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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)
1301 2nd Avenue 18th Floor, Seattle Washington 98101
(Address of principal executive offices) (Zip code)
Mary Beth Rhoden, Secretary and Chief Legal Officer
Russell Investment Company
1301 2nd Avenue
18th Floor
Seattle, Washington 98101
206-505-4846
(Name and address of agent for service)
Registrant’s telephone number, including area code: 206-505-7877
Date of fiscal year end: October 31
Date of reporting period: November 1, 2011 – April 30, 2012
Item 1. Reports to Stockholders
2012 SEMI-ANNUAL REPORT
Russell Funds
APRIL 30, 2012
| | |
| 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. Large Cap Equity Fund | | A, C, S |
| |
| Russell U.S. Mid Cap Equity Fund | | A, C, S |
| |
Russell U.S. Small Cap Equity Fund (formerly, 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 | | A, C, E, S |
| |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | A, C, E, S |
| |
| Taxable Fixed Income Funds | | |
| |
| Russell Global Opportunistic Credit Fund | | A, C, E, S, Y |
| |
| Russell Strategic Bond Fund | | A, C, E, I, S, Y |
| |
| Russell Investment Grade Bond Fund | | A, 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 | | A, C, E, S |
| |
| Real Assets Funds | | |
| |
| Russell Commodity Strategies Fund | | A, C, E, S, Y |
| |
| Russell Global Infrastructure Fund | | A, C, E, S, Y |
| |
| Russell Global 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 38 different investment portfolios referred to as Funds. These financial statements report on 21 of these Funds.
Russell Investment Company
Russell Funds
Semi-annual Report
April 30, 2012 (Unaudited)
Table of Contents
Russell Investment Company - Russell Funds.
Copyright © Russell Investments 2012. 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 and 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, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,119.71 | | | $ | 1,019.54 | |
Expenses Paid During Period* | | $ | 5.64 | | | $ | 5.37 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.07% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,115.61 | | | $ | 1,015.81 | |
Expenses Paid During Period* | | $ | 9.57 | | | $ | 9.12 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.82% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,120.10 | | | $ | 1,019.84 | |
Expenses Paid During Period* | | $ | 5.32 | | | $ | 5.07 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.01% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,121.64 | | | $ | 1,021.18 | |
Expenses Paid During Period* | | $ | 3.90 | | | $ | 3.72 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.74% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, 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, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,121.23 | | | $ | 1,020.79 | |
Expenses Paid During Period* | | $ | 4.32 | | | $ | 4.12 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,122.27 | | | $ | 1,021.68 | |
Expenses Paid During Period* | | $ | 3.38 | | | $ | 3.22 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 4 | | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 92.6% | | | | | | | | |
| Consumer Discretionary - 16.2% | |
Aegean Marine Petroleum Network, Inc. | | | 300,675 | | | | 2,150 | |
Amazon.com, Inc. (Æ) | | | 168,480 | | | | 39,071 | |
AutoZone, Inc. (Æ) | | | 22,720 | | | | 9,001 | |
Bed Bath & Beyond, Inc. (Æ) | | | 83,090 | | | | 5,849 | |
Big Lots, Inc. (Æ) | | | 107,950 | | | | 3,955 | |
BorgWarner, Inc. (Æ)(Ñ) | | | 66,600 | | | | 5,264 | |
Carnival Corp. | | | 151,790 | | | | 4,932 | |
CBS Corp. Class B | | | 209,800 | | | | 6,997 | |
Chipotle Mexican Grill, Inc. Class A (Æ) | | | 4,700 | | | | 1,946 | |
Coach, Inc. | | | 52,300 | | | | 3,826 | |
Comcast Corp. Class A (Æ) | | | 1,267,654 | | | | 37,896 | |
Costco Wholesale Corp. | | | 67,100 | | | | 5,916 | |
eBay, Inc. (Æ) | | | 962,510 | | | | 39,511 | |
Estee Lauder Cos., Inc. (The) Class A | | | 61,752 | | | | 4,035 | |
Ford Motor Co. | | | 548,276 | | | | 6,185 | |
Hanesbrands, Inc. (Æ) | | | 178,700 | | | | 5,043 | |
Hertz Global Holdings, Inc. (Æ) | | | 451,900 | | | | 6,964 | |
Home Depot, Inc. | | | 300,893 | | | | 15,583 | |
JC Penney Co., Inc. | | | 30,610 | | | | 1,104 | |
Johnson Controls, Inc. | | | 650,850 | | | | 20,808 | |
KB Home (Ñ) | | | 363,623 | | | | 3,156 | |
Las Vegas Sands Corp. | | | 334,200 | | | | 18,545 | |
Lear Corp. | | | 287,200 | | | | 11,919 | |
Limited Brands, Inc. | | | 212,300 | | | | 10,551 | |
Lowe’s Cos., Inc. | | | 310,900 | | | | 9,784 | |
Lululemon Athletica, Inc. (Æ) | | | 36,600 | | | | 2,714 | |
Macy’s, Inc. | | | 366,750 | | | | 15,044 | |
Marriott International, Inc. Class A | | | 85,640 | | | | 3,348 | |
McDonald’s Corp. | | | 61,900 | | | | 6,032 | |
MGM Resorts International (Æ) | | | 265,600 | | | | 3,564 | |
Michael Kors Holdings, Ltd. (Æ) | | | 129,841 | | | | 5,930 | |
Newell Rubbermaid, Inc. | | | 495,400 | | | | 9,016 | |
Nike, Inc. Class B | | | 73,100 | | | | 8,178 | |
NVR, Inc. (Æ) | | | 14,857 | | | | 11,647 | |
Orient-Express Hotels, Ltd. Class A (Æ) | | | 232,290 | | | | 2,483 | |
priceline.com, Inc. (Æ) | | | 15,343 | | | | 11,673 | |
Snap-on, Inc. | | | 80,465 | | | | 5,032 | |
Stanley Black & Decker, Inc. | | | 152,600 | | | | 11,164 | |
Starbucks Corp. | | | 471,865 | | | | 27,076 | |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | | 306,100 | | | | 18,121 | |
Target Corp. | | | 118,100 | | | | 6,843 | |
Tesla Motors, Inc. (Æ)(Ñ) | | | 83,400 | | | | 2,763 | |
Time Warner, Inc. | | | 1,248,300 | | | | 46,761 | |
Toll Brothers, Inc. (Æ) | | | 308,095 | | | | 7,826 | |
Tractor Supply Co. | | | 19,600 | | | | 1,929 | |
Ulta Salon Cosmetics & Fragrance, Inc. | | | 24,100 | | | | 2,125 | |
Under Armour, Inc. Class A (Æ) | | | 39,000 | | | | 3,819 | |
Viacom, Inc. Class B | | | 618,750 | | | | 28,704 | |
Wal-Mart Stores, Inc. | | | 733,854 | | | | 43,231 | |
Walt Disney Co. (The) | | | 148,600 | | | | 6,406 | |
Warnaco Group, Inc. (The) (Æ) | | | 90,900 | | | | 4,814 | |
Yum! Brands, Inc. | | | 483,600 | | | | 35,172 | |
| | | | | | | | |
| | | | | | | 611,406 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Consumer Staples - 6.4% | | | | | | | | |
Archer-Daniels-Midland Co. | | | 593,650 | | | | 18,302 | |
Cia de Bebidas das Americas - ADR | | | 371,450 | | | | 15,593 | |
Coca-Cola Co. (The) | | | 683,100 | | | | 52,134 | |
Colgate-Palmolive Co. | | | 217,300 | | | | 21,500 | |
CVS Caremark Corp. | | | 499,700 | | | | 22,297 | |
Energizer Holdings, Inc. (Æ) | | | 133,600 | | | | 9,530 | |
General Mills, Inc. | | | 162,400 | | | | 6,316 | |
Green Mountain Coffee Roasters, Inc. (Æ)(Ñ) | | | 40,900 | | | | 1,994 | |
Herbalife, Ltd. | | | 28,600 | | | | 2,011 | |
Kraft Foods, Inc. Class A | | | 191,300 | | | | 7,627 | |
Molson Coors Brewing Co. Class B | | | 330,531 | | | | 13,743 | |
PepsiCo, Inc. | | | 24,300 | | | | 1,604 | |
Procter & Gamble Co. (The) | | | 701,800 | | | | 44,662 | |
Ralcorp Holdings, Inc. (Æ) | | | 100,860 | | | | 7,344 | |
Sysco Corp. | | | 285,900 | | | | 8,262 | |
Whole Foods Market, Inc. | | | 114,070 | | | | 9,476 | |
| | | | | | | | |
| | | | | | | 242,395 | |
| | | | | | | | |
| | |
| Energy - 9.6% | | | | | | | | |
Alpha Natural Resources, Inc. (Æ) | | | 80,779 | | | | 1,303 | |
Anadarko Petroleum Corp. | | | 166,300 | | | | 12,175 | |
Arch Coal, Inc. (Ñ) | | | 1,122,590 | | | | 10,956 | |
Baker Hughes, Inc. | | | 68,650 | | | | 3,028 | |
BP PLC - ADR | | | 51,450 | | | | 2,233 | |
Cabot Oil & Gas Corp. | | | 110,970 | | | | 3,900 | |
Chesapeake Energy Corp. | | | 622,045 | | | | 11,471 | |
Chevron Corp. | | | 309,766 | | | | 33,009 | |
ConocoPhillips | | | 627,100 | | | | 44,919 | |
CONSOL Energy, Inc. | | | 440,610 | | | | 14,646 | |
Devon Energy Corp. | | | 218,000 | | | | 15,227 | |
EQT Corp. | | | 53,911 | | | | 2,686 | |
Exxon Mobil Corp. | | | 483,300 | | | | 41,728 | |
FMC Technologies, Inc. (Æ) | | | 68,200 | | | | 3,205 | |
Forest Oil Corp. (Æ) | | | 419,300 | | | | 5,585 | |
Halliburton Co. | | | 312,576 | | | | 10,696 | |
Marathon Petroleum Corp. | | | 340,725 | | | | 14,178 | |
National Oilwell Varco, Inc. | | | 371,200 | | | | 28,122 | |
Noble Corp. (Æ) | | | 177,550 | | | | 6,758 | |
Noble Energy, Inc. | | | 38,300 | | | | 3,804 | |
Occidental Petroleum Corp. | | | 224,000 | | | | 20,433 | |
Peabody Energy Corp. | | | 365,725 | | | | 11,378 | |
Range Resources Corp. | | | 65,100 | | | | 4,340 | |
Schlumberger, Ltd. | | | 392,200 | | | | 29,078 | |
Southwestern Energy Co. (Æ) | | | 371,800 | | | | 11,741 | |
Valero Energy Corp. | | | 223,850 | | | | 5,529 | |
Walter Energy, Inc. Class A | | | 74,500 | | | | 4,940 | |
Whiting Petroleum Corp. (Æ) | | | 59,700 | | | | 3,415 | |
| | | | | | | | |
| | | | | | | 360,483 | |
| | | | | | | | |
| | |
| Financial Services - 15.4% | | | | | | | | |
ACE, Ltd. | | | 172,445 | | | | 13,101 | |
Alert Care Corp. - ADR (Æ) | | | 353,100 | | | | 4,311 | |
Allstate Corp. (The) | | | 399,925 | | | | 13,329 | |
American Express Co. | | | 498,410 | | | | 30,009 | |
American Tower Corp. Class A (ö) | | | 60,800 | | | | 3,987 | |
| | |
| Russell U.S. Core Equity Fund | | 5 |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Ameriprise Financial, Inc. | | | 200,434 | | | | 10,865 | |
Aon PLC | | | 17,316 | | | | 897 | |
Assured Guaranty, Ltd. | | | 314,899 | | | | 4,465 | |
BB&T Corp. | | | 536,100 | | | | 17,177 | |
Capital One Financial Corp. | | | 730,201 | | | | 40,511 | |
Citigroup, Inc. | | | 1,388,272 | | | | 45,868 | |
Discover Financial Services | | | 241,672 | | | | 8,193 | |
Fifth Third Bancorp | | | 472,600 | | | | 6,725 | |
Genworth Financial, Inc. Class A (Æ) | | | 990,100 | | | | 5,950 | |
Goldman Sachs Group, Inc. (The) | | | 88,900 | | | | 10,237 | |
Hartford Financial Services Group, Inc. | | | 693,100 | | | | 14,243 | |
Huntington Bancshares, Inc. | | | 548,815 | | | | 3,672 | |
iShares Russell 1000 Value Index Fund | | | 4,250 | | | | 295 | |
Janus Capital Group, Inc. | | | 657,000 | | | | 4,980 | |
Jefferies Group, Inc. (Ñ) | | | 200,200 | | | | 3,189 | |
JPMorgan Chase & Co. | | | 1,806,563 | | | | 77,646 | |
Lincoln National Corp. | | | 281,900 | | | | 6,983 | |
Mastercard, Inc. Class A | | | 26,837 | | | | 12,138 | |
MetLife, Inc. | | | 880,450 | | | | 31,723 | |
PNC Financial Services Group, Inc. | | | 164,247 | | | | 10,893 | |
Prudential Financial, Inc. | | | 405,650 | | | | 24,558 | |
Regions Financial Corp. | | | 1,217,185 | | | | 8,204 | |
RenaissanceRe Holdings, Ltd. | | | 73,715 | | | | 5,754 | |
State Street Corp. | | | 449,300 | | | | 20,767 | |
Sunstone Hotel Investors, Inc. (Æ)(ö) | | | 490,751 | | | | 5,006 | |
SunTrust Banks, Inc. | | | 578,613 | | | | 14,049 | |
Travelers Cos., Inc. (The) | | | 152,618 | | | | 9,816 | |
Visa, Inc. Class A | | | 266,212 | | | | 32,739 | |
Wells Fargo & Co. | | | 2,059,550 | | | | 68,851 | |
Western Union Co. (The) | | | 563,800 | | | | 10,363 | |
| | | | | | | | |
| | | | | | | 581,494 | |
| | | | | | | | |
| | |
| Health Care - 12.7% | | | | | | | | |
Abbott Laboratories | | | 91,950 | | | | 5,706 | |
Alexion Pharmaceuticals, Inc. (Æ) | | | 47,443 | | | | 4,285 | |
Allergan, Inc. | | | 82,600 | | | | 7,930 | |
AmerisourceBergen Corp. Class A | | | 97,500 | | | | 3,628 | |
Amgen, Inc. | | | 240,785 | | | | 17,122 | |
Baxter International, Inc. | | | 254,700 | | | | 14,113 | |
Biogen Idec, Inc. (Æ) | | | 72,600 | | | | 9,729 | |
Bristol-Myers Squibb Co. | | | 96,800 | | | | 3,230 | |
Brookdale Senior Living, Inc. Class A (Æ) | | | 361,625 | | | | 6,874 | |
Cardinal Health, Inc. | | | 65,900 | | | | 2,786 | |
CareFusion Corp. (Æ) | | | 284,700 | | | | 7,377 | |
Celgene Corp. (Æ) | | | 74,000 | | | | 5,396 | |
Cerner Corp. (Æ) | | | 328,760 | | | | 26,659 | |
Community Health Systems, Inc. (Æ) | | | 335,000 | | | | 8,154 | |
Covidien PLC | | | 281,750 | | | | 15,561 | |
Dentsply International, Inc. | | | 264,000 | | | | 10,840 | |
Express Scripts Holding Co. (Æ) | | | 235,045 | | | | 13,113 | |
Gilead Sciences, Inc. (Æ) | | | 342,939 | | | | 17,836 | |
Hospira, Inc. (Æ) | | | 62,800 | | | | 2,206 | |
Intuitive Surgical, Inc. (Æ) | | | 32,910 | | | | 19,029 | |
Johnson & Johnson | | | 109,158 | | | | 7,105 | |
McKesson Corp. | | | 270,800 | | | | 24,754 | |
Medtronic, Inc. | | | 170,201 | | | | 6,502 | |
Merck & Co., Inc. | | | 426,556 | | | | 16,738 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Mylan, Inc. (Æ) | | | 781,820 | | | | 16,973 | |
Novo Nordisk A/S - ADR | | | 118,200 | | | | 17,378 | |
Perrigo Co. | | | 147,030 | | | | 15,423 | |
Pfizer, Inc. | | | 5,064,369 | | | | 116,126 | |
Quest Diagnostics, Inc. | | | 186,600 | | | | 10,765 | |
Sanofi - ADR | | | 397,000 | | | | 15,157 | |
Teva Pharmaceutical Industries, Ltd. - ADR | | | 133,800 | | | | 6,120 | |
UnitedHealth Group, Inc. | | | 276,350 | | | | 15,517 | |
Valeant Pharmaceuticals International, Inc. (Æ) | | | 127,100 | | | | 7,071 | |
| | | | | | | | |
| | | | | | | 477,203 | |
| | | | | | | | |
|
| Materials and Processing - 3.8% | |
Air Products & Chemicals, Inc. | | | 73,200 | | | | 6,258 | |
Ball Corp. | | | 81,748 | | | | 3,414 | |
Celanese Corp. Class A | | | 97,600 | | | | 4,730 | |
Ecolab, Inc. | | | 340,000 | | | | 21,655 | |
EI du Pont de Nemours & Co. | | | 195,400 | | | | 10,446 | |
Freeport-McMoRan Copper & Gold, Inc. | | | 96,300 | | | | 3,688 | |
International Paper Co. | | | 108,800 | | | | 3,624 | |
LyondellBasell Industries NV Class A | | | 85,400 | | | | 3,568 | |
Masco Corp. | | | 125,900 | | | | 1,659 | |
Monsanto Co. | | | 666,377 | | | | 50,764 | |
Mosaic Co. (The) | | | 162,100 | | | | 8,562 | |
Praxair, Inc. | | | 90,300 | | | | 10,448 | |
Precision Castparts Corp. | | | 28,200 | | | | 4,974 | |
Sealed Air Corp. | | | 119,200 | | | | 2,286 | |
Sherwin-Williams Co. (The) | | | 17,200 | | | | 2,069 | |
Stillwater Mining Co. (Æ) | | | 404,000 | | | | 4,335 | |
| | | | | | | | |
| | | | | | | 142,480 | |
| | | | | | | | |
|
| Producer Durables - 9.1% | |
Accenture PLC Class A | | | 111,600 | | | | 7,248 | |
AECOM Technology Corp. (Æ) | | | 127,750 | | | | 2,819 | |
Allison Transmission Holdings,
Inc. (Æ)(Ñ) | | | 66,200 | | | | 1,384 | |
Automatic Data Processing, Inc. | | | 364,600 | | | | 20,279 | |
Avery Dennison Corp. | | | 128,250 | | | | 4,101 | |
Boeing Co. (The) | | | 414,130 | | | | 31,805 | |
Caterpillar, Inc. | | | 162,200 | | | | 16,669 | |
Corrections Corp. of America (Æ) | | | 252,448 | | | | 7,293 | |
Cummins, Inc. | | | 110,200 | | | | 12,764 | |
Danaher Corp. | | | 191,200 | | | | 10,367 | |
Danone - ADR | | | 939,580 | | | | 13,210 | |
Deere & Co. | | | 88,545 | | | | 7,293 | |
Delta Air Lines, Inc. (Æ) | | | 489,000 | | | | 5,359 | |
Eaton Corp. | | | 101,800 | | | | 4,905 | |
FedEx Corp. | | | 140,000 | | | | 12,354 | |
General Electric Co. | | | 1,682,600 | | | | 32,945 | |
Honeywell International, Inc. | | | 763,422 | | | | 46,309 | |
Ingersoll-Rand PLC | | | 119,000 | | | | 5,060 | |
Joy Global, Inc. | | | 143,800 | | | | 10,177 | |
Lexmark International, Inc. Class A | | | 142,800 | | | | 4,298 | |
Magna International, Inc. Class A | | | 143,605 | | | | 6,294 | |
Manpower, Inc. | | | 55,500 | | | | 2,364 | |
Navistar International Corp. (Æ) | | | 160,783 | | | | 5,459 | |
PACCAR, Inc. | | | 62,700 | | | | 2,694 | |
Parker Hannifin Corp. | | | 142,600 | | | | 12,505 | |
| | | | |
| | 6 | | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Pentair, Inc. | | | 131,700 | | | | 5,708 | |
Raytheon Co. | | | 266,758 | | | | 14,442 | |
Rockwell Automation, Inc. | | | 87,700 | | | | 6,783 | |
Roper Industries, Inc. | | | 20,300 | | | | 2,069 | |
Spirit Aerosystems Holdings, Inc. Class A (Æ) | | | 285,600 | | | | 7,140 | |
Terex Corp. (Æ) | | | 136,465 | | | | 3,090 | |
Union Pacific Corp. | | | 42,400 | | | | 4,767 | |
United Continental Holdings, Inc. (Æ) | | | 162,900 | | | | 3,571 | |
United Technologies Corp. | | | 60,400 | | | | 4,931 | |
Xylem, Inc. | | | 220,500 | | | | 6,148 | |
| | | | | | | | |
| | | | | | | 344,604 | |
| | | | | | | | |
| | |
| Technology - 18.9% | | | | | | | | |
Analog Devices, Inc. | | | 167,700 | | | | 6,537 | |
Apple, Inc. (Æ) | | | 203,396 | | | | 118,832 | |
Applied Materials, Inc. | | | 1,790,300 | | | | 21,466 | |
Avago Technologies, Ltd. | | | 255,800 | | | | 8,820 | |
Avnet, Inc. (Æ) | | | 116,320 | | | | 4,197 | |
Broadcom Corp. Class A (Æ) | | | 108,086 | | | | 3,956 | |
Check Point Software Technologies, Ltd. (Æ)(Ñ) | | | 63,600 | | | | 3,697 | |
Cisco Systems, Inc. | | | 3,814,494 | | | | 76,862 | |
Citrix Systems, Inc. (Æ) | | | 141,600 | | | | 12,122 | |
Cognizant Technology Solutions Corp. Class A (Æ) | | | 78,827 | | | | 5,780 | |
Dell, Inc. (Æ) | | | 590,570 | | | | 9,668 | |
EMC Corp. (Æ) | | | 846,284 | | | | 23,874 | |
F5 Networks, Inc. (Æ) | | | 12,200 | | | | 1,634 | |
Fusion-io, Inc. (Æ)(Ñ) | | | 67,612 | | | | 1,734 | |
Google, Inc. Class A (Æ) | | | 81,548 | | | | 49,355 | |
Intel Corp. | | | 543,712 | | | | 15,441 | |
International Business Machines Corp. | | | 105,726 | | | | 21,894 | |
LSI Corp. (Æ) | | | 324,200 | | | | 2,607 | |
Marvell Technology Group, Ltd. (Æ) | | | 305,800 | | | | 4,590 | |
Maxim Integrated Products, Inc. | | | 211,100 | | | | 6,244 | |
MEMC Electronic Materials, Inc. (Æ) | | | 526,400 | | | | 1,890 | |
Microsoft Corp. | | | 2,341,833 | | | | 74,986 | |
NetApp, Inc. (Æ) | | | 109,500 | | | | 4,252 | |
NXP Semiconductor NV (Æ) | | | 146,400 | | | | 3,784 | |
Oracle Corp. | | | 426,797 | | | | 12,544 | |
QUALCOMM, Inc. | | | 900,080 | | | | 57,461 | |
Rackspace Hosting, Inc. (Æ) | | | 55,900 | | | | 3,247 | |
Red Hat, Inc. (Æ) | | | 339,280 | | | | 20,225 | |
Salesforce.com, Inc. (Æ) | | | 94,576 | | | | 14,728 | |
SAP AG - ADR (Ñ) | | | 150,360 | | | | 9,967 | |
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR | | | 426,300 | | | | 6,642 | |
Teradata Corp. (Æ) | | | 63,300 | | | | 4,417 | |
Texas Instruments, Inc. | | | 1,494,250 | | | | 47,726 | |
VeriFone Systems, Inc. (Æ) | | | 149,220 | | | | 7,109 | |
VMware, Inc. Class A (Æ) | | | 78,700 | | | | 8,792 | |
Vodafone Group PLC - ADR | | | 1,087,400 | | | | 30,262 | |
Xilinx, Inc. | | | 83,900 | | | | 3,052 | |
| | | | | | | | |
| | | | | | | 710,394 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Utilities - 0.5% | | | | | | | | |
CenturyLink, Inc. | | | 95,900 | | | | 3,698 | |
FirstEnergy Corp. | | | 61,053 | | | | 2,859 | |
GenOn Energy, Inc. (Æ) | | | 1,596,405 | | | | 3,400 | |
Level 3 Communications, Inc. (Æ) | | | 79,700 | | | | 1,838 | |
Verizon Communications, Inc. | | | 157,700 | | | | 6,368 | |
| | | | | | | | |
| | | | | | | 18,163 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $2,886,170) | | | | | | | 3,488,622 | |
| | | | | | | | |
| |
| Short-Term Investments - 6.9% | | | | | |
Russell U.S. Cash Management Fund | | | 261,828,269 | (¥) | | | 261,828 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $261,828) | | | | 261,828 | |
| | | | | | | | |
| | |
| Other Securities - 1.0% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 3,072,953 | (¥) | | | 3,129 | |
Russell U.S. Cash Collateral Fund (×) | | | 32,710,139 | (¥) | | | 32,710 | |
| | | | | | | | |
| |
Total Other Securities
(cost $35,783) | | | | 35,839 | |
| | | | | | | | |
| |
Total Investments - 100.5%
(identified cost $3,183,781) | | | | 3,786,289 | |
| |
Other Assets and Liabilities,
Net - (0.5%) | | | | (17,471 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 3,768,818 | |
| | | | | | | | |
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, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
| Long Positions | | | | | | | | | | | | | | | | | | | | |
Russell 1000 Mini Index Futures (CME) | | | 347 | | | | USD | | | | 26,764 | | | | 06/12 | | | | 448 | |
S&P 500 E-Mini Index Futures (CME) | | | 3,120 | | | | USD | | | | 217,402 | | | | 06/12 | | | | 2,477 | |
S&P 500 Index Futures (CME) | | | 90 | | | | USD | | | | 31,356 | | | | 06/12 | | | | 886 | |
| | | | | | | | | | | | | | | | | | | | |
| |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | 3,811 | |
| | | | | | | | | | | | | | | | | | | | |
��
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 611,406 | | | $ | — | | | $ | — | | | $ | 611,406 | | | | 16.2 | |
Consumer Staples | | | 242,395 | | | | — | | | | — | | | | 242,395 | | | | 6.4 | |
Energy | | | 360,483 | | | | — | | | | — | | | | 360,483 | | | | 9.6 | |
Financial Services | | | 581,494 | | | | — | | | | — | | | | 581,494 | | | | 15.4 | |
Health Care | | | 477,203 | | | | — | | | | — | | | | 477,203 | | | | 12.7 | |
Materials and Processing | | | 142,480 | | | | — | | | | — | | | | 142,480 | | | | 3.8 | |
Producer Durables | | | 344,604 | | | | — | | | | — | | | | 344,604 | | | | 9.1 | |
Technology | | | 710,394 | | | | — | | | | — | | | | 710,394 | | | | 18.9 | |
Utilities | | | 18,163 | | | | — | | | | — | | | | 18,163 | | | | 0.5 | |
Short-Term Investments | | | — | | | | 261,828 | | | | — | | | | 261,828 | | | | 6.9 | |
Other Securities | | | — | | | | 35,839 | | | | — | | | | 35,839 | | | | 1.0 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 3,488,622 | | | | 297,667 | | | | — | | | | 3,786,289 | | | | 100.5 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (0.5 | ) |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 3,811 | | | | — | | | | — | | | | 3,811 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 3,811 | | | $ | — | | | $ | — | | | $ | 3,811 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
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, 2012 (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* | | $ | 3,811 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 32,155 | |
| | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (5,818 | ) |
| | | | |
| * | 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 and 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. Core Equity Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 3,183,781 | |
Investments, at market*, ** | | | 3,786,289 | |
Cash (restricted) | | | 17,500 | |
Receivables: | | | | |
Dividends and interest | | | 2,397 | |
Dividends from affiliated Russell money market funds | | | 32 | |
Investments sold | | | 34,677 | |
Fund shares sold | | | 4,295 | |
Prepaid expenses | | | 6 | |
| | | | |
Total assets | | | 3,845,196 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 31,458 | |
Fund shares redeemed | | | 5,498 | |
Accrued fees to affiliates | | | 2,258 | |
Other accrued expenses | | | 381 | |
Daily variation margin on futures contracts | | | 1,000 | |
Payable upon return of securities loaned | | | 35,783 | |
| | | | |
Total liabilities | | | 76,378 | |
| | | | |
| | | | |
Net Assets | | $ | 3,768,818 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 10 | | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 897 | |
Accumulated net realized gain (loss) | | | (742,766 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 602,508 | |
Futures contracts | | | 3,811 | |
Shares of beneficial interest | | | 1,250 | |
Additional paid-in capital | | | 3,903,118 | |
| | | | |
Net Assets | | $ | 3,768,818 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 30.20 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 32.04 | |
Class A — Net assets | | $ | 30,214,704 | |
Class A — Shares outstanding ($.01 par value) | | | 1,000,459 | |
Net asset value per share: Class C(a) | | $ | 29.95 | |
Class C — Net assets | | $ | 60,456,848 | |
Class C — Shares outstanding ($.01 par value) | | | 2,018,540 | |
Net asset value per share: Class E(a) | | $ | 30.17 | |
Class E — Net assets | | $ | 63,896,380 | |
Class E — Shares outstanding ($.01 par value) | | | 2,117,542 | |
Net asset value per share: Class I(a) | | $ | 30.16 | |
Class I — Net assets | | $ | 761,438,968 | |
Class I — Shares outstanding ($.01 par value) | | | 25,243,870 | |
Net asset value per share: Class S(a) | | $ | 30.16 | |
Class S — Net assets | | $ | 1,566,263,064 | |
Class S — Shares outstanding ($.01 par value) | | | 51,933,070 | |
Net asset value per share: Class Y(a) | | $ | 30.14 | |
Class Y — Net assets | | $ | 1,286,548,227 | |
Class Y — Shares outstanding ($.01 par value) | | | 42,688,698 | |
Amounts in thousands | | | | |
| | | | |
* Securities on loan included in investments | | $ | 37,782 | |
** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 297,667 | |
| (a) | 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.
| | |
| Russell U.S. Core Equity Fund | | 11 |
Russell Investment Company
Russell U.S. Core Equity Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 32,525 | |
Dividends from affiliated Russell money market funds | | | 127 | |
Securities lending income | | | 315 | |
| | | | |
Total investment income | | | 32,967 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 10,236 | |
Administrative fees | | | 915 | |
Custodian fees | | | 311 | |
Distribution fees - Class A | | | 37 | |
Distribution fees - Class C | | | 229 | |
Transfer agent fees - Class A | | | 26 | |
Transfer agent fees - Class C | | | 55 | |
Transfer agent fees - Class E | | | 59 | |
Transfer agent fees - Class I | | | 408 | |
Transfer agent fees - Class S | | | 1,368 | |
Transfer agent fees - Class Y | | | 27 | |
Professional fees | | | 82 | |
Registration fees | | | 115 | |
Shareholder servicing fees - Class C | | | 76 | |
Shareholder servicing fees - Class E | | | 83 | |
Trustees’ fees | | | 41 | |
Printing fees | | | 118 | |
Miscellaneous | | | 35 | |
| | | | |
Expenses before reductions | | | 14,221 | |
Expense reductions | | | (20 | ) |
| | | | |
Net expenses | | | 14,201 | |
| | | | |
Net investment income (loss) | | | 18,766 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 224,309 | |
Futures contracts | | | 32,155 | |
Foreign currency-related transactions | | | 1 | |
| | | | |
Net realized gain (loss) | | | 256,465 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 163,573 | |
Futures contracts | | | (5,818 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 157,755 | |
| | | | |
Net realized and unrealized gain (loss) | | | 414,220 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 432,986 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 12 | | | Russell U.S. Core Equity Fund |
Russell Investment Company
Russell U.S. Core Equity Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 18,766 | | | $ | 37,791 | |
Net realized gain (loss) | | | 256,465 | | | | 252,641 | |
Net change in unrealized appreciation (depreciation) | | | 157,755 | | | | (99,829 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 432,986 | | | | 190,603 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (117 | ) | | | (175 | ) |
Class C | | | (98 | ) | | | (49 | ) |
Class E | | | (279 | ) | | | (545 | ) |
Class I | | | (4,679 | ) | | | (8,923 | ) |
Class S | | | (7,949 | ) | | | (12,893 | ) |
Class Y | | | (7,341 | ) | | | (14,191 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (20,463 | ) | | | (36,776 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (438,790 | ) | | | (259,178 | ) |
Fund Reimbursements | | | — | | | | 8 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (26,267 | ) | | | (105,343 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 3,795,085 | | | | 3,900,428 | |
| | | | | | | | |
End of period | | $ | 3,768,818 | | | $ | 3,795,085 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 897 | | | $ | 2,594 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Core Equity Fund | | 13 |
Russell Investment Company
Russell U.S. Core Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 27.08 | | | | .10 | | | | 3.13 | | | | 3.23 | | | | (.11 | ) | | | — | |
October 31, 2011 | | | 26.05 | | | | .17 | | | | 1.03 | | | | 1.20 | | | | (.17 | ) | | | — | |
October 31, 2010 | | | 22.76 | | | | .13 | | | | 3.29 | | | | 3.42 | | | | (.13 | ) | | | — | |
October 31, 2009 | | | 20.73 | | | | .17 | | | | 2.05 | | | | 2.22 | | | | (.19 | ) | | | — | |
October 31, 2008(3) | | | 28.57 | | | | .03 | | | | (7.85 | ) | | | (7.82 | ) | | | (.02 | ) | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 26.89 | | | | (.01 | ) | | | 3.11 | | | | 3.10 | | | | (.04 | ) | | | — | |
October 31, 2011 | | | 25.91 | | | | (.03 | ) | | | 1.03 | | | | 1.00 | | | | (.02 | ) | | | — | |
October 31, 2010 | | | 22.69 | | | | (.05 | ) | | | 3.27 | | | | 3.22 | | | | — | (f) | | | — | |
October 31, 2009 | | | 20.71 | | | | .03 | | | | 2.01 | | | | 2.04 | | | | (.06 | ) | | | — | |
October 31, 2008(3) | | | 28.57 | | | | — | (f) | | | (7.85 | ) | | | (7.85 | ) | | | (.01 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 27.06 | | | | .11 | | | | 3.12 | | | | 3.23 | | | | (.12 | ) | | | — | |
October 31, 2011 | | | 26.02 | | | | .20 | | | | 1.03 | | | | 1.23 | | | | (.19 | ) | | | — | |
October 31, 2010 | | | 22.73 | | | | .16 | | | | 3.29 | | | | 3.45 | | | | (.16 | ) | | | — | |
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 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 27.04 | | | | .15 | | | | 3.13 | | | | 3.28 | | | | (.16 | ) | | | — | |
October 31, 2011 | | | 26.01 | | | | .27 | | | | 1.02 | | | | 1.29 | | | | (.26 | ) | | | — | |
October 31, 2010 | | | 22.72 | | | | .21 | | | | 3.30 | | | | 3.51 | | | | (.22 | ) | | | — | |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 27.04 | | | | .13 | | | | 3.14 | | | | 3.27 | | | | (.15 | ) | | | — | |
October 31, 2011 | | | 26.01 | | | | .24 | | | | 1.03 | | | | 1.27 | | | | (.24 | ) | | | — | |
October 31, 2010 | | | 22.72 | | | | .19 | | | | 3.29 | | | | 3.48 | | | | (.19 | ) | | | — | |
October 31, 2009 | | | 20.72 | | | | .22 | | | | 2.01 | | | | 2.23 | | | | (.23 | ) | | | — | |
October 31, 2008(3) | | | 28.56 | | | | .05 | | | | (7.87 | ) | | | (7.82 | ) | | | (.02 | ) | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 27.02 | | | | .16 | | | | 3.13 | | | | 3.29 | | | | (.17 | ) | | | — | |
October 31, 2011 | | | 25.99 | | | | .29 | | | | 1.03 | | | | 1.32 | | | | (.29 | ) | | | — | |
October 31, 2010 | | | 22.71 | | | | .23 | | | | 3.29 | | | | 3.52 | | | | (.24 | ) | | | — | |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 14 | | | Russell U.S. Core Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.11 | ) | | | 30.20 | | | | 11.97 | | | | 30,215 | | | | 1.07 | | | | 1.07 | | | | .70 | | | | 63 | |
| | (.17 | ) | | | 27.08 | | | | 4.60 | | | | 29,238 | | | | 1.07 | | | | 1.07 | | | | .62 | | | | 90 | |
| | (.13 | ) | | | 26.05 | | | | 15.10 | | | | 25,461 | | | | 1.06 | | | | 1.06 | | | | .52 | | | | 97 | |
| | (.19 | ) | | | 22.76 | | | | 10.87 | | | | 20,849 | | | | 1.07 | | | | 1.07 | | | | .85 | | | | 125 | |
| | (.02 | ) | | | 20.73 | | | | (27.38 | ) | | | 16,179 | | | | 1.10 | | | | 1.09 | | | | .73 | | | | 121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.04 | ) | | | 29.95 | | | | 11.56 | | | | 60,457 | | | | 1.82 | | | | 1.82 | | | | (.05 | ) | | | 63 | |
| | (.02 | ) | | | 26.89 | | | | 3.81 | | | | 61,417 | | | | 1.82 | | | | 1.82 | | | | (.13 | ) | | | 90 | |
| | — | | | | 25.91 | | | | 14.24 | | | | 76,345 | | | | 1.81 | | | | 1.81 | | | | (.22 | ) | | | 97 | |
| | (.06 | ) | | | 22.69 | | | | 9.92 | | | | 82,018 | | | | 1.81 | | | | 1.81 | | | | .14 | | | | 125 | |
| | (.01 | ) | | | 20.71 | | | | (27.49 | ) | | | 86,199 | | | | 1.84 | | | | 1.83 | | | | — | | | | 121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.12 | ) | | | 30.17 | | | | 12.01 | | | | 63,896 | | | | 1.07 | | | | 1.01 | | | | .78 | | | | 63 | |
| | (.19 | ) | | | 27.06 | | | | 4.67 | | | | 67,675 | | | | 1.07 | | | | .99 | | | | .71 | | | | 90 | |
| | (.16 | ) | | | 26.02 | | | | 15.23 | | | | 88,999 | | | | 1.06 | | | | .95 | | | | .63 | | | | 97 | |
| | (.21 | ) | | | 22.73 | | | | 10.84 | | | | 94,835 | | | | 1.07 | | | | .94 | | | | 1.01 | | | | 125 | |
| | (3.32 | ) | | | 20.73 | | | | (40.01 | ) | | | 94,785 | | | | 1.00 | | | | .95 | | | | 1.07 | | | | 121 | |
| | (1.79 | ) | | | 38.09 | | | | 19.82 | | | | 49,355 | | | | .95 | | | | .93 | | | | .82 | | | | 113 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.16 | ) | | | 30.16 | | | | 12.16 | | | | 761,439 | | | | .74 | | | | .74 | | | | 1.06 | | | | 63 | |
| | (.26 | ) | | | 27.04 | | | | 4.95 | | | | 887,294 | | | | .74 | | | | .74 | | | | .96 | | | | 90 | |
| | (.22 | ) | | | 26.01 | | | | 15.52 | | | | 969,214 | | | | .73 | | | | .72 | | | | .86 | | | | 97 | |
| | (.26 | ) | | | 22.72 | | | | 11.08 | | | | 809,999 | | | | .74 | | | | .69 | | | | 1.27 | | | | 125 | |
| | (3.39 | ) | | | 20.73 | | | | (39.85 | ) | | | 872,188 | | | | .73 | | | | .70 | | | | 1.37 | | | | 121 | |
| | (1.88 | ) | | | 38.08 | | | | 20.17 | | | | 1,396,706 | | | | .70 | | | | .68 | | | | 1.07 | | | | 113 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 30.16 | | | | 12.12 | | | | 1,566,263 | | | | .82 | | | | .82 | | | | .95 | | | | 63 | |
| | (.24 | ) | | | 27.04 | | | | 4.87 | | | | 1,509,859 | | | | .82 | | | | .82 | | | | .87 | | | | 90 | |
| | (.19 | ) | | | 26.01 | | | | 15.40 | | | | 1,367,750 | | | | .81 | | | | .81 | | | | .77 | | | | 97 | |
| | (.23 | ) | | | 22.72 | | | | 10.99 | | | | 1,418,555 | | | | .82 | | | | .82 | | | | 1.11 | | | | 125 | |
| | (.02 | ) | | | 20.72 | | | | (27.39 | ) | | | 1,249,003 | | | | .85 | | | | .83 | | | | 1.01 | | | | 121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 30.14 | | | | 12.23 | | | | 1,286,548 | | | | .64 | | | | .64 | | | | 1.12 | | | | 63 | |
| | (.29 | ) | | | 27.02 | | | | 5.06 | | | | 1,239,602 | | | | .64 | | | | .64 | | | | 1.05 | | | | 90 | |
| | (.24 | ) | | | 25.99 | | | | 15.57 | | | | 1,372,658 | | | | .64 | | | | .64 | | | | .96 | | | | 97 | |
| | (.27 | ) | | | 22.71 | | | | 11.18 | | | | 2,048,380 | | | | .64 | | | | .64 | | | | 1.29 | | | | 125 | |
| | (3.40 | ) | | | 20.71 | | | | (39.87 | ) | | | 1,927,663 | | | | .67 | | | | .66 | | | | 1.35 | | | | 121 | |
| | (1.90 | ) | | | 38.07 | | | | 20.23 | | | | 575,655 | | | | .65 | | | | .63 | | | | 1.12 | | | | 113 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Core Equity Fund | | 15 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,129.96 | | | $ | 1,018.60 | |
Expenses Paid During Period* | | $ | 6.67 | | | $ | 6.32 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,126.03 | | | $ | 1,014.87 | |
Expenses Paid During Period* | | $ | 10.62 | | | $ | 10.07 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.01% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,130.37 | | | $ | 1,018.90 | |
Expenses Paid During Period* | | $ | 6.36 | | | $ | 6.02 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.20% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,132.09 | | | $ | 1,020 .24 | |
Expenses Paid During Period* | | $ | 4.93 | | | $ | 4.67 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.93% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 16 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,131.58 | | | $ | 1,019 .84 | |
Expenses Paid During Period* | | $ | 5.35 | | | $ | 5.07 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.01% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,132.57 | | | $ | 1,020.74 | |
Expenses Paid During Period* | | $ | 4.40 | | | $ | 4.17 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell U.S. Quantitative Equity Fund | | 17 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 106.2% | |
| Consumer Discretionary - 16.4% | |
Aaron’s, Inc. Class A | | | 3,600 | | | | 98 | |
Abercrombie & Fitch Co. Class A | | | 77,900 | | | | 3,908 | |
Advance Auto Parts, Inc. | | | 170,768 | | | | 15,677 | |
Amazon.com, Inc. (Æ) | | | 1,200 | | | | 278 | |
AMC Networks, Inc. Class A (Æ) | | | 90,403 | | | | 3,842 | |
American Eagle Outfitters, Inc. | | | 8,700 | | | | 157 | |
Apollo Group, Inc. Class A (Æ) | | | 262,500 | | | | 9,245 | |
Arbitron, Inc. | | | 17,166 | | | | 653 | |
AutoNation, Inc. (Æ) | | | 9,700 | | | | 335 | |
AutoZone, Inc. (Æ)(Û) | | | 45,520 | | | | 18,033 | |
Bed Bath & Beyond, Inc. (Æ) | | | 21,500 | | | | 1,513 | |
Best Buy Co., Inc. | | | 271,600 | | | | 5,994 | |
Big Lots, Inc. (Æ) | | | 13,100 | | | | 480 | |
BorgWarner, Inc. (Æ) | | | 8,500 | | | | 672 | |
Bridgepoint Education, Inc. (Æ) | | | 35,819 | | | | 772 | |
Brunswick Corp. | | | 20,800 | | | | 547 | |
CBS Corp. Class B | | | 244,100 | | | | 8,141 | |
Charter Communications, Inc. Class A (Æ) | | | 22,700 | | | | 1,373 | |
Chico’s FAS, Inc. | | | 3,200 | | | | 49 | |
Chipotle Mexican Grill, Inc. Class A (Æ)(Û) | | | 13,920 | | | | 5,765 | |
Coach, Inc. (Û) | | | 287,096 | | | | 21,004 | |
Comcast Corp. Class A (Û) | | | 288,675 | | | | 8,756 | |
Costco Wholesale Corp. | | | 42,900 | | | | 3,783 | |
Darden Restaurants, Inc. | | | 12,000 | | | | 601 | |
Delphi Automotive PLC (Æ) | | | 245,956 | | | | 7,548 | |
DeVry, Inc. | | | 1,700 | | | | 55 | |
Dillard’s, Inc. Class A | | | 3,300 | | | | 213 | |
DIRECTV, Inc. Class A (Æ)(Û) | | | 370,337 | | | | 18,247 | |
Discovery Communications, Inc. Class A (Æ) | | | 16,500 | | | | 898 | |
DISH Network Corp. Class A | | | 79,899 | | | | 2,554 | |
Dollar General Corp. (Æ) | | | 55,495 | | | | 2,634 | |
Dollar Tree, Inc. (Æ)(Û) | | | 93,626 | | | | 9,518 | |
DR Horton, Inc. | | | 79,900 | | | | 1,306 | |
DSW, Inc. Class A | | | 36,200 | | | | 2,037 | |
Dunkin’ Brands Group, Inc. | | | 132,445 | | | | 4,287 | |
eBay, Inc. (Æ) | | | 392,891 | | | | 16,128 | |
Estee Lauder Cos., Inc. (The) Class A (Û) | | | 339,442 | | | | 22,183 | |
Expedia, Inc. | | | 33,200 | | | | 1,415 | |
Family Dollar Stores, Inc. | | | 600 | | | | 41 | |
Flextronics International, Ltd. (Æ) | | | 233,600 | | | | 1,556 | |
Foot Locker, Inc. | | | 559,512 | | | | 17,115 | |
Ford Motor Co. | | | 23,900 | | | | 270 | |
Fortune Brands Home & Security, Inc. (Æ) | | | 75,838 | | | | 1,725 | |
Fossil, Inc. (Æ) | | | 4,300 | | | | 562 | |
GameStop Corp. Class A | | | 230,310 | | | | 5,242 | |
Gannett Co., Inc. | | | 12,100 | | | | 167 | |
Gap, Inc. (The) | | | 191,200 | | | | 5,449 | |
Garmin, Ltd. | | | 57,200 | | | | 2,696 | |
GateHouse Media, Inc./Old Class A (Æ) | | | 16,000 | | | | 797 | |
General Motors Co. (Æ)(Û) | | | 233,700 | | | | 5,375 | |
Genuine Parts Co. | | | 9,400 | | | | 609 | |
Goodyear Tire & Rubber Co. (The) (Æ) | | | 370,001 | | | | 4,063 | |
Group 1 Automotive, Inc. | | | 32,125 | | | | 1,859 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
H&R Block, Inc. | | | 65,800 | | | | 967 | |
Hanesbrands, Inc. (Æ) | | | 6,500 | | | | 183 | |
Harley-Davidson, Inc. | | | 9,600 | | | | 502 | |
Harman International Industries, Inc. | | | 132,900 | | | | 6,589 | |
Hertz Global Holdings, Inc. (Æ) | | | 66,500 | | | | 1,025 | |
Home Depot, Inc. | | | 114,300 | | | | 5,920 | |
International Game Technology | | | 197,257 | | | | 3,073 | |
Interpublic Group of Cos., Inc. (The) | | | 219,500 | | | | 2,592 | |
Interval Leisure Group, Inc. | | | 6,500 | | | | 112 | |
ITT Educational Services, Inc. (Æ) | | | 2,611 | | | | 172 | |
JC Penney Co., Inc. | | | 10,300 | | | | 371 | |
John Wiley & Sons, Inc. Class A | | | 4,700 | | | | 212 | |
Lamar Advertising Co. Class A (Æ) | | | 4,700 | | | | 150 | |
Las Vegas Sands Corp. | | | 2,600 | | | | 144 | |
Lear Corp. | | | 169,644 | | | | 7,040 | |
Lennar Corp. Class A | | | 45,800 | | | | 1,271 | |
Liberty Media Corp. - Liberty Capital Class A (Æ) | | | 24,438 | | | | 2,137 | |
Limited Brands, Inc. (Û) | | | 169,834 | | | | 8,441 | |
LKQ Corp. (Æ) | | | 54,400 | | | | 1,820 | |
Lowe’s Cos., Inc. | | | 242,100 | | | | 7,619 | |
Macy’s, Inc. | | | 379,600 | | | | 15,571 | |
Marriott International, Inc. Class A | | | 181,341 | | | | 7,089 | |
Mattel, Inc. | | | 9,300 | | | | 312 | |
McDonald’s Corp. | | | 56,600 | | | | 5,516 | |
McGraw-Hill Cos., Inc. (The) (Û) | | | 166,031 | | | | 8,164 | |
MGM Resorts International (Æ) | | | 43,200 | | | | 580 | |
Michael Kors Holdings, Ltd. (Æ) | | | 26,549 | | | | 1,213 | |
Mohawk Industries, Inc. (Æ) | | | 11,200 | | | | 751 | |
Newell Rubbermaid, Inc. | | | 136,450 | | | | 2,483 | |
News Corp. Class A | | | 13,800 | | | | 271 | |
Nielsen Holdings NV (Æ) | | | 21,818 | | | | 638 | |
Nike, Inc. Class B | | | 170,679 | | | | 19,094 | |
Nordstrom, Inc. | | | 8,100 | | | | 452 | |
Nu Skin Enterprises, Inc. Class A | | | 108,300 | | | | 5,772 | |
NVR, Inc. (Æ) | | | 100 | | | | 78 | |
Omnicom Group, Inc. | | | 6,800 | | | | 349 | |
O’Reilly Automotive, Inc. (Æ) | | | 27,900 | | | | 2,942 | |
Panera Bread Co. Class A (Æ) | | | 4,633 | | | | 732 | |
Penn National Gaming, Inc. (Æ) | | | 5,800 | | | | 261 | |
PetSmart, Inc. | | | 112,977 | | | | 6,582 | |
Polaris Industries, Inc. | | | 99,272 | | | | 7,886 | |
priceline.com, Inc. (Æ) | | | 1,300 | | | | 989 | |
PulteGroup, Inc. (Æ) | | | 119,000 | | | | 1,171 | |
PVH Corp. | | | 18,400 | | | | 1,634 | |
Ralph Lauren Corp. Class A | | | 32,405 | | | | 5,582 | |
Ross Stores, Inc. | | | 65,800 | | | | 4,053 | |
Royal Caribbean Cruises, Ltd. | | | 5,400 | | | | 148 | |
Sally Beauty Holdings, Inc. (Æ) | | | 70,424 | | | | 1,873 | |
Scholastic Corp. | | | 26,300 | | | | 803 | |
Sears Holdings Corp. (Æ) | | | 1,200 | | | | 65 | |
Signet Jewelers, Ltd. | | | 9,500 | | | | 463 | |
Starbucks Corp. | | | 105,569 | | | | 6,058 | |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | | 16,500 | | | | 977 | |
Target Corp. | | | 72,742 | | | | 4,215 | |
Tempur-Pedic International, Inc. (Æ) | | | 16,900 | | | | 994 | |
| | | | |
| | 18 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Tesla Motors, Inc. (Æ) | | | 4,700 | | | | 156 | |
Tiffany & Co. | | | 400 | | | | 27 | |
Time Warner Cable, Inc. (Û) | | | 178,260 | | | | 14,341 | |
Time Warner, Inc. | | | 16,000 | | | | 599 | |
TJX Cos., Inc. (Û) | | | 225,700 | | | | 9,414 | |
Toll Brothers, Inc. (Æ) | | | 14,300 | | | | 363 | |
Tractor Supply Co. | | | 13,200 | | | | 1,299 | |
TripAdvisor, Inc. (Æ) | | | 42,458 | | | | 1,593 | |
TRW Automotive Holdings Corp. (Æ) | | | 14,200 | | | | 649 | |
Tupperware Brands Corp. | | | 42,405 | | | | 2,641 | |
Ulta Salon Cosmetics & Fragrance, Inc. | | | 83,500 | | | | 7,363 | |
VF Corp. | | | 28,600 | | | | 4,349 | |
Viacom, Inc. Class B (Û) | | | 152,943 | | | | 7,095 | |
WABCO Holdings, Inc. (Æ) | | | 20,838 | | | | 1,313 | |
Wal-Mart Stores, Inc. | | | 97,200 | | | | 5,726 | |
Walt Disney Co. (The) | | | 6,110 | | | | 263 | |
Washington Post Co. (The) Class B | | | 200 | | | | 76 | |
Weight Watchers International, Inc. | | | 5,500 | | | | 418 | |
Whirlpool Corp. | | | 80,800 | | | | 5,173 | |
Williams-Sonoma, Inc. | | | 52,039 | | | | 2,013 | |
Wyndham Worldwide Corp. | | | 149,961 | | | | 7,549 | |
Wynn Resorts, Ltd. | | | 6,000 | | | | 800 | |
Yum! Brands, Inc. | | | 58,800 | | | | 4,277 | |
| | | | | | | | |
| | | | | | | 491,823 | |
| | | | | | | | |
| | |
| Consumer Staples - 9.6% | | | | | | | | |
Altria Group, Inc. | | | 115,100 | | | | 3,707 | |
Archer-Daniels-Midland Co. | | | 152,000 | | | | 4,686 | |
Bunge, Ltd. (Û) | | | 186,846 | | | | 12,052 | |
Campbell Soup Co. (Û) | | | 22,300 | | | | 754 | |
Church & Dwight Co., Inc. | | | 59,902 | | | | 3,043 | |
Clorox Co. (The) | | | 34,262 | | | | 2,402 | |
Coca-Cola Co. (The) | | | 114,158 | | | | 8,712 | |
Coca-Cola Enterprises, Inc. | | | 96,800 | | | | 2,916 | |
Colgate-Palmolive Co. | | | 115,386 | | | | 11,416 | |
ConAgra Foods, Inc. (Û) | | | 539,100 | | | | 13,920 | |
Constellation Brands, Inc. Class A (Æ) | | | 131,860 | | | | 2,848 | |
CVS Caremark Corp. (Û) | | | 304,700 | | | | 13,596 | |
Dean Foods Co. (Æ) | | | 394,300 | | | | 4,842 | |
Dr Pepper Snapple Group, Inc. (Û) | | | 452,792 | | | | 18,374 | |
Energizer Holdings, Inc. (Æ) | | | 8,300 | | | | 592 | |
Flowers Foods, Inc. | | | 14,900 | | | | 320 | |
General Mills, Inc. | | | 2,600 | | | | 101 | |
GNC Holdings, Inc. Class A | | | 18,948 | | | | 740 | |
Herbalife, Ltd. | | | 106,829 | | | | 7,512 | |
Hershey Co. (The) (Û) | | | 40,415 | | | | 2,708 | |
HJ Heinz Co. (Û) | | | 72,400 | | | | 3,860 | |
Hormel Foods Corp. | | | 41,200 | | | | 1,197 | |
Ingredion, Inc. | | | 4,100 | | | | 234 | |
JM Smucker Co. (The) | | | 8,800 | | | | 701 | |
Kellogg Co. | | | 9,600 | | | | 485 | |
Kimberly-Clark Corp. | | | 13,400 | | | | 1,051 | |
Kraft Foods, Inc. Class A | | | 85,100 | | | | 3,393 | |
Kroger Co. (The) (Û) | | | 545,218 | | | | 12,687 | |
Lorillard, Inc. (Û) | | | 101,900 | | | | 13,786 | |
McCormick & Co., Inc. | | | 5,000 | | | | 279 | |
Mead Johnson Nutrition Co. Class A | | | 123,641 | | | | 10,579 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Molson Coors Brewing Co. Class B | | | 11,200 | | | | 466 | |
Monster Beverage Corp. (Æ)(Û) | | | 185,450 | | | | 12,047 | |
PepsiCo, Inc. | | | 197,525 | | | | 13,037 | |
Philip Morris International, Inc. (Û) | | | 623,771 | | | | 55,834 | |
Procter & Gamble Co. (The) (Û) | | | 330,041 | | | | 21,004 | |
Ralcorp Holdings, Inc. (Æ) | | | 46,621 | | | | 3,394 | |
Reynolds American, Inc. | | | 13,200 | | | | 539 | |
Sara Lee Corp. | | | 138,400 | | | | 3,050 | |
Smithfield Foods, Inc. (Æ) | | | 4,800 | | | | 101 | |
SUPERVALU, Inc. | | | 754,986 | | | | 4,485 | |
Sysco Corp. | | | 15,600 | | | | 451 | |
Tyson Foods, Inc. Class A | | | 468,930 | | | | 8,558 | |
Walgreen Co. | | | 2,100 | | | | 74 | |
Whole Foods Market, Inc. | | | 9,100 | | | | 756 | |
| | | | | | | | |
| | | | | | | 287,289 | |
| | | | | | | | |
| | |
| Energy - 11.8% | | | | | | | | |
Alpha Natural Resources, Inc. (Æ) | | | 157,200 | | | | 2,536 | |
Anadarko Petroleum Corp. | | | 6,700 | | | | 490 | |
Apache Corp. | | | 137,250 | | | | 13,168 | |
Atwood Oceanics, Inc. (Æ) | | | 17,600 | | | | 780 | |
Baker Hughes, Inc. | | | 25,219 | | | | 1,112 | |
Berry Petroleum Co. Class A | | | 21,500 | | | | 979 | |
Cabot Oil & Gas Corp. | | | 73,400 | | | | 2,579 | |
Cameron International Corp. (Æ) | | | 20,000 | | | | 1,025 | |
Chesapeake Energy Corp. | | | 12,600 | | | | 232 | |
Chevron Corp. (Û) | | | 511,209 | | | | 54,474 | |
Concho Resources, Inc. (Æ) | | | 5,000 | | | | 536 | |
ConocoPhillips (Û) | | | 216,900 | | | | 15,537 | |
Continental Resources, Inc. (Æ) | | | 11,900 | | | | 1,062 | |
Core Laboratories NV | | | 3,700 | | | | 507 | |
Denbury Resources, Inc. (Æ) | | | 37,700 | | | | 718 | |
Dresser-Rand Group, Inc. (Æ) | | | 12,300 | | | | 599 | |
EOG Resources, Inc. (Û) | | | 58,050 | | | | 6,374 | |
EQT Corp. | | | 222,255 | | | | 11,073 | |
Exterran Holdings, Inc. (Æ) | | | 43,800 | | | | 592 | |
Exxon Mobil Corp. (Û) | | | 742,514 | | | | 64,109 | |
FMC Technologies, Inc. (Æ) | | | 25,900 | | | | 1,217 | |
Halliburton Co. (Û) | | | 513,483 | | | | 17,571 | |
Helmerich & Payne, Inc. | | | 82,100 | | | | 4,219 | |
Hess Corp. (Û) | | | 57,300 | | | | 2,988 | |
HollyFrontier Corp. | | | 254,280 | | | | 7,837 | |
Hubbell, Inc. Class B (Æ) | | | 19,100 | | | | 1,533 | |
Kinder Morgan, Inc. | | | 14,100 | | | | 506 | |
Marathon Oil Corp. (Û) | | | 657,500 | | | | 19,291 | |
Marathon Petroleum Corp. | | | 424,151 | | | | 17,649 | |
Murphy Oil Corp. (Û) | | | 141,200 | | | | 7,762 | |
Nabors Industries, Ltd. (Æ) | | | 84,000 | | | | 1,399 | |
National Oilwell Varco, Inc. | | | 33,800 | | | | 2,561 | |
Noble Energy, Inc. (Û) | | | 61,240 | | | | 6,082 | |
Occidental Petroleum Corp. | | | 4,500 | | | | 410 | |
Oceaneering International, Inc. | | | 12,477 | | | | 644 | |
Oil States International, Inc. (Æ) | | | 16,900 | | | | 1,345 | |
Patterson-UTI Energy, Inc. | | | 361,910 | | | | 5,852 | |
Phillips 66 Class W (Æ) | | | 57,799 | | | | 1,968 | |
Pioneer Natural Resources Co. | | | 7,700 | | | | 892 | |
Plains Exploration & Production Co. (Æ) | | | 84,200 | | | | 3,440 | |
| | |
| Russell U.S. Quantitative Equity Fund | | 19 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
QEP Resources, Inc. | | | 500 | | | | 15 | |
Range Resources Corp. (Û) | | | 106,400 | | | | 7,093 | |
Rosetta Resources, Inc. (Æ) | | | 14,800 | | | | 744 | |
Rowan Cos., Inc. Class A (Æ) | | | 3,000 | | | | 104 | |
SandRidge Energy, Inc. (Æ) | | | 85,800 | | | | 686 | |
Schlumberger, Ltd. | | | 40,139 | | | | 2,976 | |
SM Energy Co. | | | 90,211 | | | | 5,964 | |
Southwestern Energy Co. (Æ) | | | 4,800 | | | | 152 | |
Spectra Energy Corp. | | | 18,100 | | | | 556 | |
Sunoco, Inc. | | | 108,400 | | | | 5,343 | |
Superior Energy Services, Inc. (Æ) | | | 161,800 | | | | 4,356 | |
Tesoro Corp. (Æ) | | | 220,700 | | | | 5,131 | |
Valero Energy Corp. (Û) | | | 1,060,523 | | | | 26,195 | |
Western Refining, Inc. | | | 59,500 | | | | 1,133 | |
Whiting Petroleum Corp. (Æ) | | | 63,676 | | | | 3,642 | |
Williams Cos., Inc. (The) | | | 23,400 | | | | 796 | |
WPX Energy, Inc. (Æ) | | | 202,727 | | | | 3,562 | |
| | | | | | | | |
| | | | | | | 352,096 | |
| | | | | | | | |
|
| Financial Services - 13.6% | |
ACE, Ltd. (Û) | | | 83,900 | | | | 6,374 | |
Affiliated Managers Group, Inc. (Æ) | | | 11,163 | | | | 1,268 | |
Aflac, Inc. | | | 102,524 | | | | 4,618 | |
Alleghany Corp. (Æ) | | | 300 | | | | 103 | |
Alliance Data Systems Corp. (Æ) | | | 15,800 | | | | 2,030 | |
Allied World Assurance Co. Holdings AG | | | 77,683 | | | | 5,590 | |
Allstate Corp. (The) (Û) | | | 70,900 | | | | 2,363 | |
American Capital Agency Corp. (ö) | | | 44,087 | | | | 1,377 | |
American Capital, Ltd. (Æ) | | | 14,400 | | | | 143 | |
American Express Co. | | | 386,545 | | | | 23,274 | |
American Financial Group, Inc. | | | 119,887 | | | | 4,666 | |
American International Group, Inc. (Æ) | | | 10,900 | | | | 371 | |
American Tower Corp. Class A (ö) | | | 7,500 | | | | 492 | |
Ameriprise Financial, Inc. | | | 219,468 | | | | 11,897 | |
Aon PLC | | | 45,500 | | | | 2,357 | |
Arch Capital Group, Ltd. (Æ) | | | 14,512 | | | | 570 | |
Arthur J Gallagher & Co. | | | 15,100 | | | | 567 | |
Aspen Insurance Holdings, Ltd. | | | 65,500 | | | | 1,855 | |
Associated Banc-Corp. | | | 30,300 | | | | 404 | |
Assurant, Inc. | | | 188,468 | | | | 7,603 | |
Assured Guaranty, Ltd. | | | 15,900 | | | | 226 | |
AvalonBay Communities, Inc. (ö) | | | 3,066 | | | | 446 | |
Axis Capital Holdings, Ltd. | | | 46,000 | | | | 1,565 | |
Bank of New York Mellon Corp. (The) (Û) | | | 160,100 | | | | 3,786 | |
BB&T Corp. | | | 31,900 | | | | 1,022 | |
Berkshire Hathaway, Inc. Class B (Æ) | | | 52,900 | | | | 4,256 | |
Broadridge Financial Solutions, Inc. | | | 16,100 | | | | 374 | |
Camden Property Trust (ö) | | | 38,363 | | | | 2,596 | |
Capital One Financial Corp. | | | 50,000 | | | | 2,774 | |
Capitol Federal Financial, Inc. | | | 7,700 | | | | 91 | |
CBOE Holdings, Inc. | | | 500 | | | | 13 | |
Chubb Corp. (The) (Û) | | | 52,900 | | | | 3,865 | |
Cincinnati Financial Corp. | | | 4,100 | | | | 146 | |
Citigroup, Inc. | | | 136,240 | | | | 4,501 | |
Comerica, Inc. | | | 21,700 | | | | 695 | |
Commerce Bancshares, Inc. | | | 4,655 | | | | 187 | |
CommonWealth REIT (ö) | | | 82,200 | | | | 1,541 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Cullen/Frost Bankers, Inc. | | | 500 | | | | 30 | |
DDR Corp. (ö) | | | 138,105 | | | | 2,044 | |
Digital Realty Trust, Inc. (ö) | | | 20,700 | | | | 1,554 | |
Discover Financial Services | | | 412,800 | | | | 13,994 | |
Douglas Emmett, Inc. (ö) | | | 1,500 | | | | 35 | |
Duke Realty Corp. (ö) | | | 134,743 | | | | 1,997 | |
E*Trade Financial Corp. (Æ) | | | 15,700 | | | | 167 | |
East West Bancorp, Inc. | | | 18,100 | | | | 412 | |
Endurance Specialty Holdings, Ltd. | | | 47,010 | | | | 1,889 | |
Equifax, Inc. | | | 7,600 | | | | 348 | |
Equity Residential (ö) | | | 5,100 | | | | 313 | |
Erie Indemnity Co. Class A | | | 700 | | | | 54 | |
Essex Property Trust, Inc. (ö) | | | 6,100 | | | | 964 | |
Everest Re Group, Ltd. | | | 53,923 | | | | 5,344 | |
Fair Isaac Corp. | | | 60,400 | | | | 2,591 | |
Federal Realty Investment Trust (ö) | | | 1,500 | | | | 151 | |
Fidelity National Financial, Inc. Class A | | | 48,000 | | | | 925 | |
Fidelity National Information Services, Inc. | | | 168,800 | | | | 5,684 | |
Fifth Third Bancorp (Û) | | | 867,588 | | | | 12,346 | |
First American Financial Corp. | | | 27,200 | | | | 456 | |
First Horizon National Corp. | | | 24,700 | | | | 227 | |
First Republic Bank (Æ) | | | 31,328 | | | | 1,035 | |
Fiserv, Inc. (Æ) | | | 10,100 | | | | 710 | |
FleetCor Technologies, Inc. (Æ) | | | 6,579 | | | | 260 | |
Franklin Resources, Inc. | | | 1,100 | | | | 138 | |
Fulton Financial Corp. | | | 114,900 | | | | 1,205 | |
Genworth Financial, Inc. Class A (Æ) | | | 17,500 | | | | 105 | |
Global Payments, Inc. | | | 102,933 | | | | 4,779 | |
Goldman Sachs Group, Inc. (The) | | | 101,040 | | | | 11,635 | |
Green Dot Corp. Class A (Æ) | | | 53,580 | | | | 1,414 | |
Hanover Insurance Group, Inc. (The) | | | 36,300 | | | | 1,465 | |
Hartford Financial Services Group, Inc. | | | 7,400 | | | | 152 | |
HCP, Inc. (ö) | | | 4,800 | | | | 199 | |
Health Care REIT, Inc. (ö) | | | 3,000 | | | | 170 | |
Heartland Payment Systems, Inc. | | | 37,172 | | | | 1,133 | |
Hospitality Properties Trust (ö) | | | 158,748 | | | | 4,378 | |
Host Hotels & Resorts, Inc. (ö) | | | 27,600 | | | | 459 | |
Huntington Bancshares, Inc. | | | 860,694 | | | | 5,758 | |
Interactive Brokers Group, Inc. Class A | | | 92,700 | | | | 1,406 | |
IntercontinentalExchange, Inc. (Æ) | | | 400 | | | | 53 | |
Invesco, Ltd. | | | 14,000 | | | | 348 | |
Jones Lang LaSalle, Inc. | | | 24,129 | | | | 1,929 | |
JPMorgan Chase & Co. (Û) | | | 904,000 | | | | 38,854 | |
KeyCorp | | | 1,642,428 | | | | 13,205 | |
Legg Mason, Inc. | | | 9,200 | | | | 240 | |
Leucadia National Corp. | | | 45,100 | | | | 1,121 | |
Liberty Property Trust (ö) | | | 3,900 | | | | 142 | |
Loews Corp. | | | 4,500 | | | | 185 | |
M&T Bank Corp. | | | 900 | | | | 78 | |
Markel Corp. (Æ) | | | 3,323 | | | | 1,463 | |
MarketAxess Holdings, Inc. | | | 35,010 | | | | 1,201 | |
Marsh & McLennan Cos., Inc. | | | 67,500 | | | | 2,258 | |
Mastercard, Inc. Class A (Û) | | | 29,920 | | | | 13,532 | |
MBIA, Inc. (Æ) | | | 62,200 | | | | 627 | |
MetLife, Inc. | | | 17,200 | | | | 620 | |
Moody’s Corp. | | | 51,000 | | | | 2,088 | |
Morgan Stanley | | | 796,900 | | | | 13,770 | |
| | | | |
| | 20 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
PartnerRe, Ltd. - ADR | | | 68,900 | | | | 4,797 | |
People’s United Financial, Inc. | | | 117,200 | | | | 1,446 | |
Piedmont Office Realty Trust, Inc. Class A (ö) | | | 29,600 | | | | 525 | |
Plum Creek Timber Co., Inc. (ö) | | | 1,900 | | | | 80 | |
PNC Financial Services Group, Inc. | | | 95,900 | | | | 6,360 | |
Post Properties, Inc. (ö) | | | 31,000 | | | | 1,510 | |
Principal Financial Group, Inc. | | | 15,900 | | | | 440 | |
Progressive Corp. (The) | | | 23,100 | | | | 492 | |
Protective Life Corp. | | | 20,500 | | | | 600 | |
Prudential Financial, Inc. (Û) | | | 111,800 | | | | 6,768 | |
Public Storage (ö)(Û) | | | 48,360 | | | | 6,928 | |
Raymond James Financial, Inc. | | | 35,041 | | | | 1,283 | |
Rayonier, Inc. (ö) | | | 33,050 | | | | 1,499 | |
Regions Financial Corp. | | | 392,900 | | | | 2,648 | |
Reinsurance Group of America, Inc. Class A | | | 66,960 | | | | 3,893 | |
RenaissanceRe Holdings, Ltd. | | | 1,600 | | | | 125 | |
Selective Insurance Group, Inc. | | | 16,000 | | | | 280 | |
Simon Property Group, Inc. (ö) (Û) | | | 73,460 | | | | 11,430 | |
SL Green Realty Corp. (ö) | | | 1,800 | | | | 148 | |
StanCorp Financial Group, Inc. | | | 3,600 | | | | 138 | |
State Street Corp. (Û) | | | 101,500 | | | | 4,691 | |
SunTrust Banks, Inc. | | | 11,700 | | | | 284 | |
Symetra Financial Corp. | | | 53,900 | | | | 655 | |
Taubman Centers, Inc. (ö) | | | 22,948 | | | | 1,771 | |
TCF Financial Corp. | | | 13,800 | | | | 158 | |
TD Ameritrade Holding Corp. | | | 6,800 | | | | 128 | |
Torchmark Corp. | | | 73,500 | | | | 3,580 | |
Total System Services, Inc. | | | 185,800 | | | | 4,370 | |
Travelers Cos., Inc. (The) (Û) | | | 106,200 | | | | 6,831 | |
UDR, Inc. (ö) | | | 2,700 | | | | 71 | |
US Bancorp | | | 150,700 | | | | 4,848 | |
Validus Holdings, Ltd. | | | 27,300 | | | | 887 | |
Valley National Bancorp | | | 29,500 | | | | 372 | |
Visa, Inc. Class A | | | 77,200 | | | | 9,494 | |
Washington Federal, Inc. | | | 30,700 | | | | 539 | |
Wells Fargo & Co. (Û) | | | 830,999 | | | | 27,780 | |
Western Union Co. (The) | | | 42,900 | | | | 789 | |
White Mountains Insurance Group, Ltd. | | | 700 | | | | 366 | |
WR Berkley Corp. | | | 36,400 | | | | 1,371 | |
Zions Bancorporation | | | 48,451 | | | | 988 | |
| | | | | | | | |
| | | | | | | 407,009 | |
| | | | | | | | |
| | |
| Health Care - 10.8% | | | | | | | | |
Abbott Laboratories | | | 43,556 | | | | 2,703 | |
Aetna, Inc. (Û) | | | 649,506 | | | | 28,604 | |
Alexion Pharmaceuticals, Inc. (Æ) | | | 29,500 | | | | 2,664 | |
Allergan, Inc. | | | 17,800 | | | | 1,709 | |
AMERIGROUP Corp. Class A (Æ) | | | 700 | | | | 43 | |
AmerisourceBergen Corp. Class A (Û) | | | 169,800 | | | | 6,318 | |
Amgen, Inc. | | | 85,500 | | | | 6,080 | |
Analogic Corp. | | | 6,400 | | | | 437 | |
Auxilium Pharmaceuticals, Inc. (Æ) | | | 114,506 | | | | 2,052 | |
Baxter International, Inc. | | | 32,500 | | | | 1,801 | |
Biogen Idec, Inc. (Æ)(Û) | | | 179,600 | | | | 24,068 | |
BioMarin Pharmaceutical, Inc. (Æ) | | | 15,000 | | | | 520 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Bio-Rad Laboratories, Inc. Class A (Æ) | | | 7,800 | | | | 842 | |
Boston Scientific Corp. (Æ)(Û) | | | 918,900 | | | | 5,752 | |
Bristol-Myers Squibb Co. | | | 60,400 | | | | 2,016 | |
Cardinal Health, Inc. (Û) | | | 291,834 | | | | 12,336 | |
CareFusion Corp. (Æ) | | | 138,500 | | | | 3,589 | |
Celgene Corp. (Æ) | | | 167,600 | | | | 12,221 | |
Centene Corp. (Æ) | | | 27,500 | | | | 1,089 | |
Cerner Corp. (Æ) | | | 26,700 | | | | 2,165 | |
Charles River Laboratories International, Inc. (Æ) | | | 33,998 | | | | 1,208 | |
Cigna Corp. | | | 18,300 | | | | 846 | |
CONMED Corp. | | | 13,700 | | | | 392 | |
Coventry Health Care, Inc. | | | 132,500 | | | | 3,974 | |
Covidien PLC | | | 5,800 | | | | 320 | |
CR Bard, Inc. (Û) | | | 56,600 | | | | 5,601 | |
Cubist Pharmaceuticals, Inc. (Æ) | | | 43,100 | | | | 1,822 | |
Dentsply International, Inc. | | | 17,100 | | | | 702 | |
Eli Lilly & Co. (Û) | | | 254,795 | | | | 10,546 | |
Gilead Sciences, Inc. (Æ)(Û) | | | 333,800 | | | | 17,361 | |
Health Net, Inc. (Æ) | | | 19,508 | | | | 695 | |
Henry Schein, Inc. (Æ) | | | 15,400 | | | | 1,182 | |
Hill-Rom Holdings, Inc. | | | 14,687 | | | | 477 | |
Humana, Inc. (Û) | | | 309,499 | | | | 24,970 | |
IDEXX Laboratories, Inc. (Æ) | | | 2,400 | | | | 211 | |
Illumina, Inc. (Æ) | | | 3,000 | | | | 134 | |
Intuitive Surgical, Inc. (Æ)(Û) | | | 14,150 | | | | 8,182 | |
Johnson & Johnson (Û) | | | 341,300 | | | | 22,215 | |
Laboratory Corp. of America Holdings (Æ) | | | 7,700 | | | | 677 | |
Magellan Health Services, Inc. (Æ) | | | 23,400 | | | | 1,036 | |
McKesson Corp. | | | 161,800 | | | | 14,790 | |
Medicis Pharmaceutical Corp. Class A | | | 27,000 | | | | 1,039 | |
Medtronic, Inc. | | | 5,100 | | | | 195 | |
Merck & Co., Inc. | | | 164,931 | | | | 6,472 | |
Molina Healthcare, Inc. (Æ) | | | 57,700 | | | | 1,480 | |
Omnicare, Inc. | | | 3,700 | | | | 129 | |
Perrigo Co. | | | 5,100 | | | | 535 | |
Pfizer, Inc. (Û) | | | 1,419,309 | | | | 32,545 | |
Pharmacyclics, Inc. (Æ) | | | 28,888 | | | | 796 | |
Quest Diagnostics, Inc. | | | 3,500 | | | | 202 | |
Regeneron Pharmaceuticals, Inc. (Æ) | | | 10,065 | | | | 1,361 | |
St. Jude Medical, Inc. | | | 17,100 | | | | 662 | |
Teleflex, Inc. | | | 18,000 | | | | 1,128 | |
Thermo Fisher Scientific, Inc. | | | 7,400 | | | | 412 | |
Thoratec Corp. (Æ) | | | 48,800 | | | | 1,699 | |
UnitedHealth Group, Inc. | | | 187,500 | | | | 10,528 | |
Varian Medical Systems, Inc. (Æ) | | | 600 | | | | 38 | |
Warner Chilcott PLC Class A (Æ) | | | 330,000 | | | | 7,177 | |
Watson Pharmaceuticals, Inc. Class B (Æ) | | | 90,920 | | | | 6,852 | |
WellCare Health Plans, Inc. (Æ) | | | 59,700 | | | | 3,652 | |
WellPoint, Inc. (Û) | | | 172,200 | | | | 11,679 | |
Zimmer Holdings, Inc. | | | 2,400 | | | | 151 | |
| | | | | | | | |
| | | | | | | 323,082 | |
| | | | | | | | |
|
| Materials and Processing - 5.3% | |
Agrium, Inc. | | | 52,900 | | | | 4,650 | |
Air Products & Chemicals, Inc. | | | 9,800 | | | | 838 | |
Airgas, Inc. | | | 20,100 | | | | 1,842 | |
| | |
| Russell U.S. Quantitative Equity Fund | | 21 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Albemarle Corp. | | | 2,600 | | | | 170 | |
Alcoa, Inc. (Û) | | | 336,900 | | | | 3,278 | |
Allegheny Technologies, Inc. | | | 91,025 | | | | 3,909 | |
Aptargroup, Inc. | | | 4,500 | | | | 245 | |
Ashland, Inc. | | | 28,900 | | | | 1,904 | |
Ball Corp. | | | 28,600 | | | | 1,194 | |
Brown-Forman Corp. Class B - ADR | | | 13,500 | | | | 1,166 | |
Carpenter Technology Corp. | | | 12,800 | | | | 712 | |
Celanese Corp. Class A | | | 19,100 | | | | 926 | |
CF Industries Holdings, Inc. | | | 84,768 | | | | 16,365 | |
Chemtura Corp. (Æ) | | | 112,500 | | | | 1,915 | |
Cliffs Natural Resources, Inc. | | | 4,100 | | | | 255 | |
Commercial Metals Co. | | | 109,456 | | | | 1,618 | |
Crown Holdings, Inc. (Æ) | | | 23,100 | | | | 854 | |
Domtar Corp. | | | 31,300 | | | | 2,738 | |
Dow Chemical Co. (The) | | | 3,400 | | | | 115 | |
Eastman Chemical Co. (Û) | | | 141,409 | | | | 7,632 | |
Ecolab, Inc. | | | 49,100 | | | | 3,127 | |
EI du Pont de Nemours & Co. | | | 51,900 | | | | 2,775 | |
Fastenal Co. | | | 51,300 | | | | 2,402 | |
Freeport-McMoRan Copper & Gold, Inc. (Û) | | | 224,356 | | | | 8,593 | |
International Flavors & Fragrances, Inc. | | | 4,800 | | | | 289 | |
International Paper Co. | | | 4,400 | | | | 147 | |
LyondellBasell Industries NV Class A | | | 227,553 | | | | 9,507 | |
Masco Corp. | | | 38,000 | | | | 501 | |
MeadWestvaco Corp. | | | 160,980 | | | | 5,122 | |
Monsanto Co. | | | 15,400 | | | | 1,173 | |
Mosaic Co. (The) | | | 700 | | | | 37 | |
Newmont Mining Corp. | | | 7,500 | | | | 357 | |
Nucor Corp. | | | 32,300 | | | | 1,267 | |
Owens Corning (Æ) | | | 4,600 | | | | 158 | |
Owens-Illinois, Inc. (Æ) | | | 33,900 | | | | 788 | |
Post Holdings, Inc. (Æ) | | | 550 | | | | 16 | |
PPG Industries, Inc. (Û) | | | 306,826 | | | | 32,290 | |
Praxair, Inc. | | | 22,500 | | | | 2,603 | |
Precision Castparts Corp. | | | 6,600 | | | | 1,164 | |
Reliance Steel & Aluminum Co. | | | 10,800 | | | | 604 | |
Rock-Tenn Co. Class A | | | 6,900 | | | | 430 | |
Rockwood Holdings, Inc. (Æ) | | | 46,710 | | | | 2,585 | |
Royal Gold, Inc. | | | 20,100 | | | | 1,245 | |
RPM International, Inc. | | | 16,100 | | | | 428 | |
Sealed Air Corp. | | | 113,627 | | | | 2,179 | |
Sherwin-Williams Co. (The) | | | 44,080 | | | | 5,302 | |
Sigma-Aldrich Corp. | | | 33,000 | | | | 2,340 | |
Southern Copper Corp. | | | 20,000 | | | | 658 | |
Steel Dynamics, Inc. | | | 22,400 | | | | 286 | |
Timken Co. | | | 89,193 | | | | 5,040 | |
Titanium Metals Corp. | | | 5,300 | | | | 78 | |
Valspar Corp. | | | 62,500 | | | | 3,197 | |
WR Grace & Co. (Æ) | | | 161,855 | | | | 9,648 | |
| | | | | | | | |
| | | | | | | 158,662 | |
| | | | | | | | |
|
| Producer Durables - 11.1% | |
3M Co. | | | 3,600 | | | | 322 | |
Accenture PLC Class A | | | 301,090 | | | | 19,556 | |
AGCO Corp. (Æ) | | | 113,600 | | | | 5,290 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Agilent Technologies, Inc. | | | 3,500 | | | | 148 | |
Alaska Air Group, Inc. (Æ) | | | 12,600 | | | | 426 | |
Ametek, Inc. | | | 32,400 | | | | 1,631 | |
AO Smith Corp. | | | 59,587 | | | | 2,836 | |
Automatic Data Processing, Inc. | | | 60,500 | | | | 3,365 | |
Babcock & Wilcox Co. (The) (Æ) | | | 82,800 | | | | 2,037 | |
BE Aerospace, Inc. (Æ) | | | 14,300 | | | | 672 | |
Boeing Co. (The) (Û) | | | 121,600 | | | | 9,339 | |
Booz Allen Hamilton Holding Corp. Class A | | | 28,400 | | | | 486 | |
Brink’s Co. (The) | | | 7,700 | | | | 196 | |
Carlisle Cos., Inc. | | | 19,900 | | | | 1,096 | |
Caterpillar, Inc. | | | 211,556 | | | | 21,742 | |
CH Robinson Worldwide, Inc. | | | 5,300 | | | | 317 | |
Chicago Bridge & Iron Co. NV | | | 153,843 | | | | 6,834 | |
Cintas Corp. | | | 65,400 | | | | 2,562 | |
Con-way, Inc. | | | 149,116 | | | | 4,846 | |
Copa Holdings SA Class A | | | 7,800 | | | | 634 | |
Copart, Inc. (Æ) | | | 39,600 | | | | 1,046 | |
Corporate Executive Board Co. (The) | | | 24,400 | | | | 1,009 | |
Corrections Corp. of America | | | 10,900 | | | | 315 | |
Crane Co. | | | 6,300 | | | | 278 | |
CSX Corp. | | | 75,900 | | | | 1,693 | |
Cummins, Inc. | | | 73,740 | | | | 8,541 | |
Danaher Corp. | | | 8,900 | | | | 482 | |
Deere & Co. | | | 24,800 | | | | 2,042 | |
Delta Air Lines, Inc. (Æ) | | | 1,382,100 | | | | 15,148 | |
Donaldson Co., Inc. | | | 20,000 | | | | 693 | |
Dover Corp. | | | 34,500 | | | | 2,162 | |
Eaton Corp. | | | 74,600 | | | | 3,594 | |
EMCOR Group, Inc. | | | 67,700 | | | | 1,985 | |
FedEx Corp. (Û) | | | 198,991 | | | | 17,559 | |
Flowserve Corp. | | | 1,200 | | | | 138 | |
Fluor Corp. (Û) | | | 82,600 | | | | 4,770 | |
Gardner Denver, Inc. | | | 12,000 | | | | 782 | |
GATX Corp. | | | 14,100 | | | | 604 | |
General Cable Corp. (Æ) | | | 10,400 | | | | 306 | |
General Dynamics Corp. | | | 38,500 | | | | 2,599 | |
General Electric Co. (Û) | | | 1,455,620 | | | | 28,501 | |
Genpact, Ltd. (Æ) | | | 42,400 | | | | 707 | |
Goodrich Corp. | | | 8,300 | | | | 1,041 | |
Graco, Inc. | | | 800 | | | | 43 | |
GrafTech International, Ltd. (Æ) | | | 48,900 | | | | 574 | |
Gulfmark Offshore, Inc. Class A (Æ) | | | 24,393 | | | | 1,175 | |
Honeywell International, Inc. | | | 32,200 | | | | 1,953 | |
IHS, Inc. Class A (Æ) | | | 2,500 | | | | 253 | |
Iron Mountain, Inc. | | | 54,500 | | | | 1,655 | |
Itron, Inc. (Æ) | | | 66,270 | | | | 2,704 | |
JB Hunt Transport Services, Inc. | | | 5,000 | | | | 277 | |
Joy Global, Inc. | | | 15,700 | | | | 1,111 | |
Kansas City Southern | | | 15,900 | | | | 1,225 | |
KBR, Inc. (Û) | | | 201,000 | | | | 6,806 | |
Kennametal, Inc. | | | 10,700 | | | | 452 | |
Kirby Corp. (Æ) | | | 20,100 | | | | 1,334 | |
Knight Transportation, Inc. | | | 68,600 | | | | 1,126 | |
L-3 Communications Holdings, Inc. | | | 8,100 | | | | 596 | |
Landstar System, Inc. | | | 17,100 | | | | 916 | |
| | | | |
| | 22 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Lexmark International, Inc. Class A | | | 46,198 | | | | 1,391 | |
Lincoln Electric Holdings, Inc. | | | 13,800 | | | | 676 | |
Liquidity Services, Inc. (Æ) | | | 30,100 | | | | 1,605 | |
Lockheed Martin Corp. (Û) | | | 86,400 | | | | 7,823 | |
Manitowoc Co., Inc. (The) | | | 45,400 | | | | 629 | |
Manpower, Inc. | | | 115,500 | | | | 4,920 | |
Mettler-Toledo International, Inc. (Æ) | | | 2,000 | | | | 359 | |
MSC Industrial Direct Co., Inc. Class A | | | 64,629 | | | | 4,764 | |
Navistar International Corp. (Æ) | | | 85,000 | | | | 2,886 | |
Norfolk Southern Corp. | | | 18,800 | | | | 1,371 | |
Northrop Grumman Corp. | | | 107,200 | | | | 6,784 | |
Oshkosh Corp. (Æ) | | | 22,900 | | | | 523 | |
PACCAR, Inc. | | | 10,000 | | | | 430 | |
Parker Hannifin Corp. | | | 101,663 | | | | 8,915 | |
Paychex, Inc. | | | 24,700 | | | | 765 | |
Pentair, Inc. | | | 9,000 | | | | 390 | |
Quanta Services, Inc. (Æ) | | | 7,000 | | | | 155 | |
Raytheon Co. (Û) | | | 135,100 | | | | 7,314 | |
Robert Half International, Inc. | | | 10,300 | | | | 307 | |
Rockwell Automation, Inc. | | | 900 | | | | 70 | |
Roper Industries, Inc. | | | 7,300 | | | | 744 | |
RR Donnelley & Sons Co. | | | 55,172 | | | | 690 | |
Ryder System, Inc. | | | 97,746 | | | | 4,762 | |
Shaw Group, Inc. (The) (Æ) | | | 69,200 | | | | 2,095 | |
Stanley Black & Decker, Inc. | | | 83,562 | | | | 6,113 | |
Stericycle, Inc. (Æ) | | | 3,500 | | | | 303 | |
Terex Corp. (Æ) | | | 15,600 | | | | 353 | |
Textron, Inc. | | | 202,100 | | | | 5,384 | |
Towers Watson & Co. Class A | | | 15,500 | | | | 1,014 | |
TransDigm Group, Inc. (Æ) | | | 38,290 | | | | 4,829 | |
Trimble Navigation, Ltd. (Æ) | | | 3,000 | | | | 162 | |
Trinity Industries, Inc. | | | 30,300 | | | | 897 | |
Tyco International, Ltd. | | | 289,581 | | | | 16,254 | |
Union Pacific Corp. (Û) | | | 125,970 | | | | 14,164 | |
United Continental Holdings, Inc. (Æ) | | | 6,100 | | | | 134 | |
United Parcel Service, Inc. Class B | | | 1,600 | | | | 125 | |
United Technologies Corp. | | | 3,900 | | | | 318 | |
URS Corp. | | | 133,434 | | | | 5,512 | |
UTi Worldwide, Inc. | | | 83,305 | | | | 1,389 | |
Verisk Analytics, Inc. Class A (Æ) | | | 30,300 | | | | 1,483 | |
Wabtec Corp. | | | 7,100 | | | | 552 | |
Waste Connections, Inc. | | | 20,550 | | | | 662 | |
Werner Enterprises, Inc. | | | 160,904 | | | | 3,800 | |
WESCO International, Inc. (Æ) | | | 5,500 | | | | 365 | |
WW Grainger, Inc. | | | 16,040 | | | | 3,333 | |
Xylem, Inc. | | | 130,066 | | | | 3,626 | |
| | | | | | | | |
| | | | | | | 333,670 | |
| | | | | | | | |
| | |
| Technology - 19.1% | | | | | | | | |
Activision Blizzard, Inc. (Û) | | | 480,900 | | | | 6,189 | |
Adobe Systems, Inc. (Æ) | | | 63,400 | | | | 2,128 | |
Akamai Technologies, Inc. (Æ) | | | 4,300 | | | | 140 | |
Amdocs, Ltd. | | | 165,200 | | | | 5,286 | |
Analog Devices, Inc. | | | 10,200 | | | | 398 | |
Ansys, Inc. (Æ) | | | 2,200 | | | | 148 | |
AOL, Inc. (Æ) | | | 6,100 | | | | 153 | |
Apple, Inc. (Æ)(Û) | | | 224,181 | | | | 130,975 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Autodesk, Inc. (Æ)(Û) | | | 155,700 | | | | 6,130 | |
Avago Technologies, Ltd. | | | 23,900 | | | | 824 | |
Avnet, Inc. (Æ) | | | 132,243 | | | | 4,771 | |
BMC Software, Inc. (Æ) | | | 358,320 | | | | 14,784 | |
Broadcom Corp. Class A (Æ) | | | 7,900 | | | | 289 | |
Brocade Communications Systems, Inc. (Æ) | | | 91,400 | | | | 506 | |
CA, Inc. (Û) | | | 209,100 | | | | 5,524 | |
Cadence Design Systems, Inc. (Æ) | | | 575,644 | | | | 6,718 | |
Ciena Corp. (Æ) | | | 186,600 | | | | 2,765 | |
Cisco Systems, Inc. (Û) | | | 1,972,937 | | | | 39,755 | |
Citrix Systems, Inc. (Æ) | | | 5,200 | | | | 445 | |
Cognizant Technology Solutions Corp. Class A (Æ) | | | 12,900 | | | | 946 | |
Computer Sciences Corp. | | | 179,843 | | | | 5,046 | |
Comverse Technology, Inc. (Æ) | | | 210,100 | | | | 1,355 | |
Crown Castle International Corp. (Æ) | | | 6,700 | | | | 379 | |
Cypress Semiconductor Corp. (Æ) | | | 6,400 | | | | 99 | |
Dell, Inc. (Æ) | | | 110,800 | | | | 1,814 | |
DST Systems, Inc. | | | 2,300 | | | | 129 | |
Electronic Arts, Inc. (Æ) | | | 414,788 | | | | 6,379 | |
EMC Corp. (Æ) | | | 3,600 | | | | 102 | |
Emulex Corp. (Æ) | | | 127,200 | | | | 1,104 | |
Equinix, Inc. (Æ) | | | 14,399 | | | | 2,364 | |
F5 Networks, Inc. (Æ) | | | 30,900 | | | | 4,138 | |
Fortinet, Inc. (Æ) | | | 238,200 | | | | 6,222 | |
Gartner, Inc. (Æ) | | | 80,300 | | | | 3,517 | |
Google, Inc. Class A (Æ) | | | 18,800 | | | | 11,378 | |
Hewlett-Packard Co. (Û) | | | 267,500 | | | | 6,623 | |
IAC/InterActiveCorp | | | 210,008 | | | | 10,112 | |
Informatica Corp. (Æ) | | | 2,100 | | | | 97 | |
Ingram Micro, Inc. Class A (Æ) | | | 51,815 | | | | 1,008 | |
Integrated Device Technology, Inc. (Æ) | | | 234,100 | | | | 1,585 | |
Intel Corp. (Û) | | | 691,900 | | | | 19,650 | |
International Business Machines Corp. (Û) | | | 136,530 | | | | 28,273 | |
Intersil Corp. Class A | | | 165,923 | | | | 1,704 | |
Intuit, Inc. | | | 184,002 | | | | 10,667 | |
Jabil Circuit, Inc. | | | 21,400 | | | | 502 | |
JDS Uniphase Corp. (Æ) | | | 169,810 | | | | 2,063 | |
KLA-Tencor Corp. | | | 35,700 | | | | 1,862 | |
Lam Research Corp. (Æ) | | | 17,600 | | | | 733 | |
Lambda TD Software, Inc. (Æ) | | | 118,736 | | | | 1,369 | |
Linear Technology Corp. | | | 4,700 | | | | 154 | |
LSI Corp. (Æ)(Û) | | | 1,934,234 | | | | 15,551 | |
Maxim Integrated Products, Inc. | | | 155,200 | | | | 4,591 | |
Mentor Graphics Corp. (Æ) | | | 165,389 | | | | 2,390 | |
Microchip Technology, Inc. | | | 47,100 | | | | 1,665 | |
MICROS Systems, Inc. (Æ) | | | 17,500 | | | | 995 | |
Microsoft Corp. (Û) | | | 1,577,111 | | | | 50,499 | |
MicroStrategy, Inc. Class A (Æ) | | | 12,130 | | | | 1,696 | |
MKS Instruments, Inc. | | | 12,200 | | | | 337 | |
Molex, Inc. | | | 11,200 | | | | 309 | |
Motorola Solutions, Inc. (Û) | | | 176,556 | | | | 9,010 | |
NCR Corp. (Æ) | | | 253,512 | | | | 5,958 | |
NetApp, Inc. (Æ)(Û) | | | 112,370 | | | | 4,363 | |
NetSuite, Inc. (Æ) | | | 27,700 | | | | 1,229 | |
NeuStar, Inc. Class A (Æ) | | | 19,900 | | | | 723 | |
| | |
| Russell U.S. Quantitative Equity Fund | | 23 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Novellus Systems, Inc. (Æ) | | | 61,623 | | | | 2,881 | |
Nuance Communications, Inc. (Æ) | | | 97,100 | | | | 2,373 | |
NVIDIA Corp. (Æ) | | | 10,100 | | | | 131 | |
OmniVision Technologies, Inc. (Æ) | | | 85,500 | | | | 1,575 | |
Oracle Corp. | | | 942,647 | | | | 27,704 | |
Polycom, Inc. (Æ) | | | 98,000 | | | | 1,300 | |
QLogic Corp. (Æ) | | | 7,800 | | | | 135 | |
QUALCOMM, Inc. | | | 46,700 | | | | 2,981 | |
Rackspace Hosting, Inc. (Æ) | | | 26,496 | | | | 1,539 | |
Red Hat, Inc. (Æ) | | | 123,820 | | | | 7,381 | |
Research In Motion, Ltd. (Æ) | | | 91,700 | | | | 1,311 | |
Riverbed Technology, Inc. (Æ) | | | 5,100 | | | | 101 | |
SAIC, Inc. | | | 620,762 | | | | 7,548 | |
Salesforce.com, Inc. (Æ) | | | 1,500 | | | | 234 | |
SanDisk Corp. (Æ) | | | 24,100 | | | | 892 | |
SBA Communications Corp. Class A (Æ) | | | 4,000 | | | | 215 | |
Seagate Technology PLC | | | 77,100 | | | | 2,372 | |
Silicon Laboratories, Inc. (Æ) | | | 7,400 | | | | 263 | |
Symantec Corp. (Æ)(Û) | | | 565,800 | | | | 9,347 | |
Synopsys, Inc. (Æ) | | | 298,133 | | | | 8,947 | |
Tech Data Corp. (Æ) | | | 9,300 | | | | 500 | |
Tellabs, Inc. | | | 572,862 | | | | 2,160 | |
Teradata Corp. (Æ) | | | 25,300 | | | | 1,765 | |
Teradyne, Inc. (Æ) | | | 47,600 | | | | 819 | |
Tessera Technologies, Inc. | | | 50,570 | | | | 791 | |
Texas Instruments, Inc. | | | 35,900 | | | | 1,147 | |
TIBCO Software, Inc. (Æ) | | | 25,200 | | | | 829 | |
VMware, Inc. Class A (Æ)(Û) | | | 79,078 | | | | 8,835 | |
Western Digital Corp. (Æ)(Û) | | | 413,057 | | | | 16,031 | |
Xilinx, Inc. | | | 39,300 | | | | 1,430 | |
Zynga, Inc. Class A (Æ) | | | 79,957 | | | | 667 | |
| | | | | | | | |
| | | | | | | 572,822 | |
| | | | | | | | |
| | |
| Utilities - 8.5% | | | | | | | | |
AES Corp. (The) (Æ) | | | 760,300 | | | | 9,519 | |
AGL Resources, Inc. | | | 45,300 | | | | 1,786 | |
Alliant Energy Corp. | | | 3,300 | | | | 149 | |
Ameren Corp. | | | 459,609 | | | | 15,071 | |
American Electric Power Co., Inc. | | | 126,200 | | | | 4,902 | |
American Water Works Co., Inc. | | | 38,612 | | | | 1,322 | |
AT&T, Inc. (Û) | | | 1,170,900 | | | | 38,534 | |
Calpine Corp. (Æ) | | | 102,387 | | | | 1,920 | |
CenterPoint Energy, Inc. | | | 59,600 | | | | 1,204 | |
CenturyLink, Inc. | | | 68,170 | | | | 2,629 | |
CMS Energy Corp. | | | 49,700 | | | | 1,143 | |
Consolidated Edison, Inc. | | | 20,100 | | | | 1,195 | |
Dominion Resources, Inc. | | | 71,300 | | | | 3,721 | |
DTE Energy Co. | | | 113,700 | | | | 6,410 | |
Duke Energy Corp. | | | 25,000 | | | | 536 | |
Edison International (Û) | | | 321,959 | | | | 14,169 | |
El Paso LLC | | | 407,707 | | | | 12,097 | |
Energen Corp. | | | 17,900 | | | | 938 | |
Entergy Corp. (Û) | | | 80,400 | | | | 5,271 | |
Exelon Corp. | | | 78,474 | | | | 3,061 | |
FirstEnergy Corp. (Û) | | | 341,693 | | | | 15,998 | |
Frontier Communications Corp. | | | 1,100,800 | | | | 4,447 | |
GenOn Energy, Inc. (Æ) | | | 216,900 | | | | 462 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Great Plains Energy, Inc. | | | 6,500 | | | | 133 | |
ITC Holdings Corp. | | | 6,200 | | | | 480 | |
MetroPCS Communications, Inc. (Æ) | | | 338,075 | | | | 2,468 | |
National Fuel Gas Co. | | | 8,202 | | | | 388 | |
New Jersey Resources Corp. | | | 5,100 | | | | 220 | |
Nexen, Inc. | | | 98,600 | | | | 1,908 | |
NextEra Energy, Inc. | | | 55,400 | | | | 3,565 | |
NII Holdings, Inc. (Æ) | | | 119,770 | | | | 1,676 | |
NiSource, Inc. | | | 275,686 | | | | 6,796 | |
Northeast Utilities | | | 11,765 | | | | 433 | |
NRG Energy, Inc. (Æ) | | | 44,900 | | | | 763 | |
NV Energy, Inc. | | | 416,157 | | | | 6,929 | |
OGE Energy Corp. | | | 5,300 | | | | 286 | |
ONEOK, Inc. | | | 32,000 | | | | 2,748 | |
Pepco Holdings, Inc. | | | 8,700 | | | | 165 | |
PG&E Corp. | | | 230,757 | | | | 10,195 | |
Pinnacle West Capital Corp. | | | 150,255 | | | | 7,265 | |
PPL Corp. (Û) | | | 235,100 | | | | 6,430 | |
Progress Energy, Inc. Class D | | | 94,520 | | | | 5,030 | |
Public Service Enterprise Group, Inc. (Û) | | | 207,500 | | | | 6,464 | |
Questar Corp. | | | 116,929 | | | | 2,309 | |
SCANA Corp. | | | 19,100 | | | | 881 | |
Sempra Energy | | | 13,100 | | | | 848 | |
Southern Co. | | | 30,700 | | | | 1,410 | |
Sprint Nextel Corp. (Æ) | | | 1,672,600 | | | | 4,148 | |
Telephone & Data Systems, Inc. | | | 107,068 | | | | 2,601 | |
Time Warner Telecom, Inc. Class A (Æ) | | | 8,000 | | | | 174 | |
US Cellular Corp. (Æ) | | | 2,900 | | | | 114 | |
Vectren Corp. | | | 17,900 | | | | 527 | |
Verizon Communications, Inc. (Û) | | | 701,946 | | | | 28,345 | |
Westar Energy, Inc. | | | 6,100 | | | | 175 | |
Wisconsin Energy Corp. | | | 26,400 | | | | 973 | |
Xcel Energy, Inc. | | | 52,600 | | | | 1,423 | |
| | | | | | | | |
| | | | | | | 254,754 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $2,700,060) | | | | | | | 3,181,207 | |
| | | | | | | | |
|
| Short-Term Investments - 2.2% | |
Russell U.S. Cash Management Fund | | | 65,236,604 | | | | 65,236 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $65,236) | | | | 65,236 | |
| | | | | | | | |
| |
Total Investments - 108.4%
(identified cost $2,765,296) | | | | 3,246,443 | |
| | | | | | | | |
|
| Securities Sold Short - (8.5)% | |
| Consumer Discretionary - (1.7)% | |
Amazon.com, Inc. (Æ) | | | (9,000 | ) | | | (2,087 | ) |
BorgWarner, Inc. (Æ) | | | (43,600 | ) | | | (3,446 | ) |
Cabela’s, Inc. (Æ) | | | (60,800 | ) | | | (2,299 | ) |
CarMax, Inc. (Æ) | | | (255,600 | ) | | | (7,890 | ) |
DreamWorks Animation SKG, Inc. Class A (Æ) | | | (184,000 | ) | | | (3,314 | ) |
eBay, Inc. (Æ) | | | (78,300 | ) | | | (3,214 | ) |
Gaylord Entertainment Co. (Æ) | | | (58,300 | ) | | | (1,835 | ) |
Gentex Corp. | | | (130,892 | ) | | | (2,876 | ) |
| | | | |
| | 24 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Hyatt Hotels Corp. Class A (Æ) | | | (86,600 | ) | | | (3,726 | ) |
Iconix Brand Group, Inc. (Æ) | | | (23,700 | ) | | | (364 | ) |
Lennar Corp. Class A | | | (100,800 | ) | | | (2,796 | ) |
Life Time Fitness, Inc. (Æ) | | | (8,600 | ) | | | (400 | ) |
Liz Claiborne, Inc. (Æ) | | | (87,400 | ) | | | (1,171 | ) |
MGM Resorts International (Æ) | | | (127,800 | ) | | | (1,715 | ) |
Netflix, Inc. (Æ) | | | (17,900 | ) | | | (1,435 | ) |
PulteGroup, Inc. (Æ) | | | (38,800 | ) | | | (382 | ) |
Shutterfly, Inc. (Æ) | | | (63,093 | ) | | | (1,964 | ) |
Tiffany & Co. | | | (25,200 | ) | | | (1,725 | ) |
Toll Brothers, Inc. (Æ) | | | (192,300 | ) | | | (4,885 | ) |
WABCO Holdings, Inc. (Æ) | | | (51,900 | ) | | | (3,271 | ) |
| | | | | | | | |
| | | | | | | (50,795 | ) |
| | | | | | | | |
|
| Consumer Staples - (0.1)% | |
Boston Beer Co., Inc. Class A (Æ) | | | (11,080 | ) | | | (1,145 | ) |
Pilgrim’s Pride Corp. (Æ) | | | (23,960 | ) | | | (171 | ) |
Snyders-Lance, Inc. | | | (113,837 | ) | | | (2,946 | ) |
| | | | | | | | |
| | | | | | | (4,262 | ) |
| | | | | | | | |
| | |
| Energy - (1.1)% | | | | | | | | |
Clayton Williams Energy, Inc. (Æ) | | | (9,500 | ) | | | (699 | ) |
Cobalt International Energy, Inc. (Æ) | | | (136,133 | ) | | | (3,643 | ) |
Dril-Quip, Inc. (Æ) | | | (9,100 | ) | | | (613 | ) |
Forest Oil Corp. (Æ) | | | (253,554 | ) | | | (3,377 | ) |
Golar LNG, Ltd. | | | (46,300 | ) | | | (1,712 | ) |
McMoRan Exploration Co. (Æ) | | | (107,600 | ) | | | (947 | ) |
Quicksilver Resources, Inc. (Æ) | | | (429,131 | ) | | | (2,017 | ) |
Range Resources Corp. | | | (41,400 | ) | | | (2,760 | ) |
SandRidge Energy, Inc. (Æ) | | | (623,400 | ) | | | (4,981 | ) |
Southwestern Energy Co. (Æ) | | | (57,800 | ) | | | (1,825 | ) |
Spectra Energy Corp. | | | (139,500 | ) | | | (4,288 | ) |
Ultra Petroleum Corp. (Æ) | | | (190,900 | ) | | | (3,772 | ) |
World Fuel Services Corp. | | | (31,700 | ) | | | (1,397 | ) |
| | | | | | | | |
| | | | | | | (32,031 | ) |
| | | | | | | | |
|
| Financial Services - (0.9)% | |
Annaly Capital Management, Inc. (ö) | | | (198,000 | ) | | | (3,231 | ) |
Anworth Mortgage Asset Corp. (ö) | | | (173,250 | ) | | | (1,168 | ) |
Ares Capital Corp. | | | (10,100 | ) | | | (162 | ) |
Cash America International, Inc. | | | (13,000 | ) | | | (608 | ) |
CoreLogic, Inc. (Æ) | | | (200,107 | ) | | | (3,342 | ) |
Eaton Vance Corp. | | | (47,706 | ) | | | (1,255 | ) |
Erie Indemnity Co. Class A | | | (10,221 | ) | | | (786 | ) |
Financial Engines, Inc. (Æ) | | | (38,000 | ) | | | (868 | ) |
First Cash Financial Services, Inc. (Æ) | | | (34,991 | ) | | | (1,433 | ) |
Howard Hughes Corp. (The) (Æ) | | | (49,141 | ) | | | (3,298 | ) |
New York Community Bancorp, Inc. | | | (356,500 | ) | | | (4,809 | ) |
Plum Creek Timber Co., Inc. (ö) | | | (120,700 | ) | | | (5,074 | ) |
| | | | | | | | |
| | | | | | | (26,034 | ) |
| | | | | | | | |
| | |
| Health Care - (1.3)% | | | | | | | | |
Air Methods Corp. (Æ) | | | (15,200 | ) | | | (1,279 | ) |
Akorn, Inc. (Æ) | | | (126,600 | ) | | | (1,536 | ) |
Brookdale Senior Living, Inc. Class A (Æ) | | | (121,677 | ) | | | (2,313 | ) |
Cerner Corp. (Æ) | | | (67,300 | ) | | | (5,457 | ) |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Dentsply International, Inc. | | | (128,300 | ) | | | (5,268 | ) |
Halozyme Therapeutics, Inc. (Æ) | | | (215,317 | ) | | | (1,742 | ) |
HealthSouth Corp. (Æ) | | | (82,100 | ) | | | (1,838 | ) |
Insulet Corp. (Æ) | | | (42,200 | ) | | | (754 | ) |
MEDNAX, Inc. (Æ) | | | (25,300 | ) | | | (1,777 | ) |
MWI Veterinary Supply, Inc. (Æ) | | | (33,212 | ) | | | (3,135 | ) |
Neogen Corp. (Æ) | | | (69,200 | ) | | | (2,698 | ) |
NxStage Medical, Inc. (Æ) | | | (43,300 | ) | | | (736 | ) |
PDL BioPharma, Inc. | | | (202,930 | ) | | | (1,277 | ) |
Perrigo Co. | | | (17,600 | ) | | | (1,846 | ) |
Select Medical Holdings Corp. (Æ) | | | (179,946 | ) | | | (1,542 | ) |
STERIS Corp. | | | (28,025 | ) | | | (880 | ) |
VCA Antech, Inc. (Æ) | | | (136,700 | ) | | | (3,234 | ) |
Vertex Pharmaceuticals, Inc. (Æ) | | | (55,100 | ) | | | (2,120 | ) |
| | | | | | | | |
| | | | | | | (39,432 | ) |
| | | | | �� | | | |
| |
| Materials and Processing - (0.9)% | | | | | |
AMCOL International Corp. | | | (53,900 | ) | | | (1,777 | ) |
Calgon Carbon Corp. (Æ) | | | (57,557 | ) | | | (797 | ) |
Ecolab, Inc. | | | (110,700 | ) | | | (7,051 | ) |
Globe Specialty Metals, Inc. | | | (151,300 | ) | | | (2,018 | ) |
Hecla Mining Co. | | | (132,600 | ) | | | (568 | ) |
International Flavors & Fragrances, Inc. | | | (48,100 | ) | | | (2,896 | ) |
Louisiana-Pacific Corp. (Æ) | | | (140,500 | ) | | | (1,272 | ) |
Martin Marietta Materials, Inc. | | | (23,400 | ) | | | (1,939 | ) |
Sigma-Aldrich Corp. | | | (67,500 | ) | | | (4,786 | ) |
Stillwater Mining Co. (Æ) | | | (100,228 | ) | | | (1,075 | ) |
Texas Industries, Inc. | | | (27,000 | ) | | | (907 | ) |
Titanium Metals Corp. | | | (52,500 | ) | | | (775 | ) |
| | | | | | | | |
| | | | | | | (25,861 | ) |
| | | | | | | | |
|
| Producer Durables - (0.6)% | |
Convergys Corp. | | | (106,000 | ) | | | (1,417 | ) |
FARO Technologies, Inc. (Æ) | | | (27,500 | ) | | | (1,539 | ) |
Geo Group, Inc. (The) (Æ) | | | (31,226 | ) | | | (647 | ) |
Healthcare Services Group, Inc. | | | (14,118 | ) | | | (300 | ) |
IHS, Inc. Class A (Æ) | | | (45,900 | ) | | | (4,639 | ) |
Mobile Mini, Inc. (Æ) | | | (24,400 | ) | | | (460 | ) |
National Instruments Corp. | | | (103,900 | ) | | | (2,826 | ) |
Stericycle, Inc. (Æ) | | | (41,500 | ) | | | (3,594 | ) |
Waste Connections, Inc. | | | (71,400 | ) | | | (2,301 | ) |
Waste Management, Inc. | | | (43,700 | ) | | | (1,495 | ) |
| | | | | | | | |
| | | | | | | (19,218 | ) |
| | | | | | | | |
| | |
| Technology - (1.8)% | | | | | | | | |
Bottomline Technologies, Inc. (Æ) | | | (43,300 | ) | | | (1,019 | ) |
Cavium, Inc. (Æ) | | | (14,000 | ) | | | (410 | ) |
Cognex Corp. | | | (4,077 | ) | | | (164 | ) |
Compuware Corp. (Æ) | | | (57,900 | ) | | | (505 | ) |
Cymer, Inc. (Æ) | | | (11,000 | ) | | | (570 | ) |
DealerTrack Holdings, Inc. (Æ) | | | (54,026 | ) | | | (1,612 | ) |
Diodes, Inc. (Æ) | | | (81,300 | ) | | | (1,812 | ) |
Electronic Arts, Inc. (Æ) | | | (268,200 | ) | | | (4,125 | ) |
Equinix, Inc. (Æ) | | | (13,500 | ) | | | (2,217 | ) |
Fortinet, Inc. (Æ) | | | (91,700 | ) | | | (2,395 | ) |
Hittite Microwave Corp. (Æ) | | | (55,816 | ) | | | (2,988 | ) |
| | |
| Russell U.S. Quantitative Equity Fund | | 25 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
II-VI, Inc. (Æ) | | | (110,870 | ) | | | (2,263 | ) |
Informatica Corp. (Æ) | | | (55,700 | ) | | | (2,563 | ) |
InterDigital, Inc. | | | (49,234 | ) | | | (1,365 | ) |
IPG Photonics Corp. (Æ) | | | (23,508 | ) | | | (1,138 | ) |
Microchip Technology, Inc. | | | (132,200 | ) | | | (4,672 | ) |
NetSuite, Inc. (Æ) | | | (89,600 | ) | | | (3,976 | ) |
Power Integrations, Inc. | | | (32,100 | ) | | | (1,216 | ) |
Rackspace Hosting, Inc. (Æ) | | | (48,700 | ) | | | (2,829 | ) |
Salesforce.com, Inc. (Æ) | | | (30,100 | ) | | | (4,687 | ) |
ScanSource, Inc. (Æ) | | | (76,532 | ) | | | (2,522 | ) |
SS&C Technologies Holdings, Inc. (Æ) | | | (41,385 | ) | | | (984 | ) |
Synchronoss Technologies, Inc. (Æ) | | | (46,000 | ) | | | (1,440 | ) |
Texas Instruments, Inc. | | | (91,600 | ) | | | (2,926 | ) |
VeriFone Systems, Inc. (Æ) | | | (38,500 | ) | | | (1,834 | ) |
| | | | | | | | |
| | | | | | | (52,232 | ) |
| | | | | | | | |
| | |
| Utilities - (0.1)% | | | | | | | | |
j2 Global, Inc. | | | (14,900 | ) | | | (385 | ) |
TransCanada Corp. | | | (75,200 | ) | | | (3,307 | ) |
| | | | | | | | |
| | | | | | | (3,692 | ) |
| | | | | | | | |
| | |
Total Securities Sold Short
(proceeds $239,397) | | | | | | | (253,557 | ) |
| | | | | | | | |
| | |
Other Assets and Liabilities,
Net - 0.1% | | | | | | | 2,509 | |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 2,995,395 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 26 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
| Long Positions | | | | | | | | | | | | | | | | | | | | |
Russell 1000 Mini Index Futures (CME) | | | 102 | | | | USD | | | | 7,867 | | | | 06/12 | | | | 55 | |
S&P 500 E-Mini Index Futures (CME) | | | 774 | | | | USD | | | | 53,933 | | | | 06/12 | | | | 290 | |
S&P 500 Index Futures (CME) | | | 13 | | | | USD | | | | 4,529 | | | | 06/12 | | | | 87 | |
S&P Midcap 400 E-Mini Index Futures (CME) | | | 56 | | | | USD | | | | 5,542 | | | | 06/12 | | | | 58 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | 490 | |
| | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 491,823 | | | $ | — | | | $ | — | | | $ | 491,823 | | | | 16.4 | |
Consumer Staples | | | 287,289 | | | | — | | | | — | | | | 287,289 | | | | 9.6 | |
Energy | | | 352,096 | | | | — | | | | — | | | | 352,096 | | | | 11.8 | |
Financial Services | | | 407,009 | | | | — | | | | — | | | | 407,009 | | | | 13.6 | |
Health Care | | | 323,082 | | | | — | | | | — | | | | 323,082 | | | | 10.8 | |
Materials and Processing | | | 158,662 | | | | — | | | | — | | | | 158,662 | | | | 5.3 | |
Producer Durables | | | 333,670 | | | | — | | | | — | | | | 333,670 | | | | 11.1 | |
Technology | | | 572,822 | | | | — | | | | — | | | | 572,822 | | | | 19.1 | |
Utilities | | | 254,754 | | | | — | | | | — | | | | 254,754 | | | | 8.5 | |
Short-Term Investments | | | — | | | | 65,236 | | | | — | | | | 65,236 | | | | 2.2 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 3,181,207 | | | | 65,236 | | | | — | | | | 3,246,443 | | | | 108.4 | |
| | | | | | | | | | | | | | | | | | | | |
Securities Sold Short** | | | (253,557 | ) | | | — | | | | — | | | | (253,557 | ) | | | (8.5 | ) |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 490 | | | | — | | | | — | | | | 490 | | | | — | * |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments*** | | $ | 490 | | | $ | — | | | $ | — | | | $ | 490 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Refer to Schedule of Investments for detailed sector breakout. |
| *** | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Quantitative Equity Fund | | 27 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 490 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 11,926 | |
| | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (2,620 | ) |
| | | | |
| * | 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 and 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.
| | | | |
| | 28 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 2,765,296 | |
Investments, at market* | | | 3,246,443 | |
Cash (restricted) | | | 5,000 | |
Receivables: | | | | |
Dividends and interest | | | 2,960 | |
Dividends from affiliated Russell money market funds | | | 7 | |
Investments sold | | | 26,832 | |
Fund shares sold | | | 3,876 | |
Prepaid expenses | | | 875 | |
| | | | |
Total assets | | | 3,285,993 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 29,287 | |
Fund shares redeemed | | | 5,263 | |
Accrued fees to affiliates | | | 1,796 | |
Other accrued expenses | | | 379 | |
Daily variation margin on futures contracts | | | 281 | |
Dividends for securities sold short | | | 35 | |
Securities sold short, at market value** | | | 253,557 | |
| | | | |
Total liabilities | | | 290,598 | |
| | | | |
| | | | |
Net Assets | | $ | 2,995,395 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Quantitative Equity Fund | | 29 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 1,372 | |
Accumulated net realized gain (loss) | | | (824,465 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 481,147 | |
Futures contracts | | | 490 | |
Securities sold short | | | (14,160 | ) |
Shares of beneficial interest | | | 900 | |
Additional paid-in capital | | | 3,350,111 | |
| | | | |
Net Assets | | $ | 2,995,395 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 33.27 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 35.30 | |
Class A — Net assets | | $ | 19,550,782 | |
Class A — Shares outstanding ($.01 par value) | | | 587,576 | |
Net asset value per share: Class C(a) | | $ | 33.12 | |
Class C — Net assets | | $ | 46,665,702 | |
Class C — Shares outstanding ($.01 par value) | | | 1,408,918 | |
Net asset value per share: Class E(a) | | $ | 33.25 | |
Class E — Net assets | | $ | 56,131,496 | |
Class E — Shares outstanding ($.01 par value) | | | 1,688,334 | |
Net asset value per share: Class I(a) | | $ | 33.28 | |
Class I — Net assets | | $ | 372,872,504 | |
Class I — Shares outstanding ($.01 par value) | | | 11,204,077 | |
Net asset value per share: Class S(a) | | $ | 33.30 | |
Class S — Net assets | | $ | 1,350,220,598 | |
Class S — Shares outstanding ($.01 par value) | | | 40,547,490 | |
Net asset value per share: Class Y(a) | | $ | 33.29 | |
Class Y — Net assets | | $ | 1,149,953,438 | |
Class Y — Shares outstanding ($.01 par value) | | | 34,547,294 | |
Amounts in thousands | | | | |
| | | | |
* Investments in affiliates, Russell U.S. Cash Management Fund | | $ | 65,236 | |
** Proceeds on securities sold short | | $ | 239,397 | |
(a) 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.
| | | | |
| | 30 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 30,973 | |
Dividends from affiliated Russell money market funds | | | 38 | |
| | | | |
Total investment income | | | 31,011 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 7,933 | |
Administrative fees | | | 716 | |
Custodian fees | | | 260 | |
Distribution fees - Class A | | | 23 | |
Distribution fees - Class C | | | 178 | |
Transfer agent fees - Class A | | | 17 | |
Transfer agent fees - Class C | | | 43 | |
Transfer agent fees - Class E | | | 49 | |
Transfer agent fees - Class I | | | 183 | |
Transfer agent fees - Class S | | | 1,137 | |
Transfer agent fees - Class Y | | | 25 | |
Professional fees | | | 71 | |
Registration fees | | | 93 | |
Shareholder servicing fees - Class C | | | 59 | |
Shareholder servicing fees - Class E | | | 69 | |
Trustees’ fees | | | 29 | |
Printing fees | | | 34 | |
Dividends from securities sold short | | | 2,198 | |
Interest expense paid on securities sold short | | | 614 | |
Miscellaneous | | | 39 | |
| | | | |
Expenses before reductions | | | 13,770 | |
Expense reductions | | | (16 | ) |
| | | | |
Net expenses | | | 13,754 | |
| | | | |
Net investment income (loss) | | | 17,257 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 142,363 | |
Futures contracts | | | 11,926 | |
Securities sold short | | | (16,019 | ) |
Foreign currency-related transactions | | | (1 | ) |
| | | | |
Net realized gain (loss) | | | 138,269 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 225,095 | |
Futures contracts | | | (2,620 | ) |
Securities sold short | | | (17,347 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 205,128 | |
| | | | |
Net realized and unrealized gain (loss) | | | 343,397 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 360,654 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Quantitative Equity Fund | | 31 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 17,257 | | | $ | 32,373 | |
Net realized gain (loss) | | | 138,269 | | | | 339,789 | |
Net change in unrealized appreciation (depreciation) | | | 205,128 | | | | (60,257 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 360,654 | | | | 311,905 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (80 | ) | | | (144 | ) |
Class C | | | (59 | ) | | | (111 | ) |
Class E | | | (245 | ) | | | (518 | ) |
Class I | | | (2,154 | ) | | | (4,672 | ) |
Class S | | | (6,970 | ) | | | (11,913 | ) |
Class Y | | | (7,170 | ) | | | (14,936 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (16,678 | ) | | | (32,294 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (200,237 | ) | | | (324,406 | ) |
Fund Reimbursements | | | — | | | | 33 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 143,739 | | | | (44,762 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 2,851,656 | | | | 2,896,418 | |
| | | | | | | | |
End of period | | $ | 2,995,395 | | | $ | 2,851,656 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 1,372 | | | $ | 793 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 32 | | | Russell U.S. Quantitative Equity Fund |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Statement of Cash Flows* — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Increase (decrease) in Cash | | | | |
| |
Cash flows from operating activities | | | | |
Net increase in net assets from operations | | $ | 360,654 | |
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities | | | | |
Purchase of investment securities | | | (1,757,971 | ) |
Proceeds from disposition of investment securities | | | 1,956,905 | |
Sale of short-term investment securities, net | | | (10,128 | ) |
Increase in cash collateral for futures contracts | | | 2,500 | |
Decrease in receivables for dividends and interest | | | 99 | |
Decrease in receivables for investments sold | | | 9,527 | |
Increase in prepaid expenses | | | (593 | ) |
Increase in payables for fund shares redeemed | | | 438 | |
Increase in payables for accrued fees to affiliates | | | 90 | |
Decrease in payables for other accrued expenses | | | (57 | ) |
Decrease in payables for dividends from securities sold short | | | (13 | ) |
Decrease in payables for daily variation margin on futures contracts | | | (1,303 | ) |
Change in unrealized appreciation on securities on investments | | | (207,748 | ) |
Net realized loss on investments | | | (126,343 | ) |
| | | | |
Net cash provided by operating activities | | | 226,057 | |
| | | | |
| |
Cash flows from financing activities | | | | |
Proceeds from shares sold | | | 205,995 | |
Payments for shares redeemed | | | (431,771 | ) |
Cash distributions paid | | | (281 | ) |
| | | | |
Net cash used in financing activities | | | (226,057 | ) |
| | | | |
Net increase in cash | | | — | |
| |
Cash | | | | |
Beginning balance | | | — | |
| | | | |
Ending balance | | $ | — | |
| | | | |
Noncash financing activities not included herein consist of reinvestments of distributions of $16,696.
| * | 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.
| | |
| Russell U.S. Quantitative Equity Fund | | 33 |
Russell Investment Company
Russell U.S. Quantitative Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 29.57 | | | | .14 | | | | 3.69 | | | | 3.83 | | | | (.13 | ) | | | — | |
October 31, 2011 | | | 26.98 | | | | .23 | | | | 2.59 | | | | 2.82 | | | | (.23 | ) | | | — | |
October 31, 2010 | | | 23.94 | | | | .23 | | | | 3.07 | | | | 3.30 | | | | (.26 | ) | | | — | |
October 31, 2009 | | | 22.26 | | | | .25 | | | | 1.68 | | | | 1.93 | | | | (.25 | ) | | | — | |
October 31, 2008(3) | | | 30.15 | | | | .01 | | | | (7.88 | ) | | | (7.87 | ) | | | (.02 | ) | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 29.45 | | | | .02 | | | | 3.69 | | | | 3.71 | | | | (.04 | ) | | | — | |
October 31, 2011 | | | 26.91 | | | | .01 | | | | 2.58 | | | | 2.59 | | | | (.05 | ) | | | — | |
October 31, 2010 | | | 23.89 | | | | .04 | | | | 3.06 | | | | 3.10 | | | | (.08 | ) | | | — | |
October 31, 2009 | | | 22.23 | | | | .10 | | | | 1.64 | | | | 1.74 | | | | (.08 | ) | | | — | |
October 31, 2008(3) | | | 30.15 | | | | (.02 | ) | | | (7.89 | ) | | | (7.91 | ) | | | (.01 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 29.54 | | | | .15 | | | | 3.70 | | | | 3.85 | | | | (.14 | ) | | | — | |
October 31, 2011 | | | 26.96 | | | | .26 | | | | 2.57 | | | | 2.83 | | | | (.25 | ) | | | — | |
October 31, 2010 | | | 23.92 | | | | .26 | | | | 3.07 | | | | 3.33 | | | | (.29 | ) | | | — | |
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 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 29.57 | | | | .19 | | | | 3.70 | | | | 3.89 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 26.98 | | | | .33 | | | | 2.58 | | | | 2.91 | | | | (.32 | ) | | | — | |
October 31, 2010 | | | 23.95 | | | | .32 | | | | 3.06 | | | | 3.38 | | | | (.35 | ) | | | — | |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 29.59 | | | | .18 | | | | 3.70 | | | | 3.88 | | | | (.17 | ) | | | — | |
October 31, 2011 | | | 27.00 | | | | .30 | | | | 2.59 | | | | 2.89 | | | | (.30 | ) | | | — | |
October 31, 2010 | | | 23.96 | | | | .30 | | | | 3.07 | | | | 3.37 | | | | (.33 | ) | | | — | |
October 31, 2009 | | | 22.30 | | | | .31 | | | | 1.65 | | | | 1.96 | | | | (.30 | ) | | | — | |
October 31, 2008(3) | | | 30.18 | | | | .02 | | | | (7.88 | ) | | | (7.86 | ) | | | (.02 | ) | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 29.58 | | | | .20 | | | | 3.71 | | | | 3.91 | | | | (.20 | ) | | | — | |
October 31, 2011 | | | 26.99 | | | | .36 | | | | 2.58 | | | | 2.94 | | | | (.35 | ) | | | — | |
October 31, 2010 | | | 23.96 | | | | .35 | | | | 3.05 | | | | 3.40 | | | | (.37 | ) | | | — | |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 34 | | | Russell U.S. Quantitative Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e)(g) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.13 | ) | | | 33.27 | | | | 13.00 | | | | 19,551 | | | | 1.26 | | | | 1.26 | | | | .89 | | | | 61 | |
| | (.23 | ) | | | 29.57 | | | | 10.47 | | | | 18,284 | | | | 1.26 | | | | 1.26 | | | | .77 | | | | 142 | |
| | (.26 | ) | | | 26.98 | | | | 13.87 | | | | 17,610 | | | | 1.26 | | | | 1.26 | | | | .88 | | | | 102 | |
| | (.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 | ) | | | 33.12 | | | | 12.60 | | | | 46,666 | | | | 2.01 | | | | 2.01 | | | | .15 | | | | 61 | |
| | (.05 | ) | | | 29.45 | | | | 9.63 | | | | 48,096 | | | | 2.01 | | | | 2.01 | | | | .04 | | | | 142 | |
| | (.08 | ) | | | 26.91 | | | | 12.98 | | | | 61,826 | | | | 2.01 | | | | 2.01 | | | | .14 | | | | 102 | |
| | (.08 | ) | | | 23.89 | | | | 7.91 | | | | 71,301 | | | | 2.06 | | | | 2.06 | | | | .49 | | | | 115 | |
| | (.01 | ) | | | 22.23 | | | | (26.23 | ) | | | 82,787 | | | | 2.01 | | | | 2.00 | | | | (.43 | ) | | | 118 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 33.25 | | | | 13.04 | | | | 56,131 | | | | 1.26 | | | | 1.20 | | | | .94 | | | | 61 | |
| | (.25 | ) | | | 29.54 | | | | 10.55 | | | | 51,877 | | | | 1.27 | | | | 1.19 | | | | .89 | | | | 142 | |
| | (.29 | ) | | | 26.96 | | | | 13.99 | | | | 67,618 | | | | 1.26 | | | | 1.15 | | | | 1.01 | | | | 102 | |
| | (.27 | ) | | | 23.92 | | | | 8.86 | | | | 79,008 | | | | 1.31 | | | | 1.18 | | | | 1.35 | | | | 115 | |
| | (3.98 | ) | | | 22.26 | | | | (38.26 | ) | | | 86,593 | | | | 1.20 | | | | 1.15 | | | | .94 | | | | 118 | |
| | (3.17 | ) | | | 40.29 | | | | 11.11 | | | | 61,842 | | | | 1.09 | | | | 1.07 | | | | .79 | | | | 121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 33.28 | | | | 13.21 | | | | 372,873 | | | | .93 | | | | .93 | | | | 1.23 | | | | 61 | |
| | (.32 | ) | | | 29.57 | | | | 10.83 | | | | 374,489 | | | | .93 | | | | .93 | | | | 1.13 | | | | 142 | |
| | (.35 | ) | | | 26.98 | | | | 14.22 | | | | 476,481 | | | | .93 | | | | .91 | | | | 1.26 | | | | 102 | |
| | (.32 | ) | | | 23.95 | | | | 9.12 | | | | 736,767 | | | | .98 | | | | .93 | | | | 1.62 | | | | 115 | |
| | (4.04 | ) | | | 22.29 | | | | (38.11 | ) | | | 815,038 | | | | .96 | | | | .93 | | | | 1.22 | | | | 118 | |
| | (3.27 | ) | | | 40.30 | | | | 11.40 | | | | 1,369,379 | | | | .84 | | | | .82 | | | | 1.04 | | | | 121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 33.30 | | | | 13.16 | | | | 1,350,221 | | | | 1.01 | | | | 1.01 | | | | 1.13 | | | | 61 | |
| | (.30 | ) | | | 29.59 | | | | 10.74 | | | | 1,209,861 | | | | 1.01 | | | | 1.01 | | | | 1.02 | | | | 142 | |
| | (.33 | ) | | | 27.00 | | | | 14.14 | | | | 1,029,950 | | | | 1.01 | | | | 1.01 | | | | 1.15 | | | | 102 | |
| | (.30 | ) | | | 23.96 | | | | 8.98 | | | | 1,356,163 | | | | 1.06 | | | | 1.06 | | | | 1.46 | | | | 115 | |
| | (.02 | ) | | | 22.30 | | | | (26.05 | ) | | | 1,245,509 | | | | 1.02 | | | | 1.00 | | | | .36 | | | | 118 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 33.29 | | | | 13.26 | | | | 1,149,953 | | | | .83 | | | | .83 | | | | 1.32 | | | | 61 | |
| | (.35 | ) | | | 29.58 | | | | 10.94 | | | | 1,149,049 | | | | .83 | | | | .83 | | | | 1.21 | | | | 142 | |
| | (.37 | ) | | | 26.99 | | | | 14.30 | | | | 1,242,933 | | | | .83 | | | | .83 | | | | 1.35 | | | | 102 | |
| | (.33 | ) | | | 23.96 | | | | 9.21 | | | | 1,975,524 | | | | .88 | | | | .88 | | | | 1.63 | | | | 115 | |
| | (4.06 | ) | | | 22.29 | | | | (38.07 | ) | | | 1,882,415 | | | | .86 | | | | .85 | | | | 1.27 | | | | 118 | |
| | (3.28 | ) | | | 40.30 | | | | 11.44 | | | | 371,457 | | | | .79 | | | | .77 | | | | 1.09 | | | | 121 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Quantitative Equity Fund | | 35 |
Russell Investment Company
Russell U.S. Growth Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,136.60 | | | $ | 1,014.67 | |
Expenses Paid During Period* | | $ | 10.89 | | | $ | 10.27 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,141.65 | | | $ | 1,018.40 | |
Expenses Paid During Period* | | $ | 6.92 | | | $ | 6.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,142.36 | | | $ | 1,020.29 | |
Expenses Paid During Period* | | $ | 4.90 | | | $ | 4.62 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,141.51 | | | $ | 1,019.64 | |
Expenses Paid During Period* | | $ | 5.59 | | | $ | 5.27 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 36 | | | Russell U.S. Growth Fund |
Russell Investment Company
Russell U.S. Growth Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 92.4% | | | | | | | | |
| Consumer Discretionary - 21.8% | | | | | |
Amazon.com, Inc. (Æ) | | | 3,970 | | | | 921 | |
Apollo Group, Inc. Class A (Æ) | | | 6,808 | | | | 240 | |
Bed Bath & Beyond, Inc. (Æ) | | | 3,149 | | | | 222 | |
BorgWarner, Inc. (Æ) | | | 1,700 | | | | 134 | |
CBS Corp. Class B | | | 13,307 | | | | 444 | |
Chipotle Mexican Grill, Inc. Class A (Æ) | | | 200 | | | | 83 | |
Coach, Inc. | | | 2,429 | | | | 178 | |
Diageo PLC - ADR | | | 4,754 | | | | 481 | |
Dick’s Sporting Goods, Inc. | | | 3,054 | | | | 154 | |
Dollar General Corp. (Æ) | | | 5,445 | | | | 258 | |
eBay, Inc. (Æ) | | | 29,034 | | | | 1,192 | |
Estee Lauder Cos., Inc. (The) Class A | | | 4,594 | | | | 300 | |
Ford Motor Co. | | | 20,400 | | | | 230 | |
Hanesbrands, Inc. (Æ) | | | 10,000 | | | | 282 | |
Hertz Global Holdings, Inc. (Æ) | | | 26,200 | | | | 404 | |
Home Depot, Inc. | | | 6,100 | | | | 316 | |
Johnson Controls, Inc. | | | 15,306 | | | | 489 | |
Las Vegas Sands Corp. | | | 11,300 | | | | 627 | |
Limited Brands, Inc. | | | 10,100 | | | | 502 | |
Lululemon Athletica, Inc. (Æ) | | | 1,400 | | | | 104 | |
McGraw-Hill Cos., Inc. (The) | | | 7,800 | | | | 383 | |
MGM Resorts International (Æ) | | | 10,600 | | | | 142 | |
Michael Kors Holdings, Ltd. (Æ) | | | 2,722 | | | | 124 | |
Nike, Inc. Class B | | | 2,600 | | | | 291 | |
priceline.com, Inc. (Æ) | | | 340 | | | | 259 | |
Ralph Lauren Corp. Class A | | | 1,100 | | | | 189 | |
Ross Stores, Inc. | | | 2,475 | | | | 152 | |
Snap-on, Inc. | | | 4,400 | | | | 275 | |
Stanley Black & Decker, Inc. | | | 4,600 | | | | 337 | |
Starbucks Corp. | | | 18,140 | | | | 1,041 | |
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö) | | | 9,470 | | | | 561 | |
Target Corp. | | | 6,500 | | | | 377 | |
Tiffany & Co. | | | 1,200 | | | | 82 | |
TJX Cos., Inc. | | | 4,225 | | | | 176 | |
Tractor Supply Co. | | | 800 | | | | 79 | |
Ulta Salon Cosmetics & Fragrance, Inc. | | | 900 | | | | 79 | |
Under Armour, Inc. Class A (Æ) | | | 3,870 | | | | 379 | |
VF Corp. | | | 2,249 | | | | 342 | |
Wal-Mart Stores, Inc. | | | 5,700 | | | | 336 | |
Walt Disney Co. (The) | | | 7,114 | | | | 307 | |
Warnaco Group, Inc. (The) (Æ) | | | 4,400 | | | | 233 | |
Yum! Brands, Inc. | | | 17,130 | | | | 1,246 | |
| | | | | | | | |
| | | | | | | 14,951 | |
| | | | | | | | |
| | |
| Consumer Staples - 5.4% | | | | | | | | |
British American Tobacco PLC - ADR | | | 2,941 | | | | 303 | |
Cia de Bebidas das Americas - ADR | | | 13,010 | | | | 546 | |
Coca-Cola Co. (The) | | | 13,950 | | | | 1,065 | |
Colgate-Palmolive Co. | | | 9,070 | | | | 897 | |
General Mills, Inc. | | | 7,138 | | | | 278 | |
Kraft Foods, Inc. Class A | | | 9,700 | | | | 387 | |
Whole Foods Market, Inc. | | | 2,400 | | | | 199 | |
| | | | | | | | |
| | | | | | | 3,675 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Energy - 8.6% | | | | | | | | |
Anadarko Petroleum Corp. | | | 6,749 | | | | 494 | |
Cabot Oil & Gas Corp. | | | 4,166 | | | | 146 | |
Chevron Corp. | | | 3,400 | | | | 362 | |
Cobalt International Energy, Inc. (Æ) | | | 17,046 | | | | 456 | |
Exxon Mobil Corp. | | | 11,822 | | | | 1,021 | |
FMC Technologies, Inc. (Æ) | | | 2,400 | | | | 113 | |
Forest Oil Corp. (Æ) | | | 23,200 | | | | 309 | |
Halliburton Co. | | | 5,300 | | | | 181 | |
Hess Corp. | | | 3,995 | | | | 208 | |
National Oilwell Varco, Inc. | | | 11,280 | | | | 855 | |
Noble Energy, Inc. | | | 1,400 | | | | 139 | |
Schlumberger, Ltd. | | | 15,386 | | | | 1,141 | |
Southwestern Energy Co. (Æ) | | | 3,000 | | | | 95 | |
Weatherford International, Ltd. (Æ) | | | 13,387 | | | | 191 | |
Whiting Petroleum Corp. (Æ) | | | 3,400 | | | | 195 | |
| | | | | | | | |
| | | | | | | 5,906 | |
| | | | | | | | |
| | |
| Financial Services - 7.5% | | | | | | | | |
Alert Care Corp. - ADR (Æ)(Ñ) | | | 18,900 | | | | 231 | |
American Express Co. | | | 11,500 | | | | 692 | |
Capital One Financial Corp. | | | 5,847 | | | | 324 | |
Discover Financial Services | | | 8,953 | | | | 304 | |
Goldman Sachs Group, Inc. (The) | | | 2,114 | | | | 244 | |
Hartford Financial Services Group, Inc. | | | 18,400 | | | | 378 | |
Lincoln National Corp. | | | 15,200 | | | | 377 | |
Mastercard, Inc. Class A | | | 1,000 | | | | 452 | |
State Street Corp. | | | 15,650 | | | | 723 | |
Visa, Inc. Class A | | | 9,947 | | | | 1,223 | |
Western Union Co. (The) | | | 11,854 | | | | 218 | |
| | | | | | | | |
| | | | | | | 5,166 | |
| | | | | | | | |
| | |
| Health Care - 9.0% | | | | | | | | |
Abbott Laboratories | | | 2,351 | | | | 146 | |
Alexion Pharmaceuticals, Inc. (Æ) | | | 1,769 | | | | 160 | |
Allergan, Inc. | | | 3,100 | | | | 298 | |
Biogen Idec, Inc. (Æ) | | | 1,000 | | | | 134 | |
Cerner Corp. (Æ) | | | 8,020 | | | | 650 | |
Dentsply International, Inc. | | | 9,610 | | | | 395 | |
Express Scripts Holding Co. (Æ) | | | 6,800 | | | | 379 | |
Gilead Sciences, Inc. (Æ) | | | 9,669 | | | | 503 | |
Illumina, Inc. (Æ) | | | 3,132 | | | | 139 | |
Intuitive Surgical, Inc. (Æ) | | | 900 | | | | 520 | |
Mylan, Inc. (Æ) | | | 26,310 | | | | 571 | |
Novo Nordisk A/S - ADR | | | 3,610 | | | | 531 | |
NuVasive, Inc. (Æ) | | | 10,246 | | | | 170 | |
Perrigo Co. | | | 4,960 | | | | 520 | |
Pfizer, Inc. | | | 32,000 | | | | 734 | |
Valeant Pharmaceuticals International, Inc. (Æ) | | | 2,500 | | | | 139 | |
WellPoint, Inc. | | | 2,638 | | | | 179 | |
| | | | | | | | |
| | | | | | | 6,168 | |
| | | | | | | | |
| |
| Materials and Processing - 5.4% | | | | | |
Air Products & Chemicals, Inc. | | | 4,000 | | | | 342 | |
Albemarle Corp. | | | 4,200 | | | | 274 | |
| | |
| Russell U.S. Growth Fund | | 37 |
Russell Investment Company
Russell U.S. Growth Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Ecolab, Inc. | | | 11,290 | | | | 719 | |
Freeport-McMoRan Copper & Gold, Inc. | | | 6,758 | | | | 259 | |
LyondellBasell Industries NV Class A | | | 3,100 | | | | 129 | |
Masco Corp. | | | 4,600 | | | | 61 | |
Monsanto Co. | | | 14,672 | | | | 1,118 | |
Mosaic Co. (The) | | | 6,588 | | | | 348 | |
Praxair, Inc. | | | 3,230 | | | | 374 | |
Sherwin-Williams Co. (The) | | | 600 | | | | 72 | |
| | | | | | | | |
| | | | | | | 3,696 | |
| | | | | | | | |
| |
| Producer Durables - 11.4% | | | | | |
Accenture PLC Class A | | | 10,000 | | | | 650 | |
Automatic Data Processing, Inc. | | | 11,810 | | | | 657 | |
Burberry Group PLC (Æ) | | | 5,702 | | | | 274 | |
Caterpillar, Inc. | | | 3,600 | | | | 370 | |
Cooper Industries PLC | | | 2,779 | | | | 174 | |
CSX Corp. | | | 14,151 | | | | 316 | |
Cummins, Inc. | | | 2,100 | | | | 243 | |
Danaher Corp. | | | 7,100 | | | | 385 | |
Danone - ADR | | | 32,910 | | | | 463 | |
Deere & Co. | | | 3,200 | | | | 264 | |
Delta Air Lines, Inc. (Æ) | | | 22,200 | | | | 243 | |
FedEx Corp. | | | 6,600 | | | | 582 | |
Fluor Corp. | | | 5,831 | | | | 337 | |
General Dynamics Corp. | | | 2,932 | | | | 198 | |
Honeywell International, Inc. | | | 6,300 | | | | 382 | |
Joy Global, Inc. | | | 9,424 | | | | 667 | |
Pentair, Inc. | | | 6,100 | | | | 264 | |
Rockwell Automation, Inc. | | | 6,737 | | | | 521 | |
Textron, Inc. | | | 4,861 | | | | 129 | |
Union Pacific Corp. | | | 1,600 | | | | 180 | |
United Continental Holdings, Inc. (Æ) | | | 9,000 | | | | 197 | |
Xylem, Inc. | | | 10,300 | | | | 287 | |
| | | | | | | | |
| | | | | | | 7,783 | |
| | | | | | | | |
| | |
| Technology - 23.3% | | | | | | | | |
Acme Packet, Inc. (Æ)(Ñ) | | | 11,554 | | | | 324 | |
Analog Devices, Inc. | | | 9,700 | | | | 378 | |
Apple, Inc. (Æ) | | | 7,140 | | | | 4,171 | |
Avago Technologies, Ltd. | | | 12,200 | | | | 421 | |
Baidu, Inc. - ADR (Æ) | | | 1,911 | | | | 254 | |
Citrix Systems, Inc. (Æ) | | | 8,696 | | | | 744 | |
Cognizant Technology Solutions Corp. Class A (Æ) | | | 2,933 | | | | 215 | |
EMC Corp. (Æ) | | | 17,033 | | | | 481 | |
F5 Networks, Inc. (Æ) | | | 2,900 | | | | 388 | |
Google, Inc. Class A (Æ) | | | 2,752 | | | | 1,666 | |
International Business Machines Corp. | | | 3,300 | | | | 683 | |
LSI Corp. (Æ) | | | 12,000 | | | | 97 | |
Maxim Integrated Products, Inc. | | | 11,500 | | | | 340 | |
Microsoft Corp. | | | 18,084 | | | | 579 | |
OpenTable, Inc. (Æ)(Ñ) | | | 6,801 | | | | 304 | |
QUALCOMM, Inc. | | | 31,385 | | | | 2,004 | |
Red Hat, Inc. (Æ) | | | 8,580 | | | | 511 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Salesforce.com, Inc. (Æ) | | | 3,964 | | | | 617 | |
SAP AG - ADR (Ñ) | | | 5,270 | | | | 349 | |
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR | | | 23,900 | | | | 372 | |
Teradata Corp. (Æ) | | | 2,300 | | | | 161 | |
Texas Instruments, Inc. | | | 17,492 | | | | 559 | |
VeriFone Systems, Inc. (Æ) | | | 3,000 | | | | 143 | |
VMware, Inc. Class A (Æ) | | | 1,600 | | | | 179 | |
| | | | | | | | |
| | | | | | | 15,940 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $48,479) | | | | | | | 63,285 | |
| | | | | | | | |
| |
| Short-Term Investments - 7.2% | | | | | |
Russell U.S. Cash Management Fund | | | 4,921,400 | (¥) | | | 4,921 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $4,921) | | | | 4,921 | |
| | | | | | | | |
| |
| Other Securities - 1.8% | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 178,589 | (¥) | | | 182 | |
Russell U.S. Cash Collateral Fund (×) | | | 1,056,769 | (¥) | | | 1,057 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $1,235) | | | | | | | 1,239 | |
| | | | | | | | |
| |
Total Investments - 101.4%
(identified cost $54,635) | | | | 69,445 | |
| |
Other Assets and Liabilities,
Net - (1.4%) | | | | (982 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 68,463 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 38 | | | Russell U.S. Growth Fund |
Russell Investment Company
Russell U.S. Growth Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
| Long Positions | | | | | | | | | | | | | | | | | | | | |
S&P 500 E-Mini Index Futures (CME) | | | 53 | | | | USD | | | | 3,693 | | | | 06/12 | | | | 44 | |
S&P 500 Industrial Sector Index Futures (CME) | | | 15 | | | | USD | | | | 553 | | | | 06/12 | | | | 20 | |
S&P E-Mini Consumer Staples Select Sector Index Futures (CME) | | | 17 | | | | USD | | | | 578 | | | | 06/12 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | |
| |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | 75 | |
| | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 14,951 | | | $ | — | | | $ | — | | | $ | 14,951 | | | | 21.8 | |
Consumer Staples | | | 3,675 | | | | — | | | | — | | | | 3,675 | | | | 5.4 | |
Energy | | | 5,906 | | | | — | | | | — | | | | 5,906 | | | | 8.6 | |
Financial Services | | | 5,166 | | | | — | | | | — | | | | 5,166 | | | | 7.5 | |
Health Care | | | 6,168 | | | | — | | | | — | | | | 6,168 | | | | 9.0 | |
Materials and Processing | | | 3,696 | | | | — | | | | — | | | | 3,696 | | | | 5.4 | |
Producer Durables | | | 7,783 | | | | — | | | | — | | | | 7,783 | | | | 11.4 | |
Technology | | | 15,940 | | | | — | | | | — | | | | 15,940 | | | | 23.3 | |
Short-Term Investments | | | — | | | | 4,921 | | | | — | | | | 4,921 | | | | 7.2 | |
Other Securities | | | — | | | | 1,239 | | | | — | | | | 1,239 | | | | 1.8 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 63,285 | | | | 6,160 | | | | — | | | | 69,445 | | | | 101.4 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (1.4 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 75 | | | | — | | | | — | | | | 75 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 75 | | | $ | — | | | $ | — | | | $ | 75 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Growth Fund | | 39 |
Russell Investment Company
Russell U.S. Growth Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 75 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 440 | |
| | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (52 | ) |
| | | | |
| * | 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 and 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.
| | | | |
| | 40 | | | Russell U.S. Growth Fund |
Russell Investment Company
Russell U.S. Growth Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 54,635 | |
Investments, at market*, ** | | | 69,445 | |
Cash (restricted) | | | 320 | |
Receivables: | | | | |
Dividends and interest | | | 52 | |
Dividends from affiliated Russell money market funds | | | 1 | |
Investments sold | | | 859 | |
Fund shares sold | | | 47 | |
From affiliates | | | 2 | |
| | | | |
Total assets | | | 70,726 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 886 | |
Fund shares redeemed | | | 6 | |
Accrued fees to affiliates | | | 44 | |
Other accrued expenses | | | 72 | |
Daily variation margin on futures contracts | | | 20 | |
Payable upon return of securities loaned | | | 1,235 | |
| | | | |
Total liabilities | | | 2,263 | |
| | | | |
| | | | |
Net Assets | | $ | 68,463 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Growth Fund | | 41 |
Russell Investment Company
Russell U.S. Growth Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 28 | |
Accumulated net realized gain (loss) | | | (17,968 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 14,810 | |
Futures contracts | | | 75 | |
Shares of beneficial interest | | | 71 | |
Additional paid-in capital | | | 71,447 | |
| | | | |
Net Assets | | $ | 68,463 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class C(a) | | $ | 8.57 | |
Class C — Net assets | | $ | 5,480,925 | |
Class C — Shares outstanding ($.01 par value) | | | 639,354 | |
Net asset value per share: Class E(a) | | $ | 9.43 | |
Class E — Net assets | | $ | 4,141,743 | |
Class E — Shares outstanding ($.01 par value) | | | 439,409 | |
Net asset value per share: Class I(a) | | $ | 9.79 | |
Class I — Net assets | | $ | 26,130,587 | |
Class I — Shares outstanding ($.01 par value) | | | 2,668,001 | |
Net asset value per share: Class S(a) | | $ | 9.68 | |
Class S — Net assets | | $ | 32,709,619 | |
Class S — Shares outstanding ($.01 par value) | | | 3,377,883 | |
Amounts in thousands | | | | |
| | | | |
* Securities on loan included in investments | | $ | 1,196 | |
** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust, and Russell U.S. Cash Collateral Fund | | $ | 6,160 | |
(a) 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 | | | Russell U.S. Growth Fund |
Russell Investment Company
Russell U.S. Growth Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 373 | |
Dividends from affiliated Russell money market funds | | | 3 | |
Securities lending income | | | 7 | |
| | | | |
Total investment income | | | 383 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 260 | |
Administrative fees | | | 16 | |
Custodian fees | | | 35 | |
Distribution fees - Class C | | | 20 | |
Transfer agent fees - Class C | | | 5 | |
Transfer agent fees - Class E | | | 3 | |
Transfer agent fees - Class I | | | 13 | |
Transfer agent fees - Class S | | | 27 | |
Professional fees | | | 22 | |
Registration fees | | | 32 | |
Shareholder servicing fees - Class C | | | 7 | |
Shareholder servicing fees - Class E | | | 5 | |
Trustees’ fees | | | 1 | |
Printing fees | | | 1 | |
Miscellaneous | | | 7 | |
| | | | |
Expenses before reductions | | | 454 | |
Expense reductions | | | (99 | ) |
| | | | |
Net expenses | | | 355 | |
| | | | |
Net investment income (loss) | | | 28 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 2,674 | |
Futures contracts | | | 440 | |
| | | | |
Net realized gain (loss) | | | 3,114 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 5,565 | |
Futures contracts | | | (52 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 5,513 | |
| | | | |
Net realized and unrealized gain (loss) | | | 8,627 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 8,655 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Growth Fund | | 43 |
Russell Investment Company
Russell U.S. Growth Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 28 | | | $ | (15 | ) |
Net realized gain (loss) | | | 3,114 | | | | 17,336 | |
Net change in unrealized appreciation (depreciation) | | | 5,513 | | | | (7,691 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 8,655 | | | | 9,630 | |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (4,028 | ) | | | (35,818 | ) |
Fund Reimbursements | | | — | | | | 145 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 4,627 | | | | (26,043 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 63,836 | | | | 89,879 | |
| | | | | | | | |
End of period | | $ | 68,463 | | | $ | 63,836 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 28 | | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 44 | | | Russell U.S. Growth Fund |
(This page intentionally left blank)
Russell Investment Company
Russell U.S. Growth Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 7.56 | | | | (.03 | ) | | | 1.04 | | | | 1.01 | | | | — | | | | — | |
October 31, 2011 | | | 6.97 | | | | (.07 | ) | | | .66 | | | | .59 | | | | — | | | | — | |
October 31, 2010 | | | 5.96 | | | | (.07 | ) | | | 1.08 | | | | 1.01 | | | | — | | | | — | |
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 | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.27 | | | | — | (f) | | | 1.16 | | | | 1.16 | | | | — | | | | — | |
October 31, 2011 | | | 7.58 | | | | (.02 | ) | | | .71 | | | | .69 | | | | — | | | | — | |
October 31, 2010 | | | 6.43 | | | | (.02 | ) | | | 1.17 | | | | 1.15 | | | | — | | | | — | |
October 31, 2009 | | | 5.46 | | | | — | (f) | | | .98 | | | | .98 | | | | (.01 | ) | | | — | |
October 31, 2008 | | | 9.72 | | | | — | (f) | | | (3.85 | ) | | | (3.85 | ) | | | — | | | | (.41 | ) |
October 31, 2007 | | | 8.25 | | | | (.02 | ) | | | 1.49 | | | | 1.47 | | | | — | | | | — | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.56 | | | | .01 | | | | 1.22 | | | | 1.23 | | | | — | | | | — | |
October 31, 2011 | | | 7.83 | | | | .01 | | | | .72 | | | | .73 | | | | — | | | | — | |
October 31, 2010 | | | 6.62 | | | | — | (f) | | | 1.22 | | | | 1.22 | | | | (.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 | | | | — | | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.48 | | | | .01 | | | | 1.19 | | | | 1.20 | | | | — | | | | — | |
October 31, 2011 | | | 7.76 | | | | — | (f) | | | .72 | | | | .72 | | | | — | | | | — | |
October 31, 2010 | | | 6.56 | | | | (.01 | ) | | | 1.21 | | | | 1.20 | | | | — | (f) | | | — | |
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 | | | | — | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 46 | | | Russell U.S. Growth Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 8.57 | | | | 13.66 | | | | 5,481 | | | | 2.34 | | | | 2.05 | | | | (.86 | ) | | | 65 | |
| | — | | | | 7.56 | | | | 8.18 | | | | 5,335 | | | | 2.29 | | | | 2.05 | | | | (.97 | ) | | | 142 | |
| | — | | | | 6.97 | | | | 16.95 | | | | 5,456 | | | | 2.24 | | | | 2.05 | | | | (1.08 | ) | | | 111 | |
| | — | | | | 5.96 | | | | 17.09 | | | | 5,770 | | | | 2.18 | | | | 2.11 | | | | (.76 | ) | | | 118 | |
| | (.41 | ) | | | 5.09 | | | | (41.76 | ) | | | 6,211 | | | | 2.31 | | | | 2.21 | | | | (.90 | ) | | | 120 | |
| | — | | | | 9.17 | | | | 16.96 | | | | 11,204 | | | | 2.27 | | | | 2.23 | | | | (1.14 | ) | | | 138 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 9.43 | | | | 14.16 | | | | 4,142 | | | | 1.59 | | | | 1.30 | | | | (.12 | ) | | | 65 | |
| | — | | | | 8.27 | | | | 8.97 | | | | 3,906 | | | | 1.54 | | | | 1.30 | | | | (.22 | ) | | | 142 | |
| | — | | | | 7.58 | | | | 17.88 | | | | 5,795 | | | | 1.49 | | | | 1.30 | | | | (.34 | ) | | | 111 | |
| | (.01 | ) | | | 6.43 | | | | 17.90 | | | | 5,381 | | | | 1.43 | | | | 1.36 | | | | (.02 | ) | | | 118 | |
| | (.41 | ) | | | 5.46 | | | | (41.23 | ) | | | 5,308 | | | | 1.48 | | | | 1.37 | | | | (.06 | ) | | | 120 | |
| | — | | | | 9.72 | | | | 17.82 | | | | 7,104 | | | | 1.41 | | | | 1.37 | | | | (.28 | ) | | | 138 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 9.79 | | | | 14.24 | | | | 26,130 | | | | 1.25 | | | | .92 | | | | .27 | | | | 65 | |
| | — | | | | 8.56 | | | | 9.45 | | | | 26,748 | | | | 1.19 | | | | .92 | | | | .10 | | | | 142 | |
| | (.01 | ) | | | 7.83 | | | | 18.44 | | | | 46,926 | | | | 1.16 | | | | .92 | | | | .05 | | | | 111 | |
| | (.03 | ) | | | 6.62 | | | | 18.34 | | | | 49,355 | | | | 1.11 | | | | .98 | | | | .38 | | | | 118 | |
| | (.41 | ) | | | 5.63 | | | | (41.05 | ) | | | 58,509 | | | | 1.13 | | | | .98 | | | | .33 | | | | 120 | |
| | — | | | | 9.98 | | | | 18.25 | | | | 113,989 | | | | 1.06 | | | | 1.00 | | | | .09 | | | | 138 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 9.68 | | | | 14.15 | | | | 32,710 | | | | 1.34 | | | | 1.05 | | | | .13 | | | | 65 | |
| | — | | | | 8.48 | | | | 9.28 | | | | 27,847 | | | | 1.29 | | | | 1.05 | | | | .02 | | | | 142 | |
| | — | | | | 7.76 | | | | 18.30 | | | | 31,701 | | | | 1.24 | | | | 1.05 | | | | (.09 | ) | | | 111 | |
| | (.02 | ) | | | 6.56 | | | | 18.15 | | | | 33,974 | | | | 1.19 | | | | 1.11 | | | | .25 | | | | 118 | |
| | (.41 | ) | | | 5.57 | | | | (41.19 | ) | | | 44,414 | | | | 1.30 | | | | 1.19 | | | | .12 | | | | 120 | |
| | — | | | | 9.89 | | | | 18.02 | | | | 79,962 | | | | 1.20 | | | | 1.16 | | | | (.07 | ) | | | 138 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Growth Fund | | 47 |
Russell Investment Company
Russell U.S. Value Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,117.52 | | | $ | 1,014.17 | |
Expenses Paid During Period* | | $ | 11.32 | | | $ | 10.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.15% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,121.62 | | | $ | 1,017.90 | |
Expenses Paid During Period* | | $ | 7.39 | | | $ | 7.02 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.40% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,123.15 | | | $ | 1,019.54 | |
Expenses Paid During Period* | | $ | 5.65 | | | $ | 5.37 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.07% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,121.76 | | | $ | 1,019.14 | |
Expenses Paid During Period* | | $ | 6.07 | | | $ | 5.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.15% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 48 | | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 94.8% | | | | | | | | |
| Consumer Discretionary - 9.2% | |
Aaron’s, Inc. Class A | | | 2,100 | | | | 57 | |
Advance Auto Parts, Inc. | | | 4,900 | | | | 450 | |
American Eagle Outfitters, Inc. | | | 18,900 | | | | 340 | |
AutoZone, Inc. (Æ) | | | 260 | | | | 103 | |
Avon Products, Inc. | | | 15,900 | | | | 343 | |
Best Buy Co., Inc. | | | 9,400 | | | | 207 | |
Big Lots, Inc. (Æ) | | | 11,700 | | | | 429 | |
Cabela’s, Inc. (Æ) | | | 1,000 | | | | 38 | |
CBS Corp. Class B | | | 7,200 | | | | 240 | |
Charter Communications, Inc. Class A (Æ) | | | 800 | | | | 48 | |
Coinstar, Inc. (Æ) | | | 1,300 | | | | 82 | |
Dana Holding Corp. | | | 5,400 | | | | 79 | |
Delphi Automotive PLC (Æ) | | | 2,600 | | | | 80 | |
Embraer SA - ADR (Æ) | | | 6,700 | | | | 232 | |
Expedia, Inc. | | | 700 | | | | 30 | |
Foot Locker, Inc. | | | 9,400 | | | | 287 | |
Gannett Co., Inc. | | | 5,200 | | | | 72 | |
Gap, Inc. (The) | | | 10,100 | | | | 288 | |
Harman International Industries, Inc. | | | 100 | | | | 5 | |
Hertz Global Holdings, Inc. (Æ) | | | 5,675 | | | | 87 | |
Home Depot, Inc. | | | 3,800 | | | | 197 | |
Johnson Controls, Inc. | | | 14,800 | | | | 473 | |
Kohl’s Corp. | | | 5,700 | | | | 286 | |
Koninklijke Philips Electronics NV | | | 20,400 | | | | 408 | |
Lear Corp. | | | 5,100 | | | | 212 | |
Lowe’s Cos., Inc. | | | 11,400 | | | | 359 | |
Macy’s, Inc. | | | 35,850 | | | | 1,470 | |
Target Corp. | | | 6,500 | | | | 377 | |
Time Warner Cable, Inc. | | | 800 | | | | 64 | |
Wal-Mart Stores, Inc. | | | 11,725 | | | | 691 | |
Wyndham Worldwide Corp. | | | 3,100 | | | | 156 | |
| | | | | | | | |
| | | | | | | 8,190 | |
| | | | | | | | |
| | |
| Consumer Staples - 5.1% | | | | | | | | |
Anheuser-Busch InBev NV - ADR | | | 2,350 | | | | 171 | |
Archer-Daniels-Midland Co. | | | 26,100 | | | | 805 | |
Bunge, Ltd. | | | 3,500 | | | | 226 | |
Clorox Co. (The) | | | 3,300 | | | | 231 | |
ConAgra Foods, Inc. | | | 4,700 | | | | 121 | |
Constellation Brands, Inc. Class A (Æ) | | | 5,300 | | | | 114 | |
CVS Caremark Corp. | | | 15,800 | | | | 705 | |
Dean Foods Co. (Æ) | | | 5,000 | | | | 61 | |
Kraft Foods, Inc. Class A | | | 6,150 | | | | 245 | |
Molson Coors Brewing Co. Class B | | | 7,900 | | | | 329 | |
Philip Morris International, Inc. | | | 4,900 | | | | 439 | |
Safeway, Inc. | | | 12,600 | | | | 256 | |
Smithfield Foods, Inc. (Æ) | | | 7,300 | | | | 153 | |
Tyson Foods, Inc. Class A | | | 17,800 | | | | 325 | |
Walgreen Co. | | | 10,600 | | | | 372 | |
| | | | | | | | |
| | | | | | | 4,553 | |
| | | | | | | | |
| | |
| Energy - 11.0% | | | | | | | | |
Anadarko Petroleum Corp. | | | 2,500 | | | | 183 | |
Apache Corp. | | | 6,475 | | | | 621 | |
Arch Coal, Inc. | | | 26,550 | | | | 259 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Baker Hughes, Inc. | | | 6,875 | | | | 303 | |
BP PLC - ADR | | | 1,700 | | | | 74 | |
Chesapeake Energy Corp. | | | 6,700 | | | | 123 | |
Chevron Corp. | | | 18,485 | | | | 1,970 | |
ConocoPhillips | | | 15,575 | | | | 1,116 | |
Devon Energy Corp. | | | 1,350 | | | | 94 | |
Energy XXI Bermuda, Ltd. (Æ) | | | 2,400 | | | | 90 | |
Exxon Mobil Corp. | | | 3,900 | | | | 337 | |
Helix Energy Solutions Group, Inc. (Æ) | | | 3,000 | | | | 61 | |
HollyFrontier Corp. | | | 2,100 | | | | 65 | |
Hubbell, Inc. Class B (Æ) | | | 600 | | | | 48 | |
Marathon Oil Corp. | | | 18,700 | | | | 549 | |
Marathon Petroleum Corp. | | | 20,550 | | | | 855 | |
Murphy Oil Corp. | | | 8,200 | | | | 451 | |
Nabors Industries, Ltd. (Æ) | | | 6,400 | | | | 107 | |
National Oilwell Varco, Inc. | | | 2,550 | | | | 193 | |
Noble Corp. (Æ) | | | 10,700 | | | | 407 | |
Plains Exploration & Production Co. (Æ) | | | 400 | | | | 16 | |
Statoil ASA - ADR | | | 14,900 | | | | 401 | |
Suncor Energy, Inc. | | | 4,300 | | | | 142 | |
Tesoro Corp. (Æ) | | | 9,100 | | | | 212 | |
Total SA - ADR | | | 4,700 | | | | 226 | |
Valero Energy Corp. | | | 35,650 | | | | 881 | |
| | | | | | | | |
| | | | | | | 9,784 | |
| | | | | | | | |
| | |
| Financial Services - 24.2% | | | | | | | | |
Aflac, Inc. | | | 2,650 | | | | 119 | |
Allied World Assurance Co. Holdings AG | | | 1,000 | | | | 72 | |
Allstate Corp. (The) | | | 37,700 | | | | 1,257 | |
American Capital, Ltd. (Æ) | | | 7,800 | | | | 77 | |
American Financial Group, Inc. | | | 1,100 | | | | 43 | |
American International Group, Inc. (Æ) | | | 2,200 | | | | 75 | |
Ameriprise Financial, Inc. | | | 9,000 | | | | 488 | |
Assurant, Inc. | | | 3,700 | | | | 149 | |
Assured Guaranty, Ltd. | | | 4,800 | | | | 68 | |
Bank of America Corp. | | | 21,100 | | | | 171 | |
Bank of New York Mellon Corp. (The) | | | 15,600 | | | | 369 | |
BB&T Corp. | | | 13,300 | | | | 426 | |
BlackRock, Inc. Class A | | | 450 | | | | 86 | |
Capital One Financial Corp. | | | 7,350 | | | | 408 | |
CBL & Associates Properties, Inc. (ö) | | | 3,600 | | | | 67 | |
Chubb Corp. (The) | | | 1,700 | | | | 124 | |
Citigroup, Inc. | | | 12,380 | | | | 409 | |
Comerica, Inc. | | | 3,300 | | | | 106 | |
CommonWealth REIT (ö) | | | 300 | | | | 6 | |
Cullen/Frost Bankers, Inc. | | | 3,900 | | | | 230 | |
Discover Financial Services | | | 23,100 | | | | 783 | |
Equity Lifestyle Properties, Inc. Class A (ö) | | | 600 | | | | 42 | |
Fidelity National Information Services, Inc. | | | 2,900 | | | | 98 | |
Fifth Third Bancorp | | | 18,475 | | | | 263 | |
First Republic Bank (Æ) | | | 5,100 | | | | 168 | |
Genworth Financial, Inc. Class A (Æ) | | | 74,050 | | | | 445 | |
Goldman Sachs Group, Inc. (The) | | | 10,990 | | | | 1,265 | |
Hartford Financial Services Group, Inc. | | | 34,650 | | | | 712 | |
Hospitality Properties Trust (ö) | | | 2,200 | | | | 61 | |
JPMorgan Chase & Co. | | | 77,800 | | | | 3,344 | |
KeyCorp | | | 67,300 | | | | 541 | |
| | |
| Russell U.S. Value Fund | | 49 |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
LaSalle Hotel Properties (ö) | | | 1,500 | | | | 44 | |
Lender Processing Services, Inc. | | | 2,100 | | | | 56 | |
Lincoln National Corp. | | | 5,650 | | | | 140 | |
Mercury General Corp. | | | 4,700 | | | | 212 | |
MetLife, Inc. | | | 25,950 | | | | 935 | |
Morgan Stanley | | | 41,100 | | | | 710 | |
Northern Trust Corp. | | | 8,700 | | | | 414 | |
People’s United Financial, Inc. | | | 13,600 | | | | 168 | |
PNC Financial Services Group, Inc. | | | 26,175 | | | | 1,736 | |
Prudential Financial, Inc. | | | 17,050 | | | | 1,032 | |
Public Storage (ö) | | | 430 | | | | 62 | |
Raymond James Financial, Inc. | | | 1,500 | | | | 55 | |
Regions Financial Corp. | | | 15,400 | | | | 104 | |
Reinsurance Group of America, Inc. Class A | | | 1,400 | | | | 81 | |
Simon Property Group, Inc. (ö) | | | 2,180 | | | | 339 | |
SLM Corp. | | | 7,450 | | | | 110 | |
SunTrust Banks, Inc. | | | 14,200 | | | | 345 | |
Travelers Cos., Inc. (The) | | | 2,300 | | | | 148 | |
US Bancorp | | | 10,400 | | | | 335 | |
Validus Holdings, Ltd. | | | 1,900 | | | | 62 | |
Valley National Bancorp | | | 15,608 | | | | 197 | |
Wells Fargo & Co. | | | 56,150 | | | | 1,877 | |
| | | | | | | | |
| | | | | | | 21,634 | |
| | | | | | | | |
| | |
| Health Care - 12.4% | | | | | | | | |
Abbott Laboratories | | | 13,000 | | | | 807 | |
Aetna, Inc. | | | 11,100 | | | | 489 | |
Allscripts Healthcare Solutions, Inc. (Æ) | | | 900 | | | | 10 | |
AmerisourceBergen Corp. Class A | | | 400 | | | | 15 | |
Amgen, Inc. | | | 18,550 | | | | 1,319 | |
Baxter International, Inc. | | | 6,600 | | | | 366 | |
Biogen Idec, Inc. (Æ) | | | 1,080 | | | | 145 | |
Bristol-Myers Squibb Co. | | | 4,875 | | | | 163 | |
Celgene Corp. (Æ) | | | 1,475 | | | | 108 | |
Community Health Systems, Inc. (Æ) | | | 33,575 | | | | 817 | |
Eli Lilly & Co. | | | 3,250 | | | | 134 | |
Gilead Sciences, Inc. (Æ) | | | 10,250 | | | | 533 | |
Hospira, Inc. (Æ) | | | 6,300 | | | | 221 | |
Humana, Inc. | | | 4,700 | | | | 379 | |
Johnson & Johnson | | | 5,600 | | | | 364 | |
McKesson Corp. | | | 5,025 | | | | 459 | |
Medtronic, Inc. | | | 7,300 | | | | 279 | |
Merck & Co., Inc. | | | 10,100 | | | | 396 | |
Pfizer, Inc. | | | 110,325 | | | | 2,530 | |
Teva Pharmaceutical Industries, Ltd. - ADR | | | 18,925 | | | | 866 | |
UnitedHealth Group, Inc. | | | 9,450 | | | | 531 | |
Warner Chilcott PLC Class A (Æ) | | | 7,400 | | | | 161 | |
| | | | | | | | |
| | | | | | | 11,092 | |
| | | | | | | | |
|
| Materials and Processing - 5.7% | |
Agrium, Inc. | | | 1,050 | | | | 92 | |
Air Products & Chemicals, Inc. | | | 2,600 | | | | 222 | |
Ashland, Inc. | | | 2,050 | | | | 135 | |
Bemis Co., Inc. | | | 8,000 | | | | 259 | |
CF Industries Holdings, Inc. | | | 640 | | | | 124 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Domtar Corp. | | | 2,725 | | | | 238 | |
Freeport-McMoRan Copper & Gold, Inc. | | | 12,200 | | | | 467 | |
Huntsman Corp. | | | 25,400 | | | | 360 | |
International Paper Co. | | | 10,900 | | | | 363 | |
LyondellBasell Industries NV Class A | | | 9,650 | | | | 403 | |
Martin Marietta Materials, Inc. | | | 3,400 | | | | 282 | |
Nucor Corp. | | | 8,100 | | | | 318 | |
PPG Industries, Inc. | | | 4,645 | | | | 489 | |
Sealed Air Corp. | | | 32,200 | | | | 618 | |
Sherwin-Williams Co. (The) | | | 110 | | | | 13 | |
Steel Dynamics, Inc. | | | 22,500 | | | | 287 | |
Timken Co. | | | 2,475 | | | | 140 | |
Titanium Metals Corp. | | | 16,900 | | | | 250 | |
| | | | | | | | |
| | | | | | | 5,060 | |
| | | | | | | | |
|
| Producer Durables - 11.5% | |
AECOM Technology Corp. (Æ) | | | 12,775 | | | | 282 | |
Avery Dennison Corp. | | | 12,825 | | | | 410 | |
Caterpillar, Inc. | | | 675 | | | | 69 | |
Chicago Bridge & Iron Co. NV | | | 5,100 | | | | 227 | |
Crane Co. | | | 1,400 | | | | 62 | |
Cummins, Inc. | | | 2,115 | | | | 245 | |
Delta Air Lines, Inc. (Æ) | | | 24,300 | | | | 266 | |
Dover Corp. | | | 8,000 | | | | 501 | |
Eaton Corp. | | | 5,500 | | | | 265 | |
Emerson Electric Co. | | | 9,100 | | | | 478 | |
General Dynamics Corp. | | | 3,500 | | | | 236 | |
General Electric Co. | | | 112,350 | | | | 2,200 | |
Harsco Corp. | | | 12,400 | | | | 277 | |
Ingersoll-Rand PLC | | | 11,900 | | | | 506 | |
KBR, Inc. | | | 5,250 | | | | 178 | |
Lincoln Electric Holdings, Inc. | | | 300 | | | | 15 | |
Lockheed Martin Corp. | | | 3,600 | | | | 326 | |
MSC Industrial Direct Co., Inc. Class A | | | 2,000 | | | | 147 | |
Navistar International Corp. (Æ) | | | 2,900 | | | | 98 | |
Norfolk Southern Corp. | | | 3,200 | | | | 233 | |
Parker Hannifin Corp. | | | 4,900 | | | | 430 | |
Pentair, Inc. | | | 5,300 | | | | 230 | |
Pitney Bowes, Inc. | | | 13,500 | | | | 231 | |
Raytheon Co. | | | 2,900 | | | | 157 | |
Republic Services, Inc. Class A | | | 12,700 | | | | 348 | |
Rockwell Automation, Inc. | | | 3,200 | | | | 247 | |
RR Donnelley & Sons Co. | | | 15,800 | | | | 198 | |
Spirit Aerosystems Holdings, Inc. Class A (Æ) | | | 28,500 | | | | 713 | |
Tidewater, Inc. | | | 6,700 | | | | 369 | |
Tyco International, Ltd. | | | 1,600 | | | | 90 | |
Union Pacific Corp. | | | 1,080 | | | | 121 | |
URS Corp. | | | 2,600 | | | | 107 | |
WW Grainger, Inc. | | | 170 | | | | 35 | |
| | | | | | | | |
| | | | | | | 10,297 | |
| | | | | | | | |
| | |
| Technology - 8.4% | | | | | | | | |
Adobe Systems, Inc. (Æ) | | | 2,500 | | | | 84 | |
Apple, Inc. (Æ) | | | 990 | | | | 578 | |
Applied Materials, Inc. | | | 79,975 | | | | 959 | |
Broadcom Corp. Class A (Æ) | | | 4,600 | | | | 168 | |
| | | | |
| | 50 | | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Cisco Systems, Inc. | | | 33,125 | | | | 668 | |
Dell, Inc. (Æ) | | | 43,325 | | | | 709 | |
Dolby Laboratories, Inc. Class A (Æ) | | | 4,200 | | | | 165 | |
EMC Corp. (Æ) | | | 3,592 | | | | 101 | |
Google, Inc. Class A (Æ) | | | 140 | | | | 85 | |
Harris Corp. | | | 4,400 | | | | 200 | |
Ingram Micro, Inc. Class A (Æ) | | | 3,800 | | | | 74 | |
Intel Corp. | | | 7,000 | | | | 199 | |
KLA-Tencor Corp. | | | 2,100 | | | | 110 | |
Lam Research Corp. (Æ) | | | 2,550 | | | | 106 | |
Lambda TD Software, Inc. (Æ) | | | 5,200 | | | | 60 | |
Linear Technology Corp. | | | 9,800 | | | | 321 | |
LSI Corp. (Æ) | | | 1,300 | | | | 10 | |
Marvell Technology Group, Ltd. (Æ) | | | 4,600 | | | | 69 | |
Microsoft Corp. | | | 32,950 | | | | 1,055 | |
Seagate Technology PLC | | | 7,800 | | | | 240 | |
Skyworks Solutions, Inc. (Æ) | | | 3,250 | | | | 88 | |
Synopsys, Inc. (Æ) | | | 3,000 | | | | 90 | |
Tech Data Corp. (Æ) | | | 900 | | | | 48 | |
Texas Instruments, Inc. | | | 29,115 | | | | 930 | |
Western Digital Corp. (Æ) | | | 10,100 | | | | 392 | |
| | | | | | | | |
| | | | | | | 7,509 | |
| | | | | | | | |
| | |
| Utilities - 7.3% | | | | | | | | |
AES Corp. (The) (Æ) | | | 27,500 | | | | 344 | |
Ameren Corp. | | | 8,500 | | | | 279 | |
American Electric Power Co., Inc. | | | 11,900 | | | | 462 | |
American Water Works Co., Inc. | | | 2,700 | | | | 92 | |
AT&T, Inc. | | | 47,000 | | | | 1,547 | |
Cleco Corp. | | | 1,400 | | | | 57 | |
CMS Energy Corp. | | | 3,400 | | | | 78 | |
DTE Energy Co. | | | 6,400 | | | | 361 | |
Encana Corp. | | | 12,000 | | | | 251 | |
Energen Corp. | | | 2,050 | | | | 107 | |
Exelon Corp. | | | 4,900 | | | | 191 | |
FirstEnergy Corp. | | | 1,525 | | | | 71 | |
MDU Resources Group, Inc. | | | 10,500 | | | | 241 | |
National Fuel Gas Co. | | | 5,000 | | | | 237 | |
NextEra Energy, Inc. | | | 4,100 | | | | 264 | |
NiSource, Inc. | | | 9,200 | | | | 227 | |
NV Energy, Inc. | | | 13,900 | | | | 231 | |
Pinnacle West Capital Corp. | | | 5,000 | | | | 242 | |
Portland General Electric Co. | | | 2,200 | | | | 57 | |
PPL Corp. | | | 10,400 | | | | 284 | |
Southern Co. | | | 3,300 | | | | 152 | |
Telephone & Data Systems, Inc. | | | 600 | | | | 15 | |
Verizon Communications, Inc. | | | 18,500 | | | | 747 | |
| | | | | | | | |
| | | | | | | 6,537 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $74,908) | | | | | | | 84,656 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Short-Term Investments - 4.9% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 4,350,617 | (¥) | | | 4,351 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $4,351) | | | | | | | 4,351 | |
| | | | | | | | |
| |
| Other Securities - 1.6% | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 229,132 | (¥) | | | 233 | |
Russell U.S. Cash Collateral Fund (×) | | | 1,242,195 | (¥) | | | 1,242 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $1,471) | | | | | | | 1,475 | |
| | | | | | | | |
| |
Total Investments - 101.3%
(identified cost $80,730) | | | | 90,482 | |
| |
Other Assets and Liabilities,
Net - (1.3%) | | | | (1,149 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 89,333 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Value Fund | | 51 |
Russell Investment Company
Russell U.S. Value Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | | | |
Russell 1000 Value Index Futures | | | 34 | | | | USD | | | | 2,314 | | | | 06/12 | | | | (2) | |
S&P 500 E-Mini Index Futures (CME) | | | 32 | | | | USD | | | | 2,230 | | | | 06/12 | | | | 17 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | | | | 15 | |
| | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 8,190 | | | $ | — | | | $ | — | | | $ | 8,190 | | | | 9.2 | |
Consumer Staples | | | 4,553 | | | | — | | | | — | | | | 4,553 | | | | 5.1 | |
Energy | | | 9,784 | | | | — | | | | — | | | | 9,784 | | | | 11.0 | |
Financial Services | | | 21,634 | | | | — | | | | — | | | | 21,634 | | | | 24.2 | |
Health Care | | | 11,092 | | | | — | | | | — | | | | 11,092 | | | | 12.4 | |
Materials and Processing | | | 5,060 | | | | — | | | | — | | | | 5,060 | | | | 5.7 | |
Producer Durables | | | 10,297 | | | | — | | | | — | | | | 10,297 | | | | 11.5 | |
Technology | | | 7,509 | | | | — | | | | — | | | | 7,509 | | | | 8.4 | |
Utilities | | | 6,537 | | | | — | | | | — | | | | 6,537 | | | | 7.3 | |
Short-Term Investments | | | — | | | | 4,351 | | | | — | | | | 4,351 | | | | 4.9 | |
Other Securities | | | — | | | | 1,475 | | | | — | | | | 1,475 | | | | 1.6 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 84,656 | | | | 5,826 | | | | — | | | | 90,482 | | | | 101.3 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (1.3 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 15 | | | | — | | | | — | | | | 15 | | | | — | * |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 15 | | | $ | — | | | $ | — | | | $ | 15 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 52 | | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 17 | |
| | | | |
| |
Location: Statement of Assets and Liabilities - Liabilities | | | | |
Daily variation margin on futures contracts* | | $ | (2 | ) |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 614 | |
| | | | |
| |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (127 | ) |
| | | | |
| * | 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 and 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 | | 53 |
Russell Investment Company
Russell U.S. Value Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 80,730 | |
Investments, at market*, ** | | | 90,482 | |
Cash | | | 17 | |
Cash (restricted) | | | 285 | |
Receivables: | | | | |
Dividends and interest | | | 120 | |
Investments sold | | | 821 | |
Fund shares sold | | | 52 | |
| | | | |
Total assets | | | 91,777 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 718 | |
Fund shares redeemed | | | 33 | |
Accrued fees to affiliates | | | 71 | |
Other accrued expenses | | | 132 | |
Daily variation margin on futures contracts | | | 19 | |
Payable upon return of securities loaned | | | 1,471 | |
| | | | |
Total liabilities | | | 2,444 | |
| | | | |
| | | | |
Net Assets | | $ | 89,333 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 54 | | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 21 | |
Accumulated net realized gain (loss) | | | (105,568 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 9,752 | |
Futures contracts | | | 15 | |
Shares of beneficial interest | | | 103 | |
Additional paid-in capital | | | 185,010 | |
| | | | |
Net Assets | | $ | 89,333 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class C(a) | | $ | 8.45 | |
Class C — Net assets | | $ | 8,197,781 | |
Class C — Shares outstanding ($.01 par value) | | | 970,303 | |
Net asset value per share: Class E(a) | | $ | 8.72 | |
Class E — Net assets | | $ | 2,119,584 | |
Class E — Shares outstanding ($.01 par value) | | | 243,127 | |
Net asset value per share: Class I(a) | | $ | 8.73 | |
Class I — Net assets | | $ | 21,578,685 | |
Class I — Shares outstanding ($.01 par value) | | | 2,470,455 | |
Net asset value per share: Class S(a) | | $ | 8.71 | |
Class S — Net assets | | $ | 57,436,917 | |
Class S — Shares outstanding ($.01 par value) | | | 6,593,029 | |
Amounts in thousands | | | | |
| | | | |
* Securities on loan included in investments | | $ | 1,900 | |
** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 5,826 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Value Fund | | 55 |
Russell Investment Company
Russell U.S. Value Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 1,097 | |
Dividends from affiliated Russell money market funds | | | 3 | |
Securities lending income | | | 11 | |
| | | | |
Total investment income | | | 1,111 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 307 | |
Administrative fees | | | 22 | |
Custodian fees | | | 54 | |
Distribution fees - Class C | | | 31 | |
Transfer agent fees - Class C | | | 7 | |
Transfer agent fees - Class E | | | 2 | |
Transfer agent fees - Class I | | | 10 | |
Transfer agent fees - Class S | | | 51 | |
Professional fees | | | 18 | |
Registration fees | | | 33 | |
Shareholder servicing fees - Class C | | | 10 | |
Shareholder servicing fees - Class E | | | 3 | |
Trustees’ fees | | | 1 | |
Printing fees | | | 3 | |
Miscellaneous | | | 8 | |
| | | | |
Expenses before reductions | | | 560 | |
Expense reductions | | | (22 | ) |
| | | | |
Net expenses | | | 538 | |
| | | | |
Net investment income (loss) | | | 573 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 3,411 | |
Futures contracts | | | 614 | |
| | | | |
Net realized gain (loss) | | | 4,025 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 5,920 | |
Futures contracts | | | (127 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 5,793 | |
| | | | |
Net realized and unrealized gain (loss) | | | 9,818 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 10,391 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 56 | | | Russell U.S. Value Fund |
Russell Investment Company
Russell U.S. Value Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 573 | | | $ | 1,191 | |
Net realized gain (loss) | | | 4,025 | | | | 16,734 | |
Net change in unrealized appreciation (depreciation) | | | 5,793 | | | | (9,005 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 10,391 | | | | 8,920 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class C | | | (20 | ) | | | (27 | ) |
Class E | | | (13 | ) | | | (20 | ) |
Class I | | | (153 | ) | | | (434 | ) |
Class S | | | (400 | ) | | | (686 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (586 | ) | | | (1,167 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (7,766 | ) | | | (46,153 | ) |
Fund Reimbursements | | | — | | | | 145 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 2,039 | | | | (38,255 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 87,294 | | | | 125,549 | |
| | | | | | | | |
End of period | | $ | 89,333 | | | $ | 87,294 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 21 | | | $ | 34 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Value Fund | | 57 |
Russell Investment Company
Russell U.S. Value Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 7.56 | | | | .02 | | | | .89 | | | | .91 | | | | (.02 | ) | | | — | |
October 31, 2011 | | | 7.28 | | | | .01 | | | | .29 | | | | .30 | | | | (.02 | ) | | | — | |
October 31, 2010 | | | 6.43 | | | | (.03 | ) | | | .88 | | | | .85 | | | | — | (f) | | | — | |
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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 7.80 | | | | .05 | | | | .92 | | | | .97 | | | | (.05 | ) | | | — | |
October 31, 2011 | | | 7.48 | | | | .07 | | | | .31 | | | | .38 | | | | (.06 | ) | | | — | |
October 31, 2010 | | | 6.58 | | | | .03 | | | | .90 | | | | .93 | | | | (.03 | ) | | | — | |
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 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 7.82 | | | | .06 | | | | .91 | | | | .97 | | | | (.06 | ) | | | — | |
October 31, 2011 | | | 7.50 | | | | .10 | | | | .32 | | | | .42 | | | | (.10 | ) | | | — | |
October 31, 2010 | | | 6.60 | | | | .05 | | | | .90 | | | | .95 | | | | (.05 | ) | | | — | |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 7.80 | | | | .06 | | | | .91 | | | | .97 | | | | (.06 | ) | | | — | |
October 31, 2011 | | | 7.49 | | | | .09 | | | | .31 | | | | .40 | | | | (.09 | ) | | | — | |
October 31, 2010 | | | 6.58 | | | | .04 | | | | .91 | | | | .95 | | | | (.04 | ) | | | — | |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 58 | | | Russell U.S. Value Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.02 | ) | | | 8.45 | | | | 11.75 | | | | 8,198 | | | | 2.20 | | | | 2.15 | | | | .39 | | | | 42 | |
| | (.02 | ) | | | 7.56 | | | | 4.59 | | | | 8,314 | | | | 2.16 | | | | 2.13 | | | | .10 | | | | 127 | |
| | — | | | | 7.28 | | | | 13.07 | | | | 10,044 | | | | 2.10 | | | | 2.10 | | | | (.40 | ) | | | 97 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.05 | ) | | | 8.72 | | | | 12.16 | | | | 2,119 | | | | 1.45 | | | | 1.40 | | | | 1.14 | | | | 42 | |
| | (.06 | ) | | | 7.80 | | | | 5.40 | | | | 2,163 | | | | 1.40 | | | | 1.38 | | | | .86 | | | | 127 | |
| | (.03 | ) | | | 7.48 | | | | 14.10 | | | | 4,319 | | | | 1.35 | | | | 1.35 | | | | .37 | | | | 97 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.06 | ) | | | 8.73 | | | | 12.31 | | | | 21,579 | | | | 1.12 | | | | 1.07 | | | | 1.46 | | | | 42 | |
| | (.10 | ) | | | 7.82 | | | | 5.80 | | | | 20,564 | | | | 1.07 | | | | 1.05 | | | | 1.15 | | | | 127 | |
| | (.05 | ) | | | 7.50 | | | | 14.43 | | | | 42,622 | | | | 1.03 | | | | 1.03 | | | | .68 | | | | 97 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.06 | ) | | | 8.71 | | | | 12.18 | | | | 57,437 | | | | 1.20 | | | | 1.15 | | | | 1.39 | | | | 42 | |
| | (.09 | ) | | | 7.80 | | | | 5.72 | | | | 56,253 | | | | 1.16 | | | | 1.13 | | | | 1.10 | | | | 127 | |
| | (.04 | ) | | | 7.49 | | | | 14.38 | | | | 68,563 | | | | 1.11 | | | | 1.11 | | | | .59 | | | | 97 | |
| | (.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 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Value Fund | | 59 |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Shareholder Expense Example — April 30, 2012 (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 February 7, 2012 (commencement of operations) to April 30, 2012.
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 | | | | | | | | |
February 7, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,049.30 | | | $ | 1,019.39 | |
Expenses Paid During Period* | | $ | 2.59 | | | $ | 5.52 | |
| * | Actual expenses are equal to the Fund’s annualized expense ratio of 1.10% (representing the 84-day period annualized), multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period since commencement of operations). Hypothetical expenses are equal to the Fund’s annualized expense ratio of 1.10% (representing the six-month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
February 7, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,047.50 | | | $ | 1,015.66 | |
Expenses Paid During Period* | | $ | 4.35 | | | $ | 9.27 | |
| * | Actual expenses are equal to the Fund’s annualized expense ratio of 1.85% (representing the 84-day period annualized), multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period since commencement of operations). Hypothetical expenses are equal to the Fund’s annualized expense ratio of 1.85% (representing the six-month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
February 7, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,049.50 | | | $ | 1,020.64 | |
Expenses Paid During Period* | | $ | 2.00 | | | $ | 4.27 | |
| * | Actual expenses are equal to the Fund’s annualized expense ratio of 0.85% (representing the 84-day period annualized), multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period since commencement of operations). Hypothetical 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 182/366 (to reflect the one-half year period). |
| | | | |
| | 60 | | | Russell U.S. Large Cap Equity Fund |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 90.9% | |
| Consumer Discretionary - 13.5% | |
Amazon.com, Inc. (Æ) | | | 4,800 | | | | 1,113 | |
AutoZone, Inc. (Æ) | | | 600 | | | | 238 | |
Bed Bath & Beyond, Inc. (Æ) | | | 6,040 | | | | 425 | |
BorgWarner, Inc. (Æ) | | | 3,200 | | | | 253 | |
Cablevision Systems Corp. Class A | | | 11,600 | | | | 172 | |
Chipotle Mexican Grill, Inc. Class A (Æ) | | | 300 | | | | 124 | |
Coach, Inc. | | | 4,700 | | | | 344 | |
Comcast Corp. Class A | | | 19,300 | | | | 585 | |
Costco Wholesale Corp. | | | 4,780 | | | | 421 | |
Dunkin’ Brands Group, Inc. | | | 2,400 | | | | 78 | |
eBay, Inc. (Æ) | | | 36,260 | | | | 1,488 | |
Estee Lauder Cos., Inc. (The) Class A | | | 10,840 | | | | 708 | |
Ford Motor Co. | | | 39,860 | | | | 450 | |
GameStop Corp. Class A | | | 8,380 | | | | 191 | |
General Motors Co. (Æ) | | | 11,770 | | | | 271 | |
Goodyear Tire & Rubber Co. (The) (Æ) | | | 19,100 | | | | 210 | |
Harman International Industries, Inc. | | | 2,390 | | | | 118 | |
Hasbro, Inc. | | | 5,316 | | | | 195 | |
Home Depot, Inc. | | | 11,810 | | | | 612 | |
Honda Motor Co., Ltd. - ADR (Æ) | | | 14,800 | | | | 533 | |
International Game Technology | | | 34,179 | | | | 533 | |
Johnson Controls, Inc. | | | 52,100 | | | | 1,665 | |
Kohl’s Corp. | | | 3,900 | | | | 196 | |
Las Vegas Sands Corp. | | | 9,120 | | | | 506 | |
Limited Brands, Inc. | | | 5,990 | | | | 298 | |
Lowe’s Cos., Inc. | | | 11,900 | | | | 374 | |
Lululemon Athletica, Inc. (Æ) | | | 2,760 | | | | 205 | |
MGM Resorts International (Æ) | | | 19,330 | | | | 259 | |
Michael Kors Holdings, Ltd. (Æ) | | | 5,483 | | | | 250 | |
News Corp. Class A | | | 14,730 | | | | 289 | |
Nike, Inc. Class B | | | 5,040 | | | | 564 | |
priceline.com, Inc. (Æ) | | | 730 | | | | 555 | |
Ralph Lauren Corp. Class A | | | 1,470 | | | | 253 | |
Ross Stores, Inc. | | | 2,300 | | | | 142 | |
Scripps Networks Interactive, Inc. Class A | | | 9,500 | | | | 477 | |
Stanley Black & Decker, Inc. | | | 5,400 | | | | 395 | |
Starbucks Corp. | | | 22,180 | | | | 1,272 | |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | | 13,360 | | | | 791 | |
Time Warner, Inc. | | | 61,970 | | | | 2,322 | |
TJX Cos., Inc. | | | 10,400 | | | | 434 | |
Tractor Supply Co. | | | 1,450 | | | | 143 | |
Ulta Salon Cosmetics & Fragrance, Inc. | | | 1,760 | | | | 155 | |
VF Corp. | | | 1,990 | | | | 303 | |
Viacom, Inc. Class B | | | 33,380 | | | | 1,549 | |
Wal-Mart Stores, Inc. | | | 10,200 | | | | 601 | |
Walt Disney Co. (The) | | | 9,100 | | | | 392 | |
Yum! Brands, Inc. | | | 26,440 | | | | 1,923 | |
| | | | | | | | |
| | | | | | | 25,375 | |
| | | | | | | | |
| | |
| Consumer Staples - 7.1% | | | | | | | | |
Archer-Daniels-Midland Co. | | | 26,090 | | | | 804 | |
Campbell Soup Co. | | | 5,380 | | | | 182 | |
Cia de Bebidas das Americas - ADR | | | 18,620 | | | | 782 | |
Clorox Co. (The) | | | 3,290 | | | | 231 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Coca-Cola Co. (The) | | | 30,890 | | | | 2,358 | |
Colgate-Palmolive Co. | | | 10,930 | | | | 1,081 | |
ConAgra Foods, Inc. | | | 29,860 | | | | 771 | |
CVS Caremark Corp. | | | 4,250 | | | | 190 | |
Dean Foods Co. (Æ) | | | 22,670 | | | | 278 | |
Kellogg Co. | | | 3,850 | | | | 195 | |
Kraft Foods, Inc. Class A | | | 8,950 | | | | 356 | |
Kroger Co. (The) | | | 14,950 | | | | 348 | |
Lorillard, Inc. | | | 2,590 | | | | 350 | |
Molson Coors Brewing Co. Class B | | | 9,150 | | | | 380 | |
PepsiCo, Inc. | | | 5,850 | | | | 386 | |
Philip Morris International, Inc. | | | 7,770 | | | | 695 | |
Procter & Gamble Co. (The) | | | 51,800 | | | | 3,298 | |
Ralcorp Holdings, Inc. (Æ) | | | 800 | | | | 58 | |
Tyson Foods, Inc. Class A | | | 10,660 | | | | 195 | |
Whole Foods Market, Inc. | | | 4,700 | | | | 390 | |
| | | | | | | | |
| | | | | | | 13,328 | |
| | | | | | | | |
| | |
| Energy - 9.1% | | | | | | | | |
Anadarko Petroleum Corp. | | | 5,780 | | | | 423 | |
Apache Corp. | | | 4,600 | | | | 441 | |
Baker Hughes, Inc. | | | 17,200 | | | | 759 | |
Cabot Oil & Gas Corp. | | | 8,050 | | | | 283 | |
Chevron Corp. | | | 15,170 | | | | 1,616 | |
ConocoPhillips | | | 30,970 | | | | 2,218 | |
EOG Resources, Inc. | | | 3,990 | | | | 438 | |
EQT Corp. | | | 6,280 | | | | 313 | |
Exxon Mobil Corp. | | | 28,000 | | | | 2,417 | |
FMC Technologies, Inc. (Æ) | | | 4,770 | | | | 224 | |
Halliburton Co. | | | 6,860 | | | | 235 | |
Marathon Petroleum Corp. | | | 16,430 | | | | 684 | |
Murphy Oil Corp. | | | 4,580 | | | | 252 | |
National Oilwell Varco, Inc. | | | 19,990 | | | | 1,514 | |
Noble Energy, Inc. | | | 6,170 | | | | 613 | |
Occidental Petroleum Corp. | | | 20,320 | | | | 1,854 | |
Patterson-UTI Energy, Inc. | | | 8,270 | | | | 134 | |
QEP Resources, Inc. | | | 13,000 | | | | 401 | |
Range Resources Corp. | | | 5,500 | | | | 367 | |
Schlumberger, Ltd. | | | 13,480 | | | | 999 | |
SM Energy Co. | | | 600 | | | | 40 | |
Southwestern Energy Co. (Æ) | | | 18,250 | | | | 576 | |
Valero Energy Corp. | | | 11,450 | | | | 283 | |
| | | | | | | | |
| | | | | | | 17,084 | |
| | | | | | | | |
| | |
| Financial Services - 13.7% | | | | | | | | |
ACE, Ltd. | | | 3,340 | | | | 254 | |
American Express Co. | | | 19,190 | | | | 1,155 | |
Aon PLC | | | 11,700 | | | | 606 | |
Assurant, Inc. | | | 5,380 | | | | 217 | |
Bank of New York Mellon Corp. (The) | | | 8,840 | | | | 209 | |
BB&T Corp. | | | 30,820 | | | | 987 | |
Capital One Financial Corp. | | | 38,390 | | | | 2,131 | |
Citigroup, Inc. | | | 34,220 | | | | 1,131 | |
Comerica, Inc. | | | 8,800 | | | | 282 | |
Discover Financial Services | | | 27,720 | | | | 940 | |
First Republic Bank (Æ) | | | 4,100 | | | | 135 | |
Franklin Resources, Inc. | | | 4,100 | | | | 515 | |
| | |
| Russell U.S. Large Cap Equity Fund | | 61 |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Hanover Insurance Group, Inc. (The) | | | 2,900 | | | | 117 | |
Interactive Brokers Group, Inc. Class A | | | 4,580 | | | | 69 | |
JPMorgan Chase & Co. | | | 68,680 | | | | 2,953 | |
Markel Corp. (Æ) | | | 500 | | | | 220 | |
Mastercard, Inc. Class A | | | 2,960 | | | | 1,338 | |
MetLife, Inc. | | | 54,540 | | | | 1,965 | |
Northern Trust Corp. | | | 14,130 | | | | 673 | |
Piedmont Office Realty Trust, Inc. Class A (ö) | | | 7,100 | | | | 126 | |
Prudential Financial, Inc. | | | 12,630 | | | | 764 | |
Public Storage (ö) | | | 2,590 | | | | 371 | |
Realty Income Corp. (ö) | | | 9,700 | | | | 382 | |
State Street Corp. | | | 31,840 | | | | 1,471 | |
Total System Services, Inc. | | | 11,450 | | | | 269 | |
Travelers Cos., Inc. (The) | | | 15,130 | | | | 973 | |
US Bancorp | | | 21,500 | | | | 692 | |
Visa, Inc. Class A | | | 17,100 | | | | 2,102 | |
Wells Fargo & Co. | | | 67,410 | | | | 2,254 | |
Western Union Co. (The) | | | 31,550 | | | | 580 | |
| | | | | | | | |
| | | | | | | 25,881 | |
| | | | | | | | |
| | |
| Health Care - 12.1% | | | | | | | | |
Abbott Laboratories | | | 8,670 | | | | 538 | |
Aetna, Inc. | | | 6,280 | | | | 277 | |
Alexion Pharmaceuticals, Inc. (Æ) | | | 3,490 | | | | 315 | |
Allergan, Inc. | | | 6,090 | | | | 585 | |
Baxter International, Inc. | | | 13,900 | | | | 770 | |
Biogen Idec, Inc. (Æ) | | | 1,960 | | | | 263 | |
Boston Scientific Corp. (Æ) | | | 43,230 | | | | 271 | |
Celgene Corp. (Æ) | | | 3,000 | | | | 219 | |
Cerner Corp. (Æ) | | | 12,150 | | | | 985 | |
Cigna Corp. | | | 24,260 | | | | 1,121 | |
Coventry Health Care, Inc. | | | 4,700 | | | | 141 | |
Covidien PLC | | | 16,160 | | | | 893 | |
CR Bard, Inc. | | | 3,390 | | | | 335 | |
Dentsply International, Inc. | | | 12,730 | | | | 523 | |
Eli Lilly & Co. | | | 11,170 | | | | 462 | |
Gilead Sciences, Inc. (Æ) | | | 7,290 | | | | 379 | |
Humana, Inc. | | | 3,790 | | | | 306 | |
Intuitive Surgical, Inc. (Æ) | | | 1,370 | | | | 792 | |
Johnson & Johnson | | | 25,560 | | | | 1,664 | |
McKesson Corp. | | | 8,450 | | | | 772 | |
Medtronic, Inc. | | | 15,200 | | | | 581 | |
Merck & Co., Inc. | | | 31,510 | | | | 1,236 | |
Mylan, Inc. (Æ) | | | 44,510 | | | | 966 | |
Novo Nordisk A/S - ADR | | | 5,790 | | | | 851 | |
Perrigo Co. | | | 7,520 | | | | 789 | |
Pfizer, Inc. | | | 189,880 | | | | 4,353 | |
Sanofi - ADR | | | 22,830 | | | | 872 | |
UnitedHealth Group, Inc. | | | 15,860 | | | | 891 | |
Valeant Pharmaceuticals International, Inc. (Æ) | | | 4,960 | | | | 276 | |
WellPoint, Inc. | | | 5,380 | | | | 365 | |
| | | | | | | | |
| | | | | | | 22,791 | |
| | | | | | | | |
|
| Materials and Processing - 4.1% | |
Air Products & Chemicals, Inc. | | | 2,200 | | | | 188 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Allegheny Technologies, Inc. | | | 10,000 | | | | 429 | |
Ashland, Inc. | | | 6,250 | | | | 412 | |
Commercial Metals Co. | | | 9,800 | | | | 145 | |
Ecolab, Inc. | | | 17,100 | | | | 1,088 | |
EI du Pont de Nemours & Co. | | | 9,000 | | | | 481 | |
Lennox International, Inc. | | | 2,090 | | | | 91 | |
LyondellBasell Industries NV Class A | | | 6,230 | | | | 260 | |
Masco Corp. | | | 9,010 | | | | 119 | |
MeadWestvaco Corp. | | | 5,580 | | | | 178 | |
Monsanto Co. | | | 36,690 | | | | 2,794 | |
Newmont Mining Corp. | | | 7,000 | | | | 334 | |
PPG Industries, Inc. | | | 3,590 | | | | 378 | |
Praxair, Inc. | | | 4,630 | | | | 536 | |
Sherwin-Williams Co. (The) | | | 1,240 | | | | 149 | |
Valspar Corp. | | | 2,690 | | | | 138 | |
| | | | | | | | |
| | | | | | | 7,720 | |
| | | | | | | | |
|
| Producer Durables - 10.7% | |
ABB, Ltd. - ADR (Æ) | | | 15,150 | | | | 286 | |
Accenture PLC Class A | | | 13,710 | | | | 891 | |
AGCO Corp. (Æ) | | | 2,890 | | | | 135 | |
Agilent Technologies, Inc. | | | 7,570 | | | | 319 | |
Air Lease Corp. Class A (Æ) | | | 5,290 | | | | 124 | |
Automatic Data Processing, Inc. | | | 19,180 | | | | 1,067 | |
Babcock & Wilcox Co. (The) (Æ) | | | 5,700 | | | | 140 | |
Boeing Co. (The) | | | 6,080 | | | | 467 | |
Caterpillar, Inc. | | | 11,530 | | | | 1,184 | |
CSX Corp. | | | 13,350 | | | | 298 | |
Cummins, Inc. | | | 9,180 | | | | 1,063 | |
Danone - ADR | | | 47,110 | | | | 662 | |
Deere & Co. | | | 6,510 | | | | 536 | |
Dover Corp. | | | 9,300 | | | | 583 | |
Eaton Corp. | | | 12,150 | | | | 585 | |
Emerson Electric Co. | | | 8,150 | | | | 428 | |
Expeditors International of Washington, Inc. | | | 2,850 | | | | 114 | |
FedEx Corp. | | | 9,630 | | | | 849 | |
Flowserve Corp. | | | 2,000 | | | | 230 | |
Fluor Corp. | | | 4,180 | | | | 241 | |
General Dynamics Corp. | | | 3,920 | | | | 265 | |
General Electric Co. | | | 120,450 | | | | 2,359 | |
Honeywell International, Inc. | | | 31,040 | | | | 1,884 | |
Ingersoll-Rand PLC | | | 10,400 | | | | 442 | |
Itron, Inc. (Æ) | | | 2,090 | | | | 85 | |
Joy Global, Inc. | | | 12,630 | | | | 894 | |
L-3 Communications Holdings, Inc. | | | 2,890 | | | | 213 | |
Lexmark International, Inc. Class A | | | 4,080 | | | | 123 | |
Navistar International Corp. (Æ) | | | 5,500 | | | | 187 | |
Norfolk Southern Corp. | | | 4,180 | | | | 305 | |
Northrop Grumman Corp. | | | 4,680 | | | | 296 | |
Republic Services, Inc. Class A | | | 7,000 | | | | 192 | |
Robert Half International, Inc. | | | 4,980 | | | | 148 | |
Ryder System, Inc. | | | 4,590 | | | | 224 | |
Shaw Group, Inc. (The) (Æ) | | | 6,800 | | | | 206 | |
SPX Corp. | | | 800 | | | | 61 | |
Textron, Inc. | | | 5,880 | | | | 157 | |
Tyco International, Ltd. | | | 6,914 | | | | 388 | |
Union Pacific Corp. | | | 5,760 | | | | 648 | |
| | | | |
| | 62 | | | Russell U.S. Large Cap Equity Fund |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
United Parcel Service, Inc. Class B | | | 6,300 | | | | 492 | |
URS Corp. | | | 6,790 | | | | 280 | |
Xerox Corp. | | | 23,650 | | | | 184 | |
| | | | | | | | |
| | | | | | | 20,235 | |
| | | | | | | | |
| | |
| Technology - 16.1% | | | | | | | | |
Apple, Inc. (Æ) | | | 8,700 | | | | 5,082 | |
Applied Materials, Inc. | | | 71,280 | | | | 855 | |
Avago Technologies, Ltd. | | | 8,030 | | | | 277 | |
BMC Software, Inc. (Æ) | | | 6,780 | | | | 280 | |
Broadcom Corp. Class A (Æ) | | | 17,520 | | | | 641 | |
Brocade Communications Systems, Inc. (Æ) | | | 7,570 | | | | 42 | |
Cadence Design Systems, Inc. (Æ) | | | 12,650 | | | | 148 | |
Ciena Corp. (Æ) | | | 2,590 | | | | 38 | |
Cisco Systems, Inc. | | | 127,250 | | | | 2,564 | |
Citrix Systems, Inc. (Æ) | | | 4,100 | | | | 351 | |
Cognizant Technology Solutions Corp. Class A (Æ) | | | 5,680 | | | | 416 | |
Computer Sciences Corp. | | | 6,970 | | | | 196 | |
Corning, Inc. | | | 26,500 | | | | 380 | |
Electronic Arts, Inc. (Æ) | | | 18,150 | | | | 279 | |
EMC Corp. (Æ) | | | 9,100 | | | | 257 | |
Gartner, Inc. (Æ) | | | 1,790 | | | | 78 | |
Google, Inc. Class A (Æ) | | | 3,690 | | | | 2,234 | |
Harris Corp. | | | 4,300 | | | | 196 | |
Hewlett-Packard Co. | | | 44,350 | | | | 1,099 | |
IAC/InterActiveCorp | | | 3,290 | | | | 158 | |
Intersil Corp. Class A | | | 8,200 | | | | 84 | |
LSI Corp. (Æ) | | | 57,120 | | | | 460 | |
Microsoft Corp. | | | 117,190 | | | | 3,752 | |
Motorola Solutions, Inc. | | | 15,130 | | | | 772 | |
QUALCOMM, Inc. | | | 35,490 | | | | 2,266 | |
Red Hat, Inc. (Æ) | | | 13,600 | | | | 811 | |
SAIC, Inc. | | | 22,300 | | | | 271 | |
Salesforce.com, Inc. (Æ) | | | 3,500 | | | | 545 | |
SAP AG - ADR | | | 7,540 | | | | 500 | |
Synopsys, Inc. (Æ) | | | 2,890 | | | | 87 | |
Tellabs, Inc. | | | 40,960 | | | | 154 | |
Teradata Corp. (Æ) | | | 4,630 | | | | 323 | |
Texas Instruments, Inc. | | | 68,910 | | | | 2,201 | |
VeriFone Systems, Inc. (Æ) | | | 5,800 | | | | 276 | |
VMware, Inc. Class A (Æ) | | | 3,090 | | | | 345 | |
Vodafone Group PLC - ADR | | | 62,830 | | | | 1,749 | |
Western Digital Corp. (Æ) | | | 8,080 | | | | 314 | |
| | | | | | | | |
| | | | | | | 30,481 | |
| | | | | | | | |
| | |
| Utilities - 4.5% | | | | | | | | |
Alliant Energy Corp. | | | 2,900 | | | | 131 | |
Ameren Corp. | | | 8,170 | | | | 268 | |
American Electric Power Co., Inc. | | | 7,200 | | | | 280 | |
AT&T, Inc. | | | 58,960 | | | | 1,939 | |
Atmos Energy Corp. | | | 2,200 | | | | 72 | |
DTE Energy Co. | | | 6,300 | | | | 355 | |
Entergy Corp. | | | 4,880 | | | | 320 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
MetroPCS Communications, Inc. (Æ) | | | 12,450 | | | | 91 | |
NextEra Energy, Inc. | | | 7,300 | | | | 470 | |
NiSource, Inc. | | | 9,260 | | | | 228 | |
Northeast Utilities | | | 5,700 | | | | 210 | |
NRG Energy, Inc. (Æ) | | | 14,800 | | | | 252 | |
ONEOK, Inc. | | | 4,300 | | | | 369 | |
PG&E Corp. | | | 15,100 | | | | 667 | |
Pinnacle West Capital Corp. | | | 6,490 | | | | 314 | |
PPL Corp. | | | 34,850 | | | | 953 | |
Public Service Enterprise Group, Inc. | | | 10,800 | | | | 336 | |
Telephone & Data Systems, Inc. | | | 6,200 | | | | 151 | |
US Cellular Corp. (Æ) | | | 1,200 | | | | 47 | |
Verizon Communications, Inc. | | | 9,650 | | | | 390 | |
Windstream Corp. | | | 50,700 | | | | 570 | |
| | | | | | | | |
| | | | | | | 8,413 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $164,697) | | | | | | | 171,308 | |
| | | | | | | | |
|
| Short-Term Investments - 8.2% | |
Russell U.S. Cash Management Fund | | | 15,524,361 | (¥) | | | 15,524 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $15,524) | | | | 15,524 | |
| | | | | | | | |
| |
Total Investments - 99.1%
(identified cost $180,221) | | | | 186,832 | |
| |
Other Assets and Liabilities,
Net - 0.9% | | | | 1,776 | |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 188,608 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Large Cap Equity Fund | | 63 |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | |
S&P 500 E-Mini Index Futures (CME) | | | 236 | | | USD | | | 16,444 | | | | 06/12 | | | | 191 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | | 191 | |
| | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 25,375 | | | $ | — | | | $ | — | | | $ | 25,375 | | | | 13 .5 | |
Consumer Staples | | | 13,328 | | | | — | | | | — | | | | 13,328 | | | | 7 .1 | |
Energy | | | 17,084 | | | | — | | | | — | | | | 17,084 | | | | 9 .1 | |
Financial Services | | | 25,881 | | | | — | | | | — | | | | 25,881 | | | | 13 .7 | |
Health Care | | | 22,791 | | | | — | | | | — | | | | 22,791 | | | | 12 .1 | |
Materials and Processing | | | 7,720 | | | | — | | | | — | | | | 7,720 | | | | 4 .1 | |
Producer Durables | | | 20,235 | | | | — | | | | — | | | | 20,235 | | | | 10 .7 | |
Technology | | | 30,481 | | | | — | | | | — | | | | 30,481 | | | | 16 .1 | |
Utilities | | | 8,413 | | | | — | | | | — | | | | 8,413 | | | | 4 .5 | |
Short-Term Investments | | | — | | | | 15,524 | | | | — | | | | 15,524 | | | | 8 .2 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 171,308 | | | | 15,524 | | | | — | | | | 186,832 | | | | 99 .1 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | 0 .9 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100 .0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 191 | | | | — | | | | — | | | | 191 | | | | 0 .1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 191 | | | $ | — | | | $ | — | | | $ | 191 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 64 | | | Russell U.S. Large Cap Equity Fund |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 191 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 397 | |
| | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | 191 | |
| | | | |
| * | 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 and 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. Large Cap Equity Fund | | 65 |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 180,221 | |
Investments, at market* | | | 186,832 | |
Cash (restricted) | | | 1,300 | |
Receivables: | | | | |
Dividends and interest | | | 151 | |
Dividends from affiliated Russell money market funds | | | 2 | |
Investments sold | | | 2,588 | |
Fund shares sold | | | 755 | |
Prepaid expenses | | | 32 | |
| | | | |
Total assets | | | 191,660 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 2,768 | |
Fund shares redeemed | | | 75 | |
Accrued fees to affiliates | | | 120 | |
Other accrued expenses | | | 30 | |
Daily variation margin on futures contracts | | | 59 | |
| | | | |
Total liabilities | | | 3,052 | |
| | | | |
| | | | |
Net Assets | | $ | 188,608 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 66 | | | Russell U.S. Large Cap Equity Fund |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 67 | |
Accumulated net realized gain (loss) | | | 1,190 | |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 6,611 | |
Futures contracts | | | 191 | |
Shares of beneficial interest | | | 180 | |
Additional paid-in capital | | | 180,369 | |
| | | | |
Net Assets | | $ | 188,608 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.48 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.12 | |
Class A — Net assets | | $ | 249,238 | |
Class A — Shares outstanding ($.01 par value) | | | 23,781 | |
Net asset value per share: Class C(a) | | $ | 10.47 | |
Class C — Net assets | | $ | 348,990 | |
Class C — Shares outstanding ($.01 par value) | | | 33,328 | |
Net asset value per share: Class S(a) | | $ | 10.48 | |
Class S — Net assets | | $ | 188,009,551 | |
Class S — Shares outstanding ($.01 par value) | | | 17,934,924 | |
Amounts in thousands | | | | |
| | | | |
* Investments in affiliates, Russell U.S. Cash Management Fund | | $ | 15,524 | |
(a) 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.
| | |
| Russell U.S. Large Cap Equity Fund | | 67 |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)*
| | | | |
| Amounts in thousands | | | |
| | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 679 | |
Dividends from affiliated Russell money market funds | | | 4 | |
| | | | |
Total investment income | | | 683 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 283 | |
Administrative fees | | | 20 | |
Custodian fees | | | 12 | |
Distribution fees - Class A | | | — | ** |
Distribution fees - Class C | | | 1 | |
Transfer agent fees - Class A | | | — | ** |
Transfer agent fees - Class C | | | — | ** |
Transfer agent fees - Class S | | | 73 | |
Professional fees | | | 22 | |
Registration fees | | | 31 | |
Shareholder servicing fees - Class C | | | — | ** |
Trustees’ fees | | | 5 | |
Printing fees | | | 18 | |
Offering Costs | | | 33 | |
Miscellaneous | | | 6 | |
| | | | |
Expenses before reductions | | | 504 | |
Expense reductions | | | (159 | ) |
| | | | |
Net expenses | | | 345 | |
| | | | |
Net investment income (loss) | | | 338 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 793 | |
Futures contracts | | | 397 | |
| | | | |
Net realized gain (loss) | | | 1,190 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 6,611 | |
Futures contracts | | | 191 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 6,802 | |
| | | | |
Net realized and unrealized gain (loss) | | | 7,992 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 8,330 | |
| | | | |
| * | For the period February 7, 2012 (commencement of operations) to April 30, 2012. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 68 | | | Russell U.S. Large Cap Equity Fund |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Statement of Changes in Net Assets
| | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited)* | |
| | | | |
| | | | |
Increase (Decrease) in Net Assets | | | | |
| |
Operations | | | | |
Net investment income (loss) | | $ | 338 | |
Net realized gain (loss) | | | 1,190 | |
Net change in unrealized appreciation (depreciation) | | | 6,802 | |
| | | | |
Net increase (decrease) in net assets from operations | | | 8,330 | |
| | | | |
| |
Distributions | | | | |
From net investment income | | | | |
Class A | | | — | ** |
Class C | | | — | ** |
Class S | | | (271 | ) |
| | | | |
Net decrease in net assets from distributions | | | (271 | ) |
| | | | |
| |
Share Transactions | | | | |
Net increase (decrease) in net assets from share transactions | | | 180,549 | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 188,608 | |
| |
Net Assets | | | | |
Beginning of period | | | — | |
| | | | |
End of period | | $ | 188,608 | |
| | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 67 | |
| * | For the period February 7, 2012 (commencement of operations) to April 30, 2012. |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Large Cap Equity Fund | | 69 |
Russell Investment Company
Russell U.S. Large Cap Equity Fund
Financial Highlights — For the Period Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2012(8) | | | 10.00 | | | | 0.01 | | | | 0.48 | | | | 0.49 | | | | (.01 | ) |
Class C | | | | | | | | | | | | | | | | | | | | |
April 30, 2012(8) | | | 10.00 | | | | — | (f) | | | 0.48 | | | | 0.48 | | | | (.01 | ) |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2012(8) | | | 10.00 | | | | 0.02 | | | | 0.48 | | | | 0.50 | | | | (.02 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 70 | | | Russell U.S. Large Cap Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.01 | ) | | | 10.48 | | | | 4.93 | | | | 249 | | | | 1.48 | | | | 1.10 | | | | .26 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.01 | ) | | | 10.47 | | | | 4.75 | | | | 349 | | | | 2.23 | | | | 1.85 | | | | (.09 | ) | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.02 | ) | | | 10.48 | | | | 4.95 | | | | 188,010 | | | | 1.24 | | | | .85 | | | | .39 | | | | 18 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Large Cap Equity Fund | | 71 |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Shareholder Expense Example — April 30, 2012 (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 February 7, 2012 to April 30, 2012.
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 | | | | | | | | |
February 7, 2012 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,025.30 | | | $ | 1,018.90 | |
Expenses Paid During Period* | | $ | 2.79 | | | $ | 6.02 | |
| * | Actual expenses are equal to the Fund’s annualized expense ratio of 1.20% (representing the 84-day period annualized), multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period since commencement of operations). Hypothetical expenses are equal to the Fund’s annualized expense ratio of 1.20% (representing the six-month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
February 7, 2012 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,023.40 | | | $ | 1,015.17 | |
Expenses Paid During Period* | | $ | 4.53 | | | $ | 9.77 | |
| * | Actual expenses are equal to the Fund’s annualized expense ratio of 1.95% (representing the 84-day period annualized), multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period since commencement of operations). Hypothetical expenses are equal to the Fund’s annualized expense ratio of 1.95% (representing the six-month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
February 7, 2012 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,025.60 | | | $ | 1,020.14 | |
Expenses Paid During Period* | | $ | 2.21 | | | $ | 4.77 | |
| * | Actual expenses are equal to the Fund’s annualized expense ratio of 0.95% (representing the 84-day period annualized), multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period since commencement of operations). Hypothetical 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 182/366 (to reflect the one-half year period). |
| | | | |
| | 72 | | | Russell U.S. Mid Cap Equity Fund |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 91.5% | |
| Consumer Discretionary - 14.7% | |
Abercrombie & Fitch Co. Class A | | | 14,530 | | | | 729 | |
AMC Networks, Inc. Class A (Æ) | | | 2,500 | | | | 106 | |
Arcos Dorados Holdings, Inc. Class A | | | 9,100 | | | | 163 | |
AutoZone, Inc. (Æ) | | | 1,340 | | | | 531 | |
Cablevision Systems Corp. Class A | | | 29,540 | | | | 438 | |
Carter’s, Inc. (Æ) | | | 8,365 | | | | 454 | |
Chipotle Mexican Grill, Inc. Class A (Æ) | | | 1,450 | | | | 601 | |
Choice Hotels International, Inc. | | | 3,100 | | | | 117 | |
DeVry, Inc. | | | 800 | | | | 26 | |
DSW, Inc. Class A | | | 7,990 | | | | 450 | |
Dunkin’ Brands Group, Inc. | | | 13,300 | | | | 431 | |
Federal-Mogul Corp. (Æ) | | | 2,400 | | | | 31 | |
GameStop Corp. Class A | | | 18,500 | | | | 421 | |
Gentex Corp. | | | 38,880 | | | | 854 | |
Goodyear Tire & Rubber Co. (The) (Æ) | | | 32,420 | | | | 356 | |
Group 1 Automotive, Inc. | | | 5,610 | | | | 325 | |
Harman International Industries, Inc. | | | 9,780 | | | | 485 | |
Hasbro, Inc. | | | 8,300 | | | | 305 | |
HomeAway, Inc. (Æ) | | | 19,140 | | | | 499 | |
International Game Technology | | | 29,200 | | | | 455 | |
Johnson Controls, Inc. | | | 11,800 | | | | 377 | |
LKQ Corp. (Æ) | | | 18,606 | | | | 622 | |
Marriott International, Inc. Class A | | | 7,200 | | | | 281 | |
McGraw-Hill Cos., Inc. (The) | | | 2,700 | | | | 133 | |
MDC Holdings, Inc. | | | 5,500 | | | | 155 | |
MercadoLibre, Inc. | | | 9,523 | | | | 921 | |
Newell Rubbermaid, Inc. | | | 9,000 | | | | 164 | |
O’Reilly Automotive, Inc. (Æ) | | | 4,850 | | | | 511 | |
Panera Bread Co. Class A (Æ) | | | 2,960 | | | | 467 | |
priceline.com, Inc. (Æ) | | | 2,695 | | | | 2,049 | |
Ralph Lauren Corp. Class A | | | 3,100 | | | | 534 | |
Scholastic Corp. | | | 3,700 | | | | 113 | |
Scripps Networks Interactive, Inc. Class A | | | 4,500 | | | | 226 | |
Stanley Black & Decker, Inc. | | | 4,200 | | | | 307 | |
Tupperware Brands Corp. | | | 7,070 | | | | 440 | |
Ulta Salon Cosmetics & Fragrance, Inc. | | | 5,580 | | | | 492 | |
Washington Post Co. (The) Class B | | | 300 | | | | 113 | |
Whirlpool Corp. | | | 10,790 | | | | 691 | |
Williams-Sonoma, Inc. | | | 11,800 | | | | 457 | |
| | | | | | | | |
| | | | | | | 16,830 | |
| | | | | | | | |
| | |
| Consumer Staples - 6.4% | | | | | | | | |
Bunge, Ltd. | | | 6,710 | | | | 433 | |
ConAgra Foods, Inc. | | | 17,600 | | | | 454 | |
Fresh Market, Inc. (The) (Æ) | | | 10,689 | | | | 547 | |
Herbalife, Ltd. | | | 21,326 | | | | 1,499 | |
Kellogg Co. | | | 9,200 | | | | 465 | |
Kroger Co. (The) | | | 13,520 | | | | 315 | |
Lorillard, Inc. | | | 5,360 | | | | 725 | |
Molson Coors Brewing Co. Class B | | | 12,800 | | | | 532 | |
Monster Beverage Corp. (Æ) | | | 9,220 | | | | 599 | |
Ralcorp Holdings, Inc. (Æ) | | | 6,030 | | | | 439 | |
Safeway, Inc. | | | 23,800 | | | | 484 | |
SUPERVALU, Inc. | | | 63,900 | | | | 380 | |
Tyson Foods, Inc. Class A | | | 24,860 | | | | 454 | |
| | | | | | | | |
| | | | | | | 7,326 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Energy - 7.6% | | | | | | | | |
Baker Hughes, Inc. | | | 19,900 | | | | 878 | |
Berry Petroleum Co. Class A | | | 7,500 | | | | 342 | |
CARBO Ceramics, Inc. | | | 12,576 | | | | 1,058 | |
Dresser-Rand Group, Inc. (Æ) | | | 8,470 | | | | 412 | |
EQT Corp. | | | 10,100 | | | | 503 | |
Exterran Holdings, Inc. (Æ) | | | 18,800 | | | | 254 | |
FMC Technologies, Inc. (Æ) | | | 20,180 | | | | 949 | |
Marathon Petroleum Corp. | | | 1,300 | | | | 54 | |
Murphy Oil Corp. | | | 9,040 | | | | 497 | |
Noble Energy, Inc. | | | 8,290 | | | | 823 | |
Patterson-UTI Energy, Inc. | | | 22,400 | | | | 362 | |
Peabody Energy Corp. | | | 11,000 | | | | 342 | |
Plains Exploration & Production Co. (Æ) | | | 11,100 | | | | 453 | |
QEP Resources, Inc. | | | 23,500 | | | | 724 | |
Range Resources Corp. | | | 8,700 | | | | 580 | |
SM Energy Co. | | | 6,280 | | | | 415 | |
| | | | | | | | |
| | | | | | | 8,646 | |
| | | | | | | | |
| | |
| Financial Services - 16.1% | | | | | | | | |
Affiliated Managers Group, Inc. (Æ) | | | 4,260 | | | | 484 | |
Alexandria Real Estate Equities, Inc. (ö) | | | 5,600 | | | | 420 | |
AllianceBernstein Holding, LP | | | 23,500 | | | | 331 | |
Allied World Assurance Co. Holdings AG | | | 6,650 | | | | 479 | |
Allstate Corp. (The) | | | 12,000 | | | | 400 | |
American Realty Capital Trust Inc. (Æ) | | | 28,400 | | | | 312 | |
Ameriprise Financial, Inc. | | | 2,800 | | | | 152 | |
Aon Corp. | | | 8,700 | | | | 451 | |
Assurant, Inc. | | | 10,840 | | | | 437 | |
Axis Capital Holdings, Ltd. | | | 13,500 | | | | 459 | |
BankUnited, Inc. | | | 4,460 | | | | 110 | |
BRE Properties, Inc. Class A (ö) | | | 9,300 | | | | 488 | |
Broadridge Financial Solutions, Inc. | | | 10,800 | | | | 251 | |
Comerica, Inc. | | | 9,900 | | | | 317 | |
Discover Financial Services | | | 18,940 | | | | 642 | |
Everest Re Group, Ltd. | | | 4,800 | | | | 476 | |
Extra Space Storage, Inc. (ö) | | | 14,730 | | | | 447 | |
FactSet Research Systems, Inc. | | | 11,096 | | | | 1,165 | |
Fifth Third Bancorp | | | 21,600 | | | | 307 | |
First American Financial Corp. | | | 11,800 | | | | 198 | |
FleetCor Technologies, Inc. (Æ) | | | 3,700 | | | | 146 | |
Green Dot Corp. Class A (Æ) | | | 5,160 | | | | 136 | |
Hancock Holding Co. | | | 8,300 | | | | 267 | |
Hanover Insurance Group, Inc. (The) | | | 21,360 | | | | 862 | |
Interactive Brokers Group, Inc. Class A | | | 11,090 | | | | 168 | |
IntercontinentalExchange, Inc. (Æ) | | | 2,900 | | | | 386 | |
KeyCorp | | | 62,100 | | | | 499 | |
Lazard, Ltd. Class A | | | 31,800 | | | | 875 | |
Markel Corp. (Æ) | | | 500 | | | | 220 | |
MarketAxess Holdings, Inc. | | | 1,900 | | | | 65 | |
MB Financial, Inc. | | | 15,499 | | | | 320 | |
Mid-America Apartment Communities,
Inc. (ö) | | | 7,100 | | | | 483 | |
MSCI, Inc. Class A (Æ) | | | 29,750 | | | | 1,090 | |
National Retail Properties, Inc. (ö) | | | 10,900 | | | | 298 | |
Old Republic International Corp. | | | 21,400 | | | | 213 | |
PartnerRe, Ltd. - ADR | | | 9,670 | | | | 673 | |
| | |
| Russell U.S. Mid Cap Equity Fund | | 73 |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
ProAssurance Corp. | | | 2,500 | | | | 220 | |
Public Storage (ö) | | | 2,810 | | | | 403 | |
Raymond James Financial, Inc. | | | 12,900 | | | | 472 | |
Regions Financial Corp. | | | 50,300 | | | | 339 | |
RLI Corp. | | | 1,700 | | | | 117 | |
Starwood Property Trust, Inc. (ö) | | | 15,200 | | | | 317 | |
SVB Financial Group (Æ) | | | 3,220 | | | | 206 | |
Total System Services, Inc. | | | 20,250 | | | | 476 | |
Validus Holdings, Ltd. | | | 13,870 | | | | 451 | |
Weyerhaeuser Co. (ö) | | | 14,900 | | | | 303 | |
White Mountains Insurance Group, Ltd. | | | 180 | | | | 94 | |
| | | | | | | | |
| | | | | | | 18,425 | |
| | | | | | | | |
|
| Health Care - 7.3% | |
Boston Scientific Corp. (Æ) | | | 88,180 | | | | 552 | |
Centene Corp. (Æ) | | | 6,400 | | | | 253 | |
Cigna Corp. | | | 20,500 | | | | 949 | |
CONMED Corp. | | | 2,800 | | | | 80 | |
Coventry Health Care, Inc. | | | 8,700 | | | | 261 | |
CR Bard, Inc. | | | 5,250 | | | | 520 | |
Gen-Probe, Inc. (Æ) | | | 6,370 | | | | 519 | |
Health Net, Inc. (Æ) | | | 8,100 | | | | 288 | |
HMS Holdings Corp. (Æ) | | | 2,802 | | | | 67 | |
Humana, Inc. | | | 6,900 | | | | 557 | |
Magellan Health Services, Inc. (Æ) | | | 3,950 | | | | 175 | |
Molina Healthcare, Inc. (Æ) | | | 8,660 | | | | 222 | |
Omnicare, Inc. | | | 11,300 | | | | 394 | |
Pharmacyclics, Inc. (Æ) | | | 1,200 | | | | 33 | |
St. Jude Medical, Inc. | | | 22,400 | | | | 868 | |
STERIS Corp. | | | 18,000 | | | | 565 | |
SXC Health Solutions Corp. (Æ) | | | 8,270 | | | | 749 | |
Teleflex, Inc. | | | 3,000 | | | | 188 | |
Warner Chilcott PLC Class A (Æ) | | | 26,860 | | | | 584 | |
WellCare Health Plans, Inc. (Æ) | | | 4,290 | | | | 262 | |
WellPoint, Inc. | | | 3,730 | | | | 253 | |
| | | | | | | | |
| | | | | | | 8,339 | |
| | | | | | | | |
|
| Materials and Processing - 7.7% | |
Air Products & Chemicals, Inc. | | | 1,900 | | | | 162 | |
Allegheny Technologies, Inc. | | | 8,450 | | | | 363 | |
Ashland, Inc. | | | 10,500 | | | | 691 | |
Cabot Corp. | | | 14,000 | | | | 604 | |
Carpenter Technology Corp. | | | 7,500 | | | | 417 | |
Celanese Corp. Class A | | | 11,300 | | | | 548 | |
Chemtura Corp. (Æ) | | | 6,700 | | | | 114 | |
Commercial Metals Co. | | | 26,440 | | | | 391 | |
Compass Minerals International, Inc. | | | 5,220 | | | | 399 | |
Ecolab, Inc. | | | 8,880 | | | | 566 | |
Interface, Inc. Class A | | | 15,400 | | | | 218 | |
Lennox International, Inc. | | | 11,310 | | | | 491 | |
Owens-Illinois, Inc. (Æ) | | | 11,900 | | | | 277 | |
PPG Industries, Inc. | | | 6,320 | | | | 665 | |
Rockwood Holdings, Inc. (Æ) | | | 8,300 | | | | 459 | |
Sealed Air Corp. | | | 28,100 | | | | 539 | |
Sherwin-Williams Co. (The) | | | 4,430 | | | | 533 | |
Silgan Holdings, Inc. | | | 3,000 | | | | 132 | |
Steel Dynamics, Inc. | | | 10,900 | | | | 139 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Timken Co. | | | 2,800 | | | | 158 | |
Valspar Corp. | | | 10,090 | | | | 516 | |
WR Grace & Co. (Æ) | | | 8,100 | | | | 483 | |
| | | | | | | | |
| | | | | | | 8,865 | |
| | | | | | | | |
|
| Producer Durables - 12.0% | |
AGCO Corp. (Æ) | | | 8,760 | | | | 408 | |
Agilent Technologies, Inc. | | | 11,070 | | | | 467 | |
Air Lease Corp. Class A (Æ) | | | 3,600 | | | | 85 | |
Alaska Air Group, Inc. (Æ) | | | 11,200 | | | | 379 | |
Allison Transmission Holdings, Inc. (Æ) | | | 6,200 | | | | 130 | |
Babcock & Wilcox Co. (The) (Æ) | | | 8,700 | | | | 214 | |
Booz Allen Hamilton Holding Corp. Class A | | | 4,000 | | | | 68 | |
Brink’s Co. (The) | | | 6,500 | | | | 165 | |
Corporate Executive Board Co. (The) | | | 1,500 | | | | 62 | |
Crane Co. | | | 5,460 | | | | 241 | |
Dover Corp. | | | 4,150 | | | | 260 | |
Eaton Corp. | | | 7,700 | | | | 371 | |
Expeditors International of Washington, Inc. | | | 3,800 | | | | 152 | |
Flowserve Corp. | | | 2,300 | | | | 264 | |
Gulfmark Offshore, Inc. Class A (Æ) | | | 3,390 | | | | 163 | |
Huntington Ingalls Industries, Inc. (Æ) | | | 1,900 | | | | 75 | |
IHS, Inc. Class A (Æ) | | | 11,357 | | | | 1,147 | |
Ingersoll-Rand PLC | | | 5,700 | | | | 242 | |
Itron, Inc. (Æ) | | | 10,590 | | | | 432 | |
Joy Global, Inc. | | | 4,500 | | | | 318 | |
KBR, Inc. | | | 13,000 | | | | 440 | |
Landstar System, Inc. | | | 6,600 | | | | 354 | |
Lexmark International, Inc. Class A | | | 11,870 | | | | 357 | |
Navistar International Corp. (Æ) | | | 10,800 | | | | 367 | |
Parker Hannifin Corp. | | | 2,650 | | | | 232 | |
Pentair, Inc. | | | 7,100 | | | | 308 | |
Rockwell Automation, Inc. | | | 3,200 | | | | 247 | |
Ryder System, Inc. | | | 8,080 | | | | 394 | |
Shaw Group, Inc. (The) (Æ) | | | 13,600 | | | | 412 | |
SPX Corp. | | | 6,160 | | | | 473 | |
Stericycle, Inc. (Æ) | | | 9,584 | | | | 830 | |
Textron, Inc. | | | 18,700 | | | | 498 | |
Tidewater, Inc. | | | 4,900 | | | | 270 | |
Trimble Navigation, Ltd. (Æ) | | | 20,610 | | | | 1,116 | |
URS Corp. | | | 10,860 | | | | 449 | |
UTi Worldwide, Inc. | | | 7,680 | | | | 128 | |
Wabtec Corp. | | | 5,580 | | | | 434 | |
WW Grainger, Inc. | | | 1,780 | | | | 370 | |
Xerox Corp. | | | 50,900 | | | | 396 | |
| | | | | | | | |
| | | | | | | 13,718 | |
| | | | | | | | |
| | |
| Technology - 14.0% | | | | | | | | |
Advanced Micro Devices, Inc. (Æ) | | | 47,800 | | | | 352 | |
Altera Corp. | | | 11,802 | | | | 420 | |
BMC Software, Inc. (Æ) | | | 4,020 | | | | 166 | |
Broadcom Corp. Class A (Æ) | | | 6,000 | | | | 220 | |
Brocade Communications Systems, Inc. (Æ) | | | 63,820 | | | | 354 | |
Cadence Design Systems, Inc. (Æ) | | | 39,460 | | | | 460 | |
Ciena Corp. (Æ) | | | 24,770 | | | | 367 | |
Citrix Systems, Inc. (Æ) | | | 15,350 | | | | 1,313 | |
| | | | |
| | 74 | | | Russell U.S. Mid Cap Equity Fund |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
CommVault Systems, Inc. (Æ) | | | 7,790 | | | | 406 | |
Computer Sciences Corp. | | | 16,290 | | | | 457 | |
Concur Technologies, Inc. (Æ) | | | 16,278 | | | | 921 | |
Corning, Inc. | | | 41,900 | | | | 601 | |
Electronic Arts, Inc. (Æ) | | | 26,950 | | | | 414 | |
Emulex Corp. (Æ) | | | 22,530 | | | | 196 | |
Gartner, Inc. (Æ) | | | 9,700 | | | | 425 | |
Harris Corp. | | | 6,400 | | | | 291 | |
IAC/InterActiveCorp | | | 9,470 | | | | 456 | |
Integrated Device Technology, Inc. (Æ) | | | 17,380 | | | | 118 | |
Intersil Corp. Class A | | | 79,800 | | | | 820 | |
LSI Corp. (Æ) | | | 57,120 | | | | 459 | |
Maxim Integrated Products, Inc. | | | 10,200 | | | | 302 | |
Mentor Graphics Corp. (Æ) | | | 11,460 | | | | 166 | |
Molex, Inc. | | | 12,000 | | | | 331 | |
Motorola Solutions, Inc. | | | 17,560 | | | | 896 | |
NVIDIA Corp. (Æ) | | | 32,120 | | | | 418 | |
OmniVision Technologies, Inc. (Æ) | | | 13,400 | | | | 247 | |
SAIC, Inc. | | | 24,500 | | | | 298 | |
Tech Data Corp. (Æ) | | | 6,700 | | | | 360 | |
Tellabs, Inc. | | | 88,010 | | | | 332 | |
Teradata Corp. (Æ) | | | 15,366 | | | | 1,071 | |
Tessera Technologies, Inc. | | | 6,400 | | | | 100 | |
Ultimate Software Group, Inc. (Æ) | | | 11,730 | | | | 905 | |
VeriFone Systems, Inc. (Æ) | | | 18,360 | | | | 875 | |
Western Digital Corp. (Æ) | | | 13,210 | | | | 513 | |
| | | | | | | | |
| | | | | | | 16,030 | |
| | | | | | | | |
| | |
| Utilities - 5.7% | | | | | | | | |
Ameren Corp. | | | 15,370 | | | | 504 | |
American Water Works Co., Inc. | | | 13,800 | | | | 473 | |
CenterPoint Energy, Inc. | | | 28,400 | | | | 574 | |
CenturyLink, Inc. | | | 17,900 | | | | 690 | |
DTE Energy Co. | | | 6,600 | | | | 372 | |
MetroPCS Communications, Inc. (Æ) | | | 44,920 | | | | 328 | |
National Fuel Gas Co. | | | 1,900 | | | | 90 | |
NRG Energy, Inc. (Æ) | | | 21,100 | | | | 359 | |
NV Energy, Inc. | | | 18,800 | | | | 313 | |
PG&E Corp. | | | 7,000 | | | | 309 | |
PPL Corp. | | | 22,500 | | | | 615 | |
Talisman Energy, Inc. | | | 39,500 | | | | 516 | |
Telephone & Data Systems, Inc. | | | 10,600 | | | | 257 | |
UGI Corp. | | | 16,000 | | | | 467 | |
US Cellular Corp. (Æ) | | | 1,900 | | | | 75 | |
Windstream Corp. | | | 54,300 | | | | 610 | |
| | | | | | | | |
| | | | | | | 6,552 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $102,361) | | | | | | | 104,731 | |
| | | | | | | | |
| |
| Short-Term Investments - 8.0% | | | | | |
Russell U.S. Cash Management Fund | | | 9,212,096 | (¥) | | | 9,212 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $9,212) | | | | | | | 9,212 | |
| | | | | | | | |
| | | | | | |
| | | | | Market
Value
$ | |
Total Investments - 99.5%
(identified cost $111,573) | | | 113,943 | |
| |
| Other Assets and Liabilities, Net - 0.5% | | | 579 | |
| | | | | | |
| | |
| Net Assets - 100.0% | | | | | 114,522 | |
| | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Mid Cap Equity Fund | | 75 |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | |
S&P Midcap 400 E-Mini Index Futures (CME) | | | 99 | | | USD | | | 9,797 | | | | 06/12 | | | | 85 | |
| | | | | | | | | | | | | | | | | | |
| |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | 85 | |
| | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 16,830 | | | $ | — | | | $ | — | | | $ | 16,830 | | | | 14.7 | |
Consumer Staples | | | 7,326 | | | | — | | | | — | | | | 7,326 | | | | 6.4 | |
Energy | | | 8,646 | | | | — | | | | — | | | | 8,646 | | | | 7.6 | |
Financial Services | | | 18,425 | | | | — | | | | — | | | | 18,425 | | | | 16.1 | |
Health Care | | | 8,339 | | | | — | | | | — | | | | 8,339 | | | | 7.3 | |
Materials and Processing | | | 8,865 | | | | — | | | | — | | | | 8,865 | | | | 7.7 | |
Producer Durables | | | 13,718 | | | | — | | | | — | | | | 13,718 | | | | 12.0 | |
Technology | | | 16,030 | | | | — | | | | — | | | | 16,030 | | | | 14.0 | |
Utilities | | | 6,552 | | | | — | | | | — | | | | 6,552 | | | | 5.7 | |
Short-Term Investments | | | — | | | | 9,212 | | | | — | | | | 9,212 | | | | 8.0 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 104,731 | | | | 9,212 | | | | — | | | | 113,943 | | | | 99.5 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | 0.5 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 85 | | | | — | | | | — | | | | 85 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 85 | | | $ | — | | | $ | — | | | $ | 85 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 76 | | | Russell U.S. Mid Cap Equity Fund |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 85 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 170 | |
| | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | 85 | |
| | | | |
| * | 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 and 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. Mid Cap Equity Fund | | 77 |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 111,573 | |
Investments, at market* | | | 113,943 | |
Cash (restricted) | | | 650 | |
Receivables: | | | | |
Dividends and interest | | | 37 | |
Dividends from affiliated Russell money market funds | | | 1 | |
Investments sold | | | 2,077 | |
Fund shares sold | | | 267 | |
Prepaid expenses | | | 46 | |
| | | | |
Total assets | | | 117,021 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 2,275 | |
Fund shares redeemed | | | 25 | |
Accrued fees to affiliates | | | 65 | |
Other accrued expenses | | | 53 | |
Daily variation margin on futures contracts | | | 81 | |
| | | | |
Total liabilities | | | 2,499 | |
| | | | |
| | | | |
Net Assets | | $ | 114,522 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 78 | | | Russell U.S. Mid Cap Equity Fund |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (47 | ) |
Accumulated net realized gain (loss) | | | 257 | |
Unrealized appreciation (depreciation) on: | | | | |
Investments. | | | 2,370 | |
Futures contracts | | | 85 | |
Shares of beneficial interest | | | 112 | |
Additional paid-in capital | | | 111,745 | |
| | | | |
Net Assets | | $ | 114,522 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.24 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 10.86 | |
Class A — Net assets | | $ | 249,025 | |
Class A — Shares outstanding ($.01 par value) | | | 24,329 | |
Net asset value per share: Class C(a) | | $ | 10.23 | |
Class C — Net assets | | $ | 150,499 | |
Class C — Shares outstanding ($.01 par value) | | | 14,715 | |
Net asset value per share: Class S(a) | | $ | 10.24 | |
Class S — Net assets | | $ | 114,122,142 | |
Class S — Shares outstanding ($.01 par value) | | | 11,146,178 | |
Amounts in thousands | | | | |
| | | | |
* Investments in affiliates, Russell U.S. Cash Management Fund. | | $ | 9,212 | |
(a) 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.
| | |
| Russell U.S. Mid Cap Equity Fund | | 79 |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)*
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 372 | |
Dividends from affiliated Russell money market funds | | | 3 | |
| | | | |
Total investment income | | | 375 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 207 | |
Administrative fees | | | 13 | |
Custodian fees | | | 11 | |
Distribution fees - Class C | | | — | ** |
Transfer agent fees - Class A | | | — | ** |
Transfer agent fees - Class C | | | — | ** |
Transfer agent fees - Class S | | | 47 | |
Professional fees | | | 15 | |
Registration fees | | | 25 | |
Shareholder servicing fees - Class C | | | — | ** |
Trustees’ fees | | | 1 | |
Printing fees | | | 4 | |
Offering Costs | | | 33 | |
Miscellaneous | | | 2 | |
| | | | |
Expenses before reductions | | | 358 | |
Expense reductions | | | (111 | ) |
| | | | |
Net expenses | | | 247 | |
| | | | |
Net investment income (loss) | | | 128 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments. | | | 87 | |
Futures contracts | | | 170 | |
| | | | |
Net realized gain (loss) | | | 257 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 2,370 | |
Futures contracts | | | 85 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 2,455 | |
| | | | |
Net realized and unrealized gain (loss) | | | 2,712 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 2,840 | |
| | | | |
| * | For the period February 7, 2012 (commencement of operations) to April 30, 2012. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 80 | | | Russell U.S. Mid Cap Equity Fund |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Statement of Changes in Net Assets
| | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited)* | |
| | | | |
Increase (Decrease) in Net Assets | | | | |
| |
Operations | | | | |
Net investment income (loss) | | $ | 128 | |
Net realized gain (loss) | | | 257 | |
Net change in unrealized appreciation (depreciation) | | | 2,455 | |
| | | | |
Net increase (decrease) in net assets from operations | | | 2,840 | |
| | | | |
| |
Distributions | | | | |
From net investment income | | | | |
Class A | | | — | ** |
Class C | | | — | ** |
Class S | | | (175 | ) |
| | | | |
Net decrease in net assets from distributions | | | (175 | ) |
| | | | |
| |
Share Transactions | | | | |
Net increase (decrease) in net assets from share transactions | | | 111,857 | |
| | | | |
Total Net Increase (Decrease) in Net Assets | | | 114,522 | |
| |
Net Assets | | | | |
Beginning of period | | | — | |
| | | | |
End of period | | $ | 114,522 | |
| | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (47 | ) |
| * | For the period February 7, 2012 (commencement of operations) to April 30, 2012. |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Mid Cap Equity Fund | | 81 |
Russell Investment Company
Russell U.S. Mid Cap Equity Fund
Financial Highlights — For the Period Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2012(8) | | | 10.00 | | | | — | (f) | | | .25 | | | | .25 | | | | (.01 | ) |
Class C | | | | | | | | | | | | | | | | | | | | |
April 30, 2012(8) | | | 10.00 | | | | (.01 | ) | | | .24 | | | | .23 | | | | — | (f) |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2012(8) | | | 10.00 | | | | .01 | | | | .25 | | | | .26 | | | | (.02 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 82 | | | Russell U.S. Mid Cap Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.01 | ) | | | 10.24 | | | | 2.53 | | | | 249 | | | | 1.65 | | | | 1.20 | | | | .17 | | | | 37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | (f) | | | 10.23 | | | | 2.34 | | | | 151 | | | | 2.38 | | | | 1.95 | | | | (.56 | ) | | | 37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.02 | ) | | | 10.24 | | | | 2.56 | | | | 114,122 | | | | 1.38 | | | | 0.95 | | | | .50 | | | | 37 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Mid Cap Equity Fund | | 83 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,132.40 | | | $ | 1,018.70 | |
Expenses Paid During Period* | | $ | 6.57 | | | $ | 6.22 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,128.05 | | | $ | 1,014.97 | |
Expenses Paid During Period* | | $ | 10.53 | | | $ | 9.97 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,132.78 | | | $ | 1,019.00 | |
Expenses Paid During Period* | | $ | 6.26 | | | $ | 5.92 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.18% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,133.73 | | | $ | 1,020.34 | |
Expenses Paid During Period* | | $ | 4.83 | | | $ | 4.57 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 84 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,133.72 | | | $ | 1,019.94 | |
Expenses Paid During Period* | | $ | 5.25 | | | $ | 4.97 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,134.43 | | | $ | 1,020.84 | |
Expenses Paid During Period* | | $ | 4.30 | | | $ | 4.07 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell U.S. Small Cap Equity Fund | | 85 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 96.8% | | | | | | | | |
| Consumer Discretionary - 15.2% | | | | | |
Aaron’s, Inc. Class A | | | 1,000 | | | | 27 | |
Abercrombie & Fitch Co. Class A | | | 27,620 | | | | 1,386 | |
Aeropostale, Inc. (Æ) | | | 17,400 | | | | 386 | |
AFC Enterprises, Inc. (Æ) | | | 46,300 | | | | 791 | |
Amerco, Inc. | | | 15,049 | | | | 1,512 | |
American Eagle Outfitters, Inc. | | | 93,790 | | | | 1,689 | |
America’s Car-Mart, Inc. (Æ) | | | 91,345 | | | | 4,196 | |
Ameristar Casinos, Inc. | | | 81,753 | | | | 1,470 | |
Arctic Cat, Inc. (Æ) | | | 108,179 | | | | 4,786 | |
Bally Technologies, Inc. (Æ) | | | 120,382 | | | | 5,845 | |
bebe stores inc | | | 95,890 | | | | 786 | |
Belo Corp. Class A | | | 197,995 | | | | 1,335 | |
Benihana, Inc. Class A | | | 38,800 | | | | 535 | |
BJ’s Restaurants, Inc. (Æ) | | | 90,371 | | | | 3,903 | |
Black Diamond, Inc. (Æ) | | | 63,380 | | | | 629 | |
Body Central Corp. (Æ)(Ñ) | | | 168,575 | | | | 5,120 | |
BorgWarner, Inc.(Æ) | | | 38,265 | | | | 3,024 | |
Boston Pizza Royalties Income Fund (Å) | | | 221,000 | | | | 4,087 | |
Bravo Brio Restaurant Group, Inc. (Æ) | | | 81,920 | | | | 1,655 | |
Brunswick Corp. | | | 36,576 | | | | 962 | |
Buffalo Wild Wings, Inc. (Æ) | | | 73,065 | | | | 6,127 | |
Build-A-Bear Workshop, Inc. Class A (Æ) | | | 4,682 | | | | 21 | |
Callaway Golf Co. (Ñ) | | | 571,630 | | | | 3,504 | |
Caribou Coffee Co., Inc. (Æ)(Ñ) | | | 262,424 | | | | 4,306 | |
Carmike Cinemas, Inc. (Æ) | | | 62,185 | | | | 829 | |
Carrols Restaurant Group, Inc. (Æ) | | | 44,170 | | | | 666 | |
Cato Corp. (The) Class A | | | 133,800 | | | | 3,724 | |
CEC Entertainment, Inc. | | | 75,600 | | | | 2,889 | |
Cenveo, Inc. (Æ)(Ñ) | | | 128,965 | | | | 369 | |
Charming Shoppes, Inc. (Æ) | | | 190,800 | | | | 1,126 | |
Chico’s FAS, Inc. | | | 8,180 | | | | 126 | |
Churchill Downs, Inc. | | | 8,000 | | | | 475 | |
Collective Brands, Inc. (Æ) | | | 67,000 | | | | 1,392 | |
Columbia Sportswear Co. (Ñ) | | | 68,667 | | | | 3,234 | |
Conn’s, Inc. (Æ)(Ñ) | | | 41,644 | | | | 681 | |
Cooper Tire & Rubber Co. | | | 283,410 | | | | 4,237 | |
Cost Plus, Inc. (Æ) | | | 43,215 | | | | 837 | |
Courier Corp. | | | 5,900 | | | | 61 | |
Cracker Barrel Old Country Store, Inc. | | | 26,600 | | | | 1,530 | |
Crocs, Inc. (Æ) | | | 283,695 | | | | 5,731 | |
CSS Industries, Inc. | | | 2,600 | | | | 50 | |
Dana Holding Corp. | | | 36,175 | | | | 529 | |
Digital Cinema Destinations Corp. Class A (Æ) | | | 100,000 | | | | 701 | |
Digital Domain Media Group, Inc. (Æ) | | | 14,618 | | | | 124 | |
Domino’s Pizza, Inc. | | | 49,800 | | | | 1,883 | |
Dorman Products, Inc. (Æ) | | | 12,930 | | | | 618 | |
DSW, Inc. Class A | | | 14,900 | | | | 838 | |
Einstein Noah Restaurant Group, Inc. (Å) | | | 150,700 | | | | 2,132 | |
Elizabeth Arden, Inc. (Æ) | | | 3,715 | | | | 145 | |
EW Scripps Co. Class A (Æ) | | | 33,100 | | | | 303 | |
ExactTarget, Inc. (Æ)(Ñ) | | | 74,708 | | | | 2,018 | |
Federal-Mogul Corp. (Æ) | | | 38,100 | | | | 493 | |
Finish Line, Inc. (The) Class A | | | 175,900 | | | | 3,916 | |
Francesca’s Holdings Corp. (Æ)(Ñ) | | | 158,276 | | | | 4,962 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Fred’s, Inc. Class A (Ñ) | | | 91,498 | | | | 1,310 | |
Fuel Systems Solutions, Inc. (Æ)(Ñ) | | | 62,741 | | | | 1,471 | |
GameStop Corp. Class A (Ñ) | | | 63,600 | | | | 1,448 | |
Gaylord Entertainment Co. (Æ) | | | 45,390 | | | | 1,429 | |
Genesco, Inc. (Æ) | | | 62,050 | | | | 4,654 | |
G-III Apparel Group, Ltd. (Æ) | | | 130,350 | | | | 3,500 | |
Gordmans Stores, Inc. (Æ) | | | 29,086 | | | | 618 | |
Group 1 Automotive, Inc. | | | 67,539 | | | | 3,909 | |
Harman International Industries, Inc. | | | 30,600 | | | | 1,517 | |
Harry Winston Diamond Corp. (Æ)(Ñ) | | | 72,889 | | | | 1,039 | |
HealthStream, Inc. (Æ) | | | 24,945 | | | | 572 | |
Helen of Troy, Ltd. (Æ) | | | 14,800 | | | | 512 | |
Hibbett Sports, Inc. (Æ) | | | 30,870 | | | | 1,844 | |
Hillenbrand, Inc. | | | 104,030 | | | | 2,178 | |
HomeAway, Inc. (Æ)(Ñ) | | | 36,974 | | | | 963 | |
Hot Topic, Inc. | | | 417,828 | | | | 4,095 | |
Imax Corp. (Æ) | | | 35,539 | | | | 852 | |
Interval Leisure Group, Inc. | | | 81,200 | | | | 1,403 | |
Isle of Capri Casinos, Inc. (Æ) | | | 163,237 | | | | 1,020 | |
Jack in the Box, Inc. (Æ) | | | 116,100 | | | | 2,638 | |
Jones Group, Inc. (The) | | | 416,720 | | | | 4,676 | |
Kenneth Cole Productions, Inc. Class A (Æ) | | | 75,530 | | | | 1,203 | |
LeapFrog Enterprises, Inc. Class A (Æ) | | | 171,407 | | | | 1,601 | |
Lennar Corp. Class B | | | 101,893 | | | | 2,306 | |
LIN TV Corp. Class A (Æ) | | | 267,685 | | | | 1,057 | |
Lincoln Educational Services Corp. (Ñ) | | | 59,814 | | | | 439 | |
Lithia Motors, Inc. Class A | | | 91,000 | | | | 2,442 | |
Liz Claiborne, Inc. (Æ)(Ñ) | | | 39,810 | | | | 533 | |
Marchex, Inc. Class A (Ñ) | | | 8,900 | | | | 31 | |
MarineMax, Inc. (Æ) | | | 51,165 | | | | 545 | |
Matthews International Corp. Class A | | | 52,138 | | | | 1,564 | |
McClatchy Co. (The) Class A (Æ)(Ñ) | | | 57,030 | | | | 155 | |
MDC Holdings, Inc. (Ñ) | | | 110,258 | | | | 3,099 | |
MDC Partners, Inc. Class A (Å) | | | 351,255 | | | | 3,625 | |
Men’s Wearhouse, Inc. (The) | | | 37,773 | | | | 1,399 | |
Meredith Corp. (Ñ) | | | 234,269 | | | | 6,754 | |
Movado Group, Inc. | | | 53,206 | | | | 1,508 | |
Multimedia Games Holding Co., Inc. (Æ) | | | 118,074 | | | | 1,341 | |
Orient-Express Hotels, Ltd. Class A (Æ) | | | 50,152 | | | | 536 | |
Oxford Industries, Inc. | | | 22,947 | | | | 1,101 | |
Papa John’s International, Inc. (Æ) | | | 19,300 | | | | 777 | |
Penn National Gaming, Inc. (Æ) | | | 38,217 | | | | 1,719 | |
PF Chang’s China Bistro, Inc. | | | 10,845 | | | | 430 | |
Pier 1 Imports, Inc. | | | 138,360 | | | | 2,377 | |
Pinnacle Entertainment, Inc. (Æ) | | | 133,000 | | | | 1,476 | |
Pizza Pizza Royalty Income Fund | | | 85,800 | | | | 871 | |
PVH Corp. | | | 4,400 | | | | 391 | |
Red Robin Gourmet Burgers, Inc. (Æ) | | | 42,195 | | | | 1,505 | |
Regis Corp. | | | 122,110 | | | | 2,241 | |
Rent-A-Center, Inc. Class A | | | 50,500 | | | | 1,728 | |
rue21 Inc.(Æ)(Ñ) | | | 50,929 | | | | 1,546 | |
Scholastic Corp. (Ñ) | | | 47,600 | | | | 1,454 | |
School Specialty, Inc. (Æ)(Ñ) | | | 19,832 | | | | 65 | |
Second Cup, Ltd. (The) | | | 47,300 | | | | 343 | |
Select Comfort Corp. (Æ) | | | 7,900 | | | | 228 | |
Shuffle Master, Inc. (Æ) | | | 255,584 | | | | 4,516 | |
Sinclair Broadcast Group, Inc. Class A | | | 151,295 | | | | 1,555 | |
| | | | |
| | 86 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Skechers U.S.A., Inc. Class A (Æ)(Ñ) | | | 140,490 | | | | 2,623 | |
Smith & Wesson Holding Corp. (Æ) | | | 262,486 | | | | 2,166 | |
Snap-on, Inc. | | | 31,375 | | | | 1,962 | |
Sotheby’s Class A | | | 47,180 | | | | 1,855 | |
Standard Motor Products, Inc. | | | 69,000 | | | | 1,040 | |
Steven Madden, Ltd. (Æ) | | | 47,610 | | | | 2,057 | |
Stewart Enterprises, Inc. Class A | | | 220,140 | | | | 1,391 | |
Sturm Ruger & Co., Inc. | | | 10,330 | | | | 590 | |
Superior Industries International, Inc. | | | 64,292 | | | | 1,100 | |
Teavana Holdings, Inc. (Æ)(Ñ) | | | 114,537 | | | | 2,393 | |
Thor Industries, Inc. | | | 23,100 | | | | 782 | |
Ulta Salon Cosmetics & Fragrance, Inc. | | | 30,702 | | | | 2,707 | |
Under Armour, Inc. Class A (Æ) | | | 18,515 | | | | 1,813 | |
ValueClick, Inc. (Æ) | | | 155,025 | | | | 3,283 | |
VOXX International Corp. Class A (Æ) | | | 58,580 | | | | 743 | |
Warnaco Group, Inc. (The)(Æ) | | | 9,750 | | | | 516 | |
WMS Industries, Inc. (Æ) | | | 52,810 | | | | 1,294 | |
Wolverine World Wide, Inc. | | | 53,970 | | | | 2,264 | |
| | | | | | | | |
| | | | | | | 231,389 | |
| | | | | | | | |
| | |
| Consumer Staples - 2.5% | | | | | | | | |
Andersons, Inc. (The) | | | 41,338 | | | | 2,084 | |
Calavo Growers, Inc. (Ñ) | | | 20,100 | | | | 577 | |
Casey’s General Stores, Inc. | | | 88,100 | | | | 4,965 | |
Chefs’ Warehouse Holdings, Inc. (Æ) | | | 30,030 | | | | 726 | |
Core-Mark Holding Co., Inc. | | | 12,445 | | | | 480 | |
Corn Products International, Inc. | | | 26,000 | | | | 1,484 | |
Dean Foods Co. (Æ) | | | 140,400 | | | | 1,724 | |
Flowers Foods, Inc. | | | 142,200 | | | | 3,050 | |
Fresh Del Monte Produce, Inc. | | | 145,504 | | | | 3,371 | |
Fresh Market, Inc. (The) (Æ)(Ñ) | | | 41,602 | | | | 2,129 | |
Imperial Sugar Co. (Ñ) | | | 27,246 | | | | 110 | |
Nash Finch Co. | | | 18,198 | | | | 457 | |
Pantry, Inc. (The) (Æ) | | | 31,100 | | | | 397 | |
Schiff Nutrition International, Inc. (Æ) | | | 31,555 | | | | 519 | |
Seneca Foods Corp. Class A (Æ) | | | 2,847 | | | | 66 | |
Smart Balance, Inc. (Æ) | | | 753,564 | | | | 4,446 | |
Spartan Stores, Inc. | | | 6,600 | | | | 120 | |
SUPERVALU, Inc. (Ñ) | | | 214,973 | | | | 1,277 | |
Susser Holdings Corp. (Æ) | | | 45,685 | | | | 1,219 | |
TreeHouse Foods, Inc. (Æ)(Ñ) | | | 135,650 | | | | 7,801 | |
Tumi Holdings, Inc. (Æ) | | | 30,000 | | | | 764 | |
| | | | | | | | |
| | | | | | | 37,766 | |
| | | | | | | | |
| | |
| Energy - 4.6% | | | | | | | | |
Abraxas Petroleum Corp. (Æ)(Ñ) | | | 65,000 | | | | 194 | |
Approach Resources, Inc. Class A (Æ)(Ñ) | | | 120,990 | | | | 4,341 | |
Atwood Oceanics, Inc. (Æ) | | | 9,500 | | | | 421 | |
Berry Petroleum Co. Class A | | | 45,901 | | | | 2,091 | |
Bonanza Creek Energy, Inc. (Æ) | | | 31,705 | | | | 697 | |
BPZ Resources, Inc. (Æ)(Ñ) | | | 132,360 | | | | 536 | |
Cal Dive International, Inc. (Æ) | | | 886,298 | | | | 3,430 | |
CARBO Ceramics, Inc. (Ñ) | | | 24,620 | | | | 2,070 | |
Carrizo Oil & Gas, Inc. (Æ) | | | 110,947 | | | | 3,111 | |
Cloud Peak Energy, Inc. (Æ) | | | 16,904 | | | | 260 | |
Comstock Resources, Inc. (Æ) | | | 11,725 | | | | 207 | |
Crimson Exploration, Inc. (Æ) | | | 102,397 | | | | 558 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Dawson Geophysical Co. (Æ) | | | 34,253 | | | | 920 | |
Delek US Holdings, Inc. | | | 113,669 | | | | 1,853 | |
Exterran Holdings, Inc. (Æ) | | | 85,660 | | | | 1,157 | |
Flotek Industries, Inc. (Æ)(Ñ) | | | 37,285 | | | | 509 | |
GeoResources, Inc. (Æ) | | | 13,837 | | | | 522 | |
Goodrich Petroleum Corp. (Æ) | | | 12,220 | | | | 205 | |
Gulfport Energy Corp. (Æ) | | | 36,148 | | | | 947 | |
Helix Energy Solutions Group, Inc. (Æ) | | | 14,200 | | | | 290 | |
Hercules Offshore, Inc. (Æ) | | | 431,506 | | | | 2,192 | |
Hornbeck Offshore Services, Inc. Class A (Æ) | | | 44,745 | | | | 1,863 | |
Key Energy Services, Inc. (Æ) | | | 86,372 | | | | 1,093 | |
Kodiak Oil & Gas Corp. (Æ)(Ñ) | | | 136,568 | | | | 1,209 | |
Lufkin Industries, Inc. | | | 39,783 | | | | 3,057 | |
Magnum Hunter Resources
Corp. (Æ)(Ñ) | | | 119,907 | | | | 745 | |
Mitcham Industries, Inc. (Æ) | | | 22,285 | | | | 529 | |
Nabors Industries, Ltd. (Æ) | | | 90,650 | | | | 1,509 | |
Newpark Resources, Inc. (Æ) | | | 301,128 | | | | 1,915 | |
Northern Oil and Gas, Inc. (Æ)(Ñ) | | | 57,207 | | | | 1,112 | |
Oasis Petroleum, Inc. (Æ) | | | 22,025 | | | | 728 | |
OYO Geospace Corp. (Æ) | | | 5,455 | | | | 628 | |
Pacific Drilling SA (Æ) | | | 157,570 | | | | 1,565 | |
Parker Drilling Co. (Æ) | | | 80,700 | | | | 417 | |
Patterson-UTI Energy, Inc. | | | 163,088 | | | | 2,637 | |
Penn Virginia Corp. | | | 152,529 | | | | 781 | |
Petroquest Energy, Inc. (Æ)(Ñ) | | | 424,425 | | | | 2,564 | |
Pioneer Drilling Co. (Æ) | | | 90,700 | | | | 715 | |
Plains Exploration & Production Co. (Æ) | | | 52,000 | | | | 2,124 | |
REX American Resources
Corp. (Æ)(��) | | | 10,100 | | | | 280 | |
Rosetta Resources, Inc. (Æ) | | | 61,830 | | | | 3,108 | |
Rowan Cos., Inc. (Æ) | | | 69,345 | | | | 2,394 | |
Sanchez Energy Corp. (Æ)(Ñ) | | | 23,420 | | | | 568 | |
SM Energy Co. | | | 22,600 | | | | 1,494 | |
Stone Energy Corp. (Æ) | | | 40,100 | | | | 1,125 | |
Superior Energy Services, Inc. (Æ) | | | 122,700 | | | | 3,303 | |
TETRA Technologies, Inc. (Æ) | | | 117,554 | | | | 1,024 | |
TGC Industries, Inc. (Æ) | | | 54,842 | | | | 626 | |
Triangle Petroleum Corp. (Æ)(Ñ) | | | 27,500 | | | | 179 | |
Unit Corp. (Æ) | | | 65,713 | | | | 2,776 | |
USEC, Inc. (Æ)(Ñ) | | | 32,267 | | | | 27 | |
Vaalco Energy, Inc. (Æ) | | | 67,015 | | | | 608 | |
W&T Offshore, Inc. | | | 53,510 | | | | 1,058 | |
Western Refining, Inc. | | | 35,871 | | | | 683 | |
| | | | | | | | |
| | | | | | | 70,955 | |
| | | | | | | | |
| | |
| Financial Services - 22.1% | | | | | | | | |
1st Source Corp. | | | 18,200 | | | | 413 | |
Affiliated Managers Group, Inc. (Æ) | | | 7,070 | | | | 803 | |
AG Mortgage Investment Trust, Inc. | | | 92,900 | | | | 1,839 | |
Allied World Assurance Co. Holdings AG (Ñ) | | | 32,000 | | | | 2,303 | |
American Assets Trust, Inc. (ö) | | | 54,643 | | | | 1,285 | |
American Campus Communities, Inc. (ö) | | | 19,400 | | | | 862 | |
American Capital Mortgage Investment Corp. | | | 59,900 | | | | 1,362 | |
American Equity Investment Life Holding Co. (Ñ) | | | 300,000 | | | | 3,678 | |
| | |
| Russell U.S. Small Cap Equity Fund | | 87 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
American Financial Group, Inc. | | | 11,300 | | | | 440 | |
Ameriprise Financial, Inc. | | | 35,761 | | | | 1,939 | |
Anworth Mortgage Asset Corp. (ö) | | | 368,640 | | | | 2,485 | |
Apollo Residential Mortgage, Inc. | | | 145,390 | | | | 2,639 | |
Arch Capital Group, Ltd. (Æ) | | | 36,100 | | | | 1,418 | |
Ares Capital Corp. | | | 71,692 | | | | 1,150 | |
Argo Group International Holdings, Ltd. | | | 123,545 | | | | 3,566 | |
Arlington Asset Investment Corp. Class A (Ñ) | | | 7,993 | | | | 188 | |
Ashford Hospitality Trust, Inc. (ö) | | | 31,100 | | | | 266 | |
Aspen Insurance Holdings, Ltd. | | | 24,600 | | | | 697 | |
Associated Banc-Corp. | | | 25,000 | | | | 333 | |
Assurant, Inc. | | | 55,700 | | | | 2,247 | |
Assured Guaranty, Ltd. | | | 35,800 | | | | 508 | |
Astoria Financial Corp. (Ñ) | | | 155,580 | | | | 1,508 | |
Axis Capital Holdings, Ltd. | | | 30,300 | | | | 1,031 | |
Banco Latinoamericano de Comercio Exterior SA Class E | | | 126,830 | | | | 2,644 | |
Bancorp, Inc. (Æ) | | | 43,800 | | | | 450 | |
Bank of the Ozarks, Inc. | | | 146,000 | | | | 4,511 | |
BankUnited, Inc. | | | 33,200 | | | | 817 | |
Banner Corp. | | | 27,100 | | | | 595 | |
Berkshire Hills Bancorp, Inc. | | | 16,000 | | | | 363 | |
BioMed Realty Trust, Inc. Class A (ö) | | | 259,670 | | | | 5,147 | |
BOK Financial Corp. | | | 6,000 | | | | 342 | |
Boston Private Financial Holdings, Inc. | | | 259,098 | | | | 2,415 | |
Brookline Bancorp, Inc. | | | 278,217 | | | | 2,498 | |
Camden Property Trust (ö) | | | 21,309 | | | | 1,442 | |
Capitol Federal Financial, Inc. | | | 294,936 | | | | 3,483 | |
CapLease, Inc. (ö) | | | 1,036,137 | | | | 4,300 | |
Cash America International, Inc. | | | 30,900 | | | | 1,445 | |
Central Pacific Financial Corp. (Æ) | | | 25,903 | | | | 368 | |
Chesapeake Lodging Trust (ö) | | | 103,470 | | | | 1,873 | |
Citizens Republic Bancorp, Inc. (Æ) | | | 59,996 | | | | 1,012 | |
City National Corp. | | | 31,700 | | | | 1,688 | |
CNO Financial Group, Inc. | | | 579,600 | | | | 4,214 | |
Cohen & Steers, Inc. (Ñ) | | | 48,695 | | | | 1,716 | |
Colonial Properties Trust (ö) | | | 36,963 | | | | 827 | |
Comerica, Inc. | | | 57,374 | | | | 1,837 | |
Community Bank System, Inc. | | | 54,199 | | | | 1,524 | |
Community Trust Bancorp, Inc. (Ñ) | | | 8,000 | | | | 256 | |
Coresite Realty Corp. Class A (ö) | | | 30,310 | | | | 755 | |
CreXus Investment Corp. (Ñ)(ö) | | | 41,100 | | | | 431 | |
DFC Global Corp. (Æ) | | | 56,456 | | | | 987 | |
DHT Holdings, Inc. (Ñ) | | | 438 | | | | — | |
Diamond Hill Investment Group, Inc. (Å) | | | 22,156 | | | | 1,681 | |
DiamondRock Hospitality Co. (ö) | | | 215,180 | | | | 2,287 | |
Dime Community Bancshares, Inc. | | | 65,280 | | | | 905 | |
DuPont Fabros Technology, Inc. (Ñ)(ö) | | | 92,100 | | | | 2,501 | |
Eagle Bancorp, Inc. (Æ) | | | 30,285 | | | | 539 | |
Endurance Specialty Holdings, Ltd. | | | 2,700 | | | | 109 | |
Entertainment Properties Trust (ö) | | | 25,400 | | | | 1,219 | |
Evercore Partners, Inc. Class A | | | 217,300 | | | | 5,743 | |
Everest Re Group, Ltd. | | | 22,700 | | | | 2,250 | |
Extra Space Storage, Inc. (ö) | | | 60,800 | | | | 1,845 | |
Ezcorp, Inc. Class A (Æ) | | | 155,500 | | | | 4,166 | |
Fair Isaac Corp. | | | 66,900 | | | | 2,870 | |
FelCor Lodging Trust, Inc. (Æ)(ö) | | | 213,708 | | | | 902 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Financial Engines, Inc. (Æ) | | | 39,680 | | | | 906 | |
First American Financial Corp. | | | 283,177 | | | | 4,743 | |
First Community Bancshares, Inc. | | | 3,484 | | | | 47 | |
First Connecticut Bancorp, Inc. | | | 13,600 | | | | 179 | |
First Financial Bankshares, Inc. (Ñ) | | | 80,564 | | | | 2,726 | |
First Horizon National Corp. | | | 87,792 | | | | 806 | |
First Industrial Realty Trust, Inc. (Æ)(ö) | | | 44,800 | | | | 553 | |
First Interstate Bancsystem, Inc. Class A | | | 6,000 | | | | 85 | |
First Merchants Corp. | | | 46,810 | | | | 577 | |
FirstMerit Corp. | | | 41,500 | | | | 697 | |
Flagstone Reinsurance Holdings SA | | | 416,324 | | | | 3,122 | |
FNB Corp. | | | 261,150 | | | | 2,964 | |
Forestar Group, Inc. (Æ) | | | 150,247 | | | | 2,311 | |
Franklin Street Properties Corp. (ö) | | | 276,295 | | | | 2,782 | |
Fulton Financial Corp. | | | 133,400 | | | | 1,399 | |
FXCM, Inc. Class A (Ñ) | | | 56,900 | | | | 659 | |
GFI Group, Inc. | | | 24,569 | | | | 81 | |
Global Cash Access Holdings, Inc. (Æ) | | | 916,112 | | | | 7,741 | |
Greenhill & Co., Inc. (Ñ) | | | 97,520 | | | | 3,789 | |
GSV Capital Corp. (Æ)(Ñ) | | | 73,170 | | | | 1,253 | |
Hancock Holding Co. | | | 44,268 | | | | 1,425 | |
Hanmi Financial Corp. Class A (Æ) | | | 35,683 | | | | 372 | |
Hanover Insurance Group, Inc. (The) | | | 55,460 | | | | 2,238 | |
Hatteras Financial Corp. (ö) | | | 22,135 | | | | 645 | |
Healthcare Realty Trust, Inc. (ö) | | | 235,005 | | | | 5,048 | |
Heartland Payment Systems, Inc. | | | 9,600 | | | | 293 | |
Hercules Technology Growth Capital, Inc. | | | 286,950 | | | | 3,274 | |
Hersha Hospitality Trust Class A (ö) | | | 185,400 | | | | 1,066 | |
HFF, Inc. Class A (Æ) | | | 38,195 | | | | 624 | |
Home BancShares, Inc. | | | 119,880 | | | | 3,493 | |
Home Properties, Inc. (ö) | | | 37,800 | | | | 2,308 | |
Horace Mann Educators Corp. | | | 91,205 | | | | 1,601 | |
Hospitality Properties Trust (ö) | | | 161,887 | | | | 4,465 | |
Iberiabank Corp. | | | 63,469 | | | | 3,241 | |
Infinity Property & Casualty Corp. | | | 49,659 | | | | 2,652 | |
Interactive Brokers Group, Inc. Class A | | | 102,400 | | | | 1,553 | |
International. FCStone, Inc. (Æ) | | | 2,100 | | | | 45 | |
Invesco Mortgage Capital, Inc. (ö) | | | 24,000 | | | | 423 | |
Investment Technology Group, Inc. (Æ) | | | 84,800 | | | | 865 | |
Investors Real Estate Trust (Ñ)(ö) | | | 20,401 | | | | 147 | |
Jack Henry & Associates, Inc. | | | 35,700 | | | | 1,212 | |
KBW, Inc. (Ñ) | | | 393,509 | | | | 6,705 | |
KeyCorp | | | 300,290 | | | | 2,414 | |
Kite Realty Group Trust (ö) | | | 24,900 | | | | 127 | |
Knight Capital Group, Inc. Class A (Æ) | | | 261,352 | | | | 3,434 | |
Kohlberg Capital Corp. | | | 32,717 | | | | 202 | |
Lakeland Financial Corp. | | | 32,853 | | | | 856 | |
LaSalle Hotel Properties (ö) | | | 139,380 | | | | 4,099 | |
Liberty Property Trust (ö) | | | 50,300 | | | | 1,833 | |
Mack-Cali Realty Corp. (ö) | | | 63,100 | | | | 1,812 | |
Maiden Holdings, Ltd. | | | 97,525 | | | | 809 | |
Manning & Napier, Inc. Class A | | | 180,800 | | | | 2,622 | |
MarketAxess Holdings, Inc. | | | 104,220 | | | | 3,576 | |
Medical Properties Trust, Inc. (ö) | | | 263,590 | | | | 2,472 | |
Medley Capital Corp. | | | 2,200 | | | | 25 | |
MFA Financial, Inc. (ö) | | | 42,400 | | | | 313 | |
MI Developments, Inc. | | | 115,300 | | | | 4,069 | |
| | | | |
| | 88 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Mid-America Apartment Communities, Inc. (ö) | | | 34,600 | | | | 2,355 | |
MoneyGram International, Inc. (Æ) | | | 161,234 | | | | 2,715 | |
Montpelier Re Holdings, Ltd. | | | 30,800 | | | | 632 | |
Nelnet, Inc. Class A | | | 84,200 | | | | 2,174 | |
New Mountain Finance Corp. | | | 9,100 | | | | 123 | |
NorthStar Realty Finance
Corp. (Ñ)(ö) | | | 97,550 | | | | 556 | |
Ocwen Financial Corp. Class A (Æ) | | | 24,000 | | | | 358 | |
OmniAmerican Bancorp, Inc. (Æ)(Ñ) | | | 14,300 | | | | 287 | |
One Liberty Properties, Inc. (ö) | | | 6,900 | | | | 131 | |
Park Sterling Corp. (Æ) | | | 326,140 | | | | 1,536 | |
Parkway Properties, Inc. (ö) | | | 18,800 | | | | 186 | |
Pebblebrook Hotel Trust (ö) | | | 38,520 | | | | 928 | |
PennantPark Investment Corp. | | | 104,279 | | | | 1,090 | |
Pennsylvania Real Estate Investment Trust (ö) | | | 24,200 | | | | 341 | |
PennyMac Mortgage Investment Trust (ö) | | | 144,800 | | | | 2,938 | |
Peoples Bancorp, Inc. | | | 5,000 | | | | 92 | |
Piper Jaffray Cos. (Æ) | | | 91,512 | | | | 2,219 | |
Portfolio Recovery Associates, Inc. (Æ) | | | 13,493 | | | | 929 | |
Post Properties, Inc. (ö) | | | 29,500 | | | | 1,437 | |
Potlatch Corp. (Ñ)(ö) | | | 165,030 | | | | 5,165 | |
PrivateBancorp, Inc. Class A | | | 140,525 | | | | 2,210 | |
ProAssurance Corp. | | | 33,270 | | | | 2,931 | |
Prosperity Bancshares, Inc. (Ñ) | | | 109,270 | | | | 5,097 | |
Protective Life Corp. | | | 82,171 | | | | 2,404 | |
PS Business Parks, Inc. (ö) | | | 63,400 | | | | 4,327 | |
Raymond James Financial, Inc. | | | 33,689 | | | | 1,234 | |
Regency Centers Corp. (ö) | | | 12,200 | | | | 549 | |
Reinsurance Group of America, Inc. Class A | | | 29,000 | | | | 1,686 | |
Republic Bancorp, Inc. Class A (Ñ) | | | 10,800 | | | | 254 | |
Resource Capital Corp. (Ñ)(ö) | | | 139,920 | | | | 756 | |
RLI Corp. | | | 10,800 | | | | 744 | |
Sabra Health Care REIT, Inc. (ö) | | | 25,500 | | | | 427 | |
SCBT Financial Corp. | | | 1,200 | | | | 41 | |
Selective Insurance Group, Inc. | | | 188,014 | | | | 3,288 | |
Signature Bank NY (Æ) | | | 117,410 | | | | 7,713 | |
Southside Bancshares, Inc. | | | 32,130 | | | | 655 | |
Southwest Bancorp, Inc. (Æ) | | | 3,900 | | | | 35 | |
State Auto Financial Corp. | | | 3,900 | | | | 56 | |
State Bank Financial Corp. (Æ) | | | 43,300 | | | | 747 | |
StellarOne Corp. | | | 179,158 | | | | 2,241 | |
Sterling Bancorp Class N | | | 170,502 | | | | 1,621 | |
Stewart Information Services Corp. (Ñ) | | | 36,256 | | | | 534 | |
Strategic Hotels & Resorts,
Inc. (Æ)(ö) | | | 101,700 | | | | 693 | |
Sunstone Hotel Investors, Inc. (Æ)(ö) | | | 121,700 | | | | 1,241 | |
SVB Financial Group (Æ) | | | 143,584 | | | | 9,202 | |
SWS Group, Inc. (Æ) | | | 9,900 | | | | 56 | |
Symetra Financial Corp. | | | 27,000 | | | | 328 | |
Synovus Financial Corp. | | | 751,108 | | | | 1,577 | |
Territorial Bancorp, Inc. | | | 10,162 | | | | 221 | |
Texas Capital Bancshares, Inc. (Æ) | | | 151,859 | | | | 5,727 | |
THL Credit, Inc. | | | 8,100 | | | | 102 | |
TrustCo Bank Corp. NY | | | 62,148 | | | | 340 | |
UMB Financial Corp. | | | 67,622 | | | | 3,249 | |
Umpqua Holdings Corp. | | | 222,525 | | | | 2,946 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
United Bankshares, Inc. (Ñ) | | | 70,400 | | | | 1,861 | |
United Financial Bancorp, Inc. | | | 9,100 | | | | 146 | |
United Fire Group, Inc. (Æ) | | | 7,560 | | | | 130 | |
Universal Health Realty Income Trust (ö) | | | 1,300 | | | | 53 | |
Validus Holdings, Ltd. | | | 56,000 | | | | 1,820 | |
Valley National Bancorp (Ñ) | | | 166,700 | | | | 2,100 | |
Virtus Investment Partners, Inc. (Æ) | | | 55,869 | | | | 4,715 | |
Washington Banking Co. | | | 7,053 | | | | 98 | |
Washington Federal, Inc. | | | 289,004 | | | | 5,069 | |
Webster Financial Corp. | | | 181,300 | | | | 4,121 | |
West Coast Bancorp (Æ) | | | 30,228 | | | | 591 | |
Western Alliance Bancorp (Æ) | | | 115,444 | | | | 1,014 | |
Wilshire Bancorp, Inc. (Æ) | | | 46,901 | | | | 251 | |
WSFS Financial Corp. | | | 16,599 | | | | 662 | |
XL Group PLC Class A | | | 172,000 | | | | 3,700 | |
Zions Bancorporation | | | 30,600 | | | | 624 | |
| | | | | | | | |
| | | | | | | 336,074 | |
| | | | | | | | |
| | |
| Health Care - 10.4% | | | | | | | | |
Abaxis, Inc. (Æ) | | | 18,606 | | | | 663 | |
Abiomed, Inc. (Æ)(Ñ) | | | 21,570 | | | | 525 | |
Acadia Healthcare Co., Inc. (Æ) | | | 38,635 | | | | 617 | |
Accuray, Inc. (Æ) | | | 135,858 | | | | 1,046 | |
Affymax, Inc. (Æ) | | | 39,877 | | | | 523 | |
Affymetrix, Inc. (Æ) | | | 189,165 | | | | 836 | |
Akorn, Inc. (Æ) | | | 117,811 | | | | 1,429 | |
Alere, Inc. (Æ) | | | 94,153 | | | | 2,249 | |
Alnylam Pharmaceuticals, Inc. (Æ)(Ñ) | | | 37,295 | | | | 425 | |
AMERIGROUP Corp. Class A (Æ) | | | 30,370 | | | | 1,876 | |
Analogic Corp. | | | 29,705 | | | | 2,026 | |
Anika Therapeutics, Inc. (Æ) | | | 36,624 | | | | 625 | |
Antares Pharma, Inc. (Æ)(Ñ) | | | 172,900 | | | | 545 | |
Arqule, Inc. (Æ) | | | 58,560 | | | | 413 | |
Array BioPharma, Inc. (Æ) | | | 114,437 | | | | 399 | |
Astex Pharmaceuticals (Æ) | | | 70,400 | | | | 124 | |
athenahealth, Inc. (Æ)(Ñ) | | | 49,760 | | | | 3,605 | |
BioCryst Pharmaceuticals, Inc. (Æ)(Ñ) | | | 119,790 | | | | 434 | |
Bio-Reference Labs, Inc. (Æ)(Ñ) | | | 26,870 | | | | 573 | |
Cambrex Corp. (Æ) | | | 96,600 | | | | 626 | |
Cantel Medical Corp. | | | 76,902 | | | | 1,806 | |
Catalyst Health Solutions, Inc. (Æ) | | | 82,912 | | | | 7,161 | |
Centene Corp. (Æ) | | | 143,334 | | | | 5,675 | |
Cepheid, Inc. (Æ) | | | 61,195 | | | | 2,351 | |
Clovis Oncology, Inc. (Æ)(Ñ) | | | 22,363 | | | | 401 | |
Computer Programs & Systems, Inc. | | | 67,912 | | | | 4,047 | |
Conceptus, Inc. (Æ) | | | 30,994 | | | | 582 | |
CONMED Corp. | | | 77,260 | | | | 2,209 | |
Cooper Cos., Inc. (The) | | | 21,236 | | | | 1,872 | |
Cross Country Healthcare, Inc. (Æ) | | | 4,400 | | | | 20 | |
Curis, Inc. (Æ)(Ñ) | | | 105,305 | | | | 504 | |
Cynosure, Inc. Class A (Æ) | | | 120,348 | | | | 2,488 | |
Discovery Laboratories, Inc. (Æ)(Ñ) | | | 176,030 | | | | 542 | |
Durect Corp. (Æ) | | | 75,100 | | | | 53 | |
Dynavax Technologies Corp. (Æ)(Ñ) | | | 126,017 | | | | 631 | |
Endologix, Inc. (Æ) | | | 41,140 | | | | 616 | |
Epocrates, Inc. (Æ)(Ñ) | | | 26,645 | | | | 217 | |
Exact Sciences Corp. (Æ) | | | 62,200 | | | | 670 | |
| | |
| Russell U.S. Small Cap Equity Fund | | 89 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Geron Corp. (Æ)(Ñ) | | | 24,100 | | | | 40 | |
Greatbatch, Inc. (Æ) | | | 90,700 | | | | 2,112 | |
Haemonetics Corp. (Æ) | | | 58,700 | | | | 4,201 | |
Hanger Orthopedic Group, Inc. (Æ) | | | 239,891 | | | | 5,649 | |
Health Management Associates, Inc. Class A (Æ) | | | 52,600 | | | | 379 | |
Health Net, Inc. (Æ) | | | 51,612 | | | | 1,838 | |
Hill-Rom Holdings, Inc. | | | 44,500 | | | | 1,444 | |
HMS Holdings Corp. (Æ) | | | 218,806 | | | | 5,264 | |
Icon PLC - ADR (Æ) | | | 186,662 | | | | 4,140 | |
Impax Laboratories, Inc. (Æ) | | | 200,350 | | | | 4,935 | |
Insulet Corp. (Æ) | | | 196,519 | | | | 3,510 | |
Invacare Corp. | | | 4,700 | | | | 74 | |
IPC The Hospitalist Co., Inc. (Æ) | | | 67,990 | | | | 2,612 | |
Kindred Healthcare, Inc. (Æ) | | | 83,700 | | | | 807 | |
Ligand Pharmaceuticals, Inc. Class B (Æ) | | | 28,365 | | | | 383 | |
Medidata Solutions, Inc. (Æ) | | | 22,960 | | | | 595 | |
Meridian Bioscience, Inc. | | | 186,719 | | | | 3,837 | |
Metropolitan Health Networks, Inc. (Æ) | | | 49,241 | | | | 368 | |
Molina Healthcare, Inc. (Æ) | | | 157,770 | | | | 4,047 | |
Myriad Genetics, Inc. (Æ) | | | 50,570 | | | | 1,315 | |
NuVasive, Inc. (Æ) | | | 52,100 | | | | 863 | |
NxStage Medical, Inc. (Æ) | | | 15,531 | | | | 264 | |
Omnicell, Inc. (Æ) | | | 122,140 | | | | 1,743 | |
OraSure Technologies, Inc. (Æ) | | | 50,235 | | | | 576 | |
Orexigen Therapeutics, Inc. (Æ) | | | 127,880 | | | | 448 | |
Orthofix International NV (Æ)(Ñ) | | | 82,000 | | | | 3,380 | |
Palomar Medical Technologies, Inc. (Æ) | | | 7,900 | | | | 69 | |
Par Pharmaceutical Cos., Inc. (Æ) | | | 43,000 | | | | 1,821 | |
PerkinElmer, Inc. | | | 26,000 | | | | 718 | |
Pharmacyclics, Inc. (Æ)(Ñ) | | | 14,053 | | | | 387 | |
PharMerica Corp. (Æ)(Ñ) | | | 136,207 | | | | 1,617 | |
Progenics Pharmaceuticals, Inc. (Æ)(Ñ) | | | 74,020 | | | | 813 | |
Quality Systems, Inc. | | | 155,541 | | | | 5,817 | |
Questcor Pharmaceuticals, Inc. (Æ)(Ñ) | | | 130,321 | | | | 5,851 | |
Raptor Pharmaceutical Corp. (Æ)(Ñ) | | | 71,600 | | | | 420 | |
RTI Biologics, Inc. (Æ) | | | 264,311 | | | | 925 | |
Salix Pharmaceuticals, Ltd. (Æ) | | | 53,257 | | | | 2,631 | |
Santarus, Inc. (Æ) | | | 66,438 | | | | 423 | |
Sequenom, Inc. (Æ)(Ñ) | | | 135,600 | | | | 694 | |
Spectranetics Corp. (Æ) | | | 55,185 | | | | 579 | |
Staar Surgical Co. (Æ) | | | 37,165 | | | | 408 | |
STERIS Corp. | | | 137,090 | | | | 4,306 | |
Sun Healthcare Group, Inc. (Æ) | | | 67,146 | | | | 485 | |
SurModics, Inc. (Æ) | | | 9,900 | | | | 146 | |
SXC Health Solutions Corp. (Æ) | | | 114,169 | | | | 10,341 | |
TearLab Corp. (Æ)(Ñ) | | | 130,391 | | | | 535 | |
Tenet Healthcare Corp. (Æ) | | | 152,500 | | | | 791 | |
Threshold Pharmaceuticals, Inc. (Æ)(Ñ) | | | 70,690 | | | | 515 | |
Transcept Pharmaceuticals, Inc. (Æ)(Ñ) | | | 52,706 | | | | 474 | |
Triple-S Management Corp. Class B (Æ) | | | 37,968 | | | | 800 | |
Unilife Corporation (Æ) | | | 133,893 | | | | 573 | |
Universal American Corp. | | | 87,200 | | | | 801 | |
ViroPharma, Inc. (Æ) | | | 15,600 | | | | 339 | |
WellCare Health Plans, Inc. (Æ) | | | 31,300 | | | | 1,915 | |
West Pharmaceutical Services, Inc. | | | 43,110 | | | | 1,936 | |
Wright Medical Group, Inc. (Æ)(Ñ) | | | 232,500 | | | | 4,331 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
XenoPort, Inc. (Æ)(Ñ) | | | 10,600 | | | | 48 | |
Zalicus, Inc. (Æ)(Ñ) | | | 267,100 | | | | 280 | |
| | | | | | | | |
| | | | | | | 158,017 | |
| | | | | | | | |
| |
| Materials and Processing - 5.8% | | | | | |
Aceto Corp. | | | 123,400 | | | | 1,111 | |
AK Steel Holding Corp. (Ñ) | | | 459,304 | | | | 3,408 | |
AMCOL International Corp. | | | 104,258 | | | | 3,436 | |
American Vanguard Corp. | | | 21,832 | | | | 546 | |
Apogee Enterprises, Inc. | | | 168,810 | | | | 2,593 | |
Armtec Infrastructure, Inc. (Æ) | | | 403,680 | | | | 817 | |
Builders FirstSource, Inc. (Æ)(Ñ) | | | 153,090 | | | | 638 | |
Cabot Corp. | | | 61,261 | | | | 2,642 | |
Carpenter Technology Corp. | | | 20,100 | | | | 1,119 | |
Chemtura Corp. (Æ) | | | 156,135 | | | | 2,657 | |
Clarcor, Inc. | | | 62,597 | | | | 3,006 | |
Commercial Metals Co. | | | 332,960 | | | | 4,921 | |
Cytec Industries, Inc. | | | 19,323 | | | | 1,228 | |
Gibraltar Industries, Inc. (Æ) | | | 18,900 | | | | 256 | |
Globe Specialty Metals, Inc. | | | 227,090 | | | | 3,029 | |
Hexcel Corp. (Æ) | | | 85,615 | | | | 2,344 | |
Innospec, Inc. (Æ) | | | 81,300 | | | | 2,458 | |
Interline Brands, Inc. (Æ) | | | 211,913 | | | | 4,459 | |
Kaiser Aluminum Corp. (Ñ) | | | 104,695 | | | | 5,504 | |
KapStone Paper and Packaging Corp. (Æ) | | | 110,500 | | | | 1,996 | |
Kaydon Corp. | | | 59,835 | | | | 1,468 | |
Koppers Holdings, Inc. | | | 98,700 | | | | 3,837 | |
Kraton Performance Polymers, Inc. (Æ) | | | 97,783 | | | | 2,542 | |
Lennox International, Inc. | | | 12,513 | | | | 543 | |
Minerals Technologies, Inc. | | | 39,550 | | | | 2,654 | |
Mueller Industries, Inc. | | | 13,200 | | | | 603 | |
Mueller Water Products, Inc. Class A | | | 601,600 | | | | 2,160 | |
Myers Industries, Inc. | | | 47,820 | | | | 791 | |
NCI Building Systems, Inc. (Æ) | | | 16,600 | | | | 199 | |
Neenah Paper, Inc. | | | 27,660 | | | | 790 | |
Northwest Pipe Co. (Æ) | | | 10,400 | | | | 216 | |
Olympic Steel, Inc. | | | 10,175 | | | | 215 | |
OM Group, Inc. (Æ) | | | 84,269 | | | | 2,033 | |
PH Glatfelter Co. | | | 27,000 | | | | 421 | |
PolyOne Corp. | | | 266,100 | | | | 3,688 | |
RBC Bearings, Inc. (Æ) | | | 19,396 | | | | 909 | |
Rentech, Inc. (Æ) | | | 294,100 | | | | 679 | |
Rockwood Holdings, Inc. (Æ) | | | 16,800 | | | | 930 | |
RTI International Metals, Inc. (Æ) | | | 77,683 | | | | 1,907 | |
Sensient Technologies Corp. | | | 53,625 | | | | 1,992 | |
Spartech Corp. (Æ) | | | 1,405 | | | | 7 | |
TPC Group, Inc. (Æ) | | | 67,286 | | | | 2,825 | |
Trex Co., Inc. (Æ)(Ñ) | | | 19,721 | | | | 631 | |
UFP Technologies, Inc. (Æ) | | | 101,202 | | | | 1,841 | |
Universal Forest Products, Inc. | | | 62,423 | | | | 2,335 | |
Uranium Energy Corp. (Æ)(Ñ) | | | 847,078 | | | | 2,499 | |
WR Grace & Co. (Æ) | | | 32,500 | | | | 1,937 | |
| | | | | | | | |
| | | | | | | 88,820 | |
| | | | | | | | |
| |
| Producer Durables - 16.5% | | | | | |
AAR Corp. | | | 20,652 | | | | 319 | |
ACCO Brands Corp. (Æ) | | | 54,320 | | | | 573 | |
| | | | |
| | 90 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Accuride Corp. (Æ) | | | 125,050 | | | | 907 | |
Actuant Corp. Class A | | | 30,850 | | | | 841 | |
ADA-ES, Inc. Class A (Æ)(Ñ) | | | 16,180 | | | | 435 | |
Advisory Board Co. (The) (Æ)(Ñ) | | | 86,951 | | | | 7,926 | |
Aegion Corp. Class A (Æ) | | | 61,514 | | | | 1,123 | |
AGCO Corp. (Æ) | | | 51,500 | | | | 2,398 | |
Alamo Group, Inc. | | | 9,037 | | | | 304 | |
Alaska Air Group, Inc. (Æ) | | | 50,100 | | | | 1,693 | |
Albany International Corp. Class A | | | 11,900 | | | | 287 | |
Alexander & Baldwin, Inc. | | | 39,194 | | | | 2,005 | |
AM Castle & Co. (Æ)(Ñ) | | | 125,843 | | | | 1,685 | |
American Railcar Industries, Inc. (Æ) | | | 34,169 | | | | 922 | |
American Superconductor
Corp. (Æ)(Ñ) | | | 95,500 | | | | 394 | |
AO Smith Corp. | | | 18,500 | | | | 881 | |
Argan, Inc. | | | 51,659 | | | | 753 | |
Arkansas Best Corp. | | | 146,858 | | | | 2,253 | |
Ascent Capital Group, Inc. Class A (Æ) | | | 3,600 | | | | 185 | |
Astec Industries, Inc. (Æ) | | | 53,860 | | | | 1,685 | |
Barnes Group, Inc. | | | 122,700 | | | | 3,239 | |
Barrett Business Services, Inc. | | | 6,700 | | | | 133 | |
BE Aerospace, Inc. (Æ) | | | 35,930 | | | | 1,690 | |
Blount International, Inc. (Æ) | | | 59,500 | | | | 962 | |
Booz Allen Hamilton Holding Corp. Class A (Ñ) | | | 74,700 | | | | 1,277 | |
Brady Corp. Class A | | | 65,175 | | | | 2,022 | |
Briggs & Stratton Corp. (Ñ) | | | 84,494 | | | | 1,529 | |
Bristow Group, Inc. | | | 184,015 | | | | 8,989 | |
CDI Corp. | | | 40,800 | | | | 724 | |
Celadon Group, Inc. | | | 52,300 | | | | 817 | |
Chart Industries, Inc. (Æ) | | | 82,558 | | | | 6,310 | |
Chicago Bridge & Iron Co. NV | | | 101,068 | | | | 4,489 | |
CIRCOR International, Inc. | | | 96,160 | | | | 2,993 | |
Columbus McKinnon Corp. (Æ) | | | 57,338 | | | | 850 | |
Consolidated Graphics, Inc. (Æ) | | | 7,440 | | | | 298 | |
Con-way, Inc. | | | 200,060 | | | | 6,502 | |
Corporate Executive Board Co. (The) | | | 68,525 | | | | 2,835 | |
Corrections Corp. of America | | | 14,800 | | | | 428 | |
CRA International, Inc. (Æ) | | | 9,500 | | | | 194 | |
Crane Co. | | | 28,600 | | | | 1,262 | |
Diana Shipping, Inc. (Æ) | | | 66,825 | | | | 525 | |
Dice Holdings, Inc. (Æ) | | | 403,737 | | | | 4,352 | |
DXP Enterprises, Inc. (Æ) | | | 40,340 | | | | 1,750 | |
Dycom Industries, Inc. (Æ) | | | 177,792 | | | | 4,159 | |
Electronics for Imaging, Inc. (Æ) | | | 44,300 | | | | 791 | |
EMCOR Group, Inc. | | | 7,100 | | | | 208 | |
EnergySolutions, Inc. (Æ) | | | 250,124 | | | | 1,053 | |
EnerSys (Æ) | | | 42,800 | | | | 1,496 | |
EnPro Industries, Inc. (Æ) | | | 50,800 | | | | 2,104 | |
Esterline Technologies Corp. (Æ) | | | 13,720 | | | | 940 | |
ExlService Holdings, Inc. (Æ) | | | 72,980 | | | | 2,020 | |
Exponent, Inc. (Æ) | | | 20,800 | | | | 994 | |
FARO Technologies, Inc. (Æ) | | | 9,005 | | | | 504 | |
Flow International Corp. (Æ) | | | 48,000 | | | | 197 | |
Foster Wheeler AG (Æ) | | | 35,709 | | | | 821 | |
Franklin Electric Co., Inc. | | | 57,900 | | | | 2,904 | |
FreightCar America, Inc. | | | 23,300 | | | | 503 | |
Frontline, Ltd. (Ñ) | | | 167,900 | | | | 1,100 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
G&K Services, Inc. Class A | | | 65,525 | | | | 2,153 | |
GATX Corp. | | | 99,100 | | | | 4,248 | |
General Cable Corp. (Æ) | | | 80,419 | | | | 2,368 | |
GrafTech International, Ltd. (Æ) | | | 198,294 | | | | 2,328 | |
Granite Construction, Inc. | | | 86,344 | | | | 2,404 | |
Great Lakes Dredge & Dock Corp. | | | 63,400 | | | | 470 | |
Greenbrier Cos., Inc. (Æ) | | | 67,995 | | | | 1,173 | |
Gulfmark Offshore, Inc. Class A (Æ) | | | 13,100 | | | | 631 | |
H&E Equipment Services, Inc. (Æ) | | | 20,600 | | | | 398 | |
Harsco Corp. | | | 221,412 | | | | 4,938 | |
Hawaiian Holdings, Inc. (Æ) | | | 166,900 | | | | 945 | |
Heidrick & Struggles International, Inc. | | | 94,600 | | | | 1,845 | |
Hub Group, Inc. Class A (Æ) | | | 237,695 | | | | 8,319 | |
Huron Consulting Group, Inc. (Æ) | | | 117,573 | | | | 4,143 | |
Kadant, Inc. (Æ) | | | 5,800 | | | | 150 | |
Kansas City Southern | | | 23,400 | | | | 1,802 | |
KBR, Inc. | | | 26,100 | | | | 884 | |
Kelly Services, Inc. Class A (Ñ) | | | 77,340 | | | | 1,082 | |
Kennametal, Inc. | | | 58,042 | | | | 2,451 | |
Knight Transportation, Inc. | | | 289,549 | | | | 4,754 | |
Knoll, Inc. | | | 198,690 | | | | 2,939 | |
Layne Christensen Co. (Æ) | | | 92,871 | | | | 1,909 | |
Lexmark International, Inc. Class A | | | 83,600 | | | | 2,516 | |
Liquidity Services, Inc. (Æ) | | | 9,378 | | | | 500 | |
Littelfuse, Inc. | | | 19,999 | | | | 1,253 | |
LMI Aerospace, Inc. (Æ) | | | 48,896 | | | | 894 | |
Manitex International, Inc. (Æ) | | | 55,779 | | | | 532 | |
MAXIMUS, Inc. | | | 70,210 | | | | 3,107 | |
McGrath RentCorp | | | 56,226 | | | | 1,654 | |
Miller Industries, Inc. | | | 50,106 | | | | 822 | |
Modine Manufacturing Co. (Æ) | | | 17,675 | | | | 140 | |
Monster Worldwide, Inc. (Æ) | | | 91,652 | | | | 791 | |
MTS Systems Corp. | | | 31,785 | | | | 1,525 | |
NACCO Industries, Inc. Class A | | | 6,900 | | | | 783 | |
Navigant Consulting, Inc. (Æ) | | | 178,500 | | | | 2,485 | |
Navistar International Corp. (Æ) | | | 41,900 | | | | 1,423 | |
Net 1 UEPS Technologies, Inc. (Æ) | | | 47,300 | | | | 416 | |
Old Dominion Freight Line, Inc. (Æ) | | | 150,261 | | | | 6,682 | |
On Assignment, Inc. (Æ) | | | 39,704 | | | | 743 | |
Orbital Sciences Corp. (Æ) | | | 3,754 | | | | 47 | |
Overhill Farms, Inc. (Æ)(Å) | | | 179,930 | | | | 817 | |
PHH Corp. (Æ) | | | 102,500 | | | | 1,589 | |
Primoris Services Corp. | | | 3,463 | | | | 50 | |
Quad/Graphics, Inc. (Ñ) | | | 48,600 | | | | 653 | |
Quality Distribution, Inc. (Æ) | | | 32,989 | | | | 369 | |
Quanta Services, Inc. (Æ) | | | 78,301 | | | | 1,732 | |
Regal-Beloit Corp. | | | 33,964 | | | | 2,297 | |
Republic Airways Holdings, Inc. (Æ) | | | 14,262 | | | | 73 | |
Resources Connection, Inc. | | | 393,787 | | | | 5,111 | |
Roadrunner Transportation Systems, Inc. (Æ) | | | 32,850 | | | | 570 | |
Robbins & Myers, Inc. | | | 22,718 | | | | 1,107 | |
RR Donnelley & Sons Co. (Ñ) | | | 41,524 | | | | 520 | |
Ryder System, Inc. | | | 34,100 | | | | 1,661 | |
Saia, Inc. (Æ) | | | 15,300 | | | | 287 | |
ServiceSource International, Inc. (Æ) | | | 193,260 | | | | 3,204 | |
Shaw Group, Inc. (The) (Æ) | | | 54,600 | | | | 1,653 | |
| | |
| Russell U.S. Small Cap Equity Fund | | 91 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Southwest Airlines Co. | | | 274,282 | | | | 2,271 | |
SPX Corp. | | | 16,500 | | | | 1,267 | |
Steelcase, Inc. Class A | | | 299,850 | | | | 2,591 | |
SunOpta, Inc. (Æ) | | | 120,970 | | | | 703 | |
Sykes Enterprises, Inc. (Æ) | | | 158,910 | | | | 2,519 | |
Team, Inc. (Æ) | | | 84,334 | | | | 2,499 | |
Thermon Group Holdings, Inc. (Æ) | | | 32,063 | | | | 712 | |
Titan International, Inc. (Ñ) | | | 43,545 | | | | 1,258 | |
Titan Machinery, Inc. (Æ)(Ñ) | | | 57,125 | | | | 2,035 | |
Toro Co. (The) | | | 54,300 | | | | 3,880 | |
Towers Watson & Co. Class A | | | 30,700 | | | | 2,008 | |
Trimas Corp. (Æ) | | | 19,400 | | | | 427 | |
Trinity Industries, Inc. | | | 26,275 | | | | 778 | |
Triumph Group, Inc. (Ñ) | | | 77,480 | | | | 4,867 | |
TrueBlue, Inc. (Æ) | | | 18,400 | | | | 318 | |
Tsakos Energy Navigation, Ltd. | | | 271,092 | | | | 1,721 | |
United Stationers, Inc. | | | 159,070 | | | | 4,511 | |
URS Corp. | | | 43,600 | | | | 1,801 | |
US Airways Group, Inc. (Æ) | | | 173,200 | | | | 1,777 | |
UTi Worldwide, Inc. | | | 222,393 | | | | 3,707 | |
Wabtec Corp. | | | 64,616 | | | | 5,026 | |
Wesco Aircraft Holdings, Inc. (Æ)(Ñ) | | | 112,060 | | | | 1,769 | |
XPO Logistics, Inc. (Æ) | | | 33,800 | | | | 561 | |
| | | | | | | | |
| | | | | | | 250,879 | |
| | | | | | | | |
| | |
| Technology - 16.7% | | | | | | | | |
AboveNet, Inc. (Æ) | | | 97,277 | | | | 8,091 | |
Acacia Research Corp. (Æ) | | | 116,076 | | | | 4,759 | |
Acme Packet, Inc. (Æ)(Ñ) | | | 82,182 | | | | 2,307 | |
Actuate Corp. (Æ) | | | 39,732 | | | | 282 | |
ADTRAN, Inc. | | | 80,415 | | | | 2,454 | |
Akamai Technologies, Inc. (Æ) | | | 34,201 | | | | 1,115 | |
Allot Communications, Ltd. Class A (Æ) | | | 131,420 | | | | 3,225 | |
American Software, Inc. Class A (Æ) | | | 103,300 | | | | 855 | |
Amtech Systems, Inc. (Æ)(Ñ) | | | 10,653 | | | | 74 | |
ANADIGICS, Inc. (Æ) | | | 146,876 | | | | 325 | |
Anixter International, Inc. (Æ) | | | 39,075 | | | | 2,680 | |
Ansys, Inc. (Æ) | | | 14,485 | | | | 971 | |
Ariba, Inc. (Æ) | | | 108,006 | | | | 4,126 | |
Aruba Networks, Inc. (Æ) | | | 206,977 | | | | 4,371 | |
ATMI, Inc. (Æ) | | | 13,200 | | | | 277 | |
Aviat Networks, Inc. (Æ) | | | 432,516 | | | | 1,103 | |
Avid Technology, Inc. (Æ) | | | 60,500 | | | | 526 | |
Axcelis Technologies, Inc. (Æ) | | | 193,100 | | | | 263 | |
Bankrate, Inc. (Æ)(Ñ) | | | 128,835 | | | | 3,017 | |
Bel Fuse, Inc. Class B | | | 3,000 | | | | 53 | |
Black Box Corp. | | | 4,300 | | | | 97 | |
Brightcove, Inc. (Æ) | | | 23,330 | | | | 437 | |
Brightpoint, Inc. (Æ) | | | 114,400 | | | | 700 | |
BroadSoft, Inc. (Æ)(Ñ) | | | 49,571 | | | | 2,122 | |
Brocade Communications Systems, Inc. (Æ) | | | 141,471 | | | | 784 | |
Brooks Automation, Inc. | | | 177,520 | | | | 2,088 | |
Cadence Design Systems, Inc. (Æ) | | | 59,200 | | | | 691 | |
Callidus Software, Inc. (Æ)(Ñ) | | | 338,380 | | | | 2,680 | |
Cavium, Inc. (Æ) | | | 45,164 | | | | 1,321 | |
Ceva, Inc. (Æ) | | | 79,750 | | | | 1,762 | |
CIBER, Inc. (Æ) | | | 71,513 | | | | 297 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Ciena Corp. (Æ) | | | 58,916 | | | | 873 | |
Cognex Corp. | | | 21,214 | | | | 854 | |
Cohu, Inc. (Å) | | | 196,388 | | | | 2,156 | |
Computer Sciences Corp. | | | 14,300 | | | | 401 | |
Comtech Telecommunications Corp. | | | 5,004 | | | | 155 | |
Concur Technologies, Inc. (Æ)(Ñ) | | | 42,467 | | | | 2,402 | |
Cornerstone OnDemand, Inc. (Æ)(Ñ) | | | 72,224 | | | | 1,501 | |
Cray, Inc. (Æ) | | | 102,942 | | | | 1,148 | |
Cree, Inc. (Æ)(Ñ) | | | 53,575 | | | | 1,655 | |
CSG Systems International, Inc. (Æ) | | | 40,800 | | | | 588 | |
Deltek, Inc. (Æ)(Ñ) | | | 50,540 | | | | 528 | |
Diebold, Inc. | | | 27,800 | | | | 1,097 | |
Diodes, Inc. (Æ) | | | 119,050 | | | | 2,654 | |
DSP Group, Inc. (Æ) | | | 27,626 | | | | 181 | |
EarthLink, Inc. | | | 664,800 | | | | 5,398 | |
Electro Scientific Industries, Inc. | | | 192,346 | | | | 2,743 | |
Emcore Corp. (Æ) | | | 4,000 | | | | 18 | |
Emulex Corp. (Æ) | | | 231,525 | | | | 2,010 | |
Equinix, Inc. (Æ) | | | 7,155 | | | | 1,175 | |
Exar Corp. (Æ) | | | 67,960 | | | | 538 | |
Extreme Networks (Æ) | | | 150,243 | | | | 575 | |
Fabrinet (Æ) | | | 173,697 | | | | 2,922 | |
FSI International, Inc. (Æ) | | | 262,920 | | | | 1,333 | |
GeoEye, Inc. (Æ) | | | 13,158 | | | | 302 | |
Glu Mobile, Inc. (Æ)(Ñ) | | | 121,050 | | | | 551 | |
Guidance Software, Inc. (Æ) | | | 52,756 | | | | 501 | |
Guidewire Software, Inc. (Æ)(Ñ) | | | 71,644 | | | | 1,950 | |
Hutchinson Technology, Inc. (Æ)(Ñ) | | | 23,615 | | | | 49 | |
IAC/InterActiveCorp | | | 55,800 | | | | 2,687 | |
Imperva, Inc. (Æ)(Ñ) | | | 15,810 | | | | 550 | |
InfoSpace, Inc. (Æ) | | | 47,800 | | | | 532 | |
Inphi Corp. (Æ)(Ñ) | | | 265,112 | | | | 2,691 | |
Insight Enterprises, Inc. (Æ) | | | 45,200 | | | | 918 | |
Intermec, Inc. (Æ) | | | 27,181 | | | | 145 | |
International Rectifier Corp. (Æ) | | | 97,098 | | | | 2,120 | |
Intersil Corp. Class A | | | 474,170 | | | | 4,870 | |
Intevac, Inc. (Æ) | | | 6,988 | | | | 56 | |
InvenSense, Inc. Class A (Æ)(Ñ) | | | 55,324 | | | | 890 | |
IPG Photonics Corp. (Æ)(Ñ) | | | 40,391 | | | | 1,955 | |
Jive Software, Inc. (Æ)(Ñ) | | | 37,848 | | | | 901 | |
Kemet Corp. (Æ) | | | 144,210 | | | | 1,227 | |
Kenexa Corp. (Æ) | | | 169,214 | | | | 5,528 | |
Kulicke & Soffa Industries, Inc. (Æ) | | | 162,300 | | | | 2,126 | |
LivePerson, Inc. (Æ) | | | 361,447 | | | | 5,740 | |
LSI Corp. (Æ) | | | 276,200 | | | | 2,221 | |
LTX-Credence Corp. (Æ) | | | 75,800 | | | | 523 | |
Manhattan Associates, Inc. (Æ) | | | 24,100 | | | | 1,209 | |
Mattson Technology, Inc. (Æ) | | | 68,000 | | | | 159 | |
Mentor Graphics Corp. (Æ) | | | 323,700 | | | | 4,677 | |
Mercury Computer Systems, Inc. (Æ) | | | 116,862 | | | | 1,543 | |
Methode Electronics, Inc. | | | 263,882 | | | | 2,230 | |
Micrel, Inc. | | | 451,240 | | | | 4,914 | |
MICROS Systems, Inc. (Æ) | | | 79,530 | | | | 4,520 | |
Mindspeed Technologies, Inc. (Æ)(Ñ) | | | 88,723 | | | | 444 | |
MKS Instruments, Inc. | | | 29,200 | | | | 807 | |
Molex, Inc. (Ñ) | | | 52,538 | | | | 1,450 | |
Monolithic Power Systems, Inc. (Æ) | | | 28,060 | | | | 581 | |
Monotype Imaging Holdings, Inc. (Æ) | | | 267,112 | | | | 3,790 | |
NCR Corp. (Æ) | | | 75,017 | | | | 1,763 | |
| | | | |
| | 92 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Netlist, Inc. (Æ)(Ñ) | | | 193,100 | | | | 485 | |
Netscout Systems, Inc. (Æ) | | | 28,260 | | | | 585 | |
NetSuite, Inc. (Æ) | | | 65,817 | | | | 2,921 | |
NeuStar, Inc. Class A (Æ) | | | 31,200 | | | | 1,134 | |
Newport Corp. (Æ) | | | 153,641 | | | | 2,623 | |
Novatel Wireless, Inc. (Æ) | | | 61,957 | | | | 179 | |
Oclaro, Inc. (Æ)(Ñ) | | | 405,511 | | | | 1,164 | |
Openwave Systems, Inc. (Æ) | | | 24,100 | | | | 62 | |
Opnet Technologies, Inc. | | | 96,970 | | | | 2,246 | |
PDF Solutions, Inc. (Æ) | | | 6,180 | | | | 54 | |
Perficient, Inc. (Æ)(Å) | | | 402,069 | | | | 4,829 | |
Pericom Semiconductor Corp. (Æ) | | | 4,021 | | | | 32 | |
Plantronics, Inc. | | | 96,099 | | | | 3,682 | |
Plexus Corp. (Æ) | | | 148,600 | | | | 4,810 | |
PLX Technology, Inc. (Æ)(Ñ) | | | 25,782 | | | | 103 | |
Polycom, Inc. (Æ) | | | 87,238 | | | | 1,158 | |
Procera Networks, Inc. (Æ) | | | 43,700 | | | | 907 | |
Progress Software Corp. (Æ) | | | 222,189 | | | | 5,141 | |
PROS Holdings, Inc. (Æ) | | | 32,620 | | | | 642 | |
QLIK Technologies, Inc. (Æ) | | | 53,645 | | | | 1,545 | |
Quest Software, Inc. (Æ) | | | 73,025 | | | | 1,699 | |
Radisys Corp. (Æ) | | | 12,726 | | | | 81 | |
RealNetworks, Inc. | | | 19,421 | | | | 186 | |
RealPage, Inc. (Æ) | | | 9,708 | | | | 176 | |
Responsys, Inc. (Æ) | | | 393,742 | | | | 5,032 | |
RF Micro Devices, Inc. (Æ) | | | 219,821 | | | | 952 | |
Saba Software, Inc. (Æ) | | | 47,075 | | | | 458 | |
Sanmina-SCI Corp. (Æ) | | | 201,250 | | | | 1,791 | |
Seachange International, Inc. (Æ) | | | 6,823 | | | | 56 | |
Silicon Image, Inc. (Æ) | | | 203,400 | | | | 1,220 | |
Silicon Motion Technology Corp. - ADR (Æ)(Ñ) | | | 70,046 | | | | 1,192 | |
Smith Micro Software, Inc. (Æ) | | | 58,652 | | | | 118 | |
SolarWinds, Inc. (Æ) | | | 85,750 | | | | 4,023 | |
Sonus Networks, Inc. (Æ) | | | 335,500 | | | | 949 | |
Sourcefire, Inc. (Æ) | | | 35,770 | | | | 1,824 | |
SPS Commerce, Inc. (Æ)(Å) | | | 146,621 | | | | 4,079 | |
Super Micro Computer, Inc. (Æ) | | | 32,745 | | | | 578 | |
Synacor, Inc. (Æ) | | | 34,960 | | | | 290 | |
Synchronoss Technologies, Inc. (Æ)(Ñ) | | | 117,780 | | | | 3,686 | |
SYNNEX Corp. (Æ) | | | 67,000 | | | | 2,552 | |
Syntel, Inc. | | | 38,337 | | | | 2,296 | |
Tangoe, Inc. (Æ) | | | 390,836 | | | | 8,004 | |
Tech Data Corp. (Æ) | | | 23,600 | | | | 1,269 | |
TeleCommunication Systems, Inc. Class A (Æ) | | | 83,400 | | | | 161 | |
TeleNav, Inc. (Æ) | | | 9,307 | | | | 63 | |
Tellabs, Inc. | | | 421,290 | | | | 1,588 | |
Tessera Technologies, Inc. | | | 259,933 | | | | 4,065 | |
TNS, Inc. (Æ) | | | 13,900 | | | | 284 | |
TriQuint Semiconductor, Inc. (Æ) | | | 217,405 | | | | 1,061 | |
Ultimate Software Group, Inc. (Æ) | | | 39,606 | | | | 3,056 | |
Unisys Corp. (Æ) | | | 65,200 | | | | 1,217 | |
United Online, Inc. | | | 150,300 | | | | 712 | |
Universal Display Corp. (Æ) | | | 9,700 | | | | 436 | |
Velti PLC (Æ)(Ñ) | | | 596,208 | | | | 7,125 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
VeriFone Systems, Inc. (Æ) | | | 24,493 | | | | 1,167 | |
Vishay Intertechnology, Inc. (Æ) | | | 138,992 | | | | 1,559 | |
Volterra Semiconductor Corp. (Æ) | | | 17,190 | | | | 565 | |
Xyratex, Ltd. | | | 58,544 | | | | 850 | |
| | | | | | | | |
| | | | | | | 254,600 | |
| | | | | | | | |
| | |
| Utilities - 3.0% | | | | | | | | |
Alaska Communications Systems Group, Inc. (Ñ) | | | 126,691 | | | | 324 | |
Alliant Energy Corp. | | | 12,300 | | | | 556 | |
Avista Corp. | | | 87,000 | | | | 2,300 | |
Black Hills Corp. | | | 130,718 | | | | 4,315 | |
Boingo Wireless, Inc. (Æ)(Ñ) | | | 57,740 | | | | 608 | |
Cbeyond, Inc. (Æ) | | | 92,800 | | | | 597 | |
Chesapeake Utilities Corp. | | | 6,300 | | | | 265 | |
Cincinnati Bell, Inc. (Æ) | | | 204,843 | | | | 778 | |
Cleco Corp. | | | 120,200 | | | | 4,904 | |
Connecticut Water Service, Inc. | | | 6,600 | | | | 183 | |
Great Plains Energy, Inc. | | | 87,700 | | | | 1,791 | |
Halcon Resources Corp. (Æ)(Ñ) | | | 50,004 | | | | 545 | |
inContact, Inc. (Æ) | | | 117,000 | | | | 638 | |
j2 Global, Inc. (Ñ) | | | 154,600 | | | | 3,993 | |
Laclede Group, Inc. (The) | | | 10,260 | | | | 404 | |
NorthWestern Corp. | | | 109,776 | | | | 3,899 | |
NTELOS Holdings Corp. | | | 40,630 | | | | 822 | |
NV Energy, Inc. | | | 229,500 | | | | 3,821 | |
OGE Energy Corp. | | | 31,574 | | | | 1,704 | |
Pinnacle West Capital Corp. | | | 34,700 | | | | 1,678 | |
PNM Resources, Inc. | | | 141,900 | | | | 2,662 | |
Portland General Electric Co. | | | 89,800 | | | | 2,320 | |
Premiere Global Services, Inc. (Æ)(Å) | | | 542,245 | | | | 4,853 | |
Telephone & Data Systems, Inc. | | | 71,887 | | | | 1,746 | |
| | | | | | | | |
| | | | | | | 45,706 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $1,300,049) | | | | | | | 1,474,206 | |
| | | | | | | | |
| |
| Short-Term Investments - 3.6% | | | | | |
Russell U.S. Cash Management Fund | | | 54,516,335 | (¥) | | | 54,516 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $54,516) | | | | | | | 54,516 | |
| | | | | | | | |
| | |
| Other Securities - 7.6% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 3,996,700 | (¥) | | | 4,069 | |
Russell U.S. Cash Collateral Fund (×) | | | 111,475,665 | (¥) | | | 111,476 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $115,472) | | | | | | | 115,545 | |
| | | | | | | | |
| | |
Total Investments - 108.0%
(identified cost $1,470,037) | | | | | | | 1,644,267 | |
| |
Other Assets and Liabilities,
Net - (8.0%) | | | | (121,720 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,522,547 | |
| | | | | | | | |
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 U.S. Small Cap Equity Fund | | 93 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | | | |
S&P Midcap 400 E-Mini Index Futures (CME) | | | 537 | | | | USD | | | | 53,142 | | | | 06/12 | | | | 498 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | 498 | |
| | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | % of Net
Assets | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 231,389 | | | $ | — | | | $ | — | | | $ | 231,389 | | | | 15.2 | |
Consumer Staples | | | 37,766 | | | | — | | | | — | | | | 37,766 | | | | 2.5 | |
Energy | | | 70,955 | | | | — | | | | — | | | | 70,955 | | | | 4.6 | |
Financial Services | | | 336,074 | | | | — | | | | — | | | | 336,074 | | | | 22.1 | |
Health Care | | | 158,017 | | | | — | | | | — | | | | 158,017 | | | | 10.4 | |
Materials and Processing | | | 88,820 | | | | — | | | | — | | | | 88,820 | | | | 5.8 | |
Producer Durables | | | 250,879 | | | | — | | | | — | | | | 250,879 | | | | 16.5 | |
Technology | | | 254,600 | | | | — | | | | — | | | | 254,600 | | | | 16.7 | |
Utilities | | | 45,706 | | | | — | | | | — | | | | 45,706 | | | | 3.0 | |
Short-Term Investments | | | — | | | | 54,516 | | | | — | | | | 54,516 | | | | 3.6 | |
Other Securities | | | — | | | | 115,545 | | | | — | | | | 115,545 | | | | 7.6 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 1,474,206 | | | | 170,061 | | | | — | | | | 1,644,267 | | | | 108.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (8.0 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 498 | | | | — | | | | — | | | | 498 | | | | — | ** |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 498 | | | $ | — | | | $ | — | | | $ | 498 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Other financial instruments reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
| ** | | Less than .05% of Net Assets. |
For a description of the levels see note 2 in the Notes to Financial Statements.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 94 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 498 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 9,251 | |
Foreign currency-related transactions | | | (15 | ) |
| | | | |
| | | 9,236 | |
| | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (3,816 | ) |
| | | | |
| * | 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 and 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 Cap Equity Fund | | 95 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,470,037 | |
Investments, at market**, *** | | | 1,644,267 | |
Cash (restricted) | | | 3,700 | |
Foreign currency holdings* | | | 44 | |
Receivables: | | | | |
Dividends and interest | | | 490 | |
Dividends from affiliated Russell money market funds | | | 6 | |
Investments sold | | | 13,027 | |
Fund shares sold | | | 1,844 | |
Prepaid expenses | | | 2 | |
| | | | |
Total assets | | | 1,663,380 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 21,554 | |
Fund shares redeemed | | | 2,037 | |
Accrued fees to affiliates | | | 1,112 | |
Other accrued expenses | | | 218 | |
Daily variation margin on futures contracts | | | 440 | |
Payable upon return of securities loaned | | | 115,472 | |
| | | | |
Total liabilities | | | 140,833 | |
| | | | |
| | | | |
Net Assets | | $ | 1,522,547 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 96 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 933 | |
Accumulated net realized gain (loss) | | | (162,644 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 174,230 | |
Futures contracts | | | 498 | |
Shares of beneficial interest | | | 617 | |
Additional paid-in capital | | | 1,508,913 | |
| | | | |
Net Assets | | $ | 1,522,547 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 24.53 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 26.03 | |
Class A — Net assets | | $ | 16,317,672 | |
Class A — Shares outstanding ($.01 par value) | | | 665,269 | |
Net asset value per share: Class C(a) | | $ | 24.05 | |
Class C — Net assets | | $ | 29,221,734 | |
Class C — Shares outstanding ($.01 par value) | | | 1,215,093 | |
Net asset value per share: Class E(a) | | $ | 24.60 | |
Class E — Net assets | | $ | 25,644,430 | |
Class E — Shares outstanding ($.01 par value) | | | 1,042,634 | |
Net asset value per share: Class I(a) | | $ | 24.75 | |
Class I — Net assets | | $ | 183,055,811 | |
Class I — Shares outstanding ($.01 par value) | | | 7,395,957 | |
Net asset value per share: Class S(a) | | $ | 24.67 | |
Class S — Net assets | | $ | 780,808,158 | |
Class S — Shares outstanding ($.01 par value) | | | 31,652,583 | |
Net asset value per share: Class Y(a) | | $ | 24.67 | |
Class Y — Net assets | | $ | 487,499,515 | |
Class Y — Shares outstanding ($.01 par value) | | | 19,758,143 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 44 | |
** Securities on loan included in investments | | $ | 117,837 | |
*** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 170,061 | |
| (a) | 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.
| | |
| Russell U.S. Small Cap Equity Fund | | 97 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 9,397 | |
Dividends from affiliated Russell money market funds | | | 31 | |
Securities lending income | | | 802 | |
| | | | |
Total investment income | | | 10,230 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 5,143 | |
Administrative fees | | | 367 | |
Custodian fees | | | 200 | |
Distribution fees - Class A | | | 20 | |
Distribution fees - Class C | | | 109 | |
Transfer agent fees - Class A | | | 14 | |
Transfer agent fees - Class C | | | 26 | |
Transfer agent fees - Class E | | | 24 | |
Transfer agent fees - Class I | | | 89 | |
Transfer agent fees - Class S | | | 663 | |
Transfer agent fees - Class Y | | | 11 | |
Professional fees | | | 56 | |
Registration fees | | | 70 | |
Shareholder servicing fees - Class C | | | 37 | |
Shareholder servicing fees - Class E | | | 33 | |
Trustees’ fees | | | 14 | |
Printing fees | | | 64 | |
Miscellaneous | | | 17 | |
| | | | |
Expenses before reductions | | | 6,957 | |
Expense reductions | | | (8 | ) |
| | | | |
Net expenses | | | 6,949 | |
| | | | |
Net investment income (loss) | | | 3,281 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 104,760 | |
Futures contracts | | | 9,251 | |
Foreign currency-related transactions | | | (2 | ) |
| | | | |
Net realized gain (loss) | | | 114,009 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 72,896 | |
Futures contracts | | | (3,816 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 69,080 | |
| | | | |
Net realized and unrealized gain (loss) | | | 183,089 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 186,370 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 98 | | | Russell U.S. Small Cap Equity Fund |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 3,281 | | | $ | 6,025 | |
Net realized gain (loss) | | | 114,009 | | | | 251,533 | |
Net change in unrealized appreciation (depreciation) | | | 69,080 | | | | (147,045 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 186,370 | | | | 110,513 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (5 | ) | | | (38 | ) |
Class E | | | (29 | ) | | | (80 | ) |
Class I | | | (634 | ) | | | (1,169 | ) |
Class S | | | (2,265 | ) | | | (3,149 | ) |
Class Y | | | (2,245 | ) | | | (3,344 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (5,178 | ) | | | (7,780 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (102,373 | ) | | | (146,507 | ) |
Fund Reimbursements | | | — | | | | 593 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 78,819 | | | | (43,181 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,443,728 | | | | 1,486,909 | |
| | | | | | | | |
End of period | | $ | 1,522,547 | | | $ | 1,443,728 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 933 | | | $ | 2,830 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Small Cap Equity Fund | | 99 |
Russell Investment Company
Russell U.S. Small Cap Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 21.67 | | | | .02 | | | | 2.85 | | | | 2.87 | | | | (.01 | ) | | | — | |
October 31, 2011 | | | 20.39 | | | | .02 | | | | 1.32 | | | | 1.34 | | | | (.06 | ) | | | — | |
October 31, 2010 | | | 16.28 | | | | .02 | | | | 4.14 | | | | 4.16 | | | | (.05 | ) | | | — | |
October 31, 2009 | | | 14.95 | | | | .06 | | | | 1.33 | | | | 1.39 | | | | (.06 | ) | | | — | |
October 31, 2008(3) | | | 21.95 | | | | .02 | | | | (7.02 | ) | | | (7.00 | ) | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 21.32 | | | | (.07 | ) | | | 2.80 | | | | 2.73 | | | | — | | | | — | |
October 31, 2011 | | | 20.16 | | | | (.15 | ) | | | 1.31 | | | | 1.16 | | | | — | | | | — | |
October 31, 2010 | | | 16.18 | | | | (.12 | ) | | | 4.10 | | | | 3.98 | | | | — | | | | — | |
October 31, 2009 | | | 14.93 | | | | (.04 | ) | | | 1.31 | | | | 1.27 | | | | (.02 | ) | | | — | |
October 31, 2008(3) | | | 21.95 | | | | (.01 | ) | | | (7.01 | ) | | | (7.02 | ) | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 21.74 | | | | .02 | | | | 2.86 | | | | 2.88 | | | | (.02 | ) | | | — | |
October 31, 2011 | | | 20.45 | | | | .04 | | | | 1.30 | | | | 1.35 | | | | (.06 | ) | | | — | |
October 31, 2010 | | | 16.32 | | | | .04 | | | | 4.15 | | | | 4.19 | | | | (.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 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 21.91 | | | | .06 | | | | 2.86 | | | | 2.92 | | | | (.08 | ) | | | — | |
October 31, 2011 | | | 20.60 | | | | .10 | | | | 1.32 | | | | 1.42 | | | | (.11 | ) | | | — | |
October 31, 2010 | | | 16.43 | | | | .09 | | | | 4.17 | | | | 4.26 | | | | (.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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 21.83 | | | | .05 | | | | 2.86 | | | | 2.91 | | | | (.07 | ) | | | — | |
October 31, 2011 | | | 20.53 | | | | .08 | | | | 1.32 | | | | 1.40 | | | | (.10 | ) | | | — | |
October 31, 2010 | | | 16.39 | | | | .07 | | | | 4.15 | | | | 4.22 | | | | (.08 | ) | | | — | |
October 31, 2009 | | | 15.03 | | | | .10 | | | | 1.33 | | | | 1.43 | | | | (.07 | ) | | | — | |
October 31, 2008(3) | | | 22.06 | | | | .03 | | | | (7.06 | ) | | | (7.03 | ) | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 21.85 | | | | .07 | | | | 2.85 | | | | 2.92 | | | | (.10 | ) | | | — | |
October 31, 2011 | | | 20.55 | | | | .12 | | | | 1.32 | | | | 1.44 | | | | (.14 | ) | | | — | |
October 31, 2010 | | | 16.39 | | | | .10 | | | | 4.17 | | | | 4.27 | | | | (.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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 100 | | | Russell U.S. Small Cap Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.01 | ) | | | 24.53 | | | | 13.24 | | | | 16,317 | | | | 1.24 | | | | 1.24 | | | | .16 | | | | 84 | |
| | (.06 | ) | | | 21.67 | | | | 6.55 | | | | 15,392 | | | | 1.25 | | | | 1.25 | | | | .09 | | | | 111 | |
| | (.05 | ) | | | 20.39 | | | | 25.58 | | | | 13,078 | | | | 1.23 | | | | 1.23 | | | | .12 | | | | 99 | |
| | (.06 | ) | | | 16.28 | | | | 9.37 | | | | 9,278 | | | | 1.24 | | | | 1.24 | | | | .40 | | | | 153 | |
| | — | | | | 14.95 | | | | (31.89 | ) | | | 6,982 | | | | 1.38 | | | | 1.37 | | | | .47 | | | | 163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 24.05 | | | | 12.80 | | | | 29,222 | | | | 1.99 | | | | 1.99 | | | | (.59 | ) | | | 84 | |
| | — | | | | 21.32 | | | | 5.75 | | | | 28,910 | | | | 2.00 | | | | 2.00 | | | | (.66 | ) | | | 111 | |
| | — | | | | 20.16 | | | | 24.60 | | | | 32,499 | | | | 1.98 | | | | 1.98 | | | | (.63 | ) | | | 99 | |
| | (.02 | ) | | | 16.18 | | | | 8.51 | | | | 30,345 | | | | 1.98 | | | | 1.98 | | | | (.28 | ) | | | 153 | |
| | — | | | | 14.93 | | | | (31.98 | ) | | | 33,486 | | | | 2.13 | | | | 2.11 | | | | (.28 | ) | | | 163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.02 | ) | | | 24.60 | | | | 13.28 | | | | 25,644 | | | | 1.24 | | | | 1.18 | | | | .21 | | | | 84 | |
| | (.06 | ) | | | 21.74 | | | | 6.58 | | | | 26,404 | | | | 1.24 | | | | 1.16 | | | | .18 | | | | 111 | |
| | (.06 | ) | | | 20.45 | | | | 25.71 | | | | 30,702 | | | | 1.23 | | | | 1.12 | | | | .24 | | | | 99 | |
| | (.03 | ) | | | 16.32 | | | | 9.44 | | | | 33,923 | | | | 1.23 | | | | 1.10 | | | | .61 | | | | 153 | |
| | (4.99 | ) | | | 14.95 | | | | (43.26 | ) | | | 40,553 | | | | 1.22 | | | | 1.17 | | | | .60 | | | | 163 | |
| | (7.01 | ) | | | 31.79 | | | | 15.98 | | | | 38,520 | | | | 1.15 | | | | 1.13 | | | | .17 | | | | 143 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.08 | ) | | | 24.75 | | | | 13.37 | | | | 183,056 | | | | .91 | | | | .91 | | | | .49 | | | | 84 | |
| | (.11 | ) | | | 21.91 | | | | 6.89 | | | | 177,437 | | | | .92 | | | | .92 | | | | .42 | | | | 111 | |
| | (.09 | ) | | | 20.60 | | | | 26.03 | | | | 216,197 | | | | .90 | | | | .90 | | | | .45 | | | | 99 | |
| | (.06 | ) | | | 16.43 | | | | 9.62 | | | | 211,299 | | | | .91 | | | | .91 | | | | .82 | | | | 153 | |
| | (5.08 | ) | | | 15.05 | | | | (43.08 | ) | | | 260,535 | | | | .99 | | | | .97 | | | | .77 | | | | 163 | |
| | (7.05 | ) | | | 31.98 | | | | 16.21 | | | | 480,645 | | | | .95 | | | | .93 | | | | .38 | | | | 143 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.07 | ) | | | 24.67 | | | | 13.37 | | | | 780,808 | | | | .99 | | | | .99 | | | | .41 | | | | 84 | |
| | (.10 | ) | | | 21.83 | | | | 6.80 | | | | 704,781 | | | | 1.00 | | | | 1.00 | | | | .34 | | | | 111 | |
| | (.08 | ) | | | 20.53 | | | | 25.84 | | | | 647,424 | | | | .98 | | | | .98 | | | | .37 | | | | 99 | |
| | (.07 | ) | | | 16.39 | | | | 9.58 | | | | 530,812 | | | | .99 | | | | .98 | | | | .68 | | | | 153 | |
| | — | | | | 15.03 | | | | (31.87 | ) | | | 475,057 | | | | 1.11 | | | | 1.10 | | | | .73 | | | | 163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.10 | ) | | | 24.67 | | | | 13.44 | | | | 487,500 | | | | .81 | | | | .81 | | | | .58 | | | | 84 | |
| | (.14 | ) | | | 21.85 | | | | 7.01 | | | | 490,804 | | | | .82 | | | | .82 | | | | .52 | | | | 111 | |
| | (.11 | ) | | | 20.55 | | | | 26.08 | | | | 547,009 | | | | .80 | | | | .80 | | | | .55 | | | | 99 | |
| | (.08 | ) | | | 16.39 | | | | 9.74 | | | | 545,845 | | | | .81 | | | | .81 | | | | .87 | | | | 153 | |
| | (5.13 | ) | | | 15.02 | | | | (43.09 | ) | | | 501,256 | | | | .93 | | | | .92 | | | | .97 | | | | 163 | |
| | (7.08 | ) | | | 31.98 | | | | 16.30 | | | | 93,321 | | | | .85 | | | | .83 | | | | .47 | | | | 143 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell U.S. Small Cap Equity Fund | | 101 |
Russell Investment Company
Russell International Developed Markets Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,033.07 | | | $ | 1,018.75 | |
Expenses Paid During Period* | | $ | 6.22 | | | $ | 6.17 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,028.84 | | | $ | 1,015.02 | |
Expenses Paid During Period* | | $ | 9.99 | | | $ | 9.92 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,033.41 | | | $ | 1,019.05 | |
Expenses Paid During Period* | | $ | 5.92 | | | $ | 5.87 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.17% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,034.53 | | | $ | 1,020.39 | |
Expenses Paid During Period* | | $ | 4.55 | | | $ | 4.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 102 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,034.15 | | | $ | 1,019.99 | |
Expenses Paid During Period* | | $ | 4.96 | | | $ | 4.92 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,035.34 | | | $ | 1,020.89 | |
Expenses Paid During Period* | | $ | 4.05 | | | $ | 4.02 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell International Developed Markets Fund | | 103 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 91.7% | | | | | | | | |
| Australia - 3.0% | | | | | | | | |
Alumina, Ltd. | | | 102,468 | | | | 124 | |
Amcor, Ltd. (Æ) | | | 1,591,637 | | | | 12,471 | |
AMP, Ltd. | | | 2,907,512 | | | | 12,936 | |
Ansell, Ltd. - GDR (Ñ) | | | 92,880 | | | | 1,437 | |
ASX, Ltd. - ADR | | | 8,500 | | | | 283 | |
Australia & New Zealand Banking Group, Ltd. - ADR | | | 103,130 | | | | 2,569 | |
Bendigo and Adelaide Bank, Ltd. | | | 50,610 | | | | 397 | |
BGP Holdings PLC (Æ)(Þ) | | | 559,805 | | | | — | |
BHP Billiton, Ltd. - ADR (Ñ) | | | 319,004 | | | | 17,439 | |
BlueScope Steel, Ltd. (Æ) | | | 1,897,143 | | | | 781 | |
Boart Longyear, Ltd. | | | 520,171 | | | | 2,271 | |
Caltex Australia, Ltd. | | | 79,447 | | | | 1,140 | |
Campbell Brothers, Ltd. | | | 14,730 | | | | 1,052 | |
CFS Retail Property Trust (Ñ)(ö) | | | 112,154 | | | | 225 | |
Coca-Cola Amatil, Ltd. | | | 265,694 | | | | 3,447 | |
Commonwealth Bank of Australia - ADR | | | 59,607 | | | | 3,228 | |
Computershare, Ltd. | | | 17,281 | | | | 151 | |
CSR, Ltd. (Ñ) | | | 199,275 | | | | 362 | |
David Jones, Ltd. | | | 249,074 | | | | 646 | |
Dexus Property Group (ö) | | | 228,810 | | | | 223 | |
Downer EDI, Ltd. (Æ) | | | 270,351 | | | | 1,017 | |
Echo Entertainment Group, Ltd. | | | 33,191 | | | | 156 | |
Flight Centre, Ltd. | | | 25,371 | | | | 558 | |
Fortescue Metals Group, Ltd. (Ñ) | | | 326,056 | | | | 1,916 | |
Goodman Group (ö) | | | 71,766 | | | | 269 | |
GPT Group (ö) | | | 75,544 | | | | 257 | |
Iluka Resources, Ltd. (Ñ) | | | 183,700 | | | | 3,254 | |
Incitec Pivot, Ltd. | | | 322,055 | | | | 1,097 | |
Insurance Australia Group, Ltd. | | | 539,610 | | | | 1,990 | |
Leighton Holdings, Ltd. - ADR (Ñ) | | | 75,800 | | | | 1,626 | |
Lend Lease Group | | | 22,716 | | | | 176 | |
Macquarie Group, Ltd. | | | 46,348 | | | | 1,411 | |
Mirvac Group Class (ö) | | | 152,662 | | | | 206 | |
Monadelphous Group, Ltd. (Ñ) | | | 114,789 | | | | 2,780 | |
Mount Gibson Iron, Ltd. | | | 402,551 | | | | 464 | |
National Australia Bank, Ltd. - ADR | | | 268,249 | | | | 7,052 | |
Newcrest Mining, Ltd. | | | 36,009 | | | | 987 | |
OZ Minerals, Ltd. | | | 13,251 | | | | 129 | |
Pacific Brands, Ltd. | | | 201,005 | | | | 129 | |
Primary Health Care Limited | | | 115,404 | | | | 340 | |
Qantas Airways, Ltd. (Æ) | | | 358,180 | | | | 610 | |
QBE Insurance Group, Ltd. | | | 1,419,329 | | | | 20,468 | |
Rio Tinto, Ltd. - ADR | | | 42,216 | | | | 2,919 | |
Sims Metal Management, Ltd. | | | 24,728 | | | | 366 | |
Sonic Healthcare, Ltd. | | | 84,290 | | | | 1,108 | |
Stockland (ö) | | | 98,046 | | | | 317 | |
TABCORP Holdings, Ltd. | | | 610,230 | | | | 1,825 | |
Tatts Group, Ltd. | | | 185,660 | | | | 499 | |
Telstra Corp., Ltd. | | | 884,227 | | | | 3,262 | |
Wesfarmers, Ltd. | | | 308,324 | | | | 9,728 | |
Westfield Group (ö) | | | 106,482 | | | | 1,025 | |
Westfield Retail Trust (ö) | | | 126,283 | | | | 358 | |
Westpac Banking Corp. | | | 383,062 | | | | 9,072 | |
Woolworths, Ltd. | | | 45,595 | | | | 1,232 | |
| | | | | | | | |
| | | | | | | 139,785 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Belgium - 1.0% | | | | | | | | |
Ageas (Æ) | | | 255,564 | | | | — | |
Anheuser-Busch InBev NV (Ñ) | | | 420,759 | | | | 30,327 | |
Belgacom SA (Ñ) | | | 433,398 | | | | 12,311 | |
KBC Groep NV | | | 137,690 | | | | 2,663 | |
Umicore SA | | | 18,251 | | | | 990 | |
| | | | | | | | |
| | | | | | | 46,291 | |
| | | | | | | | |
| | |
| Bermuda - 0.6% | | | | | | | | |
Brilliance China Automotive Holdings, Ltd. (Æ)(Ñ) | | | 1,020,379 | | | | 1,107 | |
Catlin Group, Ltd. | | | 81,790 | | | | 560 | |
Cheung Kong Infrastructure Holdings, Ltd. | | | 17,000 | | | | 101 | |
Credicorp, Ltd. | | | 24,810 | | | | 3,248 | |
First Pacific Co., Ltd. | | | 100,000 | | | | 109 | |
Jardine Matheson Holdings, Ltd. | | | 153,800 | | | | 7,636 | |
Li & Fung, Ltd. | | | 3,480,000 | | | | 7,446 | |
Nine Dragons Paper Holdings, Ltd. | | | 1,958,192 | | | | 1,615 | |
NWS Holdings, Ltd. | | | 61,500 | | | | 93 | |
RenaissanceRe Holdings, Ltd. | | | 106,200 | | | | 8,290 | |
Yue Yuen Industrial Holdings, Ltd. | | | 155,000 | | | | 519 | |
| | | | | | | | |
| | | | | | | 30,724 | |
| | | | | | | | |
| | |
| Brazil - 1.3% | | | | | | | | |
Banco Bradesco SA - ADR | | | 137,000 | | | | 2,196 | |
BM&FBovespa SA | | | 830,100 | | | | 4,668 | |
BR Malls Participacoes SA | | | 621,500 | | | | 7,721 | |
CETIP SA - Mercados Organizados | | | 127,260 | | | | 1,961 | |
Cia de Bebidas das Americas - ADR | | | 196,485 | | | | 8,248 | |
Cia Hering | | | 76,960 | | | | 1,910 | |
Embraer SA - ADR (Æ) | | | 163,280 | | | | 5,656 | |
Gerdau SA - ADR | | | 351,420 | | | | 3,300 | |
Itau Unibanco Holding SA - ADR | | | 116,500 | | | | 1,828 | |
OGX Petroleo e Gas Participacoes SA (Æ) | | | 1,021,830 | | | | 7,092 | |
PDG Realty SA Empreendimentos e Participacoes | | | 358,172 | | | | 846 | |
Petroleo Brasileiro SA - ADR | | | 68,300 | | | | 1,608 | |
Redecard SA | | | 51,200 | | | | 862 | |
Tim Participacoes SA - ADR (Ñ) | | | 380,470 | | | | 11,387 | |
Vale SA Class B - ADR | | | 86,396 | | | | 1,918 | |
| | | | | | | | |
| | | | | | | 61,201 | |
| | | | | | | | |
| | |
| Canada - 4.3% | | | | | | | | |
ARC Resources, Ltd. (Ñ) | | | 11,700 | | | | 241 | |
B2Gold Corp. | | | 473,531 | | | | 1,788 | |
Bank of Nova Scotia | | | 12,600 | | | | 699 | |
Barrick Gold Corp. | | | 347,000 | | | | 14,030 | |
BCE, Inc. | | | 79,900 | | | | 3,237 | |
Bonavista Energy Corp. | | | 5,600 | | | | 101 | |
Brookfield Asset Management, Inc. Class A | | | 252,867 | | | | 8,340 | |
Brookfield Office Properties, Inc. (Ñ) | | | 10,500 | | | | 190 | |
Canadian Imperial Bank of Commerce | | | 41,300 | | | | 3,116 | |
Canadian National Railway Co. (Þ) | | | 400,126 | | | | 34,123 | |
Canadian National Railway Co. | | | 52,700 | | | | 4,497 | |
Cenovus Energy, Inc. | | | 78,600 | | | | 2,853 | |
Crescent Point Energy Corp. | | | 15,300 | | | | 669 | |
| | | | |
| | 104 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Crew Energy, Inc. (Æ) | | | 157,010 | | | | 1,113 | |
Dollarama, Inc. (Ñ) | | | 13,400 | | | | 746 | |
Eldorado Gold Corp. | | | 32,600 | | | | 462 | |
Enerplus Corp. (Ñ) | | | 7,300 | | | | 135 | |
Finning International, Inc. (Ñ) | | | 156,664 | | | | 4,377 | |
Goldcorp, Inc. (Æ) | | | 110,652 | | | | 4,234 | |
Goldcorp, Inc. | | | 39,500 | | | | 1,513 | |
Great-West Lifeco, Inc. (Ñ) | | | 12,900 | | | | 327 | |
Imax Corp. (Æ)(Ñ) | | | 178,863 | | | | 4,287 | |
Imperial Oil, Ltd. (Ñ) | | | 62,300 | | | | 2,900 | |
Inmet Mining Corp. | | | 46,300 | | | | 2,547 | |
Intact Financial Corp. (Ñ) | | | 110,305 | | | | 7,122 | |
Ivanhoe Mines, Ltd. (Æ)(Ñ) | | | 9,900 | | | | 116 | |
Kinross Gold Corp. | | | 506,500 | | | | 4,533 | |
Magna International, Inc. Class A | | | 336,600 | | | | 14,753 | |
Manulife Financial Corp. | | | 232,700 | | | | 3,182 | |
Methanex Corp. | | | 27,600 | | | | 972 | |
New Gold, Inc. (Æ) | | | 246,750 | | | | 2,248 | |
Nexen, Inc. | | | 293,300 | | | | 5,675 | |
Niko Resources, Ltd. (Ñ) | | | 1,800 | | | | 76 | |
Pacific Rubiales Energy Corp. | | | 197,382 | | | | 5,663 | |
Penn West Petroleum, Ltd. (Ñ) | | | 18,900 | | | | 324 | |
Power Corp. of Canada | | | 16,300 | | | | 451 | |
Precision Drilling Corp. (Æ) | | | 355,871 | | | | 3,278 | |
Progress Energy Resources Corp. (Ñ) | | | 10,000 | | | | 110 | |
RioCan Real Estate Investment Trust (ö) | | | 6,400 | | | | 176 | |
Rogers Communications, Inc. Class B | | | 82,900 | | | | 3,094 | |
Royal Bank of Canada - GDR (Ñ) | | | 70,500 | | | | 4,074 | |
Sherritt International Corp. | | | 267,500 | | | | 1,530 | |
Silver Wheaton Corp. | | | 13,800 | | | | 421 | |
Sino-Forest Corp. (Æ)(Ñ)(Å) | | | 383,000 | | | | 4 | |
Suncor Energy, Inc. | | | 641,250 | | | | 21,183 | |
SXC Health Solutions Corp. (Æ) | | | 41,912 | | | | 3,796 | |
TELUS Corp. Class A (Ñ) | | | 6,000 | | | | 352 | |
Tim Hortons, Inc. (Ñ) | | | 87,303 | | | | 5,039 | |
TMX Group, Inc. | | | 19,500 | | | | 890 | |
Toronto-Dominion Bank (The) | | | 182,688 | | | | 15,440 | |
TransCanada Corp. (Ñ) | | | 34,000 | | | | 1,496 | |
Trilogy Energy Corp. | | | 63,071 | | | | 1,744 | |
Valeant Pharmaceuticals International, Inc. (Æ) | | | 14,600 | | | | 812 | |
Yamana Gold, Inc. | | | 36,800 | | | | 540 | |
| | | | | | | | |
| | | | | | | 205,619 | |
| | | | | | | | |
| | |
| Cayman Islands - 1.0% | | | | | | | | |
Baidu, Inc. - ADR (Æ) | | | 131,072 | | | | 17,393 | |
Belle International Holdings, Ltd. Class A | | | 4,310,000 | | | | 8,455 | |
Chaoda Modern Agriculture Holdings, Ltd. (Æ)(Ñ)(Å) | | | 12,120,000 | | | | 703 | |
Golden Eagle Retail Group, Ltd. (Ñ) | | | 643,360 | | | | 1,687 | |
Hengan International Group Co., Ltd. | | | 382,000 | | | | 4,045 | |
Herbalife, Ltd. | | | 21,851 | | | | 1,537 | |
Melco Crown Entertainment, Ltd. - ADR (Æ) | | | 286,590 | | | | 4,448 | |
SA SA International Holdings, Ltd. (Ñ) | | | 2,776,520 | | | | 1,729 | |
Sands China, Ltd. | | | 600,677 | | | | 2,361 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Sany Heavy Equipment International Holdings Co., Ltd. (Ñ) | | | 1,954,458 | | | | 1,509 | |
Want Want China Holdings, Ltd. | | | 2,041,872 | | | | 2,505 | |
Wynn Macau, Ltd. (Ñ) | | | 255,200 | | | | 819 | |
| | | | | | | | |
| | | | | | | 47,191 | |
| | | | | | | | |
| | |
| Chile - 0.2% | | | | | | | | |
Sociedad Quimica y Minera de Chile SA - ADR | | | 158,310 | | | | 9,228 | |
| | | | | | | | |
| | |
| China - 0.5% | | | | | | | | |
Anhui Conch Cement Co., Ltd. Class H (Ñ) | | | 309,803 | | | | 1,038 | |
China Life Insurance Co., Ltd. Class H | | | 715,473 | | | | 1,937 | |
China Shenhua Energy Co., Ltd. Class H | | | 989,000 | | | | 4,391 | |
China South Locomotive and Rolling Stock Corp. (Ñ) | | | 2,269,968 | | | | 1,831 | |
Huaneng Power International, Inc.
Class H (Ñ) | | | 22,668,000 | | | | 13,440 | |
Industrial & Commercial Bank of China Class H | | | 4,928,000 | | | | 3,290 | |
| | | | | | | | |
| | | | | | | 25,927 | |
| | | | | | | | |
| | |
| Curacao - 0.0% | | | | | | | | |
Hunter Douglas NV (Å) | | | 3,754 | | | | 161 | |
| | | | | | | | |
| | |
| Czech Republic - 0.1% | | | | | | | | |
Komercni Banka AS (Ñ) | | | 28,371 | | | | 5,217 | |
| | | | | | | | |
| | |
| Denmark - 1.1% | | | | | | | | |
Christian Hansen Holding A/S | | | 109,220 | | | | 3,028 | |
Coloplast A/S Class B | | | 16,856 | | | | 3,119 | |
Danske Bank A/S (Æ) | | | 455,957 | | | | 7,403 | |
DSV A/S | | | 32,117 | | | | 731 | |
FLSmidth & Co. A/S | | | 33,610 | | | | 2,362 | |
Novo Nordisk A/S Class B | | | 219,788 | | | | 32,420 | |
Novozymes A/S Class B | | | 76,770 | | | | 2,013 | |
| | | | | | | | |
| | | | | | | 51,076 | |
| | | | | | | | |
| | |
| Finland - 0.5% | | | | | | | | |
Metso OYJ | | | 96,582 | | | | 4,142 | |
Nokia OYJ | | | 1,843,951 | | | | 6,625 | |
Nokian Renkaat OYJ | | | 74,009 | | | | 3,510 | |
Stora Enso OYJ Class R | | | 1,280,953 | | | | 8,732 | |
Wartsila OYJ Abp Class B (Ñ) | | | 45,537 | | | | 1,843 | |
| | | | | | | | |
| | | | | | | 24,852 | |
| | | | | | | | |
| | |
| France - 7.7% | | | | | | | | |
Air Liquide SA Class A | | | 95,420 | | | | 12,273 | |
Alcatel-Lucent - ADR (Æ) | | | 2,655,622 | | | | 4,092 | |
Arkema SA | | | 37,260 | | | | 3,300 | |
AXA SA | | | 476,367 | | | | 6,747 | |
BNP Paribas SA | | | 184,286 | | | | 7,404 | |
Capital Gemini SA | | | 401,075 | | | | 15,656 | |
Carrefour SA | | | 615,227 | | | | 12,358 | |
Christian Dior SA (Ñ) | | | 49,607 | | | | 7,476 | |
Cie de St.-Gobain (Ñ) | | | 346,119 | | | | 14,499 | |
| | |
| Russell International Developed Markets Fund | | 105 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Cie Generale de Geophysique - Veritas (Æ) | | | 50,756 | | | | 1,445 | |
Cie Generale des Etablissements Michelin Class B | | | 29,370 | | | | 2,194 | |
Cie Generale d’Optique Essilor International SA | | | 101,847 | | | | 8,971 | |
Credit Agricole SA | | | 652,993 | | | | 3,356 | |
Danone | | | 186,176 | | | | 13,098 | |
Dassault Systemes SA | | | 101,762 | | | | 9,876 | |
France Telecom SA - ADR | | | 1,620,411 | | | | 22,168 | |
GDF Suez (Æ) | | | 55,671 | | | | — | |
Hermes International | | | 5,252 | | | | 1,858 | |
Lagardere SCA | | | 217,506 | | | | 6,593 | |
Legrand SA - ADR | | | 256,109 | | | | 8,645 | |
LVMH Moet Hennessy Louis Vuitton SA - ADR(Ñ) | | | 98,491 | | | | 16,316 | |
Metropole Television SA | | | 82,332 | | | | 1,264 | |
Natixis | | | 895,944 | | | | 2,730 | |
Pernod-Ricard SA | | | 165,786 | | | | 17,207 | |
PPR | | | 14,637 | | | | 2,448 | |
Publicis Groupe SA - ADR | | | 101,707 | | | | 5,245 | |
Remy Cointreau SA | | | 50,165 | | | | 5,591 | |
Rexel SA Class H | | | 40,796 | | | | 853 | |
Safran SA | | | 34,020 | | | | 1,261 | |
Sanofi - ADR | | | 483,692 | | | | 36,918 | |
Schneider Electric SA | | | 366,989 | | | | 22,545 | |
Societe BIC SA | | | 19,431 | | | | 2,140 | |
Societe Generale SA | | | 252,303 | | | | 5,965 | |
Sodexo | | | 10,838 | | | | 863 | |
Technip SA | | | 57,788 | | | | 6,535 | |
Thales SA | | | 17,892 | | | | 620 | |
Total SA | | | 850,099 | | | | 40,589 | |
Unibail-Rodamco SE (ö) | | | 32,786 | | | | 6,128 | |
Valeo SA | | | 69,252 | | | | 3,401 | |
Vallourec SA | | | 109,405 | | | | 6,579 | |
Vinci SA | | | 217,061 | | | | 10,056 | |
Zodiac Aerospace | | | 49,904 | | | | 5,492 | |
| | | | | | | | |
| | | | | | | 362,755 | |
| | | | | | | | |
| | |
| Germany - 6.5% | | | | | | | | |
Aareal Bank AG (Æ) | | | 30,886 | | | | 596 | |
Adidas AG | | | 206,120 | | | | 17,189 | |
Allianz SE | | | 29,842 | | | | 3,325 | |
BASF SE (Ñ) | | | 199,509 | | | | 16,424 | |
Bayer AG (Ñ) | | | 411,766 | | | | 29,002 | |
Bayerische Motoren Werke AG | | | 219,780 | | | | 20,891 | |
Beiersdorf AG (Æ)(Ñ) | | | 154,783 | | | | 10,859 | |
Bilfinger Berger SE | | | 25,690 | | | | 2,350 | |
Continental AG (Ñ) | | | 17,117 | | | | 1,659 | |
Daimler AG | | | 103,170 | | | | 5,704 | |
Deutsche Bank AG | | | 140,320 | | | | 6,105 | |
Deutsche Boerse AG | | | 233,238 | | | | 14,644 | |
Deutsche Post AG | | | 187,436 | | | | 3,498 | |
Deutsche Telekom AG | | | 1,453,290 | | | | 16,384 | |
E.ON AG (Ñ) | | | 390,800 | | | | 8,854 | |
Fresenius SE & Co. KGaA | | | 5,399 | | | | 539 | |
Hannover Rueckversicherung AG (Ñ) | | | 37,031 | | | | 2,238 | |
HeidelbergCement AG (Ñ) | | | 61,681 | | | | 3,391 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Henkel AG & Co. KGaA | | | 118,655 | | | | 7,263 | |
Infineon Technologies AG - ADR | | | 891,717 | | | | 8,878 | |
Kabel Deutschland Holding AG (Æ) | | | 88,273 | | | | 5,562 | |
Linde AG | | | 150,041 | | | | 25,680 | |
MAN SE | | | 4,669 | | | | 590 | |
Merck KGaA (Ñ) | | | 110,635 | | | | 12,155 | |
RWE AG (Ñ) | | | 488,079 | | | | 20,981 | |
SAP AG - ADR | | | 370,067 | | | | 24,537 | |
Siemens AG | | | 268,900 | | | | 24,905 | |
Software AG (Ñ) | | | 35,495 | | | | 1,240 | |
Volkswagen AG | | | 78,310 | | | | 13,367 | |
| | | | | | | | |
| | | | | | | 308,810 | |
| | | | | | | | |
| | |
| Hong Kong - 1.9% | | | | | | | | |
AIA Group, Ltd. | | | 5,140,200 | | | | 18,285 | |
Cheung Kong Holdings, Ltd. | | | 106,000 | | | | 1,410 | |
China Mobile, Ltd. | | | 1,325,500 | | | | 14,684 | |
China Unicom Hong Kong, Ltd. (Ñ) | | | 11,130,000 | | | | 19,796 | |
CLP Holdings, Ltd. | | | 132,500 | | | | 1,135 | |
CNOOC, Ltd. | | | 6,485,650 | | | | 13,826 | |
Emperor Watch & Jewellery, Ltd. (Ñ) | | | 7,764,892 | | | | 1,101 | |
Hang Lung Group, Ltd. | | | 37,462 | | | | 235 | |
Hang Lung Properties, Ltd. - ADR | | | 2,516,000 | | | | 9,307 | |
Henderson Land Development Co., Ltd. | | | 74,000 | | | | 421 | |
HKT Trust/HKT, Ltd. (Æ) | | | 7,694 | | | | 6 | |
Hong Kong & China Gas Co., Ltd. | | | 360,800 | | | | 923 | |
Hong Kong Exchanges and Clearing, Ltd. (Ñ) | | | 47,254 | | | | 756 | |
Hopewell Holdings, Ltd. | | | 161,000 | | | | 433 | |
Hutchison Whampoa, Ltd. | | | 78,000 | | | | 750 | |
Hysan Development Co., Ltd. | | | 175,000 | | | | 793 | |
Link REIT (The) (ö) | | | 95,500 | | | | 398 | |
New World Development Co., Ltd. | | | 175,000 | | | | 218 | |
PCCW, Ltd. | | | 177,000 | | | | 66 | |
Power Assets Holdings, Ltd. | | | 55,500 | | | | 415 | |
Sino Land Co., Ltd. | | | 384,000 | | | | 663 | |
SJM Holdings, Ltd. | | | 395,000 | | | | 867 | |
Sun Hung Kai Properties, Ltd. | | | 75,333 | | | | 909 | |
Swire Pacific, Ltd. Class A | | | 29,821 | | | | 352 | |
Television Broadcasts, Ltd. | | | 91,334 | | | | 671 | |
Wheelock & Co., Ltd. | | | 200,068 | | | | 676 | |
Wing Hang Bank, Ltd. | | | 8,000 | | | | 85 | |
| | | | | | | | |
| | | | | | | 89,181 | |
| | | | | | | | |
| | |
| India - 0.3% | | | | | | | | |
ICICI Bank, Ltd. | | | 375,396 | | | | 6,285 | |
Infosys, Ltd. | | | 78,109 | | | | 3,649 | |
Tata Motors, Ltd. - ADR (Ñ) | | | 64,480 | | | | 1,919 | |
| | | | | | | | |
| | | | | | | 11,853 | |
| | | | | | | | |
| | |
| Indonesia - 0.2% | | | | | | | | |
Bank Rakyat Indonesia | | | 8,851,000 | | | | 6,404 | |
Gudang Garam Tbk PT | | | 432,028 | | | | 2,783 | |
| | | | | | | | |
| | | | | | | 9,187 | |
| | | | | | | | |
| | | | |
| | 106 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Ireland - 0.8% | | | | | | | | |
Accenture PLC Class A | | | 265,512 | | | | 17,245 | |
Covidien PLC | | | 100,200 | | | | 5,534 | |
CRH PLC | | | 423,185 | | | | 8,550 | |
Elan Corp. PLC - ADR (Æ) | | | 109,400 | | | | 1,509 | |
Jazz Pharmaceuticals PLC (Æ) | | | 37,410 | | | | 1,909 | |
Ryanair Holdings PLC - ADR (Æ) | | | 143,895 | | | | 4,845 | |
| | | | | | | | |
| | | | | | | 39,592 | |
| | | | | | | | |
| | |
| Israel - 1.2% | | | | | | | | |
Check Point Software Technologies, Ltd.(Æ)(Ñ) | | | 394,707 | | | | 22,944 | |
Teva Pharmaceutical Industries, Ltd. - ADR | | | 766,762 | | | | 35,072 | |
| | | | | | | | |
| | | | | | | 58,016 | |
| | | | | | | | |
| | |
| Italy - 2.1% | | | | | | | | |
Assicurazioni Generali SpA | | | 65,257 | | | | 889 | |
Azimut Holding SpA | | | 206,170 | | | | 2,025 | |
Davide Campari-Milano SpA | | | 306,260 | | | | 2,165 | |
Enel SpA | | | 2,465,600 | | | | 8,094 | |
ENI SpA - ADR | | | 1,563,184 | | | | 34,700 | |
Intesa Sanpaolo SpA | | | 8,089,201 | | | | 12,239 | |
Saipem SpA - ADR | | | 253,850 | | | | 12,540 | |
Salvatore Ferragamo Italia SpA (Æ) | | | 96,737 | | | | 2,365 | |
Telecom Italia SpA | | | 20,775,667 | | | | 21,084 | |
UniCredit SpA (Æ) | | | 250,234 | | | | 996 | |
| | | | | | | | |
| | | | | | | 97,097 | |
| | | | | | | | |
| | |
| Japan - 15.3% | | | | | | | | |
Aeon Co., Ltd. (Ñ) | | | 130,800 | | | | 1,710 | |
Ajinomoto Co., Inc. | | | 150,000 | | | | 1,941 | |
Anritsu Corp (Æ)(Ñ) | | | 313,000 | | | | 4,116 | |
Asahi Glass Co., Ltd. | | | 109,000 | | | | 864 | |
Asahi Kasei Corp. | | | 280,000 | | | | 1,740 | |
Astellas Pharma, Inc. | | | 493,800 | | | | 20,070 | |
Brother Industries, Ltd. | | | 32,400 | | | | 439 | |
Canon, Inc. | | | 1,213,413 | | | | 55,777 | |
Central Japan Railway Co. | | | 323 | | | | 2,686 | |
Chiyoda Corp. | | | 488,000 | | | | 5,923 | |
Cosmo Oil Co., Ltd. | | | 205,000 | | | | 570 | |
Credit Saison Co., Ltd. | | | 36,600 | | | | 790 | |
Dai Nippon Printing Co., Ltd. (Ñ) | | | 1,059,000 | | | | 9,457 | |
Daicel Chemical Industries, Ltd. | | | 228,000 | | | | 1,451 | |
Dai-ichi Life Insurance Co., Ltd. (The) | | | 5,300 | | | | 6,718 | |
Daito Trust Construction Co., Ltd. | | | 63,500 | | | | 5,734 | |
Daiwa House Industry Co., Ltd. | | | 20,000 | | | | 259 | |
Denso Corp. | | | 296,500 | | | | 9,689 | |
FANUC Corp. | | | 194,182 | | | | 33,053 | |
Fast Retailing Co., Ltd. | | | 37,000 | | | | 8,309 | |
Fuji Heavy Industries, Ltd. | | | 223,000 | | | | 1,712 | |
Fuji Media Holdings, Inc. | | | 294 | | | | 498 | |
FUJIFILM Holdings Corp. | | | 473,100 | | | | 10,115 | |
Gree, Inc. (Ñ) | | | 33,700 | | | | 908 | |
Hachijuni Bank, Ltd. (The) | | | 754,000 | | | | 4,118 | |
Hino Motors, Ltd. (Ñ) | | | 160,000 | | | | 1,142 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Hitachi High-Technologies Corp. | | | 34,300 | | | | 867 | |
Honda Motor Co., Ltd. | | | 700,601 | | | | 25,413 | |
Hoya Corp. | | | 843,600 | | | | 19,442 | |
Inpex Corp. | | | 1,713 | | | | 11,371 | |
Isuzu Motors, Ltd. | | | 1,143,000 | | | | 6,571 | |
ITOCHU Corp. | | | 204,900 | | | | 2,325 | |
J Front Retailing Co., Ltd. | | | 80,000 | | | | 413 | |
Japan Real Estate Investment Corp. Class A (ö) | | | 18 | | | | 160 | |
Japan Retail Fund Investment Corp. Class A (ö) | | | 66 | | | | 105 | |
Japan Tobacco, Inc. | | | 1,511 | | | | 8,393 | |
JGC Corp. | | | 96,000 | | | | 2,780 | |
JTEKT Corp. | | | 141,500 | | | | 1,565 | |
Kao Corp. | | | 708,200 | | | | 19,044 | |
KDDI Corp. | | | 926 | | | | 6,089 | |
Keyence Corp. | | | 19,300 | | | | 4,583 | |
Kinden Corp. | | | 38,000 | | | | 264 | |
Kobe Steel, Ltd. | | | 437,000 | | | | 629 | |
Koito Manufacturing Co., Ltd. | | | 30,000 | | | | 466 | |
Komatsu, Ltd. | | | 62,913 | | | | 1,824 | |
Konami Corp. | | | 57,400 | | | | 1,675 | |
Konica Minolta Holdings, Inc. | | | 206,500 | | | | 1,692 | |
Kubota Corp. | | | 402,000 | | | | 3,907 | |
Kuraray Co., Ltd. | | | 186,500 | | | | 2,672 | |
Lawson, Inc. (Ñ) | | | 138,700 | | | | 9,190 | |
M3, Inc. (Ñ) | | | 496 | | | | 2,317 | |
Mabuchi Motor Co., Ltd. (Ñ) | | | 289,600 | | | | 12,206 | |
Makita Corp. | | | 90,200 | | | | 3,491 | |
Marubeni Corp. | | | 1,236,000 | | | | 8,638 | |
Miraca Holdings, Inc. | | | 33,300 | | | | 1,316 | |
Mitsubishi Corp. | | | 32,400 | | | | 707 | |
Mitsubishi Electric Corp. | | | 217,000 | | | | 1,922 | |
Mitsubishi Estate Co., Ltd. | | | 45,000 | | | | 803 | |
Mitsubishi Heavy Industries, Ltd. | | | 283,000 | | | | 1,290 | |
Mitsubishi UFJ Financial Group, Inc. | | | 3,103,300 | | | | 15,042 | |
Mitsubishi UFJ Lease & Finance Co., Ltd. | | | 30,010 | | | | 1,252 | |
Mitsui & Co., Ltd. | | | 59,400 | | | | 933 | |
Mitsui Chemicals, Inc. | | | 302,000 | | | | 874 | |
Mitsui Fudosan Co., Ltd. | | | 40,000 | | | | 740 | |
Mizuho Financial Group, Inc. | | | 722,600 | | | | 1,149 | |
MS&AD Insurance Group Holdings | | | 647,900 | | | | 12,035 | |
Nabtesco Corp. | | | 93,321 | | | | 2,013 | |
Namco Bandai Holdings, Inc. | | | 76,700 | | | | 1,103 | |
NHK Spring Co., Ltd. | | | 127,000 | | | | 1,336 | |
Nikon Corp. | | | 315,100 | | | | 9,444 | |
Nintendo Co., Ltd. | | | 147,446 | | | | 20,130 | |
Nippon Building Fund, Inc. Class A (ö) | | | 20 | | | | 191 | |
Nippon Electric Glass Co., Ltd. | | | 96,000 | | | | 784 | |
Nippon Telegraph & Telephone Corp. | | | 21,200 | | | | 963 | |
Nissan Motor Co., Ltd. | | | 1,202,300 | | | | 12,589 | |
Nitori Holdings Co., Ltd. | | | 50,700 | | | | 4,667 | |
Nitto Denko Corp. | | | 33,000 | | | | 1,368 | |
NSK, Ltd. | | | 104,000 | | | | 722 | |
NTT DoCoMo, Inc. - ADR (Ñ) | | | 16,729 | | | | 286 | |
NTT DoCoMo, Inc. | | | 12,380 | | | | 21,119 | |
ORIX Corp. (Ñ) | | | 75,060 | | | | 7,220 | |
| | |
| Russell International Developed Markets Fund | | 107 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Osaka Gas Co., Ltd. | | | 366,000 | | | | 1,481 | |
Rakuten, Inc. | | | 8,379 | | | | 9,340 | |
Resona Holdings, Inc. | | | 214,800 | | | | 917 | |
Rohm Co., Ltd. | | | 87,900 | | | | 3,985 | |
Sankyo Co., Ltd. | | | 156,000 | | | | 7,542 | |
Secom Co., Ltd. | | | 193,600 | | | | 9,214 | |
Sega Sammy Holdings, Inc. | | | 280,100 | | | | 5,876 | |
Seiko Epson Corp. (Ñ) | | | 48,500 | | | | 654 | |
Seino Holdings Corp. | | | 76,000 | | | | 528 | |
Sekisui Chemical Co., Ltd. | | | 167,000 | | | | 1,506 | |
Sekisui House, Ltd. | | | 21,000 | | | | 196 | |
Seven & I Holdings Co., Ltd. | | | 1,339,200 | | | | 40,642 | |
Shin-Etsu Chemical Co., Ltd. | | | 609,625 | | | | 35,429 | |
Shinsei Bank, Ltd. | | | 879,000 | | | | 1,145 | |
Shiseido Co., Ltd. | | | 560,700 | | | | 9,846 | |
Showa Denko KK | | | 289,000 | | | | 648 | |
Sony Corp. | | | 50,600 | | | | 834 | |
Sugi Holdings Co., Ltd. - GDR | | | 24,878 | | | | 806 | |
Sumco Corp. (Æ)(Ñ) | | | 108,479 | | | | 1,166 | |
Sumitomo Corp. | | | 184,900 | | | | 2,640 | |
Sumitomo Heavy Industries, Ltd. | | | 250,000 | | | | 1,296 | |
Sumitomo Metal Industries, Ltd. | | | 134,000 | | | | 243 | |
Sumitomo Mitsui Financial Group, Inc. | | | 355,000 | | | | 11,490 | |
Sumitomo Mitsui Trust Holdings, Inc. | | | 1,479,000 | | | | 4,372 | |
Sumitomo Realty & Development Co., Ltd. | | | 347,000 | | | | 8,362 | |
Suruga Bank Ltd. | | | 362,000 | | | | 3,627 | |
Suzuki Motor Corp. | | | 96,300 | | | | 2,288 | |
Taisei Corp. | | | 189,000 | | | | 481 | |
Takeda Pharmaceutical Co., Ltd. | | | 375,500 | | | | 16,391 | |
THK Co., Ltd. | | | 785,900 | | | | 15,789 | |
Tohoku Electric Power Co., Inc. | | | 17,800 | | | | 187 | |
Tokai Rika Co., Ltd. | | | 2,300 | | | | 43 | |
Tokio Marine Holdings, Inc. | | | 576,400 | | | | 14,865 | |
Tokyo Electric Power Co., Inc. (The) (Æ) | | | 63,300 | | | | 159 | |
Tokyo Electron, Ltd. | | | 34,300 | | | | 1,914 | |
Tokyo Gas Co., Ltd. | | | 220,000 | | | | 1,064 | |
Tokyu Land Corp. | | | 22,000 | | | | 107 | |
Toray Industries, Inc. | | | 479,000 | | | | 3,702 | |
Toyota Motor Corp. | | | 637,100 | | | | 26,373 | |
Trend Micro, Inc. (Ñ) | | | 77,400 | | | | 2,360 | |
Ube Industries, Ltd. | | | 486,000 | | | | 1,248 | |
USS Co., Ltd. | | | 18,840 | | | | 1,919 | |
West Japan Railway Co. | | | 33,900 | | | | 1,395 | |
| | | | | | | | |
| | | | | | | 723,949 | |
| | | | | | | | |
| | |
| Jersey - 0.8% | | | | | | | | |
Delphi Automotive PLC (Æ) | | | 76,560 | | | | 2,350 | |
Glencore International PLC (Ñ) | | | 855,316 | | | | 5,908 | |
Petrofac, Ltd. | | | 380,401 | | | | 10,711 | |
Wolseley PLC | | | 221,889 | | | | 8,437 | |
WPP PLC | | | 920,757 | | | | 12,455 | |
| | | | | | | | |
| | | | | | | 39,861 | |
| | | | | | | | |
| | |
| Luxembourg - 0.5% | | | | | | | | |
APERAM | | | 54,396 | | | | 918 | |
Millicom International Cellular SA | | | 152,789 | | | | 16,231 | |
Subsea 7 SA (Æ) | | | 244,828 | | | | 6,344 | |
| | | | | | | | |
| | | | | | | 23,493 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Mauritius - 0.0% | | | | | | | | |
Golden Agri-Resources, Ltd. (Æ) | | | 752,000 | | | | 447 | |
| | | | | | | | |
| | |
| Mexico - 0.2% | | | | | | | | |
Grupo Financiero Banorte SAB de CV Class O | | | 773,100 | | | | 3,746 | |
Wal-Mart de Mexico SAB de CV | | | 1,635,700 | | | | 4,677 | |
| | | | | | | | |
| | | | | | | 8,423 | |
| | | | | | | | |
| | |
| Netherlands - 5.2% | | | | | | | | |
Aegon NV (Æ) | | | 2,653,275 | | | | 12,254 | |
Akzo Nobel NV | | | 527,863 | | | | 28,288 | |
ASML Holding NV Class G (Æ)(Ñ) | | | 393,098 | | | | 20,002 | |
European Aeronautic Defence and Space Co. NV | | | 362,579 | | | | 14,314 | |
Heineken NV (Ñ) | | | 331,075 | | | | 18,106 | |
ING Groep NV (Æ) | | | 3,798,723 | | | | 26,786 | |
Koninklijke Ahold NV (Ñ) | | | 1,544,390 | | | | 19,588 | |
Koninklijke DSM NV (Æ) | | | 55,025 | | | | 3,155 | |
Koninklijke Philips Electronics NV | | | 766,736 | | | | 15,224 | |
Koninklijke Vopak NV (Ñ) | | | 35,127 | | | | 2,264 | |
LyondellBasell Industries NV Class A | | | 250,355 | | | | 10,460 | |
Randstad Holding NV (Æ)(Ñ) | | | 195,697 | | | | 6,777 | |
Reed Elsevier NV (Æ)(Ñ) | | | 1,689,889 | | | | 19,929 | |
Sensata Technologies Holding NV (Æ) | | | 327,286 | | | | 10,395 | |
Unilever NV | | | 450,815 | | | | 15,438 | |
Wolters Kluwer NV | | | 630,653 | | | | 10,886 | |
Yandex NV Class A (Æ)(Ñ) | | | 173,330 | | | | 4,111 | |
Ziggo NV | | | 189,209 | | | | 5,951 | |
| | | | | | | | |
| | | | | | | 243,928 | |
| | | | | | | | |
| | |
| New Zealand - 0.1% | | | | | | | | |
Telecom Corp. of New Zealand, Ltd. | | | 1,194,897 | | | | 2,571 | |
| | | | | | | | |
| | |
| Norway - 0.2% | | | | | | | | |
Det Norske Oljeselskap ASA | | | 70,950 | | | | 1,020 | |
TE Connectivity, Ltd. | | | 429,110 | | | | 7,888 | |
| | | | | | | | |
| | | | | | | 8,908 | |
| | | | | | | | |
| | |
| Panama - 0.1% | | | | | | | | |
Copa Holdings SA Class A | | | 86,592 | | | | 7,041 | |
| | | | | | | | |
| | |
| Papua New Guinea - 0.1% | | | | | | | | |
Oil Search, Ltd. | | | 487,729 | | | | 3,735 | |
| | | | | | | | |
| | |
| Philippines - 0.1% | | | | | | | | |
Metropolitan Bank & Trust - ADR | | | 1,163,860 | | | | 2,519 | |
| | | | | | | | |
| | |
| Portugal - 0.1% | | | | | | | | |
Jeronimo Martins SGPS SA | | | 134,893 | | | | 2,527 | |
| | | | | | | | |
| | |
| Russia - 0.5% | | | | | | | | |
Gazprom OAO - ADR (Æ) | | | 1,065,312 | | | | 12,294 | |
NovaTek OAO - GDR | | | 23,418 | | | | 2,976 | |
Sberbank of Russia - ADR | | | 639,382 | | | | 8,280 | |
Uralkali OJSC - GDR | | | 36,657 | | | | 1,387 | |
| | | | | | | | |
| | | | | | | 24,937 | |
| | | | | | | | |
| | | | |
| | 108 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Singapore - 1.0% | | | | | | | | |
Ascendas Real Estate Investment Trust (Æ)(ö) | | | 77,000 | | | | 129 | |
Avago Technologies, Ltd. | | | 111,200 | | | | 3,834 | |
CapitaLand, Ltd. | | | 293,000 | | | | 696 | |
CapitaMall Trust Class A (ö) | | | 112,000 | | | | 163 | |
DBS Group Holdings, Ltd. | | | 121,000 | | | | 1,365 | |
Fraser and Neave, Ltd. | | | 151,000 | | | | 859 | |
Global Logistic Properties, Ltd. (Æ) | | | 101,000 | | | | 168 | |
Jardine Cycle & Carriage, Ltd. | | | 15,800 | | | | 602 | |
Keppel Corp., Ltd. - ADR | | | 749,000 | | | | 6,688 | |
Oversea-Chinese Banking Corp., Ltd. | | | 569,100 | | | | 4,121 | |
SembCorp Industries, Ltd. (Ñ) | | | 84,640 | | | | 1,338 | |
Singapore Exchange, Ltd. (Ñ) | | | 34,000 | | | | 184 | |
Singapore Press Holdings, Ltd. (Ñ) | | | 182,000 | | | | 584 | |
Singapore Technologies Engineering, Ltd. | | | 81,000 | | | | 197 | |
Singapore Telecommunications, Ltd. | | | 5,300,810 | | | | 13,364 | |
StarHub, Ltd. | | | 39,000 | | | | 101 | |
United Overseas Bank, Ltd. | | | 774,118 | | | | 12,042 | |
UOL Group, Ltd. | | | 22,000 | | | | 80 | |
Yangzijiang Shipbuilding Holdings, Ltd. | | | 441,000 | | | | 421 | |
| | | | | | | | |
| | | | | | | 46,936 | |
| | | | | | | | |
| | |
| South Africa - 0.4% | | | | | | | | |
AngloGold Ashanti, Ltd. | | | 220,872 | | | | 7,518 | |
Gold Fields, Ltd. - ADR | | | 386,415 | | | | 4,916 | |
Impala Platinum Holdings, Ltd. (Ñ) | | | 151,718 | | | | 2,953 | |
MTN Group, Ltd. | | | 179,098 | | | | 3,131 | |
| | | | | | | | |
| | | | | | | 18,518 | |
| | | | | | | | |
| | |
| South Korea - 1.5% | | | | | | | | |
Hyundai Mobis | | | 1,733 | | | | 472 | |
Hyundai Motor Co. | | | 11,184 | | | | 2,657 | |
KT Corp. - ADR | | | 944,900 | | | | 12,142 | |
LG Electronics, Inc. Class H (Ñ) | | | 35,178 | | | | 2,185 | |
Samsung Electronics Co., Ltd. | | | 35,463 | | | | 43,618 | |
Samsung Engineering Co., Ltd. | | | 50,821 | | | | 9,668 | |
Seegene, Inc. (Æ)(Ñ) | | | 45,100 | | | | 2,235 | |
| | | | | | | | |
| | | | | | | 72,977 | |
| | | | | | | | |
| | |
| Spain - 2.1% | | | | | | | | |
Amadeus IT Holding SA Class A | | | 530,717 | | | | 10,847 | |
Banco Bilbao Vizcaya Argentaria SA - ADR | | | 237,066 | | | | 1,602 | |
Banco Popular Espanol SA (Ñ) | | | 943,267 | | | | 3,015 | |
Banco Santander SA - ADR | | | 2,186,925 | | | | 13,664 | |
Banco Santander SA (Æ) | | | 46,164 | | | | 289 | |
Distribuidora Internacional de Alimentacion SA (Ñ) | | | 377,348 | | | | 1,808 | |
Endesa SA - ADR | | | 102,773 | | | | 1,841 | |
Iberdrola SA | | | 3,335,853 | | | | 15,530 | |
Inditex SA (Ñ) | | | 158,915 | | | | 14,294 | |
Indra Sistemas SA (Ñ) | | | 1,593,473 | | | | 16,533 | |
Red Electrica Corp. SA | | | 64,041 | | | | 2,788 | |
Tecnicas Reunidas SA (Æ)(Ñ) | | | 41,294 | | | | 1,608 | |
Telefonica SA - ADR | | | 1,052,103 | | | | 15,333 | |
| | | | | | | | |
| | | | | | | 99,152 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Sweden - 1.1% | | | | | | | | |
Atlas Copco AB Class A (Æ)(Ñ) | | | 267,271 | | | | 6,362 | |
Elekta AB Class B (Ñ) | | | 101,070 | | | | 5,128 | |
Hennes & Mauritz AB Class B | | | 141,650 | | | | 4,866 | |
Nordea Bank AB | | | 300,820 | | | | 2,668 | |
Sandvik AB (Ñ) | | | 393,521 | | | | 6,235 | |
Scania AB Class B | | | 52,254 | | | | 1,068 | |
SKF AB Class B (Ñ) | | | 79,861 | | | | 1,895 | |
Svenska Cellulosa AB Class B | | | 172,508 | | | | 2,734 | |
Swedbank AB Class A | | | 335,357 | | | | 5,553 | |
Swedish Match AB | | | 148,243 | | | | 6,026 | |
Tele2 AB Class B | | | 110,721 | | | | 2,110 | |
Telefonaktiebolaget LM Ericsson Class B | | | 790,237 | | | | 7,830 | |
TeliaSonera AB | | | 87,129 | | | | 583 | |
| | | | | | | | |
| | | | | | | 53,058 | |
| | | | | | | | |
| | |
| Switzerland - 7.1% | | | | | | | | |
ABB, Ltd. (Æ) | | | 532,882 | | | | 9,711 | |
ACE, Ltd. | | | 175,250 | | | | 13,314 | |
Cie Financiere Richemont SA | | | 149,591 | | | | 9,246 | |
Credit Suisse Group AG (Æ) | | | 261,221 | | | | 6,248 | |
Dufry AG (Æ) | | | 28,258 | | | | 3,832 | |
GAM Holding AG (Æ) | | | 475,446 | | | | 6,103 | |
Geberit AG (Æ) | | | 12,528 | | | | 2,649 | |
Givaudan SA (Æ) | | | 3,629 | | | | 3,522 | |
Julius Baer Group, Ltd. (Æ) | | | 639,642 | | | | 24,489 | |
Nestle SA | | | 1,018,564 | | | | 62,394 | |
Novartis AG | | | 955,104 | | | | 52,667 | |
Roche Holding AG | | | 209,204 | | | | 38,215 | |
Sonova Holding AG (Æ) | | | 36,079 | | | | 3,983 | |
Swatch Group AG (The) Class B | | | 30,944 | | | | 14,271 | |
Swiss Re AG (Æ) | | | 72,202 | | | | 4,526 | |
Syngenta AG | | | 55,446 | | | | 19,469 | |
TE Connectivity, Ltd. | | | 339,925 | | | | 12,394 | |
Temenos Group AG (Æ)(Ñ) | | | 97,676 | | | | 1,829 | |
Transocean, Ltd. | | | 94,224 | | | | 4,742 | |
UBS AG (Æ) | | | 1,685,300 | | | | 21,037 | |
Zurich Insurance Group AG (Æ) | | | 77,632 | | | | 18,988 | |
| | | | | | | | |
| | | | | | | 333,629 | |
| | | | | | | | |
| | |
| Taiwan - 0.9% | | | | | | | | |
Hon Hai Precision Industry Co., Ltd. | | | 5,023,344 | | | | 15,891 | |
Hon Hai Precision Industry Co., Ltd. - GDR | | | 657,812 | | | | 3,980 | |
HTC Corp. | | | 168,500 | | | | 2,556 | |
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR | | | 1,329,020 | | | | 20,706 | |
| | | | | | | | |
| | | | | | | 43,133 | |
| | | | | | | | |
| | |
| Thailand - 0.1% | | | | | | | | |
Kasikornbank PCL | | | 860,200 | | | | 4,574 | |
| | | | | | | | |
| | |
| United Kingdom - 18.5% | | | | | | | | |
Aggreko PLC | | | 135,949 | | | | 4,966 | |
Alert Care Corp. - ADR (Æ)(Ñ) | | | 95,360 | | | | 1,164 | |
Anglo American PLC | | | 54,931 | | | | 2,111 | |
Antofagasta PLC | | | 57,480 | | | | 1,102 | |
| | |
| Russell International Developed Markets Fund | | 109 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
ARM Holdings PLC | | | 1,237,521 | | | | 10,524 | |
AstraZeneca PLC - ADR (Æ) | | | 267,306 | | | | 11,711 | |
Aviva PLC | | | 1,532,339 | | | | 7,662 | |
Babcock International Group PLC | | | 48,651 | | | | 656 | |
BAE Systems PLC | | | 6,386,482 | | | | 30,596 | |
Barclays PLC | | | 5,794,790 | | | | 20,525 | |
BG Group PLC | | | 1,114,861 | | | | 26,244 | |
BHP Billiton PLC | | | 101,542 | | | | 3,254 | |
BP PLC | | | 6,659,028 | | | | 48,091 | |
British American Tobacco PLC | | | 257,383 | | | | 13,195 | |
British Land Co. PLC (ö) | | | 61,280 | | | | 487 | |
British Sky Broadcasting Group PLC | | | 1,424,401 | | | | 15,673 | |
BT Group PLC | | | 528,245 | | | | 1,807 | |
Burberry Group PLC | | | 698,838 | | | | 16,842 | |
Carillion PLC | | | 1,329,665 | | | | 6,295 | |
Cobham PLC | | | 261,306 | | | | 961 | |
Compass Group PLC | | | 3,216,677 | | | | 33,619 | |
Cookson Group PLC | | | 131,185 | | | | 1,545 | |
Diageo PLC | | | 1,052,066 | | | | 26,482 | |
Dialog Semiconductor PLC (Æ)(Ñ) | | | 91,568 | | | | 2,018 | |
Experian PLC | | | 1,405,392 | | | | 22,181 | |
GlaxoSmithKline PLC - ADR | | | 1,596,831 | | | | 36,929 | |
Hays PLC | | | 1,654,472 | | | | 2,398 | |
Home Retail Group PLC (Ñ) | | | 8,964,153 | | | | 15,508 | |
HSBC Holdings PLC | | | 4,859,370 | | | | 43,855 | |
Imperial Tobacco Group PLC | | | 302,167 | | | | 12,083 | |
Intermediate Capital Group PLC | | | 287,064 | | | | 1,196 | |
International Power PLC - ADR | | | 73,715 | | | | 499 | |
ITV PLC | | | 1,724,248 | | | | 2,342 | |
Johnson Matthey PLC Class H | | | 195,410 | | | | 7,338 | |
Kazakhmys PLC | | | 124,126 | | | | 1,734 | |
Kesa Electricals PLC (Ñ) | | | 337,030 | | | | 298 | |
Land Securities Group PLC (ö) | | | 40,123 | | | | 474 | |
Legal & General Group PLC | | | 1,154,785 | | | | 2,204 | |
Lloyds Banking Group PLC (Æ) | | | 5,433,800 | | | | 2,735 | |
Misys PLC (Æ) | | | 125,277 | | | | 709 | |
Mondi PLC | | | 275,949 | | | | 2,559 | |
National Grid PLC | | | 402,431 | | | | 4,346 | |
Next PLC | | | 55,717 | | | | 2,648 | |
Pearson PLC | | | 524,683 | | | | 9,877 | |
Persimmon PLC Class A | | | 396,429 | | | | 4,044 | |
Prudential PLC | | | 897,048 | | | | 10,984 | |
Reckitt Benckiser Group PLC | | | 168,434 | | | | 9,805 | |
Reed Elsevier PLC | | | 662,863 | | | | 5,486 | |
Rio Tinto PLC (Æ) | | | 263,517 | | | | 14,679 | |
Rolls-Royce Holdings PLC (Æ) | | | 1,375,332 | | | | 18,381 | |
Royal Bank of Scotland Group PLC - ADR (Æ) | | | 18,406,523 | | | | 7,250 | |
Royal Dutch Shell PLC Class A | | | 1,678,374 | | | | 59,707 | |
Royal Dutch Shell PLC Class B | | | 261,003 | | | | 9,516 | |
Royal Dutch Shell PLC - ADR (Ñ) | | | 183,500 | | | | 13,462 | |
SABMiller PLC - ADR | | | 49,892 | | | | 2,096 | |
Sage Group PLC (The) | | | 64,324 | | | | 299 | |
Shire PLC - ADR (Æ) | | | 811,111 | | | | 26,459 | |
Smith & Nephew PLC | | | 1,123,315 | | | | 11,057 | |
Smiths Group PLC | | | 362,206 | | | | 6,290 | |
Standard Chartered PLC | | | 1,538,679 | | | | 37,607 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Tate & Lyle PLC | | | 208,844 | | | | 2,340 | |
Telecity Group PLC (Æ) | | | 296,292 | | | | 3,880 | |
Tesco PLC | | | 7,334,225 | | | | 37,773 | |
Travis Perkins PLC | | | 1,242,130 | | | | 21,166 | |
Tullow Oil PLC | | | 717,677 | | | | 17,867 | |
Unilever PLC | | | 786,733 | | | | 26,851 | |
Vodafone Group PLC - ADR (Æ) | | | 13,003,447 | | | | 35,981 | |
Weir Group PLC (The) (Ñ) | | | 612,678 | | | | 16,953 | |
Whitbread PLC | | | 177,562 | | | | 5,553 | |
WM Morrison Supermarkets PLC | | | 355,448 | | | | 1,619 | |
Xstrata PLC | | | 570,136 | | | | 10,895 | |
| | | | | | | | |
| | | | | | | 877,443 | |
| | | | | | | | |
| | |
| United States - 1.4% | | | | | | | | |
Aegis Group plc (Æ) | | | 4,538,672 | | | | 13,089 | |
Citigroup, Inc. | | | 245,504 | | | | 8,111 | |
Lululemon Athletica, Inc. (Æ) | | | 33,620 | | | | 2,493 | |
Lululemon Athletica, Inc. Class 3 (Ñ) | | | 4,700 | | | | 349 | |
MercadoLibre, Inc. (Ñ) | | | 102,247 | | | | 9,891 | |
Newmont Mining Corp. | | | 274,200 | | | | 13,066 | |
News Corp. Class B | | | 134,600 | | | | 2,670 | |
Perrigo Co. | | | 40,667 | | | | 4,266 | |
Synthes, Inc. (Æ)(Þ) | | | 15,616 | | | | 2,693 | |
Wynn Resorts, Ltd. | | | 81,237 | | | | 10,837 | |
| | | | | | | | |
| | | | | | | 67,465 | |
| | | | | | | | |
|
| Virgin Islands, British - 0.1% | |
Arcos Dorados Holdings, Inc. Class A (Ñ) | | | 290,020 | | | | 5,183 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $4,086,576) | | | | | | | 4,338,170 | |
| | | | | | | | |
| | |
| Preferred Stocks - 0.3% | | | | | | | | |
| Brazil - 0.1% | | | | | | | | |
Usinas Siderurgicas de Minas Gerais SA (Æ) | | | 850,300 | | | | 4,871 | |
| | | | | | | | |
| | |
| Germany - 0.2% | | | | | | | | |
Hugo Boss AG | | | 26,551 | | | | 2,963 | |
Porsche Automobil Holding SE | | | 81,703 | | | | 4,987 | |
ProSiebenSat.1 Media AG Class A | | | 27,502 | | | | 698 | |
Volkswagen AG | | | 7,204 | | | | 1,365 | |
| | | | | | | | |
| | | | | | | 10,013 | |
| | | | | | | | |
| | |
| United Kingdom - 0.0% | | | | | | | | |
Rolls-Royce Holdings PLC Class C (Æ) | | | 145,785,192 | | | | 237 | |
| | | | | | | | |
| | |
Total Preferred Stocks
(cost $16,002) | | | | | | | 15,121 | |
| | | | | | | | |
| | |
| Warrants & Rights - 0.6% | | | | | | | | |
| Luxembourg - 0.1% | | | | | | | | |
UBS AG
2013 Warrants (Æ) | | | 52,665 | | | | 5,686 | |
| | | | | | | | |
| | |
| Switzerland - 0.2% | | | | | | | | |
Astra International Tbk PT
2013 Warrants (Æ) | | | 27,740 | | | | 2,792 | |
| | | | |
| | 110 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
ICICI Bank, Ltd.
2015 Warrants (Æ) | | | 256,220 | | | | 4,290 | |
Larsen & Toubro, Ltd.
2015 Warrants (Æ) | | | 44,873 | | | | 1,045 | |
| | | | | | | | |
| | | | | | | 8,127 | |
| | | | | | | | |
| United States - 0.3% | | | | | | | | |
Hon Hai Precision Industry Co., Ltd. (Þ) 2017 Warrants (Æ) | | | 1,569,500 | | | | 4,965 | |
JPMorgan Structured Notes
2016 Warrants (Æ) | | | 417,640 | | | | 5,814 | |
UBS AG
2013 Warrants (Æ) | | | 41,050 | | | | 4,512 | |
| | | | | | | | |
| | | | | | | 15,291 | |
| | | | | | | | |
| | |
Total Warrants & Rights
(cost $28,187) | | | | | | | 29,104 | |
| | | | | | | | |
| | |
| Short-Term Investments - 5.9% | | | | | | | | |
| United States - 5.9% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 276,706,661 | (¥) | | | 276,707 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $276,707) | | | | | | | 276,707 | |
| | | | | | | | |
| | |
| Other Securities - 6.7% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 3,457,907 | (¥) | | | 3,521 | |
Russell U.S. Cash Collateral Fund (×) | | | 312,992,538 | (¥) | | | 312,992 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $316,450) | | | | | | | 316,513 | |
| | | | | | | | |
| | |
Total Investments - 105.2%
(identified cost $4,723,922) | | | | | | | 4,975,615 | |
| | |
Other Assets and Liabilities,
Net - (5.2%) | | | | | | | (245,079 | ) |
| | | | | | | | |
| | |
| Net Assets -100.0% | | | | | | | 4,730,536 | |
| | | | | | | | |
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 | | 111 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | |
ASX SPI 200 Index Futures (Australia) | | | 180 | | | AUD | 19,786 | | | | 06/12 | | | | 630 | |
CAC 40 Index Futures (France) | | | 1,390 | | | EUR | 43,931 | | | | 05/12 | | | | (612 | ) |
DAX Index Futures (Germany) | | | 208 | | | EUR | 35,230 | | | | 06/12 | | | | (1,737 | ) |
EURO STOXX 50 Index Futures (EMU) | | | 1,830 | | | EUR | 41,340 | | | | 06/12 | | | | (4,037 | ) |
FTSE 100 Index Futures (UK) | | | 1,037 | | | GBP | 59,265 | | | | 06/12 | | | | (2,333 | ) |
FTSE MIB Index Futures (UK) | | | 219 | | | EUR | 15,717 | | | | 06/12 | | | | (2,944 | ) |
Hang Seng Index Futures (Hong Kong) | | | 63 | | | HKD | 65,961 | | | | 05/12 | | | | 171 | |
IBEX 35 Index Futures (Spain) | | | 39 | | | EUR | 2,680 | | | | 05/12 | | | | (59 | ) |
S&P TSE 60 Index Futures (Canada) | | | 199 | | | CAD | 27,796 | | | | 06/12 | | | | (175 | ) |
SGX MSCI Singapore Index Futures | | | 42 | | | SGD | 2,863 | | | | 05/12 | | | | 16 | |
TOPIX Index Futures (Japan) | | | 987 | | | JPY | 7,920,675 | | | | 06/12 | | | | (3,557 | ) |
| | | | |
| Short Positions | | | | | | | | | | | | | | | | |
AEX Index Futures (Netherlands) | | | 110 | | | EUR | 6,708 | | | | 05/12 | | | | 1 | |
ASX SPI 200 Index Futures (Australia) | | | 369 | | | AUD | 40,562 | | | | 06/12 | | | | (1,100 | ) |
Hang Seng Index Futures (Hong Kong) | | | 18 | | | HKD | 18,846 | | | | 05/12 | | | | (46 | ) |
OMX 30 Index Futures (Sweden) | | | 389 | | | SEK | 40,748 | | | | 05/12 | | | | (107 | ) |
S&P TSE 60 Index Futures (Canada) | | | 246 | | | CAD | 34,361 | | | | 06/12 | | | | 226 | |
Swiss Market Index Futures (Switzerland) | | | 365 | | | CHF | 22,167 | | | | 06/12 | | | | 104 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | (15,559 | ) |
| | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 112 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Bank of America | | USD | | | 18,151 | | | SEK | | 121,905 | | | 06/20/12 | | | | (49 | ) |
Bank of Montreal | | USD | | | 1,261 | | | HKD | | 9,783 | | | 06/20/12 | | | | — | |
Barclays Bank PLC | | CHF | | | 16,166 | | | USD | | 17,746 | | | 06/20/12 | | | | (75 | ) |
Brown Brothers Harriman & Co. | | USD | | | 45 | | | AUD | | 43 | | | 06/20/12 | | | | (1 | ) |
Brown Brothers Harriman & Co. | �� | USD | | | 3,103 | | | AUD | | 3,027 | | | 06/20/12 | | | | 35 | |
Brown Brothers Harriman & Co. | | USD | | | 16 | | | CAD | | 16 | | | 05/01/12 | | | | — | |
Brown Brothers Harriman & Co. | | USD | | | 240 | | | CAD | | 238 | | | 06/20/12 | | | | — | |
Brown Brothers Harriman & Co. | | USD | | | 1,404 | | | EUR | | 1,060 | | | 05/03/12 | | | | (1 | ) |
Brown Brothers Harriman & Co. | | AUD | | | 1,479 | | | USD | | 1,543 | | | 06/20/12 | | | | 9 | |
Brown Brothers Harriman & Co. | | AUD | | | 6,548 | | | USD | | 6,705 | | | 07/31/12 | | | | (56 | ) |
Brown Brothers Harriman & Co. | | CAD | | | 278 | | | USD | | 279 | | | 06/20/12 | | | | (2 | ) |
Brown Brothers Harriman & Co. | | EUR | | | 54 | | | USD | | 72 | | | 05/04/12 | | | | — | |
Brown Brothers Harriman & Co. | | EUR | | | 843 | | | USD | | 1,117 | | | 05/04/12 | | | | 1 | |
Brown Brothers Harriman & Co. | | GBP | | | 31 | | | USD | | 50 | | | 05/03/12 | | | | — | |
Brown Brothers Harriman & Co. | | GBP | | | 61 | | | USD | | 99 | | | 05/03/12 | | | | — | |
Brown Brothers Harriman & Co. | | JPY | | | 52,915 | | | USD | | 655 | | | 05/02/12 | | | | (8 | ) |
Brown Brothers Harriman & Co. | | NZD | | | 3,200 | | | USD | | 2,610 | | | 06/20/12 | | | | 2 | |
Brown Brothers Harriman & Co. | | NZD | | | 3,200 | | | USD | | 2,610 | | | 06/20/12 | | | | 2 | |
Brown Brothers Harriman & Co. | | NZD | | | 3,200 | | | USD | | 2,610 | | | 06/20/12 | | | | 2 | |
Brown Brothers Harriman & Co. | | NZD | | | 3,200 | | | USD | | 2,610 | | | 06/20/12 | | | | 2 | |
Brown Brothers Harriman & Co. | | NZD | | | 3,246 | | | USD | | 2,627 | | | 06/20/12 | | | | (18 | ) |
Citibank | | USD | | | 144 | | | AUD | | 140 | | | 06/20/12 | | | | 1 | |
Citibank | | USD | | | 1,023 | | | AUD | | 1,000 | | | 06/20/12 | | | | 14 | |
Citibank | | USD | | | 3,939 | | | EUR | | 3,000 | | | 06/20/12 | | | | 33 | |
Citibank | | USD | | | 3,787 | | | ILS | | 14,403 | | | 06/20/12 | | | | 30 | |
Citibank | | USD | | | 2,236 | | | JPY | | 179,743 | | | 06/20/12 | | | | 16 | |
Citibank | | USD | | | 2,237 | | | JPY | | 179,759 | | | 06/20/12 | | | | 15 | |
Citibank | | USD | | | 4,845 | | | JPY | | 395,819 | | | 06/20/12 | | | | 115 | |
Citibank | | USD | | | 1,770 | | | NZD | | 2,164 | | | 06/20/12 | | | | (6 | ) |
Citibank | | USD | | | 1,771 | | | NZD | | 2,164 | | | 06/20/12 | | | | (7 | ) |
Citibank | | USD | | | 1,817 | | | NZD | | 2,238 | | | 06/20/12 | | | | 7 | |
Citibank | | USD | | | 2,185 | | | NZD | | 2,683 | | | 06/20/12 | | | | 2 | |
Citibank | | USD | | | 2,787 | | | SGD | | 3,505 | | | 06/20/12 | | | | 46 | |
Citibank | | AUD | | | 700 | | | USD | | 717 | | | 06/20/12 | | | | (9 | ) |
Citibank | | CAD | | | 1,000 | | | USD | | 1,007 | | | 06/20/12 | | | | (4 | ) |
Citibank | | EUR | | | 1,500 | | | USD | | 1,985 | | | 06/20/12 | | | | (1 | ) |
Citibank | | GBP | | | 800 | | | USD | | 1,272 | | | 06/20/12 | | | | (25 | ) |
Citibank | | HKD | | | 1,500 | | | USD | | 193 | | | 06/20/12 | | | | — | |
Citibank | | JPY | | | 220,000 | | | USD | | 2,658 | | | 06/20/12 | | | | (99 | ) |
Citibank | | JPY | | | 509,159 | | | USD | | 6,112 | | | 06/20/12 | | | | (268 | ) |
Citibank | | NZD | | | 2,001 | | | USD | | 1,633 | | | 06/20/12 | | | | 2 | |
Citibank | | NZD | | | 3,228 | | | USD | | 2,614 | | | 06/20/12 | | | | (17 | ) |
Citibank | | NZD | | | 3,246 | | | USD | | 2,628 | | | 06/20/12 | | | | (18 | ) |
Commonwealth Bank of Australia | | USD | | | 2,980 | | | AUD | | 2,884 | | | 06/20/12 | | | | 10 | |
Commonwealth Bank of Australia | | USD | | | 4,555 | | | CAD | | 4,530 | | | 06/20/12 | | | | 26 | |
Commonwealth Bank of Australia | | USD | | | 14,722 | | | EUR | | 11,276 | | | 06/20/12 | | | | 207 | |
Commonwealth Bank of Australia | | USD | | | 6,725 | | | GBP | | 4,293 | | | 06/20/12 | | | | 240 | |
Commonwealth Bank of Australia | | USD | | | 8,291 | | | GBP | | 5,229 | | | 06/20/12 | | | | 193 | |
Commonwealth Bank of Australia | | USD | | | 1,261 | | | HKD | | 9,783 | | | 06/20/12 | | | | — | |
Commonwealth Bank of Australia | | USD | | | 6,933 | | | JPY | | 580,417 | | | 06/20/12 | | | | 340 | |
Commonwealth Bank of Australia | | USD | | | 6,064 | | | NZD | | 7,438 | | | 06/20/12 | | | | (2 | ) |
Commonwealth Bank of Australia | | AUD | | | 6,548 | | | USD | | 6,705 | | | 07/31/12 | | | | (56 | ) |
Commonwealth Bank of Australia | | EUR | | | 9,199 | | | USD | | 12,168 | | | 06/20/12 | | | | (10 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 113 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Commonwealth Bank of Australia | | JPY | | | 1,428,622 | | | USD | | 17,564 | | | 06/20/12 | | | | (337 | ) |
Credit Suisse First Boston | | USD | | | 33,191 | | | NOK | | 187,034 | | | 06/20/12 | | | | (571 | ) |
Credit Suisse First Boston | | USD | | | 18,153 | | | SEK | | 121,905 | | | 06/20/12 | | | | (51 | ) |
Credit Suisse First Boston | | AUD | | | 1,539 | | | USD | | 1,605 | | | 06/20/12 | | | | 10 | |
Deutsche Bank AG | | USD | | | 2,979 | | | AUD | | 2,884 | | | 06/20/12 | | | | 11 | |
Deutsche Bank AG | | USD | | | 4,558 | | | CAD | | 4,530 | | | 06/20/12 | | | | 23 | |
Deutsche Bank AG | | USD | | | 14,720 | | | EUR | | 11,276 | | | 06/20/12 | | | | 209 | |
Deutsche Bank AG | | USD | | | 6,725 | | | GBP | | 4,293 | | | 06/20/12 | | | | 240 | |
Deutsche Bank AG | | USD | | | 8,292 | | | GBP | | 5,229 | | | 06/20/12 | | | | 192 | |
Deutsche Bank AG | | USD | | | 1,261 | | | HKD | | 9,783 | | | 06/20/12 | | | | — | |
Deutsche Bank AG | | USD | | | ,577 | | | JPY | | 130,757 | | | 06/20/12 | | | | 61 | |
Deutsche Bank AG | | USD | | | ,598 | | | JPY | | 132,519 | | | 06/20/12 | | | | 62 | |
Deutsche Bank AG | | USD | | | 2,228 | | | JPY | | 182,123 | | | 06/20/12 | | | | 54 | |
Deutsche Bank AG | | USD | | | 2,242 | | | JPY | | 183,283 | | | 06/20/12 | | | | 55 | |
Deutsche Bank AG | | USD | | | 2,243 | | | JPY | | 183,283 | | | 06/20/12 | | | | 54 | |
Deutsche Bank AG | | USD | | | 6,933 | | | JPY | | 580,417 | | | 06/20/12 | | | | 339 | |
Deutsche Bank AG | | USD | | | 6,071 | | | NZD | | 7,438 | | | 06/20/12 | | | | (9 | ) |
Deutsche Bank AG | | AUD | | | 3,244 | | | USD | | 3,378 | | | 06/20/12 | | | | 16 | |
Deutsche Bank AG | | AUD | | | 6,548 | | | USD | | 6,705 | | | 07/31/12 | | | | (56 | ) |
Deutsche Bank AG | | EUR | | | 9,199 | | | USD | | 12,169 | | | 06/20/12 | | | | (10 | ) |
Deutsche Bank AG | | JPY | | | 198,325 | | | USD | | 2,440 | | | 06/20/12 | | | | (45 | ) |
Deutsche Bank AG | | JPY | | | 1,428,622 | | | USD | | 17,565 | | | 06/20/12 | | | | (336 | ) |
Deutsche Bank AG | | NZD | | | 3,200 | | | USD | | 2,610 | | | 06/20/12 | | | | 2 | |
HSBC Bank PLC | | USD | | | 2,979 | | | AUD | | 2,884 | | | 06/20/12 | | | | 11 | |
HSBC Bank PLC | | USD | | | 4,558 | | | CAD | | 4,530 | | | 06/20/12 | | | | 23 | |
HSBC Bank PLC | | USD | | | 14,722 | | | EUR | | 11,276 | | | 06/20/12 | | | | 207 | |
HSBC Bank PLC | | USD | | | 6,724 | | | GBP | | 4,293 | | | 06/20/12 | | | | 241 | |
HSBC Bank PLC | | USD | | | 8,294 | | | GBP | | 5,229 | | | 06/20/12 | | | | 190 | |
HSBC Bank PLC | | USD | | | 1,261 | | | HKD | | 9,783 | | | 06/20/12 | | | | — | |
HSBC Bank PLC | | USD | | | 6,937 | | | JPY | | 580,417 | | | 06/20/12 | | | | 336 | |
HSBC Bank PLC | | USD | | | 6,076 | | | NZD | | 7,438 | | | 06/20/12 | | | | (13 | ) |
HSBC Bank PLC | | EUR | | | 9,199 | | | USD | | 12,168 | | | 06/20/12 | | | | (10 | ) |
HSBC Bank PLC | | JPY | | | 1,428,622 | | | USD | | 17,558 | | | 06/20/12 | | | | (343 | ) |
JPMorgan Chase Bank | | USD | | | 512 | | | AUD | | 500 | | | 06/20/12 | | | | 7 | |
JPMorgan Chase Bank | | USD | | | 2,980 | | | AUD | | 2,884 | | | 06/20/12 | | | | 10 | |
JPMorgan Chase Bank | | USD | | | 1,011 | | | CAD | | 1,000 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 4,558 | | | CAD | | 4,530 | | | 06/20/12 | | | | 23 | |
JPMorgan Chase Bank | | USD | | | 1,324 | | | EUR | | 1,000 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 2,638 | | | EUR | | 2,000 | | | 06/20/12 | | | | 10 | |
JPMorgan Chase Bank | | USD | | | 14,722 | | | EUR | | 11,276 | | | 06/20/12 | | | | 207 | |
JPMorgan Chase Bank | | USD | | | 534 | | | GBP | | 330 | | | 05/01/12 | | | | 1 | |
JPMorgan Chase Bank | | USD | | | 1,613 | | | GBP | | 1,000 | | | 06/20/12 | | | | 9 | |
JPMorgan Chase Bank | | USD | | | 6,725 | | | GBP | | 4,293 | | | 06/20/12 | | | | 240 | |
JPMorgan Chase Bank | | USD | | | 8,293 | | | GBP | | 5,229 | | | 06/20/12 | | | | 191 | |
JPMorgan Chase Bank | | USD | | | 1,231 | | | JPY | | 100,000 | | | 06/20/12 | | | | 22 | |
JPMorgan Chase Bank | | USD | | | 6,932 | | | JPY | | 580,417 | | | 06/20/12 | | | | 341 | |
JPMorgan Chase Bank | | USD | | | 6,073 | | | NZD | | 7,438 | | | 06/20/12 | | | | (10 | ) |
JPMorgan Chase Bank | | AUD | | | 500 | | | USD | | 509 | | | 06/20/12 | | | | (9 | ) |
JPMorgan Chase Bank | | CAD | | | 500 | | | USD | | 502 | | | 06/20/12 | | | | (4 | ) |
JPMorgan Chase Bank | | DKK | | | 5,834 | | | USD | | 1,038 | | | 05/01/12 | | | | — | |
JPMorgan Chase Bank | | EUR | | | 1,500 | | | USD | | 1,972 | | | 06/20/12 | | | | (14 | ) |
JPMorgan Chase Bank | | EUR | | | 9,199 | | | USD | | 12,169 | | | 06/20/12 | | | | (10 | ) |
JPMorgan Chase Bank | | GBP | | | 436 | | | USD | | 708 | | | 05/01/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 114 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
JPMorgan Chase Bank | | GBP | | | 600 | | | USD | | 953 | | | 06/20/12 | | | | (20 | ) |
JPMorgan Chase Bank | | HKD | | | 2,000 | | | USD | | 258 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | JPY | | | 80,000 | | | USD | | 970 | | | 06/20/12 | | | | (33 | ) |
JPMorgan Chase Bank | | JPY | | | 1,428,622 | | | USD | | 17,574 | | | 06/20/12 | | | | (328 | ) |
Mellon Bank | | USD | | | 1,261 | | | HKD | | 9,783 | | | 06/20/12 | | | | — | |
Mellon Bank | | AUD | | | 400 | | | USD | | 407 | | | 06/20/12 | | | | (8 | ) |
Mellon Bank | | CAD | | | 800 | | | USD | | 796 | | | 06/20/12 | | | | (13 | ) |
Mellon Bank | | EUR | | | 3,000 | | | USD | | 3,925 | | | 06/20/12 | | | | (47 | ) |
Mellon Bank | | GBP | | | 1,000 | | | USD | | 1,586 | | | 06/20/12 | | | | (36 | ) |
Mellon Bank | | HKD | | | 1,000 | | | USD | | 129 | | | 06/20/12 | | | | — | |
Mellon Bank | | JPY | | | 75,000 | | | USD | | 930 | | | 06/20/12 | | | | (9 | ) |
Morgan Stanley & Co., Inc. | | USD | | | 1,202 | | | EUR | | 913 | | | 05/01/12 | | | | 6 | |
Morgan Stanley & Co., Inc. | | USD | | | 157 | | | GBP | | 97 | | | 05/01/12 | | | | — | |
Royal Bank of Canada | | USD | | | 2,978 | | | AUD | | 2,884 | | | 06/20/12 | | | | 12 | |
Royal Bank of Canada | | USD | | | 1,226 | | | CAD | | 1,218 | | | 06/20/12 | | | | 5 | |
Royal Bank of Canada | | USD | | | 4,555 | | | CAD | | 4,530 | | | 06/20/12 | | | | 25 | |
Royal Bank of Canada | | USD | | | 14,720 | | | EUR | | 11,276 | | | 06/20/12 | | | | 209 | |
Royal Bank of Canada | | USD | | | 6,723 | | | GBP | | 4,293 | | | 06/20/12 | | | | 242 | |
Royal Bank of Canada | | USD | | | 6,933 | | | JPY | | 580,417 | | | 06/20/12 | | | | 340 | |
Royal Bank of Canada | | USD | | | 1,738 | | | NZD | | 2,124 | | | 06/20/12 | | | | (6 | ) |
Royal Bank of Canada | | AUD | | | 4,314 | | | USD | | 4,459 | | | 06/20/12 | | | | (13 | ) |
Royal Bank of Canada | | CAD | | | 1,192 | | | USD | | 1,207 | | | 05/02/12 | | | | 1 | |
Royal Bank of Canada | | JPY | | | 198,118 | | | USD | | 2,437 | | | 06/20/12 | | | | (45 | ) |
Royal Bank of Canada | | NZD | | | 3,086 | | | USD | | 2,517 | | | 06/20/12 | | | | 2 | |
Royal Bank of Scotland PLC | | USD | | | 154 | | | CHF | | 140 | | | 06/20/12 | | | | 1 | |
Royal Bank of Scotland PLC | | USD | | | 3,022 | | | CHF | | 2,729 | | | 06/20/12 | | | | (14 | ) |
Royal Bank of Scotland PLC | | USD | | | 1,451 | | | EUR | | 1,099 | | | 06/20/12 | | | | 4 | |
Royal Bank of Scotland PLC | | USD | | | 3,813 | | | EUR | | 2,882 | | | 06/20/12 | | | | 3 | |
Royal Bank of Scotland PLC | | USD | | | 6,874 | | | EUR | | 5,151 | | | 06/20/12 | | | | (54 | ) |
Royal Bank of Scotland PLC | | USD | | | 19 | | | GBP | | 12 | | | 06/20/12 | | | | — | |
Royal Bank of Scotland PLC | | USD | | | 996 | | | GBP | | 625 | | | 06/20/12 | | | | 17 | |
Royal Bank of Scotland PLC | | USD | | | 17,359 | | | GBP | | 10,761 | | | 06/20/12 | | | | 100 | |
Royal Bank of Scotland PLC | | USD | | | 2,586 | | | NOK | | 14,700 | | | 06/20/12 | | | | (22 | ) |
Royal Bank of Scotland PLC | | USD | | | 6,403 | | | NOK | | 37,198 | | | 06/20/12 | | | | 84 | |
Royal Bank of Scotland PLC | | USD | | | 7,949 | | | NOK | | 45,949 | | | 06/20/12 | | | | 65 | |
Royal Bank of Scotland PLC | | USD | | | 4,100 | | | SEK | | 27,114 | | | 06/20/12 | | | | (73 | ) |
Royal Bank of Scotland PLC | | USD | | | 5,710 | | | SEK | | 38,489 | | | 06/20/12 | | | | 6 | |
Royal Bank of Scotland PLC | | USD | | | 9,505 | | | SEK | | 64,245 | | | 06/20/12 | | | | 35 | |
Royal Bank of Scotland PLC | | CHF | | | 1,013 | | | USD | | 1,105 | | | 06/20/12 | | | | (12 | ) |
Royal Bank of Scotland PLC | | CHF | | | 1,109 | | | USD | | 1,217 | | | 06/20/12 | | | | (6 | ) |
Royal Bank of Scotland PLC | | CHF | | | 1,397 | | | USD | | 1,524 | | | 06/20/12 | | | | (16 | ) |
Royal Bank of Scotland PLC | | EUR | | | 1,438 | | | USD | | 1,895 | | | 06/20/12 | | | | (9 | ) |
Royal Bank of Scotland PLC | | EUR | | | 1,483 | | | USD | | 1,943 | | | 06/20/12 | | | | (20 | ) |
Royal Bank of Scotland PLC | | EUR | | | 1,955 | | | USD | | 2,575 | | | 06/20/12 | | | | (13 | ) |
Royal Bank of Scotland PLC | | EUR | | | 2,272 | | | USD | | 3,033 | | | 06/20/12 | | | | 25 | |
Royal Bank of Scotland PLC | | EUR | | | 4,906 | | | USD | | 6,425 | | | 06/20/12 | | | | (71 | ) |
Royal Bank of Scotland PLC | | GBP | | | 459 | | | USD | | 727 | | | 06/20/12 | | | | (18 | ) |
Royal Bank of Scotland PLC | | GBP | | | 543 | | | USD | | 862 | | | 06/20/12 | | | | (19 | ) |
Royal Bank of Scotland PLC | | GBP | | | 1,044 | | | USD | | 1,633 | | | 06/20/12 | | | | (61 | ) |
Royal Bank of Scotland PLC | | GBP | | | 3,153 | | | USD | | 5,002 | | | 06/20/12 | | | | (114 | ) |
Royal Bank of Scotland PLC | | JPY | | | 24,909 | | | USD | | 308 | | | 05/01/12 | | | | (4 | ) |
Royal Bank of Scotland PLC | | NOK | | | 32,262 | | | USD | | 5,653 | | | 06/20/12 | | | | 26 | |
Royal Bank of Scotland PLC | | NOK | | | 59,599 | | | USD | | 10,540 | | | 06/20/12 | | | | 145 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 115 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Royal Bank of Scotland PLC | | NZD | | | 177 | | | USD | | 144 | | | 05/01/12 | | | | (1 | ) |
Royal Bank of Scotland PLC | | NZD | | | 1,997 | | | USD | | 1,629 | | | 06/20/12 | | | | 2 | |
Royal Bank of Scotland PLC | | SEK | | | 16,828 | | | USD | | 2,490 | | | 06/20/12 | | | | (9 | ) |
Royal Bank of Scotland PLC | | SEK | | | 29,176 | | | USD | | 4,289 | | | 06/20/12 | | | | (44 | ) |
State Street Bank & Trust Co. | | USD | | | 151 | | | AUD | | 147 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 516 | | | AUD | | 500 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 822 | | | AUD | | 800 | | | 06/20/12 | | | | 8 | |
State Street Bank & Trust Co. | | USD | | | 7,997 | | | AUD | | 7,586 | | | 06/20/12 | | | | (133 | ) |
State Street Bank & Trust Co. | | USD | | | 502 | | | BRL | | 954 | | | 05/03/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 205 | | | CAD | | 201 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 193 | | | CAD | | 192 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 605 | | | CAD | | 600 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 1,004 | | | CAD | | 1,000 | | | 06/20/12 | | | | 8 | |
State Street Bank & Trust Co. | | USD | | | 1,065 | | | CHF | | 974 | | | 06/20/12 | | | | 9 | |
State Street Bank & Trust Co. | | USD | | | 12 | | | DKK | | 69 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 42 | | | DKK | | 235 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 137 | | | DKK | | 776 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 1,290 | | | DKK | | 7,277 | | | 06/20/12 | | | | 5 | |
State Street Bank & Trust Co. | | USD | | | 1,043 | | | EUR | | 788 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 1,251 | | | EUR | | 944 | | | 05/02/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | USD | | | 229 | | | EUR | | 173 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 888 | | | EUR | | 674 | | | 06/20/12 | | | | 4 | |
State Street Bank & Trust Co. | | USD | | | 2,631 | | | EUR | | 2,000 | | | 06/20/12 | | | | 17 | |
State Street Bank & Trust Co. | | USD | | | 3,942 | | | EUR | | 3,000 | | | 06/20/12 | | | | 30 | |
State Street Bank & Trust Co. | | USD | | | 4,060 | | | EUR | | 3,091 | | | 06/20/12 | | | | 32 | |
State Street Bank & Trust Co. | | USD | | | 15 | | | GBP | | 9 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 427 | | | GBP | | 263 | | | 05/01/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 334 | | | GBP | | 206 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 1,025 | | | GBP | | 630 | | | 05/02/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | USD | | | 395 | | | GBP | | 246 | | | 06/20/12 | | | | 4 | |
State Street Bank & Trust Co. | | USD | | | 796 | | | GBP | | 500 | | | 06/20/12 | | | | 15 | |
State Street Bank & Trust Co. | | USD | | | 806 | | | GBP | | 500 | | | 06/20/12 | | | | 5 | |
State Street Bank & Trust Co. | | USD | | | 1,605 | | | GBP | | 1,000 | | | 06/20/12 | | | | 17 | |
State Street Bank & Trust Co. | | USD | | | — | | | HKD | | 1 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 22 | | | HKD | | 174 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 35 | | | HKD | | 270 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 49 | | | HKD | | 377 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 129 | | | HKD | | 1,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 258 | | | HKD | | 2,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 282 | | | HKD | | 2,192 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 322 | | | HKD | | 2,500 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 587 | | | HKD | | 4,555 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 14 | | | ILS | | 53 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 28 | | | ILS | | 103 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 52 | | | ILS | | 195 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 89 | | | ILS | | 340 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 101 | | | ILS | | 377 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 616 | | | JPY | | 50,000 | | | 06/20/12 | | | | 10 | |
State Street Bank & Trust Co. | | USD | | | 712 | | | JPY | | 57,982 | | | 06/20/12 | | | | 14 | |
State Street Bank & Trust Co. | | USD | | | 1,840 | | | JPY | | 150,000 | | | 06/20/12 | | | | 40 | |
State Street Bank & Trust Co. | | USD | | | 1,818 | | | NZD | | 2,238 | | | 06/20/12 | | | | 6 | |
State Street Bank & Trust Co. | | USD | | | 49 | | | SGD | | 62 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 62 | | | SGD | | 78 | | | 06/20/12 | | | | 1 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 116 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
State Street Bank & Trust Co. | | USD | | | 75 | | | SGD | | 95 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 140 | | | SGD | | 177 | | | 06/20/12 | | | | 3 | |
State Street Bank & Trust Co. | | USD | | | 165 | | | SGD | | 207 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | AUD | | | 100 | | | USD | | 105 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | AUD | | | 200 | | | USD | | 208 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | AUD | | | 1,367 | | | USD | | 1,432 | | | 06/20/12 | | | | 15 | |
State Street Bank & Trust Co. | | AUD | | | 6,629 | | | USD | | 6,787 | | | 07/31/12 | | | | (57 | ) |
State Street Bank & Trust Co. | | BRL | | | 97 | | | USD | | 51 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 46 | | | USD | | 46 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 79 | | | USD | | 80 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 192 | | | USD | | 193 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | CAD | | | 500 | | | USD | | 503 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | CAD | | | 861 | | | USD | | 867 | | | 06/20/12 | | | | (4 | ) |
State Street Bank & Trust Co. | | CHF | | | 168 | | | USD | | 185 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | CHF | | | 292 | | | USD | | 321 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | CHF | | | 928 | | | USD | | 1,024 | | | 05/03/12 | | | | 1 | |
State Street Bank & Trust Co. | | CHF | | | 1,498 | | | USD | | 1,637 | | | 06/20/12 | | | | (14 | ) |
State Street Bank & Trust Co. | | DKK | | | 21,690 | | | USD | | 3,864 | | | 05/02/12 | | | | 5 | |
State Street Bank & Trust Co. | | DKK | | | 183 | | | USD | | 33 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | DKK | | | 214 | | | USD | | 38 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | DKK | | | 264 | | | USD | | 47 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | DKK | | | 368 | | | USD | | 65 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | DKK | | | 830 | | | USD | | 147 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | DKK | | | 1,329 | | | USD | | 234 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | DKK | | | 21,817 | | | USD | | 3,884 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | EUR | | | 110 | | | USD | | 145 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 235 | | | USD | | 310 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | EUR | | | 30 | | | USD | | 39 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 63 | | | USD | | 83 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 914 | | | USD | | 1,211 | | | 05/03/12 | | | | 2 | |
State Street Bank & Trust Co. | | EUR | | | 35 | | | USD | | 46 | | | 05/04/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 35 | | | USD | | 46 | | | 05/04/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 1,000 | | | USD | | 1,309 | | | 06/20/12 | | | | (15 | ) |
State Street Bank & Trust Co. | | EUR | | | 1,000 | | | USD | | 1,317 | | | 06/20/12 | | | | (7 | ) |
State Street Bank & Trust Co. | | GBP | | | 5 | | | USD | | 9 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | GBP | | | 25 | | | USD | | 41 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | GBP | | | 1,098 | | | USD | | 1,783 | | | 05/02/12 | | | | 2 | |
State Street Bank & Trust Co. | | GBP | | | 200 | | | USD | | 316 | | | 06/20/12 | | | | (8 | ) |
State Street Bank & Trust Co. | | GBP | | | 2,335 | | | USD | | 3,695 | | | 06/20/12 | | | | (94 | ) |
State Street Bank & Trust Co. | | HKD | | | 94 | | | USD | | 12 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 261 | | | USD | | 34 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 846 | | | USD | | 109 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 853 | | | USD | | 110 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 2,522 | | | USD | | 325 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | ILS | | | 196 | | | USD | | 52 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | ILS | | | 203 | | | USD | | 54 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | ILS | | | 246 | | | USD | | 65 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | JPY | | | 26,756 | | | USD | | 333 | | | 05/07/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | JPY | | | 50,000 | | | USD | | 599 | | | 06/20/12 | | | | (27 | ) |
State Street Bank & Trust Co. | | JPY | | | 239,472 | | | USD | | 2,875 | | | 06/20/12 | | | | (126 | ) |
State Street Bank & Trust Co. | | SEK | | | 3,637 | | | USD | | 539 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | SEK | | | 5,823 | | | USD | | 860 | | | 06/20/12 | | | | (5 | ) |
State Street Bank & Trust Co. | | SGD | | | 38 | | | USD | | 30 | | | 06/20/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 117 |
Russell Investment Company
Russell International Developed Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
State Street Bank & Trust Co. | | SGD | | | 76 | | | USD | | 61 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | SGD | | | 168 | | | USD | | 134 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | SGD | | | 959 | | | USD | | 763 | | | 06/20/12 | | | | (12 | ) |
UBS AG | | USD | | | 222 | | | AUD | | 213 | | | 05/03/12 | | | | — | |
UBS AG | | USD | | | 987 | | | AUD | | 948 | | | 05/03/12 | | | | 1 | |
UBS AG | | USD | | | 139 | | | EUR | | 105 | | | 05/03/12 | | | | — | |
UBS AG | | USD | | | 144 | | | EUR | | 109 | | | 05/04/12 | | | | — | |
UBS AG | | USD | | | 33,171 | | | NOK | | 187,034 | | | 06/20/12 | | | | (551 | ) |
UBS AG | | EUR | | | 326 | | | USD | | 432 | | | 05/03/12 | | | | — | |
UBS AG | | JPY | | | 41,927 | | | USD | | 510 | | | 06/20/12 | | | | (16 | ) |
Westpac Banking Corp. | | USD | | | 2,979 | | | AUD | | 2,884 | | | 06/20/12 | | | | 11 | |
Westpac Banking Corp. | | USD | | | 4,555 | | | CAD | | 4,530 | | | 06/20/12 | | | | 26 | |
Westpac Banking Corp. | | USD | | | 14,722 | | | EUR | | 11,276 | | | 06/20/12 | | | | 206 | |
Westpac Banking Corp. | | USD | | | 6,724 | | | GBP | | 4,293 | | | 06/20/12 | | | | 241 | |
Westpac Banking Corp. | | USD | | | 1,261 | | | HKD | | 9,783 | | | 06/20/12 | | | | — | |
Westpac Banking Corp. | | USD | | | 6,931 | | | JPY | | 580,417 | | | 06/20/12 | | | | 342 | |
| | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | 2,407 | |
| | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Australia | | $ | 139,785 | | | $ | — | | | $ | — | | | $ | 139,785 | | | | 3.0 | |
Belgium | | | 46,291 | | | | — | | | | — | | | | 46,291 | | | | 1.0 | |
Bermuda | | | 30,724 | | | | — | | | | — | | | | 30,724 | | | | 0.6 | |
Brazil | | | 61,201 | | | | — | | | | — | | | | 61,201 | | | | 1.3 | |
Canada | | | 205,615 | | | | — | | | | 4 | | | | 205,619 | | | | 4.3 | |
Cayman Islands | | | 46,488 | | | | — | | | | 703 | | | | 47,191 | | | | 1.0 | |
Chile | | | 9,228 | | | | — | | | | — | | | | 9,228 | | | | 0.2 | |
China | | | 25,927 | | | | — | | | | — | | | | 25,927 | | | | 0.5 | |
Curacao | | | 161 | | | | — | | | | — | | | | 161 | | | | — | * |
Czech Republic | | | 5,217 | | | | — | | | | — | | | | 5,217 | | | | 0.1 | |
Denmark | | | 51,076 | | | | — | | | | — | | | | 51,076 | | | | 1.1 | |
Finland | | | 24,852 | | | | — | | | | — | | | | 24,852 | | | | 0.5 | |
France | | | 362,755 | | | | — | | | | — | | | | 362,755 | | | | 7.7 | |
Germany | | | 308,810 | | | | — | | | | — | | | | 308,810 | | | | 6.5 | |
Hong Kong | | | 89,181 | | | | — | | | | — | | | | 89,181 | | | | 1.9 | |
India | | | 11,853 | | | | — | | | | — | | | | 11,853 | | | | 0.3 | |
Indonesia | | | 9,187 | | | | — | | | | — | | | | 9,187 | | | | 0.2 | |
Ireland | | | 39,592 | | | | — | | | | — | | | | 39,592 | | | | 0.8 | |
Israel | | | 58,016 | | | | — | | | | — | | | | 58,016 | | | | 1.2 | |
Italy | | | 97,097 | | | | — | | | | — | | | | 97,097 | | | | 2.1 | |
Japan | | | 723,949 | | | | — | | | | — | | | | 723,949 | | | | 15.3 | |
Jersey | | | 39,861 | | | | — | | | | — | | | | 39,861 | | | | 0.8 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 118 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Luxembourg | | $ | 23,493 | | | $ | — | | | $ | — | | | $ | 23,493 | | | $ | 0.5 | |
Mauritius | | | 447 | | | | — | | | | — | | | | 447 | | | | — | * |
Mexico | | | 8,423 | | | | — | | | | — | | | | 8,423 | | | | 0.2 | |
Netherlands | | | 243,928 | | | | — | | | | — | | | | 243,928 | | | | 5.2 | |
New Zealand | | | 2,571 | | | | — | | | | — | | | | 2,571 | | | | 0.1 | |
Norway | | | 8,908 | | | | — | | | | — | | | | 8,908 | | | | 0.2 | |
Panama | | | 7,041 | | | | — | | | | — | | | | 7,041 | | | | 0.1 | |
Papua New Guinea | | | 3,735 | | | | — | | | | — | | | | 3,735 | | | | 0.1 | |
Philippines | | | 2,519 | | | | — | | | | — | | | | 2,519 | | | | 0.1 | |
Portugal | | | 2,527 | | | | — | | | | — | | | | 2,527 | | | | 0.1 | |
Russia | | | 24,937 | | | | — | | | | — | | | | 24,937 | | | | 0.5 | |
Singapore | | | 46,936 | | | | — | | | | — | | | | 46,936 | | | | 1.0 | |
South Africa | | | 18,518 | | | | — | | | | — | | | | 18,518 | | | | 0.4 | |
South Korea | | | 72,977 | | | | — | | | | — | | | | 72,977 | | | | 1.5 | |
Spain | | | 99,152 | | | | — | | | | — | | | | 99,152 | | | | 2.1 | |
Sweden | | | 53,058 | | | | — | | | | — | | | | 53,058 | | | | 1.1 | |
Switzerland | | | 333,629 | | | | — | | | | — | | | | 333,629 | | | | 7.1 | |
Taiwan | | | 43,133 | | | | — | | | | — | | | | 43,133 | | | | 0.9 | |
Thailand | | | 4,574 | | | | — | | | | — | | | | 4,574 | | | | 0.1 | |
United Kingdom | | | 877,443 | | | | — | | | | — | | | | 877,443 | | | | 18.5 | |
United States | | | 67,465 | | | | — | | | | — | | | | 67,465 | | | | 1.4 | |
Virgin Islands, British | | | 5,183 | | | | — | | | | — | | | | 5,183 | | | | 0.1 | |
Preferred Stocks | | | 14,884 | | | | — | | | | 237 | | | | 15,121 | | | | 0.3 | |
Warrants & Rights | | | — | | | | 26,544 | | | | 2,560 | | | | 29,104 | | | | 0.6 | |
Short-Term Investments | | | — | | | | 276,707 | | | | — | | | | 276,707 | | | | 5.9 | |
Other Securities | | | — | | | | 316,513 | | | | — | | | | 316,513 | | | | 6.7 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 4,352,347 | | | | 619,764 | | | | 3,504 | | | | 4,975,615 | | | | 105.2 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (5.2 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | (15,559 | ) | | | — | | | | — | | | | (15,559 | ) | | | (0.3 | ) |
Foreign Currency Exchange Contracts | | | (7 | ) | | | 2,414 | | | | — | | | | 2,407 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | (15,566 | ) | | $ | 2,414 | | | $ | — | | | $ | (13,152 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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) were used in determining a value for the period ended April 30, 2012 were less than 1% of net assets.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 119 |
Russell Investment Company
Russell International Developed Markets Fund
Fair Value of Derivative Instruments — April 30, 2012 (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 | | $ | — | | | $ | 7,200 | |
Daily variation margin on futures contracts* | | | 1,148 | | | | — | |
| | | | | | | | |
Total | | $ | 1,148 | | | $ | 7,200 | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 4,793 | |
Daily variation margin on futures contracts* | | | 16,707 | | | | — | |
| | | | | �� | | | |
Total | | $ | 16,707 | | | $ | 4,793 | |
| | | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | |
Futures contracts | | $ | 49,872 | | | $ | — | |
Foreign currency-related transactions | | | — | | | | (7,526 | ) |
| | | | | | | | |
Total | | $ | 49,872 | | | $ | (7,526 | ) |
| | | | | | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | |
Futures contracts | | $ | (45,047 | ) | | $ | — | |
Foreign currency-related transactions | | | — | | | | 2,769 | |
| | | | | | | | |
Total | | $ | (45,047 | ) | | $ | 2,769 | |
| | | | | | | | |
| * | 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 and 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.
| | | | |
| | 120 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 4,723,922 | |
Investments, at market**, *** | | | 4,975,615 | |
Cash | | | 257 | |
Cash (restricted) | | | 41,507 | |
Foreign currency holdings* | | | 7,794 | |
Unrealized appreciation on foreign currency exchange contracts | | | 7,200 | |
Receivables: | | | | |
Dividends and interest | | | 21,510 | |
Dividends from affiliated Russell money market funds | | | 33 | |
Investments sold | | | 17,372 | |
Fund shares sold | | | 8,024 | |
Foreign taxes recoverable | | | 2,874 | |
Daily variation margin on futures contracts | | | 571 | |
Prepaid expenses | | | 8 | |
| | | | |
Total assets | | | 5,082,765 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to broker | | | 3,013 | |
Investments purchased | | | 15,358 | |
Fund shares redeemed | | | 5,514 | |
Accrued fees to affiliates | | | 3,397 | |
Other accrued expenses | | | 589 | |
Daily variation margin on futures contracts | | | 3,030 | |
Deferred tax liability | | | 85 | |
Unrealized depreciation on foreign currency exchange contracts | | | 4,793 | |
Payable upon return of securities loaned | | | 316,450 | |
| | | | |
Total liabilities | | | 352,229 | |
| | | | |
| | | | |
Net Assets | | $ | 4,730,536 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 121 |
Russell Investment Company
Russell International Developed Markets Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 36,879 | |
Accumulated net realized gain (loss) | | | (1,337,980 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 251,608 | |
Futures contracts | | | (15,559 | ) |
Foreign currency-related transactions | | | 2,853 | |
Shares of beneficial interest | | | 1,619 | |
Additional paid-in capital | | | 5,791,116 | |
| | | | |
Net Assets | | $ | 4,730,536 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 29.19 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 30.97 | |
Class A — Net assets | | $ | 22,583,184 | |
Class A — Shares outstanding ($.01 par value) | | | 773,780 | |
Net asset value per share: Class C(a) | | $ | 29.14 | |
Class C — Net assets | | $ | 47,511,941 | |
Class C — Shares outstanding ($.01 par value) | | | 1,630,226 | |
Net asset value per share: Class E(a) | | $ | 29.22 | |
Class E — Net assets | | $ | 87,721,888 | |
Class E — Shares outstanding ($.01 par value) | | | 3,002,197 | |
Net asset value per share: Class I(a) | | $ | 29.23 | |
Class I — Net assets | | $ | 777,920,666 | |
Class I — Shares outstanding ($.01 par value) | | | 26,610,593 | |
Net asset value per share: Class S(a) | | $ | 29.21 | |
Class S — Net assets | | $ | 2,057,137,415 | |
Class S — Shares outstanding ($.01 par value) | | | 70,420,992 | |
Net asset value per share: Class Y(a) | | $ | 29.21 | |
Class Y — Net assets | | $ | 1,737,660,950 | |
Class Y — Shares outstanding ($.01 par value) | | | 59,497,695 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 7,718 | |
** Securities on loan included in investments | | $ | 308,249 | |
*** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 593,220 | |
| (a) | 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.
| | | | |
| | 122 | | | Russell International Developed Markets Fund |
Russell Investment Company
Russell International Developed Markets Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 69,354 | |
Dividends from affiliated Russell money market funds | | | 222 | |
Securities lending income | | | 1,455 | |
Less foreign taxes withheld | | | (5,308 | ) |
| | | | |
Total investment income | | | 65,723 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 16,043 | |
Administrative fees | | | 1,120 | |
Custodian fees | | | 747 | |
Distribution fees - Class A | | | 28 | |
Distribution fees - Class C | | | 184 | |
Transfer agent fees - Class A | | | 20 | |
Transfer agent fees - Class C | | | 44 | |
Transfer agent fees - Class E | | | 78 | |
Transfer agent fees - Class I | | | 394 | |
Transfer agent fees - Class S | | | 1,738 | |
Transfer agent fees - Class Y | | | 37 | |
Professional fees | | | 121 | |
Registration fees | | | 134 | |
Shareholder servicing fees - Class C | | | 61 | |
Shareholder servicing fees - Class E | | | 109 | |
Trustees’ fees | | | 62 | |
Printing fees | | | 92 | |
Miscellaneous | | | 37 | |
| | | | |
Expenses before reductions | | | 21,049 | |
Expense reductions | | | (26 | ) |
| | | | |
Net expenses | | | 21,023 | |
| | | | |
Net investment income (loss) | | | 44,700 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 1,352 | |
Futures contracts | | | 49,872 | |
Foreign currency-related transactions | | | (8,198 | ) |
| | | | |
Net realized gain (loss) | | | 43,026 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 117,123 | |
Futures contracts | | | (45,047 | ) |
Foreign currency-related transactions | | | 3,176 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 75,252 | |
| | | | |
Net realized and unrealized gain (loss) | | | 118,278 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 162,978 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 123 |
Russell Investment Company
Russell International Developed Markets Fund
Statements of Changes in Net Assets
| | | | | | | | |
| | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year Ended
October 31, 2011 | |
| Amounts in thousands | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 44,700 | | | $ | 89,112 | |
Net realized gain (loss) | | | 43,026 | | | | 60,426 | |
Net change in unrealized appreciation (depreciation) | | | 75,252 | | | | (455,663 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 162,978 | | | | (306,125 | ) |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (314 | ) | | | (296 | ) |
Class C | | | (247 | ) | | | (273 | ) |
Class E | | | (1,317 | ) | | | (1,278 | ) |
Class I | | | (14,191 | ) | | | (14,028 | ) |
Class S | | | (32,573 | ) | | | (25,401 | ) |
Class Y | | | (32,365 | ) | | | (31,961 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (81,007 | ) | | | (73,237 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 33,542 | | | | 215,162 | |
Fund Reimbursements | | | — | | | | 111 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 115,513 | | | | (164,089 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 4,615,023 | | | | 4,779,112 | |
| | | | | | | | |
End of period | | $ | 4,730,536 | | | $ | 4,615,023 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 36,879 | | | $ | 73,186 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 124 | | | Russell International Developed Markets Fund |
(This page intentionally left blank)
Russell Investment Company
Russell International Developed Markets Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 28.67 | | | | .23 | | | | .69 | | | | .92 | | | | (.40 | ) | | | — | | | | — | |
October 31, 2011 | | | 31.14 | | | | .47 | | | | (2.55 | ) | | | (2.08 | ) | | | (.39 | ) | | | — | | | | — | |
October 31, 2010 | | | 29.09 | | | | .34 | | | | 2.67 | | | | 3.01 | | | | (.96 | ) | | | — | | | | — | |
October 31, 2009 | | | 23.75 | | | | .40 | | | | 4.94 | | | | 5.34 | | | | — | | | | — | | | | — | |
October 31, 2008(3) | | | 34.84 | | | | .07 | | | | (11.16 | ) | | | (11.09 | ) | | | — | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 28.46 | | | | .12 | | | | .70 | | | | .82 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 30.85 | | | | .22 | | | | (2.49 | ) | | | (2.27 | ) | | | (.13 | ) | | | — | | | | — | |
October 31, 2010 | | | 28.83 | | | | .12 | | | | 2.65 | | | | 2.77 | | | | (.75 | ) | | | — | | | | — | |
October 31, 2009 | | | 23.73 | | | | .23 | | | | 4.87 | | | | 5.10 | | | | — | | | | — | | | | — | |
October 31, 2008(3) | | | 34.84 | | | | .03 | | | | (11.14 | ) | | | (11.11 | ) | | | — | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 28.72 | | | | .24 | | | | .69 | | | | .93 | | | | (.43 | ) | | | — | | | | — | |
October 31, 2011 | | | 31.19 | | | | .49 | | | | (2.55 | ) | | | (2.06 | ) | | | (.41 | ) | | | — | | | | — | |
October 31, 2010 | | | 29.12 | | | | .37 | | | | 2.68 | | | | 3.05 | | | | (.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 | ) | | | — | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 28.78 | | | | .27 | | | | .69 | | | | .96 | | | | (.51 | ) | | | — | | | | — | |
October 31, 2011 | | | 31.23 | | | | .57 | | | | (2.54 | ) | | | (1.97 | ) | | | (.48 | ) | | | — | | | | — | |
October 31, 2010 | | | 29.16 | | | | .44 | | | | 2.69 | | | | 3.13 | | | | (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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 28.75 | | | | .27 | | | | .68 | | | | .95 | | | | (.49 | ) | | | — | | | | — | |
October 31, 2011 | | | 31.19 | | | | .55 | | | | (2.53 | ) | | | (1.98 | ) | | | (.46 | ) | | | — | | | | — | |
October 31, 2010 | | | 29.13 | | | | .42 | | | | 2.66 | | | | 3.08 | | | | (1.02 | ) | | | — | | | | — | |
October 31, 2009 | | | 23.74 | | | | .48 | | | | 4.91 | | | | 5.39 | | | | — | | | | — | | | | — | |
October 31, 2008(3) | | | 34.79 | | | | .11 | | | | (11.16 | ) | | | (11.05 | ) | | | — | | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 28.77 | | | | .29 | | | | .69 | | | | .98 | | | | (.54 | ) | | | — | | | | — | |
October 31, 2011 | | | 31.26 | | | | .60 | | | | (2.58 | ) | | | (1.98 | ) | | | (.51 | ) | | | — | | | | — | |
October 31, 2010 | | | 29.18 | | | | .47 | | | | 2.68 | | | | 3.15 | | | | (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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 126 | | | Russell International Developed Markets Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.40 | ) | | | 29.19 | | | | 3.31 | | | | 22,583 | | | | 1.23 | | | | 1.23 | | | | 1.63 | | | | 27 | |
| | (.39 | ) | | | 28.67 | | | | (6.76 | ) | | | 22,963 | | | | 1.24 | | | | 1.24 | | | | 1.51 | | | | 74 | |
| | (.96 | ) | | | 31.14 | | | | 10.61 | | | | 23,702 | | | | 1.24 | | | | 1.24 | | | | 1.18 | | | | 91 | |
| | — | | | | 29.09 | | | | 22.44 | | | | 20,212 | | | | 1.25 | | | | 1.25 | | | | 1.63 | | | | 115 | |
| | — | | | | 23.75 | | | | (31.83 | ) | | | 14,638 | | | | 1.32 | | | | 1.31 | | | | 1.27 | | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 29.14 | | | | 2.88 | | | | 47,512 | | | | 1.98 | | | | 1.98 | | | | .84 | | | | 27 | |
| | (.13 | ) | | | 28.46 | | | | (7.34 | ) | | | 52,552 | | | | 1.99 | | | | 1.99 | | | | .72 | | | | 74 | |
| | (.75 | ) | | | 30.85 | | | | 9.80 | | | | 69,576 | | | | 1.99 | | | | 1.99 | | | | .43 | | | | 91 | |
| | — | | | | 28.83 | | | | 21.50 | | | | 77,072 | | | | 2.00 | | | | 2.00 | | | | .94 | | | | 115 | |
| | — | | | | 23.73 | | | | (31.92 | ) | | | 78,972 | | | | 2.06 | | | | 2.05 | | | | .53 | | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.43 | ) | | | 29.22 | | | | 3.34 | | | | 87,722 | | | | 1.23 | | | | 1.17 | | | | 1.68 | | | | 27 | |
| | (.41 | ) | | | 28.72 | | | | (6.66 | ) | | | 89,952 | | | | 1.24 | | | | 1.16 | | | | 1.58 | | | | 74 | |
| | (.98 | ) | | | 31.19 | | | | 10.75 | | | | 96,680 | | | | 1.24 | | | | 1.13 | | | | 1.29 | | | | 91 | |
| | — | | | | 29.12 | | | | 22.57 | | | | 88,476 | | | | 1.25 | | | | 1.12 | | | | 1.88 | | | | 115 | |
| | (10.12 | ) | | | 23.76 | | | | (48.26 | ) | | | 83,902 | | | | 1.22 | | | | 1.17 | | | | 2.04 | | | | 100 | |
| | (6.47 | ) | | | 56.97 | | | | 28.47 | | | | 61,533 | | | | 1.18 | | | | 1.16 | | | | 1.64 | | | | 108 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.51 | ) | | | 29.23 | | | | 3.45 | | | | 777,921 | | | | .90 | | | | .90 | | | | 1.93 | | | | 27 | |
| | (.48 | ) | | | 28.78 | | | | (6.39 | ) | | | 820,995 | | | | .91 | | | | .91 | | | | 1.81 | | | | 74 | |
| | (1.06 | ) | | | 31.23 | | | | 11.01 | | | | 923,019 | | | | .91 | | | | .89 | | | | 1.53 | | | | 91 | |
| | — | | | | 29.16 | | | | 22.84 | | | | 905,418 | | | | .92 | | | | .87 | | | | 2.08 | | | | 115 | |
| | (10.30 | ) | | | 23.74 | | | | (48.14 | ) | | | 882,731 | | | | .95 | | | | .92 | | | | 2.33 | | | | 100 | |
| | (6.59 | ) | | | 57.01 | | | | 28.75 | | | | 1,792,063 | | | | .93 | | | | .91 | | | | 1.87 | | | | 108 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.49 | ) | | | 29.21 | | | | 3.41 | | | | 2,057,137 | | | | .98 | | | | .98 | | | | 1.91 | | | | 27 | |
| | (.46 | ) | | | 28.75 | | | | (6.43 | ) | | | 1,905,604 | | | | .99 | | | | .99 | | | | 1.77 | | | | 74 | |
| | (1.02 | ) | | | 31.19 | | | | 10.90 | | | | 1,694,995 | | | | .99 | | | | .99 | | | | 1.45 | | | | 91 | |
| | — | | | | 29.13 | | | | 22.67 | | | | 1,348,135 | | | | 1.00 | | | | 1.00 | | | | 1.94 | | | | 115 | |
| | — | | | | 23.74 | | | | (31.79 | ) | | | 1,052,420 | | | | 1.08 | | | | 1.06 | | | | 2.00 | | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.54 | ) | | | 29.21 | | | | 3.53 | | | | 1,737,661 | | | | .81 | | | | .80 | | | | 2.05 | | | | 27 | |
| | (.51 | ) | | | 28.77 | | | | (6.46 | ) | | | 1,722,957 | | | | .81 | | | | .81 | | | | 1.92 | | | | 74 | |
| | (1.07 | ) | | | 31.26 | | | | 11.12 | | | | 1,971,140 | | | | .81 | | | | .81 | | | | 1.64 | | | | 91 | |
| | — | | | | 29.18 | | | | 22.87 | | | | 1,789,118 | | | | .82 | | | | .82 | | | | 2.15 | | | | 115 | |
| | (10.33 | ) | | | 23.74 | | | | (48.08 | ) | | | 1,626,309 | | | | .90 | | | | .88 | | | | 1.89 | | | | 100 | |
| | (6.61 | ) | | | 57.03 | | | | 28.85 | | | | 360,175 | | | | .88 | | | | .86 | | | | 1.98 | | | | 108 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell International Developed Markets Fund | | 127 |
Russell Investment Company
Russell Global Equity Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
| | | | | | | | |
April 30, 2012 | | $ | 1,058.04 | | | $ | 1,017.45 | |
Expenses Paid During Period* | | $ | 7.62 | | | $ | 7.47 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,054.28 | | | $ | 1,013.72 | |
Expenses Paid During Period* | | $ | 11.44 | | | $ | 11.22 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,057.27 | | | $ | 1,017.45 | |
Expenses Paid During Period* | | $ | 7.62 | | | $ | 7.47 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,058.51 | | | $ | 1,018.70 | |
Expenses Paid During Period* | | $ | 6 .35 | | | $ | 6 .22 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 128 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,060.31 | | | $ | 1,019.59 | |
Expenses Paid During Period* | | $ | 5.43 | | | $ | 5.32 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Global Equity Fund | | 129 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 93.0% | | | | | | | | |
| Australia - 0.4% | | | | | | | | |
Newcrest Mining, Ltd. | | | 229,600 | | | | 6,292 | |
Westfield Retail Trust (ö) | | | 1,812,630 | | | | 5,137 | |
| | | | | | | | |
| | | | | | | 11,429 | |
| | | | | | | | |
| | |
| Belgium - 0.6% | | | | | | | | |
Anheuser-Busch InBev NV (Ñ) | | | 225,490 | | | | 16,252 | |
Delhaize Group SA | | | 48,187 | | | | 2,346 | |
| | | | | | | | |
| | | | | | | 18,598 | |
| | | | | | | | |
| | |
| Bermuda - 0.3% | | | | | | | | |
China Hongxing Sports, Ltd. (Æ)(Å) | | | 6,320,000 | | | | 73 | |
Guoco Group, Ltd. | | | 142,000 | | | | 1,190 | |
PartnerRe, Ltd. - ADR | | | 45,600 | | | | 3,175 | |
Stolt-Nielsen, Ltd. Class A | | | 284,300 | | | | 5,092 | |
| | | | | | | | |
| | | | | | | 9,530 | |
| | | | | | | | |
| | |
| Brazil - 0.8% | | | | | | | | |
Amil Participacoes SA | | | 64,300 | | | | 626 | |
BM&FBovespa SA | | | 478,862 | | | | 2,693 | |
BrasilAgro - Companhia Brasileira de Propriedades Agricolas (Æ)(Å) | | | 373,800 | | | | 1,483 | |
Centrais Eletricas Brasileiras SA - ADR (Æ) | | | 478,140 | | | | 5,714 | |
Itau Unibanco Holding SA - ADR | | | 336,600 | | | | 5,281 | |
PDG Realty SA Empreendimentos e Participacoes | | | 1,576,700 | | | | 3,722 | |
Petroleo Brasileiro SA - ADR | | | 160,552 | | | | 3,558 | |
Profarma Distribuidora de Produtos Farmaceuticos SA | | | 93,100 | | | | 465 | |
| | | | | | | | |
| | | | | | | 23,542 | |
| | | | | | | | |
| | |
| Canada - 3.1% | | | | | | | | |
Bankers Petroleum, Ltd. (Æ) | | | 835,000 | | | | 2,891 | |
Barrick Gold Corp. | | | 271,500 | | | | 10,977 | |
Cameco Corp. Class A | | | 594,000 | | | | 13,127 | |
Canadian National Railway Co. (Þ) | | | 288,520 | | | | 24,605 | |
Eastern Platinum, Ltd. (Æ) | | | 5,772,500 | | | | 2,220 | |
Gabriel Resources, Ltd. (Æ) | | | 529,000 | | | | 1,398 | |
Kinross Gold Corp. | | | 130,000 | | | | 1,163 | |
Nexen, Inc. | | | 75,300 | | | | 1,457 | |
Niko Resources, Ltd. | | | 43,900 | | | | 1,850 | |
Novagold Resources, Inc. (Æ) | | | 230,400 | | | | 1,652 | |
Osisko Mining Corp. (Æ)(Þ) | | | 566,500 | | | | 5,832 | |
Potash Corp. of Saskatchewan, Inc. | | | 245,500 | | | | 10,429 | |
Shoppers Drug Mart Corp. | | | 153,300 | | | | 6,605 | |
Uranium Participation Corp. (Æ) | | | 593,100 | | | | 3,308 | |
| | | | | | | | |
| | | | | | | 87,514 | |
| | | | | | | | |
| | |
| Cayman Islands - 1.9% | | | | | | | | |
Baidu, Inc. - ADR (Æ) | | | 185,200 | | | | 24,576 | |
Chow Tai Fook Jewellery Group, Ltd. (Æ) | | | 1,741,277 | | | | 2,621 | |
Melco Crown Entertainment, Ltd. - ADR (Æ)(Ñ) | | | 748,011 | | | | 11,609 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
New Oriental Education & Technology Group - ADR (Æ) | | | 299,700 | | | | 8,011 | |
Sina Corp. (Æ)(Ñ) | | | 56,800 | | | | 3,324 | |
Tencent Holdings, Ltd. | | | 133,842 | | | | 4,206 | |
United Laboratories International Holdings, Ltd. (The) | | | 3,292,000 | | | | 1,328 | |
| | | | | | | | |
| | | | | | | 55,675 | |
| | | | | | | | |
| | |
| China - 0.8% | | | | | | | | |
Bank of China, Ltd. Class H | | | 9,794,000 | | | | 4,103 | |
China Petroleum & Chemical Corp. Class H | | | 2,678,000 | | | | 2,885 | |
Industrial & Commercial Bank of China Class H | | | 10,119,867 | | | | 6,756 | |
Ping An Insurance Group Co. Class H | | | 1,068,351 | | | | 8,937 | |
| | | | | | | | |
| | | | | | | 22,681 | |
| | | | | | | | |
| | |
| Cyprus - 0.1% | | | | | | | | |
Global Ports Investments PLC - GDR | | | 99,721 | | | | 1,484 | |
| | | | | | | | |
| | |
| Denmark - 0.3% | | | | | | | | |
Carlsberg A/S Class B | | | 8,500 | | | | 733 | |
GN Store Nord A/S | | | 341,592 | | | | 3,829 | |
Novo Nordisk A/S Class B | | | 31,268 | | | | 4,612 | |
| | | | | | | | |
| | | | | | | 9,174 | |
| | | | | | | | |
| | |
| Egypt - 0.2% | | | | | | | | |
Egyptian Financial Group-Hermes Holding (Æ) | | | 714,682 | | | | 1,603 | |
Oriental Weavers (Å) | | | 526,864 | | | | 1,666 | |
Telecom Egypt Co. - ADR | | | 874,182 | | | | 1,876 | |
| | | | | | | | |
| | | | | | | 5,145 | |
| | | | | | | | |
| | |
| Finland - 0.1% | | | | | | | | |
Nokia OYJ - ADR | | | 729,000 | | | | 2,661 | |
| | | | | | | | |
| | |
| France - 6.6% | | | | | | | | |
Areva SA (Æ) | | | 76,683 | | | | 1,342 | |
BNP Paribas SA | | | 366,914 | | | | 14,741 | |
Casino Guichard Perrachon SA (Æ) | | | 69,357 | | | | 6,811 | |
Danone | | | 456,166 | | | | 32,093 | |
Electricite de France SA | | | 425,000 | | | | 8,993 | |
Eutelsat Communications SA | | | 107,140 | | | | 3,814 | |
Legrand SA - ADR | | | 663,911 | | | | 22,410 | |
LVMH Moet Hennessy Louis Vuitton SA - ADR (Ñ) | | | 150,879 | | | | 24,995 | |
Pernod-Ricard SA | | | 94,280 | | | | 9,785 | |
PPR SA (Ñ) | | | 93,200 | | | | 15,588 | |
Publicis Groupe SA - ADR | | | 399,754 | | | | 20,616 | |
Sanofi - ADR | | | 75,125 | | | | 5,734 | |
Schneider Electric SA | | | 92,005 | | | | 5,652 | |
Thales SA | | | 215,300 | | | | 7,460 | |
Total SA | | | 107,575 | | | | 5,136 | |
Vivendi SA - ADR | | | 210,500 | | | | 3,891 | |
| | | | | | | | |
| | | | | | | 189,061 | |
| | | | | | | | |
| | | | |
| | 130 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Germany - 3.8% | | | | | | | | |
Allianz SE | | | 204,650 | | | | 22,804 | |
Brenntag AG | | | 28,824 | | | | 3,590 | |
Daimler AG | | | 331,300 | | | | 18,316 | |
Linde AG | | | 202,460 | | | | 34,652 | |
Rhoen Klinikum AG | | | 171,996 | | | | 4,838 | |
SAP AG - ADR | | | 297,861 | | | | 19,749 | |
Volkswagen AG | | | 20,258 | | | | 3,458 | |
| | | | | | | | |
| | | | | | | 107,407 | |
| | | | | | | | |
| | |
| Greece - 0.1% | | | | | | | | |
OPAP SA | | | 186,000 | | | | 1,662 | |
| | | | | | | | |
| | |
| Hong Kong - 0.3% | | | | | | | | |
AIA Group, Ltd. | | | 1,362,041 | | | | 4,845 | |
Cathay Pacific Airways, Ltd. | | | 1,970,600 | | | | 3,343 | |
| | | | | | | | |
| | | | | | | 8,188 | |
| | | | | | | | |
| | |
| Hungary - 0.0% | | | | | | | | |
EGIS Pharmaceuticals PLC | | | 19,150 | | | | 1,282 | |
| | | | | | | | |
| | |
| India - 0.2% | | | | | | | | |
Container Corp. of India | | | 157,220 | | | | 2,667 | |
GMR Infrastructure, Ltd. (Æ) | | | 3,268,754 | | | | 1,653 | |
| | | | | | | | |
| | | | | | | 4,320 | |
| | | | | | | | |
| | |
| Indonesia - 0.1% | | | | | | | | |
PT Medco Energi Internasional Tbk | | | 6,964,500 | | | | 1,591 | |
| | | | | | | | |
| | |
| Ireland - 1.6% | | | | | | | | |
Accenture PLC Class A | | | 666,880 | | | | 43,314 | |
Cooper Industries PLC | | | 48,000 | | | | 3,003 | |
| | | | | | | | |
| | | | | | | 46,317 | |
| | | | | | | | |
| | |
| Israel - 0.2% | | | | | | | | |
Teva Pharmaceutical Industries, Ltd. - ADR | | | 135,932 | | | | 6,217 | |
| | | | | | | | |
| | |
| Italy - 0.5% | | | | | | | | |
Enel SpA | | | 1,432,423 | | | | 4,703 | |
ERG SpA | | | 656,575 | | | | 4,945 | |
Finmeccanica SpA | | | 757,850 | | | | 3,256 | |
| | | | | | | | |
| | | | | | | 12,904 | |
| | | | | | | | |
| | |
| Japan - 5.4% | | | | | | | | |
Canon, Inc. | | | 366,400 | | | | 16,842 | |
Chugoku Marine Paints, Ltd. | | | 124,000 | | | | 741 | |
Daiwa Securities Group, Inc. (Ñ) | | | 6,612,000 | | | | 25,176 | |
East Japan Railway Co. | | | 112,500 | | | | 7,017 | |
Futaba Corp. | | | 178,400 | | | | 2,793 | |
Honda Motor Co., Ltd. | | | 144,700 | | | | 5,249 | |
Japan Digital Laboratory Co., Ltd. | | | 80,200 | | | | 873 | |
Japan Steel Works, Ltd. (The) | | | 810,000 | | | | 4,951 | |
Kamigumi Co., Ltd. | | | 307,000 | | | | 2,473 | |
Kurita Water Industries, Ltd. | | | 72,800 | | | | 1,788 | |
Makita Corp. | | | 137,300 | | | | 5,314 | |
Mitsubishi Estate Co., Ltd. | | | 219,892 | | | | 3,922 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Mitsui & Co., Ltd. | | | 228,100 | | | | 3,583 | |
MS&AD Insurance Group Holdings | | | 174,700 | | | | 3,245 | |
Nippon Telegraph & Telephone Corp. | | | 161,300 | | | | 7,324 | |
Organo Corp. | | | 138,000 | | | | 902 | |
Rohm Co., Ltd. | | | 335,600 | | | | 15,216 | |
Sanshin Electronics Co., Ltd. | | | 215,900 | | | | 1,641 | |
Seven & I Holdings Co., Ltd. | | | 219,300 | | | | 6,655 | |
Softbank Corp. | | | 180,600 | | | | 5,420 | |
Sumitomo Mitsui Trust Holdings, Inc. | | | 1,381,999 | | | | 4,085 | |
Toppan Printing Co., Ltd. | | | 511,000 | | | | 3,475 | |
Toyota Motor Corp. | | | 443,500 | | | | 18,359 | |
TV Asahi Corp. | | | 1,635 | | | | 2,447 | |
West Japan Railway Co. | | | 39,500 | | | | 1,625 | |
Yamada Denki Co., Ltd. (Ñ) | | | 40,970 | | | | 2,668 | |
| | | | | | | | |
| | | | | | | 153,784 | |
| | | | | | | | |
| | |
| Jersey - 0.9% | | | | | | | | |
Delphi Automotive PLC (Æ) | | | 251,400 | | | | 7,715 | |
Glencore International PLC (Ñ) | | | 1,724,583 | | | | 11,912 | |
Polyus Gold International, Ltd. - GDR (Æ) | | | 2,326,963 | | | | 7,167 | |
| | | | | | | | |
| | | | | | | 26,794 | |
| | | | | | | | |
| | |
| Lebanon - 0.0% | | | | | | | | |
Solidere - GDR | | | 101,008 | | | | 1,325 | |
| | | | | | | | |
| | |
| Luxembourg - 0.1% | | | | | | | | |
Subsea 7 SA (Æ) | | | 147,443 | | | | 3,821 | |
| | | | | | | | |
| | |
| Mexico - 0.2% | | | | | | | | |
Grupo Televisa SAB - ADR | | | 295,000 | | | | 6,481 | |
| | | | | | | | |
| | |
| Netherlands - 2.4% | | | | | | | | |
Akzo Nobel NV | | | 597,776 | | | | 32,035 | |
European Aeronautic Defence and Space Co. NV | | | 179,510 | | | | 7,087 | |
Heineken NV (Ñ) | | | 534,479 | | | | 29,230 | |
X5 Retail Group NV - GDR (Æ) | | | 6,076 | | | | 153 | |
| | | | | | | | |
| | | | | | | 68,505 | |
| | | | | | | | |
| | |
| Norway - 0.6% | | | | | | | | |
Marine Harvest ASA | | | 7,495,000 | | | | 3,845 | |
Statoil ASA Class N | | | 404,701 | | | | 10,806 | |
Statoil ASA - ADR | | | 73,550 | | | | 1,979 | |
| | | | | | | | |
| | | | | | | 16,630 | |
| | | | | | | | |
| | |
| Panama - 0.8% | | | | | | | | |
Carnival Corp. | | | 674,200 | | | | 21,905 | |
| | | | | | | | |
| | |
| Russia - 0.8% | | | | | | | | |
Federal Hydrogenerating Co. JSC - ADR | | | 2,265,000 | | | | 7,882 | |
Gazprom OAO - ADR (Æ) | | | 995,274 | | | | 11,479 | |
OGK-3 Class 3 (Æ) | | | 43,500,000 | | | | 1,565 | |
Rosneft Oil Co. - GDR | | | 430,978 | | | | 3,075 | |
| | | | | | | | |
| | | | | | | 24,001 | |
| | | | | | | | |
| | |
| Russell Global Equity Fund | | 131 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Slovenia - 0.1% | | | | | | | | |
Krka dd Novo mesto | | | 24,100 | | | | 1,515 | |
| | | | | | | | |
| | |
| South Africa - 0.4% | | | | | | | | |
AngloGold Ashanti, Ltd. - ADR | | | 119,100 | | | | 4,095 | |
Impala Platinum Holdings, Ltd. | | | 273,700 | | | | 5,327 | |
Village Main Reef, Ltd. (Æ) | | | 3,604,436 | | | | 783 | |
| | | | | | | | |
| | | | | | | 10,205 | |
| | | | | | | | |
| | |
| South Korea - 1.5% | | | | | | | | |
BS Financial Group, Inc. | | | 138,200 | | | | 1,425 | |
Hyundai Heavy Industries Co., Ltd. | | | 20,327 | | | | 5,090 | |
Hyundai Motor Co. | | | 43,476 | | | | 10,329 | |
Korea Electric Power Corp. - ADR | | | 440,300 | | | | 4,183 | |
KT Corp. - ADR | | | 380,150 | | | | 4,885 | |
LG Electronics, Inc. Class H | | | 5,495 | | | | 341 | |
Samsung Electronics Co., Ltd. | | | 13,139 | | | | 16,160 | |
| | | | | | | | |
| | | | | | | 42,413 | |
| | | | | | | | |
| | |
| Spain - 0.7% | | | | | | | | |
Banco Santander SA - ADR | | | 2,108,866 | | | | 13,176 | |
Red Electrica Corp. SA | | | 111,405 | | | | 4,850 | |
Repsol YPF SA - ADR | | | 100,677 | | | | 1,926 | |
| | | | | | | | |
| | | | | | | 19,952 | |
| | | | | | | | |
| | |
| Switzerland - 6.7% | | | | | | | | |
Actelion, Ltd. (Æ) | | | 92,475 | | | | 3,912 | |
Adecco SA (Æ) | | | 374,400 | | | | 18,232 | |
Cie Financiere Richemont SA | | | 449,688 | | | | 27,794 | |
Credit Suisse Group AG (Æ) | | | 810,048 | | | | 19,375 | |
Givaudan SA (Æ) | | | 16,000 | | | | 15,530 | |
Holcim, Ltd. (Æ) | | | 148,000 | | | | 9,213 | |
Julius Baer Group, Ltd. (Æ) | | | 418,900 | | | | 16,038 | |
Kuehne + Nagel International AG | | | 98,200 | | | | 11,934 | |
Nestle SA | | | 643,479 | | | | 39,418 | |
Noble Corp. (Æ) | | | 153,300 | | | | 5,835 | |
Novartis AG | | | 263,884 | | | | 14,551 | |
Swisscom AG | | | 2,373 | | | | 884 | |
Tyco International, Ltd. | | | 177,864 | | | | 9,984 | |
| | | | | | | | |
| | | | | | | 192,700 | |
| | | | | | | | |
| | |
| Turkey - 0.3% | | | | | | | | |
Turkcell Iletisim Hizmetleri AS - ADR (Æ) | | | 667,000 | | | | 8,244 | |
| | | | | | | | |
| | |
| United Kingdom - 8.4% | | | | | | | | |
ARM Holdings PLC | | | 1,628,424 | | | | 13,848 | |
Aviva PLC | | | 747,733 | | | | 3,739 | |
Barclays PLC | | | 3,303,723 | | | | 11,702 | |
BG Group PLC | | | 236,379 | | | | 5,564 | |
BP PLC | | | 1,808,179 | | | | 13,058 | |
Diageo PLC | | | 1,361,638 | | | | 34,274 | |
Experian PLC | | | 340,770 | | | | 5,378 | |
Faroe Petroleum PLC (Æ) | | | 374,990 | | | | 1,076 | |
GlaxoSmithKline PLC - ADR | | | 738,920 | | | | 17,088 | |
Imperial Tobacco Group PLC | | | 314,793 | | | | 12,588 | |
Lloyds Banking Group PLC (Æ) | | | 9,985,363 | | | | 5,025 | |
Marks & Spencer Group PLC | | | 736,469 | | | | 4,267 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Reckitt Benckiser Group PLC | | | 483,636 | | | | 28,154 | |
Rockhopper Exploration PLC (Æ) | | | 442,605 | | | | 2,444 | |
Rolls-Royce Holdings PLC (Æ) | | | 990,498 | | | | 13,238 | |
Royal Bank of Scotland Group PLC - ADR (Æ) | | | 15,550,555 | | | | 6,125 | |
Royal Dutch Shell PLC Class B | | | 256,611 | | | | 9,356 | |
RusPetro PLC (Æ) | | | 863,668 | | | | 2,649 | |
Standard Chartered PLC | | | 270,288 | | | | 6,606 | |
Tesco PLC | | | 1,061,068 | | | | 5,465 | |
Tullow Oil PLC | | | 298,653 | | | | 7,435 | |
Vodafone Group PLC - ADR (Æ) | | | 3,296,216 | | | | 9,121 | |
Weir Group PLC (The) | | | 214,194 | | | | 5,927 | |
WPP PLC | | | 1,200,699 | | | | 16,242 | |
| | | | | | | | |
| | | | | | | 240,369 | |
| | | | | | | | |
| | |
| United States - 41.5% | | | | | | | | |
3M Co. | | | 211,040 | | | | 18,859 | |
Alliant Techsystems, Inc. | | | 66,650 | | | | 3,552 | |
Anadarko Petroleum Corp. | | | 85,032 | | | | 6,225 | |
Apache Corp. | | | 63,900 | | | | 6,131 | |
Apple, Inc. (Æ) | | | 73,235 | | | | 42,787 | |
Applied Materials, Inc. | | | 1,473,700 | | | | 17,670 | |
Arch Coal, Inc. (Ñ) | | | 1,347,794 | | | | 13,154 | |
Autoliv, Inc. (Ñ) | | | 86,900 | | | | 5,452 | |
Bank of America Corp. | | | 614,000 | | | | 4,980 | |
Bank of New York Mellon Corp. (The) | | | 876,130 | | | | 20,720 | |
Baxter International, Inc. | | | 168,300 | | | | 9,325 | |
Best Buy Co., Inc. | | | 390,250 | | | | 8,613 | |
Boeing Co. (The) | | | 250,700 | | | | 19,254 | |
Broadcom Corp. Class A (Æ) | | | 294,800 | | | | 10,790 | |
Cameron International Corp. (Æ) | | | 71,500 | | | | 3,664 | |
CarMax, Inc. (Æ) | | | 109,200 | | | | 3,371 | |
Chesapeake Energy Corp. | | | 364,850 | | | | 6,728 | |
Cimarex Energy Co. | | | 158,900 | | | | 10,982 | |
Citigroup, Inc. | | | 341,099 | | | | 11,270 | |
CME Group, Inc. Class A | | | 56,100 | | | | 14,912 | |
Comcast Corp. Class A (Æ) | | | 503,900 | | | | 15,031 | |
Computer Sciences Corp. | | | 180,500 | | | | 5,065 | |
Consol Energy, Inc. | | | 118,200 | | | | 3,929 | |
Corning, Inc. | | | 612,600 | | | | 8,791 | |
Crown Castle International Corp. (Æ) | | | 95,400 | | | | 5,401 | |
Dentsply International, Inc. | | | 59,300 | | | | 2,435 | |
DP World, Ltd. (Æ) | | | 304,029 | | | | 3,484 | |
EMC Corp. (Æ) | | | 193,334 | | | | 5,454 | |
Emerson Electric Co. | | | 78,700 | | | | 4,135 | |
Energizer Holdings, Inc. (Æ) | | | 105,072 | | | | 7,495 | |
Exelon Corp. | | | 97,250 | | | | 3,794 | |
Express Scripts Holding Co. (Æ) | | | 426,525 | | | | 23,796 | |
Franklin Resources, Inc. | | | 179,000 | | | | 22,466 | |
General Dynamics Corp. | | | 147,900 | | | | 9,983 | |
General Electric Co. | | | 248,400 | | | | 4,864 | |
General Motors Co. (Æ) | | | 172,800 | | | | 3,974 | |
Goldman Sachs Group, Inc. (The) | | | 114,700 | | | | 13,208 | |
Google, Inc. Class A (Æ) | | | 27,600 | | | | 16,704 | |
Honeywell International, Inc. | | | 457,430 | | | | 27,748 | |
Hubbell, Inc. Class B (Æ) | | | 22,000 | | | | 1,765 | |
Illinois Tool Works, Inc. | | | 207,500 | | | | 11,906 | |
Ingram Micro, Inc. Class A (Æ) | | | 147,200 | | | | 2,864 | |
| | | | |
| | 132 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Intel Corp. | | | 1,828,200 | | | | 51,921 | |
IntercontinentalExchange, Inc. (Æ) | | | 10,100 | | | | 1,344 | |
International Business Machines Corp. | | | 53,200 | | | | 11,017 | |
Johnson & Johnson | | | 69,900 | | | | 4,550 | |
JPMorgan Chase & Co. | | | 1,162,053 | | | | 49,945 | |
Juniper Networks, Inc. (Æ) | | | 574,800 | | | | 12,318 | |
Kroger Co. (The) | | | 170,600 | | | | 3,970 | |
Laboratory Corp. of America Holdings (Æ) | | | 60,800 | | | | 5,344 | |
LinkedIn Corp. Class A (Æ) | | | 48,400 | | | | 5,249 | |
Mastercard, Inc. Class A | | | 31,900 | | | | 14,427 | |
Medtronic, Inc. | | | 675,170 | | | | 25,791 | |
Merck & Co., Inc. | | | 246,000 | | | | 9,653 | |
MetLife, Inc. | | | 168,400 | | | | 6,067 | |
Micron Technology, Inc. (Æ) | | | 362,000 | | | | 2,386 | |
Microsoft Corp. | | | 407,000 | | | | 13,032 | |
MSCI, Inc. Class A (Æ) | | | 128,900 | | | | 4,716 | |
National Oilwell Varco, Inc. | | | 161,900 | | | | 12,266 | |
Newmont Mining Corp. | | | 309,000 | | | | 14,724 | |
News Corp. Class A | | | 622,900 | | | | 12,209 | |
Occidental Petroleum Corp. | | | 50,900 | | | | 4,643 | |
Old Republic International Corp. | | | 376,000 | | | | 3,741 | |
Omnicom Group, Inc. | | | 468,970 | | | | 24,063 | |
Oracle Corp. | | | 796,380 | | | | 23,406 | |
Pfizer, Inc. | | | 259,300 | | | | 5,946 | |
Praxair, Inc. | | | 230,790 | | | | 26,702 | |
Prudential Financial, Inc. | | | 28,800 | | | | 1,744 | |
QUALCOMM, Inc. | | | 197,167 | | | | 12,587 | |
SanDisk Corp. (Æ) | | | 69,700 | | | | 2,580 | |
Sotheby’s Class A | | | 269,479 | | | | 10,596 | |
Southwest Airlines Co. | | | 828,750 | | | | 6,862 | |
Southwestern Energy Co. (Æ) | | | 60,800 | | | | 1,920 | |
SPDR S&P 500 ETF Trust | | | 24,897 | | | | 3,480 | |
St. Jude Medical, Inc. | | | 148,400 | | | | 5,746 | |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | | 269,300 | | | | 15,943 | |
SunTrust Banks, Inc. | | | 169,000 | | | | 4,103 | |
Texas Instruments, Inc. | | | 254,600 | | | | 8,132 | |
Thermo Fisher Scientific, Inc. | | | 560,150 | | | | 31,172 | |
Tiffany & Co. | | | 117,600 | | | | 8,051 | |
TJX Cos., Inc. | | | 166,648 | | | | 6,951 | |
Union Pacific Corp. | | | 63,141 | | | | 7,100 | |
United Parcel Service, Inc. Class B | | | 445,240 | | | | 34,791 | |
United States Steel Corp. (Ñ) | | | 345,800 | | | | 9,796 | |
UnitedHealth Group, Inc. | | | 186,400 | | | | 10,466 | |
Valero Energy Corp. | | | 174,100 | | | | 4,300 | |
Viacom, Inc. Class B | | | 94,662 | | | | 4,391 | |
Visa, Inc. Class A | | | 483,809 | | | | 59,499 | |
VMware, Inc. Class A (Æ) | | | 72,162 | | | | 8,062 | |
Walgreen Co. | | | 635,870 | | | | 22,294 | |
Walt Disney Co. (The) | | | 880,738 | | | | 37,969 | |
Walter Energy, Inc. Class A | | | 127,299 | | | | 8,441 | |
Waters Corp. (Æ) | | | 256,050 | | | | 21,536 | |
WellPoint, Inc. | | | 164,000 | | | | 11,122 | |
Wells Fargo & Co. | | | 883,700 | | | | 29,542 | |
X5 Retail Group NV - GDR (Æ) | | | 236,943 | | | | 5,990 | |
| | | | | | | | |
| | | | | | | 1,187,327 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Virgin Islands, British - 0.2% | | | | | | | | |
Mail.ru Group, Ltd. - GDR (Æ)(Þ) | | | 81,066 | | | | 3,506 | |
Mail.ru Group, Ltd. - GDR (Æ) | | | 68,638 | | | | 2,969 | |
| | | | | | | | |
| | | | | | | 6,475 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $2,443,178) | | | | | | | 2,658,828 | |
| | | | | | | | |
| | |
| Preferred Stocks - 0.5% | | | | | | | | |
| Brazil - 0.2% | | | | | | | | |
Investimentos Itau SA | | | 824,222 | | | | 3,918 | |
| | | | | | | | |
| | |
| Germany - 0.3% | | | | | | | | |
Porsche Automobil Holding SE | | | 59,101 | | | | 3,608 | |
Volkswagen AG | | | 21,921 | | | | 4,152 | |
| | | | | | | | |
| | | | | | | 7,760 | |
| | | | | | | | |
| | |
| South Korea - 0.0% | | | | | | | | |
LG Electronics, Inc. | | | 58,230 | | | | 1,046 | |
| | | | | | | | |
| | |
| United Kingdom - 0.0% | | | | | | | | |
Rolls-Royce Holdings PLC Class C (Æ) | | | 104,992,788 | | | | 170 | |
| | | | | | | | |
| | |
Total Preferred Stocks
(cost $15,286) | | | | | | | 12,894 | |
| | | | | | | | |
| | |
| Warrants & Rights - 0.0% | | | | | | | | |
| Brazil - 0.0% | | | | | | | | |
Investimentos Itau SA (Æ)
2012 Rights | | | 10,001 | | | | 3 | |
| | | | | | | | |
| | |
| Spain - 0.0% | | | | | | | | |
Banco Santander SA (Æ)
2012 Rights | | | 87,869 | | | | 549 | |
| | | | | | | | |
| | |
Total Warrants & Rights
(cost $612) | | | | | | | 552 | |
| | | | | | | | |
| | |
| Short-Term Investments - 6.0% | | | | | | | | |
| United States - 6.0% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 170,248,429 | (¥) | | | 170,248 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $170,248) | | | | | | | 170,248 | |
| | | | | | | | |
| | |
| Other Securities - 4.1% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 1,879,307 | (¥) | | | 1,913 | |
Russell U.S. Cash Collateral Fund (×) | | | 115,778,650 | (¥) | | | 115,779 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $117,658) | | | | | | | 117,692 | |
| | | | | | | | |
| | |
Total Investments - 103.6%
(identified cost $2,746,982) | | | | | | | 2,960,214 | |
| | |
Other Assets and Liabilities,
Net - (3.6%) | | | | | | | (102,620 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 2,857,594 | |
| | | | | | | | |
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 Global Equity Fund | | 133 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | |
ASX SPI 200 Index Futures (Australia) | | | 65 | | | AUD | | | 7,145 | | | | 06/12 | | | | 222 | |
FTSE 100 Index Futures (UK) | | | 204 | | | GBP | | | 11,658 | | | | 06/12 | | | | (209 | ) |
Hang Seng Index Futures (Hong Kong) | | | 24 | | | HKD | | | 25,128 | | | | 05/12 | | | | 65 | |
S&P 500 E-Mini Index Futures (CME) | | | 1,435 | | | USD | | | 99,991 | | | | 06/12 | | | | 1,975 | |
S&P 500 Index Futures (CME) | | | 40 | | | USD | | | 13,936 | | | | 06/12 | | | | 395 | |
S&P Midcap 400 E-Mini Index Futures (CME) | | | 107 | | | USD | | | 10,589 | | | | 06/12 | | | | 148 | |
S&P TSE 60 Index Futures (Canada) | | | 79 | | | CAD | | | 11,035 | | | | 06/12 | | | | 3 | |
TOPIX Index Futures (Japan) | | | 193 | | | JPY | | | 1,548,825 | | | | 06/12 | | | | (425 | ) |
| | | | | | | | | | | | | | | | | | |
| | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | 2,174 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 134 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Banco Citibank SA | | BRL | | | 31 | | | USD | | 17 | | | 05/02/12 | | | | — | |
Banco Citibank SA | | BRL | | | 62 | | | USD | | 33 | | | 05/03/12 | | | | 1 | |
Bank of Montreal | | USD | | | 404 | | | HKD | | 3,133 | | | 06/20/12 | | | | — | |
Citibank | | USD | | | 203 | | | CAD | | 200 | | | 06/20/12 | | | | (1 | ) |
Citibank | | USD | | | 985 | | | JPY | | 80,000 | | | 06/20/12 | | | | 17 | |
Citibank | | AUD | | | 100 | | | USD | | 102 | | | 06/20/12 | | | | (1 | ) |
Citibank | | CAD | | | 200 | | | USD | | 201 | | | 06/20/12 | | | | (1 | ) |
Citibank | | GBP | | | 200 | | | USD | | 318 | | | 06/20/12 | | | | (6 | ) |
Citibank | | JPY | | | 50,000 | | | USD | | 604 | | | 06/20/12 | | | | (22 | ) |
Commonwealth Bank of Australia | | USD | | | 1,017 | | | AUD | | 984 | | | 06/20/12 | | | | 4 | |
Commonwealth Bank of Australia | | USD | | | 1,430 | | | CAD | | 1,423 | | | 06/20/12 | | | | 8 | |
Commonwealth Bank of Australia | | USD | | | 2,252 | | | GBP | | 1,438 | | | 06/20/12 | | | | 80 | |
Commonwealth Bank of Australia | | USD | | | 404 | | | HKD | | 3,133 | | | 06/20/12 | | | | — | |
Commonwealth Bank of Australia | | USD | | | 2,693 | | | JPY | | 225,500 | | | 06/20/12 | | | | 132 | |
Deutsche Bank AG | | USD | | | 1,017 | | | AUD | | 984 | | | 06/20/12 | | | | 4 | |
Deutsche Bank AG | | USD | | | 1,431 | | | CAD | | 1,423 | | | 06/20/12 | | | | 7 | |
Deutsche Bank AG | | USD | | | 2,252 | | | GBP | | 1,438 | | | 06/20/12 | | | | 80 | |
Deutsche Bank AG | | USD | | | 404 | | | HKD | | 3,133 | | | 06/20/12 | | | | — | |
Deutsche Bank AG | | USD | | | 2,694 | | | JPY | | 225,500 | | | 06/20/12 | | | | 132 | |
HSBC Bank PLC | | USD | | | 1,016 | | | AUD | | 984 | | | 06/20/12 | | | | 4 | |
HSBC Bank PLC | | USD | | | 1,431 | | | CAD | | 1,423 | | | 06/20/12 | | | | 7 | |
HSBC Bank PLC | | USD | | | 2,252 | | | GBP | | 1,438 | | | 06/20/12 | | | | 81 | |
HSBC Bank PLC | | USD | | | 404 | | | HKD | | 3,133 | | | 06/20/12 | | | | — | |
HSBC Bank PLC | | USD | | | 2,695 | | | JPY | | 225,500 | | | 06/20/12 | | | | 130 | |
JPMorgan Chase Bank | | USD | | | 307 | | | AUD | | 300 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 511 | | | AUD | | 500 | | | 06/20/12 | | | | 7 | |
JPMorgan Chase Bank | | USD | | | 514 | | | AUD | | 500 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 1,017 | | | AUD | | 984 | | | 06/20/12 | | | | 3 | |
JPMorgan Chase Bank | | USD | | | 404 | | | CAD | | 400 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 999 | | | CAD | | 1,000 | | | 06/20/12 | | | | 12 | |
JPMorgan Chase Bank | | USD | | | 1,431 | | | CAD | | 1,423 | | | 06/20/12 | | | | 7 | |
JPMorgan Chase Bank | | USD | | | 477 | | | GBP | | 300 | | | 06/20/12 | | | | 10 | |
JPMorgan Chase Bank | | USD | | | 645 | | | GBP | | 400 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 1,589 | | | GBP | | 1,000 | | | 06/20/12 | | | | 34 | |
JPMorgan Chase Bank | | USD | | | 2,252 | | | GBP | | 1,438 | | | 06/20/12 | | | | 80 | |
JPMorgan Chase Bank | | USD | | | 492 | | | JPY | | 40,000 | | | 06/20/12 | | | | 9 | |
JPMorgan Chase Bank | | USD | | | 619 | | | JPY | | 50,000 | | | 06/20/12 | | | | 8 | |
JPMorgan Chase Bank | | USD | | | 1,866 | | | JPY | | 150,000 | | | 06/20/12 | | | | 13 | |
JPMorgan Chase Bank | | USD | | | 2,693 | | | JPY | | 225,500 | | | 06/20/12 | | | | 132 | |
Mellon Bank | | USD | | | 31 | | | AUD | | 30 | | | 06/20/12 | | | | 1 | |
Mellon Bank | | USD | | | 302 | | | CAD | | 300 | | | 06/20/12 | | | | 1 | |
Mellon Bank | | USD | | | 497 | | | CAD | | 500 | | | 06/20/12 | | | | 8 | |
Mellon Bank | | USD | | | 793 | | | GBP | | 500 | | | 06/20/12 | | | | 18 | |
Mellon Bank | | USD | | | 77 | | | HKD | | 600 | | | 06/20/12 | | | | — | |
Mellon Bank | | USD | | | 404 | | | HKD | | 3,133 | | | 06/20/12 | | | | — | |
Mellon Bank | | USD | | | 620 | | | JPY | | 50,000 | | | 06/20/12 | | | | 7 | |
Northern Trust Company | | GBP | | | 957 | | | USD | | 1,553 | | | 05/01/12 | | | | 1 | |
Royal Bank of Canada | | USD | | | 1,016 | | | AUD | | 984 | | | 06/20/12 | | | | 4 | |
Royal Bank of Canada | | USD | | | 1,430 | | | CAD | | 1,423 | | | 06/20/12 | | | | 8 | |
Royal Bank of Canada | | USD | | | 2,251 | | | GBP | | 1,438 | | | 06/20/12 | | | | 81 | |
Royal Bank of Canada | | USD | | | 2,694 | | | JPY | | 225,500 | | | 06/20/12 | | | | 132 | |
Royal Bank of Scotland PLC | | CAD | | | 100 | | | USD | | 101 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 13,438 | | | AUD | | 12,971 | | | 05/15/12 | | | | 59 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Equity Fund | | 135 |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
State Street Bank & Trust Co. | | USD | | | 103 | | | AUD | | 100 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 205 | | | AUD | | 200 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 309 | | | AUD | | 300 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 411 | | | AUD | | 400 | | | 06/20/12 | | | | 3 | |
State Street Bank & Trust Co. | | USD | | | 20,869 | | | CAD | | 20,488 | | | 05/15/12 | | | | (135 | ) |
State Street Bank & Trust Co. | | USD | | | 403 | | | CAD | | 400 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 500 | | | CAD | | 500 | | | 06/20/12 | | | | 6 | |
State Street Bank & Trust Co. | | USD | | | 5,361 | | | CHF | | 4,871 | | | 05/15/12 | | | | 6 | |
State Street Bank & Trust Co. | | USD | | | 4,087 | | | EUR | | 3,092 | | | 05/02/12 | | | | 6 | |
State Street Bank & Trust Co. | | USD | | | 1,402 | | | GBP | | 865 | | | 05/15/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 323 | | | GBP | | 200 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 480 | | | GBP | | 300 | | | 06/20/12 | | | | 6 | |
State Street Bank & Trust Co. | | USD | | | 645 | | | GBP | | 400 | | | 06/20/12 | | | | 4 | |
State Street Bank & Trust Co. | | USD | | | 792 | | | GBP | | 500 | | | 06/20/12 | | | | 19 | |
State Street Bank & Trust Co. | | USD | | | 103 | | | HKD | | 800 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 129 | | | HKD | | 1,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 258 | | | HKD | | 2,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 387 | | | HKD | | 3,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 22,738 | | | JPY | | 1,846,586 | | | 05/15/12 | | | | 394 | |
State Street Bank & Trust Co. | | USD | | | 371 | | | JPY | | 30,000 | | | 06/20/12 | | | | 5 | |
State Street Bank & Trust Co. | | USD | | | 492 | | | JPY | | 40,000 | | | 06/20/12 | | | | 9 | |
State Street Bank & Trust Co. | | USD | | | 616 | | | JPY | | 50,000 | | | 06/20/12 | | | | 10 | |
State Street Bank & Trust Co. | | USD | | | 4,988 | | | SEK | | 33,517 | | | 05/15/12 | | | | (4 | ) |
State Street Bank & Trust Co. | | USD | | | 2,184 | | | SGD | | 2,711 | | | 05/15/12 | | | | 7 | |
State Street Bank & Trust Co. | | USD | | | 70 | | | THB | | 2,154 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 11 | | | THB | | 334 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 30 | | | USD | | 31 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 100 | | | USD | | 104 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | AUD | | | 190 | | | USD | | 195 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | AUD | | | 600 | | | USD | | 616 | | | 06/20/12 | | | | (6 | ) |
State Street Bank & Trust Co. | | CAD | | | 30 | | | USD | | 30 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 50 | | | USD | | 50 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 210 | | | USD | | 210 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | CAD | | | 800 | | | USD | | 803 | | | 06/20/12 | | | | (6 | ) |
State Street Bank & Trust Co. | | DKK | | | 35,711 | | | USD | | 6,347 | | | 05/15/12 | | | | (7 | ) |
State Street Bank & Trust Co. | | EUR | | | 1 | | | USD | | 1 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 278 | | | USD | | 368 | | | 05/15/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 1,946 | | | USD | | 2,573 | | | 05/15/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | EUR | | | 3,092 | | | USD | | 4,087 | | | 05/15/12 | | | | (6 | ) |
State Street Bank & Trust Co. | | GBP | | | 865 | | | USD | | 1,402 | | | 05/01/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | GBP | | | 24,404 | | | USD | | 39,501 | | | 05/15/12 | | | | (101 | ) |
State Street Bank & Trust Co. | | GBP | | | 150 | | | USD | | 237 | | | 06/20/12 | | | | (6 | ) |
State Street Bank & Trust Co. | | GBP | | | 1,000 | | | USD | | 1,605 | | | 06/20/12 | | | | (17 | ) |
State Street Bank & Trust Co. | | HKD | | | 515 | | | USD | | 66 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 227,171 | | | USD | | 29,278 | | | 05/15/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | HKD | | | 620 | | | USD | | 80 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 2,300 | | | USD | | 296 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | ILS | | | 19,325 | | | USD | | 5,152 | | | 05/15/12 | | | | 22 | |
State Street Bank & Trust Co. | | JPY | | | 25,000 | | | USD | | 300 | | | 06/20/12 | | | | (14 | ) |
State Street Bank & Trust Co. | | JPY | | | 40,000 | | | USD | | 485 | | | 06/20/12 | | | | (16 | ) |
State Street Bank & Trust Co. | | JPY | | | 130,000 | | | USD | | 1,594 | | | 06/20/12 | | | | (35 | ) |
State Street Bank & Trust Co. | | NOK | | | 47,738 | | | USD | | 8,328 | | | 05/15/12 | | | | (10 | ) |
UBS AG | | USD | | | 198 | | | DKK | | 1,115 | | | 05/03/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 136 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
UBS AG | | USD | | | 538 | | | DKK | | 3,026 | | | 05/03/12 | | | | — | |
UBS AG | | USD | | | 87 | | | EUR | | 66 | | | 05/03/12 | | | | — | |
UBS AG | | USD | | | 26 | | | EUR | | 20 | | | 05/04/12 | | | | — | |
UBS AG | | USD | | | 327 | | | EUR | | 247 | | | 05/04/12 | | | | — | |
UBS AG | | USD | | | 402 | | | EUR | | 304 | | | 05/04/12 | | | | 1 | |
Westpac Banking Corp. | | USD | | | 1,017 | | | AUD | | 984 | | | 06/20/12 | | | | 4 | |
Westpac Banking Corp. | | USD | | | 1,430 | | | CAD | | 1,423 | | | 06/20/12 | | | | 8 | |
Westpac Banking Corp. | | USD | | | 2,252 | | | GBP | | 1,438 | | | 06/20/12 | | | | 80 | |
Westpac Banking Corp. | | USD | | | 404 | | | HKD | | 3,133 | | | 06/20/12 | | | | — | |
Westpac Banking Corp. | | USD | | | 2,693 | | | JPY | | 225,500 | | | 06/20/12 | | | | 133 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | 1,660 | |
| | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Australia | | $ | 11,429 | | | $ | — | | | $ | — | | | $ | 11,429 | | | | 0.4 | |
Belgium | | | 18,598 | | | | — | | | | — | | | | 18,598 | | | | 0.6 | |
Bermuda | | | 9,457 | | | | — | | | | 73 | | | | 9,530 | | | | 0.3 | |
Brazil | | | 23,542 | | | | — | | | | — | | | | 23,542 | | | | 0.8 | |
Canada | | | 87,514 | | | | — | | | | — | | | | 87,514 | | | | 3.1 | |
Cayman Islands | | | 55,675 | | | | — | | | | — | | | | 55,675 | | | | 1.9 | |
China | | | 22,681 | | | | — | | | | — | | | | 22,681 | | | | 0.8 | |
Cyprus | | | 1,484 | | | | — | | | | — | | | | 1,484 | | | | 0.1 | |
Denmark | | | 9,174 | | | | — | | | | — | | | | 9,174 | | | | 0.3 | |
Egypt | | | 5,145 | | | | — | | | | — | | | | 5,145 | | | | 0.2 | |
Finland | | | 2,661 | | | | — | | | | — | | | | 2,661 | | | | 0.1 | |
France | | | 189,061 | | | | — | | | | — | | | | 189,061 | | | | 6.6 | |
Germany | | | 107,407 | | | | — | | | | — | | | | 107,407 | | | | 3.8 | |
Greece | | | 1,662 | | | | — | | | | — | | | | 1,662 | | | | 0.1 | |
Hong Kong | | | 8,188 | | | | — | | | | — | | | | 8,188 | | | | 0.3 | |
Hungary | | | 1,282 | | | | — | | | | — | | | | 1,282 | | | | — | * |
India | | | 4,320 | | | | — | | | | — | | | | 4,320 | | | | 0.2 | |
Indonesia | | | 1,591 | | | | — | | | | — | | | | 1,591 | | | | 0.1 | |
Ireland | | | 46,317 | | | | — | | | | — | | | | 46,317 | | | | 1.6 | |
Israel | | | 6,217 | | | | — | | | | — | | | | 6,217 | | | | 0.2 | |
Italy | | | 12,904 | | | | — | | | | — | | | | 12,904 | | | | 0.5 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Equity Fund | | 137 |
Russell Investment Company
Russell Global Equity Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Japan | | $ | 153,784 | | | $ | — | | | $ | — | | | $ | 153,784 | | | | 5.4 | |
Jersey | | | 26,794 | | | | — | | | | — | | | | 26,794 | | | | 0.9 | |
Lebanon | | | 1,325 | | | | — | | | | — | | | | 1,325 | | | | — | * |
Luxembourg | | | 3,821 | | | | — | | | | — | | | | 3,821 | | | | 0.1 | |
Mexico | | | 6,481 | | | | — | | | | — | | | | 6,481 | | | | 0.2 | |
Netherlands | | | 68,505 | | | | — | | | | — | | | | 68,505 | | | | 2.4 | |
Norway | | | 16,630 | | | | — | | | | — | | | | 16,630 | | | | 0.6 | |
Panama | | | 21,905 | | | | — | | | | — | | | | 21,905 | | | | 0.8 | |
Russia | | | 24,001 | | | | — | | | | — | | | | 24,001 | | | | 0.8 | |
Slovenia | | | 1,515 | | | | — | | | | — | | | | 1,515 | | | | 0.1 | |
South Africa | | | 10,205 | | | | — | | | | — | | | | 10,205 | | | | 0.4 | |
South Korea | | | 42,413 | | | | — | | | | — | | | | 42,413 | | | | 1.5 | |
Spain | | | 19,952 | | | | — | | | | — | | | | 19,952 | | | | 0.7 | |
Switzerland | | | 192,700 | | | | — | | | | — | | | | 192,700 | | | | 6.7 | |
Turkey | | | 8,244 | | | | — | | | | — | | | | 8,244 | | | | 0.3 | |
United Kingdom | | | 240,369 | | | | — | | | | — | | | | 240,369 | | | | 8.4 | |
United States | | | 1,187,327 | | | | — | | | | — | | | | 1,187,327 | | | | 41.5 | |
Virgin Islands, British | | | 6,475 | | | | — | | | | — | | | | 6,475 | | | | 0.2 | |
Preferred Stocks | | | 12,724 | | | | — | | | | 170 | | | | 12,894 | | | | 0.5 | |
Warrants & Rights | | | — | | | | 3 | | | | 549 | | | | 552 | | | | — | * |
Short-Term Investments | | | — | | | | 170,248 | | | | — | | | | 170,248 | | | | 6.0 | |
Other Securities | | | — | | | | 117,692 | | | | — | | | | 117,692 | | | | 4.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 2,671,479 | | | | 287,943 | | | | 792 | | | | 2,960,214 | | | | 103.6 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (3.6 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 2,174 | | | | — | | | | — | | | | 2,174 | | | | 0.1 | |
Foreign Currency Exchange Contracts | | | 7 | | | | 1,653 | | | | — | | | | 1,660 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 2,181 | | | $ | 1,653 | | | $ | — | | | $ | 3,834 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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) were used in determining a value for the period ended April 30, 2012 were less than 1% of net assets.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 138 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Fair Value of Derivative Instruments — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | | Foreign
Currency
Contracts | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | | | $ | 2,067 | |
Daily variation margin on futures contracts* | | | 1,540 | | | | — | |
| | | | | | | | |
Total | | $ | 1,540 | | | $ | 2,067 | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | |
Daily variation margin on futures contracts* | | $ | 634 | | | $ | — | |
Unrealized depreciation on foreign currency exchange contracts | | | — | | | | 407 | |
| | | | | | | | |
Total | | $ | 634 | | | $ | 407 | |
| | | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | | Foreign
Currency
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | |
Futures contracts | | $ | 19,308 | | | $ | — | |
Foreign currency-related transactions | | | — | | | | (3,054 | ) |
| | | | | | | | |
Total | | $ | 19,308 | | | $ | (3,054 | ) |
| | | | | | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | |
Futures contracts | | $ | (5,635 | ) | | $ | — | |
Foreign currency-related transactions | | | — | | | | 3,110 | |
| | | | | | | | |
Total | | $ | (5,635 | ) | | $ | 3,110 | |
| | | | | | | | |
| * | 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 and 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 Global Equity Fund | | 139 |
Russell Investment Company
Russell Global Equity Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 2,746,982 | |
Investments, at market**, *** | | | 2,960,214 | |
Cash (restricted) | | | 11,100 | |
Foreign currency holdings* | | | 1,807 | |
Unrealized appreciation on foreign currency exchange contracts | | | 2,067 | |
Receivables: | | | | |
Dividends and interest | | | 5,439 | |
Dividends from affiliated Russell money market funds | | | 33 | |
Investments sold | | | 27,450 | |
Fund shares sold | | | 4,870 | |
Foreign taxes recoverable | | | 1,047 | |
Daily variation margin on futures contracts | | | 175 | |
Prepaid expenses | | | 6 | |
| | | | |
Total assets | | | 3,014,208 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to custodian | | | 15 | |
Investments purchased | | | 31,497 | |
Fund shares redeemed | | | 3,365 | |
Accrued fees to affiliates | | | 2,626 | |
Other accrued expenses | | | 414 | |
Daily variation margin on futures contracts | | | 549 | |
Deferred tax liability | | | 83 | |
Unrealized depreciation on foreign currency exchange contracts | | | 407 | |
Payable upon return of securities loaned | | | 117,658 | |
| | | | |
Total liabilities | | | 156,614 | |
| | | | |
| | | | |
Net Assets | | $ | 2,857,594 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 140 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 8,586 | |
Accumulated net realized gain (loss) | | | (191,982 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 213,149 | |
Futures contracts | | | 2,174 | |
Foreign currency-related transactions | | | 1,718 | |
Shares of beneficial interest | | | 3,238 | |
Additional paid-in capital | | | 2,820,711 | |
| | | | |
Net Assets | | $ | 2,857,594 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 8.80 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 9.34 | |
Class A — Net assets | | $ | 9,411,702 | |
Class A — Shares outstanding ($.01 par value) | | | 1,069,821 | |
Net asset value per share: Class C(a) | | $ | 8.74 | |
Class C — Net assets | | $ | 14,010,522 | |
Class C — Shares outstanding ($.01 par value) | | | 1,603,428 | |
Net asset value per share: Class E(a) | | $ | 8.80 | |
Class E — Net assets | | $ | 46,995,516 | |
Class E — Shares outstanding ($.01 par value) | | | 5,338,160 | |
Net asset value per share: Class S(a) | | $ | 8.82 | |
Class S — Net assets | | $ | 1,547,837,679 | |
Class S — Shares outstanding ($.01 par value) | | | 175,442,046 | |
Net asset value per share: Class Y(a) | | $ | 8.83 | |
Class Y — Net assets | | $ | 1,239,339,026 | |
Class Y — Shares outstanding ($.01 par value) | | | 140,340,689 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 1,809 | |
** Securities on loan included in investments | | $ | 114,833 | |
*** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 287,940 | |
(a) 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.
| | |
| Russell Global Equity Fund | | 141 |
Russell Investment Company
Russell Global Equity Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 29,712 | |
Dividends from affiliated Russell money market funds | | | 103 | |
Securities lending income | | | 600 | |
Less foreign taxes withheld | | | (1,500 | ) |
| | | | |
Total investment income | | | 28,915 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 13,037 | |
Administrative fees | | | 683 | |
Custodian fees | | | 400 | |
Distribution fees - Class A | | | 12 | |
Distribution fees - Class C | | | 52 | |
Transfer agent fees - Class A | | | 9 | |
Transfer agent fees - Class C | | | 13 | |
Transfer agent fees - Class E | | | 43 | |
Transfer agent fees - Class S | | | 1,306 | |
Transfer agent fees - Class Y | | | 27 | |
Professional fees | | | 117 | |
Registration fees | | | 83 | |
Shareholder servicing fees - Class C | | | 17 | |
Shareholder servicing fees - Class E | | | 59 | |
Trustees’ fees | | | 31 | |
Printing fees | | | 93 | |
Miscellaneous | | | 24 | |
| | | | |
Expenses before reductions | | | 16,006 | |
Expense reductions | | | — | * |
| | | | |
Net expenses | | | 16,006 | |
| | | | |
Net investment income (loss) | | | 12,909 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 19,447 | |
Futures contracts | | | 19,308 | |
Foreign currency-related transactions | | | (3,343 | ) |
| | | | |
Net realized gain (loss) | | | 35,412 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 118,427 | |
Futures contracts | | | (5,635 | ) |
Foreign currency-related transactions | | | 3,048 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 115,840 | |
| | | | |
Net realized and unrealized gain (loss) | | | 151,252 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 164,161 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 142 | | | Russell Global Equity Fund |
Russell Investment Company
Russell Global Equity Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Period
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 12,909 | | | $ | 20,395 | |
Net realized gain (loss) | | | 35,412 | | | | 147,011 | |
Net change in unrealized appreciation (depreciation) | | | 115,840 | | | | (177,269 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 164,161 | | | | (9,863 | ) |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (58 | ) | | | (27 | ) |
Class E | | | (309 | ) | | | (107 | ) |
Class S | | | (12,540 | ) | | | (5,745 | ) |
Class Y | | | (12,921 | ) | | | (7,996 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (25,828 | ) | | | (13,875 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 40,999 | | | | 268,907 | |
Fund Reimbursements | | | — | | | | 61 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 179,332 | | | | 245,230 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 2,678,262 | | | | 2,433,032 | |
| | | | | | | | |
End of period | | $ | 2,857,594 | | | $ | 2,678,262 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 8,586 | | | $ | 21,505 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Equity Fund | | 143 |
Russell Investment Company
Russell Global Equity Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.37 | | | | .03 | | | | .45 | | | | .48 | | | | (.05 | ) | | | — | |
October 31, 2011 | | | 8.41 | | | | .04 | | | | (.05 | ) | | | (.01 | ) | | | (.03 | ) | | | — | |
October 31, 2010 | | | 7.29 | | | | .02 | | | | 1.19 | | | | 1.21 | | | | (.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(1) | | | 10.00 | | | | .05 | | | | 1.32 | | | | 1.37 | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.29 | | | | (.01 | ) | | | .46 | | | | .45 | | | | — | | | | — | |
October 31, 2011 | | | 8.37 | | | | (.03 | ) | | | (.05 | ) | | | (.08 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.26 | | | | (.04 | ) | | | 1.18 | | | | 1.14 | | | | (.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(1) | | | 10.00 | | | | — | (f) | | | 1.31 | | | | 1.31 | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.38 | | | | .03 | | | | .44 | | | | .47 | | | | (.05 | ) | | | — | |
October 31, 2011 | | | 8.42 | | | | .04 | | | | (.06 | ) | | | (.02 | ) | | | (.02 | ) | | | — | |
October 31, 2010 | | | 7.30 | | | | .02 | | | | 1.18 | | | | 1.20 | | | | (.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(1) | | | 10.00 | | | | .06 | | | | 1.31 | | | | 1.37 | | | | — | | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.41 | | | | .04 | | | | .44 | | | | .48 | | | | (.07 | ) | | | — | |
October 31, 2011 | | | 8.45 | | | | .06 | | | | (.06 | ) | | | — | | | | (.04 | ) | | | — | |
October 31, 2010 | | | 7.32 | | | | .04 | | | | 1.19 | | | | 1.23 | | | | (.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(1) | | | 10.00 | | | | .08 | | | | 1.31 | | | | 1.39 | | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.42 | | | | .04 | | | | .46 | | | | .50 | | | | (.09 | ) | | | — | |
October 31, 2011 | | | 8.46 | | | | .08 | | | | (.07 | ) | | | .01 | | | | (.05 | ) | | | — | |
October 31, 2010 | | | 7.32 | | | | .05 | | | | 1.20 | | | | 1.25 | | | | (.11 | ) | | | — | |
October 31, 2009 | | | 6.09 | | | | .11 | | | | 1.21 | | | | 1.32 | | | | (.09 | ) | | | — | |
October 31, 2008(4) | | | 8.16 | | | | — | (f) | | | (2.07 | ) | | | (2.07 | ) | | | — | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 144 | | | Russell Global Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | % Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.05 | ) | | | 8.80 | | | | 5.80 | | | | 9,412 | | | | 1.49 | | | | 1.49 | | | | .62 | | | | 45 | |
| | (.03 | ) | | | 8.37 | | | | (.18 | ) | | | 9,598 | | | | 1.50 | | | | 1.50 | | | | .45 | | | | 83 | |
| | (.09 | ) | | | 8.41 | | | | 16.66 | | | | 7,732 | | | | 1.49 | | | | 1.49 | | | | .22 | | | | 74 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 8.74 | | | | 5.43 | | | | 14,011 | | | | 2.24 | | | | 2.24 | | | | (.14 | ) | | | 45 | |
| | — | | | | 8.29 | | | | (.96 | ) | | | 14,319 | | | | 2.25 | | | | 2.25 | | | | (.31 | ) | | | 83 | |
| | (.03 | ) | | | 8.37 | | | | 15.76 | | | | 12,471 | | | | 2.24 | | | | 2.24 | | | | (.53 | ) | | | 74 | |
| | (.01 | ) | | | 7.26 | | | | 20.82 | | | | 8,672 | | | | 2.26 | | | | 2.26 | | | | .61 | | | | 127 | |
| | (.26 | ) | | | 6.02 | | | | (45.45 | ) | | | 7,534 | | | | 2.30 | | | | 2.30 | | | | .07 | | | | 160 | |
| | — | | | | 11.31 | | | | 13.10 | | | | 10,802 | | | | 2.33 | | | | 2.33 | | | | (.04 | ) | | | 62 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.05 | ) | | | 8.80 | | | | 5.73 | | | | 46,996 | | | | 1.49 | | | | 1.49 | | | | .61 | | | | 45 | |
| | (.02 | ) | | | 8.38 | | | | (.19 | ) | | | 47,601 | | | | 1.50 | | | | 1.50 | | | | .47 | | | | 83 | |
| | (.08 | ) | | | 8.42 | | | | 16.59 | | | | 36,042 | | | | 1.49 | | | | 1.49 | | | | .29 | | | | 74 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.07 | ) | | | 8.82 | | | | 5.85 | | | | 1,547,837 | | | | 1.24 | | | | 1.24 | | | | .87 | | | | 45 | |
| | (.04 | ) | | | 8.41 | | | | .01 | | | | 1,391,111 | | | | 1.25 | | | | 1.25 | | | | .70 | | | | 83 | |
| | (.10 | ) | | | 8.45 | | | | 16.92 | | | | 1,080,410 | | | | 1.24 | | | | 1.24 | | | | .50 | | | | 74 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.09 | ) | | | 8.83 | | | | 6.03 | | | | 1,239,338 | | | | 1.06 | | | | 1.06 | | | | 1.04 | | | | 45 | |
| | (.05 | ) | | | 8.42 | | | | .13 | | | | 1,215,633 | | | | 1.07 | | | | 1.07 | | | | .85 | | | | 83 | |
| | (.11 | ) | | | 8.46 | | | | 17.06 | | | | 1,296,377 | | | | 1.06 | | | | 1.06 | | | | .71 | | | | 74 | |
| | (.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 Global Equity Fund | | 145 |
Russell Investment Company
Russell Emerging Markets Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,062.13 | | | $ | 1,016.11 | |
Expenses Paid During Period* | | $ | 9.02 | | | $ | 8.82 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,058.41 | | | $ | 1,012.38 | |
Expenses Paid During Period* | | $ | 12.85 | | | $ | 12.56 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,062.09 | | | $ | 1,016.11 | |
Expenses Paid During Period* | | $ | 9.02 | | | $ | 8.82 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,063.10 | | | $ | 1,017.35 | |
Expenses Paid During Period* | | $ | 7.75 | | | $ | 7.57 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 146 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,064.47 | | | $ | 1,018.25 | |
Expenses Paid During Period* | | $ | 6.83 | | | $ | 6.67 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Emerging Markets Fund | | 147 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 90.6% | | | | | | | | |
| Argentina - 0.0% | | | | | | | | |
YPF SA - ADR | | | 54,900 | | | | 800 | |
| | | | | | | | |
| | |
| Austria - 0.1% | | | | | | | | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | | 29,798 | | | | 1,215 | |
| | | | | | | | |
| | |
| Bermuda - 1.6% | | | | | | | | |
Brilliance China Automotive Holdings, Ltd. (Æ)(Ñ) | | | 3,830,000 | | | | 4,156 | |
China Foods, Ltd. (Ñ) | | | 727,732 | | | | 788 | |
China Resources Gas Group, Ltd. | | | 615,749 | | | | 1,197 | |
Cosan, Ltd. Class A | | | 414,541 | | | | 5,737 | |
Credicorp, Ltd. | | | 94,448 | | | | 12,364 | |
Haier Electronics Group Co., Ltd. (Æ)(Ñ) | | | 1,610,000 | | | | 1,685 | |
Kosmos Energy, Ltd. (Æ) | | | 29,862 | | | | 364 | |
Skyworth Digital Holdings, Ltd. (Ñ) | | | 4,116,000 | | | | 1,687 | |
Yue Yuen Industrial Holdings, Ltd. | | | 745,000 | | | | 2,497 | |
| | | | | | | | |
| | | | | | | 30,475 | |
| | | | | | | | |
| | |
| Brazil - 11.4% | | | | | | | | |
All America Latina Logistica SA | | | 368,534 | | | | 1,678 | |
Amil Participacoes SA | | | 195,354 | | | | 1,901 | |
B2W Cia Global Do Varejo (Æ) | | | 66,353 | | | | 283 | |
Banco Bradesco SA - ADR | | | 561,016 | | | | 8,993 | |
Banco Bradesco SA | | | 66,200 | | | | 900 | |
Banco do Brasil SA | | | 1,096,300 | | | | 13,562 | |
Banco Santander Brasil SA - ADR (Æ) | | | 726,478 | | | | 5,863 | |
Banco Santander Brasil SA | | | 306,092 | | | | 2,495 | |
BM&FBovespa SA | | | 770,600 | | | | 4,334 | |
BR Properties SA | | | 93,600 | | | | 1,161 | |
Braskem SA - ADR (Ñ) | | | 50,200 | | | | 738 | |
BRF - Brasil Foods SA - ADR (Æ)(Ñ) | | | 310,466 | | | | 5,722 | |
BRF - Brasil Foods SA (Æ) | | | 29,000 | | | | 530 | |
Brookfield Incorporacoes SA | | | 864,600 | | | | 2,277 | |
CCR SA | | | 522,000 | | | | 4,053 | |
Centrais Eletricas Brasileiras SA (Æ) | | | 184,200 | | | | 1,575 | |
Centrais Eletricas Brasileiras SA - ADR (Æ) | | | 71,515 | | | | 609 | |
CETIP SA - Mercados Organizados | | | 211,900 | | | | 3,265 | |
Cia Brasileira de Distribuicao Grupo Pao de Acucar - ADR (Ñ) | | | 137,217 | | | | 6,453 | |
Cia de Bebidas das Americas - ADR | | | 149,800 | | | | 6,289 | |
Cia de Bebidas das Americas | | | 25,900 | | | | 916 | |
Cia de Saneamento Basico do Estado de Sao Paulo (Æ) | | | 212,840 | | | | 8,357 | |
Cia de Saneamento Basico do Estado de Sao Paulo - ADR (Æ)(Ñ) | | | 14,923 | | | | 1,181 | |
Cia de Saneamento de Minas Gerais -COPASA (Æ) | | | 99,460 | | | | 2,320 | |
Cia Energetica de Minas Gerais - ADR | | | 161,031 | | | | 3,973 | |
Cia Energetica de Minas Gerais | | | 83,375 | | | | 1,414 | |
Cia Hering | | | 170,100 | | | | 4,221 | |
Cielo SA | | | 326,240 | | | | 9,790 | |
Cosan SA Industria e Comercio | | | 67,600 | | | | 1,174 | |
CPFL Energia SA - ADR (Ñ) | | | 7,369 | | | | 208 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Cyrela Brazil Realty SA Empreendimentos e Participacoes | | | 52,300 | | | | 423 | |
Embraer SA (Æ) | | | 58,300 | | | | 503 | |
Embraer SA - ADR (Æ) | | | 29,214 | | | | 1,012 | |
Fibria Celulose SA - ADR (Æ)(Ñ) | | | 174,700 | | | | 1,387 | |
Gerdau SA - ADR (Ñ) | | | 242,300 | | | | 2,275 | |
Gol Linhas Aereas Inteligentes SA - ADR (Ñ) | | | 122,500 | | | | 649 | |
Hypermarcas SA | | | 156,400 | | | | 1,003 | |
Itau Unibanco Holding SA - ADR | | | 701,051 | | | | 11,000 | |
Itau Unibanco Holding SA | | | 29,100 | | | | 412 | |
JBS SA (Æ) | | | 285,500 | | | | 1,123 | |
Light SA | | | 394,200 | | | | 5,129 | |
LLX Logistica SA (Æ) | | | 325,500 | | | | 545 | |
Localiza Rent a Car SA | | | 48,500 | | | | 828 | |
Lojas Renner SA | | | 50,649 | | | | 1,628 | |
Marfrig Alimentos SA | | | 194,362 | | | | 1,070 | |
Mills Estruturas e Servicos de Engenharia SA | | | 42,300 | | | | 550 | |
Natura Cosmeticos SA | | | 66,500 | | | | 1,526 | |
Obrascon Huarte Lain Brasil SA | | | 42,100 | | | | 364 | |
Odontoprev SA | | | 714,300 | | | | 3,811 | |
OGX Petroleo e Gas Participacoes SA (Æ) | | | 1,049,184 | | | | 7,282 | |
Oi SA | | | 96,866 | | | | 655 | |
Oi SA - ADR (Ñ) | | | 90,539 | | | | 1,393 | |
PDG Realty SA Empreendimentos e Participacoes | | | 885,900 | | | | 2,091 | |
Petroleo Brasileiro SA - ADR | | | 1,035,519 | | | | 23,545 | |
Redecard SA | | | 244,600 | | | | 4,119 | |
Rossi Residencial SA | | | 598,900 | | | | 2,514 | |
Santos Brasil Participacoes SA | | | 59,500 | | | | 1,036 | |
Souza Cruz SA | | | 169,700 | | | | 2,643 | |
Sul America SA | | | 132,460 | | | | 1,084 | |
Telefonica Brasil SA - ADR (Ñ) | | | 69,853 | | | | 1,989 | |
Tim Participacoes SA - ADR (Ñ) | | | 265,877 | | | | 7,958 | |
Tim Participacoes SA | | | 41,800 | | | | 249 | |
Tractebel Energia SA | | | 50,801 | | | | 876 | |
Ultrapar Participacoes SA | | | 135,692 | | | | 3,082 | |
Vale SA Class B - ADR (Ñ) | | | 714,558 | | | | 15,568 | |
| | | | | | | | |
| | | | | | | 217,557 | |
| | | | | | | | |
| | |
| Canada - 0.4% | | | | | | | | |
First Quantum Minerals, Ltd. (Æ) | | | 395,480 | | | | 8,215 | |
| | | | | | | | |
| | |
| Cayman Islands - 4.7% | | | | | | | | |
51job, Inc. - ADR (Æ)(Ñ) | | | 29,400 | | | | 1,785 | |
AAC Technologies Holdings, Inc. | | | 306,000 | | | | 903 | |
Agile Property Holdings, Ltd. (Ñ) | | | 2,026,000 | | | | 2,648 | |
Anta Sports Products, Ltd. (Ñ) | | | 1,226,000 | | | | 1,212 | |
ASM Pacific Technology, Ltd. (Ñ) | | | 281,298 | | | | 3,811 | |
Baidu, Inc. - ADR (Æ) | | | 54,100 | | | | 7,179 | |
China Forestry Holdings Co., Ltd. (Ñ) | | | 1,692,100 | | | | 199 | |
China Liansu Group Holdings, Ltd. (Ñ) | | | 4,909,200 | | | | 3,088 | |
China Lumena New Materials Corp. (Ñ) | | | 14,242,000 | | | | 2,607 | |
China Mengniu Dairy Co., Ltd. | | | 446,000 | | | | 1,380 | |
China Resources Cement Holdings, Ltd. (Ñ) | | | 1,582,847 | | | | 1,257 | |
China Shanshui Cement Group, Ltd. | | | 1,764,000 | | | | 1,430 | |
| | | | |
| | 148 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Ctrip.com International, Ltd. - ADR (Æ)(Ñ) | | | 70,990 | | | | 1,538 | |
Daphne International Holdings, Ltd. | | | 1,230,000 | | | | 1,757 | |
Dongyue Group (Ñ) | | | 2,743,000 | | | | 2,054 | |
Eurasia Drilling Co., Ltd. - GDR | | | 27,926 | | | | 796 | |
Evergrande Real Estate Group, Ltd. (Ñ) | | | 7,087,000 | | | | 4,101 | |
Foxconn International Holdings, Ltd. (Æ) | | | 2,202,000 | | | | 1,044 | |
GCL-Poly Energy Holdings, Ltd. (Ñ) | | | 12,017,800 | | | | 3,113 | |
Hengan International Group Co., Ltd. | | | 461,500 | | | | 4,886 | |
Ju Teng International Holdings, Ltd. (Ñ) | | | 1,151,000 | | | | 242 | |
KWG Property Holding, Ltd. (Ñ) | | | 1,130,400 | | | | 747 | |
Li Ning Co., Ltd. (Ñ) | | | 1,186,270 | | | | 1,092 | |
Longfor Properties Co., Ltd. (Ñ) | | | 995,552 | | | | 1,583 | |
Melco Crown Entertainment, Ltd. - ADR (Æ)(Ñ) | | | 745,140 | | | | 11,565 | |
MGM China Holdings, Ltd. | | | 778,000 | | | | 1,442 | |
Mongolian Mining Corp. (Æ) | | | 979,552 | | | | 789 | |
Pacific Textile Holdings, Ltd. | | | 1,258,000 | | | | 835 | |
Parkson Retail Group, Ltd. (Ñ) | | | 1,596,308 | | | | 1,786 | |
Real Gold Mining, Ltd. (Ñ) | | | 633,000 | | | | 197 | |
Shenzhou International Group Holdings, Ltd. | | | 502,000 | | | | 945 | |
SINA Corp. (Æ)(Ñ) | | | 105,500 | | | | 6,173 | |
Soho China, Ltd. (Ñ) | | | 1,632,000 | | | | 1,268 | |
Tencent Holdings, Ltd. (Ñ) | | | 230,700 | | | | 7,249 | |
Tingyi Cayman Islands Holding Corp. (Ñ) | | | 612,000 | | | | 1,633 | |
Want Want China Holdings, Ltd. (Ñ) | | | 1,983,238 | | | | 2,434 | |
Wynn Macau, Ltd. | | | 376,400 | | | | 1,208 | |
Xingda International Holdings, Ltd. (Ñ) | | | 3,455,000 | | | | 1,505 | |
| | | | | | | | |
| | | | | | | 89,481 | |
| | | | | | | | |
| | |
| Chile - 0.6% | | | | | | | | |
Banco Santander Chile - ADR (Ñ) | | | 40,958 | | | | 3,351 | |
Cia Sud Americana de Vapores SA (Æ) | | | 7,052,100 | | | | 829 | |
Embotelladora Andina SA - ADR | | | 35,449 | | | | 1,127 | |
Sociedad Quimica y Minera de Chile SA - ADR (Ñ) | | | 118,300 | | | | 6,896 | |
| | | | | | | | |
| | | | | | | 12,203 | |
| | | | | | | | |
| | |
| China - 4.6% | | | | | | | | |
Anhui Conch Cement Co., Ltd. Class H (Ñ) | | | 1,839,887 | | | | 6,166 | |
Bank of China, Ltd. Class H | | | 6,628,400 | | | | 2,777 | |
China Construction Bank Corp. Class H | | | 5,827,120 | | | | 4,536 | |
China COSCO Holdings Co., Ltd. Class H (Ñ) | | | 1,846,500 | | | | 1,071 | |
China Life Insurance Co., Ltd. Class H | | | 508,000 | | | | 1,375 | |
China Merchants Bank Co., Ltd. Class H (Ñ) | | | 1,976,274 | | | | 4,289 | |
China Minsheng Banking Corp., Ltd. Class H (Ñ) | | | 2,945,000 | | | | 3,056 | |
China Petroleum & Chemical Corp. Class H | | | 8,772,000 | | | | 9,452 | |
China Shenhua Energy Co., Ltd. Class H | | | 1,393,697 | | | | 6,188 | |
China Telecom Corp., Ltd. Class H | | | 8,926,000 | | | | 4,809 | |
China Telecom Corp., Ltd. - ADR (Ñ) | | | 35,414 | | | | 1,895 | |
Dongfeng Motor Group Co., Ltd. Class H (Ñ) | | | 5,330,000 | | | | 10,511 | |
Great Wall Motor Co., Ltd. Class H (Ñ) | | | 268,500 | | | | 580 | |
Guangzhou Automobile Group Co., Ltd. Class H (Æ) | | | 893,300 | | | | 991 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Industrial & Commercial Bank of China Class H (Ñ) | | | 16,993,550 | | | | 11,346 | |
Jiangsu Expressway Co., Ltd. Class H | | | 3,159,000 | | | | 3,115 | |
PetroChina Co., Ltd. Class H | | | 2,628,000 | | | | 3,983 | |
PetroChina Co., Ltd. - ADR | | | 11,400 | | | | 1,697 | |
PICC Property & Casualty Co., Ltd. Class H | | | 1,596,000 | | | | 2,001 | |
Shandong Weigao Group Medical Polymer Co., Ltd. Class H (Ñ) | | | 1,848,000 | | | | 2,137 | |
Tsingtao Brewery Co., Ltd. Class H (Ñ) | | | 302,000 | | | | 1,833 | |
Weiqiao Textile Co. Class H (Ñ) | | | 364,500 | | | | 180 | |
Wumart Stores, Inc. Class H (Ñ) | | | 646,000 | | | | 1,494 | |
Yantai Changyu Pioneer Wine Co., Ltd. Class B | | | 93,107 | | | | 984 | |
Zoomlion Heavy Industry Science and Technology Co., Ltd. (Ñ) | | | 509,000 | | | | 760 | |
| | | | | | | | |
| | | | | | | 87,226 | |
| | | | | | | | |
| | |
| Colombia - 0.6% | | | | | | | | |
BanColombia SA - ADR | | | 76,435 | | | | 5,185 | |
BanColombia SA | | | 151,500 | | | | 2,484 | |
Ecopetrol SA - ADR (Ñ) | | | 73,700 | | | | 4,768 | |
| | | | | | | | |
| | | | | | | 12,437 | |
| | | | | | | | |
| | |
| Cyprus - 0.1% | | | | | | | | |
Global Ports Investments PLC - GDR | | | 33,211 | | | | 494 | |
Global Ports Investments PLC - GDR (Þ) | | | 32,776 | | | | 488 | |
Globaltrans Investment PLC - GDR | | | 67,967 | | | | 1,331 | |
| | | | | | | | |
| | | | | | | 2,313 | |
| | | | | | | | |
| | |
| Czech Republic - 0.1% | | | | | | | | |
Komercni Banka AS (Ñ) | | | 6,652 | | | | 1,223 | |
| | | | | | | | |
| | |
| Egypt - 0.4% | | | | | | | | |
Orascom Construction Industries | | | 95,733 | | | | 4,212 | |
Orascom Construction Industries - GDR | | | 68,816 | | | | 3,035 | |
| | | | | | | | |
| | | | | | | 7,247 | |
| | | | | | | | |
| | |
| Greece - 0.1% | | | | | | | | |
Coca Cola Hellenic Bottling Co. SA (Æ) | | | 93,694 | | | | 1,860 | |
| | | | | | | | |
| | |
| Hong Kong - 4.3% | | | | | | | | |
AIA Group, Ltd. | | | 1,480,000 | | | | 5,265 | |
China Merchants Holdings International Co., Ltd. | | | 1,078,000 | | | | 3,487 | |
China Mobile, Ltd. | | | 1,801,232 | | | | 19,954 | |
China Mobile, Ltd. - ADR | | | 339,052 | | | | 18,763 | |
China Overseas Land & Investment, Ltd. (Ñ) | | | 1,396,667 | | | | 3,028 | |
China Resources Enterprise, Ltd. (Ñ) | | | 1,540,480 | | | | 5,599 | |
China Unicom Hong Kong, Ltd. (Ñ) | | | 970,000 | | | | 1,725 | |
China Unicom Hong Kong, Ltd. - ADR (Ñ) | | | 284,416 | | | | 4,943 | |
CNOOC, Ltd. | | | 1,969,000 | | | | 4,198 | |
CNOOC, Ltd. - ADR (Ñ) | | | 31,200 | | | | 6,604 | |
Dah Chong Hong Holdings, Ltd. | | | 3,064,000 | | | | 3,262 | |
Lenovo Group, Ltd. | | | 5,850,000 | | | | 5,625 | |
| | | | | | | | |
| | | | | | | 82,453 | |
| | | | | | | | |
| | |
| Russell Emerging Markets Fund | | 149 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Hungary - 0.6% | | | | | | | | |
Magyar Telekom Telecommunications PLC | | | 525,115 | | | | 1,323 | |
MOL Hungarian Oil and Gas PLC (Æ)(Ñ) | | | 42,756 | | | | 3,533 | |
MOL Hungarian Oil and Gas PLC - ADR (Æ) | | | 4,213 | | | | 179 | |
OTP Bank PLC (Ñ) | | | 264,812 | | | | 4,657 | |
Richter Gedeon Nyrt | | | 8,273 | | | | 1,432 | |
| | | | | | | | |
| | | | | | | 11,124 | |
| | | | | | | | |
| | |
| India - 5.5% | | | | | | | | |
Aban Offshore, Ltd. | | | 63,929 | | | | 502 | |
Allahabad Bank | | | 287,635 | | | | 906 | |
Ambuja Cements, Ltd. | | | 1,248,973 | | | | 3,572 | |
Apollo Tyres, Ltd. | | | 418,677 | | | | 718 | |
Axis Bank, Ltd. | | | 200,375 | | | | 4,209 | |
Bajaj Auto, Ltd. | | | 188,629 | | | | 5,814 | |
Balrampur Chini Mills, Ltd. Class A | | | 738,598 | | | | 771 | |
Bank of Baroda | | | 107,568 | | | | 1,571 | |
Bank of India | | | 331,600 | | | | 2,224 | |
Canara Bank | | | 335,647 | | | | 2,781 | |
Dabur India, Ltd. Class A (Å) | | | 1,344,313 | | | | 2,853 | |
Financial Technologies India, Ltd. | | | 28,453 | | | | 369 | |
Gitanjali Gems, Ltd. | | | 162,693 | | | | 1,009 | |
HCL Technologies, Ltd. | | | 182,934 | | | | 1,777 | |
HDFC Bank, Ltd. - ADR | | | 120,000 | | | | 4,120 | |
Hero Motocorp, Ltd. | | | 56,194 | | | | 2,390 | |
Hindustan Unilever, Ltd. | | | 374,209 | | | | 2,965 | |
Housing Development & Infrastructure, Ltd. (Æ) | | | 579,096 | | | | 885 | |
ICICI Bank, Ltd. - ADR (Ñ) | | | 171,200 | | | | 5,802 | |
Indian Oil Corp., Ltd. | | | 129,730 | | | | 654 | |
Infosys, Ltd. - ADR (Ñ) | | | 107,393 | | | | 5,085 | |
Infosys, Ltd. | | | 61,304 | | | | 2,864 | |
ITC, Ltd. | | | 321,995 | | | | 1,500 | |
Jindal Poly Films, Ltd. | | | 67,394 | | | | 250 | |
Jubilant Foodworks, Ltd. (Æ) | | | 44,673 | | | | 1,005 | |
Kotak Mahindra Bank, Ltd. | | | 295,870 | | | | 3,272 | |
Lupin, Ltd. (Å) | | | 30,501 | | | | 320 | |
Mahindra & Mahindra, Ltd. | | | 85,480 | | | | 1,152 | |
Maruti Suzuki India, Ltd. | | | 79,266 | | | | 2,063 | |
MRF, Ltd. | | | 6,392 | | | | 1,392 | |
Petronet LNG, Ltd. | | | 546,411 | | | | 1,437 | |
Punjab National Bank | | | 97,378 | | | | 1,571 | |
Reliance Industries, Ltd. - GDR (Þ) | | | 87,327 | | | | 2,464 | |
State Bank of India | | | 23,900 | | | | 970 | |
Steel Authority of India, Ltd. | | | 486,625 | | | | 874 | |
Tata Consultancy Services, Ltd. | | | 156,874 | | | | 3,711 | |
Tata Motors, Ltd. | | | 1,295,356 | | | | 7,781 | |
Tata Motors, Ltd. - ADR (Ñ) | | | 403,700 | | | | 12,010 | |
Tata Motors, Ltd. Class A | | | 335,974 | | | | 1,153 | |
Titan Industries, Ltd. | | | 199,347 | | | | 881 | |
TVS Motor Co., Ltd. | | | 1,049,791 | | | | 817 | |
Ultratech Cement, Ltd. | | | 86,299 | | | | 2,333 | |
Union Bank of India | | | 486,750 | | | | 2,071 | |
United Phosphorus, Ltd. (Æ) | | | 263,156 | | | | 581 | |
United Spirits, Ltd. | | | 66,482 | | | | 986 | |
| | | | | | | | |
| | | | | | | 104,435 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Indonesia - 3.8% | | | | | | | | |
AKR Corporindo Tbk PT | | | 1,954,500 | | | | 877 | |
Alam Sutera Realty Tbk PT | | | 54,943,500 | | | | 3,587 | |
Astra International Tbk PT | | | 1,251,500 | | | | 9,668 | |
Bakrie Sumatera Plantations Tbk PT | | | 14,276,000 | | | | 466 | |
Bank Danamon Indonesia Tbk PT | | | 965,281 | | | | 588 | |
Bank Negara Indonesia Persero Tbk PT | | | 10,346,570 | | | | 4,531 | |
Bank Rakyat Indonesia Persero Tbk PT | | | 19,899,558 | | | | 14,399 | |
Charoen Pokphand Indonesia Tbk PT | | | 8,633,984 | | | | 2,584 | |
Gajah Tunggal Tbk PT | | | 1,891,000 | | | | 530 | |
Gudang Garam Tbk PT | | | 188,500 | | | | 1,214 | |
Harum Energy Tbk PT | | | 4,078,500 | | | | 3,173 | |
Indocement Tunggal Prakarsa Tbk PT | | | 1,765,071 | | | | 3,467 | |
Indofood Sukses Makmur Tbk PT | | | 2,603,500 | | | | 1,374 | |
Jasa Marga Persero Tbk PT | | | 6,370,000 | | | | 3,708 | |
Kalbe Farma Tbk PT | | | 6,497,000 | | | | 2,845 | |
Media Nusantara Citra Tbk PT | | | 1,924,500 | | | | 471 | |
Mitra Adiperkasa Tbk PT | | | 576,500 | | | | 436 | |
Perusahaan Gas Negara Persero Tbk PT | | | 5,912,000 | | | | 2,155 | |
Ramayana Lestari Sentosa Tbk PT | | | 5,097,992 | | | | 477 | |
Semen Gresik Persero Tbk PT | | | 3,233,525 | | | | 4,275 | |
Tambang Batubara Bukit Asam Persero Tbk PT | | | 1,040,500 | | | | 2,089 | |
Telekomunikasi Indonesia Persero Tbk PT | | | 5,267,598 | | | | 4,872 | |
United Tractors Tbk PT | | | 1,697,257 | | | | 5,466 | |
| | | | | | | | |
| | | | | | | 73,252 | |
| | | | | | | | |
| | |
| Ireland - 0.1% | | | | | | | | |
Dragon Oil PLC | | | 266,000 | | | | 2,532 | |
| | | | | | | | |
| | |
| Israel - 0.1% | | | | | | | | |
Israel Chemicals, Ltd. | | | 129,393 | | | | 1,484 | |
| | | | | | | | |
| | |
| Jersey - 0.1% | | | | | | | | |
West China Cement, Ltd. (Ñ) | | | 4,915,485 | | | | 1,191 | |
| | | | | | | | |
| | |
| Kazakhstan - 0.1% | | | | | | | | |
KazMunaiGas Exploration Production JSC - GDR | | | 99,770 | | | | 1,995 | |
| | | | | | | | |
| | |
| Luxembourg - 1.8% | | | | | | | | |
Kernel Holding SA (Æ) | | | 114,297 | | | | 2,519 | |
MHP SA - GDR (Æ) | | | 92,800 | | | | 1,271 | |
Millicom International Cellular SA (Ñ) | | | 36,500 | | | | 3,877 | |
SHS Genesis Smaller Co. | | | 206,331 | | | | 22,494 | |
Tenaris SA - ADR (Ñ) | | | 88,330 | | | | 3,462 | |
Ternium SA - ADR | | | 54,057 | | | | 1,282 | |
| | | | | | | | |
| | | | | | | 34,905 | |
| | | | | | | | |
| | |
| Malaysia - 1.5% | | | | | | | | |
Axiata Group BHD | | | 3,387,400 | | | | 5,944 | |
CIMB Group Holdings BHD | | | 853,102 | | | | 2,089 | |
DiGi.Com BHD - GDR | | | 2,741,000 | | | | 3,660 | |
DRB-Hicom BHD | | | 1,035,800 | | | | 873 | |
Gamuda BHD | | | 1,131,900 | | | | 1,332 | |
KLCC Property Holdings BHD | | | 520,400 | | | | 583 | |
Kuala Lumpur Kepong BHD | | | 362,400 | | | | 2,831 | |
| | | | |
| | 150 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Kulim Malaysia BHD | | | 606,200 | | | | 847 | |
Lafarge Malayan Cement BHD (Æ) | | | 272,441 | | | | 647 | |
Lion Industries Corp. BHD | | | 1,080,600 | | | | 500 | |
Malayan Banking BHD | | | 1,322,896 | | | | 3,773 | |
PPB Group BHD | | | 253,100 | | | | 1,398 | |
RHB Capital BHD | | | 504,057 | | | | 1,228 | |
Telekom Malaysia BHD | | | 999,600 | | | | 1,781 | |
UEM Land Holdings BHD (Æ) | | | 2,163,600 | | | | 1,437 | |
| | | | | | | | |
| | | | | | | 28,923 | |
| | | | | | | | |
| | |
| Mexico - 4.2% | | | | | | | | |
Alfa SAB de CV Class A | | | 134,400 | | | | 1,919 | |
America Movil SAB de CV - ADR | | | 730,082 | | | | 19,457 | |
Cemex SAB de CV Class Preference (Æ) | | | 2,466,456 | | | | 1,780 | |
Cemex SAB de CV - ADR (Æ)(Ñ) | | | 1,491,495 | | | | 10,784 | |
Coca-Cola Femsa SAB de CV - ADR | | | 34,200 | | | | 3,623 | |
Corp. Moctezuma SAB de CV (Ñ) | | | 300,663 | | | | 704 | |
Desarrolladora Homex SAB de CV (Æ)(Ñ) | | | 228,700 | | | | 640 | |
Desarrolladora Homex SAB de CV - ADR (Æ)(Ñ) | | | 32,667 | | | | 549 | |
Empresas ICA SAB de CV - ADR (Æ)(Ñ) | | | 153,000 | | | | 1,106 | |
Fomento Economico Mexicano SAB de CV - ADR | | | 141,477 | | | | 11,496 | |
Fomento Economico Mexicano SAB de CV | | | 57,400 | | | | 467 | |
Gruma SAB de CV Class B (Æ) | | | 361,220 | | | | 1,001 | |
Grupo Aeroportuario del Sureste SA de CV Class B (Ñ) | | | 109,400 | | | | 892 | |
Grupo Aeroportuario del Sureste SAB de CV - ADR (Ñ) | | | 36,868 | | | | 3,020 | |
Grupo Financiero Banorte SAB de CV Class O (Ñ) | | | 1,121,167 | | | | 5,432 | |
Grupo Financiero Inbursa SAB de CV Class O | | | 1,253,154 | | | | 2,750 | |
Grupo Mexico SAB de CV | | | 1,028,700 | | | | 3,174 | |
Grupo Televisa SAB - ADR | | | 200,000 | | | | 4,394 | |
Megacable Holdings SAB de CV (Æ) | | | 324,803 | | | | 698 | |
Promotora y Operadora de Infraestructura SAB de CV (Æ) | | | 77,300 | | | | 374 | |
Wal-Mart de Mexico SAB de CV | | | 2,049,990 | | | | 5,862 | |
| | | | | | | | |
| | | | | | | 80,122 | |
| | | | | | | | |
| | |
| Netherlands - 0.1% | | | | | | | | |
Yandex NV Class A (Æ) | | | 84,500 | | | | 2,004 | |
| | | | | | | | |
| | |
| Nigeria - 0.4% | | | | | | | | |
First City Monument Bank PLC | | | 18,704,920 | | | | 653 | |
Guaranty Trust Bank PLC | | | 9,696,924 | | | | 987 | |
Guaranty Trust Bank PLC - GDR | | | 172,487 | | | | 992 | |
Nigerian Breweries PLC | | | 2,212,295 | | | | 1,548 | |
United Bank for Africa PLC Class A (Æ) | | | 21,809,472 | | | | 518 | |
Zenith Bank PLC | | | 26,334,069 | | | | 2,370 | |
| | | | | | | | |
| | | | | | | 7,068 | |
| | | | | | | | |
| | |
| Panama - 0.2% | | | | | | | | |
Copa Holdings SA Class A | | | 37,000 | | | | 3,009 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Peru - 0.1% | | | | | | | | |
Cia de Minas Buenaventura SA - ADR | | | 68,500 | | | | 2,827 | |
| | | | | | | | |
| | |
| Philippines - 1.2% | | | | | | | | |
Aboitiz Power Corp. | | | 1,014,900 | | | | 817 | |
Alliance Global Group, Inc. | | | 12,807,900 | | | | 3,749 | |
DMCI Holdings, Inc. | | | 4,593,100 | | | | 6,495 | |
Megaworld Corp. | | | 54,950,000 | | | | 2,824 | |
Metropolitan Bank & Trust - ADR | | | 2,560,262 | | | | 5,543 | |
Philex Mining Corp. | | | 2,177,100 | | | | 1,287 | |
Semirara Mining Corp. Class A | | | 294,030 | | | | 1,755 | |
| | | | | | | | |
| | | | | | | 22,470 | |
| | | | | | | | |
| | |
| Poland - 0.7% | | | | | | | | |
Bank Pekao SA | | | 53,759 | | | | 2,535 | |
KGHM Polska Miedz SA | | | 257,624 | | | | 11,340 | |
| | | | | | | | |
| | | | | | | 13,875 | |
| | | | | | | | |
| | |
| Russia - 6.4% | | | | | | | | |
Gazprom OAO - ADR | | | 1,851,658 | | | | 21,239 | |
Gazprom OAO - ADR (Æ) | | | 1,343,714 | | | | 15,506 | |
LSR Group - GDR | | | 188,078 | | | | 1,006 | |
LSR Group | | | 6,272 | | | | 144 | |
Lukoil OAO - ADR (Æ) | | | 341,190 | | | | 20,932 | |
Lukoil OAO - ADR | | | 298,800 | | | | 18,331 | |
Magnit OJSC | | | 34,288 | | | | 4,317 | |
MMC Norilsk Nickel OJSC - ADR (Ñ) | | | 57,961 | | | | 1,028 | |
Mobile Telesystems OJSC - ADR (Ñ) | | | 132,900 | | | | 2,600 | |
Nomos-Bank - GDR (Æ)(Þ) | | | 39,852 | | | | 536 | |
Nomos-Bank - GDR (Æ) | | | 23,995 | | | | 323 | |
NovaTek OAO - GDR | | | 23,189 | | | | 2,947 | |
Novorossiysk Commercial Sea Port PJSC - GDR | | | 127,338 | | | | 1,070 | |
Novorossiysk Commercial Sea Port PJSC - GDR (Þ) | | | 23,647 | | | | 199 | |
Raspadskaya OAO | | | 362,307 | | | | 1,203 | |
Rosneft Oil Co. - GDR | | | 521,388 | | | | 3,720 | |
Sberbank of Russia | | | 6,488,763 | | | | 20,764 | |
Sberbank of Russia - ADR | | | 73,500 | | | | 952 | |
Surgutneftegas OJSC - ADR | | | 454,808 | | | | 4,539 | |
VTB Bank OJSC - GDR | | | 226,097 | | | | 948 | |
| | | | | | | | |
| | | | | | | 122,304 | |
| | | | | | | | |
| | |
| South Africa - 5.5% | | | | | | | | |
ABSA Group, Ltd. | | | 172,633 | | | | 3,553 | |
African Bank Investments, Ltd. | | | 202,578 | | | | 1,012 | |
Anglo American Platinum, Ltd. (Ñ) | | | 15,585 | | | | 1,010 | |
ArcelorMittal South Africa, Ltd. Class H (Ñ) | | | 163,833 | | | | 1,243 | |
Aspen Pharmacare Holdings, Ltd. (Æ) | | | 223,253 | | | | 3,610 | |
Astral Foods, Ltd. | | | 112,396 | | | | 1,778 | |
AVI, Ltd. | | | 146,454 | | | | 908 | |
Barloworld, Ltd. - ADR | | | 133,141 | | | | 1,679 | |
Bidvest Group, Ltd. (Æ)(Ñ) | | | 269,322 | | | | 6,370 | |
Exxaro Resources, Ltd. (Ñ) | | | 201,697 | | | | 5,371 | |
FirstRand, Ltd. | | | 2,569,218 | | | | 8,352 | |
Foschini Group, Ltd. (The) | | | 23,589 | | | | 391 | |
| | |
| Russell Emerging Markets Fund | | 151 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Impala Platinum Holdings, Ltd. (Ñ) | | | 162,950 | | | | 3,172 | |
Imperial Holdings, Ltd. | | | 242,925 | | | | 5,276 | |
Lewis Group, Ltd. | | | 108,800 | | | | 1,057 | |
Liberty Holdings, Ltd. | | | 53,770 | | | | 610 | |
Life Healthcare Group Holdings, Ltd. | | | 920,639 | | | | 3,184 | |
Massmart Holdings, Ltd. | | | 16,353 | | | | 352 | |
MMI Holdings, Ltd./South Africa | | | 233,089 | | | | 525 | |
Mondi, Ltd. (Ñ) | | | 153,465 | | | | 1,416 | |
Mr Price Group, Ltd. | | | 289,322 | | | | 3,915 | |
MTN Group, Ltd. (Ñ) | | | 111,971 | | | | 1,957 | |
Murray & Roberts Holdings, Ltd. (Æ)(Ñ) | | | 182,924 | | | | 673 | |
Nedbank Group, Ltd. | | | 73,889 | | | | 1,611 | |
Pick n Pay Stores, Ltd. | | | 210,245 | | | | 1,218 | |
Remgro, Ltd. | | | 193,965 | | | | 3,285 | |
RMB Holdings, Ltd. | | | 445,123 | | | | 1,924 | |
Sanlam, Ltd. | | | 536,437 | | | | 2,308 | |
Sasol, Ltd. - ADR | | | 136,743 | | | | 6,493 | |
Shoprite Holdings, Ltd. - ADR (Ñ) | | | 464,665 | | | | 8,034 | |
Spar Group, Ltd. (The) - ADR | | | 73,494 | | | | 1,149 | |
Standard Bank Group, Ltd. | | | 982,030 | | | | 14,497 | |
Truworths International, Ltd. | | | 145,776 | | | | 1,556 | |
Vodacom Group, Ltd. - ADR | | | 251,311 | | | | 3,495 | |
Woolworths Holdings, Ltd. (Ñ) | | | 287,015 | | | | 1,795 | |
| | | | | | | | |
| | | | | | | 104,779 | |
| | | | | | | | |
| | |
| South Korea - 13.1% | | | | | | | | |
Amorepacific Corp. | | | 2,496 | | | | 2,396 | |
Amorepacific Group | | | 5,339 | | | | 1,344 | |
Cheil Industries, Inc. | | | 40,587 | | | | 3,484 | |
CJ CheilJedang Corp. | | | 4,000 | | | | 1,324 | |
Daelim Industrial Co., Ltd. | | | 15,860 | | | | 1,474 | |
Daesang Corp. | | | 55,560 | | | | 895 | |
DGB Financial Group, Inc. | | | 135,060 | | | | 1,584 | |
Dongbu Insurance Co., Ltd. | | | 35,040 | | | | 1,401 | |
Dongwon F&B Co., Ltd. | | | 10,173 | | | | 620 | |
Golfzon Co., Ltd. (Ñ) | | | 5,456 | | | | 337 | |
GS Retail Co., Ltd. | | | 7,690 | | | | 162 | |
Hana Financial Group, Inc. | | | 73,600 | | | | 2,530 | |
Hankook Tire Co., Ltd. | | | 62,780 | | | | 2,661 | |
Himart Co., Ltd. | | | 5,315 | | | | 275 | |
Hyosung Corp. (Ñ) | | | 31,490 | | | | 1,613 | |
Hyundai Marine & Fire Insurance Co., Ltd. | | | 75,570 | | | | 1,939 | |
Hyundai Mobis | | | 12,692 | | | | 3,453 | |
Hyundai Motor Co. | | | 69,447 | | | | 16,500 | |
KB Financial Group, Inc. - ADR | | | 108,170 | | | | 3,670 | |
KB Financial Group, Inc. | | | 92,249 | | | | 3,143 | |
KCC Corp. | | | 8,110 | | | | 2,088 | |
Kia Motors Corp. | | | 225,548 | | | | 16,645 | |
KIWOOM Securities Co., Ltd. | | | 49,923 | | | | 2,973 | |
Korea Electric Power Corp. (Æ) | | | 257,283 | | | | 4,940 | |
KT Corp. - ADR | | | 200,000 | | | | 2,570 | |
KT Corp. | | | 112,860 | | | | 2,936 | |
KT&G Corp. | | | 74,540 | | | | 5,118 | |
LG Chem, Ltd. | | | 5,089 | | | | 1,281 | |
LG Display Co., Ltd. (Æ) | | | 315,300 | | | | 6,947 | |
LG Display Co., Ltd. - ADR (Ñ) | | | 159,393 | | | | 1,780 | |
LG Electronics, Inc. Class H (Ñ) | | | 3,767 | | | | 234 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
LG Fashion Corp. | | | 90 | | | | 3 | |
LG Innotek Co., Ltd. (Æ) | | | 9,185 | | | | 662 | |
LIG Insurance Co., Ltd. | | | 45,570 | | | | 948 | |
Lotte Chilsung Beverage Co., Ltd. (Ñ) | | | 2,345 | | | | 2,652 | |
Lotte Confectionery Co., Ltd. | | | 1,466 | | | | 2,221 | |
Lumens Co., Ltd. (Æ)(Ñ) | | | 160,860 | | | | 806 | |
MegaStudy Co., Ltd. | | | 5,960 | | | | 556 | |
Meritz Fire & Marine Insurance Co., Ltd. | | | 82,146 | | | | 850 | |
NHN Corp. | | | 39,407 | | | | 8,927 | |
NongShim Co., Ltd. (Ñ) | | | 2,444 | | | | 490 | |
OCI Co., Ltd. (Ñ) | | | 11,810 | | | | 2,236 | |
POSCO - ADR (Ñ) | | | 12,100 | | | | 1,007 | |
Electro-Mechanics Co., Ltd. | | | 54,506 | | | | 5,281 | |
Samsung Electronics Co., Ltd. | | | 56,357 | | | | 69,316 | |
Samsung Electronics Co., Ltd. - GDR | | | 32,877 | | | | 14,045 | |
Samsung Fire & Marine Insurance Co., Ltd. | | | 56,748 | | | | 10,846 | |
Samsung Life Insurance Co., Ltd. | | | 33,163 | | | | 2,935 | |
Samyang Corp. (Æ) | | | 3,786 | | | | 159 | |
Samyang Holdings Corp. (Ñ) | | | 4,030 | | | | 214 | |
Shinhan Financial Group Co., Ltd. | | | 117,549 | | | | 4,109 | |
SK Holdings Co., Ltd. | | | 2,991 | | | | 322 | |
SK Hynix, Inc. (Æ)(Ñ) | | | 545,210 | | | | 13,532 | |
SK Innovation Co., Ltd. | | | 10,549 | | | | 1,475 | |
SK Telecom Co., Ltd. - ADR (Ñ) | | | 423,657 | | | | 5,728 | |
SKC Co., Ltd. (Ñ) | | | 51,020 | | | | 1,767 | |
Taeyoung Engineering & Construction Co., Ltd. | | | 23,120 | | | | 102 | |
| | | | | | | | |
| | | | | | | 249,506 | |
| | | | | | | | |
| | |
| Taiwan - 5.4% | | | | | | | | |
Advanced Semiconductor Engineering, Inc. | | | 4,520,355 | | | | 4,573 | |
Advanced Semiconductor Engineering, Inc. - ADR | | | 601,329 | | | | 3,049 | |
Advantech Co., Ltd. | | | 194,000 | | | | 659 | |
Altek Corp. | | | 2,811,657 | | | | 2,065 | |
AU Optronics Corp. | | | 6,891,202 | | | | 3,091 | |
Catcher Technology Co., Ltd. | | | 265,000 | | | | 1,697 | |
Cathay Financial Holding Co., Ltd. | | | 1,544,500 | | | | 1,634 | |
Chunghwa Picture Tubes | | | 11,059,000 | | | | 606 | |
Chunghwa Telecom Co., Ltd. - ADR (Ñ) | | | 48,900 | | | | 1,515 | |
Delta Electronics, Inc. | | | 454,970 | | | | 1,352 | |
Epistar Corp. | | | 923,000 | | | | 2,244 | |
Far EasTone Telecommunications Co., Ltd. | | | 287,000 | | | | 624 | |
Gigabyte Technology Co., Ltd. | | | 1,261,000 | | | | 1,092 | |
HannStar Display Corp. (Æ) | | | 216,000 | | | | 21 | |
Hiwin Technologies Corp. | | | 310,000 | | | | 2,940 | |
Hon Hai Precision Industry Co., Ltd. | | | 3,334,524 | | | | 10,549 | |
HTC Corp. | | | 31,450 | | | | 477 | |
Largan Precision Co., Ltd. | | | 159,000 | | | | 2,526 | |
LITE-ON IT Corp. | | | 931,279 | | | | 944 | |
Lite-On Technology Corp. | | | 1,338,669 | | | | 1,634 | |
MediaTek, Inc. | | | 194,022 | | | | 1,681 | |
Merry Electronics Co., Ltd. | | | 457,000 | | | | 842 | |
Pegatron Corp. | | | 2,297,000 | | | | 3,327 | |
President Chain Store Corp. | | | 212,000 | | | | 1,140 | |
Quanta Computer, Inc. | | | 1,070,000 | | | | 2,813 | |
Richtek Technology Corp. | | | 97,706 | | | | 595 | |
| | | | |
| | 152 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Standard Foods Corp. | | | 259,000 | | | | 807 | |
Star Comgistic Capital Co., Ltd. | | | 864,200 | | | | 467 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | | 8,993,133 | | | | 26,725 | |
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR | | | 536,900 | | | | 8,365 | |
Uni-President Enterprises Corp. | | | 1,482,874 | | | | 2,307 | |
United Microelectronics Corp. | | | 8,663,795 | | | | 4,538 | |
Vanguard International Semiconductor Corp. | | | 1,588,000 | | | | 758 | |
Winbond Electronics Corp. (Æ) | | | 4,811,000 | | | | 805 | |
Wistron Corp. | | | 2,689,348 | | | | 4,037 | |
Yageo Corp. | | | 3,955,000 | | | | 1,137 | |
| | | | | | | | |
| | | | | | | 103,636 | |
| | | | | | | | |
| | |
| Thailand - 3.7% | | | | | | | | |
Advanced Info Service PCL | | | 529,600 | | | | 3,152 | |
Airports of Thailand PCL | | | 295,700 | | | | 596 | |
Bangkok Bank PCL | | | 624,700 | | | | 3,930 | |
Bangkok Dusit Medical Services PCL Class F | | | 2,511,800 | | | | 7,515 | |
Bangkok Life Assurance PCL | | | 1,273,700 | | | | 1,936 | |
Bank of Ayudhya PCL (Å) | | | 4,543,390 | | | | 4,172 | |
Banpu PCL | | | 95,350 | | | | 1,724 | |
Berli Jucker PCL | | | 505,300 | | | | 703 | |
Big C Supercenter PCL | | | 46,800 | | | | 289 | |
Central Pattana PCL | | | 248,500 | | | | 406 | |
Charoen Pokphand Foods PCL | | | 1,435,600 | | | | 1,902 | |
CP ALL PCL | | | 1,006,400 | | | | 2,496 | |
Delta Electronics Thailand PCL | | | 1,980,600 | | | | 1,591 | |
Hana Microelectronics PCL | | | 456,900 | | | | 333 | |
Italian-Thai Development PCL (Æ) | | | 4,438,300 | | | | 528 | |
Land and Houses PCL | | | 3,379,300 | | | | 874 | |
LPN Development PCL | | | 2,497,100 | | | | 1,405 | |
PTT Exploration & Production PCL | | | 824,300 | | | | 4,758 | |
PTT PCL | | | 642,000 | | | | 7,307 | |
SC Asset Corp. PCL | | | 2,838,800 | | | | 1,366 | |
Siam Cement PCL | | | 118,100 | | | | 1,344 | |
Siam Commercial Bank PCL | | | 1,700,501 | | | | 8,323 | |
Sri Trang Agro-Industry PCL | | | 4,308,700 | | | | 2,830 | |
Thai Beverage PCL | | | 8,379,890 | | | | 2,235 | |
Thai Oil PCL | | | 803,700 | | | | 1,764 | |
Tisco Financial Group PCL | | | 1,954,700 | | | | 2,670 | |
TMB Bank PCL | | | 13,686,800 | | | | 757 | |
Total Access Communication PCL | | | 1,179,500 | | | | 3,203 | |
| | | | | | | | |
| | | | | | | 70,109 | |
| | | | | | | | |
| | |
| Turkey - 2.8% | | | | | | | | |
Akfen Holding AS (Æ) | | | 84,610 | | | | 476 | |
Anadolu Efes Biracilik Ve Malt Sanayii AS | | | 228,593 | | | | 3,221 | |
Arcelik AS | | | 1,109,800 | | | | 4,866 | |
Aygaz AS | | | 118,530 | | | | 548 | |
Cimsa Cimento Sanayi VE Tica | | | 229,210 | | | | 1,026 | |
Dogus Otomotiv Servis ve Ticaret AS | | | 173,603 | | | | 444 | |
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS | | | 1,608,930 | | | | 1,970 | |
Eregli Demir ve Celik Fabrikalari TAS | | | 551,970 | | | | 764 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Eregli Demir ve Celik Fabrikalari TAS (Æ) | | | 241,326 | | | | 334 | |
Ipek Dogal Enerji Kaynaklari Ve Uretim AS (Æ) | | | 1,148,590 | | | | 2,231 | |
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D (Æ) | | | 1,001,465 | | | | 547 | |
Koza Altin Isletmeleri AS | | | 290,041 | | | | 6,275 | |
Koza Anadolu Metal Madencilik Isletmeleri AS (Æ) | | | 452,356 | | | | 884 | |
Migros Ticaret AS (Æ) | | | 375,826 | | | | 3,713 | |
Selcuk Ecza Deposu Ticaret ve Sanayi A.S. | | | 535,035 | | | | 503 | |
Tofas Turk Otomobil Fabrikasi AS | | | 182,100 | | | | 807 | |
Turk Hava Yollari (Æ) | | | 1,563,001 | | | | 2,394 | |
Turkcell Iletisim Hizmetleri AS - ADR (Æ) | | | 113,400 | | | | 1,402 | |
Turkiye Garanti Bankasi AS | | | 1,165,972 | | | | 4,289 | |
Turkiye Halk Bankasi AS | | | 772,373 | | | | 5,409 | |
Turkiye Is Bankasi Class C | | | 391,963 | | | | 897 | |
Turkiye Sise ve Cam Fabrikalari AS | | | 2,994,676 | | | | 5,115 | |
Turkiye Vakiflar Bankasi Tao Class D | | | 1,541,173 | | | | 2,764 | |
Vestel Elektronik Sanayi ve Ticaret AS (Æ) | | | 770,946 | | | | 952 | |
Yapi ve Kredi Bankasi AS (Æ) | | | 1,050,923 | | | | 1,945 | |
| | | | | | | | |
| | | | | | | 53,776 | |
| | | | | | | | |
| | |
| United Kingdom - 3.3% | | | | | | | | |
Anglo American PLC (Ñ) | | | 399,307 | | | | 15,411 | |
Anglo American PLC - ADR (Ñ) | | | 75,700 | | | | 1,459 | |
Genesis Indian Investment Co., Ltd. | | | 298,100 | | | | 20,530 | |
Hikma Pharmaceuticals PLC | | | 199,882 | | | | 2,037 | |
New World Resources PLC Class A (Ñ) | | | 5,321 | | | | 36 | |
SABMiller PLC - ADR | | | 336,712 | | | | 14,092 | |
Tullow Oil PLC | | | 394,077 | | | | 9,811 | |
| | | | | | | | |
| | | | | | | 63,376 | |
| | | | | | | | |
| | |
| United States - 0.9% | | | | | | | | |
Avon Products, Inc. | | | 410,000 | | | | 8,856 | |
MercadoLibre, Inc. (Ñ) | | | 15,900 | | | | 1,538 | |
Sohu.com, Inc. (Æ)(Ñ) | | | 82,807 | | | | 4,270 | |
X5 Retail Group NV - GDR (Æ) | | | 86,057 | | | | 2,176 | |
| | | | | | | | |
| | | | | | | 16,840 | |
| | | | | | | | |
| | |
| Zimbabwe - 0.0% | | | | | | | | |
Delta Corp., Ltd. | | | 1,117,659 | | | | 760 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $1,455,380) | | | | | | | 1,731,007 | |
| | | | | | | | |
| | |
| Preferred Stocks - 2.8% | | | | | | | | |
| Brazil - 1.9% | | | | | | | | |
AES Tiete SA | | | 151,700 | | | | 2,125 | |
Alpargatas SA (Æ) | | | 118,360 | | | | 963 | |
Banco Bradesco SA | | | 75,500 | | | | 1,213 | |
Banco do Estado do Rio Grande do Sul | | | 172,500 | | | | 1,495 | |
Braskem SA | | | 110,400 | | | | 776 | |
Centrais Eletricas Brasileiras SA (Æ) | | | 251,900 | | | | 3,028 | |
Cia de Bebidas das Americas | | | 243,400 | | | | 10,252 | |
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA | | | 48,000 | | | | 734 | |
Investimentos Itau SA | | | 579,040 | | | | 2,752 | |
| | |
| Russell Emerging Markets Fund | | 153 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Itau Unibanco Holding SA | | | 143,300 | | | | 2,255 | |
Klabin SA | | | 775,900 | | | | 3,721 | |
Marcopolo SA (Æ) | | | 313,200 | | | | 1,684 | |
Oi SA | | | 643,898 | | | | 3,881 | |
Telefonica Brasil SA | | | 110 | | | | 3 | |
Vale SA Class Preference | | | 96,700 | | | | 2,103 | |
| | | | | | | | |
| | | | | | | 36,985 | |
| | | | | | | | |
| | |
| Chile - 0.1% | | | | | | | | |
Embotelladora Andina SA | | | 140,785 | | | | 746 | |
Embotelladora Andina SA Class A | | | 13,200 | | | | 60 | |
| | | | | | | | |
| | | | | | | 806 | |
| | | | | | | | |
| | |
| Colombia - 0.0% | | | | | | | | |
BanColombia SA | | | 7,200 | | | | 122 | |
| | | | | | | | |
| | |
| Russia - 0.2% | | | | | | | | |
AK Transneft OAO | | | 1,736 | | | | 3,238 | |
| | | | | | | | |
| | |
| South Korea - 0.6% | | | | | | | | |
Hyundai Motor Co. | | | 23,736 | | | | 1,644 | |
LG Electronics, Inc. | | | 39,920 | | | | 717 | |
Samsung Electronics Co., Ltd. | | | 13,661 | | | | 9,779 | |
| | | | | | | | |
| | | | | | | 12,140 | |
| | | | | | | | |
| | |
Total Preferred Stocks
(cost $39,244) | | | | | | | 53,291 | |
| | | | | | | | |
| |
| Warrants & Rights - 0.2% | | | | | |
| Brazil - 0.0% | | | | | | | | |
Cia de Bebidas das Americas (Æ) 2012 Rights | | | 655 | | | | 5 | |
Itausa - Investimentos Itau SA (Æ) 2012 Rights | | | 7,026 | | | | 2 | |
| | | | | | | | |
| | | | | | | 7 | |
| | | | | | | | |
| | |
| Germany - 0.1% | | | | | | | | |
Commercial Bank of Qatar QSC (The) (Æ) 2017 Warrants | | | 128,068 | | | | 2,532 | |
| | | | | | | | |
| | |
| United Kingdom - 0.1% | | | | | | | | |
Deutsche Bank AG (Æ)
2012 Warrants | | | 37,562 | | | | 669 | |
| | | | | | | | |
| | |
Total Warrants & Rights
(cost $3,056) | | | | | | | 3,208 | |
| | | | | | | | |
| |
| Certificates of Participation - 0.5% | | | | | |
| United Kingdom - 0.5% | | | | | | | | |
Credit Suisse International
Participation Notes
Note due 03/27/13 | | | 773 | | | | 1,170 | |
A portion of the portfolio has been fair valued as of period end.
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
HSBC Bank PLC
Series 0002
Note due 11/24/14 | | | 5,496 | | | | 978 | |
Series 0005 Note due 09/23/13 | | | 6,544 | | | | 2,394 | |
Series 0006 Note due 02/23/15 | | | 7,840 | | | | 3,143 | |
Jarir Marketing, Co.
Note due 06/04/12 | | | 4,650 | | | | 1,978 | |
| | | | | | | | |
| | | | | | | 9,663 | |
| | | | | | | | |
| | |
| United States - 0.0% | | | | | | | | |
Citigroup Global Markets Holdings, Inc. Series 2
Note due 10/28/13 | | | 317 | | | | 511 | |
| | | | | | | | |
| |
Total Certificates of Participation
(cost $12,151) | | | | 10,174 | |
| | | | | | | | |
| |
| Short-Term Investments - 4.6% | | | | | |
| United States - 4.6% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 87,571,155 | (¥) | | | 87,571 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $87,571) | | | | 87,571 | |
| | | | | | | | |
| | |
| Other Securities - 9.2% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 1,523,655 | (¥) | | | 1,552 | |
Russell U.S. Cash Collateral Fund (×) | | | 175,145,105 | (¥) | | | 175,145 | |
| | | | | | | | |
| |
Total Other Securities
(cost $176,669) | | | | 176,697 | |
| | | | | | | | |
| |
Total Investments - 107.9%
(identified cost $1,774,071) | | | | 2,061,948 | |
| |
Other Assets and Liabilities,
Net - (7.9%) | | | | (150,539 | ) |
| | | | | | | | |
| |
| Net Assets - 100.0% | | | | 1,911,409 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 154 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | |
FTSE JSE Top 40 Index Futures (South Africa) | | | 213 | | | ZAR | | | 65,133 | | | | 06/12 | | | | 99 | |
Hang Seng China ENT Index Futures (Hong Kong) | | | 157 | | | HKD | | | 86,444 | | | | 05/12 | | | | 224 | |
Hang Seng Index Futures (Hong Kong) | | | 82 | | | HKD | | | 85,854 | | | | 05/12 | | | | 221 | |
Kospi 200 Index Futures (South Korea) | | | 138 | | | KRW | | | 18,291,900 | | | | 06/12 | | | | (19 | ) |
Mexico Bolsa Index Futures (Mexico) | | | 170 | | | MXN | | | 67,203 | | | | 06/12 | | | | 228 | |
MSCI Taiwan Index Futures | | | 510 | | | USD | | | 13,643 | | | | 05/12 | | | | (135 | ) |
SGX CNX Nifty Index Futures (India) | | | 805 | | | USD | | | 8,479 | | | | 05/12 | | | | 42 | |
TurkDEX ISE-30 Index Futures (Turkey) | | | 520 | | | TRY | | | 3,705 | | | | 06/12 | | | | (31 | ) |
| | | | | | | | | | | | | | | | | | |
| | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | 629 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 155 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Banco Citibank SA | | USD | | | 10 | | | BRL | | 19 | | | 05/02/12 | | | | — | |
Banco Citibank SA | | USD | | | 7 | | | BRL | | 13 | | | 05/03/12 | | | | — | |
Banco Citibank SA | | USD | | | 70 | | | BRL | | 132 | | | 05/03/12 | | | | (1 | ) |
Banco Citibank SA | | BRL | | | 13 | | | USD | | 7 | | | 05/02/12 | | | | — | |
Banco Citibank SA | | BRL | | | 30 | | | USD | | 16 | | | 05/03/12 | | | | — | |
Bank of America | | USD | | | 1,671 | | | KRW | | 1,891,250 | | | 06/20/12 | | | | (3 | ) |
Bank of Montreal | | USD | | | 2,721 | | | HKD | | 21,117 | | | 06/20/12 | | | | 1 | |
Barclays Bank PLC | | USD | | | 765 | | | TRY | | 1,400 | | | 06/20/12 | | | | 24 | |
Brown Brothers Harriman & Co. | | USD | | | 3,760 | | | BRL | | 7,113 | | | 05/03/12 | | | | (28 | ) |
Brown Brothers Harriman & Co. | | USD | | | 3,824 | | | BRL | | 7,013 | | | 05/03/12 | | | | (145 | ) |
Brown Brothers Harriman & Co. | | USD | | | 3,746 | | | BRL | | 7,113 | | | 06/04/12 | | | | (40 | ) |
Brown Brothers Harriman & Co. | | USD | | | 326 | | | MXN | | 4,298 | | | 05/02/12 | | | | 3 | |
Brown Brothers Harriman & Co. | | BRL | | | 7,013 | | | USD | | 3,707 | | | 05/03/12 | | | | 28 | |
Brown Brothers Harriman & Co. | | BRL | | | 7,113 | | | USD | | 3,769 | | | 05/03/12 | | | | 38 | |
Citibank | | USD | | | 2,004 | | | INR | | 102,000 | | | 06/20/12 | | | | (89 | ) |
Citibank | | USD | | | 1,671 | | | KRW | | 1,891,250 | | | 06/20/12 | | | | (3 | ) |
Citibank | | ZAR | | | 2,156 | | | USD | | 277 | | | 05/04/12 | | | | — | |
Commonwealth Bank of Australia | | USD | | | 2,722 | | | HKD | | 21,117 | | | 06/20/12 | | | | 1 | |
Credit Suisse First Boston | | USD | | | 1,929 | | | ZAR | | 14,738 | | | 06/20/12 | | | | (47 | ) |
Deutsche Bank AG | | USD | | | 66 | | | HKD | | 511 | | | 05/02/12 | | | | — | |
Deutsche Bank AG | | USD | | | 74 | | | HKD | | 575 | | | 05/04/12 | | | | — | |
Deutsche Bank AG | | USD | | | 2,721 | | | HKD | | 21,117 | | | 06/20/12 | | | | 1 | |
Deutsche Bank AG | | USD | | | 819 | | | TRY | | 1,500 | | | 06/20/12 | | | | 26 | |
Deutsche Bank AG | | CZK | | | 1,059 | | | USD | | 56 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | CZK | | | 385 | | | USD | | 20 | | | 05/04/12 | | | | — | |
Deutsche Bank AG | | MXN | | | 707 | | | USD | | 54 | | | 05/02/12 | | | | — | |
Deutsche Bank AG | | MXN | | | 150 | | | USD | | 12 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | PLN | | | 39 | | | USD | | 12 | | | 05/02/12 | | | | — | |
Deutsche Bank AG | | PLN | | | 16 | | | USD | | 5 | | | 05/04/12 | | | | — | |
Deutsche Bank AG | | SGD | | | 10 | | | USD | | 8 | | | 05/02/12 | | | | — | |
Deutsche Bank AG | | SGD | | | 20 | | | USD | | 16 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | SGD | | | 12 | | | USD | | 10 | | | 05/04/12 | | | | — | |
Deutsche Bank AG | | TRY | | | 25 | | | USD | | 14 | | | 05/02/12 | | | | — | |
Deutsche Bank AG | | TRY | | | 32 | | | USD | | 18 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | ZAR | | | 3,309 | | | USD | | 423 | | | 05/03/12 | | | | (3 | ) |
Deutsche Bank AG | | ZAR | | | 5,723 | | | USD | | 736 | | | 05/04/12 | | | | — | |
Deutsche Bank AG | | ZAR | | | 2,088 | | | USD | | 268 | | | 05/07/12 | | | | (1 | ) |
Deutsche Bank AG | | ZAR | | | 895 | | | USD | | 115 | | | 05/08/12 | | | | — | |
HSBC Bank PLC | | USD | | | 3,820 | | | BRL | | 7,013 | | | 05/03/12 | | | | (141 | ) |
HSBC Bank PLC | | USD | | | 2,721 | | | HKD | | 21,117 | | | 06/20/12 | | | | 1 | |
HSBC Bank PLC | | USD | | | 1,999 | | | INR | | 102,000 | | | 06/20/12 | | | | (84 | ) |
HSBC Bank PLC | | USD | | | 1,672 | | | KRW | | 1,891,250 | | | 06/20/12 | | | | (4 | ) |
HSBC Bank PLC | | USD | | | 787 | | | MXN | | 10,025 | | | 06/20/12 | | | | (21 | ) |
HSBC Bank PLC | | USD | | | 1,928 | | | ZAR | | 14,738 | | | 06/20/12 | | | | (45 | ) |
HSBC Bank PLC | | BRL | | | 7,013 | | | USD | | 3,707 | | | 05/03/12 | | | | 28 | |
JPMorgan Chase Bank | | USD | | | 1,673 | | | KRW | | 1,891,250 | | | 06/20/12 | | | | (5 | ) |
Mellon Bank | | USD | | | 2,721 | | | HKD | | 21,117 | | | 06/20/12 | | | | 1 | |
Royal Bank of Canada | | USD | | | 3,760 | | | BRL | | 7,113 | �� | | 05/03/12 | | | | (28 | ) |
Royal Bank of Canada | | USD | | | 3,821 | | | BRL | | 7,013 | | | 05/03/12 | | | | (142 | ) |
Royal Bank of Canada | | USD | | | 3,745 | | | BRL | | 7,113 | | | 06/04/12 | | | | (39 | ) |
Royal Bank of Canada | | USD | | | 786 | | | MXN | | 10,025 | | | 06/20/12 | | | | (20 | ) |
Royal Bank of Canada | | USD | | | 1,927 | | | ZAR | | 14,738 | | | 06/20/12 | | | | (45 | ) |
Royal Bank of Canada | | BRL | | | 7,013 | | | USD | | 3,707 | | | 05/03/12 | | | | 28 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 156 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
Royal Bank of Canada | | BRL | | | 7,113 | | | USD | | 3,768 | | | 05/03/12 | | | | 37 | |
Royal Bank of Scotland PLC | | USD | | | 3,760 | | | BRL | | 7,113 | | | 05/03/12 | | | | (28 | ) |
Royal Bank of Scotland PLC | | USD | | | 3,823 | | | BRL | | 7,013 | | | 05/03/12 | | | | (144 | ) |
Royal Bank of Scotland PLC | | USD | | | 3,746 | | | BRL | | 7,113 | | | 06/04/12 | | | | (40 | ) |
Royal Bank of Scotland PLC | | USD | | | 3,865 | | | HKD | | 30,000 | | | 06/20/12 | | | | 2 | |
Royal Bank of Scotland PLC | | USD | | | 2,007 | | | INR | | 102,000 | | | 06/20/12 | | | | (92 | ) |
Royal Bank of Scotland PLC | | USD | | | 786 | | | MXN | | 10,025 | | | 06/20/12 | | | | (20 | ) |
Royal Bank of Scotland PLC | | BRL | | | 7,013 | | | USD | | 3,707 | | | 05/03/12 | | | | 28 | |
Royal Bank of Scotland PLC | | BRL | | | 7,113 | | | USD | | 3,769 | | | 05/03/12 | | | | 38 | |
State Street Bank & Trust Co. | | USD | | | 18 | | | BRL | | 33 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 82 | | | BRL | | 154 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 98 | | | BRL | | 184 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 110 | | | BRL | | 206 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 141 | | | BRL | | 265 | | | 05/02/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | USD | | | 181 | | | BRL | | 341 | | | 05/02/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | USD | | | 52 | | | BRL | | 98 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 83 | | | BRL | | 158 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 99 | | | BRL | | 188 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 107 | | | BRL | | 203 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 111 | | | BRL | | 210 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 218 | | | BRL | | 400 | | | 05/03/12 | | | | (8 | ) |
State Street Bank & Trust Co. | | USD | | | 369 | | | BRL | | 701 | | | 05/03/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 3,760 | | | BRL | | 7,113 | | | 05/03/12 | | | | (28 | ) |
State Street Bank & Trust Co. | | USD | | | 3,745 | | | BRL | | 7,113 | | | 06/04/12 | | | | (39 | ) |
State Street Bank & Trust Co. | | USD | | | 36 | | | GBP | | 22 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 14 | | | HKD | | 112 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 35 | | | HKD | | 269 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 581 | | | HKD | | 4,511 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 10 | | | HKD | | 75 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 12 | | | HKD | | 96 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 16 | | | HKD | | 126 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 30 | | | HKD | | 233 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 703 | | | HKD | | 5,455 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 84 | | | IDR | | 773,362 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 33 | | | IDR | | 307,478 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 2,005 | | | INR | | 102,000 | | | 06/20/12 | | | | (90 | ) |
State Street Bank & Trust Co. | | USD | | | 87 | | | MXN | | 1,123 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 35 | | | MYR | | 105 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 12 | | | MYR | | 36 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 66 | | | THB | | 2,039 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 98 | | | THB | | 3,016 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 66 | | | THB | | 2,038 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 100 | | | THB | | 3,083 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 694 | | | TRY | | 1,270 | | | 06/20/12 | | | | 22 | |
State Street Bank & Trust Co. | | USD | | | 38 | | | ZAR | | 295 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 161 | | | ZAR | | 1,251 | | | 05/07/12 | | | | — | |
State Street Bank & Trust Co. | | BRL | | | 60 | | | USD | | 32 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | BRL | | | 62 | | | USD | | 33 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | BRL | | | 149 | | | USD | | 79 | | | 05/02/12 | | | | 1 | |
State Street Bank & Trust Co. | | BRL | | | 182 | | | USD | | 97 | | | 05/02/12 | | | | 1 | |
State Street Bank & Trust Co. | | BRL | | | 193 | | | USD | | 103 | | | 05/02/12 | | | | 1 | |
State Street Bank & Trust Co. | | BRL | | | 107 | | | USD | | 56 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | BRL | | | 116 | | | USD | | 61 | | | 05/03/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 157 |
Russell Investment Company
Russell Emerging Markets Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
State Street Bank & Trust Co. | | BRL | | | 400 | | | USD | | 211 | | | 05/03/12 | | | | 2 | |
State Street Bank & Trust Co. | | BRL | | | 7,113 | | | USD | | 3,768 | | | 05/03/12 | | | | 37 | |
State Street Bank & Trust Co. | | HKD | | | 3,534 | | | USD | | 456 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | IDR | | | 190,036 | | | USD | | 21 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | IDR | | | 75,408 | | | USD | | 8 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | IDR | | | 135,454 | | | USD | | 15 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | MXN | | | 4,861 | | | USD | | 373 | | | 05/03/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | MYR | | | 63 | | | USD | | 21 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | PHP | | | 938 | | | USD | | 22 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | THB | | | 434 | | | USD | | 14 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | THB | | | 643 | | | USD | | 21 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | THB | | | 4,541 | | | USD | | 148 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | ZAR | | | 220 | | | USD | | 28 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | ZAR | | | 296 | | | USD | | 38 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | ZAR | | | 616 | | | USD | | 79 | | | 05/03/12 | | | | (1 | ) |
UBS AG | | USD | | | 75 | | | HKD | | 580 | | | 05/03/12 | | | | — | |
UBS AG | | USD | | | 787 | | | MXN | | 10,025 | | | 06/20/12 | | | | (20 | ) |
UBS AG | | USD | | | 1,929 | | | ZAR | | 14,738 | | | 06/20/12 | | | | (46 | ) |
UBS AG | | CZK | | | 2,102 | | | USD | | 112 | | | 05/02/12 | | | | — | |
UBS AG | | ZAR | | | 5,869 | | | USD | | 746 | | | 05/02/12 | | | | (9 | ) |
Westpac Banking Corp. | | USD | | | 2,721 | | | HKD | | 21,117 | | | 06/20/12 | | | | 1 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | (1,158 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Index Swaps Contracts | | | | | | | | | | | | | | | |
Fund Receives
Underlying Security | | Counterparty | | Notional
Amount
$ | | Terms | | Termination
Date | | | Market
Value
$ | |
Bovespa Index Futures | | Goldman Sachs | | | BRL | | | 26,961 | | Total Return of Underlying Security at Termination | | | 06/13/12 | | | | (120 | ) |
| | | | | | | | | | | | | | | | | | |
| | | |
Total Market Value of Open Index Swap Contracts Premiums Paid (Received) - $—(å) | | | | | | | | | (120 | ) |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 158 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Argentina | | $ | 800 | | | $ | — | | | $ | — | | | $ | 800 | | | | — | * |
Austria | | | 1,215 | | | | — | | | | — | | | | 1,215 | | | | 0.1 | |
Bermuda | | | 30,475 | | | | — | | | | — | | | | 30,475 | | | | 1.6 | |
Brazil | | | 217,557 | | | | — | | | | — | | | | 217,557 | | | | 11.4 | |
Canada | | | 8,215 | | | | — | | | | — | | | | 8,215 | | | | 0.4 | |
Cayman Islands | | | 89,085 | | | | — | | | | 396 | | | | 89,481 | | | | 4.7 | |
Chile | | | 12,203 | | | | — | | | | — | | | | 12,203 | | | | 0.6 | |
China | | | 87,226 | | | | — | | | | — | | | | 87,226 | | | | 4.6 | |
Colombia | | | 12,437 | | | | — | | | | — | | | | 12,437 | | | | 0.6 | |
Cyprus | | | 1,825 | | | | — | | | | 488 | | | | 2,313 | | | | 0.1 | |
Czech Republic | | | 1,223 | | | | — | | | | — | | | | 1,223 | | | | 0.1 | |
Egypt | | | 7,247 | | | | — | | | | — | | | | 7,247 | | | | 0.4 | |
Greece | | | 1,860 | | | | — | | | | — | | | | 1,860 | | | | 0.1 | |
Hong Kong | | | 82,453 | | | | — | | | | — | | | | 82,453 | | | | 4.3 | |
Hungary | | | 11,124 | | | | — | | | | — | | | | 11,124 | | | | 0.6 | |
India | | | 104,435 | | | | — | | | | — | | | | 104,435 | | | | 5.5 | |
Indonesia | | | 73,252 | | | | — | | | | — | | | | 73,252 | | | | 3.8 | |
Ireland | | | 2,532 | | | | — | | | | — | | | | 2,532 | | | | 0.1 | |
Israel | | | 1,484 | | | | — | | | | — | | | | 1,484 | | | | 0.1 | |
Jersey | | | 1,191 | | | | — | | | | — | | | | 1,191 | | | | 0.1 | |
Kazakhstan | | | 1,995 | | | | — | | | | — | | | | 1,995 | | | | 0.1 | |
Luxembourg | | | 34,905 | | | | — | | | | — | | | | 34,905 | | | | 1.8 | |
Malaysia | | | 28,923 | | | | — | | | | — | | | | 28,923 | | | | 1.5 | |
Mexico | | | 80,122 | | | | — | | | | — | | | | 80,122 | | | | 4.2 | |
Netherlands | | | 2,004 | | | | — | | | | — | | | | 2,004 | | | | 0.1 | |
Nigeria | | | 7,068 | | | | — | | | | — | | | | 7,068 | | | | 0.4 | |
Panama | | | 3,009 | | | | — | | | | — | | | | 3,009 | | | | 0.2 | |
Peru | | | 2,827 | | | | — | | | | — | | | | 2,827 | | | | 0.1 | |
Philippines | | | 22,470 | | | | — | | | | — | | | | 22,470 | | | | 1.2 | |
Poland | | | 13,875 | | | | — | | | | — | | | | 13,875 | | | | 0.7 | |
Russia | | | 121,768 | | | | — | | | | 536 | | | | 122,304 | | | | 6.4 | |
South Africa | | | 104,779 | | | | — | | | | — | | | | 104,779 | | | | 5.5 | |
South Korea | | | 249,231 | | | | — | | | | 275 | | | | 249,506 | | | | 13.1 | |
Taiwan | | | 103,636 | | | | — | | | | — | | | | 103,636 | | | | 5.4 | |
Thailand | | | 70,109 | | | | — | | | | — | | | | 70,109 | | | | 3.7 | |
Turkey | | | 53,776 | | | | — | | | | — | | | | 53,776 | | | | 2.8 | |
United Kingdom | | | 42,846 | | | | — | | | | 20,530 | | | | 63,376 | | | | 3.3 | |
United States | | | 16,840 | | | | — | | | | — | | | | 16,840 | | | | 0.9 | |
Zimbabwe | | | 760 | | | | — | | | | — | | | | 760 | | | | — | * |
Preferred Stocks | | | 53,291 | | | | — | | | | — | | | | 53,291 | | | | 2.8 | |
Warrants & Rights | | | — | | | | 3,208 | | | | — | | | | 3,208 | | | | 0.2 | |
Certificates of Participation | | | — | | | | 9,004 | | | | 1,170 | | | | 10,174 | | | | 0.5 | |
Short-Term Investments | | | — | | | | 87,571 | | | | — | | | | 87,571 | | | | 4.6 | |
Other Securities | | | — | | | | 176,697 | | | | — | | | | 176,697 | | | | 9.2 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 1,762,073 | | | | 276,480 | | | | 23,395 | | | | 2,061,948 | | | | 107.9 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (7.9 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 159 |
Russell Investment Company
Russell Emerging Markets Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | $ | 629 | | | $ | — | | | $ | — | | | $ | 629 | | | $ | — | * |
Foreign Currency Exchange Contracts | | | (6 | ) | | | (1,152 | ) | | | — | | | | (1,158 | ) | | | (0.1 | ) |
Index Swaps Contracts | | | — | | | | (120 | ) | | | — | | | | (120 | ) | | | (— | )* |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 623 | | | $ | (1,272 | ) | | $ | — | | | $ | (649 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
The significant inputs used in determining the fair values of Level 3 securities were as follows:
| | | | | | | | | | |
| Category | | Inputs | | Market Value
$ | | | % of Level 3
Instruments’
Total Market Value | |
| | | | | | | | | | |
| | | | | | | | | | |
Cayan Island | | Investment Manager Fair Value Recommendation | | $ | 396 | | | | 1.6 | |
Cyprus | | Priced by Proxy/Reference Security | | | 488 | | | | 2.1 | |
Russia | | Priced by Proxy/Reference Security | | | 536 | | | | 2.3 | |
South Korea | | Halted by Exchange | | | 275 | | | | 1.2 | |
United Kingdom | | Investment Manager Fair Value Recommendation | | | 20,530 | | | | 87.8 | |
Certificates of Participation | | Investment Manager Fair Value Recommendation | | | 1,170 | | | | 5.0 | |
| | | | | | | | | | |
| | | | $ | 23,395 | | | | 100.0 | |
| | | | | | | | | | |
A reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining a value for the period ended April 30, 2012 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Category and
Subcategory | | Beginning
Balance
11/1/2011 | | | Gross
Purchases | | | Gross
Sales | | | Accrued
Discounts/
(Premiums) | | | Realized
Gain
(Loss) | | | Net
Transfers
into
Level 3 | | | Net
Transfers
out of
Level 3 | | | Net change in
Unrealized
Appreciation/
(Depreciation) | | | Ending
Balance at
4/30/2012 | | | Net change in
Unrealized
Appreciation/
(Depreciation) on
Investments held
as of 04/30/2012 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cayman Islands | | $ | 785 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (389 | ) | | $ | 396 | | | $ | (388 | ) |
Cyprus | | | 525 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (37 | ) | | | 488 | | | | (36 | ) |
Russia | | | 498 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 38 | | | | 536 | | | | 37 | |
South Korea | | | 263 | | | | 1,228 | | | | 786 | | | | — | | | | (64 | ) | | | — | | | | 214 | | | | (152 | ) | | | 275 | | | | (123 | ) |
United Kingdom | | | 25,832 | | | | — | | | | 4,890 | | | | — | | | | 640 | | | | — | | | | — | | | | (1,052 | ) | | | 20,530 | | | | (1,052 | ) |
Certificates of Participation | | | — | | | | 1,165 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5 | | | | 1,170 | | | | 5 | |
Short-Term Investments | | | 11 | | | | 1,480 | | | | 2,645 | | | | — | | | | (315 | ) | | | — | | | | — | | | | 1,469 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Common Stock | | | 27,914 | | | | 3,873 | | | | 8,321 | | | | — | | | | 261 | | | | — | | | | 214 | | | | (118 | ) | | | 23,395 | | | | (1,557 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 160 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Fair Value of Derivative Instruments — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 350 | |
Daily variation margin on futures contracts* | | | 814 | | | | — | |
| | | | | | | | |
Total | | $ | 814 | | | $ | 350 | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 1,508 | |
Daily variation margin on futures contracts* | | | 185 | | | | — | |
Index swap contracts, at market value | | | 120 | | | | — | |
| | | | | | | | |
Total | | $ | 305 | | | $ | 1,508 | |
| | | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | |
Futures contracts | | $ | 6,296 | | | $ | — | |
Index swap contracts | | | 2,439 | | | | — | |
Foreign currency-related transactions | | | — | | | | (343 | ) |
| | | | | | | | |
Total | | $ | 8,735 | | | $ | (343 | ) |
| | | | | | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | |
Futures contracts | | $ | (4,477 | ) | | $ | — | |
Index swap contracts | | | (2,524 | ) | | | — | |
Foreign currency-related transactions | | | — | | | | (1,553 | ) |
| | | | | | | | |
Total | | $ | (7,001 | ) | | $ | (1,553 | ) |
| | | | | | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and 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 Emerging Markets Fund | | 161 |
Russell Investment Company
Russell Emerging Markets Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,774,071 | |
Investments, at market**, *** | | | 2,061,948 | |
Cash (restricted) | | | 12,300 | |
Foreign currency holdings* | | | 6,045 | |
Unrealized appreciation on foreign currency exchange contracts | | | 350 | |
Receivables: | | | | |
Dividends and interest | | | 6,145 | |
Dividends from affiliated Russell money market funds | | | 11 | |
Investments sold | | | 16,992 | |
Fund shares sold | | | 3,124 | |
Foreign taxes recoverable | | | 68 | |
Daily variation margin on futures contracts | | | 6,164 | |
Other receivable | | | 7 | |
Prepaid expenses | | | 3 | |
| | | | |
Total assets | | | 2,113,157 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 16,584 | |
Fund shares redeemed | | | 1,649 | |
Accrued fees to affiliates | | | 2,138 | |
Other accrued expenses | | | 543 | |
Deferred tax liability | | | 2,537 | |
Unrealized depreciation on foreign currency exchange contracts | | | 1,508 | |
Index swap contracts, at market value | | | 120 | |
Payable upon return of securities loaned | | | 176,669 | |
| | | | |
Total liabilities | | | 201,748 | |
| | | | |
| | | | |
Net Assets | | $ | 1,911,409 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 162 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (39,283 | ) |
Accumulated net realized gain (loss) | | | (27,531 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 285,340 | |
Futures contracts | | | 629 | |
Index swap contracts | | | (120 | ) |
Foreign currency-related transactions | | | (1,264 | ) |
Other investments | | | (28 | ) |
Shares of beneficial interest | | | 1,048 | |
Additional paid-in capital | | | 1,692,618 | |
| | | | |
Net Assets | | $ | 1,911,409 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 18.14 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 19.25 | |
Class A — Net assets | | $ | 22,144,726 | |
Class A — Shares outstanding ($.01 par value) | | | 1,220,436 | |
Net asset value per share: Class C(a) | | $ | 17.12 | |
Class C — Net assets | | $ | 35,277,136 | |
Class C — Shares outstanding ($.01 par value) | | | 2,061,136 | |
Net asset value per share: Class E(a) | | $ | 18.19 | |
Class E — Net assets | | $ | 46,750,289 | |
Class E — Shares outstanding ($.01 par value) | | | 2,569,932 | |
Net asset value per share: Class S(a) | | $ | 18.25 | |
Class S — Net assets | | $ | 1,327,318,910 | |
Class S — Shares outstanding ($.01 par value) | | | 72,728,503 | |
Net asset value per share: Class Y(a) | | $ | 18.28 | |
Class Y — Net assets | | $ | 479,917,693 | |
Class Y — Shares outstanding ($.01 par value) | | | 26,258,282 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 6,083 | |
** Securities on loan included in investments | | $ | 188,630 | |
*** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 264,268 | |
(a) 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.
| | |
| Russell Emerging Markets Fund | | 163 |
Russell Investment Company
Russell Emerging Markets Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 18,387 | |
Dividends from affiliated Russell money market funds | | | 60 | |
Interest | | | 3,195 | |
Securities lending income | | | 649 | |
Less foreign taxes withheld | | | (1,844 | ) |
| | | | |
Total investment income | | | 20,447 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 10,418 | |
Administrative fees | | | 453 | |
Custodian fees | | | 754 | |
Distribution fees - Class A | | | 27 | |
Distribution fees - Class C | | | 132 | |
Transfer agent fees - Class A | | | 19 | |
Transfer agent fees - Class C | | | 32 | |
Transfer agent fees - Class E | | | 41 | |
Transfer agent fees - Class S | | | 1,116 | |
Transfer agent fees - Class Y | | | 10 | |
Professional fees | | | 204 | |
Registration fees | | | 92 | |
Shareholder servicing fees - Class C | | | 44 | |
Shareholder servicing fees - Class E | | | 57 | |
Trustees’ fees | | | 21 | |
Printing fees | | | 86 | |
Miscellaneous | | | 20 | |
| | | | |
Expenses before reductions | | | 13,526 | |
Expense reductions | | | — | * |
| | | | |
Net expenses | | | 13,526 | |
| | | | |
Net investment income (loss) | | | 6,921 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | (18,037 | ) |
Futures contracts | | | 6,296 | |
Index swap contracts | | | 2,439 | |
Foreign currency-related transactions | | | (234 | ) |
| | | | |
Net realized gain (loss) | | | (9,536 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 124,868 | |
Futures contracts | | | (4,477 | ) |
Index swap contracts | | | (2,525 | ) |
Foreign currency-related transactions | | | (1,898 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 115,968 | |
| | | | |
Net realized and unrealized gain (loss) | | | 106,432 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 113,353 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 164 | | | Russell Emerging Markets Fund |
Russell Investment Company
Russell Emerging Markets Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 6,921 | | | $ | 24,547 | |
Net realized gain (loss) | | | (9,536 | ) | | | 93,745 | |
Net change in unrealized appreciation (depreciation) | | | 115,968 | | | | (300,535 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 113,353 | | | | (182,243 | ) |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (259 | ) | | | (407 | ) |
Class C | | | (148 | ) | | | (578 | ) |
Class E | | | (550 | ) | | | (737 | ) |
Class S | | | (17,832 | ) | | | (22,318 | ) |
Class Y | | | (7,858 | ) | | | (11,005 | ) |
From net realized gain | | | | | | | | |
Class A | | | (828 | ) | | | — | |
Class C | | | (1,482 | ) | | | — | |
Class E | | | (1,741 | ) | | | — | |
Class S | | | (46,480 | ) | | | — | |
Class Y | | | (18,279 | ) | | | — | |
| | | | | | | | |
Net decrease in net assets from distributions | | | (95,457 | ) | | | (35,045 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 102,398 | | | | 327,590 | |
Fund Reimbursements | | | — | | | | 10 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 120,294 | | | | 110,312 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,791,115 | | | | 1,680,803 | |
| | | | | | | | |
End of period | | $ | 1,911,409 | | | $ | 1,791,115 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (39,283 | ) | | $ | (19,557 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Emerging Markets Fund | | 165 |
Russell Investment Company
Russell Emerging Markets Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net Investment
Income (Loss)(a)(d) | | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 18.06 | | | | .04 | | | | .96 | | | | 1.00 | | | | (.22 | ) | | | (.70 | ) |
October 31, 2011 | | | 20.37 | | | | .21 | | | | (2.14 | ) | | | (1.93 | ) | | | (.38 | ) | | | — | |
October 31, 2010 | | | 16.44 | | | | .08 | | | | 4.29 | | | | 4.37 | | | | (.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 | | | 20.50 | | | | .14 | | | | 10.21 | | | | 10.35 | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 16.99 | | | | (.02 | ) | | | .92 | | | | .90 | | | | (.07 | ) | | | (.70 | ) |
October 31, 2011 | | | 19.20 | | | | .05 | | | | (2.02 | ) | | | (1.97 | ) | | | (.24 | ) | | | — | |
October 31, 2010 | | | 15.53 | | | | (.05 | ) | | | 4.06 | | | | 4.01 | | | | (.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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 18.10 | | | | .04 | | | | .97 | | | | 1.01 | | | | (.22 | ) | | | (.70 | ) |
October 31, 2011 | | | 20.41 | | | | .22 | | | | (2.16 | ) | | | (1.94 | ) | | | (.37 | ) | | | — | |
October 31, 2010 | | | 16.47 | | | | .08 | | | | 4.30 | | | | 4.38 | | | | (.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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 18.19 | | | | .07 | | | | .96 | | | | 1.03 | | | | (.27 | ) | | | (.70 | ) |
October 31, 2011 | | | 20.50 | | | | .27 | | | | (2.17 | ) | | | (1.90 | ) | | | (.41 | ) | | | — | |
October 31, 2010 | | | 16.52 | | | | .12 | | | | 4.33 | | | | 4.45 | | | | (.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 | ) |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 18.23 | | | | .08 | | | | .97 | | | | 1.05 | | | | (.30 | ) | | | (.70 | ) |
October 31, 2011 | | | 20.54 | | | | .29 | | | | (2.16 | ) | | | (1.87 | ) | | | (.44 | ) | | | — | |
October 31, 2010 | | | 16.55 | | | | .15 | | | | 4.33 | | | | 4.48 | | | | (.49 | ) | | | — | |
October 31, 2009 | | | 10.62 | | | | .13 | | | | 6.30 | | | | 6.43 | | | | — | | | | (.50 | ) |
October 31, 2008(4) | | | 15.72 | | | | .01 | | | | (5.11 | ) | | | (5.10 | ) | | | — | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 166 | | | Russell Emerging Markets Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.92 | ) | | | 18.14 | | | | 6.21 | | | | 22,145 | | | | 1.76 | | | | 1.76 | | | | .49 | | | | 42 | |
| | (.38 | ) | | | 18.06 | | | | (9.67 | ) | | | 21,834 | | | | 1.78 | | | | 1.78 | | | | 1.06 | | | | 73 | |
| | (.44 | ) | | | 20.37 | | | | 27.09 | | | | 21,428 | | | | 1.78 | | | | 1.78 | | | | .47 | | | | 67 | |
| | (.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 | | | | 1.88 | | | | .86 | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.77 | ) | | | 17.12 | | | | 5.84 | | | | 35,277 | | | | 2.51 | | | | 2.51 | | | | (.28 | ) | | | 42 | |
| | (.24 | ) | | | 16.99 | | | | (10.37 | ) | | | 36,942 | | | | 2.53 | | | | 2.53 | | | | .25 | | | | 73 | |
| | (.34 | ) | | | 19.20 | | | | 26.15 | | | | 44,932 | | | | 2.53 | | | | 2.53 | | | | (.29 | ) | | | 67 | |
| | (.50 | ) | | | 15.53 | | | | 61.74 | | | | 34,286 | | | | 2.53 | | | | 2.53 | | | | (.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 | | | | 2.63 | | | | (.07 | ) | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.92 | ) | | | 18.19 | | | | 6.21 | | | | 46,750 | | | | 1.76 | | | | 1.76 | | | | .49 | | | | 42 | |
| | (.37 | ) | | | 18.10 | | | | (9.70 | ) | | | 45,591 | | | | 1.78 | | | | 1.78 | | | | 1.11 | | | | 73 | |
| | (.44 | ) | | | 20.41 | | | | 27.13 | | | | 39,733 | | | | 1.78 | | | | 1.78 | | | | .44 | | | | 67 | |
| | (.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 | | | | 1.88 | | | | .68 | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.97 | ) | | | 18.25 | | | | 6.31 | | | | 1,327,319 | | | | 1.51 | | | | 1.51 | | | | .76 | | | | 42 | |
| | (.41 | ) | | | 18.19 | | | | (9.45 | ) | | | 1,215,031 | | | | 1.53 | | | | 1.53 | | | | 1.34 | | | | 73 | |
| | (.47 | ) | | | 20.50 | | | | 27.41 | | | | 1,065,718 | | | | 1.53 | | | | 1.53 | | | | .70 | | | | 67 | |
| | (.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 | | | | 1.63 | | | | .94 | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.00 | ) | | | 18.28 | | | | 6.45 | | | | 479,918 | | | | 1.33 | | | | 1.33 | | | | .90 | | | | 42 | |
| | (.44 | ) | | | 18.23 | | | | (9.30 | ) | | | 471,717 | | | | 1.35 | | | | 1.35 | | | | 1.45 | | | | 73 | |
| | (.49 | ) | | | 20.54 | | | | 27.60 | | | | 508,992 | | | | 1.35 | | | | 1.35 | | | | .85 | | | | 67 | |
| | (.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 Emerging Markets Fund | | 167 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value April 30, 2012 | | $ | 1,141.06 | | | $ | 1,018.70 | |
Expenses Paid During Period* | | $ | 6.60 | | | $ | 6.22 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value April 30, 2012 | | $ | 1,137.11 | | | $ | 1,015.17 | |
Expenses Paid During Period* | | $ | 10.36 | | | $ | 9.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.95% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value April 30, 2012 | | $ | 1,141.33 | | | $ | 1,018.90 | |
Expenses Paid During Period* | | $ | 6.39 | | | $ | 6.02 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.20% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,142.50 | | | $ | 1,020.14 | |
Expenses Paid During Period* | | $ | 5.06 | | | $ | 4.77 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 168 | | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 92.7% | | | | | | | | |
| Consumer Discretionary - 15.4% | |
Amazon.com, Inc. (Æ) | | | 46,010 | | | | 10,670 | |
Apollo Group, Inc. Class A (Æ) | | | 2,500 | | | | 88 | |
AutoZone, Inc. (Æ) | | | 2,400 | | | | 951 | |
Bed Bath & Beyond, Inc. (Æ) | | | 2,200 | | | | 155 | |
Best Buy Co., Inc. | | | 26,500 | | | | 585 | |
Carnival Corp. | | | 9,200 | | | | 299 | |
CBS Corp. Class B | | | 50,200 | | | | 1,674 | |
Coach, Inc. | | | 29,400 | | | | 2,151 | |
Comcast Corp. Class A (Æ) | | | 180,487 | | | | 5,419 | |
DIRECTV, Inc. Class A (Æ) | | | 9,400 | | | | 463 | |
DR Horton, Inc. | | | 11,200 | | | | 183 | |
eBay, Inc. (Æ) | | | 79,750 | | | | 3,274 | |
Expedia, Inc. (Ñ) | | | 14,300 | | | | 610 | |
Family Dollar Stores, Inc. | | | 1,800 | | | | 122 | |
Ford Motor Co. | | | 137,377 | | | | 1,550 | |
GameStop Corp. Class A (Ñ) | | | 4,600 | | | | 105 | |
General Motors Co. (Æ) | | | 83,700 | | | | 1,925 | |
Home Depot, Inc. | | | 21,400 | | | | 1,108 | |
International Game Technology | | | 8,900 | | | | 139 | |
Johnson Controls, Inc. | | | 22,400 | | | | 716 | |
Kohl’s Corp. | | | 46,209 | | | | 2,316 | |
Las Vegas Sands Corp. | | | 46,300 | | | | 2,569 | |
Lennar Corp. Class A (Ñ) | | | 2,800 | | | | 78 | |
Lowe’s Cos., Inc. | | | 102,990 | | | | 3,241 | |
Lululemon Athletica, Inc. (Æ) | | | 3,000 | | | | 222 | |
Macy’s, Inc. | | | 12,500 | | | | 513 | |
Marriott International, Inc. Class A | | | 5,700 | | | | 223 | |
Marriott Vacations Worldwide Corp. (Æ) | | | 349 | | | | 10 | |
Mattel, Inc. | | | 3,900 | | | | 131 | |
McDonald’s Corp. | | | 5,700 | | | | 555 | |
Netflix, Inc. (Æ)(Ñ) | | | 15,000 | | | | 1,202 | |
Nike, Inc. Class B | | | 31,900 | | | | 3,569 | |
NVR, Inc. (Æ) | | | 200 | | | | 157 | |
priceline.com, Inc. (Æ) | | | 4,200 | | | | 3,195 | |
PulteGroup, Inc. (Æ) | | | 11,300 | | | | 111 | |
Royal Caribbean Cruises, Ltd. | | | 8,100 | | | | 222 | |
Starbucks Corp. | | | 79,380 | | | | 4,555 | |
Starwood Hotels & Resorts Worldwide, Inc. (ö) | | | 39,510 | | | | 2,339 | |
Target Corp. | | | 13,600 | | | | 788 | |
TE Connectivity, Ltd. | | | 11,500 | | | | 419 | |
Tiffany & Co. | | | 1,900 | | | | 130 | |
Time Warner, Inc. | | | 81,300 | | | | 3,045 | |
TJX Cos., Inc. | | | 23,100 | | | | 963 | |
TripAdvisor, Inc. (Æ)(Ñ) | | | 3,400 | | | | 127 | |
VF Corp. | | | 4,200 | | | | 639 | |
Viacom, Inc. Class B | | | 46,300 | | | | 2,148 | |
WABCO Holdings, Inc. (Æ) | | | 18,240 | | | | 1,150 | |
Wal-Mart Stores, Inc. | | | 16,000 | | | | 943 | |
Walt Disney Co. (The) | | | 7,900 | | | | 341 | |
Wyndham Worldwide Corp. | | | 67,641 | | | | 3,405 | |
Yum! Brands, Inc. | | | 64,850 | | | | 4,716 | |
| | | | | | | | |
| | | | | | | 76,209 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Consumer Staples - 5.8% | | | | | | | | |
Altria Group, Inc. | | | 6,800 | | | | 219 | |
Archer-Daniels-Midland Co. | | | 5,100 | | | | 157 | |
Cia de Bebidas das Americas - ADR | | | 53,960 | | | | 2,265 | |
Coca-Cola Co. (The) | | | 78,000 | | | | 5,953 | |
Coca-Cola Enterprises, Inc. | | | 4,600 | | | | 139 | |
Colgate-Palmolive Co. | | | 31,590 | | | | 3,125 | |
Constellation Brands, Inc. Class A (Æ) | | | 3,600 | | | | 78 | |
CVS Caremark Corp. | | | 122,872 | | | | 5,483 | |
Dr Pepper Snapple Group, Inc. | | | 9,700 | | | | 394 | |
General Mills, Inc. | | | 24,400 | | | | 949 | |
Kimberly-Clark Corp. | | | 3,500 | | | | 275 | |
Kraft Foods, Inc. Class A | | | 56,900 | | | | 2,269 | |
Kroger Co. (The) | | | 17,200 | | | | 400 | |
PepsiCo, Inc. | | | 11,000 | | | | 726 | |
Philip Morris International, Inc. | | | 30,300 | | | | 2,712 | |
Procter & Gamble Co. (The) | | | 49,600 | | | | 3,156 | |
Ralcorp Holdings, Inc. (Æ) | | | 2,900 | | | | 211 | |
Sysco Corp. | | | 7,000 | | | | 202 | |
| | | | | | | | |
| | | | | | | 28,713 | |
| | | | | | | | |
| | |
| Energy - 11.1% | | | | | | | | |
Anadarko Petroleum Corp. | | | 6,400 | | | | 469 | |
Apache Corp. | | | 50,383 | | | | 4,834 | |
Baker Hughes, Inc. | | | 12,200 | | | | 538 | |
Cameron International Corp. (Æ) | | | 36,036 | | | | 1,847 | |
Chevron Corp. | | | 44,484 | | | | 4,740 | |
ConocoPhillips | | | 26,400 | | | | 1,891 | |
Devon Energy Corp. | | | 50,502 | | | | 3,528 | |
Dresser-Rand Group, Inc. (Æ) | | | 35,196 | | | | 1,714 | |
El Paso Corp. | | | 149,216 | | | | 4,427 | |
EOG Resources, Inc. | | | 3,600 | | | | 395 | |
Exxon Mobil Corp. | | | 40,046 | | | | 3,458 | |
FMC Technologies, Inc. (Æ) | | | 42,300 | | | | 1,988 | |
Halliburton Co. | | | 101,293 | | | | 3,466 | |
Marathon Oil Corp. | | | 17,900 | | | | 525 | |
Marathon Petroleum Corp. | | | 4,000 | | | | 167 | |
National Oilwell Varco, Inc. | | | 73,450 | | | | 5,565 | |
Noble Energy, Inc. | | | 14,300 | | | | 1,420 | |
Occidental Petroleum Corp. | | | 27,300 | | | | 2,490 | |
Pioneer Natural Resources Co. | | | 3,000 | | | | 348 | |
Range Resources Corp. | | | 2,300 | | | | 153 | |
Royal Dutch Shell PLC - ADR (Æ) | | | 19,658 | | | | 1,406 | |
Schlumberger, Ltd. | | | 93,350 | | | | 6,921 | |
Southwestern Energy Co. (Æ) | | | 42,600 | | | | 1,345 | |
Valero Energy Corp. | | | 9,400 | | | | 232 | |
Williams Cos., Inc. (The) | | | 22,900 | | | | 779 | |
WPX Energy, Inc. (Æ) | | | 3,200 | | | | 56 | |
| | | | | | | | |
| | | | | | | 54,702 | |
| | | | | | | | |
| | |
| Financial Services - 14.0% | | | | | | | | |
ACE, Ltd. | | | 36,422 | | | | 2,767 | |
Aflac, Inc. | | | 4,300 | | | | 194 | |
Alexandria Real Estate Equities, Inc. (ö) | | | 1,600 | | | | 120 | |
Allstate Corp. (The) | | | 15,400 | | | | 513 | |
American Express Co. | | | 48,100 | | | | 2,896 | |
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 169 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
American Tower Corp. Class A (ö) | | | 1,100 | | | | 72 | |
Ameriprise Financial, Inc. | | | 3,700 | | | | 201 | |
Aon PLC | | | 31,000 | | | | 1,606 | |
Bank of America Corp. | | | 143,300 | | | | 1,162 | |
Bank of New York Mellon Corp. (The) | | | 6,100 | | | | 144 | |
Berkshire Hathaway, Inc. Class B (Æ) | | | 7,300 | | | | 587 | |
BlackRock, Inc. Class A | | | 1,700 | | | | 326 | |
Brandywine Realty Trust (ö) | | | 13,800 | | | | 164 | |
Capital One Financial Corp. | | | 26,000 | | | | 1,442 | |
Citigroup, Inc. | | | 99,500 | | | | 3,288 | |
CME Group, Inc. Class A | | | 1,800 | | | | 478 | |
Discover Financial Services | | | 8,700 | | | | 295 | |
Duke Realty Corp. (ö) | | | 11,500 | | | | 170 | |
DuPont Fabros Technology, Inc. (ö) | | | 3,000 | | | | 81 | |
Everest Re Group, Ltd. | | | 2,300 | | | | 228 | |
Fidelity National Information Services, Inc. | | | 5,200 | | | | 175 | |
Fifth Third Bancorp | | | 10,600 | | | | 151 | |
Goldman Sachs Group, Inc. (The) | | | 36,206 | | | | 4,169 | |
Hartford Financial Services Group, Inc. | | | 124,600 | | | | 2,561 | |
HCP, Inc. (ö) | | | 2,100 | | | | 87 | |
IntercontinentalExchange, Inc. (Æ) | | | 18,100 | | | | 2,408 | |
Invesco, Ltd. | | | 28,500 | | | | 708 | |
JPMorgan Chase & Co. | | | 110,249 | | | | 4,739 | |
Loews Corp. | | | 38,000 | | | | 1,563 | |
Mastercard, Inc. Class A | | | 7,883 | | | | 3,565 | |
MetLife, Inc. | | | 166,798 | | | | 6,010 | |
Morgan Stanley | | | 24,600 | | | | 425 | |
NYSE Euronext | | | 9,800 | | | | 252 | |
Prologis, Inc. (ö) | | | 9,600 | | | | 344 | |
Prudential Financial, Inc. | | | 12,400 | | | | 751 | |
Regency Centers Corp. (ö) | | | 2,800 | | | | 126 | |
Senior Housing Properties Trust (ö) | | | 21,000 | | | | 464 | |
Simon Property Group, Inc. (ö) | | | 4,800 | | | | 747 | |
State Street Corp. | | | 82,430 | | | | 3,810 | |
SunTrust Banks, Inc. | | | 6,400 | | | | 155 | |
Unum Group | | | 82,700 | | | | 1,963 | |
US Bancorp | | | 23,200 | | | | 746 | |
Ventas, Inc. (ö) | | | 4,400 | | | | 259 | |
Visa, Inc. Class A | | | 71,705 | | | | 8,818 | |
Vornado Realty Trust (ö) | | | 2,400 | | | | 206 | |
Wells Fargo & Co. | | | 223,132 | | | | 7,459 | |
| | | | | | | | |
| | | | | | | 69,395 | |
| | | | | | | | |
| | |
| Health Care - 13.7% | | | | | | | | |
Abbott Laboratories | | | 75,785 | | | | 4,703 | |
Aetna, Inc. | | | 4,000 | | | | 176 | |
Alexion Pharmaceuticals, Inc. (Æ) | | | 40,100 | | | | 3,622 | |
Allergan, Inc. | | | 34,500 | | | | 3,312 | |
Amgen, Inc. | | | 24,704 | | | | 1,757 | |
athenahealth, Inc. (Æ)(Ñ) | | | 11,900 | | | | 862 | |
Baxter International, Inc. | | | 2,300 | | | | 127 | |
Becton Dickinson and Co. | | | 3,300 | | | | 259 | |
Biogen Idec, Inc. (Æ) | | | 11,100 | | | | 1,487 | |
Cardinal Health, Inc. | | | 1,000 | | | | 42 | |
Celgene Corp. (Æ) | | | 20,300 | | | | 1,480 | |
Cerner Corp. (Æ) | | | 51,410 | | | | 4,169 | |
Covidien PLC | | | 88,848 | | | | 4,907 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Dentsply International, Inc. | | | 36,790 | | | | 1,511 | |
Express Scripts Holding Co. (Æ) | | | 38,099 | | | | 2,126 | |
Humana, Inc. | | | 10,500 | | | | 847 | |
Intuitive Surgical, Inc. (Æ) | | | 8,170 | | | | 4,724 | |
Johnson & Johnson | | | 6,600 | | | | 430 | |
McKesson Corp. | | | 8,100 | | | | 740 | |
Merck & Co., Inc. | | | 96,300 | | | | 3,779 | |
Mylan, Inc. (Æ) | | | 135,660 | | | | 2,945 | |
Novo Nordisk A/S - ADR | | | 16,120 | | | | 2,370 | |
PerkinElmer, Inc. | | | 2,100 | | | | 58 | |
Perrigo Co. | | | 21,780 | | | | 2,285 | |
Pfizer, Inc. | | | 227,000 | | | | 5,205 | |
Regeneron Pharmaceuticals, Inc. (Æ) | | | 23,600 | | | | 3,192 | |
Sanofi - ADR | | | 59,300 | | | | 2,264 | |
Teva Pharmaceutical Industries, Ltd. - ADR | | | 28,000 | | | | 1,281 | |
Thermo Fisher Scientific, Inc. | | | 50,744 | | | | 2,824 | |
UnitedHealth Group, Inc. | | | 70,210 | | | | 3,942 | |
Vertex Pharmaceuticals, Inc. (Æ) | | | 6,600 | | | | 254 | |
| | | | | | | | |
| | | | | | | 67,680 | |
| | | | | | | | |
|
| Materials and Processing - 4.9% | |
Air Products & Chemicals, Inc. | | | 8,800 | | | | 752 | |
Alcoa, Inc. | | | 21,400 | | | | 208 | |
AngloGold Ashanti, Ltd. - ADR | | | 63,100 | | | | 2,169 | |
Ball Corp. | | | 4,800 | | | | 200 | |
Barrick Gold Corp. | | | 42,300 | | | | 1,710 | |
CF Industries Holdings, Inc. | | | 2,500 | | | | 483 | |
Crown Holdings, Inc. (Æ) | | | 2,000 | | | | 74 | |
Dow Chemical Co. (The) | | | 9,600 | | | | 325 | |
Ecolab, Inc. | | | 49,450 | | | | 3,150 | |
EI du Pont de Nemours & Co. | | | 32,500 | | | | 1,737 | |
Freeport-McMoRan Copper & Gold, Inc. | | | 14,400 | | | | 552 | |
Masco Corp. | | | 17,600 | | | | 232 | |
Monsanto Co. | | | 35,820 | | | | 2,729 | |
Mosaic Co. (The) | | | 62,863 | | | | 3,320 | |
Newmont Mining Corp. | | | 4,800 | | | | 229 | |
PPG Industries, Inc. | | | 4,400 | | | | 463 | |
Praxair, Inc. | | | 51,128 | | | | 5,916 | |
United States Steel Corp. (Ñ) | | | 4,400 | | | | 125 | |
| | | | | | | | |
| | | | | | | 24,374 | |
| | | | | | | | |
| | |
| Producer Durables - 8.3% | | | | | | | | |
3M Co. | | | 8,300 | | | | 742 | |
Accenture PLC Class A | | | 3,800 | | | | 247 | |
Automatic Data Processing, Inc. | | | 55,500 | | | | 3,087 | |
CSX Corp. | | | 136,545 | | | | 3,046 | |
Cummins, Inc. | | | 1,400 | | | | 162 | |
Danone - ADR | | | 136,480 | | | | 1,919 | |
Deere & Co. | | | 1,500 | | | | 123 | |
Emerson Electric Co. | | | 29,900 | | | | 1,571 | |
FedEx Corp. | | | 1,300 | | | | 115 | |
Fluor Corp. | | | 18,700 | | | | 1,080 | |
General Electric Co. | | | 111,000 | | | | 2,173 | |
Genpact, Ltd. (Æ) | | | 4,800 | | | | 80 | |
Honeywell International, Inc. | | | 23,932 | | | | 1,452 | |
Ingersoll-Rand PLC | | | 28,000 | | | | 1,191 | |
Joy Global, Inc. | | | 20,850 | | | | 1,476 | |
| | | | |
| | 170 | | | 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, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Norfolk Southern Corp. | | | 13,400 | | | | 977 | |
PACCAR, Inc. | | | 47,100 | | | | 2,023 | |
Parker Hannifin Corp. | | | 800 | | | | 70 | |
Pitney Bowes, Inc. (Ñ) | | | 56,000 | | | | 959 | |
Raytheon Co. | | | 16,900 | | | | 915 | |
SPX Corp. | | | 7,600 | | | | 583 | |
Textron, Inc. | | | 4,000 | | | | 107 | |
Tyco International, Ltd. | | | 72,473 | | | | 4,068 | |
Union Pacific Corp. | | | 23,370 | | | | 2,628 | |
United Parcel Service, Inc. Class B | | | 36,036 | | | | 2,816 | |
United Technologies Corp. | | | 60,846 | | | | 4,967 | |
WW Grainger, Inc. | | | 11,200 | | | | 2,328 | |
| | | | | | | | |
| | | | | | | 40,905 | |
| | | | | | | | |
| | |
| Technology - 16.3% | | | | | | | | |
Adobe Systems, Inc. (Æ) | | | 11,900 | | | | 399 | |
Altera Corp. | | | 23,800 | | | | 847 | |
Apple, Inc. (Æ) | | | 32,810 | | | | 19,169 | |
ASML Holding NV Class G (Æ) | | | 44,900 | | | | 2,290 | |
Broadcom Corp. Class A (Æ) | | | 7,000 | | | | 256 | |
CA, Inc. | | | 119,800 | | | | 3,165 | |
Cisco Systems, Inc. | | | 181,400 | | | | 3,655 | |
Cognizant Technology Solutions Corp. Class A (Æ) | | | 11,600 | | | | 851 | |
Corning, Inc. | | | 14,300 | | | | 205 | |
Crown Castle International Corp. (Æ) | | | 5,400 | | | | 306 | |
EMC Corp. (Æ) | | | 30,600 | | | | 863 | |
F5 Networks, Inc. (Æ) | | | 20,800 | | | | 2,786 | |
Freescale Semiconductor Holdings I, Ltd. (Æ)(Ñ) | | | 10,000 | | | | 124 | |
Google, Inc. Class A (Æ) | | | 16,057 | | | | 9,718 | |
Hewlett-Packard Co. | | | 85,400 | | | | 2,115 | |
International Business Machines Corp. | | | 27,513 | | | | 5,697 | |
Juniper Networks, Inc. (Æ) | | | 6,200 | | | | 133 | |
Lam Research Corp. (Æ) | | | 4,500 | | | | 187 | |
Marvell Technology Group, Ltd. (Æ) | | | 18,800 | | | | 282 | |
Microsoft Corp. | | | 167,000 | | | | 5,347 | |
NetApp, Inc. (Æ) | | | 3,900 | | | | 151 | |
Novellus Systems, Inc. (Æ) | | | 6,600 | | | | 309 | |
ON Semiconductor Corp. (Æ) | | | 13,700 | | | | 113 | |
Oracle Corp. | | | 131,640 | | | | 3,869 | |
QUALCOMM, Inc. | | | 108,730 | | | | 6,941 | |
Red Hat, Inc. (Æ) | | | 39,390 | | | | 2,348 | |
Salesforce.com, Inc. (Æ) | | | 34,900 | | | | 5,435 | |
SanDisk Corp. (Æ) | | | 7,300 | | | | 270 | |
SAP AG - ADR (Ñ) | | | 21,850 | | | | 1,448 | |
Texas Instruments, Inc. | | | 17,900 | | | | 572 | |
Xilinx, Inc. | | | 19,200 | | | | 699 | |
Yahoo!, Inc. (Æ) | | | 4,100 | | | | 64 | |
Zynga, Inc. Class A (Æ)(Ñ) | | | 3,700 | | | | 31 | |
| | | | | | | | |
| | | | | | | 80,645 | |
| | | | | | | | |
| | |
| Utilities - 3.2% | | | | | | | | |
AGL Resources, Inc. | | | 12,000 | | | | 473 | |
Ameren Corp. | | | 2,400 | | | | 79 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
AT&T, Inc. | | | 28,300 | | | | 931 | |
Calpine Corp. (Æ) | | | 109,936 | | | | 2,061 | |
Canadian Natural Resources, Ltd. | | | 53,150 | | | | 1,847 | |
CenterPoint Energy, Inc. | | | 6,600 | | | | 133 | |
CMS Energy Corp. | | | 13,500 | | | | 310 | |
DTE Energy Co. | | | 5,300 | | | | 299 | |
Exelon Corp. | | | 3,906 | | | | 152 | |
FirstEnergy Corp. | | | 8,600 | | | | 403 | |
NextEra Energy, Inc. | | | 15,200 | | | | 978 | |
Northeast Utilities | | | 10,200 | | | | 375 | |
NRG Energy, Inc. (Æ) | | | 36,100 | | | | 614 | |
NV Energy, Inc. | | | 18,100 | | | | 301 | |
OGE Energy Corp. | | | 2,500 | | | | 135 | |
ONEOK, Inc. | | | 1,300 | | | | 112 | |
PG&E Corp. | | | 22,400 | | | | 990 | |
PPL Corp. | | | 21,700 | | | | 594 | |
Sempra Energy | | | 2,200 | | | | 142 | |
Sprint Nextel Corp. (Æ) | | | 50,100 | | | | 124 | |
Talisman Energy, Inc. | | | 192,500 | | | | 2,514 | |
Verizon Communications, Inc. | | | 57,500 | | | | 2,322 | |
| | | | | | | | |
| | | | | | | 15,889 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $335,631) | | | | | | | 458,512 | |
| | | | | | | | |
| | |
| Short-Term Investments - 6.8% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 33,624,885 | (¥) | | | 33,625 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $33,625) | | | | 33,625 | |
| | | | | | | | |
| | |
| Other Securities - 1.0% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 555,114 | (¥) | | | 565 | |
Russell U.S. Cash Collateral Fund (×) | | | 4,530,811 | (¥) | | | 4,531 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $5,086) | | | | | | | 5,096 | |
| | | | | | | | |
| |
Total Investments - 100.5%
(identified cost $374,342) | | | | 497,233 | |
| |
Other Assets and Liabilities,
Net - (0.5%) | | | | (2,302 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 494,931 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 171 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
| Long Positions | | | | | | | | | | | | | | | | | | | | |
DJIA Mini Index Futures (CME) | | | 41 | | | | USD | | | | 2,697 | | | | 06/12 | | | | 32 | |
S&P E-Mini Consumer Staples Select Sector Index Futures (CME) | | | 408 | | | | USD | | | | 13,864 | | | | 06/12 | | | | 202 | |
S&P E-Mini Utilities Select Sector Futures (CME) | | | 246 | | | | USD | | | | 8,799 | | | | 06/12 | | | | 165 | |
| | | | | | | | | | | | | | | | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | | | | 399 | |
| | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 76,209 | | | $ | — | | | $ | — | | | $ | 76,209 | | | | 15.4 | |
Consumer Staples | | | 28,713 | | | | — | | | | — | | | | 28,713 | | | | 5.8 | |
Energy | | | 54,702 | | | | — | | | | — | | | | 54,702 | | | | 11.1 | |
Financial Services | | | 69,395 | | | | — | | | | — | | | | 69,395 | | | | 14.0 | |
Health Care | | | 67,680 | | | | — | | | | — | | | | 67,680 | | | | 13.7 | |
Materials and Processing | | | 24,374 | | | | — | | | | — | | | | 24,374 | | | | 4.9 | |
Producer Durables | | | 40,905 | | | | — | | | | — | | | | 40,905 | | | | 8.3 | |
Technology | | | 80,645 | | | | — | | | | — | | | | 80,645 | | | | 16.3 | |
Utilities | | | 15,889 | | | | — | | | | — | | | | 15,889 | | | | 3.2 | |
Short-Term Investments | | | — | | | | 33,625 | | | | — | | | | 33,625 | | | | 6.8 | |
Other Securities | | | — | | | | 5,096 | | | | — | | | | 5,096 | | | | 1.0 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 458,512 | | | | 38,721 | | | | — | | | | 497,233 | | | | 100.5 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (0.5 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 399 | | | | — | | | | — | | | | 399 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | 399 | | | $ | — | | | $ | — | | | $ | 399 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 172 | | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 399 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 3,018 | |
| | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (924 | ) |
| | | | |
| * | 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 and 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 Tax-Managed U.S. Large Cap Fund | | 173 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 374,342 | |
Investments, at market*, ** | | | 497,233 | |
Cash (restricted) | | | 1,005 | |
Receivables: | | | | |
Dividends and interest | | | 338 | |
Dividends from affiliated Russell money market funds | | | 4 | |
Investments sold | | | 1,441 | |
Fund shares sold | | | 1,487 | |
Prepaid expenses | | | 1 | |
| | | | |
Total assets | | | 501,509 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 305 | |
Fund shares redeemed | | | 688 | |
Accrued fees to affiliates | | | 372 | |
Other accrued expenses | | | 96 | |
Daily variation margin on futures contracts | | | 31 | |
Payable upon return of securities loaned | | | 5,086 | |
| | | | |
Total liabilities | | | 6,578 | |
| | | | |
| | | | |
Net Assets | | $ | 494,931 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 174 | | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 687 | |
Accumulated net realized gain (loss) | | | (76,122 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 122,891 | |
Futures contracts | | | 399 | |
Shares of beneficial interest | | | 222 | |
Additional paid-in capital | | | 446,854 | |
| | | | |
Net Assets | | $ | 494,931 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 22.22 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 23.58 | |
Class A — Net assets | | $ | 3,898,148 | |
Class A — Shares outstanding ($.01 par value) | | | 175,407 | |
Net asset value per share: Class C(a) | | $ | 21.47 | |
Class C — Net assets | | $ | 9,746,141 | |
Class C — Shares outstanding ($.01 par value) | | | 453,845 | |
Net asset value per share: Class E(a) | | $ | 22.28 | |
Class E — Net assets | | $ | 21,857,245 | |
Class E — Shares outstanding ($.01 par value) | | | 981,087 | |
Net asset value per share: Class S(a) | | $ | 22.36 | |
Class S — Net assets | | $ | 459,429,873 | |
Class S — Shares outstanding ($.01 par value) | | | 20,544,673 | |
Amounts in thousands | | | | |
| | | | |
* Securities on loan included in investments | | $ | 4,890 | |
** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 38,721 | |
(a) 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.
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 175 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 3,423 | |
Dividends from affiliated Russell money market funds | | | 16 | |
Securities lending income | | | 28 | |
| | | | |
Total investment income | | | 3,467 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 1,592 | |
Administrative fees | | | 114 | |
Custodian fees | | | 40 | |
Distribution fees - Class A | | | 4 | |
Distribution fees - Class C | | | 35 | |
Transfer agent fees - Class A | | | 3 | |
Transfer agent fees - Class C | | | 8 | |
Transfer agent fees - Class E | | | 19 | |
Transfer agent fees - Class S | | | 379 | |
Professional fees | | | 22 | |
Registration fees | | | 45 | |
Shareholder servicing fees - Class C | | | 12 | |
Shareholder servicing fees - Class E | | | 26 | |
Trustees’ fees | | | 5 | |
Printing fees | | | 5 | |
Miscellaneous | �� | | 10 | |
| | | | |
Expenses before reductions | | | 2,319 | |
Expense reductions | | | (90 | ) |
| | | | |
Net expenses | | | 2,229 | |
| | | | |
Net investment income (loss) | | | 1,238 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 10,300 | |
Futures contracts | | | 3,018 | |
| | | | |
Net realized gain (loss) | | | 13,318 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 48,444 | |
Futures contracts | | | (924 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 47,520 | |
| | | | |
Net realized and unrealized gain (loss) | | | 60,838 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 62,076 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 176 | | | Russell Tax-Managed U.S. Large Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 1,238 | | | $ | 1,378 | |
Net realized gain (loss) | | | 13,318 | | | | 8,107 | |
Net change in unrealized appreciation (depreciation) | | | 47,520 | | | | 21,845 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 62,076 | | | | 31,330 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (2 | ) | | | (4 | ) |
Class E | | | (9 | ) | | | (43 | ) |
Class S | | | (1,202 | ) | | | (1,528 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (1,213 | ) | | | (1,575 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 1,052 | | | | 8,916 | |
Fund Reimbursements | | | — | | | | 291 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 61,915 | | | | 38,962 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 433,016 | | | | 394,054 | |
| | | | | | | | |
End of period | | $ | 494,931 | | | $ | 433,016 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 687 | | | $ | 662 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 177 |
Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | |
$
Net
Investment
Income (Loss)(a)(d) | | |
$
Net Realized
and Unrealized
Gain (Loss) | | |
$
Total from
Investment
Operations | | |
$
Distributions
from Net
Investment Income | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.49 | | | | .03 | | | | 2.72 | | | | 2.75 | | | | (.02 | ) |
October 31, 2011 | | | 18.15 | | | | .02 | | | | 1.38 | | | | 1.40 | | | | (.06 | ) |
October 31, 2010(5) | | | 16.60 | | | | — | | | | 1.55 | | | | 1.55 | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 18.88 | | | | (.04 | ) | | | 2.63 | | | | 2.59 | | | | — | |
October 31, 2011 | | | 17.65 | | | | (.12 | ) | | | 1.35 | | | | 1.23 | | | | — | |
October 31, 2010 | | | 15.16 | | | | (.09 | ) | | | 2.58 | | | | 2.49 | | | | — | |
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 | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.53 | | | | .03 | | | | 2.73 | | | | 2.76 | | | | (.01 | ) |
October 31, 2011 | | | 18.15 | | | | .02 | | | | 1.40 | | | | 1.42 | | | | (.04 | ) |
October 31, 2010 | | | 15.54 | | | | .03 | | | | 2.66 | | | | 2.69 | | | | (.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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.63 | | | | .06 | | | | 2.73 | | | | 2.79 | | | | (.06 | ) |
October 31, 2011 | | | 18.24 | | | | .07 | | | | 1.40 | | | | 1.47 | | | | (.08 | ) |
October 31, 2010 | | | 15.61 | | | | .08 | | | | 2.66 | | | | 2.74 | | | | (.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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 178 | | | Russell Tax-Managed U.S. Large Cap Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.02 | ) | | | 22.22 | | | | 14.11 | | | | 3,898 | | | | 1.24 | | | | 1.24 | | | | .26 | | | | 32 | |
| | (.06 | ) | | | 19.49 | | | | 7.73 | | | | 2,682 | | | | 1.24 | | | | 1.24 | | | | .10 | | | | 58 | |
| | — | | | | 18.15 | | | | 9.34 | | | | 729 | | | | 1.24 | | | | 1.24 | | | | (.01 | ) | | | 82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 21.47 | | | | 13.71 | | | | 9,746 | | | | 1.99 | | | | 1.95 | | | | (.42 | ) | | | 32 | |
| | — | | | | 18.88 | | | | 7.03 | | | | 9,217 | | | | 2.01 | | | | 1.95 | | | | (.64 | ) | | | 58 | |
| | — | | | | 17.65 | | | | 16.42 | | | | 10,996 | | | | 1.99 | | | | 1.91 | | | | (.55 | ) | | | 82 | |
| | (.01 | ) | | | 15.16 | | | | 11.98 | | | | 12,383 | | | | 2.00 | | | | 1.92 | | | | .05 | | | | 56 | |
| | — | | | | 13.55 | | | | (40.52 | ) | | | 13,387 | | | | 1.94 | | | | 1.92 | | | | (.04 | ) | | | 54 | |
| | — | | | | 22.78 | | | | 16.11 | | | | 21,692 | | | | 1.92 | | | | 1.92 | | | | (.30 | ) | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.01 | ) | | | 22.28 | | | | 14.13 | | | | 21,857 | | | | 1.24 | | | | 1.20 | | | | .34 | | | | 32 | |
| | (.04 | ) | | | 19.53 | | | | 7.82 | | | | 20,474 | | | | 1.26 | | | | 1.20 | | | | .12 | | | | 58 | |
| | (.08 | ) | | | 18.15 | | | | 17.36 | | | | 19,744 | | | | 1.24 | | | | 1.16 | | | | .19 | | | | 82 | |
| | (.16 | ) | | | 15.54 | | | | 12.74 | | | | 14,488 | | | | 1.25 | | | | 1.17 | | | | .74 | | | | 56 | |
| | (.11 | ) | | | 13.96 | | | | (40.06 | ) | | | 12,645 | | | | 1.19 | | | | 1.18 | | | | .71 | | | | 54 | |
| | (.12 | ) | | | 23.41 | | | | 17.01 | | | | 16,891 | | | | 1.17 | | | | 1.17 | | | | .45 | | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.06 | ) | | | 22.36 | | | | 14.25 | | | | 459,430 | | | | .99 | | | | .95 | | | | .58 | | | | 32 | |
| | (.08 | ) | | | 19.63 | | | | 8.04 | | | | 400,643 | | | | 1.01 | | | | .95 | | | | .36 | | | | 58 | |
| | (.11 | ) | | | 18.24 | | | | 17.65 | | | | 362,585 | | | | .99 | | | | .91 | | | | .44 | | | | 82 | |
| | (.20 | ) | | | 15.61 | | | | 13.07 | | | | 314,574 | | | | 1.00 | | | | .92 | | | | 1.03 | | | | 56 | |
| | (.16 | ) | | | 14.03 | | | | (39.91 | ) | | | 331,605 | | | | .94 | | | | .93 | | | | .97 | | | | 54 | |
| | (.16 | ) | | | 23.52 | | | | 17.28 | | | | 572,138 | | | | .92 | | | | .92 | | | | .70 | | | | 50 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Large Cap Fund | | 179 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,116.56 | | | $ | 1,017.26 | |
Expenses Paid During Period* | | $ | 8.05 | | | $ | 7.67 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.53% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,112.45 | | | $ | 1,013.67 | |
Expenses Paid During Period* | | $ | 11.82 | | | $ | 11.27 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.25% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,116.47 | | | $ | 1,017.40 | |
Expenses Paid During Period* | | $ | 7.89 | | | $ | 7.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 180 | | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Shareholder Expense Example, continued —April 30, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,117.85 | | | $ | 1,018.65 | |
Expenses Paid During Period* | | $ | 6.58 | | | $ | 6.27 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.25% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 181 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 96.4% | | | | | | | | |
| Consumer Discretionary - 17.5% | | | | | |
1-800-Flowers.com, Inc. Class A (Æ) | | | 7,271 | | | | 22 | |
Aaron’s, Inc. Class A | | | 25,259 | | | | 686 | |
Abercrombie & Fitch Co. Class A | | | 6,947 | | | | 349 | |
Aeropostale, Inc. (Æ) | | | 6,007 | | | | 133 | |
American Public Education,
Inc. (Æ)(Ñ) | | | 1,167 | | | | 41 | |
Amerigon, Inc. (Æ) | | | 69,840 | | | | 999 | |
ANN, Inc. (Æ) | | | 20,873 | | | | 578 | |
Arbitron, Inc. | | | 13,531 | | | | 515 | |
Barnes & Noble, Inc. (Æ)(Ñ) | | | 7,464 | | | | 155 | |
Beazer Homes USA, Inc. (Æ)(Ñ) | | | 22,791 | | | | 71 | |
Biglari Holdings, Inc. (Æ) | | | 264 | | | | 107 | |
BJ’s Restaurants, Inc. (Æ) | | | 12,600 | | | | 544 | |
Body Central Corp. (Æ) | | | 20,900 | | | | 635 | |
Bravo Brio Restaurant Group, Inc. (Æ) | | | 15,796 | | | | 319 | |
Brinker International, Inc. | | | 7,033 | | | | 221 | |
Buffalo Wild Wings, Inc. (Æ) | | | 11,100 | | | | 931 | |
Cabela’s, Inc. (Æ) | | | 20,323 | | | | 768 | |
Callaway Golf Co. (Ñ) | | | 14,281 | | | | 88 | |
Capella Education Co. (Æ) | | | 11,494 | | | | 376 | |
Caribou Coffee Co., Inc. (Æ) | | | 29,000 | | | | 476 | |
CarMax, Inc. (Æ) | | | 6,268 | | | | 193 | |
Carter’s, Inc. (Æ)(Ñ) | | | 12,280 | | | | 667 | |
Cato Corp. (The) Class A | | | 21,680 | | | | 603 | |
Cedar Fair, LP | | | 16,628 | | | | 517 | |
Cheesecake Factory, Inc. (The) (Æ) | | | 14,850 | | | | 468 | |
Chico’s FAS, Inc. | | | 11,111 | | | | 171 | |
Coinstar, Inc. (Æ)(Ñ) | | | 10,419 | | | | 654 | |
Cooper Tire & Rubber Co. | | | 17,050 | | | | 255 | |
Crocs, Inc. (Æ) | | | 14,490 | | | | 293 | |
Dana Holding Corp. | | | 9,122 | | | | 133 | |
Domino’s Pizza, Inc. | | | 18,347 | | | | 694 | |
Dorman Products, Inc. (Æ) | | | 6,603 | | | | 315 | |
DR Horton, Inc. (Ñ) | | | 8,130 | | | | 133 | |
Ethan Allen Interiors, Inc. (Ñ) | | | 23,009 | | | | 534 | |
Gannett Co., Inc. | | | 6,655 | | | | 92 | |
Gaylord Entertainment Co. (Æ) | | | 4,050 | | | | 127 | |
Gentex Corp. | | | 6,490 | | | | 143 | |
G-III Apparel Group, Ltd. (Æ) | | | 20,500 | | | | 550 | |
Goodyear Tire & Rubber Co. (The) (Æ) | | | 4,677 | | | | 51 | |
Grand Canyon Education, Inc. (Æ) | | | 4,828 | | | | 84 | |
Guess?, Inc. | | | 10,720 | | | | 314 | |
Hanesbrands, Inc. (Æ) | | | 2,562 | | | | 72 | |
Hertz Global Holdings, Inc. (Æ) | | | 12,338 | | | | 190 | |
Hibbett Sports, Inc. (Æ) | | | 24,600 | | | | 1,469 | |
Iconix Brand Group, Inc. (Æ) | | | 6,562 | | | | 101 | |
Interpublic Group of Cos., Inc. (The) | | | 14,186 | | | | 168 | |
Jack in the Box, Inc. (Æ) | | | 17,445 | | | | 396 | |
John Wiley & Sons, Inc. Class A | | | 3,050 | | | | 138 | |
Lamar Advertising Co. Class A (Æ)(Ñ) | | | 2,710 | | | | 86 | |
Liberty Media Corp. - Liberty Capital Class A (Æ) | | | 1,049 | | | | 92 | |
Life Time Fitness, Inc. (Æ) | | | 2,427 | | | | 113 | |
LKQ Corp. (Æ) | | | 43,800 | | | | 1,465 | |
Matthews International Corp. Class A | | | 10,100 | | | | 303 | |
Meredith Corp. (Ñ) | | | 16,175 | | | | 466 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Monro Muffler Brake, Inc. | | | 15,950 | | | | 658 | |
Nutrisystem, Inc. | | | 8,434 | | | | 98 | |
OfficeMax, Inc. (Æ) | | | 17,480 | | | | 81 | |
Penn National Gaming, Inc. (Æ) | | | 6,280 | | | | 282 | |
Pool Corp. | | | 5,175 | | | | 191 | |
PulteGroup, Inc. (Æ) | | | 13,601 | | | | 134 | |
PVH Corp. | | | 1,437 | | | | 128 | |
QuinStreet, Inc. (Æ)(Ñ) | | | 7,235 | | | | 76 | |
RealD, Inc. (Æ)(Ñ) | | | 3,787 | | | | 46 | |
Red Robin Gourmet Burgers, Inc. (Æ) | | | 2,331 | | | | 83 | |
Ross Stores, Inc. | | | 3,131 | | | | 193 | |
Scientific Games Corp. Class A (Æ) | | | 28,650 | | | | 291 | |
Service Corp. International | | | 12,050 | | | | 140 | |
Shoe Carnival, Inc. (Æ) | | | 6,564 | | | | 128 | |
Shutterfly, Inc. (Æ)(Ñ) | | | 13,700 | | | | 426 | |
Signet Jewelers, Ltd. | | | 3,997 | | | | 195 | |
Snap-on, Inc. | | | 4,920 | | | | 308 | |
Steven Madden, Ltd. (Æ) | | | 11,445 | | | | 495 | |
Teavana Holdings, Inc. (Æ)(Ñ) | | | 45,930 | | | | 959 | |
Tenneco, Inc. (Æ) | | | 17,583 | | | | 542 | |
Tiffany & Co. | | | 1,713 | | | | 117 | |
TiVo, Inc. (Æ) | | | 8,638 | | | | 93 | |
Tractor Supply Co. | | | 8,215 | | | | 808 | |
Tupperware Brands Corp. | | | 3,498 | | | | 218 | |
ValueClick, Inc. (Æ) | | | 20,546 | | | | 435 | |
Vera Bradley, Inc. (Æ)(Ñ) | | | 9,180 | | | | 238 | |
Weyco Group, Inc. (Ñ) | | | 1,174 | | | | 29 | |
WMS Industries, Inc. (Æ) | | | 17,034 | | | | 418 | |
Wolverine World Wide, Inc. | | | 2,368 | | | | 99 | |
Wyndham Worldwide Corp. | | | 5,420 | | | | 273 | |
| | | | | | | | |
| | | | | | | 28,246 | |
| | | | | | | | |
| | |
| Consumer Staples - 3.7% | | | | | | | | |
Casey’s General Stores, Inc. | | | 15,672 | | | | 883 | |
Constellation Brands, Inc. Class A (Æ) | | | 3,659 | | | | 79 | |
Flowers Foods, Inc. | | | 21,569 | | | | 463 | |
Fresh Market, Inc. (The) (Æ)(Ñ) | | | 6,970 | | | | 357 | |
Hain Celestial Group, Inc. (The) (Æ) | | | 11,604 | | | | 549 | |
Harris Teeter Supermarkets, Inc. | | | 4,139 | | | | 157 | |
Herbalife, Ltd. | | | 1,923 | | | | 135 | |
JM Smucker Co. (The) | | | 1,628 | | | | 130 | |
Monster Beverage Corp. (Æ) | | | 4,044 | | | | 263 | |
Peet’s Coffee & Tea, Inc. (Æ)(Ñ) | | | 12,400 | | | | 952 | |
Ralcorp Holdings, Inc. (Æ) | | | 2,473 | | | | 180 | |
TreeHouse Foods, Inc. (Æ) | | | 20,170 | | | | 1,160 | |
United Natural Foods, Inc. (Æ) | | | 12,930 | | | | 637 | |
Vector Group, Ltd. (Ñ) | | | 2,637 | | | | 46 | |
| | | | | | | | |
| | | | | | | 5,991 | |
| | | | | | | | |
| | |
| Energy - 3.5% | | | | | | | | |
Bill Barrett Corp. (Æ) | | | 11,943 | | | | 286 | |
Cabot Oil & Gas Corp. | | | 16,274 | | | | 572 | |
Core Laboratories NV | | | 1,900 | | | | 260 | |
Dril-Quip, Inc. (Æ) | | | 12,000 | | | | 809 | |
Exterran Holdings, Inc. (Æ) | | | 5,964 | | | | 81 | |
ION Geophysical Corp. (Æ) | | | 36,341 | | | | 226 | |
Key Energy Services, Inc. (Æ) | | | 19,190 | | | | 243 | |
| | | | |
| | 182 | | | 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, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Kodiak Oil & Gas Corp. (Æ)(Ñ) | | | 5,123 | | | | 45 | |
Lufkin Industries, Inc. | | | 2,406 | | | | 185 | |
North American Energy Partners, Inc. (Æ) | | | 25,359 | | | | 99 | |
Oceaneering International, Inc. | | | 3,328 | | | | 172 | |
Oil States International, Inc. (Æ) | | | 2,698 | | | | 215 | |
Plains Exploration & Production Co. (Æ) | | | 3,280 | | | | 134 | |
Rosetta Resources, Inc. (Æ) | | | 3,716 | | | | 187 | |
SandRidge Energy, Inc. (Æ)(Ñ) | | | 13,772 | | | | 110 | |
Superior Energy Services, Inc. (Æ) | | | 17,417 | | | | 469 | |
Tesoro Corp. (Æ) | | | 6,407 | | | | 149 | |
TETRA Technologies, Inc. (Æ) | | | 7,629 | | | | 66 | |
Walter Energy, Inc. Class A | | | 5,598 | | | | 371 | |
Whiting Petroleum Corp. (Æ) | | | 15,010 | | | | 859 | |
World Fuel Services Corp. | | | 4,108 | | | | 181 | |
| | | | | | | | |
| | | | | | | 5,719 | |
| | | | | | | | |
| | |
| Financial Services - 17.8% | | | | | | | | |
Advent Software, Inc. (Æ) | | | 40,200 | | | | 1,085 | |
Affiliated Managers Group, Inc. (Æ) | | | 3,150 | | | | 358 | |
American Campus Communities, Inc. (ö) | | | 2,110 | | | | 94 | |
American Equity Investment Life Holding Co. (Ñ) | | | 57,023 | | | | 699 | |
Apollo Investment Corp. | | | 8,068 | | | | 58 | |
Ares Capital Corp. | | | 10,550 | | | | 169 | |
Argo Group International Holdings, Ltd. | | | 18,274 | | | | 527 | |
Assured Guaranty, Ltd. | | | 7,127 | | | | 101 | |
Axis Capital Holdings, Ltd. | | | 5,601 | | | | 191 | |
Banco Latinoamericano de Comercio Exterior SA Class E | | | 6,718 | | | | 140 | |
Bank of Hawaii Corp. | | | 8,637 | | | | 422 | |
Bank of the Ozarks, Inc. | | | 22,960 | | | | 709 | |
BioMed Realty Trust, Inc. Class A (ö) | | | 16,835 | | | | 334 | |
Broadridge Financial Solutions, Inc. | | | 5,818 | | | | 135 | |
Brookline Bancorp, Inc. | | | 10,267 | | | | 92 | |
Camden Property Trust (ö) | | | 3,363 | | | | 228 | |
Cardtronics, Inc. (Æ) | | | 8,260 | | | | 218 | |
Cash America International, Inc. | | | 2,112 | | | | 99 | |
CBL & Associates Properties, Inc. (ö) | | | 5,858 | | | | 109 | |
CBOE Holdings, Inc. | | | 3,885 | | | | 103 | |
CBRE Group, Inc. Class A (Æ) | | | 24,728 | | | | 465 | |
Cedar Realty Trust, Inc. (ö) | | | 39,121 | | | | 204 | |
Chimera Investment Corp. (ö) | | | 24,663 | | | | 71 | |
Columbia Banking System, Inc. | | | 5,350 | | | | 110 | |
Community Bank System, Inc. | | | 18,561 | | | | 522 | |
CreXus Investment Corp. (ö) | | | 10,850 | | | | 114 | |
CVB Financial Corp. (Ñ) | | | 10,947 | | | | 127 | |
Delphi Financial Group, Inc. Class A | | | 4,167 | | | | 189 | |
DuPont Fabros Technology, Inc. (Ñ)(ö) | | | 14,675 | | | | 398 | |
East West Bancorp, Inc. | | | 14,440 | | | | 329 | |
Endurance Specialty Holdings, Ltd. | | | 11,735 | | | | 471 | |
Equifax, Inc. | | | 9,439 | | | | 432 | |
Evercore Partners, Inc. Class A | | | 20,330 | | | | 537 | |
Extra Space Storage, Inc. (ö) | | | 6,553 | | | | 199 | |
Ezcorp, Inc. Class A (Æ) | | | 30,770 | | | | 824 | |
Fair Isaac Corp. | | | 18,161 | | | | 779 | |
Federal Agricultural Mortgage Corp. Class C | | | 6,190 | | | | 141 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Federal Realty Investment Trust (ö) | | | 2,477 | | | | 249 | |
FelCor Lodging Trust, Inc. (Æ)(ö) | | | 96,978 | | | | 409 | |
Fidelity National Financial, Inc. Class A | | | 8,883 | | | | 171 | |
First Financial Bankshares, Inc. (Ñ) | | | 12,610 | | | | 427 | |
First Industrial Realty Trust,
Inc. (Æ)(ö) | | | 45,427 | | | | 561 | |
FNB Corp. | | | 40,950 | | | | 465 | |
Glacier Bancorp, Inc. | | | 37,110 | | | | 553 | |
Hanover Insurance Group, Inc. (The) | | | 12,728 | | | | 514 | |
Health Care REIT, Inc. (ö) | | | 2,607 | | | | 148 | |
Healthcare Realty Trust, Inc. (ö) | | | 21,925 | | | | 471 | |
Home Properties, Inc. (ö) | | | 7,602 | | | | 464 | |
Hudson City Bancorp, Inc. | | | 16,855 | | | | 119 | |
Huntington Bancshares, Inc. | | | 18,060 | | | | 121 | |
Iberiabank Corp. | | | 2,759 | | | | 141 | |
Imperial Holdings, Inc. (Æ) | | | 12,830 | | | | 49 | |
Inland Real Estate Corp. (Ñ)(ö) | | | 14,388 | | | | 124 | |
iStar Financial, Inc. (Æ)(Ñ)(ö) | | | 15,472 | | | | 107 | |
Jefferies Group, Inc. (Ñ) | | | 6,043 | | | | 96 | |
Kayne Anderson Energy Development Co. | | | 5,082 | | | | 130 | |
KeyCorp | | | 15,208 | | | | 122 | |
Macerich Co. (The) (ö) | | | 2,415 | | | | 149 | |
Manning & Napier, Inc. Class A | | | 5,718 | | | | 83 | |
Markel Corp. (Æ) | | | 428 | | | | 188 | |
MarketAxess Holdings, Inc. | | | 8,790 | | | | 302 | |
MBIA, Inc. (Æ)(Ñ) | | | 8,108 | | | | 82 | |
MGIC Investment Corp. (Æ)(Ñ) | | | 86,064 | | | | 298 | |
Mid-America Apartment Communities, Inc. (ö) | | | 15,704 | | | | 1,069 | |
MSCI, Inc. Class A (Æ) | | | 2,915 | | | | 107 | |
National Health Investors, Inc. (ö) | | | 8,266 | | | | 409 | |
Navigators Group, Inc. (The) (Æ) | | | 2,541 | | | | 121 | |
Old National Bancorp | | | 38,040 | | | | 488 | |
Oritani Financial Corp. | | | 9,092 | | | | 135 | |
PacWest Bancorp | | | 5,060 | | | | 120 | |
Post Properties, Inc. (ö) | | | 3,920 | | | | 191 | |
Prosperity Bancshares, Inc. | | | 10,755 | | | | 502 | |
PS Business Parks, Inc. (ö) | | | 7,750 | | | | 529 | |
Raymond James Financial, Inc. | | | 4,948 | | | | 181 | |
Reinsurance Group of America, Inc. Class A | | | 2,243 | | | | 130 | |
Resource Capital Corp. (ö) | | | 18,643 | | | | 101 | |
Selective Insurance Group, Inc. | | | 64,363 | | | | 1,126 | |
Signature Bank NY (Æ) | | | 8,061 | | | | 529 | |
SL Green Realty Corp. (ö) | | | 1,767 | | | | 146 | |
Sun Communities, Inc. (ö) | | | 23,646 | | | | 1,034 | |
Tanger Factory Outlet Centers (ö) | | | 6,269 | | | | 196 | |
Two Harbors Investment Corp. (ö) | | | 6,804 | | | | 71 | |
UMB Financial Corp. | | | 10,400 | | | | 500 | |
Umpqua Holdings Corp. | | | 44,334 | | | | 587 | |
United Bankshares, Inc. (Ñ) | | | 10,970 | | | | 290 | |
Valley National Bancorp (Ñ) | | | 35,663 | | | | 449 | |
Ventas, Inc. (ö) | | | 2,794 | | | | 164 | |
Waddell & Reed Financial, Inc. Class A | | | 5,063 | | | | 162 | |
Walter Investment Management Corp. | | | 1,722 | | | | 35 | |
Webster Financial Corp. | | | 17,888 | | | | 407 | |
Westamerica Bancorporation | | | 7,283 | | | | 334 | |
Westwood Holdings Group, Inc. | | | 2,364 | | | | 87 | |
WSFS Financial Corp. | | | 2,808 | | | | 112 | |
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 183 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Zions Bancorporation | | | 6,307 | | | | 129 | |
| | | | | | | | |
| | | | | | | 28,767 | |
| | | | | | | | |
| | |
| Health Care - 11.1% | | | | | | | | |
Akorn, Inc. (Æ) | | | 24,520 | | | | 297 | |
Alexion Pharmaceuticals, Inc. (Æ) | | | 1,299 | | | | 117 | |
Align Technology, Inc. (Æ) | | | 6,834 | | | | 217 | |
Allscripts Healthcare Solutions, Inc. (Æ) | | | 6,952 | | | | 77 | |
Amylin Pharmaceuticals, Inc. (Æ) | | | 6,453 | | | | 167 | |
Ariad Pharmaceuticals, Inc. (Æ) | | | 5,879 | | | | 96 | |
BioMarin Pharmaceutical, Inc. (Æ) | | | 2,637 | | | | 92 | |
Bio-Reference Labs, Inc. (Æ)(Ñ) | | | 28,608 | | | | 610 | |
Catalyst Health Solutions, Inc. (Æ) | | | 4,200 | | | | 363 | |
Celldex Therapeutics, Inc. (Æ) | | | 19,172 | | | | 87 | |
Chemed Corp. | | | 2,573 | | | | 155 | |
Conceptus, Inc. (Æ)(Ñ) | | | 6,513 | | | | 122 | |
Cooper Cos., Inc. (The) | | | 2,326 | | | | 205 | |
Covance, Inc. (Æ) | | | 2,834 | | | | 133 | |
Cubist Pharmaceuticals, Inc. (Æ) | | | 6,630 | | | | 280 | |
Endo Pharmaceuticals Holdings, Inc. (Æ) | | | 2,970 | | | | 104 | |
Greatbatch, Inc. (Æ) | | | 18,121 | | | | 422 | |
Greenway Medical Technologies (Æ) | | | 31,659 | | | | 488 | |
Haemonetics Corp. (Æ) | | | 15,532 | | | | 1,112 | |
Hanger Orthopedic Group, Inc. (Æ) | | | 7,750 | | | | 183 | |
HealthSouth Corp. (Æ) | | | 3,847 | | | | 86 | |
Henry Schein, Inc. (Æ) | | | 1,797 | | | | 138 | |
HMS Holdings Corp. (Æ) | | | 37,200 | | | | 895 | |
Hologic, Inc. (Æ) | | | 9,896 | | | | 189 | |
Human Genome Sciences, Inc. (Æ)(Ñ) | | | 6,757 | | | | 99 | |
IPC The Hospitalist Co., Inc. (Æ) | | | 12,052 | | | | 463 | |
Isis Pharmaceuticals, Inc. (Æ) | | | 9,116 | | | | 73 | |
Kindred Healthcare, Inc. (Æ) | | | 12,780 | | | | 123 | |
LifePoint Hospitals, Inc. (Æ) | | | 9,464 | | | | 369 | |
Magellan Health Services, Inc. (Æ) | | | 7,596 | | | | 336 | |
MedAssets, Inc. (Æ) | | | 6,646 | | | | 84 | |
Medivation, Inc. (Æ) | | | 4,210 | | | | 341 | |
MEDNAX, Inc. (Æ)(Ñ) | | | 2,682 | | | | 188 | |
Meridian Bioscience, Inc. (Ñ) | | | 4,405 | | | | 91 | |
Merit Medical Systems, Inc. (Æ) | | | 35,553 | | | | 470 | |
MWI Veterinary Supply, Inc. (Æ) | | | 17,687 | | | | 1,670 | |
Neogen Corp. (Æ) | | | 13,902 | | | | 542 | |
Omnicell, Inc. (Æ) | | | 8,346 | | | | 119 | |
Onyx Pharmaceuticals, Inc. (Æ) | | | 7,580 | | | | 345 | |
Orexigen Therapeutics, Inc. (Æ) | | | 26,292 | | | | 92 | |
Orthofix International NV (Æ) | | | 3,868 | | | | 159 | |
PSS World Medical, Inc. (Æ) | | | 14,728 | | | | 352 | |
Quality Systems, Inc. | | | 2,976 | | | | 111 | |
Regeneron Pharmaceuticals, Inc. (Æ) | | | 2,846 | | | | 385 | |
Seattle Genetics, Inc. (Æ)(Ñ) | | | 4,553 | | | | 90 | |
Sunrise Senior Living, Inc. (Æ)(Ñ) | | | 75,880 | | | | 477 | |
SXC Health Solutions Corp. (Æ) | | | 19,560 | | | | 1,772 | |
Tenet Healthcare Corp. (Æ) | | | 19,776 | | | | 103 | |
Universal Health Services, Inc. Class B | | | 7,700 | | | | 329 | |
US Physical Therapy, Inc. | | | 24,333 | | | | 593 | |
VCA Antech, Inc. (Æ) | | | 9,350 | | | | 221 | |
ViroPharma, Inc. (Æ) | | | 6,312 | | | | 137 | |
Watson Pharmaceuticals, Inc. Class B (Æ) | | | 2,279 | | | | 172 | |
WellCare Health Plans, Inc. (Æ) | | | 3,920 | | | | 240 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Wright Medical Group, Inc. (Æ) | | | 36,475 | | | | 680 | |
| | | | | | | | |
| | | | | | | 17,861 | |
| | | | | | | | |
| |
| Materials and Processing - 5.3% | | | | | |
AAON, Inc. (Ñ) | | | 7,211 | | | | 147 | |
Acuity Brands, Inc. | | | 7,419 | | | | 412 | |
Airgas, Inc. | | | 2,964 | | | | 272 | |
Albemarle Corp. | | | 5,790 | | | | 378 | |
Allied Nevada Gold Corp. (Æ) | | | 3,643 | | | | 107 | |
Ashland, Inc. | | | 1,528 | | | | 101 | |
Ball Corp. | | | 4,470 | | | | 187 | |
Belden, Inc. | | | 3,830 | | | | 133 | |
Carpenter Technology Corp. | | | 9,881 | | | | 550 | |
Clarcor, Inc. | | | 9,875 | | | | 474 | |
Coeur d’Alene Mines Corp. (Æ) | | | 2,755 | | | | 59 | |
Compass Minerals International, Inc. | | | 7,268 | | | | 556 | |
Crown Holdings, Inc. (Æ) | | | 13,253 | | | | 490 | |
Eagle Materials, Inc. | | | 4,568 | | | | 161 | |
Eastman Chemical Co. | | | 2,988 | | | | 161 | |
Gibraltar Industries, Inc. (Æ) | | | 23,198 | | | | 314 | |
Horsehead Holding Corp. (Æ) | | | 11,069 | | | | 124 | |
Interline Brands, Inc. (Æ) | | | 20,476 | | | | 431 | |
Intrepid Potash, Inc. (Æ) | | | 17,325 | | | | 430 | |
Koppers Holdings, Inc. | | | 15,575 | | | | 606 | |
Lennox International, Inc. | | | 3,585 | | | | 156 | |
Minerals Technologies, Inc. | | | 6,711 | | | | 450 | |
Owens Corning (Æ) | | | 15,717 | | | | 540 | |
Packaging Corp. of America | | | 5,026 | | | | 147 | |
Post Holdings, Inc. (Æ) | | | 1,236 | | | | 37 | |
RPM International, Inc. | | | 8,007 | | | | 213 | |
Solutia, Inc. | | | 4,502 | | | | 128 | |
Sonoco Products Co. | | | 3,910 | | | | 129 | |
Steel Dynamics, Inc. | | | 7,619 | | | | 97 | |
Stillwater Mining Co. (Æ) | | | 4,686 | | | | 50 | |
Timken Co. | | | 4,300 | | | | 243 | |
Universal Forest Products, Inc. | | | 2,625 | | | | 98 | |
WR Grace & Co. (Æ) | | | 3,939 | | | | 235 | |
| | | | | | | | |
| | | | | | | 8,616 | |
| | | | | | | | |
| |
| Producer Durables - 17.1% | | | | | |
Accuride Corp. (Æ) | | | 85,112 | | | | 617 | |
Actuant Corp. Class A | | | 20,095 | | | | 548 | |
Advisory Board Co. (The)(Æ) | | | 18,027 | | | | 1,643 | |
AECOM Technology Corp. (Æ) | | | 5,926 | | | | 131 | |
Allegiant Travel Co. Class A (Æ)(Ñ) | | | 2,304 | | | | 135 | |
Ametek, Inc. | | | 9,137 | | | | 460 | |
Applied Industrial Technologies, Inc. | | | 4,854 | | | | 191 | |
Arkansas Best Corp. | | | 12,675 | | | | 194 | |
Atlas Air Worldwide Holdings, Inc. (Æ) | | | 5,460 | | | | 251 | |
Babcock & Wilcox Co. (The) (Æ) | | | 4,380 | | | | 108 | |
Barnes Group, Inc. | | | 25,834 | | | | 682 | |
Bristow Group, Inc. | | | 18,259 | | | | 892 | |
Carlisle Cos., Inc. | | | 3,361 | | | | 185 | |
CDI Corp. | | | 6,882 | | | | 122 | |
Celadon Group, Inc. | | | 5,958 | | | | 93 | |
Chart Industries, Inc. (Æ) | | | 6,360 | | | | 486 | |
Chicago Bridge & Iron Co. NV | | | 2,329 | | | | 103 | |
| | | | |
| | 184 | | | 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, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Colfax Corp. (Æ) | | | 7,900 | | | | 268 | |
Commercial Vehicle Group, Inc. (Æ) | | | 39,531 | | | | 421 | |
Con-way, Inc. | | | 3,100 | | | | 101 | |
Corporate Executive Board Co. (The) | | | 10,775 | | | | 446 | |
Corrections Corp. of America | | | 6,957 | | | | 201 | |
CoStar Group, Inc. (Æ) | | | 10,500 | | | | 765 | |
Echo Global Logistics, Inc. (Æ)(Ñ) | | | 56,000 | | | | 954 | |
EnPro Industries, Inc. (Æ) | | | 10,220 | | | | 423 | |
ExlService Holdings, Inc. (Æ) | | | 49,428 | | | | 1,368 | |
Forward Air Corp. | | | 3,059 | | | | 103 | |
Franklin Electric Co., Inc. | | | 9,280 | | | | 465 | |
G&K Services, Inc. Class A | | | 7,000 | | | | 230 | |
Gardner Denver, Inc. | | | 7,347 | | | | 479 | |
GATX Corp. | | | 15,325 | | | | 657 | |
Genesee & Wyoming, Inc. Class A (Æ) | | | 7,718 | | | | 416 | |
GrafTech International, Ltd. (Æ) | | | 8,620 | | | | 101 | |
HEICO Corp. | | | 3,886 | | | | 157 | |
Heidrick & Struggles International, Inc. | | | 14,900 | | | | 291 | |
Herman Miller, Inc. | | | 16,034 | | | | 313 | |
HNI Corp. | | | 4,654 | | | | 112 | |
InnerWorkings, Inc. (Æ)(Ñ) | | | 60,850 | | | | 700 | |
Itron, Inc. (Æ) | | | 2,554 | | | | 104 | |
Kansas City Southern | | | 2,952 | | | | 227 | |
KBR, Inc. | | | 6,364 | | | | 215 | |
Knightsbridge Tankers, Ltd. (Æ)(Ñ) | | | 2,589 | | | | 33 | |
Layne Christensen Co. (Æ) | | | 2,855 | | | | 59 | |
Littelfuse, Inc. | | | 2,943 | | | | 184 | |
M/A-COM Technology Solutions Holdings, Inc. (Æ) | | | 21,000 | | | | 416 | |
Manitowoc Co., Inc. (The) | | | 5,493 | | | | 76 | |
MAXIMUS, Inc. | | | 4,115 | | | | 182 | |
Maxwell Technologies, Inc. (Æ)(Ñ) | | | 22,700 | | | | 216 | |
Mettler-Toledo International, Inc. (Æ) | | | 678 | | | | 122 | |
Mistras Group, Inc. (Æ) | | | 37,535 | | | | 881 | |
Monster Worldwide, Inc. (Æ) | | | 8,522 | | | | 74 | |
Navigant Consulting, Inc. (Æ) | | | 6,034 | | | | 84 | |
Navistar International Corp. (Æ) | | | 2,104 | | | | 71 | |
Nordic American Tankers, Ltd. (Ñ) | | | 4,640 | | | | 67 | |
Old Dominion Freight Line, Inc. (Æ) | | | 13,755 | | | | 612 | |
Orbital Sciences Corp. (Æ) | | | 8,277 | | | | 104 | |
Oshkosh Corp. (Æ) | | | 4,357 | | | | 99 | |
Pall Corp. | | | 2,401 | | | | 143 | |
Pentair, Inc. | | | 5,262 | | | | 228 | |
Quanta Services, Inc. (Æ) | | | 4,645 | | | | 103 | |
Robbins & Myers, Inc. | | | 12,526 | | | | 610 | |
Robert Half International, Inc. | | | 4,436 | | | | 132 | |
Shaw Group, Inc. (The) (Æ) | | | 6,330 | | | | 192 | |
SkyWest, Inc. | | | 5,094 | | | | 46 | |
Spirit Aerosystems Holdings, Inc. Class A (Æ) | | | 10,920 | | | | 273 | |
SunOpta, Inc. (Æ) | | | 49,207 | | | | 286 | |
Sykes Enterprises, Inc. (Æ) | | | 14,925 | | | | 237 | |
Taser International, Inc. (Æ) | | | 14,055 | | | | 65 | |
Terex Corp. (Æ) | | | 4,352 | | | | 98 | |
Tetra Tech, Inc. (Æ) | | | 4,369 | | | | 117 | |
Titan International, Inc. (Ñ) | | | 34,949 | | | | 1,010 | |
Toro Co. (The) | | | 11,125 | | | | 795 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
TransDigm Group, Inc. (Æ) | | | 1,720 | | | | 217 | |
Trimas Corp. (Æ) | | | 19,224 | | | | 423 | |
Trimble Navigation, Ltd. (Æ) | | | 2,652 | | | | 144 | |
Trinity Industries, Inc. | | | 3,212 | | | | 95 | |
United Rentals, Inc. (Æ)(Ñ) | | | 22,293 | | | | 1,041 | |
United Stationers, Inc. | | | 21,900 | | | | 621 | |
Wabtec Corp. | | | 8,382 | | | | 652 | |
WESCO International, Inc. (Æ)(Ñ) | | | 3,158 | | | | 210 | |
Westport Innovations, Inc. (Æ)(Ñ) | | | 8,070 | | | | 253 | |
| | | | | | | | |
| | | | | | | 27,629 | |
| | | | | | | | |
| | |
| Technology - 16.9% | | | | | | | | |
AboveNet, Inc. (Æ) | | | 8,475 | | | | 705 | |
Acme Packet, Inc. (Æ)(Ñ) | | | 6,860 | | | | 193 | |
Active Network, Inc. (The) (Æ)(Ñ) | | | 16,510 | | | | 277 | |
Amtech Systems, Inc. (Æ)(Ñ) | | | 4,480 | | | | 31 | |
Anixter International, Inc. (Æ) | | | 6,145 | | | | 421 | |
Ansys, Inc. (Æ) | | | 20,858 | | | | 1,399 | |
AOL, Inc. (Æ) | | | 5,211 | | | | 130 | |
Applied Micro Circuits Corp. (Æ) | | | 13,404 | | | | 75 | |
Ariba, Inc. (Æ) | | | 5,990 | | | | 229 | |
Aruba Networks, Inc. (Æ) | | | 12,810 | | | | 271 | |
Atmel Corp. (Æ) | | | 16,416 | | | | 146 | |
Avago Technologies, Ltd. | | | 10,150 | | | | 350 | |
Avnet, Inc. (Æ) | | | 5,180 | | | | 187 | |
Bottomline Technologies, Inc. (Æ) | | | 13,288 | | | | 313 | |
Brocade Communications Systems, Inc. (Æ) | | | 11,965 | | | | 66 | |
Cavium, Inc. (Æ) | | | 23,200 | | | | 679 | |
CIBER, Inc. (Æ) | | | 92,093 | | | | 383 | |
Cognex Corp. | | | 5,110 | | | | 206 | |
comScore, Inc. (Æ) | | | 45,182 | | | | 900 | |
DealerTrack Holdings, Inc. (Æ) | | | 48,700 | | | | 1,453 | |
Digimarc Corp. | | | 13,040 | | | | 341 | |
Diodes, Inc. (Æ) | | | 19,287 | | | | 430 | |
EarthLink, Inc. | | | 116,203 | | | | 944 | |
Ebix, Inc. (Ñ) | | | 20,200 | | | | 413 | |
Ellie Mae, Inc. (Æ) | | | 41,800 | | | | 542 | |
Emulex Corp. (Æ) | | | 23,825 | | | | 207 | |
Entegris, Inc. (Æ) | | | 48,725 | | | | 431 | |
Equinix, Inc. (Æ) | | | 1,142 | | | | 187 | |
Fabrinet (Æ) | | | 27,342 | | | | 460 | |
Fairchild Semiconductor International, Inc. Class A (Æ) | | | 31,841 | | | | 451 | |
FEI Co. (Æ) | | | 5,700 | | | | 286 | |
Fortinet, Inc. (Æ) | | | 9,660 | | | | 252 | |
Integrated Device Technology, Inc. (Æ) | | | 71,263 | | | | 482 | |
IntraLinks Holdings, Inc. (Æ) | | | 13,825 | | | | 64 | |
IPG Photonics Corp. (Æ)(Ñ) | | | 1,991 | | | | 96 | |
Jabil Circuit, Inc. | | | 7,013 | | | | 164 | |
JDS Uniphase Corp. (Æ) | | | 32,323 | | | | 393 | |
Keynote Systems, Inc. | | | 31,810 | | | | 585 | |
LinkedIn Corp. Class A (Æ) | | | 2,640 | | | | 286 | |
LivePerson, Inc. (Æ) | | | 49,935 | | | | 793 | |
LogMeIn, Inc. (Æ) | | | 24,000 | | | | 864 | |
LSI Corp. (Æ) | | | 55,199 | | | | 444 | |
MEMC Electronic Materials, Inc. (Æ) | | | 24,530 | | | | 88 | |
Mentor Graphics Corp. (Æ) | | | 9,771 | | | | 141 | |
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 185 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
MICROS Systems, Inc. (Æ) | | | 4,213 | | | | 239 | |
Monolithic Power Systems, Inc. (Æ) | | | 6,476 | | | | 134 | |
Monotype Imaging Holdings,
Inc. (Æ) | | | 4,615 | | | | 65 | |
Newport Corp. (Æ) | | | 8,837 | | | | 151 | |
Nuance Communications, Inc. (Æ) | | | 12,910 | | | | 315 | |
NVE Corp. (Æ) | | | 588 | | | | 30 | |
NXP Semiconductor NV (Æ) | | | 7,630 | | | | 197 | |
ON Semiconductor Corp. (Æ) | | | 52,838 | | | | 436 | |
Plexus Corp. (Æ) | | | 24,150 | | | | 782 | |
Progress Software Corp. (Æ) | | | 48,221 | | | | 1,116 | |
Quest Software, Inc. (Æ) | | | 12,825 | | | | 298 | |
RealPage, Inc. (Æ)(Ñ) | | | 18,800 | | | | 341 | |
RF Micro Devices, Inc. (Æ) | | | 19,603 | | | | 85 | |
Riverbed Technology, Inc. (Æ) | | | 21,115 | | | | 417 | |
Rogers Corp. (Æ) | | | 2,134 | | | | 82 | |
SBA Communications Corp.
Class A (Æ) | | | 3,103 | | | | 167 | |
SciQuest, Inc. (Æ) | | | 31,500 | | | | 468 | |
SolarWinds, Inc. (Æ) | | | 4,050 | | | | 190 | |
Spansion, Inc. Class A (Æ) | | | 3,527 | | | | 43 | |
Syntel, Inc. | | | 21,537 | | | | 1,290 | |
Tangoe, Inc. (Æ) | | | 31,100 | | | | 637 | |
Teradyne, Inc. (Æ) | | | 20,910 | | | | 360 | |
TIBCO Software, Inc. (Æ) | | | 20,002 | | | | 658 | |
TTM Technologies, Inc. (Æ) | | | 6,771 | | | | 70 | |
Ultimate Software Group, Inc. (Æ) | | | 7,358 | | | | 568 | |
United Online, Inc. | | | 15,183 | | | | 72 | |
VeriFone Systems, Inc. (Æ) | | | 2,032 | | | | 97 | |
Volterra Semiconductor Corp. (Æ) | | | 5,800 | | | | 191 | |
Xyratex, Ltd. | | | 5,282 | | | | 77 | |
| | | | | | | | |
| | | | | | | 27,334 | |
| | | | | | | | |
| | |
| Utilities - 3.5% | | | | | | | | |
8x8, Inc. (Æ)(Ñ) | | | 91,200 | | | | 377 | |
ALLETE, Inc. | | | 2,886 | | | | 119 | |
Avista Corp. | | | 13,480 | | | | 356 | |
Black Hills Corp. | | | 9,765 | | | | 322 | |
CenterPoint Energy, Inc. | | | 7,554 | | | | 153 | |
Central Vermont Public Service
Corp. (Ñ) | | | 4,320 | | | | 152 | |
Cleco Corp. | | | 18,743 | | | | 765 | |
Connecticut Water Service, Inc. | | | 4,800 | | | | 133 | |
El Paso Electric Co. | | | 4,961 | | | | 152 | |
Empire District Electric Co. (The) | | | 20,118 | | | | 413 | |
Gran Tierra Energy, Inc. (Æ) | | | 17,173 | | | | 111 | |
j2 Global, Inc. | | | 24,260 | | | | 627 | |
National Fuel Gas Co. | | | 3,059 | | | | 145 | |
Neutral Tandem, Inc. (Æ) | | | 4,480 | | | | 52 | |
New Jersey Resources Corp. | | | 3,300 | | | | 143 | |
Northeast Utilities | | | 12,569 | | | | 462 | |
Northwest Natural Gas Co. (Ñ) | | | 2,208 | | | | 101 | |
NorthWestern Corp. | | | 18,790 | | | | 667 | |
NTELOS Holdings Corp. | | | 1,298 | | | | 26 | |
Southwest Gas Corp. | | | 4,202 | | | | 176 | |
Time Warner Telecom, Inc.
Class A (Æ) | | | 9,230 | | | | 201 | |
| | | | | | | | |
| | | | | | | 5,653 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | |
Total Common Stocks
(cost $112,354) | | | | | | | 155,816 | |
| | | | | | | | |
| |
| Short-Term Investments - 3.0% | | | | | |
Russell U.S. Cash Management Fund | | | 4,831,017 | (¥) | | | 4,831 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $4,831) | | | | 4,831 | |
| | | | | | | | |
| |
| Other Securities - 7.8% | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 840,255 | (¥) | | | 856 | |
Russell U.S. Cash Collateral Fund (×) | | | 11,833,025 | (¥) | | | 11,833 | |
| | | | | | | | |
| |
Total Other Securities
(cost $12,673) | | | | 12,689 | |
| | | | | | | | |
| |
Total Investments - 107.2%
(identified cost $129,858) | | | | 173,336 | |
| |
Other Assets and Liabilities,
Net - (7.2%) | | | | (11,710 | ) |
| | | | | | | | |
| |
| Net Assets - 100.0% | | | | 161,626 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 186 | | | 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, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | | | |
S&P Midcap 400 E-Mini Index Futures (CME) | | | 56 | | | | USD | | | | 5,542 | | | | 06/12 | | | | 27 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | | | | 27 | |
| | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | $ | 28,246 | | | $ | — | | | $ | — | | | $ | 28,246 | | | | 17.5 | |
Consumer Staples | | | 5,991 | | | | — | | | | — | | | | 5,991 | | | | 3.7 | |
Energy | | | 5,719 | | | | — | | | | — | | | | 5,719 | | | | 3.5 | |
Financial Services | | | 28,767 | | | | — | | | | — | | | | 28,767 | | | | 17.8 | |
Health Care | | | 17,861 | | | | — | | | | — | | | | 17,861 | | | | 11.1 | |
Materials and Processing | | | 8,616 | | | | — | | | | — | | | | 8,616 | | | | 5.3 | |
Producer Durables | | | 27,629 | | | | — | | | | — | | | | 27,629 | | | | 17.1 | |
Technology | | | 27,334 | | | | — | | | | — | | | | 27,334 | | | | 16.9 | |
Utilities | | | 5,653 | | | | — | | | | — | | | | 5,653 | | | | 3.5 | |
Short-Term Investments | | | — | | | | 4,831 | | | | — | | | | 4,831 | | | | 3.0 | |
Other Securities | | | — | | | | 12,689 | | | | — | | | | 12,689 | | | | 7.8 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 155,816 | | | | 17,520 | | | | — | | | | 173,336 | | | | 107.2 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (7.2 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 27 | | | | — | | | | — | | | | 27 | | | | — | * |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 27 | | | $ | — | | | $ | — | | | $ | 27 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 187 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Fair Value of Derivative Instruments — April 30, 2012 (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* | | $ | 27 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 1,208 | |
| | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (518 | ) |
| | | | |
| * | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the Statements 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.
| | | | |
| | 188 | | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 129,858 | |
Investments, at market*, ** | | | 173,336 | |
Cash (restricted) | | | 410 | |
Receivables: | | | | |
Dividends and interest | | | 22 | |
Dividends from affiliated Russell money market funds | | | 1 | |
Investments sold | | | 900 | |
Fund shares sold | | | 547 | |
From affiliates | | | 5 | |
| | | | |
Total assets | | | 175,221 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 492 | |
Fund shares redeemed | | | 158 | |
Accrued fees to affiliates | | | 155 | |
Other accrued expenses | | | 73 | |
Daily variation margin on futures contracts | | | 44 | |
Payable upon return of securities loaned | | | 12,673 | |
| | | | |
Total liabilities | | | 13,595 | |
| | | | |
| | | | |
Net Assets | | $ | 161,626 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 189 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (80 | ) |
Accumulated net realized gain (loss) | | | (4,911 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 43,478 | |
Futures contracts | | | 27 | |
Shares of beneficial interest | | | 98 | |
Additional paid-in capital | | | 123,014 | |
| | | | |
Net Assets | | $ | 161,626 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 16.19 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 17.18 | |
Class A — Net assets | | $ | 1,169,842 | |
Class A — Shares outstanding ($.01 par value) | | | 72,274 | |
Net asset value per share: Class C(a) | | $ | 14.74 | |
Class C — Net assets | | $ | 7,141,382 | |
Class C — Shares outstanding ($.01 par value) | | | 484,502 | |
Net asset value per share: Class E(a) | | $ | 16.20 | |
Class E — Net assets | | $ | 3,602,937 | |
Class E — Shares outstanding ($.01 par value) | | | 222,452 | |
Net asset value per share: Class S(a) | | $ | 16.60 | |
Class S — Net assets | | $ | 149,711,912 | |
Class S — Shares outstanding ($.01 par value) | | | 9,017,385 | |
Amounts in thousands | | | | |
| | | | |
* Securities on loan included in investments | | $ | 12,551 | |
** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 17,520 | |
| (a) | 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.
| | | | |
| | 190 | | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 801 | |
Dividends from affiliated Russell money market funds | | | 5 | |
Securities lending income | | | 112 | |
| | | | |
Total investment income | | | 918 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 751 | |
Administrative fees | | | 38 | |
Custodian fees | | | 34 | |
Distribution fees - Class A | | | 1 | |
Distribution fees - Class C | | | 26 | |
Transfer agent fees - Class A | | | 1 | |
Transfer agent fees - Class C | | | 6 | |
Transfer agent fees - Class E | | | 3 | |
Transfer agent fees - Class S | | | 128 | |
Professional fees | | | 28 | |
Registration fees | | | 39 | |
Shareholder servicing fees - Class C | | | 9 | |
Shareholder servicing fees - Class E | | | 5 | |
Trustees’ fees | | | 2 | |
Printing fees | | | 4 | |
Miscellaneous | | | 7 | |
| | | | |
Expenses before reductions | | | 1,082 | |
Expense reductions | | | (84 | ) |
| | | | |
Net expenses | | | 998 | |
| | | | |
Net investment income (loss) | | | (80 | ) |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 4,863 | |
Futures contracts | | | 1,208 | |
| | | | |
Net realized gain (loss) | | | 6,071 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 11,981 | |
Futures contracts | | | (518 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 11,463 | |
| | | | |
Net realized and unrealized gain (loss) | | | 17,534 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 17,454 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 191 |
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | (80 | ) | | $ | (578 | ) |
Net realized gain (loss) | | | 6,071 | | | | 12,833 | |
Net change in unrealized appreciation (depreciation) | | | 11,463 | | | | 4,666 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 17,454 | | | | 16,921 | |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (4,353 | ) | | | (17,793 | ) |
Fund Reimbursements | | | — | | | | 482 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 13,101 | | | | (390 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 148,525 | | | | 148,915 | |
| | | | | | | | |
End of period | | $ | 161,626 | | | $ | 148,525 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (80 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 192 | | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
(This page intentionally left blank)
Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 14.47 | | | | (.03 | ) | | | 1.75 | | | | 1.72 | | | | — | | | | — | |
October 31, 2011 | | | 13.06 | | | | (.07 | ) | | | 1.48 | | | | 1.41 | | | | — | | | | — | |
October 31, 2010(5) | | | 12.18 | | | | (.02 | ) | | | .90 | | | | .88 | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 13.23 | | | | (.07 | ) | | | 1.58 | | | | 1.51 | | | | — | | | | — | |
October 31, 2011 | | | 12.02 | | | | (.18 | ) | | | 1.39 | | | | 1.21 | | | | — | | | | — | |
October 31, 2010 | | | 9.62 | | | | (.11 | ) | | | 2.51 | | | | 2.40 | | | | — | | | | — | |
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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 14.48 | | | | (.02 | ) | | | 1.74 | | | | 1.72 | | | | — | | | | — | |
October 31, 2011 | | | 13.06 | | | | (.08 | ) | | | 1.50 | | | | 1.42 | | | | — | | | | — | |
October 31, 2010 | | | 10.38 | | | | (.03 | ) | | | 2.71 | | | | 2.68 | | | | — | | | | — | |
October 31, 2009 | | | 9.37 | | | | — | (f) | | | 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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 14.83 | | | | — | (f) | | | 1.77 | | | | 1.77 | | | | — | | | | — | |
October 31, 2011 | | | 13.34 | | | | (.05 | ) | | | 1.54 | | | | 1.49 | | | | — | | | | — | |
October 31, 2010 | | | 10.58 | | | | — | | | | 2.77 | | | | 2.77 | | | | (.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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 194 | | | Russell Tax-Managed U.S. Mid & Small Cap Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $ Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | % Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | % Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 16.19 | | | | 11.66 | | | | 1,170 | | | | 1.61 | | | | 1.53 | | | | (.34 | ) | | | 23 | |
| | — | | | | 14.47 | | | | 11.03 | | | | 932 | | | | 1.63 | | | | 1.53 | | | | (.48 | ) | | | 46 | |
| | — | | | | 13.06 | | | | 7.23 | | | | 213 | | | | 1.61 | | | | 1.50 | | | | (.44 | ) | | | 57 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 14.74 | | | | 11.25 | | | | 7,141 | | | | 2.36 | | | | 2.25 | | | | (1.06 | ) | | | 23 | |
| | — | | | | 13.23 | | | | 10.23 | | | | 6,571 | | | | 2.36 | | | | 2.25 | | | | (1.33 | ) | | | 46 | |
| | — | | | | 12.02 | | | | 24.95 | | | | 7,170 | | | | 2.34 | | | | 2.24 | | | | (1.02 | ) | | | 57 | |
| | — | | | | 9.62 | | | | 10.57 | | | | 7,033 | | | | 2.36 | | | | 2.21 | | | | (.69 | ) | | | 55 | |
| | (1.22 | ) | | | 8.69 | | | | (36.71 | ) | | | 8,653 | | | | 2.34 | | | | 2.23 | | | | (.63 | ) | | | 72 | |
| | (.20 | ) | | | 15.07 | | | | 15.70 | | | | 14,088 | | | | 2.30 | | | | 2.25 | | | | (.93 | ) | | | 57 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 16.20 | | | | 11.65 | | | | 3,603 | | | | 1.61 | | | | 1.50 | | | | (.30 | ) | | | 23 | |
| | — | | | | 14.48 | | | | 11.10 | | | | 3,443 | | | | 1.61 | | | | 1.50 | | | | (.56 | ) | | | 46 | |
| | — | | | | 13.06 | | | | 25.82 | | | | 3,966 | | | | 1.60 | | | | 1.49 | | | | (.29 | ) | | | 57 | |
| | (.05 | ) | | | 10.38 | | | | 11.48 | | | | 2,794 | | | | 1.60 | | | | 1.46 | | | | (.02 | ) | | | 55 | |
| | (1.22 | ) | | | 9.37 | | | | (36.29 | ) | | | 2,570 | | | | 1.59 | | | | 1.48 | | | | .11 | | | | 72 | |
| | (.20 | ) | | | 16.03 | | | | 16.70 | | | | 3,654 | | | | 1.55 | | | | 1.50 | | | | (.19 | ) | | | 57 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 16.60 | | | | 11.78 | | | | 149,712 | | | | 1.36 | | | | 1.25 | | | | (.05 | ) | | | 23 | |
| | — | | | | 14.83 | | | | 11.32 | | | | 137,579 | | | | 1.36 | | | | 1.25 | | | | (.32 | ) | | | 46 | |
| | (.01 | ) | | | 13.34 | | | | 26.20 | | | | 137,567 | | | | 1.35 | | | | 1.24 | | | | (.03 | ) | | | 57 | |
| | (.08 | ) | | | 10.58 | | | | 11.74 | | | | 119,802 | | | | 1.36 | | | | 1.22 | | | | .29 | | | | 55 | |
| | (1.23 | ) | | | 9.56 | | | | (36.14 | ) | | | 143,039 | | | | 1.34 | | | | 1.23 | | | | .37 | | | | 72 | |
| | (.20 | ) | | | 16.30 | | | | 16.97 | | | | 265,807 | | | | 1.30 | | | | 1.25 | | | | .07 | | | | 57 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | 195 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,064.82 | | | $ | 1,019.00 | |
Expenses Paid During Period* | | $ | 6.06 | | | $ | 5.92 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.18% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,061.45 | | | $ | 1,015.27 | |
Expenses Paid During Period* | | $ | 9.89 | | | $ | 9.67 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.93% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,065.07 | | | $ | 1,019.00 | |
Expenses Paid During Period* | | $ | 6.06 | | | $ | 5.92 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.18% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,066.08 | | | $ | 1,020.24 | |
Expenses Paid During Period* | | $ | 4.78 | | | $ | 4.67 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.93% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 196 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,066.88 | | | $ | 1,020.69 | |
Expenses Paid During Period* | | $ | 4.32 | | | $ | 4.22 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.84% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Global Opportunistic Credit Fund | | 197 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Long-Term Fixed Income Investments - 88.2% | | | | | |
| Argentina - 2.3% | | | | | | | | |
Argentina Boden Bonds
7.000% due 10/03/15 | | | 600 | | | | 543 | |
Argentine Republic Government
International Bond | | | | | | | | |
Series $DSC
8.280% due 12/31/33 | | | 5,066 | | | | 3,483 | |
Series $GDP
Zero coupon due 12/15/35 (Ê) | | | 554 | | | | 66 | |
Series dis
5.830% due 12/31/33 | | ARS | 5,828 | | | | 1,671 | |
Series disEUR
7.820% due 12/31/33 | | EUR | 5,638 | | | | 4,366 | |
Series dscEUR
7.820% due 12/31/33 | | EUR | 7,532 | | | | 5,833 | |
Series EURGDP
6.500% due 12/15/35 (Ê) | | EUR | 8,977 | | | | 1,295 | |
Series NY
3.750% due 03/31/19 | | | 2,660 | | | | 898 | |
Capex SA
10.000% due 03/10/18 (Þ) | | | 646 | | | | 478 | |
City of Buenos Aires Argentina
9.950% due 03/01/17 (Þ) | | | 515 | | | | 454 | |
Empresa Distribuidora Y
Comercializadora Norte
9.750% due 10/25/22 (Þ) | | | 329 | | | | 186 | |
Series REGS
9.750% due 10/25/22 | | | 250 | | | | 141 | |
IRSA Inversiones y
Representaciones SA
11.500% due 07/20/20 (Þ) | | | 500 | | | | 475 | |
| | | | | | | | |
| | | | | | | 19,889 | |
| | | | | | | | |
| | |
| Australia - 0.2% | | | | | | | | |
FMG Resources Pty, Ltd.
6.875% due 04/01/22 (Þ) | | | 1,380 | | | | 1,401 | |
Mirabela Nickel, Ltd.
8.750% due 04/15/18 (Þ) | | | 155 | | | | 114 | |
| | | | | | | | |
| | | | | | | 1,515 | |
| | | | | | | | |
| | |
| Austria - 0.2% | | | | | | | | |
OGX Austria GmbH
8.500% due 06/01/18 (Þ) | | | 805 | | | | 835 | |
8.375% due 04/01/22 (Þ) | | | 445 | | | | 454 | |
| | | | | | | | |
| | | | | | | 1,289 | |
| | | | | | | | |
| | |
| Barbados - 0.1% | | | | | | | | |
Columbus International, Inc.
11.500% due 11/20/14 (Þ) | | | 250 | | | | 271 | |
Series REGS
11.500% due 11/20/14 | | | 347 | | | | 377 | |
| | | | | | | | |
| | | | | | | 648 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Bermuda - 0.4% | | | | | | | | |
Digicel Group, Ltd.
9.125% due 01/15/15 (Þ) | | | 640 | | | | 644 | |
Series REGS
10.500% due 04/15/18 | | | 500 | | | | 548 | |
Digicel, Ltd. | | | | | | | | |
Series REGS
8.250% due 09/01/17 | | | 410 | | | | 427 | |
Qtel International Finance, Ltd.
4.750% due 02/16/21 (Þ) | | | 264 | | | | 276 | |
5.000% due 10/19/25 (Þ) | | | 895 | | | | 915 | |
Series REGS
4.750% due 02/16/21 | | | 700 | | | | 730 | |
5.000% due 10/19/25 | | | 200 | | | | 204 | |
| | | | | | | | |
| | | | | | | 3,744 | |
| | | | | | | | |
| | |
| Brazil - 1.7% | | | | | | | | |
Banco Cruzeiro do Sul SA
8.875% due 09/22/20 (Þ) | | | 691 | | | | 483 | |
Series REGS
8.875% due 09/22/20 | | | 341 | | | | 239 | |
BM&FBovespa SA
5.500% due 07/16/20 (Þ) | | | 299 | | | | 321 | |
Series REGS
5.500% due 07/16/20 | | | 200 | | | | 215 | |
BR Malls International Finance, Ltd.
8.500% due 01/29/49 (ƒ)(Þ) | | | 165 | | | | 174 | |
BR Properties SA
Series REGS
9.000% due 10/29/49 (ƒ) | | | 282 | | | | 295 | |
Brazilian Government International Bond
5.875% due 01/15/19 | | | 1,395 | | | | 1,682 | |
4.875% due 01/22/21 | | | 1,031 | | | | 1,184 | |
8.875% due 04/15/24 | | | 1,063 | | | | 1,634 | |
8.750% due 02/04/25 | | | 558 | | | | 854 | |
10.125% due 05/15/27 | | | 512 | | | | 863 | |
8.250% due 01/20/34 | | | 1,932 | | | | 2,985 | |
7.125% due 01/20/37 | | | 480 | | | | 676 | |
Globo Comunicacao e Participacoes SA
Series REGS
9.375% due 07/20/15 (ƒ) | | | 233 | | | | 249 | |
Hypermarcas SA
6.500% due 04/20/21 (Þ) | | | 855 | | | | 817 | |
Itau Unibanco Holding SA/Cayman Island
5.650% due 03/19/22 (Þ) | | | 358 | | | | 360 | |
NET Servicos de Comunicacao SA
7.500% due 01/27/20 | | | 432 | | | | 496 | |
Telemar Norte Leste SA
5.500% due 10/23/20 (Þ) | | | 706 | | | | 732 | |
| | | | | | | | |
| | | | | | | 14,259 | |
| | | | | | | | |
| | |
| Canada - 1.0% | | | | | | | | |
Cascades, Inc.
7.750% due 12/15/17 | | | 1,935 | | | | 1,916 | |
Harvest Operations Corp.
6.875% due 10/01/17 (Þ) | | | 1,450 | | | | 1,530 | |
| | | | |
| | 198 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
National Money Mart Co.
10.375% due 12/15/16 | | | 1,800 | | | | 2,020 | |
Novelis, Inc.
8.375% due 12/15/17 | | | 855 | | | | 924 | |
8.750% due 12/15/20 | | | 1,895 | | | | 2,089 | |
| | | | | | | | |
| | | | | | | 8,479 | |
| | | | | | | | |
| | |
| Cayman Islands - 1.6% | | | | | | | | |
Braskem Finance, Ltd.
7.375% due 12/31/49 (ƒ)(Þ) | | | 350 | | | | 351 | |
China Liansu Group Holdings, Ltd.
7.875% due 05/13/16 (Þ) | | | 456 | | | | 432 | |
Countrywide Holdings, Ltd.
Series REGS
10.000% due 05/08/18 | | GBP | 1,515 | | | | 2,496 | |
DP World Sukuk Ltd.
6.250% due 07/02/17 | | | 750 | | | | 795 | |
Dubai Holding Commercial Operations MTN, Ltd.
4.750% due 01/30/14 | | EUR | 150 | | | | 185 | |
Series EMtN
6.000% due 02/01/17 | | GBP | 650 | | | | 875 | |
Evergrande Real Estate Group, Ltd.
Series REGS
13.000% due 01/27/15 | | | 195 | | | | 196 | |
General Shopping Finance, Ltd.
10.000% due 11/09/15 (ƒ)(Þ) | | | 663 | | | | 687 | |
Series REGS
10.000% due 12/29/49 (ƒ) | | | 100 | | | | 99 | |
Grupo Aval, Ltd.
5.250% due 02/01/17 (Þ) | | | 400 | | | | 416 | |
Gruposura Finance
5.700% due 05/18/21 (Þ) | | | 761 | | | | 794 | |
Hutchison Whampoa International 10, Ltd.
Series REGS
6.000% due 12/29/49 (ƒ) | | | 511 | | | | 520 | |
Hutchison Whampoa International 11, Ltd.
4.625% due 01/13/22 (Þ) | | | 400 | | | | 415 | |
IPIC GMTN, Ltd.
3.750% due 03/01/17 (Þ) | | | 450 | | | | 457 | |
6.875% due 11/01/41 (Þ) | | | 200 | | | | 214 | |
Kaisa Group Holdings, Ltd.
Series REGS
13.500% due 04/28/15 | | | 206 | | | | 199 | |
MAF SUKUK, Ltd.
5.850% due 02/07/17 | | | 500 | | | | 521 | |
MIE Holdings Corp.
9.750% due 05/12/16 (Þ) | | | 406 | | | | 404 | |
Minerva Overseas II, Ltd.
10.875% due 11/15/19 (Þ) | | | 300 | | | | 309 | |
Mongolian Mining Corp.
Series 144a
8.875% due 03/29/17 (Þ) | | | 333 | | | | 333 | |
Odebrecht Drilling Norbe VIII/IX, Ltd.
6.350% due 06/30/21 (Þ)
Series REGS | | | 573 | | | | 610 | |
6.350% due 06/30/21 | | | 372 | | | | 397 | |
| | | | | | | | |
| | | Principal
Amount ($) or
Shares | | | Market
Value
$ | |
Odebrecht Finance, Ltd.
Series REGS
7.000% due 04/21/20 | | | 150 | | | | 167 | |
Petrobras International Finance Co. - Pifco
2.875% due 02/06/15 | | | 177 | | | | 181 | |
5.375% due 01/27/21 | | | 130 | | | | 142 | |
Schahin II Finance Co. SPV, Ltd.
5.875% due 09/25/22 (Þ) | | | 590 | | | | 590 | |
Tencent Holdings, Ltd.
4.625% due 12/12/16 (Þ) | | | 200 | | | | 203 | |
Texhong Textile Group, Ltd.
7.625% due 01/19/16 (Þ)
Series REGS | | | 202 | | | | 170 | |
7.625% due 01/19/16 | | | 208 | | | | 176 | |
| | | | | | | | |
| | | | | | | 13,334 | |
| | | | | | | | |
| | |
| Chile - 0.4% | | | | | | | | |
Banco del Estado de Chile
3.875% due 02/08/22 (Þ) | | | 1,171 | | | | 1,165 | |
Cencosud SA
5.500% due 01/20/21 (Þ) | | | 500 | | | | 528 | |
Corp. Nacional del Cobre de Chile
Series REGS
6.150% due 10/24/36 | | | 1,234 | | | | 1,518 | |
| | | | | | | | |
| | | | | | | 3,211 | |
| | | | | | | | |
| | |
| Colombia - 2.1% | | | | | | | | |
Bogota Distrito Capital
Series REGS
9.750% due 07/26/28 | | COP | 4,000,000 | | | | 3,041 | |
Colombia Government International Bond
7.375% due 01/27/17 | | | 1,271 | | | | 1,574 | |
7.750% due 04/14/21 | | COP | 1,391,000 | | | | 969 | |
4.375% due 07/12/21 | | | 980 | | | | 1,083 | |
8.125% due 05/21/24 | | | 715 | | | | 1,022 | |
7.375% due 09/18/37 | | | 3,542 | | | | 5,088 | |
6.125% due 01/18/41 | | | 3,697 | | | | 4,669 | |
Empresa de Energia de Bogota SA
6.125% due 11/10/21 (Þ) | | | 500 | | | | 527 | |
Transportadora de Gas Internacional SA ESP
5.700% due 03/20/22 (Þ) | | | 300 | | | | 309 | |
| | | | | | | | |
| | | | | | | 18,282 | |
| | | | | | | | |
| | |
| Croatia - 0.6% | | | | | | | | |
Croatia Government International Bond
6.250% due 04/27/17 (Þ) | | | 521 | | | | 527 | |
6.375% due 03/24/21 (Þ) | | | 2,926 | | | | 2,857 | |
Series REGS
6.625% due 07/14/20 | | | 1,778 | | | | 1,777 | |
| | | | | | | | |
| | | | | | | 5,161 | |
| | | | | | | | |
| | |
| Russell Global Opportunistic Credit Fund | | 199 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Cyprus - 0.1% | | | | | | | | |
Mriya Agro Holding PLC
10.950% due 03/30/16 (Þ) | | | 610 | | | | 554 | |
| | | | | | | | |
| | |
| Denmark - 0.2% | | | | | | | | |
ISS A/S
Series REGS
8.875% due 05/15/16 | | EUR | 1,600 | | | | 2,134 | |
| | | | | | | | |
| | |
| Dominican Republic - 0.0% | | | | | | | | |
Capital Cana SA
10.000% due 04/30/16 (Þ) | | | 250 | | | | 50 | |
| | | | | | | | |
| | |
| El Salvador - 0.4% | | | | | | | | |
El Salvador Government International Bond
Series REGS
7.375% due 12/01/19 | | | 2,157 | | | | 2,357 | |
7.650% due 06/15/35 | | | 700 | | | | 726 | |
Republic of El Salvador
7.750% due 01/24/23 | | | 311 | | | | 341 | |
| | | | | | | | |
| | | | | | | 3,424 | |
| | | | | | | | |
| | |
| France - 0.9% | | | | | | | | |
Cie Generale de Geophysique - Veritas
6.500% due 06/01/21 | | | 2,000 | | | | 2,060 | |
Faurecia
9.375% due 12/15/16 | | EUR | 750 | | | | 1,088 | |
Lafarge SA
6.750% due 12/16/19 | | EUR | 1,615 | | | | 2,074 | |
Nexans SA
5.750% due 05/02/17 | | EUR | 500 | | | | 663 | |
Rexel SA
7.000% due 12/17/18 | | EUR | 1,540 | | | | 2,135 | |
| | | | | | | | |
| | | | | | | 8,020 | |
| | | | | | | | |
| | |
| Germany - 1.1% | | | | | | | | |
ALBA Group PLC & Co. KG
8.000% due 05/15/18 (Þ) | | EUR | 1,790 | | | | 2,458 | |
Deutsche Bank AG/London
9.375% due 02/13/18 (Þ) | | | 1,604 | | | | 1,611 | |
KUKA AG
Series REGS
8.750% due 11/15/17 | | EUR | 1,680 | | | | 2,368 | |
Styrolution Group GmbH
7.625% due 05/15/16 (Þ) | | EUR | 930 | | | | 1,114 | |
Unitymedia GmbH
Series REGS
9.625% due 12/01/19 | | EUR | 1,575 | | | | 2,231 | |
| | | | | | | | |
| | | | | | | 9,782 | |
| | | | | | | | |
| | |
| Ghana - 0.1% | | | | | | | | |
Republic of Ghana
Series REGS
8.500% due 10/04/17 | | | 787 | | | | 895 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Hungary - 0.5% | | | | | | | | |
Hungary Government International Bond
4.500% due 01/29/14 | | EUR | 724 | | | | 927 | |
5.500% due 05/06/14 | | GBP | 61 | | | | 94 | |
5.000% due 03/30/16 | | GBP | 209 | | | | 292 | |
3.500% due 07/18/16 | | EUR | 1,499 | | | | 1,708 | |
4.375% due 07/04/17 | | EUR | 872 | | | | 1,003 | |
5.750% due 06/11/18 | | EUR | 293 | | | | 347 | |
| | | | | | | | |
| | | | | | | 4,371 | |
| | | | | | | | |
| | |
| India - 0.1% | | | | | | | | |
Axis Bank
7.125% due 06/28/22 | | | 126 | | | | 117 | |
Bank of India
6.994% due 03/29/49 (ƒ) | | | 137 | | | | 125 | |
ICICI Bank, Ltd.
5.750% due 11/16/20 (Þ) | | | 375 | | | | 370 | |
| | | | | | | | |
| | | | | | | 612 | |
| | | | | | | | |
| | |
| Indonesia - 1.3% | | | | | | | | |
Adaro Indonesia PT
Series REGS
7.625% due 10/22/19 | | | 396 | | | | 431 | |
Berau Coal Energy Tbk PT
7.250% due 03/13/17 (Þ) | | | 266 | | | | 265 | |
Republic of Indonesia
6.875% due 01/17/18 | | | 3,023 | | | | 3,571 | |
11.625% due 03/04/19 | | | 3,242 | | | | 4,782 | |
5.875% due 03/13/20 | | | 1,643 | | | | 1,873 | |
| | | | | | | | |
| | | | | | | 10,922 | |
| | | | | | | | |
| | |
| Iraq - 1.2% | | | | | | | | |
Republic of Iraq
Series REGS
5.800% due 01/15/28 | | | 12,219 | | | | 10,157 | |
| | | | | | | | |
| | |
| Ireland - 1.0% | | | | | | | | |
AK Transneft OJSC Via TransCapitalInvest, Ltd.
Series REGS
8.700% due 08/07/18 | | | 100 | | | | 124 | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC
7.875% due 09/25/17 (Þ) | | | 372 | | | | 383 | |
Ardagh Packaging Finance PLC
Series 144a
7.375% due 10/15/17 (Þ) | | EUR | 690 | | | | 963 | |
Series REGS
9.250% due 10/15/20 | | EUR | 1,650 | | | | 2,250 | |
Metalloinvest Finance, Ltd.
6.500% due 07/21/16 (Þ) | | | 508 | | | | 505 | |
Novatek Finance, Ltd.
6.604% due 02/03/21 (Þ) | | | 953 | | | | 1,042 | |
Series REGS
5.326% due 02/03/16 | | | 235 | | | | 245 | |
SCF Capital, Ltd.
5.375% due 10/27/17 (Þ) | | | 661 | | | | 635 | |
| | | | |
| | 200 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Smurfit Kappa Acquisitions
Series REGS
7.750% due 11/15/19 | | EUR | 1,505 | | | | 2,132 | |
Vimpel Communications Via VIP Finance Ireland, Ltd. OJSC
7.748% due 02/02/21 (Þ) | | | 528 | | | | 525 | |
| | | | | | | | |
| | | | | | | 8,804 | |
| | | | | | | | |
| | |
| Jersey - 0.1% | | | | | | | | |
West China Cement, Ltd.
7.500% due 01/25/16 (Þ) | | | 411 | | | | 347 | |
Series REGS
7.500% due 01/25/16 | | | 268 | | | | 227 | |
| | | | | | | | |
| | | | | | | 574 | |
| | | | | | | | |
| | |
| Kazakhstan - 1.4% | | | | | | | | |
BTA Bank JSC
10.750% due 07/01/18 (Þ) | | | 783 | | | | 157 | |
Zero coupon due 06/30/20 (Þ) | | | 1,427 | | | | 121 | |
Series REGS
10.750% due 07/01/18 | | | 1,348 | | | | 270 | |
KazMunayGas National Co.
9.125% due 07/02/18 (Þ) | | | 408 | | | | 509 | |
7.000% due 05/05/20 (Þ) | | | 1,103 | | | | 1,264 | |
6.375% due 04/09/21 (Þ) | | | 1,355 | | | | 1,509 | |
Series REGS
8.375% due 07/02/13 | | | 2,432 | | | | 2,575 | |
11.750% due 01/23/15 | | | 1,550 | | | | 1,883 | |
7.000% due 05/05/20 | | | 2,364 | | | | 2,710 | |
Zhaikmunai LLP
10.500% due 10/19/15 (Þ) | | | 213 | | | | 219 | |
Series REGS
10.500% due 10/19/15 | | | 430 | | | | 443 | |
| | | | | | | | |
| | | | | | | 11,660 | |
| | | | | | | | |
| | |
| Lithuania - 0.7% | | | | | | | | |
Lithuania Government International Bond
6.625% due 02/01/22 (Þ) | | | 1,423 | | | | 1,594 | |
Series REGS
7.375% due 02/11/20 | | | 166 | | | | 195 | |
6.125% due 03/09/21 | | | 3,590 | | | | 3,895 | |
| | | | | | | | |
| | | | | | | 5,684 | |
| | | | | | | | |
| | |
| Luxembourg - 4.2% | | | | | | | | |
Aguila 3 SA
7.875% due 01/31/18 (Þ) | | | 1,395 | | | | 1,461 | |
Series REGS
7.875% due 01/31/18 | | CHF | 850 | | | | 979 | |
ALROSA Finance SA
Series REGS
7.750% due 11/03/20 | | | 200 | | | | 213 | |
APERAM
7.750% due 04/01/18 (Þ) | | | 2,515 | | | | 2,402 | |
Capsugel FinanceCo SCA
9.875% due 08/01/19 (Þ) | | EUR | 1,800 | | | | 2,621 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
ConvaTec Healthcare E SA
7.375% due 12/15/17 (Þ) | | EUR | 635 | | | | 870 | |
Series REGS
7.375% due 12/15/17 | | EUR | 1,140 | | | | 1,562 | |
Evraz Group SA
7.400% due 04/24/17 (Å) | | | 300 | | | | 302 | |
6.750% due 04/27/18 (Þ) | | | 600 | | | | 577 | |
Expro Finance Luxembourg SCA
8.500% due 12/15/16 (Þ) | | | 2,650 | | | | 2,570 | |
Gategroup Finance Luxembourg SA
6.750% due 03/01/19 (Þ) | | EUR | 1,610 | | | | 2,118 | |
Greif Luxembourg Finance SCA
7.375% due 07/15/21 (Þ) | | EUR | 700 | | | | 972 | |
Intelsat Jackson Holdings SA
7.250% due 04/01/19 | | | 65 | | | | 68 | |
7.250% due 10/15/20 | | | 2,500 | | | | 2,613 | |
7.250% due 10/15/20 (Å) | | | 1,115 | | | | 1,162 | |
KION Finance SA
Series REGS
7.875% due 04/15/18 | | EUR | 2,000 | | | | 2,568 | |
MHP SA
10.250% due 04/29/15 (Þ) | | | 150 | | | | 147 | |
Series REGS
10.250% due 04/29/15 | | | 200 | | | | 195 | |
Ontex IV SA
Series 144a
9.000% due 04/15/19 (Þ) | | EUR | 1,050 | | | | 1,063 | |
Series REGS
7.500% due 04/15/18 | | EUR | 600 | | | | 754 | |
9.000% due 04/15/19 | | EUR | 450 | | | | 456 | |
Picard Bondco SA
Series REGS
9.000% due 10/01/18 | | EUR | 1,520 | | | | 2,163 | �� |
Severstal OAO Via Steel Capital SA
6.700% due 10/25/17 (Þ) | | | 200 | | | | 201 | |
Sunrise Communications Holdings SA
8.500% due 12/31/18 (Þ) | | EUR | 1,730 | | | | 2,416 | |
Telenet Finance III Luxembourg SCA
Series REGS
6.625% due 02/15/21 | | EUR | 500 | | | | 655 | |
Telenet Finance Luxembourg SCA
Series REGS
6.375% due 11/15/20 | | EUR | 485 | | | | 636 | |
VTB Bank OJSC Via VTB Capital SA
Series REGS
6.315% due 02/22/18 | | | 696 | | | | 710 | |
6.250% due 06/30/35 | | | 326 | | | | 337 | |
Wind Acquisition Finance SA
Series REGS
11.750% due 07/15/17 | | EUR | 1,700 | | | | 2,098 | |
Zinc Capital SA
Series REGS
8.875% due 05/15/18 | | EUR | 1,045 | | | | 1,203 | |
| | | | | | | | |
| | | | | | | 36,092 | |
| | | | | | | | |
| | |
| Russell Global Opportunistic Credit Fund | | 201 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Malaysia - 1.0% | | | | | | | | |
Penerbahgan Malaysia Berhad
5.625% due 03/15/16 | | | 3,500 | | | | 3,927 | |
Petronas Capital, Ltd.
Series REGS
7.875% due 05/22/22 | | | 3,145 | | | | 4,291 | |
Petronas Global Sukuk, Ltd.
4.250% due 08/12/14 (Þ) | | | 616 | | | | 649 | |
| | | | | | | | |
| | | | | | | 8,867 | |
| | | | | | | | |
| | |
| Mexico - 3.2% | | | | | | | | |
America Movil SAB de CV
2.375% due 09/08/16 | | | 1,712 | | | | 1,747 | |
Axtel SAB de CV
7.625% due 02/01/17 (Þ) | | | 240 | | | | 183 | |
Series REGS
9.000% due 09/22/19 | | | 365 | | | | 285 | |
Bank of New York Mellon SA Institucion de Banca Multiple
9.625% due 05/02/21 (Þ) | | | 1,004 | | | | 933 | |
BBVA Bancomer SA
Series REGS
4.500% due 03/10/16 | | | 208 | | | | 208 | |
Cemex SAB de CV
5.470% due 09/30/15 (Ê)(Þ) | | | 655 | | | | 585 | |
9.000% due 01/11/18 (Þ) | | | 287 | | | | 268 | |
Grupo Bimbo SAB de CV
4.875% due 06/30/20 (Þ) | | | 131 | | | | 141 | |
4.500% due 01/25/22 (Þ) | | | 200 | | | | 208 | |
Grupo Televisa SAB
6.000% due 05/15/18 | | | 100 | | | | 117 | |
Mexican Bonos
Series M
8.500% due 05/31/29 | | MXN | 5,600 | | | | 496 | |
Series M
6.500% due 06/10/21 | | MXN | 41,470 | | | | 3,263 | |
Mexico Government International Bond
8.300% due 08/15/31 | | | 2,047 | | | | 3,122 | |
6.050% due 01/11/40 | | | 2,932 | | | | 3,658 | |
5.750% due 10/12/10 | | | 5,270 | | | | 5,744 | |
Series GMTN
5.950% due 03/19/19 | | | 2,602 | | | | 3,170 | |
Series MTNA
7.500% due 04/08/33 | | | 169 | | | | 242 | |
6.750% due 09/27/34 | | | 2,265 | | | | 3,018 | |
| | | | | | | | |
| | | | | | | 27,388 | |
| | | | | | | | |
| | |
| Netherlands - 2.7% | | | | | | | | |
Carlson Wagonlit BV
Series REGS
6.465% due 05/01/15 (Ê) | | EUR | 1,800 | | | | 2,359 | |
Elster Finance BV
Series REGS
6.250% due 04/15/18 | | EUR | 800 | | | | 1,095 | |
HeidelbergCement Finance BV
7.500% due 04/03/20 | | EUR | 1,690 | | | | 2,355 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Indosat Palapa Co. BV
7.375% due 07/29/20 (Þ) | | | 150 | | | | 165 | |
InterXion Holding NV
Series REGS
9.500% due 02/12/17 | | EUR | 360 | | | | 522 | |
Listrindo Capital BV
6.950% due 02/21/19 (Þ) | | | 404 | | | | 420 | |
Metinvest BV
8.750% due 02/14/18 (Þ) | | | 805 | | | | 745 | |
Myriad International Holding BV
6.375% due 07/28/17 (Þ)
| | | 381 | | | | 421 | |
Series REGS
6.375% due 07/28/17 | | | 770 | | | | 851 | |
OI European Group BV
Series REGS
6.750% due 09/15/20 | | EUR | 1,535 | | | | 2,164 | |
Phoenix PIB Finance BV
Series REGS
9.625% due 07/15/14 | | EUR | 410 | | | | 592 | |
Refresco Group BV
Series 144a
7.375% due 05/15/18 (Þ) | | EUR | 1,760 | | | | 2,120 | |
Schaeffler Finance BV
8.500% due 02/15/19 (Þ) | | | 1,200 | | | | 1,287 | |
Series REGS
8.750% due 02/15/19 | | EUR | 700 | | | | 982 | |
Sensata Technologies BV
6.500% due 05/15/19 (Þ) | | | 2,575 | | | | 2,684 | |
UPC Holding BV
Series REGS
8.375% due 08/15/20 | | EUR | 1,675 | | | | 2,256 | |
VimpelCom Holdings BV
Series REGS
6.255% due 03/01/17 | | | 500 | | | | 499 | |
Ziggo Bond Co. BV
Series REGS
8.000% due 05/15/18 | | EUR | 1,395 | | | | 1,990 | |
| | | | | | | | |
| | | | | | | 23,507 | |
| | | | | | | | |
| | |
| Panama - 1.5% | | | | | | | | |
Panama Government International Bond
5.200% due 01/30/20 | | | 4,100 | | | | 4,766 | |
7.125% due 01/29/26 | | | 116 | | | | 157 | |
8.875% due 09/30/27 | | | 236 | | | | 370 | |
9.375% due 04/01/29 | | | 4,239 | | | | 6,931 | |
Series 2006-
6.700% due 01/26/36 | | | 850 | | | | 1,140 | |
| | | | | | | | |
| | | | | | | 13,364 | |
| | | | | | | | |
| | |
| Peru - 0.4% | | | | | | | | |
Banco de Credito del Peru
5.375% due 09/16/20 (Þ) | | | 369 | | | | 377 | |
Peruvian Government International Bond
8.375% due 05/03/16 | | | 672 | | | | 838 | |
8.750% due 11/21/33 | | | 1,505 | | | | 2,412 | |
Volcan Cia Minera SAA
5.375% due 02/02/22 (Þ) | | | 200 | | | | 208 | |
| | | | | | | | |
| | | | | | | 3,835 | |
| | | | | | | | |
| | | | |
| | 202 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Philippines - 1.0% | | | | | | | | |
Philippine Government International Bond
4.000% due 01/15/21 | | | 6,036 | | | | 6,368 | |
9.500% due 02/02/30 | | | 402 | | | | 639 | |
6.375% due 10/23/34 | | | 1,064 | | | | 1,321 | |
| | | | | | | | |
| | | | | | | 8,328 | |
| | | | | | | | |
| | |
| Poland - 1.9% | | | | | | | | |
Poland Government International Bond
6.375% due 07/15/19 | | | 6,331 | | | | 7,439 | |
4.000% due 03/23/21 | | EUR | 652 | | | | 865 | |
5.125% due 04/21/21 | | | 3,211 | | | | 3,471 | |
5.000% due 03/23/22 | | | 4,412 | | | | 4,721 | |
| | | | | | | | |
| | | | | | | 16,496 | |
| | | | | | | | |
| | |
| Puerto Rico - 0.2% | | | | | | | | |
Warner Chilcott Co. LLC / Warner Chilcott Finance LLC
7.750% due 09/15/18 | | | 1,865 | | | | 2,038 | |
| | | | | | | | |
| | |
| Qatar - 0.8% | | | | | | | | |
Qatar Government International Bond
5.250% due 01/20/20 (Þ) | | | 1,486 | | | | 1,663 | |
Series REGS
6.550% due 04/09/19 | | | 1,397 | | | | 1,678 | |
5.250% due 01/20/20 | | | 2,332 | | | | 2,609 | |
6.400% due 01/20/40 | | | 836 | | | | 1,000 | |
| | | | | | | | |
| | | | | | | 6,950 | |
| | | | | | | | |
| | |
| Romania - 0.0% | | | | | | | | |
Romanian Government International Bond
6.750% due 02/07/22 (Þ) | | | 342 | | | | 359 | |
| | | | | | | | |
| | |
| Russia - 3.1% | | | | | | | | |
Russian Foreign Bond
Series REGS
7.500% due 03/31/30 | | | 5,761 | | | | 6,907 | |
Russian Foreign Bond - Eurobond
5.000% due 04/29/20 (Þ) | | | 1,200 | | | | 1,297 | |
5.625% due 04/04/42 (Þ) | | | 1,000 | | | | 1,059 | |
Series REGS
11.000% due 07/24/18 | | | 128 | | | | 181 | |
5.000% due 04/29/20 | | | 4,300 | | | | 4,649 | |
7.500% due 03/31/30 | | | 10,328 | | | | 12,381 | |
| | | | | | | | |
| | | | | | | 26,474 | |
| | | | | | �� | | |
| | |
| Singapore - 0.2% | | | | | | | | |
Bakrie Telecom Pte, Ltd.
Series REGS
11.500% due 05/07/15 | | | 519 | | | | 402 | |
Bumi Capital Pte, Ltd.
Series REGS
12.000% due 11/10/16 | | | 460 | | | | 506 | |
Bumi Investment Pte, Ltd.
10.750% due 10/06/17 (Þ) | | | 243 | | | | 261 | |
STATS ChipPAC, Ltd.
5.375% due 03/31/16 (Þ) | | | 175 | | | | 179 | |
| | | | | | | | |
| | | | | | | 1,348 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| South Africa - 1.2% | | | | | | | | |
South Africa Government International Bond
6.875% due 05/27/19 | | | 860 | | | | 1,053 | |
5.500% due 03/09/20 | | | 3,947 | | | | 4,490 | |
5.875% due 05/30/22 | | | 1,304 | | | | 1,522 | |
4.665% due 01/17/24 | | | 1,058 | | | | 1,108 | |
6.250% due 03/08/41 | | | 1,823 | | | | 2,190 | |
| | | | | | | | |
| | | | | | | 10,363 | |
| | | | | | | | |
| | |
| South Korea - 0.2% | | | | | | | | |
Export-Import Bank of Korea
4.375% due 09/15/21 | | | 675 | | | | 687 | |
Korea Gas Corp.
6.250% due 01/20/42 (Þ) | | | 249 | | | | 286 | |
Korea Hydro & Nuclear Power Co., Ltd.
Series REGS
4.750% due 07/13/21 | | | 500 | | | | 530 | |
| | | | | | | | |
| | | | | | | 1,503 | |
| | | | | | | | |
| | |
| Spain - 0.8% | | | | | | | | |
Abengoa Finance SAU
8.875% due 11/01/17 (Þ) | | | 1,950 | | | | 1,862 | |
Abengoa SA
8.500% due 03/31/16 | | EUR | 450 | | | | 578 | |
Cemex Espana Luxembourg Series REGS
8.875% due 05/12/17 | | EUR | 51 | | | | 59 | |
Inaer Aviation Finance, Ltd. Series REGS
9.500% due 08/01/17 | | EUR | 1,425 | | | | 1,650 | |
Obrascon Huarte Lain SA
7.375% due 04/28/15 | | EUR | 1,750 | | | | 2,409 | |
| | | | | | | | |
| | | | | | | 6,558 | |
| | | | | | | | |
| | |
| Sweden - 0.3% | | | | | | | | |
Stena AB Series REGS
6.125% due 02/01/17 | | EUR | 1,850 | | | | 2,351 | |
| | | | | | | | |
| | |
| Switzerland - 0.2% | | | | | | | | |
Credit Suisse
7.600% due 04/14/21 | | RUB | 50,100 | | | | 1,681 | |
| | | | | | | | |
| | |
| Turkey - 1.7% | | | | | | | | |
Turkey Government International Bond
7.250% due 03/15/15 | | | 1,000 | | | | 1,113 | |
6.750% due 04/03/18 | | | 2,095 | | | | 2,388 | |
7.500% due 11/07/19 | | | 2,282 | | | | 2,739 | |
7.000% due 06/05/20 | | | 3,297 | | | | 3,858 | |
5.625% due 03/30/21 | | | 319 | | | | 341 | |
5.125% due 03/25/22 | | | 1,305 | | | | 1,329 | |
6.250% due 09/26/22 | | | 2,081 | | | | 2,305 | |
6.875% due 03/17/36 | | | 583 | | | | 660 | |
Yuksel Insaat AS
Series REGS
9.500% due 11/10/15 | | | 317 | | | | 273 | |
| | | | | | | | |
| | | | | | | 15,006 | |
| | | | | | | | |
| | |
| Russell Global Opportunistic Credit Fund | | 203 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Ukraine - 0.6% | | | | | | | | |
Ukraine Government International Bond
6.875% due 09/23/15 (Þ) | | | 1,425 | | | | 1,350 | |
6.250% due 06/17/16 (Þ) | | | 642 | | | | 591 | |
Series REGS
7.650% due 06/11/13 | | | 1,796 | | | | 1,778 | |
6.875% due 09/23/15 | | | 828 | | | | 784 | |
6.250% due 06/17/16 | | | 293 | | | | 270 | |
6.750% due 11/14/17 | | | 200 | | | | 179 | |
7.750% due 09/23/20 | | | 593 | | | | 537 | |
| | | | | | | | |
| | | | | | | 5,489 | |
| | | | | | | | |
|
| United Arab Emirates - 0.1% | |
Dolphin Energy, Ltd.
5.500% due 12/15/21 (Þ) | | | 200 | | | | 213 | |
Series REGS
5.888% due 06/15/19 | | | 253 | | | | 275 | |
DP World, Ltd.
Series REGS
6.850% due 07/02/37 | | | 560 | | | | 539 | |
| | | | | | | | |
| | | | | | | 1,027 | |
| | | | | | | | |
|
| United Kingdom - 2.4% | |
Afren PLC
10.250% due 04/08/19 (Þ) | | | 400 | | | | 419 | |
Anglian Water Osprey Financing PLC
7.000% due 01/31/18 | | GBP | 1,515 | | | | 2,502 | |
British Airways PLC
8.750% due 08/23/16 | | GBP | 785 | | | | 1,296 | |
EC Finance PLC
9.750% due 08/01/17 (Þ) | | EUR | 910 | | | | 1,217 | |
Series REGS
9.750% due 08/01/17 | | EUR | 120 | | | | 160 | |
Eco-Bat Finance PLC
7.750% due 02/15/17 (Þ) | | EUR | 1,695 | | | | 2,221 | |
Ferrexpo Finance PLC
7.875% due 04/07/16 (Þ) | | | 467 | | | | 435 | |
Ineos Finance PLC
8.375% due 02/15/19 (Þ) | | | 375 | | | | 402 | |
Ineos Group Holdings, Ltd.
Series REGS
7.875% due 02/15/16 | | EUR | 950 | | | | 1,157 | |
Kerling PLC
Series REGS
10.625% due 02/01/17 | | EUR | 1,210 | | | | 1,558 | |
Ladbrokes Group Finance PLC
7.625% due 03/05/17 | | GBP | 1,475 | | | | 2,537 | |
Phones4u Finance PLC
9.500% due 04/01/18 (Þ) | | GBP | 1,100 | | | | 1,607 | |
Series REGS
9.500% due 04/01/18 | | GBP | 520 | | | | 759 | |
Priory Group No. 3 PLC
8.875% due 02/15/19 (Þ) | | GBP | 760 | | | | 1,073 | |
Series REGS
7.000% due 02/15/18 | | GBP | 100 | | | | 153 | |
8.875% due 02/15/19 | | GBP | 800 | | | | 1,129 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Ukreximbank Via Biz Finance PLC
Series REGS
8.375% due 04/27/15 | | | 1,056 | | | | 985 | |
Vedanta Resources PLC
8.250% due 06/07/21 (Þ) | | | 388 | | | | 368 | |
Series REGS
9.500% due 07/18/18 | | | 250 | | | | 257 | |
| | | | | | | | |
| | | | | | | 20,235 | |
| | | | | | | | |
| | |
| United States - 37.5% | | | | | | | | |
Altegrity, Inc. | | | | | | | | |
10.500% due 11/01/15 (Þ) | | | 4,730 | | | | 4,505 | |
AMC Entertainment, Inc. | | | | | | | | |
9.750% due 12/01/20 | | | 4,070 | | | | 3,968 | |
AMC Networks, Inc. | | | | | | | | |
7.750% due 07/15/21 (Þ) | | | 1,865 | | | | 2,084 | |
American Airlines, Inc. | | | | | | | | |
7.500% due 03/15/16 (Þ) | | | 2,280 | | | | 2,086 | |
AmeriGas Finance LLC / AmeriGas Finance Corp. | | | | | | | | |
7.000% due 05/20/22 | | | 2,090 | | | | 2,132 | |
Ameristar Casinos, Inc. | | | | | | | | |
7.500% due 04/15/21 (Å) | | | 790 | | | | 835 | |
7.500% due 04/15/21 | | | 1,210 | | | | 1,280 | |
Amscan Holdings, Inc. | | | | | | | | |
8.750% due 05/01/14 | | | 4,000 | | | | 4,015 | |
Applied Extrusion Technology Corp.
2nd Lien Term Loan | | | | | | | | |
1.000% due 09/02/15 (Å) | | | 3,520 | | | | 3,520 | |
ARS Intermediate Holdings LLC | | | | | | | | |
13.625% due 11/15/15 (Å) | | | 2,143 | | | | 2,146 | |
Atkore International, Inc. | | | | | | | | |
9.875% due 01/01/18 | | | 2,010 | | | | 2,050 | |
Berry Petroleum Co. | | | | | | | | |
6.750% due 11/01/20 | | | 1,305 | | | | 1,386 | |
6.375% due 09/15/22 | | | 270 | | | | 281 | |
Beverages & More, Inc. | | | | | | | | |
9.625% due 10/01/14 (Þ) | | | 4,295 | | | | 4,537 | |
Brickman Group Holdings, Inc. | | | | | | | | |
9.125% due 11/01/18 (Þ) | | | 4,220 | | | | 4,157 | |
BWAY Parent Co., Inc. | | | | | | | | |
10.125% due 11/01/15 | | | 170 | | | | 173 | |
C&S Group Enterprises LLC | | | | | | | | |
8.375% due 05/01/17 (Þ) | | | 293 | | | | 311 | |
Caesars Entertainment Operating Co., Inc. | | | | | | | | |
3.294% due 01/28/15 (Ê) | | | 1,700 | | | | 1,613 | |
10.000% due 12/15/15 | | | 2,240 | | | | 2,044 | |
11.250% due 06/01/17 | | | 4,550 | | | | 5,028 | |
CDW LLC / CDW Finance Corp. | | | | | | | | |
8.000% due 12/15/18 | | | 3,250 | | | | 3,543 | |
Century Aluminum Co. | | | | | | | | |
8.000% due 05/15/14 | | | 150 | | | | 153 | |
Chemtura Corp. | | | | | | | | |
7.875% due 09/01/18 | | | 1,950 | | | | 2,087 | |
Chesapeake Energy Corp. | | | | | | | | |
6.625% due 08/15/20 | | | 1,000 | | | | 975 | |
| | | | |
| | 204 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc. | | | | | | | | |
6.625% due 11/15/19 (Þ) | | | 420 | | | | 395 | |
CHS/Community Health Systems, Inc. | | | | | | | | |
8.000% due 11/15/19 (Þ) | | | 1,595 | | | | 1,683 | |
8.000% due 11/15/19 (Þ) | | | 930 | | | | 983 | |
CIT Group, Inc. | | | | | | | | |
5.500% due 02/15/19 (Å) | | | 1,050 | | | | 1,079 | |
Citigroup Funding, Inc. | | | | | | | | |
11.000% due 07/27/20 | | | 1,800,000 | | | | 1,273 | |
11.000% due 07/27/20 | | | 595,000 | | | | 421 | |
Series EMtN | | | | | | | | |
Zero coupon due 07/25/24 (Þ) | | | 200,000 | | | | 139 | |
Claires Stores, Inc. | | | | | | | | |
1.000% due 05/29/14 | | | 3,852 | | | | 3,665 | |
Claire’s Stores, Inc. | | | | | | | | |
9.000% due 03/15/19 (Þ) | | | 2,290 | | | | 2,359 | |
Clear Channel Worldwide Holdings, Inc. | | | | | | | | |
9.250% due 12/15/17 | | | 60 | | | | 65 | |
Cloud Peak Energy Resources LLC / Cloud Peak Energy Finance Corp. | | | | | | | | |
8.500% due 12/15/19 | | | 1,915 | | | | 1,949 | |
CommScope, Inc. | | | | | | | | |
8.250% due 01/15/19 (Þ) | | | 2,815 | | | | 3,005 | |
Comstock Resources, Inc. | | | | | | | | |
8.375% due 10/15/17 | | | 540 | | | | 532 | |
7.750% due 04/01/19 | | | 500 | | | | 465 | |
Cott Beverages, Inc. | | | | | | | | |
8.125% due 09/01/18 | | | 1,850 | | | | 2,003 | |
Covanta Holding Corp. | | | | | | | | |
6.375% due 10/01/22 | | | 1,750 | | | | 1,800 | |
CSC Holdings LLC | | | | | | | | |
6.750% due 11/15/21 (Þ) | | | 895 | | | | 929 | |
Cumulus Media Holdings, Inc. | | | | | | | | |
7.750% due 05/01/19 | | | 2,260 | | | | 2,139 | |
DISH DBS Corp. | | | | | | | | |
6.750% due 06/01/21 | | | 1,900 | | | | 2,080 | |
Dynacast International LLC / Dynacast Finance, Inc. | | | | | | | | |
9.250% due 07/15/19 (Þ) | | | 600 | | | | 630 | |
Education Management LLC / Education Management Finance Corp. | | | | | | | | |
8.750% due 06/01/14 | | | 1,575 | | | | 1,532 | |
Emdeon, Inc. | | | | | | | | |
11.000% due 12/31/19 (Þ) | | | 1,415 | | | | 1,599 | |
Emergency Medical Services Corp. | | | | | | | | |
8.125% due 06/01/19 | | | 3,115 | | | | 3,193 | |
Entercom Radio LLC | | | | | | | | |
10.500% due 12/01/19 | | | 2,450 | | | | 2,671 | |
Equinox Holdings, Inc. | | | | | | | | |
9.500% due 02/01/16 (Þ) | | | 3,040 | | | | 3,264 | |
Expert Global Solutions Inc. | | | | | | | | |
1.000% due 04/02/18 | | | 7,480 | | | | 7,432 | |
First Data Corp. | | | | | | | | |
7.375% due 06/15/19 (Þ) | | | 740 | | | | 757 | |
8.250% due 01/15/21 (Þ) | | | 2,175 | | | | 2,142 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Foresight Energy LLC / Foresight Energy Corp. | | | | | | | | |
9.625% due 08/15/17 (Þ) | | | 6,695 | | | | 6,929 | |
Goodyear Tire & Rubber Co. (The) | | | | | | | | |
7.000% due 05/15/22 | | | 625 | | | | 620 | |
Grifols, Inc. | | | | | | | | |
8.250% due 02/01/18 | | | 1,435 | | | | 1,537 | |
GXS Worldwide, Inc. | | | | | | | | |
9.750% due 06/15/15 | | | 7,700 | | | | 7,411 | |
Harbinger Group, Inc. | | | | | | | | |
10.625% due 11/15/15 | | | 2,800 | | | | 2,898 | |
Harrahs Operating Co. | | | | | | | | |
Zero coupon due 01/28/15 | | | 161 | | | | 153 | |
HCA Holdings, Inc. | | | | | | | | |
7.750% due 05/15/21 | | | 1,240 | | | | 1,302 | |
HD Supply, Inc. | | | | | | | | |
8.125% due 04/15/19 (Å) | | | 1,885 | | | | 2,024 | |
Health Management Associates, Inc. | | | | | | | | |
7.375% due 01/15/20 (Þ) | | | 2,540 | | | | 2,645 | |
Hillman Group, Inc. | | | | | | | | |
10.875% due 06/01/18 | | | 760 | | | | 802 | |
HUB International Holdings, Inc. | | | | | | | | |
9.000% due 12/15/14 (Þ) | | | 2,600 | | | | 2,646 | |
10.250% due 06/15/15 (Þ) | | | 510 | | | | 521 | |
Huntington Ingalls Industries, Inc. | | | | | | | | |
7.125% due 03/15/21 | | | 555 | | | | 588 | |
Icon Health & Fitness, Inc. | | | | | | | | |
11.875% due 10/15/16 (Þ) | | | 670 | | | | 578 | |
IDQ Holdings, Inc. | | | | | | | | |
11.500% due 04/01/17 (Þ) | | | 2,170 | | | | 2,279 | |
Immucor, Inc. | | | | | | | | |
11.125% due 08/15/19 | | | 4,085 | | | | 4,580 | |
INC Research LLC | | | | | | | | |
11.500% due 07/15/19 (Þ) | | | 4,840 | | | | 4,755 | |
J Crew Group, Inc. | | | | | | | | |
8.125% due 03/01/19 | | | 1,230 | | | | 1,273 | |
JBS USA LLC/JBS USA Finance, Inc. | | | | | | | | |
7.250% due 06/01/21 (Þ) | | | 1,110 | | | | 1,060 | |
JMC Steel Group | | | | | | | | |
8.250% due 03/15/18 (Þ) | | | 1,240 | | | | 1,283 | |
Kinetic Concepts, Inc. / KCI USA Inc | | | | | | | | |
10.500% due 11/01/18 (Þ) | | | 1,650 | | | | 1,702 | |
Kraton Polymers LLC/Kraton Polymers Capital Corp. | | | | | | | | |
6.750% due 03/01/19 | | | 2,195 | | | | 2,283 | |
Level 3 Financing, Inc. | | | | | | | | |
8.125% due 07/01/19 (Þ) | | | 565 | | | | 581 | |
8.625% due 07/15/20 (Þ) | | | 450 | | | | 471 | |
9.375% due 04/01/19 | | | 2,270 | | | | 2,474 | |
Levi Strauss & Co. | | | | | | | | |
7.750% due 05/15/18 | | | 775 | | | | 1,052 | |
7.625% due 05/15/20 | | | 1,500 | | | | 1,611 | |
6.875% due 05/01/22 (Å) | | | 850 | | | | 869 | |
Linn Energy LLC/Linn Energy Finance Corp. | | | | | | | | |
6.500% due 05/15/19 (Þ) | | | 1,960 | | | | 1,970 | |
6.250% due 11/01/19 (Þ) | | | 175 | | | | 172 | |
| | |
| Russell Global Opportunistic Credit Fund | | 205 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
MedAssets, Inc. | | | | | | | | |
8.000% due 11/15/18 | | | 3,860 | | | | 4,034 | |
Mercer International, Inc. | | | | | | | | |
9.500% due 12/01/17 | | | 1,960 | | | | 2,029 | |
Michaels Stores, Inc. | | | | | | | | |
7.750% due 11/01/18 | | | 2,090 | | | | 2,200 | |
Midwest Gaming Borrower LLC / Midwest Finance Corp. | | | | | | | | |
11.625% due 04/15/16 (Þ) | | | 1,660 | | | | 1,845 | |
Midwest Generation LLC | | | | | | | | |
Series B | | | | | | | | |
8.560% due 01/02/16 | | | 570 | | | | 553 | |
Milk Specialties, Co. | | | | | | | | |
1.000% due 12/23/18 (Å) | | | 1,500 | | | | 1,470 | |
Monaco SpinCo, Inc. | | | | | | | | |
6.750% due 04/30/20 (Å) | | | 1,025 | | | | 1,061 | |
Mueller Water Products, Inc. | | | | | | | | |
7.375% due 06/01/17 | | | 2,205 | | | | 2,211 | |
Murray Energy Corp. | | | | | | | | |
10.250% due 10/15/15 (Þ) | | | 1,750 | | | | 1,663 | |
National Mentor Holdings, Inc. | | | | | | | | |
7.000% due 02/09/17 | | | 2,433 | | | | 2,418 | |
12.500% due 02/15/18 (Þ) | | | 2,850 | | | | 2,850 | |
NBTY, Inc. | | | | | | | | |
9.000% due 10/01/18 | | | 2,685 | | | | 2,964 | |
New Star Metals, Inc. | | | | | | | | |
10.500% due 06/18/15 (Å) | | | 6,750 | | | | 6,750 | |
Nortek, Inc. | | | | | | | | |
8.500% due 04/15/21 | | | 460 | | | | 454 | |
North Atlantic Trading Co. | | | | | | | | |
11.500% due 07/15/16 (Þ) | | | 3,100 | | | | 3,150 | |
19.000% due 01/15/17 (Þ) | | | 1,200 | | | | 1,116 | |
NRG Energy, Inc. | | | | | | | | |
7.625% due 01/15/18 | | | 1,350 | | | | 1,367 | |
Oasis Petroleum, Inc. | | | | | | | | |
6.500% due 11/01/21 | | | 1,190 | | | | 1,214 | |
Optima Specialty Steel, Inc. | | | | | | | | |
12.500% due 12/15/16 (Þ) | | | 2,030 | | | | 2,111 | |
Paperworks Industries, Inc. Term Loan | | | | | | | | |
11.125% due 07/12/16 | | | 1,410 | | | | 1,392 | |
11.125% due 07/20/16 (Å) | | | 4,462 | | | | 4,406 | |
Pemex Project Funding Master Trust | | | | | | | | |
Series REGS
5.500% due 02/24/25 | | | 2,100 | | | | 2,888 | |
Physio-Control International, Inc. | | | | | | | | |
9.875% due 01/15/19 (Þ) | | | 560 | | | | 595 | |
Physiotherapy Associates Holdings, Inc. | | | | | | | | |
11.875% due 05/01/19 (Å) | | | 460 | | | | 472 | |
Pilgrim’s Pride Corp. | | | | | | | | |
7.875% due 12/15/18 | | | 2,640 | | | | 2,680 | |
Pinnacle Entertainment, Inc. | | | | | | | | |
8.750% due 05/15/20 | | | 1,898 | | | | 2,093 | |
Pinnacle Foods Finance LLC / Pinnacle Foods Finance Corp. | | | | | | | | |
9.250% due 04/01/15 | | | 2,000 | | | | 2,050 | |
Plains Exploration & Production Co. | | | | | | | | |
6.750% due 02/01/22 | | | 1,100 | | | | 1,144 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Ply Gem Industries, Inc. | | | | | | | | |
8.250% due 02/15/18 | | | 1,130 | | | | 1,110 | |
Polymer Group, Inc. | | | | | | | | |
7.750% due 02/01/19 | | | 1,960 | | | | 2,092 | |
Prestige Brands, Inc. | | | | | | | | |
8.125% due 02/01/20 (Þ) | | | 1,323 | | | | 1,445 | |
Production Resource Group, Inc. | | | | | | | | |
8.875% due 05/01/19 (Þ) | | | 550 | | | | 452 | |
Radiation Therapy Services, Inc.
8.875% due 01/15/17 (Å) | | | 2,240 | | | | 2,217 | |
9.875% due 04/15/17 | | | 3,500 | | | | 2,809 | |
Radnet Management, Inc.
10.375% due 04/01/18 | | | 3,230 | | | | 3,206 | |
Realogy Corp.
1.000% due 10/15/17 | | | 2,770 | | | | 2,845 | |
Reliance Holdings USA, Inc.
5.400% due 02/14/22 (Þ) | | | 500 | | | | 501 | |
ResCare, Inc.
10.750% due 01/15/19 | | | 1,549 | | | | 1,721 | |
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC
7.875% due 08/15/19 (Þ) | | | 188 | | | | 203 | |
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu
7.125% due 04/15/19 (Þ) | | | 2,400 | | | | 2,508 | |
6.875% due 02/15/21 (Þ) | | | 105 | | | | 108 | |
9.875% due 08/15/19 (Þ) | | | 769 | | | | 802 | |
Roofing Supply Group LLC / Roofing Supply Finance, Inc.
8.625% due 12/01/17 (Þ) | | | 3,231 | | | | 3,683 | |
RSC Equipment Rental, Inc./RSC Holdings III LLC
8.250% due 02/01/21 | | | 570 | | | | 616 | |
Scientific Games Corp.
8.125% due 09/15/18 | | | 1,465 | | | | 1,588 | |
Sealy Mattress Co.
8.250% due 06/15/14 | | | 3,170 | | | | 3,154 | |
ServiceMaster Co.
10.750% due 07/15/15 (Þ) | | | 1,133 | | | | 1,182 | |
8.000% due 02/15/20 (Þ) | | | 950 | | | | 1,017 | |
Severstal Columbus LLC
10.250% due 02/15/18 | | | 2,000 | | | | 2,145 | |
Sitel LLC / Sitel Finance Corp.
11.000% due 08/01/17 (Å) | | | 3,170 | | | | 3,107 | |
Southern Copper Corp.
6.750% due 04/16/40 | | | 455 | | | | 502 | |
Sprint Capital Corp.
6.900% due 05/01/19 | | | 3,200 | | | | 2,800 | |
Sprint Nextel Corp.
11.500% due 11/15/21 (Þ) | | | 627 | | | | 666 | |
SSI Investments II, Ltd. / SSI Co.-Issuer LLC
11.125% due 06/01/18 | | | 1,816 | | | | 2,011 | |
Star Gas Partners, LP / Star Gas Finance Co.
8.875% due 12/01/17 | | | 440 | | | | 438 | |
| | | | |
| | 206 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Stone Energy Corp.
8.625% due 02/01/17 | | | 1,220 | | | | 1,284 | |
Summit Materials LLC / Summit Materials Finance Corp.
10.500% due 01/31/20 (Þ) | | | 1,285 | | | | 1,349 | |
SunGard Data Systems, Inc.
7.625% due 11/15/20 | | | 1,450 | | | | 1,546 | |
Sunstate Equipment Co. LLC/Sunstate Equipment Co, Inc.
12.000% due 06/15/16 (Þ) | | | 1,460 | | | | 1,496 | |
Symbion, Inc.
8.000% due 06/15/16 | | | 750 | | | | 750 | |
Tekin Plex, Inc. Term Loan
9.250% due 11/19/15 | | | 3,169 | | | | 3,101 | |
Texas Competitive Electric Holdings Co. LLC / TCEH Finance, Inc.
11.500% due 10/01/20 (Þ) | | | 2,475 | | | | 1,535 | |
Thermadyne Holdings Corp.
9.000% due 12/15/17 | | | 3,670 | | | | 3,752 | |
9.000% due 12/15/17 (Þ) | | | 2,660 | | | | 2,720 | |
Tomkins LLC / Tomkins, Inc.
9.000% due 10/01/18 | | | 1,835 | | | | 2,041 | |
Townsquare Radio LLC / Townsquare Radio, Inc.
9.000% due 04/01/19 (Å) | | | 3,330 | | | | 3,430 | |
TransDigm, Inc.
7.750% due 12/15/18 | | | 170 | | | | 185 | |
TransUnion Holding Co., Inc.
9.625% due 06/15/18 (Þ) | | | 2,915 | | | | 3,126 | |
TransUnion LLC/TransUnion Financing Corp.
11.375% due 06/15/18 | | | 1,270 | | | | 1,508 | |
Trimas Corp.
9.750% due 12/15/17 | | | 1,750 | | | | 1,943 | |
UCI International, Inc.
8.625% due 02/15/19 | | | 1,605 | | | | 1,645 | |
UR Financing Escrow Corp.
7.375% due 05/15/20 (Þ) | | | 1,360 | | | | 1,428 | |
7.625% due 04/15/22 (Þ) | | | 2,625 | | | | 2,776 | |
USG Corp.
6.300% due 11/15/16 | | | 395 | | | | 377 | |
8.375% due 10/15/18 (Þ) | | | 795 | | | | 833 | |
7.875% due 03/30/20 (Å) | | | 850 | | | | 873 | |
USPI Finance Corp.
9.000% due 04/01/20 (Þ) | | | 2,070 | | | | 2,168 | |
Valeant Pharmaceuticals International
6.750% due 08/15/21 (Þ) | | | 840 | | | | 817 | |
7.250% due 07/15/22 (Þ) | | | 1,365 | | | | 1,361 | |
Vanguard Health Holding Co. II LLC / Vanguard Holding Co II, Inc.
8.000% due 02/01/18 | | | 1,315 | | | | 1,340 | |
7.750% due 02/01/19 (Þ) | | | 1,225 | | | | 1,229 | |
Vision Holdings Corp.
1.000% due 11/23/16 | | | 397 | | | | 395 | |
Vulcan Materials Co.
7.500% due 06/15/21 | | | 1,385 | | | | 1,534 | |
West Corp.
8.625% due 10/01/18 | | | 1,740 | | | | 1,910 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Windstream Corp.
7.500% due 04/01/23 | | | 1,315 | | | | 1,364 | |
WireCo WorldGroup, Inc.
9.500% due 05/15/17 | | | 2,250 | | | | 2,323 | |
WMG Acquisition Corp.
11.500% due 10/01/18 | | | 1,660 | | | | 1,809 | |
| | | | | | | | |
| | | | | | | 322,218 | |
| | | | | | | | |
| | |
| Uruguay - 0.7% | | | | | | | | |
Uruguay Government International Bond
9.250% due 05/17/17 | | | 302 | | | | 401 | |
8.000% due 11/18/22 | | | 2,755 | | | | 3,806 | |
6.875% due 09/28/25 | | | 828 | | | | 1,076 | |
7.625% due 03/21/36 | | | 716 | | | | 1,005 | |
| | | | | | | | |
| | | | | | | 6,288 | |
| | | | | | | | |
|
| Venezuela, Bolivarian Republic of - 2.2% | |
Bogota Distrito Capital
9.750% due 07/26/28 | | | 800,000 | | | | 608 | |
Petroleos de Venezuela SA
Series 2014
4.900% due 10/28/14 | | | 16,478 | | | | 15,036 | |
Series 2015
5.000% due 10/28/15 | | | 183 | | | | 156 | |
Series REGS
8.500% due 11/02/17 | | | 854 | | | | 762 | |
Venezuela Government International Bond
5.750% due 02/26/16 | | | 489 | | | | 443 | |
Series REGS
13.625% due 08/15/18 | | | 1,418 | | | | 1,574 | |
| | | | | | | | |
| | | | | | | 18,579 | |
| | | | | | | | |
|
| Virgin Islands, British - 0.4% | |
Gold Fields Orogen Holding BVI, Ltd.
Series REGS
4.875% due 10/07/20 | | | 869 | | | | 823 | |
Mega Advance Investments, Ltd.
5.000% due 05/12/21 (Þ) | | | 405 | | | | 427 | |
PCCW-HKT Capital No. 4, Ltd.
4.250% due 02/24/16 | | | 835 | | | | 864 | |
QGOG Atlantic / Alaskan Rigs, Ltd.
5.250% due 07/30/18 (Þ) | | | 658 | | | | 661 | |
Sinochem Overseas Capital Co., Ltd.
4.500% due 11/12/20 (Þ) | | | 1,056 | | | | 1,040 | |
| | | | | | | | |
| | | | | | | 3,815 | |
| | | | | | | | |
| | |
Total Long-Term Investments
(cost $747,100) | | | | | | | 757,613 | |
| | | | | | | | |
| | |
| Preferred Stocks - 0.2% | | | | | | | | |
| United States - 0.2% | | | | | | | | |
Harbinger Group, Inc. (Å)(Æ) | | | 2,000 | | | | 2,033 | |
| | | | | | | | |
| | |
Total Preferred Stocks
(cost $2,000) | | | | | | | 2,033 | |
| | | | | | | | |
| | |
| Russell Global Opportunistic Credit Fund | | 207 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Short-Term Investments - 10.8% | | | | | | | | |
| Brazil - 0.1% | | | | | | | | |
JPMorgan Chase Bank NA
12.750% due 07/10/12 | | | 200 | | | | 1,068 | |
| | | | | | | | |
| | |
| Germany - 0.1% | | | | | | | | |
Deutsche Bank AG/London
10.466% due 12/22/12 (Ê)(Þ) | | | 500 | | | | 506 | |
| | | | | | | | |
| | |
| Ukraine - 0.5% | | | | | | | | |
Ukraine Government International Bond
Series REGS
6.385% due 06/26/12 | | | 4,000 | | | | 4,000 | |
| | | | | | | | |
| | |
| United States - 10.1% | | | | | | | | |
Citigroup Funding, Inc.
10.000% due 07/18/12 | | | 200 | | | | 1,066 | |
JPMorgan Chase Bank NA
Series 5
Zero coupon due 08/18/12 | | | 240 | | | | 1,253 | |
Merrill Communications, LLC Term Loan B
7.500% due 11/22/12 | | | 6,743 | | | | 6,339 | |
PT Bakrie & Brothers TBK
Zero coupon due 01/18/13 | | | 444 | | | | 417 | |
Russell U.S. Cash Management Fund | | | 77,947,194 | (¥) | | | 77,947 | |
| | | | | | | | |
| | | | | | | 87,022 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $93,302) | | | | | | | 92,596 | |
| | | | | | | | |
| | |
Total Investments - 99.2%
(identified cost $842,402) | | | | | | | 852,242 | |
| | |
Other Assets and Liabilities,
Net - 0.8% | | | | | | | 6,623 | |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 858,865 | |
| | | | | | | | |
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.
| | | | |
| | 208 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Deutsche Bank AG | | USD | | | 2,971 | | | CNY | | 18,925 | | | 05/16/12 | | | | 27 | |
Deutsche Bank AG | | USD | | | 5,074 | | | COP | | 8,970,000 | | | 05/02/12 | | | | 16 | |
Deutsche Bank AG | | CNY | | | 18,925 | | | USD | | 2,986 | | | 05/16/12 | | | | (12 | ) |
Deutsche Bank AG | | COP | | | 8,970,000 | | | USD | | 5,000 | | | 05/02/12 | | | | (90 | ) |
Deutsche Bank AG | | COP | | | 8,970,000 | | | USD | | 5,049 | | | 06/01/12 | | | | (20 | ) |
Deutsche Bank AG | | EUR | | | 185 | | | USD | | 242 | | | 05/31/12 | | | | (3 | ) |
Deutsche Bank AG | | EUR | | | 223 | | | USD | | 295 | | | 05/31/12 | | | | (1 | ) |
Deutsche Bank AG | | EUR | | | 400 | | | USD | | 524 | | | 05/31/12 | | | | (6 | ) |
Deutsche Bank AG | | EUR | | | 561 | | | USD | | 741 | | | 05/31/12 | | | | (2 | ) |
Deutsche Bank AG | | EUR | | | 13,707 | | | USD | | 17,937 | | | 05/31/12 | | | | (209 | ) |
Deutsche Bank AG | | GBP | | | 241 | | | USD | | 382 | | | 05/31/12 | | | | (9 | ) |
Deutsche Bank AG | | GBP | | | 544 | | | USD | | 863 | | | 05/31/12 | | | | (20 | ) |
Deutsche Bank AG | | MXN | | | 40,556 | | | USD | | 3,100 | | | 05/14/12 | | | | (10 | ) |
State Street Bank & Trust Co. | | CHF | | | 942 | | | USD | | 1,026 | | | 05/08/12 | | | | (12 | ) |
State Street Bank & Trust Co. | | EUR | | | 59,445 | | | USD | | 77,941 | | | 05/08/12 | | | | (748 | ) |
State Street Bank & Trust Co. | | GBP | | | 8,552 | | | USD | | 13,551 | | | 05/08/12 | | | | (328 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | (1,427 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | |
| Credit Indices | | | | | | | | | | | | | | | | |
Reference
Entity | | Counterparty | | Notional
Amount | | | Fund (Pays)/Receives
Fixed Rate | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | |
Dow Jones CDX Index | | Morgan Stanley | | | USD | | | | 3,000 | | | 5.000% | | | 06/20/17 | | | | (84 | ) |
Dow Jones CDX Index | | Morgan Stanley | | | USD | | | | 18,000 | | | 5.000% | | | 06/20/17 | | | | (503 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Credit Indices Premiums Paid (Received) - ($677) (å) | | | | | | | (587 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Index Swap Contracts | | | | |
Fund Receives
Underlying Security | | Counterparty | | Notional
Amount | | Fund Pays
Fixed Rate | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
JPMorgan Emerging Market Bond Index | | JPMorgan | | | USD | | | 17,000 | | 1 Month LIBOR plus 0.450% | | | 06/06/12 | | | | 56 | |
| | | | | | | | | | | | | | | | | | |
| | | | |
Total Market Value of Index Swap Contracts Premiums Paid (Received) - ($-) (å) | | | | | | | | | | | | 56 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Opportunistic Credit Fund | | 209 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Fixed Income Investments | | | | | | | | | | | | | | | | | | | | |
Argentina | | $ | — | | | $ | 19,889 | | | $ | — | | | $ | 19,889 | | | | 2.3 | |
Australia | | | — | | | | 1,515 | | | | — | | | | 1,515 | | | | 0.2 | |
Austria | | | — | | | | 1,289 | | | | — | | | | 1,289 | | | | 0.2 | |
Barbados | | | — | | | | 648 | | | | — | | | | 648 | | | | 0.1 | |
Bermuda | | | — | | | | 3,744 | | | | — | | | | 3,744 | | | | 0.4 | |
Brazil | | | — | | | | 13,191 | | | | 1,068 | | | | 14,259 | | | | 1.7 | |
Canada | | | — | | | | 8,479 | | | | — | | | | 8,479 | | | | 1.0 | |
Cayman Islands | | | — | | | | 13,334 | | | | — | | | | 13,334 | | | | 1.6 | |
Chile | | | — | | | | 3,211 | | | | — | | | | 3,211 | | | | 0.4 | |
Columbia | | | — | | | | 18,282 | | | | — | | | | 18,282 | | | | 2.1 | |
Croatia | | | — | | | | 5,161 | | | | — | | | | 5,161 | | | | 0 .6 | |
Cyprus | | | — | | | | 554 | | | | — | | | | 554 | | | | 0.1 | |
Denmark | | | — | | | | 2,134 | | | | — | | | | 2,134 | | | | 0.2 | |
Dominican Republic | | | — | | | | 50 | | | | — | | | | 50 | | | | — | * |
El Salvador | | | — | | | | 3,424 | | | | — | | | | 3,424 | | | | 0.4 | |
France | | | — | | | | 8,020 | | | | — | | | | 8,020 | | | | 0.9 | |
Germany | | | — | | | | 9,782 | | | | — | | | | 9,782 | | | | 1.1 | |
Ghana | | | — | | | | 895 | | | | — | | | | 895 | | | | 0.1 | |
Hungary | | | — | | | | 4,371 | | | | — | | | | 4,371 | | | | 0.5 | |
India | | | — | | | | 612 | | | | — | | | | 612 | | | | 0.1 | |
Indonesia | | | — | | | | 10,922 | | | | — | | | | 10,922 | | | | 1.3 | |
Iraq | | | — | | | | 10,157 | | | | — | | | | 10,157 | | | | 1.2 | |
Ireland | | | — | | | | 8,804 | | | | — | | | | 8,804 | | | | 1.0 | |
Jersey | | | — | | | | 574 | | | | — | | | | 574 | | | | 0.1 | |
Kazakhstan | | | — | | | | 11,660 | | | | — | | | | 11,660 | | | | 1.4 | |
Lithuania | | | — | | | | 5,684 | | | | — | | | | 5,684 | | | | 0.7 | |
Luxembourg | | | — | | | | 36,092 | | | | — | | | | 36,092 | | | | 4.2 | |
Malaysia | | | — | | | | 8,867 | | | | — | | | | 8,867 | | | | 1.0 | |
Mexico | | | — | | | | 27,388 | | | | — | | | | 27,388 | | | | 3.2 | |
Netherlands | | | — | | | | 23,507 | | | | — | | | | 23,507 | | | | 2.7 | |
Panama | | | — | | | | 13,364 | | | | — | | | | 13,364 | | | | 1.5 | |
Peru | | | — | | | | 3,835 | | | | — | | | | 3,835 | | | | 0.4 | |
Philippines | | | — | | | | 8,328 | | | | — | | | | 8,328 | | | | 1.0 | |
Poland | | | — | | | | 16,496 | | | | — | | | | 16,496 | | | | 1.9 | |
Puerto Rico | | | — | | | | 2,038 | | | | — | | | | 2,038 | | | | 0.2 | |
Qatar | | | — | | | | 6,950 | | | | — | | | | 6,950 | | | | 0.8 | |
Romania | | | — | | | | 359 | | | | — | | | | 359 | | | | — | * |
Russia | | | — | | | | 26,474 | | | | — | | | | 26,474 | | | | 3 .1 | |
Singapore | | | — | | | | 1,348 | | | | — | | | | 1,348 | | | | 0 .2 | |
South Africa | | | — | | | | 10,363 | | | | — | | | | 10,363 | | | | 1.2 | |
South Korea | | | — | | | | 1, 503 | | | | — | | | | 1,503 | | | | 0.2 | |
Spain | | | — | | | | 6,558 | | | | — | | | | 6,558 | | | | 0.8 | |
Sweden | | | — | | | | 2,351 | | | | — | | | | 2,351 | | | | 0.3 | |
Switzerland | | | — | | | | — | | | | 1,681 | | | | 1,681 | | | | 0.2 | |
Turkey | | | — | | | | 15,006 | | | | — | | | | 15,006 | | | | 1.7 | |
Ukraine | | | — | | | | 5,489 | | | | — | | | | 5,489 | | | | 0.6 | |
United Arab Emirates | | | — | | | | 1,027 | | | | — | | | | 1,027 | | | | 0.1 | |
United Kingdom | | | — | | | | 20,235 | | | | — | | | | 20,235 | | | | 2.4 | |
United States | | | — | | | | 301,618 | | | | 20,600 | | | | 322,218 | | | | 37.5 | |
Uruguay | | | — | | | | 6,288 | | | | — | | | | 6,288 | | | | 0.7 | |
Venezuela, Bolivarian Republic of | | | — | | | | 18,579 | | | | — | | | | 18,579 | | | | 2.2 | |
Virgin Islands, British | | | — | | | | 3,815 | | | | — | | | | 3,815 | | | | 0.4 | |
Preferred Stocks | | | — | | | | — | | | | 2,033 | | | | 2,033 | | | | 0.2 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 210 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Short-Term Investments | | $ | — | | | $ | 89,353 | | | $ | 3,243 | | | $ | 92,596 | | | | 10.8 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | — | | | | 823,617 | | | | 28,625 | | | | 852,242 | | | | 99.2 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | 0.8 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | — | | | | (1,427 | ) | | | — | | | | (1,427 | ) | | | (0.2 | ) |
Credit Default Swap Contracts | | | — | | | | 90 | | | | — | | | | 90 | | | | — | * |
Index Swap Contracts | | | — | | | | — | | | | 56 | | | | 56 | | | | — | * |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | — | | | $ | (1,337 | ) | | $ | 56 | | | $ | (1,281 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than 0.05% of net assets. |
| ** | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
The significant inputs used in determining the fair values of Level 3 securities were as follows:
| | | | | | | | | | |
| Category | | Inputs | | Market Value
$ | | | % of Level 3
Instruments’
Total Market Value | |
| | | | | | | | | | |
Brazil | | Broker Quote | | $ | 1,068 | | | | 3.7 | |
Switzerland | | Priced by Proxy/Reference Security | | | 1,681 | | | | 5.9 | |
United States | | Broker Quote | | | 2,387 | | | | 8.3 | |
| | Investment Manager Fair Value Recommendation | | | 18,213 | | | | 63.6 | |
Preferred Stock | | Investment Manager Fair Value Recommendation | | | 2,033 | | | | 7.1 | |
Short-Term Investments | | Broker Quote | | | 1,990 | | | | 7.0 | |
| | Priced by Proxy/Reference Security | | | 1,253 | | | | 4.4 | |
| | | | | | | | | | |
| | | | $ | 28,625 | | | | 100.0 | |
| | | | | | | | | | |
A reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining a value for the period ended April 30, 2012 were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Beginning
Balance
11/1/2011 | | | Gross
Purchases | | | Gross
Sales | | | Accrued
Discounts/
(Premiums) | | | Realized
Gain/(Loss) | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Fixed Income Investments | | | | | | | | | | | | | | | | | | | | |
Brazil | | $ | 3,227 | | | $ | — | | | $ | 2,056 | | | $ | 27 | | | $ | (42 | ) |
Switzerland | | | — | | | | 1,604 | | | | — | | | | 1 | | | | — | |
United Kingdom | | | 1,492 | | | | — | | | | 1,485 | | | | — | | | | (3 | ) |
United States | | | 27,978 | | | | 2,761 | | | | 9,994 | | | | (3 | ) | | | 31 | |
Preferred Stock | | | 1,910 | | | | — | | | | — | | | | — | | | | — | |
Short-Term Investments | | | 1,366 | | | | 5,067 | | | | 3,018 | | | | 84 | | | | (129 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 35,973 | | | | 9,432 | | | | 16,553 | | | | 109 | | | | (143 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Index Swap Contracts | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Opportunistic Credit Fund | | 211 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Net
Transfers
into Level 3 | | | Net
Transfers
out of
Level 3 | | | Net change
in Unrealized
Appreciation/
(Depreciation) | | | Ending
Balance at
4/30/2012 | | | Net change in
Unrealized
Appreciation/
(Depreciation) on
Investments held
as of 4/30/2012 | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Fixed Income Investments | | | | | | | | | | | | | | | | | | | | |
Brazil | | $ | — | | | $ | — | | | $ | (88 | ) | | $ | 1,068 | | | $ | (106 | ) |
Switzerland | | | — | | | | — | | | | 76 | | | | 1,681 | | | | 76 | |
United Kingdom | | | — | | | | — | | | | (4 | ) | | | — | | | | — | |
United States | | | — | | | | — | | | | (173 | ) | | | 20,600 | | | | 83 | |
Preferred Stock | | | — | | | | — | | | | 123 | | | | 2,033 | | | | 123 | |
Short-Term Investments | | | — | | | | — | | | | (127 | ) | | | 3,243 | | | | (127 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | — | | | | — | | | | (193 | ) | | | 28,625 | | | | 49 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Index Swap Contracts | | | — | | | | — | | | | 56 | | | | 56 | | | | 56 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments | | | — | | | | — | | | | 56 | | | | 56 | | | | 56 | |
| | | | | | | | | | | | | | | | | | | | |
Fair Value of Derivative Instruments — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit Contracts | | | Equity Contracts | | | Foreign
Currency
Contracts | |
| | | | | | | | | | | | |
| Location: Statement of Assets and Liabilities - Assets | | | | | | | | | | | | |
Unrealized appreciation on foreign currency exchange contracts | | $ | — | | | $ | — | | | $ | 43 | |
Index swap contracts, at market value | | | — | | | | 56 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | — | | | $ | 56 | | | $ | 43 | |
| | | | | | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | — | | | $ | 1,470 | |
Credit default swap contracts, at market value | | | 587 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 587 | | | $ | — | | | $ | 1,470 | |
| | | | | | | | | | | | |
| | | |
| Derivatives not accounted for as hedging instruments | | Credit Contracts | | | Equity Contracts | | | Foreign
Currency
Contracts | |
| | | | | | | | | | | | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | | | | | |
Credit default swap contracts | | $ | 1,132 | | | $ | — | | | $ | — | |
Index swap contracts | | | — | | | | 674 | | | | — | |
Foreign currency-related transactions | | | — | | | | — | | | | 1,749 | |
| | | | | | | | | | | | |
Total | | $ | 1,132 | | | $ | 674 | | | $ | 1,749 | |
| | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 212 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Fair Value of Derivative Instruments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | |
| Derivatives not accounted for as hedging instruments | | Credit Contracts | | | Equity Contracts | | | Foreign
Currency
Contracts | |
| | | | | | | | | | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | | | |
Credit default swap contracts | | $ | (628 | ) | | $ | — | | | $ | — | |
Index swap contracts | | | — | | | | 56 | | | | — | |
Foreign currency-related transactions | | | — | | | | — | | | | 1,359 | |
| | | | | | | | | | | | |
Total | | $ | (628 | ) | | $ | 56 | | | $ | 1,359 | |
| | | | | | | | | | | | |
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 Global Opportunistic Credit Fund | | 213 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 842,402 | |
Investments, at market* | | | 852,242 | |
Cash | | | 460 | |
Cash (restricted) | | | 2,303 | |
Foreign currency holdings** | | | 2,174 | |
Unrealized appreciation on foreign currency exchange contracts | | | 43 | |
Receivables: | | | | |
Dividends and interest | | | 14,690 | |
Dividends from affiliated Russell money market funds | | | 10 | |
Investments sold | | | 4,719 | |
Fund shares sold | | | 1,095 | |
Foreign taxes recoverable | | | 55 | |
From affiliates | | | 1 | |
Prepaid expenses | | | 1 | |
Unrealized appreciation on index swap contracts, at market | | | 56 | |
| | | | |
Total assets | | | 877,849 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to broker | | | 1,188 | |
Investments purchased | | | 14,395 | |
Fund shares redeemed | | | 648 | |
Accrued fees to affiliates | | | 584 | |
Other accrued expenses | | | 112 | |
Unrealized depreciation on foreign currency exchange contracts | | | 1,470 | |
Credit default swap contracts, at market value*** | | | 587 | |
| | | | |
Total liabilities | | | 18,984 | |
| | | | |
| | | | |
Net Assets | | $ | 858,865 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 214 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 19,609 | |
Accumulated net realized gain (loss) | | | (1,140 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 9,840 | |
Credit default swap contracts | | | 90 | |
Index swap contracts | | | 56 | |
Foreign currency-related transactions | | | (1,393 | ) |
Shares of beneficial interest | | | 830 | |
Additional paid-in capital | | | 830,973 | |
| | | | |
Net Assets | | $ | 858,865 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.31 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | | $ | 10.71 | |
Class A — Net assets | | $ | 5,993,451 | |
Class A — Shares outstanding ($.01 par value) | | | 581,223 | |
Net asset value per share: Class C(a) | | $ | 10.27 | |
Class C — Net assets | | $ | 5,220,554 | |
Class C — Shares outstanding ($.01 par value) | | | 508,392 | |
Net asset value per share: Class E(a) | | $ | 10.32 | |
Class E — Net assets | | $ | 14,959,755 | |
Class E — Shares outstanding ($.01 par value) | | | 1,449,296 | |
Net asset value per share: Class S(a) | | $ | 10.34 | |
Class S — Net assets | | $ | 463,541,984 | |
Class S — Shares outstanding ($.01 par value) | | | 44,823,909 | |
Net asset value per share: Class Y(a) | | $ | 10.35 | |
Class Y — Net assets | | $ | 369,149,734 | |
Class Y — Shares outstanding ($.01 par value) | | | 35,673,013 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings — cost | | $ | 2,166 | |
** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 77,947 | |
*** Credit default swap contracts — premiums paid (received) | | $ | (677 | ) |
| (a) | 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.
| | |
| Russell Global Opportunistic Credit Fund | | 215 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 87 | |
Dividends from affiliated Russell money market funds | | | 45 | |
Interest | | | 29,001 | |
Less foreign taxes withheld | | | (12 | ) |
| | | | |
Total investment income | | | 29,121 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 4,002 | |
Administrative fees | | | 200 | |
Custodian fees | | | 92 | |
Distribution fees - Class A | | | 5 | |
Distribution fees - Class C | | | 14 | |
Transfer agent fees - Class A | | | 4 | |
Transfer agent fees - Class C | | | 3 | |
Transfer agent fees - Class E | | | 13 | |
Transfer agent fees - Class S | | | 388 | |
Transfer agent fees - Class Y | | | 8 | |
Professional fees | | | 42 | |
Registration fees | | | 47 | |
Shareholder servicing fees - Class C | | | 4 | |
Shareholder servicing fees - Class E | | | 18 | |
Trustees’ fees | | | 10 | |
Printing fees | | | 73 | |
Miscellaneous | | | 17 | |
| | | | |
Expenses before reductions | | | 4,940 | |
Expense reductions | | | (1,325 | ) |
| | | | |
Net expenses | | | 3,615 | |
| | | | |
Net investment income (loss) | | | 25,506 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (2,391 | ) |
Credit default swap contracts | | | 1,132 | |
Index swap contracts | | | 674 | |
Foreign currency-related transactions | | | 1,693 | |
| | | | |
Net realized gain (loss) | | | 1,108 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 24,726 | |
Credit default swap contracts | | | (628 | ) |
Index swap contracts | | | 56 | |
Foreign currency-related transactions | | | 1,330 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 25,484 | |
| | | | |
Net realized and unrealized gain (loss) | | | 26,592 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 52,098 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 216 | | | Russell Global Opportunistic Credit Fund |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 25,506 | | | $ | 41,662 | |
Net realized gain (loss) | | | 1,108 | | | | 3,562 | |
Net change in unrealized appreciation (depreciation) | | | 25,484 | | | | (20,070 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 52,098 | | | | 25,154 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (170 | ) | | | (4 | ) |
Class C | | | (192 | ) | | | (8 | ) |
Class E | | | (844 | ) | | | (8 | ) |
Class S | | | (26,090 | ) | | | (2,509 | ) |
Class Y | | | (20,978 | ) | | | (3,474 | ) |
From net realized gain | | | | | | | | |
Class C | | | — | | | | (1 | ) |
Class S | | | — | | | | (90 | ) |
Class Y | | | — | | | | (122 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (48,274 | ) | | | (6,216 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 77,932 | | | | 138,088 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 81,756 | | | | 157,026 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 777,109 | | | | 620,083 | |
| | | | | | | | |
End of period | | $ | 858,865 | | | $ | 777,109 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 19,609 | | | $ | 42,377 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Opportunistic Credit Fund | | 217 |
Russell Investment Company
Russell Global Opportunistic Credit Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.32 | | | | .31 | | | | .31 | | | | .62 | | | | (.63 | ) | | | — | |
October 31, 2011 | | | 10.09 | | | | .57 | | | | (.25 | ) | | | .32 | | | | (.09 | ) | | | — | (f) |
October 31, 2010(7) | | | 10.00 | | | | .03 | | | | .06 | | | | .09 | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.25 | | | | .27 | | | | .32 | | | | .59 | | | | (57 | ) | | | — | |
October 31, 2011 | | | 10.08 | | | | .48 | | | | (.23 | ) | | | .25 | | | | (.08 | ) | | | — | (f) |
October 31, 2010(7) | | | 10.00 | | | | .02 | | | | .06 | | | | .08 | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.32 | | | | .31 | | | | .32 | | | | .63 | | | | (.63 | ) | | | — | |
October 31, 2011 | | | 10.09 | | | | .56 | | | | (.24 | ) | | | .32 | | | | (.09 | ) | | | — | (f) |
October 31, 2010(7) | | | 10.00 | | | | .03 | | | | .06 | | | | .09 | | | | — | | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.35 | | | | .32 | | | | .32 | | | | .64 | | | | (.65 | ) | | | — | |
October 31, 2011 | | | 10.09 | | | | .58 | | | | (.22 | ) | | | .36 | | | | (.10 | ) | | | — | (f) |
October 31, 2010(7) | | | 10.00 | | | | .03 | | | | .06 | | | | .09 | | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.36 | | | | .32 | | | | .32 | | | | .64 | | | | (.65 | ) | | | — | |
October 31, 2011 | | | 10.09 | | | | .58 | | | | (.21 | ) | | | .37 | | | | (.10 | ) | | | — | (f) |
October 31, 2010(7) | | | 10.00 | | | | .03 | | | | .06 | | | | .09 | | | | — | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 218 | | | Russell Global Opportunistic Credit Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | % Ratio of Net
Investment Income
to Average Net
Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.63 | ) | | | 10.31 | | | | 6.48 | | | | 5,993 | | | | 1.55 | | | | 1.18 | | | | 6.12 | | | | 52 | |
| | (.09 | ) | | | 10.32 | | | | 3.24 | | | | 2,468 | | | | 1.57 | | | | 1.20 | | | | 5.58 | | | | 126 | |
| | — | | | | 10.09 | | | | .90 | | | | 234 | | | | 1.88 | | | | 1.51 | | | | 3.13 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.57 | ) | | | 10.27 | | | | 6.15 | | | | 5,220 | | | | 2.30 | | | | 1.93 | | | | 5.37 | | | | 52 | |
| | (.08 | ) | | | 10.25 | | | | 2.51 | | | | 3,432 | | | | 2.32 | | | | 1.95 | | | | 4.78 | | | | 126 | |
| | — | | | | 10.08 | | | | .80 | | | | 664 | | | | 2.63 | | | | 2.26 | | | | 2.53 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.63 | ) | | | 10.32 | | | | 6.51 | | | | 14,960 | | | | 1.55 | | | | 1.18 | | | | 6.10 | | | | 52 | |
| | (.09 | ) | | | 10.32 | | | | 3.22 | | | | 14,029 | | | | 1.57 | | | | 1.20 | | | | 5.53 | | | | 126 | |
| | — | | | | 10.09 | | | | .90 | | | | 885 | | | | 1.88 | | | | 1.51 | | | | 3.80 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.65 | ) | | | 10.34 | | | | 6.61 | | | | 463,542 | | | | 1.30 | | | | .93 | | | | 6.35 | | | | 52 | |
| | (.10 | ) | | | 10.35 | | | | 3.57 | | | | 412,737 | | | | 1.32 | | | | .95 | | | | 5.71 | | | | 126 | |
| | — | | | | 10.09 | | | | .90 | | | | 247,804 | | | | 1.63 | | | | 1.26 | | | | 3.58 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.65 | ) | | | 10.35 | | | | 6.69 | | | | 369,150 | | | | 1.12 | | | | .84 | | | | 6.43 | | | | 52 | |
| | (.10 | ) | | | 10.36 | | | | 3.69 | | | | 344,443 | | | | 1.14 | | | | .86 | | | | 5.73 | | | | 126 | |
| | — | | | | 10.09 | | | | .90 | | | | 370,496 | | | | 1.46 | | | | 1.18 | | | | 3.37 | | | | 4 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Opportunistic Credit Fund | | 219 |
Russell Investment Company
Russell Strategic Bond Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,040.02 | | | $ | 1,019.94 | |
Expenses Paid During Period* | | $ | 5.02 | | | $ | 4.97 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,036.15 | | | $ | 1,016.21 | |
Expenses Paid During Period* | | $ | 8.81 | | | $ | 8.72 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.74% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,040.50 | | | $ | 1,020.14 | |
Expenses Paid During Period* | | $ | 4.82 | | | $ | 4.77 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,041.96 | | | $ | 1,021.48 | |
Expenses Paid During Period* | | $ | 3.45 | | | $ | 3.42 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.68% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 220 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,041.16 | | | $ | 1,021.18 | |
Expenses Paid During Period* | | $ | 3.76 | | | $ | 3.72 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.74% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,042.44 | | | $ | 1,021.98 | |
Expenses Paid During Period* | | $ | 2.95 | | | $ | 2.92 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.58% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Strategic Bond Fund | | 221 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Long-Term Investments - 90.2% | |
| Asset-Backed Securities - 7.0% | |
Accredited Mortgage Loan Trust
Series 2005-4 Class A2D
0.559% due 12/25/35 (Ê) | | | 1,388 | | | | 940 | |
ACE Securities Corp.
Series 2005-HE5 Class M1
0.709% due 08/25/35 (Ê) | | | 730 | | | | 711 | |
Series 2005-SD3 Class A
0.639% due 08/25/45 (Ê) | | | 521 | | | | 496 | |
Series 2006-HE4 Class A2A
0.299% due 10/25/36 (Ê) | | | 153 | | | | 41 | |
Series 2006-OP2 Class A2C
0.389% due 08/25/36 (Ê) | | | 11,298 | | | | 4,400 | |
Ally Master Owner Trust
Series 2011-3 Class A2
1.810% due 05/15/16 | | | 9,515 | | | | 9,656 | |
Series 2012-1 Class A2
1.440% due 02/15/17 | | | 7,100 | | | | 7,129 | |
AmeriCredit Automobile Receivables Trust
Series 2010-1 Class B
3.720% due 11/17/14 | | | 1,105 | | | | 1,123 | |
Series 2010-4 Class A2
0.960% due 05/08/14 | | | 1,923 | | | | 1,924 | |
Series 2010-4 Class B
1.990% due 10/08/15 | | | 3,505 | | | | 3,535 | |
Series 2011-2 Class A3
1.610% due 10/08/15 | | | 3,790 | | | | 3,823 | |
Series 2011-3 Class B
2.280% due 06/08/16 | | | 7,160 | | | | 7,281 | |
Series 2012-2 Class A1
0.300% due 05/08/13 | | | 14,020 | | | | 14,020 | |
Ameriquest Mortgage Securities, Inc.
Series 2004-R10 Class A5
0.629% due 11/25/34 (Ê) | | | 2 | | | | 2 | |
Series 2005-R3 Class A1A
0.439% due 05/25/35 (Ê) | | | 1,114 | | | | 1,103 | |
Series 2005-R6 Class A2
0.439% due 08/25/35 (Ê) | | | 3,980 | | | | 3,823 | |
Argent Securities, Inc.
Series 2005-W2 Class A2B1
0.439% due 10/25/35 (Ê) | | | 3,463 | | | | 3,144 | |
Series 2005-W2 Class A2B2
0.499% due 10/25/35 (Ê) | | | 619 | | | | 560 | |
Series 2005-W5 Class A2D
0.559% due 01/25/36 (Ê) | | | 7,650 | | | | 2,855 | |
Asset Backed Funding Certificates
Series 2006-HE1 Class A2C
0.399% due 01/25/37 (Ê) | | | 21,085 | | | | 7,346 | |
Asset Backed Securities Corp. Home Equity
Series 2004-HE6 Class A1
0.514% due 09/25/34 (Ê) | | | 80 | | | | 72 | |
Series 2006-HE3 Class A4
0.409% due 03/25/36 (Ê) | | | 3,290 | | | | 2,458 | |
Series 2006-HE5 Class A5
0.479% due 07/25/36 (Ê) | | | 8,729 | | | | 3,147 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Bayview Financial Acquisition Trust
Series 2004-C Class A1
0.869% due 05/28/44 (Ê) | | | 184 | | | | 170 | |
Series 2006-A Class 1A3
5.865% due 02/28/41 | | | 1,880 | | | | 1,621 | |
Bear Stearns Asset Backed Securities Trust
Series 2007-HE5 Class 1A2
0.419% due 06/25/47 (Ê) | | | 3,500 | | | | 2,586 | |
BNC Mortgage Loan Trust
Series 2007-2 Class A2
0.339% due 05/25/37 (Ê) | | | 304 | | | | 274 | |
Brazos Higher Education Authority
Series 2005-3 Class A14
0.584% due 09/25/23 (Ê) | | | 4,833 | | | | 4,763 | |
Series 2010-1 Class A2
1.691% due 02/25/35 (Ê) | | | 5,000 | | | | 4,750 | |
Series 2011-2 Class A2
1.316% due 07/25/29 (Ê) | | | 9,200 | | | | 9,059 | |
CarMax Auto Owner Trust
Series 2010-1 Class A3
1.560% due 07/15/14 | | | 2,049 | | | | 2,056 | |
Carrington Mortgage Loan Trust
Series 2006-NC1 Class A4
0.549% due 01/25/36 (Ê) | | | 18,100 | | | | 7,434 | |
Centex Home Equity
Series 2002-D Class AF4
5.210% due 11/25/28 | | | 111 | | | | 110 | |
Series 2006-A Class AV4
0.489% due 06/25/36 (Ê) | | | 1,800 | | | | 1,035 | |
Chase Issuance Trust
Series 2007-A17 Class A
5.120% due 10/15/14 | | | 3,105 | | | | 3,173 | |
Series 2008-A8
1.439% due 05/15/17 (Ê) | | | 2,500 | | | | 2,580 | |
CIT Education Loan Trust
Series 2007-1 Class A
0.564% due 03/25/42 (Ê)(Þ) | | | 5,292 | | | | 4,818 | |
CIT Mortgage Loan Trust
Series 2007-1 Class 2A1
1.239% due 10/25/37 (Ê)(Þ) | | | 406 | | | | 403 | |
Series 2007-1 Class 2A2
1.489% due 10/25/37 (Ê)(Þ) | | | 2,100 | | | | 1,642 | |
Series 2007-1 Class 2A3
1.689% due 10/25/37 (Å)(Ê) | | | 3,900 | | | | 1,766 | |
Citibank Credit Card Issuance Trust
Series 2008-A5 Class A5
4.850% due 04/22/15 | | | 4,555 | | | | 4,747 | |
Citibank Omni Master Trust
Series 2009-A8 Class A8
2.340% due 05/16/16 (Ê)(Þ) | | | 6,300 | | | | 6,305 | |
Citicorp Residential Mortgage Securities, Inc.
Series 2007-1 Class A5
6.046% due 03/25/37 | | | 954 | | | | 706 | |
Citigroup Mortgage Loan Trust, Inc.
Series 2006-WFH3 Class A3
0.389% due 10/25/36 (Ê) | | | 2,237 | | | | 2,109 | |
| | | | |
| | 222 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2007-AHL3 Class A3A
0.299% due 07/25/45 (Ê) | | | 845 | | | | 596 | |
Series 2007-AMC4 Class A2A
0.299% due 05/25/37 (Ê) | | | 315 | | | | 304 | |
Series 2007-WFH1 Class A4
0.439% due 01/25/37 (Ê) | | | 11,880 | | | | 5,569 | |
Conseco Finance Home Loan Trust
Series 2000-E Class M1
8.130% due 08/15/31 | | | 335 | | | | 325 | |
Conseco Finance Securitizations Corp.
Series 2001-4 Class A4
7.360% due 08/01/32 | | | 3,313 | | | | 3,516 | |
Conseco Financial Corp.
Series 1997-5 Class A6
6.820% due 05/15/29 | | | 194 | | | | 203 | |
Series 1997-7 Class A6
6.760% due 07/15/29 | | | 466 | | | | 501 | |
Countrywide Asset-Backed Certificates
Series 2004-6 Class 2A5
0.629% due 11/25/34 (Ê) | | | 362 | | | | 335 | |
Series 2005-4 Class AF3
4.456% due 10/25/35 | | | 233 | | | | 225 | |
Series 2005-7 Class AF3
4.454% due 10/25/35 | | | 4 | | | | 4 | |
Series 2005-12 Class 2A3
5.069% due 02/25/36 | | | 561 | | | | 507 | |
Series 2005-17 Class 4A2A
0.499% due 05/25/36 (Ê) | | | 1,917 | | | | 1,838 | |
Series 2006-3 Class 2A2
0.419% due 06/25/36 (Ê) | | | 2,478 | | | | 2,040 | |
Series 2006-11 Class 1AF3
5.692% due 09/25/46 | | | 1,906 | | | | 1,281 | |
Series 2006-13 Class 1AF3
5.944% due 01/25/37 | | | 3,841 | | | | 2,436 | |
Series 2006-BC1 Class 2A2
0.419% due 04/25/36 (Ê) | | | 151 | | | | 144 | |
Series 2006-S1 Class A2
5.549% due 08/25/21 | | | 57 | | | | 52 | |
Series 2007-4 Class A2
5.530% due 09/25/37 | | | 3,572 | | | | 3,182 | |
Series 2007-7 Class 2A1
0.319% due 10/25/47 (Ê) | | | 45 | | | | 45 | |
Countrywide Home Equity Loan Trust
Series 2006-HW Class 2A1B
0.390% due 11/15/36 (Ê) | | | 2,167 | | | | 1,590 | |
Credit-Based Asset Servicing and Securitization LLC
Series 2003-CB6 Class M1
0.939% due 12/25/33 (Ê) | | | 4,814 | | | | 3,883 | |
Series 2004-CB7 Class AF5
4.585% due 10/25/34 | | | 770 | | | | 758 | |
Series 2007-CB3 Class A1
5.225% due 03/25/37 | | | 14,777 | | | | 5,251 | |
DT Auto Owner Trust
Series 2009-1 Class A1
2.980% due 10/15/15 (Þ) | | | 1,272 | | | | 1,276 | |
Series 2011-3A Class A
1.400% due 08/15/14 (Þ) | | | 3,849 | | | | 3,854 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2012-1A Class A
1.060% due 01/15/15 (Å) | | | 8,920 | | | | 8,920 | |
Education Funding Capital Trust I
Series 2004-1 Class A2
0.634% due 12/15/22 (Ê) | | | 1,989 | | | | 1,974 | |
Educational Services of America, Inc.
Series 2010-1 Class A1
1.316% due 07/25/23 (Ê)(Þ) | | | 2,810 | | | | 2,793 | |
Equifirst Mortgage Loan Trust
Series 2003-2 Class M2
1.939% due 09/25/33 (Ê) | | | 2,476 | | | | 2,102 | |
Fannie Mae Grantor Trust
Series 2003-T4 Class 2A5
5.407% due 09/26/33 | | | 710 | | | | 753 | |
Fannie Mae REMICS
Series 1996-46 Class ZA
7.500% due 11/25/26 | | | 157 | | | | 178 | |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2000-30 Class A5
6.602% due 12/25/30 | | | 487 | | | | 529 | |
First Franklin Mortgage Loan Asset Backed Certificates
Series 2005-FF3 Class M1
0.639% due 04/25/35 (Ê) | | | 2,097 | | | | 2,032 | |
Series 2005-FF5 Class M1
0.689% due 03/25/35 (Ê) | | | 2,513 | | | | 2,357 | |
Series 2007-FF1 Class A2B
0.329% due 01/25/38 (Ê) | | | 14,017 | | | | 7,217 | |
Series 2007-FF1 Class A2C
0.379% due 01/25/38 (Ê) | | | 15,010 | | | | 6,557 | |
First NLC Trust
Series 2005-2 Class AV2
0.539% due 09/25/35 (Ê) | | | 34 | | �� | | 34 | |
Ford Credit Floorplan Master Owner Trust
Series 2010-5 Class A1
1.500% due 09/15/15 | | | 4,380 | | | | 4,418 | |
Freddie Mac REMICS
Series 1991-1037 Class Z
9.000% due 02/15/21 | | | 29 | | | | 29 | |
Series 1994-1730 Class Z
7.000% due 05/15/24 | | | 194 | | | | 226 | |
Fremont Home Loan Trust
Series 2006-E Class 2A1
0.299% due 01/25/37 (Ê) | | | 22 | | | | 22 | |
GCO Education Loan Funding Trust
Series 2006-1 Class A10L
0.681% due 02/27/28 (Ê) | | | 700 | | | | 598 | |
Series 2006-1 Class A11L
0.721% due 05/25/36 (Ê) | | | 1,400 | | | | 1,141 | |
Series 2006-1 Class A8L
0.621% due 05/25/25 (Ê) | | | 5,100 | | | | 4,636 | |
GMAC Mortgage Corp. Loan Trust
Series 2007-HE3 Class 1A1
7.000% due 09/25/37 | | | 697 | | | | 506 | |
Series 2007-HE3 Class 2A1
7.000% due 09/25/37 | | | 967 | | | | 654 | |
| | |
| Russell Strategic Bond Fund | | 223 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Goal Capital Funding Trust
Series 2010-1 Class A
1.191% due 08/25/48 (Ê)(Þ) | | | 3,089 | | | | 2,972 | |
Government National Mortgage Association
Series 1998-23 Class ZA
6.500% due 09/20/28 | | | 978 | | | | 1,147 | |
Green Tree Financial Corp.
Series 1994-1 Class A5
7.650% due 04/15/19 | | | 1,209 | | | | 1,277 | |
GSAA Trust
Series 2006-2 Class 2A3
0.509% due 12/25/35 (Ê) | | | 3,270 | | | | 3,007 | |
GSAMP Trust
Series 2007-FM1 Class A2A
0.309% due 12/25/36 (Ê) | | | 689 | | | | 456 | |
Home Equity Asset Trust
Series 2005-6 Class M1
0.709% due 12/25/35 (Ê) | | | 525 | | | | 401 | |
HSBC Home Equity Loan Trust
Series 2005-1 Class A
0.530% due 01/20/34 (Ê) | | | 1,899 | | | | 1,742 | |
Series 2006-2 Class A1
0.390% due 03/20/36 (Ê) | | | 3,427 | | | | 3,169 | |
Series 2007-1 Class AS
0.440% due 03/20/36 (Ê) | | | 3,050 | | | | 2,602 | |
Series 2007-2 Class A3V
0.460% due 07/20/36 (Ê) | | | 5,360 | | | | 4,857 | |
Series 2007-3 Class APT
1.440% due 11/20/36 (Ê) | | | 3,549 | | | | 3,197 | |
HSI Asset Securitization Corp. Trust
Series 2007-WF1 Class 2A4
0.489% due 05/25/37 (Ê) | | | 9,069 | | | | 3,926 | |
Indymac Residential Asset Backed Trust
Series 2006-H2 Class A
0.389% due 06/28/36 (Ê) | | | 1,227 | | | | 522 | |
JPMorgan Mortgage Acquisition Corp.
Series 2007-CH1 Class AV4
0.369% due 11/25/36 (Ê) | | | 2,777 | | | | 2,227 | |
Series 2007-CH1 Class MV1
0.469% due 11/25/36 (Ê) | | | 2,374 | | | | 1,133 | |
Series 2007-CH2 Class AV4
0.389% due 01/25/37 (Ê) | | | 22,370 | | | | 10,596 | |
Series 2007-HE1 Class AV1
0.299% due 03/25/47 (Ê) | | | 124 | | | | 104 | |
Series 2007-HE1 Class AV3
0.429% due 03/25/47 (Ê) | | | 9,263 | | | | 3,077 | |
KnowledgeWorks Foundation
Series 2010-1 Class A
1.441% due 02/25/42 (Ê) | | | 1,941 | | | | 1,876 | |
Lehman XS Trust
Series 2006-9 Class A1B
0.399% due 05/25/46 (Ê) | | | 1,730 | | | | 1,155 | |
Series 2006-13 Class 1A2
0.409% due 09/25/36 (Ê) | | | 1,643 | | | | 1,045 | |
Series 2006-19 Class A2
0.409% due 12/25/36 (Ê) | | | 2,451 | | | | 1,573 | |
Series 2006-4N Class A2A
0.459% due 04/25/46 (Ê) | | | 2,881 | | | | 1,498 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Long Beach Mortgage Loan Trust
Series 2002-5 Class M1
1.484% due 11/25/32 (Ê) | | | 2,421 | | | | 1,721 | |
Series 2004-4 Class 1A1
0.799% due 10/25/34 (Ê) | | | 39 | | | | 31 | |
Series 2004-4 Class M1
1.139% due 10/25/34 (Ê) | | | 10,600 | | | | 8,504 | |
Series 2004-6 Class A3
1.539% due 11/25/34 (Ê) | | | 4,284 | | | | 3,334 | |
Massachusetts Educational Financing Authority
Series 2008-1 Class A1
1.416% due 04/25/38 (Ê) | | | 3,340 | | | | 3,335 | |
Mastr Asset Backed Securities Trust
Series 2005-WMC1 Class M2
0.689% due 03/25/35 (Ê) | | | 3,544 | | | | 3,154 | |
Series 2006-AB1 Class A2
0.469% due 02/25/36 (Ê) | | | 6,008 | | | | 5,218 | |
Series 2007-HE1 Class A1
0.319% due 05/25/37 (Ê) | | | 203 | | | | 191 | |
Mid-State Trust
Series 2010-1 Class M
5.250% due 12/15/45 (Þ) | | | 4,094 | | | | 4,134 | |
Missouri Higher Education Loan Authority
Series 2010-1 Class A1
1.441% due 11/26/32 (Ê) | | | 5,277 | | | | 5,234 | |
Morgan Stanley ABS Capital I
Series 2006-HE1 Class A3
0.419% due 01/25/36 (Ê) | | | 2,470 | | | | 2,322 | |
Series 2006-HE5 Class A2D
0.489% due 08/25/36 (Ê) | | | 3,650 | | | | 1,228 | |
Series 2006-NC2 Class A2D
0.529% due 02/25/36 (Ê) | | | 11,837 | | | | 4,877 | |
Series 2006-WMC2 Class A2FP
0.289% due 07/25/36 (Ê) | | | 54 | | | | 16 | |
Series 2007-HE5 Class A2C
0.489% due 03/25/37 (Ê) | | | 3,000 | | | | 994 | |
Morgan Stanley IXIS Real Estate Capital Trust
Series 2006-2 Class A1
0.289% due 11/25/36 (Ê) | | | 4 | | | | 1 | |
Nationstar Home Equity Loan Trust
Series 2007-A Class AV4
0.469% due 03/25/37 (Ê) | | | 6,789 | | | | 3,290 | |
New Century Home Equity Loan Trust
Series 2005-A Class A5
5.119% due 08/25/35 | | | 2,621 | | | | 1,428 | |
Nissan Auto Receivables Owner Trust
Series 2009-1 Class A3
5.000% due 09/15/14 | | | 889 | | | | 895 | |
Northstar Education Finance, Inc.
Series 2005-1 Class A1
0.566% due 10/28/26 (Ê) | | | 709 | | | | 704 | |
Series 2007-1 Class A3
0.526% due 01/29/46 (Ê) | | | 4,850 | | | | 4,317 | |
Series 2007-1 Class A6
1.138% due 01/29/46 (Ê) | | | 975 | | | | 775 | |
| | | | |
| | 224 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2007-1 Class A8
1.137% due 01/29/46 (Ê) | | | 1,525 | | | | 1,228 | |
Option One Mortgage Loan Trust
Series 2005-4 Class A3
0.499% due 11/25/35 (Ê) | | | 163 | | | | 156 | |
Series 2007-4 Class 2A2
0.419% due 04/25/37 (Ê) | | | 9,778 | | | | 4,640 | |
Panhandle-Plains Higher Education Authority, Inc.
Series 2010-2 Class A1
1.598% due 10/01/35 (Ê) | | | 3,985 | | | | 3,975 | |
Series 2011-1 Class A3
1.418% due 10/01/37 (Ê) | | | 2,500 | | | | 2,354 | |
Park Place Securities, Inc.
Series 2004-MHQ1 Class M1
0.939% due 12/25/34 (Ê) | | | 449 | | | | 446 | |
Series 2004-WWF1 Class M2
0.919% due 12/25/34 (Ê) | | | 8,402 | | | | 8,248 | |
Series 2005-WHQ2 Class A2D
0.569% due 05/25/35 (Ê) | | | 4,612 | | | | 4,449 | |
Series 2005-WLL1 Class M1
0.659% due 03/25/35 (Ê) | | | 1,788 | | | | 1,676 | |
People’s Choice Home Loan Securities Trust
Series 2005-3 Class M1
0.739% due 08/25/35 (Ê) | | | 1,267 | | | | 1,194 | |
Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.399% due 01/25/36 | | | 1,045 | | | | 728 | |
Series 2006-C Class A4
0.489% due 07/25/36 (Ê) | | | 14,824 | | | | 8,918 | |
Series 2006-D Class A3
0.499% due 11/25/46 (Ê) | | | 3,814 | | | | 1,915 | |
Renaissance Home Equity Loan Trust
Series 2005-2 Class AF4
4.934% due 08/25/35 | | | 815 | | | | 636 | |
Series 2005-4 Class A3
5.565% due 02/25/36 | | | 191 | | | | 163 | |
Series 2006-1 Class AF3
5.608% due 05/25/36 | | | 77 | | | | 45 | |
Series 2006-1 Class AF6
5.746% due 05/25/36 | | | 1,668 | | | | 1,079 | |
Series 2006-2 Class AF2
5.762% due 08/25/36 | | | 265 | | | | 172 | |
Series 2007-1 Class AF2
5.512% due 04/25/37 | | | 6,125 | | | | 2,440 | |
Series 2007-2 Class AF2
5.675% due 06/25/37 | | | 1,855 | | | | 767 | |
Series 2007-2 Class AF4
5.906% due 06/25/37 | | | 5,423 | | | | 2,327 | |
Series 2007-2 Class AF6
5.879% due 06/25/37 | | | 2,256 | | | | 980 | |
Series 2007-3 Class AF2
6.998% due 09/25/37 | | | 4,352 | | | | 1,871 | |
Residential Asset Mortgage Products, Inc.
Series 2003-RS11 Class AI6A
5.980% due 12/25/33 | | | 1,138 | | | | 1,041 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2006-RS1 Class AI2
0.469% due 01/25/36 (Ê) | | | 1,727 | | | | 1,367 | |
Series 2007-RS2 Class A1
0.359% due 05/25/37 (Ê) | | | 22 | | | | 22 | |
Residential Asset Securities Corp.
Series 2001-KS3 Class AII
0.699% due 09/25/31 (Ê) | | | 143 | | | | 110 | |
Series 2003-KS4 Class AIIB
0.819% due 06/25/33 (Ê) | | | 210 | | | | 120 | |
Series 2005-AHL1 Class A2
0.509% due 07/25/35 (Ê) | | | 122 | | | | 121 | |
Series 2005-KS10 Class 1A2
0.489% due 11/25/35 (Ê) | | | 148 | | | | 146 | |
Series 2005-KS12 Class A2
0.489% due 01/25/36 (Ê) | | | 3,399 | | | | 3,239 | |
Series 2005-KS12 Class A3
0.559% due 01/25/36 (Ê) | | | 894 | | | | 698 | |
Series 2006-KS3 Class AI3
0.409% due 04/25/36 (Ê) | | | 258 | | | | 236 | |
Santander Drive Auto Receivables Trust
Series 2010-2 Class A2
0.950% due 08/15/13 | | | 1,960 | | | | 1,960 | |
Series 2010-A Class A2
1.370% due 08/15/13 (Þ) | | | 3,231 | | | | 3,235 | |
Series 2010-B Class A2
1.010% due 07/15/13 (Þ) | | | 1,870 | | | | 1,871 | |
Series 2011-2 Class B
2.660% due 01/15/16 | | | 2,900 | | | | 2,914 | |
Series 2011-3 Class B
2.500% due 12/15/15 | | | 8,415 | | | | 8,520 | |
Series 2012-1 Class B
2.720% due 05/16/16 | | | 5,375 | | | | 5,468 | |
Series 2012-2 Class B
2.090% due 08/15/16 | | | 6,840 | | | | 6,858 | |
Securitized Asset Backed Receivables LLC
Series 2007-BR2 Class A2
0.469% due 02/25/37 (Ê) | | | 3,592 | | | | 1,257 | |
Series 2007-HE1 Class A2A
0.299% due 12/25/36 (Ê) | | | 785 | | | | 176 | |
Series 2007-NC1 Class A2B
0.389% due 12/25/36 (Ê) | | | 9,135 | | | | 3,243 | |
SG Mortgage Securities Trust
Series 2006-FRE1 Class A2B
0.419% due 02/25/36 (Ê) | | | 4,669 | | | | 2,213 | |
Series 2006-OPT2 Class A3C
0.389% due 10/25/36 (Ê) | | | 15,160 | | | | 4,767 | |
SLM Student Loan Trust
Series 2003-12 Class A4
0.664% due 12/17/18 (Ê) | | | 958 | | | | 957 | |
Series 2006-5 Class A6B
0.586% due 10/25/40 (Ê) | | | 5,100 | | | | 4,580 | |
Series 2008-7 Class A2
0.966% due 10/25/17 (Ê) | | | 29,226 | | | | 29,138 | |
Series 2011-A Class A2
4.370% due 04/17/28 (Þ) | | | 3,605 | | | | 3,764 | |
Series 2011-B Class A2
3.740% due 02/15/29 (Þ) | | | 9,330 | | | | 9,412 | |
| | |
| Russell Strategic Bond Fund | | 225 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2012-A Class A2
3.830% due 01/17/45 (Þ) | | | 6,290 | | | | 6,376 | |
Series 2012-B Class A2
3.480% due 10/15/30 (Å) | | | 4,600 | | | | 4,625 | |
Small Business Administration Participation Certificates
Series 1997-20D Class 1
7.500% due 04/01/17 | | | 444 | | | | 488 | |
Series 2004-20F Class 1
5.520% due 06/01/24 | | | 178 | | | | 200 | |
Series 2005-20G Class 1
4.750% due 07/01/25 | | | 2,380 | | | | 2,622 | |
Soundview Home Equity Loan Trust
Series 2005-DO1 Class M2
0.689% due 05/25/35 (Ê) | | | 892 | | | | 842 | |
Series 2005-OPT4 Class 2A3
0.499% due 12/25/35 (Ê) | | | 16,072 | | | | 14,617 | |
Series 2006-EQ2 Class A3
0.399% due 01/25/37 (Ê) | | | 17,529 | | | | 6,393 | |
Series 2006-OPT5 Class 2A4
0.479% due 07/25/36 (Ê) | | | 10,125 | | | | 3,641 | |
Series 2006-OPT5 Class M3
0.559% due 07/25/36 (Ê) | | | 635 | | | | 2 | |
Series 2007-OPT1 Class 2A1
0.319% due 06/25/37 (Ê) | | | 628 | | | | 517 | |
Specialty Underwriting & Residential Finance
Series 2005-AB2 Class A1C
0.629% due 06/25/36 (Ê) | | | 2,371 | | | | 2,258 | |
Series 2005-BC4 Class A2B
0.469% due 09/25/36 (Ê) | | | 299 | | | | 296 | |
Structured Asset Investment Loan Trust
Series 2005-5 Class M1
0.659% due 06/25/35 (Ê) | | | 1,852 | | | | 1,640 | |
Structured Asset Securities Corp.
Series 2005-2XS Class 1A2A
4.510% due 02/25/35 | | | 70 | | | | 70 | |
Series 2005-4XS Class 2A1A
1.989% due 03/25/35 (Ê) | | | 1,900 | | | | 1,468 | |
Series 2005-GEL1 Class A
0.589% due 12/25/34 (Ê) | | | 74 | | | | 73 | |
Series 2006-WF2 Class A3
0.389% due 07/25/36 (Ê) | | | 5,724 | | | | 5,577 | |
Series 2007-BC2 Class A3
0.369% due 03/25/37 (Ê) | | | 5,596 | | | | 4,216 | |
Series 2007-BC3 Class 2A1
0.299% due 05/25/47 (Ê) | | | 3,961 | | | | 3,708 | |
SunTrust Student Loan Trust
Series 2006-1A Class A4
0.656% due 10/28/37 (Ê)(Þ) | | | 5,000 | | | | 4,224 | |
US Education Loan Trust LLC
Series 2006-1 Class A2
0.618% due 03/01/25 (Ê)(Þ) | | | 1,065 | | | | 1,032 | |
Washington Mutual Asset-Backed Certificates
Series 2006-HE2 Class A3
0.389% due 05/25/36 (Ê) | | | 4,930 | | | | 2,431 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Westchester CLO, Ltd.
Zero coupon due 08/01/22 (Å) | | | 13,011 | | | | 11,930 | |
| | | | | | | | |
| | | | | | | 565,435 | |
| | | | | | | | |
| |
| Corporate Bonds and Notes - 17.5% | | | | | |
ACCO Brands Corp.
10.625% due 03/15/15 | | | 3,445 | | | | 3,757 | |
Ally Financial, Inc.
4.500% due 02/11/14 | | | 1,000 | | | | 1,010 | |
3.874% due 06/20/14 (Ê) | | | 900 | | | | 887 | |
Alta Wind Holdings LLC
7.000% due 06/30/35 (Þ) | | | 1,889 | | | | 2,070 | |
Alterra USA Holdings, Ltd.
7.200% due 04/14/17 (Þ) | | | 2,535 | | | | 2,651 | |
Altria Group, Inc.
9.700% due 11/10/18 | | | 3,825 | | | | 5,194 | |
10.200% due 02/06/39 | | | 2,580 | | | | 4,133 | |
American Express Bank FSB
Series BKNT
6.000% due 09/13/17 | | | 600 | | | | 709 | |
American Express Centurion Bank
Series BKN1
6.000% due 09/13/17 | | | 600 | | | | 708 | |
American Express Co.
7.000% due 03/19/18 | | | 400 | | | | 495 | |
American Express Credit Corp.
5.875% due 05/02/13 | | | 2,000 | | | | 2,099 | |
2.375% due 03/24/17 | | | 4,500 | | | | 4,588 | |
American International Group, Inc.
4.250% due 05/15/13 | | | 10,300 | | | | 10,507 | |
5.050% due 10/01/15 | | | 400 | | | | 428 | |
4.875% due 09/15/16 | | | 7,160 | | | | 7,636 | |
5.450% due 05/18/17 | | | 1,075 | | | | 1,165 | |
5.850% due 01/16/18 | | | 8,500 | | | | 9,348 | |
8.250% due 08/15/18 | | | 9,100 | | | | 11,026 | |
6.400% due 12/15/20 | | | 1,350 | | | | 1,551 | |
Ameriprise Financial, Inc.
7.518% due 06/01/66 | | | 3,420 | | | | 3,625 | |
AmerisourceBergen Corp.
5.875% due 09/15/15 | | | 2,495 | | | | 2,863 | |
Amgen, Inc.
6.150% due 06/01/18 | | | 5,600 | | | | 6,791 | |
Anadarko Petroleum Corp.
6.375% due 09/15/17 | | | 11,960 | | | | 14,213 | |
8.700% due 03/15/19 | | | 2,200 | | | | 2,927 | |
6.450% due 09/15/36 | | | 4,630 | | | | 5,490 | |
Anheuser-Busch Cos., Inc.
5.500% due 01/15/18 | | | 3,535 | | | | 4,206 | |
Anheuser-Busch InBev Worldwide, Inc.
4.125% due 01/15/15 (Ñ) | | | 5,400 | | | | 5,859 | |
7.750% due 01/15/19 | | | 5,875 | | | | 7,773 | |
Apache Corp.
3.250% due 04/15/22 | | | 4,130 | | | | 4,264 | |
Arch Coal, Inc.
8.750% due 08/01/16 | | | 610 | | | | 612 | |
7.000% due 06/15/19 (Ñ)(Þ) | | | 3,370 | | | | 3,016 | |
| | | | |
| | 226 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Aristotle Holding, Inc.
4.750% due 11/15/21 (Þ) | | | 2,515 | | | | 2,752 | |
3.900% due 02/15/22 (Þ) | | | 3,225 | | | | 3,319 | |
Arizona Public Service Co.
6.250% due 08/01/16 | | | 675 | | | | 795 | |
8.750% due 03/01/19 | | | 1,250 | | | | 1,658 | |
Ashtead Capital, Inc.
9.000% due 08/15/16 (Þ) | | | 1,950 | | | | 2,035 | |
AT&T Corp.
8.000% due 11/15/31 | | | 1,184 | | | | 1,697 | |
AT&T, Inc.
2.950% due 05/15/16 | | | 5,830 | | | | 6,190 | |
6.300% due 01/15/38 | | | 1,200 | | | | 1,438 | |
6.400% due 05/15/38 | | | 3,375 | | | | 4,099 | |
Bank of America Corp.
7.375% due 05/15/14 | | | 5,300 | | | | 5,744 | |
4.750% due 08/01/15 | | | 5,235 | | | | 5,463 | |
3.625% due 03/17/16 | | | 875 | | | | 872 | |
6.500% due 08/01/16 | | | 3,500 | | | | 3,827 | |
5.625% due 10/14/16 | | | 4,680 | | | | 4,973 | |
6.000% due 09/01/17 | | | 8,105 | | | | 8,670 | |
5.750% due 12/01/17 | | | 4,095 | | | | 4,342 | |
5.875% due 01/05/21 | | | 1,075 | | | | 1,125 | |
5.700% due 01/24/22 | | | 5,500 | | | | 5,774 | |
Bank of America NA
Series BKNT
0.754% due 06/15/16 (Ê) | | | 3,100 | | | | 2,749 | |
0.774% due 06/15/17 (Ê)(Ñ) | | | 4,175 | | | | 3,615 | |
6.100% due 06/15/17 | | | 3,845 | | | | 4,107 | |
6.000% due 10/15/36 | | | 500 | | | | 485 | |
BB&T Corp.
3.200% due 03/15/16 | | | 4,050 | | | | 4,296 | |
2.150% due 03/22/17 | | | 4,905 | | | | 4,927 | |
Bear Stearns Cos. LLC (The)
5.550% due 01/22/17 | | | 2,961 | | | | 3,282 | |
7.250% due 02/01/18 | | | 1,150 | | | | 1,399 | |
Boardwalk Pipelines, LP
5.875% due 11/15/16 | | | 3,250 | | | | 3,656 | |
Boston Scientific Corp.
4.500% due 01/15/15 | | | 4,813 | | | | 5,174 | |
Braskem America Finance Co.
7.125% due 07/22/41 (Þ) | | | 7,455 | | | | 7,492 | |
Burlington Northern and Santa Fe Railway Co. 2005-4 Pass Through Trust
4.967% due 04/01/23 | | | 154 | | | | 175 | |
Burlington Northern Santa Fe LLC
6.875% due 12/01/27 | | | 160 | | | | 198 | |
6.750% due 03/15/29 | | | 110 | | | | 136 | |
Calpine Construction Finance Co., LP and CCFC Finance Corp.
8.000% due 06/01/16 (Þ) | | | 8,155 | | | | 8,848 | |
Cameron International Corp.
1.414% due 06/02/14 (Ê) | | | 1,500 | | | | 1,502 | |
Capital One Bank USA NA
8.800% due 07/15/19 | | | 1,250 | | | | 1,579 | |
Capital One Capital III
7.686% due 08/15/36 | | | 2,675 | | | | 2,698 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Capital One Financial Corp.
7.375% due 05/23/14 | | | 1,964 | | | | 2,176 | |
2.150% due 03/23/15 | | | 4,850 | | | | 4,882 | |
Caterpillar, Inc.
0.663% due 05/21/13 (Ê) | | | 5,500 | | | | 5,517 | |
CBA Capital Trust II
6.024% due 03/29/49 (ƒ)(Þ) | | | 3,700 | | | | 3,484 | |
CCO Holdings LLC/CCO Holdings Capital Corp.
7.000% due 01/15/19 | | | 4,000 | | | | 4,280 | |
CEDC Finance Corp. International, Inc.
9.125% due 12/01/16 (Ñ)(Þ) | | | 1,670 | | | | 1,311 | |
Cellco Partnership/Verizon Wireless Capital LLC
7.375% due 11/15/13 | | | 3,830 | | | | 4,200 | |
8.500% due 11/15/18 | | | 2,750 | | | | 3,786 | |
CenterPoint Energy Resources Corp.
6.125% due 11/01/17 | | | 860 | | | | 1,004 | |
CF Industries, Inc.
6.875% due 05/01/18 | | | 2,400 | | | | 2,790 | |
Chase Capital III
Series C
1.038% due 03/01/27 (Ê) | | | 2,740 | | | | 2,095 | |
CHS/Community Health Systems, Inc.
8.875% due 07/15/15 (Ñ) | | | 2,741 | | | | 2,830 | |
8.000% due 11/15/19 (Ñ)(Þ) | | | 2,375 | | | | 2,512 | |
Chubb Corp. (The)
6.375% due 03/29/67 | | | 2,450 | | | | 2,508 | |
Cigna Corp.
2.750% due 11/15/16 | | | 2,000 | | | | 2,042 | |
5.375% due 02/15/42 | | | 3,265 | | | | 3,458 | |
CIT Group, Inc.
5.250% due 04/01/14 (Þ) | | | 1,000 | | | | 1,030 | |
7.000% due 05/02/17 (Þ) | | | 3,720 | | | | 3,729 | |
6.625% due 04/01/18 (Ñ)(Þ) | | | 3,155 | | | | 3,431 | |
Citigroup Capital XXI
8.300% due 12/21/57 | | | 9,335 | | | | 9,481 | |
Citigroup, Inc.
5.850% due 07/02/13 | | | 700 | | | | 730 | |
1.919% due 01/13/14 (Ê) | | | 2,700 | | | | 2,675 | |
5.000% due 09/15/14 | | | 6,525 | | | | 6,748 | |
4.750% due 05/19/15 | | | 1,400 | | | | 1,471 | |
4.700% due 05/29/15 | | | 350 | | | | 367 | |
5.300% due 01/07/16 | | | 1,325 | | | | 1,413 | |
5.850% due 08/02/16 | | | 1,630 | | | | 1,764 | |
4.450% due 01/10/17 | | | 19,710 | | | | 20,589 | |
6.000% due 08/15/17 | | | 6,000 | | | | 6,650 | |
6.125% due 11/21/17 | | | 6,395 | | | | 7,095 | |
6.125% due 05/15/18 | | | 200 | | | | 222 | |
8.500% due 05/22/19 | | | 500 | | | | 621 | |
4.500% due 01/14/22 | | | 2,425 | | | | 2,468 | |
1.041% due 08/25/36 (Ê) | | | 2,250 | | | | 1,489 | |
6.125% due 08/25/36 | | | 900 | | | | 890 | |
8.125% due 07/15/39 | | | 914 | | | | 1,191 | |
5.875% due 01/30/42 | | | 2,500 | | | | 2,659 | |
Comcast Corp.
5.700% due 05/15/18 | | | 3,230 | | | | 3,833 | |
6.450% due 03/15/37 | | | 300 | | | | 365 | |
| | |
| Russell Strategic Bond Fund | | 227 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Commonwealth Edison Co.
5.800% due 03/15/18 | | | 4,735 | | | | 5,723 | |
Continental Airlines 2006-1 Class G Pass Through Trust
Series 061G
0.834% due 06/02/13 (Ê) | | | 2,931 | | | | 2,829 | |
Continental Airlines 2009-1 Pass Through Trust
Series 09-1
9.000% due 07/08/16 | | | 3,097 | | | | 3,530 | |
Credit Suisse USA, Inc.
5.500% due 08/15/13 | | | 380 | | | | 399 | |
Crown Castle Towers LLC
3.214% due 08/15/15 (Þ) | | | 2,140 | | | | 2,176 | |
CSC Holdings LLC
8.500% due 04/15/14 | | | 4,223 | | | | 4,656 | |
CVS Caremark Corp.
3.250% due 05/18/15 | | | 4,800 | | | | 5,105 | |
DCP Midstream Operating, LP
3.250% due 10/01/15 | | | 4,519 | | | | 4,566 | |
DDR Corp.
9.625% due 03/15/16 | | | 1,440 | | | | 1,753 | |
7.500% due 04/01/17 | | | 3,800 | | | | 4,358 | |
Delta Air Lines 2002-1 Class G-1 Pass Through Trust
Series 02G1
6.718% due 01/02/23 | | | 3,271 | | | | 3,442 | |
Delta Air Lines, Inc.
9.500% due 09/15/14 (Ñ)(Þ) | | | 2,258 | | | | 2,399 | |
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.
3.500% due 03/01/16 | | | 13,110 | | | | 13,841 | |
3.800% due 03/15/22 (Å) | | | 10,805 | | | | 10,756 | |
6.000% due 08/15/40 | | | 1,350 | | | | 1,444 | |
Discover Bank
Series BKNT
8.700% due 11/18/19 | | | 4,475 | | | | 5,644 | |
Discover Financial Services
10.250% due 07/15/19 | | | 4,213 | | | | 5,731 | |
5.200% due 04/27/22 (Þ) | | | 4,213 | | | | 4,181 | |
Dow Chemical Co. (The)
7.600% due 05/15/14 | | | 5,450 | | | | 6,142 | |
Duquesne Light Holdings, Inc.
6.400% due 09/15/20 (Þ) | | | 2,700 | | | | 3,081 | |
Dynegy Roseton LLC/Dynegy Danskammer LLC Pass Through Trust
Series B
7.670% due 11/08/16 | | | 7,845 | | | | 5,099 | |
E*Trade Financial Corp.
12.500% due 11/30/17 | | | 3,791 | | | | 4,417 | |
Ecolab, Inc.
3.000% due 12/08/16 | | | 4,000 | | | | 4,213 | |
4.350% due 12/08/21 | | | 8,140 | | | | 8,876 | |
Edison Mission Energy
7.000% due 05/15/17 | | | 8,070 | | | | 5,044 | |
El Paso Corp.
Series GMTN
8.050% due 10/15/30 | | | 300 | | | | 344 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
El Paso Natural Gas Co.
7.500% due 11/15/26 | | | 1,425 | | | | 1,713 | |
El Paso Pipeline Partners Operating Co. LLC
6.500% due 04/01/20 | | | 5,880 | | | | 6,754 | |
Energy Transfer Partners, LP
6.700% due 07/01/18 | | | 2,575 | | | | 2,981 | |
5.200% due 02/01/22 | | | 1,725 | | | | 1,839 | |
Enterprise Products Operating LLC
5.250% due 01/31/20 | | | 6,860 | | | | 7,810 | |
Series A
8.375% due 08/01/66 | | | 2,950 | | | | 3,201 | |
Series B
7.034% due 01/15/68 | | | 3,050 | | | | 3,271 | |
ERP Operating, LP
4.625% due 12/15/21 | | | 3,325 | | | | 3,549 | |
Express Scripts Holding Co.
6.250% due 06/15/14 | | | 4,605 | | | | 5,063 | |
7.250% due 06/15/19 | | | 3,857 | | | | 4,826 | |
Farmers Exchange Capital
7.050% due 07/15/28 (Þ) | | | 5,625 | | | | 6,226 | |
Fifth Third Bancorp
3.625% due 01/25/16 | | | 4,150 | | | | 4,402 | |
First Chicago NBD Institutional Capital I
1.016% due 02/01/27 (Ê) | | | 1,250 | | | �� | 981 | |
First Niagara Financial Group, Inc.
6.750% due 03/19/20 | | | 1,850 | | | | 2,062 | |
First Union Capital II
Series A
7.950% due 11/15/29 | | | 1,265 | | | | 1,380 | |
Ford Motor Co.
7.125% due 11/15/25 | | | 100 | | | | 111 | |
6.375% due 02/01/29 | | | 100 | | | | 111 | |
Ford Motor Credit Co. LLC
7.000% due 10/01/13 | | | 3,000 | | | | 3,210 | |
7.000% due 04/15/15 | | | 300 | | | | 334 | |
5.875% due 08/02/21 | | | 400 | | | | 452 | |
FPL Energy Wind Funding LLC
6.876% due 06/27/17 (Þ) | | | 1,250 | | | | 1,000 | |
FUEL Trust
3.984% due 06/15/16 (Þ) | | | 6,530 | | | | 6,765 | |
GE Capital Trust I
6.375% due 11/15/67 | | | 2,610 | | | | 2,669 | |
General Electric Capital Corp.
5.900% due 05/13/14 | | | 2,040 | | | | 2,227 | |
5.375% due 10/20/16 | | | 1,000 | | | | 1,142 | |
0.797% due 08/07/18 (Ê) | | | 4,010 | | | | 3,695 | |
4.375% due 09/16/20 | | | 3,100 | | | | 3,322 | |
5.875% due 01/14/38 | | | 11,225 | | | | 12,550 | |
Series EMTN
0.623% due 03/20/14 (Ê) | | | 2,000 | | | | 1,957 | |
6.375% due 11/15/67 | | | 27,500 | | | | 28,291 | |
Series GMTN
6.150% due 08/07/37 | | | 3,035 | | | | 3,518 | |
6.875% due 01/10/39 | | | 750 | | | | 950 | |
Series MTNA
0.734% due 09/15/14 (Ê) | | | 10,845 | | | | 10,719 | |
6.750% due 03/15/32 | | | 623 | | | | 759 | |
| | | | |
| | 228 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
General Electric Co.
5.250% due 12/06/17 | | | 5,515 | | | | 6,436 | |
GenOn REMA LLC
Series B
9.237% due 07/02/17 | | | 3,011 | | | | 2,951 | |
Genworth Financial, Inc.
6.150% due 11/15/66 | | | 5,960 | | | | 3,643 | |
Georgia-Pacific LLC
8.875% due 05/15/31 | | | 5,555 | | | | 7,588 | |
Gilead Sciences, Inc.
3.050% due 12/01/16 | | | 2,705 | | | | 2,860 | |
4.400% due 12/01/21 | | | 6,815 | | | | 7,404 | |
GlaxoSmithKline Capital, Inc.
4.850% due 05/15/13 | | | 6,900 | | | | 7,218 | |
Goldman Sachs Group, Inc. (The)
6.000% due 05/01/14 | | | 2,000 | | | | 2,127 | |
3.300% due 05/03/15 | | | 1,700 | | | | 1,699 | |
0.924% due 03/22/16 (Ê) | | | 1,300 | | | | 1,179 | |
5.750% due 10/01/16 | | | 1,338 | | | | 1,447 | |
6.250% due 09/01/17 | | | 17,890 | | | | 19,462 | |
7.500% due 02/15/19 | | | 5,651 | | | | 6,537 | |
6.000% due 06/15/20 | | | 1,875 | | | | 2,006 | |
5.750% due 01/24/22 | | | 3,975 | | | | 4,151 | |
6.750% due 10/01/37 | | | 7,900 | | | | 7,815 | |
Great Plains Energy, Inc.
4.850% due 06/01/21 | | | 4,940 | | | | 5,337 | |
5.292% due 06/15/22 | | | 2,760 | | | | 3,017 | |
Hartford Financial Services Group, Inc.
5.125% due 04/15/22 | | | 2,455 | | | | 2,480 | |
HCA, Inc.
8.500% due 04/15/19 | | | 3,480 | | | | 3,904 | |
7.875% due 02/15/20 | | | 2,375 | | | | 2,636 | |
7.250% due 09/15/20 | | | 2,920 | | | | 3,234 | |
HCP, Inc.
6.300% due 09/15/16 | | | 2,700 | | | | 3,062 | |
6.000% due 01/30/17 | | | 2,250 | | | | 2,522 | |
6.700% due 01/30/18 | | | 4,000 | | | | 4,680 | |
5.375% due 02/01/21 | | | 1,800 | | | | 1,983 | |
Health Care REIT, Inc.
4.700% due 09/15/17 | | | 5,480 | | | | 5,804 | |
5.250% due 01/15/22 | | | 2,500 | | | | 2,647 | |
6.500% due 03/15/41 | | | 2,000 | | | | 2,140 | |
Healthcare Realty Trust, Inc.
6.500% due 01/17/17 | | | 3,350 | | | | 3,697 | |
Hewlett-Packard Co.
0.772% due 05/24/13 (Ê) | | | 6,400 | | | | 6,383 | |
3.000% due 09/15/16 | | | 2,850 | | | | 2,935 | |
2.600% due 09/15/17 | | | 6,320 | | | | 6,329 | |
4.650% due 12/09/21 | | | 9,095 | | | | 9,610 | |
Historic TW, Inc.
8.050% due 01/15/16 | | | 2,900 | | | | 3,398 | |
HRPT Properties Trust
5.750% due 02/15/14 | | | 2,710 | | | | 2,799 | |
HSBC Bank USA NA
4.875% due 08/24/20 | | | 3,021 | | | | 3,106 | |
HSBC Finance Corp.
6.676% due 01/15/21 | | | 6,120 | | | | 6,610 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
HSBC USA, Inc.
2.375% due 02/13/15 | | | 3,810 | | | | 3,852 | |
Humana, Inc.
6.450% due 06/01/16 | | | 1,875 | | | | 2,144 | |
8.150% due 06/15/38 | | | 2,756 | | | | 3,663 | |
Indiantown Cogeneration, LP
Series A-10
9.770% due 12/15/20 | | | 2,607 | | | | 2,716 | |
Intel Corp.
1.950% due 10/01/16 | | | 3,300 | | | | 3,415 | |
International Lease Finance Corp.
6.500% due 09/01/14 (Þ) | | | 15,545 | | | | 16,516 | |
4.875% due 04/01/15 | | | 5,695 | | | | 5,696 | |
5.750% due 05/15/16 | | | 400 | | | | 407 | |
6.750% due 09/01/16 (Þ) | | | 1,000 | | | | 1,080 | |
International Paper Co.
4.750% due 02/15/22 | | | 2,315 | | | | 2,471 | |
Ipalco Enterprises, Inc.
5.000% due 05/01/18 | | | 1,725 | | | | 1,716 | |
JetBlue Airways 2004-2 G-2 Pass Through Trust
Series 04-2
0.953% due 11/15/16 (Ê) | | | 4,039 | | | | 3,494 | |
JPMorgan Chase & Co.
5.375% due 01/15/14 | | | 2,565 | | | | 2,745 | |
5.150% due 10/01/15 | | | 3,950 | | | | 4,326 | |
6.000% due 01/15/18 | | | 8,300 | | | | 9,590 | |
6.300% due 04/23/19 | | | 3,050 | | | | 3,571 | |
4.350% due 08/15/21 | | | 2,900 | | | | 3,036 | |
5.400% due 01/06/42 | | | 5,415 | | | | 5,846 | |
Series 1
7.900% due 04/29/49 (Æ)(ƒ) | | | 3,580 | | | | 3,923 | |
JPMorgan Chase Bank NA
Series BKNT
5.875% due 06/13/16 | | | 240 | | | | 269 | |
6.000% due 10/01/17 | | | 6,400 | | | | 7,348 | |
JPMorgan Chase Capital XIII
Series M
1.420% due 09/30/34 (Ê) | | | 7,300 | | | | 5,532 | |
JPMorgan Chase Capital XX
Series T
6.550% due 09/29/36 | | | 300 | | | | 301 | |
JPMorgan Chase Capital XXI
Series U
1.416% due 02/02/37 (Ê) | | | 455 | | | | 337 | |
JPMorgan Chase Capital XXIII
1.503% due 05/15/47 (Ê) | | | 8,880 | | | | 6,571 | |
Kaiser Foundation Hospitals
4.875% due 04/01/42 | | | 1,165 | | | | 1,225 | |
Kraft Foods, Inc.
1.344% due 07/10/13 (Ê) | | | 5,090 | | | | 5,116 | |
4.125% due 02/09/16 | | | 3,995 | | | | 4,368 | |
6.125% due 02/01/18 | | | 1,000 | | | | 1,204 | |
6.125% due 08/23/18 | | | 2,075 | | | | 2,510 | |
6.500% due 02/09/40 | | | 2,300 | | | | 2,892 | |
Liberty Property, LP
4.750% due 10/01/20 | | | 3,975 | | | | 4,153 | |
| | |
| Russell Strategic Bond Fund | | 229 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Lorillard Tobacco Co.
6.875% due 05/01/20 (Ñ) | | | 6,050 | | | | 7,178 | |
Lowe’s Cos., Inc.
1.625% due 04/15/17 | | | 2,990 | | | | 2,992 | |
3.120% due 04/15/22 | | | 3,530 | | | | 3,579 | |
Manufacturers & Traders Trust Co.
5.585% due 12/28/20 | | | 745 | | | | 727 | |
MassMutual Global Funding II
2.000% due 04/05/17 (Þ) | | | 4,860 | | | | 4,885 | |
Medco Health Solutions, Inc.
7.250% due 08/15/13 | | | 4,357 | | | | 4,717 | |
Merrill Lynch & Co., Inc.
6.050% due 05/16/16 | | | 3,575 | | | | 3,704 | |
6.400% due 08/28/17 | | | 8,355 | | | | 9,032 | |
6.500% due 07/15/18 | | | 100 | | | | 109 | |
7.750% due 05/14/38 | | | 1,500 | | | | 1,661 | |
MetLife Capital Trust X
9.250% due 04/08/38 (Þ) | | | 1,500 | | | | 1,830 | |
MetLife Global Funding I
3.125% due 01/11/16 (Þ) | | | 5,660 | | | | 5,945 | |
MetLife, Inc.
6.400% due 12/15/36 | | | 500 | | | | 489 | |
10.750% due 08/01/39 | | | 4,440 | | | | 6,172 | |
Mirant Mid Atlantic Pass Through Trust B
Series B
9.125% due 06/30/17 | | | 2,915 | | | | 2,973 | |
Molson Coors Brewing Co.
3.500% due 05/01/22 | | | 2,970 | | | | 2,996 | |
Morgan Stanley
5.375% due 10/15/15 | | | 7,000 | | | | 7,221 | |
0.916% due 10/18/16 (Ê) | | | 5,505 | | | | 4,724 | |
5.750% due 10/18/16 | | | 1,500 | | | | 1,553 | |
5.550% due 04/27/17 | | | 2,450 | | | | 2,492 | |
6.250% due 08/28/17 | | | 1,300 | | | | 1,359 | |
5.950% due 12/28/17 | | | 2,350 | | | | 2,417 | |
6.625% due 04/01/18 | | | 9,641 | | | | 10,077 | |
Series GMTN
3.006% due 05/14/13 (Ê) | | | 1,100 | | | | 1,102 | |
0.769% due 01/09/14 (Ê) | | | 9,885 | | | | 9,398 | |
5.450% due 01/09/17 | | | 2,425 | | | | 2,464 | |
National City Bank
Series BKNT
0.845% due 06/07/17 (Ê) | | | 7,200 | | | | 6,758 | |
National Rural Utilities Cooperative Finance Corp.
1.900% due 11/01/15 | | | 2,370 | | | | 2,441 | |
Nationwide Financial Services, Inc.
5.375% due 03/25/21 (Þ) | | | 4,675 | | | | 4,866 | |
NB Capital Trust IV
8.250% due 04/15/27 | | | 3,511 | | | | 3,546 | |
NBCUniversal Media LLC
4.375% due 04/01/21 | | | 4,850 | | | | 5,287 | |
NCUA Guaranteed Notes
Series A4
3.000% due 06/12/19 | | | 3,500 | | | | 3,770 | |
New Cingular Wireless Services, Inc.
8.750% due 03/01/31 | | | 1,710 | | | | 2,544 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Newfield Exploration Co.
5.750% due 01/30/22 | | | 1,400 | | | | 1,491 | |
Newmont Mining Corp.
4.875% due 03/15/42 | | | 4,030 | | | | 3,916 | |
News America, Inc.
8.250% due 10/17/96 | | | 240 | | | | 279 | |
Series WI
6.150% due 02/15/41 | | | 3,950 | | | | 4,533 | |
Nextel Communications, Inc.
Series C
5.950% due 03/15/14 | | | 5,235 | | | | 5,228 | |
Nielsen Finance LLC/Nielsen Finance Co.
11.500% due 05/01/16 | | | 3,700 | | | | 4,274 | |
NII Capital Corp.
7.625% due 04/01/21 | | | 3,675 | | | | 3,418 | |
Nisource Finance Corp.
6.400% due 03/15/18 | | | 2,180 | | | | 2,569 | |
NRG Energy, Inc.
7.625% due 01/15/18 | | | 2,695 | | | | 2,729 | |
8.500% due 06/15/19 (Ñ) | | | 1,660 | | | | 1,693 | |
OMX Timber Finance Investments I LLC
5.420% due 01/29/20 (Þ) | | | 7,200 | | | | 7,565 | |
Oncor Electric Delivery Co. LLC
6.800% due 09/01/18 | | | 4,750 | | | | 5,644 | |
O’Reilly Automotive, Inc.
4.625% due 09/15/21 | | | 4,140 | | | | 4,469 | |
Pacific Bell Telephone Co.
7.375% due 07/15/43 | | | 3,571 | | | | 3,830 | |
Panhandle Eastern Pipeline Co., LP
8.125% due 06/01/19 | | | 3,542 | | | | 4,374 | |
PC Financial Partnership
5.000% due 11/15/14 | | | 3,569 | | | | 3,907 | |
Peabody Energy Corp.
7.875% due 11/01/26 | | | 500 | | | | 523 | |
PepsiCo, Inc.
2.750% due 03/05/22 | | | 1,410 | | | | 1,408 | |
Petrohawk Energy Corp.
7.250% due 08/15/18 | | | 3,760 | | | | 4,286 | |
Philip Morris International, Inc.
5.650% due 05/16/18 | | | 4,055 | | | | 4,852 | |
Phillips 66
2.950% due 05/01/17 (Þ) | | | 4,405 | | | | 4,520 | |
4.300% due 04/01/22 (Þ) | | | 7,905 | | | | 8,245 | |
Plains Exploration & Production Co.
6.125% due 06/15/19 | | | 950 | | | | 960 | |
Plastipak Holdings, Inc.
8.500% due 12/15/15 (Þ) | | | 1,150 | | | | 1,184 | |
PNC Funding Corp.
3.300% due 03/08/22 | | | 4,635 | | | | 4,687 | |
Progress Energy, Inc.
7.050% due 03/15/19 | | | 2,550 | | | | 3,211 | |
ProLogis, LP
1.875% due 11/15/37 | | | 2,550 | | | | 2,540 | |
Prudential Financial, Inc.
3.875% due 01/14/15 | | | 5,675 | | | | 5,987 | |
Prudential Holdings LLC
8.695% due 12/18/23 (Þ) | | | 5,600 | | | | 7,046 | |
| | | | |
| | 230 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series FSA
1.349% due 12/18/17 (Ê)(Þ) | | | 3,500 | | | | 3,284 | |
Public Service Co. of New Mexico
7.950% due 05/15/18 | | | 3,320 | | | | 4,064 | |
Puget Sound Energy, Inc.
Series A
6.974% due 06/01/67 | | | 1,500 | | | | 1,546 | |
Quebecor World Capital Corp.
6.125% due 11/15/13 (Ø) | | | 1,955 | | | | — | |
4.875% due 01/02/49 (Ø) | | | 625 | | | | — | |
QVC, Inc.
7.500% due 10/01/19 (Þ) | | | 4,207 | | | | 4,628 | |
Qwest Communications International, Inc.
8.000% due 10/01/15 | | | 1,175 | | | | 1,251 | |
Range Resources Corp.
7.500% due 10/01/17 | | | 550 | | | | 578 | |
7.250% due 05/01/18 | | | 800 | | | | 848 | |
Rensselaer Polytechnic Institute
5.600% due 09/01/20 | | | 4,675 | | | | 5,364 | |
Rockies Express Pipeline LLC
6.850% due 07/15/18 (Ñ)(Þ) | | | 4,595 | | | | 4,492 | |
Rock-Tenn Co.
4.450% due 03/01/19 (Þ) | | | 2,985 | | | | 3,039 | |
Rohm & Haas Co.
6.000% due 09/15/17 | | | 100 | | | | 117 | |
Sabine Pass LNG, LP
7.250% due 11/30/13 | | | 8,590 | | | | 8,998 | |
7.500% due 11/30/16 | | | 500 | | | | 536 | |
7.500% due 11/30/16 (Þ) | | | 2,900 | | | | 2,995 | |
SABMiller Holdings, Inc.
2.450% due 01/15/17 (Þ) | | | 3,400 | | | | 3,482 | |
3.750% due 01/15/22 (Þ) | | | 5,950 | | | | 6,188 | |
Santander Holdings USA, Inc.
4.625% due 04/19/16 | | | 1,460 | | | | 1,455 | |
Sempra Energy
2.000% due 03/15/14 | | | 4,180 | | | | 4,252 | |
Simon Property Group, LP
6.100% due 05/01/16 | | | 1,955 | | | | 2,244 | |
10.350% due 04/01/19 | | | 3,840 | | | | 5,327 | |
5.650% due 02/01/20 | | | 2,800 | | | | 3,264 | |
4.750% due 03/15/42 | | | 2,390 | | | | 2,346 | |
SLM Corp.
6.250% due 01/25/16 | | | 3,000 | | | | 3,090 | |
South Carolina Electric & Gas Co.
6.500% due 11/01/18 | | | 1,240 | | | | 1,552 | |
Southern Copper Corp.
6.375% due 07/27/15 | | | 1,780 | | | | 2,012 | |
Southern Natural Gas Co. LLC/Southern Natural Issuing Corp.
4.400% due 06/15/21 | | | 6,295 | | | | 6,618 | |
Southern Union Co.
3.483% due 11/01/66 (Ê) | | | 13,467 | | | | 11,363 | |
Springleaf Finance Corp.
6.900% due 12/15/17 | | | 600 | | | | 490 | |
Steel Dynamics, Inc.
7.750% due 04/15/16 | | | 3,450 | | | | 3,588 | |
SunTrust Banks, Inc.
3.600% due 04/15/16 | | | 2,550 | | | | 2,651 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Symetra Financial Corp.
8.300% due 10/15/37 (Þ) | | | 4,035 | | | | 3,944 | |
TD Ameritrade Holding Corp.
4.150% due 12/01/14 | | | 3,665 | | | | 3,914 | |
Tenet Healthcare Corp.
10.000% due 05/01/18 | | | 765 | | | | 883 | |
8.875% due 07/01/19 | | | 1,500 | | | | 1,682 | |
Tennessee Gas Pipeline Co.
8.000% due 02/01/16 | | | 3,305 | | | | 3,853 | |
8.375% due 06/15/32 | | | 4,380 | | | | 5,797 | |
Textron, Inc.
6.200% due 03/15/15 | | | 4,305 | | | | 4,727 | |
Time Warner Cable, Inc.
6.200% due 07/01/13 | | | 5,900 | | | | 6,264 | |
Timken Co.
6.000% due 09/15/14 | | | 2,440 | | | | 2,658 | |
Transatlantic Holdings, Inc.
8.000% due 11/30/39 | | | 2,250 | | | | 2,566 | |
UAL 2009-1 Pass Through Trust
Series 09-1
10.400% due 11/01/16 | | | 461 | | | | 526 | |
UBS Preferred Funding Trust V
Series 1
6.243% due 05/29/49 (ƒ) | | | 3,600 | | | | 3,348 | |
Union Electric Co.
6.400% due 06/15/17 | | | 3,145 | | | | 3,804 | |
UnitedHealth Group, Inc.
6.000% due 06/15/17 | | | 56 | | | | 67 | |
USB Capital IX
3.500% due 10/29/49 (Ê)(ƒ) | | | 300 | | | | 229 | |
USB Realty Corp.
1.614% due 12/29/49 (Ê)(ƒ)(Þ) | | | 2,225 | | | | 1,666 | |
Verizon Communications, Inc.
3.000% due 04/01/16 | | | 4,180 | | | | 4,457 | |
3.500% due 11/01/21 | | | 2,650 | | | | 2,773 | |
Wachovia Bank NA
Series BKNT
6.600% due 01/15/38 | | | 2,725 | | | | 3,361 | |
Wachovia Capital Trust III
5.570% due 03/29/49 (Ê)(ƒ) | | | 3,897 | | | | 3,614 | |
Wachovia Corp.
5.500% due 05/01/13 | | | 7,975 | | | | 8,347 | |
5.625% due 10/15/16 | | | 100 | | | | 113 | |
5.750% due 02/01/18 | | | 500 | | | | 583 | |
Watson Pharmaceuticals, Inc.
5.000% due 08/15/14 | | | 4,441 | | | | 4,751 | |
WEA Finance LLC / WT Finance Aust Pty, Ltd.
7.500% due 06/02/14 (Þ) | | | 3,870 | | | | 4,267 | |
6.750% due 09/02/19 (Þ) | | | 1,300 | | | | 1,524 | |
Wells Fargo & Co.
3.500% due 03/08/22 | | | 4,540 | | | | 4,598 | |
Series K
7.980% due 03/29/49 (ƒ) | | | 20,000 | | | | 21,700 | |
Weyerhaeuser Co.
7.375% due 10/01/19 | | | 1,480 | | | | 1,744 | |
Williams Cos., Inc. (The)
7.875% due 09/01/21 | | | 458 | | | | 582 | |
| | |
| Russell Strategic Bond Fund | | 231 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Williams Partners, LP/Williams Partners Finance Corp.
7.250% due 02/01/17 | | | 4,245 | | | | 5,146 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
5.375% due 03/15/22 (Ñ)(Þ) | | | 5,565 | | | | 5,454 | |
Xylem, Inc.
3.550% due 09/20/16 (Þ) | | | 3,225 | | | | 3,356 | |
ZFS Finance USA Trust II
6.450% due 12/15/65 (Þ) | | | 11,635 | | | | 11,402 | |
ZFS Finance USA Trust IV
5.875% due 05/09/32 (Þ) | | | 263 | | | | 263 | |
| | | | | | | | |
| | | | | | | 1,412,937 | |
| | | | | | | | |
| | |
| International Debt - 7.9% | | | | | | | | |
Abbey National Treasury Services PLC
4.000% due 04/27/16 | | | 3,950 | | | | 3,905 | |
Achmea Hypotheekbank NV
3.200% due 11/03/14 (Þ) | | | 8,267 | | | | 8,645 | |
AK Transneft OJSC Via TransCapitalInvest, Ltd.
8.700% due 08/07/18 (Þ) | | | 1,000 | | | | 1,235 | |
American International Group, Inc.
6.765% due 11/15/17 (Þ) | | | 2,094 | | | | 3,683 | |
Anglo American Capital PLC
2.625% due 04/03/17 (Þ) | | | 5,390 | | | | 5,418 | |
ANZ National International, Ltd.
6.200% due 07/19/13 (Þ) | | | 5,000 | | | | 5,276 | |
ArcelorMittal
9.000% due 02/15/15 | | | 2,150 | | | | 2,463 | |
4.500% due 02/25/17 | | | 4,755 | | | | 4,787 | |
6.250% due 02/25/22 | | | 3,955 | | | | 4,029 | |
AstraZeneca PLC
5.900% due 09/15/17 | | | 1,100 | | | | 1,323 | |
Australia & New Zealand Banking Group, Ltd.
2.125% due 01/10/14 (Þ) | | | 2,700 | | | | 2,739 | |
Avalon Capital, Ltd. 3
Series 2005-1A Class A1
0.762% due 02/24/19 (Ê)(Þ) | | | 4,505 | | | | 4,412 | |
Series 2005-1A Class A2
0.772% due 02/24/19 (Ê)(Þ) | | | 5,220 | | | | 5,113 | |
AWAS Aviation Capital, Ltd.
7.000% due 10/17/16 (Þ) | | | 3,253 | | | | 3,367 | |
Bakrie Telecom Pte, Ltd.
11.500% due 05/07/15 (Þ) | | | 3,055 | | | | 2,368 | |
Banco Santander Brasil SA
4.500% due 04/06/15 (Þ) | | | 300 | | | | 300 | |
Banco Santander Brazil SA/Cayman Islands
2.574% due 03/18/14 (Ê)(Þ) | | | 1,400 | | | | 1,391 | |
Bank of China Hong Kong, Ltd.
5.550% due 02/11/20 (Þ) | | | 600 | | | | 642 | |
Bank of India
Series REGS
4.750% due 09/30/15 | | | 600 | | | | 611 | |
Bank of Montreal
2.850% due 06/09/15 (Ñ)(Þ) | | | 1,100 | | | | 1,163 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
2.500% due 01/11/17 | | | 5,505 | | | | 5,655 | |
Bank of New York Mellon SA Institucion de Banca Multiple
9.625% due 05/02/21 (Þ) | | | 1,295 | | | | 1,205 | |
Bank of Nova Scotia
1.050% due 03/20/15 (Þ) | | | 1,600 | | | | 1,607 | |
1.750% due 03/22/17 (Þ) | | | 500 | | | | 505 | |
Bank of Scotland PLC
5.250% due 02/21/17 (Þ) | | | 4,100 | | | | 4,489 | |
Barclays Bank PLC
2.375% due 01/13/14 | | | 1,000 | | | | 1,007 | |
6.050% due 12/04/17 (Þ) | | | 2,700 | | | | 2,708 | |
BBVA Bancomer SA
4.500% due 03/10/16 (Þ) | | | 600 | | | | 600 | |
6.500% due 03/10/21 (Þ) | | | 1,200 | | | | 1,212 | |
Black Diamond CLO, Ltd.
Series 2007-1A Class AD
0.716% due 04/29/19 (Ê)(Þ) | | | 23,250 | | | | 21,414 | |
BNP Paribas SA
5.186% due 06/29/49 (ƒ)(Þ) | | | 600 | | | | 495 | |
Bolivarian Republic of Venezuela
8.250% due 10/13/24 | | | 4,420 | | | | 3,624 | |
BP Capital Markets PLC
3.200% due 03/11/16 | | | 2,075 | | | | 2,211 | |
4.500% due 10/01/20 | | | 4,700 | | | | 5,222 | |
Braskem Finance, Ltd.
5.750% due 04/15/21 (Þ) | | | 500 | | | | 520 | |
Caisse Centrale Desjardins du Quebec
2.650% due 09/16/15 (Þ) | | | 6,705 | | | | 6,933 | |
Chatham Light CLO, Ltd.
Series 2005-2A Class A1
0.787% due 08/03/19 (Å)(Ê) | | | 2,914 | | | | 2,855 | |
CNOOC Finance 2012, Ltd.
3.875% due 05/02/22 (Å) | | | 3,475 | | | | 3,478 | |
Colombia Government International Bond
6.125% due 01/18/41 | | | 1,630 | | | | 2,059 | |
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrect
3.875% due 02/08/22 | | | 4,395 | | | | 4,342 | |
Corp. Andina de Fomento
8.125% due 06/04/19 | | | 970 | | | | 1,214 | |
Corp. Nacional del Cobre de Chile
7.500% due 01/15/19 (Þ) | | | 1,900 | | | | 2,413 | |
6.150% due 10/24/36 (Þ) | | | 100 | | | | 123 | |
Covidien International Finance SA
4.200% due 06/15/20 | | | 2,250 | | | | 2,487 | |
Credit Suisse NY
2.200% due 01/14/14 | | | 900 | | | | 910 | |
5.500% due 05/01/14 | | | 3,000 | | | | 3,224 | |
6.000% due 02/15/18 | | | 1,380 | | | | 1,491 | |
CSN Islands XI Corp.
6.875% due 09/21/19 (Þ) | | | 300 | | | | 339 | |
CSN Resources SA
6.500% due 07/21/20 (Þ) | | | 400 | | | | 443 | |
Dexia Credit Local SA
0.946% due 04/29/14 (Ê)(Þ) | | | 5,300 | | | | 4,952 | |
| | | | |
| | 232 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Digicel Group, Ltd.
8.875% due 01/15/15 (Þ) | | | 875 | | | | 880 | |
9.125% due 01/15/15 (Þ) | | | 6,957 | | | | 7,002 | |
Series REGS
8.875% due 01/15/15 | | | 395 | | | | 397 | |
DNB Bank ASA
3.200% due 04/03/17 (Å) | | | 1,900 | | | | 1,920 | |
Dolphin Energy, Ltd.
5.500% due 12/15/21 (Þ) | | | 3,200 | | | | 3,408 | |
Eastern and Southern African Trade and Development Bank
6.875% due 01/09/16 | | | 2,435 | | | | 2,405 | |
Eksportfinans ASA
2.375% due 05/25/16 | | | 1,250 | | | | 1,115 | |
Electricite de France SA
5.500% due 01/26/14 (Ñ)(Þ) | | | 1,700 | | | | 1,815 | |
6.500% due 01/26/19 (Þ) | | | 1,700 | | | | 2,007 | |
6.950% due 01/26/39 (Þ) | | | 1,400 | | | | 1,663 | |
Endurance Specialty Holdings, Ltd.
6.150% due 10/15/15 | | | 525 | | | | 563 | |
Enel Finance International NV
6.250% due 09/15/17 (Ñ)(Þ) | | | 1,500 | | | | 1,585 | |
6.000% due 10/07/39 (Þ) | | | 2,850 | | | | 2,411 | |
ENN Energy Holdings, Ltd.
6.000% due 05/13/21 (Ñ)(Þ) | | | 300 | | | | 287 | |
Export-Import Bank of China
4.875% due 07/21/15 (Þ) | | | 300 | | | | 326 | |
Federal Home Loan Mortgage Corp.
4.375% due 01/15/14 | | | 3,500 | | | | 4,870 | |
Gazprom OAO Via Gaz Capital SA
8.146% due 04/11/18 (Þ) | | | 2,600 | | | | 3,067 | |
Series REGS
9.250% due 04/23/19 | | | 2,380 | | | | 2,963 | |
8.625% due 04/28/34 | | | 13,100 | | | | 16,789 | |
Gazprom OAO Via Gazprom International SA
Series REGS
7.201% due 02/01/20 | | | 1,551 | | | | 1,706 | |
Gazprom OAO Via White Nights Finance BV
Series REGS
10.500% due 03/08/14 | | | 300 | | | | 341 | |
Gerdau Trade, Inc.
5.750% due 01/30/21 (Ñ)(Þ) | | | 2,700 | | | | 2,859 | |
Government of the Cayman Islands
5.950% due 11/24/19 (Þ) | | | 3,730 | | | | 4,062 | |
Granite Mortgages PLC
Series 2004-3 Class 2A1
0.754% due 09/20/44 (Ê) | | | 358 | | | | 345 | |
Greywolf CLO, Ltd.
Series 2007-1A Class A
0.738% due 02/18/21 (Ê)(Þ) | | | 4,418 | | | | 4,112 | |
HBOS PLC
Series GMTN
6.750% due 05/21/18 (Þ) | | | 9,920 | | | | 9,115 | |
HSBC Bank USA NA NY
Series CLN
Zero coupon due 08/15/40 | | | 8,130 | | | | 11,062 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
HSBC Holdings PLC
6.500% due 05/02/36 | | | 700 | | | | 772 | |
6.500% due 09/15/37 | | | 1,200 | | | | 1,331 | |
6.800% due 06/01/38 | | | 1,375 | | | | 1,553 | |
Hutchison Whampoa International 09, Ltd.
Series REGS
7.625% due 04/09/19 | | | 2,800 | | | | 3,458 | |
Hutchison Whampoa International 11, Ltd.
4.625% due 01/13/22 (Þ) | | | 6,090 | | | | 6,321 | |
ING Bank NV
2.375% due 06/09/14 (Þ) | | | 4,500 | | | | 4,467 | |
Intelsat Jackson Holdings SA
9.500% due 06/15/16 | | | 5,595 | | | | 5,826 | |
IPIC GMTN, Ltd.
5.500% due 03/01/22 (Þ) | | | 2,025 | | | | 2,116 | |
6.875% due 11/01/41 (Þ) | | | 1,800 | | | | 1,922 | |
Israel Government AID Bond
5.500% due 09/18/23 | | | 3,400 | | | | 4,360 | |
5.500% due 09/18/33 | | | 6,000 | | | | 7,663 | |
Jasper CLO, Ltd.
Series 2005-1A Class A
0.736% due 08/01/17 (Ê)(Þ) | | | 10,757 | | | | 10,132 | |
JPMorgan Chase & Co.
1.067% due 09/26/13 (Ê) | | | 300 | | | | 396 | |
Kinross Gold Corp.
6.875% due 09/01/41 (Þ) | | | 1,415 | | | | 1,486 | |
Koninklijke Philips Electronics NV
3.750% due 03/15/22 | | | 5,699 | | | | 5,872 | |
Korea Electric Power Corp.
5.125% due 04/23/34 (Þ) | | | 485 | | | | 498 | |
LBG Capital No 1 PLC
8.500% due 12/29/49 (ƒ)(Þ) | | | 300 | | | | 276 | |
Lloyds Banking Group PLC
5.920% due 12/31/49 (ƒ)(Þ) | | | 4,870 | | | | 2,995 | |
6.657% due 12/31/49 (ƒ)(Ñ)(Þ) | | | 4,350 | | | | 2,915 | |
Lloyds TSB Bank PLC
4.200% due 03/28/17 | | | 7,735 | | | | 7,847 | |
12.000% due 12/29/49 (ƒ)(Þ) | | | 8,700 | | | | 9,186 | |
Majapahit Holding BV
Series REGS
7.750% due 10/17/16 | | | 900 | | | | 1,033 | |
Methanex Corp.
5.250% due 03/01/22 | | | 4,275 | | | | 4,446 | |
Mexico Government International Bond
6.050% due 01/11/40 | | | 280 | | | | 349 | |
Mitsui Sumitomo Insurance Co., Ltd.
7.000% due 03/15/72 (Þ) | | | 1,725 | | | | 1,777 | |
Mizuho Corporate Bank, Ltd.
2.550% due 03/17/17 (Þ) | | | 3,900 | | | | 3,928 | |
Montpelier Re Holdings, Ltd.
6.125% due 08/15/13 | | | 4,985 | | | | 5,177 | |
Monument Park CDO, Ltd.
Series 2004-1A Class A1
1.016% due 01/20/16 (Ê)(Þ) | | | 679 | | | | 673 | |
Morgan Stanley
Series GMTN
1.177% due 01/16/17 (Ê) | | | 300 | | | | 336 | |
| | |
| Russell Strategic Bond Fund | | 233 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
MTS International Funding, Ltd.
Series REGS
8.625% due 06/22/20 | | | 200 | | | | 230 | |
MUFG Capital Finance 1, Ltd.
6.346% due 07/29/49 (ƒ) | | | 4,050 | | | | 4,266 | |
National Australia Bank, Ltd.
5.350% due 06/12/13 (Þ) | | | 6,725 | | | | 7,053 | |
Nationwide Building Society
6.250% due 02/25/20 (Þ) | | | 2,600 | | | | 2,763 | |
Newcrest Finance Pty, Ltd.
4.450% due 11/15/21 (Þ) | | | 3,600 | | | | 3,709 | |
Nexen, Inc.
6.400% due 05/15/37 | | | 290 | | | | 322 | |
7.500% due 07/30/39 | | | 3,700 | | | | 4,533 | |
Noble Group, Ltd.
6.750% due 01/29/20 (Þ) | | | 700 | | | | 686 | |
Nokia OYJ
5.375% due 05/15/19 | | | 2,550 | | | | 2,231 | |
Nordea Bank AB
2.125% due 01/14/14 (Þ) | | | 400 | | | | 400 | |
Norske Skogindustrier ASA
6.125% due 10/15/15 (Þ) | | | 2,525 | | | | 1,780 | |
North American Development Bank
4.375% due 02/11/20 | | | 5,900 | | | | 6,582 | |
Novatek Finance, Ltd.
5.326% due 02/03/16 (Þ) | | | 400 | | | | 417 | |
Odebrecht Drilling Norbe VIII/IX, Ltd.
6.350% due 06/30/21 (Þ) | | | 1,666 | | | | 1,774 | |
Oi SA
5.750% due 02/10/22 (Þ) | | | 6,820 | | | | 6,991 | |
Panama Government International Bond
7.250% due 03/15/15 | | | 300 | | | | 348 | |
PE Paper Escrow GmbH
12.000% due 08/01/14 (Þ) | | | 2,450 | | | | 2,646 | |
Pernod-Ricard SA
2.950% due 01/15/17 (Þ) | | | 13,050 | | | | 13,279 | |
5.500% due 01/15/42 (Þ) | | | 2,880 | | | | 2,944 | |
Petrobras International Finance Co. - Pifco
3.875% due 01/27/16 | | | 4,000 | | | | 4,187 | |
5.875% due 03/01/18 | | | 700 | | | | 789 | |
8.375% due 12/10/18 | | | 400 | | | | 506 | |
5.750% due 01/20/20 | | | 320 | | | | 357 | |
5.375% due 01/27/21 | | | 2,710 | | | | 2,969 | |
6.750% due 01/27/41 | | | 2,270 | | | | 2,726 | |
Petroleos de Venezuela SA
Series REGS
8.500% due 11/02/17 | | | 1,960 | | | | 1,749 | |
Petroleos Mexicanos
8.000% due 05/03/19 | | | 4,400 | | | | 5,588 | |
Series WI
6.500% due 06/02/41 | | | 1,015 | | | | 1,177 | |
PPL WEM Holdings PLC
5.375% due 05/01/21 (Þ) | | | 2,720 | | | | 2,980 | |
Province of Ontario Canada
3.000% due 07/16/18 | | | 1,000 | | | | 1,067 | |
Province of Quebec Canada
3.500% due 07/29/20 | | | 1,600 | | | | 1,746 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
2.750% due 08/25/21 | | | 2,600 | | | | 2,644 | |
PTTEP Canada International Finance, Ltd.
5.692% due 04/05/21 (Þ) | | | 2,610 | | | | 2,824 | |
Qatar Government International Bond
5.750% due 01/20/42 (Þ) | | | 1,545 | | | | 1,719 | |
QBE Capital Funding III, Ltd.
7.250% due 05/24/41 (Þ) | | | 3,000 | | | | 2,745 | |
Rabobank Nederland NV
11.000% due 06/29/49 (ƒ)(Þ) | | | 4,642 | | | | 5,895 | |
Ralph Lauren Corp.
4.500% due 10/04/13 | | | 2,050 | | | | 2,810 | |
Ras Laffan Liquefied Natural Gas Co., Ltd. II
5.298% due 09/30/20 (Þ) | | | 630 | | | | 680 | |
Ras Laffan Liquefied Natural Gas Co., Ltd. III
5.838% due 09/30/27 (Þ) | | | 300 | | | | 322 | |
Republic of Indonesia
8.500% due 10/12/35 | | | 2,930 | | | | 4,256 | |
Republic of Venezuela
7.750% due 10/13/19 | | | 2,880 | | | | 2,480 | |
RESI Finance, LP
Series 2003-D Class B3
1.541% due 12/10/35 (Ê)(Þ) | | | 1,140 | | | | 846 | |
Series 2003-D Class B4
1.741% due 12/10/35 (Ê)(Þ) | | | 1,326 | | | | 952 | |
Resix Finance, Ltd. Credit-Linked Notes
Series 2003-D Class B7
5.991% due 12/10/35 (Ê)(Þ) | | | 1,326 | | | | 865 | |
Resona Bank, Ltd.
5.850% due 09/29/49 (ƒ)(Þ) | | | 600 | | | | 625 | |
Rio Tinto Finance USA PLC
3.500% due 03/22/22 | | | 3,150 | | | | 3,280 | |
Royal Bank of Scotland Group PLC
Series 1
9.118% due 03/31/49 (ƒ) | | | 2,300 | | | | 2,001 | |
Royal Bank of Scotland PLC (The)
3.250% due 01/11/14 | | | 5,500 | | | | 5,532 | |
4.875% due 08/25/14 (Þ) | | | 4,075 | | | | 4,205 | |
1.211% due 09/29/15 (Ê) | | | 100 | | | | 83 | |
1.247% due 10/14/16 (Ê) | | | 100 | | | | 79 | |
Russian Foreign Bond - Eurobond
4.500% due 04/04/22 (Þ) | | | 7,200 | | | | 7,463 | |
Series REGS
3.625% due 04/29/15 | | | 200 | | | | 208 | |
5.000% due 04/29/20 | | | 100 | | | | 108 | |
Silverstone Master Issuer PLC
Series 2012-1A Class 2A1
2.116% due 01/21/55 (Ê)(Þ) | | | 7,300 | | | | 7,355 | |
Sirius International Group, Ltd.
7.506% due 05/29/49 (ƒ)(Þ) | | | 5,830 | | | | 5,565 | |
SMART Trust
Series 2011-2USA Class A4A
2.310% due 04/14/17 (Þ) | | | 7,420 | | | | 7,524 | |
Series 2012-1USA Class A4A
2.010% due 12/14/17 (Þ) | | | 4,900 | | | | 4,893 | |
Smurfit Kappa Treasury Funding, Ltd.
7.500% due 11/20/25 | | | 1,800 | | | | 1,800 | |
Societe Generale SA
1.519% due 04/11/14 (Ê)(Þ) | | | 300 | | | | 286 | |
| | | | |
| | 234 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Sparebank 1 Boligkreditt AS
2.300% due 06/30/17 (Þ) | | | 8,600 | | | | 8,608 | |
Standard Chartered PLC
5.500% due 11/18/14 (Þ) | | | 500 | | | | 540 | |
Sumitomo Mitsui Banking Corp.
1.950% due 01/14/14 (Þ) | | | 1,200 | | | | 1,212 | |
Suncor Energy, Inc.
5.950% due 12/01/34 | | | 2,025 | | | | 2,350 | |
Telecom Italia Capital SA
5.250% due 10/01/15 | | | 185 | | | | 188 | |
Telefonos de Mexico SAB de CV
5.500% due 01/27/15 | | | 5,880 | | | | 6,441 | |
Temasek Financial I, Ltd.
4.300% due 10/25/19 (Þ) | | | 1,200 | | | | 1,332 | |
TNK-BP Finance SA Series REGS
7.500% due 07/18/16 | | | 2,270 | | | | 2,551 | |
Total Capital SA
4.450% due 06/24/20 | | | 4,240 | | | | 4,764 | |
TransCanada PipeLines, Ltd.
6.350% due 05/15/67 | | | 3,175 | | | | 3,314 | |
Transocean, Inc.
5.050% due 12/15/16 | | | 5,410 | | | | 5,875 | |
6.000% due 03/15/18 | | | 1,475 | | | | 1,650 | |
6.500% due 11/15/20 | | | 9,534 | | | | 10,949 | |
6.375% due 12/15/21 | | | 3,685 | | | | 4,315 | |
7.350% due 12/15/41 | | | 5,655 | | | | 6,926 | |
Tyco Electronics Group SA
6.550% due 10/01/17 | | | 3,950 | | | | 4,719 | |
UBS AG
5.850% due 12/31/17 (Þ) | | | 4,690 | | | | 1,320 | |
Series BKNT
5.875% due 12/20/17 | | | 2,000 | | | | 2,217 | |
5.750% due 04/25/18 | | | 300 | | | | 330 | |
Series FRN
1.466% due 01/28/14 (Ê) | | | 1,000 | | | | 992 | |
Vale Overseas, Ltd.
6.250% due 01/23/17 | | | 200 | | | | 231 | |
4.375% due 01/11/22 | | | 4,525 | | | | 4,636 | |
6.875% due 11/21/36 | | | 200 | | | | 238 | |
Venezuela Government International Bond
9.000% due 05/07/23 | | | 2,140 | | | | 1,862 | |
7.650% due 04/21/25 | | | 1,950 | | | | 1,511 | |
9.250% due 05/07/28 | | | 1,200 | | | | 1,017 | |
Series REGS
12.750% due 08/23/22 | | | 1,900 | | | | 2,047 | |
11.750% due 10/21/26 | | | 590 | | | | 584 | |
11.950% due 08/05/31 | | | 500 | | | | 499 | |
Vimpel Communications Via VIP Finance Ireland, Ltd. OJSC
6.493% due 02/02/16 (Þ) | | | 1,860 | | | | 1,920 | |
7.748% due 02/02/21 (Þ) | | | 1,790 | | | | 1,782 | |
Virgin Media Finance PLC
Series 1
9.500% due 08/15/16 | | | 807 | | | | 904 | |
Vnesheconombank Via VEB Finance PLC
5.375% due 02/13/17 (Å) | | | 5,000 | | | | 5,213 | |
Volvo Treasury AB
5.950% due 04/01/15 (Þ) | | | 6,299 | | | | 6,924 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Weatherford International, Ltd.
9.625% due 03/01/19 | | | 2,590 | | | | 3,426 | |
Westpac Banking Corp.
3.585% due 08/14/14 (Þ) | | | 9,600 | | | | 10,144 | |
Willis Group Holdings PLC
4.125% due 03/15/16 | | | 2,980 | | | | 3,120 | |
Wind Acquisition Finance SA
7.250% due 02/15/18 (Þ) | | | 3,265 | | | | 3,102 | |
WPP Finance UK
8.000% due 09/15/14 | | | 3,060 | | | | 3,514 | |
| | | | | | | | |
| | | | | | | 632,900 | |
| | | | | | | | |
| | |
| Loan Agreements - 0.2% | | | | | | | | |
Caesars Entertainment Operating Co., Inc. Term Loan B6
1.000% due 01/28/18 (Ê) | | | 3,400 | | | | 3,112 | |
Chrysler Group LLC Term Loan B
1.000% due 05/24/17 (Ê) | | | 7,721 | | | | 7,854 | |
HCA, Inc. Extended Term Loan B3
1.000% due 05/01/18 | | | 5,448 | | | | 5,357 | |
Newsday LLC Term Loan B
10.500% due 08/01/13 | | | 2,775 | | | | 2,846 | |
| | | | | | | | |
| | | | | | | 19,169 | |
| | | | | | | | |
|
| Mortgage-Backed Securities - 39.7% | |
Adjustable Rate Mortgage Trust
Series 2006-1 Class 2A1
3.242% due 03/25/36 (Ê) | | | 1,073 | | | | 626 | |
Series 2007-1 Class 1A1
3.019% due 03/25/37 (Ê) | | | 5,026 | | | | 2,937 | |
American Express Credit Account Master Trust
Series 2008-4
1.640% due 11/15/16 | | | 2,300 | | | | 2,360 | |
American Home Mortgage Assets LLC
Series 2007-4 Class A2
0.429% due 08/25/37 (Ê) | | | 7,160 | | | | 5,404 | |
American Home Mortgage Investment Trust
Series 2004-4 Class 4A
2.239% due 02/25/45 (Ê) | | | 604 | | | | 490 | |
Series 2005-2 Class 5A3
5.077% due 09/25/35 | | | 643 | | | | 655 | |
Banc of America Alternative Loan Trust
Series 2005-5 Class 2CB1
6.000% due 06/25/35 | | | 622 | | | | 495 | |
Series 2006-6 Class CB6
6.000% due 06/25/46 | | | 1,123 | | | | 122 | |
Banc of America Funding Corp.
Series 2005-F Class 1A2
0.590% due 09/20/35 (Ê) | | | 254 | | | | 66 | |
Series 2006-3 Class 5A8
5.500% due 03/25/36 | | | 4,556 | | | | 4,259 | |
Series 2006-A Class 4A1
5.380% due 02/20/36 (Ê) | | | 2,829 | | | | 2,201 | |
Series 2006-D Class 1A2
0.520% due 05/20/36 (Ê) | | | 39,000 | | | | 8,540 | |
| | |
| Russell Strategic Bond Fund | | 235 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2006-F Class 1A2
2.668% due 07/20/36 (Ê) | | | 201 | | | | 48 | |
Series 2006-G Class 2A3
0.410% due 07/20/36 (Ê) | | | 6,533 | | | | 6,359 | |
Series 2006-H Class 4A4
5.943% due 09/20/46 (Ê) | | | 578 | | | | 33 | |
Series 2006-I Class 5A1
5.960% due 10/20/46 (Ê) | | | 9,258 | | | | 7,534 | |
Series 2006-J Class 4A1
5.739% due 01/20/47 (Ê) | | | 752 | | | | 458 | |
Series 2007-2 Class TA1B
5.806% due 03/25/37 | | | 285 | | | | 197 | |
Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2002-PB2 Class A4
6.186% due 06/11/35 | | | 68 | | | | 68 | |
Series 2002-PB2 Class C
6.349% due 06/11/35 | | | 100 | | | | 100 | |
Series 2003-1 Class D
4.903% due 09/11/36 (Þ) | | | 440 | | | | 444 | |
Series 2003-1 Class SBB
5.860% due 03/11/32 (Þ) | | | 1,612 | | | | 1,667 | |
Series 2003-1 Class SBC
5.790% due 03/11/32 (Þ) | | | 1,325 | | | | 1,369 | |
Series 2003-1 Class SBE
6.770% due 03/11/32 (Þ) | | | 430 | | | | 449 | |
Series 2005-1 Class A3
4.877% due 11/10/42 | | | 1,047 | | | | 1,046 | |
Series 2005-1 Class A4
5.241% due 11/10/42 | | | 2,495 | | | | 2,564 | |
Series 2005-2 Class A4
4.783% due 07/10/43 | | | 90 | | | | 90 | |
Series 2005-2 Class A5
4.857% due 07/10/43 | | | 7,570 | | | | 8,287 | |
Series 2006-1 Class A4
5.372% due 09/10/45 | | | 4,225 | | | | 4,725 | |
Series 2006-3 Class A4
5.889% due 07/10/44 | | | 7,720 | | | | 8,720 | |
Series 2006-4 Class A4
5.634% due 07/10/46 | | | 3,640 | | | | 4,114 | |
Series 2006-6 Class A4
5.356% due 10/10/45 | | | 840 | | | | 926 | |
Series 2007-2 Class A4
5.818% due 04/10/49 | | | 4,700 | | | | 5,334 | |
Series 2007-2 Class AM
5.828% due 04/10/49 | | | 2,100 | | | | 2,086 | |
Series 2008-1 Class A4
6.395% due 02/10/51 | | | 6,605 | | | | 7,736 | |
Series 2008-1 Class B
6.438% due 02/10/51 (Þ) | | | 1,562 | | | | 1,025 | |
Series 2008-1 Class C
6.438% due 02/10/51 (Þ) | | | 1,507 | | | | 844 | |
Banc of America Mortgage Securities, Inc.
Series 2004-1 Class 5A1
6.500% due 09/25/33 | | | 25 | | | | 27 | |
Series 2004-11 Class 2A1
5.750% due 01/25/35 | | | 1,411 | | | | 1,445 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2004-D Class 1A1
2.851% due 05/25/34 (Ê) | | | 47 | | | | 42 | |
Series 2004-F Class 1A1
2.748% due 07/25/34 (Ê) | | | 677 | | | | 603 | |
Series 2004-I Class 2A2
2.746% due 10/25/34 (Ê) | | | 141 | | | | 132 | |
Series 2005-H Class 2A5
2.762% due 09/25/35 (Ê) | | | 3,300 | | | | 2,459 | |
Series 2005-I Class 2A2
2.747% due 10/25/35 (Ê) | | | 1,905 | | | | 235 | |
Series 2006-2 Class A12
6.000% due 07/25/46 | | | 53 | | | | 50 | |
Series 2006-B Class 1A1
2.683% due 10/20/46 (Ê) | | | 903 | | | | 426 | |
Series 2007-1 Class 1A16
5.625% due 03/25/37 | | | 1,422 | | | | 1,307 | |
Series 2007-1 Class 1A26
6.000% due 03/25/37 | | | 1,099 | | | | 984 | |
Bcap LLC 2011 RR4 II
Series 2011-RR4 Class 7A2
11.194% due 04/26/37 (Þ) | | | 5,194 | | | | 1,428 | |
Bear Stearns Adjustable Rate Mortgage Trust
Series 2002-11 Class 1A2
2.888% due 02/25/33 (Ê) | | | 8 | | | | 7 | |
Series 2003-1 Class 6A1
2.625% due 04/25/33 (Ê) | | | 35 | | | | 33 | |
Series 2003-8 Class 4A1
2.862% due 01/25/34 (Ê) | | | 235 | | | | 236 | |
Series 2004-3 Class 1A1
3.097% due 07/25/34 (Ê) | | | 659 | | | | 520 | |
Series 2004-8 Class 2A1
2.836% due 11/25/34 (Ê) | | | 2,285 | | | | 1,934 | |
Series 2004-9 Class 22A1
3.207% due 11/25/34 (Ê) | | | 408 | | | | 403 | |
Series 2004-10 Class 22A1
2.814% due 01/25/35 (Ê) | | | 430 | | | | 380 | |
Series 2005-2 Class A1
2.620% due 03/25/35 (Ê) | | | 8,035 | | | | 7,780 | |
Series 2005-10 Class A3
2.681% due 10/25/35 (Ê) | | | 8,583 | | | | 6,802 | |
Series 2005-12 Class 13A1
5.353% due 02/25/36 (Ê) | | | 421 | | | | 367 | |
Series 2007-1 Class 3A2
5.295% due 02/25/47 (Ê) | | | 756 | | | | 45 | |
Series 2007-3 Class 1A1
3.998% due 05/25/47 (Ê) | | | 3,100 | | | | 2,064 | |
Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.817% due 05/25/35 (Ê) | | | 1,392 | | | | 1,096 | |
Series 2005-5 Class 21A1
2.660% due 07/25/35 (Ê) | | | 3,236 | | | | 2,214 | |
Series 2005-7 Class 22A1
2.824% due 09/25/35 (Ê) | | | 933 | | | | 636 | |
Bear Stearns Commercial Mortgage Securities
Series 2001-TOP2 Class D
6.940% due 02/15/35 (Þ) | | | 1,715 | | | | 1,695 | |
| | | | |
| | 236 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2005-PWR9 Class A4B
4.943% due 09/11/42 | | | 495 | | | | 522 | |
Series 2005-T20 Class A4A
5.299% due 10/12/42 | | | 9,036 | | | | 10,075 | |
Series 2006-PW11 Class A4
5.620% due 03/11/39 | | | 5,570 | | | | 6,253 | |
Series 2006-PW13 Class A4
5.540% due 09/11/41 | | | 10,863 | | | | 12,345 | |
Series 2006-PW14 Class A4
5.201% due 12/11/38 | | | 2,800 | | | | 3,147 | |
Series 2007-PW15 Class A4
5.331% due 02/11/44 | | | 100 | | | | 107 | |
Series 2007-PW16 Class A4
5.905% due 06/11/40 | | | 5,198 | | | | 5,957 | |
Series 2007-PW16 Class AM
5.905% due 06/11/40 | | | 2,400 | | | | 2,456 | |
Series 2007-PW17 Class A4
5.694% due 06/11/50 | | | 13,110 | | | | 15,049 | |
Series 2007-T26 Class A4
5.471% due 01/12/45 | | | 400 | | | | 455 | |
Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
2.763% due 01/26/36 (Ê) | | | 1,996 | | | | 1,184 | |
Series 2007-R6 Class 2A1
2.836% due 12/26/46 (Ê) | | | 1,751 | | | | 983 | |
Chase Commercial Mortgage Securities Corp.
Series 1997-1 Class F
7.370% due 06/19/29 (Þ) | | | 365 | | | | 365 | |
Chase Mortgage Finance Corp.
Series 2007-A1 Class 11M1
2.880% due 03/25/37 (Ê) | | | 725 | | | | 558 | |
Series 2007-A1 Class 2A1
2.750% due 02/25/37 (Ê) | | | 736 | | | | 731 | |
Series 2007-A1 Class 3A1
2.849% due 02/25/37 (Ê) | | | 464 | | | | 426 | |
Series 2007-A1 Class 4A1
2.919% due 02/25/37 (Ê) | | | 201 | | | | 196 | |
Series 2007-A1 Class 5A1
2.757% due 02/25/37 (Ê) | | | 838 | | | | 767 | |
Series 2007-A1 Class 7A1
2.724% due 02/25/37 (Ê) | | | 246 | | | | 236 | |
Citicorp Mortgage Securities, Inc.
Series 2006-3 Class 1A9
5.750% due 06/25/36 | | | 2,665 | | | | 2,588 | |
Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
5.431% due 10/15/49 | | | 2,001 | | | | 2,272 | |
Series 2007-C6 Class A4
5.885% due 12/10/49 | | | 3,155 | | | | 3,623 | |
Citigroup Mortgage Loan Trust, Inc.
Series 2004-NCM2 Class 1CB2
6.750% due 08/25/34 | | | 204 | | | | 217 | |
Series 2005-11 Class A2A
2.580% due 10/25/35 (Ê) | | | 207 | | | | 184 | |
Series 2006-AR6 Class 1A1
5.853% due 08/25/36 (Ê) | | | 1,443 | | | | 1,263 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2006-AR7 Class 1A4A
5.250% due 11/25/36 (Ê) | | | 5,938 | | | | 4,102 | |
Series 2007-6 Class 1A4A
5.573% due 03/25/37 (Ê) | | | 2,041 | | | | 1,095 | |
Series 2007-10 Class 2A3A
5.949% due 09/25/37 (Ê) | | | 1,198 | | | | 793 | |
Series 2007-10 Class 2A4A
6.132% due 09/25/37 (Ê) | | | 221 | | | | 158 | |
Series 2007-AR4 Class 1A1A
5.784% due 03/25/37 (Ê) | | | 1,510 | | | | 1,311 | |
Series 2007-AR8 Class 2A1A
5.003% due 07/25/37 (Ê) | | | 2,582 | | | | 1,676 | |
Series 2008-RR1 Class A1A1
0.309% due 01/25/37 (Ê)(Þ) | | | 180 | | | | 95 | |
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.400% due 07/15/44 | | | 5,180 | | | | 5,774 | |
Series 2007-CD4 Class A4
5.322% due 12/11/49 | | | 4,030 | | | | 4,465 | |
Commercial Mortgage Acceptance Corp.
Series 1998-C2 Class F
5.440% due 09/15/30 (Þ) | | | 392 | | | | 405 | |
Commercial Mortgage Asset Trust
Series 1999-C1 Class C
7.350% due 01/17/32 | | | 385 | | | | 412 | |
Series 1999-C1 Class D
7.350% due 01/17/32 | | | 1,675 | | | | 1,784 | |
Commercial Mortgage Pass Through Certificates
Series 2003-LB1A Class A2
4.084% due 06/10/38 | | | 3,825 | | | | 3,911 | |
Series 2006-C7 Class A2
5.690% due 06/10/46 | | | 12 | | | | 12 | |
Series 2006-C8 Class A4
5.306% due 12/10/46 | | | 1,400 | | | | 1,571 | |
Series 2006-C8 Class AM
5.347% due 12/10/46 | | | 800 | | | | 807 | |
Series 2007-C9 Class A4
6.006% due 12/10/49 | | | 6,771 | | | | 7,845 | |
Series 2010-RR1 Class GEA
5.543% due 12/11/49 (Þ) | | | 7,300 | | | | 8,074 | |
Series 2011-THL Class A
3.376% due 06/09/28 (Þ) | | | 4,680 | | | | 4,778 | |
Series 2012-LC4 Class AM
4.063% due 12/10/44 | | | 1,725 | | | | 1,757 | |
Series 2012-LC4 Class B
4.934% due 12/10/44 | | | 1,300 | | | | 1,341 | |
Series 2012-LC4 Class C
5.825% due 12/10/44 | | | 700 | | | | 691 | |
Countrywide Alternative Loan Trust
Series 2003-20CB Class 1A2
5.500% due 10/25/33 | | | 311 | | | | 323 | |
Series 2005-16 Class A1
1.804% due 06/25/35 (Ê) | | | 2,449 | | | | 1,571 | |
Series 2005-38 Class A1
1.658% due 09/25/35 (Ê) | | | 1,010 | | | | 668 | |
| | |
| Russell Strategic Bond Fund | | 237 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2005-51 Class 4A1
0.560% due 11/20/35 (Ê) | | | 471 | | | | 267 | |
Series 2005-58 Class A2
0.630% due 12/20/35 (Ê) | | | 1,320 | | | | 349 | |
Series 2005-59 Class 1A1
0.570% due 11/20/35 (Ê) | | | 2,206 | | | | 1,247 | |
Series 2005-1CB Class 2A2
5.500% due 03/25/35 | | | 1,110 | | | | 936 | |
Series 2005-85CB Class 2A2
5.500% due 02/25/36 | | | 25 | | | | 18 | |
Series 2006-6CB Class 1A10
5.500% due 05/25/36 | | | 237 | | | | 163 | |
Series 2006-23CB Class 1A6
6.000% due 08/25/36 | | | 2,100 | | | | 1,459 | |
Series 2006-24CB Class A1
6.000% due 06/25/36 | | | 658 | | | | 528 | |
Series 2006-36T2 Class 1A9
1.139% due 12/25/36 (Ê) | | | 2,266 | | | | 1,198 | |
Series 2006-45T1 Class 2A2
6.000% due 02/25/37 | | | 2,276 | | | | 1,517 | |
Series 2006-OA2 Class A5
0.470% due 05/20/46 (Ê) | | | 101 | | | | 41 | |
Series 2006-OA6 Class 1A3
0.509% due 07/25/46 (Ê) | | | 978 | | | | 357 | |
Series 2006-OA16 Class A2
0.429% due 10/25/46 (Ê) | | | 16,866 | | | | 10,023 | |
Series 2006-OA21 Class A1
0.430% due 03/20/47 (Ê) | | | 1,868 | | | | 990 | |
Series 2007-11T1 Class A21
6.000% due 05/25/37 | | | 870 | | | | 612 | |
Series 2007-15CB Class A5
5.750% due 07/25/37 | | | 611 | | | | 440 | |
Series 2007-15CB Class A7
6.000% due 07/25/37 | | | 2,290 | | | | 1,705 | |
Series 2007-J2 Class 2A1
6.000% due 07/25/37 | | | 17,519 | | | | 13,759 | |
Series 2007-OA4 Class A1
0.409% due 05/25/47 (Ê) | | | 3,252 | | | | 2,040 | |
Series 2007-OA6 Class A1B
0.439% due 06/25/37 (Ê) | | | 1,415 | | | | 929 | |
Series 2007-OA11 Class A1A
1.538% due 11/25/47 (Ê) | | | 6,729 | | | | 3,678 | |
Countrywide Home Loan Mortgage Pass Through Trust
Series 2003-52 Class A1
2.668% due 02/19/34 (Ê) | | | 1,329 | | | | 1,187 | |
Series 2004-22 Class A3
2.620% due 11/25/34 (Ê) | | | 1,565 | | | | 1,289 | |
Series 2004-HYB6 Class A2
2.639% due 11/20/34 (Ê) | | | 1,192 | | | | 964 | |
Series 2004-HYB9 Class 1A1
2.661% due 02/20/35 (Ê) | | | 2,643 | | | | 2,162 | |
Series 2004-J9 Class 2A1
5.250% due 01/25/35 | | | 305 | | | | 304 | |
Series 2005-11 Class 5A1
0.539% due 03/25/35 (Ê) | | | 41 | | | | 24 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2005-27 Class 2A1
5.500% due 12/25/35 | | | 4,615 | | | | 4,155 | |
Series 2005-HYB9 Class 3A2A
2.595% due 02/20/36 (Ê) | | | 293 | | | | 215 | |
Series 2005-R2 Class 2A4
8.500% due 06/25/35 (Þ) | | | 202 | | | | 208 | |
Series 2006-1 Class A2
6.000% due 03/25/36 | | | 1,075 | | | | 885 | |
Series 2006-1 Class A3
6.000% due 03/25/36 | | | 278 | | | | 32 | |
Series 2006-13 Class 1A23
6.250% due 09/25/36 | | | 86 | | | | 8 | |
Series 2006-21 Class A8
5.750% due 02/25/37 | | | 4,857 | | | | 3,890 | |
Series 2007-4 Class 1A10
6.000% due 05/25/37 | | | 10,100 | | | | 8,081 | |
Series 2007-9 Class A11
5.750% due 07/25/37 | | | 1,900 | | | | 1,654 | |
Series 2007-14 Class A19
6.000% due 09/25/37 | | | 86 | | | | 64 | |
Series 2007-15 Class 2A2
6.500% due 09/25/37 | | | 602 | | | | 481 | |
Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-30 Class DB1
7.378% due 11/25/32 | | | 559 | | | | 557 | |
Series 2002-CKN2 Class C1
6.376% due 04/15/37 | | | 945 | | | | 954 | |
Series 2002-CKS4 Class B
5.333% due 11/15/36 | | | 2,525 | | | | 2,541 | |
Series 2002-CP3 Class A3
5.603% due 07/15/35 | | | 1,288 | | | | 1,287 | |
Series 2002-CP3 Class C
5.510% due 07/15/35 | | | 3,770 | | | | 3,764 | |
Series 2003-C5 Class D
5.116% due 12/15/36 | | | 3,530 | | | | 3,570 | |
Series 2003-CPN1 Class A2
4.597% due 03/15/35 | | | 386 | | | | 392 | |
Series 2004-1 Class 3A1
7.000% due 02/25/34 | | | 34 | | | | 36 | |
Series 2005-9 Class 2A1
5.500% due 10/25/35 | | | 4,509 | | | | 4,024 | |
Series 2005-C2 Class A3
4.691% due 04/15/37 | | | 2,990 | | | | 3,103 | |
Series 2005-C4 Class A3
5.120% due 08/15/38 | | | 94 | | | | 94 | |
Credit Suisse Mortgage Capital Certificates
Series 2006-8 Class 4A1
6.500% due 10/25/21 | | | 4,856 | | | | 4,099 | |
Series 2006-C3 Class B
6.008% due 06/15/38 | | | 2,153 | | | | 1,543 | |
Series 2006-C5 Class A3
5.311% due 12/15/39 | | | 6,965 | | | | 7,742 | |
Series 2006-TF2A Class D
0.540% due 10/15/21 (Ê)(Þ) | | | 724 | | | | 653 | |
Series 2007-2 Class 3A4
5.500% due 03/25/37 | | | 4,937 | | | | 4,469 | |
| | | | |
| | 238 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2007-C1 Class A3
5.383% due 02/15/40 | | | 5,350 | | | | 5,575 | |
Series 2009-8R Class 5A1
5.737% due 05/26/37 (Ê)(Þ) | | | 233 | | | | 239 | |
DBRR Trust
Series 2011-LC2 Class A4A
4.537% due 07/12/44 (Þ) | | | 3,265 | | | | 3,674 | |
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust
Series 2003-4XS Class A6A
4.820% due 10/25/33 | | | 302 | | | | 296 | |
Series 2007-AR3 Class 2A4
0.589% due 06/25/37 (Ê) | | | 4,889 | | | | 1,156 | |
Series 2007-OA1 Class A1
0.389% due 02/25/47 (Ê) | | | 5,899 | | | | 2,882 | |
Series 2007-OA2 Class A1
0.928% due 04/25/47 (Ê) | | | 13,775 | | | | 8,913 | |
Downey Savings & Loan Association Mortgage Loan Trust
Series 2006-AR1 Class 2A1A
1.098% due 04/19/47 (Ê) | | | 1,460 | | | | 903 | |
Fannie Mae
6.500% due 2015 | | | 2 | | | | 2 | |
5.000% due 2016 | | | 73 | | | | 79 | |
6.000% due 2016 | | | 71 | | | | 77 | |
8.000% due 2016 | | | 3 | | | | 3 | |
11.000% due 2016 | | | 28 | | | | 31 | |
5.000% due 2017 | | | 289 | | | | 313 | |
6.000% due 2017 | | | 111 | | | | 121 | |
6.500% due 2017 | | | 104 | | | | 116 | |
7.000% due 2017 | | | 8 | | | | 8 | |
8.000% due 2017 | | | 18 | | | | 19 | |
2.800% due 2018 | | | 4,897 | | | | 5,170 | |
3.740% due 2018 | | | 2,964 | | | | 3,237 | |
3.840% due 2018 | | | 3,480 | | | | 3,817 | |
4.000% due 2018 | | | 6,681 | | | | 7,158 | |
4.500% due 2018 | | | 767 | | | | 843 | |
5.000% due 2018 | | | 112 | | | | 123 | |
5.500% due 2018 | | | 78 | | | | 86 | |
6.500% due 2018 | | | 76 | | | | 85 | |
7.000% due 2018 | | | 47 | | | | 53 | |
10.000% due 2018 | | | 10 | | | | 12 | |
4.506% due 2019 | | | 9,000 | | | | 10,133 | |
5.000% due 2019 | | | 577 | | | | 632 | |
6.500% due 2019 | | | 41 | | | | 46 | |
3.416% due 2020 | | | 2,361 | | | | 2,532 | |
3.632% due 2020 | | | 1,771 | | | | 1,922 | |
3.763% due 2020 | | | 17,930 | | | | 19,576 | |
4.000% due 2020 | | | 26 | | | | 27 | |
4.250% due 2020 | | | 7,518 | | | | 8,385 | |
4.338% due 2020 | | | 7,696 | | | | 8,667 | |
6.500% due 2020 | | | 17 | | | | 19 | |
8.000% due 2020 | | | 3 | | | | 3 | |
5.500% due 2021 | | | 371 | | | | 407 | |
5.500% due 2022 | | | 2,403 | | | | 2,626 | |
6.500% due 2022 | | | 24 | | | | 27 | |
5.500% due 2023 | | | 3,245 | | | | 3,563 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
4.000% due 2024 | | | 1,150 | | | | 1,223 | |
5.000% due 2024 | | | 404 | | | | 439 | |
5.500% due 2024 | | | 2,223 | | | | 2,430 | |
7.500% due 2024 | | | 2 | | | | 2 | |
8.000% due 2024 | | | 38 | | | | 45 | |
10.000% due 2024 | | | 6 | | | | 7 | |
2.342% due 2025 (Ê) | | | 13 | | | | 13 | |
4.000% due 2025 | | | 7,864 | | | | 8,369 | |
4.500% due 2025 | | | 224 | | | | 243 | |
5.500% due 2025 | | | 13,372 | | | | 14,629 | |
7.000% due 2025 | | | 1 | | | | 1 | |
2.356% due 2026 (Ê) | | | 202 | | | | 215 | |
3.500% due 2026 | | | 39,545 | | | | 42,390 | |
4.000% due 2026 | | | 1,182 | | | | 1,260 | |
6.000% due 2026 | | | 607 | | | | 673 | |
7.000% due 2026 | | | 69 | | | | 81 | |
9.000% due 2026 | | | 13 | | | | 15 | |
6.000% due 2027 | | | 1,918 | | | | 2,125 | |
7.000% due 2027 | | | 3 | | | | 4 | |
7.500% due 2027 | | | 15 | | | | 15 | |
6.500% due 2028 | | | 122 | | | | 141 | |
7.000% due 2028 | | | 175 | | | | 208 | |
4.500% due 2029 | | | 6,376 | | | | 6,835 | |
5.000% due 2029 | | | 17 | | | | 19 | |
5.500% due 2029 | | | — | | | | — | |
6.500% due 2029 | | | 264 | | | | 304 | |
7.000% due 2029 | | | 956 | | | | 1,143 | |
7.500% due 2029 | | | 47 | | | | 57 | |
8.000% due 2029 | | | 2 | | | | 3 | |
8.500% due 2029 | | | 2 | | | | 2 | |
4.500% due 2030 | | | 2,000 | | | | 2,143 | |
6.500% due 2030 | | | 141 | | | | 162 | |
7.000% due 2030 | | | 374 | | | | 439 | |
7.500% due 2030 | | | 196 | | | | 223 | |
8.000% due 2030 | | | 196 | | | | 241 | |
8.500% due 2030 | | | 116 | | | | 136 | |
9.500% due 2030 | | | 53 | | | | 65 | |
4.000% due 2031 | | | 4,207 | | | | 4,507 | |
6.500% due 2031 | | | 222 | | | | 254 | |
7.000% due 2031 | | | 834 | | | | 988 | |
7.500% due 2031 | | | 322 | | | | 382 | |
8.000% due 2031 | | | 362 | | | | 426 | |
8.500% due 2031 | | | 222 | | | | 267 | |
6.500% due 2032 | | | 640 | | | | 735 | |
7.000% due 2032 | | | 2,092 | | | | 2,469 | |
7.500% due 2032 | | | 198 | | | | 236 | |
8.000% due 2032 | | | 10 | | | | 13 | |
8.500% due 2032 | | | 24 | | | | 30 | |
2.282% due 2033 (Ê) | | | 192 | | | | 203 | |
2.324% due 2033 (Ê) | | | 4 | | | | 4 | |
2.340% due 2033 (Ê) | | | 372 | | | | 392 | |
2.418% due 2033 (Ê) | | | 43 | | | | 46 | |
2.660% due 2033 (Ê) | | | 787 | | | | 840 | |
3.000% due 2033 (Ê) | | | 10 | | | | 10 | |
4.500% due 2033 | | | 1,033 | | | | 1,110 | |
5.000% due 2033 | | | 129 | | | | 143 | |
5.500% due 2033 | | | 34 | | | | 38 | |
| | |
| Russell Strategic Bond Fund | | 239 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
6.500% due 2033 | | | 544 | | | | 623 | |
7.000% due 2033 | | | 784 | | | | 920 | |
2.322% due 2034 (Ê) | | | 990 | | | | 1,039 | |
2.452% due 2034 (Ê) | | | 435 | | | | 456 | |
2.513% due 2034 (Ê) | | | 903 | | | | 958 | |
2.561% due 2034 (Ê) | | �� | 169 | | | | 181 | |
5.000% due 2034 | | | 723 | | | | 786 | |
5.500% due 2034 | | | 5,936 | | | | 6,544 | |
6.000% due 2034 | | | 49 | | | | 55 | |
6.500% due 2034 | | | 622 | | | | 710 | |
7.000% due 2034 | | | 228 | | | | 267 | |
2.159% due 2035 (Ê) | | | 364 | | | | 379 | |
2.173% due 2035 (Ê) | | | 575 | | | | 604 | |
2.231% due 2035 (Ê) | | | 869 | | | | 913 | |
2.289% due 2035 (Ê) | | | 660 | | | | 701 | |
2.355% due 2035 (Ê) | | | 895 | | | | 953 | |
2.375% due 2035 (Ê) | | | 921 | | | | 980 | |
2.387% due 2035 (Ê) | | | 1,462 | | | | 1,548 | |
2.593% due 2035 (Ê) | | | 1,814 | | | | 1,920 | |
5.000% due 2035 | | | 51 | | | | 56 | |
5.025% due 2035 (Ê) | | | 184 | | | | 197 | |
5.500% due 2035 | | | 2,553 | | | | 2,811 | |
6.000% due 2035 | | | 2,275 | | | | 2,551 | |
6.500% due 2035 | | | 45 | | | | 52 | |
7.000% due 2035 | | | 192 | | | | 223 | |
7.500% due 2035 | | | 661 | | | | 806 | |
4.000% due 2036 | | | 95 | | | | 101 | |
5.500% due 2036 | | | 5,133 | | | | 5,602 | |
6.000% due 2036 | | | 4,172 | | | | 4,627 | |
6.340% due 2036 (Ê) | | | 22 | | | | 23 | |
6.500% due 2036 | | | 185 | | | | 209 | |
7.000% due 2036 | | | 373 | | | | 433 | |
4.000% due 2037 | | | 199 | | | | 211 | |
5.500% due 2037 | | | 24,870 | | | | 27,321 | |
6.000% due 2037 | | | 1,411 | | | | 1,567 | |
5.500% due 2038 | | | 1,509 | | | | 1,655 | |
6.000% due 2038 | | | 1,155 | | | | 1,282 | |
4.500% due 2039 | | | 3,983 | | | | 4,317 | |
5.500% due 2039 | | | 24 | | | | 27 | |
6.000% due 2039 | | | 1,730 | | | | 1,948 | |
1.569% due 2040 (Ê) | | | 201 | | | | 204 | |
4.000% due 2040 | | | 27,660 | | | | 29,411 | |
4.500% due 2040 | | | 139,382 | | | | 149,530 | |
4.000% due 2041 | | | 36,382 | | | | 38,685 | |
4.500% due 2041 | | | 57,379 | | | | 61,622 | |
5.000% due 2041 | | | 47,910 | | | | 52,286 | |
4.000% due 2042 | | | 1,011 | | | | 1,071 | |
4.500% due 2042 | | | 2,000 | | | | 2,147 | |
1.369% due 2043 (Ê) | | | 122 | | | | 123 | |
15 Year TBA (Ï) | | | | | | | | |
2.500% | | | 18,525 | | | | 18,959 | |
3.000% | | | 65,355 | | | | 68,194 | |
3.500% | | | 29,615 | | | | 31,244 | |
4.000% | | | 2,000 | | | | 2,127 | |
5.500% | | | 5,500 | | | | 6,005 | |
30 Year TBA (Ï) | | | | | | | | |
3.500% | | | 192,575 | | | | 199,910 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
4.000% | | | 342,800 | | | | 362,565 | |
4.500% | | | 2,430 | | | | 2,589 | |
5.000% | | | 30,435 | | | | 33,041 | |
5.500% | | | 34,410 | | | | 37,595 | |
6.000% | | | 22,510 | | | | 24,862 | |
6.500% | | | 8,000 | | | | 9,010 | |
Series 1997-281 Class 2
Interest Only STRIP
9.000% due 11/01/26 | | | 34 | | | | 7 | |
Series 2000-306 Class IO
Interest Only STRIP
8.000% due 05/01/30 | | | 35 | | | | 8 | |
Series 2001-317 Class 2
Interest Only STRIP
8.000% due 12/01/31 | | | 55 | | | | 12 | |
Series 2002-320 Class 2
Interest Only STRIP
7.000% due 04/01/32 | | | 18 | | | | 3 | |
Series 2003-339 Class 23
Interest Only STRIP
5.000% due 07/01/18 | | | 1,113 | | | | 91 | |
Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33 | | | 1,385 | | | | 192 | |
Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18 | | | 3,087 | | | | 215 | |
Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19 | | | 3,387 | | | | 236 | |
Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35 | | | 6,181 | | | | 858 | |
Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36 | | | 1,006 | | | | 138 | |
Fannie Mae Grantor Trust
Series 1999-T2 Class A1
7.500% due 01/19/39 | | | 52 | | | | 59 | |
Series 2001-T4 Class A1
7.500% due 07/25/41 | | | 2,440 | | | | 2,852 | |
Series 2001-T8 Class A2
9.500% due 07/25/41 | | | 147 | | | | 178 | |
Series 2001-T10 Class A2
7.500% due 12/25/41 | | | 5,469 | | | | 6,346 | |
Series 2002-T19 Class A1
6.500% due 07/25/42 | | | 429 | | | | 497 | |
Series 2004-T1 Class 1A2
6.500% due 01/25/44 | | | 24 | | | | 26 | |
Fannie Mae REMICS
Series 1997-68 Class SC
Interest Only STRIP
8.250% due 05/18/27 (Ê) | | | 47 | | | | 11 | |
Series 1999-56 Class Z
7.000% due 12/18/29 | | | 625 | | | | 733 | |
Series 2001-4 Class SA
Interest Only STRIP
7.310% due 02/17/31 (Ê) | | | 60 | | | | 7 | |
| | | | |
| | 240 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2002-57 Class PG
5.500% due 09/25/17 | | | 3,225 | | | | 3,480 | |
Series 2003-25 Class IK
Interest Only STRIP
7.000% due 04/25/33 | | | 171 | | | | 35 | |
Series 2003-32 Class FH
0.639% due 11/25/22 (Ê) | | | 606 | | | | 608 | |
Series 2003-32 Class UI
Interest Only STRIP
6.000% due 05/25/33 | | | 198 | | | | 38 | |
Series 2003-33 Class IA
Interest Only STRIP
6.500% due 05/25/33 | | | 939 | | | | 182 | |
Series 2003-35 Class FY
0.639% due 05/25/18 (Ê) | | | 1,884 | | | | 1,893 | |
Series 2003-35 Class IU
Interest Only STRIP
6.000% due 05/25/33 | | | 226 | | | | 40 | |
Series 2003-35 Class UI
Interest Only STRIP
6.500% due 05/25/33 | | | 208 | | | | 39 | |
Series 2003-64 Class JI
Interest Only STRIP
6.000% due 07/25/33 | | | 184 | | | | 30 | |
Series 2003-82 Class IA
Interest Only STRIP
6.000% due 08/25/32 | | | 18 | | | | — | |
Series 2004-70 Class EB
5.000% due 10/25/24 | | | 3,450 | | | | 3,785 | |
Series 2005-110 Class MB
5.500% due 09/25/35 | | | 1,089 | | | | 1,200 | |
Series 2005-117 Class LC
5.500% due 11/25/35 | | | 8,230 | | | | 9,026 | |
Series 2006-5 Class 3A2
2.546% due 05/25/35 (Ê) | | | 211 | | | | 219 | |
Series 2006-22 Class CE
4.500% due 08/25/23 | | | 1,895 | | | | 2,101 | |
Series 2006-118 Class A1
0.299% due 12/25/36 (Ê) | | | 146 | | | | 144 | |
Series 2007-73 Class A1
0.299% due 07/25/37 (Ê) | | | 1,311 | | | | 1,255 | |
Series 2009-39 Class LB
4.500% due 06/25/29 | | | 1,964 | | | | 2,166 | |
Series 2009-70 Class PS
Interest Only STRIP
6.511% due 01/25/37 (Ê) | | | 35,494 | | | | 5,799 | |
Series 2009-71 Class MB
4.500% due 09/25/24 | | | 2,970 | | | | 3,290 | |
Series 2009-89 Class A1
5.410% due 05/25/35 | | | 3,359 | | | | 3,531 | |
Series 2009-96 Class DB
4.000% due 11/25/29 | | | 8,343 | | | | 9,062 | |
Series 2010-85 Class NJ
4.500% due 08/25/40 | | | 7,396 | | | | 7,981 | |
Series 2010-95 Class S
Interest Only STRIP
6.361% due 09/25/40 (Ê) | | | 27,048 | | | | 5,143 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2010-112 Class PI
Interest Only STRIP
6.000% due 10/25/40 | | | 25,101 | | | | 4,221 | |
Series 2011-63 Class FG
0.689% due 07/25/41 (Ê) | | | 4,648 | | | | 4,653 | |
Fannie Mae Whole Loan
Series 2003-W1 Class 2A
7.073% due 12/25/42 | | | 90 | | | | 105 | |
Series 2003-W4 Class 4A
7.281% due 10/25/42 | | | 42 | | | | 49 | |
Series 2003-W17 Class 1A6
5.310% due 08/25/33 | | | 2,180 | | | | 2,240 | |
Series 2004-W2 Class 2A2
7.000% due 02/25/44 | | | 4,014 | | | | 4,606 | |
Series 2004-W9 Class 2A1
6.500% due 02/25/44 | | | 204 | | | | 233 | |
Series 2004-W11 Class 1A2
6.500% due 05/25/44 | | | 438 | | | | 499 | |
Fannie Mae-Aces
Series 2006-M2 Class A2F
5.259% due 05/25/20 | | | 355 | | | | 405 | |
FDIC Structured Sale Guaranteed Notes
Series 2010-L2A Class A
3.000% due 09/30/19 (Þ) | | | 6,009 | | | | 6,044 | |
Series 2010-S1 Class 1A
0.791% due 02/25/48 (Å)(Ê) | | | 3,188 | | | | 3,189 | |
FDIC Trust
Series 2010-R1 Class A
2.184% due 05/25/50 (Þ) | | | 2,670 | | | | 2,667 | |
Series 2011-R1 Class A
2.672% due 07/25/26 (Þ) | | | 11,139 | | | | 11,442 | |
Federal Home Loan Mortgage Corp.
Multifamily Structured Pass Through Certificates
Series 2011-K014 Class X1 Interest Only STRIP
1.451% due 04/25/21 | | | 21,916 | | | | 1,917 | |
Series 2011-K702 Class X1 Interest Only STRIP
1.729% due 02/25/18 | | | 77,640 | | | | 5,889 | |
Series 2011-K703 Class A2
2.699% due 05/25/18 | | | 7,000 | | | | 7,325 | |
Series 2011-KAIV Class A2
3.989% due 06/25/46 | | | 6,300 | | | | 6,992 | |
Series 2012-K501 Class X1A Interest Only STRIP
1.758% due 08/25/16 | | | 48,205 | | | | 2,784 | |
Series 2012-K705 Class A2
2.303% due 09/25/18 | | | 5,900 | | | | 6,040 | |
Series 2012-K706 Class A2
2.323% due 10/25/18 | | | 22,000 | | | | 22,531 | |
Series 2012-K707 Class A2
2.220% due 12/25/18 | | | 4,700 | | | | 4,780 | |
Federal Home Loan Mortgage Corp.
Structured Pass Through Securities
Series 2002-42 Class A6
9.500% due 02/25/42 | | | 69 | | | | 83 | |
| | |
| Russell Strategic Bond Fund | | 241 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2003-58 Class 2A
6.500% due 09/25/43 | | | 237 | | | | 274 | |
Series 2005-63 Class 1A1
1.369% due 02/25/45 (Ê) | | | 98 | | | | 95 | |
First Horizon Alternative Mortgage Securities
Series 2004-AA6 Class A1
2.371% due 01/25/35 (Ê) | | | 608 | | | | 529 | |
Series 2005-AA2 Class 1A1
2.623% due 03/25/35 (Ê) | | | 169 | | | | 140 | |
Series 2005-AA5 Class 1A1
2.377% due 07/25/35 (Ê) | | | 203 | | | | 137 | |
First Horizon Asset Securities, Inc.
Series 2003-5 Class 1A17
8.000% due 07/25/33 | | | 22 | | | | 23 | |
Series 2005-AR3 Class 2A1
2.730% due 08/25/35 (Ê) | | | 536 | | | | 437 | |
Series 2005-AR4 Class 2A1
2.621% due 10/25/35 (Ê) | | | 2,229 | | | | 1,777 | |
Series 2006-AR4 Class 1A3
2.585% due 01/25/37 (Ê) | | | 30 | | | | 1 | |
First Union National Bank-Bank of America
Commercial Mortgage Trust
Series 2001-C1 Class IO1 Interest Only STRIP
1.520% due 03/15/33 (Þ) | | | 16,084 | | | | — | |
First Union-Lehman Brothers-Bank of America
Series 1998-C2 Class D
6.778% due 11/18/35 | | | 183 | | | | 187 | |
Fontainebleau Miami Beach Trust
2.887% due 05/05/27 | | | 2,825 | | | | 2,852 | |
Freddie Mac 11.000% due 2015
6.000% due 2016 | | | 3 29 | | | | 3 32 | |
10.000% due 2016 | | | 30 | | | | 30 | |
5.500% due 2017 | | | 51 | | | | 55 | |
8.500% due 2017 | | | 15 | | | | 17 | |
10.500% due 2017 | | | 3 | | | | 3 | |
4.500% due 2018 | | | 39 | | | | 43 | |
5.000% due 2018 | | | 1,218 | | | | 1,316 | |
5.500% due 2018 | | | 20 | | | | 22 | |
5.000% due 2019 | | | 2,219 | | | | 2,411 | |
5.500% due 2019 | | | 58 | | | | 63 | |
5.500% due 2020 | | | 421 | | | | 458 | |
8.000% due 2020 | | | 52 | | | | 61 | |
10.000% due 2020 | | | 13 | | | | 16 | |
11.000% due 2020 | | | 14 | | | | 17 | |
5.000% due 2021 | | | 430 | | | | 465 | |
10.500% due 2021 | | | 10 | | | | 12 | |
3.500% due 2025 | | | 13,326 | | | | 14,167 | |
6.500% due 2025 | | | 2 | | | | 3 | |
8.500% due 2025 | | | 18 | | | | 21 | |
2.594% due 2027 (Ê) | | | 13 | | | | 14 | |
7.000% due 2027 | | | 87 | | | | 104 | |
8.500% due 2027 | | | 113 | | | | 139 | |
2.332% due 2028 (Ê) | | | 13 | | | | 14 | |
2.496% due 2028 (Ê) | | | 11 | | | | 11 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
7.500% due 2028 | | | 23 | | | | 27 | |
6.500% due 2029 | | | 54 | | | | 62 | |
7.500% due 2029 | | | 42 | | | | 51 | |
2.606% due 2030 (Ê) | | | 22 | | | | 23 | |
7.000% due 2030 | | | 20 | | | | 23 | |
7.500% due 2030 | | | 208 | | | | 252 | |
8.000% due 2030 | | | 28 | | | | 33 | |
8.500% due 2030 | | | 33 | | | | 41 | |
6.500% due 2031 | | | 364 | | | | 418 | |
7.000% due 2031 | | | 228 | | | | 270 | |
7.500% due 2031 | | | 69 | | | | 80 | |
8.000% due 2031 | | | 155 | | | | 181 | |
7.000% due 2032 | | | 96 | | | | 115 | |
7.500% due 2032 | | | 73 | | | | 83 | |
2.365% due 2033 (Ê) | | | 296 | | | | 314 | |
2.500% due 2033 (Ê) | | | 51 | | | | 54 | |
6.000% due 2033 | | | 36 | | | | 41 | |
6.500% due 2033 | | | 95 | | | | 108 | |
7.500% due 2033 | | | 48 | | | | 58 | |
2.635% due 2034 (Ê) | | | 525 | | | | 560 | |
2.698% due 2034 (Ê) | | | 1,152 | | | | 1,234 | |
5.500% due 2034 | | | 522 | | | | 573 | |
6.000% due 2034 | | | 54 | | | | 61 | |
2.375% due 2035 (Ê) | | | 1,069 | | | | 1,138 | |
2.495% due 2035 (Ê) | | | 1,545 | | | | 1,644 | |
5.000% due 2035 | | | 179 | | | | 198 | |
5.075% due 2035 (Ê) | | | 155 | | | | 167 | |
5.500% due 2035 | | | 897 | | | | 984 | |
6.000% due 2035 | | | 283 | | | | 317 | |
4.000% due 2036 | | | 596 | | | | 630 | |
5.500% due 2036 | | | 270 | | | | 297 | |
6.000% due 2036 | | | 137 | | | | 152 | |
6.000% due 2037 | | | 155 | | | | 174 | |
5.500% due 2038 | | | 36,867 | | | | 41,132 | |
6.000% due 2038 | | | 8,644 | | | | 9,636 | |
6.500% due 2038 | | | 365 | | | | 412 | |
4.500% due 2039 | | | 14,114 | | | | 15,485 | |
5.500% due 2039 | | | 4,217 | | | | 4,605 | |
6.000% due 2039 | | | 73 | | | | 82 | |
4.000% due 2040 | | | 15,480 | | | | 16,625 | |
4.500% due 2040 | | | 40,122 | | | | 44,024 | |
4.000% due 2041 | | | 67,436 | | | | 72,012 | |
4.500% due 2041 | | | 68 | | | | 73 | |
15 Year TBA (Ï)
2.500% | | | 10,540 | | | | 10,780 | |
30 Year TBA (Ï)
3.500% | | | 17,050 | | | | 17,671 | |
4.000% | | | 54,000 | | | | 56,743 | |
5.000% | | | — | | | | — | |
5.000% | | | 21,085 | | | | 22,745 | |
5.500% | | | — | | | | 1 | |
Freddie Mac Mortgage Trust
Series 2010-K7 Class B
5.619% due 04/25/20 (Þ) | | | 8,310 | | | | 8,934 | |
Freddie Mac Reference REMIC
Series 2006-R006 Class ZA
6.000% due 04/15/36 | | | 4,790 | | | | 5,611 | |
| | | | |
| | 242 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Freddie Mac REMICS
Series 1999-2129 Class SG Interest Only STRIP
6.750% due 06/17/27 (Ê) | | | 833 | | | | 182 | |
Series 2000-2247 Class SC Interest Only STRIP
7.260% due 08/15/30 (Ê) | | | 25 | | | | 5 | |
Series 2000-2266 Class F
0.690% due 11/15/30 (Ê) | | | 42 | | | | 42 | |
Series 2002-2463 Class SJ Interest Only STRIP
7.760% due 03/15/32 (Ê) | | | 98 | | | | 21 | |
Series 2003-2610 Class UI Interest Only STRIP
6.500% due 05/15/33 | | | 30 | | | | 6 | |
Series 2003-2621 Class QH
5.000% due 05/15/33 | | | 1,615 | | | | 1,745 | |
Series 2003-2624 Class QH
5.000% due 06/15/33 | | | 1,655 | | | | 1,870 | |
Series 2003-2649 Class IM Interest Only STRIP
7.000% due 07/15/33 | | | 221 | | | | 47 | |
Series 2003-2697 Class LG
4.500% due 10/15/23 | | | 1,246 | | | | 1,346 | |
Series 2003-2725 Class TA
4.500% due 12/15/33 | | | 1,300 | | | | 1,474 | |
Series 2004-2752 Class FM
0.590% due 12/15/30 (Ê) | | | 27 | | | | 27 | |
Series 2004-2778 Class UF
0.540% due 06/15/33 (Ê) | | | 169 | | | | 169 | |
Series 2006-3123 Class HT
5.000% due 03/15/26 | | | 3,916 | | | | 4,393 | |
Series 2006-3149 Class LF
0.540% due 05/15/36 (Ê) | | | 333 | | | | 332 | |
Series 2006-3150 Class EQ
5.000% due 05/15/26 | | | 1,920 | | | | 2,164 | |
Series 2007-3335 Class BF
0.390% due 07/15/19 (Ê) | | | 1,007 | | | | 1,006 | |
Series 2007-3335 Class FT
0.390% due 08/15/19 (Ê) | | | 2,539 | | | | 2,534 | |
Series 2007-3345 Class FP
0.440% due 11/15/36 (Ê) | | | 4,683 | | | | 4,667 | |
Series 2007-3345 Class PF
0.420% due 05/15/36 (Ê) | | | 4,592 | | | | 4,575 | |
Series 2009-3558 Class G
4.000% due 08/15/24 | | | 150 | | | | 164 | |
Series 2010-3640 Class JA
1.500% due 03/15/15 | | | 6,921 | | | | 6,952 | |
Series 2010-3653 Class B
4.500% due 04/15/30 | | | 5,760 | | | | 6,391 | |
Series 2010-3704 Class DC
4.000% due 11/15/36 | | | 2,458 | | | | 2,671 | |
Series 2011-3820 Class DA
4.000% due 11/15/35 | | | 14,409 | | | | 15,333 | |
Series 2011-3868 Class FA
0.640% due 05/15/41 (Ê) | | | 1,891 | | | | 1,891 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Freddie Mac Strips
Series 1998-191 Class IO Interest Only STRIP
8.000% due 01/01/28 | | | 31 | | | | 8 | |
Series 1998-194 Class IO Interest Only STRIP
6.500% due 04/01/28 | | | 106 | | | | 22 | |
Series 2001-212 Class IO Interest Only STRIP
6.000% due 05/01/31 | | | 119 | | | | 26 | |
Series 2001-215 Class IO Interest Only STRIP
8.000% due 06/15/31 | | | 89 | | | | 20 | |
Series 2008-256 Class 56 Interest Only STRIP
4.500% due 05/15/23 (Å) | | | 10,582 | | | | 831 | |
FREMF Mortgage Trust
Series 2011-K702 Class B
4.936% due 04/25/44 (Þ) | | | 5,570 | | | | 5,693 | |
Series 2012-K17 Class B
4.498% due 12/25/44 (Þ) | | | 1,500 | | | | 1,474 | |
Series 2012-K707 Class C
3.882% due 01/25/47 (Å) | | | 1,100 | | | | 978 | |
GE Capital Commercial Mortgage Corp.
Series 2003-C2 Class F
5.688% due 07/10/37 (Þ) | | | 600 | | | | 603 | |
Series 2005-C3 Class A4
5.046% due 07/10/45 | | | 295 | | | | 295 | |
Series 2005-C4 Class A4
5.437% due 11/10/45 | | | 2,320 | | | | 2,571 | |
Ginnie Mae I
11.000% due 2013 | | | 1 | | | | 1 | |
10.500% due 2015 | | | 22 | | | | 22 | |
11.000% due 2015 | | | — | | | | — | |
7.000% due 2016 | | | 2 | | | | 2 | |
10.500% due 2016 | | | 26 | | | | 26 | |
8.000% due 2017 | | | — | | | | — | |
11.000% due 2020 | | | 12 | | | | 13 | |
10.500% due 2021 | | | 20 | | | | 23 | |
8.000% due 2022 | | | 9 | | | | 11 | |
10.000% due 2022 | | | 40 | | | | 46 | |
7.500% due 2024 | | | 12 | | | | 14 | |
3.950% due 2025 | | | 1,633 | | | | 1,756 | |
8.000% due 2025 | | | 7 | | | | 9 | |
10.000% due 2025 | | | 35 | | | | 41 | |
8.000% due 2030 | | | 179 | | | | 220 | |
7.500% due 2031 | | | 44 | | | | 48 | |
8.000% due 2031 | | | 2 | | | | 2 | |
7.500% due 2032 | | | 10 | | | | 12 | |
4.500% due 2039 | | | 39,515 | | | | 43,266 | |
30 Year TBA (Ï)
5.000% | | | 1,000 | | | | 1,108 | |
Ginnie Mae II
1.625% due 2023 (Ê) | | | 209 | | | | 216 | |
2.375% due 2023 (Ê) | | | 124 | | | | 129 | |
1.625% due 2024 (Ê) | | | 214 | | | | 222 | |
2.000% due 2024 (Ê) | | | 77 | | | | 79 | |
| | |
| Russell Strategic Bond Fund | | 243 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
2.000% due 2025 (Ê) | | | 14 | | | | 15 | |
2.375% due 2025 (Ê) | | | 78 | | | | 80 | |
2.500% due 2025 (Ê) | | | 108 | | | | 112 | |
3.000% due 2025 (Ê) | | | 37 | | | | 39 | |
1.625% due 2026 (Ê) | | | 68 | | | | 70 | |
8.500% due 2026 | | | 21 | | | | 27 | |
1.625% due 2027 (Ê) | | | 132 | | | | 137 | |
2.375% due 2027 (Ê) | | | 92 | | | | 95 | |
2.375% due 2028 (Ê) | | | 2 | | | | 2 | |
1.625% due 2029 (Ê) | | | 154 | | | | 159 | |
2.375% due 2030 (Ê) | | | 59 | | | | 61 | |
4.502% due 2061 | | | 3,607 | | | | 4,005 | |
4.700% due 2061 | | | 8,001 | | | | 9,052 | |
30 Year TBA (Ï)
3.500% | | | 16,750 | | | | 17,632 | |
4.000% | | | 2,000 | | | | 2,163 | |
GMAC Commercial Mortgage Securities, Inc.
Series 2004-C3 Class A4
4.547% due 12/10/41 | | | 1,732 | | | | 1,737 | |
GMAC Mortgage Corp. Loan Trust
Series 2005-AR2 Class 4A
4.946% due 05/25/35 (Ê) | | | 4,881 | | | | 4,517 | |
Goldman Sachs Mortgage Securities Corp. II
Series 2007-GG10 Class A4
5.980% due 08/10/45 | | | 5,600 | | | | 6,220 | |
Government National Mortgage Association
Series 1999-27 Class SE
Interest Only STRIP
8.360% due 08/16/29 (Ê) | | | 112 | | | | 27 | |
Series 1999-44 Class SA
Interest Only STRIP
8.310% due 12/16/29 (Ê) | | | 151 | | | | 31 | |
Series 2000-29 Class S
Interest Only STRIP
8.260% due 09/20/30 (Ê) | | | 17 | | | | 4 | |
Series 2001-46 Class SA
Interest Only STRIP
7.340% due 09/16/31 (Ê) | | | 16 | | | | 4 | |
Series 2002-27 Class SA
Interest Only STRIP
7.760% due 05/16/32 (Ê) | | | 25 | | | | 6 | |
Series 2010-14 Class A
4.500% due 06/16/39 | | | 2,392 | | | | 2,640 | |
Series 2010-116 Class MP
3.500% due 09/16/40 | | | 19,993 | | | | 21,309 | |
Series 2011-67 Class B
3.863% due 10/16/47 | | | 3,395 | | | | 3,712 | |
Series 2011-127 Class IO
Interest Only STRIP
1.560% due 03/16/47 | | | 39,191 | | | | 3,065 | |
Greenpoint Mortgage Funding Trust
Series 2005-AR5 Class 1A1
0.509% due 11/25/45 (Ê) | | | 201 | | | | 124 | |
Series 2006-AR6 Class A1A
0.319% due 10/25/46 (Ê) | | | 51 | | | | 50 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2006-AR8 Class 1A1A
0.319% due 01/25/47 (Ê) | | | 22 | | | | 21 | |
Greenpoint Mortgage Pass-Through Certificates
Series 2003-1 Class A1
3.130% due 10/25/33 (Ê) | | | 776 | | | | 679 | |
Greenwich Capital Commercial Funding Corp.
Series 2002-C1 Class B
5.104% due 01/11/35 | | | 2,055 | | | | 2,086 | |
Series 2004-GG1 Class A7
5.317% due 06/10/36 | | | 9,435 | | | | 10,039 | |
Series 2005-GG3 Class A4
4.799% due 08/10/42 | | | 100 | | | | 108 | |
Series 2006-GG7 Class A4
6.081% due 07/10/38 | | | 10,790 | | | | 12,298 | |
Series 2007-GG9 Class A4
5.444% due 03/10/39 | | | 13,205 | | | | 14,612 | |
Series 2007-GG11 Class AJ
6.200% due 12/10/49 | | | 2,492 | | | | 1,610 | |
GS Mortgage Securities Corp. II
Series 2004-GG2 Class A4
4.964% due 08/10/38 | | | 821 | | | | 831 | |
Series 2006-GG6 Class A4
5.553% due 04/10/38 | | | 5,030 | | | | 5,604 | |
Series 2007-EOP Class A1
1.103% due 03/06/20 (Ê)(Þ) | | | 2,083 | | | | 2,072 | |
Series 2011-ALF Class A
2.716% due 02/10/21 (Þ) | | | 3,509 | | | | 3,569 | |
Series 2011-GC5 Class A4
3.707% due 08/10/44 | | | 11,240 | | | | 11,871 | |
GSMPS Mortgage Loan Trust
Series 1998-1 Class A
8.000% due 09/19/27 (Þ) | | | 98 | | | | 102 | |
Series 1998-3 Class A
7.750% due 09/19/27 (Þ) | | | 90 | | | | 95 | |
Series 1999-3 Class A
8.000% due 08/19/29 (Þ) | | | 237 | | | | 234 | |
Series 2005-RP1 Class 1A4
8.500% due 01/25/35 (Þ) | | | 734 | | | | 769 | |
Series 2006-RP1 Class 1A2
7.500% due 01/25/36 (Þ) | | | 1,878 | | | | 1,878 | |
Series 2006-RP1 Class 1A3
8.000% due 01/25/36 (Þ) | | | 1,570 | | | | 1,601 | |
GSR Mortgage Loan Trust
Series 2004-7 Class 1A1
2.452% due 06/25/34 (Ê) | | | 307 | | | | 272 | |
Series 2004-11 Class 1A1
2.776% due 09/25/34 (Ê) | | | 258 | | | | 204 | |
Series 2004-12 Class 2A3
2.764% due 12/25/34 (Ê) | | | 214 | | | | 180 | |
Series 2005-6F Class 1A6
5.250% due 07/25/35 | | | 3,625 | | | | 3,550 | |
Series 2005-AR4 Class 6A1
5.250% due 07/25/35 (Ê) | | | 4,026 | | | | 3,906 | |
Series 2005-AR7 Class 5A1
5.158% due 11/25/35 (Ê) | | | 4,054 | | | | 3,442 | |
| | | | |
| | 244 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2005-AR7 Class 6A1
5.133% due 11/25/35 (Ê) | | | 1,461 | | | | 1,398 | |
Series 2006-2F Class 2A17
5.750% due 02/25/36 | | | 3,700 | | | | 3,225 | |
Series 2006-3F Class 2A3
5.750% due 03/25/36 | | | 2,809 | | | | 2,435 | |
Series 2006-8F Class 4A17
6.000% due 09/25/36 | | | 4,026 | | | | 3,396 | |
Series 2007-AR2 Class 2A1
2.733% due 05/25/47 (Ê) | | | 7,625 | | | | 5,398 | |
Harborview Mortgage Loan Trust
Series 2005-2 Class 2A1A
0.460% due 05/19/35 (Ê) | | | 152 | | | | 96 | |
Series 2005-4 Class 3A1
2.838% due 07/19/35 (Ê) | | | 3,210 | | | | 2,307 | |
Series 2005-5 Class 2A1B
0.530% due 07/19/45 (Ê) | | | 257 | | | | 107 | |
Series 2005-10 Class 2A1B
0.620% due 11/19/35 (Ê) | | | 627 | | | | 193 | |
Series 2005-15 Class 2A11
0.510% due 10/20/45 (Ê) | | | 907 | | | | 591 | |
Series 2005-16 Class 3A1B
0.580% due 01/19/36 (Ê) | | | 755 | | | | 151 | |
Series 2006-10 Class 2A1B
0.480% due 11/19/36 (Ê) | | | 1,687 | | | | 462 | |
Series 2006-14 Class 2A1B
0.440% due 01/25/47 (Ê) | | | 1,266 | | | | 229 | |
Series 2007-7 Class 2A1A
1.239% due 11/25/47 (Ê) | | | 4,574 | | | | 3,211 | |
Impac Secured Assets CMN Owner Trust
Series 2005-2 Class A1
0.559% due 03/25/36 (Ê) | | | 710 | | | | 339 | |
Indymac Index Mortgage Loan Trust
Series 2004-AR11 Class 2A
2.591% due 12/25/34 (Ê) | | | 88 | | | | 67 | |
Series 2005-AR25 Class 1A21
5.260% due 12/25/35 (Ê) | | | 744 | | | | 546 | |
Series 2005-AR31 Class 1A1
2.451% due 01/25/36 (Ê) | | | 846 | | | | 521 | |
Series 2006-AR8 Class A3A
0.469% due 07/25/46 (Ê) | | | 11,136 | | | | 6,129 | |
Series 2006-AR35 Class 2A1A
0.409% due 01/25/37 (Ê) | | | 5,574 | | | | 2,992 | |
Series 2006-AR41 Class A3
0.419% due 02/25/37 (Ê) | | | 11,868 | | | | 5,727 | |
Series 2007-AR5 Class 1A1
3.319% due 05/25/37 (Ê) | | | 5,937 | | | | 2,503 | |
JPMorgan Alternative Loan Trust
Series 2006-A2 Class 3A1
2.795% due 05/25/36 (Ê) | | | 5,397 | | | | 3,182 | |
Series 2006-A4 Class A7
6.300% due 09/25/36 | | | 15,975 | | | | 5,296 | |
JPMorgan Chase Commercial
Mortgage Securities Corp.
Series 2002-C1 Class A3
5.376% due 07/12/37 | | | 577 | | | | 579 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2002-C2 Class A2
5.050% due 12/12/34 | | | 9,483 | | | | 9,600 | |
Series 2002-C2 Class B
5.211% due 12/12/34 | | | 120 | | | | 121 | |
Series 2003-C1 Class A2
4.985% due 01/12/37 | | | 3,650 | | | | 3,718 | |
Series 2006-CB15 Class A4
5.814% due 06/12/43 | | | 5,405 | | | | 6,078 | |
Series 2006-CB16 Class A4
5.552% due 05/12/45 | | | 3,960 | | | | 4,457 | |
Series 2006-LDP7 Class A4
6.065% due 04/15/45 | | | 5,405 | | | | 6,187 | |
Series 2006-LDP7 Class AJ
6.065% due 04/15/45 | | | 2,224 | | | | 1,929 | |
Series 2006-LDP8 Class A3B
5.447% due 05/15/45 | | | 3,675 | | | | 3,834 | |
Series 2006-LDP8 Class A4
5.399% due 05/15/45 | | | 3,705 | | | | 4,181 | |
Series 2006-LDP9 Class A3
5.336% due 05/15/47 | | | 3,270 | | | | 3,602 | |
Series 2007-CB18 Class A4
5.440% due 06/12/47 | | | 7,000 | | | | 7,844 | |
Series 2007-CB20 Class A4
5.794% due 02/12/51 | | | 6,400 | | | | 7,355 | |
Series 2007-CB20 Class AJ
6.285% due 02/12/51 | | | 1,700 | | | | 1,367 | |
Series 2007-LD12 Class A4
5.882% due 02/15/51 | | | 400 | | | | 449 | |
Series 2007-LDPX Class A3
5.420% due 01/15/49 | | | 200 | | | | 223 | |
Series 2010-CNTR Class A2
4.311% due 08/05/32 (Þ) | | | 5,904 | | | | 6,292 | |
Series 2012-C6 Class A3
3.507% due 05/15/45 | | | 3,775 | | | | 3,883 | |
JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1
5.003% due 02/25/35 (Ê) | | | 279 | | | | 278 | |
Series 2005-A4 Class 1A1
5.315% due 07/25/35 (Ê) | | | 860 | | | | 861 | |
Series 2005-A4 Class 2A1
2.817% due 07/25/35 (Ê) | | | 3,459 | | | | 2,915 | |
Series 2005-A8 Class 1A1
5.341% due 11/25/35 (Ê) | | | 3,355 | | | | 3,127 | |
Series 2005-S3 Class 1A2
5.750% due 01/25/36 | | | 202 | | | | 187 | |
Series 2006-A2 Class 2A1
5.457% due 04/25/36 (Ê) | | | 186 | | | | 148 | |
Series 2006-A6 Class 1A2
2.772% due 10/25/36 (Ê) | | | 1,317 | | | | 1,032 | |
Series 2006-A7 Class 3A2
5.660% due 01/25/37 (Ê) | | | 5,549 | | | | 4,517 | |
Series 2006-S4 Class A5
6.000% due 01/25/37 | | | 2,459 | | | | 1,993 | |
Series 2007-A1 Class 1A1
2.807% due 07/25/35 (Ê) | | | 368 | | | | 349 | |
Series 2007-A1 Class 5A2
2.850% due 07/25/35 (Ê) | | | 645 | | | | 596 | |
| | |
| Russell Strategic Bond Fund | | 245 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2007-A1 Class B1
3.151% due 07/25/35 (Ê) | | | 149 | | | | 6 | |
Series 2007-A4 Class 3A3
5.497% due 06/25/37 (Ê) | | | 2,535 | | | | 2,300 | |
Series 2007-S3 Class 1A74
6.000% due 08/25/37 | | | 2,285 | | | | 1,878 | |
Series 2007-S3 Class 1A8
6.000% due 08/25/37 | | | 9,305 | | | | 7,315 | |
Series 2007-S3 Class 1A96
6.000% due 08/25/37 | | | 173 | | | | 144 | |
Series 2007-S3 Class 1A97
6.000% due 08/25/37 | | | 359 | | | | 295 | |
LB-UBS Commercial Mortgage Trust
Series 2002-C2 Class F
5.794% due 07/15/35 | | | 939 | | | | 939 | |
Series 2002-C2 Class G
5.873% due 07/15/35 | | | 1,433 | | | | 1,433 | |
Series 2002-C4 Class A5
4.853% due 09/15/31 | | | 667 | | | | 672 | |
Series 2003-C1 Class B
4.479% due 12/15/36 | | | 700 | | | | 714 | |
Series 2003-C3 Class A
4 4.166% due 05/15/32 | | | 585 | | | | 600 | |
Series 2003-C3 Class D
4.274% due 02/15/37 | | | 395 | | | | 401 | |
Series 2003-C5 Class C
4.762% due 04/15/37 | | | 1,885 | | | | 1,946 | |
Series 2004-C7 Class A5
4.628% due 10/15/29 | | | 357 | | | | 366 | |
Series 2005-C1 Class A3
4.545% due 02/15/30 | | | 285 | | | | 285 | |
Series 2005-C2 Class AAB
5.007% due 04/15/30 | | | 310 | | | | 321 | |
Series 2007-C1 Class A4
5.424% due 02/15/40 | | | 6,508 | | | | 7,358 | |
Series 2007-C7 Class A3
5.866% due 09/15/45 | | | 7,820 | | | | 8,926 | |
Lehman Mortgage Trust
Series 2006-8 Class 2A1
0.659% due 12/25/36 (Ê) | | | 6,257 | | | | 2,722 | |
Series 2007-8 Class 3A1
7.250% due 09/25/37 | | | 12,630 | | | | 6,520 | |
Luminent Mortgage Trust
Series 2006-6 Class A1
0.439% due 10/25/46 (Ê) | | | 980 | | | | 631 | |
Master Reperforming Loan Trust
Series 2005-2 Class 1A4
8.000% due 05/25/35 (Þ) | | | 1,114 | | | | 1,098 | |
Mastr Adjustable Rate Mortgages Trust
Series 2004-10 Class 2A2
3.319% due 10/25/34 (Ê) | | | 7 | | | | 4 | |
Series 2005-1 Class B1
3.333% due 03/25/35 (Ê) | | | 1,099 | | | | 78 | |
Series 2005-6 Class 7A1
5.323% due 06/25/35 (Ê) | | | 361 | | | | 362 | |
Series 2006-1 Class I2A3
0.898% due 01/25/47 (Ê) | | | 2,965 | | | | 1,399 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2006-2 Class 3A1
2.707% due 01/25/36 (Ê) | | | 307 | | | | 244 | |
Series 2006-2 Class 4A1
4.651% due 02/25/36 (Ê) | | | 2,145 | | | | 2,062 | |
Series 2006-OA2 Class 4A1B
1.358% due 12/25/46 (Ê) | | | 10,766 | | | | 4,399 | |
Series 2007-HF2 Class A1
0.549% due 09/25/37 (Ê) | | | 6,910 | | | | 4,597 | |
MASTR Alternative Loans Trust
Series 2003-4 Class B1
5.801% due 06/25/33 | | | 1,142 | | | | 1,003 | |
Series 2003-6 Class 3A1
8.000% due 09/25/33 | | | 1 | | | | 1 | |
MASTR Asset Securitization Trust
Series 2006-2 Class 1A10
6.000% due 06/25/36 (Ê) | | | 4,842 | | | | 4,201 | |
Mastr Reperforming Loan Trust
Series 2005-1 Class 1A3
7.000% due 08/25/34 (Þ) | | | 552 | | | | 564 | |
Mellon Residential Funding Corp.
Series 2000-TBC2 Class A1
0.720% due 06/15/30 (Ê) | | | 474 | | | | 452 | |
Merrill Lynch Alternative Note Asset
Series 2007-OAR3 Class A1
0.429% due 07/25/47 (Ê) | | | 276 | | | | 151 | |
Merrill Lynch Floating Trust
Series 2008-LAQA Class A1
0.779% due 07/09/21 (Ê)(Þ) | | | 4,799 | | | | 4,667 | |
Merrill Lynch Mortgage Investors, Inc.
Series 2005-A10 Class A
0.449% due 02/25/36 (Ê) | | | 553 | | | | 399 | |
Series 2006-A1 Class 1A1
2.842% due 03/25/36 (Ê) | | | 7,164 | | | | 3,978 | |
Merrill Lynch Mortgage Trust
Series 2002-MW1 Class J
5.695% due 07/12/34 (Þ) | | | 740 | | | | 673 | |
Series 2005-CIP1 Class A
2 4.960% due 07/12/38 | | | 32 | | | | 32 | |
Series 2005-CIP1 Class AM
5.107% due 07/12/38 | | | 4,345 | | | | 4,560 | |
Series 2008-C1 Class A
4 5.690% due 02/12/51 | | | 7,790 | | | | 8,901 | |
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-6 Class A4
5.485% due 03/12/51 | | | 900 | | | | 972 | |
Series 2007-8 Class A3
6.165% due 08/12/49 | | | 1,100 | | | | 1,222 | |
MLCC Mortgage Investors, Inc.
Series 2005-2 Class 3A
1.241% due 10/25/35 (Ê) | | | 202 | | | | 174 | |
Series 2005-3 Class 5A
0.489% due 11/25/35 (Ê) | | | 1,043 | | | | 830 | |
Morgan Stanley Capital I
Series 1998-HF2 Class G
6.010% due 11/15/30 (Þ) | | | 1,827 | | | | 1,826 | |
| | | | |
| | 246 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2005-T19 Class A3
4.827% due 06/12/47 | | | 254 | | | | 254 | |
Series 2005-T19 Class A4A
4.890% due 06/12/47 | | | 7,915 | | | | 8,659 | |
Series 2006-HQ9 Class A4
5.731% due 07/12/44 | | | 4,089 | | | | 4,652 | |
Series 2006-T23 Class A4
5.987% due 08/12/41 | | | 5,093 | | | | 5,869 | |
Series 2007-HQ11 Class AM
5.478% due 02/12/44 | | | 600 | | | | 613 | |
Series 2007-HQ13 Class AM
5.931% due 12/15/44 | | | 1,200 | | | | 1,070 | |
Series 2007-IQ13 Class A4
5.364% due 03/15/44 | | | 4,921 | | | | 5,468 | |
Series 2007-IQ16 Class A4
5.809% due 12/12/49 | | | 3,100 | | | | 3,571 | |
Series 2008-T29 Class A4
6.455% due 01/11/43 | | | 3,690 | | | | 4,375 | |
Series 2011-C3 Class A2
3.224% due 07/15/49 | | | 1,885 | | | | 1,999 | |
Series 2011-C3 Class A4
4.118% due 07/15/49 | | | 1,105 | | | | 1,206 | |
Series 2012-C4 Class A4
3.244% due 03/15/45 | | | 7,445 | | | | 7,575 | |
Morgan Stanley Dean Witter Capital I
Series 2001-TOP1 Class E
7.607% due 02/15/33 (Þ) | | | 380 | | | | 374 | |
Series 2001-TOP3 Class C
6.790% due 07/15/33 | | | 840 | | | | 870 | |
Series 2002-TOP7 Class B
6.080% due 01/15/39 | | | 393 | | | | 394 | |
Morgan Stanley Reremic Trust
Series 2009-GG10 Class A4A
5.980% due 08/12/45 (Þ) | | | 400 | | | | 451 | |
NCUA Guaranteed Notes
Series 2010-C1 Class APT
2.650% due 10/29/20 | | | 6,211 | | | | 6,474 | |
Series 2010-R1 Class 1A
0.691% due 10/07/20 (Ê) | | | 12,900 | | | | 12,924 | |
Series 2010-R1 Class 2A
1.840% due 10/07/20 | | | 13,048 | | | | 13,213 | |
Series 2010-R2 Class 1A
0.611% due 11/06/17 (Ê) | | | 11,733 | | | | 11,735 | |
Series 2010-R2 Class 2A
0.711% due 11/05/20 (Ê) | | | 7,622 | | | | 7,621 | |
Series 2010-R3 Class 1A
0.801% due 12/08/20 (Ê) | | | 6,910 | | | | 6,936 | |
Series 2010-R3 Class 2A
0.801% due 12/08/20 (Ê) | | | 5,749 | | | | 5,770 | |
Series 2010-R3 Class 3A
2.400% due 12/08/20 | | | 4,097 | | | | 4,195 | |
Series 2011-R2 Class 1A
0.641% due 02/06/20 (Ê) | | | 9,276 | | | | 9,278 | |
Nomura Asset Acceptance Corp.
Series 2005-WF1 Class 2A2
4.786% due 03/25/35 | | | 551 | | | | 530 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
OBP Depositor LLC Trust
Series 2010-OBP Class A
4.646% due 07/15/45 (Þ) | | | 5,160 | | | | 5,873 | |
Prime Mortgage Trust
Series 2004-CL1 Class 1A2
0.639% due 02/25/34 (Ê) | | | 63 | | | | 57 | |
Series 2004-CL1 Class 2A2
0.639% due 02/25/19 (Ê) | | | 6 | | | | 6 | |
Prudential Commercial Mortgage Trust
Series 2003-PWR1 Class A2
4.493% due 02/11/36 | | | 117 | | | | 119 | |
Series 2003-PWR1 Class C
4.706% due 02/11/36 | | | 860 | | | | 847 | |
Series 2003-PWR1 Class E
5.259% due 02/11/36 (Þ) | | | 1,405 | | | | 1,362 | |
Residential Accredit Loans, Inc.
Series 2004-QS5 Class A1
4.600% due 04/25/34 | | | 599 | | | | 586 | |
Series 2005-QS13 Class 2A3
5.750% due 09/25/35 | | | 5,254 | | | | 3,627 | |
Series 2005-QS14 Class 2A1
6.000% due 09/25/35 | | | 3,422 | | | | 2,307 | |
Series 2005-QS17 Class A10
6.000% due 12/25/35 | | | 956 | | | | 743 | |
Series 2006-QO1 Class 1A1
0.499% due 02/25/46 (Ê) | | | 248 | | | | 86 | |
Series 2006-QO1 Class 2A1
0.509% due 02/25/46 (Ê) | | | 390 | | | | 149 | |
Series 2007-QO4 Class A1
0.439% due 05/25/47 (Ê) | | | 13,470 | | | | 8,210 | |
Residential Asset Mortgage Products, Inc.
Series 2004-SL1 Class A3
7.000% due 11/25/31 | | | 7 | | | | 7 | |
Residential Asset Securitization Trust
Series 2005-A14 Class A5
5.500% due 12/25/35 | | | 3,385 | | | | 2,705 | |
Series 2006-A11 Class 1A4
6.250% due 10/25/36 | | | 355 | | | | 233 | |
Series 2006-A9CB Class A6
6.000% due 09/25/36 | | | 2,632 | | | | 1,442 | |
Residential Funding Mortgage Securities I
Series 2005-S5 Class A6
5.250% due 07/25/35 | | | 3,791 | | | | 3,653 | |
Series 2005-SA4 Class 1A21
3.110% due 09/25/35 (Ê) | | | 4,108 | | | | 2,863 | |
Series 2005-SA4 Class 2A1
3.007% due 09/25/35 (Ê) | | | 2,374 | | | | 1,835 | |
Series 2006-S10 Class 1A7
6.000% due 10/25/36 | | | 2,635 | | | | 2,195 | |
Series 2006-SA4 Class 2A1
3.735% due 11/25/36 (Ê) | | | 590 | | | | 420 | |
RREF 2012 LT1 LLC
Series 2012-LT1A Class A
4.750% due 02/15/25 (Å) | | | 2,040 | | | | 2,050 | |
Structured Adjustable Rate Mortgage Loan Trust Series 2004-18 Class 5A
5.500% due 12/25/34 | | | 246 | | | | 235 | |
| | |
| Russell Strategic Bond Fund | | 247 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2004-20 Class 3A1
2.669% due 01/25/35 (Ê) | | | 1,738 | | | | 1,411 | |
Series 2005-17 Class 3A1
2.705% due 08/25/35 (Ê) | | | 38 | | | | 30 | |
Series 2005-22 Class 4A2
5.156% due 12/25/35 (Ê) | | | 47 | | | | 4 | |
Series 2005-19XS Class 1A1
0.559% due 10/25/35 (Ê) | | | 431 | | | | 262 | |
Series 2006-5 Class 5A4
5.207% due 06/25/36 (Ê) | | | 93 | | | | 6 | |
Structured Asset Mortgage Investments, Inc.
Series 2005-AR5 Class A3
0.490% due 07/19/35 (Ê) | | | 294 | | | | 260 | |
Series 2005-AR8 Class A1A
0.519% due 02/25/36 (Ê) | | | 907 | | | | 522 | |
Series 2005-AR8 Class A2
1.649% due 02/25/36 (Ê) | | | 2,386 | | | | 1,490 | |
Series 2006-AR5 Class 1A2
0.499% due 05/25/46 (Ê) | | | 488 | | | | 92 | |
Series 2006-AR6 Class 1A3
0.429% due 07/25/46 (Ê) | | | 1,171 | | | | 563 | |
Series 2007-AR6 Class A1
1.659% due 08/25/47 (Ê) | | | 11,496 | | | | 6,041 | |
Structured Asset Securities Corp.
Series 2003-34A Class 5A4
2.707% due 11/25/33 (Ê) | | | 7,080 | | | | 6,937 | |
Series 2005-6 Class B2
5.247% due 05/25/35 | | | 223 | | | | 5 | |
SunTrust Adjustable Rate Mortgage Loan Trust
Series 2007-2 Class 3A3
5.501% due 04/25/37 (Ê) | | | 9,030 | | | | 6,853 | |
SunTrust Alternative Loan Trust
Series 2006-1F Class 3A
0.589% due 04/25/36 (Ê) | | | 895 | | | | 276 | |
Thornburg Mortgage Securities Trust
Series 2004-3 Class A
0.979% due 09/25/44 (Ê) | | | 7,098 | | | | 6,386 | |
Vornado DP LLC
Series 2010-VNO Class A2FX
4.004% due 09/13/28 (Þ) | | | 2,350 | | | | 2,554 | |
Wachovia Bank Commercial Mortgage Trust
Series 2003-C4 Class D
5.040% due 04/15/35 | | | 844 | | | | 850 | |
Series 2006-C29 Class E
5.516% due 11/15/48 | | | 2,682 | | | | 340 | |
Series 2006-WL7A Class A1
0.330% due 09/15/21 (Ê)(Þ) | | | 6,723 | | | | 6,504 | |
Series 2007-C30 Class A5
5.342% due 12/15/43 | | | 16,650 | | | | 18,044 | |
Series 2007-C31 Class A4
5.509% due 04/15/47 | | | 3,830 | | | | 4,176 | |
Series 2007-C32 Class A3
5.927% due 06/15/49 | | | 1,890 | | | | 2,049 | |
Series 2007-WHL8 Class A1
0.320% due 06/15/20 (Ê)(Þ) | | | 2,545 | | | | 2,359 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
WaMu Mortgage Pass Through Certificates
Series 2007-HY5 Class 3A1
5.350% due 05/25/37 (Ê) | | | 4,315 | | | | 3,832 | |
Washington Mutual Alternative Mortgage Pass-Through Certificates
Series 2006-1 Class 4CB
6.500% due 02/25/36 | | | 11,594 | | | | 5,871 | |
Series 2006-5 Class 3A2
6.000% due 07/25/36 | | | 423 | | | | 203 | |
Series 2006-AR2 Class A1A
1.109% due 04/25/46 (Ê) | | | 1,268 | | | | 674 | |
Series 2006-AR6 Class 1A
0.429% due 07/25/46 (Ê) | | | 580 | | | | 342 | |
Series 2006-AR7 Class A1A
1.078% due 09/25/46 (Ê) | | | 15,362 | | | | 6,482 | |
Series 2006-AR8 Class 2A
1.008% due 10/25/46 (Ê) | | | 2,097 | | | | 881 | |
Series 2006-AR9 Class 2A
1.009% due 11/25/46 (Ê) | | | 14,698 | | | | 5,952 | |
Series 2007-HY2 Class 2A3
4.602% due 04/25/37 (Ê) | | | 6,166 | | | | 3,634 | |
Series 2007-OA5 Class A1A
0.999% due 05/25/47 (Ê) | | | 6,236 | | | | 3,463 | |
Washington Mutual Mortgage Pass Through Certificates
Series 2002-AR9 Class 1A
1.558% due 08/25/42 (Ê) | | | 136 | | | | 110 | |
Series 2004-AR1 Class A
2.577% due 03/25/34 (Ê) | | | 125 | | | | 123 | |
Series 2005-AR6 Class B3
0.899% due 04/25/45 (Ê)(Þ) | | | 1,615 | | | | 52 | |
Series 2005-AR11 Class A1A
0.559% due 08/25/45 (Ê) | | | 835 | | | | 684 | |
Series 2005-AR13 Class A1A1
0.529% due 10/25/45 (Ê) | | | 218 | | | | 174 | |
Series 2005-AR17 Class A1A2
0.529% due 12/25/45 (Ê) | | | 423 | | | | 314 | |
Series 2006-AR7 Class 2A
1.139% due 07/25/46 (Ê) | | | 2,464 | | | | 1,602 | |
Series 2006-AR8 Class 1A5
2.511% due 08/25/46 (Ê) | | | 25 | | | | 1 | |
Series 2006-AR8 Class 2A3
5.494% due 08/25/36 (Ê) | | | 118 | | | | 13 | |
Series 2007-HY3 Class 4A1
2.692% due 03/25/37 (Ê) | | | 5,441 | | | | 4,288 | |
Series 2007-HY3 Class 4B1
2.692% due 03/25/37 (Ê) | | | 159 | | | | 1 | |
Wells Fargo Alternative Loan Trust
Series 2007-PA2 Class 1A1
6.000% due 06/25/37 | | | 17 | | | | 14 | |
Wells Fargo Mortgage Backed Securities Trust
Series 2003-N Class 1A1
4.554% due 12/25/33 (Ê) | | | 795 | | | | 798 | |
Series 2004-AA Class A1
2.596% due 12/25/34 (Ê) | | | 787 | | | | 775 | |
| | | | |
| | 248 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2004-CC Class A1
2.604% due 01/25/35 (Ê) | | | 1,297 | | | | 1,222 | |
Series 2005-18 Class 2A10
21.858% due 01/25/36 (Ê) | | | 1,224 | | | | 1,598 | |
Series 2005-AR7 Class 2A1
5.098% due 05/25/35 (Ê) | | | 5,039 | | | | 5,012 | |
Series 2005-AR8 Class 2A1
2.689% due 06/25/35 (Ê) | | | 552 | | | | 530 | |
Series 2005-AR11 Class 1A1
2.629% due 06/25/35 (Ê) | | | 605 | | | | 600 | |
Series 2006-2 Class 2A3
5.500% due 03/25/36 | | | 1,603 | | | | 1,511 | |
Series 2006-3 Class A11
5.500% due 03/25/36 | | | 5,785 | | | | 5,653 | |
Series 2006-6 Class 1A8
5.750% due 05/25/36 | | | 2,380 | | | | 2,298 | |
Series 2006-8 Class A15
6.000% due 07/25/36 | | | 5,382 | | | | 4,967 | |
Series 2006-11 Class A8
6.000% due 09/25/36 | | | 1,172 | | | | 1,095 | |
Series 2006-11 Class A9
6.500% due 09/25/36 | | | 2,396 | | | | 2,231 | |
Series 2006-13 Class A5
6.000% due 10/25/36 | | | 1,458 | | | | 1,427 | |
Series 2006-AR1 Class 2A5
5.367% due 03/25/36 (Ê) | | | 1,787 | | | | 1,658 | |
Series 2006-AR2 Class 2A1
2.629% due 03/25/36 | | | 1,674 | | | | 1,468 | |
Series 2006-AR2 Class 2A3
2.629% due 03/25/36 (Ê) | | | 1,373 | | | | 1,195 | |
Series 2006-AR4 Class 1A1
5.779% due 04/25/36 (Ê) | | | 6,363 | | | | 5,364 | |
Series 2006-AR10 Class 4A1
2.619% due 07/25/36 (Ê) | | | 3,291 | | | | 2,441 | |
Series 2006-AR12 Class 2A1
5.834% due 09/25/36 (Ê) | | | 3,650 | | | | 3,270 | |
Series 2006-AR17 Class A1
2.606% due 10/25/36 (Ê) | | | 9,586 | | | | 7,282 | |
Series 2006-AR18 Class 2A2
5.374% due 11/25/36 (Ê) | | | 202 | | | | 16 | |
Series 2007-1 Class A6
5.500% due 02/25/37 | | | 772 | | | | 653 | |
Series 2007-2 Class 1A13
6.000% due 03/25/37 | | | 5,912 | | | | 5,389 | |
Series 2007-4 Class A15
6.000% due 04/25/37 | | | 996 | | | | 916 | |
Series 2007-4 Class A21
5.500% due 04/25/37 | | | 648 | | | | 566 | |
Series 2007-6 Class A6
6.000% due 05/25/37 | | | 511 | | | | 437 | |
Series 2007-7 Class A38
6.000% due 06/25/37 | | | 994 | | | | 919 | |
Series 2007-7 Class A6
6.000% due 06/25/37 | | | 970 | | | | 940 | |
Series 2007-8 Class 1A16
6.000% due 07/25/37 | | | 2,427 | | | | 2,245 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2007-8 Class 2A2
6.000% due 07/25/37 | | | 4,936 | | | | 4,825 | |
Series 2007-10 Class 1A18
6.000% due 07/25/37 | | | 4,284 | | | | 3,968 | |
Series 2007-10 Class 1A5
6.000% due 07/25/37 | | | 5,612 | | | | 5,129 | |
Series 2007-11 Class A14
6.000% due 08/25/37 | | | 696 | | | | 664 | |
Series 2007-11 Class A36
6.000% due 08/25/37 | | | 2,943 | | | | 2,803 | |
Series 2007-11 Class A81
6.000% due 08/25/37 | | | 4,903 | | | | 4,735 | |
Series 2007-11 Class A85
6.000% due 08/25/37 | | | 224 | | | | 216 | |
Series 2007-11 Class A96
6.000% due 08/25/37 | | | 2,629 | | | | 2,538 | |
Series 2007-13 Class A7
6.000% due 09/25/37 | | | 1,090 | | | | 1,000 | |
Series 2007-14 Class 1A1
6.000% due 10/25/37 | | | 884 | | | | 845 | |
Series 2007-AR5 Class A1
6.052% due 10/25/37 (Ê) | | | 2,276 | | | | 2,007 | |
WF-RBS Commercial Mortgage Trust
Series 2011-C5 Class A4
3.667% due 11/15/44 | | | 14,695 | | | | 15,441 | |
| | | | | | | | |
| | | | | | | 3,203,974 | |
| | | | | | | | |
| | |
| Municipal Bonds - 2.0% | | | | | | | | |
American Municipal Power, Inc. Revenue Bonds
6.270% due 02/15/50 | | | 1,750 | | | | 1,960 | |
Brazos Higher Education Authority Revenue Bonds
0.584% due 12/26/24 (Ê) | | | 3,795 | | | | 3,456 | |
Chicago Transit Authority Revenue Bonds
6.300% due 12/01/21 | | | 500 | | | | 563 | |
6.899% due 12/01/40 | | | 5,200 | | | | 6,354 | |
City of Chicago Illinois General Obligation Unlimited
5.000% due 12/01/24 (µ) | | | 17,715 | | | | 19,235 | |
City of Colorado Springs Colorado Utilities System Revenue Bonds
5.000% due 11/15/33 | | | 200 | | | | 209 | |
County of Clark Nevada Airport System Revenue Bonds
6.820% due 07/01/45 | | | 1,200 | | | | 1,624 | |
County of Cook Illinois General Obligation Unlimited
5.000% due 11/15/26 (µ) | | | 15,000 | | | | 16,220 | |
East Baton Rouge Sewerage Commission Revenue Bonds
6.087% due 02/01/45 | | | 1,800 | | | | 1,967 | |
Iowa Tobacco Settlement Authority Revenue Bonds
6.500% due 06/01/23 | | | 355 | | | | 337 | |
| | |
| Russell Strategic Bond Fund | | 249 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Los Angeles Unified School District General Obligation Unlimited
6.758% due 07/01/34 | | | 800 | | | | 1,031 | |
Metropolitan Government of Nashville & Davidson County Convention Center Authority Revenue Bonds
6.731% due 07/01/43 | | | 100 | | | | 120 | |
Municipal Electric Authority of Georgia Revenue Bonds
6.637% due 04/01/57 | | | 6,010 | | | | 6,827 | |
7.055% due 04/01/57 | | | 5,615 | | | | 5,893 | |
New Jersey Economic Development Authority Revenue Bonds
1.474% due 06/15/13 (Ê) | | | 3,900 | | | | 3,903 | |
New Jersey State Turnpike Authority Revenue Bonds
7.102% due 01/01/41 | | | 3,925 | | | | 5,493 | |
New York City Municipal Water Finance Authority Revenue Bonds
5.375% due 06/15/43 | | | 5,075 | | | | 5,773 | |
New York Liberty Development Corp. Revenue Bonds
5.000% due 12/15/41 | | | 200 | | | | 219 | |
Northstar Education Finance, Inc. Revenue Bonds
Zero coupon due 04/01/42 (Ê) | | | 4,600 | | | | 3,634 | |
0.323% due 04/01/42 (Ê) | | | 1,350 | | | | 1,087 | |
0.338% due 04/01/42 (Ê) | | | 1,200 | | | | 966 | |
1.137% due 01/29/46 (Ê) | | | 150 | | | | 119 | |
1.138% due 01/29/46 (Ê) | | | 4,000 | | | | 3,220 | |
Public Power Generation Agency Revenue Bonds
7.242% due 01/01/41 | | | 100 | | | | 116 | |
San Diego County Regional Airport Authority Revenue Bonds
6.628% due 07/01/40 | | | 15,190 | | | | 16,527 | |
San Diego Redevelopment Agency Tax Allocation
7.625% due 09/01/30 | | | 500 | | | | 529 | |
San Diego Tobacco Settlement Revenue Funding Corp. Revenue Bonds
7.125% due 06/01/32 | | | 1,045 | | | | 817 | |
South Carolina Student Loan Corp. Revenue Bonds
0.607% due 12/01/20 (Ê) | | | 4,500 | | | | 4,309 | |
State of California General Obligation Unlimited
5.700% due 11/01/21 | | | 920 | | | | 1,054 | |
6.650% due 03/01/22 | | | 1,675 | | | | 2,035 | |
7.500% due 04/01/34 | | | 800 | | | | 1,024 | |
7.950% due 03/01/36 | | | 4,435 | | | | 5,219 | |
5.650% due 04/01/39 (Ê) | | | 700 | | | | 732 | |
7.550% due 04/01/39 | | | 4,688 | | | | 6,137 | |
7.625% due 03/01/40 | | | 3,185 | | | | 4,191 | |
7.600% due 11/01/40 | | | 1,100 | | | | 1,457 | |
State of Illinois General Obligation Unlimited
5.665% due 03/01/18 | | | 7,000 | | | | 7,754 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
5.100% due 06/01/33 | | | 1,400 | | | | 1,299 | |
7.350% due 07/01/35 | | | 6,400 | | | | 7,310 | |
State of Louisiana Gasoline & Fuels Tax Revenue Bonds
3.000% due 05/01/43 (Ê) | | | 4,200 | | | | 4,243 | |
Tobacco Settlement Finance Authority Revenue Bonds
7.467% due 06/01/47 | | | 2,350 | | | | 1,750 | |
Tobacco Settlement Financing Corp. Revenue Bonds
5.500% due 06/01/26 | | | 1,500 | | | | 1,639 | |
| | | | | | | | |
| | | | | | | 158,352 | |
| | | | | | | | |
| | |
| Non-US Bonds - 1.4% | | | | | | | | |
Abbey National Treasury Services
PLC/London
2.674% due 02/16/15 (Ê) | | GBP | 1,800 | | | | 2,922 | |
Brazil Notas do Tesouro Nacional
Serie B
Series NTNB
6.000% due 05/15/15 | | BRL | 6,090 | | | | 7,465 | |
Brazil Notas do Tesouro Nacional
Serie F
Series NTNF
10.000% due 01/01/14 | | BRL | 6,874 | | | | 3,786 | |
Brazilian Government International Bond
8.500% due 01/05/24 (Ñ) | | BRL | 5,330 | | | | 2,845 | |
Canada Housing Trust No. 1
3.750% due 03/15/20 (Þ) | | CAD | 2,300 | | | | 2,556 | |
3.350% due 12/15/20 (Þ) | | CAD | 300 | | | | 324 | |
3.800% due 06/15/21 (Þ) | | CAD | 1,600 | | | | 1,785 | |
Eksportfinans ASA
Series 2
0.720% due 07/28/16 | | JPY | 300,000 | | | | 3,043 | |
European Loan Conduit
Series 2007-25X Class A
1.207% due 05/15/19 (Ê) | | EUR | 158 | | | | 177 | |
Federative Republic of Brazil
12.500% due 01/05/22 | | BRL | 2,500 | | | | 1,718 | |
10.250% due 01/10/28 | | BRL | 2,600 | | | | 1,610 | |
Granite Master Issuer PLC
Series 2005-2 Class A5
0.688% due 12/20/54 (Ê) | | EUR | 749 | | | | 956 | |
Granite Mortgages PLC
Series 2003-3 Class 2A
1.121% due 01/20/44 (Ê) | | EUR | 1,102 | | | | 1,416 | |
Series 2004-2 Class 3A
1.356% due 06/20/44 (Ê) | | GBP | 183 | | | | 285 | |
Series 2004-3 Class 2A2
1.133% due 09/20/44 (Ê) | | EUR | 460 | | | | 589 | |
Series 2004-3 Class 3A1
1.396% due 09/20/44 (Ê) | | GBP | 120 | | | | 188 | |
Hellenic Republic Government Bond
Series PSI
3.000% due 02/24/15 | | EUR | 4,130 | | | | 968 | |
| | | | |
| | 250 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Holmes Master Issuer PLC
Series 2011-1A Class A3
2.107% due 10/15/54 (Ê)(Þ) | | EUR | 1,200 | | | | 1,595 | |
Housing Financing Fund
Series 2
3.750% due 04/15/34 | | ISK | 373,202 | | | | 3,487 | |
Series 3
3.750% due 06/15/44 | | ISK | 760,642 | | | | 7,044 | |
Mexican Bonos
Series M 20
12.500% due 11/30/17 | | MXN | 43,193 | | | | 4,350 | |
Series M 30
8.500% due 11/18/38 | | MXN | 33,780 | | | | 2,919 | |
Series M
6.250% due 06/16/16 | | MXN | 59,040 | | | | 4,715 | |
6.500% due 06/10/21 | | MXN | 33,540 | | | | 2,639 | |
7.750% due 11/13/42 | | MXN | 89,558 | | | | 7,131 | |
Peruvian Government International Bond
Series REGS
8.600% due 08/12/17 | | PEN | 7,745 | | | | 3,493 | |
6.950% due 08/12/31 | | PEN | 4,645 | | | | 1,955 | |
Province of British Columbia Canada
4.300% due 06/18/42 | | CAD | 200 | | | | 231 | |
Province of Ontario Canada
4.300% due 03/08/17 | | CAD | 200 | | | | 223 | |
4.200% due 06/02/20 | | CAD | 400 | | | | 445 | |
4.000% due 06/02/21 | | CAD | 13,765 | | | | 15,060 | |
3.150% due 06/02/22 | | CAD | 500 | | | | 509 | |
4.600% due 06/02/39 | | CAD | 900 | | | | 1,060 | |
Province of Quebec Canada
4.500% due 12/01/17 | | CAD | 600 | | | | 676 | |
4.500% due 12/01/18 | | CAD | 200 | | | | 226 | |
4.500% due 12/01/20 | | CAD | 700 | | | | 793 | |
4.250% due 12/01/21 | | CAD | 2,200 | | | | 2,443 | |
3.500% due 12/01/22 | | CAD | 3,200 | | | | 3,330 | |
South Africa Government Bond
Series R186
10.500% due 12/21/26 | | ZAR | 74,220 | | | | 11,410 | |
Series R207
7.250% due 01/15/20 | | ZAR | 6,280 | | | | 793 | |
Series R208
6.750% due 03/31/21 | | ZAR | 43,630 | | | | 5,287 | |
| | | | | | | | |
| | | | | | | 114,447 | |
| | | | | | | | |
| |
| United States Government Agencies - 1.5% | | | | | |
Fannie Mae
4.125% due 04/15/14 | | | 1,800 | | | | 1,932 | |
5.375% due 07/15/16 | | | 2,400 | | | | 2,851 | |
5.000% due 02/13/17 | | | 1,400 | | | | 1,659 | |
5.375% due 06/12/17 | | | 2,900 | | | | 3,518 | |
Federal Home Loan Mortgage Corp.
0.700% due 11/04/13 | | | 23,040 | | | | 23,041 | |
1.375% due 02/25/14 | | | 4,355 | | | | 4,438 | |
2.500% due 05/27/16 | | | 100 | | | | 107 | |
2.000% due 08/25/16 | | | 11,375 | | | | 11,920 | |
1.000% due 03/08/17 | | | 18,500 | | | | 18,486 | |
3.750% due 03/27/19 | | | 4,200 | | | | 4,802 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
1.750% due 05/30/19 | | | 1,000 | | | | 1,007 | |
2.375% due 01/13/22 | | | 17,500 | | | | 17,605 | |
Federal National Mortgage Association
0.375% due 03/16/15 | | | 5,300 | | | | 5,283 | |
1.375% due 11/15/16 | | | 100 | | | | 102 | |
1.250% due 01/30/17 | | | 4,500 | | | | 4,555 | |
Zero coupon due 10/09/19 | | | 11,005 | | | | 8,860 | |
Freddie Mac
5.000% due 02/16/17 | | | 1,900 | | | | 2,256 | |
Series 1
0.500% due 10/15/13 | | | 3,700 | | | | 3,703 | |
Freddie Mac MAC
5.500% due 07/18/16 | | | 1,500 | | | | 1,788 | |
Tennessee Valley Authority
4.625% due 09/15/60 | | | 1,300 | | | | 1,467 | |
| | | | | | | | |
| | | | | | | 119,380 | |
| | | | | | | | |
| |
| United States Government Treasuries - 13.0% | | | | | |
United States Treasury Inflation Indexed Bonds
1.625% due 01/15/15 (Æ) | | | 7,272 | | | | 7,901 | |
1.875% due 07/15/15 | | | 4,096 | | | | 4,561 | |
0.125% due 04/15/16 (Æ) | | | 206 | | | | 219 | |
1.250% due 07/15/20 (Æ) | | | 522 | | | | 607 | |
0.125% due 01/15/22 | | | 1,006 | | | | 1,052 | |
2.375% due 01/15/25 | | | 3,623 | | | | 4,727 | |
2.375% due 01/15/27 (Æ) | | | 44,586 | | | | 58,957 | |
1.750% due 01/15/28 (Æ) | | | 435 | | | | 536 | |
3.875% due 04/15/29 | | | 1,800 | | | | 2,859 | |
2.125% due 02/15/41 (Æ) | | | 6,704 | | | | 9,215 | |
United States Treasury Notes
0.250% due 10/31/13 | | | 15,500 | | | | 15,502 | |
0.250% due 01/31/14 | | | 46,300 | | | | 46,302 | |
0.250% due 02/28/14 | | | 2,515 | | | | 2,515 | |
0.375% due 11/15/14 | | | 100,900 | | | | 100,995 | |
0.375% due 04/15/15 | | | 18,715 | | | | 18,714 | |
3.250% due 05/31/16 | | | 12,850 | | | | 14,205 | |
0.875% due 01/31/17 | | | 58,455 | | | | 58,766 | |
1.000% due 03/31/17 | | | 160,191 | | | | 161,793 | |
0.875% due 04/30/17 | | | 1,000 | | | | 1,003 | |
3.500% due 02/15/18 | | | 900 | | | | 1,025 | |
1.375% due 12/31/18 (Ñ) | | | 45,200 | | | | 45,634 | |
2.750% due 02/15/19 | | | 1,300 | | | | 1,428 | |
1.500% due 03/31/19 | | | 11,200 | | | | 11,352 | |
1.250% due 04/30/19 | | | 22,200 | | | | 22,096 | |
3.125% due 05/15/19 | | | 1,200 | | | | 1,348 | |
3.625% due 08/15/19 | | | 1,900 | | | | 2,199 | |
3.375% due 11/15/19 | | | 2,600 | | | | 2,963 | |
3.500% due 05/15/20 | | | 1,100 | | | | 1,264 | |
2.625% due 08/15/20 | | | 4,200 | | | | 4,533 | |
3.125% due 05/15/21 | | | 34,600 | | | | 38,571 | |
2.000% due 11/15/21 | | | 133,085 | | | | 134,541 | |
2.000% due 02/15/22 | | | 56,415 | | | | 56,838 | |
6.250% due 08/15/23 | | | 6,210 | | | | 8,820 | |
4.750% due 02/15/41 | | | 13,500 | | | | 17,940 | |
3.125% due 11/15/41 | | | 92,790 | | | | 93,080 | |
3.125% due 02/15/42 | | | 85,220 | | | | 85,460 | |
| | |
| Russell Strategic Bond Fund | | 251 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
United States Treasury Principal Principal Only STRIP
Zero coupon due 02/15/27 | | | 13,920 | | | | 9,279 | |
| | | | | | | | |
| | | | | | | 1,048,800 | |
| | | | | | | | |
| | |
Total Long-Term Investments
(cost $7,140,543) | | | | | | | 7,275,394 | |
| | | | | | | | |
| | |
| Common Stocks - 0.0% | | | | | | | | |
| Financial Services - 0.0% | | | | | | | | |
Escrow GM Corp. (Å) | | | 420,000 | | | | 105 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $—) | | | | | | | 105 | |
| | | | | | | | |
| | |
| Preferred Stocks - 0.0% | | | | | | | | |
| Financial Services - 0.0% | | | | | | | | |
DG Funding Trust (Å) | | | 479 | | | | 3,583 | |
| | | | | | | | |
| | |
Total Preferred Stocks
(cost $5,070) | | | | | | | 3,583 | |
| | | | | | | | |
| | |
| Short-Term Investments - 18.2% | | | | | | | | |
Adam Aircraft Industries, Inc. Term Loan
15.130% due 05/23/12 (Å)(Ø) | | | 760 | | | | 8 | |
Allstate Life Global Funding Trusts
5.375% due 04/30/13 | | | 2,200 | | | | 2,304 | |
Ally Auto Receivables Trust
Series 2012-1 Class A1
0.485% due 01/15/13 | | | 4,852 | | | | 4,856 | |
American Express Bank FSB
Series BKNT
5.500% due 04/16/13 | | | 700 | | | | 731 | |
AmeriCredit Automobile Receivables Trust
Series 2012-1 Class A1
0.447% due 02/08/13 | | | 8,130 | | | | 8,135 | |
Amsouth Bank
Series AI
4.850% due 04/01/13 | | | 1,360 | | | | 1,380 | |
Appalachian Power Co.
Series O
5.650% due 08/15/12 | | | 980 | | | | 993 | |
AT&T, Inc.
4.950% due 01/15/13 | | | 100 | | | | 103 | |
Banco do Brasil NY
2.152% due 03/26/13 (ž) | | | 4,900 | | | | 4,856 | |
Barclays Bank PLC
5.450% due 09/12/12 | | | 19,100 | | | | 19,408 | |
BRFkredit A/S
2.050% due 04/15/13 (Þ) | | | 16,500 | | | | 16,690 | |
CarMax Auto Owner Trust
Series 2012-1 Class A1
0.381% due 02/15/13 | | | 6,942 | | | | 6,944 | |
Carolina Power & Light Co.
6.500% due 07/15/12 | | | 105 | | | | 106 | |
Citigroup, Inc.
5.500% due 08/27/12 | | | 2,500 | | | | 2,535 | |
5.625% due 08/27/12 | | | 1,800 | | | | 1,824 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
5.300% due 10/17/12 | | | 1,000 | | | | 1,020 | |
5.500% due 04/11/13 | | | 7,900 | | | | 8,174 | |
Comcast Holdings Corp.
10.625% due 07/15/12 | | | 4,800 | | | | 4,893 | |
Countrywide Financial Corp.
Series MTN
5.800% due 06/07/12 (Ñ) | | | 500 | | | | 502 | |
DDR Corp.
5.375% due 10/15/12 | | | 3,320 | | | | 3,348 | |
Delta Air Lines 2002-1 Class G-2 Pass Through Trust
Series 02G2
6.417% due 07/02/12 | | | 2,785 | | | | 2,809 | |
DT Auto Owner Trust
Series 2010-1A Class B
2.360% due 04/15/13 (Þ) | | | 507 | | | | 507 | |
Enterprise Products Operating LLC
5.900% due 04/15/13 | | | 1,425 | | | | 1,489 | |
Fannie Mae
3.625% due 02/12/13 | | | 8,000 | | | | 8,210 | |
Federal Home Loan Banks
0.210% due 01/04/13 | | | 20,800 | | | | 20,796 | |
0.160% due 02/13/13 | | | 49,900 | | | | 49,867 | |
0.170% due 02/25/13 | | | 60,000 | | | | 59,961 | |
0.200% due 03/01/13 | | | 11,900 | | | | 11,895 | |
1.625% due 03/20/13 | | | 29,560 | | | | 29,920 | |
0.240% due 04/26/13 | | | 24,900 | | | | 24,895 | |
Series 0002
0.160% due 02/01/13 | | | 25,000 | | | | 24,985 | |
Federal National Mortgage Association
0.270% due 10/18/12 (Ê) | | | 15,490 | | | | 15,499 | |
FIH Erhvervsbank A/S
2.450% due 08/17/12 (Þ) | | | 8,600 | | | | 8,646 | |
Ford Credit Auto Lease Trust
Series 2012-A Class A1
0.358% due 03/15/13 (Þ) | | | 9,045 | | | | 9,058 | |
Ford Motor Credit Co. LLC
7.500% due 08/01/12 | | | 4,940 | | | | 5,018 | |
Freddie Mac
4.500% due 01/15/13 | | | 178 | | | | 183 | |
Freddie Mac Discount Notes
Zero coupon due 04/23/13 (ž) | | | 51,600 | | | | 51,498 | |
Frontier Communications Corp.
6.250% due 01/15/13 (Ñ) | | | 3,600 | | | | 3,681 | |
Gazprom OAO Via Gaz Capital SA
7.343% due 04/11/13 (Þ) | | | 600 | | | | 628 | |
Gazprom OAO Via RBS AG
Series REGS
9.625% due 03/01/13 | | | 1,200 | | | | 1,275 | |
Honda Auto Receivables Owner Trust
Series 2011-3 Class A1
0.398% due 10/22/12 | | | 3,157 | | | | 3,159 | |
Series 2012-1 Class A1
0.413% due 03/15/13 | | | 8,125 | | | | 8,136 | |
Huntington Auto Trust
Series 2012-1 Class A1
0.342% due 03/15/13 | | | 9,567 | | | | 9,579 | |
| | | | |
| | 252 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Hyundai Auto Receivables Trust
Series 2012-A Class A1
0.300% due 03/15/13 | | | 7,451 | | | | 7,459 | |
Iceland Rikisbref
4.250% due 08/24/12 | | | 198,000 | | | | 1,581 | |
ING Bank NV
1.524% due 03/15/13 (Ê)(Þ) | | | 8,100 | | | | 8,112 | |
Itau Unibanco SA
Zero coupon due 05/09/12 (ç)(ž) | | | 1,400 | | | | 1,399 | |
John Deere Owner Trust
Series 2012-A Class A1
0.379% due 03/15/13 | | | 5,923 | | | | 5,926 | |
KCP&L Greater Missouri Operations Co.
11.875% due 07/01/12 | | | 7,475 | | | | 7,606 | |
MBNA Corp.
6.125% due 03/01/13 | | | 2,000 | | | | 2,070 | |
Merrill Lynch & Co., Inc.
0.710% due 06/05/12 (Ê) | | | 8,425 | | | | 8,426 | |
6.050% due 08/15/12 (Ñ) | | | 6,600 | | | | 6,696 | |
5.450% due 02/05/13 | | | 7,500 | | | | 7,705 | |
Metropolitan Life Global Funding I
5.125% due 04/10/13 (Þ) | | | 3,000 | | | | 3,121 | |
Mexico Cetes
Series BI
Zero coupon due 05/03/12 | | | 375,000 | | | | 28,779 | |
Zero coupon due 05/10/12 | | | 24,000 | | | | 1,840 | |
Zero coupon due 06/14/12 | | | 65,000 | | | | 4,963 | |
Zero coupon due 06/21/12 | | | 14,000 | | | | 1,068 | |
Zero coupon due 06/28/12 | | | 62,900 | | | | 4,795 | |
Zero coupon due 07/05/12 | | | 1,200 | | | | 91 | |
Mirant Mid Atlantic Pass Through Trust A
Series A
8.625% due 06/30/12 | | | 750 | | | | 765 | |
MMCA Automobile Trust
Series 2012-A Class A1
0.601% due 02/04/13 (Þ) | | | 6,541 | | | | 6,549 | |
Morgan Stanley
1.321% due 03/01/13 (Ê) | | | 2,500 | | | | 3,268 | |
NGPL PipeCo LLC
6.514% due 12/15/12 (Ñ)(Þ) | | | 7,500 | | | | 7,473 | |
Nissan Auto Receivables Owner Trust
Series 2012-A Class A1
0.359% due 03/15/13 | | | 17,812 | | | | 17,832 | |
NuStar Logistics, LP
6.050% due 03/15/13 | | | 3,607 | | | | 3,734 | |
Ohio Power Co.
Series C
5.500% due 03/01/13 | | | 435 | | | | 452 | |
Pacific Gas & Electric Co.
0.430% due 05/17/12 (Å)(ç)(ž) | | | 6,700 | | | | 6,699 | |
Principal Life Income Funding Trusts
5.300% due 04/24/13 | | | 400 | | | | 418 | |
Rock-Tenn Co.
5.625% due 03/15/13 | | | 373 | | | | 381 | |
Royal Bank of Scotland PLC (The)
2.625% due 05/11/12 (Þ) | | | 4,400 | | | | 4,400 | |
Russell U.S. Cash Management Fund | | | 825,055,866 | (¥) | | | 825,056 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Santander Drive Auto Receivables Trust
Series 2011-4 Class A1
0.419% due 10/15/12 | | | 458 | | | | 458 | |
SMART Trust
Series 2011-1USA Class A2A
1.180% due 04/14/13 (Þ) | | | 1,319 | | | | 1,319 | |
Series 2012-1USA Class A1
0.477% due 03/14/13 (Þ) | | | 5,563 | | | | 5,566 | |
Societe Financement de l’Economie Francaise
0.667% due 07/16/12 (Ê)(Þ) | | | 2,000 | | | | 2,001 | |
Springleaf Finance Corp.
Series MTNI
4.875% due 07/15/12 (Ñ) | | | 200 | | | | 199 | |
Swedbank AB
2.900% due 01/14/13 (Þ) | | | 15,300 | | | | 15,531 | |
Telefonica Emisiones SAU
2.582% due 04/26/13 | | | 4,735 | | | | 4,717 | |
United States Treasury Bills
0.078% due 06/14/12 (ç)(ž) | | | 310 | | | | 310 | |
0.081% due 07/12/12 (ž) | | | 2,000 | | | | 1,999 | |
0.063% due 07/19/12 (ž) | | | 480 | | | | 480 | |
0.135% due 08/30/12 (ž) | | | 260 | | | | 260 | |
0.144% due 09/13/12 (ž) | | | 670 | | | | 670 | |
0.142% due 09/20/12 (ž) | | | 100 | | | | 100 | |
0.144% due 09/27/12 (ž) | | | 300 | | | | 300 | |
0.166% due 02/07/13 (ž) | | | 602 | | | | 601 | |
United States Treasury Inflation Indexed Bonds
0.625% due 04/15/13 (Æ) | | | 4,200 | | | | 4,281 | |
UnitedHealth Group, Inc.
4.875% due 02/15/13 | | | 400 | | | | 413 | |
Verizon Communications, Inc.
5.250% due 04/15/13 | | | 300 | | | | 313 | |
Volkswagen Auto Loan Enhanced Trust
Series 2012-1 Class A1
0.439% due 01/22/13 | | | 3,173 | | | | 3,176 | |
WCI Finance LLC / WEA Finance LLC
5.400% due 10/01/12 (Þ) | | | 753 | | | | 766 | |
World Omni Auto Receivables Trust
Series 2011-B Class A1
0.411% due 11/15/12 | | | 2,115 | | | | 2,115 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $1,463,994) | | | | | | | 1,464,743 | |
| | | | | | | | |
| | |
| Repurchase Agreements - 0.4% | | | | | | | | |
Agreement with Morgan Stanley Co. Incorporated and State Street Bank (Tri-Party) of $11,100 dated April 30, 2012 at 0.200% to be repurchased at $11,100 on May 1, 2012 collateralized by: $9,059 par various United States Treasury Obligations, valued at $11,117. | | | 11,100 | | | | 11,100 | |
| | |
| Russell Strategic Bond Fund | | 253 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Agreement with Morgan Stanley Co. Incorporated and State Street Bank (Tri-Party) of $20,100 dated April 30, 2012 at 0.200% to be repurchased at $20,100 on May 1, 2012 collateralized by: $19,505 par various United States Treasury Obligations, valued at $20,474. | | | 20,100 | | | | 20,100 | |
| | | | | | | | |
| | |
Total Repurchase Agreements
(cost $31,200) | | | | | | | 31,200 | |
| | | | | | | | |
| | |
| Other Securities - 0.6% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 3,640,247 | (¥) | | | 3,706 | |
Russell U.S. Cash Collateral Fund (×) | | | 48,054,708 | (¥) | | | 48,055 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $51,695) | | | | | | | 51,761 | |
| | | | | | | | |
| | |
Total Investments - 109.4%
(identified cost $8,692,502) | | | | | | | 8,826,786 | |
| | |
Other Assets and Liabilities,
Net - (9.4%) | | | | | | | (759,939 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 8,066,847 | |
| | | | | | | | |
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.
| | | | |
| | 254 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | | | |
Eurodollar Futures (CME) | | | 488 | | | | USD | | | | 121,152 | | | | 03/14 | | | | 230 | |
Eurodollar Futures (CME) | | | 406 | | | | USD | | | | 100,698 | | | | 06/14 | | | | 366 | |
Eurodollar Futures (CME) | | | 1,043 | | | | USD | | | | 258,390 | | | | 09/14 | | | | 515 | |
German Euro Bobl Futures (Germany) | | | 60 | | | | EUR | | | | 7,518 | | | | 06/12 | | | | 83 | |
German Euro Bund Futures (Germany) | | | 284 | | | | EUR | | | | 40,069 | | | | 06/12 | | | | 1,131 | |
United States Treasury 2 Year Note Futures | | | 1,869 | | | | USD | | | | 412,202 | | | | 06/12 | | | | 394 | |
United States Treasury 5 Year Note Futures | | | 2,741 | | | | USD | | | | 339,327 | | | | 06/12 | | | | 2,014 | |
United States Treasury 10 Year Note Futures | | | 2,477 | | | | USD | | | | 327,661 | | | | 06/12 | | | | 2,761 | |
United States Treasury 30 Year Note Futures | | | 818 | | | | USD | | | | 116,872 | | | | 06/12 | | | | 1,272 | |
United States Treasury Ultra Long-Term Bond Futures | | | 668 | | | | USD | | | | 105,419 | | | | 06/12 | | | | 913 | |
| | | | | |
Short Positions | | | | | | | | | | | | | | | | | | | | |
Eurodollar Futures (CME) | | | 348 | | | | USD | | | | 85,952 | | | | 03/15 | | | | (128 | ) |
Eurodollar Futures (CME) | | | 1,043 | | | | USD | | | | 256,734 | | | | 09/15 | | | | (672 | ) |
Eurodollar Futures (CME) | | | 406 | | | | USD | | | | 99,764 | | | | 12/15 | | | | (569 | ) |
Japan Government 10 Year Bond Futures (Japan) | | | 38 | | | | JPY | | | | 5,438,560 | | | | 06/12 | | | | (319 | ) |
United Kingdom Long Gilt Bond Futures (UK) | | | 76 | | | | GBP | | | | 8,786 | | | | 06/12 | | | | (14 | ) |
United States Treasury 2 Year Note Futures | | | 219 | | | | USD | | | | 48,300 | | | | 06/12 | | | | (55 | ) |
United States Treasury 5 Year Note Futures | | | 874 | | | | USD | | | | 108,199 | | | | 06/12 | | | | (294 | ) |
United States Treasury 10 Year Note Futures | | | 116 | | | | USD | | | | 15,345 | | | | 06/12 | | | | (112 | ) |
United States Treasury 30 Year Note Futures | | | 429 | | | | USD | | | | 61,293 | | | | 06/12 | | | | (533 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | 6,983 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 255 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | | | | | |
| Options Written | | Call/Put | | Number of
Contracts | | | Strike
Price | | Notional
Amount | | Expiration
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | |
Inflationary Floor Options | | Call | | | 1 | | | 0.00 | | USD | | 8,490 | | | 11/23/20 | | | | (19 | ) |
Inflationary Floor Options | | Put | | | 1 | | | 0.00 | | USD | | 1,300 | | | 03/10/20 | | | | (3 | ) |
Inflationary Floor Options | | Put | | | 1 | | | 0.00 | | USD | | 3,600 | | | 03/12/20 | | | | (4 | ) |
Inflationary Floor Options | | Put | | | 1 | | | 0.00 | | USD | | 8,800 | | | 04/07/20 | | | | (12 | ) |
Inflationary Floor Options | | Put | | | 1 | | | 0.00 | | USD | | 3,300 | | | 09/29/20 | | | | (5 | ) |
| | | | | | | |
| Swaptions | | | | | | | | | | | | | | | | | | | | |
(Fund Receives/Fund Pays) | | | | | | | | | | | | | | | | | | | | |
USD Three Month LIBOR/USD 1.400% | | Call | | | 2 | | | 0.00 | | | | 8,000 | | | 03/18/13 | | | | (84 | ) |
USD 0.920%/USD Three Month LIBOR | | Put | | | 2 | | | 0.00 | | | | 69,000 | | | 11/14/12 | | | | (62 | ) |
USD 1.000%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 6,400 | | | 08/13/12 | | | | (5 | ) |
USD 1.000%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 23,800 | | | 11/19/12 | | | | (5 | ) |
USD 1.200%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 17,100 | | | 07/11/13 | | | | (42 | ) |
USD 1.400%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 3,200 | | | 03/18/13 | | | | (43 | ) |
USD 1.400%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 4,800 | | | 03/18/13 | | | | (64 | ) |
USD 1.550%/USD Three Month LIBOR | | Put | | | 5 | | | 0.00 | | | | 138,900 | | | 08/13/12 | | | | (282 | ) |
USD 1.700%/USD Three Month LIBOR | | Put | | | 4 | | | 0.00 | | | | 144,400 | | | 08/13/12 | | | | (187 | ) |
USD 1.700%/USD Three Month LIBOR | | Put | | | 2 | | | 0.00 | | | | 24,300 | | | 08/13/12 | | | | (31 | ) |
USD 1.750%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 26,800 | | | 11/19/12 | | | | (2 | ) |
USD 2.000%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 8,700 | | | 03/18/13 | | | | (47 | ) |
USD 2.250%/USD Three Month LIBOR | | Put | | | 5 | | | 0.00 | | | | 119,500 | | | 09/24/12 | | | | (2 | ) |
USD 2.250%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 24,700 | | | 05/28/13 | | | | (6 | ) |
USD 2.750%/USD Three Month LIBOR | | Put | | | 2 | | | 0.00 | | | | 31,100 | | | 06/18/12 | | | | — | |
USD 3.000%/USD Three Month LIBOR | | Put | | | 6 | | | 0.00 | | | | 132,500 | | | 06/18/12 | | | | — | |
USD 3.250%/USD Three Month LIBOR | | Put | | | 2 | | | 0.00 | | | | 19,000 | | | 07/16/12 | | | | — | |
USD 10.000%/USD Three Month LIBOR | | Put | | | 1 | | | 0.00 | | | | 9,000 | | | 07/10/12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Liability for Options Written
(premiums received $6,932) | | | | | | | | | | | | | | (905 | ) |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 256 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Bank of America | | USD | | | 1,323 | | | EUR | | 1,000 | | | 05/03/12 | | | | 1 | |
Bank of America | | USD | | | 2,171 | | | JPY | | 177,993 | | | 06/20/12 | | | | 59 | |
Bank of America | | USD | | | 4,329 | | | JPY | | 359,493 | | | 06/20/12 | | | | 175 | |
Bank of America | | CAD | | | 2,373 | | | EUR | | 1,808 | | | 06/20/12 | | | | (6 | ) |
Bank of America | | JPY | | | 185,901 | | | EUR | | 1,743 | | | 06/20/12 | | | | (22 | ) |
Bank of America | | MXN | | | 30,904 | | | USD | | 2,345 | | | 05/22/12 | | | | (23 | ) |
Bank of Nova Scotia | | USD | | | 1,703 | | | EUR | | 1,300 | | | 06/14/12 | | | | 18 | |
Bank of Nova Scotia | | USD | | | 2,622 | | | EUR | | 2,001 | | | 06/14/12 | | | | 27 | |
Barclays Bank PLC | | USD | | | 300 | | | BRL | | 555 | | | 06/04/12 | | | | (11 | ) |
Barclays Bank PLC | | USD | | | 400 | | | BRL | | 741 | | | 06/04/12 | | | | (14 | ) |
Barclays Bank PLC | | USD | | | 1,067 | | | EUR | | 800 | | | 06/14/12 | | | | (7 | ) |
Barclays Bank PLC | | USD | | | 2,049 | | | EUR | | 1,544 | | | 06/20/12 | | | | (4 | ) |
Barclays Bank PLC | | USD | | | 2,130 | | | EUR | | 1,619 | | | 06/20/12 | | | | 14 | |
Barclays Bank PLC | | USD | | | 2,171 | | | EUR | | 1,662 | | | 06/20/12 | | | | 29 | |
Barclays Bank PLC | | USD | | | 2,291 | | | EUR | | 1,743 | | | 06/20/12 | | | | 16 | |
Barclays Bank PLC | | USD | | | 1,769 | | | EUR | | 1,348 | | | 07/16/12 | | | | 16 | |
Barclays Bank PLC | | USD | | | 2,101 | | | EUR | | 1,600 | | | 07/16/12 | | | | 18 | |
Barclays Bank PLC | | USD | | | 3,888 | | | GBP | | 2,426 | | | 05/02/12 | | | | 49 | |
Barclays Bank PLC | | USD | | | 21,456 | | | JPY | | 1,685,000 | | | 05/14/12 | | | | (349 | ) |
Barclays Bank PLC | | USD | | | 2,194 | | | JPY | | 175,044 | | | 06/20/12 | | | | (1 | ) |
Barclays Bank PLC | | USD | | | 559 | | | MXN | | 7,248 | | | 06/15/12 | | | | (5 | ) |
Barclays Bank PLC | | BRL | | | 22,363 | | | USD | | 12,021 | | | 07/18/12 | | | | 456 | |
Barclays Bank PLC | | CAD | | | 19,818 | | | USD | | 20,007 | | | 06/21/12 | | | | (32 | ) |
Barclays Bank PLC | | EUR | | | 6,425 | | | USD | | 8,536 | | | 05/11/12 | | | | 31 | |
Barclays Bank PLC | | EUR | | | 1,480 | | | USD | | 1,957 | | | 06/04/12 | | | | (3 | ) |
Barclays Bank PLC | | EUR | | | 1,684 | | | USD | | 2,219 | | | 06/20/12 | | | | (10 | ) |
Barclays Bank PLC | | EUR | | | 1,759 | | | USD | | 2,330 | | | 06/20/12 | | | | 2 | |
Barclays Bank PLC | | EUR | | | 12,871 | | | USD | | 16,846 | | | 07/16/12 | | | | (199 | ) |
Barclays Bank PLC | | GBP | | | 2,426 | | | USD | | 3,888 | | | 06/01/12 | | | | (49 | ) |
Barclays Bank PLC | | JPY | | | 89,134 | | | EUR | | 817 | | | 06/20/12 | | | | (36 | ) |
Barclays Bank PLC | | JPY | | | 1,289 | | | USD | | 16 | | | 05/14/12 | | | | — | |
Barclays Bank PLC | | JPY | | | 178,676 | | | USD | | 2,158 | | | 06/20/12 | | | | (81 | ) |
Barclays Bank PLC | | MXN | | | 3,200 | | | USD | | 251 | | | 05/10/12 | | | | 6 | |
Barclays Bank PLC | | MXN | | | 20,800 | | | USD | | 1,635 | | | 05/10/12 | | | | 39 | |
Barclays Bank PLC | | MXN | | | 95,144 | | | USD | | 7,166 | | | 05/25/12 | | | | (123 | ) |
Barclays Bank PLC | | MXN | | | 3,600 | | | USD | | 282 | | | 06/28/12 | | | | 7 | |
Citibank | | USD | | | 2,133 | | | AUD | | 2,048 | | | 06/20/12 | | | | (10 | ) |
Citibank | | USD | | | 2,138 | | | AUD | | 2,081 | | | 06/20/12 | | | | 20 | |
Citibank | | USD | | | 806 | | | BRL | | 1,525 | | | 06/04/12 | | | | (11 | ) |
Citibank | | USD | | | 2,165 | | | CAD | | 2,151 | | | 06/20/12 | | | | 10 | |
Citibank | | USD | | | 1,068 | | | EUR | | 800 | | | 06/14/12 | | | | (9 | ) |
Citibank | | USD | | | 1,462 | | | EUR | | 1,116 | | | 06/20/12 | | | | 16 | |
Citibank | | USD | | | 2,181 | | | EUR | | 1,662 | | | 06/20/12 | | | | 20 | |
Citibank | | USD | | | 2,233 | | | EUR | | 1,684 | | | 06/20/12 | | | | (3 | ) |
Citibank | | USD | | | 800 | | | GBP | | 500 | | | 05/02/12 | | | | 12 | |
Citibank | | USD | | | 2,169 | | | JPY | | 178,196 | | | 06/20/12 | | | | 64 | |
Citibank | | USD | | | 2,171 | | | JPY | | 179,822 | | | 06/20/12 | | | | 82 | |
Citibank | | AUD | | | 965 | | | CAD | | 1,006 | | | 06/20/12 | | | | 17 | |
Citibank | | AUD | | | 2,058 | | | USD | | 2,147 | | | 06/20/12 | | | | 14 | |
Citibank | | AUD | | | 2,299 | | | USD | | 2,380 | | | 06/20/12 | | | | (3 | ) |
Citibank | | CAD | | | 6,538 | | | USD | | 6,541 | | | 06/20/12 | | | | (70 | ) |
Citibank | | EUR | | | 1,659 | | | AUD | | 2,129 | | | 06/20/12 | | | | 10 | |
Citibank | | EUR | | | 1,671 | | | GBP | | 1,368 | | | 06/20/12 | | | | 7 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 257 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Citibank | | EUR | | | 1,545 | | | JPY | | 168,038 | | | 06/20/12 | | | | 60 | |
Citibank | | EUR | | | 1,672 | | | JPY | | 180,107 | | | 06/20/12 | | | | 43 | |
Citibank | | EUR | | | 1,631 | | | NZD | | 2,659 | | | 06/20/12 | | | | 8 | |
Citibank | | EUR | | | 11,989 | | | USD | | 15,870 | | | 05/02/12 | | | | — | |
Citibank | | EUR | | | 1,180 | | | USD | | 1,541 | | | 06/20/12 | | | | (22 | ) |
Citibank | | EUR | | | 1,659 | | | USD | | 2,190 | | | 06/20/12 | | | | (6 | ) |
Citibank | | EUR | | | 1,741 | | | USD | | 2,298 | | | 06/20/12 | | | | (7 | ) |
Citibank | | GBP | | | 1,364 | | | EUR | | 1,648 | | | 06/20/12 | | | | (31 | ) |
Citibank | | GBP | | | 1,362 | | | USD | | 2,159 | | | 06/20/12 | | | | (51 | ) |
Citibank | | JPY | | | 180,803 | | | EUR | | 1,659 | | | 06/20/12 | | | | (69 | ) |
Citibank | | JPY | | | 4,698,849 | | | USD | | 60,569 | | | 05/14/12 | | | | 1,710 | |
Citibank | | JPY | | | 176,205 | | | USD | | 2,169 | | | 06/20/12 | | | | (39 | ) |
Citibank | | JPY | | | 176,709 | | | USD | | 2,182 | | | 06/20/12 | | | | (32 | ) |
Citibank | | JPY | | | 177,919 | | | USD | | 2,169 | | | 06/20/12 | | | | (60 | ) |
Citibank | | JPY | | | 178,178 | | | USD | | 2,159 | | | 06/20/12 | | | | (74 | ) |
Citibank | | JPY | | | 178,694 | | | USD | | 2,188 | | | 06/20/12 | | | | (51 | ) |
Citibank | | JPY | | | 529,349 | | | USD | | 6,542 | | | 06/20/12 | | | | (91 | ) |
Citibank | | MXN | | | 14,000 | | | USD | | 1,098 | | | 06/21/12 | | | | 28 | |
Citibank | | MXN | | | 57,300 | | | USD | | 4,428 | | | 06/28/12 | | | | 52 | |
Citibank | | NZD | | | 2,642 | | | EUR | | 1,631 | | | 06/20/12 | | | | 6 | |
Citibank | | NZD | | | 3,184 | | | USD | | 2,579 | | | 06/20/12 | | | | (16 | ) |
Citibank | | SEK | | | 22,626 | | | USD | | 3,375 | | | 06/20/12 | | | | 15 | |
Credit Suisse First Boston | | USD | | | 1,632 | | | CHF | | 1,489 | | | 06/20/12 | | | | 9 | |
Credit Suisse First Boston | | USD | | | 2,314 | | | EUR | | 1,749 | | | 06/20/12 | | | | 1 | |
Credit Suisse First Boston | | USD | | | 2,314 | | | EUR | | 1,743 | | | 06/20/12 | | | | (7 | ) |
Credit Suisse First Boston | | USD | | | 2,190 | | | GBP | | 1,348 | | | 06/20/12 | | | | (3 | ) |
Credit Suisse First Boston | | USD | | | 2,180 | | | JPY | | 176,853 | | | 06/20/12 | | | | 36 | |
Credit Suisse First Boston | | USD | | | 2,186 | | | JPY | | 175,903 | | | 06/20/12 | | | | 18 | |
Credit Suisse First Boston | | AUD | | | 1,294 | | | USD | | 1,333 | | | 06/07/12 | | | | (10 | ) |
Credit Suisse First Boston | | CAD | | | 1,878 | | | EUR | | 1,430 | | | 06/20/12 | | | | (6 | ) |
Credit Suisse First Boston | | CAD | | | 2,073 | | | USD | | 2,083 | | | 06/20/12 | | | | (13 | ) |
Credit Suisse First Boston | | CHF | | | 2,230 | | | EUR | | 1,854 | | | 06/20/12 | | | | (4 | ) |
Credit Suisse First Boston | | EUR | | | 1,663 | | | GBP | | 1,370 | | | 06/20/12 | | | | 21 | |
Credit Suisse First Boston | | EUR | | | 1,665 | | | GBP | | 1,361 | | | 06/20/12 | | | | 3 | |
Credit Suisse First Boston | | EUR | | | 1,632 | | | JPY | | 180,307 | | | 06/20/12 | | | | 99 | |
Credit Suisse First Boston | | EUR | | | 1,633 | | | USD | | 2,159 | | | 06/20/12 | | | | (3 | ) |
Credit Suisse First Boston | | EUR | | | 1,653 | | | USD | | 2,169 | | | 06/20/12 | | | | (19 | ) |
Credit Suisse First Boston | | EUR | | | 1,662 | | | USD | | 2,176 | | | 06/20/12 | | | | (24 | ) |
Credit Suisse First Boston | | EUR | | | 1,743 | | | USD | | 2,269 | | | 06/20/12 | | | | (38 | ) |
Credit Suisse First Boston | | EUR | | | 12,870 | | | USD | | 16,861 | | | 07/16/12 | | | | (182 | ) |
Credit Suisse First Boston | | GBP | | | 1,356 | | | USD | | 2,188 | | | 06/20/12 | | | | (12 | ) |
Credit Suisse First Boston | | GBP | | | 1,370 | | | USD | | 2,155 | | | 06/20/12 | | | | (67 | ) |
Credit Suisse First Boston | | JPY | | | 178,496 | | | USD | | 2,169 | | | 06/20/12 | | | | (68 | ) |
Deutsche Bank AG | | USD | | | 874 | | | AUD | | 841 | | | 06/20/12 | | | | (2 | ) |
Deutsche Bank AG | | USD | | | 2,166 | | | AUD | | 2,097 | | | 06/20/12 | | | | 7 | |
Deutsche Bank AG | | USD | | | 2,189 | | | CAD | | 2,179 | | | 06/20/12 | | | | 15 | |
Deutsche Bank AG | | USD | | | 2,165 | | | CHF | | 1,984 | | | 06/20/12 | | | | 22 | |
Deutsche Bank AG | | USD | | | 661 | | | EUR | | 500 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | USD | | | 398 | | | EUR | | 300 | | | 06/14/12 | | | | (1 | ) |
Deutsche Bank AG | | USD | | | 929 | | | EUR | | 700 | | | 06/14/12 | | | | (2 | ) |
Deutsche Bank AG | | USD | | | 1,062 | | | EUR | | 800 | | | 06/14/12 | | | | (3 | ) |
Deutsche Bank AG | | USD | | | 1,347 | | | EUR | | 1,015 | | | 06/14/12 | | | | (3 | ) |
Deutsche Bank AG | | USD | | | 3,781 | | | EUR | | 2,900 | | | 06/14/12 | | | | 58 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 258 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Deutsche Bank AG | | USD | | | 1,313 | | | EUR | | 1,000 | | | 07/16/12 | | | | 11 | |
Deutsche Bank AG | | USD | | | 1,432 | | | GBP | | 900 | | | 05/02/12 | | | | 28 | |
Deutsche Bank AG | | USD | | | 2,387 | | | GBP | | 1,500 | | | 05/02/12 | | | | 47 | |
Deutsche Bank AG | | USD | | | 2,162 | | | GBP | | 1,363 | | | 06/20/12 | | | | 49 | |
Deutsche Bank AG | | USD | | | 21,458 | | | JPY | | 1,685,000 | | | 05/14/12 | | | | (352 | ) |
Deutsche Bank AG | | USD | | | 2,180 | | | JPY | | 177,096 | | | 06/20/12 | | | | 39 | |
Deutsche Bank AG | | USD | | | 4,362 | | | JPY | | 352,984 | | | 06/20/12 | | | | 61 | |
Deutsche Bank AG | | USD | | | 9 | | | MXN | | 117 | | | 06/15/12 | | | | — | |
Deutsche Bank AG | | USD | | | 1,502 | | | NZD | | 1,861 | | | 06/20/12 | | | | 15 | |
Deutsche Bank AG | | USD | | | 11,307 | | | NZD | | 13,826 | | | 06/20/12 | | | | (37 | ) |
Deutsche Bank AG | | CAD | | | 2,166 | | | JPY | | 177,650 | | | 06/20/12 | | | | 36 | |
Deutsche Bank AG | | CHF | | | 1,988 | | | AUD | | 2,107 | | | 06/20/12 | | | | (7 | ) |
Deutsche Bank AG | | EUR | | | 1,756 | | | AUD | | 2,273 | | | 06/20/12 | | | | 31 | |
Deutsche Bank AG | | EUR | | | 866 | | | GBP | | 707 | | | 06/20/12 | | | | — | |
Deutsche Bank AG | | EUR | | | 866 | | | GBP | | 705 | | | 06/20/12 | | | | (3 | ) |
Deutsche Bank AG | | EUR | | | 1,568 | | | GBP | | 1,293 | | | 06/20/12 | | | | 23 | |
Deutsche Bank AG | | EUR | | | 920 | | | JPY | | 100,291 | | | 06/20/12 | | | | 39 | |
Deutsche Bank AG | | EUR | | | 1,703 | | | JPY | | 181,964 | | | 06/20/12 | | | | 25 | |
Deutsche Bank AG | | EUR | | | 1,818 | | | JPY | | 195,459 | | | 06/20/12 | | | | 42 | |
Deutsche Bank AG | | EUR | | | 230 | | | USD | | 305 | | | 05/02/12 | | | | — | |
Deutsche Bank AG | | EUR | | | 1,544 | | | USD | | 2,042 | | | 06/20/12 | | | | (2 | ) |
Deutsche Bank AG | | EUR | | | 1,668 | | | USD | | 2,181 | | | 06/20/12 | | | | (28 | ) |
Deutsche Bank AG | | EUR | | | 4,206 | | | USD | | 5,544 | | | 06/20/12 | | | | (24 | ) |
Deutsche Bank AG | | EUR | | | 12,871 | | | USD | | 16,872 | | | 07/16/12 | | | | (172 | ) |
Deutsche Bank AG | | GBP | | | 1,437 | | | EUR | | 1,758 | | | 06/20/12 | | | | (4 | ) |
Deutsche Bank AG | | GBP | | | 8,126 | | | USD | | 12,869 | | | 05/02/12 | | | | (318 | ) |
Deutsche Bank AG | | GBP | | | 1,290 | | | USD | | 2,099 | | | 06/20/12 | | | | 7 | |
Deutsche Bank AG | | GBP | | | 1,795 | | | USD | | 2,851 | | | 06/20/12 | | | | (62 | ) |
Deutsche Bank AG | | JPY | | | 100,256 | | | EUR | | 928 | | | 06/20/12 | | | | (27 | ) |
Deutsche Bank AG | | JPY | | | 100,451 | | | EUR | | 928 | | | 06/20/12 | | | | (30 | ) |
Deutsche Bank AG | | JPY | | | 178,232 | | | EUR | | 1,633 | | | 06/20/12 | | | | (71 | ) |
Deutsche Bank AG | | JPY | | | 49,988 | | | USD | | 638 | | | 05/14/12 | | | | 12 | |
Deutsche Bank AG | | JPY | | | 175,366 | | | USD | | 2,194 | | | 06/20/12 | | | | (3 | ) |
Deutsche Bank AG | | NZD | | | 2,676 | | | CHF | | 1,961 | | | 06/20/12 | | | | (19 | ) |
Deutsche Bank AG | | NZD | | | 2,684 | | | EUR | | 1,667 | | | 06/20/12 | | | | 19 | |
HSBC Bank PLC | | USD | | | 2,208 | | | AUD | | 2,160 | | | 06/20/12 | | | | 31 | |
HSBC Bank PLC | | USD | | | 30,562 | | | CAD | | 30,326 | | | 06/20/12 | | | | 103 | |
HSBC Bank PLC | | USD | | | 68 | | | MXN | | 873 | | | 06/15/12 | | | | (1 | ) |
HSBC Bank PLC | | USD | | | 13,079 | | | NOK | | 74,926 | | | 06/20/12 | | | | (11 | ) |
HSBC Bank PLC | | USD | | | 14,424 | | | NOK | | 81,214 | | | 06/20/12 | | | | (259 | ) |
HSBC Bank PLC | | CAD | | | 2,160 | | | USD | | 2,169 | | | 06/20/12 | | | | (16 | ) |
HSBC Bank PLC | | EUR | | | 1,635 | | | NOK | | 12,537 | | | 06/20/12 | | | | 22 | |
HSBC Bank PLC | | EUR | | | 3,245 | | | NOK | | 24,640 | | | 06/20/12 | | | | 1 | |
HSBC Bank PLC | | EUR | | | 1,654 | | | USD | | 2,170 | | | 06/20/12 | | | | (20 | ) |
HSBC Bank PLC | | EUR | | | 1,743 | | | USD | | 2,303 | | | 06/20/12 | | | | (4 | ) |
HSBC Bank PLC | | GBP | | | 1,363 | | | EUR | | 1,666 | | | 06/20/12 | | | | (5 | ) |
HSBC Bank PLC | | GBP | | | 1,381 | | | EUR | | 1,680 | | | 06/20/12 | | | | (17 | ) |
HSBC Bank PLC | | JPY | | | 700,137 | | | USD | | 8,614 | | | 05/22/12 | | | | (157 | ) |
HSBC Bank PLC | | MXN | | | 187,500 | | | USD | | 14,296 | | | 05/03/12 | | | | (99 | ) |
HSBC Bank PLC | | MXN | | | 187,500 | | | USD | | 14,287 | | | 05/03/12 | | | | (107 | ) |
HSBC Bank PLC | | MXN | | | 500 | | | USD | | 39 | | | 06/28/12 | | | | 1 | |
HSBC Bank PLC | | MXN | | | 500 | | | USD | | 39 | | | 07/05/12 | | | | 1 | |
HSBC Bank PLC | | MXN | | | 700 | | | USD | | 54 | | | 07/05/12 | | | | 1 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 259 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
HSBC Bank PLC | | NOK | | | 15,228 | | | EUR | | 1,995 | | | 06/20/12 | | | | (15 | ) |
HSBC Bank PLC | | NOK | | | 25,157 | | | EUR | | 3,314 | | | 06/20/12 | | | | — | |
HSBC Bank PLC | | NOK | | | 30,288 | | | EUR | | 3,996 | | | 06/20/12 | | | | 8 | |
HSBC Bank PLC | | NOK | | | 30,433 | | | EUR | | 3,990 | | | 06/20/12 | | | | (25 | ) |
HSBC Bank PLC | | NOK | | | 8,086 | | | USD | | 1,396 | | | 06/20/12 | | | | (14 | ) |
HSBC Bank PLC | | NOK | | | 19,465 | | | USD | | 3,375 | | | 06/20/12 | | | | (20 | ) |
HSBC Bank PLC | | NOK | | | 40,816 | | | USD | | 7,078 | | | 06/20/12 | | | | (41 | ) |
JPMorgan Chase Bank | | USD | | | 2,145 | | | AUD | | 2,068 | | | 06/20/12 | | | | (1 | ) |
JPMorgan Chase Bank | | USD | | | 2,153 | | | AUD | | 2,103 | | | 06/20/12 | | | | 27 | |
JPMorgan Chase Bank | | USD | | | 2,188 | | | CAD | | 2,184 | | | 06/20/12 | | | | 20 | |
JPMorgan Chase Bank | | USD | | | 1,989 | | | CHF | | 1,808 | | | 06/20/12 | | | | 3 | |
JPMorgan Chase Bank | | USD | | | 15,734 | | | EUR | | 11,989 | | | 05/02/12 | | | | 135 | |
JPMorgan Chase Bank | | USD | | | 98 | | | EUR | | 74 | | | 05/03/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 266 | | | EUR | | 200 | | | 06/14/12 | | | | (2 | ) |
JPMorgan Chase Bank | | USD | | | 1,978 | | | EUR | | 1,500 | | | 06/14/12 | | | | 8 | |
JPMorgan Chase Bank | | USD | | | 2,045 | | | EUR | | 1,544 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 2,182 | | | EUR | | 1,667 | | | 06/20/12 | | | | 25 | |
JPMorgan Chase Bank | | USD | | | 2,188 | | | EUR | | 1,672 | | | 06/20/12 | | | | 25 | |
JPMorgan Chase Bank | | USD | | | 2,190 | | | EUR | | 1,657 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 1,588 | | | GBP | | 1,000 | | | 05/02/12 | | | | 35 | |
JPMorgan Chase Bank | | USD | | | 431 | | | GBP | | 272 | | | 06/20/12 | | | | 11 | |
JPMorgan Chase Bank | | USD | | | 2,163 | | | GBP | | 1,376 | | | 06/20/12 | | | | 70 | |
JPMorgan Chase Bank | | USD | | | 629 | | | JPY | | 50,000 | | | 05/14/12 | | | | (2 | ) |
JPMorgan Chase Bank | | USD | | | 2,152 | | | JPY | | 180,037 | | | 06/20/12 | | | | 104 | |
JPMorgan Chase Bank | | USD | | | 2,158 | | | JPY | | 181,248 | | | 06/20/12 | | | | 113 | |
JPMorgan Chase Bank | | USD | | | 2,169 | | | JPY | | 176,834 | | | 06/20/12 | | | | 47 | |
JPMorgan Chase Bank | | USD | | | 10,946 | | | JPY | | 881,861 | | | 06/20/12 | | | | 104 | |
JPMorgan Chase Bank | | USD | | | 10 | | | MXN | | 130 | | | 06/15/12 | | | | — | |
JPMorgan Chase Bank | | AUD | | | 2,107 | | | CHF | | 1,997 | | | 06/20/12 | | | | 18 | |
JPMorgan Chase Bank | | AUD | | | 2,107 | | | CHF | | 1,991 | | | 06/20/12 | | | | 11 | |
JPMorgan Chase Bank | | AUD | | | 2,159 | | | EUR | | 1,704 | | | 06/20/12 | | | | 19 | |
JPMorgan Chase Bank | | AUD | | | 4,723 | | | USD | | 4,808 | | | 06/20/12 | | | | (88 | ) |
JPMorgan Chase Bank | | CAD | | | 2,037 | | | EUR | | 1,563 | | | 06/20/12 | | | | 9 | |
JPMorgan Chase Bank | | CHF | | | 1,976 | | | USD | | 2,165 | | | 06/20/12 | | | | (13 | ) |
JPMorgan Chase Bank | | EUR | | | 2,276 | | | CAD | | 2,978 | | | 06/20/12 | | | | (2 | ) |
JPMorgan Chase Bank | | EUR | | | 1,792 | | | JPY | | 193,221 | | | 06/20/12 | | | | 48 | |
JPMorgan Chase Bank | | EUR | | | 1,624 | | | NOK | | 12,369 | | | 06/20/12 | | | | 7 | |
JPMorgan Chase Bank | | EUR | | | 7,628 | | | USD | | 10,012 | | | 05/22/12 | | | | (86 | ) |
JPMorgan Chase Bank | | EUR | | | 11,989 | | | USD | | 15,737 | | | 06/01/12 | | | | (135 | ) |
JPMorgan Chase Bank | | EUR | | | 1,544 | | | USD | | 2,039 | | | 06/20/12 | | | | (6 | ) |
JPMorgan Chase Bank | | EUR | | | 1,656 | | | USD | | 2,189 | | | 06/20/12 | | | | (4 | ) |
JPMorgan Chase Bank | | EUR | | | 1,985 | | | USD | | 2,627 | | | 06/20/12 | | | | (1 | ) |
JPMorgan Chase Bank | | GBP | | | 150 | | | USD | | 239 | | | 05/31/12 | | | | (4 | ) |
JPMorgan Chase Bank | | GBP | | | 1,379 | | | USD | | 2,167 | | | 06/20/12 | | | | (70 | ) |
JPMorgan Chase Bank | | JPY | | | — | | | USD | | 1 | | | 04/30/12 | | | | 1 | |
JPMorgan Chase Bank | | JPY | | | 241,779 | | | USD | | 3,005 | | | 05/22/12 | | | | (24 | ) |
JPMorgan Chase Bank | | JPY | | | 177,381 | | | USD | | 2,214 | | | 06/20/12 | | | | (9 | ) |
JPMorgan Chase Bank | | JPY | | | 357,472 | | | USD | | 4,321 | | | 06/20/12 | | | | (158 | ) |
JPMorgan Chase Bank | | NZD | | | 1,697 | | | USD | | 1,388 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | NZD | | | 1,830 | | | USD | | 1,502 | | | 06/20/12 | | | | 11 | |
JPMorgan Chase Bank | | ZAR | | | 132,361 | | | USD | | 16,808 | | | 06/08/12 | | | | (130 | ) |
Morgan Stanley & Co., Inc. | | USD | | | 400 | | | BRL | | 740 | | | 06/04/12 | | | | (14 | ) |
Morgan Stanley & Co., Inc. | | USD | | | 930 | | | BRL | | 1,719 | | | 06/04/12 | | | | (34 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 260 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Morgan Stanley & Co., Inc. | | USD | | | 3,178 | | | EUR | | 2,400 | | | 06/14/12 | | | | — | |
Morgan Stanley & Co., Inc. | | USD | | | 3,385 | | | EUR | | 2,581 | | | 06/20/12 | | | | 31 | |
Morgan Stanley & Co., Inc. | | USD | | | 1,179 | | | EUR | | 900 | | | 07/16/12 | | | | 12 | |
Morgan Stanley & Co., Inc. | | USD | | | 13,079 | | | GBP | | 8,030 | | | 06/20/12 | | | | (51 | ) |
Morgan Stanley & Co., Inc. | | BRL | | | 12,850 | | | USD | | 7,354 | | | 06/04/12 | | | | 658 | |
Morgan Stanley & Co., Inc. | | CAD | | | 1,887 | | | USD | | 1,899 | | | 06/20/12 | | | | (9 | ) |
Morgan Stanley & Co., Inc. | | EUR | | | 3,337 | | | GBP | | 2,758 | | | 06/20/12 | | | | 57 | |
Morgan Stanley & Co., Inc. | | EUR | | | 1,643 | | | JPY | | 178,058 | | | 06/20/12 | | | | 56 | |
Morgan Stanley & Co., Inc. | | JPY | | | 355,743 | | | USD | | 4,371 | | | 06/20/12 | | | | (87 | ) |
Morgan Stanley & Co., Inc. | | JPY | | | 717,154 | | | USD | | 8,675 | | | 06/20/12 | | | | (311 | ) |
Morgan Stanley & Co., Inc. | | SEK | | | 91,415 | | | EUR | | 10,246 | | | 06/20/12 | | | | (9 | ) |
Royal Bank of Canada | | USD | | | 2,174 | | | AUD | | 2,107 | | | 06/20/12 | | | | 10 | |
Royal Bank of Canada | | USD | | | 1,330 | | | CAD | | 1,333 | | | 06/20/12 | | | | 18 | |
Royal Bank of Canada | | USD | | | 2,165 | | | CAD | | 2,159 | | | 06/20/12 | | | | 18 | |
Royal Bank of Canada | | USD | | | 2,166 | | | CAD | | 2,160 | | | 06/20/12 | | | | 19 | |
Royal Bank of Canada | | USD | | | 2,186 | | | CAD | | 2,189 | | | 06/20/12 | | | | 27 | |
Royal Bank of Canada | | USD | | | 4,363 | | | CAD | | 4,370 | | | 06/20/12 | | | | 56 | |
Royal Bank of Canada | | USD | | | 1,334 | | | EUR | | 1,000 | | | 06/14/12 | | | | (10 | ) |
Royal Bank of Canada | | USD | | | 2,482 | | | EUR | | 1,883 | | | 06/20/12 | | | | 11 | |
Royal Bank of Canada | | USD | | | 641 | | | GBP | | 400 | | | 05/02/12 | | | | 9 | |
Royal Bank of Canada | | CAD | | | 2,134 | | | USD | | 2,152 | | | 06/20/12 | | | | (6 | ) |
Royal Bank of Canada | | CAD | | | 2,135 | | | USD | | 2,153 | | | 06/20/12 | | | | (6 | ) |
Royal Bank of Canada | | CAD | | | 2,149 | | | USD | | 2,165 | | | 06/20/12 | | | | (8 | ) |
Royal Bank of Canada | | CAD | | | 2,163 | | | USD | | 2,189 | | | 06/20/12 | | | | 2 | |
Royal Bank of Canada | | CAD | | | 2,168 | | | USD | | 2,187 | | | 06/20/12 | | | | (5 | ) |
Royal Bank of Canada | | CAD | | | 2,168 | | | USD | | 2,166 | | | 06/20/12 | | | | (26 | ) |
Royal Bank of Canada | | CAD | | | 2,170 | | | USD | | 2,186 | | | 06/20/12 | | | | (8 | ) |
Royal Bank of Canada | | CAD | | | 2,173 | | | USD | | 2,188 | | | 06/20/12 | | | | (10 | ) |
Royal Bank of Canada | | CAD | | | 2,174 | | | USD | | 2,181 | | | 06/20/12 | | | | (17 | ) |
Royal Bank of Canada | | CAD | | | 2,179 | | | USD | | 2,182 | | | 06/20/12 | | | | (21 | ) |
Royal Bank of Canada | | CAD | | | 2,190 | | | USD | | 2,181 | | | 06/20/12 | | | | (33 | ) |
Royal Bank of Canada | | CAD | | | 5,511 | | | USD | | 5,538 | | | 06/20/12 | | | | (34 | ) |
Royal Bank of Canada | | EUR | | | 1,173 | | | CAD | | 1,560 | | | 06/20/12 | | | | 24 | |
Royal Bank of Canada | | EUR | | | 1,626 | | | CAD | | 2,166 | | | 06/20/12 | | | | 37 | |
Royal Bank of Canada | | EUR | | | 1,640 | | | GBP | | 1,360 | | | 06/20/12 | | | | 35 | |
Royal Bank of Canada | | EUR | | | 9,553 | | | USD | | 12,535 | | | 06/20/12 | | | | (113 | ) |
Royal Bank of Canada | | EUR | | | 9 | | | USD | | 12 | | | 07/16/12 | | | | — | |
Royal Bank of Scotland PLC | | USD | | | 2,146 | | | AUD | | 2,055 | | | 06/20/12 | | | | (15 | ) |
Royal Bank of Scotland PLC | | USD | | | 2,186 | | | EUR | | 1,678 | | | 06/20/12 | | | | 35 | |
Royal Bank of Scotland PLC | | USD | | | 2,429 | | | EUR | | 1,819 | | | 06/20/12 | | | | (21 | ) |
Royal Bank of Scotland PLC | | USD | | | 2,158 | | | JPY | | 181,151 | | | 06/20/12 | | | | 112 | |
Royal Bank of Scotland PLC | | AUD | | | 2,066 | | | JPY | | 178,632 | | | 06/20/12 | | | | 97 | |
Royal Bank of Scotland PLC | | CAD | | | 2,123 | | | AUD | | 2,069 | | | 06/20/12 | | | | (2 | ) |
Royal Bank of Scotland PLC | | CAD | | | 3,018 | | | EUR | | 2,276 | | | 06/20/12 | | | | (39 | ) |
Royal Bank of Scotland PLC | | CAD | | | 2,151 | | | USD | | 2,169 | | | 06/20/12 | | | | (6 | ) |
Royal Bank of Scotland PLC | | EUR | | | 3,245 | | | GBP | | 2,702 | | | 06/20/12 | | | | 88 | |
Royal Bank of Scotland PLC | | EUR | | | 1,632 | | | JPY | | 181,144 | | | 06/20/12 | | | | 109 | |
Royal Bank of Scotland PLC | | EUR | | | 1,626 | | | NOK | | 12,394 | | | 06/20/12 | | | | 9 | |
Royal Bank of Scotland PLC | | EUR | | | 1,630 | | | NOK | | 12,483 | | | 06/20/12 | | | | 20 | |
Royal Bank of Scotland PLC | | EUR | | | 1,630 | | | NOK | | 12,464 | | | 06/20/12 | | | | 16 | |
Royal Bank of Scotland PLC | | EUR | | | 1,630 | | | NOK | | 12,452 | | | 06/20/12 | | | | 14 | |
Royal Bank of Scotland PLC | | EUR | | | 3,259 | | | NOK | | 24,983 | | | 06/20/12 | | | | 42 | |
Royal Bank of Scotland PLC | | EUR | | | 1,661 | | | NZD | | 2,667 | | | 06/20/12 | | | | (25 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 261 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Royal Bank of Scotland PLC | | EUR | | | 4,304 | | | SEK | | 38,346 | �� | | 06/20/12 | | | | (4 | ) |
Royal Bank of Scotland PLC | | EUR | | | 1,819 | | | USD | | 2,421 | | | 06/20/12 | | | | 13 | |
Royal Bank of Scotland PLC | | EUR | | | 2,315 | | | USD | | 3,041 | | | 06/20/12 | | | | (25 | ) |
Royal Bank of Scotland PLC | | GBP | | | 1,437 | | | EUR | | 1,758 | | | 06/20/12 | | | | (3 | ) |
Royal Bank of Scotland PLC | | GBP | | | 1,700 | | | SEK | | 18,630 | | | 06/20/12 | | | | 8 | |
Royal Bank of Scotland PLC | | GBP | | | 1,332 | | | USD | | 2,089 | | | 06/20/12 | | | | (73 | ) |
Royal Bank of Scotland PLC | | JPY | | | 182,582 | | | EUR | | 1,703 | | | 06/20/12 | | | | (33 | ) |
Royal Bank of Scotland PLC | | JPY | | | 93,755 | | | USD | | 1,122 | | | 06/20/12 | | | | (53 | ) |
Royal Bank of Scotland PLC | | JPY | | | 176,461 | | | USD | | 2,184 | | | 06/20/12 | | | | (27 | ) |
State Street Bank & Trust Co. | | USD | | | 2,150 | | | AUD | | 2,085 | | | 06/20/12 | | | | 11 | |
State Street Bank & Trust Co. | | USD | | | 4,316 | | | CAD | | 4,322 | | | 06/20/12 | | | | 54 | |
State Street Bank & Trust Co. | | USD | | | 1,818 | | | EUR | | 1,385 | | | 06/20/12 | | | | 16 | |
State Street Bank & Trust Co. | | USD | | | 2,493 | | | EUR | | 1,878 | | | 06/20/12 | | | | (6 | ) |
State Street Bank & Trust Co. | | USD | | | 2,158 | | | JPY | | 179,878 | | | 06/20/12 | | | | 96 | |
State Street Bank & Trust Co. | | USD | | | 2,165 | | | JPY | | 180,749 | | | 06/20/12 | | | | 100 | |
State Street Bank & Trust Co. | | USD | | | 3,472 | | | JPY | | 285,426 | | | 06/20/12 | | | | 105 | |
State Street Bank & Trust Co. | | AUD | | | 2,473 | | | CHF | | 2,376 | | | 06/20/12 | | | | 55 | |
State Street Bank & Trust Co. | | AUD | | | 2,142 | | | EUR | | 1,665 | | | 06/20/12 | | | | (16 | ) |
State Street Bank & Trust Co. | | AUD | | | 1,048 | | | USD | | 1,090 | | | 06/20/12 | | | | 4 | |
State Street Bank & Trust Co. | | CHF | | | 3,915 | | | EUR | | 3,254 | | | 06/20/12 | | | | (8 | ) |
State Street Bank & Trust Co. | | CHF | | | 11,821 | | | USD | | 12,943 | | | 06/20/12 | | | | (88 | ) |
State Street Bank & Trust Co. | | EUR | | | 1,303 | | | AUD | | 1,679 | | | 06/20/12 | | | | 16 | |
State Street Bank & Trust Co. | | EUR | | | 869 | | | USD | | 1,139 | | | 06/20/12 | | | | (13 | ) |
State Street Bank & Trust Co. | | EUR | | | 1,180 | | | USD | | 1,540 | | | 06/20/12 | | | | (23 | ) |
State Street Bank & Trust Co. | | EUR | | | 1,180 | | | USD | | 1,544 | | | 06/20/12 | | | | (18 | ) |
State Street Bank & Trust Co. | | EUR | | | 1,658 | | | USD | | 2,190 | | | 06/20/12 | | | | (5 | ) |
State Street Bank & Trust Co. | | EUR | | | 3,302 | | | USD | | 4,330 | | | 06/20/12 | | | | (42 | ) |
State Street Bank & Trust Co. | | GBP | | | 1,370 | | | USD | | 2,168 | | | 06/20/12 | | | | (55 | ) |
State Street Bank & Trust Co. | | JPY | | | 177,908 | | | EUR | | 1,670 | | | 06/20/12 | | | | (18 | ) |
State Street Bank & Trust Co. | | JPY | | | 359,369 | | | EUR | | 3,242 | | | 06/20/12 | | | | (211 | ) |
State Street Bank & Trust Co. | | JPY | | | 176,626 | | | USD | | 2,182 | �� | | 06/20/12 | | | | (31 | ) |
State Street Bank & Trust Co. | | JPY | | | 178,705 | | | USD | | 2,169 | | | 06/20/12 | | | | (70 | ) |
State Street Bank & Trust Co. | | JPY | | | 278,883 | | | USD | | 3,375 | | | 06/20/12 | | | | (119 | ) |
State Street Bank & Trust Co. | | JPY | | | 353,924 | | | USD | | 4,378 | | | 06/20/12 | | | | (57 | ) |
State Street Bank & Trust Co. | | NZD | | | 2,694 | | | EUR | | 1,664 | | | 06/20/12 | | | | 7 | |
UBS AG | | USD | | | 300 | | | BRL | | 556 | | | 06/04/12 | | | | (10 | ) |
UBS AG | | USD | | | 300 | | | BRL | | 556 | | | 06/04/12 | | | | (10 | ) |
UBS AG | | USD | | | 2,152 | | | CAD | | 2,144 | | | 06/20/12 | | | | 16 | |
UBS AG | | USD | | | 1,709 | | | EUR | | 1,300 | | | 06/14/12 | | | | 12 | |
UBS AG | | USD | | | 4,487 | | | EUR | | 3,400 | | | 06/14/12 | | | | 15 | |
UBS AG | | USD | | | 2,116 | | | EUR | | 1,607 | | | 06/20/12 | | | | 11 | |
UBS AG | | USD | | | 2,183 | | | EUR | | 1,663 | | | 06/20/12 | | | | 18 | |
UBS AG | | USD | | | 788 | | | EUR | | 600 | | | 07/16/12 | | | | 7 | |
UBS AG | | USD | | | 1,177 | | | EUR | | 900 | | | 07/16/12 | | | | 15 | |
UBS AG | | USD | | | 1,719 | | | EUR | | 1,300 | | | 07/16/12 | | | | 3 | |
UBS AG | | USD | | | 2,224 | | | GBP | | 1,400 | | | 05/02/12 | | | | 48 | |
UBS AG | | USD | | | 26,137 | | | JPY | | 2,050,000 | | | 05/14/12 | | | | (458 | ) |
UBS AG | | USD | | | 2,158 | | | JPY | | 181,151 | | | 06/20/12 | | | | 112 | |
UBS AG | | USD | | | 2,158 | | | JPY | | 179,569 | | | 06/20/12 | | | | 92 | |
UBS AG | | USD | | | 72 | | | MXN | | 924 | | | 06/15/12 | | | | (1 | ) |
UBS AG | | USD | | | 2,598 | | | SEK | | 17,806 | | | 06/20/12 | | | | 46 | |
UBS AG | | AUD | | | 1,308 | | | USD | | 1,371 | | | 06/20/12 | | | | 15 | |
UBS AG | | CAD | | | 2,168 | | | USD | | 2,186 | | | 06/20/12 | | | | (6 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 262 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
UBS AG | | CHF | | | 1,845 | | | USD | | 2,020 | | | 06/20/12 | | | | (15 | ) |
UBS AG | | CHF | | | 1,984 | | | USD | | 2,168 | | | 06/20/12 | | | | (19 | ) |
UBS AG | | CHF | | | 3,083 | | | USD | | 3,375 | | | 06/20/12 | | | | (24 | ) |
UBS AG | | EUR | | | 1,658 | | | GBP | | 1,348 | | | 06/20/12 | | | | (9 | ) |
UBS AG | | EUR | | | 1,630 | | | NOK | | 12,458 | | | 06/20/12 | | | | 15 | |
UBS AG | | EUR | | | 1,663 | | | USD | | 2,189 | | | 06/20/12 | | | | (13 | ) |
UBS AG | | GBP | | | 1,405 | | | USD | | 2,201 | | | 06/20/12 | | | | (78 | ) |
UBS AG | | JPY | | | 177,043 | | | AUD | | 2,081 | | | 06/20/12 | | | | (61 | ) |
UBS AG | | JPY | | | 719,826 | | | USD | | 9,284 | | | 05/14/12 | | | | 267 | |
UBS AG | | JPY | | | 178,140 | | | USD | | 2,187 | | | 06/20/12 | | | | (45 | ) |
UBS AG | | MXN | | | 1,500 | | | USD | | 118 | | | 06/28/12 | | | | 3 | |
UBS AG | | NZD | | | 2,113 | | | SEK | | 11,725 | | | 06/20/12 | | | | 19 | |
Westpac Banking Corp. | | USD | | | 2,130 | | | AUD | | 2,050 | | | 06/20/12 | | | | (5 | ) |
Westpac Banking Corp. | | USD | | | 2,132 | | | AUD | | 2,049 | | | 06/20/12 | | | | (8 | ) |
Westpac Banking Corp. | | USD | | | 2,151 | | | AUD | | 2,083 | | | 06/20/12 | | | | 8 | |
Westpac Banking Corp. | | USD | | | 2,170 | | | AUD | | 2,114 | | | 06/20/12 | | | | 21 | |
Westpac Banking Corp. | | USD | | | 4,283 | | | AUD | | 4,154 | | | 06/20/12 | | | | 23 | |
Westpac Banking Corp. | | USD | | | 4,341 | | | AUD | | 4,231 | | | 06/20/12 | | | | 45 | |
Westpac Banking Corp. | | USD | | | 2,158 | | | JPY | | 179,187 | | | 06/20/12 | | | | 87 | |
Westpac Banking Corp. | | USD | | | 2,157 | | | NZD | | 2,633 | | | 06/20/12 | | | | (11 | ) |
Westpac Banking Corp. | | USD | | | 3,357 | | | NZD | | 4,055 | | | 06/20/12 | | | | (51 | ) |
Westpac Banking Corp. | | AUD | | | 1,437 | | | JPY | | 119,505 | | | 06/20/12 | | | | 8 | |
Westpac Banking Corp. | | AUD | | | 422 | | | USD | | 435 | | | 06/20/12 | | | | (3 | ) |
Westpac Banking Corp. | | AUD | | | 1,691 | | | USD | | 1,742 | | | 06/20/12 | | | | (11 | ) |
Westpac Banking Corp. | | AUD | | | 2,075 | | | USD | | 2,138 | | | 06/20/12 | | | | (13 | ) |
Westpac Banking Corp. | | AUD | | | 2,080 | | | USD | | 2,139 | | | 06/20/12 | | | | (17 | ) |
Westpac Banking Corp. | | AUD | | | 2,113 | | | USD | | 2,179 | | | 06/20/12 | | | | (11 | ) |
Westpac Banking Corp. | | AUD | | | 2,116 | | | USD | | 2,171 | | | 06/20/12 | | | | (23 | ) |
Westpac Banking Corp. | | AUD | | | 4,116 | | | USD | | 4,283 | | | 06/20/12 | | | | 16 | |
Westpac Banking Corp. | | GBP | | | 1,812 | | | USD | | 2,923 | | | 05/31/12 | | | | (18 | ) |
Westpac Banking Corp. | | JPY | | | 119,177 | | | NZD | | 1,817 | | | 06/20/12 | | | | (12 | ) |
Westpac Banking Corp. | | JPY | | | 2,098,416 | | | USD | | 25,795 | | | 06/20/12 | | | | (499 | ) |
Westpac Banking Corp. | | NZD | | | 2,660 | | | USD | | 2,158 | | | 06/20/12 | | | | (10 | ) |
Westpac Banking Corp. | | NZD | | | 4,149 | | | USD | | 3,357 | | | 06/20/12 | | | | (24 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | | | (199 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Interest Rate Swap Contracts | | | | | | | | | | | | | | | |
Counterparty | | Notional
Amount | | | Fund Receives | | Fund Pays | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
Bank of America | | CAD | | | 8,600 | | | Canadian Dealer Offered Rate | | 2.173% | | | 08/09/17 | | | | (53 | ) |
Bank of America | | CAD | | | 7,000 | | | Canadian Dealer Offered Rate | | 2.115% | | | 08/29/17 | | | | (19 | ) |
Bank of America | | CAD | | | 5,600 | | | Canadian Dealer Offered Rate | | 2.180% | | | 08/31/17 | | | | (32 | ) |
Bank of America | | CAD | | | 6,500 | | | Canadian Dealer Offered Rate | | 1.898% | | | 09/14/17 | | | | 54 | |
Bank of America | | USD | | | 24,600 | | | Three Month LIBOR | | 2.000% | | | 06/20/19 | | | | (651 | ) |
Bank of America | | CAD | | | 11,600 | | | 3.158% | | Canadian Dealer Offered Rate | | | 08/09/22 | | | | 557 | |
Bank of America | | CAD | | | 9,400 | | | 2.972% | | Canadian Dealer Offered Rate | | | 08/29/22 | | | | 282 | |
Bank of America | | CAD | | | 7,500 | | | 3.029% | | Canadian Dealer Offered Rate | | | 08/31/22 | | | | 262 | |
Bank of America | | CAD | | | 8,700 | | | 2.658% | | Canadian Dealer Offered Rate | | | 09/14/22 | | | | 8 | |
Bank of America | | CAD | | | 3,300 | | | Canadian Dealer Offered Rate | | 3.586% | | | 08/09/42 | | | | (404 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 263 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Interest Rate Swap Contracts | |
Counterparty | | Notional
Amount | | | Fund Receives | | Fund Pays | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
Bank of America | | CAD | | | 2,600 | | | Canadian Dealer Offered Rate | | 3.325% | | | 08/29/42 | | | | (181 | ) |
Bank of America | | CAD | | | 2,100 | | | Canadian Dealer Offered Rate | | 3.377% | | | 08/31/42 | | | | (167 | ) |
Bank of America | | CAD | | | 2,300 | | | Canadian Dealer Offered Rate | | 2.888% | | | 09/14/42 | | | | 43 | |
Barclays Bank PLC | | EUR | | | 10,100 | | | Six Month EURIBOR | | 1.610% | | | 04/25/16 | | | | (30 | ) |
Barclays Bank PLC | | EUR | | | 35,600 | | | Six Month EURIBOR | | 1.585% | | | 05/02/16 | | | | (58 | ) |
Barclays Bank PLC | | MXN | | | 54,800 | | | 5.600% | | Mexico Interbank 28 Day Deposit Rate | | | 09/06/16 | | | | 42 | |
Barclays Bank PLC | | EUR | | | 4,640 | | | 2.235% | | Six Month EURIBOR | | | 02/03/19 | | | | 48 | |
Barclays Bank PLC | | EUR | | | 10,800 | | | 2.451% | | Six Month EURIBOR | | | 04/25/21 | | | | 26 | |
Barclays Bank PLC | | EUR | | | 38,100 | | | 2.477% | | Six Month EURIBOR | | | 05/02/21 | | | | 177 | |
Barclays Bank PLC | | GBP | | | 11,900 | | | Six Month LIBOR | | 4.030% | | | 02/10/27 | | | | (44 | ) |
Barclays Bank PLC | | USD | | | 8,605 | | | Three Month LIBOR | | 2.911% | | | 02/16/27 | | | | (423 | ) |
Barclays Bank PLC | | GBP | | | 6,700 | | | Six Month LIBOR | | 2.915% | | | 04/12/27 | | | | 22 | |
Barclays Bank PLC | | EUR | | | 1,800 | | | Six Month EURIBOR | | 2.875% | | | 02/03/29 | | | | (17 | ) |
Barclays Bank PLC | | EUR | | | 4,210 | | | Six Month EURIBOR | | 2.832% | | | 04/25/29 | | | | 13 | |
Barclays Bank PLC | | EUR | | | 14,900 | | | Six Month EURIBOR | | 2.883% | | | 05/02/29 | | | | (102 | ) |
Barclays Bank PLC | | GBP | | | 2,980 | | | 3.791% | | Six Month LIBOR | | | 02/10/52 | | | | 2 | |
Barclays Bank PLC | | GBP | | | 1,670 | | | 3.700% | | Six Month LIBOR | | | 04/12/52 | | | | (33 | ) |
Citibank | | EUR | | | 5,850 | | | Six Month EURIBOR | | 1.685% | | | 04/10/16 | | | | (31 | ) |
Citibank | | AUD | | | 700 | | | 4.250% | | Six Month BBSW | | | 06/15/17 | | | | 5 | |
Citibank | | AUD | | | 1,000 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 42 | |
Citibank | | EUR | | | 16,200 | | | 2.330% | | Six Month EURIBOR | | | 01/31/19 | | | | 269 | |
Citibank | | EUR | | | 12,600 | | | 2.275% | | Six Month EURIBOR | | | 02/03/19 | | | | 162 | |
Citibank | | EUR | | | 6,270 | | | 2.533% | | Six Month EURIBOR | | | 04/10/21 | | | | 65 | |
Citibank | | USD | | | 6,400 | | | 2.500% | | Three Month LIBOR | | | 06/20/22 | | | | 248 | |
Citibank | | GBP | | | 10,100 | | | Six Month LIBOR | | 3.940% | | | 02/22/27 | | | | 16 | |
Citibank | | GBP | | | 8,450 | | | Six Month LIBOR | | 3.905% | | | 02/23/27 | | | | 31 | |
Citibank | | GBP | | | 11,500 | | | Six Month LIBOR | | 3.940% | | | 04/25/27 | | | | 21 | |
Citibank | | EUR | | | 6,260 | | | Six Month EURIBOR | | 2.940% | | | 01/31/29 | | | | (128 | ) |
Citibank | | EUR | | | 4,890 | | | Six Month EURIBOR | | 2.880% | | | 02/03/29 | | | | (50 | ) |
Citibank | | EUR | | | 2,460 | | | Six Month EURIBOR | | 2.919% | | | 04/10/29 | | | | (30 | ) |
Citibank | | USD | | | 12,400 | | | Three Month LIBOR | | 2.750% | | | 06/20/32 | | | | (100 | ) |
Citibank | | GBP | | | 2,510 | | | 3.703% | | Six Month LIBOR | | | 02/22/52 | | | | (49 | ) |
Citibank | | GBP | | | 2,100 | | | 3.668% | | Six Month LIBOR | | | 02/23/52 | | | | (58 | ) |
Citibank | | GBP | | | 2,880 | | | 3.755% | | Six Month LIBOR | | | 04/25/52 | | | | (20 | ) |
Credit Suisse Financial Products | | EUR | | | 6,650 | | | Six Month EURIBOR | | 1.597% | | | 03/10/16 | | | | (27 | ) |
Credit Suisse Financial Products | | EUR | | | 16,300 | | | Six Month EURIBOR | | 1.590% | | | 03/10/16 | | | | (64 | ) |
Credit Suisse Financial Products | | EUR | | | 7,110 | | | 2.467% | | Six Month EURIBOR | | | 03/10/21 | | | | 51 | |
Credit Suisse Financial Products | | EUR | | | 17,500 | | | 2.467% | | Six Month EURIBOR | | | 03/10/21 | | | | 124 | |
Credit Suisse Financial Products | | EUR | | | 2,770 | | | Six Month EURIBOR | | 2.835% | | | 03/10/29 | | | | (1 | ) |
Credit Suisse Financial Products | | EUR | | | 6,800 | | | Six Month EURIBOR | | 2.840% | | | 03/10/29 | | | | (9 | ) |
Credit Suisse Financial Products | | USD | | | 12,500 | | | Three Month LIBOR | | 2.750% | | | 06/20/42 | | | | 230 | |
Deutsche Bank | | USD | | | 57,900 | | | Three Month LIBOR | | 1.432% | | | 02/28/15 | | | | (1,384 | ) |
Deutsche Bank | | AUD | | | 400 | | | 4.250% | | Six Month BBSW | | | 06/15/17 | | | | 3 | |
Deutsche Bank | | AUD | | | 500 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 21 | |
Deutsche Bank | | USD | | | 4,700 | | | 3.298% | | Three Month LIBOR | | | 03/22/21 | | | | 112 | |
Deutsche Bank | | USD | | | 14,400 | | | Three Month LIBOR | | 2.500% | | | 06/20/22 | | | | (558 | ) |
Deutsche Bank | | USD | | | 1,900 | | | Three Month LIBOR | | 3.638% | | | 03/22/31 | | | | (86 | ) |
Goldman Sachs | | USD | | | 27,300 | | | 1.500% | | Three Month LIBOR | | | 03/18/16 | | | | 26 | |
JPMorgan | | USD | | | 37,500 | | | 1.000% | | Three Month LIBOR | | | 06/20/14 | | | | 323 | |
JPMorgan | | USD | | | 14,000 | | | 1.750% | | Three Month LIBOR | | | 06/20/17 | | | | 412 | |
JPMorgan | | USD | | | 24,700 | | | Three Month LIBOR | | 2.000% | | | 06/20/19 | | | | (653 | ) |
JPMorgan | | USD | | | 11,100 | | | 3.250% | | Three Month LIBOR | | | 03/20/21 | | | | 240 | |
JPMorgan | | USD | | | 20,300 | | | 3.250% | | Three Month LIBOR | | | 03/21/21 | | | | 439 | |
JPMorgan | | USD | | | 11,900 | | | 3.225% | | Three Month LIBOR | | | 03/28/21 | | | | 240 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 264 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Interest Rate Swap Contracts | |
Counterparty | | Notional
Amount | | | Fund Receives | | Fund Pays | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
JPMorgan | | USD | | | 22,100 | | | 2.815% | | Three Month LIBOR | | | 05/02/21 | | | | — | |
JPMorgan | | USD | | | 14,600 | | | Three Month LIBOR | | 2.500% | | | 06/20/22 | | | | (566 | ) |
JPMorgan | | USD | | | 14,800 | | | 2.750% | | Three Month LIBOR | | | 06/20/27 | | | | 430 | |
JPMorgan | | USD | | | 16,600 | | | 2.750% | | Three Month LIBOR | | | 06/20/27 | | | | 482 | |
JPMorgan | | USD | | | 4,400 | | | Three Month LIBOR | | 3.613% | | | 03/20/31 | | | | (186 | ) |
JPMorgan | | USD | | | 8,000 | | | Three Month LIBOR | | 3.608% | | | 03/21/31 | | | | (333 | ) |
JPMorgan | | USD | | | 4,700 | | | Three Month LIBOR | | 3.580% | | | 03/28/31 | | | | (179 | ) |
JPMorgan | | USD | | | 8,600 | | | Three Month LIBOR | | 3.260% | | | 05/02/31 | | | | — | |
Morgan Stanley | | EUR | | | 8,280 | | | Six Month EURIBOR | | 1.625% | | | 04/25/16 | | | | (28 | ) |
Morgan Stanley | | EUR | | | 14,600 | | | Six Month EURIBOR | | 1.662% | | | 04/28/16 | | | | (61 | ) |
Morgan Stanley | | MXN | | | 5,700 | | | 5.600% | | Mexico Interbank 28 Day Deposit Rate | | | 09/06/16 | | | | 4 | |
Morgan Stanley | | EUR | | | 8,860 | | | 2.473% | | Six Month EURIBOR | | | 04/25/21 | | | | 37 | |
Morgan Stanley | | EUR | | | 15,700 | | | 2.512% | | Six Month EURIBOR | | | 04/28/21 | | | | 114 | |
Morgan Stanley | | EUR | | | 9,550 | | | 2.820% | | Six Month EURIBOR | | | 05/03/21 | | | | — | |
Morgan Stanley | | MXN | | | 5,100 | | | 6.350% | | Mexico Interbank 28 Day Deposit Rate | | | 06/02/21 | | | | 2 | |
Morgan Stanley | | EUR | | | 3,460 | | | Six Month EURIBOR | | 2.858% | | | 04/25/29 | | | | (4 | ) |
Morgan Stanley | | EUR | | | 6,110 | | | Six Month EURIBOR | | 2.906% | | | 04/28/29 | | | | (53 | ) |
Morgan Stanley | | EUR | | | 3,700 | | | Six Month EURIBOR | | 3.064% | | | 05/03/31 | | | | — | |
Morgan Stanley | | USD | | | 9,040 | | | Three Month LIBOR | | 2.830% | | | 02/18/42 | | | | (67 | ) |
Royal Bank of Canada | | CAD | | | 6,500 | | | Canadian Dealer Offered Rate | | 1.921% | | | 09/27/17 | | | | 50 | |
Royal Bank of Canada | | CAD | | | 8,700 | | | 2.697% | | Canadian Dealer Offered Rate | | | 09/27/22 | | | | 31 | |
Royal Bank of Canada | | CAD | | | 2,300 | | | Canadian Dealer Offered Rate | | 2.882% | | | 09/27/42 | | | | 46 | |
Royal Bank of Scotland | | EUR | | | 14,500 | | | Six Month EURIBOR | | 1.625% | | | 04/25/16 | | | | (48 | ) |
Royal Bank of Scotland | | AUD | | | 900 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 38 | |
Royal Bank of Scotland | | EUR | | | 15,500 | | | 2.473% | | Six Month EURIBOR | | | 04/25/21 | | | | 65 | |
Royal Bank of Scotland | | EUR | | | 6,040 | | | Six Month EURIBOR | | 2.858% | | | 04/25/29 | | | | (7 | ) |
UBS | | GBP | | | 13,200 | | | Six Month LIBOR | | 3.989% | | | 02/09/27 | | | | (2 | ) |
UBS | | GBP | | | 3,280 | | | 3.730% | | Six Month LIBOR | | | 02/09/52 | | | | (44 | ) |
| | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $510 (å) | | | | | | | (1,125 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| 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, Inc. | | Deutsche Bank | | | 0.506% | | | USD | | | 17,100 | | | 1.000% | | | 03/20/13 | | | | 90 | |
GE Capital Corp. | | Citibank | | | 0.840% | | | USD | | | 600 | | | 4.800% | | | 12/20/13 | | | | 43 | |
GE Capital Corp. | | JPMorgan | | | 1.322% | | | USD | | | 1,625 | | | 1.000% | | | 06/20/15 | | | | (14 | ) |
GE Capital Corp. | | Morgan Stanley | | | 1.337% | | | USD | | | 900 | | | 1.000% | | | 06/20/16 | | | | (10 | ) |
MetLife, Inc. | | Deutsche Bank | | | 0.935% | | | USD | | | 8,500 | | | 2.050% | | | 03/20/13 | | | | 100 | |
MetLife, Inc. | | UBS | | | 0.935% | | | USD | | | 8,500 | | | 2.050% | | | 03/20/13 | | | | 100 | |
MetLife, Inc. | | Deutsche Bank | | | 1.756% | | | USD | | | 2,300 | | | 1.000% | | | 03/20/15 | | | | (46 | ) |
MetLife, Inc. | | Deutsche Bank | | | 1.756% | | | USD | | | 1,200 | | | 1.000% | | | 03/20/15 | | | | (24 | ) |
MetLife, Inc. | | Deutsche Bank | | | 1.756% | | | USD | | | 1,300 | | | 1.000% | | | 03/20/15 | | | | (26 | ) |
Prudential Financial, Inc. | | Deutsche Bank | | | 0.666% | | | USD | | | 8,500 | | | 2.300% | | | 03/20/13 | | | | 151 | |
Prudential Financial, Inc. | | UBS | | | 0.666% | | | USD | | | 8,500 | | | 2.300% | | | 03/20/13 | | | | 152 | |
Prudential Financial, Inc. | | Deutsche Bank | | | 1.305% | | | USD | | | 300 | | | 1.000% | | | 03/20/16 | | | | (3 | ) |
Safeway, Inc. | | Credit Suisse Financial Products | | | 2.575% | | | USD | | | 4,600 | | | 1.000% | | | 06/20/17 | | | | (336 | ) |
Safeway, Inc. | | JPMorgan | | | 2.575% | | | USD | | | 2,675 | | | 1.000% | | | 06/20/17 | | | | (196 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
Total Market Value on Open Corporate Issues Premiums Paid (Received) - ($712) | | | | | | | | | | (19 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 265 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | |
| Credit Indices | |
Reference
Entity | | Counterparty | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | |
CMBX AJ Index | | Barclays Bank PLC | | | USD | | | | 6,500 | | | | (0.840% | ) | | | 10/12/52 | | | | 1,030 | |
CMBX AJ Index | | Barclays Bank PLC | | | USD | | | | 2,645 | | | | (0.840% | ) | | | 10/12/52 | | | | 419 | |
CMBX AJ Index | | Credit Suisse Financial Products | | | USD | | | | 3,690 | | | | (0.840% | ) | | | 10/12/52 | | | | 585 | |
CMBX AJ Index | | Credit Suisse Financial Products | | | USD | | | | 1,410 | | | | (0.840% | ) | | | 10/12/52 | | | | 223 | |
Dow Jones CDX Index | | Bank of America | | | USD | | | | 7,525 | | | | (1.000% | ) | | | 06/20/14 | | | | (89 | ) |
Dow Jones CDX Index | | Bank of America | | | USD | | | | 24,800 | | | | 1.000% | | | | 06/20/16 | | | | 175 | |
Dow Jones CDX Index | | Barclays Bank PLC | | | USD | | | | 15,100 | | | | 5.000% | | | | 06/20/15 | | | | 1,385 | |
Dow Jones CDX Index | | Citibank | | | USD | | | | 1,039 | | | | 0.401% | | | | 06/20/12 | | | | 1 | |
Dow Jones CDX Index | | Citibank | | | USD | | | | 4,818 | | | | 0.355% | | | | 06/20/12 | | | | 4 | |
Dow Jones CDX Index | | Citibank | | | USD | | | | 4,723 | | | | 0.360% | | | | 06/20/12 | | | | 4 | |
Dow Jones CDX Index | | Citigroup Global Markets | | | USD | | | | 445,000 | | | | (1.000% | ) | | | 06/20/17 | | | | (1,676 | ) |
Dow Jones CDX Index | | Credit Suisse Financial Products | | | USD | | | | 500 | | | | 5.000% | | | | 06/20/15 | | | | 46 | |
Dow Jones CDX Index | | Credit Suisse Financial Products | | | USD | | | | 7,800 | | | | (5.000% | ) | | | 06/20/17 | | | | 204 | |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | | 1,350 | | | | 0.530% | | | | 06/20/13 | | | | 9 | |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | | 1,300 | | | | 5.000% | | | | 06/20/15 | | | | 119 | |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | | 17,600 | | | | 1.000% | | | | 06/20/16 | | | | 124 | |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | | 33,900 | | | | (1.000% | ) | | | 06/20/14 | | | | (403 | ) |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | | 9,163 | | | | 0.708% | | | | 12/20/12 | | | | 49 | |
Dow Jones CDX Index | | Goldman Sachs | | | USD | | | | 7,600 | | | | 1.120% | | | | 12/20/12 | | | | 65 | |
Dow Jones CDX Index | | Goldman Sachs | | | USD | | | | 200 | | | | 5.000% | | | | 06/20/15 | | | | 18 | |
Dow Jones CDX Index | | HSBC | | | USD | | | | 3,600 | | | | 5.000% | | | | 06/20/15 | | | | 330 | |
Dow Jones CDX Index | | JPMorgan | | | USD | | | | 29,600 | | | | 1.000% | | | | 06/20/16 | | | | 208 | |
Dow Jones CDX Index | | JPMorgan | | | USD | | | | 46,800 | | | | (1.000% | ) | | | 06/20/14 | | | | (556 | ) |
Dow Jones CDX Index | | JPMorgan | | | USD | | | | 44,200 | | | | (1.000%) | | | | 06/20/14 | | | | (525 | ) |
Dow Jones CDX Index | | JPMorgan | | | USD | | | | 1,447 | | | | 0.553% | | | | 12/20/17 | | | | 27 | |
Dow Jones CDX Index | | JPMorgan | | | USD | | | | 2,000 | | | | 1.120% | | | | 12/20/12 | | | | 17 | |
Dow Jones CDX Index | | Merrill Lynch | | | USD | | | | 18,900 | | | | 1.640% | | | | 12/20/12 | | | | 235 | |
Dow Jones CDX Index | | Merrill Lynch | | | USD | | | | 18,900 | | | | 1.580% | | | | 12/20/12 | | | | 226 | |
Dow Jones CDX Index | | Morgan Stanley | | | USD | | | | 6,200 | | | | 5.000% | | | | 06/20/15 | | | | 569 | |
Dow Jones CDX Index | | Morgan Stanley | | | USD | | | | 4,850 | | | | (5.000%) | | | | 12/20/16 | | | | 68 | |
Dow Jones CDX Index | | Pershing | | | USD | | | | 1,736 | | | | 0.463% | | | | 06/20/13 | | | | 10 | |
Dow Jones CDX Index | | Pershing LLC 1st Republic P.B. | | | USD | | | | 579 | | | | 0.548% | | | | 12/20/17 | | | | 11 | |
Markit iTraxx SovX Series 7 Index | | Barclays Bank PLC | | | USD | | | | 3,270 | | | | (1.000%) | | | | 06/20/17 | | | | 257 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Credit Indices Premiums Paid (Received) - $3,728 | | | | | | | | 3,169 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | | | | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Brazil Government International Bond | | UBS | | | 0.600% | | | USD | | | 4,000 | | | | 1.190% | | | | 08/20/13 | | | | 41 | |
Brazil Government International Bond | | Barclays Bank PLC | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Deutsche Bank | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Deutsche Bank | | | 0.886% | | | USD | | | 1,300 | | | | 1.000% | | | | 06/20/15 | | | | 7 | |
Brazil Government International Bond | | Goldman Sachs | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Morgan Stanley | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Bank of America | | | 0.936% | | | USD | | | 1,800 | | | | 1.000% | | | | 09/20/15 | | | | 6 | |
Brazil Government International Bond | | Citibank | | | 0.936% | | | USD | | | 1,000 | | | | 1.000% | | | | 09/20/15 | | | | 3 | |
Brazil Government International Bond | | HSBC | | | 0.936% | | | USD | | | 500 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
Brazil Government International Bond | | JPMorgan | | | 0.936% | | | USD | | | 1,000 | | | | 1.000% | | | | 09/20/15 | | | | 3 | |
Brazil Government International Bond | | UBS | | | 0.936% | | | USD | | | 500 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
Brazil Government International Bond | | Barclays Bank PLC | | | 1.014% | | | USD | | | 1,700 | | | | 1.000% | | | | 03/20/16 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 266 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | | | | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Brazil Government International Bond | | Citibank | | | 1.047% | | | USD | | | 9,400 | | | | 1.000% | | | | 06/20/16 | | | | (12 | ) |
Brazil Government International Bond | | Credit Suisse Financial Products | | | 1.047% | | | USD | | | 6,500 | | | | 1.000% | | | | 06/20/16 | | | | (8 | ) |
Brazil Government International Bond | | Deutsche Bank | | | 1.047% | | | USD | | | 1,800 | | | | 1.000% | | | | 06/20/16 | | | | (2 | ) |
Brazil Government International Bond | | JPMorgan | | | 1.104% | | | USD | | | 700 | | | | 1.000% | | | | 09/20/16 | | | | (3 | ) |
China Government International Bond | | Bank of America | | | 0.696% | | | USD | | | 400 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
China Government International Bond | | Bank of America | | | 0.696% | | | USD | | | 1,100 | | | | 1.000% | | | | 06/20/15 | | | | 9 | |
China Government International Bond | | Citibank | | | 0.696% | | | USD | | | 300 | | | | 1.000% | | | | 06/20/15 | | | | 2 | |
China Government International Bond | | Royal Bank of Scotland | | | 0.696% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/15 | | | | 7 | |
China Government International Bond | | Barclays Bank PLC | | | 0.865% | | | USD | | | 700 | | | | 1.000% | | | | 03/20/16 | | | | 4 | |
China Government International Bond | | BNP Paribas | | | 0.865% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/16 | | | | 2 | |
China Government International Bond | | Barclays Bank PLC | | | 0.908% | | | USD | | | 12,400 | | | | 1.000% | | | | 06/20/16 | | | | 68 | |
China Government International Bond | | Deutsche Bank | | | 0.974% | | | USD | | | 400 | | | | 1.000% | | | | 09/20/16 | | | | 1 | |
China Government International Bond | | JPMorgan | | | 0.974% | | | USD | | | 300 | | | | 1.000% | | | | 09/20/16 | | | | 1 | |
China Government International Bond | | Morgan Stanley | | | 0.974% | | | USD | | | 300 | | | | 1.000% | | | | 09/20/16 | | | | 1 | |
France Government International Bond | | Bank of America | | | 1.665% | | | USD | | | 800 | | | | 0.250% | | | | 03/20/16 | | | | (40 | ) |
France Government International Bond | | Barclays Bank PLC | | | 1.665% | | | USD | | | 700 | | | | 0.250% | | | | 03/20/16 | | | | (35 | ) |
France Government International Bond | | Deutsche Bank | | | 1.665% | | | USD | | | 300 | | | | 0.250% | | | | 03/20/16 | | | | (15 | ) |
France Government International Bond | | Morgan Stanley | | | 1.665% | | | USD | | | 500 | | | | 0.250% | | | | 03/20/16 | | | | (25 | ) |
France Government International Bond | | Royal Bank of Scotland | | | 1.665% | | | USD | | | 500 | | | | 0.250% | | | | 03/20/16 | | | | (25 | ) |
France Government International Bond | | UBS | | | 1.665% | | | USD | | | 9,800 | | | | 0.250% | | | | 03/20/16 | | | | (493 | ) |
France Government International Bond | | UBS | | | 1.708% | | | USD | | | 10,000 | | | | 0.250% | | | | 06/20/16 | | | | (550 | ) |
France Government International Bond | | Barclays Bank PLC | | | 1.721% | | | USD | | | 7,605 | | | | 0.250% | | | | 09/20/16 | | | | (464 | ) |
France Government International Bond | | Barclays Bank PLC | | | 1.777% | | | USD | | | 200 | | | | 0.250% | | | | 09/20/16 | | | | (12 | ) |
France Government International Bond | | HSBC | | | 1.777% | | | USD | | | 300 | | | | 0.250% | | | | 09/20/16 | | | | (18 | ) |
France Government International Bond | | UBS | | | 1.777% | | | USD | | | 200 | | | | 0.250% | | | | 09/20/16 | | | | (12 | ) |
France Government International Bond | | Goldman Sachs | | | 1.837% | | | USD | | | 7,400 | | | | 0.250% | | | | 12/20/16 | | | | (495 | ) |
Indonesia Government International Bond | | Barclays Bank PLC | | | 1.428% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/16 | | | | (15 | ) |
Indonesia Government International Bond | | Barclays Bank PLC | | | 1.428% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/16 | | | | (15 | ) |
Indonesia Government International Bond | | Bank of America | | | 1.525% | | | USD | | | 1,200 | | | | 1.000% | | | | 09/20/16 | | | | (27 | ) |
Indonesia Government International Bond | | Morgan Stanley | | | 1.525% | | | USD | | | 3,100 | | | | 1.000% | | | | 09/20/16 | | | | (70 | ) |
Indonesia Government International Bond | | UBS | | | 1.525% | | | USD | | | 400 | | | | 1.000% | | | | 09/20/16 | | | | (9 | ) |
Japan Government International Bond | | Bank of America | | | 0.733% | | | USD | | | 200 | | | | 1.000% | | | | 03/20/16 | | | | 2 | |
Japan Government International Bond | | Bank of America | | | 0.733% | | | USD | | | 100 | | | | 1.000% | | | | 03/20/16 | | | | 1 | |
Japan Government International Bond | | JPMorgan | | | 0.733% | | | USD | | | 700 | | | | 1.000% | | | | 03/20/16 | | | | 8 | |
Japan Government International Bond | | Goldman Sachs | | | 0.770% | | | USD | | | 1,700 | | | | 1.000% | | | | 06/20/16 | | | | 19 | |
Kazakhstan Government International Bond | | Citibank | | | 1.905% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/16 | | | | (10 | ) |
Korea Government International Bond | | Deutsche Bank | | | 1.005% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/16 | | | | — | |
Korea Government International Bond | | Deutsche Bank | | | 1.005% | | | USD | | | 400 | | | | 1.000% | | | | 06/20/16 | | | | — | |
Korea Government International Bond | | Bank of America | | | 1.064% | | | USD | | | 600 | | | | 1.000% | | | | 09/20/16 | | | | (1 | ) |
Korea Government International Bond | | HSBC | | | 1.064% | | | USD | | | 400 | | | | 1.000% | | | | 09/20/16 | | | | (1 | ) |
Korea Government International Bond | | UBS | | | 1.064% | | | USD | | | 700 | | | | 1.000% | | | | 09/20/16 | | | | (2 | ) |
Mexico Government International Bond | | Bank of America | | | 0.875% | | | USD | | | 300 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
Mexico Government International Bond | | Citibank | | | 0.875% | | | USD | | | 700 | | | | 1.000% | | | | 09/20/15 | | | | 4 | |
Mexico Government International Bond | | Barclays Bank PLC | | | 0.951% | | | USD | | | 5,000 | | | | 1.000% | | | | 03/20/16 | | | | 18 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.951% | | | USD | | | 3,100 | | | | 1.000% | | | | 03/20/16 | | | | 11 | |
Mexico Government International Bond | | HSBC | | | 0.951% | | | USD | | | 4,700 | | | | 1.000% | | | | 03/20/16 | | | | 17 | |
Mexico Government International Bond | | JPMorgan | | | 0.952% | | | USD | | | 2,600 | | | | 0.920% | | | | 03/20/16 | | | | 1 | |
Mexico Government International Bond | | Citibank | | | 0.982% | | | USD | | | 12,800 | | | | 1.000% | | | | 06/20/16 | | | | 36 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.982% | | | USD | | | 3,300 | | | | 1.000% | | | | 06/20/16 | | | | 9 | |
Mexico Government International Bond | | Goldman Sachs | | | 0.982% | | | USD | | | 2,100 | | | | 1.000% | | | | 06/20/16 | | | | 6 | |
Mexico Government International Bond | | Credit Suisse Financial Products | | | 1.168% | | | USD | | | 400 | | | | 1.000% | | | | 06/20/17 | | | | (3 | ) |
Mexico Government International Bond | | Goldman Sachs | | | 1.168% | | | USD | | | 700 | | | | 1.000% | | | | 06/20/17 | | | | (6 | ) |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 700 | | | | 1.000% | | | | 03/20/15 | | | | 15 | |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 400 | | | | 1.000% | | | | 03/20/15 | | | | 9 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 267 |
Russell Investment Company
Russell Strategic Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | | | | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
United Kingdom Gilt | | Societe Generale | | | 0.271% | | | USD | | | 2,700 | | | | 1.000% | | | | 03/20/15 | | | | 59 | |
United Kingdom Gilt | | Societe Generale | | | 0.271% | | | USD | | | 4,000 | | | | 1.000% | | | | 03/20/15 | | | | 88 | |
United Kingdom Gilt | | Deutsche Bank | | | 0.433% | | | USD | | | 600 | | | | 1.000% | | | | 03/20/16 | | | | 14 | |
United Kingdom Gilt | | Citibank | | | 0.469% | | | USD | | | 5,700 | | | | 1.000% | | | | 06/20/16 | | | | 130 | |
United Kingdom Gilt | | Morgan Stanley | | | 0.469% | | | USD | | | 2,100 | | | | 1.000% | | | | 06/20/16 | | | | 48 | |
United Kingdom Gilt | | UBS | | | 0.469% | | | USD | | | 1,200 | | | | 1.000% | | | | 06/20/16 | | | | 27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Sovereign Issues Premiums Paid (Received) - ($2,480) | | | | | | | | (1,670 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Credit Default Swap Contracts Premiums Paid (Received) - $536 (å) | | | | | | | | 1,480 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | % of Net
Assets | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 563,432 | | | $ | 2,003 | | | $ | 565,435 | | | | 7.0 | |
Corporate Bonds and Notes | | | — | | | | 1,376,758 | | | | 36,179 | | | | 1,412,937 | | | | 17.5 | |
International Debt | | | — | | | | 616,945 | | | | 15,955 | | | | 632,900 | | | | 7.9 | |
Loan Agreements | | | — | | | | 19,169 | | | | — | | | | 19,169 | | | | 0.2 | |
Mortgage-Backed Securities | | | — | | | | 3,122,616 | | | | 81,358 | | | | 3,203,974 | | | | 39.7 | |
Municipal Bonds | | | — | | | | 148,594 | | | | 9,026 | | | | 158,352 | | | | 2.0 | |
Non-US Bonds | | | — | | | | 114,447 | | | | — | | | | 114,447 | | | | 1.4 | |
United States Government Agencies | | | — | | | | 119,380 | | | | — | | | | 119,380 | | | | 1.5 | |
United States Government Treasuries | | | — | | | | 1,048,800 | | | | — | | | | 1,048,800 | | | | 13.0 | |
Common Stocks | | | — | | | | — | | | | 105 | | | | 105 | | | | — | * |
Preferred Stocks | | | — | | | | — | | | | 3,583 | | | | 3,583 | | | | — | * |
Short-Term Investments | | | — | | | | 1,461,893 | | | | 3,582 | | | | 1,464,743 | | | | 18.2 | |
Repurchase Agreements | | | — | | | | 31,200 | | | | — | | | | 31,200 | | | | 0.4 | |
Other Securities | | | — | | | | 51,695 | | | | — | | | | 51,761 | | | | 0.6 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | — | | | | 8,674,929 | | | | 151,791 | | | | 8,826,786 | | | | 109.4 | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (9.4 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 6,983 | | | | — | | | | — | | | | 6,983 | | | | 0.1 | |
Options Written | | | — | | | | (862 | ) | | | (43 | ) | | | (905 | ) | | | (— | )* |
Foreign Currency Exchange Contracts | | | 2 | | | | (201 | ) | | | — | | | | (199 | ) | | | (— | )* |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 268 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | % of Net
Assets | |
| | | | | | | | | | | | | | | | | | | | |
Interest Rate Swap Contracts | | $ | — | | | $ | (1,661 | ) | | $ | 26 | | | $ | (1,635 | ) | | | — | * |
Credit Default Swap Contracts | | | — | | | | 511 | | | | 433 | | | | 944 | | | | — | * |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 6,985 | | | $ | (2,213 | ) | | $ | 416 | | | $ | 5,188 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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.
There were no significant transfers in and out of Level 1, 2 and 3 during the period ended April 30, 2012.
The significant inputs used in determining the fair values of Level 3 securities were as follows:
| | | | | | | | | | |
| Category | | Inputs | | Market Value
$ | | | % of Level 3
Instruments’
Total Market Value | |
| | | | | | | | | | |
| | | | | | | | | | |
Asset-Backed Securities | | Investment Manager Fair Value Recommendation | | $ | 2,003 | | | | 1.3 | |
Corporate Bonds and Notes | | Broker Quote | | | 36,179 | | | | 23.8 | |
International Debt | | Broker Quote | | | 4,893 | | | | 3.2 | |
| | Priced by Proxy/Reference Security | | | 11,062 | | | | 7.3 | |
Mortgage-Backed Securities | | Broker Quote | | | 81,358 | | | | 53.4 | |
Municipal Bond | | Investment Manager Fair Value Recommendation | | | 9,026 | | | | 5.9 | |
Common Stock | | Investment Manager Fair Value Recommendation | | | 105 | | | | 0.1 | |
Preferred Stock | | Investment Manager Fair Value Recommendation | | | 3,583 | | | | 2.3 | |
Short-Term Investments | | Broker Quote | | | 3,574 | | | | 2.4 | |
| | Investment Manager Fair Value Recommendation | | | 8 | | | | — | * |
Options Written | | Broker Quote | | | (19 | ) | | | — | * |
| | Other | | | (24 | ) | | | — | * |
Interest Rates Swap Contracts | | Other | | | 26 | | | | — | * |
Credit Default Swap Contracts | | Other | | | 433 | | | | 0.3 | |
| | | | | | | | | | |
| | | | $ | 152,207 | | | | 100.0 | |
| | | | | | | | | | |
| * | Less than .05% of Level 3 Instruments’ Total Market Value. |
A reconciliation of investments in which significant unobservable input (Level 3) were used in determining a value for the period ended April 30, 2012 were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Beginning
Balance
11/1/2011 | | | Gross
Purchases | | | Gross
Sales | | | Accrued
Discounts/
(Premiums) | | | Realized
Gain/
(Loss) | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | 4,524 | | | $ | — | | | $ | — | | | $ | 4 | | | $ | — | |
Corporate Bonds and Notes | | | 37,770 | | | | 10,597 | | | | 13,056 | | | | (47 | ) | | | 105 | |
International Debt | | | 11,670 | | | | 4,899 | | | | 1,244 | | | | (36 | ) | | | (184 | ) |
Loan Agreements | | | 8 | | | | — | | | | — | | | | — | | | | — | |
Mortgage-Backed Securities | | | 106,261 | | | | 3,451 | | | | 25,320 | | | | (2 | ) | | | (2 | ) |
Municipal Bonds | | | 5,813 | | | | — | | | | — | | | | 20 | | | | — | |
Common Stocks | | | — | | | | — | | | | — | | | | — | | | | — | |
Preferred Stocks | | | 3,604 | | | | — | | | | — | | | | — | | | | — | |
Short-Term Investments | | | 3,559 | | | | — | | | | 2 | | | | (23 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 173,209 | | | | 18,947 | | | | 39,622 | | | | (84 | ) | | | (81 | ) |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Options Written | | | (372 | ) | | | — | | | | — | | | | — | | | | 281 | |
Interest Rate Swap Contracts | | | — | | | | — | | | | — | | | | — | | | | — | |
Credit Default Swap Contracts | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Other Financial Instruments | | | (372 | ) | | | — | | | | — | | | | — | | | | 281 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 269 |
Russell Investment Company
Russell Strategic Bond Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Net
Transfers
into
Level 3 | | | Net
Transfers
out of
Level 3 | | | Net change
in Unrealized
Appreciation/
(Depreciation) | | | Ending
Balance at
4/30/2012 | | | Net change in
Unrealized
Appreciation/
(Depreciation)
on Investments
held as of
4/30/2012 | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | 775 | | | $ | 3,275 | | | $ | (25 | ) | | $ | 2,003 | | | $ | (25 | ) |
Corporate Bonds and Notes | | | — | | | | — | | | | 810 | | | | 36,179 | | | | 786 | |
International Debt | | | — | | | | 160 | | | | 1,010 | | | | 15,955 | | | | 642 | |
Loan Agreements | | | — | | | | 8 | | | | — | | | | — | | | | — | |
Mortgage-Backed Securities | | | — | | | | 3,674 | | | | 644 | | | | 81,358 | | | | 196 | |
Municipal Bonds | | | 3,394 | | | | — | | | | (201 | ) | | | 9,026 | | | | (201 | ) |
Common Stocks | | | 160 | | | | — | | | | (55 | ) | | | 105 | | | | (55 | ) |
Preferred Stocks | | | — | | | | — | | | | (21 | ) | | | 3,583 | | | | (22 | ) |
Short-Term Investments | | | 8 | | | | — | | | | 40 | | | | 3,582 | | | | 40 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 4,337 | | | | 7,117 | | | | 2,202 | | | | 151,791 | | | | 1,361 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Options Written | | | — | | | | — | | | | 48 | | | | (43 | ) | | | 26 | |
Interest Rate Swap Contracts | | | — | | | | — | | | | 26 | | | | 26 | | | | 26 | |
Credit Default Swap Contracts | | | — | | | | — | | | | 433 | | | | 433 | | | | 433 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments | | | — | | | | — | | | | 507 | | | | 416 | | | | 485 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 270 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Fair Value of Derivative Instruments — April 30, 2012 (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 | | $ | — | | | $ | 7,986 | | | $ | — | |
Daily variation margin on futures contracts* | | | — | | | | — | | | | 9,679 | |
Interest rate swap contracts, at market value | | | — | | | | — | | | | 5,915 | |
Credit default swap contracts, at market value | | | 7,752 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 7,752 | | | $ | 7,896 | | | $ | 15,594 | |
| | | | | | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 8,185 | | | $ | — | |
Daily variation margin on futures contracts* | | | — | | | | — | | | | 2,696 | |
Interest rate swap contracts, at market value | | | — | | | | — | | | | 7,040 | |
Credit default swap contracts, at market value | | | 6,272 | | | | — | | | | — | |
Options written, at market value | | | — | | | | — | | | | 905 | |
| | | | | | | | | | | | |
Total | | $ | 6,272 | | | $ | 8,185 | | | $ | 10,641 | |
| | | | | | | | | | | | |
| | | |
| Derivatives not accounted for as hedging instruments | | Credit
Contracts | | | Foreign
Currency
Contracts | | | Interest Rate
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | | | | | |
Investments** | | $ | — | | | $ | — | | | $ | 171 | |
Futures contracts | | | — | | | | — | | | | 26,792 | |
Options Written | | | — | | | | — | | | | 708 | |
Credit default swap contracts | | | (15,644 | ) | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | 7,708 | |
Foreign currency-related transactions | | | — | | | | 547 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | (15,644 | ) | | $ | 547 | | | $ | 35,379 | |
| | | | | | | | | | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | (6,560 | ) |
Options Written | | | — | | | | — | | | | 2,051 | |
Credit default swap contracts | | | 3,713 | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | (6,073 | ) |
Foreign currency-related transactions | | | — | | | | 5,193 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 3,713 | | | $ | 5,193 | | | $ | (10,582 | ) |
| | | | | | | | | | | | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets & Liabilities. |
| ** | | Includes net realized gain (loss) on purchased options as reported in the 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 Strategic Bond Fund | | 271 |
Russell Investment Company
Russell Strategic Bond Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 8,692,502 | |
Investments, at market***, ****** | | | 8,826,786 | |
Cash (restricted) | | | 11,112 | |
Foreign currency holdings* | | | 2,025 | |
Unrealized appreciation on foreign currency exchange contracts | | | 7,986 | |
Receivables: | | | | |
Dividends and interest | | | 50,346 | |
Dividends from affiliated Russell money market funds | | | 115 | |
Investments sold | | | 1,453,365 | |
Fund shares sold | | | 15,658 | |
Variation margin on futures contracts | | | 2.908 | |
Other receivable | | | 4,028 | |
Prepaid expenses | | | 13 | |
Interest rate swap contracts, at market value***** | | | 5,915 | |
Credit default swap contracts, at market value**** | | | 7,752 | |
| | | | |
Total assets | | | 10,388,009 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to custodian | | | 11,162 | |
Due to broker | | | 13,432 | |
Investments purchased | | | 2,207,512 | |
Fund shares redeemed | | | 11,359 | |
Accrued fees to affiliates | | | 4,403 | |
Other accrued expenses | | | 572 | |
Daily variation margin on futures contracts | | | 50 | |
Other payable | | | 171 | |
Unrealized depreciation on foreign currency exchange contracts | | | 8,185 | |
Options written, at market value** | | | 905 | |
Payable upon return of securities loaned | | | 51,695 | |
Interest rate swap contracts, at market value***** | | | 7,040 | |
Credit default swap contracts, at market value**** | | | 6,272 | |
| | | | |
Total liabilities | | | 2,322,758 | |
| | | | |
| | | | |
Net Assets | | $ | 8,065,251 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 272 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 21,472 | |
Accumulated net realized gain (loss) | | | 29,491 | |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 134,284 | |
Futures contracts | | | 6,983 | |
Options written | | | 6,027 | |
Credit default swap contracts | | | 944 | |
Interest rate swap contracts | | | (1,635 | ) |
Investments matured | | | (1,596 | ) |
Foreign currency-related transactions | | | (204 | ) |
Other investments | | | (11,873 | ) |
Shares of beneficial interest | | | 7,267 | |
Additional paid-in capital | | | 7,874,091 | |
| | | | |
Net Assets | | $ | 8,065,251 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 11.14 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | | $ | 11.57 | |
Class A — Net assets | | $ | 117,615,357 | |
Class A — Shares outstanding ($.01 par value) | | | 10,558,984 | |
Net asset value per share: Class C(a) | | $ | 11.13 | |
Class C — Net assets | | $ | 102,842,620 | |
Class C — Shares outstanding ($.01 par value) | | | 9,238,701 | |
Net asset value per share: Class E(a) | | $ | 11.07 | |
Class E — Net assets | | $ | 157,948,584 | |
Class E — Shares outstanding ($.01 par value) | | | 14,274,260 | |
Net asset value per share: Class I(a) | | $ | 11.03 | |
Class I — Net assets | | $ | 1,349,235,669 | |
Class I — Shares outstanding ($.01 par value) | | | 122,271,174 | |
Net asset value per share: Class S(a) | | $ | 11.17 | |
Class S — Net assets | | $ | 3,554,079,604 | |
Class S — Shares outstanding ($.01 par value) | | | 318,167,540 | |
Net asset value per share: Class Y(a) | | $ | 11.05 | |
Class Y — Net assets | | $ | 2,785,124,841 | |
Class Y — Shares outstanding ($.01 par value) | | | 252,146,604 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 2,059 | |
** Premiums received on options written | | $ | 6,932 | |
*** Securities on loan included in investments | | $ | 70,591 | |
**** Credit default swap contracts - premiums paid (received) | | $ | 536 | |
***** Interest rate swap contracts - premiums paid (received) | | $ | 510 | |
******Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 876,817 | |
(a) 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.
| | |
| Russell Strategic Bond Fund | | 273 |
Russell Investment Company
Russell Strategic Bond Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 217 | |
Dividends from affiliated Russell money market funds | | | 599 | |
Interest | | | 144,163 | |
Securities lending income | | | 133 | |
| | | | |
Total investment income | | | 145,112 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 19,412 | |
Administrative fees | | | 1,906 | |
Custodian fees | | | 810 | |
Distribution fees - Class A | | | 134 | |
Distribution fees - Class C | | | 377 | |
Transfer agent fees - Class A | | | 97 | |
Transfer agent fees - Class C | | | 91 | |
Transfer agent fees - Class E | | | 136 | |
Transfer agent fees - Class I | | | 655 | |
Transfer agent fees - Class S | | | 3,007 | |
Transfer agent fees - Class Y | | | 60 | |
Professional fees | | | 137 | |
Registration fees | | | 146 | |
Shareholder servicing fees - Class C | | | 126 | |
Shareholder servicing fees - Class E | | | 190 | |
Trustees’ fees | | | 81 | |
Printing fees | | | 71 | |
Miscellaneous | | | 60 | |
| | | | |
Expenses before reductions | | | 27,496 | |
Expense reductions | | | (656 | ) |
| | | | |
Net expenses | | | 26,840 | |
| | | | |
Net investment income (loss) | | | 118,272 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 37,789 | |
Futures contracts | | | 26,792 | |
Options written | | | 708 | |
Credit default swap contracts | | | (15,644 | ) |
Interest rate swap contracts | | | 7,708 | |
Foreign currency-related transactions | | | (711 | ) |
| | | | |
Net realized gain (loss) | | | 56,642 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 146,107 | |
Futures contracts | | | (6,560 | ) |
Options written | | | 2,051 | |
Credit default swap contracts | | | 3,713 | |
Interest rate swap contracts | | | (6,073 | ) |
Investment matured | | | 13,097 | |
Foreign currency-related transactions | | | 4,685 | |
Other investments | | | (10,008 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 147,012 | |
| | | | |
Net realized and unrealized gain (loss) | | | 203,654 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 321,926 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 274 | | | Russell Strategic Bond Fund |
Russell Investment Company
Russell Strategic Bond Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 118,272 | | | $ | 244,207 | |
Net realized gain (loss) | | | 56,642 | | | | 58,162 | |
Net change in unrealized appreciation (depreciation) | | | 147,012 | | | | (60,791 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 321,926 | | | | 241,578 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (1,467 | ) | | | (2,350 | ) |
Class C | | | (1,005 | ) | | | (2,335 | ) |
Class E | | | (2,117 | ) | | | (4,721 | ) |
Class I | | | (20,123 | ) | | | (44,429 | ) |
Class S | | | (49,626 | ) | | | (91,484 | ) |
Class Y | | | (43,559 | ) | | | (99,394 | ) |
From net realized gain | | | | | | | | |
Class A | | | (944 | ) | | | (1,624 | ) |
Class C | | | (929 | ) | | | (2,640 | ) |
Class E | | | (1,385 | ) | | | (3,695 | ) |
Class I | | | (12,047 | ) | | | (31,643 | ) |
Class S | | | (30,073 | ) | | | (60,671 | ) |
Class Y | | | (25,146 | ) | | | (70,508 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (188,421 | ) | | | (415,494 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 284,886 | | | | 661,332 | |
Fund Reimbursements | | | — | | | | 155 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 418,391 | | | | 487,571 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 7,646,860 | | | | 7,159,289 | |
| | | | | | | | |
End of period | | $ | 8,065,251 | | | $ | 7,646,860 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 21,472 | | | $ | 21,097 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 275 |
Russell Investment Company
Russell Strategic Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.95 | | | | .15 | | | | .29 | | | | .44 | | | | (.15 | ) | | | (.10 | ) |
October 31, 2011 | | | 11.24 | | | | .32 | | | | (.02 | ) | | | .30 | | | | (.33 | ) | | | (.26 | ) |
October 31, 2010 | | | 10.37 | | | | .37 | | | | .92 | | | | 1.29 | | | | (.42 | ) | | | — | |
October 31, 2009 | | | 9.23 | | | | .47 | | | | 1.19 | | | | 1.66 | | | | (.48 | ) | | | (.04 | ) |
October 31, 2008(3) | | | 9.99 | | | | .08 | | | | (.82 | ) | | | (.74 | ) | | | (.02 | ) | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.95 | | | | .11 | | | | .28 | | | | .39 | | | | (.11 | ) | | | (.10 | ) |
October 31, 2011 | | | 11.24 | | | | .24 | | | | (.03 | ) | | | .21 | | | | (.24 | ) | | | (.26 | ) |
October 31, 2010 | | | 10.37 | | | | .30 | | | | .91 | | | | 1.21 | | | | (.34 | ) | | | — | |
October 31, 2009 | | | 9.23 | | | | .40 | | | | 1.19 | | | | 1.59 | | | | (.41 | ) | | | (.04 | ) |
October 31, 2008(3) | | | 9.99 | | | | .06 | | | | (.80 | ) | | | (.74 | ) | | | (.02 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.88 | | | | .15 | | | | .29 | | | | .44 | | | | (.15 | ) | | | (.10 | ) |
October 31, 2011 | | | 11.17 | | | | .33 | | | | (.02 | ) | | | .31 | | | | (.34 | ) | | | (.26 | ) |
October 31, 2010 | | | 10.31 | | | | .39 | | | | .90 | | | | 1.29 | | | | (.43 | ) | | | — | |
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 | ) | | | — | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.85 | | | | .17 | | | | .28 | | | | .45 | | | | (.17 | ) | | | (.10 | ) |
October 31, 2011 | | | 11.14 | | | | .35 | | | | (.02 | ) | | | .33 | | | | (.36 | ) | | | (.26 | ) |
October 31, 2010 | | | 10.28 | | | | .41 | | | | .91 | | | | 1.32 | | | | (.46 | ) | | | — | |
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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.98 | | | | .16 | | | | .29 | | | | .45 | | | | (.16 | ) | | | (.10 | ) |
October 31, 2011 | | | 11.27 | | | | .35 | | | | (.03 | ) | | | .32 | | | | (.35 | ) | | | (.26 | ) |
October 31, 2010 | | | 10.39 | | | | .41 | | | | .92 | | | | 1.33 | | | | (.45 | ) | | | — | |
October 31, 2009 | | | 9.24 | | | | .50 | | | | 1.19 | | | | 1.69 | | | | (.50 | ) | | | (.04 | ) |
October 31, 2008(3) | | | 9.98 | | | | .08 | | | | (.80 | ) | | | (.72 | ) | | | (.02 | ) | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.86 | | | | .17 | | | | .29 | | | | .46 | | | | (.17 | ) | | | (.10 | ) |
October 31, 2011 | | | 11.15 | | | | .37 | | | | (.03 | ) | | | .34 | | | | (.37 | ) | | | (.26 | ) |
October 31, 2010 | | | 10.29 | | | | .42 | | | | .91 | | | | 1.33 | | | | (.47 | ) | | | — | |
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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 276 | | | Russell Strategic Bond Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.25 | ) | | | 11.14 | | | | 4.00 | | | | 117,592 | | | | 1.01 | | | | .99 | | | | 2.75 | | | | 91 | |
| | (.59 | ) | | | 10.95 | | | | 2.92 | | | | 100,094 | | | | 1.03 | | | | 1.00 | | | | 2.92 | | | | 233 | |
| | (.42 | ) | | | 11.24 | | | | 12.90 | | | | 66,054 | | | | 1.01 | | | | .96 | | | | 3.48 | | | | 206 | |
| | (.52 | ) | | | 10.37 | | | | 18.62 | | | | 40,181 | | | | 1.03 | | | | .93 | | | | 4.99 | | | | 154 | |
| | (.02 | ) | | | 9.23 | | | | (7.42 | ) | | | 22,437 | | | | 1.07 | | | | .93 | | | | 4.40 | | | | 131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.21 | ) | | | 11.13 | | | | 3.61 | | | | 102,823 | | | | 1.76 | | | | 1.74 | | | | 2.00 | | | | 91 | |
| | (.50 | ) | | | 10.95 | | | | 1.95 | | | | 100,729 | | | | 1.78 | | | | 1.75 | | | | 2.22 | | | | 233 | |
| | (.34 | ) | | | 11.24 | | | | 12.03 | | | | 114,841 | | | | 1.76 | | | | 1.71 | | | | 2.78 | | | | 206 | |
| | (.45 | ) | | | 10.37 | | | | 17.97 | | | | 108,353 | | | | 1.78 | | | | 1.67 | | | | 4.28 | | | | 154 | |
| | (.02 | ) | | | 9.23 | | | | (7.54 | ) | | | 97,063 | | | | 1.82 | | | | 1.68 | | | | 3.63 | | | | 131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.25 | ) | | | 11.07 | | | | 4.05 | | | | 157,917 | | | | 1.01 | | | | .95 | | | | 2.79 | | | | 91 | |
| | (.60 | ) | | | 10.88 | | | | 2.91 | | | | 150,015 | | | | 1.03 | | | | .94 | | | | 3.02 | | | | 233 | |
| | (.43 | ) | | | 11.17 | | | | 13.07 | | | | 155,358 | | | | 1.01 | | | | .87 | | | | 3.62 | | | | 206 | |
| | (.53 | ) | | | 10.31 | | | | 18.87 | | | | 146,696 | | | | 1.03 | | | | .81 | | | | 5.14 | | | | 154 | |
| | (.51 | ) | | | 9.18 | | | | (8.45 | ) | | | 135,857 | | | | 1.00 | | | | .88 | | | | 4.79 | | | | 131 | |
| | (.46 | ) | | | 10.53 | | | | 4.99 | | | | 18,101 | | | | .96 | | | | .93 | | | | 4.69 | | | | 698 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.27 | ) | | | 11.03 | | | | 4.20 | | | | 1,348,969 | | | | .68 | | | | .68 | | | | 3.06 | | | | 91 | |
| | (.62 | ) | | | 10.85 | | | | 3.27 | | | | 1,318,893 | | | | .70 | | | | .69 | | | | 3.27 | | | | 233 | |
| | (.46 | ) | | | 11.14 | | | | 13.17 | | | | 1,339,399 | | | | .68 | | | | .64 | | | | 3.86 | | | | 206 | |
| | (.55 | ) | | | 10.28 | | | | 19.21 | | | | 1,306,502 | | | | .70 | | | | .56 | | | | 5.39 | | | | 154 | |
| | (.54 | ) | | | 9.16 | | | | (8.26 | ) | | | 1,330,676 | | | | .69 | | | | .66 | | | | 5.10 | | | | 131 | |
| | (.49 | ) | | | 10.51 | | | | 5.27 | | | | 1,415,575 | | | | .70 | | | | .67 | | | | 4.97 | | | | 698 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.26 | ) | | | 11.17 | | | | 4.12 | | | | 3,553,377 | | | | .76 | | | | .74 | | | | 3.00 | | | | 91 | |
| | (.61 | ) | | | 10.98 | | | | 3.15 | | | | 3,220,163 | | | | .78 | | | | .75 | | | | 3.19 | | | | 233 | |
| | (.45 | ) | | | 11.27 | | | | 13.13 | | | | 2,536,795 | | | | .76 | | | | .71 | | | | 3.77 | | | | 206 | |
| | (.54 | ) | | | 10.39 | | | | 19.12 | | | | 2,173,609 | | | | .78 | | | | .67 | | | | 5.26 | | | | 154 | |
| | (.02 | ) | | | 9.24 | | | | (7.23 | ) | | | 1,915,099 | | | | .82 | | | | .69 | | | | 4.33 | | | | 131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.27 | ) | | | 11.05 | | | | 4.24 | | | | 2,784,574 | | | | .59 | | | | .58 | | | | 3.16 | | | | 91 | |
| | (.63 | ) | | | 10.86 | | | | 3.36 | | | | 2,756,966 | | | | .60 | | | | .59 | | | | 3.38 | | | | 233 | |
| | (.47 | ) | | | 11.15 | | | | 13.35 | | | | 2,946,842 | | | | .59 | | | | .56 | | | | 3.97 | | | | 206 | |
| | (.55 | ) | | | 10.29 | | | | 19.13 | | | | 3,526,522 | | | | .60 | | | | .52 | | | | 5.42 | | | | 154 | |
| | (.54 | ) | | | 9.16 | | | | (8.11 | ) | | | 3,166,974 | | | | .66 | | | | .55 | | | | 5.20 | | | | 131 | |
| | (.49 | ) | | | 10.51 | | | | 5.30 | | | | 134,926 | | | | .66 | | | | .63 | | | | 5.01 | | | | 698 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Strategic Bond Fund | | 277 |
Russell Investment Company
Russell Investment Grade Bond Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
April 30, 2012 | | $ | 1,031.14 | | | $ | 1,020.93 | |
Expenses Paid During Period* | | $ | 3.99 | | | $ | 3.97 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.79% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
| Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
April 30, 2012 | | $ | 1,027.69 | | | $ | 1,017.21 | |
Expenses Paid During Period* | | $ | 7.76 | | | $ | 7.72 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
| Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
April 30, 2012 | | $ | 1,031.26 | | | $ | 1,021.23 | |
Expenses Paid During Period* | | $ | 3.69 | | | $ | 3.67 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.73% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class I | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
| Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
April 30, 2012 | | $ | 1,033.10 | | | $ | 1,022.58 | |
Expenses Paid During Period* | | $ | 2.33 | | | $ | 2.31 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.46% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 278 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
| Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
April 30, 2012 | | $ | 1,032.26 | | | $ | 1,022.18 | |
Expenses Paid During Period* | | $ | 2.73 | | | $ | 2.72 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
| Beginning Account Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value
April 30, 2012 | | $ | 1,033.10 | | | $ | 1,023.07 | |
Expenses Paid During Period* | | $ | 1.82 | | | $ | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Investment Grade Bond Fund | | 279 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Long-Term Investments - 91.5% | | | | | |
| Asset-Backed Securities - 4.4% | | | | | |
Accredited Mortgage Loan Trust
Series 2007-1 Class A4
0.459% due 02/25/37 (Ê) | | | 2,583 | | | | 1,124 | |
ACE Securities Corp.
Series 2005-SD3 Class A
0.639% due 08/25/45 (Ê) | | | 90 | | | | 86 | |
Series 2006-HE4 Class A2A
0.299% due 10/25/36 (Ê) | | | 49 | | | | 13 | |
Ally Master Owner Trust
Series 2011-3 Class A2
1.810% due 05/15/16 | | | 1,550 | | | | 1,573 | |
Series 2012-1 Class A2
1.440% due 02/15/17 | | | 1,350 | | | | 1,356 | |
AmeriCredit Automobile Receivables Trust
Series 2010-1 Class B
3.720% due 11/17/14 | | | 2,630 | | | | 2,673 | |
Series 2010-4 Class A2
0.960% due 05/08/14 | | | 252 | | | | 252 | |
Series 2011-4 Class A3
1.170% due 05/09/16 | | | 1,560 | | | | 1,563 | |
Series 2012-2 Class A1
0.300% due 05/08/13 | | | 2,240 | | | | 2,240 | |
Ameriquest Mortgage Securities, Inc.
Series 2004-R10 Class A5
0.629% due 11/25/34 (Ê) | | | 1 | | | | 1 | |
Series 2005-R10 Class A2B
0.459% due 12/25/35 (Ê) | | | 532 | | | | 499 | |
Argent Securities, Inc.
Series 2003-W9 Class M1
1.274% due 03/25/34 (Ê) | | | 619 | | | | 505 | |
Asset Backed Funding Certificates
Series 2005-WMC1 Class M1
0.679% due 06/25/35 (Ê) | | | 1,883 | | | | 1,791 | |
Asset Backed Securities Corp. Home Equity
Series 2006-HE2 Class A1A
0.489% due 03/25/36 (Ê) | | | 1,346 | | | | 35 | |
Bayview Financial Acquisition Trust
Series 2006-A Class 1A3
5.865% due 02/28/41 | | | 410 | | | | 354 | |
Bear Stearns Asset Backed Securities Trust
Series 2005-TC2 Class A3
0.609% due 08/25/35 (Ê) | | | 1,945 | | | | 1,791 | |
Series 2007-HE5 Class 1A1
0.329% due 06/25/47 (Ê) | | | 13 | | | | 13 | |
BNC Mortgage Loan Trust
Series 2007-2 Class A2
0.339% due 05/25/37 (Ê) | | | 91 | | | | 82 | |
Series 2008-4 Class A3A
0.489% due 11/25/37 (Ê) | | | 780 | | | | 763 | |
Brazos Higher Education Authority
Series 2010-1 Class A2
1.691% due 02/25/35 (Ê) | | | 1,100 | | | | 1,045 | |
Series 2011-2 Class A3
1.466% due 10/27/36 (Ê) | | | 525 | | | | 472 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Carrington Mortgage Loan Trust
Series 2005-NC3 Class M1
0.679% due 06/25/35 (Ê) | | | 2,200 | | | | 1,823 | |
Series 2005-NC5 Class A2
0.559% due 10/25/35 (Ê) | | | 63 | | | | 59 | |
Series 2006-NC3 Class A3
0.389% due 08/25/36 (Ê) | | | 2,105 | | | | 718 | |
Centex Home Equity
Series 2003-B Class AF4
3.735% due 02/25/32 | | | 2,253 | | | | 1,961 | |
Series 2006-A Class AV4
0.489% due 06/25/36 (Ê) | | | 1,700 | | | | 978 | |
CIT Education Loan Trust
Series 2007-1 Class A
0.564% due 03/25/42 (Ê)(Þ) | | | 1,149 | | | | 1,046 | |
Citibank Omni Master Trust
Series 2009-A8 Class A8
2.340% due 05/16/16 (Ê)(Ñ)(Þ) | | | 1,000 | | | | 1,001 | |
Citigroup Mortgage Loan Trust, Inc.
Series 2006-HE1 Class A4
0.509% due 01/25/36 (Ê) | | | 1,242 | | | | 1,166 | |
Series 2007-AHL3 Class A3A
0.299% due 07/25/45 (Ê) | | | 130 | | | | 91 | |
Countrywide Asset-Backed Certificates
Series 2001-BC3 Class A
0.719% due 12/25/31 (Ê) | | | 61 | | | | 33 | |
Series 2005-4 Class MV1
0.699% due 10/25/35 (Ê) | | | 519 | | | �� | 505 | |
Series 2006-6 Class 2A2
0.419% due 09/25/36 (Ê) | | | 277 | | | | 231 | |
Series 2006-BC1 Class 1A
0.439% due 04/25/36 (Ê) | | | 621 | | | | 415 | |
Series 2006-BC4 Class 2A2
0.399% due 11/25/36 (Ê) | | | 1,725 | | | | 1,115 | |
Series 2007-7 Class 2A1
0.319% due 10/25/47 (Ê) | | | 12 | | | | 12 | |
Countrywide Home Equity Loan Trust
Series 2005-A Class 2A
0.480% due 04/15/35 (Ê) | | | 124 | | | | 79 | |
Credit-Based Asset Servicing and Securitization LLC
Series 2004-CB7 Class AF5
4.585% due 10/25/34 | | | 550 | | | | 542 | |
Series 2005-CB5 Class AV2
0.499% due 08/25/35 (Ê) | | | 53 | | | | 48 | |
DT Auto Owner Trust
Series 2011-2A Class A
0.960% due 01/15/14 (Þ) | | | 802 | | | | 801 | |
Series 2012-1A Class A
1.060% due 01/15/15 (Þ) | | | 1,710 | | | | 1,710 | |
Educational Funding of the South, Inc.
Series 2011-1 Class A2
1.116% due 04/25/35 (Ê) | | | 500 | | | | 462 | |
Fannie Mae Grantor Trust
Series 2003-T4 Class 1A
0.459% due 09/26/33 (Ê) | | | 129 | | | | 127 | |
Series 2003-T4 Class 2A5
5.407% due 09/26/33 | | | 736 | | | | 781 | |
| | | | |
| | 280 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Fannie Mae Whole Loan
Series 2003-W5 Class A
0.459% due 04/25/33 (Ê) | | | 96 | | | | 91 | |
Series 2003-W9 Class A
0.479% due 06/25/33 (Ê) | | | 151 | | | | 144 | |
Ford Credit Floorplan Master Owner Trust
Series 2010-5 Class A1
1.500% due 09/15/15 | | | 1,000 | | | | 1,009 | |
GE-WMC Mortgage Securities LLC
Series 2006-1 Class A2A
0.279% due 08/25/36 (Ê) | | | 11 | | | | 3 | |
GSAA Trust
Series 2006-2 Class 2A3
0.509% due 12/25/35 (Ê) | | | 570 | | | | 524 | |
Honda Auto Receivables Owner Trust
Series 2011-2 Class A3
0.940% due 03/18/15 | | | 530 | | | | 532 | |
HSBC Home Equity Loan Trust
Series 2005-1 Class A
0.530% due 01/20/34 (Ê) | | | 328 | | | | 301 | |
Series 2006-1 Class A1
0.400% due 01/20/36 (Ê) | | | 1,325 | | | | 1,217 | |
Series 2006-2 Class A1
0.390% due 03/20/36 (Ê) | | | 774 | | | | 716 | |
Series 2006-4 Class A3V
0.390% due 03/20/36 (Ê) | | | 1,511 | | | | 1,459 | |
Series 2007-1 Class AS
0.440% due 03/20/36 (Ê) | | | 1,332 | | | | 1,137 | |
Series 2007-2 Class A2V
0.400% due 07/20/36 (Ê) | | | 715 | | | | 711 | |
JP Morgan Mortgage Acquisition Corp.
Series 2007-CH3 Class A2
0.319% due 03/25/37 (Ê) | | | 70 | | | | 69 | |
JPMorgan Mortgage Acquisition Corp.
Series 2007-CH1 Class AV4
0.369% due 11/25/36 (Ê) | | | 2,575 | | | | 2,065 | |
Lehman ABS Manufactured Housing Contract Trust
Series 2001-B Class A4
5.270% due 04/15/40 | | | 815 | | | | 832 | |
Lehman XS Trust
Series 2005-1 Class 2A1
1.739% due 07/25/35 (Ê) | | | 270 | | | | 213 | |
Long Beach Mortgage Loan Trust
Series 2004-4 Class 1A1
0.799% due 10/25/34 (Ê) | | | 34 | | | | 28 | |
Morgan Stanley ABS Capital I
Series 2003-NC6 Class M1
1.439% due 06/25/33 (Ê) | | | 374 | | | | 292 | |
Series 2003-NC7 Class M1
1.289% due 06/25/33 (Ê) | | | 319 | | | | 259 | |
Series 2005-WMC1 Class M1
0.944% due 01/25/35 (Ê) | | | 48 | | | | 48 | |
Series 2007-HE2 Class A2B
0.329% due 01/25/37 (Ê) | | | 2,800 | | | | 997 | |
Series 2007-HE6 Class A1
0.299% due 05/25/37 (Ê) | | | 39 | | | | 33 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
New Century Home Equity Loan Trust
Series 2005-2 Class M1
0.669% due 06/25/35 (Ê) | | | 2,100 | | | | 1,741 | |
Series 2005-4 Class A2C
0.609% due 09/25/35 (Ê) | | | 2,077 | | | | 1,974 | |
Option One Mortgage Loan Trust
Series 2007-6 Class 2A1
0.299% due 07/25/37 (Ê) | | | 89 | | | | 85 | |
Ownit Mortgage Loan Asset Backed Certificates
Series 2006-6 Class A2C
0.399% due 09/25/37 (Ê) | | | 2,390 | | | | 788 | |
Park Place Securities, Inc.
Series 2004-MHQ1 Class M1
0.939% due 12/25/34 (Ê) | | | 992 | | | | 985 | |
Series 2004-WCW2 Class M1
0.859% due 10/25/34 (Ê) | | | 1,945 | | | | 1,935 | |
Series 2005-WCH1 Class M2
0.759% due 01/25/36 (Ê) | | | 1,975 | | | | 1,832 | |
Series 2005-WCW1 Class A3D
0.579% due 09/25/35 (Ê) | | | 797 | | | | 771 | |
PG&E Energy Recovery Funding LLC
Series 2005-1 Class A5
4.470% due 12/25/14 | | | 1,500 | | | | 1,527 | |
Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.399% due 01/25/36 | | | 180 | | | | 125 | |
Prestige Auto Receivables Trust
Series 2011-1A Class A3
1.900% due 08/17/15 (Þ) | | | 2,065 | | | | 2,074 | |
Renaissance Home Equity Loan Trust
Series 2005-2 Class AF4
4.934% due 08/25/35 | | | 585 | | | | 456 | |
Series 2006-1 Class AF6
5.746% due 05/25/36 | | | 288 | | | | 187 | |
Residential Asset Mortgage Products, Inc.
Series 2003-RS2 Class AII
0.919% due 03/25/33 (Ê) | | | 67 | | | | 46 | |
Series 2003-RS3 Class AII
0.959% due 04/25/33 (Ê) | | | 42 | | | | 30 | |
Series 2003-RS11 Class AI6A
5.980% due 12/25/33 | | | 196 | | | | 179 | |
Series 2004-RZ1 Class AI7
4.030% due 01/25/33 | | | 884 | | | | 892 | |
Residential Asset Securities Corp.
Series 2001-KS1 Class AII
0.709% due 03/25/32 (Ê) | | | 16 | | | | 15 | |
Series 2001-KS3 Class AII
0.699% due 09/25/31 (Ê) | | | 37 | | | | 29 | |
Series 2003-KS4 Class AIIB
0.819% due 06/25/33 (Ê) | | | 115 | | | | 65 | |
Series 2005-EMX3 Class M1
0.669% due 09/25/35 (Ê) | | | 978 | | | | 915 | |
Series 2005-KS12 Class A2
0.489% due 01/25/36 (Ê) | | | 954 | | | | 910 | |
Santander Drive Auto Receivables Trust
Series 2010-B Class A2
1.010% due 07/15/13 (Þ) | | | 281 | | | | 281 | |
| | |
| Russell Investment Grade Bond Fund | | 281 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2011-1 Class A3
1.280% due 01/15/15 | | | 1,560 | | | | 1,567 | |
Series 2011-2 Class B
2.660% due 01/15/16 | | | 970 | | | | 974 | |
Series 2011-3 Class B
2.500% due 12/15/15 | | | 1,310 | | | | 1,326 | |
Series 2012-2 Class B
2.090% due 08/15/16 | | | 1,345 | | | | 1,349 | |
Saxon Asset Securities Trust
Series 2004-1 Class A
0.779% due 03/25/35 (Ê) | | | 57 | | | | 39 | |
SLM Student Loan Trust
Series 2006-5 Class A6B
0.586% due 10/25/40 (Ê) | | | 1,000 | | | | 898 | |
Series 2012-A Class A2
3.830% due 01/17/45 (Þ) | | | 2,500 | | | | 2,534 | |
Series 2012-B Class A2
3.480% due 10/15/30 (Þ) | | | 2,110 | | | | 2,121 | |
Small Business Administration Participation Certificates
Series 2003-20I Class 1
5.130% due 09/01/23 | | | 38 | | | | 42 | |
Soundview Home Equity Loan Trust
Series 2006-WF2 Class A2C
0.379% due 12/25/36 (Ê) | | | 2,371 | | | | 2,100 | |
Specialty Underwriting & Residential Finance
Series 2003-BC1 Class A
0.919% due 01/25/34 (Ê) | | | 25 | | | | 19 | |
Structured Asset Securities Corp.
Series 2002-HF1 Class A
0.819% due 01/25/33 (Ê) | | | 9 | | | | 7 | |
Series 2006-WF2 Class A3
0.389% due 07/25/36 (Ê) | | | 1,945 | | | | 1,895 | |
Wells Fargo Home Equity Trust
Series 2004-2 Class AI6
5.000% due 05/25/34 | | | 1,900 | | | | 1,923 | |
| | | | | | | | |
| | | | | | | 81,251 | |
| | | | | | | | |
| |
| Corporate Bonds and Notes - 17.6% | | | | | |
Altria Group, Inc.
8.500% due 11/10/13 | | | 220 | | | | 245 | |
9.700% due 11/10/18 | | | 1,285 | | | | 1,745 | |
10.200% due 02/06/39 | | | 325 | | | | 520 | |
American Express Co.
7.000% due 03/19/18 | | | 200 | | | | 248 | |
American Express Credit Corp.
5.875% due 05/02/13 | | | 790 | | | | 829 | |
2.375% due 03/24/17 (Ñ) | | | 2,410 | | | | 2,457 | |
American International Group, Inc. | | | | | | | | |
3.750% due 11/30/13 (Þ) | | | 200 | | | | 203 | |
5.050% due 10/01/15 | | | 200 | | | | 214 | |
4.875% due 09/15/16 (Ñ) | | | 1,190 | | | | 1,269 | |
8.250% due 08/15/18 | | | 1,500 | | | | 1,817 | |
6.250% due 03/15/37 | | | 2,100 | | | | 1,904 | |
AmerisourceBergen Corp. | | | | | | | | |
5.875% due 09/15/15 | | | 540 | | | | 620 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Amgen, Inc.
3.875% due 11/15/21 | | | 665 | | | | 699 | |
5.650% due 06/15/42 | | | 300 | | | | 334 | |
Anadarko Petroleum Corp.
6.375% due 09/15/17 | | | 1,300 | | | | 1,545 | |
6.450% due 09/15/36 | | | 865 | | | | 1,026 | |
Analog Devices, Inc.
5.000% due 07/01/14 | | | 755 | | | | 822 | |
Anheuser-Busch Cos., Inc.
5.500% due 01/15/18 (Ñ) | | | 540 | | | | 643 | |
Anheuser-Busch InBev Worldwide, Inc.
5.375% due 01/15/20 (Ñ) | | | 1,830 | | | | 2,193 | |
Apache Corp.
6.000% due 09/15/13 | | | 460 | | | | 494 | |
3.250% due 04/15/22 | | | 2,055 | | | | 2,121 | |
Aristotle Holding, Inc.
4.750% due 11/15/21 (Þ) | | | 1,085 | | | | 1,187 | |
AT&T Corp.
8.000% due 11/15/31 | | | 275 | | | | 394 | |
AT&T, Inc.
5.100% due 09/15/14 | | | 240 | | | | 264 | |
2.950% due 05/15/16 | | | 2,835 | | | | 3,010 | |
6.500% due 09/01/37 | | | 1,095 | | | | 1,342 | |
Bank of America Corp.
7.375% due 05/15/14 | | | 1,655 | | | | 1,794 | |
4.750% due 08/01/15 (Ñ) | | | 920 | | | | 960 | |
3.625% due 03/17/16 | | | 325 | | | | 324 | |
5.625% due 10/14/16 | | | 1,120 | | | | 1,190 | |
6.000% due 09/01/17 | | | 655 | | | | 701 | |
5.750% due 12/01/17 | | | 950 | | | | 1,007 | |
Series MTNL
5.650% due 05/01/18 | | | 2,310 | | | | 2,443 | |
Bank of America NA
Series BKNT
0.754% due 06/15/16 (Ê) | | | 1,200 | | | | 1,064 | |
0.774% due 06/15/17 (Ê) | | | 1,340 | | | | 1,161 | |
6.100% due 06/15/17 | | | 2,880 | | | | 3,076 | |
6.000% due 10/15/36 | | | 300 | | | | 291 | |
BB&T Corp.
2.150% due 03/22/17 | | | 940 | | | | 944 | |
3.950% due 03/22/22 | | | 725 | | | | 745 | |
Bear Stearns Cos. LLC (The)
5.550% due 01/22/17 | | | 535 | | | | 593 | |
7.250% due 02/01/18 | | | 425 | | | | 517 | |
Becton Dickinson and Co.
3.250% due 11/12/20 (Ñ) | | | 590 | | | | 622 | |
Boeing Capital Corp.
2.125% due 08/15/16 | | | 425 | | | | 442 | |
Boston Scientific Corp.
4.500% due 01/15/15 | | | 1,085 | | | | 1,166 | |
Braskem America Finance Co.
7.125% due 07/22/41 (Ñ)(Þ) | | | 975 | | | | 980 | |
Broadcom Corp.
2.700% due 11/01/18 | | | 990 | | | | 1,019 | |
Burlington Northern and Santa Fe Railway Co. 2005-4 Pass Through Trust
4.967% due 04/01/23 | | | 142 | | | | 162 | |
| | | | |
| | 282 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Burlington Northern Santa Fe LLC | | | | | | | | |
3.450% due 09/15/21 | | | 565 | | | | 587 | |
6.875% due 12/01/27 | | | 90 | | | | 111 | |
Cameron International Corp.
1.414% due 06/02/14 (Ê) | | | 400 | | | | 401 | |
Capital One Financial Corp.
2.150% due 03/23/15 | | | 935 | | | | 941 | |
Caterpillar Financial Services Corp.
6.200% due 09/30/13 | | | 650 | | | | 701 | |
Caterpillar, Inc.
0.663% due 05/21/13 (Ê) | | | 1,600 | | | | 1,605 | |
CBS Corp.
4.300% due 02/15/21 | | | 955 | | | | 1,017 | |
Celgene Corp.
3.950% due 10/15/20 | | | 745 | | | | 780 | |
CenterPoint Energy Resources Corp.
6.125% due 11/01/17 | | | 125 | | | | 146 | |
Cigna Corp.
5.375% due 02/15/42 | | | 1,760 | | | | 1,864 | |
Cisco Systems, Inc.
4.950% due 02/15/19 | | | 750 | | | | 880 | |
Citigroup Capital XXI
8.300% due 12/21/57 | | | 1,000 | | | | 1,016 | |
Citigroup, Inc.
5.850% due 07/02/13 | | | 100 | | | | 104 | |
6.500% due 08/19/13 | | | 320 | | | | 337 | |
6.375% due 08/12/14 | | | 350 | | | | 377 | |
5.000% due 09/15/14 | | | 1,500 | | | | 1,551 | |
2.650% due 03/02/15 | | | 1,145 | | | | 1,143 | |
4.450% due 01/10/17 (Ñ) | | | 2,505 | | | | 2,617 | |
6.000% due 08/15/17 | | | 300 | | | | 333 | |
6.125% due 11/21/17 | | | 1,980 | | | | 2,197 | |
6.125% due 05/15/18 | | | 670 | | | | 744 | |
8.500% due 05/22/19 | | | 100 | | | | 124 | |
6.125% due 08/25/36 | | | 500 | | | | 495 | |
6.875% due 03/05/38 | | | 950 | | | | 1,106 | |
8.125% due 07/15/39 | | | 975 | | | | 1,270 | |
5.875% due 01/30/42 (Ñ) | | | 600 | | | | 638 | |
Cleco Power LLC
6.000% due 12/01/40 | | | 1,100 | | | | 1,246 | |
Cliffs Natural Resources, Inc.
4.875% due 04/01/21 (Ñ) | | | 435 | | | | 458 | |
Comcast Corp.
6.300% due 11/15/17 | | | 1,125 | | | | 1,365 | |
5.700% due 05/15/18 | | | 650 | | | | 771 | |
6.500% due 11/15/35 | | | 350 | | | | 427 | |
6.550% due 07/01/39 | | | 1,375 | | | | 1,704 | |
Commonwealth Edison Co.
5.800% due 03/15/18 | | | 865 | | | | 1,045 | |
ConocoPhillips
6.500% due 02/01/39 (Ñ) | | | 275 | | | | 372 | |
Continental Airlines 2007-1 Class A Pass Through Trust
Series 071A
5.983% due 04/19/22 | | | 2,417 | | | | 2,619 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Continental Airlines 2009-1 Pass Through Trust
Series 09-1
9.000% due 07/08/16 | | | 442 | | | | 504 | |
Corn Products International, Inc.
3.200% due 11/01/15 | | | 860 | | | | 900 | |
COX Communications, Inc.
5.450% due 12/15/14 | | | 210 | | | | 233 | |
Credit Suisse USA, Inc.
5.500% due 08/15/13 | | | 115 | | | | 121 | |
Crown Castle Towers LLC
3.214% due 08/15/15 (Þ) | | | 540 | | | | 549 | |
CSX Corp.
4.750% due 05/30/42 | | | 350 | | | | 351 | |
CVS Caremark Corp.
3.250% due 05/18/15 | | | 760 | | | | 808 | |
6.250% due 06/01/27 | | | 815 | | | | 1,000 | |
Daimler Finance NA LLC
1.950% due 03/28/14 (Þ) | | | 515 | | | | 522 | |
DCP Midstream Operating, LP
3.250% due 10/01/15 | | | 975 | | | | 985 | |
Delta Air Lines 2007-1 Class A Pass Through Trust
Series 071A
6.821% due 08/10/22 | | | 865 | | | | 936 | |
Delta Air Lines 2010-1 Class A Pass Through Trust
Series 1A
6.200% due 07/02/18 | | | 922 | | | | 998 | |
Devon Energy Corp.
4.000% due 07/15/21 | | | 485 | | | | 523 | |
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.
3.125% due 02/15/16 | | | 1,210 | | | | 1,259 | |
3.500% due 03/01/16 (Ñ) | | | 1,675 | | | | 1,768 | |
5.000% due 03/01/21 | | | 2,345 | | | | 2,565 | |
5.150% due 03/15/42 (Þ) | | | 950 | | | | 929 | |
Discover Financial Services
10.250% due 07/15/19 | | | 815 | | | | 1,108 | |
5.200% due 04/27/22 (Þ) | | | 815 | | | | 809 | |
Dominion Resources, Inc.
4.450% due 03/15/21 (Ñ) | | | 1,355 | | | | 1,528 | |
Dow Chemical Co. (The)
8.550% due 05/15/19 | | | 420 | | | | 557 | |
Duke Energy Carolinas LLC
6.000% due 01/15/38 | | | 325 | | | | 422 | |
Duke Energy Corp.
6.300% due 02/01/14 (Ñ) | | | 225 | | | | 246 | |
3.950% due 09/15/14 | | | 410 | | | | 439 | |
Ecolab, Inc.
4.350% due 12/08/21 | | | 865 | | | | 943 | |
Enterprise Products Operating LLC
5.250% due 01/31/20 | | | 1,190 | | | | 1,355 | |
Series O
9.750% due 01/31/14 | | | 830 | | | | 947 | |
ERAC USA Finance LLC
2.250% due 01/10/14 (Þ) | | | 1,385 | | | | 1,394 | |
7.000% due 10/15/37 (Þ) | | | 570 | | | | 664 | |
| | |
| Russell Investment Grade Bond Fund | | 283 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Exelon Corp.
4.900% due 06/15/15 | | | 1,965 | | | | 2,150 | |
Express Scripts Holding Co.
3.125% due 05/15/16 | | | 830 | | | | 866 | |
Farmers Exchange Capital
7.050% due 07/15/28 (Þ) | | | 1,310 | | | | 1,450 | |
7.200% due 07/15/48 (Þ) | | | 700 | | | | 722 | |
Farmers Insurance Exchange
8.625% due 05/01/24 (Þ) | | | 610 | | | | 785 | |
Freeport-McMoRan Copper & Gold, Inc.
2.150% due 03/01/17 | | | 1,095 | | | | 1,084 | |
FUEL Trust
3.984% due 06/15/16 (Þ) | | | 1,300 | | | | 1,347 | |
General Electric Capital Corp.
5.900% due 05/13/14 | | | 370 | | | | 404 | |
2.150% due 01/09/15 | | | 1,550 | | | | 1,577 | |
5.625% due 05/01/18 | | | 1,270 | | | | 1,472 | |
4.375% due 09/16/20 (Ñ) | | | 700 | | | | 750 | |
4.650% due 10/17/21 | | | 760 | | | | 826 | |
5.875% due 01/14/38 | | | 3,240 | | | | 3,623 | |
Series EMTN
0.623% due 03/20/14 (Ê) | | | 800 | | | | 783 | |
Series GMTN
6.150% due 08/07/37 | | | 670 | | | | 777 | |
6.875% due 01/10/39 | | | 1,100 | | | | 1,392 | |
Series MTNA
0.734% due 09/15/14 (Ê)(Ñ) | | | 2,130 | | | | 2,105 | |
General Electric Co.
5.250% due 12/06/17 (Ñ) | | | 1,155 | | | | 1,348 | |
Georgia-Pacific LLC
8.875% due 05/15/31 | | | 760 | | | | 1,038 | |
Gerdau Holdings, Inc.
7.000% due 01/20/20 (Þ) | | | 600 | | | | 683 | |
Series REGS
7.000% due 01/20/20 | | | 1,200 | | | | 1,365 | |
Gilead Sciences, Inc.
3.050% due 12/01/16 | | | 450 | | | | 476 | |
4.400% due 12/01/21 | | | 1,200 | | | | 1,304 | |
Goldman Sachs Group, Inc. (The)
4.750% due 07/15/13 | | | 320 | | | | 331 | |
5.250% due 10/15/13 (Ñ) | | | 150 | | | | 156 | |
3.300% due 05/03/15 | | | 755 | | | | 754 | |
3.625% due 02/07/16 | | | 750 | | | | 754 | |
6.250% due 09/01/17 (Ñ) | | | 1,025 | | | | 1,115 | |
6.150% due 04/01/18 | | | 360 | | | | 392 | |
7.500% due 02/15/19 | | | 1,134 | | | | 1,312 | |
5.375% due 03/15/20 | | | 1,200 | | | | 1,245 | |
5.250% due 07/27/21 | | | 1,500 | | | | 1,518 | |
5.750% due 01/24/22 (Ñ) | | | 3,080 | | | | 3,216 | |
5.950% due 01/15/27 | | | 250 | | | | 247 | |
6.450% due 05/01/36 | | | 125 | | | | 122 | |
6.750% due 10/01/37 | | | 1,065 | | | | 1,054 | |
GSPA Monetization Trust
6.422% due 10/09/29 (Þ) | | | 681 | | | | 653 | |
Hartford Financial Services Group, Inc.
5.375% due 03/15/17 | | | 460 | | | | 491 | |
5.125% due 04/15/22 (Ñ) | | | 480 | | | | 485 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
HCP, Inc.
3.750% due 02/01/16 | | | 555 | | | | 580 | |
6.300% due 09/15/16 | | | 500 | | | | 567 | |
6.700% due 01/30/18 | | | 1,025 | | | | 1,199 | |
Series MTNE
6.000% due 06/15/14 | | | 1,000 | | | | 1,066 | |
Health Care REIT, Inc.
6.125% due 04/15/20 | | | 1,700 | | | | 1,903 | |
5.250% due 01/15/22 (Ñ) | | | 1,065 | | | | 1,128 | |
6.500% due 03/15/41 | | | 750 | | | | 802 | |
Hewlett-Packard Co.
0.772% due 05/24/13 (Ê) | | | 1,900 | | | | 1,895 | |
4.750% due 06/02/14 (Ñ) | | | 865 | | | | 923 | |
3.300% due 12/09/16 | | | 1,575 | | | | 1,641 | |
3.750% due 12/01/20 | | | 825 | | | | 833 | |
4.650% due 12/09/21 | | | 850 | | | | 898 | |
Historic TW, Inc.
8.050% due 01/15/16 | | | 565 | | | | 662 | |
Home Depot, Inc.
5.875% due 12/16/36 | | | 450 | | | | 551 | |
HSBC Finance Corp.
6.676% due 01/15/21 | | | 975 | | | | 1,053 | |
HSBC USA, Inc.
2.375% due 02/13/15 | | | 950 | | | | 960 | |
Humana, Inc.
6.450% due 06/01/16 (Ñ) | | | 540 | | | | 618 | |
8.150% due 06/15/38 | | | 250 | | | | 332 | |
Hyundai Capital America
3.750% due 04/06/16 (Þ) | | | 965 | | | | 995 | |
Intel Corp.
1.950% due 10/01/16 (Ñ) | | | 540 | | | | 559 | |
3.300% due 10/01/21 | | | 760 | | | | 803 | |
International Business Machines Corp.
5.700% due 09/14/17 | | | 700 | | | | 843 | |
International Lease Finance Corp.
5.625% due 09/20/13 | | | 400 | | | | 407 | |
6.500% due 09/01/14 (Þ) | | | 2,675 | | | | 2,842 | |
5.750% due 05/15/16 | | | 100 | | | | 102 | |
6.750% due 09/01/16 (Þ) | | | 300 | | | | 324 | |
International Paper Co.
4.750% due 02/15/22 (Ñ) | | | 435 | | | | 464 | |
JPMorgan Chase & Co.
5.375% due 01/15/14 (Ñ) | | | 475 | | | | 508 | |
4.650% due 06/01/14 | | | 705 | | | | 751 | |
6.000% due 01/15/18 | | | 425 | | | | 491 | |
5.400% due 01/06/42 (Ñ) | | | 1,370 | | | | 1,479 | |
JPMorgan Chase Bank NA
Series BKNT
5.875% due 06/13/16 | | | 85 | | | | 95 | |
6.000% due 10/01/17 | | | 1,800 | | | | 2,067 | |
JPMorgan Chase Capital XIII
Series M
1.420% due 09/30/34 (Ê) | | | 625 | | | | 474 | |
JPMorgan Chase Capital XX
Series T
6.550% due 09/29/36 | | | 200 | | | | 201 | |
JPMorgan Chase Capital XXIII
1.503% due 05/15/47 (Ê) | | | 3,495 | | | | 2,586 | |
| | | | |
| | 284 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
JPMorgan Chase Capital XXVII
Series AA
7.000% due 11/01/39 | | | 930 | | | | 937 | |
Kaiser Foundation Hospitals
4.875% due 04/01/42 | | | 225 | | | | 237 | |
KCP&L Greater Missouri Operations Co.
8.270% due 11/15/21 | | | 425 | | | | 523 | |
Kellogg Co.
4.450% due 05/30/16 | | | 800 | | | | 893 | |
Kentucky Utilities Co.
Series WI
5.125% due 11/01/40 | | | 555 | | | | 654 | |
Kinder Morgan Energy Partners, LP | | | | | | | | |
5.000% due 12/15/13 | | | 115 | | | | 122 | |
3.500% due 03/01/16 | | | 735 | | | | 779 | |
6.950% due 01/15/38 | | | 625 | | | | 737 | |
Kraft Foods, Inc. | | | | | | | | |
2.625% due 05/08/13 | | | 4,900 | | | | 4,990 | |
4.125% due 02/09/16 | | | 760 | | | | 831 | |
6.125% due 02/01/18 | | | 900 | | | | 1,084 | |
5.375% due 02/10/20 (Ñ) | | | 525 | | | | 615 | |
6.500% due 02/09/40 (Ñ) | | | 1,450 | | | | 1,823 | |
Kroger Co. (The) | | | | | | | | |
2.200% due 01/15/17 | | | 1,040 | | | | 1,062 | |
Lehman Brothers Holdings Capital Trust VII | | | | | | | | |
5.857% due 11/29/49 (ƒ)(Ø) | | | 1,450 | | | | — | |
Lehman Brothers Holdings, Inc. | | | | | | | | |
6.500% due 07/19/17 (Ø) | | | 390 | | | | — | |
6.750% due 12/28/17 (Ø) | | | 990 | | | | — | |
Lockheed Martin Corp. | | | | | | | | |
3.350% due 09/15/21 | | | 810 | | | | 833 | |
Lorillard Tobacco Co. | | | | | | | | |
8.125% due 06/23/19 | | | 1,245 | | | | 1,551 | |
6.875% due 05/01/20 (Ñ) | | | 1,075 | | | | 1,275 | |
Lowe’s Cos., Inc. | | | | | | | | |
1.625% due 04/15/17 | | | 1,290 | | | | 1,291 | |
3.800% due 11/15/21 (Ñ) | | | 540 | | | | 570 | |
3.120% due 04/15/22 | | | 685 | | | | 694 | |
Macy’s Retail Holdings, Inc. | | | | | | | | |
3.875% due 01/15/22 (Ñ) | | | 435 | | | | 448 | |
5.125% due 01/15/42 (Ñ) | | | 675 | | | | 682 | |
Manufacturers & Traders Trust Co. | | | | | | | | |
5.585% due 12/28/20 | | | 180 | | | | 176 | |
Marathon Petroleum Corp. | | | | | | | | |
Series WI | | | | | | | | |
3.500% due 03/01/16 | | | 695 | | | | 729 | |
Marriott International, Inc. | | | | | | | | |
3.000% due 03/01/19 | | | 785 | | | | 780 | |
MassMutual Global Funding II | | | | | | | | |
2.000% due 04/05/17 (Þ) | | | 920 | | | | 925 | |
Mead Johnson Nutrition Co. | | | | | | | | |
4.900% due 11/01/19 | | | 50 | | | | 57 | |
Medtronic, Inc. | | | | | | | | |
4.500% due 03/15/42 | | | 1,050 | | | | 1,101 | |
Merrill Lynch & Co., Inc. | | | | | | | | |
6.400% due 08/28/17 | | | 1,460 | | | | 1,578 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
MetLife, Inc. | | | | | | | | |
4.750% due 02/08/21 (Ñ) | | | 770 | | | | 849 | |
10.750% due 08/01/39 | | | 750 | | | | 1,043 | |
Metropolitan Life Global Funding I | | | | | | | | |
5.125% due 06/10/14 (Þ) | | | 300 | | | | 324 | |
3.125% due 01/11/16 (Þ) | | | 950 | | | | 998 | |
3.875% due 04/11/22 (Å) | | | 1,900 | | | | 1,917 | |
MidAmerican Energy Co. | | | | | | | | |
5.800% due 10/15/36 | | | 300 | | | | 366 | |
Molson Coors Brewing Co. | | | | | | | | |
3.500% due 05/01/22 | | | 1,605 | | | | 1,619 | |
Morgan Stanley | | | | | | | | |
6.000% due 05/13/14 | | | 680 | | | | 707 | |
3.800% due 04/29/16 | | | 655 | | | | 640 | |
0.916% due 10/18/16 (Ê) | | | 2,195 | | | | 1,884 | |
5.550% due 04/27/17 | | | 410 | | | | 417 | |
6.250% due 08/28/17 | | | 300 | | | | 314 | |
6.625% due 04/01/18 | | | 3,705 | | | | 3,873 | |
5.625% due 09/23/19 | | | 1,015 | | | | 1,003 | |
5.500% due 07/24/20 | | | 1,025 | | | | 1,008 | |
Series GMTN | | | | | | | | |
3.006% due 05/14/13 (Ê) | | | 500 | | | | 501 | |
0.769% due 01/09/14 (Ê)(Ñ) | | | 1,500 | | | | 1,426 | |
5.450% due 01/09/17 | | | 600 | | | | 609 | |
Mosaic Co. (The) | | | | | | | | |
3.750% due 11/15/21 | | | 975 | | | | 1,015 | |
National City Bank | | | | | | | | |
Series BKNT | | | | | | | | |
0.845% due 06/07/17 (Ê) | | | 1,400 | | | | 1,314 | |
National Rural Utilities Cooperative Finance Corp. | | | | | | | | |
1.900% due 11/01/15 | | | 435 | | | | 448 | |
NBCUniversal Media LLC | | | | | | | | |
3.650% due 04/30/15 | | | 2,695 | | | | 2,882 | |
New Cingular Wireless Services, Inc. | | | | | | | | |
8.750% due 03/01/31 | | | 745 | | | | 1,108 | |
News America, Inc. | | | | | | | | |
8.250% due 10/17/96 | | | 65 | | | | 76 | |
Series WI | | | | | | | | |
6.150% due 02/15/41 | | | 1,025 | | | | 1,176 | |
Nisource Finance Corp. | | | | | | | | |
6.400% due 03/15/18 | | | 250 | | | | 295 | |
Ohio National Financial Services, Inc. | | | | | | | | |
6.375% due 04/30/20 (Þ) | | | 5,000 | | | | 5,551 | |
Oncor Electric Delivery Co. LLC | | | | | | | | |
5.950% due 09/01/13 | | | 760 | | | | 802 | |
6.800% due 09/01/18 | | | 1,350 | | | | 1,604 | |
Oracle Corp. | | | | | | | | |
5.750% due 04/15/18 | | | 1,150 | | | | 1,404 | |
Pacific Bell Telephone Co. | | | | | | | | |
7.375% due 07/15/43 | | | 680 | | | | 729 | |
Panhandle Eastern Pipeline Co., LP | | | | | | | | |
8.125% due 06/01/19 | | | 1,725 | | | | 2,130 | |
PepsiCo, Inc. | | | | | | | | |
4.000% due 03/05/42 | | | 570 | | | | 561 | |
Petrohawk Energy Corp. | | | | | | | | |
7.250% due 08/15/18 | | | 865 | | | | 986 | |
| | |
| Russell Investment Grade Bond Fund | | 285 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Philip Morris International, Inc. | | | | | | | | |
5.650% due 05/16/18 | | | 725 | | | | 867 | |
PNC Funding Corp. | | | | | | | | |
3.300% due 03/08/22 | | | 890 | | | | 900 | |
Prudential Financial, Inc. | | | | | | | | |
3.875% due 01/14/15 | | | 535 | | | | 564 | |
6.200% due 11/15/40 | | | 670 | | | | 749 | |
Prudential Holdings LLC | | | | | | | | |
8.695% due 12/18/23 (Þ) | | | 1,675 | | | | 2,107 | |
Public Service Co. of New Mexico | | | | | | | | |
7.950% due 05/15/18 | | | 675 | | | | 826 | |
Public Service Electric & Gas Co. | | | | | | | | |
5.300% due 05/01/18 | | | 800 | | | | 955 | |
Quest Diagnostics, Inc. | | | | | | | | |
3.200% due 04/01/16 | | | 70 | | | | 74 | |
Qwest Corp. | | | | | | | | |
6.750% due 12/01/21 (Ñ) | | | 770 | | | | 867 | |
Raytheon Co. | | | | | | | | |
3.125% due 10/15/20 | | | 385 | | | | 400 | |
Republic Services, Inc. | | | | | | | | |
5.250% due 11/15/21 | | | 820 | | | | 955 | |
6.200% due 03/01/40 | | | 340 | | | | 412 | |
Rockies Express Pipeline LLC | | | | | | | | |
6.850% due 07/15/18 (Ñ)(Þ) | | | 1,085 | | | | 1,061 | |
SABMiller Holdings, Inc. | | | | | | | | |
2.450% due 01/15/17 (Þ) | | | 1,950 | | | | 1,997 | |
4.950% due 01/15/42 (Ñ)(Þ) | | | 1,090 | | | | 1,159 | |
Simon Property Group, LP | | | | | | | | |
6.100% due 05/01/16 (Ñ) | | | 295 | | | | 338 | |
10.350% due 04/01/19 | | | 650 | | | | 902 | |
4.750% due 03/15/42 | | | 480 | | | | 471 | |
SLM Corp. | | | | | | | | |
8.450% due 06/15/18 | | | 1,000 | | | | 1,095 | |
Southern Copper Corp. | | | | | | | | |
6.375% due 07/27/15 | | | 435 | | | | 492 | |
5.375% due 04/16/20 (Ñ) | | | 375 | | | | 414 | |
Southwestern Electric Power Co. | | | | | | | | |
6.450% due 01/15/19 | | | 770 | | | | 923 | |
State Street Capital Trust IV | | | | | | | | |
1.474% due 06/15/37 (Ê) | | | 100 | | | | 74 | |
Stone Street Trust | | | | | | | | |
5.902% due 12/15/15 (Þ) | | | 900 | | | | 907 | |
TD Ameritrade Holding Corp. | | | | | | | | |
4.150% due 12/01/14 | | | 950 | | | | 1,015 | |
Tennessee Gas Pipeline Co. | | | | | | | | |
8.000% due 02/01/16 | | | 1,605 | | | | 1,871 | |
Texas-New Mexico Power Co. | | | | | | | | |
9.500% due 04/01/19 (Þ) | | | 800 | | | | 1,066 | |
Textron, Inc. | | | | | | | | |
6.200% due 03/15/15 | | | 680 | | | | 747 | |
Time Warner Cable, Inc. | | | | | | | | |
3.500% due 02/01/15 (Ñ) | | | 975 | | | | 1,032 | |
5.850% due 05/01/17 | | | 1,225 | | | | 1,435 | |
6.750% due 07/01/18 | | | 2,750 | | | | 3,357 | |
5.500% due 09/01/41 | | | 540 | | | | 569 | |
Time Warner, Inc. | | | | | | | | |
3.150% due 07/15/15 | | | 1,820 | | | | 1,926 | |
4.875% due 03/15/20 | | | 1,570 | | | | 1,758 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Timken Co. | | | | | | | | |
6.000% due 09/15/14 | | | 760 | | | | 828 | |
Toyota Motor Credit Corp. | | | | | | | | |
3.400% due 09/15/21 | | | 1,925 | | | | 2,014 | |
Union Electric Co. | | | | | | | | |
6.400% due 06/15/17 (Ñ) | | | 545 | | | | 659 | |
UnitedHealth Group, Inc. | | | | | | | | |
6.000% due 06/15/17 | | | 4 | | | | 5 | |
US Bancorp | | | | | | | | |
2.200% due 11/15/16 (Ñ) | | | 985 | | | | 1,014 | |
USB Capital IX | | | | | | | | |
3.500% due 10/29/49 (Ê)(ƒ) | | | 200 | | | | 152 | |
Valero Energy Corp. | | | | | | | | |
9.375% due 03/15/19 | | | 385 | | | | 509 | |
Ventas Realty, LP/Ventas Capital Corp. | | | | | | | | |
4.000% due 04/30/19 | | | 1,250 | | | | 1,271 | |
Verizon Communications, Inc. | | | | | | | | |
3.000% due 04/01/16 | | | 760 | | | | 810 | |
3.500% due 11/01/21 | | | 705 | | | | 738 | |
6.400% due 02/15/38 | | | 800 | | | | 1,001 | |
4.750% due 11/01/41 (Ñ) | | | 1,365 | | | | 1,432 | |
Viacom, Inc. | | | | | | | | |
2.500% due 12/15/16 | | | 740 | | | | 763 | |
Wachovia Corp. | | | | | | | | |
5.500% due 05/01/13 | | | 1,800 | | | | 1,884 | |
5.625% due 10/15/16 | | | 400 | | | | 450 | |
Wal-Mart Stores, Inc. | | | | | | | | |
6.500% due 08/15/37 | | | 1,400 | | | | 1,848 | |
5.000% due 10/25/40 (Ñ) | | | 1,038 | | | | 1,183 | |
Waste Management, Inc. | | | | | | | | |
4.750% due 06/30/20 | | | 1,045 | | | | 1,181 | |
WEA Finance LLC | | | | | | | | |
7.125% due 04/15/18 (Þ) | | | 2,400 | | | | 2,852 | |
WEA Finance LLC/WT Finance Aust Pty, Ltd. | | | | | | | | |
7.500% due 06/02/14 (Þ) | | | 1,070 | | | | 1,180 | |
6.750% due 09/02/19 (Þ) | | | 120 | | | | 140 | |
Wells Fargo & Co. | | | | | | | | |
3.625% due 04/15/15 | | | 2,740 | | | | 2,926 | |
3.500% due 03/08/22 | | | 905 | | | | 917 | |
Williams Cos., Inc. (The) | | | | | | | | |
7.750% due 06/15/31 | | | 526 | | | | 643 | |
WM Wrigley Jr Co. | | | | | | | | |
3.050% due 06/28/13 (Þ) | | | 5,000 | | | | 5,071 | |
Xerox Corp. | | | | | | | | |
4.500% due 05/15/21 (Ñ) | | | 1,955 | | | | 2,041 | |
Yum! Brands, Inc. | | | | | | | | |
4.250% due 09/15/15 | | | 435 | | | | 473 | |
ZFS Finance USA Trust II | | | | | | | | |
6.450% due 12/15/65 (Þ) | | | 3,710 | | | | 3,636 | |
| | | | | | | | |
| | | | | | | 325,037 | |
| | | | | | | | |
| | |
| International Debt - 6.9% | | | | | | | | |
Abbey National Treasury Services PLC | | | | | | | | |
1.602% due 06/10/13 (ž) | | | 3,500 | | | | 3,458 | |
2.875% due 04/25/14 | | | 775 | | | | 763 | |
3.875% due 11/10/14 (Þ) | | | 1,010 | | | | 1,007 | |
| | | | |
| | 286 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
AK Transneft OJSC Via TransCapitalInvest, Ltd. | | | | | | | | |
8.700% due 08/07/18 (Þ) | | | 200 | | | | 247 | |
Series REGS | | | | | | | | |
8.700% due 08/07/18 | | | 200 | | | | 247 | |
ANZ National International, Ltd. | | | | | | | | |
6.200% due 07/19/13 (Þ) | | | 1,600 | | | | 1,688 | |
ArcelorMittal | | | | | | | | |
4.500% due 02/25/17 | | | 1,125 | | | | 1,133 | |
5.250% due 08/05/20 (Ñ) | | | 1,930 | | | | 1,905 | |
6.250% due 02/25/22 (Ñ) | | | 805 | | | | 820 | |
AstraZeneca PLC | | | | | | | | |
5.900% due 09/15/17 | | | 300 | | | | 361 | |
Australia & New Zealand Banking Group, Ltd. | | | | | | | | |
1.373% due 05/08/13 (Å)(Ê) | | | 700 | | | | 700 | |
Banco Santander Brasil SA | | | | | | | | |
2.574% due 03/18/14 (Ê)(Þ) | | | 900 | | | | 894 | |
4.500% due 04/06/15 (Þ) | | | 100 | | | | 100 | |
4.250% due 01/14/16 (Þ) | | | 500 | | | | 490 | |
Banco Santander Chile | | | | | | | | |
2.066% due 01/19/16 (Ê)(Þ) | | | 1,000 | | | | 955 | |
Bank of China Hong Kong, Ltd. | | | | | | | | |
5.550% due 02/11/20 (Þ) | | | 100 | | | | 107 | |
Bank of Montreal | | | | | | | | |
2.850% due 06/09/15 (Þ) | | | 300 | | | | 317 | |
2.500% due 01/11/17 (Ñ) | | | 850 | | | | 873 | |
Banque Centrale de Tunisie SA | | | | | | | | |
8.250% due 09/19/27 | | | 550 | | | | 652 | |
Banque PSA Finance SA | | | | | | | | |
Series 144a | | | | | | | | |
2.368% due 04/04/14 (Ê)(Þ) | | | 700 | | | | 676 | |
Barclays Bank PLC | | | | | | | | |
2.750% due 02/23/15 | | | 1,335 | | | | 1,346 | |
BBVA Bancomer SA | | | | | | | | |
4.500% due 03/10/16 (Þ) | | | 200 | | | | 200 | |
6.500% due 03/10/21 (Þ) | | | 400 | | | | 404 | |
BHP Billiton Finance USA, Ltd. | | | | | | | | |
3.250% due 11/21/21 | | | 1,285 | | | | 1,329 | |
4.125% due 02/24/42 | | | 1,065 | | | | 1,043 | |
BNP Paribas SA | | | | | | | | |
5.186% due 06/29/49 (ƒ)(Þ) | | | 1,900 | | | | 1,568 | |
Series BKNT | | | | | | | | |
1.369% due 01/10/14 (Ê) | | | 1,200 | | | | 1,173 | |
BP Capital Markets PLC | | | | | | | | |
5.250% due 11/07/13 | | | 650 | | | | 692 | |
2.248% due 11/01/16 | | | 895 | | | | 921 | |
Braskem Finance, Ltd. | | | | | | | | |
5.750% due 04/15/21 (Þ) | | | 300 | | | | 312 | |
Caisse Centrale Desjardins du Quebec | | | | | | | | |
2.650% due 09/16/15 (Þ) | | | 1,500 | | | | 1,551 | |
Cenovus Energy, Inc. | | | | | | | | |
4.500% due 09/15/14 | | | 435 | | | | 470 | |
Commonwealth Bank of Australia NY | | | | | | | | |
1.950% due 03/16/15 (Ñ) | | | 1,750 | | | | 1,767 | |
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrect | | | | | | | | |
3.875% due 02/08/22 | | | 975 | | | | 963 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Corp. Andina de Fomento | | | | | | | | |
8.125% due 06/04/19 | | | 435 | | | | 544 | |
Corp. Nacional del Cobre de Chile | | | | | | | | |
7.500% due 01/15/19 (Þ) | | | 400 | | | | 508 | |
6.150% due 10/24/36 (Þ) | | | 100 | | | | 123 | |
Credit Suisse NY | | | | | | | | |
5.000% due 05/15/13 | | | 1,000 | | | | 1,038 | |
5.500% due 05/01/14 | | | 500 | | | | 537 | |
6.000% due 02/15/18 (Ñ) | | | 500 | | | | 540 | |
Deutsche Telekom International Finance BV | | | | | | | | |
2.250% due 03/06/17 (Þ) | | | 1,265 | | | | 1,256 | |
Dexia Credit Local SA | | | | | | | | |
0.946% due 04/29/14 (Ê)(Þ) | | | 1,700 | | | | 1,588 | |
Electricite de France SA | | | | | | | | |
5.500% due 01/26/14 (Ñ)(Þ) | | | 400 | | | | 427 | |
6.950% due 01/26/39 (Þ) | | | 300 | | | | 356 | |
Encana Corp. | | | | | | | | |
3.900% due 11/15/21 (Ñ) | | | 695 | | | | 684 | |
European Investment Bank | | | | | | | | |
2.375% due 03/14/14 (Ñ) | | | 825 | | | | 849 | |
Export-Import Bank of China | | | | | | | | |
4.875% due 07/21/15 (��) | | | 200 | | | | 217 | |
Export-Import Bank of Korea | | | | | | | | |
4.000% due 01/29/21 (Ñ) | | | 500 | | | | 499 | |
FIH Erhvervsbank A/S | | | | | | | | |
0.844% due 06/13/13 (Ê) | | | 5,900 | | | | 5,901 | |
France Telecom SA | | | | | | | | |
5.375% due 01/13/42 | | | 590 | | | | 600 | |
Gazprom OAO Via Gaz Capital SA | | | | | | | | |
6.212% due 11/22/16 (Þ) | | | 100 | | | | 109 | |
8.146% due 04/11/18 (Þ) | | | 500 | | | | 590 | |
Gazprom OAO Via Gazprom International SA | | | | | | | | |
Series REGS | | | | | | | | |
7.201% due 02/01/20 | | | 39 | | | | 43 | |
Gazprom OAO Via White Nights Finance BV | | | | | | | | |
Series REGS | | | | | | | | |
10.500% due 03/08/14 | | | 200 | | | | 227 | |
10.500% due 03/25/14 | | | 200 | | | | 228 | |
General Electric Capital Corp. | | | | | | | | |
5.500% due 09/15/67 (Þ) | | | 300 | | | | 340 | |
Gerdau Trade, Inc. | | | | | | | | |
5.750% due 01/30/21 (Þ) | | | 100 | | | | 106 | |
Glitnir Banki HF | | | | | | | | |
6.693% due 06/15/16 (Ø)(Þ) | | | 700 | | | | — | |
Goldman Sachs Group, Inc. (The) | | | | | | | | |
6.125% due 02/14/17 | | | 100 | | | | 170 | |
Government of the Cayman Islands | | | | | | | | |
5.950% due 11/24/19 (Þ) | | | 700 | | | | 762 | |
Granite Master Issuer PLC | | | | | | | | |
Series 2006-3 Class A7 | | | | | | | | |
0.340% due 12/20/54 (Ê) | | | 230 | | | | 221 | |
HBOS PLC | | | | | | | | |
Series GMTN | | | | | | | | |
6.750% due 05/21/18 (Þ) | | | 2,425 | | | | 2,228 | |
| | |
| Russell Investment Grade Bond Fund | | 287 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Hillmark Funding | | | | | | | | |
Series 2006-1A Class A1 | | | | | | | | |
0.743% due 05/21/21 (Ê)(Þ) | | | 1,400 | | | | 1,317 | |
HSBC Bank PLC | | | | | | | | |
3.100% due 05/24/16 (Þ) | | | 1,500 | | | | 1,554 | |
HSBC Holdings PLC | | | | | | | | |
5.100% due 04/05/21 | | | 580 | | | | 639 | |
6.500% due 05/02/36 | | | 500 | | | | 551 | |
6.500% due 09/15/37 | | | 500 | | | | 555 | |
Husky Energy, Inc. | | | | | | | | |
5.900% due 06/15/14 | | | 460 | | | | 505 | |
Hutchison Whampoa International 11, Ltd. | | | | | | | | |
3.500% due 01/13/17 (Þ) | | | 1,190 | | | | 1,226 | |
Indian Oil Corp., Ltd. | | | | | | | | |
4.750% due 01/22/15 | | | 200 | | | | 205 | |
ING Bank NV | | | | | | | | |
1.875% due 06/09/14 (Ê)(Þ) | | | 400 | | | | 396 | |
Ingersoll-Rand Global Holding Co., Ltd. | | | | | | | | |
9.500% due 04/15/14 | | | 565 | | | | 649 | |
Intesa Sanpaolo SpA | | | | | | | | |
2.892% due 02/24/14 (Ê)(Þ) | | | 700 | | | | 681 | |
IPIC GMTN, Ltd. | | | | | | | | |
5.000% due 11/15/20 (Þ) | | | 300 | | | | 311 | |
5.500% due 03/01/22 (Þ) | | | 290 | | | | 303 | |
Itau Unibanco Holding SA | | | | | | | | |
6.200% due 04/15/20 (Ñ)(Þ) | | | 1,800 | | | | 1,908 | |
Kaupthing Bank Hf | | | | | | | | |
7.625% due 02/28/15 (Ø)(Þ) | | | 1,210 | | | | 309 | |
7.125% due 05/19/16 (Ø)(Þ) | | | 1,480 | | | | — | |
Koninklijke Philips Electronics NV | | | | | | | | |
3.750% due 03/15/22 | | | 1,280 | | | | 1,319 | |
Korea Development Bank (The) | | | | | | | | |
3.500% due 08/22/17 (Ñ) | | | 1,000 | | | | 1,020 | |
Korea Electric Power Corp. | | | | | | | | |
3.000% due 10/05/15 (Þ) | | | 1,200 | | | | 1,217 | |
5.125% due 04/23/34 (Þ) | | | 155 | | | | 159 | |
Korea Hydro & Nuclear Power Co., Ltd. | | | | | | | | |
3.125% due 09/16/15 (Þ) | | | 600 | | | | 611 | |
LBG Capital No. 1 PLC | | | | | | | | |
8.500% due 12/29/49 (ƒ)(Þ) | | | 200 | | | | 184 | |
Lloyds TSB Bank PLC | | | | | | | | |
4.200% due 03/28/17 (Ñ) | | | 660 | | | | 670 | |
Morgan Stanley | | | | | | | | |
Series GMTN | | | | | | | | |
1.177% due 01/16/17 (Ê) | | | 1,900 | | | | 2,126 | |
National Australia Bank | | | | | | | | |
2.750% due 03/09/17 (Ñ) | | | 1,275 | | | | 1,276 | |
National Australia Bank, Ltd. | | | | | | | | |
5.350% due 06/12/13 (Þ) | | | 600 | | | | 629 | |
1.189% due 04/11/14 (Ê)(Þ) | | | 2,500 | | | | 2,503 | |
Nexen, Inc. | | | | | | | | |
7.500% due 07/30/39 | | | 435 | | | | 533 | |
Noble Group, Ltd. | | | | | | | | |
6.750% due 01/29/20 (Þ) | | | 200 | | | | 196 | |
Series REGS | | | | | | | | |
6.750% due 01/29/20 | | | 1,200 | | | | 1,176 | |
Nokia OYJ | | | | | | | | |
5.375% due 05/15/19 (Ñ) | | | 435 | | | | 381 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Novatek Finance, Ltd. | | | | | | | | |
5.326% due 02/03/16 (Þ) | | | 200 | | | | 208 | |
Pernod-Ricard SA | | | | | | | | |
2.950% due 01/15/17 (Þ) | | | 1,515 | | | | 1,541 | |
4.450% due 01/15/22 (Þ) | | | 675 | | | | 700 | |
5.500% due 01/15/42 (Þ) | | | 435 | | | | 445 | |
Petrobras International Finance Co. - Pifco | | | | | | | | |
3.875% due 01/27/16 | | | 1,900 | | | | 1,989 | |
3.500% due 02/06/17 | | | 2,700 | | | | 2,775 | |
5.750% due 01/20/20 | | | 1,200 | | | | 1,339 | |
Petroleos Mexicanos | | | | | | | | |
6.000% due 03/05/20 | | | 400 | | | | 459 | |
4.875% due 01/24/22 (Ñ)(Þ) | | | 540 | | | | 576 | |
Province of Ontario Canada | | | | | | | | |
3.000% due 07/16/18 | | | 100 | | | | 107 | |
Province of Quebec Canada | | | | | | | | |
3.500% due 07/29/20 | | | 500 | | | | 546 | |
2.750% due 08/25/21 | | | 1,000 | | | | 1,017 | |
Qatar Government International Bond | | | | | | | | |
3.125% due 01/20/17 (Þ) | | | 435 | | | | 449 | |
Qtel International Finance, Ltd. | | | | | | | | |
5.000% due 10/19/25 (Þ) | | | 795 | | | | 813 | |
Rabobank Nederland NV | | | | | | | | |
11.000% due 06/29/49 (ƒ)(Þ) | | | 1,200 | | | | 1,524 | |
Ras Laffan Liquefied Natural Gas Co., Ltd. II
Series REGS
5.298% due 09/30/20 | | | 252 | | | | 272 | |
Ras Laffan Liquefied Natural Gas Co., Ltd. III
5.838% due 09/30/27 (Þ) | | | 250 | | | | 268 | |
Series REGS
5.832% due 09/30/16 (Å) | | | 924 | | | | 994 | |
Resona Bank, Ltd. | | | | | | | | |
5.850% due 09/29/49 (ƒ)(Ñ)(Þ) | | | 100 | | | | 104 | |
Rio Tinto Finance USA PLC | | | | | | | | |
3.500% due 03/22/22 | | | 1,095 | | | | 1,140 | |
Rio Tinto Finance USA, Ltd. | | | | | | | | |
3.500% due 11/02/20 | | | 1,615 | | | | 1,676 | |
Royal Bank of Scotland Group PLC
Series 1
9.118% due 03/31/49 (ƒ) | | | 200 | | | | 174 | |
Royal Bank of Scotland PLC (The) | | | | | | | | |
3.250% due 01/11/14 | | | 1,255 | | | | 1,262 | |
Russian Foreign Bond - Eurobond
Series REGS
3.625% due 04/29/15 | | | 100 | | | | 104 | |
Sigma Alimentos SA de CV | | | | | | | | |
5.625% due 04/14/18 (Þ) | | | 435 | | | | 461 | |
SLM Corp. | | | | | | | | |
1.206% due 06/17/13 (Ê) | | | 650 | | | | 835 | |
SMART Trust
Series 2011-2USA Class A4A
2.310% due 04/14/17 (Þ) | | | 1,545 | | | | 1,567 | |
Series 2012-1USA Class A4A
2.010% due 12/14/17 (Þ) | | | 2,900 | | | | 2,895 | |
Societe Generale SA | | | | | | | | |
1.519% due 04/11/14 (Ê)(Þ) | | | 2,700 | | | | 2,577 | |
| | | | |
| | 288 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Suncor Energy, Inc. | | | | | | | | |
5.950% due 12/01/34 | | | 435 | | | | 505 | |
Sydney Airport Finance Co. Pty, Ltd. | | | | | | | | |
5.125% due 02/22/21 (Þ) | | | 100 | | | | 103 | |
Telecom Italia Capital SA | | | | | | | | |
5.250% due 10/01/15 | | | 400 | | | | 407 | |
Telefonica Emisiones SAU | | | | | | | | |
3.992% due 02/16/16 | | | 1,350 | | | | 1,305 | |
Telefonos de Mexico SAB de CV | | | | | | | | |
5.500% due 01/27/15 | | | 865 | | | | 948 | |
Temasek Financial I, Ltd. | | | | | | | | |
4.300% due 10/25/19 (Þ) | | | 300 | | | | 333 | |
TNK-BP Finance SA
Series REGS
6.625% due 03/20/17 | | | 400 | | | | 442 | |
7.875% due 03/13/18 | | | 1,600 | | | | 1,860 | |
Total Capital SA | | | | | | | | |
4.450% due 06/24/20 (Ñ) | | | 1,225 | | | | 1,376 | |
Transocean, Inc. | | | | | | | | |
5.050% due 12/15/16 | | | 975 | | | | 1,059 | |
6.375% due 12/15/21 | | | 540 | | | | 632 | |
7.350% due 12/15/41 | | | 865 | | | | 1,060 | |
Tyco Electronics Group SA | | | | | | | | |
6.550% due 10/01/17 | | | 865 | | | | 1,034 | |
Vale Overseas, Ltd. | | | | | | | | |
6.250% due 01/23/17 | | | 100 | | | | 115 | |
4.625% due 09/15/20 | | | 785 | | | | 832 | |
6.875% due 11/21/36 | | | 100 | | | | 119 | |
6.875% due 11/10/39 | | | 200 | | | | 240 | |
Virgin Media Secured Finance PLC | | | | | | | | |
6.500% due 01/15/18 | | | 865 | | | | 943 | |
Vnesheconombank Via VEB Finance PLC | | | | | | | | |
5.375% due 02/13/17 (Å) | | | 1,300 | | | | 1,355 | |
Vodafone Group PLC | | | | | | | | |
4.150% due 06/10/14 | | | 295 | | | | 315 | |
Volkswagen International Finance NV | | | | | | | | |
1.625% due 03/22/15 (Þ) | | | 1,625 | | | | 1,630 | |
Volvo Treasury AB | | | | | | | | |
5.950% due 04/01/15 (Þ) | | | 1,085 | | | | 1,193 | |
Westpac Banking Corp. | | | | | | | | |
3.585% due 08/14/14 (Þ) | | | 2,000 | | | | 2,113 | |
Willis Group Holdings PLC | | | | | | | | |
4.125% due 03/15/16 | | | 905 | | | | 948 | |
Woolworths, Ltd. | | | | | | | | |
2.550% due 09/22/15 (Þ) | | | 1,655 | | | | 1,688 | |
| | | | | | | | |
| | | | | | | 128,304 | |
| | | | | | | | |
|
| Mortgage-Backed Securities - 40.1% | |
American Home Mortgage Investment Trust
Series 2004-4 Class 4A
2.239% due 02/25/45 (Ê) | | | 125 | | | | 102 | |
Series 2005-4 Class 1A1
0.529% due 11/25/45 (Ê) | | | 501 | | | | 330 | |
Banc of America Alternative Loan Trust
Series 2006-5 Class CB17
6.000% due 06/25/46 | | | 478 | | | | 334 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Banc of America Funding Corp.
Series 2005-5 Class 1A11
5.500% due 09/25/35 | | | 391 | | | | 395 | |
Series 2005-D Class A1
2.653% due 05/25/35 (Ê) | | | 203 | | | | 202 | |
Series 2006-G Class 2A3
0.410% due 07/20/36 (Ê) | | | 1,402 | | | | 1,365 | |
Series 2007-E Class 4A1
4.942% due 07/20/47 (Ê) | | | 535 | | | | 362 | |
Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2003-1 Class SBE
6.770% due 03/11/32 (Þ) | | | 176 | | | | 183 | |
Series 2005-2 Class A4 4.783% due 07/10/43 | | | 26 | | | | 26 | |
Series 2005-2 Class A5 4.857% due 07/10/43 | | | 1,690 | | | | 1,850 | |
Series 2006-1 Class A4 5.372% due 09/10/45 | | | 910 | | | | 1,017 | |
Series 2006-2 Class A4 5.921% due 05/10/45 | | | 230 | | | | 262 | |
Series 2006-3 Class A4
5.889% due 07/10/44 | | | 1,330 | | | | 1,502 | |
Series 2006-4 Class A4
5.634% due 07/10/46 | | | 160 | | | | 181 | |
Series 2006-6 Class A4
5.356% due 10/10/45 | | | 2,575 | | | | 2,839 | |
Series 2007-1 Class A4
5.451% due 01/15/49 | | | 1,000 | | | | 1,127 | |
Series 2007-2 Class AAB
5.768% due 04/10/49 | | | 990 | | | | 1,054 | |
Series 2008-1 Class A4
6.395% due 02/10/51 | | | 1,250 | | | | 1,464 | |
Banc of America Mortgage Securities, Inc.
Series 2004-1 Class 5A1
6.500% due 09/25/33 | | | 17 | | | | 18 | |
Series 2004-2 Class 5A1
6.500% due 10/25/31 | | | 18 | | | | 19 | |
Series 2004-11 Class 2A1
5.750% due 01/25/35 | | | 320 | | | | 328 | |
Series 2005-H Class 2A5
2.762% due 09/25/35 (Ê) | | | 575 | | | | 428 | |
Series 2006-2 Class A15
6.000% due 07/25/46 | | | 48 | | | | 46 | |
Series 2006-B Class 1A1
2.683% due 10/20/46 (Ê) | | | 139 | | | | 65 | |
Bear Stearns Adjustable Rate Mortgage Trust
Series 2002-11 Class 1A1
5.710% due 02/25/33 (Ê) | | | 6 | | | | 6 | |
Series 2004-8 Class 2A1
2.836% due 11/25/34 (Ê) | | | 395 | | | | 334 | |
Series 2004-9 Class 22A1
3.207% due 11/25/34 (Ê) | | | 102 | | | | 101 | |
Series 2004-10 Class 22A1
2.814% due 01/25/35 (Ê) | | | 96 | | | | 84 | |
Series 2005-2 Class A1
2.620% due 03/25/35 (Ê) | | | 1,453 | | | | 1,407 | |
| | |
| Russell Investment Grade Bond Fund | | 289 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2005-12 Class 13A1
5.353% due 02/25/36 (Ê) | | | 84 | | | | 73 | |
Bear Stearns Alt-A Trust
Series 2004-13 Class A1
0.979% due 11/25/34 (Ê) | | | 1,746 | | | | 1,648 | |
Series 2005-4 Class 23A1
2.817% due 05/25/35 (Ê) | | | 333 | | | | 262 | |
Series 2005-7 Class 22A1
2.824% due 09/25/35 (Ê) | | | 215 | | | | 147 | |
Bear Stearns Commercial Mortgage Securities
Series 2005-PWR7 Class A3
5.116% due 02/11/41 | | | 1,730 | | | | 1,880 | |
Series 2005-T20 Class A4A
5.299% due 10/12/42 | | | 1,965 | | | | 2,191 | |
Series 2006-PW14 Class A4
5.201% due 12/11/38 | | | 4,500 | | | | 5,058 | |
Series 2006-T22 Class A4
5.714% due 04/12/38 | | | 1,115 | | | | 1,251 | |
Series 2007-PW15 Class A4
5.331% due 02/11/44 | | | 1,250 | | | | 1,338 | |
Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
2.763% due 01/26/36 (Ê) | | | 352 | | | | 209 | |
Series 2007-R6 Class 2A1
2.836% due 12/26/46 (Ê) | | | 175 | | | | 98 | |
Chase Mortgage Finance Corp.
Series 2005-A1 Class 2A2
2.805% due 12/25/35 (Ê) | | | 131 | | | | 124 | |
Series 2006-S4 Class A3
6.000% due 12/25/36 | | | 203 | | | | 200 | |
Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
5.431% due 10/15/49 | | | 1,225 | | | | 1,391 | |
Series 2007-C6 Class A4
5.885% due 12/10/49 | | | 665 | | | | 764 | |
Citigroup Mortgage Loan Trust, Inc.
Series 2005-3 Class 2A2B
2.680% due 08/25/35 (Ê) | | | 364 | | | | 189 | |
Series 2005-11 Class A2A
2.580% due 10/25/35 (Ê) | | | 207 | | | | 184 | |
Series 2007-AR8 Class 2A1A
5.003% due 07/25/37 (Ê) | | | 324 | | | | 211 | |
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.400% due 07/15/44 | | | 765 | | | | 853 | |
Commercial Mortgage Asset Trust
Series 1999-C1 Class A4
6.975% due 01/17/32 | | | 595 | | | | 616 | |
Commercial Mortgage Pass Through Certificates
Series 2003-LB1A Class A2
4.084% due 06/10/38 | | | 2,000 | | | | 2,045 | |
Series 2007-C9 Class A4
6.006% due 12/10/49 | | | 330 | | | | 382 | |
Countrywide Alternative Loan Trust
Series 2005-J8 Class 1A3
5.500% due 07/25/35 | | | 469 | | | | 411 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2007-OA6 Class A1B
0.439% due 06/25/37 (Ê) | | | 472 | | | | 310 | |
Series 2007-OA7 Class A1A
0.419% due 05/25/47 (Ê) | | | 480 | | | | 283 | |
Countrywide Home Loan Mortgage Pass Through Trust
Series 2004-22 Class A3
2.620% due 11/25/34 (Ê) | | | 261 | | | | 215 | |
Series 2004-HYB9 Class 1A1
2.661% due 02/20/35 (Ê) | | | 561 | | | | 459 | |
Series 2005-3 Class 1A2
0.529% due 04/25/35 (Ê) | | | 823 | | | | 531 | |
Series 2005-9 Class 1A1
0.539% due 05/25/35 (Ê) | | | 2,380 | | | | 1,614 | |
Series 2005-HYB9 Class 3A2A
2.595% due 02/20/36 (Ê) | | | 84 | | | | 61 | |
Series 2006-HYB3 Class 2A1A
2.929% due 05/20/36 (Ê) | | | 443 | | | | 277 | |
Credit Suisse First Boston Mortgage Securities Corp.
Series 2001-CP4 Class D
6.610% due 12/15/35 | | | 645 | | | | 648 | |
Series 2003-C3 Class C
4.082% due 05/15/38 | | | 950 | | | | 963 | |
Series 2003-C5 Class D
5.116% due 12/15/36 | | | 680 | | | | 688 | |
Series 2005-9 Class 2A1
5.500% due 10/25/35 | | | 786 | | | | 701 | |
Series 2005-C4 Class A3
5.120% due 08/15/38 | | | 826 | | | | 825 | |
Credit Suisse Mortgage Capital Certificates
Series 2006-C4 Class A3
5.467% due 09/15/39 | | | 1,350 | | | | 1,488 | |
Series 2006-C5 Class A3
5.311% due 12/15/39 | | | 750 | | | | 834 | |
Series 2007-C1 Class A3
5.383% due 02/15/40 | | | 2,500 | | | | 2,605 | |
Series 2007-C3 Class A4
5.867% due 06/15/39 | | | 2,400 | | | | 2,605 | |
Series 2007-C5 Class A3
5.694% due 09/15/40 | | | 545 | | | | 577 | |
Series 2007-C5 Class A4
5.695% due 09/15/40 | | | 1,200 | | | | 1,314 | |
Series 2008-C1 Class A3
6.408% due 02/15/41 | | | 1,570 | | | | 1,765 | |
CW Capital Cobalt, Ltd.
Series 2007-C3 Class A4
6.010% due 05/15/46 | | | 1,700 | | | | 1,871 | |
DBRR Trust
Series 2011-LC2 Class A4A
4.537% due 07/12/44 (Þ) | | | 690 | | | | 776 | |
Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2005-AR1 Class 2A3
2.036% due 08/25/35 (Ê) | | | 1,060 | | | | 610 | |
| | | | |
| | 290 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Downey Savings & Loan Association Mortgage Loan Trust
Series 2004-AR3 Class 1A1B
2.498% due 07/19/44 (Ê) | | | 86 | | | | 70 | |
Series 2005-AR6 Class 2A1A
0.530% due 10/19/45 (Ê) | | | 478 | | | | 315 | |
Fannie Mae
5.500% due 2013 | | | 4 | | | | 5 | |
6.500% due 2013 | | | 5 | | | | 6 | |
5.500% due 2015 | | | 364 | | | | 398 | |
6.500% due 2015 | | | 3 | | | | 3 | |
7.000% due 2015 | | | 2 | | | | 2 | |
5.500% due 2016 | | | 189 | | | | 206 | |
6.000% due 2016 | | | 12 | | | | 14 | |
6.500% due 2016 | | | 36 | | | | 40 | |
5.000% due 2017 | | | 152 | | | | 163 | |
5.500% due 2017 | | | 299 | | | | 327 | |
6.000% due 2017 | | | 446 | | | | 488 | |
6.500% due 2017 | | | 84 | | | | 94 | |
7.500% due 2017 | | | — | | | | — | |
8.500% due 2017 | | | 1 | | | | 1 | |
5.000% due 2018 | | | 354 | | | | 385 | |
5.500% due 2018 | | | 707 | | | | 777 | |
6.500% due 2018 | | | 104 | | | | 118 | |
5.000% due 2019 | | | 655 | | | | 712 | |
6.500% due 2019 | | | 53 | | | | 60 | |
3.500% due 2020 | | | 875 | | | | 921 | |
3.975% due 2020 | | | 1,666 | | | | 1,838 | |
4.000% due 2020 | | | 299 | | | | 320 | |
4.399% due 2020 | | | 1,160 | | | | 1,304 | |
4.671% due 2020 | | | 1,592 | | | | 1,811 | |
4.761% due 2020 | | | 1,572 | | | | 1,791 | |
5.000% due 2020 | | | 322 | | | | 350 | |
5.500% due 2020 | | | 2,247 | | | | 2,463 | |
6.500% due 2020 | | | 22 | | | | 25 | |
4.000% due 2021 | | | 132 | | | | 141 | |
4.303% due 2021 | | | 1,150 | | | | 1,294 | |
5.500% due 2021 | | | 1,166 | | | | 1,275 | |
4.500% due 2022 | | | 219 | | | | 236 | |
5.000% due 2022 | | | 277 | | | | 301 | |
5.500% due 2022 | | | 117 | | | | 128 | |
4.500% due 2023 | | | 1,397 | | | | 1,502 | |
5.000% due 2023 | | | 689 | | | | 748 | |
4.000% due 2024 | | | 130 | | | | 139 | |
4.500% due 2024 | | | 1,513 | | | | 1,626 | |
5.000% due 2024 | | | 90 | | | | 97 | |
5.500% due 2024 | | | 454 | | | | 497 | |
8.000% due 2024 | | | 48 | | | | 57 | |
8.500% due 2024 | | | 7 | | | | 7 | |
9.000% due 2024 | | | 3 | | | | 3 | |
3.500% due 2025 | | | 45 | | | | 48 | |
4.000% due 2025 | | | 1,757 | | | | 1,870 | |
4.500% due 2025 | | | 5,595 | | | | 6,086 | |
7.000% due 2025 | | | 7 | | | | 9 | |
8.000% due 2025 | | | 1 | | | | 1 | |
8.500% due 2025 | | | 17 | | | | 18 | |
3.500% due 2026 | | | 6,067 | | | | 6,481 | |
4.000% due 2026 | | | 2,163 | | | | 2,307 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
4.500% due 2026 | | | 132 | | | | 143 | |
6.000% due 2026 | | | 111 | | | | 123 | |
7.000% due 2026 | | | 16 | | | | 19 | |
9.000% due 2026 | | | 4 | | | | 5 | |
3.500% due 2027 | | | 224 | | | | 237 | |
7.000% due 2027 | | | 2 | | | | 2 | |
9.000% due 2027 | | | 1 | | | | 1 | |
6.500% due 2028 | | | 88 | | | | 102 | |
6.500% due 2029 | | | 525 | | | | 604 | |
8.000% due 2030 | | | 63 | | | | 78 | |
6.500% due 2031 | | | 21 | | | | 24 | |
8.000% due 2031 | | | 55 | | | | 66 | |
6.000% due 2032 | | | 72 | | | | 80 | |
6.500% due 2032 | | | 676 | | | | 776 | |
8.000% due 2032 | | | 3 | | | | 4 | |
4.500% due 2033 | | | 2,878 | | | | 3,139 | |
5.000% due 2033 | | | 918 | | | | 999 | |
5.500% due 2033 | | | 1,163 | | | | 1,283 | |
6.000% due 2033 | | | 106 | | | | 119 | |
6.500% due 2033 | | | 202 | | | | 232 | |
4.500% due 2034 | | | 36 | | | | 39 | |
5.000% due 2034 | | | 956 | | | | 1,040 | |
5.500% due 2034 | | | 2,505 | | | | 2,762 | |
6.000% due 2034 | | | 766 | | | | 858 | |
6.500% due 2034 | | | 429 | | | | 490 | |
2.173% due 2035 (Ê) | | | 115 | | | | 121 | |
2.371% due 2035 (Ê) | | | 254 | | | | 269 | |
4.500% due 2035 | | | 239 | | | | 256 | |
5.000% due 2035 | | | 4,396 | | | | 4,780 | |
5.500% due 2035 | | | 415 | | | | 457 | |
6.000% due 2035 | | | 1,334 | | | | 1,494 | |
5.000% due 2036 | | | 1,482 | | | | 1,611 | |
5.500% due 2036 | | | 4,795 | | | | 5,266 | |
6.000% due 2036 | | | 1,680 | | | | 1,868 | |
6.500% due 2036 | | | 710 | | | | 802 | |
5.500% due 2037 | | | 1,628 | | | | 1,782 | |
6.000% due 2037 | | | 4,694 | | | | 5,208 | |
6.500% due 2037 | | | 737 | | | | 832 | |
5.000% due 2038 | | | 1,345 | | | | 1,462 | |
5.500% due 2038 | | | 2,374 | | | | 2,604 | |
6.000% due 2038 | | | 2,058 | | | | 2,282 | |
6.500% due 2038 | | | 828 | | | | 934 | |
4.500% due 2039 | | | 1,483 | | | | 1,589 | |
5.500% due 2039 | | | 1,341 | | | | 1,468 | |
6.500% due 2039 | | | 199 | | | | 225 | |
4.000% due 2040 | | | 408 | | | | 434 | |
4.500% due 2040 | | | 3,268 | | | | 3,507 | |
5.000% due 2040 | | | 1,613 | | | | 1,760 | |
3.500% due 2041 | | | 1,903 | | | | 1,986 | |
4.000% due 2041 | | | 5,680 | | | | 6,016 | |
4.500% due 2041 | | | 5,254 | | | | 5,641 | |
1.369% due 2044 (Ê) | | | 69 | | | | 70 | |
15 Year TBA (Ï)
2.500% | | | 3,965 | | | | 4,058 | |
3.000% | | | 53,595 | | | | 55,923 | |
3.500% | | | 25,855 | | | | 27,277 | |
4.000% | | | 3,515 | | | | 3,738 | |
| | |
| Russell Investment Grade Bond Fund | | 291 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
30 Year TBA (Ï)
3.500% | | | 125,325 | | | | 129,864 | |
4.000% | | | 27,850 | | | | 29,456 | |
4.500% | | | 26,665 | | | | 28,548 | |
5.000% | | | 15,335 | | | | 16,653 | |
5.500% | | | 10,290 | | | | 11,242 | |
6.000% | | | 3,105 | | | | 3,429 | |
4.500% due 06/01/41 | | | 343 | | | | 368 | |
Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33 | | | 395 | | | | 55 | |
Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18 | | | 692 | | | | 48 | |
Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19 | | | 759 | | | | 53 | |
Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35 | | | 1,079 | | | | 150 | |
Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36 | | | 249 | | | | 34 | |
Fannie Mae Grantor Trust
Series 2002-T5 Class A1
0.479% due 05/25/32 (Ê) | | | 357 | | | | 342 | |
Fannie Mae REMICS
Series 1992-158 Class ZZ
7.750% due 08/25/22 | | | 94 | | | | 108 | |
Series 1999-56 Class Z
7.000% due 12/18/29 | | | 179 | | | | 210 | |
Series 2003-32 Class FH
0.639% due 11/25/22 (Ê) | | | 46 | | | | 46 | |
Series 2003-35 Class FY
0.639% due 05/25/18 (Ê) | | | 362 | | | | 364 | |
Series 2005-117 Class LC
5.500% due 11/25/35 | | | 1,869 | | | | 2,049 | |
Series 2006-5 Class 3A2
2.546% due 05/25/35 (Ê) | | | 35 | | | | 37 | |
Series 2007-30 Class AF
0.549% due 04/25/37 (Ê) | | | 325 | | | | 324 | |
Series 2007-73 Class A1
0.299% due 07/25/37 (Ê) | | | 231 | | | | 221 | |
Series 2009-70 Class PS
Interest Only STRIP
6.511% due 01/25/37 (Ê) | | | 7,795 | | | | 1,274 | |
Series 2009-96 Class DB
4.000% due 11/25/29 | | | 1,250 | | | | 1,358 | |
Series 2010-112 Class PI
Interest Only STRIP
6.000% due 10/25/40 | | | 5,463 | | | | 919 | |
Series 2011-127 Class FA
0.689% due 12/25/41 (Ê) | | | 635 | | | | 636 | |
Fannie Mae Whole Loan
Series 2003-W1 Class 1A1
6.259% due 12/25/42 | | | 38 | | | | 44 | |
Series 2004-W2 Class 5AF
0.589% due 03/25/44 (Ê) | | | 222 | | | | 215 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
FDIC Structured Sale Guaranteed Notes Series 2010-S1 Class 1A
0.791% due 02/25/48 (Ê)(Þ) | | | 531 | | | | 532 | |
Federal Home Loan Bank
4.500% due 07/01/41 | | | 255 | | | | 272 | |
Federal Home Loan Mortgage Corp.
0.055% due 02/27/15 | | | 775 | | | | 776 | |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass
Through Certificates
Series 2010-K009 Class A2
3.808% due 08/25/20 | | | 1,615 | | | | 1,773 | |
Series 2011-K014 Class X1
Interest Only STRIP
1.451% due 04/25/21 | | | 4,699 | | | | 411 | |
Series 2011-K703 Class A1
1.873% due 01/25/18 | | | 708 | | | | 725 | |
Series 2011-KAIV Class A2
3.989% due 06/25/46 | | | 1,585 | | | | 1,759 | |
Series 2012-K501 Class X1A
Interest Only STRIP
1.758% due 08/25/16 | | | 20,380 | | | | 1,177 | |
Series 2012-K706 Class X1
Interest Only STRIP
1.734% due 10/25/18 | | | 9,045 | | | | 791 | |
Federal Home Loan Mortgage Corp.
Structured Pass Through Securities
Series 2005-63 Class 1A1
1.369% due 02/25/45 (Ê) | | | 39 | | | | 38 | |
FHA Project Citi 68 NP
7.430% due 06/27/21 | | | 33 | | | | 32 | |
First Horizon Alternative Mortgage
Securities Series 2006-AA7 Class A1
2.410% due 01/25/37 (Ê) | | | 1,259 | | | | 663 | |
Freddie Mac
7.000% due 2014 | | | 1 | | | | 1 | |
6.000% due 2016 | | | 72 | | | | 78 | |
9.000% due 2016 | | | 29 | | | | 33 | |
6.000% due 2017 | | | 151 | | | | 164 | |
8.000% due 2017 | | | 5 | | | | 5 | |
4.500% due 2018 | | | 341 | | | | 366 | |
5.000% due 2018 | | | 82 | | | | 88 | |
4.500% due 2019 | | | 111 | | | | 119 | |
5.000% due 2019 | | | 242 | | | | 262 | |
5.500% due 2019 | | | 251 | | | | 273 | |
6.000% due 2022 | | | 11 | | | | 13 | |
5.500% due 2024 | | | 585 | | | | 636 | |
9.000% due 2024 | | | 4 | | | | 4 | |
3.500% due 2025 | | | 3,036 | | | | 3,227 | |
6.500% due 2025 | | | 5 | | | | 6 | |
8.000% due 2025 | | | 7 | | | | 9 | |
9.000% due 2025 | | | 6 | | | | 6 | |
9.000% due 2026 | | | 1 | | | | 1 | |
2.594% due 2027 (Ê) | | | 12 | | | | 13 | |
6.500% due 2027 | | | — | | | | — | |
8.500% due 2027 | | | 27 | | | | 34 | |
6.000% due 2028 | | | 466 | | | | 515 | |
6.500% due 2028 | | | 87 | | | | 100 | |
| | | | |
| | 292 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
6.500% due 2029 | | | 121 | | | | 139 | |
2.606% due 2030 (Ê) | | | 6 | | | | 6 | |
6.500% due 2031 | | | 161 | | | | 186 | |
5.500% due 2032 | | | 451 | | | | 497 | |
6.000% due 2032 | | | 32 | | | | 36 | |
6.500% due 2032 | | | 255 | | | | 292 | |
7.000% due 2032 | | | 172 | | | | 201 | |
7.500% due 2032 | | | 24 | | | | 30 | |
5.500% due 2033 | | | 235 | | | | 258 | |
6.000% due 2033 | | | 4 | | | | 4 | |
6.500% due 2033 | | | 31 | | | | 35 | |
4.500% due 2034 | | | 166 | | | | 177 | |
5.000% due 2034 | | | 1,254 | | | | 1,359 | |
5.500% due 2034 | | | 728 | | | | 798 | |
6.000% due 2034 | | | 87 | | | | 98 | |
6.500% due 2034 | | | 81 | | | | 93 | |
5.000% due 2035 | | | 1,337 | | | | 1,447 | |
5.500% due 2035 | | | 769 | | | | 844 | |
6.000% due 2035 | | | 199 | | | | 223 | |
5.000% due 2036 | | | 272 | | | | 300 | |
5.500% due 2036 | | | 1,031 | | | | 1,125 | |
6.000% due 2036 | | | 339 | | | | 378 | |
5.000% due 2037 (Ê) | | | 601 | | | | 644 | |
5.500% due 2037 | | | 228 | | | | 249 | |
6.000% due 2037 | | | 914 | | | | 1,010 | |
5.000% due 2038 | | | 349 | | | | 378 | |
5.500% due 2038 | | | 4,704 | | | | 5,140 | |
6.000% due 2038 | | | 4,635 | | | | 5,138 | |
4.500% due 2039 | | | 4,627 | | | | 5,056 | |
5.500% due 2039 | | | 94 | | | | 103 | |
6.000% due 2039 | | | 328 | | | | 362 | |
4.000% due 2040 | | | 6,990 | | | | 7,495 | |
4.500% due 2040 | | | 11,320 | | | | 12,355 | |
5.000% due 2040 | | | 566 | | | | 612 | |
5.500% due 2040 | | | 331 | | | | 360 | |
6.000% due 2040 | | | 229 | | | | 253 | |
4.000% due 2041 | | | 18,933 | | | | 20,222 | |
4.500% due 2041 | | | 5,988 | | | | 6,403 | |
5.000% due 2041 | | | 1,762 | | | | 1,908 | |
4.000% due 2042 | | | 1,266 | | | | 1,339 | |
15 Year TBA (Ï) | | | | | | | | |
2.500% | | | 3,780 | | | | 3,866 | |
30 Year TBA (Ï) | | | | | | | | |
3.500% | | | 8,355 | | | | 8,659 | |
4.000% | | | 3,490 | | | | 3,682 | |
4.500% | | | 245 | | | | 261 | |
5.000% | | | 6,825 | | | | 7,375 | |
5.500% | | | (1,000 | ) | | | (1,089 | ) |
6.000% | | | (2,000 | ) | | | (2,205 | ) |
Freddie Mac Reference REMIC
Series 2006-R006 Class ZA
6.000% due 04/15/36 | | | 2,578 | | | | 3,019 | |
Freddie Mac REMICS
Series 1991-1053 Class G
7.000% due 03/15/21 | | | 19 | | | | 22 | |
Series 1998-2104 Class ZM
6.000% due 12/15/28 | | | 202 | | | | 228 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2000-2266 Class F
0.690% due 11/15/30 (Ê) | | | 5 | | | | 5 | |
Series 2002-2533 Class Z
5.500% due 12/15/32 | | | 4,381 | | | | 4,865 | |
Series 2004-2778 Class UF
0.540% due 06/15/33 (Ê) | | | 29 | | | | 29 | |
Series 2007-3335 Class BF
0.390% due 07/15/19 (Ê) | | | 328 | | | | 328 | |
Series 2007-3335 Class FT
0.390% due 08/15/19 (Ê) | | | 439 | | | | 439 | |
Series 2010-3653 Class B
4.500% due 04/15/30 | | | 2,000 | | | | 2,219 | |
Series 2012-3989 Class BW
3.500% due 01/15/27 | | | 3,180 | | | | 3,395 | |
GE Business Loan Trust
Series 2003-2A Class A
0.610% due 11/15/31 (Å)(Ê) | | | 992 | | | | 921 | |
GE Capital Commercial Mortgage Corp.
Series 2005-C4 Class A4
5.437% due 11/10/45 | | | 1,570 | | | | 1,740 | |
Ginnie Mae I
8.000% due 2017 | | | 3 | | | | 3 | |
10.500% due 2020 | | | 4 | | | | 4 | |
8.000% due 2022 | | | 8 | | | | 9 | |
8.500% due 2022 | | | 8 | | | | 8 | |
8.500% due 2024 | | | 6 | | | | 6 | |
8.000% due 2025 | | | 14 | | | | 14 | |
9.000% due 2025 | | | 8 | | | | 8 | |
8.000% due 2026 | | | 33 | | | | 41 | |
7.000% due 2029 | | | 2 | | | | 2 | |
8.000% due 2029 | | | 10 | | | | 11 | |
8.500% due 2029 | | | 18 | | | | 19 | |
8.000% due 2030 | | | 17 | | | | 18 | |
7.000% due 2031 | | | 165 | | | | 197 | |
7.000% due 2032 | | | 48 | | | | 57 | |
7.000% due 2033 | | | 13 | | | | 16 | |
Ginnie Mae II
1.625% due 2027 (Ê) | | | 22 | | | | 23 | |
2.000% due 2030 (Ê) | | | 57 | | | | 59 | |
2.375% due 2030 (Ê) | | | 9 | | | | 9 | |
7.500% due 2032 | | | 4 | | | | 5 | |
5.500% due 2039 | | | 538 | | | | 598 | |
4.500% due 2041 | | | 3,501 | | | | 3,846 | |
5.500% due 2041 | | | 53 | | | | 59 | |
4.500% due 2042 | | | 542 | | | | 596 | |
30 Year TBA (Ï) | | | | | | | | |
3.500% | | | 3,670 | | | | 3,863 | |
4.000% | | | 4,210 | | | | 4,554 | |
4.500% | | | 6,055 | | | | 6,628 | |
Government National Mortgage Association
Series 2004-93 Class PC
5.000% due 04/16/34 | | | 2,650 | | | | 2,964 | |
Series 2007-26 Class SD
Interest Only STRIP
6.560% due 05/16/37 (Ê) | | | 5,406 | | | | 914 | |
Series 2010-116 Class MP
3.500% due 09/16/40 | | | 4,347 | | | | 4,634 | |
| | |
| Russell Investment Grade Bond Fund | | 293 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Greenpoint Mortgage Pass-Through Certificates
Series 2003-1 Class A1
3.130% due 10/25/33 (Ê) | | | 161 | | | | 141 | |
Greenwich Capital Commercial
Funding Corp.
Series 2002-C1 Class B
5.104% due 01/11/35 | | | 395 | | | | 401 | |
Series 2003-C2 Class A3
4.533% due 01/05/36 | | | 468 | | | | 470 | |
Series 2004-GG1 Class A7
5.317% due 06/10/36 | | | 1,940 | | | | 2,064 | |
Series 2006-GG7 Class A4
6.081% due 07/10/38 | | | 3,350 | | | | 3,818 | |
Series 2007-GG9 Class A4
5.444% due 03/10/39 | | | 1,660 | | | | 1,837 | |
GS Mortgage Securities Corp. II
Series 2004-GG2 Class A4
4.964% due 08/10/38 | | | 1,071 | | | | 1,085 | |
Series 2006-GG6 Class A4
5.553% due 04/10/38 | | | 1,150 | | | | 1,281 | |
Series 2011-GC5 Class A4
3.707% due 08/10/44 | | | 2,370 | | | | 2,503 | |
GSMPS Mortgage Loan Trust
Series 2004-4 Class 1AF
0.639% due 06/25/34 (Ê)(Þ) | | | 581 | | | | 502 | |
GSR Mortgage Loan Trust
Series 2005-AR7 Class 6A1
5.133% due 11/25/35 (Ê) | | | 1,619 | | | | 1,549 | |
Harborview Mortgage Loan Trust
Series 2004-4 Class 3A
1.366% due 06/19/34 (Ê) | | | 93 | | | | 75 | |
Series 2005-4 Class 3A1
2.838% due 07/19/35 (Ê) | | | 250 | | | | 179 | |
Series 2006-3 Class 1A1A
2.669% due 06/19/36 (Ê) | | | 3,353 | | | | 1,650 | |
Homestar Mortgage Acceptance Corp.
Series 2004-5 Class A1
0.689% due 10/25/34 (Ê) | | | 1,512 | | | | 1,430 | |
Impac CMB Trust
Series 2004-5 Class 1A1
0.959% due 10/25/34 (Ê) | | | 386 | | | | 335 | |
Indymac Index Mortgage Loan Trust
Series 2004-AR6 Class 5A1
2.719% due 10/25/34 (Ê) | | | 1,655 | | | | 1,494 | |
Series 2005-AR15 Class A2
4.846% due 09/25/35 (Ê) | | | 188 | | | | 140 | |
Series 2006-AR2 Class 1A1B
0.449% due 04/25/46 (Ê) | | | 594 | | | | 345 | |
Series 2007-FLX1 Class A1
0.339% due 02/25/37 (Ê) | | | 546 | | | | 537 | |
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2002-C3 Class A2
4.994% due 07/12/35 | | | 1,560 | | | | 1,581 | |
Series 2005-LDP2 Class A3
4.697% due 07/15/42 | | | 17 | | | | 17 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2007-CB20 Class ASB
5.688% due 02/12/51 | | | 1,141 | | | | 1,238 | |
Series 2008-C2 Class ASB
6.125% due 02/12/51 | | | 1,055 | | | | 1,133 | |
JP Morgan Mortgage Trust
Series 2006-A2 Class 1A1
2.857% due 04/25/36 (Ê) | | | 352 | | | | 246 | |
Series 2007-A1 Class 3A2
2.929% due 07/25/35 (Ê) | | | 972 | | | | 875 | |
Series 2007-A4 Class 3A1
5.497% due 06/25/37 (Ê) | | | 728 | | | | 615 | |
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2002-C2 Class A2
5.050% due 12/12/34 | | | 1,430 | | | | 1,448 | |
Series 2003-C1 Class A2
4.985% due 01/12/37 | | | 1,655 | | | | 1,686 | |
Series 2006-CB16 Class A4
5.552% due 05/12/45 | | | 785 | | | | 883 | |
Series 2006-LDP7 Class A4
6.065% due 04/15/45 | | | 690 | | | | 790 | |
Series 2006-LDP8 Class A3B
5.447% due 05/15/45 | | | 820 | | | | 855 | |
Series 2006-LDP8 Class A4
5.399% due 05/15/45 | | | 1,055 | | | | 1,191 | |
Series 2006-LDP9 Class A3
5.336% due 05/15/47 | | | 1,555 | | | | 1,713 | |
Series 2007-CB18 Class A4
5.440% due 06/12/47 | | | 1,300 | | | | 1,457 | |
Series 2012-C6 Class A3
3.507% due 05/15/45 | | | 725 | | | | 746 | |
JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1
5.003% due 02/25/35 (Ê) | | | 122 | | | | 122 | |
LB-UBS Commercial Mortgage Trust
Series 2003-C3 Class F
4.333% due 02/15/37 | | | 664 | | | | 671 | |
Series 2003-C5 Class C
4.762% due 04/15/37 | | | 360 | | | | 371 | |
Series 2005-C3 Class A5
4.739% due 07/15/30 | | | 450 | | | | 492 | |
Series 2007-C1 Class A4
5.424% due 02/15/40 | | | 123 | | | | 139 | |
Series 2007-C6 Class A4
5.858% due 07/15/40 | | | 1,170 | | | | 1,328 | |
Mastr Adjustable Rate Mortgages Trust Series 2004-13 Class 2A1
2.634% due 04/21/34 (Ê) | | | 955 | | | | 938 | |
MASTR Alternative Loans Trust
Series 2003-4 Class B1
5.801% due 06/25/33 | | | 263 | | | | 231 | |
Series 2004-10 Class 5A6
5.750% due 09/25/34 | | | 457 | | | | 465 | |
Merrill Lynch Mortgage Investors, Inc. Series 2005-A10 Class A
0.449% due 02/25/36 (Ê) | | | 201 | | | | 145 | |
| | | | |
| | 294 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Merrill Lynch Mortgage Trust
Series 2003-KEY1 Class A4
5.236% due 11/12/35 | | | 1,300 | | | | 1,368 | |
Series 2005-CIP1 Class AM
5.107% due 07/12/38 | | | 885 | | | | 929 | |
Series 2008-C1 Class A4
5.690% due 02/12/51 | | | 1,385 | | | | 1,582 | |
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2006-4 Class A3
5.172% due 12/12/49 | | | 1,000 | | | | 1,103 | |
Series 2007-5 Class A4
5.378% due 08/12/48 | | | 2,000 | | | | 2,164 | |
Series 2007-7 Class A4
5.810% due 06/12/50 | | | 2,760 | | | | 2,984 | |
Series 2007-8 Class A3
6.165% due 08/12/49 | | | 900 | | | | 1,000 | |
Series 2007-8 Class ASB
6.098% due 08/12/49 | | | 810 | | | | 862 | |
MLCC Mortgage Investors, Inc.
Series 2005-2 Class 3A
1.241% due 10/25/35 (Ê) | | | 101 | | | | 87 | |
Series 2005-3 Class 4A
0.489% due 11/25/35 (Ê) | | | 47 | | | | 39 | |
Morgan Stanley Capital I
Series 2005-HQ5 Class A4
5.168% due 01/14/42 | | | 1,125 | | | | 1,216 | |
Series 2005-T19 Class A4A
4.890% due 06/12/47 | | | 1,665 | | | | 1,821 | |
Series 2006-HQ9 Class A4
5.731% due 07/12/44 | | | 1,135 | | | | 1,291 | |
Series 2006-IQ11 Class A4
5.898% due 10/15/42 | | | 360 | | | | 406 | |
Series 2006-T21 Class A4
5.162% due 10/12/52 | | | 1,135 | | | | 1,254 | |
Series 2006-T23 Class A4
5.987% due 08/12/41 | | | 1,080 | | | | 1,245 | |
Series 2007-IQ16 Class A4
5.809% due 12/12/49 | | | 2,045 | | | | 2,356 | |
Series 2011-C3 Class A2
3.224% due 07/15/49 | | | 400 | | | | 424 | |
Series 2011-C3 Class A4
4.118% due 07/15/49 | | | 235 | | | | 257 | |
Series 2012-C4 Class A4
3.244% due 03/15/45 | | | 1,600 | | | | 1,628 | |
Morgan Stanley Mortgage Loan Trust
Series 2004-6AR Class 1A
0.689% due 07/25/34 (Ê) | | | 2,078 | | | | 1,846 | |
NCUA Guaranteed Notes
Series 2010-R1 Class 1A
0.691% due 10/07/20 (Ê) | | | 2,946 | | | | 2,952 | |
Series 2010-R2 Class 1A
0.611% due 11/06/17 (Ê) | | | 2,680 | | | | 2,680 | |
Series 2010-R2 Class 2A
0.711% due 11/05/20 (Ê) | | | 1,741 | | | | 1,741 | |
Series 2010-R3 Class 1A
0.801% due 12/08/20 (Ê) | | | 1,584 | | | | 1,589 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2010-R3 Class 2A
0.801% due 12/08/20 (Ê) | | | 1,317 | | | | 1,322 | |
Series 2011-R2 Class 1A
0.641% due 02/06/20 (Ê) | | | 2,102 | | | | 2,103 | |
Nomura Asset Securities Corp.
Series 1998-D6 Class A1C
6.690% due 03/15/30 | | | 381 | | | | 386 | |
OBP Depositor LLC Trust
Series 2010-OBP Class A
4.646% due 07/15/45 (Þ) | | | 1,000 | | | | 1,138 | |
Prime Mortgage Trust
Series 2004-CL1 Class 1A2
0.639% due 02/25/34 (Ê) | | | 56 | | | | 50 | |
Series 2004-CL1 Class 2A2
0.639% due 02/25/19 (Ê) | | | 4 | | | | 4 | |
Residential Accredit Loans, Inc.
Series 2005-QA10 Class A41
5.616% due 09/25/35 (Ê) | | | 573 | | | | 389 | |
Series 2005-QO3 Class A1
0.639% due 10/25/45 (Ê) | | | 613 | | | | 350 | |
Series 2006-QO7 Class 3A2
0.444% due 09/25/46 (Ê) | | | 975 | | | | 465 | |
Salomon Brothers Mortgage Securities VII, Inc.
Series 2003-UP2 Class A1
4.000% due 12/25/18 | | | 69 | | | | 73 | |
Structured Adjustable Rate Mortgage Loan Trust
Series 2005-19XS Class 1A1
0.559% due 10/25/35 (Ê) | | | 318 | | | | 194 | |
Structured Asset Mortgage Investments, Inc.
Series 2005-AR5 Class A2
0.490% due 07/19/35 (Ê) | | | 220 | | | | 189 | |
Structured Asset Securities Corp.
Series 2003-26A Class 3A5
2.777% due 09/25/33 (Ê) | | | 550 | | | | 498 | |
Series 2003-34A Class 5A4
2.707% due 11/25/33 (Ê) | | | 1,613 | | | | 1,580 | |
Series 2006-11 Class A1
2.795% due 10/25/35 (Ê)(Þ) | | | 108 | | | | 85 | |
Wachovia Bank Commercial Mortgage Trust
Series 2006-C29 Class A4
5.308% due 11/15/48 | | | 119 | | | | 133 | |
Series 2006-WL7A Class A1
0.330% due 09/15/21 (Ê)(Þ) | | | 97 | | | | 94 | |
Series 2007-C30 Class A3
5.246% due 12/15/43 | | | 20 | | | | 21 | |
Series 2007-C33 Class A2
6.053% due 02/15/51 | | | 475 | | | | 476 | |
Series 2007-WHL8 Class A1
0.320% due 06/15/20 (Ê)(Þ) | | | 118 | | | | 110 | |
WaMu Mortgage Pass Through Certificates Series 2003-AR9 Class 1A7
2.459% due 09/25/33 (Ê) | | | 81 | | | | 82 | |
Series 2003-AR10 Class A7
2.448% due 10/25/33 (Ê) | | | 730 | | | | 732 | |
Series 2003-AR11 Class A6
2.467% due 10/25/33 (Ê) | | | 747 | | | | 745 | |
| | |
| Russell Investment Grade Bond Fund | | 295 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Washington Mutual Alternative Mortgage Pass-Through Certificates
Series 2007-OA2 Class 2A
0.869% due 01/25/47 (Ê) | | | 360 | | | | 149 | |
Washington Mutual Mortgage Pass Through Certificates
Series 2005-AR6 Class B3
0.899% due 04/25/45 (Å)(Ê) | | | 420 | | | | 14 | |
Series 2005-AR13 Class A1A1
0.529% due 10/25/45 (Ê) | | | 73 | | | | 58 | |
Series 2005-AR17 Class A1A2
0.529% due 12/25/45 (Ê) | | | 254 | | | | 188 | |
Series 2007-HY3 Class 4B1
2.692% due 03/25/37 (Ê) | | | 37 | | | | — | |
Series 2007-OA2 Class 1A
0.859% due 03/25/47 (Ê) | | | 339 | | | | 202 | |
Wells Fargo Mortgage Backed Securities Trust
Series 2003-17 Class 2A10
5.500% due 01/25/34 | | | 1,095 | | | | 1,147 | |
Series 2004-CC Class A1
2.604% due 01/25/35 (Ê) | | | 228 | | | | 215 | |
Series 2006-2 Class 2A3
5.500% due 03/25/36 | | | 371 | | | | 350 | |
Series 2006-AR2 Class 2A1
2.629% due 03/25/36 | | | 343 | | | | 301 | |
Series 2006-AR8 Class 1A3
2.646% due 04/25/36 (Ê) | | | 1,642 | | | | 1,543 | |
WF-RBS Commercial Mortgage Trust
Series 2011-C5 Class A4
3.667% due 11/15/44 | | | 1,105 | | | | 1,161 | |
| | | | | | | | |
| | | | | | | 741,808 | |
| | | | | | | | |
| | |
| Municipal Bonds - 1.7% | | | | | | | | |
Brazos Higher Education Authority Revenue Bonds
0.584% due 12/26/24 (Ê) | | | 851 | | | | 775 | |
City of New York New York General Obligation Unlimited
6.246% due 06/01/35 | | | 600 | | | | 685 | |
County of Clark Nevada Airport System Revenue Bonds
6.820% due 07/01/45 | | | 200 | | | | 271 | |
Iowa Tobacco Settlement Authority Revenue Bonds
6.500% due 06/01/23 | | | 70 | | | | 67 | |
Los Angeles Community College District General Obligation Unlimited
6.750% due 08/01/49 | | | 5,000 | | | | 6,722 | |
Los Angeles Unified School District General Obligation Unlimited
6.758% due 07/01/34 | | | 100 | | | | 129 | |
Massachusetts School Building Authority Revenue Bonds
5.468% due 06/15/27 | | | 5,000 | | | | 5,909 | |
Municipal Electric Authority of Georgia Revenue Bonds
6.637% due 04/01/57 | | | 180 | | | | 204 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
7.055% due 04/01/57 | | | 1,410 | | | | 1,480 | |
New Jersey Economic Development
Authority Revenue Bonds
1.474% due 06/15/13 (Ê) | | | 1,100 | | | | 1,101 | |
New York City Municipal Water Finance Authority Revenue Bonds
6.491% due 06/15/42 | | | 1,700 | | | | 1,954 | |
Northern California Power Agency Revenue Bonds
7.311% due 06/01/40 | | | 3,000 | | | | 3,514 | |
Northstar Education Finance, Inc.
Series 2007-1 Class A3 | | | | | | | | |
0.526% due 01/29/46 (Ê) | | | 1,000 | | | | 890 | |
Public Power Generation Agency Revenue Bonds
7.242% due 01/01/41 | | | 300 | | | | 349 | |
San Diego County Regional Airport Authority Revenue Bonds
6.628% due 07/01/40 | | | 500 | | | | 544 | |
San Diego Tobacco Settlement Revenue Funding Corp. Revenue Bonds
7.125% due 06/01/32 | | | 265 | | | | 207 | |
South Carolina Student Loan Corp. Revenue Bonds
0.607% due 12/01/20 (Ê) | | | 900 | | | | 862 | |
State of California General Obligation Unlimited
6.650% due 03/01/22 | | | 825 | | | | 1,002 | |
7.500% due 04/01/34 | | | 100 | | | | 128 | |
5.650% due 04/01/39 (Ê) | | | 100 | | | | 105 | |
7.550% due 04/01/39 | | | 875 | | | | 1,146 | |
7.600% due 11/01/40 | | | 475 | | | | 629 | |
State of Illinois General Obligation Unlimited
5.665% due 03/01/18 | | | 900 | | | | 997 | |
4.350% due 06/01/18 | | | 1,070 | | | | 1,110 | |
5.877% due 03/01/19 | | | 335 | | | | 372 | |
5.100% due 06/01/33 | | | 875 | | | | 812 | |
Tobacco Settlement Finance Authority Revenue Bonds
7.467% due 06/01/47 | | | 475 | | | | 354 | |
| | | | | | | | |
| | | | | | | 32,318 | |
| | | | | | | | |
| | |
| Non-US Bonds - 0.5% | | | | | | | | |
Canada Housing Trust No. 1
3.750% due 03/15/20 (Þ) | | CAD | 200 | | | | 222 | |
3.350% due 12/15/20 (Þ) | | CAD | 100 | | | | 108 | |
3.800% due 06/15/21 (Þ) | | CAD | 400 | | | | 447 | |
European Loan Conduit
Series 2007-25X Class A
1.207% due 05/15/19 (Ê) | | EUR | 53 | | | | 59 | |
Granite Master Issuer PLC
Series 2005-2 Class A7
0.848% due 12/20/54 (Ê) | | GBP | 268 | | | | 417 | |
MUFG Capital Finance 5, Ltd.
6.299% due 12/31/49 (ƒ) | | GBP | 1,000 | | | | 1,618 | |
Province of British Columbia Canada
4.300% due 06/18/42 | | CAD | 100 | | | | 116 | |
| | | | |
| | 296 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Province of Ontario Canada
4.300% due 03/08/17 | | CAD | 100 | | | | 111 | |
4.200% due 06/02/20 | | CAD | 700 | | | | 779 | |
4.000% due 06/02/21 | | CAD | 1,700 | | | | 1,860 | |
3.150% due 06/02/22 | | CAD | 300 | | | | 305 | |
4.700% due 06/02/37 | | CAD | 400 | | | | 474 | |
4.600% due 06/02/39 | | CAD | 300 | | | | 354 | |
Province of Quebec Canada
4.500% due 12/01/17 | | CAD | 200 | | | | 225 | |
4.500% due 12/01/18 | | CAD | 400 | | | | 453 | |
4.500% due 12/01/20 | | CAD | 100 | | | | 113 | |
4.250% due 12/01/21 | | CAD | 900 | | | | 1,000 | |
3.500% due 12/01/22 | | CAD | 600 | | | | 624 | |
| | | | | | | | |
| | | | | | | 9,285 | |
| | | | | | | | |
|
| United States Government Agencies - 2.4% | |
Fannie Mae
5.250% due 09/15/16 | | | 145 | | | | 172 | |
5.375% due 06/12/17 | | | 2,185 | | | | 2,651 | |
7.125% due 01/15/30 | | | 240 | | | | 362 | |
7.250% due 05/15/30 | | | 230 | | | | 354 | |
6.625% due 11/15/30 | | | 230 | | | | 336 | |
Federal Farm Credit Bank
5.125% due 08/25/16 | | | 310 | | | | 366 | |
Federal Home Loan Banks
0.875% due 12/27/13 | | | 680 | | | | 686 | |
Federal Home Loan Mortgage Corp.
0.700% due 11/04/13 | | | 3,585 | | | | 3,585 | |
0.625% due 12/29/14 | | | 3,510 | | | | 3,525 | |
0.500% due 04/17/15 | | | 3,335 | | | | 3,334 | |
1.600% due 08/10/15 | | | 1,400 | | | | 1,404 | |
2.500% due 05/27/16 | | | 790 | | | | 843 | |
2.000% due 08/25/16 | | | 3,215 | | | | 3,369 | |
1.000% due 03/08/17 | | | 575 | | | | 575 | |
1.250% due 05/12/17 | | | 720 | | | | 725 | |
3.750% due 03/27/19 | | | 3,095 | | | | 3,539 | |
1.750% due 05/30/19 | | | 160 | | | | 161 | |
2.375% due 01/13/22 | | | 7,765 | | | | 7,812 | |
Federal National Mortgage Association
0.375% due 03/16/15 | | | 2,510 | | | | 2,502 | |
0.500% due 05/27/15 | | | 2,835 | | | | 2,832 | |
2.375% due 04/11/16 | | | 215 | | | | 228 | |
1.375% due 11/15/16 | | | 290 | | | | 296 | |
1.125% due 04/27/17 | | | 800 | | | | 803 | |
Zero coupon due 10/09/19 | | | 2,490 | | | | 2,005 | |
6.000% due 04/18/36 | | | 95 | | | | 111 | |
Freddie Mac
5.050% due 01/26/15 | | | 690 | | | | 775 | |
5.250% due 04/18/16 | | | 1,000 | | | | 1,175 | |
Freddie Mac MAC
6.250% due 07/15/32 | | | 115 | | | | 165 | |
Tennessee Valley Authority
6.150% due 01/15/38 | | | 345 | | | | 476 | |
| | | | | | | | |
| | | | | | | 45,167 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| United States Government Treasuries - 17.9% | |
United States Treasury
Principal Only STRIP
Zero coupon due 02/15/27 | | | 3,040 | | | | 2,026 | |
United States Treasury Inflation Indexed Bonds
1.250% due 07/15/20 (Æ) | | | 418 | | | | 485 | |
0.125% due 01/15/22 | | | 402 | | | | 421 | |
2.000% due 01/15/26 (Æ) | | | 573 | | | | 723 | |
2.375% due 01/15/27 (Æ) | | | 9,820 | | | | 12,986 | |
1.750% due 01/15/28 (Æ) | | | 869 | | | | 1,071 | |
2.500% due 01/15/29 (Æ) | | | 424 | | | | 578 | |
2.125% due 02/15/41 (Æ) | | | 1,414 | | | | 1,943 | |
United States Treasury Notes
1.375% due 05/15/13 | | | 2,445 | | | | 2,475 | |
1.125% due 06/15/13 | | | 3,880 | | | | 3,919 | |
1.000% due 07/15/13 | | | 7,180 | | | | 7,246 | |
3.125% due 08/31/13 | | | 2,610 | | | | 2,710 | |
0.500% due 10/15/13 | | | 5,735 | | | | 5,756 | |
0.500% due 11/15/13 | | | 1,835 | | | | 1,842 | |
0.750% due 12/15/13 | | | 5,475 | | | | 5,519 | |
4.000% due 02/15/14 | | | 3,240 | | | | 3,456 | |
0.250% due 02/28/14 | | | 40,655 | | | | 40,653 | |
1.875% due 04/30/14 | | | 4,875 | | | | 5,029 | |
1.000% due 05/15/14 | | | 13,280 | | | | 13,472 | |
0.500% due 08/15/14 | | | 3,075 | | | | 3,088 | |
0.250% due 09/15/14 | | | 15,985 | | | | 15,960 | |
0.250% due 12/15/14 | | | 11,700 | | | | 11,671 | |
0.250% due 01/15/15 | | | 1,155 | | | | 1,152 | |
4.000% due 02/15/15 | | | 585 | | | | 644 | |
0.375% due 04/15/15 | | | 7,900 | | | | 7,899 | |
1.375% due 11/30/15 | | | 100 | | | | 103 | |
2.375% due 03/31/16 | | | 5,035 | | | | 5,381 | |
1.500% due 06/30/16 | | | 6,015 | | | | 6,227 | |
0.875% due 01/31/17 | | | 11,180 | | | | 11,239 | |
1.000% due 03/31/17 | | | 14,585 | | | | 14,731 | |
0.875% due 04/30/17 | | | 200 | | | | 201 | |
2.375% due 07/31/17 | | | 4,195 | | | | 4,512 | |
1.875% due 08/31/17 | | | 1,740 | | | | 1,827 | |
1.875% due 09/30/17 | | | 11,470 | | | | 12,036 | |
3.500% due 02/15/18 | | | 200 | | | | 228 | |
2.625% due 04/30/18 | | | 4,700 | | | | 5,131 | |
1.375% due 11/30/18 | | | 900 | | | | 909 | |
2.750% due 02/15/19 | | | 1,800 | | | | 1,977 | |
3.125% due 05/15/19 | | | 1,900 | | | | 2,134 | |
3.625% due 08/15/19 | | | 2,500 | | | | 2,894 | |
3.375% due 11/15/19 | | | 1,585 | | | | 1,806 | |
3.500% due 05/15/20 | | | 1,600 | | | | 1,839 | |
2.625% due 08/15/20 | | | 5,950 | | | | 6,422 | |
2.000% due 11/15/21 | | | 16,555 | | | | 16,736 | |
2.000% due 02/15/22 | | | 19,080 | | | | 19,223 | |
6.250% due 08/15/23 | | | 875 | | | | 1,243 | |
6.000% due 02/15/26 | | | 995 | | | | 1,416 | |
6.500% due 11/15/26 | | | 835 | | | | 1,248 | |
6.125% due 11/15/27 | | | 1,365 | | | | 1,995 | |
5.375% due 02/15/31 | | | 3,960 | | | | 5,530 | |
4.375% due 02/15/38 | | | 4,770 | | | | 5,971 | |
| | |
| Russell Investment Grade Bond Fund | | 297 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
3.500% due 02/15/39 | | | 7,795 | | | | 8,462 | |
4.375% due 05/15/40 | | | 2,160 | | | | 2,708 | |
3.875% due 08/15/40 | | | 2,905 | | | | 3,355 | |
3.125% due 11/15/41 | | | 16,130 | | | | 16,180 | |
3.125% due 02/15/42 | | | 15,840 | | | | 15,885 | |
| | | | | | | | |
| | | | | | | 332,273 | |
| | | | | | | | |
| |
Total Long-Term Investments
(cost $1,658,089) | | | | 1,695,443 | |
| | | | | | | | |
| Preferred Stocks - 0.3% | |
| Financial Services - 0.3% | |
CoBank ACB (Å) | | | 70,000 | | | | 3,729 | |
DG Funding Trust (Å) | | | 392 | | | | 2,932 | |
| | | | | | | | |
| | | | | | | 6,661 | |
| | | | | | | | |
| | |
Total Preferred Stocks
(cost $8,014) | | | | | | | 6,661 | |
| | | | | | | | |
|
| Short-Term Investments - 26.5% | |
Allstate Life Global Funding Trusts
5.375% due 04/30/13 | | | 965 | | | | 1,011 | |
Appalachian Power Co.
Series O
5.650% due 08/15/12 | | | 175 | | | | 177 | |
ASIF Global Financing XIX
4.900% due 01/17/13 (Þ) | | | 50 | | | | 51 | |
Bank of America Corp.
4.875% due 09/15/12 | | | 170 | | | | 172 | |
Bank of Nova Scotia
0.589% due 10/18/12 (ž) | | | 1,600 | | | | 1,601 | |
BB&T Corp.
3.850% due 07/27/12 | | | 740 | | | | 746 | |
Bear Stearns Cos. LLC (The)
4.923% due 12/07/12 (Ê) | | | 3,100 | | | | 3,218 | |
BellSouth Corp.
4.750% due 11/15/12 | | | 20 | | | | 20 | |
Carolina Power & Light Co.
6.500% due 07/15/12 | | | 5 | | | | 5 | |
Citigroup, Inc.
5.500% due 08/27/12 | | | 500 | | | | 507 | |
5.625% due 08/27/12 | | | 300 | | | | 304 | |
5.300% due 10/17/12 | | | 200 | | | | 204 | |
5.500% due 04/11/13 | | | 675 | | | | 698 | |
Countrywide Financial Corp.
Series MTN
5.800% due 06/07/12 (Ñ) | | | 50 | | | | 50 | |
Danske Bank A/S
2.500% due 05/10/12 (Þ) | | | 300 | | | | 300 | |
Deutsche Bank AG
5.375% due 10/12/12 | | | 350 | | | | 357 | |
Dominion Resources, Inc.
5.700% due 09/17/12 | | | 455 | | | | 464 | |
Duke Energy Carolinas LLC
5.625% due 11/30/12 | | | 265 | | | | 273 | |
Fannie Mae
3.625% due 02/12/13 | | | 3,800 | | | | 3,900 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Federal Farm Credit Bank
0.230% due 08/20/12 (Ê) | | | 3,535 | | | | 3,536 | |
0.140% due 01/28/13 | | | 12,000 | | | | 11,986 | |
Federal Home Loan Bank
3.375% due 02/27/13 | | | 2,800 | | | | 2,872 | |
Federal Home Loan Banks
0.170% due 02/08/13 | | | 43,000 | | | | 42,976 | |
0.190% due 02/12/13 | | | 2,100 | | | | 2,099 | |
0.125% due 02/14/13 | | | 600 | | | | 599 | |
0.180% due 02/15/13 | | | 1,300 | | | | 1,299 | |
0.170% due 02/25/13 | | | 12,400 | | | | 12,392 | |
0.200% due 03/01/13 | | | 10,000 | | | | 9,996 | |
0.240% due 04/26/13 | | | 200 | | | | 200 | |
0.150% due 02/06/13 | | | 58,300 | | | | 58,259 | |
0.190% due 02/28/13 | | | 400 | | | | 400 | |
Series 0002
0.200% due 03/01/13 | | | 100 | | | | 100 | |
Federal Home Loan Mortgage Corp.
0.270% due 10/12/12 (Ê) | | | 7,060 | | | | 7,063 | |
Federal National Mortgage Association
0.260% due 08/23/12 (Ê) | | | 2,040 | | | | 2,041 | |
0.360% due 09/13/12 (Ê) | | | 3,475 | | | | 3,477 | |
0.270% due 10/18/12 (Ê) | | | 3,530 | | | | 3,532 | |
Ford Credit Auto Lease Trust
Series 2012-A Class A1
0.358% due 03/15/13 (Þ) | | | 3,011 | | | | 3,015 | |
Freddie Mac
8.000% due 05/01/12 | | | — | | | | — | |
6.000% due 02/01/13 | | | 1 | | | | 1 | |
Freddie Mac Discount Notes
Zero coupon due 04/23/13 (ž) | | | 1,000 | | | | 998 | |
Gazprom OAO Via Gaz Capital SA
7.343% due 04/11/13 (Þ) | | | 100 | | | | 105 | |
Gazprom OAO Via RBS AG
Series REGS
9.625% due 03/01/13 | | | 100 | | | | 106 | |
General Electric Capital Corp.
2.125% due 12/21/12 | | | 1,070 | | | | 1,083 | |
Glitnir Banki HF
6.375% due 09/25/12 (Ø)(Þ) | | | 390 | | | | 101 | |
Goldman Sachs Group, Inc. (The)
3.625% due 08/01/12 (Ñ) | | | 100 | | | | 101 | |
5.450% due 11/01/12 | | | 220 | | | | 225 | |
Honda Auto Receivables Owner Trust
Series 2012-1 Class A1
0.413% due 03/15/13 | | | 2,902 | | | | 2,906 | |
HSBC Finance Corp.
1.020% due 04/05/13 (Ê) | | | 500 | | | | 658 | |
Huntington Auto Trust
Series 2012-1 Class A1
0.342% due 03/15/13 | | | 2,841 | | | | 2,845 | |
Hyundai Auto Receivables Trust
Series 2012-A Class A1
0.300% due 03/15/13 | | | 2,914 | | | | 2,917 | |
ING Bank NV
1.524% due 03/15/13 (Ê)(Þ) | | | 1,900 | | | | 1,903 | |
International Lease Finance Corp.
5.300% due 05/01/12 (ç) | | | 200 | | | | 200 | |
| | | | |
| | 298 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Itau Unibanco SA
Zero coupon due 05/09/12 (ç)(ž)
| | | 1,300 | | | | 1,300 | |
1.640% due 05/16/12 (ç)(ž) | | | 1,400 | | | | 1,399 | |
John Deere Owner Trust
Series 2012-A Class A1
0.379% due 03/15/13 | | | 2,860 | | | | 2,862 | |
KCP&L Greater Missouri Operations Co.
11.875% due 07/01/12 | | | 1,085 | | | | 1,104 | |
Kellogg Co.
5.125% due 12/03/12 | | | 300 | | | | 308 | |
MBNA Corp.
6.125% due 03/01/13 | | | 445 | | | | 460 | |
Merrill Lynch & Co., Inc.
0.710% due 06/05/12 (Ê) | | | 1,600 | | | | 1,600 | |
6.050% due 08/15/12 (Ñ) | | | 200 | | | | 203 | |
Mexico Cetes
Series BI
Zero coupon due 05/03/12 | | | 174,200 | | | | 13,369 | |
NGPL PipeCo LLC
6.514% due 12/15/12 (Ñ)(Þ) | | | 4,500 | | | | 4,484 | |
Nissan Auto Receivables Owner Trust
Series 2012-A Class A1
0.359% due 03/15/13 | | | 3,330 | | | | 3,334 | |
Northern States Power Co.
Series B
8.000% due 08/28/12 | | | 400 | | | | 410 | |
Ohio Power Co.
Series C
5.500% due 03/01/13 | | | 85 | | | | 88 | |
Principal Life Income Funding Trusts
5.300% due 04/24/13 | | | 300 | | | | 313 | |
Reynolds American, Inc.
Series*
7.250% due 06/01/12 | | | 40 | | | | 40 | |
Royal Bank of Scotland PLC (The)
2.625% due 05/11/12 (Þ) | | | 900 | | | | 900 | |
Russell U.S. Cash Management Fund | | | 186,632,866 | (¥) | | | 186,633 | |
Santander Drive Auto Receivables Trust
Series 2012-2 Class A1
0.330% due 03/15/13 | | | 2,061 | | | | 2,062 | |
SLM Corp.
3.125% due 09/17/12 | | | 400 | | | | 528 | |
SMART Trust
Series 2012-1USA Class A1
0.477% due 03/14/13 (Þ) | | | 1,066 | | | | 1,067 | |
Societe Financement de l’Economie Francaise
2.125% due 05/20/12 | | | 400 | | | | 530 | |
0.667% due 07/16/12 (Ê)(Þ) | | | 1,000 | | | | 1,000 | |
Spectra Energy Capital, LLC
0.470% due 05/01/12 (Å)(ç)(ž) | | | 17,400 | | | | 17,400 | |
Telefonica Emisiones SAU
2.582% due 04/26/13 | | | 1,405 | | | | 1,400 | |
Transocean, Inc.
5.250% due 03/15/13 (Ñ) | | | 280 | | | | 289 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
United Parcel Service, Inc.
4.500% due 01/15/13 | | | 100 | | | | 103 | |
United States Treasury Bills
0.078% due 06/14/12 (ç)(ž) | | | 95 | | | | 95 | |
0.144% due 09/13/12 (ž) | | | 200 | | | | 200 | |
0.142% due 10/04/12 (ž) | | | 100 | | | | 100 | |
Zero coupon due 12/13/12 | | | 45,000 | | | | 44,957 | |
0.201% due 03/07/13 (ž) | | | 20 | | | | 20 | |
United States Treasury Notes
1.375% due 03/15/13 | | | 1,610 | | | | 1,627 | |
0.625% due 04/30/13 | | | 2,910 | | | | 2,922 | |
Volkswagen International Finance NV
0.918% due 10/01/12 (Ê)(Þ) | | | 1,500 | | | | 1,501 | |
Wachovia Corp.
4.660% due 05/25/12 (Ê) | | | 1,700 | | | | 1,772 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $490,679) | | | | 490,429 | |
| | | | | | | | |
| |
| Repurchase Agreements - 0.3% | | | | | |
Agreement with Bank of America Securities LLC and State Street Bank (Tri-Party) of $5,000 dated April 30, 2012 at 0.200% to be repurchased at $5,000 on May 1, 2012 collateralized by: $5,080 par various United States Treasury Obligations, valued at $5,086. | | | 5,000 | | | | 5,000 | |
| | | | | | | | |
| |
Total Repurchase Agreements
(cost $5,000) | | | | 5,000 | |
| | | | | | | | |
| |
| Other Securities - 1.0% | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 613,905 | (¥) | | | 625 | |
Russell U.S. Cash Collateral Fund (×) | | | 18,296,655 | (¥) | | | 18,297 | |
| | | | | | | | |
| |
Total Other Securities
(cost $18,911) | | | | 18,922 | |
| | | | | | | | |
| |
Total Investments - 119.6%
(identified cost $2,180,693) | | | | 2,216,455 | |
| |
Other Assets and Liabilities,
Net - (19.6%) | | | | (363,723 | ) |
| | | | | | | | |
| |
| Net Assets - 100.0% | | | | 1,852,732 | |
| | | | | | | | |
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 Investment Grade Bond Fund | | 299 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
| Long Positions | | | | | | | | | | | | | | | | | | | | |
Eurodollar Futures (CME) | | | 26 | | | | USD | | | | 6,455 | | | | 03/14 | | | | 96 | |
United States Treasury 2 Year Note Futures | | | 187 | | | | USD | | | | 41,242 | | | | 06/12 | | | | 46 | |
United States Treasury 5 Year Note Futures | | | 222 | | | | USD | | | | 27,483 | | | | 06/12 | | | | 156 | |
United States Treasury 10 Year Note Futures | | | 477 | | | | USD | | | | 63,098 | | | | 06/12 | | | | 580 | |
United States Treasury 30 Year Note Futures | | | 101 | | | | USD | | | | 14,431 | | | | 06/12 | | | | 235 | |
| | | | | |
Short Positions | | | | | | | | | | | | | | | | | | | | |
United States Treasury 5 Year Note Futures | | | 114 | | | | USD | | | | 14,113 | | | | 06/12 | | | | (34 | ) |
United States Treasury 30 Year Note Futures | | | 15 | | | | USD | | | | 2,143 | | | | 06/12 | | | | (8 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | | | 1,071 | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 300 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Options Written | | Call/Put | | | Number of
Contracts | | | Strike
Price | | | Notional
Amount | | | Expiration
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Inflationary Floor Options | | | Call | | | | 1 | | | | 0.00 | | | | USD | | | | 1,930 | | | | 11/23/20 | | | | (4 | ) |
Inflationary Floor Options | | | Put | | | | 1 | | | | 0.00 | | | | USD | | | | 1,600 | | | | 03/12/20 | | | | (2 | ) |
Inflationary Floor Options | | | Put | | | | 1 | | | | 0.00 | | | | USD | | | | 1,000 | | | | 04/07/20 | | | | (1 | ) |
Inflationary Floor Options | | | Put | | | | 1 | | | | 0.00 | | | | USD | | | | 1,000 | | | | 09/29/20 | | | | (2 | ) |
| | | | | | | |
Swaptions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Fund Receives/Fund Pays) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
USD Three Month LIBOR/USD 1.400% | | | Call | | | | 2 | | | | 0.00 | | | | | | | | 2,500 | | | | 03/18/13 | | | | (26 | ) |
USD 0.9200%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | | | | | 12,600 | | | | 11/14/12 | | | | (11 | ) |
USD 1.000%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 1,800 | | | | 08/13/12 | | | | (1 | ) |
USD 1.000%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 7,700 | | | | 11/19/12 | | | | (2 | ) |
USD 1.200%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 4,900 | | | | 07/11/13 | | | | (12 | ) |
USD 1.400%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | | | | | 2,500 | | | | 03/18/13 | | | | (33 | ) |
USD 1.550%/USD Three Month LIBOR | | | Put | | | | 5 | | | | 0.00 | | | | | | | | 45,800 | | | | 08/13/12 | | | | (93 | ) |
USD 1.700%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | | | | | 13,900 | | | | 08/13/12 | | | | (18 | ) |
USD 1.700%/USD Three Month LIBOR | | | Put | | | | 4 | | | | 0.00 | | | | | | | | 34,900 | | | | 08/13/12 | | | | (45 | ) |
USD 1.750%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 8,100 | | | | 11/19/12 | | | | (1 | ) |
USD 2.000%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 2,500 | | | | 03/18/13 | | | | (14 | ) |
USD 2.250%/USD Three Month LIBOR | | | Put | | | | 5 | | | | 0.00 | | | | | | | | 36,800 | | | | 09/24/12 | | | | (1 | ) |
USD 2.250%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 7,200 | | | | 05/28/13 | | | | (2 | ) |
USD 3.000%/USD Three Month LIBOR | | | Put | | | | 6 | | | | 0.00 | | | | | | | | 51,700 | | | | 06/18/12 | | | | — | |
USD 3.250%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | | | | | 5,800 | | | | 07/16/12 | | | | — | |
USD 10.000%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | | | | | 1,600 | | | | 07/10/12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Liability for Options Written (premiums received $2,029) | | | | | | | | | | | | | | | | | | | | | | | | (268 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 301 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | | | |
Bank of America | | | USD | | | | 397 | | | | EUR | | | 300 | | | 05/03/12 | | | | — | |
Bank of Nova Scotia | | | USD | | | | 654 | | | | EUR | | | 499 | | | 06/14/12 | | | | 7 | |
Barclays Bank PLC | | | USD | | | | 100 | | | | BRL | | | 185 | | | 06/04/12 | | | | (3 | ) |
Barclays Bank PLC | | | USD | | | | 100 | | | | BRL | | | 185 | | | 06/04/12 | | | | (4 | ) |
Barclays Bank PLC | | | USD | | | | 267 | | | | EUR | | | 200 | | | 06/14/12 | | | | (2 | ) |
Barclays Bank PLC | | | USD | | | | 551 | | | | EUR | | | 420 | | | 07/16/12 | | | | 5 | |
Barclays Bank PLC | | | USD | | | | 657 | | | | EUR | | | 500 | | | 07/16/12 | | | | 6 | |
Barclays Bank PLC | | | USD | | | | 2,281 | | | | GBP | | | 1,423 | | | 05/02/12 | | | | 29 | |
Barclays Bank PLC | | | USD | | | | 284 | | | | MXN | | | 3,681 | | | 06/15/12 | | | | (3 | ) |
Barclays Bank PLC | | | CAD | | | | 5,806 | | | | USD | | | 5,861 | | | 06/21/12 | | | | (9 | ) |
Barclays Bank PLC | | | EUR | | | | 8 | | | | USD | | | 11 | | | 06/14/12 | | | | — | |
Barclays Bank PLC | | | EUR | | | | 4,147 | | | | USD | | | 5,428 | | | 07/16/12 | | | | (64 | ) |
Barclays Bank PLC | | | GBP | | | | 1,423 | | | | USD | | | 2,280 | | | 06/01/12 | | | | (29 | ) |
Citibank | | | USD | | | | 400 | | | | EUR | | | 300 | | | 06/14/12 | | | | (3 | ) |
Citibank | | | USD | | | | 320 | | | | GBP | | | 200 | | | 05/02/12 | | | | 5 | |
Citibank | | | EUR | | | | 6,628 | | | | USD | | | 8,774 | | | 05/02/12 | | | | — | |
Credit Suisse First Boston | | | AUD | | | | 5,377 | | | | USD | | | 5,541 | | | 06/07/12 | | | | (40 | ) |
Credit Suisse First Boston | | | EUR | | | | 4,148 | | | | USD | | | 5,434 | | | 07/16/12 | | | | (59 | ) |
Deutsche Bank AG | | | USD | | | | 132 | | | | EUR | | | 100 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | | USD | | | | 133 | | | | EUR | | | 100 | | | 06/14/12 | | | | — | |
Deutsche Bank AG | | | USD | | | | 265 | | | | EUR | | | 200 | | | 06/14/12 | | | | (1 | ) |
Deutsche Bank AG | | | USD | | | | 266 | | | | EUR | | | 200 | | | 06/14/12 | | | | (1 | ) |
Deutsche Bank AG | | | USD | | | | 914 | | | | EUR | | | 689 | | | 06/14/12 | | | | (2 | ) |
Deutsche Bank AG | | | USD | | | | 1,829 | | | | EUR | | | 1,403 | | | 06/14/12 | | | | 28 | |
Deutsche Bank AG | | | USD | | | | 394 | | | | EUR | | | 300 | | | 07/16/12 | | | | 3 | |
Deutsche Bank AG | | | USD | | | | 539 | | | | EUR | | | 412 | | | 07/16/12 | | | | 7 | |
Deutsche Bank AG | | | USD | | | | 318 | | | | GBP | | | 200 | | | 05/02/12 | | | | 6 | |
Deutsche Bank AG | | | USD | | | | 477 | | | | GBP | | | 300 | | | 05/02/12 | | | | 10 | |
Deutsche Bank AG | | | EUR | | | | 4,147 | | | | USD | | | 5,436 | | | 07/16/12 | | | | (55 | ) |
Deutsche Bank AG | | | GBP | | | | 3,028 | | | | USD | | | 4,796 | | | 05/02/12 | | | | (119 | ) |
Goldman Sachs | | | USD | | | | 522 | | | | BRL | | | 985 | | | 06/04/12 | | | | (9 | ) |
HSBC Bank PLC | | | USD | | | | 25 | | | | MXN | | | 317 | | | 06/15/12 | | | | — | |
HSBC Bank PLC | | | MXN | | | | 87,100 | | | | USD | | | 6,641 | | | 05/03/12 | | | | (46 | ) |
HSBC Bank PLC | | | MXN | | | | 87,100 | | | | USD | | | 6,637 | | | 05/03/12 | | | | (50 | ) |
JPMorgan Chase Bank | | | USD | | | | 8,699 | | | | EUR | | | 6,628 | | | 05/02/12 | | | | 75 | |
JPMorgan Chase Bank | | | USD | | | | 140 | | | | EUR | | | 105 | | | 06/14/12 | | | | (1 | ) |
JPMorgan Chase Bank | | | USD | | | | 791 | | | | EUR | | | 600 | | | 06/14/12 | | | | 3 | |
JPMorgan Chase Bank | | | USD | | | | 643 | | | | GBP | | | 405 | | | 05/02/12 | | | | 14 | |
JPMorgan Chase Bank | | | EUR | | | | 6,628 | | | | USD | | | 8,700 | | | 06/01/12 | | | | (74 | ) |
Morgan Stanley & Co., Inc. | | | USD | | | | 100 | | | | BRL | | | 185 | | | 06/04/12 | | | | (4 | ) |
Morgan Stanley & Co., Inc. | | | USD | | | | 170 | | | | BRL | | | 314 | | | 06/04/12 | | | | (6 | ) |
Morgan Stanley & Co., Inc. | | | USD | | | | 1,059 | | | | EUR | | | 800 | | | 06/14/12 | | | | — | |
Morgan Stanley & Co., Inc. | | | USD | | | | 393 | | | | EUR | | | 300 | | | 07/16/12 | | | | 4 | |
Morgan Stanley & Co., Inc. | | | BRL | | | | 1,854 | | | | USD | | | 1,061 | | | 06/04/12 | | | | 95 | |
Royal Bank of Canada | | | USD | | | | 403 | | | | EUR | | | 302 | | | 06/14/12 | | | | (2 | ) |
Royal Bank of Canada | | | USD | | | | 160 | | | | GBP | | | 100 | | | 05/02/12 | | | | 2 | |
Royal Bank of Canada | | | EUR | | | | 5 | | | | USD | | | 7 | | | 07/16/12 | | | | — | |
UBS AG | | | USD | | | | 266 | | | | EUR | | | 202 | | | 06/14/12 | | | | 1 | |
UBS AG | | | USD | | | | 526 | | | | EUR | | | 400 | | | 06/14/12 | | | | 4 | |
UBS AG | | | USD | | | | 1,320 | | | | EUR | | | 1,000 | | | 06/14/12 | | | | 4 | |
UBS AG | | | USD | | | | 263 | | | | EUR | | | 200 | | | 07/16/12 | | | | 2 | |
UBS AG | | | USD | | | | 392 | | | | EUR | | | 300 | | | 07/16/12 | | | | 5 | |
UBS AG | | | USD | | | | 529 | | | | EUR | | | 400 | | | 07/16/12 | | | | 1 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 302 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | | | |
UBS AG | | | USD | | | | 636 | | | | GBP | | | 400 | | | 05/02/12 | | | | 13 | |
UBS AG | | | USD | | | | 7 | | | | MXN | | | 87 | | | 06/15/12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | | | | | | | (257 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Interest Rate Swap Contracts | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Notional
Amount | | | Fund Receives | | Fund Pays | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
Barclays Bank PLC | | MXN | | | 28,300 | | | 5.600% | | Mexico Interbank 28 Day Deposit Rate | | | 09/06/16 | | | | 21 | |
Barclays Bank PLC | | USD | | | 1,840 | | | Three Month LIBOR | | 2.911% | | | 02/16/27 | | | | (91 | ) |
Citibank | | AUD | | | 200 | | | 4.250% | | Six Month BBSW | | | 06/15/17 | | | | 1 | |
Citibank | | AUD | | | 300 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 13 | |
Citibank | | AUD | | | 800 | | | 5.250% | | Six Month BBSW | | | 06/15/22 | | | | 52 | |
Credit Suisse Financial Products | | USD | | | 10,400 | | | Three Month LIBOR | | 2.750% | | | 06/20/42 | | | | 191 | |
Deutsche Bank | | AUD | | | 100 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 4 | |
Deutsche Bank | | AUD | | | 100 | | | 4.250% | | Six Month BBSW | | | 06/15/17 | | | | 1 | |
Goldman Sachs | | USD | | | 6,600 | | | 1.500% | | Three Month LIBOR | | | 03/18/16 | | | | 6 | |
Goldman Sachs | | AUD | | | 3,000 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 126 | |
HSBC | | MXN | | | 1,700 | | | 5.600% | | Mexico Interbank 28 Day Deposit Rate | | | 09/06/16 | | | | 1 | |
Morgan Stanley | | MXN | | | 1,700 | | | 5.600% | | Mexico Interbank 28 Day Deposit Rate | | | 09/06/16 | | | | 1 | |
Morgan Stanley | | MXN | | | 1,500 | | | 6.350% | | Mexico Interbank 28 Day Deposit Rate | | | 06/02/21 | | | | 1 | |
Morgan Stanley | | USD | | | 1,900 | | | Three Month LIBOR | | 2.830% | | | 02/18/42 | | | | (13 | ) |
Royal Bank of Scotland | | AUD | | | 300 | | | 5.000% | | Six Month BBSW | | | 06/15/17 | | | | 13 | |
| | | | | | | | | | | | | | | | | | |
| |
Total Market Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $216 (å) | | | | 327 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Credit Default Swap Contracts | |
| Corporate Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
American International Group, Inc. | | Bank of America | | | 1.676% | | | USD | | | 900 | | | | 1.000% | | | | 03/20/16 | | | | (22 | ) |
American International Group, Inc. | | Citibank | | | 1.676% | | | USD | | | 1,000 | | | | 1.000% | | | | 03/20/16 | | | | (24 | ) |
Berkshire Hathaway, Inc. | | Deutsche Bank | | | 0.506% | | | USD | | | 2,900 | | | | 1.000% | | | | 03/20/13 | | | | 15 | |
GE Capital Corp. | | Deutsche Bank | | | 0.438% | | | USD | | | 1,425 | | | | 1.070% | | | | 12/20/12 | | | | 8 | |
GE Capital Corp. | | Bank of America | | | 1.305% | | | USD | | | 2,300 | | | | 1.000% | | | | 03/20/16 | | | | (21 | ) |
MetLife, Inc. | | Deutsche Bank | | | 0.935% | | | USD | | | 1,500 | | | | 2.050% | | | | 03/20/13 | | | | 18 | |
MetLife, Inc. | | UBS | | | 0.935% | | | USD | | | 1,500 | | | | 2.050% | | | | 03/20/13 | | | | 18 | |
MetLife, Inc. | | Bank of America | | | 1.708% | | | USD | | | 1,800 | | | | 1.000% | | | | 12/20/14 | | | | (30 | ) |
MetLife, Inc. | | Credit Suisse Financial Products | | | 1.708% | | | USD | | | 100 | | | | 1.000% | | | | 12/20/14 | | | | (2 | ) |
Prudential Financial, Inc. | | Deutsche Bank | | | 0.666% | | | USD | | | 1,500 | | | | 2.300% | | | | 03/20/13 | | | | 27 | |
Prudential Financial, Inc. | | UBS | | | 0.666% | | | USD | | | 1,500 | | | | 2.300% | | | | 03/20/13 | | | | 27 | |
Wells Fargo & Co. | | Goldman Sachs | | | 0.300% | | | USD | | | 700 | | | | 1.000% | | | | 06/20/13 | | | | 6 | |
Wells Fargo & Co. | | Credit Suisse Financial Products | | | 0.349% | | | USD | | | 1,000 | | | | 1.000% | | | | 09/20/13 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Total Market Value on Open Corporate Issues Premiums Paid (Received) - ($132) | | | | | | | | | | | | 30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 303 |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (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 | | 2,406 | | 0.760% | | | 01/25/38 | | | | (1,524 | ) |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 2,420 | | (0.840%) | | | 10/12/52 | | | | 383 | |
CMBX AJ Index | | Barclays Bank PLC | | USD | | 445 | | (0.840%) | | | 10/12/52 | | | | 71 | |
CMBX AJ Index | | Credit Suisse Financial Products | | USD | | 115 | | (0.840%) | | | 10/12/52 | | | | 18 | |
Dow Jones CDX Index | | Citigroup Global Markets | | USD | | 900 | | (1.000%) | | | 06/20/17 | | | | (3 | ) |
Dow Jones CDX Index | | Deutsche Bank | | USD | | 1,543 | | 0.708% | | | 12/20/12 | | | | 8 | |
Dow Jones CDX Index | | Goldman Sachs | | USD | | 1,300 | | 1.120% | | | 12/20/12 | | | | 11 | |
Dow Jones CDX Index | | JPMorgan | | USD | | 400 | | 1.120% | | | 12/20/12 | | | | 4 | |
Dow Jones CDX Index | | JPMorgan | | USD | | 675 | | 0.553% | | | 12/20/17 | | | | 13 | |
Dow Jones CDX Index | | Morgan Stanley | | USD | | 5,498 | | 0.771% | | | 12/20/12 | | | | 32 | |
Dow Jones CDX Index | | Morgan Stanley | | USD | | 600 | | 0.963% | | | 12/20/12 | | | | 4 | |
Dow Jones CDX Index | | Pershing LLC 1st Republic P.B. | | USD | | 290 | | 0.548% | | | 12/20/17 | | | | 5 | |
Markit iTraxx Europe Series 16 Index | | Bank of America | | EUR | | 1,100 | | (1.000%) | | | 12/20/16 | | | | 23 | |
Markit iTraxx Europe Series 16 Index | | Barclays Bank PLC | | EUR | | 700 | | (1.000%) | | | 12/20/16 | | | | 15 | |
Markit iTraxx Europe Series 16 Index | | Deutsche Bank | | EUR | | 400 | | (1.000%) | | | 12/20/16 | | | | 9 | |
Markit iTraxx Europe Series 16 Index | | Goldman Sachs | | EUR | | 1,100 | | (1.000%) | | | 12/20/16 | | | | 23 | |
| | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Credit Indices Premiums Paid (Received) - $56 | | | | | | | (908 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Brazil Government International Bond | | Barclays Bank PLC | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Deutsche Bank | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Deutsche Bank | | | 0.886% | | | USD | | | 1,000 | | | | 1.000% | | | | 06/20/15 | | | | 5 | |
Brazil Government International Bond | | Goldman Sachs | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Morgan Stanley | | | 0.886% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/15 | | | | 3 | |
Brazil Government International Bond | | Bank of America | | | 0.936% | | | USD | | | 1,000 | | | | 1.000% | | | | 09/20/15 | | | | 3 | |
Brazil Government International Bond | | Citibank | | | 0.936% | | | USD | | | 1,000 | | | | 1.000% | | | | 09/20/15 | | | | 3 | |
Brazil Government International Bond | | HSBC | | | 0.936% | | | USD | | | 700 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
Brazil Government International Bond | | JPMorgan | | | 0.936% | | | USD | | | 200 | | | | 1.000% | | | | 09/20/15 | | | | 1 | |
Brazil Government International Bond | | UBS | | | 0.936% | | | USD | | | 500 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
Brazil Government International Bond | | Bank of America | | | 1.014% | | | USD | | | 2,600 | | | | 1.000% | | | | 03/20/16 | | | | 1 | |
Brazil Government International Bond | | Citibank | | | 1.047% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/16 | | | | (1 | ) |
Brazil Government International Bond | | Credit Suisse Financial Products | | | 1.047% | | | USD | | | 1,900 | | | | 1.000% | | | | 06/20/16 | | | | (2 | ) |
Brazil Government International Bond | | Deutsche Bank | | | 1.047% | | | USD | | | 1,000 | | | | 1.000% | | | | 06/20/16 | | | | (1 | ) |
Brazil Government International Bond | | HSBC | | | 1.047% | | | USD | | | 7,400 | | | | 1.000% | | | | 06/20/16 | | | | (9 | ) |
Brazil Government International Bond | | JPMorgan | | | 1.104% | | | USD | | | 200 | | | | 1.000% | | | | 09/20/16 | | | | (1 | ) |
China Government International Bond | | Morgan Stanley | | | 0.655% | | | USD | | | 2,000 | | | | 1.000% | | | | 03/20/15 | | | | 18 | |
China Government International Bond | | Barclays Bank PLC | | | 0.865% | | | USD | | | 2,400 | | | | 1.000% | | | | 03/20/16 | | | | 15 | |
China Government International Bond | | Morgan Stanley | | | 0.908% | | | USD | | | 1,200 | | | | 1.000% | | | | 06/20/16 | | | | 6 | |
China Government International Bond | | Deutsche Bank | | | 0.974% | | | USD | | | 400 | | | | 1.000% | | | | 09/20/16 | | | | 1 | |
China Government International Bond | | Goldman Sachs | | | 0.974% | | | USD | | | 100 | | | | 1.000% | | �� | | 09/20/16 | | | | — | |
China Government International Bond | | JPMorgan | | | 0.974% | | | USD | | | 400 | | | | 1.000% | | | | 09/20/16 | | | | 1 | |
China Government International Bond | | Morgan Stanley | | | 0.974% | | | USD | | | 300 | | | | 1.000% | | | | 09/20/16 | | | | 1 | |
France Government International Bond | | Goldman Sachs | | | 1.665% | | | USD | | | 3,300 | | | | 0.250% | | | | 03/20/16 | | | | (166 | ) |
France Government International Bond | | Morgan Stanley | | | 1.665% | | | USD | | | 500 | | | | 0.250% | | | | 03/20/16 | | | | (25 | ) |
France Government International Bond | | Royal Bank of Scotland | | | 1.665% | | | USD | | | 500 | | | | 0.250% | | | | 03/20/16 | | | | (25 | ) |
France Government International Bond | | Barclays Bank PLC | | | 1.721% | | | USD | | | 1,650 | | | | 0.250% | | | | 09/20/16 | | | | (101 | ) |
France Government International Bond | | HSBC | | | 1.777% | | | USD | | | 100 | | | | 0.250% | | | | 09/20/16 | | | | (6 | ) |
Germany Government International Bond | | UBS | | | 0.662% | | | USD | | | 1,200 | | | | 0.250% | | | | 06/20/16 | | | | (17 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 304 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Japan Government International Bond | | Bank of America | | | 0.733% | | | USD | | | 100 | | | | 1.000% | | | | 03/20/16 | | | | 1 | |
Japan Government International Bond | | Bank of America | | | 0.733% | | | USD | | | 200 | | | | 1.000% | | | | 03/20/16 | | | | 2 | |
Japan Government International Bond | | JPMorgan | | | 0.733% | | | USD | | | 700 | | | | 1.000% | | | | 03/20/16 | | | | 8 | |
Japan Government International Bond | | Goldman Sachs | | | 0.770% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/16 | | | | 5 | |
Kazakhstan Government International Bond | | Citibank | | | 1.905% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/16 | | | | (10 | ) |
Korea Government International Bond | | Deutsche Bank | | | 1.005% | | | USD | | | 600 | | | | 1.000% | | | | 06/20/16 | | | | — | |
Korea Government International Bond | | Deutsche Bank | | | 1.005% | | | USD | | | 400 | | | | 1.000% | | | | 06/20/16 | | | | — | |
Mexico Government International Bond | | Citibank | | | 0.788% | | | USD | | | 400 | | | | 1.000% | | | | 03/20/15 | | | | 3 | |
Mexico Government International Bond | | Credit Suisse Financial Products | | | 0.788% | | | USD | | | 400 | | | | 1.000% | | | | 03/20/15 | | | | 3 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.788% | | | USD | | | 200 | | | | 1.000% | | | | 03/20/15 | | | | 1 | |
Mexico Government International Bond | | Bank of America | | | 0.875% | | | USD | | | 300 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
Mexico Government International Bond | | Citibank | | | 0.875% | | | USD | | | 700 | | | | 1.000% | | | | 09/20/15 | | | | 4 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.951% | | | USD | | | 900 | | | | 1.000% | | | | 03/20/16 | | | | 3 | |
Mexico Government International Bond | | Goldman Sachs | | | 0.951% | | | USD | | | 3,100 | | | | 1.000% | | | | 03/20/16 | | | | 11 | |
Mexico Government International Bond | | Citibank | | | 0.982% | | | USD | | | 1,000 | | | | 1.000% | | | | 06/20/16 | | | | 3 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.982% | | | USD | | | 2,100 | | | | 1.000% | | | | 06/20/16 | | | | 6 | |
Mexico Government International Bond | | Morgan Stanley | | | 1.038% | | | USD | | | 300 | | | | 1.000% | | | | 09/20/16 | | | | — | |
Mexico Government International Bond | | Goldman Sachs | | | 1.168% | | | USD | | | 200 | | | | 1.000% | | | | 06/20/17 | | | | (2 | ) |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 100 | | | | 1.000% | | | | 03/20/15 | | | | 2 | |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/15 | | | | 7 | |
United Kingdom Gilt | | Goldman Sachs | | | 0.392% | | | USD | | | 400 | | | | 1.000% | | | | 12/20/15 | | | | 9 | |
United Kingdom Gilt | | Credit Suisse Financial Products | | | 0.433% | | | USD | | | 200 | | | | 1.000% | | | | 03/20/16 | | | | 4 | |
United Kingdom Gilt | | UBS | | | 0.469% | | | USD | | | 1,000 | | | | 1.000% | | | | 06/20/16 | | | | 23 | |
United Kingdom Gilt | | UBS | | | 0.469% | | | USD | | | 400 | | | | 1.000% | | | | 06/20/16 | | | | 9 | |
United States Government Bond | | BNP Paribas | | | 0.283% | | | EUR | | | 1,000 | | | | 0.250% | | | | 03/20/16 | | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Sovereign Issues Premiums Paid (Received) - ($870) | | | | | | | | (193 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Credit Default Swap Contracts Premiums Paid (Received) - ($946) (å) | | | | | | | | (1,071 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 305 |
Russell Investment Company
Russell Investment Grade Bond Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 81,251 | | | $ | — | | | $ | 81,251 | | | | 4.4 | |
Corporate Bonds and Notes | | | — | | | | 319,327 | | | | 5,710 | | | | 325,037 | | | | 17.6 | |
International Debt | | | — | | | | 125,409 | | | | 2,895 | | | | 128,304 | | | | 6.9 | |
Mortgage-Backed Securities | | | — | | | | 729,389 | | | | 12,419 | | | | 741,808 | | | | 40.1 | |
Municipal Bonds | | | — | | | | 32,318 | | | | — | | | | 32,318 | | | | 1.7 | |
Non-US Bonds | | | — | | | | 9,285 | | | | — | | | | 9,285 | | | | 0.5 | |
United States Government Agencies | | | — | | | | 45,167 | | | | — | | | | 45,167 | | | | 2.4 | |
United States Government Treasuries | | | — | | | | 332,273 | | | | — | | | | 332,273 | | | | 17.9 | |
Preferred Stocks | | | 3,729 | | | | — | | | | 2,932 | | | | 6,661 | | | | 0.3 | |
Short-Term Investments | | | — | | | | 490,429 | | | | — | | | | 490,429 | | | | 26.5 | |
Repurchase Agreements | | | — | | | | 5,000 | | | | — | | | | 5,000 | | | | 0.3 | |
Other Securities | | | — | | | | 18,922 | | | | — | | | | 18,922 | | | | 1.0 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 3,729 | | | | 2,188,770 | | | | 23,956 | | | | 2,216,455 | | | | 119.6 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (19.6 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 1,071 | | | | — | | | | — | | | | 1,071 | | | | 0.1 | |
Options Written | | | — | | | | (259 | ) | | | (9 | ) | | | (268 | ) | | | (— | )* |
Foreign Currency Exchange Contracts | | | — | | | | (257 | ) | | | — | | | | (257 | ) | | | (— | )* |
Interest Rate Swap Contracts | | | — | | | | 104 | | | | 7 | | | | 111 | | | | — | * |
Credit Default Swap Contracts | | | — | | | | (126 | ) | | | 1 | | | | (125 | ) | | | (— | )* |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 1,071 | | | $ | (538 | ) | | $ | (1 | ) | | $ | 532 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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.
The significant inputs used in determining the fair values of Level 3 securities were as follows:
| | | | | | | | | | |
| Category | | Inputs | | Market Value
$ | | | % of Level 3
Instruments’
Total Market Value | |
| | | | | | | | | | |
Corporate Bonds and Notes | | Broker Quote | | $ | 5,710 | | | | 23.8 | |
International Debt | | Broker Quote | | | 2,895 | | | | 12.1 | |
Mortgage-Backed Securities | | Broker Quote | | | 12,387 | | | | 51.8 | |
| | Investment Manager Fair Value Recommendation | | | 32 | | | | 0.1 | |
Preferred Stock | | Investment Manager Fair Value Recommendation | | | 2,932 | | | | 12.2 | |
Options Written | | Broker Quote | | | (4 | ) | | | — | * |
| | Other | | | (5 | ) | | | — | * |
Interest Rate Swap Contracts | | Other | | | 7 | | | | — | * |
Credit Default Swap Contracts | | Other | | | 1 | | | | — | * |
| | | | | | | | | | |
| | | | $ | 23,955 | | | | 100.0 | |
| | | | | | | | | | |
| * | Less than .05% of Level 3 Instruments’ Total Market Value. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 306 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
A reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining a value for the period ended April 30, 2012 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Beginning
Balance
11/1/2011 | | | Gross
Purchases | | | Gross
Sales | | | Accrued
Discounts/
(Premiums) | | | Realized
Gain/(Loss) | | | Net
Transfers
into
Level 3 | | | Net
Transfers
out of
Level 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Bonds and Notes | | $ | 7,305 | | | $ | 1,425 | | | $ | 3,381 | | | $ | (3 | ) | | $ | 95 | | | $ | — | | | $ | — | |
International Debt | | | — | | | | 2,898 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Mortgage-Backed Securities | | | 22,134 | | | | 1,618 | | | | 10,472 | | | | (3 | ) | | | (197 | ) | | | — | | | | 777 | |
Municipal Bonds | | | 2,989 | | | | — | | | | 2,856 | | | | 3 | | | | (25 | ) | | | — | | | | — | |
Preferred Stocks | | | 2,950 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Short-Term Investments | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 35,378 | | | | 5,941 | | | | 16,709 | | | | (3 | ) | | | (127 | ) | | | — | | | | 777 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options Written | | | (70 | ) | | | — | | | | — | | | | — | | | | 51 | | | | — | | | | — | |
Interest Rate Swap Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Credit Default Swap Contracts | | | (48 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Index Swaps | | | (12 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments | | | (130 | ) | | | — | | | | — | | | | — | | | | 51 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Category and Subcategory | | Net Change in
Unrealized
Appreciation
(Depreciation) | | | Ending
Balance at
4/30/2012 | | | Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
held as of
4/30/2012 | |
| | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | |
Corporate Bonds and Notes | | $ | 269 | | | $ | 5,710 | | | $ | 269 | |
International Debt | | | (3 | ) | | | 2,895 | | | | (3 | ) |
Mortgage-Backed Securities | | | 116 | | | | 12,419 | | | | 116 | |
Municipal Bonds | | | (111 | ) | | | — | | | | — | |
Preferred Stocks | | | (18 | ) | | | 2,932 | | | | (18 | ) |
Short-Term Investments | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Total Investments | | | 253 | | | | 23,956 | | | | 364 | |
| | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | |
Options Written | | | 10 | | | | (9 | ) | | | 10 | |
Interest Rate Swap Contracts | | | 7 | | | | 7 | | | | 7 | |
Credit Default Swap Contracts | | | 49 | | | | 1 | | | | 49 | |
Index Swaps | | | 12 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total Other Financial Instruments | | | 78 | | | | (1 | ) | | | 66 | |
| | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 307 |
Russell Investment Company
Russell Investment Grade Bond Fund
Fair Value of Derivative Instruments — April 30, 2012 (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 | | $ | — | | | $ | 329 | | | $ | — | |
Daily variation margin on futures contracts* | | | — | | | | — | | | | 1,029 | |
Interest rate swap contracts, at market value | | | — | | | | — | | | | 431 | |
Credit default swap contracts, at market value | | | 925 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 925 | | | $ | 329 | | | $ | 1,460 | |
| | | | | | | | | | | | |
Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 586 | | | $ | — | |
Daily variation margin on futures contracts* | | | — | | | | — | | | | 42 | |
Interest rate swap contracts, at market value | | | — | | | | — | | | | 104 | |
Credit default swap contracts, at market value | | | 1,996 | | | | — | | | | — | |
Options written, at market value | | | — | | | | — | | | | 268 | |
| | | | | | | | | | | | |
Total | | $ | 1,996 | | | $ | 586 | | | $ | 414 | |
| | | | | | | | | | | | |
| | | |
| 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 | | $ | — | | | $ | — | | | $ | 3,750 | |
Options Written | | | — | | | | — | | | | 390 | |
Credit default swap contracts | | | 256 | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | 2,457 | |
Index swap contracts | | | — | | | | — | | | | 42 | |
Foreign currency-related transactions | | | — | | | | (783 | ) | | | — | |
| | | | | | | | | | | | |
Total | | $ | 256 | | | $ | (783 | ) | | $ | 6,639 | |
| | | | | | | | | | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | (1,182 | ) |
Options Written | | | — | | | | — | | | | 494 | |
Credit default swap contracts | | | 983 | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | (1,399 | ) |
Index swap contracts | | | — | | | | — | | | | 12 | |
Foreign currency-related transactions | | | — | | | | 1,230 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 983 | | | $ | 1,230 | | | $ | (2,075 | ) |
| | | | | | | | | | | | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the Statements 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.
| | | | |
| | 308 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 2,180,693 | |
Investments, at market***, ****** | | | 2,216,455 | |
Cash (restricted) | | | 1,812 | |
Foreign currency holdings* | | | 31 | |
Unrealized appreciation on foreign currency exchange contracts | | | 329 | |
Receivables: | | | | |
Dividends and interest | | | 9,791 | |
Dividends from affiliated Russell money market funds | | | 24 | |
Investments sold | | | 154,433 | |
Fund shares sold | | | 3,508 | |
Investments matured******* | | | 96 | |
Daily variation margin on futures contracts | | | 83 | |
Other receivable | | | 340 | |
Prepaid expenses | | | 3 | |
Interest rate swap contracts, at market value***** | | | 431 | |
Credit default swap contracts, at market value**** | | | 925 | |
| | | | |
Total assets | | | 2,388,261 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to broker | | | 2,374 | |
Investments purchased | | | 507,263 | |
Fund shares redeemed | | | 3,151 | |
Accrued fees to affiliates | | | 653 | |
Other accrued expenses | | | 221 | |
Daily variation margin on futures contracts | | | 2 | |
Unrealized depreciation on foreign currency exchange contracts | | | 586 | |
Options written, at market value** | | | 268 | |
Payable upon return of securities loaned | | | 18,911 | |
Interest rate swap contracts, at market value***** | | | 104 | |
Credit default swap contracts, at market value**** | | | 1,996 | |
| | | | |
Total liabilities | | | 535,529 | |
| | | | |
| | | | |
Net Assets | | $ | 1,852,732 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 309 |
Russell Investment Company
Russell Investment Grade Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 2,883 | |
Accumulated net realized gain (loss) | | | 20,648 | |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 35,762 | |
Futures contracts | | | 1,071 | |
Options written | | | 1,761 | |
Credit default swap contracts | | | (125 | ) |
Interest rate swap contracts | | | 111 | |
Investments matured | | | (274 | ) |
Foreign currency-related transactions | | | (257 | ) |
Other investments | | | (976 | ) |
Shares of beneficial interest | | | 824 | |
Additional paid-in capital | | | 1,791,304 | |
| | | | |
Net Assets | | $ | 1,852,732 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 22.51 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | | $ | 23.39 | |
Class A — Net assets | | $ | 8,346,963 | |
Class A — Shares outstanding ($.01 par value) | | | 370,855 | |
Net asset value per share: Class C(a) | | $ | 22.41 | |
Class C — Net assets | | $ | 34,970,479 | |
Class C — Shares outstanding ($.01 par value) | | | 1,560,725 | |
Net asset value per share: Class E(a) | | $ | 22.49 | |
Class E — Net assets | | $ | 42,121,421 | |
Class E — Shares outstanding ($.01 par value) | | | 1,872,635 | |
Net asset value per share: Class I(a) | | $ | 22.50 | |
Class I — Net assets | | $ | 422,836,704 | |
Class I — Shares outstanding ($.01 par value) | | | 18,793,083 | |
Net asset value per share: Class S(a) | | $ | 22.48 | |
Class S — Net assets | | $ | 729,128,555 | |
Class S — Shares outstanding ($.01 par value) | | | 32,431,434 | |
Net asset value per share: Class Y(a) | | $ | 22.51 | |
Class Y — Net assets | | $ | 615,327,684 | |
Class Y — Shares outstanding ($.01 par value) | | | 27,332,432 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 32 | |
** Premiums received on options written | | $ | 2,029 | |
*** Securities on loan included in investments | | $ | 18,559 | |
**** Credit default swap contracts - premiums paid (received) | | $ | (946 | ) |
***** Interest rate swap contracts - premiums paid (received) | | $ | 216 | |
****** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 205,555 | |
******* Investments matured - cost | | $ | 370 | |
(a) 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.
| | | | |
| | 310 | | | Russell Investment Grade Bond Fund |
Russell Investment Company
Russell Investment Grade Bond Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 261 | |
Dividends from affiliated Russell money market funds | | | 133 | |
Interest | | | 23,792 | |
Securities lending income | | | 6 | |
| | | | |
Total investment income | | | 24,192 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 2,215 | |
Administrative fees | | | 443 | |
Custodian fees | | | 303 | |
Distribution fees - Class A | | | 8 | |
Distribution fees - Class C | | | 124 | |
Transfer agent fees - Class A | | | 5 | |
Transfer agent fees - Class C | | | 30 | |
Transfer agent fees - Class E | | | 40 | |
Transfer agent fees - Class I | | | 199 | |
Transfer agent fees - Class S | | | 617 | |
Transfer agent fees - Class Y | | | 13 | |
Professional fees | | | 60 | |
Registration fees | | | 118 | |
Shareholder servicing fees - Class C | | | 41 | |
Shareholder servicing fees - Class E | | | 55 | |
Trustees’ fees | | | 17 | |
Printing fees | | | 26 | |
Miscellaneous | | | 23 | |
| | | | |
Expenses before reductions | | | 4,337 | |
Expense reductions | | | (14 | ) |
| | | | |
Net expenses | | | 4,323 | |
| | | | |
Net investment income (loss) | | | 19,869 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 20,633 | |
Futures contracts | | | 3,750 | |
Options written | | | 390 | |
Credit default swap contracts | | | 256 | |
Index swap contracts | | | 42 | |
Interest rate swap contracts | | | 2,457 | |
Foreign currency-related transactions | | | (957 | ) |
| | | | |
Net realized gain (loss) | | | 26,571 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 10,217 | |
Futures contracts | | | (1,182 | ) |
Options written | | | 494 | |
Credit default swap contracts | | | 983 | |
Index swap contracts | | | 12 | |
Interest rate swap contracts | | | (1,399 | ) |
Investment matured | | | 2,187 | |
Foreign currency-related transactions | | | 1,257 | |
Other investments | | | (976 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 11,593 | |
| | | | |
Net realized and unrealized gain (loss) | | | 38,164 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 58,033 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 311 |
Russell Investment Company
Russell Investment Grade Bond Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 19,869 | | | $ | 41,218 | |
Net realized gain (loss) | | | 26,571 | | | | 17,179 | |
Net change in unrealized appreciation (depreciation) | | | 11,593 | | | | (2,418 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 58,033 | | | | 55,979 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (68 | ) | | | (48 | ) |
Class C | | | (237 | ) | | | (560 | ) |
Class E | | | (494 | ) | | | (1,211 | ) |
Class I | | | (4,921 | ) | | | (10,765 | ) |
Class S | | | (8,309 | ) | | | (13,353 | ) |
Class Y | | | (7,827 | ) | | | (17,981 | ) |
From net realized gain | | | | | | | | |
Class A | | | (54 | ) | | | (37 | ) |
Class C | | | (346 | ) | | | (1,103 | ) |
Class E | | | (475 | ) | | | (1,453 | ) |
Class I | | | (3,998 | ) | | | (12,808 | ) |
Class S | | | (7,242 | ) | | | (13,794 | ) |
Class Y | | | (6,289 | ) | | | (19,331 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (40,260 | ) | | | (92,444 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 115,192 | | | | 95,402 | |
Fund Reimbursements | | | — | | | | 191 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 132,965 | | | | 59,128 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,719,767 | | | | 1,660,639 | |
| | | | | | | | |
End of period | | $ | 1,852,732 | | | $ | 1,719,767 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 2,883 | | | $ | 4,870 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 312 | | | Russell Investment Grade Bond Fund |
(This page intentionally left blank)
Russell Investment Company
Russell Investment Grade Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.31 | | | | .21 | | | | .47 | | | | .68 | | | | (.24 | ) | | | (.24 | ) |
October 31, 2011 | | | 22.85 | | | | .47 | | | | .21 | | | | .68 | | | | (.53 | ) | | | (.69 | ) |
October 31, 2010(5) | | | 21.87 | | | | .14 | | | | 1.00 | | | | 1.14 | | | | (.16 | ) | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.20 | | | | .13 | | | | .48 | | | | .61 | | | | (.16 | ) | | | (.24 | ) |
October 31, 2011 | | | 22.74 | | | | .32 | | | | .19 | | | | .51 | | | | (.36 | ) | | | (.69 | ) |
October 31, 2010 | | | 21.31 | | | | .36 | | | | 1.61 | | | | 1.97 | | | | (.45 | ) | | | (.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(5) | | | 20.76 | | | | .08 | | | | (.08 | ) | | | — | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.28 | | | | .22 | | | | .47 | | | | .69 | | | | (.24 | ) | | | (.24 | ) |
October 31, 2011 | | | 22.82 | | | | .51 | | | | .18 | | | | .69 | | | | (.54 | ) | | | (.69 | ) |
October 31, 2010 | | | 21.38 | | | | .55 | | | | 1.62 | | | | 2.17 | | | | (.64 | ) | | | (.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 | ) | | | — | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.29 | | | | .25 | | | | .47 | | | | .72 | | | | (.27 | ) | | | (.24 | ) |
October 31, 2011 | | | 22.83 | | | | .56 | | | | .19 | | | | .75 | | | | (.60 | ) | | | (.69 | ) |
October 31, 2010 | | | 21.39 | | | | .60 | | | | 1.62 | | | | 2.22 | | | | (.69 | ) | | | (.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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.27 | | | | .24 | | | | .48 | | | | .72 | | | | (.27 | ) | | | (.24 | ) |
October 31, 2011 | | | 22.81 | | | | .54 | | | | .19 | | | | .73 | | | | (.58 | ) | | | (.69 | ) |
October 31, 2010 | | | 21.38 | | | | .54 | | | | 1.65 | | | | 2.19 | | | | (.67 | ) | | | (.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(2) | | | 20.75 | | | | .01 | | | | — | | | | .01 | | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.30 | | | | .26 | | | | .47 | | | | .73 | | | | (.28 | ) | | | (.24 | ) |
October 31, 2011 | | | 22.84 | | | | .59 | | | | .18 | | | | .77 | | | | (.62 | ) | | | (.69 | ) |
October 31, 2010 | | | 21.40 | | | | .59 | | | | 1.64 | | | | 2.23 | | | | (.70 | ) | | | (.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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 314 | | | Russell Investment Grade Bond Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.48 | ) | | 22.51 | | | 3.11 | | | | 8,347 | | | | .79 | | | | .79 | | | | 1.88 | | | | 103 | |
| | (1.22 | ) | | 22.31 | | | 3.27 | | | | 3,966 | | | | .80 | | | | .80 | | | | 2.14 | | | | 187 | |
| | (.16 | ) | | 22.85 | | | 5.20 | | | | 1,002 | | | | .81 | | | | .81 | | | | 1.55 | | | | 157 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.40 | ) | | 22.41 | | | 2.77 | | | | 34,970 | | | | 1.54 | | | | 1.54 | | | | 1.19 | | | | 103 | |
| | (1.05 | ) | | 22.20 | | | 2.42 | | | | 32,369 | | | | 1.55 | | | | 1.55 | | | | 1.48 | | | | 187 | |
| | (.54 | ) | | 22.74 | | | 9.48 | | | | 38,798 | | | | 1.54 | | | | 1.54 | | | | 1.66 | | | | 157 | |
| | (.71 | ) | | 21.31 | | | 18.25 | | | | 34,706 | | | | 1.55 | | | | 1.55 | | | | 3.37 | | | | 87 | |
| | (.80 | ) | | 18.68 | | | (6.47 | ) | | | 29,741 | | | | 1.63 | | | | 1.60 | | | | 3.54 | | | | 105 | |
| | — | | | 20.76 | | | — | | | | 35,689 | | | | 1.62 | | | | 1.60 | | | | 4.21 | | | | 199 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.48 | ) | | 22.49 | | | 3.13 | | | | 42,121 | | | | .79 | | | | .73 | | | | 2.01 | | | | 103 | |
| | (1.23 | ) | | 22.28 | | | 3.31 | | | | 45,365 | | | | .80 | | | | .72 | | | | 2.32 | | | | 187 | |
| | (.73 | ) | | 22.82 | | | 10.38 | | | | 54,743 | | | | .79 | | | | .68 | | | | 2.50 | | | | 157 | |
| | (.83 | ) | | 21.38 | | | 19.38 | | | | 43,414 | | | | .80 | | | | .67 | | | | 4.25 | | | | 87 | |
| | (.99 | ) | | 18.70 | | | (5.57 | ) | | | 48,193 | | | | .71 | | | | .67 | | | | 4.48 | | | | 105 | |
| | (.99 | ) | | 20.77 | | | 4.64 | | | | 53,663 | | | | .67 | | | | .65 | | | | 4.76 | | | | 199 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.51 | ) | | 22.50 | | | 3.31 | | | | 422,837 | | | | .46 | | | | .46 | | | | 2.27 | | | | 103 | |
| | (1.29 | ) | | 22.29 | | | 3.57 | | | | 380,063 | | | | .47 | | | | .47 | | | | 2.57 | | | | 187 | |
| | (.78 | ) | | 22.83 | | | 10.64 | | | | 428,647 | | | | .46 | | | | .44 | | | | 2.76 | | | | 157 | |
| | (.87 | ) | | 21.39 | | | 19.61 | | | | 392,070 | | | | .47 | | | | .42 | | | | 4.49 | | | | 87 | |
| | (1.04 | ) | | 18.69 | | | (5.29 | ) | | | 406,332 | | | | .44 | | | | .41 | | | | 4.74 | | | | 105 | |
| | (1.04 | ) | | 20.76 | | | 4.85 | | | | 698,651 | | | | .42 | | | | .40 | | | | 4.99 | | | | 199 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.51 | ) | | 22.48 | | | 3.23 | | | | 729,129 | | | | .54 | | | | .54 | | | | 2.19 | | | | 103 | |
| | (1.27 | ) | | 22.27 | | | 3.50 | | | | 657,013 | | | | .55 | | | | .55 | | | | 2.44 | | | | 187 | |
| | (.76 | ) | | 22.81 | | | 10.55 | | | | 456,448 | | | | .54 | | | | .54 | | | | 2.43 | | | | 157 | |
| | (.85 | ) | | 21.38 | | | 19.50 | | | | 125,051 | | | | .55 | | | | .55 | | | | 4.37 | | | | 87 | |
| | (1.01 | ) | | 18.69 | | | (5.46 | ) | | | 133,108 | | | | .57 | | | | .54 | | | | 4.61 | | | | 105 | |
| | — | | | 20.76 | | | .05 | | | | 226,995 | | | | .55 | | | | .53 | | | | 5.30 | | | | 199 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.52 | ) | | 22.51 | | | 3.31 | | | | 615,328 | | | | .37 | | | | .36 | | | | 2.37 | | | | 103 | |
| | (1.31 | ) | | 22.30 | | | 3.67 | | | | 600,991 | | | | .37 | | | | .37 | | | | 2.66 | | | | 187 | |
| | (.79 | ) | | 22.84 | | | 10.77 | | | | 681,001 | | | | .36 | | | | .36 | | | | 2.70 | | | | 157 | |
| | (.88 | ) | | 21.40 | | | 19.63 | | | | 364,142 | | | | .38 | | | | .38 | | | | 4.55 | | | | 87 | |
| | (1.05 | ) | | 18.70 | | | (5.24 | ) | | | 480,605 | | | | .40 | | | | .37 | | | | 4.78 | | | | 105 | |
| | (1.05 | ) | | 20.77 | | | 4.90 | | | | 609,683 | | | | .38 | | | | .36 | | | | 5.04 | | | | 199 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Investment Grade Bond Fund | | 315 |
Russell Investment Company
Russell Short Duration Bond Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,022.34 | | | $ | 1,020.54 | |
Expenses Paid During Period* | | $ | 4.37 | | | $ | 4.37 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.87% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,018.82 | | | $ | 1,016.81 | |
Expenses Paid During Period* | | $ | 8.13 | | | $ | 8.12 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.62% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,022.80 | | | $ | 1,020.54 | |
Expenses Paid During Period* | | $ | 4.38 | | | $ | 4.37 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.87% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,023.89 | | | $ | 1,021.78 | |
Expenses Paid During Period* | | $ | 3.12 | | | $ | 3.12 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.62% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 316 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,024.82 | | | $ | 1,022.28 | |
Expenses Paid During Period* | | $ | 2.62 | | | $ | 2.61 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.52% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Short Duration Bond Fund | | 317 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Long-Term Investments - 101.7% | |
| Asset-Backed Securities - 8.0% | |
Ally Master Owner Trust
Series 2010-2 Class A
4.250% due 04/15/17 (Þ) | | | 3,000 | | | | 3,235 | |
Series 2011-1 Class A2
2.150% due 01/15/16 | | | 5,250 | | | | 5,359 | |
Series 2011-3 Class A2
1.810% due 05/15/16 | | | 985 | | | | 1,000 | |
Series 2012-1 Class A2
1.440% due 02/15/17 | | | 1,720 | | | | 1,727 | |
AmeriCredit Automobile Receivables Trust
Series 2010-1 Class B
3.720% due 11/17/14 | | | 1,440 | | | | 1,463 | |
Series 2010-4 Class A2
0.960% due 05/08/14 | | | 422 | | | | 422 | |
Series 2010-4 Class B
1.990% due 10/08/15 | | | 1,435 | | | | 1,448 | |
Series 2011-2 Class A3
1.610% due 10/08/15 | | | 2,525 | | | | 2,547 | |
Series 2011-3 Class B
2.280% due 06/08/16 | | | 1,670 | | | | 1,698 | |
Series 2011-4 Class A3
1.170% due 05/09/16 | | | 4,800 | | | | 4,810 | |
Asset Backed Securities Corp. Home Equity
Series 2002-HE1 Class M1
1.890% due 03/15/32 (Ê) | | | 416 | | | | 299 | |
Series 2004-HE6 Class A1
0.514% due 09/25/34 (Ê) | | | 160 | | | | 143 | |
Atlantic City Electric Transition Funding LLC
Series 2003-1 Class A2
4.460% due 10/20/16 | | | 715 | | | | 749 | |
Bank of America Auto Trust
Series 2009-3A Class A3
1.670% due 12/15/13 (Þ) | | | 46 | | | | 46 | |
Bear Stearns Asset Backed Securities Trust
Series 2007-HE7 Class 1A1
1.239% due 10/25/37 (Ê) | | | 417 | | | | 267 | |
Capital One Multi-Asset Execution Trust
Series 2005-A10 Class A
0.320% due 09/15/15 (Ê) | | | 1,365 | | | | 1,364 | |
Series 2005-B1 Class B1
4.900% due 12/15/17 | | | 820 | | | | 893 | |
CarMax Auto Owner Trust
Series 2010-1 Class A3
1.560% due 07/15/14 | | | 478 | | | | 480 | |
Centex Home Equity
Series 2003-C Class AF4
5.460% due 04/25/32 | | | 104 | | | | 103 | |
Chase Issuance Trust
Series 2005-C2 Class C2
0.680% due 01/15/15 (Ê) | | | 1,785 | | | | 1,785 | |
Series 2007-A9 Class A9
0.270% due 06/16/14 (Ê) | | | 3,700 | | | | 3,700 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
CIT Marine Trust
Series 1999-A Class A4
6.250% due 11/15/19 | | | 63 | | | | 65 | |
Citibank Omni Master Trust
Series 2009-A8 Class A8
2.340% due 05/16/16 (Ê)(Þ) | | | 3,700 | | | | 3,703 | |
Countrywide Asset-Backed Certificates
Series 2001-BC3 Class A
0.719% due 12/25/31 (Ê) | | | 61 | | | | 33 | |
Series 2005-1 Class AF4
5.147% due 07/25/35 | | | 262 | | | | 242 | |
Series 2005-4 Class AF3
4.456% due 10/25/35 | | | 31 | | | | 29 | |
Series 2005-17 Class 4A2A
0.499% due 05/25/36 (Ê) | | | 389 | | | | 373 | |
Series 2006-3 Class 2A2
0.419% due 06/25/36 (Ê) | | | 226 | | | | 186 | |
Series 2007-4 Class A2
5.530% due 09/25/37 | | | 360 | | | | 321 | |
Discover Card Master Trust I
Series 2007-3 Class B2
0.420% due 10/16/14 (Ê) | | | 1,240 | | | | 1,240 | |
DT Auto Owner Trust
Series 2009-1 Class A1
2.980% due 10/15/15 (Þ) | | | 280 | | | | 281 | |
Series 2011-2A Class A
0.960% due 01/15/14 (Þ) | | | 439 | | | | 439 | |
Series 2011-2A Class B
2.120% due 02/16/16 (Þ) | | | 2,045 | | | | 2,047 | |
Series 2011-3A Class A
1.400% due 08/15/14 (Þ) | | | 941 | | | | 942 | |
Educational Services of America, Inc.
Series 2012-1 Class A1
1.685% due 09/25/40 (Ê)(Å) | | | 1,500 | | | | 1,500 | |
Equity One ABS, Inc.
Series 2003-4 Class M1
5.369% due 10/25/34 | | | 415 | | | | 249 | |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2000-30 Class A5
6.602% due 12/25/30 | | | 2,220 | | | | 2,411 | |
Ford Credit Floorplan Master Owner Trust
Series 2010-5 Class A1
1.500% due 09/15/15 | | | 1,880 | | | | 1,896 | |
Fremont Home Loan Trust
Series 2006-E Class 2A1
0.299% due 01/25/37 (Ê) | | | 14 | | | | 14 | |
GE-WMC Mortgage Securities LLC
Series 2006-1 Class A2A
0.279% due 08/25/36 (Ê) | | | 11 | | | | 3 | |
GSAMP Trust
Series 2007-FM1 Class A2A
0.309% due 12/25/36 (Ê) | | | 95 | | | | 63 | |
Harley-Davidson Motorcycle Trust
Series 2007-2 Class A4
5.120% due 08/15/13 | | | 4 | | | | 4 | |
Series 2007-3 Class A4
5.520% due 11/15/13 | | | 81 | | | | 81 | |
| | | | |
| | 318 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Honda Auto Receivables Owner Trust
Series 2011-2 Class A3
0.940% due 03/18/15 | | | 680 | | | | 683 | |
HSBC Home Equity Loan Trust
Series 2005-1 Class A
0.530% due 01/20/34 (Ê) | | | 188 | | | | 172 | |
JPMorgan Auto Receivables Trust
Series 2008-A Class A4
5.220% due 07/15/15 (Þ) | | | 1,249 | | | | 1,257 | |
Long Beach Mortgage Loan Trust
Series 2004-4 Class 1A1
0.799% due 10/25/34 (Ê) | | | 20 | | | | 16 | |
Long Grove CLO, Ltd.
Series 2004-1A Class A
0.871% due 05/25/16 (Ê)(Þ) | | | 854 | | | | 851 | |
Marriott Vacation Club Owner Trust
Series 2006-1A Class D
6.502% due 04/20/28 (Þ) | | | 121 | | | | 123 | |
Massachusetts Educational Financing Authority
Series 2008-1 Class A1
1.416% due 04/25/38 (Ê) | | | 1,154 | | | | 1,152 | |
Mercedes-Benz Auto Lease Trust
Series 2011-B Class A4
1.240% due 07/17/17 (Þ) | | | 3,055 | | | | 3,077 | |
Porsche Innovative Lease Owner Trust
Series 2011-1 Class A4
1.260% due 11/20/17 (Þ) | | | 2,000 | | | | 2,017 | |
Prestige Auto Receivables Trust
Series 2011-1A Class A3
1.900% due 08/17/15 (Þ) | | | 1,385 | | | | 1,391 | |
Renaissance Home Equity Loan Trust
Series 2005-4 Class A3
5.565% due 02/25/36 | | | 112 | | | | 95 | |
Series 2007-2 Class AF2
5.675% due 06/25/37 | | | 355 | | | | 147 | |
Santander Drive Auto Receivables Trust
Series 2010-1 Class A3
1.840% due 11/17/14 | | | 3,254 | | | | 3,279 | |
Series 2010-2 Class A2
0.950% due 08/15/13 | | | 412 | | | | 413 | |
Series 2010-2 Class B
2.240% due 12/15/14 | | | 450 | | | | 453 | |
Series 2010-A Class A2
1.370% due 08/15/13 (Þ) | | | 173 | | | | 173 | |
Series 2010-B Class A2
1.010% due 07/15/13 (Þ) | | | 462 | | | | 462 | |
Series 2011-1 Class A2
0.940% due 02/18/14 | | | 880 | | | | 879 | |
Series 2011-1 Class A3
1.280% due 01/15/15 | | | 1,240 | | | | 1,245 | |
Series 2011-1 Class B
2.350% due 11/16/15 | | | 2,040 | | | | 2,060 | |
Series 2011-2 Class B
2.660% due 01/15/16 | | | 755 | | | | 759 | |
Series 2011-3 Class B
2.500% due 12/15/15 | | | 2,180 | | | | 2,207 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2012-1 Class B
2.720% due 05/16/16 | | | 1,680 | | | | 1,709 | |
SLM Student Loan Trust
Series 2003-12 Class A4
0.664% due 12/17/18 (Ê) | | | 203 | | | | 203 | |
Series 2003-7A Class A5A
1.674% due 12/15/33 (Ê)(Þ) | | | 598 | | | | 589 | |
Series 2008-7 Class A2
0.966% due 10/25/17 (Ê) | | | 2,303 | | | | 2,296 | |
Series 2011-A Class A1
1.240% due 10/15/24 (Ê)(Þ) | | | 2,825 | | | | 2,825 | |
Series 2011-A Class A2
4.370% due 04/17/28 (Þ) | | | 715 | | | | 747 | |
Series 2011-B Class A2
3.740% due 02/15/29 (Þ) | | | 1,765 | | | | 1,780 | |
Series 2012-A Class A2
3.830% due 01/17/45 (Þ) | | | 2,185 | | | | 2,215 | |
Series 2012-B Class A1
1.340% due 12/15/21 (Ê)(Þ) | | | 600 | | | | 601 | |
Series 2012-B Class A2
3.480% due 10/15/30 (Å) | | | 950 | | | | 955 | |
Small Business Administration Participation Certificates
Series 2009-20D Class 1
4.310% due 04/01/29 | | | 447 | | | | 490 | |
South Carolina Student Loan Corp.
Series 2008-1 Class A2
1.038% due 03/01/18 (Ê) | | | 399 | | | | 399 | |
Series 2008-1 Class A3
1.238% due 03/02/20 (Ê) | | | 700 | | | | 692 | |
Series 2008-1 Class A4
1.488% due 09/03/24 (Ê) | | | 400 | | | | 394 | |
| | | | | | | | |
| | | | | | | 88,466 | |
| | | | | | | | |
|
| Corporate Bonds and Notes - 11.9% | |
Ally Financial, Inc.
3.874% due 06/20/14 (Ê) | | | 300 | | | | 296 | |
American Express Credit Corp.
2.375% due 03/24/17 | | | 1,080 | | | | 1,101 | |
American International Group, Inc.
4.250% due 05/15/13 | | | 500 | | | | 510 | |
4.875% due 09/15/16 | | | 1,570 | | | | 1,674 | |
8.250% due 08/15/18 | | | 100 | | | | 121 | |
Amgen, Inc.
2.500% due 11/15/16 | | | 1,885 | | | | 1,950 | |
Anheuser-Busch InBev Worldwide, Inc.
Series FRN
1.016% due 01/27/14 (Ê) | | | 2,100 | | | | 2,113 | |
AT&T, Inc.
2.950% due 05/15/16 | | | 630 | | | | 669 | |
Bank of America Corp.
1.886% due 01/30/14 (Ê) | | | 1,800 | | | | 1,768 | |
7.375% due 05/15/14 | | | 500 | | | | 542 | |
4.750% due 08/01/15 | | | 1,760 | | | | 1,837 | |
Bank of America NA
Series BKNT
6.100% due 06/15/17 | | | 380 | | | | 406 | |
| | |
| Russell Short Duration Bond Fund | | 319 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
BB&T Corp.
2.150% due 03/22/17 | | | 1,195 | | | | 1,200 | |
Bear Stearns Cos. LLC (The)
5.550% due 01/22/17 | | | 3,030 | | | | 3,359 | |
Black & Decker Corp.
8.950% due 04/15/14 | | | 1,020 | | | | 1,165 | |
Boston Scientific Corp.
4.500% due 01/15/15 | | | 860 | | | | 924 | |
Cameron International Corp.
1.414% due 06/02/14 (Ê) | | | 500 | | | | 501 | |
Capital One Financial Corp.
2.150% due 03/23/15 | | | 1,185 | | | | 1,193 | |
Case New Holland, Inc.
7.750% due 09/01/13 | | | 450 | | | | 480 | |
Caterpillar, Inc.
0.663% due 05/21/13 (Ê) | | | 1,800 | | | | 1,806 | |
CenterPoint Energy Houston Electric LLC Series U
7.000% due 03/01/14 | | | 547 | | | | 605 | |
Cintas Corp. No. 2
2.850% due 06/01/16 | | | 1,105 | | | | 1,152 | |
Citigroup, Inc.
4.450% due 01/10/17 | | | 2,390 | | | | 2,497 | |
Commonwealth Edison Co.
1.625% due 01/15/14 | | | 855 | | | | 868 | |
Continental Airlines 2006-1 Class G
Pass Through Trust
Series 061G
0.834% due 06/02/13 (Ê) | | | 579 | | | | 558 | |
CVS Caremark Corp.
3.250% due 05/18/15 | | | 890 | | | | 947 | |
Daimler Finance NA LLC
1.674% due 09/13/13 (Ê)(Þ) | | | 400 | | | | 403 | |
Devon Energy Corp.
5.625% due 01/15/14 | | | 615 | | | | 665 | |
DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
3.500% due 03/01/16 | | | 2,125 | | | | 2,243 | |
Discover Financial Services
10.250% due 07/15/19 | | | 745 | | | | 1,014 | |
5.200% due 04/27/22 (Þ) | | | 745 | | | | 739 | |
Dr Pepper Snapple Group, Inc.
6.120% due 05/01/13 | | | 500 | | | | 526 | |
Duke Energy Carolinas LLC
1.750% due 12/15/16 | | | 1,530 | | | | 1,564 | |
4.300% due 06/15/20 | | | 710 | | | | 806 | |
E*Trade Financial Corp.
12.500% due 11/30/17 | | | 868 | | | | 1,011 | |
El Paso Pipeline Partners Operating Co. LLC
6.500% due 04/01/20 | | | 300 | | | | 345 | |
Express Scripts Holding Co.
6.250% due 06/15/14 | | | 1,305 | | | | 1,435 | |
First Horizon National Corp.
5.375% due 12/15/15 | | | 500 | | | | 533 | |
FirstEnergy Solutions Corp.
4.800% due 02/15/15 | | | 655 | | | | 707 | |
Florida Gas Transmission Co. LLC
4.000% due 07/15/15 (Þ) | | | 500 | | | | 528 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Ford Motor Credit Co. LLC
8.700% due 10/01/14 | | | 400 | | | | 458 | |
7.000% due 04/15/15 | | | 200 | | | | 223 | |
Freeport-McMoRan Copper & Gold, Inc.
1.400% due 02/13/15 | | | 1,745 | | | | 1,744 | |
FUEL Trust
3.984% due 06/15/16 (Þ) | | | 1,600 | | | | 1,657 | |
General Electric Capital Corp.
Series MTNA
0.734% due 09/15/14 (Ê) | | | 2,525 | | | | 2,496 | |
Gilead Sciences, Inc.
3.050% due 12/01/16 | | | 1,385 | | | | 1,464 | |
Goldman Sachs Group, Inc. (The)
3.300% due 05/03/15 | | | 300 | | | | 300 | |
3.700% due 08/01/15 | | | 2,035 | | | | 2,068 | |
Goodrich Corp.
6.290% due 07/01/16 | | | 1,215 | | | | 1,440 | |
Hartford Financial Services Group, Inc.
4.000% due 10/15/17 | | | 1,705 | | | | 1,708 | |
Hewlett-Packard Co.
0.772% due 05/24/13 (Ê) | | | 2,100 | | | | 2,094 | |
2.600% due 09/15/17 | | | 1,745 | | | | 1,748 | |
HSBC USA, Inc.
2.375% due 02/13/15 | | | 970 | | | | 981 | |
Humana, Inc.
6.450% due 06/01/16 | | | 383 | | | | 438 | |
International Lease Finance Corp.
6.500% due 09/01/14 (Þ) | | | 4,715 | | | | 5,010 | |
4.875% due 04/01/15 | | | 1,430 | | | | 1,430 | |
John Deere Capital Corp.
4.900% due 09/09/13 | | | 980 | | | | 1,037 | |
JPMorgan Chase & Co.
3.150% due 07/05/16 | | | 3,000 | | | | 3,109 | |
Series 1 | | | | | | | | |
7.900% due 04/29/49 (Æ)(ƒ) | | | 275 | | | | 301 | |
JPMorgan Chase Bank NA
0.804% due 06/13/16 (Ê) | | | 1,400 | | | | 1,308 | |
Kraft Foods, Inc.
2.625% due 05/08/13 | | | 2,700 | | | | 2,749 | |
4.125% due 02/09/16 | | | 880 | | | | 962 | |
Lehman Brothers Holdings Capital
Trust VII
5.857% due 11/29/49 (ƒ)(Ø) | | | 270 | | | | — | |
Lowe’s Cos., Inc.
1.625% due 04/15/17 | | | 700 | | | | 700 | |
MassMutual Global Funding II
2.000% due 04/05/17 (Þ) | | | 1,090 | | | | 1,095 | |
Medco Health Solutions, Inc.
7.250% due 08/15/13 | | | 770 | | | | 834 | |
Medtronic, Inc.
3.000% due 03/15/15 | | | 1,230 | | | | 1,311 | |
Merrill Lynch & Co., Inc.
6.400% due 08/28/17 | | | 1,255 | | | | 1,357 | |
MetLife Institutional Funding II
1.368% due 04/04/14 (Ê)(Þ) | | | 1,600 | | | | 1,606 | |
Metropolitan Life Global Funding I
3.125% due 01/11/16 (Þ) | | | 2,345 | | | | 2,463 | |
| | | | |
| | 320 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
MGM Resorts International
13.000% due 11/15/13 | | | 4,400 | | | | 5,104 | |
Morgan Stanley
6.625% due 04/01/18 | | | 1,525 | | | | 1,594 | |
Series GMTN
3.006% due 05/14/13 (Ê) | | | 2,900 | | | | 2,905 | |
0.769% due 01/09/14 (Ê) | | | 2,215 | | | | 2,106 | |
National Rural Utilities Cooperative Finance Corp.
1.900% due 11/01/15 | | | 1,505 | | | | 1,550 | |
NB Capital Trust IV
8.250% due 04/15/27 | | | 360 | | | | 364 | |
NII Capital Corp.
7.625% due 04/01/21 | | | 895 | | | | 832 | |
PACCAR, Inc.
6.875% due 02/15/14 | | | 700 | | | | 776 | |
PC Financial Partnership
5.000% due 11/15/14 | | | 900 | | | | 985 | |
Philip Morris International, Inc.
5.650% due 05/16/18 | | | 1,175 | | | | 1,406 | |
Phillips 66
2.950% due 05/01/17 (Þ) | | | 1,065 | | | | 1,093 | |
Pricoa Global Funding I
0.673% due 09/27/13 (Ê)(Þ) | | | 200 | | | | 198 | |
Quebecor World Capital Corp.
6.125% due 11/15/13 (Ø) | | | 70 | | | | — | |
4.875% due 01/02/49 (Ø) | | | 205 | | | | — | |
QVC, Inc.
7.500% due 10/01/19 (Þ) | | | 1,020 | | | | 1,122 | |
Qwest Corp.
3.724% due 06/15/13 (Ê) | | | 200 | | | | 203 | |
Regions Financial Corp.
7.750% due 11/10/14 | | | 100 | | | | 110 | |
Rockies Express Pipeline LLC
6.850% due 07/15/18 (Þ) | | | 240 | | | | 235 | |
SLM Corp.
6.250% due 01/25/16 | | | 2,700 | | | | 2,781 | |
Series BEd
5.175% due 06/15/13 (Ê) | | | 250 | | | | 250 | |
Southern Copper Corp.
6.375% due 07/27/15 | | | 300 | | | | 339 | |
SSIF Nevada, LP
1.167% due 04/14/14 (Ê)(Þ) | | | 3,700 | | | | 3,672 | |
Staples, Inc.
9.750% due 01/15/14 | | | 1,530 | | | | 1,734 | |
TD Ameritrade Holding Corp.
4.150% due 12/01/14 | | | 1,690 | | | | 1,805 | |
Textron, Inc.
6.200% due 03/15/15 | | | 730 | | | | 801 | |
Union Pacific Corp.
5.375% due 05/01/14 | | | 1,000 | | | | 1,088 | |
Verizon Communications, Inc.
3.000% due 04/01/16 | | | 1,355 | | | | 1,445 | |
Series FRN | | | | | | | | |
1.083% due 03/28/14 (Ê) | | | 1,300 | | | | 1,313 | |
Wachovia Corp.
5.500% due 05/01/13 | | | 1,935 | | | | 2,025 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Watson Pharmaceuticals, Inc.
5.000% due 08/15/14 | | | 525 | | | | 562 | |
Wells Fargo & Co.
2.625% due 12/15/16 | | | 1,330 | | | | 1,375 | |
Williams Partners, LP/Williams Partners Finance Corp.
7.250% due 02/01/17 | | | 1,365 | | | | 1,655 | |
WM Wrigley Jr Co.
3.050% due 06/28/13 (Þ) | | | 400 | | | | 406 | |
Yum! Brands, Inc.
4.250% due 09/15/15 | | | 1,570 | | | | 1,707 | |
ZFS Finance USA Trust II
6.450% due 12/15/65 (Þ) | | | 1,630 | | | | 1,597 | |
| | | | | | | | |
| | | | | | | 131,990 | |
| | | | | | | | |
|
| International Debt - 12.6% | |
Abu Dhabi National Energy Co.
4.125% due 03/13/17 (Þ) | | | 920 | | | | 945 | |
AK Transneft OJSC Via TransCapitalInvest, Ltd.
7.700% due 08/07/13 (Þ) | | | 1,100 | | | | 1,175 | |
American International Group, Inc.
0.921% due 07/19/13 (Ê) | | | 2,900 | | | | 3,762 | |
Series MPLE
4.900% due 06/02/14 | | | 3,000 | | | | 3,098 | |
ANZ National International, Ltd.
6.200% due 07/19/13 (Þ) | | | 200 | | | | 211 | |
ArcelorMittal
4.500% due 02/25/17 | | | 1,155 | | | | 1,163 | |
6.250% due 02/25/22 | | | 420 | | | | 428 | |
Babson CLO, Ltd.
Series 2004-2A Class A2A
0.823% due 11/15/16 (Ê)(Þ) | | | 508 | | | | 504 | |
Banco Bradesco SA
2.598% due 05/16/14 (Ê)(Þ) | | | 2,100 | | | | 2,105 | |
Banco do Brasil SA
4.500% due 01/22/15 (Þ) | | | 300 | | | | 313 | |
Banco do Nordeste do Brasil SA
3.625% due 11/09/15 (Þ) | | | 600 | | | | 605 | |
Banco Mercantil del Norte SA
4.375% due 07/19/15 (Þ) | | | 500 | | | | 517 | |
Banco Santander Chile
3.750% due 09/22/15 (Þ) | | | 1,000 | | | | 1,022 | |
Bank of Ceylon
6.875% due 05/03/17 (Å) | | | 600 | | | | 606 | |
Bank of Montreal
2.500% due 01/11/17 | | | 1,120 | | | | 1,150 | |
Bank of Nova Scotia
2.550% due 01/12/17 | | | 590 | | | | 613 | |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 3.850% due 01/22/15 (Þ) | | | 600 | | | | 637 | |
Banque PSA Finance SA
Series 144a
2.368% due 04/04/14 (Ê)(Þ) | | | 800 | | | | 773 | |
BNP Paribas SA
Series BKNT
1.369% due 01/10/14 (Ê) | | | 1,300 | | | | 1,271 | |
| | |
| Russell Short Duration Bond Fund | | 321 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
BPCE SA
2.375% due 10/04/13 (Þ) | | | 100 | | | | 98 | |
Braskem Finance, Ltd.
5.750% due 04/15/21 (Þ) | | | 300 | | | | 312 | |
Central American Bank for Economic Integration
5.375% due 09/24/14 (Þ) | | | 700 | | | | 749 | |
Commonwealth Bank of Australia
0.889% due 07/12/13 (Ê)(Þ) | | | 4,600 | | | | 4,621 | |
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrect
3.375% due 01/19/17 | | | 815 | | | | 841 | |
Corp. Andina de Fomento
8.125% due 06/04/19 | | | 710 | | | | 888 | |
Credit Agricole Home Loan SFH
1.216% due 07/21/14 (Ê)(Þ) | | | 1,800 | | | | 1,765 | |
Credit Agricole SA
1.916% due 01/21/14 (Ê)(Þ) | | | 1,600 | | | | 1,565 | |
DanFin Funding, Ltd.
1.167% due 07/16/13 (Ê)(Þ) | | | 3,000 | | | | 3,012 | |
Deutsche Telekom International
Finance BV
5.250% due 07/22/13 | | | 2,000 | | | | 2,100 | |
Dexia Credit Local SA
0.946% due 04/29/14 (Ê)(Þ) | | | 1,400 | | | | 1,308 | |
Digicel Group, Ltd.
8.875% due 01/15/15 (Þ) | | | 190 | | | | 191 | |
9.125% due 01/15/15 (Þ) | | | 1,280 | | | | 1,288 | |
Series REGS
8.875% due 01/15/15 | | | 335 | | | | 337 | |
Dryden Leveraged Loan CDO 2002-II
Series 2005-8A Class A
0.743% due 05/22/17 (Ê)(Þ) | | | 854 | | | | 831 | |
Eksportfinans ASA
2.375% due 05/25/16 | | | 1,740 | | | | 1,552 | |
Export-Import Bank of Korea
2.274% due 03/21/15 (Ê)(Å) | | | 1,600 | | | | 1,593 | |
FIH Erhvervsbank A/S
0.844% due 06/13/13 (Ê) | | | 4,900 | | | | 4,900 | |
Gazprom OAO Via Gaz Capital SA
7.510% due 07/31/13 (Þ) | | | 600 | | | | 638 | |
Goldman Sachs Group, Inc. (The)
6.125% due 02/14/17 | | | 100 | | | | 170 | |
Gulf Stream Compass CLO, Ltd.
Series 2006-2A Class A2
0.726% due 01/24/20 (Ê)(Å) | | | 3,959 | | | | 3,857 | |
Hutchison Whampoa International
09/19, Ltd.
5.750% due 09/11/19 (Þ) | | | 685 | | | | 773 | |
Hutchison Whampoa International 11, Ltd.
3.500% due 01/13/17 (Þ) | | | 1,500 | | | | 1,545 | |
Hydro Quebec
2.000% due 06/30/16 | | | 3,900 | | | | 4,028 | |
Industrial Bank of Korea
3.750% due 09/29/16 (Þ) | | | 1,900 | | | | 1,952 | |
ING Bank NV
3.900% due 03/19/14 (Þ) | | | 300 | | | | 316 | |
1.875% due 06/09/14 (Ê)(Þ) | | | 400 | | | | 396 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Intesa Sanpaolo SpA
2.892% due 02/24/14 (Ê)(Þ) | | | 700 | | | | 681 | |
Korea Development Bank (The)
8.000% due 01/23/14 | | | 600 | | | | 658 | |
3.250% due 03/09/16 | | | 1,800 | | | | 1,827 | |
3.500% due 08/22/17 | | | 1,100 | | | | 1,122 | |
Korea Housing Finance Corp.
4.125% due 12/15/15 (Þ) | | | 700 | | | | 738 | |
Lloyds Banking Group PLC
5.920% due 12/31/49 (ƒ)(Þ) | | | 1,150 | | | | 707 | |
6.657% due 12/31/49 (ƒ)(Þ) | | | 1,065 | | | | 714 | |
Lloyds TSB Bank PLC
2.816% due 01/24/14 (Ê) | | | 1,900 | | | | 1,886 | |
4.200% due 03/28/17 | | | 840 | | | | 852 | |
Lukoil International Finance BV
6.125% due 11/09/20 (Þ) | | | 700 | | | | 743 | |
Montpelier Re Holdings, Ltd.
6.125% due 08/15/13 | | | 585 | | | | 607 | |
Morgan Stanley
Series GMTN
1.177% due 01/16/17 (Ê) | | | 200 | | | | 224 | |
National Australia Bank, Ltd.
1.189% due 04/11/14 (Ê)(Þ) | | | 2,800 | | | | 2,803 | |
Nordea Eiendomskreditt AS
0.889% due 04/07/14 (Ê)(Þ) | | | 1,300 | | | | 1,298 | |
Norske Skogindustrier ASA
6.125% due 10/15/15 (Þ) | | | 535 | | | | 377 | |
Oi SA
5.750% due 02/10/22 (Þ) | | | 995 | | | | 1,020 | |
Pernod-Ricard SA
2.950% due 01/15/17 (Þ) | | | 2,070 | | | | 2,106 | |
Petrobras International Finance Co. - Pifco
3.500% due 02/06/17 | | | 2,300 | | | | 2,364 | |
Petroleum Co. of Trinidad & Tobago, Ltd.
6.000% due 05/08/22 (Þ) | | | 2,625 | | | | 2,737 | |
Province of Ontario Canada
1.600% due 09/21/16 | | | 14,500 | | | | 14,672 | |
Qatar Government International Bond
3.125% due 01/20/17 (Þ) | | | 2,375 | | | | 2,449 | |
Qatari Diar Finance QSC
3.500% due 07/21/15 (Þ) | | | 1,400 | | | | 1,459 | |
Qtel International Finance, Ltd.
3.375% due 10/14/16 (Þ) | | | 2,800 | | | | 2,849 | |
RCI Banque SA
Series 144a
2.339% due 04/11/14 (Ê)(Þ) | | | 1,800 | | | | 1,744 | |
Russian Foreign Bond - Eurobond
3.250% due 04/04/17 (Þ) | | | 1,000 | | | | 1,014 | |
SABMiller PLC
5.500% due 08/15/13 (Þ) | | | 1,145 | | | | 1,207 | |
SLM Corp.
1.206% due 06/17/13 (Ê) | | | 100 | | | | 128 | |
SLM Student Loan Trust
Series 2004-5X Class A5
0.981% due 10/25/23 (Ê) | | | 1,800 | | | | 2,159 | |
SMART Trust
Series 2011-2USA Class A4A
2.310% due 04/14/17 (Þ) | | | 1,825 | | | | 1,851 | |
| | | | |
| | 322 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2011-4USA Class A3A
1.810% due 11/14/15 (Þ) | | | 3,000 | | | | 3,022 | |
Series 2012-1USA Class A4A
2.010% due 12/14/17 (Þ) | | | 3,650 | | | | 3,645 | |
Societe Financement de l’Economie Francaise | | | | | | | | |
3.375% due 05/05/14 (Þ) | | | 1,300 | | | | 1,353 | |
Tayarra, Ltd. | | | | | | | | |
3.628% due 02/15/22 | | | 861 | | | | 927 | |
Telefonos de Mexico SAB de CV | | | | | | | | |
5.500% due 01/27/15 | | | 845 | | | | 926 | |
5.500% due 11/15/19 | | | 1,725 | | | | 1,987 | |
Transocean, Inc.
5.050% due 12/15/16 | | | 825 | | | | 896 | |
Turkiye Vakiflar Bankasi Tao
5.750% due 04/24/17 (Å) | | | 2,100 | | | | 2,096 | |
Tyco International Finance SA
4.125% due 10/15/14 | | | 1,290 | | | | 1,382 | |
Vedanta Resources PLC
6.750% due 06/07/16 (Þ) | | | 535 | | | | 510 | |
VimpelCom Holdings BV
7.504% due 03/01/22 (Þ) | | | 1,200 | | | | 1,164 | |
Volvo Treasury AB
5.950% due 04/01/15 (Þ) | | | 1,135 | | | | 1,248 | |
Waha Aerospace BV
3.925% due 07/28/20 (Þ) | | | 1,530 | | | | 1,584 | |
Westpac Banking Corp.
1.200% due 03/31/14 (Ê)(Þ) | | | 1,400 | | | | 1,403 | |
Willis Group Holdings PLC
4.125% due 03/15/16 | | | 535 | | | | 560 | |
XL Group PLC
5.250% due 09/15/14 | | | 1,101 | | | | 1,167 | |
| | | | | | | | |
| | | | | | | 139,390 | |
| | | | | | | | |
| | |
| Loan Agreements - 0.0% | | | | | | | | |
Newsday LLC Term Loan B
10.500% due 08/01/13 | | | 275 | | | | 282 | |
| | | | | | | | |
| |
| Mortgage-Backed Securities - 49.1% | | | | | |
American Home Mortgage Investment Trust
Series 2004-3 Class 5A
2.563% due 10/25/34 (Ê) | | | 631 | | | | 582 | |
Series 2004-4 Class 4A
2.239% due 02/25/45 (Ê) | | | 229 | | | | 186 | |
Asset Securitization Corp.
Series 1997-D5 Class A3
7.203% due 02/14/43 | | | 107 | | | | 108 | |
Series 1997-D5 Class A5
7.273% due 02/14/43 | | | 535 | | | | 538 | |
Banc of America Funding Corp.
Series 2005-D Class A1
2.653% due 05/25/35 (Ê) | | | 3,376 | | | | 3,364 | |
Series 2006-A Class 1A1
2.653% due 02/20/36 (Ê) | | | 852 | | | | 775 | |
Series 2006-F Class 1A2
2.668% due 07/20/36 (Ê) | | | 72 | | | | 17 | |
Series 2006-I Class 5A1
5.960% due 10/20/46 (Ê) | | | 443 | | | | 360 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2002-2 Class F
5.487% due 07/11/43 | | | 1,505 | | | | 1,518 | |
Series 2002-PB2 Class A4
6.186% due 06/11/35 | | | 15 | | | | 15 | |
Series 2002-PB2 Class C
6.349% due 06/11/35 | | | 155 | | | | 155 | |
Series 2003-1 Class D
4.903% due 09/11/36 (Þ) | | | 460 | | | | 464 | |
Series 2003-1 Class SBB
5.860% due 03/11/32 (Þ) | | | 878 | | | | 907 | |
Series 2003-1 Class SBC
5.790% due 03/11/32 (Þ) | | | 971 | | | | 1,004 | |
Series 2003-1 Class SBE
6.770% due 03/11/32 (Þ) | | | 1,102 | | | | 1,151 | |
Series 2004-1 Class A4
4.760% due 11/10/39 | | | 300 | | | | 315 | |
Series 2005-1 Class A3
4.877% due 11/10/42 | | | 281 | | | | 280 | |
Series 2005-1 Class A4
5.241% due 11/10/42 | | | 1,815 | | | | 1,865 | |
Series 2005-3 Class A2
4.501% due 07/10/43 | | | 221 | | | | 221 | |
Series 2005-6 Class A3
5.366% due 09/10/47 | | | 880 | | | | 882 | |
Series 2006-1 Class A2
5.334% due 09/10/45 | | | 585 | | | | 590 | |
Series 2007-1 Class A2
5.381% due 01/15/49 | | | 57 | | | | 57 | |
Series 2007-2 Class AAB
5.768% due 04/10/49 | | | 460 | | | | 490 | |
Series 2007-3 Class A3
5.837% due 06/10/49 | | | 3,952 | | | | 4,017 | |
Banc of America Mortgage Securities, Inc.
Series 2004-2 Class 5A1
6.500% due 10/25/31 | | | 39 | | | | 40 | |
Series 2004-G Class 2A7
2.831% due 08/25/34 (Ê) | | | 1,591 | | | | 1,422 | |
Series 2004-I Class 2A2
2.746% due 10/25/34 (Ê) | | | 1,625 | | | | 1,521 | |
Bear Stearns Adjustable Rate Mortgage Trust
Series 2003-1 Class 5A1
5.577% due 04/25/33 (Ê) | | | 125 | | | | 122 | |
Series 2003-8 Class 2A1
2.921% due 01/25/34 (Ê) | | | 118 | | | | 115 | |
Series 2005-6 Class 1A1
2.739% due 08/25/35 (Ê) | | | 160 | | | | 107 | |
Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.817% due 05/25/35 (Ê) | | | 575 | | | | 453 | |
Series 2005-7 Class 22A1 2.824% due 09/25/35 (Ê) | | | 36 | | | | 24 | |
Bear Stearns Commercial Mortgage Securities
Series 1999-CLF1 Class A4
7.000% due 05/20/30 | | | 651 | | | | 723 | |
| | |
| Russell Short Duration Bond Fund | | 323 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2001-TOP2 Class D
6.940% due 02/15/35 (Þ) | | | 435 | | | | 430 | |
Series 2003-T12 Class A3
4.240% due 08/13/39 | | | 4 | | | | 4 | |
Series 2003-T12 Class B
4.854% due 08/13/39 | | | 465 | | | | 476 | |
Series 2003-T12 Class C
4.974% due 08/13/39 | | | 945 | | | | 938 | |
Series 2005-PWR7 Class A3
5.116% due 02/11/41 | | | 330 | | | | 359 | |
Series 2005-PWR8 Class A3 | | | | | | | | |
4.550% due 06/11/41 | | | 124 | | | | 124 | |
Series 2005-T20 Class A2 | | | | | | | | |
5.127% due 10/12/42 | | | 637 | | | | 637 | |
Series 2007-T26 Class A4 | | | | | | | | |
5.471% due 01/12/45 | | | 100 | | | | 114 | |
Bear Stearns Structured Products, Inc. | | | | | | | | |
Series 2007-R6 Class 1A1 | | | | | | | | |
2.763% due 01/26/36 (Ê) | | | 176 | | | | 105 | |
Series 2007-R6 Class 2A1 | | | | | | | | |
2.836% due 12/26/46 (Ê) | | | 1,459 | | | | 819 | |
Chase Commercial Mortgage Securities Corp. | | | | | | | | |
Series 1997-1 Class F | | | | | | | | |
7.370% due 06/19/29 (Þ) | | | 74 | | | | 74 | |
Series 1998-1 Class F | | | | | | | | |
6.560% due 05/18/30 (Þ) | | | 2,310 | | | | 2,361 | |
Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
Series 2007-10 Class 2A3A | | | | | | | | |
5.949% due 09/25/37 (Ê) | | | 126 | | | | 83 | |
Commercial Mortgage Acceptance Corp. | | | | | | | | |
Series 1998-C2 Class F | | | | | | | | |
5.440% due 09/15/30 (Þ) | | | 641 | | | | 663 | |
Commercial Mortgage Asset Trust | | | | | | | | |
Series 1999-C1 Class D | | | | | | | | |
7.350% due 01/17/32 | | | 650 | | | | 693 | |
Series 1999-C2 Class E | | | | | | | | |
7.640% due 11/17/32 | | | 50 | | | | 53 | |
Commercial Mortgage Pass Through Certificates | | | | | | | | |
Series 2003-LB1A Class A2 | | | | | | | | |
4.084% due 06/10/38 | | | 1,520 | | | | 1,554 | |
Series 2006-C7 Class A2 | | | | | | | | |
5.690% due 06/10/46 | | | 2 | | | | 2 | |
Series 2006-C8 Class A4 | | | | | | | | |
5.306% due 12/10/46 | | | 400 | | | | 449 | |
Series 2011-THL Class A | | | | | | | | |
3.376% due 06/09/28 (Þ) | | | 930 | | | | 950 | |
Countrywide Alternative Loan Trust | | | | | | | | |
Series 2003-J2 Class A1 | | | | | | | | |
6.000% due 10/25/33 | | | 90 | | | | 89 | |
Series 2005-48T1 Class A6 | | | | | | | | |
5.500% due 11/25/35 | | | 2,692 | | | | 2,000 | |
Series 2006-36T2 Class 1A9 | | | | | | | | |
1.139% due 12/25/36 (Ê) | | | 647 | | | | 342 | |
Countrywide Home Loan Mortgage Pass Through Trust | | | | | | | | |
Series 2004-22 Class A3 | | | | | | | | |
2.620% due 11/25/34 (Ê) | | | 152 | | | | 125 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2004-HYB9 Class 1A1 | | | | | | | | |
2.661% due 02/20/35 (Ê) | | | 267 | | | | 218 | |
Series 2005-HYB9 Class 5A1 | | | | | | | | |
2.610% due 02/20/36 (Ê) | | | 622 | | | | 395 | |
Series 2005-R2 Class 2A4 | | | | | | | | |
8.500% due 06/25/35 (Þ) | | | 152 | | | | 157 | |
Series 2006-1 Class A2 | | | | | | | | |
6.000% due 03/25/36 | | | 726 | | | | 597 | |
Series 2007-1 Class A1 | | | | | | | | |
6.000% due 03/25/37 | | | 2,676 | | | | 2,186 | |
Series 2007-2 Class A2 | | | | | | | | |
6.000% due 03/25/37 | | | 5,297 | | | | 4,345 | |
Series 2007-9 Class A11 | | | | | | | | |
5.750% due 07/25/37 | | | 1,300 | | | | 1,132 | |
Credit Suisse First Boston Mortgage Securities Corp. | | | | | | | | |
Series 2002-CKN2 Class C1 | | | | | | | | |
6.376% due 04/15/37 | | | 1,155 | | | | 1,166 | |
Series 2002-CKS4 Class B | | | | | | | | |
5.333% due 11/15/36 | | | 1,400 | | | | 1,409 | |
Series 2002-CP3 Class A3 | | | | | | | | |
5.603% due 07/15/35 | | | 40 | | | | 40 | |
Series 2002-CP3 Class C | | | | | | | | |
5.510% due 07/15/35 | | | 1,655 | | | | 1,652 | |
Series 2003-C3 Class C | | | | | | | | |
4.082% due 05/15/38 | | | 1,200 | | | | 1,216 | |
Series 2003-C5 Class D | | | | | | | | |
5.116% due 12/15/36 | | | 845 | | | | 854 | |
Series 2005-C1 Class AAB | | | | | | | | |
4.815% due 02/15/38 | | | 356 | | | | 363 | |
Series 2005-C2 Class A3 | | | | | | | | |
4.691% due 04/15/37 | | | 1,484 | | | | 1,540 | |
Series 2005-C3 Class A2 | | | | | | | | |
4.512% due 07/15/37 | | | 18 | | | | 18 | |
Series 2005-C4 Class A3 | | | | | | | | |
5.120% due 08/15/38 | | | 494 | | | | 494 | |
Credit Suisse Mortgage Capital Certificates | | | | | | | | |
Series 2006-C2 Class A3 | | | | | | | | |
5.851% due 03/15/39 | | | 100 | | | | 110 | |
Series 2010-19R Class 3A1 | | | | | | | | |
1.244% due 10/27/37 (Ê)(Þ) | | | 634 | | | | 632 | |
Deutsche ALT-A Securities, Inc. Alternate Loan Trust | | | | | | | | |
Series 2003-4XS Class A6A | | | | | | | | |
4.820% due 10/25/33 | | | 298 | | | | 292 | |
Deutsche Mortgage Securities, Inc. | | | | | | | | |
Series 2005-WF1 Class 1A3 | | | | | | | | |
5.248% due 06/26/35 (Ê)(Þ) | | | 500 | | | | 484 | |
DLJ Commercial Mortgage Corp. | | | | | | | | |
Series 2000-CKP1 Class B1 | | | | | | | | |
7.950% due 11/10/33 | | | 75 | | | | 76 | |
Fannie Mae | | | | | | | | |
5.000% due 2013 | | | 35 | | | | 37 | |
6.000% due 2013 | | | 16 | | | | 18 | |
4.000% due 2014 | | | 259 | | | | 274 | |
6.000% due 2014 | | | 78 | | | | 83 | |
5.500% due 2017 | | | 187 | | | | 205 | |
| | | | |
| | 324 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
6.000% due 2017 | | | 40 | | | | 43 | |
7.000% due 2017 | | | 46 | | | | 50 | |
4.000% due 2018 | | | 1,183 | | | | 1,268 | |
4.500% due 2019 | | | 371 | | | | 399 | |
4.500% due 2020 | | | 111 | | | | 120 | |
7.000% due 2022 | | | 667 | | | | 702 | |
4.500% due 2023 | | | 2,383 | | | | 2,562 | |
4.000% due 2024 | | | 68 | | | | 73 | |
4.500% due 2024 | | | 8,129 | | | | 8,734 | |
4.000% due 2025 | | | 1,133 | | | | 1,206 | |
4.500% due 2025 | | | 1,375 | | | | 1,502 | |
4.000% due 2026 | | | 1,659 | | | | 1,769 | |
5.000% due 2028 | | | 256 | | | | 278 | |
2.691% due 2033 (Ê) | | | 47 | | | | 50 | |
5.000% due 2033 | | | 3,009 | | | | 3,273 | |
5.000% due 2034 | | | 723 | | | | 786 | |
2.241% due 2035 (Ê) | | | 1,389 | | | | 1,468 | |
2.496% due 2035 (Ê) | | | 130 | | | | 138 | |
2.603% due 2035 (Ê) | | | 8,460 | | | | 9,032 | |
5.000% due 2035 | | | 4,060 | | | | 4,416 | |
5.500% due 2035 | | | 288 | | | | 316 | |
5.000% due 2036 | | | 102 | | | | 110 | |
5.500% due 2036 | | | 418 | | | | 458 | |
6.000% due 2036 | | | 1,750 | | | | 1,940 | |
5.000% due 2037 | | | 2,775 | | | | 3,018 | |
5.500% due 2037 | | | 840 | | | | 919 | |
5.500% due 2038 | | | 2,681 | | | | 2,937 | |
6.000% due 2038 | | | 1,122 | | | | 1,246 | |
4.500% due 2039 | | | 208 | | | | 223 | |
5.000% due 2039 | | | 633 | | | | 689 | |
6.000% due 2039 | | | 142 | | | | 159 | |
4.500% due 2040 | | | 3,537 | | | | 3,790 | |
5.000% due 2040 | | | 3,750 | | | | 4,093 | |
5.500% due 2040 | | | 770 | | | | 843 | |
1.419% due 2041 (Ê) | | | 404 | | | | 413 | |
4.500% due 2041 | | | 4,722 | | | | 5,070 | |
5.000% due 2041 | | | 388 | | | | 424 | |
5.500% due 2041 | | | 366 | | | | 402 | |
1.369% due 2042 (Ê) | | | 133 | | | | 134 | |
15 Year TBA(Ï) | | | | | | | | |
2.500% | | | 4,270 | | | | 4,370 | |
3.000% | | | 57,700 | | | | 60,206 | |
3.500% | | | 10,450 | | | | 11,025 | |
4.500% | | | 1,000 | | | | 1,074 | |
30 Year TBA(Ï) | | | | | | | | |
3.500% | | | 5,215 | | | | 5,415 | |
4.000% | | | 16,000 | | | | 16,922 | |
4.500% | | | 110,000 | | | | 119,242 | |
5.500% | | | 46,000 | | | | 50,277 | |
6.000% | | | 6,000 | | | | 6,633 | |
Fannie Mae Grantor Trust | | | | | | | | |
Series 2001-T3 Class A1 | | | | | | | | |
7.500% due 11/25/40 | | | 311 | | | | 357 | |
Series 2001-T4 Class A1 | | | | | | | | |
7.500% due 07/25/41 | | | 841 | | | | 983 | |
Series 2001-T8 Class A2 | | | | | | | | |
9.500% due 07/25/41 | | | 24 | | | | 29 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2001-T10 Class A1 | | | | | | | | |
7.000% due 12/25/41 | | | 65 | | | | 75 | |
Series 2001-T10 Class A2 | | | | | | | | |
7.500% due 12/25/41 | | | 1,240 | | | | 1,439 | |
Series 2002-T4 Class A3 | | | | | | | | |
7.500% due 12/25/41 | | | 11 | | | | 12 | |
Series 2002-T19 Class A1 | | | | | | | | |
6.500% due 07/25/42 | | | 548 | | | | 635 | |
Series 2004-T1 Class 1A2 | | | | | | | | |
6.500% due 01/25/44 | | | 1,042 | | | | 1,169 | |
Series 2004-T2 Class 1A3 | | | | | | | | |
7.000% due 11/25/43 | | | 892 | | | | 1,043 | |
Fannie Mae REMICS | | | | | | | | |
Series 2002-57 Class PG | | | | | | | | |
5.500% due 09/25/17 | | | 684 | | | | 738 | |
Series 2003-63 Class GU | | | | | | | | |
4.000% due 07/25/33 | | | 9 | | | | 10 | |
Series 2004-70 Class EB | | | | | | | | |
5.000% due 10/25/24 | | | 335 | | | | 368 | |
Series 2007-30 Class AF | | | | | | | | |
0.549% due 04/25/37 (Ê) | | | 284 | | | | 283 | |
Series 2007-63 Class FC | | | | | | | | |
0.589% due 07/25/37 (Ê) | | | 1,135 | | | | 1,133 | |
Series 2007-73 Class A1 | | | | | | | | |
0.299% due 07/25/37 (Ê) | | | 129 | | | | 123 | |
Series 2009-96 Class DB | | | | | | | | |
4.000% due 11/25/29 | | | 265 | | | | 288 | |
Series 2010-15 Class FD | | | | | | | | |
0.979% due 03/25/40 (Ê) | | | 1,992 | | | | 2,005 | |
Series 2010-85 Class NJ | | | | | | | | |
4.500% due 08/25/40 | | | 991 | | | | 1,069 | |
Series 2011-53 Class FY | | | | | | | | |
0.789% due 06/25/41 (Ê) | | | 4,185 | | | | 4,189 | |
Fannie Mae Whole Loan | | | | | | | | |
Series 2002-W3 Class A4 | | | | | | | | |
6.500% due 11/25/41 | | | 380 | | | | 446 | |
Series 2003-W2 Class 1A1 | | | | | | | | |
6.500% due 07/25/42 | | | 197 | | | | 228 | |
Series 2004-W2 Class 2A2 | | | | | | | | |
7.000% due 02/25/44 | | | 884 | | | | 1,014 | |
Series 2004-W9 Class 2A1 | | | | | | | | |
6.500% due 02/25/44 | | | 38 | | | | 44 | |
Series 2004-W11 Class 1A2 | | | | | | | | |
6.500% due 05/25/44 | | | 306 | | | | 348 | |
Series 2005-W1 Class 1A2 | | | | | | | | |
6.500% due 10/25/44 | | | 109 | | | | 128 | |
FDIC Structured Sale Guaranteed Notes | | | | | | | | |
Series 2010-C1 Class A | | | | | | | | |
2.980% due 12/06/20 (Þ) | | | 1,425 | | | | 1,481 | |
Series 2010-L2A Class A | | | | | | | | |
3.000% due 09/30/19 (Þ) | | | 1,116 | | | | 1,122 | |
Series 2010-S1 Class 1A | | | | | | | | |
0.791% due 02/25/48 (Å)(Ê) | | | 531 | | | | 532 | |
FDIC Trust | | | | | | | | |
Series 2010-R1 Class A | | | | | | | | |
2.184% due 05/25/50 (Þ) | | | 1,308 | | | | 1,306 | |
Series 2011-R1 Class A | | | | | | | | |
2.672% due 07/25/26 (Þ) | | | 1,909 | | | | 1,961 | |
| | |
| Russell Short Duration Bond Fund | | 325 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates | | | | | | | | |
Series 2009-K003 Class A3 | | | | | | | | |
4.324% due 12/25/15 | | | 875 | | | | 961 | |
Series 2011-K014 Class X1 | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.451% due 04/25/21 | | | 5,320 | | | | 465 | |
Series 2011-K015 Class X1 | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.847% due 07/25/21 | | | 2,979 | | | | 350 | |
Series 2011-K702 Class X1 | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.729% due 02/25/18 | | | 19,465 | | | | 1,477 | |
Series 2011-K703 Class A1 | | | | | | | | |
1.873% due 01/25/18 | | | 7,569 | | | | 7,745 | |
Series 2012-K501 Class X1A | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.758% due 08/25/16 | | | 11,745 | | | | 678 | |
Series 2012-K706 Class X1 | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.734% due 10/25/18 | | | 11,546 | | | | 1,010 | |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities | | | | | | | | |
Series 2002-51 Class 1A | | | | | | | | |
6.500% due 09/25/43 | | | 188 | | | | 213 | |
Series 2003-54 Class 2A | | | | | | | | |
6.500% due 02/25/43 | | | 155 | | | | 174 | |
Series 2003-58 Class 2A | | | | | | | | |
6.500% due 09/25/43 | | | 48 | | | | 56 | |
Series 2005-63 Class 1A1 | | | | | | | | |
1.369% due 02/25/45 (Ê) | | | 394 | | | | 378 | |
First Horizon Asset Securities, Inc. | | | | | | | | |
Series 2005-AR4 Class 2A1 | | | | | | | | |
2.621% due 10/25/35 (Ê) | | | 1,338 | | | | 1,066 | |
First Union-Lehman Brothers-Bank of America | | | | | | | | |
Series 1998-C2 Class D | | | | | | | | |
6.778% due 11/18/35 | | | 1,441 | | | | 1,473 | |
Fontainebleau Miami Beach Trust | | | | | | | | |
2.887% due 05/05/27 | | | 675 | | | | 681 | |
Freddie Mac | | | | | | | | |
6.000% due 2013 | | | 8 | | | | 9 | |
5.500% due 2014 | | | 4 | | | | 5 | |
6.000% due 2014 | | | 13 | | | | 14 | |
6.000% due 2016 | | | 83 | | | | 90 | |
6.000% due 2018 | | | 88 | | | | 95 | |
5.500% due 2019 | | | 1,614 | | | | 1,759 | |
5.500% due 2022 | | | 1,039 | | | | 1,128 | |
5.500% due 2029 | | | 297 | | | | 326 | |
6.000% due 2029 | | | 30 | | | | 33 | |
6.000% due 2031 | | | 76 | | | | 85 | |
6.000% due 2033 | | | 162 | | | | 181 | |
2.489% due 2035 (Ê) | | | 252 | | | | 267 | |
2.521% due 2035 (Ê) | | | 170 | | | | 181 | |
5.500% due 2038 | | | 704 | | | | 768 | |
5.500% due 2039 | | | 557 | | | | 607 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
30 Year TBA(Ï) | | | | | | | | |
4.500% | | | 2,000 | | | | 2,129 | |
Freddie Mac REMICS | | | | | | | | |
Series 2003-2559 Class PB | | | | | | | | |
5.500% due 08/15/30 | | | 2 | | | | 2 | |
Series 2003-2632 Class AB | | | | | | | | |
4.500% due 06/15/18 | | | 1,205 | | | | 1,345 | |
Series 2003-2657 Class WT | | | | | | | | |
4.500% due 08/15/18 | | | 810 | | | | 864 | |
Series 2006-3149 Class LF | | | | | | | | |
0.540% due 05/15/36 (Ê) | | | 333 | | | | 332 | |
Series 2006-3173 Class PE | | | | | | | | |
6.000% due 04/15/35 | | | 265 | | | | 289 | |
Series 2006-R006 Class ZA | | | | | | | | |
6.000% due 04/15/36 | | | 2,091 | | | | 2,449 | |
Series 2006-R007 Class ZA | | | | | | | | |
6.000% due 05/15/36 | | | 1,696 | | | | 2,011 | |
Series 2007-3335 Class BF | | | | | | | | |
0.390% due 07/15/19 (Ê) | | | 109 | | | | 109 | |
Series 2007-3335 Class FT | | | | | | | | |
0.390% due 08/15/19 (Ê) | | | 293 | | | | 293 | |
Series 2008-3414 Class JB | | | | | | | | |
4.500% due 02/15/23 | | | 360 | | | | 403 | |
Series 2010-3640 Class JA | | | | | | | | |
1.500% due 03/15/15 | | | 1,204 | | | | 1,209 | |
Series 2010-3704 Class DC | | | | | | | | |
4.000% due 11/15/36 | | | 474 | | | | 515 | |
Series 2011-3898 Class AF | | | | | | | | |
0.810% due 06/15/41 (Ê) | | | 5,139 | | | | 5,145 | |
FREMF Mortgage Trust | | | | | | | | |
Series 2011-K702 Class B | | | | | | | | |
4.936% due 04/25/44 (Þ) | | | 500 | | | | 511 | |
GE Capital Commercial Mortgage Corp. | | | | | | | | |
Series 2003-C1 Class A4 | | | | | | | | |
4.819% due 01/10/38 | | | 1,021 | | | | 1,040 | |
Series 2003-C2 Class F | | | | | | | | |
5.688% due 07/10/37 (Þ) | | | 135 | | | | 136 | |
Series 2005-C3 Class A4 | | | | | | | | |
5.046% due 07/10/45 | | | 1,451 | | | | 1,451 | |
Ginnie Mae I | | | | | | | | |
9.500% due 2017 | | | — | | | | — | |
Ginnie Mae II | | | | | | | | |
1.625% due 2027 (Ê) | | | 36 | | | | 37 | |
2.000% due 2032 (Ê) | | | 51 | | | | 53 | |
4.502% due 2061 | | | 763 | | | | 847 | |
4.700% due 2061 | | | 1,874 | | | | 2,120 | |
GMAC Commercial Mortgage Securities, Inc. | | | | | | | | |
Series 2001-C1 Class D | | | | | | | | |
7.034% due 04/15/34 | | | 74 | | | | 74 | |
Series 2001-C2 Class C | | | | | | | | |
6.870% due 04/15/34 | | | 285 | | | | 285 | |
Series 2002-C3 Class B | | | | | | | | |
5.101% due 07/10/39 | | | 1,485 | | | | 1,503 | |
Series 2004-C3 Class A4 | | | | | | | | |
4.547% due 12/10/41 | | | 625 | | | | 627 | |
| | | | |
| | 326 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Government National Mortgage Association | | | | | | | | |
Series 2006-67 Class A | | | | | | | | |
3.947% due 11/16/30 | | | 251 | | | | 256 | |
Series 2007-4 Class A | | | | | | | | |
4.206% due 06/16/29 | | | 162 | | | | 164 | |
Series 2010-14 Class A | | | | | | | | |
4.500% due 06/16/39 | | | 420 | | | | 464 | |
Series 2011-127 Class IO | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.560% due 03/16/47 | | | 8,919 | | | | 697 | |
Series 2011-H21 Class HI | | | | | | | | |
Interest Only STRIP | | | | | | | | |
1.795% due 11/20/61 | | | 10,101 | | | | 820 | |
Greenpoint Mortgage Funding Trust | | | | | | | | |
Series 2006-AR8 Class 1A1A | | | | | | | | |
0.319% due 01/25/47 (Ê) | | | 19 | | | | 19 | |
Greenpoint Mortgage Pass-Through Certificates | | | | | | | | |
Series 2003-1 Class A1 | | | | | | | | |
3.130% due 10/25/33 (Ê) | | | 176 | | | | 154 | |
Greenwich Capital Commercial Funding Corp. | | | | | | | | |
Series 2002-C1 Class B | | | | | | | | |
5.104% due 01/11/35 | | | 480 | | | | 487 | |
Series 2005-GG3 Class A2 | | | | | | | | |
4.305% due 08/10/42 | | | 103 | | | | 103 | |
Series 2007-GG9 Class A2 | | | | | | | | |
5.381% due 03/10/39 | | | 511 | | | | 517 | |
Series 2007-GG9 Class A4 | | | | | | | | |
5.444% due 03/10/39 | | | 100 | | | | 111 | |
GS Mortgage Securities Corp. II | | | | | | | | |
Series 2004-GG2 Class A4 | | | | | | | | |
4.964% due 08/10/38 | | | 2,448 | | | | 2,478 | |
Series 2006-GG8 Class A2 | | | | | | | | |
5.479% due 11/10/39 | | | 226 | | | | 228 | |
Series 2011-ALF Class A | | | | | | | | |
2.716% due 02/10/21 (Þ) | | | 1,075 | | | | 1,093 | |
GSMPS Mortgage Loan Trust | | | | | | | | |
Series 1998-1 Class A | | | | | | | | |
8.000% due 09/19/27 (Þ) | | | 61 | | | | 63 | |
Series 1998-2 Class A | | | | | | | | |
7.750% due 05/19/27 (Þ) | | | 285 | | | | 297 | |
Series 1998-3 Class A | | | | | | | | |
7.750% due 09/19/27 (Þ) | | | 14 | | | | 15 | |
Series 1999-3 Class A | | | | | | | | |
8.000% due 08/19/29 (Þ) | | | 23 | | | | 23 | |
Series 2005-RP1 Class 1A4 | | | | | | | | |
8.500% due 01/25/35 (Þ) | | | 240 | | | | 251 | |
Series 2006-RP1 Class 1A2 | | | | | | | | |
7.500% due 01/25/36 (Þ) | | | 457 | | | | 457 | |
Series 2006-RP1 Class 1A3 | | | | | | | | |
8.000% due 01/25/36 (Þ) | | | 123 | | | | 125 | |
GSR Mortgage Loan Trust | | | | | | | | |
Series 2004-7 Class 1A1 | | | | | | | | |
2.452% due 06/25/34 (Ê) | | | 235 | | | | 209 | |
Series 2005-AR6 Class 2A1 | | | | | | | | |
2.653% due 09/25/35 (Ê) | | | 355 | | | | 344 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Series 2006-2F Class 3A3 | | | | | | | | |
6.000% due 02/25/36 | | | 2,625 | | | | 2,052 | |
Series 2006-3F Class 2A3 | | | | | | | | |
5.750% due 03/25/36 | | | 580 | | | | 503 | |
Series 2006-8F Class 4A17 | | | | | | | | |
6.000% due 09/25/36 | | | 1,167 | | | | 985 | |
Series 2007-AR1 Class 1A1 | | | | | | | | |
2.801% due 03/25/37 (Ê) | | | 3,563 | | | | 2,224 | |
Harborview Mortgage Loan Trust | | | | | | | | |
Series 2005-4 Class 3A1 | | | | | | | | |
2.838% due 07/19/35 (Ê) | | | 856 | | | | 615 | |
JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
Series 2001-CIB2 Class C | | | | | | | | |
6.739% due 04/15/35 | | | 1,689 | | | | 1,693 | |
Series 2001-CIB2 Class D | | | | | | | | |
6.847% due 04/15/35 | | | 103 | | | | 105 | |
Series 2002-C2 Class B | | | | | | | | |
5.211% due 12/12/34 | | | 761 | | | | 768 | |
Series 2002-C3 Class B | | | | | | | | |
5.146% due 07/12/35 | | | 465 | | | | 467 | |
Series 2002-CIB4 Class A3 | | | | | | | | |
6.162% due 05/12/34 | | | 13 | | | | 13 | |
Series 2003-C1 Class A2 | | | | | | | | |
4.985% due 01/12/37 | | | 480 | | | | 489 | |
Series 2003-C1 Class B | | | | | | | | |
5.095% due 01/12/37 | | | 175 | | | | 177 | |
Series 2005-CB13 Class A4 | | | | | | | | |
5.461% due 01/12/43 | | | 2,070 | | | | 2,265 | |
Series 2007-LD12 Class A4 | | | | | | | | |
5.882% due 02/15/51 | | | 100 | | | | 112 | |
Series 2010-CNTR Class A2 | | | | | | | | |
4.311% due 08/05/32 (Þ) | | | 595 | | | | 634 | |
JPMorgan Mortgage Trust | | | | | | | | |
Series 2004-A2 Class 1A1 | | | | | | | | |
3.059% due 05/25/34 (Ê) | | | 299 | | | | 292 | |
Series 2005-A1 Class 6T1 | | | | | | | | |
5.003% due 02/25/35 (Ê) | | | 17 | | | | 17 | |
Series 2005-A4 Class 1A1 | | | | | | | | |
5.315% due 07/25/35 (Ê) | | | 148 | | | | 148 | |
Series 2006-A6 Class 1A2 | | | | | | | | |
2.772% due 10/25/36 (Ê) | | | 35 | | | | 28 | |
LB Commercial Conduit Mortgage Trust | | | | | | | | |
Series 1998-C1 Class E | | | | | | | | |
7.000% due 02/18/30 | | | 619 | | | | 630 | |
LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2003-C5 Class C | | | | | | | | |
4.762% due 04/15/37 | | | 455 | | | | 470 | |
Series 2003-C8 Class D | | | | | | | | |
5.237% due 09/15/37 | | | 470 | | | | 481 | |
Series 2004-C2 Class A3 | | | | | | | | |
3.973% due 03/15/29 | | | 114 | | | | 116 | |
Series 2004-C7 Class A1A | | | | | | | | |
4.475% due 10/15/29 | | | 1,323 | | | | 1,376 | |
Series 2004-C7 Class A5 | | | | | | | | |
4.628% due 10/15/29 | | | 217 | | | | 222 | |
Series 2005-C1 Class A3 | | | | | | | | |
4.545% due 02/15/30 | | | 63 | | | | 63 | |
| | |
| Russell Short Duration Bond Fund | | 327 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Mastr Adjustable Rate Mortgages Trust | | | | | | | | |
Series 2005-1 Class B1 | | | | | | | | |
3.333% due 03/25/35 (Ê) | | | 318 | | | | 22 | |
Series 2005-6 Class 7A1 | | | | | | | | |
5.323% due 06/25/35 (Ê) | | | 46 | | | | 46 | |
Mastr Reperforming Loan Trust | | | | | | | | |
Series 2005-1 Class 1A3 | | | | | | | | |
7.000% due 08/25/34 (Þ) | | | 593 | | | | 606 | |
Series 2005-2 Class 1A4 | | | | | | | | |
8.000% due 05/25/35 (Þ) | | | 406 | | | | 400 | |
Mellon Residential Funding Corp. | | | | | | | | |
Series 2000-TBC2 Class A1 | | | | | | | | |
0.720% due 06/15/30 (Ê) | | | 379 | | | | 362 | |
Merrill Lynch Mortgage Investors, Inc. | | | | | | | | |
Series 1998-C1 Class A3 | | | | | | | | |
6.720% due 11/15/26 | | | 2,184 | | | | 2,414 | |
Series 1998-C3 Class E | | | | | | | | |
7.008% due 12/15/30 | | | 3,650 | | | | 3,833 | |
Series 2005-A10 Class A | | | | | | | | |
0.449% due 02/25/36 (Ê) | | | 50 | | | | 36 | |
Merrill Lynch Mortgage Trust
Series 2003-KEY1 Class A4
5.236% due 11/12/35 | | | 3,000 | | | | 3,156 | |
Series 2005-CIP1 Class A2
4.960% due 07/12/38 | | | 155 | | | | 158 | |
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-6 Class A4
5.485% due 03/12/51 | | | 200 | | | | 216 | |
MLCC Mortgage Investors, Inc.
Series 2005-3 Class 5A
0.489% due 11/25/35 (Ê) | | | 95 | | | | 75 | |
Morgan Stanley Capital I
Series 1998-HF2 Class G
6.010% due 11/15/30 (Þ) | | | 77 | | | | 77 | |
Morgan Stanley Dean Witter Capital I
Series 2001-TOP1 Class E
7.607% due 02/15/33 (Þ) | | | 55 | | | | 54 | |
Series 2001-TOP3 Class C
6.790% due 07/15/33 | | | 745 | | | | 772 | |
Series 2002-IQ2 Class B
5.930% due 12/15/35 | | | 73 | | | | 73 | |
Series 2002-TOP7 Class B
6.080% due 01/15/39 | | | 864 | | | | 866 | |
NCUA Guaranteed Notes
Series 2010-R1 Class 2A
1.840% due 10/07/20 | | | 2,664 | | | | 2,698 | |
Series 2010-R3 Class 3A
2.400% due 12/08/20 | | | 863 | | | | 884 | |
Nomura Asset Acceptance Corp.
Series 2004-AR4 Class 1A1
2.496% due 12/25/34 (Ê) | | | 733 | | | | 709 | |
Series 2005-WF1 Class 2A2
4.786% due 03/25/35 | | | 229 | | | | 220 | |
Nomura Asset Securities Corp.
Series 1998-D6 Class A2
7.319% due 03/15/30 | | | 633 | | | | 653 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Prime Mortgage Trust
Series 2004-CL1 Class 1A2
0.639% due 02/25/34 (Ê) | | | 56 | | | | 50 | |
Series 2004-CL1 Class 2A2
0.639% due 02/25/19 (Ê) | | | 4 | | | | 4 | |
Prudential Commercial Mortgage Trust
Series 2003-PWR1 Class A2
4.493% due 02/11/36 | | | 350 | | | | 357 | |
Series 2003-PWR1 Class C
4.706% due 02/11/36 | | | 500 | | | | 493 | |
Series 2003-PWR1 Class E
5.259% due 02/11/36 (Þ) | | | 180 | | | | 174 | |
Residential Accredit Loans, Inc.
Series 2005-QS14 Class 2A1
6.000% due 09/25/35 | | | 274 | | | | 185 | |
Residential Asset Securitization Trust
Series 2005-A10 Class A3
5.500% due 09/25/35 | | | 612 | | | | 520 | |
Series 2006-A9CB Class A6
6.000% due 09/25/36
| | | 665 | | | | 365 | |
Residential Funding Mortgage Securities I
Series 2006-S10 Class 1A7
6.000% due 10/25/36 | | | 615 | | | | 512 | |
RREF 2012 LT1 LLC
Series 2012-LT1A Class A
4.750% due 02/15/25 (Å) | | | 1,000 | | | | 1,005 | |
Salomon Brothers Mortgage Securities VII, Inc.
Series 2002-KEY2 Class C
5.045% due 03/18/36 | | | 150 | | | | 150 | |
Series 2003-UP2 Class A1
4.000% due 12/25/18 | | | 147 | | | | 154 | |
Structured Adjustable Rate Mortgage Loan Trust
Series 2005-22 Class 4A2
5.156% due 12/25/35 (Ê) | | | 6 | | | | 1 | |
Structured Asset Mortgage Investments, Inc.
Series 2002-AR3 Class A1
0.900% due 09/19/32 (Ê) | | | 20 | | | | 18 | |
Structured Asset Securities Corp.
Series 2001-21A Class 1A1
2.396% due 01/25/32 (Ê) | | | 11 | | | | 8 | |
Series 2003-34A Class 6A
2.698% due 11/25/33 (Ê) | | | 409 | | | | 384 | |
Series 2005-6 Class B2
5.247% due 05/25/35 | | | 109 | | | | 3 | |
SunTrust Adjustable Rate Mortgage Loan Trust
Series 2007-2 Class 3A3
5.501% due 04/25/37 (Ê) | | | 5,456 | | | | 4,141 | |
Wachovia Bank Commercial Mortgage Trust
Series 2003-C4 Class D
5.040% due 04/15/35 | | | 555 | | | | 559 | |
Series 2003-C5 Class B
4.107% due 06/15/35 | | | 110 | | | | 112 | |
| | | | |
| | 328 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Series 2003-C9 Class B
5.109% due 12/15/35 | | | 240 | | | | 247 | |
Series 2005-C22 Class A3
5.463% due 12/15/44 | | | 475 | | | | 479 | |
Series 2006-WL7A Class A1
0.330% due 09/15/21 (Ê)(Þ) | | | 845 | | | | 817 | |
Series 2007-C31 Class A4
5.509% due 04/15/47 | | | 100 | | | | 109 | |
Series 2007-C33 Class A2
6.053% due 02/15/51 | | | 986 | | | | 988 | |
Washington Mutual Mortgage Pass Through Certificates
Series 2002-AR6 Class A
1.558% due 06/25/42 (Ê) | | | 57 | | | | 46 | |
Series 2002-AR9 Class 1A
1.558% due 08/25/42 (Ê) | | | 155 | | | | 126 | |
Series 2003-AR7 Class A7
2.440% due 08/25/33 (Ê) | | | 160 | | | | 157 | |
Series 2004-AR13 Class A2A
0.620% due 11/25/34 (Ê) | | | 472 | | | | 389 | |
Series 2005-AR13 Class A1A1
0.529% due 10/25/45 (Ê) | | | 752 | | | | 600 | |
Series 2006-AR8 Class 1A5
2.511% due 08/25/46 (Ê) | | | 142 | | | | 3 | |
Series 2006-AR8 Class 2A3
5.494% due 08/25/36 (Ê) | | | 21 | | | | 2 | |
Series 2006-AR11 Class 2A
2.706% due 09/25/46 (Ê) | | | 410 | | | | 311 | |
Series 2007-HY3 Class 4A1
2.692% due 03/25/37 (Ê) | | | 2,873 | | | | 2,265 | |
Wells Fargo Mortgage Backed Securities Trust
Series 2004-CC Class A1
2.604% due 01/25/35 (Ê) | | | 137 | | | | 129 | |
Series 2005-AR2 Class 2A1
2.614% due 03/25/35 (Ê) | | | 324 | | | | 300 | |
Series 2005-AR16 Class 6A3
2.706% due 10/25/35 (Ê) | | | 4,039 | | | | 3,807 | |
Series 2006-3 Class A1
5.500% due 03/25/36 | | | 517 | | | | 513 | |
Series 2006-6 Class 1A22
6.000% due 05/25/36 (Ê) | | | 3,062 | | | | 2,846 | |
Series 2006-AR2 Class 2A1
2.629% due 03/25/36 | | | 558 | | | | 489 | |
Series 2006-AR2 Class 2A3
2.629% due 03/25/36 (Ê) | | | 1,588 | | | | 1,382 | |
Series 2006-AR4 Class 1A1
5.779% due 04/25/36 (Ê) | | | 370 | | | | 312 | |
Series 2006-AR10 Class 4A1
2.619% due 07/25/36 (Ê) | | | 726 | | | | 539 | |
Series 2006-AR10 Class 5A6
2.702% due 07/25/36 (Ê) | | | 142 | | | | 108 | |
Series 2006-AR17 Class A1
2.606% due 10/25/36 (Ê) | | | 2,025 | | | | 1,538 | |
Series 2006-AR18 Class 2A2
5.374% due 11/25/36 (Ê) | | | 160 | | | | 13 | |
Series 2007-AR8 Class A1
6.020% due 11/25/37 (Ê) | | | 1,074 | | | | 879 | |
| | | | | | | | |
| | | | | | | 543,893 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Municipal Bonds - 0.1% | | | | | | | | |
New Jersey Economic Development Authority Revenue Bonds
1.474% due 06/15/13 (Ê) | | | 1,000 | | | | 1,001 | |
| | | | | | | | |
| | |
| Non-US Bonds - 2.3% | | | | | | | | |
Arran Residential Mortgages Funding PLC
Series 2011-1A Class A1B
2.241% due 11/19/47 (Ê)(Þ) | | EUR | 3,560 | | | | 4,718 | |
Brazil Notas do Tesouro Nacional
Serie B
Series NTNB
6.000% due 05/15/15 | | BRL | 833 | | | | 1,021 | |
Brazil Notas do Tesouro Nacional
Serie F
Series NTNF
10.000% due 01/01/14 | | BRL | 969 | | | | 534 | |
Bundesrepublik Deutschland
Series 07
4.000% due 01/04/18 | | EUR | 150 | | | | 234 | |
Canada Housing Trust No. 1
2.050% due 06/15/17 (Þ) | | CAD | 1,500 | | | | 1,523 | |
Granite Master Issuer PLC
Series 2006-2 Class A6
0.798% due 12/20/54 (Ê) | | GBP | 1,035 | | | | 1,609 | |
Kreditanstalt fuer Wiederaufbau
4.375% due 07/04/18 | | EUR | 700 | | | | 1,076 | |
3.875% due 01/21/19 | | EUR | 800 | | | | 1,201 | |
Mexican Bonos
Series M
6.250% due 06/16/16 | | MXN | 11,625 | | | | 928 | |
6.500% due 06/10/21 | | MXN | 10,000 | | | | 787 | |
Opera Finance PLC
Series 2005-CSC3 Class A
1.243% due 04/25/17 (Ê) | | GBP | 165 | | | | 246 | |
Peruvian Government International Bond
Series REGS
8.600% due 08/12/17 | | PEN | 2,440 | | | | 1,100 | |
6.950% due 08/12/31 | | PEN | 1,465 | | | | 617 | |
Province of Ontario Canada
3.200% due 09/08/16 | | CAD | 200 | | | | 212 | |
4.300% due 03/08/17 | | CAD | 3,700 | | | | 4,115 | |
4.000% due 06/02/21 | | CAD | 2,605 | | | | 2,850 | |
3.150% due 06/02/22 | | CAD | 2,700 | | | | 2,747 | |
| | | | | | | | |
| | | | | | | 25,518 | |
| | | | | | | | |
|
| United States Government Agencies - 2.2% | |
Fannie Mae
5.000% due 05/11/17 | | | 500 | | | | 596 | |
Federal Home Loan Mortgage Corp.
1.375% due 02/25/14 | | | 925 | | | | 943 | |
2.000% due 08/25/16 | | | 2,175 | | | | 2,279 | |
Federal National Mortgage Association
0.375% due 03/16/15 | | | 19,500 | | | | 19,436 | |
Zero coupon due 10/09/19 | | | 1,670 | | | | 1,344 | |
| | | | | | | | |
| | | | | | | 24,598 | |
| | | | | | | | |
| | |
| Russell Short Duration Bond Fund | | 329 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| United States Government Treasuries - 15.5% | |
United States Treasury Inflation Indexed Bonds
1.625% due 01/15/15 (Æ) | | | 4,459 | | | | 4,844 | |
2.000% due 01/15/16 (Æ) | | | 854 | | | | 966 | |
0.125% due 04/15/16 (Æ) | | | 25,678 | | | | 27,219 | |
0.125% due 04/15/17 (Æ) | | | 13,730 | | | | 14,699 | |
United States Treasury Notes
0.250% due 02/28/14 | | | 1,000 | | | | 1,000 | |
0.250% due 03/31/14 | | | 16,055 | | | | 16,053 | |
0.250% due 04/30/14 | | | 44,800 | | | | 44,790 | |
0.375% due 04/15/15 | | | 22,220 | | | | 22,218 | |
0.875% due 12/31/16 | | | 13,200 | | | | 13,278 | |
1.000% due 03/31/17 | | | 1,000 | | | | 1,010 | |
0.875% due 04/30/17 | | | 1,105 | | | | 1,108 | |
1.375% due 12/31/18 | | | 24,000 | | | | 24,231 | |
2.000% due 02/15/22 | | | 490 | | | | 494 | |
| | | | | | | | |
| | | | | | | 171,910 | |
| | | | | | | | |
| |
Total Long-Term Investments
(cost $1,118,293) | | | | 1,127,048 | |
| | | | | | | | |
| | |
| Preferred Stocks - 0.2% | | | | | | | | |
| Financial Services - 0.2% | | | | | | | | |
DG Funding Trust (Å) | | | 219 | | | | 1,638 | |
Wells Fargo & Co. | | | 300 | | | | 336 | |
| | | | | | | | |
| | | | | | | 1,974 | |
| | | | | | | | |
| |
Total Preferred Stocks
(cost $2,483) | | | | 1,974 | |
| | | | | | | | |
|
| Short-Term Investments - 19.4% | |
Allstate Life Global Funding Trusts
5.375% due 04/30/13 | | | 200 | | | | 210 | |
Ally Financial, Inc.
Series*
6.875% due 08/28/12 | | | 300 | | | | 304 | |
American Express Bank FSB
Series BKNT
5.500% due 04/16/13 | | | 300 | | | | 313 | |
American Express Centurion Bank
Series BKNT
0.390% due 06/12/12 (Ê) | | | 1,120 | | | | 1,120 | |
AT&T, Inc.
4.950% due 01/15/13 | | | 1,500 | | | | 1,546 | |
Banco Bradesco SA
1.955% due 01/24/13 (ž) | | | 400 | | | | 403 | |
Banco Santander Chile
2.875% due 11/13/12 (Þ) | | | 1,200 | | | | 1,201 | |
Bank of Nova Scotia
0.589% due 10/18/12 (ž) | | | 1,500 | | | | 1,501 | |
BNP Paribas SA
Series MTN
0.869% due 04/08/13 (Ê) | | | 1,600 | | | | 1,584 | |
Citigroup, Inc.
5.625% due 08/27/12 | | | 200 | | | | 203 | |
1.353% due 02/15/13 (Ê) | | | 5,800 | | | | 5,788 | |
5.500% due 04/11/13 | | | 700 | | | | 724 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
COX Communications, Inc.
7.125% due 10/01/12 | | | 2,250 | | | | 2,311 | |
Danske Bank A/S
2.500% due 05/10/12 (Þ) | | | 200 | | | | 200 | |
Dexia Credit Local NY
0.880% due 03/05/13 (Ê)(Þ) | | | 2,800 | | | | 2,693 | |
Dominion Resources, Inc.
Series B
6.250% due 06/30/12 | | | 350 | | | | 353 | |
DT Auto Owner Trust
Series 2010-1A Class B
2.360% due 04/15/13 (Þ) | | | 109 | | | | 109 | |
Enterprise Products Operating LLC
4.600% due 08/01/12 | | | 1,000 | | | | 1,010 | |
5.900% due 04/15/13 | | | 175 | | | | 183 | |
Fannie Mae
5.250% due 08/01/12 | | | 2,230 | | | | 2,255 | |
Federal Farm Credit Bank
0.140% due 01/28/13 | | | 14,600 | | | | 14,584 | |
Federal Home Loan Banks
0.170% due 02/08/13 | | | 800 | | | | 800 | |
0.190% due 02/12/13 | | | 3,200 | | | | 3,199 | |
0.160% due 02/13/13 | | | 900 | | | | 899 | |
0.240% due 04/26/13 | | | 15,000 | | | | 14,997 | |
0.150% due 02/06/13 | | | 1,200 | | | | 1,199 | |
Series 0002
0.200% due 03/01/13 | | | 900 | | | | 900 | |
Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2002-50 Class A6
3.614% due 09/27/12 | | | 53 | | | | 53 | |
Ford Motor Credit Co. LLC
7.500% due 08/01/12 | | | 525 | | | | 533 | |
Freddie Mac
4.500% due 01/15/13 | | | 800 | | | | 824 | |
Freddie Mac Discount Notes
Zero coupon due 04/23/13 (ž) | | | 50,000 | | | | 49,901 | |
HSBC Finance Corp.
1.020% due 04/05/13 (Ê) | | | 2,000 | | | | 2,633 | |
IBM International Group Capital LLC
5.050% due 10/22/12 | | | 335 | | | | 343 | |
Intesa Sanpaolo SpA NY
Series YCD
2.375% due 12/21/12 | | | 2,100 | | | | 2,070 | |
Itau Unibanco SA
Zero coupon due 05/09/12 (ç)(ž) | | | 3,500 | | | | 3,499 | |
1.640% due 05/16/12 (ç)(ž) | | | 1,600 | | | | 1,599 | |
Merrill Lynch & Co., Inc.
0.710% due 06/05/12 (Ê) | | | 2,045 | | | | 2,045 | |
5.571% due 10/04/12 | | | 2,200 | | | | 2,222 | |
5.450% due 02/05/13 | | | 3,700 | | | | 3,801 | |
Metropolitan Life Global Funding I
5.125% due 04/10/13 (Þ) | | | 100 | | | | 104 | |
Morgan Stanley
1.321% due 03/01/13 (Ê) | | | 1,400 | | | | 1,830 | |
Motorola Solutions, Inc.
5.375% due 11/15/12 | | | 800 | | | | 820 | |
| | | | |
| | 330 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Nationwide Building Society
2.500% due 08/17/12 (Þ) | | | 400 | | | | 402 | |
NGPL PipeCo LLC
6.514% due 12/15/12 (Þ) | | | 585 | | | | 583 | |
Nissan Auto Receivables Owner Trust
Series 2012-A Class A1
0.359% due 03/15/13 | | | 4,299 | | | | 4,304 | |
Pacific Life Global Funding
5.150% due 04/15/13 (Þ) | | | 900 | | | | 935 | |
Principal Life Income Funding Trusts
5.300% due 04/24/13 | | | 200 | | | | 209 | |
Railcar Leasing LLC
Series 1997-1 Class A2
7.125% due 01/15/13 (Þ) | | | 356 | | | | 366 | |
Regions Financial Corp.
0.644% due 06/26/12 (Ê) | | | 1,100 | | | | 1,099 | |
Russell U.S. Cash Management Fund | | | 61,047,164 | (¥) | | | 61,047 | |
Santander Drive Auto Receivables Trust
Series 2011-4 Class A1
0.419% due 10/15/12 | | | 107 | | | | 107 | |
SLM Corp.
Series emtn
4.875% due 12/17/12 | | | 500 | | | | 802 | |
SMART Trust
Series 2011-1USA Class A2A
1.180% due 04/14/13 (Þ) | | | 854 | | | | 854 | |
Societe Financement de l’Economie Francaise
2.125% due 05/20/12 | | | 300 | | | | 397 | |
Springleaf Finance Corp.
Series MTNI
4.875% due 07/15/12 | | | 300 | | | | 298 | |
Telefonica Emisiones SAU
2.582% due 04/26/13 | | | 755 | | | | 752 | |
TIAA Global Markets, Inc.
5.125% due 10/10/12 (Þ) | | | 1,000 | | | | 1,019 | |
Verizon Communications, Inc.
4.350% due 02/15/13 | | | 1,955 | | | | 2,013 | |
Volkswagen International Finance NV
0.918% due 10/01/12 (Ê)(Þ) | | | 1,700 | | | | 1,702 | |
Wachovia Corp.
4.660% due 05/25/12 (Ê) | | | 2,700 | | | | 2,814 | |
Westpac Banking Corp.
2.250% due 11/19/12 | | | 2,000 | | | | 2,019 | |
| | | | | | | | |
| |
Total Short-Term Investments
(cost $214,952) | | | | 214,588 | |
| | | | | | | | |
| |
| Repurchase Agreements - 3.6% | | | | | |
Agreement with Bank of America Securities LLC and State Street Bank (Tri-Party) of $12,500 dated April 30, 2012 at 0.210% to be repurchased at $12,500 on May 1, 2012 collateralized by: $12,692 par various United States Treasury Obligations, valued at $12,751. | | | 12,500 | | | | 12,500 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Agreement with Barclays Capital Inc. and State Street Bank (Tri-Party) of $5,000 dated April 30, 2012 at 0.210% to be repurchased at $5,000 on May 1, 2012 collateralized by: $4,658 par various United States Government Agency Obligations, valued at $5,163. | | | 5,000 | | | | 5,000 | |
Agreement with Morgan Stanley Co. Incorporated and State Street Bank (Tri-Party) of $11,100 dated April 30, 2012 at 0.200% to be repurchased at $11,100 on May 1, 2012 collateralized by: $10,771 par various United States Treasury Obligations, valued at $11,307. | | | 11,100 | | | | 11,100 | |
Agreement with Morgan Stanley Co. Incorporated and State Street Bank (Tri-Party) of $11,100 dated April 30, 2012 at 0.200% to be repurchased at $11,100 on May 1, 2012 collateralized by: $9,059 par various United States Treasury Obligations, valued at $11,117. | | | 11,100 | | | | 11,100 | |
| | | | | | | | |
| |
Total Repurchase Agreements
(cost $39,700) | | | | 39,700 | |
| | | | | | | | |
| |
Total Investments - 124.9%
(identified cost $1,375,428) | | | | 1,383,310 | |
| |
Other Assets and Liabilities,
Net - (24.9%) | | | | (275,947 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,107,363 | |
| | | | | | | | |
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 Short Duration Bond Fund | | 331 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | | | |
Eurodollar Futures (CME) | | | 9 | | | | USD | | | | 2,234 | | | | 03/14 | | | | 33 | |
United States Treasury 2 Year Note Futures | | | 308 | | | | USD | | | | 67,929 | | | | 06/12 | | | | 121 | |
| | | | | |
| Short Positions | | | | | | | | | | | | | | | | | | | | |
United States Treasury 5 Year Note Futures | | | 223 | | | | USD | | | | 27,607 | | | | 06/12 | | | | (87) | |
United States Treasury 10 Year Note Futures | | | 188 | | | | USD | | | | 24,869 | | | | 06/12 | | | | (182) | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | | | | | | | | | | (115) | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 332 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | | | | | |
| Options Written | | Call/Put | | | Number of
Contracts | | | Strike
Price | | | Notional
Amount | | | Expiration
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Swaptions | | | | | | | | | | | | | | | | | | | | | | | | |
(Fund Receives/Fund Pays) | | | | | | | | | | | | | | | | | | | | | | | | |
USD 0.9200%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | 7,800 | | | | 11/14/12 | | | | (7) | |
USD 1.550%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | 1,400 | | | | 08/13/12 | | | | (3) | |
USD 1.700%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | 1,400 | | | | 08/13/12 | | | | (2) | |
USD 2.000%/USD Three Month LIBOR | | | Put | | | | 1 | | | | 0.00 | | | | 1,800 | | | | 03/18/13 | | | | (10) | |
USD 2.250%/USD Three Month LIBOR | | | Put | | | | 3 | | | | 0.00 | | | | 26,600 | | | | 09/24/12 | | | | — | |
USD 2.750%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | 14,800 | | | | 06/18/12 | | | | — | |
USD 3.000%/USD Three Month LIBOR | | | Put | | | | 6 | | | | 0.00 | | | | 30,000 | | | | 06/18/12 | | | | — | |
USD 3.250%/USD Three Month LIBOR | | | Put | | | | 2 | | | | 0.00 | | | | 5,200 | | | | 07/16/12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Total Liability for Options Written (premiums received $842) | | | | | | | | | | | | (22) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 333 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Bank of America | | USD | | | 397 | | | EUR | | 300 | | | 05/03/12 | | | | — | |
Bank of America | | MXN | | | 162 | | | USD | | 12 | | | 05/22/12 | | | | — | |
Bank of Nova Scotia | | USD | | | 524 | | | EUR | | 400 | | | 06/14/12 | | | | 5 | |
Bank of Nova Scotia | | USD | | | 1,048 | | | EUR | | 800 | | | 06/14/12 | | | | 11 | |
Barclays Bank PLC | | USD | | | 100 | | | BRL | | 185 | | | 06/04/12 | | | | (4 | ) |
Barclays Bank PLC | | USD | | | 100 | | | BRL | | 185 | | | 06/04/12 | | | | (4 | ) |
Barclays Bank PLC | | USD | | | 5,348 | | | CAD | | 5,310 | | | 06/21/12 | | | | 21 | |
Barclays Bank PLC | | USD | | | 368 | | | EUR | | 280 | | | 06/14/12 | | | | 3 | |
Barclays Bank PLC | | USD | | | 933 | | | EUR | | 700 | | | 06/14/12 | | | | (6 | ) |
Barclays Bank PLC | | USD | | | 394 | | | EUR | | 300 | | | 07/16/12 | | | | 4 | |
Barclays Bank PLC | | USD | | | 788 | | | EUR | | 600 | | | 07/16/12 | | | | 7 | |
Barclays Bank PLC | | USD | | | 2,917 | | | GBP | | 1,820 | | | 05/02/12 | | | | 37 | |
Barclays Bank PLC | | USD | | | 154 | | | MXN | | 1,992 | | | 06/15/12 | | | | (1 | ) |
Barclays Bank PLC | | USD | | | 5 | | | SGD | | 6 | | | 05/15/12 | | | | — | |
Barclays Bank PLC | | USD | | | 104 | | | SGD | | 131 | | | 05/15/12 | | | | 2 | |
Barclays Bank PLC | | EUR | | | 340 | | | USD | | 450 | | | 06/04/12 | | | | (1 | ) |
Barclays Bank PLC | | EUR | | | 32 | | | USD | | 42 | | | 06/14/12 | | | | — | |
Barclays Bank PLC | | EUR | | | 5,574 | | | USD | | 7,295 | | | 07/16/12 | | | | (86 | ) |
Barclays Bank PLC | | GBP | | | 1,820 | | | USD | | 2,917 | | | 06/01/12 | | | | (37 | ) |
Citibank | | USD | | | 298 | | | CAD | | 292 | | | 05/01/12 | | | | (2 | ) |
Citibank | | USD | | | 267 | | | EUR | | 200 | | | 06/14/12 | | | | (2 | ) |
Citibank | | USD | | | 480 | | | GBP | | 300 | | | 05/02/12 | | | | 7 | |
Citibank | | CAD | | | 292 | | | USD | | 297 | | | 06/21/12 | | | | 2 | |
Citibank | | CAD | | | 7,029 | | | USD | | 7,061 | | | 06/21/12 | | | | (46 | ) |
Citibank | | EUR | | | 2,936 | | | USD | | 3,886 | | | 05/02/12 | | | | — | |
Citibank | | EUR | | | 5,678 | | | USD | | 7,476 | | | 05/02/12 | | | | (40 | ) |
Credit Suisse First Boston | | AUD | | | 3,218 | | | USD | | 3,316 | | | 06/07/12 | | | | (24 | ) |
Credit Suisse First Boston | | CAD | | | 2,996 | | | USD | | 3,016 | | | 06/21/12 | | | | (13 | ) |
Credit Suisse First Boston | | EUR | | | 5,574 | | | USD | | 7,303 | | | 07/16/12 | | | | (79 | ) |
Deutsche Bank AG | | USD | | | 265 | | | EUR | | 200 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | USD | | | 133 | | | EUR | | 100 | | | 06/14/12 | | | | — | |
Deutsche Bank AG | | USD | | | 262 | | | EUR | | 201 | | | 06/14/12 | | | | 4 | |
Deutsche Bank AG | | USD | | | 265 | | | EUR | | 200 | | | 06/14/12 | | | | (1 | ) |
Deutsche Bank AG | | USD | | | 398 | | | EUR | | 300 | | | 06/14/12 | | | | (1 | ) |
Deutsche Bank AG | | USD | | | 664 | | | EUR | | 500 | | | 06/14/12 | | | | (2 | ) |
Deutsche Bank AG | | USD | | | 136 | | | EUR | | 104 | | | 07/16/12 | | | | 2 | |
Deutsche Bank AG | | USD | | | 394 | | | EUR | | 300 | | | 07/16/12 | | | | 3 | |
Deutsche Bank AG | | USD | | | 477 | | | GBP | | 300 | | | 05/02/12 | | | | 10 | |
Deutsche Bank AG | | USD | | | 990 | | | GBP | | 622 | | | 05/02/12 | | | | 20 | |
Deutsche Bank AG | | EUR | | | 5,574 | | | USD | | 7,307 | | | 07/16/12 | | | | (74 | ) |
Deutsche Bank AG | | GBP | | | 4,061 | | | USD | | 6,431 | | | 05/02/12 | | | | (159 | ) |
Deutsche Bank AG | | SGD | | | 706 | | | USD | | 566 | | | 05/15/12 | | | | (5 | ) |
Goldman Sachs | | USD | | | 548 | | | BRL | | 1,035 | | | 06/04/12 | | | | (9 | ) |
HSBC Bank PLC | | USD | | | 29 | | | MXN | | 379 | | | 06/15/12 | | | | — | |
HSBC Bank PLC | | JPY | | | 122,142 | | | USD | | 1,503 | | | 05/22/12 | | | | (28 | ) |
JPMorgan Chase Bank | | USD | | | 18,756 | | | EUR | | 14,291 | | | 05/02/12 | | | | 162 | |
JPMorgan Chase Bank | | USD | | | 133 | | | EUR | | 100 | | | 06/14/12 | | | | (1 | ) |
JPMorgan Chase Bank | | USD | | | 923 | | | EUR | | 700 | | | 06/14/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 1,721 | | | EUR | | 1,300 | | | 06/14/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 665 | | | GBP | | 419 | | | 05/02/12 | | | | 15 | |
JPMorgan Chase Bank | | USD | | | 453 | | | SGD | | 570 | | | 05/15/12 | | | | 7 | |
JPMorgan Chase Bank | | CAD | | | 2,979 | | | USD | | 3,012 | | | 06/21/12 | | | | — | |
JPMorgan Chase Bank | | EUR | | | 5,677 | | | USD | | 7,481 | | | 05/02/12 | | | | (34 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 334 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
JPMorgan Chase Bank | | EUR | | | 1,562 | | | USD | | 2,050 | | | 05/22/12 | | | | (18 | ) |
JPMorgan Chase Bank | | EUR | | | 14,291 | | | USD | | 18,758 | | | 06/01/12 | | | | (161 | ) |
JPMorgan Chase Bank | | EUR | | | 100 | | | USD | | 133 | | | 06/14/12 | | | | — | |
JPMorgan Chase Bank | | JPY | | | 57,528 | | | USD | | 715 | | | 05/22/12 | | | | (6 | ) |
Morgan Stanley & Co., Inc. | | USD | | | 100 | | | BRL | | 185 | | | 06/04/12 | | | | (4 | ) |
Morgan Stanley & Co., Inc. | | USD | | | 250 | | | BRL | | 462 | | | 06/04/12 | | | | (9 | ) |
Morgan Stanley & Co., Inc. | | USD | | | 1,324 | | | EUR | | 1,000 | | | 06/14/12 | | | | — | |
Morgan Stanley & Co., Inc. | | USD | | | 393 | | | EUR | | 300 | | | 07/16/12 | | | | 4 | |
Morgan Stanley & Co., Inc. | | BRL | | | 2,422 | | | USD | | 1,386 | | | 06/04/12 | | | | 124 | |
Royal Bank of Canada | | USD | | | 544 | | | EUR | | 408 | | | 06/14/12 | | | | (4 | ) |
Royal Bank of Canada | | USD | | | 160 | | | GBP | | 100 | | | 05/02/12 | | | | 2 | |
UBS AG | | USD | | | 100 | | | BRL | | 185 | | | 06/04/12 | | | | (3 | ) |
UBS AG | | USD | | | 100 | | | BRL | | 185 | | | 06/04/12 | | | | (3 | ) |
UBS AG | | USD | | | 657 | | | EUR | | 500 | | | 06/14/12 | | | | 5 | |
UBS AG | | USD | | | 407 | | | EUR | | 310 | | | 07/16/12 | | | | 3 | |
UBS AG | | USD | | | 523 | | | EUR | | 400 | | | 07/16/12 | | | | 6 | |
UBS AG | | USD | | | 661 | | | EUR | | 500 | | | 07/16/12 | | | | 1 | |
UBS AG | | USD | | | 794 | | | GBP | | 500 | | | 05/02/12 | | | | 17 | |
UBS AG | | USD | | | 8 | | | MXN | | 102 | | | 06/15/12 | | | | — | |
UBS AG | | USD | | | 1 | | | SGD | | 1 | | | 08/03/12 | | | | — | |
UBS AG | | CAD | | | 2,911 | | | USD | | 2,930 | | | 06/21/12 | | | | (13 | ) |
UBS AG | | SGD | | | 1 | | | USD | | 1 | | | 05/15/12 | | | | — | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | (392 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Interest Rate Swap Contracts | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Notional
Amount | | | Fund Receives | | Fund Pays | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
Goldman Sachs | | USD | | | 3,000 | | | 1.500% | | Three Month LIBOR | | | 03/18/16 | | | | 3 | |
| | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $— | | | | | | | 3 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 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, Inc. | | JPMorgan | | | 2.057% | | | USD | | | 500 | | | | 5.000% | | | | 06/20/15 | | | | 46 | |
Ally Financial, Inc. | | Goldman Sachs | | | 3.107% | | | USD | | | 600 | | | | 5.000% | | | | 06/20/14 | | | | 29 | |
Berkshire Hathaway, Inc. | | Bank of America | | | 1.139% | | | USD | | | 400 | | | | 1.000% | | | | 03/20/16 | | | | (2 | ) |
Berkshire Hathaway, Inc. | | Deutsche Bank | | | 1.330% | | | USD | | | 300 | | | | 1.000% | | | | 06/20/17 | | | | (4 | ) |
Credit Agricole (London) | | Citibank | | | 2.314% | | | USD | | | 300 | | | | (1.000% | ) | | | 03/20/14 | | | | 8 | |
Credit Agricole (London) | | Credit Suisse Financial Products | | | 4.900% | | | EUR | | | 300 | | | | 3.000% | | | | 06/20/16 | | | | (23 | ) |
Credit Agricole (London) | | Deutsche Bank | | | 4.900% | | | EUR | | | 300 | | | | 3.000% | | | | 06/20/16 | | | | (23 | ) |
Export-Import Bank of China | | Deutsche Bank | | | 1.478% | | | USD | | | 700 | | | | 1.000% | | | | 12/20/16 | | | | (14 | ) |
Export-Import Bank of Korea | | Deutsche Bank | | | 1.203% | | | USD | | | 300 | | | | 1.000% | | | | 12/20/16 | | | | (2 | ) |
Gazprom | | Deutsche Bank | | | 0.773% | | | USD | | | 1,200 | | | | 1.000% | | | | 12/20/12 | | | | 4 | |
Gazprom | | UBS | | | 0.773% | | | USD | | | 1,200 | | | | 1.000% | | | | 12/20/12 | | | | 4 | |
GE Capital Corp. | | Barclays Bank PLC | | | 0.542% | | | USD | | | 700 | | | | 1.670% | | | | 03/20/13 | | | | 9 | |
GE Capital Corp. | | BNP Paribas | | | 0.542% | | | USD | | | 1,200 | | | | 1.300% | | | | 03/20/13 | | | | 10 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 335 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | | | |
| Corporate Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
GE Capital Corp. | | BNP Paribas | | | 0.542% | | | USD | | | 100 | | | | 1.250% | | | | 03/20/13 | | | | 1 | |
GE Capital Corp. | | Citibank | | | 0.840% | | | USD | | | 200 | | | | 4.325% | | | | 12/20/13 | | | | 13 | |
GE Capital Corp. | | Citibank | | | 0.840% | | | USD | | | 200 | | | | 4.200% | | | | 12/20/13 | | | | 12 | |
GE Capital Corp. | | Deutsche Bank | | | 0.840% | | | USD | | | 200 | | | | 4.230% | | | | 12/20/13 | | | | 12 | |
GE Capital Corp. | | Deutsche Bank | | | 0.840% | | | USD | | | 100 | | | | 4.900% | | | | 12/20/13 | | | | 7 | |
MetLife, Inc. | | JPMorgan | | | 1.160% | | | USD | | | 1,400 | | | | 1.000% | | | | 09/20/13 | | | | (2 | ) |
MetLife, Inc. | | Citibank | | | 1.708% | | | USD | | | 100 | | | | 1.000% | | | | 12/20/14 | | | | (2 | ) |
Petbra | | Deutsche Bank | | | 0.580% | | | USD | | | 600 | | | | 1.000% | | | | 09/20/12 | | | | 2 | |
Wells Fargo & Co. | | Goldman Sachs | | | 0.300% | | | USD | | | 1,100 | | | | 1.000% | | | | 06/20/13 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Total Market Value on Open Corporate Issues Premiums Paid (Received) - ($114) | | | | | | | | | | | | 95 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Credit Indices | |
Reference
Entity | | Counterparty | | Notional
Amount | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | |
Dow Jones CDX Index | | Barclays Bank PLC | | | USD | | | 6,200 | | | 5.000% | | | | 06/20/15 | | | | 569 | |
Dow Jones CDX Index | | Barclays Bank PLC | | | USD | | | 1,000 | | | 5.000% | | | | 06/20/15 | | | | 92 | |
Dow Jones CDX Index | | Citigroup Global Markets | | | USD | | | 26,400 | | | (1.000% | ) | | | 06/20/17 | | | | (100 | ) |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | 200 | | | 5.000% | | | | 12/20/15 | | | | 20 | |
Dow Jones CDX Index | | Deutsche Bank | | | USD | | | 772 | | | 0.708% | | | | 12/20/12 | | | | 4 | |
Dow Jones CDX Index | | HSBC | | | USD | | | 1,700 | | | 5.000% | | | | 06/20/15 | | | | 156 | |
Dow Jones CDX Index | | JPMorgan | | | USD | | | 96 | | | 0.553% | | | | 12/20/17 | | | | 2 | |
Dow Jones CDX Index | | Morgan Stanley | | | USD | | | 300 | | | 5.000% | | | | 06/20/15 | | | | 27 | |
Dow Jones CDX Index | | Morgan Stanley | | | USD | | | 200 | | | 5.000% | | | | 12/20/15 | | | | 20 | |
Dow Jones CDX Index | | Pershing LLC 1st Republic P.B. | | | USD | | | 96 | | | 0.548% | | | | 12/20/17 | | | | 2 | |
Markit iTraxx Europe Series 16 Index | | Bank of America | | | EUR | | | 2,000 | | | (1.000% | ) | | | 12/20/16 | | | | 42 | |
Markit iTraxx Europe Series 16 Index | | Citibank | | | EUR | | | 1,900 | | | (1.000% | ) | | | 12/20/16 | | | | 40 | |
Markit iTraxx Europe Series 16 Index | | Deutsche Bank | | | EUR | | | 4,850 | | | (1.000% | ) | | | 12/20/16 | | | | 103 | |
Markit iTraxx Europe Series 16 Index | | Goldman Sachs | | | EUR | | | 3,800 | | | (1.000% | ) | | | 12/20/16 | | | | 81 | |
Markit iTraxx Europe Series 16 Index | | JPMorgan | | | EUR | | | 2,150 | | | (1.000% | ) | | | 12/20/16 | | | | 46 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Credit Indices Premiums Paid (Received) - $1,032 | | | | | | | | 1,104 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Abu Dhabi | | Morgan Stanley | | | 0.970% | | | USD | | | 900 | | | | 1.000% | | | | 12/20/15 | | | | 2 | |
Australia Commonwealth Government Bond | | Bank of America | | | 0.772% | | | USD | | | 300 | | | | 1.000% | | | | 06/20/17 | | | | 4 | |
Australia Commonwealth Government Bond | | Citibank | | | 0.772% | | | USD | | | 200 | | | | 1.000% | | | | 06/20/17 | | | | 3 | |
Brazil Government International Bond | | BNP Paribas | | | 0.407% | | | USD | | | 1,700 | | | | 1.000% | | | | 12/20/12 | | | | 8 | |
Brazil Government International Bond | | Citibank | | | 0.407% | | | USD | | | 1,100 | | | | 1.000% | | | | 12/20/12 | | | | 5 | |
Brazil Government International Bond | | Goldman Sachs | | | 0.407% | | | USD | | | 1,600 | | | | 1.000% | | | | 12/20/12 | | | | 8 | |
Brazil Government International Bond | | Barclays Bank PLC | | | 0.936% | | | USD | | | 1,700 | | | | 1.000% | | | | 09/20/15 | | | | 6 | |
Brazil Government International Bond | | Citibank | | | 0.936% | | | USD | | | 1,000 | | | | 1.000% | | | | 09/20/15 | | | | 4 | |
Brazil Government International Bond | | HSBC | | | 0.936% | | | USD | | | 700 | | | | 1.000% | | | | 09/20/15 | | | | 3 | |
Brazil Government International Bond | | UBS | | | 0.936% | | | USD | | | 500 | | | | 1.000% | | | | 09/20/15 | | | | 2 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 336 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Brazil Government International Bond | | Citibank | | | 1.014% | | | USD | | | 3,300 | | | | 1.000% | | | | 03/20/16 | | | | 1 | |
Brazil Government International Bond | | HSBC | | | 1.014% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/16 | | | | — | |
Brazil Government International Bond | | Credit Suisse Financial Products | | | 1.047% | | | USD | | | 2,200 | | | | 1.000% | | | | 06/20/16 | | | | (3 | ) |
Brazil Government International Bond | | HSBC | | | 1.238% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/17 | | | | (8 | ) |
China Government International Bond | | Barclays Bank PLC | | | 0.260% | | | USD | | | 700 | | | | 1.000% | | | | 12/20/12 | | | | 4 | |
France Government International Bond | | Citibank | | | 1.617% | | | USD | | | 200 | | | | 0.250% | | | | 12/20/15 | | | | (9 | ) |
France Government International Bond | | Citibank | | | 1.777% | | | USD | | | 700 | | | | 0.250% | | | | 09/20/16 | | | | (43 | ) |
France Government International Bond | | Deutsche Bank | | | 1.777% | | | USD | | | 2,000 | | | | 0.250% | | | | 09/20/16 | | | | (122 | ) |
France Government International Bond | | HSBC | | | 1.777% | | | USD | | | 1,700 | | | | 0.250% | | | | 09/20/16 | | | | (104 | ) |
France Government International Bond | | Morgan Stanley | | | 1.777% | | | USD | | | 2,600 | | | | 0.250% | | | | 09/20/16 | | | | (159 | ) |
Germany Government International Bond | | Morgan Stanley | | | 0.722% | | | USD | | | 2,900 | | | | 0.250% | | | | 09/20/16 | | | | (52 | ) |
Germany Government International Bond | | Barclays Bank PLC | | | 0.863% | | | USD | | | 2,100 | | | | 0.250% | | | | 06/20/17 | | | | (58 | ) |
Germany Government International Bond | | Citibank | | | 0.863% | | | USD | | | 900 | | | | 0.250% | | | | 06/20/17 | | | | (25 | ) |
Japan Government International Bond | | Barclays Bank PLC | | | 0.587% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/15 | | | | 12 | |
Japan Government International Bond | | Bank of America | | | 0.692% | | | USD | | | 500 | | | | 1.000% | | | | 12/20/15 | | | | 6 | |
Japan Government International Bond | | Barclays Bank PLC | | | 0.692% | | | USD | | | 500 | | | | 1.000% | | | | 12/20/15 | | | | 6 | |
Japan Government International Bond | | Morgan Stanley | | | 0.692% | | | USD | | | 500 | | | | 1.000% | | | | 12/20/15 | | | | 6 | |
Japan Government International Bond | | UBS | | | 0.692% | | | USD | | | 500 | | | | 1.000% | | | | 12/20/15 | | | | 6 | |
Japan Government International Bond | | Bank of America | | | 0.733% | | | USD | | | 1,100 | | | | 1.000% | | | | 03/20/16 | | | | 13 | |
Japan Government International Bond | | Bank of America | | | 0.733% | | | USD | | | 800 | | | | 1.000% | | | | 03/20/16 | | | | 10 | |
Japan Government International Bond | | Barclays Bank PLC | | | 0.733% | | | USD | | | 1,400 | | | | 1.000% | | | | 03/20/16 | | | | 17 | |
Japan Government International Bond | | JPMorgan | | | 0.733% | | | USD | | | 1,200 | | | | 1.000% | | | | 03/20/16 | | | | 14 | |
Japan Government International Bond | | JPMorgan | | | 0.733% | | | USD | | | 700 | | | | 1.000% | | | | 03/20/16 | | | | 8 | |
Japan Government International Bond | | Deutsche Bank | | | 0.953% | | | USD | | | 1,800 | | | | 1.000% | | | | 06/20/17 | | | | 8 | |
Japan Government International Bond | | Goldman Sachs | | | 0.953% | | | USD | | | 3,000 | | | | 1.000% | | | | 06/20/17 | | | | 13 | |
Korea Government International Bond | | Deutsche Bank | | | 0.431% | | | USD | | | 900 | | | | 1.000% | | | | 12/20/12 | | | | 5 | |
Korea Government International Bond | | Deutsche Bank | | | 0.431% | | | USD | | | 800 | | | | 1.000% | | | | 12/20/12 | | | | 4 | |
Korea Government International Bond | | Barclays Bank PLC | | | 1.203% | | | USD | | | 500 | | | | 1.000% | | | | 06/20/17 | | | | (4 | ) |
Korea Government International Bond | | UBS | | | 1.203% | | | USD | | | 1,100 | | | | 1.000% | | | | 06/20/17 | | | | (10 | ) |
Mexico Government International Bond | | Citibank | | | 0.284% | | | USD | | | 400 | | | | 1.000% | | | | 12/20/12 | | | | 2 | |
Mexico Government International Bond | | Goldman Sachs | | | 0.284% | | | USD | | | 1,900 | | | | 1.000% | | | | 12/20/12 | | | | 11 | |
Mexico Government International Bond | | JPMorgan | | | 0.284% | | | USD | | | 2,500 | | | | 1.000% | | | | 12/20/12 | | | | 14 | |
Mexico Government International Bond | | Barclays Bank PLC | | | 0.875% | | | USD | | | 1,700 | | | | 1.000% | | | | 09/20/15 | | | | 9 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.951% | | | USD | | | 1,100 | | | | 1.000% | | | | 03/20/16 | | | | 4 | |
Mexico Government International Bond | | Deutsche Bank | | | 0.982% | | | USD | | | 2,500 | | | | 1.000% | | | | 06/20/16 | | | | 7 | |
Mexico Government International Bond | | HSBC | | | 1.482% | | | USD | | | 1,300 | | | | 1.000% | | | | 03/20/21 | | | | (48 | ) |
Russia Government International Bond | | HSBC | | | 0.541% | | | USD | | | 2,200 | | | | 1.000% | | | | 12/20/12 | | | | 9 | |
United Kingdom Gilt | | BNP Paribas | | | 0.271% | | | USD | | | 400 | | | | 1.000% | | | | 03/20/15 | | | | 9 | |
United Kingdom Gilt | | Goldman Sachs | | | 0.271% | | | USD | | | 100 | | | | 1.000% | | | | 03/20/15 | | | | 2 | |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 200 | | | | 1.000% | | | | 03/20/15 | | | | 4 | |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/15 | | | | 7 | |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 100 | | | | 1.000% | | | | 03/20/15 | | | | 2 | |
United Kingdom Gilt | | JPMorgan | | | 0.271% | | | USD | | | 100 | | | | 1.000% | | | | 03/20/15 | | | | 2 | |
United Kingdom Gilt | | Citibank | | | 0.433% | | | USD | | | 500 | | | | 1.000% | | | | 03/20/16 | | | | 12 | |
United Kingdom Gilt | | Deutsche Bank | | | 0.433% | | | USD | | | 400 | | | | 1.000% | | | | 03/20/16 | | | | 9 | |
United Kingdom Gilt | | Goldman Sachs | | | 0.433% | | | USD | | | 500 | | | | 1.000% | | | | 03/20/16 | | | | 12 | |
United Kingdom Gilt | | Goldman Sachs | | | 0.433% | | | USD | | | 300 | | | | 1.000% | | | | 03/20/16 | | | | 7 | |
United Kingdom Gilt | | UBS | | | 0.469% | | | USD | | | 800 | | | | 1.000% | | | | 06/20/16 | | | | 18 | |
United Kingdom Gilt | | Goldman Sachs | | | 0.521% | | | USD | | | 1,300 | | | | 1.000% | | | | 09/20/16 | | | | 29 | |
United Kingdom Gilt | | Morgan Stanley | | | 0.521% | | | USD | | | 5,500 | | | | 1.000% | | | | 09/20/16 | | | | 120 | |
United Kingdom Gilt | | Morgan Stanley | | | 0.521% | | | USD | | | 1,100 | | | | 1.000% | | | | 09/20/16 | | | | 24 | |
United Kingdom Gilt | | Goldman Sachs | | | 0.645% | | | USD | | | 1,000 | | | | 1.000% | | | | 06/20/17 | | | | 19 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 337 |
Russell Investment Company
Russell Short Duration Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sovereign Issues | |
Reference
Entity | | Counterparty | | Implied
Credit
Spread | | | Notional
Amount | | | Fund (Pays)/
Receives
Fixed Rate | | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
United States Government Bond | | BNP Paribas | | | 0.328% | | | EUR | | | 2,000 | | | | 0.250% | | | | 09/20/16 | | | | (11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Total Market Value on Open Sovereign Issues Premiums Paid (Received) - ($461) | | | | | | | | | | | | (146 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Total Market Value on Open Credit Default Swap Contracts Premiums Paid (Received) - $457 | | | | | | | | | | | | 1,053 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 86,966 | | | $ | 1,500 | | | $ | 88,466 | | | | 8.0 | |
Corporate Bonds and Notes | | | — | | | | 131,432 | | | | 558 | | | | 131,990 | | | | 11.9 | |
International Debt | | | — | | | | 135,745 | | | | 3,645 | | | | 139,390 | | | | 12.6 | |
Loan Agreements | | | — | | | | 282 | | | | — | | | | 282 | | | | — | * |
Mortgage-Backed Securities | | | — | | | | 537,236 | | | | 6,657 | | | | 543,893 | | | | 49.1 | |
Municipal Bonds | | | — | | | | 1,001 | | | | — | | | | 1,001 | | | | 0.1 | |
Non-US Bonds | | | — | | | | 25,518 | | | | — | | | | 25,518 | | | | 2.3 | |
United States Government Agencies | | | — | | | | 24,598 | | | | — | | | | 24,598 | | | | 2.2 | |
United States Government Treasuries | | | — | | | | 171,910 | | | | — | | | | 171,910 | | | | 15.5 | |
Preferred Stocks | | | 336 | | | | — | | | | 1,638 | | | | 1,974 | | | | 0.2 | |
Short-Term Investments | | | — | | | | 214,222 | | | | 366 | | | | 214,588 | | | | 19.4 | |
Repurchase Agreements | | | — | | | | 39,700 | | | | — | | | | 39,700 | | | | 3.6 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 336 | | | | 1,368,610 | | | | 14,364 | | | | 1,383,310 | | | | 124.9 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (24.9 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | (115 | ) | | | — | | | | — | | | | (115 | ) | | | (— | )* |
Options Written | | | — | | | | (22 | ) | | | — | | | | (22 | ) | | | (— | )* |
Foreign Currency Exchange Contracts | | | — | | | | (392 | ) | | | — | | | | (392 | ) | | | (— | )* |
Interest Rate Swap Contracts | | | — | | | | — | | | | 3 | | | | 3 | | | | — | * |
Credit Default Swap Contracts | | | — | | | | 562 | | | | 34 | | | | 596 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | (115 | ) | | $ | 148 | | | $ | 37 | | | $ | 70 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 338 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Presentation of Portfolio Holdings, continued — April 30, 2012 (Unaudited)
Amounts in thousands
For a description of the levels see note 2 in the Notes to Financial Statements.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
The significant inputs used in determining the fair values of Level 3 securities were as follows:
| | | | | | | | | | |
| Category | | Inputs | | Market Value
$ | | | % of Level 3
Instruments’
Total Market Value | |
| | | | | | | | | | |
Asset-Backed Securities | | Broker Quote | | $ | 1,500 | | | | 10.4 | |
Corporate Bonds and Notes | | Broker Quote | | | 558 | | | | 3.9 | |
International Debt | | Broker Quote | | | 3,645 | | | | 25.3 | |
Mortgage-Backed Securities | | Broker Quote | | | 6,657 | | | | 46.3 | |
Preferred Stocks | | Investment Manager Fair Value Recommendation | | | 1,638 | | | | 11.4 | |
Short-Term Investments | | Broker Quote | | | 366 | | | | 2.5 | |
Interest Rate Swap Contracts | | Other | | | 3 | | | | — | * |
Credit Default Swap Contracts | | Other | | | 34 | | | | 0.2 | |
| | | | | | | | | | |
| | | | $ | 14,401 | | | | 100.0 | |
| | | | | | | | | | |
| * | Less than .05% of Level 3 Instruments’ Total Market Value. |
A reconciliation of investments in which significant unobservable input (Level 3) were used in determining a value for the period ending April 30, 2012 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Category and
Subcategory | | Beginning
Balance
11/1/2011 | | | Gross
Purchases | | | Gross
Sales | | | Accrued
Discounts/
(Premiums) | | | Realized
Gain/
(Loss) | | | Net
Transfers
into
Level 3 | | | Net
Transfers
out of
Level 3 | | | Net change in
Unrealized
Appreciation/
(Depreciation) | | | Ending
Balance at
4/30/2012 | | | Net change in
Unrealized
Appreciation/
(Depreciation)
on Investments
held as of
4/30/2012 | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | $ | 599 | | | $ | 1,500 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 599 | | | $ | — | | | $ | 1,500 | | | $ | — | |
Corporate Bonds and Notes | | | 1,682 | | | | — | | | | — | | | | — | | | | 2 | | | | — | | | | 1,136 | | | | 10 | | | | 558 | | | | — | |
International Debt | | | 854 | | | | 3,649 | | | | 35 | | | | 3 | | | | 1 | | | | — | | | | 831 | | | | 4 | | | | 3,645 | | | | (5 | ) |
Mortgage-Backed Securities | | | 5,016 | | | | 1,165 | | | | 735 | | | | (1 | ) | | | (3 | ) | | | 1,136 | | | | — | | | | 79 | | | | 6,657 | | | | 13 | |
Preferred Stocks | | | 1,648 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (10 | ) | | | 1,638 | | | | (10 | ) |
Short-Term Investments | | | — | | | | — | | | | 227 | | | | (6 | ) | | | (5 | ) | | | 599 | | | | — | | | | 5 | | | | 366 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 9,799 | | | | 6,314 | | | | 997 | | | | (4 | ) | | | (5 | ) | | | 1,735 | | | | 2,566 | | | | 88 | | | | 14,364 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options Written | | | (34 | ) | | | — | | | | — | | | | — | | | | 31 | | | | — | | | | — | | | | 3 | | | | — | | | | — | |
Interest Rate Swap Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3 | | | | 3 | | | | 3 | |
Credit Default Swap Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 34 | | | | 34 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments | | | (34 | ) | | | — | | | | — | | | | — | | | | 31 | | | | — | | | | — | | | | 40 | | | | 37 | | | | 37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 339 |
Russell Investment Company
Russell Short Duration Bond Fund
Fair Value of Derivative Instruments — April 30, 2012 (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 | | $ | — | | | $ | 488 | | | $ | — | |
Daily variation margin on futures contracts* | | | — | | | | — | | | | 154 | |
Interest rate swap contracts, at market value | | | — | | | | — | | | | 3 | |
Credit default swap contracts, at market value | | | 1,881 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 1,881 | | | $ | 488 | | | $ | 157 | |
| | | | | | | | | | | | |
Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 880 | | | $ | — | |
Daily variation margin on futures contracts* | | | — | | | | — | | | | 269 | |
Interest rate swap contracts, at market value | | | — | | | | — | | | | — | |
Credit default swap contracts, at market value | | | 828 | | | | — | | | | — | |
Options written, at market value | | | — | | | | — | | | | 22 | |
| | | | | | | | | | | | |
Total | | $ | 828 | | | $ | 880 | | | $ | 291 | |
| | | | | | | | | | | | |
| | | |
| 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 | | $ | — | | | $ | — | | | $ | (1,409 | ) |
Options Written | | | — | | | | — | | | | 298 | |
Credit default swap contracts | | | 307 | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | 1,939 | |
Foreign currency-related transactions | | | — | | | | 45 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 307 | | | $ | 45 | | | $ | 828 | |
| | | | | | | | | | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | (141 | ) |
Options Written | | | — | | | | — | | | | (158 | ) |
Credit default swap contracts | | | 838 | | | | — | | | | — | |
Interest rate swap contracts | | | — | | | | — | | | | (1,395 | ) |
Foreign currency-related transactions | | | — | | | | 1,433 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 838 | | | $ | 1,433 | | | $ | 1,638 | |
| | | | | | | | | | | | |
| * | | 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 and 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.
| | | | |
| | 340 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,375,428 | |
Investments, at market***, ***** | | | 1,383,310 | |
Cash | | | 1,825 | |
Cash (restricted) | | | 225 | |
Foreign currency holdings* | | | 162 | |
Unrealized appreciation on foreign currency exchange contracts | | | 488 | |
Receivables: | | | | |
Dividends and interest | | | 4,687 | |
Dividends from affiliated Russell money market funds | | | 11 | |
Investments sold | | | 147,964 | |
Fund shares sold | | | 2,047 | |
Daily variation margin on futures contracts | | | 3 | |
Prepaid expenses | | | 2 | |
Interest rate swap contracts, at market value**** | | | 3 | |
Credit default swap contracts, at market value*** | | | 1,881 | |
| | | | |
Total assets | | | 1,542,608 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to broker | | | 2,917 | |
Investments purchased | | | 428,714 | |
Fund shares redeemed | | | 1,091 | |
Accrued fees to affiliates | | | 589 | |
Other accrued expenses | | | 176 | |
Daily variation margin on futures contracts | | | 28 | |
Unrealized depreciation on foreign currency exchange contracts | | | 880 | |
Options written, at market value** | | | 22 | |
Credit default swap contracts, at market value*** | | | 828 | |
| | | | |
Total liabilities | | | 435,245 | |
| | | | |
| | | | |
Net Assets | | $ | 1,107,363 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 341 |
Russell Investment Company
Russell Short Duration Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 1,637 | |
Accumulated net realized gain (loss) | | | 3,770 | |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 7,882 | |
Futures contracts | | | (115 | ) |
Options written | | | 820 | |
Credit default swap contracts | | | 596 | |
Interest rate swap contracts | | | 3 | |
Foreign currency-related transactions | | | (392 | ) |
Other investments | | | (5 | ) |
Shares of beneficial interest | | | 570 | |
Additional paid-in capital | | | 1,092,597 | |
| | | | |
Net Assets | | $ | 1,107,363 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 19.42 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | | $ | 20.18 | |
Class A — Net assets | | $ | 37,258,685 | |
Class A — Shares outstanding ($.01 par value) | | | 1,918,151 | |
Net asset value per share: Class C(a) | | $ | 19.32 | |
Class C — Net assets | | $ | 121,487,149 | |
Class C — Shares outstanding ($.01 par value) | | | 6,287,773 | |
Net asset value per share: Class E(a) | | $ | 19.46 | |
Class E — Net assets | | $ | 19,961,881 | |
Class E — Shares outstanding ($.01 par value) | | | 1,025,814 | |
Net asset value per share: Class S(a) | | $ | 19.43 | |
Class S — Net assets | | $ | 642,352,035 | |
Class S — Shares outstanding ($.01 par value) | | | 33,054,418 | |
Net asset value per share: Class Y(a) | | $ | 19.44 | |
Class Y — Net assets | | $ | 286,303,268 | |
Class Y — Shares outstanding ($.01 par value) | | | 14,729,077 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 166 | |
** Premiums received on options written | | $ | 842 | |
*** Credit default swap contracts - premiums paid (received) | | $ | 457 | |
**** Interest rate swap contracts - premiums paid (received) | | $ | — | |
***** Investments in affiliates, Russell U.S. Cash Management Fund | | $ | 61,047 | |
| (a) | 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.
| | | | |
| | 342 | | | Russell Short Duration Bond Fund |
Russell Investment Company
Russell Short Duration Bond Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 42 | |
Dividends from affiliated Russell money market funds | | | 50 | |
Interest | | | 13,287 | |
| | | | |
Total investment income | | | 13,379 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 2,490 | |
Administrative fees | | | 277 | |
Custodian fees | | | 186 | |
Distribution fees - Class A | | | 45 | |
Distribution fees - Class C | | | 422 | |
Transfer agent fees - Class A | | | 32 | |
Transfer agent fees - Class C | | | 101 | |
Transfer agent fees - Class E | | | 18 | |
Transfer agent fees - Class S | | | 572 | |
Transfer agent fees - Class Y | | | 7 | |
Professional fees | | | 68 | |
Registration fees | | | 75 | |
Shareholder servicing fees - Class C | | | 140 | |
Shareholder servicing fees - Class E | | | 26 | |
Trustees’ fees | | | 11 | |
Printing fees | | | 4 | |
Miscellaneous | | | 12 | |
| | | | |
Expenses before reductions | | | 4,486 | |
Expense reductions | | | (600 | ) |
| | | | |
Net expenses | | | 3,886 | |
| | | | |
Net investment income (loss) | | | 9,493 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 8,811 | |
Futures contracts | | | (1,409 | ) |
Options written | | | 298 | |
Credit default swap contracts | | | 307 | |
Interest rate swap contracts | | | 1,939 | |
Foreign currency-related transactions | | | 285 | |
| | | | |
Net realized gain (loss) | | | 10,231 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | 5,332 | |
Futures contracts | | | (141 | ) |
Options written | | | (158 | ) |
Credit default swap contracts | | | 838 | |
Interest rate swap contracts | | | (1,395 | ) |
Investment matured | | | 603 | |
Foreign currency-related transactions | | | 1,390 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 6,469 | |
| | | | |
Net realized and unrealized gain (loss) | | | 16,700 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 26,193 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 343 |
Russell Investment Company
Russell Short Duration Bond Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 9,493 | | | $ | 18,177 | |
Net realized gain (loss) | | | 10,231 | | | | 1,969 | |
Net change in unrealized appreciation (depreciation) | | | 6,469 | | | | (17,876 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 26,193 | | | | 2,270 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (290 | ) | | | (503 | ) |
Class C | | | (573 | ) | | | (1,323 | ) |
Class E | | | (166 | ) | | | (417 | ) |
Class S | | | (5,814 | ) | | | (11,839 | ) |
Class Y | | | (2,859 | ) | | | (5,199 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (9,702 | ) | | | (19,281 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (2,979 | ) | | | 178,705 | |
Fund Reimbursements | | | — | | | | 7 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 13,512 | | | | 161,701 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,093,851 | | | | 932,150 | |
| | | | | | | | |
End of period | | $ | 1,107,363 | | | $ | 1,093,851 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 1,637 | | | $ | 1,846 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 344 | | | Russell Short Duration Bond Fund |
(This page intentionally left blank)
Russell Investment Company
Russell Short Duration Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | |
$
Distributions
from Net
Investment Income | | | $
Total
Distributions | | | $
Net Asset Value,
End of
Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.15 | | | | .15 | | | | .28 | | | | .43 | | | | (.16 | ) | | | (.16 | ) | | | 19.42 | |
October 31, 2011 | | | 19.48 | | | | .34 | | | | (.31 | ) | | | .03 | | | | (.36 | ) | | | (.36 | ) | | | 19.15 | |
October 31, 2010 | | | 18.86 | | | | .43 | | | | .73 | | | | 1.16 | | | | (.54 | ) | | | (.54 | ) | | | 19.48 | |
October 31, 2009 | | | 17.22 | | | | .64 | | | | 1.64 | | | | 2.28 | | | | (.64 | ) | | | (.64 | ) | | | 18.86 | |
October 31, 2008 | | | 18.81 | | | | .74 | | | | (1.55 | ) | | | (.81 | ) | | | (.78 | ) | | | (.78 | ) | | | 17.22 | |
October 31, 2007(1) | | | 18.71 | | | | .49 | | | | .09 | | | | .58 | | | | (.48 | ) | | | (.48 | ) | | | 18.81 | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.06 | | | | .08 | | | | .28 | | | | .36 | | | | (.10 | ) | | | (.10 | ) | | | 19.32 | |
October 31, 2011 | | | 19.41 | | | | .19 | | | | (.31 | ) | | | (.12 | ) | | | (.23 | ) | | | (.23 | ) | | | 19.06 | |
October 31, 2010 | | | 18.79 | | | | .28 | | | | .74 | | | | 1.02 | | | | (.40 | ) | | | (.40 | ) | | | 19.41 | |
October 31, 2009 | | | 17.17 | | | | .50 | | | | 1.64 | | | | 2.14 | | | | (.52 | ) | | | (.52 | ) | | | 18.89 | |
October 31, 2008 | | | 18.76 | | | | .60 | | | | (1.55 | ) | | | (.95 | ) | | | (.64 | ) | | | (.64 | ) | | | 17.17 | |
October 31, 2007 | | | 18.66 | | | | .59 | | | | .14 | | | | .73 | | | | (.63 | ) | | | (.63 | ) | | | 18.76 | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.18 | | | | .15 | | | | .29 | | | | .44 | | | | (.16 | ) | | | (.16 | ) | | | 19.46 | |
October 31, 2011 | | | 19.52 | | | | .34 | | | | (.32 | ) | | | .02 | | | | (.36 | ) | | | (.36 | ) | | | 19.18 | |
October 31, 2010 | | | 18.89 | | | | .43 | | | | .73 | | | | 1.16 | | | | (.53 | ) | | | (.53 | ) | | | 19.52 | |
October 31, 2009 | | | 17.24 | | | | .66 | | | | 1.62 | | | | 2.28 | | | | (.63 | ) | | | (.63 | ) | | | 18.89 | |
October 31, 2008 | | | 18.82 | | | | .74 | | | | (1.55 | ) | | | (.81 | ) | | | (.77 | ) | | | (.77 | ) | | | 17.24 | |
October 31, 2007 | | | 18.73 | | | | .72 | | | | .14 | | | | .86 | | | | (.77 | ) | | | (.77 | ) | | | 18.82 | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.15 | | | | .17 | | | | .29 | | | | .46 | | | | (.18 | ) | | | (.18 | ) | | | 19.43 | |
October 31, 2011 | | | 19.49 | | | | .39 | | | | (.32 | ) | | | .07 | | | | (.41 | ) | | | (.41 | ) | | | 19.15 | |
October 31, 2010 | | | 18.86 | | | | .47 | | | | .74 | | | | 1.21 | | | | (.58 | ) | | | (.58 | ) | | | 19.49 | |
October 31, 2009 | | | 17.21 | | | | .70 | | | | 1.63 | | | | 2.33 | | | | (.68 | ) | | | (.68 | ) | | | 18.86 | |
October 31, 2008 | | | 18.79 | | | | .79 | | | | (1.55 | ) | | | (.76 | ) | | | (.82 | ) | | | (.82 | ) | | | 17.21 | |
October 31, 2007 | | | 18.70 | | | | .75 | | | | .16 | | | | .91 | | | | (.82 | ) | | | (.82 | ) | | | 18.79 | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 19.15 | | | | .18 | | | | .29 | | | | .47 | | | | (.18 | ) | | | (.18 | ) | | | 19.44 | |
October 31, 2011 | | | 19.49 | | | | .41 | | | | (.32 | ) | | | .09 | | | | (.43 | ) | | | (.43 | ) | | | 19.15 | |
October 31, 2010 | | | 18.86 | | | | .50 | | | | .72 | | | | 1.22 | | | | (.60 | ) | | | (.60 | ) | | | 19.49 | |
October 31, 2009 | | | 17.21 | | | | .72 | | | | 1.63 | | | | 2.35 | | | | (.70 | ) | | | (.70 | ) | | | 18.86 | |
October 31, 2008(4) | | | 18.11 | | | | .08 | | | | (.78 | ) | | | (.70 | ) | | | (.20 | ) | | | (.20 | ) | | | 17.21 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 346 | | | Russell Short Duration Bond Fund |
| | | | | | | | | | | | | | | | | | | | | | |
%
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 2.23 | | | | 37,259 | | | | 1.00 | | | | .87 | | | | 1.57 | | | | 143 | |
| | .18 | | | | 29,061 | | | | 1.01 | | | | .88 | | | | 1.75 | | | | 339 | |
| | 6.23 | | | | 25,171 | | | | 1.02 | | | | .94 | | | | 2.25 | | | | 195 | |
| | 13.58 | | | | 13,815 | | | | 1.04 | | | | .96 | | | | 3.55 | | | | 217 | |
| | (4.60 | ) | | | 4,566 | | | | .99 | | | | .96 | | | | 3.98 | | | | 146 | |
| | 3.16 | | | | 1,363 | | | | .93 | | | | .92 | | | | 3.92 | | | | 173 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1.88 | | | | 121,487 | | | | 1.75 | | | | 1.62 | | | | .79 | | | | 143 | |
| | (.60 | ) | | | 112,900 | | | | 1.76 | | | | 1.63 | | | | 1.01 | | | | 339 | |
| | 5.44 | | | | 109,450 | | | | 1.77 | | | | 1.69 | | | | 1.48 | | | | 195 | |
| | 12.75 | | | | 49,381 | | | | 1.79 | | | | 1.71 | | | | 2.82 | | | | 217 | |
| | (5.28 | ) | | | 21,508 | | | | 1.73 | | | | 1.70 | | | | 3.23 | | | | 146 | |
| | 3.98 | | | | 16,075 | | | | 1.68 | | | | 1.67 | | | | 3.18 | | | | 173 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 2.28 | | | | 19,962 | | | | 1.00 | | | | .87 | | | | 1.52 | | | | 143 | |
| | .13 | | | | 21,347 | | | | 1.01 | | | | .88 | | | | 1.76 | | | | 339 | |
| | 6.27 | | | | 26,856 | | | | 1.02 | | | | .94 | | | | 2.25 | | | | 195 | |
| | 13.59 | | | | 17,874 | | | | 1.04 | | | | .96 | | | | 3.67 | | | | 217 | |
| | (4.59 | ) | | | 14,144 | | | | .98 | | | | .95 | | | | 3.96 | | | | 146 | |
| | 4.72 | | | | 17,092 | | | | .93 | | | | .92 | | | | 3.95 | | | | 173 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 2.39 | | | | 642,352 | | | | .75 | | | | .62 | | | | 1.80 | | | | 143 | |
| | .37 | | | | 631,819 | | | | .76 | | | | .63 | | | | 2.00 | | | | 339 | |
| | 6.54 | | | | 545,704 | | | | .77 | | | | .69 | | | | 2.48 | | | | 195 | |
| | 13.84 | | | | 354,384 | | | | .79 | | | | .71 | | | | 3.89 | | | | 217 | |
| | (4.30 | ) | | | 233,223 | | | | .72 | | | | .70 | | | | 4.20 | | | | 146 | |
| | 4.99 | | | | 435,704 | | | | .68 | | | | .67 | | | | 4.20 | | | | 173 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 2.48 | | | | 286,303 | | | | .57 | | | | .52 | | | | 1.91 | | | | 143 | |
| | .46 | | | | 298,724 | | | | .59 | | | | .53 | | | | 2.10 | | | | 339 | |
| | 6.58 | | | | 224,969 | | | | .59 | | | | .59 | | | | 2.60 | | | | 195 | |
| | 14.00 | | | | 154,593 | | | | .62 | | | | .62 | | | | 4.01 | | | | 217 | |
| | (3.88 | ) | | | 111,198 | | | | .73 | | | | .65 | | | | 4.28 | | | | 146 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Short Duration Bond Fund | | 347 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,039.27 | | | $ | 1,020.74 | |
Expenses Paid During Period* | | $ | 4.21 | | | $ | 4.17 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,035.75 | | | $ | 1,017.21 | |
Expenses Paid During Period* | | $ | 7.79 | | | $ | 7.72 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,039.41 | | | $ | 1,020.93 | |
Expenses Paid During Period* | | $ | 4.01 | | | $ | 3.97 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.79% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account | | | | | | | | |
Value November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,040.73 | | | $ | 1,022.18 | |
Expenses Paid During Period* | | $ | 2.74 | | | $ | 2.72 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 348 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
| Municipal Bonds - 91.9% | | | | | | | | | | | | | | | | |
| Alabama - 1.5% | | | | | | | | | | | | | | | | |
Alabama 21st Century Authority Revenue Bonds | | | 1,120 | | | | 5.000 | | | | 06/01/18 | | | | 1,311 | |
Alabama 21st Century Authority Revenue Bonds | | | 545 | | | | 5.000 | | | | 06/01/20 | | | | 640 | |
Alabama Public School & College Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 05/01/14 | | | | 1,076 | |
Alabama Public School & College Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 05/01/15 | | | | 1,124 | |
Auburn University Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 06/01/23 | | | | 2,457 | |
Birmingham Water Works Board Revenue Bonds (µ) | | | 1,275 | | | | 5.000 | | | | 01/01/17 | | | | 1,466 | |
Courtland Industrial Development Board Revenue Bonds | | | 250 | | | | 5.000 | | | | 11/01/13 | | | | 264 | |
Mobile Industrial Development Board Revenue Bonds (Ê) | | | 1,400 | | | | 4.875 | | | | 06/01/34 | | | | 1,451 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 9,789 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Alaska - 0.3% | | | | | | | | | | | | | | | | |
City of Valdez Alaska Revenue Bonds | | | 1,470 | | | | 5.000 | | | | 01/01/21 | | | | 1,712 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Arizona - 3.2% | | | | | | | | | | | | | | | | |
Apache County Industrial Development Authority Revenue Bonds | | | 955 | | | | 4.500 | | | | 03/01/30 | | | | 961 | |
Arizona Health Facilities Authority Revenue Bonds | | | 2,000 | | | | 5.250 | | | | 01/01/18 | | | | 2,371 | |
Arizona Health Facilities Authority Revenue Bonds | | | 2,000 | | | | 5.250 | | | | 01/01/22 | | | | 2,263 | |
Arizona School Facilities Board Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 07/01/16 | | | | 1,698 | |
Arizona Transportation Board Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 07/01/14 | | | | 1,644 | |
Arizona Water Infrastructure Finance Authority Revenue Bonds | | | 1,455 | | | | 5.000 | | | | 10/01/18 | | | | 1,790 | |
Arizona Water Infrastructure Finance Authority Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 10/01/20 | | | | 1,881 | |
City of Mesa Arizona Revenue Bonds (µ) | | | 1,000 | | | | 5.250 | | | | 07/01/14 | | | | 1,097 | |
City of Phoenix Arizona General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 07/01/15 | | | | 2,270 | |
Maricopa County Pollution Control Corp. Revenue Bonds (Ê) | | | 2,310 | | | | 5.200 | | | | 06/01/43 | | | | 2,601 | |
Salt River Project Agricultural Improvement & Power District Revenue Bonds | | | 1,635 | | | | 5.000 | | | | 01/01/25 | | | | 1,895 | |
Salt Verde Financial Corp. Revenue Bonds | | | 1,045 | | | | 5.250 | | | | 12/01/24 | | | | 1,138 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 21,609 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Arkansas - 0.3% | | | | | | | | | | | | | | | | |
State of Arkansas General Obligation Unlimited | | | 1,750 | | | | 5.000 | | | | 08/01/13 | | | | 1,851 | |
| | | | | | | | | | | | | | | | |
| | | | |
| California - 9.5% | | | | | | | | | | | | | | | | |
Abag Finance Authority for Nonprofit Corps. Certificate Of Participation | | | 380 | | | | 5.700 | | | | 08/15/14 | | | | 382 | |
California Health Facilities Financing Authority Revenue Bonds | | | 1,550 | | | | 5.000 | | | | 07/01/16 | | | | 1,772 | |
California State Department of Water Resources Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 05/01/14 | | | | 1,090 | |
California State Department of Water Resources Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 05/01/16 | | | | 1,164 | |
California State Department of Water Resources Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 05/01/17 | | | | 1,194 | |
California State Department of Water Resources Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 05/01/19 | | | | 3,077 | |
California State Department of Water Resources Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 12/01/20 | | | | 3,206 | |
California State Department of Water Resources Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 12/01/21 | | | | 1,196 | |
California State Public Works Board Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 12/01/16 | | | | 1,140 | |
California Statewide Communities Development Authority Revenue Bonds | | | 2,250 | | | | 5.000 | | | | 06/15/13 | | | | 2,363 | |
California Statewide Communities Development Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 04/01/14 | | | | 1,077 | |
California Statewide Communities Development Authority Revenue Bonds | | | 2,260 | | | | 5.000 | | | | 04/01/19 | | | | 2,659 | |
California Statewide Communities Development Authority Revenue Bonds | | | 1,405 | | | | 6.000 | | | | 05/15/23 | | | | 1,584 | |
California Statewide Communities Development Authority Revenue Bonds | | | 1,220 | | | | 5.250 | | | | 12/01/27 | | | | 1,245 | |
California Statewide Communities Development Authority Revenue Bonds (µ)(Ê) | | | 610 | | | | 4.100 | | | | 04/01/28 | | | | 629 | |
County of Los Angeles California Certificate Of Participation | | | 200 | | | | 5.000 | | | | 09/01/20 | | | | 237 | |
County of Los Angeles California Certificate Of Participation | | | 500 | | | | 5.000 | | | | 03/01/21 | | | | 589 | |
County of Los Angeles California Certificate Of Participation | | | 125 | | | | 5.000 | | | | 09/01/21 | | | | 147 | |
County of Los Angeles California Certificate Of Participation | | | 430 | | | | 5.000 | | | | 09/01/22 | | | | 506 | |
County of Sacramento California Airport System Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 07/01/22 | | | | 2,241 | |
County of Sacramento California Airport System Revenue Bonds | | | 895 | | | | 5.500 | | | | 07/01/28 | | | | 1,003 | |
County of Sacramento California Airport System Revenue Bonds | | | 750 | | | | 5.625 | | | | 07/01/29 | | | | 843 | |
Golden State Tobacco Securitization Corp. Revenue Bonds (µ) | | | 500 | | | | 5.000 | | | | 06/01/20 | | | | 501 | |
| | |
| Russell Tax Exempt Bond Fund | | 349 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
Golden State Tobacco Securitization Corp. Revenue Bonds (µ) | | | 750 | | | | 4.600 | | | | 06/01/23 | | | | 780 | |
Kings River Conservation District Certificate Of Participation | | | 850 | | | | 5.000 | | | | 05/01/15 | | | | 944 | |
Los Angeles Harbor Department Revenue Bonds | | | 2,000 | | | | 5.250 | | | | 08/01/22 | | | | 2,417 | |
Los Angeles Unified School District General Obligation Unlimited (µ)(æ) | | | 1,150 | | | | 5.000 | | | | 07/01/13 | | | | 1,213 | |
Modesto Irrigation District Revenue Bonds | | | 1,425 | | | | 5.000 | | | | 07/01/17 | | | | 1,669 | |
Northern California Power Agency Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 06/01/15 | | | | 1,104 | |
San Diego Public Facilities Financing Authority Sewer Revenue Bonds | | | 240 | | | | 5.000 | | | | 05/15/21 | | | | 286 | |
San Francisco City & County Public Utilities Commission Water Revenue Bonds | | | 2,685 | | | | 5.000 | | | | 11/01/27 | | | | 3,182 | |
Southern California Public Power Authority Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 07/01/18 | | | | 1,820 | |
Southern California Public Power Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/23 | | | | 1,193 | |
State of California General Obligation Unlimited (µ) | | | 1,000 | | | | 6.000 | | | | 02/01/17 | | | | 1,207 | |
State of California General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 10/01/17 | | | | 1,179 | |
State of California General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 02/01/20 | | | | 2,383 | |
State of California General Obligation Unlimited | | | 1,250 | | | | 5.000 | | | | 07/01/20 | | | | 1,517 | |
State of California General Obligation Unlimited | | | 2,500 | | | | 5.500 | | | | 04/01/21 | | | | 2,966 | |
State of California General Obligation Unlimited | | | 1,000 | | | | 5.250 | | | | 07/01/21 | | | | 1,214 | |
State of California General Obligation Unlimited | | | 1,000 | | | | 5.250 | | | | 03/01/22 | | | | 1,192 | |
State of California General Obligation Unlimited (µ)(Ê) | | | 1,200 | | | | 0.230 | | | | 07/01/23 | | | | 1,200 | |
State of California General Obligation Unlimited | | | 2,500 | | | | 5.250 | | | | 09/01/28 | | | | 2,841 | |
State of California General Obligation Unlimited | | | 1,400 | | | | 5.000 | | | | 02/01/31 | | | | 1,540 | |
Tuolumne Wind Project Authority Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 01/01/18 | | | | 1,755 | |
University of California Revenue Bonds | | | 500 | | | | 4.000 | | | | 05/15/14 | | | | 536 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 63,983 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Colorado - 1.0% | | | | | | | | | | | | | | | | |
City of Colorado Springs Colorado Utilities System Revenue Bonds | | | 4,000 | | | | 5.000 | | | | 11/15/18 | | | | 4,885 | |
Colorado Health Facilities Authority Revenue Bonds | | | 1,000 | | | | 5.250 | | | | 06/01/23 | | | | 1,068 | |
Colorado Housing & Finance Authority Revenue Bonds | | | 5 | | | | 6.300 | | | | 08/01/12 | | | | 5 | |
Colorado Housing & Finance Authority Revenue Bonds | | | 20 | | | | 6.300 | | | | 08/01/16 | | | | 20 | |
Colorado Housing & Finance Authority Revenue Bonds | | | 5 | | | | 6.700 | | | | 10/01/16 | | | | 5 | |
E-470 Public Highway Authority Revenue Bonds (µ) | | | 850 | | | | 5.000 | | | | 09/01/17 | | | | 905 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 6,888 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Connecticut - 0.9% | | | | | | | | | | | | | | | | |
Connecticut State Health & Educational Facility Authority Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 07/01/25 | | | | 2,929 | |
State of Connecticut General Obligation Unlimited | | | 2,490 | | | | 5.000 | | | | 01/01/16 | | | | 2,868 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 5,797 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Delaware - 0.6% | | | | | | | | | | | | | | | | |
Delaware Transportation Authority Revenue Bonds (µ)(æ) | | | 1,305 | | | | 5.000 | | | | 07/01/15 | | | | 1,489 | |
Delaware Transportation Authority Revenue Bonds | | | 1,330 | | | | 5.000 | | | | 07/01/16 | | | | 1,556 | |
Delaware Transportation Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/17 | | | | 1,200 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 4,245 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Florida - 6.1% | | | | | | | | | | | | | | | | |
Citizens Property Insurance Corp. Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 03/01/15 | | | | 1,085 | |
Citizens Property Insurance Corp. Revenue Bonds | | | 2,600 | | | | 5.000 | | | | 06/01/15 | | | | 2,838 | |
Citizens Property Insurance Corp. Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 06/01/18 | | | | 2,829 | |
City of Gulf Breeze Florida Revenue Bonds (µ) | | | 1,825 | | | | 5.000 | | | | 12/01/15 | | | | 1,853 | |
City of Lakeland Florida Energy System Revenue Bonds (µ) | | | 2,000 | | | | 5.000 | | | | 10/01/17 | | | | 2,330 | |
City of Pembroke Pines Florida Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 10/01/16 | | | | 1,117 | |
City of Tampa Florida Revenue Bonds | | | 500 | | | | 5.000 | | | | 11/15/15 | | | | 566 | |
County of Hillsborough Florida Revenue Bonds (µ) | | | 1,000 | | | | 5.500 | | | | 08/01/12 | | | | 1,013 | |
County of Miami-Dade Florida Water & Sewer System Revenue Bonds (µ) | | | 1,500 | | | | 5.250 | | | | 10/01/19 | | | | 1,819 | |
Escambia County Health Facilities Authority Revenue Bonds | | | 1,000 | | | | 5.250 | | | | 11/15/13 | | | | 1,073 | |
Florida Department of Children & Family Services Certificate Of Participation (µ) | | | 1,175 | | | | 5.000 | | | | 10/01/15 | | | | 1,333 | |
| | | | |
| | 350 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
Florida Hurricane Catastrophe Fund Finance Corp. Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/15 | | | | 1,108 | |
Florida State Department of Transportation Revenue Bonds (µ) | | | 2,000 | | | | 5.000 | | | | 07/01/13 | | | | 2,107 | |
Hillsborough County Aviation Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 10/01/14 | | | | 1,089 | |
JEA Electric System Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 10/01/17 | | | | 1,185 | |
Kissimmee Utility Authority Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 10/01/17 | | | | 1,169 | |
Miami-Dade County Educational Facilities Authority Revenue Bonds (µ)(æ) | | | 1,750 | | | | 5.000 | | | | 04/01/14 | | | | 1,904 | |
Orlando Utilities Commission Revenue Bonds | | | 3,000 | | | | 5.000 | | | | 10/01/19 | | | | 3,683 | |
Palm Beach County School District Certificate Of Participation (µ) | | | 1,000 | | | | 5.000 | | | | 08/01/14 | | | | 1,082 | |
South Miami Health Facilities Authority Revenue Bonds | | | 750 | | | | 5.000 | | | | 08/15/18 | | | | 871 | |
State of Florida General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 06/01/16 | | | | 1,168 | |
State of Florida General Obligation Unlimited | | | 3,515 | | | | 5.000 | | | | 06/01/17 | | | | 3,995 | |
State of Florida Revenue Bonds (µ) | | | 1,000 | | | | 5.250 | | | | 01/01/13 | | | | 1,032 | |
State of Florida Revenue Bonds | | | 1,300 | | | | 5.000 | | | | 07/01/16 | | | | 1,504 | |
Tampa-Hillsborough County Expressway Authority Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 07/01/14 | | | | 1,093 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 40,846 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Georgia - 4.2% | | | | | | | | | | | | | | | | |
Atlanta Independent School System Certificate Of Participation | | | 2,000 | | | | 5.000 | | | | 03/01/17 | | | | 2,326 | |
City of Atlanta Georgia Airport Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 01/01/16 | | | | 2,287 | |
City of Atlanta Georgia Airport Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 01/01/20 | | | | 2,993 | |
City of Atlanta Georgia Water & Wastewater Revenue Bonds | | | 1,000 | | | | 6.000 | | | | 11/01/20 | | | | 1,255 | |
City of Atlanta Georgia Water & Wastewater Revenue Bonds (µ) | | | 2,000 | | | | 5.500 | | | | 11/01/23 | | | | 2,332 | |
City of Atlanta Georgia Water & Wastewater Revenue Bonds | | | 1,300 | | | | 6.000 | | | | 11/01/25 | | | | 1,549 | |
Georgia State Road & Tollway Authority Revenue Bonds | | | 1,150 | | | | 5.000 | | | | 03/01/19 | | | | 1,425 | |
Hall County School District General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 11/01/12 | | | | 1,024 | |
Marietta Development Authority Revenue Bonds | | | 515 | | | | 6.250 | | | | 06/15/20 | | | | 529 | |
Municipal Electric Authority of Georgia Revenue Bonds (µ) | | | 850 | | | | 6.250 | | | | 01/01/17 | | | | 1,017 | |
Private Colleges & Universities Authority Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 09/01/16 | | | | 1,755 | |
Private Colleges & Universities Authority Revenue Bonds | | | 645 | | | | 5.250 | | | | 10/01/27 | | | | 687 | |
State of Georgia General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 07/01/12 | | | | 2,016 | |
State of Georgia General Obligation Unlimited | | | 2,100 | | | | 5.500 | | | | 07/01/13 | | | | 2,228 | |
State of Georgia General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 11/01/16 | | | | 1,188 | |
State of Georgia General Obligation Unlimited | | | 1,240 | | | | 5.000 | | | | 07/01/17 | | | | 1,499 | |
State of Georgia General Obligation Unlimited | | | 1,500 | | | | 5.000 | | | | 07/01/22 | | | | 1,801 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 27,911 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Guam - 0.1% | | | | | | | | | | | | | | | | |
Territory of Guam Revenue Bonds | | | 500 | | | | 5.375 | | | | 12/01/24 | | | | 527 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Hawaii - 0.5% | | | | | | | | | | | | | | | | |
City & County Honolulu Hawaii Wastewater System Revenue Bonds (µ) | | | 1,500 | | | | 5.000 | | | | 07/01/19 | | | | 1,783 | |
Hawaii Housing & Community Development Corp. Revenue Bonds | | | 150 | | | | 3.700 | | | | 01/01/22 | | | | 154 | |
State of Hawaii General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 02/01/15 | | | | 1,120 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 3,057 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Idaho - 0.6% | | | | | | | | | | | | | | | | |
Boise State University Revenue Bonds | | | 1,100 | | | | 5.000 | | | | 04/01/17 | | | | 1,297 | |
Idaho Housing & Finance Association Revenue Bonds (µ) | | | 1,330 | | | | 5.250 | | | | 07/15/21 | | | | 1,579 | |
Idaho State Building Authority Revenue Bonds | | | 940 | | | | 5.000 | | | | 09/01/23 | | | | 1,128 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 4,004 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Illinois - 3.8% | | | | | | | | | | | | | | | | |
City of Chicago Illinois General Obligation Unlimited (µ)(æ) | | | 1,000 | | | | 5.000 | | | | 01/01/14 | | | | 1,077 | |
City of Chicago Illinois General Obligation Unlimited (µ) | | | 2,500 | | | | 5.000 | | | | 01/01/17 | | | | 2,749 | |
City of Chicago Illinois General Obligation Unlimited (µ) | | | 2,135 | | | | 5.000 | | | | 12/01/23 | | | | 2,342 | |
City of Chicago Illinois O’Hare International Airport Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 01/01/19 | | | | 1,103 | |
| | |
| Russell Tax Exempt Bond Fund | | 351 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
City of Chicago Illinois O’Hare International Airport Revenue Bonds (µ) | | | 1,320 | | | | 5.000 | | | | 01/01/20 | | | | 1,506 | |
Cook County Community Consolidated School District No. 15 Palatine General Obligation Limited (µ) | | | 2,235 | | | | Zero coupon | | | | 12/01/13 | | | | 2,163 | |
Illinois Finance Authority Revenue Bonds | | | 670 | | | | 5.500 | | | | 10/01/12 | | | | 682 | |
Illinois Finance Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 03/01/15 | | | | 1,108 | |
Lake County Community Unit School District No. 116 Round Lake General Obligation Unlimited (µ) | | | 400 | | | | 7.600 | | | | 02/01/14 | | | | 451 | |
Railsplitter Tobacco Settlement Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 06/01/18 | | | | 1,133 | |
Railsplitter Tobacco Settlement Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 06/01/19 | | | | 1,133 | |
Railsplitter Tobacco Settlement Authority Revenue Bonds | | | 1,925 | | | | 5.250 | | | | 06/01/20 | | | | 2,195 | |
Railsplitter Tobacco Settlement Authority Revenue Bonds | | | 1,000 | | | | 5.500 | | | | 06/01/23 | | | | 1,139 | |
Railsplitter Tobacco Settlement Authority Revenue Bonds | | | 2,500 | | | | 6.250 | | | | 06/01/24 | | | | 2,785 | |
State of Illinois Revenue Bonds | | | 1,250 | | | | 5.000 | | | | 06/15/14 | | | | 1,363 | |
State of Illinois Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 06/15/16 | | | | 1,148 | |
University of Illinois Revenue Bonds | | | 1,115 | | | | 5.000 | | | | 04/01/20 | | | | 1,333 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 25,410 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Indiana - 1.4% | | | | | | | | | | | | | | | | |
Ball State University Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 07/01/16 | | | | 1,149 | |
City of Indianapolis Indiana Gas Utility Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 08/15/23 | | | | 1,157 | |
City of Whiting Indiana Revenue Bonds | | | 375 | | | | 5.000 | | | | 01/01/16 | | | | 420 | |
Indiana Bond Bank Revenue Bonds (µ) | | | 45 | | | | 5.750 | | | | 08/01/13 | | | | 46 | |
Indiana Finance Authority Revenue Bonds | | | 1,000 | | | | 4.900 | | | | 01/01/16 | | | | 1,102 | |
Indiana Finance Authority Revenue Bonds | | | 1,500 | | | | 5.250 | | | | 02/01/18 | | | | 1,837 | |
Indiana Finance Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 02/01/19 | | | | 1,230 | |
Indianapolis Local Public Improvement Bond Bank Revenue Bonds | | | 1,150 | | | | 5.000 | | | | 06/01/16 | | | | 1,302 | |
Indianapolis Local Public Improvement Bond Bank Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 02/01/18 | | | | 1,207 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 9,450 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Iowa - 0.5% | | | | | | | | | | | | | | | | |
Iowa Finance Authority Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 07/01/14 | | | | 1,077 | |
Iowa Higher Education Loan Authority Revenue Bonds | | | 1,625 | | | | 5.000 | | | | 12/01/18 | | | | 2,007 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 3,084 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Kansas - 0.2% | | | | | | | | | | | | | | | | |
Wyandotte County-Kansas City Unified Government Revenue Bonds | | | 2,070 | | | | Zero coupon | | | | 06/01/21 | | | | 1,398 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Louisiana - 0.8% | | | | | | | | | | | | | | | | |
Louisiana Public Facilities Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/19 | | | | 1,151 | |
Louisiana State Citizens Property Insurance Corp. Revenue Bonds (µ) | | | 2,460 | | | | 6.750 | | | | 06/01/26 | | | | 2,918 | |
Louisiana State University & Agricultural & Mechanical College Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/16 | | | | 1,160 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 5,229 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Maryland - 2.6% | | | | | | | | | | | | | | | | |
County of Montgomery Maryland General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 07/01/17 | | | | 2,414 | |
County of Montgomery Maryland General Obligation Unlimited | | | 1,350 | | | | 5.000 | | | | 07/01/19 | | | | 1,691 | |
County of Prince George’s Maryland General Obligation Limited | | | 1,000 | | | | 5.000 | | | | 07/15/16 | | | | 1,179 | |
Maryland Economic Development Corp. Revenue Bonds | | | 1,250 | | | | 5.125 | | | | 06/01/20 | | | | 1,344 | |
Maryland Economic Development Corp. Revenue Bonds | | | 885 | | | | 6.200 | | | | 09/01/22 | | | | 1,082 | |
Maryland Economic Development Corp. Revenue Bonds | | | 1,120 | | | | 5.375 | | | | 06/01/25 | | | | 1,202 | |
Maryland Economic Development Corp. Revenue Bonds | | | 1,350 | | | | 5.750 | | | | 09/01/25 | | | | 1,430 | |
Maryland Health & Higher Educational Facilities Authority Revenue Bonds (Ê) | | | 465 | | | | 5.000 | | | | 05/15/48 | | | | 525 | |
Maryland State Department of Transportation Revenue Bonds (æ) | | | 1,100 | | | | 5.000 | | | | 05/01/14 | | | | 1,203 | |
Maryland State Transportation Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 03/01/16 | | | | 1,161 | |
State of Maryland General Obligation Unlimited | | | 2,500 | | | | 5.250 | | | | 03/01/13 | | | | 2,605 | |
State of Maryland General Obligation Unlimited | | | 1,500 | | | | 5.000 | | | | 08/01/14 | | | | 1,655 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 17,491 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 352 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
| Massachusetts - 1.4% | | | | | | | | | | | | | | | | |
Commonwealth of Massachusetts General Obligation Limited | | | 930 | | | | 5.500 | | | | 11/01/15 | | | | 1,087 | |
Commonwealth of Massachusetts General Obligation Limited | | | 1,000 | | | | 5.500 | | | | 10/01/16 | | | | 1,202 | |
Commonwealth of Massachusetts General Obligation Unlimited | | | 1,500 | | | | 5.250 | | | | 08/01/13 | | | | 1,593 | |
Massachusetts Department of Transportation Revenue Bonds | | | 1,380 | | | | 5.000 | | | | 01/01/15 | | | | 1,517 | |
Massachusetts School Building Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 10/15/22 | | | | 1,247 | |
Massachusetts State Water Pollution Abatement Revenue Bonds | | | 1,090 | | | | 5.000 | | | | 08/01/16 | | | | 1,284 | |
Massachusetts Water Resources Authority Revenue Bonds | | | 1,525 | | | | 5.000 | | | | 08/01/14 | | | | 1,681 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 9,611 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Michigan - 1.7% | | | | | | | | | | | | | | | | |
City of Detroit Michigan Sewage Disposal System Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 07/01/14 | | | | 1,050 | |
City of Detroit Michigan Water Supply System Revenue Bonds (µ) | | | 1,015 | | | | 5.000 | | | | 07/01/18 | | | | 1,099 | |
Detroit City School District General Obligation Unlimited (µ) | | | 1,000 | | | | 6.000 | | | | 05/01/19 | | | | 1,229 | |
Kent Hospital Finance Authority Revenue Bonds | | | 1,505 | | | | 5.000 | | | | 11/15/19 | | | | 1,761 | |
Kent Hospital Finance Authority Revenue Bonds (Ê) | | | 500 | | | | 5.250 | | | | 01/15/47 | | | | 531 | |
Michigan State Hospital Finance Authority Revenue Bonds | | | 1,000 | | | | 5.500 | | | | 11/01/14 | | | | 1,064 | |
Michigan Strategic Fund Revenue Bonds | | | 2,000 | | | | 6.250 | | | | 06/01/14 | | | | 2,205 | |
Wayne County Airport Authority Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 12/01/17 | | | | 2,273 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 11,212 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Minnesota - 2.7% | | | | | | | | | | | | | | | | |
City of Minneapolis Minnesota Revenue Bonds | | | 1,250 | | | | 5.000 | | | | 08/01/17 | | | | 1,372 | |
City of Minneapolis Minnesota Revenue Bonds | | | 1,855 | | | | 6.375 | | | | 11/15/23 | | | | 2,253 | |
City of Rochester Minnesota Revenue Bonds (Ê) | | | 1,125 | | | | 4.000 | | | | 11/15/30 | | | | 1,288 | |
City of Saint Louis Park Minnesota Revenue Bonds | | | 1,165 | | | | 5.500 | | | | 07/01/17 | | | | 1,363 | |
City of Saint Louis Park Minnesota Revenue Bonds | | | 725 | | | | 5.500 | | | | 07/01/18 | | | | 858 | |
Minnesota Municipal Power Agency Revenue Bonds | | | 2,220 | | | | 5.250 | | | | 10/01/21 | | | | 2,419 | |
State of Minnesota General Obligation Unlimited | | | 545 | | | | 5.000 | | | | 06/01/14 | | | | 597 | |
State of Minnesota General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 08/01/15 | | | | 1,143 | |
State of Minnesota General Obligation Unlimited | | | 2,990 | | | | 5.000 | | | | 06/01/17 | | | | 3,600 | |
Tobacco Securitization Authority Minnesota Revenue Bonds | | | 1,175 | | | | 5.000 | | | | 03/01/21 | | | | 1,336 | |
Tobacco Securitization Authority Minnesota Revenue Bonds | | | 1,010 | | | | 5.000 | | | | 03/01/22 | | | | 1,151 | |
Tobacco Securitization Authority Minnesota Revenue Bonds | | | 780 | | | | 5.250 | | | | 03/01/31 | | | | 856 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 18,236 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Mississippi - 0.4% | | | | | | | | | | | | | | | | |
Mississippi Development Bank Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 07/01/15 | | | | 1,100 | |
Mississippi Hospital Equipment & Facilities Authority Revenue Bonds | | | 1,555 | | | | 5.000 | | | | 10/01/17 | | | | 1,813 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 2,913 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Missouri - 0.7% | | | | | | | | | | | | | | | | |
City of Saint Louis Missouri Airport Revenue Bonds | | | 1,680 | | | | 6.125 | | | | 07/01/24 | | | | 1,920 | |
Missouri Highway & Transportation Commission Revenue Bonds | | | 2,500 | | | | 5.250 | | | | 05/01/23 | | | | 2,960 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 4,880 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Nebraska - 0.5% | | | | | | | | | | | | | | | | |
Central Plains Energy Project Revenue Bonds | | | 1,000 | | | | 5.250 | | | | 09/01/37 | | | | 1,038 | |
Nebraska Public Power District Revenue Bonds | | | 2,000 | | | | 4.000 | | | | 01/01/21 | | | | 2,267 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 3,305 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Nevada - 0.8% | | | | | | | | | | | | | | | | |
County of Clark Nevada Airport System Revenue Bonds (µ) | | | 2,500 | | | | 5.000 | | | | 07/01/22 | | | | 2,883 | |
County of Clark Nevada General Obligation Limited (µ) | | | 1,000 | | | | 5.000 | | | | 11/01/13 | | | | 1,070 | |
County of Clark Nevada Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/16 | | | | 1,128 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 5,081 | |
| | | | | | | | | | | | | | | | |
| | |
| Russell Tax Exempt Bond Fund | | 353 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
| New Jersey - 4.0% | | | | | | | | | | | | | | | | |
New Jersey Economic Development Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 09/01/12 | | | | 1,016 | |
New Jersey Economic Development Authority Revenue Bonds | | | 1,020 | | | | 5.375 | | | | 06/15/15 | | | | 1,170 | |
New Jersey Economic Development Authority Revenue Bonds (µ) | | | 1,500 | | | | 5.500 | | | | 06/15/16 | | | | 1,788 | |
New Jersey Economic Development Authority Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 09/01/18 | | | | 2,994 | |
New Jersey Economic Development Authority Revenue Bonds | | | 2,765 | | | | 5.000 | | | | 06/15/20 | | | | 3,165 | |
New Jersey Economic Development Authority Revenue Bonds | | | 75 | | | | 5.000 | | | | 06/15/21 | | | | 86 | |
New Jersey Educational Facilities Authority Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 07/01/16 | | | | 2,364 | |
New Jersey Health Care Facilities Financing Authority Revenue Bonds | | | 980 | | | | 5.000 | | | | 07/01/13 | | | | 1,014 | |
New Jersey Health Care Facilities Financing Authority Revenue Bonds (µ) | | | 1,000 | | | | 5.000 | | | | 09/15/17 | | | | 1,147 | |
New Jersey Transportation Trust Fund Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 12/15/16 | | | | 1,161 | |
New Jersey Transportation Trust Fund Authority Revenue Bonds (µ) | | | 1,500 | | | | 5.000 | | | | 06/15/18 | | | | 1,654 | |
New Jersey Transportation Trust Fund Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 12/15/18 | | | | 1,204 | |
New Jersey Transportation Trust Fund Authority Revenue Bonds | | | 3,750 | | | | 5.500 | | | | 06/15/31 | | | | 4,325 | |
State of New Jersey General Obligation Unlimited (µ) | | | 2,080 | | | | 5.500 | | | | 07/15/18 | | | | 2,586 | |
Tobacco Settlement Financing Corp. Revenue Bonds | | | 1,400 | | | | 4.500 | | | | 06/01/23 | | | | 1,327 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 27,001 | |
| | | | | | | | | | | | | | | | |
| | | | |
| New Mexico - 0.6% | | | | | | | | | | | | | | | | |
State of New Mexico Revenue Bonds | | | 3,500 | | | | 5.000 | | | | 07/01/15 | | | | 3,982 | |
| | | | | | | | | | | | | | | | |
| | | | |
| New York - 10.3% | | | | | | | | | | | | | | | | |
Battery Park City Authority Revenue Bonds | | | 1,500 | | | | 5.250 | | | | 11/01/22 | | | | 1,610 | |
Brooklyn Arena Local Development Corp. Revenue Bonds | | | 2,250 | | | | 6.500 | | | | 07/15/30 | | | | 2,559 | |
Buffalo & Erie County Industrial Land Development Corp. Revenue Bonds | | | 1,350 | | | | 5.750 | | | | 10/01/26 | | | | 1,578 | |
City of New York New York General Obligation Unlimited | | | 750 | | | | 5.000 | | | | 11/01/12 | | | | 768 | |
City of New York New York General Obligation Unlimited | | | 1,500 | | | | 5.000 | | | | 08/01/15 | | | | 1,704 | |
City of New York New York General Obligation Unlimited | | | 2,170 | | | | 5.000 | | | | 08/01/16 | | | | 2,535 | |
City of New York New York General Obligation Unlimited | | | 1,500 | | | | 5.000 | | | | 08/01/19 | | | | 1,835 | |
Hempstead Town Local Development Corp. Revenue Bonds | | | 1,600 | | | | 5.750 | | | | 07/01/23 | | | | 1,827 | |
Metropolitan Transportation Authority Revenue Bonds | | | 1,430 | | | | 6.500 | | | | 11/15/28 | | | | 1,811 | |
New York City Health & Hospital Corp. Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 02/15/17 | | | | 1,748 | |
New York City Municipal Water Finance Authority Revenue Bonds (µ) | | | 865 | | | | 5.000 | | | | 06/15/21 | | | | 967 | |
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds | | | 890 | | | | 5.000 | | | | 11/01/20 | | | | 1,106 | |
New York City Trust for Cultural Resources Revenue Bonds | | | 940 | | | | 5.000 | | | | 07/01/21 | | | | 1,105 | |
New York State Dormitory Authority Revenue Bonds | | | 3,415 | | | | 5.000 | | | | 07/01/16 | | | | 3,822 | |
New York State Dormitory Authority Revenue Bonds | | | 1,755 | | | | 5.000 | | | | 07/01/17 | | | | 2,075 | |
New York State Dormitory Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 10/01/19 | | | | 1,248 | |
New York State Dormitory Authority Revenue Bonds | | | 1,000 | | | | 5.250 | | | | 02/15/21 | | | | 1,229 | |
New York State Dormitory Authority Revenue Bonds | | | 180 | | | | 5.000 | | | | 07/01/21 | | | | 220 | |
New York State Dormitory Authority Revenue Bonds | | | 1,000 | | | | 6.500 | | | | 12/01/21 | | | | 1,118 | |
New York State Dormitory Authority Revenue Bonds | | | 2,400 | | | | 5.000 | | | | 05/01/22 | | | | 2,813 | |
New York State Dormitory Authority Revenue Bonds | | | 725 | | | | 5.000 | | | | 05/15/23 | | | | 887 | |
New York State Dormitory Authority Revenue Bonds | | | 835 | | | | 5.000 | | | | 07/01/24 | | | | 996 | |
New York State Dormitory Authority Revenue Bonds | | | 2,500 | | | | 5.250 | | | | 07/01/29 | | | | 2,888 | |
New York State Environmental Facilities Corp. Revenue Bonds | | | 770 | | | | 5.000 | | | | 06/15/22 | | | | 918 | |
New York State Environmental Facilities Corp. Revenue Bonds | | | 1,640 | | | | 5.000 | | | | 09/15/23 | | | | 1,914 | |
New York State Thruway Authority Revenue Bonds (µ) | | | 1,575 | | | | 5.250 | | | | 04/01/13 | | | | 1,647 | |
New York State Thruway Authority Revenue Bonds | | | 4,000 | | | | 5.000 | | | | 04/01/14 | | | | 4,346 | |
New York State Thruway Authority Revenue Bonds | | | 2,300 | | | | 5.000 | | | | 03/15/19 | | | | 2,813 | |
New York State Urban Development Corp. Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 03/15/17 | | | | 2,969 | |
Port Authority of New York & New Jersey Revenue Bonds | | | 2,500 | | | | 6.500 | | | | 12/01/28 | | | | 2,691 | |
Sales Tax Asset Receivable Corp. Revenue Bonds (µ) | | | 1,700 | | | | 5.000 | | | | 10/15/25 | | | | 1,864 | |
State of New York General Obligation Unlimited | | | 1,500 | | | | 5.000 | | | | 02/15/14 | | | | 1,623 | |
State of New York General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 12/15/21 | | | | 2,538 | |
Triborough Bridge & Tunnel Authority Revenue Bonds | | | 950 | | | | 5.000 | | | | 11/15/17 | | | | 1,143 | |
Triborough Bridge & Tunnel Authority Revenue Bonds (µ) | | | 1,000 | | | | 5.500 | | | | 11/15/20 | | | | 1,278 | |
| | | | |
| | 354 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
Triborough Bridge & Tunnel Authority Revenue Bonds (Ê) | | | 2,250 | | | | 5.000 | | | | 11/15/25 | | | | 2,411 | |
Triborough Bridge & Tunnel Authority Revenue Bonds (Ê) | | | 900 | | | | 5.000 | | | | 11/15/38 | | | | 1,014 | |
Troy Capital Resource Corp. Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 09/01/20 | | | | 1,185 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 68,803 | |
| | | | | | | | | | | | | | | | |
| | | | |
| North Carolina - 1.5% | | | | | | | | | | | | | | | | |
City of Charlotte North Carolina General Obligation Unlimited | | | 1,890 | | | | 5.000 | | | | 06/01/15 | | | | 2,150 | |
North Carolina Eastern Municipal Power Agency Revenue Bonds | | | 650 | | | | 5.000 | | | | 01/01/16 | | | | 733 | |
North Carolina Medical Care Commission Revenue Bonds | | | 410 | | | | 5.400 | | | | 10/01/27 | | | | 416 | |
North Carolina Municipal Power Agency No. 1 Revenue Bonds | | | 200 | | | | 5.500 | | | | 01/01/13 | | | | 207 | |
State of North Carolina General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 03/01/14 | | | | 1,040 | |
State of North Carolina General Obligation Unlimited | | | 2,500 | | | | 5.000 | | | | 05/01/20 | | | | 3,157 | |
State of North Carolina Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 05/01/19 | | | | 1,230 | |
University of North Carolina at Chapel Hill Revenue Bonds | | | 1,205 | | | | 5.000 | | | | 12/01/31 | | | | 1,346 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 10,279 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Ohio - 1.6% | | | | | | | | | | | | | | | | |
City of Cleveland Ohio Airport System Revenue Bonds | | | 585 | | | | 5.000 | | | | 01/01/28 | | | | 629 | |
County of Montgomery Ohio Revenue Bonds | | | 1,100 | | | | 5.750 | | | | 11/15/22 | | | | 1,333 | |
Kent State University Revenue Bonds (µ) | | | 2,000 | | | | 5.000 | | | | 05/01/16 | | | | 2,280 | |
Ohio Air Quality Development Authority Revenue Bonds | | | 1,110 | | | | 5.700 | | | | 02/01/14 | | | | 1,185 | |
Ohio Air Quality Development Authority Revenue Bonds | | | 1,050 | | | | 5.625 | | | | 06/01/18 | | | | 1,194 | |
Ohio Air Quality Development Authority Revenue Bonds | | | 1,725 | | | | 5.700 | | | | 08/01/20 | | | | 1,959 | |
University of Cincinnati Revenue Bonds | | | 1,965 | | | | 5.000 | | | | 06/01/21 | | | | 2,390 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 10,970 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Oklahoma - 0.2% | | | | | | | | | | | | | | | | |
Oklahoma Development Finance Authority Revenue Bonds | | | 275 | | | | 5.000 | | | | 10/01/13 | | | | 290 | |
Tulsa County Industrial Authority Revenue Bonds | | | 1,000 | | | | 4.000 | | | | 09/01/14 | | | | 1,076 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 1,366 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Oregon - 1.1% | | | | | | | | | | | | | | | | |
City of Portland Oregon Sewer System Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 06/15/18 | | | | 2,447 | |
Morrow County School District No. 1 General Obligation Unlimited (µ) | | | 1,955 | | | | 5.500 | | | | 06/15/21 | | | | 2,481 | |
Oregon Department of Transportation Revenue Bonds | | | 2,000 | | | | 5.250 | | | | 11/15/14 | | | | 2,240 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 7,168 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Pennsylvania - 5.1% | | | | | | | | | | | | | | | | |
Allegheny County Hospital Development Authority Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 09/01/16 | | | | 2,319 | |
Allegheny County Industrial Development Authority Revenue Bonds | | | 920 | | | | 6.500 | | | | 05/01/17 | | | | 988 | |
Berks County Municipal Authority Revenue Bonds | | | 1,960 | | | | 5.250 | | | | 11/01/24 | | | | 2,231 | |
Berks County Vocational Technical School Authority Revenue Bonds (µ) | | | 1,260 | | | | 5.000 | | | | 06/01/15 | | | | 1,375 | |
Butler County Hospital Authority Revenue Bonds | | | 1,000 | | | | 7.125 | | | | 07/01/29 | | | | 1,217 | |
Commonwealth of Pennsylvania General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 08/01/13 | | | | 2,116 | |
Commonwealth of Pennsylvania General Obligation Unlimited | | | 2,500 | | | | 5.500 | | | | 01/01/14 | | | | 2,713 | |
Commonwealth of Pennsylvania General Obligation Unlimited (µ) | | | 1,000 | | | | 5.000 | | | | 09/01/15 | | | | 1,104 | |
Commonwealth of Pennsylvania General Obligation Unlimited (µ) | | | 1,300 | | | | 5.375 | | | | 07/01/17 | | | | 1,585 | |
County of Allegheny Pennsylvania General Obligation Unlimited (µ) | | | 1,000 | | | | 5.000 | | | | 10/01/15 | | | | 1,122 | |
Delaware County Industrial Development Authority Revenue Bonds | | | 940 | | | | 5.250 | | | | 08/15/30 | | | | 768 | |
Montgomery County Industrial Development Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 11/15/17 | | | | 1,092 | |
Pennsylvania Economic Development Financing Authority Revenue Bonds | | | 1,200 | | | | 6.250 | | | | 10/15/23 | �� | | | 1,359 | |
Pennsylvania Economic Development Financing Authority Revenue Bonds (Ê) | | | 605 | | | | 5.000 | | | | 12/01/42 | | | | 607 | |
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 09/01/17 | | | | 1,203 | |
Pennsylvania Higher Educational Facilities Authority Revenue Bonds (µ) | | | 3,000 | | | | 5.000 | | | | 06/15/20 | | | | 3,283 | |
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | | | 1,125 | | | | 6.000 | | | | 07/01/21 | | | | 1,302 | |
Pennsylvania Higher Educational Facilities Authority Revenue Bonds | | | 1,940 | | | | 5.250 | | | | 05/01/24 | | | | 2,227 | |
| | |
| Russell Tax Exempt Bond Fund | | 355 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
Pennsylvania Intergovernmental Cooperation Authority Special Tax | | | 1,000 | | | | 5.000 | | | | 06/15/17 | | | | 1,192 | |
Pennsylvania Turnpike Commission Revenue Bonds (µ) | | | 1,450 | | | | 5.500 | | | | 12/01/13 | | | | 1,564 | |
Philadelphia School District General Obligation Unlimited | | | 1,480 | | | | 5.000 | | | | 06/01/12 | | | | 1,486 | |
University of Pittsburgh Revenue Bonds | | | 1,000 | | | | 5.500 | | | | 09/15/21 | | | | 1,245 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 34,098 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Puerto Rico - 3.8% | | | | | | | | | | | | | | | | |
Commonwealth of Puerto Rico General Obligation Unlimited (æ) | | | 1,780 | | | | 5.250 | | | | 07/01/13 | | | | 1,882 | |
Commonwealth of Puerto Rico General Obligation Unlimited | | | 750 | | | | 5.250 | | | | 07/01/15 | | | | 819 | |
Commonwealth of Puerto Rico General Obligation Unlimited (æ) | | | 620 | | | | 5.250 | | | | 07/01/16 | | | | 736 | |
Commonwealth of Puerto Rico General Obligation Unlimited | | | 1,500 | | | | 5.000 | | | | 07/01/21 | | | | 1,630 | |
Government Development Bank for Puerto Rico Revenue Bonds (µ) | | | 2,830 | | | | 4.750 | | | | 12/01/15 | | | | 2,903 | |
Puerto Rico Electric Power Authority Revenue Bonds (µ) | | | 1,005 | | | | 5.500 | | | | 07/01/16 | | | | 1,147 | |
Puerto Rico Electric Power Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/17 | | | | 1,119 | |
Puerto Rico Electric Power Authority Revenue Bonds (µ) | | | 500 | | | | 5.500 | | | | 07/01/17 | | | | 571 | |
Puerto Rico Highway & Transportation Authority Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 07/01/13 | | | | 2,088 | |
Puerto Rico Housing Finance Authority Revenue Bonds | | | 180 | | | | 5.500 | | | | 12/01/15 | | | | 202 | |
Puerto Rico Housing Finance Authority Revenue Bonds | | | 1,830 | | | | 5.500 | | | | 12/01/16 | | | | 2,062 | |
Puerto Rico Public Buildings Authority Revenue Bonds (æ) | | | 2,000 | | | | 5.500 | | | | 07/01/14 | | | | 2,212 | |
Puerto Rico Public Buildings Authority Revenue Bonds | | | 500 | | | | 5.750 | | | | 07/01/16 | | | | 561 | |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds (æ) | | | 30 | | | | 6.125 | | | | 02/01/14 | | | | 33 | |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | | | 650 | | | | 5.000 | | | | 08/01/22 | | | | 779 | |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | | | 2,500 | | | | 5.500 | | | | 08/01/22 | | | | 2,908 | |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | | | 970 | | | | 6.125 | | | | 08/01/29 | | | | 1,034 | |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds | | | 2,500 | | | | 6.500 | | | | 08/01/35 | | | | 2,979 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 25,665 | |
| | | | | | | | | | | | | | | | |
| | | | |
| South Carolina - 0.8% | | | | | | | | | | | | | | | | |
Piedmont Municipal Power Agency Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 01/01/20 | | | | 1,190 | |
South Carolina State Public Service Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 12/01/16 | | | | 1,174 | |
South Carolina Transportation Infrastructure Bank Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 10/01/17 | | | | 2,925 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 5,289 | |
| | | | | | | | | | | | | | | | |
| | | | |
| South Dakota - 0.2% | | | | | | | | | | | | | | | | |
South Dakota Housing Development Authority Revenue Bonds | | | 270 | | | | 4.800 | | | | 05/01/22 | | | | 271 | |
South Dakota State Building Authority Revenue Bonds (µ) | | | 1,330 | | | | 5.000 | | | | 09/01/12 | | | | 1,351 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 1,622 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Tennessee - 1.0% | | | | | | | | | | | | | | | | |
City of Memphis Tennessee Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 12/01/14 | | | | 2,766 | |
City of Memphis Tennessee Revenue Bonds | | | 1,135 | | | | 5.000 | | | | 12/01/15 | | | | 1,295 | |
Memphis-Shelby County Airport Authority Revenue Bonds | | | 1,000 | | | | 5.050 | | | | 09/01/12 | | | | 1,014 | |
Metropolitan Government of Nashville & Davidson County Tennessee Water & Sewer Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 07/01/21 | | | | 1,833 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 6,908 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Texas - 8.6% | | | | | | | | | | | | | | | | |
Canadian River Municipal Water Authority Corp. Revenue Bonds (µ) | | | 800 | | | | 5.000 | | | | 02/15/17 | | | | 924 | |
Canadian River Municipal Water Authority Corp. Revenue Bonds (µ) | | | 415 | | | | 5.000 | | | | 02/15/18 | | | | 476 | |
City of Austin Texas Water & Wastewater System Revenue Bonds (µ) | | | 1,000 | | | | 5.250 | | | | 11/15/14 | | | | 1,117 | |
City of Bryan Texas Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/15 | | | | 1,120 | |
City of Dallas Texas Waterworks & Sewer System Revenue Bonds (µ) | | | 2,500 | | | | 5.000 | | | | 10/01/17 | | | | 3,027 | |
City of Dallas Texas Waterworks & Sewer System Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 10/01/18 | | | | 2,465 | |
City of Fort Worth Texas Water & Sewer System Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 02/15/13 | | | | 1,037 | |
City of Fort Worth Texas Water & Sewer System Revenue Bonds | | | 1,340 | | | | 5.000 | | | | 02/15/17 | | | | 1,592 | |
City of Houston Texas Airport System Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 07/01/17 | | | | 1,762 | |
| | | | |
| | 356 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
City of Houston Texas General Obligation Limited | | | 1,375 | | | | 5.250 | | | | 03/01/28 | | | | 1,584 | |
City of Houston Texas Revenue Bonds | | | 1,890 | | | | 5.000 | | | | 09/01/20 | | | | 2,174 | |
City of New Braunfels Texas General Obligation Limited (µ)(æ) | | | 665 | | | | 5.250 | | | | 10/01/14 | | | | 743 | |
City of San Antonio Texas Revenue Bonds | | | 50 | | | | 5.250 | | | | 02/01/13 | | | | 52 | |
City of San Antonio Texas Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 02/01/14 | | | | 1,080 | |
City of San Antonio Texas Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 02/01/18 | | | | 1,212 | |
City of San Antonio Texas Water System Revenue Revenue Bonds | | | 2,250 | | | | 5.000 | | | | 05/15/24 | | | | 2,710 | |
Conroe Independent School District General Obligation Unlimited | | | 1,445 | | | | 5.000 | | | | 02/15/13 | | | | 1,498 | |
Conroe Independent School District General Obligation Unlimited | | | 1,085 | | | | 5.000 | | | | 02/15/25 | | | | 1,282 | |
County of Fort Bend Texas General Obligation Limited (µ) | | | 1,000 | | | | 5.000 | | | | 03/01/16 | | | | 1,157 | |
County of Travis Texas General Obligation Limited | | | 1,000 | | | | 5.000 | | | | 03/01/15 | | | | 1,122 | |
Dallas Convention Center Hotel Development Corp. Revenue Bonds | | | 2,150 | | | | 5.250 | | | | 01/01/23 | | | | 2,415 | |
Dallas Independent School District General Obligation Unlimited | | | 2,100 | | | | 5.000 | | | | 02/15/14 | | | | 2,271 | |
Dallas/Fort Worth International Airport Revenue Bonds | | | 280 | | | | 5.000 | | | | 11/01/22 | | | | 314 | |
Dallas/Fort Worth International Airport Revenue Bonds | | | 200 | | | | 5.000 | | | | 11/01/23 | | | | 223 | |
Dallas/Fort Worth International Airport Revenue Bonds | | | 250 | | | | 5.000 | | | | 11/01/24 | | | | 278 | |
Dickinson Independent School District General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 02/15/23 | | | | 1,106 | |
Fort Worth Independent School District General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 02/15/18 | | | | 2,430 | |
Grand Prairie Independent School District General Obligation Unlimited | | | 750 | | | | 5.000 | | | | 02/15/19 | | | | 881 | |
Lower Colorado River Authority Revenue Bonds (µ) | | | 430 | | | | 5.875 | | | | 05/15/14 | | | | 432 | |
Lower Colorado River Authority Revenue Bonds | | | 1,300 | | | | 5.000 | | | | 05/15/16 | | | | 1,503 | |
North East Independent School District General Obligation Unlimited (µ)(æ) | | | 1,000 | | | | 5.000 | | | | 08/01/14 | | | | 1,104 | |
North Texas Municipal Water District Revenue Bonds (µ) | | | 2,000 | | | | 5.000 | | | | 09/01/13 | | | | 2,124 | |
North Texas Tollway Authority Revenue Bonds | | | 960 | | | | 6.000 | | | | 01/01/24 | | | | 1,125 | |
North Texas Tollway Authority Revenue Bonds (Ê) | | | 1,235 | | | | 5.750 | | | | 01/01/38 | | | | 1,424 | |
Round Rock Independent School District General Obligation Unlimited | | | 1,350 | | | | 5.250 | | | | 08/01/14 | | | | 1,496 | |
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 11/15/16 | | | | 1,751 | |
Texas A&M University Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 05/15/15 | | | | 2,263 | |
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds | | | 1,445 | | | | 7.500 | | | | 12/31/31 | | | | 1,743 | |
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds | | | 1,250 | | | | 7.500 | | | | 06/30/33 | | | | 1,513 | |
Texas Transportation Commission Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 04/01/25 | | | | 2,837 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 57,367 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Utah - 0.3% | | | | | | | | | | | | | | | | |
State of Utah General Obligation Unlimited | | | 2,000 | | | | 5.000 | | | | 07/01/16 | | | | 2,354 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Virgin Islands - 0.0% | | | | | | | | | | | | | | | | |
Virgin Islands Public Finance Authority Revenue Bonds | | | 200 | | | | 5.000 | | | | 10/01/13 | | | | 208 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Virginia - 2.9% | | | | | | | | | | | | | | | | |
Chesapeake Economic Development Authority Revenue Bonds (Ê) | | | 550 | | | | 3.600 | | | | 02/01/32 | | | | 562 | |
Chesterfield County Economic Development Authority Revenue Bonds | | | 650 | | | | 5.000 | | | | 05/01/23 | | | | 745 | |
Commonwealth of Virginia General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 06/01/23 | | | | 1,178 | |
County of Fairfax Virginia General Obligation Unlimited | | | 1,750 | | | | 5.250 | | | | 04/01/14 | | | | 1,914 | |
County of Fairfax Virginia General Obligation Unlimited | | | 3,000 | | | | 5.000 | | | | 04/01/18 | | | | 3,672 | |
University of Virginia Revenue Bonds (æ) | | | 2,345 | | | | 5.000 | | | | 06/01/13 | | | | 2,466 | |
University of Virginia Revenue Bonds | | | 205 | | | | 5.000 | | | | 06/01/20 | | | | 213 | |
University of Virginia Revenue Bonds | | | 240 | | | | 5.000 | | | | 06/01/21 | | | | 248 | |
Virginia College Building Authority Revenue Bonds (æ) | | | 2,065 | | | | 5.000 | | | | 02/01/14 | | | | 2,232 | |
Virginia Commonwealth Transportation Board Revenue Bonds | | | 2,000 | | | | 5.000 | | | | 03/15/18 | | | | 2,425 | |
Virginia Commonwealth Transportation Board Revenue Bonds | | | 1,250 | | | | 4.750 | | | | 05/15/21 | | | | 1,337 | |
Virginia Public Building Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 08/01/14 | | | | 1,101 | |
Virginia Public School Authority Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 08/01/17 | | | | 1,201 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 19,294 | |
| | | | | | | | | | | | | | | | |
| | |
| Russell Tax Exempt Bond Fund | | 357 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate
% | | | Date
of
Maturity | | | Value
$ | |
| | | | | | | | | | | | | | | | |
| Washington - 2.9% | | | | | | | | | | | | | | | | |
City of Seattle Washington Municipal Light & Power Revenue Bonds | | | 1,500 | | | | 5.000 | | | | 02/01/14 | | | | 1,620 | |
Clark County Public Utility District No. 1 Revenue Bonds | | | 1,375 | | | | 5.000 | | | | 01/01/14 | | | | 1,464 | |
County of King Washington Sewer Revenue Bonds (µ) | | | 1,625 | | | | 5.000 | | | | 01/01/14 | | | | 1,750 | |
Energy Northwest Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 07/01/14 | | | | 1,098 | |
Energy Northwest Revenue Bonds | | | 2,500 | | | | 5.000 | | | | 07/01/15 | | | | 2,840 | |
Energy Northwest Revenue Bonds | | | 1,000 | | | | 7.125 | | | | 07/01/16 | | | | 1,250 | |
King County Public Hospital District No. 2 General Obligation Limited (µ) | | | 1,000 | | | | 5.000 | | | | 12/01/19 | | | | 1,128 | |
King County School District No. 405 Bellevue General Obligation Unlimited (µ) | | | 1,000 | | | | 5.000 | | | | 12/01/14 | | | | 1,111 | |
Mason County School District No. 309 Shelton General Obligation Unlimited (µ) | | | 1,115 | | | | 5.000 | | | | 12/01/18 | | | | 1,344 | |
Pierce County School District No. 3 Puyallup General Obligation Unlimited (µ) | | | 1,000 | | | | 5.000 | | | | 12/01/18 | | | | 1,135 | |
Port of Seattle Washington Revenue Bonds | | | 1,000 | | | | 5.000 | | | | 06/01/22 | | | | 1,171 | |
Snohomish County School District No. 15 Edmonds General Obligation Unlimited (µ) | | | 2,000 | | | | 5.000 | | | | 12/01/18 | | | | 2,302 | |
State of Washington General Obligation Unlimited | | | 1,000 | | | | 5.000 | | | | 07/01/17 | | | | 1,195 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 19,408 | |
| | | | | | | | | | | | | | | | |
| | | | |
| West Virginia - 0.2% | | | | | | | | | | | | | | | | |
West Virginia University Revenue Bonds | | | 1,350 | | | | 5.000 | | | | 10/01/21 | | | | 1,672 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Wisconsin - 0.3% | | | | | | | | | | | | | | | | |
Wisconsin Department of Transportation Revenue Bonds (µ) | | | 1,500 | | | | 5.000 | | | | 07/01/19 | | | | 1,861 | |
Wisconsin Health & Educational Facilities Authority Revenue Bonds | | | 210 | | | | 5.250 | | | | 05/01/12 | | | | 210 | |
Wisconsin Health & Educational Facilities Authority Revenue Bonds | | | 220 | | | | 5.250 | | | | 05/01/13 | | | | 225 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 2,296 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Wyoming - 0.2% | | | | | | | | | | | | | | | | |
County of Laramie Wyoming Revenue Bonds | | | 1,000 | | | | 4.000 | | | | 05/01/22 | | | | 1,069 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total Municipal Bonds (cost 577,326) | | | | | | | | | | | | | | | 616,338 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Short-Term Investments - 7.5% | | | | | | | | | | | | | | | | |
Russell U.S. Cash Management Fund | | | 50,160,650 | (¥) | | | | | | | | | | | 50,161 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total Short-Term Investments (cost 50,161) | | | | | | | | | | | | | | | 50,161 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total Investments - 99.4% (identified cost $627,487) | | | | | | | | | | | | | | | 666,499 | |
| | | | |
| Other Assets and Liabilities, Net - 0.6% | | | | | | | | | | | | | | | 4,114 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Net Assets - 100.0% | | | | | | | | | | | | | | | 670,613 | |
| | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 358 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Municipal Bonds | | | | | | | | | | | | | | | | | | | | |
Alabama | | $ | — | | | $ | 9,789 | | | $ | — | | | $ | 9,789 | | | | 1.5 | |
Alaska | | | — | | | | 1,712 | | | | — | | | | 1,712 | | | | 0.3 | |
Arizona | | | — | | | | 21,609 | | | | — | | | | 21,609 | | | | 3.2 | |
Arkansas | | | — | | | | 1,851 | | | | — | | | | 1,851 | | | | 0.3 | |
California | | | — | | | | 63,983 | | | | — | | | | 63,983 | | | | 9.5 | |
Colorado | | | — | | | | 6,888 | | | | — | | | | 6,888 | | | | 1.0 | |
Connecticut | | | — | | | | 5,797 | | | | — | | | | 5,797 | | | | 0.9 | |
Delaware | | | — | | | | 4,245 | | | | — | | | | 4,245 | | | | 0.6 | |
Florida | | | — | | | | 40,846 | | | | — | | | | 40,846 | | | | 6.1 | |
Georgia | | | — | | | | 27,911 | | | | — | | | | 27,911 | | | | 4.2 | |
Guam | | | — | | | | 527 | | | | — | | | | 527 | | | | 0.1 | |
Hawaii | | | — | | | | 3,057 | | | | — | | | | 3,057 | | | | 0.5 | |
Idaho | | | — | | | | 4,004 | | | | — | | | | 4,004 | | | | 0.6 | |
Illinois | | | — | | | | 25,410 | | | | — | | | | 25,410 | | | | 3.8 | |
Indiana | | | — | | | | 9,450 | | | | — | | | | 9,450 | | | | 1.4 | |
Iowa | | | — | | | | 3,084 | | | | — | | | | 3,084 | | | | 0.5 | |
Kansas | | | — | | | | 1,398 | | | | — | | | | 1,398 | | | | 0.2 | |
Louisiana | | | — | | | | 5,229 | | | | — | | | | 5,229 | | | | 0.8 | |
Maryland | | | — | | | | 17,491 | | | | — | | | | 17,491 | | | | 2.6 | |
Massachusetts | | | — | | | | 9,611 | | | | — | | | | 9,611 | | | | 1.4 | |
Michigan | | | — | | | | 11,212 | | | | — | | | | 11,212 | | | | 1.7 | |
Minnesota | | | — | | | | 18,236 | | | | — | | | | 18,236 | | | | 2.7 | |
Mississippi | | | — | | | | 2,913 | | | | — | | | | 2,913 | | | | 0.4 | |
Missouri | | | — | | | | 4,880 | | | | — | | | | 4,880 | | | | 0.7 | |
Nebraska | | | — | | | | 3,305 | | | | — | | | | 3,305 | | | | 0.5 | |
Nevada | | | — | | | | 5,081 | | | | — | | | | 5,081 | | | | 0.8 | |
New Jersey | | | — | | | | 27,001 | | | | — | | | | 27,001 | | | | 4.0 | |
New Mexico | | | — | | | | 3,982 | | | | — | | | | 3,982 | | | | 0.6 | |
New York | | | — | | | | 68,803 | | | | — | | | | 68,803 | | | | 10.3 | |
North Carolina | | | — | | | | 10,279 | | | | — | | | | 10,279 | | | | 1.5 | |
Ohio | | | — | | | | 10,970 | | | | — | | | | 10,970 | | | | 1.6 | |
Oklahoma | | | — | | | | 1,366 | | | | — | | | | 1,366 | | | | 0.2 | |
Oregon | | | — | | | | 7,168 | | | | — | | | | 7,168 | | | | 1.1 | |
Pennsylvania | | | — | | | | 34,098 | | | | — | | | | 34,098 | | | | 5.1 | |
Puerto Rico | | | — | | | | 25,665 | | | | — | | | | 25,665 | | | | 3.8 | |
South Carolina | | | — | | | | 5,289 | | | | — | | | | 5,289 | | | | 0.8 | |
South Dakota | | | — | | | | 1,622 | | | | — | | | | 1,622 | | | | 0.2 | |
Tennessee | | | — | | | | 6,908 | | | | — | | | | 6,908 | | | | 1.0 | |
Texas | | | — | | | | 57,367 | | | | — | | | | 57,367 | | | | 8.6 | |
Utah | | | — | | | | 2,354 | | | | — | | | | 2,354 | | | | 0.3 | |
Virgin Islands | | | — | | | | 208 | | | | — | | | | 208 | | | | — | * |
Virginia | | | — | | | | 19,294 | | | | — | | | | 19,294 | | | | 2.9 | |
Washington | | | — | | | | 19,408 | | | | — | | | | 19,408 | | | | 2.9 | |
West Virginia | | | — | | | | 1,672 | | | | — | | | | 1,672 | | | | 0.2 | |
Wisconsin | | | — | | | | 2,296 | | | | — | | | | 2,296 | | | | 0.3 | |
Wyoming | | | — | | | | 1,069 | | | | — | | | | 1,069 | | | | 0.2 | |
Short-Term Investments | | | — | | | | 50,161 | | | | — | | | | 50,161 | | | | 7.5 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | $ | — | | | $ | 666,499 | | | $ | — | | | $ | 666,499 | | | | 99.4 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | 0.6 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
For a description of the levels see note 2 in the Notes to Financial Statements.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax Exempt Bond Fund | | 359 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 627,487 | |
Investments, at market* | | | 666,499 | |
Receivables: | | | | |
Interest | | | 8,357 | |
Dividends from affiliated Russell money market funds | | | 6 | |
Fund shares sold | | | 2,643 | |
Prepaid expenses | | | 1 | |
| | | | |
Total assets | | | 677,506 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 5,910 | |
Fund shares redeemed | | | 599 | |
Accrued fees to affiliates | | | 300 | |
Other accrued expenses | | | 84 | |
| | | | |
Total liabilities | | | 6,893 | |
| | | | |
| | | | |
Net Assets | | $ | 670,613 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 360 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 1,443 | |
Accumulated net realized gain (loss) | | | (5,078 | ) |
Unrealized appreciation (depreciation) on investments | | | 39,012 | |
Shares of beneficial interest | | | 292 | |
Additional paid-in capital | | | 634,944 | |
| | | | |
Net Assets | | $ | 670,613 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 23.06 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | | $ | 23.96 | |
Class A — Net assets | | $ | 7,742,964 | |
Class A — Shares outstanding ($.01 par value) | | | 335,743 | |
Net asset value per share: Class C(a) | | $ | 22.94 | |
Class C — Net assets | | $ | 27,459,573 | |
Class C — Shares outstanding ($.01 par value) | | | 1,197,039 | |
Net asset value per share: Class E(a) | | $ | 23.02 | |
Class E — Net assets | | $ | 35,231,719 | |
Class E — Shares outstanding ($.01 par value) | | | 1,530,519 | |
Net asset value per share: Class S(a) | | $ | 22.98 | |
Class S — Net assets | | $ | 600,178,445 | |
Class S — Shares outstanding ($.01 par value) | | | 26,112,925 | |
Amounts in thousands | | | | |
| | | | |
* Investments in affiliates, Russell U.S. Cash Management Fund | | $ | 50,161 | |
(a) 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.
| | |
| Russell Tax Exempt Bond Fund | | 361 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends from affiliated Russell money market funds | | $ | 22 | |
Interest | | | 10,499 | |
| | | | |
Total investment income | | | 10,521 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 944 | |
Administrative fees | | | 157 | |
Custodian fees | | | 45 | |
Distribution fees - Class A | | | 6 | |
Distribution fees - Class C | | | 93 | |
Transfer agent fees - Class A | | | 4 | |
Transfer agent fees - Class C | | | 22 | |
Transfer agent fees - Class E | | | 28 | |
Transfer agent fees - Class S | | | 511 | |
Professional fees | | | 28 | |
Registration fees | | | 58 | |
Shareholder servicing fees - Class C | | | 31 | |
Shareholder servicing fees - Class E | | | 39 | |
Trustees’ fees | | | 6 | |
Printing fees | | | 5 | |
Miscellaneous | | | 11 | |
| | | | |
Expenses before reductions | | | 1,988 | |
Expense reductions | | | (124 | ) |
| | | | |
Net expenses | | | 1,864 | |
| | | | |
Net investment income (loss) | | | 8,657 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on investments | | | 929 | |
Net change in unrealized appreciation (depreciation) on investments | | | 15,062 | |
| | | | |
Net realized and unrealized gain (loss) | | | 15,991 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 24,648 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 362 | | | Russell Tax Exempt Bond Fund |
Russell Investment Company
Russell Tax Exempt Bond Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 8,657 | | | $ | 17,156 | |
Net realized gain (loss) | | | 929 | | | | (526 | ) |
Net change in unrealized appreciation (depreciation) | | | 15,062 | | | | (3,191 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 24,648 | | | | 13,439 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (55 | ) | | | (65 | ) |
Class C | | | (234 | ) | | | (519 | ) |
Class E | | | (405 | ) | | | (915 | ) |
Class S | | | (8,109 | ) | | | (15,620 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (8,803 | ) | | | (17,119 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 59,186 | | | | 43,544 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 75,031 | | | | 39,864 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 595,582 | | | | 555,718 | |
| | | | | | | | |
End of period | | $ | 670,613 | | | $ | 595,582 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 1,443 | | | $ | 1,589 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax Exempt Bond Fund | | 363 |
Russell Investment Company
Russell Tax Exempt Bond Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | |
$
Net
Investment
Income (Loss)(a)(d) | | |
$
Net Realized
and Unrealized
Gain (Loss) | | |
$
Total from
Investment
Operations | | |
$
Distributions
from Net
Investment Income | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.48 | | | | .28 | | | | .60 | | | | .88 | | | | (.30 | ) |
October 31, 2011 | | | 22.64 | | | | .62 | | | | (.16 | ) | | | .46 | | | | (.62 | ) |
October 31, 2010(5) | | | 22.31 | | | | .27 | | | | .29 | | | | .56 | | | | (.23 | ) |
Class C | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.36 | | | | .20 | | | | .60 | | | | .80 | | | | (.22 | ) |
October 31, 2011 | | | 22.53 | | | | .47 | | | | (.18 | ) | | | .29 | | | | (.46 | ) |
October 31, 2010 | | | 21.87 | | | | .51 | | | | .66 | | | | 1.17 | | | | (.51 | ) |
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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.44 | | | | .29 | | | | .59 | | | | .88 | | | | (.30 | ) |
October 31, 2011 | | | 22.61 | | | | .63 | | | | (.17 | ) | | | .46 | | | | (.63 | ) |
October 31, 2010 | | | 21.94 | | | | .68 | | | | .67 | | | | 1.35 | | | | (.68 | ) |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 22.41 | | | | .32 | | | | .58 | | | | .90 | | | | (.33 | ) |
October 31, 2011 | | | 22.57 | | | | .69 | | | | (.16 | ) | | | .53 | | | | (.69 | ) |
October 31, 2010 | | | 21.91 | | | | .73 | | | | .66 | | | | 1.39 | | | | (.73 | ) |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 364 | | | Russell Tax Exempt Bond Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.30 | ) | | | 23.06 | | | | 3.93 | | | | 7,743 | | | | .83 | | | | .83 | | | | 2.49 | | | | 15 | |
| | (.62 | ) | | | 22.48 | | | | 2.11 | | | | 2,918 | | | | .83 | | | | .83 | | | | 2.80 | | | | 29 | |
| | (.23 | ) | | | 22.64 | | | | 2.51 | | | | 1,791 | | | | .85 | | | | .85 | | | | 2.85 | | | | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.22 | ) | | | 22.94 | | | | 3.58 | | | | 27,460 | | | | 1.58 | | | | 1.54 | | | | 1.80 | | | | 15 | |
| | (.46 | ) | | | 22.36 | | | | 1.35 | | | | 22,694 | | | | 1.59 | | | | 1.54 | | | | 2.12 | | | | 29 | |
| | (.51 | ) | | | 22.53 | | | | 5.43 | | | | 28,301 | | | | 1.59 | | | | 1.51 | | | | 2.31 | | | | 24 | |
| | (.55 | ) | | | 21.87 | | | | 9.42 | | | | 24,393 | | | | 1.58 | | | | 1.50 | | | | 2.53 | | | | 52 | |
| | (.55 | ) | | | 20.51 | | | | (1.25 | ) | | | 16,541 | | | | 1.56 | | | | 1.54 | | | | 2.61 | | | | 54 | |
| | (.58 | ) | | | 21.31 | | | | 1.21 | | | | 12,722 | | | | 1.55 | | | | 1.55 | | | | 2.72 | | | | 72 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.30 | ) | | | 23.02 | | | | 3.94 | | | | 35,232 | | | | .83 | | | | .79 | | | | 2.55 | | | | 15 | |
| | (.63 | ) | | | 22.44 | | | | 2.12 | | | | 29,512 | | | | .84 | | | | .79 | | | | 2.86 | | | | 29 | |
| | (.68 | ) | | | 22.61 | | | | 6.25 | | | | 33,042 | | | | .84 | | | | .76 | | | | 3.05 | | | | 24 | |
| | (.70 | ) | | | 21.94 | | | | 10.19 | | | | 23,434 | | | | .84 | | | | .76 | | | | 3.29 | | | | 52 | |
| | (.71 | ) | | | 20.57 | | | | (.46 | ) | | | 18,422 | | | | .81 | | | | .79 | | | | 3.37 | | | | 54 | |
| | (.74 | ) | | | 21.38 | | | | 1.96 | | | | 19,442 | | | | .80 | | | | .80 | | | | 3.48 | | | | 72 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.33 | ) | | | 22.98 | | | | 4.07 | | | | 600,178 | | | | .58 | | | | .54 | | | | 2.81 | | | | 15 | |
| | (.69 | ) | | | 22.41 | | | | 2.43 | | | | 540,458 | | | | .59 | | | | .54 | | | | 3.11 | | | | 29 | |
| | (.73 | ) | | | 22.57 | | | | 6.47 | | | | 492,584 | | | | .59 | | | | .51 | | | | 3.30 | | | | 24 | |
| | (.76 | ) | | | 21.91 | | | | 10.48 | | | | 411,956 | | | | .58 | | | | .50 | | | | 3.53 | | | | 52 | |
| | (.77 | ) | | | 20.54 | | | | (.23 | ) | | | 366,707 | | | | .56 | | | | .54 | | | | 3.61 | | | | 54 | |
| | (.79 | ) | | | 21.36 | | | | 2.26 | | | | 336,275 | | | | .55 | | | | .55 | | | | 3.72 | | | | 72 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Tax Exempt Bond Fund | | 365 |
Russell Investment Company
Russell Commodity Strategies Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 937.23 | | | $ | 1,017.21 | |
Expenses Paid During Period* | | $ | 7.42 | | | $ | 7.72 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 933.84 | | | $ | 1,013.48 | |
Expenses Paid During Period* | | $ | 11.01 | | | $ | 11.46 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.29% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 937.70 | | | $ | 1,017.21 | |
Expenses Paid During Period* | | $ | 7.42 | | | $ | 7.72 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 937.99 | | | $ | 1,018.45 | |
Expenses Paid During Period* | | $ | 6.22 | | | $ | 6.47 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.29% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 366 | | | Russell Commodity Strategies Fund |
Russell Investment Company
Russell Commodity Strategies Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 939.79 | | | $ | 1,019.34 | |
Expenses Paid During Period* | | $ | 5.35 | | | $ | 5.57 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Commodity Strategies Fund | | 367 |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Long-Term Investments - 4.3% | | | | | | | | |
| United States Government Agencies - 4.3% | |
Federal Farm Credit Bank
0.189% due 07/29/13 (Ê) | | | 10,100 | | | | 10,100 | |
Federal Home Loan Banks
0.200% due 05/02/13 | | | 12,000 | | | | 11,993 | |
Federal Home Loan Mortgage Corp. 0.191% due 05/06/13 (Ê) | | | 10,000 | | | | 10,012 | |
Federal National Mortgage Association 0.550% due 08/23/13 | | | 7,000 | | | | 7,004 | |
0.211% due 11/08/13 (Ê) | | | 15,000 | | | | 15,002 | |
| | | | | | | | |
| | | | | | | 54,111 | |
| | | | | | | | |
| | |
Total Long-Term Investments
(cost $54,087) | | | | | | | 54,111 | |
| | | | | | | | |
| | |
| Short-Term Investments - 90.8% | | | | | | | | |
Federal Farm Credit Bank
0.400% due 08/17/12 (Ê)(§) | | | 8,000 | | | | 8,005 | |
0.206% due 02/11/13 (Ê) | | | 22,000 | | | | 22,008 | |
0.210% due 03/15/13 (Ê) | | | 20,000 | | | | 20,008 | |
Federal Farm Credit Discount Notes
Zero coupon due 05/15/12 | | | 11,000 | | | | 11,000 | |
Zero coupon due 11/20/12 | | | 10,000 | | | | 9,993 | |
Federal Home Loan Banks
0.201% due 09/04/12 (Ê) | | | 18,000 | | | | 18,008 | |
0.179% due 11/01/12 (Ê) | | | 18,000 | | | | 18,003 | |
0.200% due 11/21/12 | | | 16,000 | | | | 15,998 | |
0.280% due 03/06/13 | | | 10,000 | | | | 10,003 | |
0.240% due 04/12/13 | | | 13,000 | | | | 12,998 | |
Series 1
0.360% due 03/15/13 (Ê) | | | 15,000 | | | | 15,022 | |
Federal Home Loan Mortgage Corp. 1.000% due 08/28/12 | | | 12,000 | | | | 12,034 | |
0.515% due 11/26/12 | | | 10,000 | | | | 10,017 | |
0.750% due 12/28/12 | | | 15,000 | | | | 15,051 | |
0.200% due 03/21/13 (Ê) | | | 18,000 | | | | 18,010 | |
Federal National Mortgage Association 0.260% due 08/23/12 (Ê) | | | 17,500 | | | | 17,506 | |
0.270% due 09/17/12 (Ê) | | | 15,000 | | | | 15,007 | |
0.330% due 12/03/12 (Ê) | | | 15,000 | | | | 15,014 | |
0.375% due 12/28/12 | | | 12,500 | | | | 12,518 | |
Freddie Mac Discount Notes
Zero coupon due 05/24/12 | | | 20,000 | | | | 19,999 | |
Russell U.S. Cash Management Fund | | | 368,506,031 | (¥) | | | 368,506 | |
United States Treasury Bills
0.061% due 05/24/12 | | | 100,000 | | | | 99,996 | |
0.064% due 05/31/12 | | | 100,000 | | | | 99,994 | |
Zero coupon due 06/28/12 (ç)(ž)(§) | | | 6,700 | | | | 6,699 | |
Zero coupon due 07/19/12 (ž)(§) | | | 48,000 | | | | 47,991 | |
0.101% due 08/16/12 | | | 5,000 | | | | 4,998 | |
0.115% due 08/23/12 | | | 7,000 | | | | 6,998 | |
0.132% due 08/30/12 | | | 100,000 | | | | 99,964 | |
0.132% due 09/27/12 (§) | | | 5,000 | | | | 4,997 | |
0.143% due 09/27/12 (§) | | | 20,000 | | | | 19,990 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
0.142% due 10/11/12 (§) | | | 18,000 | | | | 17,989 | |
0.135% due 10/18/12 | | | 10,000 | | | | 9,993 | |
United States Treasury Notes
Zero coupon due 06/15/12 | | | 10,000 | | | | 10,022 | |
0.375% due 08/31/12 (§) | | | 5,000 | | | | 5,004 | |
0.375% due 09/30/12 (§) | | | 10,000 | | | | 10,010 | |
0.375% due 10/31/12 (§) | | | 10,000 | | | | 10,011 | |
1.125% due 12/15/12 (§) | | | 5,000 | | | | 5,029 | |
0.625% due 04/30/13 | | | 18,000 | | | | 18,074 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $1,142,354) | | | | | | | 1,142,467 | |
| | | | | | | | |
| | |
Total Investments - 95.1%
(identified cost $1,196,441) | | | | | | | 1,196,578 | |
| | |
Other Assets and Liabilities,
Net - 4.9% | | | | | | | 61,711 | |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,258,289 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 368 | | | Russell Commodity Strategies Fund |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Long Positions | | | | | | | | | | | | | | | | | | | | |
Corn Futures | | | 496 | | | | USD | | | | 13,473 | | | | 12/12 | | | | (658) | |
Light Sweet Crude Oil Futures | | | 412 | | | | USD | | | | 43,552 | | | | 08/12 | | | | (1,019) | |
Natural Gas Futures | | | 454 | | | | USD | | | | 11,391 | | | | 08/12 | | | | (1,829) | |
Soybean Futures | | | 76 | | | | USD | | | | 5,248 | | | | 11/12 | | | | 53 | |
Short Positions | | | | | | | | | | | | | | | | | | | | |
Corn Futures | | | 496 | | | | USD | | | | 15,729 | | | | 07/12 | | | | (314) | |
Light Sweet Crude Oil Futures | | | 412 | | | | USD | | | | 43,207 | | | | 05/12 | | | | (189) | |
Natural Gas Futures | | | 454 | | | | USD | | | | 10,869 | | | | 06/12 | | | | (853) | |
Soybean Futures | | | 76 | | | | USD | | | | 5,721 | | | | 07/12 | | | | (46) | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | | | | | | | | | | | | | | | | | | | (4,855) | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Commodity Strategies Fund | | 369 |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Index Swaps | | | | | | | | | | | | | | | |
Fund Receives Underlying Security | | Counterparty | | Notional
Amount
$ | | Fund Pays | | Termination
Date | | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
Dow Jones-UBS Commodity Index | | Merrill Lynch | | | USD | | | 6,000 | | 0.140% | | | 10/31/12 | | | | 135 | |
Dow Jones-UBS Commodity Index 3 Month Forward | | Merrill Lynch | | | USD | | | 3,528 | | 0.250% | | | 06/20/12 | | | | (37 | ) |
Dow Jones-UBS Commodity Index 3 Month Forward | | Merrill Lynch | | | USD | | | 99,471 | | 0.250% | | | 06/20/12 | | | | (1,050 | ) |
Dow Jones-UBS Commodity Index 3 Month Forward | | Merrill Lynch | | | USD | | | 121,670 | | 0.250% | | | 06/20/12 | | | | (1,284 | ) |
Dow Jones-UBS Commodity Index 3 Month Forward | | Merrill Lynch | | | USD | | | 6,239 | | 0.250% | | | 06/20/12 | | | | (66 | ) |
Dow Jones-UBS Commodity Index 3 Month Forward | | Merrill Lynch | | | USD | | | 8,881 | | 0.250% | | | 06/20/12 | | | | (94 | ) |
Dow Jones-UBS Commodity Index 3 Month Forward | | UBS | | | USD | | | 144,464 | | 0.250% | | | 01/28/13 | | | | (1,525 | ) |
Dow Jones-UBS Commodity Index 3 Month Forward | | UBS AG | | | USD | | | 119,656 | | 0.250% | | | 01/28/13 | | | | (1,263 | ) |
Dow Jones-UBS Commodity Index Total Return | | Morgan Stanley | | | USD | | | 31,093 | | 1.000% | | | 12/23/13 | | | | 763 | |
Dow Jones-UBS Commodity Index Total Return | | UBS AG | | | USD | | | 47,215 | | USD 3 Month T-Bill plus 0.148% | | | 05/24/12 | | | | 1,078 | |
Dow Jones-UBS Commodity Index Total Return | | UBS AG | | | USD | | | 24,502 | | USD 3 Month T-Bill plus 0.128% | | | 05/24/12 | | | | 560 | |
Dow Jones-UBS Commodity Index Total Return | | UBS AG | | | USD | | | 40,800 | | USD 3 Month T-Bill plus 0.250% | | | 05/24/12 | | | | 932 | |
Dow Jones-UBS Commodity Index Total Return 2 Month Forward | | Morgan Stanley | | | USD | | | 240,275 | | 1.000% | | | 12/23/13 | | | | 5,009 | |
Dow Jones-UBS Commodity Index Total Return 2 Month Forward | | UBS AG | | | USD | | | 40,379 | | USD 3 Month T-Bill plus 0.296% | | | 05/24/12 | | | | 760 | |
Dow Jones-UBS Commodity Index Total Return 2 Month Forward | | UBS AG | | | USD | | | 55,759 | | USD 3 Month T-Bill plus 0.296% | | | 05/24/12 | | | | 1,050 | |
Russell Jeffries Diversified I Index | | Newedge Group | | | USD | | | 254,456 | | 0.350% | | | 09/09/31 | | | | 1,061 | |
| | | | | | | | | | | | | | | | | | |
Total Market Value of Open Index Swap Contracts Premiums Paid (Received) - $— (å) | | | | | | | | | 6,029 | |
| | | | | | | | | | | | | | | | | | |
Consolidated Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
United States Government Agencies | | $ | — | | | $ | 54,111 | | | $ | — | | | $ | 54,111 | | | | 4.3 | |
Short-Term Investments | | | — | | | | 1,142,467 | | | | — | | | | 1,142,467 | | | | 90.8 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | — | | | | 1,196,578 | | | | — | | | | 1,196,578 | | | | 95.1 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | 4.9 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | (4,855 | ) | | | — | | | | — | | | | (4,855 | ) | | | (0.4 | ) |
Index Swap Contracts | | | — | | | | 6,029 | | | | — | | | | 6,029 | | | | 0.5 | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments* | | $ | (4,855 | ) | | $ | 6,029 | | | $ | — | | | $ | 1,174 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 370 | | | Russell Commodity Strategies Fund |
Russell Investment Company
Russell Commodity Strategies Fund
Fair Value of Derivative Instruments — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | |
| Derivatives not accounted for as hedging instruments | | Commodity
Contracts | |
| | | | |
Location: Statement of Assets and Liabilities - Assets | | | | |
Daily variation margin on futures contracts* | | $ | 53 | |
Index swap contracts, at market value | | | 11,348 | |
| | | | |
Total | | $ | 11,401 | |
| | | | |
Location: Statement of Assets and Liabilities - Liabilities | | | | |
Daily variation margin on futures contracts* | | $ | 4,908 | |
Index swap contracts, at market value | | | 5,319 | |
| | | | |
Total | | $ | 10,227 | |
| | | | |
| |
| Derivatives not accounted for as hedging instruments | | Commodity
Contracts | |
| | | | |
Location: Statement of Operations - Net realized gain (loss) | | | | |
Futures contracts | | $ | 4,964 | |
Index swap contracts | | | (77,822 | ) |
| | | | |
Total | | $ | (72,858 | ) |
| | | | |
Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | |
Futures contracts | | $ | (4,629 | ) |
Index swap contracts | | | 5,675 | |
| | | | |
Total | | $ | 1,046 | |
| | | | |
| * | 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 Asset and 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 Commodity Strategies Fund | | 371 |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Statement of Assets and Liabilities(b) — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,196,441 | |
Investments, at market* | | | 1,196,578 | |
Cash (restricted) | | | 55,440 | |
Receivables: | | | | |
Dividends and interest | | | 280 | |
Dividends from affiliated Russell money market funds | | | 47 | |
Investments sold | | | 580 | |
Fund shares sold | | | 2,685 | |
From affiliates | | | 4 | |
Index swap contracts, at market value** | | | 11,348 | |
| | | | |
Total assets | | | 1,266,962 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to custodian | | | 27 | |
Fund shares redeemed | | | 1,844 | |
Accrued fees to affiliates | | | 1,161 | |
Other accrued expenses | | | 159 | |
Daily variation margin on futures contracts | | | 163 | |
Index swap contracts, at market value** | | | 5,319 | |
| | | | |
Total liabilities | | | 8,673 | |
| | | | |
| | | | |
Net Assets | | $ | 1,258,289 | |
| | | | |
| | | | |
(b) The Statement of Assets and Liabilities is consolidated and includes the balances of Russell Cayman Commodity Strategies Fund Ltd. (Wholly owned subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to Note 3 in the Notes to Financial Statements. | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 372 | | | Russell Commodity Strategies Fund |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Statement of Assets and Liabilities(b), continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (4,829 | ) |
Accumulated net realized gain (loss) | | | (100,894 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments | | | 137 | |
Futures contracts | | | (4,855 | ) |
Index swap contracts | | | 6,029 | |
Shares of beneficial interest | | | 1,323 | |
Additional paid-in capital | | | 1,361,378 | |
| | | | |
Net Assets | | $ | 1,258,289 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 9.50 | |
Maximum offering price per share (Net asset value plus sales charge of 3.75%): Class A | | $ | 9.87 | |
Class A — Net assets | | $ | 20,699,188 | |
Class A — Shares outstanding ($.01 par value) | | | 2,179,300 | |
Net asset value per share: Class C(a) | | $ | 9.43 | |
Class C — Net assets | | $ | 14,102,892 | |
Class C — Shares outstanding ($.01 par value) | | | 1,495,482 | |
Net asset value per share: Class E(a) | | $ | 9.50 | |
Class E — Net assets | | $ | 16,165,735 | |
Class E — Shares outstanding ($.01 par value) | | | 1,702,422 | |
Net asset value per share: Class S(a) | | $ | 9.51 | |
Class S — Net assets | | $ | 705,176,962 | |
Class S — Shares outstanding ($.01 par value) | | | 74,142,827 | |
Net asset value per share: Class Y(a) | | $ | 9.52 | |
Class Y — Net assets | | $ | 502,144,536 | |
Class Y — Shares outstanding ($.01 par value) | | | 52,768,888 | |
Amounts in thousands | | | | |
| | | | |
* Investments in affiliates, Russell U.S. Cash Management Fund | | $ | 368,506 | |
** Index swap contracts - premiums paid (received) | | $ | — | |
(a) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding. | | | | |
(b) The Statement of Assets and Liabilities is consolidated and includes the balance of Russell Cayman Commodity Strategies Fund Ltd. (wholly owned subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to Note 3 in the Notes to Financial Statements. | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Commodity Strategies Fund | | 373 |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Statement of Operations(b) — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
| | | | |
Investment Income | | | | |
Dividends from affiliated Russell money market funds | | $ | 285 | |
Interest | | | 656 | |
| | | | |
Total investment income | | | 941 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 9,168 | |
Administrative fees | | | 367 | |
Custodian fees | | | 134 | |
Distribution fees - Class A | | | 26 | |
Distribution fees - Class C | | | 55 | |
Transfer agent fees - Class A | | | 19 | |
Transfer agent fees - Class C | | | 13 | |
Transfer agent fees - Class E | | | 13 | |
Transfer agent fees - Class S | | | 618 | |
Transfer agent fees - Class Y | | | 11 | |
Professional fees | | | 77 | |
Registration fees | | | 85 | |
Shareholder servicing fees - Class C | | | 18 | |
Shareholder servicing fees - Class E | | | 18 | |
Trustees’ fees | | | 11 | |
Printing fees | | | 120 | |
Miscellaneous | | | 51 | |
| | | | |
Expenses before reductions | | | 10,804 | |
Expense reductions | | | (3,240 | ) |
| | | | |
Net expenses | | | 7,564 | |
| | | | |
Net investment income (loss) | | | (6,623 | ) |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 29 | |
Futures contracts | | | 4,964 | |
Index swap contracts | | | (77,822 | ) |
| | | | |
Net realized gain (loss) | | | (72,829 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments | | | (11 | ) |
Futures contracts | | | (4,629 | ) |
Index swap contracts | | | 5,675 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 1,035 | |
| | | | |
Net realized and unrealized gain (loss) | | | (71,794 | ) |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | (78,417 | ) |
| | | | |
| (b) | The Statement of Operations is consolidated and includes the balances of Russell Cayman Commodity Strategies Fund Ltd. (wholly owned subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to Note 3 in the Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 374 | | | Russell Commodity Strategies Fund |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Statements of Changes in Net Assets(b)
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | (6,623 | ) | | $ | (12,223 | ) |
Net realized gain (loss) | | | (72,829 | ) | | | 36,945 | |
Net change in unrealized appreciation (depreciation) | | | 1,035 | | | | (2,612 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | (78,417 | ) | | | 22,110 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (294 | ) | | | (1,216 | ) |
Class C | | | (134 | ) | | | (631 | ) |
Class E | | | (203 | ) | | | (1,909 | ) |
Class S | | | (11,586 | ) | | | (63,001 | ) |
Class Y | | | (9,045 | ) | | | (67,667 | ) |
From net realized gain | | | | | | | | |
Class A | | | (480 | ) | | | — | * |
Class C | | | (362 | ) | | | — | * |
Class E | | | (343 | ) | | | — | * |
Class S | | | (16,092 | ) | | | (4 | ) |
Class Y | | | (11,382 | ) | | | (5 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (49,921 | ) | | | (134,433 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 150,637 | | | | 351,349 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 22,299 | | | | 239,026 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,235,990 | | | | 996,964 | |
| | | | | | | | |
End of period | | $ | 1,258,289 | | | $ | 1,235,990 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (4,829 | ) | | $ | 23,056 | |
| (b) | The Statement of Changes in Net Assets is consolidated and includes the balances of Russell Cayman Commodity Strategies Fund Ltd. (wholly owned subsidiary). Accordingly, all interfund balances and transactions have been eliminated. Refer to Note 3 in the Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Commodity Strategies Fund | | 375 |
Russell Investment Company
Russell Commodity Strategies Fund
Consolidated Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | |
$
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Total
Distributions | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.55 | | | | (.07 | ) | | | (.59 | ) | | | (.66 | ) | | | (.15 | ) | | | (.24 | ) | | | (.39 | ) |
October 31, 2011 | | | 11.65 | | | | (.15 | ) | | | .53 | | | | .38 | | | | (1.48 | ) | | | — | (f) | | | (1.48 | ) |
October 31, 2010(6) | | | 10.00 | | | | (.05 | ) | | | 1.70 | | | | 1.65 | | | | — | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.45 | | | | (.10 | ) | | | (.59 | ) | | | (.69 | ) | | | (.09 | ) | | | (.24 | ) | | | (.33 | ) |
October 31, 2011 | | | 11.61 | | | | (.23 | ) | | | .52 | | | | .29 | | | | (1.45 | ) | | | — | (f) | | | (1.45 | ) |
October 31, 2010(6) | | | 10.00 | | | | (.08 | ) | | | 1.69 | | | | 1.61 | | | | — | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.54 | | | | (.07 | ) | | | (.58 | ) | | | (.65 | ) | | | (.15 | ) | | | (.24 | ) | | | (.39 | ) |
October 31, 2011 | | | 11.64 | | | | (.15 | ) | | | .52 | | | | .37 | | | | (1.47 | ) | | | — | (f) | | | (1.47 | ) |
October 31, 2010(6) | | | 10.00 | | | | (.06 | ) | | | 1.70 | | | | 1.64 | | | | — | | | | — | | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.58 | | | | (.06 | ) | | | (.59 | ) | | | (.65 | ) | | | (.18 | ) | | | (.24 | ) | | | (.42 | ) |
October 31, 2011 | | | 11.65 | | | | (.12 | ) | | | .53 | | | | .41 | | | | (1.48 | ) | | | — | (f) | | | (1.48 | ) |
October 31, 2010(6) | | | 10.00 | | | | (.04 | ) | | | 1.69 | | | | 1.65 | | | | — | | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.59 | | | | (.05 | ) | | | (.59 | ) | | | (.64 | ) | | | (.19 | ) | | | (.24 | ) | | | (.43 | ) |
October 31, 2011 | | | 11.65 | | | | (.10 | ) | | | .53 | | | | .43 | | | | (1.49 | ) | | | — | (f) | | | (1.49 | ) |
October 31, 2010(6) | | | 10.00 | | | | (.04 | ) | | | 1.69 | | | | 1.65 | | | | — | | | | — | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 376 | | | Russell Commodity Strategies Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.50 | | | | (6.28 | ) | | | 20,699 | | | | 2.06 | | | | 1.54 | | | | (1.39 | ) | | | 27 | |
| | 10.55 | | | | 2.85 | | | | 21,609 | | | | 1.78 | | | | 1.48 | | | | (1.30 | ) | | | 123 | |
| | 11.65 | | | | 16.50 | | | | 5,144 | | | | 1.91 | | | | 1.41 | | | | (1.48 | ) | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.43 | | | | (6.62 | ) | | | 14,103 | | | | 2.80 | | | | 2.29 | | | | (2.14 | ) | | | 27 | |
| | 10.45 | | | | 2.07 | | | | 14,748 | | | | 2.53 | | | | 2.23 | | | | (2.05 | ) | | | 123 | |
| | 11.61 | | | | 16.10 | | | | 3,323 | | | | 2.66 | | | | 2.16 | | | | (2.23 | ) | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.50 | | | | (6.23 | ) | | | 16,166 | | | | 2.09 | | | | 1.54 | | | | (1.38 | ) | | | 27 | |
| | 10.54 | | | | 2.81 | | | | 14,850 | | | | 1.78 | | | | 1.48 | | | | (1.30 | ) | | | 123 | |
| | 11.64 | | | | 16.40 | | | | 14,962 | | | | 1.90 | | | | 1.41 | | | | (1.48 | ) | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.51 | | | | (6.20 | ) | | | 705,177 | | | | 1.82 | | | | 1.29 | | | | (1.14 | ) | | | 27 | |
| | 10.58 | | | | 3.15 | | | | 690,537 | | | | 1.53 | | | | 1.23 | | | | (1.05 | ) | | | 123 | |
| | 11.65 | | | | 16.50 | | | | 428,347 | | | | 1.66 | | | | 1.16 | | | | (1.23 | ) | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.52 | | | | (6.02 | ) | | | 502,144 | | | | 1.64 | | | | 1.11 | | | | (.96 | ) | | | 27 | |
| | 10.59 | | | | 3.31 | | | | 494,246 | | | | 1.35 | | | | 1.05 | | | | (.87 | ) | | | 123 | |
| | 11.65 | | | | 16.50 | | | | 545,188 | | | | 1.48 | | | | .98 | | | | (1.05 | ) | | | 11 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Commodity Strategies Fund | | 377 |
Russell Investment Company
Russell Global Infrastructure Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000 .00 | | | $ | 1,000 .00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,078 .57 | | | $ | 1,017 .55 | |
Expenses Paid During Period* | | $ | 7 .60 | | | $ | 7 .37 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.47% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000 .00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.32 | | | $ | 1,013 .82 | |
Expenses Paid During Period* | | $ | 11 .46 | | | $ | 11 .12 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.22% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,078.59 | | | $ | 1,017.55 | |
Expenses Paid During Period* | | $ | 7 .60 | | | $ | 7 .37 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.47% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,079.83 | | | $ | 1,018.80 | |
Expenses Paid During Period* | | $ | 6 .31 | | | $ | 6 .12 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.22% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 378 | | | Russell Global Infrastructure Fund |
Russell Investment Company
Russell Global Infrastructure Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,081.63 | | | $ | 1,019.59 | |
Expenses Paid During Period* | | $ | 5 .49 | | | $ | 5 .32 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Global Infrastructure Fund | | 379 |
Russell Investment Company
Russell Global Infrastructure Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 95.0% | |
| Australia - 9.6% | | | | | | | | |
APA Group (Ñ) | | | 282,613 | | | | 1,537 | |
Asciano, Ltd. | | | 1,453,962 | | | | 7,166 | |
Australian Infrastructure Fund Class Miscellaneous (Ñ) | | | 2,637,304 | | | | 6,128 | |
DUET Group | | | 1,305,532 | | | | 2,517 | |
Macquarie Atlas Roads Group (Æ) | | | 181,582 | | | | 313 | |
QR National, Ltd. | | | 513,265 | | | | 1,947 | |
Spark Infrastructure Group (Ñ)(Þ) | | | 5,072,565 | | | | 7,664 | |
Sydney Airport | | | 3,871,948 | | | | 11,740 | |
Transurban Group - ADR (Æ) | | | 7,866,153 | | | | 48,111 | |
| | | | | | | | |
| | | | | | | 87,123 | |
| | | | | | | | |
| | |
| Austria - 0.1% | | | | | | | | |
Oesterreichische Post AG (Ñ) | | | 27,844 | | | | 988 | |
| | | | | | | | |
| | |
| Belgium - 0.1% | | | | | | | | |
Elia System Operator SA | | | 11,764 | | | | 503 | |
| | | | | | | | |
| | |
| Bermuda - 0.6% | | | | | | | | |
Brookfield Renewable Energy Partners, LP | | | 67,736 | | | | 1,897 | |
GasLog, Ltd. (Æ) | | | 160,989 | | | | 1,880 | |
NWS Holdings, Ltd. | | | 1,126,942 | | | | 1,702 | |
| | | | | | | | |
| | | | | | | 5,479 | |
| | | | | | | | |
| | |
| Brazil - 3.0% | | | | | | | | |
CCR SA | | | 373,304 | | | | 2,898 | |
Cia de Saneamento Basico do Estado de Sao Paulo - ADR (Æ)(Ñ) | | | 31,325 | | | | 2,480 | |
Cia de Saneamento de Minas Gerais - COPASA (Æ) | | | 94,154 | | | | 2,197 | |
Cia Paranaense de Energia - ADR (Æ)(Ñ) | | | 31,440 | | | | 788 | |
CPFL Energia SA - ADR (Ñ) | | | 50,635 | | | | 1,428 | |
EDP - Energias do Brasil SA | | | 950,184 | | | | 6,645 | |
LLX Logistica SA (Æ) | | | 2,522,700 | | | | 4,222 | |
Santos Brasil Participacoes SA | | | 72,693 | | | | 1,266 | |
Ultrapar Participacoes SA | | | 83,320 | | | | 1,893 | |
Ultrapar Participacoes SA - ADR | | | 47,952 | | | | 1,085 | |
Wilson Sons, Ltd. Class BDR | | | 163,019 | | | | 2,438 | |
| | | | | | | | |
| | | | | | | 27,340 | |
| | | | | | | | |
| | |
| Canada - 10.2% | | | | | | | | |
Brookfield Infrastructure Partners, LP | | | 182,906 | | | | 5,769 | |
Brookfield Renewable Energy Partners LP (Æ) | | | 61,107 | | | | 1,712 | |
Emera, Inc. (Ñ) | | | 67,903 | | | | 2,403 | |
Enbridge, Inc. (Ñ) | | | 1,031,377 | | | | 43,210 | |
Keyera Corp. (Ñ) | | | 255,420 | | | | 10,443 | |
Pembina Pipeline Corp. (Ñ) | | | 45,150 | | | | 1,366 | |
TransCanada Corp. (Ñ) | | | 516,402 | | | | 22,718 | |
Veresen, Inc. | | | 44,897 | | | | 686 | |
Westshore Terminals Investment Corp. | | | 172,348 | | | | 4,308 | |
| | | | | | | | |
| | | | | | | 92,615 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Chile - 1.0% | | | | | | | | |
Aguas Andinas SA Class A | | | 859,658 | | | | 569 | |
E.CL SA | | | 2,195,181 | | | | 5,882 | |
Empresa Nacional de Electricidad SA - ADR (Ñ) | | | 43,374 | | | | 2,369 | |
Inversiones Aguas Metropolitanas SA | | | 16,562 | | | | 29 | |
| | | | | | | | |
| | | | | | | 8,849 | |
| | | | | | | | |
| | |
| China - 3.4% | | | | | | | | |
Beijing Capital International Airport Co., Ltd. Class H | | | 3,974,000 | | | | 2,597 | |
COSCO Pacific, Ltd. | | | 8,155,207 | | | | 11,878 | |
Dalian Port PDA Co., Ltd. Class H | | | 12,494,000 | | | | 2,850 | |
ENN Energy Holdings, Ltd. | | | 363,994 | | | | 1,281 | |
Jiangsu Expressway Co., Ltd. Class H | | | 8,673,773 | | | | 8,552 | |
Towngas China Co., Ltd. | | | 1,288,648 | | | | 913 | |
Zhejiang Expressway Co., Ltd. Class H | | | 3,566,000 | | | | 2,565 | |
| | | | | | | | |
| | | | | | | 30,636 | |
| | | | | | | | |
| | |
| Czech Republic - 0.1% | | | | | | | | |
CEZ AS | | | 26,899 | | | | 1,085 | |
| | | | | | | | |
| | |
| Finland - 0.1% | | | | | | | | |
Fortum OYJ | | | 45,171 | | | | 972 | |
| | | | | | | | |
| | |
| France - 6.4% | | | | | | | | |
Aeroports de Paris | | | 174,626 | | | | 14,692 | |
Eutelsat Communications SA | | | 89,488 | | | | 3,185 | |
GDF Suez (Ñ) | | | 746,875 | | | | 17,192 | |
Groupe Eurotunnel SA | | | 1,333,169 | | | | 11,218 | |
Rubis | | | 75,456 | | | | 4,104 | |
Veolia Environnement SA | | | 46,300 | | | | 678 | |
Vinci SA | | | 160,743 | | | | 7,447 | |
| | | | | | | | |
| | | | | | | 58,516 | |
| | | | | | | | |
| | |
| Germany - 4.4% | | | | | | | | |
E.ON AG | | | 827,250 | | | | 18,741 | |
Fraport AG Frankfurt Airport Services Worldwide (Ñ) | | | 232,973 | | | | 15,139 | |
Hamburger Hafen und Logistik AG (Ñ) | | | 192,354 | | | | 6,378 | |
| | | | | | | | |
| | | | | | | 40,258 | |
| | | | | | | | |
| | |
| Hong Kong - 5.2% | | | | | | | | |
Beijing Enterprises Holdings, Ltd. | | | 1,966,887 | | | | 11,002 | |
Cheung Kong Infrastructure Holdings, Ltd. | | | 1,184,599 | | | | 7,031 | |
China Everbright International, Ltd. | | | 4,521,783 | | | | 2,145 | |
China Merchants Holdings International Co., Ltd. | | | 4,295,917 | | | | 13,898 | |
China Resources Power Holdings Co., Ltd. | | | 342,000 | | | | 624 | |
CLP Holdings, Ltd. | | | 100 | | | | 1 | |
Guangdong Investment, Ltd. | | | 3,144,924 | | | | 2,314 | |
Hong Kong & China Gas Co., Ltd. | | | 1,151,037 | | | | 2,943 | |
MTR Corp., Ltd. | | | 747,075 | | | | 2,658 | |
Power Assets Holdings, Ltd. | | | 616,399 | | | | 4,608 | |
| | | | | | | | |
| | | | | | | 47,224 | |
| | | | | | | | |
| | | | |
| | 380 | | | Russell Global Infrastructure Fund |
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Russell Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| India - 0.3% | | | | | | | | |
GAIL India, Ltd. - GDR | | | 36,899 | | | | 1,384 | |
Power Grid Corp. of India, Ltd. | | | 634,071 | | | | 1,338 | |
| | | | | | | | |
| | | | | | | 2,722 | |
| | | | | | | | |
| | |
| Italy - 4.0% | | | | | | | | |
Ansaldo STS SpA | | | 75,374 | | | | 666 | |
Atlantia SpA | | | 1,751,436 | | | | 26,545 | |
Autostrada Torino-Milano SpA (Ñ) | | | 188,020 | | | | 1,018 | |
Enel SpA | | | 619,949 | | | | 2,035 | |
Hera SpA | | | 786,117 | | | | 1,181 | |
Iren SpA - ADR | | | 508,884 | | | | 337 | |
Snam Rete Gas SpA | | | 397,559 | | | | 1,891 | |
Societa Iniziative Autostradali e Servizi SpA (Ñ) | | | 235,273 | | | | 1,473 | |
Terna Rete Elettrica Nazionale SpA | | | 366,732 | | | | 1,364 | |
| | | | | | | | |
| | | | | | | 36,510 | |
| | | | | | | | |
| | |
| Japan - 2.1% | | | | | | | | |
Japan Airport Terminal Co., Ltd. | | | 230,768 | | | | 3,168 | |
Kamigumi Co., Ltd. | | | 655,569 | | | | 5,280 | |
Kansai Electric Power Co., Inc. (The) | | | 60,700 | | | | 880 | |
Osaka Gas Co., Ltd. | | | 883,000 | | | | 3,572 | |
Tokyo Gas Co., Ltd. (Ñ) | | | 889,000 | | | | 4,298 | |
West Japan Railway Co. | | | 40,849 | | | | 1,681 | |
| | | | | | | | |
| | | | | | | 18,879 | |
| | | | | | | | |
| | |
| Luxembourg - 0.1% | | | | | | | | |
SES SA (Æ) | | | 23,330 | | | | 559 | |
| | | | | | | | |
| | |
| Marshall Islands - 0.1% | | | | | | | | |
Golar LNG Partners, LP | | | 28,825 | | | | 1,010 | |
| | | | | | | | |
| | |
| Mexico - 0.9% | | | | | | | | |
Grupo Aeroportuario del Pacifico SAB de CV - ADR | | | 34,255 | | | | 1,326 | |
Grupo Aeroportuario del Sureste SA de CV Class B | | | 56,220 | | | | 458 | |
Grupo Aeroportuario del Sureste SAB de CV - ADR (Ñ) | | | 24,213 | | | | 1,983 | |
OHL Mexico SAB de CV (Æ) | | | 2,656,293 | | | | 4,201 | |
| | | | | | | | |
| | | | | | | 7,968 | |
| | | | | | | | |
| | |
| Netherlands - 1.5% | | | | | | | | |
Koninklijke Vopak NV (Ñ) | | | 211,371 | | | | 13,624 | |
| | | | | | | | |
| | |
| New Zealand - 0.9% | | | | | | | | |
Auckland International Airport, Ltd. | | | 1,638,576 | | | | 3,390 | |
Infratil, Ltd. | | | 1,169,151 | | | | 1,812 | |
Port of Tauranga, Ltd. | | | 335,157 | | | | 3,152 | |
Vector, Ltd. | | | 56,043 | | | | 121 | |
| | | | | | | | |
| | | | | | | 8,475 | |
| | | | | | | | |
| | |
| Norway - 0.1% | | | | | | | | |
Hafslund ASA Class B | | | 101,855 | | | | 961 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| Philippines - 0.3% | | | | | | | | |
International Container Terminal Services, Inc. | | | 1,940,287 | | | | 3,125 | |
| | | | | | | | |
| | |
| Poland - 0.1% | | | | | | | | |
PGE SA | | | 160,671 | | | | 962 | |
| | | | | | | | |
| | |
| Portugal - 0.1% | | | | | | | | |
Brisa Auto-Estradas de Portugal SA (Ñ) | | | 293,312 | | | | 1,029 | |
| | | | | | | | |
| | |
| Singapore - 2.8% | | | | | | | | |
Cityspring Infrastructure Trust (Æ) | | | 3,742,013 | | | | 1,194 | |
ComfortDelGro Corp., Ltd. | | | 604,842 | | | | 748 | |
Hutchison Port Holdings Trust Class U | | | 14,404,413 | | | | 10,875 | |
Hyflux, Ltd. (Ñ) | | | 474,801 | | | | 551 | |
Parkway Life Real Estate Investment Trust (Æ)(ö) | | | 1,126,811 | | | | 1,684 | |
SATS, Ltd. (Ñ) | | | 422,189 | | | | 890 | |
Singapore Post, Ltd. (Ñ) | | | 4,358,267 | | | | 3,575 | |
Singapore Telecommunications, Ltd. | | | 826,447 | | | | 2,077 | |
SMRT Corp., Ltd. (Ñ) | | | 2,498,102 | | | | 3,391 | |
| | | | | | | | |
| | | | | | | 24,985 | |
| | | | | | | | |
| | |
| Spain - 4.7% | | | | | | | | |
Abertis Infraestructuras SA (Ñ) | | | 1,701,719 | | | | 26,333 | |
Enagas SA | | | 220,306 | | | | 3,871 | |
Ferrovial SA | | | 1,155,439 | | | | 12,866 | |
| | | | | | | | |
| | | | | | | 43,070 | |
| | | | | | | | |
| | |
| Switzerland - 1.7% | | | | | | | | |
Flughafen Zuerich AG | | | 40,668 | | | | 15,144 | |
| | | | | | | | |
| | |
| United Kingdom - 6.1% | | | | | | | | |
BBA Aviation PLC | | | 613,898 | | | | 1,968 | |
Centrica PLC | | | 1,127,079 | | | | 5,614 | |
National Grid PLC | | | 1,510,330 | | | | 16,312 | |
National Grid PLC - ADR (Ñ) | | | 210,920 | | | | 11,409 | |
Scottish & Southern Energy PLC | | | 214,374 | | | | 4,596 | |
Severn Trent PLC Class H | | | 302,280 | | | | 8,291 | |
Stagecoach Group PLC | | | 885,091 | | | | 3,562 | |
United Utilities Group PLC | | | 414,921 | | | | 4,165 | |
| | | | | | | | |
| | | | | | | 55,917 | |
| | | | | | | | |
| | |
| United States - 25.0% | | | | | | | | |
American Electric Power Co., Inc. | | | 195,600 | | | | 7,597 | |
American States Water Co. | | | 528 | | | | 19 | |
American Tower Corp. Class A (ö) | | | 274,909 | | | | 18,029 | |
American Water Works Co., Inc. | | | 179,917 | | | | 6,160 | |
Aqua America, Inc. (Ñ) | | | 47,522 | | | | 1,079 | |
Atmos Energy Corp. | | | 44,785 | | | | 1,459 | |
Boardwalk Pipeline Partners, LP (Ñ) | | | 2,458 | | | | 68 | |
California Water Service Group | | | 29,682 | | | | 538 | |
CenterPoint Energy, Inc. | | | 32,200 | | | | 651 | |
Chesapeake Utilities Corp. | | | 15,386 | | | | 646 | |
Corrections Corp. of America | | | 161,418 | | | | 4,663 | |
Covanta Holding Corp. | | | 16,593 | | | | 266 | |
| | |
| Russell Global Infrastructure Fund | | 381 |
Russell Investment Company
Russell Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Crown Castle International Corp. (Æ) | | | 32,100 | | | | 1,817 | |
Dominion Resources, Inc. | | | 88,736 | | | | 4,631 | |
Duke Energy Corp. | | | 134,800 | | | | 2,889 | |
Edison International | | | 50,600 | | | | 2,227 | |
El Paso LLC | | | 447,213 | | | | 13,269 | |
El Paso Pipeline Partners, LP | | | 43,448 | | | | 1,472 | |
Enbridge Energy Partners, LP Class A | | | 43,600 | | | | 1,347 | |
Enterprise Products Partners, LP | | | 64,563 | | | | 3,328 | |
Exelon Corp. | | | 154,200 | | | | 6,015 | |
FirstEnergy Corp. | | | 107,900 | | | | 5,052 | |
ITC Holdings Corp. | | | 21,191 | | | | 1,641 | |
Kinder Morgan, Inc. (Ñ) | | | 66,842 | | | | 2,400 | |
Magellan Midstream Partners, LP | | | 35,300 | | | | 2,500 | |
MarkWest Energy Partners, LP | | | 14,550 | | | | 875 | |
Middlesex Water Co. | | | 22,114 | | | | 410 | |
NextEra Energy, Inc. | | | 203,926 | | | | 13,123 | |
NiSource, Inc. (Ñ) | | | 191,787 | | | | 4,728 | |
OGE Energy Corp. | | | 140,132 | | | | 7,561 | |
Oiltanking Partners, LP | | | 29,576 | | | | 866 | |
ONEOK, Inc. (Ñ) | | | 14,598 | | | | 1,254 | |
Pepco Holdings, Inc. | | | 339,580 | | | | 6,425 | |
PG&E Corp. | | | 306,949 | | | | 13,561 | |
Piedmont Natural Gas Co., Inc. (Ñ) | | | 54,356 | | | | 1,657 | |
Pinnacle West Capital Corp. | | | 19,381 | | | | 937 | |
PPL Corp. | | | 63,982 | | | | 1,750 | |
Public Service Enterprise Group, Inc. | | | 66,900 | | | | 2,084 | |
Questar Corp. | | | 406,515 | | | | 8,029 | |
Rose Rock Midstream, LP | | | 22,350 | | | | 541 | |
Sempra Energy | | | 16,315 | | | | 1,056 | |
South Jersey Industries, Inc. | | | 28,460 | | | | 1,402 | |
Southern Co. | | | 233,218 | | | | 10,714 | |
Spectra Energy Corp. | | | 629,816 | | | | 19,360 | |
Standard Parking Corp. (Æ) | | | 48,635 | | | | 927 | |
Targa Resources Corp. | | | 51,700 | | | | 2,486 | |
Tesoro Logistics, LP | | | 33,896 | | | | 1,198 | |
UIL Holdings Corp. | | | 28,064 | | | | 965 | |
Unitil Corp. | | | 22,974 | | | | 608 | |
Waste Connections, Inc. | | | 216,140 | | | | 6,966 | |
Westar Energy, Inc. | | | 12,405 | | | | 356 | |
WGL Holdings, Inc. | | | 32,573 | | | | 1,306 | |
Williams Cos., Inc. (The) | | | 734,683 | | | | 25,001 | |
Wisconsin Energy Corp. | | | 43,200 | | | | 1,592 | |
| | | | | | | | |
| | | | | | | 227,501 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $805,553) | | | | | | | 864,029 | |
| | | | | | | | |
A portion of the portfolio has been fair valued as of period end.
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
|
| Short-Term Investments - 4.0% | |
| United States - 4.0% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 36,683,087 | (¥) | | | 36,683 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $36,683) | | | | | | | 36,683 | |
| | | | | | | | |
| | |
| Other Securities - 6.3% | | | | | | | | |
Russell U.S. Cash Collateral Fund (×) | | | 57,728,393 | (¥) | | | 57,728 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $57,728) | | | | | | | 57,728 | |
| | | | | | | | |
| |
Total Investments - 105.3%
(identified cost $899,964) | | | | 958,440 | |
| |
Other Assets and Liabilities,
Net - (5.3%) | | | | (48,536 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 909,904 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 382 | | | Russell Global Infrastructure Fund |
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Russell Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
Long Positions | | | | | | | | | | | | | | | | | | |
ASX SPI 200 Index Futures (Australia) | | | 30 | | | AUD | | | 3,298 | | | | 06/12 | | | | 90 | |
EURO STOXX 50 Index Futures (EMU) | | | 392 | | | EUR | | | 8,855 | | | | 06/12 | | | | (575 | ) |
FTSE 100 Index Futures (UK) | | | 29 | | | GBP | | | 1,657 | | | | 06/12 | | | | (40 | ) |
Hang Seng Index Futures (Hong Kong) | | | 18 | | | HKD | | | 18,846 | | | | 05/12 | | | | 49 | |
S&P 500 E-Mini Index Futures (CME) | | | 201 | | | USD | | | 14,006 | | | | 06/12 | | | | 146 | |
S&P TSE 60 Index Futures (Canada) | | | 29 | | | CAD | | | 4,051 | | | | 06/12 | | | | 8 | |
TOPIX Index Futures (Japan) | | | 15 | | | JPY | | | 120,375 | | | | 06/12 | | | | (50 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | | | | | | | (374 | ) |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Infrastructure Fund | | 383 |
Russell Investment Company
Russell Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Banco Citibank SA | | USD | | | 166 | | | BRL | | 312 | | | 05/02/12 | | | | (2 | ) |
Banco Citibank SA | | USD | | | 821 | | | BRL | | 1,549 | | | 05/02/12 | | | | (8 | ) |
Bank of Montreal | | USD | | | 487 | | | HKD | | 3,775 | | | 06/20/12 | | | | — | |
Barclays Bank PLC | | USD | | | 310 | | | AUD | | 300 | | | 06/20/12 | | | | 1 | |
Barclays Bank PLC | | USD | | | 302 | | | CAD | | 300 | | | 06/20/12 | | | | 1 | |
Barclays Bank PLC | | USD | | | 800 | | | EUR | | 600 | | | 06/20/12 | | | | (5 | ) |
Barclays Bank PLC | | USD | | | 320 | | | GBP | | 200 | | | 06/20/12 | | | | 4 | |
Barclays Bank PLC | | USD | | | 193 | | | HKD | | 1,500 | | | 06/20/12 | | | | — | |
Barclays Bank PLC | | USD | | | 122 | | | JPY | | 10,000 | | | 06/20/12 | | | | 3 | |
Citibank | | USD | | | 267 | | | EUR | | 200 | | | 06/20/12 | | | | (2 | ) |
Citibank | | USD | | | 394 | | | EUR | | 300 | | | 06/20/12 | | | | 3 | |
Citibank | | USD | | | 656 | | | EUR | | 500 | | | 06/20/12 | | | | 6 | |
Citibank | | USD | | | 123 | | | JPY | | 10,000 | | | 06/20/12 | | | | 2 | |
Citibank | | USD | | | 5 | | | PLN | | 17 | | | 05/04/12 | | | | — | |
Citibank | | CAD | | | 350 | | | USD | | 355 | | | 06/20/12 | | | | 2 | |
Citibank | | EUR | | | 150 | | | USD | | 199 | | | 06/20/12 | | | | — | |
Citibank | | GBP | | | 150 | | | USD | | 239 | | | 06/20/12 | | | | (5 | ) |
Citibank | | MXN | | | 1,368 | | | USD | | 105 | | | 05/04/12 | | | | — | |
Commonwealth Bank of Australia | | USD | | | 666 | | | AUD | | 645 | | | 06/20/12 | | | | 2 | |
Commonwealth Bank of Australia | | USD | | | 795 | | | CAD | | 791 | | | 06/20/12 | | | | 5 | |
Commonwealth Bank of Australia | | USD | | | 2,044 | | | EUR | | 1,566 | | | 06/20/12 | | | | 29 | |
Commonwealth Bank of Australia | | USD | | | 486 | | | GBP | | 310 | | | 06/20/12 | | | | 17 | |
Commonwealth Bank of Australia | | USD | | | 487 | | | HKD | | 3,775 | | | 06/20/12 | | | | — | |
Commonwealth Bank of Australia | | USD | | | 287 | | | JPY | | 23,996 | | | 06/20/12 | | | | 14 | |
Credit Suisse First Boston | | USD | | | 1,015 | | | CZK | | 19,012 | | | 05/03/12 | | | | (6 | ) |
Credit Suisse First Boston | | USD | | | 69 | | | CZK | | 1,298 | | | 05/07/12 | | | | — | |
Credit Suisse First Boston | | CAD | | | 227 | | | USD | | 231 | | | 05/02/12 | | | | 2 | |
Credit Suisse First Boston | | HKD | | | 1,394 | | | USD | | 180 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | USD | | | 666 | | | AUD | | 645 | | | 06/20/12 | | | | 3 | |
Deutsche Bank AG | | USD | | | 796 | | | CAD | | 791 | | | 06/20/12 | | | | 4 | |
Deutsche Bank AG | | USD | | | 2,044 | | | EUR | | 1,566 | | | 06/20/12 | | | | 29 | |
Deutsche Bank AG | | USD | | | 486 | | | GBP | | 310 | | | 06/20/12 | | | | 17 | |
Deutsche Bank AG | | USD | | | 487 | | | HKD | | 3,775 | | | 06/20/12 | | | | — | |
Deutsche Bank AG | | USD | | | 287 | | | JPY | | 23,996 | | | 06/20/12 | | | | 14 | |
Deutsche Bank AG | | USD | | | 64 | | | SGD | | 79 | | | 05/04/12 | | | | — | |
Deutsche Bank AG | | EUR | | | 18 | | | USD | | 24 | | | 05/03/12 | | | | — | |
Deutsche Bank AG | | EUR | | | 1,201 | | | USD | | 1,590 | | | 05/04/12 | | | | — | |
HSBC Bank PLC | | USD | | | 666 | | | AUD | | 645 | | | 06/20/12 | | | | 3 | |
HSBC Bank PLC | | USD | | | 796 | | | CAD | | 791 | | | 06/20/12 | | | | 4 | |
HSBC Bank PLC | | USD | | | 2,044 | | | EUR | | 1,566 | | | 06/20/12 | | | | 29 | |
HSBC Bank PLC | | USD | | | 486 | | | GBP | | 310 | | | 06/20/12 | | | | 17 | |
HSBC Bank PLC | | USD | | | 486 | | | HKD | | 3,775 | | | 06/20/12 | | | | — | |
HSBC Bank PLC | | USD | | | 287 | | | JPY | | 23,996 | | | 06/20/12 | | | | 14 | |
JPMorgan Chase Bank | | USD | | | 666 | | | AUD | | 645 | | | 06/20/12 | | | | 2 | |
JPMorgan Chase Bank | | USD | | | 796 | | | CAD | | 791 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 2,044 | | | EUR | | 1,566 | | | 06/20/12 | | | | 29 | |
JPMorgan Chase Bank | | USD | | | 486 | | | GBP | | 310 | | | 06/20/12 | | | | 17 | |
JPMorgan Chase Bank | | USD | | | 287 | | | JPY | | 23,996 | | | 06/20/12 | | | | 14 | |
JPMorgan Chase Bank | | AUD | | | 50 | | | USD | | 51 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | CAD | | | 50 | | | USD | | 50 | | | 06/20/12 | | | | (1 | ) |
JPMorgan Chase Bank | | JPY | | | 5,000 | | | USD | | 60 | | | 06/20/12 | | | | (2 | ) |
Mellon Bank | | USD | | | 101 | | | CAD | | 100 | | | 06/20/12 | | | | — | |
Mellon Bank | | USD | | | 486 | | | HKD | | 3,775 | | | 06/20/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 384 | | | Russell Global Infrastructure Fund |
Russell Investment Company
Russell Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Morgan Stanley & Co., Inc. | | USD | | | 138 | | | EUR | | 104 | | | 05/01/12 | | | | (1 | ) |
Royal Bank of Canada | | USD | | | 666 | | | AUD | | 645 | | | 06/20/12 | | | | 3 | |
Royal Bank of Canada | | USD | | | 795 | | | CAD | | 791 | | | 06/20/12 | | | | 4 | |
Royal Bank of Canada | | USD | | | 2,044 | | | EUR | | 1,566 | | | 06/20/12 | | | | 29 | |
Royal Bank of Canada | | USD | | | 485 | | | GBP | | 310 | | | 06/20/12 | | | | 17 | |
Royal Bank of Canada | | USD | | | 287 | | | JPY | | 23,996 | | | 06/20/12 | | | | 14 | |
Royal Bank of Scotland PLC | | CAD | | | 25 | | | USD | | 25 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 258 | | | AUD | | 247 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 80 | | | AUD | | 76 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 207 | | | AUD | | 200 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 208 | | | AUD | | 200 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 308 | | | AUD | | 300 | | | 06/20/12 | | | | 3 | |
State Street Bank & Trust Co. | | USD | | | 515 | | | AUD | | 500 | | | 06/20/12 | | | | 4 | |
State Street Bank & Trust Co. | | USD | | | 204 | | | CAD | | 200 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 302 | | | CAD | | 300 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 305 | | | CAD | | 300 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 500 | | | CAD | | 500 | | | 06/20/12 | | | | 5 | |
State Street Bank & Trust Co. | | USD | | | 104 | | | EUR | | 79 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 263 | | | EUR | | 200 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 662 | | | EUR | | 500 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 662 | | | EUR | | 500 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 1,308 | | | EUR | | 1,000 | | | 06/20/12 | | | | 16 | |
State Street Bank & Trust Co. | | USD | | | 170 | | | GBP | | 105 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 81 | | | GBP | | 50 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 160 | | | GBP | | 100 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 162 | | | GBP | | 100 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 163 | | | GBP | | 100 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 475 | | | GBP | | 300 | | | 06/20/12 | | | | 12 | |
State Street Bank & Trust Co. | | USD | | | 215 | | | HKD | | 1,672 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 351 | | | HKD | | 2,722 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 64 | | | HKD | | 500 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 103 | | | HKD | | 800 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 129 | | | HKD | | 1,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 193 | | | HKD | | 1,500 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 387 | | | HKD | | 3,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 24 | | | JPY | | 1,893 | | | 05/07/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 62 | | | JPY | | 5,000 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 75 | | | JPY | | 6,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 124 | | | JPY | | 10,000 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 185 | | | JPY | | 15,000 | | | 06/20/12 | | | | 3 | |
State Street Bank & Trust Co. | | AUD | | | 9 | | | USD | | 10 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 50 | | | USD | | 51 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 85 | | | USD | | 88 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 250 | | | USD | | 257 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | AUD | | | 600 | | | USD | | 618 | | | 06/20/12 | | | | (4 | ) |
State Street Bank & Trust Co. | | AUD | | | 1,200 | | | USD | | 1,243 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | BRL | | | 16 | | | USD | | 8 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | BRL | | | 1,114 | | | USD | | 586 | | | 05/03/12 | | | | 2 | |
State Street Bank & Trust Co. | | CAD | | | 114 | | | USD | | 116 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 220 | | | USD | | 223 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 30 | | | USD | | 30 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | CAD | | | 50 | | | USD | | 50 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | CAD | | | 700 | | | USD | | 704 | | | 06/20/12 | | | | (4 | ) |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Infrastructure Fund | | 385 |
Russell Investment Company
Russell Global Infrastructure Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
State Street Bank & Trust Co. | | CAD | | | 1,200 | | | USD | | 1,205 | | | 06/20/12 | | | | (9 | ) |
State Street Bank & Trust Co. | | CLP | | | 33,436 | | | USD | | 69 | | | 04/30/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 23 | | | USD | | 31 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 671 | | | USD | | 888 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 1,249 | | | USD | | 1,656 | | | 05/03/12 | | | | 2 | |
State Street Bank & Trust Co. | | EUR | | | 100 | | | USD | | 133 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | EUR | | | 460 | | | USD | | 610 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | EUR | | | 900 | | | USD | | 1,190 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | EUR | | | 1,200 | | | USD | | 1,586 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | EUR | | | 2,100 | | | USD | | 2,771 | | | 06/20/12 | | | | (10 | ) |
State Street Bank & Trust Co. | | GBP | | | 88 | | | USD | | 143 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | GBP | | | 194 | | | USD | | 315 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | GBP | | | 60 | | | USD | | 95 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | GBP | | | 150 | | | USD | | 242 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | GBP | | | 300 | | | USD | | 483 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | GBP | | | 500 | | | USD | | 798 | | | 06/20/12 | | | | (13 | ) |
State Street Bank & Trust Co. | | HKD | | | 254 | | | USD | | 33 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 273 | | | USD | | 35 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 700 | | | USD | | 90 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 2,000 | | | USD | | 258 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 3,500 | | | USD | | 451 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 6,500 | | | USD | | 837 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | JPY | | | 6,000 | | | USD | | 73 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | JPY | | | 15,000 | | | USD | | 184 | | | 06/20/12 | | | | (4 | ) |
State Street Bank & Trust Co. | | JPY | | | 20,000 | | | USD | | 245 | | | 06/20/12 | | | | (5 | ) |
State Street Bank & Trust Co. | | JPY | | | 37,000 | | | USD | | 458 | | | 06/20/12 | | | | (6 | ) |
State Street Bank & Trust Co. | | NZD | | | 300 | | | USD | | 246 | | | 05/03/12 | | | | 1 | |
State Street Bank & Trust Co. | | PLN | | | 9 | | | USD | | 3 | | | 05/04/12 | | | | — | |
State Street Bank & Trust Co. | | SGD | | | 26 | | | USD | | 21 | | | 05/02/12 | | | | — | |
Westpac Banking Corp. | | USD | | | 666 | | | AUD | | 645 | | | 06/20/12 | | | | 2 | |
Westpac Banking Corp. | | USD | | | 795 | | | CAD | | 791 | | | 06/20/12 | | | | 5 | |
Westpac Banking Corp. | | USD | | | 2,044 | | | EUR | | 1,566 | | | 06/20/12 | | | | 29 | |
Westpac Banking Corp. | | USD | | | 486 | | | GBP | | 310 | | | 06/20/12 | | | | 17 | |
Westpac Banking Corp. | | USD | | | 486 | | | HKD | | 3,775 | | | 06/20/12 | | | | — | |
Westpac Banking Corp. | | USD | | | 287 | | | JPY | | 23,996 | | | 06/20/12 | | | | 14 | |
| | | | | | | | | | | | | | | | | | |
| | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | 376 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 386 | | | Russell Global Infrastructure Fund |
Russell Investment Company
Russell Global Infrastructure Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Australia | | $ | 87,123 | | | $ | — | | | $ | — | | | $ | 87,123 | | | | 9.6 | |
Austria | | | 988 | | | | — | | | | — | | | | 988 | | | | 0.1 | |
Belgium | | | 503 | | | | — | | | | — | | | | 503 | | | | 0.1 | |
Bermuda | | | 5,479 | | | | — | | | | — | | | | 5,479 | | | | 0.6 | |
Brazil | | | 27,340 | | | | — | | | | — | | | | 27,340 | | | | 3.0 | |
Canada | | | 90,903 | | | | — | | | | 1,712 | | | | 92,615 | | | | 10.2 | |
Chile | | | 8,849 | | | | — | | | | — | | | | 8,849 | | | | 1.0 | |
China | | | 30,636 | | | | — | | | | — | | | | 30,636 | | | | 3.4 | |
Czech Republic | | | 1,085 | | | | — | | | | — | | | | 1,085 | | | | 0.1 | |
Finland | | | 972 | | | | — | | | | — | | | | 972 | | | | 0.1 | |
France | | | 58,516 | | | | — | | | | — | | | | 58,516 | | | | 6.4 | |
Germany | | | 40,258 | | | | — | | | | — | | | | 40,258 | | | | 4.4 | |
Hong Kong | | | 47,224 | | | | — | | | | — | | | | 47,224 | | | | 5.2 | |
India | | | 2,722 | | | | — | | | | — | | | | 2,722 | | | | 0.3 | |
Italy | | | 36,510 | | | | — | | | | — | | | | 36,510 | | | | 4.0 | |
Japan | | | 18,879 | | | | — | | | | — | | | | 18,879 | | | | 2.1 | |
Luxembourg | | | 559 | | | | — | | | | — | | | | 559 | | | | 0.1 | |
Marshall Islands | | | 1,010 | | | | — | | | | — | | | | 1,010 | | | | 0.1 | |
Mexico | | | 7,968 | | | | — | | | | — | | | | 7,968 | | | | 0.9 | |
Netherlands | | | 13,624 | | | | — | | | | — | | | | 13,624 | | | | 1.5 | |
New Zealand | | | 8,475 | | | | — | | | | — | | | | 8,475 | | | | 0.9 | |
Norway | | | 961 | | | | — | | | | — | | | | 961 | | | | 0.1 | |
Philippines | | | 3,125 | | | | — | | | | — | | | | 3,125 | | | | 0.3 | |
Poland | | | 962 | | | | — | | | | — | | | | 962 | | | | 0.1 | |
Portugal | | | 1,029 | | | | — | | | | — | | | | 1,029 | | | | 0.1 | |
Singapore | | | 24,985 | | | | — | | | | — | | | | 24,985 | | | | 2.8 | |
Spain | | | 43,070 | | | | — | | | | — | | | | 43,070 | | | | 4.7 | |
Switzerland | | | 15,144 | | | | — | | | | — | | | | 15,144 | | | | 1.7 | |
United Kingdom | | | 55,917 | | | | — | | | | — | | | | 55,917 | | | | 6.1 | |
United States | | | 227,501 | | | | — | | | | — | | | | 227,501 | | | | 25.0 | |
Short-Term Investments | | | — | | | | 36,683 | | | | — | | | | 36,683 | | | | 4.0 | |
Other Securities | | | — | | | | 57,728 | | | | — | | | | 57,728 | | | | 6.3 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 862,317 | | | | 94,411 | | | | 1,712 | | | | 958,440 | | | | 105.3 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (5.3) | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | (374 | ) | | | — | | | | — | | | | (374 | ) | | | (— | )* |
Foreign Currency Exchange Contracts | | | (12 | ) | | | 388 | | | | — | | | | 376 | | | | — | * |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | (386 | ) | | $ | 388 | | | $ | — | | | $ | 2 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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) were used in determining a value for the period ended April 30, 2012 were less than 1% of net assets.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Infrastructure Fund | | 387 |
Russell Investment Company
Russell Global Infrastructure Fund
Fair Value of Derivative Instruments — April 30, 2012 (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 | | $ | — | | | $ | 484 | |
Daily variation margin on futures contracts* | | | 292 | | | | — | |
| | | | | | | | |
Total | | $ | 292 | | | $ | 484 | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 108 | |
Daily variation margin on futures contracts* | | | 665 | | | | — | |
| | | | | | | | |
Total | | $ | 665 | | | $ | 108 | |
| | | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | |
Futures contracts | | $ | 4,266 | | | $ | — | |
Foreign currency-related transactions | | | — | | | | (823 | ) |
| | | | | | | | |
Total | | $ | 4,266 | | | $ | (823 | ) |
| | | | | | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | |
Futures contracts | | $ | (2,928 | ) | | $ | — | |
Foreign currency-related transactions | | | — | | | | 285 | |
| | | | | | | | |
Total | | $ | (2,928 | ) | | $ | 285 | |
| | | | | | | | |
| * | 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.
| | | | |
| | 388 | | | Russell Global Infrastructure Fund |
Russell Investment Company
Russell Global Infrastructure Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 899,964 | |
Investments, at market**, *** | | | 958,440 | |
Cash (restricted) | | | 2,725 | |
Foreign currency holdings* | | | 364 | |
Unrealized appreciation on foreign currency exchange contracts | | | 484 | |
Receivables: | | | | |
Dividends and interest | | | 2,443 | |
Dividends from affiliated Russell money market funds | | | 5 | |
Investments sold | | | 9,361 | |
Fund shares sold | | | 1,858 | |
Foreign taxes recoverable | | | 234 | |
From affiliates | | | 1 | |
Daily variation margin on futures contracts | | | 92 | |
Prepaid expenses | | | 2 | |
| | | | |
Total assets | | | 976,009 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 6,225 | |
Fund shares redeemed | | | 917 | |
Accrued fees to affiliates | | | 784 | |
Other accrued expenses | | | 135 | |
Daily variation margin on futures contracts | | | 194 | |
Deferred tax liability | | | 14 | |
Unrealized depreciation on foreign currency exchange contracts | | | 108 | |
Payable upon return of securities loaned | | | 57,728 | |
| | | | |
Total liabilities | | | 66,105 | |
| | | | |
| | | | |
Net Assets | | $ | 909,904 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Infrastructure Fund | | 389 |
Russell Investment Company
Russell Global Infrastructure Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 1,983 | |
Accumulated net realized gain (loss) | | | (7,167 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 58,462 | |
Futures contracts | | | (374 | ) |
Foreign currency-related transactions | | | 380 | |
Shares of beneficial interest | | | 838 | |
Additional paid-in capital | | | 855,782 | |
| | | | |
Net Assets | | $ | 909,904 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.84 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.50 | |
Class A — Net assets | | $ | 4,737,056 | |
Class A — Shares outstanding ($.01 par value) | | | 437,105 | |
Net asset value per share: Class C(a) | | $ | 10.81 | |
Class C — Net assets | | $ | 4,563,751 | |
Class C — Shares outstanding ($.01 par value) | | | 422,208 | |
Net asset value per share: Class E(a) | | $ | 10.84 | |
Class E — Net assets | | $ | 16,499,631 | |
Class E — Shares outstanding ($.01 par value) | | | 1,522,125 | |
Net asset value per share: Class S(a) | | $ | 10.85 | |
Class S — Net assets | | $ | 533,869,262 | |
Class S — Shares outstanding ($.01 par value) | | | 49,195,270 | |
Net asset value per share: Class Y(a) | | $ | 10.86 | |
Class Y — Net assets | | $ | 350,234,641 | |
Class Y — Shares outstanding ($.01 par value) | | | 32,263,377 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 365 | |
** Securities on loan included in investments | | $ | 63,821 | |
*** Investments in affiliates, Russell U.S. Cash Management Fund and Russell U.S. Cash Collateral Fund | | $ | 94,411 | |
| (a) | 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.
| | | | |
| | 390 | | | Russell Global Infrastructure Fund |
Russell Investment Company
Russell Global Infrastructure Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 14,478 | |
Dividends from affiliated Russell money market funds | | | 26 | |
Interest | | | — | |
Securities lending income | | | 381 | |
Less foreign taxes withheld | | | (1,081 | ) |
| | | | |
Total investment income | | | 13,804 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 5,321 | |
Administrative fees | | | 213 | |
Custodian fees | | | 218 | |
Distribution fees - Class A | | | 5 | |
Distribution fees - Class C | | | 16 | |
Transfer agent fees - Class A | | | 4 | |
Transfer agent fees - Class C | | | 4 | |
Transfer agent fees - Class E | | | 14 | |
Transfer agent fees - Class S | | | 442 | |
Transfer agent fees - Class Y | | | 7 | |
Professional fees | | | 43 | |
Registration fees | | | 46 | |
Shareholder servicing fees - Class C | | | 5 | |
Shareholder servicing fees - Class E | | | 20 | |
Trustees’ fees | | | 11 | |
Printing fees | | | 80 | |
Miscellaneous | | | 17 | |
| | | | |
Expenses before reductions | | | 6,466 | |
Expense reductions | | | (1,499 | ) |
| | | | |
Net expenses | | | 4,967 | |
| | | | |
Net investment income (loss) | | | 8,837 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 2,576 | |
Futures contracts | | | 4,266 | |
Foreign currency-related transactions | | | (703 | ) |
| | | | |
Net realized gain (loss) | | | 6,139 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 55,223 | |
Futures contracts | | | (2,928 | ) |
Foreign currency-related transactions | | | 163 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 52,458 | |
| | | | |
Net realized and unrealized gain (loss) | | | 58,597 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 67,434 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Infrastructure Fund | | 391 |
Russell Investment Company
Russell Global Infrastructure Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 8,837 | | | $ | 19,413 | |
Net realized gain (loss) | | | 6,139 | | | | (10,414 | ) |
Net change in unrealized appreciation (depreciation) | | | 52,458 | | | | (8,933 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 67,434 | | | | 66 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (28 | ) | | | (79 | ) |
Class C | | | (14 | ) | | | (72 | ) |
Class E | | | (103 | ) | | | (287 | ) |
Class S | | | (3,748 | ) | | | (10,956 | ) |
Class Y | | | (2,876 | ) | | | (10,277 | ) |
From net realized gain | | | | | | | | |
Class A | | | (1 | ) | | | (6 | ) |
Class C | | | (2 | ) | | | (11 | ) |
Class E | | | (6 | ) | | | (7 | ) |
Class S | | | (167 | ) | | | (2,114 | ) |
Class Y | | | (119 | ) | | | (2,720 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (7,064 | ) | | | (26,529 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 24,786 | | | | 226,288 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 85,156 | | | | 199,825 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 824,748 | | | | 624,923 | |
| | | | | | | | |
End of period | | $ | 909,904 | | | $ | 824,748 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 1,983 | | | $ | (85 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 392 | | | Russell Global Infrastructure Fund |
(This page intentionally left blank)
Russell Investment Company
Russell Global Infrastructure Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | $
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | |
$
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.11 | | | | .09 | | | | .71 | | | | .80 | | | | (.07 | ) | | | — | (f) |
October 31, 2011 | | | 10.42 | | | | .25 | | | | (.22 | ) | | | .03 | | | | (.26 | ) | | | (.08 | ) |
October 31, 2010(7) | | | 10.00 | | | | — | (f) | | | .42 | | | | .42 | | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.09 | | | | .05 | | | | .71 | | | | .76 | | | | (.04 | ) | | | — | (f) |
October 31, 2011 | | | 10.42 | | | | .17 | | | | (.22 | ) | | | (.05 | ) | | | (.20 | ) | | | (.08 | ) |
October 31, 2010(7) | | | 10.00 | | | | (.01 | ) | | | .43 | | | | .42 | | | | — | | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.12 | | | | .09 | | | | .70 | | | | .79 | | | | (.07 | ) | | | — | (f) |
October 31, 2011 | | | 10.42 | | | | .28 | | | | (.24 | ) | | | .04 | | | | (.26 | ) | | | (.08 | ) |
October 31, 2010(7) | | | 10.00 | | | | — | (f) | | | .42 | | | | .42 | | | | — | | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.13 | | | | .10 | | | | .70 | | | | .80 | | | | (.08 | ) | | | — | (f) |
October 31, 2011 | | | 10.42 | | | | .26 | | | | (.19 | ) | | | .07 | | | | (.28 | ) | | | (.08 | ) |
October 31, 2010(7) | | | 10.00 | | | | — | (f) | | | .42 | | | | .42 | | | | — | | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.13 | | | | .11 | | | | .71 | | | | .82 | | | | (.09 | ) | | | — | (f) |
October 31, 2011 | | | 10.42 | | | | .27 | | | | (.19 | ) | | | .08 | | | | (.29 | ) | | | (.08 | ) |
October 31, 2010(7) | | | 10.00 | | | | — | (f) | | | .42 | | | | .42 | | | | — | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 394 | | | Russell Global Infrastructure Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.07 | ) | | | 10.84 | | | | 7.86 | | | | 4,737 | | | | 1.83 | | | | 1.47 | | | | 1.78 | | | | 63 | |
| | (.34 | ) | | | 10.11 | | | | .39 | | | | 4,312 | | | | 1.87 | | | | 1.50 | | | | 2.43 | | | | 145 | |
| | — | | | | 10.42 | | | | 4.20 | | | | 330 | | | | 2.05 | | | | 1.69 | | | | (.50 | ) | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.04 | ) | | | 10.81 | �� | | | 7.53 | | | | 4,564 | | | | 2.58 | | | | 2.22 | | | | 1.03 | | | | 63 | |
| | (.28 | ) | | | 10.09 | | | | (.48 | ) | | | 4,338 | | | | 2.62 | | | | 2.25 | | | | 1.62 | | | | 145 | |
| | — | | | | 10.42 | | | | 4.20 | | | | 760 | | | | 2.80 | | | | 2.44 | | | | (1.27 | ) | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.07 | ) | | | 10.84 | | | | 7.86 | | | | 16,499 | | | | 1.83 | | | | 1.47 | | | | 1.77 | | | | 63 | |
| | (.34 | ) | | | 10.12 | | | | .38 | | | | 14,990 | | | | 1.86 | | | | 1.50 | | | | 2.69 | | | | 145 | |
| | — | | | | 10.42 | | | | 4.20 | | | | 1,015 | | | | 2.05 | | | | 1.69 | | | | (.16 | ) | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.08 | ) | | | 10.85 | | | | 7.98 | | | | 533,869 | | | | 1.58 | | | | 1.22 | | | | 2.02 | | | | 63 | |
| | (.36 | ) | | | 10.13 | | | | .65 | | | | 460,800 | | | | 1.61 | | | | 1.25 | | | | 2.50 | | | | 145 | |
| | — | | | | 10.42 | | | | 4.20 | | | | 254,350 | | | | 1.80 | | | | 1.44 | | | | .07 | | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.09 | ) | | | 10.86 | | | | 8.16 | | | | 350,235 | | | | 1.40 | | | | 1.06 | | | | 2.19 | | | | 63 | |
| | (.37 | ) | | | 10.13 | | | | .79 | | | | 340,308 | | | | 1.43 | | | | 1.09 | | | | 2.55 | | | | 145 | |
| | — | | | | 10.42 | | | | 4.20 | | | | 368,468 | | | | 1.63 | | | | 1.29 | | | | (.17 | ) | | | 8 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Infrastructure Fund | | 395 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,102.99 | | | $ | 1,018.15 | |
Expenses Paid During Period* | | $ | 7.06 | | | $ | 6.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.35% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,098.90 | | | $ | 1,014.42 | |
Expenses Paid During Period* | | $ | 10.96 | | | $ | 10.52 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 2.10% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,102.88 | | | $ | 1,018.15 | |
Expenses Paid During Period* | | $ | 7.06 | | | $ | 6.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.35% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,104.35 | | | $ | 1,019.39 | |
Expenses Paid During Period* | | $ | 5.76 | | | $ | 5.52 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 1.10% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 396 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class Y | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,105.32 | | | $ | 1,020.29 | |
Expenses Paid During Period* | | $ | 4.82 | | | $ | 4.62 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Russell Global Real Estate Securities Fund | | 397 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
| Common Stocks - 97.8% | | | | | | | | |
| Australia - 7.8% | | | | | | | | |
BGP Holdings PLC (Å)(Æ)(ö) | | | 4,619,419 | | | | — | |
CFS Retail Property Trust (Ñ)(ö) | | | 6,635,189 | | | | 13,309 | |
Commonwealth Property Office Fund (Ñ)(ö) | | | 1,562,903 | | | | 1,694 | |
Dexus Property Group (ö) | | | 12,220,862 | | | | 11,906 | |
FKP Property Group (Ñ) | | | 3,629,057 | | | | 1,910 | |
Goodman Group (ö) | | | 1,134,893 | | | | 4,257 | |
GPT Group (ö) | | | 4,352,450 | | | | 14,830 | |
Investa Office Fund (ö) | | | 1,367,460 | | | | 3,890 | |
Mirvac Group (ö) | | | 3,606,088 | | | | 4,866 | |
Stockland (ö) | | | 5,291,363 | | | | 17,091 | |
Westfield Group (ö) | | | 4,469,758 | | | | 43,033 | |
Westfield Retail Trust (ö) | | | 4,273,688 | | | | 12,112 | |
| | | | | | | | |
| | | | | | | 128,898 | |
| | | | | | | | |
| | |
| Austria - 0.1% | | | | | | | | |
Conwert Immobilien Invest SE (Ñ) | | | 150,745 | | | | 1,796 | |
| | | | | | | | |
| | |
| Brazil - 0.7% | | | | | | | | |
BR Malls Participacoes SA | | | 219,121 | | | | 2,722 | |
BR Properties SA | | | 285,913 | | | | 3,547 | |
MRV Engenharia e Participacoes SA | | | 345,825 | | | | 2,012 | |
Multiplan Empreendimentos Imobiliarios SA | | | 99,350 | | | | 2,345 | |
PDG Realty SA Empreendimentos e Participacoes | | | 492,816 | | | | 1,163 | |
| | | | | | | | |
| | | | | | | 11,789 | |
| | | | | | | | |
| | |
| Canada - 4.2% | | | | | | | | |
Boardwalk Real Estate Investment Trust (ö) | | | 249,087 | | | | 14,829 | |
Brookfield Office Properties, Inc. (Ñ) | | | 1,009,593 | | | | 18,323 | |
Canadian Apartment Properties REIT (ö) | | | 147,200 | | | | 3,462 | |
Chartwell Seniors Housing Real Estate Investment Trust Class Trust Unit (ö) | | | 432,177 | | | | 4,078 | |
Chartwell Seniors Housing Real Estate Investment Trust (ö) | | | 59,400 | | | | 563 | |
Dundee Real Estate Investment Trust (ö) | | | 127,800 | | | | 4,771 | |
First Capital Realty, Inc. Class A (Ñ) | | | 88,200 | | | | 1,641 | |
H&R Real Estate Investment Trust (ö) | | | 160,850 | | | | 3,973 | |
Primaris Retail Real Estate Investment Trust Class Common Subscription
Recei (ö) | | | 175,461 | | | | 4,115 | |
RioCan Real Estate Investment Trust Class Trust Unit (ö) | | | 515,118 | | | | 14,152 | |
| | | | | | | | |
| | | | | | | 69,907 | |
| | | | | | | | |
| | |
| China - 0.9% | | | | | | | | |
China Overseas Land & Investment,
Ltd. (Ñ) | | | 3,693,290 | | | | 8,007 | |
China Resources Land, Ltd. (Ñ) | | | 3,620,616 | | | | 6,972 | |
| | | | | | | | |
| | | | | | | 14,979 | |
| | | | | | | | |
| | |
| Finland - 0.2% | | | | | | | | |
Citycon OYJ | | | 418,000 | | | | 1,383 | |
Sponda OYJ (Ñ) | | | 484,835 | | | | 1,945 | |
| | | | | | | | |
| | | | | | | 3,328 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| France - 3.7% | | | | | | | | |
Gecina SA (ö) | | | 84,605 | | | | 7,843 | |
ICADE (ö) | | | 53,802 | | | | 4,539 | |
Klepierre - GDR (Ñ)(ö) | | | 203,111 | | | | 6,431 | |
Mercialys SA (ö) | | | 61,235 | | | | 1,224 | |
Societe Immobiliere de Location pour l’Industrie et le Commerce (Ñ)(ö) | | | 28,543 | | | | 3,012 | |
Unibail-Rodamco SE (ö) | | | 204,692 | | | | 38,258 | |
| | | | | | | | |
| | | | | | | 61,307 | |
| | | | | | | | |
| | |
| Germany - 0.9% | | | | | | | | |
Deutsche Euroshop AG | | | 25,723 | | | | 936 | |
Deutsche Wohnen AG | | | 664,517 | | | | 9,768 | |
GSW Immobilien AG (Æ)(Ñ) | | | 143,611 | | | | 4,780 | |
| | | | | | | | |
| | | | | | | 15,484 | |
| | | | | | | | |
| | |
| Hong Kong - 12.9% | | | | | | | | |
Agile Property Holdings, Ltd. (Ñ) | | | 5,397,565 | | | | 7,054 | |
Country Garden Holdings Co., Ltd. (Ñ) | | | 18,058,797 | | | | 7,844 | |
Guangzhou R&F Properties Co., Ltd. | | | 200,000 | | | | 267 | |
Hang Lung Properties, Ltd. - ADR | | | 6,688,745 | | | | 24,742 | |
Henderson Land Development Co., Ltd. | | | 2,461,926 | | | | 14,025 | |
Hongkong Land Holdings, Ltd. (Ñ) | | | 4,917,980 | | | | 30,541 | |
Hysan Development Co., Ltd. | | | 2,116,693 | | | | 9,589 | |
Kerry Properties, Ltd. | | | 3,061,218 | | | | 13,987 | |
Link REIT (The) (Ñ)(ö) | | | 2,498,846 | | | | 10,403 | |
New World Development Co., Ltd. | | | 821,528 | | | | 1,024 | |
Orient-Express Hotels, Ltd. Class A (Æ) | | | 345,796 | | | | 3,697 | |
Shangri-La Asia, Ltd. (Ñ) | | | 1,248,000 | | | | 2,651 | |
Shimao Property Holdings, Ltd. (Ñ) | | | 6,201,053 | | | | 8,200 | |
Sino Land Co., Ltd. (Ñ) | | | 7,096,286 | | | | 12,256 | |
Sun Hung Kai Properties, Ltd. (Ñ) | | | 3,984,435 | | | | 48,068 | |
Wharf Holdings, Ltd. | | | 2,810,424 | | | | 16,771 | |
Wheelock & Co., Ltd. | | | 1,014,360 | | | | 3,425 | |
| | | | | | | | |
| | | | | | | 214,544 | |
| | | | | | | | |
| | |
| India - 0.1% | | | | | | | | |
Phoenix Mills, Ltd. | | | 457,705 | | | | 1,822 | |
| | | | | | | | |
| | |
| Indonesia - 0.1% | | | | | | | | |
Ciputra Development Tbk PT | | | 14,531,000 | | | | 1,202 | |
| | | | | | | | |
| | |
| Italy - 0.1% | | | | | | | | |
Beni Stabili SpA (ö) | | | 2,659,393 | | | | 1,475 | |
| | | | | | | | |
| | |
| Japan - 8.2% | | | | | | | | |
Advance Residence Investment Corp. Class A (ö) | | | 1,282 | | | | 2,479 | |
Aeon Mall Co., Ltd. | | | 135,070 | | | | 3,013 | |
Japan Real Estate Investment Corp. Class A (Ñ)(ö) | | | 443 | | | | 3,928 | |
Kenedix Realty Investment Corp. Class A (Ñ)(ö) | | | 988 | | | | 3,453 | |
Mitsubishi Estate Co., Ltd. | | | 1,900,943 | | | | 33,905 | |
Mitsui Fudosan Co., Ltd. | | | 1,853,552 | | | | 34,290 | |
Mori Hills REIT Investment Corp. Class A (ö) | | | 172 | | | | 719 | |
| | | | |
| | 398 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Nippon Accommodations Fund, Inc. Class A (ö) | | | 306 | | | | 2,027 | |
Nippon Building Fund, Inc. Class A (Ñ)(ö) | | | 1,457 | | | | 13,888 | |
Nomura Real Estate Holdings, Inc. | | | 351,523 | | | | 6,195 | |
Nomura Real Estate Office Fund, Inc. Class A (ö) | | | 294 | | | | 1,710 | |
NTT Urban Development Corp. | | | 1,119 | | | | 865 | |
Sumitomo Realty & Development Co., Ltd. | | | 793,260 | | | | 19,116 | |
Tokyu Land Corp. | | | 508,000 | | | | 2,469 | |
United Urban Investment Corp. Class A (ö) | | | 6,611 | | | | 7,808 | |
| | | | | | | | |
| | | | | | | 135,865 | |
| | | | | | | | |
| Netherlands - 0.9% | | | | | | | | |
Corio NV (ö) | | | 202,066 | | | | 9,043 | |
Eurocommercial Properties NV (ö) | | | 149,784 | | | | 5,250 | |
Vastned Retail NV (ö) | | | 18,311 | | | | 900 | |
| | | | | | | | |
| | | | | | | 15,193 | |
| | | | | | | | |
| Norway - 0.3% | | | | | | | | |
Norwegian Property ASA (Ñ) | | | 3,612,876 | | | | 5,366 | |
| | | | | | | | |
| Philippines - 0.5% | | | | | | | | |
Ayala Land, Inc. | | | 4,006,800 | | | | 2,036 | |
SM Prime Holdings, Inc. | | | 16,180,618 | | | | 6,400 | |
| | | | | | | | |
| | | | | | | 8,436 | |
| | | | | | | | |
| Singapore - 4.2% | | | | | | | | |
Ascendas Real Estate Investment Trust (ö) | | | 1,467,000 | | | | 2,466 | |
CapitaCommercial Trust (Æ)(Ñ)(ö) | | | 7,684,000 | | | | 8,010 | |
CapitaLand, Ltd. | | | 7,190,380 | | | | 17,083 | |
CapitaMall Trust Class A (ö) | | | 5,234,425 | | | | 7,614 | |
CapitaMalls Asia, Ltd. | | | 4,099,000 | | | | 5,101 | |
City Developments, Ltd. (Ñ) | | | 199,000 | | | | 1,631 | |
Global Logistic Properties, Ltd. (Æ) | | | 8,011,427 | | | | 13,336 | |
Keppel Land, Ltd. (Ñ) | | | 1,406,654 | | | | 3,603 | |
Mapletree Industrial Trust (ö) | | | 3,845,057 | | | | 3,511 | |
Perennial China Retail Trust (Æ)(ö) | | | 7,132,370 | | | | 2,968 | |
Suntec Real Estate Investment Trust (Æ)(Ñ)(ö) | | | 4,063,670 | | | | 4,302 | |
| | | | | | | | |
| | | | | | | 69,625 | |
| | | | | | | | |
| Sweden - 1.2% | | | | | | | | |
Castellum AB | | | 539,659 | | | | 6,829 | |
Fabege AB | | | 973,091 | | | | 8,223 | |
Hufvudstaden AB Class A | | | 250,200 | | | | 2,689 | |
Wihlborgs Fastigheter AB | | | 190,842 | | | | 2,648 | |
| | | | | | | | |
| | | | | | | 20,389 | |
| | | | | | | | |
| Switzerland - 0.5% | | | | | | | | |
PSP Swiss Property AG (Æ) | | | 48,457 | | | | 4,351 | |
Swiss Prime Site AG Class A (Æ) | | | 41,681 | | | | 3,479 | |
| | | | | | | | |
| | | | | | | 7,830 | |
| | | | | | | | |
| United Kingdom - 5.3% | | | | | | | | |
Big Yellow Group PLC (ö) | | | 325,057 | | | | 1,564 | |
British Land Co. PLC (ö) | | | 2,554,092 | | �� | | 20,286 | |
Capital & Counties Properties PLC | | | 446,000 | | | | 1,440 | |
Capital Shopping Centres Group PLC Class H (ö) | | | 159,700 | | | | 842 | |
Derwent London PLC (ö) | | | 441,506 | | | | 12,482 | |
Great Portland Estates PLC (ö) | | | 699,937 | | | | 4,090 | |
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
Hammerson PLC (ö) | | | 2,609,455 | | | | 17,685 | |
Land Securities Group PLC (ö) | | | 1,805,761 | | | | 21,320 | |
Metric Property Investments PLC (ö) | | | 599,870 | | | | 871 | |
Segro PLC (ö) | | | 413,727 | | | | 1,484 | |
Shaftesbury PLC (ö) | | | 413,098 | | | | 3,429 | |
Unite Group PLC | | | 843,521 | | | | 2,673 | |
| | | | | | | | |
| | | | | | | 88,166 | |
| | | | | | | | |
| United States - 45.0% | | | | | | | | |
Acadia Realty Trust (ö) | | | 139,784 | | | | 3,240 | |
Alexandria Real Estate Equities, Inc. (ö) | | | 246,995 | | | | 18,505 | |
American Assets Trust, Inc. (ö) | | | 228,012 | | | | 5,361 | |
American Campus Communities, Inc. (ö) | | | 35,500 | | | | 1,578 | |
Apartment Investment & Management Co. Class A (ö) | | | 270,069 | | | | 7,332 | |
AvalonBay Communities, Inc. (ö) | | | 262,029 | | | | 38,099 | |
BioMed Realty Trust, Inc. Class A (ö) | | | 212,300 | | | | 4,208 | |
Boston Properties, Inc. (ö) | | | 296,116 | | | | 32,055 | |
Brandywine Realty Trust (ö) | | | 331,821 | | | | 3,935 | |
Camden Property Trust (ö) | | | 86,400 | | | | 5,847 | |
Colonial Properties Trust (ö) | | | 123,894 | | | | 2,771 | |
Coresite Realty Corp. Class A (ö) | | | 51,600 | | | | 1,285 | |
Corporate Office Properties Trust (ö) | | | 50,587 | | | | 1,191 | |
CubeSmart Class A (ö) | | | 410,680 | | | | 5,158 | |
DCT Industrial Trust, Inc. (ö) | | | 782,970 | | | | 4,643 | |
DDR Corp. (Ñ)(ö) | | | 737,566 | | | | 10,916 | |
DiamondRock Hospitality Co. (ö) | | | 285,300 | | | | 3,033 | |
Digital Realty Trust, Inc. (Ñ)(ö) | | | 91,112 | | | | 6,842 | |
Douglas Emmett, Inc. (ö) | | | 219,290 | | | | 5,096 | |
Duke Realty Corp. (ö) | | | 495,976 | | | | 7,350 | |
DuPont Fabros Technology, Inc. (Ñ)(ö) | | | 353,850 | | | | 9,607 | |
Education Realty Trust, Inc. Class A (ö) | | | 356,759 | | | | 4,021 | |
Entertainment Properties Trust (ö) | | | 86,700 | | | | 4,161 | |
Equity Lifestyle Properties, Inc. Class A (ö) | | | 104,409 | | | | 7,302 | |
Equity Residential (ö) | | | 704,654 | | | | 43,294 | |
Essex Property Trust, Inc. (ö) | | | 100,658 | | | | 15,901 | |
Extra Space Storage, Inc. (ö) | | | 360,993 | | | | 10,956 | |
Federal Realty Investment Trust (ö) | | | 71,200 | | | | 7,167 | |
First Industrial Realty Trust, Inc. (Æ)(ö) | | | 265,996 | | | | 3,282 | |
First Potomac Realty Trust (ö) | | | 249,600 | | | | 3,105 | |
Forest City Enterprises, Inc. Class A (Æ) | | | 165,500 | | | | 2,640 | |
General Growth Properties, Inc. (ö) | | | 1,100,884 | | | | 19,596 | |
HCP, Inc. (ö) | | | 572,024 | | | | 23,710 | |
Health Care REIT, Inc. (ö) | | | 114,355 | | | | 6,479 | |
Healthcare Realty Trust, Inc. (ö) | | | 186,385 | | | | 4,004 | |
Hersha Hospitality Trust Class A (ö) | | | 440,587 | | | | 2,533 | |
Host Hotels & Resorts, Inc. (ö) | | | 1,810,300 | | | | 30,123 | |
Hyatt Hotels Corp. Class A (Æ) | | | 145,528 | | | | 6,262 | |
Kilroy Realty Corp. (ö) | | | 451,329 | | | | 21,416 | |
Kimco Realty Corp. (ö) | | | 320,940 | | | | 6,230 | |
Kite Realty Group Trust (ö) | | | 119,100 | | | | 609 | |
Liberty Property Trust (ö) | | | 268,056 | | | | 9,771 | |
Macerich Co. (The) (ö) | | | 273,628 | | | | 16,847 | |
National Retail Properties, Inc. (ö) | | | 80,300 | | | | 2,199 | |
Omega Healthcare Investors, Inc. (ö) | | | 210,900 | | | | 4,515 | |
Pebblebrook Hotel Trust (ö) | | | 229,903 | | | | 5,536 | |
Piedmont Office Realty Trust, Inc. Class A (ö) | | | 98,700 | | | | 1,751 | |
| | |
| Russell Global Real Estate Securities Fund | | 399 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Market
Value
$ | |
| | | | | | | | |
Post Properties, Inc. (ö) | | | 32,300 | | | | 1,573 | |
Prologis, Inc. (ö) | | | 1,207,820 | | | | 43,216 | |
Public Storage (ö) | | | 244,813 | | | | 35,072 | |
Regency Centers Corp. (ö) | | | 324,406 | | | | 14,585 | |
Retail Opportunity Investments
Corp. (Ñ)(ö) | | | 400,810 | | | | 4,870 | |
Retail Properties of America, Inc.
Class A (ö) | | | 160,900 | | | | 1,456 | |
RLJ Lodging Trust (ö) | | | 119,400 | | | | 2,242 | |
Select Income REIT (Æ)(ö) | | | 38,300 | | | | 876 | |
Simon Property Group, Inc. (ö) | | | 614,399 | | | | 95,600 | |
SL Green Realty Corp. (ö) | | | 180,352 | | | | 14,868 | |
Sovran Self Storage, Inc. (ö) | | | 77,420 | | | | 4,080 | |
Starwood Hotels & Resorts Worldwide,
Inc. (ö) | | | 66,800 | | | | 3,955 | |
Strategic Hotels & Resorts, Inc. (Æ)(ö) | | | 421,941 | | | | 2,873 | |
Sunstone Hotel Investors, Inc. (Æ)(ö) | | | 156,076 | | | | 1,592 | |
Tanger Factory Outlet Centers (ö) | | | 139,833 | | | | 4,380 | |
Taubman Centers, Inc. (ö) | | | 73,036 | | | | 5,637 | |
UDR, Inc. (ö) | | | 259,047 | | | | 6,821 | |
Ventas, Inc. (ö) | | | 590,135 | | | | 34,694 | |
Vornado Realty Trust (ö) | | | 288,084 | | | | 24,729 | |
Weingarten Realty Investors (ö) | | | 177,952 | | | | 4,726 | |
| | | | | | | | |
| | | | | | | 749,307 | |
| | | | | | | | |
| | |
| Total Common Stocks (cost $1,308,666) | | | | | | | 1,626,708 | |
| | | | | | | | |
| | |
| Warrants & Rights - 0.0% | | | | | | | | |
| Germany - 0.0% | | | | | | | | |
GSW Immobilien AG
Rights 2012 (Æ) | | | 143,608 | | | | 169 | |
| | | | | | | | |
| | |
Total Warrants & Rights
(cost $—) | | | | | | | 169 | |
| | | | | | | | |
| | |
| Short-Term Investments - 1.7% | | | | | | | | |
| United States - 1.7% | | | | | | | | |
Russell U.S. Cash Management Fund | | | 28,955,443 | (¥) | | | 28,955 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $28,955) | | | | | | | 28,955 | |
| | | | | | | | |
| | |
| Other Securities - 4.9% | | | | | | | | |
Russell Investment Company Liquidating Trust (×) | | | 3,385,876 | (¥) | | | 3,448 | |
Russell U.S. Cash Collateral Fund (×) | | | 77,249,017 | (¥) | | | 77,249 | |
| | | | | | | | |
| | |
Total Other Securities
(cost $80,635) | | | | | | | 80,697 | |
| | | | | | | | |
| | |
Total Investments - 104.4%
(identified cost $1,418,256) | | | | | | | 1,736,529 | |
| | |
Other Assets and Liabilities,
Net - (4.4%) | | | | | | | (72,753 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,663,776 | |
| | | | | | | | |
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.
| | | | |
| | 400 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands (except contract amounts)
| | | | | | | | | | | | | | | | |
| Futures Contracts | | Number of
Contracts | | | Notional
Amount | | Expiration
Date | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | |
| Long Positions | | | | | | | | | | | | | | | | |
ASX SPI 200 Index Futures (Australia) | | | 18 | | | | AUD | | | 1,979 | | 06/12 | | | 47 | |
FTSE EPRA Europe Index Futures | | | 295 | | | | EUR | | | 3,804 | | 06/12 | | | 38 | |
Hang Seng Index Futures (Hong Kong) | | | 21 | | | | HKD | | | 21,987 | | 05/12 | | | 57 | |
S&P TSE 60 Index Futures (Canada) | | | 10 | | | | CAD | | | 1,397 | | 06/12 | | | 12 | |
SGX MSCI Singapore Index Futures | | | 21 | | | | SGD | | | 1,431 | | 05/12 | | | 4 | |
TOPIX Index Futures (Japan) | | | 35 | | | | JPY | | | 280,875 | | 06/12 | | | (124 | ) |
| | | | | | | | | | | | | | | | |
| | | |
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å) | | | | | | | | 34 | |
| | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Real Estate Securities Fund | | 401 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Bank of America | | USD | | | 90 | | | CAD | | 89 | | | 05/01/12 | | | | — | |
Bank of America | | USD | | | 1,402 | | | CAD | | 1,383 | | | 05/17/12 | | | | (2 | ) |
Bank of Montreal | | USD | | | 649 | | | HKD | | 5,033 | | | 06/20/12 | | | | — | |
Citibank | | EUR | | | 300 | | | USD | | 394 | | | 06/20/12 | | | | (3 | ) |
Commonwealth Bank of Australia | | USD | | | 418 | | | AUD | | 405 | | | 06/20/12 | | | | 1 | |
Commonwealth Bank of Australia | | USD | | | 291 | | | CAD | | CAD 289 | | | 06/20/12 | | | | 2 | |
Commonwealth Bank of Australia | | USD | �� | | 702 | | | EUR | | 538 | | | 06/20/12 | | | | 10 | |
Commonwealth Bank of Australia | | USD | | | 649 | | | HKD | | 5,033 | | | 06/20/12 | | | | — | |
Commonwealth Bank of Australia | | USD | | | 419 | | | JPY | | 35,075 | | | 06/20/12 | | | | 21 | |
Deutsche Bank AG | | USD | | | 418 | | | AUD | | 405 | | | 06/20/12 | | | | 2 | |
Deutsche Bank AG | | USD | | | 291 | | | CAD | | CAD 289 | | | 06/20/12 | | | | 1 | |
Deutsche Bank AG | | USD | | | 702 | | | EUR | | 538 | | | 06/20/12 | | | | 10 | |
Deutsche Bank AG | | USD | | | 649 | | | HKD | | 5,033 | | | 06/20/12 | | | | — | |
Deutsche Bank AG | | USD | | | 419 | | | JPY | | 35,075 | | | 06/20/12 | | | | 21 | |
HSBC Bank PLC | | USD | | | 418 | | | AUD | | 405 | | | 06/20/12 | | | | 2 | |
HSBC Bank PLC | | USD | | | 291 | | | CAD | | CAD 289 | | | 06/20/12 | | | | 1 | |
HSBC Bank PLC | | USD | | | 702 | | | EUR | | 538 | | | 06/20/12 | | | | 10 | |
HSBC Bank PLC | | USD | | | 649 | | | HKD | | 5,033 | | | 06/20/12 | | | | — | |
HSBC Bank PLC | | USD | | | 419 | | | JPY | | 35,075 | | | 06/20/12 | | | | 20 | |
JPMorgan Chase Bank | | USD | | | 307 | | | AUD | | 300 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 418 | | | AUD | | 405 | | | 06/20/12 | | | | 1 | |
JPMorgan Chase Bank | | USD | | | 202 | | | CAD | | 200 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | USD | | | 291 | | | CAD | | 289 | | | 06/20/12 | | | | 2 | |
JPMorgan Chase Bank | | USD | | | 660 | | | EUR | | 500 | | | 06/20/12 | | | | 2 | |
JPMorgan Chase Bank | | USD | | | 702 | | | EUR | | 538 | | | 06/20/12 | | | | 10 | |
JPMorgan Chase Bank | | USD | | | 246 | | | JPY | | JPY 20,000 | | | 06/20/12 | | | | 4 | |
JPMorgan Chase Bank | | USD | | | 419 | | | JPY | | 35,075 | | | 06/20/12 | | | | 21 | |
JPMorgan Chase Bank | | USD | | | 80 | | | SGD | | 100 | | | 06/20/12 | | | | 1 | |
JPMorgan Chase Bank | | AUD | | | 500 | | | USD | | 514 | | | 06/20/12 | | | | (4 | ) |
JPMorgan Chase Bank | | CAD | | | 300 | | | USD | | 300 | | | 06/20/12 | | | | (4 | ) |
JPMorgan Chase Bank | | EUR | | | 200 | | | USD | | 265 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | EUR | | | 500 | | | USD | | 657 | | | 06/20/12 | | | | (5 | ) |
JPMorgan Chase Bank | | HKD | | | 5,000 | | | USD | | 645 | | | 06/20/12 | | | | — | |
JPMorgan Chase Bank | | JPY | | | 50,000 | | | USD | | 622 | | | 06/20/12 | | | | (4 | ) |
JPMorgan Chase Bank | | SGD | | | 500 | | | USD | | 401 | | | 06/20/12 | | | | (4 | ) |
Mellon Bank | | USD | | | 50 | | | CAD | | 50 | | | 06/20/12 | | | | — | |
Mellon Bank | | USD | | | 649 | | | HKD | | 5,033 | | | 06/20/12 | | | | — | |
Mellon Bank | | USD | | | 1,379 | | | SGD | | 1,735 | | | 06/20/12 | | | | 23 | |
Mellon Bank | | AUD | | | 200 | | | USD | | 204 | | | 06/20/12 | | | | (4 | ) |
Mellon Bank | | HKD | | | 1,000 | | | USD | | 129 | | | 06/20/12 | | | | — | |
Royal Bank of Canada | | USD | | | 418 | | | AUD | | 405 | | | 06/20/12 | | | | 2 | |
Royal Bank of Canada | | USD | | | 291 | | | CAD | | 289 | | | 06/20/12 | | | | 2 | |
Royal Bank of Canada | | USD | | | 702 | | | EUR | | 538 | | | 06/20/12 | | | | 10 | |
Royal Bank of Canada | | USD | | | 419 | | | JPY | | 35,075 | | | 06/20/12 | | | | 20 | |
Royal Bank of Scotland PLC | | USD | | | 420 | | | AUD | | 410 | | | 06/20/12 | | | | 5 | |
Royal Bank of Scotland PLC | | USD | | | 715 | | | AUD | | 700 | | | 06/20/12 | | | | 11 | |
Royal Bank of Scotland PLC | | USD | | | 252 | | | CAD | | 250 | | | 06/20/12 | | | | 1 | |
Royal Bank of Scotland PLC | | USD | | | 603 | | | CAD | | 600 | | | 06/20/12 | | | | 4 | |
Royal Bank of Scotland PLC | | USD | | | 793 | | | EUR | | 600 | | | 06/20/12 | | | | 1 | |
Royal Bank of Scotland PLC | | USD | | | 1,959 | | | EUR | | 1,500 | | | 06/20/12 | | | | 26 | |
Royal Bank of Scotland PLC | | USD | | | 515 | | | HKD | | 4,000 | | | 06/20/12 | | | | — | |
Royal Bank of Scotland PLC | | USD | | | 773 | | | HKD | | 6,000 | | | 06/20/12 | | | | — | |
Royal Bank of Scotland PLC | | USD | | | 17 | | | JPY | | 1,404 | | | 05/02/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 402 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
Royal Bank of Scotland PLC | | USD | | | 423 | | | JPY | | 35,000 | | | 06/20/12 | | | | 16 | |
Royal Bank of Scotland PLC | | USD | | | 972 | | | JPY | | 80,000 | | | 06/20/12 | | | | 30 | |
Royal Bank of Scotland PLC | | USD | | | 60 | | | SGD | | 75 | | | 05/02/12 | | | | — | |
Royal Bank of Scotland PLC | | USD | | | 199 | | | SGD | | 250 | | | 06/20/12 | | | | 3 | |
Royal Bank of Scotland PLC | | USD | | | 476 | | | SGD | | 600 | | | 06/20/12 | | | | 9 | |
Royal Bank of Scotland PLC | | JPY | | | 1,888 | | | USD | | 23 | | | 05/02/12 | | | | — | |
Royal Bank of Scotland PLC | | SGD | | | 93 | | | USD | | 75 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 378 | | | AUD | | 364 | | | 05/01/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 243 | | | AUD | | 232 | | | 05/02/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 149 | | | AUD | | 143 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 183 | | | AUD | | 176 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 519 | | | AUD | | 500 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | USD | | | 403 | | | CAD | | 400 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 637 | | | EUR | | 482 | | | 05/02/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 132 | | | EUR | | 100 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | USD | | | 926 | | | EUR | | 700 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 307 | | | HKD | | 2,380 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 195 | | | HKD | | 1,516 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 266 | | | HKD | | 2,067 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 129 | | | HKD | | 1,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 387 | | | HKD | | 3,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 902 | | | HKD | | 7,000 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 10 | | | JPY | | 846 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 646 | | | JPY | | 52,468 | | | 05/01/12 | | | | 12 | |
State Street Bank & Trust Co. | | USD | | | 2,795 | | | JPY | | 224,883 | | | 05/07/12 | | | | 21 | |
State Street Bank & Trust Co. | | USD | | | 2,933 | | | JPY | | 235,968 | | | 05/07/12 | | | | 22 | |
State Street Bank & Trust Co. | | USD | | | 123 | | | JPY | | 10,000 | | | 06/20/12 | | | | 2 | |
State Street Bank & Trust Co. | | USD | | | 718 | | | JPY | | 60,000 | | | 06/20/12 | | | | 34 | |
State Street Bank & Trust Co. | | USD | | | 95 | | | SGD | | 118 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 33 | | | SGD | | 40 | | | 05/04/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 40 | | | SGD | | 50 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | USD | | | 237 | | | SGD | | 300 | | | 06/20/12 | | | | 5 | |
State Street Bank & Trust Co. | | AUD | | | 39 | | | USD | | 40 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 120 | | | USD | | 124 | | | 05/01/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | AUD | | | 317 | | | USD | | 331 | | | 05/02/12 | | | | 1 | |
State Street Bank & Trust Co. | | AUD | | | 140 | | | USD | | 145 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 100 | | | USD | | 104 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 100 | | | USD | | 104 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | AUD | | | 100 | | | USD | | 103 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | AUD | | | 200 | | | USD | | 207 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | AUD | | | 300 | | | USD | | 309 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | AUD | | | 300 | | | USD | | 308 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | CAD | | | 100 | | | USD | | 102 | | | 06/20/12 | | | | 1 | |
State Street Bank & Trust Co. | | CAD | | | 100 | | | USD | | 100 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | CAD | | | 200 | | | USD | | 201 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | CAD | | | 200 | | | USD | | 202 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | CAD | | | 200 | | | USD | | 201 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | CAD | | | 250 | | | USD | | 252 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | EUR | | | 156 | | | GBP | | 127 | | | 05/02/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 10 | | | GBP | | 8 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 50 | | | USD | | 66 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 100 | | | USD | | 132 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 100 | | | USD | | 132 | | | 06/20/12 | | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Real Estate Securities Fund | | 403 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Schedule of Investments, continued — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | |
| Foreign Currency Exchange Contracts | | | |
| | | | | | | | | | | | | | | | | | |
Counterparty | | Amount
Sold | | | Amount
Bought | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation)
$ | |
| | | | | | | | | | | | | | | | | | |
State Street Bank & Trust Co. | | EUR | | | 200 | | | USD | | 264 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | EUR | | | 200 | | | USD | | 262 | | | 06/20/12 | | | | (3 | ) |
State Street Bank & Trust Co. | | EUR | | | 300 | | | USD | | 393 | | | 06/20/12 | | | | (4 | ) |
State Street Bank & Trust Co. | | EUR | | | 500 | | | USD | | 661 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | EUR | | | 500 | | | USD | | 657 | | | 06/20/12 | | | | (5 | ) |
State Street Bank & Trust Co. | | HKD | | | 1,000 | | | USD | | 129 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 1,500 | | | USD | | 193 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 2,000 | | | USD | | 258 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 2,000 | | | USD | | 258 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 2,000 | | | USD | | 258 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 3,500 | | | USD | | 451 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 3,700 | | | USD | | 477 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | HKD | | | 5,000 | | | USD | | 644 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | JPY | | | 1,403 | | | AUD | | 17 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | JPY | | | 947 | | | USD | | 12 | | | 05/01/12 | | | | — | |
State Street Bank & Trust Co. | | JPY | | | 1,487 | | | USD | | 18 | | | 05/07/12 | | | | — | |
State Street Bank & Trust Co. | | JPY | | | 255,701 | | | USD | | 3,179 | | | 05/07/12 | | | | (24 | ) |
State Street Bank & Trust Co. | | JPY | | | 5,000 | | | USD | | 62 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | JPY | | | 5,000 | | | USD | | 62 | | | 06/20/12 | | | | — | |
State Street Bank & Trust Co. | | JPY | | | 5,000 | | | USD | | 62 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | JPY | | | 10,000 | | | USD | | 124 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | JPY | | | 15,000 | | | USD | | 186 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | JPY | | | 30,000 | | | USD | | 368 | | | 06/20/12 | | | | (8 | ) |
State Street Bank & Trust Co. | | JPY | | | 35,000 | | | USD | | 429 | | | 06/20/12 | | | | (9 | ) |
State Street Bank & Trust Co. | | PHP | | | 2,565 | | | USD | | 61 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | SGD | | | 134 | | | USD | | 108 | | | 05/03/12 | | | | — | |
State Street Bank & Trust Co. | | SGD | | | 41 | | | USD | | 33 | | | 05/04/12 | | | | — | |
State Street Bank & Trust Co. | | SGD | | | 100 | | | USD | | 80 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | SGD | | | 100 | | | USD | | 80 | | | 06/20/12 | | | | (1 | ) |
State Street Bank & Trust Co. | | SGD | | | 250 | | | USD | | 200 | | | 06/20/12 | | | | (2 | ) |
State Street Bank & Trust Co. | | SGD | | | 250 | | | USD | | 200 | | | 06/20/12 | | | | (2 | ) |
Westpac Banking Corp. | | USD | | | 418 | | | AUD | | 405 | | | 06/20/12 | | | | 1 | |
Westpac Banking Corp. | | USD | | | 291 | | | CAD | | 289 | | | 06/20/12 | | | | 2 | |
Westpac Banking Corp. | | USD | | | 702 | | | EUR | | 538 | | | 06/20/12 | | | | 10 | |
Westpac Banking Corp. | | USD | | | 649 | | | HKD | | 5,033 | | | 06/20/12 | | | | — | |
Westpac Banking Corp. | | USD | | | 419 | | | JPY | | 35,075 | | | 06/20/12 | | | | 21 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | | | 335 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Index Swap Contracts | | | | | | | | | | | | | | | |
Underlying Security | | Counterparty | | Notional
Amount | | | Terms | | Termination
Date | | Market
Value
$ | |
| | | | | | | | | | | | | | | | | | |
iShares Dow Jones US Real Estate Index Fund | | Bank of America | | | USD | | | | 12,292 | | | 3 Month LIBOR minus 0.610% | | 09/04/12 | | | 234 | |
iShares Dow Jones US Real Estate Index Fund | | Bank of America | | | USD | | | | 10,000 | | | 3 Month LIBOR minus 0.400% | | 04/05/13 | | | 389 | |
| | | | | | | | | | | | | | | | | | |
| | |
Total Market Value on Open Index Swaps contracts Premiums Paid (Received) - $— | | | | | 623 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 404 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Australia | | $ | 128,898 | | | $ | — | | | $ | — | | | $ | 128,898 | | | | 7.8 | |
Austria | | | 1,796 | | | | — | | | | — | | | | 1,796 | | | | 0.1 | |
Brazil | | | 11,789 | | | | — | | | | — | | | | 11,789 | | | | 0.7 | |
Canada | | | 69,907 | | | | — | | | | — | | | | 69,907 | | | | 4.2 | |
China | | | 14,979 | | | | — | | | | — | | | | 14,979 | | | | 0.9 | |
Finland | | | 3,328 | | | | — | | | | — | | | | 3,328 | | | | 0.2 | |
France | | | 61,307 | | | | — | | | | — | | | | 61,307 | | | | 3.7 | |
Germany | | | 15,484 | | | | — | | | | — | | | | 15,484 | | | | 0.9 | |
Hong Kong | | | 214,544 | | | | — | | | | — | | | | 214,544 | | | | 12.9 | |
India | | | 1,822 | | | | — | | | | — | | | | 1,822 | | | | 0.1 | |
Indonesia | | | 1,202 | | | | — | | | | — | | | | 1,202 | | | | 0.1 | |
Italy | | | 1,475 | | | | — | | | | — | | | | 1,475 | | | | 0.1 | |
Japan | | | 135,865 | | | | — | | | | — | | | | 135,865 | | | | 8.2 | |
Netherlands | | | 15,193 | | | | — | | | | — | | | | 15,193 | | | | 0.9 | |
Norway | | | 5,366 | | | | — | | | | — | | | | 5,366 | | | | 0.3 | |
Philippines | | | 8,436 | | | | — | | | | — | | | | 8,436 | | | | 0.5 | |
Singapore | | | 69,625 | | | | — | | | | — | | | | 69,625 | | | | 4.2 | |
Sweden | | | 20,389 | | | | — | | | | — | | | | 20,389 | | | | 1.2 | |
Switzerland | | | 7,830 | | | | — | | | | — | | | | 7,830 | | | | 0.5 | |
United Kingdom | | | 88,166 | | | | — | | | | — | | | | 88,166 | | | | 5.3 | |
United States | | | 749,307 | | | | — | | | | — | | | | 749,307 | | | | 45.0 | |
Warrants & Rights | | | — | | | | 169 | | | | — | | | | 169 | | | | —* | |
Short-Term Investments | | | — | | | | 28,955 | | | | — | | | | 28,955 | | | | 1.7 | |
Other Securities | | | — | | | | 80,697 | | | | — | | | | 80,697 | | | | 4.9 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | | 1,626,708 | | | | 109,821 | | | | — | | | | 1,736,529 | | | | 104.4 | |
| | | | | | | | | | | | | | | | | | | | |
Other Assets and Liabilities, Net | | | | | | | | | | | | | | | | | | | (4.4) | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | 100.0 | |
| | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | | 34 | | | | — | | | | — | | | | 34 | | | | —* | |
Foreign Currency Exchange Contracts | | | 10 | | | | 325 | | | | — | | | | 335 | | | | —* | |
Index Swap Contracts | | | — | | | | 623 | | | | — | | | | 623 | | | | —* | |
| | | | | | | | | | | | | | | | | | | | |
Total Other Financial Instruments** | | $ | 44 | | | $ | 948 | | | $ | — | | | $ | 992 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | | Less than .05% of net assets. |
| ** | | Other financial instruments 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Real Estate Securities Fund | | 405 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Fair Value of Derivative Instruments — April 30, 2012 (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 | | $ | — | | | $ | 447 | |
Daily variation margin on futures contracts* | | | 158 | | | | — | |
Index swap contracts, at market value | | | 623 | | | | — | |
| | | | | | | | |
Total | | $ | 781 | | | $ | 447 | |
| | | | | | | | |
| Location: Statement of Assets and Liabilities - Liabilities | | | | | | | | |
Unrealized depreciation on foreign currency exchange contracts | | $ | — | | | $ | 112 | |
Daily variation margin on futures contracts* | | | 124 | | | | — | |
| | | | | | | | |
Total | | $ | 124 | | | $ | 112 | |
| | | | | | | | |
| | |
| Derivatives not accounted for as hedging instruments | | Equity
Contracts | | | Foreign
Currency
Contracts | |
| Location: Statement of Operations - Net realized gain (loss) | | | | | | | | |
Futures contracts | | $ | 1,489 | | | $ | — | |
Index swap contracts | | | 3,032 | | | | — | |
Foreign currency-related transactions | | | — | | | | (317 | ) |
| | | | | | | | |
Total | | $ | 4,521 | | | $ | (317 | ) |
| | | | | | | | |
| Location: Statement of Operations - Net change in unrealized appreciation (depreciation) | | | | | | | | |
Futures contracts | | $ | (957 | ) | | $ | — | |
Index swap contracts | | | 427 | | | | — | |
Foreign currency-related transactions | | | — | | | | 32 | |
| | | | | | | | |
Total | | $ | 530 | | | $ | 32 | |
| | | | | | | | |
| * | 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 and 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.
| | | | |
| | 406 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,418,256 | |
Investments, at market**, *** | | | 1,736,529 | |
Cash (restricted) | | | 2,600 | |
Foreign currency holdings* | | | 7,095 | |
Unrealized appreciation on foreign currency exchange contracts | | | 447 | |
Receivables: | | | | |
Dividends and interest | | | 3,995 | |
Dividends from affiliated Russell money market funds | | | 5 | |
Investments sold | | | 11,536 | |
Fund shares sold | | | 2,251 | |
Foreign taxes recoverable | | | 122 | |
Daily variation margin on futures contracts | | | 75 | |
Prepaid expenses | | | 3 | |
Index swap contracts, at market | | | 623 | |
| | | | |
Total assets | | | 1,765,281 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Due to broker | | | 960 | |
Investments purchased | | | 15,074 | |
Fund shares redeemed | | | 3,042 | |
Accrued fees to affiliates | | | 1,378 | |
Other accrued expenses | | | 251 | |
Daily variation margin on futures contracts | | | 48 | |
Deferred tax liability | | | 5 | |
Unrealized depreciation on foreign currency exchange contracts | | | 112 | |
Payable upon return of securities loaned | | | 80,635 | |
| | | | |
Total liabilities | | | 101,505 | |
| | | | |
| | | | |
Net Assets | | $ | 1,663,776 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Real Estate Securities Fund | | 407 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (739 | ) |
Accumulated net realized gain (loss) | | | (85,106 | ) |
Unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 318,268 | |
Futures contracts | | | 34 | |
Index swap contracts | | | 623 | |
Foreign currency-related transactions | | | 375 | |
Shares of beneficial interest | | | 447 | |
Additional paid-in capital | | | 1,429,874 | |
| | | | |
Net Assets | | $ | 1,663,776 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 36.67 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 38.91 | |
Class A — Net assets | | $ | 26,789,067 | |
Class A — Shares outstanding ($.01 par value) | | | 730,573 | |
Net asset value per share: Class C(a) | | $ | 35.83 | |
Class C — Net assets | | $ | 42,658,553 | |
Class C — Shares outstanding ($.01 par value) | | | 1,190,639 | |
Net asset value per share: Class E(a) | | $ | 36.69 | |
Class E — Net assets | | $ | 33,655,528 | |
Class E — Shares outstanding ($.01 par value) | | | 917,324 | |
Net asset value per share: Class S(a) | | $ | 37.25 | |
Class S — Net assets | | $ | 1,158,450,014 | |
Class S — Shares outstanding ($.01 par value) | | | 31,100,619 | |
Net asset value per share: Class Y(a) | | $ | 37.24 | |
Class Y — Net assets | | $ | 402,223,168 | |
Class Y — Shares outstanding ($.01 par value) | | | 10,800,105 | |
Amounts in thousands | | | | |
| | | | |
* Foreign currency holdings - cost | | $ | 7,072 | |
** Securities on loan included in investments | | $ | 77,515 | |
*** Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Company Liquidating Trust and Russell U.S. Cash Collateral Fund | | $ | 109,652 | |
(a) 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.
| | | | |
| | 408 | | | Russell Global Real Estate Securities Fund |
Russell Investment Company
Russell Global Real Estate Securities Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Dividends | | $ | 27,164 | |
Dividends from affiliated Russell money market funds | | | 25 | |
Interest | | | 8 | |
Securities lending income | | | 358 | |
Less foreign taxes withheld | | | (1,276 | ) |
| | | | |
Total investment income | | | 26,279 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 6,250 | |
Administrative fees | | | 391 | |
Custodian fees | | | 291 | |
Distribution fees - Class A | | | 31 | |
Distribution fees - Class C | | | 155 | |
Transfer agent fees - Class A | | | 22 | |
Transfer agent fees - Class C | | | 37 | |
Transfer agent fees - Class E | | | 30 | |
Transfer agent fees - Class S | | | 983 | |
Transfer agent fees - Class Y | | | 8 | |
Professional fees | | | 56 | |
Registration fees | | | 71 | |
Shareholder servicing fees - Class C | | | 52 | |
Shareholder servicing fees - Class E | | | 41 | |
Trustees’ fees | | | 18 | |
Printing fees | | | 75 | |
Miscellaneous | | | 20 | |
| | | | |
Expenses before reductions | | | 8,531 | |
Expense reductions | | | — | * |
| | | | |
Net expenses | | | 8,531 | |
| | | | |
Net investment income (loss) | | | 17,748 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 18,394 | |
Futures contracts | | | 1,489 | |
Index swap contracts | | | 3,032 | |
Foreign currency-related transactions | | | (410 | ) |
| | | | |
Net realized gain (loss) | | | 22,505 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (net of deferred tax liability for foreign capital gains taxes) | | | 118,056 | |
Futures contracts | | | (957 | ) |
Index swap contracts | | | 427 | |
Foreign currency-related transactions | | | 1 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | 117,527 | |
| | | | |
Net realized and unrealized gain (loss) | | | 140,032 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 157,780 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Real Estate Securities Fund | | 409 |
Russell Investment Company
Russell Global Real Estate Securities Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 17,748 | | | $ | 28,634 | |
Net realized gain (loss) | | | 22,505 | | | | 35,458 | |
Net change in unrealized appreciation (depreciation) | | | 117,527 | | | | (102,008 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 157,780 | | | | (37,916 | ) |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (223 | ) | | | (668 | ) |
Class C | | | (290 | ) | | | (819 | ) |
Class E | | | (283 | ) | | | (909 | ) |
Class S | | | (10,599 | ) | | | (30,759 | ) |
Class Y | | | (3,761 | ) | | | (11,135 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (15,156 | ) | | | (44,290 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (66,196 | ) | | | (17,111 | ) |
Fund Reimbursements | | | — | | | | 1,664 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 76,428 | | | | (97,653 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,587,348 | | | | 1,685,001 | |
| | | | | | | | |
End of period | | $ | 1,663,776 | | | $ | 1,587,348 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (739 | ) | | $ | (3,331 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 410 | | | Russell Global Real Estate Securities Fund |
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Russell Investment Company
Russell Global Real Estate Securities Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized and
Unrealized Gain
(Loss) | | | $
Total from
Investment
Operations | | | $
Distributions from
Net Investment
Income | | | $
Distributions from
Net Realized Gain | | | $
Return of
Capital | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 33.52 | | | | .34 | | | | 3.12 | | | | 3.46 | | | | (.31 | ) | | | — | | | | — | |
October 31, 2011 | | | 35.24 | | | | .51 | | | | (1.38 | ) | | | (.87 | ) | | | (.81 | ) | | | — | | | | — | |
October 31, 2010 | | | 26.38 | | | | .90 | | | | 8.78 | | | | 9.68 | | | | (.82 | ) | | | — | | | | — | |
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(1) | | | 57.37 | | | | .11 | | | | (4.50 | ) | | | (4.39 | ) | | | (.69 | ) | | | — | | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 32.83 | | | | .21 | | | | 3.03 | | | | 3.24 | | | | (.24 | ) | | | — | | | | — | |
October 31, 2011 | | | 34.52 | | | | .23 | | | | (1.34 | ) | | | (1.11 | ) | | | (.55 | ) | | | — | | | | — | |
October 31, 2010 | | | 25.85 | | | | .64 | | | | 8.62 | | | | 9.26 | | | | (.59 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 33.54 | | | | .34 | | | | 3.12 | | | | 3.46 | | | | (.31 | ) | | | — | | | | — | |
October 31, 2011 | | | 35.26 | | | | .50 | | | | (1.38 | ) | | | (.88 | ) | | | (.80 | ) | | | — | | | | — | |
October 31, 2010 | | | 26.38 | | | | .88 | | | | 8.81 | | | | 9.69 | | | | (.81 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 34.03 | | | | .39 | | | | 3.16 | | | | 3.55 | | | | (.33 | ) | | | — | | | | — | |
October 31, 2011 | | | 35.77 | | | | .60 | | | | (1.41 | ) | | | (.81 | ) | | | (.88 | ) | | | — | | | | — | |
October 31, 2010 | | | 26.76 | | | | .98 | | | | 8.93 | | | | 9.91 | | | | (.90 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 34.03 | | | | .42 | | | | 3.15 | | | | 3.57 | | | | (.36 | ) | | | — | | | | — | |
October 31, 2011 | | | 35.76 | | | | .67 | | | | (1.40 | ) | | | (.73 | ) | | | (.95 | ) | | | — | | | | — | |
October 31, 2010 | | | 26.75 | | | | 1.04 | | | | 8.92 | | | | 9.96 | | | | (.95 | ) | | | — | | | | — | |
October 31, 2009 | | | 27.19 | | | | .86 | | | | (.48 | ) | | | .38 | | | | (.82 | ) | | | — | | | | — | |
October 31, 2008(4) | | | 38.52 | | | | (.32 | ) | | | (10.79 | ) | | | (11.11 | ) | | | (.20 | ) | | | — | | | | (.02 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 412 | | | Russell Global Real Estate Securities Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Distributions
In Excess(i) | | | $
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of
Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment
Income
to Average
Net Assets(d)(e) | | | %
Portfolio
Turnover Rate(b) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (.31 | ) | | | 36.67 | | | | 10.30 | | | | 26,789 | | | | 1.35 | | | | 1.35 | | | | 2.01 | | | | 32 | |
| | (.04 | ) | | | (.85 | ) | | | 33.52 | | | | (2.51 | ) | | | 25,724 | | | | 1.36 | | | | 1.36 | | | | 1.44 | | | | 69 | |
| | — | | | | (.82 | ) | | | 35.24 | | | | 37.23 | | | | 25,564 | | | | 1.34 | | | | 1.34 | | | | 2.83 | | | | 141 | |
| | — | | | | (.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 | | | | 1.33 | | | | 1.32 | | | | .35 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (.24 | ) | | | 35.83 | | | | 9.89 | | | | 42,659 | | | | 2.10 | | | | 2.10 | | | | 1.25 | | | | 32 | |
| | (.03 | ) | | | (.58 | ) | | | 32.83 | | | | (3.28 | ) | | | 43,207 | | | | 2.11 | | | | 2.11 | | | | .67 | | | | 69 | |
| | — | | | | (.59 | ) | | | 34.52 | | | | 36.24 | | | | 53,155 | | | | 2.09 | | | | 2.09 | | | | 2.08 | | | | 141 | |
| | — | | | | (.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 | | | | 2.08 | | | | 2.07 | | | | .38 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (.31 | ) | | | 36.69 | | | | 10.29 | | | | 33,656 | | | | 1.35 | | | | 1.35 | | | | 2.01 | | | | 32 | |
| | (.04 | ) | | | (.84 | ) | | | 33.54 | | | | (2.51 | ) | | | 35,132 | | | | 1.36 | | | | 1.36 | | | | 1.43 | | | | 69 | |
| | — | | | | (.81 | ) | | | 35.26 | | | | 37.22 | | | | 38,484 | | | | 1.34 | | | | 1.34 | | | | 2.79 | | | | 141 | |
| | — | | | | (.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 | | | | 1.33 | | | | 1.32 | | | | 1.13 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (.33 | ) | | | 37.25 | | | | 10.43 | | | | 1,158,449 | | | | 1.10 | | | | 1.10 | | | | 2.27 | | | | 32 | |
| | (.05 | ) | | | (.93 | ) | | | 34.03 | | | | (2.28 | ) | | | 1,107,094 | | | | 1.11 | | | | 1.11 | | | | 1.68 | | | | 69 | |
| | — | | | | (.90 | ) | | | 35.77 | | | | 37.58 | | | | 1,168,039 | | | | 1.09 | | | | 1.09 | | | | 3.08 | | | | 141 | |
| | — | | | | (.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 | | | | 1.08 | | | | 1.07 | | | | 1.38 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (.36 | ) | | | 37.24 | | | | 10.53 | | | | 402,223 | | | | .92 | | | | .92 | | | | 2.43 | | | | 32 | |
| | (.05 | ) | | | (1.00 | ) | | | 34.03 | | | | (2.10 | ) | | | 376,191 | | | | .93 | | | | .93 | | | | 1.86 | | | | 69 | |
| | — | | | | (.95 | ) | | | 35.76 | | | | 37.83 | | | | 399,759 | | | | .91 | | | | .91 | | | | 3.28 | | | | 141 | |
| | — | | | | (.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 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Global Real Estate Securities Fund | | 413 |
Russell Investment Company
Russell Money Market Fund
Shareholder Expense Example — April 30, 2012 (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 distribution (12b-1) and/or service fee; 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,000.00 | | | $ | 1,024.47 | |
Expenses Paid During Period* | | $ | 0.40 | | | $ | 0.40 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.08% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,000.00 | | | $ | 1,024.47 | |
Expenses Paid During Period* | | $ | 0.40 | | | $ | 0.40 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.08% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 414 | | | Russell Money Market Fund |
Russell Investment Company
Russell Money Market Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | | | | | | | | | |
| | | Principal
Amount ($)
or Shares | | | Rate % | | | Date of
Maturity# | | | Value $ | |
| | | | | | | | | | | | | | | | |
| | | | |
| Domestic Commercial Paper - 2.6% | | | | | | | | | | | | | | | | |
Straight-A Funding, LLC | | | 2,000 | | | | 1.000 | | | | 05/24/12 | | | | 2,000 | |
Straight-A Funding, LLC | | | 1,500 | | | | 1.000 | | | | 06/01/12 | | | | 1,500 | |
Straight-A Funding, LLC | | | 1,000 | | | | 1.000 | | | | 07/02/12 | | | | 999 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total Domestic Commercial Paper (amortized cost $4,499) | | | | | | | | | | | | | | | 4,499 | |
| | | | | | | | | | | | | | | | |
| | | | |
| United States Government Agencies - 57.1% | | | | | | | | | | | | | | | | |
AID to INH Portugal Guaranteed Notes, weekly demand (Ê)(Å) | | | 3,750 | | | | 0.894 | | | | 12/01/17 | | | | 3,768 | |
Fannie Mae | | | 4,184 | | | | 4.875 | | | | 05/18/12 | | | | 4,193 | |
Federal Farm Credit Bank | | | 4,114 | | | | 0.240 | | | | 06/13/12 | | | | 4,115 | |
Federal Farm Credit Discount Notes | | | 9,000 | | | | Zero coupon | | | | 05/01/12 | | | | 9,000 | |
Federal Farm Credit Discount Notes | | | 5,000 | | | | Zero coupon | | | | 05/04/12 | | | | 5,000 | |
Federal Farm Credit Discount Notes | | | 500 | | | | Zero coupon | | | | 05/15/12 | | | | 500 | |
Federal Home Loan Bank Discount Notes | | | 5,000 | | | | Zero coupon | | | | 05/03/12 | | | | 5,000 | |
Federal Home Loan Bank Discount Notes | | | 11,212 | | | | Zero coupon | | | | 05/04/12 | | | | 11,212 | |
Federal Home Loan Bank Discount Notes | | | 10,000 | | | | Zero coupon | | | | 05/11/12 | | | | 10,000 | |
Federal Home Loan Bank Discount Notes | | | 9,807 | | | | Zero coupon | | | | 05/23/12 | | | | 9,806 | |
Federal Home Loan Bank Discount Notes | | | 7,000 | | | | Zero coupon | | | | 05/25/12 | | | | 7,000 | |
Federal Home Loan Bank Discount Notes | | | 1,726 | | | | Zero coupon | | | | 08/20/12 | | | | 1,725 | |
Federal Home Loan Bank Discount Notes | | | 3,000 | | | | Zero coupon | | | | 08/29/12 | | | | 2,998 | |
Federal Home Loan Bank Discount Notes | | | 4,500 | | | | Zero coupon | | | | 09/28/12 | | | | 4,497 | |
Federal Home Loan Banks | | | 1,875 | | | | 1.375 | | | | 06/08/12 | | | | 1,878 | |
Federal Home Loan Banks | | | 3,700 | | | | 5.375 | | | | 06/08/12 | | | | 3,720 | |
Federal National Mortgage Association Discount Notes | | | 4,500 | | | | Zero coupon | | | | 06/20/12 | | | | 4,499 | |
Freddie Mac Discount Notes | | | 9,094 | | | | Zero coupon | | | | 05/07/12 | | | | 9,094 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total United States Government Agencies (amortized cost $98,005) | | | | | | | | | | | | | | | 98,005 | |
| | | | | | | | | | | | | | | | |
| | | | |
| United States Treasury - 40.2% | | | | | | | | | | | | | | | | |
United States Treasury Bills | | | 13,000 | | | | Zero coupon | | | | 05/17/12 | | | | 13,000 | |
United States Treasury Bills | | | 9,000 | | | | Zero coupon | | | | 05/24/12 | | | | 8,999 | |
United States Treasury Bills | | | 5,000 | | | | Zero coupon | | | | 09/20/12 | | | | 4,997 | |
United States Treasury Notes | | | 15,000 | | | | 1.375 | | | | 05/15/12 | | | | 15,007 | |
United States Treasury Notes | | | 20,000 | | | | 0.750 | | | | 05/31/12 | | | | 20,011 | |
United States Treasury Notes | | | 5,000 | | | | 1.875 | | | | 06/15/12 | | | | 5,011 | |
United States Treasury Notes | | | 2,000 | | | | 0.375 | | | | 10/31/12 | | | | 2,003 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total United States Treasury (amortized cost $69,028) | | | | | | | | | | | | | | | 69,028 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Total Investments - 99.9% (cost $171,532) (†) | | | | | | | | | | | | | | | 171,532 | |
| | | | |
| Other Assets and Liabilities, Net - 0.1% | | | | | | | | | | | | | | | 137 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Net Assets - 100.0% | | | | | | | | | | | | | | | 171,669 | |
| | | | | | | | | | | | | | | | |
| | |
| Russell Money Market Fund | | 415 |
Russell Investment Company
Russell Money Market Fund
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
Amounts in thousands
| | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | % of Net
Assets | |
| Portfolio Summary | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |
| | | | | | | | | | | | | | | | | | | | |
Domestic Commercial Paper | | $ | — | | | $ | 4,499 | | | $ | — | | | $ | 4,499 | | | | 2.6 | |
United States Government Agencies | | | — | | | | 98,005 | | | | — | | | | 98,005 | | | | 57.1 | |
United States Treasury | | | — | | | | 69,028 | | | | — | | | | 69,028 | | | | 40.2 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments | | $ | — | | | $ | 171,532 | | | $ | — | | | $ | 171,532 | | | | 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.
There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended April 30, 2012.
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 416 | | | Russell Money Market Fund |
Russell Investment Company
Russell Money Market Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at amortized cost which approximates value | | $ | 171,532 | |
Receivables: | | | | |
Interest | | | 396 | |
Investments sold | | | 201 | |
| | | | |
Total assets | | | 172,129 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Accrued fees to affiliates | | | 339 | |
Other accrued expenses | | | 107 | |
Income distribution | | | 14 | |
| | | | |
Total liabilities | | | 460 | |
| | | | |
| | | | |
Net Assets | | $ | 171,669 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Money Market Fund | | 417 |
Russell Investment Company
Russell Money Market Fund
Statement of Assets and Liabilities, continued — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 1 | |
Accumulated net realized gain (loss) | | | (6 | ) |
Shares of beneficial interest | | | 1,718 | |
Additional paid-in capital | | | 169,956 | |
| | | | |
Net Assets | | $ | 171,669 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 1.00 | |
Class A — Net assets | | $ | 53,102,044 | |
Class A — Shares outstanding ($.01 par value) | | | 53,024,822 | |
Net asset value per share: Class S(a) | | $ | 1.00 | |
Class S — Net assets | | $ | 118,567,342 | |
Class S — Shares outstanding ($.01 par value) | | | 118,704,212 | |
Amounts in thousands | | | | |
(a) 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.
| | | | |
| | 418 | | | Russell Money Market Fund |
Russell Investment Company
Russell Money Market Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Interest | | $ | 73 | |
| | | | |
Total investment income | | | 73 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 188 | |
Administrative fees | | | 47 | |
Custodian fees | | | 30 | |
Transfer agent fees - Class A | | | 51 | |
Transfer agent fees - Class S | | | 117 | |
Professional fees | | | 30 | |
Registration fees | | | 77 | |
Trustees’ fees | | | 4 | |
Printing fees | | | 5 | |
Miscellaneous | | | 9 | |
| | | | |
Expenses before reductions | | | 558 | |
Expense reductions | | | (485 | ) |
| | | | |
Net expenses | | | 73 | |
| | | | |
Net investment income (loss) | | | — | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on Investments | | | (2 | ) |
Net change in unrealized appreciation (depreciation) on Investments | | | — | |
| | | | |
Net realized and unrealized gain (loss) | | | (2 | ) |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | (2 | ) |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Money Market Fund | | 419 |
Russell Investment Company
Russell Money Market Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year
Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | — | | | $ | 5 | |
Net realized gain (loss) | | | (2 | ) | | | (3 | ) |
Net change in unrealized appreciation (depreciation) | | | — | | | | — | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | (2 | ) | | | 2 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | — | | | | (65 | ) |
Class S | | | — | | | | (214 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | — | | | | (279 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (41,380 | ) | | | (125,409 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (41,382 | ) | | | (125,686 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 213,051 | | | | 338,737 | |
| | | | | | | | |
End of period | | $ | 171,669 | | | $ | 213,051 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 1 | | | $ | 1 | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 420 | | | Russell Money Market Fund |
(This page intentionally left blank)
Russell Investment Company
Russell Money Market Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | |
| | |
$
Net Asset Value,
Beginning of
Period | | | $
Net
Investment
Income (Loss)(a)(d) | | | $
Net Realized
and Unrealized
Gain (Loss) | | | $
Total from
Investment
Operations | | | $
Distributions
from Net
Investment Income | |
Class A | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 1.0000 | | | | — | | | | — | | | | — | | | | — | |
October 31, 2011 | | | 1.0000 | | | | .0001 | | | | .0008 | | | | .0009 | | | | (.0009 | ) |
October 31, 2010 | | | 1.0000 | | | | .0005 | | | | (.0005 | ) | | | — | | | | — | (f) |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 1.0000 | | | | — | | | | — | | | | — | | | | — | |
October 31, 2011 | | | 1.0000 | | | | — | | | | .0009 | | | | .0009 | | | | (.0009 | ) |
October 31, 2010 | | | 1.0000 | | | | .0005 | | | | (.0005 | ) | | | — | | | | — | (f) |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 422 | | | Russell Money Market Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
$
Total
Distributions | | | $
Net Asset Value,
End of
Period | | | %
Total
Return(b)(c) | | | $
Net Assets,
End of Period
(000) | | | %
Ratio of Expenses
to Average
Net Assets,
Gross(e) | | | %
Ratio of Expenses
to Average
Net Assets,
Net(d)(e) | | | %
Ratio of Net
Investment Income
to Average
Net Assets(d)(e) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 1.0000 | | | | — | | | | 53,102 | | | | .59 | | | | .08 | | | | — | |
| | (.0009 | ) | | | 1.0000 | | | | .09 | | | | 64,191 | | | | .54 | | | | .13 | | | | — | |
| | — | (f) | | | 1.0000 | | | | .08 | (h) | | | 78,133 | | | | .44 | | | | .12 | (h) | | | .05 | (h) |
| | (.0042 | ) | | | 1.0000 | | | | .42 | | | | 166,150 | | | | .63 | | | | .31 | | | | .52 | |
| | (.0340 | ) | | | 1.0000 | | | | 3.45 | | | | 415,233 | | | | .42 | | | | .26 | | | | 3.24 | |
| | (.0517 | ) | | | 1.0000 | | | | 5.30 | | | | 291,636 | | | | .40 | | | | .25 | | | | 5.18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 1.0000 | | | | — | | | | 118,567 | | | | .59 | | | | .08 | | | | — | |
| | (.0009 | ) | | | 1.0000 | | | | .09 | | | | 148,860 | | | | .54 | | | | .13 | | | | — | |
| | — | (f) | | | 1.0000 | | | | .08 | (h) | | | 260,604 | | | | .44 | | | | .12 | (h) | | | .05 | (h) |
| | (.0049 | ) | | | 1.0000 | | | | .49 | | | | 2,411,490 | | | | .55 | | | | .23 | | | | .53 | |
| | (.0351 | ) | | | 1.0000 | | | | 3.56 | | | | 4,874,243 | | | | .32 | | | | .16 | | | | 3.44 | |
| | (.0527 | ) | | | 1.0000 | | | | 5.40 | | | | 5,429,652 | | | | .30 | | | | .15 | | | | 5.27 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Money Market Fund | | 423 |
Russell Investment Company
Russell Funds
Notes to Schedules of Investments — April 30, 2012 (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 value. |
| (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. |
| (å) | Currency balances were held in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. See Note 2. |
Abbreviations:
ADR - American Depositary Receipt
ADS - American Depositary Share
BBR - Bank Bill Rate
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
EURIBOR - Euro Interbank Offered Bank
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
LIBOR - London Interbank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
NZD - New Zealand Dollar
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 | | |
| | | | |
| | 424 | | | Russell Money Market Fund |
Russell Investment Company
Russell Funds
Notes to Financial Highlights — April 30, 2012 (Unaudited)
| * | For the period ended April 30, 2012 (Unaudited). |
| (1) | For the period March 1, 2007 (commencement of operations) to October 31, 2007. |
| (2) | For the period October 22, 2007 (commencement of operations) to October 31, 2007. |
| (3) | For the period September 2, 2008 (commencement of operations) to October 31, 2008. |
| (4) | For the period September 26, 2008 (commencement of operations) to October 31, 2008. |
| (5) | For the period June 1, 2010 (commencement of operations) to October 31, 2010. |
| (6) | For the period July 1, 2010 (commencement of operations) to October 31, 2010. |
| (7) | For the period October 1, 2010 (commencement of operations) to October 31, 2010. |
| (8) | For the period February 7, 2012 (commencement of operations) to April 30, 2012. |
| (a) | Average daily shares outstanding were used for this calculation. |
| (b) | Periods less than one year are not annualized. |
| (c) | Total return for Class A does not reflect a front-end sales charge. If sales charges were included, the total return would be lower. |
| (d) | May reflect amounts waived and/or reimbursed by Russell Investment Management Company (“RIMCo”) and/or Russell Fund Services Company (“RFSC”), and for certain funds, custody credit arrangements. |
| (e) | The ratios for periods less than one year are annualized. |
| (f) | Less than $.01 per share. |
| (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: |
| | | | | | | | | | | | | | | | | | | | |
For the period ended | | Class A | | | Class C | | | Class E | | Class I | | Class S | | | Class Y | |
April 30, 2012 | | | 1.07% | | | | 1.82 | % | | 1.01% | | 0.74% | | | 0.82 | % | | | 0.64 | % |
October 31, 2011 | | | 1.08% | | | | 1.83 | % | | 1.01% | | 0.75% | | | 0.83 | % | | | 0.65 | % |
October 31, 2010 | | | 1.06% | | | | 1.81 | % | | 0.95% | | 0.71% | | | 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 | % |
| (h) | For fiscal year 2010, expenses on the Russell Money Market Fund were over accrued on several categories. Adjustments to these estimates have been made and are reflected in this presentation. If adjustments had not been made, the expense ratios would have been higher and the net investment income and the total return would have been lower. Additionally, the Fund’s total return reflects a voluntary payment from an affiliate for realized losses. Excluding this reimbursement the Fund’s total return would have been 0.22% lower. |
| (i) | Distributions in excess of accumulated earnings and profits but not in excess of current earnings and profits computed on a tax basis. |
See accompanying notes which are an integral part of the financial statements.
| | |
| Russell Money Market Fund | | 425 |
Russell Investment Company
Russell Funds
Notes to Financial Statements — April 30, 2012 (Unaudited)
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 38 different investment portfolios referred to as Funds. These financial statements report on 21 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 operated as a Massachusetts business trust under a Second Amended and Restated Master Trust Agreement dated October 1, 2008 as amended (“Master Trust Agreement”). 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 U.S. generally accepted accounting principles (“U.S. GAAP”) which require the use of management estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The 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 money market fund securities or short-term debt obligations. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell Fund Services Company (“RFSC”).
U.S. GAAP defines fair market value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires a separate disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:
| | • | | Level 1 — Inputs using quoted prices in active markets or exchanges for identical assets and liabilities. |
| | • | | Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are non-active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. |
| | • | | Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair market value of investments. |
The valuation techniques and significant inputs used in determining the fair market values of financial instruments classified as Level 1 and Level 2 of the fair value hierarchy are as follows:
Common stocks, exchange traded funds and derivatives that are traded on a national securities exchange are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, bank notes and non-U.S. bonds are normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their internal pricing models. The service providers’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads and default rates. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Fixed income securities purchased on a delayed-delivery basis and marked-to-market daily until settlement at the forward settlement date are categorized as Level 2 of the fair value hierarchy.
Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their
| | | | |
| | 426 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
internal pricing models. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows of each tranche, market-based yield spreads for each tranche, current market data and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Investments in privately held investment funds will be valued based upon the net asset value (“NAV”) of such investments and are categorized as Level 2 of the fair value hierarchy. The Funds have adopted the authoritative guidance under U.S. GAAP for estimating the fair value of investments in funds that have calculated NAV per share in accordance with the specialized accounting guidance for investment companies. Accordingly, while NAV per share of an investment may not be determinative of fair value, as defined by U.S. GAAP, the Funds estimate the fair value of an investment in a fund using the NAV per share of the investment (or its equivalent) without further adjustment as a practical expedient, if the NAV per share of the investment is determined in accordance with the specialized accounting guidance for investment companies as of the reporting entity’s measurement date.
Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair market value. These investments are categorized as Level 2 of the fair value hierarchy.
Financial over-the-counter derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of broker dealer quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative contracts can be estimated by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves, dividends and exchange rates. Derivatives that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Events or circumstances affecting the values of Fund securities that occur between the closing of the principal markets on which they trade and the time the NAV of Fund shares is determined may be reflected in the calculation of NAV for each applicable Fund when the Fund deems that the particular event or circumstance would materially affect such Fund’s NAV. Funds that invest primarily in frequently traded exchange-listed securities will use fair value pricing in limited circumstances since reliable market quotations will often be readily available. Funds that invest in foreign securities 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. Although there are observable inputs assigned on a security level, prices are derived from factors using proprietary models or matrix pricing. For this reason, significant events will cause movement between Levels 1 and 2. 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, a Fund’s foreign exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict.
The NAV of a Fund’s portfolio that includes foreign securities may change on days when shareholders will not be able to purchase or redeem fund shares, since foreign securities can trade on non-business days.
Level 3 Trading Assets and Trading Liabilities, at Fair Value
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes). When RFSC applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV, securities will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe accurately reflects fair value and are categorized as Level 3 of the fair value hierarchy. Fair value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot guarantee that fair values determined by the Board or persons acting at their direction would accurately reflect the
| | |
| Notes to Financial Statements | | 427 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported market values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in/out of the Level 3 category during the period. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, Level 3 reconciliation and additional disclosure about fair value measurements, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.
Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities transactions, if 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 (the “Code”) and intends to distribute all of its taxable income and capital gains. Therefore, no federal income tax provision is required for the Funds.
One of the requirements for favorable tax treatment as a regulated investment company under the Code is that a Fund derives at least 90% of its gross income from certain qualifying sources of income. The Internal Revenue Service (the “IRS”) has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income under sub-chapter M of the Code. As such, the Russell Commodity Strategies Fund’s ability to utilize commodity-linked swaps as part of its investment strategy is limited to a maximum of 10 percent of its gross income. In a subsequent revenue ruling, the IRS concluded that income from alternative investment instruments that create commodity exposure may be considered qualifying income under the Code. The IRS has also issued private letter rulings to other taxpayers in which they specifically concluded that income derived from an investment in a wholly-owned subsidiary will constitute qualifying income, even if the subsidiary itself owns commodity-linked swaps. Although those private letter rulings can be relied on only by the taxpayers to whom they were issued, based on the reasoning in such rulings, the Russell Commodity Strategies Fund gains exposure to the commodity markets primarily through investments in the Russell Cayman Commodity Strategies Fund Ltd. The Russell Commodity Strategies Fund has also requested its own such private letter ruling, although the IRS currently has suspended the issuance of such rulings pending further internal review. There can be no assurance that the IRS will issue the requested ruling to the Russell Commodity Strategies Fund, or that the IRS will not change its position that income derived from commodity-linked notes and wholly-owned subsidiaries is qualifying income. The ability of the Fund to qualify for favorable regulated investment company status under the Code could be jeopardized if the Fund were unable to treat its income from commodity-linked notes and the Subsidiary as qualifying income. Furthermore, the tax treatment of commodity-linked notes, other commodity-linked derivatives and the Fund’s investments in the Subsidiary may otherwise be adversely affected by future legislation, Treasury Regulations and/or guidance issued by the IRS that could affect the character, timing and/or amount of the Fund’s taxable income or any gains and distributions made by the Fund.
The Funds comply with the authoritative guidance for uncertainty in income taxes which requires management to determine whether a tax position of the Funds is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. Management determined that no accruals need to be made in the financial statements due to uncertain tax positions. Management continually reviews and adjusts its liability for income taxes based on analyses of tax laws and regulations, as well as their interpretations, and other relevant factors.
| | | | |
| | 428 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
Each Fund files a U.S. tax return. At April 30, 2012, the Funds had recorded no liabilities for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns. While the statute of limitations remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ending October 31, 2008 through October 31, 2010, 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, Russell Tax Exempt Bond and Russell Global Opportunistic Credit Funds |
| | |
Quarterly | | April, July, October and December | | Russell U.S. Core Equity, Russell U.S. Quantitative Equity, Russell U.S. Value, Russell Global Infrastructure, Russell Global Real Estate Securities, Russell U.S. Large Cap Equity, Russell U.S. Mid Cap Equity and Russell U.S. Growth Funds |
| | |
Annually | | Mid-December | | Russell U.S. Small Cap Equity, Russell International Developed Markets, Russell Global Equity, Russell Emerging Markets, Russell Tax-Managed U.S. Large Cap, Russell Tax-Managed U.S. Mid & Small Cap and Russell Commodity Strategies 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 U.S. 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 U.S. GAAP primarily relate to investments in options, futures, forward contracts, swap contracts, passive foreign investment companies, foreign-denominated investments, mortgage-backed securities, certain securities sold at a loss and capital loss carryforwards.
Expenses
The Funds 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
| | |
| Notes to Financial Statements | | 429 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions arise from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in the exchange rates.
The Funds do not isolate that portion of the results of operations of the Funds that arises as a result of changes in exchange rates from that portion that arises from changes in market prices of investments during the year. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Funds do isolate the effects of changes in foreign exchange rates from the fluctuations arising from changes in market prices for realized gain (or loss) on debt obligations.
Capital Gains Taxes
The Russell International Developed Markets, Russell Global Equity, Russell Emerging Markets, Russell Global Opportunistic Credit, Russell Global Infrastructure and Russell Global Real Estate Securities 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, 2012. 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 | | $ | 85,328 | | | $ | — | |
Russell Global Equity Fund | | | 83,193 | | | | — | |
Russell Emerging Markets Fund | | | 2,537,495 | | | | 316,025 | |
Russell Global Infrastructure Fund | | | 14,154 | | | | — | |
Russell Global Real Estate Securities Fund | | | 5,061 | | | | — | |
Derivatives
To the extent permitted by the investment objectives, restrictions and policies set forth in the Funds’ Prospectuses 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 and forwards. These instruments offer unique characteristics and risks that facilitate Funds’ 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 Tax Exempt Bond Fund, Russell Commodity Strategies Fund, and Russell Money Market 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 may also be used by certain Funds to limit or control risks, such as adverse movements in exchange rates and interest rates. Return enhancement can be accomplished through the use of derivatives in a Fund, including using derivatives as a substitute for holding physical bonds, and using them to express various macro views (e.g., interest rate movements, currency movements, and macro credit strategies). By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio characteristics that assist them in meeting their investment objectives. Depending on how the derivatives are structured and utilized, the risks associated with them may vary widely. These risks include, but are not limited to, market risk, liquidity risk, counterparty risk, basis risk, reinvestment risk, political risk, prepayment risk, extension risk and credit risk.
The effects of derivative instruments, categorized by risk exposure, on the Statement of Assets and Liabilities and the Statement of Operations, for the period ended April 30, 2012, if applicable, are disclosed in the Fair Value of Derivative Instruments presentation following each applicable Fund’s Schedule 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 (“FX contracts”). From time to time, certain Funds may enter into FX contracts to hedge certain foreign currency-denominated assets. FX contracts are recorded at market value. Certain risks may arise upon entering into these FX contracts from the potential inability of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized gain on the FX contracts, if any, that are disclosed in the Statements of Assets and Liabilities. Realized gains or losses arising from such transactions are included in net realized gain (or loss) from foreign currency-related transactions.
| | | | |
| | 430 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
For the period ended April 30, 2012, the following Funds entered into foreign currency exchange contracts primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell International Developed Markets Fund | | Return enhancement, hedging, exposing cash reserves to markets and trade settlement |
Russell Global Equity Fund | | Exposing cash reserves to markets and trade settlement |
Russell Emerging Markets Fund | | Exposing cash reserves to markets and trade settlement |
Russell Global Opportunistic Credit Fund | | Return enhancement and hedging |
Russell Strategic Bond Fund | | Return enhancement and hedging |
Russell Investment Grade Bond Fund | | Return enhancement and hedging |
Russell Short Duration Bond Fund | | Return enhancement and hedging |
Russell Global Infrastructure Fund | | Exposing cash reserves to markets and trade settlement |
Russell Global Real Estate Securities Fund | | Exposing cash reserves to markets and trade settlement |
The Funds’ foreign currency contract notional dollar values outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the purpose of this disclosure, volume is measured by the amounts bought and sold in USD.
| | | | | | | | |
| | | Outstanding Contract Amounts Bought, Quarter Ended | |
Funds | | January 31, 2012 | | | April 30, 2012 | |
| | | | | | | | |
Russell International Developed Markets Fund | | $ | 1,097,147,093 | | | $ | 883,277,879 | |
Russell Global Equity Fund | | | 375,602,090 | | | | 250,841,688 | |
Russell Emerging Markets Fund | | | 158,430,981 | | | | 131,474,520 | |
Russell Global Opportunistic Credit Fund | | | 122,699,127 | | | | 137,725,288 | |
Russell Strategic Bond Fund | | | 1,185,672,491 | | | | 4,154,009,130 | |
Russell Investment Grade Fund | | | 146,261,855 | | | | 95,123,916 | |
Russell Short Duration Fund | | | 182,675,906 | | | | 143,121,707 | |
Russell Global Infrastructure Fund | | | 79,064,089 | | | | 66,418,717 | |
Russell Global Real Estate Securities Fund | | | 77,170,408 | | | | 59,414,100 | |
| | | | | | | | |
| | | Outstanding Contract Amounts Sold, Quarter Ended | |
Funds | | January 31, 2012 | | | April 30, 2012 | |
| | | | | | | | |
Russell International Developed Markets Fund | | $ | 1,096,027,467 | | | $ | 880,717,244 | |
Russell Global Equity Fund | | | 374,533,519 | | | | 249,134,302 | |
Russell Emerging Markets Fund | | | 155,981,456 | | | | 132,342,619 | |
Russell Global Opportunistic Credit Fund | | | 124,329,661 | | | | 139,172,980 | |
Russell Strategic Bond Fund | | | 1,890,011,914 | | | | 3,936,536,560 | |
Russell Investment Grade Fund | | | 146,960,872 | | | | 95,403,868 | |
Russell Short Duration Fund | | | 183,857,567 | | | | 143,530,847 | |
Russell Global Infrastructure Fund | | | 79,150,107 | | | | 66,025,660 | |
Russell Global Real Estate Securities Fund | | | 138,557,149 | | | | 60,618,363 | |
As of April 30, 2012, the following Funds had cash collateral balances in connection with forward contracts purchased (sold) as follows:
| | | | |
| | | Due to Broker | |
| | | | |
Russell Strategic Bond Fund | | $ | 655,000 | |
Russell Investment Grade Bond Fund | | | 110,000 | |
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.
| | |
| Notes to Financial Statements | | 431 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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 a Fund’s Statement of Assets and Liabilities.
For the period ended April 30, 2012, the Funds purchased/sold options primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Strategic Bond Fund | | Return enhancement and hedging |
Russell Investment Grade Bond Fund | | Return enhancement and hedging |
Russell Short Duration Bond Fund | | Return enhancement and hedging |
The Funds’ options contracts outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following table illustrates the quarterly volume of options contracts. For purpose of this disclosure, volume is measured by contracts outstanding at period end.
| | | | | | | | |
| | | Number of Options Contracts Outstanding,
Quarter Ended | |
| Funds | | January 31, 2012 | | | April 30, 2012 | |
Russell Strategic Bond Fund | | | 198 | | | | 44 | |
Russell Investment Grade Bond Fund | | | 82 | | | | 41 | |
Russell Short Duration Bond Fund | | | 70 | | | | 18 | |
Futures Contracts
The Funds may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts). 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 typically required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement value are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized.
For the period ended April 30, 2012, the following Funds entered into future contracts primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell U.S. Core Equity Fund | | Exposing cash reserves to markets |
Russell U.S. Quantitative Equity Fund | | Exposing cash reserves to markets |
Russell U.S. Growth Fund | | Exposing cash reserves to markets |
Russell U.S. Value Fund | | Exposing cash reserves to markets |
Russell U.S. Large Cap Equity Fund | | Exposing cash reserves to markets |
Russell U.S. Mid Cap Equity Fund | | Exposing cash reserves to markets |
Russell U.S. Small Cap Equity Fund | | Exposing cash reserves to markets |
Russell International Developed Markets Fund | | Return enhancement and exposing cash reserves to markets |
Russell Global Equity Fund | | Exposing cash reserves to markets |
Russell Emerging Markets Fund | | Exposing cash reserves to markets |
Russell Tax-Managed U.S. Large Cap Fund | | Exposing cash reserves to markets |
| | | | |
| | 432 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | |
| Funds | | Strategies |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | Exposing cash reserves to markets |
Russell Strategic Bond Fund | | Return enhancement, hedging, and exposing cash reserves to markets |
Russell Investment Grade Bond Fund | | Return enhancement, hedging, and exposing cash reserves to markets |
Russell Short Duration Bond Fund | | Return enhancement, hedging, and exposing cash reserves to markets |
Russell Commodity Strategies Fund | | Return enhancement |
Russell Global Infrastructure Fund | | Exposing cash reserves to markets |
Russell Global Real Estate Securities Fund | | Exposing cash reserves to markets |
The Funds’ future contracts outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following tables illustrate the quarterly volume of future contracts. For the purpose of disclosure, volume is measured by contracts outstanding at period end.
| | | | | | | | |
| | | Number of Futures Contracts Outstanding,
Quarter Ended | |
| Funds | | January 31, 2012 | | | April 30, 2012 | |
Russell U.S. Core Equity Fund | | | 4,108 | | | | 3,557 | |
Russell U.S. Quantitative Equity Fund | | | 977 | | | | 945 | |
Russell U.S. Growth Fund | | | 54 | | | | 85 | |
Russell U.S. Value Fund | | | 81 | | | | 66 | |
Russell U.S. Large Cap Equity Fund | | | — | | | | 236 | |
Russell U.S. Mid Cap Equity Fund | | | — | | | | 99 | |
Russell U.S. Small Cap Equity Fund | | | 484 | | | | 537 | |
Russell International Developed Markets Fund | | | 7,933 | | | | 7,691 | |
Russell Global Equity Fund | | | 1,597 | | | | 2,147 | |
Russell Emerging Markets Fund | | | 2,528 | | | | 2,595 | |
Russell Tax Managed U.S. Large Cap Fund | | | 119 | | | | 695 | |
Russell Tax Managed U.S. Mid & Small Cap Fund | | | 74 | | | | 56 | |
Russell Strategic Bond Fund | | | 7,258 | | | | 14,103 | |
Russell Investment Grade Bond Fund | | | 1,162 | | | | 1,142 | |
Russell Short Duration Bond Fund | | | 987 | | | | 728 | |
Russell Commodity Strategies Fund | | | 686 | | | | 2,876 | |
Russell Global Infrastructure Fund | | | 694 | | | | 714 | |
Russell Global Real Estate Securities Fund | | | 390 | | | | 400 | |
As of April 30, 2012, 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 | | $ | 17,500,000 | |
Russell U.S. Quantitative Equity Fund | | | 5,000,000 | |
Russell U.S. Growth Fund | | | 320,000 | |
Russell U.S. Value Fund | | | 285,000 | |
Russell U.S. Large Cap Equity Fund | | | 1,300,000 | |
Russell U.S. Mid Cap Equity Fund | | | 650,000 | |
Russell U.S. Small Cap Equity Fund | | | 3,700,000 | |
Russell International Developed Markets Fund | | | 36,311,938 | |
Russell Global Equity Fund | | | 11,100,000 | |
Russell Emerging Markets Fund | | | 4,300,000 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 1,005,000 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 410,000 | |
Russell Strategic Bond Fund | | | 2,892,000 | |
Russell Investment Grade Bond Fund | | | 659,800 | |
Russell Short Duration Bond Fund | | | 102,000 | |
Russell Global Infrastructure Fund | | | 2,725,000 | |
Russell Global Real Estate Securities Fund | | | 500,000 | |
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
| | |
| Notes to Financial Statements | | 433 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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 swap agreements including interest rate, credit default, commodity-linked (Russell Commodity Strategies Fund only), index (total return) 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 assets having an aggregate NAV at least equal to the accrued excess will be segregated. To the extent that the Funds enter into swaps on other than a net basis, the amount 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.
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 BBB- 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.
As of April 30, 2012, 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 | | $ | 5,195,000 | | | $ | 3,012,881 | |
Russell Emerging Markets Fund | | | 8,000,000 | | | | — | |
Russell Global Opportunistic Credit Fund | | | 2,303,000 | | | | 1,188,000 | |
Russell Strategic Bond Fund | | | 8,219,640 | | | | 10,296,812 | |
Russell Investment Grade Bond Fund | | | 1,152,154 | | | | 784,117 | |
Russell Short Duration Bond Fund | | | 122,998 | | | | 1,457,000 | |
Russell Commodity Strategies Fund | | | 55,440,290 | | | | — | |
Russell Global Real Estate Securities Fund | | | 2,100,000 | | | | 960,000 | |
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, a fixed income fund would be required to pay the par or other agreed-upon value (or otherwise perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified credit event); the counterparty would be required to surrender the reference debt obligation. In return, the fixed income fund would receive from the counterparty a periodic stream of payments over the term of the contract provided
| | | | |
| | 434 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
that no credit event has occurred. If no credit event occurs, the fixed income fund would keep the stream of payments and would have no payment obligations. As a seller of protection, the fixed income fund would effectively add leverage to its portfolio because in addition to its total net assets, that Fund would be subject to investment exposure on the notional amount of the swap.
Each fixed income fund 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 fund 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).
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, 2012 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. A fixed income fund will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, a fixed income fund may lose its investment and recover nothing should a credit event fail to occur and the swap is held to its termination
| | |
| Notes to Financial Statements | | 435 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by a fixed income fund, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the fixed income fund.
If the creditworthiness of a fixed income fund’s swap counterparty declines, the risk that the counterparty may not perform could increase, potentially resulting in a loss to the fixed income fund. 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 their exposure under a swap agreement either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party. The fixed income funds may have limited ability to eliminate their exposure under a credit default swap if the credit of the reference entity or underlying asset has declined.
For the period ended April 30, 2012, the Funds entered into credit default swaps primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Global Opportunistic Credit Fund | | Return enhancement, hedging and exposing cash reserves to markets |
Russell Strategic Bond Fund | | Return enhancement and hedging |
Russell Investment Grade Bond Fund | | Return enhancement and hedging |
Russell Short Duration Bond Fund | | Return enhancement and hedging |
The Funds’ credit default contract notional amounts outstanding fluctuate throughout the operating year as required to meet the strategic requirements. The following table illustrates the quarterly volume of credit default swap contracts. For the purpose of this disclosure, the volume is measured by the notional amounts outstanding.
| | | | | | | | |
| | | Credit Default Swap Contract Notional Amounts Outstanding,
Quarter Ended | |
| Funds | | January 31, 2012 | | | April 30, 2012 | |
Russell Strategic Bond Fund | | | 1,051,755,000 | | | | 969,945,000 | |
Russell Investment Grade Bond Fund | | | 119,370,000 | | | | 58,740,000 | |
Russell Short Duration Bond Fund | | | 96,400,000 | | | | 3,000,000 | |
Russell Global Opportunistic Credit Fund | | | 11,820,000 | | | | 21,000,000 | |
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.
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, 2012, the Funds entered into interest rate swaps primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Global Opportunistic Credit Fund | | Return enhancement and hedging |
Russell Strategic Bond Fund | | Return enhancement and hedging |
Russell Investment Grade Bond Fund | | Return enhancement and hedging |
Russell Short Duration Bond Fund | | Return enhancement and hedging |
The Funds’ interest rate swaps contract notional amounts outstanding fluctuate throughout the operating year as required to meet the strategic requirements. The following table illustrates the quarterly volume of interest rate swaps contracts. For the purpose of this disclosure, the volume is measured by the notional amounts outstanding.
| | | | | | | | |
| | | Interest Rate Swap Notional Amounts Outstanding,
Quarter Ended | |
| Funds | | January 31, 2012 | | | April 30, 2012 | |
Russell Global Opportunistic Credit Fund | | | 11,820,000 | | | | 21,000,000 | |
Russell Strategic Bond Fund | | | 1,116,665,527 | | | | 998,003,511 | |
Russell Investment Grade Bond Fund | | | 89,824,815 | | | | 88,166,599 | |
Russell Short Duration Bond Fund | | | 100,264,499 | | | | 138,064,499 | |
| | | | |
| | 436 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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, 2012, the Funds entered into index swaps primarily for the strategies listed below:
| | |
| Funds | | Strategies |
Russell Emerging Markets Fund | | Exposing cash reserves to markets |
Russell Global Opportunistic Credit Fund | | Exposing cash reserves to markets |
Russell Investment Grade Bond Fund | | Return enhancement |
Russell Commodity Strategies Fund | | Return enhancement and gain exposure to the commodity futures markets |
Russell Global Real Estate Securities Fund | | Exposing cash reserves to markets |
The Funds’ index swap contract notional amounts outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following table illustrates the quarterly volume of index swap contracts. For the purpose of this disclosure, volume is measure by notional amount outstanding.
| | | | | | | | |
| | | Index Swap Contracts Notional Amounts Outstanding,
Quarter Ended | |
| Funds | | January 31, 2012 | | | April 30, 2012 | |
Russell Emerging Markets Fund | | | 25,278,455 | | | | 998,003,511 | |
Russell Global Opportunistic Credit Fund | | | 10,000,000 | | | | 21,000,000 | |
Russell Commodity Strategies Fund | | | 1,209,952,980 | | | | 1,244,388,038 | |
Russell Global Real Estate Securities Fund | | | 11,205,646 | | | | 22,291,722 | |
Commodity-Linked Derivatives
The Russell Commodity Strategies Fund invests in commodity-linked derivative instruments, such as swap agreements and futures. At least part of their value is derived from the value of an underlying commodity index, commodity futures contract, index or other readily measurable economic variable. The prices of commodity-linked derivative instruments may move in different directions than investments in traditional equity and debt securities when the value of those traditional securities is declining due to adverse economic conditions. As an example, during periods of rising inflation, historically debt securities have tended to decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of rising inflation, historically the prices of certain commodities, such as oil and metals, have tended to increase. Of course, there cannot be any guarantee that derivative instruments will perform in that manner in the future, and at certain times the price movements of commodity-linked investments have been parallel to those of debt and equity securities.
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 terminate early could be material to the financial statements.
Loan Agreements
The Russell Global Opportunistic Credit, 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
| | |
| Notes to Financial Statements | | 437 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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. As of April 30, 2012, the Funds had no unfunded loan commitments.
Participation Notes
Certain Funds may purchase participation notes, also known as participation certificates or participation interest notes. Participation notes are issued by banks or broker-dealers that are designed to replicate the performance of foreign companies or foreign securities markets and can be used by the Fund as an alternative means to access the securities market of a frontier emerging market country. The performance results of participation notes will not replicate exactly the performance of the foreign companies or foreign securities markets that they seek to replicate due to transaction and other expenses. Investments in participation notes involve certain risks in addition to those associated with a direct investment in the underlying foreign companies or foreign securities markets whose return they seek to replicate. There can be no assurance that there will be a trading market or that the trading price of a participation note will equal the underlying value of the foreign company or foreign securities market that it seeks to replicate. The Fund relies on the creditworthiness of the counterparty issuing the participation note and has no rights against the issuer of the underlying security. The Fund minimizes this risk by entering into agreements only with counterparties that RIMCo deems creditworthy. Due to liquidity and transfer restrictions, the secondary markets on which the participation notes are traded may be less liquid than the markets for other securities, or may be completely illiquid.
Credit linked Notes
The Russell Global Opportunistic Credit Fund may purchase credit linked notes. Credit linked notes are obligations between two or more parties where the payment of principal and/or interest is based on the performance of some obligation, basket of obligations, index or economic indicator (a “reference instrument”). In addition to the credit risk associated with the reference instrument and interest rate risk, the buyer and seller of a credit linked note or similar structured investment are subject to counterparty risk.
Short Sales
The 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.
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 the 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 Sections 7 and 8 of the Securities Exchange Act of 1934, as amended; or (b) otherwise cover its short position in accordance with positions taken by the staff of the Securities and Exchange Commission (e.g., taking an offsetting long position in the security sold short). As of April 30, 2012, $659,012,711 was held as collateral.
Investments in Emerging Markets
Emerging Markets Securities
Investing in emerging markets securities can pose some risks different from and greater than, risks of investing in U.S. or developed markets securities. These risks include: a risk of loss due to political instability; exposure to economic structures that are generally less diverse and mature, and to political systems which may have less stability, than those of more developed countries; smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price
| | | | |
| | 438 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
volatility; restrictions on foreign investment; and possible repatriation of investment income and capital. In addition, foreign investors may be required to register the proceeds of sales and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization, or creation of government monopolies. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Funds. Emerging market securities may be subject to currency transfer restrictions and may experience delays and disruptions in securities settlement procedures for a Fund’s portfolio securities. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.
Emerging Markets Debt
A Fund’s emerging markets debt securities may include obligations of governments and corporations. As with any fixed income securities, emerging markets debt securities are subject to the risk of being downgraded in credit rating and to the risk of default. In the event of a default on any investments in foreign debt obligations, it may be more difficult for a Fund to obtain or to enforce a judgment against the issuers of such securities. With respect to debt issued by emerging market governments, such issuers may be unwilling to pay interest and repay principal when due, either due to an inability to pay or submission to political pressure not to pay, and as a result may default, declare temporary suspensions of interest payments or require that the conditions for payment be renegotiated.
Repurchase Agreements
The fixed income funds and the Russell Money Market Fund may enter into repurchase agreements. A repurchase agreement is an agreement under which a Fund acquires a fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the seller at an agreed upon price and date (normally within a few days or weeks). The resale price reflects an agreed upon interest rate effective for the period the security is held by 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. 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 (“ABS”). These securities may include mortgage instruments issued by U.S. government agencies (“agency mortgages”) or those issued by private entities (“non-agency mortgages”). Specific types of instruments may include 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 mortgages underlying the securities may default or decline in quality or value. Through its investments in MBS, a Fund has exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage and credit markets generally. Underlying collateral related to subprime, Alt-A and non-conforming mortgage loans has become increasingly susceptible to defaults and declines in quality or value, especially in a declining residential real estate market. In addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.
Mortgage-Backed Securities
MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying the securities. In practice however, unscheduled or early payments of principal and interest on the underlying mortgages may make the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of a Fund’s portfolio at the time resulting in reinvestment risk.
Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS, making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.
MBS may have less potential for capital appreciation than comparable fixed income securities due to the likelihood of increased prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are
| | |
| Notes to Financial Statements | | 439 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
paid off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a price above par. In such an environment, this risk limits the potential price appreciation of these securities.
Agency Mortgage-Backed Securities
Certain MBS may be issued or guaranteed by the U.S. government or a government sponsored entity, such as Fannie Mae (the Federal National Mortgage Association) or Freddie Mac (the Federal Home Loan Mortgage Corporation). Although these instruments may be guaranteed by the U.S. government or a government sponsored entity, many such MBS are not backed by the full faith and credit of the United States and are still exposed to the risk of non-payment.
Privately Issued Mortgage-Backed Securities
MBS held by a Fund may be issued by private issuers including commercial banks, savings associations, mortgage companies, investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles or SPVs) and other entities that acquire and package mortgage loans for resale as MBS. These privately issued non-agency MBS may offer higher yields than those issued by government agencies, but also may be subject to greater price changes than governmental issues. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. Alt-A loans refer to loans extended to borrowers who have incomplete documentation of income, assets, or other variables that are important to the credit underwriting processes. Non-conforming mortgages are loans that do not meet the standards that allow purchase by government-sponsored enterprises. MBS with exposure to subprime loans, Alt-A loans or 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 agency 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 mortgage loans. In addition, MBS that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable to those MBS that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private MBS may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans.
Privately issued MBS are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market, MBS held in a Fund’s portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.
Asset-Backed Securities
ABS may include MBS, loans, receivables or other assets. The value of the Funds’ ABS may be affected by, among other things, actual or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the receivables, the market’s assessment of the quality of underlying assets or actual or perceived changes in the credit worthiness of the individual borrowers, the originator, the servicing agent or the financial institution providing the credit support.
Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities. Rising or high interest rates tend to extend the duration of ABS, making them more volatile and more sensitive to changes in
| | | | |
| | 440 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
interest rates. The underlying assets are sometimes subject to prepayments which can shorten the security’s weighted average life and may lower its return. Defaults on loans underlying ABS have become an increasing risk for ABS that are secured by home equity loans related to sub-prime, Alt-A or non-conforming mortgage loans, especially in a declining residential real estate market.
ABS (other than MBS) present certain risks that are not presented by MBS. Primarily, these securities may not have the benefit of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. ABS are often backed by a pool of assets representing the obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances, generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in a timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in the pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from third parties, through various means of structuring the transaction or through a combination of such approaches. The Funds will not pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on historical information respecting the level of credit risk associated with the underlying assets.
Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment in such a security. The availability of ABS may be affected by legislative or regulatory developments. It is possible that such developments may require the Funds to dispose of any then existing holdings of such securities.
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.
A to be announced (“TBA”) security is a forward mortgage-backed securities trade which the fixed funds may invest in. 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, 2012, the Funds had cash collateral balances in connection with TBAs as follows:
| | | | |
| | | Due to Broker | |
| | | | |
Russell Strategic Bond Fund | | $ | 2,480,000 | |
Russell Investment Grade Bond Fund | | | 1,480,000 | |
Russell Short Duration Bond Fund | | | 1,460,000 | |
Inflation-Indexed Bonds
Fixed income funds may invest in inflation-indexed securities, which are typically bonds or notes designed to provide a return higher than the rate of inflation (based on a designated index) if held to maturity. A common type of inflation-indexed security is a U.S. Treasury Inflation-Protected Security, or TIPS. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, the adjusted principal or original principal is paid, whichever is greater. TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest payments rise with inflation and fall with deflation.
Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
| | |
| Notes to Financial Statements | | 441 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
Market, Credit and Counterparty Risk
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to credit risk, the Funds may also be exposed to counterparty risk or risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss could exceed the value of the relevant assets recorded in the financial statements (the “Assets”). The Assets, 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 with 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. 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 entities 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 the 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 Brothers entities’ securities.
On November 4, 2011, creditors of Lehman Brothers Holdings Inc. and its affiliated chapter 11 debtors (collectively, “Lehman Brothers”) voted to accept the Third Amended Joint Chapter 11 Plan of Lehman Brothers dated August 31, 2011 (the “Plan”). The Bankruptcy Court confirmed the Plan on December 6, 2011. Creditors of Lehman Brothers expect to receive preliminary distributions in the first quarter of 2012. Pursuant to the Plan, there will be an initial distribution of “Available Cash” with semiannual distributions on each March 30th and September 30th thereafter. Reserved amounts that become available (through claims being disallowed or reduced, litigation being resolved, or distributions not being collected) will be included as Available Cash for the subsequent semi-annual distributions. Distributions will be made only to claimants holding “Allowed Claims” as of the relevant distribution date. The date for final distributions to creditors of Lehman Brothers is unknown.
| 3. | | Investment in Russell Cayman Commodity Strategies Fund Ltd. |
Russell Cayman Commodity Strategies Fund Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated on March 5, 2010 and is a wholly-owned subsidiary of the Russell Commodity Strategy Fund (the “Fund”), both of which are advised by RIMCo. The Subsidiary acts as an investment vehicle for the Fund in order to effect certain investments on behalf of the Fund consistent with the Fund’s investment objectives and policies specified in the Fund’s prospectus and statement of additional information. The Fund is the sole shareholder of the Subsidiary and it is intended that the Fund will remain the sole shareholder and, as a result, will continue to control the Subsidiary. As of April 30, 2012, net assets of the Fund were $1,258,289,313 of which $258,570,406, or approximately 21%, represented the Fund’s ownership of the shares of the Subsidiary.
The Russell Commodity Strategies Fund may invest up to 25% of its total assets in the Subsidiary, which may invest without limitation in commodity-linked derivative instruments, such as swaps and futures that provide exposure to the performance of commodities markets. The Subsidiary may also invest in fixed income securities. The Russell Commodity Strategies Fund’s Schedule of Investments has been consolidated and includes the accounts of both the Russell Commodity Strategies Fund and the Subsidiary. All inter-company transactions and balances have been eliminated upon consolidation.
| 4. | | Investment Transactions |
Securities
During the period ended April 30, 2012, 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 | | $ | 2,251,699,479 | | | $ | 2,787,287,529 | |
Russell U.S. Quantitative Equity Fund | | | 1,507,093,326 | | | | 1,727,777,468 | |
Russell U.S. Growth Fund | | | 39,789,061 | | | | 44,488,525 | |
Russell U.S. Value Fund | | | 35,127,916 | | | | 42,825,924 | |
Russell U.S. Large Cap Equity Fund | | | 194,142,261 | | | | 30,238,155 | |
Russell U.S. Mid Cap Equity Fund | | | 141,417,613 | | | | 39,143,662 | |
Russell U.S. Small Cap Equity Fund | | | 1,066,998,892 | | | | 1,148,897,245 | |
Russell International Developed Markets Fund | | | 1,247,431,994 | | | | 1,164,086,004 | |
Russell Global Equity Fund | | | 1,040,909,025 | | | | 1,000,640,564 | |
| | | | |
| | 442 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
| | | Purchases | | | Sales | |
| | | | | | | | |
Russell Emerging Markets Fund | | $ | 728,818,934 | | | $ | 689,566,515 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 139,440,828 | | | | 148,247,256 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 34,231,883 | | | | 33,501,933 | |
Russell Global Opportunistic Credit Fund | | | 433,867,874 | | | | 379,912,649 | |
Russell Strategic Bond Fund | | | 2,154,130,044 | | | | 2,393,758,815 | |
Russell Investment Grade Bond Fund | | | 386,532,433 | | | | 373,264,757 | |
Russell Short Duration Bond Fund | | | 273,519,784 | | | | 246,761,532 | |
Russell Global Equity Fund | | | 112,881,142 | | | | 87,853,822 | |
Russell Commodity Strategies Fund | | | 128,444,500 | | | | 57,523,000 | |
Russell Global Infrastructure Fund | | | 542,439,729 | | | | 520,214,461 | |
Russell Global Real Estate Securities Fund | | | 491,382,130 | | | | 517,395,912 | |
Purchases and sales of U.S. Government and Agency obligations (excluding short-term investments, options, futures and repurchase agreements) were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
| | | | | | | | |
Russell Strategic Bond Fund | | $ | 4,976,500,853 | | | $ | 4,530,792,969 | |
Russell Investment Grade Bond Fund | | | 1,412,467,418 | | | | 1,282,199,078 | |
Russell Short Duration Bond Fund | | | 1,499,658,433 | | | | 1,415,993,004 | |
Russell Commodity Strategies Fund | | | 187,783,487 | | | | 180,060,617 | |
Written Options Contracts
Transactions in written options contracts for the period ended April 30, 2012 for the following Funds were as follows:
| | | | | | | | | | | | | | | | |
| | | Russell Strategic Bond Fund | | | | | | | |
| | Number of
Contracts | | | Premiums
Received | | | | | | | |
| | | | | | | | | | | | | | | | |
Outstanding October 31, 2011 | | | 210 | | | $ | 5,837,130 | | | | | | | | | |
Opened | | | 1,377 | | | | 2,768,388 | | | | | | | | | |
Closed | | | (1,523 | ) | | | (1,144,700 | ) | | | | | | | | |
Expired | | | (20 | ) | | | (528,424 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Outstanding April 30, 2012 | | | 44 | | | $ | 6,932,394 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | |
| | | Russell Investment Grade
Bond Fund | | | Russell Short Duration
Bond Fund | |
| | | Number of
Contracts | | | Premiums
Received | | | Number of
Contracts | | | Premiums
Received | |
Outstanding October 31, 2011 | | | 413 | | | $ | 1,842,652 | | | | 80 | | | $ | 1,118,943 | |
Opened | | | 70 | | | | 686,508 | | | | 6 | | | | 58,300 | |
Closed | | | (215 | ) | | | (304,433 | ) | | | (56 | ) | | | (174,034 | ) |
Expired | | | (227 | ) | | | (195,949 | ) | | | (12 | ) | | | (160,811 | ) |
| | | | | | | | | | | | | | | | |
Outstanding April 30, 2012 | | | 41 | | | $ | 2,028,778 | | | | 18 | | | $ | 842,398 | |
| | | | | | | | | | | | | | | | |
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, pooled collateral vehicles that invest 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 Fund and any additional required
| | |
| Notes to Financial Statements | | 443 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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 by State Street.
Each Fund that participates in the securities lending program has most of the cash collateral invested in the Russell U.S. Cash Collateral Fund, an unregistered fund advised by RIMCo. Prior to December 3, 2010, the Funds that participated in securities lending had a portion of their cash collateral invested in the State Street Securities Lending Quality Trust Fund (“SLQT”), a securities lending cash collateral vehicle. On December 3, 2010, the Funds redeemed in-kind out of SLQT, realizing certain losses as a result of such redemption, and proceeds of the redemption were invested in the RIC Liquidating Trust, an unregistered fund managed by State Street.
As of April 30, 2012, 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. Core Equity Fund | | $ | 3,133,961 | | | | Pool of U.S. Government Securities | |
Russell U.S. Value Fund | | | 487,065 | | | | Pool of U.S. Government Securities | |
Russell U.S. Small Cap Equity Fund | | | 6,082,649 | | | | Pool of U.S. Government Securities | |
Russell International Developed Markets Fund | | | 10,901,934 | | | | Pool of U.S. Government Securities | |
Russell Global Equity Fund | | | 3,523,431 | | | | Pool of U.S. Government Securities | |
Russell Emerging Markets Fund | | | 20,919,024 | | | | Pool of U.S. Government Securities | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 233,662 | | | | Pool of U.S. Government Securities | |
Russell Strategic Bond Fund | | | 20,301,628 | | | | Pool of U.S. Government Securities | |
Russell Global Infrastructure Fund | | | 9,198,250 | | | | Pool of U.S. Government Securities | |
Russell Global Real Estate Securities Fund | | | 440,699 | | | | Pool of U.S. 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, 2012, 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 Paid | |
| | | | |
Russell U.S. Core Equity Fund | | $ | 22 | |
Russell U.S. Quantitative Equity Fund | | | 37 | |
Russell U.S. Growth Fund | | | 1 | |
Russell U.S. Value Fund | | | 1 | |
Russell U.S. Small Cap Equity Fund | | | 45 | |
Russell International Developed Markets Fund | | | 102 | |
Russell Global Equity Fund | | | 32 | |
Russell Emerging Markets Fund | | | 37 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 1 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 5 | |
Russell Global Opportunistic Credit Fund | | | 123 | |
Russell Strategic Bond Fund | | | 861 | |
Russell Investment Grade Bond Fund | | | 766 | |
Russell Short Duration Bond Fund | | | 2,181 | |
Russell Tax Exempt Bond Fund | | | 13 | |
Russell Commodity Strategies Fund | | | 236 | |
Russell Global Infrastructure Fund | | | 17 | |
Russell Global Real Estate Securities Fund | | | 109 | |
Brokerage Commissions
The Funds effect certain transactions through Recapture Services, division of BNY ConvergeEX Execution Solutions LLC (“BNY”) and its global network of correspondent brokers. BNY is a registered broker and is not an affiliate of the Funds or RIMCo. Trades placed through BNY and its correspondents are used (i) to obtain brokerage and 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 brokerage and 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 BNY and its correspondents or other brokers only to the
| | | | |
| | 444 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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 BNY based upon asset class, investment style and other factors. Brokerage and research services provided to RIMCo by BNY or other brokers include, but are not limited to (1) advice either directly or indirectly through publications or writings as to the advisability of investing in, purchasing or selling securities and the availability of securities or of purchasers or sellers of securities; (2) analysis and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy and the performance of accounts; and/or (3) services that are required in connection therewith. Research services will generally be obtained from unaffiliated third parties at market rates, which may be included in commission costs. 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.
BNY may also rebate to the Funds a portion of commissions earned on certain trading by the Funds through BNY 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 Money Commission once RIMCo’s research budget has been met, as determined annually in the Soft Money Commission budgeting process.
Additionally, the Funds paid brokerage commissions to non-affiliated brokers who provided brokerage and research services to the adviser.
| 5. | | 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 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, 2012, the Funds have invested $2,623,560,130 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 $968,093,670 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 Fund | | | 0.55 | % | | | .05 | % |
Russell U.S. Quantitative Equity Fund | | | 0.55 | | | | .05 | |
Russell U.S. Growth Fund | | | 0.80 | | | | .05 | |
Russell U.S. Value Fund | | | 0.70 | | | | .05 | |
Russell U.S. Large Cap Equity Fund | | | 0.70 | | | | .05 | |
Russell U.S. Mid Cap Equity Fund | | | 0.80 | | | | .05 | |
Russell U.S. Small Cap Equity Fund | | | 0.70 | | | | .05 | |
Russell International Developed Markets | | | 0.70 | | | | .05 | |
Russell Global Equity Fund | | | 0.95 | | | | .05 | |
Russell Emerging Markets Fund | | | 1.15 | | | | .05 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 0.70 | | | | .05 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 0.98 | | | | .05 | |
Russell Global Opportunistic Credit Fund | | | 1.00 | | | | .05 | |
Russell Strategic Bond Fund | | | 0.50 | | | | .05 | |
Russell Investment Grade Bond Fund | | | 0.25 | | | | .05 | |
Russell Short Duration Bond Fund | | | 0.45 | | | | .05 | |
Russell Tax Exempt Bond Fund | | | 0.30 | | | | .05 | |
Russell Commodity Strategies Fund | | | 1.25 | | | | .05 | |
Russell Global Infrastructure Fund | | | 1.25 | | | | .05 | |
Russell Global Real Estate Securities Fund | | | 0.80 | | | | .05 | |
Russell Money Market Fund | | | 0.20 | | | | .05 | |
| * | Administrative fees may be less than .05% due to fee breakpoints implemented on July 1, 2011. |
| | |
| Notes to Financial Statements | | 445 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
The following shows the respective totals for advisory and administrative fees for the period ended April 30, 2012.
| | | | | | | | |
| | | Advisory | | | Administrative | |
Russell U.S. Core Equity Fund | | $ | 10,236,332 | | | $ | 915,126 | |
Russell U.S. Quantitative Equity Fund | | | 7,933,461 | | | | 716,242 | |
Russell U.S. Growth Fund | | | 259,632 | | | | 16,227 | |
Russell U.S. Value Fund | | | 307,143 | | | | 21,939 | |
Russell U.S. Large Cap Equity Fund | | | 283,387 | | | | 20,242 | |
Russell U.S. Mid Cap Equity Fund | | | 207,356 | | | | 12,960 | |
Russell U.S. Small Cap Equity Fund | | | 5,142,755 | | | | 367,340 | |
Russell International Developed Markets Fund | | | 16,043,410 | | | | 1,119,739 | |
Russell Global Equity Fund | | | 13,036,727 | | | | 682,893 | |
Russell Emerging Markets Fund | | | 10,417,710 | | | | 452,944 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 1,592,165 | | | | 113,726 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 751,117 | | | | 38,322 | |
Russell Global Opportunistic Credit Fund | | | 4,001,866 | | | | 200,093 | |
Russell Strategic Bond Fund | | | 19,412,043 | | | | 1,906,302 | |
Russell Investment Grade Bond Fund | | | 2,214,566 | | | | 442,913 | |
Russell Short Duration Bond Fund | | | 2,490,492 | | | | 276,721 | |
Russell Tax Exempt Bond Fund | | | 943,694 | | | | 157,282 | |
Russell Commodity Strategies Fund | | | 9,167,669 | | | | 366,707 | |
Russell Global Infrastructure Fund | | | 5,320,530 | | | | 212,821 | |
Russell Global Real Estate Securities Fund | | | 6,249,537 | | | | 390,596 | |
Russell Money Market Fund | | | 188,433 | | | | 47,115 | |
For the Russell U.S. Growth Fund, RIMCo has contractually agreed, at least until February 28, 2013, 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 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, 2012 was $92,840. There were no reimbursements for the period ended April 30, 2012.
For the Russell U.S. Value Fund, RIMCo is currently waiving 0.05% of its 0.70% advisory fee. The total amount waived for the period ended April 30, 2012 was $21,939.
For the Russell U.S. Large Cap Equity Fund, RIMCo has contractually agreed, at least until February 28, 2013, to waive up to the full amount of its 0.70% advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses exceed 0.67% of the average daily net assets of that Fund on an annual basis. This waiver may not be terminated during the relevant period except with Board approval. Direct Fund-level expenses for the Russell U.S. Large Cap Equity 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, 2012 was $158,823. There were no reimbursements for the period ended April 30, 2012.
For the Russell U.S. Mid Cap Equity Fund, RIMCo has contractually agreed, at least until February 28, 2013, 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 0.77% 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. Mid Cap Equity 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, 2012 was $110,738. There were no reimbursements for the period ended April 30, 2012.
For the Russell Tax-Managed U.S. Mid & Small Cap Fund, RIMCo has contractually agreed, at least until February 29, 2013, 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, 2012 was $60,906. There were no reimbursements for the period ended April 30, 2012.
| | | | |
| | 446 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
For the Russell Global Opportunistic Credit Fund, RIMCo has contractually agreed, at least until February 28, 2013, to waive 0.27% of its 1.00% 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, 2012 was $1,120,522.
From November 1, 2011 through February 29, 2012, RIMCo had contractually waived 0.01% of its 0.50% advisory fee for the Russell Strategic Bond Fund. The total amount of the waiver for the period ended April 30, 2012 was $255,234.
For the Russell Short Duration Bond Fund, RIMCo has contractually agreed, at least until February 28, 2013, to waive 0.05% of its 0.45% 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 3, 2012 was $276,721.
For the Russell Commodity Strategies Fund, RIMCo has contractually agreed, at least until February 28, 2013, to waive 0.25% of its 1.25% advisory fee. The Subsidiary pays RIMCo an advisory fee and pays RFSC an administrative fee at the annual rates of 1.25% and 0.05%, respectively, of its net assets (collectively, the “Subsidiary Fees”). Until February 28, 2013, RIMCo and RFSC have contractually agreed to waive all or a portion of the advisory fees and administrative fees paid by the Fund to RIMCo and RFSC, respectively, in an amount equal to the amount of the Subsidiary Fees received by RIMCo, if any. These waivers may not be terminated during the relevant period except with Board approval. The total amount of the waiver for the period ended April 30, 2012 was $3,239,691.
For the Russell Global Infrastructure Fund, RIMCo has contractually agreed, at least until February 28, 2013, to waive 0.25% of its 1.25% 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, 2012 was $1,447,184.
For the Russell Money Market Fund, RIMCo has contractually agreed, at least until February 28, 2013, 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, 2012 was $141,091.
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. The total amount of the waiver for the period ended April 30, 2012 was $186,064.
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, 2012, the amount available for recoupment was $186,063.85.
RIMCo does not have the ability to recover amounts waived or reimbursed from previous periods except the recoupment referenced above.
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, 2012 were as follows:
| | | | |
| | | Amount | |
| | | | |
Russell U.S. Core Equity Fund | | $ | 1,943,019 | |
Russell U.S. Quantitative Equity Fund | | | 1,453,516 | |
Russell U.S. Growth Fund | | | 47,927 | |
Russell U.S. Value Fund | | | 70,083 | |
Russell U.S. Large Cap Equity Fund | | | 72,870 | |
Russell U.S. Mid Cap Equity Fund | | | 46,655 | |
Russell U.S. Small Cap Equity Fund | | | 827,337 | |
Russell International Developed Markets Fund | | | 2,311,406 | |
Russell Global Equity Fund | | | 1,397,943 | |
Russell Emerging Markets Fund | | | 1,217,859 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 409,013 | |
| | |
| Notes to Financial Statements | | 447 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | |
| | | Amount | |
| | | | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | $ | 137,584 | |
Russell Global Opportunistic Credit Fund | | | 416,051 | |
Russell Strategic Bond Fund | | | 4,045,711 | |
Russell Investment Grade Bond Fund | | | 904,349 | |
Russell Short Duration Bond Fund | | | 729,930 | |
Russell Tax Exempt Bond Fund | | | 565,139 | |
Russell Commodity Strategies Fund | | | 674,430 | |
Russell Global Infrastructure Fund | | | 471,378 | |
Russell Global Real Estate Securities Fund | | | 1,080,327 | |
Russell Money Market Fund | | | 167,564 | |
Effective March 1, 2011, RFSC had contractually agreed to waive, at least through February 29, 2012, a portion of its transfer agency fees as follows:
| | | | |
| Funds/Classes | | Waivers | |
| | | | |
Russell U.S. Core Equity Fund-Class E | | | 0.10 | % |
Russell U.S. Quantitative Equity Fund-Class E | | | 0.10 | |
Russell U.S. Growth Fund-Class I | | | 0.05 | |
Russell U.S. Small Cap Equity Fund-Class E | | | 0.10 | |
Russell International Developed Markets Fund-Class E | | | 0.10 | |
Russell Tax-Managed U.S. Large Cap Fund-Class C, E & S | | | 0.08 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund-Class C, E & S | | | 0.03 | |
Russell Strategic Bond Fund-Class A, C & S | | | 0.02 | |
Russell Strategic Bond Fund-Class E | | | 0.10 | |
Russell Investment Grade Bond Fund-Class E | | | 0.10 | |
Russell Short Duration Bond Fund-Class A, C, E & S | | | 0.08 | |
Russell Tax Exempt Bond Fund-Class C, E & S | | | 0.08 | |
Russell Money Market Fund-Class A | | | 0.01 | |
Russell Money Market Fund-Class S | | | 0.12 | |
Effective March 1, 2012, RFSC has contractually agreed to waive, at least through February 28, 2013, a portion of its transfer agency fees as follows:
| | | | |
| Funds/Classes | | Waivers | |
| | | | |
Russell U.S. Core Equity Fund-Class E | | | 0.04 | % |
Russell U.S. Quantitative Equity Fund-Class E | | | 0.04 | |
Russell U.S. Growth Fund-Class I | | | 0.05 | |
Russell U.S. Small Cap Equity Fund-Class E | | | 0.04 | |
Russell International Developed Markets Fund-Class E | | | 0.04 | |
Russell Tax-Managed U.S. Large Cap Fund-Class C, E & S | | | 0.04 | |
Russell Tax-Managed U.S. Small Cap Fund-Class C, E & S | | | 0.03 | |
Russell Global Opportunistic Credit Fund-Class A, C, E & S | | | 0.09 | |
Russell Strategic Bond Fund-Class A, C & S | | | 0.02 | |
Russell Strategic Bond Fund-Class E | | | 0.04 | |
Russell Investment Grade Bond Fund-Class E | | | 0.04 | |
Russell Short Duration Bond Fund-Class A, C, E & S | | | 0.08 | |
Russell Tax Exempt Bond Fund-Class C, E & S | | | 0.04 | |
Russell Global Infrastructure Fund-Class A, C, E & S | | | 0.02 | |
Russell Money Market Fund-Class A | | | 0.01 | |
Russell Money Market Fund-Class S | | | 0.12 | |
For the period ended April 30, 2012, the total transfer agent fee waivers are as follows:
| | | | |
| | | Amount | |
| | | | |
Russell U.S. Core Equity Fund | | $ | 19,672 | |
Russell U.S. Quantitative Equity Fund | | | 16,309 | |
Russell U.S. Growth Fund | | | 6,452 | |
Russell U.S. Small Cap Equity Fund | | | 7,983 | |
Russell International Developed Markets Fund | | | 25,841 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 90,308 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 22,773 | |
Russell Global Opportunistic Credit Fund | | | 204,100 | |
| | | | |
| | 448 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | |
| | | Amount | |
| | | | |
Russell Strategic Bond Fund | | $ | 400,217 | |
Russell Investment Grade Bond Fund | | | 13,167 | |
Russell Short Duration Bond Fund | | | 321,464 | |
Russell Tax Exempt Bond Fund | | | 124,461 | |
Russell Global Infrastructure Fund | | | 51,535 | |
Russell Money Market Fund | | | 158,255 | |
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 RIC.
The Investment Company has a distribution plan pursuant to Rule 12b-1 (the “Plan”) under the Investment Company Act of 1940. 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 September 30, 2012. This suspension may be extended, at the discretion of the President or Treasurer of RIC for the three-month period commencing on October 1, 2012.
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. For the period ended April 30, 2012, the Distributor retained the following amounts in sales charges:
| | | | |
| Contingent Deferred Sales Charges | | Class A Shares | |
| | | | |
Russell International Developed Markets Fund | | $ | 994 | |
Russell Global Equity Fund | | | 1,082 | |
Russell Emerging Markets Fund | | | 402 | |
Russell Tax Managed U.S. Large Cap Fund | | | 180 | |
Russell Global Opportunistic Fund | | | 610 | |
Russell Strategic Bond Fund | | | 895 | |
Russell Investment Grade Bond Fund | | | 3,586 | |
Russell Short Duration Bond Fund | | | 21,030 | |
Russell Commodity Strategies Fund | | | 720 | |
Russell Global Infrastructure Fund | | | 1,475 | |
Russell Global Real Estate Securities Fund | | | 246 | |
For the period ended April 30, 2012, the sales commissions paid to the selling agents for the sales of Class A shares were as follows:
| | | | | | | | |
| | | Aggregate
Font-End
Sales Charges
on Class A Shares | | | Class A Front-End
Sales Charges
Retained by
Distributor | |
| | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 33,375 | | | $ | 6,077 | |
Russell U.S. Quantitative Equity Fund | | | 14,179 | | | | 2,538 | |
Russell U.S. Large Cap Equity Fund | | | 514 | | | | 105 | |
Russell U.S. Mid Cap Equity Fund | | | 1,540 | | | | 316 | |
Russell U.S. Small Cap Equity Fund | | | 15,221 | | | | 2,521 | |
| | |
| Notes to Financial Statements | | 449 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
| | | Aggregate
Font-End
Sales Charges
on Class A Shares | | | Class A Front-End
Sales Charges
Retained by
Distributor | |
| | | | | | | | |
Russell International Developed Markets Fund | | $ | 23,502 | | | $ | 4,479 | |
Russell Global Equity Fund | | | 18,450 | | | | 3,213 | |
Russell Emerging Markets Fund | | | 24,854 | | | | 4,183 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 3,011 | | | | 539 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 2,108 | | | | 356 | |
Russell Global Opportunistic Credit Fund | | | 8,380 | | | | 1,695 | |
Russell Strategic Bond Fund | | | 52,252 | | | | 10,487 | |
Russell Investment Grade Bond Fund Russell Short Duration Bond Fund Russell Tax Exempt Bond Fund | |
| 26,996
23,931 12,960 |
| |
| 5,472
4,760 2,676 |
|
Russell Commodity Strategies Fund | | | 34,818 | | | | 5,434 | |
Russell Global Infrastructure Fund | | | 16,572 | | | | 2,735 | |
Russell Global Real Estate Securities Fund | | | 36,536 | | | | 5,208 | |
Accrued Fees Payable to Affiliates
Accrued fees payable to affiliates for the period ended April 30, 2012, 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.
Large Cap
Equity Fund | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 1,691,282 | | | $ | 1,350,527 | | | $ | 27,501 | | | $ | 47,734 | | | $ | 77,998 | | | |
Administration fees | | | 151,188 | | | | 121,759 | | | | 2,803 | | | | 3,672 | | | | 7,539 | | | |
Distribution fees | | | 43,637 | | | | 32,854 | | | | 3,417 | | | | 5,069 | | | | 262 | | | |
Shareholder servicing fees | | | 26,087 | | | | 21,189 | | | | 1,980 | | | | 2,122 | | | | 71 | | | |
Transfer agent fees | | | 320,090 | | | | 249,795 | | | | 7,315 | | | | 11,818 | | | | 29,756 | | | |
Trustee fees | | | 26,149 | | | | 19,655 | | | | 660 | | | | 965 | | | | 4,076 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | $ | 2,258,433 | | | $ | 1,795,779 | | | $ | 43,676 | | | $ | 71,380 | | | $ | 119,702 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | Russell U.S. Mid Cap
Equity Fund | | | Russell U.S. Small
Cap Equity Fund | | | Russell
International
Developed
Markets Fund | | | Russell
Global Equity
Fund | | | Russell
Emerging
Markets Fund | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 40,959 | | | $ | 869,787 | | | $ | 2,704,484 | | | $ | 2,233,704 | | | $ | 1,794,873 | | | |
Administration fees | | | 4,591 | | | | 62,127 | | | | 188,656 | | | | 116,810 | | | | 78,038 | | | |
Distribution fees | | | 127 | | | | 21,409 | | | | 33,997 | | | | 10,563 | | | | 26,360 | | | |
Shareholder servicing fees | | | 30 | | | | 11,128 | | | | 27,993 | | | | 12,485 | | | | 20,349 | | | |
Transfer agent fees | | | 18,158 | | | | 140,777 | | | | 390,805 | | | | 242,025 | | | | 210,932 | | | |
Trustee fees | | | 763 | | | | 7,018 | | | | 51,026 | | | | 9,992 | | | | 7,696 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | $ | 64,628 | | | $ | 1,112,246 | | | $ | 3,396,961 | | | $ | 2,625,579 | | | $ | 2,138,248 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | Russell Tax-Managed
U.S. Large Cap Fund | | | Russell
Tax-Managed
U.S. Mid & Small
Cap Fund | | | Russell Global
Opportunistic
Credit Fund | | | Russell Strategic
Bond Fund | | | Russell
Investment
Grade Bond
Fund | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 280,603 | | | $ | 121,375 | | | $ | 503,449 | | | $ | 3,289,559 | | | $ | 376,793 | | | |
Administration fees | | | 20,043 | | | | 6,557 | | | | 34,962 | | | | 322,754 | | | | 75,358 | | | |
Distribution fees | | | 6,784 | | | | 4,677 | | | | 4,309 | | | | 85,946 | | | | 23,094 | | | |
Shareholder servicing fees | | | 6,405 | | | | 2,295 | | | | 4,103 | | | | 53,131 | | | | 15,757 | | | |
Transfer agent fees | | | 56,130 | | | | 19,689 | | | | 36,961 | | | | 627,468 | | | | 153,901 | | | |
Trustee fees | | | 1,734 | | | | 764 | | | | — | | | | 24,108 | | | | 8,326 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | $ | 371,699 | | | $ | 155,357 | | | $ | 583,784 | | | $ | 4,402,966 | | | $ | 653,229 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | 450 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Russell Short
Duration Bond Fund | | | Russell Tax
Exempt Bond
Fund | | | Russell
Commodity
Strategies
Fund | | | Russell
Global
Infrastructure
Fund | | | Russell
Global Real
Estate
Securities
Fund | | | Russell
Money
Market Fund | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 362,113 | | | $ | 162,856 | | | $ | 978,899 | | | $ | 666,815 | | | $ | 1,070,066 | | | $ | 327,303 | |
Administration fees | | | 45,264 | | | | 27,142 | | | | 51,015 | | | | 36,638 | | | | 66,879 | | | | 7,378 | |
Distribution fees | | | 81,063 | | | | 18,236 | | | | 12,803 | | | | 3,762 | | | | 31,055 | | | | — | |
Shareholder servicing fees | | | 28,548 | | | | 12,745 | | | | 6,166 | | | | 4,249 | | | | 15,491 | | | | — | |
Transfer agent fees | | | 68,345 | | | | 76,300 | | | | 111,815 | | | | 72,930 | | | | 185,627 | | | | 1,481 | |
Trustee fees | | | 3,626 | | | | 2,461 | | | | 341 | | | | — | | | | 8,501 | | | | 2,527 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 588,959 | | | $ | 299,740 | | | $ | 1,161,039 | | | $ | 784,394 | | | $ | 1,377,619 | | | $ | 338,689 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Affiliated Brokerage Commissions
The Funds 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.
Amounts retained by RIS for the period ended April 30, 2012 (unaudited), were as follows:
| | | | | | |
| Affiliated Broker | | Fund Name | | 2012 | |
RIMCo | | | | | | |
| | Russell U.S. Core Equity Fund | | $ | 551,610 | |
| | Russell U.S. Quantitative Equity Fund | | | 98,280 | |
| | Russell U.S. Growth Fund | | | 753 | |
| | Russell U.S. Value Fund | | | 1,193 | |
| | Russell U.S. Large Cap Equity Fund | | | 51,884 | |
| | Russell U.S. Mid Cap Equity Fund | | | 42,038 | |
| | Russell U.S. Small Cap Equity Fund | | | 631,873 | |
| | Russell International Developed Markets Fund | | | 37,204 | |
| | Russell Global Equity Fund | | | 101,827 | |
| | Russell Emerging Markets Fund | | | 150,493 | |
| | Russell Tax-Managed U.S. Large Cap Fund | | | 76,413 | |
| | Russell Investment Grade Bond Fund | | | 219,676 | |
| | Russell Global Infrastructure Fund | | | 6,016 | |
| | Russell Global Real Estate Securities Fund | | | 31,839 | |
Board of Trustees
The Russell Fund Complex consists of RIC, which has 38 funds, and Russell Investment Funds (“RIF”), which has 10 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 $75,000 per year; each of its interested Trustees a retainer of $65,000 per year; and each Trustee $6,500 for each regularly scheduled meeting attended in person (effective January 1, 2012, $7,000) and $2,500 (effective January 1, 2012, $3,500) for each special meeting and the Annual 38a-1 meeting attended in person, and 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 regularly scheduled and special meetings by phone instead of receiving the full fee had the member attended in person (except for telephonic meetings called pursuant to the Funds’ valuation and pricing procedures) 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 $15,000 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 $75,000. Ms. Cavanaugh is not compensated by the Russell Fund Complex for her service as a Trustee.
| | |
| Notes to Financial Statements | | 451 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
At April 30, 2012, 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 | | 10/31/2014 | | | 10/31/2015 | | | 10/31/2016 | | | 10/31/2017 | | | 10/31/2018 | |
| | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | — | | | $ | — | | | $ | 114,056,075 | | | $ | 782,077,676 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | — | | | | — | | | | — | | | | 909,216,050 | | | | — | |
Russell U.S. Growth Fund | | | — | | | | — | | | | — | | | | 20,138,906 | | | | — | |
Russell U.S. Value Fund | | | — | | | | — | | | | 47,169,656 | | | | 60,819,183 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | — | | | | — | | | | — | | | | 262,088,296 | | | | — | |
Russell International Developed Markets Fund | | | — | | | | 9,122,298 | | | | 404,357,668 | | | | 790,159,939 | | | | 51,503,855 | |
Russell Global Equity Fund | | | — | | | | — | | | | — | | | | 208,404,521 | | | | — | |
Russell Tax-Managed U.S. Large Cap Fund | | | — | | | | — | | | | 42,627,479 | | | | 43,361,512 | | | | — | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | — | | | | — | | | | — | | | | 10,062,473 | | | | — | |
Russell Global Opportunistic Credit Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
Russell Short Duration Bond Fund | | | — | | | | — | | | | — | | | | 5,471,763 | | | | — | |
Russell Tax Exempt Bond Fund | | | 295,599 | | | | 1,197,042 | | | | 4,001,028 | | | | — | | | | — | |
Russell Global Real Estate Securities Fund | | | — | | | | — | | | | — | | | | 30,091,561 | | | | — | |
Russell Money Market Fund | | | — | | | | — | | | | 1,389 | | | | — | | | | — | |
| | | | | | | | |
| | |
Funds | | 10/31/19 | | | Totals | |
| | | | | | | | |
Russell U.S. Core Equity Fund | | $ | — | | | $ | 896,133,751 | |
Russell U.S. Quantitative Equity Fund | | | — | | | | 909,216,050 | |
Russell U.S. Growth Fund | | | — | | | | 20,138,906 | |
Russell U.S. Value Fund | | | — | | | | 107,988,839 | |
Russell U.S. Small Cap Equity Fund | | | — | | | | 262,088,296 | |
Russell International Developed Markets Fund | | | — | | | | 1,255,143,760 | |
Russell Global Equity Fund | | | — | | | | 208,404,521 | |
Russell Tax-Managed U.S. Large Cap Fund | | | — | | | | 85,988,991 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | — | | | | 10,062,473 | |
Russell Global Opportunistic Credit Fund | | | 1,937,954 | | | | 1,937,954 | |
Russell Short Duration Bond Fund | | | 324,085 | | | | 5,795,848 | |
Russell Tax Exempt Bond Fund | | | 512,942 | | | | 6,006,611 | |
Russell Global Real Estate Securities Fund | | | — | | | | 30,091,561 | |
Russell Money Market Fund | | | 2,994 | | | | 4,383 | |
Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
At April 30, 2012, 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 | | | Russell U.S. Large
Cap Equity Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 3,251,098,469 | | | $ | 2,814,136,200 | | | $ | 55,420,735 | | | $ | 82,151,399 | | | $ | 180,221,303 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 592,308,555 | | | $ | 490,462,447 | | | $ | 14,703,898 | | | $ | 10,260,823 | | | $ | 9,077,473 | |
Unrealized Depreciation | | | (57,118,120 | ) | | | (58,155,282 | ) | | | (679,901 | ) | | | (1,929,919 | ) | | | (2,467,068 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 535,190,435 | | | $ | 432,307,165 | | | $ | 14,023,997 | | | $ | 8,330,904 | | | $ | 6,610,405 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Russell U.S. Mid
Cap Equity Fund | | | Russell U.S. Small
Cap Equity Fund | | | Russell
International
Developed Markets
Fund | | | Russell Global
Equity Fund | | | Russell Emerging
Markets Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 111,573,173 | | | $ | 1,479,697,796 | | | $ | 4,838,901,661 | | | $ | 2,761,586,797 | | | $ | 1,838,782,851 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 5,145,911 | | | $ | 204,437,011 | | | $ | 318,206,099 | | | $ | 342,119,072 | | | $ | 304,281,494 | |
Unrealized Depreciation | | | (2,775,908 | ) | | | (39,867,501 | ) | | | (181,492,946 | ) | | | (143,491,394 | ) | | | (81,116,355 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 2,370,003 | | | $ | 164,569,510 | | | $ | 136,713,153 | | | $ | 198,627,678 | | | $ | 223,165,139 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | 452 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | Russell
Tax-Managed U.S.
Large Cap Fund | | | Russell
Tax-Managed
U.S. Mid &
Small Cap Fund | | | Russell Global
Opportunistic Credit
Fund | | | Russell Strategic
Bond Fund | | | Russell Investment
Grade Bond Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 376,645,405 | | | $ | 130,358,632 | | | $ | 842,839,509 | | | $ | 8,709,421,050 | | | $ | 2,186,374,108 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 128,770,596 | | | $ | 46,574,260 | | | $ | 24,404,717 | | | $ | 268,089,249 | | | $ | 52,658,428 | |
Unrealized Depreciation | | | (8,182,616 | ) | | | (3,597,061 | ) | | | (15,002,396 | ) | | | (150,724,486 | ) | | | (22,577,746 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 120,587,980 | | | $ | 42,977,199 | | | $ | 9,402,321 | | | $ | 117,364,763 | | | $ | 30,080,682 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | Russell Short
Duration Bond
Fund | | | Russell Tax
Exempt Bond
Fund | | | Russell Commodity
Strategies Fund | | | Russell Global
Infrastructure
Fund | | | Russell Global
Real Estate
Securities Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 1,397,507,834 | | | $ | 627,487,293 | | | $ | 1,223,799,443 | | | $ | 916,911,327 | | | $ | 1,494,170,951 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 14,232,306 | | | $ | 39,420,739 | | | $ | 2,052,409 | | | $ | 67,084,359 | | | $ | 278,775,418 | |
Unrealized Depreciation | | | (28,430,094 | ) | | | (409,216 | ) | | | (29,273,368 | ) | | | (25,556,149 | ) | | | (36,417,515 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | (14,197,788 | ) | | $ | 39,011,523 | | | $ | (27,220,959 | ) | | $ | 41,528,210 | | | $ | 242,357,903 | |
| | | | | | | | | | | | | | | | | | | | |
| 7. | | Fund Share Transactions (amounts in thousands) |
Share transactions for the periods ended April 30, 2012 and October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell U.S. Core Equity Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 84 | | | $ | 2,353 | | | | 323 | | | $ | 8,996 | |
Proceeds from reinvestment of distributions | | | 4 | | | | 112 | | | | 6 | | | | 165 | |
Payments for shares redeemed | | | (167 | ) | | | (4,703 | ) | | | (227 | ) | | | (6,280 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (79 | ) | | | (2,238 | ) | | | 102 | | | | 2,881 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 87 | | | | 2,437 | | | | 148 | | | | 4,097 | |
Proceeds from reinvestment of distributions | | | 3 | | | | 93 | | | | 2 | | | | 45 | |
Payments for shares redeemed | | | (356 | ) | | | (10,142 | ) | | | (812 | ) | | | (22,728 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (266 | ) | | | (7,612 | ) | | | (662 | ) | | | (18,586 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 134 | | | | 3,748 | | | | 650 | | | | 17,920 | |
Proceeds from reinvestment of distributions | | | 9 | | | | 253 | | | | 17 | | | | 473 | |
Payments for shares redeemed | | | (527 | ) | | | (15,152 | ) | | | (1,587 | ) | | | (43,980 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (384 | ) | | | (11,151 | ) | | | (920 | ) | | | (25,587 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,619 | | | | 45,666 | | | | 5,988 | | | | 166,194 | |
Proceeds from reinvestment of distributions | | | 152 | | | | 4,217 | | | | 292 | | | | 7,971 | |
Payments for shares redeemed | | | (9,336 | ) | | | (267,484 | ) | | | (10,733 | ) | | | (299,381 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (7,565 | ) | | | (217,601 | ) | | | (4,453 | ) | | | (125,216 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 6,247 | | | | 177,116 | | | | 16,297 | | | | 454,070 | |
Proceeds from reinvestment of distributions | | | 277 | | | | 7,689 | | | | 453 | | | | 12,342 | |
Payments for shares redeemed | | | (10,425 | ) | | | (298,020 | ) | | | (13,505 | ) | | | (372,368 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3,901 | ) | | | (113,215 | ) | | | 3,245 | | | | 94,044 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,747 | | | | 80,043 | | | | 6,330 | | | | 179,625 | |
Proceeds from reinvestment of distributions | | | 264 | | | | 7,341 | | | | 513 | | | | 14,018 | |
Payments for shares redeemed | | | (6,195 | ) | | | (174,357 | ) | | | (13,784 | ) | | | (380,357 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3,184 | ) | | | (86,973 | ) | | | (6,941 | ) | | | (186,714 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (15,379 | ) | | $ | (438,790 | ) | | | (9,629 | ) | | $ | (259,178 | ) |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 453 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell U.S. Quantitative Equity Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 30 | | | $ | 955 | | | | 106 | | | $ | 3,109 | |
Proceeds from reinvestment of distributions | | | 3 | | | | 76 | | | | 5 | | | | 136 | |
Payments for shares redeemed | | | (64 | ) | | | (1,999 | ) | | | (145 | ) | | | (4,253 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (31 | ) | | | (968 | ) | | | (34 | ) | | | (1,008 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 52 | | | | 1,612 | | | | 86 | | | | 2,540 | |
Proceeds from reinvestment of distributions | | | 2 | | | | 57 | | | | 4 | | | | 102 | |
Payments for shares redeemed | | | (278 | ) | | | (8,733 | ) | | | (754 | ) | | | (22,435 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (224 | ) | | | (7,064 | ) | | | (664 | ) | | | (19,793 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 241 | | | | 7,348 | | | | 386 | | | | 11,303 | |
Proceeds from reinvestment of distributions | | | 7 | | | | 231 | | | | 17 | | | | 492 | |
Payments for shares redeemed | | | (316 | ) | | | (10,102 | ) | | | (1,155 | ) | | | (33,865 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (68 | ) | | | (2,523 | ) | | | (752 | ) | | | (22,070 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 644 | | | | 20,146 | | | | 1,944 | | | | 57,127 | |
Proceeds from reinvestment of distributions | | | 67 | | | | 2,071 | | | | 152 | | | | 4,410 | |
Payments for shares redeemed | | | (2,171 | ) | | | (67,121 | ) | | | (7,090 | ) | | | (209,049 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,460 | ) | | | (44,904 | ) | | | (4,994 | ) | | | (147,512 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 5,178 | | | | 161,448 | | | | 11,341 | | | | 335,422 | |
Proceeds from reinvestment of distributions | | | 219 | | | | 6,792 | | | | 395 | | | | 11,441 | |
Payments for shares redeemed | | | (5,739 | ) | | | (179,627 | ) | | | (8,997 | ) | | | (264,584 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (342 | ) | | | (11,387 | ) | | | 2,739 | | | | 82,279 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 441 | | | | 13,671 | | | | 2,280 | | | | 67,793 | |
Proceeds from reinvestment of distributions | | | 231 | | | | 7,170 | | | | 506 | | | | 14,696 | |
Payments for shares redeemed | | | (4,975 | ) | | | (154,232 | ) | | | (9,992 | ) | | | (298,791 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (4,303 | ) | | | (133,391 | ) | | | (7,206 | ) | | | (216,302 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (6,428 | ) | | $ | (200,237 | ) | | | (10,911 | ) | | $ | (324,406 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | 454 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell U.S. Growth Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 32 | | | $ | 256 | | | | 150 | | | $ | 1,141 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (98 | ) | | | (782 | ) | | | (227 | ) | | | (1,727 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (66 | ) | | | (526 | ) | | | (77 | ) | | | (586 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 68 | | | | 535 | | | | 19 | | | | 158 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (101 | ) | | | (822 | ) | | | (311 | ) | | | (2,543 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (33 | ) | | | (287 | ) | | | (292 | ) | | | (2,385 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 162 | | | | 1,466 | | | | 591 | | | | 4,910 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (620 | ) | | | (5,550 | ) | | | (3,456 | ) | | | (30,895 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (458 | ) | | | (4,084 | ) | | | (2,865 | ) | | | (25,985 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 829 | | | | 7,397 | | | | 918 | | | | 7,731 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (734 | ) | | | (6,528 | ) | | | (1,721 | ) | | | (14,593 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 95 | | | | 869 | | | | (803 | ) | | | (6,862 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (462 | ) | | $ | (4,028 | ) | | | (4,037 | ) | | $ | (35,818 | ) |
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| Russell U.S. Value Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 11 | | | $ | 88 | | | | 81 | | | $ | 646 | |
Proceeds from reinvestment of distributions | | | 3 | | | | 20 | | | | 3 | | | | 25 | |
Payments for shares redeemed | | | (143 | ) | | | (1,143 | ) | | | (365 | ) | | | (2,915 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (129 | ) | | | (1,035 | ) | | | (281 | ) | | | (2,244 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 17 | | | | 139 | | | | 28 | | | | 232 | |
Proceeds from reinvestment of distributions | | | 2 | | | | 12 | | | | 2 | | | | 20 | |
Payments for shares redeemed | | | (53 | ) | | | (439 | ) | | | (330 | ) | | | (2,622 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (34 | ) | | | (288 | ) | | | (300 | ) | | | (2,370 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 252 | | | | 2,055 | | | | 317 | | | | 2,566 | |
Proceeds from reinvestment of distributions | | | 18 | | | | 146 | | | | 52 | | | | 422 | |
Payments for shares redeemed | | | (431 | ) | | | (3,556 | ) | | | (3,418 | ) | | | (28,908 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (161 | ) | | | (1,355 | ) | | | (3,049 | ) | | | (25,920 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 603 | | | | 5,006 | | | | 996 | | | | 8,262 | |
Proceeds from reinvestment of distributions | | | 48 | | | | 390 | | | | 83 | | | | 664 | |
Payments for shares redeemed | | | (1,274 | ) | | | (10,484 | ) | | | (3,023 | ) | | | (24,545 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (623 | ) | | | (5,008 | ) | | | (1,944 | ) | | | (15,619 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (947 | ) | | $ | (7,766 | ) | | | (5,574 | ) | | $ | (46,153 | ) |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 455 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | |
| | | 2012(1) | | | | | |
| Russell U.S. Large Cap Equity Fund | | Shares | | | Dollars | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Class A(1) | | | | | | | | | | | | |
Proceeds from shares sold | | | 24 | | | $ | 241 | | | | | |
Proceeds from reinvestment of distributions | | | — | | | | 1 | | | | | |
Payments for shares redeemed | | | — | | | | — | | | | | |
| | | | | | | | | | | | |
Net increase (decrease) | | | 24 | | | | 242 | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Class C(1) | | | | | | | | | | | | |
Proceeds from shares sold | | | 33 | | | | 337 | | | | | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | | |
Payments for shares redeemed | | | — | | | | — | | | | | |
| | | | | | | | | | | | |
Net increase (decrease) | | | 33 | | | | 337 | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Class S(1) | | | | | | | | | | | | |
Proceeds from shares sold | | | 18,527 | | | | 186,097 | | | | | |
Proceeds from reinvestment of distributions | | | 26 | | | | 270 | | | | | |
Payments for shares redeemed | | | (618 | ) | | | (6,397 | ) | | | | |
| | | | | | | | | | | | |
Net increase (decrease) | | | 17,935 | | | | 179,970 | | | | | |
| | | | | | | | | | | | |
Total increase (decrease) | | | 17,992 | | | $ | 180,549 | | | | | |
| | | | | | | | | | | | |
| | | |
| | | 2012(1) | | | | | |
| Russell U.S. Mid Cap Equity Fund | | Shares | | | Dollars | | | | | |
| | | | | | | | | | | | |
Class A(1) | | | | | | | | | | | | |
Proceeds from shares sold | | | 24 | | | $ | 246 | | | | | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | | |
Payments for shares redeemed | | | — | | | | — | | | | | |
| | | | | | | | | | | | |
Net increase (decrease) | | | 24 | | | | 246 | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Class C(1) | | | | | | | | | | | | |
Proceeds from shares sold | | | 15 | | | | 148 | | | | | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | | |
Payments for shares redeemed | | | — | | | | — | | | | | |
| | | | | | | | | | | | |
Net increase (decrease) | | | 15 | | | | 148 | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Class S(1) | | | | | | | | | | | | |
Proceeds from shares sold | | | 12,183 | | | | 122,142 | | | | | |
Proceeds from reinvestment of distributions | | | 9 | | | | 93 | | | | | |
Payments for shares redeemed | | | (1,046 | ) | | | (10,772 | ) | | | | |
| | | | | | | | | | | | |
Net increase (decrease) | | | 11,146 | | | | 111,463 | | | | | |
| | | | | | | | | | | | |
Total increase (decrease) | | | 11,185 | | | $ | 111,857 | | | | | |
| | | | | | | | | | | | |
| | | | |
| | 456 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell U.S. Small Cap Equity Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 38 | | | $ | 863 | | | | 224 | | | $ | 5,117 | |
Proceeds from reinvestment of distributions | | | — | | | | 5 | | | | 2 | | | | 36 | |
Payments for shares redeemed | | | (83 | ) | | | (1,945 | ) | | | (157 | ) | | | (3,501 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (45 | ) | | | (1,077 | ) | | | 69 | | | | 1,652 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 44 | | | | 997 | | | | 190 | | | | 4,281 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (185 | ) | | | (4,223 | ) | | | (446 | ) | | | (10,067 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (141 | ) | | | (3,226 | ) | | | (256 | ) | | | (5,786 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 99 | | | | 2,231 | | | | 348 | | | | 7,687 | |
Proceeds from reinvestment of distributions | | | 1 | | | | 27 | | | | 4 | | | | 76 | |
Payments for shares redeemed | | | (272 | ) | | | (6,410 | ) | | | (639 | ) | | | (14,465 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (172 | ) | | | (4,152 | ) | | | (287 | ) | | | (6,702 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 364 | | | | 8,492 | | | | 1,829 | | | | 41,176 | |
Proceeds from reinvestment of distributions | | | 27 | | | | 602 | | | | 47 | | | | 1,085 | |
Payments for shares redeemed | | | (1,095 | ) | | | (25,535 | ) | | | (4,273 | ) | | | (99,260 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (704 | ) | | | (16,441 | ) | | | (2,397 | ) | | | (56,999 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,532 | | | | 82,191 | | | | 8,810 | | | | 199,986 | |
Proceeds from reinvestment of distributions | | | 99 | | | | 2,187 | | | | 131 | | | | 2,984 | |
Payments for shares redeemed | | | (4,261 | ) | | | (99,246 | ) | | | (8,192 | ) | | | (185,652 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (630 | ) | | | (14,868 | ) | | | 749 | | | | 17,318 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 316 | | | | 7,307 | | | | 1,699 | | | | 38,468 | |
Proceeds from reinvestment of distributions | | | 102 | | | | 2,245 | | | | 144 | | | | 3,279 | |
Payments for shares redeemed | | | (3,121 | ) | | | (72,161 | ) | | | (6,006 | ) | | | (137,737 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,703 | ) | | | (62,609 | ) | | | (4,163 | ) | | | (95,990 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (4,395 | ) | | $ | (102,373 | ) | | | (6,285 | ) | | $ | (146,507 | ) |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 457 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell International Developed Markets Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 66 | | | $ | 1,874 | | | | 217 | | | $ | 6,841 | |
Proceeds from reinvestment of distributions | | | 11 | | | | 300 | | | | 9 | | | | 282 | |
Payments for shares redeemed | | | (104 | ) | | | (2,969 | ) | | | (186 | ) | | | (5,726 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (27 | ) | | | (795 | ) | | | 40 | | | | 1,397 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 60 | | | | 1,697 | | | | 152 | | | | 4,728 | |
Proceeds from reinvestment of distributions | | | 9 | | | | 236 | | | | 8 | | | | 251 | |
Payments for shares redeemed | | | (285 | ) | | | (8,093 | ) | | | (569 | ) | | | (17,837 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (216 | ) | | | (6,160 | ) | | | (409 | ) | | | (12,858 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 239 | | | | 6,765 | | | | 867 | | | | 26,153 | |
Proceeds from reinvestment of distributions | | | 47 | | | | 1,250 | | | | 38 | | | | 1,193 | |
Payments for shares redeemed | | | (415 | ) | | | (11,772 | ) | | | (874 | ) | | | (26,740 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (129 | ) | | | (3,757 | ) | | | 31 | | | | 606 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,468 | | | | 69,777 | | | | 6,019 | | | | 187,019 | |
Proceeds from reinvestment of distributions | | | 496 | | | | 13,232 | | | | 406 | | | | 12,630 | |
Payments for shares redeemed | | | (4,879 | ) | | | (138,588 | ) | | | (7,454 | ) | | | (233,967 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,915 | ) | | | (55,579 | ) | | | (1,029 | ) | | | (34,318 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 10,902 | | | | 310,187 | | | | 22,121 | | | | 689,136 | |
Proceeds from reinvestment of distributions | | | 1,186 | | | | 31,612 | | | | 783 | | | | 24,296 | |
Payments for shares redeemed | | | (7,947 | ) | | | (225,611 | ) | | | (10,966 | ) | | | (338,451 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 4,141 | | | | 116,188 | | | | 11,938 | | | | 374,981 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,178 | | | | 60,282 | | | | 5,363 | | | | 165,132 | |
Proceeds from reinvestment of distributions | | | 1,215 | | | | 32,365 | | | | 1,013 | | | | 31,487 | |
Payments for shares redeemed | | | (3,777 | ) | | | (109,002 | ) | | | (9,542 | ) | | | (311,265 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (384 | ) | | | (16,355 | ) | | | (3,166 | ) | | | (114,646 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 1,470 | | | $ | 33,542 | | | | 7,405 | | | $ | 215,162 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 458 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Global Equity Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 124 | | | $ | 1,029 | | | | 497 | | | $ | 4,394 | |
Proceeds from reinvestment of distributions | | | 7 | | | | 54 | | | | 3 | | | | 26 | |
Payments for shares redeemed | | | (208 | ) | | | (1,771 | ) | | | (272 | ) | | | (2,313 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (77 | ) | | | (688 | ) | | | 228 | | | | 2,107 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 118 | | | | 1,003 | | | | 555 | | | | 4,900 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (242 | ) | | | (2,079 | ) | | | (317 | ) | | | (2,787 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (124 | ) | | | (1,076 | ) | | | 238 | | | | 2,113 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 419 | | | | 3,535 | | | | 2,128 | | | | 18,581 | |
Proceeds from reinvestment of distributions | | | 36 | | | | 291 | | | | 11 | | | | 99 | |
Payments for shares redeemed | | | (799 | ) | | | (6,918 | ) | | | (736 | ) | | | (6,424 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (344 | ) | | | (3,092 | ) | | | 1,403 | | | | 12,256 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 25,806 | | | | 219,967 | | | | 60,517 | | | | 535,570 | |
Proceeds from reinvestment of distributions | | | 1,506 | | | | 12,065 | | | | 614 | | | | 5,371 | |
Payments for shares redeemed | | | (17,357 | ) | | | (148,351 | ) | | | (23,540 | ) | | | (203,413 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 9,955 | | | | 83,681 | | | | 37,591 | | | | 337,528 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 8,757 | | | | 74,028 | | | | 11,781 | | | | 103,973 | |
Proceeds from reinvestment of distributions | | | 1,600 | | | | 12,819 | | | | 914 | | | | 7,996 | |
Payments for shares redeemed | | | (14,366 | ) | | | (124,673 | ) | | | (21,616 | ) | | | (197,066 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (4,009 | ) | | | (37,826 | ) | | | (8,921 | ) | | | (85,097 | ) |
| | | | | | | | | | | | | | | | �� |
Total increase (decrease) | | | 5,401 | | | $ | 40,999 | | | | 30,539 | | | $ | 268,907 | |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 459 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Emerging Markets Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 116 | | | $ | 2,050 | | | | 443 | | | $ | 8,788 | |
Proceeds from reinvestment of distributions | | | 61 | | | | 992 | | | | 19 | | | | 373 | |
Payments for shares redeemed | | | (166 | ) | | | (2,904 | ) | | | (305 | ) | | | (5,989 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 11 | | | | 138 | | | | 157 | | | | 3,172 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 128 | | | | 2,151 | | | | 422 | | | | 8,037 | |
Proceeds from reinvestment of distributions | | | 103 | | | | 1,580 | | | | 28 | | | | 540 | |
Payments for shares redeemed | | | (344 | ) | | | (5,708 | ) | | | (616 | ) | | | (11,699 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (113 | ) | | | (1,977 | ) | | | (166 | ) | | | (3,122 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 349 | | | | 6,286 | | | | 1,097 | | | | 21,891 | |
Proceeds from reinvestment of distributions | | | 134 | | | | 2,176 | | | | 34 | | | | 690 | |
Payments for shares redeemed | | | (432 | ) | | | (7,670 | ) | | | (559 | ) | | | (10,986 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 51 | | | | 792 | | | | 572 | | | | 11,595 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 11,884 | | | | 209,279 | | | | 26,449 | | | | 528,034 | |
Proceeds from reinvestment of distributions | | | 3,787 | | | | 61,685 | | | | 1,028 | | | | 20,691 | |
Payments for shares redeemed | | | (9,755 | ) | | | (171,041 | ) | | | (12,650 | ) | | | (249,140 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 5,916 | | | | 99,923 | | | | 14,827 | | | | 299,585 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,080 | | | | 18,886 | | | | 3,723 | | | | 72,014 | |
Proceeds from reinvestment of distributions | | | 1,603 | | | | 26,136 | | | | 546 | | | | 11,005 | |
Payments for shares redeemed | | | (2,301 | ) | | | (41,500 | ) | | | (3,169 | ) | | | (66,659 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 382 | | | | 3,522 | | | | 1,100 | | | | 16,360 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 6,247 | | | $ | 102,398 | | | | 16,490 | | | $ | 327,590 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 460 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Tax-Managed U.S. Large Cap Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 47 | | | $ | 974 | | | | 99 | | | $ | 1,978 | |
Proceeds from reinvestment of distributions | | | — | | | | 2 | | | | — | | | | 4 | |
Payments for shares redeemed | | | (9 | ) | | | (188 | ) | | | (2 | ) | | | (37 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 38 | | | | 788 | | | | 97 | | | | 1,945 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 32 | | | | 631 | | | | 54 | | | | 1,039 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (66 | ) | | | (1,320 | ) | | | (189 | ) | | | (3,569 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (34 | ) | | | (689 | ) | | | (135 | ) | | | (2,530 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 127 | | | | 2,657 | | | | 314 | | | | 6,126 | |
Proceeds from reinvestment of distributions | | | — | | | | 9 | | | | 2 | | | | 42 | |
Payments for shares redeemed | | | (195 | ) | | | (4,121 | ) | | | (355 | ) | | | (7,116 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (68 | ) | | | (1,455 | ) | | | (39 | ) | | | (948 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,039 | | | | 41,909 | | | | 5,399 | | | | 106,706 | |
Proceeds from reinvestment of distributions | | | 57 | | | | 1,116 | | | | 72 | | | | 1,407 | |
Payments for shares redeemed | | | (1,965 | ) | | | (40,617 | ) | | | (4,941 | ) | | | (97,664 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 131 | | | | 2,408 | | | | 530 | | | | 10,449 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 67 | | | $ | 1,052 | | | | 453 | | | $ | 8,916 | |
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| Russell Tax-Managed U.S. Mid & Small Cap Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 19 | | | $ | 294 | | | | 50 | | | $ | 741 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (11 | ) | | | (178 | ) | | | (2 | ) | | | (24 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 8 | | | | 116 | | | | 48 | | | | 717 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 37 | | | | 505 | | | | 59 | | | | 796 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (49 | ) | | | (691 | ) | | | (159 | ) | | | (2,108 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (12 | ) | | | (186 | ) | | | (100 | ) | | | (1,312 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 28 | | | | 421 | | | | 80 | | | | 1,158 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (43 | ) | | | (665 | ) | | | (146 | ) | | | (2,188 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (15 | ) | | | (244 | ) | | | (66 | ) | | | (1,030 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 804 | | | | 12,500 | | | | 2,173 | | | | 32,492 | |
Proceeds from reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Payments for shares redeemed | | | (1,067 | ) | | | (16,539 | ) | | | (3,205 | ) | | | (48,660 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (263 | ) | | | (4,039 | ) | | | (1,032 | ) | | | (16,168 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (282 | ) | | $ | (4,353 | ) | | | (1,150 | ) | | $ | (17,793 | ) |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 461 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Global Opportunistic Credit Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 371 | | | $ | 3,682 | | | | 225 | | | $ | 2,296 | |
Proceeds from reinvestment of distributions | | | 17 | | | | 164 | | | | 1 | | | | 4 | |
Payments for shares redeemed | | | (46 | ) | | | (464 | ) | | | (10 | ) | | | (98 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 342 | | | | 3,382 | | | | 216 | | | | 2,202 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 223 | | | | 2,262 | | | | 298 | | | | 3,018 | |
Proceeds from reinvestment of distributions | | | 20 | | | | 189 | | | | 1 | | | | 8 | |
Payments for shares redeemed | | | (69 | ) | | | (688 | ) | | | (30 | ) | | | (302 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 174 | | | | 1,763 | | | | 269 | | | | 2,724 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 144 | | | | 1,461 | | | | 1,454 | | | | 14,771 | |
Proceeds from reinvestment of distributions | | | 78 | | | | 748 | | | | 1 | | | | 2 | |
Payments for shares redeemed | | | (132 | ) | | | (1,337 | ) | | | (183 | ) | | | (1,854 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 90 | | | | 872 | | | | 1,272 | | | | 12,919 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 6,863 | | | | 69,457 | | | | 19,085 | | | | 193,956 | |
Proceeds from reinvestment of distributions | | | 2,616 | | | | 25,214 | | | | 230 | | | | 2,274 | |
Payments for shares redeemed | | | (4,543 | ) | | | (45,887 | ) | | | (3,985 | ) | | | (40,396 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 4,936 | | | | 48,784 | | | | 15,330 | | | | 155,834 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,941 | | | | 29,628 | | | | 1,959 | | | | 19,785 | |
Proceeds from reinvestment of distributions | | | 2,176 | | | | 20,978 | | | | 364 | | | | 3,596 | |
Payments for shares redeemed | | | (2,699 | ) | | | (27,475 | ) | | | (5,777 | ) | | | (58,972 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 2,418 | | | | 23,131 | | | | (3,454 | ) | | | (35,591 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 7,960 | | | $ | 77,932 | | | | 13,633 | | | $ | 138,088 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 462 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Strategic Bond Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,544 | | | $ | 27,955 | | | | 4,307 | | | $ | 47,096 | |
Proceeds from reinvestment of distributions | | | 103 | | | | 1,123 | | | | 275 | | | | 2,973 | |
Payments for shares redeemed | | | (1,226 | ) | | | (13,482 | ) | | | (1,320 | ) | | | (14,395 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,421 | | | | 15,596 | | | | 3,262 | | | | 35,674 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,240 | | | | 13,647 | | | | 1,855 | | | | 20,272 | |
Proceeds from reinvestment of distributions | | | 172 | | | | 1,873 | | | | 427 | | | | 4,621 | |
Payments for shares redeemed | | | (1,376 | ) | | | (15,134 | ) | | | (3,294 | ) | | | (35,954 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 36 | | | | 386 | | | | (1,012 | ) | | | (11,061 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,827 | | | | 19,942 | | | | 3,601 | | | | 39,055 | |
Proceeds from reinvestment of distributions | | | 305 | | | | 3,300 | | | | 748 | | | | 8,046 | |
Payments for shares redeemed | | | (1,644 | ) | | | (17,958 | ) | | | (4,467 | ) | | | (48,529 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 488 | | | | 5,284 | | | | (118 | ) | | | (1,428 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 12,111 | | | | 131,916 | | | | 32,583 | | | | 352,659 | |
Proceeds from reinvestment of distributions | | | 2,843 | | | | 30,664 | | | | 6,661 | | | | 71,452 | |
Payments for shares redeemed | | | (14,216 | ) | | | (154,715 | ) | | | (37,938 | ) | | | (411,197 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 738 | | | | 7,865 | | | | 1,306 | | | | 12,914 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 52,775 | | | | 581,851 | | | | 108,594 | | | | 1,188,901 | |
Proceeds from reinvestment of distributions | | | 7,117 | | | | 77,731 | | | | 13,553 | | | | 147,131 | |
Payments for shares redeemed | | | (34,917 | ) | | | (384,647 | ) | | | (54,129 | ) | | | (593,123 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 24,975 | | | | 274,935 | | | | 68,018 | | | | 742,909 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 13,185 | | | | 143,475 | | | | 22,557 | | | | 243,011 | |
Proceeds from reinvestment of distributions | | | 6,361 | | | | 68,705 | | | | 15,667 | | | | 168,197 | |
Payments for shares redeemed | | | (21,204 | ) | | | (231,360 | ) | | | (48,722 | ) | | | (528,884 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,658 | ) | | | (19,180 | ) | | | (10,498 | ) | | | (117,676 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 26,000 | | | $ | 284,886 | | | | 60,958 | | | $ | 661,332 | |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 463 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Investment Grade Bond Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 240 | | | $ | 5,353 | | | | 178 | | | $ | 3,943 | |
Proceeds from reinvestment of distributions | | | 5 | | | | 117 | | | | 4 | | | | 83 | |
Payments for shares redeemed | | | (52 | ) | | | (1,162 | ) | | | (50 | ) | | | (1,059 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 193 | | | | 4,308 | | | | 132 | | | | 2,967 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 254 | | | | 5,642 | | | | 326 | | | | 7,199 | |
Proceeds from reinvestment of distributions | | | 26 | | | | 557 | | | | 71 | | | | 1,537 | |
Payments for shares redeemed | | | (177 | ) | | | (3,926 | ) | | | (645 | ) | | | (14,167 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 103 | | | | 2,273 | | | | (248 | ) | | | (5,431 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 265 | | | | 5,896 | | | | 870 | | | | 19,158 | |
Proceeds from reinvestment of distributions | | | 38 | | | | 850 | | | | 107 | | | | 2,323 | |
Payments for shares redeemed | | | (466 | ) | | | (10,393 | ) | | | (1,340 | ) | | | (29,642 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (163 | ) | | | (3,647 | ) | | | (363 | ) | | | (8,161 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,051 | | | | 67,774 | | | | 4,622 | | | | 101,988 | |
Proceeds from reinvestment of distributions | | | 381 | | | | 8,410 | | | | 1,020 | | | | 22,170 | |
Payments for shares redeemed | | | (1,689 | ) | | | (37,663 | ) | | | (7,372 | ) | | | (162,106 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,743 | | | | 38,521 | | | | (1,730 | ) | | | (37,948 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 7,609 | | | | 169,562 | | | | 16,275 | | | | 359,201 | |
Proceeds from reinvestment of distributions | | | 685 | | | | 15,103 | | | | 1,208 | | | | 26,282 | |
Payments for shares redeemed | | | (5,359 | ) | | | (119,295 | ) | | | (7,997 | ) | | | (176,385 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 2,935 | | | | 65,370 | | | | 9,486 | | | | 209,098 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,709 | | | | 38,054 | | | | 4,168 | | | | 91,276 | |
Proceeds from reinvestment of distributions | | | 639 | | | | 14,116 | | | | 1,627 | | | | 35,436 | |
Payments for shares redeemed | | | (1,962 | ) | | | (43,803 | ) | | | (8,668 | ) | | | (191,835 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 386 | | | | 8,367 | | | | (2,873 | ) | | | (65,123 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 5,197 | | | $ | 115,192 | | | | 4,404 | | | $ | 95,402 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 464 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Short Duration Bond Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 806 | | | $ | 15,468 | | | | 854 | | | $ | 16,464 | |
Proceeds from reinvestment of distributions | | | 12 | | | | 240 | | | | 23 | | | | 436 | |
Payments for shares redeemed | | | (418 | ) | | | (8,070 | ) | | | (651 | ) | | | (12,539 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 400 | | | | 7,638 | | | | 226 | | | | 4,361 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,669 | | | | 32,006 | | | | 3,167 | | | | 60,865 | |
Proceeds from reinvestment of distributions | | | 28 | | | | 535 | | | | 58 | | | | 1,109 | |
Payments for shares redeemed | | | (1,333 | ) | | | (25,497 | ) | | | (2,939 | ) | | | (56,418 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 364 | | | | 7,044 | | | | 286 | | | | 5,556 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 106 | | | | 2,037 | | | | 387 | | | | 7,470 | |
Proceeds from reinvestment of distributions | | | 6 | | | | 113 | | | | 14 | | | | 281 | |
Payments for shares redeemed | | | (199 | ) | | | (3,831 | ) | | | (664 | ) | | | (12,811 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (87 | ) | | | (1,681 | ) | | | (263 | ) | | | (5,060 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 8,672 | | | | 166,612 | | | | 17,525 | | | | 337,746 | |
Proceeds from reinvestment of distributions | | | 293 | | | | 5,637 | | | | 590 | | | | 11,370 | |
Payments for shares redeemed | | | (8,905 | ) | | | (171,311 | ) | | | (13,123 | ) | | | (252,977 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 60 | | | | 938 | | | | 4,992 | | | | 96,139 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,021 | | | | 19,643 | | | | 5,280 | | | | 101,320 | |
Proceeds from reinvestment of distributions | | | 148 | | | | 2,859 | | | | 269 | | | | 5,200 | |
Payments for shares redeemed | | | (2,037 | ) | | | (39,420 | ) | | | (1,495 | ) | | | (28,811 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (868 | ) | | | 16,918 | | | | 4,054 | | | | 77,709 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (131 | ) | | $ | (2,979 | ) | | | 9,295 | | | $ | 178,705 | |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 465 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Tax Exempt Bond Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 230 | | | $ | 5,261 | | | | 62 | | | $ | 1,376 | |
Proceeds from reinvestment of distributions | | | 2 | | | | 53 | | | | 3 | | | | 61 | |
Payments for shares redeemed | | | (26 | ) | | | (590 | ) | | | (14 | ) | | | (314 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 206 | | | | 4,724 | | | | 51 | | | | 1,123 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 365 | | | | 8,315 | | | | 274 | | | | 6,069 | |
Proceeds from reinvestment of distributions | | | 9 | | | | 210 | | | | 20 | | | | 435 | |
Payments for shares redeemed | | | (192 | ) | | | (4,369 | ) | | | (536 | ) | | | (11,773 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 182 | | | | 4,156 | | | | (242 | ) | | | (5,269 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 330 | | | | 7,551 | | | | 481 | | | | 10,644 | |
Proceeds from reinvestment of distributions | | | 17 | | | | 384 | | | | 37 | | | | 819 | |
Payments for shares redeemed | | | (132 | ) | | | (3,001 | ) | | | (665 | ) | | | (14,753 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 215 | | | | 4,934 | | | | (147 | ) | | | (3,290 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 4,604 | | | | 104,935 | | | | 8,911 | | | | 196,971 | |
Proceeds from reinvestment of distributions | | | 333 | | | | 7,562 | | | | 658 | | | | 14,553 | |
Payments for shares redeemed | | | (2,945 | ) | | | (67,125 | ) | | | (7,271 | ) | | | (160,544 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,992 | | | | 45,372 | | | | 2,298 | | | | 50,980 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 2,595 | | | $ | 59,186 | | | | 1,960 | | | $ | 43,544 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 466 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Commodity Strategies Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 406 | | | $ | 3,958 | | | | 1,874 | | | $ | 21,593 | |
Proceeds from reinvestment of distributions | | | 78 | | | | 741 | | | | 105 | | | | 1,144 | |
Payments for shares redeemed | | | (353 | ) | | | (3,485 | ) | | | (372 | ) | | | (4,142 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 131 | | | | 1,214 | | | | 1,607 | | | | 18,595 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 256 | | | | 2,536 | | | | 1,253 | | | | 14,309 | |
Proceeds from reinvestment of distributions | | | 51 | | | | 491 | | | | 56 | | | | 606 | |
Payments for shares redeemed | | | (223 | ) | | | (2,167 | ) | | | (184 | ) | | | (2,039 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 84 | | | | 860 | | | | 1,125 | | | | 12,876 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 384 | | | | 3,757 | | | | 314 | | | | 3,577 | |
Proceeds from reinvestment of distributions | | | 53 | | | | 507 | | | | 164 | | | | 1,782 | |
Payments for shares redeemed | | | (143 | ) | | | (1,401 | ) | | | (355 | ) | | | (4,008 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 294 | | | | 2,863 | | | | 123 | | | | 1,351 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 13,423 | | | | 132,099 | | | | 33,500 | | | | 384,173 | |
Proceeds from reinvestment of distributions | | | 2,779 | | | | 26,591 | | | | 5,470 | | | | 59,511 | |
Payments for shares redeemed | | | (7,349 | ) | | | (72,298 | ) | | | (10,446 | ) | | | (117,080 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 8,853 | | | | 86,392 | | | | 28,524 | | | | 326,604 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 5,398 | | | | 52,978 | | | | 5,083 | | | | 56,406 | |
Proceeds from reinvestment of distributions | | | 2,134 | | | | 20,427 | | | | 6,220 | | | | 67,672 | |
Payments for shares redeemed | | | (1,427 | ) | | | (14,097 | ) | | | (11,422 | ) | | | (132,155 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 6,105 | | | | 59,308 | | | | (119 | ) | | | (8,077 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 15,467 | | | $ | 150,637 | | | | 31,260 | | | $ | 351,349 | |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 467 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Global Infrastructure Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 92 | | | $ | 947 | | | | 409 | | | $ | 4,330 | |
Proceeds from reinvestment of distributions | | | 3 | | | | 27 | | | | 8 | | | | 78 | |
Payments for shares redeemed | | | (84 | ) | | | (872 | ) | | | (22 | ) | | | (223 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 11 | | | | 102 | | | | 395 | | | | 4,185 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 56 | | | | 584 | | | | 435 | | | | 4,631 | |
Proceeds from reinvestment of distributions | | | 2 | | | | 15 | | | | 8 | | | | 83 | |
Payments for shares redeemed | | | (66 | ) | | | (675 | ) | | | (86 | ) | | | (872 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (8 | ) | | | (76 | ) | | | 357 | | | | 3,842 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 183 | | | | 1,871 | | | | 1,498 | | | | 15,848 | |
Proceeds from reinvestment of distributions | | | 10 | | | | 101 | | | | 25 | | | | 264 | |
Payments for shares redeemed | | | (153 | ) | | | (1,601 | ) | | | (139 | ) | | | (1,433 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 40 | | | | 371 | | | | 1,384 | | | | 14,679 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 8,116 | | | | 84,050 | | | | 24,347 | | | | 256,573 | |
Proceeds from reinvestment of distributions | | | 376 | | | | 3,843 | | | | 1,227 | | | | 12,667 | |
Payments for shares redeemed | | | (4,797 | ) | | | (49,686 | ) | | | (4,474 | ) | | | (45,937 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 3,695 | | | | 38,207 | | | | 21,100 | | | | 223,303 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 606 | | | | 6,250 | | | | 2,195 | | | | 22,866 | |
Proceeds from reinvestment of distributions | | | 293 | | | | 2,996 | | | | 1,260 | | | | 12,996 | |
Payments for shares redeemed | | | (2,229 | ) | | | (23,064 | ) | | | (5,207 | ) | | | (55,583 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,330 | ) | | | (13,818 | ) | | | (1,752 | ) | | | (19,721 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 2,408 | | | $ | 24,786 | | | | 21,484 | | | $ | 226,288 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 468 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 7. | | Fund Share Transactions (amounts in thousands) (continued) |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Russell Global Real Estate Securities Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 63 | | | $ | 2,187 | | | | 203 | | | $ | 7,250 | |
Proceeds from reinvestment of distributions | | | 6 | | | | 213 | | | | 18 | | | | 627 | |
Payments for shares redeemed | | | (106 | ) | | | (3,583 | ) | | | (179 | ) | | | (6,155 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (37 | ) | | | (1,183 | ) | | | 42 | | | | 1,722 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 45 | | | | 1,525 | | | | 134 | | | | 4,666 | |
Proceeds from reinvestment of distributions | | | 8 | | | | 271 | | | | 22 | | | | 747 | |
Payments for shares redeemed | | | (179 | ) | | | (5,972 | ) | | | (380 | ) | | | (13,158 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (126 | ) | | | (4,176 | ) | | | (224 | ) | | | (7,745 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 93 | | | | 3,156 | | | | 363 | | | | 12,776 | |
Proceeds from reinvestment of distributions | | | 8 | | | | 273 | | | | 25 | | | | 855 | |
Payments for shares redeemed | | | (231 | ) | | | (7,830 | ) | | | (432 | ) | | | (14,945 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (130 | ) | | | (4,401 | ) | | | (44 | ) | | | (1,314 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 4,058 | | | | 140,684 | | | | 9,153 | | | | 327,329 | |
Proceeds from reinvestment of distributions | | | 277 | | | | 10,051 | | | | 816 | | | | 28,633 | |
Payments for shares redeemed | | | (5,763 | ) | | | (198,503 | ) | | | (10,096 | ) | | | (357,202 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,428 | ) | | | (47,768 | ) | | | (127 | ) | | | (1,240 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class Y | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 871 | | | | 30,863 | | | | 1,284 | | | | 44,946 | |
Proceeds from reinvestment of distributions | | | 104 | | | | 3,761 | | | | 318 | | | | 11,135 | |
Payments for shares redeemed | | | (1,230 | ) | | | (43,292 | ) | | | (1,724 | ) | | | (64,615 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (255 | ) | | | (8,668 | ) | | | (122 | ) | | | (8,534 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (1,976 | ) | | $ | (66,196 | ) | | | (475 | ) | | $ | (17,111 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | |
| | |
| Russell Money Market Fund | | 2012
On a Constant
Dollar Basis | | | 2011
On a Constant
Dollar Basis | |
| | | | | | | | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from shares sold | | $ | 6,016 | | | $ | 24,424 | |
Proceeds from reinvestment of distributions | | | — | | | | 64 | |
Payments for shares redeemed | | | (17,104 | ) | | | (38,368 | ) |
| | | | | | | | |
Net increase (decrease) | | | (11,088 | ) | | | (13,880 | ) |
| | | | | | | | |
| | | | | | | | |
Class S | | | | | | | | |
Proceeds from shares sold | | | 85,562 | | | | 373,085 | |
Proceeds from reinvestment of distributions | | | — | | | | 213 | |
Payments for shares redeemed | | | (115,854 | ) | | | (484,827 | ) |
| | | | | | | | |
Net increase (decrease) | | | (30,292 | ) | | | (111,529 | ) |
| | | | | | | | |
Total increase (decrease) | | $ | (41,380 | ) | | $ | (125,409 | ) |
| | | | | | | | |
| (1) | For the period February 7, 2012 (commencement of operations) to April 30, 2012. |
| 8. | | Interfund Lending Program |
The Funds have been granted permission from the Securities and Exchange Commission to participate in a joint lending and borrowing facility (the “Credit Facility”). 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. A Fund will lend through the program
| | |
| Notes to Financial Statements | | 469 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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 Fund. The 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 lending fund could result in reduced returns or additional borrowing costs. For the period ended April 30, 2012, the Funds presented herein did not borrow or loan through the interfund lending program.
As of April 30, 2012, 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 | | | 1 | | | | 30.6 | |
Russell U.S. Quantitative Equity Fund | | | 1 | | | | 35.5 | |
Russell U.S. Growth Fund | | | 1 | | | | 42.9 | |
Russell U.S. Value Fund | | | 1 | | | | 35.9 | |
Russell U.S. Mid Cap Equity Fund | | | 1 | | | | 44.9 | |
Russell U.S. Small Cap Equity Fund | | | 1 | | | | 38.1 | |
Russell International Developed Markets Fund | | | 1 | | | | 33.4 | |
Russell Global Equity Fund | | | 2 | | | | 41.7 | |
Russell Emerging Markets Fund | | | 1 | | | | 43.4 | |
Russell Tax-Managed U.S. Large Cap Fund | | | 1 | | | | 64.2 | |
Russell Tax-Managed U.S. Mid & Small Cap Fund | | | 1 | | | | 64.1 | |
Russell Global Opportunistic Credit Fund | | | 3 | | | | 36.4 | |
Russell Strategic Bond Fund | | | 2 | | | | 41.8 | |
Russell Investment Grade Bond Fund | | | 1 | | | | 31.6 | |
Russell Short Duration Bond Fund | | | 1 | | | | 49.9 | |
Russell Tax Exempt Bond Fund | | | 1 | | | | 57.4 | |
Russell Commodity Strategies Fund | | | 3 | | | | 42.7 | |
Russell Global Infrastructure Fund | | | 1 | | | | 38.0 | |
Russell Global Real Estate Securities Fund | | | 1 | | | | 38.7 | |
Russell Money Market Fund | | | 1 | | | | 27.8 | |
| 10. | | Restricted Securities |
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, as amended (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% (other than Russell Money Market Fund) in securities that are illiquid. The Russell Money Market Fund may invest a portion of its net assets not to exceed 5% 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 a Fund’s Schedule of Investments.
Illiquid securities and restricted securities may be priced by the Funds using fair valuation procedures approved by the Board.
| | | | | | | | | | | | | | | | | | | | |
Fund - % of Net Assets
Securities | | Acquisition
Date | | | Principal
Amount ($)
or Shares | | | Cost per
Unit
$ | | | Cost
(000)
$ | | | Market Value
(000)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Russell U.S. Small Cap Equity Fund - 1.7% | | | | | | | | | | | | | | | | | | | | |
Boston Pizza Royalties Income Fund | | | 12/15/11 | | | | 221,000 | | | | 13.43 | | | | 2,969 | | | | 4,087 | |
Cohu, Inc. | | | 03/13/08 | | | | 196,388 | | | | 11.86 | | | | 2,329 | | | | 2,156 | |
Diamond Hill Investment Group, Inc. | | | 12/12/11 | | | | 22,156 | | | | 72.82 | | | | 1,613 | | | | 1,681 | |
Einstein Noah Restaurant Group, Inc. | | | 12/09/11 | | | | 150,700 | | | | 14.08 | | | | 2,121 | | | | 2,132 | |
MDC Partners, Inc. | | | 12/21/11 | | | | 351,255 | | | | 13.17 | | | | 4,627 | | | | 3,625 | |
Overhill Farms, Inc. | | | 12/09/11 | | | | 179,930 | | | | 3.91 | | | | 704 | | | | 817 | |
| | | | |
| | 470 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
Fund - % of Net Assets
Securities | | Acquisition
Date | | | Principal
Amount ($)
or Shares | | | Cost per
Unit
$ | | | Cost
(000)
$ | | | Market Value
(000)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Perficient, Inc. | | | 12/09/11 | | | | 402,069 | | | | 8.36 | | | | 3,363 | | | | 4,829 | |
Premiere Global Services, Inc. | | | 09/21/11 | | | | 542,245 | | | | 8.49 | | | | 4,606 | | | | 4,853 | |
SPS Commerce, Inc. | | | 12/09/11 | | | | 146,621 | | | | 25.45 | | | | 3,741 | | | | 4,079 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 28,259 | |
| | | | | | | | | | | | | | | | | | | | |
Russell International Developed Markets Fund - 0.0% | | | | | | | | | | | | | | | | | | | | |
Chaoda Modern Agriculture Holdings, Ltd. | | | 01/14/11 | | | | 12,120,000 | | | | 0.55 | | | | 6,664 | | | | 703 | |
Hunter Douglas NV | | | 06/02/05 | | | | 3,754 | | | | 56.69 | | | | 213 | | | | 161 | |
Sino-Forest Corp. | | | 08/18/11 | | | | 383,000 | | | | 5.27 | | | | 2,018 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 868 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Global Equity Fund - 0.2% | | | | | | | | | | | | | | | | | | | | |
BrasilAgro - Companhia Brasileira de Propriedades Agricolas | | | 05/28/10 | | | | 373,800 | | | | 4.66 | | | | 1,743 | | | | 1,483 | |
China Hongxing Sports, Ltd. | | | 08/27/10 | | | | 6,320,000 | | | | 0.12 | | | | 764 | | | | 73 | |
Oriental Weavers | | | 07/29/10 | | | | 526,864 | | | | 5.36 | | | | 2,825 | | | | 1,666 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 3,222 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund - 0.2% | | | | | | | | | | | | | | | | | | | | |
Bank of Ayudhya PCL | | | 04/18/11 | | | | 4,543,390 | | | | 0.87 | | | | 3,938 | | | | 4,172 | |
Dabur India, Ltd. | | | 10/25/11 | | | | 1,344,313 | | | | 2.06 | | | | 2,640 | | | | 2,853 | |
Lupin, Ltd. | | | 07/15/11 | | | | 30,501 | | | | 10.56 | | | | 322 | | | | 320 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 7,345 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Global Opportunistic Credit Fund - 4.4% | | | | | | | | | | | | | | | | | | | | |
Ameristar Casinos, Inc. | | | 04/19/12 | | | | 790,000 | | | | 103.00 | | | | 814 | | | | 835 | |
Applied Extrusion Technology Corp. 2nd Lien Term Loan | | | 08/29/11 | | | | 3,519,553 | | | | 100.00 | | | | 3,520 | | | | 3,520 | |
ARS Intermediate Holdings LLC | | | 05/03/11 | | | | 2,143,062 | | | | 98.64 | | | | 2,114 | | | | 2,146 | |
CIT Group, Inc. | | | 04/12/12 | | | | 1,050,000 | | | | 102.24 | | | | 1,074 | | | | 1,079 | |
Evraz Group SA | | | 04/26/12 | | | | 300,000 | | | | 100.38 | | | | 301 | | | | 302 | |
Harbinger Group, Inc. | | | 08/01/11 | | | | 2,000 | | | | 1,000.00 | | | | 2,000 | | | | 2,033 | |
HD Supply, Inc. | | | 04/05/12 | | | | 1,885,000 | | | | 100.10 | | | | 1,887 | | | | 2,024 | |
Intelsat Jackson Holdings SA | | | 04/12/12 | | | | 1,115,000 | | | | 101.75 | | | | 1,134 | | | | 1,162 | |
Levi Strauss & Co. | | | 04/24/12 | | | | 850,000 | | | | 100.00 | | | | 850 | | | | 869 | |
Milk Specialties, Co. | | | 12/22/11 | | | | 1,500,000 | | | | 96.00 | | | | 1,440 | | | | 1,470 | |
Monaco SpinCo, Inc. | | | 04/20/12 | | | | 1,025,000 | | | | 100.20 | | | | 1,027 | | | | 1,061 | |
New Star Metals, Inc. | | | 05/31/11 | | | | 6,750,000 | | | | 100.00 | | | | 6,750 | | | | 6,750 | |
Paperworks Industries, Inc. Term Loan | | | 07/21/11 | | | | 4,461,510 | | | | 100.00 | | | | 4,462 | | | | 4,406 | |
Physiotherapy Associates Holdings, Inc. | | | 04/18/12 | | | | 460,000 | | | | 98.84 | | | | 455 | | | | 472 | |
Radiation Therapy Services, Inc. | | | 04/26/12 | | | | 2,240,000 | | | | 99.54 | | | | 2,230 | | | | 2,217 | |
Sitel LLC / Sitel Finance Corp. | | | 04/10/12 | | | | 3,170,000 | | | | 96.02 | | | | 3,044 | | | | 3,107 | |
Townsquare Radio LLC / Townsquare Radio, Inc. | | | 03/30/12 | | | | 3,330,000 | | | | 99.01 | | | | 3,297 | | | | 3,430 | |
USG Corp. | | | 03/29/12 | | | | 850,000 | | | | 99.28 | | | | 844 | | | | 873 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 37,756 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Strategic Bond Fund - 0.8% | | | | | | | | | | | | | | | | | | | | |
Adam Aircraft Industries, Inc. Term Loan | | | 05/22/07 | | | | 760,489 | | | | 96.83 | | | | 736 | | | | 8 | |
Chatham Light CLO, Ltd. | | | 11/25/09 | | | | 2,913,696 | | | | 92.31 | | | | 2,690 | | | | 2,855 | |
CIT Mortgage Loan Trust | | | 10/05/07 | | | | 3,900,000 | | | | 100.00 | | | | 3,900 | | | | 1,766 | |
CNOOC Finance 2012, Ltd. | | | 04/25/12 | | | | 3,475,000 | | | | 100.00 | | | | 3,475 | | | | 3,478 | |
DG Funding Trust | | | 11/05/03 | | | | 479 | | | | 10,585.30 | | | | 5,070 | | | | 3,583 | |
DIRECTV Holdings LLC / DIRECTV Financing Co., Inc. | | | 04/05/12 | | | | 10,805,000 | | | | 98.54 | | | | 10,647 | | | | 10,756 | |
DNB Bank ASA | | | 03/26/12 | | | | 1,900,000 | | | | 99.91 | | | | 1,898 | | | | 1,920 | |
DT Auto Owner Trust | | | 04/17/12 | | | | 8,920,000 | | | | 99.99 | | | | 8,920 | | | | 8,920 | |
Escrow GM Corp. | | | 04/21/11 | | | | 420,000 | | | | — | | | | — | | | | 105 | |
FDIC Structured Sale Guaranteed Notes | | | 03/05/10 | | | | 3,188,468 | | | | 100.00 | | | | 3,189 | | | | 3,189 | |
Freddie Mac Strips | | | 12/02/09 | | | | 10,581,739 | | | | 7.96 | | | | 842 | | | | 831 | |
FREMF Mortgage Trust | | | 04/17/12 | | | | 1,100,000 | | | | 88.66 | | | | 975 | | | | 978 | |
Pacific Gas & Electric Co. | | | 04/23/12 | | | | 6,700,000 | | | | 99.98 | | | | 6,699 | | | | 6,699 | |
RREF 2012 LT1 LLC | | | 04/05/12 | | | | 2,040,000 | | | | 99.75 | | | | 2,035 | | | | 2,050 | |
SLM Student Loan Trust | | | 04/04/12 | | | | 4,600,000 | | | | 99.99 | | | | 4,600 | | | | 4,625 | |
| | |
| Notes to Financial Statements | | 471 |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
Fund - % of Net Assets
Securities | | Acquisition
Date | | | Principal
Amount ($)
or Shares | | | Cost per
Unit
$ | | | Cost
(000)
$ | | | Market Value
(000)
$ | |
| | | | | | | | | | | | | | | | | | | | |
Vnesheconombank Via VEB Finance PLC | | | 02/02/12 | | | | 5,000,000 | | | | 100.00 | | | | 5,000 | | | | 5,213 | |
Westchester CLO, Ltd. | | | 01/04/11 | | | | 13,010,894 | | | | 89.91 | | | | 11,698 | | | | 11,930 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 68,906 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Investment Grade Bond Fund - 1.6% | | | | | | | | | | | | | | | | | | | | |
Australia & New Zealand Banking Group, Ltd. | | | 06/15/11 | | | | 700,000 | | | | 99.87 | | | | 699 | | | | 700 | |
CoBank ACB | | | 03/23/11 | | | | 70,000 | | | | 55.20 | | | | 3,864 | | | | 3,729 | |
DG Funding Trust | | | 11/05/03 | | | | 392 | | | | 10,587.26 | | | | 4,150 | | | | 2,932 | |
GE Business Loan Trust | | | 04/09/12 | | | | 992,298 | | | | 93.25 | | | | 925 | | | | 921 | |
Metropolitan Life Global Funding I | | | 04/04/12 | | | | 1,900,000 | | | | 99.89 | | | | 1,898 | | | | 1,917 | |
Ras Laffan Liquefied Natural Gas Co., Ltd. III | | | 03/09/10 | | | | 924,430 | | | | 104.52 | | | | 966 | | | | 994 | |
Spectra Energy Capital, LLC | | | 04/09/12 | | | | 17,400,000 | | | | 100.00 | | | | 17,400 | | | | 17,400 | |
Vnesheconombank Via VEB Finance PLC | | | 02/02/12 | | | | 1,300,000 | | | | 100.00 | | | | 1,300 | | | | 1,355 | |
Washington Mutual Mortgage Pass Through Certificates | | | 04/01/05 | | | | 419,673 | | | | 100.00 | | | | 419 | | | | 14 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 29,962 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Short Duration Bond Fund - 0.6% | | | | | | | | | | | | | | | | | | | | |
Bank of Ceylon | | | 04/26/12 | | | | 600,000 | | | | 100.00 | | | | 600 | | | | 606 | |
DG Funding Trust | | | 10/11/06 | | | | 219 | | | | 7,479.07 | | | | 2,308 | | | | 1,638 | |
Educational Services of America, Inc., Series 2012-1 Class A1 | | | 03/01/12 | | | | 1,500,000 | | | | 100.00 | | | | 1,500 | | | | 1,500 | |
Export-Import Bank of Korea | | | 03/15/12 | | | | 1,600,000 | | | | 99.58 | | | | 1,600 | | | | 1,593 | |
FDIC Structured Sale Guaranteed Notes | | | 03/05/10 | | | | 531,411 | | | | 100.00 | | | | 531 | | | | 532 | |
Gulf Stream Compass CLO, Ltd., Series 2006-2A Class A2 | | | 03/06/12 | | | | 3,958,650 | | | | 97.44 | | | | 3,839 | | | | 3,857 | |
RREF 2012 LT1 LLC | | | 04/05/12 | | | | 1,000,000 | | | | 99.75 | | | | 997 | | | | 1,005 | |
SLM Student Loan Trust | | | 04/04/12 | | | | 950,000 | | | | 99.99 | | | | 950 | | | | 955 | |
Turkiye Vakiflar Bankasi Tao | | | 04/18/12 | | | | 2,100,000 | | | | 98.90 | | | | 2,077 | | | | 2,096 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 13,782 | |
| | | | | | | | | | | | | | | | | | | | |
Russell Global Real Estate Securities Fund - 0.0% | | | | | | | | | | | | | | | | | | | | |
BGP Holdings PLC | | | 08/06/09 | | | | 4,619,419 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Russell Money Market Fund - 2.2% | | | | | | | | | | | | | | | | | | | | |
AID to INH Portugal Guaranteed Notes, weekly demand | | | 05/06/94 | | | | 3,750,000 | | | | 100.48 | | | | 3,768 | | | | 3,768 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 3,768 | |
| | | | | | | | | | | | | | | | | | | | |
Management has evaluated events and/or transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustments of the financial statements or additional disclosures except the following:
On May 1, 2012, the Board declared the following dividends payable from net investment income. Dividends were paid on May 3, 2012, to shareholders of record on May 2, 2012.
| | | | |
| Fund | | Net Investment
Income | |
| | | | |
Russell Strategic Bond Fund - Class A | | $ | 0.0240 | |
Russell Strategic Bond Fund - Class C | | | 0.0171 | |
Russell Strategic Bond Fund - Class E | | | 0.0242 | |
Russell Strategic Bond Fund - Class I | | | 0.0269 | |
Russell Strategic Bond Fund - Class S | | | 0.0263 | |
Russell Strategic Bond Fund - Class Y | | | 0.0278 | |
Russell Investment Grade Bond Fund - Class A | | | 0.0379 | |
Russell Investment Grade Bond Fund - Class C | | | 0.0239 | |
Russell Investment Grade Bond Fund - Class E | | | 0.0387 | |
Russell Investment Grade Bond Fund - Class I | | | 0.0443 | |
Russell Investment Grade Bond Fund - Class S | | | 0.0428 | |
Russell Investment Grade Bond Fund - Class Y | | | 0.0461 | |
Russell Short Duration Bond Fund - Class A | | | 0.0282 | |
Russell Short Duration Bond Fund - Class C | | | 0.0165 | |
| | | | |
| | 472 | | | Notes to Financial Statements |
Russell Investment Company
Russell Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | |
| Fund | | Net Investment
Income | |
| | | | |
Russell Short Duration Bond Fund - Class E | | $ | 0.0283 | |
Russell Short Duration Bond Fund - Class S | | | 0.0325 | |
Russell Short Duration Bond Fund - Class Y | | | 0.0340 | |
Russell Tax Exempt Bond Fund - Class A | | | 0.0499 | |
Russell Tax Exempt Bond Fund - Class C | | | 0.0307 | |
Russell Tax Exempt Bond Fund - Class E | | | 0.0451 | |
Russell Tax Exempt Bond Fund - Class S | | | 0.0499 | |
On June 1, 2012, the Board declared the following dividends payable from net investment income. Dividends were paid on June 5, 2012, to shareholders of record on June 4, 2012.
| | | | |
| Fund | | Net Investment
Income | |
| | | | |
Russell Strategic Bond Fund - Class A | | $ | 0.0188 | |
Russell Strategic Bond Fund - Class C | | | 0.0116 | |
Russell Strategic Bond Fund - Class E | | | 0.0189 | |
Russell Strategic Bond Fund - Class I | | | 0.0216 | |
Russell Strategic Bond Fund - Class S | | | 0.0211 | |
Russell Strategic Bond Fund - Class Y | | | 0.0225 | |
Russell Investment Grade Bond Fund - Class A | | | 0.0229 | |
Russell Investment Grade Bond Fund - Class C | | | 0.0985 | |
Russell Investment Grade Bond Fund - Class E | | | 0.0233 | |
Russell Investment Grade Bond Fund - Class I | | | 0.0289 | |
Russell Investment Grade Bond Fund - Class S | | | 0.0274 | |
Russell Investment Grade Bond Fund - Class Y | | | 0.0307 | |
Russell Short Duration Bond Fund - Class A | | | 0.0279 | |
Russell Short Duration Bond Fund - Class C | | | 0.0159 | |
Russell Short Duration Bond Fund - Class E | | | 0.0281 | |
Russell Short Duration Bond Fund - Class S | | | 0.0322 | |
Russell Short Duration Bond Fund - Class Y | | | 0.0337 | |
Russell Tax Exempt Bond Fund - Class A | | | 0.0399 | |
Russell Tax Exempt Bond Fund - Class C | | | 0.0256 | |
Russell Tax Exempt Bond Fund - Class E | | | 0.0406 | |
Russell Tax Exempt Bond Fund - Class S | | | 0.0454 | |
Reorganization
Effective August 15, 2012, the Russell U.S. Quantitative Equity Fund will change its investment strategy from a quantitative investment approach to investing in defensive stocks and discontinue its limited long-short strategy. The Fund will be renamed the Russell U.S. Defensive Equity Fund. Following the Fund’s current Principal Investment Strategies and Non-Principal Investment Strategies are the Principal Investment Strategies and Non-Principal Investment Strategies that will be effective on August 15, 2012.
Effective August 15, 2012, the Russell U.S. Growth Fund will change its investment strategy from investing in growth stocks to investing in dynamic stocks and implement a limited long-short strategy. The Fund will be renamed the Russell U.S. Dynamic Equity Fund. Following the Fund’s current Principal Investment Strategies and Non-Principal Investment Strategies are the Principal Investment Strategies and Non-Principal Investment Strategies that will be effective on August 15, 2012.
On May 22, 2012, the Board of Trustees of Russell Investment Company approved the reorganization of the Fund into the Russell U.S. Defensive Equity Fund (known as the Russell U.S. Quantitative Equity Fund until August 15, 2012). The reorganization is expected to be completed on October 15, 2012. For more details regarding the reorganization, please see the Reorganization Information section at the end of this Prospectus.
Timing of the Reorganization
The Reorganization is expected to be completed on October 15, 2012 based on values as of the close of regular trading on the New York Stock Exchange on October 12, 2012 or at such earlier or subsequent date as RIMCo determines to be in the interest of the Funds. The Acquired Fund will be closed to new investments as of the close of business on October 10, 2012, and no purchases of the Acquired Fund’s shares will be allowed after that time.
| | |
| Notes to Financial Statements | | 473 |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts — (Unaudited)
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 24, 2012 (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 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 16, 2012, the Independent Trustees in preparation for the Agreement Evaluation Meeting met by conference telephone call to review the 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. The Independent Trustees also met in person on April 23, 2012, in executive session with their independent counsel, to review additional Agreement Evaluation Information received to that date. 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 at the Agreement Evaluation Meeting as part of this review encompassed the Funds and all other RIMCo-managed funds for which the Board has supervisory responsibility. Prior to voting at the Agreement Evaluation Meeting, 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 RIMCo’s advice 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 managed directly a portion of one Fund’s assets employing a “select holding strategy,” as described below, during 2011 and a portion of 2012, and generally directly manages the investment of each Fund’s cash. 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. RIMCo may also manage a Fund’s assets to manage risk in the Fund’s investment portfolio. 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
| | | | |
| | 474 | | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
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 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 advisory or security 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 any 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 discussed with senior representatives of RIMCo the impact on the Funds’ operations of significant changes in RIMCo’s senior management and other personnel providing investment advisory and other services to the Funds since 2011 to the date of the Agreement Evaluation Meeting. At the Agreement Evaluation Meeting, RIMCo assured the Board that such changes have not resulted and are not expected to result in any diminution in the nature, scope or quality of the investment advisory or other services provided to the Funds. The Board also discussed the impact of organizational changes on the compliance programs of the Funds and RIMCo with the Funds’ Chief Compliance Officer (the “CCO”) and received assurances from the CCO that such changes have not resulted in any diminution in the scope and quality of the Funds’ compliance programs.
As noted above, RIMCo, pursuant to the terms of the RIMCo Agreement, directly managed a portion — up to 10% — of the assets of the Russell U.S. Core Equity Fund and the Russell U.S. Quantitative Equity Fund (the “Participating Funds”) utilizing a select holdings strategy (the “select holdings strategy”) during 2011 and a portion of 2012, the actual allocation being determined by the Participating Funds’ RIMCo portfolio manager. The Board considered that the select holdings strategy utilized by RIMCo in managing such assets for the Participating Funds was designed to increase the Participating Funds’ exposure to stocks that were viewed as attractive by multiple Money Managers of the Participating Funds. The select holdings strategy was discontinued during 2011 or 2012 with respect to each Participating Fund. The Board considered the impact of the select holdings strategy upon the
| | |
| Basis for Approval of Investment Advisory Contracts | | 475 |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
investment results of the Participating Funds. The Board also considered that during the period that the select holdings strategy was utilized for the Participating Funds, RIMCo was not required to pay investment advisory fees to a Money Manager with respect to assets for which the select holdings strategy was employed and that the profits derived by RIMCo generally, and from the Participating Funds consequently, may have increased incrementally. The Board, however, also considered RIMCo’s advice that it paid certain Money Managers additional fees for providing information and other services in connection with the select holdings strategy and incurred additional costs in carrying out the select holdings strategy; the limited amount of assets that were managed directly by RIMCo pursuant to the select holdings strategy; and the fact that the aggregate investment Advisory Fees paid by the Participating Funds were 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.
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 Tax-Managed U.S. Large Cap Fund, Russell Tax-Managed U.S. Mid & Small Cap Fund, Russell Global Equity Fund, Russell Emerging Markets Fund, Russell Strategic Bond Fund, Russell Short Duration Bond Fund, Russell Global Opportunistic Credit Fund, Russell Commodity Strategies Fund, Russell Global Infrastructure Fund and the Russell Global Real Estate Securities Fund each had an Advisory Fee which on a contractual basis, 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) or on both a contractual and actual basis was ranked in the fourth or fifth quintile of its Expense Universe while each other Fund had an Advisory Fee which was ranked in the first, second or third quintile of its Expense Universe. In these rankings, the first quintile represents funds with the lowest investment advisory fees among funds in the Expense Universe and the fifth quintile represents funds with the highest investment advisory fees among the Expense Universe funds. The comparisons were based upon the latest fiscal years for the Expense Universe funds. The Board considered that, with the exception of the Russell Tax-Managed U.S. Mid & Small Cap Fund, Russell Global Equity Fund, Russell Emerging Markets Fund, Russell Global Opportunistic Credit Fund, Russell Commodity Strategies Fund and Russell Global Infrastructure Fund, each such Fund’s Advisory Fee was within 5 basis points or less from the third quintile of its Expense Universe. In assessing the Funds’ Advisory Fees, the Board focused on actual rather than contractual 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 fair and reasonable notwithstanding such comparisons. With respect to the Russell U.S. Value Fund, the Board considered that RIMCo in 2011 implemented a 5 basis point non-contractual Advisory Fee waiver for the Fund and, at the Agreement Evaluation Meeting, announced its intention to increase the voluntary Advisory Fee waiver by an additional 5 basis points. With respect to the Russell Global Infrastructure Fund, RIMCo noted that the Fund currently benefits from an Advisory Fee waiver of 34 basis points, consisting of a contractual waiver of 25 basis points and a voluntary waiver of 9 basis points.
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. RIMCo expressed the view that Advisory Fees should be considered in the context of a Fund’s total expense ratio to obtain a complete picture. The Board, however, considered each Fund’s Advisory Fee on both a standalone basis and in the context of the Fund’s total expense ratio.
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 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 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
| | | | |
| | 476 | | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
nature and scope of services RIMCo provides to institutional clients and 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 other 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 U.S. Growth Fund, Russell U.S. Value Fund, Russell Global Equity Fund, Russell Emerging Markets Fund, Russell Tax-Managed U.S. Mid & Small Cap Fund, Russell Short Duration Bond Fund, Russell Strategic Bond Fund and Russell Global Opportunistic Credit Fund each was ranked in the fourth quintile of its Expense Universe based upon the latest fiscal years for the Expense Universe funds and that the total expenses for the Russell Commodity Strategy Fund was ranked in the fifth quintile of its Expense Universe based upon the latest fiscal years for the Expense Universe funds. The total expenses for each of the other Funds was ranked in the first, second or third quintile of its Expense Universe. In these rankings, the first quintile represents the funds with the lowest total expenses among funds in the Expense Universe and the fifth quintile represents funds with the highest total expenses among the Expense Universe funds. The Board considered that the total expenses of each of the Russell Global Equity Fund, Russell Emerging Markets Fund, Russell Strategic Bond Fund and Russell Short Duration Fund were within 5 basis points or less from the third quintile of the Fund’s Expense Universe. In the case of each of the aforementioned Funds, a significant factor in the Fund’s total expense ranking was the Fund’s Advisory Fee when compared to the investment advisory fees of other Expense Universe funds. The Board considered RIMCo’s explanation of these rankings.
With respect to the Russell U.S. Growth Fund, according to RIMCo, the Fund’s ranking reflected relatively high custody fees and other non-management expenses. RIMCo noted that it currently has contractually agreed to waive up to the full amount of its Advisory Fee and then to reimburse the Fund for other direct Fund-level expenses to the extent they exceed 0.98% of the Fund’s average daily net assets on an annual basis. In addition, RIMCo has implemented a voluntary cap on direct Fund-level expenses of 0.87% of average daily net assets on an annual basis. RIMCo expressed its belief that the Fund’s total expenses were reasonable under the circumstances.
With respect to the Russell U.S. Value Fund, according to RIMCo, the Fund’s ranking reflected relatively high Advisory Fees, custody fees and transfer agency fees. RIMCo noted that a 5 basis point non-contractual Advisory Fee waiver was implemented in mid-2011 and was not fully reflected in the Third-Party Information, although the Fund’s total expenses still would have ranked in the fourth quintile giving full effect to the waiver for the full year. RIMCo noted further that the assets in the Fund have declined during the past year. At the Agreement Evaluation Meeting, RIMCo announced that, effective May 1, 2012, it will increase the non-contractual Advisory Fee waiver to 10 basis points, which will bring the Fund’s total expenses to within 5.2 basis points of the third quintile on a pro forma basis.
With respect to the Russell Tax-Managed U.S. Mid & Small Cap Fund, the Fund’s ranking reflected relatively high advisory and custody fees. RIMCo noted that the Fund has a cap which, with certain exceptions, limits total direct Fund-level expenses to 1.10% of the Fund’s average daily net assets on an annual basis. RIMCo noted further that few of the funds in its Expense Universe pursue a tax-managed or tax-aware strategy comparable to the Fund’s and that the higher relative Advisory Fees and total expenses are justified by the Fund’s strategy.
With respect to the Russell Global Opportunistic Credit Fund and the Russell Commodity Strategies Fund, RIMCo expressed its belief that the Funds’ Expense Universes were not appropriate and that peer comparisons performed by RIMCo utilizing expense universes that, in its judgment, were more appropriate showed improved comparisons. In the case of the Russell Global Opportunistic Credit Fund, the Board considered RIMCo’s expectations that Money Manager fees will increase, resulting in a net margin that is one of the lowest among the Funds.
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 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; (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.
| | |
| Basis for Approval of Investment Advisory Contracts | | 477 |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
The Board 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 3-year period ended December 31, 2011 as most relevant but also considered the Funds’ performance for the 1- and 5-year periods ended such date.
In evaluating the performance of the Funds generally relative to their Comparable Funds, the Board, in addition to the factors described 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 cash 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 in the past has noted 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 in the past has 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 but may enhance the Funds’ relative performance in a rising market.
With respect to the Russell U.S. Quantitative Equity Fund, the Third-Party Information showed that the Fund’s performance was ranked in the first quintile of its Performance Universe for the 1-year period ended December 31, 2011, but was ranked in the fourth quintile of its Performance Universe for the 3- and 5-year periods ended such date. RIMCo expressed its 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. RIMCo noted that the Fund’s 3-year underperformance was driven by underperformance in 2009 and 2010. This underperformance largely was the result of significant swings in investor sentiment based upon macroeconomic news rather than company specific data, making a difficult environment for quantitative managers generally. RIMCo also noted changes made during 2010 and 2011 in the Fund’s Money Managers. In addition, RIMCo noted that the Fund’s underperformance in part reflected utilization of the select holdings strategy which magnified downside risk in periods of underperformance. The select holdings strategy was discontinued in respect of this Fund in March 2011. RIMCo during the past year expressed its belief that the Fund — is expected to perform better with these changes. The Fund showed improvement for the 1-year period ended December 31, 2011 in performance relative to its Comparable Funds, in-line with expectations expressed to the Board by RIMCo in connection with the changes to the Fund. The Board also took into account that changes to the Fund’s investment program were being planned by RIMCo which, if implemented, would reduce the significance of the Fund’s past performance.
With respect to the Russell Commodity Strategies Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fourth quintile of its Performance Universe for the 1-year period ended December 31, 2011. RIMCo expressed the view that the Performance Universe was inappropriate and RIMCo therefore reviewed the Fund’s performance relative to a performance universe of its own construction (the “Russell Performance Universe”). RIMCo advised the Board that the Fund underperformed relative to the other funds in the Russell Performance Universe and that such underperformance was attributable to differences in the peer funds’ benchmarks and performance objectives, many of which invest in higher risk strategies than the Fund and have been weighted more heavily in energy commodities which performed well during the period. RIMCo noted, among other things, that the peer funds in the Russell Performance Universe include sector funds such as natural resources and energy funds. The Board also considered the limited performance record of the Fund.
With respect to the Russell Tax Exempt Bond Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fourth quintile of its Performance Universe for the 1- and 3-year periods ended December 31, 2011, but was ranked in the third quintile for the 5-year period ended such date. The Board considered RIMCo’s explanation of the Fund’s relative underperformance for the 1- and 3-year periods. Among other things, RIMCo noted that the Comparable Funds’ tendency to maintain longer portfolio durations than the Fund generally maintains in its portfolio was a benefit during interest rallies during the periods. An underweight to state and local general obligations which outperformed (especially among lower quality states) also detracted from the Fund’s relative performance.
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 periodically volatile capital market conditions since 2008 that continue to impact the Funds’ relative performance for the 3- and, where applicable, 5-year periods ended December 31, 2011.
The Board also considered that a large number of Money Manager changes were made in 2010 and 2011 and that the performance of Money Managers continues to impact Fund performance for periods prior and subsequent to their termination.
| | | | |
| | 478 | | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
The Board also considered information provided by RIMCo regarding planned changes to the investment strategies of certain Funds and related Money Manager terminations that RIMCo intended to recommend to the Board at the May 2012 Board meeting.
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’ CCO regarding each Money Manager’s compliance program. RIMCo recommended that each Money Manager be retained at its current fee rate, although RIMCo noted its intentions to recommend terminations of some Money Managers at the Board’s May 2012 meeting generally in connection with planned changes to the investment strategies of certain Funds. 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.
Russell U.S. Large Cap Equity Fund and Russell U.S. Mid Cap Equity Fund
With respect to each of the Russell U.S. Large Cap Equity Fund and the Russell U.S. Mid Cap Equity Fund (the “New Funds”), the Board of Trustees, including all of the Independent Trustees, considered and approved the implementation of the advisory agreement with RIMCo (the “RIMCo Agreement”) and the portfolio management contract with each Money Manager (the “portfolio management contracts”) at a meeting held in person on December 6, 2011 (the “New Fund Agreement Evaluation Meeting”). In preparation for the reviews, the Board considered (1) information and reports prepared by RIMCo relating to the services provided by RIMCo (and its affiliates) and each Money Manager to the Funds and proposed to be provided to the New Funds; and (2) information prepared by RIMCo, not an independent source, comparing the proposed fees and expenses of each of the New Funds with other peer funds not managed by RIMCo, believed by RIMCo to be generally comparable in investment objectives to the New Funds. In the case of each New Fund, its other peer funds are collectively hereinafter referred to as the New Fund’s “Russell Peer Funds.” The foregoing information is collectively called the “New Fund Agreement Evaluation Information.” The Trustees’ evaluations also reflected the knowledge and familiarity gained as Board members of the other Funds in the same complex with respect to services provided by RIMCo and RIMCo’s affiliates, and advice previously received from counsel regarding the Trustees’ responsibilities in considering the agreements.
Based upon the New Fund Agreement Evaluation Information, including presentations by RIMCo at the New Fund Agreement Evaluation Meeting, the Trustees considered, with respect to each New Fund, various specific factors in evaluating approval 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. | Other fees and benefits expected to be received by RIMCo or its affiliates from the Fund; |
| | |
| Basis for Approval of Investment Advisory Contracts | | 479 |
Russell Investment Company
Russell Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
| 4. | Expenses expected to be incurred by the Fund; and |
| 5. | Profits that RIMCo expects to derive from its operations with respect to the Funds. |
On the basis of the New Fund Agreement Evaluation Information, and other information previously received by the Board from RIMCo during the course of the current year or prior years, the Board, in respect of each New 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 expected to be provided to the New Fund; (2) the relative expense ratio of the New Fund was comparable to those of its Russell Peer Funds; (3) other benefits and fees expected to be received by RIMCo or its affiliates from the New Fund were not excessive; and (4) RIMCo’s profitability with respect to the New Fund was not excessive in light of the expected nature, scope and overall quality of the investment management and other services to be provided by RIMCo.
After considering the foregoing and other relevant factors, the Board concluded that approval of the RIMCo Agreement on its current terms and conditions would be in the best interests of each New Fund and voted to approve the RIMCo Agreement.
At the New Fund 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: RIMCo’s assessment of the investment capabilities, philosophy and approach of the Money Manager; any significant business relationships between the Money Manager and RIMCo or Russell Financial Services, Inc., the New Funds’ underwriter; and RIMCo’s recommendation with respect to the Money Manager’s fee rate. The Board also received reports regarding each Money Manager’s compliance program and assurance from the New Funds’ Chief Compliance Officer that its compliance program would meet applicable legal and regulatory requirements. 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 to be paid by each New Fund and the fact that each Money Manager’s fee will be paid by RIMCo.
Based substantially upon RIMCo’s recommendations, together with the New Fund Agreement Evaluation Information, the Board concluded that the fees proposed to be paid to the Money Managers of each New Fund are reasonable in light of the expected quality of the investment advisory services to be provided and that approval of the portfolio management contract with each Money Manager of each New Fund would be in the best interests of the New Fund and its shareholders.
| | | | |
| | 480 | | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
Russell Funds
Shareholder Requests for Additional Information — April 30, 2012 (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 and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”). The Funds maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders and third parties of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional Information (“SAI”). The SAI and information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2011 are 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’ prospectuses and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution.
Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please contact your Financial Intermediary for further details.
| | |
| Shareholder Requests for Additional Information | | 481 |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers — April 30, 2012 (Unaudited)
The following tables provide information for each officer and trustee of the Russell Fund Complex. The Russell Fund Complex consists of Russell Investment Company (“RIC”), which has 38 funds, and Russell Investment Funds (“RIF”), which has 10 funds. Each of the trustees is a trustee of both RIC and RIF. The first table provides information for the interested trustees. 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. Furthermore, each Trustee possesses the following specific attributes: Mr. Alston has business, financial and investment experience as a senior executive of an international real estate firm and is trained as a lawyer; Ms. Blake has had experience as a certified public accountant and has had experience as a member of boards of directors/trustees of other investment companies; Mr. Connealy has had experience with other investment companies and their investment advisers first as a partner in the investment management practice of PricewaterhouseCoopers LLP and, subsequently, as the senior financial executive of two other investment organizations sponsoring and managing investment companies. Mr. Fine has had financial, business and investment experience as a senior executive of a non-profit organization and previously, as a senior executive of a large regional financial services organization with management responsibility for such activities as investments, asset management and securities brokerage; Mr. Tennison has had business, financial and investment experience as a senior executive of a corporation with international activities and was trained as an accountant; Mr. Thompson has had experience in business, governance, investment and financial reporting matters as a senior executive of an organization sponsoring and managing other investment companies and has been determined by the Board to be an “audit committee financial expert,” as explained below, and, subsequently, has served as a board member of other investment companies; and Ms. Weston has had experience as a tax and corporate lawyer, has served as general counsel of several corporations and has served as a director of another investment company. Ms. Cavanaugh has had experience with other financial services companies, including companies engaged in the sponsorship, management and distribution of investment companies. As a senior officer of the Funds, the Adviser and various affiliates of the Adviser providing services to the Funds, Ms. Cavanaugh is in a position to provide the Board with such parties’ perspectives on the management, operations and distribution of the Funds.
| | | | | | | | | | | | |
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
During the
Past 5 Years |
INTERESTED TRUSTEES |
# Sandra Cavanaugh,
Born May 10, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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 •Chairman of the Board, President and CEO, Russell Financial Services, Inc. •Chairman of the Board, President and CEO, Russell Fund Services Company (“RFSC”) •Chairman of the Board and President, Russell Insurance Agency, Inc. (“RIA”) (insurance agency) •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. (investment company) •1997 to 2007, President — WM Funds Distributor & Shareholder Services/WM Financial Services (investment company) | | | 48 | | | None |
| | | | |
| | 482 | | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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
During the
Past 5 Years |
INTERESTED TRUSTEES (continued) |
## Daniel P. Connealy, Born June 6, 1946 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2003 | | Appointed until successor is duly elected and qualified | | •June 2004 to present, Senior Vice President and Chief Financial Officer, Waddell & Reed Financial, Inc. (investment company) •Chairman of the Audit Committee, RIC and RIF from 2005 to 2011 | | | 48 | | | None |
| # | Ms. Cavanaugh is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
| ## | Mr. Connealy is an officer of a broker-dealer that distributes shares of the Funds and is therefore an Interested Trustee. |
| | | | | | | | | | | | |
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
During the
Past 5 Years |
INDEPENDENT TRUSTEES |
Thaddas L. Alston, Born April 7, 1945 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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) | | | 48 | | | None |
| | | | | | | | | | | | | |
Kristianne Blake, Born January 22, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2000 Chairman since 2005 | | Appointed until successor is duly elected and qualified Annual | | •Director and Chairman of the Audit Committee, Avista Corp. (electric utilities) •Trustee and Chairman of the Operations Committee, Principal Investor Funds and Principal Variable Contracts Funds (investment company) •Regent, University of Washington •President, Kristianne Gates Blake, P.S. (accounting services) | | | 48 | | | Director, Avista Corp (electric utilities); Trustee, Principal Investor Funds (investment company); Trustee, Principal Variable Contracts Funds (investment company) |
| | | | | | | | | | | | | |
Jonathan Fine, Born July 8, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2004 | | Appointed until successor is duly elected and qualified | | •President and Chief Executive Officer, United Way of King County, WA (charitable organization) | | | 48 | | | None |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 483 |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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
During the
Past 5 Years |
INDEPENDENT TRUSTEES (continued) |
Raymond P. Tennison, Jr., Born December 21, 1955 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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 of the Board, Simpson Investment Company (paper and forest products) •Until November 2010, President, Simpson Investment Company and several additional subsidiary companies, including Simpson Timber Company, Simpson Paper Company and Simpson Tacoma Kraft Company | | | 48 | | | None |
| | | | | | | | | | | | | |
Jack R. Thompson, Born March 21, 1949 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2005 Chairman of the Audit Committee, RIC and RIF since 2012 | | Appointed until successor is duly elected and qualified 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 (investment company) •September 2007 to September 2010, Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation (health products company) | | | 48 | | | Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation until September 2010 (health products company) Director, Sparx Asia Funds until 2009 (investment company) |
| | | | | | | | | | | | | |
Julie W. Weston, Born October 2, 1943 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2002 | | Appointed until successor is duly elected and qualified | | •Retired •Chairperson of the Investment Committee until December 2009 | | | 48 | | | None |
| * | Each Trustee is subject to mandatory retirement at age 72. |
| | | | |
| | 484 | | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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
During the
Past 5 Years |
TRUSTEE EMERITUS | | | | | | | | | | | | |
* George F. Russell, Jr., Born July 3, 1932 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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) | | | 48 | | | None |
| | | | | | | | | | | | | |
** Paul E. Anderson, Born October 15, 1931 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee Emeritus since 2007 | | Five year term | | •President, Anderson Management Group LLC (private investments consulting) •February 2002 to June 2005, Lead Trustee, RIC and RIF •Trustee of RIC and RIF until 2006 •Chairman of the Nominating and Governance Committee 2006 | | | 48 | | | None |
| * | Mr. Russell is also a director emeritus of one or more affiliates of RIC and RIF. |
| ** | Effective December 31, 2011, Mr. Anderson’s term as Trustee Emeritus expired. |
| | | | | | |
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 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Chief Compliance Officer since 2005 | | Until removed by Independent Trustees | | •Chief Compliance Officer, RIC •Chief Compliance Officer, RIF •2005-2011 Chief Compliance Officer, RIMCo •Chief Compliance Officer, RFSC •Chief Compliance Officer, Russell Exchange Traded Funds Trust |
| | | | | | | |
Sandra Cavanaugh, Born May 10, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | President and Chief Executive Officer since 2010 | | Until successor is chosen and qualified by Trustees | | •President and CEO, RIC and RIF •Chairman of the Board, Co-President and CEO, Russell Financial Services, Inc. •Chairman of the Board, President and CEO, RFSC •Director, RIMCo •Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) •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 |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 485 |
Russell Investment Company
Russell Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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 (continued) | | | | | | |
Mark E. Swanson, Born November 26, 1963 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Treasurer and Chief Accounting Officer since 1998 | | Until successor is chosen and qualified by Trustees | | •Treasurer, Chief Accounting Officer and CFO, RIC and RIF •Treasurer, Chief Accounting Officer and CFO, Russell Exchange Traded Funds Trust •Director, Funds Administration, RIMCo, RFSC, RTC and Russell Financial Services, Inc. •Treasurer and Principal Accounting Officer, SSgA Funds |
| | | | | | | |
Peter Gunning, Born February 22, 1967 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Chief Investment Officer since 2008 | | Until removed by Trustees | | •Chief Investment Officer, RIC and RIF •Director, FRC •Chairman of the Board, President and CEO, RIMCo •1996 to 2008 Chief Investment Officer, Russell, Asia Pacific |
| | | | | | | |
Mary Beth Rhoden, Born April 25, 1969 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Secretary since 2010 | | Until successor is chosen and qualified by Trustees | | •1999 to 2010 Assistant Secretary, RIC and RIF •Associate General Counsel, FRC •Secretary, RIMCo, RFSC and Russell Financial Services, Inc. •Secretary and Chief Legal Officer, RIC and RIF •Secretary and Chief Legal Officer, Russell Exchange Traded Funds Trust |
| | | | |
| | 486 | | | Disclosure of Information about Fund Trustees and Officers |
Russell Funds
Russell Investment Company
1301 Second Avenue, Seattle, Washington 98101
(800) 787-7354
Interested Trustee
Sandra Cavanaugh
Daniel P. Connealy
Independent Trustees
Thaddas L. Alston
Kristianne Blake
Jonathan Fine
Raymond P. Tennison, Jr.
Jack R. Thompson
Julie W. Weston
Trustees Emeritus
George F. Russell, Jr.
Paul E. Anderson
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
Mary Beth Rhoden, Secretary
Adviser
Russell Investment Management Company
1301 Second Avenue
Seattle, WA 98101
Administrator and Transfer and Dividend
Disbursing Agent
Russell Fund Services Company
1301 Second Avenue
Seattle, WA 98101
Custodian
State Street Bank and Trust Company
1200 Crown Colony Drive
Crown Colony Office Park
Quincy, MA 02169
Office of Shareholder Inquiries
1301 Second Avenue
Seattle, WA 98101
(800) 787-7354
Legal Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116-5021
Distributor
Russell Financial Services, Inc.
1301 Second Avenue
Seattle, WA 98101
Money Managers as of April 30, 2012
Russell U.S. Core Equity Fund
BlackRock Capital Management, Inc., Wilmington, DE
Columbus Circle Investors, Stamford, CT
Institutional Capital LLC, Chicago, IL
Lazard Asset Management LLC, New York, NY
Schneider Capital Management Corporation, Wayne, PA
Snow Capital Management L.P., Sewickley, PA
Suffolk Capital Management LLC, New York,
Sustainable Growth Advisers, LP, Stamford, CT
Russell U.S. Quantitative Equity Fund
Aronson+Johnson+Ortiz, LP, Philadelphia, PA
INTECH Investment Management LLC, West Palm Beach, FL
Jacobs Levy Equity Management Inc, Florham Park, NJ
Numeric Investors LLC, Boston, MA
PanAgora Asset Management Inc, Boston, MA
Russell U.S. Growth
Columbus Circle Investors, Stamford, CT
Cornerstone Capital Management, Inc., Edina, MN
Suffolk Capital Management LLC, New York, NY
Sustainable Growth Advisers, LP, Stamford, CT
Russell U.S. Value
DePrince, Race & Zollo, Inc., Winter Park, FL
Numeric Investors LLC, Boston, MA
Snow Capital Management, L.P., Sewickley, PA
Systematic Financial Management LP, Teaneck, NJ
Russell U.S. Large Cap Equity Fund
Ceredex Value Advisors LLC, Orlando, FL
Columbus Circle Investors, Stamford, CT
Institutional Capital LLC, Chicago, IL
Jacobs Levy Equity Management Inc, Florham Park, NJ
Sustainable Growth Advisers, LP, Stamford, CT
Russell U.S. Mid Cap Equity Fund
Arbor Capital Management, LLC, Minneapolis, MN
Ceredex Value Advisors LLC, Orlando, FL
Jacobs Levy Equity Management Inc, Florham Park, NJ
Russell U.S. Small Cap Equity Fund
Chartwell Investment Partners, Berwyn, PA
ClariVest Asset Management LLC, San Diego, CA
DePrince, Race & Zollo, Inc., Winter Park, FL
EAM Investors, LLC, Cardiff by the Sea, CA
Falcon Point Capital, LLC, San Francisco, CA
Huber Capital Management LLC, Los Angeles, CA
Jacobs Levy Equity Management Inc, Florham Park, NJ
Next Century Growth Investors LLC, Minneapolis, MN
PENN Capital Management Company, Inc., Philadelphia, PA
Ranger Investment Management, L.P., Dallas, TX
Signia Capital Management, LLC, Spokane, WA
| | |
| Manager, Money Managers and Service Providers | | 487 |
Russell Funds
Russell Investment Company
1301 Second Avenue, Seattle, Washington 98101
(800) 787-7354
Russell International Developed Markets Fund
AQR Capital Management, LLC, Greenwich, CT
Axiom International Investors LLC, Greenwich, CT
del Rey Global Investors, LLC, Los Angeles, CA
Driehaus Capital Management LLC, Chicago, IL
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
William Blair & Company L.L.C., Chicago, IL
Russell Global Equity Fund
GLG Inc., New York, NY
Harris Associates LP, Chicago, IL
MFS Institutional Advisors Inc., Boston, MA
Sanders Capital, LLC, New York, NY
Tradewinds Global Investors, LLC, Los Angeles, CA
T. Rowe Price Associates, Inc., Baltimore, MD
Russell Emerging Markets Fund
AllianceBernstein L.P., New York, NY
Arrowstreet Capital, Limited Partnership, Boston, MA
Delaware Management Company, a Series of Delaware Management Business Trust, Philadelphia, PA
Genesis Asset Managers, LLP, Guernsey, Channel Islands
Harding Loevner LP, Bridgewater, NJ
UBS Global Asset Management (Americas) Inc., Chicago, IL
Victoria 1522 Investments, LP, San Francisco, CA
Russell Tax-Managed U.S. Large Cap Fund
Armstrong Shaw Associates Inc., New Canaan, CT
J.P. Morgan Investment Management Inc., New York, NY
NWQ Investment Management Company, LLC, Los Angeles, CA
Sands Capital Management, LLC, Arlington, VA
Sustainable Growth Advisers, LP, Stamford CT
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 Global Opportunistic Credit Fund
DDJ Capital Management LLC, Waltham, MA
Oaktree Capital Management, L.P., Los Angeles, CA
Stone Harbor Investment Partners LP, New York, NY
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
Logan Circle Partners, L.P., Philadelphia, PA
Metropolitan West Asset Management, LLC, Los Angeles, CA
Neuberger Berman Fixed Income LLC, Chicago, IL
Pacific Investment Management Company LLC, Newport Beach, CA
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 Commodity Strategies Fund
Credit Suisse Asset Management, LLC, New York, NY
Goldman Sachs Asset Management, L.P., New York, NY
Jefferies Asset Management, LLC, Stamford, CT
Russell Global Infrastructure Fund
Cohen & Steers Capital Management, Inc., New York, NY
Macquarie Capital Investment Management LLC, New York, NY
Nuveen Asset Management, LLC, Chicago, IL
Russell Global Real Estate Securities Fund
AEW Capital Management LP, Boston, MA
Cohen & Steers Capital Management, Inc., New York, NY
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, Seattle, 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.
| | | | |
| | 488 | | | Manager, Money Managers and Service Providers |
| | | | |
| Russell Investment Company | | 1301 Second Avenue | | 800-787-7354 |
| | Seattle, Washington 98101 | | Fax: 206-505-3495 |
| | | | www.russell.com |
36-08-226
2012 SEMI-ANNUAL REPORT
LifePoints® Funds
APRIL 30, 2012
| | |
| 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 |
| |
| 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 |
| |
| 2055 Strategy Fund | | R1, R2, R3 |
| |
| In Retirement Fund | | A, R1, R2, R3 |
Russell Investment Company
Russell Investment Company is a series investment company with
38 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, 2012 (Unaudited)
Table of Contents
Russell Investment Company - LifePoints® Funds.
Copyright © Russell Investments 2012. 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 and 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, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,041.70 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.79 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,037.88 | | | $ | 1,018.40 | |
Expenses Paid During Period* | | $ | 6.59 | | | $ | 6.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,041.58 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.79 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Conservative Strategy Fund | | 3 |
Russell Investment Company
Conservative Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,043.26 | | | $ | 1,024.22 | |
Expenses Paid During Period* | | $ | 0.66 | | | $ | 0.65 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.13% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,042.38 | | | $ | 1,022.97 | |
Expenses Paid During Period* | | $ | 1.93 | | | $ | 1.91 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.38% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,041.03 | | | $ | 1,021.73 | |
Expenses Paid During Period* | | $ | 3.20 | | | $ | 3.17 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.63% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,042.45 | | | $ | 1,023.37 | |
Expenses Paid During Period* | | $ | 1.52 | | | $ | 1.51 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.30% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 4 | | | Conservative Strategy Fund |
Russell Investment Company
Conservative Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 6.3% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 776,265 | | | | 23,396 | |
Russell U.S. Quantitative Equity Fund | | | 649,651 | | | | 21,627 | |
| | | | | | | | |
| | | | | | | 45,023 | |
| | | | | | | | |
| | |
| Fixed Income - 77.7% | | | | | | | | |
Russell Global Opportunistic Credit Fund | | | 1,565,616 | | | | 16,204 | |
Russell Investment Grade Bond Fund | | | 6,228,021 | | | | 140,193 | |
Russell Short Duration Bond Fund | | | 6,643,964 | | | | 129,159 | |
Russell Strategic Bond Fund | | | 24,742,990 | | | | 273,410 | |
| | | | | | | | |
| | | | | | | 558,966 | |
| | | | | | | | |
| | |
| International Equities - 10.0% | | | | | | | | |
Russell Global Equity Fund | | | 4,087,676 | | | | 36,094 | |
Russell International Developed Markets Fund | | | 1,232,089 | | | | 35,990 | |
| | | | | | | | |
| | | | | | | 72,084 | |
| | | | | | | | |
| | |
| Real Assets - 6.0% | | | | | | | | |
Russell Commodity Strategies Fund | | | 1,514,503 | | | | 14,418 | |
Russell Global Infrastructure Fund | | | 1,332,452 | | | | 14,470 | |
Russell Global Real Estate Securities Fund | | | 389,660 | | | | 14,511 | |
| | | | | | | | |
| | | | | | | 43,399 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $659,682) | | | | | | | 719,472 | |
| | |
Other Assets and Liabilities,
Net - 0.0% | | | | | | | 304 | |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 719,776 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 6.3 | |
Fixed Income | | | 77.7 | |
International Equities | | | 10.0 | |
Real Assets | | | 6.0 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | — | * |
| | | | |
| |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
| | |
| Conservative Strategy Fund | | 5 |
Russell Investment Company
Conservative Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 659,682 | |
Investments, at market | | | 719,472 | |
Receivables: | | | | |
Investments sold | | | 608 | |
Fund shares sold | | | 1,359 | |
From affiliates | | | 116 | |
| | | | |
Total assets | | | 721,555 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 1,156 | |
Accrued fees to affiliates | | | 511 | |
Other accrued expenses | | | 112 | |
| | | | |
Total liabilities | | | 1,779 | |
| | | | |
| | | | |
Net Assets | | $ | 719,776 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (462 | ) |
Accumulated net realized gain (loss) | | | (9,671 | ) |
Unrealized appreciation (depreciation) on investments | | | 59,790 | |
Shares of beneficial interest | | | 667 | |
Additional paid-in capital | | | 669,452 | |
| | | | |
| | | | |
Net Assets | | $ | 719,776 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.78 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.44 | |
Class A — Net assets | | $ | 122,840,121 | |
Class A — Shares outstanding ($.01 par value) | | | 11,396,409 | |
Net asset value per share: Class C(a) | | $ | 10.70 | |
Class C — Net assets | | $ | 211,224,229 | |
Class C — Shares outstanding ($.01 par value) | | | 19,749,793 | |
Net asset value per share: Class E(a) | | $ | 10.81 | |
Class E — Net assets | | $ | 47,219,834 | |
Class E — Shares outstanding ($.01 par value) | | | 4,367,460 | |
Net asset value per share: Class R1(a) | | $ | 10.84 | |
Class R1 — Net assets | | $ | 35,858,149 | |
Class R1 — Shares outstanding ($.01 par value) | | | 3,306,746 | |
Net asset value per share: Class R2(a) | | $ | 10.79 | |
Class R2 — Net assets | | $ | 44,663,439 | |
Class R2 — Shares outstanding ($.01 par value) | | | 4,139,032 | |
Net asset value per share: Class R3(a) | | $ | 10.85 | |
Class R3 — Net assets | | $ | 162,059,066 | |
Class R3 — Shares outstanding ($.01 par value) | | | 14,939,578 | |
Net asset value per share: Class S(a) | | $ | 10.85 | |
Class S — Net assets | | $ | 95,911,472 | |
Class S — Shares outstanding ($.01 par value) | | | 8,841,684 | |
| (a) | 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.
| | | | |
| | 6 | | | Statement of Assets and Liabilities |
Russell Investment Company
Conservative Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 13,633 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 697 | |
Administrative fees | | | 174 | |
Custodian fees | | | 15 | |
Distribution fees - Class A | | | 145 | |
Distribution fees - Class C | | | 746 | |
Distribution fees - Class R3 | | | 210 | |
Transfer agent fees - Class A | | | 104 | |
Transfer agent fees - Class C | | | 179 | |
Transfer agent fees - Class E | | | 39 | |
Transfer agent fees - Class R1 | | | 29 | |
Transfer agent fees - Class R2 | | | 41 | |
Transfer agent fees - Class R3 | | | 151 | |
Transfer agent fees - Class S | | | 84 | |
Professional fees | | | 23 | |
Registration fees | | | 88 | |
Shareholder servicing fees - Class C | | | 249 | |
Shareholder servicing fees - Class E | | | 55 | |
Shareholder servicing fees - Class R2 | | | 56 | |
Shareholder servicing fees - Class R3 | | | 210 | |
Trustees’ fees | | | 7 | |
Printing fees | | | 11 | |
Miscellaneous | | | 10 | |
| | | | |
Expenses before reductions | | | 3,323 | |
Expense reductions | | | (817 | ) |
| | | | |
Net expenses | | | 2,506 | |
| | | | |
Net investment income (loss) | | | 11,127 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 1,494 | |
Capital gain distributions from Underlying Funds | | | 530 | |
| | | | |
Net realized gain (loss). | | | 2,024 | |
Net change in unrealized appreciation (depreciation) on investments | | | 14,878 | |
| | | | |
Net realized and unrealized gain (loss) | | | 16,902 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 28,029 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 7 |
Russell Investment Company
Conservative Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012
(Unaudited) | | | Fiscal Period Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 11,127 | | | $ | 23,757 | |
Net realized gain (loss) | | | 2,024 | | | | 1,931 | |
Net change in unrealized appreciation (depreciation) | | | 14,878 | | | | (12,523 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 28,029 | | | | 13,165 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (2,018 | ) | | | (3,708 | ) |
Class C | | | (2,839 | ) | | | (5,293 | ) |
Class E | | | (749 | ) | | | (2,692 | ) |
Class R1 | | | (589 | ) | | | (824 | ) |
Class R2 | | | (818 | ) | | | (701 | ) |
Class R3 | | | (2,825 | ) | | | (7,132 | ) |
Class S | | | (1,751 | ) | | | (3,447 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (11,589 | ) | | | (23,797 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 13,042 | | | | 4,083 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 29,482 | | | | (6,549 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 690,294 | | | | 696,843 | |
| | | | | | | | |
End of period | | $ | 719,776 | | | $ | 690,294 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (462 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 8 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
Conservative Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
$ Net Asset Value,
Beginning of
Period | | | $
Net Investment
Income (Loss)(a)(b)(e) | | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.53 | | | | .18 | | | | .25 | | | | .43 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 10.71 | | | | .39 | | | | (.19 | ) | | | .20 | | | | (.38 | ) | | | — | |
October 31, 2010 | | | 9.79 | | | | .28 | | | | .93 | | | | 1.21 | | | | (.29 | ) | | | — | |
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 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.46 | | | | .13 | | | | .26 | | | | .39 | | | | (.15 | ) | | | — | |
October 31, 2011 | | | 10.64 | | | | .31 | | | | (.17 | ) | | | .14 | | | | (.32 | ) | | | — | |
October 31, 2010 | | | 9.75 | | | | .20 | | | | .90 | | | | 1.10 | | | | (.21 | ) | | | — | |
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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.56 | | | | .17 | | | | .26 | | | | .43 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 10.73 | | | | .47 | | | | (.26 | ) | | | .21 | | | | (.38 | ) | | | — | |
October 31, 2010 | | | 9.82 | | | | .28 | | | | .92 | | | | 1.20 | | | | (.29 | ) | | | — | |
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 | ) |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.59 | | | | .19 | | | | .26 | | | | .45 | | | | (.20 | ) | | | — | |
October 31, 2011 | | | 10.76 | | | | .40 | | | | (.14 | ) | | | .26 | | | | (.43 | ) | | | — | |
October 31, 2010 | | | 9.85 | | | | .29 | | | | .93 | | | | 1.22 | | | | (.31 | ) | | | — | |
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(1) | | | 10.77 | | | | .40 | | | | .22 | | | | .62 | | | | (.31 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.54 | | | | .19 | | | | .25 | | | | .44 | | | | (.19 | ) | | | — | |
October 31, 2011 | | | 10.72 | | | | .30 | | | | (.07 | ) | | | .23 | | | | (.41 | ) | | | — | |
October 31, 2010 | | | 9.81 | | | | .28 | | | | .92 | | | | 1.20 | | | | (.29 | ) | | | — | |
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 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.60 | | | | .18 | | | | .25 | | | | .43 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 10.77 | | | | .41 | | | | (.20 | ) | | | .21 | | | | (.38 | ) | | | — | |
October 31, 2010 | | | 9.85 | | | | .26 | | | | .92 | | | | 1.18 | | | | (.26 | ) | | | — | |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.60 | | | | .20 | | | | .24 | | | | .44 | | | | (.19 | ) | | | — | |
October 31, 2011 | | | 10.77 | | | | .44 | | | | (.20 | ) | | | .24 | | | | (.41 | ) | | | — | |
October 31, 2010 | | | 9.85 | | | | .30 | | | | .93 | | | | 1.23 | | | | (.31 | ) | | | — | |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value,
End of Period | | | % Total
Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses to Average Net Assets, Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets, Net(e)(f)(g) | | | % Ratio of Net Investment Income
to Average Net Assets(b)(c)(e) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 10.78 | | | | 4.17 | | | | 122,840 | | | | .72 | | | | .55 | | | | 1.67 | | | | 8 | |
| | (.38 | ) | | | 10.53 | | | | 1.98 | | | | 110,375 | | | | .74 | | | | .55 | | | | 3.55 | | | | 19 | |
| | (.29 | ) | | | 10.71 | | | | 12.55 | | | | 103,561 | | | | .73 | | | | .54 | | | | 2.74 | | | | 38 | |
| | (.46 | ) | | | 9.79 | | | | 17.41 | | | | 74,240 | | | | .73 | | | | .50 | | | | 3.93 | | | | 17 | |
| | (.60 | ) | | | 8.79 | | | | (15.56 | ) | | | 55,163 | | | | .66 | | | | .27 | | | | 5.05 | | | | 86 | |
| | (.66 | ) | | | 11.03 | | | | 6.76 | | | | 52,516 | | | | .65 | | | | .25 | | | | 3.87 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.70 | | | | 3.79 | | | | 211,224 | | | | 1.47 | | | | 1.30 | | | | 1.28 | | | | 8 | |
| | (.32 | ) | | | 10.46 | | | | 1.33 | | | | 191,953 | | | | 1.49 | | | | 1.30 | | | | 2.83 | | | | 19 | |
| | (.21 | ) | | | 10.64 | | | | 11.48 | | | | 174,211 | | | | 1.48 | | | | 1.29 | | | | 1.95 | | | | 38 | |
| | (.40 | ) | | | 9.75 | | | | 16.66 | | | | 116,776 | | | | 1.48 | | | | 1.25 | | | | 3.16 | | | | 17 | |
| | (.53 | ) | | | 8.75 | | | | (16.24 | ) | | | 88,276 | | | | 1.41 | | | | 1.02 | | | | 4.50 | | | | 86 | |
| | (.58 | ) | | | 10.99 | | | | 6.04 | | | | 84,747 | | | | 1.40 | | | | 1.00 | | | | 3.10 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 10.81 | | | | 4.16 | | | | 47,220 | | | | .72 | | | | .55 | | | | 1.63 | | | | 8 | |
| | (.38 | ) | | | 10.56 | | | | 2.01 | | | | 42,668 | | | | .74 | | | | .55 | | | | 4.21 | | | | 19 | |
| | (.29 | ) | | | 10.73 | | | | 12.39 | | | | 89,672 | | | | .72 | | | | .54 | | | | 2.77 | | | | 38 | |
| | (.46 | ) | | | 9.82 | | | | 17.48 | | | | 77,702 | | | | .73 | | | | .50 | | | | 3.92 | | | | 17 | |
| | (.60 | ) | | | 8.81 | | | | (15.60 | ) | | | 66,526 | | | | .66 | | | | .27 | | | | 5.27 | | | | 86 | |
| | (.66 | ) | | | 11.06 | | | | 6.84 | | | | 83,894 | | | | .65 | | | | .25 | | | | 3.84 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 10.84 | | | | 4.33 | | | | 35,858 | | | | .48 | | | | .13 | | | | 1.83 | | | | 8 | |
| | (.43 | ) | | | 10.59 | | | | 2.51 | | | | 29,187 | | | | .49 | | | | .12 | | | | 3.66 | | | | 19 | |
| | (.31 | ) | | | 10.76 | | | | 12.64 | | | | 18,008 | | | | .48 | | | | .27 | | | | 2.83 | | | | 38 | |
| | (.49 | ) | | | 9.85 | | | | 17.85 | | | | 7,662 | | | | .48 | | | | .25 | | | | 4.02 | | | | 17 | |
| | (.63 | ) | | | 8.83 | | | | (15.36 | ) | | | 3,026 | | | | .42 | | | | .02 | | | | 5.44 | | | | 86 | |
| | (.31 | ) | | | 11.08 | | | | 5.72 | | | | 1,914 | | | | .40 | | | | — | | | | 2.98 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.79 | | | | 4.24 | | | | 44,663 | | | | .72 | | | | .38 | | | | 1.75 | | | | 8 | |
| | (.41 | ) | | | 10.54 | | | | 2.19 | | | | 40,304 | | | | .74 | | | | .37 | | | | 2.74 | | | | 19 | |
| | (.29 | ) | | | 10.72 | | | | 12.43 | | | | 8,458 | | | | .73 | | | | .52 | | | | 2.69 | | | | 38 | |
| | (.46 | ) | | | 9.81 | | | | 17.44 | | | | 4,571 | | | | .74 | | | | .50 | | | | 3.97 | | | | 17 | |
| | (.61 | ) | | | 8.80 | | | | (15.60 | ) | | | 5,701 | | | | .66 | | | | .27 | | | | 4.84 | | | | 86 | |
| | (.65 | ) | | | 11.05 | | | | 6.75 | | | | 3,156 | | | | .65 | | | | .25 | | | | 3.64 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 10.85 | | | | 4.10 | | | | 162,059 | | | | .97 | | | | .63 | | | | 1.66 | | | | 8 | |
| | (.38 | ) | | | 10.60 | | | | 1.99 | | | | 183,681 | | | | .99 | | | | .62 | | | | 3.66 | | | | 19 | |
| | (.26 | ) | | | 10.77 | | | | 12.18 | | | | 209,751 | | | | .97 | | | | .77 | | | | 2.52 | | | | 38 | |
| | (.44 | ) | | | 9.85 | | | | 17.13 | | | | 175,502 | | | | .98 | | | | .75 | | | | 3.68 | | | | 17 | |
| | (.58 | ) | | | 8.84 | | | | (15.78 | ) | | | 160,491 | | | | .91 | | | | .52 | | | | 5.03 | | | | 86 | |
| | (.63 | ) | | | 11.09 | | | | 6.53 | | | | 194,815 | | | | .90 | | | | .50 | | | | 3.59 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.85 | | | | 4.25 | | | | 95,912 | | | | .47 | | | | .30 | | | | 1.84 | | | | 8 | |
| | (.41 | ) | | | 10.60 | | | | 2.32 | | | | 92,126 | | | | .49 | | | | .30 | | | | 4.00 | | | | 19 | |
| | (.31 | ) | | | 10.77 | | | | 12.73 | | | | 93,182 | | | | .47 | | | | .29 | | | | 2.93 | | | | 38 | |
| | (.48 | ) | | | 9.85 | | | | 17.71 | | | | 67,653 | | | | .48 | | | | .25 | | | | 4.18 | | | | 17 | |
| | (.63 | ) | | | 8.84 | | | | (15.34 | ) | | | 48,347 | | | | .41 | | | | .02 | | | | 5.48 | | | | 86 | |
| | (.69 | ) | | | 11.09 | | | | 7.10 | | | | 55,999 | | | | .40 | | | | — | | | | 4.02 | | | | 79 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Moderate Strategy Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,051.85 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.81 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,048.06 | | | $ | 1,018.40 | |
Expenses Paid During Period* | | $ | 6.62 | | | $ | 6.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,051.79 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.81 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 12 | | | Moderate Strategy Fund |
Russell Investment Company
Moderate Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000 .00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,053 .44 | | | $ | 1,024.22 | |
Expenses Paid During Period* | | $ | 0 .66 | | | $ | 0 .65 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.13% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000 .00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,052 .55 | | | $ | 1,022.97 | |
Expenses Paid During Period* | | $ | 1 .94 | | | $ | 1 .91 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.38% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000 .00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,051 .25 | | | $ | 1,021.73 | |
Expenses Paid During Period* | | $ | 3 .21 | | | $ | 3 .17 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.63% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000 .00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,052 .70 | | | $ | 1,023.37 | |
Expenses Paid During Period* | | $ | 1 .53 | | | $ | 1 .51 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.30% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Moderate Strategy Fund | | 13 |
Russell Investment Company
Moderate Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value $ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 13.4% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 2,046,387 | | | | 61,678 | |
Russell U.S. Quantitative Equity Fund | | | 2,032,574 | | | | 67,665 | |
Russell U.S. Small Cap Equity Fund | | | 909,976 | | | | 22,449 | |
| | | | | | | | |
| | | | | | | 151,792 | |
| | | | | | | | |
| | |
| Fixed Income - 57.7% | | | | | | | | |
Russell Global Opportunistic Credit Fund | | | 2,412,969 | | | | 24,974 | |
Russell Investment Grade Bond Fund | | | 9,665,868 | | | | 217,579 | |
Russell Strategic Bond Fund | | | 36,934,357 | | | | 408,124 | |
| | | | | | | | |
| | | | | | | 650,677 | |
| | | | | | | | |
| | |
| International Equities - 19.8% | | | | | | | | |
Russell Emerging Markets Fund | | | 1,842,037 | | | | 33,672 | |
Russell Global Equity Fund | | | 10,164,439 | | | | 89,752 | |
Russell International Developed Markets Fund | | | 3,428,944 | | | | 100,160 | |
| | | | | | | | |
| | | | | | | 223,584 | |
| | | | | | | | |
| | |
| Real Assets - 9.1% | | | | | | | | |
Russell Commodity Strategies Fund | | | 3,520,397 | | | | 33,514 | |
Russell Global Infrastructure Fund | | | 3,138,309 | | | | 34,082 | |
Russell Global Real Estate Securities Fund | | | 929,280 | | | | 34,607 | |
| | | | | | | | |
| | | | | | | 102,203 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $1,028,056) | | | | | | | 1,128,256 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | | | | (177 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,128,079 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 13.4 | |
Fixed Income | | | 57.7 | |
International Equities | | | 19.8 | |
Real Assets | | | 9.1 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 14 | | | Moderate Strategy Fund |
Russell Investment Company
Moderate Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,028,056 | |
Investments, at market | | | 1,128,256 | |
Receivables: | | | | |
Fund shares sold | | | 1,513 | |
From affiliates | | | 167 | |
| | | | |
Total assets | | | 1,129,936 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 302 | |
Fund shares redeemed | | | 590 | |
Accrued fees to affiliates | | | 787 | |
Other accrued expenses | | | 178 | |
| | | | |
Total liabilities | | | 1,857 | |
| | | | |
| | | | |
Net Assets | | $ | 1,128,079 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (709 | ) |
Accumulated net realized gain (loss) | | | (61,633 | ) |
Unrealized appreciation (depreciation) on investments | | | 100,200 | |
Shares of beneficial interest | | | 1,039 | |
Additional paid-in capital | | | 1,089,182 | |
| | | | |
Net Assets | | $ | 1,128,079 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.86 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.52 | |
Class A — Net assets | | $ | 225,889,925 | |
Class A — Shares outstanding ($.01 par value) | | | 20,801,634 | |
Net asset value per share: Class C(a) | | $ | 10.78 | |
Class C — Net assets | | $ | 308,751,303 | |
Class C — Shares outstanding ($.01 par value) | | | 28,639,418 | |
Net asset value per share: Class E(a) | | $ | 10.87 | |
Class E — Net assets | | $ | 93,190,974 | |
Class E — Shares outstanding ($.01 par value) | | | 8,571,053 | |
Net asset value per share: Class R1(a) | | $ | 10.91 | |
Class R1 — Net assets | | $ | 53,180,580 | |
Class R1 — Shares outstanding ($.01 par value) | | | 4,875,001 | |
Net asset value per share: Class R2(a) | | $ | 10.87 | |
Class R2 — Net assets | | $ | 66,624,736 | |
Class R2 — Shares outstanding ($.01 par value) | | | 6,127,304 | |
Net asset value per share: Class R3(a) | | $ | 10.91 | |
Class R3 — Net assets | | $ | 227,024,424 | |
Class R3 — Shares outstanding ($.01 par value) | | | 20,814,613 | |
Net asset value per share: Class S(a) | | $ | 10.90 | |
Class S — Net assets | | $ | 153,417,313 | |
Class S — Shares outstanding ($.01 par value) | | | 14,072,325 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 15 |
Russell Investment Company
Moderate Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 21,415 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 1,087 | |
Administrative fees | | | 272 | |
Custodian fees | | | 15 | |
Distribution fees - Class A | | | 267 | |
Distribution fees - Class C | | | 1,102 | |
Distribution fees - Class R3 | | | 288 | |
Transfer agent fees - Class A | | | 192 | |
Transfer agent fees - Class C | | | 264 | |
Transfer agent fees - Class E | | | 76 | |
Transfer agent fees - Class R1 | | | 44 | |
Transfer agent fees - Class R2 | | | 59 | |
Transfer agent fees - Class R3 | | | 207 | |
Transfer agent fees - Class S | | | 135 | |
Professional fees | | | 26 | |
Registration fees | | | 114 | |
Shareholder servicing fees - Class C | | | 367 | |
Shareholder servicing fees - Class E | | | 106 | |
Shareholder servicing fees - Class R2 | | | 83 | |
Shareholder servicing fees - Class R3 | | | 288 | |
Trustees’ fees | | | 12 | |
Printing fees | | | 17 | |
Miscellaneous | | | 13 | |
| | | | |
Expenses before reductions | | | 5,034 | |
Expense reductions | | | (1,200 | ) |
| | | | |
Net expenses | | | 3,834 | |
| | | | |
Net investment income (loss) | | | 17,581 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (770 | ) |
Capital gain distributions from Underlying Funds | | | 2,087 | |
| | | | |
Net realized gain (loss) | | | 1,317 | |
Net change in unrealized appreciation (depreciation) on investments | | | 35,784 | |
| | | | |
Net realized and unrealized gain (loss) | | | 37,101 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 54,682 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 16 | | | Statement of Operations |
Russell Investment Company
Moderate Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 17,581 | | | $ | 37,088 | |
Net realized gain (loss) | | | 1,317 | | | | 2,002 | |
Net change in unrealized appreciation (depreciation) | | | 35,784 | | | | (17,846 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 54,682 | | | | 21,244 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (3,712 | ) | | | (7,685 | ) |
Class C | | | (4,264 | ) | | | (7,889 | ) |
Class E | | | (1,462 | ) | | | (4,704 | ) |
Class R1 | | | (912 | ) | | | (1,294 | ) |
Class R2 | | | (1,228 | ) | | | (875 | ) |
Class R3 | | | (3,949 | ) | | | (9,572 | ) |
Class S | | | (2,763 | ) | | | (5,113 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (18,290 | ) | | | (37,132 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 16,635 | | | | (6,429 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 53,027 | | | | (22,317 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,075,052 | | | | 1,097,369 | |
| | | | | | | | |
End of period | | $ | 1,128,079 | | | $ | 1,075,052 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (709 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 17 |
Russell Investment Company
Moderate Strategy Fund
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)(e) | | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.51 | | | | .18 | | | | .36 | | | | .54 | | | | (.19 | ) | | | — | |
October 31, 2011 | | | 10.68 | | | | .38 | | | | (.18 | ) | | | .20 | | | | (.37 | ) | | | — | |
October 31, 2010 | | | 9.55 | | | | .25 | | | | 1.14 | | | | 1.39 | | | | (.26 | ) | | | — | |
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 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.44 | | | | .14 | | | | .35 | | | | .49 | | | | (.15 | ) | | | — | |
October 31, 2011 | | | 10.62 | | | | .28 | | | | (.15 | ) | | | .13 | | | | (.31 | ) | | | — | |
October 31, 2010 | | | 9.50 | | | | .17 | | | | 1.13 | | | | 1.30 | | | | (.18 | ) | | | — | |
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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.52 | | | | .17 | | | | .37 | | | | .54 | | | | (.19 | ) | | | — | |
October 31, 2011 | | | 10.68 | | | | .45 | | | | (.24 | ) | | | .21 | | | | (.37 | ) | | | — | |
October 31, 2010 | | | 9.55 | | | | .26 | | | | 1.13 | | | | 1.39 | | | | (.26 | ) | | | — | |
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 | ) |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.56 | | | | .20 | | | | .35 | | | | .55 | | | | (.20 | ) | | | — | |
October 31, 2011 | | | 10.72 | | | | .38 | | | | (.12 | ) | | | .26 | | | | (.42 | ) | | | — | |
October 31, 2010 | | | 9.59 | | | | .27 | | | | 1.14 | | | | 1.41 | | | | (.28 | ) | | | — | |
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 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.52 | | | | .19 | | | | .35 | | | | .54 | | | | (.19 | ) | | | — | |
October 31, 2011 | | | 10.69 | | | | .23 | | | | — | (i) | | | .23 | | | | (.40 | ) | | | — | |
October 31, 2010 | | | 9.56 | | | | .25 | | | | 1.14 | | | | 1.39 | | | | (.26 | ) | | | — | |
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 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.56 | | | | .18 | | | | .35 | | | | .53 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 10.72 | | | | .38 | | | | (.17 | ) | | | .21 | | | | (.37 | ) | | | — | |
October 31, 2010 | | | 9.59 | | | | .23 | | | | 1.13 | | | | 1.36 | | | | (.23 | ) | | | — | |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.55 | | | | .20 | | | | .35 | | | | .55 | | | | (.20 | ) | | | — | |
October 31, 2011 | | | 10.72 | | | | .37 | | | | (.14 | ) | | | .23 | | | | (.40 | ) | | | — | |
October 31, 2010 | | | 9.58 | | | | .28 | | | | 1.14 | | | | 1.42 | | | | (.28 | ) | | | — | |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value,
End of Period | | | % Total
Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets,
Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(e)(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c)(e) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.86 | | | | 5.18 | | | | 225,890 | | | | .72 | | | | .55 | | | | 1.68 | | | | 8 | |
| | (.37 | ) | | | 10.51 | | | | 1.95 | | | | 207,292 | | | | .73 | | | | .55 | | | | 3.53 | | | | 15 | |
| | (.26 | ) | | | 10.68 | | | | 14.75 | | | | 220,380 | | | | .71 | | | | .54 | | | | 2.51 | | | | 48 | |
| | (.47 | ) | | | 9.55 | | | | 18.43 | | | | 182,901 | | | | .72 | | | | .51 | | | | 3.34 | | | | 17 | |
| | (.82 | ) | | | 8.53 | | | | (24.05 | ) | | | 162,970 | | | | .64 | | | | .27 | | | | 5.36 | | | | 86 | |
| | (.61 | ) | | | 12.09 | | | | 10.36 | | | | 211,856 | | | | .63 | | | | .25 | | | | 3.56 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.78 | | | | 4.81 | | | | 308,751 | | | | 1.47 | | | | 1.30 | | | | 1.31 | | | | 8 | |
| | (.31 | ) | | | 10.44 | | | | 1.20 | | | | 288,055 | | | | 1.48 | | | | 1.30 | | | | 2.66 | | | | 15 | |
| | (.18 | ) | | | 10.62 | | | | 13.87 | | | | 270,529 | | | | 1.46 | | | | 1.29 | | | | 1.74 | | | | 48 | |
| | (.40 | ) | | | 9.50 | | | | 17.54 | | | | 221,669 | | | | 1.46 | | | | 1.26 | | | | 2.59 | | | | 17 | |
| | (.74 | ) | | | 8.49 | | | | (24.67 | ) | | | 196,167 | | | | 1.39 | | | | 1.02 | | | | 4.65 | | | | 86 | |
| | (.51 | ) | | | 12.04 | | | | 9.52 | | | | 262,501 | | | | 1.38 | | | | 1.00 | | | | 2.86 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.87 | | | | 5.18 | | | | 93,191 | | | | .72 | | | | .55 | | | | 1.56 | | | | 8 | |
| | (.37 | ) | | | 10.52 | | | | 2.00 | | | | 72,800 | | | | .73 | | | | .55 | | | | 4.21 | | | | 15 | |
| | (.26 | ) | | | 10.68 | | | | 14.74 | | | | 155,540 | | | | .71 | | | | .54 | | | | 2.54 | | | | 48 | |
| | (.47 | ) | | | 9.55 | | | | 18.28 | | | | 150,712 | | | | .72 | | | | .51 | | | | 3.36 | | | | 17 | |
| | (.82 | ) | | | 8.54 | | | | (24.03 | ) | | | 144,684 | | | | .64 | | | | .27 | | | | 5.46 | | | | 86 | |
| | (.61 | ) | | | 12.10 | | | | 10.34 | | | | 208,296 | | | | .63 | | | | .25 | | | | 3.60 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 10.91 | | | | 5.34 | | | | 53,181 | | | | .47 | | | | .13 | | | | 1.85 | | | | 8 | |
| | (.42 | ) | | | 10.56 | | | | 2.49 | | | | 44,486 | | | | .48 | | | | .12 | | | | 3.55 | | | | 15 | |
| | (.28 | ) | | | 10.72 | | | | 14.97 | | | | 28,704 | | | | .47 | | | | .27 | | | | 2.64 | | | | 48 | |
| | (.49 | ) | | | 9.59 | | | | 18.79 | | | | 14,348 | | | | .46 | | | | .26 | | | | 3.28 | | | | 17 | |
| | (.84 | ) | | | 8.56 | | | | (23.92 | ) | | | 3,047 | | | | .40 | | | | .02 | | | | 5.29 | | | | 86 | |
| | (.64 | ) | | | 12.14 | | | | 10.70 | | | | 2,104 | | | | .38 | | | | — | | | | 2.74 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.87 | | | | 5.25 | | | | 66,625 | | | | .72 | | | | .38 | | | | 1.78 | | | | 8 | |
| | (.40 | ) | | | 10.52 | | | | 2.17 | | | | 60,610 | | | | .73 | | | | .37 | | | | 2.14 | | | | 15 | |
| | (.26 | ) | | | 10.69 | | | | 14.74 | | | | 7,221 | | | | .71 | | | | .52 | | | | 2.50 | | | | 48 | |
| | (.46 | ) | | | 9.56 | | | | 18.42 | | | | 5,738 | | | | .72 | | | | .51 | | | | 3.51 | | | | 17 | |
| | (.82 | ) | | | 8.53 | | | | (24.03 | ) | | | 12,817 | | | | .65 | | | | .27 | | | | 4.26 | | | | 86 | |
| | (.60 | ) | | | 12.09 | | | | 10.28 | | | | 4,068 | | | | .63 | | | | .25 | | | | 3.26 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 10.91 | | | | 5.12 | | | | 227,024 | | | | .97 | | | | .63 | | | | 1.68 | | | | 8 | |
| | (.37 | ) | | | 10.56 | | | | 1.97 | | | | 248,661 | | | | .98 | | | | .62 | | | | 3.51 | | | | 15 | |
| | (.23 | ) | | | 10.72 | | | | 14.39 | | | | 288,375 | | | | .96 | | | | .77 | | | | 2.32 | | | | 48 | |
| | (.44 | ) | | | 9.59 | | | | 18.19 | | | | 276,878 | | | | .97 | | | | .76 | | | | 3.09 | | | | 17 | |
| | (.79 | ) | | | 8.56 | | | | (24.27 | ) | | | 265,507 | | | | .89 | | | | .52 | | | | 5.22 | | | | 86 | |
| | (.57 | ) | | | 12.13 | | | | 10.02 | | | | 394,039 | | | | .88 | | | | .50 | | | | 3.36 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 10.90 | | | | 5.27 | | | | 153,417 | | | | .47 | | | | .30 | | | | 1.84 | | | | 8 | |
| | (.40 | ) | | | 10.55 | | | | 2.21 | | | | 153,148 | | | | .48 | | | | .30 | | | | 3.49 | | | | 15 | |
| | (.28 | ) | | | 10.72 | | | | 15.09 | | | | 126,620 | | | | .46 | | | | .29 | | | | 2.77 | | | | 48 | |
| | (.49 | ) | | | 9.58 | | | | 18.65 | | | | 117,448 | | | | .47 | | | | .26 | | | | 3.54 | | | | 17 | |
| | (.84 | ) | | | 8.56 | | | | (23.85 | ) | | | 89,799 | | | | .39 | | | | .02 | | | | 5.67 | | | | 86 | |
| | (.64 | ) | | | 12.13 | | | | 10.61 | | | | 158,313 | | | | .38 | | | | — | | | | 3.86 | | | | 78 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Balanced Strategy Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,060.84 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.82 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,057.16 | | | $ | 1,018.40 | |
Expenses Paid During Period* | | $ | 6.65 | | | $ | 6.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,061.63 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.82 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 20 | | | Balanced Strategy Fund |
Russell Investment Company
Balanced Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,063.22 | | | $ | 1,024.22 | |
Expenses Paid During Period* | | $ | 0.67 | | | $ | 0.65 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.13% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,062.56 | | | $ | 1,022.97 | |
Expenses Paid During Period* | | $ | 1.95 | | | $ | 1.91 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.38% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,060.29 | | | $ | 1,021.73 | |
Expenses Paid During Period* | | $ | 3.23 | | | $ | 3.17 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.63% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,062.43 | | | $ | 1,023.37 | |
Expenses Paid During Period* | | $ | 1.54 | | | $ | 1.51 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.30% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Balanced Strategy Fund | | 21 |
Russell Investment Company
Balanced Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value $ | |
| | | | | | | | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 23.9% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 15,277,447 | | | | 460,462 | |
Russell U.S. Quantitative Equity Fund | | | 11,614,547 | | | | 386,649 | |
Russell U.S. Small Cap Equity Fund | | | 6,923,797 | | | | 170,810 | |
| | | | | | | | |
| | | | | | | 1,017,921 | |
| | | | | | | | |
| | |
| Fixed Income - 37.4% | | | | | | | | |
Russell Global Opportunistic Credit Fund | | | 13,309,573 | | | | 137,754 | |
Russell Strategic Bond Fund | | | 132,080,401 | | | | 1,459,489 | |
| | | | | | | | |
| | | | | | | 1,597,243 | |
| | | | | | | | |
| | |
| International Equities - 28.7% | | | | | | | | |
Russell Emerging Markets Fund | | | 9,234,398 | | | | 168,805 | |
Russell Global Equity Fund | | | 48,178,804 | | | | 425,419 | |
Russell International Developed Markets Fund | | | 21,614,504 | | | | 631,359 | |
| | | | | | | | |
| | | | | | | 1,225,583 | |
| | | | | | | | |
| | |
| Real Assets - 10.0% | | | | | | | | |
Russell Commodity Strategies Fund | | | 17,464,238 | | | | 166,259 | |
Russell Global Infrastructure Fund | | | 11,923,075 | | | | 129,485 | |
Russell Global Real Estate Securities Fund | | | 3,524,010 | | | | 131,234 | |
| | | | | | | | |
| | | | | | | 426,978 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $3,902,695) | | | | | | | 4,267,725 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | | | | (1,195 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 4,266,530 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 23.9 | |
Fixed Income | | | 37.4 | |
International Equities | | | 28.7 | |
Real Assets | | | 10.0 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 22 | | | Balanced Strategy Fund |
Russell Investment Company
Balanced Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 3,902,695 | |
Investments, at market | | | 4,267,725 | |
Receivables: | | | | |
Investments sold | | | 1,359 | |
Fund shares sold | | | 3,459 | |
From affiliates | | | 498 | |
| | | | |
Total assets | | | 4,273,041 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 2,834 | |
Accrued fees to affiliates | | | 3,033 | |
Other accrued expenses | | | 644 | |
| | | | |
Total liabilities | | | 6,511 | |
| | | | |
| | | | |
Net Assets | | $ | 4,266,530 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (2,730 | ) |
Accumulated net realized gain (loss) | | | (465,814 | ) |
Unrealized appreciation (depreciation) on investments | | | 365,030 | |
Shares of beneficial interest | | | 4,012 | |
Additional paid-in capital | | | 4,366,032 | |
| | | | |
Net Assets | | $ | 4,266,530 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.64 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.29 | |
Class A — Net assets | | $ | 1,093,148,493 | |
Class A — Shares outstanding ($.01 par value) | | | 102,744,196 | |
Net asset value per share: Class C(a) | | $ | 10.54 | |
Class C — Net assets | | $ | 1,304,981,728 | |
Class C — Shares outstanding ($.01 par value) | | | 123,775,304 | |
Net asset value per share: Class E(a) | | $ | 10.68 | |
Class E — Net assets | | $ | 169,054,267 | |
Class E — Shares outstanding ($.01 par value) | | | 15,836,428 | |
Net asset value per share: Class R1(a) | | $ | 10.73 | |
Class R1 — Net assets | | $ | 257,732,543 | |
Class R1 — Shares outstanding ($.01 par value) | | | 24,024,976 | |
Net asset value per share: Class R2(a) | | $ | 10.66 | |
Class R2 — Net assets | | $ | 262,546,178 | |
Class R2 — Shares outstanding ($.01 par value) | | | 24,629,676 | |
Net asset value per share: Class R3(a) | | $ | 10.67 | |
Class R3 — Net assets | | $ | 623,826,558 | |
Class R3 — Shares outstanding ($.01 par value) | | | 58,454,816 | |
Net asset value per share: Class S(a) | | $ | 10.73 | |
Class S — Net assets | | $ | 555,240,727 | |
Class S — Shares outstanding ($.01 par value) | | | 51,747,176 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 23 |
Russell Investment Company
Balanced Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 77,309 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 4,151 | |
Administrative fees | | | 1,017 | |
Custodian fees | | | 14 | |
Distribution fees - Class A | | | 1,322 | |
Distribution fees - Class C | | | 4,737 | |
Distribution fees - Class R3 | | | 805 | |
Transfer agent fees - Class A | | | 951 | |
Transfer agent fees - Class C | | | 1,135 | |
Transfer agent fees - Class E | | | 153 | |
Transfer agent fees - Class R1 | | | 207 | |
Transfer agent fees - Class R2 | | | 232 | |
Transfer agent fees - Class R3 | | | 578 | |
Transfer agent fees - Class S | | | 473 | |
Professional fees | | | 54 | |
Registration fees | | | 147 | |
Shareholder servicing fees - Class C | | | 1,579 | |
Shareholder servicing fees - Class E | | | 213 | |
Shareholder servicing fees - Class R2 | | | 322 | |
Shareholder servicing fees - Class R3 | | | 805 | |
Trustees’ fees | | | 47 | |
Printing fees | | | 53 | |
Miscellaneous | | | 31 | |
| | | | |
Expenses before reductions | | | 19,026 | |
Expense reductions | | | (3,993 | ) |
| | | | |
Net expenses | | | 15,033 | |
| | | | |
Net investment income (loss) | | | 62,276 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 183 | |
Capital gain distributions from Underlying Funds | | | 6,420 | |
| | | | |
Net realized gain (loss) | | | 6,603 | |
Net change in unrealized appreciation (depreciation) on investments | | | 175,202 | |
| | | | |
Net realized and unrealized gain (loss) | | | 181,805 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 244,081 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 24 | | | Statement of Operations |
Russell Investment Company
Balanced Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 62,276 | | | $ | 117,659 | |
Net realized gain (loss) | | | 6,603 | | | | (17,142 | ) |
Net change in unrealized appreciation (depreciation) | | | 175,202 | | | | (37,310 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 244,081 | | | | 63,207 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (17,287 | ) | | | (30,415 | ) |
Class C | | | (16,987 | ) | | | (29,031 | ) |
Class E | | | (2,783 | ) | | | (12,245 | ) |
Class R1 | | | (4,029 | ) | | | (4,455 | ) |
Class R2 | | | (4,458 | ) | | | (2,610 | ) |
Class R3 | | | (10,435 | ) | | | (21,970 | ) |
Class S | | | (9,027 | ) | | | (16,977 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (65,006 | ) | | | (117,703 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (84,624 | ) | | | (252,907 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 94,451 | | | | (307,403 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 4,172,079 | | | | 4,479,482 | |
| | | | | | | | |
End of period | | $ | 4,266,530 | | | $ | 4,172,079 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (2,730 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 25 |
Russell Investment Company
Balanced Strategy Fund
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)(e) | | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.20 | | | | .16 | | | | .45 | | | | .61 | | | | (.17 | ) | | | — | |
October 31, 2011 | | | 10.33 | | | | .29 | | | | (.13 | ) | | | .16 | | | | (.29 | ) | | | — | |
October 31, 2010 | | | 9.12 | | | | .22 | | | | 1.21 | | | | 1.43 | | | | (.22 | ) | | | — | |
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 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.11 | | | | .12 | | | | .45 | | | | .57 | | | | (.14 | ) | | | — | |
October 31, 2011 | | | 10.27 | | | | .21 | | | | (.14 | ) | | | .07 | | | | (.23 | ) | | | — | |
October 31, 2010 | | | 9.07 | | | | .14 | | | | 1.21 | | | | 1.35 | | | | (.15 | ) | | | — | |
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 | ) |
Class E | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.23 | | | | .16 | | | | .46 | | | | .62 | | | | (.17 | ) | | | — | |
October 31, 2011 | | | 10.36 | | | | .39 | | | | (.24 | ) | | | .15 | | | | (.28 | ) | | | — | |
October 31, 2010 | | | 9.15 | | | | .22 | | | | 1.21 | | | | 1.43 | | | | (.22 | ) | | | — | |
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 | ) |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.28 | | | | .18 | | | | .46 | | | | .64 | | | | (.19 | ) | | | — | |
October 31, 2011 | | | 10.41 | | | | .30 | | | | (.10 | ) | | | .20 | | | | (.33 | ) | | | — | |
October 31, 2010 | | | 9.19 | | | | .23 | | | | 1.23 | | | | 1.46 | | | | (.24 | ) | | | — | |
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 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.21 | | | | .17 | | | | .46 | | | | .63 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 10.36 | | | | .17 | | | | (.01 | ) | | | .16 | | | | (.31 | ) | | | — | |
October 31, 2010 | | | 9.14 | | | | .21 | | | | 1.23 | | | | 1.44 | | | | (.22 | ) | | | — | |
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 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.23 | | | | .16 | | | | .45 | | | | .61 | | | | (.17 | ) | | | — | |
October 31, 2011 | | | 10.36 | | | | .30 | | | | (.15 | ) | | | .15 | | | | (.28 | ) | | | — | |
October 31, 2010 | | | 9.15 | | | | .20 | | | | 1.20 | | | | 1.40 | | | | (.19 | ) | | | — | |
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 | ) |
Class S | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.28 | | | | .18 | | | | .45 | | | | .63 | | | | (.18 | ) | | | — | |
October 31, 2011 | | | 10.42 | | | | .32 | | | | (.15 | ) | | | .17 | | | | (.31 | ) | | | — | |
October 31, 2010 | | | 9.19 | | | | .24 | | | | 1.23 | | | | 1.47 | | | | (.24 | ) | | | — | |
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 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value,
End of Period | | | % Total
Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets,
Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(e)(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c)(e) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 10.64 | | | | 6.08 | | | | 1,093,147 | | | | .70 | | | | .55 | | | | 1.58 | | | | 5 | |
| | (.29 | ) | | | 10.20 | | | | 1.51 | | | | 1,058,489 | | | | .71 | | | | .55 | | | | 2.79 | | | | 9 | |
| | (.22 | ) | | | 10.33 | | | | 15.86 | | | | 1,095,814 | | | | .70 | | | | .54 | | | | 2.25 | | | | 24 | |
| | (.60 | ) | | | 9.12 | | | | 18.02 | | | | 1,018,019 | | | | .70 | | | | .52 | | | | 2.45 | | | | 11 | |
| | (.95 | ) | | | 8.35 | | | | (30.88 | ) | | | 964,226 | | | | .67 | | | | .27 | | | | 5.12 | | | | 18 | |
| | (.66 | ) | | | 13.10 | | | | 13.49 | | | | 1,352,284 | | | | .67 | | | | .25 | | | | 3.21 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.54 | | | | 5.72 | | | | 1,304,982 | | | | 1.45 | | | | 1.30 | | | | 1.20 | | | | 5 | |
| | (.23 | ) | | | 10.11 | | | | 0.64 | | | | 1,264,734 | | | | 1.46 | | | | 1.30 | | | | 2.03 | | | | 9 | |
| | (.15 | ) | | | 10.27 | | | | 14.99 | | | | 1,310,397 | | | | 1.45 | | | | 1.29 | | | | 1.49 | | | | 24 | |
| | (.54 | ) | | | 9.07 | | | | 17.14 | | | | 1,188,328 | | | | 1.45 | | | | 1.27 | | | | 1.71 | | | | 11 | |
| | (.86 | ) | | | 8.31 | | | | (31.37 | ) | | | 1,166,957 | | | | 1.42 | | �� | | 1.02 | | | | 4.35 | | | | 18 | |
| | (.57 | ) | | | 13.03 | | | | 12.60 | | | | 1,770,369 | | | | 1.42 | | | | 1.00 | | | | 2.44 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 10.68 | | | | 6.16 | | | | 169,054 | | | | .70 | | | | .55 | | | | 1.57 | | | | 5 | |
| | (.28 | ) | | | 10.23 | | | | 1.42 | | | | 167,108 | | | | .71 | | | | .55 | | | | 3.64 | | | | 9 | |
| | (.22 | ) | | | 10.36 | | | | 15.81 | | | | 526,084 | | | | .70 | | | | .54 | | | | 2.24 | | | | 24 | |
| | (.60 | ) | | | 9.15 | | | | 18.09 | | | | 501,582 | | | | .70 | | | | .52 | | | | 2.46 | | | | 11 | |
| | (.95 | ) | | | 8.37 | | | | (30.84 | ) | | | 489,750 | | | | .67 | | | | .27 | | | | 5.18 | | | | 18 | |
| | (.66 | ) | | | 13.12 | | | | 13.47 | | | | 760,312 | | | | .67 | | | | .25 | | | | 3.26 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.73 | | | | 6.32 | | | | 257,733 | | | | .45 | | | | .13 | | | | 1.72 | | | | 5 | |
| | (.33 | ) | | | 10.28 | | | | 1.94 | | | | 207,763 | | | | .47 | | | | .12 | | | | 2.84 | | | | 9 | |
| | (.24 | ) | | | 10.41 | | | | 16.14 | | | | 113,700 | | | | .45 | | | | .27 | | | | 2.35 | | | | 24 | |
| | (.62 | ) | | | 9.19 | | | | 18.31 | | | | 57,963 | | | | .45 | | | | .27 | | | | 2.55 | | | | 11 | |
| | (.98 | ) | | | 8.41 | | | | (30.66 | ) | | | 24,105 | | | | .42 | | | | .02 | | | | 5.06 | | | | 18 | |
| | (.70 | ) | | | 13.18 | | | | 13.69 | | | | 27,053 | | | | .42 | | | | — | | | | 2.42 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 10.66 | | | | 6.25 | | | | 262,546 | | | | .70 | | | | .38 | | | | 1.68 | | | | 5 | |
| | (.31 | ) | | | 10.21 | | | | 1.52 | | | | 250,510 | | | | .72 | | | | .37 | | | | 1.64 | | | | 9 | |
| | (.22 | ) | | | 10.36 | | | | 15.95 | | | | 31,620 | | | | .70 | | | | .52 | | | | 2.19 | | | | 24 | |
| | (.60 | ) | | | 9.14 | | | | 18.04 | | | | 28,403 | | | | .70 | | | | .52 | | | | 2.54 | | | | 11 | |
| | (.95 | ) | | | 8.36 | | | | (30.89 | ) | | | 42,341 | | | | .68 | | | | .27 | | | | 4.00 | | | | 18 | |
| | (.66 | ) | | | 13.12 | | | | 13.48 | | | | 22,546 | | | | .67 | | | | .25 | | | | 3.21 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 10.67 | | | | 6.03 | | | | 623,827 | | | | .95 | | | | .63 | | | | 1.57 | | | | 5 | |
| | (.28 | ) | | | 10.23 | | | | 1.43 | | | | 697,038 | | | | .96 | | | | .62 | | | | 2.82 | | | | 9 | |
| | (.19 | ) | | | 10.36 | | | | 15.52 | | | | 840,066 | | | | .95 | | | | .77 | | | | 2.03 | | | | 24 | |
| | (.58 | ) | | | 9.15 | | | | 17.67 | | | | 827,996 | | | | .95 | | | | .77 | | | | 2.21 | | | | 11 | |
| | (.92 | ) | | | 8.38 | | | | (30.95 | ) | | | 812,715 | | | | .92 | | | | .52 | | | | 4.97 | | | | 18 | |
| | (.63 | ) | | | 13.12 | | | | 13.16 | | | | 1,307,641 | | | | .92 | | | | .50 | | | | 3.04 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 10.73 | | | | 6.24 | | | | 555,241 | | | | .45 | | | | .30 | | | | 1.69 | | | | 5 | |
| | (.31 | ) | | | 10.28 | | | | 1.65 | | | | 526,437 | | | | .47 | | | | .30 | | | | 3.03 | | | | 9 | |
| | (.24 | ) | | | 10.42 | | | | 16.25 | | | | 561,801 | | | | .45 | | | | .29 | | | | 2.49 | | | | 24 | |
| | (.62 | ) | | | 9.19 | | | | 18.28 | | | | 527,088 | | | | .45 | | | | .27 | | | | 2.70 | | | | 11 | |
| | (.98 | ) | | | 8.41 | | | | (30.66 | ) | | | 484,456 | | | | .42 | | | | .02 | | | | 5.33 | | | | 18 | |
| | (.70 | ) | | | 13.18 | | | | 13.69 | | | | 746,007 | | | | .42 | | | | — | | | | 3.59 | | | | 34 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Growth Strategy Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,066.27 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.83 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,061.93 | | | $ | 1,018.40 | |
Expenses Paid During Period* | | $ | 6.66 | | | $ | 6.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,066.02 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.83 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
Russell Investment Company
Growth Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,068.59 | | | $ | 1,024.22 | |
Expenses Paid During Period* | | $ | 0.67 | | | $ | 0.65 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.13% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,066.87 | | | $ | 1,022.97 | |
Expenses Paid During Period* | | $ | 1.95 | | | $ | 1.91 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.38% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,065.68 | | | $ | 1,021.73 | |
Expenses Paid During Period* | | $ | 3.24 | | | $ | 3.17 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.63% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,067.78 | | | $ | 1,023.37 | |
Expenses Paid During Period* | | $ | 1.54 | | | $ | 1.51 | |
| * | Expenses are equal to the Fund's annualized expense ratio of 0.30% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
Russell Investment Company
Growth Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 30.1% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 11,562,475 | | | | 348,493 | |
Russell U.S. Quantitative Equity Fund | | | 8,866,548 | | | | 295,167 | |
Russell U.S. Small Cap Equity Fund | | | 6,525,644 | | | | 160,988 | |
| | | | | | | | |
| | | | | | | 804,648 | |
| | | | | | | | |
| | |
| Fixed Income - 18.0% | | | | | | | | |
Russell Global Opportunistic Credit Fund | | | 11,017,856 | | | | 114,035 | |
Russell Strategic Bond Fund | | | 33,177,337 | | | | 366,609 | |
| | | | | | | | |
| | | | | | | 480,644 | |
| | | | | | | | |
| | |
| International Equities - 37.9% | | | | | | | | |
Russell Emerging Markets Fund | | | 7,291,220 | | | | 133,283 | |
Russell Global Equity Fund | | | 42,273,566 | | | | 373,276 | |
Russell International Developed Markets Fund | | | 17,342,338 | | | | 506,570 | |
| | | | | | | | |
| | | | | | | 1,013,129 | |
| | | | | | | | |
| | |
| Real Assets - 14.0% | | | | | | | | |
Russell Commodity Strategies Fund | | | 16,487,446 | | | | 156,961 | |
Russell Global Infrastructure Fund | | | 9,936,760 | | | | 107,913 | |
Russell Global Real Estate Securities Fund | | | 2,911,243 | | | | 108,415 | |
| | | | | | | | |
| | | | | | | 373,289 | |
| | | | | | | | |
| | |
Total Investments - 100.0% (identified cost $2,463,709) | | | | | | | 2,671,710 | |
| | |
Other Assets and Liabilities, Net - (0.0%) | | | | | | | (765 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 2,670,945 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 30.1 | |
Fixed Income | | | 18.0 | |
International Equities | | | 37.9 | |
Real Assets | | | 14.0 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Growth Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 2,463,709 | |
Investments, at market | | | 2,671,710 | |
Receivables: | | | | |
Investments sold | | | 1,471 | |
Fund shares sold | | | 2,762 | |
From affiliates | | | 316 | |
| | | | |
Total assets | | | 2,676,259 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 2,849 | |
Accrued fees to affiliates | | | 1,886 | |
Other accrued expenses | | | 579 | |
| | | | |
Total liabilities | | | 5,314 | |
| | | | |
| | | | |
Net Assets | | $ | 2,670,945 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (1,696 | ) |
Accumulated net realized gain (loss) | | | (487,176 | ) |
Unrealized appreciation (depreciation) on investments | | | 208,001 | |
Shares of beneficial interest | | | 2,667 | |
Additional paid-in capital | | | 2,949,149 | |
| | | | |
Net Assets | | $ | 2,670,945 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.04 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 10.65 | |
Class A — Net assets | | $ | 749,008,969 | |
Class A — Shares outstanding ($.01 par value) | | | 74,614,308 | |
Net asset value per share: Class C(a) | | $ | 9.87 | |
Class C — Net assets | | $ | 739,730,761 | |
Class C — Shares outstanding ($.01 par value) | | | 74,957,812 | |
Net asset value per share: Class E(a) | | $ | 10.07 | |
Class E — Net assets | | $ | 128,714,986 | |
Class E — Shares outstanding ($.01 par value) | | | 12,784,266 | |
Net asset value per share: Class R1(a) | | $ | 10.14 | |
Class R1 — Net assets | | $ | 144,191,056 | |
Class R1 — Shares outstanding ($.01 par value) | | | 14,224,506 | |
Net asset value per share: Class R2(a) | | $ | 10.07 | |
Class R2 — Net assets | | $ | 209,024,030 | |
Class R2 — Shares outstanding ($.01 par value) | | | 20,763,759 | |
Net asset value per share: Class R3(a) | | $ | 10.07 | |
Class R3 — Net assets | | $ | 442,886,900 | |
Class R3 — Shares outstanding ($.01 par value) | | | 43,972,456 | |
Net asset value per share: Class S(a) | | $ | 10.14 | |
Class S — Net assets | | $ | 257,388,643 | |
Class S — Shares outstanding ($.01 par value) | | | 25,391,309 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 31 |
Russell Investment Company
Growth Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 44,579 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 2,629 | |
Administrative fees | | | 655 | |
Custodian fees | | | 15 | |
Distribution fees - Class A | | | 912 | |
Distribution fees - Class C | | | 2,732 | |
Distribution fees - Class R3 | | | 571 | |
Transfer agent fees - Class A | | | 656 | |
Transfer agent fees - Class C | | | 654 | |
Transfer agent fees - Class E | | | 118 | |
Transfer agent fees - Class R1 | | | 115 | |
Transfer agent fees - Class R2 | | | 185 | |
Transfer agent fees - Class R3 | | | 410 | |
Transfer agent fees - Class S | | | 223 | |
Professional fees | | | 40 | |
Registration fees | | | 107 | |
Shareholder servicing fees - Class C | | | 911 | |
Shareholder servicing fees - Class E | | | 164 | |
Shareholder servicing fees - Class R2 | | | 257 | |
Shareholder servicing fees - Class R3 | | | 572 | |
Trustees’ fees | | | 31 | |
Printing fees | | | 5 | |
Miscellaneous | | | 22 | |
| | | | |
Expenses before reductions | | | 11,984 | |
Expense reductions | | | (2,605 | ) |
| | | | |
Net expenses | | | 9,379 | |
| | | | |
Net investment income (loss) | | | 35,200 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (7,593 | ) |
Capital gain distributions from Underlying Funds | | | 5,153 | |
| | | | |
Net realized gain (loss) | | | (2,440 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 134,297 | |
| | | | |
Net realized and unrealized gain (loss) | | | 131,857 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 167,057 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 32 | | | Statement of Operations |
Russell Investment Company
Growth Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 35,200 | | | $ | 58,803 | |
Net realized gain (loss) | | | (2,440 | ) | | | (24,755 | ) |
Net change in unrealized appreciation (depreciation) | | | 134,297 | | | | (3,752 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 167,057 | | | | 30,296 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (10,656 | ) | | | (16,052 | ) |
Class C | | | (8,643 | ) | | | (14,001 | ) |
Class E | | | (1,931 | ) | | | (7,595 | ) |
Class R1 | | | (2,039 | ) | | | (1,868 | ) |
Class R2 | | | (3,182 | ) | | | (1,079 | ) |
Class R3 | | | (6,633 | ) | | | (12,053 | ) |
Class S | | | (3,812 | ) | | | (6,400 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (36,896 | ) | | | (59,048 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (130,501 | ) | | | (325,462 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (340 | ) | | | (354,214 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 2,671,285 | | | | 3,025,499 | |
| | | | | | | | |
End of period | | $ | 2,670,945 | | | $ | 2,671,285 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (1,696 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 33 |
Russell Investment Company
Growth Strategy Fund
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)(e) | | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions from Net
Investment Income | | | $
Distributions
from Net Realized Gain | | | $
Return of
Capital | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.56 | | | | .14 | | | | .48 | | | | .62 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.68 | | | | .21 | | | | (.13 | ) | | | .08 | | | | (.20 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.43 | | | | .15 | | | | 1.24 | | | | 1.39 | | | | (.14 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.41 | | | | .10 | | | | .47 | | | | .57 | | | | (.11 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.57 | | | | .13 | | | | (.12 | ) | | | .01 | | | | (.17 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.36 | | | | .08 | | | | 1.23 | | | | 1.31 | | | | (.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 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.59 | | | | .14 | | | | .48 | | | | .62 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.69 | | | | .29 | | | | (.20 | ) | | | .09 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.44 | | | | .15 | | | | 1.24 | | | | 1.39 | | | | (.14 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.65 | | | | .15 | | | | .50 | | | | .65 | | | | (.16 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.75 | | | | .22 | | | | (.09 | ) | | | .13 | | | | (.23 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.49 | | | | .16 | | | | 1.26 | | | | 1.42 | | | | (.16 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.59 | | | | .15 | | | | .48 | | | | .63 | | | | (.15 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.70 | | | | .10 | | | | — | (i) | | | .10 | | | | (.21 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.45 | | | | .15 | | | | 1.24 | | | | 1.39 | | | | (.14 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.59 | | | | .14 | | | | .48 | | | | .62 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.71 | | | | .21 | | | | (.14 | ) | | | .07 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.46 | | | | .13 | | | | 1.25 | | | | 1.38 | | | | (.13 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.65 | | | | .15 | | | | .49 | | | | .64 | | | | (.15 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.76 | | | | .24 | | | | (.14 | ) | | | .10 | | | | (.21 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.49 | | | | .17 | | | | 1.26 | | | | 1.43 | | | | (.16 | ) | | | — | | | | — | |
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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $
Net Asset Value,
End of Period | | | % Total
Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets, Gross(f)(g) | | | %
Ratio of Expenses
to Average Net Assets, Net(e)(f)(g) | | | % Ratio of Net Investment Income
to Average Net Assets(b)(c)(e) | | | % Portfolio Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.04 | | | | 6.63 | | | | 749,009 | | | | .70 | | | | .55 | | | | 1.41 | | | | 5 | |
| | (.20 | ) | | | 9.56 | | | | 0.75 | | | | 734,024 | | | | .73 | | | | .55 | | | | 2.12 | | | | 7 | |
| | (.14 | ) | | | 9.68 | | | | 16.67 | | | | 791,754 | | | | .71 | | | | .54 | | | | 1.68 | | | | 31 | |
| | (.70 | ) | | | 8.43 | | | | 16.83 | | | | 745,197 | | | | .70 | | | | .52 | | | | 1.57 | | | | 9 | |
| | (1.02 | ) | | | 7.97 | | | | (36.98 | ) | | | 728,441 | | | | .69 | | | | .28 | | | | 4.66 | | | | 12 | |
| | (.66 | ) | | | 13.76 | | | | 16.26 | | | | 1,055,684 | | | | .68 | | | | .25 | | | | 2.62 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.11 | ) | | | 9.87 | | | | 6.19 | | | | 739,731 | | | | 1.45 | | | | 1.30 | | | | 1.04 | | | | 5 | |
| | (.17 | ) | | | 9.41 | | | | 0.05 | | | | 738,624 | | | | 1.48 | | | | 1.30 | | | | 1.36 | | | | 7 | |
| | (.10 | ) | | | 9.57 | | | | 15.74 | | | | 798,130 | | | | 1.46 | | | | 1.29 | | | | .93 | | | | 31 | |
| | (.66 | ) | | | 8.36 | | | | 15.94 | | | | 762,423 | | | | 1.45 | | | | 1.27 | | | | .82 | | | | 9 | |
| | (.93 | ) | | | 7.92 | | | | (37.44 | ) | | | 742,998 | | | | 1.44 | | | | 1.02 | | | | 3.91 | | | | 12 | |
| | (.56 | ) | | | 13.67 | | | | 15.39 | | | | 1,176,448 | | | | 1.43 | | | | 1.00 | | | | 1.93 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.07 | | | | 6.60 | | | | 128,715 | | | | .70 | | | | .55 | | | | 1.42 | | | | 5 | |
| | (.19 | ) | | | 9.59 | | | | 0.88 | | | | 130,274 | | | | .72 | | | | .55 | | | | 2.92 | | | | 7 | |
| | (.14 | ) | | | 9.69 | | | | 16.65 | | | | 406,837 | | �� | | .71 | | | | .54 | | | | 1.67 | | | | 31 | |
| | (.70 | ) | | | 8.44 | | | | 16.80 | | | | 388,051 | | | | .70 | | | | .52 | | | | 1.57 | | | | 9 | |
| | (1.02 | ) | | | 7.98 | | | | (37.01 | ) | | | 372,580 | | | | .69 | | | | .27 | | | | 4.80 | | | | 12 | |
| | (.66 | ) | | | 13.78 | | | | 16.23 | | | | 632,163 | | | | .68 | | | | .25 | | | | 2.81 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.16 | ) | | | 10.14 | | | | 6.86 | | | | 144,191 | | | | .45 | | | | .13 | | | | 1.56 | | | | 5 | |
| | (.23 | ) | | | 9.65 | | | | 1.23 | | | | 116,928 | | | | .48 | | | | .12 | | | | 2.22 | | | | 7 | |
| | (.16 | ) | | | 9.75 | | | | 16.92 | | | | 74,972 | | | | .46 | | | | .26 | | | | 1.81 | | | | 31 | |
| | (.72 | ) | | | 8.49 | | | | 17.13 | | | | 25,180 | | | | .45 | | | | .27 | | | | 1.72 | | | | 9 | |
| | (1.05 | ) | | | 8.02 | | | | (36.86 | ) | | | 14,138 | | | | .44 | | | | .03 | | | | 4.46 | | | | 12 | |
| | (.70 | ) | | | 13.85 | | | | 16.53 | | | | 15,576 | | | | .43 | | | | — | | | | 1.62 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.07 | | | | 6.69 | | | | 209,024 | | | | .70 | | | | .38 | | | | 1.51 | | | | 5 | |
| | (.21 | ) | | | 9.59 | | | | 1.00 | | | | 196,374 | | | | .73 | | | | .37 | | | | 1.03 | | | | 7 | |
| | (.14 | ) | | | 9.70 | | | | 16.64 | | | | 23,018 | | | | .71 | | | | .52 | | | | 1.63 | | | | 31 | |
| | (.70 | ) | | | 8.45 | | | | 16.90 | | | | 16,477 | | | | .70 | | | | .52 | | | | 1.64 | | | | 9 | |
| | (1.02 | ) | | | 7.98 | | | | (37.04 | ) | | | 21,959 | | | | .69 | | | | .28 | | | | 3.62 | | | | 12 | |
| | (.65 | ) | | | 13.79 | | | | 16.30 | | | | 16,800 | | | | .68 | | | | .25 | | | | 2.61 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.07 | | | | 6.57 | | | | 442,887 | | | | .95 | | | | .63 | | | | 1.41 | | | | 5 | |
| | (.19 | ) | | | 9.59 | | | | 0.70 | | | | 500,954 | | | | .98 | | | | .62 | | | | 2.12 | | | | 7 | |
| | (.13 | ) | | | 9.71 | | | | 16.41 | | | | 618,128 | | | | .96 | | | | .77 | | | | 1.45 | | | | 31 | |
| | (.69 | ) | | | 8.46 | | | | 16.48 | | | | 601,602 | | | | .95 | | | | .77 | | | | 1.32 | | | | 9 | |
| | (.99 | ) | | | 8.00 | | | | (37.17 | ) | | | 577,865 | | | | .94 | | | | .52 | | | | 4.57 | | | | 12 | |
| | (.63 | ) | | | 13.81 | | | | 15.97 | | | | 992,589 | | | | .93 | | | | .50 | | | | 2.55 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.14 | | | | 6.78 | | | | 257,388 | | | | .45 | | | | .30 | | | | 1.52 | | | | 5 | |
| | (.21 | ) | | | 9.65 | | | | 1.01 | | | | 254,107 | | | | .48 | | | | .30 | | | | 2.37 | | | | 7 | |
| | (.16 | ) | | | 9.76 | | | | 17.02 | | | | 312,660 | | | | .46 | | | | .29 | | | | 1.93 | | | | 31 | |
| | (.72 | ) | | | 8.49 | | | | 17 .12 | | | | 303,597 | | | | .45 | | | | .27 | | | | 1.81 | | | | 9 | |
| | (1.05 | ) | | | 8.02 | | | | (36.86 | ) | | | 279,570 | | | | .44 | | | | .02 | | | | 5.08 | | | | 12 | |
| | (.70 | ) | | | 13.85 | | | | 16.53 | | | | 500,465 | | | | .43 | | | | — | | | | 3.08 | | | | 16 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
Equity Growth Strategy Fund
Shareholder Expense Example — April 30, 2012 (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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,072.80 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.83 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class C | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,068.81 | | | $ | 1,018.40 | |
Expenses Paid During Period* | | $ | 6.69 | | | $ | 6.52 | |
| * | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,072.04 | | | $ | 1,022.13 | |
Expenses Paid During Period* | | $ | 2.83 | | | $ | 2.77 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.55% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | |
| | 36 | | | Equity Growth Strategy Fund |
Russell Investment Company
Equity Growth Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.67 | | | $ | 1,024.22 | |
Expenses Paid During Period* | | $ | 0.67 | | | $ | 0.65 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.13% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,072.67 | | | $ | 1,022.97 | |
Expenses Paid During Period* | | $ | 1.96 | | | $ | 1.91 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.38% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,072.27 | | | $ | 1,021.73 | |
Expenses Paid During Period* | | $ | 3.25 | | | $ | 3.17 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.63% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,073.76 | | | $ | 1,023.37 | |
Expenses Paid During Period* | | $ | 1.55 | | | $ | 1.51 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.30% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | |
| Equity Growth Strategy Fund | | 37 |
Russell Investment Company
Equity Growth Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value $ | |
| | | | | | | | |
| Investments - 100.1% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 36.1% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 5,950,193 | | | | 179,339 | |
Russell U.S. Quantitative Equity Fund | | | 5,029,681 | | | | 167,438 | |
Russell U.S. Small Cap Equity Fund | | | 3,394,601 | | | | 83,745 | |
| | | | | | | | |
| | | | | | | 430,522 | |
| | | | | | | | |
| | |
| Fixed Income - 5.0% | | | | | | | | |
Russell Global Opportunistic Credit Fund | | | 5,757,846 | | | | 59,593 | |
| | | | | | | | |
| | |
| International Equities - 43.9% | | | | | | | | |
Russell Emerging Markets Fund | | | 4,557,121 | | | | 83,304 | |
Russell Global Equity Fund | | | 18,866,238 | | | | 166,589 | |
Russell International Developed Markets Fund | | | 9,368,879 | | | | 273,665 | |
| | | | | | | | |
| | | | | | | 523,558 | |
| | | | | | | | |
| | |
| Real Assets - 15.1% | | | | | | | | |
Russell Commodity Strategies Fund | | | 7,528,977 | | | | 71,676 | |
Russell Global Infrastructure Fund | | | 4,438,101 | | | | 48,198 | |
Russell Global Real Estate Securities Fund | | | 1,623,934 | | | | 60,475 | |
| | | | | | | | |
| | | | | | | 180,349 | |
| | | | | | | | |
| | |
Total Investments - 100.1%
(identified cost $1,108,745) | | | | | | | 1,194,022 | |
| | |
Other Assets and Liabilities,
Net - (0.1%) | | | | | | | (733 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,193,289 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 36.1 | |
Fixed Income | | | 5.0 | |
International Equities | | | 43.9 | |
Real Assets | | | 15.1 | |
| | | | |
Total Investments | | | 100.1 | |
Other Assets and Liabilities, Net | | | (0.1 | ) |
| | | | |
| | | 100.0 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 38 | | | Equity Growth Strategy Fund |
Russell Investment Company
Equity Growth Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,108,745 | |
Investments, at market | | | 1,194,022 | |
Receivables: | | | | |
Fund shares sold | | | 1,077 | |
From affiliates | | | 156 | |
| | | | |
Total assets | | | 1,195,255 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 74 | |
Fund shares redeemed | | | 650 | |
Accrued fees to affiliates | | | 835 | |
Other accrued expenses | | | 407 | |
| | | | |
Total liabilities | | | 1,966 | |
| | | | |
| | | | |
Net Assets | | $ | 1,193,289 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | 1,374 | |
Accumulated net realized gain (loss) | | | (346,059 | ) |
Unrealized appreciation (depreciation) on investments | | | 85,277 | |
Shares of beneficial interest | | | 1,302 | |
Additional paid-in capital | | | 1,451,395 | |
| | | | |
Net Assets | | $ | 1,193,289 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 9.47 | |
Maximum offering price per share (Net asset value pluss ales charge of 5.75%): Class A | | $ | 10.05 | |
Class A — Net assets | | $ | 234,644,098 | |
Class A — Shares outstanding ($.01 par value) | | | 24,774,647 | |
Net asset value per share: Class C(a) | | $ | 8.68 | |
Class C — Net assets | | $ | 340,759,735 | |
Class C — Shares outstanding ($.01 par value) | | | 39,253,398 | |
Net asset value per share: Class E(a) | | $ | 9.27 | |
Class E — Net assets | | $ | 59,861,912 | |
Class E — Shares outstanding ($.01 par value) | | | 6,457,224 | |
Net asset value per share: Class R1(a) | | $ | 9.50 | |
Class R1 — Net assets | | $ | 64,106,960 | |
Class R1 — Shares outstanding ($.01 par value) | | | 6,749,862 | |
Net asset value per share: Class R2(a) | | $ | 9.29 | |
Class R2 — Net assets | | $ | 95,329,362 | |
Class R2 — Shares outstanding ($.01 par value) | | | 10,257,248 | |
Net asset value per share: Class R3(a) | | $ | 9.20 | |
Class R3 — Net assets | | $ | 210,325,470 | |
Class R3 — Shares outstanding ($.01 par value) | | | 22,856,947 | |
Net asset value per share: Class S(a) | | $ | 9.49 | |
Class S — Net assets | | $ | 188,261,694 | |
Class S — Shares outstanding ($.01 par value) | | | 19,840,252 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 39 |
Russell Investment Company
Equity Growth Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 18,115 | |
| | | | |
| |
Expenses | | | | |
Advisory fees | | | 1,172 | |
Administrative fees | | | 293 | |
Custodian fees | | | 14 | |
Distribution fees - Class A | | | 286 | |
Distribution fees - Class C | | | 1,271 | |
Distribution fees - Class R3 | | | 269 | |
Transfer agent fees - Class A | | | 206 | |
Transfer agent fees - Class C | | | 304 | |
Transfer agent fees - Class E | | | 53 | |
Transfer agent fees - Class R1 | | | 52 | |
Transfer agent fees - Class R2 | | | 85 | |
Transfer agent fees - Class R3 | | | 193 | |
Transfer agent fees - Class S | | | 159 | |
Professional fees | | | 25 | |
Registration fees | | | 116 | |
Shareholder servicing fees - Class C | | | 424 | |
Shareholder servicing fees - Class E | | | 73 | |
Shareholder servicing fees - Class R2 | | | 118 | |
Shareholder servicing fees - Class R3 | | | 270 | |
Trustees’ fees | | | 14 | |
Miscellaneous | | | 10 | |
| | | | |
Expenses before reductions | | | 5,407 | |
Expense reductions | | | (1,257 | ) |
| | | | |
Net expenses | | | 4,150 | |
| | | | |
Net investment income (loss) | | | 13,965 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (6,088 | ) |
Capital gain distributions from Underlying Funds | | | 3,217 | |
| | | | |
Net realized gain (loss) | | | (2,871 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 70,524 | |
| | | | |
Net realized and unrealized gain (loss) | | | 67,653 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 81,618 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 40 | | | Statement of Operations |
Russell Investment Company
Equity Growth Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 13,965 | | | $ | 18,400 | |
Net realized gain (loss) | | | (2,871 | ) | | | (12,531 | ) |
Net change in unrealized appreciation (depreciation) | | | 70,524 | | | | 8,586 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 81,618 | | | | 14,455 | |
| | | | | | | | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (2,514 | ) | | | (3,301 | ) |
Class C | | | (3,531 | ) | | | (4,880 | ) |
Class E | | | (647 | ) | | | (2,141 | ) |
Class R1 | | | (734 | ) | | | (544 | ) |
Class R2 | | | (1,161 | ) | | | (399 | ) |
Class R3 | | | (2,433 | ) | | | (3,796 | ) |
Class S | | | (2,126 | ) | | | (2,784 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (13,146 | ) | | | (17,845 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (69,310 | ) | | | (169,546 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (838 | ) | | | (172,936 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 1,194,127 | | | | 1,367,063 | |
| | | | | | | | |
End of period | | $ | 1,193,289 | | | $ | 1,194,127 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | 1,374 | | | $ | 555 | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 41 |
Russell Investment Company
Equity Growth Strategy Fund
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)(e) | | | $ Net Realized
and Unrealized
Gain (Loss) | | | $ Total from
Investment
Operations | | | $ Distributions
from Net
Investment Income | | | $
Distributions
from Net
Realized Gain | | | $
Return of
Capital | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.93 | | | | .11 | | | | .53 | | | | .64 | | | | (.10 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.00 | | | | .14 | | | | (.09 | ) | | | .05 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.80 | | | | .10 | | | | 1.19 | | | | 1.29 | | | | (.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 | ) | | | — | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.21 | | | | .07 | | | | .49 | | | | .56 | | | | (.09 | ) | | | — | | | | — | |
October 31, 2011 | | | 8.34 | | | | .07 | | | | (.09 | ) | | | (.02 | ) | | | (.11 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.27 | | | | .04 | | | | 1.11 | | | | 1.15 | | | | (.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 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.75 | | | | .11 | | | | .51 | | | | .62 | | | | (.10 | ) | | | — | | | | — | |
October 31, 2011 | | | 8.81 | | | | .20 | | | | (.14 | ) | | | .06 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.64 | | | | .10 | | | | 1.17 | | | | 1.27 | | | | (.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 | ) | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.95 | | | | .13 | | | | .54 | | | | .67 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2011 | | | 8.99 | | | | .16 | | | | (.08 | ) | | | .08 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.78 | | | | .12 | | | | 1.19 | | | | 1.31 | | | | (.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 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.77 | | | | .12 | | | | .51 | | | | .63 | | | | (.11 | ) | | | — | | | | — | |
October 31, 2011 | | | 8.82 | | | | .09 | | | | (.02 | ) | | | .07 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.64 | | | | .10 | | | | 1.18 | | | | 1.28 | | | | (.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 | ) | | | — | |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.68 | | | | .11 | | | | .51 | | | | .62 | | | | (.10 | ) | | | — | | | | — | |
October 31, 2011 | | | 8.76 | | | | .13 | | | | (.09 | ) | | | .04 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.60 | | | | .08 | | | | 1.17 | | | | 1.25 | | | | (.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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 8.95 | | | | .13 | | | | .52 | | | | .65 | | | | (.11 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.00 | | | | .17 | | | | (.10 | ) | | | .07 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.78 | | | | .12 | | | | 1.20 | | | | 1.32 | | | | (.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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value,
End of Period | | | % Total
Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets,
Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(e)(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c)(e) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.10 | ) | | | 9.47 | | | | 7.28 | | | | 234,644 | | | | .71 | | | | .55 | | | | 1.26 | | | | 4 | |
| | (.12 | ) | | | 8.93 | | | | .46 | | | | 232,317 | | | | .74 | | | | .55 | | | | 1.52 | | | | 7 | |
| | (.09 | ) | | | 9.00 | | | | 16.70 | | | | 262,968 | | | | .72 | | | | .54 | | | | 1.23 | | | | 28 | |
| | (.63 | ) | | | 7.80 | | | | 15.35 | | | | 252,855 | | | | .71 | | | | .52 | | | | .64 | | | | 5 | |
| | (1.07 | ) | | | 7.46 | | | | (42.93 | ) | | | 238,694 | | | | .70 | | | | .27 | | | | 4.71 | | | | 9 | |
| | (.64 | ) | | | 14.27 | | | | 19.54 | | | | 391,792 | | | | .68 | | | | .25 | | | | 2.12 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.09 | ) | | | 8.68 | | | | 6.88 | | | | 340,760 | | | | 1.46 | | | | 1.30 | | | | .88 | | | | 4 | |
| | (.11 | ) | | | 8.21 | | | | (.34 | ) | | | 347,822 | | | | 1.49 | | | | 1.30 | | | | .76 | | | | 7 | |
| | (.08 | ) | | | 8.34 | | | | 15.95 | | | | 391,560 | | | | 1.47 | | | | 1.29 | | | | .51 | | | | 28 | |
| | (.62 | ) | | | 7.27 | | | | 14.58 | | | | 386,145 | | | | 1.46 | | | | 1.27 | | | | (.12 | ) | | | 5 | |
| | (1.01 | ) | | | 7.03 | | | | (43.44 | ) | | | 372,623 | | | | 1.45 | | | | 1.02 | | | | 3.55 | | | | 9 | |
| | (.60 | ) | | | 13.54 | | | | 18.51 | | | | 654,858 | | | | 1.43 | | | | 1.00 | | | | 1.39 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.10 | ) | | | 9.27 | | | | 7.20 | | | | 59,862 | | | | .71 | | | | .55 | | | | 1.21 | | | | 4 | |
| | (.12 | ) | | | 8.75 | | | | .59 | | | | 56,276 | | | | .73 | | | | .55 | | | | 2.12 | | | | 7 | |
| | (.10 | ) | | | 8.81 | | | | 16.66 | | | | 171,027 | | | | .72 | | | | .54 | | | | 1.23 | | | | 28 | |
| | (.63 | ) | | | 7.64 | | | | 15.38 | | | | 178,858 | | | | .71 | | | | .52 | | | | .64 | | | | 5 | |
| | (1.07 | ) | | | 7.32 | | | | (42.95 | ) | | | 172,463 | | | | .70 | | | | .27 | | | | 4.63 | | | | 9 | |
| | (.64 | ) | | | 14.02 | | | | 19.44 | | | | 317,412 | | | | .68 | | | | .25 | | | | 2.45 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.12 | ) | | | 9.50 | | | | 7.57 | | | | 64,107 | | | | .46 | | | | .13 | | | | 1.45 | | | | 4 | |
| | (.12 | ) | | | 8.95 | | | | .87 | | | | 53,489 | | | | .49 | | | | .12 | | | | 1.76 | | | | 7 | |
| | (.10 | ) | | | 8.99 | | | | 17.00 | | | | 39,248 | | | | .47 | | | | .27 | | | | 1.39 | | | | 28 | |
| | (.64 | ) | | | 7.78 | | | | 15.71 | | | | 15,197 | | | | .46 | | | | .27 | | | | .79 | | | | 5 | |
| | (1.10 | ) | | | 7.43 | | | | (42.83 | ) | | | 6,152 | | | | .45 | | | | .02 | | | | 5.00 | | | | 9 | |
| | (.65 | ) | | | 14.23 | | | | 19.74 | | | | 10,544 | | | | .43 | | | | — | | | | 1.18 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.11 | ) | | | 9.29 | | | | 7.27 | | | | 95,329 | | | | .71 | | | | .38 | | | | 1.38 | | | | 4 | |
| | (.12 | ) | | | 8.77 | | | | .75 | | | | 85,039 | | | | .75 | | | | .37 | | | | .96 | | | | 7 | |
| | (.10 | ) | | | 8.82 | | | | 16.79 | | | | 23,017 | | | | .72 | | | | .52 | | | | 1.20 | | | | 28 | |
| | (.63 | ) | | | 7.64 | | | | 15.37 | | | | 23,023 | | | | .71 | | | | .52 | | | | .65 | | | | 5 | |
| | (1.07 | ) | | | 7.32 | | | | (42.99 | ) | | | 23,180 | | | | .71 | | | | .27 | | | | 3.56 | | | | 9 | |
| | (.62 | ) | | | 14.03 | | | | 19.40 | | | | 25,130 | | | | .68 | | | | .25 | | | | 2.42 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.10 | ) | | | 9.20 | | | | 7.23 | | | | 210,325 | | | | .96 | | | | .63 | | | | 1.25 | | | | 4 | |
| | (.12 | ) | | | 8.68 | | | | .37 | | | | 239,637 | | | | .99 | | | | .62 | | | | 1.47 | | | | 7 | |
| | (.09 | ) | | | 8.76 | | | | 16.54 | | | | 290,176 | | | | .97 | | | | .78 | | | | 1.03 | | | | 28 | |
| | (.63 | ) | | | 7.60 | | | | 15.02 | | | | 296,569 | | | | .96 | | | | .77 | | | | .39 | | | | 5 | |
| | (1.05 | ) | | | 7.30 | | | | (43.12 | ) | | | 287,938 | | | | .95 | | | | .52 | | | | 4.46 | | | | 9 | |
| | (.62 | ) | | | 13.98 | | | | 19.16 | | | | 553,383 | | | | .93 | | | | .50 | | | | 2.12 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.11 | ) | | | 9.49 | | | | 7.38 | | | | 188,262 | | | | .46 | | | | .30 | | | | 1.39 | | | | 4 | |
| | (.12 | ) | | | 8.95 | | | | .74 | | | | 179,547 | | | | .49 | | | | .30 | | | | 1.81 | | | | 7 | |
| | (.10 | ) | | | 9.00 | | | | 17.13 | | | | 189,067 | | | | .47 | | | | .29 | | | | 1.48 | | | | 28 | |
| | (.64 | ) | | | 7.78 | | | | 15.69 | | | | 193,608 | | | | .46 | | | | .27 | | | | .93 | | | | 5 | |
| | (1.10 | ) | | | 7.43 | | | | (42.87 | ) | | | 221,509 | | | | .45 | | | | .02 | | | | 4.65 | | | | 9 | |
| | (.65 | ) | | | 14.23 | | | | 19.74 | | | | 319,798 | | | | .43 | | | | — | | | | 2.63 | | | | 18 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2015 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including distribution (12b-1) and/or service fee 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,054.45 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the Class |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before
expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,052.41 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.28 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before
expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,050.88 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.55 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2015 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 16.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 125,963 | | | | 3,796 | |
Russell U.S. Quantitative Equity Fund | | | 115,936 | | | | 3,860 | |
Russell U.S. Small Cap Equity Fund | | | 62,715 | | | | 1,547 | |
| | | | | | | | |
| | | | | | | 9,203 | |
| | | | | | | | |
| | |
| Fixed Income - 62.0% | | | | | | | | |
Russell Investment Grade Bond Fund | | | 512,521 | | | | 11,537 | |
Russell Short Duration Bond Fund | | | 59,331 | | | | 1,153 | |
Russell Strategic Bond Fund | | | 2,088,103 | | | | 23,074 | |
| | | | | | | | |
| | | | | | | 35,764 | |
| | | | | | | | |
| | |
| International Equities - 16.2% | | | | | | | | |
Russell Emerging Markets Fund | | | 56,838 | | | | 1,039 | |
Russell Global Equity Fund | | | 384,692 | | | | 3,397 | |
Russell International Developed Markets Fund | | | 167,648 | | | | 4,897 | |
| | | | | | | | |
| | | | | | | 9,333 | |
| | | | | | | | |
| | |
| Real Assets - 5.8% | | | | | | | | |
Russell Commodity Strategies Fund | | | 175,918 | | | | 1,675 | |
Russell Global Real Estate Securities Fund | | | 44,933 | | | | 1,673 | |
| | | | | | | | |
| | | | | | | 3,348 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $51,611) | | | | | | | 57,648 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | | | | (19 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 57,629 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net Assets | |
| | | | |
Domestic Equities | | | 16.0 | |
Fixed Income | | | 62.0 | |
International Equities | | | 16.2 | |
Real Assets | | | 5.8 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2015 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 51,611 | |
Investments, at market | | | 57,648 | |
Receivables: | | | | |
Investments sold | | | 111 | |
Fund shares sold | | | 60 | |
Prepaid expenses | | | 6 | |
| | | | |
Total assets | | | 57,825 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 171 | |
Accrued fees to affiliates | | | 6 | |
Other accrued expenses | | | 19 | |
| | | | |
Total liabilities | | | 196 | |
| | | | |
| | | | |
Net Assets | | $ | 57,629 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (7 | ) |
Accumulated net realized gain (loss) | | | (125 | ) |
Unrealized appreciation (depreciation) on investments | | | 6,037 | |
Shares of beneficial interest | | | 56 | |
Additional paid-in capital | | | 51,668 | |
| | | | |
Net Assets | | $ | 57,629 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class R1(a) | | $ | 10.23 | |
Class R1 — Net assets | | $ | 39,466,147 | |
Class R1 — Shares outstanding ($.01 par value) | | | 3,859,201 | |
Net asset value per share: Class R2(a) | | $ | 10.21 | |
Class R2 — Net assets | | $ | 6,516,987 | |
Class R2 — Shares outstanding ($.01 par value) | | | 638,094 | |
Net asset value per share: Class R3(a) | | $ | 10.21 | |
Class R3 — Net assets | | $ | 11,646,113 | |
Class R3 — Shares outstanding ($.01 par value) | | | 1,140,665 | |
| (a) | 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.
| | | | |
| | 46 | | | Statement of Assets and Liabilities |
Russell Investment Company
2015 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 1,127 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class R3 | | | 18 | |
Shareholder servicing fees - Class R2 | | | 9 | |
Shareholder servicing fees - Class R3 | | | 18 | |
| | | | |
Expenses | | | 45 | |
| | | | |
Net investment income (loss) | | | 1,082 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 122 | |
Capital gain distributions from Underlying Funds | | | 91 | |
| | | | |
Net realized gain (loss) | | | 213 | |
Net change in unrealized appreciation (depreciation) on investments | | | 1,739 | |
| | | | |
Net realized and unrealized gain (loss) | | | 1,952 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 3,034 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 47 |
Russell Investment Company
2015 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Period Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 1,082 | | | $ | 1,883 | |
Net realized gain (loss) | | | 213 | | | | 12 | |
Net change in unrealized appreciation (depreciation) | | | 1,739 | | | | (425 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 3,034 | | | | 1,470 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class R1 | | | (713 | ) | | | (1,149 | ) |
Class R2 | | | (129 | ) | | | (284 | ) |
Class R3 | | | (247 | ) | | | (451 | ) |
From net realized gain | | | | | | | | |
Class R1 | | | (88 | ) | | | (79 | ) |
Class R2 | | | (17 | ) | | | (23 | ) |
Class R3 | | | (37 | ) | | | (35 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (1,231 | ) | | | (2,021 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (1,628 | ) | | | 16,643 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 175 | | | | 16,092 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 57,454 | | | | 41,362 | |
| | | | | | | | |
End of period | | $ | 57,629 | | | $ | 57,454 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (7 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 48 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
2015 Strategy Fund
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 | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.92 | | | | .19 | | | | .34 | | | | .53 | | | | (.20 | ) | | | (.02 | ) | | | — | |
October 31, 2011 | | | 10.05 | | | | .38 | | | | (.06 | ) | | | .32 | | | | (.42 | ) | | | (.03 | ) | | | — | |
October 31, 2010 | | | 8.96 | | | | .24 | | | | 1.13 | | | | 1.37 | | | | (.28 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.80 | | | | .24 | | | | 1.16 | | | | 1.40 | | | | (.24 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .18 | | | | (2.20 | ) | | | (2.02 | ) | | | (.16 | ) | | | — | | | | (.02 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.91 | | | | .19 | | | | .32 | | | | .51 | | | | (.19 | ) | | | (.02 | ) | | | — | |
October 31, 2011 | | | 10.04 | | | | .38 | | | | (.08 | ) | | | .30 | | | | (.40 | ) | | | (.03 | ) | | | — | |
October 31, 2010 | | | 8.96 | | | | .25 | | | | 1.09 | | | | 1.34 | | | | (.26 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.80 | | | | .24 | | | | 1.14 | | | | 1.38 | | | | (.22 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .16 | | | | (2.19 | ) | | | (2.03 | ) | | | (.15 | ) | | | — | | | | (.02 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.91 | | | | .17 | | | | .32 | | | | .49 | | | | (.17 | ) | | | (.02 | ) | | | — | |
October 31, 2011 | | | 10.04 | | | | .33 | | | | (.06 | ) | | | .27 | | | | (.37 | ) | | | (.03 | ) | | | — | |
October 31, 2010 | | | 8.95 | | | | .23 | | | | 1.10 | | | | 1.33 | | | | (.24 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.80 | | | | .22 | | | | 1.14 | | | | 1.36 | | | | (.21 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 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) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets,
Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.22 | ) | | | 10.23 | | | | 5.45 | | | | 39,466 | | | | — | | | | — | | | | 1.91 | | | | 17 | |
| | (.45 | ) | | | 9.92 | | | | 3.29 | | | | 35,040 | | | | — | | | | — | | | | 3.83 | | | | 26 | |
| | (.28 | ) | | | 10.05 | | | | 15.60 | | | | 23,319 | | | | .70 | | | | — | | | | 2.56 | | | | 44 | |
| | (.24 | ) | | | 8.96 | | | | 18.57 | | | | 4,382 | | | | 1.86 | | | | — | | | | 2.80 | | | | 14 | |
| | (.18 | ) | | | 7.80 | | | | (20.60 | ) | | | 153 | | | | 13.08 | | | | — | | | | 1.85 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.21 | ) | | | 10.21 | | | | 5.24 | | | | 6,517 | | | | .25 | | | | .25 | | | | 1.89 | | | | 17 | |
| | (.43 | ) | | | 9.91 | | | | 3.02 | | | | 7,321 | | | | .25 | | | | .25 | | | | 3.81 | | | | 26 | |
| | (.26 | ) | | | 10.04 | | | | 15.23 | | | | 7,207 | | | | 1.00 | | | | .25 | | | | 2.63 | | | | 44 | |
| | (.22 | ) | | | 8.96 | | | | 18.31 | | | | 2,003 | | | | 2.52 | | | | .25 | | | | 2.92 | | | | 14 | |
| | (.17 | ) | | | 7.80 | | | | (20.68 | ) | | | 274 | | | | 10.64 | | | | .25 | | | | 1.75 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.21 | | | | 5.09 | | | | 11,646 | | | | .50 | | | | .50 | | | | 1.70 | | | | 17 | |
| | (.40 | ) | | | 9.91 | | | | 2.78 | | | | 15,093 | | | | .50 | | | | .50 | | | | 3.26 | | | | 26 | |
| | (.24 | ) | | | 10.04 | | | | 15.08 | | | | 10,836 | | | | 1.26 | | | | .50 | | | | 2.40 | | | | 44 | |
| | (.21 | ) | | | 8.95 | | | | 17.97 | | | | 6,460 | | | | 2.56 | | | | .50 | | | | 2.72 | | | | 14 | |
| | (.15 | ) | | | 7.80 | | | | (20.81 | ) | | | 300 | | | | 10.45 | | | | .50 | | | | 1.56 | | | | 13 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2020 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,057.51 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.28 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,057.56 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.28 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2020 Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,058.71 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the Class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,057.69 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.28 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,056.57 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.56 | | | $ | 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 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher. |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,058.71 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the Class. |
Russell Investment Company
2020 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 21.4% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 747,886 | | | | 22,541 | |
Russell U.S. Quantitative Equity Fund | | | 677,119 | | | | 22,541 | |
Russell U.S. Small Cap Equity Fund | | | 345,180 | | | | 8,516 | |
| | | | | | | | |
| | | | | | | 53,598 | |
| | | | | | | | |
| | |
| Fixed Income - 52.0% | | | | | | | | |
Russell Investment Grade Bond Fund | | | 1,335,186 | | | | 30,055 | |
Russell Strategic Bond Fund | | | 9,066,379 | | | | 100,184 | |
| | | | | | | | |
| | | | | | | 130,239 | |
| | | | | | | | |
| | |
| International Equities - 20.2% | | | | | | | | |
Russell Emerging Markets Fund | | | 328,830 | | | | 6,011 | |
Russell Global Equity Fund | | | 1,928,787 | | | | 17,031 | |
Russell International Developed Markets Fund | | | 943,186 | | | | 27,551 | |
| | | | | | | | |
| | | | | | | 50,593 | |
| | | | | | | | |
| | |
| Real Assets - 6.4% | | | | | | | | |
Russell Commodity Strategies Fund | | | 894,495 | | | | 8,515 | |
Russell Global Real Estate Securities Fund | | | 201,766 | | | | 7,514 | |
| | | | | | | | |
| | | | | | | 16,029 | |
| | | | | | | | |
| | |
Total Investments - 100.0% (identified cost $214,385) | | | | | | | 250,459 | |
| | |
Other Assets and Liabilities, Net - (0.0%) | | | | | | | (59 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 250,400 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
Domestic Equities | | | 21.4 | |
Fixed Income | | | 52.0 | |
International Equities | | | 20.2 | |
Real Assets | | | 6.4 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2020 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 214,385 | |
Investments, at market | | | 250,459 | |
Receivables: | | | | |
Investments sold | | | 8,268 | |
Fund shares sold | | | 404 | |
From affiliates | | | 1 | |
Prepaid expenses | | | 1 | |
| | | | |
Total assets | | | 259,133 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 8,668 | |
Accrued fees to affiliates | | | 40 | |
Other accrued expenses | | | 25 | |
| | | | |
Total liabilities | | | 8,733 | |
| | | | |
| | | | |
Net Assets | | $ | 250,400 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (43 | ) |
Accumulated net realized gain (loss) | | | (11,251 | ) |
Unrealized appreciation (depreciation) on investments | | | 36,074 | |
Shares of beneficial interest | | | 228 | |
Additional paid-in capital | | | 225,392 | |
| | | | |
Net Assets | | $ | 250,400 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.96 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.63 | |
Class A — Net assets | | $ | 989,810 | |
Class A — Shares outstanding ($.01 par value) | | | 90,303 | |
Net asset value per share: Class E(a) | | $ | 10.98 | |
Class E — Net assets | | $ | 2,389,469 | |
Class E — Shares outstanding ($.01 par value) | | | 217,611 | |
Net asset value per share: Class R1(a) | | $ | 10.97 | |
Class R1 — Net assets | | $ | 121,405,732 | |
Class R1 — Shares outstanding ($.01 par value) | | | 11,064,782 | |
Net asset value per share: Class R2(a) | | $ | 10.96 | |
Class R2 — Net assets | | $ | 30,260,400 | |
Class R2 — Shares outstanding ($.01 par value) | | | 2,762,244 | |
Net asset value per share: Class R3(a) | | $ | 10.93 | |
Class R3 — Net assets | | $ | 72,122,698 | |
Class R3 — Shares outstanding ($.01 par value) | | | 6,596,266 | |
Net asset value per share: Class S(a) | | $ | 10.97 | |
Class S — Net assets | | $ | 23,231,936 | |
Class S — Shares outstanding ($.01 par value) | | | 2,117,542 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 55 |
Russell Investment Company
2020 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 4,792 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class A | | | 2 | |
Distribution fees - Class R3 | | | 104 | |
Shareholder servicing fees - Class E | | | 3 | |
Shareholder servicing fees - Class R2 | | | 44 | |
Shareholder servicing fees - Class R3 | | | 104 | |
| | | | |
Expenses | | | 257 | |
| | | | |
Net investment income (loss) | | | 4,535 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (2,003 | ) |
Capital gain distributions from Underlying Funds | | | 355 | |
| | | | |
Net realized gain (loss) | | | (1,648 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 11,532 | |
| | | | |
Net realized and unrealized gain (loss) | | | 9,884 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 14,419 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 56 | | | Statement of Operations |
Russell Investment Company
2020 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 4,535 | | | $ | 9,723 | |
Net realized gain (loss) | | | (1,648 | ) | | | (500 | ) |
Net change in unrealized appreciation (depreciation) | | | 11,532 | | | | (1,246 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 14,419 | | | | 7,977 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (30 | ) | | | (84 | ) |
Class E | | | (40 | ) | | | (444 | ) |
Class R1 | | | (2,125 | ) | | | (3,770 | ) |
Class R2 | | | (623 | ) | | | (1,756 | ) |
Class R3 | | | (1,352 | ) | | | (3,035 | ) |
Class S | | | (408 | ) | | | (635 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (4,578 | ) | | | (9,724 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (30,247 | ) | | | 19,865 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (20,406 | ) | | | 18,118 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 270,806 | | | | 252,688 | |
| | | | | | | | |
End of period | | $ | 250,400 | | | $ | 270,806 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (43 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 57 |
Russell Investment Company
2020 Strategy Fund
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 | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.55 | | | | .22 | | | | .38 | | | | .60 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2011 | | | 10.63 | | | | .42 | | | | (.11 | ) | | | .31 | | | | (.39 | ) | | | — | | | | — | |
October 31, 2010 | | | 9.42 | | | | .25 | | | | 1.23 | | | | 1.48 | | | | (.27 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.57 | | | | .18 | | | | .42 | | | | .60 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2011 | | | 10.63 | | | | .88 | | | | (.56 | ) | | | .32 | | | | (.38 | ) | | | — | | | | — | |
October 31, 2010 | | | 9.42 | | | | .26 | | | | 1.22 | | | | 1.48 | | | | (.27 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.56 | | | | .20 | | | | .41 | | | | .61 | | | | (.20 | ) | | | — | | | | — | |
October 31, 2011 | | | 10.64 | | | | .40 | | | | (.07 | ) | | | .33 | | | | (.41 | ) | | | — | | | | — | |
October 31, 2010 | | | 9.43 | | | | .28 | | | | 1.22 | | | | 1.50 | | | | (.29 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.54 | | | | .19 | | | | .42 | | | | .61 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2011 | | | 10.62 | | | | .36 | | | | (.06 | ) | | | .30 | | | | (.38 | ) | | | — | | | | — | |
October 31, 2010 | | | 9.41 | | | | .26 | | | | 1.22 | | | | 1.48 | | | | (.27 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.52 | | | | .17 | | | | .41 | | | | .58 | | | | (.17 | ) | | | — | | | | — | |
October 31, 2011 | | | 10.61 | | | | .35 | | | | (.08 | ) | | | .27 | | | | (.36 | ) | | | — | | | | — | |
October 31, 2010 | | | 9.40 | | | | .24 | | | | 1.21 | | | | 1.45 | | | | (.24 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.56 | | | | .20 | | | | .41 | | | | .61 | | | | (.20 | ) | | | — | | | | — | |
October 31, 2011 | | | 10.64 | | | | .39 | | | | (.06 | ) | | | .33 | | | | (.41 | ) | | | — | | | | — | |
October 31, 2010 | | | 9.42 | | | | .30 | | | | 1.21 | | | | 1.51 | | | | (.29 | ) | | | — | | | | — | |
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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value,
End of Period | | | % Total Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses to Average Net Assets, Gross(f)(g) | | | % Ratio of Expenses to Average
Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average
Net Assets(b)(c) | | | % Portfolio Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.96 | | | | 5.75 | | | | 990 | | | | .25 | | | | .25 | | | | 2.09 | | | | 10 | |
| | (.39 | ) | | | 10.55 | | | | 2.89 | | | | 1,913 | | | | .25 | | | | .25 | | | | 3.85 | | | | 24 | |
| | (.27 | ) | | | 10.63 | | | | 15.93 | | | | 2,542 | | | | .70 | | | | .25 | | | | 2.46 | | | | 32 | |
| | (.23 | ) | | | 9.42 | | | | 18.10 | | | | 1,484 | | | | .82 | | | | .25 | | | | 2.91 | | | | 15 | |
| | (.65 | ) | | | 8.20 | | | | (29.99 | ) | | | 1,391 | | | | .74 | | | | .25 | | | | 4.63 | | | | 103 | |
| | (.35 | ) | | | 12.42 | | | | 13.83 | | | | 2,016 | | | | .86 | | | | .25 | | | | 2.93 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.98 | | | | 5.76 | | | | 2,389 | | | | .25 | | | | .25 | | | | 1.72 | | | | 10 | |
| | (.38 | ) | | | 10.57 | | | | 3.07 | | | | 2,455 | | | | .25 | | | | .25 | | | | 8.23 | | | | 24 | |
| | (.27 | ) | | | 10.63 | | | | 15.91 | | | | 15,771 | | | | .71 | | | | .25 | | | | 2.62 | | | | 32 | |
| | (.23 | ) | | | 9.42 | | | | 18.26 | | | | 11,769 | | | | .82 | | | | .25 | | | | 2.83 | | | | 15 | |
| | (.65 | ) | | | 8.19 | | | | (30.07 | ) | | | 7,207 | | | | .74 | | | | .25 | | | | 4.46 | | | | 103 | |
| | (.35 | ) | | | 12.42 | | | | 13.79 | | | | 9,498 | | | | .86 | | | | .25 | | | | 2.44 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 10.97 | | | | 5.87 | | | | 121,406 | | | | — | | | | — | | | | 1.83 | | | | 10 | |
| | (.41 | ) | | | 10.56 | | | | 3.17 | | | | 111,545 | | | | — | | | | — | | | | 3.63 | | | | 24 | |
| | (.29 | ) | | | 10.64 | | | | 16.31 | | | | 84,152 | | | | .45 | | | | — | | | | 2.84 | | | | 32 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 10.96 | | | | 5.77 | | | | 30,260 | | | | .25 | | | | .25 | | | | 1.74 | | | | 10 | |
| | (.38 | ) | | | 10.54 | | | | 2.88 | | | | 44,217 | | | | .25 | | | | .25 | | | | 3.25 | | | | 24 | |
| | (.27 | ) | | | 10.62 | | | | 15.94 | | | | 44,060 | | | | .71 | | | | .25 | | | | 2.59 | | | | 32 | |
| | (.23 | ) | | | 9.41 | | | | 18.26 | | | | 26,236 | | | | .82 | | | | .25 | | | | 2.94 | | | | 15 | |
| | (.66 | ) | | | 8.18 | | | | (30.07 | ) | | | 18,247 | | | | .74 | | | | .25 | | | | 2.58 | | | | 103 | |
| | (.35 | ) | | | 12.41 | | | | 13.81 | | | | 4,135 | | | | .86 | | | | .25 | | | | 2.20 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 10.93 | | | | 5.66 | | | | 72,123 | | | | .50 | | | | .50 | | | | 1.60 | | | | 10 | |
| | (.36 | ) | | | 10.52 | | | | 2.56 | | | | 91,714 | | | | .50 | | | | .50 | | | | 3.20 | | | | 24 | |
| | (.24 | ) | | | 10.61 | | | | 15.66 | | | | 90,563 | | | | .96 | | | | .50 | | | | 2.41 | | | | 32 | |
| | (.21 | ) | | | 9.40 | | | | 18.05 | | | | 74,142 | | | | 1.06 | | | | .50 | | | | 2.52 | | | | 15 | |
| | (.63 | ) | | | 8.17 | | | | (30.24 | ) | | | 35,919 | | | | .99 | | | | .50 | | | | 4.80 | | | | 103 | |
| | (.33 | ) | | | 12.39 | | | | 13.50 | | | | 44,038 | | | | 1.11 | | | | .50 | | | | 2.33 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 10.97 | | | | 5.87 | | | | 23,232 | | | | — | | | | — | | | | 1.86 | | | | 10 | |
| | (.41 | ) | | | 10.56 | | | | 3.17 | | | | 18,962 | | | | — | | | | — | | | | 3.60 | | | | 24 | |
| | (.29 | ) | | | 10.64 | | | | 16.30 | | | | 15,600 | | | | .47 | | | | — | | | | 2.96 | | | | 32 | |
| | (.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 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2025 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including distribution (12b-1) and/or service fee 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,064.57 | | | $ | 1,024.86 | |
Expenses Paid During Period | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,063.46 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1 .28 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,062.24 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.56 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2025 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 28.5% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 213,169 | | | | 6,425 | |
Russell U.S. Quantitative Equity Fund | | | 192,214 | | | | 6,399 | |
Russell U.S. Small Cap Equity Fund | | | 87,382 | | | | 2,156 | |
| | | | | | | | |
| | | | | | | 14,980 | |
| | | | | | | | |
| | |
| Fixed Income - 39.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 1,858,673 | | | | 20,538 | |
| | | | | | | | |
| | |
| International Equities - 25.4% | | | | | | | | |
Russell Emerging Markets Fund | | | 87,881 | | | | 1,606 | |
Russell Global Equity Fund | | | 483,090 | | | | 4,266 | |
Russell International Developed Markets Fund | | | 256,915 | | | | 7,504 | |
| | | | | | | | |
| | | | | | | 13,376 | |
| | | | | | | | |
| | |
| Real Assets - 7.1% | | | | | | | | |
Russell Commodity Strategies Fund | | | 226,871 | | | | 2,160 | |
Russell Global Real Estate Securities Fund | | | 43,145 | | | | 1,607 | |
| | | | | | | | |
| | | | | | | 3,767 | |
| | | | | | | | |
| | |
Total Investments - 100.0% (identified cost $45,623) | | | | | | | 52,661 | |
| | |
Other Assets and Liabilities, Net - (0.0%) | | | | | | | (26 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 52,635 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
Domestic Equities | | | 28.5 | |
Fixed Income | | | 39.0 | |
International Equities | | | 25.4 | |
Real Assets | | | 7.1 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2025 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 45,623 | |
Investments, at market | | | 52,661 | |
Receivables: | | | | |
Investments sold | | | 109 | |
Fund shares sold | | | 80 | |
Prepaid expenses | | | 6 | |
| | | | |
Total assets | | | 52,856 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 188 | |
Accrued fees to affiliates | | | 7 | |
Other accrued expenses | | | 26 | |
| | | | |
Total liabilities | | | 221 | |
| | | | |
| | | | |
Net Assets | | $ | 52,635 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (8 | ) |
Accumulated net realized gain (loss) | | | (261 | ) |
Unrealized appreciation (depreciation) on investments | | | 7,038 | |
Shares of beneficial interest | | | 54 | |
Additional paid-in capital | | | 45,812 | |
| | | | |
Net Assets | | $ | 52,635 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class R1(a) | | $ | 9.84 | |
Class R1 — Net assets | | $ | 31,222,585 | |
Class R1 — Shares outstanding ($.01 par value) | | | 3,171,706 | |
Net asset value per share: Class R2(a) | | $ | 9.84 | |
Class R2 — Net assets | | $ | 7,541,587 | |
Class R2 — Shares outstanding ($.01 par value) | | | 766,555 | |
Net asset value per share: Class R3(a) | | $ | 9.81 | |
Class R3 — Net assets | | $ | 13,870,763 | |
Class R3 — Shares outstanding ($.01 par value) | | | 1,414,017 | |
| (a) | 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.
| | | | |
| | 62 | | | Statement of Assets and Liabilities |
Russell Investment Company
2025 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 933 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class R3 | | | 20 | |
Shareholder servicing fees - Class R2 | | | 10 | |
Shareholder servicing fees - Class R3 | | | 20 | |
| | | | |
Expenses | | | 50 | |
| | | | |
Net investment income (loss) | | | 883 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (5 | ) |
Capital gain distributions from Underlying Funds | | | 68 | |
| | | | |
Net realized gain (loss) | | | 63 | |
Net change in unrealized appreciation (depreciation) on investments | | | 2,422 | |
| | | | |
Net realized and unrealized gain (loss) | | | 2,485 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 3,368 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 63 |
Russell Investment Company
2025 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 883 | | | $ | 1,431 | |
Net realized gain (loss) | | | 63 | | | | 109 | |
Net change in unrealized appreciation (depreciation) | | | 2,422 | | | | (368 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 3,368 | | | | 1,172 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class R1 | | | (516 | ) | | | (790 | ) |
Class R2 | | | (129 | ) | | | (268 | ) |
Class R3 | | | (246 | ) | | | (374 | ) |
From net realized gain | | | | | | | | |
Class R1 | | | (85 | ) | | | (1 | ) |
Class R2 | | | (23 | ) | | | (1 | ) |
Class R3 | | | (49 | ) | | | (1 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (1,048 | ) | | | (1,435 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (2,165 | ) | | | 13,367 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 155 | | | | 13,104 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 52,480 | | | | 39,376 | |
| | | | | | | | |
End of period | | $ | 52,635 | | | $ | 52,480 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (8 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 64 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
2025 Strategy Fund
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 | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.44 | | | | .17 | | | | .43 | | | | .60 | | | | (.17 | ) | | | (.03 | ) | | | — | |
October 31, 2011 | | | 9.49 | | | | .30 | | | | (.02 | ) | | | .28 | | | | (.33 | ) | | | — | (i) | | | — | |
October 31, 2010 | | | 8.31 | | | | .20 | | | | 1.20 | | | | 1.40 | | | | (.22 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.21 | | | | .15 | | | | 1.09 | | | | 1.24 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .10 | | | | (2.77 | ) | | | (2.67 | ) | | | (.10 | ) | | | — | | | | (.02 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.44 | | | | .16 | | | | .43 | | | | .59 | | | | (.16 | ) | | | (.03 | ) | | | — | |
October 31, 2011 | | | 9.48 | | | | .30 | | | | (.04 | ) | | | .26 | | | | (.30 | ) | | | — | (i) | | | — | |
October 31, 2010 | | | 8.30 | | | | .20 | | | | 1.18 | | | | 1.38 | | | | (.20 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.20 | | | | .13 | | | | 1.09 | | | | 1.22 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .12 | | | | (2.82 | ) | | | (2.70 | ) | | | (.08 | ) | | | — | | | | (.02 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.41 | | | | .14 | | | | .43 | | | | .57 | | | | (.14 | ) | | | (.03 | ) | | | — | |
October 31, 2011 | | | 9.46 | | | | .25 | | | | (.02 | ) | | | .23 | | | | (.28 | ) | | | — | (i) | | | — | |
October 31, 2010 | | | 8.29 | | | | .17 | | | | 1.18 | | | | 1.35 | | | | (.18 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.20 | | | | .12 | | | | 1.08 | | | | 1.20 | | | | (.11 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 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) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets, Gross(f)(g) | | | %
Ratio of Expenses
to Average Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average
Net Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.20 | ) | | | 9.84 | | | | 6.46 | | | | 31,223 | | | | — | | | | — | | | | 1.74 | | | | 16 | |
| | (.33 | ) | | | 9.44 | | | | 2.91 | | | | 28,255 | | | | — | | | | — | | | | 3.07 | | | | 27 | |
| | (.22 | ) | | | 9.49 | | | | 17.14 | | | | 19,470 | | | | .72 | | | | — | | | | 2.30 | | | | 26 | |
| | (.14 | ) | | | 8.31 | | | | 17.67 | | | | 3,863 | | | | 2.12 | | | | — | | | | 1.93 | | | | 12 | |
| | (.12 | ) | | | 7.21 | | | | (27.03 | ) | | | 226 | | | | 6.19 | | | | — | | | | 1.04 | | | | 113 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.19 | ) | | | 9.84 | | | | 6.35 | | | | 7,541 | | | | .25 | | | | .25 | | | | 1.67 | | | | 16 | |
| | (.30 | ) | | | 9.44 | | | | 2.74 | | | | 8,188 | | | | .25 | | | | .25 | | | | 3.05 | | | | 27 | |
| | (.20 | ) | | | 9.48 | | | | 16.89 | | | | 8,541 | | | | 1.01 | | | | .25 | | | | 2.27 | | | | 26 | |
| | (.12 | ) | | | 8.30 | | | | 17.47 | | | | 3,020 | | | | 2.58 | | | | .25 | | | | 1.80 | | | | 12 | |
| | (.10 | ) | | | 7.20 | | | | (27.25 | ) | | | 73 | | | | 8.56 | | | | .25 | | | | 1.31 | | | | 113 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 9.81 | | | | 6.22 | | | | 13,871 | | | | .50 | | | | .50 | | | | 1.50 | | | | 16 | |
| | (.28 | ) | | | 9.41 | | | | 2.42 | | | | 16,037 | | | | .50 | | | | .50 | | | | 2.57 | | | | 27 | |
| | (.18 | ) | | | 9.46 | | | | 16.54 | | | | 11,365 | | | | 1.24 | | | | .50 | | | | 1.87 | | | | 26 | |
| | (.11 | ) | | | 8.29 | | | | 17.10 | | | | 5,117 | | | | 2.82 | | | | .50 | | | | 1.66 | | | | 12 | |
| | (.09 | ) | | | 7.20 | | | | (27.32 | ) | | | 325 | | | | 7.71 | | | | .50 | | | | .99 | | | | 113 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2030 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,068.16 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,068.70 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2030 Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,069.62 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,068.61 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,067.40 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.57 | | | $ | 2.51 | |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.50% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,069.62 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
Russell Investment Company
2030 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 36.1% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 1,003,127 | | | | 30,234 | |
Russell U.S. Quantitative Equity Fund | | | 855,811 | | | | 28,490 | |
Russell U.S. Small Cap Equity Fund | | | 455,652 | | | | 11,241 | |
| | | | | | | | |
| | | | | | | 69,965 | |
| | | | | | | | |
| | |
| Fixed Income - 22.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 3,858,645 | | | | 42,638 | |
| | | | | | | | |
| | |
| International Equities - 32.2% | | | | | | | | |
Russell Emerging Markets Fund | | | 413,488 | | | | 7,559 | |
Russell Global Equity Fund | | | 2,150,997 | | | | 18,993 | |
Russell International Developed Markets Fund | | | 1,227,481 | | | | 35,855 | |
| | | | | | | | |
| | | | | | | 62,407 | |
| | | | | | | | |
| | |
| Real Assets - 9.7% | | | | | | | | |
Russell Commodity Strategies Fund | | | 1,180,770 | | | | 11,241 | |
Russell Global Real Estate Securities Fund | | | 202,969 | | | | 7,558 | |
| | | | | | | | |
| | | | | | | 18,799 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $161,664) | | | | | | | 193,809 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | | | | (45 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 193,764 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 36.1 | |
Fixed Income | | | 22.0 | |
International Equities | | | 32.2 | |
Real Assets | | | 9.7 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2030 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 161,664 | |
Investments, at market | | | 193,809 | |
Receivables: | | | | |
Investments sold | | | 7,539 | |
Fund shares sold | | | 177 | |
From affiliates | | | 2 | |
Prepaid expenses | | | 10 | |
| | | | |
Total assets | | | 201,537 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 7,702 | |
Accrued fees to affiliates | | | 31 | |
Other accrued expenses | | | 40 | |
| | | | |
Total liabilities | | | 7,773 | |
| | | | |
| | | | |
Net Assets | | $ | 193,764 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (33 | ) |
Accumulated net realized gain (loss) | | | (14,202 | ) |
Unrealized appreciation (depreciation) on investments | | | 32,145 | |
Shares of beneficial interest | | | 187 | |
Additional paid-in capital | | | 175,667 | |
| | | | |
Net Assets | | $ | 193,764 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.44 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.08 | |
Class A — Net assets | | $ | 2,092,005 | |
Class A — Shares outstanding ($.01 par value) | | | 200,445 | |
Net asset value per share: Class E(a) | | $ | 10.36 | |
Class E — Net assets | | $ | 1,068,442 | |
Class E — Shares outstanding ($.01 par value) | | | 103,130 | |
Net asset value per share: Class R1(a) | | $ | 10.38 | |
Class R1 — Net assets | | $ | 87,342,745 | |
Class R1 — Shares outstanding ($.01 par value) | | | 8,412,126 | |
Net asset value per share: Class R2(a) | | $ | 10.36 | |
Class R2 — Net assets | | $ | 23,544,186 | |
Class R2 — Shares outstanding ($.01 par value) | | | 2,272,250 | |
Net asset value per share: Class R3(a) | | $ | 10.36 | |
Class R3 — Net assets | | $ | 54,703,821 | |
Class R3 — Shares outstanding ($.01 par value) | | | 5,279,731 | |
Net asset value per share: Class S(a) | | $ | 10.38 | |
Class S — Net assets | | $ | 25,012,319 | |
Class S — Shares outstanding ($.01 par value) | | | 2,409,297 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 71 |
Russell Investment Company
2030 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 3,065 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class A | | | 2 | |
Distribution fees - Class R3 | | | 79 | |
Shareholder servicing fees - Class E | | | 1 | |
Shareholder servicing fees - Class R2 | | | 37 | |
Shareholder servicing fees - Class R3 | | | 79 | |
| | | | |
Expenses | | | 198 | |
| | | | |
Net investment income (loss) | | | 2,867 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (3,791 | ) |
Capital gain distributions from Underlying Funds | | | 328 | |
| | | | |
Net realized gain (loss) | | | (3,463 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 13,304 | |
| | | | |
Net realized and unrealized gain (loss) | | | 9,841 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 12,708 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 72 | | | Statement of Operations |
Russell Investment Company
2030 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 2,867 | | | $ | 5,088 | |
Net realized gain (loss) | | | (3,463 | ) | | | (782 | ) |
Net change in unrealized appreciation (depreciation) | | | 13,304 | | | | 1,161 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 12,708 | | | | 5,467 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (27 | ) | | | (40 | ) |
Class E | | | (15 | ) | | | (294 | ) |
Class R1 | | | (1,243 | ) | | | (1,707 | ) |
Class R2 | | | (426 | ) | | | (955 | ) |
Class R3 | | | (834 | ) | | | (1,558 | ) |
Class S | | | (355 | ) | | | (535 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (2,900 | ) | | | (5,089 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (29,420 | ) | | | 12,509 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (19,612 | ) | | | 12,887 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 213,376 | | | | 200,489 | |
| | | | | | | | |
End of period | | $ | 193,764 | | | $ | 213,376 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (33 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 73 |
Russell Investment Company
2030 Strategy Fund
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 | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.92 | | | | .14 | | | | .52 | | | | .66 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.92 | | | | .23 | | | | .01 | | | | .24 | | | | (.24 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.60 | | | | .17 | | | | 1.32 | | | | 1.49 | | | | (.17 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.84 | | | | .14 | | | | .52 | | | | .66 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.87 | | | | .79 | | | | (.59 | ) | | | .20 | | | | (.23 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.56 | | | | .16 | | | | 1.32 | | | | 1.48 | | | | (.17 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.86 | | | | .15 | | | | .52 | | | | .67 | | | | (.15 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.87 | | | | .24 | | | | .02 | | | | .26 | | | | (.27 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.57 | | | | .19 | | | | 1.30 | | | | 1.49 | | | | (.19 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.84 | | | | .14 | | | | .52 | | | | .66 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.85 | | | | .21 | | | | .02 | | | | .23 | | | | (.24 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.55 | | | | .16 | | | | 1.31 | | | | 1.47 | | | | (.17 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.84 | | | | .13 | | | | .52 | | | | .65 | | | | (.13 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.85 | | | | .21 | | | | (.01 | ) | | | .20 | | | | (.21 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.55 | | | | .14 | | | | 1.31 | | | | 1.45 | | | | (.15 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.86 | | | | .15 | | | | .52 | | | | .67 | | | | (.15 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.87 | | | | .25 | | | | .01 | | | | .26 | | | | (.27 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.57 | | | | .18 | | | | 1.31 | | | | 1.49 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2009 | | | 7.46 | | | | .12 | | | | 1.09 | | | | 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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value, End of Period | | | % Total of
Return(c)(d) | | | $ Net Assets,
End Period
(000) | | | % Ratio of Expenses
to Average Net Assets,
Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average Net
Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.44 | | | | 6.82 | | | | 2,092 | | | | .25 | | | | .25 | | | | 1.35 | | | | 12 | |
| | (.24 | ) | | | 9.92 | | | | 2.39 | | | | 1,820 | | | | .25 | | | | .25 | | | | 2.21 | | | | 28 | |
| | (.17 | ) | | | 9.92 | | | | 17.51 | | | | 1,603 | | | | .74 | | | | .25 | | | | 1.93 | | | | 25 | |
| | (.09 | ) | | | 8.60 | | | | 16.92 | | | | 1,791 | | | | .86 | | | | .25 | | | | 1.43 | | | | 9 | |
| | (.69 | ) | | | 7.45 | | | | (40.22 | ) | | | 2,069 | | | | .77 | | | | .25 | | | | 4.66 | | | | 86 | |
| | (.38 | ) | | | 13.23 | | | | 18.51 | | | | 3,739 | | | | .98 | | | | .25 | | | | 2.51 | | | | 31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.36 | | | | 6.87 | | | | 1,069 | | | | .25 | | | | .25 | | | | 1.37 | | | | 12 | |
| | (.23 | ) | | | 9.84 | | | | 2.02 | | | | 975 | | | | .25 | | | | .25 | | | | 7.79 | | | | 28 | |
| | (.17 | ) | | | 9.87 | | | | 17.48 | | | | 14,733 | | | | .73 | | | | .25 | | | | 1.77 | | | | 25 | |
| | (.09 | ) | | | 8.56 | | | | 16.24 | | | | 10,639 | | | | .85 | | | | .25 | | | | 1.36 | | | | 9 | |
| | (.69 | ) | | | 7.46 | | | | (40.14 | ) | | | 7,847 | | | | .77 | | | | .25 | | | | 4.25 | | | | 86 | |
| | (.39 | ) | | | 13.23 | | | | 18.42 | | | | 10,490 | | | | .98 | | | | .25 | | | | 1.88 | | | | 31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.38 | | | | 6.96 | | | | 87,343 | | | | — | | | | — | | | | 1.51 | | | | 12 | |
| | (.27 | ) | | | 9.86 | | | | 2.55 | | | | 79,046 | | | | — | | | | — | | | | 2.39 | | | | 28 | |
| | (.19 | ) | | | 9.87 | | | | 17.63 | | | | 53,702 | | | | .48 | | | | — | | | | 1.98 | | | | 25 | |
| | (.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 | ) | | | 10.36 | | | | 6.86 | | | | 23,544 | | | | .25 | | | | .25 | | | | 1.41 | | | | 12 | |
| | (.24 | ) | | | 9.84 | | | | 2.27 | | | | 38,352 | | | | .25 | | | | .25 | | | | 2.03 | | | | 28 | |
| | (.17 | ) | | | 9.85 | | | | 17.39 | | | | 39,163 | | | | .73 | | | | .25 | | | | 2.05 | | | | 25 | |
| | (.09 | ) | | | 8.55 | | | | 16.26 | | | | 23,534 | | | | .85 | | | | .25 | | | | 1.41 | | | | 9 | |
| | (.69 | ) | | | 7.45 | | | | (40.15 | ) | | | 14,938 | | | | .77 | | | | .25 | | | | 1.56 | | | | 86 | |
| | (.39 | ) | | | 13.22 | | | | 18.46 | | | | 3,359 | | | | .98 | | | | .25 | | | | 1.26 | | | | 31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.13 | ) | | | 10.36 | | | | 6.74 | | | | 54,704 | | | | .50 | | | | .50 | | | | 1.29 | | | | 12 | |
| | (.21 | ) | | | 9.84 | | | | 2.03 | | | | 71,140 | | | | .50 | | | | .50 | | | | 2.09 | | | | 28 | |
| | (.15 | ) | | | 9.85 | | | | 17.09 | | | | 72,164 | | | | .98 | | | | .50 | | | | 1.72 | | | | 25 | |
| | (.08 | ) | | | 8.55 | �� | | | 16.03 | | | | 56,115 | | | | 1.10 | | | | .50 | | | | 1.03 | | | | 9 | |
| | (.66 | ) | | | 7.45 | | | | (40.33 | ) | | | 26,547 | | | | 1.02 | | | | .50 | | | | 4.49 | | | | 86 | |
| | (.36 | ) | | | 13.22 | | | | 18.08 | | | | 29,200 | | | | 1.23 | | | | .50 | | | | 1.39 | | | | 31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.38 | | | | 6.96 | | | | 25,012 | | | | — | | | | — | | | | 1.52 | | | | 12 | |
| | (.27 | ) | | | 9.86 | | | | 2.55 | | | | 22,043 | | | | — | | | | — | | | | 2.48 | | | | 28 | |
| | (.19 | ) | | | 9.87 | | | | 17.77 | | | | 19,124 | | | | .48 | | | | — | | | | 1.52 | | | | 25 | |
| | (.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 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2035 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including distribution (12b-1) and/or service fee 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,077.58 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.48 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.14 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.58 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2035 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.1% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 42.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 142,629 | | | | 4,299 | |
Russell U.S. Quantitative Equity Fund | | | 125,413 | | | | 4,175 | |
Russell U.S. Small Cap Equity Fund | | | 62,895 | | | | 1,552 | |
| | | | | | | | |
| | | | | | | 10,026 | |
| | | | | | | | |
| | |
| Fixed Income - 10.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 216,136 | | | | 2,388 | |
| | | | | | | | |
| | |
| International Equities - 37.1% | | | | | | | | |
Russell Emerging Markets Fund | | | 58,819 | | | | 1,075 | |
Russell Global Equity Fund | | | 311,021 | | | | 2,746 | |
Russell International Developed | | | | | | | | |
Markets Fund | | | 171,705 | | | | 5,016 | |
| | | | | | | | |
| | | | | | | 8,837 | |
| | | | | | | | |
| | |
| Real Assets - 11.0% | | | | | | | | |
Russell Commodity Strategies Fund | | | 150,640 | | | | 1,434 | |
Russell Global Real Estate Securities
Fund | | | 32,087 | | | | 1,195 | |
| | | | | | | | |
| | | | | | | 2,629 | |
| | | | | | | | |
| | |
Total Investments - 100.1%
(identified cost $19,956) | | | | | | | 23,880 | |
| | |
Other Assets and Liabilities,
Net - (0.1%) | | | | | | | (25 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 23,855 | |
| | | | | | | | |
See accompanying notes which are an integral part of the financial statements.
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 42.0 | |
Fixed Income | | | 10.0 | |
International Equities | | | 37.1 | |
Real Assets | | | 11.0 | |
| | | | |
Total Investments | | | 100.1 | |
Other Assets and Liabilities, Net | | | (0.1 | ) |
| | | | |
| |
| | | 100.0 | |
| | | | |
Russell Investment Company
2035 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 19,956 | |
Investments, at market | | | 23,880 | |
Receivables: | | | | |
Investments sold | | | 51 | |
Fund shares sold | | | 65 | |
Prepaid expenses | | | 5 | |
| | | | |
Total assets | | | 24,001 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 116 | |
Accrued fees to affiliates | | | 4 | |
Other accrued expenses | | | 26 | |
| | | | |
Total liabilities | | | 146 | |
| | | | |
| | | | |
Net Assets | | $ | 23,855 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (5 | ) |
Accumulated net realized gain (loss) | | | (21 | ) |
Unrealized appreciation (depreciation) on investments | | | 3,924 | |
Shares of beneficial interest | | | 25 | |
Additional paid-in capital | | | 19,932 | |
| | | | |
Net Assets | | $ | 23,855 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class R1(a) | | $ | 9.61 | |
Class R1 — Net assets | | $ | 10,149,497 | |
Class R1 — Shares outstanding ($.01 par value) | | | 1,056,651 | |
Net asset value per share: Class R2(a) | | $ | 9.59 | |
Class R2 — Net assets | | $ | 5,378,467 | |
Class R2 — Shares outstanding ($.01 par value) | | | 560,682 | |
Net asset value per share: Class R3(a) | | $ | 9.59 | |
Class R3 — Net assets | | $ | 8,327,158 | |
Class R3 — Shares outstanding ($.01 par value) | | | 868,733 | |
| (a) | 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.
| | | | |
| | 78 | | | Statement of Assets and Liabilities |
Russell Investment Company
2035 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 337 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class R3 | | | 12 | |
Shareholder servicing fees - Class R2 | | | 6 | |
Shareholder servicing fees - Class R3 | | | 12 | |
| | | | |
Expenses | | | 30 | |
| | | | |
Net investment income (loss) | | | 307 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 117 | |
Capital gain distributions from Underlying Funds | | | 43 | |
| | | | |
Net realized gain (loss) | | | 160 | |
Net change in unrealized appreciation (depreciation) on investments | | | 1,326 | |
| | | | |
Net realized and unrealized gain (loss) | | | 1,486 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 1,793 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 79 |
Russell Investment Company
2035 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 307 | | | $ | 458 | |
Net realized gain (loss) | | | 160 | | | | 260 | |
Net change in unrealized appreciation (depreciation) | | | 1,326 | | | | (150 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 1,793 | | | | 568 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class R1 | | | (138 | ) | | | (189 | ) |
Class R2 | | | (61 | ) | | | (127 | ) |
Class R3 | | | (113 | ) | | | (143 | ) |
From net realized gain | | | | | | | | |
Class R1 | | | (53 | ) | | | — | |
Class R2 | | | (25 | ) | | | — | |
Class R3 | | | (53 | ) | | | — | |
| | | | | | | | |
Net decrease in net assets from distributions | | | (443 | ) | | | (459 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (1,640 | ) | | | 4,035 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (290 | ) | | | 4,144 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 24,145 | | | | 20,001 | |
| | | | | | | | |
End of period | | $ | 23,855 | | | $ | 24,145 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (5 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 80 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
2035 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ Net 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 | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.10 | | | | .13 | | | | .56 | | | | .69 | | | | (.13 | ) | | | (.05 | ) | | | — | |
October 31, 2011 | | | 9.13 | | | | .20 | | | | — | (i) | | | .20 | | | | (.23 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.92 | | | | .16 | | | | 1.22 | | | | 1.38 | | | | (.17 | ) | | | — | | | | — | |
October 31, 2009 | | | 6.86 | | | | .11 | | | | 1.03 | | | | 1.14 | | | | (.08 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .07 | | | | (3.11 | ) | | | (3.04 | ) | | | (.07 | ) | | | — | | | | (.03 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.09 | | | | .12 | | | | .55 | | | | .67 | | | | (.12 | ) | | | (.05 | ) | | | — | |
October 31, 2011 | | | 9.12 | | | | .20 | | | | (.03 | ) | | | .17 | | | | (.20 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.92 | | | | .14 | | | | 1.21 | | | | 1.35 | | | | (.15 | ) | | | — | | | | — | |
October 31, 2009 | | | 6.87 | | | | .07 | | | | 1.05 | | | | 1.12 | | | | (.07 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .08 | | | | (3.13 | ) | | | (3.05 | ) | | | (.06 | ) | | | — | | | | (.02 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.08 | | | | .11 | | | | .56 | | | | .67 | | | | (.11 | ) | | | (.05 | ) | | | — | |
October 31, 2011 | | | 9.11 | | | | .15 | | | | — | (i) | | | .15 | | | | (.18 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.91 | | | | .10 | | | | 1.23 | | | | 1.33 | | | | (.13 | ) | | | — | | | | — | |
October 31, 2009 | | | 6.87 | | | | .06 | | | | 1.03 | | | | 1.09 | | | | (.05 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 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) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets, Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets, Net(f)(g) | | | % Ratio of Net
Investment Income to Average Net Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.18 | ) | | | 9.61 | | | | 7.76 | | | | 10,150 | | | | — | | | | — | | | | 1.41 | | | | 17 | |
| | (.23 | ) | | | 9.10 | | | | 2.10 | | | | 9,728 | | | | — | | | | — | | | | 2.13 | | | | 42 | |
| | (.17 | ) | | | 9.13 | | | | 17.61 | | | | 7,252 | | | | 1.03 | | | | — | | | | 1.87 | | | | 19 | |
| | (.08 | ) | | | 7.92 | | | | 17.01 | | | | 1,927 | | | | 3.59 | | | | — | | | | 1.49 | | | | 13 | |
| | (.10 | ) | | | 6.86 | | | | (30.73 | ) | | | 428 | | | | 6.44 | | | | — | | | | .70 | | | | 90 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.17 | ) | | | 9.59 | | | | 7.55 | | | | 5,378 | | | | .25 | | | | .25 | | | | 1.27 | | | | 17 | |
| | (.20 | ) | | | 9.09 | | | | 1.81 | | | | 4,944 | | | | .25 | | | | .25 | | | | 2.12 | | | | 42 | |
| | (.15 | ) | | | 9.12 | | | | 17.22 | | | | 6,021 | | | | 1.30 | | | | .25 | | | | 1.64 | | | | 19 | |
| | (.07 | ) | | | 7.92 | | | | 16.79 | | | | 1,738 | | | | 3.63 | | | | .25 | | | | 1.06 | | | | 13 | |
| | (.08 | ) | | | 6.87 | | | | (30.84 | ) | | | 73 | | | | 8.66 | | | | .25 | | | | .86 | | | | 90 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.16 | ) | | | 9.59 | | | | 7.51 | | | | 8,327 | | | | .50 | | | | .50 | | | | 1.14 | | | | 17 | |
| | (.18 | ) | | | 9.08 | | | | 1.60 | | | | 9,473 | | | | .50 | | | | .50 | | | | 1.64 | | | | 42 | |
| | (.13 | ) | | | 9.11 | | | | 16.98 | | | | 6,728 | | | | 1.54 | | | | .50 | | | | 1.22 | | | | 19 | |
| | (.05 | ) | | | 7.91 | | | | 16.43 | | | | 2,877 | | | | 3.83 | | | | .50 | | | | .86 | | | | 13 | |
| | (.07 | ) | | | 6.87 | | | | (30.93 | ) | | | 124 | | | | 8.56 | | | | .50 | | | | .69 | | | | 90 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2040 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,076.02 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class E | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,076.13 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2040 Strategy Fund
Shareholder Expense Example, continued — April 30, 2012 (Unaudited)
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,077.13 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.99 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,074.98 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.58 | | | $ | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class S | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,077.13 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
Russell Investment Company
2040 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 42.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 848,588 | | | | 25,576 | |
Russell U.S. Quantitative Equity Fund | | | 746,951 | | | | 24,866 | |
Russell U.S. Small Cap Equity Fund | | | 374,379 | | | | 9,236 | |
| | | | | | | | |
| | | | | | | 59,678 | |
| | | | | | | | |
| | |
| Fixed Income - 10.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 1,285,895 | | | | 14,209 | |
| | | | | | | | |
| | |
| International Equities - 37.0% | | | | | | | | |
Russell Emerging Markets Fund | | | 349,787 | | | | 6,394 | |
Russell Global Equity Fund | | | 1,850,568 | | | | 16,341 | |
Russell International Developed Markets Fund | | | 1,021,540 | | | | 29,839 | |
| | | | | | | | |
| | | | | | | 52,574 | |
| | | | | | | | |
| | |
| Real Assets - 11.0% | | | | | | | | |
Russell Commodity Strategies Fund | | | 895,534 | | | | 8,525 | |
Russell Global Real Estate Securities Fund | | | 190,778 | | | | 7,105 | |
| | | | | | | | |
| | | | | | | 15,630 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $114,551) | | | | | | | 142,091 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | | | | (32 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 142,059 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 42.0 | |
Fixed Income | | | 10.0 | |
International Equities | | | 37.0 | |
Real Assets | | | 11.0 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2040 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 114,551 | |
Investments, at market | | | 142,091 | |
Receivables: | | | | |
Investments sold | | | 4,905 | |
Fund shares sold | | | 239 | |
From affiliates | | | 1 | |
Prepaid expenses | | | 14 | |
| | | | |
Total assets | | | 147,250 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 5,134 | |
Accrued fees to affiliates | | | 22 | |
Other accrued expenses | | | 35 | |
| | | | |
Total liabilities | | | 5,191 | |
| | | | |
| | | | |
Net Assets | | $ | 142,059 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (23 | ) |
Accumulated net realized gain (loss) | | | (10,393 | ) |
Unrealized appreciation (depreciation) on investments | | | 27,540 | |
Shares of beneficial interest | | | 135 | |
Additional paid-in capital | | | 124,800 | |
| | | | |
Net Assets | | $ | 142,059 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.50 | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.14 | |
Class A — Net assets | | $ | 900,088 | |
Class A — Shares outstanding ($.01 par value) | | | 85,731 | |
Net asset value per share: Class E(a) | | $ | 10.50 | |
Class E — Net assets | | $ | 1,097,261 | |
Class E — Shares outstanding ($.01 par value) | | | 104,542 | |
Net asset value per share: Class R1(a) | | $ | 10.51 | |
Class R1 — Net assets | | $ | 58,938,344 | |
Class R1 — Shares outstanding ($.01 par value) | | | 5,606,451 | |
Net asset value per share: Class R2(a) | | $ | 10.50 | |
Class R2 — Net assets | | $ | 14,246,729 | |
Class R2 — Shares outstanding ($.01 par value) | | | 1,356,773 | |
Net asset value per share: Class R3(a) | | $ | 10.48 | |
Class R3 — Net assets | | $ | 41,671,115 | |
Class R3 — Shares outstanding ($.01 par value) | | | 3,977,823 | |
Net asset value per share: Class S(a) | | $ | 10.51 | |
Class S — Net assets | | $ | 25,205,276 | |
Class S — Shares outstanding ($.01 par value) | | | 2,397,520 | |
| (a) | 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.
| | |
| Statement of Assets and Liabilities | | 87 |
Russell Investment Company
2040 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 2,033 | |
| |
Expenses | | | | |
Distribution fees - Class A | | | 1 | |
Distribution fees - Class R3 | | | 58 | |
Shareholder servicing fees - Class E | | | 1 | |
Shareholder servicing fees - Class R2 | | | 24 | |
Shareholder servicing fees - Class R3 | | | 58 | |
| | | | |
Expenses | | | 142 | |
| | | | |
Net investment income (loss) | | | 1,891 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (2,996 | ) |
Capital gain distributions from Underlying Funds | | | 258 | |
| | | | |
Net realized gain (loss) | | | (2,738 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 10,943 | |
| | | | |
Net realized and unrealized gain (loss) | | | 8,205 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 10,096 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 88 | | | Statement of Operations |
Russell Investment Company
2040 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012
(Unaudited) | | | Fiscal Year Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 1,891 | | | $ | 3,591 | |
Net realized gain (loss) | | | (2,738 | ) | | | (893 | ) |
Net change in unrealized appreciation (depreciation) | | | 10,943 | | | | 1,198 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 10,096 | | | | 3,896 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (14 | ) | | | (22 | ) |
Class E | | | (13 | ) | | | (313 | ) |
Class R1 | | | (770 | ) | | | (1,055 | ) |
Class R2 | | | (251 | ) | | | (706 | ) |
Class R3 | | | (544 | ) | | | (1,044 | ) |
Class S | | | (322 | ) | | | (452 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (1,914 | ) | | | (3,592 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (30,313 | ) | | | 6,291 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (22,131 | ) | | | 6,595 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 164,190 | | | | 157,595 | |
| | | | | | | | |
End of period | | $ | 142,059 | | | $ | 164,190 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (23 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statements of Changes in Net Assets | | 89 |
Russell Investment Company
2040 Strategy Fund
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 | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.89 | | | | .14 | | | | .60 | | | | .74 | | | | (.13 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.92 | | | | .21 | | | | (.02 | ) | | | .19 | | | | (.22 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.61 | | | | .16 | | | | 1.31 | | | | 1.47 | | | | (.16 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class E | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.89 | | | | .12 | | | | .63 | | | | .75 | | | | (.13 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.92 | | | | .79 | | | | (.61 | ) | | | .18 | | | | (.21 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.62 | | | | .16 | | | | 1.31 | | | | 1.47 | | | | (.17 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.90 | | | | .14 | | | | .61 | | | | .75 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.93 | | | | .22 | | | | — | (i) | | | .22 | | | | (.25 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.62 | | | | .18 | | | | 1.32 | | | | 1.50 | | | | (.19 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.89 | | | | .13 | | | | .61 | | | | .74 | | | | (.13 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.91 | | | | .18 | | | | .02 | | | | .20 | | | | (.22 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.61 | | | | .15 | | | | 1.31 | | | | 1.46 | | | | (.16 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.87 | | | | .11 | | | | .62 | | | | .73 | | | | (.12 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.90 | | | | .19 | | | | (.03 | ) | | | .16 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.60 | | | | .14 | | | | 1.30 | | | | 1.44 | | | | (.14 | ) | | | — | | | | — | |
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 | ) | | | — | |
Class S | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.90 | | | | .14 | | | | .61 | | | | .75 | | | | (.14 | ) | | | — | | | | — | |
October 31, 2011 | | | 9.93 | | | | .22 | | | | — | (i) | | | .22 | | | | (.25 | ) | | | — | | | | — | |
October 31, 2010 | | | 8.62 | | | | .18 | | | | 1.32 | | | | 1.50 | | | | (.19 | ) | | | — | | | | — | |
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 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value,
End of Period | | | % Total
Return(c)(d) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets,
Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.13 | ) | | | 10.50 | | | | 7.60 | | | | 900 | | | | .25 | | | | .25 | | | | 1.36 | | | | 8 | |
| | (.22 | ) | | | 9.89 | | | | 1.86 | | | | 1,062 | | | | .25 | | | | .25 | | | | 2.03 | | | | 23 | |
| | (.16 | ) | | | 9.92 | | | | 17.29 | | | | 902 | | | | .76 | | | | .25 | | | | 1.79 | | | | 19 | |
| | (.09 | ) | | | 8.61 | | | | 16.44 | | | | 877 | | | | .91 | | | | .25 | | | | 1.41 | | | | 8 | |
| | (.69 | ) | | | 7.49 | | | | (40.84 | ) | | | 944 | | | | .84 | | | | .25 | | | | 5.46 | (h) | | | 96 | |
| | (.44 | ) | | | 13.44 | | | | 19.04 | | | | 2,363 | | | | 1.14 | | | | .25 | | | | 2.49 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.13 | ) | | | 10.50 | | | | 7.61 | | | | 1,097 | | | | .25 | | | | .25 | | | | 1.23 | | | | 8 | |
| | (.21 | ) | | | 9.89 | | | | 1.79 | | | | 939 | | | | .25 | | | | .25 | | | | 7.73 | | | | 23 | |
| | (.17 | ) | | | 9.92 | | | | 17.18 | | | | 16,638 | | | | .75 | | | | .25 | | | | 1.77 | | | | 19 | |
| | (.09 | ) | | | 8.62 | | | | 16.44 | | | | 7,070 | | | | .90 | | | | .25 | | | | 1.33 | | | | 8 | |
| | (.69 | ) | | | 7.50 | | | | (40.85 | ) | | | 4,523 | | | | .85 | | | | .25 | | | | 4.41 | (h) | | | 96 | |
| | (.44 | ) | | | 13.46 | | | | 19.12 | | | | 6,353 | | | | 1.14 | | | | .25 | | | | 1.96 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.51 | | | | 7.71 | | | | 58,939 | | | | — | | | | — | | | | 1.37 | | | | 8 | |
| | (.25 | ) | | | 9.90 | | | | 2.12 | | | | 52,962 | | | | — | | | | — | | | | 2.19 | | | | 23 | |
| | (.19 | ) | | | 9.93 | | | | 17.57 | | | | 36,998 | | | | .49 | | | | — | | | | 1.94 | | | | 19 | |
| | (.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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.13 | ) | | | 10.50 | | | | 7.60 | | | | 14,247 | | | | .25 | | | | .25 | | | | 1.34 | | | | 8 | |
| | (.22 | ) | | | 9.89 | | | | 1.94 | | | | 33,320 | | | | .25 | | | | .25 | | | | 1.70 | | | | 23 | |
| | (.16 | ) | | | 9.91 | | | | 17.19 | | | | 32,308 | | | | .75 | | | | .25 | | | | 1.67 | | | | 19 | |
| | (.09 | ) | | | 8.61 | | | | 16.46 | | | | 20,226 | | | | .90 | | | | .25 | | | | 1.39 | | | | 8 | |
| | (.70 | ) | | | 7.49 | | | | (40.91 | ) | | | 9,936 | | | | .85 | | | | .25 | | | | 1.40 | (h) | | | 96 | |
| | (.43 | ) | | | 13.46 | | | | 19.11 | | | | 2,061 | | | | 1.14 | | | | .25 | | | | 2.28 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.12 | ) | | | 10.48 | | | | 7.50 | | | | 41,671 | | | | .50 | | | | .50 | | | | 1.13 | | | | 8 | |
| | (.19 | ) | | | 9.87 | | | | 1.61 | | | | 54,269 | | | | .50 | | | | .50 | | | | 1.85 | | | | 23 | |
| | (.14 | ) | | | 9.90 | | | | 16.92 | | | | 53,208 | | | | 1.00 | | | | .50 | | | | 1.48 | | | | 19 | |
| | (.08 | ) | | | 8.60 | | | | 16.23 | | | | 42,544 | | | | 1.15 | | | | .50 | | | | 1.04 | | | | 8 | |
| | (.67 | ) | | | 7.48 | | | | (41.02 | ) | | | 22,913 | | | | 1.10 | | | | .50 | | | | 4.91 | (h) | | | 96 | |
| | (.42 | ) | | | 13.43 | | | | 18.75 | | | | 29,700 | | | | 1.39 | | | | .50 | | | | .96 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.51 | | | | 7.71 | | | | 25,205 | | | | — | | | | — | | | | 1.39 | | | | 8 | |
| | (.25 | ) | | | 9.90 | | | | 2.12 | | | | 21,638 | | | | — | | | | — | | | | 2.18 | | | | 23 | |
| | (.19 | ) | | | 9.93 | | | | 17.57 | | | | 17,541 | | | | .50 | | | | — | | | | 1.94 | | | | 19 | |
| | (.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 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2045 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,076.15 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the Class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.02 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,074.00 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.58 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2045 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.2% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 42.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 75,223 | | | | 2,267 | |
Russell U.S. Quantitative Equity Fund | | | 66,226 | | | | 2,205 | |
Russell U.S. Small Cap Equity Fund | | | 33,181 | | | | 818 | |
| | | | | | | | |
| | | | | | | 5,290 | |
| | | | | | | | |
| | |
| Fixed Income - 10.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 114,131 | | | | 1,261 | |
| | | | | | | | |
| | |
| International Equities - 37.1% | | | | | | | | |
Russell Emerging Markets Fund | | | 31,129 | | | | 569 | |
Russell Global Equity Fund | | | 164,071 | | | | 1,449 | |
Russell International Developed Markets Fund | | | 90,577 | | | | 2,646 | |
| | | | | | | | |
| | | | | | | 4,664 | |
| | | | | | | | |
| | |
| Real Assets - 11.1% | | | | | | | | |
Russell Commodity Strategies Fund | | | 79,871 | | | | 760 | |
Russell Global Real Estate Securities Fund | | | 16,940 | | | | 631 | |
| | | | | | | | |
| | | | | | | 1,391 | |
| | | | | | | | |
| | |
Total Investments - 100.2% (identified cost $10,522) | | | | | | | 12,606 | |
| | |
Other Assets and Liabilities,
Net - (0.2%) | | | | | | | (23 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 12,583 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
Domestic Equities | | | 42.0 | |
Fixed Income | | | 10.0 | |
International Equities | | | 37.1 | |
Real Assets | | | 11.1 | |
| | | | |
Total Investments | | | 100.2 | |
Other Assets and Liabilities, Net | | | (0.2 | ) |
| | | | |
| | | 100.0 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2045 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 10,522 | |
Investments, at market | | | 12,606 | |
Receivables: | | | | |
Fund shares sold | | | 49 | |
Prepaid expenses | | | 5 | |
| | | | |
Total assets | | | 12,660 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 39 | |
Fund shares redeemed | | | 9 | |
Accrued fees to affiliates | | | 2 | |
Other accrued expenses | | | 27 | |
| | | | |
Total liabilities | | | 77 | |
| | | | |
| | | | |
Net Assets | | $ | 12,583 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (2 | ) |
Accumulated net realized gain (loss) | | | (99 | ) |
Unrealized appreciation (depreciation) on investments | | | 2,084 | |
Shares of beneficial interest | | | 14 | |
Additional paid-in capital | | | 10,586 | |
| | | | |
Net Assets | | $ | 12,583 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class R1(a) | | $ | 9.20 | |
Class R1 — Net assets | | $ | 5,622,307 | |
Class R1 — Shares outstanding ($.01 par value) | | | 610,849 | |
Net asset value per share: Class R2(a) | | $ | 9.21 | |
Class R2 — Net assets | | $ | 3,093,844 | |
Class R2 — Shares outstanding ($.01 par value) | | | 335,811 | |
Net asset value per share: Class R3(a) | | $ | 9.18 | |
Class R3 — Net assets | | $ | 3,866,525 | |
Class R3 — Shares outstanding ($.01 par value) | | | 421,144 | |
| (a) | 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.
| | | | |
| | 94 | | | Statement of Assets and Liabilities |
Russell Investment Company
2045 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 151 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class R3 | | | 5 | |
Shareholder servicing fees - Class R2 | | | 3 | |
Shareholder servicing fees - Class R3 | | | 5 | |
| | | | |
Expenses | | | 13 | |
| | | | |
Net investment income (loss) | | | 138 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (34 | ) |
Capital gain distributions from Underlying Funds | | | 19 | |
| | | | |
Net realized gain (loss) | | | (15 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | 707 | |
| | | | |
Net realized and unrealized gain (loss) | | | 692 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 830 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 95 |
Russell Investment Company
2045 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended
April 30, 2012
(Unaudited) | | | Fiscal Year Ended
October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 138 | | | $ | 245 | |
Net realized gain (loss) | | | (15 | ) | | | 597 | |
Net change in unrealized appreciation (depreciation) | | | 707 | | | | (147 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 830 | | | | 695 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class R1 | | | (60 | ) | | | (68 | ) |
Class R2 | | | (37 | ) | | | (130 | ) |
Class R3 | | | (43 | ) | | | (47 | ) |
From net realized gain | | | | | | | | |
Class R1 | | | (177 | ) | | | — | |
Class R2 | | | (127 | ) | | | — | |
Class R3 | | | (164 | ) | | | — | |
| | | | | | | | |
Net decrease in net assets from distributions | | | (608 | ) | | | (245 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 2,408 | | | | (1,683 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 2,630 | | | | (1,233 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 9,953 | | | | 11,186 | |
| | | | | | | | |
End of period | | $ | 12,583 | | | $ | 9,953 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (2 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 96 | | | Statements of Changes in Net Assets |
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Russell Investment Company
2045 Strategy Fund
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 | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.10 | | | | .11 | | | | .53 | | | | .64 | | | | (.13 | ) | | | (.41 | ) | | | — | |
October 31, 2011 | | | 9.13 | | | | .20 | | | | — | (i) | | | .20 | | | | (.23 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.93 | | | | .17 | | | | 1.20 | | | | 1.37 | | | | (.17 | ) | | | — | | | | — | |
October 31, 2009 | | | 6.87 | | | | .10 | | | | 1.05 | | | | 1.15 | | | | (.09 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .07 | | | | (3.10 | ) | | | (3.03 | ) | | | (.06 | ) | | | — | | | | (.04 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.11 | | | | .12 | | | | .51 | | | | .63 | | | | (.12 | ) | | | (.41 | ) | | | — | |
October 31, 2011 | | | 9.12 | | | | .23 | | | | (.05 | ) | | | .18 | | | | (.19 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.92 | | | | .13 | | | | 1.22 | | | | 1.35 | | | | (.15 | ) | | | — | | | | — | |
October 31, 2009 | | | 6.87 | | | | .07 | | | | 1.05 | | | | 1.12 | | | | (.07 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .07 | | | | (3.11 | ) | | | (3.04 | ) | | | (.06 | ) | | | — | | | | (.03 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.08 | | | | .10 | | | | .52 | | | | .62 | | | | (.11 | ) | | | (.41 | ) | | | — | |
October 31, 2011 | | | 9.11 | | | | .15 | | | | — | (i) | | | .15 | | | | (.18 | ) | | | — | | | | — | |
October 31, 2010 | | | 7.91 | | | | .10 | | | | 1.23 | | | | 1.33 | | | | (.13 | ) | | | — | | | | — | |
October 31, 2009 | | | 6.87 | | | | .06 | | | | 1.04 | | | | 1.10 | | | | (.06 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .06 | | | | (3.12 | ) | | | (3.06 | ) | | | (.04 | ) | | | — | | | | (.03 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total
Distributions | | | $ Net Asset Value, End of Period | | | % Total
Return(c) | | | $ Net Assets,
End of Period
(000) | | | % Ratio of Expenses
to Average Net Assets, Gross (f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.54 | ) | | | 9.20 | | | | 7.62 | | | | 5,622 | | | | — | | | | — | | | | 1.21 | | | | 23 | |
| | (.23 | ) | | | 9.10 | | | | 2.12 | | | | 3,791 | | | | — | | | | — | | | | 2.06 | | | | 77 | |
| | (.17 | ) | | | 9.13 | | | | 17.47 | | | | 2,347 | | | | 1.58 | | | | — | | | | 2.02 | | | | 31 | |
| | (.09 | ) | | | 7.93 | | | | 17.10 | | | | 2,053 | | | | 4.28 | | | | — | | | | 1.48 | | | | 20 | |
| | (.10 | ) | | | 6.87 | | | | (30.60 | ) | | | 660 | | | | 6.27 | | | | — | | | | .72 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.53 | ) | | | 9.21 | | | | 7.50 | | | | 3,094 | | | | .25 | | | | .25 | | | | 1.33 | | | | 23 | |
| | (.19 | ) | | | 9.11 | | | | 1.98 | | | | 2,651 | | | | .25 | | | | .25 | | | | 2.37 | | | | 77 | |
| | (.15 | ) | | | 9.12 | | | | 17.23 | | | | 6,692 | | | | 1.79 | | | | .25 | | | | 1.53 | | | | 31 | |
| | (.07 | ) | | | 7.92 | | | | 16.73 | | | | 2,220 | | | | 4.48 | | | | .25 | | | | 1.02 | | | | 20 | |
| | (.09 | ) | | | 6.87 | | | | (30.71 | ) | | | 70 | | | | 8.21 | | | | .25 | | | | .74 | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.52 | ) | | | 9.18 | | | | 7.40 | | | | 3,867 | | | | .50 | | | | .50 | | | | 1.12 | | | | 23 | |
| | (.18 | ) | | | 9.08 | | | | 1.64 | | | | 3,511 | | | | .50 | | | | .50 | | | | 1.55 | | | | 77 | |
| | (.13 | ) | | | 9.11 | | | | 17.00 | | | | 2,147 | | | | 2.03 | | | | .50 | | | | 1.13 | | | | 31 | |
| | (.06 | ) | | | 7.91 | | | | 16.36 | | | | 702 | | | | 4.81 | | | | .50 | | | | .88 | | | | 20 | |
| | (.07 | ) | | | 6.87 | | | | (30.82 | ) | | | 72 | | | | 8.43 | | | | .50 | | | | .60 | | | | 34 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2050 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,077.00 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to this class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.70 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,074.53 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.58 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2050 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| | | | | | | | |
| Investments - 100.1% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 42.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 123,866 | | | | 3,733 | |
Russell U.S. Quantitative Equity Fund | | | 109,002 | | | | 3,629 | |
Russell U.S. Small Cap Equity Fund | | | 54,633 | | | | 1,348 | |
| | | | | | | | |
| | | | | | | 8,710 | |
| | | | | | | | |
| | |
| Fixed Income - 10.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 187,756 | | | | 2,075 | |
| | | | | | | | |
| | |
| International Equities - 37.0% | | | | | | | | |
Russell Emerging Markets Fund | | | 51,261 | | | | 937 | |
Russell Global Equity Fund | | | 269,878 | | | | 2,383 | |
Russell International Developed Markets Fund | | | 149,002 | | | | 4,352 | |
| | | | | | | | |
| | | | | | | 7,672 | |
| | | | | | | | |
| | |
| Real Assets - 11.1% | | | | | | | | |
Russell Commodity Strategies Fund | | | 131,734 | | | | 1,254 | |
Russell Global Real Estate Securities Fund | | | 28,059 | | | | 1,045 | |
| | | | | | | | |
| | | | | | | 2,299 | |
| | | | | | | | |
| | |
Total Investments - 100.1% (identified cost $16,877) | | | | | | | 20,756 | |
| | |
Other Assets and Liabilities, Net - (0.1%) | | | | | | | (24 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 20,732 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
| | | | |
Domestic Equities | | | 42.0 | |
Fixed Income | | | 10.0 | |
International Equities | | | 37.0 | |
Real Assets | | | 11.1 | |
| | | | |
Total Investments | | | 100.1 | |
Other Assets and Liabilities, Net | | | (0.1 | ) |
| | | | |
| |
| | | 100.0 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2050 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 16,877 | |
Investments, at market | | | 20,756 | |
Receivables: | | | | |
Fund shares sold | | | 50 | |
Prepaid expenses | | | 4 | |
| | | | |
Total assets | | | 20,810 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 10 | |
Fund shares redeemed | | | 39 | |
Accrued fees to affiliates | | | 2 | |
Other accrued expenses | | | 27 | |
| | | | |
Total liabilities | | | 78 | |
| | | | |
| | | | |
Net Assets | | $ | 20,732 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | (2 | ) |
Accumulated net realized gain (loss) | | | (69 | ) |
Unrealized appreciation (depreciation) on investments | | | 3,879 | |
Shares of beneficial interest | | | 27 | |
Additional paid-in capital | | | 16,897 | |
| | | | |
Net Assets | | | 20,732 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class R1(a) | | $ | 7.78 | |
Class R1 — Net assets | | $ | 14,238,395 | |
Class R1 — Shares outstanding ($.01 par value) | | | 1,830,897 | |
Net asset value per share: Class R2(a) | | $ | 7.78 | |
Class R2 — Net assets | | $ | 2,783,157 | |
Class R2 — Shares outstanding ($.01 par value) | | | 357,531 | |
Net asset value per share: Class R3(a) | | $ | 7.77 | |
Class R3 — Net assets | | $ | 3,710,599 | |
Class R3 — Shares outstanding ($.01 par value) | | | 477,794 | |
| (a) | 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.
| | | | |
| | 102 | | | Statement of Assets and Liabilities |
Russell Investment Company
2050 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 197 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class R3 | | | 6 | |
Shareholder servicing fees - Class R2 | | | 2 | |
Shareholder servicing fees - Class R3 | | | 6 | |
| | | | |
Expenses | | | 14 | |
| | | | |
Net investment income (loss) | | | 183 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 15 | |
Capital gain distributions from Underlying Funds | | | 24 | |
| | | | |
Net realized gain (loss) | | | 39 | |
Net change in unrealized appreciation (depreciation) on investments | | | 891 | |
| | | | |
Net realized and unrealized gain (loss) | | | 930 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 1,113 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 103 |
Russell Investment Company
2050 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 183 | | | $ | 449 | |
Net realized gain (loss) | | | 39 | | | | 2,662 | |
Net change in unrealized appreciation (depreciation) | | | 891 | | | | (1,445 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 1,113 | | | | 1,666 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class R1 | | | (102 | ) | | | (85 | ) |
Class R2 | | | (30 | ) | | | (286 | ) |
Class R3 | | | (53 | ) | | | (78 | ) |
From net realized gain | | | | | | | | |
Class R1 | | | (1,220 | ) | | | (5 | ) |
Class R2 | | | (452 | ) | | | (26 | ) |
Class R3 | | | (881 | ) | | | (7 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (2,738 | ) | | | (487 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 9,211 | | | | (9,796 | ) |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 7,586 | | | | (8,617 | ) |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 13,146 | | | | 21,763 | |
| | | | | | | | |
End of period | | $ | 20,732 | | | $ | 13,146 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (2 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 104 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
2050 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ Net 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 | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.19 | | | | .08 | | | | .42 | | | | .50 | | | | (.13 | ) | | | (1.78 | ) | | | — | |
October 31, 2011 | | | 9.22 | | | | .18 | | | | .04 | | | | .22 | | | | (.23 | ) | | | (.02 | ) | | | — | |
October 31, 2010 | | | 8.03 | | | | .14 | | | | 1.24 | | | | 1.38 | | | | (.17 | ) | | | (.02 | ) | | | — | |
October 31, 2009 | | | 6.98 | | | | .10 | | | | 1.05 | | | | 1.15 | | | | (.10 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .09 | | | | (2.99 | ) | | | (2.90 | ) | | | (.08 | ) | | | — | | | | (.04 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.19 | | | | .10 | | | | .39 | | | | .49 | | | | (.12 | ) | | | (1.78 | ) | | | — | |
October 31, 2011 | | | 9.21 | | | | .25 | | | | (.07 | ) | | | .18 | | | | (.18 | ) | | | (.02 | ) | | | — | |
October 31, 2010 | | | 8.02 | | | | .14 | | | | 1.22 | | | | 1.36 | | | | (.15 | ) | | | (.02 | ) | | | — | |
October 31, 2009 | | | 6.98 | | | | .09 | | | | 1.04 | | | | 1.13 | | | | (.09 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .07 | | | | (2.98 | ) | | | (2.91 | ) | | | (.08 | ) | | | — | | | | (.03 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.18 | | | | .09 | | | | .39 | | | | .48 | | | | (.11 | ) | | | (1.78 | ) | | | — | |
October 31, 2011 | | | 9.21 | | | | .16 | | | | .01 | | | | .17 | | | | (.18 | ) | | | (.02 | ) | | | — | |
October 31, 2010 | | | 8.02 | | | | .10 | | | | 1.24 | | | | 1.34 | | | | (.13 | ) | | | (.02 | ) | | | — | |
October 31, 2009 | | | 6.99 | | | | .05 | | | | 1.05 | | | | 1.10 | | | | (.07 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .06 | | | | (2.98 | ) | | | (2.92 | ) | | | (.06 | ) | | | — | | | | (.03 | ) |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total Distributions | | | $ Net Asset Value, End of Period | | | % Total Return(c) | | | $ Net Assets, End of Period (000) | | | % Ratio of Expenses to Average Net Assets, Gross(f)(g) | | | % Ratio of Expenses to Average Net Assets, Net(f)(g) | | | % Ratio of Net Investment Income to Average Net Assets(b)(c) | | | % Portfolio Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.91 | ) | | | 7.78 | | | | 7.70 | | | | 14,238 | | | | — | | | | — | | | | 1.06 | | | | 19 | |
| | (.25 | ) | | | 9.19 | | | | 2.28 | | | | 5,861 | | | | — | | | | — | | | | 1.92 | | | | 72 | |
| | (.19 | ) | | | 9.22 | | | | 17.46 | | | | 2,454 | | | | .93 | | | | — | | | | 1.58 | | | | 28 | |
| | (.10 | ) | | | 8.03 | | | | 17.32 | | | | 490 | | | | 2.39 | | | | — | | | | 1.41 | | | | 20 | |
| | (.12 | ) | | | 6.98 | | | | (29.54 | ) | | | 71 | | | | 21.57 | | | | — | | | | .90 | | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.90 | ) | | | 7.78 | | | | 7.57 | | | | 2,783 | | | | .25 | | | | .25 | | | | 1.27 | | | | 19 | |
| | (.20 | ) | | | 9.19 | | | | 1.96 | | | | 2,408 | | | | .25 | | | | .25 | | | | 2.61 | | | | 72 | |
| | (.17 | ) | | | 9.21 | | | | 17.20 | | | | 15,616 | | | | 1.21 | | | | .25 | | | | 1.62 | | | | 28 | |
| | (.09 | ) | | | 8.02 | | | | 16.95 | | | | 8,959 | | | | 1.95 | | | | .25 | | | | 1.28 | | | | 20 | |
| | (.11 | ) | | | 6.98 | | | | (29.65 | ) | | | 71 | | | | 21.83 | | | | .25 | | | | .76 | | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.89 | ) | | | 7.77 | | | | 7.45 | | | | 3,711 | | | | .50 | | | | .50 | | | | 1.14 | | | | 19 | |
| | (.20 | ) | | | 9.18 | | | | 1.78 | | | | 4,877 | | | | .50 | | | | .50 | | | | 1.65 | | | | 72 | |
| | (.15 | ) | | | 9.21 | | | | 16.94 | | | | 3,693 | | | | 1.45 | | | | .50 | | | | 1.23 | | | | 28 | |
| | (.07 | ) | | | 8.02 | | | | 16.66 | | | | 1,436 | | | | 2.34 | | | | .50 | | | | .77 | | | | 20 | |
| | (.09 | ) | | | 6.99 | | | | (29.77 | ) | | | 71 | | | | 22.08 | | | | .50 | | | | .61 | | | | 6 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2055 Strategy Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,076.40 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,075.24 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.29 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,074.33 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.58 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
2055 Strategy Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market Value $ | |
| | | | | | | | |
| | | | | | | | |
| Investments - 100.1% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 42.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 6,806 | | | | 205 | |
Russell U.S. Quantitative Equity Fund | | | 5,990 | | | | 200 | |
Russell U.S. Small Cap Equity Fund | | | 3,002 | | | | 74 | |
| | | | | | | | |
| | | | | | | 479 | |
| | | | | | | | |
| | |
| Fixed Income - 10.0% | | | | | | | | |
Russell Strategic Bond Fund | | | 10,302 | | | | 114 | |
| | | | | | | | |
| | |
| International Equities - 37.0% | | | | | | | | |
Russell Emerging Markets Fund | | | 2,806 | | | | 51 | |
Russell Global Equity Fund | | | 14,829 | | | | 131 | |
Russell International Developed Markets Fund | | | 8,185 | | | | 239 | |
| | | | | | | | |
| | | | | | | 421 | |
| | | | | | | | |
| | |
| Real Assets - 11.1% | | | | | | | | |
Russell Commodity Strategies Fund | | | 7,212 | | | | 69 | |
Russell Global Real Estate Securities Fund | | | 1,540 | | | | 57 | |
| | | | | | | | |
| | | | | | | 126 | |
| | | | | | | | |
| | |
Total Investments - 100.1% (identified cost $1,065) | | | | | | | 1,140 | |
| | |
Other Assets and Liabilities,
Net - (0.1%) | | | | | | | (1 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 1,139 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net Assets | |
| | | | |
Domestic Equities | | | 42.0 | |
Fixed Income | | | 10.0 | |
International Equities | | | 37.0 | |
Real Assets | | | 11.1 | |
| | | | |
Total Investments | | | 100.1 | |
Other Assets and Liabilities, Net | | | (0.1 | ) |
| | | | |
| |
| | | 100.0 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
2055 Strategy Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Assets | | | | |
Investments, at identified cost | | $ | 1,065 | |
Investments, at market | | | 1,140 | |
Receivables: | | | | |
Fund shares sold | | | 1 | |
| | | | |
Total assets | | | 1,141 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Investments purchased | | | 2 | |
| | | | |
Total liabilities | | | 2 | |
| | | | |
| | | | |
Net Assets | | $ | 1,139 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | $ | — | |
Accumulated net realized gain (loss) | | | 1 | |
Unrealized appreciation (depreciation) on investments | | | 75 | |
Shares of beneficial interest | | | 1 | |
Additional paid-in capital | | | 1,062 | |
| | | | |
Net Assets | | $ | 1,139 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class R1(a) | | $ | 10.19 | |
Class R1 — Net assets | | $ | 106,392 | |
Class R1 — Shares outstanding ($.01 par value) | | | 10,436 | |
Net asset value per share: Class R2(a) | | $ | 10.19 | |
Class R2 — Net assets | | $ | 898,045 | |
Class R2 — Shares outstanding ($.01 par value) | | | 88,120 | |
Net asset value per share: Class R3(a) | | $ | 10.19 | |
Class R3 — Net assets | | $ | 134,546 | |
Class R3 — Shares outstanding ($.01 par value) | | | 13,204 | |
| (a) | 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.
| | | | |
| | 110 | | | Statement of Assets and Liabilities |
Russell Investment Company
2055 Strategy Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 14 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class R3 | | | — | * |
Shareholder servicing fees - Class R2 | | | 1 | |
Shareholder servicing fees - Class R3 | | | — | * |
| | | | |
Expenses | | | 1 | |
| | | | |
Net investment income (loss) | | | 13 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | (1 | ) |
Capital gain distributions from Underlying Funds | | | 2 | |
| | | | |
Net realized gain (loss) | | | 1 | |
Net change in unrealized appreciation (depreciation) on investments | | | 63 | |
| | | | |
Net realized and unrealized gain (loss) | | | 64 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 77 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 111 |
Russell Investment Company
2055 Strategy Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011* | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 13 | | | $ | 1 | |
Net realized gain (loss) | | | 1 | | | | 2 | |
Net change in unrealized appreciation (depreciation) | | | 63 | | | | 12 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 77 | | | | 15 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class R1 | | | (1 | ) | | | (1 | ) |
Class R2 | | | (11 | ) | | | — | ** |
Class R3 | | | (1 | ) | | | — | ** |
From net realized gain | | | | | | | | |
Class R1 | | | — | ** | | | — | |
Class R2 | | | (2 | ) | | | — | |
Class R3 | | | — | ** | | | — | |
| | | | | | | | |
Net decrease in net assets from distributions | | | (15 | ) | | | (1 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | 81 | | | | 982 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | 143 | | | | 996 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 996 | | | | — | |
| | | | | | | | |
End of period | | $ | 1,139 | | | $ | 996 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | — | | | $ | — | |
| * | For the period January 1, 2011 (commencement of operations) to October 31, 2011. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 112 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
2055 Strategy Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ Net 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 | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.63 | | | | .13 | | | | .59 | | | | .72 | | | | (.14 | ) | | | (.02 | ) |
October 31, 2011(3) | | | 10.00 | | | | .06 | | | | (.37 | ) | | | (.31 | ) | | | (.06 | ) | | | — | |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.63 | | | | .12 | | | | .59 | | | | .71 | | | | (.13 | ) | | | (.02 | ) |
October 31, 2011(3) | | | 10.00 | | | | .03 | | | | (.36 | ) | | | (.33 | ) | | | (.04 | ) | | | — | |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 9.63 | | | | .11 | | | | .59 | | | | .70 | | | | (.12 | ) | | | (.02 | ) |
October 31, 2011(3) | | | 10.00 | | | | .02 | | | | (.37 | ) | | | (.35 | ) | | | (.02 | ) | | | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$ Total Distributions | | | $ Net Asset Value, End of Period | | | % Total Return(c) | | | $ Net Assets, End of Period (000) | | | % Ratio of Expenses to Average Net Assets, Gross(f)(g) | | | % Ratio of Expenses
to Average Net Assets,
Net(f)(g) | | | % Ratio of Net
Investment Income
to Average Net Assets(b)(c) | | | % Portfolio
Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.16 | ) | | | 10.19 | | | | 7.64 | | | | 106 | | | | — | | | | — | | | | 1.36 | | | | 3 | |
| | (.06 | ) | | | 9.63 | | | | (3.09 | ) | | | 97 | | | | — | | | | — | | | | .63 | | | | 47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.15 | ) | | | 10.19 | | | | 7.52 | | | | 898 | | | | .25 | | | | .25 | | | | 1.24 | | | | 3 | |
| | (.04 | ) | | | 9.63 | | | | (3.31 | ) | | | 793 | | | | .25 | | | | .25 | | | | .28 | | | | 47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.14 | ) | | | 10.19 | | | | 7.43 | | | | 135 | | | | .50 | | | | .50 | | | | 1.09 | | | | 3 | |
| | (.02 | ) | | | 9.63 | | | | (3.49 | ) | | | 106 | | | | .50 | | | | .50 | | | | .21 | | | | 47 | |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
In Retirement Fund
Shareholder Expense Example — April 30, 2012 (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 ongoing costs, including 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, 2011 to April 30, 2012.
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, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,049.13 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.27 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R1 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,052.05 | | | $ | 1,024.86 | |
Expenses Paid During Period* | | $ | — | | | $ | — | |
| * | There were no expenses charged to the class. |
| | | | | | | | |
Class R2 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,050.44 | | | $ | 1,023.62 | |
Expenses Paid During Period* | | $ | 1.27 | | | $ | 1.26 | |
| * | 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 182/366 (to reflect the one-half year period). |
| | | | | | | | |
Class R3 | | Actual
Performance | | | Hypothetical
Performance
(5% return
before expenses) | |
| | | | | | | | |
Beginning Account Value | | | | | | | | |
November 1, 2011 | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | | | | | | | |
April 30, 2012 | | $ | 1,048.55 | | | $ | 1,022.38 | |
Expenses Paid During Period* | | $ | 2.55 | | | $ | 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 182/366 (to reflect the one-half year period). |
Russell Investment Company
In Retirement Fund
Schedule of Investments — April 30, 2012 (Unaudited)
Amounts in thousands (except share amounts)
| | | | | | | | |
| | | Shares | | | Market
Value
$ | |
| | | | | | | | |
| Investments - 100.0% | | | | | | | | |
Other Russell Investment Company Series Mutual Funds - Class Y Shares | | | | | | | | |
| | |
| Domestic Equities - 13.0% | | | | | | | | |
Russell U.S. Core Equity Fund | | | 138,032 | | | | 4,160 | |
Russell U.S. Quantitative Equity Fund | | | 134,229 | | | | 4,469 | |
Russell U.S. Small Cap Equity Fund | | | 56,213 | | | | 1,387 | |
| | | | | | | | |
| | | | | | | 10,016 | |
| | | | | | | | |
| | |
| Fixed Income - 68.0% | | | | | | | | |
Russell Investment Grade Bond Fund | | | 684,518 | | | | 15,409 | |
Russell Short Duration Bond Fund | | | 317,047 | | | | 6,163 | |
Russell Strategic Bond Fund | | | 2,788,870 | | | | 30,817 | |
| | | | | | | | |
| | | | | | | 52,389 | |
| | | | | | | | |
| | |
| International Equities - 13.8% | | | | | | | | |
Russell Emerging Markets Fund | | | 50,575 | | | | 925 | |
Russell Global Equity Fund | | | 488,605 | | | | 4,314 | |
Russell International Developed Markets Fund | | | 184,628 | | | | 5,393 | |
| | | | | | | | |
| | | | | | | 10,632 | |
| | | | | | | | |
| | |
| Real Assets - 5.2% | | | | | | | | |
Russell Commodity Strategies Fund | | | 210,410 | | | | 2,003 | |
Russell Global Real Estate Securities Fund | | | 53,789 | | | | 2,003 | |
| | | | | | | | |
| | | | | | | 4,006 | |
| | | | | | | | |
| | |
Total Investments - 100.0%
(identified cost $65,608) | | | | | | | 77,043 | |
| | |
Other Assets and Liabilities,
Net - (0.0%) | | | | | | | (30 | ) |
| | | | | | | | |
| | |
| Net Assets - 100.0% | | | | | | | 77,013 | |
| | | | | | | | |
Presentation of Portfolio Holdings — April 30, 2012 (Unaudited)
| | | | |
| Categories | | % of Net
Assets | |
Domestic Equities | | | 13.0 | |
Fixed Income | | | 68.0 | |
International Equities | | | 13.8 | |
Real Assets | | | 5.2 | |
| | | | |
Total Investments | | | 100.0 | |
Other Assets and Liabilities, Net | | | (— | )* |
| | | | |
| |
| | | 100.0 | |
| | | | |
| * | Less than .05% of net assets |
See accompanying notes which are an integral part of the financial statements.
Russell Investment Company
In Retirement Fund
Statement of Assets and Liabilities — April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
Assets | | | | |
Investments, at identified cost | | $ | 65,608 | |
Investments, at market | | | 77,043 | |
Receivables: | | | | |
Investments sold | | | 2,247 | |
Fund shares sold | | | 82 | |
Prepaid expenses | | | 15 | |
| | | | |
Total assets | | | 79,387 | |
| | | | |
| |
Liabilities | | | | |
Payables: | | | | |
Fund shares redeemed | | | 2,328 | |
Accrued fees to affiliates | | | 14 | |
Other accrued expenses | | | 32 | |
| | | | |
Total liabilities | | | 2,374 | |
| | | | |
| | | | |
Net Assets | | $ | 77,013 | |
| | | | |
Net Assets Consist of: | | | | |
Undistributed (overdistributed) net investment income | | | (15 | ) |
Accumulated net realized gain (loss) | | | (2,240 | ) |
Unrealized appreciation (depreciation) on investments | | | 11,435 | |
Shares of beneficial interest | | | 74 | |
Additional paid-in capital | | | 67,759 | |
| | | | |
Net Assets | | | 77,013 | |
| | | | |
Net Asset Value, offering and redemption price per share: | | | | |
Net asset value per share: Class A(a) | | $ | 10.50 | |
| | | | |
Maximum offering price per share (Net asset value plus sales charge of 5.75%): Class A | | $ | 11.14 | |
Class A — Net assets | | $ | 1,023,253 | |
Class A — Shares outstanding ($.01 par value) | | | 97,425 | |
Net asset value per share: Class R1(a) | | $ | 10.38 | |
Class R1 — Net assets | | $ | 37,789,609 | |
Class R1 — Shares outstanding ($.01 par value) | | | 3,642,198 | |
Net asset value per share: Class R2(a) | | $ | 10.37 | |
Class R2 — Net assets | | $ | 11,192,065 | |
Class R2 — Shares outstanding ($.01 par value) | | | 1,079,669 | |
Net asset value per share: Class R3(a) | | $ | 10.34 | |
Class R3 — Net assets | | $ | 27,008,157 | |
Class R3 — Shares outstanding ($.01 par value) | | | 2,612,560 | |
| | | | |
(a) 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.
| | | | |
| | 118 | | | Statement of Assets and Liabilities |
Russell Investment Company
In Retirement Fund
Statement of Operations — For the Period Ended April 30, 2012 (Unaudited)
| | | | |
| Amounts in thousands | | | |
| | | | |
Investment Income | | | | |
Income distribution from Underlying Funds | | $ | 1,580 | |
| | | | |
| |
Expenses | | | | |
Distribution fees - Class A | | | 1 | |
Distribution fees - Class R3 | | | 40 | |
Shareholder servicing fees - Class R2 | | | 17 | |
Shareholder servicing fees - Class R3 | | | 40 | |
| | | | |
Expenses | | | 98 | |
| | | | |
Net investment income (loss) | | | 1,482 | |
| | | | |
| |
Net Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investments | | | 441 | |
Capital gain distributions from Underlying Funds | | | 103 | |
| | | | |
Net realized gain (loss) | | | 544 | |
Net change in unrealized appreciation (depreciation) on investments | | | 1,884 | |
| | | | |
Net realized and unrealized gain (loss) | | | 2,428 | |
| | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | 3,910 | |
| | | | |
See accompanying notes which are an integral part of the financial statements.
| | |
| Statement of Operations | | 119 |
Russell Investment Company
In Retirement Fund
Statements of Changes in Net Assets
| | | | | | | | |
| Amounts in thousands | | Period Ended April 30, 2012 (Unaudited) | | | Fiscal Year Ended October 31, 2011 | |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 1,482 | | | $ | 1,518 | |
Net realized gain (loss) | | | 544 | | | | 203 | |
Net change in unrealized appreciation (depreciation) | | | 1,884 | | | | (1,111 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 3,910 | | | | 610 | |
| | | | | | | | |
| | |
Distributions | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | | (5 | ) | | | (15 | ) |
Class R1 | | | (690 | ) | | | (618 | ) |
Class R2 | | | (243 | ) | | | (385 | ) |
Class R3 | | | (559 | ) | | | (500 | ) |
From net realized gain | | | | | | | | |
Class A | | | (4 | ) | | | — | |
Class R1 | | | (140 | ) | | | (5 | ) |
Class R2 | | | (53 | ) | | | (18 | ) |
Class R3 | | | (130 | ) | | | (5 | ) |
| | | | | | | | |
Net decrease in net assets from distributions | | | (1,824 | ) | | | (1,546 | ) |
| | | | | | | | |
| | |
Share Transactions | | | | | | | | |
Net increase (decrease) in net assets from share transactions | | | (15,877 | ) | | | 85,769 | |
| | | | | | | | |
Total Net Increase (Decrease) in Net Assets | | | (13,791 | ) | | | 84,833 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 90,804 | | | | 5,971 | |
| | | | | | | | |
End of period | | $ | 77,013 | | | $ | 90,804 | |
| | | | | | | | |
Undistributed (overdistributed) net investment income included in net assets | | $ | (15 | ) | | $ | — | |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 120 | | | Statements of Changes in Net Assets |
(This page intentionally left blank)
Russell Investment Company
In Retirement Fund
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout Each Period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ Net 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 | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.10 | | | | .18 | | | | .31 | | | | .49 | | | | (.05 | ) | | | (.04 | ) | | | — | |
October 31, 2011(4) | | | 10.25 | | | | .14 | | | | (.15 | ) | | | (.01 | ) | | | (.14 | ) | | | — | | | | — | |
Class R1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.10 | | | | .19 | | | | .32 | | | | .51 | | | | (.19 | ) | | | (.04 | ) | | | — | |
October 31, 2011 | | | 10.28 | | | | .24 | | | | .07 | | | | .31 | | | | (.45 | ) | | | (.04 | ) | | | — | |
October 31, 2010 | | | 9.27 | | | | .27 | | | | 1.04 | | | | 1.31 | | | | (.30 | ) | | | — | | | | — | |
October 31, 2009 | | | 8.12 | | | | .32 | | | | 1.12 | | | | 1.44 | | | | (.29 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .25 | | | | (1.87 | ) | | | (1.62 | ) | | | (.25 | ) | | | — | | | | (.01 | ) |
Class R2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.10 | | | | .18 | | | | .32 | | | | .50 | | | | (.19 | ) | | | (.04 | ) | | | — | |
October 31, 2011 | | | 10.28 | | | | .27 | | | | .01 | | | | .28 | | | | (.42 | ) | | | (.04 | ) | | | — | |
October 31, 2010 | | | 9.27 | | | | .28 | | | | 1.01 | | | | 1.29 | | | | (.28 | ) | | | — | | | | — | |
October 31, 2009 | | | 8.12 | | | | .31 | | | | 1.11 | | | | 1.42 | | | | (.27 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 10.00 | | | | .23 | | | | (1.86 | ) | | | (1.63 | ) | | | (.24 | ) | | | — | | | | (.01 | ) |
Class R3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2012* | | | 10.08 | | | | .17 | | | | .31 | | | | .48 | | | | (.18 | ) | | | (.04 | ) | | | — | |
October 31, 2011 | | | 10.27 | | | | .19 | | | | .07 | | | | .26 | | | | (.41 | ) | | | (.04 | ) | | | — | |
October 31, 2010 | | | 9.26 | | | | .23 | | | | 1.04 | | | | 1.27 | | | | (.26 | ) | | | — | | | | — | |
October 31, 2009 | | | 8.12 | | | | .27 | | | | 1.13 | | | | 1.40 | | | | (.26 | ) | | | — | | | | — | |
October 31, 2008(2) | | | 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)(d) | | | $ Net Assets, End of Period (000) | | | % Ratio of Expenses to Average Net Assets, Gross(f)(g) | | | % Ratio of Expenses to Average Net Assets, Net(f)(g) | | | % Ratio of Net Investment Income to Average Net Assets(b)(c) | | | % Portfolio Turnover Rate(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.09 | ) | | | 10.50 | | | | 4.91 | | | | 1,023 | | | | .25 | | | | .25 | | | | 1.77 | | | | 9 | |
| | (.14 | ) | | | 10.10 | | | | (.06 | ) | | | 1,012 | | | | .25 | | | | .25 | | | | 1.40 | | | | 43 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.23 | ) | | | 10.38 | | | | 5.20 | | | | 37,790 | | | | — | | | | — | | | | 1.88 | | | | 9 | |
| | (.49 | ) | | | 10.10 | | | | 3.10 | | | | 36,059 | | | | — | | | | — | | | | 2.35 | | | | 43 | |
| | (.30 | ) | | | 10.28 | | | | 14.43 | | | | 736 | | | | 2.13 | | | | — | | | | 2.80 | | | | 52 | |
| | (.29 | ) | | | 9.27 | | | | 18.68 | | | | 196 | | | | 4.67 | | | | — | | | | 3.86 | | | | 26 | |
| | (.26 | ) | | | 8.12 | | | | (16.82 | ) | | | 84 | | | | 20.48 | | | | — | | | | 2.58 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.23 | ) | | | 10.37 | | | | 5.04 | | | | 11,192 | | | | .25 | | | | .25 | | | | 1.80 | | | | 9 | |
| | (.46 | ) | | | 10.10 | | | | 2.84 | | | | 17,288 | | | | .25 | | | | .25 | | | | 2.60 | | | | 43 | |
| | (.28 | ) | | | 10.28 | | | | 14.16 | | | | 3,809 | | | | 2.47 | | | | .25 | | | | 2.86 | | | | 52 | |
| | (.27 | ) | | | 9.27 | | | | 18.43 | | | | 2,356 | | | | 3.98 | | | | .25 | | | | 3.77 | | | | 26 | |
| | (.25 | ) | | | 8.12 | | | | (16.95 | ) | | | 83 | | | | 20.73 | | | | .25 | | | | 2.43 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (.22 | ) | | | 10.34 | | | | 4.85 | | | | 27,008 | | | | .50 | | | | .50 | | | | 1.66 | | | | 9 | |
| | (.45 | ) | | | 10.08 | | | | 2.55 | | | | 36,445 | | | | .50 | | | | .50 | | | | 1.90 | | | | 43 | |
| | (.26 | ) | | | 10.27 | | | | 13.88 | | | | 1,426 | | | | 2.71 | | | | .50 | | | | 2.39 | | | | 52 | |
| | (.26 | ) | | | 9.26 | | | | 18.09 | | | | 758 | | | | 4.83 | | | | .50 | | | | 3.24 | | | | 26 | |
| | (.23 | ) | | | 8.12 | | | | (17.08 | ) | | | 85 | | | | 20.94 | | | | .50 | | | | 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, 2012 (Unaudited)
| * | For the period ended April 30, 2012 (Unaudited). |
| (1) | For the period December 29, 2006 (commencement of operations) to October 31, 2007. |
| (2) | For the period March 31, 2008 (commencement of operations) to October 31, 2008. |
| (3) | For the period January 1, 2011 (commencement of operations) to October 31, 2011. |
| (4) | For the period February 28, 2011 (commencement of operations) to October 31, 2011. |
| (a) | Average daily shares outstanding were used for this calculation. |
| (b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Underlying Funds in which the Fund invests. |
| (c) | The ratios for periods less than one year are not annualized. |
| (d) | Total return for Class A does not reflect a front-end sales charge. If sales charges were included, the total return would be lower. |
| (e) | May reflect amounts waived and/or reimbursed by Russell Investment Management Company (“RIMCo”) and/or Russell Fund Services Company (“RFSC”). |
| (f) | The ratios for periods less than one year are annualized. |
| (g) | The calculation includes only those expenses charged directly to the Fund and does not include expenses charged to the Underlying Funds in which the Fund invests. |
| (h) | Amounts include reclassification between income and return of capital. |
| (i) | Less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
| | | | |
| | 124 | | | Notes to Financial Highlights |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements — April 30, 2012 (Unaudited)
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 38 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 (“Investment Company Act”), 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, as amended (“Master Trust Agreement”). 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
Each of the Target Portfolio Funds listed in the table below is a “fund of funds” which seeks to achieve its objective by investing in a combination of several other RIC funds (the “Underlying Funds”) as set forth in the table below. The Funds intend their strategy of investing in a combination of Underlying Funds to result in investment diversification that an investor could otherwise achieve only by holding numerous individual investments. Russell Investment Management Company (“RIMCo”), the Funds’ investment adviser, may modify the target allocation for any Fund and/or the Underlying Funds in which a Fund invests from time to time based on 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. Modifications in the allocations to the Underlying Funds are typically based on strategic, long-term allocation decisions. A Fund’s actual allocation may vary from the target strategic asset allocation at any point in time (1) due to market movements, (2) by up to +/- 3% at the equities, fixed income or real asset category level based on RIMCo’s assessment of relative market valuation of the asset classes represented by each Underlying Fund, (3) due to the implementation over a period of time of a change to the target strategic asset allocation including the addition of a new Underlying Fund. There may be no changes in the asset allocation or to the Underlying Funds in a given year or such changes may be made one or more times in a year. In the future, the Funds may also invest in other Underlying Funds that pursue investment strategies not pursued by the current Underlying Funds or represent asset classes which are not currently represented by the Underlying Funds.
| | | | | | | | | | | | | | | | | | | | |
| | | Asset Allocation Targets as of February 29, 2012* | |
| Underlying Funds | | Conservative Strategy Fund | | | Moderate Strategy Fund | | | Balanced Strategy Fund | | | Growth Strategy Fund | | | Equity Growth Strategy Fund | |
| | | | | | | | | | | | | | | | | | | | |
Domestic Equity Funds | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | | 3 | % | | | 5 | % | | | 10 | % | | | 12 | % | | | 15 | % |
Russell U.S. Quantitative Equity Fund | | | 3 | | | | 6 | | | | 9 | | | | 11 | | | | 14 | |
Russell U.S. Small Cap Equity Fund | | | — | | | | 2 | | | | 4 | | | | 6 | | | | 7 | |
Fixed Income Funds | | | | | | | | | | | | | | | | | | | | |
Russell Global Opportunistic Credit Fund | | | 2 | | | | 2 | | | | 3 | | | | 4 | | | | 5 | |
Russell Investment Grade Bond Fund | | | 20 | | | | 20 | | | | — | | | | — | | | | — | |
Russell Short Duration Bond Fund | | | 18 | | | | — | | | | — | | | | — | | | | — | |
Russell Strategic Bond Fund | | | 38 | | | | 36 | | | | 35 | | | | 15 | | | | — | |
International Equity Funds | | | | | | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund | | | — | | | | 3 | | | | 4 | | | | 5 | | | | 7 | |
Russell Global Equity Fund | | | 5 | | | | 8 | | | | 10 | | | | 14 | | | | 14 | |
Russell International Developed Markets Fund | | | 5 | | | | 9 | | | | 15 | | | | 19 | | | | 23 | |
Real Asset Funds | | | | | | | | | | | | | | | | | | | | |
Russell Commodity Strategies Fund | | | 2 | | | | 3 | | | | 4 | | | | 6 | | | | 6 | |
Russell Global Infrastructure Fund | | | 2 | | | | 3 | | | | 3 | | | | 4 | | | | 4 | |
Russell Global Real Estate Securities Fund | | | 2 | | | | 3 | | | | 3 | | | | 4 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | |
| * | Prospectus dated February 29, 2012 |
Target Date Funds
Each of the Target Date Funds listed in the table below is a “fund of funds” which seeks to achieve its objective by investing in a combination of several 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 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 fixed income Underlying Funds, 26% exposure to domestic and international equity Underlying Funds and 6% exposure to the real asset Underlying Funds. This means 32% of the investment will be exposed to the domestic and international equity and real asset Underlying Funds, 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
| | |
| Notes to Financial Statements | | 125 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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 Funds may also invest in other Underlying Funds. Modifications 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.
| | | | | | | | | | | | | | | | | | | | |
| | | Asset Allocation Targets as of February 29, 2012* | |
| Underlying Funds | | 2015 Strategy Fund | | | 2020 Strategy Fund | | | 2025 Strategy Fund | | | 2030 Strategy Fund | | | 2035 Strategy Fund | |
| | | | | | | | | | | | | | | | | | | | |
Domestic Equity Funds | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | | 6 | % | | | 9 | % | | | 12 | % | | | 15 | % | | | 18 | % |
Russell U.S. Quantitative Equity Fund | | | 7 | | | | 9 | | | | 12 | | | | 15 | | | | 17 | |
Russell U.S. Small Cap Equity Fund | | | 3 | | | | 3 | | | | 4 | | | | 6 | | | | 7 | |
Fixed Income Funds | | | | | | | | | | | | | | | | | | | | |
Russell Investment Grade Bond Fund | | | 20 | | | | 12 | | | | — | | | | — | | | | — | |
Russell Short Duration Bond Fund | | | 2 | | | | — | | | | — | | | | — | | | | — | |
Russell Strategic Bond Fund | | | 40 | | | | 40 | | | | 39 | | | | 22 | | | | 10 | |
International Equity Funds | | | | | | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund | | | 2 | | | | 3 | | | | 3 | | | | 4 | | | | 5 | |
Russell Global Equity Fund | | | 6 | | | | 7 | | | | 8 | | | | 10 | | | | 11 | |
Russell International Developed Markets Fund | | | 8 | | | | 11 | | | | 15 | | | | 18 | | | | 21 | |
Real Asset Funds | | | | | | | | | | | | | | | | | | | | |
Russell Commodity Strategies Fund | | | 3 | | | | 3 | | | | 4 | | | | 6 | | | | 6 | |
Russell Global Real Estate Securities Fund | | | 3 | | | | 3 | | | | 3 | | | | 4 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Asset Allocation Targets as of February 29, 2012* | |
| Underlying Funds | | 2040 Strategy Fund | | | 2045 Strategy Fund | | | 2050 Strategy Fund | | | 2055 Strategy Fund | | | In Retirement Fund | |
| | | | | | | | | | | | | | | | | | | | |
Domestic Equity Funds | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | | 18 | % | | | 18 | % | | | 18 | % | | | 18 | % | | | 5 | % |
Russell U.S. Quantitative Equity Fund | | | 17 | | | | 17 | | | | 17 | | | | 17 | | | | 6 | |
Russell U.S. Small Cap Equity Fund | | | 7 | | | | 7 | | | | 7 | | | | 7 | | | | 2 | |
Fixed Income Funds | | | | | | | | | | | | | | | | | | | | |
Russell Investment Grade Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 20 | |
Russell Short Duration Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 8 | |
Russell Strategic Bond Fund | | | 10 | | | | 10 | | | | 10 | | | | 10 | | | | 40 | |
International Equity Funds | | | | | | | | | | | | | | | | | | | | |
Russell Emerging Markets Fund | | | 5 | | | | 5 | | | | 5 | | | | 5 | | | | 1 | |
Russell Global Equity Fund | | | 11 | | | | 11 | | | | 11 | | | | 11 | | | | 5 | |
Russell International Developed Markets Fund | | | 21 | | | | 21 | | | | 21 | | | | 21 | | | | 7 | |
Real Asset Funds | | | | | | | | | | | | | | | | | | | | |
Russell Commodity Strategies Fund | | | 6 | | | | 6 | | | | 6 | | | | 6 | | | | 3 | |
Russell Global Real Estate Securities Fund | | | 5 | | | | 5 | | | | 5 | | | | 5 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | |
| * | Prospectus dated February 29, 2012 |
| 2. | | Significant Accounting Policies |
The Funds’ financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) which require the use of management estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following is a summary of the significant accounting policies consistently followed by each Fund in the preparation of its financial statements.
| | | | |
| | 126 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
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.
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 or liability, including assumptions about risk, (e.g., the risk inherent in a particular valuation technique, such as a pricing model or the risks inherent in the inputs to a particular 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 market prices in non-active markets or prices derived from market data |
| | • | | 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, 2012 were Level 1 for all Funds.
Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the net asset value stated in the financial statements to be different from the net asset value at which shareholders may transact. 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 is required for the Funds.
Each Fund files a U.S. tax return. At April 30, 2012, the Funds had recorded no liabilities for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns. While the statute of limitations remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ending October 31, 2008 through October 31, 2010, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The Funds comply with the authoritative guidance for uncertainty in income taxes which requires management to determine whether a tax position of the Funds is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. Management determined that no accruals need to be made in the financial statements due to uncertain tax positions. Management continually reviews and adjusts its liability for income taxes based on analyses of tax laws and regulations, as well as their interpretations, and other relevant factors.
| | |
| Notes to Financial Statements | | 127 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
Dividends and Distributions to Shareholders
Income dividends, capital gain distributions and return of capital, if any, are recorded on the ex-dividend date. Income dividends are generally declared and paid quarterly. Capital gain distributions are generally declared and paid annually. An additional distribution may be paid by the Funds to avoid imposition of federal income and excise tax on any remaining undistributed capital gains and net investment income.
The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations which may differ from U.S. GAAP. As a result, net investment income and net realized gain (or loss) from investment transactions for a reporting period may differ significantly from distributions during such period. The differences between tax regulations and U.S. GAAP 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 Underlying Funds’ fees and expenses incurred indirectly by the Funds will vary.
Class Allocation
Each of the Funds presented herein may 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 conditions. The separate classes of shares differ principally in the applicable sales charges, distribution fees and shareholder servicing fees. Shareholders of each class bear certain expenses that pertain to that particular class. Realized and unrealized gains (losses), investment income, and expenses with the exception of class level expenses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class.
Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
Market, Credit and Counterparty Risk
In the normal course of business, the Underlying Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to credit risk, the Underlying Funds may also be exposed to counterparty risk or the risk that an institution or other entity with which the Underlying Funds have unsettled or open transactions will default. The potential loss could exceed the value of the relevant assets recorded in the financial statements (the “Assets”). The Assets, which potentially expose the Underlying Funds to credit risk, consist principally of cash due from counterparties and investments. The extent of the Underlying Funds’ exposure to credit and counterparty risks with respect to the Assets approximates their carrying value as recorded in the Underlying Funds’ Statements of Assets and Liabilities.
| | | | |
| | 128 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| 3. | | Investment Transactions |
Securities
During the period ended April 30, 2012, purchases and sales of the Underlying Funds (excluding short-term investments) were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Conservative Strategy Fund | | $ | 69,909,740 | | | $ | 56,846,894 | |
Moderate Strategy Fund | | | 106,919,375 | | | | 88,057,387 | |
Balanced Strategy Fund | | | 225,749,292 | | | | 304,038,932 | |
Growth Strategy Fund | | | 143,965,781 | | | | 271,085,738 | |
Equity Growth Strategy Fund | | | 48,640,504 | | | | 114,048,912 | |
2015 Strategy Fund | | | 9,944,355 | | | | 11,629,927 | |
2020 Strategy Fund | | | 26,462,438 | | | | 56,421,377 | |
2025 Strategy Fund | | | 8,538,304 | | | | 10,799,912 | |
2030 Strategy Fund | | | 24,064,753 | | | | 53,221,214 | |
2035 Strategy Fund | | | 4,174,918 | | | | 5,907,284 | |
2040 Strategy Fund | | | 11,746,676 | | | | 41,841,219 | |
2045 Strategy Fund | | | 4,571,144 | | | | 2,614,973 | |
2050 Strategy Fund | | | 9,871,505 | | | | 3,191,674 | |
2055 Strategy Fund | | | 108,540 | | | | 27,729 | |
In Retirement Fund | | | 7,290,000 | | | | 23,411,228 | |
| 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.
Target Portfolio Series Funds
With respect to the Target Portfolio Funds, the advisory fee of 0.20% and administrative fee of up to 0.05% are based upon the average daily net assets of the Funds and are payable monthly. The following shows the total amount of each of these fees paid by the Funds for the period ended April 30, 2012.
| | | | | | | | |
| | | Advisory | | | Administrative | |
Conservative Strategy Fund | | $ | 696,926 | | | $ | 174,232 | |
Moderate Strategy Fund | | | 1,087,194 | | | | 271,799 | |
Balanced Strategy Fund | | | 4,150,819 | | | | 1,016,899 | |
Growth Strategy Fund | | | 2,628,927 | | | | 655,435 | |
Equity Growth Strategy Fund | | | 1,172,037 | | | | 293,009 | |
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 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 Target Portfolio Funds presented herein for the period ended April 30, 2012, were as follows:
| | | | |
| | | Amount | |
Conservative Strategy Fund | | $ | 626,664 | |
Moderate Strategy Fund | | | 976,631 | |
Balanced Strategy Fund | | | 3,729,020 | |
Growth Strategy Fund | | | 2,361,008 | |
Equity Growth Strategy Fund | | | 1,051,895 | |
Target Date Series Funds
With respect to the Target Date Funds, effective October 1, 2010, the Funds’ Advisory, Administrative and Transfer Agency contracts have been amended to reduce the fees payable under each contract to 0.00% and RIMCo has agreed to assume the
| | |
| Notes to Financial Statements | | 129 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
responsibility of payment for all 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 and extraordinary expenses.
Waivers and Reimbursements
Target Portfolio Funds
For each Fund individually, RFSC contractually waived, until February 29, 2012, its transfer agency fees for Class R1, R2 and R3 Shares. Effective March 1, 2012, RFSC has contractually agreed to waive, until February 28, 2013, 0.15% of its transfer agency fees for Class R1, R2 and R3 Shares. The waiver may not be terminated during the relevant period except with Board approval.
RIMCo has contractually agreed, until February 28, 2013, 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.
As of April 30, 2012, RIMCo and RFSC waived/reimbursed the following expenses:
| | | | | | | | | | | | | | | | |
| | | RIMCo Waiver | | | RFSC Waiver | | | RIMCo / RFSC Reimbursement | | | Total | |
Conservative Strategy Fund | | $ | 586,565 | | | $ | 209,061 | | | $ | 21,460 | | | $ | 817,086 | |
Moderate Strategy Fund | | | 882,441 | | | | 295,095 | | | | 22,874 | | | | 1,200,410 | |
Balanced Strategy Fund | | | 2,996,670 | | | | 967,279 | | | | 29,258 | | | | 3,993,207 | |
Growth Strategy Fund | | | 1,900,629 | | | | 676,083 | | | | 28,501 | | | | 2,605,213 | |
Equity Growth Strategy Fund | | | 916,737 | | | | 314,660 | | | | 25,270 | | | | 1,256,667 | |
Distributor and Shareholder Servicing
Russell Financial Services, Inc. (the “Distributor”), a wholly owned subsidiary of RIMCo, is the distributor for the Investment Company, 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 Investment Company Act. Under this Plan, the Investment Company is authorized to make payments to the Distributor or any selling agents, as defined in the Plan, for sales support services provided, and related expenses incurred which are primarily intended to result in the sale of the Class A, Class C and Class R3 shares subject to the 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 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, 2012, the Distributor retained the following amounts in sales charges:
| | | | |
| Contingent Deferred Sales Charges | | Class A Shares | |
| | | | |
Moderate Strategy Fund | | $ | 105 | |
Balanced Strategy Fund | | | 880 | |
Growth Strategy Fund | | | 154 | |
| | | | |
| | 130 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
For the period ended April 30, 2012, the sales commissions paid to the selling agents for the sale of Class A shares were as follows:
| | | | | | | | |
| | | Aggregate Front- End Sales Charges
on Class A Shares | | | Class A Front-End Sales
Charges Retained by
Distributor | |
| | | | | | | | |
Conservative Strategy Fund | | $ | 340,168 | | | $ | 56,284 | |
Moderate Strategy Fund | | | 525,145 | | | | 88,724 | |
Balanced Strategy Fund | | | 1,756,769 | | | | 299,921 | |
Growth Strategy Fund | | | 1,366,833 | | | | 220,698 | |
Equity Growth Strategy Fund | | | 292,830 | | | | 46,190 | |
2030 Strategy Fund | | | 160 | | | | 21 | |
2040 Strategy Fund | | | 333 | | | | 62 | |
Accrued Fees Payable to Affiliates
Accrued fees payable to affiliates for the period ended April 30, 2012 were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Conservative
Strategy
Fund | | | Moderate
Strategy
Fund | | | Balanced
Strategy
Fund | | | Growth
Strategy
Fund | | | Equity Growth
Strategy
Fund | |
| | | | | | | | | | | | | | | | | | | | |
Advisory fees | | $ | 117,082 | | | $ | 183,917 | | | $ | 697,337 | | | $ | 437,613 | | | $ | 195,585 | |
Administration fees | | | 29,271 | | | | 45,979 | | | | 170,740 | | | | 109,056 | | | | 48,896 | |
Distribution fees | | | 186,673 | | | | 280,748 | | | | 1,150,532 | | | | 699,185 | | | | 300,672 | |
Shareholder servicing fees | | | 95,387 | | | | 142,283 | | | | 483,542 | | | | 312,407 | | | | 144,917 | |
Transfer agent fees | | | 79,346 | | | | 128,121 | | | | 503,928 | | | | 308,874 | | | | 136,466 | |
Trustee fees | | | 3,577 | | | | 6,262 | | | | 26,666 | | | | 18,728 | | | | 8,655 | |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 511,336 | | | $ | 787,310 | | | $ | 3,032,745 | | | $ | 1,885,863 | | | $ | 835,191 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2015 Strategy
Fund | | | 2020 Strategy
Fund | | | 2025 Strategy
Fund | | | 2030 Strategy
Fund | | | 2035 Strategy
Fund | |
Distribution fees | | $ | 2,389 | | | $ | 16,516 | | | $ | 2,835 | | | $ | 12,295 | | | $ | 1,658 | |
Shareholder servicing fees | | | 3,820 | | | | 23,748 | | | | 4,476 | | | | 18,341 | | | | 2,726 | |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 6,209 | | | $ | 40,264 | | | $ | 7,311 | | | $ | 30,636 | | | $ | 4,384 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2040 Strategy
Fund | | | 2045 Strategy
Fund | | | 2050 Strategy
Fund | | | 2055 Strategy
Fund | | | In Retirement
Fund | |
Distribution fees | | $ | 9,203 | | | $ | 759 | | | $ | 754 | | | $ | 86 | | | $ | 5,972 | |
Shareholder servicing fees | | | 12,913 | | | | 1,382 | | | | 1,335 | | | | 327 | | | | 8,444 | |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 22,116 | | | $ | 2,141 | | | $ | 2,089 | | | $ | 413 | | | $ | 14,416 | |
| | | | | | | | | | | | | | | | | | | | |
Board of Trustees
The Russell Fund Complex consists of RIC, which has 38 funds, and Russell Investment Funds (“RIF”), which has 10 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 $75,000 per year; each of its interested Trustees a retainer of $65,000 per year; and each Trustee $6,500 for each regularly scheduled meeting attended in person (effective January 1, 2012, $7,000) and $2,500 (effective January 1, 2012, $3,500) for each special meeting and the Annual 38a-1 meeting attended in person, and 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 regularly scheduled and special meetings by phone instead of receiving the full fee had the member attended in person (except for telephonic meetings called pursuant to the Funds’ valuation and pricing procedures) 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 $15,000 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 $75,000. Ms. Cavanaugh is not compensated by the Russell Fund Complex for her service as Trustee.
| | |
| Notes to Financial Statements | | 131 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (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 which the Fund controls, is controlled by or is under common control with. Transactions during the period ended April 30, 2012 with Underlying Funds which are, or were, an affiliated company are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | Purchases Cost | | | Sales Cost | | | Realized Gain
(Loss) | | | Income
Distributions | | | Capital Gains
Distributions | |
Conservative Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 23,396 | | | $ | 5,725 | | | $ | 4,977 | | | $ | 837 | | | $ | 129 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 21,627 | | | | 1,944 | | | | 3,314 | | | | 613 | | | | 135 | | | | — | |
Russell Global Opportunistic Credit Fund | | | 16,204 | | | | 3,106 | | | | 942 | | | | (1 | ) | | | 883 | | | | — | |
Russell Investment Grade Bond Fund | | | 140,193 | | | | 10,571 | | | | 9,228 | | | | 27 | | | | 2,729 | | | | 524 | |
Russell Short Duration Bond Fund | | | 129,159 | | | | 8,229 | | | | 4,361 | | | | (14 | ) | | | 1,194 | | | | — | |
Russell Strategic Bond Fund | | | 273,410 | | | | 19,521 | | | | 11,806 | | | | (2 | ) | | | 6,625 | | | | — | |
Russell Global Equity Fund | | | 36,094 | | | | 6,784 | | | | 7,380 | | | | 191 | | | | 384 | | | | — | |
Russell International Developed Markets Fund | | | 35,990 | | | | 7,028 | | | | 6,997 | | | | (302 | ) | | | 687 | | | | — | |
Russell Commodity Strategies Fund | | | 14,418 | | | | 3,440 | | | | 1,563 | | | | (93 | ) | | | 605 | | | | 1 | |
Russell Global Infrastructure Fund | | | 14,470 | | | | 1,731 | | | | 2,109 | | | | 57 | | | | 120 | | | | 5 | |
Russell Global Real Estate Securities Fund | | | 14,511 | | | | 1,831 | | | | 2,676 | | | | 181 | | | | 142 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 719,472 | | | $ | 69,910 | | | $ | 55,353 | | | $ | 1,494 | | | $ | 13,633 | | | $ | 530 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Moderate Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 61,678 | | | $ | 7,698 | | | $ | 8,845 | | | $ | 151 | | | $ | 335 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 67,665 | | | | 2,011 | | | | 7,505 | | | | 316 | | | | 416 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 22,449 | | | | 1,273 | | | | 3,177 | | | | 80 | | | | 101 | | | | — | |
Russell Global Opportunistic Credit Fund | | | 24,974 | | | | 4,297 | | | | 1,358 | | | | 15 | | | | 1,350 | | | | — | |
Russell Investment Grade Bond Fund | | | 217,579 | | | | 19,334 | | | | 18,089 | | | | 219 | | | | 4,211 | | | | 802 | |
Russell Strategic Bond Fund | | | 408,124 | | | | 34,316 | | | | 17,423 | | | | 47 | | | | 9,716 | | | | — | |
Russell Emerging Markets Fund | | | 33,672 | | | | 5,726 | | | | 4,928 | | | | (492 | ) | | | 547 | | | | 1,273 | |
Russell Global Equity Fund | | | 89,752 | | | | 9,619 | | | | 10,517 | | | | (513 | ) | | | 922 | | | | — | |
Russell International Developed Markets Fund | | | 100,160 | | | | 12,030 | | | | 10,128 | | | | (818 | ) | | | 1,851 | | | | — | |
Russell Commodity Strategies Fund | | | 33,514 | | | | 6,385 | | | | 1,358 | | | | (73 | ) | | | 1,353 | | | | 1 | |
Russell Global Infrastructure Fund | | | 34,082 | | | | 1,727 | | | | 2,247 | | | | 25 | | | | 277 | | | | 11 | |
Russell Global Real Estate Securities Fund | | | 34,607 | | | | 2,503 | | | | 3,252 | | | | 273 | | | | 336 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,128,256 | | | $ | 106,919 | | | $ | 88,827 | | | $ | (770 | ) | | $ | 21,415 | | | $ | 2,087 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balanced Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 460,462 | | | $ | 33,978 | | | $ | 58,467 | | | $ | (712 | ) | | $ | 2,585 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 386,649 | | | | 3,578 | | | | 44,125 | | | | 1,527 | | | | 2,406 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 170,810 | | | | 1,930 | | | | 20,992 | | | | (1,414 | ) | | | 783 | | | | — | |
Russell Global Opportunistic Credit Fund | | | 137,754 | | | | 17,836 | | | | 7,924 | | | | 159 | | | | 7,819 | | | | — | |
Russell Strategic Bond Fund | | | 1,459,489 | | | | 86,220 | | | | 96,471 | | | | 1,216 | | | | 35,966 | | | | — | |
Russell Emerging Markets Fund | | | 168,805 | | | | 12,397 | | | | 10,237 | | | | (828 | ) | | | 2,737 | | | | 6,373 | |
Russell Global Equity Fund | | | 425,419 | | | | 19,922 | | | | 31,515 | | | | (710 | ) | | | 4,390 | | | | — | |
Russell International Developed Markets Fund | | | 631,359 | | | | 24,900 | | | | 18,975 | | | | (986 | ) | | | 11,530 | | | | — | |
Russell Commodity Strategies Fund | | | 166,259 | | | | 20,692 | | | | 962 | | | | (38 | ) | | | 6,747 | | | | 3 | |
Russell Global Infrastructure Fund | | | 129,485 | | | | 1,635 | | | | 6,586 | | | | 260 | | | | 1,062 | | | | 44 | |
Russell Global Real Estate Securities Fund | | | 131,234 | | | | 2,661 | | | | 7,602 | | | | 1,709 | | | | 1,284 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 4,267,725 | | | $ | 225,749 | | | $ | 303,856 | | | $ | 183 | | | $ | 77,309 | | | $ | 6,420 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Growth Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 348,493 | | | $ | 27,050 | | | $ | 43,641 | | | $ | (386 | ) | | $ | 1,948 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 295,167 | | | | 1,852 | | | | 38,270 | | | | 2,721 | | | | 1,853 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 160,988 | | | | 1,636 | | | | 25,275 | | | | (1,838 | ) | | | 742 | | | | — | |
Russell Global Opportunistic Credit Fund | | | 114,035 | | | | 15,631 | | | | 9,788 | | | | 280 | | | | 6,512 | | | | — | |
Russell Strategic Bond Fund | | | 366,609 | | | | 28,448 | | | | 52,617 | | | | 960 | | | | 9,512 | | | | — | |
Russell Emerging Markets Fund | | | 133,283 | | | | 10,059 | | | | 10,499 | | | | (941 | ) | | | 2,196 | | | | 5,113 | |
Russell Global Equity Fund | | | 373,276 | | | | 18,811 | | | | 43,567 | | | | (1,980 | ) | | | 3,933 | | | | — | |
Russell International Developed Markets Fund | | | 506,570 | | | | 18,863 | | | | 36,072 | | | | (8,039 | ) | | | 9,486 | | | | — | |
Russell Commodity Strategies Fund | | | 156,961 | | | | 19,012 | | | | 1,602 | | | | (71 | ) | | | 6,421 | | | | 3 | |
Russell Global Infrastructure Fund | | | 107,913 | | | | 979 | | | | 7,413 | | | | 269 | | | | 895 | | | | 37 | |
Russell Global Real Estate Securities Fund | | | 108,415 | | | | 1,625 | | | | 9,935 | | | | 1,432 | | | | 1,081 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 2,671,710 | | | $ | 143,966 | | | $ | 278,679 | | | $ | (7,593 | ) | | $ | 44,579 | | | $ | 5,153 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | 132 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | Purchases Cost | | | Sales Cost | | | Realized Gain
(Loss) | | | Income
Distributions | | | Capital Gains
Distributions | |
Equity Growth Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 179,339 | | | $ | 2,540 | | | $ | 20,926 | | | $ | 1,634 | | | $ | 1,068 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 167,438 | | | | 2,125 | | | | 21,014 | | | | 1,230 | | | | 1,047 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 83,745 | | | | 1,584 | | | | 14,056 | | | | (1,295 | ) | | | 384 | | | | — | |
Russell Global Opportunistic Credit Fund | | | 59,593 | | | | 6,295 | | | | 6,330 | | | | 215 | | | | 3,546 | | | | — | |
Russell Emerging Markets Fund | | | 83,304 | | | | 7,121 | | | | 9,309 | | | | (485 | ) | | | 1,374 | | | | 3,199 | |
Russell Global Equity Fund | | | 166,589 | | | | 3,979 | | | | 14,709 | | | | (1,745 | ) | | | 1,748 | | | | — | |
Russell International Developed Markets Fund | | | 273,665 | | | | 11,833 | | | | 22,176 | | | | (6,084 | ) | | | 5,118 | | | | — | |
Russell Commodity Strategies Fund | | | 71,676 | | | | 10,518 | | | | 1,713 | | | | (62 | ) | | | 2,827 | | | | 1 | |
Russell Global Infrastructure Fund | | | 48,198 | | | | 1,463 | | | | 3,655 | | | | 118 | | | | 398 | | | | 17 | |
Russell Global Real Estate Securities Fund | | | 60,475 | | | | 1,183 | | | | 6,249 | | | | 386 | | | | 605 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,194,022 | | | $ | 48,641 | | | $ | 120,137 | | | $ | (6,088 | ) | | $ | 18,115 | | | $ | 3,217 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2015 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 3,796 | | | $ | 424 | | | $ | 992 | | | $ | 91 | | | $ | 24 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 3,860 | | | | 367 | | | | 871 | | | | 134 | | | | 25 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 1,547 | | | | 190 | | | | 533 | | | | 59 | | | | 8 | | | | — | |
Russell Investment Grade Bond Fund | | | 11,537 | | | | 1,879 | | | | 1,925 | | | | 5 | | | | 228 | | | | 44 | |
Russell Short Duration Bond Fund | | | 1,153 | | | | 1,279 | | | | 144 | | | | 1 | | | | 8 | | | | — | |
Russell Strategic Bond Fund | | | 23,074 | | | | 3,602 | | | | 3,864 | | | | 20 | | | | 580 | | | | — | |
Russell Emerging Markets Fund | | | 1,039 | | | | 236 | | | | 393 | | | | (39 | ) | | | 20 | | | | 47 | |
Russell Global Equity Fund | | | 3,397 | | | | 498 | | | | 715 | | | | 9 | | | | 38 | | | | — | |
Russell International Developed Markets Fund | | | 4,897 | | | | 872 | | | | 1,330 | | | | (113 | ) | | | 103 | | | | — | |
Russell Commodity Strategies Fund | | | 1,675 | | | | 419 | | | | 320 | | | | (36 | ) | | | 76 | | | | — | |
Russell Global Real Estate Securities Fund | | | 1,673 | | | | 178 | | | | 421 | | | | (9 | ) | | | 17 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 57,648 | | | $ | 9,944 | | | $ | 11,508 | | | $ | 122 | | | $ | 1,127 | | | $ | 91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2020 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 22,541 | | | $ | 802 | | | $ | 7,655 | | | $ | (379 | ) | | $ | 148 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 22,541 | | | | 735 | | | | 7,641 | | | | (172 | ) | | | 154 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 8,516 | | | | 409 | | | | 2,741 | | | | 29 | | | | 43 | | | | — | |
Russell Investment Grade Bond Fund | | | 30,055 | | | | 8,094 | | | | 4,997 | | | | 83 | | | | 534 | | | | 95 | |
Russell Strategic Bond Fund | | | 100,184 | | | | 9,781 | | | | 17,807 | | | | 255 | | | | 2,566 | | | | — | |
Russell Emerging Markets Fund | | | 6,011 | | | | 871 | | | | 1,926 | | | | (226 | ) | | | 111 | | | | 260 | |
Russell Global Equity Fund | | | 17,031 | | | | 1,173 | | | | 4,363 | | | | (232 | ) | | | 196 | | | | — | |
Russell International Developed Markets Fund | | | 27,551 | | | | 2,631 | | | | 8,061 | | | | (1,419 | ) | | | 576 | | | | — | |
Russell Commodity Strategies Fund | | | 8,515 | | | | 1,454 | | | | 1,349 | | | | (57 | ) | | | 387 | | | | — | |
Russell Global Real Estate Securities Fund | | | 7,514 | | | | 512 | | | | 1,884 | | | | 115 | | | | 77 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 250,459 | | | $ | 26,462 | | | $ | 58,424 | | | $ | (2,003 | ) | | $ | 4,792 | | | $ | 355 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2025 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 6,425 | | | $ | 543 | | | $ | 1,493 | | | $ | 83 | | | $ | 41 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 6,399 | | | | 469 | | | | 1,357 | | | | 119 | | | | 42 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 2,156 | | | | 198 | | | | 576 | | | | 56 | | | | 11 | | | | — | |
Russell Strategic Bond Fund | | | 20,538 | | | | 4,672 | | | | 3,385 | | | | 23 | | | | 491 | | | | — | |
Russell Emerging Markets Fund | | | 1,606 | | | | 276 | | | | 399 | | | | (41 | ) | | | 29 | | | | 68 | |
Russell Global Equity Fund | | | 4,266 | | | | 514 | | | | 893 | | | | (15 | ) | | | 48 | | | | — | |
Russell International Developed Markets Fund | | | 7,504 | | | | 1,163 | | | | 1,824 | | | | (187 | ) | | | 155 | | | | — | |
Russell Commodity Strategies Fund | | | 2,160 | | | | 517 | | | | 468 | | | | (44 | ) | | | 100 | | | | — | |
Russell Global Real Estate Securities Fund | | | 1,607 | | | | 186 | | | | 410 | | | | 1 | | | | 16 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 52,661 | | | $ | 8,538 | | | $ | 10,805 | | | $ | (5 | ) | | $ | 933 | | | $ | 68 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2030 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 30,234 | | | $ | 867 | | | $ | 10,499 | | | $ | (752 | ) | | $ | 196 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 28,490 | | | | 718 | | | | 10,005 | | | | (397 | ) | | | 193 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 11,241 | | | | 498 | | | | 4,093 | | | | (14 | ) | | | 57 | | | | — | |
Russell Strategic Bond Fund | | | 42,638 | | | | 15,355 | | | | 9,182 | | | | 117 | | | | 925 | | | | — | |
Russell Emerging Markets Fund | | | 7,559 | | | | 934 | | | | 2,610 | | | | (340 | ) | | | 141 | | | | 328 | |
Russell Global Equity Fund | | | 18,993 | | | | 925 | | | | 5,543 | | | | (540 | ) | | | 222 | | | | — | |
Russell International Developed Markets Fund | | | 35,855 | | | | 2,625 | | | | 10,515 | | | | (1,954 | ) | | | 747 | | | | — | |
Russell Commodity Strategies Fund | | | 11,241 | | | | 1,702 | | | | 1,939 | | | | (131 | ) | | | 505 | | | | — | |
Russell Global Real Estate Securities Fund | | | 7,558 | | | | 441 | | | | 2,626 | | | | 220 | | | | 79 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 193,809 | | | $ | 24,065 | | | $ | 57,012 | | | $ | (3,791 | ) | | $ | 3,065 | | | $ | 328 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 133 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | Purchases Cost | | | Sales Cost | | | Realized Gain
(Loss) | | | Income
Distributions | | | Capital Gains
Distributions | |
2035 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 4,299 | | | $ | 562 | | | $ | 997 | | | $ | 96 | | | $ | 26 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 4,175 | | | | 469 | | | | 946 | | | | 88 | | | | 26 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 1,552 | | | | 240 | | | | 430 | | | | 41 | | | | 7 | | | | — | |
Russell Strategic Bond Fund | | | 2,388 | | | | 599 | | | | 717 | | | | 5 | | | | 59 | | | | — | |
Russell Emerging Markets Fund | | | 1,075 | | | | 246 | | | | 297 | | | | (21 | ) | | | 19 | | | | 43 | |
Russell Global Equity Fund | | | 2,746 | | | | 474 | | | | 617 | | | | 6 | | | | 30 | | | | — | |
Russell International Developed Markets Fund | | | 5,016 | | | | 995 | | | | 1,152 | | | | (73 | ) | | | 97 | | | | — | |
Russell Commodity Strategies Fund | | | 1,434 | | | | 419 | | | | 324 | | | | (24 | ) | | | 61 | | | | — | |
Russell Global Real Estate Securities Fund | | | 1,195 | | | | 171 | | | | 310 | | | | (1 | ) | | | 12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 23,880 | | | $ | 4,175 | | | $ | 5,790 | | | $ | 117 | | | $ | 337 | | | $ | 43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2040 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 25,576 | | | $ | 876 | | | $ | 8,313 | | | $ | (572 | ) | | $ | 157 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 24,866 | | | | 766 | | | | 7,953 | | | | (265 | ) | | | 160 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 9,236 | | | | 456 | | | | 3,234 | | | | (26 | ) | | | 44 | | | | — | |
Russell Strategic Bond Fund | | | 14,209 | | | | 2,666 | | | | 4,821 | | | | 73 | | | | 360 | | | | — | |
Russell Emerging Markets Fund | | | 6,394 | | | | 867 | | | | 2,260 | | | | (265 | ) | | | 111 | | | | 258 | |
Russell Global Equity Fund | | | 16,341 | | | | 958 | | | | 4,584 | | | | (390 | ) | | | 178 | | | | — | |
Russell International Developed Markets Fund | | | 29,839 | | | | 2,834 | | | | 9,034 | | | | (1,448 | ) | | | 584 | | | | — | |
Russell Commodity Strategies Fund | | | 8,525 | | | | 1,770 | | | | 2,169 | | | | (78 | ) | | | 366 | | | | — | |
Russell Global Real Estate Securities Fund | | | 7,105 | | | | 554 | | | | 2,469 | | | | (25 | ) | | | 73 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 142,091 | | | $ | 11,747 | | | $ | 44,837 | | | $ | (2,996 | ) | | $ | 2,033 | | | $ | 258 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2045 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 2,267 | | | $ | 709 | | | $ | 455 | | | $ | 7 | | | $ | 12 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 2,205 | | | | 677 | | | | 445 | | | | 12 | | | | 13 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 818 | | | | 254 | | | | 175 | | | | 1 | | | | 3 | | | | — | |
Russell Strategic Bond Fund | | | 1,261 | | | | 596 | | | | 374 | | | | 1 | | | | 27 | | | | — | |
Russell Emerging Markets Fund | | | 569 | | | | 238 | | | | 133 | | | | (5 | ) | | | 8 | | | | 19 | |
Russell Global Equity Fund | | | 1,449 | | | | 513 | | | | 269 | | | | (5 | ) | | | 13 | | | | — | |
Russell International Developed Markets Fund | | | 2,646 | | | | 1,007 | | | | 506 | | | | (31 | ) | | | 42 | | | | — | |
Russell Commodity Strategies Fund | | | 760 | | | | 371 | | | | 159 | | | | (12 | ) | | | 26 | | | | — | |
Russell Global Real Estate Securities Fund | | | 631 | | | | 206 | | | | 133 | | | | (2 | ) | | | 7 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 12,606 | | | $ | 4,571 | | | $ | 2,649 | | | $ | (34 | ) | | $ | 151 | | | $ | 19 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2050 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 3,733 | | | $ | 1,624 | | | $ | 561 | | | $ | 10 | | | $ | 17 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 3,629 | | | | 1,553 | | | | 555 | | | | 9 | | | | 17 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 1,348 | | | | 584 | | | | 199 | | | | 6 | | | | 4 | | | | — | |
Russell Strategic Bond Fund | | | 2,075 | | | | 1,168 | | | | 485 | | | | 2 | | | | 36 | | | | — | |
Russell Emerging Markets Fund | | | 937 | | | | 498 | | | | 160 | | | | (2 | ) | | | 10 | | | | 24 | |
Russell Global Equity Fund | | | 2,383 | | | | 1,113 | | | | 311 | | | | (1 | ) | | | 16 | | | | — | |
Russell International Developed Markets Fund | | | 4,352 | | | | 2,128 | | | | 565 | | | | (8 | ) | | | 53 | | | | — | |
Russell Commodity Strategies Fund | | | 1,254 | | | | 695 | | | | 153 | | | | (10 | ) | | | 34 | | | | — | |
Russell Global Real Estate Securities Fund | | | 1,045 | | | | 509 | | | | 188 | | | | 9 | | | | 10 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 20,756 | | | $ | 9,872 | | | $ | 3,177 | | | $ | 15 | | | $ | 197 | | | $ | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2055 Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 205 | | | $ | 9 | | | $ | 4 | | | $ | — | | | $ | 1 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 200 | | | | 8 | | | | 5 | | | | — | | | | 1 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 74 | | | | 3 | | | | 3 | | | | — | | | | — | | | | — | |
Russell Strategic Bond Fund | | | 114 | | | | 18 | | | | 8 | | | | — | | | | 3 | | | | — | |
Russell Emerging Markets Fund | | | 51 | | | | 8 | | | | 2 | | | | — | | | | 1 | | | | 2 | |
Russell Global Equity Fund | | | 131 | | | | 12 | | | | — | | | | — | | | | 1 | | | | — | |
Russell International Developed Markets Fund | | | 239 | | | | 31 | | | | 3 | | | | (1 | ) | | | 4 | | | | — | |
Russell Commodity Strategies Fund | | | 69 | | | | 16 | | | | 1 | | | | — | | | | 2 | | | | — | |
Russell Global Real Estate Securities Fund | | | 57 | | | | 4 | | | | 3 | | | | — | | | | 1 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,140 | | | $ | 109 | | | $ | 29 | | | $ | (1 | ) | | $ | 14 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | 134 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Market Value | | | Purchases Cost | | | Sales Cost | | | Realized Gain
(Loss) | | | Income
Distributions | | | Capital Gains
Distributions | |
In Retirement Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Russell U.S. Core Equity Fund | | $ | 4,160 | | | $ | 289 | | | $ | 1,440 | | | $ | 141 | | | $ | 27 | | | $ | — | |
Russell U.S. Quantitative Equity Fund | | | 4,469 | | | | 273 | | | | 1,506 | | | | 193 | | | | 30 | | | | — | |
Russell U.S. Small Cap Equity Fund | | | 1,387 | | | | 122 | | | | 532 | | | | 58 | | | | 7 | | | | — | |
Russell Investment Grade Bond Fund | | | 15,409 | | | | 1,504 | | | | 4,246 | | | | 86 | | | | 326 | | | | 62 | |
Russell Short Duration Bond Fund | | | 6,163 | | | | 483 | | | | 1,627 | | | | — | | | | 63 | | | | — | |
Russell Strategic Bond Fund | | | 30,817 | | | | 2,827 | | | | 8,591 | | | | 150 | | | | 831 | | | | — | |
Russell Emerging Markets Fund | | | 925 | | | | 158 | | | | 360 | | | | (8 | ) | | | 17 | | | | 41 | |
Russell Global Equity Fund | | | 4,314 | | | | 470 | | | | 1,483 | | | | 19 | | | | 51 | | | | — | |
Russell International Developed Markets Fund | | | 5,393 | | | | 671 | | | | 1,920 | | | | (185 | ) | | | 114 | | | | — | |
Russell Commodity Strategies Fund | | | 2,003 | | | | 309 | | | | 509 | | | | (45 | ) | | | 93 | | | | — | |
Russell Global Real Estate Securities Fund | | | 2,003 | | | | 184 | | | | 756 | | | | 32 | | | | 21 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 77,043 | | | $ | 7,290 | | | $ | 22,970 | | | $ | 441 | | | $ | 1,580 | | | $ | 103 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
5. Federal Income Taxes
At April 30, 2012, 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:
| | | | | | | | | | | | | | | | | | | | |
| | | 10/31/2016 | | | 10/31/2017 | | | 10/31/2018 | | | 10/31/2019 | | | Totals | |
| | | | | | | | | | | | | | | | | | | | |
Conservative Strategy Fund | | $ | — | | | $ | 5,309,477 | | | $ | 450,050 | | | $ | — | | | $ | 5,759,527 | |
Moderate Strategy Fund | | | — | | | | 21,426,114 | | | | 31,180,936 | | | | — | | | | 52,607,050 | |
Balanced Strategy Fund | | | — | | | | 172,806,304 | | | | 211,037,263 | | | | 17,026,526 | | | | 400,870,093 | |
Growth Strategy Fund | | | — | | | | 155,925,848 | | | | 268,001,981 | | | | 25,244,054 | | | | 449,171,883 | |
Equity Growth Strategy Fund | | | — | | | | 103,749,875 | | | | 171,652,158 | | | | 19,352,964 | | | | 294,754,997 | |
2020 Strategy Fund | | | 877,647 | | | | 514,172 | | | | 3,417,191 | | | | 273,277 | | | | 5,082,287 | |
2030 Strategy Fund | | | 2,808,872 | | | | 363,900 | | | | 4,196,075 | | | | 1,098,253 | | | | 8,467,100 | |
2040 Strategy Fund | | | 1,932,184 | | | | 213,749 | | | | 3,055,821 | | | | 629,168 | | | | 5,830,922 | |
In Retirement Fund | | | — | | | | — | | | | 926,944 | | | | — | | | | 926,944 | |
Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
At April 30, 2012, the cost of investments and net unrealized appreciation (depreciation) tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | Conservative Strategy
Fund | | | Moderate Strategy
Fund | | | Balanced Strategy
Fund | | | Growth Strategy
Fund | | | Equity
Growth Strategy
Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 665,880,776 | | | $ | 1,039,826,357 | | | $ | 3,972,120,449 | | | $ | 2,505,097,313 | | | $ | 1,158,907,296 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 54,153,757 | | | $ | 89,830,797 | | | $ | 341,499,840 | | | $ | 214,608,859 | | | $ | 54,186,036 | |
Unrealized Depreciation | | | (562,534 | ) | | | (1,401,486 | ) | | | (45,895,598 | ) | | | (47,996,646 | ) | | | (19,070,980 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 53,591,223 | | | $ | 88,429,311 | | | $ | 295,604,242 | | | $ | 166,612,213 | | | $ | 35,115,056 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 2015 Strategy
Fund | | | 2020 Strategy
Fund | | | 2025 Strategy
Fund | | | 2030 Strategy
Fund | | | 2035 Strategy
Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 52,069,486 | | | $ | 219,095,873 | | | $ | 46,139,759 | | | $ | 164,071,413 | | | $ | 20,213,090 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 5,662,242 | | | $ | 31,763,071 | | | $ | 6,624,573 | | | $ | 30,263,473 | | | $ | 3,736,360 | |
Unrealized Depreciation | | | (83,857 | ) | | | (400,235 | ) | | | (103,424 | ) | | | (525,667 | ) | | | (69,656 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 5,578,385 | | | $ | 31,362,836 | | | $ | 6,521,149 | | | $ | 29,737,806 | | | $ | 3,666,704 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 135 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 2040 Strategy
Fund | | | 2045 Strategy
Fund | | | 2050 Strategy
Fund | | | 2055 Strategy
Fund | | | In Retirement
Fund | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Investments | | $ | 116,782,529 | | | $ | 10,666,538 | | | $ | 17,013,013 | | | $ | 1,065,530 | | | $ | 67,252,352 | |
| | | | | | | | | | | | | | | | | | | | |
Unrealized Appreciation | | $ | 25,664,305 | | | $ | 1,967,362 | | | $ | 3,793,317 | | | $ | 80,620 | | | $ | 9,873,662 | |
Unrealized Depreciation | | | (355,419 | ) | | | (27,542 | ) | | | (50,353 | ) | | | (6,387 | ) | | | (83,482 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Unrealized Appreciation (Depreciation) | | $ | 25,308,886 | | | $ | 1,939,820 | | | $ | 3,742,964 | | | $ | 74,233 | | | $ | 9,790,180 | |
| | | | | | | | | | | | | | | | | | | | |
| 6. | | Fund Share Transactions (amounts in thousands) |
Share transactions for the periods ended April 30, 2012 and October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Conservative Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,934 | | | $ | 20,475 | | | | 3,568 | | | $ | 37,644 | |
Proceeds from reinvestment of distributions | | | 180 | | | | 1,885 | | | | 316 | | | | 3,296 | |
Payments for shares redeemed | | | (1,197 | ) | | | (12,691 | ) | | | (3,079 | ) | | | (32,644 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 917 | | | | 9,669 | | | | 805 | | | | 8,296 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,579 | | | | 37,661 | | | | 6,471 | | | | 67,991 | |
Proceeds from reinvestment of distributions | | | 264 | | | | 2,727 | | | | 465 | | | | 4,810 | |
Payments for shares redeemed | | | (2,445 | ) | | | (25,708 | ) | | | (4,952 | ) | | | (51,997 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,398 | | | | 14,680 | | | | 1,984 | | | | 20,804 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 993 | | | | 10,544 | | | | 1,770 | | | | 18,817 | |
Proceeds from reinvestment of distributions | | | 71 | | | | 740 | | | | 257 | | | | 2,679 | |
Payments for shares redeemed | | | (735 | ) | | | (7,834 | ) | | | (6,344 | ) | | | (67,852 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 329 | | | | 3,450 | | | | (4,317 | ) | | | (46,356 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 993 | | | | 10,631 | | | | 2,356 | | | | 25,268 | |
Proceeds from reinvestment of distributions | | | 56 | | | | 584 | | | | 79 | | | | 825 | |
Payments for shares redeemed | | | (498 | ) | | | (5,306 | ) | | | (1,352 | ) | | | (14,474 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 551 | | | | 5,909 | | | | 1,083 | | | | 11,619 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,129 | | | | 11,927 | | | | 4,100 | | | | 43,838 | |
Proceeds from reinvestment of distributions | | | 78 | | | | 818 | | | | 67 | | | | 701 | |
Payments for shares redeemed | | | (891 | ) | | | (9,504 | ) | | | (1,133 | ) | | | (12,021 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 316 | | | | 3,241 | | | | 3,034 | | | | 32,518 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,053 | | | | 11,233 | | | | 3,490 | | | | 37,179 | |
Proceeds from reinvestment of distributions | | | 269 | | | | 2,825 | | | | 681 | | | | 7,132 | |
Payments for shares redeemed | | | (3,712 | ) | | | (39,436 | ) | | | (6,316 | ) | | | (67,226 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,390 | ) | | | (25,378 | ) | | | (2,145 | ) | | | (22,915 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,616 | | | | 27,845 | | | | 5,717 | | | | 60,582 | |
Proceeds from reinvestment of distributions | | | 158 | | | | 1,655 | | | | 314 | | | | 3,292 | |
Payments for shares redeemed | | | (2,627 | ) | | | (28,029 | ) | | | (5,990 | ) | | | (63,757 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 147 | | | | 1,471 | | | | 41 | | | | 117 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 1,268 | | | $ | 13,042 | | | | 485 | | | $ | 4,083 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 136 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Moderate Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,618 | | | $ | 27,794 | | | | 3,853 | | | $ | 41,208 | |
Proceeds from reinvestment of distributions | | | 329 | | | | 3,406 | | | | 655 | | | | 6,858 | |
Payments for shares redeemed | | | (1,865 | ) | | | (19,751 | ) | | | (5,429 | ) | | | (58,045 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,082 | | | | 11,449 | | | | (921 | ) | | | (9,979 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,834 | | | | 40,427 | | | | 8,017 | | | | 85,034 | |
Proceeds from reinvestment of distributions | | | 403 | | | | 4,120 | | | | 702 | | | | 7,321 | |
Payments for shares redeemed | | | (3,178 | ) | | | (33,469 | ) | | | (6,610 | ) | | | (69,983 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,059 | | | | 11,078 | | | | 2,109 | | | | 22,372 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,656 | | | | 27,792 | | | | 2,098 | | | | 22,473 | |
Proceeds from reinvestment of distributions | | | 139 | | | | 1,443 | | | | 446 | | | | 4,672 | |
Payments for shares redeemed | | | (1,142 | ) | | | (12,208 | ) | | | (10,186 | ) | | | (110,154 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,653 | | | | 17,027 | | | | (7,642 | ) | | | (83,009 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,209 | | | | 12,871 | | | | 2,257 | | | | 24,181 | |
Proceeds from reinvestment of distributions | | | 87 | | | | 912 | | | | 123 | | | | 1,294 | |
Payments for shares redeemed | | | (636 | ) | | | (6,824 | ) | | | (843 | ) | | | (8,921 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 660 | | | | 6,959 | | | | 1,537 | | | | 16,554 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,397 | | | | 14,729 | | | | 6,503 | | | | 70,514 | |
Proceeds from reinvestment of distributions | | | 118 | | | | 1,228 | | | | 83 | | | | 875 | |
Payments for shares redeemed | | | (1,147 | ) | | | (12,324 | ) | | | (1,502 | ) | | | (15,984 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 368 | | | | 3,633 | | | | 5,084 | | | | 55,405 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,477 | | | | 15,814 | | | | 3,116 | | | | 33,395 | |
Proceeds from reinvestment of distributions | | | 381 | | | | 3,949 | | | | 909 | | | | 9,570 | |
Payments for shares redeemed | | | (4,596 | ) | | | (48,509 | ) | | | (7,368 | ) | | | (78,813 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,738 | ) | | | (28,746 | ) | | | (3,343 | ) | | | (35,848 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,112 | | | | 33,267 | | | | 11,075 | | | | 117,814 | |
Proceeds from reinvestment of distributions | | | 261 | | | | 2,704 | | | | 454 | | | | 4,777 | |
Payments for shares redeemed | | | (3,817 | ) | | | (40,736 | ) | | | (8,829 | ) | | | (94,515 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (444 | ) | | | (4,765 | ) | | | 2,700 | | | | 28,076 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 1,640 | | | $ | 16,635 | | | | (476 | ) | | $ | (6,429 | ) |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 137 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Balanced Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 6,643 | | | $ | 68,654 | | | | 16,520 | | | $ | 173,437 | |
Proceeds from reinvestment of distributions | | | 1,687 | | | | 16,797 | | | | 2,791 | | | | 28,826 | |
Payments for shares redeemed | | | (9,392 | ) | | | (96,883 | ) | | | (21,546 | ) | | | (225,371 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,062 | ) | | | (11,432 | ) | | | (2,235 | ) | | | (23,108 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 9,893 | | | | 101,497 | | | | 23,056 | | | | 240,138 | |
Proceeds from reinvestment of distributions | | | 1,696 | | | | 16,619 | | | | 2,671 | | | | 27,459 | |
Payments for shares redeemed | | | (12,875 | ) | | | (131,596 | ) | | | (28,273 | ) | | | (293,836 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,286 | ) | | | (13,480 | ) | | | (2,546 | ) | | | (26,239 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,785 | | | | 28,304 | | | | 5,004 | | | | 52,771 | |
Proceeds from reinvestment of distributions | | | 275 | | | | 2,752 | | | | 1,177 | | | | 12,182 | |
Payments for shares redeemed | | | (3,559 | ) | | | (37,196 | ) | | | (40,626 | ) | | | (435,394 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (499 | ) | | | (6,140 | ) | | | (34,445 | ) | | | (370,441 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 5,447 | | | | 56,563 | | | | 11,854 | | | | 126,370 | |
Proceeds from reinvestment of distributions | | | 400 | | | | 4,029 | | | | 428 | | | | 4,455 | |
Payments for shares redeemed | | | (2,039 | ) | | | (21,326 | ) | | | (2,984 | ) | | | (31,230 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 3,808 | | | | 39,266 | | | | 9,298 | | | | 99,595 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,878 | | | | 29,537 | | | | 25,631 | | | | 275,253 | |
Proceeds from reinvestment of distributions | | | 447 | | | | 4,458 | | | | 252 | | | | 2,604 | |
Payments for shares redeemed | | | (3,219 | ) | | | (33,486 | ) | | | (4,412 | ) | | | (45,702 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 106 | | | | 509 | | | | 21,471 | | | | 232,155 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,584 | | | | 26,921 | | | | 6,379 | | | | 67,111 | |
Proceeds from reinvestment of distributions | | | 1,046 | | | | 10,435 | | | | 2,121 | | | | 21,968 | |
Payments for shares redeemed | | | (13,324 | ) | | | (136,738 | ) | | | (21,400 | ) | | | (224,848 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (9,694 | ) | | | (99,382 | ) | | | (12,900 | ) | | | (135,769 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 8,369 | | | | 87,137 | | | | 17,511 | | | | 184,752 | |
Proceeds from reinvestment of distributions | | | 869 | | | | 8,742 | | | | 1,530 | | | | 15,924 | |
Payments for shares redeemed | | | (8,701 | ) | | | (89,844 | ) | | | (21,768 | ) | | | (229,776 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 537 | | | | 6,035 | | | | (2,727 | ) | | | (29,100 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (8,090 | ) | | $ | (84,624 | ) | | | (24,084 | ) | | $ | (252,907 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | 138 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Growth Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 4,128 | | | $ | 40,192 | | | | 9,833 | | | $ | 97,876 | |
Proceeds from reinvestment of distributions | | | 1,129 | | | | 10,438 | | | | 1,572 | | | | 15,511 | |
Payments for shares redeemed | | | (7,409 | ) | | | (71,900 | ) | | | (16,467 | ) | | | (163,300 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,152 | ) | | | (21,270 | ) | | | (5,062 | ) | | | (49,913 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 4,899 | | | | 46,790 | | | | 12,921 | | | | 127,473 | |
Proceeds from reinvestment of distributions | | | 945 | | | | 8,505 | | | | 1,387 | | | | 13,466 | |
Payments for shares redeemed | | | (9,392 | ) | | | (89,709 | ) | | | (19,217 | ) | | | (188,538 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3,548 | ) | | | (34,414 | ) | | | (4,909 | ) | | | (47,599 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,119 | | | | 20,071 | | | | 3,516 | | | | 35,358 | |
Proceeds from reinvestment of distributions | | | 207 | | | | 1,918 | | | | 769 | | | | 7,575 | |
Payments for shares redeemed | | | (3,127 | ) | | | (30,690 | ) | | | (32,673 | ) | | | (333,840 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (801 | ) | | | (8,701 | ) | | | (28,388 | ) | | | (290,907 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,263 | | | | 32,050 | | | | 7,515 | | | | 76,499 | |
Proceeds from reinvestment of distributions | | | 217 | | | | 2,039 | | | | 186 | | | | 1,868 | |
Payments for shares redeemed | | | (1,371 | ) | | | (13,522 | ) | | | (3,274 | ) | | | (31,714 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 2,109 | | | | 20,567 | | | | 4,427 | | | | 46,653 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,348 | | | | 22,244 | | | | 21,632 | | | | 222,569 | |
Proceeds from reinvestment of distributions | | | 343 | | | | 3,182 | | | | 107 | | | | 1,079 | |
Payments for shares redeemed | | | (2,410 | ) | | | (23,596 | ) | | | (3,630 | ) | | | (35,334 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 281 | | | | 1,830 | | | | 18,109 | | | | 188,314 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,528 | | | | 14,900 | | | | 5,035 | | | | 50,350 | |
Proceeds from reinvestment of distributions | | | 716 | | | | 6,631 | | | | 1,219 | | | | 12,052 | |
Payments for shares redeemed | | | (10,490 | ) | | | (100,850 | ) | | | (17,691 | ) | | | (176,279 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (8,246 | ) | | | (79,319 | ) | | | (11,437 | ) | | | (113,877 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,137 | | | | 30,723 | | | | 8,402 | | | | 84,266 | |
Proceeds from reinvestment of distributions | | | 399 | | | | 3,734 | | | | 618 | | | | 6,158 | |
Payments for shares redeemed | | | (4,472 | ) | | | (43,651 | ) | | | (14,737 | ) | | | (148,557 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (936 | ) | | | (9,194 | ) | | | (5,717 | ) | | | (58,133 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (13,293 | ) | | $ | (130,501 | ) | | | (32,977 | ) | | $ | (325,462 | ) |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 139 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| Equity Growth Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,282 | | | $ | 11,742 | | | | 3,141 | | | $ | 29,448 | |
Proceeds from reinvestment of distributions | | | 287 | | | | 2,454 | | | | 333 | | | | 3,086 | |
Payments for shares redeemed | | | (2,802 | ) | | | (25,444 | ) | | | (6,684 | ) | | | (62,622 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,233 | ) | | | (11,248 | ) | | | (3,210 | ) | | | (30,088 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,338 | | | | 19,502 | | | | 6,086 | | | | 52,178 | |
Proceeds from reinvestment of distributions | | | 442 | | | | 3,448 | | | | 541 | | | | 4,639 | |
Payments for shares redeemed | | | (5,880 | ) | | | (49,130 | ) | | | (11,248 | ) | | | (96,983 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3,100 | ) | | | (26,180 | ) | | | (4,621 | ) | | | (40,166 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,199 | | | | 10,349 | | | | 2,117 | | | | 19,341 | |
Proceeds from reinvestment of distributions | | | 77 | | | | 644 | | | | 235 | | | | 2,135 | |
Payments for shares redeemed | | | (1,254 | ) | | | (11,262 | ) | | | (15,320 | ) | | | (144,404 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 22 | | | | (269 | ) | | | (12,968 | ) | | | (122,928 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,927 | | | | 17,648 | | | | 2,795 | | | | 26,161 | |
Proceeds from reinvestment of distributions | | | 85 | | | | 734 | | | | 59 | | | | 544 | |
Payments for shares redeemed | | | (1,235 | ) | | | (11,365 | ) | | | (1,246 | ) | | | (11,464 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 777 | | | | 7,017 | | | | 1,608 | | | | 15,241 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2,020 | | | | 17,306 | | | | 8,564 | | | | 81,015 | |
Proceeds from reinvestment of distributions | | | 138 | | | | 1,161 | | | | 44 | | | | 398 | |
Payments for shares redeemed | | | (1,601 | ) | | | (14,545 | ) | | | (1,517 | ) | | | (13,783 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 557 | | | | 3,922 | | | | 7,091 | | | | 67,630 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,183 | | | | 10,483 | | | | 2,861 | | | | 26,111 | |
Proceeds from reinvestment of distributions | | | 293 | | | | 2,433 | | | | 421 | | | | 3,796 | |
Payments for shares redeemed | | | (6,219 | ) | | | (53,797 | ) | | | (8,815 | ) | | | (80,248 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (4,743 | ) | | | (40,881 | ) | | | (5,533 | ) | | | (50,341 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 3,208 | | | | 29,643 | | | | 8,731 | | | | 81,515 | |
Proceeds from reinvestment of distributions | | | 237 | | | | 2,043 | | | | 287 | | | | 2,662 | |
Payments for shares redeemed | | | (3,672 | ) | | | (33,357 | ) | | | (9,967 | ) | | | (93,071 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (227 | ) | | | (1,671 | ) | | | (949 | ) | | | (8,894 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (7,947 | ) | | $ | (69,310 | ) | | | (18,582 | ) | | $ | (169,546 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | 140 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| 2015 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 677 | | | $ | 6,779 | | | | 1,825 | | | $ | 18,296 | |
Proceeds from reinvestment of distributions | | | 82 | | | | 801 | | | | 124 | | | | 1,228 | |
Payments for shares redeemed | | | (431 | ) | | | (4,296 | ) | | | (737 | ) | | | (7,391 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 328 | | | | 3,284 | | | | 1,212 | | | | 12,133 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 126 | | | | 1,257 | | | | 603 | | | | 6,047 | |
Proceeds from reinvestment of distributions | | | 15 | | | | 146 | | | | 31 | | | | 307 | |
Payments for shares redeemed | | | (241 | ) | | | (2,379 | ) | | | (613 | ) | | | (6,261 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (100 | ) | | | (976 | ) | | | 21 | | | | 93 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 295 | | | | 2,953 | | | | 858 | | | | 8,585 | |
Proceeds from reinvestment of distributions | | | 29 | | | | 284 | | | | 49 | | | | 486 | |
Payments for shares redeemed | | | (707 | ) | | | (7,173 | ) | | | (463 | ) | | | (4,654 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (383 | ) | | | (3,936 | ) | | | 444 | | | | 4,417 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (155 | ) | | $ | (1,628 | ) | | | 1,677 | | | $ | 16,643 | |
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| 2020 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1 | | | $ | 14 | | | | 23 | | | $ | 249 | |
Proceeds from reinvestment of distributions | | | 3 | | | | 28 | | | | 7 | | | | 76 | |
Payments for shares redeemed | | | (95 | ) | | | (1,008 | ) | | | (88 | ) | | | (958 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (91 | ) | | | (966 | ) | | | (58 | ) | | | (633 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 10 | | | | 105 | | | | 130 | | | | 1,397 | |
Proceeds from reinvestment of distributions | | | 4 | | | | 40 | | | | 42 | | | | 444 | |
Payments for shares redeemed | | | (29 | ) | | | (301 | ) | | | (1,423 | ) | | | (15,164 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (15 | ) | | | (156 | ) | | | (1,251 | ) | | | (13,323 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,131 | | | | 12,113 | | | | 4,377 | | | | 47,212 | |
Proceeds from reinvestment of distributions | | | 204 | | | | 2,124 | | | | 356 | | | | 3,768 | |
Payments for shares redeemed | | | (836 | ) | | | (8,885 | ) | | | (2,076 | ) | | | (22,327 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 499 | | | | 5,352 | | | | 2,657 | | | | 28,653 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 409 | | | | 4,377 | | | | 3,761 | | | | 40,255 | |
Proceeds from reinvestment of distributions | | | 60 | | | | 623 | | | | 166 | | | | 1,756 | |
Payments for shares redeemed | | | (1,901 | ) | | | (20,177 | ) | | | (3,879 | ) | | | (42,537 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,432 | ) | | | (15,177 | ) | | | 48 | | | | (526 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,128 | | | | 12,074 | | | | 3,327 | | | | 35,849 | |
Proceeds from reinvestment of distributions | | | 131 | | | | 1,352 | | | | 288 | | | | 3,035 | |
Payments for shares redeemed | | | (3,379 | ) | | | (36,105 | ) | | | (3,438 | ) | | | (36,756 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,120 | ) | | | (22,679 | ) | | | 177 | | | | 2,128 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 600 | | | | 6,409 | | | | 706 | | | | 7,553 | |
Proceeds from reinvestment of distributions | | | 39 | | | | 408 | | | | 60 | | | | 635 | |
Payments for shares redeemed | | | (318 | ) | | | (3,438 | ) | | | (436 | ) | | | (4,622 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 321 | | | | 3,379 | | | | 330 | | | | 3,566 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (2,838 | ) | | $ | (30,247 | ) | | | 1,903 | | | $ | 19,865 | |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 141 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| 2025 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 453 | | | $ | 4,349 | | | | 1,386 | | | $ | 13,480 | |
Proceeds from reinvestment of distributions | | | 65 | | | | 601 | | | | 83 | | | | 792 | |
Payments for shares redeemed | | | (340 | ) | | | (3,252 | ) | | | (528 | ) | | | (5,109 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 178 | | | | 1,698 | | | | 941 | | | | 9,163 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 173 | | | | 1,644 | | | | 689 | | | | 6,669 | |
Proceeds from reinvestment of distributions | | | 17 | | | | 152 | | | | 28 | | | | 269 | |
Payments for shares redeemed | | | (291 | ) | | | (2,730 | ) | | | (751 | ) | | | (7,493 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (101 | ) | | | (934 | ) | | | (34 | ) | | | (555 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 283 | | | | 2,702 | | | | 960 | | | | 9,237 | |
Proceeds from reinvestment of distributions | | | 32 | | | | 295 | | | | 39 | | | | 374 | |
Payments for shares redeemed | | | (605 | ) | | | (5,926 | ) | | | (496 | ) | | | (4,852 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (290 | ) | | | (2,929 | ) | | | 503 | | | | 4,759 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (213 | ) | | $ | (2,165 | ) | | | 1,410 | | | $ | 13,367 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| 2030 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 23 | | | $ | 246 | | | | 30 | | | $ | 320 | |
Proceeds from reinvestment of distributions | | | 1 | | | | 12 | | | | 2 | | | | 16 | |
Payments for shares redeemed | | | (7 | ) | | | (82 | ) | | | (10 | ) | | | (99 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 17 | | | | 176 | | | | 22 | | | | 237 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 11 | | | | 119 | | | | 106 | | | | 1,072 | |
Proceeds from reinvestment of distributions | | | 2 | | | | 15 | | | | 29 | | | | 294 | |
Payments for shares redeemed | | | (9 | ) | | | (94 | ) | | | (1,529 | ) | | | (15,636 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 4 | | | | 40 | | | | (1,394 | ) | | | (14,270 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,027 | | | | 10,313 | | | | 3,511 | | | | 35,887 | |
Proceeds from reinvestment of distributions | | | 129 | | | | 1,243 | | | | 170 | | | | 1,706 | |
Payments for shares redeemed | | | (759 | ) | | | (7,586 | ) | | | (1,107 | ) | | | (11,291 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 397 | | | | 3,970 | | | | 2,574 | | | | 26,302 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 354 | | | | 3,537 | | | | 3,144 | | | | 32,090 | |
Proceeds from reinvestment of distributions | | | 45 | | | | 426 | | | | 95 | | | | 955 | |
Payments for shares redeemed | | | (2,023 | ) | | | (19,906 | ) | | | (3,319 | ) | | | (35,019 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,624 | ) | | | (15,943 | ) | | | (80 | ) | | | (1,974 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,025 | | | | 10,287 | | | | 2,792 | | | | 28,761 | |
Proceeds from reinvestment of distributions | | | 88 | | | | 834 | | | | 154 | | | | 1,558 | |
Payments for shares redeemed | | | (3,059 | ) | | | (30,525 | ) | | | (3,045 | ) | | | (31,262 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,946 | ) | | | (19,404 | ) | | | (99 | ) | | | (943 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 408 | | | | 4,115 | | | | 769 | | | | 7,786 | |
Proceeds from reinvestment of distributions | | | 37 | | | | 355 | | | | 53 | | | | 536 | |
Payments for shares redeemed | | | (271 | ) | | | (2,729 | ) | | | (525 | ) | | | (5,165 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 174 | | | | 1,741 | | | | 297 | | | | 3,157 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (2,978 | ) | | $ | (29,420 | ) | | | 1,320 | | | $ | 12,509 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | 142 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| 2035 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 214 | | | $ | 2,006 | | | | 662 | | | $ | 6,273 | |
Proceeds from reinvestment of distributions | | | 22 | | | | 191 | | | | 20 | | | | 189 | |
Payments for shares redeemed | | | (249 | ) | | | (2,297 | ) | | | (408 | ) | | | (3,908 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (13 | ) | | | (100 | ) | | | 274 | | | | 2,554 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 166 | | | | 1,555 | | | | 507 | | | | 4,808 | |
Proceeds from reinvestment of distributions | | | 10 | | | | 86 | | | | 13 | | | | 126 | |
Payments for shares redeemed | | | (159 | ) | | | (1,443 | ) | | | (637 | ) | | | (6,261 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 17 | | | | 198 | | | | (117 | ) | | | (1,327 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 190 | | | | 1,760 | | | | 545 | | | | 5,117 | |
Proceeds from reinvestment of distributions | | | 19 | | | | 165 | | | | 15 | | | | 143 | |
Payments for shares redeemed | | | (383 | ) | | | (3,663 | ) | | | (255 | ) | | | (2,452 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (174 | ) | | | (1,738 | ) | | | 305 | | | | 2,808 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (170 | ) | | $ | (1,640 | ) | | | 462 | | | $ | 4,035 | |
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| 2040 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2 | | | $ | 23 | | | | 27 | | | $ | 277 | |
Proceeds from reinvestment of distributions | | | 1 | | | | 13 | | | | 2 | | | | 21 | |
Payments for shares redeemed | | | (25 | ) | | | (263 | ) | | | (13 | ) | | | (136 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (22 | ) | | | (227 | ) | | | 16 | | | | 162 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class E | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 17 | | | | 171 | | | | 113 | | | | 1,147 | |
Proceeds from reinvestment of distributions | | | 1 | | | | 13 | | | | 31 | | | | 313 | |
Payments for shares redeemed | | | (9 | ) | | | (90 | ) | | | (1,726 | ) | | | (17,796 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 9 | | | | 94 | | | | (1,582 | ) | | | (16,336 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 852 | | | | 8,590 | | | | 2,421 | | | | 24,940 | |
Proceeds from reinvestment of distributions | | | 80 | | | | 771 | | | | 104 | | | | 1,055 | |
Payments for shares redeemed | | | (676 | ) | | | (6,952 | ) | | | (902 | ) | | | (9,220 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 256 | | | | 2,409 | | | | 1,623 | | | | 16,775 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 305 | | | | 3,077 | | | | 3,197 | | | | 33,065 | |
Proceeds from reinvestment of distributions | | | 26 | | | | 251 | | | | 69 | | | | 706 | |
Payments for shares redeemed | | | (2,344 | ) | | | (23,127 | ) | | | (3,155 | ) | | | (33,704 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (2,013 | ) | | | (19,799 | ) | | | 111 | | | | 67 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 780 | | | | 7,846 | | | | 2,054 | | | | 21,212 | |
Proceeds from reinvestment of distributions | | | 57 | | | | 544 | | | | 103 | | | | 1,044 | |
Payments for shares redeemed | | | (2,358 | ) | | | (23,335 | ) | | | (2,035 | ) | | | (21,041 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,521 | ) | | | (14,945 | ) | | | 122 | | | | 1,215 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class S | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 560 | | | | 5,641 | | | | 979 | | | | 10,093 | |
Proceeds from reinvestment of distributions | | | 33 | | | | 322 | | | | 45 | | | | 451 | |
Payments for shares redeemed | | | (381 | ) | | | (3,808 | ) | | | (605 | ) | | | (6,136 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 212 | | | | 2,155 | | | | 419 | | | | 4,408 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (3,079 | ) | | $ | (30,313 | ) | | | 709 | | | $ | 6,291 | |
| | | | | | | | | | | | | | | | |
| | |
| Notes to Financial Statements | | 143 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| 2045 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 355 | | | $ | 3,211 | | | | 398 | | | $ | 3,758 | |
Proceeds from reinvestment of distributions | | | 29 | | | | 237 | | | | 8 | | | | 69 | |
Payments for shares redeemed | | | (190 | ) | | | (1,727 | ) | | | (246 | ) | | | (2,405 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 194 | | | | 1,721 | | | | 160 | | | | 1,422 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 92 | | | | 834 | | | | 415 | | | | 3,995 | |
Proceeds from reinvestment of distributions | | | 20 | | | | 163 | | | | 14 | | | | 130 | |
Payments for shares redeemed | | | (67 | ) | | | (585 | ) | | | (872 | ) | | | (8,639 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 45 | | | | 412 | | | | (443 | ) | | | (4,514 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 157 | | | | 1,405 | | | | 258 | | | | 2,418 | |
Proceeds from reinvestment of distributions | | | 25 | | | | 207 | | | | 5 | | | | 47 | |
Payments for shares redeemed | | | (148 | ) | | | (1,337 | ) | | | (112 | ) | | | (1,056 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 34 | | | | 275 | | | | 151 | | | | 1,409 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 273 | | | $ | 2,408 | | | | (132 | ) | | $ | (1,683 | ) |
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| 2050 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1,136 | | | $ | 8,780 | | | | 519 | | | $ | 4,958 | |
Proceeds from reinvestment of distributions | | | 188 | | | | 1,323 | | | | 9 | | | | 90 | |
Payments for shares redeemed | | | (131 | ) | | | (1,019 | ) | | | (156 | ) | | | (1,531 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,193 | | | | 9,084 | | | | 372 | | | | 3,517 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 84 | | | | 665 | | | | 605 | | | | 5,890 | |
Proceeds from reinvestment of distributions | | | 69 | | | | 483 | | | | 33 | | | | 312 | |
Payments for shares redeemed | | | (57 | ) | | | (458 | ) | | | (2,071 | ) | | | (20,752 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 96 | | | | 690 | | | | (1,433 | ) | | | (14,550 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 197 | | | | 1,568 | | | | 618 | | | | 5,800 | |
Proceeds from reinvestment of distributions | | | 133 | | | | 934 | | | | 9 | | | | 85 | |
Payments for shares redeemed | | | (384 | ) | | | (3,065 | ) | | | (496 | ) | | | (4,648 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (54 | ) | | | (563 | ) | | | 131 | | | | 1,237 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 1,235 | | | $ | 9,211 | | | | (930 | ) | | $ | (9,796 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | 144 | | | Notes to Financial Statements |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| 2055 Strategy Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 1 | | | $ | 11 | | | | 10 | | | $ | 100 | |
Proceeds from reinvestment of distributions | | | — | | | | 2 | | | | — | | | | 1 | |
Payments for shares redeemed | | | (1 | ) | | | (10 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | — | | | | 3 | | | | 10 | | | | 101 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 7 | | | | 63 | | | | 99 | | | | 955 | |
Proceeds from reinvestment of distributions | | | 1 | | | | 13 | | | | — | | | | 1 | |
Payments for shares redeemed | | | (2 | ) | | | (20 | ) | | | (17 | ) | | | (184 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 6 | | | | 56 | | | | 82 | | | | 772 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 2 | | | | 25 | | | | 11 | | | | 109 | |
Proceeds from reinvestment of distributions | | | — | | | | 1 | | | | — | | | | — | |
Payments for shares redeemed | | | — | | | | (4 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 2 | | | | 22 | | | | 11 | | | | 109 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | 8 | | | $ | 81 | | | | 103 | | | $ | 982 | |
| | | | | | | | | | | | | | | | |
| | |
| | | 2012 | | | 2011 | |
| In Retirement Fund | | Shares | | | Dollars | | | Shares | | | Dollars | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | — | | | $ | — | | | | — | | | $ | — | |
Shares issued in connection with acquisition | | | — | | | | — | | | | 102 | | | | 1,041 | |
Proceeds from reinvestment of distributions | | | 1 | | | | 9 | | | | 1 | | | | 14 | |
Payments for shares redeemed | | | (4 | ) | | | (38 | ) | | | (3 | ) | | | (27 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3 | ) | | | (29 | ) | | | 100 | | | | (1,028 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R1 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 576 | | | | 5,852 | | | | 2,547 | | | | 25,934 | |
Shares issued in connection with acquisition | | | — | | | | — | | | | 2,077 | | | | 21,309 | |
Proceeds from reinvestment of distributions | | | 83 | | | | 829 | | | | 61 | | | | 621 | |
Payments for shares redeemed | | | (585 | ) | | | (5,940 | ) | | | (1,188 | ) | | | (12,153 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 74 | | | | 741 | | | | 3,497 | | | | 35,711 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R2 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 183 | | | | 1,869 | | | | 912 | | | | 9,287 | |
Shares issued in connection with acquisition | | | — | | | | — | | | | 2,014 | | | | 20,641 | |
Proceeds from reinvestment of distributions | | | 30 | | | | 296 | | | | 40 | | | | 403 | |
Payments for shares redeemed | | | (845 | ) | | | (8,535 | ) | | | (1,625 | ) | | | (16,888 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (632 | ) | | | (6,370 | ) | | | 1,341 | | | | 13,443 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Class R3 | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 537 | | | | 5,458 | | | | 2,032 | | | | 20,773 | |
Shares issued in connection with acquisition | | | — | | | | — | | | | 2,479 | | | | 25,362 | |
Proceeds from reinvestment of distributions | | | 70 | | | | 688 | | | | 50 | | | | 505 | |
Payments for shares redeemed | | | (1,610 | ) | | | (16,365 | ) | | | (1,084 | ) | | | (11,053 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,003 | ) | | | (10,219 | ) | | | 3,477 | | | | 35,587 | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | (1,564 | ) | | $ | (15,877 | ) | | | 8,415 | | | $ | 85,769 | |
| | | | | | | | | | | | | | | | |
| 7. | | Interfund Lending Program |
The Funds have been granted permission from the Securities and Exchange Commission to participate in a joint lending and borrowing facility (the “Credit Facility”). 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 RIC funds. The RIC Fund will lend through the program only when the returns are higher than those available from an investment
| | |
| Notes to Financial Statements | | 145 |
Russell Investment Company
LifePoints® Funds
Notes to Financial Statements, continued — April 30, 2012 (Unaudited)
in repurchase agreements or short-term reserves and the portfolio manager determines it is in the best interest of the RIC Fund. The 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 RIC Fund could result in reduced returns or additional borrowing costs. For the period ended April 30, 2012, the Funds did not borrow or loan through the interfund lending program.
As of April 30, 2012, 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 | | | | 33.6 | |
Moderate Strategy Fund | | | 1 | | | | 31.6 | |
Balanced Strategy Fund | | | 1 | | | | 31.1 | |
Growth Strategy Fund | | | 1 | | | | 31.1 | |
Equity Growth Strategy Fund | | | 1 | | | | 37.0 | |
| | | | | | | | |
2015 Strategy Fund | | | 1 | | | | 78.6 | |
2020 Strategy Fund | | | 1 | | | | 48.1 | |
2025 Strategy Fund | | | 2 | | | | 74.4 | |
2030 Strategy Fund | | | 1 | | | | 33.5 | |
2035 Strategy Fund | | | 2 | | | | 44.7 | |
2040 Strategy Fund | | | 2 | | | | 39.0 | |
2045 Strategy Fund | | | 2 | | | | 54.7 | |
2050 Strategy Fund | | | 1 | | | | 77.9 | |
2055 Strategy Fund | | | 2 | | | | 90.7 | |
In Retirement Fund | | | 1 | | | | 41.5 | |
Management has evaluated events and/or transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustments of the financial statements or additional disclosures.
| | | | |
| | 146 | | | Notes to Financial Statements |
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”) in which the Funds invest (the “Underlying Funds”) at a meeting held in person on April 24, 2012 (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 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 16, 2012, the Independent Trustees in preparation for the Agreement Evaluation Meeting met by conference telephone call to review the 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. The Independent Trustees also met in person on April 23, 2012, in executive session with their independent counsel, to review additional Agreement Evaluation Information received to that date. 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 at the Agreement Evaluation Meeting as part of this review encompassed the Funds and all other RIMCo-managed funds for which the Board has supervisory responsibility. Prior to voting at the Agreement Evaluation Meeting, 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 RIMCo’s advice 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 managed directly a portion of one Underlying Fund’s assets employing a “select holdings strategy,” as described below, during 2011 and a portion of 2012, and generally directly manages the investment of each Underlying Fund’s cash. 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. RIMCo may also manage a Fund’s assets to manage risk in the Fund’s investment portfolio. 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
| | |
| Basis for Approval of Investment Advisory Contracts | | 147 |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
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 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 advisory or security 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 for 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 any 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 discussed with senior representatives of RIMCo the impact on the Funds’ operations of significant changes in RIMCo’s senior management and other personnel providing investment advisory and other services to the Funds since 2011 to the date of the Agreement Evaluation Meeting. At the Agreement Evaluation Meeting, RIMCo assured the Board that such changes have not resulted and are not expected
| | | | |
| | 148 | | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
to result in any diminution in the nature, scope or quality of the investment advisory or other services provided to the Funds or the Underlying Funds. The Board also discussed the impact of organizational changes on the compliance programs of the Funds, the Underlying Funds and RIMCo with the Funds’ Chief Compliance Officer (the “CCO”) and received assurances from the CCO that such changes have not resulted in any diminution in the scope and quality of the compliance programs of the Funds or the Underlying Funds.
As noted above, RIMCo, pursuant to the terms of the RIMCo Agreement, directly managed a portion — up to 10% — of the assets of the Russell U.S. Core Equity Fund (the “Participating Underlying Fund”) utilizing a select holdings strategy (the “select holdings strategy”) during 2011 and a portion of 2012, the actual allocation being determined by the Participating Underlying Fund’s RIMCo portfolio manager. The Board considered that the select holdings strategy utilized by RIMCo in managing such assets for the Participating Underlying Fund was designed to increase the Participating Underlying Fund’s exposure to stocks that were viewed as attractive by multiple Money Managers of the Participating Underlying Fund. The select holdings strategy was discontinued during 2012 with respect to the Participating Underlying Fund. The Board considered the impact of the select holdings strategy upon the investment results of the Participating Underlying Fund. The Board also considered that during the periods that the select holdings strategy was utilized for the Participating Underlying Fund, RIMCo was not required to pay investment advisory fees to a Money Manager with respect to assets for which the select holdings strategy was employed and that the profits derived by RIMCo generally, and from the Participating Underlying Fund consequently, may have increased incrementally. The Board, however, further considered RIMCo’s advice that it paid certain Money Managers additional fees for providing information and other services in connection with the select holdings strategy and incurred additional costs in carrying out the select holdings strategy; the limited amount of assets that were 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 were 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 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.
In discussing the Advisory Fees for the Underlying Funds generally, RIMCo noted, among other things, that its Advisory Fees for the 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. RIMCo expressed the view that Advisory Fees should be considered in the context of a Fund’s or Underlying Fund’s total expense ratio to obtain a complete picture. The Board, however, considered each Fund’s and Underlying Fund’s Advisory Fee on both a standalone basis and in the context of the Fund’s or Underlying Fund’s total expense ratio.
The Board considered for each Fund and Underlying Fund whether economies of scale have been realized and whether the Advisory Fee for such Fund or Underlying Fund appropriately reflects or should be revised to reflect any such economies. The Board 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 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 are lower and, in some cases, may be substantially lower, than the rates paid by RIC funds supervised by the Board, including the Funds and the Underlying 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 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
| | |
| Basis for Approval of Investment Advisory Contracts | | 149 |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
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 other clients that comparisons are not probative and should not be given significant weight.
With respect to the Funds’ Advisory Fees, the Third-Party Information showed that, on a contractual basis, the Advisory Fee for each of the Conservative Strategy Fund, Balanced Strategy Fund and Growth Strategy Fund was ranked in the fourth quintile of its Expense Universe. 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), the Advisory Fee for each of the Conservative Strategy Fund, Moderate Strategy Fund and Balanced Strategy Fund was ranked in the fourth quintile of its Expense Universe. The Board considered that the Advisory Fee for each of the Conservative Strategy Fund, Moderate Strategy Fund and Balanced Strategy Fund on an actual basis was within 5 basis points or less from the third quintile of its Expense Universe. In these rankings, the first quintile represents funds with the lowest investment advisory fees among funds in the Expense Universe and the fifth quintile represents funds with the highest fees among the Expense Universe funds. The comparison was based upon the latest fiscal years for the Expense Universe funds. The Board considered RIMCo’s advice as to the reasons for these Funds’ contractual Advisory Fee rankings.
The Third-Party Information showed that total expenses for each of the Funds, with the exception of the Balanced Strategy Fund, Growth Strategy Fund, Equity Growth Strategy Fund and 2035 Strategy Fund, were ranked in the third quintile of its Expense Universe. The total expenses for the Balanced Strategy Fund, Growth Strategy Fund, Equity Growth Strategy Fund and 2035 Strategy Fund each were ranked in the fourth quintile of its Expense Universe. In these rankings, the first quintile represents funds with the lowest total expenses among funds in the Expense Universe and the fifth quintile represents funds with the highest total expenses among the Expense Universe funds. The Board considered RIMCo’s explanation of the rankings and its advice that the Balanced Strategy Fund, Growth Strategy Fund and 2035 Strategy Fund each was within 5 basis points or less from the third quintile of its Expense Universe. RIMCo, among other things, expressed its continuing belief that the Expense Universes for these Funds were not appropriate, noting that the Funds, including the Equity Growth Strategy Fund, generally have higher target allocations to equities than their Comparable Funds and that such higher equity allocations increase Fund expenses.
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 the factors described 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 cash 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 but may enhance the Underlying Funds’ relative performance in a rising market.
With respect to the Equity Growth Strategy Fund, the Third-Party Information showed that the Fund’s performance was ranked in the third quintile of its Performance Universe for the 1- and 5-year periods ended December 31, 2011 but its performance was ranked in the fourth quintile of its Performance Universe for the 3-year period ended such date. RIMCo noted that the Equity Growth Strategy Fund maintains a target equity allocation of 100% exposure to a broad mix of globally diversified equity investments. By contrast, the Equity Growth Strategy Fund’s Comparable Funds, according to RIMCo, have both equity and fixed income exposure. Since the Equity Growth Strategy Fund maintains a higher allocation to equities than the Performance Universe average, its relative performance suffers during periods of declining equity markets and rising bond markets. Conversely, the Fund should benefit from its higher equity weighting during periods of rising equity markets. According to RIMCo, the Equity Growth Strategy Fund’s relative underperformance for the 3-year period ended December 31, 2011 was driven, among other things, by underperformance in 2009 and 2010 as certain Underlying Funds were affected by significant oscillations in investor sentiment based upon macroeconomic news and events in 2009 and 2010, such as the European debt crisis and the subsequent equity market sell-off in the first half of 2011.
| | | | |
| | 150 | | | Basis for Approval of Investment Advisory Contracts |
Russell Investment Company
LifePoints® Funds
Basis for Approval of Investment Advisory Contracts, continued — (Unaudited)
With respect to the 2055 Strategy Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fourth quintile of its Performance Universe for the 1-year period ended December 31, 2011. RIMCo noted that the 2055 Strategy Fund maintained a higher target equity allocation than its Comparable Funds, as the Fund’s target date glide path (its predetermined equity to fixed income exposure over time) is designed to be more aggressive in an investor’s early working years but more conservative closer to retirement. RIMCo believes that an optimal glide path should take more equity risk initially but add fixed income faster as investors approach retirement. The Performance Universe, according to RIMCo, generally was comprised of funds that often take less risk in the initial years of the “glide path,” but tend to maintain higher equity exposure closer to retirement. Since the 2055 Strategy Fund maintained a higher equity weighting than the Performance Universe average, its relative performance was negatively affected by the equity market sell-off following the European debt crisis in the second half of 2011. Conversely, the Fund should benefit from its higher equity weighting during periods of rising equity markets.
The Board 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 periodically volatile capital market conditions since 2008.
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 consistent with the 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’ CCO regarding each Money Manager’s compliance program. RIMCo recommended that each Money Manager be retained at its current fee rate, although RIMCo noted its intentions to recommend terminations of some Money Managers at the Board’s May 2012 meeting generally in connection with planned changes to the investment programs of certain Underlying Funds. 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.
| | |
| Basis for Approval of Investment Advisory Contracts | | 151 |
Russell Investment Company
LifePoints® Funds
Shareholder Requests for Additional Information — April 30, 2012 (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 Underlying Funds may be invested. RIMCo has established a proxy voting committee and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”). The Funds maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders and third parties of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional Information (“SAI”). The SAI and information regarding how the Underlying Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2012 are 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’ prospectuses and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your Financial Intermediary.
Some Financial Intermediaries may offer electronic delivery of the Funds prospectuses and annual and semi-annual reports. Please contact your Financial Intermediary for further details.
Financial statements of the Underlying Funds can be obtained at no charge by calling the Funds at (800) 787-7354.
| | | | |
| | 152 | | | Shareholder Requests for Additional Information |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers — April 30, 2012 (Unaudited)
The following tables provide information for each officer and trustee of the Russell Fund Complex. The Russell Fund Complex consists of Russell Investment Company (“RIC”), which has 38 funds, and Russell Investment Funds (“RIF”), which has 10 funds. Each of the trustees is a trustee of both RIC and RIF. The first table provides information for the interested trustees. 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. Furthermore, each Trustee possesses the following specific attributes: Mr. Alston has business, financial and investment experience as a senior executive of an international real estate firm and is trained as a lawyer; Ms. Blake has had experience as a certified public accountant and has had experience as a member of boards of directors/trustees of other investment companies; Mr. Connealy has had experience with other investment companies and their investment advisers first as a partner in the investment management practice of PricewaterhouseCoopers LLP and, subsequently, as the senior financial executive of two other investment organizations sponsoring and managing investment companies, Mr. Fine has had financial, business and investment experience as a senior executive of a non-profit organization and previously, as a senior executive of a large regional financial services organization with management responsibility for such activities as investments, asset management and securities brokerage; Mr. Tennison has had business, financial and investment experience as a senior executive of a corporation with international activities and was trained as an accountant; Mr. Thompson has had experience in business, governance, investment and financial reporting matters as a senior executive of an organization sponsoring and managing other investment companies, and, subsequently, has served as a board member of other investment companies and has been determined by the Board to be an “audit committee financial expert,” as explained below; and Ms. Weston has had experience as a tax and corporate lawyer, has served as general counsel of several corporations and has served as a director of another investment company. Ms. Cavanaugh has had experience with other financial services companies, including companies engaged in the sponsorship, management and distribution of investment companies. As a senior officer of the Funds, the Adviser and various affiliates of the Adviser providing services to the Funds, Ms. Cavanaugh is in a position to provide the Board with such parties’ perspectives on the management, operations and distribution of the Funds.
| | | | | | | | | | | | |
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 During the Past 5 Years |
INTERESTED TRUSTEES | | | | | | | | | | |
# Sandra Cavanaugh, Born May 10, 1954 1301 Second Avenue, 18th Floor, Seattle, WA 98101 | | 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 • Chairman of the Board, President and CEO, Russell Financial Services, Inc. • Chairman of the Board, President and CEO, Russell Fund Services Company (“RFSC”) • Chairman of the Board and President, Russell Insurance Agency, Inc. (“RIA”) (insurance agency) • 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. (investment company) • 1997 to 2007, President – WM Funds Distributor & Shareholder Services/WM Financial Services (investment company) | | | 48 | | | None |
| | | | | | | | | | | | | |
## Daniel P. Connealy, Born June 6, 1946 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2003 | | Appointed until successor is duly elected and qualified | | • June 2004 to present, Senior Vice President and Chief Financial Officer, Waddell & Reed Financial, Inc. (investment company) • Chairman of the Audit Committee, RIC and RIF from 2005 to 2011 | | | 48 | | | None |
| # | Ms. Cavanaugh is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
| ## | Mr. Connealy is an officer of a broker-dealer that distributes shares of the Funds and is therefore an Interested Trustee. |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 153 |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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
During the Past 5 Years |
INDEPENDENT TRUSTEES | | | | | | | | | | |
Thaddas L. Alston, Born April 7, 1945 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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) | | | 48 | | | None |
| | | | | | | | | | | | | |
Kristianne Blake, Born January 22, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2000 Chairman since 2005 | | Appointed until successor is duly elected and qualified Annual | | • Director and Chairman of the Audit Committee, Avista Corp. (electric utilities) • Trustee and Chairman of the Operations Committee, Principal Investor Funds and Principal Variable Contracts Funds (investment company) • Regent, University of Washington • President, Kristianne Gates Blake, P.S. (accounting services) | | | 48 | | | • Director, Avista Corp (electric utilities); • Trustee, Principal Investor Funds (investment company); • Trustee, Principal Variable Contracts Funds (investment company) |
| | | | | | | | | | | | | |
Jonathan Fine, Born July 8, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2004 | | Appointed until successor is duly elected and qualified | | • President and Chief Executive Officer, United Way of King County, WA (charitable organization) | | | 48 | | | None |
| | | | | | | | | | | | | |
Raymond P. Tennison, Jr., Born December 21, 1955 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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 of the Board, Simpson Investment Company (paper and forest products) • Until November 2010, President, Simpson Investment Company and several additional subsidiary companies, including Simpson Timber Company, Simpson Paper Company and Simpson Tacoma Kraft Company | | | 48 | | | None |
| | | | |
| | 154 | | | Disclosure of Information about Fund Trustees and Officers |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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 During the Past 5 Years |
INDEPENDENT TRUSTEES (continued) | | | | | | | | | | |
Jack R. Thompson, Born March 21, 1949 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2005 Chairman of the Audit Committee, RIC and RIF since 2012 | | Appointed until successor is duly elected and qualified 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 (investment company) • September 2007 to September 2010, Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation (health products company) | | | 48 | | | • Director, Board Chairman and Chairman of the Audit Committee, LifeVantage Corporation until September 2010 (health products company) • Director, Sparx Asia Funds until 2009 (investment company) |
| | | | | | | | | | | | | |
Julie W. Weston, Born October 2, 1943 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee since 2002 | | Appointed until successor is duly elected and qualified | | • Retired • Chairperson of the Investment Committee until December 2009 | | | 48 | | | None |
| * | Each Trustee is subject to mandatory retirement at age 72. |
| | | | | | | | | | | | |
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 During the Past 5 Years |
TRUSTEE EMERITUS | | | | | | | | | | | | |
* George F. Russell, Jr., Born July 3, 1932 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | 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) | | | 48 | | | None |
** Paul E. Anderson, Born October 15, 1931 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Trustee Emeritus since 2007 | | Five year term | | • President, Anderson Management Group LLC (private investments consulting) • February 2002 to June 2005, Lead Trustee, RIC and RIF • Trustee of RIC and RIF until 2006 • Chairman of the Nominating and Governance Committee 2006 | | | 48 | | | None |
| * | Mr. Russell is also a director emeritus of one or more affiliates of RIC and RIF. |
| ** | Effective December 31, 2011, Mr. Anderson’s term as Trustee Emeritus expired. |
| | |
| Disclosure of Information about Fund Trustees and Officers | | 155 |
Russell Investment Company
LifePoints® Funds
Disclosure of Information about Fund Trustees and Officers, continued — April 30, 2012 (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 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Chief Compliance Officer since 2005 | | Until removed by Independent Trustees | | • Chief Compliance Officer, RIC • Chief Compliance Officer, RIF • 2005-2011 Chief Compliance Officer, RIMCo • Chief Compliance Officer, RFSC • Chief Compliance Officer, Russell Exchange Traded Funds Trust |
Sandra Cavanaugh, Born May 10, 1954 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | President and Chief Executive Officer since 2010 | | Until successor is chosen and qualified by Trustees | | • President and CEO, RIC and RIF • Chairman of the Board, Co-President and CEO, Russell Financial Services, Inc. • Chairman of the Board, President and CEO, RFSC • Director, RIMCo • Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) • 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 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Treasurer and Chief Accounting Officer since 1998 | | Until successor is chosen and qualified by Trustees | | • Treasurer, Chief Accounting Officer and CFO, RIC and RIF • Treasurer, Chief Accounting Officer and CFO, Russell Exchange Traded Funds Trust • Director, Funds Administration, RIMCo, RFSC, RTC and Russell Financial Services, Inc. • Treasurer and Principal Accounting Officer, SSgA Funds |
Peter Gunning, Born February 22, 1967 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Chief Investment Officer since 2008 | | Until removed by Trustees | | • Chief Investment Officer, RIC and RIF • Director, FRC • Chairman of the Board, President and CEO, RIMCo • 1996 to 2008 Chief Investment Officer, Russell, Asia Pacific |
Mary Beth Rhoden, Born April 25, 1969 1301 Second Avenue, 18th Floor Seattle, WA 98101 | | Secretary since 2010 | | Until successor is chosen and qualified by Trustees | | • 1999 to 2010 Assistant Secretary, RIC and RIF • Associate General Counsel, FRC • Secretary, RIMCo, RFSC and Russell Financial Services, Inc. • Secretary and Chief Legal Officer, RIC and RIF • Secretary and Chief Legal Officer, Russell Exchange Traded Funds Trust |
| | | | |
| | 156 | | | Disclosure of Information about Fund Trustees and Officers |
LifePoints® Funds
Russell Investment Company
1301 Second Avenue, Seattle, Washington 98101
(800) 787-7354
Interested Trustee
Sandra Cavanaugh
Daniel P. Connealy
Independent Trustees
Thaddas L. Alston
Kristianne Blake
Jonathan Fine
Raymond P. Tennison, Jr.
Jack R. Thompson
Julie W. Weston
Trustees Emeritus
George F. Russell, Jr.
Paul E. Anderson
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
Mary Beth Rhoden, Secretary
Adviser
Russell Investment Management Company
1301 Second Avenue
Seattle, WA 98101
Administrator and Transfer and Dividend Disbursing Agent
Russell Fund Services Company
1301 Second Avenue
Seattle, WA 98101
Custodian
State Street Bank and Trust Company
1200 Crown Colony Drive
Crown Colony Office Park
Quincy, MA 02169
Office of Shareholder Inquiries
1301 Second Avenue
Seattle, WA 98101
(800) 787-7354
Legal Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116-5021
Distributor
Russell Financial Services, Inc.
1301 Second Avenue
Seattle, WA 98101
Money Managers of Underlying Funds as of
April 30, 2012
Russell U.S. Core Equity Fund
BlackRock Capital Management, Inc., Wilmington, DE
Columbus Circle Investors, Stamford, CT
Institutional Capital LLC, Chicago, IL
Lazard Asset Management LLC, New York, NY
Schneider Capital Management Corporation, Wayne, PA
Snow Capital Management L.P., Sewickley, PA
Suffolk Capital Management LLC, New York,
Sustainable Growth Advisers, LP, Stamford, CT
Russell U.S. Quantitative Equity Fund
Aronson+Johnson+Ortiz, LP, Philadelphia, PA
INTECH Investment Management LLC, West Palm Beach, FL
Jacobs Levy Equity Management Inc, Florham Park, NJ
Numeric Investors LLC, Boston, MA
PanAgora Asset Management Inc, Boston, MA
Russell U.S. Small Cap Equity Fund
Chartwell Investment Partners, Berwyn, PA
ClariVest Asset Management LLC, San Diego, CA
DePrince, Race & Zollo, Inc., Winter Park, FL
EAM Investors, LLC, Cardiff by the Sea, CA
Falcon Point Capital, LLC, San Francisco, CA
Huber Capital Management LLC, Los Angeles, CA
Jacobs Levy Equity Management Inc, Florham Park, NJ
Next Century Growth Investors LLC, Minneapolis, MN
PENN Capital Management Company, Inc., Philadelphia, PA
Ranger Investment Management, L.P., Dallas, TX
Signia Capital Management, LLC, Spokane, WA
Russell Global Opportunistic Credit Fund
DDJ Capital Management LLC, Waltham, MA
Oaktree Capital Management, L.P., Los Angeles, CA
Stone Harbor Investment Partners LP, New York, NY
Russell Investment Grade Bond Fund
Logan Circle Partners, L.P., Philadelphia, PA
Metropolitan West Asset Management, LLC, Los Angeles, CA
Neuberger Berman Fixed Income LLC, Chicago, IL
Pacific Investment Management Company LLC, Newport Beach, CA
Russell Short Duration Bond Fund
Logan Circle Partners, L.P., Philadelphia, PA
Pacific Investment Management Company LLC, Newport Beach, CA
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 Emerging Markets Fund
AllianceBernstein L.P., New York, NY
Arrowstreet Capital, Limited Partnership, Boston, MA
Delaware Management Company, a Series of Delaware
Management Business Trust, Philadelphia, PA
Genesis Asset Managers, LLP, Guernsey, Channel Islands
Harding Loevner LP, Bridgewater, NJ
UBS Global Asset Management (Americas) Inc., Chicago, IL
Victoria 1522 Investments, LP, San Francisco, CA
| | |
| Manager, Money Managers and Service Providers | | 157 |
LifePoints® Funds
Russell Investment Company
1301 Second Avenue, Seattle, Washington 98101
(800) 787-7354
Russell Global Equity Fund
GLG Inc., New York, NY
Harris Associates LP, Chicago, IL
MFS Institutional Advisors Inc., Boston, MA
Sanders Capital, LLC, New York, NY
Tradewinds Global Investors, LLC, Los Angeles, CA
T. Rowe Price Associates, Inc., Baltimore, MD
Russell International Developed Markets Fund
AQR Capital Management, LLC, Greenwich, CT
Axiom International Investors LLC, Greenwich, CT
del Rey Global Investors, LLC, Los Angeles, CA
Driehaus Capital Management LLC, Chicago, IL
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
William Blair & Company L.L.C., Chicago, IL
Russell Commodity Strategies Fund
Credit Suisse Asset Management, LLC, New York, NY
Goldman Sachs Asset Management, L.P., New York, NY
Jefferies Asset Management, LLC, Stamford, CT
Russell Global Infrastructure Fund
Cohen & Steers Capital Management, Inc., New York, NY
Macquarie Capital Investment Management LLC, New York, NY
Nuveen Asset Management, LLC, Chicago, IL
Russell Global Real Estate Securities Fund
AEW Capital Management LP, Boston, MA
Cohen & Steers Capital Management, Inc., New York, NY
INVESCO Advisers, Inc. which acts as a money manager to
the Fund through its INVESCO Real Estate Division, Dallas, TX
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.
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| | 158 | | | Manager, Money Managers and Service Providers |
| | | | |
| Russell Investment Company | | 1301 Second Avenue | | 800-787-7354 |
| | Seattle, Washington 98101 | | Fax: 206-505-3495 |
| | | | 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.
Item 12. Exhibit List
(a) Certification for principal executive officer of Registrant as required by Rule 30a-2(a) under the Act and certification for principal financial officer of Registrant as required by Rule 30a-2(a) under the Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| Russell Investment Company |
| |
| By: | | /s/ Sandra Cavanaugh |
| | Sandra Cavanaugh |
President, Principal Executive Officer and Chief Executive Officer |
Date: June 29, 2012
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 29, 2012
| | |
| |
| By: | | /s/ Mark E. Swanson |
| | Mark E. Swanson |
Principal Financial Officer, Principal Accounting Officer and Treasurer |
Date: June 29, 2012
