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.
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.
Invests primarily in high-quality securities of state and local government entities that provide interest income exempt of federal taxes.
Targets intermediate maturities.
Fund highlights
Provides a diversified portfolio of high-quality tax-exempt bonds to help manage an investor's tax burden and preserve capital.
Adds stability to a diversified portfolio because bonds historically have been less volatile than equities.
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%.
Cusip
Ticker
Class C
782493324
RTECX
Class E
782493316
RTBEX
Class S
782493837
RLVSX
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.
Please remember that all investments carry some level of risk including the potential loss of principal invested.
They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
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.
Income from funds managed for tax efficiency may be subject to an alternative minimum tax and/or any applicable state and local taxes.
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.
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