Russell Tax Exempt Bond Fund Offering tax-sensitive diversification
Fund objective
Seeks to provide federal tax-exempt current income consistent with the preservation of capital. The fund will invest, under normal circumstances, at least 80% of the value of its assets in investments, the income from which is exempt from federal income tax.
Sector weightings As of 09/30/2009 Updated monthly
% of total market value
General Obligation Utility Revenue Other Revenue Industrial Revenue Health Care Revenue Cash Equivalents Education Revenue Pollution Control Revenue Leasing Revenue Housing Revenue Refunded and Special Obligations
27.6 14.6 13.0 12.9 8.8 8.4 8.3 2.8 2.3 1.0 0.4
Due to rounding totals may not equal 100%.
Quality rating As of 09/30/2009 Updated quarterly
% of market value
U.S. Govt & Agency
0
AAA
22
AA
34
A
25
BBB
15
BB
1
Other
2
Debt instrument quality ratings are based upon Moody's Investors Service Inc. and Standard & Poor's Corporation. For additional information on quality ratings, see the Statement of Additional Information.
Due to rounding totals may not equal 100%.
Top 10 holdings As of 10/31/2009 Updated monthly
% of fund
State of Ohio General Obligation Unlimited Puerto Rico Sales Tax Financing Corp. Revenue Bond City of Dallas Texas Revenue Bonds State of Minnesota General Obligation Unlimited Puerto Rico Public Finance Corp. Revenue Bonds Pennsylvania Higher Educational Facilties Authorit State of Georgia General Obligation Unlimited State of Wisconsin Certificate Of Participation Commonwealth of Pennsylvania General Obligation Un State of Maryland General Obligation Unlimited
1.3 1.0 0.8 0.8 0.8 0.8 0.8 0.7 0.7 0.7
8.4
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.
Characteristics As of 09/30/2009 Updated quarterly
Total net assets (All classes)
$453.0 million
Weighted average duration (All classes)1
4.9 years
30-day SEC yield (Class S)2
2.42%
Tax equivalent yield (Class S)3
3.72%
1 Duration approximates the percentage change in the price of a bond or the value of a portfolio of bonds for every one percentage point shift in interest rates.
2 The fund's current yield for the 30-day period ending 09/30/2009
3 The tax equivalent yield is based on a tax rate of 35%.
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.
On September 2, 2008, the name of the Tax Exempt Bond Fund changed to the Russell Tax Exempt Bond Fund.
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.
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