Individual investors

Russell Strategic Bond Fund Broadening bond exposure How to invest with Russell Fund objective Seeks to provide current income, and as a secondary objective, capital appreciation OVERVIEW PERFORMANCE HOLDINGS & DETAILS MANAGERS More fund information Daily prices & standardized performance Prospectus & reports Printable fact sheet (PDF) Month end holdings Tax information Sector weightings¹ As of 12/31/2011 Updated monthly     % of total market value U.S. Government/Agency Investment Grade Credit High Yield Commercial Mortgage Backed Residential Mortgage Backed Asset Backed Emerging Markets Debt Non-U.S. Dollar/Foreign Exchange Net Cash & Equivalents Other   21.4 21.4 4.0 6.0 39.3 4.2 2.0 0.0 1.8 -0.1 Due to rounding totals may not equal 100%. The Other sector includes pooled investment vehicles, certain derivatives, stocks, municipal bonds and other investments not falling within one of the other listed sectors. Quality rating As of 12/31/2011 Updated monthly     % of market value A AA AAA B BB BBB CCC & Below Unrated US Govt. & Agency   11 44 28 1 2 10 4 1 0 The sum of the debt instrument quality ratings is based upon the Barclays Capital index methodology, which reflects the ratings of three nationally recognized statistical rating organizations in such a way that if three different ratings exist for the same instrument, the median rating is used: if two different ratings exist, the lower of the two is used and if only one rating exists, then that rating is used. If the debt instrument has not been rated by any of the three rating agencies, the security is classified as "Unrated." Sector allocations and credit quality exposures may not equal 100 percent as a result of the fund's use of certain financial instruments such as futures, forwards, options, swaps and when issued transactions or forward commitments. Managers utilize these instruments as a substitute for holding securities directly, for hedging purposes, to take a net short position in certain markets or to adjust the interest rate sensitivity and duration of the portfolio. In the event short positions are created, they may be reflected as negative weightings in sector allocations and credit quality exposures. U.S. Government & Agency category has been removed and those securities have been consolidated into the other quality ratings categories. Top 10 holdings As of 12/31/2011 Updated monthly     % of fund United States Treasury Notes Fannie Mae United States Treasury Notes Fannie Mae Fannie Mae United States Treasury Notes United States Treasury Notes United States Treasury Notes United States Treasury Notes United States Treasury Notes   2.4 2.2 2.2 1.9 1.6 1.2 1.1 0.9 0.8 0.7     15.0 The top ten holdings list does not reflect the investment of cash reserves and cash collateral received in securities lending transactions in one or more of Russell Investment Company's money market funds. More holdings: Month end holdings As of 12/31/2011 Select a different Russell fund Russell Commodity Strategies Russell Emerging Markets Russell Global Equity Russell Global Infrastructure Russell Global Opportunistic Credit Russell Global Real Estate Securities Russell International Developed Markets Russell Investment Grade Bond Russell Money Market Russell Short Duration Bond Russell Strategic Bond Russell Tax Exempt Bond Russell Tax-Managed U.S. Large Cap Russell Tax-Managed U.S. Mid & Small Cap Russell U.S. Core Equity Russell U.S. Growth Russell U.S. Quantitative Equity Russell U.S. Small Cap Equity Russell U.S. Mid Cap Equity Russell U.S. Large Cap Equity Russell U.S. Value ----LifePoints® Funds---- Conservative Strategy Moderate Strategy Balanced Strategy Growth Strategy Equity Growth Strategy 2017 Retirement Distribution — S Shares 2017 Retirement Distribution — A Shares Fund objectives, risks, charges and expenses should be carefully considered before investing. For a prospectus containing this and other important information call Russell at 1-866-676-7680 or go to the prospectus and reports page to download one. Please read the prospectus carefully before investing. ¹ As of 3/31/2011, the Bank Loan sector weighting is now included in the High Yield sector. The prior quarter's Bank Loan sector weighting was 1 percent or less and was identified as its own sector. Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield ("junk") bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages. Investment in non-U.S. and emerging market securities is subject to the risk of currency fluctuations and to economic and political risks associated with such foreign countries. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. For more information on Russell Funds, contact your investment professional or plan administrator for assistance. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. The Russell logo is a trademark and service mark of Russell Investments. Securities products and services offered through Russell Financial Services, Inc., member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. Copyright © Russell Investments 2007-2011. All rights reserved. First used April 2011. RFS-5652 Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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