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Quarterly Review

Seven Core Model Strategies

Third quarter 2020

Russell Investments / Core Model Strategies

Page

Asset class commentary 3

Core Model Strategy insights 4

Performance review 5

Fund allocations by model strategy 6

Money managers 7

Additional information 8-12

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Contents


WHAT WORKED

Asset class commentary

Global markets continued their recovery in the third quarter, with performance predominantly driven by U.S. large cap growth and emerging market equities. Return seeking fixed income also performed well as spreads continued to tighten.

WHAT DIDN’T WORK

Although lagging global equities, real assets and core fixed income saw positive performance for the third quarter. Real assets became less sensitive to equities, and spreads within core fixed income normalized.

Asset class returns – Third quarter 2020

Capital markets review

1 A basis point (bps) is 1/100 of a percent.Source: Morningstar Direct. Data as of September 30th, 2020.Asset Class Definitions: U.S. Equity = Russell 3000® Index; U.S. Small Cap = Russell 2000® Index; U.S. Large Cap = Russell 1000® Index; Global = MSCI World Net Index; Non-U.S Equity. = MSCI EAFE Net Index; Infrastructure = S&P Global Infrastructure Index; Global High Yield = Bloomberg Barclays Global High Yield Index; Global REITs = FTSE EPRA/NAREIT Developed Index; Cash = FTSE Treasury Bill 3 Month Index; EM Equity = MSCI Emerging Markets Index; U.S. Bonds = Bloomberg Barclays U.S. Aggregate Bond Index; EMD = JPM EMBI Plus Bond Index; Commodities = Bloomberg Commodity Index Total Return.Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Indexes are unmanaged and cannot be invested in directly.

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U.S.

Large

Cap Equity

Commodities U.S.

Small

Cap Equity

Global High

Yield

Emerging

Market

Debt

CashU.S.

BondsGlobal

Real

Estate

Emerging

Market

Equity

Global

InfrastructureNon-U.S.

Equity

EQUITIES ALTERNATIVES FIXED INCOME

Equities > U.S. equities (Russell 1000 Index) finished the quarter up 9.5% amidst easing lock down restrictions and political negotiations for a new stimulus package. Meanwhile, equity markets saw continued style leadership as growth (Russell 1000 Growth Index) outperformed value (Russell 1000 Value Index) by 7.6%, pushing growth outperformance to 35.9% year-to-date. Similarly, market cap leadership also continued as large cap equities (Russell 1000 Index) outperformed small cap equities (Russell 2000 Index) by 4.5%, pushing year-to-date large cap equity outperformance to 15%.

> Non-U.S. equities (MSCI EAFE Index) finished the period up 4.8%, although regional returns were linked closely to success in containing COVID-19. In England, monetary policy was left unchanged and the use of negative rates were ruled out for the near future. Meanwhile, European Union leaders agreed on the framework to a historic €750 billion stimulus plan earlier in the quarter. Elsewhere, France and Germany proposed an additional €500 billion to the Eurozone Recovery Fund.

> Emerging Market equities (MSCI Emerging Markets Index) rose 9.6% in the third quarter. The MSCI China Index was up 12.5% as the People’s Bank of China kept benchmark interest rates (1-year 3.85%, 5-year 4.65%) steady for the fifth straight month. Additionally, U.S./China trade-war tensions flared up again. Elsewhere, the MSCI Turkey Index was down 15.7% as the country’s central bank unexpectedly raised interest rates from 8.25% to 10.25%.

Fixed income

> U.S. bonds finished the period up 0.6%, as lockdown restrictions eased from the end of the second quarter and risk appetite built up strongly in July and August. Over the third quarter, investment-grade credit spreads tightened 19bps to 126 bps, high yield credit spreads tightened 109 bps to 517 bps, and the benchmark 10-year Treasury yield increased two basis point to 0.68%. Across the pond, yields on the benchmark UK 10-year gilt increased 6 bps to 0.23%, and the German 10-year bund decreased 7 bps to -0.52%.

Alternatives > Marketable real assets continued to lag broader global equity markets during the third quarter as the S&P Global Listed Infrastructure Index was up 1.4%, and the FTSE EPRA Nareit Index rose approximately 2.1%. The higher sensitivity of listed real assets relative to equities seen during the first and second quarters returned to more defensiveness in the third quarter, while yields for both asset classes remain attractive.

> Commodity markets underperformed U.S. equities, although kept up with broader equity markets with the Bloomberg Commodities Index up 9.1% for the quarter. Performance was driven by a strong recovery in demand-based metals. Agriculture was supported by increased demand from China, and the increase in WTI crude oil to $39 per barrel from previous lows led to a strong energy sector.

Return (%)

0.6 0.0

1.8

4.3

1.42.1

9.1 9.6

4.8

9.5

4.9

0.0

5.0

10.0

Return (%)

5.4

15.011.6 13.7 13.5

-7.1

0.5 0.6

5.3 4.6

-1.2

10.5

2.49.0

2.56.8 7.0 5.2 4.2 3.6

-19.7-18.3

-1.5

2.04.7

-12.1-8.2

-4.2 -3.1-6.0

-22.0

-14.0

-6.0

2.0

10.0

18.0

YTD 1 Year* 3 Years* 5 Years* 10 Years*

U.S. Equity Non-U.S. Developed Equity Emerging Markets U.S. Bonds Global REITs Commodities

*Annualized


Core Model Strategy insights

THIRD QUARTER 2020 RESULTS

The more aggressive and balanced strategies produced higher results over the quarter, as global equities and

return-seeking fixed income continued to see higher positive results over the third quarter. However, the more

conservative strategies produced lower positive results, largely due to a higher allocation to core fixed income.

Performance

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Fund returns (Class S) – Third quarter 2020

EQUITIES ALTERNATIVES FIXED INCOME

Core Model Strategy returns (Class S) – Third quarter 2020

MULTI-ASSET

1.55

1.26

0.67

1.72

3.34

1.32

1.20

1.12

4.47

9.27

8.02

4.81

8.27

4.29

0.00 2.00 4.00 6.00 8.00 10.00

Strategic Bond

Investment Grade Bond

Short Duration Bond

Unconstrained Total Return

Opportunistic Credit

Multi-Strategy Income

Multi-Asset Growth Strategy

Global Infrastructure

Global Real Estate Securities

Commodity Strategies

Emerging Markets

International Developed Markets

U.S. Strategic Equity

U.S. Small Cap Equity

Return (%)

Historical data shown is not an indicator of future results. Investors should consult with their financial and tax advisors before investing.

2.06

3.153.77

4.294.70

5.21

6.17

0.00

2.00

4.00

6.00

Return (%)

Conservative Equity

Growth

Moderate GrowthModerate

GrowthBalanced Balanced

Growth

Equities > The U.S. Strategic Equity Fund underperformed the S&P 500 Index for the quarter driven by factor positioning, as an overweight to value and underweight to size and momentum detracted from benchmark-relative performance. Within sector positioning, an underweight to health care and an overweight to information technology helped performance.

> The International Developed Markets Fund marginally underperformed the benchmark, driven by sector selection, as an overweight to the financial sector detracted from performance, although an underweight to health care helped offset some losses. Overweight to value companies and the U.K. also detracted from performance.

Fixed income

> The Strategic Bond Fund outperformed the Bloomberg Barclays Aggregate Bond Index for the quarter, largely driven by high yield credit overweights, specifically within CCC-rated bonds. Although, long duration and overweight to U.S. bonds detracted from performance as the yield curve became steeper with the Fed’s announcement that they will allow inflation to rise in the future.

> The Unconstrained Total Return Fund outperformed the benchmark for the quarter, driven by the fund’s core yield engine as credit spreads continued to tighten. Emerging market debt in Chile and allocation to currencies (specifically China and Europe) added to portfolio performance.

Alternatives > The Global Real Estate Fund outperformed its benchmark (FTSE EPRA Nareit Developed Real Estate Index) as stock selection continued to be the biggest performance driver, with strongest results in the net lease, gaming and office sectors. Underweights to underperforming Hong Kong developer companies helped performance as did out-of-benchmark exposures to industrial holdings. Singapore and Australia allocations also contributed positively to performance.

> The Global Listed Infrastructure Fund performed in line with its benchmark (S&P Global Infrastructure Index) for the quarter. Key drivers to third quarter performance came from an underweight to electric utilities and positive security selection in the multi-utilities sector. While an underweight to airport services benefited year-to-date performance, it detracted from third quarter performance.

Multi-asset > Performance from the multi-asset funds’ faced headwinds related small cap and value overweights, and continued performance leadership within large cap and large cap growth names. Additionally, underweights to U.S. equities detracted from performance, though credit overweights within fixed income added to performance for the quarter.


Performance reviewAs of September 30, 2020

Model Strategy performance (%) – Class SANNUALIZED

QuarterlyYear-to-

Date

1

Year

3

Years

5

Years

10

Years

Since

Inception

Inception

Date

Conservative Model Strategy 2.06 2.22 3.94 3.60 4.34 3.93 4.88 1/1/1996

Moderate Model Strategy 3.15 0.53 3.71 3.55 5.22 4.88 7.22 10/1/1985

Moderate Growth Model Strategy 3.77 0.00 3.88 3.59 -- -- 5.53 6/1/2016

Balanced Model Strategy 4.29 -0.96 3.57 3.38 5.93 5.66 7.92 10/1/1985

Balanced Growth Model Strategy 4.70 -2.00 3.18 3.31 -- -- 6.17 6/1/2016

Growth Model Strategy 5.21 -3.09 2.77 3.12 6.74 6.21 8.27 10/1/1985

Equity Growth Model Strategy 6.17 -4.47 2.75 2.89 7.36 6.74 8.50 10/1/1985

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Conservative Model Strategy 9.75 -1.70 6.27 5.17 -1.50 4.13 2.80 8.91 2.15 10.62 20.00 -15.08 5.59 6.63 3.06 4.64 8.31 2.03 4.25 6.04

Moderate Model Strategy 12.78 -3.85 9.84 6.72 -1.95 4.67 6.36 11.09 0.27 12.71 24.18 -23.23 6.65 9.76 4.82 7.54 14.65 -2.61 0.33 3.31

Moderate Growth Model

Strategy14.70 -5.51 12.12 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

Balanced Model Strategy 16.10 -6.70 13.69 7.22 -2.76 4.41 11.86 12.94 -2.39 13.99 26.71 -29.79 6.94 13.12 7.18 11.09 22.17 -7.30 -3.84 0.52

Balanced Growth Model

Strategy17.80 -7.83 15.67 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

Growth Model Strategy 19.40 -9.03 17.89 8.64 -3.58 3.44 16.04 14.09 -4.95 14.62 29.11 -36.02 7.23 15.88 8.71 13.10 28.84 -13.64 -8.29 -3.66

Equity Growth Model Strategy 22.21 -11.23 21.37 10.14 -4.32 3.12 19.68 15.20 -6.81 14.18 31.24 -41.91 7.64 18.89 10.29 15.11 34.40 -18.99-12.14 -7.19

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. 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. Annual Fund Operating Expenses Effective 09/09/2020. †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 theBoard of Trustee's discretion. (c) a contractual agreement to permanently waive the advisory and administrative fees paid by the Fund in an amount equal to the advisory and administrative fees paid by the Subsidiary. This contractual agreement may not be terminated. Details of these agreements are in the current prospectus. Absent these reductions, the fund's return would have been lower. 1 The Fund first issued Class S Shares on October 22, 2007. The returns shown for Class S Shares prior to that date are the returns of the Fund’s Class I Shares. 2 The Emerging Markets Fund and the Short Duration Bond Fund are reported gross of advisory and administrative fees prior to April 1, 1995. 3 The Fund first issued Class S Shares on September 2, 2008. The returns shown for Class S Shares prior to that date are the returns of the Fund’s Class I Shares.

Calendar year returns(%) – Class S

Underlying fund performance (%) – RIC Funds – Class S

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ANNUALIZED Annual Fund Operating

Expenses

QuarterlyYear-to-

Date

1

Year

3

Years

5

Years

10

Years

Since

Inception

Inception

Date Total Net †

U.S. Strategic Equity †(a)(b) 8.27 6.78 14.81 10.46 12.43 -- 12.28 8/6/2012 1.02 0.74

U.S. Small Cap Equity †(a)³ 4.29 -14.23 -8.16 -0.99 5.96 8.77 10.00 12/28/1981 1.16 1.12

International Developed Markets †(a)(b)³ 4.81 -11.38 -3.79 -2.20 3.55 3.64 8.13 1/31/1983 1.01 0.93

Emerging Markets †(a)² 8.02 -7.77 3.04 -1.18 6.78 1.52 5.77 1/29/1993 1.53 1.25

Commodity Strategies †(a)(c) 9.27 -13.18 -8.72 -4.73 -3.60 -6.58 -5.47 6/30/2010 2.07 1.14

Global Infrastructure †(a)(b) 1.12 -14.20 -10.40 -0.09 4.94 6.22 6.22 9/30/2010 1.71 1.07

Global Real Estate Securities †(a) 4.47 -15.60 -14.00 0.23 2.76 4.94 8.73 7/28/1989 1.14 1.10

Opportunistic Credit †(a) 3.34 -2.04 -0.40 1.89 5.15 4.41 4.41 9/30/2010 1.38 0.94

Strategic Bond †(a)(b)³ 1.55 6.85 7.17 5.19 4.33 3.97 5.59 1/29/1993 0.75 0.58

Unconstrained Total Return †(b) 1.72 -4.20 -2.86 1.12 -- -- 1.41 9/22/2016 1.42 0.88

Investment Grade Bond †(a)(b)1 1.26 7.54 7.47 5.23 4.17 3.65 7.60 10/15/1981 0.56 0.48

Short Duration Bond †(a)² 0.67 4.18 4.64 3.36 2.70 2.17 5.89 10/30/1981 0.81 0.58

Multi-Strategy Income †(b) 1.32 -4.33 -1.30 1.04 4.18 -- 2.60 5/1/2015 1.12 0.78

Multi-Asset Growth Strategy †(b)(c) 1.20 -5.09 -2.64 -0.02 -- -- 1.34 3/7/2017 1.22 0.93


Fund allocations by model strategyCore Model Strategies – Class S

Equity

Growth

PO

TE

NT

IAL

RE

TU

RN

RISK

Conservative

Moderate

Moderate

Growth

Balanced

Balanced

Growth

Growth

EQUITIES

ALTERNATIVES

FIXED INCOME

MULTI-ASSET†

CORE MODEL STRATEGY Conservative ModerateModerate

GrowthBalanced

Balanced

GrowthGrowth

Equity

Growth

Equity fund allocation 9% 27% 36% 46% 55% 64% 84%

U.S. Strategic Equity 4% 12% 17% 22% 25% 29% 37%

U.S. Small Cap Equity -- 4% 4% 5% 6% 7% 11%

International Developed Markets 3% 7% 10% 12% 16% 19% 25%

Emerging Markets 2% 4% 5% 7% 8% 9% 11%

Alternatives fund allocation 2% 4% 4% 4% 7% 8% 8%

Commodity Strategies 2% 2% 2% 2% 2% 3% 3%

Global Infrastructure -- -- -- -- 2% 2% 2%

Global Real Estate Securities -- 2% 2% 2% 3% 3% 3%

Fixed Income fund allocation 67% 49% 41% 31% 23% 13% --

Opportunistic Credit -- -- 7% 6% 3% 2% --

Strategic Bond 28% 43% 34% 25% 20% 11% --

Unconstrained Total Return 9% 6% -- -- -- -- --

Investment Grade Bond 24% -- -- -- -- -- --

Short Duration Bond 6% -- -- -- -- -- --

Multi-Asset fund allocation 22% 20% 19% 19% 15% 15% 8%

Multi-Strategy Income 22% 20% 19% -- -- -- --

Multi-Asset Growth Strategy -- -- -- 19% 15% 15% 8%

Effective November 13, 2019, the Core Model Strategies were reallocated. †Multi-Asset is defined as funds that contain more than one broad asset class (equity, fixed income, alternatives).

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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.


Money managersThe tables below list the funds’ money managers whose strategies have been allocated fund assets by Russell Investment Management, LLC

("RIM"). Russell Investment Management, LLC (“RIM”) manages the funds’ liquidity reserves and may manage assets to effect thefunds’

investment strategies and/or to actively manage the funds’ overall exposures to seek to achieve the desired risk/return profile for the funds. This

may constitute 5% or more of fund assets at any given time.

Money manager changes – Third quarter 2020Changes were made in the Emerging Markets Fund. Additional information on these changes can be found on our website.

¹First Eagle Alternative Credit, LLC acquired THL Credit Advisors LLC effective January 31, 2020.****The list above only includes those money managers whose strategies RIM has allocated Fund assets to as of September 30, 2020. Russell Investment Management, LLC (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.*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. Positioning strategies are used to seek excess return and manage portfolio risks by targeting specific exposures. These strategies are used in conjunction with allocations to managers to fully reflect Russell Investments’ strategic and dynamic views with integrated liquidity and risk management.**Cohen & Steers Capital Management, Inc. refers to Cohen & Steers Capital Management, Inc. (New York, NY), Cohen & Steers UK Limited (London, UK) and Cohen & Steers Asia Limited (Central Hong Kong). ̂This money manager has both discretionary and non-discretionary assignments within the Fund. Russell Investment Management, LLC (RIM) manages the

nondiscretionary portion of the Fund's assets based upon a model portfolio provided by the money manager. ***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) ‡This money manager is a non-discretionary manager. Russell Investment Management, LLC (RIM) manages this portion of the fund's assets based upon a model portfolio provided by the money manager. Money managers listed are current as of September 30, 2020. Subject to the Fund’s Board approval, 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. 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 manages. 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.Website hyperlink: https://russellinvestments.com/us/financial-professionals/client-services/manager-and-strategy-updates

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U.S. Strategic Equity

FundRole %

Brandywine‡ Value 30.00%

Jackson Square‡ Growth 30.00%

RIM* Positioning Strategies 40.00%

U.S. Small Cap

Equity FundRole %

Ancora‡ Market-Oriented 19.00%

Boston Partners‡ Value 20.50%

Jacobs Levy Market-Oriented 15.00%

PENN ‡ Market-Oriented 5.00%

Ranger Growth 20.50%


International

Developed Markets

Fund

Role %

Intermede**** Growth 20.00%

Pzena‡ Value 17.50%

Wellington‡ Growth Value 32.50%


Emerging Markets

FundRole %

AllianceBernstein‡ Value 16.00%

Axiom‡ Growth 13.00%

Consilium‡ Market-Oriented 5.00%

Neuberger Berman‡ Growth 17.00%

Numeric Market-Oriented 17.00%

Oaktree Capital‡ Market-Oriented 17.00%


Commodity

Strategies FundRole %

Mellon Capital Global Market-Oriented 23.00%

PIMCO Global Market-Oriented 38.00%


Global

Infrastructure FundRole %

Cohen & Steers**‡ Global Market-Oriented 15.00%

First Sentier‡ Global Market-Oriented 38.00%

Nuveen‡ Global Market-Oriented 37.00%


Global Real Estate

Securities FundRole %

Cohen & Steers**‡ Global Market-Oriented 40.00%

RREEF America***‡ Global Market-Oriented 50.00%


Opportunistic

Credit Fund1Role %

BaringsU.S. and European High

Yield Bonds25.00%

DuPontEM Corporate Debt & U.S.

EM Debt15.00%

Voya Securitized Credit 20.00%


Strategic Bond

FundRole %

Colchester Generalist 14.00%

Schroder Specialist 20.00%

Western Generalist 30.00%


Unconstrained

Total Return FundRole %

H20 Diversified 15.00%

Hermes Yield 30.00%

Putnam Opportunistic 20.00%

First Eagle¹ Yield 20.00%


Investment Grade

Bond FundRole %

Metlife Generalist 22.00%

Schroder Generalist 35.00%


Short Duration

Bond FundRole %

Metlife Generalist 40.00%

Scout Generalist 20.00%


Multi-Strategy

Income FundRole %

Berenberg European equity 7.00%

Boston Partners‡ U.S. Equity-Small Cap Value 6.00%

Cohen & Steers**^

Global Real

Estate/Infrastructure/Preferred

Securities

14.00%

GLG Emerging Market Debt 5.00%

Kopernick‡ Global Equity 6.00%

Oaktree Capital Convertibles 6.00%

PutnamMortgages/Opportunistic Fixed

Income10.00%

Sompo‡ Japan Equity-Large Cap Value 6.00%

First Eagle¹ Bank Loans 14.00%


Multi-Asset Growth

Strategy FundRole %

Berenberg European equity 6.00%

Levin Easterly‡ U.S. Equity Large Cap Value 3.50%

RiverPark‡ U.S. Equity Large Cap Value 4.00%

Atlantic‡ Global Equity-All Cap Value 2.50%

Boston Partners‡ U.S. Equity-Small Cap Value 3.50%

Kopernik‡ Global Equity-All Cap Value 3.50%

Sompo‡ Japan Equity-Large Cap Value 3.50%

Cohen & Steers** Global Real Estate Securities 5.00%

First Sentier‡ Global Listed Infrastructure 5.00%

Hermes High Yield Debt 7.00%

Oaktree Capital Convertibles 6.00%

GLG Emerging Markets Debt 3.50%

PutnamMortgages/Opportunistic Fixed

Income10.00%

First Eagle¹ Bank Loans 7.00%


EQUITY

Emerging Markets Fund

Added: Axiom

https://russellinvestments.com/us/financial-professionals/client-services/manager-and-strategy-updates

https://russellinvestments.com/us/financial-professionals/client-services/manager-and-strategy-updates


Additional information


While overheated tech stocks and U.S. election uncertainty present near-term headwinds, we believe positive

COVID-19 vaccine developments, dovish central banks and an ongoing economic recovery should allow equity

markets to push higher.

Asset class outlook

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Global market outlook

The funds in the Core Model Strategies are dynamically managed to adapt to changing market conditions. As part of

the dynamic management process, the Russell Investments Portfolio Managers take their global market outlook into

account, including Russell Investments’ strategists’ capital market views on the business cycle, valuations, and

market sentiment.

Positioning

Cycle, valuation, sentiment outlook

CYCLEOutlook for the global economy

VALUATIONCurrent asset prices

SENTIMENTInvestor behavior

Global economy in early

recovery phase. Authorities

promise fiscal and monetary

support to maintain momentum.

U.S. market expensive,

especially technology names.

Emerging markets and Europe

attractive; rest of world neutral.

Uncertainty around U.S. elections

and trajectory of COVID-19 offset

by vaccine hopes and improved

economic outlook.

POSITIVE NEUTRALNEUTRAL

Legend: Positive Neutral Negative

*39% Russell 3000® Index, 17% MSCI World Ex-USA Index, 34% Bloomberg Barclays U.S. Aggregate Bond Index, 6% ICE BofA Global High Yield Index, and 4%

FTSE EPRA Nareit Developed Real Estate Index Net.

Equities: Preference for non-U.S. equities

› We prefer non-U.S. equities to U.S. equities. We believe that the second stage of the post-coronavirus economic

recovery should favor undervalued cyclical value stocks over expensive technology and growth stocks.

› Notably, other major markets are overweight cyclical value stocks, relative to the U.S. This should favor cyclical and

value stocks over defensive and growth stocks—and the rest of the world is overweight these stocks, relative to the U.S.

› We like the value in emerging markets equities. China’s early exit from COVID-19 lockdowns and recent stimulus

measures should benefit emerging markets more broadly.

.

Fixed income: Bonds universally expensive

› We see government bonds as universally expensive. Low inflation and dovish central banks should limit the rise in bond

yields during the economic recovery from the lockdowns.

› We have a neutral view on high-yield and investment-grade credit.

Alternatives: Slightly overweight commodities, neutral infrastructure and underweight REITs

› We continue to maintain a slight commodities overweight relative to the simple benchmark* due to characteristics

relative to other risky asset classes.

› Positive outlook on commodities due to global demand increase as economies continue to loosen restriction put in place

to limit spread of COVID-19.


Positioning commentary

On the basis of our current global market outlook, we continue to position the models to be risk managers, not

risk takers. This translates to allocating less exposure to equities and diversifying into fixed income, alternatives

and absolute return strategies.

*39% Russell 3000® Index, 17% MSCI World Ex-USA Index, 34% Bloomberg Barclays U.S. Aggregate Bond Index, 6% ICE BofAML Global High Yield Index, and 4%

FTSE EPRA/NAREIT Developed Index.

Core Model Strategy positioning

The dials below provide guidance of our Balanced Model Strategy’s positioning relative to its simple benchmark.

The black line indicates the estimated exposure of the Balanced Model Strategy as of the most recent quarter-

end, while the simple benchmarks’ exposure to each asset class is indicated by the arrow.

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0%

56% 40% 4% 0%

Under Over Under Over Under Over Under Over

Equities Fixed income Alternatives Absolute return

- + - + - + - +

US EQUITIES CORE FIXED INCOME GLOBAL COMMODITIES CASH

- + - + - +

NON-U.S. DEVELOPED EQUITIES HIGH YIELD GLOBAL INFRASTRUCTURE

- + - + - +

EMERGING UNCONSTRAINED TOTAL RETURN GLOBAL REAL ESTATE SECURITIES

39% 34%

0%

0%

4%

0%

17% 6% 0%

Simple balanced

benchmark exposure

Current Balanced Model

Strategy exposure

+16%+8%-8% 0%-16% +16% +8%-8% 0%-16% +16% +8%-8% 0%-16% +16% +8%-8% 0%-16%

Legend

Balanced Model Strategy positioning vs. simple benchmark*

As of September 30, 2020

Equities > The Balanced Model Strategy’s largest underweight is to U.S. equity, given continued

expensive valuations.

> The model is underweight non-U.S. developed market equities like Europe and Japan, while

also maintaining an out-of-benchmark exposure to Emerging Markets.

Fixed income > The Balanced Model Strategy is underweight exposure to core fixed income. Slightly

overweight high yield bonds, as credit remains an attractive part of the market.

Alternatives > The Balanced Model Strategy currently holds a modest out-of-benchmark exposure to

commodities and is neutral to the benchmark with regards to global infrastructure exposure.

> The model also has a slight underweight to global real estate securities.

Absolute Return > The Balanced Model Strategy has minimal cash exposure and is neutral to the benchmark.


Fund return contribution by model strategy

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Third quarter 2020 contribution to Balanced Model Strategy – Class S

The data below illustrates the contribution of each Russell Investment’s fund to the Model Strategy’s total return

during the quarter. This data does not represent the funds’ total return for the quarter, rather, the measure helps to

identify which funds in the Model Strategies contributed positively and negatively during the quarter, after adjusting

for the funds’ appropriate allocation within each Model Strategy.

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. Contributions of each individual fund component may not sum to the Model’s quarterly return due to rounding.Source: Russell Investments & Morningstar Direct. Data as of September 30, 2020.

CO

NT

RIB

UT

ION

TO

TO

TA

L R

ET

UR

N %

CORE MODEL STRATEGY Conservative ModerateModerate

GrowthBalanced

Balanced

GrowthGrowth

Equity

Growth

Model Quarterly Return (%) 2.06 3.15 3.77 4.29 4.70 5.21 6.17

Equity fund contribution (%) 0.65 1.85 2.50 3.22 3.77 4.37 5.66

U.S. Strategic Equity Fund 0.34 1.00 1.42 1.84 2.08 2.41 3.07

U.S. Small Cap Equity Fund -- 0.18 0.18 0.22 0.26 0.30 0.48

International Developed Markets Fund 0.15 0.35 0.50 0.60 0.79 0.94 1.23

Emerging Markets Fund 0.16 0.32 0.40 0.56 0.64 0.72 0.88

Alternative fund contribution (%) 0.19 0.28 0.28 0.28 0.34 0.43 0.43

Commodity Strategies Fund 0.19 0.19 0.19 0.19 0.19 0.28 0.28

Global Infrastructure Fund -- -- -- -- 0.02 0.02 0.02

Global Real Estate Securities Fund -- 0.09 0.09 0.09 0.13 0.13 0.13

Fixed income fund contribution (%) 0.93 0.76 0.75 0.58 0.41 0.24 0.00

Opportunistic Credit Fund -- -- 0.23 0.20 0.10 0.07 --

Strategic Bond Fund 0.43 0.66 0.52 0.38 0.31 0.17 --

Unconstrained Total Return Fund 0.16 0.10 -- -- -- -- --

Investment Grade Bond Fund 0.30 -- -- -- -- -- --

Short Duration Bond Fund 0.04 -- -- -- -- -- --

Multi-asset fund contribution 0.30 0.26 0.25 0.22 0.17 0.17 0.09

Multi-Strategy Income Fund 0.30 0.26 0.25 -- -- -- --

Multi-Asset Growth Strategy Fund -- -- -- 0.22 0.17 0.17 0.09

1.8

0.6 0.60.4

0.2 0.2 0.2 0.2 0.1

4.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Russell Inv USStrategic Equity

S

Russell InvInternationalDevd Mkts S

Russell InvEmergingMarkets S

Russell InvStrategic Bond

S

Russell InvMulti-Asset

Growth Strat S

Russell Inv USSmall CapEquity S

Russell InvOpportunistic

Credit S

Russell InvCommodityStrategies S

Russell InvGlobal Real

Estate Secs S

RussellBalanced

Model


0%

5%

10%

0% 5% 10% 15% 20% 25%

Annualiz

ed T

ota

l R

etu

rn

Annualized Standard Deviation

RISK & RETURN STATISTICSSince Inception** as of September 30th, 2020

Return = 7.92%

Risk = 12.22%

Return = 8.27%

Risk = 16.67%

Return = 8.50%

Risk = 23.41%

Return = 7.22%

Risk = 8.42% Return = 5.53%

Risk = 10.42%

Return = 6.17%

Risk = 14.52%

Statistics by modelCore Model Strategies – Class S

Risk & return statisticsSTANDARD DEVIATION† (%) SHARPE RATIO†

BEST

QUARTER* (%)WORST

QUARTER* (%)

MAX

GAIN* (%)

MAX

DRAWDOWN†*

(%)3

YEARS

5

YEARS

10

YEARS

3

YEARS

5

YEARS

10

YEARS

Conservative Model

Strategy5.75 4.97 4.40 0.36 0.64 0.76 7.96 -7.22 48.42 -7.78

Moderate Model

Strategy8.47 7.10 6.49 0.26 0.58 0.67 10.98 -12.18 63.57 -12.18

Moderate Growth Model

Strategy10.11 -- -- 0.24 -- -- -- -- -- --

Balanced Model

Strategy11.58 9.79 9.09 0.21 0.52 0.58 14.32 -16.93 80.73 -16.93

Balanced Growth Model

Strategy12.90 -- -- 0.19 -- -- -- -- -- --

Growth Model Strategy 14.35 12.13 11.40 0.17 0.50 0.53 16.45 -20.90 96.12 -20.90

Equity Growth Model

Strategy16.90 14.17 13.26 0.16 0.49 0.51 18.76 -24.23 112.58 -24.23

*Over the trailing 10 year period (July 1, 2009 to September 30, 2020). †See last page for definitions. Model statistics

Equity

AVERAGE

MARKET CAP

(MIL)

P/E† P/B† P/S† P/CF† LONG-TERM

EARNINGS† (%)

HISTORICAL

EARNINGS† (%)

Conservative Model Strategy $23,720.01 17.28 1.41 1.05 6.23 10.09 0.35

Moderate Model Strategy $24,599.82 18.91 1.65 1.40 7.39 9.90 2.04

Moderate Growth Model Strategy $26,624.89 19.26 1.72 1.41 7.61 9.92 2.41

Balanced Model Strategy $26,968.05 19.41 1.78 1.38 7.78 9.92 2.55

Balanced Growth Model Strategy $26,520.84 19.55 1.77 1.44 7.76 9.77 2.45

Growth Model Strategy $27,045.92 19.54 1.78 1.42 7.75 9.81 2.51

Equity Growth Model Strategy $26,599.72 19.56 1.80 1.41 7.75 9.90 2.82

S&P 500 Index $105,009.98 23.30 3.17 2.30 12.56 9.01 11.35

Fixed

Income

DURATION*AVERAGE CREDIT

QUALITY

AVERAGE

COUPON

Conservative Model Strategy 5.39 BBB 2.84

Moderate Model Strategy 6.04 BBB 3.02

Moderate Growth Model Strategy 6.54 BB 3.28

Balanced Model Strategy 6.51 BB 3.11

Balanced Growth Model Strategy 6.59 BBB 3.00

Growth Model Strategy 6.56 BB 2.73

Equity Growth Model Strategy -- -- 1.62

BbgBarc U.S. Agg Bond Index** 6.12 AA1/AA2 2.90

Source: Morningstar Direct. Data as of September 30, 2020.

*Duration reflects the Average Effective Duration, except for the Bloomberg Barclays (BbgBarc) U.S. Aggregate Bond Index which reflects Modified Adjusted Duration.

**All data quoted for the Bloomberg Barclays (BbgBarc) U.S. Aggregate Bond Index is sourced from Barclays Live. Data as of September 30, 2020.

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CONSERVATIVE

MODERATEBALANCED

GROWTH

EQUITY

GROWTH

Return = 4.88%

Risk = 4.82%

EQUITIES

ALTERNATIVES

FIXED INCOME

MULTI-ASSET

Performance information is historical and does not guarantee future results.

**Risk & Return data illustrated is since inception of each Model Strategy: Conservative Model = 1/1/1996; Moderate, Balanced, Growth, & Equity Growth

Models = 10/1/1985; Moderate Growth & Balanced Growth Models = 6/1/2016

MODERATE

GROWTH

BALANCED

GROWTH


Core 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.

Core 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.

Performance of the Core Model Strategies represent target allocations of Russell Investment Company Class S Share funds. Yourfinancial advisor may have access to a different share class for the underlying funds allocated in the Core Model Strategies that could be more or less expensive which will impact the returns of the Core Model Strategies shown.

Performance is based on full investment in the core model strategy. You and your financial professional may implement your investment in a different manner than the above-referenced strategy. For example, if you allocate up to 2% of your portfolio in a money market mutual fund to facilitate the payment of advisory fees and charges, your actual performance may differ.

Please remember that all investments carry some level or 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.

Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

Mutual fund investing involves risk, principal loss is possible.

Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities, particularly if the investments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or sectors affecting a particular industry or commodity and international economic, political and regulatory developments. The use of leveraged commodity-linked derivatives creates an opportunity for increased return, but also creates the possibility for a greater loss. The Commodity Strategies Fund may invest in derivatives, including futures, options, forwards, and swaps.

Investments in derivatives may cause the Fund’s losses to be greater than if it invests only in conventional securities and can cause the Fund to be more volatile. Derivatives involve risks different from, or possibly greater than, the risks associated with other investments. The Fund’s use of derivatives may cause the Fund’s investment returns to be impacted by the performance of securities the Fund does not own and result in the Fund’s total investment exposure exceeding the value of its portfolio.

Alternative strategies may be subject to risks related to equity securities; fixed income securities; non-U.S. and emerging markets securities; currency trading, which may involve instruments that have volatile prices, are illiquid or create economic leverage;commodity investments; illiquid securities; and derivatives including futures, options, forwards and swaps.

Investments in infrastructure-related companies have greater exposure to adverse economic, financial, regulatory, and political risks, including governmental regulations. Global securities may be significantly affected by political or economic conditions and regulatory requirements in a particular country.

Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks. Investments in international markets can involve risks of currency fluctuation, political and economic instability, different accounting standards, and foreign taxation.

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 sub-prime mortgages. Generally, wheninterest 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. Investment in non-U.S. and emerging market securities is subject to currency fluctuations and to economic and political risks associated with such foreign countries.

Certain underlying Funds within the model strategies may invest in derivatives, including futures, options, forwards and swaps. Investments in derivatives may cause the Fund’s losses to be greater than if it invests only in conventional securities and can cause the Fund to be more volatile. Derivatives involve risks different from, or possibly greater than, the risks associated with other investments. The Fund’s use of derivatives may cause the Fund’s investment returns to be impacted by the performance of securities the Fund does not own and result in the Fund’s total investment exposure exceeding the value of its portfolio.

Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.

The S&P 500 Index is a free-float capitalization-weighted index of the prices of 500 large-cap common stocks actively traded in the United States.

The Russell 1000® Index is an index of 1000 issues representative of the U.S. large capitalization securities market.

The Russell 2000® Index is an index of 2000 issues representative of the U.S. small capitalization securities market.

The Russell 3000® Index is a U.S. stock index which includes the 3000 largest U.S. stocks as measured by market capitalization.

The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.

The MSCI World Ex-USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries--excluding the United States.

The MSCI Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 21 emerging economies.

Bloomberg Commodity Index Total Return, which is a broadly diversified collateralized commodities futures index comprised of futures contracts on 22 physical commodities.

FTSE EPRA Nareit Developed Real Estate Index is a global market capitalization weighted index composed of listed real estate securities in the North American, European and Asian real estate markets.

The Bloomberg Barclays U.S. Aggregate Bond Index is an index, with income reinvested, generally representative of intermediate-term government bonds, investment grade corporate debt securities and mortgage-backed securities.

The Bloomberg Barclays Global High Yield Index is an unmanaged index that provides a broad-based measure of the global high-yield fixed income markets.

The Citigroup 1-3 month T-Bill Index measures monthly return equivalents of yield averages that are not market to market.

The JP Morgan Emerging Markets Bond Index Plus tracks total returns for traded external debt instruments (external meaning foreign currency denominated fixed income) in the emerging markets

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The S&P Global Infrastructure Index is designed to track 75 companies from around the world chosen to represent the listed infrastructure industry while maintaining liquidity and tradability. To create diversified exposure, the index includes three distinct infrastructure clusters: energy, transportation, and utilities.

MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 23 developed market country indexes: Australia,Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand,Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

The ICE BofA Global High Yield Index tracks the performance of USD, CAD, GBP and EUR denominated below investment grade corporate debt publicly issued in the major domestic or eurobond markets.

KEY TERMS:

Standard deviation defines how widely returns varied from a daily average over a given period of time. A higher standard deviation means a more volatile Fund. For example, a Fund with a standard deviation of 6 and an average annual return of 10% saw annualized monthly returns fall within 6 percentage points of that average (or between 4% and 16%) two-third of the time.

Sharpe ratio is a calculation that reflects the reward per each unit of risk in a portfolio. The higher the ratio, the better the Fund's risk-adjusted return.

Max drawdown is the peak to trough decline during a specific record period of an investment or fund. It is usually quoted as thepercentage between the peak to the trough.

Price/projected earnings (P/E) for a stock is the ratio of the company’s most recent month-end share price to the company’s estimated earnings per share (EPS) for the current fiscal year. If a third-party estimate for the current year EPS is not available, Morningstar will calculate an internal estimate based on the most recently reported EPS and average historical earnings growth rates. Price/projected earnings is one of the five value factors used to calculate the Morningstar Style Box. For portfolios, this data point is calculated by taking an asset-weighted average of the earnings yields (E/P) of all the stocks in the portfolio and then taking the reciprocal of the result.

Price/book (projected) (P/B) for a stock is the ratio of the company’s most recent month-end share price to the company’s estimated book value per share (BPS) for the current fiscal year. Book value is the total assets of a company, less total liabilities. Morningstar calculates internal estimates for the current year BPS based on the most recently reported BPS and average historical book valuegrowth rates. Price/book (projected) is one of the five value factors used to calculate the Morningstar Style Box. For portfolios, this data point is calculated by taking an asset-weighted average of the book value yields (B/P) of all the stocks in the portfolio and then taking the reciprocal of the result.

Price/sales (projected) (P/S) for a stock is the ratio of the company’s most recent month-end share price to the company’s estimated sales per share (SPS) for the current fiscal year. Morningstar calculates internal estimates for the current year SPS based on the most recently reported SPS and average historical sales growth rates. Price/sales (projected) is one of the five value factors used to calculate the Morningstar Style Box. For portfolios, this data point is calculated by taking an asset-weighted average of the sales yields (S/P) of all the stocks in the portfolio and then taking the reciprocal of the result.

Price/cash flow (projected) (P/CF) for a stock is the ratio of the company’s most recent month-end share price to the company’s estimated cash flow per share (CPS) for the current fiscal year. Cash flow measures the ability of a business to generate cash and it acts as a gauge of liquidity and solvency. Morningstar calculates internal estimates for the current year CPS based on the most recently reported CPS and average historical cash flow growth rates. Price/cash flow (projected) is one of the five value factors used to calculate the Morningstar Style Box. For portfolios, this data point is calculated by taking an asset-weighted average of the cash flow yields (C/P) of all the stocks in the portfolio and then taking the reciprocal of the results.

Long-Term Earnings Growth (%) is the estimated earnings growth over the next 5 years.

Historical Earnings Growth (%) is one of the factors in determining a portfolios growth orientation score. The rate is calculated by averaging the growth rate for up to the previous 4 years for each stock in the portfolio. Once each stock’s rate has been ca lculated the value for the portfolio is calculated.

12 Month Weighted Average Distribution Yield is the weighted average of the sum of all fund’s total trailing 12-month interest and dividend payments divided by the last month’s ending share price (NAV) plus any capital gains distributed over the same period.

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.

Copyright ©2020 Russell Investments Group, LLC. All rights reserved.

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: October 2020

RIFIS 23330

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

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