S Share 7 Tax-Managed Model Strategies eKit - Q320

THREE REASONS TO CONSIDER RUSSELL INVESTMENTS’

Tax-Managed and Tax-Exempt Solutions

Taxes have the ability to seriously erode returns. We believe if you’re not worrying about the tax drag on your taxable investments, you’re almost certainly paying a price. And you’re almost certainly paying a lot in our view. Consider this: According to Morningstar, as a whole, U.S. equity funds* (active, passive, ETFs) gave up 2% of returns to taxes for the three-year period ending September 2020. That means a mutual fund with a 10% pre-tax, three-year annualized return had a return of only 8% on an after-tax basis.** Industry average annualized tax drag by asset class Three years ending on September 30, 2020*

What is tax drag?

The reduction of potential investment returns due to taxes is called tax drag. Being thoughtful on maximizing after-tax returns can be key for successful long- term investment outcomes.

U.S. Equity

International Equity

Fixed Income

2.0%

1.1%

1.4%

The good news: Russell Investments can help. No one can make taxes go away, but the good news is that Russell Investments' Tax-Managed Solutions have helped increase after-tax returns for investors in a meaningful way—and may help you too. Here are three reasons to consider Russell Investments’ Tax-Managed and Tax-Exempt Solutions: 1 Compelling results Historically consistent pre-tax returns with lower-than-average tax drag*** 2 Demonstrated expertise A disciplined tax-managed investment approach with 30+ years of experience 3 Compounding power Taking a long-term view designed to help maximize after-tax wealth * U.S. Equity: Morningstar U.S. Equity Universes average, International Equity: Morningstar International Equity Universes average, Fixed Income: Morningstar Taxable Bond Universes average. Tax Drag: Morningstar Tax Cost Ratio. See page 6 for Morningstar Categories and Methodology for Tax Drag, Morningstar’s tax cost ratio assumes the highest possible applicable tax rates, including the 3.8% net investment income tax. Many investors are not subject to the highest rates. Note that tax drag calculations only apply to taxable accounts. ** For illustrative purposes only. *** Past performance is no guarantee of future results. See page 5 for annualized returns.

russellinvestments.com

Not a Deposit • Not FDIC Insured • May Lose Value • Not Bank Guaranteed • Not Insured by any Federal Government Agency