S Share 7 Tax-Managed Model Strategies eKit - Q320

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

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