | | — | (d) | | 1.01 | | | 1.01 | | | (.01 | ) | | — | | | — |
October 31, 2009 | | 5.63 | | .02 | | | 1.00 | | | 1.02 | | | (.03 | ) | | — | | | — |
October 31, 2008 | | 9.98 | | .03 | | | (3.97 | ) | | (3.94 | ) | | — | | | (.41 | ) | | — |
October 31, 2007 | | 8.44 | | .01 | | | 1.53 | | | 1.54 | | | — | | | — | | | — |
October 31, 2006 | | 7.91 | | .01 | | | .52 | | | .53 | | | — | (d) | | — | | | — |
October 31, 2005 | | 7.19 | | .01 | | | .71 | | | .72 | | | — | | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.56 | | — | (d) | | .99 | | | .99 | | | — | (d) | | — | | | — |
October 31, 2009 | | 5.57 | | .01 | | | 1.00 | | | 1.01 | | | (.02 | ) | | — | | | — |
October 31, 2008 | | 9.89 | | .01 | | | (3.92 | ) | | (3.91 | ) | | — | | | (.41 | ) | | — |
October 31, 2007 | | 8.38 | | (.01 | ) | | 1.52 | | | 1.51 | | | — | | | — | | | — |
October 31, 2006 | | 7.87 | | (.01 | ) | | .52 | | | .51 | | | — | | | — | | | — |
October 31, 2005 | | 7.15 | | — | (d) | | .72 | | | .72 | | | — | | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| — | | | 6.82 | | 14.43 | | | 6,140 | | 2.05 | | 2.22 | | (1.04 | ) | | 45 |
| — | | | 5.96 | | 17.09 | | | 5,770 | | 2.11 | | 2.18 | | (.76 | ) | | 118 |
| (.41 | ) | | 5.09 | | (41.76 | ) | | 6,211 | | 2.21 | | 2.31 | | (.90 | ) | | 120 |
| — | | | 9.17 | | 16.96 | | | 11,204 | | 2.23 | | 2.27 | | (1.14 | ) | | 138 |
| — | | | 7.84 | | 5.23 | | | 9,764 | | 2.22 | | 2.27 | | (1.20 | ) | | 148 |
| — | | | 7.45 | | 8.76 | | | 8,149 | | 2.23 | | 2.32 | | (1.15 | ) | | 128 |
| | | | | | | | | | | | | | | | | |
| — | | | 7.39 | | 14.93 | | | 5,627 | | 1.30 | | 1.47 | | (.29 | ) | | 45 |
| (.01 | ) | | 6.43 | | 17.90 | | | 5,381 | | 1.36 | | 1.43 | | (.02 | ) | | 118 |
| (.41 | ) | | 5.46 | | (41.23 | ) | | 5,308 | | 1.37 | | 1.48 | | (.06 | ) | | 120 |
| — | | | 9.72 | | 17.82 | | | 7,104 | | 1.37 | | 1.41 | | (.28 | ) | | 138 |
| — | | | 8.25 | | 6.31 | | | 6,590 | | 1.36 | | 1.42 | | (.34 | ) | | 148 |
| — | | | 7.76 | | 9.60 | | | 4,255 | | 1.28 | | 1.40 | | (.15 | ) | | 128 |
| | | | | | | | | | | | | | | | | |
| (.01 | ) | | 7.62 | | 15.27 | | | 48,173 | | .92 | | 1.14 | | .09 | | | 45 |
| (.03 | ) | | 6.62 | | 18.34 | | | 49,355 | | .98 | | 1.11 | | .38 | | | 118 |
| (.41 | ) | | 5.63 | | (41.05 | ) | | 58,509 | | .98 | | 1.13 | | .33 | | | 120 |
| — | | | 9.98 | | 18.25 | | | 113,989 | | 1.00 | | 1.06 | | .09 | | | 138 |
| — | (d) | | 8.44 | | 6.75 | | | 90,953 | | .95 | | 1.13 | | .07 | | | 148 |
| — | | | 7.91 | | 10.17 | | | 112,112 | | .92 | | 1.08 | | .12 | | | 128 |
| | | | | | | | | | | | | | | | | |
| — | (d) | | 7.55 | | 15.10 | | | 36,586 | | 1.05 | | 1.22 | | (.04 | ) | | 45 |
| (.02 | ) | | 6.56 | | 18.15 | | | 33,974 | | 1.11 | | 1.19 | | .25 | | | 118 |
| (.41 | ) | | 5.57 | | (41.19 | ) | | 44,414 | | 1.19 | | 1.30 | | .12 | | | 120 |
| — | | | 9.89 | | 18.02 | | | 79,962 | | 1.16 | | 1.20 | | (.07 | ) | | 138 |
| — | | | 8.38 | | 6.48 | | | 71,433 | | 1.15 | | 1.21 | | (.13 | ) | | 148 |
| — | | | 7.87 | | 10.07 | | | 57,324 | | 1.06 | | 1.18 | | .04 | | | 128 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell U.S. Value Fund | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.43 | | (.02 | ) | | 1.21 | | | 1.19 | | | — | | | — | | | — |
October 31, 2009 | | 5.69 | | .02 | | | .75 | | | .77 | | | (.03 | ) | | — | | | — |
October 31, 2008 | | 12.84 | | .05 | | | (5.19 | ) | | (5.14 | ) | | (.06 | ) | | (1.95 | ) | | — |
October 31, 2007 | | 12.44 | | .01 | | | 1.16 | | | 1.17 | | | (.02 | ) | | (.75 | ) | | — |
October 31, 2006 | | 11.27 | | .01 | | | 1.83 | | | 1.84 | | | (.03 | ) | | (.64 | ) | | — |
October 31, 2005 | | 10.15 | | (.02 | ) | | 1.16 | | | 1.14 | | | (.01 | ) | | (.01 | ) | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.58 | | .01 | | | 1.24 | | | 1.25 | | | (.01 | ) | | — | | | — |
October 31, 2009 | | 5.82 | | .06 | | | .76 | | | .82 | | | (.06 | ) | | — | | | — |
October 31, 2008 | | 13.10 | | .12 | | | (5.31 | ) | | (5.19 | ) | | (.14 | ) | | (1.95 | ) | | — |
October 31, 2007 | | 12.66 | | .11 | | | 1.19 | | | 1.30 | | | (.11 | ) | | (.75 | ) | | — |
October 31, 2006 | | 11.43 | | .11 | | | 1.87 | | | 1.98 | | | (.11 | ) | | (.64 | ) | | — |
October 31, 2005 | | 10.28 | | .09 | | | 1.16 | | | 1.25 | | | (.09 | ) | | (.01 | ) | | — |
| Class I | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.60 | | .02 | | | 1.25 | | | 1.27 | | | (.03 | ) | | — | | | — |
October 31, 2009 | | 5.84 | | .08 | | | .76 | | | .84 | | | (.08 | ) | | — | | | — |
October 31, 2008 | | 13.13 | | .15 | | | (5.32 | ) | | (5.17 | ) | | (.17 | ) | | (1.95 | ) | | — |
October 31, 2007 | | 12.69 | | .16 | | | 1.18 | | | 1.34 | | | (.15 | ) | | (.75 | ) | | — |
October 31, 2006 | | 11.46 | | .15 | | | 1.87 | | | 2.02 | | | (.15 | ) | | (.64 | ) | | — |
October 31, 2005 | | 10.30 | | .13 | | | 1.17 | | | 1.30 | | | (.13 | ) | | (.01 | ) | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 6.58 | | .02 | | | 1.24 | | | 1.26 | | | (.02 | ) | | — | | | — |
October 31, 2009 | | 5.82 | | .08 | | | .76 | | | .84 | | | (.08 | ) | | — | | | — |
October 31, 2008 | | 13.10 | | .14 | | | (5.32 | ) | | (5.18 | ) | | (.15 | ) | | (1.95 | ) | | — |
October 31, 2007 | | 12.67 | | .14 | | | 1.17 | | | 1.31 | | | (.14 | ) | | (.75 | ) | | — |
October 31, 2006 | | 11.44 | | .13 | | | 1.87 | | | 2.00 | | | (.13 | ) | | (.64 | ) | | — |
October 31, 2005 | | 10.29 | | .11 | | | 1.16 | | | 1.27 | | | (.11 | ) | | (.01 | ) | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| — | | | 7.62 | | 18.51 | | | 11,662 | | 2.08 | | 2.08 | | (.46 | ) | | 40 |
| (.03 | ) | | 6.43 | | 13.69 | | | 10,593 | | 2.04 | | 2.04 | | .36 | | | 111 |
| (2.01 | ) | | 5.69 | | (46.49 | ) | | 11,225 | | 2.13 | | 2.13 | | .54 | | | 156 |
| (.77 | ) | | 12.84 | | 9.73 | | | 25,688 | | 2.09 | | 2.09 | | .06 | | | 128 |
| (.67 | ) | | 12.44 | | 17.01 | | | 26,168 | | 2.11 | | 2.11 | | .08 | �� | | 87 |
| (.02 | ) | | 11.27 | | 11.23 | | | 21,228 | | 2.18 | | 2.20 | | (.18 | ) | | 85 |
| | | | | | | | | | | | | | | | | |
| (.01 | ) | | 7.82 | | 19.06 | | | 4,423 | | 1.33 | | 1.33 | | .35 | | | 40 |
| (.06 | ) | | 6.58 | | 14.44 | | | 5,282 | | 1.29 | | 1.29 | | 1.15 | | | 111 |
| (2.09 | ) | | 5.82 | | (46.08 | ) | | 6,852 | | 1.31 | | 1.31 | | 1.35 | | | 156 |
| (.86 | ) | | 13.10 | | 10.64 | | | 10,774 | | 1.27 | | 1.27 | | .88 | | | 128 |
| (.75 | ) | | 12.66 | | 18.15 | | | 10,871 | | 1.27 | | 1.27 | | .91 | | | 87 |
| (.10 | ) | | 11.43 | | 12.14 | | | 8,770 | | 1.25 | | 1.30 | | .78 | | | 85 |
| | | | | | | | | | | | | | | | | |
| (.03 | ) | | 7.84 | | 19.20 | | | 49,527 | | 1.00 | | 1.00 | | .62 | | | 40 |
| (.08 | ) | | 6.60 | | 14.79 | | | 44,600 | | .96 | | .96 | | 1.48 | | | 111 |
| (2.12 | ) | | 5.84 | | (45.86 | ) | | 54,530 | | .98 | | .98 | | 1.69 | | | 156 |
| (.90 | ) | | 13.13 | | 10.97 | | | 139,538 | | .94 | | .94 | | 1.21 | | | 128 |
| (.79 | ) | | 12.69 | | 18.47 | | | 131,494 | | .94 | | .94 | | 1.26 | | | 87 |
| (.14 | ) | | 11.46 | | 12.63 | | | 135,759 | | .86 | | .91 | | 1.14 | | | 85 |
| | | | | | | | | | | | | | | | | |
| (.02 | ) | | 7.82 | | 19.21 | | | 93,573 | | 1.08 | | 1.08 | | .55 | | | 40 |
| (.08 | ) | | 6.58 | | 14.75 | | | 89,214 | | 1.04 | | 1.04 | | 1.41 | | | 111 |
| (2.10 | ) | | 5.82 | | (45.98 | ) | | 111,600 | | 1.13 | | 1.13 | | 1.55 | | | 156 |
| (.88 | ) | | 13.10 | | 10.87 | | | 274,355 | | 1.05 | | 1.05 | | 1.10 | | | 128 |
| (.77 | ) | | 12.67 | | 18.32 | | | 253,586 | | 1.09 | | 1.10 | | 1.09 | | | 87 |
| (.12 | ) | | 11.44 | | 12.36 | | | 198,551 | | 1.07 | | 1.10 | | .95 | | | 85 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell U.S. Small & Mid Cap Fund | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.28 | | .01 | | | 4.24 | | | 4.25 | | | (.05 | ) | | — | | | — |
October 31, 2009 | | 14.95 | | .06 | | | 1.33 | | | 1.39 | | | (.06 | ) | | — | | | — |
October 31, 2008(5) | | 21.95 | | .03 | | | (7.02 | ) | | (7.00 | ) | | — | | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.18 | | (.05 | ) | | 4.20 | | | 4.15 | | | — | | | — | | | — |
October 31, 2009 | | 14.93 | | (.04 | ) | | 1.31 | | | 1.27 | | | (.02 | ) | | — | | | — |
October 31, 2008(5) | | 21.95 | | (.01 | ) | | (7.01 | ) | | (7.02 | ) | | — | | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.32 | | .03 | | | 4.23 | | | 4.26 | | | (.06 | ) | | — | | | — |
October 31, 2009 | | 14.95 | | .09 | | | 1.31 | | | 1.40 | | | (.03 | ) | | — | | | — |
October 31, 2008 | | 31.79 | | .13 | | | (11.98 | ) | | (11.85 | ) | | (.17 | ) | | (4.82 | ) | | — |
October 31, 2007 | | 34.16 | | .05 | | | 4.59 | | | 4.64 | | | — | | | (7.01 | ) | | — |
October 31, 2006 | | 38.43 | | .02 | | | 5.76 | | | 5.78 | | | — | | | (10.05 | ) | | — |
October 31, 2005 | | 39.28 | | (.04 | ) | | 4.44 | | | 4.40 | | | (.06 | ) | | (5.19 | ) | | — |
| Class I | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.43 | | .05 | | | 4.26 | | | 4.31 | | | (.09 | ) | | — | | | — |
October 31, 2009 | | 15.05 | | .12 | | | 1.32 | | | 1.44 | | | (.06 | ) | | — | | | — |
October 31, 2008 | | 31.98 | | .17 | | | (12.02 | ) | | (11.85 | ) | | (.26 | ) | | (4.82 | ) | | — |
October 31, 2007 | | 34.31 | | .12 | | | 4.60 | | | 4.72 | | | (.04 | ) | | (7.01 | ) | | — |
October 31, 2006 | | 38.57 | | .09 | | | 5.79 | | | 5.88 | | | (.09 | ) | | (10.05 | ) | | — |
October 31, 2005 | | 39.39 | | .04 | | | 4.45 | | | 4.49 | | | (.12 | ) | | (5.19 | ) | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.39 | | .04 | | | 4.24 | | | 4.28 | | | (.08 | ) | | — | | | — |
October 31, 2009 | | 15.03 | | .10 | | | 1.33 | | | 1.43 | | | (.07 | ) | | — | | | — |
October 31, 2008(5) | | 22.06 | | .03 | | | (7.06 | ) | | (7.03 | ) | | — | | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.39 | | .05 | | | 4.26 | | | 4.31 | | | (.11 | ) | | — | | | — |
October 31, 2009 | | 15.02 | | .12 | | | 1.33 | | | 1.45 | | | (.08 | ) | | — | | | — |
October 31, 2008 | | 31.98 | | .19 | | | (12.02 | ) | | (11.83 | ) | | (.31 | ) | | (4.82 | ) | | — |
October 31, 2007 | | 34.32 | | .15 | | | 4.59 | | | 4.74 | | | (.07 | ) | | (7.01 | ) | | — |
October 31, 2006 | | 38.58 | | .12 | | | 5.79 | | | 5.91 | | | (.12 | ) | | (10.05 | ) | | — |
October 31, 2005 | | 39.41 | | .07 | | | 4.45 | | | 4.52 | | | (.16 | ) | | (5.19 | ) | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.05 | ) | | 20.48 | | 26.13 | | | 12,668 | | 1.23 | | 1.23 | | .15 | | | 50 |
| (.06 | ) | | 16.28 | | 9.37 | | | 9,278 | | 1.24 | | 1.24 | | .40 | | | 153 |
| — | | | 14.95 | | (31.89 | ) | | 6,982 | | 1.37 | | 1.38 | | .47 | | | 163 |
| | | | | | | | | | | | | | | | | |
| — | | | 20.33 | | 25.65 | | | 35,999 | | 1.98 | | 1.98 | | (.59 | ) | | 50 |
| (.02 | ) | | 16.18 | | 8.51 | | | 30,345 | | 1.98 | | 1.98 | | (.28 | ) | | 153 |
| — | | | 14.93 | | (31.98 | ) | | 33,486 | | 2.11 | | 2.13 | | (.28 | ) | | 163 |
| | | | | | | | | | | | | | | | | |
| (.06 | ) | | 20.52 | | 26.14 | | | 37,841 | | 1.11 | | 1.23 | | .29 | | | 50 |
| (.03 | ) | | 16.32 | | 9.44 | | | 33,923 | | 1.10 | | 1.23 | | .61 | | | 153 |
| (4.99 | ) | | 14.95 | | (43.26 | ) | | 40,553 | | 1.17 | | 1.22 | | .60 | | | 163 |
| (7.01 | ) | | 31.79 | | 15.98 | | | 38,520 | | 1.13 | | 1.15 | | .17 | | | 143 |
| (10.05 | ) | | 34.16 | | 17.91 | | | 39,987 | | 1.11 | | 1.14 | | .07 | | | 155 |
| (5.25 | ) | | 38.43 | | 11.53 | | | 34,849 | | 1.08 | | 1.11 | | (.09 | ) | | 156 |
| | | | | | | | | | | | | | | | | |
| (.09 | ) | | 20.65 | | 26.33 | | | 251,145 | | .90 | | .90 | | .49 | | | 50 |
| (.06 | ) | | 16.43 | | 9.62 | | | 211,299 | | .91 | | .91 | | .82 | | | 153 |
| (5.08 | ) | | 15.05 | | (43.08 | ) | | 260,535 | | .97 | | .99 | | .77 | | | 163 |
| (7.05 | ) | | 31.98 | | 16.21 | | | 480,645 | | .93 | | .95 | | .38 | | | 143 |
| (10.14 | ) | | 34.31 | | 18.17 | | | 471,745 | | .91 | | .94 | | .27 | | | 155 |
| (5.31 | ) | | 38.57 | | 11.77 | | | 496,716 | | .87 | | .91 | | .12 | | | 156 |
| | | | | | | | | | | | | | | | | |
| (.08 | ) | | 20.59 | | 26.21 | | | 663,354 | | .98 | | .98 | | .41 | | | 50 |
| (.07 | ) | | 16.39 | | 9.58 | | | 530,812 | | .98 | | .99 | | .68 | | | 153 |
| — | | | 15.03 | | (31.87 | ) | | 475,057 | | 1.10 | | 1.11 | | .73 | | | 163 |
| | | | | | | | | | | | | | | | | |
| (.11 | ) | | 20.59 | | 26.38 | | | 631,970 | | .80 | | .80 | | .59 | | | 50 |
| (.08 | ) | | 16.39 | | 9.74 | | | 545,845 | | .81 | | .81 | | .87 | | | 153 |
| (5.13 | ) | | 15.02 | | (43.09 | ) | | 501,256 | | .92 | | .93 | | .97 | | | 163 |
| (7.08 | ) | | 31.98 | | 16.30 | | | 93,321 | | .83 | | .85 | | .47 | | | 143 |
| (10.17 | ) | | 34.32 | | 18.31 | | | 111,605 | | .82 | | .85 | | .36 | | | 155 |
| (5.35 | ) | | 38.58 | | 11.85 | | | 112,625 | | .81 | | .83 | | .18 | | | 156 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
Russell International Developed Markets Fund | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 29.09 | | .13 | | 1.16 | | | 1.29 | | | (.96 | ) | | — | | | — | |
October 31, 2009 | | 23.75 | | .40 | | 4.94 | | | 5.34 | | | — | | | — | | | — | |
October 31, 2008(5) | | 34.84 | | .07 | | (11.16 | ) | | (11.09 | ) | | — | | | — | | | — | |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 28.83 | | .02 | | 1.16 | | | 1.18 | | | (.75 | ) | | — | | | — | |
October 31, 2009 | | 23.73 | | .23 | | 4.87 | | | 5.10 | | | — | | | — | | | — | |
October 31, 2008(5) | | 34.84 | | .03 | | (11.14 | ) | | (11.11 | ) | | — | | | — | | | — | |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 29.12 | | .15 | | 1.16 | | | 1.31 | | | (.98 | ) | | — | | | — | |
October 31, 2009 | | 23.76 | | .46 | | 4.90 | | | 5.36 | | | — | | | — | | | — | |
October 31, 2008 | | 56.97 | | .76 | | (23.85 | ) | | (23.09 | ) | | (1.29 | ) | | (8.01 | ) | | (.82 | ) |
October 31, 2007 | | 50.51 | | .83 | | 12.10 | | | 12.93 | | | (1.41 | ) | | (5.06 | ) | | — | |
October 31, 2006 | | 40.45 | | .87 | | 9.87 | | | 10.74 | | | (.68 | ) | | — | | | — | |
October 31, 2005 | | 35.15 | | .57 | | 5.41 | | | 5.98 | | | (.68 | ) | | — | | | — | |
| Class I | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 29.16 | | .18 | | 1.18 | | | 1.36 | | | (1.06 | ) | | — | | | — | |
October 31, 2009 | | 23.74 | | .51 | | 4.91 | | | 5.42 | | | — | | | — | | | — | |
October 31, 2008 | | 57.01 | | .92 | | (23.89 | ) | | (22.97 | ) | | (1.41 | ) | | (8.01 | ) | | (.88 | ) |
October 31, 2007 | | 50.55 | | .95 | | 12.10 | | | 13.05 | | | (1.53 | ) | | (5.06 | ) | | — | |
October 31, 2006 | | 40.47 | | 1.00 | | 9.86 | | | 10.86 | | | (.78 | ) | | — | | | — | |
October 31, 2005 | | 35.16 | | .68 | | 5.39 | | | 6.07 | | | (.76 | ) | | — | | | — | |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 29.13 | | .17 | | 1.15 | | | 1.32 | | | (1.02 | ) | | — | | | — | |
October 31, 2009 | | 23.74 | | .48 | | 4.91 | | | 5.39 | | | — | | | — | | | — | |
October 31, 2008(5) | | 34.79 | | .11 | | (11.16 | ) | | (11.05 | ) | | — | | | — | | | — | |
| Class Y | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 29.18 | | .20 | | 1.17 | | | 1.37 | | | (1.07 | ) | | — | | | — | |
October 31, 2009 | | 23.74 | | .52 | | 4.92 | | | 5.44 | | | — | | | — | | | — | |
October 31, 2008 | | 57.03 | | .64 | | (23.60 | ) | | (22.96 | ) | | (1.42 | ) | | (8.01 | ) | | (.90 | ) |
October 31, 2007 | | 50.56 | | 1.01 | | 12.07 | | | 13.08 | | | (1.55 | ) | | (5.06 | ) | | — | |
October 31, 2006 | | 40.47 | | .92 | | 9.96 | | | 10.88 | | | (.79 | ) | | — | | | — | |
October 31, 2005 | | 35.17 | | .68 | | 5.40 | | | 6.08 | | | (.78 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.96 | ) | | 29.42 | | 4.50 | | | 22,169 | | 1.24 | | 1.24 | | .89 | | 40 |
| — | | | 29.09 | | 22.44 | | | 20,212 | | 1.25 | | 1.25 | | 1.63 | | 115 |
| — | | | 23.75 | | (31.83 | ) | | 14,638 | | 1.31 | | 1.32 | | 1.27 | | 100 |
| | | | | | | | | | | | | | | | |
| (.75 | ) | | 29.26 | | 4.14 | | | 74,048 | | 1.99 | | 1.99 | | .11 | | 40 |
| — | | | 28.83 | | 21.50 | | | 77,072 | | 2.00 | | 2.00 | | .94 | | 115 |
| — | | | 23.73 | | (31.92 | ) | | 78,972 | | 2.05 | | 2.06 | | .53 | | 100 |
| | | | | | | | | | | | | | | | |
| (.98 | ) | | 29.45 | | 4.57 | | | 92,014 | | 1.12 | | 1.24 | | 1.00 | | 40 |
| — | | | 29.12 | | 22.57 | | | 88,476 | | 1.12 | | 1.25 | | 1.88 | | 115 |
| (10.12 | ) | | 23.76 | | (48.26 | ) | | 83,902 | | 1.17 | | 1.22 | | 2.04 | | 100 |
| (6.47 | ) | | 56.97 | | 28.47 | | | 61,533 | | 1.16 | | 1.18 | | 1.64 | | 108 |
| (.68 | ) | | 50.51 | | 26.84 | | | 51,470 | | 1.17 | | 1.19 | | 1.88 | | 83 |
| (.68 | ) | | 40.45 | | 17.19 | | | 41,415 | | 1.15 | | 1.18 | | 1.49 | | 80 |
| | | | | | | | | | | | | | | | |
| (1.06 | ) | | 29.46 | | 4.72 | | | 925,163 | | .88 | | .91 | | 1.24 | | 40 |
| — | | | 29.16 | | 22.84 | | | 905,418 | | .87 | | .92 | | 2.08 | | 115 |
| (10.30 | ) | | 23.74 | | (48.14 | ) | | 882,731 | | .92 | | .95 | | 2.33 | | 100 |
| (6.59 | ) | | 57.01 | | 28.75 | | | 1,792,063 | | .91 | | .93 | | 1.87 | | 108 |
| (.78 | ) | | 50.55 | | 27.17 | | | 1,420,218 | | .91 | | .93 | | 2.15 | | 83 |
| (.76 | ) | | 40.47 | | 17.48 | | | 1,127,303 | | .90 | | .93 | | 1.76 | | 80 |
| | | | | | | | | | | | | | | | |
| (1.02 | ) | | 29.43 | | 4.65 | | | 1,526,883 | | .99 | | .99 | | 1.16 | | 40 |
| — | | | 29.13 | | 22.67 | | | 1,348,135 | | 1.00 | | 1.00 | | 1.94 | | 115 |
| — | | | 23.74 | | (31.79 | ) | | 1,052,420 | | 1.06 | | 1.08 | | 2.00 | | 100 |
| | | | | | | | | | | | | | | | |
| (1.07 | ) | | 29.48 | | 4.72 | | | 1,994,069 | | .82 | | .82 | | 1.34 | | 40 |
| — | | | 29.18 | | 22.87 | | | 1,789,118 | | .82 | | .82 | | 2.15 | | 115 |
| (10.33 | ) | | 23.74 | | (48.08 | ) | | 1,626,309 | | .88 | | .90 | | 1.89 | | 100 |
| (6.61 | ) | | 57.03 | | 28.85 | | | 360,175 | | .86 | | .88 | | 1.98 | | 108 |
| (.79 | ) | | 50.56 | | 27.24 | | | 378,505 | | .86 | | .89 | | 1.99 | | 83 |
| (.78 | ) | | 40.47 | | 17.53 | | | 587,751 | | .86 | | .89 | | 1.76 | | 80 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell Global Equity Fund | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.29 | | — | (d) | | .87 | | | .87 | | | (.09 | ) | | — | | | — |
October 31, 2009 | | 6.07 | | .07 | | | 1.23 | | | 1.30 | | | (.08 | ) | | — | | | — |
October 31, 2008 | | 11.37 | | .08 | | | (5.07 | ) | | (4.99 | ) | | (.12 | ) | | (.19 | ) | | — |
October 31, 2007(2) | | 10.00 | | .05 | | | 1.32 | | | 1.37 | | | — | | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.26 | | (.03 | ) | | .87 | | | .84 | | | (.03 | ) | | — | | | — |
October 31, 2009 | | 6.02 | | .04 | | | 1.21 | | | 1.25 | | | (.01 | ) | | — | | | — |
October 31, 2008 | | 11.31 | | .01 | | | (5.04 | ) | | (5.03 | ) | | (.07 | ) | | (.19 | ) | | — |
October 31, 2007(2) | | 10.00 | | — | (d) | | 1.31 | | | 1.31 | | | — | | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.30 | | .01 | | | .85 | | | .86 | | | (.08 | ) | | — | | | — |
October 31, 2009 | | 6.07 | | .08 | | | 1.22 | | | 1.30 | | | (.07 | ) | | — | | | — |
October 31, 2008 | | 11.37 | | .08 | | | (5.08 | ) | | (5.00 | ) | | (.11 | ) | | (.19 | ) | | — |
October 31, 2007(2) | | 10.00 | | .06 | | | 1.31 | | | 1.37 | | | — | | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.32 | | .02 | | | .86 | | | .88 | | | (.10 | ) | | — | | | — |
October 31, 2009 | | 6.09 | | .09 | | | 1.23 | | | 1.32 | | | (.09 | ) | | — | | | — |
October 31, 2008 | | 11.39 | | .10 | | | (5.08 | ) | | (4.98 | ) | | (.13 | ) | | (.19 | ) | | — |
October 31, 2007(2) | | 10.00 | | .08 | | | 1.31 | | | 1.39 | | | — | | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.32 | | .02 | | | .87 | | | .89 | | | (.11 | ) | | — | | | — |
October 31, 2009 | | 6.09 | | .11 | | | 1.21 | | | 1.32 | | | (.09 | ) | | — | | | — |
October 31, 2008(6) | | 8.61 | | — | (d) | | (2.07 | ) | | (2.07 | ) | | — | | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.09 | ) | | 8.07 | | 11.95 | | | 6,860 | | 1.49 | | 1.49 | | .07 | | | 39 |
| (.08 | ) | | 7.29 | | 21.82 | | | 4,612 | | 1.52 | | 1.52 | | 1.15 | | | 127 |
| (.31 | ) | | 6.07 | | (45.03 | ) | | 2,382 | | 1.55 | | 1.55 | | .82 | | | 160 |
| — | | | 11.37 | | 13.70 | | | 2,445 | | 1.58 | | 1.58 | | .77 | | | 62 |
| | | | | | | | | | | | | | | | | |
| (.03 | ) | | 8.07 | | 11.61 | | | 11,463 | | 2.24 | | 2.24 | | (.69 | ) | | 39 |
| (.01 | ) | | 7.26 | | 20.82 | | | 8,672 | | 2.26 | | 2.26 | | .61 | | | 127 |
| (.26 | ) | | 6.02 | | (45.45 | ) | | 2 | | 2.30 | | 2.30 | | .07 | | | 160 |
| — | | | 11.31 | | 13.10 | | | 10,802 | | 2.33 | | 2.33 | | (.04 | ) | | 62 |
| | | | | | | | | | | | | | | | | |
| (.08 | ) | | 8.08 | | 11.88 | | | 31,612 | | 1.49 | | 1.49 | | .20 | | | 39 |
| (.07 | ) | | 7.30 | | 21.77 | | | 14,492 | | 1.51 | | 1.51 | | 1.28 | | | 127 |
| (.30 | ) | | 6.07 | | (45.07 | ) | | 10,096 | | 1.55 | | 1.55 | | .81 | | | 160 |
| — | | | 11.37 | | 13.70 | | | 15,683 | | 1.58 | | 1.58 | | .90 | | | 62 |
| | | | | | | | | | | | | | | | | |
| (.10 | ) | | 8.10 | | 12.08 | | | 769,972 | | 1.24 | | 1.24 | | .40 | | | 39 |
| (.09 | ) | | 7.32 | | 22.07 | | | 426,936 | | 1.26 | | 1.26 | | 1.53 | | | 127 |
| (.32 | ) | | 6.09 | | (44.87 | ) | | 306,198 | | 1.30 | | 1.30 | | 1.09 | | | 160 |
| — | | | 11.39 | | 13.90 | | | 1,128,142 | | 1.33 | | 1.33 | | 1.12 | | | 62 |
| | | | | | | | | | | | | | | | | |
| (.11 | ) | | 8.10 | | 12.08 | | | 1,037,672 | | 1.06 | | 1.06 | | .63 | | | 39 |
| (.09 | ) | | 7.32 | | 22.35 | | | 507,772 | | 1.09 | | 1.09 | | 1.81 | | | 127 |
| — | | | 6.09 | | (25.37 | ) | | 466,235 | | 1.22 | | 1.22 | | .52 | | | 160 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell Emerging Markets Fund | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.44 | | .01 | | | 2.37 | | | 2.38 | | | (.44 | ) | | — | | | — |
October 31, 2009 | | 10.59 | | .08 | | | 6.27 | | | 6.35 | | | — | | | (.50 | ) | | — |
October 31, 2008 | | 30.85 | | .42 | | | (14.73 | ) | | (14.31 | ) | | (.73 | ) | | (5.22 | ) | | — |
October 31, 2007(3) | | 20.50 | | .14 | | | 10.21 | | | 10.35 | | | — | | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 15.53 | | (.05 | ) | | 2.25 | | | 2.20 | | | (.34 | ) | | — | | | — |
October 31, 2009 | | 10.11 | | (.01 | ) | | 5.93 | | | 5.92 | | | — | | | (.50 | ) | | — |
October 31, 2008 | | 29.66 | | .22 | | | (14.06 | ) | | (13.84 | ) | | (.49 | ) | | (5.22 | ) | | — |
October 31, 2007 | | 21.17 | | (.02 | ) | | 11.80 | | | 11.78 | | | (.25 | ) | | (3.04 | ) | | |
October 31, 2006 | | 16.73 | | .01 | | | 5.14 | | | 5.15 | | | (.28 | ) | | (.43 | ) | | — |
October 31, 2005 | | 12.52 | | .04 | | | 4.22 | | | 4.26 | | | (.05 | ) | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.47 | | .01 | | | 2.37 | | | 2.38 | | | (.44 | ) | | — | | | — |
October 31, 2009 | | 10.61 | | .08 | | | 6.28 | | | 6.36 | | | — | | | (.50 | ) | | — |
October 31, 2008 | | 30.84 | | .38 | | | (14.71 | ) | | (14.33 | ) | | (.68 | ) | | (5.22 | ) | | — |
October 31, 2007 | | 21.89 | | .16 | | | 12.24 | | | 12.40 | | | (.41 | ) | | (3.04 | ) | | — |
October 31, 2006 | | 17.25 | | .17 | | | 5.29 | | | 5.46 | | | (.39 | ) | | (.43 | ) | | — |
October 31, 2005 | | 12.93 | | .16 | | | 4.34 | | | 4.50 | | | (.18 | ) | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.52 | | .03 | | | 2.39 | | | 2.42 | | | (.47 | ) | | — | | | — |
October 31, 2009 | | 10.62 | | .11 | | | 6.29 | | | 6.40 | | | — | | | (.50 | ) | | — |
October 31, 2008 | | 30.86 | | .44 | | | (14.72 | ) | | (14.28 | ) | | (.74 | ) | | (5.22 | ) | | — |
October 31, 2007 | | 21.91 | | .22 | | | 12.23 | | | 12.45 | | | (.46 | ) | | (3.04 | ) | | — |
October 31, 2006 | | 17.25 | | .21 | | | 5.31 | | | 5.52 | | | (.43 | ) | | (.43 | ) | | — |
October 31, 2005 | | 12.94 | | .20 | | | 4.34 | | | 4.54 | | | (.23 | ) | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 16.55 | | .05 | | | 2.38 | | | 2.43 | | | (.49 | ) | | — | | | — |
October 31, 2009 | | 10.62 | | .13 | | | 6.30 | | | 6.43 | | | — | | | (.50 | ) | | — |
October 31, 2008(6) | | 15.72 | | .01 | | | (5.11 | ) | | (5.10 | ) | | — | | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.44 | ) | | 18.38 | | 14.68 | | | 16,234 | | 1.77 | | 1.77 | | .15 | | | 32 |
| (.50 | ) | | 16.44 | | 62.81 | | | 11,624 | | 1.78 | | 1.78 | | .66 | | | 77 |
| (5.95 | ) | | 10.59 | | (56.41 | ) | | 7,595 | | 1.92 | | 1.92 | | 2.15 | | | 65 |
| — | | | 30.85 | | 50.49 | | | 3,537 | | 1.88 | | 1.89 | | .86 | | | 67 |
| | | | | | | | | | | | | | | | | |
| (.34 | ) | | 17.39 | | 14.26 | | | 39,814 | | 2.51 | | 2.51 | | (.63 | ) | | 32 |
| (.50 | ) | | 15.53 | | 61.74 | | | 34,286 | | 2.53 | | 2.54 | | (.11 | ) | | 77 |
| (5.71 | ) | | 10.11 | | (56.77 | ) | | 25,058 | | 2.66 | | 2.66 | | 1.12 | | | 65 |
| (3.29 | ) | | 29.66 | | 63.90 | | | 66,707 | | 2.63 | | 2.64 | | (.07 | ) | | 67 |
| (.71 | ) | | 21.17 | | 31.63 | | | 44,977 | | 2.68 | | 2.68 | | .07 | | | 69 |
| (.05 | ) | | 16.73 | | 33.98 | | | 33,961 | | 2.74 | | 2.76 | | .29 | | | 72 |
| | | | | | | | | | | | | | | | | |
| (.44 | ) | | 18.41 | | 14.67 | | | 33,979 | | 1.76 | | 1.76 | | .10 | | | 32 |
| (.50 | ) | | 16.47 | | 62.78 | | | 28,078 | | 1.78 | | 1.78 | | .66 | | | 77 |
| (5.90 | ) | | 10.61 | | (56.41 | ) | | 17,976 | | 1.91 | | 1.91 | | 1.86 | | | 65 |
| (3.45 | ) | | 30.84 | | 65.17 | | | 41,911 | | 1.88 | | 1.89 | | .68 | | | 67 |
| (.82 | ) | | 21.89 | | 32.64 | | | 27,862 | | 1.93 | | 1.93 | | .83 | | | 69 |
| (.18 | ) | | 17.25 | | 34.94 | | | 18,855 | | 1.99 | | 2.01 | | 1.02 | | | 72 |
| | | | | | | | | | | | | | | | | |
| (.47 | ) | | 18.47 | | 14.80 | | | 903,634 | | 1.51 | | 1.51 | | .37 | | | 32 |
| (.50 | ) | | 16.52 | | 63.37 | | | 788,455 | | 1.53 | | 1.53 | | .91 | | | 77 |
| (5.96 | ) | | 10.62 | | (56.33 | ) | | 520,064 | | 1.65 | | 1.65 | | 2.15 | | | 65 |
| (3.50 | ) | | 30.86 | | 65.53 | | | 1,760,393 | | 1.63 | | 1.64 | | .94 | | | 67 |
| (.86 | ) | | 21.91 | | 33.04 | | | 1,092,083 | | 1.68 | | 1.68 | | 1.06 | | | 69 |
| (.23 | ) | | 17.25 | | 35.27 | | | 794,086 | | 1.73 | | 1.76 | | 1.30 | | | 72 |
| | | | | | | | | | | | | | | | | |
| (.49 | ) | | 18.49 | | 14.87 | | | 395,810 | | 1.34 | | 1.34 | | .53 | | | 32 |
| (.50 | ) | | 16.55 | | 63.67 | | | 355,564 | | 1.36 | | 1.36 | | 1.10 | | | 77 |
| — | | | 10.62 | | (32.44 | ) | | 305,585 | | 1.63 | | 1.63 | | 1.06 | | | 65 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell Tax-Managed U.S. Large Cap Fund | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 15.16 | | (.04 | ) | | 2.50 | | | 2.46 | | | — | | | — | | | — |
October 31, 2009 | | 13.55 | | .01 | | | 1.61 | | | 1.62 | | | (.01 | ) | | — | | | — |
October 31, 2008 | | 22.78 | | (.01 | ) | | (9.22 | ) | | (9.23 | ) | | — | | | — | | | — |
October 31, 2007 | | 19.62 | | (.06 | ) | | 3.22 | | | 3.16 | | | — | | | — | | | — |
October 31, 2006 | | 17.68 | | (.02 | ) | | 1.96 | | | 1.94 | | | — | | | — | | | — |
October 31, 2005 | | 16.55 | | .01 | | | 1.14 | | | 1.15 | | | (.02 | ) | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 15.54 | | .02 | | | 2.57 | | | 2.59 | | | (.08 | ) | | — | | | — |
October 31, 2009 | | 13.96 | | .10 | | | 1.64 | | | 1.74 | | | (.16 | ) | | — | | | — |
October 31, 2008 | | 23.41 | | .14 | | | (9.48 | ) | | (9.34 | ) | | (.11 | ) | | — | | | — |
October 31, 2007 | | 20.12 | | .10 | | | 3.31 | | | 3.41 | | | (.12 | ) | | — | | | — |
October 31, 2006 | | 18.09 | | .11 | | | 2.02 | | | 2.13 | | | (.10 | ) | | — | | | — |
October 31, 2005 | | 16.93 | | .15 | | | 1.15 | | | 1.30 | | | (.14 | ) | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 15.61 | | .04 | | | 2.57 | | | 2.61 | | | (.11 | ) | | — | | | — |
October 31, 2009 | | 14.03 | | .14 | | | 1.64 | | | 1.78 | | | (.20 | ) | | — | | | — |
October 31, 2008 | | 23.52 | | .19 | | | (9.52 | ) | | (9.33 | ) | | (.16 | ) | | — | | | — |
October 31, 2007 | | 20.21 | | .15 | | | 3.32 | | | 3.47 | | | (.16 | ) | | — | | | — |
October 31, 2006 | | 18.16 | | .17 | | | 2.02 | | | 2.19 | | | (.14 | ) | | — | | | — |
October 31, 2005 | | 16.99 | | .20 | | | 1.15 | | | 1.35 | | | (.18 | ) | | — | | | — |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.62 | | (.05 | ) | | 2.49 | | | 2.44 | | | — | | | — | | | — |
October 31, 2009 | | 8.69 | | (.06 | ) | | .99 | | | .93 | | | — | | | — | | | — |
October 31, 2008 | | 15.07 | | (.07 | ) | | (5.09 | ) | | (5.16 | ) | | — | | | (1.22 | ) | | — |
October 31, 2007 | | 13.22 | | (.13 | ) | | 2.18 | | | 2.05 | | | — | | | (.20 | ) | | — |
October 31, 2006 | | 11.59 | | (.14 | ) | | 1.77 | | | 1.63 | | | — | | | — | | | — |
October 31, 2005 | | 10.17 | | (.12 | ) | | 1.54 | | | 1.42 | | | — | | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.38 | | (.01 | ) | | 2.69 | | | 2.68 | | | — | | | — | | | — |
October 31, 2009 | | 9.37 | | — | (d) | | 1.06 | | | 1.06 | | | (.05 | ) | | — | | | — |
October 31, 2008 | | 16.03 | | .01 | | | (5.45 | ) | | (5.44 | ) | | — | | | (1.22 | ) | | — |
October 31, 2007 | | 13.93 | | (.03 | ) | | 2.33 | | | 2.30 | | | — | | | (.20 | ) | | — |
October 31, 2006 | | 12.13 | | (.05 | ) | | 1.85 | | | 1.80 | | | — | | | — | | | — |
October 31, 2005 | | 10.56 | | (.04 | ) | | 1.61 | | | 1.57 | | | — | | | — | | | — |
| Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.58 | | — | (d) | | 2.74 | | | 2.74 | | | (.01 | ) | | — | | | — |
October 31, 2009 | | 9.56 | | .03 | | | 1.07 | | | 1.10 | | | (.08 | ) | | — | | | — |
October 31, 2008 | | 16.30 | | .05 | | | (5.56 | ) | | (5.51 | ) | | (.01 | ) | | (1.22 | ) | | — |
October 31, 2007 | | 14.13 | | .01 | | | 2.36 | | | 2.37 | | | — | | | (.20 | ) | | — |
October 31, 2006 | | 12.27 | | (.01 | ) | | 1.87 | | | 1.86 | | | — | | | — | | | — |
October 31, 2005 | | 10.65 | | (.01 | ) | | 1.63 | | | 1.62 | | | — | | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| — | | | 17.62 | | 16.23 | | | 13,613 | | 1.91 | | 1.99 | | (.53 | ) | | 20 |
| (.01 | ) | | 15.16 | | 11.98 | | | 12,383 | | 1.92 | | 2.00 | | .05 | | | 56 |
| — | | | 13.55 | | (40.52 | ) | | 13,387 | | 1.92 | | 1.94 | | (.04 | ) | | 54 |
| — | | | 22.78 | | 16.11 | | | 21,692 | | 1.92 | | 1.92 | | (.30 | ) | | 50 |
| — | | | 19.62 | | 10.97 | | | 19,112 | | 1.92 | | 1.92 | | (.13 | ) | | 61 |
| (.02 | ) | | 17.68 | | 6.94 | | | 16,955 | | 1.91 | | 1.91 | | .08 | | | 43 |
| | | | | | | | | | | | | | | | | |
| (.08 | ) | | 18.05 | | 16.71 | | | 17,590 | | 1.16 | | 1.24 | | .22 | | | 20 |
| (.16 | ) | | 15.54 | | 12.74 | | | 14,488 | | 1.17 | | 1.25 | | .74 | | | 56 |
| (.11 | ) | | 13.96 | | 1.64 | | | 12,645 | | 1.18 | | 1.19 | | .71 | | | 54 |
| (.12 | ) | | 23.41 | | 17.01 | | | 16,891 | | 1.17 | | 1.17 | | .45 | | | 50 |
| (.10 | ) | | 20.12 | | 11.82 | | | 12,726 | | 1.17 | | 1.17 | | .60 | | | 61 |
| (.14 | ) | | 18.09 | | 7.72 | | | 8,695 | | 1.16 | | 1.16 | | .84 | | | 43 |
| | | | | | | | | | | | | | | | | |
| (.11 | ) | | 18.11 | | 16.81 | | | 358,208 | | .91 | | .99 | | .47 | | | 20 |
| (.20 | ) | | 15.61 | | 13.07 | | | 314,574 | | .92 | | 1.00 | | 1.03 | | | 56 |
| (.16 | ) | | 14.03 | | (39.91 | ) | | 331,605 | | .93 | | .94 | | .97 | | | 54 |
| (.16 | ) | | 23.52 | | 17.28 | | | 572,138 | | .92 | | .92 | | .70 | | | 50 |
| (.14 | ) | | 20.21 | | 12.12 | | | 458,002 | | .92 | | .92 | | .87 | | | 61 |
| (.18 | ) | | 18.16 | | 7.98 | | | 386,605 | | .90 | | .91 | | 1.12 | | | 43 |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| — | | | 12.06 | | 25.36 | | | 8,321 | | 2.23 | | 2.34 | | (.95 | ) | | 39 |
| — | | | 9.62 | | 10.57 | | | 7,033 | | 2.21 | | 2.36 | | (.69 | ) | | 55 |
| (1.22 | ) | | 8.69 | | (36.71 | ) | | 8,653 | | 2.23 | | 2.34 | | (.63 | ) | | 72 |
| (.20 | ) | | 15.07 | | 15.70 | | | 14,088 | | 2.25 | | 2.30 | | (.93 | ) | | 57 |
| — | | | 13.22 | | 14.06 | | | 11,975 | | 2.25 | | 2.35 | | (1.09 | ) | | 54 |
| — | | | 11.59 | | 13.96 | | | 9,295 | | 2.24 | | 2.37 | | (1.06 | ) | | 58 |
| | | | | | | | | | | | | | | | | |
| — | | | 13.06 | | 25.72 | | | 3,611 | | 1.48 | | 1.59 | | (.20 | ) | | 39 |
| (.05 | ) | | 10.38 | | 11.48 | | | 2,794 | | 1.46 | | 1.60 | | (.02 | ) | | 55 |
| (1.22 | ) | | 9.37 | | (36.29 | ) | | 2,570 | | 1.48 | | 1.59 | | .11 | | | 72 |
| (.20 | ) | | 16.03 | | 16.70 | | | 3,654 | | 1.50 | | 1.55 | | (.19 | ) | | 57 |
| — | | | 13.93 | | 14.84 | | | 2,523 | | 1.50 | | 1.60 | | (.34 | ) | | 54 |
| — | | | 12.13 | | 14.87 | | | 1,663 | | 1.48 | | 1.62 | | (.32 | ) | | 58 |
| | | | | | | | | | | | | | | | | |
| (.01 | ) | | 13.31 | | 25.92 | | | 142,769 | | 1.23 | | 1.34 | | .05 | | | 39 |
| (.08 | ) | | 10.58 | | 11.74 | | | 119,802 | | 1.22 | | 1.36 | | .29 | | | 55 |
| (1.23 | ) | | 9.56 | | (36.14 | ) | | 143,039 | | 1.23 | | 1.34 | | .37 | | | 72 |
| (.20 | ) | | 16.30 | | 16.97 | | | 265,807 | | 1.25 | | 1.30 | | .07 | | | 57 |
| — | | | 14.13 | | 15.16 | | | 198,081 | | 1.25 | | 1.35 | | (.09 | ) | | 54 |
| — | | | 12.27 | | 15.21 | | | 156,596 | | 1.22 | | 1.38 | | (.06 | ) | | 58 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell Strategic Bond Fund | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.37 | | .20 | | .47 | | | .67 | | | (.23 | ) | | — | | | — |
October 31, 2009 | | 9.23 | | .47 | | 1.19 | | | 1.66 | | | (.48 | ) | | (.04 | ) | | — |
October 31, 2008(5) | | 9.99 | | .08 | | (.82 | ) | | (.74 | ) | | (.02 | ) | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.37 | | .16 | | .48 | | | .64 | | | (.19 | ) | | — | | | — |
October 31, 2009 | | 9.23 | | .40 | | 1.19 | | | 1.59 | | | (.41 | ) | | (.04 | ) | | — |
October 31, 2008(5) | | 9.99 | | .06 | | (.80 | ) | | (.74 | ) | | (.02 | ) | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.31 | | .21 | | .46 | | | .67 | | | (.23 | ) | | — | | | — |
October 31, 2009 | | 9.18 | | .48 | | 1.18 | | | 1.66 | | | (.49 | ) | | (.04 | ) | | — |
October 31, 2008 | | 10.53 | | .49 | | (1.33 | ) | | (.84 | ) | | (.51 | ) | | — | | | — |
October 31, 2007 | | 10.48 | | .50 | | .01 | | | .51 | | | (.46 | ) | | — | | | — |
October 31, 2006 | | 10.44 | | .45 | | .04 | | | .49 | | | (.42 | ) | | (.03 | ) | | — |
October 31, 2005 | | 10.70 | | .35 | | (.21 | ) | | .14 | | | (.32 | ) | | (.08 | ) | | — |
| Class I | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.28 | | .22 | | .47 | | | .69 | | | (.25 | ) | | — | | | — |
October 31, 2009 | | 9.16 | | .51 | | 1.16 | | | 1.67 | | | (.51 | ) | | (.04 | ) | | — |
October 31, 2008 | | 10.51 | | .52 | | (1.33 | ) | | (.81 | ) | | (.54 | ) | | — | | | — |
October 31, 2007 | | 10.46 | | .52 | | .02 | | | .54 | | | (.49 | ) | | — | | | — |
October 31, 2006 | | 10.43 | | .47 | | .03 | | | .50 | | | (.44 | ) | | (.03 | ) | | — |
October 31, 2005 | | 10.69 | | .38 | | (.22 | ) | | .16 | | | (.34 | ) | | (.08 | ) | | — |
| Class S | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.39 | | .22 | | .47 | | | .69 | | | (.24 | ) | | — | | | — |
October 31, 2009 | | 9.24 | | .50 | | 1.19 | | | 1.69 | | | (.50 | ) | | (.04 | ) | | — |
October 31, 2008(5) | | 9.98 | | .08 | | (.80 | ) | | (.72 | ) | | (.02 | ) | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 10.29 | | .22 | | .47 | | | .69 | | | (.25 | ) | | — | | | — |
October 31, 2009 | | 9.16 | | .51 | | 1.17 | | | 1.68 | | | (.51 | ) | | (.04 | ) | | — |
October 31, 2008 | | 10.51 | | .51 | | (1.32 | ) | | (.81 | ) | | (.54 | ) | | — | | | — |
October 31, 2007 | | 10.46 | | .52 | | .02 | | | .54 | | | (.49 | ) | | — | | | — |
October 31, 2006 | | 10.43 | | .64 | | (.13 | ) | | .51 | | | (.45 | ) | | (.03 | ) | | — |
October 31, 2005(1) | | 10.74 | | .14 | | (.26 | ) | | (.12 | ) | | (.19 | ) | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.23 | ) | | 10.81 | | 6.64 | | | 47,826 | | .95 | | 1.02 | | 3.92 | | 102 |
| (.52 | ) | | 10.37 | | 18.62 | | | 40,181 | | .96 | | 1.03 | | 4.99 | | 154 |
| (.02 | ) | | 9.23 | | (7.42 | ) | | 22,437 | | .93 | | 1.07 | | 4.40 | | 131 |
| | | | | | | | | | | | | | | | |
| (.19 | ) | | 10.82 | | 6.23 | | | 110,726 | | 1.70 | | 1.77 | | 3.15 | | 102 |
| (.45 | ) | | 10.37 | | 17.97 | | | 108,353 | | 1.67 | | 1.78 | | 4.28 | | 154 |
| (.02 | ) | | 9.23 | | (7.54 | ) | | 97,063 | | 1.68 | | 1.82 | | 3.63 | | 131 |
| | | | | | | | | | | | | | | | |
| (.23 | ) | | 10.75 | | 6.73 | | | 149,134 | | .85 | | 1.02 | | 3.99 | | 102 |
| (.53 | ) | | 10.31 | | 18.87 | | | 146,696 | | .81 | | 1.03 | | 5.14 | | 154 |
| (.51 | ) | | 9.18 | | (8.45 | ) | | 135,857 | | .88 | | 1.00 | | 4.79 | | 131 |
| (.46 | ) | | 10.53 | | 4.99 | | | 18,101 | | .93 | | .96 | | 4.69 | | 698 |
| (.45 | ) | | 10.48 | | 4.81 | | | 15,119 | | .92 | | .96 | | 4.27 | | 270 |
| (.40 | ) | | 10.44 | | 1.37 | | | 9,268 | | .93 | | .95 | | 3.32 | | 198 |
| | | | | | | | | | | | | | | | |
| (.25 | ) | | 10.72 | | 6.78 | | | 1,377,245 | | .60 | | .69 | | 4.24 | | 102 |
| (.55 | ) | | 10.28 | | 19.21 | | | 1,306,502 | | .56 | | .70 | | 5.39 | | 154 |
| (.54 | ) | | 9.16 | | (8.26 | ) | | 1,330,676 | | .66 | | .69 | | 5.10 | | 131 |
| (.49 | ) | | 10.51 | | 5.27 | | | 1,415,575 | | .67 | | .70 | | 4.97 | | 698 |
| (.47 | ) | | 10.46 | | 4.95 | | | 744,559 | | .70 | | .73 | | 4.51 | | 270 |
| (.42 | ) | | 10.43 | | 1.65 | | | 560,896 | | .69 | | .71 | | 3.55 | | 198 |
| | | | | | | | | | | | | | | | |
| (.24 | ) | | 10.84 | | 6.75 | | | 2,404,515 | | .70 | | .77 | | 4.15 | | 102 |
| (.54 | ) | | 10.39 | | 19.12 | | | 2,173,609 | | .67 | | .78 | | 5.26 | | 154 |
| (.02 | ) | | 9.24 | | (7.23 | ) | | 1,915,099 | | .69 | | .82 | | 4.33 | | 131 |
| | | | | | | | | | | | | | | | |
| (.25 | ) | | 10.73 | | 6.91 | | | 3,479,398 | | .54 | | .59 | | 4.30 | | 102 |
| (.55 | ) | | 10.29 | | 19.13 | | | 3,526,522 | | .52 | | .60 | | 5.42 | | 154 |
| (.54 | ) | | 9.16 | | (8.11 | ) | | 3,166,974 | | .55 | | .66 | | 5.20 | | 131 |
| (.49 | ) | | 10.51 | | 5.30 | | | 134,926 | | .63 | | .66 | | 5.01 | | 698 |
| (.48 | ) | | 10.46 | | 5.03 | | | 101,240 | | .63 | | .67 | | 4.60 | | 270 |
| (.19 | ) | | 10.43 | | (1.15 | ) | | 40,259 | | .64 | | .67 | | 3.74 | | 198 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell Investment Grade Bond Fund | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.31 | | .22 | | .63 | | | .85 | | | (.31 | ) | | (.09 | ) | | — |
October 31, 2009 | | 18.68 | | .67 | | 2.67 | | | 3.34 | | | (.71 | ) | | — | | | — |
October 31, 2008 | | 20.76 | | .72 | | (2.00 | ) | | (1.28 | ) | | (.80 | ) | | — | | | — |
October 31, 2007(4) | | 20.76 | | .08 | | (.08 | ) | | — | | | — | | | — | | | — |
| Class E | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.38 | | .31 | | .64 | | | .95 | | | (.40 | ) | | (.09 | ) | | — |
October 31, 2009 | | 18.70 | | .84 | | 2.67 | | | 3.51 | | | (.83 | ) | | — | | | — |
October 31, 2008 | | 20.77 | | .92 | | (2.00 | ) | | (1.08 | ) | | (.99 | ) | | — | | | — |
October 31, 2007 | | 20.82 | | .96 | | (.02 | ) | | .94 | | | (.99 | ) | | — | | | — |
October 31, 2006 | | 20.75 | | .92 | | .04 | | | .96 | | | (.89 | ) | | — | | | — |
October 31, 2005 | | 21.88 | | .74 | | (.61 | ) | | .13 | | | (.73 | ) | | (.53 | ) | | — |
| Class I | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.39 | | .34 | | .63 | | | .97 | | | (.43 | ) | | (.09 | ) | | — |
October 31, 2009 | | 18.69 | | .89 | | 2.68 | | | 3.57 | | | (.87 | ) | | — | | | — |
October 31, 2008 | | 20.76 | | .97 | | (2.00 | ) | | (1.03 | ) | | (1.04 | ) | | — | | | — |
October 31, 2007 | | 20.82 | | 1.04 | | (.06 | ) | | .98 | | | (1.04 | ) | | — | | | — |
October 31, 2006 | | 20.75 | | .97 | | .05 | | | 1.02 | | | (.95 | ) | | — | | | — |
October 31, 2005 | | 21.87 | | .80 | | (.61 | ) | | .19 | | | (.78 | ) | | (.53 | ) | | — |
| Class S | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.38 | | .30 | | .65 | | | .95 | | | (.41 | ) | | (.09 | ) | | — |
October 31, 2009 | | 18.69 | | .86 | | 2.68 | | | 3.54 | | | (.85 | ) | | — | | | — |
October 31, 2008 | | 20.76 | | .95 | | (2.01 | ) | | (1.06 | ) | | (1.01 | ) | | — | | | — |
October 31, 2007(4) | | 20.75 | | .01 | | — | | | .01 | | | — | | | — | | | — |
| Class Y | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.40 | | .33 | | .64 | | | .97 | | | (.43 | ) | | (.09 | ) | | — |
October 31, 2009 | | 18.70 | | .90 | | 2.68 | | | 3.58 | | | (.88 | ) | | — | | | — |
October 31, 2008 | | 20.77 | | .98 | | (2.00 | ) | | (1.02 | ) | | (1.05 | ) | | — | | | — |
October 31, 2007 | | 20.83 | | 1.04 | | (.05 | ) | | .99 | | | (1.05 | ) | | — | | | — |
October 31, 2006 | | 20.76 | | .99 | | .04 | | | 1.03 | | | (.96 | ) | | — | | | — |
October 31, 2005 | | 21.88 | | .80 | | (.61 | ) | | .19 | | | (.78 | ) | | (.53 | ) | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.40 | ) | | 21.76 | | 4.09 | | | 37,586 | | 1.54 | | 1.54 | | 2.10 | | 70 |
| (.71 | ) | | 21.31 | | 18.25 | | | 34,706 | | 1.55 | | 1.55 | | 3.37 | | 87 |
| (.80 | ) | | 18.68 | | (6.47 | ) | | 29,741 | | 1.60 | | 1.63 | | 3.54 | | 105 |
| — | | | 20.76 | | — | | | 35,689 | | 1.60 | | 1.62 | | 4.21 | | 199 |
| | | | | | | | | | | | | | | | |
| (.49 | ) | | 21.84 | | 4.52 | | | 56,467 | | .67 | | .79 | | 2.96 | | 70 |
| (.83 | ) | | 21.38 | | 19.38 | | | 43,414 | | .67 | | .80 | | 4.25 | | 87 |
| (.99 | ) | | 18.70 | | (5.57 | ) | | 48,193 | | .67 | | .71 | | 4.48 | | 105 |
| (.99 | ) | | 20.77 | | 4.64 | | | 53,663 | | .65 | | .67 | | 4.76 | | 199 |
| (.89 | ) | | 20.82 | | 4.79 | | | 31,504 | | .64 | | .67 | | 4.45 | | 125 |
| (1.26 | ) | | 20.75 | | .60 | | | 29,632 | | .65 | | .68 | | 3.49 | | 202 |
| | | | | | | | | | | | | | | | |
| (.52 | ) | | 21.84 | | 4.65 | | | 405,794 | | .43 | | .46 | | 3.23 | | 70 |
| (.87 | ) | | 21.39 | | 19.61 | | | 392,070 | | .42 | | .47 | | 4.49 | | 87 |
| (1.04 | ) | | 18.69 | | (5.29 | ) | | 406,332 | | .41 | | .44 | | 4.74 | | 105 |
| (1.04 | ) | | 20.76 | | 4.85 | | | 689,651 | | .40 | | .42 | | 4.99 | | 199 |
| (.95 | ) | | 20.82 | | 5.06 | | | 829,914 | | .40 | | .42 | | 4.70 | | 125 |
| (1.31 | ) | | 20.75 | | .88 | | | 788,808 | | .38 | | .40 | | 3.76 | | 202 |
| | | | | | | | | | | | | | | | |
| (.50 | ) | | 21.83 | | 4.60 | | | 357,829 | | .54 | | .54 | | 2.86 | | 70 |
| (.85 | ) | | 21.38 | | 19.50 | | | 125,051 | | .55 | | .55 | | 4.37 | | 87 |
| (1.01 | ) | | 18.69 | | (5.46 | ) | | 133,108 | | .54 | | .57 | | 4.61 | | 105 |
| — | | | 20.76 | | .05 | | | 226,995 | | .53 | | .55 | | 5.30 | | 199 |
| | | | | | | | | | | | | | | | |
| (.52 | ) | | 21.85 | | 4.67 | | | 780,304 | | .36 | | .36 | | 3.10 | | 70 |
| (.88 | ) | | 21.40 | | 19.63 | | | 364,142 | | .38 | | .38 | | 4.55 | | 87 |
| (1.05 | ) | | 18.70 | | (5.24 | ) | | 480,605 | | .37 | | .40 | | 4.78 | | 105 |
| (1.05 | ) | | 20.77 | | 4.90 | | | 609,683 | | .36 | | .38 | | 5.04 | | 199 |
| (.96 | ) | | 20.83 | | 5.11 | | | 550,383 | | .35 | | .38 | | 4.77 | | 125 |
| (1.31 | ) | | 20.76 | | .91 | | | 398,882 | | .35 | | .37 | | 3.81 | | 202 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Russell Short Duration Bond Fund | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 18.86 | | .22 | | .38 | | | .60 | | | (.30 | ) | | — | | | — |
October 31, 2009 | | 17.22 | | .64 | | 1.64 | | | 2.28 | | | (.64 | ) | | — | | | — |
October 31, 2008 | | 18.81 | | .74 | | (1.55 | ) | | (.81 | ) | | (.78 | ) | | — | | | — |
October 31, 2007(3) | | 18.71 | | .49 | | .09 | | | .58 | | | (.48 | ) | | — | | | — |
| Class C | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 18.79 | | .15 | | .39 | | | .54 | | | (.23 | ) | | — | | | — |
October 31, 2009 | | 17.17 | | .50 | | 1.64 | | | 2.14 | | | (.52 | ) | �� | — | | | — |
October 31, 2008 | | 18.76 | | .60 | | (1.55 | ) | | (.95 | ) | | (.64 | ) | | — | | | — |
October 31, 2007 | | 18.66 | | .59 | | .14 | | | .73 | | | (.63 | ) | | — | | | — |
October 31, 2006 | | 18.63 | | .50 | | .03 | | | .53 | | | (.50 | ) | | — | | | — |
October 31, 2005 | | 19.04 | | .31 | | (.40 | ) | | (.09 | ) | | (.31 | ) | | (.01 | ) | | — |
| Class E | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 18.89 | | .22 | | .39 | | | .61 | | | (.30 | ) | | — | | | — |
October 31, 2009 | | 17.24 | | .66 | | 1.62 | | | 2.28 | | | (.63 | ) | | — | | | — |
October 31, 2008 | | 18.82 | | .74 | | (1.55 | ) | | (.81 | ) | | (.77 | ) | | — | | | — |
October 31, 2007 | | 18.73 | | .72 | | .14 | | | .86 | | | (.77 | ) | | — | | | — |
October 31, 2006 | | 18.70 | | .65 | | .03 | | | .68 | | | (.65 | ) | | — | | | — |
October 31, 2005 | | 19.10 | | .46 | | (.41 | ) | | .05 | | | (.44 | ) | | (.01 | ) | | — |
| Class S | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 18.86 | | .24 | | .39 | | | .63 | | | (.32 | ) | | — | | | — |
October 31, 2009 | | 17.21 | | .70 | | 1.63 | | | 2.33 | | | (.68 | ) | | — | | | — |
October 31, 2008 | | 18.79 | | .79 | | (1.55 | ) | | (.76 | ) | | (.82 | ) | | — | | | — |
October 31, 2007 | | 18.70 | | .75 | | .16 | | | .91 | | | (.82 | ) | | — | | | — |
October 31, 2006 | | 18.67 | | .69 | | .03 | | | .72 | | | (.69 | ) | | — | | | — |
October 31, 2005 | | 19.07 | | .51 | | (.41 | ) | | .10 | | | (.49 | ) | | (.01 | ) | | — |
| Class Y | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 18.86 | | .25 | | .39 | | | .64 | | | (.33 | ) | | — | | | — |
October 31, 2009 | | 17.21 | | .72 | | 1.63 | | | 2.35 | | | (.70 | ) | | — | | | — |
October 31, 2008(6) | | 18.11 | | .08 | | (.78 | ) | | (.70 | ) | | (.20 | ) | | — | | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.30 | ) | | 19.16 | | 3.19 | | | 21,608 | | .94 | | 1.02 | | 1.16 | | 48 |
| (.64 | ) | | 18.86 | | 13.58 | | | 13,815 | | .96 | | 1.04 | | 3.55 | | 217 |
| (.78 | ) | | 17.22 | | (4.60 | ) | | 4,566 | | .96 | | .99 | | 3.98 | | 146 |
| (.48 | ) | | 18.81 | | 3.16 | | | 1,363 | | .92 | | .93 | | 3.92 | | 173 |
| | | | | | | | | | | | | | | | |
| (.23 | ) | | 19.10 | | 2.84 | | | 80,232 | | 1.69 | | 1.77 | | .78 | | 48 |
| (.52 | ) | | 18.79 | | 12.75 | | | 49,381 | | 1.71 | | 1.79 | | 2.82 | | 217 |
| (.64 | ) | | 17.17 | | (5.28 | ) | | 21,508 | | 1.70 | | 1.73 | | 3.23 | | 146 |
| (.63 | ) | | 18.76 | | 3.98 | | | 16,075 | | 1.67 | | 1.68 | | 3.18 | | 173 |
| (.50 | ) | | 18.66 | | 2.89 | | | 21,840 | | 1.65 | | 1.66 | | 2.71 | | 112 |
| (.32 | ) | | 18.63 | | (.50 | ) | | 30,290 | | 1.65 | | 1.66 | | 1.65 | | 203 |
| | | | | | | | | | | | | | | | |
| (.30 | ) | | 19.20 | | 3.24 | | | 22,575 | | .94 | | 1.02 | | 1.16 | | 48 |
| (.63 | ) | | 18.89 | | 13.59 | | | 17,874 | | .96 | | 1.04 | | 3.67 | | 217 |
| (.77 | ) | | 17.24 | | (4.59 | ) | | 14,144 | | .95 | | .98 | | 3.96 | | 146 |
| (.77 | ) | | 18.82 | | 4.72 | | | 17,092 | | .92 | | .93 | | 3.95 | | 173 |
| (.65 | ) | | 18.73 | | 3.69 | | | 26,800 | | .90 | | .91 | | 3.49 | | 112 |
| (.45 | ) | | 18.70 | | .25 | | | 24,851 | | .90 | | .91 | | 2.43 | | 203 |
| | | | | | | | | | | | | | | | |
| (.32 | ) | | 19.17 | | 3.37 | | | 437,140 | | .69 | | .77 | | 1.29 | | 48 |
| (.68 | ) | | 18.86 | | 13.84 | | | 354,384 | | .71 | | .79 | | 3.89 | | 217 |
| (.82 | ) | | 17.21 | | (4.30 | ) | | 233,223 | | .70 | | .72 | | 4.20 | | 146 |
| (.82 | ) | | 18.79 | | 4.99 | | | 435,704 | | .67 | | .68 | | 4.20 | | 173 |
| (.69 | ) | | 18.70 | | 3.95 | | | 1,106,946 | | .65 | | .65 | | 3.73 | | 112 |
| (.50 | ) | | 18.67 | | .51 | | | 1,158,439 | | .65 | | .66 | | 2.67 | | 203 |
| | | | | | | | | | | | | | | | |
| (.33 | ) | | 19.17 | | 3.36 | | | 184,684 | | .59 | | .59 | | 1.34 | | 48 |
| (.70 | ) | | 18.86 | | 14.00 | | | 154,593 | | .62 | | .62 | | 4.01 | | 217 |
| (.20 | ) | | 17.21 | | (3.88 | ) | | 111,198 | | .65 | | .73 | | 4.28 | | 146 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | $
Return of
Capital |
Russell Tax Exempt Bond Fund | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.87 | | .26 | | .29 | | | .55 | | | (.27 | ) | | — | | — |
October 31, 2009 | | 20.51 | | .54 | | 1.37 | | | 1.91 | | | (.55 | ) | | — | | — |
October 31, 2008 | | 21.31 | | .55 | | (.80 | ) | | (.25 | ) | | (.55 | ) | | — | | — |
October 31, 2007 | | 21.63 | | .58 | | (.32 | ) | | .26 | | | (.58 | ) | | — | | — |
October 31, 2006 | | 21.45 | | .57 | | .17 | | | .74 | | | (.56 | ) | | — | | — |
October 31, 2005 | | 22.03 | | .51 | | (.61 | ) | | (.10 | ) | | (.48 | ) | | — | | — |
| Class E | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.94 | | .35 | | .29 | | | .64 | | | (.35 | ) | | — | | — |
October 31, 2009 | | 20.57 | | .70 | | 1.37 | | | 2.07 | | | (.70 | ) | | — | | — |
October 31, 2008 | | 21.38 | | .72 | | (.82 | ) | | (.10 | ) | | (.71 | ) | | — | | — |
October 31, 2007 | | 21.70 | | .76 | | (.34 | ) | | .42 | | | (.74 | ) | | — | | — |
October 31, 2006 | | 21.52 | | .73 | | .17 | | | .90 | | | (.72 | ) | | — | | — |
October 31, 2005 | | 22.10 | | .67 | | (.60 | ) | | .07 | | | (.65 | ) | | — | | — |
| Class S | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 21.91 | | .37 | | .28 | | | .65 | | | (.37 | ) | | — | | — |
October 31, 2009 | | 20.54 | | .76 | | 1.37 | | | 2.13 | | | (.76 | ) | | — | | — |
October 31, 2008 | | 21.36 | | .77 | | (.82 | ) | | (.05 | ) | | (.77 | ) | | — | | — |
October 31, 2007 | | 21.67 | | .80 | | (.32 | ) | | .48 | | | (.79 | ) | | — | | — |
October 31, 2006 | | 21.49 | | .79 | | .16 | | | .95 | | | (.77 | ) | | — | | — |
October 31, 2005 | | 22.07 | | .72 | | (.60 | ) | | .12 | | | (.70 | ) | | — | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.27 | ) | | 22.15 | | 2.52 | | | 27,721 | | 1.50 | | 1.58 | | 2.42 | | 15 |
| (.55 | ) | | 21.87 | | 9.42 | | | 24,393 | | 1.50 | | 1.58 | | 2.53 | | 52 |
| (.55 | ) | | 20.51 | | (1.25 | ) | | 16,541 | | 1.54 | | 1.56 | | 2.61 | | 54 |
| (.58 | ) | | 21.31 | | 1.21 | | | 12,722 | | 1.55 | | 1.55 | | 2.72 | | 72 |
| (.56 | ) | | 21.63 | | 3.50 | | | 11,819 | | 1.56 | | 1.56 | | 2.66 | | 63 |
| (.48 | ) | | 21.45 | | (.46 | ) | | 10,493 | | 1.53 | | 1.53 | | 2.31 | | 43 |
| | | | | | | | | | | | | | | | |
| (.35 | ) | | 22.23 | | 2.93 | | | 29,125 | | .76 | | .84 | | 3.17 | | 15 |
| (.70 | ) | | 21.94 | | 10.19 | | | 23,434 | | .76 | | .84 | | 3.29 | | 52 |
| (.71 | ) | | 20.57 | | (.46 | ) | | 18,422 | | .79 | | .81 | | 3.37 | | 54 |
| (.74 | ) | | 21.38 | | 1.96 | | | 19,442 | | .80 | | .80 | | 3.48 | | 72 |
| (.72 | ) | | 21.70 | | 4.26 | | | 11,805 | | .80 | | .81 | | 3.41 | | 63 |
| (.65 | ) | | 21.52 | | .31 | | | 8,572 | | .78 | | .78 | | 3.07 | | 43 |
| | | | | | | | | | | | | | | | |
| (.37 | ) | | 22.19 | | 3.01 | | | 467,008 | | .51 | | .59 | | 3.42 | | 15 |
| (.76 | ) | | 21.91 | | 10.48 | | | 411,956 | | .50 | | .58 | | 3.53 | | 52 |
| (.77 | ) | | 20.54 | | (.23 | ) | | 366,707 | | .54 | | .56 | | 3.61 | | 54 |
| (.79 | ) | | 21.36 | | 2.26 | | | 336,275 | | .55 | | .55 | | 3.72 | | 72 |
| (.77 | ) | | 21.67 | | 4.53 | | | 274,438 | | .55 | | .56 | | 3.66 | | 63 |
| (.70 | ) | | 21.49 | | .55 | | | 228,604 | | .53 | | .53 | | 3.31 | | 43 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
Russell Real Estate Securities Fund | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 26.38 | | .49 | | | 7.57 | | | 8.06 | | | (.35 | ) | | — | | | — | |
October 31, 2009 | | 26.79 | | .76 | | | (.44 | ) | | .32 | | | (.73 | ) | | — | | | — | |
October 31, 2008 | | 52.29 | | .88 | | | (19.82 | ) | | (18.94 | ) | | (.86 | ) | | (5.64 | ) | | (.06 | ) |
October 31, 2007(3) | | 57.37 | | .11 | | | (4.50 | ) | | (4.39 | ) | | (.69 | ) | | — | | | — | |
| Class C | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 25.85 | | .37 | | | 7.42 | | | 7.79 | | | (.24 | ) | | — | | | — | |
October 31, 2009 | | 26.30 | | .59 | | | (.47 | ) | | .12 | | | (.57 | ) | | — | | | — | |
October 31, 2008 | | 51.42 | | .60 | | | (19.49 | ) | | (18.89 | ) | | (.55 | ) | | (5.64 | ) | | (.04 | ) |
October 31, 2007 | | 56.11 | | .20 | | | .27 | | | .47 | | | (.34 | ) | | (4.82 | ) | | — | |
October 31, 2006 | | 46.08 | | .22 | | | 15.14 | | | 15.36 | | | (.35 | ) | | (4.98 | ) | | — | |
October 31, 2005 | | 43.10 | | .42 | | | 6.66 | | | 7.08 | | | (.43 | ) | | (3.67 | ) | | — | |
| Class E | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 26.38 | | .48 | | | 7.59 | | | 8.07 | | | (.34 | ) | | — | | | — | |
October 31, 2009 | | 26.84 | | .73 | | | (.46 | ) | | .27 | | | (.73 | ) | | — | | | — | |
October 31, 2008 | | 52.36 | | .89 | | | (19.87 | ) | | (18.98 | ) | | (.84 | ) | | (5.64 | ) | | (.06 | ) |
October 31, 2007 | | 56.95 | | .62 | | | .28 | | | .90 | | | (.67 | ) | | (4.82 | ) | | — | |
October 31, 2006 | | 46.62 | | .59 | | | 15.36 | | | 15.95 | | | (.64 | ) | | (4.98 | ) | | — | |
October 31, 2005 | | 43.55 | | .76 | | | 6.74 | | | 7.50 | | | (.76 | ) | | (3.67 | ) | | — | |
| Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 26.76 | | .53 | | | 7.68 | | | 8.21 | | | (.38 | ) | | — | | | — | |
October 31, 2009 | | 27.19 | | .80 | | | (.44 | ) | | .36 | | | (.79 | ) | | — | | | — | |
October 31, 2008 | | 52.94 | | 1.02 | | | (20.12 | ) | | (19.10 | ) | | (.94 | ) | | (5.64 | ) | | (.07 | ) |
October 31, 2007 | | 57.53 | | .75 | | | .28 | | | 1.03 | | | (.80 | ) | | (4.82 | ) | | | |
October 31, 2006 | | 47.03 | | .73 | | | 15.51 | | | 16.24 | | | (.76 | ) | | (4.98 | ) | | — | |
October 31, 2005 | | 43.90 | | .88 | | | 6.79 | | | 7.67 | | | (.87 | ) | | (3.67 | ) | | — | |
| Class Y | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 26.75 | | .55 | | | 7.70 | | | 8.25 | | | (.41 | ) | | — | | | — | |
October 31, 2009 | | 27.19 | | .86 | | | (.48 | ) | | .38 | | | (.82 | ) | | — | | | — | |
October 31, 2008(6) | | 38.52 | | (.32 | ) | | (10.79 | ) | | (11.11 | ) | | (.20 | ) | | — | | | (.02 | ) |
Russell Money Market Fund | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 1.0000 | | — | (d) | | — | | | — | (d) | | — | (d) | | — | | | — | |
October 31, 2009 | | 1.0000 | | .0052 | | | (.0010 | ) | | (.0042 | ) | | (.0042 | ) | | — | | | — | |
October 31, 2008 | | 1.0000 | | .0324 | | | .0016 | | | .0340 | | | (.0340 | ) | | — | | | — | |
October 31, 2007 | | 1.0000 | | .0517 | | | — | | | .0517 | | | (.0517 | ) | | — | | | — | |
October 31, 2006 | | 1.0000 | | .0464 | | | — | | | .0464 | | | (.0464 | ) | | — | | | — | |
October 31, 2005 | | 1.0000 | | .0271 | | | — | | | .0271 | | | (.0271 | ) | | — | | | — | |
| Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 1.0000 | | — | (d) | | — | | | — | (d) | | — | (d) | | — | | | — | |
October 31, 2009 | | 1.0000 | | .0053 | | | (.0004 | ) | | .0049 | | | (.0049 | ) | | — | | | — | |
October 31, 2008 | | 1.0000 | | .0344 | | | .0007 | | | .0351 | | | (.0351 | ) | | — | | | — | |
October 31, 2007 | | 1.0000 | | .0527 | | | — | | | .0527 | | | (.0527 | ) | | — | | | — | |
October 31, 2006 | | 1.0000 | | .0474 | | | — | | | .0474 | | | (.0474 | ) | | — | | | — | |
October 31, 2005 | | 1.0000 | | .0280 | | | — | | | .0280 | | | (.0280 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(f) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(c)(e)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(c) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(e) | | | %
Portfolio
Turnover Rate(b) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.35 | ) | | 34.09 | | 30.73 | | | 23,067 | | 1.33 | | 1.33 | | 1.63 | | | 44 |
| (.73 | ) | | 26.38 | | 2.10 | | | 16,370 | | 1.34 | | 1.34 | | 3.45 | | | 118 |
| (6.56 | ) | | 26.79 | | (39.97 | ) | | 15,978 | | 1.34 | | 1.34 | | 2.30 | | | 66 |
| (.69 | ) | | 52.29 | | (7.70 | ) | | 7,868 | | 1.32 | | 1.33 | | .35 | | | 70 |
| | | | | | | | | | | | | | | | | |
| (.24 | ) | | 33.40 | | 30.28 | | | 55,489 | | 2.08 | | 2.08 | | 1.26 | | | 44 |
| (.57 | ) | | 25.85 | | 1.21 | | | 45,163 | | 2.09 | | 2.09 | | 2.74 | | | 118 |
| (6.23 | ) | | 26.30 | | (40.42 | ) | | 51,273 | | 2.09 | | 2.09 | | 1.56 | | | 66 |
| (5.16 | ) | | 51.42 | | .56 | | | 98,745 | | 2.07 | | 2.08 | | .38 | | | 70 |
| (5.33 | ) | | 56.11 | | 36.63 | | | 110,287 | | 2.07 | | 2.08 | | .45 | | | 49 |
| (4.10 | ) | | 46.08 | | 17.22 | | | 81,876 | | 2.10 | | 2.10 | | .95 | | | 64 |
| | | | | | | | | | | | | | | | | |
| (.34 | ) | | 34.11 | | 30.74 | | | 44,521 | | 1.33 | | 1.33 | | 1.63 | | | 44 |
| (.73 | ) | | 26.38 | | 1.95 | | | 36,262 | | 1.34 | | 1.34 | | 3.32 | | | 118 |
| (6.54 | ) | | 26.84 | | (39.99 | ) | | 32,758 | | 1.34 | | 1.34 | | 2.29 | | | 66 |
| (5.49 | ) | | 52.36 | | 1.33 | | | 51,299 | | 1.32 | | 1.33 | | 1.13 | | | 70 |
| (5.62 | ) | | 56.95 | | 37.65 | | | 59,768 | | 1.32 | | 1.32 | | 1.19 | | | 49 |
| (4.43 | ) | | 46.62 | | 18.09 | | | 40,296 | | 1.35 | | 1.35 | | 1.71 | | | 64 |
| | | | | | | | | | | | | | | | | |
| (.38 | ) | | 34.59 | | 30.88 | | | 1,324,504 | | 1.08 | | 1.08 | | 1.75 | | | 44 |
| (.79 | ) | | 26.76 | | 2.26 | | | 1,013,787 | | 1.09 | | 1.09 | | 3.59 | | | 118 |
| (6.65 | ) | | 27.19 | | (39.83 | ) | | 884,480 | | 1.09 | | 1.09 | | 2.57 | | | 66 |
| (5.62 | ) | | 52.94 | | 1.57 | | | 2,126,802 | | 1.07 | | 1.08 | | 1.38 | | | 70 |
| (5.74 | ) | | 57.53 | | 38.04 | | | 1,903,365 | | 1.07 | | 1.07 | | 1.46 | | | 49 |
| (4.54 | ) | | 47.03 | | 18.35 | | | 1,434,109 | | 1.10 | | 1.10 | | 1.95 | | | 64 |
| | | | | | | | | | | | | | | | | |
| (.41 | ) | | 34.59 | | 31.04 | | | 631,110 | | .90 | | .90 | | 1.84 | | | 44 |
| (.82 | ) | | 26.75 | | 2.40 | | | 551,981 | | .91 | | .91 | | 3.86 | | | 118 |
| (.22 | ) | | 27.19 | | (28.98 | ) | | 470,552 | | 1.01 | | 1.01 | | (10.48 | ) | | 66 |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| — | (d) | | 1.0000 | | — | | | 106,623 | | .17 | | .59 | | — | (h) | | — |
| (.0042 | ) | | 1.0000 | | .42 | | | 166,150 | | .31 | | .63 | | .52 | | | — |
| (.0340 | ) | | 1.0000 | | 3.45 | | | 415,233 | | .26 | | .42 | | 3.24 | | | — |
| (.0517 | ) | | 1.0000 | | 5.30 | | | 291,636 | | .25 | | .40 | | 5.18 | | | — |
| (.0464 | ) | | 1.0000 | | 4.74 | | | 76,031 | | .25 | | .40 | | 4.82 | | | — |
| (.0271 | ) | | 1.0000 | | 2.74 | | | 14,410 | | .25 | | .40 | | 2.91 | | | — |
| | | | | | | | | | | | | | | | | |
| — | (d) | | 1.0000 | | — | | | 357,860 | | .18 | | .59 | | — | (h) | | — |
| (.0049 | ) | | 1.0000 | | .49 | | | 2,411,490 | | .23 | | .55 | | .53 | | | — |
| (.0351 | ) | | 1.0000 | | 3.56 | | | 4,874,243 | | .16 | | .32 | | 3.44 | | | — |
| (.0527 | ) | | 1.0000 | | 5.40 | | | 5,429,652 | | .15 | | .30 | | 5.27 | | | — |
| (.0474 | ) | | 1.0000 | | 4.84 | | | 4,166,051 | | .15 | | .30 | | 4.78 | | | — |
| (.0280 | ) | | 1.0000 | | 2.82 | | | 3,145,592 | | .15 | | .30 | | 2.83 | | | — |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Russell Funds
Notes to Financial Highlights — April 30, 2010 (Unaudited)
| * | For the period ended April 30, 2010 (Unaudited). |
| (1) | For the period June 23, 2005 (commencement of operations) to October 31, 2005. |
| (2) | For the period February 28, 2007 (commencement of operations) to October 31, 2007. |
| (3) | For the period March 1, 2007 (commencement of operations) to October 31, 2007. |
| (4) | For the period October 22, 2007 (commencement of operations) to October 31, 2007. |
| (5) | For the period September 2, 2008 (commencement of operations) to October 31, 2008. |
| (6) | For the period September 26, 2008 (commencement of operations) to October 31, 2008. |
| (a) | Average month-end shares outstanding were used for this calculation. |
| (b) | Periods less than one year are not annualized. |
| (c) | The ratios for periods less than one year are annualized. |
| (d) | Less than $.01 per share. |
| (e) | May reflect amounts waived and/or reimbursed by RIMCo (“Russell Investment Management Company”) and/or RFSC (“Russell Fund Services Company”), and for certain funds, custody credit arrangements. |
| (f) | Total return for Class A does not reflect a front-end sales charge. If sales charges were included, the total return would be lower. |
| (g) | For the Russell U.S. Quantitative Equity Fund, the respective annualized net expense ratios, not including the dividend and interest expense from short sales, were as follows: |
| (h) | Less than .05% of average net assets. |
| | | | | | | | | | | | | | | | | | |
| For the period ended | | Class A | | | Class C | | | Class E | | | Class I | | | Class S | | | Class Y | |
| | | | | | | | | | | | | | | | | | |
April 30, 2010 | | 1.06 | % | | 1.81 | % | | 0.94 | % | | 0.70 | % | | 0.81 | % | | 0.64 | % |
October 31, 2009 | | 1.07 | % | | 1.81 | % | | 0.94 | % | | 0.69 | % | | 0.82 | % | | 0.64 | % |
October 31, 2008 | | 1.09 | % | | 1.84 | % | | 0.94 | % | | 0.71 | % | | 0.83 | % | | 0.65 | % |
October 31, 2007 | | n/a | | | n/a | | | 0.93 | % | | 0.68 | % | | n/a | | | 0.64 | % |
October 31, 2006 | | n/a | | | n/a | | | 0.93 | % | | 0.69 | % | | n/a | | | 0.63 | % |
October 31, 2005 | | n/a | | | n/a | | | n/a | | | n/a | | | n/a | | | n/a | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 286 | | Notes to Financial Highlights |
Russell Investment Company
Russell Funds
Notes to Financial Statements — April 30, 2010 (Unaudited)
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 37 different investment portfolios referred to as Funds. These financial statements report on 16 of these Funds (each a “Fund” and collectively the “Funds”). The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under a Second Amended and Restated Master Trust Agreement dated October 1, 2008. The Investment Company’s Master Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest.
| 2. | | Significant Accounting Policies |
The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“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 following is a summary of the significant accounting policies consistently followed by each Fund in the preparation of its financial statements.
Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair value procedures. Russell money market fund securities are priced using the amortized cost method of valuation, as are debt obligation securities maturing within 60 days at the time of purchase, unless the Board determines that amortized cost does not represent market value of such short-term debt obligations or money market fund securities. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell Fund Services Company (“RFSC”).
Ordinarily, the Funds value each portfolio security based on market quotations provided by independent pricing services or alternative pricing services or dealers (when permitted by the market value procedures). Pricing services may utilize evaluated pricing models which apply available market information through the use of benchmark curves, benchmarking of similar securities, sector groupings, spread adjustments and ratings. Generally, Fund portfolio securities are valued at the close of the principal exchange on which they are traded as follows:
| | • | | U.S. listed equities, equity and fixed income options and rights/warrants: Last sale price; last bid price if no last sale price. |
| | • | | U.S. over-the-counter equities: Official closing price; last bid price if no closing price. |
| | • | | Listed ADRs/GDRs: Last sale price; last bid price if no last sale price. |
| | • | | Municipal bonds, U.S. bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price. |
| | • | | Futures: Settlement price. |
| | • | | Options on futures: Last sale price; settlement price if no last sale price. |
| | • | | Bank loans and forwards: Mean between bid and ask price. |
| | • | | Investments in other mutual funds (including unregistered collective vehicles) are valued at their net asset value per share, as provided in the applicable fund prospectus or offering document and applicable law. |
| | • | | The value of swap agreements is equal to the Funds’ obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. |
| | • | | Equity securities traded on a national foreign securities exchange or a foreign over the counter market are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. |
If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Funds will use the security’s fair value in accordance with the fair value procedures. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Board believes reflects fair value. The fair value procedures may involve subjective judgments (e.g. trade information, news, broker quotes) as to the fair value of securities. The use of fair value pricing by a Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Fund shares and the daily movement of the benchmark index if the index is valued using another pricing method.
| | |
| Notes to Financial Statements | | 287 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
This policy is intended to assure that the Funds’ net asset values fairly reflect security values as of the time of pricing. 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 net asset value of Fund shares is determined may be reflected in the calculation of net asset values for each applicable Fund when the Funds deem that the particular event or circumstance would materially affect such Fund’s net asset value. 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 are likely to use fair value pricing more often since significant events may occur between the close of foreign markets and the time of pricing which would trigger fair value pricing of the foreign securities. Funds that invest in low-rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the U.S. securities market (defined in the fair value procedures as the movement by a single major U.S. index greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict.
The net asset value 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.
Fair value of securities is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. To increase consistency and comparability in fair value measurement, the fair value hierarchy was established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The fair value hierarchy of inputs is summarized in the three broad levels listed below.
| | • | | Level 1 — quoted prices (unadjusted) in active markets for identical investments |
| | • | | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| | • | | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The levels associated with valuing the Funds’ investments for the period ended April 30, 2010 are disclosed in the Presentation of Portfolio Holdings.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost incurred by each money manager 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 thereafter as the Funds are informed of the ex-dividend date. Interest income is recorded daily on the accrual basis. The fixed income funds classify gains and losses realized on prepayments received on mortgage-backed securities as an adjustment to interest income. All premiums and discounts, including original issue discounts, are amortized/accreted using the effective interest method.
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.
Each Fund qualifies as a regulated investment company under sub-chapter M of the Internal Revenue Code and intends to distribute all of its taxable income and capital gains. Therefore, no federal income tax provision is required for the Funds.
| | |
| 288 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Each Fund files a U. S. tax return. At April 30, 2010, the Funds have 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 ending October 31, 2006 through October 31, 2008, 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.
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 |
Daily | | Monthly | | Russell Money Market Fund |
| | |
Monthly | | Early in the following month | | Russell Strategic Bond, Russell Investment Grade Bond, Russell Short Duration Bond and Russell Tax Exempt Bond Funds |
| | |
Quarterly | | April, July, October and December | | Russell U.S. Core Equity, Russell U.S. Quantitative Equity, Russell U.S. Value and Russell Real Estate Securities Funds |
| | |
Annually | | Mid-December | | Russell U.S. Growth, Russell U.S. Small & Mid Cap, Russell International Developed Markets, Russell Global Equity, Russell Emerging Markets, Russell Tax-Managed U.S. Large Cap and Russell Tax-Managed U.S. Mid & Small Cap Funds |
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 GAAP. As a result, net investment income and net realized gain (or loss) on investment and foreign currency-related transactions for a reporting period may differ significantly from distributions during such period. The differences between tax regulations and 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 and capital loss carryforwards.
Expenses
The Funds will pay their own expenses other than those expressly assumed by Russell Investment Management Company (“RIMCo”) or RFSC. 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 C, Class E, Class I, Class S and Class Y. All share classes have identical voting, dividend, liquidation and other rights 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) | Market 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. |
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.
| | |
| Notes to Financial Statements | | 289 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
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 Russell International Developed Markets, Russell Global Equity and Russell Emerging Markets 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 tax liability with respect to the unrealized appreciation on foreign securities for potential capital gains and repatriation taxes at April 30, 2010. 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 Tax
Liability | | Capital Gains
Taxes |
| | | | | | |
Russell International Developed Markets Fund | | $ | 91,587 | | $ | 91,127 |
Russell Global Equity Fund | | | 525,244 | | | 40,816 |
Russell Emerging Markets Fund | | | 1,863,201 | | | 409,827 |
Derivatives
To the extent permitted by the investment objectives, restrictions and policies set forth in the Funds’ Prospectus and Statement of Additional Information, the Funds may participate in various derivative-based transactions. Derivative securities are instruments or agreements whose value is derived from an underlying security or index. They include options, futures, swaps, forwards, structured notes and stripped securities. These instruments offer unique characteristics and risks that assist the Funds in meeting their investment strategies.
The Funds typically use derivatives in three ways: exposing cash reserves to markets, hedging and return enhancement. In addition, certain Funds may enter into foreign exchange contracts for trade settlement purposes. The Funds, other than the Russell Real Estate Securities Fund and Russell Tax Exempt Bond Fund, may pursue their strategy of being fully invested by exposing cash reserves to the performance of appropriate markets by purchasing securities and/or derivatives. This is intended to cause the Funds to perform as though cash reserves were actually invested in those markets. Hedging is also used by the 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. 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 are generally categorized as market risk, liquidity risk and counterparty or credit risk.
The Funds’ period end derivatives, as presented in the Schedule of Investments or the tables following, generally are indicative of the volume of their derivative activity during the period ended April 30, 2010.
The effects of the Funds with derivative instruments categorized by risk exposure for the period ended April 30, 2010 are disclosed in the Schedules of Investments.
Foreign Currency Exchange Contracts
In connection with investment transactions consistent with the Funds’ investment objectives and strategies, certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“contracts”). From time to time certain Funds may enter into contracts to hedge certain foreign currency-denominated assets. Contracts are recorded at market value. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and are generally limited to the amount of unrealized gain on the contracts, if any, that are recognized in the Statements of Assets and Liabilities. Realized gains or losses arising from such transactions are included in net realized gain (or loss) from foreign currency-related transactions.
| | |
| 290 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
For the period ended April 30, 2010, the following funds entered into foreign currency exchange contracts primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell International Developed Markets | | Return enhancement, hedging, exposing cash reserves and trade settlement |
Russell Global Equity | | Exposing cash reserves and trade settlement |
Russell Emerging Markets | | Exposing cash reserves |
Russell Strategic Bond | | Return enhancement and hedging |
Russell Investment Grade Bond | | Return enhancement and hedging |
Russell Short Duration Bond | | Return enhancement and hedging |
Russell Real Estate Securities | | Trade settlement |
Options
The Funds may purchase and sell (write) call and put options on securities and securities indices, provided such options are traded on a national securities exchange or in an over-the-counter market. The Funds may also purchase and sell call and put options on foreign currencies. The domestic equity Funds may utilize options to expose cash reserves to markets.
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 market 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 stock value 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 security.
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. Realized gains (losses) on purchased options are included in net realized gain (loss) from investments on the Statements of Operations.
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.
A Fund may enter into a swaption (swap option). In a swaption, 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 interest rate swap. Unrealized gains/losses on swaptions are reflected in investment assets and investment liabilities in the Fund’s Statement of Assets and Liabilities.
For the period ended April 30, 2010, the Funds purchased/sold options primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Strategic Bond | | Return enhancement and hedging |
Russell Investment Grade Bond | | Return enhancement and hedging |
Russell Short Duration Bond | | Return enhancement and hedging |
Futures Contracts
The Funds may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts) to a limited extent. The face or contract amounts 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 market value of the securities held by the Fund 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% of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are 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.
| | |
| Notes to Financial Statements | | 291 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
For the period ended April 30, 2010, the following funds entered into future contracts primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell U.S. Core Equity | | Exposing cash reserves |
Russell U.S. Quantitative Equity | | Exposing cash reserves |
Russell U.S. Growth | | Exposing cash reserves |
Russell U.S. Value | | Exposing cash reserves |
Russell U.S. Small & Mid Cap | | Exposing cash reserves |
Russell International Developed Markets | | Return enhancement and exposing cash reserves |
Russell Global Equity | | Exposing cash reserves |
Russell Emerging Markets | | Exposing cash reserves |
Russell Tax-Managed U.S. Large Cap | | Exposing cash reserves |
Russell Tax-Managed U.S. Mid & Small Cap | | Exposing cash reserves |
Russell Strategic Bond | | Return enhancement, hedging and exposing cash reserves |
Russell Investment Grade Bond | | Return enhancement, hedging and exposing cash reserves |
Russell Short Duration Bond | | Return enhancement, hedging and exposing cash reserves |
As of April 30, 2010, the Funds had cash collateral balances in connection with futures contracts purchased (sold) as follows:
| | | |
| | | Cash Collateral
for Futures |
| | | |
Russell U.S. Core Equity Fund | | $ | 18,950,000 |
Russell U.S. Quantitative Equity Fund | | | 12,100,000 |
Russell U.S. Growth Fund | | | 440,000 |
Russell U.S. Value Fund | | | 725,000 |
Russell U.S. Small & Mid Cap Fund | | | 4,700,000 |
Russell International Developed Markets Fund | | | 33,772,631 |
Russell Global Equity Fund | | | 8,700,000 |
Russell Emerging Markets Fund | | | 2,500,000 |
Russell Tax-Managed U.S. Large Cap Fund | | | 1,500,000 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 700,000 |
Russell Strategic Bond Fund | | | 1,529,000 |
Russell Investment Grade Bond Fund | | | 500,000 |
Russell Short Duration Bond Fund | | | 176,000 |
Swap Agreements
The 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, as the case may be, 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 or rights to receive payments of another party (i.e., an exchange of floating rate payments for fixed rate payments).
Certain Funds may enter into several different types of agreements including interest rate, credit default and currency swaps. The Funds may enter into index swap agreements to expose cash reserves to markets or to effect investment transactions consistent with those Funds’ investment objectives and strategies. Interest rate swaps are a counterparty agreement, can be customized to meet each party’s needs, and involve the exchange of a fixed payment per period for a payment that is not fixed. Currency swaps are an 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. Credit default swaps are a counterparty agreement which allows the transfer of third party credit risk (the possibility that an issuer will default on their 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.
The Funds 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. 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 high-grade debt securities having an aggregate net asset value 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 earmarked on the Funds’ records will be the full amount of the Funds’ obligations, if any, with respect to such interest rate 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.
| | |
| 292 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes bankrupt. The market for swap agreements is largely unregulated. The Funds may enter into swap agreements with counterparties that meet RIMCo’s credit quality limitations. The Funds will not enter into any swap unless the counterparty has a minimum senior unsecured credit rating or long term counterparty credit rating, including reassignments, of A- or better as defined by Standard & Poor’s or an equivalent rating from any nationally recognized statistical rating organization (using highest of split ratings) at the time of entering into such transaction.
Swap agreements generally are entered into by “eligible contract participants” and in compliance with certain other criteria necessary to render them excluded from regulation under the Commodity Exchange Act (“CEA”) and, therefore not subject to regulation as futures or commodity option transactions under the CEA.
As of April 30, 2010, the Funds had cash collateral balances in connection with swap contracts purchased (sold) as follows:
| | | | | | |
| | | Cash
Collateral for
Swaps | | Due to Broker |
| | | | | | |
Russell International Developed Markets Fund | | $ | 2,310,000 | | $ | — |
Russell Emerging Markets Fund | | | 3,500,000 | | | — |
Russell Strategic Bond Fund | | | 27,960,699 | | | 20,971,124 |
Russell Investment Grade Bond Fund | | | 3,579,000 | | | 1,410,000 |
Russell Short Duration Bond Fund | | | — | | | 1,476,000 |
Credit Default Swaps
The fixed income funds may enter into credit default swaps. A credit default swap can refer to corporate issues, asset-backed securities or an index of assets, each known as the reference entity or underlying asset. The fixed income 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 fixed income funds may be unable to deliver the underlying debt security to the other party to the agreement. Additionally, the fixed income 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, the fixed income funds enter into a credit default swap without owning the underlying asset or debt issued by the reference entity. Credit default swaps allow the fixed income funds to acquire or reduce credit exposure to a particular issuer, asset or basket of assets.
As the seller of protection in a credit default swap, the fixed income funds 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); the counterparty would be required to surrender the reference debt obligation. In return, the fixed income funds 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 fixed income funds would keep the stream of payments and would have no payment obligations. As a seller of protection, the fixed income funds 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 fixed income funds may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities held in its portfolio, in which case the fixed income funds would function as the counterparty referenced in the preceding paragraph.
If a credit event occurs on a corporate issue 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 fixed income funds may use credit default swaps on corporate issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the fixed income funds own or 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.
Unlike credit default swaps on corporate issues, 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 write-down 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 fixed income 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 other defined credit events).
| | |
| Notes to Financial Statements | | 293 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
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 market 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 market 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 a fixed income fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of April 30, 2010 for which a fixed income 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 fixed income fund for the same referenced entity or entities.
Credit default swaps could result in losses if the fixed income 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 fixed income 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. The fixed income funds 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, the fixed income funds 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 the fixed income funds, 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 fixed income funds.
If the creditworthiness of the fixed income funds’ swap counterparty declines, the risk that the counterparty may not perform could increase, potentially resulting in a loss to the fixed income funds. To limit the counterparty risk involved in swap agreements, the fixed income funds will only enter into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that the fixed income funds will be able to do so, the fixed income funds may be able to reduce or eliminate its 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. The fixed income funds may have limited ability to eliminate its exposure under a credit default swap if the credit of the reference entity or underlying asset has declined.
For the period ended April 30, 2010, the Funds entered into credit default swaps primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Strategic Bond | | Return enhancement and hedging |
Russell Investment Grade Bond | | Return enhancement and hedging |
Russell Short Duration Bond | | Return enhancement and hedging |
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 a money manager using this technique is incorrect in its forecast of market 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.
| | |
| 294 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
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. If the other party to an interest rate swap defaults, the Funds’ risk of loss consists of the net amount of interest payments that the Funds are contractually entitled to receive. Since interest rate swaps are individually negotiated, the Funds expect to achieve an acceptable degree of correlation between their rights to receive interest on their portfolio securities and their rights and obligations to receive and pay interest pursuant to interest rate swaps.
For the period ended April 30, 2010, the Funds entered into interest rate swaps primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Strategic Bond | | Return enhancement and hedging |
Russell Investment Grade Bond | | Return enhancement and hedging |
Russell Short Duration Bond | | Return enhancement and hedging |
Index Swaps
Certain Funds may enter into index swap agreements to expose cash reserves to markets or to effect investment transactions consistent with these Funds’ investment objectives and strategies. 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 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, 2010, the Funds entered into index swaps primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Emerging Markets | | Exposing cash reserves |
ISDA Master Agreements
The Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) with counterparties that govern transactions in over-the-counter 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 include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to early terminate could be material to the financial statements.
Loan Agreements
The Russell Strategic Bond, Russell Investment Grade Bond and Russell Short Duration Bond 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 it is 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. At the period ended April 30, 2010, the Funds had no unfunded loan commitments.
Short Sales
The Russell U.S. Quantitative Equity Fund 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 Fund 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 Fund must return the borrowed security. The Fund will realize a gain if the security declines in price between those dates. The making of short sales exposes the Fund to the risk of liability for the market value of the security that is sold (the amount of which increases as the market value of the underlying security increases), in addition to the costs associated with establishing, maintaining and closing out the short position.
| | |
| Notes to Financial Statements | | 295 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Although the Fund’s 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 Fund makes a short sale, the Fund 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 Fund is required to pledge assets in a segregated account maintained by the Fund’s custodian for the benefit of the broker. The Fund also may use securities it owns to meet any such collateral obligations. Until a Fund replaces a borrowed security in connection with a short sale, the Fund will: (a) maintain daily a segregated account, containing cash, cash equivalents, or liquid marketable securities, at such a level that the amount deposited in the segregated account plus the amount deposited with the broker as collateral will equal the current requirement under Regulation T promulgated by the Board of Governors of the Federal Reserve System under the authority of section 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, 2010, $1,234,266,582 was held as collateral.
Investments in Emerging Markets
Investing in emerging markets may involve special risks and considerations not typically associated with investing in the United States markets. These risks include revaluation of currencies, high rates of inflation, repatriation, restrictions on income and capital, and future adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, delayed settlements, and their prices may be more volatile than those of comparable securities in the United States.
Repurchase Agreements
The fixed income funds and the Russell Money Market Fund may enter into repurchase agreements. A repurchase agreement is an agreement under which the Fund acquires a fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the seller at an agreed upon price and date (normally the next business day). The resale price reflects an agreed upon interest rate effective for the period the security is held by the Fund and is unrelated to the interest rate on the security. The securities acquired by the Fund constitute collateral for the repurchase obligation. In these transactions, the securities acquired by the 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. In addition, RIMCo will monitor the Fund’s repurchase agreement transactions generally and will evaluate the credit worthiness of any bank, broker or dealer party to a repurchase agreement with the Fund. A Fund will not invest more than 15% (10% in the case of the Russell Money Market Fund) of its net assets (taken at current market value) in repurchase agreements maturing in more than seven days. The Russell Money Market Fund will only enter into repurchase agreements collateralized by U.S. government or agency obligations.
Mortgage-Related and Other Asset-Backed Securities
Certain Funds may invest in mortgage or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), 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 quality and value of the underlying assets may decline, or default. This has become an increasing risk for collateral related to sub-prime, Alt-A and non-conforming mortgage loans, especially in a declining residential real estate market. In addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.
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 the Fund receives the payments for reinvestment.
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.
| | |
| 296 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Through its investments in MBS, including those that are issued by private issuers, the Funds have exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage and credit markets generally. Private issuers include 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-governmental MBS may offer higher yields than those issued by government entities, 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. Nonconforming 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 non-conforming 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.
Unlike MBS issued or guaranteed by the U.S. government or a government sponsored entity (e.g., Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation)), 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 mortgages loans. In addition, MBS that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgage 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 may include MBS, loans, receivables or other assets. The value of the Funds’ asset-backed securities 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 asset-backed securities, 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 asset-backed securities have become an increasing risk for asset-backed securities 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.
Asset-backed securities (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. Asset-backed securities 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
| | |
| Notes to Financial Statements | | 297 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
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 asset-backed securities 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.
Forward Commitments
The Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time consistent with a Fund’s investment strategies. 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.
To be announced (“TBA”) is a forward mortgage-backed securities trade. 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. As of April 30, 2010, the Funds had cash collateral balances in connection with TBAs as follows:
| | | |
| | | Due to Broker |
Russell Investment Grade Bond Fund | | $ | 139,555 |
Russell Strategic Bond Fund | | | 8,340,000 |
Inflation-Indexed Bonds
Fixed income funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity.
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 and Credit 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 the credit risk, the Funds may 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 assets recorded in the financial statements (the “Assets”). Assets, which potentially expose the Funds to credit risk, consist principally of cash due from counterparties and investments. The extent of the Funds’ exposure to credit and counterparty risks in respect to the Assets approximates their carrying value as recorded in the Funds’ Statements of Assets and Liabilities.
On September 15, 2008, Lehman Brothers Holdings Inc. filed for protection under Chapter 11 of the United States Bankruptcy Code. On September 19, 2008, a proceeding under the Securities Investor Protection Act (SIPA) was commenced with respect to Lehman Brothers Inc., a broker-dealer. A trustee appointed under SIPA is administering the bankruptcy estate of Lehman
| | |
| 298 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Brothers Inc. Lehman Brothers International (Europe) was placed in administration under the UK Insolvency Act on September 15, 2008. Lehman Brothers Special Financing Inc., among other Lehman subsidiaries, filed for protection under Chapter 11 of the United States Bankruptcy Code on October 3, 2008. In connection with these filings, the Lehman Brothers group of companies (collectively “Lehman Brothers”) will be reorganized and/or liquidated in an orderly fashion, subject to court approval. Each Lehman Brothers entity is a separate legal entity that is subject to its own bankruptcy proceeding.
Certain Funds had direct holdings, swap agreements, and securities and derivatives transactions outstanding with Lehman Brothers entities as issuers, counterparties or guarantors at the time the relevant Lehman Brothers entities filed for protection or were placed in administration. The direct holdings and other derivative transactions associated with Lehman Brothers have been written down to their estimated recoverable values and incorporated as components of other receivables and liabilities on the Statements of Assets and Liabilities and net changes in realized gain (loss) or unrealized appreciation (depreciation) on the Statements of Operations. The Funds have also utilized certain netting arrangements to offset payables and receivables of Lehman securities.
RIMCo or the Funds’ Money Managers have delivered notices of default and early termination to the relevant Lehman Brothers entities where required. For transactions with Lehman Brothers counterparties, RIMCo or the Funds’ Money Managers have terminated trades, obtained quotations from brokers for replacement trades and, where deemed appropriate, re-opened positions with new counterparties.
The court overseeing all of the U.S. Lehman entities’ bankruptcy cases set filing deadlines for all those entities. The Lehman Brothers Inc. claims filing deadline was January 30, 2009 for all customer claims and June 1, 2009 for all general creditor claims related to Lehman Brothers Inc. In the case of all other U.S. Lehman entities, the court set filing deadlines of September 22, 2009 and November 2, 2009 (for certain “Program Securities”). To the extent that the Funds held accounts with Lehman Brothers Inc., the Funds filed the appropriate customer claims on January 29, 2009 and filed all other claims related to the U.S. Lehman entities on the foregoing deadlines. The relevant Funds have entered into a confidential settlement agreement with respect to certain claims for terminated derivatives transactions between the Funds, Lehman Brothers Special Financing Inc. and its parent company Lehman Brothers Holdings Inc.
| 3. | | Investment Transactions |
Securities
During the period ended April 30, 2010, 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 |
| | | | | | |
Russell U.S. Core Equity Fund | | $ | 2,256,141,818 | | $ | 2,447,453,917 |
Russell U.S. Quantitative Equity Fund | | | 2,227,714,611 | | | 2,668,976,834 |
Russell U.S. Growth Fund | | | 41,149,422 | | | 51,992,805 |
Russell U.S. Value Fund | | | 59,379,628 | | | 74,949,255 |
Russell U.S. Small & Mid Cap Fund | | | 713,936,159 | | | 768,346,090 |
Russell International Developed Markets Fund | | | 1,711,922,710 | | | 1,625,302,046 |
Russell Global Equity Fund | | | 1,138,643,399 | | | 482,900,132 |
Russell Emerging Markets Fund | | | 405,174,792 | | | 420,827,038 |
Russell Tax-Managed U.S. Large Cap Fund | | | 72,806,040 | | | 70,439,054 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 51,575,579 | | | 56,431,602 |
Russell Strategic Bond Fund | | | 4,573,319,293 | | | 4,780,077,626 |
Russell Investment Grade Bond Fund | | | 635,086,272 | | | 487,063,617 |
Russell Short Duration Bond Fund | | | 223,498,268 | | | 158,838,734 |
Russell Tax Exempt Bond Fund | | | 133,644,846 | | | 70,636,249 |
Russell Real Estate Securities Fund | | | 796,660,018 | | | 854,678,345 |
Purchases and sales of US Government and Agency obligations (excluding short-term investments, options, futures and repurchase agreements) were as follows:
| | | | | | |
| | | Purchases | | Sales |
| | | | | | |
Russell Strategic Bond Fund | | $ | 2,483,490,373 | | $
| 2,382,809,177
|
Russell Investment Grade Bond Fund | | | 360,166,836 | | | 241,766,466 |
Russell Short Duration Bond Fund | | | 266,063,617 | | | 77,509,758 |
| | |
| Notes to Financial Statements | | 299 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Written Options Contracts
Transactions in written options contracts for the period ended April 30, 2010 for the following Funds were as follows:
| | | | | | | | | | | | | | |
| | | Russell Strategic
Bond Fund | | | Russell Investment Grade
Bond Fund | |
| | | Number of
Contracts | | | Premiums
Received | | | Number of
Contracts | | | Premiums
Received | |
| | | | | | | | | | | | | | |
Outstanding October 31, 2009 | | 376 | | | $ | 4,306,648 | | | 390 | | | $ | 653,395 | |
Opened | | 3,248 | | | | 7,144,046 | | | 1,569 | | | | 1,913,334 | |
Closed | | (340 | ) | | | (127,738 | ) | | (208 | ) | | | (119,047 | ) |
Expired | | (1,366 | ) | | | (7,190,988 | ) | | (794 | ) | | | (948,603 | ) |
| | | | | | | | | | | | | | |
Outstanding April 30, 2010 | | 1,918 | | | $ | 4,131,968 | | | 957 | | | $ | 1,499,079 | |
| | | | | | | | | | | | | | |
| | | |
| | | Russell Short Duration
Bond Fund | | | | | | | |
| | | Number of
Contracts | | | Premiums
Received | | | | | | | |
Outstanding October 31, 2009 | | 38 | | | $ | 379,563 | | | | | | | | |
Opened | | 65 | | | | 856,774 | | | | | | | | |
Closed | | — | | | | — | | | | | | | | |
Expired | | (69 | ) | | | (297,237 | ) | | | | | | | |
| | | | | | | | | | | | | | |
Outstanding April 30, 2010 | | 34 | | | $ | 939,100 | | | | | | | | |
| | | | | | | | | | | | | | |
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 Fund receives cash (U.S. currency), U.S. Government or U.S. Government Agency obligations as collateral against the loaned securities. To the extent that a loan is collateralized by cash, such collateral is invested by the securities lending agent, State Street Bank and Trust Company (“State Street”) in short-term instruments, money market mutual funds and other short-term investments that meet certain quality and diversification requirements. The collateral received is recorded on a lending Fund’s Statement of Assets and Liabilities along with the related obligation to return the collateral.
Income generated from the investment of cash collateral, less negotiated rebate fees paid to participating brokers and transaction costs, is divided between the Fund and State Street and is recorded as income for the Fund. 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 State Street 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 market value of the loaned securities at the inception of each loan. The market value of the loaned securities is determined at the close of business of the Funds 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. Consequently, loans are made only to borrowers which are deemed to be creditworthy.
The Funds that participate in securities lending have some cash collateral invested in the State Street Securities Lending Quality Trust Fund (“SLQT”). The short-term portfolio instruments held by SLQT are valued on the basis of amortized cost. Issuances and redemptions of interests in SLQT are made on each business day (“valuation date”). Currently, interests in SLQT are purchased and redeemed at a constant net asset value of $1.00 per unit for daily operational liquidity purposes, although redemptions for certain other purposes may be in-kind. In the event that a significant disparity develops between the net asset value based on amortized cost and the market based net asset value of SLQT, the Trustee of SLQT may determine that continued redemption at a constant $1.00 net asset value would create inequitable results for the SLQT’s interest holders. In these circumstances, the Trustee of SLQT, in its sole discretion and acting on behalf of the SLQT interest holders, may direct that interests be redeemed at the market-based net asset value until such time as the disparity between the market-based and the constant net asset value per unit is deemed to be insignificant.
At April 30, 2010, the SLQT was transacting at its amortized cost value of $1.00 per unit for daily operational liquidity purposes. The SLQT’s market value per unit is lower than its amortized cost value per unit. Effective February 10, 2009, the Funds began valuing the units of SLQT for purposes of the Funds’ daily valuation calculation at the unit’s market value rather than the unit’s amortized cost value. Each Fund has earmarked liquid assets to cover the difference between SLQT’s market value per unit and its amortized cost value per unit.
| | |
| 300 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
The Funds that participate in securities lending invested a portion of their cash collateral in the Russell Money Market Fund from November 1, 2008 through October 5, 2009 and currently invest a portion of their cash collateral in the Russell U.S. Cash Collateral Fund an unregistered fund advised by RIMCo and administered by RFSC.
As of April 30, 2010, the non-cash collateral pledged for the securities on loan in the following funds was as follows:
| | | | | |
| | | Non-Cash
Collateral Value | | Non-Cash Collateral Holding |
| | | | | |
Russell U.S. Value Fund | | $ | 1,156,480 | | Pool of US Government Securities |
Russell U.S. Small & Mid Cap Fund | | | 1,508,843 | | Pool of US Government Securities |
Russell International Developed Markets Fund | | | 15,117,052 | | Pool of US Government Securities |
Russell Global Equity Fund | | | 5,897,139 | | Pool of US Government Securities |
Russell Emerging Markets Fund | | | 199,132 | | Pool of US Government Securities |
Russell Tax-Managed U.S. Large Cap Fund | | | 2,894,562 | | Pool of US Government Securities |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 351,375 | | Pool of US Government Securities |
Russell Strategic Bond Fund | | | 112,941,320 | | Pool of US Government Securities |
Russell Investment Grade Bond Fund | | | 60,721,932 | | Pool of US Government Securities |
Russell Real Estate Securities Fund | | | 8,181,305 | | Pool of US Government Securities |
Custodian
The Funds have entered into arrangements with their Custodian whereby custody credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ expenses. During the period ended April 30, 2010, the Funds’ custodian fees were reduced by the following amounts under these arrangements which are included in expense reductions on the Statements of Operations:
| | | |
| | | Amount |
| | | |
Russell U.S. Core Equity Fund | | $ | 14 |
Russell U.S. Quantitative Equity Fund | | | 34 |
Russell U.S. Growth Fund | | | 1 |
Russell U.S. Small & Mid Cap Fund | | | 3 |
Russell International Developed Markets Fund | | | 99 |
Russell Global Equity Fund | | | 48 |
Russell Emerging Markets Fund | | | 126 |
Russell Tax-Managed U.S. Large Cap Fund | | | 1 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 4 |
Russell Strategic Bond Fund | | | 2,260 |
Russell Investment Grade Bond Fund | | | 130 |
Russell Short Duration Bond Fund | | | 67 |
Russell Tax Exempt Bond Fund | | | 7 |
Russell Real Estate Securities Fund | | | 34 |
Russell Money Market Fund | | | 276 |
Brokerage Commissions
The Funds effect certain transactions through Recapture Services, division of BNY ConvergeEX Execution Solutions LLC (“LJR”) and its global network of correspondent brokers. LJR is a registered broker and is not an affiliate of the Funds or RIMCo. Trades placed through LJR and its correspondents are used (i) to obtain research services for RIMCo to assist RIMCo in its investment decision-making process in its capacity as advisor to the funds or (ii) to generate commission rebates to the Funds on whose behalf the trades were made. For purposes of trading to obtain research services for RIMCo or to generate commission rebates to the Funds, the Funds’ money managers are requested to and RIMCo may, with respect to transactions it places, effect transactions with or through LJR and its correspondents or other brokers only to the extent that the money managers or RIMCo believe that the Funds will receive best execution. In addition, RIMCo recommends targets for the amount of trading that money managers allocate through LJR based upon asset class, investment style and other factors. Research services provided to RIMCo by LJR or other brokers include performance measurement statistics, fund analytics systems and market monitoring systems. Research services will generally be obtained from unaffiliated third parties at market rates. Research provided to RIMCo may benefit the particular Funds generating the trading activity and may also benefit other Funds within RIC and other funds and clients managed or advised by RIMCo or its affiliates. Similarly, the Funds may benefit from research provided with respect to trading by those other funds and clients. In some cases, research may also be provided by other non–affiliated brokers.
| | |
| Notes to Financial Statements | | 301 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
LJR may also rebate to the Funds a portion of commissions earned on certain trading by the Funds through LJR and their correspondents in the form of commission recapture. Commission recapture is paid solely to those Funds generating the applicable trades. Commission recapture is generated on the instructions of the Soft Dollar Committee once RIMCo’s research budget has been met, as determined annually in the Soft Dollar Committee budgeting process.
Additionally, the Funds paid brokerage commissions to non-affiliated brokers who provided brokerage and research services to the Adviser.
| 4. | | Related Party Transactions, Fees and Expenses |
Adviser and Administrator
RIMCo is the Funds’ adviser and RFSC, a wholly-owned subsidiary of RIMCo, is the Funds’ administrator and transfer agent. RIMCo is a wholly-owned subsidiary of Frank Russell Company (a subsidiary of The Northwestern Mutual Life Insurance Company). Frank Russell Company provides ongoing money manager research and trade placement services to RIC and RIMCo.
The Investment Company Funds are permitted to invest their cash reserves (i.e., cash awaiting investment or cash held to meet redemption requests or to pay expenses) in the Russell U.S. Cash Management Fund an unregistered Fund advised by RIMCo. As of April 30, 2010, the Investment Company Funds have invested $1,828,586,632 in the Russell U.S. Cash Management Fund. In addition, a portion of the collateral received from the Investment Company’s securities lending program in the amount of $1,150,000,000 is invested in the Russell U.S. Cash Collateral Fund an unregistered Fund advised by RIMCo.
The advisory and administrative fees specified in the table below are based upon the average daily net assets of each Fund and are payable monthly.
| | | | | | |
| | | Annual Rate | |
| Funds | | Adviser | | | Administrator | |
Russell U.S. Core Equity | | 0.55 | % | | .05 | % |
Russell U.S. Quantitative Equity | | 0.55 | | | .05 | |
Russell U.S. Growth | | 0.80 | | | .05 | |
Russell U.S. Value | | 0.70 | | | .05 | |
Russell U.S. Small & Mid Cap | | 0.70 | | | .05 | |
Russell International Developed Markets | | 0.70 | | | .05 | |
Russell Global Equity | | 0.95 | | | .05 | |
Russell Emerging Markets | | 1.15 | | | .05 | |
Russell Tax-Managed U.S. Large Cap | | 0.70 | | | .05 | |
Russell Tax-Managed U.S. Mid & Small Cap | | 0.98 | | | .05 | |
Russell Strategic Bond | | 0.50 | | | .05 | |
Russell Investment Grade Bond | | 0.25 | | | .05 | |
Russell Short Duration Bond | | 0.45 | | | .05 | |
Russell Tax Exempt Bond | | 0.30 | | | .05 | |
Russell Real Estate Securities | | 0.80 | | | .05 | |
Russell Money Market | | 0.20 | | | .05 | |
The following shows the respective totals for advisory and administrative fees for the period ended April 30, 2010.
| | | | | | |
| | | Advisory | | Administrative |
| | | | | | |
Russell U.S. Core Equity Fund | | $ | 13,032,194 | | $ | 1,184,745 |
Russell U.S. Quantitative Equity Fund | | | 11,684,531 | | | 1,062,230 |
Russell U.S. Growth Fund | | | 379,846 | | | 23,740 |
Russell U.S. Value Fund | | | 538,684 | | | 38,478 |
Russell U.S. Small & Mid Cap Fund | | | 5,251,981 | | | 375,141 |
Russell International Developed Markets Fund | | | 15,540,551 | | | 1,110,039 |
Russell Global Equity Fund | | | 6,056,831 | | | 318,781 |
Russell Emerging Markets Fund | | | 7,627,694 | | | 331,639 |
Russell Tax-Managed U.S. Large Cap Fund | | | 1,271,061 | | | 90,790 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 692,941 | | | 35,354 |
Russell Strategic Bond Fund | | | 18,531,679 | | | 1,853,168 |
Russell Investment Grade Bond Fund | | | 1,452,677 | | | 290,535 |
Russell Short Duration Bond Fund | | | 1,495,805 | | | 166,200 |
Russell Tax Exempt Bond Fund | | | 724,997 | | | 120,833 |
Russell Real Estate Securities Fund | | | 7,370,255 | | | 460,641 |
Russell Money Market Fund | | | 636,504 | | | 159,126 |
| | |
| 302 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
For the Russell U.S. Growth Fund RIMCo has contractually agreed, at least until February 28, 2011, to waive up to the full amount of its 0.80% advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses exceed 0.98% of the average daily net assets of that Fund on an annual basis. This waiver may not be terminated during the relevant period except with Board approval. Direct Fund-level expenses for the Russell U.S. Growth Fund do not include 12b-1, shareholder services, transfer agency fees, the expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund or extraordinary expenses. The total amount of the waiver for the period ended April 30, 2010 was $81,401. There were no reimbursements for the period ended April 30, 2010.
For the Russell Tax-Managed U.S. Mid & Small Cap Fund RIMCo has contractually agreed, at least until February 28, 2011, to waive up to the full amount of its 0.98% advisory fees 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 may not be terminated during the relevant period except with Board approval. Direct Fund-level expenses for the Russell Tax-Managed U.S. Mid & Small Cap Fund do not include 12b-1 fees, shareholder services fees, transfer agency fees, the expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund or extraordinary expenses. The total amount of the waiver for the period ended April 30, 2010 was $53,472. There were no reimbursements for the period ended April 30, 2010.
For the Russell Strategic Bond Fund RIMCo had contractually agreed, at least until February 28, 2010, to waive 0.07% of its 0.50% advisory fee. The total amount of the waiver from November 1, 2010 through February 28, 2010 was $1,733,726.
Effective March 1,2010 for the Russell Strategic Bond Fund, RIMCo has contractually agreed, at least until February 28, 2011, to waive 0.01% of its 0.50% advisory fee. This waiver may not be terminated during the relevant period except with Board approval. The total amount of the waiver from March 1, 2010 through April 30, 2010 was $122,958.
For the Russell Money Market Fund RIMCo has contractually agreed, at least until February 28, 2011, to waive 0.15% of its 0.20% advisory fee. 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, 2010 was $477,378.
To maintain certain net yields for any Class of Shares of the Russell Money Market Fund, RIMCo may temporarily and voluntarily waive, reduce or reimburse all or any portion of: (i) first, to the extent necessary, the Fund’s Transfer Agency Fee; (ii) second, to the extent necessary, the Fund’s Advisory Fee; and (iii) third, to the extent necessary, the Fund’s Administrative Fee each waiver, reduction or reimbursement in an amount and for a period of time as determined by RIMCo.
RIMCo may recoup from the Russell Money Market Fund any portion of the Transfer Agency, Advisory or Administrative Fee waived, reduced or reimbursed (the “Reimbursement Amount”) pursuant to these arrangements during the previous 36 months, provided that such amount paid to RIMCo will not: 1) exceed 0.0049% of the class of the Fund’s average net assets; 2) exceed the total Reimbursement Amount; 3) include any amounts previously reimbursed to RIMCo; or 4) cause any class of the Fund to maintain a net negative yield. There is no guarantee that the Fund will maintain a positive net yield.
As of April 30, 2010, RIMCo has reimbursed the Fund for transfer agency, advisory, and administrative fees in the amount of $31,734, $159,126 and $100,181 respectively. As described above, RIMCo has the right to recoup this amount from the Fund in the future, in accordance with the conditions described above.
The Adviser does not have the ability to recover amounts waived or reimbursed from previous periods expect the recoupment referenced above.
Capital Contributions
On November 3, 2009 and January 31, 2010 Frank Russell Company made capital contributions to the Russell Money Market Fund in the amount of $1,574,903 and $285,073 respectively. Both contributions were made to maintain a market-based NAV.
| | |
| Notes to Financial Statements | | 303 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Transfer and Dividend Disbursing Agent
RFSC serves as transfer agent and provides dividend disbursing services to the Funds. For this service, RFSC is paid a fee based upon the average daily net assets of the Funds for transfer agency and dividend disbursing services. RFSC 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, 2010 were as follows:
| | | |
| | | Amount |
Russell U.S. Core Equity Fund | | $ | 2,063,969 |
Russell U.S. Quantitative Equity Fund | | | 1,793,795 |
Russell U.S. Growth Fund | | | 64,812 |
Russell U.S. Value Fund | | | 119,736 |
Russell U.S. Small & Mid Cap Fund | | | 736,700 |
Russell International Developed Markets Fund | | | 1,962,972 |
Russell Global Equity Fund | | | 540,732 |
Russell Emerging Markets Fund | | | 862,166 |
Russell Tax-Managed U.S. Large Cap Fund | | | 326,511 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 127,234 |
Russell Strategic Bond Fund | | | 3,054,751 |
Russell Investment Grade Bond Fund | | | 456,974 |
Russell Short Duration Bond Fund | | | 443,720 |
Russell Tax Exempt Bond Fund | | | 434,590 |
Russell Real Estate Securities Fund | | | 1,146,276 |
Russell Money Market Fund | | | 571,219 |
RFSC had contractually agreed to waive, through February 28, 2010, a portion of its transfer agency fees as follows:
| | | |
| Funds/Classes | | Waivers | |
Russell U.S. Core Equity-Class E | | 0.13 | % |
Russell U.S. Core Equity-Class I | | 0.05 | |
Russell U.S. Quantitative Equity-Class E | | 0.13 | |
Russell U.S. Quantitative Equity-Class I | | 0.05 | |
Russell U.S. Growth-Class I | | 0.05 | |
Russell U.S. Small & Mid Cap-Class E | | 0.13 | |
Russell International Developed Markets-Class E | | 0.13 | |
Russell International Developed Markets-Class I | | 0.05 | |
Russell Tax-Managed U.S. Large Cap-Class C, E & S | | 0.08 | |
Russell Tax-Managed U.S. Mid & Small Cap-Class C, E & S | | 0.03 | |
Russell Strategic Bond-Class A, C & S | | 0.02 | |
Russell Strategic Bond-Class E | | 0.13 | |
Russell Strategic Bond-Class I | | 0.05 | |
Russell Investment Grade Bond-Class E | | 0.13 | |
Russell Investment Grade Bond-Class I | | 0.05 | |
Russell Short Duration Bond-Class A, C, E & S | | 0.08 | |
Russell Tax Exempt Bond-Class C, E & S | | 0.08 | |
Russell Money Market-Class A | | 0.01 | |
Russell Money Market-Class S | | 0.12 | |
| | |
| 304 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Effective March 1, 2010, RFSC has contractually agreed to waive, at least through February 28, 2011, a portion of its transfer agency fees as follows:
| | | |
| Funds/Classes | | Waivers | |
Russell U.S. Core Equity-Class E | | 0.10 | % |
Russell U.S. Quantitative Equity-Class E | | 0.10 | |
Russell U.S. Growth-Class I | | 0.05 | |
Russell U.S. Small & Mid Cap-Class E | | 0.10 | |
Russell International Developed Markets-Class E | | 0.10 | |
Russell Tax-Managed U.S. Large Cap-Class C, E & S | | 0.08 | |
Russell Tax-Managed U.S. Mid & Small Cap-Class C, E & S | | 0.03 | |
Russell Strategic Bond-Class A, C & S | | 0.02 | |
Russell Strategic Bond-Class E | | 0.10 | |
Russell Investment Grade Bond-Class E | | 0.10 | |
Russell Short Duration Bond-Class A, C, E & S | | 0.08 | |
Russell Tax Exempt Bond-Class C, E & S | | 0.08 | |
Russell Money Market-Class A | | 0.01 | |
Russell Money Market-Class S | | 0.12 | |
For the period ended April 30, 2010, the total transfer agent fee waivers are as follows:
| | | |
| | | Amount |
Russell U.S. Core Equity Fund | | $ | 203,965 |
Russell U.S. Quantitative Equity Fund | | | 170,326 |
Russell U.S. Growth Fund | | | 12,102 |
Russell U.S. Small & Mid Cap Fund | | | 21,709 |
Russell International Developed Markets Fund | | | 206,091 |
Russell Tax-Managed U.S. Large Cap Fund | | | 145,165 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 21,211 |
Russell Strategic Bond Fund | | | 549,168 |
Russell Investment Grade Bond Fund | | | 91,820 |
Russell Short Duration Bond Fund | | | 195,476 |
Russell Tax Exempt Bond Fund | | | 192,903 |
Russell Money Market Fund | | | 539,485 |
Distributor and Shareholder Servicing
Russell Financial Services, Inc. (the “Distributor”), a wholly owned subsidiary of RIMCo, serves as a distributor for RIC, pursuant to the distribution agreement with the Investment Company.
The Investment Company has a distribution plan pursuant to Rule 12b-1 (the “Plan”) under the 1940 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 were primarily intended to result in the sale of the Class A and Class C shares subject to the distribution plan. With the exception of the Russell Money Market Fund, the 12b-1 distribution payments shall not exceed 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. The 12b-1 distribution payments shall not exceed 0.15% of the Russell Money Market Fund’s average daily net assets of the Fund’s Class A shares on an annual basis.
To maintain a certain net yield for Class A shares of the Russell Money Market Fund, payments of the 12b-1 distribution fees on these shares have been temporarily suspended through June 30, 2010.
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, subject to certain exclusions.
| | |
| Notes to Financial Statements | | 305 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
For the period ended April 30, 2010, the Distributor retained the following amounts in sales charges:
| | | |
| Contingent Deferred Sales Charges | | Class A Shares |
| | | |
Russell U.S. Small & Mid Cap Fund | | $ | 10 |
Russell Strategic Bond Fund | | | 10,000 |
Russell Money Market Fund | | | 184 |
For the period ended April 30, 2010, the sales commissions paid to the selling agents for the sales of Class A shares are as follows:
| | | | | | |
| | | Aggregate
Front-End
Sales Charges
on Class A Shares | | Class A Front-End
Sales Charges
Retained by
Distributor |
| | | | | | |
Russell U.S. Core Equity Fund | | $ | 50,871 | | $ | 9,517 |
Russell U.S. Quantitative Equity Fund | | | 25,936 | | | 4,828 |
Russell U.S. Small & Mid Cap Fund | | | 40,167 | | | 7,156 |
Russell International Developed Markets Fund | | | 36,505 | | | 6,811 |
Russell Global Equity Fund | | | 27,930 | | | 4,725 |
Russell Emerging Markets Fund | | | 63,516 | | | 9,613 |
Russell Strategic Bond Fund | | | 62,858 | | | 12,775 |
Russell Short Duration Bond Fund | | | 28,945 | | | 5,911 |
Russell Real Estate Securities Fund | | | 63,465 | | | 9,779 |
Accrued Fees Payable to Affiliates
Accrued fees payable to affiliates as April 30, 2010 were as follows:
| | | | | | | | | | | | | | | | | | |
| | | Russell U.S. Core
Equity Fund | | Russell U.S.
Quantitative Equity
Fund | | Russell U.S.
Growth Fund | | Russell U.S.
Value Fund | | Russell U.S.
Small & Mid Cap
Fund | | Russell
International
Developed
Markets Fund |
| | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 2,208,980 | | $ | 1,836,789 | | $ | 49,572 | | $ | 92,442 | | $ | 942,293 | | $ | 2,735,009 |
Administration fees | | | 200,816 | | | 166,981 | | | 3,986 | | | 6,603 | | | 67,307 | | | 195,358 |
Distribution fees | | | 59,563 | | | 50,329 | | | 3,874 | | | 7,306 | | | 25,042 | | | 53,246 |
Shareholder servicing fees | | | 37,813 | | | 31,102 | | | 2,508 | | | 3,330 | | | 15,207 | | | 35,230 |
Transfer agent fees | | | 351,669 | | | 278,007 | | | 9,128 | | | 20,505 | | | 130,583 | | | 337,155 |
Trustee fees | | | — | | | 1,153 | | | 175 | | | 2,300 | | | — | | | — |
| | | | | | | | | | | | | | | | | | |
| | $ | 2,858,841 | | $ | 2,364,361 | | $ | 69,243 | | $ | 132,486 | | $ | 1,180,432 | | $ | 3,355,998 |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | Russell Global
Equity Fund | | Russell
Emerging Markets
Fund | | Russell
Tax-Managed
U.S. Large Cap
Fund | | Russell
Tax-Managed
U.S. Small
& Mid Cap Fund | | Russell
Strategic Bond
Fund | | Russell
Investment
Grade Bond
Fund |
| | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 1,465,209 | | $ | 1,321,023 | | $ | 224,698 | | $ | 116,734 | | $ | 3,356,439 | | $ | 332,082 |
Administration fees | | | 77,116 | | | 57,436 | | | 16,050 | | | 6,385 | | | 304,499 | | | 66,416 |
Distribution fees | | | 8,395 | | | 28,277 | | | 8,544 | | | 5,293 | | | 78,366 | | | 23,653 |
Shareholder servicing fees | | | 8,917 | | | 15,292 | | | 6,424 | | | 2,480 | | | 52,834 | | | 19,206 |
Transfer agent fees | | | 125,283 | | | 148,754 | | | 32,100 | | | 19,157 | | | 461,085 | | | 96,778 |
Trustee fees | | | — | | | — | | | — | | | 111 | | | — | | | 442 |
| | | | | | | | | | | | | | | | | | |
| | $ | 1,684,920 | | $ | 1,570,782 | | $ | 287,816 | | $ | 150,160 | | $ | 4,253,223 | | $ | 538,577 |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | Russell Short
Duration Bond
Fund | | Russell Tax Exempt
Bond Fund | | Russell Real
Estate Securities
Fund | | Russell Money
Market Fund | | | | |
| | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 272,470 | | $ | 126,299 | | $ | 1,335,482 | | $ | 29,301 | | | | | | |
Administration fees | | | 30,274 | | | 21,050 | | | 83,468 | | | 20,241 | | | | | | |
Distribution fees | | | 53,025 | | | 17,687 | | | 38,024 | | | 6,336 | | | | | | |
Shareholder servicing fees | | | 20,463 | | | 11,716 | | | 20,030 | | | — | | | | | | |
Transfer agent fees | | | 45,969 | | | 42,100 | | | 210,645 | | | 4,052 | | | | | | |
Trustee fees | | | — | | | — | | | — | | | 20,045 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | $ | 422,201 | | $ | 218,852 | | $ | 1,687,649 | | $ | 79,975 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | |
| 306 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Affiliated Brokerage Commissions
The Funds will effect certain transactions through Russell Implementation Services Inc. (“RIS”) and its global network of unaffiliated correspondent brokers. RIS is a registered broker and investment adviser and an affiliate of RIMCo. Trades placed through RIS and its correspondents are made (i) to manage trading associated with changes in managers, rebalancing across existing managers, cash flows and other portfolio transitions or (ii) to execute portfolio securities transactions for each Fund’s assets that RIMCo determines not to allocate to money managers and for each Fund’s cash reserves.
Board of Trustees
The Russell Fund Complex consists of RIC, which has 37 Funds, and RIF, which has nine Funds. Each of the Trustees is a Trustee for both RIC and RIF. During the period, the Russell Fund Complex paid each of its independent Trustees a retainer of $72,000 per year, $6,500 for each regular quarterly meeting attended in person, $2,500 for each special meeting attended in person, and $2,500 for each Audit Committee meeting, Nominating and Governance Committee meeting, Investment Committee meeting or any other committee meeting established and approved by the Board that is attended in person. Each Trustee receives a $1,000 fee for attending quarterly and special meetings and a $500 fee for attending committee meetings by phone instead of receiving the full fee had the member attended in person. Trustees’ out of pocket expenses are also paid by the Russell Fund Complex. The Audit Committee Chair and Investment Committee Chair are each paid a fee of $12,000 per year and the Nominating and Governance Committee chair is paid a fee of $6,000 per year. The chairman of the Board receives additional annual compensation of $72,000.
At October 31, 2009, 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:
| | | | | | | | | | | | | | |
| Funds | | 10/31/10 | | 10/31/11 | | 10/31/12 | | 10/31/13 | | |
| | | | | | | | | | | | | | |
Russell U.S. Core Equity | | $ | — | | $ | — | | $ | — | | $ | — | | |
Russell U.S. Quantitative Equity | | | — | | | — | | | — | | | — | | |
Russell U.S. Growth | | | — | | | — | | | — | | | — | | |
Russell U.S. Value | | | 362,611 | | | — | | | — | | | — | | |
Russell U.S. Small & Mid Cap | | | — | | | — | | | — | | | — | | |
Russell International Developed Markets | | | — | | | — | | | — | | | — | | |
Russell Global Equity | | | — | | | — | | | — | | | — | | |
Russell Emerging Markets | | | — | | | — | | | — | | | — | | |
Russell Tax-Managed U.S. Large Cap | | | 46,414,873 | | | — | | | — | | | — | | |
Russell Tax-Managed U.S. Mid & Small Cap | | | — | | | — | | | — | | | — | | |
Russell Strategic Bond | | | — | | | — | | | — | | | — | | |
Russell Investment Grade Bond | | | — | | | — | | | — | | | — | | |
Russell Short Duration Bond | | | — | | | — | | | — | | | 4,738,363 | | |
Russell Tax Exempt Bond | | | — | | | — | | | 140,435 | | | — | | |
Russell Real Estate Securities | | | — | | | — | | | — | | | — | | |
Russell Money Market | | | — | | | — | | | — | | | — | | |
| Funds | | 10/31/14 | | 10/31/15 | | 10/31/16 | | 10/31/17 | | Totals |
Russell U.S. Core Equity | | $ | — | | $ | 99,028,085 | | $ | 346,861,203 | | $ | 876,346,251 | | 1,322,235,539 |
Russell U.S. Quantitative Equity | | | — | | | 122,943,623 | | | 165,226,628 | | | 1,026,703,666 | | 1,314,873,917 |
Russell U.S. Growth | | | — | | | — | | | 19,637,602 | | | 24,407,884 | | 44,045,486 |
Russell U.S. Value | | | — | | | — | | | 70,860,794 | | | 60,819,183 | | 132,042,588 |
Russell U.S. Small & Mid Cap | | | — | | | 111,340,885 | | | 180,498,346 | | | 369,191,603 | | 661,030,834 |
Russell International Developed Markets | | | — | | | 67,525,118 | | | 404,357,668 | | | 790,159,939 | | 1,262,042,725 |
Russell Global Equity | | | — | | | — | | | 170,138,657 | | | 223,407,611 | | 393,546,268 |
Russell Emerging Markets | | | — | | | — | | | — | | | 122,286,228 | | 122,286,228 |
Russell Tax-Managed U.S. Large Cap | | | — | | | — | | | 52,637,286 | | | 43,361,512 | | 142,413,671 |
Russell Tax-Managed U.S. Mid & Small Cap | | | — | | | — | | | 11,436,638 | | | 22,547,248 | | 33,983,886 |
Russell Strategic Bond | | | — | | | — | | | — | | | 33,015,391 | | 33,015,391 |
Russell Investment Grade Bond | | | — | | | — | | | — | | | — | | — |
Russell Short Duration Bond | | | 7,439,440 | | | 1,010,941 | | | — | | | 10,599,328 | | 23,788,072 |
Russell Tax Exempt Bond | | | 634,298 | | | 1,197,042 | | | 4,001,028 | | | — | | 5,972,803 |
Russell Real Estate Securities | | | — | | | — | | | 82,472,749 | | | 226,876,449 | | 309,349,198 |
Russell Money Market | | | — | | | — | | | 1,173,802 | | | — | | 1,173,802 |
| | |
| Notes to Financial Statements | | 307 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Russell U.S. Value Fund had a capital loss carryforward of $362,611 that it acquired from the Equity Income Fund which will expire on October 31, 2010.
Russell U.S. Core Equity Fund had a capital loss carryforward of $99,028,085 that it acquired from the Diversified Equity Fund which will expire on October 31, 2015. The capital loss carryforward of Russell U.S. Core Equity Fund may be subject to loss limitations.
Russell U.S. Quantitative Equity Fund had a capital loss carryforward of $122,943,623 that it acquired from the Quantitative Equity Fund which will expire on October 31, 2015. The capital loss carryforward of Russell U.S. Quantitative Equity Fund may be subject to loss limitations.
Russell U.S. Small & Mid Cap Fund had a capital loss carryforward of $111,340,885 that it acquired from the Special Growth Fund which will expire on October 31, 2015. The capital loss carryforward of Russell U.S. Small & Mid Cap Fund may be subject to loss limitations.
Russell International Developed Markets Fund had a capital loss carryforward of $67,525,118 that it acquired from the Internation Securities Fund. The capital loss carryforward of the Russell International Developed Markets Fund may be subject to loss limitations.
At April 30, 2010, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Russell U.S. Core
Equity Fund | | | Russell U.S.
Quantitative Equity
Fund | | | Russell U.S. Growth
Fund | | | Russell U.S. Value
Fund | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 4,525,322,330 | | | $ | 3,993,619,373 | | | $ | 86,401,243 | | | $ | 166,004,845 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | | 620,507,900 | | | | 466,752,199 | | | | 16,690,792 | | | | 22,411,065 | | | | | | | | | |
Unrealized Depreciation | | | (65,264,734 | ) | | | (91,348,164 | ) | | | (1,230,198 | ) | | | (3,744,580 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 555,243,166 | | | $ | 375,404,035 | | | $ | 15,460,594 | | | $ | 18,666,485 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | Russell U.S. Small &
Mid Cap Fund | | | Russell International
Developed Markets
Fund | | | Russell Global
Equity Fund | | | Russell Emerging
Markets Fund | | | Russell Tax-
Managed U.S.
Large Cap Fund | | | | |
Cost of Investments | | $ | 1,703,304,083 | | | $ | 4,662,549,169 | | | $ | 1,775,324,799 | | | $ | 1,173,414,596 | | | $ | 341,564,103 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | | 320,809,707 | | | | 302,261,696 | | | | 179,273,181 | | | | 354,028,715 | | | | 95,623,432 | | | | | |
Unrealized Depreciation | | | (19,190,672 | ) | | | (122,235,137 | ) | | | (22,332,259 | ) | | | (26,562,847 | ) | | | (6,144,548 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 301,619,035 | | | $ | 180,026,559 | | | $ | 156,940,921 | | | $ | 327,465,868 | | | $ | 89,478,884 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | Russell Tax-
Managed U.S. Mid
& Small Cap Fund | | | Russell Strategic
Bond Fund | | | Russell Investment
Grade Bond Fund | | | Russell Short
Duration Bond Fund | | | Russell Tax
Exempt Bond
Fund | | | Russell Real Estate
Securities Fund | |
Cost of Investments | | $ | 194,199,894 | | | $ | 8,440,920,142 | | | $ | 1,908,994,211 | | | $ | 721,550,002 | | | $ | 504,255,372 | | | $ | 2,159,172,334 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | | 33,000,159 | | | | 269,008,079 | | | | 39,925,442 | | | | 18,993,081 | | | | 19,850,289 | | | | 406,184,618 | |
Unrealized Depreciation | | | (4,847,239 | ) | | | (399,558,325 | ) | | | (47,176,258 | ) | | | (7,111,537 | ) | | | (2,137,643 | ) | | | (10,307,430 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 28,152,920 | | | $ | (130,550,246 | ) | | $ | (7,250,816 | ) | | $ | 11,881,544 | | | $ | 17,712,646 | | | $ | 395,877,188 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| 308 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) |
Share transactions for the periods ended April 30, 2010 and October 31, 2009 were as follows:
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell U.S. Core Equity Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 139 | | | 447 | | | $ | 3,448 | | | $ | 8,462 | |
Proceeds from reinvestment of distributions | | 2 | | | 7 | | | | 53 | | | | 156 | |
Payments for shares redeemed | | (119 | ) | | (318 | ) | | | (2,959 | ) | | | (5,958 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 22 | | | 136 | | | | 542 | | | | 2,660 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 161 | | | 629 | | | | 3,925 | | | | 12,094 | |
Proceeds from reinvestment of distributions | | — | | | 13 | | | | 6 | | | | 231 | |
Payments for shares redeemed | | (480 | ) | | (1,188 | ) | | | (11,833 | ) | | | (22,547 | ) |
| | | | | | | | | | | | | | |
Total net increase (decrease) | | (319 | ) | | (546 | ) | | | (7,902 | ) | | | (10,222 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 290 | | | 1,147 | | | | 7,179 | | | | 21,991 | |
Proceeds from reinvestment of distributions | | 10 | | | 45 | | | | 259 | | | | 848 | |
Payments for shares redeemed | | (806 | ) | | (1,592 | ) | | | (20,032 | ) | | | (31,503 | ) |
| | | | | | | | | | | | | | |
Total net increase (decrease) | | (506 | ) | | (400 | ) | | | (12,594 | ) | | | (8,664 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 10,417 | | | 12,011 | | | | 256,877 | | | | 230,227 | |
Proceeds from reinvestment of distributions | | 143 | | | 466 | | | | 3,559 | | | | 8,973 | |
Payments for shares redeemed | | (6,400 | ) | | (18,915 | ) | | | (158,557 | ) | | | (351,959 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 4,160 | | | (6,438 | ) | | | 101,879 | | | | (112,759 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Advisory Fees | | 11,812 | | | 23,075 | | | | 293,863 | | | | 442,726 | |
Administrative Fees | | 216 | | | 684 | | | | 5,372 | | | | 13,195 | |
Payments for shares redeemed | | (13,905 | ) | | (21,600 | ) | | | (341,848 | ) | | | (403,289 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (1,877 | ) | | 2,159 | | | | (42,613 | ) | | | 52,632 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,515 | | | 8,287 | | | | 62,056 | | | | 157,410 | |
Proceeds from reinvestment of distributions | | 381 | | | 1,264 | | | | 9,462 | | | | 24,406 | |
Payments for shares redeemed | | (15,655 | ) | | (12,424 | ) | | | (381,109 | ) | | | (236,317 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (12,759 | ) | | (2,873 | ) | | | (309,591 | ) | | | (54,501 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (11,279 | ) | | (7,962 | ) | | $ | (270,279 | ) | | $ | (130,854 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 309 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell U.S. Quantitative Equity Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 81 | | | 294 | | | $ | 2,125 | | | $ | 6,159 | |
Proceeds from reinvestment of distributions | | 3 | | | 8 | | | | 83 | | | | 163 | |
Payments for shares redeemed | | (131 | ) | | (217 | ) | | | (3,434 | ) | | | (4,435 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (47 | ) | | 85 | | | | (1,226 | ) | | | 1,887 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 77 | | | 318 | | | | 2,000 | | | | 6,588 | |
Proceeds from reinvestment of distributions | | 4 | | | 13 | | | | 96 | | | | 263 | |
Payments for shares redeemed | | (416 | ) | | (1,071 | ) | | | (10,817 | ) | | | (21,987 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (335 | ) | | (740 | ) | | | (8,721 | ) | | | (15,136 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 218 | | | 864 | | | | 5,664 | | | | 17,747 | |
Proceeds from reinvestment of distributions | | 15 | | | 47 | | | | 396 | | | | 975 | |
Payments for shares redeemed | | (734 | ) | | (1,498 | ) | | | (19,218 | ) | | | (32,483 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (501 | ) | | (587 | ) | | | (13,158 | ) | | | (13,761 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,597 | | | 9,143 | | | | 67,215 | | | | 190,213 | |
Proceeds from reinvestment of distributions | | 165 | | | 459 | | | | 4,325 | | | | 9,600 | |
Payments for shares redeemed | | (10,607 | ) | | (15,413 | ) | | | (278,062 | ) | | | (313,114 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (7,845 | ) | | (5,811 | ) | | | (206,522 | ) | | | (113,301 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 6,459 | | | 18,750 | | | | 168,804 | | | | 392,433 | |
Proceeds from reinvestment of distributions | | 298 | | | 731 | | | | 7,829 | | | | 15,327 | |
Payments for shares redeemed | | (14,720 | ) | | (18,746 | ) | | | (385,020 | ) | | | (381,259 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (7,963 | ) | | 735 | | | | (208,387 | ) | | | 26,501 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,388 | | | 8,109 | | | | 35,912 | | | | 160,619 | |
Proceeds from reinvestment of distributions | | 502 | | | 1,303 | | | | 13,180 | | | | 27,289 | |
Payments for shares redeemed | | (15,594 | ) | | (11,397 | ) | | | (402,028 | ) | | | (236,105 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (13,704 | ) | | (1,985 | ) | | | (352,936 | ) | | | (48,197 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (30,395 | ) | | (8,303 | ) | | $ | (790,950 | ) | | $ | (162,007 | ) |
| | | | | | | | | | | | | | |
| | |
| 310 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell U.S Growth Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 45 | | | 248 | | | $ | 301 | | | $ | 1,251 | |
Proceeds from reinvestment of distributions | | — | | | — | | | | — | | | | — | |
Payments for shares redeemed | | (114 | ) | | (500 | ) | | | (740 | ) | | | (2,452 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (69 | ) | | (252 | ) | | | (439 | ) | | | (1,201 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 41 | | | 134 | | | | 286 | | | | 754 | |
Proceeds from reinvestment of distributions | | — | | | 1 | | | | — | | | | 5 | |
Payments for shares redeemed | | (116 | ) | | (270 | ) | | | (831 | ) | | | (1,508 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (75 | ) | | (135 | ) | | | (545 | ) | | | (749 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 429 | | | 1,868 | | | | 3,125 | | | | 10,070 | |
Proceeds from reinvestment of distributions | | 9 | | | 61 | | | | 63 | | | | 312 | |
Payments for shares redeemed | | (1,566 | ) | | (4,864 | ) | | | (11,171 | ) | | | (26,727 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (1,128 | ) | | (2,935 | ) | | | (7,983 | ) | | | (16,345 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 945 | | | 2,550 | | | | 6,932 | | | | 13,445 | |
Proceeds from reinvestment of distributions | | — | | | 24 | | | | 3 | | | | 120 | |
Payments for shares redeemed | | (1,278 | ) | | (5,370 | ) | | | (9,207 | ) | | | (29,252 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (333 | ) | | (2,796 | ) | | | (2,272 | ) | | | (15,687 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (1,605 | ) | | (6,118 | ) | | $ | (11,239 | ) | | $ | (33,982 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 311 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell U.S. Value Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 87 | | | 173 | | | $ | 625 | | | $ | 983 | |
Proceeds from reinvestment of distributions | | — | | | 10 | | | | — | | | | 51 | |
Payments for shares redeemed | | (205 | ) | | (508 | ) | | | (1,456 | ) | | | (2,627 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (118 | ) | | (325 | ) | | | (831 | ) | | | (1,593 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 70 | | | 155 | | | | 514 | | | | 803 | |
Proceeds from reinvestment of distributions | | 1 | | | 13 | | | | 10 | | | | 65 | |
Payments for shares redeemed | | (308 | ) | | (543 | ) | | | (2,298 | ) | | | (3,029 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (237 | ) | | (375 | ) | | | (1,774 | ) | | | (2,161 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 590 | | | 2,038 | | | | 4,302 | | | | 10,627 | |
Proceeds from reinvestment of distributions | | 22 | | | 129 | | | | 157 | | | | 677 | |
Payments for shares redeemed | | (1,054 | ) | | (4,754 | ) | | | (7,576 | ) | | | (25,281 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (442 | ) | | (2,587 | ) | | | (3,117 | ) | | | (13,977 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 961 | | | 3,500 | | | | 7,041 | | | | 18,358 | |
Proceeds from reinvestment of distributions | | 37 | | | 239 | | | | 269 | | | | 1,253 | |
Payments for shares redeemed | | (2,587 | ) | | (9,364 | ) | | | (18,765 | ) | | | (49,245 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (1,589 | ) | | (5,625 | ) | | | (11,455 | ) | | | (29,634 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (2,386 | ) | | (8,912 | ) | | $ | (17,177 | ) | | $ | (47,365 | ) |
| | | | | | | | | | | | | | |
| | |
| 312 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell U.S. Small & Mid Cap Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 114 | | | 275 | | | $ | 2,112 | | | $ | 3,812 | |
Proceeds from reinvestment of distributions | | 1 | | | 2 | | | | 25 | | | | 28 | |
Payments for shares redeemed | | (66 | ) | | (174 | ) | | | (1,204 | ) | | | (2,486 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 49 | | | 103 | | | | 933 | | | | 1,354 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 109 | | | 298 | | | | 2,024 | | | | 4,126 | |
Proceeds from reinvestment of distributions | | — | | | 2 | | | | — | | | | 33 | |
Payments for shares redeemed | | (213 | ) | | (667 | ) | | | (3,957 | ) | | | (9,078 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (104 | ) | | (367 | ) | | | (1,933 | ) | | | (4,919 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 151 | | | 704 | | | | 2,811 | | | | 9,437 | |
Proceeds from reinvestment of distributions | | 6 | | | 7 | | | | 107 | | | | 87 | |
Payments for shares redeemed | | (392 | ) | | (1,345 | ) | | | (7,284 | ) | | | (19,512 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (235 | ) | | (634 | ) | | | (4,366 | ) | | | (9,988 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,210 | | | 3,852 | | | | 22,505 | | | | 52,349 | |
Proceeds from reinvestment of distributions | | 60 | | | 66 | | | | 1,086 | | | | 882 | |
Payments for shares redeemed | | (1,966 | ) | | (8,376 | ) | | | (36,512 | ) | | | (113,561 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (696 | ) | | (4,458 | ) | | | (12,921 | ) | | | (60,330 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 3,803 | | | 11,707 | | | | 70,623 | | | | 160,645 | |
Proceeds from reinvestment of distributions | | 143 | | | 140 | | | | 2,567 | | | | 1,883 | |
Payments for shares redeemed | | (4,127 | ) | | (11,067 | ) | | | (76,690 | ) | | | (147,355 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (181 | ) | | 780 | | | | (3,500 | ) | | | 15,173 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 708 | | | 4,819 | | | | 12,521 | | | | 62,329 | |
Proceeds from reinvestment of distributions | | 198 | | | 199 | | | | 3,546 | | | | 2,667 | |
Payments for shares redeemed | | (3,511 | ) | | (5,093 | ) | | | (65,666 | ) | | | (72,876 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,605 | ) | | (75 | ) | | | (49,599 | ) | | | (7,880 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (3,772 | ) | | (4,651 | ) | | $ | (71,386 | ) | | $ | (66,590 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 313 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell International Developed Markets Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 127 | | | 299 | | | $ | 3,811 | | | $ | 7,186 | |
Proceeds from reinvestment of distributions | | 22 | | | — | | | | 645 | | | | — | |
Payments for shares redeemed | | (90 | ) | | (220 | ) | | | (2,668 | ) | | | (5,138 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 59 | | | 79 | | | | 1,788 | | | | 2,048 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 113 | | | 361 | | | | 3,313 | | | | 8,866 | |
Proceeds from reinvestment of distributions | | 61 | | | — | | | | 1,774 | | | | — | |
Payments for shares redeemed | | (316 | ) | | (1,016 | ) | | | (9,285 | ) | | | (23,547 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (142 | ) | | (655 | ) | | | (4,198 | ) | | | (14,681 | ) |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 417 | | | 1,045 | | | | 12,379 | | | | 24,241 | |
Proceeds from reinvestment of distributions | | 94 | | | — | | | | 2,735 | | | | — | |
Payments for shares redeemed | | (425 | ) | | (1,538 | ) | | | (12,392 | ) | | | (39,424 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 86 | | | (493 | ) | | | 2,722 | | | | (15,183 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 3,869 | | | 10,677 | | | | 114,751 | | | | 248,334 | |
Proceeds from reinvestment of distributions | | 1,008 | | | — | | | | 29,435 | | | | — | |
Payments for shares redeemed | | (4,518 | ) | | (16,817 | ) | | | (134,701 | ) | | | (388,504 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 359 | | | (6,140 | ) | | | 9,485 | | | | (140,170 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 8,851 | | | 17,976 | | | | 260,400 | | | | 420,554 | |
Proceeds from reinvestment of distributions | | 1,548 | | | — | | | | 45,184 | | | | — | |
Payments for shares redeemed | | (4,813 | ) | | (16,028 | ) | | | (143,033 | ) | | | (373,387 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 5,586 | | | 1,948 | | | | 162,551 | | | | 47,167 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 6,534 | | | 6,300 | | | | 186,858 | | | | 140,298 | |
Proceeds from reinvestment of distributions | | 2,200 | | | — | | | | 64,227 | | | | — | |
Payments for shares redeemed | | (2,389 | ) | | (13,490 | ) | | | (72,457 | ) | | | (332,136 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 6,345 | | | (7,190 | ) | | | 178,628 | | | | (191,838 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 12,293 | | | (12,451 | ) | | $ | 350,976 | | | $ | (312,657 | ) |
| | | | | | | | | | | | | | |
| | |
| 314 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Global Equity Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 308 | | | 562 | | | $ | 2,432 | | | $ | 3,308 | |
Proceeds from reinvestment of distributions | | 8 | | | 10 | | | | 58 | | | | 57 | |
Payments for shares redeemed | | (98 | ) | | (332 | ) | | | (762 | ) | | | (1,818 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 218 | | | 240 | | | | 1,728 | | | | 1,547 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 359 | | | 386 | | | | 2,820 | | | | 2,253 | |
Proceeds from reinvestment of distributions | | 5 | | | 2 | | | | 35 | | | | 13 | |
Payments for shares redeemed | | (137 | ) | | (445 | ) | | | (1,072 | ) | | | (2,586 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 227 | | | (57 | ) | | | 1,783 | | | | (320 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,075 | | | 780 | | | | 16,442 | | | | 4,618 | |
Proceeds from reinvestment of distributions | | 21 | | | 21 | | | | 163 | | | | 119 | |
Payments for shares redeemed | | (171 | ) | | (479 | ) | | | (1,344 | ) | | | (3,064 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,925 | | | 322 | | | | 15,261 | | | | 1,673 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 41,650 | | | 25,285 | | | | 321,761 | | | | 147,332 | |
Proceeds from reinvestment of distributions | | 676 | | | 759 | | | | 5,196 | | | | 4,272 | |
Payments for shares redeemed | | (5,596 | ) | | (17,988 | ) | | | (44,012 | ) | | | (103,095 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 36,730 | | | 8,056 | | | | 282,945 | | | | 48,509 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 62,722 | | | 3,902 | | | | 474,035 | | | | 21,777 | |
Proceeds from reinvestment of distributions | | 971 | | | 1,266 | | | | 7,470 | | | | 7,129 | |
Payments for shares redeemed | | (4,913 | ) | | (12,412 | ) | | | (38,914 | ) | | | (74,470 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 58,780 | | | (7,244 | ) | | | 442,591 | | | | (45,564 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 97,880 | | | 1,317 | | | $ | 744,308 | | | $ | 5,845 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 315 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Emerging Markets Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 221 | | | 312 | | | $ | 3,926 | | | $ | 3,965 | |
Proceeds from reinvestment of distributions | | 18 | | | 31 | | | | 300 | | | | 313 | |
Payments for shares redeemed | | (63 | ) | | (353 | ) | | | (1,112 | ) | | | (4,222 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 176 | | | (10 | ) | | | 3,114 | | | | 56 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 302 | | | 408 | | | | 5,061 | | | | 4,952 | |
Proceeds from reinvestment of distributions | | 43 | | | 116 | | | | 695 | | | | 1,103 | |
Payments for shares redeemed | | (262 | ) | | (795 | ) | | | (4,349 | ) | | | (8,489 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 83 | | | (271 | ) | | | 1,407 | | | | (2,434 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 734 | | | 884 | | | | 12,978 | | | | 11,008 | |
Proceeds from reinvestment of distributions | | 48 | | | 79 | | | | 818 | | | | 789 | |
Payments for shares redeemed | | (641 | ) | | (952 | ) | | | (11,305 | ) | | | (12,087 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 141 | | | 11 | | | | 2,491 | | | | (290 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 10,920 | | | 22,421 | | | | 196,491 | | | | 258,101 | |
Proceeds from reinvestment of distributions | | 1,220 | | | 2,226 | | | | 20,826 | | | | 22,211 | |
Payments for shares redeemed | | (10,931 | ) | | (25,892 | ) | | | (193,605 | ) | | | (306,717 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,209 | | | (1,245 | ) | | | 23,712 | | | | (26,405 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,199 | | | 3,094 | | | | 20,576 | | | | 31,048 | |
Proceeds from reinvestment of distributions | | 605 | | | 1,490 | | | | 10,330 | | | | 14,874 | |
Payments for shares redeemed | | (1,881 | ) | | (11,875 | ) | | | (33,866 | ) | | | (142,024 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (77 | ) | | (7,291 | ) | | | (2,960 | ) | | | (96,102 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 1,532 | | | (8,806 | ) | | $ | 27,764 | | | $ | (125,175 | ) |
| | | | | | | | | | | | | | |
| | |
| 316 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Tax-Managed U.S Large Cap Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 27 | | | 293 | | | $ | 432 | | | $ | 4,007 | |
Proceeds from reinvestment of distributions | | — | | | 1 | | | | — | | | | 9 | |
Payments for shares redeemed | | (71 | ) | | (465 | ) | | | (1,166 | ) | | | (5,730 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (44 | ) | | (171 | ) | | | (734 | ) | | | (1,714 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 126 | | | 287 | | | | 2,166 | | | | 3,674 | |
Proceeds from reinvestment of distributions | | 5 | | | 11 | | | | 76 | | | | 138 | |
Payments for shares redeemed | | (89 | ) | | (272 | ) | | | (1,540 | ) | | | (3,650 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 42 | | | 26 | | | | 702 | | | | 162 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,228 | | | 10,280 | | | | 37,902 | | | | 132,410 | |
Proceeds from reinvestment of distributions | | 121 | | | 328 | | | | 2,017 | | | | 4,086 | |
Payments for shares redeemed | | (2,725 | ) | | (14,095 | ) | | | (46,067 | ) | | | (182,260 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (376 | ) | | (3,487 | ) | | | (6,148 | ) | | | (45,764 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (378 | ) | | (3,632 | ) | | $ | (6,180 | ) | | $ | (47,316 | ) |
| | | | | | | | | | | | | | |
| | |
| | | Shares | | | Dollars | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 33 | | | 261 | | | $ | 347 | | | $ | 2,197 | |
Proceeds from reinvestment of distributions | | — | | | — | | | | — | | | | — | |
Payments for shares redeemed | | (74 | ) | | (525 | ) | | | (809 | ) | | | (4,195 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (41 | ) | | (264 | ) | | | (462 | ) | | | (1,998 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 35 | | | 112 | | | | 420 | | | | 910 | |
Proceeds from reinvestment of distributions | | — | | | 2 | | | | — | | | | 14 | |
Payments for shares redeemed | | (27 | ) | | (119 | ) | | | (329 | ) | | | (1,063 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 8 | | | (5 | ) | | | 91 | | | | (139 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,065 | | | 4,915 | | | | 12,647 | | | | 42,754 | |
Proceeds from reinvestment of distributions | | 9 | | | 119 | | | | 109 | | | | 1,023 | |
Payments for shares redeemed | | (1,676 | ) | | (8,668 | ) | | | (19,987 | ) | | | (76,012 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (602 | ) | | (3,634 | ) | | | (7,231 | ) | | | (32,235 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (635 | ) | | (3,903 | ) | | $ | (7,602 | ) | | $ | (34,372 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 317 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Strategic Bond Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,871 | | | 2,643 | | | $ | 19,657 | | | $ | 25,022 | |
Proceeds from reinvestment of distributions | | 88 | | | 151 | | | | 915 | | | | 1,413 | |
Payments for shares redeemed | | (1,411 | ) | | (1,349 | ) | | | (14,869 | ) | | | (12,673 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 548 | | | 1,445 | | | | 5,703 | | | | 13,762 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,305 | | | 3,012 | | | | 13,723 | | | | 28,372 | |
Proceeds from reinvestment of distributions | | 172 | | | 452 | | | | 1,794 | | | | 4,218 | |
Payments for shares redeemed | | (1,691 | ) | | (3,534 | ) | | | (17,833 | ) | | | (33,048 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (214 | ) | | (70 | ) | | | (2,316 | ) | | | (458 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,728 | | | 4,315 | | | | 18,052 | | | | 41,276 | |
Proceeds from reinvestment of distributions | | 312 | | | 765 | | | | 3,235 | | | | 7,092 | |
Payments for shares redeemed | | (2,399 | ) | | (5,654 | ) | | | (25,252 | ) | | | (51,980 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (359 | ) | | (574 | ) | | | (3,965 | ) | | | (3,612 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 20,640 | | | 40,933 | | | | 215,095 | | | | 382,824 | |
Proceeds from reinvestment of distributions | | 2,817 | | | 7,204 | | | | 29,124 | | | | 66,659 | |
Payments for shares redeemed | | (22,092 | ) | | (66,313 | ) | | | (230,109 | ) | | | (609,520 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,365 | | | (18,176 | ) | | | 14,110 | | | | (160,037 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 44,135 | | | 79,428 | | | | 465,199 | | | | 753,035 | |
Proceeds from reinvestment of distributions | | 4,717 | | | 10,480 | | | | 49,307 | | | | 98,104 | |
Payments for shares redeemed | | (36,198 | ) | | (87,880 | ) | | | (382,867 | ) | | | (818,737 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 12,654 | | | 2,028 | | | | 131,639 | | | | 32,402 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 15,775 | | | 56,626 | | | | 163,975 | | | | 527,830 | |
Proceeds from reinvestment of distributions | | 8,031 | | | 19,037 | | | | 83,089 | | | | 176,631 | |
Payments for shares redeemed | | (42,285 | ) | | (78,450 | ) | | | (444,555 | ) | | | (708,761 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (18,479 | ) | | (2,787 | ) | | | (197,491 | ) | | | (4,300 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (4,485 | ) | | (18,134 | ) | | $ | (52,320 | ) | | $ | (122,243 | ) |
| | | | | | | | | | | | | | |
| | |
| 318 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Investment Grade Bond Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 310 | | | 528 | | | $ | 6,624 | | | $ | 10,379 | |
Proceeds from reinvestment of distributions | | 28 | | | 51 | | | | 603 | | | | 1,000 | |
Payments for shares redeemed | | (239 | ) | | (542 | ) | | | (5,131 | ) | | | (10,697 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 99 | | | 37 | | | | 2,096 | | | | 682 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,042 | | | 549 | | | | 22,458 | | | | 11,051 | |
Proceeds from reinvestment of distributions | | 43 | | | 80 | | | | 913 | | | | 1,574 | |
Payments for shares redeemed | | (529 | ) | | (1,176 | ) | | | (11,359 | ) | | | (23,138 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 556 | | | (547 | ) | | | 12,012 | | | | (10,513 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,962 | | | 5,651 | | | | 63,588 | | | | 111,395 | |
Proceeds from reinvestment of distributions | | 404 | | | 751 | | | | 8,585 | | | | 14,805 | |
Payments for shares redeemed | | (3,119 | ) | | (9,809 | ) | | | (67,008 | ) | | | (191,721 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 247 | | | (3,407 | ) | | | 5,165 | | | | (65,521 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 11,654 | | | 2,110 | | | | 251,468 | | | | 41,599 | |
Proceeds from reinvestment of distributions | | 163 | | | 236 | | | | 3,483 | | | | 4,656 | |
Payments for shares redeemed | | (1,275 | ) | | (3,619 | ) | | | (27,413 | ) | | | (70,888 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 10,542 | | | (1,273 | ) | | | 227,538 | | | | (24,633 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 19,888 | | | 3,504 | | | | 429,252 | | | | 70,648 | |
Proceeds from reinvestment of distributions | | 438 | | | 881 | | | | 9,333 | | | | 17,324 | |
Payments for shares redeemed | | (1,636 | ) | | (13,069 | ) | | | (35,114 | ) | | | (260,113 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 18,690 | | | (8,684 | ) | | | 403,471 | | | | (172,141 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 30,134 | | | (13,874 | ) | | $ | 650,282 | | | $ | (272,126 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 319 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Short Duration Bond Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 567 | | | 721 | | | $ | 10,757 | | | $ | 12,780 | |
Proceeds from reinvestment of distributions | | 12 | | | 15 | | | | 225 | | | | 267 | |
Payments for shares redeemed | | (184 | ) | | (268 | ) | | | (3,492 | ) | | | (4,824 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 395 | | | 468 | | | | 7,490 | | | | 8,223 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,254 | | | 2,223 | | | | 42,629 | | | | 40,484 | |
Proceeds from reinvestment of distributions | | 32 | | | 36 | | | | 598 | | | | 643 | |
Payments for shares redeemed | | (712 | ) | | (884 | ) | | | (13,467 | ) | | | (15,785 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,574 | | | 1,375 | | | | 29,760 | | | | 25,342 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 345 | | | 616 | | | | 6,554 | | | | 11,082 | |
Proceeds from reinvestment of distributions | | 12 | | | 21 | | | | 224 | | | | 380 | |
Payments for shares redeemed | | (127 | ) | | (511 | ) | | | (2,413 | ) | | | (9,037 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 230 | | | 126 | | | | 4,365 | | | | 2,425 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 8,577 | | | 13,079 | | | | 162,660 | | | | 234,341 | |
Proceeds from reinvestment of distributions | | 327 | | | 546 | | | | 6,186 | | | | 9,739 | |
Payments for shares redeemed | | (4,888 | ) | | (8,384 | ) | | | (92,695 | ) | | | (148,886 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 4,016 | | | 5,241 | | | | 76,151 | | | | 95,194 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,560 | | | 2,494 | | | | 48,514 | | | | 45,806 | |
Proceeds from reinvestment of distributions | | 161 | | | 248 | | | | 3,041 | | | | 4,425 | |
Payments for shares redeemed | | (1,283 | ) | | (1,006 | ) | | | (24,340 | ) | | | (17,790 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,438 | | | 1,736 | | | | 27,215 | | | | 32,441 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 7,653 | | | 8,946 | | | $ | 144,981 | | | $ | 163,625 | |
| | | | | | | | | | | | | | |
| | |
| 320 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Tax Exempt Bond Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | �� | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 442 | | | 574 | | | $ | 9,754 | | | $ | 12,277 | |
Proceeds from reinvestment of distributions | | 12 | | | 19 | | | | 270 | | | | 405 | |
Payments for shares redeemed | | (318 | ) | | (284 | ) | | | (7,005 | ) | | | (6,060 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 136 | | | 309 | | | | 3,019 | | | | 6,622 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 327 | | | 459 | | | | 7,238 | | | | 9,871 | |
Proceeds from reinvestment of distributions | | 17 | | | 27 | | | | 367 | | | | 580 | |
Payments for shares redeemed | | (102 | ) | | (313 | ) | | | (2,251 | ) | | | (6,667 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 242 | | | 173 | | | | 5,354 | | | | 3,784 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 4,436 | | | 9,438 | | | | 97,868 | | | | 201,304 | |
Proceeds from reinvestment of distributions | | 298 | | | 538 | | | | 6,567 | | | | 11,444 | |
Payments for shares redeemed | | (2,497 | ) | | (9,021 | ) | | | (55,089 | ) | | | (190,529 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 2,237 | | | 955 | | | | 49,346 | | | | 22,219 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 2,615 | | | 1,437 | | | $ | 57,719 | | | $ | 32,625 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 321 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Russell Real Estate Securities Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 116 | | | | 193 | | | $ | 3,574 | | | $ | 4,273 | |
Proceeds from reinvestment of distributions | | | 7 | | | | 20 | | | | 207 | | | | 405 | |
Payments for shares redeemed | | | (67 | ) | | | (189 | ) | | | (2,027 | ) | | | (3,941 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 56 | | | | 24 | | | | 1,754 | | | | 737 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 111 | | | | 254 | | | | 3,305 | | | | 5,459 | |
Proceeds from reinvestment of distributions | | | 13 | | | | 48 | | | | 380 | | | | 931 | |
Payments for shares redeemed | | | (210 | ) | | | (504 | ) | | | (6,179 | ) | | | (10,555 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (86 | ) | | | (202 | ) | | | (2,494 | ) | | | (4,165 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 161 | | | | 688 | | | | 4,790 | | | | 14,106 | |
Proceeds from reinvestment of distributions | | | 15 | | | | 49 | | | | 440 | | | | 982 | |
Payments for shares redeemed | | | (245 | ) | | | (583 | ) | | | (7,445 | ) | | | (13,434 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (69 | ) | | | 154 | | | | (2,215 | ) | | | 1,654 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 4,912 | | | | 16,649 | | | | 148,661 | | | | 356,315 | |
Proceeds from reinvestment of distributions | | | 443 | | | | 1,244 | | | | 13,493 | | | | 25,408 | |
Payments for shares redeemed | | | (4,957 | ) | | | (12,531 | ) | | | (151,138 | ) | | | (269,655 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 398 | | | | 5,362 | | | | 11,016 | | | | 112,068 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 388 | | | | 10,186 | | | | 11,357 | | | | 190,011 | |
Proceeds from reinvestment of distributions | | | 261 | | | | 923 | | | | 7,939 | | | | 18,679 | |
Payments for shares redeemed | | | (3,036 | ) | | | (7,783 | ) | | | (92,519 | ) | | | (180,125 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,387 | ) | | | 3,326 | | | | (73,223 | ) | | | 28,565 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (2,088 | ) | | | 8,664 | | | $ | (65,162 | ) | | $ | 138,859 | |
| | | | | | | | | | | | | | | | |
| | | |
| | | On a Constant Dollar Basis | | | | | | | |
| Russell Money Market Fund | | 2010 | | | 2009 | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | $ | 5,389 | | | $ | 119,564 | | | | | | | | | |
Proceeds from reinvestment of distributions | | | 8 | | | | 2,165 | | | | | | | | | |
Payments for shares redeemed | | | (65,268 | ) | | | (370,931 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (59,871 | ) | | | (249,202 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 198,118 | | | | 22,526,028 | | | | | | | | | |
Proceeds from reinvestment of distributions | | | 39 | | | | 11,676 | | | | | | | | | |
Payments for shares redeemed | | | (2,253,294 | ) | | | (25,002,035 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,055,137 | ) | | | (2,464,331 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | $ | (2,115,008 | ) | | $ | (2,713,533 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | |
| 322 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 7. | | Interfund Lending Program |
The Investment Company Funds have been granted permission from the Securities and Exchange Commission to participate in a joint lending and borrowing facility (the “Credit Facility”). Portfolios of the Funds may borrow money from each other for temporary purposes. All such borrowing and lending will be subject to a participating Fund’s fundamental investment limitations. Typically, Funds will borrow from the Russell Money Market Fund. The Russell Money Market Fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements or short-term reserves and the portfolio manager determines it is in the best interest of the Russell Money Market Fund. The Investment Company Funds will borrow through the program only when the costs are equal to or lower than the cost of bank loans. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one business day’s notice. A participating fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to the Russell Money Market Fund could result in a lost investment opportunity or additional borrowing costs. For the period ended April 30, 2010, the Funds presented did not borrow through the interfund lending program.
As of April 30, 2010, the following table includes shareholders of record with greater than 10% of the total outstanding shares of each respective Fund:
| | | | |
| | | # of Shareholders | | % |
| | | | |
Russell U.S. Core Equity Fund | | 3 | | 42.1 |
Russell U.S. Quantitative Equity Fund | | 3 | | 49.4 |
Russell U.S. Growth Fund | | 3 | | 49.4 |
Russell U.S. Value Fund | | 2 | | 46.3 |
Russell U.S. Small & Mid Cap Fund | | 4 | | 52.2 |
Russell International Developed Markets Fund | | 4 | | 54.7 |
Russell Global Equity Fund | | 4 | | 67.8 |
Russell Emerging Markets Fund | | 2 | | 32.4 |
Russell Tax-Managed U.S. Large Cap Fund | | 1 | | 36.8 |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | 1 | | 32.2 |
Russell Strategic Bond Fund | | 2 | | 43.9 |
Russell Investment Grade Bond Fund | | 2 | | 26.6 |
Russell Short Duration Bond Fund | | 3 | | 52.5 |
Russell Tax Exempt Bond Fund | | 2 | | 43.9 |
Russell Real Estate Securities Fund | | 3 | | 40.1 |
Russell Money Market Fund | | 1 | | 44.5 |
Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not registered under the Securities Act of 1933 (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% (10% for the Money Market Fund) 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.
The following table lists restricted securities held by a Fund that are illiquid. The following table does not include (1) securities deemed liquid by RIMCo or a money manager pursuant to Board approved policies and procedures or (2) illiquid securities that are not restricted securities as designated on the Fund’s Schedule of Investments.
| | | | | | | | | | |
Fund - % of Net Assets Securities | | Acquisition
Date | | Principal Amount ($) or Shares | | Cost per Unit $ | | Cost (000) $ | | Market Value (000) $ |
| | | | | | | | | | |
Russell U.S. Small & Mid Cap Fund - 0.0% | | | | | | | | | | |
Perceptron, Inc. | | 03/10/08 | | 76,730 | | 8.86 | | 680 | | 361 |
| | | | | | | | | | |
| | |
| Notes to Financial Statements | | 323 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Fund - % of Net Assets Securities | | Acquisition
Date | | Principal Amount ($) or Shares | | Cost per Unit $ | | Cost (000) $ | | Market Value (000) $ |
| | | | | | | | | | |
Russell International Developed Markets Fund - 0.3% | | | | | | | | | | |
ABC Learning Centres, Ltd. | | 07/16/08 | | 43,374 | | 0.77 | | 33 | | — |
Astra International Tbk PT | | 01/16/02 | | 41,000 | | 5.14 | | 211 | | 212 |
HON HAI Precision Industry Co., Ltd. | | 11/12/01 | | 2,923,320 | | 3.67 | | 10,716 | | 13,655 |
| | | | | | | | | | |
| | | | | | | | | | 13,867 |
| | | | | | | | | | |
Russell Global Equity Fund - 0.1% | | | | | | | | | | |
HON HAI Precision Industry Co., Ltd. | | 11/12/01 | | 491,000 | | 4.86 | | 2,386 | | 2,293 |
| | | | | | | | | | |
| | | | | | | | | | |
Russell Emerging Markets Fund - 2.1% | | | | | | | | | | |
Astra International Tbk PT | | 06/27/01 | | 233,000 | | 16.69 | | 3,889 | | 7,717 |
Corp. Moctezuma SAB de CV | | 03/01/06 | | 302,563 | | 1.81 | | 547 | | 753 |
Delta Corp., Ltd. | | 09/23/09 | | 1,117,659 | | 0.38 | | 429 | | 503 |
Far Eastern New Century Corp. | | 10/09/09 | | 961,158 | | 0.54 | | 521 | | 1,040 |
HON HAI Precision Industry Co., Ltd. | | 11/12/01 | | 642,858 | | 13.11 | | 8,427 | | 11,067 |
Kalina | | 08/02/06 | | 10,800 | | 41.04 | | 443 | | 242 |
Magnit OJSC | | 05/16/06 | | 35,800 | | 22.03 | | 789 | | 3,320 |
MDM Bank OAO | | 09/04/07 | | 1,093,505 | | 1.93 | | 2,113 | | 831 |
MOL Hungarian Oil and Gas NyRt | | 12/19/07 | | 12,898 | | 4.05 | | 52 | | 641 |
Ramayana Lestari Sentosa Tbk PT | | 06/28/96 | | 5,238,492 | | 0.08 | | 423 | | 488 |
Raspadskaya | | 09/05/08 | | 388,207 | | 3.83 | | 1,488 | | 2,774 |
Seventh Continent | | 06/01/06 | | 38,051 | | 27.91 | | 1,062 | | 358 |
| | | | | | | | | | |
| | | | | | | | | | 29,734 |
| | | | | | | | | | |
Russell Strategic Bond Fund - 2.3% | | | | | | | | | | |
Adam Aircraft Term Loan | | 05/22/07 | | 760,000 | | 96.84 | | 736 | | 8 |
ARES CLO Funds | | 01/15/09 | | 7,741,000 | | 95.16 | | 7,366 | | 7,501 |
ARES CLO Funds | | 01/15/09 | | 13,524,000 | | 73.94 | | 9,999 | | 12,779 |
Arlington Street CDO, Ltd. | | 06/04/03 | | 1,470,000 | | 100.68 | | 1,480 | | 1,377 |
Armstrong Loan Funding, Ltd | | 05/21/09 | | 3,311,000 | | 87.04 | | 2,882 | | 3,194 |
Banco Santander Brasil SA | | 03/31/10 | | 6,075,000 | | 98.93 | | 6,010 | | 6,015 |
BBVA Bancomer SA | | 04/15/10 | | 4,225,000 | | 100.00 | | 4,225 | | 4,287 |
Black Diamond CLO, Ltd. | | 09/11/08 | | 23,250,000 | | 76.72 | | 17,837 | | 21,427 |
BNP Paribas Capital Trust | | 06/01/06 | | 3,450,000 | | 112.09 | | 3,867 | | 3,381 |
BRFkredit AS | | 04/08/10 | | 16,500,000 | | 99.89 | | 16,482 | | 16,594 |
Chatham Light CLO, Ltd. | | 11/25/09 | | 3,466,000 | | 90.33 | | 3,131 | | 3,201 |
Cie de Financement Foncier | | 04/15/10 | | 7,500,000 | | 99.85 | | 7,489 | | 7,551 |
CIT Mortgage Loan Trust | | 10/05/07 | | 2,593,000 | | 100.00 | | 2,593 | | 2,465 |
CIT Mortgage Loan Trust | | 10/05/07 | | 2,100,000 | | 100.00 | | 2,100 | | 1,004 |
CIT Mortgage Loan Trust | | 10/05/07 | | 3,900,000 | | 100.00 | | 3,900 | | 1,747 |
College Loan Corp. Trust | | 08/25/09 | | 2,000,000 | | 80.85 | | 1,617 | | 1,700 |
Credit Suisse Mortgage Capital Certificates | | 09/03/08 | | 8,047,000 | | 72.81 | | 5,859 | | 5,606 |
Deutsche Bank AG | | 04/06/10 | | 46,600,000,000 | | 0.01 | | 5,713 | | 5,724 |
Dexia Credit Local | | 04/21/10 | | 5,300,000 | | 100.00 | | 5,300 | | 5,293 |
DG Funding Trust | | 11/04/03 | | 479 | | 10,584.55 | | 5,070 | | 3,895 |
DTEK Finance BV | | 04/21/10 | | 3,505,000 | | 99.03 | | 3,471 | | 3,505 |
Educational Services of America, Inc. | | 02/23/10 | | 4,500,000 | | 100.00 | | 4,500 | | 4,490 |
Fannie Mae REMICS | | 05/29/07 | | 52,000 | | 98.08 | | 51 | | 51 |
Fannie Mae REMICS | | 05/29/07 | | 41,000 | | 95.12 | | 39 | | 37 |
Fannie Mae REMICS | | 06/04/07 | | 67,000 | | 104.48 | | 70 | | 67 |
Fannie Mae REMICS | | 06/11/07 | | 47,000 | | 108.51 | | 51 | | 46 |
Fannie Mae REMICS | | 06/21/07 | | 173,000 | | 109.83 | | 190 | | 168 |
FIH Erhvervsbank A/S | | 04/05/10 | | 7,600,000 | | 99.45 | | 7,558 | | 7,624 |
Freddie Mac REMICS | | 04/13/07 | | 5,000 | | 80.00 | | 4 | | 5 |
Freddie Mac REMICS | | 04/23/07 | | 6,000 | | 100.00 | | 6 | | 6 |
| | |
| 324 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Fund - % of Net Assets Securities | | Acquisition
Date | | Principal Amount ($) or Shares | | Cost per Unit $ | | Cost (000) $ | | Market Value (000) $ |
| | | | | | | | | | |
Freddie Mac REMICS | | 05/29/07 | | 169,000 | | 94.67 | | 160 | | 165 |
Freddie Mac REMICS | | 06/21/07 | | 93,000 | | 118.28 | | 110 | | 92 |
Freddie Mac REMICS | | 06/22/07 | | 37,000 | | 113.51 | | 42 | | 37 |
Freddie Mac REMICS | | 06/26/07 | | 65,000 | | 109.23 | | 71 | | 63 |
Freddie Mac REMICS | | 07/17/07 | | 99,000 | | 109.09 | | 108 | | 99 |
Freddie Mac Strips | | 12/02/09 | | 20,928,000 | | 10.62 | | 2,223 | | 2,203 |
Freescale Semiconductor, Inc. | | 04/07/10 | | 3,250,000 | | 100.00 | | 3,250 | | 3,380 |
KazMunaiGaz Finance Sub BV | | 04/28/10 | | 2,070,000 | | 98.26 | | 2,034 | | 2,050 |
MHP SA | | 04/22/10 | | 2,030,000 | | 101.43 | | 2,059 | | 1,989 |
NBC Universal, Inc. | | 04/27/10 | | 9,890,000 | | 99.85 | | 9,875 | | 10,005 |
NBC Universal, Inc. | | 04/27/10 | | 3,285,000 | | 99.97 | | 3,284 | | 3,392 |
NBC Universal, Inc. | | 04/27/10 | | 4,805,000 | | 99.77 | | 4,794 | | 4,851 |
OMX Timber Finance Investments I LLC | | 03/16/10 | | 7,200,000 | | 98.39 | | 7,084 | | 7,083 |
RBSCF Trust | | 04/09/10 | | 5,725,000 | | 100.00 | | 5,725 | | 5,780 |
SBA Tower Trust | | 04/08/10 | | 3,815,000 | | 100.00 | | 3,815 | | 3,915 |
Symetra Financial Corp. | | 06/02/06 | | 1,200,000 | | 98.67 | | 1,184 | | 1,219 |
Washington Mutual Mortgage Pass Through Certificates | | 04/01/05 | | 1,713,000 | | 100.00 | | 1,713 | | 91 |
Washington Mutual Mortgage Pass Through Certificates | | 02/28/07 | | 542,563 | | 100.07 | | 542 | | 398 |
| | | | | | | | | | |
| | | | | | | | | | 177,560 |
| | | | | | | | | | |
Russell Investment Grade Bond Fund - 1.1% | | | | | | | | | | |
Air 2 US | | 01/10/07 | | 517,326 | | 104.35 | | 540 | | 468 |
Banco Santander Chile | | 03/31/10 | | 900,000 | | 100.00 | | 900 | | 899 |
Citigroup Mortgage Loan Trust, Inc. | | 04/09/10 | | 863,771 | | 98.75 | | 853 | | 854 |
Depfa ACS Bank | | 03/08/07 | | 400,000 | | 98.47 | | 394 | | 303 |
Dexia Credit Local | | 04/22/10 | | 1,700,000 | | 100.00 | | 1,700 | | 1,698 |
DG Funding Trust | | 11/05/03 | | 392 | | 10,587.26 | | 4,150 | | 3,187 |
Glitnir Banki HF | | 06/12/06 | | 700,000 | | 99.92 | | 699 | | 1 |
Glitnir Banki HF | | 07/21/06 | | 270,000 | | 100.00 | | 270 | | 84 |
Glitnir Banki HF | | 09/20/07 | | 390,000 | | 99.82 | | 389 | | 122 |
Itau Unibanco Holding SA | | 04/08/10 | | 1,800,000 | | 99.55 | | 1,792 | | 1,811 |
Kaupthing Bank Hf | | 05/12/06 | | 1,480,000 | | 99.57 | | 1,474 | | - |
Kaupthing Bank Hf | | 10/03/06 | | 100,000 | | 99.72 | | 100 | | 28 |
Kaupthing Bank Hf | | 02/25/08 | | 1,210,000 | | 84.53 | | 1,023 | | 339 |
NBC Universal, Inc. | | 04/27/10 | | 1,830,000 | | 99.80 | | 1,826 | | 1,847 |
Ohio National Financial Services, Inc. | | 04/20/10 | | 5,000,000 | | 99.47 | | 4,973 | | 5,132 |
Pricoa Global Funding I | | 04/14/10 | | 1,500,000 | | 100.07 | | 1,501 | | 1,501 |
Washington Mutual Mortgage Pass Through Certificates | | 04/01/05 | | 445,286 | | 100.00 | | 445 | | 24 |
Washington Mutual Mortgage Pass Through Certificates | | 02/28/07 | | 325,538 | | 100.00 | | 326 | | 239 |
| | | | | | | | | | |
| | | | | | | | | | 18,537 |
| | | | | | | | | | |
Russell Short Duration Bond Fund - 1.2% | | | | | | | | | | |
Banco Santander Chile | | 03/31/10 | | 700,000 | | 100.00 | | 700 | | 700 |
Dexia Credit Local | | 04/21/10 | | 1,400,000 | | 100.00 | | 1,400 | | 1,398 |
DG Funding Trust | | 11/04/03 | | 219 | | 10,537.12 | | 2,308 | | 1,781 |
Freescale Semiconductor, Inc. | | 04/07/10 | | 600,000 | | 100.00 | | 600 | | 624 |
ING Bank NV | | 03/25/10 | | 300,000 | | 99.82 | | 299 | | 300 |
NBC Universal, Inc. | | 04/27/10 | | 1,950,000 | | 99.85 | | 1,947 | | 1,973 |
NBC Universal, Inc. | | 04/27/10 | | 845,000 | | 99.78 | | 843 | | 853 |
RBSCF Trust | | 04/09/10 | | 810,000 | | 100.00 | | 810 | | 818 |
SBA Tower Trust | | 04/08/10 | | 675,000 | | 100.00 | | 675 | | 693 |
| | | | | | | | | | |
| | | | | | | | | | 9,140 |
| | | | | | | | | | |
Russell Money Market Fund - 1.1% | | | | | | | | | | |
AID to INH Portugal Guaranteed Note | | 05/06/94 | | 5,000,000 | | 100.65 | | 5,032 | | 5,032 |
| | | | | | | | | | |
| | |
| Notes to Financial Statements | | 325 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Illiquid securities and restricted securities may be priced by the Funds using fair value procedures approved by the Board.
On May 3, 2010, the Board declared the following dividends payable from net investment income. Dividends were paid on May 5, 2010, to shareholders of record May 4, 2010.
| | | | | | | | | |
| | | Net Investment
Income | | Short-Term
Capital Gains | | Long-Term
Capital Gains |
| | | | | | | | | |
Russell Investment Grade Bond Fund - Class I | | $ | 0.0436 | | $ | — | | $ | — |
Russell Investment Grade Bond Fund - Class E | | | 0.0396 | | | — | | | — |
Russell Investment Grade Bond Fund - Class Y | | | 0.0453 | | | — | | | — |
Russell Investment Grade Bond Fund - Class C | | | 0.0241 | | | — | | | — |
Russell Investment Grade Bond Fund - Class S | | | 0.0423 | | | — | | | — |
Russell Short Duration Bond Fund - Class S | | | 0.0476 | | | — | | | — |
Russell Short Duration Bond Fund - Class E | | | 0.0438 | | | — | | | — |
Russell Short Duration Bond Fund - Class C | | | 0.0326 | | | — | | | — |
Russell Short Duration Bond Fund - Class A | | | 0.0438 | | | — | | | — |
Russell Short Duration Bond Fund - Class Y | | | 0.0491 | | | — | | | — |
Russell Strategic Bond Fund - Class I | | | 0.0363 | | | — | | | — |
Russell Strategic Bond Fund - Class E | | | 0.0343 | | | — | | | — |
Russell Strategic Bond Fund - Class Y | | | 0.0371 | | | — | | | — |
Russell Strategic Bond Fund - Class A | | | 0.0337 | | | — | | | — |
Russell Strategic Bond Fund - Class C | | | 0.0269 | | | — | | | — |
Russell Strategic Bond Fund - Class S | | | 0.0357 | | | — | | | — |
Russell Tax Exempt Bond - Class S | | | 0.0574 | | | — | | | — |
Russell Tax Exempt Bond - Class E | | | 0.0529 | | | — | | | — |
Russell Tax Exempt Bond - Class C | | | 0.0388 | | | — | | | — |
On June 1, 2010, the Board declared the following dividends payable from net investment income. Dividends were paid on June 3, 2010, to shareholders of record June 2, 2010.
| | | | | | | | | |
| | | Net Investment
Income | | Short-Term
Capital Gains | | Long-Term
Capital Gains |
| | | | | | | | | |
Russell Investment Grade Bond Fund - Class I | | $ | 0.0385 | | $ | — | | $ | — |
Russell Investment Grade Bond Fund - Class E | | | 0.0342 | | | — | | | — |
Russell Investment Grade Bond Fund - Class Y | | | 0.0401 | | | — | | | — |
Russell Investment Grade Bond Fund - Class C | | | 0.0206 | | | — | | | — |
Russell Investment Grade Bond Fund - Class S | | | 0.0373 | | | — | | | — |
Russell Short Duration Bond Fund - Class S | | | 0.0435 | | | — | | | — |
Russell Short Duration Bond Fund - Class E | | | 0.0399 | | | — | | | — |
Russell Short Duration Bond Fund - Class C | | | 0.0294 | | | — | | | — |
Russell Short Duration Bond Fund - Class A | | | 0.0397 | | | — | | | — |
Russell Short Duration Bond Fund - Class Y | | | 0.0449 | | | — | | | — |
Russell Strategic Bond Fund - Class I | | | 0.0342 | | | — | | | — |
Russell Strategic Bond Fund - Class E | | | 0.0323 | | | — | | | — |
Russell Strategic Bond Fund - Class Y | | | 0.0350 | | | — | | | — |
Russell Strategic Bond Fund - Class A | | | 0.0318 | | | — | | | — |
Russell Strategic Bond Fund - Class C | | | 0.0255 | | | — | | | — |
Russell Strategic Bond Fund - Class S | | | 0.0337 | | | — | | | — |
Russell Tax Exempt Bond - Class S | | | 0.0562 | | | — | | | — |
Russell Tax Exempt Bond - Class E | | | 0.0521 | | | — | | | — |
Russell Tax Exempt Bond - Class C | | | 0.0389 | | | — | | | — |
Management has evaluated events or transactions that may have occurred since April 30, 2010 that would merit recognition or disclosure in the financial statements. This evaluation was completed through June 23, 2010, the date the financial statements were available to be issued. During this review nothing was discovered which would required further disclosure within the financial statements.
| | |
| 326 | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts (Unaudited)
Approval of Investment Advisory Agreement
The Board of Trustees, including all of the Independent Trustees, last considered and approved the continuation of the advisory agreement with RIMCo (the “RIMCo Agreement”) and the portfolio management contract with each Money Manager of the Funds (collectively, the “portfolio management contracts”) at a meeting held in person on April 20, 2010 (the “Agreement Evaluation Meeting”). During the course of a year, the Trustees receive a wide variety of materials regarding the investment performance of the Funds, sales and redemptions of the Funds’ shares, management of the Funds by RIMCo and compliance with applicable regulatory requirements. In preparation for the annual review, the Independent Trustees, with the advice and assistance of their independent counsel, also requested and the Board considered (1) information, analyses and reports prepared by RIMCo relating to the services provided by RIMCo (and its affiliates) to the Funds; and (2) information (the “Third-Party Information”) received from an independent, nationally recognized provider of investment company information comparing the performance of each of the Funds and their respective operating expenses over various periods of time with other peer funds not managed by RIMCo, believed by the provider to be generally comparable in investment objectives to the Funds. In the case of each Fund, its other peer funds are collectively hereinafter referred to as the Fund’s “Comparable Funds,” and, with the Fund, such Comparable Funds are collectively hereinafter referred to as the Fund’s “Performance Universe” in the case of performance comparisons and the Fund’s “Expense Universe” in the case of operating expense comparisons. In the case of certain Funds, the Third-Party Information reflected changes in the Comparable Funds requested by RIMCo, which changes were noted in the Third-Party Information. The foregoing information requested by the Trustees or provided by RIMCo is collectively called the “Agreement Evaluation Information.” The Trustees’ evaluations also reflected the knowledge and familiarity gained as Board members of the Funds and other funds in the same complex with respect to services provided by RIMCo, RIMCo’s affiliates and each Money Manager. The Trustees received a memorandum from counsel to the Funds discussing the legal standards for their consideration of the continuations of the RIMCo Agreement and the portfolio management contracts and the Independent Trustees separately received a memorandum regarding their responsibilities from their independent counsel.
On April 13, 2010, the Independent Trustees in preparation for the Agreement Evaluation Meeting met by conference telephone call to review Agreement Evaluation Information received to that date in a private session with their independent counsel at which no representatives of RIMCo or the Funds’ management were present and, on the basis of that review, requested additional Agreement Evaluation Information. At the Agreement Evaluation Meeting, the Board, including the Independent Trustees, reviewed the proposed continuance of the RIMCo Agreement and the portfolio management contracts with management, counsel to the Funds and independent counsel to the Independent Trustees. Presentations made by RIMCo to the Board as part of this review encompassed the Funds and all other RIMCo-managed funds for which the Board has supervisory responsibility. Following this review, but prior to voting, the Independent Trustees again met in executive session with their independent counsel to consider additional Agreement Evaluation Information received from RIMCo and management at the Agreement Evaluation Meeting. The discussion below reflects all of these reviews.
In evaluating the portfolio management contracts, the Board considered that the Funds, in employing a manager-of-managers method of investment, operate in a manner that is distinctly different from most other investment companies. In the case of most other investment companies, an advisory fee is paid by the investment company to its adviser which, in turn, employs and compensates individual portfolio managers to make specific securities selections consistent with the adviser’s style and investment philosophy. RIMCo has engaged multiple unaffiliated Money Managers for all Funds except the Russell Money Market Fund (the “Money Market Fund”), which is currently managed by RIMCo.
The Board considered that RIMCo (rather than any Money Manager) is responsible under the RIMCo Agreement for determining, implementing and maintaining the investment program for each Fund. Assets of each Fund generally have been allocated among the multiple Money Managers selected by RIMCo, subject to Board approval, for that Fund. RIMCo manages directly a portion of certain Funds’ assets employing a “select holdings strategy,” as described below, and directly manages the investment of each Fund’s cash reserves. RIMCo also may manage directly any portion of each Fund’s assets that RIMCo determines not to allocate to the Money Managers and portions of a Fund during transitions between Money Managers. In all cases, assets are managed directly by RIMCo pursuant to authority provided by the RIMCo Agreement.
RIMCo is responsible for selecting, subject to Board approval, Money Managers for each Fund and for actively managing allocations and reallocations of assets among the Money Managers. The Board has been advised that RIMCo’s goal is to construct and manage diversified portfolios in a risk-aware manner. Each Money Manager for a Fund in effect performs the function of an individual portfolio manager who is responsible for selecting portfolio securities for the portion of the Fund assigned to it by RIMCo (each, a “segment”) in accordance with the Fund’s applicable investment objective, policies and restrictions, any constraints placed by RIMCo upon their selection of portfolio securities and the Money Manager’s specified role in a Fund. RIMCo is responsible for communicating performance expectations to each Money Manager; supervising compliance by each Money Manager with each Fund’s investment objective and policies; authorizing Money Managers to engage in certain investment strategies for a Fund; and recommending annually to the Board whether portfolio management contracts should be renewed, modified or terminated. In
| | |
| Basis for Approval of Investment Advisory Contracts | | 327 |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued (Unaudited)
addition to its annual recommendation as to the renewal, modification or termination of portfolio management contracts, RIMCo is responsible for recommending to the Board additions of new Money Managers or replacements of existing Money Managers at any time when, based on RIMCo’s research and ongoing review and analysis, such actions are appropriate. RIMCo may impose specific investment constraints from time to time for each Money Manager intended to capitalize on the strengths of that Money Manager or to coordinate the investment activities of Money Managers for the Fund in a complementary manner. Therefore, RIMCo’s selection of Money Managers is made not only on the basis of performance considerations but anticipated compatibility with other Money Managers in the same Fund. In light of the foregoing, the overall performance of each Fund over appropriate periods reflects, in great part, the performance of RIMCo in designing the Fund’s investment program, structuring the Fund, selecting an effective Money Manager with a particular investment style or sub-style for a segment that is complementary to the styles of the Money Managers of other Fund segments, and allocating assets among the Money Managers in a manner designed to achieve the objectives of the Fund.
The Board considered that the prospectuses for the Funds and other public disclosures emphasize to investors RIMCo’s role as the principal investment manager for each Fund, rather than the investment selection role of the Funds’ Money Managers, and describe the manner in which the Funds operate so that investors may take that information into account when deciding to purchase shares of any such Fund. The Board further considered that Fund investors in pursuing their investment goals and objectives likely purchased their shares on the basis of this information and RIMCo’s reputation for and performance record in managing the Funds’ manager-of-managers structure.
The Board also considered the demands and complexity of managing the Funds pursuant to the manager-of-managers structure, the special expertise of RIMCo with respect to the manager-of-managers structure of the Funds and the likelihood that, at the current expense ratio of each Fund, there would be no acceptable alternative investment managers to replace RIMCo on comparable terms given the need to continue the manager-of-managers strategy of such Fund selected by shareholders in purchasing their shares.
In addition to these general factors relating to the manager-of-managers structure of the Funds, the Trustees considered, with respect to each Fund, various specific factors in evaluating renewal of the RIMCo Agreement, including the following:
| 1. | The nature, scope and overall quality of the investment management and other services provided, and expected to be provided, to the Fund by RIMCo; |
| 2. | The advisory fee paid by the Fund to RIMCo (the “Advisory Fee”) and the fact that it encompasses all investment advisory fees paid by the Fund, including the fees for any Money Managers of such Fund; |
| 3. | Information provided by RIMCo as to other fees and benefits received by RIMCo or its affiliates from the Fund, including any administrative, transfer agent or cash management fees and fees received for management of securities lending cash collateral, soft dollar arrangements and commissions in connection with portfolio securities transactions; |
| 4. | Information provided by RIMCo as to expenses incurred by the Fund; and |
| 5. | Information provided by RIMCo as to the profits that RIMCo derives from its mutual fund operations generally and from the Fund. |
In evaluating the nature, scope and overall quality of the investment management and other services provided and which are expected to be provided to the Funds, including Fund portfolio management services, the Board inquired as to the possible impact on the Funds’ operations of significant changes in RIMCo’s senior management and other personnel providing services to the Funds during 2009 and 2010 to the date of the Agreement Evaluation Meeting and a planned relocation of the Russell organization’s headquarters by the end of 2010. At the Agreement Evaluation Meeting, senior representatives of RIMCo discussed these changes with the Board and assured the Board that, while these changes likely would have a near term impact because of increased demands upon continuing personnel, steps were being taken to avoid any long-term diminution in the nature, scope or quality of the services provided to the Funds. The Board also discussed the possible impact of such changes on the compliance programs of the Funds and RIMCo and received assurances from senior representatives of the Russell organization that such changes would not result in any long-term diminution in the scope and quality of the Funds’ compliance programs.
As noted above, RIMCo, pursuant to the terms of the RIMCo Agreement, directly manages a portion—up to 10%—of the assets of each of the Russell U.S. Core Equity Fund and the Russell U.S Quantitative Equity Fund (each a “Participating Fund”) utilizing a select holdings strategy, the actual allocation being determined by each Participating Fund’s RIMCo portfolio manager. The select holdings strategy utilized by RIMCo in managing such assets for a Participating Fund is designed to increase the Participating Fund’s exposure to stocks that are viewed as attractive by multiple Money Managers of that Participating Fund. The Board reviewed the results of the select holdings strategy in respect of each Participating Fund during the past year. The Trustees considered that RIMCo is not required to pay investment advisory fees to a Money Manager with respect to assets for which the select holdings strategy is utilized and that the profits derived by RIMCo generally and from each Participating Fund consequently may increase incrementally. The Board, however, also considered RIMCo’s advice that it pays certain Money Managers additional fees for
| | |
| 328 | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued (Unaudited)
providing information and other services in connection with the select holdings strategy and incurs additional costs in carrying out the select holdings strategy, the limited amount of assets that are managed directly by RIMCo pursuant to the select holdings strategy, and the fact that the aggregate investment advisory fees paid by each Participating Fund are not increased as a result of the select holdings strategy.
In evaluating the reasonableness of the Funds’ Advisory Fees in light of Fund performance, the Board considered that, in the Agreement Evaluation Information and at past meetings, RIMCo noted differences between the investment strategies of certain Funds and their respective Comparable Funds in pursuing their investment objectives, including fund strategies which seek to achieve a lower tracking error (i.e., the difference, whether positive or negative, between the return of a fund and its benchmark) and resulting lower return volatility than their Comparable Funds. According to RIMCo, these strategies may be expected to result, and for certain Funds during the periods covered by the Third-Party Information did result, in lower performance than that of some of their Comparable Funds. According to RIMCo, the strategies pursued by the Funds, among other things, are intended to result in less volatile, more moderate returns relative to each Fund’s performance benchmark rather than more volatile, more extreme returns that its Comparable Funds may experience over time, although Fund results in 2008 and early 2009 generally did not reflect uniform success in achieving lesser volatility.
With respect to the Funds’ Advisory Fees, the Third-Party Information showed that the Russell U.S. Growth Fund, Russell U.S. Value Fund, Russell Real Estate Securities Fund, Russell Tax-Managed U.S. Mid & Small Cap Fund, Russell Global Equity Fund, Russell Emerging Markets Fund, Russell Tax-Managed U.S. Large Cap Fund and Russell Short Duration Bond Fund each had an Advisory Fee which on a contractual basis, an actual basis (i.e., giving effect to any voluntary fee waivers implemented by RIMCo and the advisers to such Fund’s Comparable Funds) or on both a contractual and actual basis was ranked in the fourth or fifth quintile of its Expense Universe. The comparisons were based upon the latest fiscal years for the Expense Universe funds. The Board considered that, with the exception of the Russell Global Equity Fund, Russell Emerging Markets Fund, Russell Tax-Managed U.S. Large Cap Fund, Russell Tax-Managed U.S. Mid & Small Cap Fund and the Russell Short Duration Bond Fund, each such Fund’s Advisory Fee was ranked within 5 basis points of the third quintile of its Expense Universe. In assessing the Funds’ Advisory Fees, the Board focused on actual Advisory Fees. The Board further considered RIMCo’s explanation of the reasons for these Funds’ actual Advisory Fee rankings and its belief that the Funds’ Advisory Fees are reasonable notwithstanding such rankings.
In discussing the Funds’ Advisory Fees generally, RIMCo noted, among other things, that its Advisory Fees for Funds other than the Money Market Fund encompass services that may not be provided by investment advisers to the Funds’ Comparable Funds, such as cash equitization and management of portfolio transition costs when Money Managers are added, terminated or replaced. RIMCo also observed that its “margins” in providing investment advisory services to the Funds tend to be lower than competitors’ margins because of the demands and complexities of managing the Funds’ manager-of-managers structure, including RIMCo’s payment of a significant portion of the Funds’ Advisory Fees to their Money Managers.
The Board considered for each Fund whether economies of scale have been realized and whether the Advisory Fee for such Fund appropriately reflects or should be revised to reflect any such economies. The Board noted that, generally, there was a reduction in the Funds’ assets as a result of market declines and related investor redemptions in 2008 and 2009 and that Fund asset levels generally have not rebounded completely from those levels. In the case of certain Funds, asset levels have continued to decline since 2008. The Board therefore determined that, after giving effect to any applicable fee or expense caps, waivers or reimbursements, the Advisory Fee for each Fund appropriately reflected any economies of scale realized by that Fund, based upon net asset flows since 2008 and such factors as the variability of Money Manager investment advisory fees and other factors associated with the manager-of-managers structure employed by the Funds.
The Board considered, as a general matter, that fees payable to RIMCo by institutional clients with investment objectives similar to those of the Funds and other RIC funds under the Board’s supervision are lower, and, in some cases, may be substantially lower, than the rates paid by RIC funds supervised by the Board, including the Funds. The Trustees considered the differences in the nature and scope of services RIMCo provides to institutional clients and the Funds. RIMCo explained, among other things, that institutional clients have fewer administrative needs than the Funds. RIMCo also noted that since the Funds must constantly issue and redeem their shares, they are more difficult to manage than institutional accounts, where assets are relatively stable. In addition, RIMCo noted that the Funds are subject to heightened regulatory requirements relative to institutional clients. The Board noted that RIMCo provides office space and facilities to the Funds and all of the Funds’ officers. Accordingly, the Trustees concluded that the services provided to the Funds are sufficiently different from the services provided to the institutional clients that comparisons are not probative and should not be given significant weight.
With respect to the Funds’ total expenses, the Third-Party Information showed that the total expenses for the Russell Short Duration Bond Fund was ranked in the fifth quintile of its Expense Universe based upon the latest fiscal years for the Expense Universe funds. The Board considered RIMCo’s explanation of this ranking. According to RIMCo, the Fund’s ranking reflected relatively high contractual advisory fees and custody fees. RIMCo noted that new custody fee arrangements did not reduce the Fund’s total expenses
| | |
| Basis for Approval of Investment Advisory Contracts | | 329 |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued (Unaudited)
in 2009 as expected partly because turnover for the Fund was relatively high for the year and assets under management remained flat. RIMCo noted that the Short Duration Fund had positive cash flows during the past year that generally exceeded those of other funds in its category. RIMCo expressed its belief that the Fund’s total expenses were reasonable in light of its performance but the Board determined to continue to monitor the Fund’s total expense levels. On the basis of the Agreement Evaluation Information, and other information previously received by the Board from RIMCo during the course of the current year or prior years, or presented at or in connection with the Agreement Evaluation Meeting by RIMCo, the Board, in respect of each Fund, found, after giving effect to any applicable waivers and/or reimbursements (1) the Advisory Fee charged by RIMCo was reasonable in light of the nature, scope and overall quality of the investment management and other services provided, and expected to be provided, to the Funds; (2) the relative expense ratio of the Fund was comparable to those of its Comparable Funds; (3) RIMCo’s methodology of allocating expenses of operating funds in the complex was reasonable; (4) other benefits and fees received by RIMCo or its affiliates from the Funds were not excessive; and (5) RIMCo’s profitability with respect to the Fund was not excessive in light of the nature, scope and overall quality of the investment management and other services provided by RIMCo.
Although it regarded the 3-year performance of each of the Russell U.S. Value Fund, Russell U.S. Small & Mid Cap Fund, Russell Tax-Managed U.S. Large Cap Fund, Russell U.S. Core Equity Fund and Russell U.S. Quantitative Equity Fund relative to its Performance Universe as disappointing, the Board further concluded that, under the circumstances, the performance of each of the Funds was consistent with continuation of the RIMCo Agreement. The Board, in assessing the Funds’ performance, focused upon each Fund’s performance for the 1-, 3- and 5-year periods as most relevant.
In evaluating the performance of the Funds generally relative to their Comparable Funds, the Board, in addition to factors discussed above, also considered RIMCo’s advice that many of the Funds’ Comparable Funds do not “equitize” their cash (i.e., cash awaiting investment or disbursement to satisfy redemptions or other fund obligations) and may hold large positions uninvested in their investment portfolios. By contrast, the Funds generally follow a strategy of equitizing their cash and fully investing their assets in pursuit of their investment objectives (the Funds’ strategy of equitizing cash and fully investing their assets is hereinafter referred to as their “full investment strategy”). In support of the Funds’ full investment strategy, RIMCo advised the Board of its belief that investors manage their own cash positions based upon their personal investment goals, strategies and risk tolerances and generally expect Fund assets to be fully invested. RIMCo noted that the Funds are distributed primarily through financial intermediaries who determine and manage clients’ cash positions rather than rely on the Funds to hold uninvested cash. RIMCo noted that the Funds’ full investment strategy generally will detract from relative performance in a declining market, such as 2008, but may enhance the Funds’ relative performance in a rising market, such as 2009.
With respect to the Russell U.S. Value Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fifth and fourth quintile of its Performance Universe for the 3- and 5-year periods ended December 31, 2009, respectively, but that its performance was ranked in the first quintile of its Performance Universe for the 1-year period ended such date. The Trustees considered, among other things, management’s belief that the Fund tends to have a deeper value orientation than its Comparable Funds, a tendency which led to greater Fund exposure to market segments that performed poorly during 2008, such as mortgage and housing related stocks. RIMCo advised the Trustees that the Fund’s underperformance in 2008 significantly affected its performance relative to its Comparable Funds for the 3- and 5-year periods ended December 31, 2009. The Fund’s full investment strategy had a substantial negative impact on the Fund’s 2008 performance.
With respect to the Russell U.S. Small & Mid Cap Fund, the Third-Party Information indicated that the Fund’s performance was ranked in the fourth quintile of its Performance Universe for the 3- and 5-year periods ended December 31, 2009 and was ranked in the third quintile for the 1-year period ended such date. RIMCo noted that the Comparable Funds consist of funds investing in small cap stocks while the Russell U.S. Small & Mid Cap Fund invests in both small and mid cap stocks and is managed against a different index. In 2009, the Fund’s bias toward quality was a detractor from performance as speculative stocks outperformed. However, the Fund’s sector selections were positive factors as the economic outlook improved.
With respect to the Russell U.S. Core Equity Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fourth quintile of its Performance Universe for the 3- year period ended December 31, 2009; but was ranked in the second quintile of its Performance Universe for the 1-year period ended such date. RIMCo noted that the Russell U.S. Core Equity Fund’s underperformance during 2008 had a significant negative impact on its performance for the 3- year period. RIMCo noted further that the Fund’s full investment strategy was a significant contributor to the Fund’s underperformance relative to its Comparable Funds in 2008. Lastly, RIMCo expressed its belief that the Russell U.S. Core Equity Fund’s more active managers, who typically take more risk in their individual portfolios in order to achieve higher returns, were particularly affected by the risk-averse market environment of 2008. Certain of the Fund’s more aggressive managers also were particularly significant detractors from performance in 2008.
With respect to the Russell Tax-Managed U.S. Large Cap Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fourth quintile of its Performance Universe for the 3- and 5-year periods ended December 31, 2009, but that its performance for the 1-year period ended on such date was ranked in the first quintile. RIMCo noted that the Russell Tax-Managed
| | |
| 330 | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued (Unaudited)
U.S. Large Cap Fund’s underperformance in 2008 had a significant negative impact on its performance for the 3- and 5-year periods. RIMCo noted further that the Fund’s full investment strategy was a significant contributor to the Fund’s underperformance relative to its Comparable Funds. Lastly, RIMCo noted that Comparable Funds included not only funds that are managed in a tax-aware manner, such as the Russell Tax-Managed U.S. Large Cap Fund, but also funds that are focused on maximizing returns without regard to tax consequences. According to RIMCo, constraints in managing the Russell Tax-Managed U.S. Large Cap Fund in a tax-aware manner put the Fund at a disadvantage relative to its Performance Universe.
With respect to the Russell U.S. Quantitative Equity Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fifth quintile of its Performance Universe for each of the 1-, 3- and 5-year periods ended December 31, 2009. RIMCo expressed the belief that the methodology employed by the Third-Party Information provider in selecting Comparable Funds did not reflect the Fund’s strategy of reduced exposure to small/mid cap stocks and greater exposure to large cap stocks, although the Fund still would have underperformed relative to members of more appropriate peer groups. While the environment for quantitative managers generally has been hostile, RIMCo expressed its view that the Fund’s Money Managers have been particularly impacted. RIMCo believes that the Fund will perform better under more normalized market conditions.
In evaluating performance, the Board considered each Fund’s absolute performance and performance relative to appropriate benchmarks and indices in addition to such Fund’s performance relative to its Comparable Funds. In assessing the Funds’ performance relative to their Comparable Funds or benchmarks or in absolute terms, the Board also considered RIMCo’s stated investment strategy of managing the Funds in a risk-aware manner and the extraordinary capital market conditions during 2008 and early 2009 that continue to impact the Funds’ relative performance for the 3- and, where applicable, 5-year periods ended December 31, 2009.
After considering the foregoing and other relevant factors, the Board concluded that continuation of the RIMCo Agreement on its current terms and conditions would be in the best interests of each Fund and its respective shareholders and voted to approve the continuation of the RIMCo Agreement.
At the Agreement Evaluation Meeting, with respect to the evaluation of the terms of portfolio management contracts with Money Managers, the Board received and considered information from RIMCo reporting, among other things, for each Money Manager, the Money Manager’s performance over various periods; RIMCo’s assessment of the performance of each Money Manager; any significant business relationships between the Money Manager and RIMCo or Russell Financial Services, Inc., the Funds’ underwriter; and RIMCo’s recommendation to retain the Money Manager at the current fee rate, to retain the Money Manager at a reduced fee rate or to terminate the Money Manager. The Board received reports during the course of the year from the Funds’ Chief Compliance Officer regarding each Money Manager’s compliance program. RIMCo recommended that each Money Manager be retained at its current fee rate. RIMCo has advised the Board that it does not regard Money Manager profitability as relevant to its evaluation of the portfolio management contracts with Money Managers because the willingness of Money Managers to serve in such capacity depends upon arm’s-length negotiations with RIMCo; RIMCo is aware of the fees charged by Money Managers to other clients; and RIMCo believes that the fees agreed upon with Money Managers are reasonable in light of the anticipated quality of investment advisory services to be rendered. The Board accepted RIMCo’s explanation in light of the Board’s findings as to the reasonableness of the Advisory Fee paid by each Fund and the fact that each Money Manager’s fee is paid by RIMCo.
Based substantially upon RIMCo’s recommendations, together with the Agreement Evaluation Information and other information received from RIMCo in support of its recommendations at the Agreement Evaluation Meeting, the Board concluded that the fees paid to the Money Managers of each Fund are reasonable in light of the quality of the investment advisory services provided and that continuation of the portfolio management contract with each Money Manager of each Fund would be in the best interests of the Fund and its shareholders.
In their deliberations, the Trustees did not identify any particular information as to the RIMCo Agreement or, other than RIMCo’s recommendation, the portfolio management contract with any Money Manager that was all-important or controlling and each Trustee attributed different weights to the various factors considered. The Trustees evaluated all information available to them on a Fund-by-Fund basis and their determinations were made in respect of each Fund.
| | |
| Basis for Approval of Investment Advisory Contracts | | 331 |
Russell Investment Company
Russell Funds
Shareholder Requests for Additional Information — April 30, 2010 (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 www.russell.com, (iii) on the Securities and Exchange Commission’s website at www.sec.gov, and (iv) at the Securities and Exchange Commission’s public reference room.
The Board has delegated to RIMCo, 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 Funds may be invested. RIMCo has established a proxy voting committee (“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 is available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii) at www.russell.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’ prospectus 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 institution.
Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectus and annual and semiannual reports. Please contact your Financial Intermediary for further details.
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| 332 | | Shareholder Requests for Additional Information |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers — April 30, 2010 (Unaudited)
The following tables provide information for each officer and Trustee of the Russell Fund Complex. The Russell Fund Complex consists of RIC, which has 37 funds, and RIF, which has nine funds. Each of the Trustees is a Trustee of both RIC and RIF. The first table provides information for the interested Trustee. The second table provides information for the independent Trustees. The third table provides information for the Trustees emeritus. The fourth table provides information for the officers.
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
with Fund and
Length of
Time Served | | Term
of
Office* | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
INTERESTED TRUSTEE |
# Greg J. Stark Born May 3, 1968 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer from 2004–January 22, 2010* Trustee since 2007 | | Appointed until successor is duly elected and qualified Until successor is chosen and qualified by Trustees | | •President and CEO RIC and RIF •Chairman of the Board, President and CEO, RIMCo •Chairman of the Board, President and CEO, Russell Fund Services Company (“RFSC”) •Chairman of the Board, President and CEO, Russell Financial Services, Inc. •Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) •Until 2004, Managing Director, of Individual Investor Services, FRC •2000 to 2004 Managing Director, Sales and Client Service, RIMCo | | 46 | | None |
| | | | | | | | | | | |
# Sandra Cavanaugh Born May 10, 1954 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer since 2010 Trustee since 2010 | | Appointed until successor is duly elected and qualified Until successor is chosen and qualified by Trustees | | •President and CEO RIC and RIF •May 2009 to December 2009, Executive Vice President, Retail Channel, SunTrust Bank •2007 to January 2009, Senior Vice President, National Sales — Retail Distribution, JPMorgan Chase/Washington Mutual, Inc. •1997 to 2007, President — WM Funds Distributor & Shareholder Services/WM Financial Services | | 46 | | None |
| # | Mr. Stark is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
| # | Ms. Cavanaugh is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
| * | Effective January 22, 2010, Greg J. Stark resigned as President and Chief Executive Officer of RIC and RIF. Mr. Stark’s successor is Sandra Cavanaugh. |
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| Disclosure of Information about Fund Trustees and Officers | | 333 |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
with Fund and
Length of
Time Served | | Term
of
Office* | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
INDEPENDENT TRUSTEES |
Thaddas L. Alston Born April 7, 1945 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2006 Chairman of the Investment Committee since 2010 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | •Senior Vice President, Larco Investments, Ltd. (real estate firm) | | 46 | | None |
| | | | | | | | | | | |
Kristianne Blake, Born January 22, 1954 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2000 Chairman since 2005 | | Appointed until successor is duly elected and qualified Annual | | •Director and Chairman of the Audit Committee, Avista Corp. •Trustee and Chairman of the Operations Committee, Principal Investor Funds and Principal Variable Contracts Funds •Regent, University of Washington •President, Kristianne Gates Blake, P.S. (accounting services) •February 2002 to June 2005, Chairman of the Audit Committee, RIC and RIF •Trustee and Chairman of the Operations and Distribution Committee, WM Group of Funds, 1999–2006 | | 46 | | •Director, Avista Corp (electric utilities) •Trustee, Principal Investor Funds (investment company); •Trustee, Principal Variable Contracts Funds (investment company) |
| | | | | | | | | | |
| | | | | | | | | | | |
Daniel P. Connealy Born June 6, 1946 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2003 Chairman of the Audit Committee since 2005 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | •June 2004 to present, Senior Vice President and Chief Financial Officer, Waddell & Reed Financial, Inc. | | 46 | | None |
| | | | | | | | | | | |
Jonathan Fine, Born July 8, 1954 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2004 | | Appointed until successor is duly elected and qualified | | •President and Chief Executive Officer, United Way of King County, WA | | 46 | | None |
| | | | | | | | | | | |
Raymond P. Tennison, Jr. Born December 21, 1955 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2000 Chairman of the Nominating and Governance Committee since 2007 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | •Vice Chairman, Simpson Investment Company •Until April 2009, President, Simpson Investment Company and several additional subsidiary companies, including Simpson Timber Company, Simpson Paper Company and Simpson Tacoma Kraft Company | | 46 | | None |
| | |
| 334 | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
with Fund and
Length of
Time Served | | Term
of
Office* | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
INDEPENDENT TRUSTEES (continued) |
Jack R. Thompson, Born March 21, 1949 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2005 | | Appointed until successor is duly elected and qualified | | •September 2003 to September 2009, Independent Board Chair and Chairman of the Audit Committee, Sparx Asia Funds •September 2007 to present, Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation (health products company) | | 46 | | •Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation (health products company) |
| | | | | | | | | | | |
Julie W. Weston, Born October 2, 1943 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2002 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | Retired | | 46 | | None |
| * | Each Trustee is subject to mandatory retirement at age 72. |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 335 |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
with Fund and
Length of
Time Served | | Term
of
Office | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
TRUSTEES EMERITUS | | | | | | | | | | |
* George F. Russell, Jr., Born July 3, 1932 909 A Street Tacoma, Washington 98402-1616 | | Trustee Emeritus and Chairman Emeritus since 1999 | | Until resignation or removal | | •Director Emeritus, Frank Russell Company (investment consultant to institutional investors (“FRC”)) and RIMCo •Chairman Emeritus, RIC and RIF; Russell Implementation Services Inc. (broker-dealer and investment adviser (“RIS”)); Russell 20-20 Association (non-profit corporation); and Russell Trust Company (non-depository trust company (“RTC”)) •Chairman, Sunshine Management Services, LLC (investment adviser) | | 46 | | None |
| | | | | | | | | | | |
Paul E. Anderson, Born October 15, 1931 909 A Street Tacoma, Washington 98402-1616 | | Trustee Emeritus since 2007 | | Five year term | | •President, Anderson Management Group LLC (private investments consulting) •Trustee, RIC and RIF until 2006 •February 2002 to June 2005, Lead Trustee, RIC and RIF •Chairman of the Nominating and Governance Committee, 2006 | | 46 | | None |
| | | | | | | | | | | |
Lee C. Gingrich, Born October 6, 1930 909 A Street Tacoma, Washington 98402-1616 | | Trustee Emeritus since 2006 | | Five year term | | •Retired since 1995 •Trustee of RIC and RIF until 2005 •Chairman of the Nominating and Governance Committee 2001–2005 | | 46 | | None |
| * | Mr. Russell is also a director emeritus of one or more affiliates of RIC and RIF. |
| | |
| 336 | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | |
Name,
Age,
Address | | Position(s) Held
with Fund and
Length of
Time Served | | Term
of
Office | | Principal Occupation(s)
During the
Past 5 Years |
OFFICERS | | | | | | |
Cheryl Wichers Born December 16, 1966 909 A Street Tacoma, Washington 98402-1616 | | Chief Compliance Officer since 2005 | | Until removed by Independent Trustees | | •Chief Compliance Officer, RIC •Chief Compliance Officer, RIF •Chief Compliance Officer, RIMCo •Chief Compliance Officer, RFSC •April 2002–May 2005, Manager, Global Regulatory Policy |
| | | | | | | |
Greg J. Stark, Born May 3, 1968 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer from 2004–January 22, 2010 | | Until successor is chosen and qualified by Trustees | | •President and CEO, RIC and RIF •Chairman of the Board, President and CEO, RIMCo •Chairman of the Board, President and CEO, Russell Financial Services, Inc. •Chairman of the Board, President and CEO, RFSC •Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) •Until 2004, Managing Director of Individual Investor Services, FRC •2000 to 2004, Managing Director, Sales and Client Service, RIMCo |
| | | | | | | |
Sandra Cavanaugh Born May 10, 1954 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer since 2010 | | Appointed until successor is duly elected and qualified | | •President and CEO RIC and RIF •May 2009 to December 2009, Executive Vice President, Retail Channel, SunTrust Bank •2007 to January 2009, Senior Vice President, National Sales — Retail Distribution, JPMorgan Chase/Washington Mutual, Inc. •1997 to 2007, President — WM Funds Distributor & Shareholder Services/WM Financial Services |
| | | | | | | |
Mark E. Swanson, Born November 26, 1963 909 A Street Tacoma, Washington 98402-1616 | | Treasurer and Chief Accounting Officer since 1998 | | Until successor is chosen and qualified by Trustees | | •Treasurer, Chief Accounting Officer and CFO, RIC and RIF •Director, Funds Administration, RIMCo, RFSC, RTC and Russell Financial Services, Inc. •Treasurer and Principal Accounting Officer, SSgA Funds |
| | | | | | | |
Peter Gunning, Born February 22, 1967 909 A Street Tacoma, Washington 98402-1616 | | Chief Investment Officer since 2008 | | Until removed by Trustees | | •Chief Investment Officer, RIC and RIF •Director, RIMCo and FRC •1996 to 2008 Chief Investment Officer, Russell, Asia Pacific |
| | | | | | | |
Gregory J. Lyons, Born August 24, 1960 909 A Street Tacoma, Washington 98402-1616 | | Secretary since 2007 | | Until successor is chosen and qualified by Trustees | | •U.S. General Counsel and Assistant Secretary, FRC •Director and Assistant Secretary, RIA •Secretary, RIMCo, RFSC and Russell Financial Services, Inc. •Secretary and Chief Legal Counsel, RIC and RIF |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 337 |
Russell Funds
Russell Investment Company
909 A Street, Tacoma, Washington 98402
(800) 787-7354
Interested Trustee
Sandra Cavanaugh
Independent Trustees
Thaddas L. Alston
Kristianne Blake
Daniel P. Connealy
Jonathan Fine
Raymond P. Tennison, Jr.
Jack R. Thompson
Julie W. Weston
Trustees Emeritus
George F. Russell, Jr.
Paul E. Anderson
Lee C. Gingrich
Officers
Sandra Cavanaugh, President and Chief Executive Officer
Cheryl Wichers, Chief Compliance Officer
Peter Gunning, Chief Investment Officer
Mark E. Swanson, Treasurer and Chief Accounting Officer
Gregory J. Lyons, Secretary
Adviser
Russell Investment Management Company
909 A Street
Tacoma, WA 98402
Administrator and Transfer and Dividend Disbursing Agent
Russell Fund Services Company
909 A Street
Tacoma, WA 98402
Custodian
State Street Bank and Trust Company
Josiah Quincy Building
200 Newport Avenue
North Quincy, MA 02171
Office of Shareholder Inquiries
909 A Street
Tacoma, WA 98402
(800) 787-7354
Legal Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116-5021
Distributor
Russell Financial Services, Inc.
909 A Street
Tacoma, WA 98402
Money Managers as of April 30, 2010
Russell U.S. Core Equity Fund
BlackRock Capital Management, Inc., New York, NY
Columbus Circle Investors, Stamford, CT
First Eagle Investment Management, LLC, New York, NY
Institutional Capital LLC, Chicago, IL
Lazard Asset Management, LLC, New York, NY
MFS Institutional Advisors, Inc., Boston, MA
Montag & Caldwell, Inc., Atlanta, GA
Schneider Capital Management Corporation, Wayne, PA
Snow Capital Management L.P., Sewickley, PA
Suffolk Capital Management, LLC, New York, NY
Russell U.S. Quantitative Equity Fund
Aronson+Johnson+Ortiz, LP, Philadelphia, PA
Goldman Sachs Asset Management, L.P., New York, NY
INTECH Investment Management LLC, West Palm Beach, FL
Jacobs Levy Equity Management, Inc., Florham Park, NJ
Numeric Investors LLC, Boston, MA
Russell U.S. Growth Fund
Cornerstone Capital Management, Inc., Bloomington, MN
Delaware Management Company, a Series of Delaware Management Business Trust, Philadelphia, PA
Suffolk Capital Management, LLC, New York, NY
Sustainable Growth Advisers, LP, Stamford, CT
Turner Investment Partners, Inc., Berwyn, PA
Russell U.S. Value Fund
DePrince, Race & Zollo, Inc., Winter Park, FL
Iridian Asset Management LLC, Westport, CT
JS Asset Management, LLC, West Conshohocken, PA
Systematic Financial Management, L.P., Teaneck, NJ
Russell U.S. Small & Mid Cap Fund
ClariVest Asset Management LLC, San Diego, CA
Delphi Management, Inc., Boston, MA
DePrince, Race & Zollo, Inc., Winter Park, FL
Jacobs Levy Equity Management, Inc., Florham Park, NJ
Next Century Growth Investors, LLC, Minneapolis, MN
Ranger Investment Management, L.P., Dallas, TX
Signia Capital Management, LLC, Spokane, WA
Tygh Capital Management, Inc., Portland, OR
Russell International Developed Markets Fund
AllianceBernstein L.P., New York, NY
AQR Capital Management, LLC, Greenwich, CT
Axiom International Investors LLC, Greenwich, CT
Marsico Capital Management, LLC, Denver, CO
MFS Institutional Advisors, Inc., Boston, MA
Mondrian Investment Partners Limited, London, United Kingdom
Pzena Investment Management, LLC, New York, NY
UBS Global Asset Management (Americas) Inc., Chicago, IL
William Blair & Company, LLC, Chicago, IL
Russell Global Equity Fund
Gartmore Global Partners, London, United Kingdom
Harris Associates, L.P., Chicago, IL
MFS Institutional Advisors, Inc., Boston, MA
Tradewinds Global Investors, LLC, Los Angeles, CA
T. Rowe Price International, Inc., Baltimore, MD
Russell Emerging Markets Fund
AllianceBernstein L.P., New York, NY
Arrowstreet Capital, Limited Partnership, Boston, MA
Genesis Asset Managers, LLP, London, United Kingdom
Harding Loevner LLC, Somerville, NJ
T. Rowe Price International, Inc., Baltimore, MD
UBS Global Asset Management (Americas) Inc., Chicago, IL
| | |
| 338 | | Adviser, Money Managers and Service Providers |
Russell Funds
Russell Investment Company
909 A Street, Tacoma, Washington 98402
(800) 787-7354
Russell Tax-Managed U.S. Large Cap Fund
Armstrong Shaw Associates Inc., New Canaan, CT
J.P. Morgan Investment Management Inc., New York, NY
Palisades Investment Partners, LLC, Santa Monica, CA
Sands Capital Management, Inc., Arlington, VA
Turner Investment Partners, Inc., Berwyn, PA
Russell Tax-Managed U.S. Mid & Small Cap Fund
Chartwell Investment Partners, Berwyn, PA
Netols Asset Management, Inc., Mequon, WI
Parametric Portfolio Associates LLC, Seattle, WA
Summit Creek Advisors, LLC, Minneapolis, MN
Turner Investment Partners, Inc., Berwyn, PA
Russell Strategic Bond Fund
Brookfield Investment Management Inc., New York, NY
Goldman Sachs Asset Management, L.P., New York, NY
Logan Circle Partners, L.P., Philadelphia, PA
Metropolitan West Asset Management, LLC, Los Angeles, CA
Pacific Investment Management Company LLC, Newport Beach, CA
Russell Investment Grade Bond Fund
Metropolitan West Asset Management, LLC, Los Angeles, CA
Neuberger Berman Fixed Income LLC, Chicago, IL
Pacific Investment Management Company LLC, Newport Beach, CA
Western Asset Management Company, Pasadena, CA
Western Asset Management Company Limited, London, England
Russell Short Duration Bond Fund
Logan Circle Partners, L.P., Philadelphia, PA
Pacific Investment Management Company LLC, Newport Beach, CA
Russell Tax Exempt Bond Fund
Delaware Management Company, a Series of Delaware Management Business Trust, Philadelphia, PA
Standish Mellon Asset Management Company LLC, Boston, MA
Russell Real Estate Securities Fund
AEW Capital Management, L.P., Boston, MA
Cohen & Steers Capital Management, Inc., New York, NY
Heitman Real Estate Securities LLC, Chicago, IL
INVESCO Advisers, Inc. which acts as a money manager to the Fund through its INVESCO Real Estate Division, Dallas, TX
Russell Money Market Fund
Russell Investment Management Company, Tacoma, WA
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 | | 339 |
| | | | |
| Russell Investment Company | | 909 A Street | | 800-787-7354 |
| | Tacoma, Washington 98402 | | Fax: 253-591-3495 |
| | | | www.russell.com |
36-08-226
2010 SEMIANNUAL REPORT
LifePoints® Funds
APRIL 30, 2010
| | |
| FUND | | SHARE CLASS |
| |
| Conservative Strategy Fund | | A, C, E, R1, R2, R3, S |
| |
| Moderate Strategy Fund | | A, C, E, R1, R2, R3, S |
| |
| Balanced Strategy Fund | | A, C, E, R1, R2, R3, S |
| |
| Growth Strategy Fund | | A, C, E, R1, R2, R3, S |
| |
| Equity Growth Strategy Fund | | A, C, E, R1, R2, R3, S |
| |
| 2010 Strategy Fund | | A, E, R1, R2, R3, S |
| |
| 2015 Strategy Fund | | R1, R2, R3 |
| |
| 2020 Strategy Fund | | A, E, R1, R2, R3, S |
| |
| 2025 Strategy Fund | | R1, R2, R3 |
| |
| 2030 Strategy Fund | | A, E, R1, R2, R3, S |
| |
| 2035 Strategy Fund | | R1, R2, R3 |
| |
| 2040 Strategy Fund | | A, E, R1, R2, R3, S |
| |
| 2045 Strategy Fund | | R1, R2, R3 |
| |
| 2050 Strategy Fund | | R1, R2, R3 |
| |
| In Retirement Fund | | R1, R2, R3 |
Russell Investment Company
Russell Investment Company is a series investment company with 37 different investment portfolios referred to as Funds. These financial statements report on 15 of these Funds.
Russell Investment Company
LifePoints® Funds
Semi-annual Report
April 30, 2010 (Unaudited)
Table of Contents
Russell Investment Company - LifePoints® Funds.
Copyright © Russell Investments 2010. All rights reserved.
Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
Fund objectives, risks, charges and expenses should be carefully considered before investing. 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 Financial Services, Inc. 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 www.russell.com/us/fundperformance.
Russell Investment Company
Conservative Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,073.10 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.72 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,069.10 | | $ | 1,018.45 |
Expenses Paid During Period* | | $ | 6.57 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,072.80 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.72 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Conservative Strategy Fund | | 3 |
Russell Investment Company
Conservative Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,073.80 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.44 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,072.90 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.72 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,071.50 | | $ | 1,020.93 |
Expenses Paid During Period* | | $ | 4.01 | | $ | 3.91 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.78% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,074.70 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.44 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 4 | | Conservative Strategy Fund |
Russell Investment Company
Conservative Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 99.9% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 80.0% | | | | |
Russell Investment Grade Bond Fund | | 5,554,275 | | 121,361 |
Russell Short Duration Bond Fund | | 6,321,671 | | 121,186 |
Russell Strategic Bond Fund | | 22,667,280 | | 243,220 |
| | | | |
| | | | 485,767 |
| | | | |
| | |
| Domestic Equities - 11.0% | | | | |
Russell Real Estate Securities Fund | | 541,923 | | 18,745 |
Russell U.S. Core Equity Fund | | 923,181 | | 24,113 |
Russell U.S. Quantitative Equity Fund | | 881,292 | | 23,989 |
| | | | |
| | | | 66,847 |
| | | | |
| | |
| International Equities - 8.9% | | | | |
Russell Global Equity Fund | | 3,723,081 | | 30,157 |
Russell International Developed Markets Fund | | 817,669 | | 24,097 |
| | | | |
| | | | 54,254 |
| | | | |
| | |
Total Investments - 99.9%
(identified cost $572,955) | | | | 606,868 |
| | |
Other Assets and Liabilities,
Net - 0.1% | | | | 380 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 607,248 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Conservative Strategy Fund | | 5 |
Russell Investment Company
Moderate Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,094.20 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.75 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,090.30 | | $ | 1,018.45 |
Expenses Paid During Period* | | $ | 6.63 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,094.20 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.75 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
Moderate Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,094.90 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.45 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,094.10 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.75 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,092.60 | | $ | 1,020.93 |
Expenses Paid During Period* | | $ | 4.05 | | $ | 3.91 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.78% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,096.00 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.46 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 60.0% | | | | |
Russell Investment Grade Bond Fund | | 9,610,290 | | 209,985 |
Russell Strategic Bond Fund | | 39,325,656 | | 421,964 |
| | | | |
| | | | 631,949 |
| | | | |
| | |
| Domestic Equities - 23.1% | | | | |
Russell Real Estate Securities Fund | | 948,487 | | 32,808 |
Russell U.S. Core Equity Fund | | 3,232,128 | | 84,423 |
Russell U.S. Quantitative Equity Fund | | 3,450,342 | | 93,918 |
Russell U.S. Small & Mid Cap Fund | | 1,564,663 | | 32,217 |
| | | | |
| | | | 243,366 |
| | | | |
| | |
| International Equities - 16.9% | | | | |
Russell Emerging Markets Fund | | 1,147,544 | | 21,218 |
Russell Global Equity Fund | | 7,773,057 | | 62,962 |
Russell International Developed Markets Fund | | 3,159,396 | | 93,107 |
| | | | |
| | | | 177,287 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $1,028,957) | | | | 1,052,602 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | 220 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 1,052,822 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Balanced Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,112.00 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.78 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,107.10 | | $ | 1,018.45 |
Expenses Paid During Period* | | $ | 6.69 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,110.60 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.77 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
Balanced Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,113.40 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.47 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,111.70 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.78 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,109.40 | | $ | 1,020.93 |
Expenses Paid During Period* | | $ | 4.08 | | $ | 3.91 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.78% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,113.40 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.47 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 10 | | Balanced Strategy Fund |
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 99.9% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 39.4% | | | | |
Russell Strategic Bond Fund | | 165,720,774 | | 1,778,184 |
| | | | |
| | |
| Domestic Equities - 35.6% | | | | |
Russell Real Estate Securities Fund | | 6,965,147 | | 240,925 |
Russell U.S. Core Equity Fund | | 22,741,900 | | 594,018 |
Russell U.S. Quantitative Equity Fund | | 21,552,475 | | 586,658 |
Russell U.S. Small & Mid Cap Fund | | 9,085,697 | | 187,075 |
| | | | |
| | | | 1,608,676 |
| | | | |
| | |
| International Equities - 24.9% | | | | |
Russell Emerging Markets Fund | | 7,466,761 | | 138,060 |
Russell Global Equity Fund | | 44,772,157 | | 362,654 |
Russell International Developed Markets Fund | | 21,082,958 | | 621,315 |
| | | | |
| | | | 1,122,029 |
| | | | |
| | |
Total Investments - 99.9%
(identified cost $4,520,633) | | | | 4,508,889 |
| | |
| Other Assets and Liabilities, Net - 0.1% | | | | 2,637 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 4,511,526 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Balanced Strategy Fund | | 11 |
Russell Investment Company
Growth Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,126.80 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.79 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,122.10 | | $ | 1,018.45 |
Expenses Paid During Period* | | $ | 6.73 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,127.80 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.80 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
Growth Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,128.20 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.48 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,126.50 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.79 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,126.40 | | $ | 1,020.93 |
Expenses Paid During Period* | | $ | 4.11 | | $ | 3.91 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.78% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,128.20 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.48 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
Growth Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Shares | | Market
Value
$ | |
| | | | | |
| Investments - 100.0% | | | | | |
Other Russell Investment Company Series Mutual Funds | | | | | |
| | |
| Bonds - 19.6% | | | | | |
Russell Strategic Bond Fund | | 56,495,792 | | 606,200 | |
| | | | | |
| | |
| Domestic Equities - 47.7% | | | | | |
Russell Real Estate Securities Fund | | 5,677,622 | | 196,389 | |
Russell U.S. Core Equity Fund | | 21,436,553 | | 559,923 | |
Russell U.S. Quantitative Equity Fund | | 19,207,326 | | 522,823 | |
Russell U.S. Small & Mid Cap Fund | | 9,248,891 | | 190,435 | |
| | | | | |
| | | | 1,469,570 | |
| | | | | |
| | |
| International Equities - 32.7% | | | | | |
Russell Emerging Markets Fund | | 6,751,293 | | 124,832 | |
Russell Global Equity Fund | | 38,075,337 | | 308,410 | |
Russell International Developed Markets Fund | | 19,473,507 | | 573,884 | |
| | | | | |
| | | | 1,007,126 | |
| | | | | |
| | |
Total Investments - 100.0%
(identified cost $3,239,258) | | | | 3,082,896 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | (901 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 3,081,995 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Equity Growth Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,138.50 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.81 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class C | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.50 | | $ | 1,018.45 |
Expenses Paid During Period* | | $ | 6.77 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,138.80 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.81 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| Equity Growth Strategy Fund | | 15 |
Russell Investment Company
Equity Growth Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,140.00 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.49 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,140.10 | | $ | 1,022.17 |
Expenses Paid During Period* | | $ | 2.81 | | $ | 2.66 |
| * | 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 one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,137.50 | | $ | 1,020.93 |
Expenses Paid During Period* | | $ | 4.13 | | $ | 3.91 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.78% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,141.30 | | $ | 1,023.41 |
Expenses Paid During Period* | | $ | 1.49 | | $ | 1.40 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.28% (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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | |
| 16 | | Equity Growth Strategy Fund |
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Shares | | Market
Value
$ | |
| | | | | |
| Investments - 100.0% | | | | | |
Other Russell Investment Company Series Mutual Funds | | | | | |
| | |
| Domestic Equities - 59.5% | | | | | |
Russell Real Estate Securities Fund | | 2,994,768 | | 103,589 | |
Russell U.S. Core Equity Fund | | 12,731,179 | | 332,538 | |
Russell U.S. Quantitative Equity Fund | | 11,611,052 | | 316,053 | |
Russell U.S. Small & Mid Cap Fund | | 4,930,400 | | 101,517 | |
| | | | | |
| | | | 853,697 | |
| | | | | |
| | |
| International Equities - 40.5% | | | | | |
Russell Emerging Markets Fund | | 3,892,400 | | 71,971 | |
Russell Global Equity Fund | | 22,983,530 | | 186,167 | |
Russell International Developed Markets Fund | | 10,990,814 | | 323,899 | |
| | | | | |
| | | | 582,037 | |
| | | | | |
| Total Investments - 100.0% | | | | | |
(identified cost $1,551,751) | | | | 1,435,734 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | (470 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 1,435,264 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Equity Growth Strategy Fund | | 17 |
Russell Investment Company
2010 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,089.60 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.30 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,088.30 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,090.70 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2010 Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,088.50 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,087.60 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.59 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,090.40 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2010 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Shares | | Market
Value
$ | |
| | | | | |
| Investments - 100.0% | | | | | |
Other Russell Investment Company Series Mutual Funds | | | | | |
| | |
| Bonds - 68.3% | | | | | |
Russell Investment Grade Bond Fund | | 742,938 | | 16,233 | |
Russell Short Duration Bond Fund | | 338,232 | | 6,484 | |
Russell Strategic Bond Fund | | 3,027,798 | | 32,488 | |
| | | | | |
| | | | 55,205 | |
| | | | | |
| Domestic Equities - 18.0% | | | | | |
Russell Real Estate Securities Fund | | 71,000 | | 2,456 | |
Russell U.S. Core Equity Fund | | 195,821 | | 5,115 | |
Russell U.S. Quantitative Equity Fund | | 204,955 | | 5,579 | |
Russell U.S. Small & Mid Cap Fund | | 69,428 | | 1,429 | |
| | | | | |
| | | | 14,579 | |
| | | | | |
| International Equities - 13.7% | | | | | |
Russell Emerging Markets Fund | | 52,219 | | 966 | |
Russell Global Equity Fund | | 553,876 | | 4,486 | |
Russell International Developed Markets Fund | | 190,558 | | 5,616 | |
| | | | | |
| | | | 11,068 | |
| | | | | |
| | |
Total Investments - 100.0%
(identified cost $74,885) | | | | 80,852 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | (18 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 80,834 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2015 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,101.00 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,099.00 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.30 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,098.00 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.60 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2015 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 58.4% | | | | |
Russell Investment Grade Bond Fund | | 201,082 | | 4,393 |
Russell Strategic Bond Fund | | 911,804 | | 9,784 |
| | | | |
| | | | 14,177 |
| | | | |
| | |
| Domestic Equities - 24.0% | | | | |
Russell Real Estate Securities Fund | | 22,985 | | 795 |
Russell U.S. Core Equity Fund | | 78,078 | | 2,039 |
Russell U.S. Quantitative Equity Fund | | 82,613 | | 2,249 |
Russell U.S. Small & Mid Cap Fund | | 36,001 | | 741 |
| | | | |
| | | | 5,824 |
| | | | |
| | |
| International Equities - 17.6% | | | | |
Russell Emerging Markets Fund | | 27,357 | | 506 |
Russell Global Equity Fund | | 183,810 | | 1,489 |
Russell International Developed Markets
Fund | | 77,257 | | 2,277 |
| | | | |
| | | | 4,272 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $21,640) | | | | 24,273 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | 9 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 24,282 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2020 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,108.40 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,108.30 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,110.60 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2020 Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,108.60 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,106.50 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.61 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,110.40 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2020 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Shares | | Market
Value
$ | |
| | | | | |
| Investments - 100.0% | | | | | |
Other Russell Investment Company
Series Mutual Funds | | | | | |
| | |
| Bonds - 48.3% | | | | | |
Russell Investment Grade Bond Fund | | 807,364 | | 17,641 | |
Russell Strategic Bond Fund | | 8,228,830 | | 88,295 | |
| | | | | |
| | | | 105,936 | |
| | | | | |
| | |
| Domestic Equities - 30.1% | | | | | |
Russell Real Estate Securities Fund | | 277,429 | | 9,596 | |
Russell U.S. Core Equity Fund | | 915,824 | | 23,921 | |
Russell U.S. Quantitative Equity Fund | | 908,748 | | 24,736 | |
Russell U.S. Small & Mid Cap Fund | | 380,735 | | 7,840 | |
| | | | | |
| | | | 66,093 | |
| | | | | |
| International Equities - 21.6% | | | | | |
Russell Emerging Markets Fund | | 307,342 | | 5,683 | |
Russell Global Equity Fund | | 1,934,235 | | 15,667 | |
Russell International Developed Markets Fund | | 885,641 | | 26,100 | |
| | | | | |
| | | | 47,450 | |
| | | | | |
| | |
Total Investments - 100.0%
(identified cost $204,208) | | | | 219,479 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | (62 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 219,417 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2025 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,122.30 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,122.60 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,120.70 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.63 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2025 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 33.3% | | | | |
Russell Strategic Bond Fund | | 812,235 | | 8,715 |
| | | | |
| | |
| Domestic Equities - 39.1% | | | | |
Russell Real Estate Securities Fund | | 41,590 | | 1,439 |
Russell U.S. Core Equity Fund | | 146,692 | | 3,832 |
Russell U.S. Quantitative Equity Fund | | 137,114 | | 3,732 |
Russell U.S. Small & Mid Cap Fund | | 59,124 | | 1,217 |
| | | | |
| | | | 10,220 |
| | | | |
| | |
| International Equities - 27.6% | | | | |
Russell Emerging Markets Fund | | 47,140 | | 872 |
Russell Global Equity Fund | | 278,717 | | 2,258 |
Russell International Developed Markets
Fund | | 138,320 | | 4,076 |
| | | | |
| | | | 7,206 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $23,155) | | | | 26,141 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | 1 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 26,142 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2030 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.90 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.40 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,136.60 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2030 Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.80 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.60 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.65 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,137.70 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2030 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Shares | | Market
Value $ | |
| | | | | |
| Investments - 100.0% | | | | | |
Other Russell Investment Company Series Mutual Funds | | | | | |
| | |
| Bonds - 13.2% | | | | | |
Russell Strategic Bond Fund | | 2,212,829 | | 23,744 | |
| | | | | |
| | |
| Domestic Equities - 51.2% | | | | | |
Russell Real Estate Securities Fund | | 341,924 | | 11,827 | |
Russell U.S. Core Equity Fund | | 1,349,922 | | 35,260 | |
Russell U.S. Quantitative Equity Fund | | 1,226,186 | | 33,377 | |
Russell U.S. Small & Mid Cap Fund | | 553,722 | | 11,401 | |
| | | | | |
| | | | 91,865 | |
| | | | | |
| | |
| International Equities - 35.6% | | | | | |
Russell Emerging Markets Fund | | 421,229 | | 7,788 | |
Russell Global Equity Fund | | 2,432,878 | | 19,706 | |
Russell International Developed Markets
Fund | | 1,230,531 | | 36,264 | |
| | | | | |
| | | | 63,758 | |
| | | | | |
| | |
Total Investments - 100.0%
(identified cost $170,274) | | | | 179,367 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | (53 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 179,314 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2035 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,136.90 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.70 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,133.90 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.65 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2035 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | �� | |
Other Russell Investment Company
Series Mutual Funds | | | | |
| | |
| Bonds - 10.2% | | | | |
Russell Strategic Bond Fund | | 143,167 | | 1,536 |
| | | | |
| | |
| Domestic Equities - 53.0% | | | | |
Russell Real Estate Securities Fund | | 28,956 | | 1,002 |
Russell U.S. Core Equity Fund | | 117,621 | | 3,072 |
Russell U.S. Quantitative Equity Fund | | 107,192 | | 2,918 |
Russell U.S. Small & Mid Cap Fund | | 47,173 | | 971 |
| | | | |
| | | | 7,963 |
| | | | |
| | |
| International Equities - 36.8% | | | | |
Russell Emerging Markets Fund | | 36,503 | | 675 |
Russell Global Equity Fund | | 212,416 | | 1,720 |
Russell International Developed Markets
Fund | | 106,162 | | 3,129 |
| | | | |
| | | | 5,524 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $13,143) | | | | 15,023 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | 1 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 15,024 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2040 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class A | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.50 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class E | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.40 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,136.70 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2040 Strategy Fund
Shareholder Expense Example, continued — April 30, 2010 (Unaudited)
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.80 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,133.60 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.65 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class S | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,136.50 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2040 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | |
| | | Shares | | Market
Value
$ | |
| | | | | |
| Investments - 100.0% | | | | | |
Other Russell Investment Company Series Mutual Funds | | | | | |
| | |
| Bonds - 10.2% | | | | | |
Russell Strategic Bond Fund | | 1,310,236 | | 14,059 | |
| | | | | |
| | |
| Domestic Equities - 53.1% | | | | | |
Russell Real Estate Securities Fund | | 270,427 | | 9,354 | |
Russell U.S. Core Equity Fund | | 1,079,477 | | 28,196 | |
Russell U.S. Quantitative Equity Fund | | 982,762 | | 26,751 | |
Russell U.S. Small & Mid Cap Fund | | 437,132 | | 9,000 | |
| | | | | |
| | | | 73,301 | |
| | | | | |
| | |
| International Equities - 36.7% | | | | | |
Russell Emerging Markets Fund | | 335,310 | | 6,200 | |
Russell Global Equity Fund | | 1,948,277 | | 15,781 | |
Russell International Developed Markets Fund | | 973,403 | | 28,686 | |
| | | | | |
| | | | 50,667 | |
| | | | | |
| | |
Total Investments - 100.0%
(identified cost $129,330) | | | | 138,027 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | (34 | ) |
| | | | | |
| | |
| Net Assets - 100.0% | | | | 137,993 | |
| | | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2045 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.70 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.90 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.20 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.65 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2045 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 10.1% | | | | |
Russell Strategic Bond Fund | | 80,330 | | 862 |
| | | | |
| | |
| Domestic Equities - 53.1% | | | | |
Russell Real Estate Securities Fund | | 16,543 | | 572 |
Russell U.S. Core Equity Fund | | 66,648 | | 1,741 |
Russell U.S. Quantitative Equity Fund | | 60,780 | | 1,654 |
Russell U.S. Small & Mid Cap Fund | | 26,834 | | 553 |
| | | | |
| | | | 4,520 |
| | | | |
| | |
| International Equities - 36.8% | | | | |
Russell Emerging Markets Fund | | 20,702 | | 383 |
Russell Global Equity Fund | | 120,473 | | 976 |
Russell International Developed Markets
Fund | | 60,356 | | 1,778 |
| | | | |
| | | | 3,137 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $7,454) | | | | 8,519 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | 3 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 8,522 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2050 Strategy Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,135.80 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,134.90 | | $ | 1,023.55 |
Expenses Paid During Period* | | $ | 1.32 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,133.90 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.65 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
2050 Strategy Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | | |
Other Russell Investment Company
Series Mutual Funds | | | | |
| | |
| Bonds - 10.0% | | | | |
Russell Strategic Bond Fund | | 159,418 | | 1,710 |
| | | | |
| | |
| Domestic Equities - 53.1% | | | | |
Russell Real Estate Securities Fund | | 32,966 | | 1,140 |
Russell U.S. Core Equity Fund | | 133,450 | | 3,486 |
Russell U.S. Quantitative Equity Fund | | 121,753 | | 3,314 |
Russell U.S. Small & Mid Cap Fund | | 53,648 | | 1,105 |
| | | | |
| | | | 9,045 |
| | | | |
| | |
| International Equities - 36.9% | | | | |
Russell Emerging Markets Fund | | 41,432 | | 766 |
Russell Global Equity Fund | | 241,484 | | 1,956 |
Russell International Developed Markets
Fund | | 121,201 | | 3,572 |
| | | | |
| | | | 6,294 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $13,495) | | | | 17,049 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | — |
| | | | |
| | |
| Net Assets - 100.0% | | | | 17,049 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
In Retirement Fund
Shareholder Expense Example — April 30, 2010 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory and administrative fees; distribution (12b-1) and/or service fees; and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for this Fund is from November 1, 2009 to April 30, 2010.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | |
Class R1 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,089.60 | | $ | 1,024.79 |
Expenses Paid During Period* | | $ | 0.00 | | $ | 0.00 |
| * | There were no expenses charged to the Class. Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R2 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,088.60 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
| | | | | | |
Class R3 | | Actual
Performance | | Hypothetical
Performance
(5% return
before expenses) |
| | | | | | |
Beginning Account Value | | | | | | |
November 1, 2009 | | $ | 1,000.00 | | $ | 1,000.00 |
Ending Account Value | | | | | | |
April 30, 2010 | | $ | 1,086.60 | | $ | 1,022.32 |
Expenses Paid During Period* | | $ | 2.59 | | $ | 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). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Russell Investment Company
In Retirement Fund
Schedule of Investments — April 30, 2010 (Unaudited)
Amounts in thousands (except share amounts)
| | | | |
| | | Shares | | Market
Value
$ |
| | | | |
| Investments - 100.0% | | | | |
Other Russell Investment Company Series Mutual Funds | | | | |
| | |
| Bonds - 68.2% | | | | |
Russell Investment Grade Bond Fund | | 47,723 | | 1,043 |
Russell Short Duration Bond Fund | | 21,708 | | 416 |
Russell Strategic Bond Fund | | 194,658 | | 2,089 |
| | | | |
| | | | 3,548 |
| | | | |
| | |
| Domestic Equities - 18.1% | | | | |
Russell Real Estate Securities Fund | | 4,562 | | 158 |
Russell U.S. Core Equity Fund | | 12,674 | | 331 |
Russell U.S. Quantitative Equity Fund | | 13,248 | | 360 |
Russell U.S. Small & Mid Cap Fund | | 4,499 | | 93 |
| | | | |
| | | | 942 |
| | | �� | |
| | |
| International Equities - 13.7% | | | | |
Russell Emerging Markets Fund | | 3,385 | | 63 |
Russell Global Equity Fund | | 35,955 | | 291 |
Russell International Developed Markets
Fund | | 12,230 | | 360 |
| | | | |
| | | | 714 |
| | | | |
| | |
Total Investments - 100.0%
(identified cost $4,457) | | | | 5,204 |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | 2 |
| | | | |
| | |
| Net Assets - 100.0% | | | | 5,206 |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Statements of Assets and Liabilities — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Amounts in thousands | | Conservative Strategy
Fund | | | Moderate Strategy
Fund | | | Balanced Strategy
Fund | | | Growth Strategy
Fund | |
| | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | |
Investments, at identified cost | | $ | 572,955 | | | $ | 1,028,957 | | | $ | 4,520,633 | | | $ | 3,239,258 | |
Investments, at market | | | 606,868 | | | | 1,052,602 | | | | 4,508,889 | | | | 3,082,896 | |
Receivables: | | | | | | | | | | | | | | | | |
Investments sold | | | — | | | | 1,577 | | | | 2,218 | | | | 2,633 | |
Fund shares sold | | | 2,136 | | | | 1,418 | | | | 9,679 | | | | 4,213 | |
From affiliates | | | — | | | | — | | | | — | | | | — | |
Prepaid expenses | | | 43 | | | | 47 | | | | 94 | | | | 91 | |
| | | | | | | | | | | | | | | | |
Total assets | | | 609,047 | | | | 1,055,644 | | | | 4,520,880 | | | | 3,089,833 | |
| | | | | | | | | | | | | | | | |
| | | | |
Liabilities | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | |
Investments purchased | | | 256 | | | | — | | | | — | | | | — | |
Fund shares redeemed | | | 1,151 | | | | 2,121 | | | | 6,308 | | | | 5,851 | |
Accrued fees to affiliates | | | 357 | | | | 638 | | | | 2,860 | | | | 1,921 | |
Other accrued expenses | | | 35 | | | | 63 | | | | 186 | | | | 66 | |
| | | | | | | | | | | | | | | | |
Total liabilities | | | 1,799 | | | | 2,822 | | | | 9,354 | | | | 7,838 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net Assets | | $ | 607,248 | | | $ | 1,052,822 | | | $ | 4,511,526 | | | $ | 3,081,995 | |
| | | | | | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income | | $ | (389 | ) | | $ | (680 | ) | | $ | (2,986 | ) | | $ | (2,035 | ) |
Accumulated net realized gain (loss) | | | (14,958 | ) | | | (49,300 | ) | | | (363,261 | ) | | | (309,009 | ) |
Unrealized appreciation (depreciation) on investments | | | 33,913 | | | | 23,645 | | | | (11,744 | ) | | | (156,362 | ) |
Shares of beneficial interest | | | 587 | | | | 1,025 | | | | 4,521 | | | | 3,291 | |
Additional paid-in capital | | | 588,095 | | | | 1,078,132 | | | | 4,884,996 | | | | 3,546,110 | |
| | | | | | | | | | | | | | | | |
| Net Assets | | $ | 607,248 | | | $ | 1,052,822 | | | $ | 4,511,526 | | | $ | 3,081,995 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share: | | | | | | | | | | | | | | | | |
Net asset value per share: Class A* | | $ | 10.32 | | | $ | 10.27 | | | $ | 9.98 | | | $ | 9.37 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 10.95 | | | $ | 10.90 | | | $ | 10.59 | | | $ | 9.94 | |
Class A — Net assets | | $ | 84,390,936 | | | $ | 203,075,278 | | | $ | 1,102,794,078 | | | $ | 809,163,863 | |
Class A — Shares outstanding ($.01 par value) | | | 8,178,825 | | | | 19,776,794 | | | | 110,518,958 | | | | 86,366,003 | |
Net asset value per share: Class C* | | $ | 10.27 | | | $ | 10.21 | | | $ | 9.91 | | | $ | 9.28 | |
Class C — Net assets | | $ | 144,100,627 | | | $ | 255,578,877 | | | $ | 1,295,781,877 | | | $ | 819,239,467 | |
Class C — Shares outstanding ($.01 par value) | | | 14,036,610 | | | | 25,033,681 | | | | 130,746,084 | | | | 88,266,878 | |
Net asset value per share: Class E* | | $ | 10.35 | | | $ | 10.27 | | | $ | 10.00 | | | $ | 9.39 | |
Class E — Net assets | | $ | 85,963,282 | | | $ | 162,855,706 | | | $ | 555,628,003 | | | $ | 425,723,544 | |
Class E — Shares outstanding ($.01 par value) | | | 8,306,279 | | | | 15,851,707 | | | | 55,545,235 | | | | 45,360,114 | |
Net asset value per share: Class R1* | | $ | 10.38 | | | $ | 10.31 | | | $ | 10.06 | | | $ | 9.44 | |
Class R1 — Net assets | | $ | 10,101,574 | | | $ | 18,191,256 | | | $ | 74,035,741 | | | $ | 27,694,107 | |
Class R1 — Shares outstanding ($.01 par value) | | | 973,065 | | | | 1,764,504 | | | | 7,362,467 | | | | 2,933,782 | |
Net asset value per share: Class R2* | | $ | 10.34 | | | $ | 10.28 | | | $ | 10.00 | | | $ | 9.39 | |
Class R2 — Net assets | | $ | 5,448,209 | | | $ | 6,514,689 | | | $ | 29,569,280 | | | $ | 20,142,737 | |
Class R2 — Shares outstanding ($.01 par value) | | | 526,882 | | | | 633,702 | | | | 2,956,948 | | | | 2,144,869 | |
Net asset value per share: Class R3* | | $ | 10.38 | | | $ | 10.31 | | | $ | 10.00 | | | $ | 9.41 | |
Class R3 — Net assets | | $ | 190,259,476 | | | $ | 282,469,336 | | | $ | 871,788,957 | | | $ | 642,776,267 | |
Class R3 — Shares outstanding ($.01 par value) | | | 18,325,315 | | | | 27,404,952 | | | | 87,140,096 | | | | 68,333,300 | |
Net asset value per share: Class S* | | $ | 10.39 | | | $ | 10.31 | | | $ | 10.06 | | | $ | 9.44 | |
Class S — Net assets | | $ | 86,984,181 | | | $ | 124,136,844 | | | $ | 581,928,020 | | | $ | 337,255,277 | |
Class S — Shares outstanding ($.01 par value) | | | 8,375,863 | | | | 12,043,381 | | | | 57,852,430 | | | | 35,709,873 | |
| | | | | | | | | | | | | | | | |
* 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.
| | |
| 42 | | Statements of Assets and Liabilities |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Growth
Strategy Fund | | | 2010 Strategy
Fund | | | 2015 Strategy
Fund | | | 2020 Strategy
Fund | | | 2025 Strategy
Fund | | | 2030 Strategy
Fund | | | 2035 Strategy
Fund | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,551,751 | | | $ | 74,885 | | | $ | 21,640 | | | $ | 204,208 | | | $ | 23,155 | | | $ | 170,274 | | | $ | 13,143 | |
| | 1,435,734 | | | | 80,852 | | | | 24,273 | | | | 219,479 | | | | 26,141 | | | | 179,367 | | | | 15,023 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 2,713 | | | | 114 | | | | 41 | | | | 429 | | | | 132 | | | | 406 | | | | 70 | |
| | — | | | | 14 | | | | 7 | | | | 11 | | | | 7 | | | | 11 | | | | 7 | |
| | 63 | | | | 11 | | | | 29 | | | | 12 | | | | 21 | | | | 12 | | | | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,438,510 | | | | 80,991 | | | | 24,350 | | | | 219,931 | | | | 26,301 | | | | 179,796 | | | | 15,120 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 483 | | | | 40 | | | | 41 | | | | 387 | | | | 126 | | | | 337 | | | | 71 | |
| | 1,769 | | | | 73 | | | | — | | | | 38 | | | | 6 | | | | 65 | | | | — | |
| | 946 | | | | 17 | | | | 5 | | | | 46 | | | | 5 | | | | 38 | | | | 3 | |
| | 48 | | | | 27 | | | | 22 | | | | 43 | | | | 22 | | | | 42 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3,246 | | | | 157 | | | | 68 | | | | 514 | | | | 159 | | | | 482 | | | | 96 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,435,264 | | | $ | 80,834 | | | $ | 24,282 | | | $ | 219,417 | | | $ | 26,142 | | | $ | 179,314 | | | $ | 15,024 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | (965 | ) | | $ | (14 | ) | | $ | (6 | ) | | $ | (30 | ) | | $ | (7 | ) | | $ | (37 | ) | | $ | (5 | ) |
| | (235,067 | ) | | | (2,687 | ) | | | 7 | | | | (8,139 | ) | | | (181 | ) | | | (8,046 | ) | | | (224 | ) |
| | (116,017 | ) | | | 5,967 | | | | 2,633 | | | | 15,271 | | | | 2,986 | | | | 9,093 | | | | 1,880 | |
| | 1,685 | | | | 79 | | | | 25 | | | | 214 | | | | 29 | | | | 187 | | | | 17 | |
| | 1,785,628 | | | | 77,489 | | | | 21,623 | | | | 212,101 | | | | 23,315 | | | | 178,117 | | | | 13,356 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,435,264 | | | $ | 80,834 | | | $ | 24,282 | | | $ | 219,417 | | | $ | 26,142 | | | $ | 179,314 | | | $ | 15,024 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.78 | | | $ | 10.28 | | | $ | — | | | $ | 10.26 | | | $ | — | | | $ | 9.63 | | | $ | — | |
$ | 9.32 | | | $ | 10.91 | | | $ | — | | | $ | 10.89 | | | $ | — | | | $ | 10.22 | | | $ | — | |
| $ | 270,794,722 | | | $ | 1,165,939 | | | $ | — | | | $ | 2,427,251 | | | $ | — | | | $ | 1,748,586 | | | $ | — | |
| | 30,837,318 | | | | 113,461 | | | | — | | | | 236,481 | | | | — | | | | 181,649 | | | | — | |
| $ | 8.16 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| $ | 416,552,029 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | 51,025,633 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| $ | 8.60 | | | $ | 10.29 | | | $ | — | | | $ | 10.26 | | | $ | — | | | $ | 9.58 | | | $ | — | |
| $ | 182,656,828 | | | $ | 5,603,193 | | | $ | — | | | $ | 14,544,514 | | | $ | — | | | $ | 13,458,924 | | | $ | — | |
| | 21,239,475 | | | | 544,389 | | | | — | | | | 1,417,041 | | | | — | | | | 1,404,519 | | | | — | |
| $ | 8.76 | | | $ | 10.30 | | | $ | 9.68 | | | $ | 10.27 | | | $ | 9.17 | | | $ | 9.59 | | | $ | 8.87 | |
| $ | 17,149,959 | | | $ | 18,092,050 | | | $ | 8,892,383 | | | $ | 52,168,053 | | | $ | 9,411,698 | | | $ | 37,440,418 | | | $ | 4,747,948 | |
| | 1,957,424 | | | | 1,756,464 | | | | 918,884 | | | | 5,079,807 | | | | 1,025,870 | | | | 3,905,449 | | | | 535,214 | |
| $ | 8.61 | | | $ | 10.29 | | | $ | 9.67 | | | $ | 10.25 | | | $ | 9.17 | | | $ | 9.57 | | | $ | 8.86 | |
| $ | 21,823,010 | | | $ | 15,598,788 | | | $ | 5,986,381 | | | $ | 38,896,480 | | | $ | 7,197,448 | | | $ | 35,688,444 | | | $ | 4,909,466 | |
| | 2,535,914 | | | | 1,515,814 | | | | 619,266 | | | | 3,793,824 | | | | 785,253 | | | | 3,730,230 | | | | 554,142 | |
| $ | 8.55 | | | $ | 10.27 | | | $ | 9.66 | | | $ | 10.23 | | | $ | 9.15 | | | $ | 9.57 | | | $ | 8.85 | |
| $ | 313,813,912 | | | $ | 33,381,733 | | | $ | 9,402,907 | | | $ | 90,786,235 | | | $ | 9,533,085 | | | $ | 71,194,510 | | | $ | 5,367,078 | |
| | 36,684,815 | | | | 3,250,252 | | | | 973,384 | | | | 8,872,077 | | | | 1,042,413 | | | | 7,442,756 | | | | 606,257 | |
| $ | 8.77 | | | $ | 10.31 | | | $ | — | | | $ | 10.27 | | | $ | — | | | $ | 9.59 | | | $ | — | |
| $ | 212,473,914 | | | $ | 6,991,876 | | | $ | — | | | $ | 20,594,582 | | | $ | — | | | $ | 19,782,976 | | | $ | — | |
| | 24,238,221 | | | | 678,463 | | | | — | | | | 2,005,412 | | | | — | | | | 2,063,635 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Assets and Liabilities | | 43 |
Russell Investment Company
LifePoints® Funds
Statements of Assets and Liabilities, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Amounts in thousands | | 2040 Strategy
Fund | | | 2045 Strategy
Fund | | | 2050 Strategy
Fund | | | In Retirement
Fund | |
| | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | |
Investments, at identified cost | | $ | 129,330 | | | $ | 7,454 | | | $ | 13,495 | | | $ | 4,457 | |
Investments, at market | | | 138,027 | | | | 8,519 | | | | 17,049 | | | | 5,204 | |
Receivables: | | | | | | | | | | | | | | | | |
Investments sold | | | — | | | | — | | | | — | | | | — | |
Fund shares sold | | | 394 | | | | 99 | | | | 196 | | | | 3 | |
From affiliates | | | 12 | | | | 7 | | | | 7 | | | | 8 | |
Prepaid expenses | | | 11 | | | | 19 | | | | 19 | | | | 18 | |
| | | | | | | | | | | | | | | | |
Total assets | | | 138,444 | | | | 8,644 | | | | 17,271 | | | | 5,233 | |
| | | | | | | | | | | | | | | | |
| | | | |
Liabilities | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | |
Investments purchased | | | 340 | | | | 96 | | | | 194 | | | | 2 | |
Fund shares redeemed | | | 46 | | | | 2 | | | | 2 | | | | 2 | |
Accrued fees to affiliates | | | 29 | | | | 2 | | | | 4 | | | | 1 | |
Other accrued expenses | | | 36 | | | | 22 | | | | 22 | | | | 22 | |
| | | | | | | | | | | | | | | | |
Total liabilities | | | 451 | | | | 122 | | | | 222 | | | | 27 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net Assets | | $ | 137,993 | | | $ | 8,522 | | | $ | 17,049 | | | $ | 5,206 | |
| | | | | | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income | | $ | (27 | ) | | $ | (3 | ) | | $ | (6 | ) | | $ | (3 | ) |
Accumulated net realized gain (loss) | | | (5,463 | ) | | | (170 | ) | | | (106 | ) | | | — | |
Unrealized appreciation (depreciation) on investments | | | 8,697 | | | | 1,065 | | | | 3,554 | | | | 747 | |
Shares of beneficial interest | | | 143 | | | | 10 | | | | 19 | | | | 5 | |
Additional paid-in capital | | | 134,643 | | | | 7,620 | | | | 13,588 | | | | 4,457 | |
| | | | | | | | | | | | | | | | |
| Net Assets | | $ | 137,993 | | | $ | 8,522 | | | $ | 17,049 | | | $ | 5,206 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share: | | | | | | | | | | | | | | | | |
Net asset value per share: Class A* | | $ | 9.64 | | | $ | — | | | $ | — | | | $ | — | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 10.23 | | | $ | — | | | $ | — | | | $ | — | |
Class A — Net assets | | $ | 938,498 | | | $ | — | | | $ | — | | | $ | — | |
Class A — Shares outstanding ($.01 par value) | | | 97,381 | | | | — | | | | — | | | | — | |
Net asset value per share: Class C* | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Class C — Net assets | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Class C — Shares outstanding ($.01 par value) | | | — | | | | — | | | | — | | | | — | |
Net asset value per share: Class E* | | $ | 9.64 | | | $ | — | | | $ | — | | | $ | — | |
Class E — Net assets | | $ | 15,295,587 | | | $ | — | | | $ | — | | | $ | — | |
Class E — Shares outstanding ($.01 par value) | | | 1,586,551 | | | | — | | | | — | | | | — | |
Net asset value per share: Class R1* | | $ | 9.65 | | | $ | 8.87 | | | $ | 8.96 | | | $ | 9.91 | |
Class R1 — Net assets | | $ | 24,817,267 | | | $ | 1,966,410 | | | $ | 1,307,379 | | | $ | 263,824 | |
Class R1 — Shares outstanding ($.01 par value) | | | 2,572,140 | | | | 221,631 | | | | 145,856 | | | | 26,632 | |
Net asset value per share: Class R2* | | $ | 9.64 | | | $ | 8.86 | | | $ | 8.95 | | | $ | 9.91 | |
Class R2 — Net assets | | $ | 28,763,168 | | | $ | 5,027,485 | | | $ | 13,072,368 | | | $ | 3,432,349 | |
Class R2 — Shares outstanding ($.01 par value) | | | 2,985,153 | | | | 567,321 | | | | 1,459,944 | | | | 346,527 | |
Net asset value per share: Class R3* | | $ | 9.62 | | | $ | 8.85 | | | $ | 8.95 | | | $ | 9.89 | |
Class R3 — Net assets | | $ | 52,206,194 | | | $ | 1,527,726 | | | $ | 2,669,547 | | | $ | 1,509,702 | |
Class R3 — Shares outstanding ($.01 par value) | | | 5,429,644 | | | | 172,607 | | | | 298,225 | | | | 152,663 | |
Net asset value per share: Class S* | | $ | 9.65 | | | $ | — | | | $ | — | | | $ | — | |
Class S — Net assets | | $ | 15,971,976 | | | $ | — | | | $ | — | | | $ | — | |
Class S — Shares outstanding ($.01 par value) | | | 1,654,990 | | | | — | | | | — | | | | — | |
| | | | | |
* 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.
| | |
| 44 | | Statements of Assets and Liabilities |
(This page intentionally left blank)
Russell Investment Company
LifePoints® Funds
Statements of Operations — For the Period Ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Amounts in thousands | | Conservative Strategy
Fund | | | Moderate Strategy
Fund | | | Balanced Strategy
Fund | | | Growth Strategy
Fund | |
| | | | | | | | | | | | | | | | |
Investment Income | | | | | | | | | | | | | | | | |
Income distributions from Underlying Funds | | $ | 10,894 | | | $ | 19,435 | | | $ | 78,729 | | | $ | 47,222 | |
| | | | | | | | | | | | | | | | |
| | | | |
Expenses | | | | | | | | | | | | | | | | |
Advisory fees | | | 559 | | | | 1,003 | | | | 4,318 | | | | 2,961 | |
Administrative fees | | | 140 | | | | 251 | | | | 1,079 | | | | 740 | |
Custodian fees | | | 14 | | | | 14 | | | | 15 | | | | 15 | |
Distribution fees - Class A | | | 97 | | | | 239 | | | | 1,328 | | | | 970 | |
Distribution fees - Class C | | | 483 | | | | 892 | | | | 4,641 | | | | 2,966 | |
Distribution fees - Class R3 | | | 225 | | | | 344 | | | | 1,054 | | | | 776 | |
Transfer agent fees - Class A | | | 70 | | | | 172 | | | | 957 | | | | 699 | |
Transfer agent fees - Class C | | | 116 | | | | 214 | | | | 1,114 | | | | 712 | |
Transfer agent fees - Class E | | | 73 | | | | 140 | | | | 477 | | | | 366 | |
Transfer agent fees - Class R1 | | | 8 | | | | 14 | | | | 59 | | | | 24 | |
Transfer agent fees - Class R2 | | | 5 | | | | 6 | | | | 25 | | | | 16 | |
Transfer agent fees - Class R3 | | | 162 | | | | 248 | | | | 759 | | | | 560 | |
Transfer agent fees - Class S | | | 69 | | | | 109 | | | | 495 | | | | 288 | |
Professional fees | | | 25 | | | | 31 | | | | 82 | | | | 63 | |
Registration fees | | | 56 | | | | 64 | | | | 91 | | | | 79 | |
Shareholder servicing fees - Class C | | | 161 | | | | 297 | | | | 1,547 | | | | 989 | |
Shareholder servicing fees - Class E | | | 102 | | | | 194 | | | | 662 | | | | 509 | |
Shareholder servicing fees - Class R2 | | | 7 | | | | 8 | | | | 35 | | | | 23 | |
Shareholder servicing fees - Class R3 | | | 225 | | | | 344 | | | | 1,054 | | | | 776 | |
Trustees’ fees | | | 6 | | | | 11 | | | | 47 | | | | 32 | |
Printing fees | | | 16 | | | | 32 | | | | 173 | | | | 160 | |
Miscellaneous | | | 5 | | | | 9 | | | | 31 | | | | 19 | |
| | | | | | | | | | | | | | | | |
Expenses before reductions | | | 2,624 | | | | 4,636 | | | | 20,043 | | | | 13,743 | |
Expense reductions | | | (539 | ) | | | (911 | ) | | | (3,668 | ) | | | (2,583 | ) |
| | | | | | | | | | | | | | | | |
Net expenses | | | 2,085 | | | | 3,725 | | | | 16,375 | | | | 11,160 | |
| | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 8,809 | | | | 15,710 | | | | 62,354 | | | | 36,062 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | (2,043 | ) | | | (12,211 | ) | | | (101,345 | ) | | | (118,490 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 32,500 | | | | 85,791 | | | | 490,892 | | | | 432,905 | |
| | | | | | | | | | | | | | | | |
Net realized and unrealized gain (loss) | | | 30,457 | | | | 73,580 | | | | 389,547 | | | | 314,415 | |
| | | | | | | | | | | | | | | | |
| Net Increase (Decrease) in Net Assets from Operations | | $ | 39,266 | | | $ | 89,290 | | | $ | 451,901 | | | $ | 350,477 | |
| | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 46 | | Statements of Operations |
| | | | | | | | | | | | | | | | | | | | | | |
Equity Growth
Strategy Fund | | | 2010 Strategy
Fund | | | 2015 Strategy
Fund | | | 2020 Strategy
Fund | | | 2025 Strategy
Fund | | | 2030 Strategy
Fund | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 20,124 | | | $ | 1,526 | | | $ | 357 | | | $ | 3,718 | | | $ | 345 | | | $ | 2,449 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,394 | | | | 77 | | | | 19 | | | | 198 | | | | 20 | | | | 161 | |
| | 348 | | | | 19 | | | | 5 | | | | 50 | | | | 5 | | | | 40 | |
| | 15 | | | | 14 | | | | 10 | | | | 13 | | | | 10 | | | | 13 | |
| | 329 | | | | 1 | | | | — | | | | 2 | | | | — | | | | 2 | |
| | 1,516 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 383 | | | | 38 | | | | 9 | | | | 100 | | | | 8 | | | | 78 | |
| | 237 | | | | 1 | | | | — | | | | 1 | | | | — | | | | 2 | |
| | 364 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 160 | | | | 5 | | | | — | | | | 12 | | | | — | | | | 11 | |
| | 15 | | | | 16 | | | | 7 | | | | 44 | | | | 7 | | | | 32 | |
| | 19 | | | | 13 | | | | 4 | | | | 30 | | | | 5 | | | | 27 | |
| | 276 | | | | 28 | | | | 7 | | | | 74 | | | | 6 | | | | 57 | |
| | 183 | | | | 7 | | | | — | | | | 18 | | | | — | | | | 16 | |
| | 36 | | | | 16 | | | | 15 | | | | 16 | | | | 15 | | | | 15 | |
| | 65 | | | | 39 | | | | 18 | | | | 41 | | | | 18 | | | | 41 | |
| | 505 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 222 | | | | 7 | | | | — | | | | 15 | | | | — | | | | 14 | |
| | 27 | | | | 17 | | | | 6 | | | | 41 | | | | 8 | | | | 37 | |
| | 383 | | | | 38 | | | | 9 | | | | 100 | | | | 8 | | | | 78 | |
| | 15 | | | | 1 | | | | — | | | | 2 | | | | — | | | | 2 | |
| | 86 | | | | 2 | | | | — | | | | 3 | | | | — | | | | 3 | |
| | 12 | | | | 2 | | | | 2 | | | | 9 | | | | 2 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 6,590 | | | | 341 | | | | 111 | | | | 769 | | | | 112 | | | | 640 | |
| | (1,271 | ) | | | (240 | ) | | | (87 | ) | | | (511 | ) | | | (88 | ) | | | (431 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 5,319 | | | | 101 | | | | 24 | | | | 258 | | | | 24 | | | | 209 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 14,805 | | | | 1,425 | | | | 333 | | | | 3,460 | | | | 321 | | | | 2,240 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (70,881 | ) | | | (1,009 | ) | | | 130 | | | | (1,230 | ) | | | 30 | | | | (3,050 | ) |
| | | | | |
| | 236,587 | | | | 6,158 | | | | 1,335 | | | | 17,945 | | | | 1,782 | | | | 20,740 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 165,706 | | | | 5,149 | | | | 1,465 | | | | 16,715 | | | | 1,812 | | | | 17,690 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| $ | 180,511 | | | $ | 6,574 | | | $ | 1,798 | | | $ | 20,175 | | | $ | 2,133 | | | $ | 19,930 | |
| | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Operations | | 47 |
Russell Investment Company
LifePoints® Funds
Statements of Operations, continued — For the Period Ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| Amounts in thousands | | 2035 Strategy
Fund | | | 2040 Strategy
Fund | | | 2045 Strategy
Fund | | | 2050 Strategy
Fund | | | In Retirement
Fund | |
| | | | | | | | | | | | | | | | | | | | |
Investment Income | | | | | | | | | | | | | | | | | | | | |
Income distributions from Underlying Funds | | $ | 169 | | | $ | 1,872 | | | $ | 96 | | | $ | 202 | | | $ | 84 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | | 11 | | | | 124 | | | | 7 | | | | 14 | | | | 5 | |
Administrative fees | | | 3 | | | | 31 | | | | 2 | | | | 4 | | | | 1 | |
Custodian fees | | | 10 | | | | 12 | | | | 10 | | | | 9 | | | | 9 | |
Distribution fees - Class A | | | — | | | | 1 | | | | — | | | | — | | | | — | |
Distribution fees - Class C | | | — | | | | — | | | | — | | | | — | | | | — | |
Distribution fees - Class R3 | | | 5 | | | | 59 | | | | 1 | | | | 2 | | | | 1 | |
Transfer agent fees - Class A | | | — | | | | 1 | | | | — | | | | — | | | | — | |
Transfer agent fees - Class C | | | — | | | | — | | | | — | | | | — | | | | — | |
Transfer agent fees - Class E | | | — | | | | 12 | | | | — | | | | — | | | | — | |
Transfer agent fees - Class R1 | | | 3 | | | | 21 | | | | 1 | | | | 1 | | | | — | |
Transfer agent fees - Class R2 | | | 3 | | | | 23 | | | | 3 | | | | 10 | | | | 3 | |
Transfer agent fees - Class R3 | | | 4 | | | | 42 | | | | 2 | | | | 2 | | | | 1 | |
Transfer agent fees - Class S | | | — | | | | 13 | | | | — | | | | — | | | | — | |
Professional fees | | | 15 | | | | 15 | | | | 15 | | | | 15 | | | | 16 | |
Registration fees | | | 18 | | | | 39 | | | | 18 | | | | 18 | | | | 18 | |
Shareholder servicing fees - Class C | | | — | | | | — | | | | — | | | | — | | | | — | |
Shareholder servicing fees - Class E | | | — | | | | 15 | | | | — | | | | — | | | | — | |
Shareholder servicing fees - Class R2 | | | 5 | | | | 30 | | | | 5 | | | | 14 | | | | 4 | |
Shareholder servicing fees - Class R3 | | | 4 | | | | 59 | | | | 1 | | | | 3 | | | | 2 | |
Trustees’ fees | | | — | | | | 1 | | | | — | | | | — | | | | — | |
Printing fees | | | — | | | | 2 | | | | — | | | | — | | | | — | |
Miscellaneous | | | 2 | | | | 9 | | | | 1 | | | | 2 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | | |
Expenses before reductions | | | 83 | | | | 509 | | | | 66 | | | | 94 | | | | 62 | |
Expense reductions | | | (69 | ) | | | (345 | ) | | | (59 | ) | | | (75 | ) | | | (55 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net expenses | | | 14 | | | | 164 | | | | 7 | | | | 19 | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 155 | | | | 1,708 | | | | 89 | | | | 183 | | | | 77 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | (9 | ) | | | (1,950 | ) | | | (96 | ) | | | 8 | | | | 26 | |
Net change in unrealized appreciation (depreciation) on investments | | | 1,127 | | | | 15,332 | | | | 784 | | | | 1,539 | | | | 272 | |
| | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain (loss) | | | 1,118 | | | | 13,382 | | | | 688 | | | | 1,547 | | | | 298 | |
| | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 1,273 | | | $ | 15,090 | | | $ | 777 | | | $ | 1,730 | | | $ | 375 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 48 | | Statements of Operations |
(This page intentionally left blank)
Russell Investment Company
LifePoints® Funds
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | | Conservative Strategy
Fund | | | Moderate Strategy
Fund | |
| Amounts in thousands | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 8,809 | | | $ | 16,842 | | | $ | 15,710 | | | $ | 26,940 | |
Net realized gain (loss) | | | (2,043 | ) | | | (10,451 | ) | | | (12,211 | ) | | | (29,668 | ) |
Net change in unrealized appreciation (depreciation) | | | 32,500 | | | | 70,123 | | | | 85,791 | | | | 148,528 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | 39,266 | | | | 76,514 | | | | 89,290 | | | | 145,800 | |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | | | | | |
Class A | | | (1,415 | ) | | | (3,008 | ) | | | (3,340 | ) | | | (6,717 | ) |
Class C | | | (1,902 | ) | | | (3,898 | ) | | | (3,406 | ) | | | (6,718 | ) |
Class E | | | (1,440 | ) | | | (3,177 | ) | | | (2,697 | ) | | | (5,872 | ) |
Class R1 | | | (158 | ) | | | (242 | ) | | | (295 | ) | | | (292 | ) |
Class R2 | | | (90 | ) | | | (239 | ) | | | (101 | ) | | | (418 | ) |
Class R3 | | | (3,023 | ) | | | (6,894 | ) | | | (4,534 | ) | | | (9,970 | ) |
Class S | | | (1,423 | ) | | | (2,691 | ) | | | (2,245 | ) | | | (4,278 | ) |
From net realized gain | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (302 | ) | | | — | | | | (2,027 | ) |
Class C | | | — | | | | (482 | ) | | | — | | | | (2,447 | ) |
Class E | | | — | | | | (344 | ) | | | — | | | | (1,792 | ) |
Class R1 | | | — | | | | (17 | ) | | | — | | | | (39 | ) |
Class R2 | | | — | | | | (29 | ) | | | — | | | | (162 | ) |
Class R3 | | | — | | | | (810 | ) | | | — | | | | (3,296 | ) |
Class S | | | — | | | | (239 | ) | | | — | | | | (1,128 | ) |
From return of capital | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class R1 | | | — | | | | — | | | | — | | | | — | |
Class R2 | | | — | | | | — | | | | — | | | | — | |
Class R3 | | | — | | | | — | | | | — | | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net decrease in net assets from distributions | | | (9,451 | ) | | | (22,372 | ) | | | (16,618 | ) | | | (45,156 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Share Transactions | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 53,327 | | | | 42,434 | | | | 10,456 | | | | (5,941 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 83,142 | | | | 96,576 | | | | 83,128 | | | | 94,703 | |
| | | | |
Net Assets | | | | | | | | | | | | | | | | |
Beginning of period | | | 524,106 | | | | 427,530 | | | | 969,694 | | | | 874,991 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 607,248 | | | $ | 524,106 | | | $ | 1,052,822 | | | $ | 969,694 | |
| | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (389 | ) | | $ | 253 | | | $ | (680 | ) | | $ | 228 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 50 | | Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balanced Strategy
Fund | | | Growth Strategy
Fund | | | Equity Growth
Strategy Fund | | | 2010 Strategy
Fund | |
Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 62,354 | | | $ | 83,092 | | | $ | 36,062 | | | $ | 34,289 | | | $ | 14,805 | | | $ | 4,987 | | | $ | 1,425 | | | $ | 2,065 | |
| | (101,345 | ) | | | (200,416 | ) | | | (118,490 | ) | | | (151,140 | ) | | | (70,881 | ) | | | (101,898 | ) | | | (1,009 | ) | | | (1,278 | ) |
| | 490,892 | | | | 718,457 | | | | 432,905 | | | | 505,398 | | | | 236,587 | | | | 264,444 | | | | 6,158 | | | | 10,465 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 451,901 | | | | 601,133 | | | | 350,477 | | | | 388,547 | | | | 180,511 | | | | 167,533 | | | | 6,574 | | | | 11,252 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (17,170 | ) | | | (26,402 | ) | | | (10,699 | ) | | | (11,299 | ) | | | (2,988 | ) | | | (994 | ) | | | (21 | ) | | | (38 | ) |
| | (16,316 | ) | | | (24,251 | ) | | | (8,554 | ) | | | (7,406 | ) | | | (4,356 | ) | | | (1,132 | ) | | | — | | | | — | |
| | (8,493 | ) | | | (13,733 | ) | | | (5,588 | ) | | | (5,987 | ) | | | (2,048 | ) | | | (745 | ) | | | (98 | ) | | | (168 | ) |
| | (1,090 | ) | | | (1,078 | ) | | | (393 | ) | | | (308 | ) | | | (201 | ) | | | (39 | ) | | | (349 | ) | | | (414 | ) |
| | (430 | ) | | | (1,142 | ) | | | (249 | ) | | | (343 | ) | | | (239 | ) | | | (112 | ) | | | (261 | ) | | | (427 | ) |
| | (12,787 | ) | | | (20,935 | ) | | | (7,909 | ) | | | (7,909 | ) | | | (3,407 | ) | | | (1,027 | ) | | | (543 | ) | | | (724 | ) |
| | (9,382 | ) | | | (14,788 | ) | | | (4,705 | ) | | | (5,295 | ) | | | (2,531 | ) | | | (938 | ) | | | (167 | ) | | | (300 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (39,665 | ) | | | — | | | | (49,173 | ) | | | — | | | | (18,822 | ) | | | — | | | | — | |
| | — | | | | (48,357 | ) | | | — | | | | (51,138 | ) | | | — | | | | (30,122 | ) | | | — | | | | — | |
| | — | | | | (20,642 | ) | | | — | | | | (26,142 | ) | | | — | | | | (13,975 | ) | | | — | | | | — | |
| | — | | | | (1,054 | ) | | | — | | | | (993 | ) | | | — | | | | (501 | ) | | | — | | | | — | |
| | — | | | | (1,951 | ) | | | — | | | | (1,662 | ) | | | — | | | | (2,049 | ) | | | — | | | | — | |
| | — | | | | (34,634 | ) | | | — | | | | (40,377 | ) | | | — | | | | (23,124 | ) | | | — | | | | — | |
| | — | | | | (20,335 | ) | | | — | | | | (19,484 | ) | | | — | | | | (16,839 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | (1,089 | ) | | | — | | | | (368 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (1,116 | ) | | | — | | | | (475 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (579 | ) | | | — | | | | (275 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (22 | ) | | | — | | | | (13 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (37 | ) | | | — | | | | (41 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (889 | ) | | | — | | | | (404 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | (435 | ) | | | — | | | | (342 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (65,668 | ) | | | (268,967 | ) | | | (38,097 | ) | | | (231,683 | ) | | | (15,770 | ) | | | (112,337 | ) | | | (1,439 | ) | | | (2,071 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (24,086 | ) | | | (167,337 | ) | | | (72,912 | ) | | | (51,888 | ) | | | (75,731 | ) | | | (31,501 | ) | | | 1,385 | | | | 23,532 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 362,147 | | | | 164,829 | | | | 239,468 | | | | 104,976 | | | | 89,010 | | | | 23,695 | | | | 6,520 | | | | 32,713 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4,149,379 | | | | 3,984,550 | | | | 2,842,527 | | | | 2,737,551 | | | | 1,346,254 | | | | 1,322,559 | | | | 74,314 | | | | 41,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 4,511,526 | | | $ | 4,149,379 | | | $ | 3,081,995 | | | $ | 2,842,527 | | | $ | 1,435,264 | | | $ | 1,346,254 | | | $ | 80,834 | | | $ | 74,314 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | (2,986 | ) | | $ | 328 | | | $ | (2,035 | ) | | $ | — | | | $ | (965 | ) | | $ | — | | | $ | (14 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 51 |
Russell Investment Company
LifePoints® Funds
Statements of Changes in Net Assets, continued
| | | | | | | | | | | | | | | | |
| | | 2015 Strategy
Fund | | | 2020 Strategy
Fund | |
| Amounts in thousands | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 333 | | | $ | 147 | | | $ | 3,460 | | | $ | 3,679 | |
Net realized gain (loss) | | | 130 | | | | (109 | ) | | | (1,230 | ) | | | (5,054 | ) |
Net change in unrealized appreciation (depreciation) | | | 1,335 | | | | 1,471 | | | | 17,945 | | | | 29,446 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | 1,798 | | | | 1,509 | | | | 20,175 | | | | 28,071 | |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | (29 | ) | | | (36 | ) |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | (225 | ) | | | (249 | ) |
Class R1 | | | (138 | ) | | | (33 | ) | | | (934 | ) | | | (803 | ) |
Class R2 | | | (82 | ) | | | (26 | ) | | | (585 | ) | | | (800 | ) |
Class R3 | | | (127 | ) | | | (88 | ) | | | (1,348 | ) | | | (1,335 | ) |
Class S | | | — | | | | — | | | | (380 | ) | | | (456 | ) |
From net realized gain | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class R1 | | | — | | | | — | | | | — | | | | — | |
Class R2 | | | — | | | | — | | | | — | | | | — | |
Class R3 | | | — | | | | — | | | | — | | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
From return of capital | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class R1 | | | — | | | | — | | | | — | | | | — | |
Class R2 | | | — | | | | — | | | | — | | | | — | |
Class R3 | | | — | | | | — | | | | — | | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net decrease in net assets from distributions | | | (347 | ) | | | (147 | ) | | | (3,501 | ) | | | (3,679 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Share Transactions | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 9,986 | | | | 10,756 | | | | 25,281 | | | | 60,063 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 11,437 | | | | 12,118 | | | | 41,955 | | | | 84,455 | |
| | | | |
Net Assets | | | | | | | | | | | | | | | | |
Beginning of period | | | 12,845 | | | | 727 | | | | 177,462 | | | | 93,007 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 24,282 | | | $ | 12,845 | | | $ | 219,417 | | | $ | 177,462 | |
| | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (6 | ) | | $ | 8 | | | $ | (30 | ) | | $ | 11 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 52 | | Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2025 Strategy
Fund | | | 2030 Strategy
Fund | | | 2035 Strategy
Fund | | | 2040 Strategy
Fund | |
Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 321 | | | $ | 79 | | | $ | 2,240 | | | $ | 1,330 | | | $ | 155 | | | $ | 30 | | | $ | 1,708 | | | $ | 964 | |
| | 30 | | | | (116 | ) | | | (3,050 | ) | | | (1,362 | ) | | | (9 | ) | | | (129 | ) | | | (1,950 | ) | | | (743 | ) |
| | 1,782 | | | | 1,401 | | | | 20,740 | | | | 22,536 | | | | 1,127 | | | | 999 | | | | 15,332 | | | | 15,670 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2,133 | | | | 1,364 | | | | 19,930 | | | | 22,504 | | | | 1,273 | | | | 900 | | | | 15,090 | | | | 15,891 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | (26 | ) | | | (19 | ) | | | — | | | | — | | | | (13 | ) | | | (10 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | (171 | ) | | | (113 | ) | | | — | | | | — | | | | (196 | ) | | | (74 | ) |
| | (133 | ) | | | (19 | ) | | | (562 | ) | | | (260 | ) | | | (60 | ) | | | (9 | ) | | | (354 | ) | | | (156 | ) |
| | (97 | ) | | | (21 | ) | | | (429 | ) | | | (332 | ) | | | (54 | ) | | | (8 | ) | | | (348 | ) | | | (266 | ) |
| | (98 | ) | | | (40 | ) | | | (832 | ) | | | (418 | ) | | | (46 | ) | | | (13 | ) | | | (619 | ) | | | (314 | ) |
| | — | | | | — | | | | (274 | ) | | | (185 | ) | | | — | | | | — | | | | (217 | ) | | | (142 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (328 | ) | | | (80 | ) | | | (2,294 | ) | | | (1,327 | ) | | | (160 | ) | | | (30 | ) | | | (1,747 | ) | | | (962 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12,337 | | | | 10,092 | | | | 22,332 | | | | 45,861 | | | | 7,369 | | | | 5,047 | | | | 21,037 | | | | 38,295 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 14,142 | | | | 11,376 | | | | 39,968 | | | | 67,038 | | | | 8,482 | | | | 5,917 | | | | 34,380 | | | | 53,224 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12,000 | | | | 624 | | | | 139,346 | | | | 72,308 | | | | 6,542 | | | | 625 | | | | 103,613 | | | | 50,389 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 26,142 | | | $ | 12,000 | | | $ | 179,314 | | | $ | 139,346 | | | $ | 15,024 | | | $ | 6,542 | | | $ | 137,993 | | | $ | 103,613 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | (7 | ) | | $ | — | | | $ | (37 | ) | | $ | 17 | | | $ | (5 | ) | | $ | — | | | $ | (27 | ) | | $ | 12 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 53 |
Russell Investment Company
LifePoints® Funds
Statements of Changes in Net Assets, continued
| | | | | | | | | | | | | | | | |
| | | 2045 Strategy
Fund | | | 2050 Strategy
Fund | |
| Amounts in thousands | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | | | Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 89 | | | $ | 26 | | | $ | 183 | | | $ | 81 | |
Net realized gain (loss) | | | (96 | ) | | | (49 | ) | | | 8 | | | | (81 | ) |
Net change in unrealized appreciation (depreciation) | | | 784 | | | | 640 | | | | 1,539 | | | | 2,103 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | 777 | | | | 617 | | | | 1,730 | | | | 2,103 | |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class R1 | | | (28 | ) | | | (11 | ) | | | (13 | ) | | | (3 | ) |
Class R2 | | | (52 | ) | | | (12 | ) | | | (151 | ) | | | (73 | ) |
Class R3 | | | (12 | ) | | | (4 | ) | | | (25 | ) | | | (6 | ) |
Class S | | | — | | | | — | | | | — | | | | — | |
From net realized gain | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class R1 | | | — | | | | — | | | | (2 | ) | | | — | |
Class R2 | | | — | | | | — | | | | (25 | ) | | | — | |
Class R3 | | | — | | | | — | | | | (4 | ) | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
From return of capital | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class R1 | | | — | | | | — | | | | — | | | | — | |
Class R2 | | | — | | | | — | | | | — | | | | — | |
Class R3 | | | — | | | | — | | | | — | | | | — | |
Class S | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net decrease in net assets from distributions | | | (92 | ) | | | (27 | ) | | | (220 | ) | | | (82 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Share Transactions | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 2,861 | | | | 3,584 | | | | 4,655 | | | | 8,650 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 3,546 | | | | 4,174 | | | | 6,165 | | | | 10,671 | |
| | | | |
Net Assets | | | | | | | | | | | | | | | | |
Beginning of period | | | 4,976 | | | | 802 | | | | 10,884 | | | | 213 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 8,522 | | | $ | 4,976 | | | $ | 17,049 | | | $ | 10,884 | |
| | | | | | | | | | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (3 | ) | | $ | — | | | $ | (6 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| 54 | | Statements of Changes in Net Assets |
| | | | | | |
In Retirement
Fund | |
Period Ended
April 30, 2010
(Unaudited) | | | Fiscal Year
Ended
October 31, 2009 | |
| | | | | | |
| | | | | | |
| |
| | | | | | |
| $ | 77 | | | $ | 93 | |
| | 26 | | | | (25 | ) |
| | 272 | | | | 531 | |
| | | | | | | |
| | 375 | | | | 599 | |
| | | | | | | |
| |
| | | | | | |
| | | | | | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | (4 | ) | | | (5 | ) |
| | (58 | ) | | | (72 | ) |
| | (18 | ) | | | (16 | ) |
| | — | | | | — | |
| | | | | | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | | | | | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | — | | | | — | |
| | | | | | | |
| | (80 | ) | | | (93 | ) |
| | | | | | | |
| |
| | | | | | |
| | 1,602 | | | | 2,551 | |
| | | | | | | |
| |
| | 1,897 | | | | 3,057 | |
| |
| | | | | | |
| | 3,309 | | | | 252 | |
| | | | | | | |
| $ | 5,206 | | | $ | 3,309 | |
| | | | | | | |
| |
| $ | (3 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 55 |
Russell Investment Company
LifePoints® Funds
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Conservative Strategy Fund | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.79 | | .17 | | .54 | | | .71 | | | (.18 | ) | | — | | | — |
October 31, 2009 | | 8.79 | | .35 | | 1.11 | | | 1.46 | | | (.41 | ) | | (.05 | ) | | — |
October 31, 2008 | | 11.03 | | .52 | | (2.16 | ) | | (1.64 | ) | | (.48 | ) | | (.12 | ) | | — |
October 31, 2007 | | 10.98 | | .42 | | .29 | | | .71 | | | (.42 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.66 | | .34 | | .40 | | | .74 | | | (.35 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.65 | | .24 | | .05 | | | .29 | | | (.24 | ) | | (.04 | ) | | — |
Class C | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.75 | | .13 | | .54 | | | .67 | | | (.15 | ) | | — | | | — |
October 31, 2009 | | 8.75 | | .28 | | 1.12 | | | 1.40 | | | (.35 | ) | | (.05 | ) | | — |
October 31, 2008 | | 10.99 | | .46 | | (2.17 | ) | | (1.71 | ) | | (.41 | ) | | (.12 | ) | | — |
October 31, 2007 | | 10.93 | | .34 | | .30 | | | .64 | | | (.34 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.62 | | .25 | | .39 | | | .64 | | | (.26 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.61 | | .16 | | .05 | | | .21 | | | (.16 | ) | | (.04 | ) | | — |
Class E | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.82 | | .17 | | .54 | | | .71 | | | (.18 | ) | | — | | | — |
October 31, 2009 | | 8.81 | | .35 | | 1.12 | | | 1.47 | | | (.41 | ) | | (.05 | ) | | — |
October 31, 2008 | | 11.06 | | .55 | | (2.20 | ) | | (1.65 | ) | | (.48 | ) | | (.12 | ) | | — |
October 31, 2007 | | 11.00 | | .42 | | .30 | | | .72 | | | (.42 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.68 | | .30 | | .43 | | | .73 | | | (.34 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.66 | | .24 | | .06 | | | .30 | | | (.24 | ) | | (.04 | ) | | — |
Class R1 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.85 | | .17 | | .55 | | | .72 | | | (.19 | ) | | — | | | — |
October 31, 2009 | | 8.83 | | .36 | | 1.15 | | | 1.51 | | | (.44 | ) | | (.05 | ) | | — |
October 31, 2008 | | 11.08 | | .56 | | (2.18 | ) | | (1.62 | ) | | (.51 | ) | | (.12 | ) | | — |
October 31, 2007(13) | | 10.77 | | .40 | | .22 | | | .62 | | | (.31 | ) | | — | | | — |
Class R2 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.81 | | .17 | | .54 | | | .71 | | | (.18 | ) | | — | | | — |
October 31, 2009 | | 8.80 | | .35 | | 1.12 | | | 1.47 | | | (.41 | ) | | (.05 | ) | | — |
October 31, 2008 | | 11.05 | | .50 | | (2.14 | ) | | (1.64 | ) | | (.49 | ) | | (.12 | ) | | — |
October 31, 2007 | | 10.99 | | .40 | | .31 | | | .71 | | | (.41 | ) | | (.24 | ) | | — |
October 31, 2006(4) | | 10.86 | | .33 | | .09 | | | .42 | | | (.29 | ) | | — | | | — |
Class R3(5) | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.85 | | .16 | | .54 | | | .70 | | | (.17 | ) | | — | | | — |
October 31, 2009 | | 8.84 | | .33 | | 1.12 | | | 1.45 | | | (.39 | ) | | (.05 | ) | | — |
October 31, 2008 | | 11.09 | | .52 | | (2.19 | ) | | (1.67 | ) | | (.46 | ) | | (.12 | ) | | — |
October 31, 2007 | | 11.03 | | .39 | | .30 | | | .69 | | | (.39 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.71 | | .31 | | .40 | | | .71 | | | (.32 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.69 | | .21 | | .06 | | | .27 | | | (.21 | ) | | (.04 | ) | | — |
Class S | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.85 | | .18 | | .55 | | | .73 | | | (.19 | ) | | — | | | — |
October 31, 2009 | | 8.84 | | .38 | | 1.11 | | | 1.49 | | | (.43 | ) | | (.05 | ) | | — |
October 31, 2008 | | 11.09 | | .57 | | (2.19 | ) | | (1.62 | ) | | (.51 | ) | | (.12 | ) | | — |
October 31, 2007 | | 11.03 | | .44 | | .31 | | | .75 | | | (.45 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.72 | | .36 | | .39 | | | .75 | | | (.37 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.70 | | .27 | | .05 | | | .32 | | | (.26 | ) | | (.04 | ) | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.32 | | 7.31 | | | 84,391 | | .53 | | .72 | | 1.70 | | 27 |
| (.46 | ) | | 9.79 | | 17.41 | | | 74,240 | | .50 | | .73 | | 3.93 | | 17 |
| (.60 | ) | | 8.79 | | (15.56 | ) | | 55,163 | | .27 | | .66 | | 5.05 | | 86 |
| (.66 | ) | | 11.03 | | 6.76 | | | 52,516 | | .25 | | .65 | | 3.87 | | 79 |
| (.42 | ) | | 10.98 | | 7.04 | | | 46,364 | | .25 | | .65 | | 3.14 | | 16 |
| (.28 | ) | | 10.66 | | 2.74 | | | 40,225 | | .25 | | .62 | | 2.26 | | 9 |
| | | | | | | | | | | | | | | | |
| (.15 | ) | | 10.27 | | 6.91 | | | 144,101 | | 1.28 | | 1.47 | | 1.28 | | 27 |
| (.40 | ) | | 9.75 | | 16.66 | | | 116,776 | | 1.25 | | 1.48 | | 3.16 | | 17 |
| (.53 | ) | | 8.75 | | (16.24 | ) | | 88,276 | | 1.02 | | 1.41 | | 4.50 | | 86 |
| (.58 | ) | | 10.99 | | 6.04 | | | 84,747 | | 1.00 | | 1.40 | | 3.10 | | 79 |
| (.33 | ) | | 10.93 | | 6.16 | | | 80,692 | | 1.00 | | 1.40 | | 2.34 | | 16 |
| (.20 | ) | | 10.62 | | 1.99 | | | 88,226 | | 1.00 | | 1.37 | | 1.47 | | 9 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.35 | | 7.28 | | | 85,963 | | .53 | | .72 | | 1.68 | | 27 |
| (.46 | ) | | 9.82 | | 17.48 | | | 77,702 | | .50 | | .73 | | 3.92 | | 17 |
| (.60 | ) | | 8.81 | | (15.60 | ) | | 66,526 | | .27 | | .66 | | 5.27 | | 86 |
| (.66 | ) | | 11.06 | | 6.84 | | | 83,894 | | .25 | | .65 | | 3.84 | | 79 |
| (.41 | ) | | 11.00 | | 6.96 | | | 80,224 | | .25 | | .65 | | 2.90 | | 16 |
| (.28 | ) | | 10.68 | | 2.81 | | | 183,219 | | .25 | | .62 | | 2.20 | | 9 |
| | | | | | | | | | | | | | | | |
| (.19 | ) | | 10.38 | | 7.38 | | | 10,102 | | .28 | | .47 | | 1.73 | | 27 |
| (.49 | ) | | 9.85 | | 17.85 | | | 7,662 | | .25 | | .48 | | 4.02 | | 17 |
| (.63 | ) | | 8.83 | | (15.36 | ) | | 3,026 | | .02 | | .42 | | 5.44 | | 86 |
| (.31 | ) | | 11.08 | | 5.72 | | | 1,914 | | — | | .40 | | 2.98 | | 79 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.34 | | 7.29 | | | 5,448 | | .53 | | .72 | | 1.66 | | 27 |
| (.46 | ) | | 9.81 | | 17.44 | | | 4,571 | | .50 | | .74 | | 3.97 | | 17 |
| (.61 | ) | | 8.80 | | (15.60 | ) | | 5,701 | | .27 | | .66 | | 4.84 | | 86 |
| (.65 | ) | | 11.05 | | 6.75 | | | 3,156 | | .25 | | .65 | | 3.64 | | 79 |
| (.29 | ) | | 10.99 | | 3.95 | | | 1,466 | | .25 | | .67 | | 2.72 | | 16 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.38 | | 7.15 | | | 190,259 | | .78 | | .97 | | 1.56 | | 27 |
| (.44 | ) | | 9.85 | | 17.13 | | | 175,502 | | .75 | | .98 | | 3.68 | | 17 |
| (.58 | ) | | 8.84 | | (15.78 | ) | | 160,491 | | .52 | | .91 | | 5.03 | | 86 |
| (.63 | ) | | 11.09 | | 6.53 | | | 194,815 | | .50 | | .90 | | 3.59 | | 79 |
| (.39 | ) | | 11.03 | | 6.74 | | | 187,837 | | .50 | | .90 | | 2.85 | | 16 |
| (.25 | ) | | 10.71 | | 2.55 | | | 163,499 | | .50 | | .87 | | 1.97 | | 9 |
| | | | | | | | | | | | | | | | |
| (.19 | ) | | 10.39 | | 7.47 | | | 86,984 | | .28 | | .47 | | 1.75 | | 27 |
| (.48 | ) | | 9.85 | | 17.71 | | | 67,653 | | .25 | | .48 | | 4.18 | | 17 |
| (.63 | ) | | 8.84 | | (15.34 | ) | | 48,347 | | .02 | | .41 | | 5.48 | | 86 |
| (.69 | ) | | 11.09 | | 7.10 | | | 55,999 | | — | | .40 | | 4.02 | | 79 |
| (.44 | ) | | 11.03 | | 7.16 | | | 46,312 | | — | | .40 | | 3.36 | | 16 |
| (.30 | ) | | 10.72 | | 3.06 | | | 44,293 | | — | | .37 | | 2.46 | | 9 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Moderate Strategy Fund |
Class A | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.55 | | .16 | | .73 | | | .89 | | | (.17 | ) | | — | | | — |
October 31, 2009 | | 8.53 | | .28 | | 1.21 | | | 1.49 | | | (.36 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.09 | | .58 | | (3.32 | ) | | (2.74 | ) | | (.53 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.54 | | .42 | | .74 | | | 1.16 | | | (.43 | ) | | (.18 | ) | | — |
October 31, 2006 | | 10.81 | | .29 | | .81 | | | 1.10 | | | (.30 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.50 | | .22 | | .35 | | | .57 | | | (.23 | ) | | (.03 | ) | | — |
Class C | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.50 | | .13 | | .72 | | | .85 | | | (.14 | ) | | — | | | — |
October 31, 2009 | | 8.49 | | .22 | | 1.19 | | | 1.41 | | | (.29 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.04 | | .50 | | (3.31 | ) | | (2.81 | ) | | (.45 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.49 | | .33 | | .73 | | | 1.06 | | | (.33 | ) | | (.18 | ) | | — |
October 31, 2006 | | 10.77 | | .21 | | .80 | | | 1.01 | | | (.22 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.45 | | .14 | | .36 | | | .50 | | | (.15 | ) | | (.03 | ) | | — |
Class E | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.55 | | .16 | | .73 | | | .89 | | | (.17 | ) | | — | | | — |
October 31, 2009 | | 8.54 | | .28 | | 1.20 | | | 1.48 | | | (.36 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.10 | | .59 | | (3.33 | ) | | (2.74 | ) | | (.53 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.55 | | .42 | | .74 | | | 1.16 | | | (.43 | ) | | (.18 | ) | | — |
October 31, 2006 | | 10.82 | | .29 | | .81 | | | 1.10 | | | (.30 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.50 | | .22 | | .36 | | | .58 | | | (.23 | ) | | (.03 | ) | | — |
Class R1 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.59 | | .17 | | .73 | | | .90 | | | (.18 | ) | | — | | | — |
October 31, 2009 | | 8.56 | | .29 | | 1.23 | | | 1.52 | | | (.38 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.14 | | .56 | | (3.30 | ) | | (2.74 | ) | | (.55 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.58 | | .33 | | .87 | | | 1.20 | | | (.46 | ) | | (.18 | ) | | — |
October 31, 2006(11) | | 11.47 | | .11 | | .09 | | | .20 | | | (.09 | ) | | — | | | — |
Class R2 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.56 | | .16 | | .73 | | | .89 | | | (.17 | ) | | — | | | — |
October 31, 2009 | | 8.53 | | .29 | | 1.20 | | | 1.49 | | | (.35 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.09 | | .45 | | (3.19 | ) | | (2.74 | ) | | (.53 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.54 | | .39 | | .76 | | | 1.15 | | | (.42 | ) | | (.18 | ) | | — |
October 31, 2006(4) | | 11.25 | | .25 | | .27 | | | .52 | | | (.23 | ) | | — | | | — |
Class R3(5) | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.59 | | .15 | | .73 | | | .88 | | | (.16 | ) | | — | | | — |
October 31, 2009 | | 8.56 | | .26 | | 1.21 | | | 1.47 | | | (.33 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.13 | | .56 | | (3.34 | ) | | (2.78 | ) | | (.50 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.58 | | .39 | | .73 | | | 1.12 | | | (.39 | ) | | (.18 | ) | | — |
October 31, 2006 | | 10.84 | | .27 | | .81 | | | 1.08 | | | (.27 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.52 | | .20 | | .35 | | | .55 | | | (.20 | ) | | (.03 | ) | | — |
Class S | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.58 | | .18 | | .73 | | | .91 | | | (.18 | ) | | — | | | — |
October 31, 2009 | | 8.56 | | .30 | | 1.21 | | | 1.51 | | | (.38 | ) | | (.11 | ) | | — |
October 31, 2008 | | 12.13 | | .61 | | (3.34 | ) | | (2.73 | ) | | (.55 | ) | | (.29 | ) | | — |
October 31, 2007 | | 11.58 | | .45 | | .74 | | | 1.19 | | | (.46 | ) | | (.18 | ) | | — |
October 31, 2006 | | 10.84 | | .32 | | .82 | | | 1.14 | | | (.33 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.52 | | .25 | | .35 | | | .60 | | | (.25 | ) | | (.03 | ) | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.27 | | 9.42 | | | 203,075 | | .53 | | .71 | | 1.66 | | 28 |
| (.47 | ) | | 9.55 | | 18.43 | | | 182,901 | | .51 | | .72 | | 3.34 | | 17 |
| (.82 | ) | | 8.53 | | (24.05 | ) | | 162,970 | | .27 | | .64 | | 5.36 | | 86 |
| (.61 | ) | | 12.09 | | 10.36 | | | 211,856 | | .25 | | .63 | | 3.56 | | 78 |
| (.37 | ) | | 11.54 | | 10.34 | | | 165,654 | | .25 | | .63 | | 2.63 | | 6 |
| (.26 | ) | | 10.81 | | 5.44 | | | 121,343 | | .25 | | .61 | | 2.03 | | 5 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 10.21 | | 9.03 | | | 255,579 | | 1.28 | | 1.46 | | 1.27 | | 28 |
| (.40 | ) | | 9.50 | | 17.54 | | | 221,669 | | 1.26 | | 1.46 | | 2.59 | | 17 |
| (.74 | ) | | 8.49 | | (24.67 | ) | | 196,167 | | 1.02 | | 1.39 | | 4.65 | | 86 |
| (.51 | ) | | 12.04 | | 9.52 | | | 262,501 | | 1.00 | | 1.38 | | 2.86 | | 78 |
| (.29 | ) | | 11.49 | | 9.51 | | | 252,478 | | 1.00 | | 1.38 | | 1.88 | | 6 |
| (.18 | ) | | 10.77 | | 4.78 | | | 183,445 | | 1.00 | | 1.36 | | 1.31 | | 5 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.27 | | 9.42 | | | 162,856 | | .53 | | .71 | | 1.65 | | 28 |
| (.47 | ) | | 9.55 | | 18.28 | | | 150,712 | | .51 | | .72 | | 3.36 | | 17 |
| (.82 | ) | | 8.54 | | (24.03 | ) | | 144,684 | | .27 | | .64 | | 5.46 | | 86 |
| (.61 | ) | | 12.10 | | 10.34 | | | 208,296 | | .25 | | .63 | | 3.60 | | 78 |
| (.37 | ) | | 11.55 | | 10.32 | | | 181,883 | | .25 | | .63 | | 2.64 | | 6 |
| (.26 | ) | | 10.82 | | 5.52 | | | 164,151 | | .25 | | .61 | | 2.07 | | 5 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.31 | | 9.49 | | | 18,191 | | .28 | | .46 | | 1.73 | | 28 |
| (.49 | ) | | 9.59 | | 18.79 | | | 14,348 | | .26 | | .46 | | 3.28 | | 17 |
| (.84 | ) | | 8.56 | | (23.92 | ) | | 3,047 | | .02 | | .40 | | 5.29 | | 86 |
| (.64 | ) | | 12.14 | | 10.70 | | | 2,104 | | — | | .38 | | 2.74 | | 78 |
| (.09 | ) | | 11.58 | | .96 | | | 215 | | — | | .20 | | .89 | | 6 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.28 | | 9.41 | | | 6,515 | | .53 | | .71 | | 1.62 | | 28 |
| (.46 | ) | | 9.56 | | 18.42 | | | 5,738 | | .51 | | .72 | | 3.51 | | 17 |
| (.82 | ) | | 8.53 | | (24.03 | ) | | 12,817 | | .27 | | .65 | | 4.26 | | 86 |
| (.60 | ) | | 12.09 | | 10.28 | | | 4,068 | | .25 | | .63 | | 3.26 | | 78 |
| (.23 | ) | | 11.54 | | 4.68 | | | 1,654 | | .25 | | .64 | | 2.01 | | 6 |
| | | | | | | | | | | | | | | | |
| (.16 | ) | | 10.31 | | 9.26 | | | 282,469 | | .78 | | .96 | | 1.55 | | 28 |
| (.44 | ) | | 9.59 | | 18.19 | | | 276,878 | | .76 | | .97 | | 3.09 | | 17 |
| (.79 | ) | | 8.56 | | (24.27 | ) | | 265,507 | | .52 | | .89 | | 5.22 | | 86 |
| (.57 | ) | | 12.13 | | 10.02 | | | 394,039 | | .50 | | .88 | | 3.36 | | 78 |
| (.34 | ) | | 11.58 | | 10.13 | | | 364,759 | | .50 | | .88 | | 2.39 | | 6 |
| (.23 | ) | | 10.84 | | 5.25 | | | 309,824 | | .50 | | .86 | | 1.81 | | 5 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.31 | | 9.60 | | | 124,137 | | .28 | | .46 | | 1.80 | | 28 |
| (.49 | ) | | 9.58 | | 18.65 | | | 117,448 | | .26 | | .47 | | 3.54 | | 17 |
| (.84 | ) | | 8.56 | | (23.85 | ) | | 89,799 | | .02 | | .39 | | 5.67 | | 86 |
| (.64 | ) | | 12.13 | | 10.61 | | | 158,313 | | — | | .38 | | 3.86 | | 78 |
| (.40 | ) | | 11.58 | | 10.67 | | | 126,487 | | — | | .38 | | 2.89 | | 6 |
| (.28 | ) | | 10.84 | | 5.76 | | | 113,097 | | — | | .36 | | 2.33 | | 5 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net Investment
Income (Loss)(a)(b) | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital |
Balanced Strategy Fund | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.12 | | .15 | | .86 | | | 1.01 | | | (.15 | ) | | — | | | — |
October 31, 2009 | | 8.35 | | .20 | | 1.17 | | | 1.37 | | | (.24 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.10 | | .57 | | (4.37 | ) | | (3.80 | ) | | (.55 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.18 | | .40 | | 1.18 | | | 1.58 | | | (.42 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.99 | | .25 | | 1.27 | | | 1.52 | | | (.26 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.33 | | .20 | | .71 | | | .91 | | | (.22 | ) | | (.03 | ) | | — |
Class C | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.07 | | .11 | | .86 | | | .97 | | | (.13 | ) | | — | | | — |
October 31, 2009 | | 8.31 | | .14 | | 1.16 | | | 1.30 | | | (.18 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.03 | | .48 | | (4.34 | ) | | (3.86 | ) | | (.46 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.12 | | .30 | | 1.18 | | | 1.48 | | | (.33 | ) | | (.24 | ) | | — |
October 31, 2006 | | 10.93 | | .17 | | 1.27 | | | 1.44 | | | (.18 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.29 | | .13 | | .69 | | | .82 | | | (.15 | ) | | (.03 | ) | | — |
Class E | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.15 | | .15 | | .85 | | | 1.00 | | | (.15 | ) | | — | | | — |
October 31, 2009 | | 8.37 | | .20 | | 1.18 | | | 1.38 | | | (.24 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.12 | | .58 | | (4.38 | ) | | (3.80 | ) | | (.55 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.20 | | .41 | | 1.17 | | | 1.58 | | | (.42 | ) | | (.24 | ) | | — |
October 31, 2006 | | 11.00 | | .26 | | 1.27 | | | 1.53 | | | (.26 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.35 | | .22 | | .68 | | | .90 | | | (.22 | ) | | (.03 | ) | | — |
Class R1 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.19 | | .16 | | .87 | | | 1.03 | | | (.16 | ) | | — | | | — |
October 31, 2009 | | 8.41 | | .21 | | 1.19 | | | 1.40 | | | (.26 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.18 | | .56 | | (4.35 | ) | | (3.79 | ) | | (.58 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.26 | | .30 | | 1.32 | | | 1.62 | | | (.46 | ) | | (.24 | ) | | — |
October 31, 2006(8) | | 11.62 | | .10 | | .73 | | | .83 | | | (.19 | ) | | — | | | — |
Class R2 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.14 | | .14 | | .87 | | | 1.01 | | | (.15 | ) | | — | | | — |
October 31, 2009 | | 8.36 | | .20 | | 1.18 | | | 1.38 | | | (.24 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.12 | | .44 | | (4.25 | ) | | (3.81 | ) | | (.55 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.19 | | .40 | | 1.19 | | | 1.59 | | | (.42 | ) | | (.24 | ) | | — |
October 31, 2006(6) | | 11.76 | | .12 | | .49 | | | .61 | | | (.18 | ) | | — | | | — |
Class R3(5) | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.15 | | .14 | | .85 | | | .99 | | | (.14 | ) | | — | | | — |
October 31, 2009 | | 8.38 | | .18 | | 1.17 | | | 1.35 | | | (.22 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.12 | | .56 | | (4.38 | ) | | (3.82 | ) | | (.52 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.20 | | .38 | | 1.17 | | | 1.55 | | | (.39 | ) | | (.24 | ) | | — |
October 31, 2006 | | 11.01 | | .23 | | 1.26 | | | 1.49 | | | (.23 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.35 | | .19 | | .70 | | | .89 | | | (.20 | ) | | (.03 | ) | | — |
Class S | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.19 | | .16 | | .87 | | | 1.03 | | | (.16 | ) | | — | | | — |
October 31, 2009 | | 8.41 | | .22 | | 1.18 | | | 1.40 | | | (.26 | ) | | (.36 | ) | | — |
October 31, 2008 | | 13.18 | | .60 | | (4.39 | ) | | (3.79 | ) | | (.58 | ) | | (.40 | ) | | — |
October 31, 2007 | | 12.26 | | .45 | | 1.17 | | | 1.62 | | | (.46 | ) | | (.24 | ) | | — |
October 31, 2006 | | 11.05 | | .29 | | 1.28 | | | 1.57 | | | (.29 | ) | | (.07 | ) | | — |
October 31, 2005 | | 10.39 | | .25 | | .69 | | | .94 | | | (.25 | ) | | (.03 | ) | | — |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.15 | ) | | 9.98 | | 11.20 | | | 1,102,794 | | .53 | | .70 | | 1.55 | | 1 |
| (.60 | ) | | 9.12 | | 18.02 | | | 1,018,019 | | .52 | | .70 | | 2.45 | | 11 |
| (.95 | ) | | 8.35 | | (30.88 | ) | | 964,226 | | .27 | | .67 | | 5.12 | | 18 |
| (.66 | ) | | 13.10 | | 13.49 | | | 1,352,284 | | .25 | | .67 | | 3.21 | | 34 |
| (.33 | ) | | 12.18 | | 14.03 | | | 996,628 | | .25 | | .67 | | 2.15 | | 3 |
| (.25 | ) | | 10.99 | | 8.91 | | | 593,609 | | .25 | | .62 | | 1.88 | | 1 |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.91 | | 10.71 | | | 1,295,782 | | 1.28 | | 1.45 | | 1.17 | | 1 |
| (.54 | ) | | 9.07 | | 17.14 | | | 1,188,328 | | 1.27 | | 1.45 | | 1.71 | | 11 |
| (.86 | ) | | 8.31 | | (31.37 | ) | | 1,166,957 | | 1.02 | | 1.42 | | 4.35 | | 18 |
| (.57 | ) | | 13.03 | | 12.60 | | | 1,770,369 | | 1.00 | | 1.42 | | 2.44 | | 34 |
| (.25 | ) | | 12.12 | | 13.29 | | | 1,328,971 | | 1.00 | | 1.42 | | 1.43 | | 3 |
| (.18 | ) | | 10.93 | | 7.96 | | | 964,203 | | 1.00 | | 1.37 | | 1.22 | | 1 |
| | | | | | | | | | | | | | | | |
| (.15 | ) | | 10.00 | | 11.06 | | | 555,628 | | .53 | | .70 | | 1.54 | | 1 |
| (.60 | ) | | 9.15 | | 18.09 | | | 501,582 | | .52 | | .70 | | 2.46 | | 11 |
| (.95 | ) | | 8.37 | | (30.84 | ) | | 489,750 | | .27 | | .67 | | 5.18 | | 18 |
| (.66 | ) | | 13.12 | | 13.47 | | | 760,312 | | .25 | | .67 | | 3.26 | | 34 |
| (.33 | ) | | 12.20 | | 14.09 | | | 615,865 | | .25 | | .67 | | 2.23 | | 3 |
| (.25 | ) | | 11.00 | | 8.77 | | | 506,587 | | .25 | | .62 | | 2.03 | | 1 |
| | | | | | | | | | | | | | | | |
| (.16 | ) | | 10.06 | | 11.34 | | | 74,036 | | .28 | | .45 | | 1.60 | | 1 |
| (.62 | ) | | 9.19 | | 18.31 | | | 57,963 | | .27 | | .45 | | 2.55 | | 11 |
| (.98 | ) | | 8.41 | | (30.66 | ) | | 24,105 | | .02 | | .42 | | 5.06 | | 18 |
| (.70 | ) | | 13.18 | | 13.69 | | | 27,053 | | — | | .42 | | 2.42 | | 34 |
| (.19 | ) | | 12.26 | | 6.60 | | | 4,295 | | — | | .43 | | .80 | | 3 |
| | | | | | | | | | | | | | | | |
| (.15 | ) | | 10.00 | | 11.17 | | | 29,569 | | .53 | | .70 | | 1.49 | | 1 |
| (.60 | ) | | 9.14 | | 18.04 | | | 28,403 | | .52 | | .70 | | 2.54 | | 11 |
| (.95 | ) | | 8.36 | | (30.89 | ) | | 42,341 | | .27 | | .68 | | 4.00 | | 18 |
| (.66 | ) | | 13.12 | | 13.48 | | | 22,546 | | .25 | | .67 | | 3.21 | | 34 |
| (.18 | ) | | 12.19 | | 5.26 | | | 15,035 | | .25 | | .68 | | 1.14 | | 3 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 10.00 | | 10.94 | | | 871,789 | | .78 | | .95 | | 1.43 | | 1 |
| (.58 | ) | | 9.15 | | 17.67 | | | 827,996 | | .77 | | .95 | | 2.21 | | 11 |
| (.92 | ) | | 8.38 | | (30.95 | ) | | 812,715 | | .52 | | .92 | | 4.97 | | 18 |
| (.63 | ) | | 13.12 | | 13.16 | | | 1,307,641 | | .50 | | .92 | | 3.04 | | 34 |
| (.30 | ) | | 12.20 | | 13.72 | | | 1,129,000 | | .50 | | .92 | | 1.97 | | 3 |
| (.23 | ) | | 11.01 | | 8.61 | | | 892,607 | | .50 | | .87 | | 1.75 | | 1 |
| | | | | | | | | | | | | | | | |
| (.16 | ) | | 10.06 | | 11.34 | | | 581,928 | | .28 | | .45 | | 1.67 | | 1 |
| (.62 | ) | | 9.19 | | 18.28 | | | 527,088 | | .27 | | .45 | | 2.70 | | 11 |
| (.98 | ) | | 8.41 | | (30.66 | ) | | 484,456 | | .02 | | .42 | | 5.33 | | 18 |
| (.70 | ) | | 13.18 | | 13.69 | | | 746,007 | | — | | .42 | | 3.59 | | 34 |
| (.36 | ) | | 12.26 | | 14.40 | | | 690,959 | | — | | .42 | | 2.46 | | 3 |
| (.28 | ) | | 11.05 | | 9.10 | | | 518,148 | | — | | .37 | | 2.28 | | 1 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
Growth Strategy Fund | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | �� | 8.43 | | .12 | | .94 | | | 1.06 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 7.97 | | .12 | | 1.04 | | | 1.16 | | | (.12 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.76 | | .52 | | (5.29 | ) | | (4.77 | ) | | (.55 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.47 | | .34 | | 1.61 | | | 1.95 | | | (.37 | ) | | (.29 | ) | | — | |
October 31, 2006 | | 10.90 | | .17 | | 1.65 | | | 1.82 | | | (.19 | ) | | (.06 | ) | | — | |
October 31, 2005 | | 9.95 | | .15 | | .98 | | | 1.13 | | | (.18 | ) | | — | | | — | |
Class C | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.36 | | .08 | | .94 | | | 1.02 | | | (.10 | ) | | — | | | — | |
October 31, 2009 | | 7.92 | | .06 | | 1.04 | | | 1.10 | | | (.08 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.67 | | .44 | | (5.26 | ) | | (4.82 | ) | | (.46 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.39 | | .25 | | 1.59 | | | 1.84 | | | (.27 | ) | | (.29 | ) | | — | |
October 31, 2006 | | 10.84 | | .09 | | 1.62 | | | 1.71 | | | (.10 | ) | | (.06 | ) | | — | |
October 31, 2005 | | 9.89 | | .09 | | .96 | | | 1.05 | | | (.10 | ) | | — | | | — | |
Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.44 | | .12 | | .95 | | | 1.07 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 7.98 | | .12 | | 1.04 | | | 1.16 | | | (.12 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.78 | | .54 | | (5.32 | ) | | (4.78 | ) | | (.55 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.49 | | .36 | | 1.59 | | | 1.95 | | | (.37 | ) | | (.29 | ) | | — | |
October 31, 2006 | | 10.91 | | .19 | | 1.64 | | | 1.83 | | | (.19 | ) | | (.06 | ) | | — | |
October 31, 2005 | | 9.96 | | .17 | | .96 | | | 1.13 | | | (.18 | ) | | — | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.49 | | .13 | | .95 | | | 1.08 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 8.02 | | .13 | | 1.06 | | | 1.19 | | | (.14 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.85 | | .50 | | (5.28 | ) | | (4.78 | ) | | (.58 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.55 | | .21 | | 1.79 | | | 2.00 | | | (.41 | ) | | (.29 | ) | | — | |
October 31, 2006(7) | | 11.76 | | .08 | | .84 | | | .92 | | | (.13 | ) | | — | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.45 | | .12 | | .94 | | | 1.06 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 7.98 | | .12 | | 1.05 | | | 1.17 | | | (.12 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.79 | | .40 | | (5.19 | ) | | (4.79 | ) | | (.55 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.48 | | .34 | | 1.62 | | | 1.96 | | | (.36 | ) | | (.29 | ) | | — | |
October 31, 2006(4) | | 11.86 | | .09 | | .64 | | | .73 | | | (.11 | ) | | — | | | — | |
Class R3(5) | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.46 | | .11 | | .95 | | | 1.06 | | | (.11 | ) | | — | | | — | |
October 31, 2009 | | 8.00 | | .10 | | 1.05 | | | 1.15 | | | (.11 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.81 | | .52 | | (5.34 | ) | | (4.82 | ) | | (.52 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.51 | | .33 | | 1.60 | | | 1.93 | | | (.34 | ) | | (.29 | ) | | — | |
October 31, 2006 | | 10.93 | | .15 | | 1.65 | | | 1.80 | | | (.16 | ) | | (.06 | ) | | — | |
October 31, 2005 | | 9.97 | | .14 | | .97 | | | 1.11 | | | (.15 | ) | | — | | | — | |
Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.49 | | .13 | | .95 | | | 1.08 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 8.02 | | .13 | | 1.06 | | | 1.19 | | | (.14 | ) | | (.57 | ) | | (.01 | ) |
October 31, 2008 | | 13.85 | | .58 | | (5.36 | ) | | (4.78 | ) | | (.58 | ) | | (.47 | ) | | — | |
October 31, 2007 | | 12.55 | | .40 | | 1.60 | | | 2.00 | | | (.41 | ) | | (.29 | ) | | — | |
October 31, 2006 | | 10.97 | | .22 | | 1.64 | | | 1.86 | | | (.22 | ) | | (.06 | ) | | — | |
October 31, 2005 | | 10.00 | | .20 | | .98 | | | 1.18 | | | (.21 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 9.37 | | 12.68 | | | 809,164 | | .53 | | .70 | | 1.32 | | 9 |
| (.70 | ) | | 8.43 | | 16.83 | | | 745,197 | | .52 | | .70 | | 1.57 | | 9 |
| (1.02 | ) | | 7.97 | | (36.98 | ) | | 728,441 | | .28 | | .69 | | 4.66 | | 12 |
| (.66 | ) | | 13.76 | | 16.26 | | | 1,055,684 | | .25 | | .68 | | 2.62 | | 16 |
| (.25 | ) | | 12.47 | | 16.87 | | | 680,892 | | .25 | | .67 | | 1.49 | | 2 |
| (.18 | ) | | 10.90 | | 11.44 | | | 365,024 | | .25 | | .64 | | 1.43 | | 1 |
| | | | | | | | | | | | | | | | |
| (.10 | ) | | 9.28 | | 12.21 | | | 819,239 | | 1.28 | | 1.45 | | .95 | | 9 |
| (.66 | ) | | 8.36 | | 15.94 | | | 762,423 | | 1.27 | | 1.45 | | .82 | | 9 |
| (.93 | ) | | 7.92 | | (37.44 | ) | | 742,998 | | 1.02 | | 1.44 | | 3.91 | | 12 |
| (.56 | ) | | 13.67 | | 15.39 | | | 1,176,448 | | 1.00 | | 1.43 | | 1.93 | | 16 |
| (.16 | ) | | 12.39 | | 15.95 | | | 856,552 | | 1.00 | | 1.42 | | .77 | | 2 |
| (.10 | ) | | 10.84 | | 10.70 | | | 572,129 | | 1.00 | | 1.39 | | .82 | | 1 |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 9.39 | | 12.78 | | | 425,724 | | .53 | | .70 | | 1.31 | | 9 |
| (.70 | ) | | 8.44 | | 16.80 | | | 388,051 | | .52 | | .70 | | 1.57 | | 9 |
| (1.02 | ) | | 7.98 | | (37.01 | ) | | 372,580 | | .27 | | .69 | | 4.80 | | 12 |
| (.66 | ) | | 13.78 | | 16.23 | | | 632,163 | | .25 | | .68 | | 2.81 | | 16 |
| (.25 | ) | | 12.49 | | 16.93 | | | 503,741 | | .25 | | .67 | | 1.58 | | 2 |
| (.18 | ) | | 10.91 | | 11.40 | | | 394,842 | | .25 | | .64 | | 1.63 | | 1 |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.44 | | 12.82 | | | 27,694 | | .28 | | .45 | | 1.43 | | 9 |
| (.72 | ) | | 8.49 | | 17.13 | | | 25,180 | | .27 | | .45 | | 1.72 | | 9 |
| (1.05 | ) | | 8.02 | | (36.86 | ) | | 14,138 | | .03 | | .44 | | 4.46 | | 12 |
| (.70 | ) | | 13.85 | | 16.53 | | | 15,576 | | — | | .43 | | 1.62 | | 16 |
| (.13 | ) | | 12.55 | | 7.41 | | | 1,857 | | — | | .43 | | .62 | | 2 |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 9.39 | | 12.65 | | | 20,143 | | .53 | | .70 | | 1.29 | | 9 |
| (.70 | ) | | 8.45 | | 16.90 | | | 16,477 | | .52 | | .70 | | 1.64 | | 9 |
| (1.02 | ) | | 7.98 | | (37.04 | ) | | 21,959 | | .28 | | .69 | | 3.62 | | 12 |
| (.65 | ) | | 13.79 | | 16.30 | | | 16,800 | | .25 | | .68 | | 2.61 | | 16 |
| (.11 | ) | | 12.48 | | 6.23 | | | 10,647 | | .25 | | .68 | | .71 | | 2 |
| | | | | | | | | | | | | | | | |
| (.11 | ) | | 9.41 | | 12.64 | | | 642,776 | | .78 | | .95 | | 1.20 | | 9 |
| (.69 | ) | | 8.46 | | 16.48 | | | 601,602 | | .77 | | .95 | | 1.32 | | 9 |
| (.99 | ) | | 8.00 | | (37.17 | ) | | 577,865 | | .52 | | .94 | | 4.57 | | 12 |
| (.63 | ) | | 13.81 | | 15.97 | | | 992,589 | | .50 | | .93 | | 2.55 | | 16 |
| (.22 | ) | | 12.51 | | 16.62 | | | 822,822 | | .50 | | .92 | | 1.32 | | 2 |
| (.15 | ) | | 10.93 | | 11.22 | | | 616,939 | | .50 | | .89 | | 1.35 | | 1 |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.44 | | 12.82 | | | 337,255 | | .28 | | .45 | | 1.44 | | 9 |
| (.72 | ) | | 8.49 | | 17.12 | | | 303,597 | | .27 | | .45 | | 1.81 | | 9 |
| (1.05 | ) | | 8.02 | | (36.86 | ) | | 279,570 | | .02 | | .44 | | 5.08 | | 12 |
| (.70 | ) | | 13.85 | | 16.53 | | | 500,465 | | — | | .43 | | 3.08 | | 16 |
| (.28 | ) | | 12.55 | | 17.12 | | | 420,671 | | — | | .42 | | 1.83 | | 2 |
| (.21 | ) | | 10.97 | | 11.83 | | | 308,795 | | — | | .39 | | 1.88 | | 1 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | |
$
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
Equity Growth Strategy Fund | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.80 | | .10 | | | .97 | | | 1.07 | | | (.09 | ) | | — | | | — | |
October 31, 2009 | | 7.46 | | .04 | | | .93 | | | .97 | | | (.03 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 14.27 | | .53 | | | (6.27 | ) | | (5.74 | ) | | (.54 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.55 | | .28 | | | 2.08 | | | 2.36 | | | (.32 | ) | | (.32 | ) | | — | |
October 31, 2006 | | 10.63 | | .10 | | | 2.00 | | | 2.10 | | | (.10 | ) | | (.08 | ) | | — | |
October 31, 2005 | | 9.42 | | .10 | | | 1.22 | | | 1.32 | | | (.11 | ) | | — | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.27 | | .06 | | | .91 | | | .97 | | | (.08 | ) | | — | | | — | |
October 31, 2009 | | 7.03 | | (.01 | ) | | .87 | | | .86 | | | (.02 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 13.54 | | .38 | | | (5.88 | ) | | (5.50 | ) | | (.48 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.00 | | .17 | | | 1.97 | | | 2.14 | | | (.28 | ) | | (.32 | ) | | — | |
October 31, 2006 | | 10.20 | | .01 | | | 1.93 | | | 1.94 | | | (.06 | ) | | (.08 | ) | | — | |
October 31, 2005 | | 9.07 | | .03 | | | 1.17 | | | 1.20 | | | (.07 | ) | | — | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.64 | | .09 | | | .97 | | | 1.06 | | | (.10 | ) | | — | | | — | |
October 31, 2009 | | 7.32 | | .04 | | | .91 | | | .95 | | | (.03 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 14.02 | | .51 | | | (6.14 | ) | | (5.63 | ) | | (.54 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.35 | | .32 | | | 1.99 | | | 2.31 | | | (.32 | ) | | (.32 | ) | | — | |
October 31, 2006 | | 10.46 | | .11 | | | 1.96 | | | 2.07 | | | (.10 | ) | | (.08 | ) | | — | |
October 31, 2005 | | 9.27 | | .11 | | | 1.19 | | | 1.30 | | | (.11 | ) | | — | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.78 | | .11 | | | .97 | | | 1.08 | | | (.10 | ) | | — | | | — | |
October 31, 2009 | | 7.43 | | .05 | | | .94 | | | .99 | | | (.04 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 14.23 | | .54 | | | (6.24 | ) | | (5.70 | ) | | (.57 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.51 | | .15 | | | 2.22 | | | 2.37 | | | (.33 | ) | | (.32 | ) | | — | |
October 31, 2006(7) | | 11.57 | | .04 | | | .95 | | | .99 | | | (.05 | ) | | — | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.64 | | .09 | | | .98 | | | 1.07 | | | (.10 | ) | | — | | | — | |
October 31, 2009 | | 7.32 | | .04 | | | .91 | | | .95 | | | (.03 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 14.03 | | .39 | | | (6.03 | ) | | (5.64 | ) | | (.54 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.35 | | .31 | | | 1.99 | | | 2.30 | | | (.30 | ) | | (.32 | ) | | — | |
October 31, 2006(4) | | 11.60 | | .03 | | | .76 | | | .79 | | | (.04 | ) | | — | | | — | |
Class R3(5) | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.60 | | .09 | | | .95 | | | 1.04 | | | (.09 | ) | | — | | | — | |
October 31, 2009 | | 7.30 | | .03 | | | .90 | | | .93 | | | (.03 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 13.98 | | .49 | | | (6.12 | ) | | (5.63 | ) | | (.52 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.33 | | .27 | | | 2.00 | | | 2.27 | | | (.30 | ) | | (.32 | ) | | — | |
October 31, 2006 | | 10.46 | | .08 | | | 1.95 | | | 2.03 | | | (.08 | ) | | (.08 | ) | | — | |
October 31, 2005 | | 9.27 | | .09 | | | 1.19 | | | 1.28 | | | (.09 | ) | | — | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.78 | | .11 | | | .98 | | | 1.09 | | | (.10 | ) | | — | | | — | |
October 31, 2009 | | 7.43 | | .06 | | | .93 | | | .99 | | | (.04 | ) | | (.59 | ) | | (.01 | ) |
October 31, 2008 | | 14.23 | | .52 | | | (6.22 | ) | | (5.70 | ) | | (.57 | ) | | (.53 | ) | | — | |
October 31, 2007 | | 12.51 | | .35 | | | 2.02 | | | 2.37 | | | (.33 | ) | | (.32 | ) | | — | |
October 31, 2006 | | 10.59 | | .14 | | | 1.99 | | | 2.13 | | | (.13 | ) | | (.08 | ) | | — | |
October 31, 2005 | | 9.37 | | .15 | | | 1.20 | | | 1.35 | | | (.13 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.09 | ) | | 8.78 | | 13.85 | | | 270,794 | | .53 | | .71 | | 1.16 | | | 8 |
| (.63 | ) | | 7.80 | | 15.35 | | | 252,855 | | .52 | | .71 | | .64 | | | 5 |
| (1.07 | ) | | 7.46 | | (42.93 | ) | | 238,694 | | .27 | | .70 | | 4.71 | | | 9 |
| (.64 | ) | | 14.27 | | 19.54 | | | 391,792 | | .25 | | .68 | | 2.12 | | | 18 |
| (.18 | ) | | 12.55 | | 19.99 | | | 211,813 | | .25 | | .68 | | .85 | | | 3 |
| (.11 | ) | | 10.63 | | 14.09 | | | 94,182 | | .25 | | .66 | | .95 | | | 3 |
| | | | | | | | | | | | | | | | | |
| (.08 | ) | | 8.16 | | 13.45 | | | 416,552 | | 1.28 | | 1.46 | | .80 | | | 8 |
| (.62 | ) | | 7.27 | | 14.58 | | | 386,145 | | 1.27 | | 1.46 | | (.12 | ) | | 5 |
| (1.01 | ) | | 7.03 | | (43.44 | ) | | 372,623 | | 1.02 | | 1.45 | | 3.55 | | | 9 |
| (.60 | ) | | 13.54 | | 18.51 | | | 654,858 | | 1.00 | | 1.43 | | 1.39 | | | 18 |
| (.14 | ) | | 12.00 | | 19.16 | | | 438,483 | | 1.00 | | 1.43 | | .07 | | | 3 |
| (.07 | ) | | 10.20 | | 13.29 | | | 284,152 | | 1.00 | | 1.41 | | .31 | | | 3 |
| | | | | | | | | | | | | | | | | |
| (.10 | ) | | 8.60 | | 13.88 | | | 182,657 | | .53 | | .71 | | 1.15 | | | 8 |
| (.63 | ) | | 7.64 | | 15.38 | | | 178,858 | | .52 | | .71 | | .64 | | | 5 |
| (1.07 | ) | | 7.32 | | (42.95 | ) | | 172,463 | | .27 | | .70 | | 4.63 | | | 9 |
| (.64 | ) | | 14.02 | | 19.44 | | | 317,412 | | .25 | | .68 | | 2.45 | | | 18 |
| (.18 | ) | | 12.35 | | 20.02 | | | 241,818 | | .25 | | .68 | | .99 | | | 3 |
| (.11 | ) | | 10.46 | | 14.08 | | | 192,258 | | .25 | | .66 | | 1.13 | | | 3 |
| | | | | | | | | | | | | | | | | |
| (.10 | ) | | 8.76 | | 14.00 | | | 17,150 | | .28 | | .46 | | 1.29 | | | 8 |
| (.64 | ) | | 7.78 | | 15.71 | | | 15,197 | | .27 | | .46 | | .79 | | | 5 |
| (1.10 | ) | | 7.43 | | (42.83 | ) | | 6,152 | | .02 | | .45 | | 5.00 | | | 9 |
| (.65 | ) | | 14.23 | | 19.74 | | | 10,544 | | — | | .43 | | 1.18 | | | 18 |
| (.05 | ) | | 12.51 | | 8.32 | | | 1,391 | | — | | .44 | | .28 | | | 3 |
| | | | | | | | | | | | | | | | | |
| (.10 | ) | | 8.61 | | 14.01 | | | 21,823 | | .53 | | .71 | | 1.13 | | | 8 |
| (.63 | ) | | 7.64 | | 15.37 | | | 23,023 | | .52 | | .71 | | .65 | | | 5 |
| (1.07 | ) | | 7.32 | | (42.99 | ) | | 23,180 | | .27 | | .71 | | 3.56 | | | 9 |
| (.62 | ) | | 14.03 | | 19.40 | | | 25,130 | | .25 | | .68 | | 2.42 | | | 18 |
| (.04 | ) | | 12.35 | | 6.82 | | | 19,094 | | .25 | | .69 | | .26 | | | 3 |
| | | | | | | | | | | | | | | | | |
| (.09 | ) | | 8.55 | | 13.75 | | | 313,814 | | .78 | | .96 | | 1.06 | | | 8 |
| (.63 | ) | | 7.60 | | 15.02 | | | 296,569 | | .77 | | .96 | | .39 | | | 5 |
| (1.05 | ) | | 7.30 | | (43.12 | ) | | 287,938 | | .52 | | .95 | | 4.46 | | | 9 |
| (.62 | ) | | 13.98 | | 19.16 | | | 553,383 | | .50 | | .93 | | 2.12 | | | 18 |
| (.16 | ) | | 12.33 | | 19.61 | | | 432,147 | | .50 | | .93 | | .68 | | | 3 |
| (.09 | ) | | 10.46 | | 13.88 | | | 308,388 | | .50 | | .91 | | .85 | | | 3 |
| | | | | | | | | | | | | | | | | |
| (.10 | ) | | 8.77 | | 14.13 | | | 212,474 | | .28 | | .46 | | 1.29 | | | 8 |
| (.64 | ) | | 7.78 | | 15.69 | | | 193,608 | | .27 | | .46 | | .93 | | | 5 |
| (1.10 | ) | | 7.43 | | (42.87 | ) | | 221,509 | | .02 | | .45 | | 4.65 | | | 9 |
| (.65 | ) | | 14.23 | | 19.74 | | | 319,798 | | — | | .43 | | 2.63 | | | 18 |
| (.21 | ) | | 12.51 | | 20.34 | | | 228,432 | | — | | .43 | | 1.17 | | | 3 |
| (.13 | ) | | 10.59 | | 14.47 | | | 133,943 | | — | | .41 | | 1.42 | | | 3 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | |
$
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
2010 Strategy Fund | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.61 | | .18 | | .67 | | | .85 | | | (.18 | ) | | — | | | — | |
October 31, 2009 | | 8.43 | | .32 | | 1.17 | | | 1.49 | | | (.31 | ) | | — | | | — | |
October 31, 2008 | | 11.45 | | .51 | | (2.96 | ) | | (2.45 | ) | | (.47 | ) | | (.08 | ) | | (.02 | ) |
October 31, 2007 | | 10.88 | | .40 | | .68 | | | 1.08 | | | (.38 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.06 | | .27 | | .83 | | | 1.10 | | | (.28 | ) | | — | | | — | |
October 31, 2005(2) | | 10.21 | | .04 | | (.11 | ) | | (.07 | ) | | (.08 | ) | | — | | | — | |
Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.63 | | .18 | | .66 | | | .84 | | | (.18 | ) | | — | | | — | |
October 31, 2009 | | 8.44 | | .33 | | 1.17 | | | 1.50 | | | (.31 | ) | | — | | | — | |
October 31, 2008 | | 11.46 | | .46 | | (2.90 | ) | | (2.44 | ) | | (.48 | ) | | (.08 | ) | | (.02 | ) |
October 31, 2007 | | 10.90 | | .35 | | .72 | | | 1.07 | | | (.38 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.07 | | .27 | | .83 | | | 1.10 | | | (.27 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .12 | | .07 | | | .19 | | | (.12 | ) | | — | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.63 | | .20 | | .67 | | | .87 | | | (.20 | ) | | — | | | — | |
October 31, 2009 | | 8.45 | | .34 | | 1.17 | | | 1.51 | | | (.33 | ) | | — | | | — | |
October 31, 2008 | | 11.47 | | .48 | | (2.90 | ) | | (2.42 | ) | | (.50 | ) | | (.08 | ) | | (.02 | ) |
October 31, 2007 | | 10.90 | | .35 | | .76 | | | 1.11 | | | (.41 | ) | | (.13 | ) | | — | |
October 31, 2006(9) | | 10.45 | | .13 | | .53 | | | .66 | | | (.21 | ) | | — | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.63 | | .18 | | .67 | | | .85 | | | (.19 | ) | | — | | | — | |
October 31, 2009 | | 8.44 | | .32 | | 1.18 | | | 1.50 | | | (.31 | ) | | — | | | — | |
October 31, 2008 | | 11.46 | | .30 | | (2.74 | ) | | (2.44 | ) | | (.48 | ) | | (.08 | ) | | (.02 | ) |
October 31, 2007(12) | | 10.91 | | .31 | | .76 | | | 1.07 | | | (.39 | ) | | (.13 | ) | | — | |
Class R3 (5) | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.61 | | .17 | | .66 | | | .83 | | | (.17 | ) | | — | | | — | |
October 31, 2009 | | 8.44 | | .29 | | 1.17 | | | 1.46 | | | (.29 | ) | | — | | | — | |
October 31, 2008 | | 11.45 | | .50 | | (2.96 | ) | | (2.46 | ) | | (.46 | ) | | (.08 | ) | | (.01 | ) |
October 31, 2007 | | 10.89 | | .31 | | .74 | | | 1.05 | | | (.36 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.07 | | .23 | | .84 | | | 1.07 | | | (.25 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .10 | | .08 | | | .18 | | | (.11 | ) | | — | | | — | |
Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.64 | | .21 | | .65 | | | .86 | | | (.19 | ) | | — | | | — | |
October 31, 2009 | | 8.45 | | .34 | | 1.18 | | | 1.52 | | | (.33 | ) | | — | | | — | |
October 31, 2008 | | 11.47 | | .39 | | (2.81 | ) | | (2.42 | ) | | (.50 | ) | | (.08 | ) | | (.02 | ) |
October 31, 2007 | | 10.91 | | .45 | | .65 | | | 1.10 | | | (.41 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.08 | | .29 | | .84 | | | 1.13 | | | (.30 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .15 | | .07 | | | .22 | | | (.14 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.28 | | 8.96 | | | 1,166 | | .25 | | .86 | | 1.82 | | 37 |
| (.31 | ) | | 9.61 | | 18.21 | | | 1,175 | | .25 | | .95 | | 3.76 | | 18 |
| (.57 | ) | | 8.43 | | (22.28 | ) | | 1,028 | | .25 | | .93 | | 4.85 | | 108 |
| (.51 | ) | | 11.45 | | 10.22 | | | 1,957 | | .25 | | 1.36 | | 3.61 | | 93 |
| (.28 | ) | | 10.88 | | 11.02 | | | 1,723 | | .25 | | 3.41 | | 2.53 | | 71 |
| (.08 | ) | | 10.06 | | (1.01 | ) | | 990 | | .25 | | 4.84 | | .37 | | 1 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.29 | | 8.83 | | | 5,603 | | .25 | | .86 | | 1.82 | | 37 |
| (.31 | ) | | 9.63 | | 18.31 | | | 5,267 | | .25 | | .95 | | 3.79 | | 18 |
| (.58 | ) | | 8.44 | | (22.24 | ) | | 5,375 | | .25 | | .93 | | 4.46 | | 108 |
| (.51 | ) | | 11.46 | | 10.12 | | | 4,797 | | .25 | | 1.36 | | 3.14 | | 93 |
| (.27 | ) | | 10.90 | | 11.08 | | | 1,485 | | .25 | | 2.90 | | 2.54 | | 71 |
| (.12 | ) | | 10.07 | | 1.96 | | | 1,020 | | .25 | | 5.32 | | 1.25 | | 1 |
| | | | | | | | | | | | | | | | |
| (.20 | ) | | 10.30 | | 9.07 | | | 18,092 | | — | | .62 | | 1.97 | | 37 |
| (.33 | ) | | 9.63 | | 18.45 | | | 17,176 | | — | | .68 | | 3.84 | | 18 |
| (.60 | ) | | 8.45 | | (22.02 | ) | | 6,866 | | — | | .68 | | 4.64 | | 108 |
| (.54 | ) | | 11.47 | | 10.49 | | | 5,138 | | — | | 1.11 | | 3.27 | | 93 |
| (.21 | ) | | 10.90 | | 5.69 | | | 150 | | — | | 3.35 | | 1.11 | | 71 |
| | | | | | | | | | | | | | | | |
| (.19 | ) | | 10.29 | | 8.85 | | | 15,599 | | .25 | | .87 | | 1.80 | | 37 |
| (.31 | ) | | 9.63 | | 18.31 | | | 11,592 | | .25 | | .95 | | 3.74 | | 18 |
| (.58 | ) | | 8.44 | | (22.21 | ) | | 6,670 | | .25 | | .92 | | 2.92 | | 108 |
| (.52 | ) | | 11.46 | | 10.10 | | | 691 | | .25 | | 1.36 | | 2.62 | | 93 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.27 | | 8.76 | | | 33,382 | | .50 | | 1.11 | | 1.69 | | 37 |
| (.29 | ) | | 9.61 | | 17.83 | | | 29,900 | | .50 | | 1.18 | | 3.35 | | 18 |
| (.55 | ) | | 8.44 | | (22.37 | ) | | 14,347 | | .50 | | 1.18 | | 4.86 | | 108 |
| (.49 | ) | | 11.45 | | 9.91 | | | 17,600 | | .50 | | 1.61 | | 2.78 | | 93 |
| (.25 | ) | | 10.89 | | 10.73 | | | 4,028 | | .50 | | 3.15 | | 2.27 | | 71 |
| (.11 | ) | | 10.07 | | 1.79 | | | 1,768 | | .50 | | 5.56 | | 1.06 | | 1 |
| | | | | | | | | | | | | | | | |
| (.19 | ) | | 10.31 | | 9.04 | | | 6,992 | | — | | .62 | | 2.08 | | 37 |
| (.33 | ) | | 9.64 | | 18.58 | | | 9,204 | | — | | .70 | | 3.99 | | 18 |
| (.60 | ) | | 8.45 | | (22.02 | ) | | 7,315 | | — | | .67 | | 3.75 | | 108 |
| (.54 | ) | | 11.47 | | 10.38 | | | 2,575 | | — | | 1.11 | | 3.93 | | 93 |
| (.30 | ) | | 10.91 | | 11.35 | | | 1,360 | | — | | 2.69 | | 2.73 | | 71 |
| (.14 | ) | | 10.08 | | 2.25 | | | 1,023 | | — | | 5.07 | | 1.45 | | 1 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | $
Return of
Capital | |
2015 Strategy Fund | | | | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.96 | | .17 | | .73 | | | .90 | | | (.18 | ) | | — | | — | |
October 31, 2009 | | 7.80 | | .24 | | 1.16 | | | 1.40 | | | (.24 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .18 | | (2.20 | ) | | (2.02 | ) | | (.16 | ) | | — | | (.02 | ) |
Class R2 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.96 | | .16 | | .72 | | | .88 | | | (.17 | ) | | — | | — | |
October 31, 2009 | | 7.80 | | .24 | | 1.14 | | | 1.38 | | | (.22 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .16 | | (2.19 | ) | | (2.03 | ) | | (.15 | ) | | — | | (.02 | ) |
Class R3 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.95 | | .15 | | .72 | | | .87 | | | (.16 | ) | | — | | — | |
October 31, 2009 | | 7.80 | | .22 | | 1.14 | | | 1.36 | | | (.21 | ) | | — | | — | |
October 31, 2008 (14) | | 10.00 | | .14 | | (2.19 | ) | | (2.05 | ) | | (.13 | ) | | — | | (.02 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 9.68 | | 10.10 | | | 8,893 | | — | | .89 | | 1.80 | | 42 |
| (.24 | ) | | 8.96 | | 18.57 | | | 4,382 | | — | | 1.86 | | 2.80 | | 14 |
| (.18 | ) | | 7.80 | | (20.60 | ) | | 153 | | — | | 13.08 | | 1.85 | | 13 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 9.67 | | 9.90 | | | 5,986 | | .25 | | 1.14 | | 1.70 | | 42 |
| (.22 | ) | | 8.96 | | 18.31 | | | 2,003 | | .25 | | 2.52 | | 2.92 | | 14 |
| (.17 | ) | | 7.80 | | (20.68 | ) | | 274 | | .25 | | 10.64 | | 1.75 | | 13 |
| | | | | | | | | | | | | | | | |
| (.16 | ) | | 9.66 | | 9.80 | | | 9,403 | | .50 | | 1.39 | | 1.58 | | 42 |
| (.21 | ) | | 8.95 | | 17.97 | | | 6,460 | | .50 | | 2.56 | | 2.72 | | 14 |
| (.15 | ) | | 7.80 | | (20.81 | ) | | 300 | | .50 | | 10.45 | | 1.56 | | 13 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
2020 Strategy Fund | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.42 | | .16 | | .85 | | | 1.01 | | | (.17 | ) | | — | | | — | |
October 31, 2009 | | 8.20 | | .24 | | 1.21 | | | 1.45 | | | (.23 | ) | | — | | | — | |
October 31, 2008 | | 12.42 | | .50 | | (4.07 | ) | | (3.57 | ) | | (.48 | ) | | (.14 | ) | | (.03 | ) |
October 31, 2007 | | 11.24 | | .34 | | 1.19 | | | 1.53 | | | (.32 | ) | | (.03 | ) | | — | |
October 31, 2006 | | 10.14 | | .23 | | 1.11 | | | 1.34 | | | (.24 | ) | | — | | | — | |
October 31, 2005(2) | | 10.29 | | .03 | | (.11 | ) | | (.08 | ) | | (.07 | ) | | — | | | — | |
Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.42 | | .17 | | .84 | | | 1.01 | | | (.17 | ) | | — | | | — | |
October 31, 2009 | | 8.19 | | .24 | | 1.22 | | | 1.46 | | | (.23 | ) | | — | | | — | |
October 31, 2008 | | 12.42 | | .48 | | (4.06 | ) | | (3.58 | ) | | (.48 | ) | | (.14 | ) | | (.03 | ) |
October 31, 2007 | | 11.25 | | .29 | | 1.23 | | | 1.52 | | | (.32 | ) | | (.03 | ) | | — | |
October 31, 2006 | | 10.14 | | .22 | | 1.13 | | | 1.35 | | | (.24 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .11 | | .14 | | | .25 | | | (.11 | ) | | — | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.43 | | .19 | | .83 | | | 1.02 | | | (.18 | ) | | — | | | — | |
October 31, 2009 | | 8.20 | | .25 | | 1.23 | | | 1.48 | | | (.25 | ) | | — | | | — | |
October 31, 2008 | | 12.42 | | .49 | | (4.03 | ) | | (3.54 | ) | | (.51 | ) | | (.14 | ) | | (.03 | ) |
October 31, 2007 | | 11.25 | | .24 | | 1.31 | | | 1.55 | | | (.35 | ) | | (.03 | ) | | — | |
October 31, 2006(9) | | 10.62 | | .09 | | .70 | | | .79 | | | (.16 | ) | | — | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.41 | | .17 | | .84 | | | 1.01 | | | (.17 | ) | | — | | | — | |
October 31, 2009 | | 8.18 | | .24 | | 1.22 | | | 1.46 | | | (.23 | ) | | — | | | — | |
October 31, 2008 | | 12.41 | | .27 | | (3.84 | ) | | (3.57 | ) | | (.49 | ) | | (.14 | ) | | (.03 | ) |
October 31, 2007 | | 11.24 | | .27 | | 1.25 | | | 1.52 | | | (.32 | ) | | (.03 | ) | | — | |
October 31, 2006(10) | | 10.82 | | .02 | | .50 | | | .52 | | | (.10 | ) | | — | | | — | |
Class R3(5) | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.40 | | .16 | | .83 | | | .99 | | | (.16 | ) | | — | | | — | |
October 31, 2009 | | 8.17 | | .21 | | 1.23 | | | 1.44 | | | (.21 | ) | | — | | | — | |
October 31, 2008 | | 12.39 | | .51 | | (4.10 | ) | | (3.59 | ) | | (.47 | ) | | (.14 | ) | | (.02 | ) |
October 31, 2007 | | 11.23 | | .28 | | 1.21 | | | 1.49 | | | (.30 | ) | | (.03 | ) | | — | |
October 31, 2006 | | 10.13 | | .18 | | 1.14 | | | 1.32 | | | (.22 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .08 | | .14 | | | .22 | | | (.09 | ) | | — | | | — | |
Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.42 | | .19 | | .84 | | | 1.03 | | | (.18 | ) | | — | | | — | |
October 31, 2009 | | 8.19 | | .25 | | 1.23 | | | 1.48 | | | (.25 | ) | | — | | | — | |
October 31, 2008 | | 12.42 | | .45 | | (4.00 | ) | | (3.55 | ) | | (.51 | ) | | (.14 | ) | | (.03 | ) |
October 31, 2007 | | 11.24 | | .42 | | 1.14 | | | 1.56 | | | (.35 | ) | | (.03 | ) | | — | |
October 31, 2006 | | 10.14 | | .22 | | 1.14 | | | 1.36 | | | (.26 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .13 | | .14 | | | .27 | | | (.13 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.26 | | 10.84 | | | 2,427 | | .25 | | .76 | | 1.65 | | 24 |
| (.23 | ) | | 9.42 | | 18.10 | | | 1,484 | | .25 | | .82 | | 2.91 | | 15 |
| (.65 | ) | | 8.20 | | (29.99 | ) | | 1,391 | | .25 | | .74 | | 4.63 | | 103 |
| (.35 | ) | | 12.42 | | 13.83 | | | 2,016 | | .25 | | .86 | | 2.93 | | 44 |
| (.24 | ) | | 11.24 | | 13.33 | | | 2,165 | | .25 | | 2.38 | | 2.12 | | 47 |
| (.07 | ) | | 10.14 | | (1.02 | ) | | 990 | | .25 | | 4.74 | | .30 | | 7 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.26 | | 10.83 | | | 14,545 | | .25 | | .76 | | 1.71 | | 24 |
| (.23 | ) | | 9.42 | | 18.26 | | | 11,769 | | .25 | | .82 | | 2.83 | | 15 |
| (.65 | ) | | 8.19 | | (30.07 | ) | | 7,207 | | .25 | | .74 | | 4.46 | | 103 |
| (.35 | ) | | 12.42 | | 13.79 | | | 9,498 | | .25 | | .86 | | 2.44 | | 44 |
| (.24 | ) | | 11.25 | | 13.42 | | | 2,118 | | .25 | | 1.95 | | 2.12 | | 47 |
| (.11 | ) | | 10.14 | | 2.52 | | | 1,025 | | .25 | | 5.13 | | 1.11 | | 7 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.27 | | 11.06 | | | 52,168 | | — | | .51 | | 1.90 | | 24 |
| (.25 | ) | | 9.43 | | 18.38 | | | 44,337 | | — | | .56 | | 3.00 | | 15 |
| (.68 | ) | | 8.20 | | (29.80 | ) | | 17,283 | | — | | .49 | | 4.53 | | 103 |
| (.38 | ) | | 12.42 | | 14.05 | | | 19,194 | | — | | .61 | | 2.02 | | 44 |
| (.16 | ) | | 11.25 | | 6.98 | | | 702 | | — | | 1.77 | | .80 | | 47 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 10.25 | | 10.86 | | | 38,896 | | .25 | | .76 | | 1.70 | | 24 |
| (.23 | ) | | 9.41 | | 18.26 | | | 26,236 | | .25 | | .82 | | 2.94 | | 15 |
| (.66 | ) | | 8.18 | | (30.07 | ) | | 18,247 | | .25 | | .74 | | 2.58 | | 103 |
| (.35 | ) | | 12.41 | | 13.81 | | | 4,135 | | .25 | | .86 | | 2.20 | | 44 |
| (.10 | ) | | 11.24 | | 4.34 | | | 641 | | .25 | | 1.62 | | .27 | | 47 |
| | | | | | | | | | | | | | | | |
| (.16 | ) | | 10.23 | | 10.65 | | | 90,786 | | .50 | | 1.01 | | 1.60 | | 24 |
| (.21 | ) | | 9.40 | | 18.05 | | | 74,142 | | .50 | | 1.06 | | 2.52 | | 15 |
| (.63 | ) | | 8.17 | | (30.24 | ) | | 35,919 | | .50 | | .99 | | 4.80 | | 103 |
| (.33 | ) | | 12.39 | | 13.50 | | | 44,038 | | .50 | | 1.11 | | 2.33 | | 44 |
| (.22 | ) | | 11.23 | | 13.14 | | | 9,355 | | .50 | | 2.12 | | 1.70 | | 47 |
| (.09 | ) | | 10.13 | | 2.23 | | | 1,545 | | .50 | | 5.38 | | .89 | | 7 |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 10.27 | | 11.04 | | | 20,595 | | — | | .51 | | 1.91 | | 24 |
| (.25 | ) | | 9.42 | | 18.53 | | | 19,494 | | — | | .57 | | 3.06 | | 15 |
| (.68 | ) | | 8.19 | | (29.88 | ) | | 12,960 | | — | | .49 | | 4.26 | | 103 |
| (.38 | ) | | 12.42 | | 14.16 | | | 10,021 | | — | | .61 | | 3.49 | | 44 |
| (.26 | ) | | 11.24 | | 13.59 | | | 5,953 | | — | | 1.63 | | 2.15 | | 47 |
| (.13 | ) | | 10.14 | | 2.71 | | | 1,027 | | — | | 4.88 | | 1.31 | | 7 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | $
Return of
Capital | |
2025 Strategy Fund | | | | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.31 | | .15 | | .86 | | | 1.01 | | | (.15 | ) | | — | | — | |
October 31, 2009 | | 7.21 | | .15 | | 1.09 | | | 1.24 | | | (.14 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .10 | | (2.77 | ) | | (2.67 | ) | | (.10 | ) | | — | | (.02 | ) |
Class R2 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.30 | | .14 | | .87 | | | 1.01 | | | (.14 | ) | | — | | — | |
October 31, 2009 | | 7.20 | | .13 | | 1.09 | | | 1.22 | | | (.12 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .12 | | (2.82 | ) | | (2.70 | ) | | (.08 | ) | | — | | (.02 | ) |
Class R3 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.29 | | .12 | | .87 | | | .99 | | | (.13 | ) | | — | | — | |
October 31, 2009 | | 7.20 | | .12 | | 1.08 | | | 1.20 | | | (.11 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .09 | | (2.80 | ) | | (2.71 | ) | | (.07 | ) | | — | | (.02 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.15 | ) | | 9.17 | | 12.23 | | | 9,412 | | — | | .87 | | 1.71 | | 19 |
| (.14 | ) | | 8.31 | | 17.67 | | | 3,863 | | — | | 2.12 | | 1.93 | | 12 |
| (.12 | ) | | 7.21 | | (27.03 | ) | | 226 | | — | | 6.19 | | 1.04 | | 113 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 9.17 | | 12.26 | | | 7,197 | | .25 | | 1.12 | | 1.61 | | 19 |
| (.12 | ) | | 8.30 | | 17.47 | | | 3,020 | | .25 | | 2.58 | | 1.80 | | 12 |
| (.10 | ) | | 7.20 | | (27.25 | ) | | 73 | | .25 | | 8.56 | | 1.31 | | 113 |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.15 | | 12.07 | | | 9,533 | | .50 | | 1.37 | | 1.37 | | 19 |
| (.11 | ) | | 8.29 | | 17.10 | | | 5,117 | | .50 | | 2.82 | | 1.66 | | 12 |
| (.09 | ) | | 7.20 | | (27.32 | ) | | 325 | | .50 | | 7.71 | | .99 | | 113 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | |
$
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
2030 Strategy Fund | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.60 | | .13 | | 1.03 | | | 1.16 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 7.45 | | .10 | | 1.14 | | | 1.24 | | | (.09 | ) | | — | | | — | |
October 31, 2008 | | 13.23 | | .50 | | (5.59 | ) | | (5.09 | ) | | (.46 | ) | | (.19 | ) | | (.04 | ) |
October 31, 2007 | | 11.53 | | .31 | | 1.77 | | | 2.08 | | | (.31 | ) | | (.07 | ) | | — | |
October 31, 2006 | | 10.19 | | .21 | | 1.34 | | | 1.55 | | | (.21 | ) | | — | | | — | |
October 31, 2005(2) | | 10.33 | | .03 | | (.11 | ) | | (.08 | ) | | (.06 | ) | | — | | | — | |
Class E | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.56 | | .13 | | 1.02 | | | 1.15 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 7.46 | | .10 | | 1.09 | | | 1.19 | | | (.09 | ) | | — | | | — | |
October 31, 2008 | | 13.23 | | .46 | | (5.54 | ) | | (5.08 | ) | | (.46 | ) | | (.19 | ) | | (.04 | ) |
October 31, 2007 | | 11.54 | | .23 | | 1.85 | | | 2.08 | | | (.32 | ) | | (.07 | ) | | — | |
October 31, 2006 | | 10.20 | | .18 | | 1.37 | | | 1.55 | | | (.21 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .10 | | .19 | | | .29 | | | (.09 | ) | | — | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.57 | | .14 | | 1.02 | | | 1.16 | | | (.14 | ) | | — | | | — | |
October 31, 2009 | | 7.46 | | .11 | | 1.11 | | | 1.22 | | | (.11 | ) | | — | | | — | |
October 31, 2008 | | 13.24 | | .44 | | (5.50 | ) | | (5.06 | ) | | (.48 | ) | | (.19 | ) | | (.05 | ) |
October 31, 2007 | | 11.54 | | .14 | | 1.98 | | | 2.12 | | | (.35 | ) | | (.07 | ) | | — | |
October 31, 2006(9) | | 10.75 | | .07 | | .86 | | | .93 | | | (.14 | ) | | — | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.55 | | .12 | | 1.03 | | | 1.15 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 7.45 | | .10 | | 1.09 | | | 1.19 | | | (.09 | ) | | — | | | — | |
October 31, 2008 | | 13.22 | | .16 | | (5.24 | ) | | (5.08 | ) | | (.46 | ) | | (.19 | ) | | (.04 | ) |
October 31, 2007 | | 11.53 | | .16 | | 1.92 | | | 2.08 | | | (.32 | ) | | (.07 | ) | | — | |
October 31, 2006(10) | | 10.98 | | .02 | | .62 | | | .64 | | | (.09 | ) | | — | | | — | |
Class R3(5) | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.55 | | .11 | | 1.03 | | | 1.14 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 7.45 | | .08 | | 1.10 | | | 1.18 | | | (.08 | ) | | — | | | — | |
October 31, 2008 | | 13.22 | | .48 | | (5.59 | ) | | (5.11 | ) | | (.44 | ) | | (.19 | ) | | (.03 | ) |
October 31, 2007 | | 11.54 | | .17 | | 1.87 | | | 2.04 | | | (.29 | ) | | (.07 | ) | | — | |
October 31, 2006 | | 10.19 | | .16 | | 1.38 | | | 1.54 | | | (.19 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .07 | | .20 | | | .27 | | | (.08 | ) | | — | | | — | |
Class S | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.57 | | .14 | | 1.02 | | | 1.16 | | | (.14 | ) | | — | | | — | |
October 31, 2009 | | 7.46 | | .12 | | 1.10 | | | 1.22 | | | (.11 | ) | | — | | | — | |
October 31, 2008 | | 13.24 | | .39 | | (5.45 | ) | | (5.06 | ) | | (.48 | ) | | (.19 | ) | | (.05 | ) |
October 31, 2007 | | 11.55 | | .29 | | 1.82 | | | 2.11 | | | (.35 | ) | | (.07 | ) | | — | |
October 31, 2006 | | 10.20 | | .23 | | 1.35 | | | 1.58 | | | (.23 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .12 | | .19 | | | .31 | | | (.11 | ) | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.63 | | 13.59 | | | 1,749 | | .25 | | .78 | | 1.44 | | 13 |
| (.09 | ) | | 8.60 | | 16.92 | | | 1,791 | | .25 | | .86 | | 1.43 | | 9 |
| (.69 | ) | | 7.45 | | (40.22 | ) | | 2,069 | | .25 | | .77 | | 4.66 | | 86 |
| (.38 | ) | | 13.23 | | 18.51 | | | 3,739 | | .25 | | .98 | | 2.51 | | 31 |
| (.21 | ) | | 11.53 | | 15.38 | | | 2,854 | | .25 | | 2.38 | | 1.93 | | 104 |
| (.06 | ) | | 10.19 | | (1.01 | ) | | 990 | | .25 | | 4.86 | | .25 | | 1 |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.58 | | 13.54 | | | 13,459 | | .25 | | .78 | | 1.39 | | 13 |
| (.09 | ) | | 8.56 | | 16.24 | | | 10,639 | | .25 | | .85 | | 1.36 | | 9 |
| (.69 | ) | | 7.46 | | (40.14 | ) | | 7,847 | | .25 | | .77 | | 4.25 | | 86 |
| (.39 | ) | | 13.23 | | 18.42 | | | 10,490 | | .25 | | .98 | | 1.88 | | 31 |
| (.21 | ) | | 11.54 | | 15.35 | | | 4,616 | | .25 | | 2.15 | | 1.72 | | 104 |
| (.09 | ) | | 10.20 | | 2.96 | | | 1,029 | | .25 | | 5.37 | | .95 | | 1 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 9.59 | | 13.66 | | | 37,440 | | — | | .53 | | 1.55 | | 13 |
| (.11 | ) | | 8.57 | | 16.65 | | | 31,322 | | — | | .59 | | 1.49 | | 9 |
| (.72 | ) | | 7.46 | | (40.03 | ) | | 10,413 | | — | | .52 | | 4.14 | | 86 |
| (.42 | ) | | 13.24 | | 18.80 | | | 8,582 | | — | | .73 | | 1.21 | | 31 |
| (.14 | ) | | 11.54 | | 8.22 | | | 347 | | — | | 2.07 | | .65 | | 104 |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.57 | | 13.58 | | | 35,688 | | .25 | | .78 | | 1.35 | | 13 |
| (.09 | ) | | 8.55 | | 16.26 | | | 23,534 | | .25 | | .85 | | 1.41 | | 9 |
| (.69 | ) | | 7.45 | | (40.15 | ) | | 14,938 | | .25 | | .77 | | 1.56 | | 86 |
| (.39 | ) | | 13.22 | | 18.46 | | | 3,359 | | .25 | | .98 | | 1.26 | | 31 |
| (.09 | ) | | 11.53 | | 5.40 | | | 633 | | .25 | | 1.79 | | .18 | | 104 |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 9.57 | | 13.46 | | | 71,195 | | .50 | | 1.03 | | 1.25 | | 13 |
| (.08 | ) | | 8.55 | | 16.03 | | | 56,115 | | .50 | | 1.10 | | 1.03 | | 9 |
| (.66 | ) | | 7.45 | | (40.33 | ) | | 26,547 | | .50 | | 1.02 | | 4.49 | | 86 |
| (.36 | ) | | 13.22 | | 18.08 | | | 29,200 | | .50 | | 1.23 | | 1.39 | | 31 |
| (.19 | ) | | 11.54 | | 15.22 | | | 8,249 | | .50 | | 2.33 | | 1.42 | | 104 |
| (.08 | ) | | 10.19 | | 2.69 | | | 1,452 | | .50 | | 5.62 | | .75 | | 1 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 9.59 | | 13.77 | | | 19,783 | | — | | .53 | | 1.53 | | 13 |
| (.11 | ) | | 8.57 | | 16.51 | | | 15,945 | | — | | .60 | | 1.57 | | 9 |
| (.72 | ) | | 7.46 | | (40.02 | ) | | 10,494 | | — | | .52 | | 3.66 | | 86 |
| (.42 | ) | | 13.24 | | 18.70 | | | 7,923 | | — | | .73 | | 2.32 | | 31 |
| (.23 | ) | | 11.55 | | 15.70 | | | 2,513 | | — | | 1.85 | | 2.13 | | 104 |
| (.11 | ) | | 10.20 | | 3.15 | | | 1,031 | | — | | 5.12 | | 1.16 | | 1 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | |
$
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | $
Return of
Capital | |
2035 Strategy Fund | | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.92 | | .13 | | .95 | | | 1.08 | | | (.13 | ) | | — | | — | |
October 31, 2009 | | 6.86 | | .11 | | 1.03 | | | 1.14 | | | (.08 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .07 | | (3.11 | ) | | (3.04 | ) | | (.07 | ) | | — | | (.03 | ) |
Class R2 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.92 | | .12 | | .94 | | | 1.06 | | | (.12 | ) | | — | | — | |
October 31, 2009 | | 6.87 | | .07 | | 1.05 | | | 1.12 | | | (.07 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .08 | | (3.13 | ) | | (3.05 | ) | | (.06 | ) | | — | | (.02 | ) |
Class R3 | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.91 | | .10 | | .95 | | | 1.05 | | | (.11 | ) | | — | | — | |
October 31, 2009 | | 6.87 | | .06 | | 1.03 | | | 1.09 | | | (.05 | ) | | — | | — | |
October 31, 2008(14) | | 10.00 | | .06 | | (3.12 | ) | | (3.06 | ) | | (.05 | ) | | — | | (.02 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 8.87 | | 13.69 | | | 4,748 | | — | | 1.20 | | 1.52 | | 10 |
| (.08 | ) | | 7.92 | | 17.01 | | | 1,927 | | — | | 3.59 | | 1.49 | | 13 |
| (.10 | ) | | 6.86 | | (30.73 | ) | | 428 | | — | | 6.44 | | .70 | | 90 |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 8.86 | | 13.47 | | | 4,909 | | .25 | | 1.45 | | 1.38 | | 10 |
| (.07 | ) | | 7.92 | | 16.79 | | | 1,738 | | .25 | | 3.63 | | 1.06 | | 13 |
| (.08 | ) | | 6.87 | | (30.84 | ) | | 73 | | .25 | | 8.66 | | .86 | | 90 |
| | | | | | | | | | | | | | | | |
| (.11 | ) | | 8.85 | | 13.39 | | | 5,367 | | .50 | | 1.71 | | 1.14 | | 10 |
| (.05 | ) | | 7.91 | | 16.43 | | | 2,877 | | .50 | | 3.83 | | .86 | | 13 |
| (.07 | ) | | 6.87 | | (30.93 | ) | | 124 | | .50 | | 8.56 | | .69 | | 90 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
2040 Strategy Fund | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.61 | | .13 | | | 1.03 | | | 1.16 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 7.49 | | .10 | | | 1.11 | | | 1.21 | | | (.09 | ) | | — | | | — | |
October 31, 2008 | | 13.44 | | .60 | (h) | | (5.86 | )(h) | | (5.26 | ) | | (.46 | )(h) | | (.18 | ) | | (.05 | )(h) |
October 31, 2007 | | 11.71 | | .31 | | | 1.86 | | | 2.17 | | | (.31 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.23 | | .19 | | | 1.48 | | | 1.67 | | | (.19 | ) | | — | | | — | |
October 31, 2005(2) | | 10.36 | | .02 | | | (.12 | ) | | (.10 | ) | | (.03 | ) | | — | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.62 | | .13 | | | 1.02 | | | 1.15 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 7.50 | | .10 | | | 1.11 | | | 1.21 | | | (.09 | ) | | — | | | — | |
October 31, 2008 | | 13.46 | | .48 | (h) | | (5.75 | )(h) | | (5.27 | ) | | (.46 | )(h) | | (.18 | ) | | (.05 | )(h) |
October 31, 2007 | | 11.72 | | .24 | | | 1.94 | | | 2.18 | | | (.31 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.24 | | .17 | | | 1.50 | | | 1.67 | | | (.19 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .08 | | | .24 | | | .32 | | | (.08 | ) | | — | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.62 | | .14 | | | 1.03 | | | 1.17 | | | (.14 | ) | | — | | | — | |
October 31, 2009 | | 7.50 | | .11 | | | 1.12 | | | 1.23 | | | (.11 | ) | | — | | | — | |
October 31, 2008 | | 13.46 | | .38 | (h) | | (5.62 | )(h) | | (5.24 | ) | | (.49 | )(h) | | (.18 | ) | | (.05 | )(h) |
October 31, 2007 | | 11.73 | | .12 | | | 2.08 | | | 2.20 | | | (.34 | ) | | (.13 | ) | | — | |
October 31, 2006(9) | | 10.89 | | .06 | | | .90 | | | .96 | | | (.12 | ) | | — | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.61 | | .12 | | | 1.04 | | | 1.16 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 7.49 | | .10 | | | 1.11 | | | 1.21 | | | (.09 | ) | | — | | | — | |
October 31, 2008 | | 13.46 | | .15 | (h) | | (5.42 | )(h) | | (5.27 | ) | | (.47 | )(h) | | (.18 | ) | | (.05 | )(h) |
October 31, 2007 | | 11.71 | | .28 | | | 1.90 | | | 2.18 | | | (.30 | ) | | (.13 | ) | | — | |
October 31, 2006(3) | | 11.14 | | .09 | | | .59 | | | .68 | | | (.11 | ) | | — | | | — | |
Class R3(5) | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.60 | | .11 | | | 1.03 | | | 1.14 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 7.48 | | .08 | | | 1.12 | | | 1.20 | | | (.08 | ) | | — | | | — | |
October 31, 2008 | | 13.43 | | .53 | (h) | | (5.81 | )(h) | | (5.28 | ) | | (.44 | )(h) | | (.18 | ) | | (.05 | )(h) |
October 31, 2007 | | 11.71 | | .12 | | | 2.02 | | | 2.14 | | | (.29 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.24 | | .14 | | | 1.50 | | | 1.64 | | | (.17 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .06 | | | .24 | | | .30 | | | (.06 | ) | | — | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.62 | | .14 | | | 1.03 | | | 1.17 | | | (.14 | ) | | — | | | — | |
October 31, 2009 | | 7.50 | | .12 | | | 1.11 | | | 1.23 | | | (.11 | ) | | — | | | — | |
October 31, 2008 | | 13.46 | | .40 | (h) | | (5.64 | )(h) | | (5.24 | ) | | (.49 | )(h) | | (.18 | ) | | (.05 | )(h) |
October 31, 2007 | | 11.73 | | .26 | | | 1.94 | | | 2.20 | | | (.34 | ) | | (.13 | ) | | — | |
October 31, 2006 | | 10.24 | | .22 | | | 1.49 | | | 1.71 | | | (.22 | ) | | — | | | — | |
October 31, 2005(1) | | 10.00 | | .10 | | | .24 | | | .34 | | | (.10 | )�� | | — | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.64 | | 13.55 | | | 939 | | .25 | | .80 | | 1.37 | | | 9 |
| (.09 | ) | | 8.61 | | 16.44 | | | 877 | | .25 | | .91 | | 1.41 | | | 8 |
| (.69 | ) | | 7.49 | | (40.84 | ) | | 944 | | .25 | | .84 | | 5.46 | (h) | | 96 |
| (.44 | ) | | 13.44 | | 19.04 | | | 2,363 | | .25 | | 1.14 | | 2.49 | | | 22 |
| (.19 | ) | | 11.71 | | 16.49 | | | 1,886 | | .25 | | 2.64 | | 1.72 | | | 88 |
| (.03 | ) | | 10.23 | | (.95 | ) | | 991 | | .25 | | 4.81 | | .21 | | | 2 |
| | | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.64 | | 13.44 | | | 15,296 | | .25 | | .80 | | 1.46 | | | 9 |
| (.09 | ) | | 8.62 | | 16.44 | | | 7,070 | | .25 | | .90 | | 1.33 | | | 8 |
| (.69 | ) | | 7.50 | | (40.85 | ) | | 4,523 | | .25 | | .85 | | 4.41 | (h) | | 96 |
| (.44 | ) | | 13.46 | | 19.12 | | | 6,353 | | .25 | | 1.14 | | 1.96 | | | 22 |
| (.19 | ) | | 11.72 | | 16.48 | | | 3,096 | | .25 | | 2.30 | | 1.55 | | | 88 |
| (.08 | ) | | 10.24 | | 3.20 | | | 1,032 | | .25 | | 5.26 | | .78 | | | 2 |
| | | | | | | | | | | | | | | | | |
| (.14 | ) | | 9.65 | | 13.67 | | | 24,817 | | — | | .56 | | 1.53 | | | 9 |
| (.11 | ) | | 8.62 | | 16.71 | | | 19,892 | | — | | .63 | | 1.47 | | | 8 |
| (.72 | ) | | 7.50 | | (40.69 | ) | | 4,824 | | — | | .60 | | 3.63 | (h) | | 96 |
| (.47 | ) | | 13.46 | | 19.31 | | | 2,935 | | — | | .89 | | .99 | | | 22 |
| (.12 | ) | | 11.73 | | 8.47 | | | 93 | | — | | 2.27 | | .56 | | | 88 |
| | | | | | | | | | | | | | | | | |
| (.13 | ) | | 9.64 | | 13.58 | | | 28,763 | | .25 | | .80 | | 1.34 | | | 9 |
| (.09 | ) | | 8.61 | | 16.46 | | | 20,226 | | .25 | | .90 | | 1.39 | | | 8 |
| (.70 | ) | | 7.49 | | (40.91 | ) | | 9,936 | | .25 | | .85 | | 1.40 | (h) | | 96 |
| (.43 | ) | | 13.46 | | 19.11 | | | 2,061 | | .25 | | 1.14 | | 2.28 | | | 22 |
| (.11 | ) | | 11.71 | | 6.11 | | | 1,256 | | .25 | | 2.16 | | .86 | | | 88 |
| | | | | | | | | | | | | | | | | |
| (.12 | ) | | 9.62 | | 13.36 | | | 52,206 | | .50 | | 1.05 | | 1.24 | | | 9 |
| (.08 | ) | | 8.60 | | 16.23 | | | 42,544 | | .50 | | 1.15 | | 1.04 | | | 8 |
| (.67 | ) | | 7.48 | | (41.02 | ) | | 22,913 | | .50 | | 1.10 | | 4.91 | (h) | | 96 |
| (.42 | ) | | 13.43 | | 18.75 | | | 29,700 | | .50 | | 1.39 | | .96 | | | 22 |
| (.17 | ) | | 11.71 | | 16.11 | | | 5,506 | | .50 | | 2.48 | | 1.25 | | | 88 |
| (.06 | ) | | 10.24 | | 3.03 | | | 1,701 | | .50 | | 5.52 | | .59 | | | 2 |
| | | | | | | | | | | | | | | | | |
| (.14 | ) | | 9.65 | | 13.65 | | | 15,972 | | — | | .56 | | 1.50 | | | 9 |
| (.11 | ) | | 8.62 | | 16.71 | | | 13,004 | | — | | .65 | | 1.56 | | | 8 |
| (.72 | ) | | 7.50 | | (40.69 | ) | | 7,249 | | — | | .61 | | 3.82 | (h) | | 96 |
| (.47 | ) | | 13.46 | | 19.30 | | | 4,410 | | — | | .89 | | 2.07 | | | 22 |
| (.22 | ) | | 11.73 | | 16.84 | | | 1,666 | | — | | 1.97 | | 2.00 | | | 88 |
| (.10 | ) | | 10.24 | | 3.39 | | | 1,035 | | — | | 5.02 | | .99 | | | 2 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Financial Highlights, continued — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | $
Net
Investment
Income (Loss)(a)(b) | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
2045 Strategy Fund | | | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.93 | | .13 | | .94 | | | 1.07 | | | (.13 | ) | | — | | | — | |
October 31, 2009 | | 6.87 | | .10 | | 1.05 | | | 1.15 | | | (.09 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .07 | | (3.10 | ) | | (3.03 | ) | | (.06 | ) | | — | | | (.04 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.92 | | .11 | | .95 | | | 1.06 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 6.87 | | .07 | | 1.05 | | | 1.12 | | | (.07 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .07 | | (3.11 | ) | | (3.04 | ) | | (.06 | ) | | — | | | (.03 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 7.91 | | .09 | | .97 | | | 1.06 | | | (.12 | ) | | — | | | — | |
October 31, 2009 | | 6.87 | | .06 | | 1.04 | | | 1.10 | | | (.06 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .06 | | (3.12 | ) | | (3.06 | ) | | (.04 | ) | | — | | | (.03 | ) |
2050 Strategy Fund | | | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.03 | | .11 | | .97 | | | 1.08 | | | (.13 | ) | | (.02 | ) | | — | |
October 31, 2009 | | 6.98 | | .10 | | 1.05 | | | 1.15 | | | (.10 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .09 | | (2.99 | ) | | (2.90 | ) | | (.08 | ) | | — | | | (.04 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.02 | | .11 | | .96 | | | 1.07 | | | (.12 | ) | | (.02 | ) | | — | |
October 31, 2009 | | 6.98 | | .09 | | 1.04 | | | 1.13 | | | (.09 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .07 | | (2.98 | ) | | (2.91 | ) | | (.08 | ) | | — | | | (.03 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 8.02 | | .10 | | .97 | | | 1.07 | | | (.12 | ) | | (.02 | ) | | — | |
October 31, 2009 | | 6.99 | | .05 | | 1.05 | | | 1.10 | | | (.07 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .06 | | (2.98 | ) | | (2.92 | ) | | (.06 | ) | | — | | | (.03 | ) |
In Retirement Fund | | | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.27 | | .18 | | .64 | | | .82 | | | (.18 | ) | | — | | | — | |
October 31, 2009 | | 8.12 | | .32 | | 1.12 | | | 1.44 | | | (.29 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .25 | | (1.87 | ) | | (1.62 | ) | | (.25 | ) | | — | | | (.01 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.27 | | .17 | | .64 | | | .81 | | | (.17 | ) | | — | | | — | |
October 31, 2009 | | 8.12 | | .31 | | 1.11 | | | 1.42 | | | (.27 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .23 | | (1.86 | ) | | (1.63 | ) | | (.24 | ) | | — | | | (.01 | ) |
Class R3(4) | | | | | | | | | | | | | | | | | | | |
April 30, 2010* | | 9.26 | | .14 | | .66 | | | .80 | | | (.17 | ) | | — | | | — | |
October 31, 2009 | | 8.12 | | .27 | | 1.13 | | | 1.40 | | | (.26 | ) | | — | | | — | |
October 31, 2008(14) | | 10.00 | | .22 | | (1.87 | ) | | (1.65 | ) | | (.22 | ) | | — | | | (.01 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(c)(e) | | | $
Net Assets,
End of Period
(000) | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(f)(g) | | %
Ratio of Expenses
to Average
Net Assets,
Gross(d)(f) | | %
Ratio of Net
Investment Income
to Average
Net Assets(c)(g) | | %
Portfolio
Turnover Rate(c) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.13 | ) | | 8.87 | | 13.57 | | | 1,966 | | — | | 1.79 | | 1.56 | | 24 |
| (.09 | ) | | 7.93 | | 17.10 | | | 2,053 | | — | | 4.28 | | 1.48 | | 20 |
| (.10 | ) | | 6.87 | | (30.60 | ) | | 660 | | — | | 6.27 | | .72 | | 34 |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 8.86 | | 13.49 | | | 5,028 | | .25 | | 2.03 | | 1.30 | | 24 |
| (.07 | ) | | 7.92 | | 16.73 | | | 2,220 | | .25 | | 4.48 | | 1.02 | | 20 |
| (.09 | ) | | 6.87 | | (30.71 | ) | | 70 | | .25 | | 8.21 | | .74 | | 34 |
| | | | | | | | | | | | | | | | |
| (.12 | ) | | 8.85 | | 13.42 | | | 1,528 | | .50 | | 2.28 | | 1.08 | | 24 |
| (.06 | ) | | 7.91 | | 16.36 | | | 702 | | .50 | | 4.81 | | .88 | | 20 |
| (.07 | ) | | 6.87 | | (30.82 | ) | | 72 | | .50 | | 8.43 | | .60 | | 34 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.15 | ) | | 8.96 | | 13.58 | | | 1,307 | | — | | 1.08 | | 1.29 | | 17 |
| (.10 | ) | | 8.03 | | 17.32 | | | 490 | | — | | 2.39 | | 1.41 | | 20 |
| (.12 | ) | | 6.98 | | (29.54 | ) | | 71 | | — | | 21.57 | | .90 | | 6 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 8.95 | | 13.49 | | | 13,072 | | .25 | | 1.32 | | 1.33 | | 17 |
| (.09 | ) | | 8.02 | | 16.95 | | | 8,959 | | .25 | | 1.95 | | 1.28 | | 20 |
| (.11 | ) | | 6.98 | | (29.65 | ) | | 71 | | .25 | | 21.83 | | .76 | | 6 |
| | | | | | | | | | | | | | | | |
| (.14 | ) | | 8.95 | | 13.39 | | | 2,670 | | .50 | | 1.57 | | 1.12 | | 17 |
| (.07 | ) | | 8.02 | | 16.66 | | | 1,436 | | .50 | | 2.34 | | .77 | | 20 |
| (.09 | ) | | 6.99 | | (29.77 | ) | | 71 | | .50 | | 22.08 | | .61 | | 6 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (.18 | ) | | 9.91 | | 8.96 | | | 264 | | — | | 2.41 | | 1.86 | | 35 |
| (.29 | ) | | 9.27 | | 18.68 | | | 196 | | — | | 4.67 | | 3.86 | | 26 |
| (.26 | ) | | 8.12 | | (16.82 | ) | | 84 | | — | | 20.48 | | 2.58 | | 11 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 9.91 | | 8.86 | | | 3,432 | | .25 | | 2.65 | | 1.76 | | 35 |
| (.27 | ) | | 9.27 | | 18.43 | | | 2,356 | | .25 | | 3.98 | | 3.77 | | 26 |
| (.25 | ) | | 8.12 | | (16.95 | ) | | 83 | | .25 | | 20.73 | | 2.43 | | 11 |
| | | | | | | | | | | | | | | | |
| (.17 | ) | | 9.89 | | 8.66 | | | 1,510 | | .50 | | 2.87 | | 1.43 | | 35 |
| (.26 | ) | | 9.26 | | 18.09 | | | 758 | | .50 | | 4.83 | | 3.24 | | 26 |
| (.23 | ) | | 8.12 | | (17.08 | ) | | 85 | | .50 | | 20.94 | | 2.28 | | 11 |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
LifePoints® Funds
Notes to Financial Highlights — April 30, 2010 (Unaudited)
| * | For the period ended April 30, 2010 (Unaudited). |
| (1) | For the period January 1, 2005 (commencement of operations) to October 31, 2005. |
| (2) | For the period September 1, 2005 (commencement of operations) to October 31, 2005. |
| (3) | For the period March 17, 2006 (commencement of operations) to October 31, 2006. |
| (4) | For the period March 29, 2006 (commencement of operations) to October 31, 2006. |
| (5) | Class D Shares were redesignated Class R3 Shares on March 1, 2006. |
| (6) | For the period April 3, 2006 (commencement of operations) to October 31, 2006. |
| (7) | For the period May 19, 2006 (commencement of operations) to October 31, 2006. |
| (8) | For the period June 6, 2006 (commencement of operations) to October 31, 2006. |
| (9) | For the period June 7, 2006 (commencement of operations) to October 31, 2006. |
| (10) | For the period September 8, 2006 (commencement of operations) to October 31, 2006. |
| (11) | For the period October 3, 2006 (commencement of operations) to October 31, 2006. |
| (12) | For the period November 10, 2006 (commencement of operations) to October 31, 2007. |
| (13) | For the period December 29, 2006 (commencement of operations) to October 31, 2007. |
| (14) | For the period March 31, 2008 (commencement of operations) to October 31, 2008. |
| (a) | Average month-end 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) | Periods less than one year are not annualized. |
| (d) | The ratios for periods less than one year are annualized. |
| (e) | Total return for Class A does not reflect a front-end sales charge. If sales charges were included, the total return would be lower. |
| (f) | 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. |
| (g) | May reflect amounts waived and/or reimbursed by RIMCo (“Russell Investment Management Company”) and/or RFSC (“Russell Fund Services Company”). |
| (h) | Amounts include reclassification between income and return of capital. |
See accompanying notes which are an integral part of the financial statements.
| | |
| 82 | | Notes to Financial Highlights |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements — April 30, 2010 (Unaudited)
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 37 different investment portfolios referred to as Funds. These financial statements report on 15 of these Funds (each a “Fund” and collectively the “Funds”). The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under a Second Amended and Restated Master Trust Agreement dated October 1, 2008. The Investment Company’s Master Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest.
Target Portfolio Funds
The Funds seek to achieve their objective by investing in shares of certain of the Investment Company’s Funds (the “Underlying Funds”) as set forth in the table below. Russell Investment Management Company (“RIMCo”) is the Funds’ adviser and may modify the target asset allocation for any Fund and/or the Underlying Funds in which the Funds invest from time to time based on strategic capital markets research or on factors such as RIMCo’s outlook for the economy, financial markets generally and/or relative market valuation of the asset classes represented by each Underlying Fund. In the future, the Fund may also invest in other RIC Underlying Funds. Any modification in the asset allocation or changes to the Underlying Funds will be based on strategic, long-term allocation decisions and not on tactical, short-term positioning and may be made one or more times per year. In the future, the Funds may also invest in other funds which are not currently Underlying Funds.
| | | | | | | | | | | | | | | |
| | | Asset Allocation Targets as of March 1, 2010 | |
| Underlying Funds | | Conservative
Strategy Fund | | | Moderate Strategy Fund | | | Balanced
Strategy Fund | | | Growth
Strategy Fund | | | Equity Growth
Strategy Fund | |
| | | | | | | | | | | | | | | |
Bonds | | | | | | | | | | | | | | | |
Russell Investment Grade Bond Fund | | 20 | % | | 20 | % | | — | % | | — | % | | — | % |
Russell Short Duration Bond Fund | | 20 | | | — | | | — | | | — | | | — | |
Russell Strategic Bond Fund | | 40 | | | 40 | | | 40 | | | 20 | | | — | |
Domestic Equities | | | | | | | | | | | | | | | |
Russell Real Estate Securities Fund | | 3 | | | 3 | | | 5 | | | 6 | | | 7 | |
Russell U.S. Core Equity Fund | | 4 | | | 8 | | | 13 | | | 18 | | | 23 | |
Russell U.S. Quantitative Equity Fund | | 4 | | | 9 | | | 13 | | | 17 | | | 22 | |
Russell U.S. Small & Mid Cap Fund | | — | | | 3 | | | 4 | | | 6 | | | 7 | |
International Equities | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund | | — | | | 2 | | | 3 | | | 4 | | | 5 | |
Russell Global Equity Fund | | 5 | | | 6 | | | 8 | | | 10 | | | 13 | |
Russell International Developed Markets Fund | | 4 | | | 9 | | | 14 | | | 19 | | | 23 | |
| | | | | | | | | | | | | | | |
| | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | | | | | | | | | | | | | | |
Target Date Funds
Each of the Funds listed in the table below seeks to achieve its objective by investing in Shares of certain of the Underlying Funds. The allocation of these Funds’ assets to the Underlying Funds in which they invest will become more conservative over time excluding the 2010 Strategy Fund and In Retirement Fund. At approximately the target year, the target allocations of each Fund to the Underlying Funds will be fixed at 68% exposure to the underlying fixed income funds and 32% exposure to underlying equity funds. This means 32% of the investment will be exposed to equity markets, and the risks of such exposure, while in retirement. Once a Fund (other than the In Retirement Fund) reaches its target year it may, depending on the facts and circumstances at the time and contingent upon Board approval, continue to operate, be merged into the In Retirement Fund or another fund, or be liquidated. Currently, RIMCo will manage each Fund according to its target asset allocation strategy and will not trade actively among Underlying Funds or attempt to capture short-term market opportunities. However, RIMCO may modify the target asset allocation for the Fund and/or the Underlying Funds in which the Fund invests from time to time based on strategic capital markets research or on factors such as RIMCo’s outlook for the economy, financial markets generally and/or relative market valuation of the asset classes represented by each Underlying Fund. In the future, the Fund may also invest in other RIC Underlying Funds. Any modification in the asset allocation or changes to the Underlying Funds will be based on strategic, long-term allocation decisions and not on tactical, short-term positioning and may be made one or more times per year. In addition, the Funds may in the future invest in other funds which are not currently Underlying Funds.
| | |
| Notes to Financial Statements | | 83 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| | | Asset Allocation Targets as of March 1, 2010 | |
| Underlying Funds | | 2010
Strategy Fund | | | 2015
Strategy Fund | | | 2020
Strategy Fund | | | 2025
Strategy Fund | | | 2030
Strategy Fund | |
| | | | | | | | | | | | | | | |
Bonds | | | | | | | | | | | | | | | |
Russell Investment Grade Bond Fund | | 20 | % | | 18 | % | | 8 | % | | — | % | | — | % |
Russell Short Duration Bond Fund | | 8 | | | — | | | — | | | — | | | — | |
Russell Strategic Bond Fund | | 40 | | | 40 | | | 40 | | | 33 | | | 13 | |
Domestic Equities | | | | | | | | | | | | | | | |
Russell Real Estate Securities Fund | | 3 | | | 3 | | | 4 | | | 5 | | | 6 | |
Russell U.S. Core Equity Fund | | 6 | | | 9 | | | 11 | | | 15 | | | 20 | |
Russell U.S. Quantitative Equity Fund | | 7 | | | 9 | | | 11 | | | 14 | | | 19 | |
Russell U.S. Small & Mid Cap Fund | | 2 | | | 3 | | | 4 | | | 5 | | | 6 | |
International Equities | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund | | 1 | | | 2 | | | 3 | | | 3 | | | 4 | |
Russell Global Equity Fund | | 6 | | | 6 | | | 7 | | | 9 | | | 11 | |
Russell International Developed Markets Fund | | 7 | | | 10 | | | 12 | | | 16 | | | 21 | |
| | | | | | | | | | | | | | | |
| | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | | | | | | | | | | | | | | |
| |
| | | Asset Allocation Targets as of March 1, 2010 | |
| Underlying Funds | | 2035
Strategy Fund | | | 2040
Strategy Fund | | | 2045
Strategy Fund | | | 2050
Strategy Fund | | | In Retirement
Fund | |
| | | | | | | | | | | | | | | |
Bonds | | | | | | | | | | | | | | | |
Russell Investment Grade Bond Fund | | — | % | | — | % | | — | % | | — | % | | 20 | % |
Russell Short Duration Bond Fund | | — | | | — | | | — | | | — | | | 8 | |
Russell Strategic Bond Fund | | 10 | | | 10 | | | 10 | | | 10 | | | 40 | |
Domestic Equities | | | | | | | | | | | | | | | |
Russell Real Estate Securities Fund | | 6 | | | 6 | | | 6 | | | 6 | | | 3 | |
Russell U.S. Core Equity Fund | | 21 | | | 21 | | | 23 | | | 21 | | | 6 | |
Russell U.S. Quantitative Equity Fund | | 19 | | | 19 | | | 23 | | | 19 | | | 7 | |
Russell U.S. Small & Mid Cap Fund | | 6 | | | 6 | | | 6 | | | 6 | | | 2 | |
International Equities | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund | | 5 | | | 5 | | | 5 | | | 5 | | | 1 | |
Russell Global Equity Fund | | 12 | | | 12 | | | 7 | | | 12 | | | 6 | |
Russell International Developed Markets Fund | | 21 | | | 21 | | | 20 | | | 21 | | | 7 | |
| | | | | | | | | | | | | | | |
| | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | | | | | | | | | | | | | | |
| 2. | | Significant Accounting Policies |
The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“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 following is a summary of the significant accounting policies consistently followed by each Fund in the preparation of its financial statements.
Security Valuation
The Funds value their portfolio securities, the shares of the Underlying Funds, at the current net asset value per share of each Underlying Fund. Generally, Underlying Fund portfolio securities are valued at the close of the principal exchange on which they are traded.
Fair value of securities is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. To increase consistency and comparability in fair value measurement, the fair value hierarchy was established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
| | |
| 84 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
The fair value hierarchy of inputs is summarized in the three broad levels listed below.
| | • | | Level 1 — quoted prices (unadjusted) in active markets for identical investments |
| | • | | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| | • | | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The levels associated with valuing the Funds’ investments for the period ended April 30, 2010 were level one for all Funds.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost.
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.
Each Fund qualifies as a regulated investment company and distributes all of its taxable income and capital gains. Therefore, no federal income tax provision was required for the Funds. Financial reporting records are adjusted for permanent book tax differences to reflect tax character but are not adjusted for temporary differences. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year end; accordingly tax-basis balances have not been determined as of April 30, 2010.
Each Fund files a U.S. tax return. At April 30, 2010, the Funds have 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 ending October 31, 2006 through October 31, 2008, 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.
Dividends and Distributions to Shareholders
Income, dividends and capital gain distributions, 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 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 GAAP relate primarily to investments in 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 net asset values.
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 fees and expenses incurred indirectly by the Funds will vary.
Class Allocation
Each of the Funds presented herein offer certain of the following classes of shares: Class A, Class C, Class E, Class R1, Class R2, Class R3 and Class S. All share classes have identical voting, dividend, liquidation and other rights and the same terms and
| | |
| Notes to Financial Statements | | 85 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
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), net 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.
| 3. | | Investment Transactions |
Securities
During the period ended April 30, 2010, purchases and sales of the Underlying Funds (excluding short-term investments) were as follows:
| | | | | | |
| | | Purchases | | Sales |
| | | | | | |
Conservative Strategy Fund | | $ | 205,735,386 | | $ | 152,525,636 |
Moderate Strategy Fund | | | 294,669,114 | | | 285,930,764 |
Balanced Strategy Fund | | | 320,398,783 | | | 351,908,317 |
Growth Strategy Fund | | | 258,727,994 | | | 333,741,908 |
Equity Growth Strategy Fund | | | 117,797,512 | | | 194,931,525 |
2010 Strategy Fund | | | 30,308,698 | | | 28,943,111 |
2015 Strategy Fund | | | 18,185,754 | | | 8,241,246 |
2020 Strategy Fund | | | 72,004,446 | | | 46,741,259 |
2025 Strategy Fund | | | 16,233,250 | | | 3,922,882 |
2030 Strategy Fund | | | 43,302,035 | | | 20,994,810 |
2035 Strategy Fund | | | 8,462,796 | | | 1,116,839 |
2040 Strategy Fund | | | 32,526,127 | | | 11,517,892 |
2045 Strategy Fund | | | 4,449,122 | | | 1,609,952 |
2050 Strategy Fund | | | 7,009,671 | | | 2,409,653 |
In Retirement Fund | | | 3,192,512 | | | 1,611,564 |
| 4. | | Related Party Transactions, Fees and Expenses |
Adviser, Administrator and Transfer and Dividend Disbursing Agent
RIMCo advises the Funds and Russell Fund Services Company (“RFSC”) is the Funds’ administrator. RFSC is a wholly-owned subsidiary of RIMCo. RIMCo is a wholly-owned subsidiary of Frank Russell Company (a subsidiary of The Northwestern Mutual Life Insurance Company). Frank Russell Company provides ongoing money manager research and trade placement services to RIC and RIMCo. The advisory fee of 0.20% and administrative fee of 0.05% are based upon the average daily net assets of the Funds and are payable monthly. The following shows totals respectively, for the period ended April 30, 2010.
| | | | | | |
| | | Advisory | | Administrative |
| | | | | | |
Conservative Strategy Fund | | $ | 559,146 | | $ | 139,787 |
Moderate Strategy Fund | | | 1,003,190 | | | 250,797 |
Balanced Strategy Fund | | | 4,317,933 | | | 1,079,483 |
Growth Strategy Fund | | | 2,961,014 | | | 740,253 |
Equity Growth Strategy Fund | | | 1,393,664 | | | 348,416 |
2010 Strategy Fund | | | 77,335 | | | 19,334 |
2015 Strategy Fund | | | 19,482 | | | 4,871 |
2020 Strategy Fund | | | 198,155 | | | 49,539 |
2025 Strategy Fund | | | 20,295 | | | 5,074 |
2030 Strategy Fund | | | 160,956 | | | 40,239 |
2035 Strategy Fund | | | 11,410 | | | 2,852 |
2040 Strategy Fund | | | 123,756 | | | 30,939 |
2045 Strategy Fund | | | 6,573 | | | 1,643 |
2050 Strategy Fund | | | 14,010 | | | 3,503 |
In Retirement Fund | | | 4,565 | | | 1,141 |
RFSC serves as the Transfer and Dividend Disbursing Agent for the Investment Company. For this service, RFSC is paid a fee based upon the average daily net assets of the Funds for transfer agency and dividend disbursing services. RFSC retains a portion
| | |
| 86 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
of this fee for its services provided to the Funds and pays the balance to unaffiliated agents who assist in providing these services. Total fees for the Funds presented herein for the period ended April 30, 2010, were as follows:
| | | |
| | | Amount Paid |
| | | |
Conservative Strategy Fund | | $ | 503,385 |
Moderate Strategy Fund | | | 902,593 |
Balanced Strategy Fund | | | 3,885,894 |
Growth Strategy Fund | | | 2,664,707 |
Equity Growth Strategy Fund | | | 1,253,892 |
2010 Strategy Fund | | | 69,648 |
2015 Strategy Fund | | | 17,612 |
2020 Strategy Fund | | | 178,562 |
2025 Strategy Fund | | | 18,362 |
2030 Strategy Fund | | | 145,043 |
2035 Strategy Fund | | | 10,328 |
2040 Strategy Fund | | | 111,541 |
2045 Strategy Fund | | | 5,941 |
2050 Strategy Fund | | | 12,642 |
In Retirement Fund | | | 4,125 |
Waivers and Reimbursements
Target Portfolio Funds
For each Fund individually, RIMCo had contractually agreed, until February 28, 2010, to waive up to the full amount of its 0.20% advisory fee and then reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses exceeded 0.09% of the average daily net assets of the Fund on an annual basis.
Effective March 1, 2010, RIMCo has contractually agreed, until February 28, 2011, to waive up to the full amount of its 0.20% 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.
Target Date Funds
Until February 28, 2011, RIMCo has agreed to waive its advisory fee and RFSC has agreed to waive its administration and its transfer agency fees. In addition, until February 28, 2011, RIMCo has agreed to reimburse all other operating expenses other than Rule 12b-1 distribution fees, shareholder services fees, the expenses of other investment companies in which the Funds invest which are borne indirectly by the Funds or extraordinary expenses. These waivers and reimbursements may not be terminated during the relevant period except with Board approval.
As of April 30, 2010, RIMCo and RFSC waived/reimbursed the following expenses:
| | | | | | | | | | | | |
| | | RIMCo Waiver | | RFSC Waiver | | RIMCo / RFSC
Reimbursement | | Total |
| | | | | | | | | | | | |
Conservative Strategy Fund | | $ | 535,221 | | $ | — | | $ | 4,126 | | $ | 539,347 |
Moderate Strategy Fund | | | 910,773 | | | — | | | — | | | 910,773 |
Balanced Strategy Fund | | | 3,667,739 | | | — | | | — | | | 3,667,739 |
Growth Strategy Fund | | | 2,582,736 | | | — | | | — | | | 2,582,736 |
Equity Growth Strategy Fund | | | 1,270,746 | | | — | | | — | | | 1,270,746 |
2010 Strategy Fund | | | 77,336 | | | 88,982 | | | 73,561 | | | 239,879 |
2015 Strategy Fund | | | 19,482 | | | 22,483 | | | 44,612 | | | 86,577 |
2020 Strategy Fund | | | 198,155 | | | 228,098 | | | 84,387 | | | 510,640 |
2025 Strategy Fund | | | 20,295 | | | 23,436 | | | 44,691 | | | 88,422 |
2030 Strategy Fund | | | 160,956 | | | 185,282 | | | 84,795 | | | 431,033 |
2035 Strategy Fund | | | 11,410 | | | 13,180 | | | 44,006 | | | 68,596 |
2040 Strategy Fund | | | 123,756 | | | 142,480 | | | 78,923 | | | 345,159 |
2045 Strategy Fund | | | 6,573 | | | 7,584 | | | 44,429 | | | 58,586 |
2050 Strategy Fund | | | 14,010 | | | 16,145 | | | 44,719 | | | 74,874 |
In Retirement Fund | | | 4,565 | | | 5,266 | | | 44,796 | | | 54,627 |
| | |
| Notes to Financial Statements | | 87 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Distributor and Shareholder Servicing
Russell Financial Services, Inc. (the “Distributor”), a wholly owned subsidiary of RIMCo, is the distributor for RIC pursuant to a distribution agreement with the Investment Company.
The Investment Company has a distribution plan pursuant to Rule 12b-1 (the “Plan”) under the 1940 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, Class C and Class R3 shares subject to the distribution plan. The 12b-1 distribution payments shall not exceed 0.25% of the average daily net assets of a Fund’s Class A or Class R3 shares or 0.75% of the average daily net assets of a Fund’s Class C shares 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, Class E, Class R2 and Class R3 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, Class E, Class R2 and Class R3 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 R2 and Class R3 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 R2 and Class R3 Shares may pay more than the economic equivalent of the maximum sales charges permitted by FINRA.
For the period ended April 30, 2010, the Distributor retained the following amounts in sales charges:
| | | |
Contingent Deferred
Sales Charges | | Class A Shares |
Balanced Strategy Fund | | $ | 58,698 |
For the period ended April 30, 2010, the sales commissions paid to the selling agents for the sale of Class A shares are as follows:
| | | | | | |
| Funds | | Aggregate
Front-End
Sales Charges
on Class A Shares | | Class A Front-End
Sales Charges
Retained by
Distributor |
Conservative Strategy Fund | | $ | 273,068 | | $ | 46,114 |
Moderate Strategy Fund | | | 393,756 | | | 66,807 |
Balanced Strategy Fund | | | 1,846,436 | | | 307,365 |
Growth Strategy Fund | | | 1,440,440 | | | 234,612 |
Equity Growth Strategy Fund | | | 349,591 | | | 55,166 |
2020 Strategy Fund | | | 418 | | | 92 |
2030 Strategy Fund | | | 457 | | | 57 |
2040 Strategy Fund | | | 457 | | | 59 |
| | |
| 88 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Accrued Fees Payable to Affiliates
Accrued fees payable to affiliates for the period ended April 30, 2010 were as follows:
| | | | | | | | | | | | | | | | | | |
| | | Conservative Strategy
Fund | | Moderate Strategy
Fund | | Balanced Strategy
Fund | | Growth Strategy
Fund | | Equity Growth
Strategy Fund | | 2010 Strategy Fund |
| | | | | | | | | | | | | | | | | | |
Advisory Fees | | $ | 12,069 | | $ | 33,188 | | $ | 186,223 | | $ | 101,535 | | $ | 37,095 | | $ | — |
Administration Fees | | | 24,646 | | | 43,116 | | | 185,892 | | | 127,826 | | | 59,963 | | | — |
Distribution Fees | | | 145,103 | | | 261,069 | | | 1,250,958 | | | 835,210 | | | 438,081 | | | 6,630 |
Shareholder Servicing Fees | | | 86,292 | | | 145,020 | | | 567,531 | | | 396,604 | | | 195,281 | | | 10,242 |
Transfer Agent Fees | | | 88,726 | | | 155,219 | | | 669,213 | | | 460,173 | | | 215,865 | | | 143 |
Trustees Fees | | | — | | | 121 | | | 308 | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | |
| | $ | 356,836 | | $ | 637,733 | | $ | 2,860,125 | | $ | 1,921,348 | | $ | 946,285 | | $ | 17,015 |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 2015 Strategy
Fund | | 2020 Strategy Fund | | 2025 Strategy Fund | | 2030 Strategy Fund | | 2035 Strategy Fund | | 2040 Strategy Fund |
Advisory Fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — |
Administration Fees | | | — | | | — | | | — | | | — | | | — | | | — |
Distribution Fees | | | 1,904 | | | 17,917 | | | 1,872 | | | 14,191 | | | 1,073 | | | 10,398 |
Shareholder Servicing Fees | | | 3,065 | | | 27,203 | | | 3,306 | | | 22,948 | | | 2,074 | | | 18,440 |
Transfer Agent Fees | | | 66 | | | 399 | | | 61 | | | 365 | | | 32 | | | 275 |
Trustees Fees | | | — | | | — | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | |
| | $ | 5,035 | | $ | 45,519 | | $ | 5,239 | | $ | 37,504 | | $ | 3,179 | | $ | 29,113 |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 2045 Strategy
Fund | | 2050 Strategy Fund | | In Retirement
Fund | | | | | | |
Advisory Fees | | $ | — | | $ | — | | $ | — | | | | | | | | | |
Administration Fees | | | — | | | — | | | — | | | | | | | | | |
Distribution Fees | | | 304 | | | 540 | | | 318 | | | | | | | | | |
Shareholder Servicing Fees | | | 1,333 | | | 3,224 | | | 1,086 | | | | | | | | | |
Transfer Agent Fees | | | 18 | | | 25 | | | 5 | | | | | | | | | |
Trustees Fees | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | $ | 1,655 | | $ | 3,789 | | $ | 1,409 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Board of Trustees
The Russell Fund Complex consists of RIC, which has 37 Funds, and Russell Investment Funds (“RIF”), which has nine Funds. Each of the Trustees is a Trustee of both RIC and RIF. During the period, the Russell Fund Complex paid each of its independent Trustees a retainer of $72,000 per year, $6,500 for each regular quarterly meeting attended in person, $2,500 for each special meeting attended in person, and $2,500 for each Audit Committee meeting, Nominating and Governance Committee meeting, Investment Committee meeting or any other committee meeting established and approved by the Board that is attended in person. Each Trustee receives a $1,000 fee for attending quarterly and special meetings and a $500 fee for attending committee meetings by phone instead of receiving the full fee had the member attended in person. Trustees’ out of pocket expenses are also paid by the Russell Fund Complex. The Audit Committee Chair and Investment Committee Chair are each paid a fee of $12,000 per year and the Nominating and Governance Committee chair is paid a fee of $6,000 per year. The chairman of the Board receives additional annual compensation of $72,000.
| | |
| Notes to Financial Statements | | 89 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Transactions with Affiliated Companies
An affiliated company is a company in which a Fund has ownership of at least 5% of the voting securities or under common control. Transactions during the period ended April 30, 2010 with Underlying Funds which are, or were, an affiliated company are as follows:
| | | | | | | | | | | | | | | | |
| Affiliate | | Market Value | | Purchases Cost | | Sales Cost | | Realized
Gain (Loss) | | | Income
Distributions |
Conservative Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 24,113,478 | | $ | 4,437,076 | | $ | 14,570,172 | | $ | 479,650 | | | $ | 136,302 |
Russell U.S. Quantitative Equity Fund | | | 23,988,779 | | | 3,422,775 | | | 8,818,439 | | | (346,151 | ) | | | 174,922 |
Russell International Developed Markets Fund | | | 24,096,711 | | | 5,764,932 | | | 2,621,346 | | | (56,233 | ) | | | 769,174 |
Russell Global Equity Fund | | | 30,156,954 | | | 19,608,835 | | | 2,351,627 | | | (190,082 | ) | | | 153,907 |
Russell Strategic Bond Fund | | | 243,219,913 | | | 34,575,387 | | | 121,251,769 | | | (2,031,291 | ) | | | 7,049,463 |
Russell Investment Grade Bond Fund | | | 121,360,911 | | | 120,138,379 | | | 109,009 | | | — | | | | 461,888 |
Russell Short Duration Bond Fund | | | 121,186,433 | | | 15,234,183 | | | 1,002,191 | | | 1,744 | | | | 1,921,145 |
Russell Real Estate Securities Fund | | | 18,745,133 | | | 2,553,819 | | | 3,844,242 | | | 99,204 | | | | 227,622 |
| | | | | | | | | | | | | | | | |
| | $ | 606,868,312 | | $ | 205,735,386 | | $ | 154,568,795 | | $ | (2,043,159 | ) | | $ | 10,894,423 |
| | | | | | | | | | | | | | | | |
Moderate Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 84,423,187 | | $ | 2,489,345 | | $ | 31,096,667 | | $ | (5,775,939 | ) | | $ | 432,621 |
Russell U.S. Quantitative Equity Fund | | | 93,918,315 | | | 1,775,548 | | | 18,233,327 | | | (2,619,917 | ) | | | 657,326 |
Russell U.S. Small & Mid Cap Fund | | | 32,216,417 | | | 1,358,940 | | | 4,712,512 | | | (797,322 | ) | | | 186,600 |
Russell International Developed Markets Fund | | | 93,107,396 | | | 12,559,555 | | | 5,407,660 | | | 64,481 | | | | 3,148,907 |
Russell Global Equity Fund | | | 62,961,760 | | | 32,056,435 | | | 3,270,919 | | | (314,454 | ) | | | 422,609 |
Russell Emerging Markets Fund | | | 21,218,081 | | | 2,116,035 | | | 2,503,501 | | | (119,640 | ) | | | 554,729 |
Russell Strategic Bond Fund | | | 421,964,291 | | | 32,904,439 | | | 226,605,282 | | | (2,010,069 | ) | | | 12,817,153 |
Russell Investment Grade Bond Fund | | | 209,984,844 | | | 207,928,840 | | | 252,936 | | | — | | | | 800,866 |
Russell Real Estate Securities Fund | | | 32,808,160 | | | 1,479,977 | | | 6,059,283 | | | (638,463 | ) | | | 414,100 |
| | | | | | | | | | | | | | | | |
| | $ | 1,052,602,451 | | $ | 294,669,114 | | $ | 298,142,087 | | $ | (12,211,323 | ) | | $ | 19,434,911 |
| | | | | | | | | | | | | | | | |
Balanced Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 594,018,426 | | $ | 3,168,739 | | $ | 153,266,729 | | $ | (36,933,414 | ) | | $ | 2,878,919 |
Russell U.S. Quantitative Equity Fund | | | 586,658,372 | | | 4,245,617 | | | 160,323,360 | | | (40,649,356 | ) | | | 4,230,781 |
Russell U.S. Small & Mid Cap Fund | | | 187,074,499 | | | 1,130,476 | | | 23,136,732 | | | (6,519,539 | ) | | | 1,070,540 |
Russell International Developed Markets Fund | | | 621,314,773 | | | 52,309,457 | | | 22,359,867 | | | (3,491,114 | ) | | | 20,979,266 |
Russell Global Equity Fund | | | 362,654,468 | | | 177,241,835 | | | 13,891,873 | | | (1,951,836 | ) | | | 2,444,416 |
Russell Emerging Markets Fund | | | 138,060,420 | | | 7,263,908 | | | 11,765,320 | | | (778,001 | ) | | | 3,637,163 |
Russell Strategic Bond Fund | | | 1,778,183,906 | | | 71,983,846 | | | 22,197,605 | | | 2,998,325 | | | | 40,438,911 |
Russell Real Estate Securities Fund | | | 240,924,441 | | | 3,054,905 | | | 46,312,278 | | | (14,020,512 | ) | | | 3,049,316 |
| | | | | | | | | | | | | | | | |
| | $ | 4,508,889,305 | | $ | 320,398,783 | | $ | 453,253,764 | | $ | (101,345,447 | ) | | $ | 78,729,312 |
| | | | | | | | | | | | | | | | |
Growth Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 559,922,759 | | $ | 2,745,803 | | $ | 161,642,569 | | $ | (41,468,564 | ) | | $ | 2,745,803 |
Russell U.S. Quantitative Equity Fund | | | 522,823,402 | | | 3,962,160 | | | 173,971,545 | | | (50,344,669 | ) | | | 3,824,786 |
Russell U.S. Small & Mid Cap Fund | | | 190,434,672 | | | 1,266,050 | | | 25,019,719 | | | (7,416,853 | ) | | | 1,095,485 |
Russell International Developed Markets Fund | | | 573,884,257 | | | 96,178,833 | | | 15,309,836 | | | (3,804,195 | ) | | | 17,461,771 |
Russell Global Equity Fund | | | 308,410,232 | | | 120,688,419 | | | 12,314,627 | | | (2,052,465 | ) | | | 2,503,003 |
Russell Emerging Markets Fund | | | 124,831,405 | | | 6,680,382 | | | 10,570,650 | | | (763,141 | ) | | | 3,284,902 |
Russell Strategic Bond Fund | | | 606,199,850 | | | 24,655,207 | | | 15,291,212 | | | 447,536 | | | | 13,835,835 |
Russell Real Estate Securities Fund | | | 196,388,937 | | | 2,551,140 | | | 38,111,410 | | | (13,087,309 | ) | | | 2,470,205 |
| | | | | | | | | | | | | | | | |
| | $ | 3,082,895,514 | | $ | 258,727,994 | | $ | 452,231,568 | | $ | (118,489,660 | ) | | $ | 47,221,790 |
| | | | | | | | | | | | | | | | |
| | |
| 90 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Affiliate | | Market Value | | Purchases Cost | | Sales Cost | | Realized
Gain (Loss) | | | Income
Distributions |
Equity Growth Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 332,538,392 | | $ | 1,638,911 | | $ | 89,984,452 | | $ | (22,381,972 | ) | | $ | 1,607,451 |
Russell U.S. Quantitative Equity Fund | | | 316,052,829 | | | 2,934,234 | | | 97,733,510 | | | (28,896,762 | ) | | | 2,259,273 |
Russell U.S. Small & Mid Cap Fund | | | 101,516,938 | | | 833,195 | | | 19,143,524 | | | (5,440,177 | ) | | | 600,597 |
Russell International Developed Markets Fund | | | 323,899,292 | | | 22,801,555 | | | 13,514,473 | | | (2,743,295 | ) | | | 11,062,033 |
Russell Global Equity Fund | | | 186,166,596 | | | 83,439,038 | | | 9,303,819 | | | (1,477,102 | ) | | | 1,365,205 |
Russell Emerging Markets Fund | | | 71,970,469 | | | 4,058,844 | | | 7,164,267 | | | (343,271 | ) | | | 1,908,117 |
Russell Real Estate Securities Fund | | | 103,589,038 | | | 2,091,735 | | | 28,968,956 | | | (9,598,897 | ) | | | 1,321,451 |
| | | | | | | | | | | | | | | | |
| | $ | 1,435,733,554 | | $ | 117,797,512 | | $ | 265,813,001 | | $ | (70,881,476 | ) | | $ | 20,124,127 |
| | | | | | | | | | | | | | | | |
2010 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 5,114,852 | | $ | 706,350 | | $ | 3,058,944 | | $ | (397,166 | ) | | $ | 28,454 |
Russell U.S. Quantitative Equity Fund | | | 5,578,869 | | | 766,660 | | | 2,491,282 | | | (212,448 | ) | | | 42,659 |
Russell U.S. Small & Mid Cap Fund | | | 1,429,532 | | | 190,542 | | | 587,900 | | | 19,630 | | | | 10,183 |
Russell International Developed Markets Fund | | | 5,615,747 | | | 1,363,265 | | | 1,183,162 | | | 34,337 | | | | 206,218 |
Russell Global Equity Fund | | | 4,486,395 | | | 2,711,422 | | | 604,596 | | | (46,068 | ) | | | 29,777 |
Russell Emerging Markets Fund | | | 965,533 | | | 212,894 | | | 398,651 | | | (25,984 | ) | | | 30,301 |
Russell Strategic Bond Fund | | | 32,488,269 | | | 5,282,264 | | | 19,962,402 | | | (246,070 | ) | | | 990,345 |
Russell Investment Grade Bond Fund | | | 16,233,193 | | | 16,155,822 | | | 99,877 | | | (749 | ) | | | 61,812 |
Russell Short Duration Bond Fund | | | 6,483,908 | | | 2,439,488 | | | 580,496 | | | 1,266 | | | | 93,599 |
Russell Real Estate Securities Fund | | | 2,455,880 | | | 479,991 | | | 985,000 | | | (135,947 | ) | | | 32,153 |
| | | | | | | | | | | | | | | | |
| | $ | 80,852,178 | | $ | 30,308,698 | | $ | 29,952,310 | | $ | (1,009,199 | ) | | $ | 1,525,501 |
| | | | | | | | | | | | | | | | |
2015 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 2,039,405 | | $ | 1,313,722 | | $ | 895,376 | | $ | 9,863 | | | $ | 8,927 |
Russell U.S. Quantitative Equity Fund | | | 2,248,718 | | | 1,328,881 | | | 694,800 | | | 14,897 | | | | 13,610 |
Russell U.S. Small & Mid Cap Fund | | | 741,250 | | | 394,959 | | | 186,794 | | | 5,091 | | | | 3,474 |
Russell International Developed Markets Fund | | | 2,276,755 | | | 1,512,782 | | | 505,974 | | | (1,440 | ) | | | 62,040 |
Russell Global Equity Fund | | | 1,488,859 | | | 1,151,056 | | | 167,956 | | | 1,325 | | | | 7,974 |
Russell Emerging Markets Fund | | | 505,837 | | | 316,476 | | | 131,866 | | | 705 | | | | 10,720 |
Russell Strategic Bond Fund | | | 9,783,661 | | | 7,368,975 | | | 5,276,122 | | | 85,943 | | | | 226,083 |
Russell Investment Grade Bond Fund | | | 4,393,642 | | | 4,357,007 | | | 11,414 | | | (15 | ) | | | 15,510 |
Russell Real Estate Securities Fund | | | 795,061 | | | 441,896 | | | 241,332 | | | 13,243 | | | | 8,539 |
| | | | | | | | | | | | | | | | |
| | $ | 24,273,188 | | $ | 18,185,754 | | $ | 8,111,634 | | $ | 129,612 | | | $ | 356,877 |
| | | | | | | | | | | | | | | | |
2020 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 23,921,314 | | $ | 3,648,608 | | $ | 7,709,131 | | $ | (686,096 | ) | | $ | 118,214 |
Russell U.S. Quantitative Equity Fund | | | 24,736,125 | | | 3,518,943 | | | 6,402,345 | | | (352,219 | ) | | | 175,056 |
Russell U.S. Small & Mid Cap Fund | | | 7,839,336 | | | 930,916 | | | 1,081,657 | | | 107,790 | | | | 45,336 |
Russell International Developed Markets Fund | | | 26,099,841 | | | 7,195,721 | | | 3,040,424 | | | 356,108 | | | | 881,921 |
Russell Global Equity Fund | | | 15,667,304 | | | 8,956,614 | | | 960,616 | | | 110,301 | | | | 104,058 |
Russell Emerging Markets Fund | | | 5,682,760 | | | 1,262,869 | | | 937,658 | | | (802 | ) | | | 150,127 |
Russell Strategic Bond Fund | | | 88,295,343 | | | 27,486,902 | | | 25,162,530 | | | (270,354 | ) | | | 2,058,004 |
Russell Investment Grade Bond Fund | | | 17,640,911 | | | 17,481,446 | | | 33,781 | | | (327 | ) | | | 65,178 |
Russell Real Estate Securities Fund | | | 9,596,284 | | | 1,522,427 | | | 2,643,133 | | | (494,417 | ) | | | 119,945 |
| | | | | | | | | | | | | | | | |
| | $ | 219,479,218 | | $ | 72,004,446 | | $ | 47,971,275 | | $ | (1,230,016 | ) | | $ | 3,717,839 |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 91 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Affiliate | | Market Value | | Purchases Cost | | Sales Cost | | Realized
Gain (Loss) | | | Income
Distributions |
2025 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 3,831,607 | | $ | 2,256,402 | | $ | 936,910 | | $ | 5,423 | | | $ | 15,861 |
Russell U.S. Quantitative Equity Fund | | | 3,732,237 | | | 2,246,781 | | | 985,318 | | | 5,888 | | | | 23,136 |
Russell U.S. Small & Mid Cap Fund | | | 1,217,361 | | | 628,337 | | | 217,431 | | | 5,129 | | | | 5,864 |
Russell International Developed Markets Fund | | | 4,076,285 | | | 2,604,141 | | | 360,599 | | | 65 | | | | 104,332 |
Russell Global Equity Fund | | | 2,257,611 | | | 1,676,169 | | | 155,954 | | | 1,851 | | | | 13,492 |
Russell Emerging Markets Fund | | | 871,621 | | | 516,563 | | | 129,379 | | | 203 | | | | 18,552 |
Russell Strategic Bond Fund | | | 8,715,281 | | | 5,590,218 | | | 882,759 | | | 2,958 | | | | 148,548 |
Russell Real Estate Securities Fund | | | 1,438,612 | | | 714,639 | | | 224,249 | | | 8,766 | | | | 14,983 |
| | | | | | | | | | | | | | | | |
| | $ | 26,140,615 | | $ | 16,233,250 | | $ | 3,892,599 | | $ | 30,283 | | | $ | 344,768 |
| | | | | | | | | | | | | | | | |
2030 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 35,259,971 | | $ | 4,868,326 | | $ | 7,343,960 | | $ | (1,197,612 | ) | | $ | 161,829 |
Russell U.S. Quantitative Equity Fund | | | 33,376,787 | | | 4,440,303 | | | 8,856,884 | | | (1,458,599 | ) | | | 233,529 |
Russell U.S. Small & Mid Cap Fund | | | 11,401,143 | | | 1,259,834 | | | 1,202,987 | | | (79,610 | ) | | | 62,191 |
Russell International Developed Markets Fund | | | 36,263,749 | | | 10,426,891 | | | 2,128,423 | | | 3,622 | | | | 1,083,897 |
Russell Global Equity Fund | | | 19,706,312 | | | 9,758,539 | | | 616,524 | | | 20,274 | | | | 141,772 |
Russell Emerging Markets Fund | | | 7,788,522 | | | 1,535,508 | | | 718,739 | | | 9,375 | | | | 192,655 |
Russell Strategic Bond Fund | | | 23,743,652 | | | 9,326,210 | | | 1,090,097 | | | 3,740 | | | | 433,343 |
Russell Real Estate Securities Fund | | | 11,827,142 | | | 1,686,424 | | | 2,086,965 | | | (350,959 | ) | | | 140,163 |
| | | | | | | | | | | | | | | | |
| | $ | 179,367,278 | | $ | 43,302,035 | | $ | 24,044,579 | | $ | (3,049,769 | ) | | $ | 2,449,379 |
| | | | | | | | | | | | | | | | |
2035 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 3,072,266 | | $ | 1,608,767 | | $ | 356,835 | | $ | (13,973 | ) | | $ | 12,012 |
Russell U.S. Quantitative Equity Fund | | | 2,917,772 | | | 1,620,590 | | | 476,827 | | | (10,852 | ) | | | 17,388 |
Russell U.S. Small & Mid Cap Fund | | | 971,284 | | | 409,252 | | | 24,306 | | | 3,788 | | | | 4,284 |
Russell International Developed Markets Fund | | | 3,128,608 | | | 1,876,107 | | | 35,883 | | | 4,924 | | | | 75,525 |
Russell Global Equity Fund | | | 1,720,572 | | | 1,201,230 | | | 7,101 | | | 2,640 | | | | 9,844 |
Russell Emerging Markets Fund | | | 674,934 | | | 354,500 | | | 20,464 | | | 2,160 | | | | 13,355 |
Russell Strategic Bond Fund | | | 1,536,178 | | | 934,793 | | | 127,044 | | | 975 | | | | 26,496 |
Russell Real Estate Securities Fund | | | 1,001,593 | | | 457,557 | | | 77,838 | | | 879 | | | | 10,163 |
| | | | | | | | | | | | | | | | |
| | $ | 15,023,207 | | $ | 8,462,796 | | $ | 1,126,298 | | $ | (9,459 | ) | | $ | 169,067 |
| | | | | | | | | | | | | | | | |
2040 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 28,195,942 | | $ | 4,358,395 | | $ | 4,300,056 | | $ | (811,238 | ) | | $ | 127,284 |
Russell U.S. Quantitative Equity Fund | | | 26,750,793 | | | 4,514,528 | | | 5,940,866 | | | (1,071,289 | ) | | | 183,408 |
Russell U.S. Small & Mid Cap Fund | | | 9,000,543 | | | 1,139,226 | | | 610,210 | | | (14,392 | ) | | | 48,838 |
Russell International Developed Markets Fund | | | 28,686,184 | | | 8,245,798 | | | 295,859 | | | 8,188 | | | | 848,877 |
Russell Global Equity Fund | | | 15,781,045 | | | 8,002,558 | | | 146,908 | | | 7,401 | | | | 110,856 |
Russell Emerging Markets Fund | | | 6,199,878 | | | 1,310,358 | | | 310,462 | | | 12,100 | | | | 150,753 |
Russell Strategic Bond Fund | | | 14,058,833 | | | 3,597,005 | | | 852,585 | | | (5,491 | ) | | | 292,659 |
Russell Real Estate Securities Fund | | | 9,354,059 | | | 1,358,259 | | | 1,010,985 | | | (75,318 | ) | | | 109,766 |
| | | | | | | | | | | | | | | | |
| | $ | 138,027,277 | | $ | 32,526,127 | | $ | 13,467,931 | | $ | (1,950,039 | ) | | $ | 1,872,441 |
| | | | | | | | | | | | | | | | |
| | |
| 92 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | |
| Affiliate | | Market Value | | Purchases Cost | | Sales Cost | | Realized
Gain (Loss) | | | Income
Distributions |
2045 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 1,740,852 | | $ | 841,063 | | $ | 476,882 | | $ | (46,642 | ) | | $ | 6,814 |
Russell U.S. Quantitative Equity Fund | | | 1,654,443 | | | 836,323 | | | 531,598 | | | (43,762 | ) | | | 9,873 |
Russell U.S. Small & Mid Cap Fund | | | 552,508 | | | 227,980 | | | 98,193 | | | (2,327 | ) | | | 2,422 |
Russell International Developed Markets Fund | | | 1,778,681 | | | 985,956 | | | 202,710 | | | 2,968 | | | | 42,483 |
Russell Global Equity Fund | | | 975,827 | | | 668,568 | | | 84,025 | | | (4,049 | ) | | | 5,545 |
Russell Emerging Markets Fund | | | 382,788 | | | 185,483 | | | 57,442 | | | (426 | ) | | | 7,553 |
Russell Strategic Bond Fund | | | 861,943 | | | 451,637 | | | 134,053 | | | (223 | ) | | | 15,554 |
Russell Real Estate Securities Fund | | | 572,209 | | | 252,112 | | | 120,733 | | | (1,223 | ) | | | 5,751 |
| | | | | | | | | | | | | | | | |
| | $ | 8,519,251 | | $ | 4,449,122 | | $ | 1,705,636 | | $ | (95,684 | ) | | $ | 95,995 |
| | | | | | | | | | | | | | | | |
2050 Strategy Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 3,485,709 | | $ | 1,203,923 | | $ | 635,790 | | $ | (1,939 | ) | | $ | 14,125 |
Russell U.S. Quantitative Equity Fund | | | 3,314,128 | | | 1,221,706 | | | 767,979 | | | 7,669 | | | | 20,284 |
Russell U.S. Small & Mid Cap Fund | | | 1,104,604 | | | 316,940 | | | 125,521 | | | 933 | | | | 5,088 |
Russell International Developed Markets Fund | | | 3,571,798 | | | 1,657,784 | | | 300,257 | | | (3,953 | ) | | | 90,002 |
Russell Global Equity Fund | | | 1,956,017 | | | 1,212,428 | | | 105,687 | | | 40 | | | | 11,711 |
Russell Emerging Markets Fund | | | 766,083 | | | 294,920 | | | 90,033 | | | 207 | | | | 15,932 |
Russell Strategic Bond Fund | | | 1,710,554 | | | 732,904 | | | 197,704 | | | 779 | | | | 32,527 |
Russell Real Estate Securities Fund | | | 1,140,300 | | | 369,066 | | | 179,051 | | | 3,895 | | | | 11,887 |
| | | | | | | | | | | | | | | | |
| | $ | 17,049,193 | | $ | 7,009,671 | | $ | 2,402,022 | | $ | 7,631 | | | $ | 201,556 |
| | | | | | | | | | | | | | | | |
In Retirement Fund | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 331,054 | | $ | 146,933 | | $ | 124,339 | | $ | 838 | | | $ | 1,526 |
Russell U.S. Quantitative Equity Fund | | | 360,608 | | | 144,859 | | | 92,978 | | | 515 | | | | 2,322 |
Russell U.S. Small & Mid Cap Fund | | | 92,629 | | | 31,771 | | | 14,627 | | | 877 | | | | 453 |
Russell International Developed Markets Fund | | | 360,430 | | | 164,335 | | | 31,570 | | | (320 | ) | | | 9,858 |
Russell Global Equity Fund | | | 291,233 | | | 206,091 | | | 21,078 | | | 373 | | | | 1,473 |
Russell Emerging Markets Fund | | | 62,585 | | | 26,455 | | | 8,167 | | | 89 | | | | 1,332 |
Russell Strategic Bond Fund | | | 2,088,676 | | | 1,145,538 | | | 1,163,009 | | | 21,189 | | | | 55,156 |
Russell Investment Grade Bond Fund | | | 1,042,751 | | | 1,097,625 | | | 66,466 | | | 120 | | | | 4,115 |
Russell Short Duration Bond Fund | | | 416,138 | | | 170,436 | | | 29,921 | | | 22 | | | | 6,155 |
Russell Real Estate Securities Fund | | | 157,811 | | | 58,469 | | | 33,608 | | | 2,098 | | | | 1,762 |
| | | | | | | | | | | | | | | | |
| | $ | 5,203,915 | | $ | 3,192,512 | | $ | 1,585,763 | | $ | 25,801 | | | $ | 84,152 |
| | | | | | | | | | | | | | | | |
At October 31, 2009, 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:
| | | | | | | | | |
| | | 10/31/16 | | 10/31/17 | | Totals |
| | | | | | | | | |
Conservative Strategy Fund | | $ | — | | $ | 8,325,200 | | $ | 8,325,200 |
Moderate Strategy Fund | | | — | | | 23,939,127 | | | 23,939,127 |
Balanced Strategy Fund | | | — | | | 172,806,304 | | | 172,806,304 |
Growth Strategy Fund | | | — | | | 155,925,848 | | | 155,925,848 |
Equity Growth Strategy Fund | | | — | | | 103,749,875 | | | 103,749,875 |
2010 Strategy Fund | | | — | | | 148,457 | | | 148,457 |
2015 Strategy Fund | | | — | | | 13,252 | | | 13,252 |
2020 Strategy Fund | | | 877,647 | | | 514,173 | | | 1,391,820 |
2025 Strategy Fund | | | 58,200 | | | 6,683 | | | 64,883 |
2030 Strategy Fund | | | 2,808,872 | | | 363,900 | | | 3,172,772 |
2035 Strategy Fund | | | 67,681 | | | — | | | 67,681 |
2040 Strategy Fund | | | 1,932,184 | | | 213,750 | | | 2,145,934 |
2045 Strategy Fund | | | 5,856 | | | — | | | 5,856 |
2050 Strategy Fund | | | — | | | — | | | — |
In Retirement Fund | | | 1,412 | | | 5,338 | | | 6,750 |
| | |
| Notes to Financial Statements | | 93 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
At April 30, 2010, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Conservative Strategy Fund | | | Moderate Strategy Fund | | | Balanced Strategy Fund | | | Growth Strategy Fund | | | Equity Growth Strategy Fund | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 577,264,549 | | | $ | 1,037,864,199 | | | $ | 4,600,718,132 | | | $ | 3,271,238,283 | | | $ | 1,607,065,429 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 29,603,762 | | | $ | 20,245,254 | | | $ | 618,118,602 | | | $ | 106,229,098 | | | $ | 57,315,364 | |
Unrealized Depreciation | | | — | | | | (5,507,003 | ) | | | (709,947,429 | ) | | | (294,571,867 | ) | | | (228,647,239 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 29,603,762 | | | $ | 14,738,251 | | | $ | (91,828,827 | ) | | $ | (188,342,768 | ) | | $ | (171,331,875 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2010 Strategy Fund | | | 2015 Strategy Fund | | | 2020 Strategy Fund | | | 2025 Strategy Fund | | | 2030 Strategy Fund | |
Cost of Investments | | $ | 76,213,287 | | | $ | 21,739,397 | | | $ | 208,475,393 | | | $ | 23,298,696 | | | $ | 173,116,054 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 4,822,604 | | | $ | 2,533,791 | | | $ | 11,982,037 | | | $ | 2,841,918 | | | $ | 8,070,305 | |
Unrealized Depreciation | | | (183,714 | ) | | | — | | | | (978,213 | ) | | | — | | | | (1,819,080 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 4,638,891 | | | $ | 2,533,791 | | | $ | 11,003,825 | | | $ | 2,841,918 | | | $ | 6,251,225 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2035 Strategy Fund | | | 2040 Strategy Fund | | | 2045 Strategy Fund | | | 2050 Strategy Fund | | | In Retirement Fund | |
Cost of Investments | | $ | 13,287,734 | | | $ | 131,006,569 | | | $ | 7,620,668 | | | $ | 13,627,294 | | | $ | 4,476,343 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 1,735,473 | | | $ | 8,284,999 | | | $ | 898,583 | | | $ | 3,421,899 | | | $ | 727,572 | |
Unrealized Depreciation | | | — | | | | (1,264,291 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 1,735,473 | | | $ | 7,020,708 | | | $ | 898,583 | | | $ | 3,421,899 | | | $ | 727,572 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| 94 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) |
Share transactions for the periods ended April 30, 2010 and October 31, 2009 were as follows:
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Conservative Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,851 | | | 4,723 | | | $ | 18,619 | | | $ | 40,952 | |
Proceeds from reinvestment of distributions | | 130 | | | 354 | | | | 1,299 | | | | 3,087 | |
Payments for shares redeemed | | (1,386 | ) | | (3,772 | ) | | | (13,916 | ) | | | (32,873 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 595 | | | 1,305 | | | | 6,002 | | | | 11,166 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 3,799 | | | 6,476 | | | | 37,989 | | | | 56,762 | |
Proceeds from reinvestment of distributions | | 178 | | | 478 | | | | 1,770 | | | | 4,131 | |
Payments for shares redeemed | | (1,920 | ) | | (5,059 | ) | | | (19,223 | ) | | | (44,182 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 2,057 | | | 1,895 | | | | 20,536 | | | | 16,711 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,495 | | | 3,302 | | | | 15,062 | | | | 29,261 | |
Proceeds from reinvestment of distributions | | 143 | | | 400 | | | | 1,428 | | | | 3,491 | |
Payments for shares redeemed | | (1,246 | ) | | (3,340 | ) | | | (12,570 | ) | | | (29,586 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 392 | | | 362 | | | | 3,920 | | | | 3,166 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 319 | | | 623 | | | | 3,259 | | | | 5,578 | |
Proceeds from reinvestment of distributions | | 16 | | | 29 | | | | 158 | | | | 259 | |
Payments for shares redeemed | | (140 | ) | | (216 | ) | | | (1,422 | ) | | | (1,947 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 195 | | | 436 | | | | 1,995 | | | | 3,890 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 155 | | | 288 | | | | 1,557 | | | | 2,532 | |
Proceeds from reinvestment of distributions | | 9 | | | 31 | | | | 90 | | | | 268 | |
Payments for shares redeemed | | (103 | ) | | (501 | ) | | | (1,034 | ) | | | (4,440 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 61 | | | (182 | ) | | | 613 | | | | (1,640 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,075 | | | 3,789 | | | | 20,982 | | | | 33,998 | |
Proceeds from reinvestment of distributions | | 301 | | | 881 | | | | 3,023 | | | | 7,704 | |
Payments for shares redeemed | | (1,866 | ) | | (5,014 | ) | | | (18,835 | ) | | | (44,448 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 510 | | | (344 | ) | | | 5,170 | | | | (2,746 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,541 | | | 5,136 | | | | 25,600 | | | | 44,609 | |
Proceeds from reinvestment of distributions | | 136 | | | 321 | | | | 1,369 | | | | 2,822 | |
Payments for shares redeemed | | (1,169 | ) | | (4,059 | ) | | | (11,878 | ) | | | (35,544 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,508 | | | 1,398 | | | | 15,091 | | | | 11,887 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 5,318 | | | 4,870 | | | $ | 53,327 | | | $ | 42,434 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 95 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Moderate Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 3,020 | | | 5,697 | | | $ | 30,151 | | | $ | 47,422 | |
Proceeds from reinvestment of distributions | | 306 | | | 970 | | | | 3,016 | | | | 7,970 | |
Payments for shares redeemed | | (2,701 | ) | | (6,624 | ) | | | (26,898 | ) | | | (54,172 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 625 | | | 43 | | | | 6,269 | | | | 1,220 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 4,073 | | | 8,578 | | | | 40,194 | �� | | | 72,091 | |
Proceeds from reinvestment of distributions | | 322 | | | 1,064 | | | | 3,159 | | | | 8,638 | |
Payments for shares redeemed | | (2,689 | ) | | (9,410 | ) | | | (26,617 | ) | | | (77,484 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,706 | | | 232 | | | | 16,736 | | | | 3,245 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,480 | | | 3,955 | | | | 14,747 | | | | 33,161 | |
Proceeds from reinvestment of distributions | | 272 | | | 928 | | | | 2,686 | | | | 7,619 | |
Payments for shares redeemed | | (1,674 | ) | | (6,061 | ) | | | (16,636 | ) | | | (50,993 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 78 | | | (1,178 | ) | | | 797 | | | | (10,213 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 503 | | | 1,302 | | | | 5,076 | | | | 11,295 | |
Proceeds from reinvestment of distributions | | 30 | | | 39 | | | | 295 | | | | 331 | |
Payments for shares redeemed | | (265 | ) | | (200 | ) | | | (2,654 | ) | | | (1,733 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 268 | | | 1,141 | | | | 2,717 | | | | 9,893 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 172 | | | 284 | | | | 1,715 | | | | 2,334 | |
Proceeds from reinvestment of distributions | | 10 | | | 72 | | | | 101 | | | | 581 | |
Payments for shares redeemed | | (149 | ) | | (1,258 | ) | | | (1,465 | ) | | | (10,699 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 33 | | | (902 | ) | | | 351 | | | | (7,784 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,871 | | | 4,401 | | | | 18,644 | | | | 37,733 | |
Proceeds from reinvestment of distributions | | 458 | | | 1,614 | | | | 4,534 | | | | 13,266 | |
Payments for shares redeemed | | (3,803 | ) | | (8,141 | ) | | | (37,652 | ) | | | (68,282 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (1,474 | ) | | (2,126 | ) | | | (14,474 | ) | | | (17,283 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,467 | | | 8,322 | | | | 24,650 | | | | 68,947 | |
Proceeds from reinvestment of distributions | | 213 | | | 610 | | | | 2,109 | | | | 5,050 | |
Payments for shares redeemed | | (2,892 | ) | | (7,168 | ) | | | (28,699 | ) | | | (59,016 | ) |
| | | | | | | | | | | | | | |
Net increase( decrease) | | (212 | ) | | 1,764 | | | | (1,940 | ) | | | 14,981 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 1,024 | | | (1,026 | ) | | $ | 10,456 | | | $ | (5,941 | ) |
| | | | | | | | | | | | | | |
| | |
| 96 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Balanced Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 9,071 | | | 18,181 | | | $ | 87,250 | | | $ | 146,658 | |
Proceeds from reinvestment of distributions | | 1,705 | | | 8,357 | | | | 16,310 | | | | 63,398 | |
Payments for shares redeemed | | (11,829 | ) | | (30,382 | ) | | | (114,007 | ) | | | (233,557 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (1,053 | ) | | (3,844 | ) | | | (10,447 | ) | | | (23,501 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 12,795 | | | 23,682 | | | | 122,271 | | | | 188,225 | |
Proceeds from reinvestment of distributions | | 1,634 | | | 9,316 | | | | 15,464 | | | | 69,762 | |
Payments for shares redeemed | | (14,705 | ) | | (42,400 | ) | | | (140,257 | ) | | | (329,035 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (276 | ) | | (9,402 | ) | | | (2,522 | ) | | | (71,048 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 5,031 | | | 9,494 | | | | 48,358 | | | | 75,023 | |
Proceeds from reinvestment of distributions | | 882 | | | 4,506 | | | | 8,463 | | | | 34,258 | |
Payments for shares redeemed | | (5,205 | ) | | (17,653 | ) | | | (50,373 | ) | | | (141,171 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 708 | | | (3,653 | ) | | | 6,448 | | | | (31,890 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,601 | | | 5,028 | | | | 15,581 | | | | 41,332 | |
Proceeds from reinvestment of distributions | | 113 | | | 275 | | | | 1,090 | | | | 2,131 | |
Payments for shares redeemed | | (657 | ) | | (1,863 | ) | | | (6,356 | ) | | | (14,911 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,057 | | | 3,440 | | | | 10,315 | | | | 28,552 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 578 | | | 1,944 | | | | 5,545 | | | | 15,131 | |
Proceeds from reinvestment of distributions | | 45 | | | 410 | | | | 430 | | | | 3,093 | |
Payments for shares redeemed | | (772 | ) | | (4,311 | ) | | | (7,348 | ) | | | (34,769 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (149 | ) | | (1,957 | ) | | | (1,373 | ) | | | (16,545 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 4,452 | | | 11,625 | | | | 42,779 | | | | 93,353 | |
Proceeds from reinvestment of distributions | | 1,334 | | | 7,325 | | | | 12,786 | | | | 55,561 | |
Payments for shares redeemed | | (9,139 | ) | | (25,482 | ) | | | (87,378 | ) | | | (202,304 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (3,353 | ) | | (6,532 | ) | | | (31,813 | ) | | | (53,390 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 7,317 | | | 23,241 | | | | 71,004 | | | | 185,020 | |
Proceeds from reinvestment of distributions | | 924 | | | 4,444 | | | | 8,918 | | | | 34,056 | |
Payments for shares redeemed | | (7,713 | ) | | (27,949 | ) | | | (74,616 | ) | | | (218,591 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 528 | | | (264 | ) | | | 5,306 | | | | 485 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (2,538 | ) | | (22,212 | ) | | $ | (24,086 | ) | | $ | (167,337 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 97 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Growth Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 5,232 | | | 13,443 | | | $ | 47,282 | | | $ | 98,027 | |
Proceeds from reinvestment of distributions | | 1,165 | | | 8,812 | | | | 10,423 | | | | 60,070 | |
Payments for shares redeemed | | (8,444 | ) | | (25,248 | ) | | | (75,815 | ) | | | (179,384 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,047 | ) | | (2,993 | ) | | | (18,110 | ) | | | (21,287 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 6,844 | | | 17,727 | | | | 61,197 | | | | 127,822 | |
Proceeds from reinvestment of distributions | | 934 | | | 8,584 | | | | 8,232 | | | | 57,789 | |
Payments for shares redeemed | | (10,749 | ) | | (28,933 | ) | | | (95,697 | ) | | | (206,120 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,971 | ) | | (2,622 | ) | | | (26,268 | ) | | | (20,509 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,876 | | | 7,287 | | | | 25,895 | | | | 52,841 | |
Proceeds from reinvestment of distributions | | 622 | | | 4,774 | | | | 5,576 | | | | 32,589 | |
Payments for shares redeemed | | (4,098 | ) | | (12,777 | ) | | | (36,957 | ) | | | (92,766 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (600 | ) | | (716 | ) | | | (5,486 | ) | | | (7,336 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 606 | | | 2,239 | | | | 5,556 | | | | 16,950 | |
Proceeds from reinvestment of distributions | | 44 | | | 191 | | | | 393 | | | | 1,324 | |
Payments for shares redeemed | | (682 | ) | | (1,226 | ) | | | (6,228 | ) | | | (8,812 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (32 | ) | | 1,204 | | | | (279 | ) | | | 9,462 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 381 | | | 992 | | | | 3,462 | | | | 7,222 | |
Proceeds from reinvestment of distributions | | 28 | | | 300 | | | | 249 | | | | 2,043 | |
Payments for shares redeemed | | (214 | ) | | (2,092 | ) | | | (1,952 | ) | | | (15,230 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 195 | | | (800 | ) | | | 1,759 | | | | (5,965 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 3,224 | | | 7,638 | | | | 28,984 | | | | 55,732 | |
Proceeds from reinvestment of distributions | | 882 | | | 7,205 | | | | 7,909 | | | | 49,214 | |
Payments for shares redeemed | | (6,852 | ) | | (15,995 | ) | | | (61,278 | ) | | | (116,532 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,746 | ) | | (1,152 | ) | | | (24,385 | ) | | | (11,586 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 4,332 | | | 14,081 | | | | 39,523 | | | | 101,526 | |
Proceeds from reinvestment of distributions | | 505 | | | 3,575 | | | | 4,561 | | | | 24,608 | |
Payments for shares redeemed | | (4,872 | ) | | (16,752 | ) | | | (44,227 | ) | | | (120,801 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (35 | ) | | 904 | | | | (143 | ) | | | 5,333 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (8,236 | ) | | (6,175 | ) | | $ | (72,912 | ) | | $ | (51,888 | ) |
| | | | | | | | | | | | | | |
| | |
| 98 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| Equity Growth Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,081 | | | 7,232 | | | $ | 17,371 | | | $ | 46,943 | |
Proceeds from reinvestment of distributions | | 340 | | | 3,134 | | | | 2,825 | | | | 19,347 | |
Payments for shares redeemed | | (4,018 | ) | | (9,948 | ) | | | (33,661 | ) | | | (64,627 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (1,597 | ) | | 418 | | | | (13,465 | ) | | | 1,663 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | |
Proceeds from shares sold | | 3,747 | | | 11,174 | | | | 29,458 | | | | 68,315 | |
Proceeds from reinvestment of distributions | | 540 | | | 5,335 | | | | 4,173 | | | | 30,859 | |
Payments for shares redeemed | | (6,380 | ) | | (16,367 | ) | | | (49,924 | ) | | | (101,325 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,093 | ) | | 142 | | | | (16,293 | ) | | | (2,151 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,559 | | | 5,453 | | | | 12,896 | | | | 34,996 | |
Proceeds from reinvestment of distributions | | 251 | | | 2,478 | | | | 2,042 | | | | 14,977 | |
Payments for shares redeemed | | (3,991 | ) | | (8,078 | ) | | | (32,712 | ) | | | (52,662 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,181 | ) | | (147 | ) | | | (17,774 | ) | | | (2,689 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 254 | | | 1,540 | | | | 2,151 | | | | 10,924 | |
Proceeds from reinvestment of distributions | | 24 | | | 90 | | | | 201 | | | | 553 | |
Payments for shares redeemed | | (275 | ) | | (504 | ) | | | (2,298 | ) | | | (3,484 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 3 | | | 1,126 | | | | 54 | | | | 7,993 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 276 | | | 1,185 | | | | 2,299 | | | | 7,669 | |
Proceeds from reinvestment of distributions | | 29 | | | 364 | | | | 239 | | | | 2,202 | |
Payments for shares redeemed | | (782 | ) | | (1,703 | ) | | | (6,327 | ) | | | (11,434 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (477 | ) | | (154 | ) | | | (3,789 | ) | | | (1,563 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,862 | | | 5,810 | | | | 15,270 | | | | 37,840 | |
Proceeds from reinvestment of distributions | | 422 | | | 4,077 | | | | 3,407 | | | | 24,555 | |
Payments for shares redeemed | | (4,617 | ) | | (10,330 | ) | | | (37,609 | ) | | | (66,977 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (2,333 | ) | | (443 | ) | | | (18,932 | ) | | | (4,582 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,869 | | | 10,403 | | | | 24,099 | | | | 68,014 | |
Proceeds from reinvestment of distributions | | 291 | | | 2,831 | | | | 2,419 | | | | 17,427 | |
Payments for shares redeemed | | (3,805 | ) | | (18,152 | ) | | | (32,050 | ) | | | (115,613 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (645 | ) | | (4,918 | ) | | | (5,532 | ) | | | (30,172 | ) |
| | | | | | | | | | | | | | |
Total increase (decrease) | | (9,323 | ) | | (3,976 | ) | | $ | (75,731 | ) | | $ | (31,501 | ) |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 99 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2010 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | — | | | 5 | | | $ | — | | | $ | 40 | |
Proceeds from reinvestment of distributions | | 2 | | | 4 | | | | 20 | | | | 37 | |
Payments for shares redeemed | | (11 | ) | | (9 | ) | | | (107 | ) | | | (75 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (9 | ) | | — | | | | (87 | ) | | | 2 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 87 | | | 221 | | | | 870 | | | | 1,885 | |
Proceeds from reinvestment of distributions | | 10 | | | 20 | | | | 98 | | | | 168 | |
Payments for shares redeemed | | (100 | ) | | (330 | ) | | | (989 | ) | | | (2,768 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (3 | ) | | (89 | ) | | | (21 | ) | | | (715 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 428 | | | 1,237 | | | | 4,279 | | | | 10,776 | |
Proceeds from reinvestment of distributions | | 35 | | | 48 | | | | 349 | | | | 414 | |
Payments for shares redeemed | | (489 | ) | | (315 | ) | | | (4,908 | ) | | | (2,667 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (26 | ) | | 970 | | | | (280 | ) | | | 8,523 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 401 | | | 1,510 | | | | 3,989 | | | | 12,535 | |
Proceeds from reinvestment of distributions | | 26 | | | 51 | | | | 262 | | | | 427 | |
Payments for shares redeemed | | (115 | ) | | (1,147 | ) | | | (1,150 | ) | | | (9,977 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 312 | | | 414 | | | | 3,101 | | | | 2,985 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 733 | | | 2,777 | | | | 7,311 | | | | 23,690 | |
Proceeds from reinvestment of distributions | | 55 | | | 85 | | | | 543 | | | | 724 | |
Payments for shares redeemed | | (649 | ) | | (1,452 | ) | | | (6,446 | ) | | | (12,450 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 139 | | | 1,410 | | | | 1,408 | | | | 11,964 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 158 | | | 306 | | | | 1,578 | | | | 2,627 | |
Proceeds from reinvestment of distributions | | 17 | | | 35 | | | | 166 | | | | 299 | |
Payments for shares redeemed | | (451 | ) | | (251 | ) | | | (4,480 | ) | | | (2,153 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (276 | ) | | 90 | | | | (2,736 | ) | | | 773 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 137 | | | 2,795 | | | $ | 1,385 | | | $ | 23,532 | |
| | | | | | | | | | | | | | |
| | |
| 100 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2015 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 794 | | | 483 | | | $ | 7,322 | | | $ | 4,138 | |
Proceeds from reinvestment of distributions | | 15 | | | 4 | | | | 138 | | | | 33 | |
Payments for shares redeemed | | (379 | ) | | (17 | ) | | | (3,537 | ) | | | (138 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 430 | | | 470 | | | | 3,923 | | | | 4,033 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 466 | | | 231 | | | | 4,349 | | | | 1,837 | |
Proceeds from reinvestment of distributions | | 9 | | | 3 | | | | 82 | | | | 26 | |
Payments for shares redeemed | | (80 | ) | | (46 | ) | | | (752 | ) | | | (360 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 395 | | | 188 | | | | 3,679 | | | | 1,503 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 367 | | | 738 | | | | 3,457 | | | | 5,646 | |
Proceeds from reinvestment of distributions | | 14 | | | 11 | | | | 127 | | | | 88 | |
Payments for shares redeemed | | (129 | ) | | (66 | ) | | | (1,200 | ) | | | (514 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 252 | | | 683 | | | | 2,384 | | | | 5,220 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 1,077 | | | 1,341 | | | $ | 9,986 | | | $ | 10,756 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 101 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2020 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 93 | | | — | | | $ | 961 | | | $ | 2 | |
Proceeds from reinvestment of distributions | | 3 | | | 5 | | | | 26 | | | | 34 | |
Payments for shares redeemed | | (17 | ) | | (17 | ) | | | (170 | ) | | | (122 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 79 | | | (12 | ) | | | 817 | | | | (86 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 225 | | | 548 | | | | 2,228 | | | | 4,471 | |
Proceeds from reinvestment of distributions | | 23 | | | 30 | | | | 225 | | | | 249 | |
Payments for shares redeemed | | (80 | ) | | (209 | ) | | | (784 | ) | | | (1,701 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 168 | | | 369 | | | | 1,669 | | | | 3,019 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,747 | | | 3,491 | | | | 17,249 | | | | 29,636 | |
Proceeds from reinvestment of distributions | | 95 | | | 96 | | | | 934 | | | | 803 | |
Payments for shares redeemed | | (1,466 | ) | | (992 | ) | | | (14,484 | ) | | | (8,208 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 376 | | | 2,595 | | | | 3,699 | | | | 22,231 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,227 | | | 3,791 | | | | 12,121 | | | | 29,119 | |
Proceeds from reinvestment of distributions | | 59 | | | 100 | | | | 585 | | | | 800 | |
Payments for shares redeemed | | (280 | ) | | (3,333 | ) | | | (2,786 | ) | | | (27,232 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 1,006 | | | 558 | | | | 9,920 | | | | 2,687 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 2,169 | | | 5,413 | | | | 21,465 | | | | 43,888 | |
Proceeds from reinvestment of distributions | | 137 | | | 163 | | | | 1,348 | | | | 1,335 | |
Payments for shares redeemed | | (1,325 | ) | | (2,080 | ) | | | (13,033 | ) | | | (16,953 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 981 | | | 3,496 | | | | 9,780 | | | | 28,270 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 355 | | | 968 | | | | 3,521 | | | | 8,008 | |
Proceeds from reinvestment of distributions | | 39 | | | 55 | | | | 379 | | | | 450 | |
Payments for shares redeemed | | (457 | ) | | (536 | ) | | | (4,504 | ) | | | (4,516 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (63 | ) | | 487 | | | | (604 | ) | | | 3,942 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 2,547 | | | 7,493 | | | $ | 25,281 | | | $ | 60,063 | |
| | | | | | | | | | | | | | |
| | |
| 102 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2025 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 825 | | | 451 | | | $ | 7,160 | | | $ | 3,625 | |
Proceeds from reinvestment of distributions | | 15 | | | 2 | | | | 133 | | | | 19 | |
Payments for shares redeemed | | (279 | ) | | (19 | ) | | | (2,447 | ) | | | (141 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 561 | | | 434 | | | | 4,846 | | | | 3,503 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 709 | | | 415 | | | | 6,209 | | | | 3,061 | |
Proceeds from reinvestment of distributions | | 11 | | | 3 | | | | 98 | | | | 20 | |
Payments for shares redeemed | | (298 | ) | | (64 | ) | | | (2,622 | ) | | | (447 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 422 | | | 354 | | | | 3,685 | | | | 2,634 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 517 | | | 622 | | | | 4,609 | | | | 4,328 | |
Proceeds from reinvestment of distributions | | 11 | | | 6 | | | | 98 | | | | 40 | |
Payments for shares redeemed | | (103 | ) | | (56 | ) | | | (901 | ) | | | (413 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 425 | | | 572 | | | | 3,806 | | | | 3,955 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 1,408 | | | 1,360 | | | $ | 12,337 | | | $ | 10,092 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 103 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2030 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1 | | | 2 | | | $ | 8 | | | $ | 8 | |
Proceeds from reinvestment of distributions | | 1 | | | 1 | | | | 11 | | | | 9 | |
Payments for shares redeemed | | (29 | ) | | (72 | ) | | | (263 | ) | | | (477 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (27 | ) | | (69 | ) | | | (244 | ) | | | (460 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 238 | | | 559 | | | | 2,193 | | | | 4,057 | |
Proceeds from reinvestment of distributions | | 19 | | | 16 | | | | 171 | | | | 113 | |
Payments for shares redeemed | | (95 | ) | | (385 | ) | | | (888 | ) | | | (2,917 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 162 | | | 190 | | | | 1,476 | | | | 1,253 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 791 | | | 2,663 | | | | 7,239 | | | | 20,310 | |
Proceeds from reinvestment of distributions | | 62 | | | 35 | | | | 562 | | | | 260 | |
Payments for shares redeemed | | (604 | ) | | (438 | ) | | | (5,660 | ) | | | (3,293 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 249 | | | 2,260 | | | | 2,141 | | | | 17,277 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,311 | | | 3,248 | | | | 11,997 | | | | 22,599 | |
Proceeds from reinvestment of distributions | | 47 | | | 47 | | | | 428 | | | | 332 | |
Payments for shares redeemed | | (379 | ) | | (2,550 | ) | | | (3,491 | ) | | | (19,582 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 979 | | | 745 | | | | 8,934 | | | | 3,349 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,904 | | | 4,934 | | | | 17,561 | | | | 35,325 | |
Proceeds from reinvestment of distributions | | 92 | | | 59 | | | | 832 | | | | 418 | |
Payments for shares redeemed | | (1,114 | ) | | (1,996 | ) | | | (10,240 | ) | | | (14,462 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 882 | | | 2,997 | | | | 8,153 | | | | 21,281 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 407 | | | 841 | | | | 3,740 | | | | 6,090 | |
Proceeds from reinvestment of distributions | | 30 | | | 26 | | | | 273 | | | | 184 | |
Payments for shares redeemed | | (235 | ) | | (413 | ) | | | (2,141 | ) | | | (3,113 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 202 | | | 454 | | | | 1,872 | | | | 3,161 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 2,447 | | | 6,577 | | | $ | 22,332 | | | $ | 45,861 | |
| | | | | | | | | | | | | | |
| | |
| 104 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2035 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 318 | | | 207 | | | $ | 2,672 | | | $ | 1,574 | |
Proceeds from reinvestment of distributions | | 7 | | | 1 | | | | 60 | | | | 9 | |
Payments for shares redeemed | | (33 | ) | | (27 | ) | | | (283 | ) | | | (184 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 292 | | | 181 | | | | 2,449 | | | | 1,399 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 487 | | | 230 | | | | 4,114 | | | | 1,585 | |
Proceeds from reinvestment of distributions | | 6 | | | 1 | | | | 54 | | | | 8 | |
Payments for shares redeemed | | (159 | ) | | (22 | ) | | | (1,358 | ) | | | (158 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 334 | | | 209 | | | | 2,810 | | | | 1,435 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 283 | | | 386 | | | | 2,444 | | | | 2,474 | |
Proceeds from reinvestment of distributions | | 5 | | | 2 | | | | 46 | | | | 13 | |
Payments for shares redeemed | | (45 | ) | | (43 | ) | | | (380 | ) | | | (274 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 243 | | | 345 | | | | 2,110 | | | | 2,213 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 869 | | | 735 | | | $ | 7,369 | | | $ | 5,047 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 105 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2040 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Proceeds from shares sold | | 5 | | | 8 | | | $ | 43 | | | $ | 50 | |
Proceeds from reinvestment of distributions | | 1 | | | 1 | | | | 11 | | | | 8 | |
Payments for shares redeemed | | (10 | ) | | (33 | ) | | | (96 | ) | | | (206 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (4 | ) | | (24 | ) | | | (42 | ) | | | (148 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | |
Proceeds from shares sold | | 843 | | | 434 | | | | 7,738 | | | | 3,139 | |
Proceeds from reinvestment of distributions | | 21 | | | 10 | | | | 196 | | | | 74 | |
Payments for shares redeemed | | (98 | ) | | (227 | ) | | | (902 | ) | | | (1,804 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 766 | | | 217 | | | | 7,032 | | | | 1,409 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 663 | | | 2,128 | | | | 6,133 | | | | 16,161 | |
Proceeds from reinvestment of distributions | | 39 | | | 21 | | | | 354 | | | | 156 | |
Payments for shares redeemed | | (437 | ) | | (486 | ) | | | (4,081 | ) | | | (3,611 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 265 | | | 1,663 | | | | 2,406 | | | | 12,706 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 836 | | | 2,715 | | | | 7,698 | | | | 19,096 | |
Proceeds from reinvestment of distributions | | 38 | | | 38 | | | | 348 | | | | 266 | |
Payments for shares redeemed | | (237 | ) | | (1,731 | ) | | | (2,197 | ) | | | (13,542 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 637 | | | 1,022 | | | | 5,849 | | | | 5,820 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 1,250 | | | 3,454 | | | | 11,484 | | | | 26,042 | |
Proceeds from reinvestment of distributions | | 68 | | | 44 | | | | 619 | | | | 314 | |
Payments for shares redeemed | | (836 | ) | | (1,611 | ) | | | (7,698 | ) | | | (11,755 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 482 | | | 1,887 | | | | 4,405 | | | | 14,601 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | |
Proceeds from shares sold | | 471 | | | 886 | | | | 4,370 | | | | 6,521 | |
Proceeds from reinvestment of distributions | | 24 | | | 19 | | | | 217 | | | | 142 | |
Payments for shares redeemed | | (348 | ) | | (364 | ) | | | (3,200 | ) | | | (2,756 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 147 | | | 541 | | | | 1,387 | | | | 3,907 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 2,293 | | | 5,306 | | | $ | 21,037 | | | $ | 38,295 | |
| | | | | | | | | | | | | | |
| | |
| 106 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| 2045 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 120 | | | 231 | | | $ | 1,026 | | | $ | 1,742 | |
Proceeds from reinvestment of distributions | | 3 | | | 2 | | | | 28 | | | | 12 | |
Payments for shares redeemed | | (161 | ) | | (70 | ) | | | (1,342 | ) | | | (481 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | (38 | ) | | 163 | | | | (288 | ) | | | 1,273 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 329 | | | 305 | | | | 2,784 | | | | 2,070 | |
Proceeds from reinvestment of distributions | | 6 | | | 2 | | | | 52 | | | | 12 | |
Payments for shares redeemed | | (48 | ) | | (37 | ) | | | (412 | ) | | | (267 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 287 | | | 270 | | | | 2,424 | | | | 1,815 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 105 | | | 88 | | | | 898 | | | | 553 | |
Proceeds from reinvestment of distributions | | 1 | | | — | | | | 12 | | | | 4 | |
Payments for shares redeemed | | (22 | ) | | (10 | ) | | | (185 | ) | | | (61 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 84 | | | 78 | | | | 725 | | | | 496 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 333 | | | 511 | | | $ | 2,861 | | | $ | 3,584 | |
| | | | | | | | | | | | | | |
| | |
| | | Shares | | | Dollars | |
| 2050 Strategy Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 205 | | | 51 | | | $ | 1,720 | | | $ | 387 | |
Proceeds from reinvestment of distributions | | 2 | | | — | | | | 15 | | | | 3 | |
Payments for shares redeemed | | (122 | ) | | — | | | | (1,047 | ) | | | (6 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 85 | | | 51 | | | | 688 | | | | 384 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 422 | | | 1,312 | | | | 3,639 | | | | 8,606 | |
Proceeds from reinvestment of distributions | | 21 | | | 11 | | | | 176 | | | | 73 | |
Payments for shares redeemed | | (100 | ) | | (217 | ) | | | (866 | ) | | | (1,533 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 343 | | | 1,106 | | | | 2,949 | | | | 7,146 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 143 | | | 280 | | | | 1,214 | | | | 1,837 | |
Proceeds from reinvestment of distributions | | 3 | | | — | | | | 29 | | | | 6 | |
Payments for shares redeemed | | (27 | ) | | (111 | ) | | | (225 | ) | | | (723 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 119 | | | 169 | | | | 1,018 | | | | 1,120 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 547 | | | 1,326 | | | $ | 4,655 | | | $ | 8,650 | |
| | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 107 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
| 6. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | |
| | | Shares | | | Dollars | |
| In Retirement Fund | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 7 | | | 12 | | | $ | 64 | | | $ | 96 | |
Proceeds from reinvestment of distributions | | — | | | — | | | | 4 | | | | 5 | |
Payments for shares redeemed | | (2 | ) | | (1 | ) | | | (16 | ) | | | (10 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 5 | | | 11 | | | | 52 | | | | 91 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 138 | | | 304 | | | | 1,311 | | | | 2,401 | |
Proceeds from reinvestment of distributions | | 6 | | | 9 | | | | 58 | | | | 72 | |
Payments for shares redeemed | | (51 | ) | | (69 | ) | | | (496 | ) | | | (577 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 93 | | | 244 | | | | 873 | | | | 1,896 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | |
Proceeds from shares sold | | 86 | | | 70 | | | | 828 | | | | 559 | |
Proceeds from reinvestment of distributions | | 2 | | | 2 | | | | 18 | | | | 16 | |
Payments for shares redeemed | | (17 | ) | | (1 | ) | | | (169 | ) | | | (11 | ) |
| | | | | | | | | | | | | | |
Net increase (decrease) | | 71 | | | 71 | | | | 677 | | | | 564 | |
| | | | | | | | | | | | | | |
Total increase (decrease) | | 169 | | | 326 | | | $ | 1,602 | | | $ | 2,551 | |
| | | | | | | | | | | | | | |
| 7. | | Interfund Lending Program |
The Investment Company Funds have been granted permission from the Securities and Exchange Commission to participate in a joint lending and borrowing facility (the “Credit Facility”). Portfolios of the Funds may borrow money from each other for temporary purposes. All such borrowing and lending will be subject to a participating Fund’s fundamental investment limitations. Typically, Funds will borrow from the Russell Money Market Fund. The Russell Money Market Fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements or short-term reserves and the portfolio manager determines it is in the best interest of the Russell Money Market Fund. The Investment Company Funds will borrow through the program only when the costs are equal to or lower than the cost of bank loans. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one business day’s notice. A participating fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to the Russell Money Market Fund could result in a lost investment opportunity or additional borrowing costs. For the period ended April 30, 2010, the Funds did not borrow through the interfund lending program.
As of April 30 2010, 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 | | 1 | | 20.5 |
Moderate Strategy Fund | | 1 | | 16.6 |
Balanced Strategy Fund | | 1 | | 11.6 |
Growth Strategy Fund | | 1 | | 13.2 |
Equity Growth Strategy Fund | | 1 | | 13.9 |
2010 Strategy Fund | | 4 | | 51.2 |
2015 Strategy Fund | | 2 | | 48.1 |
2020 Strategy Fund | | 4 | | 53.3 |
2025 Strategy Fund | | 4 | | 67.9 |
2030 Strategy Fund | | 4 | | 54.4 |
2035 Strategy Fund | | 4 | | 66.8 |
2040 Strategy Fund | | 3 | | 44.7 |
2045 Strategy Fund | | 3 | | 66.8 |
2050 Strategy Fund | | 1 | | 68.0 |
In Retirement Fund | | 3 | | 71.9 |
| | |
| 108 | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2010 (Unaudited)
Management has evaluated events or transactions that may have occurred since April 30, 2010 that would merit recognition or disclosure in the financial statements. This evaluation was completed through June 23, 2010, the date the financial statements were available to be issued. During this review nothing was discovered which would required further disclosure within the financial statements.
Effective July 1, 2010, each Fund’s allocation to the Undelying Funds in which it invests will be modified including the addition of the RIC Russell Commodity Strategies Fund as an Underlying Fund.
| | |
| Notes to Financial Statements | | 109 |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts — (Unaudited)
Approval of Investment Advisory Agreement
The Board of Trustees, including all of the Independent Trustees, last considered and approved the continuation of the advisory agreement with RIMCo (the “RIMCo Agreement”) and the portfolio management contract with each Money Manager of the Funds (collectively, the “portfolio management contracts”) at a meeting held in person on April 20, 2010 (the “Agreement Evaluation Meeting”). During the course of a year, the Trustees receive a wide variety of materials regarding the investment performance of the Funds, sales and redemptions of the Funds’ and Underlying Funds’ shares, management of the Funds and the Underlying Funds by RIMCo and compliance with applicable regulatory requirements. In preparation for the annual review, the Independent Trustees, with the advice and assistance of their independent counsel, also requested and the Board considered (1) information, analyses and reports prepared by RIMCo relating to the services provided by RIMCo (and its affiliates) to the Funds and the Underlying Funds; and (2) information (the “Third-Party Information”) received from an independent, nationally recognized provider of investment company information comparing the performance of each of the Funds and the Underlying Funds and their respective operating expenses over various periods of time with other peer funds not managed by RIMCo believed by the provider to be generally comparable in investment objectives to the Funds and the Underlying Funds. In the case of each Fund, its other peer funds are collectively hereinafter referred to as the Fund’s “Comparable Funds,” and, with the Fund, such Comparable Funds are collectively hereinafter referred to as the Fund’s “Performance Universe” in the case of performance comparisons and the Fund’s “Expense Universe” in the case of operating expense comparisons. In the case of certain Funds, the Third-Party Information reflected changes in the Comparable Funds requested by RIMCo, which changes were noted in the Third-Party Information. The foregoing information requested by the Trustees or provided by RIMCo is collectively called the “Agreement Evaluation Information.” The Trustees’ evaluations also reflected the knowledge and familiarity gained as Board members of the Funds and other funds in the same complex with respect to services provided by RIMCo, RIMCo’s affiliates and each Money Manager. The Trustees received a memorandum from counsel to the Funds and Underlying Funds discussing the legal standards for their consideration of the continuations of the RIMCo Agreement and the portfolio management contracts and the Independent Trustees separately received a memorandum regarding their responsibilities from their independent counsel.
On April 13, 2010, the Independent Trustees in preparation for the Agreement Evaluation Meeting met by conference telephone call to review Agreement Evaluation Information received to that date in a private session with their independent counsel at which no representatives of RIMCo or the Funds’ management were present and, on the basis of that review, requested additional Agreement Evaluation Information. At the Agreement Evaluation Meeting, the Board, including the Independent Trustees, reviewed the proposed continuance of the RIMCo Agreement and the portfolio management contracts with management, counsel to the Funds and Underlying Funds and independent counsel to the Independent Trustees. Presentations made by RIMCo to the Board as part of this review encompassed the Funds and all other RIMCo-managed funds for which the Board has supervisory responsibility. Following this review, but prior to voting, the Independent Trustees again met in executive session with their independent counsel to consider additional Agreement Evaluation Information received from RIMCo and management at the Agreement Evaluation Meeting. The discussion below reflects all of these reviews.
In evaluating the portfolio management contracts, the Board considered that the Underlying Funds, in employing a manager-of-managers method of investment, operate in a manner that is distinctly different from most other investment companies. In the case of most other investment companies, an advisory fee is paid by the investment company to its adviser which, in turn, employs and compensates individual portfolio managers to make specific securities selections consistent with the adviser’s style and investment philosophy. RIMCo has engaged multiple unaffiliated Money Managers for all Underlying Funds.
The Board considered that RIMCo (rather than any Money Manager) is responsible under the RIMCo Agreement for allocating assets of each Fund among its Underlying Funds and for determining, implementing and maintaining the investment program for each Underlying Fund. The assets of each Fund are invested in different combinations of the Underlying Funds pursuant to target asset allocations set by RIMCo. RIMCo may modify the target asset allocation for any Fund and/or the Underlying Funds in which the Funds invest. Assets of each Underlying Fund generally have been allocated among the multiple Money Managers selected by RIMCo, subject to Board approval, for that Underlying Fund. RIMCo manages directly a portion of certain Underlying Funds’ assets employing a “select holdings strategy,” as described below, and directly manages the investment of each Underlying Fund’s cash reserves. RIMCo also may manage directly any portion of each Underlying Fund’s assets that RIMCo determines not to allocate to the Money Managers and portions of an Underlying Fund during transitions between Money Managers. In all cases, assets are managed directly by RIMCo pursuant to authority provided by the RIMCo Agreement.
RIMCo is responsible for selecting, subject to Board approval, Money Managers for each Underlying Fund and for actively managing allocations and reallocations of its assets among the Money Managers. The Board has been advised that RIMCo’s goal is to construct and manage diversified portfolios in a risk-aware manner. Each Money Manager for an Underlying Fund in effect performs the function of an individual portfolio manager who is responsible for selecting portfolio securities for the portion of the Underlying Fund assigned to it by RIMCo (each, a “segment”) in accordance with the Underlying Fund’s applicable investment objective, policies and
| | |
| 110 | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
restrictions, any constraints placed by RIMCo upon their selection of portfolio securities and the Money Manager’s specified role in an Underlying Fund. RIMCo is responsible for communicating performance expectations to each Money Manager; supervising compliance by each Money Manager with each Underlying Fund’s investment objective and policies; authorizing Money Managers to engage in certain investment strategies for an Underlying Fund; and recommending annually to the Board whether portfolio management contracts should be renewed, modified or terminated. In addition to its annual recommendation as to the renewal, modification or termination of portfolio management contracts, RIMCo is responsible for recommending to the Board additions of new Money Managers or replacements of existing Money Managers at any time when, based on RIMCo’s research and ongoing review and analysis, such actions are appropriate. RIMCo may impose specific investment constraints from time to time for each Money Manager intended to capitalize on the strengths of that Money Manager or to coordinate the investment activities of Money Managers for an Underlying Fund in a complementary manner. Therefore, the performance of individual Money Managers for an Underlying Fund may reflect the roles assigned to them by RIMCo in the Underlying Fund’s investment activities and any constraints placed by RIMCo upon their selection of portfolio securities. In light of the foregoing, the overall performance of each Underlying Fund over appropriate periods reflects, in great part, the performance of RIMCo in designing the Underlying Fund’s investment program, structuring an Underlying Fund, selecting an effective Money Manager with a particular investment style or sub-style for a segment that is complementary to the styles of the Money Managers of other Underlying Fund segments, and allocating assets among the Money Managers in a manner designed to achieve the objectives of the Underlying Fund.
The Board considered that the prospectuses for the Funds and the Underlying Funds and other public disclosures emphasize to investors RIMCo’s role as the principal investment manager for each Underlying Fund, rather than the investment selection role of the Underlying Funds’ Money Managers, and describe the manner in which the Funds or Underlying Funds operate so that investors may take that information into account when deciding to purchase shares of any such Fund. The Board further considered that Fund investors in pursuing their investment goals and objectives likely purchased their shares on the basis of this information and RIMCo’s reputation and performance record in managing the Underlying Funds’ manager-of-managers structure.
The Board also considered the demands and complexity of managing the Underlying Funds pursuant to the manager-of-managers structure, the special expertise of RIMCo with respect to the manager-of-managers structure of the Underlying Funds and the likelihood that, at the current expense ratio of each Underlying Fund, there would be no acceptable alternative investment managers to replace RIMCo on comparable terms given the need to continue the manager-of-managers strategy of such Underlying Fund selected by shareholders in purchasing their shares of a Fund or Underlying Fund.
In addition to these general factors relating to the manager-of-managers structure of the Underlying Funds, the Trustees considered, with respect to each Fund and Underlying Fund, various specific factors in evaluating renewal of the RIMCo Agreement, including the following:
| 1. | The nature, scope and overall quality of the investment management and other services provided, and expected to be provided, to the Fund or the Underlying Fund by RIMCo; |
| 2. | The advisory fee paid by the Fund or the Underlying Fund to RIMCo (the “Advisory Fee”) and the fact that it encompasses all investment advisory fees paid by the Fund or Underlying Fund, including the fees for any Money Managers of such Underlying Fund; |
| 3. | Information provided by RIMCo as to other fees and benefits received by RIMCo or its affiliates from the Fund or Underlying Fund, including any administrative, transfer agent or cash management fees and fees received for management of securities lending cash collateral, soft dollar arrangements and commissions in connection with portfolio securities transactions; |
| 4. | Information provided by RIMCo as to expenses incurred by the Fund or the Underlying Fund; and |
| 5. | Information provided by RIMCo as to the profits that RIMCo derives from its mutual fund operations generally and from the Fund or Underlying Fund. |
In evaluating the nature, scope and overall quality of the investment management and other services provided and which are expected to be provided to the Funds, including Fund portfolio management services, the Board inquired as to the possible impact on the Funds’ operations of significant changes in RIMCo’s senior management and other personnel providing services to the Funds during 2009 and 2010 to the date of the Agreement Evaluation Meeting and a planned relocation of the Russell organization’s headquarters by the end of 2010. At the Agreement Evaluation Meeting, senior representatives of RIMCo discussed these changes with the Board and assured the Board that, while these changes likely would have a near term impact because of increased demands upon continuing personnel, steps were being taken to avoid any long-term diminution in the nature, scope or quality of the services provided to the Funds. The Board also discussed the possible impact of such changes on the compliance programs of the Funds and
RIMCo and received assurances from senior representatives of the Russell organization that such changes would not result in any long-term diminution in the scope and quality of the Funds’ compliance programs.
| | |
| Basis for Approval of Investment Advisory Contracts | | 111 |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
As noted above, RIMCo, pursuant to the terms of the RIMCo Agreement, directly manages a portion — up to 10% — of the assets of each of the Russell U.S. Core Equity Fund and the Russell U.S. Quantitative Equity Fund (each a “Participating Underlying Fund”) during the past year utilizing a select holdings strategy, the actual allocation being determined by each Participating Underlying Fund’s RIMCo portfolio manager. The select holdings strategy utilized by RIMCo in managing such assets for a Participating Underlying Fund is designed to increase the Participating Underlying Fund’s exposure to stocks that are viewed as attractive by multiple Money Managers of that Participating Underlying Fund. The Board reviewed the results of the select holdings strategy in respect of each Participating Underlying Fund during the past year. With respect to each Participating Underlying Fund, the Trustees considered that RIMCo is not required to pay investment advisory fees to a Money Manager with respect to assets for which the select holdings strategy is utilized and that the profits derived by RIMCo generally and from the Participating Underlying Fund consequently may increase incrementally. The Board, however, also considered RIMCo’s advice that it pays certain Money Managers additional fees for providing information and other services in connection with the select holdings strategy and incurs additional costs in carrying out the select holdings strategy, the limited amount of assets that are managed directly by RIMCo pursuant to the select holdings strategy, and the fact that the aggregate investment advisory fees paid by the Participating Underlying Fund are not increased as a result of the select holdings strategy.
In evaluating the reasonableness of the Funds’ and Underlying Funds’ Advisory Fees in light of Fund and Underlying Fund performance, the Board considered that, in the Agreement Evaluation Information and at past meetings, RIMCo noted differences between the investment strategies of certain Underlying Funds and their respective Comparable Funds in pursuing their investment objectives, including fund strategies which seek to achieve a lower tracking error (i.e., the difference, whether positive or negative, between the return of a fund and its benchmark) and resulting lower return volatility than their Comparable Funds. According to RIMCo, these strategies may be expected to result, and for certain Underlying Funds during the periods covered by the Third-Party Information did result, in lower performance of the Underlying Funds than that of some of their respective Comparable Funds. According to RIMCo, the strategies pursued by the Underlying Funds, among other things, are intended to result in less volatile, more moderate returns relative to each Underlying Fund’s performance benchmark rather than more volatile, more extreme returns that its Comparable Funds may experience over time, although Fund results in 2008 and early 2009 generally did not reflect uniform success in achieving lesser volatility.
In discussing the Advisory Fees for the Underlying Funds generally, RIMCo noted, among other things, that its Advisory Fees for Underlying Funds encompass services that may not be provided by investment advisers to the Underlying Funds’ Comparable Funds, such as cash equitization and management of portfolio transition costs when Money Managers are added, terminated or replaced. RIMCo also observed that its “margins” in providing investment advisory services to the Underlying Funds tend to be lower than competitors’ margins because of the demands and complexities of managing the Underlying Funds’ manager-of-managers structure, including RIMCo’s payment of a significant portion of the Underlying Funds’ Advisory Fees to their Money Managers.
The Board considered for each Fund and Underlying Fund whether economies of scale have been realized and whether the Advisory Fees for such Fund or Underlying Fund appropriately reflect or should be revised to reflect any such economies. The Board noted that, generally, there was a reduction in the assets of the Funds and Underlying Funds as a result of market declines and related investor redemptions in 2008 and 2009 and that Fund and Underlying Fund asset levels generally have not rebounded completely from those levels. In the case of certain Funds, asset levels have continued to decline since 2008. The Board therefore determined that, after giving effect to any applicable fee or expense caps, waivers or reimbursements, the Advisory Fee for each Fund or Underlying Fund appropriately reflected any economies of scale realized by that Fund, based upon net asset flows since 2008 and such factors as the variability of Money Manager investment advisory fees and other factors associated with the manager-of-managers structure employed by the Underlying Funds.
The Board considered, as a general matter, that fees payable to RIMCo by institutional clients with investment objectives similar to those of the Funds, the Underlying Funds and other RIC funds under the Board’s supervision, including the Underlying Funds, are lower, and, in some cases, may be substantially lower, than the rates paid by RIC funds supervised by the Board, including the Funds. The Trustees considered the differences in the nature and scope of services RIMCo provides to institutional clients and the funds under its supervision, including the Underlying Funds. RIMCo explained, among other things, that institutional clients have fewer administrative needs than the Funds. RIMCo also noted that since the Funds must constantly issue and redeem their shares, they are more difficult to manage than institutional accounts, where assets are relatively stable. In addition, RIMCo noted that the Funds are subject to heightened regulatory requirements relative to institutional clients. The Board noted that RIMCo provides office space and facilities to the Funds and Underlying Funds and all of the Funds’ and Underlying Funds’ officers. Accordingly, the Trustees concluded that the services provided to the Funds and Underlying Funds are sufficiently different from the services provided to the institutional clients that comparisons are not probative and should not be given significant weight.
With respect to the Funds’ Advisory Fees, Third-Party Information showed that the Advisory Fee for each Fund on a contractual basis was ranked in the fourth quintile of its Expense Universe. The Advisory Fee for each of the Moderate Strategy Fund, Balanced
| | |
| 112 | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
Strategy Fund, Growth Strategy Fund and Equity Growth Strategy Fund on an actual basis (i.e., giving effect to any voluntary fee waivers implemented by RIMCo and the advisers to such Fund’s Comparable Funds was also ranked in the fourth quintile of its Expense Universe. The comparison was based upon the latest fiscal years for the Expense Universe funds. The Board considered that the actual Advisory Fee for each of the Moderate Strategy Fund, Balanced Strategy Fund, Growth Strategy Fund and Equity Growth Strategy Fund was ranked within 5 basis points of the third quintile of its Expense Universe. The Board considered RIMCo’s advice as to the reasons for these Funds’ Advisory Fee rankings.
The Third-Party Information showed that total expenses for each of the Balanced Strategy Fund, Growth Strategy Fund, Equity Growth Strategy Fund and the 2010 Strategy Fund were ranked in the fourth quintile of its Expense Universe. The Board considered RIMCo’s explanation of these rankings and its advice that the Growth Strategy Fund and the 2010 Strategy Fund were each ranked within 5 basis points of the third quintile of its Expense Universe. RIMCo, among other things, expressed its belief that the Expense Universes for these Funds were not appropriate, noting that the Funds have higher target allocations to equities than their Comparable Funds with resulting increased expense ratios.
On the basis of the Agreement Evaluation Information, and other information previously received by the Board from RIMCo during the course of the current year or prior years, or presented at or in connection with the Agreement Evaluation Meeting by RIMCo, the Board, in respect of each Fund and Underlying Fund, found, after giving effect to any applicable waivers and/or reimbursements and considering differences in the composition and investment strategies of their respective Comparable Funds (1) the Advisory Fee charged by RIMCo was reasonable in light of the nature, scope and overall quality of the investment management and other services provided, and expected to be provided, to the Funds or Underlying Funds; (2) the relative expense ratio of each Fund and Underlying Fund was comparable to those of its Comparable Funds; (3) RIMCo’s methodology of allocating expenses of operating funds in the complex was reasonable; (4) other benefits and fees received by RIMCo or its affiliates from the Funds or Underlying Funds were not excessive; and (5) RIMCo’s profitability with respect to the Funds and each Underlying Fund was not excessive in light of the nature, scope and overall quality of the investment management and other services provided by RIMCo.
In evaluating the performance of the Funds and Underlying Funds generally relative to their Comparable Funds, the Board, in addition to factors discussed above, also considered RIMCo’s advice that many of the Underlying Funds’ Comparable Funds do not “equitize” their cash (i.e., cash awaiting investment or disbursement to satisfy redemptions or other fund obligations) and may hold large positions uninvested in their investment portfolios. By contrast, the Underlying Funds generally follow a strategy of equitizing their cash and fully investing their assets in pursuit of their investment objectives (the Underlying Funds’ strategy of equitizing cash and fully investing their assets is hereinafter referred to as their “full investment strategy”). RIMCo noted that the Underlying Funds’ full investment strategy generally will detract from their relative performance, and therefore the relative performance of the Funds, in a declining market, such as 2008, but may enhance relative performance in a rising market, such as 2009.
The Board further concluded that, under the circumstances, the performance of each of the Funds was consistent with continuation of the RIMCo Agreement. In evaluating performance, the Board considered each Fund’s and Underlying Fund’s absolute performance and performance relative to appropriate benchmarks and indices in addition to such Fund’s performance relative to its Comparable Funds. In assessing the Funds’ performance relative to their Comparable Funds or benchmarks or in absolute terms, the Board also considered RIMCo’s stated investment strategy of managing the Underlying Funds in a risk-aware manner and the extraordinary capital market conditions during 2008 and early 2009. The Board in assessing the Funds’ performance focused upon performance for the 1-, 3- and 5-year periods (where applicable) as most relevant.
With respect to the LifePoints Balanced Strategy Fund, the Third-Party Information showed that the Fund’s performance was ranked in the second quintile of its Performance Universe for the 1- and 5-year periods ended December 31, 2009 and that its performance was ranked in the fourth quintile of its Performance Universe for the 3-year period ended December 31, 2009. RIMCo noted that the LifePoints Balanced Strategy Fund maintains a target equity allocation of 60%, exposing it to a broad array of globally diversified equity investments. By contrast, the LifePoints Balanced Strategy Fund’s Comparable Funds have target equity allocations ranging from 40% to 60% of their total portfolios. The Fund’s larger target equity allocation may detract from its performance relative to its Comparable Funds in periods of declining equity markets such as 2008, but may enhance its relative performance in periods of rising equity markets, such as 2009. RIMCo noted further that the equity sell-off of 2008 and early 2009 contributed significantly to its relative underperformance for the 3-year period.
With respect to the LifePoints Growth Strategy Fund, the Third-Party Information showed that the Fund’s performance was ranked in the second quintile of its Performance Universe for the 1-year period ended December 31, 2009 and its performance was ranked in the third quintile of its Performance Universe for the 5-year period ended such date. However, the Fund’s performance for the 3-year period ended December 31, 2009 was ranked in the fourth quintile of its Performance Universe. RIMCo noted that the LifePoints Growth Strategy Fund maintains a target equity allocation of 80% for exposure to a broad mix of globally diversified equity investments. By contrast, the LifePoints Growth Strategy Fund’s Comparable Funds have target equity allocations ranging from 60%
| | |
| Basis for Approval of Investment Advisory Contracts | | 113 |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
to 80% of their total portfolios. The LifePoints Growth Strategy Fund’s larger target equity allocation may detract from its performance relative to its Comparable Funds in periods of declining equity markets such as 2008 and early 2009, but may enhance its relative performance in periods of rising equity markets. RIMCo noted further that the equity sell-off of 2008 and early 2009 contributed significantly to its relative underperformance for the 3-year period.
After considering the foregoing and other relevant factors, the Board concluded that continuation of the RIMCo Agreement on its current terms and conditions would be in the best interests of each Fund and its respective shareholders and voted to approve the continuation of the RIMCo Agreement.
At the Agreement Evaluation Meeting, with respect to the evaluation of the terms of portfolio management contracts with Money Managers for the Underlying Funds, the Board received and considered information from RIMCo reporting, among other things, for each Money Manager, the Money Manager’s performance over various periods; RIMCo’s assessment of the performance of each Money Manager; any significant business relationships between the Money Manager and RIMCo or Russell Financial Services, Inc., the Funds’ and Underlying Funds’ underwriter; and RIMCo’s recommendation to retain the Money Manager at the current fee rate, to retain the Money Manager at a reduced fee rate or to terminate the Money Manager. The Board received reports during the course of the year from the Funds’ Chief Compliance Officer regarding each Money Manager’s compliance program. RIMCo recommended that each Money Manager be retained at its current fee rate. RIMCo has advised the Board that it does not regard Money Manager profitability as relevant to its evaluation of the portfolio management contracts with Money Managers because the willingness of Money Managers to serve in such capacity depends upon arm’s-length negotiations with RIMCo; RIMCo is aware of the fees charged by Money Managers to other clients; and RIMCo believes that the fees agreed upon with Money Managers are reasonable in light of the anticipated quality of investment advisory services to be rendered. The Board accepted RIMCo’s explanation in light of the Board’s findings as to the reasonableness of the Advisory Fee paid by each Fund and Underlying Fund and the fact that each Money Manager’s fee is paid by RIMCo.
Based substantially upon RIMCo’s recommendations, together with the Agreement Evaluation Information and other information received from RIMCo in support of its recommendations at the Agreement Evaluation Meeting, the Board concluded that the fees paid to the Money Managers of each Underlying Fund are reasonable in light of the quality of the investment advisory services provided and that continuation of the portfolio management contract with each Money Manager of each Underlying Fund would be in the best interests of such Underlying Fund and its shareholders.
In their deliberations, the Trustees did not identify any particular information as to the RIMCo Agreement or, other than RIMCo’s recommendation, the portfolio management contract with any Money Manager for an Underlying Fund that was all-important or controlling and each Trustee attributed different weights to the various factors considered. The Trustees evaluated all information available to them on a Fund-by-Fund basis and their determinations were made in respect of each Fund and Underlying Fund.
| | |
| 114 | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
LifePoints® Funds
Shareholder Requests for Additional Information — April 30, 2010 (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 www.russell.com, (iii) on the Securities and Exchange Commission’s website at www.sec.gov, and (iv) at the Securities and Exchange Commission’s public reference room.
The Board has delegated to RIMCo, 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 Funds may be invested. RIMCo has established a proxy voting committee (“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 is available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii) at www.russell.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’ prospectus 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 institution.
Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectus and annual and semiannual 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.
| | |
| Shareholder Requests for Additional Information | | 115 |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers — April 30, 2010
(Unaudited)
The following tables provide information for each officer and Trustee of the Russell Fund Complex. The Russell Fund Complex consists of RIC, which has 37 funds, and RIF, which has nine funds. Each of the Trustees is a Trustee of both RIC and RIF. The first table provides information for the interested Trustee. The second table provides information for the independent Trustees. The third table provides information for the Trustees emeritus. The fourth table provides information for the officers.
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
With Fund and
Length of
Time Served | | Term
of
Office* | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
INTERESTED TRUSTEE |
# Greg J. Stark Born May 3, 1968 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer from 2004–January 22, 2010* Trustee since 2007 | | Appointed until successor is duly elected and qualified Until successor is chosen and qualified by Trustees | | •President and CEO RIC and RIF •Chairman of the Board, President and CEO, RIMCo •Chairman of the Board, President and CEO, Russell Fund Services Company (“RFSC”) •Chairman of the Board, President and CEO, Russell Financial Services, Inc. •Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) •Until 2004, Managing Director, of Individual Investor Services, FRC •2000 to 2004 Managing Director, Sales and Client Service, RIMCo | | 46 | | None |
| | | | | | | | | | | |
# Sandra Cavanaugh Born May 10, 1954 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer since 2010 Trustee since 2010 | | Appointed until successor is duly elected and qualified Until successor is chosen and qualified by Trustees | | •President and CEO RIC and RIF •May 2009 to December 2009, Executive Vice President, Retail Channel, SunTrust Bank •2007 to January 2009, Senior Vice President, National Sales — Retail Distribution, JPMorgan Chase/Washington Mutual, Inc. •1997 to 2007, President — WM Funds Distributor & Shareholder Services/WM Financial Services | | 46 | | None |
| # | Mr. Stark is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
| # | Ms. Cavanaugh is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
| * | Effective January 22, 2010, Greg J. Stark resigned as President and Chief Executive Officer of RIC and RIF. Mr. Stark’s successor is Sandra Cavanaugh. |
| | |
| 116 | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
With Fund and
Length of
Time Served | | Term
of
Office* | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
INDEPENDENT TRUSTEES |
Thaddas L. Alston Born April 7, 1945 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2006 Chairman of the Investment Committee since 2010 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | • Senior Vice President, Larco Investments, Ltd. (real estate firm) | | 46 | | None |
| | | | | | | | | | | |
Kristianne Blake, Born January 22, 1954 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2000 Chairman since 2005 | | Appointed until successor is duly elected and qualified Annual | | • Director and Chairman of the Audit Committee, Avista Corp. • Trustee and Chairman of the Operations Committee, Principal Investor Funds and Principal Variable Contracts Funds • Regent, University of Washington • President, Kristianne Gates Blake, P.S. (accounting services) • February 2002 to June 2005, Chairman of the Audit Committee, RIC and RIF • Trustee and Chairman of the Operations and Distribution Committee, WM Group of Funds, 1999–2006 | | 46 | | • Director, Avista Corp (electric utilities) • Trustee, Principal Investor Funds (investment company); • Trustee, Principal Variable Contracts Funds (investment company) |
| | | | | | | | | | | |
Daniel P. Connealy Born June 6, 1946 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2003 Chairman of the Audit Committee since 2005 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | • June 2004 to present, Senior Vice President and Chief Financial Officer, Waddell & Reed Financial, Inc. | | 46 | | None |
Jonathan Fine, Born July 8, 1954 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2004 | | Appointed until successor is duly elected and qualified | | • President and Chief Executive Officer, United Way of King County, WA | | 46 | | None |
Raymond P. Tennison, Jr. Born December 21, 1955 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2000 Chairman of the Nominating and Governance Committee since 2007 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | • Vice Chairman, Simpson Investment Company • Until April 2009, President, Simpson Investment Company and several additional subsidiary companies, including Simpson Timber Company, Simpson Paper Company and Simpson Tacoma Kraft Company | | 46 | | None |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 117 |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
With Fund and
Length of
Time Served | | Term
of
Office* | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
INDEPENDENT TRUSTEES (continued) |
Jack R. Thompson, Born March 21, 1949 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2005 | | Appointed until successor is duly elected and qualified | | • September 2003 to September 2009, Independent Board Chair and Chairman of the Audit Committee, Sparx Asia Funds • September 2007 to present, Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation (health products company) | | 46 | | • Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation (health products company) |
Julie W. Weston, Born October 2, 1943 909 A Street Tacoma, Washington 98402-1616 | | Trustee since 2002 | | Appointed until successor is duly elected and qualified Appointed until successor is duly elected and qualified | | Retired | | 46 | | None |
| * | Each Trustee is subject to mandatory retirement at age 72. |
| | |
| 118 | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | | | | | |
Name,
Age,
Address | | Position(s) Held
With Fund and
Length of
Time Served | | Term
of
Office | | Principal Occupation(s)
During the
Past 5 Years | | No. of
Portfolios
in Russell
Fund
Complex
Overseen
by Trustee | | Other
Directorships Held
by Trustee |
TRUSTEES EMERITUS | | | | | | | | | | |
* George F. Russell, Jr., Born July 3, 1932 909 A Street Tacoma, Washington 98402-1616 | | Trustee Emeritus and Chairman Emeritus since 1999 | | Until resignation or removal | | • Director Emeritus, Frank Russell Company (investment consultant to institutional investors (“FRC”)) and RIMCo • Chairman Emeritus, RIC and RIF; Russell Implementation Services Inc. (broker-dealer and investment adviser (“RIS”)); Russell 20-20 Association (non-profit corporation); and Russell Trust Company (non-depository trust company (“RTC”)) • Chairman, Sunshine Management Services, LLC (investment adviser) | | 46 | | None |
| | | | | | | | | | | |
Paul E. Anderson, Born October 15, 1931 909 A Street Tacoma, Washington 98402-1616 | | Trustee Emeritus since 2007 | | Five year term | | • President, Anderson Management Group LLC (private investments consulting) • Trustee, RIC and RIF until 2006 • February 2002 to June 2005, Lead Trustee, RIC and RIF • Chairman of the Nominating and Governance Committee, 2006 | | 46 | | None |
| | | | | | | | | | | |
Lee C. Gingrich, Born October 6, 1930 909 A Street Tacoma, Washington 98402-1616 | | Trustee Emeritus since 2006 | | Five year term | | • Retired since 1995 • Trustee of RIC and RIF until 2005 • Chairman of the Nominating and Governance Committee 2001–2005 | | 46 | | None |
| * | Mr. Russell is also a director emeritus of one or more affiliates of RIC and RIF. |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 119 |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2010 (Unaudited)
| | | | | | |
Name,
Age,
Address | | Position(s) Held
With Fund and
Length of
Time Served | | Term
of
Office | | Principal Occupation(s)
During the
Past 5 Years |
OFFICERS | | | | | | |
Cheryl Wichers Born December 16, 1966 909 A Street Tacoma, Washington 98402-1616 | | Chief Compliance Officer since 2005 | | Until removed by Independent Trustees | | • Chief Compliance Officer, RIC • Chief Compliance Officer, RIF • Chief Compliance Officer, RIMCo • Chief Compliance Officer, RFSC • April 2002–May 2005, Manager, Global Regulatory Policy |
| | | | | | | |
Greg J. Stark, Born May 3, 1968 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer from 2004–January 22, 2010 | | Until successor is chosen and qualified by Trustees | | • President and CEO, RIC and RIF • Chairman of the Board, President and CEO, RIMCo • Chairman of the Board, President and CEO, Russell Financial Services, Inc. • Chairman of the Board, President and CEO, RFSC • Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) • Until 2004, Managing Director of Individual Investor Services, FRC • 2000 to 2004, Managing Director, Sales and Client Service, RIMCo |
| | | | | | | |
Sandra Cavanaugh Born May 10, 1954 909 A Street Tacoma, Washington 98402-1616 | | President and Chief Executive Officer since 2010 | | Appointed until successor is duly elected and qualified | | • President and CEO RIC and RIF • May 2009 to December 2009, Executive Vice President, Retail Channel, SunTrust Bank • 2007 to January 2009, Senior Vice President, National Sales — Retail Distribution, JPMorgan Chase/Washington Mutual, Inc. • 1997 to 2007, President — WM Funds Distributor & Shareholder Services/WM Financial Services |
| | | | | | | |
Mark E. Swanson, Born November 26, 1963 909 A Street Tacoma, Washington 98402-1616 | | Treasurer and Chief Accounting Officer since 1998 | | Until successor is chosen and qualified by Trustees | | • Treasurer, Chief Accounting Officer and CFO, RIC and RIF • Director, Funds Administration, RIMCo, RFSC, RTC and Russell Financial Services, Inc. • Treasurer and Principal Accounting Officer, SSgA Funds |
| | | | | | | |
Peter Gunning, Born February 22, 1967 909 A Street Tacoma, Washington 98402-1616 | | Chief Investment Officer since 2008 | | Until removed by Trustees | | • Chief Investment Officer, RIC and RIF • Director, RIMCo and FRC • 1996 to 2008 Chief Investment Officer, Russell, Asia Pacific |
| | | | | | | |
Gregory J. Lyons, Born August 24, 1960 909 A Street Tacoma, Washington 98402-1616 | | Secretary since 2007 | | Until successor is chosen and qualified by Trustees | | • U.S. General Counsel and Assistant Secretary, FRC • Director and Assistant Secretary, RIA • Secretary, RIMCo, RFSC and Russell Financial Services, Inc. • Secretary and Chief Legal Counsel, RIC and RIF |
| | |
| 120 | | Disclosure of Information about Fund Trustees and Officers |
LifePoints® Funds
Russell Investment Company
909 A Street, Tacoma, Washington 98402
(800) 787-7354
Interested Trustee
Sandra Cavanaugh
Independent Trustees
Thaddas L. Alston
Kristianne Blake
Daniel P. Connealy
Jonathan Fine
Raymond P. Tennison, Jr.
Jack R. Thompson
Julie W. Weston
Trustees Emeritus
George F. Russell, Jr.
Paul E. Anderson
Lee C. Gingrich
Officers
Sandra Cavanaugh, President and Chief Executive Officer
Cheryl Wichers, Chief Compliance Officer
Peter Gunning, Chief Investment Officer
Mark E. Swanson, Treasurer and Chief Accounting Officer
Gregory J. Lyons, Secretary
Adviser
Russell Investment Management Company
909 A Street
Tacoma, WA 98402
Administrator and Transfer and Dividend Disbursing Agent
Russell Fund Services Company
909 A Street
Tacoma, WA 98402
Custodian
State Street Bank and Trust Company
Josiah Quincy Building
200 Newport Avenue
North Quincy, MA 02171
Office of Shareholder Inquiries
909 A Street
Tacoma, WA 98402
(800) 787-7354
Legal Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116-5021
Distributor
Russell Financial Services, Inc.
909 A Street
Tacoma, WA 98402
Money Managers of Underlying Funds as of April 30, 2010
Russell U.S. Core Equity Fund
BlackRock Capital Management, Inc., New York, NY
Columbus Circle Investors, Stamford, CT
First Eagle Investment Management, LLC, New York, NY
Institutional Capital LLC, Chicago, IL
Lazard Asset Management, LLC, New York, NY
MFS Institutional Advisors, Inc., Boston, MA
Montag & Caldwell, Inc., Atlanta, GA
Schneider Capital Management Corporation, Wayne, PA
Snow Capital Management L.P., Sewickley, PA
Suffolk Capital Management, LLC, New York, NY
Russell U.S. Quantitative Equity Fund
Aronson+Johnson+Ortiz, LP, Philadelphia, PA
Goldman Sachs Asset Management, L.P., New York, NY
INTECH Investment Management LLC, West Palm Beach, FL
Jacobs Levy Equity Management, Inc., Florham Park, NJ
Numeric Investors LLC, Boston, MA
Russell U.S. Small & Mid Cap Fund
ClariVest Asset Management LLC, San Diego, CA
Delphi Management, Inc., Boston, MA
DePrince, Race & Zollo, Inc., Winter Park, FL
Jacobs Levy Equity Management, Inc., Florham Park, NJ
Next Century Growth Investors, LLC, Minneapolis, MN
Ranger Investment Management, L.P., Dallas, TX
Signia Capital Management, LLC, Spokane, WA
Tygh Capital Management, Inc., Portland, OR
Russell Real Estate Securities Fund
AEW Capital Management, L.P., Boston, MA
Cohen & Steers Capital Management, Inc., New York, NY
Heitman Real Estate Securities LLC, Chicago, IL
INVESCO Advisers, Inc. which acts as a money manager to the Fund through its INVESCO Real Estate Division, Dallas, TX
Russell Global Equity Fund
Gartmore Global Partners, London, United Kingdom
Harris Associates, L.P., Chicago, IL
MFS Institutional Advisors, Inc., Boston, MA
Tradewinds Global Investors, LLC, Los Angeles, CA
T. Rowe Price International, Inc., Baltimore, MD
Russell International Developed Markets Fund
AllianceBernstein L.P., New York, NY
AQR Capital Management, LLC, Greenwich, CT
Axiom International Investors LLC, Greenwich, CT
Marsico Capital Management, LLC, Denver, CO
MFS Institutional Advisors, Inc., Boston, MA
Mondrian Investment Partners Limited, London, United Kingdom
Pzena Investment Management, LLC, New York, NY
UBS Global Asset Management (Americas) Inc., Chicago, IL
William Blair & Company, LLC, Chicago, IL
| | |
| Adviser, Money Managers and Service Providers | | 121 |
LifePoints® Funds
Russell Investment Company
909 A Street, Tacoma, Washington 98402
(800) 787-7354
Russell Emerging Markets Fund
AllianceBernstein L.P., New York, NY
Arrowstreet Capital, Limited Partnership, Boston, MA
Genesis Asset Managers, LLP, London, United Kingdom
Harding Loevner LLC, Somerville, NJ
T. Rowe Price International, Inc., Baltimore, MD
UBS Global Asset Management (Americas) Inc., Chicago, IL
Russell Strategic Bond Fund
Brookfield Investment Management Inc., New York, NY
Goldman Sachs Asset Management, L.P., New York, NY
Logan Circle Partners, L.P., Philadelphia, PA
Metropolitan West Asset Management, LLC, Los Angeles, CA
Pacific Investment Management Company LLC, Newport Beach, CA
Russell Investment Grade Bond Fund
Metropolitan West Asset Management, LLC, Los Angeles, CA
Neuberger Berman Fixed Income LLC, Chicago, IL
Pacific Investment Management Company LLC, Newport Beach, CA
Western Asset Management Company, Pasadena, CA
Western Asset Management Company Limited, London, England
Russell Short Duration Bond Fund
Logan Circle Partners, L.P., Philadelphia, PA
Pacific Investment Management Company LLC, Newport Beach, CA
| | |
| 122 | | Adviser, Money Managers and Service Providers |
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.
| | | | |
| Russell Investment Company | | 909 A Street | | 800-787-7354 |
| | Tacoma, Washington 98402 | | Fax: 253-591-3495 |
| | | | www.russell.com |
36-08-227
| 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.
(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/ SANDRA CAVANAUGH |
| | Sandra Cavanaugh |
| | President, Principal Executive Officer and Chief Executive Officer |
Date: June 28, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| | |
| |
| By: | | /S/ SANDRA CAVANAUGH |
| | Sandra Cavanaugh |
| | President, Principal Executive Officer and Chief Executive Officer |
Date: June 28, 2010
| | |
| |
| By: | | /S/ MARK E. SWANSON |
| | Mark E. Swanson |
| | Principal Financial Officer, Principal Accounting Officer and Treasurer |
Date: June 28, 2010
