M Share 7 Tax-Managed Model Strategies eKit - Q320

Tax-efficient investing: The proof is in the numbers

Russell Investments’ Tax-Managed Model Strategies

Since 1985, with the launch of its Tax-Exempt Bond Fund, Russell Investments’ goal has been to help investors maximize their after-tax wealth. Our active tax-management strategies in our tax-managed equity funds and broad diversification in our tax-exempt bond funds have helped reduce capital gain distributions over time—managing the tax impact to investors. As you can see below, historically Russell Investments’ Tax-Managed Model Strategies, comprised of these mutual funds, have been minimizing the tax drag by using our disciplined tax-efficient investment approach.

Yearly Capital Gain Distributions Tax-Managed Model Strategies – Class M Shares

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Short Term 0.00% 0.00% 0.00% 0.08% 0.14% 0.00% 0.00% 0.00% 0.05% 0.11% 0.02% 0.07% 0.08% 0.17% 0.06% 0.01% 0.03% Long Term 0.00% 0.00% 0.10% 0.16% 0.25% 0.00% 0.00% 0.00% 0.00% 0.01% 0.16% 0.70% 0.19% 0.19% 0.22% 0.11% 0.01%

Tax-Managed Conservative

Total 0.00% 0.00% 0.10% 0.25% 0.39% 0.00% 0.00% 0.00% 0.05% 0.12% 0.18% 0.77% 0.27% 0.36% 0.28% 0.12% 0.04%

Short Term 0.00% 0.00% 0.00% 0.31% 0.54% 0.00% 0.00% 0.00% 0.05% 0.11% 0.08% 0.09% 0.07% 0.15% 0.06% 0.01% 0.02% Long Term 0.00% 0.00% 0.35% 0.65% 1.20% 0.00% 0.00% 0.00% 0.08% 0.02% 0.46% 1.27% 0.19% 0.19% 0.25% 0.11% 0.01%

Tax-Managed Moderate

Total 0.00% 0.00% 0.35% 0.96% 1.74% 0.00% 0.00% 0.00% 0.13% 0.13% 0.54% 1.36% 0.26% 0.34% 0.31% 0.12% 0.03%

Short Term 0.00% 0.00% 0.00% 0.54% 0.94% 0.00% 0.00% 0.00% 0.00% 0.01% 0.10% 0.03% 0.03% 0.04% 0.06% 0.01% 0.00% Long Term 0.00% 0.00% 0.58% 1.24% 2.16% 0.14% 0.00% 0.00% 0.16% 0.02% 0.56% 1.78% 0.18% 0.17% 0.29% 0.11% 0.00%

Tax-Managed Balanced

Total 0.00% 0.00% 0.58% 1.78% 3.10% 0.14% 0.00% 0.00% 0.16% 0.03% 0.66% 1.81% 0.21% 0.21% 0.35% 0.12% 0.00%

Short Term 0.00% 0.00% 0.00% 0.66% 1.14% 0.00% 0.00% 0.00% 0.00% 0.02% 0.15% 0.04% 0.03% 0.04% 0.06% 0.01% 0.00% Long Term 0.00% 0.00% 0.70% 1.53% 2.68% 0.19% 0.00% 0.00% 0.25% 0.02% 0.81% 2.44% 0.19% 0.17% 0.32% 0.11% 0.00%

Tax-Managed Growth

Total 0.00% 0.00% 0.70% 2.18% 3.82% 0.19% 0.00% 0.00% 0.25% 0.04% 0.96% 2.48% 0.22% 0.21% 0.38% 0.12% 0.00%

Short Term 0.00% 0.00% 0.00% 0.84% 1.45% 0.00% 0.00% 0.00% 0.00% 0.02% 0.17% 0.05% 0.04% 0.05% 0.10% 0.01% 0.00% Long Term 0.00% 0.00% 0.89% 1.94% 3.41% 0.24% 0.00% 0.00% 0.29% 0.03% 0.96% 2.94% 0.26% 0.25% 0.43% 0.17% 0.00%

Tax-Managed Equity Growth

Total 0.00% 0.00% 0.89% 2.78% 4.82% 0.24% 0.00% 0.00% 0.29% 0.05% 1.13% 2.99% 0.30% 0.30% 0.53% 0.18% 0.00%

Historical data shown is not an indicator of future results. Investors should consult with their financial and tax advisors before investing. The underlying Funds of Tax-Managed Model Strategies first issued Class M Shares on March 17, 2017. Data shown for 2017 are based on returns that occurred between March 17, 2017 and December 31, 2017. The returns shown for Class M Shares prior to 2017 are the returns of the Fund’s Class S Shares.

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