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Product Updates from Russell Investments

By March 9, 2021No Comments
From Russell Investments:
Important Information: Annual prospectus update, Core Model Strategies and LifePoints® Funds reallocations, liquidation of two RIC funds, and manager changes in two RIC funds

As part of our commitment to providing you with timely information regarding important updates, we want to inform you that Russell Investment Company (RIC) Funds prospectuses have been updated to reflect changes to certain funds’ net expense ratios effective March 1, 2021.

In addition, we are making strategic adjustments to the Core Model Strategies and the LifePoints Funds, Target Portfolio Series to reflect current market conditions, Russell Investments’ market outlook and investors’ objectives. See below for further information.

Stay up-to-date on the latest changes to our investment solutions by visiting our Product Updates page (login required).

Annual prospectus update
Fund expense ratios are updated with each annual prospectus update. Changes in net expense ratios are a function of several factors including assets under management (AUM), actual expenses paid in the previous fiscal year, expenses expected to be incurred in the current fiscal year, and management of caps and waivers.

Highlights:

  • Lower expense ratios in 12 Russell Investment Company (RIC) Funds
  • Increase in expense ratios to 5 RIC Funds

For more detailed information on the above changes:

Asset allocation changes
Russell Investments LifePoints® Funds, Target Portfolio Series allocation changes will be effective April 16, 2021.

Core Model Strategies allocation changes will be effective on or about April 21, 2021 (or a date determined by your home office).

Further information about the changes, including FAQs and allocation tables, will be forthcoming later this month.

Liquidation of RIC Commodity Strategies Fund and RIC U.S. Dynamic Equity Fund
The March 3, 2021 prospectus supplement for the Russell Investment Company (RIC) Funds prospectus announced the plan to liquidate the Commodity Strategies Fund and the U.S. Dynamic Equity Fund on or before April 27, 2021.

For more detailed information on the above changes:

Money manager changes
Changes to the lineup and weights of third-party money managers were made to the following Russell Investment Company (RIC) Funds:

  • Strategic Bond Fund (effective March 1, 2021)
  • Short Duration Bond Fund (effective March 3, 2021)

For more detailed information on the above changes:

SPECIAL NOTES:

  1. If your firm is reliant upon a turnkey asset management program (TAMP), such as Envestnet or Lockwood, we’re working with them to provide the operational assistance needed to implement these changes.
  2. Please note that the products listed within this email communication may or may not be available for investment on your firm’s platform(s). Before sharing any client-ready information with your clients, please ensure that the included material is approved by your firm’s compliance department.

Contact us: 1(800)787-7354       
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THIS MATERIAL IS FOR FINANCIAL PROFESSIONAL USE ONLY AND NOT FOR DISTRIBUTION TO CURRENT OR POTENTIAL INVESTORS.

Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus containing this and other important information can be obtained by calling (800) 787-7354 or visiting russellinvestments.com. Please read a prospectus carefully before investing.

fund investing involves risk, principal loss is possible.

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.

Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.

Strategic asset allocation and diversification do not assure profit or protect against loss in declining markets.

Model Strategies represent target allocation of Russell Investment Company funds; these models are not managed and cannot be invested in directly.

Model Strategies are exposed to the specific risks of the fund directly proportionate to their fund allocation. The funds comprising the strategies and allocations to those funds have changed over time and may change in the future.

The LifePoints® Funds are a series of funds which expose an investor to the risks of the underlying funds proportionate to their allocation. Investment in LifePoints® Funds involves direct expenses of each fund and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund.

Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.

Copyright © 2021 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.

Russell Investment Company mutual funds and Russell Investment Funds are distributed by Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments.


First used: March 2021. RIFIS 23652 – generic

TC119935(0321)1