S Share 7 Tax-Managed Model Strategies eKit - Q320

TAX-MANAGED

SNAPSHOT

WHO WE ARE We are a leading global investment solutions partner, dedicated to improving people’s financial security.

OUR EXPERIENCE

84 years ago We were founded as a small brokerage firm by Frank Russell.

WHOWE SERVE

We work with some of the most iconic investors, financial advisors and the individuals they serve.

51 years ago We were a pioneer in providing asset allocation and manager research to some of the world's largest pension plans.

• News Corp Australia • UniSaver New Zealand • Shell Oil Company • The Boeing Company • The Mosaic Company • Toshiba Corporation • Toyota Motor Corporation

• Aetna Inc. • AT&T Inc.

• Caterpillar Inc. • CenturyLink Inc. • Duke Energy Corporation • Mitsubishi Electric Corporation • Nestlé

35 years ago We used our institutional expertise to build multi-asset model portfolios for advisors serving individual investors.

Representative client list as of 3/2020. Clients may contract for a variety of services from Russell Investments. The identification of the clients listed does not constitute an endorsement or recommendation of Russell Investments’ products or services by such client.

INVESTMENT APPROACH

Our approach brings the world’s

Today

Manager products monitored Manager products continually researched Manager products with a primary ‘hire’ rating Manager products used in Russell Investments' Funds

14,151

We manage $284.8 billion

and advise on $2.5 trillion *

leading managers and strategies together—in an efficient and diversified

8,213

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

722

portfolio—aimed at achieving your goals.

245

* As of December 31, 2019.

Data as of June 30, 2020 unless otherwise stated.

OUR NUMBERS

$270.1 billion assets under management

Our mission is to improve people's financial security. Whether you're trying to grow your investments, maximize your after-tax wealth, or generate sustainable income during retirement—together with your financial advisor—we can help you achieve your financial goals. Learn more about how we can help at russellinvestments.com . Fund objectives, risks, charges, and expenses should be carefully considered before investing. A summary prospectus, or a prospectus, containing this and other important information can be obtained by calling 800‑787‑7354 or by visiting russellinvestments. com. Please read a prospectus carefully before investing. The investment styles employed by a Fund’s money managers may not be complementary. This concentration may be beneficial or detrimental to a Fund’s performance depending upon the performance of those securities and the overall economic environment. The multi-manager approach could increase a Fund’s portfolio turnover rates which may result in higher levels of realized capital gains or losses with respect to a Fund’s portfolio securities, higher brokerage commissions and other transaction costs. Please consult with your financial and tax advisors before investing. Diversification does not assure a profit or guarantee against loss in declining markets. Please remember that all investments carry some level of risk. 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 Global representative client list was selected from Russell Investments’ complete client roster and clients have given permission to publish their names (as of 3/2020). Clients listed hold top AUM and/ or AUA within their region and were selected based on who would be most relevant to the target audience of this content. Total assets may or may not represent the total assets consulted on by Russell Investments. Performance-based data was not used in selecting listed clients. Copyright © 2020 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any formwithout prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. 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. Securities products and services offered through Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments. First used December 2018. Updated September 2020. RIFIS-22574 (Exp. 04/22) 01-01-286 (09/20) AMS20-2905594 (Exp. 1/14/21) CAR 1019-00353 Investments’ management. Client list selection criteria ° Based on total assets. Model providers surveyed during 4Q 2019 were asked to provide estimated asset levels in models for accounts into which they had visibility. Source: Exhibit 3.02 Top-25 Asset Manager and Third-Party Strategist Providers of Asset Allocation Model Portfolios, The Cerulli Report - U.S. Asset Allocation Model Portfolios 2020. * As of December 31, 2019. **As of September 1, 2020.

$2.5 trillion* assets under advice

19** offices globally

337 investment professionals

35+ manager researchers

2,000+ manager meetings per year

Tax-Managed Model Strategies

Multi-Asset Portfolio See how some of the world's leading managers and strategies can be combined to work for you and your goals.

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

russellinvestments.com

Broad diversification, access to some of the world’s leading managers and strategies, and dynamic portfolio management † all in a single investment portfolio. Multi-Asset Portfolio – Tax-Managed Balanced Model Strategy Tax-Managed Model Strategies

A total tax-managed portfolio solution

The below lists the funds’ money managers whose strategies have been allocated assets. 1 Russell Investment Management, LLC (RIM) oversees the management of all the funds within our portfolios. We may manage 5% or more of fund assets not allocated to money managers, including liquidity reserves and assets managed directly, to effect the funds’ investment strategies and/or to actively manage the funds’ overall exposures to seek to achieve the desired risk/return profiles for the funds.

4 Asset Classes

Managing the managers in the Tax-Managed Balanced Model Strategy SUMMARY OF MANAGER ACTIVITY APR 2003 – SEP 2020 207 Total number of manager changes 124 Total number of hires 84 Total number of terminations

38% U.S. Equity

18% International Equity

5% Alternatives

39% Fixed Income

6 Funds

6% Tax-Managed U.S. Mid & Small Cap 2

32% Tax-Managed U.S. Large Cap 2

18% Tax-Managed International Equity 2

12% Tax-Exempt High Yield Bond

5% Tax-Managed Real Assets 2

27% Tax-Exempt Bond

25 Manager Strategies

Barrow Hanley

Ancora

AllianceBernstein

First Sentier

GSAM

GSAM

GMO

MacKay

MacKay

J.P. Morgan

Cardinal

Intermede 5

SGA

Copeland

Pzena

RREEF America 4

RIM 3

Falcon Point

RWC

RIM 3

Snow

Wellington

Summit Creek

RIM 3

RIM 3

New allocations for the Tax-Managed Model Strategies were effective July 22, 2020

† Russell Investments’ Portfolio Managers are always looking for ways to actively manage risks and capture return opportunities. Our manager research approach allows the Portfolio Managers to quickly identify and change money managers, as needed. They also rely on our forward-looking market views and capital market insights to identify potential new opportunities and integrate them into their portfolios, when and where appropriate. Model Strategies represent target allocations of Russell Investment Company funds; these models are not managed and cannot be invested in directly.

° Based on total assets. Model providers surveyed during 4Q 2019 were asked to provide estimated asset levels in models for accounts into which they had visibility. Source: Exhibit 3.02 Top-25 Asset Manager and Third- Party Strategist Providers of Asset Allocation Model Portfolios, The Cerulli Report - U.S. Asset Allocation Model Portfolios 2020. 1 The list above only includes those money managers whose strategies RIM has allocated Fund assets to as of 9/9/2020. RIM may change a Fund’s asset allocation at any time, including not allocating Fund assets to one or more money manager strategies. For a complete list of a Fund’s money managers, see the prospectus.

2 All money managers in this Fund are non-discretionary money managers. RIM manages this portion of the Fund’s assets based upon model portfolios provided by the managers. 3 RIM manages this portion of the Fund’s assets to effect the Fund’s investment strategies and/or to actively manage the Fund’s overall exposures to seek to achieve the desired risk/return profile for the Fund. 4 RREEF America L.L.C. refers to RREEF America L.L.C. (Chicago, IL), Deutsche Investments Australia Limited (Sydney, Australia) and Deutsche Alternatives Asset Management (Global) Limited (London, UK).

5 Intermede refers to Intermede Investment Partners Limited and Intermede Global Partners Inc. You and your financial and/or tax advisor may work to combine selected funds that differ from the illustrated combinations depending upon individual investment objectives. See last page for additional disclosures.

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 by visiting russellinvestments.com. Please read a prospectus carefully before investing.

Asset class disclosures 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. The degree of correlation among money managers’ investment strategies and the market as a whole will vary as a result of market conditions and other factors. Some money managers will have a greater degree of correlation with each other and with the market than others. General disclosures The investment styles employed by a Fund’s money managers may not be complementary. This concentration may be beneficial or detrimental to Fund’s performance depending upon the performance of those securities and the overall economic environment. The multi-manager approach could increase a Fund’s portfolio turnover rates which may result in higher levels of realized capital gains or losses with respect to a Fund’s portfolio securities, higher brokerage commissions and other transaction costs. Money managers listed are current as of 9/9/2020 and include only money managers whose strategies have been allocated assets. Subject to the Funds’ Board approval, Russell Investment Management, LLC (RIM) has the right to engage or terminate a money manager at any time and without a shareholder vote, based on an exemptive order from the Securities and Exchange Commission. Investments in the Funds are not deposits with or other liabilities of any of the money managers and are subject to investment risk, including loss of Income and principal invested and possible delays in payment of redemption proceeds. The money managers do not guarantee the performance of any Fund or any particular rate of return. Mutual Fund investing involves risks, principal loss is possible. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. Income from funds managed for tax efficiency may be subject to an alternative minimum tax and/or any applicable state and local taxes. Model Strategies are exposed to the specific risks of the funds directly proportionate to their fund allocation. The funds comprising the strategies and the allocations to those funds have changed over time and may change in the future. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. Copyright © 2020 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 are distributed by Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments. Russell Investments’ ownership is comprised 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. First used March 2013. Updated September 2020. RIFIS-21944 (Exp. 06/22) 01-01-332 (09/20) #1-864733 (Exp. 6/21) AMS20-2905483 (Exp. 1/14/21)

russellinvestments.com

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

1 Compelling results:

Historically consistent pre-tax returns with lower-than-average tax drag

As shown by the chart below, over the last three years, ending September 30, 2020: • The average U.S. large cap actively-managed mutual fund surrendered 2.04% to taxes each year, while Russell Investment Company Tax-Managed U.S. Large Cap Fund gave up only 0.21% annually. • The average U.S. small cap actively-managed mutual fund lost 2.13% to taxes each year, while Russell Investment Company Tax-Managed U.S. Mid & Small Cap Fund gave up only 0.07% annually. • Russell Investment Company Tax-Managed International Equity Fund, Tax-Exempt Bond Fund and Tax-Exempt High Yield Bond Fund achieved materially less tax drag than industry averages.

Annual tax drag comparison

Russell Investments’ tax-managed and tax-exempt funds (Class S) vs. Morningstar peer groups

U.S. Equity Large Cap

U.S. Equity Small Cap

International Equity

Municipal Bond

High Yield Municipal Bond

0.0

0.00% -0.02% -0.01%

-0.03%

-0.07%

-0.03%

-0.21%

-0.5

-0.42%

-1.0

-0.97% -1.06%

-1.5

-1.31%

Morningstar peer group (activelymanaged) Morningstar peer group (passivelymanaged) Russell Investment Company fund

-1.43%

-2.0

Return lost to taxes/year

-2.04%

-2.13%

-2.5

Russell Investment Company funds (Class S) and Morningstar peer groups

ASSET CLASS

FUND NAME

TICKER MORNINGSTAR PEER GROUP

U.S. Equity - Large Cap

Tax-Managed U.S. Large Cap Fund

RETSX

Large Blend

U.S. Equity - Small Cap

Tax-Managed U.S. Mid & Small Cap Fund

RTSSX

Small Blend

75% Foreign Large Blend / 25% Diversified Emerging Markets

International Equity

Tax-Managed International Equity Fund

RTNSX

Municipal Bond

Tax-Exempt Bond Fund

RLVSX

Muni National Intermediate

High Yield Municipal Bond Tax-Exempt High Yield Bond Fund

RTHSX

High-Yield Muni

Source: Morningstar. Tax drag is Morningstar’s calculated tax cost ratio. See page 6 for methodology. Passive is defined as being an index fund as reported by Morningstar or part of an ETF Category.

Three reasons to consider Russell Investments’ Tax-Managed and Tax-Exempt Solutions  / Russell Investments

2 /

2 Demonstrated expertise A disciplined tax-managed investment approach with 30+ years’ experience Russell Investments has been helping investors increase their after-tax returns for more than three decades. Our investment approach goes beyond traditional tax-managed investment approaches, seeking to further increase tax efficiency while generating the best possible returns.

Here's how we aim to do it:

Active management We research and select dynamic active money managers, seeking to access skilled stock selection from our decades of rigorous manager research. Centralized trading and implementation We aggregate multiple managers and centralize implementation in a single fund to better coordinate trading activities, and create greater efficiencies. Tax-loss harvesting With a trading desk staffed 24 hours a day by traders averaging more than 15 years of experience across the investment spectrum, we are systematically looking for loss positions in order to offset a taxable gain. Minimize wash sales The benefits of tax-loss harvesting can be negated when sold securities are repurchased within 30 days. It's important to be mindful of this Wash Sale Rule. Our total portfolio approach can help minimize wash sales. Tax-smart turnover–refreshing tax lots A common challenge for after-tax-focused mutual funds and separate accounts is portfolio lock-up —where a continuous process of loss harvesting eventually results in no more losses to harvest. We carefully evaluate the tax lots and engage in thoughtful, tax- smart turnover designed to avoid lock-up. Manage holding period Tax rate on capital gains can differ depending on holding period. We understand this and make it integral in how we manage the assets. Manage a fund's yield Managing yield isn’t about eliminating yield. It’s about understanding the tax rules and maximizing the amount you get to keep.

Russell Investments /  Three reasons to consider Russell Investments’ Tax-Managed and Tax-Exempt Solutions

/ 3

3 Compounding power Taking a long-term view designed to help maximize after-tax wealth With a hypothetical view, you can see how reducing tax drag can impact an investor’s ending wealth. Consider the hypothetical growth of a $500,000 portfolio over 10 years at a 7.5% return each year. If the portfolio’s pre-tax return had a 2% tax drag, that portfolio would have an ending value of just over $850,000. With no tax drag, that portfolio would have an ending value of $1 million. In 20 years, the difference in ending value would be even more: A portfolio with 2% tax drag would be worth nearly $1.5 million, while a portfolio with no tax drag would be worth more than $2.1 million. At Russell Investments, we believe it’s important to take a long-term view when building wealth. At the heart of this belief is the power of compounding returns. And maximizing after-tax returns can play a big role here. Since investors don’t pay taxes until they realize gains, deferring taxes into the future has the potential to significantly compound returns over time.

Hypothetical growth of $500,000 over 20 years at 7.5% return per year

20 Years

$2,124,000

No tax drag

Ending wealth difference in 20 years: $665,000

$1,762,000

1% tax drag

$1,459,000

10 Years

$ 1,031,000 (No tax drag) $ 939,000 (1% tax drag) $ 854,000 (2% tax drag)

2% tax drag

Initial investment: $500,000

0 2 4 6 8 10 12 14 16 18 20 Years 1 3 5 7 9 11 13 15 17 19

Note: This is a hypothetical illustration and not meant to represent an actual investment strategy. It does not reflect fees or other expenses. Taxes will likely be due at some point, they could erode returns, and tax rates could be different when they are. Tax drag is the reduction of potential investment returns due to taxes.

Three reasons to consider Russell Investments’ Tax-Managed and Tax-Exempt Solutions  / Russell Investments

4 /

Russell Investment Company Tax-Managed and Tax-Exempt Mutual Funds Performance (Class S) Annualized returns as of September 30, 2020 Annual fund operating expenses 3 RUSSELL INVESTMENT COMPANY FUNDS – CLASS S LAST 3 MOS % 1 YEAR % 5 YEARS % 10 YEARS % SINCE INCEPTION % INCEPTION DATE TOTAL % NET % 4

Tax-Managed U.S. Large Cap

8.20

14.57

12.40

12.48

7.95

10/7/1996

0.95

0.92

8.20

14.36

12.17

12.21

7.73

—

Pre-liquidation after-tax returns 1

4.86

8.76

9.87

10.39

6.84

Post-liquidation after-tax returns 1,2

Tax-Managed U.S. Mid & Small Cap

5.09

-1.87

6.86

9.57

6.30

11/30/1999 1.29

1.20

5.09

-1.94

6.80

9.16

6.02

Pre-liquidation after-tax returns 1

3.01

-1.05

5.38

7.79

5.26

Post-liquidation after-tax returns 1,2

Tax-Managed International Equity

5.19

-2.51

4.28

—

0.99

6/1/2015

1.16

1.04

5.19

-2.73

4.14

—

0.87

Pre-liquidation after-tax returns 1

3.07

-0.72

3.58

—

1.00

Post-liquidation after-tax returns 1,2

Tax-Exempt Bond

1.47

2.53

3.28

3.15

4.38

9/5/1985

0.58

0.52

1.47

2.51

3.27

3.14

4.38

Pre-liquidation after-tax returns 1

1.14

2.57

3.15

3.05

4.31

Post-liquidation after-tax returns 1,2

Tax-Exempt High Yield Bond

2.08

0.77

5.37

—

5.20

6/1/2015

0.81

0.64

2.08

0.73

5.30

—

5.14

Pre-liquidation after-tax returns 1

1.58

1.84

5.01

—

4.86

Post-liquidation after-tax returns 1,2

Performance quoted represents past performance and should not be viewed as a guarantee of future results. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current to the most recent month-end performance may be obtained by visiting russellinvestments.com/us/funds/performance-prices.

Ask your financial and/or tax advisor to learn more.

IMPORTANT INFORMATION 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. Please read a prospectus carefully before investing. russellinvestments.com

1 After-tax returns are calculated using the historical highest individual federal marginal income tax rates, as well as the 3.8% net investment income tax, and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual

retirement accounts. Returns After Taxes on Distributions may be the same as Returns Before Taxes for the same period if there were no distributions for that period. 2 Return After Taxes on Distributions and Sale of Fund Shares. If a Fund has realized capital losses, the Return After Taxes on Distributions and Sale of Fund Shares assumes that a shareholder has sufficient capital gains of the same character to offset any capital losses on

a sale of fund shares and that the shareholder may therefore deduct the entire capital loss. 3 As of the most recent prospectus, dated 3/1/2020. 4 The Net Annual Operating Expense Ratio may be less than the Total Operating Expense Ratio and represents the actual expenses expected to be borne by shareholders after the application of:

Continued on next page.

Russell Investments /  Three reasons to consider Russell Investments’ Tax-Managed and Tax-Exempt Solutions

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Income from funds managed for tax efficiency may be subject to an alternative minimum tax, and/or any applicable state and local taxes. Small capitalization (small cap) investments generally involve stocks of companies with a market capitalization based on the Russell 2000 ® Index. Investments in small cap, micro cap, and companies with capitalization smaller than the Russell 2000 ® Index are subject to the risks of common stocks, including the risks of investing in securities of large and medium capitalization companies. Investments in smaller capitalization companies may involve greater risks as, generally, the smaller the company size, the greater these risks. In addition, micro capitalization companies and companies with capitalization smaller than the Russell 2000 ® Index may be newly formed with more limited track records and less publicly available information. Investments in global equity may be significantly affected by political or economic conditions and regulatory requirements in a particular country. International markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. Emerging or frontier markets involve exposure to economic structures that are generally less diverse and mature. The less developed the market, the riskier the security. Such securities may be less liquid and more volatile. 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 © 2020 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 Investment Group. It is delivered on an “as is” basis without warranty. Russell Investment Company mutual funds are distributed by Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments. First used May 2019. Updated October 2020. RIFIS-22970 (Exp. 07/22) 01-01-422 (10/20) AMS20-2907236 (Exp. 1/15/21) CAR 0820-02932

Fund Japan Stock, U.S. Fund Latin America Stock, U.S. Fund Miscellaneous Region, U.S. Fund Pacific/Asia ex-Japan Stock, U.S. Fund World Large Stock, U.S. Fund World Small/ Mid Stock The Morningstar categories are as reported by Morningstar and have not been modified. © 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Methodology for Tax Drag: Includes all open-ended investment products – mutual funds/ETFs that are both active and passive. Tax Drag reflects the arithmetic average of Morningstar Tax Cost Ratio. Data includes all share classes and reflects Morningstar category of U.S. Equity and Taxable Bond for equities and fixed income respectively. 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. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. All underlying money managers of Russell Investment Company tax-managed equity funds are non-discretionary money managers. Russell Investment Management, LLC (RIM) manages the respective portions of the fund’s assets based upon model portfolios provided by each firm. Bond investors should carefully consider risks such as interest rate, credit, default and duration 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 subprime mortgages. Generally, when interest rates rise, prices of fixed-income securities fall. Interest rates in the United States are at, or near, historic lows, which may increase a fund’s exposure to risks associated with rising rates.

• for the Tax-Managed U.S. Mid & Small Cap Fund and Tax-Exempt Bond Fund, a contractual transfer agency fee or advisory fee waiver through February 28, 2021. • for the Tax-Managed U.S. Large Cap Fund, Tax-Managed U.S. Mid & Small Cap Fund, Tax-Managed International Equity Fund, and Tax-Exempt High Yield Bond Fund, a contractual cap and reimbursement on expenses through February 28, 2021; These contractual agreements may not be terminated during the relevant periods except at the Board of Trustee's discretion. Details of these agreements are in the current prospectus. Absent these reductions, the funds return would have been lower. Methodology for Universe Construction: • Average of Morningstar’s Tax Cost Ratio for universes as defined. • Averages calculated on a given category. For example, average reflects the arithmetic average of the Morningstar Tax Cost Ratio for the universe/category as listed. Data includes all share classes. • Large Cap/Small Cap determination based upon Morningstar Category. • If fund is indicated by Morningstar as passive or an ETF, the fund is considered to be passively managed. Otherwise, the fund is considered to be actively managed. • Tax Drag: Morningstar calculated Tax Cost Ratio. Morningstar Categories included: • U.S. Equity: U.S. Fund Large Blend, U.S. Fund Large Value, U.S. Fund Large Growth, U.S. Fund Mid-Cap Blend, U.S. Fund Mid- Cap Value, U.S Fund Mid-Cap Growth, U.S. Fund Small Blend, U.S. Fund Small Value, U.S. Fund Small Growth • Fixed Income (Taxable Bond): U.S. Fund Long Government, U.S. Fund Intermediate Government, U.S. Fund Short Government, Intermediate-Term Bond, U.S. Fund Short- Term Bond, U.S. Fund Ultrashort Bond, U.S. Fund Bank Loan, U.S. Fund Stable Value, U.S. Fund Corporate Bond, U.S. Fund Preferred Stock, U.S. Fund High-Yield Bond, U.S. Fund Multisector Bond, U.S. Fund World Bond, U.S. Fund Emerging Markets Bond, U.S. Fund Emerging-Markets Local- Currency Bond, U.S. Fund Nontraditional Bond • International Equity: U.S Fund China Region, U.S. Fund Diversified Emerging Markets, U.S. Fund Diversified Pacific/Asia, U.S. Fund Europe Stock, U.S. Fund Foreign Large Blend, U.S. Fund Foreign Large Growth, U.S. Fund Foreign Large Value, U.S. Fund Foreign Small/Mid Blend, U.S. Fund Foreign Small/Mid Growth, U.S. Fund Foreign Small/ Mid Value, U.S. Fund India Equity, U.S. U.S. Fund Inflation-Protected Bond, U.S. Fund Long-Term Bond, U.S. Fund

russellinvestments.com

Tax-Managed Model Strategies

Time-tested approach designed to maximize after-tax wealth

Russell Investments’ Tax-Managed Model Strategies are strategically diversified portfolio solutions seeking to help tax-sensitive investors grow their after-tax wealth. They are designed to address investors’ wide-ranging investment goals, circumstances and preferences including growth, capital preservation and tax sensitivity. What the Tax-Managed Balanced Model Strategy offers:

MINIMIZED TAX IMPACT ON RETURNS THROUGH ACTIVE TAX MANAGEMENT 96% of before-tax returns retained since inception

TIME-TESTED TAX- MANAGED INVESTMENT APPROACH

MULTI-ASSET PORTFOLIOS WITH A LONG TRACK RECORD

ACCESS TO THE WORLD’S LEADING MANAGERS

35 years of expertise in minimizing tax impact

17 years of a compelling track record

50+ years in manager research

Launched in 2003, our strategically diversified portfolios incorporate 4 asset classes and 6 underlying funds

A single portfolio bringing complementary investment managers who are “hire” ranked based on our rigorous manager research

Strive to maximize after-tax wealth by employing a variety of active tax-management strategies throughout the course of a market cycle

Continuously evolving tax-managed investment strategies and product offering since 1985

(All data as of September 30, 2020)

Our continuous innovation and evolution in tax-managed investing space

1999 Tax-Managed Mid & Small Cap Fund

1985 Tax-Exempt Bond Fund

2014 Enhances trading strategies for improved tax efficiency

2019 Tax-Managed Real Assets Fund

1996 Tax-Managed U.S. Large Cap Fund

2003 Starts offering our first tax- managed model portfolios

2015 Tax-Managed International Equity Fund and Tax-Exempt High Yield Bond Fund

2020

˚ Out of 25 providers. Based on total assets. Model providers surveyed during 4Q 2019 were asked to provide estimated asset levels in models for accounts into which they had visibility. Source: Exhibit 3.02 Top-25 Asset Manager and Third-Party Strategist Providers of Asset Allocation Model Portfolios, The Cerulli Report – U.S. Asset Allocation Model Portfolios 2020.

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

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Annualized returns (%)

Tax-Managed Balanced Model Strategy performance – Class S* (as of 9/30/2020) Tax-Managed Balanced Model Strategy Return After Taxes on Distributions**

Latest three months 5 (%)

Inception date

1 YR

5 YRS

10 YRS Since Inception

4.72 4.72

4.68 4.55

7.08 6.89

6.84 6.60

6.84 6.60

04/01/2003

Annual fund operating expense 6

Annualized returns (%)

Inception date

Underlying fund performance – Class S* (as of 9/30/2020)

Latest three months 5 (%)

Portfolio allocation

1 YR

5 YRS

10 YRS Since Inception

Total Net †

Tax-Managed U.S. Large Cap Fund †,(b) After Tax Return Pre-Liq. / Post-Liq. 2,3 Tax-Managed U.S. Mid & Small Cap Fund †,(a),(b) After Tax Return Pre-Liq. / Post-Liq. 2,3 Tax-Managed International Equity Fund †,(b) After Tax Return Pre-Liq. / Post-Liq. 2,3

8.20

14.57

12.40

12.48

7.95

10/07/1996 0.95% 0.92% 32%

8.20/4.86 14.36/8.76 12.17/9.87 12.21/10.39 7.73/6.84

5.09

-1.87

6.86

9.57

6.30

11/30/1999 1.29% 1.20% 6%

5.09/3.01 -1.94/-1.05 6.80/5.38 9.16/7.79 6.02/5.26

5.19

-2.51

4.28

—

0.99

06/01/2015 1.16% 1.04% 18%

5.19/3.07 -2.73/-0.72 4.14/3.58

—/— 0.87/1.00

4.86

-8.13

—

—

-4.85

Tax-Managed Real Assets Fund †,(b)

06/10/2019 1.28% 1.08% 5%

After Tax Return Pre-Liq. / Post-Liq. 2,3

4.86/2.88 -8.38/-4.67 —/— —/— -5.05/-3.69

1.47

2.53

3.28

3.15

4.38

Tax-Exempt Bond Fund †,(a)

09/05/1985 0.58% 0.52% 27%

After Tax Return Pre-Liq. / Post-Liq. 2,3

1.47/1.14 2.51/2.57 3.27/3.15 3.14/3.05 4.38/4.31

2.08

0.77

5.37

—

5.20

Tax-Exempt High Yield Bond †,(b)

06/01/2015 0.81% 0.64% 12%

After Tax Return Pre-Liq. / Post-Liq. 2,3

2.08/1.58 0.73/1.84 5.30/5.01

—/— 5.14/4.86

Pre-Liq. and Post-Liq.: Pre-Liquidation and Post-Liquidation respectively.

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 by visiting russellinvestments.com. Please read a prospectus carefully before investing. Performance information is historical and does not guarantee future results. Investment return and principal value will fluctuate so that redeemed shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current to the most recent month-end performance for Russell Investments mutual funds is available by visiting: russellinvestments.com/us/funds/performance-prices.

of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Multi-Asset is defined as funds that contain more than one broad asset class (equity, fixed-income, alternatives). Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. Copyright © 2020 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any formwithout prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. 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. Russell Investment Company mutual funds are distributed by Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments. First used: September 2020. Updated October 2020. RIFIS-23214 (Exp. 09/23) 01-01-426 (10/20)

Performance is based on full investment in the model strategy. You and your financial professional may implement your investment differently than the above- referenced strategy. For example, if you allocate up to 2%of your portfolio to cash to facilitate the payment of advisory fees and charges, your actual performance may differ. * Please note that the products listed within this material may or may not be available in Class S for investment. **Return after taxes represents historical model strategy returns after taxes on underlying fund distributions but prior to any sale of underlying fund shares. After- tax returns are calculated using the historical highest individual federal marginal income tax rates and the 3.8%net investment income tax, and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. † The Net Annual Operating Expense Ratio may be less than the Total Operating Expense Ratio and represents the actual expenses expected to be borne by shareholders after application of: (a) a contractual transfer agency fee or advisory fee waiver through February 28, 2021; (b) a contractual cap and reimbursement on expenses through February 28, 2021; These contractual agreements may not be terminated during the relevant periods except at the Board of Trustee's discretion. Details of these agreements are in the current prospectus. Absent these reductions, the fund's return would have been lower. 1 Model Strategy returns represent past performance and are not indicative of any specific investment. Model Strategy returns are calculated by obtaining the weighted monthly returns of the strategy component funds from the prior month-end to the current month-end. These weighted returns are then added to the prior month’s return history and annualized. Performance is calculated based upon the actual historical fund allocations at the beginning

of each month during the periods shown, which may differ from the current allocation. The funds comprising the strategies and the allocations to those funds have changed over time and may change in the future. Actual historical performance has not been adjusted to reflect current fund allocations. Performance of the Model Strategies represent target allocations of Russell Investment Company Class S Share funds. Your financial advisor may have access to a different share class for the underlying funds allocated in the Model Strategies that could be more or less expensive which will impact the returns of the Model Strategies shown. 2 Return after taxes on distributions. If an underlying fund has realized capital losses, the return after taxes on distributions and sale of fund shares may be higher than the return before taxes and the return after taxes on distributions. The calculation of return after taxes on distributions and sale of fund shares assumes that a shareholder has sufficient capital gains of the same character to offset any capital losses on a sale of fund shares and that the shareholder may therefore deduct the entire capital loss. 3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and the 3.8%net investment income tax, and do not reflect the impact of state and local taxes. After-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. 4 Return after taxes on distributions and sales of fund shares. Returns After taxes on Distributions may be the same as Returns Before taxes for the same period if there were no distributions for that period. 5 Not annualized. 6 As of most recent prospectus, dated 3/1/2020. 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

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September 30, 2020 › Seven Tax-Managed Model Strategies - Class S

Seven Tax-Managed Model Strategies

A series of broadly diversified and dynamically managed multi-asset portfolios designed to maximize after-tax return for investor’s taxable dollars. Investors can select the portfolio that best fits their needs and risk tolerance level.

Strategic, tax-efficient management approach Dynamically managed to adapt to changing market conditions Global portfolios diversified across equity, fixed income and alternative investments. Multi-manager approach with access to high conviction, third-party money managers researched by Russell Investments

•

•

•

•

New allocations for the Tax-Managed Model Strategies were effective on July 22, 2020.

As you move from left to right on the graph - increasing risk - there are model strategies that can offer higher return potential. However, as with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns or increase volatility.

Fund allocations 1,2

Seven Tax-Managed Model Strategies

CUSIP

Fund

TICKER

Cons

Mod

ModG

Bal

BalG

Grow

EqGr

782493720 782478408 78249R164 78250F182 782494454 782493837 78249R123

RETSX RTSSX RTNSX RTXSX RFCTX RLVSX RTHSX

9.0 % 3.0 % 5.0 % 4.0 % 6.0 % 56.0 % 17.0 %

18.0 %

24.0 %

32.0 %

39.0 %

43.0 %

54.0 %

Tax-Managed U.S. Large Cap Fund

3.0 %

5.0 %

6.0 %

7.0 %

8.0 %

9.0 %

Tax-Managed U.S. Mid & Small Cap Fund

12.0 %

13.0 %

18.0 %

22.0 %

24.0 %

30.0 %

Tax-Managed International Equity Fund

6.0 % 4.0 %

5.0 % 2.0 %

5.0 %

6.0 %

6.0 %

7.0 %

Tax-Managed Real Assets Fund

-

-

-

- - -

Strategic Bond Fund

44.0 % 13.0 %

37.0 % 14.0 %

27.0 % 12.0 %

16.0 % 10.0 %

11.0 %

Tax-Exempt Bond Fund

8.0 %

Tax-Exempt High Yield Bond Fund

Strategic asset allocation and diversification do not assure profit or protect against loss in declining markets. Please keep in mind that Mutual Fund investing involves risk, principal loss is possible, so please consult with your financial and tax advisors before investing. Model strategies are allocations of Russell Investment Company funds that are not managed and cannot be invested in directly. Depending upon individual investment objectives, you and your financial advisor may want to combine funds that differ from the illustrated combinations. Model Strategies are exposed to the specific risks of the funds directly proportionate to their fund allocation. The funds comprising the strategies and the allocations to those funds have changed over time and may change in the future. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. 1 Model Strategies are exposed to the specific risks of the funds directly proportionate to their fund allocation. The funds comprising the strategies and the allocations to those funds have changed over time and may change in the future. 2 Tax-efficiency is not a stated objective of the Strategic Bond Fund. The Tax-Managed Real Assets Fund is a new fund. There can be no assurance that a new Fund will grow to an economically viable size, in which case the Fund may cease operations. In such an event, investors may be required to liquidate or transfer their investments at an opportune time.

1

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