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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03153

Russell Investment Company

(Exact name of registrant as specified in charter)

1301 2nd Avenue 18th Floor, Seattle Washington 98101
(Address of principal executive offices) (Zip code)

Mary Beth R. Albaneze, Secretary and Chief Legal Officer
1301 2nd Avenue
18th Floor
Seattle, Washington 98101
206-505-4846

_____________________________________________________________
(Name and address of agent for service)

Registrant's telephone number, including area code: 800-787-7354

Date of fiscal year end: October 31

Date of reporting period: November 1, 2015 – July 31, 2016

 

Item 1. Schedule of Investments



 

Russell Investment
Company

Russell Investment Company is a
series investment company with
40 different investment portfolios
referred to as Funds. This
Quarterly Report reports on 26 of
these Funds.

 

Russell Investment Company

Russell Funds

Quarterly Report

July 31, 2016 (Unaudited)

Table of Contents

Page
Russell U.S. Core Equity Fund 3
Russell U.S. Defensive Equity Fund 8
Russell U.S. Dynamic Equity Fund 15
Russell U.S. Strategic Equity Fund 21
Russell U.S. Large Cap Equity Fund 28
Russell U.S. Mid Cap Equity Fund 33
Russell U.S. Small Cap Equity Fund 39
Russell International Developed Markets Fund 50
Russell Global Equity Fund 67
Russell Emerging Markets Fund 80
Russell Tax-Managed U.S. Large Cap Fund 96
Russell Tax-Managed U.S. Mid & Small Cap Fund 100
Russell Tax-Managed International Equity Fund 108
Russell Global Opportunistic Credit Fund 122
Russell Strategic Bond Fund 149
Russell Investment Grade Bond Fund 184
Russell Short Duration Bond Fund 208
Russell Tax Exempt High Yield Bond Fund 223
Russell Tax Exempt Bond Fund 234
Russell Commodity Strategies Fund 251
Russell Global Infrastructure Fund 257
Russell Global Real Estate Securities Fund 266
Russell Multi-Strategy Income Fund 275
Russell Strategic Call Overwriting Fund 298
Select U.S. Equity Fund  304
Select International Equity Fund 316
Notes to Schedules of Investments 330
Notes to Quarterly Report 332
Shareholder Requests for Additional Information 353

 

 

Russell Investment Company - Russell Funds

Copyright © Russell Investments 2016. 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.

Fund objectives, risks, charges and expenses should be carefully considered before in-
vesting. A prospectus containing this and other important information must precede or
accompany this material. Please read the prospectus carefully before investing.

Securities distributed through Russell Investments Financial Services, LLC, member FINRA and part
of Russell Investments.

 

Russell Investment Company
Russell U.S. Core Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 96.9%       Ulta Salon Cosmetics & Fragrance, Inc.(Æ) 10,360 2,706
Consumer Discretionary - 14.0%       Under Armour, Inc. Class A(Æ) 17,857 705
Aaron's, Inc. Class A 20,200 484 Viacom, Inc. Class B 3,591 163
Amazon.com, Inc.(Æ) 9,624 7,303 Visteon Corp.(Æ) 3,300 231
AutoZone, Inc.(Æ) 110 90 Wal-Mart Stores, Inc. 126,114 9,203
Brinker International, Inc. 7,900 372 Walt Disney Co. (The) 8,142 781
Carnival Corp. 7,779 363 Whirlpool Corp. 10,300 1,981
Chipotle Mexican Grill, Inc. Class A(Æ) 5,631 2,388 Wynn Resorts, Ltd. 9,492 930
Comcast Corp. Class A 27,176 1,828 Yum! Brands, Inc. 2,606 233
Cooper Tire & Rubber Co. 1,300 43       102,279
Costco Wholesale Corp. 15,013 2,511        
Deckers Outdoor Corp.(Æ) 20,498 1,353 Consumer Staples - 7.8%      
Delphi Automotive PLC 14,860 1,008 Altria Group, Inc. 100,972 6,836
Dillard's, Inc. Class A 7,943 538 Bunge, Ltd. 9,600 632
Dollar Tree, Inc.(Æ) 12,516 1,205 Coca-Cola Co. (The) 71,541 3,121
Estee Lauder Cos., Inc. (The) Class A 10,800 1,003 Colgate-Palmolive Co. 35,632 2,652
Fitbit, Inc. Class A(Æ) 2,200 30 Constellation Brands, Inc. Class A 7,076 1,165
Ford Motor Co. 99,600 1,261 Core-Mark Holding Co., Inc. 1,600 78
Gap, Inc. (The) 82,800 2,135 CVS Health Corp. 35,366 3,279
General Motors Co. 106,318 3,353 Dr Pepper Snapple Group, Inc. 10,100 995
Goodyear Tire & Rubber Co. (The) 28,709 823 Energizer Holdings, Inc.(Æ) 2,900 245
Home Depot, Inc. (The) 25,277 3,494 Flowers Foods, Inc. 3,900 72
Johnson Controls, Inc. 33,000 1,515 General Mills, Inc. 21,476 1,544
Kohl's Corp. 4,225 176 Hershey Co. (The) 6,800 753
Lennar Corp. Class A 68,533 3,207 Hormel Foods Corp. 34,100 1,274
Lowe's Cos., Inc. 54,826 4,511 JM Smucker Co. (The) 6,890 1,062
Macy's, Inc. 33,408 1,197 Kellogg Co. 24,336 2,013
Marriott International, Inc. Class A 4,682 336 Kimberly-Clark Corp. 2,366 307
McDonald's Corp. 17,069 2,008 Kraft Heinz Co. (The) 11,384 984
MGM Resorts International(Æ) 58,472 1,402 Mondelez International, Inc. Class A 137,823 6,061
Michael Kors Holdings, Ltd.(Æ) 31,132 1,610 PepsiCo, Inc. 44,054 4,798
Murphy USA, Inc.(Æ) 800 61 Philip Morris International, Inc. 53,738 5,388
Newell Brands, Inc. 59,530 3,123 Pinnacle Foods, Inc. 30,511 1,532
News Corp. Class A 91,800 1,191 Procter & Gamble Co. (The) 74,390 6,367
Nike, Inc. Class B 91,591 5,083 Reynolds American, Inc. 1,819 91
Nordstrom, Inc. 2,660 118 Sanderson Farms, Inc. 3,600 315
NVR, Inc.(Æ) 694 1,183 Sysco Corp. 31,833 1,649
Office Depot, Inc. 21,900 76 TreeHouse Foods, Inc.(Æ) 14,698 1,517
Panera Bread Co. Class A(Æ) 4,670 1,024 United Natural Foods, Inc.(Æ) 4,200 210
Priceline Group, Inc. (The)(Æ) 1,680 2,269 Walgreens Boots Alliance, Inc. 3,405 270
PulteGroup, Inc. 19,418 411 Whole Foods Market, Inc. 68,415 2,085
PVH Corp. 15,155 1,532       57,295
Ralph Lauren Corp. Class A 664 65        
Ross Stores, Inc. 28,000 1,731 Energy - 6.7%      
Royal Caribbean Cruises, Ltd. 16,477 1,194 Anadarko Petroleum Corp. 30,952 1,688
Scripps Networks Interactive, Inc. Class A 8,667 573 Antero Resources Corp.(Æ) 30,900 809
Service Corp. International 2,272 63 Apache Corp. 28,172 1,479
Signet Jewelers, Ltd. 4,623 406 Baker Hughes, Inc. 5,500 263
Six Flags Entertainment Corp. 6,200 350 BP PLC - ADR 140,443 4,831
Starbucks Corp. 48,154 2,795 Canadian Natural Resources, Ltd. 71,065 2,148
Target Corp. 68,053 5,126 Chesapeake Energy Corp.(Æ) 38,000 206
Thomson Reuters Corp. 3,948 166 Chevron Corp. 17,099 1,752
Thor Industries, Inc. 6,200 475 ConocoPhillips 73,746 3,010
Time Warner, Inc. 22,947 1,759 Core Laboratories NV 12,660 1,479
Time, Inc. 42,500 694 CVR Energy, Inc. 11,000 163
TJX Cos., Inc. 47,612 3,891 Devon Energy Corp. 71,746 2,747
Toll Brothers, Inc.(Æ) 8,631 242 Exxon Mobil Corp. 91,679 8,155
Toyota Motor Corp. - ADR 11,657 1,301 First Solar, Inc.(Æ) 4,700 220
Tribune Media Co. Class A 5,440 202 Helmerich & Payne, Inc. 9,536 591
Tupperware Brands Corp. 11,094 695 Hess Corp. 3,805 204

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Core Equity Fund 3

 

Russell Investment Company
Russell U.S. Core Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
HollyFrontier Corp. 6,500 165 Fifth Third Bancorp 13,041 247
Laredo Petroleum, Inc.(Æ) 18,200 182 FleetCor Technologies, Inc.(Æ) 27,339 4,147
Magna International, Inc. Class A 23,286 898 Franklin Resources, Inc. 5,398 195
Marathon Oil Corp. 42,800 584 Genworth Financial, Inc. Class A(Æ) 131,500 376
Marathon Petroleum Corp. 19,523 769 Goldman Sachs Group, Inc. (The) 4,110 653
Nabors Industries, Ltd. 37,300 336 Hanover Insurance Group, Inc. (The) 11,000 906
National Oilwell Varco, Inc. 2,422 78 Hartford Financial Services Group, Inc. 13,851 552
NOW, Inc.(Æ) 6,000 110 HCP, Inc.(ö) 6,009 236
Occidental Petroleum Corp. 60,771 4,542 Huntington Bancshares, Inc. 23,150 220
PBF Energy, Inc. Class A 5,200 116 Intercontinental Exchange, Inc. 2,871 758
Phillips 66 40,458 3,077 Jones Lang LaSalle, Inc. 2,700 296
Pioneer Natural Resources Co. 17,089 2,778 JPMorgan Chase & Co. 137,607 8,803
QEP Resources, Inc.(Æ) 31,700 577 KeyCorp 172,273 2,016
Schlumberger, Ltd. 34,249 2,758 KKR & Co., LP 160,355 2,315
Spectra Energy Corp. 7,179 258 Leucadia National Corp. 7,785 142
Tesoro Corp. 2,208 168 Lincoln National Corp. 7,400 323
Valero Energy Corp. 15,700 821 Loews Corp. 113,900 4,707
Weatherford International PLC(Æ) 39,800 226 M&T Bank Corp. 7,560 866
Whiting Petroleum Corp.(Æ) 10,600 78 Markel Corp.(Æ) 356 338
World Fuel Services Corp. 10,400 495 Marsh & McLennan Cos., Inc. 4,971 327
      48,761 MasterCard, Inc. Class A 53,094 5,057
        MetLife, Inc. 96,146 4,109
Financial Services - 20.2%       Morgan Stanley 43,357 1,246
Aflac, Inc. 27,828 2,011 Navient Corp. 11,775 167
Alleghany Corp.(Æ) 500 272 New York Community Bancorp, Inc. 10,846 157
Alliance Data Systems Corp.(Æ) 6,183 1,432 Northern Trust Corp. 32,199 2,176
Allied World Assurance Co. Holdings AG 9,750 400 PNC Financial Services Group, Inc. (The) 69,186 5,718
Allstate Corp. (The) 35,669 2,437 Popular, Inc. 25,325 853
Ally Financial, Inc. 17,700 319 Principal Financial Group, Inc. 12,800 597
American Capital Agency Corp.(ö) 18,581 364 Prudential Financial, Inc. 20,314 1,529
American Express Co. 62,000 3,996 Public Storage(ö) 1,295 309
American International Group, Inc. 17,811 970 Regions Financial Corp. 218,375 2,002
Ameriprise Financial, Inc. 19,717 1,890 Reinsurance Group of America, Inc. Class A 10,400 1,032
Aspen Insurance Holdings, Ltd. 23,000 1,057 Santander Consumer USA Holdings, Inc.(Æ) 107,849 1,185
AvalonBay Communities, Inc.(ö) 3,430 637 Signature Bank(Æ) 1,589 191
Axis Capital Holdings, Ltd. 6,200 345 Simon Property Group, Inc.(ö) 1,689 383
Bank of America Corp. 689,886 9,996 SL Green Realty Corp.(ö) 4,310 508
Bank of New York Mellon Corp. (The) 56,140 2,212 State Street Corp. 102,963 6,773
BB&T Corp. 13,931 514 SunTrust Banks, Inc. 15,291 647
Berkshire Hathaway, Inc. Class B(Æ) 40,257 5,808 Synchrony Financial 62,694 1,748
BlackRock, Inc. Class A 688 252 TFS Financial Corp. 16,197 295
Blackstone Group, LP (The) 71,980 1,932 Travelers Cos., Inc. (The) 7,116 827
Capital One Financial Corp. 7,500 503 Two Harbors Investment Corp.(ö) 79,174 693
CBOE Holdings, Inc. 1,700 117 US Bancorp 37,892 1,598
Chubb, Ltd. 3,137 393 Visa, Inc. Class A 69,670 5,438
Citigroup, Inc. 116,384 5,099 Voya Financial, Inc. 53,693 1,376
Citizens Financial Group, Inc. 86,907 1,941 Wells Fargo & Co. 259,620 12,454
CME Group, Inc. Class A 7,108 727 Xenia Hotels & Resorts, Inc.(ö) 6,300 113
CNA Financial Corp. 11,700 372 XL Group, Ltd. 86,900 3,008
Comerica, Inc. 36,200 1,638       147,887
Cullen/Frost Bankers, Inc. 2,736 186        
Discover Financial Services 3,455 196 Health Care - 13.5%      
East West Bancorp, Inc. 6,800 233 Abbott Laboratories 40,462 1,811
Endurance Specialty Holdings, Ltd. 17,700 1,197 AbbVie, Inc. 24,340 1,612
Equifax, Inc. 8,377 1,110 Aetna, Inc. 1,240 143
Equinix, Inc.(ö) 6,022 2,245 Allergan PLC(Æ) 8,311 2,102
Equity Residential(ö) 19,255 1,309 Amgen, Inc. 16,522 2,842
Everest Re Group, Ltd. 6,890 1,302 Anthem, Inc. 15,590 2,048
FactSet Research Systems, Inc. 4,340 746 Baxter International, Inc. 4,568 219
Fidelity National Information Services, Inc. 14,045 1,117 Becton Dickinson and Co. 1,837 323

 

See accompanying notes which are an integral part of this quarterly report.

4 Russell U.S. Core Equity Fund

 

Russell Investment Company
Russell U.S. Core Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Biogen, Inc.(Æ) 2,637 765 WestRock Co. 1,526 66
Bio-Rad Laboratories, Inc. Class A(Æ) 6,160 894       22,245
Boston Scientific Corp.(Æ) 40,100 974        
Bristol-Myers Squibb Co. 73,017 5,462 Producer Durables - 9.9%      
Cardinal Health, Inc. 24,500 2,048 3M Co. 3,446 615
Centene Corp.(Æ) 1,200 85 Accenture PLC Class A 28,174 3,178
Cerner Corp.(Æ) 47,535 2,966 AECOM(Æ) 63,330 2,248
DexCom, Inc.(Æ) 13,329 1,229 AerCap Holdings NV(Æ) 42,220 1,541
Edwards Lifesciences Corp.(Æ) 21,683 2,483 American Airlines Group, Inc. 67,899 2,410
Eli Lilly & Co. 36,434 3,020 Ametek, Inc. 1,742 82
Express Scripts Holding Co.(Æ) 4,483 341 Automatic Data Processing, Inc. 28,078 2,498
Gilead Sciences, Inc. 22,479 1,786 B/E Aerospace, Inc. 14,823 709
Haemonetics Corp.(Æ) 2,930 89 Boeing Co. (The) 2,015 269
HCA Holdings, Inc.(Æ) 18,218 1,405 Carlisle Cos., Inc. 756 78
Horizon Pharma PLC(Æ) 50,640 977 Caterpillar, Inc. 16,125 1,335
Humana, Inc. 6,435 1,110 CH Robinson Worldwide, Inc. 8,900 620
Intuitive Surgical, Inc.(Æ) 4,016 2,794 Chicago Bridge & Iron Co. 20,826 704
Jazz Pharmaceuticals PLC(Æ) 5,134 775 Colfax Corp.(Æ) 7,100 208
Johnson & Johnson 129,886 16,266 CSX Corp. 7,853 222
Magellan Health, Inc.(Æ) 2,300 158 Cummins, Inc. 1,228 151
Mallinckrodt PLC(Æ) 11,852 798 Danaher Corp. 3,837 312
Medtronic PLC 59,776 5,238 Deere & Co. 1,629 127
Merck & Co., Inc. 153,179 8,985 Delta Air Lines, Inc. 87,445 3,388
Molina Healthcare, Inc.(Æ) 3,100 176 Eaton Corp. PLC 13,620 864
Mylan NV(Æ) 55,769 2,609 Emerson Electric Co. 5,189 290
Ophthotech Corp.(Æ) 22,729 1,460 EnerSys 2,500 156
Patterson Cos., Inc. 22,210 1,096 Esterline Technologies Corp.(Æ) 4,800 292
Pfizer, Inc. 225,387 8,315 Expeditors International of Washington, Inc. 24,300 1,201
Quintiles Transnational Holdings, Inc.(Æ) 1,900 148 FedEx Corp. 15,105 2,445
Regeneron Pharmaceuticals, Inc.(Æ) 5,774 2,455 Fluor Corp. 9,499 508
ResMed, Inc. 18,500 1,274 Fortive Corp. 1,918 92
Shire PLC - ADR 1,175 228 General Dynamics Corp. 14,810 2,175
Stryker Corp. 19,416 2,258 General Electric Co. 32,099 1,000
TESARO, Inc.(Æ) 19,537 1,822 Honeywell International, Inc. 33,825 3,935
Thermo Fisher Scientific, Inc. 21,325 3,387 Hub Group, Inc. Class A(Æ) 1,600 66
UnitedHealth Group, Inc. 14,600 2,091 Huntington Ingalls Industries, Inc. 6,356 1,097
      99,067 Illinois Tool Works, Inc. 2,442 282
        Insperity, Inc. 2,100 165
Materials and Processing - 3.0%       Kansas City Southern 14,915 1,433
Acuity Brands, Inc. 1,385 363 KBR, Inc. 2,700 38
Air Products & Chemicals, Inc. 1,046 156 L-3 Communications Holdings, Inc. Class 3 7,990 1,212
Albemarle Corp. 4,400 370 Lockheed Martin Corp. 9,990 2,525
AptarGroup, Inc. 11,700 915 ManpowerGroup, Inc. 10,100 701
CRH PLC - ADR 150,000 4,614 Moog, Inc. Class A(Æ) 3,811 210
Dow Chemical Co. (The) 19,774 1,061 Norfolk Southern Corp. 28,223 2,534
Eastman Chemical Co. 7,142 466 Northrop Grumman Corp. 10,359 2,244
Ecolab, Inc. 22,581 2,673 Orbital ATK, Inc. 3,300 287
EI du Pont de Nemours & Co. 2,283 158 Quanta Services, Inc.(Æ) 8,800 225
International Flavors & Fragrances, Inc. 1,300 173 Raytheon Co. 47,975 6,694
International Paper Co. 37,100 1,700 Rockwell Automation, Inc. 10,404 1,190
Louisiana-Pacific Corp.(Æ) 43,333 875 Ryder System, Inc. 914 60
LyondellBasell Industries NV Class A 1,621 122 S&P Global, Inc. 8,614 1,053
Masco Corp. 41,200 1,503 Southwest Airlines Co. 74,300 2,750
Monsanto Co. 9,164 978 Stanley Black & Decker, Inc. 26,500 3,225
Nucor Corp. 16,700 896 Terex Corp. 42,581 1,028
PPG Industries, Inc. 17,785 1,862 Textron, Inc. 14,850 579
Praxair, Inc. 1,377 161 Trinity Industries, Inc. 39,700 921
Reliance Steel & Aluminum Co. 13,102 1,028 Triumph Group, Inc. 13,300 410
Rio Tinto PLC - ADR 37,500 1,231 Tyco International PLC 2,588 118
Westlake Chemical Corp. 19,100 874 Union Pacific Corp. 21,009 1,955

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Core Equity Fund 5

 

Russell Investment Company
Russell U.S. Core Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)      
    Principal Fair         Principal   Fair  
  Amount ($) or Value       Amount ($) or   Value  
    Shares $         Shares   $  
United Continental Holdings, Inc.(Æ) 6,626 311   Sanmina Corp.(Æ)   5,500   139  
United Parcel Service, Inc. Class B 7,632 825 SAP SE- ADR   25,041   2,188  
United Technologies Corp. 23,090 2,486   Symantec Corp.   72,362   1,478  
Waste Management, Inc. 3,525 233   SYNNEX Corp.   800   80  
WESCO International, Inc.(Æ) 1,600 89   Synopsys, Inc.(Æ)   29,700   1,609  
WW Grainger, Inc. 353 77   Tech Data Corp.(Æ)   5,800   452  
Xylem, Inc. 21,324 1,020   Texas Instruments, Inc.   5,284   369  
Zebra Technologies Corp. Class A(Æ) 6,200 329   Verint Systems, Inc.(Æ)   21,500   758  
      72,025   VMware, Inc. Class A(Æ)   15,000   1,095  
          Western Digital Corp.   34,200   1,625  
Technology - 15.4%         Zynga, Inc. Class A(Æ)   148,900   427  
Activision Blizzard, Inc. 45,140 1,813             112,602  
Adobe Systems, Inc.(Æ) 14,448 1,414                
Advanced Micro Devices, Inc.(Æ) 182,500 1,252   Utilities - 6.4%            
Alibaba Group Holding, Ltd. - ADR(Æ) 20,168 1,663   Ameren Corp.   600   31  
Alphabet, Inc. Class A(Æ) 6,241 4,939   American Electric Power Co., Inc.   29,256   2,027  
Alphabet, Inc. Class C(Æ) 13,840 10,640   American Water Works Co., Inc.   10,900   900  
Anixter International, Inc.(Æ) 14,000 858   AT&T, Inc.   291,597   12,623  
Apple, Inc. 112,390 11,712   Calpine Corp.(Æ)   59,605   819  
Applied Materials, Inc. 28,998 762   CenturyLink, Inc.   8,200   258  
ARRIS International PLC(Æ) 19,800 539   China Mobile, Ltd. - ADR   24,993   1,552  
Avnet, Inc. 34,355 1,412   Consolidated Edison, Inc.   11,100   889  
Broadcom, Ltd. 17,917 2,902   Dominion Resources, Inc.   15,891   1,240  
Ciena Corp.(Æ) 6,600 127   DTE Energy Co.   11,700   1,141  
Cisco Systems, Inc. 176,601 5,392   Duke Energy Corp.   6,439   551  
Cognizant Technology Solutions Corp. Class         Entergy Corp.   62,900   5,119  
     A(Æ) 6,549 376   Eversource Energy   16,200   948  
Computer Sciences Corp. 29,954 1,433   Great Plains Energy, Inc.   5,000   149  
Dolby Laboratories, Inc. Class A 2,100 106   NextEra Energy, Inc.   23,854   3,060  
Electronic Arts, Inc.(Æ) 19,022 1,452   PG&E Corp.   13,681   875  
EMC Corp. 8,913 252   PPL Corp.   7,700   290  
Facebook, Inc. Class A(Æ) 57,390 7,113   Public Service Enterprise Group, Inc.   28,900   1,330  
Finisar Corp.(Æ) 33,200 623   South Jersey Industries, Inc.   3,600   115  
FireEye, Inc.(Æ) 2,600 45   Southern Co. (The)   43,907   2,349  
Gartner, Inc.(Æ) 6,300 632   Telephone & Data Systems, Inc.   3,900   123  
Harris Corp. 17,653 1,529   T-Mobile US, Inc.(Æ)   8,000   371  
Hewlett Packard Enterprise Co. 35,869 754   US Cellular Corp.(Æ)   1,900   77  
IMS Health Holdings, Inc.(Æ) 3,884 117   Verizon Communications, Inc.   176,933   9,804  
Infinera Corp.(Æ) 7,100 62             46,641  
Intel Corp. 125,352 4,370                
International Business Machines Corp. 36,413 5,849   Total Common Stocks            
Jabil Circuit, Inc. 4,500 92   (cost $582,277)         708,802  
JDS Uniphase Corp.(Æ) 86,400 616                
Juniper Networks, Inc. 21,800 495 Short-Term Investments - 3.3%            
Lam Research Corp. 27,598 2,477   Russell U.S. Cash Management Fund   22,424,768 (8) 22,425  
Leidos Holdings, Inc. 3,000 150   United States Treasury Bills            
Marvell Technology Group, Ltd. 51,400 604   0.303% due 08/11/16 (ç)(§)   500   500  
Mentor Graphics Corp. 32,300 690   0.241% due 09/08/16 (ç)(§)   1,000   1,000  
Micron Technology, Inc.(Æ) 199,715 2,744   Total Short-Term Investments            
Microsoft Corp. 90,178 5,111   (cost $23,924)         23,925  
Motorola Solutions, Inc. 3,100 215                
NetApp, Inc. 15,600 411   Total Investments 100.2%            
Nuance Communications, Inc.(Æ) 4,900 79   (identified cost $606,201)         732,727  
NXP Semiconductors NV(Æ) 32,597 2,741                
ON Semiconductor Corp.(Æ) 7,900 79   Other Assets and Liabilities, Net            
Oracle Corp. 119,819 4,917 -(0.2%)       (1,775 )
QUALCOMM, Inc. 86,639 5,422   Net Assets - 100.0%         730,952  
Red Hat, Inc.(Æ) 33,018 2,486                
Rovi Corp.(Æ) 4,100 77                
Salesforce.com, Inc.(Æ) 34,696 2,838                

 

See accompanying notes which are an integral part of this quarterly report.

6 Russell U.S. Core Equity Fund

 

Russell Investment Company
Russell U.S. Core Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                
 
Amounts in thousands (except contract amounts)                
                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
Russell 1000 Mini Index Futures 38 USD 4,565 09/16 117
S&P 500 E-Mini Index Futures 169 USD 18,321 09/16 493
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               610

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Consumer Discretionary $ 102,279 $ — $ — $ — $   102,279
Consumer Staples   57,295   —   —   —     57,295
Energy   48,761   —   —   —     48,761
Financial Services   147,887   —   —   —     147,887
Health Care   99,067   —   —   —     99,067
Materials and Processing   22,245   —   —   —     22,245
Producer Durables   72,025   —   —   —     72,025
Technology   112,602   —   —   —     112,602
Utilities   46,641   —   —   —     46,641
Short-Term Investments — 1,500 — 22,425   23,925
Total Investments 708,802 1,500 — 22,425   732,727
 
 
Other Financial Instruments                      
Assets                      
Futures Contracts 610 — — —   610
 
Total Other Financial Instruments* $ 610 $ — $ — $ — $   610

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Core Equity Fund 7

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 95.5%       ConAgra Foods, Inc. 25,676 1,201
Consumer Discretionary - 11.8%       Constellation Brands, Inc. Class A 4,962 817
Aaron's, Inc. Class A 22,900 548 Core-Mark Holding Co., Inc. 28,766 1,408
Bed Bath & Beyond, Inc. 6,359 286 CVS Health Corp.(Û) 110,781 10,272
Best Buy Co., Inc. 6,529 219 Dean Foods Co. 22,500 415
Brinker International, Inc. 28,300 1,334 Dr Pepper Snapple Group, Inc. 59,585 5,870
Charter Communications, Inc. Class A(Æ) 963 226 Flowers Foods, Inc. 12,100 222
Choice Hotels International, Inc. 5,107 247 Hershey Co. (The) 10,225 1,132
Comcast Corp. Class A(Û) 173,220 11,649 Hormel Foods Corp. 53,100 1,983
Costco Wholesale Corp.(Û) 33,466 5,596 Ingredion, Inc. 4,581 610
Darden Restaurants, Inc. 1,861 115 JM Smucker Co. (The) 28,857 4,449
Delphi Automotive PLC 3,342 227 Kimberly-Clark Corp. 36,716 4,757
Dollar General Corp. 98,464 9,329 Kroger Co. (The) 125,894 4,304
Estee Lauder Cos., Inc. (The) Class A 22,600 2,100 Mead Johnson Nutrition Co. Class A 2,961 264
Foot Locker, Inc. 18,440 1,099 Molson Coors Brewing Co. Class B 28,022 2,863
Genuine Parts Co. 2,711 277 Mondelez International, Inc. Class A 87,592 3,852
Harman International Industries, Inc. 19,500 1,612 PepsiCo, Inc.(Û) 117,936 12,846
Hasbro, Inc. 3,547 288 Performance Food Group Co.(Æ) 18,100 497
Home Depot, Inc. (The) 60,355 8,343 Philip Morris International, Inc.(Û) 180,138 18,061
John Wiley & Sons, Inc. Class A 491 28 Procter & Gamble Co. (The) 207,832 17,788
Lear Corp. 1,636 186 Reynolds American, Inc. 87,721 4,391
Leggett & Platt, Inc. 1,993 105 Sanderson Farms, Inc. 7,200 631
Live Nation Entertainment, Inc.(Æ) 27,400 751 Sysco Corp. 51,524 2,668
Lowe's Cos., Inc. 99,993 8,227 United Natural Foods, Inc.(Æ) 18,800 940
Marriott International, Inc. Class A 490 35 Walgreens Boots Alliance, Inc. 3,111 247
McDonald's Corp. 34,391 4,046       127,964
Michael Kors Holdings, Ltd.(Æ) 3,695 191        
Mohawk Industries, Inc.(Æ) 1,360 284 Energy - 5.2%      
Murphy USA, Inc.(Æ) 18,100 1,387 Antero Resources Corp.(Æ) 46,600 1,220
News Corp. Class A 140,700 1,825 Chevron Corp. 84,217 8,631
Nike, Inc. Class B(Û) 109,210 6,061 CVR Energy, Inc. 80,300 1,188
NVR, Inc.(Æ) 1,382 2,356 Dril-Quip, Inc.(Æ) 2,496 136
Office Depot, Inc. 75,800 262 EQT Corp. 2,025 147
Omnicom Group, Inc. 54,982 4,524 Exxon Mobil Corp.(Û) 197,262 17,546
O'Reilly Automotive, Inc.(Æ) 6,977 2,028 First Solar, Inc.(Æ) 5,900 275
Ross Stores, Inc. 56,380 3,486 FMC Technologies, Inc.(Æ) 40,607 1,031
Starbucks Corp. 23,129 1,343 Frank's International NV 6,804 84
Target Corp. 14,729 1,110 HollyFrontier Corp. 19,200 488
Thomson Reuters Corp. 7,902 333 National Oilwell Varco, Inc. 432 14
Thor Industries, Inc. 24,771 1,896 NOW, Inc.(Æ) 41,000 751
Time Warner, Inc. 23,972 1,837 Occidental Petroleum Corp. 75,308 5,628
Time, Inc. 97,500 1,592 Oceaneering International, Inc. 42,239 1,178
TJX Cos., Inc. 57,975 4,738 Phillips 66 3,294 251
Twenty-First Century Fox, Inc. Class A 55,095 1,468 Royal Dutch Shell PLC Class A - ADR 81,474 4,219
VF Corp. 11,597 724 TransCanada Corp. 28,795 1,335
Visteon Corp.(Æ) 7,000 491 Valero Energy Corp. 34,000 1,777
Wal-Mart Stores, Inc.(Û) 92,303 6,735 World Fuel Services Corp. 11,531 549
Walt Disney Co. (The) 23,417 2,247       46,448
Yum! Brands, Inc. 33,870 3,029        
      106,820 Financial Services - 17.4%      
        Aflac, Inc. 116,189 8,398
Consumer Staples - 14.2%       Alleghany Corp.(Æ) 406 221
Altria Group, Inc.(Û) 136,064 9,212 Allied World Assurance Co. Holdings AG 24,721 1,013
Archer-Daniels-Midland Co. 5,990 270 Allstate Corp. (The) 47,562 3,250
Campbell Soup Co. 17,731 1,104 American Express Co. 4,525 292
Casey's General Stores, Inc. 13,450 1,796 American Financial Group, Inc. 14,206 1,038
Clorox Co. (The) 5,425 711 American International Group, Inc. 2,190 119
Coca-Cola Co. (The)(Û) 224,136 9,779 American Tower Corp.(ö) 4,771 552
Coca-Cola European Partners PLC 37,085 1,384 AmTrust Financial Services, Inc. 48,000 1,146
Colgate-Palmolive Co. 16,393 1,220 Annaly Capital Management, Inc.(ö) 11,287 124

 

See accompanying notes which are an integral part of this quarterly report.

8 Russell U.S. Defensive Equity Fund

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Arch Capital Group, Ltd.(Æ) 3,579 260 Post Properties, Inc.(ö) 10,404 662
Arthur J Gallagher & Co. 44,535 2,191 Principal Financial Group, Inc. 64,752 3,019
Aspen Insurance Holdings, Ltd. 42,762 1,965 ProAssurance Corp. 864 45
Assurant, Inc. 13,731 1,140 Progressive Corp. (The) 13,700 445
AvalonBay Communities, Inc.(ö) 13,062 2,425 Public Storage(ö) 1,638 391
Axis Capital Holdings, Ltd. 5,963 331 Realty Income Corp.(ö) 1,220 87
Bank of New York Mellon Corp. (The) 4,865 192 Regency Centers Corp.(ö) 10,397 883
BB&T Corp. 42,521 1,568 Reinsurance Group of America, Inc. Class A 25,297 2,511
Berkshire Hathaway, Inc. Class B(Æ)(Û) 73,193 10,560 RenaissanceRe Holdings, Ltd. 12,936 1,520
BlackRock, Inc. Class A 5,964 2,184 Simon Property Group, Inc.(ö) 27,105 6,154
Boston Properties, Inc.(ö) 4,174 593 Starwood Property Trust, Inc.(ö) 4,624 101
Broadridge Financial Solutions, Inc. 30,444 2,060 State Street Corp. 76,021 5,001
Brown & Brown, Inc. 1,875 69 SVB Financial Group(Æ) 2,800 281
Capital One Financial Corp. 3,604 242 T Rowe Price Group, Inc. 5,339 377
Care Capital Properties, Inc.(ö) 7,893 233 Tanger Factory Outlet Centers, Inc.(ö) 1,336 56
CBL & Associates Properties, Inc.(ö) 127,100 1,562 Taubman Centers, Inc.(ö) 3,988 323
CBOE Holdings, Inc. 15,585 1,072 TCF Financial Corp. 116,578 1,584
Chubb, Ltd. 23,959 3,001 Torchmark Corp. 3,202 198
Cincinnati Financial Corp. 4,173 312 Total System Services, Inc. 34,700 1,767
Citizens Financial Group, Inc. 75,900 1,695 Travelers Cos., Inc. (The) 23,960 2,785
CME Group, Inc. Class A 795 81 US Bancorp 55,622 2,346
CNA Financial Corp. 22,822 726 Validus Holdings, Ltd. 2,147 106
Comerica, Inc. 31,200 1,412 Visa, Inc. Class A(Û) 78,994 6,166
Commerce Bancshares, Inc. 1,378 65 Voya Financial, Inc. 69,622 1,784
Crown Castle International Corp.(ö) 2,564 249 Waddell & Reed Financial, Inc. Class A 95,200 1,738
Cullen/Frost Bankers, Inc. 23,514 1,596 Wells Fargo & Co.(Û) 227,965 10,936
Discover Financial Services 4,451 253 White Mountains Insurance Group, Ltd. 144 118
East West Bancorp, Inc. 27,348 936 WR Berkley Corp. 43,742 2,545
Endurance Specialty Holdings, Ltd. 25,276 1,709 XL Group, Ltd. 101,373 3,509
Equifax, Inc. 11,105 1,471       157,233
Equity LifeStyle Properties, Inc. Class A(ö) 15,990 1,315        
Equity Residential(ö) 38,665 2,629 Health Care - 15.2%      
Everest Re Group, Ltd. 12,825 2,424 Abbott Laboratories 151,148 6,764
FactSet Research Systems, Inc. 10,650 1,831 Aetna, Inc. 31,782 3,662
Fidelity National Information Services, Inc. 27,274 2,169 Agilent Technologies, Inc. 7,566 364
First American Financial Corp. 991 41 Agios Pharmaceuticals, Inc.(Æ) 3,700 167
Fiserv, Inc.(Æ) 3,350 370 Alexion Pharmaceuticals, Inc.(Æ) 477 61
FNF Group 1,442 54 Allergan PLC(Æ) 1,172 296
FNFV Group(Æ) 18,071 216 Alnylam Pharmaceuticals, Inc.(Æ) 7,800 531
Global Payments, Inc. 25,783 1,925 AmerisourceBergen Corp. Class A 66,483 5,664
Hanover Insurance Group, Inc. (The) 14,512 1,195 Amgen, Inc.(Û) 57,844 9,951
Intercontinental Exchange, Inc. 3,377 892 Anthem, Inc. 22,633 2,973
Invesco, Ltd. 10,008 292 Baxter International, Inc. 120,180 5,771
Jack Henry & Associates, Inc. 19,372 1,729 Becton Dickinson and Co. 24,673 4,342
Jones Lang LaSalle, Inc. 16,771 1,836 Biogen, Inc.(Æ) 3,339 968
Liberty Property Trust(ö) 5,837 242 Bio-Rad Laboratories, Inc. Class A(Æ) 12,460 1,808
Loews Corp. 9,357 387 Boston Scientific Corp.(Æ) 17,085 415
M&T Bank Corp. 3,296 378 Bristol-Myers Squibb Co. 35,994 2,693
Markel Corp.(Æ) 2,294 2,176 Bruker Corp. 9,258 231
Marsh & McLennan Cos., Inc. 86,630 5,696 Cardinal Health, Inc.(Û) 90,312 7,550
MasterCard, Inc. Class A(Û) 57,286 5,456 Celgene Corp.(Æ) 1,222 137
MetLife, Inc. 8,596 367 Charles River Laboratories International,      
MFA Financial, Inc.(ö) 22,425 169       Inc.(Æ) 1,762 155
Mid-America Apartment Communities, Inc.       Cigna Corp. 4,148 535
(ö) 284 30 CR Bard, Inc. 7,176 1,605
NorthStar Realty Finance Corp.(ö) 68,900 923 DaVita HealthCare Partners, Inc.(Æ) 1,313 102
Old Republic International Corp. 1,604 31 Eli Lilly & Co. 27,068 2,244
Paramount Group, Inc.(ö) 93,908 1,656 Express Scripts Holding Co.(Æ) 15,852 1,206
People's United Financial, Inc. 7,849 119 Gilead Sciences, Inc. 65,946 5,241
PNC Financial Services Group, Inc. (The)(Û) 59,778 4,941 Haemonetics Corp.(Æ) 43,661 1,324

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Defensive Equity Fund 9

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Henry Schein, Inc.(Æ) 2,185 395 Carlisle Cos., Inc. 478 49
Humana, Inc. 2,196 379 CH Robinson Worldwide, Inc. 28,303 1,970
IDEXX Laboratories, Inc.(Æ) 873 82 Cintas Corp. 652 70
Impax Laboratories, Inc.(Æ) 9,000 283 Copart, Inc.(Æ) 1,269 64
Intuitive Surgical, Inc.(Æ) 3,260 2,268 Cummins, Inc. 2,352 289
Johnson & Johnson(Û) 173,810 21,766 Danaher Corp. 6,872 560
Laboratory Corp. of America Holdings(Æ) 2,297 320 Eaton Corp. PLC 3,308 210
Magellan Health, Inc.(Æ) 18,460 1,264 Esterline Technologies Corp.(Æ) 9,200 560
McKesson Corp. 15,818 3,077 Expeditors International of Washington, Inc. 33,400 1,651
MEDNAX, Inc.(Æ) 2,375 164 Fluor Corp. 3,000 161
Medtronic PLC 8,442 740 Fortive Corp. 10,628 512
Merck & Co., Inc. 75,929 4,454 General Dynamics Corp. 51,119 7,509
Patterson Cos., Inc. 35,831 1,769 General Electric Co. 4,954 154
Pfizer, Inc. 310,557 11,456 Genpact, Ltd.(Æ) 2,262 61
Premier, Inc. Class A(Æ) 5,008 164 Honeywell International, Inc. 68,348 7,951
ResMed, Inc. 37,677 2,595 IDEX Corp. 1,145 103
St. Jude Medical, Inc. 1,235 102 Illinois Tool Works, Inc. 62,536 7,217
Stryker Corp. 33,261 3,868 Insperity, Inc. 7,400 581
Teleflex, Inc. 1,179 212 JB Hunt Transport Services, Inc. 1,337 111
Thermo Fisher Scientific, Inc. 3,065 487 KBR, Inc. 41,700 585
UnitedHealth Group, Inc. 77,141 11,047 KLX, Inc.(Æ) 900 29
Varian Medical Systems, Inc.(Æ) 24,034 2,277 L-3 Communications Holdings, Inc. Class 3 18,560 2,814
VCA, Inc.(Æ) 3,757 268 Landstar System, Inc. 10,800 761
VWR Corp.(Æ) 9,285 291 Lincoln Electric Holdings, Inc. 11,116 690
Zimmer Biomet Holdings, Inc. 3,917 514 Lockheed Martin Corp.(Û) 19,039 4,812
Zoetis, Inc. Class A 5,672 286 ManpowerGroup, Inc. 24,973 1,733
      137,288 Mettler-Toledo International, Inc.(Æ) 2,045 841
        Moog, Inc. Class A(Æ) 16,700 920
Materials and Processing - 1.5%       MSC Industrial Direct Co., Inc. Class A 921 66
Acuity Brands, Inc. 230 60 Northrop Grumman Corp. 20,744 4,494
AptarGroup, Inc. 2,747 215 PACCAR, Inc. 2,876 170
Beacon Roofing Supply, Inc.(Æ) 12,200 574 Parker-Hannifin Corp. 1,974 225
Bemis Co., Inc. 10,600 541 Quanta Services, Inc.(Æ) 25,500 653
Crown Holdings, Inc.(Æ) 30,056 1,592 Raytheon Co. 27,575 3,847
Domtar Corp. 17,900 705 Republic Services, Inc. Class A 12,700 651
EI du Pont de Nemours & Co. 14,926 1,032 Robert Half International, Inc. 3,675 134
International Flavors & Fragrances, Inc. 15,150 2,019 Rockwell Automation, Inc. 1,670 191
LyondellBasell Industries NV Class A 3,674 277 Rockwell Collins, Inc. 3,358 284
Monsanto Co. 716 76 Snap-on, Inc. 9,559 1,502
NewMarket Corp. 205 88 Spirit AeroSystems Holdings, Inc. Class A(Æ) 5,930 257
Newmont Mining Corp. 1,882 83 Stanley Black & Decker, Inc. 21,663 2,636
Platform Specialty Products Corp.(Æ) 81,900 753 Toro Co. (The) 806 74
PPG Industries, Inc. 1,708 179 Trinity Industries, Inc. 69,200 1,606
Praxair, Inc. 17,692 2,062 Union Pacific Corp. 16,057 1,494
Sherwin-Williams Co. (The) 3,964 1,188 United Parcel Service, Inc. Class B 22,966 2,483
Sonoco Products Co. 2,437 124 United Technologies Corp. 36,791 3,961
Tahoe Resources, Inc. 9,588 149 Wabtec Corp. 20,595 1,411
Westlake Chemical Corp. 40,428 1,849 Waters Corp.(Æ) 3,241 515
      13,566 WESCO International, Inc.(Æ) 30,800 1,717
        WW Grainger, Inc. 14,929 3,267
Producer Durables - 11.4%       Xylem, Inc. 6,574 314
3M Co. 33,675 6,006 Zebra Technologies Corp. Class A(Æ) 14,100 747
Accenture PLC Class A 71,489 8,065       103,198
AGCO Corp. 10,500 506        
AO Smith Corp. 858 80 Technology - 10.8%      
Automatic Data Processing, Inc. 81,284 7,230 Adobe Systems, Inc.(Æ) 9,634 943
Avery Dennison Corp. 5,189 404 Advanced Micro Devices, Inc.(Æ) 272,400 1,869
Babcock & Wilcox Co. (The) 8,481 312 Akamai Technologies, Inc.(Æ) 475 24
Boeing Co. (The) 35,332 4,722 Alphabet, Inc. Class A(Æ) 7,289 5,768
Canadian Pacific Railway, Ltd. 1,374 206 Alphabet, Inc. Class C(Æ)(Û) 18,413 14,156

 

See accompanying notes which are an integral part of this quarterly report.

10 Russell U.S. Defensive Equity Fund

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)      
    Principal Fair     Principal   Fair  
  Amount ($) or Value   Amount ($) or   Value  
    Shares $     Shares   $  
Amdocs, Ltd. 3,926 229 DTE Energy Co. 23,539   2,296  
Amphenol Corp. Class A 4,386 261 Duke Energy Corp. 15,147   1,296  
Analog Devices, Inc. 27,414 1,750 Dynegy, Inc. Class A(Æ) 19,600   297  
Anixter International, Inc.(Æ) 24,410 1,496 Edison International 45,078   3,488  
Apple, Inc. 90,446 9,425 Entergy Corp. 40,460   3,293  
Arista Networks, Inc.(Æ) 24,800 1,767 Eversource Energy 33,200   1,942  
Arrow Electronics, Inc.(Æ) 18,400 1,223 Great Plains Energy, Inc. 2,797   83  
Avnet, Inc. 51,988 2,137 Hawaiian Electric Industries, Inc. 962   30  
Broadcom, Ltd. 3,794 615 ITC Holdings Corp. 1,437   66  
CA, Inc. 7,601 263 MDU Resources Group, Inc. 11,220   270  
CACI International, Inc. Class A(Æ) 1,080 103 NextEra Energy, Inc.(Û) 77,214   9,906  
Cadence Design Systems, Inc.(Æ) 4,512 108 NiSource, Inc. 13,188   338  
Ciena Corp.(Æ) 23,400 449 ONE Gas, Inc. 19,010   1,235  
Cisco Systems, Inc. 179,632 5,484 PG&E Corp. 21,868   1,398  
Cognizant Technology Solutions Corp. Class       Pinnacle West Capital Corp. 3,220   254  
     A(Æ) 4,557 262 PPL Corp. 6,425   242  
Dolby Laboratories, Inc. Class A 15,500 780 Public Service Enterprise Group, Inc. 92,647   4,263  
EchoStar Corp. Class A(Æ) 12,700 495 SCANA Corp. 2,613   196  
EMC Corp. 4,731 134 Sempra Energy 18,148   2,030  
F5 Networks, Inc.(Æ) 1,665 205 Southern Co. (The) 3,200   171  
Facebook, Inc. Class A(Æ) 35,783 4,435 Talen Energy Corp.(Æ) 4,639   63  
Finisar Corp.(Æ) 48,300 906 UGI Corp. 13,572   614  
Infinera Corp.(Æ) 64,900 568 US Cellular Corp.(Æ) 6,458   261  
Intel Corp. 124,308 4,333 Vectren Corp. 1,243   64  
International Business Machines Corp. 19,425 3,120 Verizon Communications, Inc.(Û) 199,757   11,069  
JDS Uniphase Corp.(Æ) 213,875 1,525 WEC Energy Group, Inc. 26,099   1,694  
Juniper Networks, Inc. 16,900 383 Westar Energy, Inc. Class A 1,505   84  
Linear Technology Corp. 3,593 216 Xcel Energy, Inc. 55,769   2,453  
Manhattan Associates, Inc.(Æ) 426 25         72,432  
Mentor Graphics Corp. 75,728 1,618            
Microchip Technology, Inc. 67,929 3,780 Total Common Stocks          
Microsoft Corp. 159,844 9,060 (cost $756,233)       861,935  
NETGEAR, Inc.(Æ) 7,400 381            
Oracle Corp. 16,140 662 Short-Term Investments - 11.7%          
Red Hat, Inc.(Æ) 1,059 80 Russell U.S. Cash Management Fund 90,528,922 (8) 90,529  
Sanmina Corp.(Æ) 14,600 370 United States Treasury Bills          
Symantec Corp. 77,200 1,577     0.523% due 10/06/16 (§) 7,000   6,997  
Synaptics, Inc.(Æ) 7,200 374     0.340% due 03/30/17 (§) 8,000   7,978  
SYNNEX Corp. 7,100 714 Total Short-Term Investments          
Synopsys, Inc.(Æ) 42,519 2,303 (cost $105,497)       105,504  
TE Connectivity, Ltd. 16,541 997            
Tech Data Corp.(Æ) 19,800 1,543 Total Investments 107.2%          
Texas Instruments, Inc. 30,455 2,124            
Verint Systems, Inc.(Æ) 33,600 1,185 (identified cost $861,730)       967,439  
        Securities Sold Short - (7.5)%          
VMware, Inc. Class A(Æ) 27,950 2,040 Consumer Discretionary - (1.9)%          
Western Digital Corp. 41,500 1,972 AutoNation, Inc.(Æ) (10,300 ) (549 )
Zynga, Inc. Class A(Æ) 261,100 749 CarMax, Inc.(Æ) (19,100 ) (1,113 )
      96,986 Dorman Products, Inc.(Æ) (17,100 ) (1,089 )
Utilities - 8.0%       Five Below, Inc.(Æ) (19,900 ) (1,015 )
Alliant Energy Corp. 4,504 181 Gentex Corp. (31,800 ) (562 )
Ameren Corp. 4,631 243 H&R Block, Inc. (13,100 ) (312 )
American Electric Power Co., Inc.(Û) 34,094 2,363 Harley-Davidson, Inc. (18,000 ) (953 )
American Water Works Co., Inc. 37,531 3,099 Hillenbrand, Inc. (32,401 ) (1,048 )
Aqua America, Inc. 3,323 115 Houghton Mifflin Harcourt Co.(Æ) (12,400 ) (210 )
AT&T, Inc.(Û) 282,964 12,250 KAR Auction Services, Inc. (10,700 ) (458 )
Atmos Energy Corp. 1,952 156 L Brands, Inc. (9,600 ) (709 )
CenterPoint Energy, Inc. 12,631 302 Lamar Advertising Co. Class A(ö) (10,900 ) (740 )
CMS Energy Corp. 34,190 1,545 Las Vegas Sands Corp. (8,500 ) (431 )
Consolidated Edison, Inc. 34,735 2,782 Liberty Broadband Corp. Class A(Æ) (18,267 ) (1,147 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Defensive Equity Fund 11

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)       Amounts in thousands (except share amounts)      
    Principal   Fair         Principal   Fair  
  Amount ($) or   Value       Amount ($) or   Value  
    Shares   $         Shares   $  
Monro Muffler Brake, Inc. (14,400 ) (902 )           (4,101 )
Ollie's Bargain Outlet Holdings, Inc.(Æ) (7,900 ) (206 ) Materials and Processing - (0.7)%            
Polaris Industries, Inc. (10,800 ) (1,066 ) Balchem Corp.   (17,390 ) (1,111 )
Priceline Group, Inc. (The)(Æ) (620 ) (837 ) Ball Corp.   (14,970 ) (1,058 )
Sinclair Broadcast Group, Inc. Class A (22,100 ) (615 ) Carpenter Technology Corp.   (5,000 ) (196 )
Sirius XM Holdings, Inc.(Æ) (270,600 ) (1,188 ) Eagle Materials, Inc.   (8,900 ) (747 )
Sotheby's Class A(Æ) (19,100 ) (619 ) Lennox International, Inc. Class 2   (4,290 ) (673 )
TripAdvisor, Inc.(Æ) (12,300 ) (861 ) Martin Marietta Materials, Inc.   (4,510 ) (914 )
Under Armour, Inc. Class A(Æ) (15,200 ) (600 ) Masco Corp.   (7,400 ) (270 )
        (17,230 ) RBC Bearings, Inc.(Æ)   (9,840 ) (748 )
Consumer Staples - (0.3)%           Vulcan Materials Co.   (6,900 ) (855 )
Boston Beer Co., Inc. Class A(Æ) (3,740 ) (684 )           (6,572 )
Diplomat Pharmacy, Inc.(Æ) (4,400 ) (158 ) Producer Durables - (0.9)%            
Kraft Heinz Co. (The) (4,900 ) (423 ) Clarcor, Inc.   (4,300 ) (268 )
Molson Coors Brewing Co. Class B (8,620 ) (881 ) Eaton Corp. PLC   (18,800 ) (1,192 )
Reynolds American, Inc. (5,000 ) (250 ) General Electric Co.   (36,200 ) (1,127 )
Vector Group, Ltd. (30,700 ) (678 ) Knight Transportation, Inc.   (38,500 ) (1,149 )
        (3,074 ) Old Dominion Freight Line, Inc.(Æ)   (17,200 ) (1,198 )
Energy - (0.1)%           Oshkosh Corp.   (12,300 ) (678 )
Helmerich & Payne, Inc. (9,600 ) (595 ) PACCAR, Inc.   (19,600 ) (1,156 )
            S&P Global, Inc.   (3,120 ) (381 )
Financial Services - (2.0)%           Verisk Analytics, Inc. Class A(Æ)   (13,700 ) (1,168 )
Alexander & Baldwin, Inc. (9,800 ) (386 )           (8,317 )
American Capital Agency Corp.(ö) (18,900 ) (370 ) Technology - (0.9)%            
BGC Partners, Inc. Class A (54,700 ) (485 ) Activision Blizzard, Inc.   (17,700 ) (711 )
Blackhawk Network Holdings, Inc. Class           Akamai Technologies, Inc.(Æ)   (17,600 ) (889 )
     A(Æ) (13,700 ) (477 ) Black Knight Financial Services, Inc. Class            
Charles Schwab Corp. (The) (7,700 ) (219 ) A(Æ)   (3,312 ) (129 )
Chimera Investment Corp.(ö) (73,100 ) (1,227 ) Cognex Corp.   (20,800 ) (940 )
Cohen & Steers, Inc. (12,600 ) (543 ) Cypress Semiconductor Corp.   (28,200 ) (328 )
CoreSite Realty Corp. Class A(ö) (7,300 ) (602 ) Entegris, Inc.(Æ)   (14,156 ) (242 )
Eaton Vance Corp. (27,400 ) (1,036 ) GrubHub, Inc.(Æ)   (32,600 ) (1,236 )
Evercore Partners, Inc. Class A (8,200 ) (415 ) Microchip Technology, Inc.   (22,000 ) (1,224 )
Fair Isaac Corp. (5,130 ) (650 ) Paycom Software, Inc.(Æ)   (3,500 ) (165 )
GEO Group, Inc. (The)(ö) (11,100 ) (384 ) Skyworks Solutions, Inc.   (13,900 ) (918 )
Hudson Pacific Properties, Inc.(ö) (34,800 ) (1,177 ) VeriSign, Inc.(Æ)   (9,700 ) (840 )
Janus Capital Group, Inc. (29,700 ) (448 )           (7,622 )
Kennedy-Wilson Holdings, Inc. (51,400 ) (1,082 ) Utilities - (0.2)%            
Kite Realty Group Trust(ö) (40,200 ) (1,222 ) Cogent Communications Holdings, Inc.   (28,470 ) (1,216 )
Mercury General Corp. (7,600 ) (421 ) Pattern Energy Group, Inc. Class A   (38,700 ) (943 )
Omega Healthcare Investors, Inc.(ö) (17,500 ) (604 )           (2,159 )
PacWest Bancorp (10,800 ) (447 )              
PayPal Holdings, Inc.(Æ) (20,500 ) (763 ) Total Securities Sold Short            
Prologis, Inc.(ö) (17,700 ) (964 ) (proceeds $60,108)         (67,710 )
Select Income REIT(ö) (50,200 ) (1,394 )              
T Rowe Price Group, Inc. (13,900 ) (983 ) Other Assets and Liabilities, Net            
United Bankshares, Inc. (23,500 ) (900 ) - 0.3%       2,838  
Ventas, Inc.(ö) (5,600 ) (427 ) Net Assets - 100.0%         902,567  
Western Union Co. (The) (20,700 ) (414 )              
        (18,040 )              
Health Care - (0.5)%                        
AbbVie, Inc. (17,600 ) (1,166 )              
Alexion Pharmaceuticals, Inc.(Æ) (700 ) (90 )              
AMN Healthcare Services, Inc.(Æ) (6,300 ) (266 )              
Chemed Corp. (5,420 ) (798 )              
Neogen Corp.(Æ) (13,300 ) (733 )              
PAREXEL International Corp.(Æ) (12,200 ) (816 )              
Penumbra, Inc.(Æ) (3,400 ) (232 )              

 

See accompanying notes which are an integral part of this quarterly report.

12 Russell U.S. Defensive Equity Fund

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                
 
Amounts in thousands (except contract amounts)                
                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
S&P 500 E-Mini Index Futures 39 USD 4,228 09/16 92
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               92
               

 

Options Written                  
Amounts in thousands (except contract amounts)                
    Number of Strike   Notional   Expiration Fair Value  
  Call/Put Contracts Price   Amount   Date $  
S&P 500 Index Put 90 2,040.00 USD 18,360 08/05/16 (2 )
S&P 500 Index Put 89 2,085.00 USD 18,557 08/12/16 (15 )
S&P 500 Index Put 91 2,090.00 USD 19,019 08/19/16 (35 )
S&P 500 Index Put 88 2,090.00 USD 18,392 08/26/16 (56 )
Total Liability for Options Written (premiums received $229)             (108 )

 

Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
  Number of     Premiums  
    Contracts     Received  
Outstanding October 31, 2015 207   $ 162  
Opened 3,231   2,833  
Closed (3,080 ) (2,766 )
Expired —   —  
Outstanding July 31, 2016 358   $ 229  

 

Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                Practical        
Portfolio Summary Level 1   Level 2 Level 3 Expedient (a)   Total  
Common Stocks                          
Consumer Discretionary $ 106,820   $ — $ — $ — $   106,820  
Consumer Staples   127,964     —   —   —     127,964  
Energy   46,448     —   —   —     46,448  
Financial Services   157,233     —   —   —     157,233  
Health Care   137,288     —   —   —     137,288  
Materials and Processing   13,566     —   —   —     13,566  
Producer Durables   103,198     —   —   —     103,198  
Technology   96,986     —   —   —     96,986  
Utilities   72,432     —   —   —     72,432  
Short-Term Investments —   14,975 — 90,529   105,504  
Total Investments 861,935   14,975 — 90,529   967,439  
Securities Sold Short** (67,710 ) — — —   (67,710 )
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 92   — — —   92  

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Defensive Equity Fund 13

 

Russell Investment Company
Russell U.S. Defensive Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                Practical        
Portfolio Summary Level 1   Level 2 Level 3 Expedient (a)   Total  
Liabilities                          
Options Written (108 ) — — —   (108 )
Total Other Financial Instruments* $ (16 ) $ — $ — $ — $   (16 )

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
**    Refer to Schedule of Investments for detailed sector breakout.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

14 Russell U.S. Defensive Equity Fund

 

Russell Investment Company
Russell U.S. Dynamic Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 101.7%       Starbucks Corp. 993 58
Consumer Discretionary - 16.3%       Target Corp. 5,933 447
Aaron's, Inc. Class A 36,600 877 Tenneco, Inc.(Æ) 19,900 1,125
Amazon.com, Inc.(Æ) 15,071 11,436 Thomson Reuters Corp. 7,823 329
AMC Networks, Inc. Class A(Æ) 10,400 576 Time Warner, Inc. 36,086 2,766
Avis Budget Group, Inc.(Æ) 7,568 278 Time, Inc. 92,963 1,518
Bed Bath & Beyond, Inc. 22,449 1,009 TJX Cos., Inc. 5,251 429
Best Buy Co., Inc. 50,775 1,706 Toll Brothers, Inc.(Æ) 6,131 172
Big Lots, Inc. 28,295 1,505 Twenty-First Century Fox, Inc. Class A 33,368 889
Bloomin' Brands, Inc. 46,580 837 Visteon Corp.(Æ) 19,742 1,384
Cable One, Inc. 1,830 959 Wal-Mart Stores, Inc. 27,042 1,973
Carnival Corp. 6,997 327 Walt Disney Co. (The) 3,931 377
Charter Communications, Inc. Class A(Æ) 950 223 Yum! Brands, Inc. 609 54
Chipotle Mexican Grill, Inc. Class A(Æ) 480 204 Zillow Group, Inc. Class A(Æ) 4,833 190
Coach, Inc. 13,595 586       80,893
Comcast Corp. Class A 5,558 374        
Cooper Tire & Rubber Co. 36,383 1,200 Consumer Staples - 3.8%      
Cooper-Standard Holding, Inc.(Æ) 5,900 519 Altria Group, Inc. 2,112 143
Costco Wholesale Corp. 354 59 Bunge, Ltd. 16,600 1,093
Dana Holding Corp. 99,766 1,361 Colgate-Palmolive Co. 737 55
Deckers Outdoor Corp.(Æ) 34,811 2,298 CVS Health Corp. 735 68
Delphi Automotive PLC 30,299 2,055 Dean Foods Co. 75,185 1,388
Discovery Communications, Inc. Class A(Æ) 44,907 1,127 Energizer Holdings, Inc.(Æ) 5,200 440
eBay, Inc.(Æ) 69,196 2,156 Herbalife, Ltd.(Æ) 6,676 454
Fiat Chrysler Automobiles NV(Æ) 189,447 1,214 Ingredion, Inc. 7,567 1,008
Fitbit, Inc. Class A(Æ) 5,000 68 Kimberly-Clark Corp. 298 39
Ford Motor Co. 234,493 2,969 Kroger Co. (The) 27,800 950
General Motors Co. 127,584 4,024 Mondelez International, Inc. Class A 71,089 3,126
Goodyear Tire & Rubber Co. (The) 32,779 940 Nu Skin Enterprises, Inc. Class A 3,067 164
Graham Holdings Co. Class B 78 39 PepsiCo, Inc. 2,665 290
Grupo Televisa SAB - ADR 2,002 53 Philip Morris International, Inc. 1,874 188
Harman International Industries, Inc. 13,380 1,106 Pinnacle Foods, Inc. 72,834 3,657
Home Depot, Inc. (The) 2,960 409 Procter & Gamble Co. (The) 3,208 275
Interpublic Group of Cos., Inc. (The) 27,075 624 Sysco Corp. 31,941 1,654
Johnson Controls, Inc. 1,546 71 TreeHouse Foods, Inc.(Æ) 32,656 3,370
Kohl's Corp. 3,308 138 Tyson Foods, Inc. Class A 7,455 549
Las Vegas Sands Corp. 2,426 123 Walgreens Boots Alliance, Inc. 2,677 212
Lear Corp. 15,083 1,711       19,123
Lennar Corp. Class A 1,841 86        
Lowe's Cos., Inc. 42,922 3,532 Energy - 7.4%      
Marriott International, Inc. Class A 2,161 155 Anadarko Petroleum Corp. 832 45
McDonald's Corp. 868 102 Antero Resources Corp.(Æ) 40,700 1,066
Meritage Homes Corp.(Æ) 2,140 78 Apache Corp. 1,368 72
Michael Kors Holdings, Ltd.(Æ) 32,333 1,672 Baker Hughes, Inc. 589 28
Mobileye NV(Æ) 1,962 94 BP PLC - ADR 50,625 1,741
Murphy USA, Inc.(Æ) 13,000 996 Canadian Natural Resources, Ltd. 12,620 382
Netflix, Inc.(Æ) 644 59 Cenovus Energy, Inc. 85,450 1,222
Newell Brands, Inc. 77,164 4,048 Chevron Corp. 3,622 371
News Corp. Class A 153,315 1,988 Cimarex Energy Co. 409 49
Nike, Inc. Class B 4,057 225 Concho Resources, Inc.(Æ) 170 21
NVR, Inc.(Æ) 672 1,146 ConocoPhillips 3,505 143
Office Depot, Inc. 60,714 210 CVR Energy, Inc. 31,300 463
Omnicom Group, Inc. 24,400 2,008 Devon Energy Corp. 1,012 39
Pandora Media, Inc.(Æ) 4,096 56 Energen Corp.(Æ) 15,500 734
Priceline Group, Inc. (The)(Æ) 1,121 1,514 Ensco PLC Class A 217,196 1,992
PulteGroup, Inc. 29,678 629 EOG Resources, Inc. 1,059 87
PVH Corp. 33,491 3,385 EQT Corp. 460 34
Ross Stores, Inc. 2,171 134 Exxon Mobil Corp. 28,737 2,556
Royal Caribbean Cruises, Ltd. 10,343 749 First Solar, Inc.(Æ) 6,200 289
Staples, Inc. 124,327 1,155 FMC Technologies, Inc.(Æ) 19,593 497

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Dynamic Equity Fund 15

 

Russell Investment Company
Russell U.S. Dynamic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Golar LNG, Ltd. 14,666 249 Citigroup, Inc. 290,031 12,706
Halliburton Co. 34,348 1,500 Citizens Financial Group, Inc. 54,200 1,210
Hess Corp. 575 31 CME Group, Inc. Class A 1,005 103
Kinder Morgan, Inc. 693 14 Comerica, Inc. 23,000 1,040
Laredo Petroleum, Inc.(Æ) 31,200 313 CoreSite Realty Corp. Class A(ö) 1,664 137
Marathon Oil Corp. 89,000 1,214 Crown Castle International Corp.(ö) 14,500 1,407
Marathon Petroleum Corp. 21,019 828 Digital Realty Trust, Inc.(ö) 11,400 1,191
Murphy Oil Corp. 55,454 1,521 Discover Financial Services 721 41
Nabors Industries, Ltd. 194,232 1,748 E*Trade Financial Corp.(Æ) 20,200 507
National Oilwell Varco, Inc. 440 14 East West Bancorp, Inc. 29,200 999
Newfield Exploration Co.(Æ) 1,069 46 Equinix, Inc.(ö) 3,400 1,268
Noble Corp. PLC 85,086 628 Equity Commonwealth(Æ)(ö) 12,056 362
Occidental Petroleum Corp. 1,538 115 Everest Re Group, Ltd. 178 34
Oceaneering International, Inc. 7,703 215 First American Financial Corp. 5,030 210
Oil States International, Inc.(Æ) 5,725 177 First Republic Bank 2,087 150
Patterson-UTI Energy, Inc. 6,546 127 Forest City Realty Trust, Inc. Class A(ö) 8,523 202
PBF Energy, Inc. Class A 13,000 290 Franklin Resources, Inc. 50,875 1,841
Phillips 66 2,351 179 Genworth Financial, Inc. Class A(Æ) 103,129 295
Pioneer Natural Resources Co. 31,240 5,079 Global Payments, Inc. 18,800 1,404
Rice Energy, Inc.(Æ) 13,555 316 Goldman Sachs Group, Inc. (The) 20,042 3,183
Rowan Cos. PLC Class A(Æ) 87,061 1,327 Hanover Insurance Group, Inc. (The) 10,300 848
Royal Dutch Shell PLC Class A - ADR 42,483 2,200 Hartford Financial Services Group, Inc. 12,845 512
Schlumberger, Ltd. 2,340 188 HCP, Inc.(ö) 3,134 123
Spectra Energy Corp. 1,503 54 Hospitality Properties Trust(ö) 21,080 673
Suncor Energy, Inc. 6,543 176 Intercontinental Exchange, Inc. 4,650 1,229
Superior Energy Services, Inc.(Æ) 33,222 531 JPMorgan Chase & Co. 115,325 7,377
Tesoro Corp. 17,449 1,329 KeyCorp 340,466 3,983
Valero Energy Corp. 58,289 3,047 Lincoln National Corp. 16,200 707
Weatherford International PLC(Æ) 115,500 656 Mack-Cali Realty Corp.(ö) 5,675 160
Whiting Petroleum Corp.(Æ) 26,600 196 MasterCard, Inc. Class A 805 77
World Fuel Services Corp. 10,400 495 MetLife, Inc. 138,608 5,924
      36,634 Morgan Stanley 67,250 1,932
        Navient Corp. 22,212 315
Financial Services - 21.3%       NorthStar Realty Europe Corp.(ö) 6,663 62
Affiliated Managers Group, Inc.(Æ) 1,273 187 NorthStar Realty Finance Corp.(ö) 1,978 26
Aflac, Inc. 2,123 153 PayPal Holdings, Inc.(Æ) 1,025 38
Alliance Data Systems Corp.(Æ) 5,180 1,200 Piedmont Office Realty Trust, Inc. Class A(ö) 5,451 120
Allied World Assurance Co. Holdings AG 1,249 51 PNC Financial Services Group, Inc. (The) 431 36
Allstate Corp. (The) 15,593 1,065 Principal Financial Group, Inc. 20,960 977
Ally Financial, Inc. 42,897 774 ProAssurance Corp. 913 47
American Express Co. 729 47 Progressive Corp. (The) 1,771 58
American International Group, Inc. 40,423 2,201 Prudential Financial, Inc. 69,391 5,224
Ameriprise Financial, Inc. 2,133 204 Regions Financial Corp. 552,051 5,062
Annaly Capital Management, Inc.(ö) 960 11 Reinsurance Group of America, Inc. Class A 16,185 1,606
Arch Capital Group, Ltd.(Æ) 1,170 85 Ryman Hospitality Properties, Inc.(ö) 20,609 1,159
Arthur J Gallagher & Co. 3,953 194 Senior Housing Properties Trust(ö) 5,469 121
Aspen Insurance Holdings, Ltd. 32,242 1,482 Signature Bank(Æ) 6,390 768
Assured Guaranty, Ltd. 61,396 1,645 Simon Property Group, Inc.(ö) 186 42
Axis Capital Holdings, Ltd. 21,093 1,172 Starwood Property Trust, Inc.(ö) 2,288 50
Bank of America Corp. 389,324 5,641 State Street Corp. 31,757 2,089
Bank of Montreal 7,447 477 SunTrust Banks, Inc. 38,180 1,615
Bank of New York Mellon Corp. (The) 87,053 3,430 SVB Financial Group(Æ) 7,180 721
Barclays PLC - ADR 3,291 27 Synchrony Financial 41,995 1,171
BB&T Corp. 1,080 40 Torchmark Corp. 738 46
Berkshire Hathaway, Inc. Class B(Æ) 3,803 549 Travelers Cos., Inc. (The) 1,954 227
BlackRock, Inc. Class A 101 37 UBS Group AG(Æ) 90,500 1,247
Capital One Financial Corp. 45,062 3,023 US Bancorp 1,074 45
CBL & Associates Properties, Inc. (ö) 86,242 1,060 Validus Holdings, Ltd. 2,661 132
Charles Schwab Corp. (The) 5,031 143 Visa, Inc. Class A 2,046 160
Chubb, Ltd. 2,270 284 Voya Financial, Inc. 162,683 4,170

 

See accompanying notes which are an integral part of this quarterly report.

16 Russell U.S. Dynamic Equity Fund

 

Russell Investment Company
Russell U.S. Dynamic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Wells Fargo & Co. 3,477 167 Vertex Pharmaceuticals, Inc.(Æ) 1,311 127
White Mountains Insurance Group, Ltd. 54 44 WellCare Health Plans, Inc.(Æ) 10,100 1,079
Willis Towers Watson PLC 1,454 180       63,062
WP Glimcher, Inc.(ö) 13,056 166        
XL Group, Ltd. 1,727 60 Materials and Processing - 2.8%      
Zions Bancorporation 40,300 1,124 Air Products & Chemicals, Inc. 584 87
      106,092 Albemarle Corp. 693 58
        Bemis Co., Inc. 1,812 93
Health Care - 12.7%       Cabot Corp. 31,761 1,547
Abbott Laboratories 27,215 1,218 Cameco Corp. Class A 10,998 105
AbbVie, Inc. 13,879 919 Chemours Co. (The) 8,100 75
Aetna, Inc. 1,225 141 Crown Holdings, Inc.(Æ) 5,100 270
Alexion Pharmaceuticals, Inc.(Æ) 1,285 165 Domtar Corp. 1,690 67
Allergan PLC(Æ) 16,153 4,086 Dow Chemical Co. (The) 24,409 1,310
AmerisourceBergen Corp. Class A 11,060 942 Eastman Chemical Co. 1,431 93
Amgen, Inc. 28,682 4,934 Ecolab, Inc. 1,532 181
Anthem, Inc. 9,834 1,292 EI du Pont de Nemours & Co. 1,319 91
Baxter International, Inc. 28,366 1,362 Huntsman Corp. 24,933 386
Becton Dickinson and Co. 301 53 LyondellBasell Industries NV Class A 20,358 1,532
Biogen, Inc.(Æ) 14,203 4,118 Masco Corp. 8,502 310
Bruker Corp. 11,100 277 Monsanto Co. 16,950 1,810
Cardinal Health, Inc. 1,849 155 Mosaic Co. (The) 2,415 65
Celgene Corp.(Æ) 11,511 1,291 NewMarket Corp. 639 274
Cigna Corp. 5,051 651 Newmont Mining Corp. 2,189 96
Community Health Systems, Inc.(Æ) 36,300 464 Nucor Corp. 1,619 87
CR Bard, Inc. 3,970 888 Owens Corning 15,702 831
Edwards Lifesciences Corp.(Æ) 11,834 1,355 PPG Industries, Inc. 7,510 786
Endo International PLC(Æ) 16,490 286 Praxair, Inc. 3,339 389
Envision Healthcare Holdings, Inc.(Æ) 6,317 155 Reliance Steel & Aluminum Co. 19,872 1,559
Express Scripts Holding Co.(Æ) 748 57 Sonoco Products Co. 2,261 115
Gilead Sciences, Inc. 58,326 4,635 Steel Dynamics, Inc. 11,951 321
HCA Holdings, Inc.(Æ) 1,243 96 Trinseo SA 32,026 1,595
HMS Holdings Corp.(Æ) 5,403 107 WestRock Co. 1,289 55
Humana, Inc. 17,748 3,062       14,188
Icon PLC(Æ) 10,105 785        
Jazz Pharmaceuticals PLC(Æ) 2,907 439 Producer Durables - 11.4%      
Johnson & Johnson 15,051 1,885 3M Co. 608 108
Laboratory Corp. of America Holdings(Æ) 2,158 301 Accenture PLC Class A 509 57
Ligand Pharmaceuticals, Inc. Class B(Æ) 12,290 1,658 AECOM(Æ) 84,584 3,002
Mallinckrodt PLC(Æ) 16,700 1,125 American Airlines Group, Inc. 11,353 403
McKesson Corp. 7,966 1,550 Automatic Data Processing, Inc. 382 34
Medtronic PLC 270 24 Babcock & Wilcox Co. (The) 40,717 1,499
Merck & Co., Inc. 30,482 1,788 Boeing Co. (The) 14,657 1,959
Molina Healthcare, Inc.(Æ) 7,900 449 Bombardier, Inc. Class B(Æ) 19,164 29
Mylan NV(Æ) 71,394 3,341 Caterpillar, Inc. 1,185 98
Myriad Genetics, Inc.(Æ) 11,589 359 Colfax Corp.(Æ) 35,700 1,048
Ophthotech Corp.(Æ) 40,923 2,629 CoStar Group, Inc.(Æ) 508 106
Perrigo Co. PLC 1,193 109 CSX Corp. 2,922 83
Pfizer, Inc. 29,148 1,075 Cummins, Inc. 976 120
Puma Biotechnology, Inc.(Æ) 1,750 87 Danaher Corp. 621 51
Quest Diagnostics, Inc. 11,696 1,010 Deere & Co. 1,284 100
Quorum Health Corp.(Æ) 9,075 99 Delta Air Lines, Inc. 75,685 2,933
Regeneron Pharmaceuticals, Inc.(Æ) 3,491 1,484 Dover Corp. 24,325 1,737
Shire PLC - ADR 652 127 Eaton Corp. PLC 1,259 80
Stryker Corp. 477 55 EMCOR Group, Inc. 25,915 1,443
TESARO, Inc.(Æ) 34,524 3,219 Emerson Electric Co. 804 45
Thermo Fisher Scientific, Inc. 21,558 3,424 Euronav NV 44,511 385
United Therapeutics Corp.(Æ) 14,825 1,794 FedEx Corp. 24,583 3,980
UnitedHealth Group, Inc. 1,223 175 Fortive Corp. 310 15
Veeva Systems, Inc. Class A(Æ) 4,100 156 General Dynamics Corp. 323 47

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Dynamic Equity Fund 17

 

Russell Investment Company
Russell U.S. Dynamic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
General Electric Co. 70,844 2,206 Citrix Systems, Inc.(Æ) 20,849 1,858
Hawaiian Holdings, Inc.(Æ) 28,457 1,296 Computer Sciences Corp. 66,413 3,177
HD Supply Holdings, Inc.(Æ) 5,535 200 Corning, Inc. 57,020 1,267
Hertz Global Holdings, Inc.(Æ) 2,897 141 Criteo SA - ADR(Æ) 1,384 61
Honeywell International, Inc. 736 86 Electronic Arts, Inc.(Æ) 11,400 870
Huntington Ingalls Industries, Inc. 17,076 2,947 EMC Corp. 6,575 186
Illinois Tool Works, Inc. 386 44 Facebook, Inc. Class A(Æ) 45,750 5,670
Insperity, Inc. 10,100 793 Finisar Corp.(Æ) 34,200 642
JB Hunt Transport Services, Inc. 1,231 102 Flextronics International, Ltd.(Æ) 73,495 931
L-3 Communications Holdings, Inc. 7,445 1,129 GoDaddy, Inc. Class A(Æ) 8,100 242
Lockheed Martin Corp. 435 110 Groupon, Inc. Class A(Æ) 45,018 217
ManpowerGroup, Inc. 14,100 978 Harris Corp. 31,476 2,726
MSC Industrial Direct Co., Inc. Class A 496 36 Hewlett Packard Enterprise Co. 159,034 3,343
Norfolk Southern Corp. 1,232 111 HP, Inc. 98,818 1,384
Northrop Grumman Corp. 225 49 IAC/InterActiveCorp(Æ) 28,078 1,627
Orbital ATK, Inc. 12,300 1,072 Imperva, Inc.(Æ) 1,021 48
PACCAR, Inc. 868 51 Infinera Corp.(Æ) 18,200 159
Parker-Hannifin Corp. 17,200 1,964 Intel Corp. 55,565 1,937
Quanta Services, Inc.(Æ) 86,863 2,224 International Business Machines Corp. 969 156
Raytheon Co. 1,102 154 Intuit, Inc. 14,038 1,558
Republic Services, Inc. Class A 1,981 101 Jabil Circuit, Inc. 51,200 1,042
Rockwell Automation, Inc. 19,580 2,240 JDS Uniphase Corp.(Æ) 144,800 1,032
Southwest Airlines Co. 42,669 1,579 Juniper Networks, Inc. 45,600 1,035
Spirit AeroSystems Holdings, Inc. Class A(Æ) 27,269 1,183 Leidos Holdings, Inc. 9,700 485
Stanley Black & Decker, Inc. 14,833 1,805 Manhattan Associates, Inc.(Æ) 3,213 187
Terex Corp. 33,906 818 Marvell Technology Group, Ltd. 105,279 1,237
Textron, Inc. 32,290 1,259 Microsoft Corp. 170,770 9,679
Trinity Industries, Inc. 57,600 1,337 MicroStrategy, Inc. Class A(Æ) 4,374 765
Triumph Group, Inc. 17,700 546 NetApp, Inc. 46,615 1,228
Union Pacific Corp. 38,513 3,584 Nuance Communications, Inc.(Æ) 29,800 479
United Continental Holdings, Inc.(Æ) 35,305 1,655 NVIDIA Corp. 1,026 59
United Parcel Service, Inc. Class B 562 61 NXP Semiconductors NV(Æ) 39,733 3,341
United Technologies Corp. 1,623 175 ON Semiconductor Corp.(Æ) 130,255 1,307
Waste Management, Inc. 590 39 Open Text Corp. 10,664 650
WESCO International, Inc.(Æ) 7,036 392 Oracle Corp. 135,734 5,571
Xerox Corp. 126,374 1,302 Palo Alto Networks, Inc.(Æ) 361 47
Xylem, Inc. 64,532 3,085 QUALCOMM, Inc. 1,648 103
Zebra Technologies Corp. Class A(Æ) 8,900 472 Rackspace Hosting, Inc.(Æ) 69,679 1,633
      56,688 Red Hat, Inc.(Æ) 11,400 858
        Salesforce.com, Inc.(Æ) 2,677 219
Technology - 23.3%       Sanmina Corp.(Æ) 11,600 294
Adobe Systems, Inc.(Æ) 36,344 3,557 Seagate Technology PLC 65,525 2,099
Advanced Micro Devices, Inc.(Æ) 155,500 1,067 Symantec Corp. 139,121 2,842
Alibaba Group Holding, Ltd. - ADR(Æ) 37,080 3,058 SYNNEX Corp. 2,700 271
Alphabet, Inc. Class A(Æ) 690 546 Synopsys, Inc.(Æ) 6,561 355
Alphabet, Inc. Class C(Æ) 9,251 7,112 Tableau Software, Inc. Class A(Æ) 13,645 771
Amdocs, Ltd. 983 57 Take-Two Interactive Software, Inc.(Æ) 39,382 1,582
Amkor Technology, Inc.(Æ) 30,600 193 Tech Data Corp.(Æ) 12,726 992
Apple, Inc. 110,078 11,471 Teradata Corp.(Æ) 8,032 228
Applied Materials, Inc. 38,381 1,009 Teradyne, Inc. 34,892 689
ARRIS International PLC(Æ) 47,700 1,299 Texas Instruments, Inc. 869 61
Arrow Electronics, Inc.(Æ) 1,786 119 VeriFone Systems, Inc.(Æ) 44,200 847
Aspen Technology, Inc.(Æ) 37,278 1,562 VeriSign, Inc.(Æ) 19,321 1,673
Broadcom, Ltd. 24,305 3,937 Vishay Intertechnology, Inc. 82,909 1,105
CA, Inc. 44,170 1,531 VMware, Inc. Class A(Æ) 15,900 1,160
Cadence Design Systems, Inc.(Æ) 48,830 1,174 Western Digital Corp. 29,326 1,393
CDW Corp. 19,800 850 Yahoo!, Inc.(Æ) 1,326 51
Ciena Corp.(Æ) 30,300 582 Zynga, Inc. Class A(Æ) 230,307 661
Cirrus Logic, Inc.(Æ) 4,500 219       115,769
Cisco Systems, Inc. 10,997 336        

 

See accompanying notes which are an integral part of this quarterly report.

18 Russell U.S. Dynamic Equity Fund

 

Russell Investment Company
Russell U.S. Dynamic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)         Amounts in thousands (except share amounts)      
    Principal   Fair           Principal   Fair  
  Amount ($) or   Value         Amount ($) or   Value  
    Shares   $           Shares   $  
Utilities - 2.7%             Consumer Staples - (0.1)%            
AES Corp. 128,390   1,586     Snyders-Lance, Inc.   (17,180 ) (589 )
Ameren Corp. 1,055   55                  
American Electric Power Co., Inc. 4,817   334     Energy - (0.1)%            
American Water Works Co., Inc. 661   55     SunPower Corp. Class A(Æ)   (30,045 ) (438 )
AT&T, Inc. 51,675   2,237                  
CenturyLink, Inc. 6,369   200     Financial Services - (0.7)%            
CMS Energy Corp. 959   43     BOK Financial Corp.   (3,487 ) (227 )
Consolidated Edison, Inc. 3,129   251     First Financial Bankshares, Inc.   (18,296 ) (625 )
Dominion Resources, Inc. 1,466   114     New York Community Bancorp, Inc.   (31,813 ) (460 )
DTE Energy Co. 1,092   107     TFS Financial Corp.   (33,655 ) (612 )
Duke Energy Corp. 1,415   121     United Bankshares, Inc.   (14,465 ) (554 )
Edison International 16,600   1,285     Weyerhaeuser Co.(ö)   (10,102 ) (331 )
Exelon Corp. 31,800   1,186     Willis Towers Watson PLC   (4,381 ) (542 )
FirstEnergy Corp. 18,700   653               (3,351 )
Frontier Communications Corp. 16,403   85     Health Care - (0.5)%            
Globalstar, Inc.(Æ) 80,798   98     Acadia Healthcare Co., Inc.(Æ)   (9,722 ) (549 )
Hawaiian Electric Industries, Inc. 1,473   46     Alnylam Pharmaceuticals, Inc.(Æ)   (9,381 ) (639 )
NextEra Energy, Inc. 2,098   269     DexCom, Inc.(Æ)   (8,598 ) (793 )
NRG Energy, Inc. 39,337   544     OPKO Health, Inc.(Æ)   (63,470 ) (632 )
PG&E Corp. 1,610   103                  
Public Service Enterprise Group, Inc. 1,550   71     Producer Durables - (0.4)%         (2,613 )
Southern Co. (The) 3,280   176     Macquarie Infrastructure Corp.   (8,486 ) (650 )
Telephone & Data Systems, Inc. 11,536   363                  
T-Mobile US, Inc.(Æ) 21,477   995     Stericycle, Inc.(Æ)   (5,825 ) (526 )
US Cellular Corp.(Æ) 3,840   155     XPO Logistics, Inc.(Æ)   (22,616 ) (670 )
Verizon Communications, Inc. 37,808   2,095               (1,846 )
WEC Energy Group, Inc. 1,051   68     Technology - (1.1)%            
Xcel Energy, Inc. 1,670   73     Advanced Micro Devices, Inc.(Æ)   (96,852 ) (664 )
        13,368     Ambarella, Inc.(Æ)   (3,223 ) (187 )
              Arista Networks, Inc.(Æ)   (4,760 ) (339 )
Total Common Stocks             Cavium, Inc.(Æ)   (10,771 ) (503 )
(cost $456,658)       505,817     Inovalon Holdings, Inc. Class A(Æ)   (25,122 ) (468 )
              MACOM Technology Solutions Holdings,        
              Inc.(Æ)   (12,785 ) (505 )
Short-Term Investments - 2.2%             NetScout Systems, Inc.(Æ)   (16,665 ) (466 )
Russell U.S. Cash Management Fund 11,238,297 (8) 11,238                  
Total Short-Term Investments             Palo Alto Networks, Inc.(Æ)   (4,381 ) (573 )
(cost $11,238)       11,238     Shopify, Inc. Class A(Æ)   (12,360 ) (424 )
              Universal Display Corp.(Æ)   (5,025 ) (356 )
Other Securities - 1.7%             Zendesk, Inc.(Æ)   (25,398 ) (768 )
Russell U.S. Cash Collateral Fund(×) 8,433,716 (8) 8,434               (5,253 )
Total Other Securities             Utilities - 0.0%            
(cost $8,434)       8,434     Globalstar, Inc.(Æ)   (80,798 ) (165 )
Total Investments 105.6%             Total Securities Sold Short            
(identified cost $476,330)       525,489     (proceeds $18,171)         (18,901 )
Securities Sold Short - (3.8)%                          
Consumer Discretionary - (0.9)%                          
CarMax, Inc.(Æ) (11,422 ) (665 )   Other Assets and Liabilities, Net        
CST Brands, Inc. (4,345 ) (194 ) -(1.8%)       (9,115 )
Fitbit, Inc. Class A(Æ) (41,669 ) (569 )   Net Assets - 100.0%         497,473  
JC Penney Co., Inc.(Æ) (35,792 ) (346 )                
Lions Gate Entertainment Corp. (25,703 ) (514 )                
Mobileye NV(Æ) (15,481 ) (742 )                
Nord Anglia Education, Inc.(Æ) (14,165 ) (308 )                
Pandora Media, Inc.(Æ) (29,530 ) (402 )                
Tesla Motors, Inc.(Æ) (2,883 ) (677 )                
Under Armour, Inc. Class A(Æ) (5,813 ) (229 )                
        (4,646 )                

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Dynamic Equity Fund 19

 

Russell Investment Company
Russell U.S. Dynamic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
Russell 1000 Mini Index Futures 33 USD 3,964 09/16 44  
S&P 500 E-Mini Index Futures 68 USD 7,372 09/16 (1 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               43  

 

Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                Practical        
Portfolio Summary Level 1   Level 2 Level 3 Expedient (a)   Total  
Common Stocks                          
Consumer Discretionary $ 80,893   $ — $ — $ — $   80,893  
Consumer Staples   19,123     —   —   —     19,123  
Energy   36,634     —   —   —     36,634  
Financial Services   106,092     —   —   —     106,092  
Health Care   63,062     —   —   —     63,062  
Materials and Processing   14,188     —   —   —     14,188  
Producer Durables   56,688     —   —   —     56,688  
Technology   115,769     —   —   —     115,769  
Utilities   13,368     —   —   —     13,368  
Short-Term Investments —   — — 11,238   11,238  
Other Securities —   — — 8,434   8,434  
Total Investments 505,817   — — 19,672   525,489  
Securities Sold Short** (18,901 ) — — —   (18,901 )
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 44   — — —   44  
 
Liabilities                          
Futures Contracts (1 ) — — —   (1 )
Total Other Financial Instruments* $ 43   $ — $ — $ — $   43  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
**    Refer to Schedule of Investments for detailed sector breakout.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

20 Russell U.S. Dynamic Equity Fund

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 99.0%       Tenneco, Inc.(Æ) 33,355 1,885
Consumer Discretionary - 14.9%       Thomson Reuters Corp. 8,917 376
Amazon.com, Inc.(Æ) 45,083 34,209 Thor Industries, Inc. 25,800 1,975
AutoZone, Inc.(Æ) 2,670 2,173 Time Warner, Inc. 73,060 5,600
Bed Bath & Beyond, Inc. 46,247 2,079 Time, Inc. 202,463 3,306
Best Buy Co., Inc. 100,285 3,370 TJX Cos., Inc. 88,665 7,246
Big Lots, Inc. 55,788 2,967 Toll Brothers, Inc.(Æ) 27,172 761
Bloomin' Brands, Inc. 90,892 1,634 Toyota Motor Corp. - ADR 46,832 5,226
Brinker International, Inc. 49,728 2,344 Tupperware Brands Corp. 45,717 2,866
Carnival Corp. 33,706 1,575 VF Corp. 117,175 7,315
Chipotle Mexican Grill, Inc. Class A(Æ) 20,097 8,521 Visteon Corp.(Æ) 42,633 2,988
Choice Hotels International, Inc. 13,110 633 Wal-Mart Stores, Inc. 365,760 26,690
Coach, Inc. 16,237 700 Walt Disney Co. (The) 93,272 8,949
Comcast Corp. Class A 154,415 10,384 Whirlpool Corp. 33,100 6,367
Cooper Tire & Rubber Co. 72,006 2,375 Yum! Brands, Inc. 86,928 7,773
Costco Wholesale Corp. 45,830 7,664 Zillow Group, Inc. Class A(Æ) 10,768 424
Dana Holding Corp. 219,107 2,989       441,384
Darden Restaurants, Inc. 4,393 270        
Deckers Outdoor Corp.(Æ) 61,541 4,062 Consumer Staples - 8.6%      
Delphi Automotive PLC 63,270 4,291 Altria Group, Inc. 508,786 34,445
Dillard's, Inc. Class A 32,045 2,169 Archer-Daniels-Midland Co. 3,394 153
Discovery Communications, Inc. Class A(Æ) 96,927 2,432 Campbell Soup Co. 21,908 1,364
Dollar General Corp. 190,892 18,085 Clorox Co. (The) 2,069 271
eBay, Inc.(Æ)(Û) 136,473 4,253 Coca-Cola Co. (The) 216,100 9,428
Estee Lauder Cos., Inc. (The) Class A 146,920 13,649 Coca-Cola European Partners PLC 99,038 3,697
Fiat Chrysler Automobiles NV(Æ) 373,477 2,394 Colgate-Palmolive Co. 38,264 2,848
Foot Locker, Inc. 5,600 334 ConAgra Foods, Inc. 71,087 3,324
Ford Motor Co. 39,150 496 Core-Mark Holding Co., Inc. 6,024 295
Gap, Inc. (The) 260,400 6,716 CVS Health Corp. 105,083 9,743
General Motors Co.(Û) 453,775 14,312 Dean Foods Co. 141,374 2,610
Goodyear Tire & Rubber Co. (The) 175,906 5,043 Dr Pepper Snapple Group, Inc. 137,085 13,504
Harman International Industries, Inc. 19,200 1,587 Herbalife, Ltd.(Æ) 15,749 1,071
Hasbro, Inc. 9,763 793 Hershey Co. (The) 29,600 3,278
Home Depot, Inc. (The) 282,859 39,102 Hormel Foods Corp. 141,567 5,288
Johnson Controls, Inc. 129,437 5,944 Ingredion, Inc. 23,673 3,154
Kohl's Corp. 6,007 250 JM Smucker Co. (The) 25,240 3,891
Lear Corp. 30,323 3,440 Kimberly-Clark Corp. 51,168 6,629
Leggett & Platt, Inc. 6,453 339 Kroger Co. (The) 457,139 15,630
Lennar Corp. Class A 208,441 9,755 Mead Johnson Nutrition Co. Class A 119,050 10,619
Lowe's Cos., Inc. 151,625 12,476 Molson Coors Brewing Co. Class B 36,471 3,726
Macy's, Inc. 130,307 4,669 Mondelez International, Inc. Class A 147,632 6,493
Magna International, Inc. Class A 93,761 3,616 Monster Beverage Corp.(Æ) 41,484 6,664
Marriott International, Inc. Class A 12,347 885 PepsiCo, Inc. 235,192 25,617
McDonald's Corp. 61,954 7,289 Philip Morris International, Inc. 247,185 24,783
Michael Kors Holdings, Ltd.(Æ) 194,984 10,085 Pinnacle Foods, Inc. 130,339 6,544
Newell Brands, Inc. 137,264 7,201 Procter & Gamble Co. (The) 349,224 29,890
News Corp. Class A 308,400 4,000 Reynolds American, Inc. 2,855 143
Nike, Inc. Class B 295,071 16,376 Sanderson Farms, Inc. 5,560 487
Nordstrom, Inc. 9,551 422 Sysco Corp. 189,413 9,810
NVR, Inc.(Æ) 3,491 5,952 TreeHouse Foods, Inc.(Æ) 58,505 6,037
Office Depot, Inc. 163,447 566 Tyson Foods, Inc. Class A 16,043 1,181
O'Reilly Automotive, Inc.(Æ) 39,171 11,384 United Natural Foods, Inc.(Æ) 4,800 240
Priceline Group, Inc. (The)(Æ) 1,875 2,533 Walgreens Boots Alliance, Inc. 3,907 310
PulteGroup, Inc. 45,754 969       253,167
PVH Corp. 59,961 6,060        
Ross Stores, Inc. 108,542 6,711 Energy - 6.1%      
Scripps Networks Interactive, Inc. Class A 35,025 2,314 Anadarko Petroleum Corp. 128,266 6,994
Signet Jewelers, Ltd. 18,243 1,604 Apache Corp. 125,904 6,610
Starbucks Corp. 150,792 8,753 Baker Hughes, Inc. 4,089 196
Target Corp. 191,676 14,439 BP PLC - ADR 601,917 20,706

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Strategic Equity Fund 21

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Canadian Natural Resources, Ltd. 317,753 9,606 Bank of New York Mellon Corp. (The) 165,535 6,522
Chevron Corp. 145,526 14,914 BB&T Corp. 33,500 1,235
ConocoPhillips 226,690 9,253 Berkshire Hathaway, Inc. Class B(Æ) 199,308 28,754
CVR Energy, Inc. 47,755 707 BlackRock, Inc. Class A 13,184 4,829
Devon Energy Corp. 276,253 10,575 Blackstone Group, LP (The) 290,416 7,795
Dril-Quip, Inc.(Æ) 5,982 326 Boston Properties, Inc.(ö) 2,642 376
Ensco PLC Class A 284,952 2,613 Broadridge Financial Solutions, Inc. 6,442 436
EOG Resources, Inc. 11,258 920 Capital One Financial Corp. 15,924 1,068
Exxon Mobil Corp. 395,134 35,147 Care Capital Properties, Inc.(ö) 21,873 647
First Solar, Inc.(Æ) 17,571 820 CBL & Associates Properties, Inc. Class      
FMC Technologies, Inc.(Æ) 21,049 534      REIT(ö) 206,387 2,537
Frank's International NV 22,486 277 Charles Schwab Corp. (The) 22,849 649
Halliburton Co. 3,967 173 Chubb, Ltd. 6,077 761
Helmerich & Payne, Inc. 43,519 2,697 Citigroup, Inc.(Û) 693,395 30,378
Hess Corp. 1,876 101 Citizens Financial Group, Inc. 228,453 5,101
Kinder Morgan, Inc. 30,011 610 CME Group, Inc. Class A 6,140 628
Marathon Oil Corp. 48,177 657 CNA Financial Corp. 56,584 1,801
Marathon Petroleum Corp. 4,152 164 Comerica, Inc. 105,800 4,786
Murphy Oil Corp. 33,591 921 Crown Castle International Corp.(ö) 7,032 682
Nabors Industries, Ltd. 137,696 1,239 East West Bancorp, Inc. 22,843 782
National Oilwell Varco, Inc. 13,011 421 Endurance Specialty Holdings, Ltd. 64,607 4,369
Noble Corp. PLC 153,551 1,133 Equifax, Inc. 4,611 611
Noble Energy, Inc. 11,483 410 Equity Commonwealth(Æ)(ö) 41,641 1,250
Occidental Petroleum Corp. 142,251 10,630 Equity LifeStyle Properties, Inc. Class A(ö) 42,333 3,481
Oceaneering International, Inc. 39,130 1,091 Equity Residential(ö) 10,202 694
Oil States International, Inc.(Æ) 20,793 643 Everest Re Group, Ltd. 45,550 8,609
Patterson-UTI Energy, Inc. 21,233 412 FactSet Research Systems, Inc. 18,267 3,141
PBF Energy, Inc. Class A 8,154 182 Fidelity National Information Services, Inc. 3,789 301
Phillips 66 128,242 9,754 First American Financial Corp. 22,888 957
Pioneer Natural Resources Co. 40,567 6,595 First Niagara Financial Group, Inc. 74,316 757
Rice Energy, Inc.(Æ) 34,677 809 Fiserv, Inc.(Æ) 8,877 980
Rowan Cos. PLC Class A(Æ) 171,680 2,616 FNFV Group(Æ) 59,973 716
Schlumberger, Ltd. 123,303 9,928 Forest City Realty Trust, Inc. Class A(ö) 35,155 831
Spectra Energy Corp. 13,894 500 Genworth Financial, Inc. Class A(Æ) 135,474 387
Suncor Energy, Inc. 7,966 214 Global Payments, Inc. 18,010 1,345
Superior Energy Services, Inc.(Æ) 65,234 1,042 Goldman Sachs Group, Inc. (The) 6,237 991
Tesoro Corp. 37,370 2,846 Hanover Insurance Group, Inc. (The) 67,945 5,595
Valero Energy Corp. 101,064 5,284 Hartford Financial Services Group, Inc. 28,757 1,146
World Fuel Services Corp. 16,011 762 HCP, Inc.(ö) 17,349 681
      182,032 Hospitality Properties Trust(ö) 14,420 460
        Intercontinental Exchange, Inc. 1,724 456
Financial Services - 19.1%       Invesco, Ltd. 27,238 795
Affiliated Managers Group, Inc.(Æ) 56,082 8,232 Jack Henry & Associates, Inc. 3,317 296
Aflac, Inc. 76,454 5,526 Jones Lang LaSalle, Inc. 17,237 1,887
Allied World Assurance Co. Holdings AG 52,118 2,136 JPMorgan Chase & Co.(Û) 658,636 42,133
Allstate Corp. (The) 151,052 10,321 KeyCorp 656,323 7,679
Ally Financial, Inc. 101,525 1,832 KKR & Co., LP 646,960 9,342
American Capital Agency Corp.(ö) 33,625 659 Liberty Property Trust(ö) 5,773 239
American Express Co. 168,942 10,890 Loews Corp. 375,100 15,503
American Financial Group, Inc. 35,977 2,630 Markel Corp.(Æ) 1,598 1,516
American International Group, Inc. 46,796 2,548 MasterCard, Inc. Class A 261,280 24,884
Ameriprise Financial, Inc. 48,300 4,629 MetLife, Inc. 329,642 14,089
Annaly Capital Management, Inc.(ö) 61,996 681 MFA Financial, Inc.(ö) 18,125 136
Arch Capital Group, Ltd.(Æ) 5,259 382 Mid-America Apartment Communities, Inc.      
Arthur J Gallagher & Co. 5,858 288 (ö) 920 98
Aspen Insurance Holdings, Ltd. 154,535 7,102 Moody's Corp. 84,268 8,933
Assured Guaranty, Ltd. 151,154 4,049 Morgan Stanley 135,503 3,893
Axis Capital Holdings, Ltd. 35,007 1,946 Navient Corp. 53,504 760
Bank of America Corp.(Û) 2,944,252 42,662 New York Community Bancorp, Inc. 15,448 223
Bank of Montreal 15,201 975 Northern Trust Corp. 57,500 3,886

 

See accompanying notes which are an integral part of this quarterly report.

22 Russell U.S. Strategic Equity Fund

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Old Republic International Corp. 5,193 101 DaVita HealthCare Partners, Inc.(Æ) 2,061 160
Piedmont Office Realty Trust, Inc. Class A(ö) 35,827 786 Eli Lilly & Co. 94,313 7,818
PNC Financial Services Group, Inc. (The) 171,013 14,134 Express Scripts Holding Co.(Æ) 44,215 3,363
Popular, Inc. 101,448 3,418 Gilead Sciences, Inc.(Û) 123,067 9,780
Post Properties, Inc.(ö) 27,629 1,757 HCA Holdings, Inc.(Æ) 2,946 227
Principal Financial Group, Inc. 69,261 3,230 Henry Schein, Inc.(Æ) 3,390 614
ProAssurance Corp. 6,812 352 Horizon Pharma PLC(Æ) 204,740 3,949
Progressive Corp. (The) 11,654 379 Humana, Inc. 34,539 5,960
Prudential Financial, Inc. 129,848 9,776 Icon PLC(Æ) 17,705 1,375
Realty Income Corp.(ö) 7,692 550 IDEXX Laboratories, Inc.(Æ) 77,089 7,230
Regency Centers Corp.(ö) 1,155 98 Jazz Pharmaceuticals PLC(Æ) 26,770 4,041
Regions Financial Corp. 763,702 7,003 Johnson & Johnson 508,807 63,718
Reinsurance Group of America, Inc. Class A 94,276 9,357 Laboratory Corp. of America Holdings(Æ) 8,948 1,249
RenaissanceRe Holdings, Ltd. 2,061 242 Ligand Pharmaceuticals, Inc. Class B(Æ) 24,257 3,272
Ryman Hospitality Properties, Inc.(ö) 54,783 3,081 Mallinckrodt PLC(Æ) 47,920 3,227
Santander Consumer USA Holdings, Inc.(Æ) 393,997 4,330 McKesson Corp. 12,293 2,392
Senior Housing Properties Trust(ö) 11,984 266 Medtronic PLC 217,126 19,027
Simon Property Group, Inc.(ö) 57,698 13,100 Merck & Co., Inc. 702,734 41,222
Starwood Property Trust, Inc.(ö) 29,345 640 Mylan NV(Æ) 203,477 9,521
State Street Corp. 300,779 19,785 Myriad Genetics, Inc.(Æ) 15,625 484
SunTrust Banks, Inc. 41,475 1,754 Ophthotech Corp.(Æ) 73,497 4,721
Synchrony Financial 144,740 4,035 Patterson Cos., Inc. 82,081 4,052
T Rowe Price Group, Inc. 14,644 1,035 Pfizer, Inc. 1,005,193 37,082
Taubman Centers, Inc.(ö) 11,316 916 Premier, Inc. Class A(Æ) 13,742 449
Torchmark Corp. 4,582 284 Quest Diagnostics, Inc. 23,488 2,028
Total System Services, Inc. 9,467 482 ResMed, Inc. 106,810 7,357
Travelers Cos., Inc. (The) 7,468 868 Shire PLC - ADR 1,518 295
Two Harbors Investment Corp.(ö) 337,194 2,950 St. Jude Medical, Inc. 3,819 317
US Bancorp 175,693 7,409 Stryker Corp. 66,475 7,730
Validus Holdings, Ltd. 11,006 544 Teleflex, Inc. 2,130 384
Visa, Inc. Class A 137,926 10,765 TESARO, Inc.(Æ) 61,805 5,763
Voya Financial, Inc. 235,796 6,043 Thermo Fisher Scientific, Inc. 43,289 6,876
Wells Fargo & Co. 895,590 42,961 United Therapeutics Corp.(Æ) 29,200 3,533
White Mountains Insurance Group, Ltd. 536 440 UnitedHealth Group, Inc. 159,754 22,877
WP Glimcher, Inc.(ö) 40,006 507 VCA, Inc.(Æ) 10,760 768
WR Berkley Corp. 43,621 2,538 VWR Corp.(Æ) 25,473 798
XL Group, Ltd. 242,710 8,400 Zimmer Biomet Holdings, Inc. 2,659 349
      565,621 Zoetis, Inc. Class A 277,937 14,027
              422,668
Health Care - 14.3%              
Abbott Laboratories 34,374 1,538 Materials and Processing - 2.8%      
AbbVie, Inc. 92,269 6,111 Acuity Brands, Inc. 744 195
Aetna, Inc. 38,055 4,384 Air Products & Chemicals, Inc. 3,504 524
Agilent Technologies, Inc. 20,762 999 Albemarle Corp. 6,339 533
Allergan PLC(Æ) 29,405 7,438 Alcoa, Inc. 4,272 45
AmerisourceBergen Corp. Class A 4,447 379 AptarGroup, Inc. 3,239 253
Amgen, Inc.(Û) 32,651 5,617 Bombardier, Inc. Class B(Æ) 338,784 512
Anthem, Inc. 9,185 1,206 Cabot Corp. 58,659 2,856
Baxter International, Inc. 6,654 320 CRH PLC - ADR 502,900 15,469
Becton Dickinson and Co. 4,575 805 Crown Holdings, Inc.(Æ) 39,312 2,082
Biogen, Inc.(Æ)(Û) 64,996 18,844 Domtar Corp. 7,363 290
Bio-Rad Laboratories, Inc. Class A(Æ) 26,124 3,790 Dow Chemical Co. (The) 100,306 5,383
Bristol-Myers Squibb Co. 210,862 15,775 Eastman Chemical Co. 35,823 2,337
Bruker Corp. 26,519 661 Ecolab, Inc. 6,326 749
Cardinal Health, Inc. 312,501 26,125 EI du Pont de Nemours & Co. 7,123 493
Cerner Corp.(Æ) 241,587 15,073 Huntsman Corp. 35,702 552
Charles River Laboratories International,       International Flavors & Fragrances, Inc. 11,332 1,510
     Inc.(Æ) 5,703 501 International Paper Co. 105,600 4,837
Cigna Corp. 6,091 785 Louisiana-Pacific Corp.(Æ) 174,801 3,531
CR Bard, Inc. 19,139 4,282 LyondellBasell Industries NV Class A 54,722 4,118

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Strategic Equity Fund 23

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Masco Corp. 8,419 307 ManpowerGroup, Inc. 10,800 749
Monsanto Co. 30,868 3,296 Mettler-Toledo International, Inc.(Æ) 2,915 1,199
NewMarket Corp. 500 214 Moog, Inc. Class A(Æ) 9,400 518
Newmont Mining Corp. 13,721 604 National Instruments Corp. 12,023 345
Nucor Corp. 1,735 93 Norfolk Southern Corp. 103,143 9,260
Owens Corning 30,596 1,619 Northrop Grumman Corp. 44,285 9,593
PPG Industries, Inc. 89,092 9,329 Parker-Hannifin Corp. 5,066 578
Praxair, Inc. 7,010 817 Quanta Services, Inc.(Æ) 125,392 3,210
Reliance Steel & Aluminum Co. 90,143 7,071 Raytheon Co. 132,620 18,504
Rio Tinto PLC - ADR 90,800 2,980 Republic Services, Inc. Class A 8,142 417
Sherwin-Williams Co. (The) 5,901 1,769 Robert Half International, Inc. 3,907 143
Sonoco Products Co. 4,883 249 Rockwell Automation, Inc. 39,069 4,469
Steel Dynamics, Inc. 13,497 362 Snap-on, Inc. 16,272 2,557
Tahoe Resources, Inc. 28,739 447 Southwest Airlines Co. 398,622 14,753
Trinseo SA 63,149 3,144 Spirit AeroSystems Holdings, Inc. Class A(Æ) 69,559 3,017
Westlake Chemical Corp. 104,399 4,775 Stanley Black & Decker, Inc. 122,181 14,869
WestRock Co. 6,634 285 Terex Corp. 187,411 4,524
      83,630 Toro Co. (The) 2,609 240
        TransDigm Group, Inc.(Æ) 40,424 11,299
Producer Durables - 10.6%       Trinity Industries, Inc. 125,304 2,908
3M Co. 3,537 631 Union Pacific Corp. 266,455 24,794
Accenture PLC Class A 127,147 14,343 United Continental Holdings, Inc.(Æ) 69,611 3,264
AECOM(Æ) 225,015 7,986 United Technologies Corp. 79,666 8,576
AerCap Holdings NV(Æ) 170,385 6,221 Verisk Analytics, Inc. Class A(Æ) 65,333 5,572
American Airlines Group, Inc. 259,528 9,213 Wabtec Corp. 2,899 199
AO Smith Corp. 2,779 258 Waste Management, Inc. 6,891 456
Avery Dennison Corp. 13,261 1,033 Waters Corp.(Æ) 3,368 535
B/E Aerospace, Inc. 60,546 2,896 WESCO International, Inc.(Æ) 6,368 355
Babcock & Wilcox Co. (The) 103,045 3,793 Xerox Corp. 271,441 2,796
Boeing Co. (The) 99,246 13,265 Xylem, Inc. 131,506 6,287
Caterpillar, Inc. 73,148 6,054 Zebra Technologies Corp. Class A(Æ) 16,900 896
CH Robinson Worldwide, Inc. 48,285 3,362       314,602
Chicago Bridge & Iron Co. 85,461 2,889        
Copart, Inc.(Æ) 4,109 207 Technology - 16.5%      
CSX Corp. 24,881 705 Adobe Systems, Inc.(Æ) 196,561 19,235
Danaher Corp. 66,146 5,387 Advanced Micro Devices, Inc.(Æ) 426,253 2,924
Deere & Co. 4,409 343 Akamai Technologies, Inc.(Æ) 1,538 78
Delta Air Lines, Inc. 287,668 11,147 Alibaba Group Holding, Ltd. - ADR(Æ) 65,964 5,441
Eaton Corp. PLC 65,834 4,174 Alphabet, Inc. Class A(Æ) 34,979 27,680
EMCOR Group, Inc. 58,109 3,237 Alphabet, Inc. Class C(Æ) 57,821 44,452
EnerSys 3,700 231 Amdocs, Ltd. 8,047 470
Euronav NV 84,825 735 Analog Devices, Inc. 5,975 381
Expeditors International of Washington, Inc. 113,500 5,610 Anixter International, Inc.(Æ) 53,095 3,254
FedEx Corp. 42,734 6,919 Ansys, Inc.(Æ) 3,820 341
Flir Systems, Inc. 11,941 389 Apple, Inc. 276,157 28,778
Fluor Corp. 30,813 1,649 Applied Materials, Inc. 205,606 5,405
Fortive Corp. 52,990 2,555 Arrow Electronics, Inc.(Æ) 12,327 820
General Dynamics Corp. 68,260 10,027 Aspen Technology, Inc.(Æ) 73,410 3,075
General Electric Co. 66,864 2,082 Avnet, Inc. 85,008 3,494
Genpact, Ltd.(Æ) 17,577 471 Black Knight Financial Services, Inc. Class      
Hawaiian Holdings, Inc.(Æ) 59,633 2,715       A(Æ) 8,823 343
Hertz Global Holdings, Inc.(Æ) 9,942 484 Broadcom, Ltd. 43,115 6,984
Honeywell International, Inc. 124,186 14,447 CA, Inc. 99,197 3,437
Huntington Ingalls Industries, Inc. 18,923 3,266 Cadence Design Systems, Inc.(Æ) 128,448 3,089
IDEX Corp. 3,706 333 Ciena Corp.(Æ) 23,300 447
Insperity, Inc. 11,797 926 Cisco Systems, Inc. 779,985 23,813
JB Hunt Transport Services, Inc. 4,329 360 Citrix Systems, Inc.(Æ)(Û) 41,092 3,663
L-3 Communications Holdings, Inc. Class 3 19,600 2,972 Cognizant Technology Solutions Corp. Class      
Lincoln Electric Holdings, Inc. 29,005 1,800      A(Æ) 3,975 229
Lockheed Martin Corp. 10,307 2,605 Computer Sciences Corp. 132,322 6,329

 

See accompanying notes which are an integral part of this quarterly report.

24 Russell U.S. Strategic Equity Fund

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)      
    Principal Fair       Principal   Fair  
  Amount ($) or Value   Amount ($) or   Value  
    Shares $       Shares   $  
Corning, Inc. 47,542 1,056 AES Corp.(Û)   252,839   3,123  
Cree, Inc.(Æ) 15,910 455 Ameren Corp.   8,986   471  
DST Systems, Inc. 2,692 332 American Electric Power Co., Inc.   89,327   6,190  
Electronic Arts, Inc.(Æ) 7,302 557 American Water Works Co., Inc.   40,700   3,361  
EMC Corp. 40,092 1,134 AT&T, Inc.   798,593   34,571  
F5 Networks, Inc.(Æ) 7,920 977 Calpine Corp.(Æ)   240,848   3,309  
Facebook, Inc. Class A(Æ) 287,005 35,571 CenterPoint Energy, Inc.   35,869   858  
Finisar Corp.(Æ) 20,023 376 China Mobile, Ltd. - ADR   101,204   6,284  
Flextronics International, Ltd.(Æ) 112,540 1,426 Consolidated Edison, Inc.   21,596   1,729  
Gartner, Inc.(Æ) 29,214 2,929 Dominion Resources, Inc.   7,234   564  
Groupon, Inc. Class A(Æ) 92,954 448 DTE Energy Co.   54,823   5,346  
Harris Corp. 56,636 4,906 Duke Energy Corp.   5,972   511  
Hewlett Packard Enterprise Co. 188,297 3,958 Edison International   11,160   864  
HP, Inc. 105,720 1,481 Entergy Corp.   274,096   22,309  
IAC/InterActiveCorp(Æ) 55,302 3,205 Eversource Energy   63,900   3,738  
Infinera Corp.(Æ) 43,900 385 Globalstar, Inc.(Æ)   202,000   228  
Ingram Micro, Inc. Class A(Æ) 10,593 363 Great Plains Energy, Inc.   4,134   123  
Intel Corp. 787,488 27,452 ITC Holdings Corp.   4,651   215  
International Business Machines Corp. 78,477 12,605 MDU Resources Group, Inc.   29,249   703  
Intuit, Inc. 29,612 3,287 NextEra Energy, Inc.   165,204   21,194  
IPG Photonics Corp.(Æ) 4,036 340 NiSource, Inc.   32,641   838  
Jabil Circuit, Inc. 14,110 287 NRG Energy, Inc.   86,697   1,200  
JDS Uniphase Corp.(Æ) 131,912 941 ONE Gas, Inc.   51,944   3,374  
Lam Research Corp. 49,938 4,483 PG&E Corp.   71,213   4,553  
Linear Technology Corp. 17,025 1,021 Pinnacle West Capital Corp.   9,617   759  
Manhattan Associates, Inc.(Æ) 7,487 435 PPL Corp.   190,524   7,185  
Marvell Technology Group, Ltd. 27,832 327 Public Service Enterprise Group, Inc.   90,400   4,159  
Mentor Graphics Corp. 119,580 2,554 SCANA Corp.   5,080   381  
Micron Technology, Inc.(Æ) 653,958 8,985 Southern Co. (The)   21,855   1,169  
Microsoft Corp.(Û) 977,155 55,385 Talen Energy Corp.(Æ)   14,282   194  
MicroStrategy, Inc. Class A(Æ) 8,720 1,525 Telephone & Data Systems, Inc.   22,666   714  
NCR Corp.(Æ) 10,693 353 Verizon Communications, Inc.(Û)   682,507   37,818  
NetApp, Inc. 14,475 381 WEC Energy Group, Inc.   12,542   814  
NVIDIA Corp. 12,791 730 Westar Energy, Inc. Class A   4,871   271  
NXP Semiconductors NV(Æ) 68,303 5,744 Xcel Energy, Inc.   18,862   830  
ON Semiconductor Corp.(Æ) 151,289 1,517           179,950  
Open Text Corp. 19,019 1,159              
Oracle Corp. 419,971 17,236 Total Common Stocks            
QUALCOMM, Inc. 268,639 16,811 (cost $2,535,440)         2,931,552  
Rackspace Hosting, Inc.(Æ) 137,218 3,215              
Red Hat, Inc.(Æ) 124,795 9,396 Short-Term Investments - 1.9%            
Sanmina Corp.(Æ) 14,203 360 Russell U.S. Cash Management Fund   50,763,099 (8) 50,763  
SBA Communications Corp. Class A(Æ) 75,018 8,627 United States Treasury Bills            
Symantec Corp.(Û) 212,826 4,348      0.303% due 08/11/16(§) 4,000   4,000  
Synopsys, Inc.(Æ) 127,657 6,914 Total Short-Term Investments            
Take-Two Interactive Software, Inc.(Æ) 75,052 3,016 (cost $54,763)         54,763  
Tech Data Corp.(Æ) 27,649 2,155              
Teradata Corp.(Æ) 12,734 361              
Teradyne, Inc. 77,808 1,537 Total Investments 100.9%            
Texas Instruments, Inc. 232,239 16,199 (identified cost $2,590,203)         2,986,315  
Verint Systems, Inc.(Æ) 31,400 1,107 Securities Sold Short - (1.3)%            
VeriSign, Inc.(Æ) 38,159 3,305 Consumer Discretionary - (0.3)%            
Vishay Intertechnology, Inc. 156,268 2,083 CarMax, Inc.(Æ)   (22,628 ) (1,318 )
VMware, Inc. Class A(Æ) 29,206 2,131 CST Brands, Inc.   (9,674 ) (432 )
Western Digital Corp. 112,289 5,335 Fitbit, Inc. Class A(Æ)   (86,336 ) (1,179 )
Xilinx, Inc. 5,303 271 JC Penney Co., Inc.(Æ)   (67,880 ) (656 )
Zynga, Inc. Class A(Æ) 299,330 859 Lions Gate Entertainment Corp.   (50,464 ) (1,009 )
      488,498 Mobileye NV(Æ)   (30,487 ) (1,461 )
        Monro Muffler Brake, Inc.   (7,887 ) (494 )
Utilities - 6.1%       Nord Anglia Education, Inc.(Æ)   (13,290 ) (289 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Strategic Equity Fund 25

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)      
      Principal   Fair  
    Amount ($) or   Value  
      Shares   $  
Pandora Media, Inc.(Æ)   (62,268 ) (847 )
Tesla Motors, Inc.(Æ)   (5,694 ) (1,337 )
Under Armour, Inc. Class A(Æ)   (15,157 ) (598 )
          (9,620 )
Consumer Staples - (0.1)%            
Diplomat Pharmacy, Inc.(Æ)   (5,965 ) (215 )
Snyders-Lance, Inc.   (33,867 ) (1,160 )
          (1,375 )
Energy – (0.0)%            
SunPower Corp. Class A(Æ)   (59,223 ) (863 )
 
Financial Services - (0.2)%            
Credit Acceptance Corp.(Æ)   (1,207 ) (218 )
First Financial Bankshares, Inc.   (35,196 ) (1,203 )
New York Community Bancorp, Inc.   (70,381 ) (1,017 )
TFS Financial Corp.   (66,827 ) (1,216 )
United Bankshares, Inc.   (28,736 ) (1,101 )
Weyerhaeuser Co.(ö)   (10,678 ) (349 )
Willis Towers Watson PLC   (7,206 ) (891 )
          (5,995 )
Health Care - (0.2)%            
Acadia Healthcare Co., Inc.(Æ)   (19,278 ) (1,089 )
Alnylam Pharmaceuticals, Inc.(Æ)   (20,868 ) (1,421 )
DexCom, Inc.(Æ)   (15,298 ) (1,411 )
OPKO Health, Inc.(Æ)   (125,694 ) (1,251 )
          (5,172 )
Producer Durables - (0.1)%            
Macquarie Infrastructure Corp.   (16,802 ) (1,288 )
Stericycle, Inc.(Æ)   (11,482 ) (1,037 )
XPO Logistics, Inc.(Æ)   (44,643 ) (1,322 )
          (3,647 )
Technology - (0.4)%            
Advanced Micro Devices, Inc.(Æ)   (186,466 ) (1,279 )
Ambarella, Inc.(Æ)   (6,337 ) (367 )
Arista Networks, Inc.(Æ)   (11,876 ) (846 )
Cavium, Inc.(Æ)   (18,924 ) (883 )
Inovalon Holdings, Inc. Class A(Æ)   (35,426 ) (660 )
MACOM Technology Solutions Holdings,        
Inc.(Æ)   (27,781 ) (1,098 )
NetScout Systems, Inc.(Æ)   (31,081 ) (870 )
Palo Alto Networks, Inc.(Æ)   (8,882 ) (1,162 )
Shopify, Inc. Class A(Æ)   (24,179 ) (829 )
Universal Display Corp.(Æ)   (9,710 ) (688 )
Zendesk, Inc.(Æ)   (50,066 ) (1,514 )
          (10,196 )
Utilities – (0.0)%            
Globalstar, Inc.(Æ)   (202,000 ) (410 )
 
 
Total Securities Sold Short            
(proceeds $35,834)         (37,278 )
 
Other Assets and Liabilities, Net        
- 0.4%       11,227  
Net Assets - 100.0%         2,960,264  

 

See accompanying notes which are an integral part of this quarterly report.

26 Russell U.S. Strategic Equity Fund

 

Russell Investment Company
Russell U.S. Strategic Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
NASDAQ 100 E-Mini Futures 97 USD 9,170 09/16 200  
S&P 500 E-Mini Index Futures 374 USD 40,545 09/16 291  
S&P Energy Select Sector Index Futures 105 USD 7,069 09/16 (117 )
S&P Financial Select Sector Index Futures 119 USD 7,015 09/16 13  
S&P Healthcare Select Sector Index Futures 93 USD 7,010 09/16 95  
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               482  

 

Presentation of Portfolio Holdings                      
 
Amounts in thousands                          
 
            Fair Value              
                  Practical      
Portfolio Summary   Level 1   Level 2 Level 3 Expedient (a)   Total  
Common Stocks                          
Consumer Discretionary   $ 441,384   $ — $ — $ — $ 441,384  
Consumer Staples     253,167     —   —   —   253,167  
Energy     182,032     —   —   —   182,032  
Financial Services     565,621     —   —   —   565,621  
Health Care     422,668     —   —   —   422,668  
Materials and Processing     83,630     —   —   —   83,630  
Producer Durables     314,602     —   —   —   314,602  
Technology     488,498     —   —   —   488,498  
Utilities     179,950     —   —   —   179,950  
Short-Term Investments   —   4,000 — 50,763 54,763  
Total Investments 2,931,552   4,000 — 50,763 2,986,315  
Securities Sold Short**   (37,278 ) — — — (37,278 )
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts   599   — — — 599  
 
Liabilities                          
Futures Contracts   (117 ) — — — (117 )
Total Other Financial Instruments*   $ 482   $ — $ — $ — $ 482  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
**    Refer to Schedule of Investments for detailed sector breakout.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Strategic Equity Fund 27

 

Russell Investment Company
Russell U.S. Large Cap Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 95.9%       Core-Mark Holding Co., Inc. 1,200 59
Consumer Discretionary - 13.0%       CVS Health Corp. 16,516 1,531
Amazon.com, Inc.(Æ) 6,663 5,056 Dr Pepper Snapple Group, Inc. 5,500 542
AutoZone, Inc.(Æ) 120 98 Energizer Holdings, Inc.(Æ) 1,600 135
Brinker International, Inc. 1,900 90 Flowers Foods, Inc. 7,000 129
Chipotle Mexican Grill, Inc. Class A(Æ) 3,328 1,411 Hershey Co. (The) 1,500 166
Coach, Inc. 14,571 628 Hormel Foods Corp. 19,069 712
Comcast Corp. Class A 75,692 5,090 JM Smucker Co. (The) 1,470 227
Costco Wholesale Corp. 4,010 671 Kellogg Co. 8,208 679
Dana Holding Corp. 52,900 722 Kimberly-Clark Corp. 2,200 285
Dollar General Corp. 383 36 Kraft Heinz Co. (The) 8,003 691
Dollar Tree, Inc.(Æ) 7,477 720 Kroger Co. (The) 16,976 580
Estee Lauder Cos., Inc. (The) Class A 2,300 214 Mondelez International, Inc. Class A 54,168 2,382
Ford Motor Co. 98,394 1,245 Monster Beverage Corp.(Æ) 315 51
General Motors Co. 31,769 1,002 PepsiCo, Inc. 31,200 3,399
Harman International Industries, Inc. 2,500 207 Philip Morris International, Inc. 4,350 436
Home Depot, Inc. (The) 16,860 2,331 Procter & Gamble Co. (The) 62,444 5,345
JC Penney Co., Inc.(Æ) 179,300 1,732 Reynolds American, Inc. 2,772 139
Johnson Controls, Inc. 38,030 1,746 Sanderson Farms, Inc. 300 26
Lennar Corp. Class A 35,100 1,643 Sysco Corp. 34,268 1,774
Lowe's Cos., Inc. 21,760 1,790 Walgreens Boots Alliance, Inc. 2,260 179
Macy's, Inc. 33,299 1,193 Whole Foods Market, Inc. 40,454 1,233
McDonald's Corp. 6,124 721       26,163
Michael Kors Holdings, Ltd.(Æ) 2,200 114        
Murphy USA, Inc.(Æ) 1,700 130 Energy - 7.8%      
Newell Brands, Inc. 14,900 782 Antero Resources Corp.(Æ) 10,100 265
News Corp. Class A 64,100 831 Baker Hughes, Inc. 32,700 1,564
Nike, Inc. Class B 49,388 2,740 Chesapeake Energy Corp.(Æ) 32,700 177
NVR, Inc.(Æ) 149 254 Chevron Corp. 52,201 5,350
Office Depot, Inc. 4,700 16 ConocoPhillips 7,100 290
Panera Bread Co. Class A(Æ) 3,054 670 Core Laboratories NV 7,759 906
Priceline Group, Inc. (The)(Æ) 993 1,341 CVR Energy, Inc. 3,300 49
Ross Stores, Inc. 9,580 592 Devon Energy Corp. 19,500 746
Royal Caribbean Cruises, Ltd. 10,777 781 Diamond Offshore Drilling, Inc.(Æ) 5,600 127
Six Flags Entertainment Corp. 4,100 231 EOG Resources, Inc. 29,763 2,431
Staples, Inc. 14,400 134 Exxon Mobil Corp. 58,299 5,187
Starbucks Corp. 42,738 2,482 First Solar, Inc.(Æ) 2,600 121
Target Corp. 12,266 924 FMC Technologies, Inc.(Æ) 7,400 188
Thor Industries, Inc. 1,300 100 Halliburton Co. 147 6
Time Warner, Inc. 1,049 80 HollyFrontier Corp. 1,600 41
Time, Inc. 7,300 119 Laredo Petroleum, Inc.(Æ) 9,100 91
TJX Cos., Inc. 20,537 1,679 Marathon Oil Corp. 59,200 807
Twenty-First Century Fox, Inc. Class A 20,437 544 Marathon Petroleum Corp. 3,000 118
Twenty-First Century Fox, Inc. Class B 825 22 Nabors Industries, Ltd. 59,814 538
Ulta Salon Cosmetics & Fragrance, Inc.(Æ) 7,775 2,031 Newfield Exploration Co.(Æ) 17,000 736
Under Armour, Inc. Class A(Æ) 11,666 460 Noble Energy, Inc. 9,500 339
VF Corp. 456 28 NOW, Inc.(Æ) 2,500 46
Visteon Corp.(Æ) 700 49 Occidental Petroleum Corp. 3,986 298
Wal-Mart Stores, Inc. 29,641 2,163 PBF Energy, Inc. Class A 1,700 38
Walt Disney Co. (The) 1,529 147 Phillips 66 1,508 115
Wynn Resorts, Ltd. 6,164 604 Pioneer Natural Resources Co. 6,929 1,126
      48,394 Royal Dutch Shell PLC Class B - ADR 31,800 1,724
        Schlumberger, Ltd. 49,817 4,012
Consumer Staples - 7.0%       Superior Energy Services, Inc.(Æ) 5,400 86
Altria Group, Inc. 17,723 1,200 Transocean, Ltd.(Æ) 41,400 455
Archer-Daniels-Midland Co. 20,661 931 Valero Energy Corp. 17,440 912
Coca-Cola Co. (The) 11,000 480 Whiting Petroleum Corp.(Æ) 7,600 56
Colgate-Palmolive Co. 20,220 1,505 World Fuel Services Corp. 2,100 100
ConAgra Foods, Inc. 11,700 547       29,045
Constellation Brands, Inc. Class A 4,855 800        

 

See accompanying notes which are an integral part of this quarterly report.

28 Russell U.S. Large Cap Equity Fund

 

Russell Investment Company
Russell U.S. Large Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Financial Services - 19.2%       Prologis, Inc.(ö) 693 38
Aflac, Inc. 4,759 344 Prudential Financial, Inc. 125 9
Alleghany Corp.(Æ) 400 217 Public Storage(ö) 979 234
Alliance Data Systems Corp.(Æ) 4,934 1,142 Reinsurance Group of America, Inc. Class A 2,300 228
Allied World Assurance Co. Holdings AG 3,300 135 Santander Consumer USA Holdings, Inc.(Æ) 26,300 289
Allstate Corp. (The) 34,537 2,360 Simon Property Group, Inc.(ö) 121 27
American Express Co. 3,104 200 State Street Corp. 33,060 2,175
American International Group, Inc. 5,762 314 SunTrust Banks, Inc. 14,100 596
American Tower Corp.(ö) 6,050 700 Synchrony Financial 42,789 1,193
Ameriprise Financial, Inc. 6,647 637 Travelers Cos., Inc. (The) 15,582 1,811
Aon PLC 10,053 1,077 US Bancorp 59,578 2,513
Aspen Insurance Holdings, Ltd. 3,700 170 Visa, Inc. Class A 53,394 4,167
Assurant, Inc. 3,000 249 Voya Financial, Inc. 33,800 866
AvalonBay Communities, Inc.(ö) 579 107 Wells Fargo & Co. 140,507 6,742
Axis Capital Holdings, Ltd. 1,600 89 Welltower, Inc.(ö) 465 37
Bank of America Corp. 2,000 29 Willis Towers Watson PLC 8,694 1,075
Bank of New York Mellon Corp. (The) 571 22 XL Group, Ltd. 7,600 263
BB&T Corp. 4,052 149 Zions Bancorporation 43,300 1,207
Berkshire Hathaway, Inc. Class B(Æ) 17,455 2,518       71,175
BlackRock, Inc. Class A 4,801 1,758        
Capital One Financial Corp. 2,000 134 Health Care - 14.2%      
CBL & Associates Properties, Inc.(ö) 7,600 93 Abbott Laboratories 9,299 416
CBOE Holdings, Inc. 1,540 106 AbbVie, Inc. 420 28
Chubb, Ltd. 20,237 2,536 Aetna, Inc. 466 54
Citigroup, Inc. 117,262 5,137 Agilent Technologies, Inc. 13,413 645
Citizens Financial Group, Inc. 37,800 844 Allergan PLC(Æ) 522 132
CME Group, Inc. Class A 931 95 AmerisourceBergen Corp. Class A 6,280 535
CNA Financial Corp. 2,890 92 Amgen, Inc. 15,136 2,603
Crown Castle International Corp.(ö) 8,668 841 Anthem, Inc. 19,371 2,544
Discover Financial Services 1,764 100 Baxter International, Inc. 12,208 586
E*Trade Financial Corp.(Æ) 5,000 125 Becton Dickinson and Co. 278 49
Endurance Specialty Holdings, Ltd. 3,300 223 Biogen, Inc.(Æ) 3,099 898
Equifax, Inc. 5,466 724 Bio-Rad Laboratories, Inc. Class A(Æ) 1,450 210
Equinix, Inc.(ö) 3,823 1,425 Boston Scientific Corp.(Æ) 26,200 636
Equity Residential(ö) 784 53 Bristol-Myers Squibb Co. 41,498 3,105
Everest Re Group, Ltd. 1,160 219 Bruker Corp. 4,000 100
FactSet Research Systems, Inc. 960 165 Cardinal Health, Inc. 18,733 1,566
Federal Realty Investment Trust(ö) 340 58 Centene Corp.(Æ) 3,300 233
Fidelity National Information Services, Inc. 9,196 731 Cerner Corp.(Æ) 25,886 1,615
FleetCor Technologies, Inc.(Æ) 17,339 2,630 Cigna Corp. 24,806 3,200
Franklin Resources, Inc. 807 29 CR Bard, Inc. 1,870 418
General Growth Properties, Inc.(ö) 866 28 DexCom, Inc.(Æ) 8,712 804
Global Payments, Inc. 3,600 269 Edwards Lifesciences Corp.(Æ) 17,100 1,958
Goldman Sachs Group, Inc. (The) 4,896 778 Eli Lilly & Co. 23,580 1,954
Hanover Insurance Group, Inc. (The) 2,200 181 Endo International PLC(Æ) 9,500 165
Hartford Financial Services Group, Inc. 50,030 1,994 Express Scripts Holding Co.(Æ) 903 69
HCP, Inc.(ö) 15,600 612 Gilead Sciences, Inc. 27,780 2,207
Intercontinental Exchange, Inc. 4,784 1,264 Humana, Inc. 197 34
Jones Lang LaSalle, Inc. 3,300 361 Intuitive Surgical, Inc.(Æ) 2,819 1,962
JPMorgan Chase & Co. 76,830 4,916 Johnson & Johnson 64,310 8,055
Lincoln National Corp. 6,500 284 McKesson Corp. 3,952 769
M&T Bank Corp. 3,740 428 Medtronic PLC 3,084 270
Marsh & McLennan Cos., Inc. 688 45 Merck & Co., Inc. 39,244 2,302
MasterCard, Inc. Class A 31,019 2,955 Molina Healthcare, Inc.(Æ) 1,100 62
MetLife, Inc. 31,831 1,360 Mylan NV(Æ) 9,300 435
Morgan Stanley 1,279 37 Patterson Cos., Inc. 4,800 237
Northern Trust Corp. 10,500 710 Pfizer, Inc. 128,597 4,744
PNC Financial Services Group, Inc. (The) 17,783 1,470 Quorum Health Corp.(Æ) 3,600 39
Principal Financial Group, Inc. 8,300 387 Regeneron Pharmaceuticals, Inc.(Æ) 3,422 1,455
Progressive Corp. (The) 32,272 1,049 ResMed, Inc. 4,300 296

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Large Cap Equity Fund 29

 

Russell Investment Company
Russell U.S. Large Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
St. Jude Medical, Inc. 265 22 ManpowerGroup, Inc. 3,900 271
Stryker Corp. 8,353 971 Norfolk Southern Corp. 398 36
Thermo Fisher Scientific, Inc. 6,791 1,079 Northrop Grumman Corp. 6,312 1,367
UnitedHealth Group, Inc. 20,882 2,991 Orbital ATK, Inc. 1,800 157
Veeva Systems, Inc. Class A(Æ) 1,100 42 Pentair PLC 16,400 1,047
Vertex Pharmaceuticals, Inc.(Æ) 268 26 Quanta Services, Inc.(Æ) 9,600 246
Zimmer Biomet Holdings, Inc. 224 29 Raytheon Co. 11,369 1,587
Zoetis, Inc. Class A 403 20 Roper Technologies, Inc. 620 106
      52,570 S&P Global, Inc. 5,633 688
        Southwest Airlines Co. 1,472 54
Materials and Processing - 3.2%       Terex Corp. 42,400 1,023
Acuity Brands, Inc. 906 238 Textron, Inc. 52,400 2,043
Air Products & Chemicals, Inc. 254 38 Trinity Industries, Inc. 11,700 272
Albemarle Corp. 2,900 244 Tyco International PLC 29,600 1,349
Allegheny Technologies, Inc. 35,200 627 Union Pacific Corp. 1,279 119
AptarGroup, Inc. 2,100 164 United Continental Holdings, Inc.(Æ) 495 23
Dow Chemical Co. (The) 45,446 2,439 United Parcel Service, Inc. Class B 648 70
Ecolab, Inc. 13,118 1,553 United Technologies Corp. 9,848 1,061
EI du Pont de Nemours & Co. 1,510 104 Waste Management, Inc. 2,747 182
International Flavors & Fragrances, Inc. 426 57 WESCO International, Inc.(Æ) 2,600 145
LyondellBasell Industries NV Class A 477 36 Zebra Technologies Corp. Class A(Æ) 3,900 207
Masco Corp. 26,995 985       33,660
Monsanto Co. 573 61        
Nucor Corp. 10,900 585 Technology - 17.2%      
PPG Industries, Inc. 23,454 2,456 Activision Blizzard, Inc. 30,143 1,211
Praxair, Inc. 483 56 Advanced Micro Devices, Inc.(Æ) 49,600 340
Sealed Air Corp. 34,400 1,623 Alphabet, Inc. Class A(Æ) 3,203 2,535
Sherwin-Williams Co. (The) 41 12 Alphabet, Inc. Class C(Æ) 6,514 5,009
Westlake Chemical Corp. 4,800 220 Anixter International, Inc.(Æ) 2,400 147
WestRock Co. 6,900 296 Apple, Inc. 60,552 6,310
      11,794 Applied Materials, Inc. 128,447 3,377
        Arista Networks, Inc.(Æ) 700 50
Producer Durables - 9.1%       Arrow Electronics, Inc.(Æ) 1,720 114
3M Co. 809 144 Avnet, Inc. 10,600 436
Accenture PLC Class A 8,427 951 Broadcom, Ltd. 5,556 900
American Airlines Group, Inc. 827 29 CA, Inc. 8,800 305
Automatic Data Processing, Inc. 14,535 1,293 Ciena Corp.(Æ) 1,400 27
Boeing Co. (The) 7,277 973 Cisco Systems, Inc. 135,402 4,133
Caterpillar, Inc. 6,702 555 Cognizant Technology Solutions Corp. Class      
CH Robinson Worldwide, Inc. 3,300 230      A(Æ) 802 46
Colfax Corp.(Æ) 4,200 123 Corning, Inc. 66,266 1,472
CSX Corp. 53,664 1,520 Cypress Semiconductor Corp. 86,100 1,002
Danaher Corp. 790 64 Electronic Arts, Inc.(Æ) 5,010 382
Deere & Co. 865 67 EMC Corp. 55,832 1,579
Delta Air Lines, Inc. 42,931 1,664 Facebook, Inc. Class A(Æ) 25,054 3,105
Eaton Corp. PLC 1,706 108 Finisar Corp.(Æ) 4,800 90
Emerson Electric Co. 1,952 109 Gartner, Inc.(Æ) 1,300 130
EnerSys 900 56 Hewlett Packard Enterprise Co. 23,823 501
Esterline Technologies Corp.(Æ) 900 55 HP, Inc. 25,708 360
Expeditors International of Washington, Inc. 11,800 583 Infinera Corp.(Æ) 2,100 18
FedEx Corp. 18,256 2,955 Intel Corp. 145,590 5,076
General Dynamics Corp. 2,862 420 International Business Machines Corp. 1,164 187
General Electric Co. 178,901 5,570 Jabil Circuit, Inc. 14,900 303
Honeywell International, Inc. 8,489 987 JDS Uniphase Corp.(Æ) 13,600 97
Huntington Ingalls Industries, Inc. 820 142 Juniper Networks, Inc. 14,600 331
Illinois Tool Works, Inc. 638 74 Lam Research Corp. 10,096 906
Insperity, Inc. 200 16 Leidos Holdings, Inc. 3,500 175
Kansas City Southern 7,881 757 Mentor Graphics Corp. 6,200 132
L-3 Communications Holdings, Inc. 5,600 849 Micron Technology, Inc.(Æ) 62,500 859
Lockheed Martin Corp. 5,194 1,313 Microsoft Corp. 114,823 6,509

 

See accompanying notes which are an integral part of this quarterly report.

30 Russell U.S. Large Cap Equity Fund

 

Russell Investment Company
Russell U.S. Large Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair Principal   Fair
  Amount ($) or   Value Amount ($) or   Value
    Shares   $ Shares   $
NetApp, Inc. 8,700   229 (cost $14,299)   14,299
Nuance Communications, Inc.(Æ) 6,100   98      
NVIDIA Corp. 10,700   611 Total Investments 99.8%    
NXP Semiconductors NV(Æ) 8,711   733 (identified cost $313,020)   370,503
ON Semiconductor Corp.(Æ) 11,900   119      
Oracle Corp. 89,433   3,672 Other Assets and Liabilities, Net    
QUALCOMM, Inc. 4,435   278 - 0.2% 901
Red Hat, Inc.(Æ) 21,399   1,611 Net Assets - 100.0%   371,404
Salesforce.com, Inc.(Æ) 19,400   1,587      
SAP SE - ADR 14,798   1,293      
Seagate Technology PLC 5,800   186      
Symantec Corp. 18,300   374      
Synopsys, Inc.(Æ) 5,800   314      
Tableau Software, Inc. Class A(Æ) 6,200   350      
TE Connectivity, Ltd. 507   31      
Texas Instruments, Inc. 10,460   729      
VeriFone Systems, Inc.(Æ) 24,800   475      
Verint Systems, Inc.(Æ) 4,800   169      
VMware, Inc. Class A(Æ) 12,000   876      
Western Digital Corp. 39,360   1,870      
Yahoo!, Inc.(Æ) 372   14      
Zynga, Inc. Class A(Æ) 49,600   142      
        63,915      
 
Utilities - 5.2%              
AES Corp. 101,500   1,254      
Ameren Corp. 4,900   257      
American Electric Power Co., Inc. 15,247   1,056      
American Water Works Co., Inc. 2,300   190      
AT&T, Inc. 115,385   4,997      
Consolidated Edison, Inc. 679   54      
Dominion Resources, Inc. 2,963   231      
DTE Energy Co. 2,000   195      
Duke Energy Corp. 4,020   344      
Edison International 8,158   631      
Entergy Corp. 4,000   326      
Eversource Energy 3,500   205      
Exelon Corp. 6,280   234      
FirstEnergy Corp. 8,600   300      
Hawaiian Electric Industries, Inc. 600   19      
NextEra Energy, Inc. 17,237   2,211      
NRG Energy, Inc. 5,900   82      
PG&E Corp. 9,210   588      
Pinnacle West Capital Corp. 3,200   252      
PPL Corp. 10,366   391      
Public Service Enterprise Group, Inc. 6,134   282      
Sempra Energy 892   100      
Southern Co. (The) 13,454   720      
T-Mobile US, Inc.(Æ) 6,200   287      
US Cellular Corp.(Æ) 700   28      
Verizon Communications, Inc. 75,603   4,189      
Xcel Energy, Inc. 1,482   65      
        19,488      
 
Total Common Stocks              
(cost $298,721)       356,204      
 
Short-Term Investments - 3.9%              
Russell U.S. Cash Management Fund 14,298,632 (8) 14,299      
Total Short-Term Investments              

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Large Cap Equity Fund 31

 

Russell Investment Company
Russell U.S. Large Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                
 
Amounts in thousands (except contract amounts)                
                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
S&P 500 E-Mini Index Futures 125 USD 13,552 09/16 460
S&P E-Mini Industrial Sector Index Futures 27 USD 1,564 09/16 33
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               493

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Consumer Discretionary $ 48,394 $ — $ — $ — $   48,394
Consumer Staples   26,163   —   —   —     26,163
Energy   29,045   —   —   —     29,045
Financial Services   71,175   —   —   —     71,175
Health Care   52,570   —   —   —     52,570
Materials and Processing   11,794   —   —   —     11,794
Producer Durables   33,660   —   —   —     33,660
Technology   63,915   —   —   —     63,915
Utilities   19,488   —   —   —     19,488
Short-Term Investments — — — 14,299   14,299
Total Investments 356,204 — — 14,299   370,503
 
 
Other Financial Instruments                      
Assets                      
Futures Contracts 493 — — —   493
 
Total Other Financial Instruments* $ 493 $ — $ — $ — $   493

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

32 Russell U.S. Large Cap Equity Fund

 

Russell Investment Company
Russell U.S. Mid Cap Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 92.2%       Tenneco, Inc.(Æ) 3,813 216
Consumer Discretionary - 12.5%       Time, Inc. 26,400 431
Aaron's, Inc. Class A 21,000 503 Toll Brothers, Inc.(Æ) 8,952 251
Advance Auto Parts, Inc. 2,145 364 Tractor Supply Co. 2,108 193
AutoZone, Inc.(Æ) 480 391 Tribune Media Co. Class A 6,800 252
Avis Budget Group, Inc.(Æ) 7,907 290 Ulta Salon Cosmetics & Fragrance, Inc.(Æ) 1,283 335
Brinker International, Inc. 4,600 217 Vail Resorts, Inc. 2,272 325
Carter's, Inc. 1,470 149 Wyndham Worldwide Corp. 1,013 72
Churchill Downs, Inc. 2,916 382       22,396
ClubCorp Holdings, Inc. 22,116 321        
Cooper Tire & Rubber Co. 1,800 59 Consumer Staples - 4.3%      
Darden Restaurants, Inc. 4,500 277 Brown-Forman Corp. Class B - ADR 975 96
Delphi Automotive PLC 4,766 323 Bunge, Ltd. 7,400 487
Dollar General Corp. 938 89 Campbell Soup Co. 8,353 520
Dollar Tree, Inc.(Æ) 2,409 232 Casey's General Stores, Inc. 1,950 261
DR Horton, Inc. 9,409 309 Church & Dwight Co., Inc. 2,853 280
Expedia, Inc. 5,767 673 Clorox Co. (The) 2,435 319
Fitbit, Inc. Class A(Æ)(Ñ) 1,400 19 ConAgra Foods, Inc. 607 28
Foot Locker, Inc. 3,012 180 Core-Mark Holding Co., Inc. 5,300 260
Gannett Co., Inc. 14,900 190 Dr Pepper Snapple Group, Inc. 7,979 786
Gentex Corp. 16,600 293 Energizer Holdings, Inc.(Æ) 3,200 271
Genuine Parts Co. 3,194 327 Flowers Foods, Inc. 11,100 204
Hanesbrands, Inc. 35,769 954 Hershey Co. (The) 5,562 616
Harley-Davidson, Inc. 160 8 Hormel Foods Corp. 11,540 431
Harman International Industries, Inc. 7,638 631 JM Smucker Co. (The) 2,430 375
Hasbro, Inc. 3,368 274 Kellogg Co. 51 4
International Game Technology PLC 1,700 36 McCormick & Co., Inc. 4,488 459
Interpublic Group of Cos., Inc. (The) 10,572 244 Mead Johnson Nutrition Co. Class A 3,603 321
Johnson Controls, Inc. 22,200 1,019 Pilgrim's Pride Corp.(Æ) 249 6
Lamar Advertising Co. Class A(ö) 1,293 88 Pinnacle Foods, Inc. 1,200 60
Lear Corp. 3,855 437 Post Holdings, Inc.(Æ) 270 23
Leggett & Platt, Inc. 4,794 252 Rite Aid Corp.(Æ) 35,940 252
Lennar Corp. Class A 5,710 267 Sanderson Farms, Inc.(Ñ) 5,700 499
Liberty Ventures Class A(Æ) 4,356 164 Spectrum Brands Holdings, Inc. 382 49
Live Nation Entertainment, Inc.(Æ) 10,600 291 Sysco Corp. 5,048 262
LKQ Corp.(Æ) 23,355 803 Tyson Foods, Inc. Class A 5,913 435
lululemon athletica, Inc.(Æ) 408 32 United Natural Foods, Inc.(Æ) 8,893 445
Marriott International, Inc. Class A(Ñ) 8,900 638       7,749
MGM Resorts International(Æ) 18,700 448        
Michael Kors Holdings, Ltd.(Æ) 954 49 Energy - 6.7%      
Mobileye NV(Æ)(Ñ) 6,854 328 Anadarko Petroleum Corp. 13,500 736
Mohawk Industries, Inc.(Æ) 1,533 320 Antero Resources Corp.(Æ) 14,900 390
Murphy USA, Inc.(Æ) 5,200 399 Baker Hughes, Inc. 23,794 1,138
Newell Brands, Inc. 7,471 392 Cabot Oil & Gas Corp. 20,700 511
NVR, Inc.(Æ) 338 576 Chesapeake Energy Corp.(Æ) 34,000 184
Omnicom Group, Inc. 7,184 591 Concho Resources, Inc.(Æ) 1,397 174
O'Reilly Automotive, Inc.(Æ) 3,044 885 CVR Energy, Inc.(Ñ) 7,300 108
Pandora Media, Inc.(Æ)(Ñ) 14,305 195 Energen Corp.(Æ) 7,000 332
Party City Holdco, Inc.(Æ)(Ñ) 19,942 319 Ensco PLC Class A 30,900 283
Polaris Industries, Inc.(Ñ) 253 25 First Solar, Inc.(Æ) 3,400 159
PVH Corp. 3,577 362 Helmerich & Payne, Inc.(Ñ) 408 25
Ralph Lauren Corp. Class A 9,700 952 Laredo Petroleum, Inc.(Æ)(Ñ) 10,600 106
Ross Stores, Inc. 13,004 804 Marathon Oil Corp. 30,800 420
Scripps Networks Interactive, Inc. Class A 4,196 277 Marathon Petroleum Corp. 20,700 815
Service Corp. International 970 27 Nabors Industries, Ltd. 28,200 254
ServiceMaster Global Holdings, Inc.(Æ) 4,712 178 National Oilwell Varco, Inc. 7,900 256
Signet Jewelers, Ltd. 3,803 334 NextEra Energy Partners, LP 29,500 921
Sirius XM Holdings, Inc.(Æ)(Ñ) 207,502 911 Noble Energy, Inc. 30,300 1,082
Six Flags Entertainment Corp. 3,791 214 ONEOK, Inc. 880 39
Starwood Hotels & Resorts Worldwide, Inc. 115 9 Parsley Energy, Inc. Class A(Æ) 635 18

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Mid Cap Equity Fund 33

 

Russell Investment Company
Russell U.S. Mid Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Patterson-UTI Energy, Inc. 27,100 526 Equifax, Inc. 3,429 454
Pioneer Natural Resources Co. 10,300 1,675 Equinix, Inc.(ö) 1,241 463
QEP Resources, Inc.(Æ) 11,600 211 Equity Commonwealth(Æ)(ö) 7,200 216
Range Resources Corp. 6,054 244 Equity LifeStyle Properties, Inc. Class A(ö) 1,162 96
Superior Energy Services, Inc.(Æ) 14,300 228 Equity One, Inc.(ö) 2,405 80
Tesoro Corp. 628 48 Essex Property Trust, Inc.(ö) 566 132
Transocean, Ltd.(Æ) 25,200 277 Everest Re Group, Ltd. 4,450 841
Weatherford International PLC(Æ) 66,200 376 Extra Space Storage, Inc.(ö) 1,197 103
Whiting Petroleum Corp.(Æ) 8,800 65 FactSet Research Systems, Inc. 1,670 287
World Fuel Services Corp. 6,800 324 Federal Realty Investment Trust(ö) 687 117
      11,925 First American Financial Corp. 1,000 42
        Fiserv, Inc.(Æ) 4,020 444
Financial Services - 25.1%       Forest City Realty Trust, Inc. Class A(ö) 3,696 87
Alleghany Corp.(Æ) 100 54 General Growth Properties, Inc.(ö) 2,423 77
Alliance Data Systems Corp.(Æ) 2,226 516 Genworth Financial, Inc. Class A(Æ) 111,000 317
Allied World Assurance Co. Holdings AG 8,540 350 Global Payments, Inc. 2,716 203
Allstate Corp. (The) 15,700 1,073 Hanover Insurance Group, Inc. (The) 6,800 560
American Campus Communities, Inc.(ö) 17,032 921 Hartford Financial Services Group, Inc. 42,100 1,678
American Homes 4 Rent Class A(ö) 4,089 89 Healthcare Trust of America, Inc. Class A(ö) 2,517 86
Ameriprise Financial, Inc. 7,900 757 Highwoods Properties, Inc.(ö) 1,643 92
AmTrust Financial Services, Inc. 16,460 393 Host Hotels & Resorts, Inc.(ö) 7,067 125
Annaly Capital Management, Inc.(ö) 8,693 95 Iron Mountain, Inc.(ö) 2,739 113
Apartment Investment & Management Co.       Jack Henry & Associates, Inc. 154 14
    Class A(ö) 2,152 99 KeyCorp 66,400 777
Arch Capital Group, Ltd.(Æ) 4,300 312 Kilroy Realty Corp.(ö) 1,366 100
Aspen Insurance Holdings, Ltd. 8,500 391 Kimco Realty Corp.(ö) 3,787 122
Assurant, Inc. 3,900 324 Lazard, Ltd. Class A 47,735 1,706
Assured Guaranty, Ltd. 1,400 38 Liberty Property Trust(ö) 2,198 91
AvalonBay Communities, Inc.(ö) 6,347 1,178 M&T Bank Corp. 3,680 422
Axis Capital Holdings, Ltd. 5,800 322 Macerich Co. (The)(ö) 1,381 123
BankUnited, Inc. 25,400 763 Markel Corp.(Æ) 760 721
BB&T Corp. 19,907 734 MarketAxess Holdings, Inc. 794 128
Blackhawk Network Holdings, Inc. Class       MB Financial, Inc. 19,800 760
     A(Æ) 13,121 456 Mid-America Apartment Communities, Inc.      
Boston Properties, Inc.(ö) 5,517 784      (ö) 940 100
Brixmor Property Group, Inc.(ö) 3,167 90 Morningstar, Inc. 900 76
Brown & Brown, Inc. 4,900 180 National Retail Properties, Inc.(ö) 1,877 100
Camden Property Trust(ö) 1,116 100 Northern Trust Corp. 9,800 662
Care Capital Properties, Inc.(ö) 8,900 263 Omega Healthcare Investors, Inc.(Ñ)(ö) 2,627 91
CBOE Holdings, Inc. 4,040 278 PacWest Bancorp 9,200 380
CBRE Group, Inc. Class A(Æ) 4,884 139 Paramount Group, Inc.(ö) 19,400 342
Citizens Financial Group, Inc. 64,200 1,434 Parkway Properties, Inc.(ö) 22,200 386
CNA Financial Corp. 6,400 204 Post Properties, Inc.(ö) 5,000 318
Comerica, Inc. 9,900 448 Principal Financial Group, Inc. 9,400 438
Corporate Office Properties Trust(ö) 11,100 333 Progressive Corp. (The) 26,800 871
Corrections Corp. of America(ö) 2,271 73 Prologis, Inc.(ö) 3,422 186
Crown Castle International Corp.(ö) 650 63 Raymond James Financial, Inc. 9,204 505
CubeSmart(ö) 2,813 84 Realty Income Corp.(ö) 2,036 146
CyrusOne, Inc.(ö) 1,482 81 Regency Centers Corp.(ö) 8,773 745
DCT Industrial Trust, Inc.(ö) 1,717 86 Reinsurance Group of America, Inc. Class A 4,800 476
DDR Corp.(ö) 4,830 95 RenaissanceRe Holdings, Ltd. 3,350 394
Digital Realty Trust, Inc.(ö) 2,956 309 Santander Consumer USA Holdings, Inc.(Æ) 26,700 293
Douglas Emmett, Inc.(ö) 11,700 445 Senior Housing Properties Trust(ö) 4,211 94
Duke Realty Corp.(ö) 3,929 113 Signature Bank(Æ) 4,861 584
Dun & Bradstreet Corp. (The) 2,970 384 SL Green Realty Corp.(ö) 4,500 530
E*Trade Financial Corp.(Æ) 12,800 321 Sovran Self Storage, Inc.(Æ)(ö) 792 81
East West Bancorp, Inc. 10,300 352 Spirit Realty Capital, Inc.(ö) 7,180 98
Eaton Vance Corp. 461 17 Starwood Property Trust, Inc.(ö) 3,889 85
Endurance Specialty Holdings, Ltd. 6,800 460 STORE Capital Corp.(ö) 10,126 316
EPR Properties(ö) 1,087 91 Sun Communities, Inc.(ö) 1,142 90

 

See accompanying notes which are an integral part of this quarterly report.

34 Russell U.S. Mid Cap Equity Fund

 

Russell Investment Company
Russell U.S. Mid Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Synchrony Financial 13,600 379 Quorum Health Corp.(Æ) 8,075 88
Taubman Centers, Inc.(ö) 1,511 122 ResMed, Inc. 3,034 209
TCF Financial Corp. 24,921 339 Steris PLC 10,900 773
UDR, Inc.(ö) 2,927 109 United Therapeutics Corp.(Æ) 734 89
Unum Group 6,300 210 Varian Medical Systems, Inc.(Æ) 541 51
Validus Holdings, Ltd. 2,500 124 VCA, Inc.(Æ) 327 23
Vantiv, Inc. Class A(Æ) 5,545 304 Veeva Systems, Inc. Class A(Æ) 4,800 182
Ventas, Inc.(ö) 2,314 176 Vertex Pharmaceuticals, Inc.(Æ) 4,731 459
VEREIT, Inc.(ö) 10,050 111 WellCare Health Plans, Inc.(Æ) 1,840 197
Voya Financial, Inc. 23,700 607 Wright Medical Group NV(Æ) 19,215 421
Waddell & Reed Financial, Inc. Class A 2,700 49 Zimmer Biomet Holdings, Inc. 715 94
Webster Financial Corp. 6,633 239       13,822
Weingarten Realty Investors(ö) 10,069 435        
Welltower, Inc.(ö) 2,351 187 Materials and Processing - 5.3%      
Western Alliance Bancorp(Æ) 2,100 71 Acuity Brands, Inc. 121 32
WEX, Inc.(Æ) 2,480 232 Alcoa, Inc. 3,518 37
Weyerhaeuser Co.(ö) 16,102 527 AptarGroup, Inc. 9,462 740
White Mountains Insurance Group, Ltd. 650 534 Ashland, Inc. 4,922 557
Willis Towers Watson PLC 11,946 1,477 Beacon Roofing Supply, Inc.(Æ) 5,745 270
WP Carey, Inc.(ö) 1,340 97 Bemis Co., Inc. 4,000 204
XL Group, Ltd. 42,200 1,461 Cabot Corp. 900 44
Zions Bancorporation 39,500 1,101 Caesarstone Sdot-Yam, Ltd.(Æ)(Ñ) 7,739 290
      44,947 Celanese Corp. Class A 4,700 298
        Crown Holdings, Inc.(Æ) 3,710 197
Health Care - 7.7%       Domtar Corp. 12,300 484
Abiomed, Inc.(Æ) 167 20 Eagle Materials, Inc. 6,600 554
Agilent Technologies, Inc. 14,900 717 Eastman Chemical Co. 422 28
Align Technology, Inc.(Æ) 333 30 Fastenal Co.(Ñ) 5,792 248
Allscripts Healthcare Solutions, Inc.(Æ) 14,700 208 Hexcel Corp. 4,963 214
AmerisourceBergen Corp. Class A 4,105 350 Ingersoll-Rand PLC 5,800 384
Amsurg Corp. Class A(Æ) 183 14 Ingevity Corp.(Æ) 843 32
BioMarin Pharmaceutical, Inc.(Æ) 3,449 343 International Flavors & Fragrances, Inc. 2,267 302
Bio-Rad Laboratories, Inc. Class A(Æ) 500 73 ITT, Inc. 5,500 175
Bruker Corp. 1,039 26 Martin Marietta Materials, Inc. 1,433 290
Centene Corp.(Æ) 4,061 286 Masco Corp. 9,360 342
Cigna Corp. 16,100 2,076 Masonite International Corp.(Æ) 3,004 210
Community Health Systems, Inc.(Æ) 17,500 223 Mosaic Co. (The) 440 12
CR Bard, Inc. 1,642 367 Newmont Mining Corp. 4,984 219
DaVita HealthCare Partners, Inc.(Æ) 972 75 Nucor Corp. 6,270 336
Dentsply Sirona, Inc. 9,223 591 Owens Corning 4,244 225
Edwards Lifesciences Corp.(Æ) 3,343 383 Platform Specialty Products Corp.(Æ) 5,900 54
Endo International PLC(Æ) 13,052 227 PPG Industries, Inc. 6,200 649
Envision Healthcare Holdings, Inc.(Æ) 12,483 307 Reliance Steel & Aluminum Co. 3,503 275
Exact Sciences Corp.(Æ)(Ñ) 11,173 194 Royal Gold, Inc. 75 6
Henry Schein, Inc.(Æ) 1,345 243 RPM International, Inc. 1,366 74
Humana, Inc. 6,100 1,053 Sherwin-Williams Co. (The) 2,100 630
IDEXX Laboratories, Inc.(Æ) 1,756 165 Sonoco Products Co. 1,099 56
Incyte Corp.(Æ) 1,445 130 USG Corp.(Æ) 366 10
Intrexon Corp.(Æ) 1,300 33 Vulcan Materials Co. 2,713 336
Intuitive Surgical, Inc.(Æ) 790 550 Watsco, Inc. 1,660 239
Laboratory Corp. of America Holdings(Æ) 1,184 165 Westlake Chemical Corp. 5,459 250
Medicines Co. (The)(Æ)(Ñ) 7,674 300 WestRock Co. 5,205 223
Medivation, Inc.(Æ) 1,383 88       9,526
NuVasive, Inc.(Æ) 3,654 227        
OPKO Health, Inc.(Æ)(Ñ) 1,352 13 Producer Durables - 12.5%      
Pacira Pharmaceuticals, Inc.(Æ)(Ñ) 8,419 305 Air Lease Corp. Class A 8,100 233
Patterson Cos., Inc. 4,800 237 Alaska Air Group, Inc. 9,200 618
PerkinElmer, Inc. 5,815 331 Allison Transmission Holdings, Inc. Class A 24,642 710
Perrigo Co. PLC 4,000 366 American Airlines Group, Inc. 9,945 353
Quintiles Transnational Holdings, Inc.(Æ) 6,700 520 AO Smith Corp. 4,949 460

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Mid Cap Equity Fund 35

 

Russell Investment Company
Russell U.S. Mid Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Avery Dennison Corp. 625 49 Analog Devices, Inc. 8,100 517
B/E Aerospace, Inc. 5,207 249 Applied Materials, Inc. 33,800 889
BWX Technologies, Inc. 5,600 206 ARRIS International PLC(Æ) 14,790 403
Carlisle Cos., Inc. 2,732 282 Arrow Electronics, Inc.(Æ) 3,600 239
CH Robinson Worldwide, Inc. 9,707 676 Avnet, Inc. 14,700 604
Chicago Bridge & Iron Co. 8,900 301 Black Knight Financial Services, Inc. Class      
Colfax Corp.(Æ) 1,200 35      A(Æ)(Ñ) 7,813 304
CoStar Group, Inc.(Æ) 2,182 454 Cadence Design Systems, Inc.(Æ) 13,060 314
CSX Corp. 17,300 490 Coherent, Inc.(Æ) 1,486 158
Delta Air Lines, Inc. 19,000 736 Commercehub, Inc.(Æ) 1,307 18
Donaldson Co., Inc. 7,300 264 Cypress Semiconductor Corp.(Ñ) 108,200 1,259
Dycom Industries, Inc.(Æ) 3,590 338 Dolby Laboratories, Inc. Class A 4,600 231
EnerSys 1,700 106 Electronic Arts, Inc.(Æ) 1,221 93
Expeditors International of Washington, Inc. 13,232 654 F5 Networks, Inc.(Æ) 1,571 194
Fortive Corp. 11,600 559 Finisar Corp.(Æ) 6,500 122
Genpact, Ltd.(Æ) 17,441 467 Fleetmatics Group PLC(Æ)(Ñ) 4,996 215
Graco, Inc. 232 17 Gartner, Inc.(Æ) 2,323 233
Hubbell, Inc. Class B 4,950 534 GoDaddy, Inc. Class A(Æ)(Ñ) 9,151 274
Huntington Ingalls Industries, Inc. 200 35 Groupon, Inc. Class A(Æ)(Ñ) 37,511 181
IDEX Corp. 2,422 217 Harris Corp. 13,300 1,152
JB Hunt Transport Services, Inc. 6,716 558 Hewlett Packard Enterprise Co. 29,700 624
KBR, Inc. 27,500 386 IMS Health Holdings, Inc.(Æ) 10,082 303
Korn/Ferry International 15,575 358 Infinera Corp.(Æ) 27,335 239
L-3 Communications Holdings, Inc. Class 3 4,210 638 InterXion Holding NV(Æ) 14,394 545
Landstar System, Inc. 3,400 240 Jabil Circuit, Inc. 16,900 344
Lincoln Electric Holdings, Inc. 3,300 205 JDS Uniphase Corp.(Æ) 84,800 605
Macquarie Infrastructure Corp. 8,800 675 Juniper Networks, Inc. 18,100 411
ManpowerGroup, Inc. 9,100 632 KLA-Tencor Corp. 8,891 673
MAXIMUS, Inc. 7,761 457 Leidos Holdings, Inc.(Ñ) 6,000 300
Mettler-Toledo International, Inc.(Æ) 769 316 Linear Technology Corp. 6,248 375
Mobile Mini, Inc. 4,062 132 LogMeIn, Inc.(Æ) 2,457 211
Moog, Inc. Class A(Æ) 2,200 121 Manhattan Associates, Inc.(Æ) 301 17
On Assignment, Inc.(Æ) 10,163 376 Marvell Technology Group, Ltd. 35,700 420
Orbital ATK, Inc. 12,600 1,098 Mentor Graphics Corp. 22,360 478
Oshkosh Corp. 6,200 342 Motorola Solutions, Inc. 264 18
Paychex, Inc. 13,422 796 NetApp, Inc. 33,100 872
Pentair PLC 10,000 638 Nuance Communications, Inc.(Æ) 10,400 167
Quanta Services, Inc.(Æ) 7,500 192 NVIDIA Corp. 2,143 122
Regal Beloit Corp. 1,200 73 Proofpoint, Inc.(Æ)(Ñ) 1,861 141
Rockwell Automation, Inc. 2,200 252 Qlik Technologies, Inc.(Æ) 2,214 67
Roper Technologies, Inc. 2,390 407 Sabre Corp. 871 25
Ryder System, Inc. 4,953 326 Sanmina Corp.(Æ) 2,200 56
Snap-on, Inc. 2,635 414 SBA Communications Corp. Class A(Æ) 7,900 909
Stanley Black & Decker, Inc. 2,834 345 Skyworks Solutions, Inc. 7,406 489
Terex Corp. 12,400 299 Symantec Corp. 15,200 311
Textron, Inc. 21,600 842 Synchronoss Technologies, Inc.(Æ) 26,728 998
Toro Co. (The) 2,596 239 Synopsys, Inc.(Æ) 6,900 374
Trimble Navigation, Ltd.(Æ) 10,501 278 VeriFone Systems, Inc.(Æ) 7,500 144
Trinity Industries, Inc. 18,100 420 Western Digital Corp. 13,550 644
Triumph Group, Inc. 4,100 126 Zynga, Inc. Class A(Æ) 122,800 352
Verisk Analytics, Inc. Class A(Æ) 3,804 324       19,394
WageWorks, Inc.(Æ) 9,347 578        
WW Grainger, Inc.(Ñ) 711 156 Utilities - 7.3%      
Zebra Technologies Corp. Class A(Æ) 3,800 201 Ameren Corp. 16,800 881
      22,483 American Water Works Co., Inc. 8,900 735
        Aqua America, Inc. 7,800 270
Technology - 10.8%       Atmos Energy Corp. 2,100 168
Advanced Micro Devices, Inc.(Æ) 70,000 480 CMS Energy Corp. 7,700 348
Amdocs, Ltd. 3,500 204 Consolidated Edison, Inc. 11,700 937
Amkor Technology, Inc.(Æ) 12,100 76 DTE Energy Co. 4,000 390

 

See accompanying notes which are an integral part of this quarterly report.

36 Russell U.S. Mid Cap Equity Fund

 

Russell Investment Company
Russell U.S. Mid Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

  Amounts in thousands (except share amounts)      
        Principal   Fair  
      Amount ($) or   Value  
        Shares   $  
  Edison International   9,200   712  
  Entergy Corp.   500   41  
  Exelon Corp.   15,600   582  
  FirstEnergy Corp.   13,100   457  
  Gogo, Inc.(Æ)(Ñ)   48,848   411  
  Hawaiian Electric Industries, Inc.   17,200   534  
  Level 3 Communications, Inc.(Æ)   3,224   163  
  Northwest Natural Gas Co.   7,000   455  
  PG&E Corp.   16,000   1,023  
  Pinnacle West Capital Corp.   6,900   544  
  Public Service Enterprise Group, Inc.   18,500   851  
  Sempra Energy   12,800   1,432  
  Telephone & Data Systems, Inc.   10,989   346  
  US Cellular Corp.(Æ)   3,600   146  
  Vectren Corp.   1,800   93  
  WEC Energy Group, Inc.   5,600   363  
  Xcel Energy, Inc.   23,900   1,051  
  Zayo Group Holdings, Inc.(Æ)   7,205   204  
            13,137  
 
  Total Common Stocks            
  (cost $152,672)         165,379  
 
Short-Term Investments - 7.3%            
  Russell U.S. Cash Management Fund   13,071,847 (8) 13,072  
  Total Short-Term Investments            
  (cost $13,072)         13,072  
 
  Other Securities - 4.0%            
  Russell U.S. Cash Collateral Fund(×)   7,216,237 (8) 7,216  
  Total Other Securities            
  (cost $7,216)         7,216  
 
  Total Investments 103.5%            
  (identified cost $172,960)         185,667  
 
  Other Assets and Liabilities, Net            
-(3.5%)       (6,319 )
  Net Assets - 100.0%         179,348  
             

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Mid Cap Equity Fund 37

 

Russell Investment Company
Russell U.S. Mid Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                
 
Amounts in thousands (except contract amounts)                
                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
S&P Mid 400 E-Mini Index Futures 86 USD 13,389 09/16 355
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               355

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Consumer Discretionary $ 22,396 $ — $ — $ — $   22,396
Consumer Staples   7,749   —   —   —     7,749
Energy   11,925   —   —   —     11,925
Financial Services   44,947   —   —   —     44,947
Health Care   13,822   —   —   —     13,822
Materials and Processing   9,526   —   —   —     9,526
Producer Durables   22,483   —   —   —     22,483
Technology   19,394   —   —   —     19,394
Utilities   13,137   —   —   —     13,137
Short-Term Investments — — — 13,072   13,072
Other Securities — — — 7,216   7,216
Total Investments 165,379 — — 20,288   185,667
 
 
Other Financial Instruments                      
Assets                      
Futures Contracts 355 — — —   355
 
Total Other Financial Instruments* $ 355 $ — $ — $ — $   355

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

38 Russell U.S. Mid Cap Equity Fund

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 96.7%       FTD Cos., Inc.(Æ) 127,080 3,216
Consumer Discretionary - 13.2%       Full House Resorts, Inc.(Æ) 566,085 1,013
A H Belo Corp. Class A 135,754 702 Gannett Co., Inc. 51,928 663
Aaron's, Inc. Class A 51,900 1,243 Genesco, Inc.(Æ) 100 7
Abercrombie & Fitch Co. Class A 47,100 975 Golden Entertainment, Inc.(Æ) 55,452 755
AMC Entertainment Holdings, Inc. Class A 34,962 1,029 Grand Canyon Education, Inc.(Æ) 4,966 209
American Woodmark Corp.(Æ) 10,152 754 Gray Television, Inc.(Æ) 202,420 2,004
Bassett Furniture Industries, Inc. 5,571 144 Group 1 Automotive, Inc. 3,700 231
Beazer Homes USA, Inc.(Æ) 68,515 657 Guess?, Inc. 7,055 104
Belmond, Ltd. Class A(Æ) 80,128 921 Harte-Hanks, Inc.(Æ) 61,079 101
Big 5 Sporting Goods Corp. 17,600 186 Hemisphere Media Group, Inc. Class A(Æ) 24,355 309
Biglari Holdings, Inc.(Æ) 1,039 431 hhgregg, Inc.(Æ) 11,500 24
Black Diamond, Inc.(Æ) 48,800 205 Horizon Global Corp.(Æ) 322,431 4,208
Bloomin' Brands, Inc. 165,351 2,973 HSN, Inc. 75,976 3,887
Blue Nile, Inc.(Æ) 28,002 814 IMAX Corp.(Æ) 15,407 487
BMC Stock Holdings, Inc.(Æ) 39,094 796 Isle of Capri Casinos, Inc.(Æ) 80,300 1,504
Boyd Gaming Corp.(Æ) 19,213 377 J Alexander's Holdings, Inc.(Æ) 229,573 2,197
Bravo Brio Restaurant Group, Inc.(Æ) 46,773 384 Jack in the Box, Inc. 83,119 7,347
Bridgepoint Education, Inc.(Æ) 10,600 76 JAKKS Pacific, Inc.(Æ) 74,260 685
Brinker International, Inc. 63,888 3,012 Jamba, Inc.(Æ) 28,696 310
Build-A-Bear Workshop, Inc. Class A(Æ) 30,516 416 K12, Inc.(Æ) 50,176 621
Burlington Stores, Inc.(Æ) 7,851 601 KAR Auction Services, Inc. 46,590 1,993
Caleres, Inc. 32,851 865 Kirkland's, Inc.(Æ) 44,763 682
Callaway Golf Co. 70,200 751 Lee Enterprises, Inc.(Æ) 667,707 1,229
Capella Education Co. 4,250 254 LGI Homes, Inc.(Æ) 78,962 2,711
Care.com, Inc.(Æ) 53,156 584 Libbey, Inc. 163,900 3,063
Career Education Corp.(Æ) 17,600 122 Liberty Ventures Class A(Æ) 147,409 5,559
Carrols Restaurant Group, Inc.(Æ) 11,812 143 Lifetime Brands, Inc. 22,300 299
Central Garden & Pet Co.(Æ) 26,631 646 Lindblad Expeditions Holdings, Inc.(Æ) 101,940 1,013
Century Communities, Inc.(Æ) 131,398 2,326 Lithia Motors, Inc. Class A 43,908 3,789
Cheesecake Factory, Inc. (The) 23,800 1,231 Lumber Liquidators Holdings, Inc.(Æ) 62,300 936
Cherokee, Inc.(Æ) 95,517 997 Malibu Boats, Inc. Class A(Æ) 69,059 942
Chico's FAS, Inc. 344,464 4,137 Marchex, Inc. Class B(Æ) 69,833 221
Children's Place, Inc. (The) 27,502 2,299 MarineMax, Inc.(Æ) 33,679 680
Chuy's Holdings, Inc.(Æ) 41,265 1,391 Matthews International Corp. Class A 29,600 1,779
Citi Trends, Inc. 88,018 1,468 MCBC Holdings, Inc.(Æ) 31,307 359
ClubCorp Holdings, Inc. 276,239 4,005 MDC Partners, Inc. Class A 642,294 8,196
Container Store Group, Inc. (The)(Æ) 32,400 179 Meredith Corp. 51,161 2,787
Cooper Tire & Rubber Co. 79,756 2,631 Monarch Casino & Resort, Inc.(Æ) 16,141 377
Cooper-Standard Holding, Inc.(Æ) 26,847 2,364 Monro Muffler Brake, Inc. 42,913 2,687
Crocs, Inc.(Æ) 53,200 603 Motorcar Parts of America, Inc.(Æ) 47,026 1,318
Dave & Buster's Entertainment, Inc.(Æ) 10,932 486 Movado Group, Inc. 47,993 1,084
Del Frisco's Restaurant Group, Inc.(Æ) 139,351 2,079 National CineMedia, Inc. 48,380 754
Del Taco Restaurants, Inc.(Æ) 263,192 2,766 Nautilus, Inc.(Æ) 91,191 1,718
Delta Apparel, Inc.(Æ) 55,637 1,329 Nexstar Broadcasting Group, Inc. Class A 32,444 1,640
Denny's Corp.(Æ) 123,700 1,380 Nutrisystem, Inc. 35,161 1,040
Destination XL Group, Inc.(Æ) 59,300 306 Ollie's Bargain Outlet Holdings, Inc.(Æ) 25,282 661
DeVry Education Group, Inc. 140,311 3,125 Outfront Media, Inc.(ö) 148,435 3,454
Duluth Holdings, Inc. Class B(Æ) 30,163 748 Oxford Industries, Inc. 58,018 3,317
Eldorado Resorts, Inc.(Æ) 170,501 2,464 Papa John's International, Inc. 35,817 2,649
Entercom Communications Corp. Class A 28,566 417 PCM, Inc.(Æ) 1,300 22
Entravision Communications Corp. Class A 92,835 674 Peak Resorts, Inc. 171,713 838
Ethan Allen Interiors, Inc. 15,151 526 Penn National Gaming, Inc.(Æ) 72,098 1,083
EW Scripps Co. (The) Class A(Æ) 207,491 3,519 Performance Sports Group, Ltd.(Æ) 369,600 1,231
Express, Inc.(Æ) 11,825 177 Perry Ellis International, Inc.(Æ) 14,602 313
Famous Dave's of America, Inc.(Æ) 5,585 32 Pinnacle Entertainment, Inc.(Æ) 86,389 943
Fiesta Restaurant Group, Inc.(Æ) 247,353 5,526 Pool Corp. 69,341 7,092
Finish Line, Inc. (The) Class A 222,584 4,837 QuinStreet, Inc.(Æ) 50,200 182
Five Below, Inc.(Æ) 31,461 1,605 Quotient Technology, Inc.(Æ) 51,254 649
Flexsteel Industries, Inc. 3,813 157 Radio One, Inc. Class D(Æ) 419,780 1,343

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Small Cap Equity Fund 39

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Red Lion Hotels Corp.(Æ) 59,183 470 Farmer Brothers Co.(Æ) 32,086 984
Red Rock Resorts, Inc. Class A 48,574 1,118 Flowers Foods, Inc. 206,281 3,793
Rent-A-Center, Inc. Class A 35,800 387 Fresh Del Monte Produce, Inc. 6,536 372
Rocky Brands, Inc. 9,910 109 Freshpet, Inc.(Æ) 91,600 801
Rosetta Stone, Inc.(Æ) 20,027 154 Inventure Foods, Inc.(Æ) 193,110 1,665
Ruby Tuesday, Inc.(Æ) 143,300 579 J&J Snack Foods Corp. 58,391 7,101
Scholastic Corp. 47,203 1,940 Lancaster Colony Corp. 11,050 1,436
Scientific Games Corp. Class A(Æ) 125,232 1,334 Medifast, Inc. 4,700 165
SeaWorld Entertainment, Inc. 41,395 637 MGP Ingredients, Inc. 61,610 2,649
Select Comfort Corp.(Æ) 30,825 735 National Beverage Corp.(Æ) 19,791 1,135
Sequential Brands Group, Inc.(Æ) 168,700 1,372 Natural Health Trends Corp. 48,457 1,628
Shoe Carnival, Inc. 17,100 450 Nomad Foods, Ltd.(Æ) 365,439 3,234
Six Flags Entertainment Corp. 21,800 1,229 Post Holdings, Inc.(Æ) 19,543 1,694
Sizmek, Inc.(Æ) 29,710 81 Primo Water Corp.(Æ) 93,094 1,115
Skechers U.S.A., Inc. Class A(Æ) 51,999 1,249 Sanderson Farms, Inc. 30,159 2,642
Sonic Corp. 32,700 880 Snyders-Lance, Inc. 44,874 1,537
Stamps.com, Inc.(Æ) 13,685 1,037 SpartanNash Co. 162,046 5,104
Standard Motor Products, Inc. 97,142 4,074 Tootsie Roll Industries, Inc. 23,315 866
Steven Madden, Ltd.(Æ) 71,142 2,491 TreeHouse Foods, Inc.(Æ) 16,878 1,742
Stoneridge, Inc.(Æ) 48,227 804 United Natural Foods, Inc.(Æ) 31,289 1,564
Strayer Education, Inc.(Æ) 5,500 251       67,446
Sturm Ruger & Co., Inc. 1,227 83        
Superior Industries International, Inc. 25,382 776 Energy - 3.0%      
Superior Uniform Group, Inc. 207,262 3,331 Ameresco, Inc. Class A(Æ) 34,128 169
Thor Industries, Inc. 53,438 4,090 Approach Resources, Inc.(Æ) 170,800 284
Tile Shop Holdings, Inc.(Æ) 100,823 1,719 Archrock, Inc. 45,400 405
Tilly's, Inc. Class A(Æ) 87,723 499 Bill Barrett Corp.(Æ) 201,600 1,204
Time, Inc. 229,820 3,753 Callon Petroleum Co.(Æ) 238,197 2,713
TiVo, Inc.(Æ) 76,000 801 Capstone Turbine Corp.(Æ) 40,200 62
Tower International, Inc. 32,691 755 Carrizo Oil & Gas, Inc.(Æ) 69,032 2,264
Townsquare Media, Inc. Class A(Æ) 198,529 1,624 Clean Energy Fuels Corp.(Æ) 89,100 266
TRI Pointe Group, Inc.(Æ) 132,916 1,788 Cobalt International Energy, Inc.(Æ) 244,400 364
Tribune Media Co. Class A 69,796 2,586 Contango Oil & Gas Co.(Æ) 71,371 659
TubeMogul, Inc.(Æ) 91,801 1,029 Delek US Holdings, Inc. 420,823 5,269
Universal Electronics, Inc.(Æ) 15,954 1,234 Eclipse Resources Corp.(Æ) 282,483 890
Universal Technical Institute, Inc.(Æ) 4,700 11 EnerNOC, Inc. - ADR(Æ) 51,300 384
Vail Resorts, Inc. 14,086 2,015 EP Energy Corp. Class A(Æ) 12,200 51
Vera Bradley, Inc.(Æ) 13,981 204 Exterran Corp.(Æ) 69,980 890
Vince Holding Corp.(Æ) 12,100 60 Flotek Industries, Inc.(Æ) 42,800 608
Vista Outdoor, Inc.(Æ) 50,120 2,509 Gastar Exploration, Inc.(Æ) 1,065,360 976
Vitamin Shoppe, Inc.(Æ) 11,600 339 Green Plains, Inc. 139,442 3,163
VOXX International Corp. Class A(Æ) 35,686 95 Gulf Island Fabrication, Inc. 32,887 278
WCI Communities, Inc.(Æ) 13,270 223 Gulfport Energy Corp.(Æ) 57,700 1,678
West Marine, Inc.(Æ) 30,660 269 Hallador Energy Co. 18,300 99
William Lyon Homes Class A(Æ) 152,157 2,640 Helix Energy Solutions Group, Inc.(Æ) 254,954 2,024
Wolverine World Wide, Inc. 156,504 3,833 Independence Contract Drilling, Inc.(Æ) 152,062 765
XO Group, Inc.(Æ) 42,887 782 ION Geophysical Corp.(Æ) 3,620 18
YuMe, Inc.(Æ) 33,520 120 Jones Energy, Inc. Class A(Æ) 19,000 70
ZAGG, Inc.(Æ) 39,340 249 Matrix Service Co.(Æ) 68,700 1,138
Zoe's Kitchen, Inc.(Æ) 14,055 500 Nabors Industries, Ltd. 483,066 4,348
      235,658 Newpark Resources, Inc.(Æ) 152,700 965
        Pacific Ethanol, Inc.(Æ) 226,200 1,545
Consumer Staples - 3.8%       Par Pacific Holdings, Inc.(Æ) 5,900 88
Andersons, Inc. (The) 128,765 4,762 Parker Drilling Co.(Æ) 60,400 125
Boston Beer Co., Inc. Class A(Æ) 3,355 613 Parsley Energy, Inc. Class A(Æ) 50,290 1,434
Cadiz, Inc.(Æ) 71,600 498 PBF Energy, Inc. Class A 4,800 107
Cal-Maine Foods, Inc.(Æ) 36,803 1,542 Phillips 66 Partners, LP 73,016 3,906
Casey's General Stores, Inc. 56,116 7,494 Pioneer Energy Services Corp.(Æ) 31,849 100
Core-Mark Holding Co., Inc. 196,492 9,620 QEP Resources, Inc.(Æ) 105,120 1,913
Energizer Holdings, Inc. 32,789 1,690 Renewable Energy Group, Inc.(Æ) 111,000 1,082

 

See accompanying notes which are an integral part of this quarterly report.

40 Russell U.S. Small Cap Equity Fund

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
REX American Resources Corp.(Æ) 2,785 183 Cash America International, Inc. 72,457 3,105
Rice Energy, Inc.(Æ) 43,954 1,025 CatchMark Timber Trust, Inc. Class A(ö) 155,200 1,879
Ring Energy, Inc.(Æ) 89,048 707 Cedar Realty Trust, Inc.(ö) 295,800 2,378
Sanchez Energy Corp.(Æ) 209,426 1,328 CenterState Banks, Inc. 71,576 1,192
Seadrill, Ltd.(Æ) 233,200 693 Central Pacific Financial Corp. 95,600 2,345
SunCoke Energy, Inc.(Æ) 85,800 655 Central Valley Community Bancorp 18,209 272
Superior Energy Services, Inc.(Æ) 53,071 848 Charter Financial Corp. 131,208 1,711
Synergy Resources Corp.(Æ) 129,200 841 Chatham Lodging Trust(ö) 30,948 742
TETRA Technologies, Inc.(Æ) 334,300 2,009 Chemical Financial Corp. 55,976 2,316
Westmoreland Coal Co.(Æ) 127,700 1,220 Cherry Hill Mortgage Investment Corp.(ö) 13,514 208
Whiting Petroleum Corp.(Æ) 17,400 128 Chesapeake Lodging Trust(ö) 21,568 545
Willbros Group, Inc.(Æ) 14,700 30 City Office REIT, Inc.(ö) 61,820 838
World Fuel Services Corp. 24,360 1,160 CNO Financial Group, Inc. 102,300 1,777
WPX Energy, Inc.(Æ) 89,329 892 CoBiz Financial, Inc. 106,472 1,315
      54,023 Cohen & Steers, Inc. 88,050 3,795
        Colony Capital, Inc. Class A(ö) 34,665 616
Financial Services - 24.5%       Colony Starwood Homes(ö) 108,780 3,564
Agree Realty Corp.(ö) 13,498 685 Columbia Banking System, Inc. 198,575 6,021
Alexander's, Inc.(ö) 2,040 876 Community Healthcare Trust, Inc.(ö) 121,869 2,802
Altisource Residential Corp.(ö) 101,467 974 Community Trust Bancorp, Inc. 15,070 524
American Campus Communities, Inc.(ö) 3,000 162 CommunityOne Bancorp(Æ) 14,313 186
American Equity Investment Life Holding       Consolidated-Tomoka Land Co. 40,231 1,969
Co. 197,392 3,144 CorEnergy Infrastructure Trust, Inc.(ö) 27,727 816
American National Bankshares, Inc. 3,290 86 CoreSite Realty Corp. Class A(ö) 7,389 610
AMERISAFE, Inc. 29,478 1,725 Corporate Office Properties Trust(ö) 152,071 4,556
Apollo Commercial Real Estate Finance,       Cousins Properties, Inc.(ö) 427,726 4,551
    Inc.(ö) 29,242 475 Crawford & Co. Class B 67,385 740
Arbor Realty Trust, Inc.(ö) 19,610 140 CU Bancorp(Æ) 9,144 217
Ares Commercial Real Estate Corp.(ö) 80,890 1,027 CubeSmart(ö) 5,608 167
Argo Group International Holdings, Ltd. 40,699 2,112 Customers Bancorp, Inc.(Æ) 88,100 2,268
Armada Hoffler Properties, Inc.(ö) 13,400 201 CyrusOne, Inc.(ö) 88,184 4,834
Ashford Hospitality Trust, Inc.(ö) 150,000 894 Diamond Hill Investment Group, Inc. 10,741 2,051
Ashford, Inc.(Æ) 14,576 671 DiamondRock Hospitality Co.(ö) 88,700 871
Associated Capital Group, Inc. Class A 8,159 244 Donegal Group, Inc. Class A 2,136 35
Assurant, Inc. 11,000 913 DuPont Fabros Technology, Inc.(ö) 78,906 3,774
Atlantic Capital Bancshares, Inc.(Æ) 20,400 303 Eagle Bancorp, Inc.(Æ) 4,315 222
Baldwin & Lyons, Inc. Class B 12,000 318 East West Bancorp, Inc. 7,700 264
Banc of California, Inc. 37,010 821 Easterly Government Properties, Inc.(ö) 21,397 438
BancFirst Corp. 15,700 1,029 EastGroup Properties, Inc.(ö) 16,600 1,222
Bank Mutual Corp. 54,439 416 Education Realty Trust, Inc.(ö) 22,467 1,082
Bank of Marin Bancorp 7,110 353 EMC Insurance Group, Inc. 13,399 372
Bank of the Ozarks, Inc. 171,263 6,164 Employers Holdings, Inc. 40,400 1,152
Banner Corp. 3,657 153 Enova International, Inc. Class W(Æ) 72,800 662
Beneficial Bancorp, Inc. 61,564 835 Enstar Group, Ltd.(Æ) 2,320 386
Berkshire Hills Bancorp, Inc. 34,244 903 EPR Properties(ö) 8,100 681
BGC Partners, Inc. Class A 160,410 1,423 Equity Commonwealth(Æ)(ö) 100,335 3,012
Bluerock Residential Growth REIT, Inc.       Essent Group, Ltd.(Æ) 59,449 1,424
     Class A(ö) 92,440 1,231 Euronet Worldwide, Inc.(Æ) 12,405 946
BNC Bancorp 101,115 2,453 Evercore Partners, Inc. Class A 55,413 2,808
Brandywine Realty Trust(ö) 200,561 3,383 Everi Holdings, Inc.(Æ) 68,800 131
Brookline Bancorp, Inc. 376,359 4,287 Farmers National Banc Corp. 7,100 68
Bryn Mawr Bank Corp. 3,600 106 FBR & Co. 92,500 1,394
Calamos Asset Management, Inc. Class A 21,000 146 FCB Financial Holdings, Inc. Class A(Æ) 20,410 714
Capital Bank Financial Corp. Class A 34,634 1,035 Federated National Holding Co. 21,331 447
Capital City Bank Group, Inc. 6,477 93 FelCor Lodging Trust, Inc.(ö) 268,405 1,704
Capital Southwest Corp. 57,933 848 Fidelity Southern Corp. 16,380 282
Cardinal Financial Corp. 103,750 2,673 Financial Institutions, Inc. 35,382 952
CareTrust REIT, Inc.(ö) 22,400 324 First BanCorp(Æ) 514,151 2,360
Carolina Financial Corp. 5,884 113 First Bancorp 14,600 273
Cascade Bancorp(Æ) 14,206 80 First Busey Corp. 38,832 875

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Small Cap Equity Fund 41

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
First Business Financial Services, Inc. 12,460 295 Kearny Financial Corp. 485,294 6,319
First Connecticut Bancorp, Inc. 6,300 101 Kemper Corp. 83,740 2,870
First Defiance Financial Corp. 20,800 867 Kennedy-Wilson Holdings, Inc. 119,700 2,520
First Financial Corp. 17,615 675 Lakeland Bancorp, Inc. 103,560 1,233
First Financial Northwest, Inc. 4,900 69 LaSalle Hotel Properties(ö) 153,916 4,240
First Foundation, Inc.(Æ) 43,738 1,041 LCNB Corp. 60,561 1,074
First Internet Bancorp 1,100 26 LendingTree, Inc.(Æ) 50,405 5,090
First Interstate BancSystem, Inc. Class A 57,935 1,682 Mack-Cali Realty Corp.(ö) 44,148 1,245
First Merchants Corp. 100,803 2,641 Maiden Holdings, Ltd. 211,270 2,951
First Midwest Bancorp, Inc. 228,421 4,265 Marcus & Millichap, Inc.(Æ) 17,278 463
First NBC Bank Holding Co.(Æ) 62,460 1,189 MB Financial, Inc. 110,448 4,240
First Potomac Realty Trust(ö) 42,793 433 Medical Properties Trust, Inc.(ö) 94,310 1,481
FNB Corp. 518,307 6,194 Merchants Bancshares, Inc. 200 6
FNFV Group(Æ) 546,029 6,514 Meridian Bancorp, Inc. 191,304 2,812
Four Corners Property Trust, Inc.(ö) 23,641 513 Meta Financial Group, Inc. 8,600 470
Franklin Financial Network, Inc.(Æ) 15,538 526 MGIC Investment Corp.(Æ) 32,111 231
Franklin Street Properties Corp.(ö) 32,474 416 Midland States Bancorp, Inc. 48,865 1,112
FRP Holdings, Inc.(Æ)(Þ) 61,631 2,242 MidWestOne Financial Group, Inc. 900 26
Fulton Financial Corp. 117,800 1,608 Monmouth Real Estate Investment Corp.(ö) 57,635 797
Genworth Financial, Inc. Class A(Æ) 432,000 1,236 National Bank Holdings Corp. Class A 261,079 5,229
GEO Group, Inc. (The)(ö) 104,500 3,617 National Commerce Corp.(Æ) 2,100 51
German American Bancorp, Inc. 2,648 90 National Health Investors, Inc.(ö) 8,402 660
Getty Realty Corp.(ö) 19,695 447 National Storage Affiliates Trust(ö) 74,471 1,591
Golub Capital BDC, Inc. 28,690 546 National Western Life Group, Inc. Class A 3,739 707
Gramercy Property Trust(ö) 272,600 2,723 Navigators Group, Inc. (The) 27,700 2,595
Great Southern Bancorp, Inc. 15,630 613 New Senior Investment Group, Inc.(ö) 242,929 2,913
Great Western Bancorp, Inc. 39,500 1,310 New York REIT, Inc.(ö) 55,941 534
Green Dot Corp. Class A(Æ) 48,794 1,181 NexPoint Residential Trust, Inc.(ö) 70,161 1,367
Greenhill & Co., Inc. 95,876 1,901 Nicolet Bankshares, Inc.(Æ) 1,769 64
Hallmark Financial Services, Inc.(Æ) 24,180 257 Northfield Bancorp, Inc. 146,000 2,180
Hancock Holding Co. 238,855 6,924 Northrim BanCorp, Inc. 3,000 85
Hanover Insurance Group, Inc. (The) 15,600 1,285 Northwest Bancshares, Inc. 233,481 3,481
HCI Group, Inc.(Æ) 43,910 1,324 OceanFirst Financial Corp. 17,281 326
Healthcare Realty Trust, Inc.(ö) 36,100 1,305 Old Line Bancshares, Inc. 7,598 145
Heartland Financial USA, Inc. 20,707 760 Old National Bancorp 551,786 7,262
Hercules Technology Growth Capital, Inc. 74,485 988 OM Asset Management PLC 15,832 222
Heritage Commerce Corp. 16,200 170 One Liberty Properties, Inc.(ö) 6,012 150
Heritage Financial Corp. 142,234 2,483 OneBeacon Insurance Group, Ltd. Class A 27,429 384
Heritage Insurance Holdings, Inc. 89,508 1,109 Oppenheimer Holdings, Inc. Class A 11,000 173
Hersha Hospitality Trust Class A(ö) 31,550 596 Opus Bank 25,742 831
Hilltop Holdings, Inc.(Æ) 4,880 106 Orrstown Financial Services, Inc. 4,100 79
Home Bancorp, Inc. 3,500 101 Owens Realty Mortgage, Inc.(ö) 7,076 118
Home BancShares, Inc. 291,938 6,093 Pacific Mercantile Bancorp(Æ) 8,800 60
HomeTrust Bancshares, Inc.(Æ) 12,670 233 Pacific Premier Bancorp, Inc.(Æ) 49,809 1,203
Hope Bancorp, Inc. 69,771 1,072 PacWest Bancorp 85,840 3,549
Horace Mann Educators Corp. 10,100 345 Paramount Group, Inc.(ö) 15,400 272
Horizon Bancorp 3,000 83 Park Sterling Corp. 48,200 372
Houlihan Lokey, Inc. Class A 20,852 478 Parkway Properties, Inc.(ö) 363,034 6,306
Howard Hughes Corp. (The)(Æ) 14,800 1,768 Peapack Gladstone Financial Corp. 18,656 374
Iberiabank Corp. 122,466 7,650 Pebblebrook Hotel Trust(ö) 21,074 625
Independent Bank Corp. 118,039 1,815 PennyMac Financial Services, Inc. Class      
Independent Bank Group, Inc. 13,125 555      A(Æ) 18,661 235
Infinity Property & Casualty Corp. 9,834 807 Peoples Bancorp, Inc. 12,544 282
InfraREIT, Inc.(ö) 35,600 629 People's Utah Bancorp 40,950 732
Investment Technology Group, Inc. 29,500 493 Physicians Realty Trust(ö) 66,335 1,441
Investors Bancorp, Inc. 88,800 1,009 Pinnacle Financial Partners, Inc. 24,524 1,302
Jack Henry & Associates, Inc. 65,719 5,865 Planet Payment, Inc.(Æ) 466,603 2,188
James River Group Holdings, Ltd. 17,598 592 Popular, Inc. 124,659 4,200
JMP Group LLC 84,358 457 Post Properties, Inc.(ö) 5,700 362
KCG Holdings, Inc. Class A(Æ) 61,712 934 Potlatch Corp.(ö) 215,956 8,260

 

See accompanying notes which are an integral part of this quarterly report.

42 Russell U.S. Small Cap Equity Fund

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Preferred Apartment Communities, Inc. Class       Univest Corp. of Pennsylvania 10,167 214
A(ö) 81,896 1,218 Washington Federal, Inc. 84,200 2,105
Preferred Bank 22,980 751 Washington Real Estate Investment Trust(ö) 14,599 501
PrivateBancorp, Inc. Class A 4,800 212 WashingtonFirst Bankshares, Inc. 9,758 234
Prosperity Bancshares, Inc. 162,360 8,295 WesBanco, Inc. 122,182 3,778
Provident Financial Holdings, Inc. 6,037 118 Western Alliance Bancorp(Æ) 66,376 2,259
Provident Financial Services, Inc. 115,367 2,325 Wintrust Financial Corp. 79,324 4,188
PS Business Parks, Inc.(ö) 20,932 2,321 WisdomTree Investments, Inc. 126,400 1,256
RAIT Financial Trust(ö) 75,900 241 WP Glimcher, Inc.(ö) 41,475 526
Ramco-Gershenson Properties Trust(ö) 26,249 521 WSFS Financial Corp. 48,855 1,719
RE/MAX Holdings, Inc. Class A 47,500 2,058 Xenia Hotels & Resorts, Inc.(ö) 22,901 411
Real Industry, Inc.(Æ) 42,300 332 Yadkin Financial Corp. 90,737 2,286
Reinsurance Group of America, Inc. Class A 10,300 1,022       438,143
Renasant Corp. 1,960 63        
Retail Opportunity Investments Corp.(ö) 224,032 5,115 Health Care - 11.7%      
Rexford Industrial Realty, Inc.(ö) 60,390 1,381 Abaxis, Inc. 77,186 3,818
Ryman Hospitality Properties, Inc.(ö) 47,660 2,680 Abiomed, Inc.(Æ) 46,890 5,532
Sabra Health Care REIT, Inc.(ö) 133,879 3,201 Accuray, Inc.(Æ) 585,300 3,207
Sandy Spring Bancorp, Inc. 6,500 194 Achaogen, Inc.(Æ) 3,647 14
Saul Centers, Inc.(ö) 6,860 461 Achillion Pharmaceuticals, Inc.(Æ) 58,507 484
Selective Insurance Group, Inc. 54,100 2,119 Aclaris Therapeutics, Inc.(Æ) 27,096 534
Seritage Growth Properties(ö) 26,300 1,317 Addus HomeCare Corp.(Æ) 9,994 188
Shore Bancshares, Inc. 7,798 92 Air Methods Corp.(Æ) 19,770 658
Sierra Bancorp 6,150 110 Akorn, Inc.(Æ) 36,707 1,256
Silver Bay Realty Trust Corp.(ö) 79,348 1,430 Allscripts Healthcare Solutions, Inc.(Æ) 243,045 3,432
Simmons First National Corp. Class A 2,529 116 AMAG Pharmaceuticals, Inc.(Æ) 238,882 6,338
SLM Corp.(Æ) 107,340 772 Amedisys, Inc.(Æ) 39,778 2,130
South State Corp. 65,242 4,757 American Renal Associates Holdings, Inc.      
Southern First Bancshares, Inc.(Æ) 800 22 (Æ) 19,305 460
Southern Missouri Bancorp, Inc. 2,348 57 AMN Healthcare Services, Inc.(Æ) 147,094 6,222
Southern National Bancorp of Virginia, Inc. 58,391 778 Amphastar Pharmaceuticals, Inc.(Æ) 52,722 853
Southwest Bancorp, Inc. 149,221 2,898 Analogic Corp. 26,463 2,223
Sovran Self Storage, Inc.(Æ)(ö) 8,640 884 ANI Pharmaceuticals, Inc.(Æ) 13,519 819
Starwood Property Trust, Inc.(ö) 46,453 1,013 Anika Therapeutics, Inc.(Æ) 39,188 1,956
State Auto Financial Corp. 10,472 236 Applied Genetic Technologies Corp.(Æ) 18,540 279
State Bank Financial Corp. 214,890 4,702 Athersys, Inc.(Æ) 247,814 550
Sterling Bancorp 111,222 1,879 Atrion Corp. 2,571 1,226
Stewart Information Services Corp. 31,321 1,341 aTyr Pharma, Inc.(Æ) 79,210 270
Stifel Financial Corp.(Æ) 100 4 Avexis, Inc.(Æ) 11,424 430
Stock Yards Bancorp, Inc. 12,453 368 AxoGen, Inc.(Æ) 31,262 210
Stonegate Bank 72,334 2,292 BioDelivery Sciences International, Inc.(Æ) 761,749 1,942
Summit Hotel Properties, Inc.(ö) 36,862 523 BioSpecifics Technologies Corp.(Æ) 9,186 372
Sunstone Hotel Investors, Inc.(ö) 51,334 683 BioTelemetry, Inc.(Æ) 85,221 1,621
Talmer Bancorp, Inc. Class A 62,102 1,305 Cambrex Corp.(Æ) 65,322 3,424
Tanger Factory Outlet Centers, Inc.(ö) 231,659 9,669 Capital Senior Living Corp.(Æ) 210,253 4,096
Terreno Realty Corp.(ö) 18,648 519 Chembio Diagnostics, Inc.(Æ) 26,363 158
Territorial Bancorp, Inc. 16,541 445 Chemed Corp. 40,860 6,012
Texas Capital Bancshares, Inc.(Æ) 21,067 1,023 ChemoCentryx, Inc.(Æ) 21,600 102
TriCo Bancshares 59,827 1,557 Coherus Biosciences, Inc.(Æ) 38,082 967
TriState Capital Holdings, Inc.(Æ) 33,971 485 Concert Pharmaceuticals, Inc.(Æ) 19,935 229
Trupanion, Inc.(Æ) 39,951 602 CorVel Corp.(Æ) 33,413 1,510
TrustCo Bank Corp. 202,435 1,342 Corvus Pharmaceuticals, Inc.(Æ) 7,205 95
Two Harbors Investment Corp.(ö) 74,700 654 Cross Country Healthcare, Inc.(Æ) 115,247 1,685
UMB Financial Corp. 77,877 4,315 CryoLife, Inc.(Æ) 55,613 810
Umpqua Holdings Corp. 121,871 1,856 CTI BioPharma Corp.(Æ) 428,000 143
United Community Banks, Inc. 84,100 1,618 Cynosure, Inc. Class A(Æ) 172,148 9,461
United Financial Bancorp, Inc. 100,177 1,317 CytomX Therapeutics, Inc.(Æ) 21,842 220
United Fire Group, Inc. 40,205 1,689 Depomed, Inc.(Æ) 58,039 1,101
United Insurance Holdings Corp. 12,200 193 Derma Sciences, Inc.(Æ) 35,454 169
Universal Insurance Holdings, Inc. 25,650 558 Dermira, Inc.(Æ) 20,303 681

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Small Cap Equity Fund 43

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Dipexium Pharmaceuticals, Inc.(Æ) 34,849 364 Nobilis Health Corp.(Æ) 168,989 482
Egalet Corp.(Æ) 5,600 41 NuVasive, Inc.(Æ) 49,534 3,081
Emergent BioSolutions, Inc.(Æ) 34,500 1,152 Omnicell, Inc.(Æ) 4,534 175
Enanta Pharmaceuticals, Inc.(Æ) 18,149 408 Orthofix International NV(Æ) 22,493 1,066
Endocyte, Inc.(Æ) 15,600 50 Osiris Therapeutics, Inc.(Æ) 9,387 47
Ensign Group, Inc. (The) 225,539 4,849 Owens & Minor, Inc. 80,359 2,870
Envision Healthcare Holdings, Inc.(Æ) 37,219 915 Patheon NV(Æ) 15,000 388
Everyday Health, Inc.(Æ) 42,300 345 PDL BioPharma, Inc.(Æ) 446,361 1,571
Exactech, Inc.(Æ) 54,865 1,483 Penumbra, Inc.(Æ) 21,223 1,450
Exelixis, Inc.(Æ) 54,861 504 Peregrine Pharmaceuticals, Inc.(Æ) 38,300 14
Fate Therapeutics, Inc.(Æ) 62,500 129 PharMerica Corp.(Æ) 12,106 322
Five Prime Therapeutics, Inc.(Æ) 26,984 1,368 Prestige Brands Holdings, Inc.(Æ) 63,006 3,371
Five Star Quality Care, Inc.(Æ) 104,251 247 Providence Service Corp. (The)(Æ) 23,400 1,132
Flamel Technologies SA - ADR(Æ) 340,553 4,260 Quorum Health Corp.(Æ) 235,269 2,562
Geron Corp.(Æ) 155,188 416 Repligen Corp.(Æ) 17,113 489
Globus Medical, Inc. Class A(Æ) 234,379 5,379 Retrophin, Inc.(Æ) 23,978 430
HealthEquity, Inc.(Æ) 10,397 307 Rigel Pharmaceuticals, Inc.(Æ) 155,708 357
HealthSouth Corp. 90,622 3,901 Sagent Pharmaceuticals, Inc.(Æ) 4,245 92
Heron Therapeutics, Inc.(Æ) 25,002 416 SeaSpine Holdings Corp.(Æ) 1,889 18
Heska Corp.(Æ) 65,905 2,804 Spectranetics Corp. (The)(Æ) 26,709 619
Horizon Pharma PLC(Æ) 49,595 957 Spectrum Pharmaceuticals, Inc.(Æ) 45,300 311
Icon PLC(Æ) 10,974 852 Stemline Therapeutics, Inc.(Æ) 18,232 135
ICU Medical, Inc.(Æ) 31,646 3,695 Steris PLC 65,844 4,672
Ignyta, Inc.(Æ) 10,600 58 Supernus Pharmaceuticals, Inc.(Æ) 240,094 5,335
Immune Design Corp.(Æ) 9,300 71 Surmodics, Inc.(Æ) 63,149 1,732
Impax Laboratories, Inc.(Æ) 31,909 1,003 Tandem Diabetes Care, Inc.(Æ) 114,902 762
Inogen, Inc.(Æ) 17,316 931 Teladoc, Inc.(Æ) 40,763 711
Inovio Pharmaceuticals, Inc.(Æ) 97,058 959 TherapeuticsMD, Inc.(Æ) 61,015 474
Insys Therapeutics, Inc.(Æ) 28,014 438 Theravance Biopharma, Inc.(Æ) 25,297 645
Integra LifeSciences Holdings Corp.(Æ) 50,640 4,267 TransEnterix, Inc.(Æ) 22,400 30
Intellia Therapeutics, Inc.(Æ) 17,161 325 Trinity Biotech PLC - ADR(Æ) 210,172 2,697
Intersect ENT, Inc.(Æ) 38,516 610 Triple-S Management Corp. Class B(Æ) 70,594 1,754
Intra-Cellular Therapies, Inc. Class A(Æ) 11,695 477 US Physical Therapy, Inc. 1,254 75
Invacare Corp. 85,182 981 Utah Medical Products, Inc. 13,403 872
iRadimed Corp.(Æ) 40,242 779 Vascular Solutions, Inc.(Æ) 22,215 1,019
Juniper Pharmaceuticals, Inc.(Æ) 200 2 Verastem, Inc.(Æ) 105,480 148
Karyopharm Therapeutics, Inc.(Æ) 4,100 30 Versartis, Inc.(Æ) 31,200 359
Keryx Biopharmaceuticals, Inc.(Æ) 81,201 598 Vical, Inc.(Æ) 4,390 18
Kindred Healthcare, Inc. 17,674 217 Voyager Therapeutics, Inc.(Æ) 21,593 318
Lexicon Pharmaceuticals, Inc.(Æ) 117,194 1,913 VWR Corp.(Æ) 77,526 2,428
Ligand Pharmaceuticals, Inc. Class B(Æ) 83,845 11,309 WellCare Health Plans, Inc.(Æ) 6,520 696
Loxo Oncology, Inc.(Æ) 19,983 514 Xencor, Inc.(Æ) 50,570 958
Magellan Health, Inc.(Æ) 36,100 2,472 Zeltiq Aesthetics, Inc.(Æ) 59,087 2,006
Masimo Corp.(Æ) 9,000 477       209,642
Meridian Bioscience, Inc. 30,718 595        
Merit Medical Systems, Inc.(Æ) 31,934 749 Materials and Processing - 6.3%      
MiMedx Group, Inc.(Æ) 56,284 422 A Schulman, Inc. 106,411 3,119
Minerva Neurosciences, Inc.(Æ) 62,911 698 Aceto Corp. 23,397 602
Molina Healthcare, Inc.(Æ) 86,533 4,916 AK Steel Holding Corp.(Æ) 100,225 657
MyoKardia, Inc.(Æ) 37,646 665 Allegheny Technologies, Inc. 48,500 864
Myriad Genetics, Inc.(Æ) 18,614 577 A-Mark Precious Metals, Inc. 1,000 17
NanoString Technologies, Inc.(Æ) 43,866 596 Ampco-Pittsburgh Corp. 19,191 254
Natera, Inc.(Æ) 46,764 613 Apogee Enterprises, Inc. 116,340 5,439
National HealthCare Corp. 10,252 662 Armstrong Flooring, Inc.(Æ) 204,284 4,071
National Research Corp. Class A 10,925 164 Armstrong World Industries, Inc.(Æ) 75,137 3,191
Natus Medical, Inc.(Æ) 37,116 1,460 Ascent Capital Group, Inc. Class A(Æ) 46,648 794
Neogen Corp.(Æ) 30,061 1,658 Aspen Aerogels, Inc.(Æ) 12,300 61
NeoGenomics, Inc.(Æ) 465,439 4,059 Beacon Roofing Supply, Inc.(Æ) 41,887 1,970
Nevro Corp.(Æ) 23,460 1,940 Berry Plastics Group, Inc.(Æ) 108,522 4,449
Nivalis Therapeutics, Inc.(Æ) 3,631 17 Boise Cascade Co.(Æ) 48,738 1,324

 

See accompanying notes which are an integral part of this quarterly report.

44 Russell U.S. Small Cap Equity Fund

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Cabot Microelectronics Corp. 67,620 3,558 US Silica Holdings, Inc. 41,188 1,420
Calgon Carbon Corp. 31,500 435       111,776
Carpenter Technology Corp. 18,600 730        
Century Aluminum Co.(Æ) 74,560 566 Producer Durables - 14.6%      
Chase Corp. 12,081 732 AAR Corp. 131,740 3,183
Cliffs Natural Resources, Inc.(Æ) 66,771 528 ACCO Brands Corp.(Æ) 229,941 2,585
Comfort Systems USA, Inc. 76,672 2,329 Accuride Corp.(Æ) 9,489 13
Compass Minerals International, Inc. 74,294 5,170 Advanced Energy Industries, Inc.(Æ) 15,127 616
CompX International, Inc. 3,096 37 Aerovironment, Inc.(Æ) 23,933 678
Continental Building Products, Inc.(Æ) 24,523 575 AGCO Corp. 2,300 111
Core Molding Technologies, Inc.(Æ) 6,620 105 Air Transport Services Group, Inc.(Æ) 178,212 2,580
FutureFuel Corp. 41,892 480 Allegiant Travel Co. Class A 5,620 729
Gibraltar Industries, Inc.(Æ) 20,937 739 Allied Motion Technologies, Inc. 65,139 1,473
Global Brass & Copper Holdings, Inc. 34,854 987 American Superconductor Corp.(Æ) 46,008 422
Gold Resource Corp. 194,373 1,092 ArcBest Corp. 3,200 60
Greif, Inc. Class A 96,784 3,884 Ardmore Shipping Corp. 83,300 586
Haynes International, Inc. 70,893 2,693 Argan, Inc. 69,152 3,190
Headwaters, Inc.(Æ) 108,608 2,160 Astec Industries, Inc. 10,983 662
Hi-Crush Partners, LP(Æ) 102,617 1,187 Atlas Air Worldwide Holdings, Inc.(Æ) 12,610 545
Huntsman Corp. 40,957 633 Babcock & Wilcox Co. (The) 254,956 9,385
Innospec, Inc. 17,286 869 Babcock & Wilcox Enterprises, Inc.(Æ) 129,423 1,988
Installed Building Products, Inc.(Æ) 51,686 1,852 Barrett Business Services, Inc. 17,984 773
Insteel Industries, Inc. 46,833 1,629 Brink's Co. (The) 64,501 2,117
Interface, Inc. Class A 233,031 4,162 CBIZ, Inc.(Æ) 252,640 2,731
Koppers Holdings, Inc.(Æ) 24,244 767 CDI Corp.(Æ) 56,610 358
Kraton Performance Polymers, Inc.(Æ) 39,400 1,178 CEB, Inc. 49,546 2,975
Kronos Worldwide, Inc. 368,287 2,081 Celadon Group, Inc. 113,362 936
Landec Corp.(Æ) 113,200 1,302 Chart Industries, Inc.(Æ) 69,030 2,072
Lawson Products, Inc.(Æ) 2,100 34 CIRCOR International, Inc. 8,867 505
LB Foster Co. Class A 32,957 345 Clarcor, Inc. 23,877 1,487
LSB Industries, Inc.(Æ) 9,800 113 Columbus McKinnon Corp. 13,000 216
Materion Corp. 23,782 628 Commercial Vehicle Group, Inc.(Æ) 62,600 259
Neenah Paper, Inc. 16,630 1,254 Control4 Corp.(Æ) 37,237 324
NewMarket Corp. 7,823 3,348 Convergys Corp. 28,097 749
NN, Inc. 48,700 822 CoStar Group, Inc.(Æ) 10,857 2,257
Olympic Steel, Inc. 12,059 346 Covanta Holding Corp. 55,700 892
Omnova Solutions, Inc.(Æ) 81,881 775 CPI Aerostructures, Inc.(Æ) 63,792 421
Patrick Industries, Inc.(Æ) 17,280 1,116 CRA International, Inc.(Æ) 26,901 743
PGT, Inc.(Æ) 102,507 1,230 CUI Global, Inc.(Æ) 31,326 155
Ply Gem Holdings, Inc.(Æ) 45,322 696 Curtiss-Wright Corp. 26,809 2,386
PolyOne Corp. 116,795 4,096 Darling Ingredients, Inc.(Æ) 67,171 1,060
Quaker Chemical Corp. 47,411 4,535 Deluxe Corp. 57,714 3,901
Quanex Building Products Corp. 38,303 766 Dorian LPG, Ltd.(Æ) 91,200 563
Rayonier Advanced Materials, Inc. 34,900 481 Douglas Dynamics, Inc. 29,778 798
Resolute Forest Products, Inc.(Æ) 121,058 668 Ducommun, Inc.(Æ) 18,000 348
Ryerson Holding Corp.(Æ) 3,200 46 Dycom Industries, Inc.(Æ) 54,097 5,088
Schweitzer-Mauduit International, Inc. 84,289 3,187 Echo Global Logistics, Inc.(Æ) 47,502 1,176
Silgan Holdings, Inc. 25,870 1,283 EMCOR Group, Inc. 45,020 2,508
SiteOne Landscape Supply, Inc.(Æ) 16,700 649 EnerSys 22,100 1,378
Stepan Co. 20,212 1,300 Engility Holdings, Inc.(Æ) 54,651 1,587
Summit Materials, Inc. Class A(Æ) 135,756 3,006 Essendant, Inc. 50,609 1,014
TimkenSteel Corp.(Æ) 26,778 268 Esterline Technologies Corp.(Æ) 8,365 509
Tredegar Corp. 4,300 76 Exponent, Inc. 80,838 4,107
Tronox, Ltd. Class A 544,883 3,536 Forrester Research, Inc. 2,883 118
UFP Technologies, Inc.(Æ) 20,493 469 FreightCar America, Inc. 277,374 4,133
Unifi, Inc.(Æ) 8,443 228 Frontline, Ltd. 16,100 128
United States Lime & Minerals, Inc. 1,961 124 G&K Services, Inc. Class A 45,634 3,660
Universal Forest Products, Inc. 11,700 1,265 Gener8 Maritime, Inc.(Æ) 53,424 284
US Concrete, Inc.(Æ) 68,118 4,394 Generac Holdings, Inc.(Æ) 27,800 1,051
        Genesee & Wyoming, Inc. Class A(Æ) 13,510 875

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Small Cap Equity Fund 45

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Granite Construction, Inc. 150,861 7,510 Primoris Services Corp. 170,677 3,081
Great Lakes Dredge & Dock Corp.(Æ) 704,100 3,126 Quad/Graphics, Inc. 46,398 1,177
Greenbrier Cos., Inc. 34,018 1,117 Rand Logistics, Inc.(Æ) 90,100 95
H&E Equipment Services, Inc. 40,580 756 Regal Beloit Corp. 63,699 3,886
Hardinge, Inc. 28,615 289 Rexnord Corp.(Æ) 45,078 960
Harsco Corp.(Æ) 141,896 1,389 Ritchie Bros Auctioneers, Inc. 135,599 4,502
Healthcare Services Group, Inc. 122,561 4,757 Roadrunner Transportation Systems, Inc.(Æ) 28,300 214
HEICO Corp. 85,902 5,971 RPX Corp. Class A(Æ) 122,055 1,229
Heidrick & Struggles International, Inc. 21,105 411 Ryder System, Inc. 41,534 2,737
HNI Corp. 39,994 2,085 Scorpio Bulkers, Inc.(Æ) 21,200 70
Houston Wire & Cable Co. 23,300 135 Scorpio Tankers, Inc. 349,300 1,663
Hub Group, Inc. Class A(Æ) 33,090 1,355 SkyWest, Inc. 185,886 5,348
Hudson Technologies, Inc.(Æ) 57,818 284 Spartan Motors, Inc. 116,908 993
Huron Consulting Group, Inc.(Æ) 76,886 4,726 Spirit Airlines, Inc.(Æ) 16,900 722
Hyster-Yale Materials Handling, Inc. 28,431 1,814 SPX Corp.(Æ) 37,100 562
ICF International, Inc.(Æ) 77,800 3,219 Standex International Corp. 37,811 3,358
Information Services Group, Inc.(Æ) 575,987 2,183 StealthGas, Inc.(Æ) 186,620 664
InnerWorkings, Inc.(Æ) 121,200 1,031 Sterling Construction Co., Inc.(Æ) 120,600 702
Insperity, Inc. 13,561 1,064 Strattec Security Corp. 4,625 206
John Bean Technologies Corp. 20,223 1,353 SuperCom, Ltd.(Æ) 130,387 422
Kaman Corp. Class A 30,590 1,320 Swift Transportation Co. Class A(Æ) 194,919 3,752
KBR, Inc. 544,731 7,637 Sykes Enterprises, Inc.(Æ) 55,272 1,696
Kelly Services, Inc. Class A 55,737 1,141 Teekay Tankers, Ltd. Class A 351,752 1,038
Kimball International, Inc. Class B 222,188 2,531 Teledyne Technologies, Inc.(Æ) 23,105 2,426
KLX, Inc.(Æ) 30,111 973 TeleTech Holdings, Inc. 2,583 74
Knight Transportation, Inc. 18,403 549 Textainer Group Holdings, Ltd. 44,344 527
Korn/Ferry International 91,620 2,108 Titan Machinery, Inc.(Æ) 115,022 1,289
Kratos Defense & Security Solutions, Inc.(Æ) 89,500 395 TopBuild Corp.(Æ) 24,125 911
Layne Christensen Co.(Æ) 88,908 711 TransDigm Group, Inc.(Æ) 6,800 1,901
Liquidity Services, Inc.(Æ) 41,100 332 TriMas Corp.(Æ) 128,816 2,302
Littelfuse, Inc. 34,546 4,319 Triumph Group, Inc. 19,700 607
Lydall, Inc.(Æ) 25,418 1,136 Tutor Perini Corp.(Æ) 151,492 3,805
Manitowoc Co., Inc. (The) 211,851 1,180 Twin Disc, Inc.(Æ) 2,800 26
Manitowoc Foodservice, Inc.(Æ) 103,097 1,891 USA Truck, Inc.(Æ) 5,500 106
ManpowerGroup, Inc. 1,500 104 Vectrus, Inc.(Æ) 134,329 4,184
Marten Transport, Ltd. 41,956 908 Virgin America, Inc.(Æ) 7,008 392
MasTec, Inc.(Æ) 231,524 5,661 Vishay Precision Group, Inc.(Æ) 14,500 191
MAXIMUS, Inc. 60,077 3,540 WageWorks, Inc.(Æ) 80,540 4,978
Maxwell Technologies, Inc.(Æ) 65,195 359 Woodward, Inc. 6,400 375
McGrath RentCorp 137,637 4,386       261,173
Mesa Laboratories, Inc. 6,347 734        
Mistras Group, Inc.(Æ) 53,336 1,337 Technology - 16.1%      
Mitek Systems, Inc.(Æ) 77,517 585 ACI Worldwide, Inc.(Æ) 51,000 1,010
Mobile Mini, Inc. 15,975 519 Acxiom Corp.(Æ) 229,158 5,259
Modine Manufacturing Co.(Æ) 77,861 747 ADTRAN, Inc. 358,441 6,524
Moog, Inc. Class A(Æ) 39,393 2,169 Advanced Micro Devices, Inc.(Æ) 222,900 1,529
MSA Safety, Inc. 26,981 1,508 Aerohive Networks, Inc.(Æ) 73,300 536
MTS Systems Corp. 12,780 606 Alarm.com Holdings, Inc.(Æ) 47,677 1,370
MYR Group, Inc.(Æ) 43,131 1,064 Alpha & Omega Semiconductor, Ltd.(Æ) 57,586 823
Navigant Consulting, Inc.(Æ) 39,267 774 Ambarella, Inc.(Æ) 33,747 1,957
Navios Maritime Acquisition Corp. 157,210 241 Anixter International, Inc.(Æ) 20,026 1,227
Navistar International Corp.(Æ) 103,825 1,331 Apigee Corp.(Æ) 97,670 1,215
NV5 Global, Inc.(Æ) 60,171 1,936 Applied Micro Circuits Corp.(Æ) 169,700 1,117
On Assignment, Inc.(Æ) 133,414 4,930 Applied Optoelectronics, Inc.(Æ) 61,970 734
Orion Group Holdings, Inc.(Æ) 191,066 1,079 ARC Document Solutions, Inc.(Æ) 299,760 1,181
Oshkosh Corp. 101,045 5,567 Aspen Technology, Inc.(Æ) 25,302 1,060
PAM Transportation Services, Inc.(Æ) 20,103 403 Autobytel, Inc.(Æ) 201,935 3,001
PFSweb, Inc.(Æ) 79,963 792 Avid Technology, Inc.(Æ) 101,970 664
Powell Industries, Inc. 11,894 438 Barracuda Networks, Inc.(Æ) 33,557 741
PRGX Global, Inc.(Æ) 8,090 38 Bazaarvoice, Inc.(Æ) 226,558 940

 

See accompanying notes which are an integral part of this quarterly report.

46 Russell U.S. Small Cap Equity Fund

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Bel Fuse, Inc. Class B 19,687 403 Intevac, Inc.(Æ) 2,294 13
Benchmark Electronics, Inc.(Æ) 189,342 4,438 iRobot Corp.(Æ) 13,000 493
Benefitfocus, Inc.(Æ) 21,259 914 Ixia(Æ) 10,700 123
Black Box Corp. 16,700 228 Jabil Circuit, Inc. 323,871 6,591
Brightcove, Inc.(Æ) 79,792 835 JDS Uniphase Corp.(Æ) 309,640 2,208
BroadSoft, Inc.(Æ) 59,687 2,676 Jive Software, Inc.(Æ) 23,900 91
Brooks Automation, Inc. 37,856 474 Kemet Corp.(Æ) 54,416 187
CACI International, Inc. Class A(Æ) 18,800 1,792 Key Tronic Corp.(Æ) 6,593 50
CalAmp Corp.(Æ) 378,325 5,372 KEYW Holding Corp. (The)(Æ) 179,400 1,837
Calix, Inc.(Æ) 115,966 895 Kimball Electronics, Inc.(Æ) 106,787 1,348
Callidus Software, Inc.(Æ) 345,306 7,089 KVH Industries, Inc.(Æ) 11,724 106
Carbonite, Inc.(Æ) 108,455 1,194 Leidos Holdings, Inc. 49,631 2,482
Cavium, Inc.(Æ) 135,401 6,319 Limelight Networks, Inc.(Æ) 98,084 166
CEVA, Inc.(Æ) 120,491 3,622 Lionbridge Technologies, Inc.(Æ) 454,380 2,049
Ciber, Inc.(Æ) 761,700 1,066 LogMeIn, Inc.(Æ) 29,582 2,541
Coherent, Inc.(Æ) 20,951 2,222 Lumentum Holdings, Inc.(Æ) 187,555 5,674
Cohu, Inc. 260,633 2,752 ManTech International Corp. Class A 108,298 4,279
Commercehub, Inc.(Æ) 112,953 1,589 Marin Software, Inc.(Æ) 49,231 123
CommVault Systems, Inc.(Æ) 46,902 2,427 Marketo, Inc.(Æ) 104,107 3,663
Computer Task Group, Inc. 3,100 15 MaxLinear, Inc. Class A(Æ) 25,416 554
comScore, Inc.(Æ) 18,599 483 MeetMe, Inc.(Æ) 101,893 655
Comtech Telecommunications Corp. 68,335 893 Mentor Graphics Corp. 106,932 2,284
Cornerstone OnDemand, Inc.(Æ) 134,955 5,829 Mercury Systems, Inc.(Æ) 75,927 1,968
CTS Corp. 147,531 2,819 Methode Electronics, Inc. 67,781 2,374
CyberArk Software, Ltd.(Æ) 15,472 872 MicroStrategy, Inc. Class A(Æ) 6,360 1,112
Cypress Semiconductor Corp. 255,138 2,970 MobileIron, Inc. 11,100 38
Daktronics, Inc. 79,656 515 Model N, Inc.(Æ) 151,601 1,957
Datalink Corp.(Æ) 23,178 199 Monotype Imaging Holdings, Inc. 286,900 5,678
Demand Media, Inc.(Æ) 22,595 131 MRV Communications, Inc.(Æ) 1,400 16
Diebold, Inc. 296,905 8,385 Nanometrics, Inc.(Æ) 32,259 647
Digi International, Inc.(Æ) 134,138 1,490 NeoPhotonics Corp.(Æ) 223,192 2,801
Digimarc Corp.(Æ) 14,150 515 NETGEAR, Inc.(Æ) 22,018 1,132
Digital Turbine, Inc.(Æ) 9,800 11 NIC, Inc. 1,691 39
Ebix, Inc. 10,847 578 Nice, Ltd. - ADR 8,290 569
Electro Scientific Industries, Inc.(Æ) 83,107 563 NII Holdings, Inc.(Æ) 269,365 819
Ellie Mae, Inc.(Æ) 7,766 715 NVE Corp. 3,067 175
EMCORE Corp.(Æ) 138,376 897 Oclaro, Inc.(Æ) 181,155 1,038
EPAM Systems, Inc.(Æ) 5,918 416 Ooma, Inc.(Æ) 45,210 384
ePlus, Inc.(Æ) 3,917 329 Orbotech, Ltd.(Æ) 55,545 1,585
Evolent Health, Inc. Class A(Æ) 76,361 1,798 Paycom Software, Inc.(Æ) 30,428 1,437
Exar Corp.(Æ) 526,482 4,412 PC Connection, Inc. 55,403 1,430
Extreme Networks, Inc.(Æ) 193,503 753 PC-Telephone, Inc. 7,800 40
Fabrinet(Æ) 75,760 2,861 PDF Solutions, Inc.(Æ)(Þ) 285,970 4,719
FireEye, Inc.(Æ) 287,057 5,001 PDF Solutions, Inc.(Å)(Æ) 233,725 3,856
Five9, Inc.(Æ) 251,694 3,174 Perficient, Inc.(Æ) 209,761 4,661
FormFactor, Inc.(Æ) 173,359 1,621 Photronics, Inc.(Æ) 150,531 1,454
Gigamon, Inc.(Æ) 86,498 4,041 Pixelworks, Inc.(Æ) 35,169 70
Globant SA(Æ) 13,893 586 Plantronics, Inc. 12,800 618
GrubHub, Inc.(Æ) 58,054 2,201 Plexus Corp.(Æ) 28,322 1,301
GTT Communications, Inc.(Æ) 77,072 1,582 Polycom, Inc.(Æ) 92,384 1,145
Harmonic, Inc.(Æ) 378,725 1,246 Power Integrations, Inc. 52,115 2,974
IAC/InterActiveCorp(Æ) 27,640 1,602 Proofpoint, Inc.(Æ) 92,037 6,983
Immersion Corp.(Æ) 134,700 1,012 Q2 Holdings, Inc.(Æ) 83,901 2,490
Imperva, Inc.(Æ) 21,516 1,014 QAD, Inc. Class A 54,141 1,024
Infinera Corp.(Æ) 15,615 137 QLogic Corp.(Æ) 8,823 137
Inphi Corp.(Æ) 14,989 527 Quantum Corp.(Æ) 748,172 456
Insight Enterprises, Inc.(Æ) 20,732 552 Radisys Corp.(Æ) 310,719 1,498
Interactive Intelligence Group, Inc.(Æ) 16,084 868 Rambus, Inc.(Æ) 140,191 1,895
InterDigital, Inc. 24,005 1,418 RetailMeNot, Inc.(Æ) 91,599 765
InterXion Holding NV(Æ) 44,961 1,703 Revolution Lighting Technologies, Inc.(Æ) 78,999 495

 

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Small Cap Equity Fund 47

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)      
    Principal Fair         Principal   Fair  
  Amount ($) or Value       Amount ($) or   Value  
    Shares $         Shares   $  
Rightside Group, Ltd.(Æ) 13,700 164   Inteliquent, Inc.   79,874   1,641  
Rogers Corp.(Æ) 11,053 756   Intelsat SA(Æ)   64,400   148  
Rovi Corp.(Æ) 31,533 593   j2 Global, Inc.   86,693   5,795  
Rubicon Project, Inc. (The)(Æ) 49,525 699   MGE Energy, Inc.   1,254   70  
Rudolph Technologies, Inc.(Æ) 51,693 911   Middlesex Water Co.   17,175   710  
Sanmina Corp.(Æ) 64,371 1,631   New Jersey Resources Corp.   11,767   438  
ScanSource, Inc.(Æ) 20,344 835   Northwest Natural Gas Co.   62,031   4,028  
Science Applications International Corp. 70,300 4,271   NorthWestern Corp.   23,094   1,403  
Seachange International, Inc.(Æ) 80,600 258   NRG Yield, Inc. Class A   217,395   3,735  
Shopify, Inc. Class A(Æ) 74,535 2,554   ONE Gas, Inc.   18,800   1,221  
ShoreTel, Inc.(Æ) 172,714 1,268   Orbcomm, Inc.(Æ)   86,308   914  
Sigma Designs, Inc.(Æ) 82,986 556   PNM Resources, Inc.   88,500   3,041  
Silicom, Ltd. 11,443 415   Portland General Electric Co.   96,563   4,217  
Silicon Graphics International Corp.(Æ) 88,500 478   Pure Cycle Corp.(Å)(Æ)   221,800   1,020  
Silicon Motion Technology Corp. - ADR 15,530 803   SJW Corp.   21,990   932  
Silver Spring Networks, Inc.(Æ) 2,100 26   South Jersey Industries, Inc.   324,855   10,356  
Sonus Networks, Inc.(Æ) 110,937 956   Southwest Gas Corp.   1,582   123  
SPS Commerce, Inc.(Æ) 7,029 445   Spire, Inc.   7,700   534  
Super Micro Computer, Inc.(Æ) 22,032 475   Spok Holdings, Inc.   54,385   1,005  
SYNNEX Corp. 35,922 3,611   Telephone & Data Systems, Inc.   5,600   176  
Syntel, Inc.(Æ) 2,238 101   WGL Holdings, Inc.   25,708   1,820  
Tech Data Corp.(Æ) 18,300 1,426             63,160  
TechTarget, Inc.(Æ) 253,699 2,314                
TeleNav, Inc.(Æ) 61,776 308   Total Common Stocks            
TESSCO Technologies, Inc. 1,100 15   (cost $1,505,522)         1,728,510  
Tessera Technologies, Inc. 35,167 1,130                
Tremor Video, Inc.(Æ) 30,450 61 Short-Term Investments - 3.3%            
Tyler Technologies, Inc.(Æ) 16,181 2,638   Russell U.S. Cash Management Fund   53,449,444 (8) 53,449  
Ultimate Software Group, Inc.(Æ) 8,177 1,710   United States Treasury Bills            
Ultra Clean Holdings(Æ) 28,800 184   0.303% due 08/11/16 (§)(ç)   5,500   5,500  
Ultratech, Inc.(Æ) 80,966 1,979   Total Short-Term Investments            
Unisys Corp.(Æ) 158,840 1,574   (cost $58,949)         58,949  
USA Technologies, Inc.(Æ) 384,115 1,813                
Varonis Systems, Inc.(Æ) 55,184 1,418   Other Securities - 7.5%            
Verint Systems, Inc.(Æ) 23,500 829   Russell U.S. Cash Collateral Fund(×)   134,776,943 (8) 134,777  
Vocera Communications, Inc.(Æ) 89,307 1,321   Total Other Securities            
Xactly Corp.(Æ) 62,963 782   (cost $134,777)         134,777  
Xcerra Corp.(Æ) 317,720 1,938                
Zynga, Inc. Class A(Æ) 354,200 1,017   Total Investments 107.5%            
      287,489   (identified cost $1,699,248)         1,922,236  
 
Utilities - 3.5%         Other Assets and Liabilities, Net            
8x8, Inc.(Æ) 113,792 1,565 -(7.5%)       (134,342 )
ALLETE, Inc. 22,500 1,437   Net Assets - 100.0%         1,787,894  
American States Water Co. 96,031 4,149                
Artesian Resources Corp. Class A 18,436 628                
ATN International, Inc. 7,100 522                
Avista Corp. 27,654 1,203                
Black Hills Corp. 15,100 952                
Boingo Wireless, Inc.(Æ) 273,504 2,505                
California Resources Corp.(Æ) 10,400 107                
California Water Service Group 21,609 729                
Chesapeake Utilities Corp. 11,300 724                
Connecticut Water Service, Inc. 9,346 477                
Consolidated Water Co., Ltd. 72,302 971                
Earthstone Energy, Inc.(Æ) 66,609 669                
FairPoint Communications, Inc.(Æ) 51,515 834                
Hawaiian Telcom Holdco, Inc.(Æ) 5,200 115                
Idacorp, Inc. 22,395 1,811                
IDT Corp. Class B 28,485 435                

 

See accompanying notes which are an integral part of this quarterly report.

48 Russell U.S. Small Cap Equity Fund

 

Russell Investment Company
Russell U.S. Small Cap Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition   Amount ($)   Unit   (000 ) (000 )
Securities   Date   or shares   $   $   $  
0.3%                      
PDF Solutions, Inc.   12/04/15 233,725 14.13 3,302 3,856  
Pure Cycle Corp.   09/11/13 221,800 5.16 1,144 1,020  
                      4,876  

 

Futures Contracts
Amounts in thousands (except contract amounts)

                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
Russell 2000 Mini Index Futures 475 USD 57,808 09/16 2,822
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               2,822

 

Presentation of Portfolio Holdings                  
 
Amounts in thousands                      
 
          Fair Value            
                Practical    
Portfolio Summary   Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Consumer Discretionary   $ 235,658 $ — $ — $ — $ 235,658
Consumer Staples     67,446   —   —   —   67,446
Energy     54,023   —   —   —   54,023
Financial Services     438,143   —   —   —   438,143
Health Care     209,642   —   —   —   209,642
Materials and Processing     111,776   —   —   —   111,776
Producer Durables     261,173   —   —   —   261,173
Technology     287,489   —   —   —   287,489
Utilities     63,160   —   —   —   63,160
Short-Term Investments   — 5,500 — 53,449 58,949
Other Securities   — — — 134,777 134,777
Total Investments 1,728,510 5,500 — 188,226 1,922,236
 
 
Other Financial Instruments                      
Assets                      
Futures Contracts   $ 2,822 $ — $ — $ — $ 2,822
 
Total Other Financial Instruments*   $ 2,822 $ — $ — $ — $ 2,822

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

Russell U.S. Small Cap Equity Fund 49

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
      Amount ($)   Value       Amount ($)   Value
      or Shares   $       or Shares   $
Common Stocks - 92.4%           D'ieteren SA 15,880   696
Australia - 2.5%           Elia System Operator SA 4,164   222
Abacus Property Group(ö) 307,000   741 Groupe Bruxelles Lambert SA 14,356   1,210
AGL Energy, Ltd. 62,826   980 KBC Group NV 128,492   6,675
Aristocrat Leisure, Ltd. 160,600   1,948 Orange Belgium SA(Æ) 11,100   269
Astro Japan Property Group(ö) 44,100   233 UCB SA 84,692   6,620
ASX, Ltd. - ADR 48,900   1,843           39,345
Australia & New Zealand Banking                      
     Group, Ltd. - ADR 247,074   4,834 Bermuda - 0.2%          
Australian Property Systems, Ltd. Class           Brookfield Business Partners, LP 2,728   58
     A 18,400   113 XL Group, Ltd. 160,925   5,570
Aventus Retail Property Fund, Ltd.(ö) 318,122   576           5,628
Bendigo & Adelaide Bank, Ltd. 101,299   784            
BGP Holdings PLC(Å) 559,805   — Brazil - 0.3%          
BHP Billiton PLC 445,375   5,645 Ambev SA - ADR 325,844   1,883
BlueScope Steel, Ltd. 377,200   2,411 Embraer SA - ADR(Æ) 267,700   4,891
Charter Hall Group - ADR(ö) 16,500   70           6,774
CIMIC Group, Ltd. 78,996   1,741            
Commonwealth Bank of Australia - ADR 105,931   6,209 Canada - 3.9%          
CSL, Ltd. 18,300   1,644 Artis Real Estate Investment Trust(ö) 35,100   367
CSR, Ltd. 273,500   800 Bank of Montreal 148,419   9,515
Dexus Property Group(ö) 69,700   518 Bank of Nova Scotia (The) 138,300   7,024
Downer EDI, Ltd. 425,270   1,336 Barrick Gold Corp. 26,500   579
GDI Property Group(ö) 32,500   24 BCE, Inc. 29,400   1,408
Genworth Mortgage Insurance Australia,         Bird Construction, Inc. 71,850   741
     Ltd. 290,565   651 Brookfield Asset Management, Inc.          
GWA Group, Ltd. 292,800   467 Class A 136,400   4,713
IDP Education, Ltd.(Æ) 10,200   33 Canadian National Railway Co. 89,173   5,637
Iluka Resources, Ltd. 166,800   890 Canadian Natural Resources, Ltd. 195,600   5,923
JB Hi-Fi, Ltd. 142,870   2,820 Canadian Real Estate Investment          
National Australia Bank, Ltd. - ADR 149,568   3,026 Trust(ö) 64,700   2,480
Northern Star Resources, Ltd. 656,094   2,651 Canadian Tire Corp., Ltd. Class A 38,700   4,066
Orica, Ltd. 110,270   1,188 Capital Power Corp. 35,900   577
OZ Minerals, Ltd. 584,212   2,845 Celestica, Inc.(Æ) 13,800   153
Regis Resources, Ltd. 321,400   996 Centerra Gold, Inc. 128,900   760
Resolute Mining, Ltd. Class A(Æ) 549,100   704 Cominar Real Estate Investment Trust(ö) 17,400   238
Rio Tinto, Ltd. - ADR 77,545   2,971 Dollarama, Inc. 22,900   1,693
Sandfire Resources NL 382,579   1,672 Dominion Diamond Corp. 123,700   1,136
Southern Cross Media Group, Ltd. 91,200   88 Dream Office Real Estate Investment          
Star Entertainment Grp, Ltd. (The) 795,315   3,583 Trust(ö) 149,200   2,162
Telstra Corp., Ltd. 165,485   727 Element Financial Corp. 142,542   1,531
Wesfarmers, Ltd. 28,104   919 Emera, Inc. 5,344   199
Westfield Corp.(ö) 13,229   107 Empire Co., Ltd. Class A 40,692   648
Westpac Banking Corp. 97,723   2,317 Fairfax Financial Holdings, Ltd. 6,496   3,483
Whitehaven Coal, Ltd.(Æ) 46,800   60 Fortis, Inc. 14,100   467
Woodside Petroleum, Ltd. 156,100   3,158 George Weston, Ltd. 23,900   2,123
          64,323 Granite Real Estate Investment Trust(ö) 26,700   831
            H&R Real Estate Investment Trust(ö) 69,800   1,243
Austria - 0.4%           Hydro One, Ltd.(Þ) 94,426   1,875
CA Immobilien Anlagen AG(Æ) 43,057   808 Imperial Oil, Ltd. 14,800   455
Erste Group Bank AG(Æ) 317,231   8,391 Intact Financial Corp. 36,900   2,645
EVN AG 38,573   451 Intertape Polymer Group, Inc. 3,200   52
Kapsch TrafficCom AG 12,545   519 Loblaw Cos., Ltd. 33,960   1,894
          10,169 Magellan Aerospace Corp. 17,500   234
            Magna International, Inc. Class A 91,000   3,506
Belgium - 1.6%           Maple Leaf Foods, Inc. 33,500   763
Ageas 10,525   353 Medical Facilities Corp. 49,900   825
AGFA-Gevaert NV(Æ) 226,795   819 Morguard Corp. 4,200   550
Anheuser-Busch InBev SA 156,708   20,185 Morguard North American Residential          
Barco NV 6,435   495 Real Estate Investment Trust(ö) 21,000   212
Colruyt SA 32,312   1,801            

 

See accompanying notes which are an integral part of this quarterly report.

50 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Morguard Real Estate Investment           Dassault Systemes SA 24,436   2,016
     Trust(ö) 17,200   207 Engie SA 492,614   8,098
National Bank of Canada 7,400   253 Euler Hermes Group 811   67
Open Text Corp. 34,800   2,121 Eurazeo SA 23,718   1,515
Parex Resources, Inc.(Æ) 76,700   744 Faurecia 236,211   9,304
Power Corp. of Canada 49,700   1,083 FFP 6,547   495
Pure Industrial Real Estate Trust(ö) 37,700   158 GDF Suez(Å)(Æ) 55,671   —
Quebecor, Inc. Class B 110,772   3,412 Gecina SA(ö) 8,913   1,348
RioCan Real Estate Investment Trust(ö) 104,900   2,328 Hermes International 6,813   2,929
Rogers Sugar, Inc. 17,400   83 Kaufman & Broad SA - GDR 5,600   242
Royal Bank of Canada - GDR 91,400   5,572 Lectra 4,597   76
Sun Life Financial, Inc. 20,900   689 Legrand SA - ADR 40,700   2,245
Suncor Energy, Inc. 186,213   5,012 Linedata Services 940   42
Toronto Dominion Bank 108,628   4,733 L'Oreal SA 53,467   10,166
          99,103 LVMH Moet Hennessy Louis Vuitton        
                 SE - ADR 28,126   4,818
Chile - 0.4%           Natixis SA 743,694   3,058
Antofagasta PLC 1,687,884   11,258 Nexans SA(Æ) 16,030   808
            Orange SA - ADR 55,852   857
China - 0.8%           Pernod Ricard SA 53,180   6,076
Alibaba Group Holding, Ltd. - ADR(Æ) 67,480   5,566 Peugeot SA(Æ) 173,939   2,622
China Shenhua Energy Co., Ltd. Class H 1,561,000   2,997 Publicis Groupe SA - ADR 160,552   11,942
Lenovo Group, Ltd. 4,400,000   2,832 Renault SA 24,977   2,181
Tencent Holdings, Ltd. 328,700   7,898 Safran SA 80,545   5,467
Yangzijiang Shipbuilding Holdings, Ltd. 1,204,300   783 Sanofi - ADR 243,608   20,712
          20,076 Schneider Electric SE 270,456   17,664
 
Denmark - 1.4%           SCOR SE - ADR 66,740   1,947
Carlsberg A/S Class B 18,882   1,875 Societe Generale SA 84,822   2,891
Danske Bank A/S 701,988   19,040 Synergie SA 7,314   243
DFDS A/S 16,800   766 Technip SA 145,204   8,096
DSV A/S 161,117   7,161 Thales SA 38,980   3,548
ISS A/S 23,169   892 Total SA 338,472   16,270
Novo Nordisk A/S Class B 29,965   1,710 Vallourec SA(Æ) 1,426,964   5,186
Pandora A/S 33,832   4,395 Veolia Environnement SA 54,000   1,198
          35,839 Vinci SA 69,090   5,239
            Vivendi SA - ADR 202,109   3,969
Finland - 0.3%                   235,615
Fortum OYJ 8,602   143          
Kone OYJ Class B 98,702   4,995 Germany - 6.5%        
Sampo OYJ Class A 48,754   2,020 Aareal Bank AG 7,100   233
UPM-Kymmene OYJ 20,176   415 adidas AG 31,898   5,233
          7,573 Allianz SE 36,083   5,168
            AURELIUS Equity Opportunities SE &        
France - 9.3%                Co. KGaA 11,899   724
Air France-KLM(Æ) 24,400   142 Bayer AG 251,402   27,051
Air Liquide SA Class A 50,165   5,350 Bayerische Motoren Werke AG 12,486   1,076
Airbus Group SE 167,338   9,831 Beiersdorf AG 56,123   5,265
Altamir 47,315   539 Continental AG 36,170   7,582
Atos SE 5,667   555 Covestro AG(Þ) 46,725   2,183
AXA SA 148,998   3,031 Daimler AG 86,746   5,890
BNP Paribas SA 280,825   13,895 Deutsche Beteiligungs AG 22,786   721
Bourbon Corp. 7,680   91 Deutsche Boerse AG(Æ) 89,957   7,523
Bouygues SA - ADR 378,791   11,192 Deutsche Boerse AG 81,795   6,861
Bureau Veritas SA 69,467   1,508 Deutsche Lufthansa AG 275,481   3,273
Caisse Regionale de Credit Agricole           Deutsche Post AG 4,490   134
   Mutuel Nord de France 7,784   140 Deutsche Telekom AG 264,588   4,499
Casino Guichard Perrachon SA 30,965   1,676 Deutsche Wohnen AG 123,233   4,609
Cie de Saint-Gobain 224,890   9,529 Deutz AG 47,800   220
Credit Agricole SA 846,279   7,491 Fresenius SE & Co. KGaA 19,808   1,479
Danone SA 95,021   7,310 GEA Group AG 80,684   4,303

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 51

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
      Amount ($)   Value       Amount ($)   Value
      or Shares   $       or Shares   $
Gerresheimer AG - GDR 18,626   1,597 India - 0.2%          
HeidelbergCement AG 54,070   4,579 Housing Development Finance Corp.,          
Henkel AG & Co. KGaA 5,027   546 Ltd. 155,945   3,205
Infineon Technologies AG - ADR 328,063   5,432 Tata Consultancy Services, Ltd. 72,253   2,828
KION Group AG 14,120   774           6,033
Kloeckner & Co. SE(Æ) 191,924   2,574            
Linde AG 29,461   4,239 Ireland - 1.4%          
Merck KGaA 29,607   3,265 AerCap Holdings NV(Æ) 9,456   345
MTU Aero Engines AG 12,890   1,316 CRH PLC 439,089   13,366
Muenchener Rueckversicherungs-           Fly Leasing, Ltd. - ADR(Æ) 61,200   758
     Gesellschaft AG in Muenchen 10,947   1,825 Irish Residential Properties REIT PLC(ö) 514,991   651
OSRAM Licht AG 66,881   3,473 James Hardie Industries PLC 280,421   4,656
ProSiebenSat.1 Media SE 35,303   1,612 Jazz Pharmaceuticals PLC(Æ) 10,800   1,630
Rhoen Klinikum AG 58,643   1,727 Ryanair Holdings PLC - ADR(Æ) 54,045   3,825
Salzgitter AG 10,201   318 Willis Towers Watson PLC 84,322   10,424
SAP SE - ADR 90,244   7,903           35,655
Senvion SA(Æ) 2,545   32            
Siemens AG 136,212   14,788 Isle of Man - 0.0%          
Software AG 83,712   3,374 Playtech PLC 48,580   559
STADA Arzneimittel AG 8,990   485 Israel - 0.9%          
Talanx AG 113,867   3,424 Bank Hapoalim BM 453,487   2,308
Washtec AG 1,260   51 Bank Leumi Le-Israel BM(Æ) 105,208   379
Wuestenrot & Wuerttembergische AG 33,215   650 Check Point Software Technologies, Ltd.        
Zalando SE(Æ)(Þ) 171,332   6,492  (Æ) 29,072   2,235
          164,503 Israel Discount Bank, Ltd. Class A(Æ) 26,200   45
            Mobileye NV(Æ) 127,872   6,126
Hong Kong - 2.5%           Nice, Ltd. 18,562   1,282
AIA Group, Ltd. 2,296,169   14,270            
Champion REIT(ö) 1,262,000   729 Teva Pharmaceutical Industries, Ltd.          
Cheung Kong Infrastructure Holdings,           - ADR 195,300   10,449
Ltd. 284,000   2,516 Teva Pharmaceutical Industries, Ltd. 19,692   1,064
China Mobile, Ltd. 466,500   5,794           23,888
CLP Holdings, Ltd. 328,000   3,422 Italy - 2.5%          
Emperor Entertainment Hotel, Ltd. 210,000   49 A2A SpA 1,059,090   1,501
Global Brands Group Holding, Ltd.(Æ) 7,039,164   615 Assicurazioni Generali SpA 34,745   457
Great Eagle Holdings, Ltd. 75,000   339 Buzzi Unicem SpA 35,884   395
G-Resources Group, Ltd. 915,000   16 Davide Campari-Milano SpA 654,412   6,756
Guangdong Investment, Ltd. 2,931,600   4,506 Enel SpA 2,855,822   13,141
Guoco Group, Ltd. 7,000   80 ENI SpA - ADR 1,755,815   26,819
Hongkong Land Holdings, Ltd. 201,000   1,292 Immobiliare Grande Distribuzione SIIQ          
Hysan Development Co., Ltd. 275,000   1,267 SpA(ö) 889,660   775
Kerry Properties, Ltd. 373,500   1,021 Intesa Sanpaolo SpA 528,798   1,164
Lai Sun Development Co., Ltd.(Å) 22,275,000   402 Maire Tecnimont SpA 9,000   23
Li & Fung, Ltd. 2,633,164   1,321 Mediaset SpA 547,200   1,653
Link REIT(ö) 723,500   5,400 Parmalat SpA 260,793   686
Man Wah Holdings, Ltd. 788,000   575 Recordati SpA 22,170   718
MTR Corp., Ltd. 131,500   745 Snam Rete Gas SpA 551,507   3,190
New World Development Co., Ltd. 4,094,000   4,764 Telecom Italia SpA/Milano(Æ) 6,276,125   5,346
NewOcean Energy Holdings, Ltd. 848,000   252 Terna Rete Elettrica Nazionale SpA 54,729   298
Power Assets Holdings, Ltd. 397,500   3,898           62,922
Sunlight Real Estate Investment Trust(ö) 190,000   116            
Swire Properties, Ltd. 316,400   882 Japan - 16.4%          
United Laboratories International           Adastria Co., Ltd. 75,900   2,388
     Holdings, Ltd. (The)(Æ) 924,000   359 Alps Electric Co., Ltd. 203,600   4,556
WH Group, Ltd.(Þ) 5,348,500   4,224 Amada Holdings Co., Ltd. 69,400   755
Wharf Holdings, Ltd. (The) 157,000   1,085 Aozora Bank, Ltd. 691,000   2,534
Wheelock & Co., Ltd. 303,000   1,627 Arcs Co., Ltd. 13,300   343
Xinyi Glass Holdings, Ltd.(Æ) 926,000   709 Asatsu-DK, Inc. 20,800   486
          62,275 Astellas Pharma, Inc. 259,900   4,331
            Bandai Namco Holdings, Inc. 64,600   1,711

 

See accompanying notes which are an integral part of this quarterly report

52 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
BML, Inc. 15,700   753 Kubota Corp. 125,900   1,833
Canon Marketing Japan, Inc. 4,700   81 Kura Corp. 3,000   159
Canon, Inc. 320,200   9,072 Kyocera Corp.(Æ) 61,200   2,874
Cawachi, Ltd. 18,200   424 LaSalle Logiport REIT(ö) 609   636
Central Japan Railway Co. 24,900   4,632 Lion Corp. 74,000   1,122
Chubu Electric Power Co., Inc. 175,100   2,557 Mabuchi Motor Co., Ltd. 12,000   543
Citizen Holdings Co., Ltd. 45,100   242 Maeda Road Construction Co., Ltd. 16,000   303
Coca-Cola West Co., Ltd. 42,000   1,159 Marudai Food Co., Ltd. 18,000   86
COLOPL, Inc. 6,800   102 Marvelous, Inc. 9,400   72
CyberAgent, Inc. 3,400   192 Matsumotokiyoshi Holdings Co., Ltd. 5,500   243
Daicel Chemical Industries, Ltd. 10,300   115 Matsuya Foods Co., Ltd. 12,400   346
Daiho Corp.(Æ) 92,000   508 Mitsubishi Electric Corp.(Æ) 61,000   714
Dai-ichi Life Insurance Co., Ltd. (The) 476,625   6,189 Mitsubishi Tanabe Pharma Corp. 90,100   1,684
Daiichi Sankyo Co., Ltd. 60,600   1,442 Mitsubishi UFJ Financial Group, Inc. 2,914,600   14,827
Daikin Industries, Ltd. 60,700   5,270 Mitsui & Co., Ltd. 36,100   421
Denso Corp. 107,700   4,186 Mixi, Inc.(Æ) 52,700   1,910
Doutor Nichires Holdings Co., Ltd. 41,700   805 Mizuho Financial Group, Inc. 3,262,000   5,243
DTS Corp. 29,200   576 Mochida Pharmaceutical Co., Ltd. 4,000   305
East Japan Railway Co. 7,200   661 Nexon Co., Ltd. 63,900   952
Eisai Co., Ltd. 148,900   8,710 NH Foods, Ltd. 88,000   2,142
FamilyMart Co., Ltd. 13,900   821 Nidec Corp. 62,600   5,686
FANUC Corp.(Æ) 27,600   4,613 Nintendo Co., Ltd.(Æ) 19,600   4,049
Foster Electric Co., Ltd.(Æ) 29,500   567 Nippon Flour Mills Co., Ltd. 71,000   518
Fuji Electric Co., Ltd.(Æ) 2,357,000   10,383 Nippon Light Metal Holdings Co., Ltd. 44,200   100
Fuji Heavy Industries, Ltd. 57,300   2,203 Nippon Suisan Kaisha, Ltd. 497,200   2,458
Fuji Media Holdings, Inc. 30,100   358 Nippon Telegraph & Telephone Corp. 124,500   5,955
Fuji Soft, Inc. 28,800   714 Nippon Television Holdings, Inc. 11,600   194
FUJIFILM Holdings Corp. 73,500   2,642 Nippon Yusen KK 301,000   532
Fujitsu, Ltd. 3,979,000   16,507 Nissan Motor Co., Ltd.(Æ) 33,900   330
Fukuda Corp. 11,000   124 Nissin Electric Co., Ltd. 2,400   42
Furukawa Electric Co., Ltd. 85,000   222 Nitori Holdings Co., Ltd. 38,200   4,779
Geo Holdings Corp. 12,800   185 Nittetsu Mining Co., Ltd. 110,000   380
Goldcrest Co., Ltd. 46,900   738 NTT DOCOMO, Inc. 408,800   11,093
Gree, Inc. 149,800   765 Obayashi Corp. 59,600   652
Gunma Bank, Ltd. (The) 90,000   360 Oiles Corp. 17,600   313
Hakuhodo DY Holdings, Inc. 30,500   356 Okamura Corp. 40,400   418
Hazama Ando Corp. 400,200   2,470 Okinawa Cellular Telephone Co.(Å) 16,600   514
Heiwa Real Estate Co., Ltd. 18,200   239 Olympus Corp. 104,100   3,583
Hitachi, Ltd.(Æ) 1,479,000   6,759 Ono Pharmaceutical Co., Ltd. 321,200   11,519
Honda Motor Co., Ltd. 662,770   18,103 Open House Co., Ltd. 15,800   452
Hoya Corp.(Æ) 180,300   6,396 ORIX Corp. 149,700   2,094
IHI Corp. 3,298,000   9,193 Osaka Gas Co., Ltd. 963,000   3,878
Iida Group Holdings Co., Ltd. 233,000   4,629 Otsuka Holdings Co., Ltd. 44,700   2,120
Inpex Corp. 162,900   1,278 PanaHome Corp.(Æ) 32,000   253
Isuzu Motors, Ltd. 684,300   8,895 Penta-Ocean Construction Co., Ltd. 83,000   506
ITOCHU Corp. 840,100   9,500 Rengo Co., Ltd. 105,000   686
JAC Recruitment Co., Ltd. 20,000   229 Resona Holdings, Inc. 302,000   1,207
Japan Airlines Co., Ltd.(Æ) 4,500   139 Rohm Co., Ltd. 52,300   2,222
Japan Post Bank Co., Ltd. 422,500   5,157 Round One Corp. 149,100   1,011
Japan Post Holdings Co., Ltd. 270,200   3,556 Secom Co., Ltd. 8,200   616
Japan Tobacco, Inc. 104,200   4,068 Seino Holdings Co., Ltd. 32,300   329
Kamei Corp. 16,300   133 Shin-Etsu Chemical Co., Ltd. 24,800   1,693
Kao Corp. 81,700   4,404 Shinmaywa Industries, Ltd. 30,000   200
Kato Sangyo Co., Ltd. 1,000   24 Shinnihon Corp. 44,300   395
KDDI Corp. 41,400   1,261 Shionogi & Co., Ltd. 24,100   1,249
Keihanshin Building Co., Ltd.(Å) 142,300   710 Ship Healthcare Holdings, Inc. 5,200   157
Keyence Corp. 7,500   5,292 SMC Corp. 15,800   4,135
KNT-CT Holdings Co., Ltd.(Æ) 54,000   74 SoftBank Corp. 21,300   1,176
Kohnan Shoji Co., Ltd. 13,300   272 Sompo Japan Nipponkoa Holdings, Inc. 82,700   2,671
Kokuyo Co., Ltd. 54,500   802 Sony Corp. 468,600   15,539

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 53

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
      Amount ($)   Value       Amount ($)   Value
      or Shares   $       or Shares   $
Square Enix Holdings Co., Ltd. 28,200   880 ASM International NV 34,610   1,348
Studio Alice Co., Ltd. 15,500   348 ASML Holding NV 48,999   5,418
Sumitomo Corp. 707,900   7,404 BE Semiconductor Industries NV 7,030   209
Sumitomo Electric Industries, Ltd. 25,600   353 Delta Lloyd NV 663,375   2,365
Sumitomo Forestry Co., Ltd. 95,800   1,349 Eurocommercial Properties NV 930   41
Sumitomo Mitsui Financial Group, Inc. 542,200   17,298 Heineken NV 49,437   4,667
Sumitomo Mitsui Trust Holdings, Inc. 230,000   767 ING Groep NV 2,195,113   24,488
Sumitomo Osaka Cement Co., Ltd. 1,503,000   7,183 Koninklijke Ahold Delhaize NV 250,050   5,970
Takara Bio, Inc. 42,000   614 Koninklijke KPN NV 2,683,078   8,817
Takeda Pharmaceutical Co., Ltd. 17,500   779 Koninklijke Philips NV 346,334   9,231
Takuma Co., Ltd. 69,000   600 NN Group NV 192,937   5,198
Terumo Corp. 136,300   5,860 NXP Semiconductors NV(Æ) 89,778   7,549
TIS, Inc. 13,600   351 Philips Lighting NV(Æ)(Þ) 22,380   573
Toho Holdings Co., Ltd. 16,100   360 Randstad Holding NV 84,998   3,651
Tohoku Electric Power Co., Inc.(Æ) 259,500   3,326 Royal Dutch Shell PLC Class A 644,034   16,762
Token Corp. 7,900   659 Royal Dutch Shell PLC Class B 97,574   2,597
Tokuyama Corp.(Æ) 735,000   2,266 Wolters Kluwer NV 90,965   3,826
Tokyo Electric Power Co. Holdings, Inc.                     113,222
        (Æ) 772,200   3,022            
Tokyo Electron, Ltd. 24,900   2,168 Norway - 0.2%          
Tokyo Gas Co., Ltd. 155,000   656 Austevoll Seafood ASA 84,213   741
Tokyu Construction Co., Ltd. 222,400   2,333 DNB ASA 13,427   148
Toppan Forms Co., Ltd. 7,400   82 Norsk Hydro ASA 739,200   3,153
Toppan Printing Co., Ltd. 361,000   3,189 Norway Royal Salmon ASA 8,081   134
Torii Pharmaceutical Co., Ltd. 29,500   651 Salmar ASA Class A 15,350   479
Toshiba Plant Systems & Services Corp. 13,700   242 Telenor ASA 74,325   1,240
Toyo Engineering Corp. Class A 221,000   711 Yara International ASA 10,211   333
Toyota Motor Corp.(Æ) 203,400   11,321           6,228
Trend Micro, Inc.(Æ) 139,000   5,083            
Tv Tokyo Holdings Corp. 11,900   253 Portugal - 0.5%          
Ulvac, Inc. 82,800   2,558 Energias de Portugal SA 1,150,381   3,941
Usen Corp. 37,600   119 Galp Energia SGPS SA Class B 593,008   8,120
Yamaguchi Financial Group, Inc. 9,000   89           12,061
 
Yodogawa Steel Works, Ltd. 20,300   527 Russia - 0.3%          
Yuasa Trading Co., Ltd. 31,700   694 Evraz PLC(Æ) 291,767   661
          416,135 Gazprom PJSC - ADR 1,858,912   7,617
 
Jersey - 0.1%                     8,278
Centamin PLC 774,934   1,701 Singapore - 1.4%          
Highland Gold Mining, Ltd. 337,161   636 CapitaLand Commercial Trust, Ltd.(ö) 159,100   179
          2,337 China Aviation Oil Singapore Corp., Ltd. 178,100   194
 
Luxembourg - 0.2%           DBS Group Holdings, Ltd. 356,896   4,123
Aperam SA 49,750   2,082 Golden Agri-Resources, Ltd. 1,088,800   293
Millicom International Cellular SA 26,440   1,412 Indofood Agri Resources, Ltd. 70,200   24
Regus PLC 551,300   2,225 Jardine Cycle & Carriage, Ltd. 295,200   8,731
Stabilus SA(Æ) 2,636   138 Oversea-Chinese Banking Corp., Ltd. 88,300   570
          5,857 Singapore Telecommunications, Ltd. 462,554   1,453
            United Engineers, Ltd. 44,800   77
Macao - 0.3%           United Overseas Bank, Ltd. 677,200   9,254
Sands China, Ltd. 1,921,200   7,360 Venture Corp., Ltd. 119,300   791
            Wilmar International, Ltd. 3,610,100   8,354
Mexico - 0.2%           Wing Tai Holdings, Ltd. 152,900   199
Fomento Economico Mexicano SAB de           Yanlord Land Group, Ltd. 855,100   752
       CV - ADR 49,510   4,431           34,994
 
Netherlands - 4.5%           South Korea - 2.0%          
ABN AMRO Group NV(Þ) 17,079   317 Hana Financial Group, Inc. 275,385   6,724
Aegon NV 1,247,905   5,076 Hankook Tire Co., Ltd. 113,734   5,508
Akzo Nobel NV 67,748   4,390 NAVER Corp. 6,832   4,333
AMG Advanced Metallurgical Group NV 50,950   729 POSCO 46,750   9,479

 

See accompanying notes which are an integral part of this quarterly report.

54 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Samsung Electronics Co., Ltd. 13,475   18,530 Banque Cantonale Vaudoise 2,751   1,861
Shinhan Financial Group Co., Ltd. 206,537   7,398 Basellandschaftliche Kantonalbank 264   250
        51,972 Basler Kantonalbank 1,588   111
          Bell AG 419   165
Spain - 1.9%         Berner Kantonalbank AG 731   143
ACS Actividades de Construccion y         BKW AG 26,330   1,209
Servicios SA 78,798   2,260 Bobst Group SA 12,944   720
Aena SA(Þ) 18,909   2,724 Chubb, Ltd. 43,650   5,468
Amadeus IT Holding SA Class A 124,627   5,845 Cie Financiere Richemont SA 56,771   3,449
Banco de Sabadell SA - ADR 4,405,798   6,019 Coca-Cola HBC AG - ADR 66,930   1,382
Banco Santander SA - ADR 1,033,053   4,359 Credit Suisse Group AG 1,303,086   15,024
Cia de Distribucion Integral Logista         GAM Holding AG 270,721   2,974
Holdings SA 33,626   811 Georg Fischer AG 3,252   2,650
Corp. Financiera Alba SA 20,559   874 Glencore PLC(Æ) 534,400   1,334
Endesa SA - ADR 112,417   2,359 Graubuendner Kantonalbank 89   156
Gas Natural SDG SA 16,762   347 Helvetia Holding AG 8,749   4,393
Iberdrola SA 734,171   5,034 Julius Baer Group, Ltd. 169,305   6,946
Indra Sistemas SA(Æ) 297,500   3,601 Kuehne & Nagel International AG 8,791   1,233
Industria de Diseno Textil SA 221,509   7,652 Lonza Group AG 24,615   4,639
Mediaset Espana Comunicacion SA 285,326   3,274 Luzerner Kantonalbank AG(Æ) 638   273
Red Electrica Corp. SA 93,764   2,147 Metall Zug AG 241   709
Repsol SA - ADR 134,330   1,703 Nestle SA 389,544   31,227
        49,009 Novartis AG 312,063   25,833
          OC Oerlikon Corp. AG 247,230   2,312
Sweden - 1.6%         Oriflame Holding AG(Æ) 23,709   611
Assa Abloy AB Class B 386,215   8,472 PSP Swiss Property AG 6,770   682
Atlas Copco AB Class A 161,051   4,520 Roche Holding AG 153,424   39,185
Atlas Copco AB Class B 5,210   133 SFS Group AG 1,060   81
B&B Tools AB Class B 14,192   274 Sonova Holding AG 15,932   2,182
Boliden AB 164,010   3,605 St. Galler Kantonalbank AG 1,332   547
Cloetta AB B Shares Class B 50,500   184 STMicroelectronics NV 1,174,327   8,558
Coor Service Management Holding         Sunrise Communications Group AG(Þ) 8,830   571
AB(Þ) 16,269   94 Swiss Life Holding AG 33,881   7,741
Dios Fastigheter AB 93,051   734 Swiss Re AG 45,828   3,846
Electrolux AB 246,698   6,680 TE Connectivity, Ltd. 2,853   172
Fastighets AB Balder Class B(Æ) 90,117   2,462 UBS Group AG(Æ) 1,131,918   15,585
Granges AB 32,000   325 Ypsomed Holding AG 136   27
Hennes & Mauritz AB Class B 116,966   3,532 Zurich Insurance Group AG 25,012   6,009
Investor AB Class B 15,420   531         228,527
Inwido AB 3,220   40          
KappAhl AB 87,360   429 Taiwan - 0.6%        
Mycronic AB 6,600   77 Hon Hai Precision Industry Co., Ltd. 1,470,464   4,045
Nordea Bank AB 428,661   3,817 Taiwan Semiconductor Manufacturing        
Saab AB Class B 4,520   155       Co., Ltd. - ADR 265,849   7,385
Scandi Standard AB 45,027   339 Teco Electric and Machinery Co., Ltd. 4,377,900   3,879
Skandinaviska Enskilda Banken AB                 15,309
Class A 194,973   1,709          
Skanska AB Class B 77,242   1,641 Thailand - 0.4%        
Svenska Cellulosa AB SCA Class B 13,390   398 Bangkok Bank PCL 302,200   1,479
Swedish Match AB 7,250   264 Charoen Pokphand Foods PCL 10,537,900   8,449
Tethys Oil AB 65,155   431         9,928
Vitrolife AB 1,360   78          
        40,924 United Kingdom - 16.3%        
          3i Group PLC 758,076   6,183
Switzerland - 9.0%         Abcam PLC Class A 6,100   62
ABB, Ltd. 874,491   18,579 Amec Foster Wheeler PLC - GDR 439,999   2,619
ABB, Ltd. - ADR 135,200   2,873 ARM Holdings PLC 141,189   3,125
Actelion, Ltd. 33,196   5,886 Associated British Foods PLC 3,747   133
Adecco Group AG 8,637   474 AstraZeneca PLC 72,118   4,837
ALSO Holding AG 2,220   170 Auto Trader Group PLC(Þ) 103,215   506
Bachem Holding AG 3,524   287 Aviva PLC 1,396,582   7,219

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 55

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Barclays PLC 4,355,476   8,894 SVG Capital PLC(Æ)   101,219   737
Berendsen PLC 52,416   886 Taylor Wimpey PLC   1,024,193   2,094
Berkeley Group Holdings PLC 55,275   1,961 Tesco PLC(Æ)   828,553   1,708
BP PLC 3,363,980   19,082 Travis Perkins PLC   633,377   13,075
BP PLC - ADR 134,100   4,613 Trinity Mirror PLC   70,316   70
British American Tobacco PLC 185,855   11,862 Unilever NV   256,864   11,888
BT Group PLC 190,890   1,038 Unilever PLC   58,690   2,744
Cairn Energy PLC(Æ) 20,200   48 Vertu Motors PLC   235,546   150
Centrica PLC 133,000   425 Vodafone Group PLC   5,707,282   17,362
CMC Markets PLC(Þ) 185,661   683 Worldpay Group PLC(Þ)   869,422   3,375
CNH Industrial NV 1,322,003   9,422 WPP PLC   1,064,334   23,904
Compass Group PLC 484,386   9,202           414,213
Dairy Crest Group PLC 909,149   7,250            
Dart Group PLC 112,667   723 United States - 1.4%          
Delphi Automotive PLC 19,472   1,321 Carnival PLC   41,715   2,010
Derwent London PLC(ö) 34,249   1,287 Flextronics International, Ltd.(Æ)   81,544   1,033
Diageo PLC 226,182   6,466 News Corp. Class A   848,625   11,007
Dialog Semiconductor PLC(Æ) 30,631   1,003 Philip Morris International, Inc.   63,709   6,387
Direct Line Insurance Group PLC 405,925   1,880 Samsonite International SA   1,436,700   4,075
Drax Group PLC 103,800   469 Shire PLC - ADR   65,636   4,244
DS Smith PLC Class F 2,683,315   13,915 Sims Metal Management, Ltd.   230,400   1,479
Experian PLC 112,021   2,188 Yum! Brands, Inc.   58,684   5,247
Fiat Chrysler Automobiles NV(Æ) 1,723,400   11,076           35,482
GlaxoSmithKline PLC - ADR 1,216,744   27,171            
Great Portland Estates PLC(ö) 190,454   1,721 Total Common Stocks          
HSBC Holdings PLC 2,499,001   16,338 (cost $2,375,753)         2,347,805
IG Group Holdings PLC 224,430   2,626            
Imperial Tobacco Group PLC 587,412   30,957 Preferred Stocks - 0.5%          
Inchcape PLC 178,422   1,590 Germany - 0.5%          
Indivior PLC 568,898   2,228 Henkel AG & Co. KGaA   26,159   3,258
JD Sports Fashion PLC - ADR 46,194   768 Man SE   760   79
Jupiter Fund Management PLC 43,500   243 Volkswagen AG   67,928   9,554
Kingfisher PLC 1,493,200   6,636           12,891
Legal & General Group PLC 183,671   499            
Liberty Global PLC Class C(Æ) 1,695   52 Japan - 0.0%          
Liberty Global PLC LiLAC(Æ) 211   7 Shinkin Central Bank Class A   145   321
 
Lloyds Banking Group PLC 5,093,707   3,579 Sweden - 0.0%          
Moneysupermarket.com Group PLC 587,332   2,319 Fastighets AB Balder   4,272   168
National Grid PLC 822,164   11,794            
Novae Group PLC 28,081   302 Total Preferred Stocks          
Persimmon PLC Class A 54,713   1,220 (cost $12,904)         13,380
Premier Oil PLC(Æ) 1,443,488   1,211            
Prudential PLC 89,603   1,577 Short-Term Investments - 6.0%          
QinetiQ Group PLC 464,800   1,380 United States Investments - 6.0%          
Rank Group PLC 19,600   58 Russell U.S. Cash Management Fund   123,130,983 (8) 123,131
Reckitt Benckiser Group PLC 213,290   20,660 United States Treasury Bills          
Rightmove PLC 1,590   85            
Rio Tinto PLC 141,781   4,615       0.299% due 11/10/16 (§) 14,100   14,090
Rolls Royce Holdings PLC 881,428   9,221       0.368% due 01/05/17 (§) 15,000   14,978
Royal Bank of Scotland Group PLC(Æ) 3,550,267   9,027 Total Short-Term Investments          
RSA Insurance Group PLC 1,291,306   8,496 (cost $152,195)         152,199
Sage Group PLC (The) 121,800   1,148            
Sky PLC 936,844   11,408 Other Securities - 0.9%          
Smith & Nephew PLC 265,097   4,360 Russell U.S. Cash Collateral Fund(×)   22,322,827 (8) 22,323
Smiths Group PLC 105,955   1,769 Total Other Securities          
Soco International PLC 157,314   314 (cost $22,323)         22,323
Softcat PLC 62,400   287            
Spire Healthcare Group PLC(Þ) 11,000   47 Total Investments 99.8%          
Standard Chartered PLC(Æ) 1,017,025   8,135 (identified cost $2,563,175)         2,535,707
Subsea 7 SA(Æ) 269,498   2,880            

 

See accompanying notes which are an integral part of this quarterly report.

56 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)  
Principal Fair
Amount ($) Value
or Shares $
Other Assets and Liabilities, Net  
- 0.2% 5,242
Net Assets - 100.0% 2,540,949

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 57

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition   Amount ($)   Unit   (000 ) (000 )
Securities   Date   or shares   $   $   $  
0.1%                      
BGP Holdings PLC   08/06/09 EUR 559,805 — —   —  
GDF Suez   11/07/05 EUR 55,671 0.01 —   —  
Keihanshin Building Co., Ltd.   12/24/15 JPY 142,300 5.42 771 710  
Lai Sun Development Co., Ltd.   03/21/16 HKD 22,275,000 0.02 340 402  
Okinawa Cellular Telephone Co.   04/14/16 JPY 16,600 27.57 458 514  
                      1,626  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.                

 

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
CAC40 Euro Index Futures 275 EUR 12,209 08/16 260  
DAX Index Futures 51 EUR 13,166 09/16 481  
Euro STOXX 50 Index Futures 790 EUR 23,566 09/16 410  
FTSE 100 Index Futures 231 GBP 15,423 09/16 152  
Hang Seng Index Futures 35 HKD 38,105 08/16 (73 )
MSCI Emerging Markets Mini Index Futures 574 USD 25,299 09/16 2,087  
S&P/TSX 60 Index Futures 479 CAD 81,008 09/16 1,987  
SPI 200 Index Futures 384 AUD 52,982 09/16 2,295  
TOPIX Index Futures 1,101 JPY 14,626,785   09/16 1,853  
Short Positions                  
Euro STOXX 50 Index Futures 382 EUR 11,395 09/16 (83 )
FTSE 100 Index Futures 930 GBP 62,091 09/16 (7,659 )
Hang Seng Index Futures 307 HKD 334,231 08/16 550  
S&P 500 E-Mini Index Futures 756 USD 81,958 09/16 (2,266 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               (6 )

 

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD   112 AUD   150 09/21/16 3  
Bank of America USD   303 AUD   400 09/21/16 —  
Bank of America USD   749 AUD   1,000 09/21/16 9  
Bank of America USD   986 AUD   1,300 09/21/16 1  
Bank of America USD   1,480 AUD   2,000 09/21/16 37  
Bank of America USD   2,277 AUD   3,000 09/21/16 (1 )
Bank of America USD   3,313 AUD   4,500 09/21/16 101  
Bank of America USD   7 CAD   9 08/04/16 —  
Bank of America USD   14 CAD   19 08/04/16 —  
Bank of America USD   386 CAD   500 09/21/16 (3 )
Bank of America USD   1,518 CAD   2,000 09/21/16 15  
Bank of America USD   1,534 CAD   2,000 09/21/16 (2 )
Bank of America USD   1,546 CAD   2,000 09/21/16 (14 )
Bank of America USD   3,083 CAD   4,000 09/21/16 (18 )
Bank of America USD   3,124 CAD   4,000 09/21/16 (59 )
Bank of America USD   11,177 CAD   14,289 09/21/16 (230 )
Bank of America USD   6 CHF   6 08/03/16 —  
Bank of America USD   7 CHF   7 08/03/16 —  
Bank of America USD   11 CHF   10 08/03/16 —  
Bank of America USD   25 CHF   24 08/03/16 —  
Bank of America USD   26 CHF   26 08/03/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

58 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD   39 CHF 38 08/03/16 —  
Bank of America USD   51 CHF 49 08/03/16 —  
Bank of America USD   9 DKK 59 08/02/16 —  
Bank of America USD   6 EUR 6 08/02/16 —  
Bank of America USD   7 EUR 6 08/02/16 —  
Bank of America USD   8 EUR 7 08/02/16 —  
Bank of America USD   8 EUR 7 08/02/16 —  
Bank of America USD   9 EUR 8 08/02/16 —  
Bank of America USD   11 EUR 9 08/02/16 —  
Bank of America USD   11 EUR 9 08/02/16 —  
Bank of America USD   12 EUR 11 08/02/16 —  
Bank of America USD   15 EUR 14 08/02/16 —  
Bank of America USD   16 EUR 14 08/02/16 —  
Bank of America USD   17 EUR 15 08/02/16 —  
Bank of America USD   20 EUR 18 08/02/16 —  
Bank of America USD   21 EUR 18 08/02/16 —  
Bank of America USD   23 EUR 20 08/02/16 —  
Bank of America USD   25 EUR 22 08/02/16 —  
Bank of America USD   25 EUR 23 08/02/16 —  
Bank of America USD   26 EUR 24 08/02/16 —  
Bank of America USD   28 EUR 25 08/02/16 —  
Bank of America USD   30 EUR 27 08/02/16 —  
Bank of America USD   34 EUR 31 08/02/16 —  
Bank of America USD   42 EUR 38 08/02/16 —  
Bank of America USD   2,220 EUR 2,000 09/21/16 21  
Bank of America USD   2,226 EUR 2,000 09/21/16 15  
Bank of America USD   4,500 EUR 4,000 09/21/16 (19 )
Bank of America USD   5,104 EUR 4,500 09/21/16 (62 )
Bank of America USD   5,547 EUR 5,000 09/21/16 54  
Bank of America USD   12,202 EUR 10,703 09/21/16 (212 )
Bank of America USD   15,298 EUR 13,500 09/21/16 (174 )
Bank of America USD   16,687 EUR 15,000 09/21/16 118  
Bank of America USD   — GBP — 08/01/16 —  
Bank of America USD   625 GBP 475 08/01/16 4  
Bank of America USD   4 GBP 3 08/02/16 —  
Bank of America USD   8 GBP 6 08/02/16 —  
Bank of America USD   10 GBP 8 08/02/16 —  
Bank of America USD   10 GBP 8 08/02/16 —  
Bank of America USD   13 GBP 10 08/02/16 —  
Bank of America USD   16 GBP 12 08/02/16 —  
Bank of America USD   18 GBP 13 08/02/16 —  
Bank of America USD   21 GBP 16 08/02/16 —  
Bank of America USD   31 GBP 23 08/02/16 —  
Bank of America USD   40 GBP 30 08/02/16 —  
Bank of America USD   41 GBP 31 08/02/16 —  
Bank of America USD   255 GBP 193 08/02/16 —  
Bank of America USD   383 GBP 290 08/02/16 —  
Bank of America USD   518 GBP 390 08/02/16 (2 )
Bank of America USD   777 GBP 600 09/21/16 18  
Bank of America USD   1,322 GBP 1,000 09/21/16 5  
Bank of America USD   1,326 GBP 1,000 09/21/16 (2 )
Bank of America USD   5,700 GBP 4,000 09/21/16 (402 )
Bank of America USD   6,575 GBP 5,000 09/21/16 48  
Bank of America USD   12,928 GBP 8,800 09/21/16 (1,270 )
Bank of America USD   258 HKD 2,000 09/21/16 —  
Bank of America USD   516 HKD 4,000 09/21/16 —  
Bank of America USD   1,161 HKD 9,000 09/21/16 —  
Bank of America USD   1,290 HKD 10,000 09/21/16 —  
Bank of America USD   1,548 HKD 12,000 09/21/16 (1 )
Bank of America USD   3,225 HKD 25,000 09/21/16 (1 )
Bank of America USD   236 JPY 25,000 09/21/16 19  
Bank of America USD   594 JPY 60,000 09/21/16 (4 )
Bank of America USD   945 JPY 100,000 09/21/16 37  

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 59

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD   2,838 JPY 300,000 09/21/16 107  
Bank of America USD   2,850 JPY 300,000 09/21/16 96  
Bank of America USD   2,855 JPY 300,000 09/21/16 91  
Bank of America USD   2,929 JPY 300,000 09/21/16 17  
Bank of America USD   5,926 JPY 633,644 09/21/16 296  
Bank of America USD   7,561 JPY 800,000 09/21/16 294  
Bank of America USD   7,679 JPY 800,000 09/21/16 176  
Bank of America USD   18,830 JPY 2,013,556 09/21/16 941  
Bank of America USD   17 SEK 142 08/02/16 —  
Bank of America AUD   200 USD 150 09/21/16 (4 )
Bank of America AUD   200 USD 149 09/21/16 (3 )
Bank of America AUD   200 USD 150 09/21/16 (1 )
Bank of America AUD   300 USD 221 09/21/16 (6 )
Bank of America AUD   400 USD 304 09/21/16 —  
Bank of America AUD   600 USD 448 09/21/16 (7 )
Bank of America AUD   1,000 USD 738 09/21/16 (21 )
Bank of America AUD   1,600 USD 1,187 09/21/16 (27 )
Bank of America AUD   2,000 USD 1,467 09/21/16 (51 )
Bank of America CAD   200 USD 153 09/21/16 —  
Bank of America CAD   400 USD 305 09/21/16 (2 )
Bank of America CAD   400 USD 303 09/21/16 (4 )
Bank of America CAD   400 USD 312 09/21/16 6  
Bank of America CAD   500 USD 383 09/21/16 —  
Bank of America CAD   700 USD 531 09/21/16 (5 )
Bank of America CAD   1,000 USD 777 09/21/16 11  
Bank of America CAD   1,200 USD 939 09/21/16 20  
Bank of America CAD   2,000 USD 1,571 09/21/16 39  
Bank of America CAD   2,000 USD 1,558 09/21/16 26  
Bank of America CAD   2,500 USD 1,924 09/21/16 9  
Bank of America EUR   1,416 USD 1,580 08/02/16 (3 )
Bank of America EUR   500 USD 570 09/21/16 20  
Bank of America EUR   1,000 USD 1,101 09/21/16 (19 )
Bank of America EUR   1,000 USD 1,108 09/21/16 (12 )
Bank of America EUR   1,600 USD 1,793 09/21/16 1  
Bank of America EUR   2,000 USD 2,210 09/21/16 (31 )
Bank of America EUR   2,000 USD 2,264 09/21/16 23  
Bank of America EUR   3,000 USD 3,322 09/21/16 (39 )
Bank of America EUR   5,000 USD 5,562 09/21/16 (39 )
Bank of America EUR   7,000 USD 7,802 09/21/16 (41 )
Bank of America EUR   10,800 USD 12,248 09/21/16 148  
Bank of America EUR   18,674 USD 21,291 09/21/16 370  
Bank of America GBP   1 USD 1 08/01/16 —  
Bank of America GBP   27 USD 35 08/01/16 —  
Bank of America GBP   372 USD 489 08/01/16 (4 )
Bank of America GBP   402 USD 529 08/01/16 (3 )
Bank of America GBP   1,255 USD 1,651 08/01/16 (10 )
Bank of America GBP   99 USD 130 08/02/16 —  
Bank of America GBP   462 USD 611 08/02/16 —  
Bank of America GBP   575 USD 760 08/02/16 —  
Bank of America GBP   400 USD 530 09/21/16 —  
Bank of America GBP   400 USD 579 09/21/16 49  
Bank of America GBP   500 USD 718 09/21/16 56  
Bank of America GBP   600 USD 793 09/21/16 (2 )
Bank of America GBP   1,000 USD 1,314 09/21/16 (11 )
Bank of America GBP   1,000 USD 1,321 09/21/16 (4 )
Bank of America GBP   1,000 USD 1,314 09/21/16 (10 )
Bank of America GBP   1,200 USD 1,586 09/21/16 (3 )
Bank of America GBP   2,000 USD 2,705 09/21/16 56  
Bank of America GBP   7,800 USD 11,458 09/21/16 1,127  
Bank of America HKD   500 USD 65 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

60 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America HKD 1,000 USD 129 09/21/16 —  
Bank of America HKD 1,000 USD 129 09/21/16 —  
Bank of America HKD 1,800 USD 232 09/21/16 —  
Bank of America HKD 3,000 USD 387 09/21/16 —  
Bank of America HKD 6,000 USD 774 09/21/16 —  
Bank of America JPY 4,193 USD 40 08/01/16 (1 )
Bank of America JPY 40,000 USD 379 09/21/16 (14 )
Bank of America JPY 50,000 USD 481 09/21/16 (10 )
Bank of America JPY 50,000 USD 466 09/21/16 (25 )
Bank of America JPY 100,000 USD 952 09/21/16 (30 )
Bank of America JPY 100,000 USD 981 09/21/16 (1 )
Bank of America JPY 100,000 USD 975 09/21/16 (7 )
Bank of America JPY 100,000 USD 947 09/21/16 (35 )
Bank of America JPY 300,000 USD 2,833 09/21/16 (113 )
Bank of America JPY 500,000 USD 4,881 09/21/16 (29 )
Bank of Montreal AUD 300 USD 226 09/21/16 (1 )
Bank of Montreal CAD 300 USD 230 09/21/16 —  
Bank of Montreal EUR 1,000 USD 1,108 09/21/16 (12 )
Bank of Montreal GBP 1,000 USD 1,309 09/21/16 (16 )
Bank of Montreal GBP 1,000 USD 1,295 09/21/16 (29 )
Bank of Montreal HKD 2,000 USD 258 09/21/16 —  
Bank of New York AUD 5,000 USD 3,728 09/21/16 (65 )
Bank of New York CAD 6,500 USD 4,976 09/21/16 (4 )
Bank of New York EUR 21,000 USD 23,187 09/21/16 (339 )
Bank of New York GBP 6,300 USD 8,324 09/21/16 (21 )
Bank of New York HKD 16,000 USD 2,064 09/21/16 1  
Bank of New York JPY 1,200,000 USD 11,253 09/21/16 (530 )
BNP Paribas USD 1,495 AUD 2,000 09/21/16 22  
BNP Paribas USD 1,523 AUD 2,000 09/21/16 (5 )
BNP Paribas USD 1,558 CAD 2,000 09/21/16 (26 )
BNP Paribas USD 2,171 CAD 2,800 09/21/16 (26 )
BNP Paribas USD 11,178 CAD 14,289 09/21/16 (231 )
BNP Paribas USD 8,356 EUR 7,500 09/21/16 46  
BNP Paribas USD 12,202 EUR 10,703 09/21/16 (212 )
BNP Paribas USD 3,201 GBP 2,400 09/21/16 (22 )
BNP Paribas USD 903 HKD 7,000 09/21/16 —  
BNP Paribas USD 4,756 JPY 500,000 09/21/16 153  
BNP Paribas USD 5,921 JPY 633,644 09/21/16 301  
BNP Paribas USD 18,815 JPY 2,013,556 09/21/16 956  
BNP Paribas EUR 18,674 USD 21,290 09/21/16 369  
Brown Brothers Harriman AUD 2,300 USD 1,741 09/21/16 (4 )
Brown Brothers Harriman CAD 3,000 USD 2,354 09/21/16 56  
Brown Brothers Harriman EUR 700 USD 797 09/21/16 13  
Brown Brothers Harriman EUR 11,000 USD 12,552 09/21/16 229  
Brown Brothers Harriman GBP 200 USD 297 09/21/16 32  
Brown Brothers Harriman GBP 3,100 USD 4,596 09/21/16 489  
Brown Brothers Harriman HKD 7,000 USD 903 09/21/16 —  
Brown Brothers Harriman JPY 50,000 USD 474 09/21/16 (17 )
Brown Brothers Harriman JPY 525,000 USD 4,972 09/21/16 (183 )
Commonwealth Bank of Australia AUD 700 USD 523 09/21/16 (8 )
Commonwealth Bank of Australia CAD 900 USD 694 09/21/16 4  
Commonwealth Bank of Australia EUR 3,000 USD 3,347 09/21/16 (14 )
Commonwealth Bank of Australia GBP 1,000 USD 1,365 09/21/16 41  
Commonwealth Bank of Australia HKD 2,000 USD 258 09/21/16 —  
Commonwealth Bank of Australia JPY 100,000 USD 981 09/21/16 (1 )
HSBC USD 6,625 EUR 6,000 09/21/16 97  
HSBC USD 7,892 JPY 800,000 09/21/16 (37 )
HSBC AUD 2,000 USD 1,465 09/21/16 (52 )
HSBC AUD 4,000 USD 2,930 09/21/16 (105 )
HSBC CAD 3,000 USD 2,293 09/21/16 (5 )
HSBC CAD 4,000 USD 3,058 09/21/16 (7 )
HSBC JPY 500,000 USD 4,933 09/21/16 23  
National Australia Bank Limited USD 11,181 CAD 14,289 09/21/16 (234 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 61

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
National Australia Bank Limited USD 12,204 EUR 10,703 09/21/16 (214 )
National Australia Bank Limited USD 5,924 JPY 633,644 09/21/16 297  
National Australia Bank Limited USD 18,826 JPY 2,013,556 09/21/16 945  
National Australia Bank Limited EUR 18,674 USD 21,294 09/21/16 374  
Royal Bank of Canada USD 223 AUD 300 09/21/16 5  
Royal Bank of Canada USD 749 AUD 1,000 09/21/16 10  
Royal Bank of Canada USD 232 CAD 300 09/21/16 (2 )
Royal Bank of Canada USD 772 CAD 1,000 09/21/16 (6 )
Royal Bank of Canada USD 781 EUR 700 09/21/16 3  
Royal Bank of Canada USD 404 GBP 300 09/21/16 (7 )
Royal Bank of Canada USD 23,316 GBP 17,000 09/21/16 (797 )
Royal Bank of Canada USD 129 HKD 1,000 09/21/16 —  
Royal Bank of Canada USD 292 JPY 30,000 09/21/16 2  
Royal Bank of Canada USD 13,732 JPY 1,400,000 09/21/16 15  
Royal Bank of Canada AUD 300 USD 223 09/21/16 (5 )
Royal Bank of Canada CAD 2,000 USD 1,537 09/21/16 5  
Royal Bank of Canada GBP 16,000 USD 21,944 09/21/16 751  
Royal Bank of Canada HKD 11,000 USD 1,418 09/21/16 —  
Royal Bank of Canada JPY 1,700,000 USD 16,674 09/21/16 (18 )
Standard Chartered USD 3,708 AUD 5,000 09/21/16 86  
Standard Chartered USD 3,894 CAD 5,000 09/21/16 (63 )
Standard Chartered USD 11,176 CAD 14,289 09/21/16 (230 )
Standard Chartered USD 419 CHF 400 09/21/16 (5 )
Standard Chartered USD 12,203 EUR 10,703 09/21/16 (213 )
Standard Chartered USD 730 GBP 500 09/21/16 (67 )
Standard Chartered USD 2,107 JPY 220,000 09/21/16 53  
Standard Chartered USD 5,926 JPY 633,644 09/21/16 295  
Standard Chartered USD 18,832 JPY 2,013,556 09/21/16 938  
Standard Chartered USD 845 NOK 7,000 09/21/16 (15 )
Standard Chartered AUD 8,000 USD 5,933 09/21/16 (137 )
Standard Chartered CAD 8,000 USD 6,230 09/21/16 101  
Standard Chartered EUR 7,000 USD 7,973 09/21/16 131  
Standard Chartered EUR 18,674 USD 21,292 09/21/16 371  
Standard Chartered GBP 1,200 USD 1,751 09/21/16 161  
Standard Chartered HKD 45,000 USD 5,805 09/21/16 2  
Standard Chartered SEK 7,000 USD 851 09/21/16 31  
State Street USD 112 AUD 148 08/02/16 1  
State Street USD 149 AUD 200 09/21/16 2  
State Street USD 440 AUD 600 09/21/16 15  
State Street USD 2,664 AUD 3,500 09/21/16 (8 )
State Street USD 6,277 AUD 8,460 09/21/16 142  
State Street USD 31,013 AUD 41,800 09/21/16 704  
State Street USD 34,366 AUD 46,320 09/21/16 780  
State Street USD 114 CAD 150 08/02/16 1  
State Street USD 238 CAD 313 08/02/16 2  
State Street USD 110 CAD 144 08/03/16 1  
State Street USD 158 CAD 208 08/03/16 1  
State Street USD 762 CAD 1,000 09/21/16 4  
State Street USD 1,155 CAD 1,500 09/21/16 (6 )
State Street USD 1,177 CAD 1,500 09/21/16 (28 )
State Street USD 3,454 CAD 4,500 09/21/16 (7 )
State Street USD 10,354 CAD 13,251 09/21/16 (202 )
State Street USD 36,802 CAD 47,100 09/21/16 (718 )
State Street USD 41 CHF 40 08/02/16 —  
State Street USD 659 EUR 591 08/01/16 2  
State Street USD 16,638 EUR 15,000 09/21/16 167  
State Street USD 167 GBP 127 08/01/16 1  
State Street USD 290 GBP 221 08/01/16 2  
State Street USD 6,632 GBP 5,000 09/21/16 (9 )
State Street USD 20,258 GBP 13,930 09/21/16 (1,807 )
State Street USD 21,126 GBP 14,526 09/21/16 (1,884 )
State Street USD 1,548 HKD 12,000 09/21/16 (1 )
State Street USD 4,267 HKD 33,103 09/21/16 2  

 

See accompanying notes which are an integral part of this quarterly report.

62 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street USD 8,817 HKD 68,400 09/21/16 4  
State Street USD 216 JPY 22,267 08/02/16 2  
State Street USD 978 JPY 100,000 09/21/16 4  
State Street USD 980 JPY 100,000 09/21/16 2  
State Street USD 1,156 JPY 120,000 09/21/16 22  
State Street USD 1,465 JPY 150,000 09/21/16 8  
State Street USD 1,895 JPY 200,000 09/21/16 69  
State Street USD 1,954 JPY 200,000 09/21/16 10  
State Street USD 2,925 JPY 300,000 09/21/16 21  
State Street USD 7,647 JPY 800,000 09/21/16 208  
State Street USD 587 NOK 5,000 09/21/16 6  
State Street USD 12,674 SEK 102,800 09/21/16 (631 )
State Street AUD 200 USD 150 09/21/16 (2 )
State Street AUD 400 USD 300 09/21/16 (4 )
State Street AUD 500 USD 373 09/21/16 (6 )
State Street AUD 500 USD 371 09/21/16 (8 )
State Street CAD 200 USD 156 09/21/16 3  
State Street CAD 300 USD 230 09/21/16 —  
State Street CAD 600 USD 465 09/21/16 5  
State Street CAD 700 USD 531 09/21/16 (5 )
State Street CHF 810 USD 833 08/02/16 (3 )
State Street CHF 5,820 USD 6,044 09/21/16 23  
State Street EUR 96 USD 107 08/01/16 —  
State Street EUR 100 USD 112 09/21/16 —  
State Street EUR 100 USD 113 09/21/16 1  
State Street EUR 100 USD 110 09/21/16 (2 )
State Street EUR 100 USD 111 09/21/16 (1 )
State Street EUR 600 USD 665 09/21/16 (7 )
State Street EUR 2,000 USD 2,269 09/21/16 28  
State Street EUR 2,000 USD 2,232 09/21/16 (8 )
State Street EUR 2,000 USD 2,202 09/21/16 (39 )
State Street GBP 100 USD 147 09/21/16 15  
State Street GBP 200 USD 262 09/21/16 (3 )
State Street GBP 300 USD 387 09/21/16 (10 )
State Street GBP 600 USD 881 09/21/16 87  
State Street GBP 600 USD 797 09/21/16 2  
State Street GBP 1,000 USD 1,332 09/21/16 7  
State Street GBP 29,102 USD 42,323 09/21/16 3,774  
State Street HKD 530 USD 68 08/01/16 —  
State Street HKD 1,000 USD 129 09/21/16 —  
State Street HKD 2,000 USD 258 09/21/16 —  
State Street HKD 2,000 USD 258 09/21/16 —  
State Street HKD 8,000 USD 1,032 09/21/16 —  
State Street HKD 298,900 USD 38,531 09/21/16 (19 )
State Street JPY 28,879 USD 275 08/01/16 (8 )
State Street JPY 20,000 USD 199 09/21/16 3  
State Street JPY 40,000 USD 384 09/21/16 (9 )
State Street JPY 100,000 USD 958 09/21/16 (24 )
State Street JPY 100,000 USD 978 09/21/16 (4 )
State Street JPY 150,000 USD 1,449 09/21/16 (24 )
State Street JPY 300,000 USD 2,970 09/21/16 24  
State Street JPY 700,000 USD 6,837 09/21/16 (36 )
State Street JPY 5,436,000 USD 50,787 09/21/16 (2,589 )
State Street NOK 199,300 USD 24,502 09/21/16 878  
State Street SEK 1,878 USD 219 08/01/16 —  
UBS USD 11,168 CAD 14,289 09/21/16 (221 )
UBS USD 12,193 EUR 10,703 09/21/16 (203 )
UBS USD 5,922 JPY 633,644 09/21/16 299  
UBS USD 18,820 JPY 2,013,556 09/21/16 951  
UBS CAD 200 USD 157 09/21/16 4  
UBS EUR 1,000 USD 1,135 09/21/16 15  
UBS EUR 18,674 USD 21,275 09/21/16 354  
UBS GBP 500 USD 724 09/21/16 62  

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 63

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
UBS JPY 100,000 USD   937 09/21/16 (45 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts         4,941  

 

See accompanying notes which are an integral part of this quarterly report.

64 Russell International Developed Markets Fund

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
          Fair Value            
                Practical    
Portfolio Summary Level 1   Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Australia $ —   $ 63,433 $ 890 $ — $ 64,323
Austria   —     10,169   —   —   10,169
Belgium   —     39,345   —   —   39,345
Bermuda   5,628     —   —   —   5,628
Brazil   6,774     —   —   —   6,774
Canada   99,103     —   —   —   99,103
Chile   —     11,258   —   —   11,258
China   5,566     14,510   —   —   20,076
Denmark   —     35,839   —   —   35,839
Finland   —     7,573   —   —   7,573
France   —     235,615   —   —   235,615
Germany   7,523     156,980   —   —   164,503
Hong Kong   —     62,275   —   —   62,275
India   —     6,033   —   —   6,033
Ireland   16,982     18,673   —   —   35,655
Isle of Man   —     559   —   —   559
Israel   18,810     5,078   —   —   23,888
Italy   —     62,922   —   —   62,922
Japan   —     416,135   —   —   416,135
Jersey   —     2,337   —   —   2,337
Luxembourg   —     5,857   —   —   5,857
Macao   —     7,360   —   —   7,360
Mexico   4,431     —   —   —   4,431
Netherlands   8,122     105,100   —   —   113,222
Norway   —     6,228   —   —   6,228
Portugal   —     12,061   —   —   12,061
Russia   2,138     6,140   —   —   8,278
Singapore   —     34,994   —   —   34,994
South Korea   —     51,972   —   —   51,972
Spain   —     49,009   —   —   49,009
Sweden   —     40,924   —   —   40,924
Switzerland   8,513     220,014   —   —   228,527
Taiwan   7,385     7,924   —   —   15,309
Thailand   —     9,928   —   —   9,928
United Kingdom   8,098     406,115   —   —   414,213
United States   23,674     11,808   —   —   35,482
Preferred Stocks —   13,380 — — 13,380
Short-Term Investments —   29,068 — 123,131 152,199
Other Securities —   — — 22,323 22,323
Total Investments 222,747 2,166,616 890 145,454 2,535,707
 
 
Other Financial Instruments                      
Assets                      
Futures Contracts 10,075   — — — 10,075

 

See accompanying notes which are an integral part of this quarterly report.

Russell International Developed Markets Fund 65

 

Russell Investment Company
Russell International Developed Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                  Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Foreign Currency Exchange Contracts 16   20,594   — —   20,610  
Liabilities                            
Futures Contracts (10,081 ) —   — —   (10,081 )
Foreign Currency Exchange Contracts (35 ) (15,634 ) — —   (15,669 )
Total Other Financial Instruments* $ (25 ) $ 4,960   $ — $ — $   4,935  

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

Amounts in thousands      
  Fair Value  
Sector Exposure   $  
Consumer Discretionary 364,158
Consumer Staples 187,414
Energy 149,493
Financial Services 548,568
Health Care 246,518
Materials and Processing 185,163
Producer Durables 320,312
Technology 227,896
Utilities 131,663
Short-Term Investments 152,199
Other Securities 22,323
Total Investments 2,535,707

 

See accompanying notes which are an integral part of this quarterly report.

66 Russell International Developed Markets Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Common Stocks - 95.4%           Tencent Holdings, Ltd. 424,500   10,200
Australia - 0.5%                   32,538
AGL Energy, Ltd. 11,493   179          
BHP Billiton PLC - ADR 189,400   4,841 Denmark - 0.4%        
Caltex Australia, Ltd. 11,262   284 Genmab A/S(Æ) 9,534   1,724
Scentre Group(ö) 321,043   1,294 Pandora A/S 54,845   7,125
Telstra Corp., Ltd. 187,122   822         8,849
Washington H Soul Pattinson & Co., Ltd. 27,849   369          
Woodside Petroleum, Ltd. 34,039   689 Finland - 0.8%        
WorleyParsons, Ltd. 751,300   4,239 Caverion Corp. 189,245   1,248
          12,717 Kone OYJ Class B 131,846   6,673
            Konecranes OYJ 184,789   5,563
Austria - 0.1%           Neste OYJ 56,447   2,137
Andritz AG 65,905   3,357 Sampo OYJ Class A 33,772   1,399
            YIT OYJ 321,800   2,184
Belgium - 0.6%                   19,204
Ageas 8,512   286          
Groupe Bruxelles Lambert SA 5,535   467 France - 5.4%        
Solvay SA 61,495   6,373 BNP Paribas SA 640,942   31,714
UCB SA 89,822   7,021 Christian Dior SE 30,968   5,595
          14,147 Cie Generale des Etablissements        
                  Michelin Class B 65,500   6,687
Bermuda - 0.2%           Danone SA 223,397   17,185
Assured Guaranty, Ltd. 156,600   4,195 Engie SA 86,822   1,427
Axis Capital Holdings, Ltd. 8,300   461 Gecina SA(ö) 14,221   2,151
Endurance Specialty Holdings, Ltd. 3,400   230 Imerys SA 88,389   6,278
Hiscox, Ltd. 21,591   303 IPSOS 81,276   2,677
          5,189 Legrand SA - ADR 129,746   7,156
            LVMH Moet Hennessy Louis Vuitton        
Brazil - 0.9%                SE - ADR 74,509   12,764
BM&FBovespa SA - Bolsa de Valores           Mercialys SA(ö) 72,343   1,690
     Mercadorias e Futuros(Æ) 1,464,700   8,624 PPR SA 53,374   10,127
BR Malls Participacoes SA(Æ) 1,543,950   6,695 Renault SA 90,816   7,929
Itau Unibanco Holding SA - ADR 715,675   7,479 Sanofi - ADR 81,950   6,968
          22,798 Suez Environnement Co. 40,933   664
 
Canada - 1.4%           Total SA 182,048   8,751
Bank of Montreal 83,266   5,338 Veolia Environnement SA 111,777   2,480
BCE, Inc. 31,000   1,484         132,243
 
Brookfield Canada Office Properties(ö) 9,602   210 Germany - 4.4%        
Canadian Imperial Bank of Commerce 20,300   1,542 Allianz SE 130,564   18,699
Canadian National Railway Co. 185,332   11,715 BASF SE 64,552   5,071
Cominar Real Estate Investment Trust(ö) 31,854   436 Bayer AG 65,356   7,032
Emera, Inc. 23,600   880 Daimler AG 209,100   14,199
Enbridge, Inc. 13,314   548 Deutsche Lufthansa AG 220,273   2,618
Great-West Lifeco, Inc. 24,100   626 Deutsche Telekom AG 374,587   6,369
Imperial Oil, Ltd. 95,526   2,939 Freenet AG 162,700   4,538
Intact Financial Corp. 11,100   796 Hannover Rueck SE 59,475   6,078
Methanex Corp. 134,200   3,764 Lanxess AG 104,992   4,961
Royal Bank of Canada - GDR 12,700   774 Linde AG 84,458   12,153
Suncor Energy, Inc. 49,000   1,319 MAN SE 11,366   1,192
Toronto Dominion Bank 68,958   3,005 Muenchener Rueckversicherungs-        
          35,376 Gesellschaft AG in Muenchen 37,958   6,327
 
China - 1.3%           Rhoen Klinikum AG 32,162   947
Alibaba Group Holding, Ltd. - ADR(Æ) 126,714   10,451 STADA Arzneimittel AG 23,516   1,269
Baidu, Inc. - ADR(Æ) 44,230   7,059 Symrise AG 94,420   6,645
China Hongxing Sports, Ltd.(Å)(Æ) 6,320,000   — Wincor Nixdorf AG(Æ) 128,163   7,082
PICC Property & Casualty Co., Ltd.           Zalando SE(Æ)(Þ) 85,696   3,247
      Class H 3,106,000   4,828         108,427

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 67

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Hong Kong - 0.7%           Nippon Prologis, Inc.(ö) 126   315
AIA Group, Ltd. 919,600   5,715 NTT DOCOMO, Inc. 99,300   2,695
Cathay Pacific Airways, Ltd. 1,470,000   2,392 Ono Pharmaceutical Co., Ltd. 152,600   5,472
China Resources Power Holdings Co.,           Orix JREIT, Inc.(ö) 1,739   3,211
      Ltd. 1,399,900   2,216 Showa Denko KK 477,800   4,884
CLP Holdings, Ltd. 82,500   861 Sumitomo Mitsui Financial Group, Inc. 458,400   14,624
New World Development Co., Ltd. 1,760,000   2,048 Terumo Corp. 19,200   826
Power Assets Holdings, Ltd. 196,500   1,927 Tokyo Electric Power Co. Holdings, Inc.        
REXLot Holdings, Ltd.(Æ) 27,960,023   491       (Æ) 564,000   2,207
Wheelock & Co., Ltd. 392,000   2,104 Toyota Motor Corp.(Æ) 349,200   19,435
          17,754 United Urban Investment Corp.(ö) 422   789
                    123,462
India - 0.5%                    
Bharti Infratel, Ltd. 1,392,772   8,211 Mexico - 0.3%        
Infosys, Ltd. - ADR 295,800   4,860 Grupo Televisa SAB - ADR 266,700   7,086
          13,071          
            Netherlands - 1.3%        
Ireland - 2.3%           Akzo Nobel NV 97,131   6,294
Accenture PLC Class A 152,739   17,230 Heineken NV 97,532   9,207
AerCap Holdings NV(Æ) 126,597   4,622 Koninklijke Philips NV 275,507   7,343
Glanbia PLC 48,957   942 NN Group NV 94,368   2,543
Greencore Group PLC Class A 1,221,762   5,292 Royal Dutch Shell PLC Class A 183,388   4,776
Medtronic PLC 334,702   29,330 Royal Dutch Shell PLC Class B 69,334   1,845
          57,416         32,008
 
Israel - 0.6%           New Zealand - 0.2%        
Delek Energy Systems, Ltd.(Æ) 498   265 Mercury NZ, Ltd. 1,274,674   2,881
Mobileye NV(Æ) 196,009   9,391 Ryman Healthcare, Ltd. 203,485   1,402
Teva Pharmaceutical Industries, Ltd.                   4,283
      - ADR 90,600   4,847          
          14,503 Norway - 0.5%        
            DNB ASA 416,398   4,577
Italy - 0.4%           SpareBank 1 SR-Bank ASA 881,252   4,095
Enel SpA 1,062,698   4,890 Yara International ASA 145,300   4,736
ENI SpA - ADR 68,802   1,051         13,408
Parmalat SpA 236,380   621          
Snam Rete Gas SpA 161,453   934 Portugal - 0.2%        
Trevi Finanziaria Industriale SpA 1,489,405   1,951 Energias de Portugal SA 1,339,489   4,588
          9,447          
            Puerto Rico - 0.3%        
Japan - 5.0%           Popular, Inc. 197,400   6,650
Advance Residence Investment Corp.(ö) 560   1,561          
Aozora Bank, Ltd. 1,347,000   4,940 Russia - 0.1%        
Asahi Group Holdings, Ltd. 177,500   6,014 Sberbank of Russia PJSC - ADR 363,500   3,160
Canon, Inc. 38,800   1,099          
Chubu Electric Power Co., Inc. 99,800   1,458 Singapore - 0.5%        
Daiwa House Industry Co., Ltd. 24,200   678 Singapore Exchange, Ltd. 946,400   5,341
Daiwa Securities Group, Inc.(Æ) 2,143,000   12,054 United Overseas Bank, Ltd. 420,300   5,744
Eisai Co., Ltd. 90,900   5,317         11,085
 
FamilyMart Co., Ltd. 86,100   5,086 South Korea - 2.4%        
Honda Motor Co., Ltd. 253,900   6,935 BNK Financial Group, Inc. 262,703   2,068
Idemitsu Kosan Co., Ltd. 63,200   1,229 Hyundai Motor Co. 9,387   1,102
Japan Petroleum Exploration Co., Ltd. 11,000   227 Kia Motors Corp. 165,800   6,243
Japan Post Holdings Co., Ltd. 58,800   774 LG Household & Health Care, Ltd.(Æ) 9,371   8,435
Japan Retail Fund Investment Corp.(ö) 1,654   4,071 Samsung Electronics Co., Ltd. 27,822   38,260
Japan Tobacco, Inc. 49,300   1,925 Shinhan Financial Group Co., Ltd. 69,079   2,474
JX Holdings, Inc. 1,215,900   4,569         58,582
KDDI Corp. 216,800   6,603          
Mizuho Financial Group, Inc. 1,717,100   2,760 Spain - 0.3%        
Nagoya Railroad Co., Ltd. 286,000   1,609 Endesa SA - ADR 25,849   543
Nikon Corp. 6,700   95 Iberdrola SA 390,754   2,679

 

See accompanying notes which are an integral part of this quarterly report.

68 Russell Global Equity Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Red Electrica Corp. SA 169,996   3,892 Persimmon PLC Class A 297,534   6,635
        7,114 Reckitt Benckiser Group PLC 135,355   13,111
          Segro PLC(ö) 190,597   1,116
Sweden - 1.0%         Shaftesbury PLC(ö) 128,793   1,591
Atlas Copco AB Class B 101,300   2,590 Standard Chartered PLC(Æ) 533,242   4,265
Duni AB 260,200   3,618 Taylor Wimpey PLC 3,478,154   7,111
Investor AB Class B 183,329   6,312 Tesco PLC(Æ) 1,454,254   2,998
Loomis AB Class B 163,260   4,709 Unilever PLC 4,494   210
Meda AB Class A 99,386   1,854 Vodafone Group PLC 386,027   1,174
Nordea Bank AB 100,005   891         171,722
Svenska Handelsbanken AB Class A 436,287   5,248          
        25,222 United States - 49.1%        
          3M Co. 67,454   12,031
Switzerland - 5.3%         Abiomed, Inc.(Æ) 32,600   3,846
Allreal Holding AG 2,078   307 Aflac, Inc. 12,100   875
Basler Kantonalbank 7,914   552 Align Technology, Inc.(Æ) 70,077   6,247
Chubb, Ltd. 35,150   4,403 Allergan PLC(Æ) 43,185   10,924
Cie Financiere Richemont SA 259,227   15,749 ALLETE, Inc. 104,800   6,691
Credit Suisse Group AG 1,144,449   13,195 Alphabet, Inc. Class A(Æ) 25,816   20,429
Glencore PLC(Æ) 6,611,200   16,505 Alphabet, Inc. Class C(Æ) 18,661   14,346
Julius Baer Group, Ltd. 278,432   11,424 Altria Group, Inc. 48,400   3,277
Kuehne & Nagel International AG 33,460   4,692 Amazon.com, Inc.(Æ) 24,570   18,644
LafargeHolcim, Ltd. 299,475   14,251 Ameren Corp. 7,400   388
Luzerner Kantonalbank AG(Æ) 201   86 American Electric Power Co., Inc. 25,300   1,753
Nestle SA 219,021   17,557 American Financial Group, Inc. 5,600   409
Novartis AG 134,464   11,131 American International Group, Inc. 294,900   16,054
Roche Holding AG 57,293   14,628 American Tower Corp.(ö) 68,290   7,906
Sonova Holding AG 7,916   1,084 Ameris Bancorp 211,320   7,007
Swiss Prime Site AG Class A 10,112   929 Annaly Capital Management, Inc.(ö) 222,244   2,440
Swiss Re AG 44,721   3,753 Anthem, Inc. 127,792   16,784
        130,246 Apple, Inc. 200,554   20,900
          Applied Materials, Inc. 77,400   2,035
Taiwan - 0.9%         AT&T, Inc. 161,224   6,979
Taiwan Semiconductor Manufacturing         Athenahealth, Inc.(Æ) 52,494   6,708
      Co., Ltd. - ADR 773,800   21,496 Atmos Energy Corp. 6,200   495
 
Thailand - 0.5%         AvalonBay Communities, Inc.(ö) 406   75
Siam Commercial Bank PCL (The) 1,631,500   7,462 Avnet, Inc. 135,200   5,557
Thai Oil PCL 2,933,700   5,125 Bank of America Corp. 1,183,100   17,143
        12,587 Baxter International, Inc. 80,328   3,857
          Bed Bath & Beyond, Inc. 45,800   2,059
United Kingdom - 7.0%         Berkshire Hathaway, Inc. Class B(Æ) 41,476   5,984
Aon PLC 100,900   10,803 BlackRock, Inc. Class A 12,205   4,470
AstraZeneca PLC 123,989   8,316 Bristol-Myers Squibb Co. 201,083   15,043
Barclays PLC 6,353,399   12,974 Brookline Bancorp, Inc. 352,276   4,012
Barratt Developments PLC 1,075,260   6,217 Brown-Forman Corp. Class B - ADR 42,520   4,175
BBA Aviation PLC 1,554,688   4,896 Cabot Oil & Gas Corp. 308,300   7,606
Bellway PLC 223,088   6,182 CalAtlantic Group, Inc. 105,384   3,816
BP PLC 2,639,126   14,970 Campbell Soup Co. 1,197   75
British American Tobacco PLC 92,934   5,931 Capital One Financial Corp. 78,900   5,293
Bunzl PLC 6,005   188 Carter's, Inc. 57,000   5,771
CNH Industrial NV 1,990,800   14,188 Caterpillar, Inc. 100,100   8,284
Delphi Automotive PLC 155,700   10,560 Charter Communications, Inc. Class        
Diageo PLC 630,239   18,018       A(Æ) 29,526   6,935
Experian PLC 244,000   4,767 Chevron Corp. 63,220   6,479
GlaxoSmithKline PLC - ADR 60,901   1,360 Church & Dwight Co., Inc. 23,996   2,357
HSBC Holdings PLC 20,182   132 Cigna Corp. 108,256   13,961
Imperial Tobacco Group PLC 93,751   4,941 Cincinnati Financial Corp. 12,200   911
Just Eat PLC(Æ) 648,011   4,599 Cisco Systems, Inc. 22,900   699
Land Securities Group PLC(ö) 259,723   3,756 Citigroup, Inc. 434,000   19,014
National Grid PLC 49,708   713 Clorox Co. (The) 36,689   4,809

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 69

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
CMS Energy Corp. 8,400   380 Microsoft Corp. 656,832   37,229
Coca-Cola Co. (The) 57,500   2,509 Middleby Corp.(Æ) 72,388   8,714
Colgate-Palmolive Co. 60,016   4,467 Monster Beverage Corp.(Æ) 55,089   8,849
Comcast Corp. Class A 5,300   356 Mylan NV(Æ) 137,714   6,444
Consolidated Edison, Inc. 20,700   1,658 Netflix, Inc.(Æ) 83,725   7,640
Corning, Inc. 311,800   6,928 NextEra Energy, Inc. 75,300   9,660
CoStar Group, Inc.(Æ) 36,811   7,653 Nomad Foods, Ltd.(Æ) 549,503   4,863
Costco Wholesale Corp. 53,371   8,925 Occidental Petroleum Corp. 30,000   2,242
Crown Castle International Corp.(ö) 873   85 Omnicom Group, Inc. 41,494   3,415
Cummins, Inc. 73,300   8,999 Oracle Corp. 256,358   10,521
CVS Health Corp. 32,809   3,042 Panera Bread Co. Class A(Æ) 29,149   6,393
Danaher Corp. 60,158   4,899 PepsiCo, Inc. 51,173   5,574
DexCom, Inc.(Æ) 113,544   10,472 Pfizer, Inc. 427,241   15,761
Dime Community Bancshares, Inc. 246,600   4,266 PG&E Corp. 33,900   2,168
Dominion Resources, Inc. 6,800   531 Philip Morris International, Inc. 27,900   2,797
DR Horton, Inc. 576,900   18,968 Phillips 66 52,382   3,984
Dr Pepper Snapple Group, Inc. 10,800   1,064 Pioneer Natural Resources Co. 31,053   5,048
DTE Energy Co. 7,600   741 Platform Specialty Products Corp.(Æ) 468,108   4,307
Duke Energy Corp. 24,200   2,071 PPL Corp. 51,800   1,953
Edison International 22,300   1,726 Praxair, Inc. 76,584   8,925
Estee Lauder Cos., Inc. (The) Class A 11,826   1,099 Priceline Group, Inc. (The)(Æ) 4,966   6,708
Eversource Energy 10,400   608 ProAssurance Corp. 4,600   238
Exelon Corp. 25,945   967 Procter & Gamble Co. (The) 80,567   6,896
Expedia, Inc. 57,187   6,671 Progressive Corp. (The) 47,300   1,538
Exxon Mobil Corp. 111,827   9,947 Public Service Enterprise Group, Inc. 40,700   1,873
Facebook, Inc. Class A(Æ) 96,662   11,980 Public Storage(ö) 9,472   2,263
FairPoint Communications, Inc.(Æ) 130,248   2,109 Pure Storage, Inc. Class A(Æ) 7,786   98
FedEx Corp. 34,523   5,589 Quest Diagnostics, Inc. 80,300   6,935
Fortune Brands Home & Security, Inc. 116,554   7,374 Range Resources Corp. 353,900   14,266
Franklin Resources, Inc. 155,800   5,638 Raytheon Co. 14,400   2,009
Frontier Communications Corp. 1,006,300   5,233 Regal Entertainment Group Class A 138,585   3,260
General Dynamics Corp. 51,400   7,550 Regeneron Pharmaceuticals, Inc.(Æ) 15,556   6,613
General Electric Co. 243,485   7,582 Reynolds American, Inc. 49,600   2,483
General Motors Co. 435,300   13,729 Rite Aid Corp.(Æ) 100,800   706
Goldman Sachs Group, Inc. (The) 53,000   8,417 Samsonite International SA 2,763,300   7,837
Hartford Financial Services Group, Inc. 18,800   749 SCANA Corp. 9,100   682
Hewlett Packard Enterprise Co. 191,800   4,032 Schlumberger, Ltd. 41,926   3,376
Home Depot, Inc. (The) 24,100   3,332 ServiceNow, Inc.(Æ) 99,048   7,421
Honeywell International, Inc. 141,481   16,459 Southern Co. (The) 38,500   2,060
HP, Inc. 191,800   2,687 Southwest Bancorp, Inc. 172,800   3,356
Hyatt Hotels Corp. Class A(Æ) 24,300   1,226 SS&C Technologies Holdings, Inc. 275,326   8,871
Independent Bank Corp. 144,292   7,245 St. Jude Medical, Inc. 155,100   12,880
Intel Corp. 428,600   14,941 State Street Corp. 175,186   11,524
International Bancshares Corp. 201,918   5,537 SunTrust Banks, Inc. 59,000   2,495
International Business Machines Corp. 13,000   2,088 Synchrony Financial 75,278   2,099
International Game Technology PLC 336,316   7,029 Tesoro Corp. 30,121   2,294
JM Smucker Co. (The) 47,200   7,276 Thermo Fisher Scientific, Inc. 107,636   17,097
Johnson & Johnson 187,725   23,509 Thomson Reuters Corp. 29,000   1,221
JPMorgan Chase & Co. 653,534   41,807 Tiffany & Co. 43,739   2,822
Kimberly-Clark Corp. 4,300   557 Time Warner, Inc. 166,896   12,793
Lennar Corp. Class A 222,800   10,427 Travelers Cos., Inc. (The) 15,500   1,801
Lockheed Martin Corp. 9,700   2,451 Tyson Foods, Inc. Class A 1,128   83
Marathon Petroleum Corp. 109,200   4,301 United Parcel Service, Inc. Class B 116,874   12,634
MasterCard, Inc. Class A 17,500   1,667 United Technologies Corp. 6,182   666
McCormick & Co., Inc. 4,024   411 UnitedHealth Group, Inc. 154,500   22,124
McDonald's Corp. 17,800   2,094 Valero Energy Corp. 25,583   1,337
McKesson Corp. 29,277   5,696 Veeva Systems, Inc. Class A(Æ) 154,731   5,878
Merck & Co., Inc. 327,700   19,223 Verizon Communications, Inc. 136,234   7,549
Meritage Homes Corp.(Æ) 85,100   3,097 Visa, Inc. Class A 311,281   24,295
MetLife, Inc. 128,400   5,488 Walgreens Boots Alliance, Inc. 2,600   206

 

See accompanying notes which are an integral part of this quarterly report.

70 Russell Global Equity Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

  Amounts in thousands (except share amounts)      
            Principal   Fair  
          Amount ($)   Value  
          or Shares   $  
  Wal-Mart Stores, Inc.     41,800   3,050  
  Walt Disney Co. (The)     152,714   14,653  
  Waters Corp.(Æ)     65,292   10,377  
  Wayfair, Inc. Class A(Æ)     134,281   5,841  
  Web.com Group, Inc.(Æ)     322,000   6,073  
  Webster Financial Corp.     159,300   5,728  
  WEC Energy Group, Inc.     14,100   915  
  Wells Fargo & Co.     324,400   15,561  
  WESCO International, Inc.(Æ)     127,200   7,090  
  Western Union Co. (The)     302,200   6,044  
  Workday, Inc. Class A(Æ)     135,139   11,262  
  Xcel Energy, Inc.     25,700   1,130  
  Xerox Corp.     503,600   5,187  
  Zillow Group, Inc. Class A(Æ)     8,736   344  
  Zimmer Biomet Holdings, Inc.     114,523   15,019  
                1,209,163  
 
  Total Common Stocks                
  (cost $1,940,439)             2,348,898  
 
  Preferred Stocks - 0.0%                
  Germany - 0.0%                
  Man SE     718   75  
 
  Total Preferred Stocks                
  (cost $75)             75  
 
Short-Term Investments - 4.3%                
  United States - 4.3%                
  Russell U.S. Cash Management Fund     86,568,847 (8) 86,569  
  United States Treasury Bills                
  0.300% due 11/10/16 (§)(ç)     6,400   6,395  
  0.370% due 01/05/17 (§)(ç)     13,300   13,280  
  Total Short-Term Investments                
  (cost $106,243)             106,244  
 
  Other Securities - 1.6%                
  Russell U.S. Cash Collateral Fund(×)     39,849,966 (8) 39,850  
  Total Other Securities                
  (cost $39,850)             39,850  
 
  Total Investments 101.3%                
  (identified cost $2,086,607)             2,495,067  
 
  Other Assets and Liabilities, Net                
-(1.3%)           (32,318 )
  Net Assets - 100.0%             2,462,749  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 71

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
          Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities   Date     or shares   $   $   $  
0.0%                      
China Hongxing Sports, Ltd.   08/27/10 SGD 6,320,000 — 764 —  
                      —  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.              

 

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
CAC40 Euro Index Futures 51 EUR 2,264 08/16 75  
DAX Index Futures 9 EUR 2,323 09/16 174  
Euro STOXX 50 Index Futures 50 EUR 1,492 09/16 75  
FTSE 100 Index Futures 30 GBP 2,003 09/16 207  
Hang Seng Index Futures 5 HKD 5,444 08/16 (11 )
OMXS 30 Index Futures 37 SEK 5,126 08/16 15  
S&P 500 E-Mini Index Futures 268 USD 29,054 09/16 957  
S&P Mid 400 E-Mini Index Futures 12 USD 1,868 09/16 69  
S&P/TSX 60 Index Futures 11 CAD 1,860 09/16 51  
SPI 200 Index Futures 12 AUD 1,656 09/16 77  
TOPIX Index Futures 1,002 JPY 13,311,570   09/16 1,374  
Short Positions                  
Euro STOXX 50 Index Futures 559 EUR 16,675 09/16 (441 )
FTSE 100 Index Futures 765 GBP 51,075 09/16 (6,563 )
Hang Seng Index Futures 213 HKD 231,893 08/16 381  
MSCI Emerging Markets Mini Index Futures 280 USD 12,341 09/16 (979 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               (4,539 )

 

Foreign Currency Exchange Contracts                      
Amounts in  thousands                      
                    Unrealized  
                    Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD   304 AUD   400 09/21/16 —  
Bank of America USD   369 AUD   500 09/21/16 11  
Bank of America USD   1,325 AUD   1,800 09/21/16 41  
Bank of America USD   385 CAD   500 09/21/16 (2 )
Bank of America USD   1,171 CAD   1,500 09/21/16 (22 )
Bank of America USD   1,040 CHF   1,000 09/21/16 (6 )
Bank of America USD   201 EUR   180 08/02/16 —  
Bank of America USD   255 EUR   228 08/02/16 1  
Bank of America USD   221 EUR   200 09/21/16 3  
Bank of America USD   1,125 EUR   1,000 09/21/16 (5 )
Bank of America USD   1,446 EUR   1,300 09/21/16 10  
Bank of America USD   4,063 EUR   3,564 09/21/16 (71 )
Bank of America USD   5,326 EUR   4,700 09/21/16 (61 )
Bank of America USD   10,208 EUR   9,000 09/21/16 (125 )
Bank of America USD   2,063 GBP   1,570 08/01/16 15  
Bank of America USD   2,351 GBP   1,787 08/01/16 14  
Bank of America USD   159 GBP   120 09/21/16 —  
Bank of America USD   263 GBP   200 09/21/16 2  
Bank of America USD   571 GBP   400 09/21/16 (41 )
Bank of America USD   657 GBP   500 09/21/16 5  
Bank of America USD   676 GBP   500 09/21/16 (14 )

 

See accompanying notes which are an integral part of this quarterly report.

72 Russell Global Equity Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD   724 GBP 500 09/21/16 (61 )
Bank of America USD   1,995 GBP 1,400 09/21/16 (141 )
Bank of America USD   12,634 GBP 8,600 09/21/16 (1,243 )
Bank of America USD   129 HKD 1,000 09/21/16 —  
Bank of America USD   155 HKD 1,200 09/21/16 —  
Bank of America USD   387 HKD 3,000 09/21/16 —  
Bank of America USD   516 HKD 4,000 09/21/16 —  
Bank of America USD   645 HKD 5,000 09/21/16 —  
Bank of America USD   1,290 HKD 10,000 09/21/16 —  
Bank of America USD   29 JPY 3,063 08/01/16 1  
Bank of America USD   193 JPY 20,377 08/01/16 7  
Bank of America USD   156 JPY 16,355 08/02/16 4  
Bank of America USD   236 JPY 25,000 09/21/16 19  
Bank of America USD   672 JPY 70,000 09/21/16 15  
Bank of America USD   945 JPY 100,000 09/21/16 37  
Bank of America USD   952 JPY 100,000 09/21/16 30  
Bank of America USD   1,560 JPY 160,000 09/21/16 11  
Bank of America USD   2,179 JPY 233,034 09/21/16 109  
Bank of America USD   2,194 JPY 220,000 09/21/16 (34 )
Bank of America USD   2,365 JPY 250,000 09/21/16 89  
Bank of America USD   2,646 JPY 280,000 09/21/16 103  
Bank of America USD   3,417 JPY 350,000 09/21/16 20  
Bank of America USD   20,645 JPY 2,207,659 09/21/16 1,031  
Bank of America USD   83 SEK 700 09/21/16 (1 )
Bank of America USD   243 SEK 2,000 09/21/16 (9 )
Bank of America AUD   100 USD 75 09/21/16 (1 )
Bank of America AUD   100 USD 73 09/21/16 (3 )
Bank of America AUD   100 USD 76 09/21/16 —  
Bank of America AUD   150 USD 114 09/21/16 —  
Bank of America AUD   200 USD 149 09/21/16 (3 )
Bank of America AUD   200 USD 149 09/21/16 (2 )
Bank of America AUD   900 USD 668 09/21/16 (15 )
Bank of America CAD   100 USD 76 09/21/16 —  
Bank of America CAD   100 USD 76 09/21/16 —  
Bank of America CAD   100 USD 78 09/21/16 1  
Bank of America CAD   100 USD 76 09/21/16 (1 )
Bank of America CAD   100 USD 77 09/21/16 —  
Bank of America CAD   100 USD 77 09/21/16 1  
Bank of America CAD   170 USD 130 09/21/16 —  
Bank of America CAD   200 USD 151 09/21/16 (2 )
Bank of America CAD   300 USD 235 09/21/16 5  
Bank of America CAD   300 USD 228 09/21/16 (2 )
Bank of America CAD   400 USD 314 09/21/16 8  
Bank of America CAD   1,000 USD 770 09/21/16 4  
Bank of America CHF   300 USD 305 08/02/16 (4 )
Bank of America CHF   190 USD 195 08/03/16 —  
Bank of America CHF   3,000 USD 3,059 09/21/16 (45 )
Bank of America DKK   2,000 USD 299 09/21/16 (2 )
Bank of America EUR   22 USD 25 08/02/16 —  
Bank of America EUR   49 USD 54 08/02/16 —  
Bank of America EUR   138 USD 154 08/02/16 —  
Bank of America EUR   180 USD 199 09/21/16 (3 )
Bank of America EUR   200 USD 221 09/21/16 (3 )
Bank of America EUR   300 USD 333 09/21/16 (3 )
Bank of America EUR   300 USD 342 09/21/16 6  
Bank of America EUR   300 USD 330 09/21/16 (6 )
Bank of America EUR   300 USD 330 09/21/16 (6 )
Bank of America EUR   500 USD 551 09/21/16 (9 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 73

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America EUR 800 USD   897 09/21/16 —  
Bank of America EUR 1,000 USD   1,107 09/21/16 (13 )
Bank of America EUR 1,000 USD   1,140 09/21/16 20  
Bank of America EUR 3,000 USD   3,337 09/21/16 (24 )
Bank of America EUR 3,200 USD   3,566 09/21/16 (19 )
Bank of America EUR 10,500 USD   11,908 09/21/16 144  
Bank of America EUR 12,770 USD   14,559 09/21/16 253  
Bank of America GBP 48 USD   64 08/02/16 —  
Bank of America GBP 100 USD   132 09/21/16 —  
Bank of America GBP 100 USD   133 09/21/16 —  
Bank of America GBP 100 USD   146 09/21/16 13  
Bank of America GBP 100 USD   132 09/21/16 —  
Bank of America GBP 120 USD   158 09/21/16 (1 )
Bank of America GBP 120 USD   158 09/21/16 (1 )
Bank of America GBP 150 USD   199 09/21/16 —  
Bank of America GBP 300 USD   434 09/21/16 37  
Bank of America GBP 300 USD   394 09/21/16 (3 )
Bank of America GBP 400 USD   528 09/21/16 (2 )
Bank of America GBP 800 USD   1,141 09/21/16 82  
Bank of America GBP 1,100 USD   1,488 09/21/16 31  
Bank of America GBP 6,700 USD   9,842 09/21/16 967  
Bank of America GBP 7,394 USD   10,789 09/21/16 995  
Bank of America HKD 468 USD   60 08/01/16 —  
Bank of America HKD 290 USD   37 08/02/16 —  
Bank of America HKD 349 USD   45 08/02/16 —  
Bank of America HKD 623 USD   80 08/02/16 —  
Bank of America HKD 500 USD   64 09/21/16 —  
Bank of America HKD 800 USD   103 09/21/16 —  
Bank of America HKD 1,000 USD   129 09/21/16 —  
Bank of America HKD 1,500 USD   193 09/21/16 —  
Bank of America HKD 3,000 USD   387 09/21/16 —  
Bank of America JPY 4,164 USD   40 08/03/16 (1 )
Bank of America JPY 10,000 USD   94 09/21/16 (4 )
Bank of America JPY 10,000 USD   94 09/21/16 (4 )
Bank of America JPY 10,000 USD   95 09/21/16 (3 )
Bank of America JPY 20,000 USD   195 09/21/16 (1 )
Bank of America JPY 20,000 USD   187 09/21/16 (9 )
Bank of America JPY 30,000 USD   295 09/21/16 1  
Bank of America JPY 30,000 USD   284 09/21/16 (10 )
Bank of America JPY 30,000 USD   285 09/21/16 (9 )
Bank of America JPY 40,000 USD   373 09/21/16 (20 )
Bank of America JPY 40,000 USD   374 09/21/16 (19 )
Bank of America JPY 40,000 USD   393 09/21/16 —  
Bank of America JPY 100,000 USD   940 09/21/16 (42 )
Bank of America JPY 200,000 USD   1,952 09/21/16 (11 )
Bank of America JPY 200,000 USD   1,883 09/21/16 (80 )
Bank of America SEK 100 USD   12 09/21/16 —  
Bank of America SEK 1,000 USD   116 09/21/16 (1 )
Bank of America SEK 1,600 USD   189 09/21/16 2  
Bank of America SGD 55 USD   41 08/03/16 —  
Bank of Montreal AUD 100 USD   75 09/21/16 —  
Bank of Montreal AUD 300 USD   225 09/21/16 (3 )
Bank of Montreal CAD 400 USD   307 09/21/16 1  
Bank of Montreal EUR 400 USD   443 09/21/16 (5 )
Bank of Montreal EUR 1,000 USD   1,104 09/21/16 (16 )
Bank of Montreal GBP 200 USD   259 09/21/16 (6 )
Bank of Montreal GBP 400 USD   524 09/21/16 (6 )
Bank of Montreal HKD 1,000 USD   129 09/21/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

74 Russell Global Equity Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of Montreal JPY 10,000 USD 100 09/21/16 2  
Bank of Montreal JPY 60,000 USD 567 09/21/16 (23 )
Bank of Montreal SEK 700 USD 81 09/21/16 (1 )
BNP Paribas USD 4,063 EUR 3,564 09/21/16 (70 )
BNP Paribas USD 293 JPY 30,000 09/21/16 1  
BNP Paribas USD 2,178 JPY 233,034 09/21/16 111  
BNP Paribas USD 20,629 JPY 2,207,659 09/21/16 1,048  
BNP Paribas EUR 12,770 USD 14,559 09/21/16 252  
BNP Paribas GBP 7,394 USD 10,796 09/21/16 1,002  
BNP Paribas JPY 60,000 USD 571 09/21/16 (18 )
BNP Paribas JPY 300,000 USD 2,878 09/21/16 (68 )
Brown Brothers Harriman USD 223 EUR 200 09/21/16 1  
Brown Brothers Harriman USD 790 GBP 600 09/21/16 4  
Brown Brothers Harriman AUD 100 USD 76 09/21/16 —  
Brown Brothers Harriman AUD 950 USD 719 09/21/16 (2 )
Brown Brothers Harriman CAD 100 USD 78 09/21/16 2  
Brown Brothers Harriman CAD 1,300 USD 1,020 09/21/16 24  
Brown Brothers Harriman EUR 100 USD 111 09/21/16 (1 )
Brown Brothers Harriman EUR 200 USD 228 09/21/16 4  
Brown Brothers Harriman EUR 4,600 USD 5,249 09/21/16 96  
Brown Brothers Harriman GBP 100 USD 148 09/21/16 16  
Brown Brothers Harriman GBP 600 USD 774 09/21/16 (21 )
Brown Brothers Harriman GBP 1,400 USD 2,076 09/21/16 222  
Brown Brothers Harriman HKD 1,000 USD 129 09/21/16 —  
Brown Brothers Harriman HKD 2,500 USD 323 09/21/16 —  
Brown Brothers Harriman JPY 50,000 USD 498 09/21/16 7  
Brown Brothers Harriman JPY 260,000 USD 2,462 09/21/16 (91 )
Brown Brothers Harriman SEK 3,000 USD 369 09/21/16 17  
Commonwealth Bank of Australia USD 221 AUD 300 09/21/16 6  
Commonwealth Bank of Australia USD 267 GBP 200 09/21/16 (2 )
Commonwealth Bank of Australia USD 258 HKD 2,000 09/21/16 —  
Commonwealth Bank of Australia AUD 100 USD 74 09/21/16 (2 )
Commonwealth Bank of Australia AUD 100 USD 75 09/21/16 (1 )
Commonwealth Bank of Australia CAD 100 USD 77 09/21/16 —  
Commonwealth Bank of Australia CAD 100 USD 77 09/21/16 1  
Commonwealth Bank of Australia EUR 500 USD 558 09/21/16 (2 )
Commonwealth Bank of Australia EUR 600 USD 667 09/21/16 (5 )
Commonwealth Bank of Australia GBP 100 USD 136 09/21/16 4  
Commonwealth Bank of Australia GBP 200 USD 266 09/21/16 1  
Commonwealth Bank of Australia HKD 1,000 USD 129 09/21/16 —  
Commonwealth Bank of Australia JPY 20,000 USD 194 09/21/16 (2 )
Commonwealth Bank of Australia JPY 20,000 USD 196 09/21/16 —  
Commonwealth Bank of Australia SEK 200 USD 24 09/21/16 —  
HSBC USD 1,656 EUR 1,500 09/21/16 24  
HSBC USD 1,321 GBP 1,000 09/21/16 3  
HSBC USD 7,892 JPY 800,000 09/21/16 (36 )
HSBC EUR 600 USD 662 09/21/16 (10 )
HSBC GBP 1,500 USD 1,982 09/21/16 (5 )
HSBC JPY 300,000 USD 2,960 09/21/16 14  
National Australia Bank Limited USD 4,064 EUR 3,564 09/21/16 (71 )
National Australia Bank Limited USD 2,179 JPY 233,034 09/21/16 109  
National Australia Bank Limited USD 20,640 JPY 2,207,659 09/21/16 1,037  
National Australia Bank Limited EUR 12,770 USD 14,562 09/21/16 255  
National Australia Bank Limited GBP 7,394 USD 10,790 09/21/16 996  
Royal Bank of Canada USD 21,944 GBP 16,000 09/21/16 (751 )
Royal Bank of Canada USD 12,751 JPY 1,300,000 09/21/16 14  
Royal Bank of Canada EUR 100 USD 112 09/21/16 —  
Royal Bank of Canada GBP 300 USD 391 09/21/16 (6 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 75

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Royal Bank of Canada GBP 16,200 USD 22,218 09/21/16 760  
Royal Bank of Canada JPY 30,000 USD 287 09/21/16 (8 )
Royal Bank of Canada JPY 100,000 USD 986 09/21/16 4  
Royal Bank of Canada JPY 1,700,000 USD 16,674 09/21/16 (18 )
Standard Chartered USD 11,124 AUD 15,000 09/21/16 257  
Standard Chartered USD 10,902 CAD 14,000 09/21/16 (177 )
Standard Chartered USD 4,064 EUR 3,564 09/21/16 (71 )
Standard Chartered USD 24,658 GBP 16,900 09/21/16 (2,273 )
Standard Chartered USD 1,916 JPY 200,000 09/21/16 48  
Standard Chartered USD 2,180 JPY 233,034 09/21/16 109  
Standard Chartered USD 20,648 JPY 2,207,659 09/21/16 1,029  
Standard Chartered AUD 6,935 USD 5,143 09/21/16 (119 )
Standard Chartered CAD 6,519 USD 5,077 09/21/16 82  
Standard Chartered CHF 5,000 USD 5,238 09/21/16 65  
Standard Chartered DKK 38,000 USD 5,826 09/21/16 103  
Standard Chartered EUR 3,800 USD 4,328 09/21/16 71  
Standard Chartered EUR 12,770 USD 14,560 09/21/16 254  
Standard Chartered GBP 5,500 USD 8,025 09/21/16 740  
Standard Chartered GBP 7,394 USD 10,787 09/21/16 994  
Standard Chartered HKD 49,000 USD 6,321 09/21/16 2  
State Street USD 2,026 AUD 2,731 09/21/16 46  
State Street USD 5,442 AUD 7,335 09/21/16 123  
State Street USD 23,124 AUD 31,168 09/21/16 525  
State Street USD 3,620 CAD 4,633 09/21/16 (71 )
State Street USD 5,406 CAD 6,919 09/21/16 (106 )
State Street USD 18,238 CAD 23,341 09/21/16 (356 )
State Street USD 819 CHF 800 09/21/16 9  
State Street USD 1,108 EUR 1,000 09/21/16 12  
State Street USD 262 GBP 200 09/21/16 3  
State Street USD 352 GBP 250 09/21/16 (21 )
State Street USD 1,332 GBP 1,000 09/21/16 (7 )
State Street USD 2,129 GBP 1,600 09/21/16 (10 )
State Street USD 7,559 GBP 5,198 09/21/16 (674 )
State Street USD 33,376 GBP 22,950 09/21/16 (2,978 )
State Street USD 645 HKD 5,000 09/21/16 —  
State Street USD 1,478 HKD 11,465 09/21/16 1  
State Street USD 5,891 HKD 45,700 09/21/16 3  
State Street USD 569 JPY 60,000 09/21/16 20  
State Street USD 935 JPY 100,000 09/21/16 47  
State Street USD 963 JPY 100,000 09/21/16 19  
State Street USD 980 JPY 100,000 09/21/16 2  
State Street USD 1,175 JPY 120,000 09/21/16 3  
State Street USD 1,370 JPY 140,000 09/21/16 5  
State Street USD 1,950 JPY 200,000 09/21/16 14  
State Street USD 2,369 JPY 250,000 09/21/16 86  
State Street USD 1,256 SEK 10,184 09/21/16 (62 )
State Street AUD 100 USD 74 09/21/16 (2 )
State Street AUD 100 USD 75 09/21/16 (1 )
State Street AUD 100 USD 76 09/21/16 —  
State Street AUD 200 USD 149 09/21/16 (2 )
State Street AUD 200 USD 147 09/21/16 (5 )
State Street AUD 200 USD 146 09/21/16 (6 )
State Street BRL 164 USD 50 08/02/16 (1 )
State Street BRL 217 USD 66 08/02/16 (1 )
State Street CAD 100 USD 77 09/21/16 —  
State Street CAD 100 USD 76 09/21/16 (1 )
State Street CAD 100 USD 78 09/21/16 1  
State Street CAD 300 USD 232 09/21/16 3  

 

See accompanying notes which are an integral part of this quarterly report.

76 Russell Global Equity Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
State Street CHF 11,019 USD 11,521 09/21/16 121  
State Street CHF 29,690 USD 30,833 09/21/16 117  
State Street EUR 70 USD 80 09/21/16 1  
State Street EUR 400 USD 440 09/21/16 (8 )
State Street EUR 400 USD 452 09/21/16 4  
State Street EUR 400 USD 444 09/21/16 (4 )
State Street EUR 500 USD 558 09/21/16 (2 )
State Street EUR 15,914 USD 18,113 09/21/16 284  
State Street GBP 100 USD 131 09/21/16 (1 )
State Street GBP 100 USD 133 09/21/16 —  
State Street GBP 100 USD 146 09/21/16 14  
State Street GBP 200 USD 266 09/21/16 1  
State Street GBP 300 USD 397 09/21/16 —  
State Street GBP 800 USD 1,136 09/21/16 76  
State Street GBP 1,800 USD 2,397 09/21/16 13  
State Street HKD 1,000 USD 129 09/21/16 —  
State Street HKD 1,000 USD 129 09/21/16 —  
State Street HKD 1,000 USD 129 09/21/16 —  
State Street HKD 186,605 USD 24,055 09/21/16 (12 )
State Street JPY 10,000 USD 96 09/21/16 (3 )
State Street JPY 20,000 USD 191 09/21/16 (5 )
State Street JPY 40,000 USD 391 09/21/16 (1 )
State Street JPY 50,000 USD 479 09/21/16 (12 )
State Street JPY 50,000 USD 475 09/21/16 (16 )
State Street JPY 200,000 USD 1,980 09/21/16 16  
State Street JPY 200,000 USD 1,887 09/21/16 (76 )
State Street JPY 600,000 USD 5,860 09/21/16 (31 )
State Street JPY 5,892,000 USD 55,047 09/21/16 (2,807 )
State Street NOK 225,680 USD 27,745 09/21/16 994  
State Street SEK 100 USD 12 09/21/16 —  
State Street SEK 1,000 USD 116 09/21/16 (1 )
State Street SEK 1,000 USD 119 09/21/16 2  
State Street SEK 195,000 USD 24,042 09/21/16 1,196  
UBS USD 4,060 EUR 3,564 09/21/16 (68 )
UBS USD 2,178 JPY 233,034 09/21/16 110  
UBS USD 20,634 JPY 2,207,659 09/21/16 1,043  
UBS EUR 12,770 USD 14,548 09/21/16 242  
UBS GBP 7,394 USD 10,771 09/21/16 978  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts           6,610  

 

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                  Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Common Stocks                            
Australia $ 4,841 $ 7,876 $ — $ — $   12,717
Austria   —     3,357   —   —     3,357
Belgium   —     14,147   —   —     14,147
Bermuda   4,886   303   —   —     5,189
Brazil   22,798   —     —   —     22,798
Canada   35,376   —     —   —     35,376

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 77

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                              
 
            Fair Value                  
                    Practical        
Portfolio Summary   Level 1   Level 2   Level 3 Expedient (a)     Total  
China     17,510   15,028   —   —     32,538
Denmark     —     8,849   —   —     8,849
Finland     —     19,204   —   —     19,204
France     —     132,243   —   —     132,243
Germany     —     108,427   —   —     108,427
Hong Kong     —     17,754   —   —     17,754
India     4,860   8,211   —   —     13,071
Ireland     51,182   6,234   —   —     57,416
Israel     14,238   265   —   —     14,503
Italy     —     9,447   —   —     9,447
Japan     —     123,462   —   —     123,462
Mexico     7,086   —     —   —     7,086
Netherlands     —     32,008   —   —     32,008
New Zealand     —     4,283   —   —     4,283
Norway     —     13,408   —   —     13,408
Portugal     —     4,588   —   —     4,588
Puerto Rico     6,650   —     —   —     6,650
Russia     —     3,160   —   —     3,160
Singapore     —     11,085   —   —     11,085
South Korea     —     58,582   —   —     58,582
Spain     —     7,114   —   —     7,114
Sweden     —     25,222   —   —     25,222
Switzerland     4,403   125,843   —   —     130,246
Taiwan     21,496   —     —   —     21,496
Thailand     —     12,587   —   —     12,587
United Kingdom     21,363   150,359   —   —     171,722
United States   1,201,326   7,837   —   —     1,209,163
Preferred Stocks   —   75 — —   75
Short-Term Investments   —   19,675 — 86,569 106,244
Other Securities   —   —   — 39,850 39,850
Total Investments 1,418,015 950,633 — 126,419 2,495,067
 
 
Other Financial Instruments                              
Assets                              
Futures Contracts   3,455 —   — —   3,455
Foreign Currency Exchange Contracts   42 20,032 — —   20,074
Liabilities                              
Futures Contracts   (7,994 ) —   — —   (7,994 )
Foreign Currency Exchange Contracts   (6 ) (13,458 ) — —   (13,464 )
Total Other Financial Instruments*   $ (4,503 ) $ 6,574 $ — $ —   $ 2,071

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

See accompanying notes which are an integral part of this quarterly report.

78 Russell Global Equity Fund

 

Russell Investment Company
Russell Global Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings          
 
Amounts in thousands            
 
      Fair Value      
          Practical  
Portfolio Summary Level 1 Level 2   Level 3 Expedient (a) Total

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

Amounts in thousands      
  Fair Value  
Sector Exposure   $  
Consumer Discretionary 400,768
Consumer Staples 131,189
Energy 129,616
Financial Services 550,665
Health Care 355,737
Materials and Processing 96,915
Producer Durables 256,375
Technology 312,824
Utilities 114,884
Short-Term Investments 106,244
Other Securities 39,850
Total Investments 2,495,067

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Equity Fund 79

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
      Amount ($)   Value       Amount ($)   Value
      or Shares   $       or Shares   $
Common Stocks - 92.4%           Transmissora Alianca de Energia          
Argentina - 1.2%           Eletrica SA 233,227   1,863
Arcos Dorados Holdings, Inc. Class           Vale SA Class B - ADR(Æ)(Ñ) 1,567,879   7,491
A(Æ) 438,473   2,403           155,395
Banco Macro SA - ADR(Ñ) 54,897   4,124            
Cresud SACIF  A - ADR(Æ)(Ñ) 408,085   6,954 Cambodia - 0.1%          
IRSA Inversiones y Representaciones           NagaCorp, Ltd. 4,611,624   3,151
SA - ADR(Æ)(Ñ) 58,100   1,074            
Pampa Energia SA - ADR(Æ)(Ñ) 138,464   3,774 Canada - 0.1%          
YPF SA - ADR 475,860   8,789 Gran Tierra Energy, Inc.(Æ) 409,540   1,135
          27,118            
            Cayman Islands - 0.0%          
Bangladesh - 0.4%           CKH Food & Health, Ltd.(Æ)(Ñ) 253,433   578
Beximco Pharmaceuticals, Ltd. 3,075,029   3,405            
BRAC Bank, Ltd. 6,491,325   5,086 Chile - 0.8%          
          8,491 Banco de Chile 1,880,229   208
            Banco Santander Chile - ADR 125,200   2,575
Brazil - 7.0%           Cencosud SA 274,501   781
Ambev SA - ADR 1,542,500   8,916 Cia Cervecerias Unidas SA - ADR 289,124   4,139
B2W Cia Digital(Æ) 1,248,905   5,007 Colbun SA 454,717   112
B2W Cia Digital(Æ) 453,288   1,817 Empresa Nacional de Electricidad SA 81,277   74
Banco Bradesco SA - ADR(Æ) 829,162   7,214 Empresa Nacional de          
Banco do Brasil SA 642,542   4,172 Telecomunicaciones SA(Æ) 314,685   3,098
Banco Santander Brasil SA - ADR(Ñ) 211,300   1,321 Enersis Chile SA(Æ) 19,894,588   2,315
BM&FBovespa SA - Bolsa de Valores           Enersis SA 8,448,370   1,474
Mercadorias e Futuros(Æ) 1,656,100   9,751 Sociedad Quimica y Minera de Chile          
BR Malls Participacoes SA(Æ) 968,202   4,198 SA - ADR 87,600   2,171
Braskem SA - ADR(Ñ) 143,538   1,651           16,947
BRF SA - ADR(Ñ) 164,000   2,736            
BTG Pactual Group 29,800   156 China - 16.5%          
Centrais Eletricas Brasileiras SA(Æ) 181,435   987 3SBio, Inc.(Æ)(Þ) 153,500   154
Cia Brasileira de Distribuicao - ADR(Ñ) 360,700   5,436 51job, Inc. - ADR(Æ)(Ñ) 106,288   3,382
Cia de Saneamento Basico do Estado de           58.com, Inc. - ADR(Æ) 3,694   192
Sao Paulo(Æ) 386,940   3,676 AAC Technologies Holdings, Inc. 103,500   968
Cia de Saneamento Basico do Estado de           Agile Group Holdings, Ltd. 1,786,000   1,019
Sao Paulo - ADR(Æ) 294,000   2,775 Agricultural Bank of China, Ltd. Class H 5,321,000   1,960
Cia de Saneamento de Minas           Air China, Ltd. Class H 360,000   275
Gerais-COPASA(Æ) 270,300   2,751 Alibaba Group Holding, Ltd. - ADR(Æ)          
Cia de Saneamento de Minas           (Ñ) 195,453   16,121
Gerais-COPASA 13,971   142 Anhui Conch Cement Co., Ltd. Class H 2,374,706   6,193
Cielo SA 262,476   2,975 Anta Sports Products, Ltd. 260,000   580
Cosan SA Industria e Comercio 488,800   5,133 Autohome, Inc. - ADR(Æ) 36,669   796
Energisa SA 83,144   533 Baidu, Inc. - ADR(Æ) 105,800   16,886
ENGIE Brasil Energia SA 22,000   286 Bank of China, Ltd. Class H 24,450,000   10,090
Equatorial Energia SA 104,900   1,797 Bank of Communications Co., Ltd. Class        
Gafisa SA 879,760   600 H 7,437,000   5,032
Gerdau SA - ADR(Ñ) 1,721,747   4,063 Baoxin Auto Group, Ltd.(Æ)(Ñ) 685,500   529
Grendene SA 499,846   2,650 BBMG Corp. Class H 295,000   108
Hypermarcas SA 483,400   4,092 Beijing Capital International Airport Co.,        
Itau Unibanco Holding SA - ADR 2,263,466   23,653 Ltd. Class H 196,000   226
JBS SA 1,774,000   5,964 Beijing Jingneng Clean Energy Co., Ltd.          
M Dias Branco SA(Æ) 22,276   807 Class H 634,000   192
MRV Engenharia e Participacoes SA 648,674   2,711 BYD Electronic International Co., Ltd.          
Multiplus SA 53,300   703 (Æ) 2,068,500   1,577
Natura Cosmeticos SA 57,176   587 China Cinda Asset Management Co.,          
Petroleo Brasileiro SA - ADR(Æ)(Ñ) 821,700   7,132 Ltd. Class H 9,879,282   3,211
Porto Seguro SA 307,815   2,668 China CITIC Bank Corp., Ltd. Class H 8,720,000   5,526
Sao Martinho SA 77,616   1,271 China Communications Construction Co.,        
Smiles SA 61,300   982 Ltd. Class H 1,875,000   2,058
Telefonica Brasil SA - ADR 586,194   8,875 China Communications Services Corp.,          
TIM Participacoes SA - ADR 454,100   5,853 Ltd. Class H 244,000   132

 

See accompanying notes which are an integral part of this quarterly report.

80 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
China Construction Bank Corp. Class H 24,387,052   16,352 Guangzhou Automobile Group Co., Ltd.        
China Evergrande Group 3,422,000   2,149 Class H 2,800,000   3,605
China Forestry Holdings Co., Ltd.(Å)(Æ) 871,100   — Guangzhou R&F Properties Co., Ltd. 2,152,000   3,261
China Harmony New Energy Auto           Hua Hong Semiconductor, Ltd.(Þ) 2,196,000   2,062
Holding, Ltd. 1,053,500   592 Huadian Power International Corp., Ltd.        
China Huishan Dairy Holdings Co., Ltd.           Class H 4,916,000   2,331
(Ñ) 821,000   323 Huaneng Power International, Inc. Class        
China Life Insurance Co., Ltd. Class H 1,856,250   4,207 H 696,000   425
China Longyuan Power Group Corp.,           Huaneng Renewables Corp., Ltd. Class        
Ltd. Class H 4,708,000   3,779 H 592,000   190
China Machinery Engineering Corp.           Industrial & Commercial Bank of China,        
Class H 1,106,000   693 Ltd. Class H 28,276,697   16,016
China Mengniu Dairy Co., Ltd. 1,955,000   3,274 Intime Retail Group Co., Ltd. 600,500   474
China Merchants Bank Co., Ltd. Class H 130,500   279 JA Solar Holdings Co., Ltd. - ADR(Æ)        
China Merchants Shekou Industrial Zone         (Ñ) 163,200   1,141
Holdings Co., Ltd. Class A(Å) 345,419   796 JD.com, Inc. - ADR(Æ) 113,100   2,449
China Minsheng Banking Corp., Ltd.           Jiangsu Expressway Co., Ltd. Class H 1,362,000   1,926
Class H 857,500   897 JinkoSolar Holding Co., Ltd. - ADR(Æ)        
China National Building Material Co.,           (Ñ) 97,700   1,786
Ltd. Class H 516,000   238 Kaisa Group Holdings, Ltd.(Å)(Æ)(Ñ) 3,280,000   165
China Oilfield Services, Ltd. Class H 154,000   122 Kingsoft Corp., Ltd. 74,000   126
China Pacific Insurance Group Co., Ltd.           KWG Property Holding, Ltd. 711,000   441
Class H 1,822,728   6,441 Lenovo Group, Ltd. 6,404,527   4,122
China Petroleum & Chemical Corp.           Logan Property Holdings Co., Ltd. 880,000   337
Class H 9,708,550   6,958 Longfor Properties Co., Ltd. 221,500   303
China Railway Construction Corp., Ltd.           Luye Pharma Group, Ltd.(Æ) 334,500   216
Class H 588,000   707 Minth Group, Ltd. 206,000   668
China Railway Group, Ltd. Class H 4,864,000   3,676 NetEase, Inc. - ADR 25,994   5,310
China Resources Land, Ltd. 1,184,000   2,954 New Oriental Education & Technology        
China Shenhua Energy Co., Ltd. Class H 2,054,252   3,944 Group - ADR(Æ) 157,873   6,956
China Telecom Corp., Ltd. Class H 9,970,000   4,927 People's Insurance Co. Group of China,        
China Vanke Co., Ltd. Class H 1,399,100   3,165 Ltd. (The) Class H 1,702,000   656
China Zhongwang Holdings, Ltd. 831,200   372 PetroChina Co., Ltd. Class H 6,248,000   4,261
Chongqing Changan Automobile Co.,           PetroChina Co., Ltd. - ADR 31,700   2,160
Ltd. Class B 2,087,867   3,459 PICC Property & Casualty Co., Ltd.        
Chongqing Rural Commercial Bank Co.,           Class H 3,628,000   5,639
Ltd. Class H 6,446,000   3,387 Ping An Insurance Group Co. of China,        
CIFI Holdings Group Co., Ltd. 14,768,000   3,832 Ltd. Class H 395,500   1,847
CNOOC, Ltd. 3,610,000   4,339 Real Gold Mining, Ltd.(Å)(Æ) 463,232   —
CNOOC, Ltd. - ADR(Ñ) 71,210   8,573 Shandong Weigao Group Medical        
Country Garden Holdings Co., Ltd. 348,000   142 Polymer Co., Ltd. Class H 972,000   543
CRRC Corp., Ltd. 604,000   555 Shanghai Fosun Pharmaceutical Group        
CSPC Pharmaceutical Group, Ltd. 410,000   355 Co., Ltd. Class H 105,500   259
Ctrip.com International, Ltd. - ADR(Æ)           Shanghai Pharmaceuticals Holding Co.,        
(Ñ) 146,910   6,416 Ltd. Class H 2,316,000   5,507
Dalian Wanda Commercial Properties           Shenzhen Expressway Co., Ltd. Class H 1,286,000   1,212
Co., Ltd. Class H(Þ) 28,500   181 Shenzhou International Group Holdings,        
Datang International Power Generation           Ltd. 557,000   2,940
Co., Ltd. Class H 756,000   196 Shui On Land, Ltd. 5,019,000   1,349
Dongfeng Motor Group Co., Ltd. Class H 7,142,000   8,835 SINA Corp.(Æ)(Ñ) 203,500   10,965
ENN Energy Holdings, Ltd. 680,100   3,230 Sino-Ocean Group Holding, Ltd. 834,000   354
Fantasia Holdings Group Co., Ltd. 1,320,000   183 Sinopec Shanghai Petrochemical Co.,        
FIH Mobile, Ltd. 236,000   80 Ltd. Class H 3,054,000   1,482
Fosun International, Ltd. 163,500   214 Sohu.com, Inc.(Æ) 218,600   8,455
Future Land Development Holdings, Ltd. 1,788,000   275 Sunac China Holdings, Ltd. 493,000   308
Geely Automobile Holdings, Ltd. 3,530,000   2,327 Tencent Holdings, Ltd. 2,121,543   50,975
Great Wall Motor Co., Ltd. Class H 570,500   594 Tianhe Chemicals Group, Ltd.(Å)(Æ) 25,778,000   2,326
Gree Electric Appliances, Inc. of Zhuhai         Tianneng Power International, Ltd. 1,836,000   1,263
Class A(Å) 491,300   1,419 Tingyi Cayman Islands Holding Corp. 1,899,777   1,648
            Trina Solar, Ltd. - ADR(Æ)(Ñ) 506,339   4,177

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 81

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Tsingtao Brewery Co., Ltd. Class H 606,000   2,141 China Power International Development,        
Uni-President China Holdings, Ltd. 4,810,200   3,694 Ltd. 752,000   305
Vipshop Holdings, Ltd. - ADR(Æ) 80,300   1,143 China Resources Beer Holdings Co.,        
Want Want China Holdings, Ltd. 310,157   191 Ltd.(Æ) 418,000   810
Weichai Power Co., Ltd. Class H 110,000   131 China Resources Gas Group, Ltd. 1,035,333   3,043
Weiqiao Textile Co. Class H 291,000   232 China Unicom Hong Kong, Ltd. 3,916,000   4,186
Xtep International Holdings, Ltd. 1,889,500   972 CITIC, Ltd. 568,000   859
Yirendai, Ltd. - ADR(Æ)(Ñ) 134,892   3,459 COSCO Pacific, Ltd. 772,000   797
ZTE Corp. Class H 528,000   709 CT Environmental Group, Ltd. 8,797,688   2,682
          367,952 Fullshare Holdings, Ltd. 1,567,500   679
            GCL-Poly Energy Holdings, Ltd.(Æ) 14,492,855   1,999
Colombia - 0.2%           Guangdong Investment, Ltd. 238,000   366
Almacenes Exito SA 406,596   1,854 Haier Electronics Group Co., Ltd. 1,748,956   2,935
Bancolombia SA - ADR(Ñ) 79,400   2,712 Hanergy Thin Film Power Group, Ltd.        
Corp. Financiera Colombiana SA 16,922   212 (Æ) 1,630,000   821
Empresa de Energia de Bogota SA ESP 345,858   204 Hong Kong Exchanges and Clearing,        
          4,982 Ltd. 77,973   1,925
            Hopson Development Holdings, Ltd. 802,000   734
Czech Republic - 0.2%           Huabao International Holdings, Ltd.(Æ) 1,272,000   456
CEZ AS 7,701   145 Kerry Properties, Ltd. 65,000   178
Komercni Banka AS 81,090   3,188 Kingboard Chemical Holdings, Ltd. 1,065,500   2,303
          3,333 Kunlun Energy Co., Ltd. 492,000   373
            Lee & Man Paper Manufacturing, Ltd. 764,000   589
Egypt - 0.4%           New World China Land, Ltd. 1,316,000   1,315
Commercial International Bank Egypt                    
SAE 794,607   4,255 Nine Dragons Paper Holdings, Ltd. 5,972,000   4,746
Commercial International Bank Egypt           NWS Holdings, Ltd. 488,000   799
SAE - GDR 244,600   927 Shenzhen International Holdings, Ltd. 581,000   846
Eastern Tobacco 101,031   2,124 Shenzhen Investment, Ltd. 3,406,000   1,388
Edita Food Industries SAE - GDR 185,284   1,133 Shimao Property Holdings, Ltd. 857,500   1,121
Talaat Moustafa Group 2,456,277   1,546 Sino Biopharmaceutical, Ltd. 2,997,885   2,007
          9,985 Skyworth Digital Holdings, Ltd. 8,736,028   6,544
            SmarTone Telecommunications Holdings,        
Greece - 0.2%           Ltd. 1,348,322   2,404
Alpha Bank AE(Æ) 1,323,990   2,612 Tianjin Development Holdings, Ltd. 350,000   162
Sarantis SA 140,487   1,388 VTech Holdings, Ltd. 157,358   1,711
          4,000 WH Group, Ltd.(Þ) 8,341,000   6,587
            Yue Yuen Industrial Holdings, Ltd. 1,064,500   4,321
Guernsey - 0.2%           Yuexiu Property Co., Ltd. 5,644,000   729
VinaCapital Vietnam Opportunity Fund,           Yuexiu Real Estate Investment Trust(ö) 1,050,000   630
Ltd.(Æ) 1,695,566   5,038         133,993
 
Hong Kong - 6.0%           Hungary - 0.6%        
AIA Group, Ltd. 1,183,000   7,352 MOL Hungarian Oil & Gas PLC 7,789   489
ASM Pacific Technology, Ltd. 589,323   4,387 OTP Bank PLC 231,100   5,623
Brilliance China Automotive Holdings,           Richter Gedeon Nyrt 336,017   7,102
Ltd. 3,968,000   4,415         13,214
China Agri-Industries Holdings, Ltd.(Æ) 743,000   259          
China Everbright International, Ltd. 3,117,978   3,358 India - 9.1%        
China Everbright, Ltd. 48,000   91 Aditya Birla Nuvo, Ltd. 48,833   1,034
China High Speed Transmission           Ambuja Cements, Ltd. 1,215,455   4,921
Equipment Group Co., Ltd. 2,218,000   1,720 Ashok Leyland, Ltd. 597,267   849
China Lumena New Materials Corp.(Æ) 3,024,000   4 Asian Paints, Ltd. 97,009   1,611
China Merchants Holdings International         Aurobindo Pharma, Ltd. 411,678   4,863
Co., Ltd. 1,166,860   3,432 Axis Bank, Ltd. 1,274,438   10,412
China Metal Recycling Holdings, Ltd.           Bajaj Auto, Ltd. 20,832   839
(Å)(Æ) 335,400   — Bajaj Finance, Ltd. 7,194   1,115
China Mobile, Ltd. 932,300   11,579 Bajaj Finserv, Ltd. 32,491   1,321
China Mobile, Ltd. - ADR(Ñ) 309,165   19,196 Bharat Electronics, Ltd. Class A 52,429   969
China Overseas Land & Investment, Ltd. 5,108,040   16,850 Bharat Petroleum Corp., Ltd. 367,050   3,250
            Bharti Airtel, Ltd. 1,654,107   8,968
            Bharti Infratel, Ltd. 707,525   4,171

 

See accompanying notes which are an integral part of this quarterly report.

82 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Bosch, Ltd. 3,023   1,129 Tata Chemicals, Ltd. 256,764   1,821
Britannia Industries, Ltd. 33,914   1,486 Tata Consultancy Services, Ltd. 173,298   6,784
Cadila Healthcare, Ltd. 90,485   496 Tata Motors, Ltd. Class A 969,953   4,681
Castrol India, Ltd. 89,107   588 Tata Motors, Ltd. 865,305   6,507
Chennai Petroleum Corp., Ltd. 238,243   950 Tata Motors, Ltd. - ADR 36,300   1,373
Cipla, Ltd. 185,967   1,465 Tata Power Co., Ltd. 756,724   814
Coal India, Ltd. 77,733   381 Tata Steel, Ltd. 194,255   1,024
Cummins India, Ltd. 115,192   1,498 Tech Mahindra, Ltd. 132,209   965
Dabur India, Ltd. Class A 772,002   3,501 Titan Co., Ltd. 44,535   280
Divi's Laboratories, Ltd. 39,665   711 Torrent Pharmaceuticals, Ltd. 19,068   410
Dr Reddy's Laboratories, Ltd. 28,891   1,264 UltraTech Cement, Ltd. 57,126   3,171
Eicher Motors, Ltd. 3,175   1,066 Unitech, Ltd.(Æ) 4,889,283   527
Federal Bank, Ltd. 1,989,883   1,924 United Phosphorus, Ltd. 100,552   939
GlaxoSmithKline Consumer Healthcare,           Vedanta, Ltd. 1,317,726   3,250
Ltd. 3,173   300 Videocon d2h, Ltd. - ADR(Æ)(Ñ) 97,723   968
Glenmark Pharmaceuticals, Ltd. 123,934   1,592 Wipro, Ltd. 151,090   1,213
Godrej Consumer Products, Ltd. 17,722   421 Zee Entertainment Enterprises, Ltd. 236,820   1,755
Havells India, Ltd. 170,580   992         202,843
HCL Technologies, Ltd. 115,452   1,298          
Hero MotoCorp, Ltd. 19,406   927 Indonesia - 1.6%        
Hindustan Petroleum Corp., Ltd. 223,047   4,205 Astra International Tbk PT 9,577,300   5,659
Hindustan Unilever, Ltd. 96,665   1,330 Bank Central Asia Tbk PT 486,500   537
Hindustan Zinc, Ltd. 34,611   106 Bank Mandiri Persero Tbk PT 602,300   464
Housing Development & Infrastructure,           Bank Negara Indonesia Persero Tbk PT 1,217,000   498
Ltd.(Æ) 578,118   881 Bank Rakyat Indonesia Persero Tbk PT 13,337,200   11,724
Housing Development Finance Corp.,           Gudang Garam Tbk PT 785,900   4,055
Ltd. 336,460   6,914 Media Nusantara Citra Tbk PT 21,259,401   3,493
ICICI Bank, Ltd. - ADR 1,724,640   13,073 Perusahaan Gas Negara Persero Tbk 12,523,657   3,152
ICICI Bank, Ltd. 241,723   939 Steel Pipe Industry of Indonesia PT 59,368,200   1,179
Indiabulls Housing Finance Ltd 98,455   1,126 Tambang Batubara Bukit Asam Persero        
Indian Oil Corp., Ltd. 608,570   4,948     Tbk PT 1,702,000   1,295
Infosys, Ltd. 178,177   2,860 Telekomunikasi Indonesia Persero Tbk        
ITC, Ltd. 373,501   1,406 PT 4,658,400   1,522
Larsen & Toubro, Ltd. 207,309   4,832 Unilever Indonesia Tbk PT 75,100   258
LIC Housing Finance, Ltd. 119,331   928 United Tractors Tbk PT 762,857   919
Lupin, Ltd. 61,162   1,590         34,755
Mahindra & Mahindra Financial                    
Services, Ltd. 197,643   976 Jersey - 0.2%        
Mahindra & Mahindra, Ltd. 60,460   1,325 Randgold Resources, Ltd. 28,104   3,298
 
Manappuram Finance, Ltd. 884,031   1,084 Kazakhstan - 0.0%        
Marico, Ltd. 83,000   352 KazMunaiGas Exploration Production        
Maruti Suzuki India, Ltd. 52,540   3,729     JSC - GDR(Æ) 134,917   1,042
Muthoot Finance, Ltd. 33,484   166          
Nestle India, Ltd. 2,638   283 Kenya - 0.1%        
NHPC, Ltd. 87,248   33 East African Breweries, Ltd. 437,949   1,247
NTPC, Ltd. 385,705   913 Safaricom, Ltd. 1,860,000   349
Oil & Natural Gas Corp., Ltd. 169,082   558         1,596
Oil India, Ltd. 82,753   456          
Oracle Financial Services Software, Ltd. 12,376   680 Kuwait - 0.3%        
Page Industries, Ltd. 1,182   253 National Bank of Kuwait SAKP 1,920,913   3,874
Pidilite Industries, Ltd. 100,410   1,097 VIVA Kuwait Telecom Co.(Æ) 662,906   2,082
Piramal Enterprises, Ltd. Class A 143,962   3,456         5,956
Power Finance Corp., Ltd. 707,677   2,307          
Punjab National Bank(Æ) 1,097,051   2,024 Luxembourg - 0.2%        
Reliance Capital, Ltd. 283,244   1,898 Tenaris SA - ADR 123,700   3,305
Reliance Industries, Ltd. 1,165,815   17,682          
Reliance Industries, Ltd. - GDR(Æ)(Þ) 375,599   11,324 Macao - 0.6%        
Rural Electrification Corp., Ltd. 128,413   407 Sands China, Ltd. 3,323,839   12,733
Sun Pharmaceutical Industries, Ltd. 125,200   1,551          
Sun TV Network, Ltd. 351,959   2,357 Malaysia - 0.7%        
            AirAsia BHD 3,618,900   2,601

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 83

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
AirAsia X BHD(Æ) 3,998,800   393 Grupo Televisa SAB - ADR 412,300   10,955
AMMB Holdings BHD Class 2 134,000   142 Industrias Bachoco SAB de CV 161,400   700
British American Tobacco Malaysia BHD 204,253   2,469 Infraestructura Energetica Nova SAB        
CIMB Group Holdings BHD 125,300   135 de CV 45,957   186
IHH Healthcare BHD 209,400   336 Kimberly-Clark de Mexico SAB de CV        
IJM Corp. BHD 2,882,633   2,401 Class A 1,652,919   3,739
IOI Corp. BHD 170,400   177 Megacable Holdings SAB de CV 225,421   903
Kuala Lumpur Kepong BHD 57,800   329 Nemak SAB de CV(Þ) 152,600   173
Malayan Banking BHD 234,000   461 OHL Mexico SAB de CV 768,832   1,043
MISC BHD 52,900   98 Promotora y Operadora de        
Petronas Chemicals Group BHD 437,500   704 Infraestructura SAB de CV 31,287   365
Petronas Dagangan BHD 288,308   1,650 Wal-Mart de Mexico SAB de CV 1,295,373   2,960
Petronas Gas BHD 54,700   299         83,740
Public Bank BHD 73,000   350          
Resorts World BHD 587,000   618 Morocco - 0.1%        
Steppe Cement, Ltd.(Æ) 1,139,180   369 Residences Dar Saada 112,171   1,953
Tenaga Nasional BHD 227,700   805          
UEM Sunrise BHD 3,169,300   810 Netherlands - 0.4%        
Westports Holdings BHD 303,200   336 Nostrum Oil & Gas PLC(Æ) 278,498   1,106
YTL Corp. BHD 290,000   119 Steinhoff International Holdings NV 162,112   1,024
YTL Power International BHD 2,400   1 X5 Retail Group NV - GDR(Æ) 287,365   6,264
          15,603         8,394
 
Mexico - 3.7%           Nigeria - 0.4%        
Alfa SAB de CV Class A 108,700   178 Dangote Cement PLC 5,152,045   2,914
Alpek SAB de CV Class A 332,588   590 Guaranty Trust Bank PLC 23,915,170   1,807
America Movil SAB de CV 376,500   216 Guaranty Trust Bank PLC - GDR 101,104   435
America Movil SAB de CV Class L           Lekoil, Ltd.(Æ) 9,627,040   2,131
- ADR 181,400   2,092 Zenith Bank PLC 43,058,582   2,288
Arca Continental SAB de CV 38,500   248         9,575
 
Cemex SAB de CV - ADR(Æ) 1,223,676   9,361 Pakistan - 0.9%        
Coca-Cola Femsa SAB de CV 91,885   722 Dawood Hercules Corp., Ltd. 1,428,468   2,059
Controladora Vuela Cia de Aviacion SAB         Engro Corp., Ltd. 1,059,200   3,382
de CV - ADR(Æ) 25,954   470 Engro Foods, Ltd.(Æ) 1,496,900   2,077
El Puerto de Liverpool SAB de CV 93,225   904 Hascol Petroleum, Ltd. 1,565,500   3,537
Fomento Economico Mexicano SAB de           Lucky Cement, Ltd. 712,256   5,033
CV - ADR 82,100   7,348 Searle Co., Ltd. (The) 264,300   1,442
Fomento Economico Mexicano SAB de           United Bank, Ltd. 2,024,017   3,583
CV 79,900   715         21,113
Genomma Lab Internacional SAB de CV                  
Class B(Æ) 2,523,750   2,894 Peru - 0.4%        
Gentera SAB de CV 1,088,696   2,023 Credicorp, Ltd. 55,312   8,868
Gruma SAB de CV Class B 206,340   2,968          
Grupo Aeroportuario del Centro Norte           Philippines - 0.5%        
SAB de CV Class B 335,360   2,086 Ayala Land, Inc. 3,205,934   2,690
Grupo Aeroportuario del Pacifico SAB de         Manila Electric Co. 29,180   201
CV Class B 109,000   1,072 Metro Pacific Investments Corp. 26,487,911   4,221
Grupo Aeroportuario del Sureste SAB de         Semirara Mining & Power Corp. 55,800   141
CV Class B 27,070   416 SM Prime Holdings, Inc. 434,300   270
Grupo Aeroportuario del Sureste SAB de         Universal Robina Corp. 608,848   2,586
CV - ADR 24,200   3,720         10,109
Grupo Bimbo SAB de CV 172,600   514          
Grupo Fin Santander ADR B - ADR 334,100   3,050 Poland - 0.3%        
Grupo Financiero Banorte SAB de CV           Asseco Poland SA 52,438   720
Class O 2,607,652   14,282 Bank Pekao SA 98,254   3,103
Grupo Financiero Inbursa SAB de CV           mBank SA(Æ) 1,769   138
Class O 102,300   164 Polski Koncern Naftowy ORLEN SA 53,499   857
Grupo Lala SAB de CV Class B 1,053,978   2,290 Powszechna Kasa Oszczednosci Bank        
Grupo Mexico SAB de CV 1,746,330   4,214 Polski SA 50,898   310
Grupo Sanborns SAB de CV 142,600   179 Powszechny Zaklad Ubezpieczen SA 17,599   127

 

See accompanying notes which are an integral part of this quarterly report.

84 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Tauron Polska Energia SA(Æ) 765,049   604 Gold Fields, Ltd. - ADR 38,100   237
        5,859 Growthpoint Properties, Ltd.(ö) 94,100   178
          Harmony Gold Mining Co., Ltd. -        
Qatar - 0.2%         ADR(Æ)(Ñ) 542,155   2,478
Al Meera Consumer Goods Co. 46,000   2,765 Liberty Holdings, Ltd. 237,700   2,097
Industries Qatar QSC 86,587   2,536 Massmart Holdings, Ltd. 117,014   1,221
        5,301 MTN Group, Ltd. 52,615   532
          Naspers, Ltd. Class N 74,072   11,641
Romania - 0.2%         Nedbank Group, Ltd. 15,692   225
Banca Transilvania SA 3,624,630   2,074 Pick n Pay Stores, Ltd.(Ñ) 157,438   888
Fondul Proprietatea SA 13,471,388   2,624 Redefine Properties, Ltd.(ö) 265,497   229
        4,698 Remgro, Ltd. 29,697   557
 
Russia - 4.5%         Resilient Property Income 27,944   272
Bashneft PJSC(Æ) 3,811   167 Reunert, Ltd. 542,777   2,447
Federal Grid PJSC 887,420,000   2,163 Sappi, Ltd. - ADR(Æ) 410,039   2,084
Gazprom PJSC - ADR 3,920,411   14,136 Sasol, Ltd. - ADR 252,658   6,733
Inter RAO UES PJSC 24,626,000   976 Shoprite Holdings, Ltd. - ADR 10,792   158
Lukoil PJSC - ADR 610,211   26,456 Sibanye Gold, Ltd. - ADR 121,800   2,272
Lukoil PJSC 39,153   1,705 Standard Bank Group, Ltd. 277,657   2,775
Magnit PJSC 3,285   508 Telkom SA SOC, Ltd. 43,995   204
Mail.Ru Group, Ltd. - GDR(Æ) 1,849   36 Tiger Brands, Ltd. 7,327   206
MegaFon PJSC - GDR 74,103   732 Truworths International, Ltd. 5,529   36
MMC Norilsk Nickel PJSC(Æ) 902   130 Vodacom Group, Ltd. - ADR 205,995   2,395
Mobile TeleSystems PJSC - ADR 180,100   1,601 Woolworths Holdings, Ltd. 411,297   2,652
Novatek OJSC 196,730   1,931         76,756
 
Novolipetsk Steel PJSC - GDR 502,009   7,249 South Korea - 14.1%        
PhosAgro PJSC - GDR 254,191   3,506 Able C&C Co., Ltd. 17,392   500
Ros Agro PLC - GDR 108,514   1,568 Amorepacific Corp. 6,273   2,170
Rosneft PJSC - GDR(Æ) 509,444   2,462 Amorepacific Group 1,854   239
Rosneft PJSC 152,090   753 BNK Financial Group, Inc. 333,949   2,629
Sberbank of Russia PJSC 1,670,700   3,528 Coway Co., Ltd. 42,559   3,256
Sberbank of Russia PJSC - ADR 1,615,546   14,092 Daelim Industrial Co., Ltd. 51,002   3,816
Sberbank of Russia PJSC Class T 774,500   1,632 Daewoo International Corp. 42,805   816
Severstal PJSC - GDR 272,681   3,226 Daou Technology, Inc. 16,509   392
Surgutneftegas OJSC 1,031,100   488 Dongbu HiTek Co., Ltd.(Æ) 111,862   1,773
Surgutneftegas OJSC - ADR 131,666   620 Dongbu Insurance Co., Ltd. 96,808   5,493
Tatneft PJSC - ADR(Ñ) 170,277   4,816 E-MART, Inc. 3,276   479
Tatneft PJSC 168,080   810 GS Engineering & Construction Corp.        
Uralkali PJSC(Æ) 132,990   375 (Æ)(Ñ) 55,050   1,413
VTB Bank PJSC(Æ) 207,840,000   214 GS Holdings Corp. 10,525   453
VTB Bank PJSC 188,450,000   192 Hana Financial Group, Inc. 274,453   6,701
X5 Retail Group NV - GDR(Æ) 87,321   1,903 Hankook Tire Co., Ltd. 312,001   15,110
Yandex NV Class A(Æ) 125,500   2,717 Hankook Tire Worldwide Co., Ltd. 33,987   628
        100,692 Hanon Systems 368,666   3,764
 
Singapore - 0.1%         Hanssem Co., Ltd. 3,027   465
BOC Aviation, Ltd.(Æ)(Þ) 318,824   1,521 Hanwha Corp. 6,195   197
Golden Agri-Resources, Ltd. 2,987,000   804 Hanwha Life Insurance Co., Ltd. 90,273   465
        2,325 Hyosung Corp. 4,635   573
          Hyundai Department Store Co., Ltd. 2,062   228
South Africa - 3.4%         Hyundai Engineering & Construction        
African Bank Investments, Ltd.(Å)(Æ) 887,049   — Co., Ltd. 62,961   2,061
AngloGold Ashanti, Ltd. - ADR(Æ) 511,145   11,199 Hyundai Heavy Industries Co., Ltd.(Æ) 9,040   1,013
Aspen Pharmacare Holdings, Ltd. 178,558   4,827 Hyundai Marine & Fire Insurance Co.,        
AVI, Ltd. 467,666   3,024 Ltd. 82,210   2,225
Bid Corp., Ltd. 179,559   3,350 Hyundai Mobis Co., Ltd. 22,669   5,166
Bidvest Group, Ltd. (The) 424,129   4,877 Hyundai Motor Co. 67,155   7,882
Clicks Group, Ltd. 25,441   227 Hyundai Wia Corp. 11,725   900
Discovery Holdings, Ltd. 313,152   2,817 Industrial Bank of Korea 30,962   327
FirstRand, Ltd. 1,118,242   3,918 JB Financial Group Co., Ltd. 77,550   414

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 85

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Kakao Corp.(Ñ) 2,555   207 Dufry AG(Æ) 38,548   4,435
Kangwon Land, Inc. 9,538   349         7,737
KB Financial Group, Inc. 539,546   17,101          
KB Financial Group, Inc. - ADR 81,600   2,592 Taiwan - 10.0%        
KB Insurance Co., Ltd. 58,400   1,482 Accton Technology Corp. 190,000   329
KCC Corp. 10,447   3,684 Advanced Semiconductor Engineering,        
KEPCO Plant Service & Engineering         Inc. 5,405,459   6,485
Co., Ltd. 9,096   558 Advantech Co., Ltd. 445,815   3,486
Kia Motors Corp. 195,054   7,345 Airtac International Group 176,850   1,325
Korea Electric Power Corp. - ADR 168,400   4,579 Arcadyan Technology Corp. 1,072,000   1,941
Korea Electric Power Corp. 125,551   6,863 Asia Cement Corp. 1,025,000   938
Korea Investment Holdings Co., Ltd. 5,453   229 Asustek Computer, Inc. 129,000   1,127
Korea Kolmar Co., Ltd.(Ñ) 36,580   3,098 AU Optronics Corp. 5,356,000   2,194
Korea Petrochemical Industries Co.,         Boardtek Electronics Corp. 231,000   295
Ltd.(Ñ) 3,812   801 Catcher Technology Co., Ltd. 440,650   3,058
KT Corp. - ADR 95,440   1,456 Cathay Financial Holding Co., Ltd. 543,000   608
KT Corp. 34,605   981 Chang Hwa Commercial Bank, Ltd. 2,188,000   1,176
KT&G Corp. 48,147   5,202 Chaun-Choung Technology Corp. 90,000   425
LG Chem, Ltd. 35,422   7,685 Chen Full International Co., Ltd. 93,000   159
LG Corp. Class H 18,783   1,066 Cheng Shin Rubber Industry Co., Ltd. 1,090,000   2,276
LG Electronics, Inc. Class H 18,377   878 China Development Financial Holding        
LG Household & Health Care, Ltd.(Æ) 4,775   4,298 Corp. 4,301,000   1,047
LG International Corp. 50,954   1,660 China Life Insurance Co., Ltd. 1,275,040   1,052
LG Uplus Corp. 300,954   2,943 China Steel Corp. Class H 147,000   101
Lotte Chemical Corp. 5,594   1,519 Chin-Poon Industrial Co., Ltd. 825,000   1,808
Lotte Chilsung Beverage Co., Ltd. 2,199   3,241 Chipbond Technology Corp. 2,292,000   3,130
Lotte Confectionery Co., Ltd. 21,420   3,625 Chunghwa Telecom Co., Ltd. 2,522,000   8,991
Lotte Shopping Co., Ltd. 14,432   2,490 Compal Electronics, Inc. 582,000   365
NAVER Corp. 1,471   933 CTBC Financial Holding Co., Ltd. 1,965,000   1,083
NCSoft Corp. 1,968   442 Delta Electronics, Inc. 1,231,167   6,469
Orion Corp. 257   211 E Ink Holdings, Inc. 379,000   225
POSCO 25,746   5,220 E.Sun Financial Holding Co., Ltd. 7,005,900   3,910
Samsung Card Co., Ltd. 67,840   2,614 Eclat Textile Co., Ltd. 245,402   2,737
Samsung Electronics Co., Ltd. 65,463   90,022 Elite Material Co., Ltd. 360,000   817
Samsung Electronics Co., Ltd. - GDR 13,498   8,755 Far Eastern New Century Corp. 1,200,000   935
Samsung Electronics Co., Ltd. - GDR(Æ)         Far EasTone Telecommunications Co.,        
(Þ) 9,112   6,255 Ltd. 447,000   1,030
Samsung Fire & Marine Insurance Co.,         Feng TAY Enterprise Co., Ltd. 149,160   674
Ltd. 7,044   1,677 First Financial Holding Co., Ltd. 2,046,000   1,134
Samsung Life Insurance Co., Ltd. 69,921   6,078 Formosa Chemicals & Fibre Corp. 335,000   870
Shinhan Financial Group Co., Ltd. 238,615   8,547 Formosa Petrochemical Corp. 752,000   2,135
Shinsegae Co., Ltd. 12,616   2,052 Formosa Plastics Corp. 447,000   1,087
SK Holdings Co., Ltd. 1,400   261 Foxconn Technology Co., Ltd. 128,000   310
SK Hynix, Inc. 240,012   7,336 Fubon Financial Holding Co., Ltd. 1,140,000   1,418
SK Innovation Co., Ltd. 29,188   3,850 Giant Manufacturing Co., Ltd. 392,951   2,642
SK Telecom Co., Ltd. - ADR 460,700   10,555 Grand Pacific Petrochemical 1,986,000   1,045
S-Oil Corp. 8,433   580 Hermes Microvision, Inc. 18,000   762
Tongyang Life Insurance Co., Ltd. 46,027   442 Highwealth Construction Corp. 82,000   125
Woori Bank(Æ) 298,802   2,692 Hiwin Technologies Corp. 283,201   1,387
        316,002 Hon Hai Precision Industry Co., Ltd. 3,937,107   10,830
          Hotai Motor Co., Ltd. 15,000   151
Spain - 0.0%         Hua Nan Financial Holdings Co., Ltd. 1,722,000   939
Cemex Latam Holdings SA(Æ) 244,566   988 Innolux Corp. 1,973,000   731
          Inotera Memories, Inc.(Æ) 387,000   316
Sri Lanka - 0.1%         Inventec Corp. 376,000   294
Distilleries Co. of Sri Lanka PLC 1,269,213   2,089 King Yuan Electronics Co., Ltd. 1,971,000   1,887
          Kinsus Interconnect Technology Corp. 406,000   874
Switzerland - 0.3%         Largan Precision Co., Ltd. 162,913   17,500
Coca-Cola HBC AG - ADR 159,850   3,302 Lite-On Technology Corp. 2,003,000   2,994
          MediaTek, Inc. 651,000   4,955

 

See accompanying notes which are an integral part of this quarterly report.

86 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Mega Financial Holding Co., Ltd. 6,364,498   4,988 Siam Cement PCL (The) 14,100   207
Mercuries Life Insurance Co., Ltd.(Æ) 602,000   306 Siam Commercial Bank PCL (The) 1,190,600   5,446
Micro-Star International Co., Ltd. 916,000   2,000 Star Petroleum Refining PCL 5,923,800   1,562
Nan Ya Plastics Corp. 213,000   403 Supalai PCL 1,605,200   1,149
Nanya Technology Corp. 868,000   1,023 Thai Beverage PCL 943,600   729
Novatek Microelectronics Corp. 1,087,000   3,808 Thai Oil PCL 883,400   1,543
OBI Pharma, Inc.(Æ) 51,000   787 Thai Union Group PCL Class F 5,529,514   3,466
Pegatron Corp. 258,000   632 Thai Union Group PCL 493,600   309
Pou Chen Corp. Class B 588,000   802 Thanachart Capital PCL 1,445,100   1,692
Powertech Technology, Inc. 876,000   2,229 Tisco Financial Group PCL 1,900,940   2,958
President Chain Store Corp. 192,000   1,565 TMB Bank PCL 10,515,000   683
Quanta Computer, Inc. 161,000   328         54,286
Realtek Semiconductor Corp. 168,000   608          
Shin Kong Financial Holding Co., Ltd.         Togo - 0.0%        
(Æ) 4,289,000   869 Ecobank Transnational, Inc. 25,971,762   1,040
Silicon Motion Technology Corp. - ADR 15,400   796          
Siliconware Precision Industries Co.,         Turkey - 2.0%        
Ltd. 83,000   124 Akbank TAS 1,990,077   5,126
Sinbon Electronics Co., Ltd. 80,000   191 Anadolu Efes Biracilik Ve Malt Sanayii        
SinoPac Financial Holdings Co., Ltd. 3,563,000   1,148 AS 249,754   1,692
Sitronix Technology Corp. 246,000   818 Arcelik AS 222,179   1,518
Taishin Financial Holding Co., Ltd. 706,000   283 Emlak Konut Gayrimenkul Yatirim        
Taiwan Cement Corp. 487,000   517 Ortakligi AS(ö) 4,939,555   4,412
Taiwan Cooperative Financial Holding         Enka Insaat ve Sanayi AS 1,758,632   2,595
Co., Ltd. 2,257,000   1,057 Ford Otomotiv Sanayi AS 194,035   2,112
Taiwan Mobile Co., Ltd. 288,000   993 GSD Holding AS 260,524   86
Taiwan Semiconductor Manufacturing         Haci Omer Sabanci Holding AS 1,152,570   3,436
Co., Ltd. 6,979,382   37,682 Koza Altin Isletmeleri AS(Æ) 21,544   74
Taiwan Semiconductor Manufacturing         Soda Sanayii AS 725,067   998
Co., Ltd. - ADR 1,157,660   32,160 TAV Havalimanlari Holding AS 508,109   1,882
Taiwan Union Technology Corp. 898,000   1,143 Tekfen Holding AS 840,796   2,082
Tong Yang Industry Co., Ltd. 724,000   1,303 Torunlar Gayrimenkul Yatirim Ortakligi        
Tripod Technology Corp. 1,818,888   3,716 AS(ö) 120,316   186
Uni-President Enterprises Corp. 808,000   1,657 Trakya Cam Sanayii AS 209,541   173
United Microelectronics Corp. 2,153,000   800 Tupras Turkiye Petrol Rafinerileri AS 180,763   3,879
Winbond Electronics Corp. 1,318,000   395 Turkcell Iletisim Hizmetleri AS        
Wistron Corp. 4,120,000   3,268 - ADR(Æ) 134,691   1,163
Yuanta Financial Holding Co., Ltd. 3,847,000   1,347 Turkiye Garanti Bankasi AS 680,425   1,668
        224,328 Turkiye Halk Bankasi AS 2,108,018   5,542
          Turkiye Is Bankasi Class C 538,717   829
Thailand - 2.4%         Turkiye Vakiflar Bankasi TAO Class D 1,447,517   2,142
Airports of Thailand PCL 30,900   351 Yapi ve Kredi Bankasi AS(Æ) 1,789,292   2,065
Bangkok Bank PCL 992,700   4,859         43,660
Bangkok Dusit Medical Services PCL                  
Class F 728,900   471 Ukraine - 0.4%        
BEC World PCL 2,035,922   1,440 Kernel Holding SA 325,485   5,162
Bumrungrad Hospital PCL 155,000   820 MHP SA - GDR 494,418   4,548
Central Pattana PCL 1,800,017   2,976         9,710
 
Charoen Pokphand Foods PCL 1,914,000   1,535 United Arab Emirates - 0.5%        
CP ALL PCL 172,500   257 Air Arabia PJSC 2,388,160   941
Intouch Holdings PCL 141,400   243 Aldar Properties PJSC 4,926,011   3,869
Jasmine International PCL 9,283,607   1,517 DAMAC Properties Dubai Co. PJSC 2,121,801   1,354
Kasikornbank PCL 1,271,894   7,226 DP World, Ltd. 114,600   1,948
Kiatnakin Bank PCL 183,700   277 Dubai Investments PJSC 2,643,817   1,528
Krung Thai Bank PCL 2,515,700   1,258 Dubai Islamic Bank PJSC 735,914   1,082
Pruksa Real Estate PCL 3,352,099   2,649 Emaar Properties PJSC 599,299   1,119
PTT Exploration & Production PCL 787,103   1,879         11,841
PTT PCL 672,800   6,417          
Ratchthani Leasing PCL 651,400   112          
Sansiri PCL 4,905,200   255          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 87

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)       Amounts in thousands (except share amounts)      
      Principal   Fair         Principal   Fair  
      Amount ($)   Value         Amount ($)   Value  
      or Shares   $         or Shares   $  
United Kingdom - 0.4%             United Kingdom - 0.1%              
BGEO Group PLC 274,186   9,902   HSBC Bank PLC              
              Zero coupon due 09/12/16     52   2,173  
United States - 0.1%                            
edita food industries SAE 28,688   175   Total Certificates of Participation              
Samsonite International SA 769,788   2,183   (cost $6,871)           11,710  
          2,358                  
              Warrants & Rights - 0.2%              
Vietnam - 0.3%             Hong Kong - 0.0%              
Hoa Phat Group JSC 705,460   1,409   China Resources Beer Holdings Co.,              
Military Commercial Joint Stock Bank 2,001,390   1,347   Ltd.(Æ)              
Mobile World Investment Corp. 566,080   3,399   2016  Rights     139,333   56  
PetroVietnam Drilling & Well Services                            
JSC - ADR 1,065,330   1,253   Netherlands - 0.2%              
          7,408   Bharat Forge, Ltd.(Æ)(Þ)              
              2019 Warrants      13,707   155  
Total Common Stocks             Grasim Industries, Ltd.(Æ)              
(cost $1,981,123)         2,067,175   2017 Warrants      42,308   3,073  
              Grasim Industries, Ltd.(Æ)              
Preferred Stocks - 1.3%             2019 Warrants      1,532   111  
Brazil - 0.8%             Titan Co., Ltd.(Æ)(Þ)              
Banco do Estado do Rio Grande do Sul             2016 Warrants      17,974   112  
SA(Æ) 426,311   1,417   TTK Prestige, Ltd.(Æ)(Þ)              
Braskem SA 312,200   1,785   2017 Warrants      3,862   296  
Cia Energetica de Minas Gerais 307,067   861               3,747  
Itau Unibanco Holding SA 116,800   1,217                  
Lojas Americanas SA 382,408   2,259   United Kingdom - 0.0%              
Petroleo Brasileiro SA(Æ) 818,000   2,995   HSBC Bank PLC(Æ)              
Telefonica Brasil SA 328,631   4,990   2018 Warrants       1,837   52  
Vale SA(Æ) 335,120   1,551                  
          17,075   Total Warrants & Rights              
              (cost $2,682)           3,855  
Colombia - 0.0%                            
Banco Davivienda SA 71,155   626 Short-Term Investments - 4.0%              
Bancolombia SA 24,170   207   United States - 4.0%              
          833   Russell U.S. Cash Management Fund     81,482,930 (8) 81,483  
              United States Treasury Bills              
Russia - 0.1%                 0.431% due 08/11/16(§)(ç)   2,000   2,000  
AK Transneft OJSC 328   828                  
Surgutneftegas OJSC 2,442,000   1,207   0.241% due 09/08/16(§)(ç)(~)   4,000   3,999  
          2,035       0.385% due 10/13/16(§)(~)   1,000   999  
                          88,481  
South Korea - 0.4%             Total Short-Term Investments              
Hyundai Motor Co. 10,122   908   (cost $88,481)           88,481  
Samsung Electronics Co., Ltd. 6,143   6,945                  
Samsung Fire & Marine Insurance Co.,             Other Securities - 2.7%              
Ltd. 1,226   187   Russell U.S. Cash Collateral Fund(×)     61,498,156 (8) 61,498  
          8,040   Total Other Securities              
              (cost $61,498)           61,498  
Total Preferred Stocks                            
 
(cost $24,229)         27,983   Total Investments 101.1%              
 
Certificates of Participation - 0.5%           (identified cost $2,164,884)           2,260,702  
Netherlands - 0.4%                            
JPMorgan Structured Products BV             Other Assets and Liabilities, Net              
Zero coupon due 08/14/17 535   3,343 -(1.1%)         (23,863 )
Series 0001             Net Assets - 100.0%           2,236,839  
Zero coupon due 05/16/17 179   2,026                  
Zero coupon due 07/02/18 18   1,414                  
Series 0002                            
Zero coupon due 07/02/18 286   2,754                  
          9,537                  

 

See accompanying notes which are an integral part of this quarterly report.

88 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition   Amount ($)   Unit   (000 ) (000 )
Securities   Date   or shares   $   $   $  
0.2%                      
African Bank Investments, Ltd.   02/22/13 ZAR 887,049 — 1,651 —  
China Forestry Holdings Co., Ltd.   01/14/11 HKD 871,100 0.43 372 —  
China Merchants Shekou Industrial Zone Holdings Co., Ltd.   01/04/16 CNY 345,419 2.91 1,005 796  
China Metal Recycling Holdings, Ltd.   11/16/12 HKD 335,400 — 339 —  
Gree Electric Appliances, Inc. of Zhuhai   07/17/14 CNY 491,300 2.31 1,137 1,419  
Kaisa Group Holdings, Ltd.   09/12/14 HKD 3,280,000 0.38 1,261 165  
Real Gold Mining, Ltd.   05/04/10 HKD 463,232 1.60 741 —  
Tianhe Chemicals Group, Ltd.   07/09/14 HKD 25,778,000 0.23 5,886 2,326  
                      4,706  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.                

 

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
BIST 30 Index Futures 955 TRY 8,913 08/16 (170 )
BOLSA Index Futures 195 MXN 91,321 09/16 62  
FTSE/JSE Index Futures 268 ZAR 123,636 09/16 (39 )
Hang Seng Index Futures 106 HKD 115,402 08/16 (214 )
H-Shares Index Futures 260 HKD 116,649 08/16 (107 )
Ibovespa Index Futures 20 USD 1,150 08/16 145  
KOSPI2 Index Futures 360 KRW 45,432,000   09/16 740  
MSCI Emerging Markets Mini Index Futures 238 USD 10,490 09/16 429  
MSCI Taiwan Index Futures 1,145 USD 38,117 08/16 (15 )
SGX NIFTY 50 Index       1,339 USD 23,265 08/16 86  
Short Positions                  
MSCI Emerging Markets Mini Index Futures 752 USD 33,145 09/16 (2,295 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               (1,378 )

 

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD   162 EUR 145 08/02/16 —  
Bank of America USD   160 HKD 1,240 08/01/16 —  
Bank of America USD   2,580 HKD 20,000 09/21/16 (1 )
Bank of America USD   3,008 HKD 23,334 09/21/16 2  
Bank of America USD   443 INR 30,000 09/21/16 3  
Bank of America USD   6,357 INR 430,000 09/21/16 40  
Bank of America USD   2,564 KRW 2,970,000 09/21/16 105  
Bank of America USD   9,609 KRW 11,000,000 09/21/16 276  
Bank of America USD   17,001 KRW 19,695,000 09/21/16 695  
Bank of America USD   80 MXN 1,501 08/01/16 —  
Bank of America USD   75 MXN 1,408 08/02/16 1  
Bank of America USD   890 MXN 16,674 09/21/16 (5 )
Bank of America USD   494 PLN 1,928 08/02/16 1  
Bank of America USD   754 SGD 1,012 08/03/16 1  
Bank of America USD   2,672 TRY 7,941 09/21/16 (45 )
Bank of America USD   523 ZAR 7,260 08/04/16 —  
Bank of America USD   1,464 ZAR 22,255 09/21/16 124  
Bank of America HKD   390 USD 50 08/01/16 —  
Bank of America HKD   654 USD 84 08/01/16 —  
Bank of America HKD   280 USD 36 08/02/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 89

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America HKD 501 USD 65 08/02/16 —  
Bank of America HKD 694 USD 89 08/02/16 —  
Bank of America HKD 18,700 USD 2,410 08/02/16 —  
Bank of America HKD 2,000 USD 258 09/21/16 —  
Bank of America HKD 5,000 USD 645 09/21/16 —  
Bank of America HKD 10,000 USD 1,290 09/21/16 —  
Bank of America HKD 10,000 USD 1,290 09/21/16 —  
Bank of America HKD 15,000 USD 1,934 09/21/16 —  
Bank of America HKD 15,000 USD 1,934 09/21/16 —  
Bank of America HKD 20,000 USD 2,580 09/21/16 1  
Bank of America KRW 200,000 USD 175 09/21/16 (5 )
Bank of America KRW 200,000 USD 172 09/21/16 (7 )
Bank of America MXN 2,000 USD 105 09/21/16 (1 )
Bank of America MXN 3,500 USD 188 09/21/16 5  
Bank of America MXN 10,000 USD 530 09/21/16 —  
Bank of America TRY 6,045 USD 2,022 08/02/16 (2 )
Bank of America TRY 500 USD 167 09/21/16 2  
Bank of America ZAR 6,000 USD 415 09/21/16 (13 )
Bank of America ZAR 15,000 USD 963 09/21/16 (107 )
Bank of Montreal HKD 10,000 USD 1,290 09/21/16 1  
Bank of Montreal MXN 10,000 USD 536 09/21/16 5  
Bank of Montreal ZAR 10,000 USD 688 09/21/16 (26 )
Barclays USD 727 IDR 9,841,826 09/20/16 20  
Barclays USD 4,088 INR 277,934 09/20/16 47  
BNP Paribas USD 309 BRL 1,000 08/02/16 —  
BNP Paribas USD 617 BRL 2,000 08/02/16 (1 )
BNP Paribas USD 6,017 HKD 46,669 09/21/16 2  
BNP Paribas USD 890 MXN 16,674 09/21/16 (5 )
BNP Paribas USD 9,106 ZAR 132,257 09/20/16 330  
BNP Paribas USD 1,465 ZAR 22,255 09/21/16 123  
BNP Paribas ARS 48,348 USD 3,234 09/20/16 113  
BNP Paribas BRL 1,000 USD 304 08/02/16 (4 )
BNP Paribas BRL 2,000 USD 609 08/02/16 (8 )
BNP Paribas HKD 26,923 USD 3,474 09/20/16 2  
BNP Paribas HKD 5,000 USD 645 09/21/16 —  
BNP Paribas KRW 2,500,000 USD 2,176 09/21/16 (71 )
BNP Paribas TRY 2,759 USD 897 09/20/16 (16 )
Brown Brothers Harriman USD 4,515 HKD 35,000 09/21/16 (1 )
Brown Brothers Harriman USD 523 MXN 10,000 09/21/16 7  
Brown Brothers Harriman USD 333 TRY 1,000 09/21/16 (2 )
Brown Brothers Harriman USD 962 ZAR 15,000 09/21/16 109  
Citibank USD 3,408 PLN 13,047 09/20/16 (64 )
Citibank USD 921 TRY 2,759 09/20/16 (8 )
Citibank HKD 5,916 USD 763 09/20/16 —  
Citibank HKD 17,836 USD 2,298 09/20/16 (2 )
Citibank TRY 1,000 USD 324 09/21/16 (7 )
Citibank ZAR 27,620 USD 1,778 09/20/16 (193 )
Goldman Sachs KRW 2,402,714 USD 2,034 09/20/16 (124 )
Goldman Sachs TRY 586 USD 197 09/21/16 3  
HSBC USD 1,528 BRL 5,000 08/02/16 14  
HSBC USD 783 HUF 223,057 09/20/16 19  
HSBC USD 1,248 INR 84,483 09/20/16 9  
HSBC USD 7,937 INR 538,000 09/21/16 66  
HSBC USD 9,861 INR 668,400 09/21/16 83  
HSBC USD 2,584 ZAR 39,159 09/20/16 209  
HSBC BRL 5,000 USD 1,544 08/02/16 2  
HSBC HKD 19,412 USD 2,503 09/20/16 —  
HSBC KRW 1,615,391 USD 1,419 09/20/16 (33 )
HSBC KRW 31,230,869 USD 27,007 09/20/16 (1,057 )
Morgan Stanley USD 9,920 MYR 40,323 09/20/16 71  
Morgan Stanley USD 2,835 ZAR 45,623 09/20/16 420  
Morgan Stanley HUF 1,222,585 USD 4,445 09/20/16 50  
Morgan Stanley PLN 3,033 USD 768 09/20/16 (9 )

 

See accompanying notes which are an integral part of this quarterly report.

90 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
National Australia Bank Limited USD 6,016 HKD 46,669 09/21/16 3  
National Australia Bank Limited USD 890 MXN 16,674 09/21/16 (5 )
National Australia Bank Limited USD 1,464 ZAR 22,255 09/21/16 123  
Royal Bank of Canada HKD 10,000 USD 1,290 09/21/16 —  
Royal Bank of Canada HKD 10,000 USD 1,290 09/21/16 —  
Royal Bank of Scotland USD 1,543 COP 4,685,127 09/20/16 (32 )
Royal Bank of Scotland USD 6,589 MXN 121,454 09/20/16 (145 )
Royal Bank of Scotland USD 3,529 ZAR 53,237 09/20/16 270  
Royal Bank of Scotland ARS 14,178 USD 957 09/20/16 42  
Royal Bank of Scotland PEN 2,423 USD 714 09/20/16 (5 )
Standard Chartered USD 6,017 HKD 46,669 09/21/16 2  
Standard Chartered USD 3,486 IDR 47,052,334 09/20/16 82  
Standard Chartered USD 9,619 INR 655,448 09/20/16 133  
Standard Chartered USD 890 MXN 16,674 09/21/16 (5 )
Standard Chartered USD 1,463 ZAR 22,255 09/21/16 125  
Standard Chartered CNY 23,245 USD 3,479 09/20/16 (19 )
Standard Chartered KRW 1,803,263 USD 1,527 09/20/16 (93 )
Standard Chartered RUB 238,488 USD 3,729 08/18/16 129  
State Street USD 161 AED 591 08/01/16 —  
State Street USD 482 BRL 1,573 08/01/16 3  
State Street USD 122 BRL 396 08/02/16 —  
State Street USD 247 BRL 800 08/02/16 —  
State Street USD 309 BRL 1,000 08/02/16 —  
State Street USD 309 BRL 1,000 08/02/16 —  
State Street USD 309 BRL 1,000 08/02/16 —  
State Street USD 929 BRL 3,000 08/02/16 (3 )
State Street USD 1,544 BRL 5,000 08/02/16 (2 )
State Street USD 4,829 BRL 16,000 08/02/16 106  
State Street USD 5,963 BRL 20,040 08/02/16 218  
State Street USD 8,719 BRL 28,240 08/02/16 (9 )
State Street USD 19,519 BRL 65,600 08/02/16 714  
State Street USD 21,454 BRL 69,491 08/02/16 (22 )
State Street USD 21,473 BRL 70,491 08/02/16 267  
State Street USD 21,797 BRL 70,600 08/02/16 (23 )
State Street USD 1,225 BRL 3,969 08/03/16 (1 )
State Street USD 8,516 BRL 28,240 09/02/16 100  
State Street USD 21,289 BRL 70,600 09/02/16 251  
State Street USD 1,578 CNY 10,603 09/20/16 18  
State Street USD 198 EUR 177 08/02/16 —  
State Street USD 7 HKD 57 08/01/16 —  
State Street USD 137 HKD 1,059 08/01/16 —  
State Street USD 19,353 HKD 150,000 09/21/16 (7 )
State Street USD 175 INR 12,000 09/21/16 4  
State Street USD 175 INR 12,000 09/21/16 3  
State Street USD 295 INR 20,000 09/21/16 2  
State Street USD — KRW 253 08/01/16 —  
State Street USD 377 KRW 421,973 08/01/16 —  
State Street USD 434 KRW 500,000 09/21/16 16  
State Street USD 593 KRW 700,000 09/21/16 36  
State Street USD 150 MXN 2,822 08/03/16 —  
State Street USD 2,708 MXN 50,000 09/21/16 (55 )
State Street USD 107 THB 3,723 08/01/16 —  
State Street USD 152 THB 5,297 08/01/16 —  
State Street USD 1,465 TRY 4,300 09/21/16 (43 )
State Street USD 4,468 ZAR 65,000 09/21/16 169  
State Street BRL 10 USD 3 08/02/16 —  
State Street BRL 800 USD 248 08/02/16 1  
State Street BRL 1,000 USD 297 08/02/16 (11 )
State Street BRL 1,000 USD 305 08/02/16 (4 )
State Street BRL 1,000 USD 306 08/02/16 (3 )
State Street BRL 3,000 USD 926 08/02/16 1  
State Street BRL 5,000 USD 1,530 08/02/16 (12 )
State Street BRL 16,000 USD 4,940 08/02/16 5  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 91

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street BRL 20,040 USD   6,187 08/02/16 6  
State Street BRL 28,240 USD   8,603 08/02/16 (107 )
State Street BRL 65,600 USD   20,253 08/02/16 21  
State Street BRL 69,491 USD   20,676 08/02/16 (755 )
State Street BRL 70,491 USD   21,763 08/02/16 23  
State Street BRL 70,600 USD   21,507 08/02/16 (267 )
State Street BRL 135 USD   42 08/03/16 —  
State Street BRL 4,245 USD   1,310 08/03/16 1  
State Street BRL 1,000 USD   301 09/02/16 (4 )
State Street BRL 70,491 USD   21,256 09/02/16 (251 )
State Street CHF 194 USD   198 08/02/16 (2 )
State Street CHF 664 USD   685 08/03/16 —  
State Street GBP 70 USD   92 08/01/16 (1 )
State Street HKD 1,155 USD   149 08/01/16 —  
State Street HKD 1,176 USD   152 08/01/16 —  
State Street HKD 10,000 USD   1,290 09/21/16 —  
State Street HKD 10,000 USD   1,290 09/21/16 —  
State Street HKD 30,000 USD   3,869 09/21/16 —  
State Street IDR 1,916,291 USD   146 08/01/16 —  
State Street IDR 2,522,037 USD   192 08/01/16 —  
State Street INR 500 USD   7 09/21/16 —  
State Street INR 40,000 USD   590 09/21/16 (5 )
State Street KRW 100,000 USD   86 09/21/16 (4 )
State Street KRW 500,000 USD   433 09/21/16 (16 )
State Street KRW 4,000,000 USD   3,519 09/21/16 (76 )
State Street MXN 459 USD   24 08/01/16 —  
State Street MXN 10,000 USD   539 09/21/16 9  
State Street MYR 202 USD   50 08/01/16 —  
State Street RON 1,158 USD   289 08/02/16 (2 )
State Street THB 1,262 USD   36 08/01/16 —  
State Street THB 4,281 USD   123 08/01/16 —  
State Street THB 17,102 USD   492 08/03/16 —  
State Street TRY 323 USD   108 08/01/16 —  
State Street TRY 400 USD   135 09/21/16 2  
State Street TRY 1,000 USD   339 09/21/16 8  
State Street ZAR 10,000 USD   675 09/21/16 (39 )
UBS HKD 20,000 USD   2,580 09/21/16 —  
UBS INR 100,000 USD   1,476 09/21/16 (12 )
UBS MXN 121,454 USD   6,518 09/20/16 74  
UBS MXN 8,000 USD   434 09/21/16 9  
UBS TRY 2,000 USD   673 09/21/16 11  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts         2,091  

 

See accompanying notes which are an integral part of this quarterly report.

92 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Total Return Swap Contracts (*)              
Amounts in thousands              
    Notional   Termination Fair Value  
Underlying Reference Entity Counterparty Amount   Date $  
Bovespa Future Index Goldman Sachs BRL 68,553 08/17/16 (3,071 )
Bovespa Future Index Goldman Sachs BRL 16,648 08/17/16 741  
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)         (2,330 )

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were all based
on the total return of underlying security at termination.

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Argentina $ 27,118 $ — $ — $ — $   27,118
Bangladesh   —   8,491   —   —     8,491
Brazil   153,436   —   1,959   —     155,395
Cambodia   —   3,151   —   —     3,151
Canada   1,135   —   —   —     1,135
Cayman Islands   —   578   —   —     578
Chile   16,947   —   —   —     16,947
China   100,367   263,146   4,439   —     367,952
Colombia   4,982   —   —   —     4,982
Czech Republic   —   3,333   —   —     3,333
Egypt   —   9,985   —   —     9,985
Greece   —   4,000   —   —     4,000
Guernsey   —   5,038   —   —     5,038
Hong Kong   19,875   111,978   2,140   —     133,993
Hungary   —   13,214   —   —     13,214
India   29,811   173,032   —   —     202,843
Indonesia   —   34,755   —   —     34,755
Jersey   —   3,298   —   —     3,298
Kazakhstan   1,042   —   —   —     1,042
Kenya   —   1,596   —   —     1,596
Kuwait   —   5,956   —   —     5,956
Luxembourg   3,305   —   —   —     3,305
Macao   —   12,733   —   —     12,733
Malaysia   369   15,234   —   —     15,603
Mexico   83,740   —   —   —     83,740
Morocco   —   1,953   —   —     1,953
Netherlands   6,264   2,130   —   —     8,394
Nigeria   435   9,140   —   —     9,575
Pakistan   —   21,113   —   —     21,113
Peru   8,868   —   —   —     8,868
Philippines   —   10,109   —   —     10,109
Poland   —   5,859   —   —     5,859
Qatar   —   5,301   —   —     5,301
Romania   —   4,698   —   —     4,698

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 93

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
            Fair Value                
                    Practical      
Portfolio Summary Level 1     Level 2   Level 3 Expedient (a)   Total  
Russia   40,008       60,684     —   —   100,692  
Singapore   2,325       —     —   —   2,325  
South Africa   20,068       56,688     —   —   76,756  
South Korea   28,144       287,858     —   —   316,002  
Spain   988       —     —   —   988  
Sri Lanka   —       2,089     —   —   2,089  
Switzerland   —       7,737     —   —   7,737  
Taiwan   35,113       189,215     —   —   224,328  
Thailand   —       54,286     —   —   54,286  
Togo   —       1,040     —   —   1,040  
Turkey   1,163       42,497     —   —   43,660  
Ukraine   3,401       6,309     —   —   9,710  
United Arab Emirates   —       11,841     —   —   11,841  
United Kingdom   —       9,902     —   —   9,902  
United States   175       2,183     —   —   2,358  
Vietnam   —       7,408     —   —   7,408  
Preferred Stocks 18,816     9,167   — — 27,983  
Certificates of Participation —     11,710   — — 11,710  
Warrants & Rights 56     3,799   — — 3,855  
Short-Term Investments —     6,998   — 81,483 88,481  
Other Securities —     —   — 61,498 61,498  
Total Investments 607,951   1,501,232   8,538 142,981 2,260,702  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 1,462     —   — — 1,462  
Foreign Currency Exchange Contracts 332     5,616   — — 5,948  
Total Return Swap Contracts —     741   — — 741  
Liabilities                            
Futures Contracts (2,840 )   —   — — (2,840 )
Foreign Currency Exchange Contracts (441 )   (3,416 ) — — (3,857 )
Total Return Swap Contracts —     (3,071 ) — — (3,071 )
Total Other Financial Instruments* $ (1,487 )   $ (130 ) $ — $ — $ (1,617 )

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

Amounts in thousands  
  Fair Value
Sector Exposure $

 

See accompanying notes which are an integral part of this quarterly report.

94 Russell Emerging Markets Fund

 

Russell Investment Company
Russell Emerging Markets Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Consumer Discretionary 265,668
Consumer Staples 167,491
Energy 205,960
Financial Services 546,776
Health Care 48,809
Materials and Processing 164,108
Producer Durables 103,343
Technology 419,841
Utilities 173,162
Certificates of Participation 11,710
Warrants and Rights 3,855
Short-Term Investments 88,481
Other Securities 61,498
Total Investments 2,260,702

 

See accompanying notes which are an integral part of this quarterly report.

Russell Emerging Markets Fund 95

 

Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 94.4%       Kimberly-Clark Corp. 22,069 2,859
Consumer Discretionary - 12.6%       Kraft Heinz Co. (The) 13,100 1,132
Advance Auto Parts, Inc. 11,977 2,034 Kroger Co. (The) 51,562 1,763
Amazon.com, Inc.(Æ) 31,185 23,664 Molson Coors Brewing Co. Class B 23,210 2,371
AutoZone, Inc.(Æ) 2,200 1,791 Mondelez International, Inc. Class A 500,553 22,014
Carnival Corp. 7,494 350 PepsiCo, Inc. 165,240 17,998
CBS Corp. Class B 23,776 1,242 Philip Morris International, Inc. 144,535 14,491
Charter Communications, Inc. Class A(Æ) 11,233 2,638 Procter & Gamble Co. (The) 51,457 4,404
Chipotle Mexican Grill, Inc. Class A(Æ) 17,187 7,287 Reynolds American, Inc. 31,314 1,568
Comcast Corp. Class A 330,345 22,216 Unilever NV 207,755 9,582
Costco Wholesale Corp. 26,428 4,419 Walgreens Boots Alliance, Inc. 9,505 753
CST Brands, Inc. 3,500 157 Whole Foods Market, Inc. 157,105 4,789
Delphi Automotive PLC 20,391 1,383       123,536
DISH Network Corp. Class A(Æ) 10,810 577        
Dollar General Corp. 8,600 815 Energy - 6.5%      
Dollar Tree, Inc.(Æ) 5,970 575 Anadarko Petroleum Corp. 10,588 577
DR Horton, Inc. 42,882 1,410 Apache Corp. 7,974 419
eBay, Inc.(Æ) 5,789 180 Baker Hughes, Inc. 16,422 785
Estee Lauder Cos., Inc. (The) Class A 9,487 881 BP PLC - ADR 86,933 2,990
Expedia, Inc. 5,900 688 Cabot Oil & Gas Corp. 42,924 1,059
Ford Motor Co. 516,009 6,533 Cheniere Energy, Inc.(Æ) 5,800 243
Gap, Inc. (The) 100,470 2,591 Chevron Corp. 149,973 15,369
General Motors Co. 40,601 1,281 Concho Resources, Inc.(Æ) 9,484 1,178
Harman International Industries, Inc. 16,471 1,361 ConocoPhillips 100,347 4,096
Home Depot, Inc. (The) 57,634 7,967 Core Laboratories NV 107,213 12,524
Interpublic Group of Cos., Inc. (The) 14,867 343 Devon Energy Corp. 11,954 458
Johnson Controls, Inc. 70,607 3,242 Diamondback Energy, Inc.(Æ) 8,621 757
Lennar Corp. Class A 99,928 4,677 EOG Resources, Inc. 32,555 2,660
Liberty Global PLC LiLAC(Æ) 45,171 1,581 EQT Corp. 16,959 1,236
Lowe's Cos., Inc. 185,439 15,258 Exxon Mobil Corp. 156,580 13,928
Macy's, Inc. 12,300 441 Halliburton Co. 276,463 12,070
McDonald's Corp. 10,521 1,238 Kinder Morgan, Inc. 27,749 564
Nike, Inc. Class B 225,428 12,511 Marathon Petroleum Corp. 3,291 130
O'Reilly Automotive, Inc.(Æ) 20,764 6,035 Occidental Petroleum Corp. 120,217 8,984
Priceline Group, Inc. (The)(Æ) 6,375 8,611 Phillips 66 98,284 7,475
PulteGroup, Inc. 44,100 934 Pioneer Natural Resources Co. 55,019 8,944
Ross Stores, Inc. 18,800 1,162 Schlumberger, Ltd. 242,462 19,523
Royal Caribbean Cruises, Ltd. 22,646 1,641 Spectra Energy Corp. 16,266 585
Starbucks Corp. 303,091 17,594 Valero Energy Corp. 20,857 1,090
Target Corp. 98,821 7,444 Williams Cos., Inc. (The) 14,626 351
Time Warner, Inc. 64,864 4,972       117,995
TJX Cos., Inc. 174,672 14,274        
Twenty-First Century Fox, Inc. Class A 111,606 2,973 Financial Services - 18.7%      
VF Corp. 35,920 2,243 Alliance Data Systems Corp.(Æ) 6,051 1,402
Wal-Mart Stores, Inc. 148,155 10,811 American Express Co. 99,968 6,444
Walt Disney Co. (The) 80,473 7,721 American International Group, Inc. 172,145 9,372
Whirlpool Corp. 18,321 3,524 American Tower Corp.(ö) 157,376 18,219
Wyndham Worldwide Corp. 98,965 7,029 Ameriprise Financial, Inc. 25,963 2,488
Yum! Brands, Inc. 29,534 2,641 Aon PLC 38,352 4,106
      230,940 Arthur J Gallagher & Co. 10,292 506
        AvalonBay Communities, Inc.(ö) 7,200 1,337
Consumer Staples - 6.8%       Bank of America Corp. 1,268,133 18,375
Altria Group, Inc. 122,576 8,298 Bank of New York Mellon Corp. (The) 16,659 656
Archer-Daniels-Midland Co. 26,319 1,186 BB&T Corp. 6,074 224
Coca-Cola Co. (The) 76,087 3,320 Berkshire Hathaway, Inc. Class B(Æ) 148,726 21,457
Colgate-Palmolive Co. 109,113 8,121 BlackRock, Inc. Class A 6,333 2,319
Constellation Brands, Inc. Class A 18,440 3,036 Boston Properties, Inc.(ö) 4,641 660
CVS Health Corp. 149,152 13,829 Capital One Financial Corp. 159,825 10,721
Dr Pepper Snapple Group, Inc. 14,940 1,472 Charles Schwab Corp. (The) 37,286 1,060
Hershey Co. (The) 4,970 550 Chubb, Ltd. 122,723 15,372

 

See accompanying notes which are an integral part of this quarterly report.

96 Russell Tax-Managed U.S. Large Cap Fund

 

Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Citigroup, Inc. 325,638 14,266 Bristol-Myers Squibb Co. 140,633 10,521
CME Group, Inc. Class A 2,510 257 Cardinal Health, Inc. 78,112 6,530
Comerica, Inc. 60,506 2,737 Celgene Corp.(Æ) 44,347 4,975
Discover Financial Services 29,578 1,681 Cerner Corp.(Æ) 130,458 8,139
Equifax, Inc. 11,321 1,500 Cigna Corp. 94 12
Equinix, Inc.(ö) 29,524 11,009 Eli Lilly & Co. 47,877 3,969
Everest Re Group, Ltd. 900 170 Express Scripts Holding Co.(Æ) 9,902 753
Extra Space Storage, Inc.(ö) 6,120 526 Gilead Sciences, Inc. 46,010 3,656
Fidelity National Information Services, Inc. 31,196 2,481 HCA Holdings, Inc.(Æ) 4,616 356
Fifth Third Bancorp 11,520 219 Humana, Inc. 17,180 2,964
First Republic Bank 2,386 171 Illumina, Inc.(Æ) 4,189 697
FleetCor Technologies, Inc.(Æ) 41,621 6,313 Intuitive Surgical, Inc.(Æ) 104 72
Goldman Sachs Group, Inc. (The) 59,155 9,394 Johnson & Johnson 241,425 30,234
Hartford Financial Services Group, Inc. 55,496 2,212 McKesson Corp. 14,469 2,815
Highwoods Properties, Inc.(ö) 8,040 448 Medtronic PLC 164,491 14,414
Intercontinental Exchange, Inc. 53,228 14,063 Merck & Co., Inc. 242,975 14,253
Invesco, Ltd. 31,200 910 PerkinElmer, Inc. 2,100 120
JPMorgan Chase & Co. 266,515 17,049 Pfizer, Inc. 546,191 20,149
KeyCorp 126,660 1,482 Regeneron Pharmaceuticals, Inc.(Æ) 16,716 7,106
Kilroy Realty Corp.(ö) 9,100 666 Sanofi - ADR 40,450 1,724
Loews Corp. 163,815 6,770 Shire PLC - ADR 1,161 225
M&T Bank Corp. 1,250 143 St. Jude Medical, Inc. 77,635 6,447
Markel Corp.(Æ) 13,773 13,067 Stryker Corp. 13,945 1,622
MasterCard, Inc. Class A 15,196 1,447 Teva Pharmaceutical Industries, Ltd. - ADR 12,650 677
MetLife, Inc. 118,150 5,050 Thermo Fisher Scientific, Inc. 82,339 13,079
Morgan Stanley 85,829 2,466 UnitedHealth Group, Inc. 124,574 17,839
Northern Trust Corp. 1,827 124 Vertex Pharmaceuticals, Inc.(Æ) 17,059 1,655
PayPal Holdings, Inc.(Æ) 838 31 Zoetis, Inc. Class A 13,700 691
PNC Financial Services Group, Inc. (The) 22,409 1,852       250,272
Prologis, Inc.(ö) 30,162 1,644        
Prudential Financial, Inc. 7,700 580 Materials and Processing - 3.7%      
Raymond James Financial, Inc. 6,917 380 Air Products & Chemicals, Inc. 65,233 9,747
Realogy Holdings Corp. 301,902 9,356 Ball Corp. 3,000 212
Regions Financial Corp. 20,514 188 CRH PLC - ADR 278,001 8,551
Simon Property Group, Inc.(ö) 9,970 2,264 Crown Holdings, Inc.(Æ) 24,853 1,317
SL Green Realty Corp.(ö) 6,960 820 Dow Chemical Co. (The) 167,787 9,005
State Street Corp. 218,177 14,352 Eastman Chemical Co. 10,548 688
SunTrust Banks, Inc. 6,350 269 Ecolab, Inc. 138,973 16,452
SVB Financial Group(Æ) 5,741 577 EI du Pont de Nemours & Co. 25,098 1,736
Synchrony Financial 482,298 13,446 Ingersoll-Rand PLC 16,221 1,075
TD Ameritrade Holding Corp. 6,600 200 Ingevity Corp.(Æ) 4,417 169
Travelers Cos., Inc. (The) 657 76 International Paper Co. 69,468 3,182
US Bancorp 155,798 6,570 Martin Marietta Materials, Inc. 6,899 1,398
Visa, Inc. Class A 285,546 22,287 Masco Corp. 34,250 1,249
Wells Fargo & Co. 620,323 29,757 Monsanto Co. 48,194 5,146
XL Group, Ltd. 142,718 4,939 Mosaic Co. (The) 44,098 1,191
      340,927 PPG Industries, Inc. 4,260 446
        Praxair, Inc. 36,681 4,275
Health Care - 13.7%       Rio Tinto PLC - ADR 37,916 1,244
Abbott Laboratories 37,121 1,661 WestRock Co. 26,503 1,137
AbbVie, Inc. 170,304 11,279       68,220
Aetna, Inc. 31,481 3,627        
Alexion Pharmaceuticals, Inc.(Æ) 7,010 902 Producer Durables - 11.2%      
Allergan PLC(Æ) 70,449 17,820 3M Co. 5,520 984
Amgen, Inc. 108,322 18,635 Accenture PLC Class A 43,472 4,904
Anthem, Inc. 101,317 13,307 Allegion PLC 18,766 1,358
Baxter International, Inc. 7,837 376 Automatic Data Processing, Inc. 80,628 7,172
Becton Dickinson and Co. 3,015 531 B/E Aerospace, Inc. 123,823 5,923
Biogen, Inc.(Æ) 11,230 3,256 Boeing Co. (The) 202 27
Boston Scientific Corp.(Æ) 131,115 3,184 Canadian Pacific Railway, Ltd. 2,520 377

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed U.S. Large Cap Fund 97

 

Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)    
    Principal Fair       Principal   Fair
  Amount ($) or Value     Amount ($) or   Value
    Shares $       Shares   $
CSX Corp. 63,100 1,788 LinkedIn Corp. Class A(Æ)   23,801   4,587
Danaher Corp. 4,171 340 Microsoft Corp.   689,271   39,068
Deere & Co. 1,500 117 NXP Semiconductors NV(Æ)   73,855   6,210
Delta Air Lines, Inc. 293,692 11,381 Oracle Corp.   367,124   15,067
Eaton Corp. PLC 35,449 2,248 QUALCOMM, Inc.   172,218   10,777
Emerson Electric Co. 13,090 732 Red Hat, Inc.(Æ)   91,858   6,916
FedEx Corp. 1,662 269 Salesforce.com, Inc.(Æ)   90,641   7,414
Fluor Corp. 3,136 168 SAP SE - ADR   63,366   5,538
Fortive Corp. 2,085 100 TE Connectivity, Ltd.   26,465   1,595
General Dynamics Corp. 32,339 4,750 Texas Instruments, Inc.   67,206   4,688
General Electric Co. 505,693 15,747 Western Digital Corp.   487   23
Honeywell International, Inc. 360,033 41,883 Xilinx, Inc.   5,800   296
Illinois Tool Works, Inc. 1,831 211 Yahoo!, Inc.(Æ)   115   4
Kansas City Southern 106,258 10,212           304,342
L-3 Communications Holdings, Inc. Class 3 8,688 1,317            
Lockheed Martin Corp. 3,081 779 Utilities - 4.5%          
Mettler-Toledo International, Inc.(Æ) 30,938 12,722 American Electric Power Co., Inc.   29,948   2,075
Norfolk Southern Corp. 28,552 2,563 AT&T, Inc.   525,740   22,759
Northrop Grumman Corp. 10,650 2,307 California Resources Corp.(Æ)   1,158   12
PACCAR, Inc. 46,767 2,758 Calpine Corp.(Æ)   229,334   3,151
Parker-Hannifin Corp. 800 91 CMS Energy Corp.   37,178   1,680
Pentair PLC 6,066 387 Dominion Resources, Inc.   4,273   333
Raytheon Co. 78,946 11,015 Duke Energy Corp.   16,508   1,413
Sensata Technologies Holding NV(Æ) 269,983 10,238 Edison International   22,508   1,742
Snap-on, Inc. 778 122 Entergy Corp.   106,096   8,635
Southwest Airlines Co. 197,513 7,310 Exelon Corp.   11,196   417
Stanley Black & Decker, Inc. 80,523 9,800 NextEra Energy, Inc.   44,553   5,716
TopBuild Corp.(Æ) 3,805 144 NiSource, Inc.   38,538   989
TransDigm Group, Inc.(Æ) 43,091 12,045 PG&E Corp.   36,220   2,316
Tyco International PLC 108,674 4,952 PPL Corp.   47,857   1,805
Union Pacific Corp. 57,199 5,322 Public Service Enterprise Group, Inc.   22,380   1,030
United Continental Holdings, Inc.(Æ) 3,363 158 Sempra Energy   14,900   1,667
United Parcel Service, Inc. Class B 978 106 Southern Co. (The)   28,934   1,548
United Technologies Corp. 82,711 8,904 T-Mobile US, Inc.(Æ)   8,037   372
Waste Management, Inc. 4,229 280 Verizon Communications, Inc.   414,002   22,940
WW Grainger, Inc. 2,470 541 Xcel Energy, Inc.   41,419   1,822
      204,552           82,422
 
Technology - 16.7%       Total Common Stocks          
Adobe Systems, Inc.(Æ) 118,355 11,582 (cost $1,296,562)         1,723,206
Alphabet, Inc. Class A(Æ) 10,808 8,553            
Alphabet, Inc. Class C(Æ) 52,710 40,523 Short-Term Investments - 5.4%          
Analog Devices, Inc. 14,338 915 Russell U.S. Cash Management Fund   91,284,994 (8) 91,285
Apple, Inc. 517,653 53,945 United States Treasury Bills          
Applied Materials, Inc. 23,100 607      0.303% due 08/11/16(ç)(~)(§)   4,500   4,500
ARM Holdings PLC - ADR 71,538 4,747      0.241% due 09/08/16(ç)(~)(§)   2,400   2,399
Broadcom, Ltd. 43,243 7,005 Total Short-Term Investments          
CDK Global Inc. 996 58 (cost $98,184)         98,184
Cisco Systems, Inc. 307,771 9,396            
Cognizant Technology Solutions Corp. Class       Total Investments 99.8%          
     A(Æ) 31,157 1,791 (identified cost $1,394,746)         1,821,390
EMC Corp. 332,529 9,404            
Facebook, Inc. Class A(Æ) 161,203 19,980 Other Assets and Liabilities, Net          
Hewlett Packard Enterprise Co. 248,993 5,234 - 0.2%       4,210
HP, Inc. 96,699 1,355 Net Assets - 100.0%         1,825,600
Intel Corp. 186,049 6,486            
International Business Machines Corp. 50,616 8,130            
Intuit, Inc. 72,241 8,018            
KLA-Tencor Corp. 5,800 439            
Lam Research Corp. 44,456 3,991            

 

See accompanying notes which are an integral part of this quarterly report.

98 Russell Tax-Managed U.S. Large Cap Fund

 

Russell Investment Company
Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                
 
Amounts in thousands (except contract amounts)                
                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
S&P 500 E-Mini Index Futures 909 USD 98,545 09/16 3,055
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               3,055

 

Presentation of Portfolio Holdings                  
 
Amounts in thousands                      
 
          Fair Value            
                Practical    
Portfolio Summary   Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Consumer Discretionary   $ 230,940 $ — $ — $ — $ 230,940
Consumer Staples     123,536   —   —   —   123,536
Energy     117,995   —   —   —   117,995
Financial Services     340,927   —   —   —   340,927
Health Care     250,272   —   —   —   250,272
Materials and Processing     68,220   —   —   —   68,220
Producer Durables     204,552   —   —   —   204,552
Technology     304,342   —   —   —   304,342
Utilities     82,422   —   —   —   82,422
Short-Term Investments   — 6,899 — 91,285 98,184
Total Investments 1,723,206 6,899 — 91,285 1,821,390
 
 
Other Financial Instruments                      
Assets                      
Futures Contracts   3,055 — — — 3,055
 
Total Other Financial Instruments*   $ 3,055 $ — $ — $ — $ 3,055

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed U.S. Large Cap Fund 99

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 95.4%       Liberty SiriusXM Group Class C(Æ) 2,096 74
Consumer Discretionary - 13.8%       Liberty TripAdvisor Holdings, Inc. Class      
1-800-Flowers.com, Inc. Class A(Æ) 14,360 131      A(Æ) 6,997 166
Aaron's, Inc. Class A 5,967 143 LKQ Corp.(Æ) 80,716 2,776
American Axle & Manufacturing Holdings,       Lumber Liquidators Holdings, Inc.(Æ)(Ñ) 87,236 1,311
     Inc.(Æ) 23,452 408 Macy's, Inc. 3,580 128
Arctic Cat, Inc.(Æ)(Ñ) 66,477 1,038 Matthews International Corp. Class A 11,725 705
Barnes & Noble Education, Inc.(Æ) 7,605 88 Monro Muffler Brake, Inc. 24,676 1,545
Barnes & Noble, Inc. 5,174 68 Motorcar Parts of America, Inc.(Æ) 41,326 1,158
Beazer Homes USA, Inc.(Æ) 85,915 824 Murphy USA, Inc.(Æ) 1,877 144
Big Lots, Inc. 7,554 402 National Presto Industries, Inc. 425 38
Bloomin' Brands, Inc. 10,325 186 Noodles & Co. Class A(Æ)(Ñ) 87,195 644
Blue Nile, Inc.(Æ) 13,106 381 Nutrisystem, Inc. 7,422 219
Bob Evans Farms, Inc. 25,012 920 NVR, Inc.(Æ) 62 106
Brinker International, Inc. 5,264 248 Ollie's Bargain Outlet Holdings, Inc.(Æ)(Ñ) 24,253 634
Buffalo Wild Wings, Inc.(Æ) 9,222 1,549 Outfront Media, Inc.(ö) 32,401 754
Burlington Stores, Inc.(Æ) 16,125 1,234 Oxford Industries, Inc. 10,536 602
Cabela's, Inc.(Æ) 27,839 1,437 Panera Bread Co. Class A(Æ) 414 91
Caesars Acquisition Co. Class A(Æ)(Ñ) 28,853 310 Performance Sports Group, Ltd.(Æ)(Ñ) 81,826 272
Callaway Golf Co. 14,281 153 Planet Fitness, Inc. Class A(Æ)(Ñ) 12,789 262
Capella Education Co. 9,579 573 Polaris Industries, Inc.(Ñ) 1,900 188
CarMax, Inc.(Æ)(Ñ) 3,653 213 Pool Corp. 18,305 1,872
Carter's, Inc. 19,807 2,005 PulteGroup, Inc. 8,808 186
Cheesecake Factory, Inc. (The) 16,428 850 Red Robin Gourmet Burgers, Inc.(Æ) 2,684 130
Chico's FAS, Inc. 10,882 131 Ross Stores, Inc. 4,846 300
Cimpress NV(Æ) 544 51 Sally Beauty Holdings, Inc.(Æ) 78,068 2,290
Columbia Sportswear Co. 10,223 585 Scholastic Corp. 34,032 1,399
Cooper Tire & Rubber Co. 4,271 141 Service Corp. International 12,050 334
Coty, Inc. Class A(Ñ) 1,704 46 ServiceMaster Global Holdings, Inc.(Æ) 19,855 751
Dana Holding Corp. 9,122 124 Shoe Carnival, Inc. 6,564 173
Denny's Corp.(Æ) 44,745 499 Shutterfly, Inc.(Æ) 27,816 1,479
Domino's Pizza, Inc. 9,020 1,329 Signet Jewelers, Ltd. 2,947 259
Dorman Products, Inc.(Æ)(Ñ) 14,563 928 Skechers U.S.A., Inc. Class A(Æ) 4,706 113
Duluth Holdings, Inc. Class B(Æ) 12,043 299 Smith & Wesson Holding Corp.(Æ)(Ñ) 1,633 48
Eldorado Resorts, Inc.(Æ) 6,607 95 SodaStream International, Ltd.(Æ)(Ñ) 15,959 384
Ethan Allen Interiors, Inc.(Ñ) 45,899 1,594 Star Buffet, Inc. Class A(Æ) 12,497 378
First Cash Financial Services, Inc. 22,620 1,161 Sturm Ruger & Co., Inc.(Ñ) 3,231 220
Five Below, Inc.(Æ) 40,038 2,042 TEGNA, Inc. 6,655 146
Foot Locker, Inc. 3,318 198 Tenneco, Inc.(Æ) 20,357 1,151
Fortune Brands Home & Security, Inc. 20,470 1,295 Tiffany & Co. 641 41
FTD Cos., Inc.(Æ) 46,198 1,169 Toll Brothers, Inc.(Æ) 39,816 1,115
Gannett Co., Inc. 24,426 312 Tupperware Brands Corp.(Ñ) 2,897 182
Genesco, Inc.(Æ) 2,907 202 Ulta Salon Cosmetics & Fragrance, Inc.(Æ) 3,333 871
Gentex Corp. 12,980 229 Vail Resorts, Inc. 589 84
Gentherm, Inc.(Æ) 70,703 2,373 Vera Bradley, Inc.(Æ) 22,851 333
Goodyear Tire & Rubber Co. (The) 9,881 283 Vista Outdoor, Inc.(Æ) 856 43
Grand Canyon Education, Inc.(Æ) 5,539 233 WABCO Holdings, Inc.(Æ) 700 70
Hanesbrands, Inc. 10,236 273 Wyndham Worldwide Corp. 2,673 190
Horizon Global Corp.(Æ) 8,937 117       56,698
HSN, Inc. 789 40        
Interpublic Group of Cos., Inc. (The) 14,186 327 Consumer Staples - 3.4%      
Jack in the Box, Inc. 445 39 Andersons, Inc. (The) 9,345 346
Jamba, Inc.(Æ) 28,589 309 Cal-Maine Foods, Inc.(Æ) 25,265 1,059
John Wiley & Sons, Inc. Class A 3,050 176 Casey's General Stores, Inc. 17,162 2,292
Lamar Advertising Co. Class A(ö) 6,641 451 Diplomat Pharmacy, Inc.(Æ)(Ñ) 10,603 381
Leggett & Platt, Inc. 1,002 53 Hain Celestial Group, Inc. (The)(Æ) 5,750 303
Liberty Broadband Corp. Class A(Æ) 262 16 Herbalife, Ltd.(Æ)(Ñ) 1,246 85
Liberty Broadband Corp. Class C(Æ) 633 40 JM Smucker Co. (The) 1,628 251
Liberty Media Group Class C(Æ) 524 12 Lancaster Colony Corp. 13,882 1,804
Liberty SiriusXM Group Class A(Æ) 166 6 Lifevantage Corp.(Æ) 12,092 169

 

See accompanying notes which are an integral part of this quarterly report.

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

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
MGP Ingredients, Inc. 5,280 227 American Homes 4 Rent Class A(ö) 6,889 149
Natural Health Trends Corp. 24,479 822 American National Insurance Co. 1,564 179
Omega Protein Corp.(Æ) 12,432 280 Arch Capital Group, Ltd.(Æ) 2,102 153
Pinnacle Foods, Inc. 285 14 Ares Capital Corp.(Ñ) 2,664 40
Post Holdings, Inc.(Æ) 5,407 469 Argo Group International Holdings, Ltd. 29,156 1,513
Rite Aid Corp.(Æ) 11,272 79 Armada Hoffler Properties, Inc.(ö) 19,751 296
Safeway, Inc. 9,450 5 Artisan Partners Asset Management, Inc.      
Sanderson Farms, Inc.(Ñ) 19,716 1,727      Class A 17,966 502
Sprouts Farmers Market, Inc.(Æ)(Ñ) 25,769 596 Ashford Hospitality Prime, Inc.(ö) 8,491 128
SUPERVALU, Inc.(Æ) 130,948 639 Ashford Hospitality Trust, Inc.(ö) 46,366 276
TreeHouse Foods, Inc.(Æ) 12,630 1,303 Assurant, Inc. 5,539 460
WhiteWave Foods Co. (The) Class A(Æ) 19,328 1,072 Assured Guaranty, Ltd. 12,463 334
      13,923 Astoria Financial Corp. 9,124 134
        Axis Capital Holdings, Ltd. 5,244 291
Energy - 4.0%       Banco Latinoamericano de Comercio Exterior      
Atwood Oceanics, Inc.(Æ) 30,789 329      SA Class E 6,718 184
Bill Barrett Corp.(Æ) 124,924 746 Bancorp, Inc. (The)(Æ) 34,471 183
CARBO Ceramics, Inc.(Æ)(Ñ) 18,157 256 BancorpSouth, Inc. 55,588 1,324
Chesapeake Energy Corp.(Æ)(Ñ) 50,888 276 Bank of Hawaii Corp. 1,087 75
CONSOL Energy, Inc.(Æ)(Ñ) 11,125 216 Bank of the Ozarks, Inc.(Ñ) 11,236 404
Diamondback Energy, Inc.(Æ) 7,854 689 BankUnited, Inc. 732 22
Dril-Quip, Inc.(Æ) 14,450 787 BofI Holding, Inc.(Æ)(Ñ) 46,901 789
Energen Corp.(Æ) 5,905 280 Brandywine Realty Trust(ö) 5,325 90
Exterran Corp.(Æ) 3,009 38 Broadridge Financial Solutions, Inc. 5,818 394
First Solar, Inc.(Æ) 7,131 333 Camden Property Trust(ö) 3,242 290
FMC Technologies, Inc.(Æ) 3,880 98 Care Capital Properties, Inc.(ö) 715 21
Green Plains, Inc. 14,705 334 Cash America International, Inc. 11,666 500
Gulfport Energy Corp.(Æ) 21,249 618 Cathay General Bancorp 2,282 68
Helix Energy Solutions Group, Inc.(Æ) 67,777 538 CBOE Holdings, Inc. 12,705 874
Helmerich & Payne, Inc.(Ñ) 19,029 1,179 Cedar Realty Trust, Inc.(ö) 20,389 164
Matador Resources Co.(Æ)(Ñ) 32,317 682 CenterState Banks, Inc. 62,231 1,037
McDermott International, Inc.(Æ) 287,421 1,489 Central Pacific Financial Corp. 8,782 215
Memorial Resource Development Corp.(Æ) 10,670 160 City Holding Co. 1,479 69
Noble Energy, Inc. 2,014 72 CNO Financial Group, Inc. 2,192 38
Oceaneering International, Inc. 3,328 93 Colony Capital, Inc. Class A(ö) 14,185 252
Oil States International, Inc.(Æ) 20,713 640 Columbia Banking System, Inc. 5,350 162
PBF Energy, Inc. Class A 40,744 910 Community Bank System, Inc. 28,319 1,250
PDC Energy, Inc.(Æ) 8,897 487 CorEnergy Infrastructure Trust, Inc.(Ñ)(ö) 5,405 159
QEP Resources, Inc.(Æ) 12,477 227 CoreSite Realty Corp. Class A(ö) 1,911 158
REX American Resources Corp.(Æ) 12,011 790 Corrections Corp. of America(ö) 5,353 172
RSP Permian, Inc.(Æ) 45,955 1,652 Cousins Properties, Inc.(ö) 19,037 203
Seadrill, Ltd.(Æ)(Ñ) 15,787 47 Cowen Group, Inc. Class A(Æ)(Ñ) 12,903 40
Southwestern Energy Co.(Æ)(Ñ) 18,014 263 CubeSmart(ö) 25,890 769
SunPower Corp. Class A(Æ)(Ñ) 7,412 108 CVB Financial Corp. 10,947 180
Synergy Resources Corp.(Æ) 121,048 788 CyrusOne, Inc.(ö) 3,440 189
Tesoro Corp. 3,098 236 DCT Industrial Trust, Inc.(ö) 61,545 3,091
Transocean, Ltd.(Æ) 50,768 558 Diamond Hill Investment Group, Inc. 1,218 233
Willbros Group, Inc.(Æ) 97,763 200 DiamondRock Hospitality Co.(ö) 18,853 185
World Fuel Services Corp. 3,375 161 Douglas Emmett, Inc.(ö) 3,358 128
      16,280 Duke Realty Corp.(ö) 9,864 284
        DuPont Fabros Technology, Inc.(ö) 2,125 102
Financial Services - 25.1%       E*Trade Financial Corp.(Æ) 35,519 891
Alexandria Real Estate Equities, Inc.(ö) 2,082 234 East West Bancorp, Inc. 11,373 389
Ally Financial, Inc. 12,250 221 Eaton Vance Corp. 4,476 169
Altisource Portfolio Solutions SA(Æ)(Ñ) 16,217 377 Education Realty Trust, Inc.(ö) 69,748 3,358
Altisource Residential Corp.(ö) 4,184 40 Endurance Specialty Holdings, Ltd. 21,813 1,475
Ambac Financial Group, Inc.(Æ) 14,068 256 Enova International, Inc. Class W(Æ) 30,176 274
American Equity Investment Life Holding       EPR Properties(ö) 1,198 101
Co. 104,102 1,658 Equifax, Inc. 3,695 489
American Financial Group, Inc. 4,297 314 Equinix, Inc.(ö) 679 253

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed U.S. Mid & Small Cap Fund 101

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Equity Commonwealth(ö) 5,469 164 MSCI, Inc. Class A 12,338 1,062
Equity LifeStyle Properties, Inc. Class A(ö) 1,461 120 National Health Investors, Inc.(ö) 13,762 1,081
Euronet Worldwide, Inc.(Æ) 11,467 874 National Retail Properties, Inc.(ö) 3,336 177
Everest Re Group, Ltd. 1,700 321 National Storage Affiliates Trust(ö) 1,835 39
Extra Space Storage, Inc.(ö) 3,027 260 Navigators Group, Inc. (The) 2,541 238
Ezcorp, Inc. Class A(Æ) 5,807 53 Nelnet, Inc. Class A 9,341 377
FactSet Research Systems, Inc. 3,778 650 NorthStar Realty Finance Corp.(ö) 20,791 279
Fair Isaac Corp. 18,693 2,367 Northwest Bancshares, Inc. 8,090 121
FCB Financial Holdings, Inc. Class A(Æ) 894 31 OFG Bancorp 84,045 892
Federal Agricultural Mortgage Corp. Class C 8,229 316 Old National Bancorp 72,361 952
Federal Realty Investment Trust(ö) 1,689 287 OM Asset Management PLC 50,154 702
FelCor Lodging Trust, Inc.(ö) 81,009 514 OneBeacon Insurance Group, Ltd. Class A 25,513 357
Fidelity & Guaranty Life(Ñ) 14,310 313 Opus Bank 1,361 44
First BanCorp(Æ) 9,552 44 Oritani Financial Corp. 8,387 136
First Commonwealth Financial Corp. 27,032 261 PacWest Bancorp 26,097 1,079
First Financial Bancorp 10,984 234 Paramount Group, Inc.(ö) 22,331 394
First Industrial Realty Trust, Inc.(ö) 107,283 3,162 Pebblebrook Hotel Trust(ö) 6,610 196
First Midwest Bancorp, Inc. 7,424 139 People's Utah Bancorp 5,621 100
First NBC Bank Holding Co.(Æ) 14,585 278 Piedmont Office Realty Trust, Inc. Class A(ö) 10,158 223
First Niagara Financial Group, Inc. 18,647 190 Popular, Inc. 35,782 1,206
First Republic Bank 47,190 3,382 Post Properties, Inc.(ö) 3,782 241
Fiserv, Inc.(Æ) 25,252 2,787 Preferred Apartment Communities, Inc. Class      
FNB Corp. 22,890 274      A(ö) 5,237 78
FNF Group 7,383 278 Primerica, Inc. 2,921 150
FNFV Group(Æ) 2,908 35 PrivateBancorp, Inc. Class A 6,176 273
GAMCO Investors, Inc. Class A 7,201 246 ProAssurance Corp. 759 39
Genworth Financial, Inc. Class A(Æ) 108,399 310 PS Business Parks, Inc.(ö) 3,191 354
Glacier Bancorp, Inc. 40,557 1,119 QTS Realty Trust, Inc. Class A(ö) 1,901 109
Global Payments, Inc. 764 57 Radian Group, Inc. 48,956 632
Gramercy Property Trust(ö) 17,478 175 RAIT Financial Trust(ö) 12,737 40
Great Western Bancorp, Inc. 2,746 91 Raymond James Financial, Inc. 4,148 228
Green Dot Corp. Class A(Æ) 27,840 674 Rayonier, Inc.(ö) 14,302 389
Hanover Insurance Group, Inc. (The) 47,336 3,898 RE/MAX Holdings, Inc. Class A 6,188 268
Hartford Financial Services Group, Inc. 4,282 171 Reinsurance Group of America, Inc. Class A 2,529 251
Healthcare Realty Trust, Inc.(ö) 49,784 1,800 RenaissanceRe Holdings, Ltd. 746 88
HFF, Inc. Class A(Æ) 3,658 103 Resource Capital Corp.(ö) 8,327 113
Highwoods Properties, Inc.(ö) 8,664 483 Retail Opportunity Investments Corp.(ö) 9,870 225
Home BancShares, Inc. 30,544 637 Retail Properties of America, Inc. Class A(ö) 145,193 2,560
Houlihan Lokey, Inc. Class A 15,496 355 RLJ Lodging Trust(ö) 8,498 202
Huntington Bancshares, Inc. 23,662 225 RMR Group, Inc. (The) Class A 7,070 241
Iberiabank Corp. 422 26 Ryman Hospitality Properties, Inc.(ö) 4,049 228
Iron Mountain, Inc.(ö) 6,514 268 Selective Insurance Group, Inc. 86,377 3,383
iStar, Inc.(ö) 16,287 169 Seritage Growth Properties(ö) 1,347 67
Jack Henry & Associates, Inc. 502 45 ServisFirst Bancshares, Inc. 382 19
KeyCorp 23,921 280 Signature Bank(Æ) 9,333 1,122
Kilroy Realty Corp.(ö) 3,359 246 SL Green Realty Corp.(ö) 1,767 208
LaSalle Hotel Properties(ö) 6,953 192 SLM Corp.(Æ) 142,479 1,024
Lazard, Ltd. Class A 16,836 602 South State Corp. 17,665 1,288
LendingTree, Inc.(Æ) 1,224 124 Sovran Self Storage, Inc.(ö) 10,545 1,080
Live Oak Bancshares, Inc.(Ñ) 5,038 66 State Bank Financial Corp. 57,147 1,250
Macerich Co. (The)(ö) 2,066 184 Sterling Bancorp 84,983 1,435
Mack-Cali Realty Corp.(ö) 2,673 75 Summit Hotel Properties, Inc.(ö) 10,330 146
Manning & Napier, Inc. Class A 4,681 36 Sun Communities, Inc.(ö) 27,433 2,171
Marcus & Millichap, Inc.(Æ) 10,002 268 SVB Financial Group(Æ) 18,910 1,899
Markel Corp.(Æ) 428 406 Tanger Factory Outlet Centers, Inc.(ö) 9,523 397
MarketAxess Holdings, Inc. 1,168 189 Taubman Centers, Inc.(ö) 5,318 430
MBIA, Inc.(Æ) 43,396 366 TCF Financial Corp. 15,910 216
MGIC Investment Corp.(Æ) 364,429 2,620 Texas Capital Bancshares, Inc.(Æ) 2,073 101
Mid-America Apartment Communities, Inc.       TriState Capital Holdings, Inc.(Æ) 3,143 45
     (ö) 14,562 1,544 UMB Financial Corp. 17,602 975

 

See accompanying notes which are an integral part of this quarterly report.

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

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Union Bankshares Corp. 34,359 922 Premier, Inc. Class A(Æ) 33,387 1,092
United Community Banks, Inc. 9,570 184 Prestige Brands Holdings, Inc.(Æ) 175 9
United Development Funding IV(Ñ)(ö) 34,187 109 PTC Therapeutics, Inc.(Æ)(Ñ) 14,915 89
Universal Insurance Holdings, Inc.(Ñ) 8,695 189 Quality Systems, Inc.(Æ) 2,976 36
Urstadt Biddle Properties, Inc. Class A(ö) 5,742 142 ResMed, Inc. 645 44
Ventas, Inc.(ö) 2,256 172 Retrophin, Inc.(Æ) 11,497 206
Voya Financial, Inc. 11,360 291 Sarepta Therapeutics, Inc.(Æ)(Ñ) 13,002 329
Waddell & Reed Financial, Inc. Class A 6,577 120 Seattle Genetics, Inc.(Æ)(Ñ) 4,553 219
Webster Financial Corp. 33,478 1,204 Spark Therapeutics, Inc.(Æ)(Ñ) 5,664 328
White Mountains Insurance Group, Ltd. 65 53 Teleflex, Inc. 4,569 824
WisdomTree Investments, Inc.(Ñ) 27,172 270 United Therapeutics Corp.(Æ) 3,793 459
World Acceptance Corp.(Æ) 5,306 231 US Physical Therapy, Inc. 26,966 1,608
WR Berkley Corp. 3,831 223 VCA, Inc.(Æ) 70,284 5,014
WSFS Financial Corp. 8,031 283 VWR Corp.(Æ) 33,782 1,058
Zions Bancorporation 8,633 241 WebMD Health Corp. Class A(Æ) 12,527 764
      102,890 WellCare Health Plans, Inc.(Æ) 22,405 2,393
        Zimmer Biomet Holdings, Inc. 2,883 378
Health Care - 11.0%             44,935
Acadia Healthcare Co., Inc.(Æ) 12,649 715        
Akorn, Inc.(Æ) 90,233 3,089 Materials and Processing - 8.1%      
Albany Molecular Research, Inc.(Æ)(Ñ) 48,591 702 AAON, Inc. 11,226 297
Alere, Inc.(Æ) 5,509 207 Acuity Brands, Inc. 13,016 3,416
Align Technology, Inc.(Æ) 29,954 2,670 Albemarle Corp. 5,575 469
Analogic Corp. 2,936 247 Armstrong Flooring, Inc.(Æ) 23,532 469
BioMarin Pharmaceutical, Inc.(Æ) 2,801 278 Ashland, Inc. 6,611 749
Bio-Rad Laboratories, Inc. Class A(Æ) 137 20 Balchem Corp. 25,631 1,637
Bio-Techne Corp. 21,772 2,448 Ball Corp.(Ñ) 13,125 928
Cantel Medical Corp. 8,728 584 Belden, Inc. 3,675 269
Carbylan Therapeutics, Inc.(Æ)(Ñ) 81,702 44 Bemis Co., Inc. 2,414 123
Celldex Therapeutics, Inc.(Æ)(Ñ) 53,909 249 Carpenter Technology Corp. 21,149 830
Charles River Laboratories International,       Century Aluminum Co.(Æ) 71,706 544
    Inc.(Æ) 14,706 1,293 Chemtura Corp.(Æ) 19,686 553
Chemed Corp. 2,336 344 Compass Minerals International, Inc.(Ñ) 11,120 774
Community Health Systems, Inc.(Æ)(Ñ) 56,223 718 Crown Holdings, Inc.(Æ) 5,723 303
CONMED Corp. 20,671 840 Domtar Corp. 1,938 76
Cooper Cos., Inc. (The) 2,058 375 Eagle Materials, Inc. 3,008 252
DexCom, Inc.(Æ) 7,077 653 Eastman Chemical Co. 2,170 142
DYAX Corp. 5,306 6 Ferro Corp.(Æ) 4,771 62
Five Prime Therapeutics, Inc.(Æ) 6,820 346 FMC Corp. 20,877 992
Haemonetics Corp.(Æ) 14,649 444 GCP Applied Technologies, Inc.(Æ) 39,690 1,093
Henry Schein, Inc.(Æ) 1,751 317 Global Brass & Copper Holdings, Inc. 16,735 474
Hologic, Inc.(Æ) 9,896 381 Headwaters, Inc.(Æ) 4,271 85
Icon PLC(Æ) 19,330 1,501 Hexcel Corp. 1,255 54
ICU Medical, Inc.(Æ) 264 31 Innophos Holdings, Inc. 13,657 588
Impax Laboratories, Inc.(Æ) 242 8 Innospec, Inc. 4,161 209
Integer Holdings Corp.(Æ) 13,350 296 ITT, Inc. 38,783 1,230
Integra LifeSciences Holdings Corp.(Æ) 23,556 1,985 LB Foster Co. Class A 29,660 311
Invacare Corp. 99,898 1,151 Lennox International, Inc. 3,222 505
Ionis Pharmaceuticals, Inc.(Æ)(Ñ) 7,245 211 LSB Industries, Inc.(Æ)(Ñ) 28,516 330
Kindred Healthcare, Inc. 117,767 1,444 Martin Marietta Materials, Inc. 6,606 1,339
Lannett Co., Inc.(Æ) 21,296 665 Minerals Technologies, Inc. 21,553 1,407
LifePoint Health, Inc.(Æ) 5,147 305 Mosaic Co. (The) 11,529 311
Ligand Pharmaceuticals, Inc. Class B(Æ)(Ñ) 15,029 2,027 NewMarket Corp. 1,978 846
MEDNAX, Inc.(Æ) 14,989 1,033 Owens Corning 3,111 165
MiMedx Group, Inc.(Æ)(Ñ) 89,998 674 Packaging Corp. of America 4,726 353
Neurocrine Biosciences, Inc.(Æ) 4,810 242 PGT, Inc.(Æ) 97,806 1,174
Omnicell, Inc.(Æ) 8,346 323 PolyOne Corp. 6,686 234
Orthofix International NV(Æ) 4,798 227 RBC Bearings, Inc.(Æ) 1,937 147
PDL BioPharma, Inc.(Æ) 68,868 242 RPM International, Inc. 14,379 780
PRA Health Sciences, Inc.(Æ) 16,172 750 Schweitzer-Mauduit International, Inc. 2,050 77

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed U.S. Mid & Small Cap Fund 103

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Sealed Air Corp. 3,044 144 Franklin Electric Co., Inc. 24,410 945
Sensient Technologies Corp. 14,121 1,043 Frontline, Ltd. 17,604 140
Sonoco Products Co. 3,919 200 FTI Consulting, Inc.(Æ) 23,529 1,008
Steel Dynamics, Inc. 7,194 193 G&K Services, Inc. Class A 5,726 459
Trex Co., Inc.(Æ) 925 45 GATX Corp.(Ñ) 17,179 768
Trinseo SA 12,619 628 Generac Holdings, Inc.(Æ)(Ñ) 18,554 701
Unifi, Inc.(Æ) 42,264 1,142 Genesee & Wyoming, Inc. Class A(Æ) 11,601 751
United States Steel Corp.(Ñ) 4,568 126 Genpact, Ltd.(Æ) 54,152 1,450
Universal Forest Products, Inc. 2,625 284 Graco, Inc. 1,457 108
US Silica Holdings, Inc.(Ñ) 4,390 151 Granite Construction, Inc. 4,810 239
USG Corp.(Æ) 2,345 66 Greenbrier Cos., Inc.(Ñ) 24,147 793
Valspar Corp. 4,411 470 Hawaiian Holdings, Inc.(Æ) 10,269 468
Vulcan Materials Co. 23,828 2,954 Healthcare Services Group, Inc. 75,255 2,921
Watsco, Inc. 7,077 1,019 HEICO Corp. 4,771 332
WR Grace & Co. 2,986 224 Herc Holdings, Inc.(Æ) 148 5
      33,286 Herman Miller, Inc. 35,304 1,157
        Hertz Global Holdings, Inc.(Æ) 444 22
Producer Durables - 15.0%       HNI Corp. 4,654 243
ACCO Brands Corp.(Æ) 42,144 474 Insperity, Inc. 588 46
Actuant Corp. Class A 3,639 86 Jacobs Engineering Group, Inc.(Æ) 4,079 218
Advisory Board Co. (The)(Æ) 17,311 723 Kansas City Southern 1,553 149
AGCO Corp. 664 32 Keysight Technologies, Inc.(Æ) 9,994 292
Air Transport Services Group, Inc.(Æ) 802 12 Kirby Corp.(Æ) 7,097 387
Aircastle, Ltd. 8,190 182 Knight Transportation, Inc. 9,433 281
Alaska Air Group, Inc. 633 43 Knoll, Inc. 59,276 1,497
Allegiant Travel Co. Class A 1,795 233 Lexmark International, Inc. Class A 4,190 154
Allison Transmission Holdings, Inc. Class A 36,880 1,063 Littelfuse, Inc. 2,549 319
Altra Industrial Motion Corp. 31,801 903 Manitowoc Co., Inc. (The) 7,453 41
Ametek, Inc. 2,397 113 Manitowoc Foodservice, Inc.(Æ) 37,581 689
AO Smith Corp. 11,268 1,047 ManpowerGroup, Inc. 3,614 251
Applied Industrial Technologies, Inc. 4,000 188 Matson, Inc. 1,614 60
Atlas Air Worldwide Holdings, Inc.(Æ) 13,925 602 MAXIMUS, Inc. 42,985 2,533
B/E Aerospace, Inc. 22,681 1,085 Mettler-Toledo International, Inc.(Æ) 678 279
Babcock & Wilcox Co. (The) 22,663 834 Middleby Corp.(Æ) 8,110 976
Barnes Group, Inc. 28,739 1,090 Monster Worldwide, Inc.(Æ) 124,377 315
Barrett Business Services, Inc. 919 39 Navigant Consulting, Inc.(Æ) 8,155 161
Booz Allen Hamilton Holding Corp. Class A 9,028 279 Navios Maritime Acquisition Corp.(Ñ) 31,400 48
Brady Corp. Class A 48,416 1,556 Nordson Corp. 2,847 251
Briggs & Stratton Corp. 60,238 1,369 NV5 Global, Inc.(Æ) 7,442 239
Brink's Co. (The) 1,241 41 Orbital ATK, Inc. 4,746 413
Bristow Group, Inc. 8,221 89 OSI Systems, Inc.(Æ) 7,705 458
Carlisle Cos., Inc. 3,258 336 Pentair PLC 2,864 183
CEB, Inc. 2,251 135 Pitney Bowes, Inc. 44,252 854
CIRCOR International, Inc. 19,937 1,135 Proto Labs, Inc.(Æ) 8,132 448
Clarcor, Inc. 15,000 934 Robert Half International, Inc. 4,436 162
Commercial Vehicle Group, Inc.(Æ) 83,993 348 Rollins, Inc. 817 23
Convergys Corp. 879 23 Rush Enterprises, Inc. Class A(Æ) 31,548 725
CoStar Group, Inc.(Æ) 10,684 2,221 Saia, Inc.(Æ) 19,894 575
Crane Co. 8,094 504 SkyWest, Inc. 8,678 250
Deluxe Corp. 3,172 214 Snap-on, Inc. 203 32
DXP Enterprises, Inc.(Æ)(Ñ) 4,804 80 Stericycle, Inc.(Æ) 9,068 819
Echo Global Logistics, Inc.(Æ) 68,211 1,689 Sykes Enterprises, Inc.(Æ) 804 25
Electronics For Imaging, Inc.(Æ) 4,867 216 Terex Corp. 4,352 105
EnPro Industries, Inc. 14,344 656 Tetra Tech, Inc. 4,369 144
ESCO Technologies, Inc. 40,946 1,734 Textron, Inc. 7,997 312
Essendant, Inc. 9,560 192 Thermon Group Holdings, Inc.(Æ) 34,103 688
ExlService Holdings, Inc.(Æ) 4,894 242 Tidewater, Inc.(Æ)(Ñ) 36,034 154
Exponent, Inc. 446 23 Titan Machinery, Inc.(Æ)(Ñ) 12,328 138
Flowserve Corp. 17,531 839 Toro Co. (The) 3,832 352
Forward Air Corp. 3,832 177 TriMas Corp.(Æ) 41,148 735

 

See accompanying notes which are an integral part of this quarterly report.

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

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)    
    Principal Fair     Principal   Fair
  Amount ($) or Value   Amount ($) or   Value
    Shares $     Shares   $
Trimble Navigation, Ltd.(Æ) 31,937 844 QLogic Corp.(Æ) 14,466   224
Triumph Group, Inc. 13,823 426 Qorvo, Inc.(Æ) 4,523   286
TrueBlue, Inc.(Æ) 62,613 1,398 Rambus, Inc.(Æ) 18,176   246
UniFirst Corp. 1,948 228 RetailMeNot, Inc.(Æ) 38,633   323
United Rentals, Inc.(Æ) 12,333 983 Rogers Corp.(Æ) 2,134   146
Vectrus, Inc.(Æ) 13,626 424 Sabre Corp. 22,137   645
Virgin America, Inc.(Æ)(Ñ) 5,821 325 Sanmina Corp.(Æ) 3,534   90
Wabtec Corp. 17,434 1,194 Silicon Graphics International Corp.(Æ) 46,832   253
WageWorks, Inc.(Æ) 34,187 2,113 Symantec Corp. 10,084   206
Wesco Aircraft Holdings, Inc.(Æ) 24,091 310 Synaptics, Inc.(Æ) 8,661   450
Zebra Technologies Corp. Class A(Æ) 1,561 83 Syntel, Inc.(Æ) 18,509   839
      61,400 Take-Two Interactive Software, Inc.(Æ) 28,421   1,142
        TrueCar, Inc.(Æ) 32,330   303
Technology - 11.6%       Tyler Technologies, Inc.(Æ) 7,708   1,257
Acacia Research Corp.(Æ) 62,849 340 Ultimate Software Group, Inc.(Æ) 5,671   1,186
ACI Worldwide, Inc.(Æ) 11,891 236 VeriFone Systems, Inc.(Æ) 66,576   1,276
Advanced Micro Devices, Inc.(Æ) 8,044 55 Virtusa Corp.(Æ) 32,352   880
Akamai Technologies, Inc.(Æ) 14,355 725         47,653
Ambarella, Inc.(Æ)(Ñ) 4,361 253          
Anixter International, Inc.(Æ) 5,435 333 Utilities - 3.4%        
ARC Document Solutions, Inc.(Æ) 9,434 37 8x8, Inc.(Æ) 79,177   1,089
Autobytel, Inc.(Æ) 21,998 327 ALLETE, Inc. 3,252   208
Avnet, Inc. 5,180 213 CMS Energy Corp. 63,410   2,865
Black Box Corp. 18,906 258 Connecticut Water Service, Inc. 4,800   245
Bottomline Technologies de, Inc.(Æ) 54,454 1,149 El Paso Electric Co. 25,056   1,195
CA, Inc. 70,112 2,429 Fairmount Santrol Holdings, Inc.(Æ)(Ñ) 42,623   292
CACI International, Inc. Class A(Æ) 14,676 1,399 FairPoint Communications, Inc.(Æ) 10,893   176
Callidus Software, Inc.(Æ) 47,977 985 Idacorp, Inc. 3,075   249
Cardtronics PLC Class A(Æ) 38,257 1,683 Level 3 Communications, Inc.(Æ) 5,357   271
Cavium, Inc.(Æ) 7,918 369 National Fuel Gas Co. 20,955   1,184
comScore, Inc.(Æ) 32,130 834 New Jersey Resources Corp. 6,600   246
Criteo SA - ADR(Æ) 17,912 791 Northwest Natural Gas Co. 2,731   177
Cypress Semiconductor Corp.(Ñ) 21,153 246 NorthWestern Corp. 25,538   1,551
Diodes, Inc.(Æ) 16,711 309 ONE Gas, Inc. 7,521   489
DST Systems, Inc. 1,227 151 Piedmont Natural Gas Co., Inc. 1,392   83
Ellie Mae, Inc.(Æ) 16,378 1,509 Pinnacle West Capital Corp. 1,957   154
Entegris, Inc.(Æ) 73,831 1,262 PNM Resources, Inc. 5,304   182
Envestnet, Inc.(Æ) 39,949 1,525 Southwest Gas Corp. 4,108   318
EPAM Systems, Inc.(Æ) 23,030 1,618 Spark Energy, Inc. Class A(Ñ) 14,344   356
FormFactor, Inc.(Æ) 114,373 1,069 Telephone & Data Systems, Inc. 21,663   682
Fortinet, Inc.(Æ) 31,599 1,096 US Cellular Corp.(Æ) 3,488   141
GigPeak, Inc.(Æ) 34,814 66 Vectren Corp. 29,091   1,505
Guidewire Software, Inc.(Æ) 11,466 705 Westar Energy, Inc. Class A 2,336   130
IPG Photonics Corp.(Æ) 1,991 168         13,788
Ixia(Æ) 4,079 47          
Jabil Circuit, Inc. 6,244 127 Total Common Stocks        
MACOM Technology Solutions Holdings,       (cost $284,054)       390,853
    Inc.(Æ) 43,471 1,717          
Manhattan Associates, Inc.(Æ) 12,589 731 Short-Term Investments - 4.2%        
ManTech International Corp. Class A 90,712 3,584 Russell U.S. Cash Management Fund 17,237,904 (8) 17,238
Match Group, Inc.(Æ)(Ñ) 24,145 380 Total Short-Term Investments        
MeetMe, Inc.(Æ) 60,159 387 (cost $17,238)       17,238
Monolithic Power Systems, Inc. 6,476 471          
Oclaro, Inc.(Æ)(Ñ) 7,551 43 Other Securities - 6.1%        
ON Semiconductor Corp.(Æ) 9,500 95 Russell U.S. Cash Collateral Fund(×) 24,991,456 (8) 24,991
Open Text Corp. 8,490 517 Total Other Securities        
Orbotech, Ltd.(Æ) 6,913 197 (cost $24,991)       24,991
Plexus Corp.(Æ) 57,466 2,640          
Progress Software Corp.(Æ) 76,243 2,216 Total Investments 105.7%        
PTC, Inc.(Æ) 65,657 2,609 (identified cost $326,283)       433,082

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed U.S. Mid & Small Cap Fund 105

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)    
Principal Fair  
Amount ($) or Value  
Shares $  
 
Other Assets and Liabilities, Net    
- (5.7%) (23,366 )
Net Assets - 100.0% 409,716  

 

See accompanying notes which are an integral part of this quarterly report.

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

 

Russell Investment Company
Russell Tax-Managed U.S. Mid & Small Cap Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                        
Amounts in thousands (except contract amounts)                    
                        Unrealized
                      Appreciation
          Number of   Notional   Expiration (Depreciation)
          Contracts   Amount   Date   $
Long Positions                        
S&P Mid 400 E-Mini Index Futures       114 USD 17,749 09/16   539
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)                   539
 
Presentation of Portfolio Holdings                      
 
Amounts in thousands                        
 
        Fair Value              
                Practical    
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                        
Consumer Discretionary $ 56,698 $ — $   — $   — $ 56,698
Consumer Staples   13,918   —     5     —   13,923
Energy   16,280   —     —     —   16,280
Financial Services   102,781   —     109     —   102,890
Health Care   44,929   —     6     —   44,935
Materials and Processing   33,286   —     —     —   33,286
Producer Durables   61,400   —     —     —   61,400
Technology   47,653   —     —     —   47,653
Utilities   13,788   —     —     —   13,788
Short-Term Investments — —   —   17,238 17,238
Other Securities — —   —   24,991 24,991
Total Investments 390,733 —   120   42,229 433,082
 
 
Other Financial Instruments                        
Assets                        
Futures Contracts 539 —   —   — 539
Total Other Financial Instruments* $ 539 $ — $   — $   — $ 539

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed U.S. Mid & Small Cap Fund 107

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Common Stocks - 92.3%           BRF SA - ADR 24,831   414
Argentina - 0.6%           CCR SA 166,353   961
Arcos Dorados Holdings, Inc. Class           Cia Brasileira de Distribuicao - ADR 23,638   356
A(Æ) 32,524   178 Cia de Saneamento Basico do Estado de        
Banco Macro SA - ADR 4,521   340 Sao Paulo - ADR(Æ) 234,530   2,215
Grupo Financiero Galicia SA - ADR 12,625   375 Cia de Saneamento de Minas        
IRSA Inversiones y Representaciones           Gerais-COPASA(Æ) 19,464   198
SA - ADR(Æ) 6,750   125 Cosan SA Industria e Comercio 88,699   931
MercadoLibre, Inc. 7,831   1,198 Even Construtora e Incorporadora SA 86,972   124
YPF SA - ADR 61,660   1,139 Hypermarcas SA 58,722   497
          3,355 Itau Unibanco Holding SA - ADR 93,695   979
            JBS SA 157,780   530
Australia - 1.7%           Petroleo Brasileiro SA - ADR(Æ) 312,776   2,716
AGL Energy, Ltd. 14,311   223 Rumo Logistica Operadora Multimodal        
ASX, Ltd. - ADR 4,813   181 SA(Æ) 458,657   866
Australia & New Zealand Banking           Telefonica Brasil SA - ADR 101,445   1,537
Group, Ltd. - ADR 84,013   1,644 TIM Participacoes SA - ADR 56,558   729
Bendigo & Adelaide Bank, Ltd. 30,927   239         16,927
BHP Billiton PLC 51,874   658          
BHP Billiton, Ltd. - ADR 12,620   188 Canada - 3.7%        
Commonwealth Bank of Australia - ADR 34,213   2,006 Alimentation Couche-Tard, Inc. Class B 5,061   229
CSL, Ltd. 805   72 Bank of Montreal 1,856   119
Fortescue Metals Group, Ltd. 42,690   144 Bank of Nova Scotia (The) 9,714   493
Goodman Group(ö) 71,710   411 Barrick Gold Corp. 16,388   358
GPT Group (The)(ö) 138,365   591 BCE, Inc. 6,228   298
Medibank Pvt, Ltd. 188,483   439 Brookfield Asset Management, Inc.        
Mirvac Group(ö) 103,514   173 Class A 12,316   425
National Australia Bank, Ltd. - ADR 9,123   185 Brookfield Real Estate Services, Inc. 32,533   379
QBE Insurance Group, Ltd. 21,631   181 Canadian Imperial Bank of Commerce 4,397   334
Rio Tinto, Ltd. - ADR 20,684   792 Canadian National Railway Co. 29,375   1,858
Scentre Group(ö) 225,998   911 Canadian Natural Resources, Ltd. 35,419   1,073
Stockland(ö) 29,894   115 Canadian Pacific Railway, Ltd. 8,545   1,280
Wesfarmers, Ltd. 12,552   410 CCL Industries, Inc. Class B 234   42
Westfield Corp.(ö) 28,689   233 Cenovus Energy, Inc. 40,360   578
Westpac Banking Corp. 19,284   457 CGI Group, Inc. Class A(Æ) 3,049   148
          10,253 Dollarama, Inc. 2,149   159
            Enbridge, Inc. 19,295   794
Austria - 0.1%           Fairfax Financial Holdings, Ltd. 416   223
Strabag SE 9,232   289 First Quantum Minerals, Ltd. 160,324   1,386
UNIQA Insurance Group AG 49,228   305 Goldcorp, Inc. 29,612   529
          594 Gran Tierra Energy, Inc.(Æ) 100,214   278
 
Belgium - 0.6%           Great-West Lifeco, Inc. 9,476   246
Anheuser-Busch InBev SA 14,987   1,931 Husky Energy, Inc.(Æ) 63,677   749
Colruyt SA 511   28 Industrial Alliance Insurance &        
Elia System Operator SA 5,531   295 Financial Services, Inc. 8,194   267
KBC Group NV 22,535   1,171 Intact Financial Corp. 1,675   120
Proximus 105   3 Loblaw Cos., Ltd. 2,231   124
          3,428 Magna International, Inc. Class A 35,732   1,377
            Metro, Inc. Class A 4,660   169
Bermuda - 0.1%           National Bank of Canada 10,700   366
Hiscox, Ltd. 24,694   346 Open Text Corp. 5,805   354
            Potash Corp. of Saskatchewan, Inc. 69,121   1,077
Brazil - 2.9%           Restaurant Brands International, Inc. 10,135   453
B2W Cia Digital(Æ) 178,690   716 Rogers Communications, Inc. Class B 56,879   2,513
Banco Bradesco SA - ADR(Æ) 66,258   576 Royal Bank of Canada - GDR 16,817   1,025
Banco Santander Brasil SA - ADR 30,194   189 SNC-Lavalin Group, Inc. 7,651   330
BB Seguridade Participacoes SA 119,131   1,107 Toronto Dominion Bank 14,319   624
BM&FBovespa SA - Bolsa de Valores           TransCanada Corp. 18,850   874
Mercadorias e Futuros(Æ) 183,322   1,079         21,651
Braskem SA - ADR 18,027   207          

 

See accompanying notes which are an integral part of this quarterly report.

108 Russell Tax-Managed International Equity Fund

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Chile - 0.5%           Sunac China Holdings, Ltd. 122,866   77
Antofagasta PLC 337,931   2,254 Tencent Holdings, Ltd. 135,965   3,268
Banco de Credito e Inversiones 1   — Tingyi Cayman Islands Holding Corp. 298,000   259
Cia Cervecerias Unidas SA - ADR 12,947   296 Tsingtao Brewery Co., Ltd. Class H 30,000   106
Sociedad Quimica y Minera de Chile           Uni-President China Holdings, Ltd. 447,715   344
SA - ADR 7,333   182 Vipshop Holdings, Ltd. - ADR(Æ) 6,559   93
          2,732 Weibo Corp. - ADR(Æ) 56,490   1,838
            Zhejiang Expressway Co., Ltd. Class H 781   1
China - 6.1%                   35,914
Alibaba Group Holding, Ltd. - ADR(Æ) 36,245   2,990          
Angang Steel Co., Ltd. Class H(Æ) 1,990,000   975 Curacao - 0.0%        
Baidu, Inc. - ADR(Æ) 8,579   1,369 HAL Trust 320   64
Bank of China, Ltd. Class H 1,086,437   448          
BYD Electronic International Co., Ltd.           Denmark - 1.2%        
(Æ) 830,500   633 Carlsberg A/S Class B 10,795   1,072
China CITIC Bank Corp., Ltd. Class H 1,157,000   733 Chr Hansen Holding A/S 1,138   72
China Communications Services Corp.,           Danske Bank A/S 57,362   1,556
Ltd. Class H 784,000   425 DSV A/S 5,558   247
China Construction Bank Corp. Class H 1,072,000   719 GN Store Nord A/S 6,464   122
China Mengniu Dairy Co., Ltd. 401,000   672 Jyske Bank A/S 8,525   354
China Minsheng Banking Corp., Ltd.           Matas A/S 30,494   538
Class H 345,500   361 Novo Nordisk A/S Class B 37,757   2,153
China Petroleum & Chemical Corp.           Scandinavian Tobacco Group A/S(Þ) 37,388   661
Class H 1,266,000   907 William Demant Holding A/S(Æ) 25,395   518
China Railway Group, Ltd. Class H 1,194,193   902         7,293
China Resources Land, Ltd. 208,968   521          
China Shenhua Energy Co., Ltd. Class H 414,000   795 Egypt - 0.0%        
China Telecom Corp., Ltd. Class H 311,654   154 Commercial International Bank Egypt        
Chongqing Changan Automobile Co.,                SAE - GDR 1   —
Ltd. Class B 300,629   498          
Chongqing Rural Commercial Bank Co.,           Finland - 0.3%        
Ltd. Class H 755,059   397 Cargotec OYJ Class B 5,952   267
CIFI Holdings Group Co., Ltd. 2,374,000   616 Elisa OYJ Class A 5,966   216
CITIC Securities Co., Ltd. Class H 577,000   1,228 Fortum OYJ 83   1
CNOOC, Ltd. 422,000   507 Kone OYJ Class B 2,181   110
Ctrip.com International, Ltd. - ADR(Æ) 27,324   1,193 Neste Oyj 1,217   46
Dongfeng Motor Group Co., Ltd. Class H 804,804   996 Orion Oyj Class B 786   32
Geely Automobile Holdings, Ltd. 2,440,000   1,609 Tikkurila OYJ 27,069   522
Hengan International Group Co., Ltd. 115,092   970 UPM-Kymmene OYJ 22,207   457
Hua Hong Semiconductor, Ltd.(Þ) 254,000   239         1,651
Huadian Power International Corp., Ltd.         France - 6.4%        
Class H 664,251   315 Air Liquide SA Class A 11,063   1,180
Industrial & Commercial Bank of China,         AXA SA 5,423   110
Ltd. Class H 368,000   208 BioMerieux 2,113   292
Inner Mongolia Yili Industrial Group           Bollore SA 104,351   377
Co., Ltd. Class A 249,564   696 Bouygues SA - ADR 46,477   1,373
Lenovo Group, Ltd. 838,000   539 Carrefour SA 17,753   444
New Oriental Education & Technology           Christian Dior SE 2,234   404
Group - ADR(Æ) 29,983   1,321 Credit Agricole SA 113,258   1,003
PetroChina Co., Ltd. - ADR 2,063   141 Danone SA 43,521   3,348
PICC Property & Casualty Co., Ltd.           Dassault Systemes SA 348   29
Class H 516,000   802 Engie SA 128,915   2,119
Poly Real Estate Group Co., Ltd. Class A 611,669   827 Essilor International SA 15,501   1,983
Qinqin Foodstuffs Group Cayman Co.,                    
Ltd.(Æ) 25,318   9 Euler Hermes Group 3,989   330
Shanghai Pharmaceuticals Holding Co.,           Faurecia 47,489   1,870
Ltd. Class H 322,400   767 Lectra 50,301   833
SINA Corp.(Æ) 21,907   1,180 L'Oreal SA 13,945   2,652
Sinopec Shanghai Petrochemical Co.,           Mercialys SA(ö) 7,185   168
Ltd. Class H 2,761,136   1,340 Natixis SA 64,931   267
Sohu.com, Inc.(Æ) 23,928   926 Orange SA - ADR 12,888   198

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 109

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
Pernod Ricard SA 3,723   425 Hong Kong - 3.0%          
Publicis Groupe SA - ADR 23,347   1,737 AIA Group, Ltd. 26,200   163
Renault SA 7,382   644 Brilliance China Automotive Holdings,          
Safran SA 15,822   1,074 Ltd. 960,000   1,068
Sanofi - ADR 58,509   4,974 Champion REIT(ö) 194,000   112
Schneider Electric SE 48,607   3,175 Cheung Kong Infrastructure Holdings,          
Societe Generale SA 3,244   111 Ltd. 41,000   363
Technip SA 5,102   284 Cheung Kong Property Holdings, Ltd. 167,323   1,200
Teleperformance - GDR 2,067   192 China Mobile, Ltd. - ADR 60,664   3,766
Total SA 58,591   2,816 China Overseas Land & Investment, Ltd. 474,000   1,563
Unibail-Rodamco SE(Æ)(ö) 729   201 China Unicom Hong Kong, Ltd. - ADR 55,467   586
Vallourec SA(Æ) 227,413   826 CK Hutchison Holdings, Ltd. 111,529   1,305
Vicat SA 17,853   1,066 CLP Holdings, Ltd. 35,000   365
Vinci SA 8,654   656 Goldin Financial Holdings, Ltd.(Æ) 453   —
Worldline SA(Æ)(Þ) 17,726   530 Hang Lung Properties, Ltd. - ADR 229,000   496
        37,691 Hong Kong Exchanges and Clearing,          
          Ltd. 12,300   304
Germany - 3.9%         Jardine Matheson Holdings, Ltd. 4,000   237
adidas AG 2,086   342 Jardine Strategic Holdings, Ltd. 17,700   542
Allianz SE 6,673   956 Link REIT(ö) 68,000   508
BASF SE 10,520   826 Luk Fook Holdings International, Ltd. 226   1
Bayer AG 5,182   558 MTR Corp., Ltd. 24,500   139
Beiersdorf AG 1,001   94 Nine Dragons Paper Holdings, Ltd. 1,507,000   1,198
Continental AG 3,994   837 Power Assets Holdings, Ltd. 53,500   525
Daimler AG 5,589   380 Shenzhen International Holdings, Ltd. 57,518   84
Deutsche Bank AG(Æ) 32,233   432 Skyworth Digital Holdings, Ltd. 1,184,000   887
Deutsche Boerse AG 29,173   2,447 Swire Pacific, Ltd. Class A 16,000   192
Deutsche Post AG 17,994   537 Swire Properties, Ltd. 146,800   409
Deutsche Telekom AG 14,611   248 WH Group, Ltd.(Þ) 1,648,782   1,302
Deutsche Wohnen AG 4,110   154 Yue Yuen Industrial Holdings, Ltd. 113,395   460
E.ON SE 13,613   146           17,775
Fresenius Medical Care AG & Co. 3,064   280            
Fresenius SE & Co. KGaA 12,064   901 Hungary - 0.3%          
GEA Group AG 5,267   281 OTP Bank PLC 77,163   1,878
Hamburger Hafen und Logistik AG 40,407   646            
Hannover Rueck SE 1,235   126 India - 2.8%          
HeidelbergCement AG 12,972   1,099 Axis Bank, Ltd. - GDR 37,276   1,521
Henkel AG & Co. KGaA 560   61 Britannia Industries, Ltd. 24,768   1,086
Infineon Technologies AG - ADR 2,021   33 Dr Reddy's Laboratories, Ltd. - ADR 9,942   434
K&S AG 8,837   184 GAIL India, Ltd. - GDR 7,528   257
LEG Immobilien AG 389   39 HDFC Bank, Ltd. - ADR 34,599   2,397
Linde AG 2,213   318 ICICI Bank, Ltd. - ADR 156,596   1,187
Merck KGaA 10,806   1,192 Infosys, Ltd. - ADR 15,790   259
OSRAM Licht AG 3,175   165 IRB Infrastructure Developers, Ltd. 267,043   863
Rational AG 2,233   1,080 Mahindra & Mahindra, Ltd. - GDR 10,041   222
SAP SE - ADR 33,520   2,935 Power Finance Corp., Ltd. 97,012   316
Siemens AG 29,850   3,242 Punjab National Bank(Æ) 248,396   458
Software AG 9,114   367 Reliance Capital, Ltd. 28,359   190
Talanx AG 9,909   298 Reliance Industries, Ltd. - GDR(Æ)(Þ) 70,642   2,130
ThyssenKrupp AG - ADR 31,840   730 Tata Chemicals, Ltd. 42,685   303
Volkswagen AG 3,624   537 Tata Motors, Ltd. Class A 100,256   484
Vonovia SE 5,828   231 Tata Motors, Ltd. - ADR 88,203   3,337
        22,702 Zee Entertainment Enterprises, Ltd. 137,835   1,022
                    16,466
Greece - 0.1%                    
Alpha Bank AE(Æ) 87,708   173 Indonesia - 0.4%          
Eurobank Ergasias SA(Æ) 544,607   310 Astra International Tbk PT 498,100   294
National Bank of Greece SA(Æ) 1,559,354   351 Bank Central Asia Tbk PT 574,000   634
        834 Gudang Garam Tbk PT 146,800   758
          Media Nusantara Citra Tbk PT 1,556,300   256
          Pakuwon Jati Tbk PT 5,762,100   287

 

See accompanying notes which are an integral part of this quarterly report.

110 Russell Tax-Managed International Equity Fund

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
      Amount ($)   Value       Amount ($)   Value
      or Shares   $       or Shares   $
Tambang Batubara Bukit Asam Persero           FamilyMart Co., Ltd. 800   47
Tbk PT 128,100   97 FANUC Corp.(Æ) 8,323   1,391
United Tractors Tbk PT 232,000   279 FUJIFILM Holdings Corp. 8,521   306
          2,605 Fujitsu, Ltd. 735,146   3,049
            Honda Motor Co., Ltd. 179,365   4,898
Ireland - 0.7%           Hoshizaki Corp. 1,400   127
AerCap Holdings NV(Æ) 10,756   393 Icom, Inc. 10,400   215
CRH PLC 2,539   78 Iida Group Holdings Co., Ltd. 67,300   1,337
Icon PLC(Æ) 3,032   235 Isuzu Motors, Ltd. 193,800   2,518
Willis Towers Watson PLC 18,246   2,256 ITOCHU Corp. 128,018   1,448
XL Group, Ltd. 32,288   1,117 Iyo Bank, Ltd. (The) 46,700   301
          4,079 Japan Post Bank Co., Ltd. 68,488   836
            Japan Tobacco, Inc. 6,000   234
Israel - 0.2%           Kajima Corp. 25,000   185
Bank Hapoalim BM 47,764   244 Kamigumi Co., Ltd. 32,000   288
Bank Leumi Le-Israel BM(Æ) 66,942   241 Kao Corp. 3,700   199
Check Point Software Technologies, Ltd.         KDDI Corp. 30,700   935
(Æ) 1,942   149 Keyence Corp. 7,022   4,954
Nice, Ltd. 600   41 Kikkoman Corp. 2,000   72
Taro Pharmaceutical Industries, Ltd.(Æ) 738   103 Kitagawa Industries Co., Ltd.(Æ) 14,200   163
Teva Pharmaceutical Industries, Ltd. 1,967   106 Komatsu, Ltd. 17,300   336
          884 Kubota Corp. 14,600   213
 
Italy - 1.4%           Kuroda Electric Co., Ltd. 18,051   331
Atlantia SpA 4,807   120 Kyushu Electric Power Co., Inc.(Æ) 37,000   351
Banca Monte dei Paschi di Siena           M3, Inc.(Æ) 1,100   35
SpA(Æ) 597,214   206 Marubeni Corp. 66,000   307
Banca Popolare dell'Emilia Romagna SC 65,226   267 Medipal Holdings Corp. 2,600   43
Banca Popolare di Milano Scarl 499,836   242 MEIJI Holdings Co., Ltd. 400   42
Davide Campari-Milano SpA 11,235   116 Mitsubishi Chemical Holdings Corp. 43,600   236
Enel SpA 493,521   2,271 Mitsubishi Corp. 18,400   315
ENI SpA - ADR 124,471   1,901 Mitsubishi Electric Corp.(Æ) 13,000   152
Intesa Sanpaolo SpA 173,827   383 Mitsubishi UFJ Financial Group, Inc. 300,116   1,527
Poste Italiane SpA(Þ) 52,075   362 Mitsui & Co., Ltd. 9,100   106
Rizzoli Corriere Della Sera Mediagroup           Mizuho Financial Group, Inc. 173,500   279
SpA(Æ) 6,627   6 MS&AD Insurance Group Holdings, Inc. 16,000   461
Snam Rete Gas SpA 61,480   356 Murata Manufacturing Co., Ltd. 5   1
Telecom Italia SpA(Æ) 1,088,532   927 Nakanishi, Inc. 7,859   271
UniCredit SpA 169,508   415 NH Foods, Ltd. 2,000   49
Unione di Banche Italiane SpA 95,869   294 NHK Spring Co., Ltd. 38,600   338
Unipol Gruppo Finanziario SpA 111,971   310 Nidec Corp. 2,800   254
          8,176 Nikon Corp. 8,800   125
            Nintendo Co., Ltd.(Æ) 10,775   2,225
Japan - 10.6%           Nippon Fine Chemical Co., Ltd. 45,900   350
Aisin Seiki Co., Ltd. 4,100   187 Nippon Telegraph & Telephone Corp. 15,400   737
Ajinomoto Co., Inc. 3,000   77 Nissan Motor Co., Ltd.(Æ) 34,300   334
Alfresa Holdings Corp. 2,400   53 Nitori Holdings Co., Ltd. 11,900   1,489
Aozora Bank, Ltd. 33,000   121 Nitto FC Co., Ltd. 33,852   274
As One Corp. 21,074   868 NTT DOCOMO, Inc. 47,399   1,286
Asahi Group Holdings, Ltd. 700   24 Obayashi Corp. 14,000   153
Asics Corp. 17   — Obic Co., Ltd. 300   18
Canon, Inc. 20,806   590 Ono Pharmaceutical Co., Ltd. 7,000   251
Central Japan Railway Co. 500   93 Oriental Land Co., Ltd. 3,178   201
Chubu Electric Power Co., Inc. 27,200   397 ORIX Corp. 6,735   94
Cosel Co., Ltd. 48,777   549 Osaka Gas Co., Ltd. 37,000   149
Daihatsu Motor Co., Ltd.(Æ) 25,335   381 Otsuka Holdings Co., Ltd. 7,400   351
Dai-ichi Life Insurance Co., Ltd. (The) 124,785   1,620 Pola Orbis Holdings, Inc. 9,570   942
Daiichi Sankyo Co., Ltd. 7,300   174 Resona Holdings, Inc. 98,500   394
Daikin Industries, Ltd. 200   17 Ricoh Co., Ltd. 31,700   279
Daiwa House Industry Co., Ltd. 7,900   222 Ryohin Keikaku Co., Ltd. 500   111
Denso Corp. 42   2 Secom Co., Ltd. 17,563   1,319

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 111

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Secom Joshinetsu Co., Ltd. 8,700   291 Wal-Mart de Mexico SAB de CV 45,596   104
Sekisui Chemical Co., Ltd. 28,000   409         9,776
Sekisui House, Ltd. 19,500   326          
Seven & i Holdings Co., Ltd. 35   1 Netherlands - 2.1%        
Shimadzu Corp. 3,000   44 Aalberts Industries NV 2,677   89
Shimano, Inc. 10,487   1,644 ABN AMRO Group NV(Þ) 20,333   377
Shinsei Bank, Ltd. 220,000   332 Aegon NV 107,447   437
Shionogi & Co., Ltd. 4,500   233 ASM International NV 5,539   216
SoftBank Group Corp. 28,492   1,573 Delta Lloyd NV 81,643   291
Sojitz Corp. 110,200   265 GrandVision NV(Þ) 16,079   438
Sompo Japan Nipponkoa Holdings, Inc. 68,301   2,206 Heineken Holding NV 264   22
Sony Corp. 62,800   2,082 Heineken NV 5,745   542
Sumitomo Corp. 17,400   182 ING Groep NV 188,537   2,103
Sumitomo Electric Industries, Ltd. 31,000   427 Koninklijke Ahold Delhaize NV 7,277   174
Sumitomo Mitsui Financial Group, Inc. 48,002   1,531 Koninklijke KPN NV 453,013   1,489
Sumitomo Mitsui Trust Holdings, Inc. 123,000   410 Koninklijke Philips NV 5,156   137
Sumitomo Realty & Development Co.,         Royal Dutch Shell PLC Class A 152,292   3,962
Ltd. 14,000   362 Royal Dutch Shell PLC Class B 13,745   366
Terumo Corp. 1,300   56 X5 Retail Group NV - GDR(Æ) 70,733   1,542
Tokyo Electric Power Co. Holdings, Inc.                 12,185
(Æ) 88,900   348          
Toshiba Corp.(Æ) 220,000   571 New Zealand - 0.0%        
Toyota Motor Corp.(Æ) 36,100   2,009 Fonterra Co.-operative Group, Ltd. 35,614   146
 
Toyota Tsusho Corp. 5,300   117 Norway - 0.4%        
Unicharm Corp. 43,688   898 Orkla ASA 126,628   1,178
West Japan Railway Co. 1,400   87 Telenor ASA 42,188   704
Yamada Denki Co., Ltd. 25,400   134 Yara International ASA 12,028   392
        62,145         2,274
 
Kazakhstan - 0.0%         Peru - 0.2%        
KazMunaiGas Exploration Production         Cia de Minas Buenaventura SAA        
JSC - GDR(Æ) 24,480   189      - ADR(Æ) 51,029   747
Luxembourg - 0.4%         Credicorp, Ltd. 1,864   299
ArcelorMittal(Æ) 262,921   1,690         1,046
 
Tenaris SA 45,498   609 Philippines - 0.4%        
Ternium SA - ADR 9,542   207 BDO Unibank, Inc. 391,390   941
        2,506 Jollibee Foods Corp. 47,090   255
Malaysia - 0.0%         Puregold Price Club, Inc. 282,300   288
SapuraKencana Petroleum BHD(Æ) 828,200   290 Universal Robina Corp. 190,090   807
                  2,291
Mexico - 1.7%                  
America Movil SAB de CV 3,063,358   1,761 Portugal - 0.1%        
America Movil SAB de CV Class L         Banco Comercial Portugues SA Class        
- ADR 29,239   337      R(Æ) 9,957,211   225
Cemex SAB de CV - ADR(Æ) 184,048   1,408 Energias de Portugal SA 55,699   191
Coca-Cola Femsa SAB de CV 42,352   333 Sonae SGPS SA 419,494   325
Fomento Economico Mexicano SAB de                 741
 
CV - ADR 5,786   518 Russia - 1.8%        
Gentera SAB de CV 84,244   157 Gazprom PJSC - ADR 450,508   1,852
Gruma SAB de CV Class B 42,706   614 Lukoil PJSC - ADR 41,126   1,787
Grupo Bimbo SAB de CV 126,173   376 Mobile TeleSystems PJSC - ADR 12,327   110
Grupo Fin Santander ADR B - ADR 44,714   408 Novolipetsk Steel OJSC - GDR 104,672   1,513
Grupo Financiero Banorte SAB de CV         Rosneft PJSC - GDR(Æ) 74,152   358
Class O 206,950   1,133 Sberbank of Russia PJSC - ADR 224,631   1,988
Grupo Lala SAB de CV Class B 240,550   523 Severstal PJSC - GDR 23,766   281
Grupo Televisa SAB - ADR 76,643   2,037 Tatneft PJSC - ADR 19,614   554
Promotora y Operadora de         Yandex NV Class A(Æ) 86,701   1,877
Infraestructura SAB de CV 5,741   67         10,320

 

See accompanying notes which are an integral part of this quarterly report.

112 Russell Tax-Managed International Equity Fund

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
Singapore - 0.9%         Samsung Life Insurance Co., Ltd. 8,594   747
CapitaLand Commercial Trust, Ltd.(ö) 351,300   395 Shinhan Financial Group Co., Ltd. 36,649   1,313
CapitaLand, Ltd. 68,100   162 Shinsegae Co., Ltd. 1,157   188
DBS Group Holdings, Ltd. 9,000   104 SK Telecom Co., Ltd. - ADR 52,360   1,200
Oversea-Chinese Banking Corp., Ltd. 201,500   1,301 Woori Bank(Æ) 23,620   213
Singapore Telecommunications, Ltd. 578,678   1,795           37,970
United Overseas Bank, Ltd. 15,200   208            
Wilmar International, Ltd. 578,700   1,339 Spain - 0.6%          
        5,304 Amadeus IT Holding SA Class A 26,235   1,230
          Banco Bilbao Vizcaya Argentaria SA          
South Africa - 0.7%             - ADR 72,351   422
AngloGold Ashanti, Ltd. - ADR(Æ) 5,560   122 Banco de Sabadell SA - ADR 296,776   405
Aspen Pharmacare Holdings, Ltd. 37,522   1,013 Banco Santander SA - ADR 98,750   417
Bid Corp., Ltd. 15,518   290 Ebro Foods SA 1,531   35
Bidvest Group, Ltd. (The) 54,688   629 Endesa SA - ADR 8,418   177
Investec PLC 60,762   361 Iberdrola SA 20,635   141
Naspers, Ltd. Class N 4,347   683 Industria de Diseno Textil SA 2,080   72
Resilient Property Income 37,971   369 Obrascon Huarte Lain SA 81,952   305
Vodacom Group, Ltd. - ADR 27,565   321 Red Electrica Corp. SA 11,240   257
Woolworths Holdings, Ltd. 87,888   567 Repsol SA - ADR 26,485   336
        4,355           3,797
 
South Korea - 6.5%         Sweden - 1.4%          
BGF retail Co., Ltd. 6,159   1,098 Assa Abloy AB Class B 4,860   107
Daelim Industrial Co., Ltd. 10,146   759 Autoliv, Inc. 1,882   199
Dongbu Insurance Co., Ltd. 19,635   1,114 Fastighets AB Balder Class B(Æ) 23,179   633
GS Engineering & Construction Corp.         Hufvudstaden AB Class A 3,405   57
(Æ) 4,662   120 L E Lundbergforetagen AB Class B 8,737   526
Hana Financial Group, Inc. 40,746   995 Svenska Cellulosa AB SCA Class B 5,320   158
Hankook Tire Co., Ltd. 34,266   1,660 Svenska Handelsbanken AB Class A 152,741   1,837
Hanssem Co., Ltd. 1,866   287 Svenska Handelsbanken AB Class B 7,972   99
Hyosung Corp. 144   18 Swedbank AB Class A 11,613   244
Hyundai Development Co.-Engineering         Swedish Match AB 82,845   3,021
& Construction 32,738   1,296 Telefonaktiebolaget LM Ericsson Class B 56,512   421
Hyundai Engineering & Construction         Trelleborg AB Class B 17,236   314
Co., Ltd. 23,725   777 Volvo AB Class A - GDR 41,249   438
Hyundai Marine & Fire Insurance Co.,                   8,054
Ltd. 9,766   264            
Hyundai Mobis Co., Ltd. 1,302   297 Switzerland - 8.6%          
Hyundai Motor Co. 13,314   1,563 ABB, Ltd. 129,773   2,757
Hyundai Wia Corp. 32   2 Actelion, Ltd. 1,338   237
KB Financial Group, Inc. 70,608   2,237 Allreal Holding AG 1,934   286
KB Financial Group, Inc. - ADR 5,535   176 Basellandschaftliche Kantonalbank 221   209
KCC Corp. 1,040   367 Chocoladefabriken Lindt & Spruengli          
Kia Motors Corp. 6,641   250     AG 15   88
Korea Electric Power Corp. 32,939   1,800 Chubb, Ltd. 9,044   1,133
KT Corp. - ADR 22,709   347 Cie Financiere Richemont SA 50,117   3,045
KT&G Corp. 12,745   1,377 Credit Suisse Group AG 109,227   1,259
LG Chem, Ltd. 5,065   1,099 Flughafen Zuerich AG 5,585   1,047
LG Display Co., Ltd. 5,979   166 GAM Holding AG 15,611   171
LG Uplus Corp. 31,373   307 Geberit AG 4,864   1,876
Lotte Chemical Corp. 2,600   706 Georg Fischer AG 393   320
Lotte Chilsung Beverage Co., Ltd. 187   276 Givaudan SA 184   378
Lotte Confectionery Co., Ltd. 1,660   281 Glencore PLC(Æ) 336,163   839
Lotte Shopping Co., Ltd. 4,483   773 Kuehne & Nagel International AG 897   126
NAVER Corp. 2,131   1,351 LafargeHolcim, Ltd. 32,281   1,536
POSCO 12,200   2,473 Lonza Group AG 163   31
Samsung Card Co., Ltd. 10,899   420 Nestle SA 114,737   9,198
Samsung Electronics Co., Ltd. 6,886   9,468 Novartis AG 95,546   7,909
Samsung Fire & Marine Insurance Co.,         Panalpina Welttransport Holding AG 6,282   850
Ltd. 776   185 Partners Group Holding AG 81   37

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 113

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Roche Holding AG 26,724   6,823 Turkiye Is Bankasi Class C 22,241   34
Schindler Holding AG 19,658   3,777         3,881
St. Galler Kantonalbank AG 637   262          
STMicroelectronics NV 232,508   1,694 Ukraine - 0.0%        
Straumann Holding AG 153   58 MHP SA - GDR 1,431   13
Swiss Life Holding AG 413   94          
Syngenta AG 481   189 United Arab Emirates - 0.4%        
TE Connectivity, Ltd. 5,789   349 Air Arabia PJSC 739,974   292
UBS Group AG(Æ) 150,755   2,076 Aldar Properties PJSC 760,139   597
Wolseley PLC - ADR 25,214   1,404 Emaar Properties PJSC 742,295   1,386
Zurich Insurance Group AG 2,176   523         2,275
 
        50,581 United Kingdom - 13.6%        
Taiwan - 3.2%         Aggreko PLC 12,090   206
Advanced Semiconductor Engineering,         Amec Foster Wheeler PLC - GDR 96,784   576
Inc. - ADR 163,428   940 Anglo American PLC(Æ) 109,919   1,221
Chang Hwa Commercial Bank, Ltd. 344,000   185 Ashmore Group PLC 31,850   140
China Development Financial Holding         Aviva PLC 362,616   1,874
Corp. 525,000   128 Babcock International Group PLC 32,497   417
China Life Insurance Co., Ltd. 270,400   223 BAE Systems PLC 345,324   2,439
Chipbond Technology Corp. 445,000   608 Barclays PLC 941,987   1,924
Chunghwa Telecom Co., Ltd. - ADR 39,371   1,422 BBA Aviation PLC 259,450   817
Chunghwa Telecom Co., Ltd. 33,000   118 BGEO Group PLC 9,468   342
Compal Electronics, Inc. 1,196,178   750 BP PLC 418,937   2,376
E.Sun Financial Holding Co., Ltd. 18,073   10 BP PLC - ADR 46,583   1,602
Eclat Textile Co., Ltd. 103,000   1,149 British American Tobacco PLC 18,886   1,205
Hon Hai Precision Industry Co., Ltd.         Bunzl PLC 41,423   1,296
- GDR 138,527   773 CNH Industrial NV 52,106   371
Hota Industrial Manufacturing Co., Ltd. 195,934   891 Cobham PLC 632,239   1,431
Inotera Memories, Inc.(Æ) 593,000   484 Compass Group PLC 9,655   183
King Yuan Electronics Co., Ltd. 115,000   110 CYBG PLC(Æ) 106,273   366
Kinsus Interconnect Technology Corp. 71,000   153 Diageo PLC 196,142   5,607
Largan Precision Co., Ltd. 12,421   1,334 Fiat Chrysler Automobiles NV(Æ) 16,260   105
MediaTek, Inc. 70,000   533 G4S PLC 369,830   910
Novatek Microelectronics Corp. 147,000   515 Galiform PLC 256,328   1,465
Taiwan Semiconductor Manufacturing         GlaxoSmithKline PLC - ADR 209,494   4,678
Co., Ltd. - ADR 273,188   7,589 Halma PLC 7,340   102
United Microelectronics Corp. - ADR 206,680   391 HSBC Holdings PLC 343,880   2,248
Wistron Corp. 258,000   205 Imperial Tobacco Group PLC 78,715   4,148
        18,511 Inchcape PLC 43,979   392
          InterContinental Hotels Group PLC 55,551   2,220
Thailand - 0.4%         Intertek Group PLC 55,821   2,677
Bangkok Bank PCL 66,900   327 J Sainsbury PLC 146,103   433
Minor International PCL 551,200   643 Johnson Matthey PLC 10,765   466
PTT PCL 77,200   737 Lloyds Banking Group PLC 2,441,342   1,715
Siam Cement PCL (The) 3,800   56 Meggitt PLC 182,233   1,056
Sino-Thai Engineering & Construction         Michael Page International PLC 314,206   1,405
PCL 933,978   696 National Grid PLC 28,033   402
        2,459 Old Mutual PLC 189,470   528
          Pearson PLC 30,077   351
Turkey - 0.7%         Persimmon PLC Class A 10,217   228
Akbank TAS 292,713   754 Petrofac, Ltd. 33,064   326
Anadolu Efes Biracilik Ve Malt Sanayii         Prudential PLC 43,300   762
AS 40,066   271 Reckitt Benckiser Group PLC 2,503   242
Coca-Cola Icecek AS 49,629   615 RELX NV 17,024   308
Haci Omer Sabanci Holding AS 425,498   1,268 RELX PLC 46,466   882
Tupras Turkiye Petrol Rafinerileri AS 27,675   594 Rio Tinto PLC 4,260   139
Turkcell Iletisim Hizmetleri AS         Rolls-Royce Holdings PLC 105,723   1,106
- ADR(Æ) 11,458   99 Rotork PLC 472,759   1,361
Turkiye Garanti Bankasi AS 100,164   246 Royal Bank of Scotland Group PLC(Æ) 995,670   2,532
          RSA Insurance Group PLC 253,720   1,669

 

See accompanying notes which are an integral part of this quarterly report.

114 Russell Tax-Managed International Equity Fund

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)    
      Principal   Fair
      Amount ($)   Value
      or Shares   $
SABMiller PLC - ADR   4,478   262
Saga PLC   145,828   392
Smiths Group PLC   40,696   680
Spirax-Sarco Engineering PLC   32,726   1,724
Standard Chartered PLC(Æ)   232,045   1,856
Standard Life PLC   57,936   232
Stock Spirits Group PLC   320,533   658
Tate & Lyle PLC   34,713   332
Travis Perkins PLC   120,169   2,481
Tullow Oil PLC(Æ)   128,737   336
Unilever NV   134,943   6,245
Unilever PLC   15,388   719
Vodafone Group PLC   1,317,644   4,008
WPP PLC   39,209   881
          80,055
 
United States - 0.6%          
Ball Corp.   707   50
IHS Markit, Ltd.(Æ)   14,866   516
Maginet Corp.   13,680   525
News Corp. Class A   153,453   1,990
PriceSmart, Inc.   5,057   394
          3,475
 
Total Common Stocks          
(cost $502,321)         541,937
 
Preferred Stocks - 0.6%          
Germany - 0.6%          
Funchs Petrolub SE   28,173   1,189
Volkswagen AG   14,675   2,064
          3,253
 
Japan - 0.0%          
Shinkin Central Bank Class A   123   273
 
Spain - 0.0%          
Grifols SA   18,243   306
 
Total Preferred Stocks          
(cost $3,782)         3,832
 
Short-Term Investments - 4.1%          
United States - 4.1%          
Russell U.S. Cash Management Fund   23,977,626 (8) 23,978
Total Short-Term Investments          
(cost $23,978)         23,978
 
Total Investments 97.0%          
(identified cost $530,081)         569,747
 
Other Assets and Liabilities, Net          
- 3.0%       17,608
Net Assets - 100.0%         587,355

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 115

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                      
 
Amounts in thousands (except contract amounts)                      
                    Unrealized  
                    Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                      
Euro STOXX 50 Index Futures     660 EUR 19,688 09/16 711  
MSCI EAFE Mini Index Futures     249 USD 20,918 09/16 738  
MSCI Emerging Markets Mini Index Futures     130 USD 5,730 09/16 431  
S&P/TSX 60 Index Futures     34 CAD 5,750 09/16 183  
SPI 200 Index Futures     42 AUD 5,795 09/16 291  
TOPIX Index Futures     217 JPY 2,882,845 09/16 55  
Short Positions                      
FTSE 100 Index Futures     148 GBP 9,881 09/16 (1,346 )
MSCI Emerging Markets Mini Index Futures     628 USD 27,679 09/16 (1,611 )
S&P 500 E-Mini Index Futures     161 USD 17,454 09/16 (407 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)                 (955 )
 
Foreign Currency Exchange Contracts                      
Amounts in  thousands                      
                    Unrealized  
                    Appreciation  
    Amount       Amount     (Depreciation)  
Counterparty   Sold       Bought   Settlement Date $  
Bank of America USD 648   AUD 873 09/21/16 14  
Bank of America USD 76   CAD 100 09/21/16 2  
Bank of America USD 323   CAD 413 09/21/16 (7 )
Bank of America USD 133   EUR 120 09/21/16 1  
Bank of America USD 170   EUR 150 09/21/16 (2 )
Bank of America USD 227   EUR 200 09/21/16 (3 )
Bank of America USD 669   EUR 600 09/21/16 3  
Bank of America USD 1,012   GBP 694 09/21/16 (93 )
Bank of America USD 2,791   GBP 1,900 09/21/16 (274 )
Bank of America USD 667   HKD 5,175 09/21/16 —  
Bank of America USD 10   JPY 1,023 08/02/16 —  
Bank of America USD 191   JPY 20,000 09/21/16 5  
Bank of America USD 283   JPY 30,000 09/21/16 12  
Bank of America USD 488   JPY 50,000 09/21/16 6  
Bank of America USD 4,032   JPY 431,200 09/21/16 202  
Bank of America CHF 3,448   USD 3,585 09/21/16 18  
Bank of America GBP 120   USD 158 09/21/16 (1 )
Bank of America GBP 200   USD 285 09/21/16 20  
Bank of America GBP 1,700   USD 2,497 09/21/16 245  
Bank of America GBP 2,122   USD 3,096 09/21/16 287  
Bank of America JPY 40,000   USD 378 09/21/16 (15 )
Bank of America JPY 177,125   USD 1,656 09/21/16 (83 )
Bank of America NOK 5,288   USD 651 09/21/16 24  
Bank of New York USD 16   JPY 1,680 08/01/16 —  
BNP Paribas USD 299   AUD 400 09/21/16 4  
BNP Paribas USD 648   AUD 873 09/21/16 14  
BNP Paribas USD 156   CAD 200 09/21/16 (3 )
BNP Paribas USD 323   CAD 413 09/21/16 (7 )
BNP Paribas USD 1,013   GBP 694 09/21/16 (94 )
BNP Paribas USD 667   HKD 5,175 09/21/16 —  
BNP Paribas USD 4,029   JPY 431,200 09/21/16 205  
BNP Paribas CHF 600   USD 629 09/21/16 8  
BNP Paribas CHF 3,448   USD 3,584 09/21/16 18  
BNP Paribas GBP 2,122   USD 3,098 09/21/16 288  
BNP Paribas JPY 10,000   USD 96 09/21/16 (2 )
BNP Paribas JPY 177,125   USD 1,655 09/21/16 (84 )
BNP Paribas NOK 5,288   USD 651 09/21/16 24  
BNP Paribas SEK 2,000   USD 243 09/21/16 9  

 

See accompanying notes which are an integral part of this quarterly report.

116 Russell Tax-Managed International Equity Fund


Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

 
Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Brown Brothers Harriman GBP 200 USD 258 09/21/16 (7 )
HSBC USD 719 CHF 700 09/21/16 6  
HSBC AUD 600 USD 440 09/21/16 (16 )
National Australia Bank Limited USD 648 AUD 873 09/21/16 14  
National Australia Bank Limited USD 323 CAD 413 09/21/16 (7 )
National Australia Bank Limited USD 1,012 GBP 694 09/21/16 (93 )
National Australia Bank Limited USD 667 HKD 5,175 09/21/16 —  
National Australia Bank Limited USD 4,031 JPY 431,200 09/21/16 202  
National Australia Bank Limited CHF 3,448 USD 3,584 09/21/16 18  
National Australia Bank Limited GBP 2,122 USD 3,097 09/21/16 286  
National Australia Bank Limited JPY 177,125 USD 1,656 09/21/16 (83 )
National Australia Bank Limited NOK 5,288 USD 651 09/21/16 24  
Standard Chartered USD 648 AUD 873 09/21/16 14  
Standard Chartered USD 323 CAD 413 09/21/16 (7 )
Standard Chartered USD 1,012 GBP 694 09/21/16 (93 )
Standard Chartered USD 667 HKD 5,175 09/21/16 —  
Standard Chartered USD 4,033 JPY 431,200 09/21/16 201  
Standard Chartered CHF 3,448 USD 3,585 09/21/16 18  
Standard Chartered GBP 2,122 USD 3,096 09/21/16 286  
Standard Chartered JPY 177,125 USD 1,657 09/21/16 (83 )
Standard Chartered NOK 5,288 USD 651 09/21/16 25  
State Street USD 148 AUD 200 09/21/16 3  
State Street USD 3,368 AUD 4,500 09/21/16 47  
State Street USD 4,776 AUD 6,500 09/21/16 156  
State Street USD 8,551 AUD 11,525 09/21/16 195  
State Street USD 77 CAD 100 09/21/16 —  
State Street USD 114 CAD 150 09/21/16 1  
State Street USD 6,232 CAD 8,000 09/21/16 (103 )
State Street USD 9,212 CAD 12,000 09/21/16 (19 )
State Street USD 9,822 CAD 12,571 09/21/16 (191 )
State Street USD 204 CHF 200 09/21/16 3  
State Street USD 418 CHF 400 09/21/16 (4 )
State Street USD 1,114 DKK 7,500 09/21/16 16  
State Street USD 2,738 EUR 2,400 09/21/16 (49 )
State Street USD 7,399 EUR 6,700 09/21/16 107  
State Street USD 8,969 EUR 7,880 09/21/16 (141 )
State Street USD 133 GBP 100 09/21/16 (1 )
State Street USD 532 GBP 400 09/21/16 (3 )
State Street USD 1,158 GBP 800 09/21/16 (99 )
State Street USD 6,945 GBP 5,300 09/21/16 75  
State Street USD 129 HKD 1,000 09/21/16 —  
State Street USD 293 JPY 30,000 09/21/16 2  
State Street USD 488 JPY 50,000 09/21/16 3  
State Street USD 758 JPY 80,000 09/21/16 27  
State Street USD 2,151 JPY 230,000 09/21/16 107  
State Street USD 4,968 JPY 525,000 09/21/16 187  
State Street USD 916 NOK 7,800 09/21/16 9  
State Street USD 1,520 NZD 2,200 09/21/16 65  
State Street USD 1,541 NZD 2,200 09/21/16 44  
State Street USD 1,245 SEK 10,700 09/21/16 8  
State Street AUD 7,500 USD 5,613 09/21/16 (78 )
State Street CAD 500 USD 382 09/21/16 (1 )
State Street CAD 1,600 USD 1,246 09/21/16 21  
State Street CAD 7,100 USD 5,450 09/21/16 11  
State Street CHF 500 USD 507 09/21/16 (10 )
State Street CHF 1,600 USD 1,655 09/21/16 —  
State Street DKK 400 USD 60 09/21/16 (1 )
State Street DKK 24,000 USD 3,682 09/21/16 67  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 117

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
State Street EUR 7,500 USD 8,283 09/21/16 (120 )
State Street GBP 700 USD 917 09/21/16 (10 )
State Street GBP 1,000 USD 1,332 09/21/16 7  
State Street GBP 1,900 USD 2,751 09/21/16 235  
State Street JPY 160,000 USD 1,497 09/21/16 (74 )
State Street JPY 180,000 USD 1,758 09/21/16 (9 )
State Street JPY 330,000 USD 3,123 09/21/16 (117 )
State Street NOK 11,000 USD 1,345 09/21/16 41  
State Street SEK 21,000 USD 2,597 09/21/16 137  
UBS USD 4,030 JPY 431,200 09/21/16 204  
UBS GBP 2,122 USD 3,091 09/21/16 280  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts           2,474  

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Argentina $ 3,355 $ — $ — $ — $   3,355
Australia   —   10,253   —   —     10,253
Austria   —   594   —   —     594
Belgium   —   3,428   —   —     3,428
Bermuda   —   346   —   —     346
Brazil   16,927   —   —   —     16,927
Canada   21,651   —   —   —     21,651
Chile   478   2,254   —   —     2,732
China   11,060   24,854   —   —     35,914
Curacao   —   64   —   —     64
Denmark   —   7,293   —   —     7,293
Egypt   —   —   —   —     —
Finland   —   1,651   —   —     1,651
France   201   37,490   —   —     37,691
Germany   —   22,702   —   —     22,702
Greece   —   834   —   —     834
Hong Kong   4,352   13,423   —   —     17,775
Hungary   —   1,878   —   —     1,878
India   11,744   4,722   —   —     16,466
Indonesia   —   2,605   —   —     2,605
Ireland   4,001   78   —   —     4,079
Israel   252   632   —   —     884
Italy   —   8,176   —   —     8,176
Japan   —   61,764   381   —     62,145
Kazakhstan   189   —   —   —     189
Luxembourg   207   2,299   —   —     2,506
Malaysia   —   290   —   —     290
Mexico   9,776   —   —   —     9,776
Netherlands   1,542   10,643   —   —     12,185
New Zealand   —   146   —   —     146

 

See accompanying notes which are an integral part of this quarterly report.

118 Russell Tax-Managed International Equity Fund

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                  Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Norway   —     2,274     —   —     2,274  
Peru   1,046     —     —   —     1,046  
Philippines   —     2,291     —   —     2,291  
Portugal   —     741     —   —     741  
Russia   9,766     554     —   —     10,320  
Singapore   —     5,304     —   —     5,304  
South Africa   412     3,943     —   —     4,355  
South Korea   1,723     36,247     —   —     37,970  
Spain   —     3,797     —   —     3,797  
Sweden   199     7,855     —   —     8,054  
Switzerland   1,482     49,099     —   —     50,581  
Taiwan   11,115     7,396     —   —     18,511  
Thailand   —     2,459     —   —     2,459  
Turkey   99     3,782     —   —     3,881  
Ukraine   13     —     —   —     13  
United Arab Emirates   —     2,275     —   —     2,275  
United Kingdom   1,602     78,453     —   —     80,055  
United States   3,475     —     —   —     3,475  
Preferred Stocks —   3,832   — —   3,832  
Short-Term Investments —   —   — 23,978   23,978  
Total Investments 116,667   428,721   381 23,978   569,747  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 2,409   —   — —   2,409  
Foreign Currency Exchange Contracts —   4,561   — —   4,561  
Liabilities                            
Futures Contracts (3,364 ) —   — —   (3,364 )
Foreign Currency Exchange Contracts —   (2,087 ) — —   (2,087 )
Total Other Financial Instruments* $ (955 ) $ 2,474   $ — $ — $   1,519  

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 119

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands      
  Fair Value  
Sector Exposure   $  
Consumer Discretionary 78,195
Consumer Staples 46,467
Energy 37,181
Financial Services 116,655
Health Care 39,761
Materials and Processing 46,107
Producer Durables 76,067
Technology 68,782
Utilities 36,554
Short-Term Investments 23,978
Total Investments 569,747

 

See accompanying notes which are an integral part of this quarterly report.

120 Russell Tax-Managed International Equity Fund

 

Russell Investment Company
Russell Tax-Managed International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

See accompanying notes which are an integral part of this quarterly report.

Russell Tax-Managed International Equity Fund 121

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
Long-Term Fixed Income Investments - 77.8%     Series LTN          
Argentina - 1.0%           Zero coupon due 01/01/19 BRL   44,940    10,510
Argentine Republic Government           Zero coupon due 07/01/19 BRL   7,000    1,551
International Bond           Brazil Notas do Tesouro Nacional          
7.500% due 04/22/26 (Þ) 3,386      3,677 Series NTNB          
7.625% due 04/22/46 (Þ) 268      285 6.000% due 05/15/35 BRL   4,150    3,845
Series dscEUR           6.000% due 08/15/50 BRL   3,000    2,866
7.820% due 12/31/33 EUR   4,679    5,325 Series NTNF          
Series EURGDP           10.000% due 01/01/21 BRL   12,890    3,763
1.000% due 12/15/35 (Ê) EUR   60,000    6,829 10.000% due 01/01/23 BRL   15,700    4,496
Series L-GP           10.000% due 01/01/25 BRL   26,370    7,471
6.000% due 03/31/23 1,295      1,539 Marfrig Overseas, Ltd.          
YPF SA           Series REGS          
8.750% due 04/04/24 (Þ) 2,000      2,145 9.500% due 05/04/20 1,800      1,854
          19,800 Vale SA          
Armenia - 0.1%           5.625% due 09/11/42 4,800      4,092
Armenia Government International Bond                     41,436
Series REGS           Canada - 1.4%          
6.000% due 09/30/20 1,000      1,023 1011778 BC Unlimited Liability Co.          
            Term Loan B2          
Austria - 0.1%           4.625% due 01/15/22 (Þ) 905      932
BAWAG PSK Bank fuer Arbeit und                      
Wirtschaft und Oesterreichische           Bank of Nova Scotia (The)          
            1.126% due 06/11/18 (Ê) 1,700      1,700
Postsparkasse AG                      
8.125% due 10/30/23 EUR   1,000    1,387 Burger King          
            3.750% due 12/12/21 (Ê) 1,691      1,697
Raiffeisen Bank International AG                      
6.000% due 10/16/23 EUR   400    456 Cascades, Inc.          
            5.750% due 07/15/23 (Þ) 1,245      1,229
UNIQA Insurance Group AG                      
6.875% due 07/31/43 EUR   800    989 Cott Finance Corp.          
            5.500% due 07/01/24 (Þ) EUR   800    945
          2,832 Eldorado Gold Corp.          
Azerbaijan - 0.1%           6.125% due 12/15/20 (Å) 1,260      1,263
State Oil Co. of the Azerbaijan Republic           First Quantum Minerals, Ltd.          
4.750% due 03/13/23 2,000      1,883 7.250% due 05/15/22 (Þ) 1,695      1,496
            HudBay Minerals, Inc.          
Bahrain - 0.1%           9.500% due 10/01/20 1,415      1,355
Bahrain Government International Bond           Mercer International, Inc.          
7.000% due 01/26/26 (Þ) 2,000      2,080 Series WI          
            7.000% due 12/01/19 1,680      1,701
Belgium - 0.2%           7.750% due 12/01/22 1,050      1,076
Argenta Spaarbank NV                      
3.875% due 05/24/26 EUR   600    692 Mood Media Corp. 1st Lien Term Loan B          
            7.000% due 05/01/19 (Ê) 1,716      1,569
Belfius Bank SA                      
6.000% due 04/04/22 EUR   600    752 Open Text Corp.          
            5.625% due 01/15/23 (Þ) 1,070      1,099
BNP Paribas Fortis SA                      
1.736% due 12/29/49 EUR   750    527 5.875% due 06/01/26 (Þ) 655      681
Ethias SA           Parq Holdings, LP Term Loan          
5.000% due 01/14/26 EUR   800    738 8.500% due 12/17/20 (Ê) 4,230      4,060
Ontex Group NV           Precision Drilling Corp.          
4.750% due 11/15/21 (Þ) EUR   810    964 6.500% due 12/15/21 1,165      1,060
Series REGS           Province of Ontario Canada          
4.750% due 11/15/21 EUR   530    631 0.911% due 11/23/17 (Ê) 750      751
            3.000% due 07/16/18 1,000      1,038
          4,304 1.650% due 09/27/19 600      608
Bermuda - 0.1%           Province of Quebec Canada          
Weatherford International, Ltd.           0.910% due 09/04/18 (Ê) 450      449
7.750% due 06/15/21 1,545      1,460            
4.500% due 04/15/22 95      78 Teck Resources, Ltd.          
            8.500% due 06/01/24 (Þ) 820      892
8.250% due 06/15/23 125      117 Teine Energy, Ltd.          
          1,655 6.875% due 09/30/22 (Þ) 1,210      1,198
Brazil - 2.1%                     26,799
Banco Nacional de Desenvolvimento           Cayman Islands - 0.1%          
Economico e Social           Avago Technologies Cayman Finance,          
5.750% due 09/26/23 (Þ) 950      988 Ltd. 1st Lien Term Loan B1          
Brazil Letras do Tesouro Nacional                      

 

See accompanying notes which are an integral part of this quarterly report.

122 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
4.250% due 02/01/23 (Ê) 2,461      2,461 Egypt - 0.4%          
            Egypt Government International Bond          
Chile - 0.3%           6.875% due 04/30/40 (Þ) 8,000      7,442
Corp. Nacional del Cobre de Chile           Series REGS          
4.500% due 08/13/23 (Þ) 1,000      1,081 6.875% due 04/30/40 1,000      930
4.875% due 11/04/44 (Þ) 4,000      4,344           8,372
Series REGS           El Salvador - 0.4%          
6.150% due 10/24/36 1,000      1,218 El Salvador Government International          
          6,643 Bond          
China - 0.3%           6.375% due 01/18/27 (Þ) 1,500      1,523
China Evergrande Group           Series REGS          
12.000% due 02/17/20 500      546 7.375% due 12/01/19 1,000      1,073
Series REGS           7.750% due 01/24/23 2,400      2,646
8.750% due 10/30/18 4,500      4,635 5.875% due 01/30/25 2,500      2,488
Country Garden Holdings Co., Ltd.           7.650% due 06/15/35 998      1,038
Series REGS                     8,768
7.250% due 04/04/21 300      320 Ethiopia - 0.0%          
          5,501 Ethiopia Government International Bond          
Colombia - 1.2%           6.625% due 12/11/24 (Þ) 1,000      950
Colombia Government International                      
Bond           France - 1.9%          
7.750% due 04/14/21 COP 4,905,000    1,652 BNP Paribas SA          
4.000% due 02/26/24 1,000      1,040 6.500% due 06/29/49 (ƒ) 1,000      1,009
9.850% due 06/28/27 COP 2,077,000    812 6.125% due 12/29/49 (ƒ) EUR   600    669
10.375% due 01/28/33 514      793 BPCE SA          
7.375% due 09/18/37 3,000      3,863 6.750% due 01/29/49 (ƒ) 530      538
5.000% due 06/15/45 500      514 Coface SA          
Colombian Titulos de Tesoreria           4.125% due 03/27/24 EUR   600    721
Series B           Credit Agricole SA          
11.000% due 07/24/20 COP 4,204,000    1,546 6.500% due 04/29/49 (ƒ) EUR   900    998
7.000% due 05/04/22 COP 7,841,000    2,520 7.375% due 10/29/49 (ƒ) 1,000      1,021
10.000% due 07/24/24 COP 10,613,000    3,994 Credit Logement SA          
6.000% due 04/28/28 COP 23,179,000    6,567 0.888% due 03/29/49 (Ê)(ƒ) EUR   1,250    1,048
Ecopetrol SA           Crown European Holdings SA          
5.875% due 09/18/23 300      314 Series REGS          
          23,615 4.000% due 07/15/22 EUR   1,130    1,374
Costa Rica - 0.3%           Elis SA          
Costa Rica Government International           Series REGS          
Bond           3.000% due 04/30/22 EUR   2,430    2,773
4.375% due 04/30/25 (Þ) 2,044      1,962 Groupama SA          
7.000% due 04/04/44 (Þ) 3,000      3,173 6.375% due 05/29/49 (ƒ) EUR   1,000    1,019
Series REGS           Holding Medi-Partenaires SAS          
4.250% due 01/26/23 1,000      973 7.000% due 05/15/20 (Þ) EUR   970    1,139
            Series REGS          
          6,108 7.000% due 05/15/20 EUR   1,910    2,244
Croatia - 0.5%           HomeVi SAS          
Croatia Government International Bond           Series REGS          
6.000% due 01/26/24 (Þ) 2,200      2,435 6.875% due 08/15/21 EUR   2,680    3,191
Series REGS           Kerneos Corporate SAS          
6.625% due 07/14/20 1,200      1,321 5.750% due 03/01/21 (Þ) EUR   1,060    1,238
6.000% due 01/26/24 6,000      6,641 Series REGS          
          10,397 5.750% due 03/01/21 EUR   1,505    1,758
Denmark - 0.0%           La Mondiale SAM          
Sparekassen Sjaelland-Fyn AS           2.409% due 10/29/49 (Å)(Ê)(ƒ) EUR   430    428
10.835% due 09/29/49 (Å)(ƒ) DKK   3,000    442 Linxens France SA 2nd Lien Term Loan          
            9.500% due 07/15/23 1,840      1,842
Dominican Republic - 0.6%           Novafives SAS          
Dominican Republic International Bond           Series REGS          
7.450% due 04/30/44 (Þ) 2,000      2,280 4.500% due 06/30/21 EUR   1,180    1,207
6.850% due 01/27/45 (Þ) 4,000      4,300 Numericable-SFR SA          
Series REGS           Series REGS          
7.500% due 05/06/21 4,000      4,480 5.375% due 05/15/22 EUR   900    1,036
          11,060 5.625% due 05/15/24 EUR   2,785    3,170

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 123

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
Picard Groupe SAS           7.500% due 03/15/24 500      564
4.250% due 08/01/19 (Ê)(Þ) EUR   1,550    1,736           3,284
Series REGS           Hungary - 1.2%          
4.250% due 08/01/19 (Ê) EUR   193    216 Hungary Government International Bond          
Rexel SA           5.750% due 11/22/23 500      575
5.250% due 06/15/20 (Þ) 3,195      3,323 5.375% due 03/25/24 650      735
Sanofi           7.625% due 03/29/41 6,500      9,652
1.250% due 04/10/18 500      503 Series 19/A          
Societe Generale SA           6.500% due 06/24/19 HUF 1,708,670    7,029
6.750% due 04/07/49 (ƒ) EUR   600    659 Series 20/A          
0.290% due 12/29/49 (Å)(Ê)(ƒ) 800      756 7.500% due 11/12/20 HUF   30    —
SPCM SA           Series 25/B          
6.000% due 01/15/22 (Þ) 200      208 5.500% due 06/24/25 HUF 1,445,260    6,308
2.875% due 06/15/23 (Þ) EUR   1,350    1,509           24,299
          37,333 Indonesia - 2.7%          
Gabon - 0.0%           Indonesia Government International          
Gabon Government International Bond           Bond          
6.375% due 12/12/24 (Þ) 500      450 Series REGS          
            8.500% due 10/12/35 3,000      4,512
Germany - 0.8%           7.750% due 01/17/38 500      718
Deutsche Raststaetten Gruppe IV GmbH           Indonesia Treasury Bond          
Series REGS           Series FR56          
6.750% due 12/30/20 EUR   2,195    2,593 8.375% due 09/15/26 IDR 92,218,000    7,780
KfW           Series FR58          
0.787% due 12/29/17 (Ê) 710      710 8.250% due 06/15/32 IDR 7,539,000    614
Norddeutsche Landesbank Girozentrale           Series FR59          
Series REGS           7.000% due 05/15/27 IDR 11,955,000    902
6.250% due 04/10/24 800      683 Series FR64          
Techem Energy Metering Service GmbH           6.125% due 05/15/28 IDR 7,739,000    536
& Co. KG           Series FR65          
7.875% due 10/01/20 (Þ) EUR   560    656 6.625% due 05/15/33 IDR 6,000,000    418
Series REGS           Series FR68          
7.875% due 10/01/20 EUR   2,120    2,485 8.375% due 03/15/34 IDR 39,322,000    3,284
Trionista TopCo GmbH           Series FR70          
Series REGS           8.375% due 03/15/24 IDR     102,466,000   8,488
6.875% due 04/30/21 EUR   3,410    4,013            
Unitymedia Hessen GmbH & Co. KG /           Series FR71          
Unitymedia NRW GmbH           9.000% due 03/15/29 IDR 69,797,000    6,101
5.750% due 01/15/23 (Þ) EUR   648    776 Series FR73          
Series REGS           8.750% due 05/15/31 IDR 70,586,000    6,133
5.500% due 09/15/22 EUR   122    145 Pertamina Persero PT          
5.750% due 01/15/23 EUR   1,514    1,812 Series REGS          
            6.000% due 05/03/42 908      977
5.625% due 04/15/23 EUR   480    575 5.625% due 05/20/43 2,000      2,068
4.000% due 01/15/25 EUR   1,350    1,570 6.450% due 05/30/44 6,000      6,797
          16,018 Perusahaan Listrik Negara PT          
Ghana - 0.3%           Series REGS          
Ghana Government International Bond           5.250% due 10/24/42 4,350      4,379
7.875% due 08/07/23 (Þ) 4,000      3,470           53,707
8.125% due 01/18/26 (Þ) 700      606 Iraq - 0.2%          
10.750% due 10/14/30 (Þ) 1,250      1,360 Iraq International Bond          
          5,436 Series REGS          
Greece - 0.2%           5.800% due 01/15/28 4,750      3,563
Hellenic Republic Government Bond                      
4.750% due 04/17/19 (Þ) EUR   1,100    1,106 Ireland - 0.9%          
Series PSI           Allied Irish Banks PLC          
3.650% due 02/24/20 EUR   2,800    2,152 4.125% due 11/26/25 EUR   1,400    1,498
          3,258 Ardagh Packaging Finance PLC          
Honduras - 0.2%           4.250% due 01/15/22 (Þ) EUR   650    750
Honduras Government International           Series REGS          
Bond           4.250% due 01/15/22 EUR   730    842
Series REGS           Ardagh Packaging Finance PLC /          
8.750% due 12/16/20 2,342      2,720 Ardagh Holdings USA, Inc.          
            6.750% due 05/15/24 (Þ) EUR   1,790    2,096

 

See accompanying notes which are an integral part of this quarterly report.

124 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
Bank of Ireland           Ivory Coast - 0.1%          
10.000% due 12/19/22 EUR   750    1,072 Ivory Coast Government International          
Governor and Company of the Bank of           Bond          
Ireland           Series REGS          
7.375% due 12/29/49 600      651 5.750% due 12/31/32 1,485      1,418
Grifols Worldwide Operations, Ltd.                      
Series WI           Jersey - 0.4%          
5.250% due 04/01/22 2,995      3,122 AA Bond Co., Ltd.          
Irish Life Assurance PLC           5.500% due 07/31/22 (Þ) GBP   1,795    2,318
5.250% due 12/29/49 (ƒ) EUR   600    664 CPUK Finance, Ltd.          
Permanent TSB PLC           7.000% due 08/28/20 (Þ) GBP   1,710    2,392
8.625% due 12/31/49 (ƒ) EUR   600    532 HBOS Capital Funding, LP          
Vimpel Communications Via VIP           6.850% due 03/29/49 (ƒ) 600      605
Finance Ireland, Ltd. OJSC           Lincoln Finance, Ltd.          
Series REGS           6.875% due 04/15/21 (Þ) EUR   620    749
7.748% due 02/02/21 2,600      2,870 Main Capital Funding II, LP          
Vnesheconombank Via VEB Finance           5.750% due 12/29/49 (ƒ) EUR   800    898
PLC           RZB Finance Jersey IV, Ltd.          
Series REGS           1.692% due 05/29/49 (Ê)(ƒ) EUR   400    330
6.902% due 07/09/20 1,500      1,606           7,292
6.025% due 07/05/22 2,500      2,596 Kazakhstan - 0.7%          
          18,299 KazMunayGas National Co. JSC          
Israel - 0.4%           6.375% due 04/09/21 (Þ) 4,000      4,321
Israel Electric Corp., Ltd.           6.000% due 11/07/44 (Þ) 3,000      2,637
6.875% due 06/21/23 (Þ) 3,500      4,188 Series REGS          
Series 6           7.000% due 05/05/20 4,145      4,518
5.000% due 11/12/24 (Þ) 3,000      3,272 5.750% due 04/30/43 2,000      1,950
          7,460 6.000% due 11/07/44 1,000      879
Italy - 1.1%                     14,305
Assicurazioni Generali SpA           Kenya - 0.1%          
5.000% due 06/08/48 EUR   600    685 Kenya Government International Bond          
Banca Monte dei Paschi di Siena SpA           5.875% due 06/24/19 (Þ) 2,000      2,005
5.600% due 09/09/20 EUR   700    618 Series REGS          
Banca Popolare di Milano Scarl           6.875% due 06/24/24 1,000      949
7.125% due 03/01/21 EUR   750    889            
                      2,954
9.000% due 06/29/49 (ƒ) EUR   1,200    1,364 Lebanon - 0.2%          
Banca Popolare di Vicenza                      
Series EMTN           Lebanon Government International Bond          
2.750% due 03/20/20 EUR   500    507 Series REGS          
            8.250% due 04/12/21 3,000      3,251
Banco Popolare SC                      
 
6.000% due 11/05/20 EUR   700    805 Luxembourg - 3.4%          
Enel SpA           Altice Financing SA          
6.500% due 01/10/74 EUR   2,725    3,321 7.500% due 05/15/26 (Þ) 285      288
Intesa Sanpaolo SpA           Series REGS          
5.710% due 01/15/26 (Þ) 1,600      1,594 5.250% due 02/15/23 (Þ) EUR   970    1,112
8.047% due 06/29/49 (ƒ) EUR   300    362 5.250% due 02/15/23 EUR   500    573
7.000% due 12/29/49 (ƒ) EUR   600    655 Altice Luxembourg SA          
Leonardo-Finmeccanica SpA           7.250% due 05/15/22 (Þ) EUR   1,550    1,753
8.000% due 12/16/19 GBP   845    1,305 Series REGS          
LKQ Italia Bondco SpA           7.250% due 05/15/22 EUR   730    825
3.875% due 04/01/24 (Þ) EUR   1,160    1,368 6.250% due 02/15/25 EUR   550    572
Mediobanca SpA           ArcelorMittal          
5.000% due 11/15/20 EUR   800    980 6.500% due 03/01/21 6,595      6,958
Telecom Italia SpA           Capsugel SA          
3.250% due 01/16/23 EUR   4,700    5,719 7.000% due 05/15/19 (Þ) 2,426      2,450
UniCredit SpA           ConvaTec Finance International SA          
8.000% due 04/03/49 (ƒ) 200      171 8.250% due 01/15/19 (Þ) 8,015      8,055
6.750% due 12/29/49 (ƒ) EUR   600    574 ConvaTec Healthcare E SA          
UnipolSai SpA           10.500% due 12/15/18 (Þ) 2,590      2,661
5.750% due 12/31/49 (ƒ) EUR   1,000    1,057 Delta 2 Lux Sarl 2nd Lien Term Loan B          
Veneto Banca SpA           7.750% due 07/29/22 (Ê) 1,995      1,955
9.500% due 12/01/25 EUR   300    284 Delta 2 Lux Sarl Covenant-Lite Term          
          22,258 Loan B3          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 125

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
4.750% due 07/30/21 (Ê) 2,750      2,717 Series 0111          
Dufry Finance SCA           4.160% due 07/15/21 MYR   8,910    2,206
4.500% due 07/15/22 (Þ) EUR   350    413 Series 0114          
4.500% due 08/01/23 (Þ) EUR   870    1,035 4.181% due 07/15/24 MYR   16,630    4,117
Evergreen Skills Lux Sarl           Series 0115          
9.250% due 04/28/22 (Ê) 2,000      1,035 3.955% due 09/15/25 MYR   15,810    4,043
FAGE International / FAGE USA Co.           Series 0207          
5.625% due 08/15/26 (Å) 1,180      1,205 3.814% due 02/15/17 MYR   2,900    758
Gazprom OAO Via Gaz Capital SA           Series 0215          
9.250% due 04/23/19 (Þ) 1,000      1,147 3.795% due 09/30/22 MYR   8,500    2,181
Series REGS           Series 0310          
9.250% due 04/23/19 1,250      1,434 4.498% due 04/15/30 MYR   4,470    1,120
6.510% due 03/07/22 2,000      2,180 Series 0311          
8.625% due 04/28/34 2,000      2,490 4.392% due 04/15/26 MYR   14,740    3,684
Hanesbrands Finance Luxembourg SCA           Series 0314          
3.500% due 06/15/24 (Þ) EUR   1,910    2,216 4.048% due 09/30/21 MYR   9,935    2,572
Intelsat Jackson Holdings SA           Series 0414          
7.250% due 10/15/20 255      186 3.654% due 10/31/19 MYR   3,500    879
7.500% due 04/01/21 1,105      785 Series 0415          
8.000% due 02/15/24 (Þ) 305      291 4.254% due 05/31/35 MYR   4,180    1,029
International Automotive Components           Series 0416          
Group SA           3.620% due 11/30/21 MYR   1,640    412
9.125% due 06/01/18 (Å) 154      152 Series 1/06          
Mallinckrodt International Finance SA           4.262% due 09/15/16 MYR   24,949    6,350
5.750% due 08/01/22 (Þ) 1,515      1,481           34,089
5.625% due 10/15/23 (Å) 82      79 Mexico - 2.8%          
Matterhorn Telecom SA           America Movil SAB de CV          
3.625% due 05/01/22 (Þ) CHF   240    239 6.000% due 06/09/19 MXN   5,210    274
3.875% due 05/01/22 (Þ) EUR   1,215    1,339 Mexican Bonos          
Series REGS           Series M 10          
3.875% due 05/01/22 EUR   1,050    1,157 8.500% due 12/13/18 MXN   35,000    1,997
SIG Combibloc Holdings SCA           Series M 20          
7.750% due 02/15/23 (Þ) EUR   1,845    2,202 10.000% due 12/05/24 MXN   75,765    5,144
SkillsSoft Corp. 1st Lien Term Loan           7.500% due 06/03/27 MXN   78,546    4,668
5.750% due 04/28/21 (Ê) 2,196      1,805 Series M 30          
Stena International SA Covenant-Lite           10.000% due 11/20/36 MXN   61,705    4,645
Term Loan B           Series M          
4.000% due 03/03/21 (Ê) 1,466      1,234 5.000% due 12/11/19 MXN   133,246    7,005
Telenet Finance V Luxembourg SCA           5.750% due 03/05/26 MXN   17,370    913
6.750% due 08/15/24 (Þ) EUR   600    748 7.750% due 05/29/31 MXN   43,944    2,678
Series REGS           7.750% due 11/13/42 MXN   53,020    3,307
6.250% due 08/15/22 EUR   520    624 Mexican Udibonos          
6.750% due 08/15/24 EUR   1,880    2,344 Series S          
Travelport Finance Luxembourg Sarl           4.000% due 06/13/19 MXN   18,066    1,019
Term Loan B           4.000% due 11/15/40 MXN   10,494    640
5.000% due 09/02/21 (Ê) 1,477      1,479            
UniCredit International Bank           Mexico Government International Bond          
Luxembourg SA           5.550% due 01/21/45 1,500      1,800
8.125% due 12/29/49 (ƒ) EUR   1,650    2,058 5.750% due 10/12/10 9,000      9,878
Wind Acquisition Finance SA           Petroleos Mexicanos          
7.000% due 04/23/21 (Þ) EUR   235    262 3.500% due 01/30/23 1,500      1,421
7.375% due 04/23/21 (Þ) 5,060      5,035 6.625% due 06/15/38 4,000      4,110
Series REGS           6.500% due 06/02/41 3,650      3,655
7.000% due 04/23/21 EUR   205    228 5.500% due 06/27/44 3,000      2,715
Xefin Lux SCA           Series 14-2          
Series REGS           7.470% due 11/12/26 MXN   5,330    254
3.750% due 06/01/19 (Ê) EUR   195    217           56,123
          67,019 Mongolia - 0.3%          
Malaysia - 1.7%           Mongolia Government International          
1MDB Global Investments, Ltd.           Bond          
Series REGS           10.875% due 04/06/21 (Þ) 1,850      2,056
4.400% due 03/09/23 5,500      4,738 5.125% due 12/05/22 (Þ) 300      271
Malaysia Government International Bond                      

 

See accompanying notes which are an integral part of this quarterly report.

126 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
Series REGS           6.850% due 06/05/15 4,500      3,436
5.125% due 12/05/22 4,805      4,339 Playa Resorts Holding BV 1st Lien Term          
          6,666 Loan B          
Morocco - 0.1%           4.000% due 08/09/19 (Ê) 732      729
            PortAventura Entertainment Barcelona          
Morocco Government International Bond           BV          
5.500% due 12/11/42 (Þ) 1,250      1,428 5.364% due 12/01/19 (Ê)(Þ) EUR   370    413
 
Mozambique - 0.0%           7.250% due 12/01/20 (Þ) EUR   330    384
Mozambique Government International           Series REGS          
Bond           7.250% due 12/01/20 EUR   1,060    1,233
10.500% due 01/18/23 (Þ) 1,033      728 Republic of Angola Via Northern Lights          
            III BV          
Netherlands - 2.6%           Series REGS          
ABN AMRO Bank NV           7.000% due 08/16/19 609      595
5.750% due 12/29/49 (ƒ) EUR   600    652 Schaeffler Holding Finance BV          
Achmea BV           6.875% due 08/15/18 (Þ) EUR   514    589
6.000% due 11/29/49 (ƒ) EUR   1,000    1,131 Series REGS          
AP NMT Acquisition BV 1st Lien Term           6.875% due 08/15/18 EUR   56    64
Loan           5.750% due 11/15/21 EUR   1,470    1,775
6.750% due 08/13/21 (Ê) 982      816 SNS Bank NV          
Atradius Finance BV           3.750% due 11/05/25 EUR   750    841
5.250% due 09/23/44 EUR   500    468 SRLEV NV          
Axalta Coating Systems US Holdings,           9.000% due 04/15/41 EUR   1,000    1,152
Inc. / Axalta Coating Systems Dutch           Telefonica Europe BV          
Holding B           6.500% due 12/31/49 (ƒ) EUR   1,500    1,794
Series REGS           UPC Holding BV          
5.750% due 02/01/21 EUR   2,530    2,945 Series REGS          
Carlson Wagonlit BV           6.750% due 03/15/23 EUR   1,285    1,553
Series REGS           VimpelCom Holdings BV          
7.500% due 06/15/19 EUR   1,765    2,049 7.504% due 03/01/22 (Þ) 299      331
Darling Global Finance BV           Ziggo Bond Finance BV          
4.750% due 05/30/22 (Þ) EUR   2,310    2,663 4.625% due 01/15/25 (Þ) EUR   1,580    1,747
Delta Lloyd Levensverzekering NV           Series REGS          
9.000% due 08/29/42 EUR   500    636 4.625% due 01/15/25 EUR   705    779
Goodyear Dunlop Tires Europe BV                     50,969
3.750% due 12/15/23 (Þ) EUR   820    969 Nigeria - 0.1%          
Series REGS           Nigeria Government International Bond          
3.750% due 12/15/23 EUR   700    828 Series REGS          
ING Groep NV           6.750% due 01/28/21 1,000      1,000
6.500% due 12/29/49 (ƒ) 600      574            
InterXion Holding NV           Pakistan - 0.6%          
Series REGS           Pakistan Government International Bond          
6.000% due 07/15/20 EUR   2,490    2,939 8.250% due 04/15/24 (Þ) 6,250      6,934
LGE HoldCo VI BV           Series REGS          
Series REGS           7.875% due 03/31/36 6,000      5,847
7.125% due 05/15/24 EUR   100    126           12,781
Majapahit Holding BV           Panama - 0.5%          
Series REGS                      
7.875% due 06/29/37 1,500      1,960 Panama Government International Bond          
            9.375% due 04/01/29 4,500      6,930
Marfrig Holdings Europe BV           6.700% due 01/26/36 1,500      2,031
Series REGS                      
6.875% due 06/24/19 2,000      2,050           8,961
NIBC Bank NV           Paraguay - 0.2%          
7.625% due 10/29/49 (ƒ) 500      503 Paraguay Government International          
OI European Group BV           Bond          
Series REGS           6.100% due 08/11/44 (Þ) 3,551      3,968
4.875% due 03/31/21 EUR   1,115    1,418            
Petrobras Global Finance BV           Peru - 0.5%          
4.375% due 05/20/23 2,900      2,487 Peruvian Government International Bond          
6.250% due 12/14/26 GBP   1,000    1,164 8.750% due 11/21/33 3,000      4,770
            Series REGS          
5.375% due 10/01/29 GBP   1,000    1,047 6.950% due 08/12/31 PEN   5,470    1,782
6.625% due 01/16/34 GBP   500    555 6.900% due 08/12/37 PEN   8,800    2,835
6.875% due 01/20/40 6,728      5,574            
                      9,387

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 127

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
Philippines - 0.3%           5.250% due 02/18/24 (Þ) 1,500      1,712
Philippine Government International           Series REGS          
Bond           5.850% due 05/10/23 500      585
4.950% due 01/15/21 PHP   42,000    954            
9.500% due 02/02/30 3,000      5,201 South Africa - 2.6%         2,297
6.250% due 01/14/36 PHP   20,000    495 Eskom Holdings SOC, Ltd.          
          6,650 Series REGS          
Poland - 1.3%           5.750% due 01/26/21 5,800      5,758
Poland Government International Bond           6.750% due 08/06/23 1,000      1,020
3.000% due 03/17/23 2,000      2,085 7.125% due 02/11/25 6,500      6,631
4.000% due 01/22/24 650      719 South Africa Government International          
Series 0718           Bond          
2.500% due 07/25/18 PLN   1,300    339 Series 2023          
Series 0725           7.750% due 02/28/23 ZAR   206,410    14,431
3.250% due 07/25/25 PLN   31,130    8,267 Series 2032          
Series 0922           8.250% due 03/31/32 ZAR   167,210    11,120
5.750% due 09/23/22 PLN   23,295    7,108 Series 2048          
Series 1020           8.750% due 02/28/48 ZAR   4,830    323
5.250% due 10/25/20 PLN   21,720    6,282 Series R186          
          24,800 10.500% due 12/21/26 ZAR   134,480    10,903
Portugal - 0.0%           Transnet SOC, Ltd.          
Novo Banco SA           9.500% due 05/13/21 (Þ) ZAR   7,700    522
0.566% due 02/27/51 EUR   1,500    113           50,708
            Spain - 0.3%          
Romania - 0.5%           Banco Bilbao Vizcaya Argentaria SA          
Romania Government International Bond           8.875% due 12/29/49 (ƒ) EUR   600    698
Series 10YR           Banco de Sabadell SA          
5.950% due 06/11/21 RON   7,020    2,012 Series EMTN          
Series 10Y           5.625% due 05/06/26 EUR   1,000    1,135
4.750% due 02/24/25 RON   9,835    2,757 Banco Popular Espanol SA          
Series 5Y           3.334% due 12/22/19 (Å)(Ê) EUR   500    534
3.250% due 03/22/21 RON   7,580    1,977 11.500% due 10/29/49 (ƒ) EUR   600    701
Series REGS           Banco Santander SA          
6.750% due 02/07/22 3,000      3,588 6.250% due 03/12/49 (ƒ) EUR   600    597
          10,334 Bankia SA          
Russia - 0.8%           4.000% due 05/22/24 EUR   800    878
Russian Federal Bond - OFZ           BBVA International Preferred SAU          
Series 6208           5.919% due 04/29/49 (ƒ) 800      798
7.500% due 02/27/19 RUB   150,520    2,208 Ibercaja Banco SA          
Series 6211           5.000% due 07/28/25 EUR   700    722
7.000% due 01/25/23 RUB   127,368    1,797 Popular Capital SA          
Series 6212           6.000% due 10/29/49 (ƒ) EUR   700    704
7.050% due 01/19/28 RUB   248,450    3,424 Santander Perpetual SAU          
Series 6214           Series REGS          
6.400% due 05/27/20 RUB   319,230    4,493 6.671% due 10/29/49 (Å)(ƒ) 170      156
Series 6215                     6,923
7.000% due 08/16/23 RUB   108,682    1,529 Sri Lanka - 0.5%          
Russian Federal Inflation Linked Bond           Sri Lanka Government International          
Series 2001           Bond          
2.500% due 08/16/23 RUB   54,813    816 Series REGS          
Russian Federation International Bond           5.875% due 07/25/22 9,600      9,905
Series REGS                      
7.500% due 03/31/30 848      1,035 Sweden - 0.2%          
          15,302 Auris Luxembourg II SA          
Serbia - 0.4%           8.000% due 01/15/23 (Þ) EUR   710    861
Serbia Government International Bond           Series REGS          
Series REGS           8.000% due 01/15/23 EUR   1,515    1,838
5.875% due 12/03/18 1,400      1,487 Skandinaviska Enskilda Banken AB          
7.250% due 09/28/21 5,000      5,784 5.750% due 11/29/49 (ƒ) 600      590
          7,271           3,289
Slovenia - 0.1%           Switzerland - 0.1%          
Slovenia Government International Bond           Credit Suisse Group AG          

 

See accompanying notes which are an integral part of this quarterly report.

128 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value   Amount ($)   Value
  or Shares   $   or Shares   $
Series REGS           6.375% due 12/29/49 (ƒ) GBP   500    622
6.250% due 12/29/49 (ƒ) 600      580 DTEK Finance PLC          
UBS Group AG           Series REGS          
7.125% due 12/29/49 (ƒ) 600      615 7.875% due 04/04/18 500      334
          1,195 HSBC Holdings PLC          
Thailand - 0.9%           6.000% due 12/29/49 (ƒ) EUR   600    683
PTT Exploration & Production PCL           Hyperion Insurance Group, Ltd. Term          
4.875% due 12/29/49 (ƒ)(Þ) 1,000      1,022 Loan B          
Thailand Government International Bond           5.500% due 04/30/22 (Ê) 741      713
3.875% due 06/13/19 THB   114,210    3,493 Iceland Bondco PLC          
3.650% due 12/17/21 THB   255,370    8,061 Series REGS          
3.850% due 12/12/25 THB   157,270    5,196 6.250% due 07/15/21 GBP   1,255    1,507
3.580% due 12/17/27 THB   11,400    371 Ineos Finance PLC          
            4.000% due 05/01/23 (Þ) EUR   2,130    2,417
          18,143 Inovyn Finance PLC          
Turkey - 2.1%           6.250% due 05/15/21 (Þ) EUR   895    1,041
Export Credit Bank of Turkey           Intermediate Capital Group PLC          
5.875% due 04/24/19 (Þ) 7,500      7,766 5.000% due 03/24/23 GBP   685    904
Turkey Government International Bond           International Personal Finance PLC          
10.400% due 03/27/19 TRY   13,520    4,659 5.750% due 04/07/21 EUR   600    574
7.500% due 11/07/19 1,000      1,116 Iron Mountain Europe PLC          
7.000% due 06/05/20 2,000      2,215 6.125% due 09/15/22 (Þ) GBP   1,015    1,395
10.700% due 02/17/21 TRY   13,110    4,589 Series REGS          
7.100% due 03/08/23 TRY   14,780    4,364 6.125% due 09/15/22 GBP   1,400    1,924
7.375% due 02/05/25 1,200      1,425 Liverpool Victoria Friendly Society, Ltd.          
8.000% due 03/12/25 TRY   27,130    8,259 6.500% due 05/22/43 GBP   500    658
6.750% due 05/30/40 1,000      1,164 Lloyds Banking Group PLC          
6.625% due 02/17/45 4,000      4,626 7.625% due 12/29/49 (ƒ) GBP   600    793
Series 5Y           Merlin Entertainments PLC          
6.300% due 02/14/18 TRY   3,770    1,217 2.750% due 03/15/22 (Þ) EUR   680    761
          41,400 Series REGS          
Ukraine - 0.5%           2.750% due 03/15/22 EUR   1,780    1,992
Ukraine Government International Bond           Moto Finance PLC          
7.750% due 09/01/22 (Þ) 783      767 6.375% due 09/01/20 (Þ) GBP   1,350    1,859
7.750% due 09/01/23 (Þ) 3,069      2,989 Old Mutual PLC          
7.750% due 09/01/24 (Þ) 2,960      2,872 7.875% due 11/03/25 GBP   400    576
7.750% due 09/01/25 (Þ) 1,160      1,123 Oschadbank Via SSB #1 PLC          
Series GDP           9.375% due 03/10/23 (Þ) 6,593      6,461
Zero coupon due 05/31/40 (Þ) 6,195      2,092 7.869% due 01/19/24 (Å)(Ê) 2,800      2,297
          9,843 9.625% due 03/20/25 (Þ) 2,400      2,313
United Kingdom - 3.6%           Pension Insurance Corp. PLC          
            6.500% due 07/03/24 GBP   300    390
Aberdeen Asset Management PLC           Privatbank CJSC Via UK SPV Credit          
7.000% due 03/29/49 (ƒ) 600      627 Finance PLC          
Anglo American Capital PLC           11.000% due 02/09/21 3,177      1,986
1.750% due 04/03/18 EUR   825    927 R&R Ice Cream PLC          
3.500% due 03/28/22 EUR   825    917 Series REGS          
Arqiva Broadcast Finance PLC           5.500% due 05/15/20 GBP   1,050    1,423
9.500% due 03/31/20 (Þ) GBP   1,270    1,815 R&R Pik PLC          
Series REGS           9.250% due 05/15/18 (Þ) EUR   1,125    1,261
9.500% due 03/31/20 GBP   925    1,322 Series REGS          
Barclays Bank PLC           9.250% due 05/15/18 EUR   735    824
Series 3           Royal Bank of Scotland Group PLC          
1.500% due 10/29/49 (Ê)(ƒ) GBP   750    647 5.500% due 11/29/49 (ƒ) EUR   800    850
Barclays PLC           Skipton Building Society          
8.000% due 12/15/49 (ƒ) EUR   600    673 6.875% due 04/29/49 (Å)(ƒ) GBP   262    322
Boparan Finance PLC           Synlab Bondco PLC          
Series REGS           6.250% due 07/01/22 (Þ) EUR   1,050    1,250
4.375% due 07/15/21 EUR   320    339 Synlab Unsecured Bondco PLC          
5.500% due 07/15/21 GBP   815    1,003 8.250% due 07/01/23 (Þ) EUR   460    533
Co-Operative Bank PLC           TA MFG., Ltd.          
5.125% due 09/20/17 GBP   600    731 3.625% due 04/15/23 (Þ) EUR   1,665    1,771
Coventry Building Society           Tesco Corporate Treasury Services PLC          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 129

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
  Amount ($)   Value     Amount ($)   Value
  or Shares   $     or Shares   $
2.500% due 07/01/24 EUR   855    977 Alvogen Pharmaceutical US, Inc. Term          
Tesco PLC           Loan          
5.000% due 03/24/23 GBP   375    533 6.000% due 04/02/22 (Ê) 539      539
Tullow Oil PLC           American Airlines, Inc. 1st Lien Term          
6.000% due 11/01/20 (Þ) 1,400      1,148 Loan          
            3.250% due 05/21/20 (Ê) 975      971
Ukreximbank Via Biz Finance PLC           American Airlines, Inc. 1st Lien Term          
7.867% due 02/09/23 (Ê)(Þ) 6,067      5,006            
9.750% due 01/22/25 (Þ) 2,369      2,298 Loan B          
            3.500% due 04/28/23 (Ê) 500      498
Series REGS           American Builders & Contractors Supply          
9.750% due 01/22/25 600      582 Co., Inc.          
Virgin Media Finance PLC           5.625% due 04/15/21 (Þ) 1,985      2,050
4.875% due 02/15/22 1,000      832 American Express Credit Account          
7.000% due 04/15/23 (Þ) GBP   1,200    1,675 Master Trust          
Series REGS           Series 2008-2 Class A          
7.000% due 04/15/23 GBP   1,740    2,429 1.457% due 09/15/20 (Ê) 2,205      2,242
Virgin Media Investment Holdings, Ltd.           American Tire Distributors, Inc.          
1st Lien Term Loan F           10.250% due 03/01/22 (Þ) 3,130      2,876
3.649% due 06/30/23 (Ê) 842      838 AmeriGas Finance LLC / AmeriGas          
Virgin Media Secured Finance PLC           Finance Corp.          
Series REGS           7.000% due 05/20/22 1,920      2,023
6.000% due 04/15/21 GBP   252    348 AmeriGas Partners, LP / AmeriGas          
Vougeot Bidco PLC           Finance Corp.          
7.875% due 07/15/20 (Þ) GBP   160    220 5.625% due 05/20/24 1,535      1,589
Series REGS           Amsurg Corp.          
7.875% due 07/15/20 GBP   2,050    2,822 Series WI          
Worldpay Finance PLC           5.625% due 07/15/22 1,520      1,596
3.750% due 11/15/22 (Þ) EUR   2,100    2,453 Ancestry.com Holdings LLC          
          71,596 9.625% due 10/15/18 (Þ) 6,400      6,528
United States - 28.8%           Ancestry.com, Inc.          
99 Cents Only Stores LLC           11.000% due 12/15/20 3,600      3,861
11.000% due 12/15/19 1,550      841 5.000% due 08/29/22 (Ê) 1,092      1,094
99 Cents Only Stores LLC Covenant-Lite           Anheuser-Busch InBev Finance, Inc.          
Term Loan B2           1.157% due 02/01/19 (Ê) 1,065      1,063
4.500% due 01/13/19 (Ê) 1,429      1,077 Antero Resources Corp.          
ABG Intermediate Holdings 2, LLC 1st           Series WI          
Lien Term Loan           5.125% due 12/01/22 880      821
5.500% due 05/27/21 (Ê) 1,255      1,243 AP Gaming I LLC 1st Lien Term Loan B          
ABG Intermediate Holdings, LLC 2nd           9.250% due 12/20/20 (Ê) 494      462
Lien Term Loan           Apex Tool Group LLC          
9.500% due 05/27/22 (Ê) 493      478 7.000% due 02/01/21 (Þ) 1,690      1,517
Acadia Healthcare Co., Inc.           Apple, Inc.          
Series WI           1.009% due 05/03/18 (Ê) 1,437      1,440
5.625% due 02/15/23 2,165      2,150 Arbor Pharmaceuticals, Inc. 1st Lien          
6.500% due 03/01/24 2,850      2,944 Term Loan B          
Accuvant, Inc. 2nd Lien Term Loan B           6.000% due 06/28/23 1,250      1,225
10.000% due 01/28/23 (Ê) 4,270      4,035 Arctic Glacier USA, Inc. 1st Lien Term          
Active Network, Inc. 1st Lien Term           Loan B          
Loan B           6.000% due 05/13/19 (Ê) 479      462
5.500% due 11/15/20 (Ê) 1,224      1,215 AssuredPartners, Inc. 1st Lien Term          
AECOM           Loan          
Series WI           5.750% due 10/21/22 (Ê) 338      338
5.750% due 10/15/22 2,110      2,221 Asurion LLC Covenant-Lite Term Loan          
AES Corp.           B1          
6.000% due 05/15/26 1,485      1,565 5.000% due 05/24/19 (Ê) 726      727
Albertsons Cos. LLC / Safeway, Inc. /           Asurion LLC Term Loan B4          
New Albertson's, Inc / Albertson's           5.000% due 08/04/22 (Ê) 1,857      1,859
LLC           AT&T, Inc.          
6.625% due 06/15/24 (Þ) 1,170      1,243 5.600% due 05/15/18 440      473
Albertsons LLC 1st Lien Term Loan B4           Avaya, Inc. Term Loan B7          
4.500% due 08/22/21 (Ê) 1,277      1,283 6.250% due 05/29/20 (Ê) 985      741
Alliant Holdings I, LP 1st Lien Term           Avis Budget Car Rental LLC / Avis          
Loan B           Budget Finance, Inc.          
5.000% due 08/14/22 (Ê) 375      375 6.375% due 04/01/24 (Å) 61      62
            Ball Corp.          

 

See accompanying notes which are an integral part of this quarterly report.

130 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
4.375% due 12/15/23 2,990      3,711 Cedar Fair, LP / Canada's Wonderland          
Bank of Montreal           Co. / Magnum Management Corp.          
Series YCD           Series WI          
1.211% due 12/08/17 (Ê)(~) 1,000      1,000 5.375% due 06/01/24 1,045      1,087
Bank of Nova Scotia (The)           Cengage Learning, Inc.          
Series YCD           5.250% due 06/07/23 (Ê) 580      578
1.354% due 03/28/18 (Ê)(~) 280      280 Centene Corp.          
BBB Industries US Holdings, Inc.           Series WI          
9.750% due 11/03/22 (Ê) 250      222 5.625% due 02/15/21 940      993
Belden, Inc.           6.125% due 02/15/24 450      483
5.500% due 04/15/23 (Þ) 105      123 Century Aluminum Co.          
Series REGS           7.500% due 06/01/21 (Þ) 10,395      9,615
5.500% due 04/15/23 1,475      1,732 CenturyLink, Inc.          
Benefit Street Partners CLO III, Ltd.           Series WI          
Series 2013-IIIA Class D           5.625% due 04/01/25 1,275      1,209
5.124% due 01/20/26 (Å)(Ê) 500      434 Charming Charlie, Inc. 1st Lien Term          
Benefit Street Partners CLO IX, Ltd.           Loan B          
Series 2016-9A Class E           9.000% due 12/24/19 (Ê) 824      560
7.470% due 07/20/28 (Å)(Ê) 1,000      872 Chase Issuance Trust          
BioScrip, Inc. 1st Lien Term Loan B           Series 2013-A7 Class A          
6.500% due 07/31/20 (Ê) 2,500      2,379 0.617% due 09/15/20 (Ê) 1,595      1,599
BioScrip, Inc. Term Loan           Series 2014-A6 Class A6          
6.500% due 07/31/20 (Ê) 1,500      1,427 1.260% due 07/15/19 400      401
            Checkout Holding Corp. Covenant-Lite          
Blue Coat Holdings, Inc.           1st Lien Term Loan B          
8.375% due 06/01/23 (Å) 250      281 4.500% due 04/09/21 (Ê) 1,960      1,668
BlueLine Rental Finance Corp.           Checkout Holding Corp. Covenant-Lite          
7.000% due 02/01/19 (Þ) 1,505      1,385 2nd Lien Term Loan          
BMC Software Finance, Inc. 1st Lien           7.750% due 04/09/22 (Ê) 750      507
Term Loan B           Chelsea Petroleum Products I LLC 1st          
5.000% due 09/10/20 (Ê) 940      862 Lien Term Loan B          
BMW US Capital LLC           5.250% due 10/28/22 (Ê) 981      979
1.500% due 04/11/19 (Þ) 2,655      2,673 Cheniere Corpus Christi Holdings LLC          
BMW Vehicle Owner Trust           7.000% due 06/30/24 (Þ) 1,600      1,672
Series 2014-A Class A3           Chevron Corp.          
0.970% due 11/26/18 1,285      1,285 1.126% due 05/16/18 (Ê) 1,500      1,502
Boyd Gaming Corp.           CHS/Community Health Systems, Inc.          
6.375% due 04/01/26 (Þ) 545      581 6.875% due 02/01/22 1,355      1,165
Brazil Loan Trust 1           CHS/Community Health Systems, Inc.          
5.477% due 07/24/23 (Þ) 1,896      1,768 1st Lien Term Loan F          
Brickman Group, Ltd. LLC 1st Lien           3.924% due 12/31/18 (Ê) 878      870
Term Loan B           CHS/Community Health Systems, Inc.          
4.000% due 12/18/20 (Ê) 1,970      1,962 1st Lien Term Loan G          
BWAY Holding Co. 1st Lien Term Loan           3.750% due 12/31/19 (Ê) 1,778      1,748
B           Churchill Downs, Inc.          
5.500% due 08/14/20 (Ê) 470      470 5.375% due 12/15/21 (Þ) 1,190      1,220
Caesars Entertainment Corp. 1st Lien                      
Term Loan B           Ciena Corp. 1st Lien Term Loan          
            4.250% due 04/25/21 (Ê) 500      502
7.000% due 10/11/20 (Ê) 2,452      2,392 Cincinnati Bell, Inc. 1st Lien Term          
Camping World, Inc. 1st Lien Term                      
Loan B           Loan B          
5.750% due 02/20/20 (Ê) 1,325      1,323 4.000% due 09/10/20 (Ê) 1,228      1,226
CareCore National LLC 1st Lien Term           Cision, Inc. Term Loan B          
Loan           7.000% due 05/12/23 1,500      1,431
5.500% due 03/06/21 (Ê) 1,765      1,712 CITGO Petroleum Corp.          
Carlson Travel Holdings, Inc.           6.250% due 08/15/22 (Þ) 1,195      1,153
7.500% due 08/15/19 (Þ) 3,145      3,098 Citibank Credit Card Issuance Trust          
Cast & Crew Payroll LLC 1st Lien Term           Series 2014-A2 Class A2          
Loan           1.020% due 02/22/19 2,600      2,602
4.750% due 08/03/22 (Ê) 750      742 Clear Channel Worldwide Holdings, Inc.          
Cast & Crew Payroll LLC 2nd Lien Term           Series A          
Loan           7.625% due 03/15/20 3,690      3,505
8.750% due 08/03/23 (Ê) 250      235 6.500% due 11/15/22 4,550      4,527
CCO Holdings LLC / CCO Holdings           Series B          
Capital Corp.           7.625% due 03/15/20 1,720      1,703
5.875% due 04/01/24 (Þ) 500      534            

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 131

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Cleaver-Brooks, Inc.           4.625% due 07/15/23 680      422
8.750% due 12/15/19 (Þ) 4,720      4,862 Deutsche Postbank Funding Trust IV          
Cloud Crane LLC           5.983% due 06/29/49 (ƒ) 1,000      1,119
10.125% due 08/01/24 (Å) 800      824 Diamond 1 Finance Corp. / Diamond 2          
Commercial Barge Line Co. 1st Lien           Finance Corp          
Term Loan B           5.875% due 06/15/21 (Å) 177      185
9.750% due 11/12/20 (Ê) 879      822 5.450% due 06/15/23 (Þ) 1,795      1,901
CommScope Holding Co., Inc.           7.125% due 06/15/24 (Å) 126      136
6.625% due 06/01/20 (Þ) 194      201 6.020% due 06/15/26 (Þ) 1,180      1,264
CommScope, Inc.           DISH DBS Corp.          
5.000% due 06/15/21 (Þ) 1,410      1,461 7.750% due 07/01/26 (Þ) 685      710
5.500% due 06/15/24 (Å) 720      749 Series WI          
Communications Sales & Leasing, Inc.           5.875% due 11/15/24 915      883
1st Lien Term Loan B           Dynegy, Inc.          
5.000% due 10/16/22 (Ê) 1,485      1,483 5.875% due 06/01/23 310      279
Compuware Corp. 1st Lien Term Loan B2           Eastman Kodak Co.          
6.250% due 12/15/21 (Ê) 992      950 1.000% due 09/03/19 (Ê) 984      967
Concentra, Inc. 2nd Lien Term Loan B           Education Management LLC Term Loan          
9.000% due 06/01/23 (Ê) 2,050      2,009 B          
Connolly Corp. 2nd Lien Term Loan           2.000% due 07/02/20 294      12
8.000% due 05/14/22 (Ê) 671      657 Emerald 3, Ltd. 2nd Lien Term Loan          
Constellis Holdings LLC / Constellis           8.000% due 05/09/22 800      712
Finance Corp.           Emerald US, Inc. Term Loan B1          
9.750% due 05/15/20 (Å) 500      487 5.000% due 05/09/21 1,000      910
Continental Building Products Operating           EMI Music Publishing Group NA          
Co. LLC 1st Lien Term Loan           Holdings, Inc.          
4.000% due 08/28/20 (Ê) 1,545      1,540 7.625% due 06/15/24 (Þ) 370      397
Continental Resources, Inc.           Endo Finance LLC          
5.000% due 09/15/22 590      552 5.750% due 01/15/22 (Þ) 765      688
4.500% due 04/15/23 350      317 Endo Finance LLC / Endo Finco, Inc.          
3.800% due 06/01/24 650      556 5.375% due 01/15/23 (Þ) 65      56
ConvergeOne Holdings Corp. Covenant-           Energizer Holdings, Inc.          
Lite 1st Lien Term Loan           5.500% due 06/15/25 (Þ) 895      914
6.000% due 06/17/20 (Ê) 245      236 EnergySolutions LLC 1st Lien Term          
Corrections Corp. of America           Loan B          
4.625% due 05/01/23 1,960      1,989 6.750% due 05/29/20 (Ê) 1,193      1,184
Covanta Holding Corp.           Envision Healthcare Corp.          
6.375% due 10/01/22 1,725      1,781 5.125% due 07/01/22 (Þ) 1,350      1,374
CPI Buyer LLC Covenant-Lite 2nd Lien           ESH Hospitality, Inc.          
Term Loan           5.250% due 05/01/25 (Þ) 1,200      1,194
8.500% due 08/18/22 (Å)(Ê) 3,150      2,929 Extraction Oil & Gas Holdings LLC /          
CPI Card Group, Inc. 1st Lien Term           Extraction Finance Corp.          
Loan B           7.875% due 07/15/21 (Å) 1,250      1,250
5.500% due 08/17/22 (Ê) 180      175 Exxon Mobil Corp.          
CPM Holdings, Inc. 2nd Lien Term Loan           0.723% due 03/01/18 (Ê) 2,000      1,997
10.250% due 02/12/22 (Å) 3,070      2,886 Fieldwood Energy LLC 1st Lien Term          
CSC Holdings LLC           Loan          
5.250% due 06/01/24 1,150      1,095 8.000% due 08/31/20 (Ê) 1,120      926
CSRA, Inc. 1st Lien Term Loan B           8.375% due 09/30/20 (Ê) 1,510      881
3.750% due 10/29/22 (Ê) 490      492 Fieldwood Energy LLC 2nd Lien Term          
Cvent, Inc. Term Loan           Loan          
1.000% due 06/03/23(v) 500      500 8.375% due 09/30/20 (Ê) 825      256
DaVita HealthCare Partners, Inc.           First Data Corp.          
5.125% due 07/15/24 1,535      1,585 7.000% due 12/01/23 (Þ) 5,200      5,350
DBP Holding Corp.           5.750% due 01/15/24 (Þ) 1,020      1,025
7.750% due 10/15/20 (Þ) 2,160      1,663 First Data Corp. 1st Lien Term Loan B          
Dell International LLC 1st Lien Term           4.238% due 07/10/22 (Ê) 1,256      1,259
Loan B2           First Quality Finance Co., Inc.          
4.000% due 04/29/20 (Ê) 984      984 4.625% due 05/15/21 (Þ) 1,225      1,202
Dell, Inc. Term Loan B           Ford Credit Auto Owner Trust          
1.000% due 05/24/23 (v) 1,000      1,000 Series 2013-C Class A3          
Denbury Resources, Inc.           0.820% due 12/15/17 61      61
9.000% due 05/15/21 (Þ) 1,040      1,040 Series 2014-A Class A3          
5.500% due 05/01/22 965      613 0.790% due 05/15/18 397      397

 

See accompanying notes which are an integral part of this quarterly report.

132 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Foresight Energy LLC / Foresight Energy           Series 2013-4 Class A4          
Finance Corp.           1.040% due 02/18/20 1,250      1,250
7.875% due 08/15/21 (Å) 13,090      9,228 Series 2014-2 Class A3          
Forum Energy Technologies, Inc.           0.770% due 03/19/18 551      551
6.250% due 10/01/21 1,870      1,744 Series 2015-2 Class A2          
Foundation Building Materials LLC 1st           0.690% due 08/21/17 114      114
Lien Term Loan           Series 2016-2 Class A2          
7.250% due 10/09/22 (Ê) 1,247      1,244 1.130% due 09/17/18 400      401
Foundational Building Materials, LLC                      
2nd Lien Term Loan           HRG Group, Inc.          
11.500% due 09/17/23 (Å)(Ê) 3,020      3,012 7.875% due 07/15/19 707      749
FPC Holdings, Inc. 1st Lien Term Loan           7.750% due 01/15/22 12,343      12,590
5.250% due 11/27/19 (Ê) 978      819 HUB International, Ltd.          
            9.250% due 02/15/21 (Þ) 4,600      4,853
FPC Holdings, Inc. 2nd Lien Term Loan           7.875% due 10/01/21 (Þ) 1,400      1,403
9.250% due 05/27/20 (Å)(Ê) 2,000      1,310            
Frontier Communications Corp.           Hughes Satellite Systems Corp.          
7.125% due 01/15/23 1,010      937 5.250% due 08/01/26 (Å) 380      379
7.625% due 04/15/24 975      899 6.625% due 08/01/26 (Å) 350      347
FullBeauty Brands Holding Corp. 2nd           Hypo Real Estate International Trust I          
Lien Term Loan           5.864% due 06/29/49 (ƒ) 700      769
10.000% due 09/22/23 500      405 Hyundai Auto Receivables Trust          
FullBeauty Brands Holdings Corp. 1st           Series 2014-A Class A3          
Lien Term Loan B           0.790% due 07/16/18 1,138      1,137
5.750% due 10/14/22 (Ê) 748      707 Series 2015-A Class A3          
General Mills, Inc.           1.050% due 04/15/19 500      500
5.650% due 02/15/19 700      778 IMS Health, Inc.          
GENEX Holdings, Inc. 1st Lien Term           4.125% due 04/01/23 (Þ) 2,500      2,894
Loan B           Indigo Merger Sub I, Inc. 1st Lien Term          
5.250% due 05/30/21 (Ê) 483      477 Loan          
GENEX Holdings, Inc. 2nd Lien Term           4.750% due 07/08/21 (Ê) 750      746
Loan           Ingles Markets, Inc.          
8.750% due 05/30/22 (Ê) 250      237 5.750% due 06/15/23 1,500      1,541
GEO Group, Inc. (The)           International Business Machines Corp.          
5.125% due 04/01/23 930      932 1.076% due 08/18/17 (Ê) 750      753
Getty Images, Inc. Covenant-Lite 1st           1.125% due 02/06/18 500      502
Lien Term Loan B           International Wire Group, Inc.          
4.750% due 10/18/19 (Ê) 1,473      1,155 10.750% due 08/01/21 (Å) 1,460      1,405
GLP Capital, LP / GLP Financing II, Inc.           Intrawest Operations Group, LLC 1st          
5.375% due 04/15/26 600      640 Lien Term Loan B          
Goldcup Merger Sub, Inc. 1st Lien Term           5.000% due 12/09/20 (Ê) 1,842      1,845
Loan B           Intrepid Aviation Group Holdings LLC /          
6.000% due 05/03/23 (Ê) 500      502 Intrepid Finance Co.          
Gulfport Energy Corp.           6.875% due 02/15/19 (Þ) 1,985      1,791
Series WI           IPC Corp. 2nd Lien Term Loan          
6.625% due 05/01/23 865      871 10.500% due 02/06/22 (Ê) 500      392
Harland Clarke Holdings Corp.           Iron Mountain US Holdings, Inc.          
6.875% due 03/01/20 (Å) 100      96 5.375% due 06/01/26 (Å) 245      248
Harland Clarke Holdings Corp.           Iron Mountain, Inc.          
Covenant-Lite 1st Lien Term Loan B4           4.375% due 06/01/21 (Å) 245      254
6.993% due 08/04/19 (Ê) 1,882      1,826 J Crew Group, Inc. Covenant-Lite 1st          
Hawaiian Telcom Communications, Inc.           Lien Term Loan B          
Term Loan B           4.000% due 03/05/21 (Ê) 494      350
5.250% due 06/06/19 (Ê) 1,231      1,230 JBS USA LLC          
HCA Holdings, Inc.           7.250% due 06/01/21 (Þ) 1,090      1,125
6.250% due 02/15/21 2,045      2,216 5.875% due 07/15/24 (Þ) 120      119
HCA, Inc.           Jo-Ann Stores LLC          
5.250% due 06/15/26 1,555      1,648 8.125% due 03/15/19 (Þ) 970      947
HD Supply, Inc.           Johnson & Johnson          
5.750% due 04/15/24 (Þ) 2,085      2,220 0.943% due 03/01/19 (Ê) 350      351
HealthSouth Corp.           Joseph T Ryerson & Son, Inc.          
5.750% due 11/01/24 1,280      1,328 11.000% due 05/15/22 (Þ) 3,710      4,044
Heartland Dental Care, LLC 2nd Lien           KFC Holding Co. / Pizza Hut Holdings          
Term Loan           LLC / Taco Bell of America LLC          
9.750% due 06/21/19 (Ê) 5,120      4,877 5.000% due 06/01/24 (Þ) 1,500      1,567
Honda Auto Receivables Owner Trust           Kloeckner Pentaplast of America, Inc.          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 133

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
7.125% due 11/01/20 (Þ) 1,250      1,474 9.125% due 10/01/18 2,360      1,959
Kraton Polymers LLC           Navient Corp.          
1.000% due 01/06/22 (Ê) 190      189 Series MTN          
Lamar Media Corp.           4.875% due 06/17/19 1,920      1,930
5.750% due 02/01/26 (Þ) 1,490      1,598 Navistar, Inc. 1st Lien Term Loan B          
Laredo Petroleum, Inc.           6.500% due 08/07/20 (Ê) 498      468
5.625% due 01/15/22 1,010      914 NBTY, Inc. 1st Lien Term Loan B          
Lattice Semiconductor Corp. 1st Lien           5.000% due 05/05/23 (Ê) 500      498
Term Loan B           Neiman Marcus Group, Ltd. LLC          
5.250% due 03/10/21 (Ê) 1,474      1,442 8.750% due 10/15/21 (Þ) 1,835      1,450
Level 3 Financing, Inc.           Neptune Finco Corp. 1st Lien Term          
Series WI           Loan B          
5.375% due 08/15/22 540      567 5.000% due 10/09/22 (Ê) 748      753
5.375% due 01/15/24 925      970 New Millennium Holdco, Inc. 1st Lien          
Level 3 Financing, Inc. Term Loan B2           Term Loan          
3.500% due 05/31/22 (Ê) 1,000      1,003 7.500% due 12/21/20 (Ê) 506      357
LifePoint Health, Inc.           Newfield Exploration Co.          
5.500% due 12/01/21 1,210      1,270 5.625% due 07/01/24 100      99
5.375% due 05/01/24 (Þ) 1,435      1,467 5.375% due 01/01/26 410      392
Linn Energy LLC / Linn Energy Finance           Nielsen Finance LLC / Nielsen Finance          
Corp.           Co.          
12.000% due 12/15/20 (Þ) 1,248      463 5.000% due 04/15/22 (Þ) 1,055      1,088
LTS Buyer LLC 2nd Lien Term Loan           Nissan Auto Receivables Owner Trust          
8.000% due 04/01/21 (Ê) 1,550      1,546 Series 2013-C Class A3          
MacDermid, Inc. 1st Lien Term Loan B2           0.670% due 08/15/18 546      545
5.500% due 06/07/20 (Ê) 1,970      1,968 Series 2014-A Class A3          
Match Group, Inc.           0.720% due 08/15/18 367      367
6.375% due 06/01/24 (Å) 369      394 Series 2016-A Class A2A          
Match Group, Inc. 1st Lien Term Loan           1.060% due 02/15/19 500      500
B1           North American Lifting Holdings, Inc.          
5.500% due 10/27/22 (Ê) 396      399 1st Lien Term Loan          
MCC Iowa LLC 1st Lien Term Loan H           5.500% due 11/27/20 (Ê) 975      736
3.250% due 01/29/21 (Ê) 1,477      1,476 North American Lifting Holdings, Inc.          
Meccanica Holdings USA, Inc.           Covenant-Lite 2nd Lien Term Loan          
6.250% due 07/15/19 (Þ) 965      1,061 10.000% due 11/27/21 (Ê) 250      163
            North Atlantic Trading Co., Inc. 1st Lien          
MEDNAX, Inc.           Term Loan B          
5.250% due 12/01/23 (Å) 1,395      1,454 9.000% due 01/13/20 (Ê) 2,361      2,335
Merck & Co., Inc.           Novelis, Inc.          
0.986% due 05/18/18 (Ê) 2,275      2,284 8.750% due 12/15/20 2,975      3,101
Mergermarket USA, Inc. 1st Lien Term                      
Loan           NRG Energy, Inc.          
4.500% due 02/04/21 (Ê) 874      852 6.250% due 07/15/22 285      286
MGM Growth Properties Operating           6.625% due 03/15/23 900      907
Partnership, LP 1st Lien Term Loan B           Nuance Communications, Inc.          
4.000% due 04/25/23 (Ê) 499      502 6.000% due 07/01/24 (Þ) 2,550      2,639
Microsoft Corp.           Numericable US LLC Term Loan B6          
1.300% due 11/03/18 1,530      1,541 4.750% due 02/10/23 (Ê) 498      498
MPH Acquisition Holdings LLC           Numericable US LLC Term Loan B7          
7.125% due 06/01/24 (Þ) 2,100      2,240 5.000% due 01/31/24 (Ê) 499      499
MPT Operating Partnership, LP / MPT           NVA Holdings, Inc. 2nd Lien Term Loan          
Finance Corp.           8.000% due 08/14/22 (Ê) 1,160      1,152
4.000% due 08/19/22 1,000      1,186 Oasis Petroleum, Inc.          
6.375% due 03/01/24 1,295      1,412 6.875% due 03/15/22 980      855
MSC.Software Corp. 1st Lien Term Loan           6.875% due 01/15/23 1,455      1,222
5.000% due 05/29/20 (Ê) 1,470      1,415 Opal Acquisition, Inc.          
MultiPlan, Inc. 1st Lien Term Loan B           8.875% due 12/15/21 (Þ) 6,460      5,233
5.000% due 05/25/23 (Ê) 750      758 Optimas OE Solutions Holding LLC /          
Nathan's Famous, Inc.           Optimas OE Solutions, Inc.          
10.000% due 03/15/20 (Þ) 2,565      2,757 8.625% due 06/01/21 (Þ) 2,960      2,238
National Vision, Inc. 2nd Lien Term           PACCAR Financial Corp.          
Loan           1.280% due 12/06/18 (Ê) 275      276
6.750% due 03/13/22 (Ê) 380      343 Party City Holdings, Inc.          
Natural Resource Partners, LP / NRP           6.125% due 08/15/23 (Þ) 1,850      1,947
Finance Corp.           Patterson Co. 2nd Lien Term Loan          

 

See accompanying notes which are an integral part of this quarterly report.

134 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
9.500% due 08/28/23 (Å)(Ê) 3,490      3,403 Realogy Group LLC 1st Lien Term Loan          
Pelican Products, Inc. Covenant-Lite 1st           B          
Lien Term Loan           3.750% due 07/14/22 (Ê) 375      377
5.250% due 04/11/20 (Ê) 968      948 Regatta V Funding, Ltd.          
Petco Animal Supplies, Inc. 1st Lien           Series 2014-1A Class D          
Term Loan B1           5.519% due 10/25/26 (Å)(Ê) 671      566
5.000% due 01/26/23 (Ê) 413      416 RegionalCare Hospital Partners          
PetSmart, Inc. 1st Lien Term Loan B           Holdings, Inc.          
4.250% due 03/10/22 (Ê) 1,975      1,978 8.250% due 05/01/23 (Þ) 5,955      6,201
PFS Acquisition LLC 2nd Lien Term           Renaissance Learning, Inc. 1st Lien          
Loan           Term Loan          
8.250% due 01/31/22 (Ê) 7,390      5,124 4.500% due 04/09/21 (Ê) 978      969
PGX Holdings, Inc. Covenant-Lite 1st           Rent-A-Center, Inc.          
Lien Term Loan           6.625% due 11/15/20 1,700      1,589
5.750% due 08/21/20 (Ê) 475      473 4.750% due 05/01/21 370      311
PHI, Inc.           RentPath, Inc. 1st Lien Term Loan          
5.250% due 03/15/19 1,610      1,481 6.250% due 12/17/21 (Ê) 1,970      1,832
Pilgrim's Pride Corp.           Revlon Consumer Products Corp.          
5.750% due 03/15/25 (Þ) 1,065      1,078 5.750% due 02/15/21 3,480      3,532
Pinnacle Entertainment, Inc. Term Loan           Reynolds Group Issuer, Inc. / Reynolds          
B           Group Issuer LLC / Reynolds Group          
3.750% due 04/28/23 250      250 Issuer Lu          
Pipeline Supply and Service LLC 1st           5.750% due 10/15/20 1,355      1,399
Lien Term Loan B           5.125% due 07/15/23 (Þ) 955      985
5.500% due 01/28/20 (Ê) 489      342 7.000% due 07/15/24 (Þ) 910      962
Plantronics, Inc.           Rite Aid Corp.          
5.500% due 05/31/23 (Þ) 900      911 6.125% due 04/01/23 (Þ) 1,125      1,194
Plastipak Holdings, Inc.           Riverbed Technology, Inc. 1st Lien Term          
6.500% due 10/01/21 (Þ) 1,180      1,209 Loan B          
Post Holdings, Inc.           5.000% due 04/27/22 (Ê) 1,951      1,960
6.000% due 12/15/22 (Þ) 1,165      1,229 Rovi Solutions Corp. Covenant-Lite 1st          
7.750% due 03/15/24 (Þ) 55      61 Lien Term Loan B          
5.000% due 08/15/26 (Å) 1,435      1,431 3.750% due 07/02/21 (Ê) 980      973
Pre-Paid Legal Services, Inc. 2nd Lien           Royal Oak Enterprises LLC Term Loan B          
Term Loan           5.750% due 06/16/23 1,000      997
10.250% due 07/01/20 (Ê) 500      495 RP Crown Parent LLC 1st Lien Term          
Prime Security Services Borrower LLC           Loan B          
Term Loan B1           6.000% due 12/21/18 (Ê) 975      943
4.750% due 04/21/22 (Ê) 125      126 RPI Finance Trust 1st Lien Term Loan          
PSPC Escrow Corp.           B4          
6.000% due 02/01/23 (Þ) 810      788 3.500% due 12/11/20 985      989
Series REGS           Sabine Pass Liquefaction LLC          
6.000% due 02/01/23 1,495      1,454 5.625% due 02/01/21 1,372      1,417
Puttable Floating Option Taxable Notes           5.625% due 04/15/23 165      168
General Obligation Unlimited           5.875% due 06/30/26 (Þ) 850      872
0.740% due 08/01/49 (Ê)(Þ) 300      300 Series WI          
Qualitytech, LP / QTS Finance Corp.           5.625% due 03/01/25 5,535      5,651
Series WI           Samsonite International SA Term Loan B          
5.875% due 08/01/22 2,580      2,644 4.000% due 04/05/23 1,000      1,010
Quincy Newspapers, Inc. 1st Lien Term           Scientific Games International, Inc.          
Loan B           7.000% due 01/01/22 (Þ) 1,700      1,768
5.500% due 11/02/22 (Ê) 490      491 Scientific Games International, Inc.          
Radio One, Inc.           Covenant-Lite 1st Lien Term Loan B1          
7.375% due 04/15/22 (Å) 100      100 6.000% due 10/18/20 (Ê) 2,194      2,191
Range Resources Corp.           SCS Holdings, Inc. 1st Lien Term Loan B          
Series WI           6.000% due 10/30/22 (Ê) 494      497
4.875% due 05/15/25 1,235      1,173 Sealed Air Corp.          
RBS Capital Trust B           Series REGS          
6.800% due 12/31/49 (ƒ) 1,000      997 4.500% due 09/15/23 1,670      2,030
RCN Telecom Services LLC / RCN           SeaWorld Parks & Entertainment, Inc.          
Capital Corp.           1st Lien Term Loan B3          
8.500% due 08/15/20 (Þ) 5,441      5,699 4.000% due 05/14/20 (Ê) 440      440
Real Alloy Holding, Inc.           Sequa Corp.          
10.000% due 01/15/19 (Þ) 5,010      5,035 7.000% due 12/15/17 (Þ) 2,095      335

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 135

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Serta Simmons Bedding LLC           8.750% due 11/12/21 (Ê) 500      470
8.125% due 10/01/20 (Þ) 3,020      3,156 TCH-2 Holdings, LLC 1st Lien Term          
SESI LLC           Loan          
7.125% due 12/15/21 510      495 5.500% due 05/12/21 (Ê) 1,378      1,378
Shale-Inland Holdings LLC / Shale-           Telenet Financing USD LLC          
Inland Finance Corp.           4.250% due 06/30/24 (Ê) 500      501
8.750% due 11/15/19 (Þ) 2,040      1,387 Tempur Sealy International, Inc.          
Signode Industrial Group US, Inc.           5.500% due 06/15/26 (Þ) 2,135      2,160
Covenant-Lite 1st Lien Term Loan B           Tenet Healthcare Corp.          
3.750% due 05/01/21 (Ê) 900      895 4.375% due 10/01/21 1,490      1,486
Simmons Foods, Inc.           Series WI          
7.875% due 10/01/21 (Þ) 1,480      1,365 6.750% due 06/15/23 8,940      8,604
SIRVA Worldwide, Inc. 1st Lien Term           TerraForm AP Acquisition Holdings LLC          
Loan           1.000% due 06/26/22 (Ê) 516      503
7.500% due 03/27/19 (Ê) 2,131      2,105 TerraForm Power Operating LLC          
Six Flags Entertainment Corp.           5.875% due 02/01/23 (Þ) 1,535      1,541
4.875% due 07/31/24 (Þ) 1,855      1,860 Tesoro Logistics, LP / Tesoro Logistics          
SolarWinds Holdings, Inc. 1st Lien Term           Finance Corp.          
Loan B           6.375% due 05/01/24 1,000      1,054
6.500% due 02/05/23 (Ê) 150      151 TIAA CLO I, Ltd.          
Solera LLC / Solera Finance, Inc.           Series 2016-1A Class E1          
10.500% due 03/01/24 (Å) 480      518 8.736% due 07/20/28 (Å)(Ê) 683      614
Solera LLC 1st Lien Term Loan B           T-Mobile USA, Inc.          
5.750% due 03/04/23 (Ê) 470      474 6.542% due 04/28/20 130      134
SourceHOV LLC 1st Lien Term Loan B           6.633% due 04/28/21 285      300
7.750% due 10/31/19 (Ê) 944      742 6.000% due 03/01/23 2,220      2,347
Southwestern Energy Co.           TMS International Corp.          
4.100% due 03/15/22 15      13 7.625% due 10/15/21 (Þ) 2,420      1,742
6.700% due 01/23/25 1,945      1,887 Toyota Auto Receivables Owner Trust          
Sprint Communications, Inc.           Series 2015-B Class A2A          
8.375% due 08/15/17 2,190      2,269 0.770% due 11/15/17 292      292
6.000% due 11/15/22 2,075      1,780 TransDigm, Inc.          
Sprint Corp.           5.500% due 10/15/20 4,390      4,500
Series WI           6.000% due 07/15/22 710      733
7.250% due 09/15/21 3,220      3,005 TreeHouse Foods, Inc.          
Standard Industries, Inc.           6.000% due 02/15/24 (Þ) 1,620      1,741
5.500% due 02/15/23 (Þ) 2,575      2,684            
Steak N' Shake Operations, Inc. 1st Lien           Tribune Media Co. 1st Lien Term Loan B          
Term Loan B           3.750% due 12/27/20 (Ê) 495      496
4.750% due 03/19/21 (Ê) 696      682 Tronox Finance LLC          
Sterling Midco Holdings, Inc. 2nd Lien           6.375% due 08/15/20 795      644
Term Loan           7.500% due 03/15/22 (Þ) 1,370      1,087
Zero coupon due 06/19/23 (Ê) 4,200      4,011 TruGreen Limited Partnership 1st Lien          
Suburban Propane Partners, LP /           Term Loan B          
Suburban Energy Finance Corp.           6.500% due 03/29/23 750      756
7.375% due 08/01/21 1,225      1,274 United Airlines, Inc. 1st Lien Term          
Suburban Propane Partners, LP/           Loan B          
Suburban Energy Finance Corp.           3.250% due 04/01/19 (Ê) 975      974
5.750% due 03/01/25 565      562 United Rentals NA, Inc.          
Summit Materials LLC / Summit           7.625% due 04/15/22 1,025      1,095
Materials Finance Corp.           Univision Communications, Inc.          
Series WI           6.750% due 09/15/22 (Þ) 540      576
6.125% due 07/15/23 2,175      2,191 5.125% due 05/15/23 (Þ) 520      534
Summit Midstream Holdings LLC /           UTEX Industries, Inc. Covenant-Lite 1st          
Summit Midstream Finance Corp.           Lien Term Loan B          
5.500% due 08/15/22 240      221 5.000% due 05/22/21 (Ê) 1,176      814
SunCoke Energy Partners, LP / SunCoke           UTEX Industries, Inc. Covenant-Lite          
Energy Partners Finance Corp.           2nd Lien Term Loan B          
7.375% due 02/01/20 (Þ) 2,750      2,337 8.250% due 05/22/22 (Å)(Ê) 1,470      674
Surgery Center Holdings, Inc.           Valeant Pharmaceuticals International,          
8.875% due 04/15/21 (Þ) 2,440      2,599 Inc.          
Surgical Care Affiliates, Inc.           6.750% due 08/15/18 (Þ) 50      49
6.000% due 04/01/23 (Þ) 2,350      2,444 5.375% due 03/15/20 (Þ) 1,800      1,605
TCH-2 Holdings LLC Covenant-Lite 2nd           5.625% due 12/01/21 (Þ) 1,685      1,439
Lien Term Loan           5.875% due 05/15/23 (Þ) 930      774

 

See accompanying notes which are an integral part of this quarterly report.

136 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Valeant Pharmaceuticals International,           Venezuela Government International          
Inc. 1st Lien Term Loan BF1           Bond          
5.000% due 04/02/22 (Ê) 577      573 Series REGS          
Varsity Brands, Inc. 1st Lien Term Loan           13.625% due 08/15/18 1,800      1,118
5.000% due 12/11/21 1,231      1,235 7.000% due 12/01/18 3,000      1,605
Verdesion Life Sciences LLC 1st Lien           7.750% due 10/13/19 4,000      1,915
Term Loan B                     23,572
6.000% due 07/01/20 (Ê) 1,390      1,307 Vietnam - 0.1%          
VEREIT Operating Partnership, LP           Vietnam Government International Bond          
4.875% due 06/01/26 2,750      2,887 6.750% due 01/29/20 (Þ) 1,500      1,686
Vertafore, Inc. 1st Lien Term Loan                      
4.750% due 06/09/23 1,000      1,001 Total Long-Term Fixed Income          
Vince LLC 1st Lien Term Loan B           Investments          
5.750% due 11/27/19 (Ê) 257      240            
Vizient, Inc.           (cost $1,558,898)         1,538,762
10.375% due 03/01/24 (Þ) 4,910      5,536            
VWR Funding, Inc.           Common Stocks - 0.0%          
4.625% due 04/15/22 (Þ) 2,475      2,850 United States - 0.0%          
Series REGS           Education Management Corp.(Þ)   4,460,190   1
4.625% due 04/15/22 405      466 Millennium Health LLC(Æ)   14,862   52
Walter Investment Management Corp.                     53
Series WI                      
7.875% due 12/15/21 1,175      570 Total Common Stocks          
Washington Inventory Service 2nd Lien           (cost $435)         53
Term Loan                      
10.250% due 06/20/19 (Å)(Ê) 2,600      910            
Waste Industries USA, Inc. 1st Lien           Preferred Stocks - 0.3%          
Term Loan B           Netherlands - 0.1%          
3.500% due 02/27/20 (Ê) 500      500 ING Groep NV   52,651   1,373
Watco Cos. LLC / Watco Finance Corp.                      
6.375% due 04/01/23 (Þ) 1,610      1,610 Spain - 0.0%          
Wayne Merger Sub LLC           Santander Finance Preferred SAU   15,850   412
8.250% due 08/01/23 (Å) 4,680      4,662            
Western Digital Corp. 1st Lien Term           United Kingdom - 0.2%          
Loan B           Barclays Bank PLC   90,976   2,338
6.250% due 04/29/23 (Ê) 221      223 HSBC Holdings PLC   24,075   631
William Morris Endeavor Entertainment                     2,969
LLC 1st Lien Term Loan B                      
5.250% due 05/06/21 (Ê) 1,470      1,468 United States - 0.0%          
WMG Acquisition Corp.           Aareal Bank Capital Funding Trust   11,908   341
6.750% due 04/15/22 (Þ) 4,020      4,221 Citigroup Capital XIII(Ê)   10,000   262
Series REGS           Countrywide Capital IV   20,000   504
6.250% due 01/15/21 2,556      2,923 Deutsche Bank Contingent Capital Trust          
World Endurance Holdings 1st Lien           II   10,000   251
Term Loan           Education Management Corp.   2,128   —
5.250% due 06/26/21 (Ê) 985      982           1,358
Xerium Technologies, Inc.                      
9.500% due 08/15/21 (Å) 1,760      1,751 Total Preferred Stocks          
Zayo Group LLC / Zayo Capital, Inc.           (cost $6,299)         6,112
Series WI                      
6.000% due 04/01/23 8,250      8,580            
ZF NA Capital, Inc.           Warrants & Rights - 0.0%          
4.500% due 04/29/22 (Þ) 2,055      2,132 United States - 0.0%          
            Education Management Corp.(Æ)          
 
Venezuela, Bolivarian Republic of - 1.2%     569,902 2021 Warrants   1,564,221   —
Petroleos de Venezuela SA           Total Warrants & Rights          
5.375% due 04/12/27 15,000      5,479            
Series REGS           (cost $—)         —
8.500% due 11/02/17 2,667      2,076            
9.000% due 11/17/21 5,000      2,461 Short-Term Investments - 19.6%          
6.000% due 05/16/24 13,000      4,843 Argentina - 0.2%          
9.750% due 05/17/35 2,000      880 Argentina Bonar Bonds          
5.500% due 04/12/37 9,000      3,195 Series X          
            7.000% due 04/17/17 750   782

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 137

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)    
    Principal Fair     Principal   Fair
  Amount ($) Value     Amount ($)   Value
  or Shares $     or Shares   $
Letras del Banco Central de la Republica       Barton Capital SA          
Argentina       0.490% due 08/08/16 (ç)(Þ)(~) 1,800   1,800
Series ARS       Caisse Centrale Desjardins          
Zero coupon due 08/17/16 ARS 2,520 166 0.400% due 08/02/16 (ç)(Þ)(~) 2,000   2,000
Zero coupon due 09/07/16 ARS 2,520 163 Canadian Imperial Bank of Commerce          
Zero coupon due 09/14/16 ARS 9,420 607 0.390% due 08/02/16 (ç)(~) 2,000   2,000
Zero coupon due 12/21/16 ARS 3,100 188 Cargill, Inc.          
Zero coupon due 12/28/16 ARS 2,330 141 0.410% due 08/05/16 (ç)(Þ)(~) 2,000   2,000
      2,047 Citigroup, Inc.          
Australia - 0.1%       1.306% due 11/15/16 (Ê) 2,150   2,152
Australia & New Zealand Banking       ConocoPhillips Canada Funding Co. I          
Group, Ltd.       5.625% due 10/15/16 1,500   1,513
1.045% due 01/10/17 (Ê)(Þ) 500 500 CRC Funding LLC          
Westpac Banking Corp.       0.924% due 01/05/17 (Þ)(~) 600   598
1.092% due 11/25/16 (Ê) 1,875 1,877 Credit Agricole SA          
      2,377 0.410% due 08/02/16 (ç)(~) 2,100   2,100
Brazil - 0.1%       eBay, Inc.          
Brazil Letras do Tesouro Nacional       0.943% due 07/28/17 (Ê) 125   124
Series LTN       ENI Finance USA, Inc.          
Zero coupon due 10/01/16 BRL 2,760 831 0.760% due 08/01/16 (ç)(Þ)(~) 2,000   2,000
Canada - 0.2%       General Electric Co.          
Ontario Teachers' Finance Trust       0.796% due 02/15/17 (Ê) 2,000   2,001
1.058% due 01/17/17 (Þ)(~) 750 747 General Mills, Inc.          
Royal Bank of Canada       5.700% due 02/15/17 500   512
0.670% due 09/06/16 (Å)(Ê) 1,875 1,875 Gotham Funding Corp.          
Toronto-Dominion Bank (The)       0.520% due 08/22/16 (ç)(Þ)(~) 1,500   1,500
0.999% due 05/02/17 (Ê) 2,000 1,998 Johnson & Johnson          
      4,620 0.744% due 11/28/16 (Ê) 710   710
China - 0.1%       JPMorgan Chase & Co.          
China Government International Bond       Series MTN          
1.400% due 08/18/16 CNY 13,500 2,020 1.076% due 11/18/16 (Ê) 1,620   1,621
Malaysia - 0.1%       Jupiter Securitization Co. LLC          
Malaysia Treasury Bill                  
Series 0416       0.450% due 09/02/16 (ç)(Þ)(~) 2,250   2,249
Zero coupon due 09/15/16 MYR 4,470 1,095 Liberty Street Funding LLC          
Netherlands - 0.1%       0.691% due 10/11/16 (Þ)(~) 1,000   999
Shell International Finance BV       Mizuho Bank, Ltd.          
0.836% due 11/15/16 (Ê) 2,250 2,251 0.450% due 09/01/16 (ç)(~) 750   750
Portugal - 0.0%       National Bank of Canada          
BCP Finance Bank, Ltd.       Zero coupon due 08/26/16 (ç)(Þ)(~) 1,200   1,200
0.535% due 12/21/16 (Å)(Ê) EUR 600 604 1.061% due 05/24/17 (Ê)(~) 800   798
Sweden - 0.0%       Nieuw Amsterdam Receivable Corp.          
Nordea Bank AB       0.551% due 09/15/16 (ç)(Þ)(~) 2,000   1,999
1.250% due 04/04/17 (Þ) 500 500 Ontario Teachers' Finance Trust          
United States - 18.6%       1.017% due 12/02/16 (Þ)(~) 1,000   997
Anheuser-Busch InBev Finance, Inc.       Optima Specialty Steel, Inc.          
0.924% due 01/27/17 (Ê) 820 819 12.500% due 12/15/16 (Å) 2,030   1,725
Anheuser-Busch InBev Worldwide, Inc.       12.000% due 12/30/16 (Å) 3,700   3,002
Zero coupon due 12/09/16 (Þ)(~) 300 299 Pfizer, Inc.          
Antalis SA       0.776% due 05/15/17 (Ê) 1,835   1,837
0.540% due 08/08/16 (ç)(Þ)(~) 500 500 Russell U.S. Cash Management Fund   286,949,195 (8) 286,949
AT&T, Inc.       Sprint Communications, Inc.          
2.400% due 08/15/16 1,820 1,821 9.125% due 03/01/17 410   422
Bank of America NA       Sumitomo Mitsui Banking Corp.          
1.096% due 02/14/17 (Ê) 1,905 1,908 0.610% due 08/02/16 (ç)(~) 500   500
Bank of Tokyo-Mitsubishi UFJ, Ltd.       Toyota Motor Credit Corp.          
0.420% due 08/04/16 (ç)(~) 250 250 0.773% due 10/14/16 (Ê) 1,000   1,000
0.530% due 09/07/16 (ç)(~) 500 500 0.826% due 05/16/17 (Ê) 1,445   1,446

 

See accompanying notes which are an integral part of this quarterly report.

138 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)  
        Principal Fair
      Amount ($) Value
      or Shares $
UBS AG          
Series GMTN          
1.140% due 09/26/16 (Ê)   1,860 1,861
United States Treasury Bills          
0.303% due 08/11/16   10,000 9,999
0.368% due 01/05/17   13,600 13,580
Verizon Communications, Inc.          
Series FRN          
2.183% due 09/15/16 (Ê)   1,875 1,879
Victory Receivables Corp.          
0.510% due 08/04/16 (ç)(Þ)(~)   1,750 1,750
Wells Fargo Bank NA          
Series CD          
1.080% due 04/13/17 (Ê)(~)   1,800 1,800
Working Capital Management Co. LP          
0.440% due 08/03/16 (ç)(Þ)(~)   2,000 2,000
WPX Energy, Inc.          
5.250% due 01/15/17   1,240 1,237
          368,707
Venezuela, Bolivarian Republic of - 0.1%  
Petroleos de Venezuela SA          
Series REGS          
5.250% due 04/12/17   2,600 1,816
Total Short-Term Investments          
(cost $387,941)         386,868
 
Total Investments 97.7%          
(identified cost $1,953,573)         1,931,795
 
Other Assets and Liabilities, Net          
- 2.3%       46,424
Net Assets - 100.0%         1,978,219

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 139

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                      
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities Date     or shares   $   $   $  
3.0%                        
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. 03/15/16   61,000 100.00 61 62  
Banco Popular Espanol SA 06/02/16 EUR 500,000 109.68 548 534  
BCP Finance Bank, Ltd. 04/01/16 EUR 600,000 105.29 632 604  
Benefit Street Partners CLO III, Ltd. 03/15/16   500,000 66.85 334 434  
Benefit Street Partners CLO IX, Ltd. 06/16/16   1,000,000 86.04 860 872  
Blue Coat Holdings, Inc. 05/19/15   250,000 100.00 250 281  
Cloud Crane LLC 07/15/16   800,000 100.45 804 824  
CommScope, Inc. 07/20/16   720,000 105.24 758 749  
Constellis Holdings LLC / Constellis Finance Corp. 05/06/15   500,000 99.61 498 487  
CPI Buyer LLC Covenant-Lite 2nd Lien Term Loan 12/15/14   3,150,000 98.11 3,091 2,929  
CPM Holdings, Inc. 2nd Lien Term Loan 04/02/15   3,070,000 97.50 2,993 2,886  
Diamond 1 Finance Corp. / Diamond 2 Finance Corp 06/08/16   177,000 100.00 177 185  
Diamond 1 Finance Corp. / Diamond 2 Finance Corp 06/08/16   126,000 100.00 126 136  
Eldorado Gold Corp. 07/20/16   1,260,000 101.00 1,273 1,263  
Extraction Oil & Gas Holdings LLC / Extraction Finance Corp. 07/13/16   1,250,000 100.00 1,250 1,250  
FAGE International / FAGE USA Co. 07/28/16   1,180,000 101.35 1,196 1,205  
Foresight Energy LLC / Foresight Energy Finance Corp. 03/31/14   13,090,000 98.60 12,906 9,228  
Foundational Building Materials, LLC 2nd Lien Term Loan 10/07/15   3,020,000 94.00 2,839 3,012  
FPC Holdings, Inc. 2nd Lien Term Loan 05/23/13   2,000,000 98.00 1,960 1,310  
Harland Clarke Holdings Corp. 02/02/16   100,000 85.09 85 96  
Hughes Satellite Systems Corp. 07/20/16   380,000 100.00 380 379  
Hughes Satellite Systems Corp. 07/20/16   350,000 100.00 350 347  
International Automotive Components Group SA 05/09/16   154,000 94.36 145 152  
International Wire Group, Inc. 07/12/16   1,460,000 96.30 1,406 1,405  
Iron Mountain US Holdings, Inc. 05/24/16   245,000 100.00 245 248  
Iron Mountain, Inc. 05/24/16   245,000 100.00 245 254  
La Mondiale SAM 05/27/16 EUR 430,000 96.71 416 428  
Mallinckrodt International Finance SA 09/09/15   82,000 100.00 82 79  
Match Group, Inc. 05/24/16   369,000 100.00 369 394  
MEDNAX, Inc. 07/26/16   1,395,000 104.25 1,454 1,454  
Optima Specialty Steel, Inc. 01/20/15   3,700,000 100.00 3,700 3,002  
Optima Specialty Steel, Inc. 09/22/15   2,030,000 99.61 2,022 1,725  
Oschadbank Via SSB #1 PLC 12/10/15   2,800,000 71.87 2,012 2,297  
Patterson Co. 2nd Lien Term Loan 08/14/15   3,490,000 99.00 3,455 3,403  
Post Holdings, Inc. 07/25/16   1,435,000 100.00 1,435 1,431  
Radio One, Inc. 01/02/16   100,000 92.02 92 100  
Regatta V Funding, Ltd. 03/11/16   671,000 73.67 494 566  
Royal Bank of Canada 11/16/15   1,875,000 99.99 1,875 1,875  
Santander Perpetual SAU 05/09/16   170,000 98.00 167 156  
Skipton Building Society 05/03/16 GBP 262,000 134.13 351 322  
Societe Generale SA 07/20/16   800,000 94.50 756 756  
Solera LLC / Solera Finance, Inc. 02/29/16   480,000 95.16 457 518  
Sparekassen Sjaelland-Fyn AS 04/04/16 DKK 3,000,000 15.28 458 442  
TIAA CLO I, Ltd. 06/03/16   683,000 91.99 628 614  
UTEX Industries, Inc. Covenant-Lite 2nd Lien Term Loan B 05/16/14   1,470,000 99.50 1,463 674  
Washington Inventory Service 2nd Lien Term Loan 01/10/13   2,600,000 97.50 2,535 910  
Wayne Merger Sub LLC 07/15/16   4,680,000 99.41 4,652 4,662  
Xerium Technologies, Inc. 07/26/16   1,760,000 98.54 1,734 1,751  
                      58,691  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.                

 

See accompanying notes which are an integral part of this quarterly report.

140 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
Australia 10 Year Treasury Bond Futures 1,004 AUD 137,894 09/16 1,961  
Euro-Bobl Futures 133 EUR 17,778 09/16 38  
Euro-Bund Futures 25 EUR 4,195 09/16 51  
Euro-Schatz Futures 120 EUR 13,442 09/16 (2 )
Long Gilt Futures 591 GBP 77,392 09/16 6,020  
United States 2 Year Treasury Note Futures 590 USD 129,210 09/16 372  
United States 5 Year Treasury Note Futures 1,139 USD 138,976 09/16 1,209  
United States 10 Year Treasury Note Futures 928 USD 123,468 09/16 1,848  
United States Long Bond Futures 268 USD 46,749 09/16 1,242  
United States Ultra Bond Futures 7 USD 1,334 09/16 112  
Short Positions                  
Canada 10 Year Government Bond Futures 285 CAD 42,317 09/16 62  
Euro-Bund Futures 505 EUR 84,744 09/16 (2,085 )
Japan 10 Year Treasury Bond Futures 50 JPY 7,630,000 09/16 (287 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               10,541  

 

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD   6 BRL 21 08/19/16 —  
Bank of America USD   13 BRL 47 08/19/16 1  
Bank of America USD   37 BRL 123 08/19/16 —  
Bank of America USD   285 BRL 934 08/19/16 1  
Bank of America USD   1,169 BRL 4,201 08/19/16 120  
Bank of America USD   15 CZK 373 08/19/16 —  
Bank of America USD   102 CZK 2,435 08/19/16 (2 )
Bank of America USD   127 CZK 3,046 08/19/16 (1 )
Bank of America USD   951 CZK 23,311 08/19/16 14  
Bank of America USD   3,896 CZK 92,633 08/19/16 (62 )
Bank of America USD   7 HKD 57 08/19/16 —  
Bank of America USD   16 HUF 4,442 08/19/16 —  
Bank of America USD   35 IDR 457,905 08/19/16 —  
Bank of America USD   35 INR 2,370 08/19/16 —  
Bank of America USD   66 INR 4,473 08/19/16 1  
Bank of America USD   142 INR 9,569 08/19/16 2  
Bank of America USD   1,183 INR 80,219 08/19/16 16  
Bank of America USD   128 KRW 149,809 08/19/16 7  
Bank of America USD   166 KRW 191,110 08/19/16 5  
Bank of America USD   946 KRW 1,078,820 08/19/16 24  
Bank of America USD   3,961 KRW 4,664,438 08/19/16 232  
Bank of America USD   79 MXN 1,466 08/19/16 (1 )
Bank of America USD   16 PHP 740 08/19/16 —  
Bank of America USD   1 PLN 3 08/19/16 —  
Bank of America USD   3 PLN 12 08/19/16 —  
Bank of America USD   105 PLN 414 08/19/16 1  
Bank of America USD   952 PLN 3,779 08/19/16 17  
Bank of America USD   4,012 PLN 15,507 08/19/16 (35 )
Bank of America USD   26 RUB 1,668 08/19/16 (1 )
Bank of America USD   38 RUB 2,553 08/19/16 —  
Bank of America USD   283 RUB 18,056 08/19/16 (10 )
Bank of America USD   1,184 RUB 78,431 08/19/16 (1 )
Bank of America USD   6 SGD 8 08/19/16 —  
Bank of America USD   42 SGD 56 08/19/16 —  
Bank of America USD   947 SGD 1,286 08/19/16 12  
Bank of America USD   — TRY 1 08/19/16 —  
Bank of America USD   1 TRY 3 08/19/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 141

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts
Amounts in  thousands

              Unrealized  
              Appreciation  
      Amount   Amount   (Depreciation)  
  Counterparty   Sold   Bought Settlement Date $  
Bank of America   USD 10 TRY 29 08/19/16 —  
Bank of America   USD 32 TRY 95 08/19/16 —  
Bank of America   USD 282 TRY 863 08/19/16 6  
Bank of America   USD 938 TRY 2,875 08/19/16 20  
Bank of America   USD 1,171 TRY 3,552 08/19/16 13  
Bank of America   USD 3,903 TRY 11,840 08/19/16 44  
Bank of America   USD 12 TWD 382 08/19/16 —  
Bank of America   USD 15 ZAR 227 08/19/16 3  
Bank of America   USD 286 ZAR 4,100 08/19/16 9  
Bank of America   BRL 37 USD 11 08/19/16 —  
Bank of America   BRL 69 USD 21 08/19/16 —  
Bank of America   BRL 156 USD 44 08/19/16 (4 )
Bank of America   BRL 3,114 USD 951 08/19/16 (4 )
Bank of America   BRL 14,003 USD 3,896 08/19/16 (397 )
Bank of America   CZK 730 USD 31 08/19/16 —  
Bank of America   CZK 914 USD 38 08/19/16 —  
Bank of America   CZK 1,244 USD 51 08/19/16 —  
Bank of America   CZK 6,993 USD 285 08/19/16 (4 )
Bank of America   CZK 27,790 USD 1,169 08/19/16 19  
Bank of America   HKD 216 USD 28 08/19/16 —  
Bank of America   HKD 2,210 USD 285 08/19/16 —  
Bank of America   HUF 6,966 USD 25 08/19/16 —  
Bank of America   HUF 8,356 USD 30 08/19/16 —  
Bank of America   HUF 81,607 USD 286 08/19/16 (8 )
Bank of America   HUF 324,560 USD 1,168 08/19/16 1  
Bank of America   IDR 1,133,852 USD 84 08/19/16 (2 )
Bank of America   IDR 2,134,084 USD 162 08/19/16 (1 )
Bank of America   IDR 12,434,550 USD 943 08/19/16 (4 )
Bank of America   IDR 53,342,830 USD 3,945 08/19/16 (118 )
Bank of America   IDR 170,833,000 USD 12,883 08/29/16 (109 )
Bank of America   INR 879 USD 13 08/19/16 —  
Bank of America   KRW 92,356 USD 81 08/19/16 (2 )
Bank of America   MXN 4,915 USD 259 08/19/16 (3 )
Bank of America   MXN 17,658 USD 950 08/19/16 10  
Bank of America   MXN 72,074 USD 3,921 08/19/16 84  
Bank of America   PHP 1,891 USD 41 08/19/16 —  
Bank of America   PHP 13,922 USD 293 08/19/16 (3 )
Bank of America   PHP 44,588 USD 943 08/19/16 (4 )
Bank of America   PHP 187,171 USD 4,011 08/19/16 34  
Bank of America   PLN 3 USD 1 08/19/16 —  
Bank of America   PLN 214 USD 54 08/19/16 (1 )
Bank of America   RUB 460 USD 7 08/19/16 —  
Bank of America   SGD 17 USD 12 08/19/16 —  
Bank of America   SGD 26 USD 19 08/19/16 —  
Bank of America   SGD 386 USD 284 08/19/16 (4 )
Bank of America   SGD 1,649 USD 1,203 08/19/16 (27 )
Bank of America   TRY 20 USD 7 08/19/16 —  
Bank of America   TRY 66 USD 23 08/19/16 1  
Bank of America   TWD 738 USD 23 08/19/16 —  
Bank of America   TWD 1,834 USD 57 08/19/16 (1 )
Bank of America   TWD 9,114 USD 284 08/19/16 (3 )
Bank of America   TWD 39,163 USD 1,201 08/19/16 (31 )
Bank of America   ZAR 275 USD 19 08/19/16 (1 )
Bank of Montreal   USD 474 AUD 634 08/19/16 7  
Bank of Montreal   USD 2,126 AUD 2,808 08/19/16 7  
Bank of Montreal   USD 2,212 JPY 235,798 08/19/16 100  
Bank of Montreal   USD 9,902 JPY 1,042,337 08/19/16 319  
Bank of Montreal   DKK 3,209 USD 475 08/19/16 (7 )
Bank of Montreal   DKK 10,696 USD 1,585 08/19/16 (24 )
Bank of Montreal   DKK 14,352 USD 2,137 08/19/16 (22 )
Bank of Montreal   DKK 47,840 USD 7,122 08/19/16 (73 )
Barclays   USD 850 BRL 2,764 08/02/16 3  
Barclays   USD 955 BRL 3,137 08/02/16 13  

 

See accompanying notes which are an integral part of this quarterly report.

142 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

 
Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Barclays USD 1,432 BRL 4,638 08/02/16 (2 )
Barclays USD 484 COP 1,444,738 08/18/16 (15 )
Barclays USD 290 HUF 82,956 08/18/16 8  
Barclays USD 113 PEN 370 08/18/16 (2 )
Barclays USD 340 PEN 1,126 08/18/16 (5 )
Barclays USD 1,552 PLN 6,185 08/18/16 35  
Barclays USD 1,672 RON 6,832 08/18/16 45  
Barclays USD 1,000 TRY 2,924 08/18/16 (25 )
Barclays USD 1,134 TRY 3,317 08/18/16 (28 )
Barclays BRL 2,764 USD 853 08/02/16 1  
Barclays BRL 3,137 USD 968 08/02/16 1  
Barclays BRL 4,638 USD 1,358 08/02/16 (72 )
Barclays BRL 2,452 USD 750 09/02/16 2  
Barclays BRL 3,137 USD 945 09/02/16 (12 )
Barclays CLP 570,036 USD 863 08/18/16 (6 )
Barclays CLP 759,768 USD 1,136 08/18/16 (23 )
Barclays IDR 19,442,897 USD 1,478 08/18/16 (3 )
Barclays MYR 1,644 USD 413 08/15/16 5  
Barclays PHP 14,452 USD 304 08/18/16 (3 )
Barclays SGD 677 USD 503 08/18/16 (3 )
Barclays TRY 828 USD 278 08/18/16 2  
Barclays TRY 1,680 USD 560 08/18/16 —  
Barclays ZAR 12,489 USD 858 08/18/16 (39 )
Barclays ZAR 19,929 USD 1,367 08/18/16 (64 )
Citibank USD 998 ARS 14,554 08/08/16 (32 )
Citibank USD 1,210 ARS 17,884 09/12/16 (50 )
Citibank USD 160 PHP 7,548 08/18/16 —  
Citibank CLP 267,812 USD 410 08/18/16 2  
Commonwealth Bank of Australia USD 1,583 CAD 2,062 08/19/16 (3 )
Commonwealth Bank of Australia USD 2,216 CAD 2,887 08/19/16 (5 )
Commonwealth Bank of Australia USD 7,128 CAD 9,272 08/19/16 (26 )
Commonwealth Bank of Australia USD 9,979 CAD 12,980 08/19/16 (36 )
Commonwealth Bank of Australia CHF 468 USD 475 08/19/16 (8 )
Commonwealth Bank of Australia CHF 1,560 USD 1,584 08/19/16 (27 )
Commonwealth Bank of Australia CHF 2,108 USD 2,148 08/19/16 (29 )
Commonwealth Bank of Australia CHF 7,027 USD 7,159 08/19/16 (98 )
HSBC USD 840 PEN 2,837 08/18/16 5  
JPMorgan Chase USD 629 ARS 9,230 08/08/16 (17 )
JPMorgan Chase USD 1,290 ARS 20,060 09/28/16 (1 )
JPMorgan Chase USD 954 BRL 3,137 08/02/16 13  
JPMorgan Chase USD 1,432 BRL 4,638 08/02/16 (2 )
JPMorgan Chase USD 484 COP 1,444,738 08/18/16 (15 )
JPMorgan Chase USD 700 COP 2,161,719 08/18/16 2  
JPMorgan Chase USD 930 COP 2,871,115 08/18/16 2  
JPMorgan Chase USD 132 HUF 37,575 08/18/16 3  
JPMorgan Chase USD 5,936 MXN 109,036 08/18/16 (131 )
JPMorgan Chase USD 1,121 MYR 4,464 08/15/16 (14 )
JPMorgan Chase USD 3,647 MYR 14,559 08/15/16 (37 )
JPMorgan Chase USD 2,030 MYR 8,259 08/18/16 18  
JPMorgan Chase USD 113 PEN 370 08/18/16 (2 )
JPMorgan Chase USD 1,552 PLN 6,185 08/18/16 35  
JPMorgan Chase USD 410 RUB 27,199 08/18/16 —  
JPMorgan Chase USD 4,663 THB 164,047 09/19/16 43  
JPMorgan Chase USD 16 TRY 47 08/18/16 —  
JPMorgan Chase USD 1,135 TRY 3,317 08/18/16 (28 )
JPMorgan Chase BRL 3,137 USD 968 08/02/16 1  
JPMorgan Chase BRL 4,638 USD 1,358 08/02/16 (73 )
JPMorgan Chase BRL 3,137 USD 945 09/02/16 (12 )
JPMorgan Chase CLP 570,036 USD 863 08/18/16 (7 )
JPMorgan Chase CLP 759,768 USD 1,137 08/18/16 (21 )
JPMorgan Chase CLP 763,796 USD 1,150 08/18/16 (15 )
JPMorgan Chase IDR 7,680,000 USD 581 08/18/16 (4 )
JPMorgan Chase IDR 19,442,897 USD 1,480 08/18/16 (1 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 143

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts
Amounts in  thousands

            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
JPMorgan Chase MYR 1,654 USD 415 08/15/16 5  
JPMorgan Chase MYR 2,239 USD 550 08/15/16 (5 )
JPMorgan Chase SGD 958 USD 711 08/18/16 (3 )
JPMorgan Chase SGD 1,509 USD 1,121 08/18/16 (4 )
JPMorgan Chase ZAR 12,489 USD 858 08/18/16 (39 )
National Australia Bank Limited GBP 1,160 USD 1,527 08/15/16 (9 )
Royal Bank of Canada USD 475 NZD 675 08/19/16 13  
Royal Bank of Canada USD 2,082 NZD 2,936 08/19/16 37  
Royal Bank of Canada USD 2,214 NZD 3,152 08/19/16 60  
Royal Bank of Canada USD 9,715 NZD 13,703 08/19/16 173  
Royal Bank of Canada ILS 8,558 USD 2,218 08/19/16 (26 )
Royal Bank of Canada ILS 38,570 USD 10,002 08/19/16 (115 )
Standard Chartered USD 310 ARS 5,441 11/23/16 29  
Standard Chartered USD 955 BRL 3,137 08/02/16 13  
Standard Chartered USD 974 BRL 3,242 08/02/16 26  
Standard Chartered USD 1,432 BRL 4,638 08/02/16 (2 )
Standard Chartered USD 796 COP 2,337,710 08/18/16 (37 )
Standard Chartered USD 132 HUF 37,575 08/18/16 3  
Standard Chartered USD 290 HUF 82,956 08/18/16 8  
Standard Chartered USD 360 HUF 102,823 08/18/16 10  
Standard Chartered USD 1,190 HUF 339,480 08/18/16 30  
Standard Chartered USD 524 IDR 6,882,417 08/18/16 —  
Standard Chartered USD 450 MXN 8,364 08/18/16 (5 )
Standard Chartered USD 580 MXN 10,884 08/18/16 —  
Standard Chartered USD 2,440 MXN 46,041 08/18/16 11  
Standard Chartered USD 461 MYR 1,842 08/15/16 (4 )
Standard Chartered USD 500 MYR 2,019 08/15/16 1  
Standard Chartered USD 970 MYR 3,852 08/15/16 (15 )
Standard Chartered USD 2,030 MYR 8,259 08/15/16 18  
Standard Chartered USD 1,552 PLN 6,185 08/18/16 35  
Standard Chartered USD 801 RUB 51,815 08/18/16 (19 )
Standard Chartered USD 400 THB 14,021 08/15/16 2  
Standard Chartered USD 550 THB 19,257 08/18/16 3  
Standard Chartered USD 810 TRY 2,431 08/18/16 1  
Standard Chartered USD 930 TRY 2,850 08/18/16 20  
Standard Chartered USD 1,134 TRY 3,317 08/18/16 (28 )
Standard Chartered BRL 3,137 USD 968 08/02/16 1  
Standard Chartered BRL 3,242 USD 1,001 08/02/16 1  
Standard Chartered BRL 4,638 USD 1,358 08/02/16 (73 )
Standard Chartered BRL 3,137 USD 945 09/02/16 (12 )
Standard Chartered CLP 570,036 USD 862 08/18/16 (7 )
Standard Chartered CLP 759,768 USD 1,136 08/18/16 (23 )
Standard Chartered IDR 17,180,169 USD 1,309 08/03/16 (2 )
Standard Chartered IDR 19,442,897 USD 1,481 08/18/16 (1 )
Standard Chartered MYR 2,506 USD 631 08/15/16 9  
Standard Chartered MYR 3,238 USD 814 08/15/16 11  
Standard Chartered MYR 8,259 USD 2,030 08/18/16 (18 )
Standard Chartered PLN 896 USD 230 08/18/16 —  
Standard Chartered SGD 621 USD 461 08/18/16 (2 )
Standard Chartered SGD 734 USD 544 08/18/16 (3 )
Standard Chartered SGD 923 USD 680 08/18/16 (9 )
Standard Chartered SGD 1,577 USD 1,170 08/18/16 (6 )
Standard Chartered SGD 1,822 USD 1,340 08/18/16 (19 )
Standard Chartered TRY 830 USD 278 08/18/16 2  
Standard Chartered TRY 1,208 USD 406 08/18/16 3  
Standard Chartered ZAR 8,484 USD 610 08/18/16 1  
Standard Chartered ZAR 11,327 USD 789 08/18/16 (24 )
Standard Chartered ZAR 14,080 USD 975 08/18/16 (36 )
Standard Chartered ZAR 39,518 USD 2,677 08/18/16 (160 )
State Street USD 303 CZK 7,412 08/19/16 4  
State Street USD 3,329 EUR 2,980 08/04/16 3  
State Street USD 1,585 EUR 1,438 08/19/16 24  
State Street USD 7,119 EUR 6,432 08/19/16 76  

 

See accompanying notes which are an integral part of this quarterly report.

144 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street USD 1,589 GBP 1,205 08/19/16 7  
State Street USD 7,149 GBP 5,402 08/19/16 2  
State Street USD 322 PLN 1,293 08/19/16 9  
State Street USD 182 SGD 245 08/19/16 1  
State Street USD 4,014 SGD 5,496 08/19/16 85  
State Street USD 58 TRY 170 08/19/16 (1 )
State Street USD 193 TRY 566 08/19/16 (5 )
State Street USD 22 ZAR 324 08/19/16 1  
State Street USD 1,138 ZAR 18,078 08/19/16 160  
State Street CHF 237 USD 244 08/04/16 —  
State Street CZK 2,224 USD 91 08/19/16 (1 )
State Street DKK 3,200 USD 490 09/08/16 8  
State Street EUR 3,700 USD 4,133 08/01/16 (4 )
State Street EUR 913 USD 1,014 08/04/16 (6 )
State Street EUR 128,197 USD 143,017 08/04/16 (318 )
State Street EUR 12,533 USD 13,948 08/15/16 (70 )
State Street EUR 3,000 USD 3,343 09/08/16 (16 )
State Street EUR 35,100 USD 39,940 09/08/16 640  
State Street GBP 19,973 USD 26,113 08/04/16 (321 )
State Street GBP 1,687 USD 2,224 08/19/16 (10 )
State Street GBP 7,562 USD 10,009 08/19/16 (2 )
State Street GBP 1,000 USD 1,457 09/08/16 133  
State Street GBP 3,000 USD 4,335 09/08/16 362  
State Street HKD 474 USD 61 08/19/16 —  
State Street HKD 9,338 USD 1,204 08/19/16 —  
State Street HUF 27,945 USD 99 08/19/16 (2 )
State Street MXN 3,263 USD 176 08/19/16 3  
State Street NOK 13,467 USD 1,585 08/19/16 (11 )
State Street NOK 60,113 USD 7,091 08/19/16 (34 )
State Street PHP 1,040 USD 22 07/20/17 —  
State Street SEK 4,090 USD 476 08/19/16 (2 )
State Street SEK 18,180 USD 2,125 08/19/16 (1 )
State Street SGD 74 USD 54 08/19/16 —  
UBS USD 955 BRL 3,137 08/02/16 13  
UBS USD 1,432 BRL 4,638 08/02/16 (2 )
UBS USD 930 BRL 3,088 09/02/16 12  
UBS USD 5,939 MXN 109,036 08/18/16 (133 )
UBS USD 619 RON 2,469 08/03/16 1  
UBS BRL 3,137 USD 968 08/02/16 1  
UBS BRL 4,638 USD 1,358 08/02/16 (72 )
UBS BRL 3,137 USD 945 09/02/16 (12 )
UBS IDR 19,442,897 USD 1,479 08/18/16 (3 )
UBS SGD 3,014 USD 2,230 08/18/16 (18 )
UBS TRY 60,760 USD 19,530 10/27/16 (408 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts       (684 )

 

Credit Default Swap Contracts              
 
Amounts in thousands                
 
Credit Indices                
        Fund (Pays)/        
        Receives   Termination Fair Value  
Reference Entity Counterparty Notional Amount Fixed Rate   Date $  
CDX Emerging Markets Index Morgan Stanley USD 104,000 1.000 % 06/20/21 (7,430 )
CDX Emerging Markets Index Morgan Stanley USD 43,000 1.000 % 06/20/21 (3,072 )
CDX NA High Yield Index Morgan Stanley USD 43,000 5.000 % 06/20/21 1,745  
CDX NA High Yield Index Morgan Stanley USD 104,000 5.000 % 06/20/21 4,222  
iTraxx Europe Index Morgan Stanley EUR 47,000 5.000 % 06/20/21 4,097  
iTraxx Europe Index Morgan Stanley EUR 19,000 5.000 % 06/20/21 1,656  
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $1,686 (å)           1,218  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 145

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
        Fair Value            
                  Practical    
Portfolio Summary Level 1   Level 2   Level 3   Expedient (a)   Total
Long-Term Fixed Income Investments                      
Argentina $ — $ 19,800 $   — $ — $ 19,800
Armenia   —   1,023     —   —   1,023
Austria   —   2,832     —   —   2,832
Azerbaijan   —   1,883     —   —   1,883
Bahrain   —   2,080     —   —   2,080
Belgium   —   4,304     —   —   4,304
Bermuda   —   1,655     —   —   1,655
Brazil   —   41,436     —   —   41,436
Canada   —   26,799     —   —   26,799
Cayman Islands   —   2,461     —   —   2,461
Chile   —   6,643     —   —   6,643
China   —   5,501     —   —   5,501
Colombia   —   23,615     —   —   23,615
Costa Rica   —   6,108     —   —   6,108
Croatia   —   10,397     —   —   10,397
Denmark   —   —     442   —   442
Dominican Republic   —   11,060     —   —   11,060
Egypt   —   8,372     —   —   8,372
El Salvador   —   8,768     —   —   8,768
Ethiopia   —   950     —   —   950
France   —   37,333     —   —   37,333
Gabon   —   450     —   —   450
Germany   —   16,018     —   —   16,018
Ghana   —   5,436     —   —   5,436
Greece   —   3,258     —   —   3,258
Honduras   —   3,284     —   —   3,284
Hungary   —   24,299     —   —   24,299
Indonesia   —   53,707     —   —   53,707
Iraq   —   3,563     —   —   3,563
Ireland   —   18,299     —   —   18,299
Israel   —   7,460     —   —   7,460
Italy   —   22,258     —   —   22,258
Ivory Coast   —   1,418     —   —   1,418
Jersey   —   7,292     —   —   7,292
Kazakhstan   —   14,305     —   —   14,305
Kenya   —   2,954     —   —   2,954
Lebanon   —   3,251     —   —   3,251
Luxembourg   —   67,019     —   —   67,019
Malaysia   —   34,089     —   —   34,089
Mexico   —   56,123     —   —   56,123
Mongolia   —   6,666     —   —   6,666
Morocco   —   1,428     —   —   1,428
Mozambique   —   728     —   —   728
Netherlands   —   50,969     —   —   50,969
Nigeria   —   1,000     —   —   1,000
Pakistan   —   12,781     —   —   12,781

 

See accompanying notes which are an integral part of this quarterly report.

146 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                      
 
Amounts in thousands                          
          Fair Value            
                    Practica      
Portfolio Summary   Level 1     Level 2     Level 3   Expedient (a)   Total  
Panama   —     8,961     —   —   8,961  
Paraguay   —     3,968     —   —   3,968  
Peru   —     9,387     —   —   9,387  
Philippines   —     6,650     —   —   6,650  
Poland   —     24,800     —   —   24,800  
Portugal   —     113     —   —   113  
Romania   —     10,334     —   —   10,334  
Russia   —     15,302     —   —   15,302  
Serbia   —     7,271     —   —   7,271  
Slovenia   —     2,297     —   —   2,297  
South Africa   —     50,708     —   —   50,708  
Spain   —     6,923     —   —   6,923  
Sri Lanka   —     9,905     —   —   9,905  
Sweden   —     3,289     —   —   3,289  
Switzerland   —     1,195     —   —   1,195  
Thailand   —     18,143     —   —   18,143  
Turkey   —     41,400     —   —   41,400  
Ukraine   —     9,843     —   —   9,843  
United Kingdom   —     71,596     —   —   71,596  
United States   —     569,902     —   —   569,902  
Venezuela, Bolivarian Republic of   —     23,572     —   —   23,572  
Vietnam   —     1,686     —   —   1,686  
Common Stocks —   52   1 — 53  
Preferred Stocks 6,112   —   — — 6,112  
Warrants & Rights —   —   — — —  
Short-Term Investments —   96,119   3,800 286,949 386,868  
Total Investments 6,112   1,634,491   4,243 286,949 1,931,795  
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 12,915   —   — — 12,915  
Foreign Currency Exchange Contracts 4   3,436   — — 3,440  
Credit Default Swap Contracts —   11,720   — — 11,720  
Liabilities                          
Futures Contracts (2,374 ) —   — — (2,374 )
Foreign Currency Exchange Contracts (7 ) (4,117 ) — — (4,124 )
Credit Default Swap Contracts —   (10,502 ) — — (10,502 )
Total Other Financial Instruments* $ 10,538   $ 537   $ — $ — $ 11,075  

 

*  Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the
fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

See accompanying notes which are an integral part of this quarterly report.

Russell Global Opportunistic Credit Fund 147

 

Russell Investment Company
Russell Global Opportunistic Credit Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings          
 
Amounts in thousands            
      Fair Value      
          Practical          
Portfolio Summary Level 1 Level 2   Level 3 Expedient (a) Total

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the
Notes to Quarterly Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the
period ended July 31, 2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

148 Russell Global Opportunistic Credit Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Long-Term Investments - 76.3%           1.520% due 02/16/21 2,720 2,736
Asset-Backed Securities - 8.0%           CCG Receivables Trust          
Access Group, Inc.           Series 2014-1 Class A2          
Series 2003-A Class A2           1.060% due 11/15/21 (Þ) 1,047 1,045
1.225% due 07/01/38 (Ê) 1,204 1,177 Centex Home Equity Loan Trust          
Accredited Mortgage Loan Trust           Series 2002-D Class AF4          
Series 2006-1 Class A4           5.210% due 11/25/28 61 61
0.719% due 04/25/36 (Ê) 3,510 3,130 Series 2006-A Class AV4          
Series 2006-2 Class A4           0.471% due 06/25/36 (Ê) 4,542 4,403
0.706% due 09/25/36 (Ê) 9,855 8,524 Chase Issuance Trust          
American Express Credit Account           Series 2007-A2 Class A2          
Master Trust           0.484% due 04/15/19 (Ê) 2,925 2,923
Series 2014-2 Class A           Series 2014-A2 Class A2          
1.260% due 01/15/20 11,490 11,518 2.770% due 03/15/23 6,750 7,120
AmeriCredit Automobile Receivables                      
Trust           Series 2014-A6 Class A6      
Series 2013-5 Class B           1.260% due 07/15/19     9,865 9,892
1.520% due 01/08/19 1,180 1,181 Series 2014-A8 Class A8      
AMMC CLO 16, Ltd.           0.684% due 11/15/18 (Ê)     10,500 10,504
Series 2015-16A Class A1           Series 2015-A4 Class A          
2.130% due 04/14/27 (Ê)(Þ) 550 549 1.840% due 04/15/22 3,800 3,872
Argent Securities, Inc. Asset-Backed           Series 2015-A7 Class A7          
Pass-Through Certificates           1.620% due 07/15/20 400 404
Series 2005-W4 Class A2D                      
0.567% due 02/25/36 (Ê) 2,733 1,902 Chesapeake Funding LLC          
Asset Backed Securities Corp. Home               Series 2014-1A Class  C      
            1.637% due 03/07/26 (Ê)(Þ)     1,370 1,332
Equity Loan Trust                      
Series 2006-HE5 Class A5           CIT Education Loan Trust          
        Series 2007-1 Class A          
0.686% due 07/25/36 (Ê)     8,729 7,393        
            0.720% due 03/25/42 (Å)(Ê)     3,211 2,934
BA Credit Card Trust                      
Series 2007-A1 Class A1           Citibank Credit Card Issuance Trust          
        Series 2006-A7 Class A7          
5.170% due 06/15/19     9,150 9,329        
            0.694% due 12/17/18 (Ê)     11,480 11,478
Bank of The West Auto Trust                      
Series 2014-1 Class A3           Series 2014-A2 Class A2      
1.090% due 03/15/19 (Þ) 6,732 6,732 1.020% due 02/22/19     11,865 11,872
Bear Stearns Second Lien Trust           Citigroup Mortgage Loan Trust, Inc.          
            Series 2007-WFH1 Class A3          
Series 2007-SV1A Class A2       0.371% due 01/25/37 (Ê) 1,253 1,242
0.517% due 12/25/36 (Å)(Ê)     1,265 1,233            
BMW  Vehicle  Owner  Trust           Series 2007-WFH1 Class A4          
    Series 2013-A Class A3           0.421% due 01/25/37 (Ê) 7,880 7,431
0.670% due 11/27/17 949 948 Conseco Finance Securitizations Corp.          
BNC Mortgage Loan  Trust           Series 2001-4 Class A4          
   Series2007-2Class  A5           7.360% due 08/01/32 1,290 1,375
0.756% due 05/25/37 (Ê) 3,668 2,615 Conseco Financial Corp.          
            Series 1997-7 Class A6          
Brazos Higher  Education Authority, Inc.           6.760% due 07/15/28 78 79
     Series  2010-1 Class A2       Credit-Based Asset Servicing and          
1.529% due 02/25/35 (Ê)     5,000 4,789            
California Republic Auto Receivables           Securitization LLC          
            Series 2003-CB6 Class M1          
Series Trust 2016-1 Class A4           1.489% due 12/25/33 (Ê) 3,056 2,809
        CWABS, Inc. Asset-Backed Certificates          
2.240% due 10/15/21     3,940 4,010 Trust          
Capital Auto Receivables Asset Trust           Series 2006-S8 Class A3          
Series 2013-1 Class B                  
        5.555% due 04/25/36     2,358 2,343
1.290% due 04/20/18     374 374 Series 2007-4 Class A2          
CarFinance Capital Auto Trust                  
Series 2014-1A Class A           5.429% due 04/25/47     95 95
1.460% due 12/17/18 (Þ) 728 728 DRB Prime Student Loan Trust          
CarMaxAuto 2016-2  Class A3           Series 2015-D Class A2          
  Series2016-2  Class t A3           3.200% due 01/25/40 (Þ) 6,888 7,032

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 149

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Dryden 37 Senior Loan Fund           0.349% due 08/25/36 (Ê) 5,226 4,526
Series 2015-37A Class A           Hertz Vehicle  Financing  LLC          
2.128% due 04/15/27 (Å)(Ê) 3,540 3,541    Series  2013-1A Class A1          
Dryden XXV Senior Loan Fund           1.120% due 08/25/17 (Þ) 753 752
Series 2012-25A Class A              Series 2015-2A Class A          
2.008% due 01/15/25 (Ê)(Þ) 4,000 3,990 2.020% due 09/25/19  (Þ) 5,305 5,303
Education Loan Asset-Backed Trust I           Higher Education Funding I          
Series 2013-1 Class B1               Series 2014-1 due 05/25/34 Class A          
1.221% due 11/25/33 (Ê)(Þ) 5,551 5,080 1.712%  due 05/25/34 (Ê)(Þ) 2,918 2,760
Enterprise Fleet Financing LLC           Home Equity Asset Trust          
Series 2016-2 Class A3              Series 2005-9  Class M1          
2.040% due 02/22/22 (Å) 1,675 1,675 0.856%  due 04/25/36 (Ê) 2,977 2,664
EquiFirst Mortgage Loan Trust           Series 2006-3 Class M1          
Series 2003-2 Class M2                  
        0.836% due 07/25/36 (Ê)     3,950 3,325
2.771% due 09/25/33 (Ê)     1,317 1,257 Series 2006-4 Class 2A4          
Fannie Mae Grantor Trust                  
Series 2003-T4 Class 2A5           0.726% due 08/25/36 (Ê)     3,729 3,229
5.045% due 09/26/33 489 555 Honda Auto Receivables Owner Trust          
Federal  Home Loan Mortgage Corp.           Series 2013-4 Class A4          
     Structured  Pass-Through Securities           1.040% due 02/18/20 2,250 2,251
Series 2000-30 Class A5           Series 2014-2 Class A3          
7.639% due 12/25/30 310 334 0.770% due 03/19/18 979 978
Fieldstone Mortgage Investment Trust           Series 2015-2 Class A2          
Series           0.690% due 08/21/17 485 485
Series 2004-4 Class M3                      
2.438% due 10/25/35 (Ê) 2,273 2,163 Series 2015-2 Class A3      
First Franklin Mortgage Loan Asset           1.040% due 02/21/19     6,805 6,805
    Backed Certificates           Series 2015-3 Class A2          
Series 2006-FF18 Class A2B           0.920% due 11/20/17 1,248 1,248
0.331% due 12/25/37 (Ê) 8,292 5,083 Series 2016-2 Class A2          
Ford Credit Auto Owner Trust           1.130% due 09/17/18 4,000 4,005
Series 2013-C Class A3           HSBC Home Equity Loan Trust          
0.820% due 12/15/17 433 432 Series 2007-1 Class AS          
Series 2014-A Class A3           0.366% due 03/20/36 (Ê) 1,777 1,771
0.790% due 05/15/18 2,590 2,589 HSI Asset Securitization Corp. Trust          
 GM Financial Automobile Leasing Trust           Series 2007-WF1 Class 2A4          
     Series 2015-3  Class A3           0.420% due 05/25/37 (Ê) 9,069 7,851
1.690% due 03/20/19 3,140 3,160 Hyundai Auto Receivables Trust          
     Series 2016-2 Class A3           Series 2013-C Class A3          
1.620%  due 09/20/19 2,145 2,156 1.010% due 02/15/18 2,347 2,348
GMACM Home Equity  Loan Trust           Series 2014-A Class A3          
     Series 2007-HE2  Class A2           0.790% due 07/16/18 2,703 2,702
6.054% due 12/25/37 2,662 2,606 Series 2015-C Class A2B          
Series 2007-HE2 Class A3           0.851% due 11/15/18 (Ê) 1,201 1,200
6.193% due 12/25/37 682 671 Series 2015-C Class A3          
Green Tree Financial Corp.           1.460% due 02/18/20 1,730 1,739
Series 1994-1 Class A5           Irwin Home Equity Loan Trust          
7.650% due 04/15/19 21 21 Series 2006-1 Class 2A3          
Greenpoint Manufactured Housing           5.770% due 09/25/35 (Å) 3,377 3,420
Series 1999-1 Class A5           Series 2007-1 Class 2A2          
6.770% due 08/15/29 2,650 2,591 5.960% due 08/25/37 (Å) 1,504 1,536
Series 1999-3 Class 1A7           IXIS Real Estate Capital Trust          
7.270% due 06/15/29 2,658 2,628 Series 2006-HE1 Class A3          
GSAA Trust           0.646% due 03/25/36 (Ê) 1,796 1,107
Series 2006-S1 Class 2M2           Series 2006-HE1 Class A4          
5.850% due 08/25/34 (Å) 3,701 3,197 0.746% due 03/25/36 (Ê) 4,879 3,079
GSAMP Trust           Series 2006-HE2 Class A3          
Series 2006-HE5 Class A2C           0.606% due 08/25/36 (Ê) 652 251

 

See accompanying notes which are an integral part of this quarterly report.

150 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 2006-HE2 Class A4         1.310% due 10/15/19 3,415 3,422
0.706% due 08/25/36 (Ê) 5,390 2,145 Series 2013-C Class A3        
Series 2007-HE1 Class A3         0.670% due 08/15/18 1,247 1,246
0.606% due 05/25/37 (Ê) 7,008 2,633 Series 2014-A Class A3        
JGWPT XXX LLC         0.720% due 08/15/18 2,210 2,208
Series 2013-3A Class A            Series 2016-A Class A2A        
4.080% due 01/17/73 (Þ) 1,983 2,097 1.060%  due 02/15/19 5,000 5,003
JGWPT XXXII LLC         Popular ABS Mortgage Pass-Through        
Series 2014-2A Class A         Trust        
3.610% due 01/17/73 (Þ) 2,405 2,412 Series 2006-D Class A3        
JPMorgan Mortgage Acquisition Trust         0.481% due 11/25/46 (Ê) 5,455 4,828
Series 2006-WF1 Class A4         Prestige Auto Receivables Trust        
6.130% due 07/25/36 5,851 3,266 Series 2014-1A Class A3        
Lehman ABS Manufactured Housing         1.520% due 04/15/20 (Þ) 3,118 3,119
Contract Trust         Purchasing Power Funding LLC        
Series 2001-B Class A6            Series 2015-A Class A1        
6.467% due 04/15/40 423 443 3.500%  due 12/15/19 (Þ) 1,191 1,190
Series 2001-B Class M1            Series 2015-A Class A2        
6.630% due 04/15/40 1,615 1,729 4.750%  due 12/15/19 (Å) 2,320 2,324
Lehman XS Trust         RAMP Trust        
Series 2006-9 Class A1B             Series 2006-RZ1 Class M4        
0.606% due 05/25/46 (Ê) 652 563 1.058%  due 03/25/36  (Ê) 5,000 3,766
Series 2006-13 Class 1A2         Renaissance  Home  Equity  Loan Trust        
0.616% due 09/25/36 (Ê) 669 600     Series 2005-4 Class  A3        
Mastr Asset Backed Securities Trust         5.565% due 02/25/36 91 90
Series 2005-NC2 Class A3             Series 2006-1 Class AF3        
0.946% due 11/25/35 (Ê) 5,214 3,447 5.608%  due 05/25/36 69 44
Series 2006-HE5 Class A3             Series 2006-1 Class AF6        
0.606% due 11/25/36 (Ê) 3,645 2,335 5.746%  due 05/25/36 1,479 971
Series 2006-NC2 Class A4            Series 2006-2 Class AF2        
0.596% due 08/25/36 (Ê) 10,856 5,483 5.762%  due 08/25/36 225 136
Series 2006-NC3 Class A5           Series 2007-1 Class AF2        
0.656% due 10/25/36 (Ê) 6,369 3,897 5.512%  due 04/25/37 4,603 2,248
Mid-State Capital Corp. Trust         Santander Drive Auto Receivables Trust        
Series 2005-1 Class A           Series 2016-1 Class A2A        
5.745% due 01/15/40 1,811 1,940 1.410%  due 07/15/19 4,110 4,116
MSCC Heloc Trust         Saxon Asset Securities Trust        
Series 2007-1 Class A            Series 2007-2 Class A2C        
0.299% due 12/25/31 (Ê) 1,363 1,352 0.686%  due 05/25/47 (Ê) 6,566 4,611
Nationstar Home Equity Loan Trust         Securitized Asset Backed Receivables        
Series 2006-B Class M1         LLC Trust        
0.524% due 09/25/36 (Ê) 5,340 3,983 Series 2007-BR4 Class A2B        
Series 2007-A Class AV4         0.646% due 05/25/37 (Ê) 6,191 3,756
0.424% due 03/25/37 (Ê) 4,290 3,717 Series 2007-BR5 Class A2A        
Navient Student Loan Trust         0.576% due 05/25/37 (Ê) 3,437 2,294
Series 2014-2 Class A         Series 2007-NC1 Class A2C        
1.128% due 03/25/83 (Ê) 5,380 5,194 0.656% due 12/25/36 (Ê) 1,701 924
Series 2014-3 Class A         SLM Private Credit Student Loan Trust        
1.108% due 03/25/83 (Ê) 5,527 5,334 Series 2005-B Class A2        
Nelnet Student Loan Trust         0.814% due 03/15/23 (Ê) 767 761
Series 2014-4A Class A2         SLM Private Education Loan Trust        
1.403% due 11/25/43 (Ê)(Þ) 3,225 2,967 Series 2010-A Class 2A        
Newcastle Mortgage Securities Trust         3.684% due 05/16/44 (Ê)(Þ) 5,542 5,720
Series 2006-1 Class M3         SLM Student Loan Trust        
0.878% due 03/25/36 (Ê) 5,600 4,439 Series 2004-8 Class B        
Nissan Auto Receivables Owner Trust         1.098% due 01/25/40 (Ê) 744 637
Series 2013-B Class A4         Series 2006-2 Class A6        

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 151

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
0.808% due 01/25/41 (Ê) 4,400 4,000 Series 2006-1A Class A4          
Series 2006-8 Class A6           0.423% due 10/28/37 (Ê)(Þ) 4,729 4,337
0.798% due 01/25/41 (Ê) 4,400 3,866 Tidewater Auto Receivables Trust          
    Series 2007-Class B           Series 2016-AA Class A2          
1.488%  due 04/27/43  (Ê) 1,215 1,018 2.300% due 09/15/19 (Þ) 2,493 2,493
Series 2008-2 Class B           Toyota Auto Receivables Owner Trust          
        Series 2014-B Class A3          
1.838% due 01/25/83 (Ê)     1,270 1,101        
Series 2008-3 Class A3           0.760% due 03/15/18     1,687 1,686
        Series 2015-B Class A2B          
1.638% due 10/25/21 (Ê)     4,512 4,424        
            0.644% due 11/15/17 (Ê)     1,686 1,687
Series 2008-3 Class B       United States Small Business          
1.838% due 04/26/83 (Ê)     1,395 1,182 Administration          
Series 2008-4 Class B           Series 2016-20G Class 1          
2.488% due 04/25/29 (Ê) 1,290 1,160 2.040% due 07/01/36 1,170 1,188
Series 2008-5 Class B                     467,462
2.488% due 07/25/29 (Ê) 1,290 1,164 Corporate Bonds and Notes - 17.5%      
Series 2008-6 Class B           AbbVie, Inc.          
2.488% due 07/26/83 (Ê) 1,290 1,214 1.750% due 11/06/17 300 302
Series 2008-7 Class B           2.500% due 05/14/20 3,055 3,135
2.488% due 07/26/83 (Ê) 1,295 1,193 3.600% due 05/14/25 1,900 2,015
Series 2008-8 Class B                  
        3.200% due 05/14/26     900 923
2.888% due 10/25/29 (Ê)     1,300 1,249 AES Corp.          
Series 2008-9 Class A                  
        5.500% due 03/15/24     370 382
2.215% due 04/25/23 (Ê)     4,654 4,645 Aetna, Inc.          
Series 2008-9 Class B                  
        1.900% due 06/07/19     2,285 2,315
2.888% due 10/25/83 (Ê)     1,300 1,240        
Series 2013-4 Class A           2.400% due 06/15/21     300 306
1.038% due 06/25/27 (Ê) 2,323 2,245 2.800% due 06/15/23 4,670 4,806
SoFi Professional Loan Program LLC           3.200% due 06/15/26 600 615
Series 2014-B Class A2           Albemarle Corp.          
2.550% due 08/27/29 (Þ) 3,659 3,688 4.150% due 12/01/24 1,633 1,773
Series 2016-B Class A2B           Series 30YR          
2.740% due 10/25/32 (Þ) 7,850 7,992 5.450% due 12/01/44 3,885 4,372
Soundview Home Loan Trust           Alexandria Real Estate Equities, Inc.          
Series 2005-4 Class M2           2.750% due 01/15/20 650 656
0.691% due 03/25/36 (Ê) 3,870 3,398 Ally Financial, Inc.          
South Carolina Student Loan Corp.           3.600% due 05/21/18 5,530 5,626
Series 2015-A Class A                  
1.939% due 01/25/36 (Ê) 2,806 2,578 3.250% due 11/05/18     3,070 3,105
Structured Asset Investment Loan Trust           8.000% due 11/01/31 650 791
Series 2006-2 Class A3           Altria Group, Inc.          
0.626% due 04/25/36 (Ê) 2,496 2,243 2.850% due 08/09/22 1,500 1,581
Structured Asset Securities Corp.           9.950% due 11/10/38 370 675
Mortgage Loan Trust                  
Series 2005-4XS Class 2A1A           10.200% due 02/06/39     2,685 5,006
2.189% due 03/25/35 (Ê) 1,067 1,008 5.375% due 01/31/44 500 657
Series 2006-BC2 Class A3           Amazon.com, Inc.          
0.596% due 09/25/36 (Ê) 3,763 3,269 4.950% due 12/05/44 1,980 2,482
Series 2006-BC5 Class A4           American Airlines Pass-Through Trust          
0.609% due 12/25/36 (Ê) 2,637 2,391 Series 2011-1 Class A      
Series 2006-BC6 Class A4           5.250% due 01/31/21     1,506 1,630
0.616% due 01/25/37 (Ê) 4,904 4,185 Series 2013-2 Class A      
Series 2006-WF3 Class A4           4.950% due 01/15/23     3,801 4,163
0.756% due 09/25/36 (Ê) 5,740 5,411 Series 2014-1 Class B      
Series 2007-BC1 Class A4           4.375% due 10/01/22     2,066 2,102
0.576% due 02/25/37 (Ê) 9,565 8,639 American Axle & Manufacturing, Inc.      
SunTrust Student Loan Trust           6.625% due 10/15/22     360 381

 

See accompanying notes which are an integral part of this quarterly report.

152 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
American Builders & Contractors Supply         AutoNation, Inc.        
Co., Inc.           4.500% due 10/01/25 3,880 4,150
5.750% due 12/15/23 (Þ) 360 379 Axiall Corp.        
American Express Credit Corp.           4.875% due 05/15/23 2,055 2,113
Series F                    
2.600% due 09/14/20 5,005 5,175 BAC Series Capital G Trust XIV        
American Honda Finance Corp.           4.000% due 09/29/49 (Ê)(ƒ) 500 398
0.966% due 12/11/17 (Ê) 570 571 Ball Corp.        
American International Group, Inc.           5.250% due 07/01/25 720 778
6.400% due 12/15/20 5,880 6,925 Bank of America Corp.        
3.750% due 07/10/25 1,000 1,035 5.750% due 12/01/17 3,495 3,689
Amgen, Inc.           5.000% due 05/13/21 1,600 1,800
3.625% due 05/22/24 100 109        
        4.250% due 10/22/26   1,150 1,212
4.400% due 05/01/45     1,500 1,635        
        4.875% due 04/01/44   2,000 2,342
4.663% due 06/15/51 (Þ)     100 107 Series GMTN        
Anadarko Petroleum Corp.           2.625% due 04/19/21 2,935 2,991
4.850% due 03/15/21 650 688        
        3.300% due 01/11/23   1,100 1,146
5.550% due 03/15/26     300 328        
        3.500% due 04/19/26   7,860 8,206
6.450% due 09/15/36     10,772 12,034 Series L        
4.500% due 07/15/44 2,680 2,354 2.600% due 01/15/19 310 317
Anheuser-Busch InBev Finance, Inc.           Series X        
1.157% due 02/01/19 (Ê) 2,650 2,646 6.250% due 09/29/49 (ƒ) 460 482
2.650% due 02/01/21 1,100 1,139 Bank of America NA        
        Series BKNT        
3.300% due 02/01/23     5,250 5,536        
        1.750% due 06/05/18   6,965 7,015
3.650% due 02/01/26     7,520 8,074        
        2.050% due 12/07/18   1,815 1,843
4.700% due 02/01/36     6,065 7,030          
4.900% due 02/01/46 2,060 2,509 Bank Series of Montreal YCD        
Anthem, Inc.           1.211% due 12/08/17 (Ê)(~) 7,625 7,625
3.700% due 08/15/21 250 268 1.207% due 12/11/17 (Ê)(~) 7,590 7,581
3.125% due 05/15/22 3,665 3,823 1.206% due 12/20/17 (Ê)(~) 1,500 1,498
Apache Corp.           Barrick NA Finance LLC        
3.250% due 04/15/22 100 102 5.700% due 05/30/41 200 219
5.100% due 09/01/40 600 610 5.750% due 05/01/43 2,000 2,322
Apollo Management Holdings, LP           Baxalta, Inc.        
4.000% due 05/30/24 (Þ) 1,810 1,864 Series WI        
4.400% due 05/27/26 (Þ) 2,560 2,680 3.600% due 06/23/22 1,210 1,262
Appalachian Power Co.           Becton Dickinson and Co.        
4.450% due 06/01/45 2,300 2,548 3.734% due 12/15/24 300 326
Apple, Inc.           4.685% due 12/15/44 100 117
1.009% due 05/03/18 (Ê) 10,416 10,437 Bellsouth Capital Funding Corp.        
1.474% due 02/22/19 (Ê) 3,380 3,428 7.875% due 02/15/30 3,130 4,047
0.934% due 05/06/19 (Ê) 2,725 2,733 Berkshire Hathaway Energy Co.        
2.450% due 08/04/26 860 862 6.500% due 09/15/37 350 489
 Assurant, Inc.           Berkshire Hathaway, Inc.        
 2.500%  due 03/15/18 3,723 3,771 2.200% due 03/15/21 1,795 1,859
AT&T, Inc.           4.500% due 02/11/43 1,100 1,306
1.577% due 11/27/18 (Ê) 1,700 1,711 Biogen, Inc.        
3.000% due 02/15/22 250 259 5.200% due 09/15/45 1,132 1,357
        Blue Cube Spinco, Inc.        
3.400% due 05/15/25     2,570 2,660        
        10.000% due 10/15/25 (Þ)   6,255 7,146
4.800% due 06/15/44     1,000 1,060 BMW US Capital LLC        
4.350% due 06/15/45 650 651 1.500% due 04/11/19 (Þ) 5,640 5,678
4.750% due 05/15/46 2,405 2,547 Boardwalk Pipelines, LP        

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 153

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
4.950% due 12/15/24 1,500 1,484 6.625% due 04/01/18 (Þ) 3,155 3,352
Boeing Co. (The)           5.000% due 08/01/23 740 779
4.875% due 02/15/20 700 789 Citigroup Capital III          
Boston Properties, LP           7.625% due 12/01/36 2,825 3,654
5.625% due 11/15/20 1,020 1,170 Citigroup, Inc.          
3.650% due 02/01/26 3,285 3,550 1.361% due 11/24/17 (Ê) 7,300 7,311
Burlington Northern Santa Fe LLC           1.800% due 02/05/18 8,005 8,040
4.150% due 04/01/45 305 346 2.150% due 07/30/18 3,375 3,414
California Resources Corp.                  
        4.450% due 09/29/27     6,050 6,344
8.000% due 12/15/22 (Å)     110 71        
Series WI           1.212% due 08/25/36 (Ê)     2,250 1,519
6.000% due 11/15/24 570 245 5.300% due 05/06/44 800 904
Calpine Corp.           4.650% due 07/30/45 2,910 3,285
5.875% due 01/15/24 (Þ) 490 516 Series P          
Capital One Financial Corp.           5.950% due 12/31/49 (ƒ) 1,900 1,956
3.750% due 07/28/26 2,815 2,834 Series T          
Capital One NA           6.250% due 12/29/49 (ƒ) 3,400 3,664
2.350% due 08/17/18 3,365 3,416 Clear Channel Worldwide Holdings, Inc.        
Series BKNT           Series B          
1.650% due 02/05/18 4,140 4,150 6.500% due 11/15/22 3,650 3,778
Cargill, Inc.           CME Group, Inc.          
6.000% due 11/27/17 (Þ) 3,250 3,455 5.300% due 09/15/43 200 268
CCO Holdings LLC / CCO Holdings           CNOOC Finance USA LLC          
Capital Corp.           3.500% due 05/05/25 1,300 1,338
    5.375%  due 05/01/25 (Þ)            Coca-Cola  European Partners US LLC          
Celgene Corp) 760 790    3.500% due 09/15/20 349 372
3.550% due 08/15/22 200 213 Comcast Cable Communications          
3.875% due 08/15/25 2,200 2,387 Holdings, Inc.      
        9.455% due 11/15/22     400 569
5.000% due 08/15/45     450 524            
Charter Communications Operating LLC           Comcast Corp.      
/ Charter Communications Operating           1.625% due 01/15/22     2,870 2,870
Capital           3.375% due 08/15/25 200 218
4.464% due 07/23/22 (Þ) 2,585 2,806 6.400% due 03/01/40 700 1,002
4.908% due 07/23/25 (Þ) 2,925 3,230 Commonwealth Edison Co.          
6.384% due 10/23/35 (Þ) 2,380 2,801 5.800% due 03/15/18 1,745 1,874
6.484% due 10/23/45 (Þ) 510 612 Compass Bank          
 Chase Capital  III           Series BKNT          
   Series C           6.400% due 10/01/17 6,880 7,221
1.223% due 03/01/27 (Ê) 1,740 1,488 Concho Resources, Inc.      
Chesapeake Energy Corp.           5.500% due 04/01/23     570 563
6.125% due 02/15/21 530 366 ConocoPhillips Co.      
Chevron Corp.           1.050% due 12/15/17     357 355
0.796% due 11/15/17 (Ê) 1,595 1,594 Constellation Brands, Inc.      
        4.750% due 11/15/24     370 402
1.126% due 05/16/18 (Ê)     7,325 7,332            
1.790% due 11/16/18 750 761 Credit Suisse      
        1.750% due 01/29/18     4,765 4,772
2.100% due 05/16/21     3,060 3,128 Crestwood Midstream Partners, LP /          
2.954% due 05/16/26 2,760 2,855 Crestwood Midstream Finance Corp.      
CHS/Community Health Systems, Inc.            6.125% due Tower 03/01/22     400 375
8.000% due 11/15/19     7,475 7,185  Crown 6 Castle  Towers LLC      
Chubb INA Holdings, Inc.           3.222% due 05/15/22 (Þ)     3,610 3,749
2.300% due 11/03/20 2,520 2,602 CVS Health Corp.      
        2.750% due 12/01/22     600 626
2.875% due 11/03/22     2,020 2,129        
        3.875% due 07/20/25     1,240 1,377
3.350% due 05/03/26     200 216        
CIT Group, Inc.           2.875% due 06/01/26     2,205 2,273

 

See accompanying notes which are an integral part of this quarterly report.

154 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
5.125% due 07/20/45 5,917 7,526 4.050% due 03/15/25 8,215 8,033
Daimler Finance NA LLC           6.050% due 06/01/41 2,678 2,697
2.000% due 08/03/18 (Þ) 6,020 6,093 5.150% due 03/15/45 1,385 1,289
DaVita HealthCare Partners, Inc.                  
        3.774% due 11/01/66 (Ê)     6,750 4,590
5.000% due 05/01/25     2,170 2,194 Enterprise Products Operating LLC          
DCP Midstream Operating, LP                  
        4.900% due 05/15/46     1,220 1,294
2.500% due 12/01/17     685 678 Series B          
Delta Air Lines Pass-Through Trust                  
Series 2002-1 Class G-1           7.034% due 01/15/68     2,890 3,049
 
6.718% due 01/02/23 2,659 3,024 EOG Resources, Inc.      
Series 2007-1 Class A           4.150% due 01/15/26     200 219
        EP Energy LLC / Everest Acquisition          
6.821% due 08/10/22     2,794 3,292 Finance, Inc.          
Devon Energy Corp.           Series WI          
5.850% due 12/15/25 4,058 4,458 6.375% due 06/15/23 640 320
5.000% due 06/15/45 550 507 Exelon Corp.          
Diageo Investment Corp.           2.850% due 06/15/20 2,590 2,692
2.875% due 05/11/22 600 632 Series WI          
Diamond 1 Finance Corp. / Diamond 2           3.950% due 06/15/25 1,250 1,360
Finance Corp           Express  Scripts Holding Co.          
3.480% due 06/01/19 (Þ) 1,000 1,028    3.000% due 07/15/23 4,435 4,510
4.420% due 06/15/21 (Þ) 3,185 3,328 4.800% due 07/15/46 3,230 3,443
5.450% due 06/15/23 (Þ) 6,725 7,123 Exxon Mobil Corp.          
Discover Bank           1.274% due 02/28/18 (Ê) 2,185 2,200
Series BKNT                  
        0.723% due 03/01/18 (Ê)     1,505 1,503
3.100% due 06/04/20     2,000 2,062        
DISH DBS Corp.           0.803% due 03/15/19 (Ê)     4,555 4,526
6.750% due 06/01/21 235 250 3.043% due 03/01/26 500 531
5.875% due 07/15/22 150 150 4.114% due 03/01/46 250 281
Series WI           Farmers Exchange Capital          
5.875% due 11/15/24 1,220 1,177 7.200% due 07/15/48 (Þ) 1,100 1,395
Dollar Tree, Inc.           Farmers Exchange Capital II          
Series WI           6.151% due 11/01/53 (Þ) 2,750 2,989
5.750% due 03/01/23 490 529 Farmers Exchange Capital III          
Dominion Resources, Inc.           5.454% due 10/15/54 (Þ) 3,275 3,328
7.000% due 06/15/38 150 206 Fifth Third Bank          
Duke Energy Carolinas LLC           Series BKNT          
5.300% due 02/15/40 200 262 2.875% due 10/01/21 2,900 3,039
 
4.250% due 12/15/41 100 115 First Data Corp.      
Duke Energy Progress LLC           5.375% due 08/15/23 (Þ)     1,810 1,858
4.100% due 03/15/43 1,545 1,727 First Union Capital II          
            Series A          
Eaton Corp.                  
        7.950% due 11/15/29     1,575 2,098
2.750% due 11/02/22     1,000 1,033            
4.150% due 11/02/42 250 279 FirstEnergy Series A Corp.          
eBay, Inc.           2.750% due 03/15/18 200 203
1.237% due 08/01/19 (Ê) 3,950 3,907 Series B          
Ecolab, Inc.           4.250% due 03/15/23 700 744
4.350% due 12/08/21 100 113 Series C          
El Paso Natural Gas Co. LLC           7.375% due 11/15/31 1,900 2,452
7.500% due 11/15/26 1,425 1,550 FirstEnergy Transmission LLC          
Emera US Finance, LP           5.450% due 07/15/44 (Þ) 907 1,033
3.550% due 06/15/26 (Þ) 2,575 2,703 Florida East Coast Holdings Corp.          
4.750% due 06/15/46 (Þ) 1,755 1,933 6.750% due 05/01/19 (Þ) 380 389
Enbridge Energy Partners, LP           Ford Motor Co.          
5.875% due 10/15/25 1,000 1,100 4.750% due 01/15/43 1,000 1,102
Energy Transfer Partners, LP           Ford Motor Credit Co. LLC          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 155

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
1.724% due 12/06/17 1,000 1,004 Goldman Sachs Capital I          
2.551% due 10/05/18 6,880 7,003 6.345% due 02/15/34 5,600 6,778
        Goldman Sachs Capital II          
3.157% due 08/04/20     1,750 1,808 Series 2011-GC5          
5.875% due 08/02/21 1,400 1,615 4.000% due 06/01/43 (Ê)(ƒ) 200 162
Series FXD           Goldman Sachs Group, Inc. (The)          
2.145% due 01/09/18 6,395 6,447 2.625% due 04/25/21 2,655 2,703
Ford Motor Credit Co., LLC                  
        5.250% due 07/27/21     1,900 2,159
3.664% due 09/08/24     200 209        
Freeport-McMoran Oil & Gas LLC / FCX         3.850% due 07/08/24     1,445 1,551
Oil & Gas, Inc.           4.250% due 10/21/25 1,200 1,268
6.875% due 02/15/23 100 97 6.750% due 10/01/37 3,767 4,829
Freeport-McMoRan, Inc.           6.250% due 02/01/41 1,100 1,459
3.550% due 03/01/22 600 513        
Fresenius Medical Care US Finance II,           4.750% due 10/21/45     1,000 1,139
Inc.           Series D          
4.750% due 10/15/24 (Þ) 740 788 6.000% due 06/15/20 1,875 2,146
General Electric Co.           Series O          
5.250% due 12/06/17 3,805 4,021 5.300% due 12/29/49 (ƒ) 2,400 2,439
        Goodyear Tire & Rubber Co. (The)          
0.902% due 08/07/18 (Ê)     5,000 4,993        
        5.125% due 11/15/23     760 804
5.300% due 02/11/21     900 1,043 Great Plains Energy, Inc.          
1.013% due 05/05/26 (Ê) 3,045 2,879 5.292% due 06/15/22 3,785 4,248
1.106% due 08/15/36 (Ê) 1,000 849 Halliburton Co.          
5.875% due 01/14/38 1,835 2,525 3.800% due 11/15/25 500 518
4.500% due 03/11/44 2,400 2,860 4.850% due 11/15/35 200 218
Series GMTN           Harris Corp.          
3.100% due 01/09/23 679 726 1.999% due 04/27/18 2,426 2,442
6.150% due 08/07/37 583 822 5.054% due 04/27/45 200 237
 
6.875% due 01/10/39 700 1,074 HCA, Inc.      
Series NOTZ           5.375% due 02/01/25     830 864
 
1.480% due 04/15/20 (Ê) 1,140 1,151 HCP, Inc.      
General Mills, Inc.           4.250% due 11/15/23     2,600 2,736
 
5.650% due 02/15/19 2,300 2,557 Series 7YR      
General Motors Co.           4.000% due 12/01/22     1,100 1,159
 
3.500% due 10/02/18 380 392 Hewlett Packard Enterprise Co.      
        2.450% due 10/05/17 (Þ)     5,330 5,395
4.875% due 10/02/23     8,795 9,609        
        6.200% due 10/15/35 (Þ)     4,478 4,582
6.250% due 10/02/43     150 181            
            Hexion, Inc.          
General Motors Financial Co., Inc.       6.625% due 04/15/20 450 380
3.200% due 07/06/21     200 203 Hilton Worldwide Finance LLC / Hilton          
4.375% due 09/25/21 150 161 Worldwide Finance Corp.          
3.450% due 04/10/22 1,500 1,530 Series WI          
4.250% due 05/15/23 100 105 5.625% due 10/15/21 370 383
        HSBC Finance Corp.          
5.250% due 03/01/26     3,320 3,707        
            6.676% due 01/15/21     700 795
Georgia-Pacific LLC       HSBC USA, Inc.          
8.875% due 05/15/31     3,610 5,830 Series BKNT          
Gilead Sciences, Inc.           5.875% due 11/01/34 2,665 3,299
2.550% due 09/01/20 3,115 3,240 Humana, Inc.          
3.650% due 03/01/26 1,000 1,091 3.150% due 12/01/22 100 104
4.750% due 03/01/46 1,125 1,315 4.625% due 12/01/42 150 161
Glencore Funding LLC           Hyundai Capital America          
2.875% due 04/16/20 (Þ) 1,200 1,167 2.000% due 07/01/19 (Þ) 2,085 2,099
 
GLP Capital, LP / GLP Financing II, Inc.       Indiantown Cogeneration, LP          
5.375% due 11/01/23     550 590 Series A-10          

 

See accompanying notes which are an integral part of this quarterly report.

156 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
9.770% due 12/15/20 (Å) 853 935 Kraft Heinz Foods Co.          
Intel Corp.           4.875% due 02/15/25 (Þ) 7,609 8,399
3.700% due 07/29/25 150 168 5.000% due 07/15/35 (Þ) 250 297
4.900% due 07/29/45 100 120 5.200% due 07/15/45 (Þ) 150 181
 
International Business Machines Corp       Kroger Co. (The)      
0.824% due 02/06/18 (Ê)     4,785 4,783 5.150% due 08/01/43     150 188
1.125% due 02/06/18 235 236 L Brands, Inc.          
0.998% due 02/12/19 (Ê) 4,270 4,281 5.625% due 10/15/23 360 399
International  Lease  Finance Corp.           Land O' Lakes, Inc.          
    7.125% due  09/01/18  (Þ) 1,500 1,661 6.000% due 11/15/22 (Þ) 2,135 2,263
        Lockheed Martin Corp.          
5.875% due 08/15/22     700 798        
 IPALCO  Enterprises, Inc.           3.350% due 09/15/21     2,510 2,703
    5.000%  due 05/01/18 3,500 3,675 4.500% due 05/15/36 100 117
Jackson National Life Global Funding           Series 10YR          
    3.050%  due 04/29/26 (Þ) 500 513 3.550% due 01/15/26 600 661
   Series 144a           Marathon Oil Corp.          
2.600% due 12/09/20 (Þ) 1,670 1,728 3.850% due 06/01/25 5,435 4,932
Janus Capital Group,Inc.           McDonald's Corp.          
     4.875% due  08/01/25 3,410 3,708 2.100% due 12/07/18 2,700 2,756
Jersey Central Power & Light Co.           3.700% due 01/30/26 400 438
4.700% due 04/01/24 (Þ) 525 578 Medtronic, Inc.          
JPMorgan Chase & Co.           Series WI          
     1.615%  due 01/25/18  (Ê) 1,550 1,561 3.500% due 03/15/25 1,000 1,095
        Merck & Co., Inc.          
2.750% due 06/23/20     2,755 2,850        
        0.986% due 05/18/18 (Ê)   21,060 21,143
2.550% due 03/01/21     3,340 3,421        
        2.750% due 02/10/25     300 316
4.350% due 08/15/21     900 993 MetLife, Inc.          
4.125% due 12/15/26 1,600 1,720 6.400% due 12/15/36 700 777
4.950% due 06/01/45 700 803 10.750% due 08/01/39 3,805 6,088
Series H           Metropolitan Life Global Funding I          
1.700% due 03/01/18 990 997 2.500% due 12/03/20 (Þ) 1,000 1,036
JPMorgan Chase Bank NA           MGM Resorts International          
Series BKNT                  
        6.000% due 03/15/23     550 595
6.000% due 10/01/17     7,800 8,208 Microsoft Corp.          
JPMorgan Chase Capital XIII                  
Series M           3.750% due 02/12/45     2,000 2,070
        MidAmerican Energy Co.          
1.581% due 09/30/34 (Ê)     3,530 2,877        
JPMorgan Chase Capital XXI           3.500% due 10/15/24     1,500 1,654
      Series U           Mondelez International, Inc.          
1.709%  due 02/02/37 (Ê) 10 8 4.000% due 02/01/24 600 663
JPMorgan  Chase Capital XXIII           Monongahela Power Co.          
    1.362%  due 05/15/47 (Ê) 8,880 6,815 4.100% due 04/15/24 (Þ) 1,815 1,998
Kindred Healthcare, Inc.           5.400% due 12/15/43 (Þ) 1,390 1,802
Series WI           Morgan Stanley          
8.750% due 01/15/23 380 383 5.950% due 12/28/17 1,000 1,062
KKR Group Finance Co. II LLC           Series GMTN          
5.500% due 02/01/43 (Þ) 50 53 7.300% due 05/13/19 1,000 1,147
KKR Group Finance Co. III LLC           2.500% due 04/21/21 2,200 2,226
5.125% due 06/01/44 (Þ) 4,605 4,739 3.875% due 01/27/26 5,370 5,732
KLA-Tencor Corp.           MPLX,  LP          
4.650% due 11/01/24 200 221     4.875%  due 06/01/25 (Þ) 700 699
Kohl's Corp.           Mutual  of Omaha  Insurance Co.          
5.550% due 07/17/45 3,115 2,979    4.297%  due 07/15/54  (Þ) 3,140 3,152
Kraft Foods Group, Inc.           Mylan, Inc.          
3.500% due 06/06/22 700 754     2.550%  due 03/28/19 2,670 2,721

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 157

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Navient Corp.           4.500% due 03/20/42 250 290
8.000% due 03/25/20 730 779 Pricoa Global Funding I          
NBCUniversal Media LLC           2.550% due 11/24/20 (Þ) 2,210 2,289
4.375% due 04/01/21 1,000 1,126 Procter & Gamble Co. (The)          
NCL Corp., Ltd.           1.027% due 11/01/19 (Ê) 5,000 4,993
4.625% due 11/15/20 (Þ) 380 384 Progress Energy, Inc.          
Neiman Marcus Group, Ltd. LLC           4.400% due 01/15/21 200 219
8.750% due 10/15/21 (Þ) 530 419 Protective Life Global Funding          
Neptune Finco Corp.           2.700% due 11/25/20 (Þ) 1,100 1,139
6.625% due 10/15/25 (Þ) 450 485 Public Service Co. of New Mexico          
Netflix, Inc.           7.950% due 05/15/18 3,320 3,676
5.875% due 02/15/25 380 407 Quebecor World Capital Corp.          
New York Life Global Funding           4.875% due 01/02/49 (Ø)(Þ) 625 —
1.450% due 12/15/17 (Þ) 4,430 4,460 6.125% due 11/15/49 (Ø) 1,955 —
Newell Brands, Inc.           Quicken Loans, Inc.          
3.150% due 04/01/21 150 157    5.750% due 05/01/25  (Þ) 400 396
3.850% due 04/01/23 6,810 7,278 QVC, Inc.          
4.200% due 04/01/26 250 273 4.375% due 03/15/23 5,765 5,910
NextEra Energy Capital Holdings, Inc.           Series WI          
Series F           5.450% due 08/15/34 2,040 1,940
2.056% due 09/01/17 2,000 2,013 Rayonier AM Products, Inc.          
NiSource Finance Corp.           5.500% due 06/01/24 (Þ) 3,360 2,913
6.400% due 03/15/18 868 937 Regency Energy Partners, LP / Regency          
Noble Energy, Inc.           Energy Finance Corp.          
8.250% due 03/01/19 600 687 5.875% due 03/01/22 400 436
        Reliance Standard Life Global Funding          
3.900% due 11/15/24     1,000 1,024            
 
5.250% due 11/15/43 100 101 2.500% II due 01/15/20 (Þ) 3,070 3,121
Novartis Capital Corp.           Reynolds American, Inc.          
4.000% due 11/20/45 1,000 1,153 6.875% due 05/01/20 3,290 3,897
NVR, Inc.                  
        3.250% due 06/12/20     250 264
3.950% due 09/15/22     3,200 3,392        
Occidental Petroleum Corp.           5.850% due 08/15/45     1,300 1,710
        Reynolds Group Issuer, Inc. / Reynolds          
3.125% due 02/15/22     200 210 Group Issuer LLC / Reynolds Group          
3.400% due 04/15/26 350 368 Issuer Lu          
4.625% due 06/15/45 200 226 6.875% due 02/15/21 370 385
Oncor Electric Delivery Co. LLC           Sabine Pass Liquefaction LLC          
 
6.800% due 09/01/18 4,750 5,252 Series WI      
Oracle Corp.           5.750% due 05/15/24     380 389
 
1.900% due 09/15/21 3,125 3,135 SABMiller Holdings, Inc.      
        3.750% due 01/15/22 (Þ)     4,116 4,470
2.400% due 09/15/23     1,725 1,742            
        Schlumberger Holdings Corp.          
2.650% due 07/15/26     4,685 4,708        
            4.000% due 12/21/25 (Þ)     3,520 3,832
PACCAR Financial Corp.                      
 
1.280% due 12/06/18 (Ê) 1,000 1,005 SL Green Realty Corp      
            7.750% due 03/15/20     2,300 2,677
Pacific Gas & Electric Co.                      
 
6.050% due 03/01/34 700 935 SL Green Realty Corp.      
        5.000% due 08/15/18     505 531
5.800% due 03/01/37     400 528 Southern Copper Corp.          
Panhandle Eastern Pipe Line Co., LP           6.750% due 04/16/40 60 65
8.125% due 06/01/19 3,542 3,952        
            5.250% due 11/08/42     980 907
Pfizer, Inc.                      
 
0.953% due 06/15/18 (Ê) 8,993 9,014 Southwestern Electric Power Co.      
            6.200% due 03/15/40     470 608
Pharmacia LLC                      
 
6.500% due 12/01/18 2,065 2,314 Sprint Capital Corp.      
            8.750% due 03/15/32     6,465 6,029
Philip Morris International, Inc.                      
2.500% due 08/22/22 600 621 Sprint Communications, Inc.          

 

See accompanying notes which are an integral part of this quarterly report.

158 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
9.000% due 11/15/18 (Þ) 1,415 1,533 8.312% due 07/01/46 (Þ) 4,394 6,039
State Street Corp.           Valeant Pharmaceuticals International,          
 
4.956% due 03/15/18 1,000 1,049 Inc.      
Teachers Insurance & Annuity           5.500% due 03/01/23 (Þ)     619 511
Association of America           6.125% due 04/15/25 (Þ) 1,740 1,444
4.900% due 09/15/44 (Þ) 300 344 Ventas Realty LP/CAP CRP          
4.900% due 09/15/44 (Å) 100 114 2.000% due 02/15/18 1,400 1,410
4.375% due 09/15/54 (Þ) 200 202 Verizon Communications, Inc.          
Tenet Healthcare Corp.           2.406% due 09/14/18 (Ê) 600 617
4.153% due 06/15/20 (Ê) 1,165 1,156 3.650% due 09/14/18 1,970 2,070
8.125% due 04/01/22 6,010 6,206 1.375% due 08/15/19 5,665 5,667
Time Warner Cable, Inc.           5.150% due 09/15/23 2,895 3,394
4.125% due 02/15/21 1,000 1,069 2.625% due 08/15/26 3,635 3,629
5.875% due 11/15/40 200 224 6.400% due 09/15/33 550 713
Time Warner, Inc.                  
        6.550% due 09/15/43     550 749
4.750% due 03/29/21     300 338    Series WI          
7.700% due 05/01/32 1,000 1,435 4.862% due 08/21/46 1,900 2,133
Toyota Motor Credit Corp.                  
Series MTN           4.672% due 03/15/55     3,085 3,204
 
1.026% due 03/12/20 (Ê) 13,210 13,171 Viacom, Inc.      
Transcontinental Gas Pipe Line Co. LLC       Visa Inc     150 154
7.850% due 02/01/26 (Þ)     800 998    3.875%  due 04/01/24      
Tyson Foods, Inc.           3.150% due 12/14/25     1,000 1,074
5.150% due 08/15/44 100 121 4.300% due 12/14/45 650 766
UBS AG           Wachovia Capital Trust III          
Series GMTN           5.570% due 03/29/49 (Ê)(ƒ) 2,925 2,925
1.800% due 03/26/18 7,035 7,081 Walgreens Boots Alliance, Inc.          
Under Armour, Inc.           3.450% due 06/01/26 1,790 1,875
3.250% due 06/15/26 525 534 4.800% due 11/18/44 965 1,092
Union Pacific Railroad Co. Pass-Through         Wal-Mart Stores, Inc.          
Trust                  
Series 06-1           6.200% due 04/15/38     100 145
        Waste Management, Inc.          
5.866% due 07/02/30     875 1,026        
United Rentals NA, Inc.           3.500% due 05/15/24     300 327
        WEA Finance LLC / Westfield UK &          
5.750% due 11/15/24     380 394 Europe Finance PLC          
United Technologies Corp.           3.250% due 10/05/20 (Þ) 1,025 1,068
4.500% due 06/01/42 200 237 Wells Fargo & Co.          
UnitedHealth Group, Inc.           2.500% due 03/04/21 1,895 1,944
1.900% due 07/16/18 3,420 3,470        
        4.600% due 04/01/21     1,500 1,676
3.875% due 10/15/20     100 109        
        1.740% due 07/26/21 (Ê)     8,880 8,928
5.700% due 10/15/40     400 535        
Univision Communications, Inc.           2.100% due 07/26/21     2,000 2,009
    5.125%  due 05/15/23 (Þ) 550 565 3.000% due 04/22/26 2,870 2,948
5.125% due 02/15/25 (Þ) 380 391 4.650% due 11/04/44 1,200 1,308
US Airways Pass-Through  Trust           Series GMTN          
  Series 2012-1 Class A           2.600% due 07/22/20 5,385 5,573
5.900% due 10/01/24 2,513 2,902 4.300% due 07/22/27 2,000 2,190
Series A Class A           4.900% due 11/17/45 1,700 1,927
7.125% due 10/22/23 2,476 2,934 Welltower, Inc.          
US Bank NA           6.125% due 04/15/20 1,720 1,961
Series BKNT                  
        5.250% due 01/15/22     2,500 2,816
0.856% due 09/11/17 (Ê)     4,800 4,797 West  Corp.          
1.375% due 09/11/17 2,400 2,410  5.375% due 07/15/22 (Þ) 420 392
1.021% due 01/26/18 (Ê) 250 249 Whiting Petroleum Corp.          
USF&G Capital III                      

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 159

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
5.750% due 03/15/21 420 352 5.250% due 04/01/42 1,540 1,668
Williams Partners, LP           Bharti Airtel, Ltd.          
3.600% due 03/15/22 2,000 1,947 4.375% due 06/10/25 (Þ) 740 784
4.000% due 09/15/25 2,195 2,093 BHP Billiton Finance USA, Ltd.          
5.100% due 09/15/45 3,235 2,910 3.250% due 11/21/21 800 858
ZF NA Capital, Inc.           2.875% due 02/24/22 100 105
4.750% due 04/29/25 (Þ) 770 805 5.000% due 09/30/43 300 359
ZFS Finance USA Trust V           6.750% due 10/19/75 (Þ) 3,740 4,161
6.500% due 05/09/37 (Þ) 5,977 6,022 BNP Paribas SA          
          1,026,426 2.375% due 09/14/17 300 304
International Debt - 5.1%           BP Capital Markets PLC          
1011778 BC ULC / New Red Finance,                  
     Inc.           3.245% due 05/06/22     100 106
6.000%  due 04/01/22 (Þ) 740 776 3.119% due 05/04/26 800 816
ABN AMRO Bank NV           Braskem Finance, Ltd.          
4.750% due 07/28/25 (Þ) 400 419 6.450% due 02/03/24 2,375 2,476
          Brazilian  Government International Bond          
Actavis Funding SCS           5.625%  due 01/07/41 1,050 1,036
3.450% due 03/15/22     250 263            
3.800% due 03/15/25 2,925 3,108 5.000% due 01/27/45 460 421
        British Telecommunications PLC          
4.750% due 03/15/45     300 333        
AerCap Ireland Capital, Ltd. / AerCap           9.375% due 12/15/30     200 318
Global Aviation Trust           Canadian Oil Sands, Ltd.          
4.625% due 07/01/22 3,670 3,942 7.750% due 05/15/19 (Þ) 2,590 2,905
Series WI           4.500% due 04/01/22 (Þ) 3,740 3,849
3.750% due 05/15/19 400 414 CDP Financial, Inc.          
Altice Financing SA           5.600% due 11/25/39 (Þ) 2,480 3,387
6.625% due 02/15/23 (Þ) 260 261 Celulosa Arauco y Constitucion SA          
Altice Luxembourg SA           Series WI          
7.750% due 05/15/22 (Þ) 2,825 2,866 4.750% due 01/11/22 300 321
America Movil SAB de CV           Colombia Government International          
        Bond          
5.625% due 11/15/17     250 263        
        5.625% due 02/26/44     610 669
5.000% due 03/30/20     290 323 Commonwealth Bank of Australia          
ArcelorMittal                  
        5.000% due 10/15/19 (Þ)     200 221
7.250% due 02/25/22     720 788 Cooperatieve Rabobank UA          
6.125% due 06/01/25 2,525 2,676 4.625% due 12/01/23 900 966
Ardagh Packaging Finance PLC /                  
Ardagh Holdings USA, Inc.           4.375% due 08/04/25     600 633
3.653% due 12/15/19 (Ê)(Þ) 730 736 5.750% due 12/01/43 400 495
Argentine Republic Government           5.250% due 08/04/45 2,450 2,869
International Bond                  
        11.000% due 06/29/49 (ƒ)(Þ)     2,702 3,303
6.875% due 04/22/21 (Þ)     490 527 Credit Agricole SA          
7.500% due 04/22/26 (Þ) 360 391 8.375% due 10/29/49 (ƒ)(Þ) 600 677
7.625% due 04/22/46 (Þ) 240 256 Credit Suisse Group Funding Guernsey,          
AstraZeneca PLC           Ltd.          
2.375% due 11/16/20 2,110 2,167 3.800% due 06/09/23 (Þ) 4,495 4,561
3.375% due 11/16/25 1,000 1,073 4.550% due 04/17/26 (Þ) 3,400 3,588
Bank of Montreal           Series WI          
Series 3FRN           4.875% due 05/15/45 1,000 1,069
 
1.025% due 04/10/18 (Ê) 800 797 Dai-ichi Life Insurance Co., Ltd. (The)      
Bank of Nova Scotia (The)           4.000% due 12/31/49 (ƒ)(Þ)     1,915 1,939
1.316% due 06/14/19 (Ê) 12,250 12,252 Ecopetrol SA          
Barclays Bank PLC           5.375% due 06/26/26 400 395
6.050% due 12/04/17 (Þ) 200 209 5.875% due 05/28/45 680 601
Barrick Gold Corp.           Emera, Inc.          
4.100% due 05/01/23 2,960 3,176 Series 16-A          

 

See accompanying notes which are an integral part of this quarterly report.

160 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
6.750% due 06/15/76 4,200 4,540 6.050% due 01/11/40 470 593
Ensco PLC           5.550% due 01/21/45 1,950 2,340
4.700% due 03/15/21 6,705 5,699 Mylan NV          
5.200% due 03/15/25 430 293 3.150% due 06/15/21 (Þ) 5,830 6,013
5.750% due 10/01/44 3,265 1,910 3.950% due 06/15/26 (Þ) 6,275 6,534
Fiat Chrysler Automobiles NV           Noble Holding International, Ltd.          
Series WI           3.950% due 03/15/22 1,285 951
5.250% due 04/15/23 580 586 6.950% due 04/01/25 1,220 1,010
GE Capital International Funding Co.                      
            Nokia OYJ          
Series Unlimited WI Co           6.625% due 05/15/39 3,420 3,685
 
3.373% due 11/15/25 766 840 Nordea Bank AB      
4.418% due 11/15/35 3,723 4,291 4.875% due 05/13/21 (Þ)     600 667
            OCP SA          
GlaxoSmithKline Capital PLC       4.500% due 10/22/25 (Þ) 330 332
2.850% due 05/08/22     400 421            
            Pernod Ricard SA          
Glencore Finance Canada, Ltd.       4.450% due 01/15/22 (Þ) 580 641
2.700% due 10/25/17 (Þ)     900 904        
Global SC Finance II SRL           5.500% due 01/15/42 (Þ)     150 187
Series 2014-1A Class A2           Perrigo Co. PLC          
3.090% due 07/17/29 (Þ) 1,720 1,642 2.300% due 11/08/18 3,255 3,269
HBOS PLC           Perrigo Finance Unlimited Co.          
Series GMTN           4.375% due 03/15/26 2,120 2,281
  6.750% due  05/21/18 (Þ)            Peruvian Government  International Bond          
HSBC  Bank  PLC 9,920 10,683     6.550%  due 03/14/37 90 123
7.650% due 05/01/25 990 1,246 5.625% due 11/18/50 550 697
HSBC Holdings PLC           Petrobras Global Finance BV          
3.400% due 03/08/21 1,000 1,037 5.750% due 01/20/20 200 199
2.950% due 05/25/21 2,195 2,233 5.375% due 01/27/21 2,170 2,059
4.250% due 08/18/25 1,000 1,029 6.250% due 03/17/24 580 544
3.900% due 05/25/26 3,385 3,515 Petroleos Mexicanos          
Series .           3.500% due 01/30/23 570 540
6.375% due 12/31/49 (ƒ) 400 392 4.875% due 01/18/24 290 295
Indonesia Government International                  
Bond           6.875% due 08/04/26 (Þ)     2,710 3,042
Series REGS           5.500% due 06/27/44 150 136
3.750% due 04/25/22 830 868 6.375% due 01/23/45 650 649
5.375% due 10/17/23 290 330 Series REGS          
ING Bank NV           6.875% due 08/04/26 240 270
5.800% due 09/25/23 (Þ) 600 668 Series WI          
Intelsat Jackson Holdings SA           4.500% due 01/23/26 2,875 2,780
7.250% due 04/01/19 4,290 3,207 5.625% due 01/23/46 5,005 4,585
Intesa Sanpaolo SpA           Poland Government International Bond          
5.017% due 06/26/24 (Þ) 1,100 1,049 5.125% due 04/21/21 1,090 1,242
Lloyds Banking Group PLC                  
        4.000% due 01/22/24     180 199
4.500% due 11/04/24     600 622 Province of Ontario Canada          
Macquarie Bank, Ltd.                  
        3.000% due 07/16/18     6,925 7,191
1.364% due 10/27/17 (Å)(Ê)     2,205 2,202 Province of Quebec Canada          
Magnetite XII, Ltd.                  
   Series 2015-12A Class A           0.910% due 09/04/18 (Ê)     4,250 4,240
1.821% due 04/15/27  (Ê)(Þ) 1,500 1,500 0.977% due 07/21/19 (Ê) 3,380 3,378
            Qatar Government  International Bond          
Mallinckrodt International Finance SA          4.625% due 06/02/46  (Þ) 3,675 3,941
4.750% due 04/15/23     470 411            
            Rio  Tinto Finance USA, Ltd.          
Mexico Government International Bond       3.750%  due 09/20/21 500 546
4.000% due 10/02/23     10 11            
        Royal Bank of Canada          
3.600% due 01/30/25     690 722 Series GMTN          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 161

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
0.929% due 10/13/17 (Ê) 3,489 3,478 2.125% due 04/07/21 3,200 3,256
4.650% due 01/27/26 4,230 4,652 Total Capital SA          
Royal Bank of Scotland Group PLC           2.125% due 08/10/18 2,680 2,730
6.400% due 10/21/19 1,000 1,117 Trade MAPS 1, Ltd.          
        Series 2013-1A Class A          
6.125% due 12/15/22     500 531        
        1.138% due 12/10/18 (Ê)(Þ)     6,410 6,390
5.125% due 05/28/24     1,500 1,505 Transocean, Inc.          
Royal Bank of Scotland NV                  
        3.750% due 10/15/17     3,349 3,282
4.650% due 06/04/18     200 207        
Russian Foreign Bond - Eurobond           6.800% due 03/15/38     1,550 915
        Turkey Government International Bond          
7.500% due 03/31/30 (Þ)     209 256        
    Series REGS           5.625% due 03/30/21     100 106
 
4.500%due 04/04/22 600 636 4.875% due 04/16/43 620 573
        Tyco Electronics Group SA          
7.500% due 03/31/30     367 449        
Schlumberger Norge AS           6.550% due 10/01/17     2,425 2,568
 Series 144a           UBS Group Funding Jersey, Ltd.          
4.200% due 01/15/21 (Þ) 500 545 4.125% due 09/24/25 (Þ) 500 528
Seagate HDD Cayman           4.125% due 04/15/26 (Þ) 2,715 2,870
4.750% due 06/01/23 3,615 3,372 Vale Overseas, Ltd.          
SFR Group SA           6.875% due 11/21/36 680 655
6.250% due 05/15/24 (Å) 780 748 Validus Holdings, Ltd.          
7.375% due 05/01/26 (Å) 2,370 2,367 8.875% due 01/26/40 2,273 3,166
 Shell  International  Finance  BV           Virgin Media Finance PLC          
   1.210% due 11/10/18 (Ê) 6,440 6,463 6.375% due 04/15/23 (Þ) 370 380
        Yara International ASA          
4.375% due 03/25/20     100 110        
        3.800% due 06/06/26 (Þ)     3,815 4,010
2.875% due 05/10/26     2,865 2,921            
4.375% due 05/11/45 1,000 1,084 Loan Agreements - 0.3%         297,946
4.000% due 05/10/46 1,985 2,042 Avago Technologies Cayman Finance,          
Sinopec Group Overseas Development           Ltd. Term Loan B1          
2014, Ltd.           4.250% due 02/01/23 (Ê) 2,819 2,818
4.375% due 04/10/24 (Þ) 730 802 HCA, Inc. Term Loan B4          
Sirius International Group, Ltd.           3.381% due 05/01/18 (Ê) 2,830 2,837
7.506% due 05/29/49 (ƒ)(Þ) 4,170 4,186 MacDermid, Inc. 1st Lien Term Loan          
Sky PLC           5.500% due 06/07/20 (Ê) 5,820 5,820
6.100% due 02/15/18 (Þ) 4,670 4,974 Reynolds Group Holdings, Inc. Term          
            Loan          
SMART Trust           1.000% due 02/01/23 (v) 305 305
    Series ABS 2015-3US Class A3A       Sungard Availability Services Capital,          
1.660% due 08/14/19     3,595 3,585            
 
Standard Chartered PLC           Inc. Term Loan B      
        6.000% due 03/31/19 (Ê)     2,841 2,401
5.700% due 03/26/44 (Þ)     1,400 1,558 Texas Competitve Electric Holdings Co.          
Statoil ASA           LLC Term Loan          
3.125% due 08/17/17 150 153 1.000% due 10/31/17 (v) 190 190
Suncor Energy, Inc.           T-Mobile USA, Inc. Term Loan B          
5.950% due 12/01/34 2,690 3,253 3.500% due 11/09/22 (Ê) 2,487 2,501
Telefonica Emisiones SAU                      
5.134% due 04/27/20 250 277 Mortgage-Backed Securities - 23.1%     16,872
Tengizchevroil Finance Co. International,         1211 Avenue of the Americas Trust          
Ltd.           Series 2015-1211 Class A1A2          
4.000% due 08/15/26 (Å) 1,355 1,350 3.901% due 08/10/35 (Þ) 4,050 4,524
Teva Pharmaceutical Finance                      
Netherlands III BV           225 Liberty Street Trust          
        Series 2016-225L Class A          
2.200% due 07/21/21     4,655 4,678        
        3.597% due 02/10/36 (Þ)     975 1,074
2.800% due 07/21/23     2,130 2,167 A10 Securitization LLC          
Toronto-Dominion Bank (The)           Series 2016-1 Class C          
1.542% due 01/22/19 (Ê) 5,135 5,165 5.750% due 03/15/35 (Þ) 4,391 4,426

 

See accompanying notes which are an integral part of this quarterly report.

162 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Adjustable Rate Mortgage Trust           2.848% due 09/25/35 (Ê) 1,498 1,373
Series 2006-1 Class 2A1           Banc  of America  Mortgage Trust          
3.270% due 03/25/36 (Ê) 606 441     Series 2005-D Class 2A7          
Alternative Loan Trust           3.195% due 05/25/35 (Ê) 1,126 1,054
Series 2005-85CB Class 2A2           Banc  of America Re-REMIC Trust          
5.500% due 02/25/36 12 11    Series 2010-UB5  Class A4A          
Series 2005-J13 Class 2A7           5.649% due 02/17/51 (Þ) 2,162 2,174
5.500% due 11/25/35 430 376 BCAP LLC Trust          
Series 2006-13T1 Class A3           Series 2009-RR11 Class 7A1          
6.000% due 05/25/36 2,952 2,331 2.551% due 02/26/36 (Ê)(Þ) 534 532
Series 2006-OC9 Class A1           Series 2010-RR7 Class 3A1          
0.243% due 12/25/46 (Ê) —   — 2.538% due 08/26/35 (Ê)(Þ) 1,283 1,273
Series 2007-8CB Class A1           Series 2010-RR7 Class 3A12          
5.500% due 05/25/37 2,457 2,028 2.798% due 08/26/35 (Å)(Ê) 6,930 4,973
Series 2007-15CB Class A5           Series 2011-R11 Class 15A1          
5.750% due 07/25/37 415 351 2.735% due 10/26/33 (Ê)(Þ) 2,664 2,683
Series 2007-15CB Class A7           Series 2011-R11 Class 20A5          
6.000% due 07/25/37 1,177 1,013 2.736% due 03/26/35 (Ê)(Þ) 956 956
LBAMLL Commercial Mortgage Securities         Bear Stearns Adjustable Rate Mortgage          
Trust           Trust          
Series 2014-520M Class A           Series 2003-8 Class 4A1          
4.185% due 08/15/46 (Þ) 660 771 2.904% due 01/25/34 (Ê) 137 136
Banc of America Alternative Loan Trust           Series 2004-5 Class 2A          
Series 2005-5 Class 2CB1           3.271% due 07/25/34 (Ê) 590 588
6.000% due 06/25/35 295 286 Series 2004-10 Class 22A1          
Banc of America Commercial Mortgage                  
            3.023% due 01/25/35 (Ê)     181 175
Trust                      
 
Series 2006-6 Class AJ           Series 2005-12 Class 13A1      
5.421% due 10/10/45 3,840 3,827 3.169% due 02/25/36 (Ê)     149 140
            Bear Stearns Commercial Mortgage          
Series 2007-2 Class AM             Securities Trust          
5.635% due 04/10/49 370 380 Series 2007-PW15  Class A4          
Series 2007-3 Class AJ           5.331% due 02/11/44 3,089 3,131
5.539% due 06/10/49 2,530 2,539 Bear Stearns Structured Products, Inc.          
Banc of America Funding Corp.           Series 2007-R6 Class 2A1          
Series 2015-R3           2.478% due 12/26/46 (Ê) 1,232 918
0.677% due 03/27/36 5,738 3,276 BHMS Mortgage Trust          
Series 2015-R3 Class 5A2           Series 2014-ATLS Class BFX          
0.677% due 06/29/37 (Å)(Ê) 9,143 4,677 4.241% due 07/05/33 (Þ) 2,745 2,769
Banc of America Funding Trust           CFCRE Commercial Mortgage Trust          
Series 2006-3 Class 5A8           Series 2011-C2 Class C          
5.500% due 03/25/36 1,124 1,063 5.588% due 12/15/47 (Þ) 860 972
Series 2006-F Class 1A2           Series 2016-C3 Class A3          
2.706% due 07/20/36 (Ê) 77 60 3.865% due 01/10/48 6,630 7,402
Banc of America Merrill Lynch           CGCMT Trust          
Commercial Mortgage, Inc.           Series 2009-RR1 Class MA4A          
Series 2005-3 Class AM           5.485% due 03/17/51 (Þ) 400 403
4.727% due 07/10/43 100 99 CHL Mortgage Pass-Through Trust          
Series 2008-1 Class A4           Series 2004-11 Class 2A1          
6.424% due 02/10/51 1,164 1,219 2.472% due 07/25/34 (Ê) 1,610 1,587
Banc of America Mortgage Securities,           Series 2004-22 Class A3          
Inc.                  
Series 2004-1 Class 5A1           2.643% due 11/25/34 (Ê)     741 700
        Series 2006-14 Class A4          
6.500% due 09/25/33     9 9        
Series 2004-11 Class 2A1           6.250% due 09/25/36     2,392 2,161
        Series 2006-21 Class A8          
5.750% due 01/25/35     314 318        
Series 2004-F Class 1A1           5.750% due 02/25/37     1,835 1,608
        Series 2007-4 Class 1A10          
2.677% due 07/25/34 (Ê)     255 259        
Series 2005-H Class 2A5           6.000% due 05/25/37     4,233 3,582

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 163

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 2007-5 Class A51           Series 2007-C4 Class A4          
5.750% due 05/25/37 1,843 1,679 6.147% due 09/15/39 4,167 4,287
Series 2007-9 Class A11           Credit Suisse First Boston Mortgage          
5.750% due 07/25/37 1,103 1,007 Securities Corp.          
            Series 2004-C4 Class E          
 
Series 2007-9 Class A13       5.536% due 10/15/39 (Þ) 2,012 2,104
5.750% due 07/25/37     732 672            
Citigroup Commercial  Mortgage ATrust           Series 2005-9 Class 2A1          
    Series 2013-375P  Class  A           5.500% due 10/25/35 2,154 1,988
 
3.251% due 05/10/35 (Þ) 800 858 Series 2005-C3 Class AJ      
Series 2013-375P Class D           4.771% due 07/15/37     5 5
 
3.518% due 05/10/35 (Þ) 3,810 3,852 Series 2005-C3 Class B      
Series 2015-GC29 Class D           4.882% due 07/15/37     1,505 1,504
3.110% due 04/10/48 (Þ) 520 364 CSAIL Commercial Mortgage Trust          
Citigroup Mortgage Loan Trust,  Inc.           Series 2015-C3 Class A3          
 Series 2004-UST1 Class  A5           3.447% due 08/15/48 270 293
2.044% due 08/25/34 (Ê) 2,746 2,697 CSMC Mortgage-Backed Trust          
            Series 2007-2 Class 3A4          
 
Series 2005-11 Class A2A       5.500% due 03/25/37 1,963 1,782
2.730% due 10/25/35 (Ê)     81 80            
            CSMC Trust          
 
Series 2007-AR8 Class 2A1A       Series 2014-USA Class A2          
2.888% due 07/25/37 (Ê)     1,200 1,130        
            3.953% due 09/15/37 (Þ)     2,970 3,247
Series 2012-7 Class 10A2                      
2.729% due 09/25/36 (Ê)(Þ) 2,187 1,985 Series 2015-12R      
            0.953% due 11/30/37     5,450 3,243
Commercial Mortgage Trust           DBCCRE Mortgage Trust          
Series 2005-LP5 Class D                      
4.646% due 05/10/43 5 5 Series 2014-ARCP Class A      
            4.238% due 01/10/34 (Þ)     280 307
Series 2007-C9 Class AJ                      
5.650% due 12/10/49 864 874 Series 2014-ARCP Class C      
            4.935% due 01/10/34 (Þ)     3,985 4,209
Series 2007-GG11 Class AJ           DBJPM Mortgage Trust          
6.032% due 12/10/49 2,642 2,649    Series  2016-C3  Class A5          
Series 2008-LS1 Class A4B           2.890% due 09/10/49 1,630 1,702
6.094% due 12/10/49 2,136 2,213 DSLA Mortgage Loan Trust          
Series 2010-RR1 Class GEA           Series 2007-AR1 Class 2A1A          
5.543% due 12/11/49 (Þ) 7,300 7,381 0.579% due 04/19/47 (Ê) 6,180 4,944
Series 2013-300P Class A1           Fannie Mae          
4.353% due 08/10/30 (Þ) 950 1,088 10.000% due 2018 1 1
Series 2013-CR7 Class A1           3.766% due 2020 5,726 6,228
0.716% due 03/10/46 2,025 2,021        
            4.000% due 2020     4 4
Series 2014-277P Class A                  
        3.400% due 2021     4,790 5,193
3.611% due 08/10/49 (Þ)     1,070 1,183        
Series 2015-3BP Class A           3.500% due 2021     204 216
3.178% due 02/10/35 (Þ) 1,030 1,098 3.840% due 2021 3,715 4,094
Series 2015-CR24 Class D           3.890% due 2021 1,836 2,023
3.463% due 08/10/55 180 135 4.338% due 2021 5,711 6,331
Series 2015-LC19 Class A4                  
        5.500% due 2021     72 77
3.183% due 02/10/48     1,232 1,319        
  Series 2015-PC1 Class B           2.820% due 2022     2,506 2,666
 
4.443% due 07/10/50 1,100 1,207 2.830% due 2022 2,303 2,451
Series 2016-787S Class A           5.500% due 2022 313 339
3.545% due 02/10/36 (Þ) 975 1,072 4.500% due 2023 49 53
CommercialMortgage Trust           5.500% due 2023 195 212
Series 2016-GCT Class A                  
        2.500% due 2024     6,155 6,385
2.681% due 08/10/29 (Þ)     971 1,000        
Credit Suisse Commercial Mortgage           4.000% due 2024     52 56
Trust Series           5.500% due 2024 451 491
Series 2007-C1 Class A3                  
        7.500% due 2024     1 1
5.383% due 02/15/40     4,244 4,274            

 

See accompanying notes which are an integral part of this quarterly report.

164 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
10.000% due 2024 2 2 4.500% due 2042   438 477
4.000% due 2025 2,086 2,197 3.500% due 2043   4,438 4,735
4.500% due 2025 40 43 3.000% due 2044   8,431 8,799
5.500% due 2025 822 865 3.500% due 2045   33,551 35,515
2.550% due 2026 1,460 1,526 4.000% due 2045   8,742 9,431
3.100% due 2026 1,605 1,748 3.500% due 2046   45,153 47,690
3.500% due 2026 1,707 1,810 4.000% due 2046   14,593 15,820
4.000% due 2026 726 769 4.500% due 2046   4,349 4,877
4.500% due 2026 133 152 15 Year TBA(Ï)            
5.500% due 2026 134 151 2.500% 19,460 20,156
9.000% due 2026 4 5 3.000% 6,600 6,925
2.965% due 2027 3,944 4,225 3.500% 13,420 14,211
        30 Year TBA(Ï)        
3.000% due 2027     1,899 1,998        
        3.000%   39,045 40,631
4.500% due 2027     477 544        
        3.500%   43,780 46,239
5.500% due 2027     51 57        
        4.000%   42,715 45,781
3.500% due 2028     1,693 1,808        
        4.500%   21,862 23,839
7.500% due 2029     5 6        
        5.000%   4,145 4,588
3.500% due 2030     1,636 1,738 Series 1997-281 Class 2        
8.500% due 2030 49 56 Interest Only STRIP            
9.500% due 2030 17 19 9.000% due 11/25/26 (Å)   16 4
7.500% due 2031 13 13 Series 2000-306 Class IO            
        Interest Only STRIP            
8.500% due 2031     89 102 8.000% due 05/25/30 (Å)   16 4
3.500% due 2032 2,352 2,511 Series 2001-317 Class 2            
7.500% due 2032 18 21 Interest Only STRIP            
8.500% due 2032 11 14 8.000% due 12/25/31 (Å)   24 5
        Series 2002-320 Class 2            
3.000% due 2033     5,057 5,326 Interest Only STRIP            
3.500% due 2033 4,276 4,555 7.000% due 04/25/32 (Å)   7 2
5.500% due 2034 876 992 Series 2003-339 Class 23            
 
4.500% due 2035 556 645 Interest Only STRIP        
        5.000% due 06/25/18       111 3
4.500% due 2035     4,235 4,654              
        Series 2003-343 Class 6            
5.500% due 2035     574 651 Interest Only STRIP            
2.444% due 2036(Ê) 5 6 5.000% due 10/25/33   431 78
4.000% due 2036 57 62 Series 2003-345 Class 18            
        Interest Only STRIP            
5.500% due 2036     1,467 1,639          
        4.500% due 12/25/18       375 12
4.000% due 2037     58 62 Series 2003-345 Class 19            
5.500% due 2037 1,000 1,111 Interest Only STRIP            
5.500% due 2038 362 407 4.500% due 01/25/19   403 13
4.500% due 2039 564 616 Series 2005-365 Class 12            
        Interest Only STRIP            
4.500% due 2039     598 697          
        5.500% due 12/25/35       1,306 213
6.000% due 2039     508 581 Series 2006-369 Class 8            
4.500% due 2040 200 219 Interest Only STRIP            
5.500% due 2040 6,413 7,272 5.500% due 04/25/36   188 38
        Fannie Mae Connecticut Avenue            
4.000% due 2041     995 1,070 Securities            
4.500% due 2041 5,787 6,337 Series 2016-C04 Class 1M1            
4.500% due 2041 1,291 1,476 1.926% due 01/25/29 (Ê)   4,980 4,996
 
5.000% due 2041 8,989 9,972 Series 2016-C04 Class 1M2        
        4.726% due 01/25/29 (Ê)       4,980 5,006
3.000% due 2042     4,857 5,086 Fannie Mae Grantor Trust            

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 165

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 1999-T2 Class A1           Series 2009-96 Class DB          
7.500% due 01/19/39 27 31 4.000% due 11/25/29 3,406 3,648
Series 2001-T4 Class A1           Series 2010-95 Class S          
7.500% due 07/25/41 2,041 2,526 Interest Only STRIP          
Fannie Mae REMICS           6.112% due 09/25/40 (Ê) 6,770 2,018
Series 1996-46 Class ZA           Series 2013-111 Class PL          
7.500% due 11/25/26 66 75 2.000% due 12/25/42 3,641 3,546
Series 1997-68 Class SC           Series 2013-119 Class NT          
Interest Only STRIP           4.000% due 12/25/43 3,600 4,089
8.338% due 05/18/27 (Å)(Ê) 23 5 Series 2015-43 Class PA          
Series 1999-56 Class Z           3.500% due 01/25/43 3,077 3,181
7.000% due 12/18/29 235 270 Series 2016-23 Class ST          
Series 2001-4 Class SA           Interest Only STRIP          
7.388% due 02/17/31 (Å)(Ê) 3 — 5.547% due 11/25/45 (Ê) 4,068 1,007
Series 2002-57 Class PG           Fannie Mae Whole Loan          
        Series 2003-W1 Class 2A          
5.500% due 09/25/17     143 145        
Series 2003-25 Class IK           6.302% due 12/25/42     56 67
            Series 2004-W9 Class 2A1          
 
Interest Only STRIP       6.500% due 02/25/44 119 139
7.000% due 04/25/33 (Å)     63 12 Series 2004-W11 Class 1A2          
Series 2003-32 Class UI                  
Interest Only STRIP           6.500% due 05/25/44     251 305
        Fannie Mae-Aces          
6.000% due 05/25/33 (Å)     51 12 Series 2011-M2 Class A3          
Series 2003-33 Class IA           3.764% due 04/25/21 4,250 4,655
Interest Only STRIP           Series 2012-M8 Class ASQ2          
6.500% due 05/25/33 (Å) 301 52 1.520% due 12/25/19 7,668 7,700
Series 2003-35 Class FY           Series 2013-M4 Class ASQ2          
0.570% due 05/25/18 (Ê) 188 188 1.451% due 02/25/18 3,339 3,356
Series 2003-35 Class IU           Series 2014-M13 Class AB2          
Interest Only STRIP           2.951% due 08/25/24 3,645 3,861
6.000% due 05/25/33 (Å) 55 11 Series 2014-M13 Class ASQ2          
Series 2003-35 Class UI           1.637% due 11/25/17 14,230 14,288
Interest Only STRIP           Series 2015-M1 Class ASQ2          
6.500% due 05/25/33 (Å) 67 11 1.626% due 02/25/18 8,780 8,828
Series 2003-64 Class JI           Series 2015-M7 Class ASQ1          
Interest Only STRIP           0.882% due 04/25/18 4,332 4,329
6.000% due 07/25/33 (Å) 32 7 Series 2015-M7 Class ASQ2          
Series 2004-70 Class EB           1.550% due 04/25/18 3,325 3,344
5.000% due 10/25/24 607 657 Series 2015-M11 Class A1          
Series 2005-110 Class MB           2.097% due 04/25/25 4,470 4,573
5.500% due 09/25/35 208 221 Series 2015-M15 Class ASQ1          
Series 2005-117 Class LC           0.849% due 01/25/19 8,068 8,061
5.500% due 11/25/35 1,857 2,012 Series 2016-M2 Class ABV2          
Series 2006-22 Class CE           2.131% due 01/25/23 3,810 3,832
4.500% due 08/25/23 615 657 Series 2016-M3 Class ASQ2          
Series 2006-118 Class A1           2.263% due 02/25/23 5,170 5,325
0.259% due 12/25/36 (Å)(Ê) 59 57 Series 2016-M6 Class AB2          
Series 2007-73 Class A1           2.395% due 05/25/26 4,800 4,869
0.259% due 07/25/37 (Å)(Ê) 568 557 Series 2016-M7 Class AV2          
Series 2009-39 Class LB           2.157% due 10/25/23 11,995 12,277
4.500% due 06/25/29 1,236 1,342 FDIC Guaranteed Notes Trust          
Series 2009-70 Class PS           Series 2010-S1 Class 1A          
Interest Only STRIP           1.007% due 02/25/48 (Ê)(Þ) 102 102
6.581% due 01/25/37 (Ê) 10,163 1,922 FDIC Trust          
Series 2009-71 Class MB           Series 2010-R1 Class A          
4.500% due 09/25/24 903 968 2.184% due 05/25/50 (Þ) 687 687

 

See accompanying notes which are an integral part of this quarterly report.

166 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
Series 2011-R1 Class A           8.500% due 2025   6 7
2.672% due 07/25/26 (Þ) 2,821 2,875 3.500% due 2027   2,574 2,731
Federal Home Loan Mortgage Corp.                    
Multifamily Structured Pass Through           8.500% due 2027       40 48
Certificates           3.500% due 2030   1,365 1,458
Series 2016-KF17 Class A                    
        7.500% due 2030       1 1
0.950% due 03/25/23 (Ê)     8,585 8,603          
Federal Home Loan Mortgage Corp.           8.500% due 2030       19 22
Multifamily Structured Pass-Through           3.000% due 2031   2,706 2,842
Certificates           8.000% due 2031   3 4
Series 2011-K702 Class X1                    
Interest Only STRIP           3.000% due 2035       442 465
1.452% due 02/25/18 52,887 991 3.500% due 2035   2,383 2,538
Series 2015-K044 Class A2           5.000% due 2035   44 50
2.811% due 01/25/25 3,050 3,252 3.000% due 2036   2,039 2,143
Series 2015-K050 Class A2                    
        4.000% due 2036       115 123
3.334% due 08/25/25     7,300 8,098          
    Series 2015-K151  Class A3           6.000% due 2038       1,922 2,227
3.511% due 04/25/30 2,405 2,695 4.500% due 2039   6,614 7,398
Series 2016-K053 Class A2           5.500% due 2039   1,239 1,383
2.995% due 12/25/25 7,300 7,893 4.000% due 2040   8,585 9,419
Series 2016-KF15 Class A           5.000% due 2040   290 319
1.070% due 02/25/23 (Ê) 13,908 13,967     1,665 1,870
            5.500% due 2040            
Series 2016-KJ04 Class A2                    
        4.000% due 2041       8,532 9,301
2.131% due 01/25/21     2,160 2,221          
Series 2016-KW01 Class A2           5.500% due 2041       2,296 2,597
2.853% due 01/25/26 2,950 3,071 3.000% due 2042   2,810 2,924
Federal Home Loan Mortgage Corp.           3.500% due 2043   3,458 3,685
Structured Pass-Through Securities                    
Series 2002-42 Class A6           4.000% due 2044       6,096 6,613
9.500% due 02/25/42 43 54 3.500% due 2045   14,151 15,136
Series 2003-56 Class A5           4.000% due 2045   7,520 8,051
5.231% due 05/25/43 1,698 1,913 3.000% due 2046   16,996 17,687
Series 2003-58 Class 2A           3.500% due 2046   28,105 29,738
6.500% due 09/25/43 147 176          
            4.000% due 2046       17,872 19,255
First Horizon Asset Securities, Inc.                    
Series 2005-AR4 Class 2A1           4.500% due 2046       850 935
 
2.666% due 10/25/35 (Ê) 1,265 1,041 15 Year TBA(Ï)        
First Horizon Mortgage Pass-Through           2.500%     7,560 7,838
Trust           3.000% 1,470 1,543
Series 2005-AR1 Class 2A1                        
2.608% due 04/25/35 (Ê) 698 683 Freddie Mac Mortgage  Trust            
First Union National Bank-Bank of              Series  2010-K7  Class  B        
America NA Commercial Mortgage           5.441% due 04/25/20 (Þ)       4,830 5,379
Trust           Freddie Mac Reference REMIC            
Interest Only STRIP           Series 2006-R007 Class ZA            
Series 2001-C1 Class IO1           6.000% due 05/15/36   2,118 2,413
2.200% due 03/15/33 (Þ) 2,334 — Freddie Mac REMICS            
Four Times Square Trust Commercial           Series 1994-1730 Class Z            
Mortgage Pass-Through Certificates           7.000% due 05/15/24   72 81
Series 2006-4TS Class A           Series 1999-2129 Class SG            
5.401% due 12/13/28 (Þ) 390 442 6.838% due 06/17/27 (Å)(Ê)   430 76
Freddie Mac           Series 2000-2247 Class SC            
10.500% due 2017 —   — 7.334% due 08/15/30 (Å)(Ê)   14 2
8.000% due 2020 10 11 Series 2002-2463 Class SJ            
10.000% due 2020 2 2 7.566% due 03/15/32 (Å)(Ê)   38 11
        Series 2003-2610 Class UI            
11.000% due 2020     2 2          
        6.500% due 05/15/33 (Å)       10 2
10.500% due 2021     3 3              

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 167

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 2003-2621 Class QH           8.439% due 08/16/29 (Å)(Ê) 57 14
5.000% due 05/15/33 592 656 Series 2010-14 Class A          
Series 2003-2624 Class QH           4.500% due 06/16/39 699 745
5.000% due 06/15/33 590 656 Series 2010-H04 Class BI          
Series 2003-2649 Class IM           Interest Only STRIP          
7.000% due 07/15/33 (Å) 82 21 1.406% due 04/20/60 10,406 469
Series 2003-2697 Class LG           Series 2010-H12 Class PT          
4.500% due 10/15/23 504 544 5.470% due 11/20/59 2,270 2,323
Series 2003-2725 Class TA           Series 2010-H22 Class JI          
4.500% due 12/15/33 1,300 1,565 Interest Only STRIP          
Series 2006-3123 Class HT           2.503% due 11/20/60 18,584 1,216
5.000% due 03/15/26 1,300 1,421 Series 2011-H02 Class BI          
    Series 2006-3150 Class EQ           Interest Only STRIP          
5.000%  due 05/15/26 947 1,032 0.420% due 02/20/61 14,610 180
Series 2006-R006 Class ZA           Series 2012-H11 Class CI          
        Interest Only STRIP          
6.000% due 04/15/36     2,960 3,413        
Series 2007-3335 Class FT           2.909% due 04/20/62     17,907 1,095
        Series 2012-H23 Class FI          
0.584% due 08/15/19 (Ê)     284 283 Interest Only STRIP          
Series 2009-3558 Class G                  
        0.783% due 10/20/62     19,392 343
4.000% due 08/15/24     150 166 Series 2013-H03 Class HI          
Series 2010-3632 Class PK           Interest Only STRIP          
5.000% due 02/15/40 1,784 1,980 2.622% due 12/20/62 13,652 1,147
Series 2010-3704 Class DC           Series 2013-H06 Class HI          
4.000% due 11/15/36 1,148 1,224 Interest Only STRIP          
Series 2011-3963 Class JB           2.929% due 01/20/63 27,567 1,617
4.500% due 11/15/41 3,500 4,067 Series 2014-190 Class PL          
Series 2012-3997 Class PB           3.500% due 12/20/44 4,959 5,454
4.000% due 02/15/42 4,000 4,495 Ginnie Mae I          
Series 2013-4233 Class MD           11.000% due 2020 1 1
1.750% due 03/15/25 2,298 2,310 10.500% due 2021 6 6
Series 2014-4423 Class VB                  
        10.000% due 2022     8 8
3.500% due 06/15/33     1,090 1,165        
Freddie  Mac  Strips           2.140% due 2023     3,307 3,374
 Series  1998-191 Class IO           10.000% due 2025 10 11
Interest Only STRIP           7.500% due 2031 10 11
8.000% due 01/01/28 (Å) 15 3 7.500% due 2032 5 7
Series 1998-194 Class IO           4.500% due 2039 11,362 12,725
Interest Only STRIP                  
        5.000% due 2039     4,782 5,385
6.500% due 04/01/28 (Å)     36 8        
   Interest Only STRIP           4.500% due 2040     1,537 1,698
 Series 2001-212 Class IO           4.500% due 2041 2,698 2,972
6.000% due 05/01/31 (Å) 37 7 4.500% due 2042 238 262
Series 2001-215 Class IO           3.000% due 2043 1,217 1,278
Interest Only STRIP           Ginnie Mae II          
8.000% due 06/15/31 (Å) 37 10 1.750% due 2040(Ê) 736 759
Series 2012-271 Class 30           2.000% due 2040(Ê) 1,094 1,131
3.000% due 08/15/42 7,351 7,647 3.000% due 2040(Ê) 1,121 1,162
Freddie Mac Whole Loan Securities                  
    Trust           5.500% due 2043     2,823 3,114
Series 2016-SC01 Class M1           3.000% due 2046 11,197 11,776
3.883% due 07/25/46 1,880 1,905 3.500% due 2046 17,252 18,358
FREMF Mortgage Trust           4.000% due 2046 6,461 6,901
Series 2015-K721 Class B                  
        5.390% due 2059     1,421 1,460
3.681% due 11/25/47 (Þ)     1,595 1,563        
Ginnie Mae           4.810% due 2061     6,181 6,457
Series 1999-27 Class SE                      

 

See accompanying notes which are an integral part of this quarterly report.

168 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
4.845% due 2062   1,330 1,401 2.839% due 12/25/35 (Ê) 440 329
5.065% due 2062   2,130 2,246 JPMBB Commercial Mortgage Securities        
          Trust          
4.652% due 2063       806 897 Series 2013-C14 Class AS          
4.661% due 2063   303 335 4.409% due 08/15/46 1,780 2,011
30 Year TBA(Ï)             Series 2014-C26 Class C          
3.000% 8,425 8,849 4.570% due 01/15/48 315 330
3.500% 8,920 9,480 JPMorgan Alternative Loan Trust          
        Series 2006-A2 Class 3A1          
4.000%     5,600 5,980        
GMACM Mortgage Loan Trust           2.674% due 05/25/36 (Ê)     3,245 2,471
Series 2005-AR2 Class 4A             JPMorgan Chase Commercial Mortgage          
          Securities Corp.          
3.425% due 05/25/35 (Ê)       1,630 1,501 Series 2006-LDP8 Class AM          
Government National Mortgage                    
Association             5.440% due 05/15/45     556 556
Series 2012-135 Class IO             JPMorgan Chase Commercial Mortgage          
Interest Only STRIP             Securities Trust          
          Series 2004-LN2 Class B          
0.688% due 01/16/53     15,308 737        
              5.446% due 07/15/41     1,550 1,541
GreenPoint Mortgage Funding Trust                        
 
Series 2005-AR5 Class 1A1             Series 2005-CB12 Class AJ      
0.440% due 11/25/45 (Ê)   141 122 4.987% due 09/12/37     1,206 1,206
GS Mortgage  SecuritiesCorp.  II             Series 2007-CB18 Class A4          
 Series 2011-GC5 Class  A4             5.440% due 06/12/47 1,799 1,817
 
3.707% due 08/10/44   3,295 3,581 Series 2007-LDPX Class A3      
GS Mortgage Securities Trust             5.420% due 01/15/49     179 181
Series 2013-GC12 Class A1             Series 2007-LDPX Class AM          
0.742% due 06/10/46   790 789 5.464% due 01/15/49 5,150 4,983
Series 2013-GC14 Class AS             Series 2015-CSMO Class A          
4.507% due 08/10/46 (Å)   1,630 1,867 1.447% due 01/15/32 (Ê)(Þ) 900 900
Series 2013-GC16 Class A1             Series 2015-FL7 Class A          
1.264% due 11/10/46   304 305 1.683% due 05/15/28 (Ê)(Þ) 1,241 1,235
GSMPS Mortgage Loan Trust             Series 2016-ATRM Class B          
Series 1998-1 Class A             3.969% due 10/05/28 (Þ) 2,785 2,868
8.000% due 09/19/27 (Þ)   48 47 JPMorgan Mortgage Trust          
Series 1998-3 Class A             Series 2004-A2 Class 3A1          
7.750% due 09/19/27 (Þ)   36 37 2.573% due 05/25/34 (Ê) 240 231
Series 1999-3 Class A             Series 2005-A1 Class 6T1          
8.000% due 08/19/29 (Þ)   137 126 2.873% due 02/25/35 (Ê) 67 63
Series 2005-RP1 Class 1A4             Series 2005-A4 Class 1A1          
8.500% due 01/25/35 (Þ)   418 446 2.661% due 07/25/35 (Ê) 354 347
Series 2006-RP1 Class 1A2             Series 2005-A8 Class 1A1          
7.500% due 01/25/36 (Þ)   2,162 2,313 2.636% due 11/25/35 (Ê) 1,046 984
Series 2006-RP1 Class 1A3             Series 2005-S3 Class 1A2          
8.000% due 01/25/36 (Þ)   974 1,056 5.750% due 01/25/36 70 60
GSR Mortgage Loan Trust             Series 2006-A6 Class 1A2          
Series 2005-AR7 Class 6A1             2.677% due 10/25/36 (Ê) 595 536
2.842% due 11/25/35 (Ê)   418 401 Series 2007-A1 Class B1          
HarborView Mortgage Loan Trust             2.772% due 07/25/35 (Ê) 61 25
Series 2005-4 Class 3A1             Series 2007-A4 Class 3A3          
2.744% due 07/19/35 (Ê)   1,922 1,661 4.603% due 06/25/37 (Ê) 1,226 1,091
Hilton USA Trust             Series 2013-1 Class 2A2          
Series 2013-HLT Class EFX                    
          2.500% due 03/25/43 (Þ)     4,849 4,914
4.602% due 11/05/30 (Þ)       5,000 5,026 Series 2015-SGP Class C          
IndyMac INDA Mortgage Loan Trust                    
Series 2007-AR1 Class 1A1             3.933% due 07/15/36 (Ê)(Þ)     4,805 4,808
          JPMorgan Resecuritization Trust Series          
2.822% due 03/25/37 (Ê)       2,021 1,867 Series 2009-5 Class 2A2          
IndyMac INDX Mortgage Loan Trust                    
Series 2005-AR25 Class 1A21             1.981% due 01/26/37 (Ê)(Þ)     5,675 4,691
              LB-Commercial Mortgage Trust          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 169

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 2007-C3 Class AJ         Series 2006-T21 Class B        
5.923% due 07/15/44 2,440 2,401 5.312% due 10/12/52 (Þ) 1,566 1,562
Series 2007-C3 Class AM         Series 2007-IQ14 Class A2FL        
5.923% due 07/15/44 4,780 4,914 0.358% due 04/15/49 (Ê) 1,992 1,990
LB-UBS Commercial Mortgage Trust         Series 2007-IQ15 Class A4        
Series 2004-C6 Class F         6.114% due 06/11/49 1,895 1,962
5.206% due 08/15/36 497 497 Series 2007-IQ16 Class AM        
Series 2005-C7 Class F         6.053% due 12/12/49 6,907 7,207
5.350% due 11/15/40 2,325 2,303 Series 2007-T25 Class AJ        
Series 2007-C1 Class AJ         5.574% due 11/12/49 2,962 2,949
5.484% due 02/15/40 3,840 3,856 Series 2008-T29 Class AM        
Series 2007-C1 Class AM         6.261% due 01/11/43 4,950 5,208
5.455% due 02/15/40 2,570 2,594 Series 2011-C2 Class A2        
Series 2007-C2 Class A3         3.476% due 06/15/44 (Þ) 561 562
5.430% due 02/15/40 4,021 4,071 Series 2012-C4 Class A2        
Series 2007-C7 Class AJ         2.111% due 03/15/45 1,810 1,816
6.449% due 09/15/45 4,830 4,817 Series 2015-MS1 Class A4        
Mastr Adjustable Rate Mortgages Trust         3.779% due 05/15/48 1,360 1,521
Series 2004-10 Class 2A2            Series 2016-UBS9 Class A4        
3.279% due 10/25/34 (Ê) 5 3 3.594%  due 03/15/49 1,425 1,574
Series 2005-1 Class B1         Morgan Stanley Capital I, Inc.        
2.759% due 03/25/35 (Ê) 570 183   Series 2007-IQ14  Class  A2        
Series 2006-2 Class 4A1         5.610% due 04/15/49 381 382
2.809% due 02/25/36 (Ê) 466 427 Series 2007-IQ14 Class A4        
Series 2007-HF2 Class A1         5.692% due 04/15/49 1,480 1,506
0.756% due 09/25/37 (Ê) 2,900 2,615 Morgan Stanley Re-REMIC Trust        
Mastr Reperforming Loan Trust         Series 2009-GG10 Class A4A        
Series 2005-1 Class 1A3         5.794% due 08/12/45 (Þ) 328 333
7.000% due 08/25/34 (Þ) 353 358 MSBAM Commercial Mortgage        
Series 2005-2 Class 1A4         Securities Trust        
 
8.000% due 05/25/35 (Þ) 719 757 Series 2012-CKSV Class A2      
Merrill Lynch Mortgage Investors Trust         3.277% due 10/15/30 (Þ)   1,255 1,305
Series 2005-A9 Class 2A1C         MSCG Trust        
 
2.649% due 12/25/35 (Ê) 3,825 3,643 Series 2015-ALDR Class A2      
Merrill Lynch Mortgage Trust         3.577% due 06/07/35 (Þ)   1,435 1,527
Series 2005-A10 Class A         NCUA Guaranteed Notes Trust        
 
0.431% due 02/25/36 (Ê) 312 283 Series 2010-R3 Class 3A      
Series 2006-C2 Class AM         2.400% due 12/08/20   1,249 1,261
5.782% due 08/12/43 11 11 Nomura Resecuritization Trust        
          Series 2013-1R Class 3A12        
 
Series 2008-C1 Class A4       0.351% due 10/26/36 (Ê)(Þ) 2,482 2,181
5.690% due 02/12/51   3,366 3,494          
Morgan Stanley Bank of America Merrill         Series 2014-1R Class 5A3        
Lynch Trust         0.341% due 10/26/36 (Ê)(Þ) 4,173 3,387
Series 2015-C24 Class A4         Series 2015-4R Class 1A14        
3.732% due 05/15/48 1,000 1,108 0.590% due 03/26/47 (Å)(Ê) 5,270 2,921
Series 2015-C24 Class C         Series 2015-8R Class 2A2        
4.499% due 05/15/48 455 446 0.593% due 10/26/36 3,209 1,693
Series 2015-C26 Class A3         Series 2015-11R Class 3A2        
3.211% due 11/15/48 5,055 5,296 2.369% due 05/25/36 (Þ) 1,272 1,187
Morgan Stanley Capital I Trust         Nomura Resecurization Trust        
Series 2003-IQ4 Class J         Series 2015-8R Class 4A4        
5.500% due 05/15/40 (Þ) 364 365 1.488% due 11/25/47 (Å) 7,732 3,590
Series 2005-IQ9 Class B         Prime Mortgage Trust        
4.860% due 07/15/56 1,190 1,183 Series 2004-CL1 Class 1A2        
Series 2006-HQ8 Class C         0.846% due 02/25/34 (Ê) 23 21
5.590% due 03/12/44 1,405 1,345 RAMP Trust        
          Series 2004-SL1 Class A3        

 

See accompanying notes which are an integral part of this quarterly report.

170 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
7.000% due 11/25/31 2 2 Wachovia Bank Commercial Mortgage          
            Trust Series          
RBS Commercial Funding, Inc. Trust           Series 2006-C26 Class AM          
Series 2013-GSP Class A                  
        6.172% due 06/15/45     3,960 3,972
3.834% due 01/13/32 (Þ)     1,055 1,170 Wachovia Bank Commerical Mortgage          
RBSCF Trust           Trust          
Series 2010-RR4 Class WBCA                  
        5.413% due 12/15/43     1,500 1,497
5.509% due 04/16/47 (Þ)     225 225 Waldorf Astoria Boca Raton Trust          
RBSSP Resecuritization Trust           Series 2016-BOCA Class E          
Series 2010-3 Class 9A1                  
        4.820% due 06/15/29 (Å)(Ê)     4,000 4,010
5.500% due 02/26/35 (Þ)     263 265 Washington Mutual Mortgage Pass-          
Reperforming Loan REMIC Trust           Through Certificates Trust          
Series 2005-R2 Class 2A4           Series 2004-AR1 Class A          
8.500% due 06/25/35 (Þ) 76 80 2.436% due 03/25/34 (Ê) 347 348
RFMSI Trust           Series 2004-AR13 Class A1A          
Series 2006-SA4 Class 2A1                  
        1.166% due 11/25/34 (Ê)     2,252 2,041
3.660% due 11/25/36 (Ê)     378 331 Series 2005-AR6 Class 2A1A          
Rialto Capital Management LLC                  
Series 2014-LT5 Class A           0.676% due 04/25/45 (Ê)     5,172 4,849
        Series 2006-AR7 Class 2A          
2.850% due 05/15/24 (Þ)     137 137        
RREF LLC           1.390% due 07/25/46 (Ê)     1,443 1,165
 Series 2014-LT6 Class A           Series 2006-AR10 Class 1A1          
 
2.750% due 09/15/24 (Þ) 127 127 2.399% due 09/25/36 4,013 3,620
 Series 2015-LT7 Class A           Series 2007-HY1 Class 3A3          
 
3.000% due 12/25/32 (Þ) 1,522 1,522 4.215% due 02/25/37 (Ê) 2,981 2,686
 Sequoia Mortgage Trust           Series 2007-HY2 Class 2A3          
 
  1.874% due 02/25/43 3,847 3,706 1.986% due 04/25/37 (Ê) 3,401 2,521
  Series 2013-4 Class A1           Series 2007-HY5 Class 3A1          
 
2.325% due 04/25/43 7,647 7,536 4.345% due 05/25/37 (Ê) 3,481 3,042
SG Commercial Mortgage Securities           Series 2007-OA2 Class 1A          
Trust           1.110% due 03/25/47 (Ê) 4,428 3,345
Series 2016-C5 Class A4           Wells Fargo Commercial Mortgage Trust          
3.055% due 10/10/48 2,870 2,991 Series 2015-NXS1 Class D          
Structured Adjustable Rate Mortgage           4.104% due 05/15/48 40 33
Loan Trust           Wells Fargo Mortgage Backed Securities          
Series 2004-12 Class 2A           Trust          
2.772% due 09/25/34 (Ê) 4,819 4,740 Series 2004-CC Class A1          
Series 2004-18 Class 5A           2.840% due 01/25/35 (Ê) 522 525
2.915% due 12/25/34 64 62 Series 2005-AR7 Class 2A1          
Structured Asset Mortgage Investments           3.087% due 05/25/35 (Ê) 1,204 1,190
II Trust           Series 2005-AR8 Class 1A1          
Series 2004-AR7 Class A1B                  
        2.947% due 06/25/35 (Ê)     3,678 3,724
0.832% due 04/19/35 (Ê)     594 556 Series 2006-2 Class 2A3          
Series 2004-AR8 Class A1                  
        5.500% due 03/25/36     498 493
0.844% due 05/19/35 (Ê)     1,927 1,843 Series 2006-6 Class 1A8          
Towd Point Mortgage Trust                  
Series 2015-2 Class 2A1           5.750% due 05/25/36     799 798
        Series 2006-8 Class A15          
3.750% due 11/25/57 (Þ)     2,474 2,554        
Series 2016-3 Class A1           6.000% due 07/25/36     1,581 1,597
        Series 2006-11 Class A9          
2.250% due 08/25/55 (Å)     3,810 3,808        
Wachovia Bank Commercial Mortgage           6.500% due 09/25/36     721 730
Trust           Series 2006-13 Class A5          
Series 2007-C30 Class A5           6.000% due 10/25/36 3,298 3,349
5.342% due 12/15/43 1,225 1,241 Series 2006-AR1 Class 2A5          
Series 2007-C30 Class AM           2.964% due 03/25/36 (Ê) 671 607
5.383% due 12/15/43 1,562 1,584 Series 2006-AR2 Class 2A1          
Series 2007-C33 Class AJ           2.843% due 03/25/36 724 711
6.150% due 02/15/51 5,100 5,053 Series 2006-AR10 Class 4A1          
            2.907% due 07/25/36 (Ê) 1,557 1,459

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 171

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
  Amount ($)   Value   Amount ($)   Value
    or Shares   $       or Shares   $
Series 2007-11 Class A81           Housing Financing Fund            
6.000% due 08/25/37   1,712 1,701 Series 2            
Series 2007-13 Class A7           3.750% due 04/15/34 ISK   360,004 2,533
6.000% due 09/25/37   339 341 Series 3            
WFRBS Commercial Mortgage Trust           3.750% due 06/15/44 ISK   775,000 5,072
Series 2012-C8 Class A1           Ireland Government Bond            
0.864% due 08/15/45   719 718 5.400% due 03/13/25 EUR   11,290 18,032
Series 2012-C8 Class A3           Malaysia Government Bond            
3.001% due 08/15/45   3,910 4,161 Series 0116            
Series 2012-C9 Class A1           3.800% due 08/17/23 MYR   35,800 9,011
0.673% due 11/15/45   206 205 Malaysia Government International Bond            
Series 2013-C14 Class A1           Series 0115            
0.836% due 06/15/46   964 962 3.955% due 09/15/25 MYR   1,680 430
Series 2014-C19 Class A3           Series 0215            
3.660% due 03/15/47   1,780 1,916 3.795% due 09/30/22 MYR   17,700 4,542
          1,358,276 Series 0311            
Municipal Bonds - 0.5%           4.392% due 04/15/26 MYR   11,660 2,914
Brazos Higher Education Authority           Series 0315            
Revenue Bonds           3.659% due 10/15/20 MYR   5,350 1,348
0.640% due 12/26/24 (Ê)   1,471 1,380 Series 0414            
City of New York New York General           3.654% due 10/31/19 MYR   8,170 2,053
Obligation Unlimited           Series 0416            
5.047% due 10/01/24   2,200 2,637 3.620% due 11/30/21 MYR   5,480 1,376
Series F1           Series 0515            
6.646% due 12/01/31   1,500 1,804 3.759% due 03/15/19 MYR   5,300 1,330
Municipal Electric Authority of Georgia                        
Revenue Bonds           Series 1/06            
          4.262% due 09/30/21 MYR   6,770 1,723
6.637% due 04/01/57     4,755 6,651              
          Mexican Bonos            
7.055% due 04/01/57     4,445 5,543 Series M 20            
New York City Water & Sewer System                        
Revenue Bonds           10.000% due 12/05/24 MXN   40,020 2,717
5.375% due 06/15/43   5,075 6,005 7.500% due 06/03/27 MXN   59,743 3,550
Puttable Floating Option Taxable Notes           Series M 30            
General Obligation Unlimited           10.000% due 11/20/36 MXN 116,580 8,777
0.690% due 08/01/49 (Ê)(Þ)   5,300 5,300 8.500% due 11/18/38 MXN   21,960 1,457
State of California General Obligation           Series M            
Unlimited                        
6.650% due 03/01/22   945 1,171 8.000% due 06/11/20 MXN   20,030 1,160
          30,491 6.500% due 06/09/22 MXN   41,650 2,307
Non-US Bonds - 5.4%           7.750% due 05/29/31 MXN   23,530 1,434
Australia Government Bond           7.750% due 11/13/42 MXN 328,480 20,485
Series 126           New Zealand Government Bond            
4.500% due 04/15/20 AUD 19,400 16,352 Series 0423            
Series 133           5.500% due 04/15/23 NZD   1,200 1,058
5.500% due 04/21/23 AUD 5,610 5,288 Series 0427            
Series 140           4.500% due 04/15/27 NZD   11,780 10,355
4.500% due 04/21/33 AUD 15,740 15,748 New Zealand Government International            
Brazil Notas do Tesouro Nacional           Bond            
Series NTNB           Series 0423            
6.000% due 05/15/45 BRL 1,821 1,696 5.500% due 04/15/23 NZD   2,090 1,843
Series NTNF           Series 0521            
10.000% due 01/01/21 BRL 9,470 2,765 6.000% due 05/15/21 NZD   34,965 29,979
10.000% due 01/01/23 BRL 44,421 12,722 Series 0925            
            2.000% due 09/20/25 NZD   6,020 4,735
10.000% due 01/01/25 BRL 26,750 7,578 Norway Government International Bond            
Colombian Titulos de Tesoreria           Series 473            
Series B           4.500% due 05/22/19 (Þ) NOK   66,350 8,742
10.000% due 07/24/24 COP 62,658,800 23,578 Series 477            

 

See accompanying notes which are an integral part of this quarterly report.

172 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
  Amount ($)   Value     Amount ($)   Value
      or Shares   $       or Shares   $
1.750% due 03/13/25 (Þ) NOK   26,290 3,332 1.375% due 05/31/21 110,020 111,842
Peru Government International Bond             1.125% due 06/30/21 11,735 11,785
5.700% due 08/12/24 PEN   31,130 9,397 1.125% due 07/31/21 44,510 44,701
6.900% due 08/12/37 PEN   36,787 11,850 1.750% due 09/30/22 47,955 49,491
Poland Government Bond                    
Series 0420             1.375% due 06/30/23     4,110 4,134
1.500% due 04/25/20 PLN   10,810 2,722 1.250% due 07/31/23 10,610 10,577
Series 0421             2.000% due 02/15/25 16,345 17,123
2.000% due 04/25/21 PLN   10,720 2,726 1.625% due 05/15/26 165,617 168,095
Series 0726             2.750% due 08/15/42 8,445 9,504
2.500% due 07/25/26 PLN   34,690 8,616        
 QueenslandTreasury Corp.             3.750% due 11/15/43     5,550 7,465
    Series 21             3.000% due 05/15/45 18,560 21,808
5.500% due 06/21/21 AUD   11,266 9,996 2.500% due 02/15/46 90,930 96,979
Russian Federal Bond - OFZ             2.500% due 05/15/46 83,235 88,967
Series 6219                       962,814
7.750% due 09/16/26 RUB 293,970 4,261 Total Long-Term Investments          
Singapore Government International                        
Bond             (cost $4,380,567)         4,479,687
2.000% due 07/01/20 SGD   2,480 1,904            
3.125% due 09/01/22 SGD   3,830 3,125 Common Stocks - 0.0%          
              Financial Services - 0.0%          
3.000% due 09/01/24 SGD   4,150 3,390 Escrow GM Corp.(Å) 420,000 —
2.375% due 06/01/25 SGD   2,730 2,135 Total Common Stocks          
South Africa Government International             (cost $—)         —
Bond                        
Series R186                        
10.500% due 12/21/26 ZAR   42,200 3,422 Preferred Stocks - 0.1%          
Series R203             Financial Services - 0.1%          
8.250% due 09/15/17 ZAR   53,490 3,883 State Street Corp. 115,000 3,182
Series R209             XLIT, Ltd. 3,685 2,875
6.250% due 03/31/36 ZAR   43,780 2,301           6,057
Series R214             Technology - 0.0%          
6.500% due 02/28/41 ZAR 175,700 9,178 Verizon Communications, Inc. 41,164 1,145
Titulos De Tesoreria B Bonds                        
Series B             Total Preferred Stocks          
6.000% due 04/28/28 COP   8,726,200 2,472 (cost $6,981)         7,202
            319,400            
United States Government Treasuries - 16.4%                
United States Treasury Inflation Indexed             Options Purchased - 0.0%          
Bonds             (Number of Contracts)          
0.125% due 07/15/24     6,768 6,860 Cross Currency Option          
 
0.250% due 01/15/25     6,105 6,230 (USD/GBP)      
            Aug 2016 1.31 Call (1)   17,487 (ÿ) 59
0.375% due 07/15/25       907 939        
            Oct 2016 1.30 Call (1)   17,420 (ÿ) 143
0.625% due 01/15/26       10,008 10,574        
            Oct 2016 1.30 Call (1)   17,420 (ÿ) 141
1.375% due 02/15/44       12,961 15,508        
            Aug 2016 1.31 Put (1)   17,487 (ÿ) 59
1.000% due 02/15/46       10,807 12,116 United States 5 Year          
United States Treasury Notes             Treasury Note Futures          
0.875% due 03/31/18     33,610 33,726 Aug 2016 121.75 Call (51) 6,209 (ÿ) 27
0.875% due 05/31/18     8,800 8,833 Aug 2016 174.50 Call (24) 4,188 (ÿ) 46
0.625% due 06/30/18     4,730 4,727 United States 10 Year          
 
0.875% due 04/15/19     40,715 40,860 Treasury Note Futures      
            Aug 2016 132.50 Call (87)   11,528 (ÿ) 86
0.750% due 07/15/19       3,600 3,599        
            Aug 2016 133.00 Call (123)   16,359 (ÿ) 86
1.375% due 09/30/20       173,045 175,985        
            Aug 2016 133.50 Call (38)   5,073 (ÿ) 18
1.375% due 04/30/21       380 386            

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 173

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
        Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
        or Shares   $     or Shares   $
United States Treasury                    
              1.040% due 03/27/17 (Å)(Ê)     9,785 9,773
Bond Futures                        
 
Aug 2016 174.00 Call (57)   9,918 (ÿ) 125 Canadian Imperial Bank of Commerce      
 Total Options Purchased             0.829% due 02/21/17 (Ê)     17,485 17,472
 
(cost $986)           790 0.956% due 06/02/17 (Ê)(~) 2,000 1,998
              Chariot Funding LLC          
Short-Term Investments - 25.7%             1.000% due 03/31/17 (Þ)(~) 10,000 9,917
              Coca-Cola European Partners US LLC          
ABN Amro Bank NV                    
          2.000% due 08/19/16     858 858
1.543% due 10/28/16 (Å)(Ê)       2,320 2,323 Commonwealth Bank of Australia          
American Express Credit Corp.                    
          0.937% due 03/09/17 (Ê)(Þ)(~)     13,200 13,195
2.800% due 09/19/16       12,000 12,032  ConocoPhillips Canada Funding Co. I          
 
1.125% due 06/05/17   5,415 5,422    5.625% due 10/15/16 760 767
American Honda Finance Corp.             Cooperatieve Rabobank UA          
0.843% due 07/14/17 (Ê)   9,375 9,377 0.884% due 03/09/17 (Ê)(~) 7,590 7,582
Anheuser-Busch InBev Finance, Inc.                    
          1.073% due 04/28/17 (Ê)     10,100 10,105
0.924% due 01/27/17 (Ê)       6,215 6,209 CRC Funding LLC          
Anheuser-Busch InBev Worldwide, Inc.                    
          1.000% due 01/05/17 (Þ)(~)     9,000 8,963
Zero coupon due 12/09/16 (Þ)(~)       2,630 2,623  Credit Agricole  SA          
 
1.051% due 12/30/16 (Þ)(~)   722 720     0.410%  due 08/02/16(ç)(~) 1,750 1,750
1.212% due 04/21/17 (Þ)(~)   2,605 2,585 0.570% due 09/09/16 (ç)(~) 6,000 5,996
1.574% due 06/08/17 (Þ)(~)   800 793 Credit Suisse          
Antalis SA             Series GMTN          
0.540% due 08/08/16 (ç)(Þ)(~)   700 700 1.155% due 05/26/17 (Ê) 2,050 2,050
          Deutsche Telekom International Finance        
0.560% due 08/19/16 (ç)(Þ)(~)       500 500            
              BV          
 
AT&T, Inc.         2.250% due 03/06/17 (Þ) 6,160 6,199
1.600% due 02/15/17       1,895 1,900            
          DNB Bank ASA          
1.051% due 03/30/17 (Ê)       4,600 4,603 Series YCD          
1.700% due 06/01/17   4,815 4,836 0.997% due 06/09/17 (Ê)(~) 7,590 7,584
Bank of America Corp.             eBay, Inc.          
5.700% due 05/02/17   550 567 1.350% due 07/15/17 4,085 4,090
Bank of America NA             0.943% due 07/28/17 (Ê) 6,190 6,162
Series BKNT                        
5.300% due 03/15/17   7,515 7,706 ENI Finance USA, Inc.      
          0.760% due 08/01/16 (ç)(Þ)(~)     10,150 10,150
1.130% due 06/05/17 (Ê)       3,935 3,939 Exxon Mobil Corp.          
0.953% due 06/15/17 (Ê)   4,175 4,163 0.693% due 03/15/17 (Ê) 10,750 10,746
6.100% due 06/15/17   2,000 2,082 FCA US LLC Term Loan B          
Bank of Montreal IL             3.500% due 05/24/17 (Ê) 2,316 2,318
Series YCd             Federal Home Loan Banks          
0.896% due 01/03/17 (Ê)(~)   2,000 1,998 3.150% due 06/28/17 5,830 5,848
Bank of Nova Scotia             Federal Home Loan Mortgage Corp.          
1.115% due 04/25/17 (Ê)(~)   8,170 8,159 Multifamily Structured Pass-Through          
Bank of Tokyo-Mitsubishi UFJ, Ltd.             Certificates          
          Series 2012-K501 Class X1A          
0.420% due 08/04/16 (ç)(~)       8,700 8,700 Interest Only STRIP          
0.530% due 09/07/16 (ç)(~)   8,750 8,745 1.509% due 08/25/16 (ç) 15,087 1
Barton Capital SA             Freddie Mac          
1.000% due 08/08/16 (ç)(Þ)(~)   10,000 9,999 8.500% due 02/01/17 1 1
Bear Stearns Cos. LLC (The)             General Electric Co.          
5.550% due 01/22/17   3,681 3,756 0.837% due 12/29/16 (Ê) 2,470 2,469
BMW US Capital LLC                    
          0.796% due 02/15/17 (Ê)     4,995 4,997
1.026% due 06/02/17 (Ê)       11,200 11,193 General Mills, Inc.          
Brazil Notas do Tesouro Nacional                    
Series NTNF             5.700% due 02/15/17     2,031 2,081
              Ginnie Mae I          
10.000% due 01/01/17 BRL 5,000 1,530        
Caisse Centrale Desjardins             7.000% due 11/15/16     —   —

 

See accompanying notes which are an integral part of this quarterly report.

174 Russell Strategic Bond Fund

 

Russell Investment Company                
 
Russell Strategic Bond Fund                
 
 
Schedule of Investments, continued — July 31, 2016 (Unaudited)          
 
Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Gotham Funding Corp.           1.056% due 06/13/17 (Ê)(~) 9,485 9,482
Zero coupon due 08/22/16 (ç)(Þ)(~)   7,250 7,248 Ontario Teachers' Finance Trust          
Intesa Sanpaolo SpA           Zero coupon due 12/02/16 (Þ)(~) 2,100 2,094
2.375% due 01/13/17   2,570 2,576 1.000% due 01/03/17 (Þ)(~) 3,000 2,987
Japan Treasury Discount Bill                  
Series 604           Zero coupon due 01/17/17 (Þ)(~)     1,750 1,742
          PACCAR Financial Corp.          
   Zero coupon due 08/01/16 JPY 570,000 5,586 0.870% due 06/06/17 (Ê) 2,500 2,503
   Series 605           Pfizer, Inc.          
 Zero coupon  due 08/08/16 (~) JPY 560,000 5,489 0.512% due 05/15/17 (Ê) 7,095 7,101
 Series 611           Procter & Gamble Co. (The)          
 Zero coupon due 09/05/16 JPY   1,280,000 12,547 1.450% due 08/15/16 250 250
Zero coupon due 10/17/16 (~) JPY   1,220,000 11,963 0.717% due 11/04/16 (Ê) 4,265 4,266
JetBlue Airways Pass-Through Trust           Province of British Columbia Canada          
Series 04-2 Class G-2           1.200% due 04/25/17 1,895 1,902
0.812% due 11/15/16 (Ê)   4,039 4,029 Realty Income Corp.          
Johnson & Johnson           5.950% due 09/15/16 1,515 1,523
0.395% due 11/28/16 (Ê)   7,190 7,193 Royal Bank of Canada          
Jupiter Securitization Co. LLC           Series YCD          
0.460% due 09/02/16 (ç)(Þ)(~)   12,200 12,195 0.833% due 11/04/16 (Ê)(~) 2,000 2,001
Kellogg Co.           0.873% due 01/09/17 (Ê)(~) 4,000 3,999
1.875% due 11/17/16   6,300 6,317 Russell U.S. Cash Management Fund   694,518,914 (8)   694,519
Kraft Heinz Foods Co.           Sabine Pass LNG, LP          
1.600% due 06/30/17 (Þ)   1,740 1,747 7.500% due 11/30/16 385 391
Liberty Street Funding LLC           Series 144a          
1.000% due 10/11/16 (Þ)(~)   7,500 7,489 7.500% due 11/30/16 (Þ) 2,900 2,947
M&T Bank Corp.           Samsung Electronics America, Inc.          
6.875% due 06/15/16 (ƒ)   1,000 1,008 1.750% due 04/10/17 (Þ) 2,110 2,117
Manhattan Asset Funding Co. LLC           Sanofi          
0.010% due 08/24/16 (ç)(~)   7,129 7,126 0.561% due 10/14/16 (Þ)(~) 3,250 3,247
Manufacturers & Traders Trust Co.           Shell International Finance BV          
Series BKNT           0.836% due 11/15/16 (Ê) 14,210 14,217
1.400% due 07/25/17   5,600 5,614 Sinopec Group Overseas Development          
Matchpoint Finance PLC           2012, Ltd.          
0.581% due 09/02/16 (ç)(Þ)(~)   8,500 8,496 2.750% due 05/17/17 (Þ) 260 263
Mizuho Bank, Ltd.           Small Business Administration          
          Series 97-D Class 1          
0.450% due 08/15/16 (ç)(~)     9,000 9,000        
Morgan Stanley           7.500% due 04/01/17     31 32
          Starbird Funding Corp.          
5.550% due 04/27/17     2,450 2,530        
National Australia Bank, Ltd.           0.000% due 12/19/16 (Þ)(~)     7,000 6,974
          Sumitomo Mitsui Banking Corp.          
2.750% due 03/09/17     2,105 2,127            
0.911% due 06/30/17 (Ê)(Þ)   2,965 2,962 0.862% Series YCD due 12/19/16 (Ê)(~) 7,500 7,489
National Bank of Canada           Toronto-Dominion Bank (The)          
0.651% due 09/19/16 (ç)(Þ)(~)   300 300 Series GMTN          
1.061% due 05/24/17 (Ê)(~)   4,000 3,992 0.916% due 01/06/17 (Ê) 956 956
National City Bank           Total Capital International SA          
Series BKNT           1.000% due 08/12/16 10,485 10,486
1.052% due 06/07/17 (Ê)   3,075 3,073 1.550% due 06/28/17 5,110 5,135
Nestle Holdings, Inc.           Toyota Motor Credit Corp.          
1.375% due 06/21/17   1,000 1,003 0.816% due 02/16/17 (Ê) 1,520 1,521
Nieuw Amsterdam Receivable Corp.                  
          1.125% due 05/16/17     8,055 8,067
Zero coupon due 09/15/16 (ç)(Þ)(~)     4,000 3,997 UAL Pass-Through Trust          
Nomura Holdings Inc.           Series 09-1          
2.000% due 09/13/16   4,385 4,391 10.400% due 11/01/16 101 103
Nordea Bank Finland PLC           United States Treasury Bills          
Series YCD                      
            See accompanying notes which are an integral part of this quarterly report.
                Russell Strategic Bond Fund 175

 

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)      
    Principal   Fair  
    Amount ($)   Value  
    or Shares   $  
0.002% due 08/04/16 4,720 4,720  
0.004% due 08/04/16 26,240 26,240  
0.003% due 08/11/16 (ç)(~) 6,790 6,789  
0.004% due 08/18/16 (ç)(~) 14,930 14,927  
0.002% due 09/08/16 400 400  
0.002% due 09/15/16 (ç)(~) 355 355  
0.002% due 09/29/16 (~) 80 80  
0.003% due 10/06/16 (~) 25,215 25,204  
0.003% due 10/20/16 (~) 15,200 15,191  
0.003% due 10/27/16 41,230 41,204  
0.003% due 11/10/16 6,000 5,996  
0.004% due 01/05/17 13,060 13,041  
United States Treasury Notes          
0.375% due 10/31/16 35,690 35,699  
0.500% due 11/30/16 14,730 14,737  
Verizon Communications, Inc.          
1.057% due 06/09/17 (Ê) 7,041 7,051  
1.350% due 06/09/17 5,255 5,269  
Series FRN          
2.183% due 09/15/16 (Ê) 13,112 13,137  
Victory Receivables Corp.          
0.510% due 08/04/16 (ç)(Þ)(~) 10,000 10,000  
Vodafone Group PLC          
1.625% due 03/20/17 5,915 5,932  
Wachovia Corp.          
0.923% due 06/15/17 (Ê) 5,495 5,492  
Wells Fargo & Co.          
0.716% due 06/02/17 (Ê) 10,930 10,924  
Wells Fargo Bank NA          
Series CD          
1.080% due 04/13/17 (Ê)(~) 5,575 5,576  
1.058% due 06/12/17 (Ê)(~) 9,485 9,482  
Westpac Banking Corp.          
1.092% due 11/25/16 (Ê) 2,000 2,002  
Series YCD          
0.947% due 10/21/16 (Ê)(~) 1,300 1,301  
1.043% due 03/01/17 (Ê)(~) 9,295 9,297  
Williams Partners, LP / Williams          
Partners Finance Corp.          
7.250% due 02/01/17 1,480 1,516  
Total Short-Term Investments          
(cost $1,507,374)       1,510,106  
 
Total Investments 102.1%          
(identified cost $5,895,908)       5,997,785  
 
Other Assets and Liabilities,          
Net - (2.1%)       (125,557 )
 
Net Assets - 100.0%       5,872,228  

 

See accompanying notes which are an integral part of this quarterly report.

176 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                      
 
Amounts in thousands (except share and cost per unit amounts)                    
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities Date     or shares   $   $   $  
1.1%                      
ABN Amro Bank NV 10/23/13 2,320,000 100.00 2,320 2,323  
Banc of America Funding Corp. 07/14/16 9,142,586 51.04 4,666 4,677  
BCAP LLC Trust 07/21/16 6,930,000 71.76 4,973 4,973  
Bear Stearns Second Lien Trust 10/22/15 1,265,185 96.50 1,221 1,233  
Caisse Centrale Desjardins 05/07/15 9,785,000 100.10 9,795 9,773  
California Resources Corp. 07/11/16 110,000 73.88 81 71  
CIT Education Loan Trust 05/24/11 3,211,009 92.20 2,960 2,934  
Dryden 37 Senior Loan Fund 01/29/15 3,540,000 100.00 3,540 3,541  
Enterprise Fleet Financing LLC 07/12/16 1,675,000 99.97 1,675 1,675  
Escrow GM Corp. 04/21/11 420,000 — —   —  
Fannie Mae 10/27/00 15,645 22.96 4 4  
Fannie Mae 02/12/01 15,655 27.06 4 4  
Fannie Mae 08/14/02 7,005 27.11 2 2  
Fannie Mae 04/27/10 23,905 21.38 5 5  
Fannie Mae REMICS 09/15/00 23,420 20.30 5 5  
Fannie Mae REMICS 06/12/01 3,093 2.34 —   —  
Fannie Mae REMICS 04/02/03 301,066 17.40 52 52  
Fannie Mae REMICS 04/25/05 67,006 17.03 11 11  
Fannie Mae REMICS 04/25/05 32,124 20.62 7 7  
Fannie Mae REMICS 02/28/07 58,822 99.93 59 57  
Fannie Mae REMICS 08/17/07 567,973 99.17 563 557  
Fannie Mae REMICS 09/19/08 63,243 18.63 12 12  
Fannie Mae REMICS 09/19/08 105,461 20.52 23 23  
Freddie Mac REMICS 04/14/03 37,534 28.40 11 11  
Freddie Mac REMICS 06/11/03 9,806 16.31 2 2  
Freddie Mac REMICS 03/15/04 14,418 17.68 3 2  
Freddie Mac REMICS 09/19/08 430,253 17.65 76 76  
Freddie Mac REMICS 09/19/08 81,871 25.32 21 21  
Freddie Mac Strips 05/29/03 35,925 21.09 8 8  
Freddie Mac Strips 02/13/04 37,097 27.65 10 10  
Freddie Mac Strips 09/19/08 36,783 18.67 7 7  
Freddie Mac Strips 09/19/08 14,770 23.34 3 3  
Ginnie Mae 01/20/10 56,955 24.61 14 14  
GS Mortgage Securities Trust 07/20/16 1,630,000 113.23 1,846 1,867  
GSAA Trust 10/21/15 3,701,262 85.41 3,161 3,197  
Indiantown Cogeneration, LP 07/08/09 853,303 95.76 817 935  
Irwin Home Equity Loan Trust 02/03/16 3,377,201 102.41 3,459 3,420  
Irwin Home Equity Loan Trust 05/04/16 1,503,761 102.23 1,537 1,536  
Macquarie Bank, Ltd. 10/22/14 2,205,000 100.00 2,205 2,202  
Nomura Resecuritization Trust 07/22/16 5,270,000 56.01 2,952 2,921  
Nomura Resecurization Trust 07/20/16 7,731,544 42.51 3,287 3,590  
Purchasing Power Funding LLC 07/20/16 2,320,000 100.19 2,324 2,324  
SFR Group SA 04/06/16 2,370,000 100.00 2,370 2,367  
SFR Group SA 06/16/16 780,000 95.80 747 748  
Teachers Insurance & Annuity Association of America 06/14/16 100,000 114.72 115 114  
Tengizchevroil Finance Co. International, Ltd. 07/20/16 1,355,000 99.29 1,345 1,350  
Towd Point Mortgage Trust 07/22/16 3,810,000 99.86 3,804 3,808  
Waldorf Astoria Boca Raton Trust 07/12/16 4,000,000 100.00 4,000 4,010  
                    66,482  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.              

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 177

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
Australia 10 Year Treasury Bond Futures 2,448 AUD 336,219 09/16 4,781  
Eurodollar Futures 146 USD 20,443 09/16 116  
Japanese Yen Currency Futures 84 USD 10,310 09/16 223  
Long Gilt Futures 1,379 GBP 180,580 09/16 14,422  
United States 2 Year Treasury Note Futures 2,132 USD 466,908 09/16 1,070  
United States 5 Year Treasury Note Futures 3,372 USD 411,437 09/16 4,028  
United States 10 Year Treasury Note Futures 1,472 USD 195,845 09/16 2,815  
United States 10 Year Ultra Bond Futures 107 USD 15,644 09/16 526  
United States Long Bond Futures 1,545 USD 269,506 09/16 12,299  
United States Ultra Bond Futures 139 USD 26,484 09/16 2,252  
Short Positions                  
British Pound Index Futures 446 USD 36,926 09/16 (75 )
Canada 10 Year Government Bond Futures 700 CAD 103,936 09/16 152  
Canadian Dollar Currency Futures 176 USD 13,497 09/16 (181 )
Euro-Bobl Futures 329 EUR 43,977 09/16 (359 )
Euro-Bund Futures 1,232 EUR 206,742 09/16 (5,068 )
Eurodollar Futures 392 USD 97,182 12/16 9  
Euro-OAT Futures 161 EUR 26,106 09/16 (736 )
Japan 10 Year Treasury Bond Futures 152 JPY  23,195,200   09/16 (750 )
Long Gilt Futures 251 GBP 32,868 09/16 (1,992 )
United States 5 Year Treasury Note Futures 49 USD 5,979 09/16 (24 )
United States 10 Year Treasury Note Futures 912 USD 121,339 09/16 (1,203 )
United States 10 Year Ultra Bond Futures 96 USD 14,036 09/16 (45 )
United States Long Bond Futures 17 USD 2,965 09/16 (39 )
United States Ultra Bond Futures 38 USD 7,240 09/16 50  
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               32,271  

 

Options Written                  
Amounts in thousands (except contract amounts)                
    Number of Strike   Notional   Expiration Fair Value  
  Call/Put Contracts Price   Amount   Date $  
Cross Currency Options (USD/GBP) Call 1 1.24 USD 16,616 10/03/16 (30 )
Cross Currency Options (USD/GBP) Call 1 1.24 USD 16,616 10/05/16 (32 )
Total Liability for Options Written (premiums received $270)             (62 )

 

Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
  Number of     Premiums  
    Contracts     Received  
Outstanding October 31, 2015 1 $ 769
Opened 3 306
Closed (1 ) (769 )
Expired (1 ) (36 )
Outstanding July 31, 2016 2 $ 270

 

See accompanying notes which are an integral part of this quarterly report.

178 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD 468 BRL 1,548 08/19/16 6  
Bank of America USD 2,491 BRL 8,823 08/19/16 214  
Bank of America USD 6,731 BRL 24,194 08/19/16 687  
Bank of America USD 58 CZK 1,377 08/19/16 (1 )
Bank of America USD 6,037 CZK 145,210 08/19/16 (27 )
Bank of America USD 15,485 CZK 368,213 08/19/16 (246 )
Bank of America USD 245 INR 16,483 08/19/16 2  
Bank of America USD 2,656 INR 179,969 08/19/16 35  
Bank of America USD 6,815 INR 462,019 08/19/16 94  
Bank of America USD 68 KRW 77,321 08/19/16 1  
Bank of America USD 6,078 KRW 7,126,543 08/19/16 327  
Bank of America USD 15,399 KRW 18,133,717 08/19/16 899  
Bank of America USD 9,458 MXN 178,077 08/31/16 11  
Bank of America USD 225 PLN 870 08/19/16 (2 )
Bank of America USD 5,907 PLN 23,266 08/19/16 61  
Bank of America USD 15,872 PLN 61,346 08/19/16 (137 )
Bank of America USD 2,673 RUB 177,791 08/19/16 9  
Bank of America USD 6,822 RUB 451,725 08/19/16 (6 )
Bank of America USD 5,732 SGD 7,767 08/19/16 60  
Bank of America USD 2,484 TRY 7,377 08/19/16 (25 )
Bank of America USD 5,588 TRY 16,598 08/19/16 (55 )
Bank of America USD 6,965 TRY 21,128 08/19/16 78  
Bank of America USD 15,434 TRY 46,819 08/19/16 172  
Bank of America USD 2,589 ZAR 39,939 08/19/16 278  
Bank of America AUD 13,534 USD 10,103 08/31/16 (174 )
Bank of America BRL 688 USD 208 08/19/16 (3 )
Bank of America BRL 19,851 USD 5,604 08/19/16 (482 )
Bank of America BRL 54,437 USD 15,146 08/19/16 (1,544 )
Bank of America CZK 1,180 USD 50 08/19/16 1  
Bank of America CZK 64,538 USD 2,683 08/19/16 12  
Bank of America CZK 163,082 USD 6,858 08/19/16 109  
Bank of America HKD 20,481 USD 2,640 08/19/16 —  
Bank of America HUF 13,317 USD 48 08/19/16 —  
Bank of America HUF 724,582 USD 2,588 08/19/16 (17 )
Bank of America HUF 1,904,105 USD 6,850 08/19/16 6  
Bank of America IDR 3,756,369 USD 285 08/19/16 (1 )
Bank of America IDR 78,459,675 USD 5,814 08/19/16 (163 )
Bank of America IDR 207,378,411 USD 15,336 08/19/16 (461 )
Bank of America JPY 1,280,000 USD 11,807 09/06/16 (753 )
Bank of America JPY 1,220,000 USD 11,581 10/17/16 (410 )
Bank of America MXN 178,077 USD 9,486 08/02/16 (12 )
Bank of America MXN 123,763 USD 6,517 08/19/16 (72 )
Bank of America MXN 280,200 USD 15,244 08/19/16 327  
Bank of America PHP 51,020 USD 1,088 08/19/16 4  
Bank of America PHP 264,349 USD 5,681 08/19/16 64  
Bank of America PHP 727,657 USD 15,593 08/19/16 130  
Bank of America PLN 870 USD 225 08/19/16 2  
Bank of America PLN 1,015 USD 263 08/19/16 2  
Bank of America RUB 1,533 USD 24 08/19/16 1  
Bank of America SGD 3,452 USD 2,548 08/19/16 (27 )
Bank of America SGD 9,497 USD 6,927 08/19/16 (156 )
Bank of America TRY 665 USD 219 08/19/16 (2 )
Bank of America TRY 775 USD 256 08/19/16 (3 )
Bank of America TWD 5,788 USD 181 08/19/16 (1 )
Bank of America TWD 84,604 USD 2,613 08/19/16 (49 )
Bank of America TWD 225,561 USD 6,917 08/19/16 (181 )
Bank of Montreal USD 16,247 AUD 21,456 08/19/16 50  
Bank of Montreal USD 56,743 JPY 5,972,882 08/19/16 1,827  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 179

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of Montreal DKK 109,655 USD 16,325 08/19/16 (167 )
Bank of Montreal DKK 246,724 USD 36,730 08/19/16 (376 )
Barclays NZD 9,573 USD 6,986 08/10/16 81  
Citibank USD 3,350 ZAR 47,814 08/10/16 87  
Commonwealth Bank of Australia USD 36,761 CAD 47,816 08/19/16 (134 )
Commonwealth Bank of Australia USD 57,184 CAD 74,381 08/19/16 (209 )
Commonwealth Bank of Australia CHF 16,107 USD 16,409 08/19/16 (224 )
Commonwealth Bank of Australia CHF 36,241 USD 36,921 08/19/16 (502 )
Goldman Sachs USD 3,328 RUB 215,000 08/10/16 (80 )
Goldman Sachs RUB 215,000 USD 3,349 08/10/16 100  
Goldman Sachs ZAR 99,211 USD 6,888 08/10/16 (244 )
HSBC USD 27,064 CNY 180,192 08/04/16 40  
HSBC CNY 37,529 USD 5,700 08/04/16 55  
HSBC CNY 47,700 USD 7,112 08/04/16 (63 )
HSBC CNY 75,120 USD 11,400 08/04/16 100  
HSBC CNY 180,192 USD 26,977 10/20/16 (57 )
HSBC MXN 3,951 USD 209 08/31/16 (1 )
HSBC MXN 175,033 USD 9,273 08/31/16 (34 )
JPMorgan Chase USD 5,653 BRL 18,624 08/15/16 65  
JPMorgan Chase USD 3,763 CAD 4,970 10/14/16 45  
JPMorgan Chase USD 11,399 CAD 14,915 10/14/16 28  
JPMorgan Chase USD 1,738 COP 5,393,847 10/14/16 (7 )
JPMorgan Chase USD 4,151 GBP 3,030 08/15/16 (140 )
JPMorgan Chase USD 6,850 JPY 721,114 08/31/16 224  
JPMorgan Chase USD 8,611 MXN 163,403 10/14/16 38  
JPMorgan Chase USD 11,471 NOK 98,378 10/14/16 191  
JPMorgan Chase USD 25,574 NOK 218,273 10/14/16 300  
JPMorgan Chase USD 669 PEN 2,263 10/14/16 2  
JPMorgan Chase USD 2,632 PLN 10,451 10/14/16 45  
JPMorgan Chase USD 3,828 PLN 15,368 10/14/16 110  
JPMorgan Chase USD 3,124 TRY 9,702 10/14/16 69  
JPMorgan Chase USD 10,031 TRY 29,711 10/14/16 (252 )
JPMorgan Chase USD 7,017 ZAR 102,646 10/14/16 272  
JPMorgan Chase USD 7,296 ZAR 108,453 10/14/16 406  
JPMorgan Chase AUD 3,706 USD 2,720 08/15/16 (96 )
JPMorgan Chase AUD 4,335 USD 3,191 08/15/16 (102 )
JPMorgan Chase AUD 8,968 USD 6,733 08/15/16 (79 )
JPMorgan Chase AUD 12,288 USD 9,191 08/15/16 (143 )
JPMorgan Chase AUD 56,147 USD 41,638 08/15/16 (1,015 )
JPMorgan Chase BRL 13,781 USD 4,143 08/15/16 (88 )
JPMorgan Chase CHF 7,270 USD 7,354 10/14/16 (178 )
JPMorgan Chase CHF 21,729 USD 22,189 10/14/16 (321 )
JPMorgan Chase COP 54,024,581 USD 17,792 10/14/16 450  
JPMorgan Chase CZK 7,648 USD 313 10/14/16 (4 )
JPMorgan Chase CZK 10,208 USD 416 10/14/16 (8 )
JPMorgan Chase DKK 1,191 USD 176 08/15/16 (3 )
JPMorgan Chase EUR 216 USD 243 08/15/16 1  
JPMorgan Chase EUR 506 USD 572 08/15/16 6  
JPMorgan Chase EUR 650 USD 720 08/15/16 (7 )
JPMorgan Chase EUR 1,037 USD 1,140 08/15/16 (20 )
JPMorgan Chase EUR 1,315 USD 1,454 08/15/16 (17 )
JPMorgan Chase EUR 1,426 USD 1,603 08/15/16 8  
JPMorgan Chase EUR 4,057 USD 4,465 08/15/16 (73 )
JPMorgan Chase EUR 12,407 USD 14,078 08/15/16 200  
JPMorgan Chase GBP 197 USD 258 08/15/16 (2 )
JPMorgan Chase GBP 760 USD 983 08/15/16 (23 )
JPMorgan Chase GBP 1,275 USD 1,845 08/15/16 158  
JPMorgan Chase GBP 2,445 USD 3,228 08/15/16 (9 )

 

See accompanying notes which are an integral part of this quarterly report.

180 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
JPMorgan Chase HKD 926 USD 119 10/14/16 —  
JPMorgan Chase HKD 2,449 USD 316 10/14/16 —  
JPMorgan Chase JPY 570,000 USD 5,140 08/01/16 (447 )
JPMorgan Chase JPY 560,000 USD 5,137 08/08/16 (352 )
JPMorgan Chase JPY 20,000 USD 199 08/15/16 3  
JPMorgan Chase JPY 22,814 USD 215 08/15/16 (9 )
JPMorgan Chase JPY 30,603 USD 294 08/15/16 (6 )
JPMorgan Chase JPY 62,588 USD 598 08/15/16 (15 )
JPMorgan Chase JPY 155,344 USD 1,521 08/15/16 (2 )
JPMorgan Chase JPY 325,146 USD 3,160 08/31/16 (30 )
JPMorgan Chase JPY 380,603 USD 3,680 08/31/16 (54 )
JPMorgan Chase MXN 51,522 USD 2,751 10/14/16 24  
JPMorgan Chase MXN 160,000 USD 8,446 10/14/16 (22 )
JPMorgan Chase MYR 3,775 USD 926 10/14/16 (8 )
JPMorgan Chase MYR 15,069 USD 3,719 10/14/16 (12 )
JPMorgan Chase NOK 25,582 USD 2,982 10/14/16 (51 )
JPMorgan Chase NZD 5,403 USD 3,771 08/15/16 (129 )
JPMorgan Chase NZD 5,724 USD 4,009 08/15/16 (122 )
JPMorgan Chase NZD 13,092 USD 9,212 08/15/16 (237 )
JPMorgan Chase NZD 16,677 USD 11,737 08/15/16 (299 )
JPMorgan Chase NZD 78,595 USD 55,863 08/15/16 (863 )
JPMorgan Chase PEN 46,521 USD 13,991 10/14/16 211  
JPMorgan Chase PHP 156,262 USD 3,300 10/14/16 (12 )
JPMorgan Chase PHP 470,924 USD 9,942 10/14/16 (41 )
JPMorgan Chase PLN 5,308 USD 1,331 10/14/16 (28 )
JPMorgan Chase SGD 3,541 USD 2,606 10/14/16 (34 )
JPMorgan Chase SGD 10,023 USD 7,364 10/14/16 (108 )
JPMorgan Chase SGD 40,899 USD 30,277 10/14/16 (212 )
JPMorgan Chase THB 120,912 USD 3,451 09/12/16 (18 )
JPMorgan Chase THB 363,113 USD 10,313 09/12/16 (104 )
JPMorgan Chase ZAR 65,349 USD 4,497 10/14/16 (144 )
Royal Bank of Canada USD 15,906 NZD 22,435 08/19/16 283  
Royal Bank of Canada USD 55,672 NZD 78,524 08/19/16 992  
Royal Bank of Canada ILS 221,015 USD 57,314 08/19/16 (659 )
State Street USD 943 CZK 23,008 08/19/16 9  
State Street USD 36,715 EUR 33,170 08/19/16 392  
State Street USD 36,870 GBP 27,858 08/19/16 8  
State Street USD 2,418 PEN 8,094 08/02/16 (2 )
State Street USD 2,449 PEN 8,196 08/02/16 (2 )
State Street USD 1,036 PLN 4,137 08/19/16 25  
State Street USD 468 SGD 631 08/19/16 2  
State Street USD 15,606 SGD 21,368 08/19/16 330  
State Street USD 229 TRY 668 08/19/16 (7 )
State Street USD 516 TRY 1,503 08/19/16 (15 )
State Street USD 6,556 ZAR 104,122 08/19/16 920  
State Street CZK 10,226 USD 419 08/19/16 (4 )
State Street GBP 43,335 USD 57,354 08/19/16 (12 )
State Street HKD 1,914 USD 247 08/19/16 —  
State Street HKD 53,784 USD 6,934 08/19/16 1  
State Street HUF 134,391 USD 471 08/19/16 (12 )
State Street MXN 2,359 USD 127 08/19/16 1  
State Street NOK 310,020 USD 36,570 08/19/16 (177 )
State Street SEK 138,904 USD 16,237 08/19/16 (9 )
State Street SGD 281 USD 208 08/19/16 (1 )
State Street ZAR 2,091 USD 145 08/19/16 (5 )
Toronto Dominion Bank CNY 19,843 USD 3,000 08/04/16 15  
UBS TRY 72,200 USD 23,208 10/27/16 (486 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts           (2,672 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 181

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Total Return Swap Contracts (*)          
Amounts in thousands          
    Notional Termination Fair Value
Underlying Reference Entity Counterparty Amount Date $
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 20,364 04/28/17 363
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 20,365 04/28/17 128
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 5,091 04/28/17 32
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 63,000 06/30/17 394
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 28 06/30/17 175
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 69,099 10/31/16 432
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 78,535 09/30/16 492
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 95,272 10/31/16 596
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       2,612

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were all based
on 1 Month LIBOR rate plus a fee ranging to 0.10%.

Interest Rate Swap Contracts              
 
Amounts in thousands                  
              Termination Fair Value  
Counterparty Notional Amount Fund Receives Fund Pays   Date $  
Citigroup USD 7,680 Three Month LIBOR 2.714 %   08/15/42 (1,820 )
Citigroup USD 5,110 Three Month LIBOR 3.676 %   11/15/43 (2,334 )
JPMorgan Chase DKK 36,000 Six Month CIBOR 0.510 %   05/05/25 —  
JPMorgan Chase DKK 89,914 Six Month CIBOR 0.943 %   05/05/25 (581 )
JPMorgan Chase DKK 14,500 Six Month CIBOR 0.640 %   05/06/25 (38 )
JPMorgan Chase HKD 17,100 Three Month HIBOR 1.462 %   05/14/25 (21 )
JPMorgan Chase HKD 42,195 Three Month HIBOR 1.420 %   05/14/25 —  
JPMorgan Chase HKD 102,714 Three Month HIBOR 2.160 %   05/14/25 (900 )
JPMorgan Chase CZK 54,540 Six Month PRIBOR 0.490 %   06/19/25 (7 )
JPMorgan Chase CZK 133,000 Six Month PRIBOR 0.495 %   06/19/25 —  
JPMorgan Chase CZK 321,681 Six Month PRIBOR 1.280 %   06/19/25 (971 )
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $— (å)       (6,672 )

 

Credit Default Swap Contracts            
 
Amounts in thousands              
Credit Indices              
        Fund (Pays)/      
        Receives   Termination Fair Value
Reference Entity Counterparty Notional Amount Fixed Rate   Date $
CDX NA Index Goldman Sachs USD 14,000 1.000 % 06/20/21 174
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $110           174
I              

 

See accompanying notes which are an integral part of this quarterly report.

182 Russell Strategic Bond Fund

 

Russell Investment Company
Russell Strategic Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
            Fair Value                
                    Practical          
Portfolio Summary Level 1     Level 2   Level 3 Expedient (a)   Total  
Long-Term Investments                            
Asset-Backed Securities $ —     $ 467,462   $ — $ — $ 467,462  
Corporate Bonds and Notes   —     1,026,426     —   —   1,026,426  
International Debt   —       297,946     —   —   297,946  
Loan Agreements   —       16,872     —   —   16,872  
Mortgage-Backed Securities   —     1,345,733     12,543   —   1,358,276  
Municipal Bonds   —       30,491     —   —   30,491  
Non-US Bonds   —       316,867     2,533   —   319,400  
United States Government Treasuries   —       962,814     —   —   962,814  
Common Stocks —     —   — — —  
Preferred Stocks 7,202     —   — — 7,202  
Options Purchased 388     402   — — 790  
Short-Term Investments —     805,568   10,019 694,519 1,510,106  
Total Investments 7,590   5,270,581   25,095 694,519 5,997,785  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 42,743     —   — — 42,743  
Foreign Currency Exchange Contracts —     11,766   — — 11,766  
Total Return Swap Contracts —     2,612   — — 2,612  
Credit Default Swap Contracts —     174   — — 174  
Liabilities                            
Futures Contracts (10,472 )   —   — — (10,472 )
Options Written —     (62 ) — — (62 )
Foreign Currency Exchange Contracts (16 )   (14,422 ) — — (14,438 )
Interest Rate Swap Contracts —     (6,672 ) — — (6,672 )
Total Other Financial Instruments* $ 32,255     $ (6,604 ) $ — $ — $ 25,651  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Bond Fund 183

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments — July 31, 2016 (Unaudited)

             
 
Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
            Principal Fair
    Principal Fair     Amount ($) Value
    Amount ($) Value     or Shares $
    or Shares $        
        0.931% due 02/15/22 (Ê) 851 853
Long-Term Investments - 90.8%       Series 2016-A3 Class A3      
Asset-Backed Securities - 7.5%       1.340% due 04/15/22 1,139 1,139
American Express Credit Account       CarFinance Capital Auto Trust      
Master Trust       Series 2014-1A Class A      
Series 2014-2 Class A       1.460% due 12/17/18 (Þ) 82 82
1.260% due 01/15/20 1,100 1,103 Series 2015-1A Class A      
AmeriCredit Automobile Receivables       1.750% due 06/15/21 (Þ) 372 371
Trust       CarMax Auto Owner Trust      
Series 2015-4 Class A2B       Series 2015-2 Class A4      
1.250% due 04/08/19 (Ê) 421 422 1.800% due 03/15/21 411 415
Series 2015-4 Class A3       Series 2016-2 Class A3      
1.700% due 07/08/20 119 120 1.520% due 02/16/21 1,170 1,177
Series 2016-1 Class A2B       Series 2016-3 Class A2      
1.175% due 06/10/19 (Ê) 841 842 1.170% due 08/15/19 1,996 1,995
Series 2016-1 Class C       CCG Receivables Trust      
2.890% due 01/10/22 300 308 Series 2014-1 Class A2      
Series 2016-2 Class B       1.060% due 11/15/21 (Þ) 257 256
2.210% due 05/10/21 103 104 Centex Home Equity Loan Trust      
Series 2016-2 Class C       Series 2003-B Class AF4      
2.870% due 11/08/21 305 312 3.735% due 02/25/32 2,224 2,232
Ameriquest Mortgage Securities,              
Inc. Asset-Backed Pass-Through       Series 2005-D Class M1      
        0.600% due 10/25/35 (Ê) 446 446
Certificates              
Series 2005-R5 Class M1       Chase Issuance Trust      
0.918% due 07/25/35 (Ê) 315 315 Series 2014-A6 Class A6      
        1.260% due 07/15/19 800 802
BA Credit Card Trust              
Series 2007-A1 Class A1       Series 2014-A8 Class A8      
5.170% due 06/15/19 2,300 2,345 0.436% due 11/15/18 (Ê) 600 600
        Series 2016-A2 Class A      
Series 2016-A1 Class A       1.370% due 06/15/21 1,095 1,099
0.848% due 10/15/21 (Ê) 639 640        
        Series 2016-A3 Class A3      
Bayview Financial Acquisition Trust       0.550% due 06/15/23 (Ê) 874 876
Series 2006-A Class 1A3              
5.865% due 02/28/41 143 157 Series 2016-A4 Class A4      
Bayview Opportunity Master Fund Trust       1.490% due 07/15/22 1,116 1,121
Series 2016-RPL3 Class A1       Chesapeake Funding LLC      
3.475% due 07/28/31 (Å) 123 123 Series 2014-1A Class C      
BMW Vehicle Owner Trust       1.628% due 03/07/26 (Ê)(Þ) 365 355
Series 2013-A Class A3       Citibank Credit Card Issuance Trust      
0.670% due 11/27/17 318 317 Series 2006-A7 Class A7      
Series 2016-A Class A3       0.301% due 12/17/18 (Ê) 2,060 2,060
1.160% due 11/25/20 411 411 Series 2008-A2 Class A2      
        1.570% due 01/23/20 (Ê) 600 608
Brazos Higher Education Authority, Inc.       CountryPlace Manufactured Housing      
Series 2011-2 Class A3       Contract Trust      
1.715% due 10/27/36 (Ê) 725 688        
California Republic Auto Receivables       Series 2005-1 Class A4      
Trust       5.200% due 12/15/35 (Þ) 675 702
Series 2014-2 Class A4       CPS Auto Receivables Trust      
1.570% due 12/16/19 481 482 Series 2013-C Class A      
Series 2015-2 Class A3       1.640% due 04/16/18 (Þ) 7 7
1.310% due 08/15/19 720 720 Series 2013-D Class A      
Series 2015-3 Class A3       1.540% due 07/16/18 (Þ) 42 42
1.620% due 11/15/19 445 446 Series 2014-A Class A      
Series 2016-1 Class A4       1.210% due 08/15/18 (Þ) 34 34
2.240% due 10/15/21 775 789 Series 2015-C Class A      
Capital Auto Receivables Asset Trust       1.770% due 06/17/19 (Þ) 361 361
Series 2013-1 Class B       Series 2016-B Class A      
1.290% due 04/20/18 602 602 2.070% due 11/15/19 (Þ) 584 586
Series 2016-1 Class A2A       Series 2016-C Class A      
1.500% due 11/20/18 505 506 1.620% due 01/15/20 (Å) 983 983
        Credit-Based Asset Servicing and      
Series 2016-1 Class A2B       Securitization LLC      
1.138% due 11/20/18 (Ê) 929 930 Series 2004-CB7 Class AF5      
Capital One Multi-Asset Execution Trust       4.866% due 10/25/34 237 244
Series 2016-A1 Class A1              

 

See accompanying notes which are an integral part of this quarterly report.

184 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
DRB Prime Student Loan Trust       Series 2016-A Class A4      
Series 2015-D Class A2       1.600% due 06/15/21 403 408
3.200% due 01/25/40 (Þ) 1,396 1,425 Series 2016-B Class A3      
Drive Auto Receivables Trust       1.330% due 10/15/20 547 549
Series 2015-DA Class A2A       GM Financial Automobile Leasing Trust      
1.230% due 06/15/18 (Þ) 88 88 Series 2015-3 Class A3      
Series 2016-AA Class A2A       1.690% due 03/20/19 620 624
1.500% due 03/15/18 (Þ) 251 251 Series 2016-2 Class A3      
Series 2016-BA Class A2       1.620% due 09/20/19 430 432
1.380% due 08/15/18 (Þ) 1,316 1,316 Higher Education Funding I      
DT Auto Owner Trust       Series 2014-1 Class A      
Series 2015-3A Class A       1.712% due 05/25/34 (Ê)(Þ) 655 619
1.660% due 03/15/19 (Þ) 334 334 Honda Auto Receivables Owner Trust      
Series 2016-3A Class A       Series 2013-4 Class A4      
1.750% due 11/15/19 (Þ) 735 735 1.040% due 02/18/20 500 500
Education Loan Asset-Backed Trust I       Series 2015-3 Class A2      
Series 2013-1 Class B1       0.920% due 11/20/17 416 416
1.439% due 11/25/33 (Ê)(Þ) 1,416 1,296 Series 2015-3 Class A4      
Enterprise Fleet Financing LLC       1.560% due 10/18/21 296 299
Series 2016-2 Class A3       Series 2015-4 Class A2      
2.040% due 02/22/22 (Å) 280 280 0.820% due 07/23/18 573 572
Exeter Automobile Receivables Trust       Series 2016-2 Class A2      
Series 2014-2A Class A       1.130% due 09/17/18 600 601
1.060% due 08/15/18 (Þ) 1 1 Series 2016-2 Class A3      
Series 2014-3A Class A       1.390% due 04/15/20 462 464
1.320% due 01/15/19 (Þ) 206 206 Hyundai Auto Receivables Trust      
Series 2016-1A Class A       Series 2013-C Class A3      
2.350% due 07/15/20 (Þ) 209 209 1.010% due 02/15/18 231 231
Fannie Mae Grantor Trust       Series 2014-A Class A3      
Series 2003-T4 Class 1A       0.790% due 07/16/18 282 281
0.390% due 09/26/33 (Ê) 105 104 Series 2015-B Class A2A      
Series 2003-T4 Class 2A5       0.690% due 04/16/18 500 500
5.045% due 09/26/33 646 733 JGWPT XXX LLC      
Fannie Mae Whole Loan       Series 2013-3A Class A      
Series 2003-W5 Class A       4.080% due 01/17/73 (Þ) 411 435
0.390% due 04/25/33 (Ê) 33 32 JGWPT XXXII LLC      
Series 2003-W9 Class A       Series 2014-2A Class A      
0.423% due 06/25/33 (Ê) 45 44 3.610% due 01/17/73 (Þ) 564 566
First Investors Auto Owner Trust       Mercedes-Benz Master Owner Trust      
Series 2013-3A Class A3       Series 2016-BA Class A      
1.440% due 10/15/19 (Þ) 25 25 1.785% due 05/17/21 (Ê)(Þ) 504 506
Flagship Credit Auto Trust       Morgan Stanley ABS Capital I, Inc. Trust      
Series 2014-1 Class A       Series 2003-NC6 Class M1      
1.210% due 04/15/19 (Þ) 71 71 1.387% due 06/25/33 (Ê) 208 202
Series 2014-2 Class A       Series 2003-NC7 Class M1      
1.430% due 12/16/19 (Þ) 21 20 1.237% due 06/25/33 (Ê) 176 166
Series 2015-2 Class A       Navient Student Loan Trust      
1.980% due 10/15/20 (Þ) 334 334 Series 2014-2 Class A      
Series 2015-3 Class A       1.128% due 03/25/83 (Ê) 1,256 1,213
2.380% due 10/15/20 (Þ) 111 112 Series 2014-3 Class A      
Series 2016-2 Class A1       1.108% due 03/25/83 (Ê) 1,643 1,586
2.280% due 05/15/20 257 258 Nelnet Student Loan Trust      
Ford Credit Auto Owner Trust       Series 2014-4A Class A2      
Series 2013-C Class A3       1.403% due 11/25/43 (Ê)(Þ) 725 667
0.820% due 12/15/17 67 67 Series 2015-2A Class A2      
Series 2014-A Class A3       1.088% due 09/25/42 (Ê)(Þ) 1,317 1,270
0.790% due 05/15/18 557 557 Nissan Auto Receivables Owner Trust      
Series 2015-B Class A4       Series 2013-C Class A3      
1.580% due 08/15/20 671 675 0.670% due 08/15/18 171 171
Series 2015-C Class A4       Series 2014-A Class A3      
1.740% due 02/15/21 421 425 0.720% due 08/15/18 133 133
Series 2016-2 Class A       Series 2016-A Class A2A      
2.030% due 12/15/27 (Þ) 657 663 1.060% due 02/15/19 500 500

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 185

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
NYMT Residential LLC       0.875% due 01/25/41 (Ê) 950 835
Series 2016-RP1A Class A       Series 2007-6 Class B      
4.000% due 03/25/21 (Þ) 145 145 1.565% due 04/27/43 (Ê) 127 106
Oak Hill Advisors Residential Loan       Series 2007-7 Class B      
Trust       0.984% due 10/25/28 (Ê) 320 256
Series 2015-NPL2 Class A1       Series 2007-8 Class B      
3.721% due 07/25/55 (Þ) 247 246 1.234% due 04/27/43 (Ê) 256 216
Park Place Securities, Inc.       Series 2008-2 Class B      
Series 2005-WCH1 Class M2       1.915% due 01/25/83 (Ê) 160 139
1.268% due 01/25/36 (Ê) 416 414 Series 2008-3 Class B      
Prestige Auto Receivables Trust       1.915% due 04/26/83 (Ê) 160 136
Series 2014-1A Class A3       Series 2008-4 Class B      
1.520% due 04/15/20 (Þ) 835 835 2.565% due 04/25/29 (Ê) 160 144
RAMP Trust       Series 2008-5 Class B      
Series 2003-RS2 Class AII       2.565% due 07/25/29 (Ê) 230 208
0.850% due 03/25/33 (Ê) 39 35 Series 2008-6 Class B      
Series 2003-RS11 Class AI6A       2.565% due 07/26/83 (Ê) 160 151
5.980% due 12/25/33 143 155 Series 2008-7 Class B      
RASC Trust       2.565% due 07/26/83 (Ê) 160 147
Series 2001-KS3 Class AII              
0.647% due 09/25/31 (Ê) 20 19 Series 2008-8 Class B      
        2.965% due 10/25/29 (Ê) 160 154
Series 2003-KS4 Class AIIB              
0.767% due 06/25/33 (Ê) 80 64 Series 2008-9 Class B      
        2.965% due 10/25/83 (Ê) 230 219
Renaissance Home Equity Loan Trust              
Series 2005-2 Class AF4       SoFi Professional Loan Program LLC      
4.934% due 08/25/35 585 587 Series 2014-B Class A2      
        2.550% due 08/27/29 (Þ) 692 698
Series 2006-1 Class AF6              
5.746% due 05/25/36 191 125 Series 2016-B Class A2B      
        2.740% due 10/25/32 (Þ) 1,550 1,578
Santander Drive Auto Receivables Trust       Specialty Underwriting & Residential      
Series 2014-1 Class B       Finance Trust      
1.590% due 10/15/18 312 312 Series 2003-BC1 Class A      
Series 2014-4 Class B       0.850% due 01/25/34 (Ê) 25 23
1.820% due 05/15/19 758 760 Toyota Auto Receivables Owner Trust      
Series 2015-2 Class B       Series 2014-A Class A3      
1.830% due 01/15/20 368 369 0.670% due 12/15/17 238 238
Series 2015-3 Class B       Series 2015-B Class A2B      
2.290% due 03/16/20 354 356 0.691% due 11/15/17 (Ê) 487 487
Series 2015-4 Class A2A       United Auto Credit Securitization Trust      
1.200% due 12/17/18 358 358 Series 2016-1 Class A      
Series 2015-4 Class A3       2.000% due 10/16/17 (Þ) 141 141
1.580% due 09/16/19 585 587 Vericrest Opportunity Loan Trust      
Series 2015-5 Class A2B       Series 2015-NP12 Class A1      
0.947% due 11/15/18 (Ê) 63 63 3.875% due 09/25/45 (Þ) 165 165
Series 2016-1 Class B       Series 2015-NPL2 Class A1      
2.470% due 12/15/20 254 257 3.500% due 02/25/55 (Þ) 296 294
Series 2016-2 Class B       Series 2015-NPL4 Class A1      
2.080% due 02/16/21 467 469 3.500% due 02/25/55 (Þ) 158 158
Series 2016-2 Class C       Verizon Owner Trust      
2.660% due 11/15/21 98 99 Series 2016-1A Class A      
Series 2016-2 Class D       1.420% due 01/20/21 (Å) 199 199
3.390% due 04/15/22 82 83 VOLT XLV LLC      
Saxon Asset Securities Trust       Series 2016-NPL5 Class A1      
Series 2004-1 Class A       4.000% due 05/25/46 (Þ) 349 350
0.695% due 03/25/35 (Ê) 57 52 VOLT XLVIII LLC      
SLM Private Education Loan Trust       Series 2016-NPL8 Class A1      
Series 2010-A Class 2A       3.500% due 07/25/46 (Å) 100 100
3.683% due 05/16/44 (Ê)(Þ) 2,029 2,094 World Omni Auto Receivables Trust      
SLM Student Loan Trust       Series 2014-B Class A4      
Series 2005-8 Class A4       1.680% due 12/15/20 383 385
0.984% due 01/25/28 (Ê) 1,660 1,651       74,825
Series 2006-2 Class A6       Corporate Bonds and Notes - 24.3%    
0.885% due 01/25/41 (Ê) 950 863 21st Century Fox America, Inc.      
Series 2006-8 Class A6       6.150% due 02/15/41 810 1,065

 

See accompanying notes which are an integral part of this quarterly report.

186 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
8.250% due 10/17/96 65 95 4.375% due 05/13/45 878 959
3M Co.       4.650% due 02/23/46 815 930
3.875% due 06/15/44 200 227 Assurant, Inc.      
AbbVie, Inc.       2.500% due 03/15/18 780 790
1.800% due 05/14/18 604 609 AT&T, Inc.      
2.500% due 05/14/20 800 821 1.577% due 11/27/18 (Ê) 175 176
3.600% due 05/14/25 400 424 3.000% due 06/30/22 2,150 2,230
3.200% due 05/14/26 960 985 3.600% due 02/17/23 1,470 1,561
4.500% due 05/14/35 402 434 4.500% due 05/15/35 2,010 2,122
4.700% due 05/14/45 100 110 5.550% due 08/15/41 307 359
Aetna, Inc.       4.300% due 12/15/42 169 168
1.900% due 06/07/19 580 588 4.750% due 05/15/46 1,193 1,263
2.800% due 06/15/23 445 458 5.650% due 02/15/47 80 95
3.200% due 06/15/26 605 620 Series WI      
4.375% due 06/15/46 683 711 5.150% due 03/15/42 49 55
Allstate Corp. (The)       AutoNation, Inc.      
5.750% due 08/15/53 980 1,029 4.500% due 10/01/25 775 829
Altria Group, Inc.       AvalonBay Communities, Inc.      
10.200% due 02/06/39 579 1,080 Series GMTN      
5.375% due 01/31/44 253 332 2.950% due 05/11/26 516 525
Amazon.com, Inc.       Bank of America Corp.      
4.950% due 12/05/44 295 370 2.000% due 01/11/18 1,170 1,178
American Airlines Pass Through Trust       4.200% due 08/26/24 95 100
Series 2016-2 Class AA       3.875% due 08/01/25 575 617
3.200% due 06/15/28 710 742 4.875% due 04/01/44 254 297
American Airlines Pass-Through Trust       Series GMTN      
Series 2013-2 Class A       2.625% due 04/19/21 1,355 1,381
4.950% due 01/15/23 999 1,094 4.450% due 03/03/26 210 225
American Express Co.       3.500% due 04/19/26 1,586 1,656
3.625% due 12/05/24 460 480 Bank of America NA      
American Honda Finance Corp.       Series BKNT      
2.250% due 08/15/19 485 500 2.050% due 12/07/18 112 114
American International Group, Inc.       6.000% due 10/15/36 560 729
3.900% due 04/01/26 351 368 Bank of Montreal      
4.800% due 07/10/45 152 161 Series YCD      
8.175% due 05/15/58 160 208 1.211% due 12/08/17 (Ê)(~) 600 600
Amgen, Inc.       Bank of New York Mellon Corp. (The)      
4.400% due 05/01/45 200 218 Series G      
4.663% due 06/15/51 (Þ) 585 629 2.200% due 05/15/19 480 492
Anadarko Petroleum Corp.       Barrick NA Finance LLC      
6.950% due 06/15/19 115 127 4.400% due 05/30/21 606 663
4.850% due 03/15/21 96 102 5.750% due 05/01/43 245 285
6.450% due 09/15/36 482 538 Baylor Scott & White Holdings      
4.500% due 07/15/44 378 332 4.185% due 11/15/45 460 520
6.600% due 03/15/46 144 166 Bear Stearns Cos. LLC (The)      
Anheuser-Busch InBev Finance, Inc.       7.250% due 02/01/18 425 462
1.157% due 02/01/19 (Ê) 400 399 Bellsouth Capital Funding Corp.      
2.650% due 02/01/21 927 960 7.875% due 02/15/30 635 821
3.650% due 02/01/26 2,639 2,834 Berkshire Hathaway Energy Co.      
4.700% due 02/01/36 1,290 1,495 5.150% due 11/15/43 278 348
4.900% due 02/01/46 779 949 Berkshire Hathaway Finance Corp.      
Anheuser-Busch InBev Worldwide, Inc.       1.450% due 03/07/18 485 489
8.200% due 01/15/39 193 314 4.400% due 05/15/42 400 466
Anthem, Inc.       Berkshire Hathaway, Inc.      
3.125% due 05/15/22 725 756 2.750% due 03/15/23 327 341
Apache Corp.       3.125% due 03/15/26 889 946
5.100% due 09/01/40 192 195 Biogen, Inc.      
Apollo Management Holdings, LP       5.200% due 09/15/45 415 497
4.000% due 05/30/24 (Þ) 290 299 Boston Properties, LP      
4.400% due 05/27/26 (Þ) 495 518 5.625% due 11/15/20 400 459
Apple, Inc.       3.650% due 02/01/26 660 713
1.009% due 05/03/18 (Ê) 1,875 1,879 Brixmor Operating Partnership, LP      

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 187

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
4.125% due 06/15/26 477 494 Columbia Property Trust Operating      
Burlington Northern and Santa Fe       Partnership, LP      
Railway Co. Pass-Through Trust       4.150% due 04/01/25 230 238
Series 2005-4       Comcast Corp.      
4.967% due 04/01/23 93 100 1.625% due 01/15/22 545 545
Burlington Northern Santa Fe LLC       4.250% due 01/15/33 533 599
6.875% due 12/01/27 90 127 4.200% due 08/15/34 529 589
4.900% due 04/01/44 125 156 4.500% due 01/15/43 237 275
Capital One Financial Corp.       Commonwealth Edison Co.      
2.450% due 04/24/19 350 358 5.800% due 03/15/18 315 338
3.750% due 07/28/26 520 523 ConocoPhillips Co.      
Capital One NA       5.950% due 03/15/46 254 306
Series BKNT       Continental Airlines Pass-Through Trust      
1.650% due 02/05/18 682 684 Series 071A Class A      
Cardinal Health, Inc.       5.983% due 04/19/22 1,274 1,453
1.950% due 06/15/18 1,070 1,082 Corporate Office Properties, LP      
Cargill, Inc.       3.700% due 06/15/21 815 847
6.000% due 11/27/17 (Þ) 1,200 1,276 Credit Suisse AG      
CBS Corp.       1.750% due 01/29/18 910 911
7.875% due 07/30/30 151 215 Crown Castle Towers LLC      
4.600% due 01/15/45 460 482 3.222% due 05/15/22 (Þ) 760 789
Celgene Corp.       CVS Health Corp.      
2.875% due 08/15/20 745 774 3.875% due 07/20/25 674 749
5.000% due 08/15/45 699 814 5.125% due 07/20/45 910 1,157
CenterPoint Energy Resources Corp.       Delta Air Lines Pass-Through Trust      
6.125% due 11/01/17 125 132 Series 2010-1 Class A      
Charter Communications Operating LLC       6.200% due 07/02/18 192 207
/ Charter Communications Operating       Devon Energy Corp.      
Capital       5.850% due 12/15/25 467 513
3.579% due 07/23/20 (Þ) 471 496 Diamond 1 Finance Corp. / Diamond 2      
4.464% due 07/23/22 (Þ) 1,440 1,563 Finance Corp      
4.908% due 07/23/25 (Þ) 540 596 4.420% due 06/15/21 (Þ) 540 564
6.384% due 10/23/35 (Þ) 1,045 1,230 5.450% due 06/15/23 (Þ) 3,140 3,326
6.484% due 10/23/45 (Þ) 200 240 Discover Bank      
Chevron Corp.       2.000% due 02/21/18 750 753
1.126% due 05/16/18 (Ê) 1,000 1,001 Dominion Gas Holdings LLC      
2.100% due 05/16/21 625 639 2.500% due 12/15/19 135 138
2.411% due 03/03/22 555 570 4.600% due 12/15/44 39 43
2.954% due 05/16/26 355 367 Dominion Resources, Inc.      
Chevron Phillips Chemical Co. LLC /       2.962% due 07/01/19 211 217
Chevron Phillips Chemical Co, LP       4.104% due 04/01/21 67 71
1.700% due 05/01/18 (Þ) 114 114 Dow Chemical Co. (The)      
Chubb INA Holdings, Inc.       4.375% due 11/15/42 230 237
2.300% due 11/03/20 355 367 DTE Energy Co.      
2.875% due 11/03/22 410 432 Series WI      
Cigna Corp.       3.300% due 06/15/22 597 632
5.375% due 02/15/42 218 268 Duke Energy Carolinas LLC      
Citigroup, Inc.       4.250% due 12/15/41 500 575
1.800% due 02/05/18 500 502 Duke Energy Corp.      
2.500% due 09/26/18 940 958 4.800% due 12/15/45 202 243
2.700% due 03/30/21 671 683 Duke Energy Progress LLC      
3.875% due 03/26/25 415 430 3.000% due 09/15/21 690 738
4.600% due 03/09/26 435 468 4.200% due 08/15/45 270 308
4.450% due 09/29/27 475 498 Eastman Chemical Co.      
4.125% due 07/25/28 653 666 4.650% due 10/15/44 177 186
5.875% due 01/30/42 304 397 eBay, Inc.      
4.650% due 07/30/45 585 660 1.237% due 08/01/19 (Ê) 775 767
        EI du Pont de Nemours & Co.      
City of Hope       4.150% due 02/15/43 206 217
Series 2013              
5.623% due 11/15/43 215 285 Emera US Finance, LP      
        3.550% due 06/15/26 (Þ) 445 467
Cleveland Clinic Foundation (The)       4.750% due 06/15/46 (Þ) 325 358
4.858% due 01/01/14 129 148        
        Enbridge Energy Partners, LP      

 

See accompanying notes which are an integral part of this quarterly report.

188 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
5.875% due 10/15/25 150 165 5.950% due 02/01/39 230 305
Energy Transfer Partners, LP       Georgia-Pacific LLC      
6.625% due 10/15/36 252 267 2.539% due 11/15/19 (Þ) 975 999
6.050% due 06/01/41 680 685 8.875% due 05/15/31 695 1,122
Entergy Texas, Inc.       Gilead Sciences, Inc.      
7.125% due 02/01/19 775 880 2.550% due 09/01/20 655 681
Enterprise Products Operating LLC       4.500% due 02/01/45 200 226
5.250% due 01/31/20 760 845 4.750% due 03/01/46 658 769
4.450% due 02/15/43 186 186 GlaxoSmithKline Capital, Inc.      
5.100% due 02/15/45 543 589 6.375% due 05/15/38 152 223
ERAC USA Finance LLC       Goldman Sachs Capital I      
2.350% due 10/15/19 (Þ) 675 687 6.345% due 02/15/34 1,190 1,440
Essex Portfolio, LP       Goldman Sachs Group, Inc. (The)      
5.200% due 03/15/21 655 735 6.150% due 04/01/18 500 538
Exelon Corp.       2.900% due 07/19/18 640 657
2.850% due 06/15/20 1,370 1,424 2.625% due 01/31/19 255 261
5.625% due 06/15/35 112 136 2.550% due 10/23/19 785 805
4.450% due 04/15/46 241 265 3.625% due 01/22/23 223 236
Express Scripts Holding Co.       3.850% due 07/08/24 470 505
3.000% due 07/15/23 920 936 4.250% due 10/21/25 610 644
4.800% due 07/15/46 975 1,039 3.750% due 02/25/26 420 444
Exxon Mobil Corp.       6.750% due 10/01/37 765 981
4.114% due 03/01/46 123 138 6.250% due 02/01/41 331 439
Farmers Exchange Capital       4.800% due 07/08/44 320 362
7.200% due 07/15/48 (Þ) 700 888 4.750% due 10/21/45 253 288
FedEx Corp.       Halliburton Co.      
4.750% due 11/15/45 175 205 5.000% due 11/15/45 200 216
Fifth Third Bank       HCP, Inc.      
Series BKNT       4.250% due 11/15/23 860 905
2.375% due 04/25/19 605 619 Hewlett Packard Enterprise Co.      
FirstEnergy Transmission LLC       2.450% due 10/05/17 (Þ) 1,260 1,275
5.450% due 07/15/44 (Þ) 256 291 4.400% due 10/15/22 (Þ) 1,021 1,104
Flatiron CLO, Ltd.       6.200% due 10/15/35 (Þ) 925 947
Series 2014-1A Class A1              
2.013% due 07/17/26 (Ê)(Þ) 400 398 6.350% due 10/15/45 (Þ) 141 142
Florida Power & Light Co.       Home Depot, Inc. (The)      
5.950% due 02/01/38 175 245 3.000% due 04/01/26 435 468
Ford Motor Credit Co. LLC       4.250% due 04/01/46 265 312
1.605% due 01/09/18 (Ê) 500 500 HP, Inc.      
3.336% due 03/18/21 410 428 3.750% due 12/01/20 141 149
3.096% due 05/04/23 610 622 Hyundai Capital America      
 Series FXD       2.450% due 06/15/21 (Þ) 788 800
2.145% due 01/09/18 200 202 Intel Corp.      
 General Electric Co.       4.800% due 10/01/41 245 289
    5.250% due 12/06/17 310 328 International Business Machines Corp.      
1.013% due 05/05/26 (Ê) 735 695 0.824% due 02/06/18 (Ê) 830 830
5.875% due 01/14/38 105 144 0.998% due 02/12/19 (Ê) 500 501
4.500% due 03/11/44 1,015 1,209 2.875% due 11/09/22 1,035 1,098
        ITC Holdings Corp.      
Series GMTN       5.300% due 07/01/43 265 319
3.100% due 01/09/23 685 732        
        Jersey Central Power & Light Co.      
6.150% due 08/07/37 192 271 4.700% due 04/01/24 (Þ) 400 441
6.875% due 01/10/39 169 260 4.300% due 01/15/26 (Þ) 389 417
General Mills, Inc.       6.400% due 05/15/36 383 469
5.650% due 02/15/19 695 773        
        John Deere Capital Corp.      
General Motors Co.       2.800% due 03/06/23 335 353
6.250% due 10/02/43 534 644        
        Johnson & Johnson      
General Motors Financial Co., Inc.       0.943% due 03/01/19 (Ê) 300 301
4.750% due 08/15/17 500 516        
2.400% due 05/09/19 835 839 3.700% due 03/01/46 336 389
        JPMorgan Chase & Co.      
3.200% due 07/13/20 1,200 1,223 1.615% due 01/25/18 (Ê) 400 403
3.200% due 07/06/21 955 969 2.250% due 01/23/20 1,536 1,566
Georgia Power Co.       2.400% due 06/07/21 492 501

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 189

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
3.875% due 09/10/24 905 954 Merck & Co., Inc.      
3.300% due 04/01/26 560 582 0.986% due 05/18/18 (Ê) 1,870 1,877
3.200% due 06/15/26 291 300 MetLife, Inc.      
2.950% due 10/01/26 566 572 10.750% due 08/01/39 800 1,280
4.125% due 12/15/26 205 220 4.875% due 11/13/43 348 392
4.250% due 10/01/27 275 296 Metropolitan Life Global Funding I      
JPMorgan Chase Bank NA       3.875% due 04/11/22 (Þ) 900 977
Series BKNT       Microsoft Corp.      
6.000% due 10/01/17 900 947 3.500% due 02/12/35 414 432
JPMorgan Chase Capital XXIII       3.750% due 02/12/45 450 466
1.626% due 05/15/47 (Ê) 1,495 1,147 MidAmerican Energy Co.      
KCP&L Greater Missouri Operations Co.       4.250% due 05/01/46 250 295
8.270% due 11/15/21 425 528 Molson Coors Brewing Co.      
Kinder Morgan Energy Partners, LP       3.000% due 07/15/26 480 490
6.950% due 01/15/38 187 213 4.200% due 07/15/46 225 237
5.500% due 03/01/44 170 174 Morgan Stanley      
Kinder Morgan, Inc.       2.125% due 04/25/18 705 712
3.050% due 12/01/19 300 308 3.125% due 07/27/26 1,032 1,039
5.300% due 12/01/34 536 539 6.375% due 07/24/42 238 329
5.550% due 06/01/45 290 291 Series F      
5.050% due 02/15/46 179 169 3.875% due 04/29/24 450 483
Series GMTN       Series GMTN      
7.800% due 08/01/31 201 239 5.500% due 07/24/20 535 604
KKR Group Finance Co. III LLC       2.500% due 04/21/21 930 941
5.125% due 06/01/44 (Þ) 1,160 1,194 3.875% due 01/27/26 1,125 1,201
Kohl's Corp.       Mutual of Omaha Insurance Co.      
5.550% due 07/17/45 505 483 4.297% due 07/15/54 (Þ) 650 652
Kraft Foods Group, Inc.       Mylan, Inc.      
6.875% due 01/26/39 195 274 2.550% due 03/28/19 790 805
Kraft Heinz Foods Co.       Nationwide Mutual Insurance Co.      
2.000% due 07/02/18 (Þ) 207 210 2.943% due 12/15/24 (Ê)(Þ) 700 693
2.800% due 07/02/20 (Þ) 555 580 New York and Presbyterian Hospital      
4.875% due 02/15/25 (Þ) 1,090 1,203 (The)      
4.375% due 06/01/46 (Þ) 250 272 3.563% due 08/01/36 111 118
Kroger Co. (The)       4.763% due 08/01/16 200 223
2.300% due 01/15/19 375 383 Newell Brands, Inc.      
Lam Research Corp.       3.850% due 04/01/23 1,630 1,742
2.800% due 06/15/21 383 395 5.500% due 04/01/46 433 539
Land O' Lakes, Inc.       Newmont Mining Corp.      
6.000% due 11/15/22 (Þ) 445 472 6.250% due 10/01/39 150 174
Lehman Brothers Holdings Capital Trust       NextEra Energy Capital Holdings, Inc.      
VII       2.700% due 09/15/19 352 363
5.857% due 11/29/49 (ƒ)(Ø)(Æ) 1,450 — Series F      
Lehman Brothers Holdings, Inc.       2.056% due 09/01/17 846 851
6.750% due 12/28/17 (Ø)(Æ) 990 — NiSource Finance Corp.      
Lockheed Martin Corp.       6.400% due 03/15/18 100 108
3.350% due 09/15/21 460 495 Noble Energy, Inc.      
3.800% due 03/01/45 405 429 8.250% due 03/01/19 948 1,086
4.700% due 05/15/46 360 436 3.900% due 11/15/24 230 236
Lowe's Cos., Inc.       6.000% due 03/01/41 27 30
5.125% due 11/15/41 300 381 Norfolk Southern Corp.      
Marathon Petroleum Corp.       4.650% due 01/15/46 345 410
Series WI       Northwell Healthcare, Inc.      
6.500% due 03/01/41 157 169 4.800% due 11/01/42 575 633
McDonald's Corp.       Occidental Petroleum Corp.      
4.875% due 12/09/45 235 281 3.500% due 06/15/25 315 338
McKesson Corp.       Oncor Electric Delivery Co. LLC      
2.284% due 03/15/19 720 736 6.800% due 09/01/18 1,350 1,493
Medtronic, Inc.       4.550% due 12/01/41 337 396
Series WI       Oracle Corp.      
4.375% due 03/15/35 278 320 1.900% due 09/15/21 3,058 3,068
4.625% due 03/15/45 338 414 2.400% due 09/15/23 480 485

 

See accompanying notes which are an integral part of this quarterly report.

190 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
2.650% due 07/15/26 980 985 4.150% due 12/01/25 165 179
3.850% due 07/15/36 568 583 Southwestern Electric Power Co.      
6.500% due 04/15/38 250 346 3.550% due 02/15/22 316 339
4.000% due 07/15/46 160 166 Spectra Energy Partners, LP      
PACCAR Financial Corp.       4.500% due 03/15/45 400 401
1.280% due 12/06/18 (Ê) 510 513 Starbucks Corp.      
Pacific Gas & Electric Co.       2.100% due 02/04/21 605 626
4.750% due 02/15/44 140 169 Sunoco Logistics Partners Operations,      
PacifiCorp       LP      
2.950% due 02/01/22 465 492 5.350% due 05/15/45 186 185
Panhandle Eastern Pipe Line Co., LP       TCW Group, Inc.      
8.125% due 06/01/19 725 809 2.320% due 08/28/26 475 481
PepsiCo, Inc.       Thermo Fisher Scientific, Inc.      
4.250% due 10/22/44 325 376 2.400% due 02/01/19 280 286
Pfizer, Inc.       Thomson Reuters Corp.      
1.950% due 06/03/21 875 890 5.650% due 11/23/43 385 464
Philip Morris International, Inc.       Time Warner Cable, Inc.      
6.375% due 05/16/38 196 276 6.550% due 05/01/37 350 420
Plains All American Pipeline, LP / PAA       7.300% due 07/01/38 52 68
Finance Corp.       Time Warner Cos., Inc.      
2.600% due 12/15/19 365 364 7.570% due 02/01/24 537 694
6.650% due 01/15/37 156 165 Time Warner, Inc.      
4.900% due 02/15/45 149 135 2.950% due 07/15/26 198 202
Praxair, Inc.       6.500% due 11/15/36 280 369
3.200% due 01/30/26 910 992 6.250% due 03/29/41 205 272
Precision Castparts Corp.       4.850% due 07/15/45 223 258
2.500% due 01/15/23 435 455 Toyota Motor Credit Corp.      
Progress Energy, Inc.       Series MTN      
7.750% due 03/01/31 442 626 1.026% due 03/12/20 (Ê) 1,820 1,815
Public Service Co. of New Mexico       TTX Co.      
7.950% due 05/15/18 675 747 2.250% due 02/01/19 (Þ) 323 328
Qwest Corp.       UBS AG      
6.750% due 12/01/21 315 346 Series GMTN      
Regency Energy Partners, LP / Regency       1.800% due 03/26/18 615 619
Energy Finance Corp.       UDR, Inc.      
4.500% due 11/01/23 566 565 Series 0001      
Reynolds American, Inc.       4.625% due 01/10/22 578 640
2.300% due 06/12/18 594 605 Union Pacific Corp.      
6.875% due 05/01/20 655 776 4.050% due 11/15/45 395 447
4.450% due 06/12/25 294 332 United Parcel Service, Inc.      
6.150% due 09/15/43 375 504 6.200% due 01/15/38 142 209
5.850% due 08/15/45 212 279 United Technologies Corp.      
SABMiller Holdings, Inc.       1.778% due 05/04/18 1,333 1,344
3.750% due 01/15/22 (Þ) 1,925 2,091 4.500% due 06/01/42 280 332
Sempra Energy       UnitedHealth Group, Inc.      
9.800% due 02/15/19 1,587 1,904 3.875% due 10/15/20 100 109
3.550% due 06/15/24 550 581 3.750% due 07/15/25 320 356
SL Green Realty Corp. / SL Green       4.625% due 07/15/35 283 337
Operating Partnership / Reckson       US Bancorp      
Operating Partnership       2.200% due 04/25/19 1,185 1,215
7.750% due 03/15/20 325 378 2.950% due 07/15/22 570 598
South Carolina Electric & Gas Co.       US Bank NA      
5.100% due 06/01/65 1,165 1,396 1.332% due 01/29/18 (Ê) 250 251
Southern California Edison Co.       1.450% due 01/29/18 530 533
5.625% due 02/01/36 320 419 Series BKNT      
Series C       0.856% due 09/11/17 (Ê) 800 799
3.600% due 02/01/45 395 422 1.375% due 09/11/17 455 457
Southern Co. (The)       USF&G Capital III      
2.150% due 09/01/19 980 1,002 8.312% due 07/01/46 (Þ) 445 612
2.350% due 07/01/21 455 465 Valero Energy Corp.      
3.250% due 07/01/26 850 889 6.625% due 06/15/37 175 196
4.400% due 07/01/46 217 240 Ventas Realty, LP / Ventas Capital Corp.      
Southern Power Co.       2.700% due 04/01/20 525 539

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 191

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)    
    Principal Fair     Principal Fair  
    Amount ($) Value     Amount ($) Value  
    or Shares $     or Shares $  
Verizon Communications, Inc.       2.375% due 11/16/20 425   437
1.375% due 08/15/19 1,015 1,016 Bank of Montreal        
3.000% due 11/01/21 180 190 Series 3FRN        
5.150% due 09/15/23 1,101 1,291 1.025% due 04/10/18 (Ê) 500   498
2.625% due 08/15/26 595 594 Barclays PLC        
4.400% due 11/01/34 355 376 3.650% due 03/16/25 250   247
3.850% due 11/01/42 400 389 Barrick Gold Corp.        
Series WI       4.100% due 05/01/23 281   302
4.272% due 01/15/36 2,257 2,359 5.250% due 04/01/42 325   352
5.012% due 08/21/54 387 426 BHP Billiton Finance USA, Ltd.        
4.672% due 03/15/55 595 618 5.000% due 09/30/43 220   263
Virginia Electric & Power Co.       6.750% due 10/19/75 (Þ) 525   584
Series A       BP Capital Markets PLC        
6.000% due 05/15/37 263 353 3.062% due 03/17/22 720   756
Walgreens Boots Alliance, Inc.       3.994% due 09/26/23 630   687
2.600% due 06/01/21 177 181 3.119% due 05/04/26 770   786
3.100% due 06/01/23 400 413 British Telecommunications PLC        
4.800% due 11/18/44 538 609 9.375% due 12/15/30 124   197
Wal-Mart Stores, Inc.       Canadian Natural Resources, Ltd.        
6.500% due 08/15/37 860 1,278 1.750% due 01/15/18 740   734
6.200% due 04/15/38 280 407 5.900% due 02/01/18 240   252
Walt Disney Co. (The)       3.450% due 11/15/21 315   322
1.850% due 07/30/26 580 562 6.250% due 03/15/38 192   204
WEA Finance LLC / Westfield UK &       6.750% due 02/01/39 188   210
Europe Finance PLC       Canadian Pacific Railway Co.        
2.700% due 09/17/19 (Þ) 460 471 4.800% due 09/15/35 260   302
4.750% due 09/17/44 (Þ) 357 395 CDP Financial, Inc.        
WEC Energy Group, Inc.       5.600% due 11/25/39 (Þ) 545   744
1.650% due 06/15/18 440 443 Colombia Government International        
Wells Fargo & Co.       Bond        
2.125% due 04/22/19 1,165 1,190 4.500% due 01/28/26 535   572
2.100% due 07/26/21 395 397 Cooperatieve Rabobank UA        
3.000% due 04/22/26 680 699 3.750% due 07/21/26 685   687
4.650% due 11/04/44 583 635 11.000% due 06/29/49 (ƒ)(Þ) 522   638
4.400% due 06/14/46 306 324 Corp. Nacional del Cobre de Chile        
Series GMTN       3.000% due 07/17/22 (Þ) 633   638
4.900% due 11/17/45 173 196 4.875% due 11/04/44 (Þ) 34   37
Welltower, Inc.       Credit Agricole SA        
6.125% due 04/15/20 585 667 2.375% due 07/01/21 (Þ) 263   268
4.250% due 04/01/26 294 319 Credit Suisse Group Funding Guernsey,        
Wesleyan University       Ltd.        
4.781% due 07/01/16 269 302 3.800% due 06/09/23 (Þ) 615   624
Williams Partners, LP       4.550% due 04/17/26 (Þ) 710   749
5.250% due 03/15/20 533 561 Series WI        
4.900% due 01/15/45 265 231 4.875% due 05/15/45 255   273
ZFS Finance USA Trust V       Deutsche Bank AG        
6.500% due 05/09/37 (Þ) 1,260 1,269 Series GMTN        
        2.850% due 05/10/19 355   355
      242,159 Deutsche Telekom International Finance        
International Debt - 6.0%       BV        
Actavis Funding SCS       8.750% due 06/15/30 160   251
3.000% due 03/12/20 325 338 DP World, Ltd.        
3.450% due 03/15/22 500 526 6.850% due 07/02/37 (Þ) 190   219
3.800% due 03/15/25 200 213 Dryden 37 Senior Loan Fund        
4.550% due 03/15/35 264 284 Series 2015-37A Class A        
Series WI       2.180% due 04/15/27 (Å)(Ê) 810   810
4.850% due 06/15/44 255 282 Emera, Inc.        
AIA Group, Ltd.       Series 16-A        
2.250% due 03/11/19 (Þ) 207 210 6.750% due 06/15/76 775   838
4.500% due 03/16/46 (Þ) 160 178 European Investment Bank        
America Movil SAB de CV       1.250% due 05/15/18 830   836
6.125% due 03/30/40 169 217 Fosse Master Issuer PLC        
AstraZeneca PLC       Series 2015-1A Class A2        

 

See accompanying notes which are an integral part of this quarterly report.

192 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
0.587% due 10/18/54 (Ê)(Þ) 462 461 1.875% due 05/10/21 264 266
GE Capital International Funding Co.       2.875% due 05/10/26 475 484
Unlimited Co       6.375% due 12/15/38 253 338
Series WI       4.375% due 05/11/45 250 271
4.418% due 11/15/35 1,205 1,389 4.000% due 05/10/46 1,935 1,991
Global SC Finance II SRL       Sky PLC      
Series 2014-1A Class A2       6.100% due 02/15/18 (Þ) 945 1,006
3.090% due 07/17/29 (Þ) 364 348 SMART ABS Trust      
Grupo Bimbo SAB de CV       Series 2015-3US Class A3A      
4.875% due 06/27/44 (Þ) 565 590 1.660% due 08/14/19 730 728
HBOS PLC       South Africa Government International      
Series GMTN       Bond      
6.750% due 05/21/18 (Þ) 425 458 5.875% due 09/16/25 206 234
HSBC Bank PLC       Sumitomo Mitsui Financial Group, Inc.      
7.650% due 05/01/25 385 484 Series 5FXD      
HSBC Holdings PLC       2.058% due 07/14/21 368 368
3.400% due 03/08/21 334 346 Suncor Energy, Inc.      
2.950% due 05/25/21 465 473 6.100% due 06/01/18 334 358
3.900% due 05/25/26 1,938 2,013 5.950% due 12/01/34 545 659
5.250% due 03/14/44 282 320 Tengizchevroil Finance Co. International,      
ING Bank NV       Ltd.      
2.000% due 11/26/18 (Þ) 724 732 4.000% due 08/15/26 (Å) 245 244
Kaupthing Bank HF       Teva Pharmaceutical Finance      
7.625% due 02/28/20 (Å)(Ø)(Æ) 1,210 — Netherlands III BV      
5.750% due 10/04/20 (Å)(Ø)(Æ) 100 — 2.200% due 07/21/21 2,344 2,356
Korea Electric Power Corp.       2.800% due 07/21/23 385 392
5.125% due 04/23/34 (Þ) 155 188 4.100% due 10/01/46 78 80
Magnetite XI, Ltd.       Toronto-Dominion Bank (The)      
Series 2014-11A Class A1       1.542% due 01/22/19 (Ê) 1,120 1,127
1.693% due 01/18/27 (Ê)(Þ) 600 600 1.950% due 04/02/20 (Þ) 317 322
Mylan NV       2.125% due 04/07/21 605 616
3.150% due 06/15/21 (Þ) 1,165 1,201 1.800% due 07/13/21 1,445 1,446
3.950% due 06/15/26 (Þ) 1,885 1,963 Total Capital Canada, Ltd.      
National Bank of Canada       2.750% due 07/15/23 455 472
Series BKNT       Total Capital SA      
1.496% due 12/14/18 (Ê) 650 653 2.125% due 08/10/18 510 519
Perrigo Co. PLC       Trade MAPS 1, Ltd.      
2.300% due 11/08/18 762 765 Series 2013-1A Class A      
Perrigo Finance Unlimited Co.       1.174% due 12/10/18 (Ê)(Þ) 1,645 1,640
4.375% due 03/15/26 400 430 TransCanada PipeLines, Ltd.      
Petroleos Mexicanos       1.625% due 11/09/17 341 342
5.500% due 02/04/19 (Þ) 321 339 7.250% due 08/15/38 250 349
Series WI       Tyco Electronics Group SA      
5.625% due 01/23/46 323 296 6.550% due 10/01/17 705 747
Province of Ontario Canada       UBS AG      
3.000% due 07/16/18 750 779 Series GMTN      
1.650% due 09/27/19 600 608 2.375% due 08/14/19 715 731
2.500% due 04/27/26 525 551 UBS Group Funding Jersey, Ltd.      
Province of Quebec Canada       2.950% due 09/24/20 (Þ) 740 761
0.910% due 09/04/18 (Ê) 380 379 4.125% due 04/15/26 (Þ) 500 529
2.500% due 04/20/26 565 585 Vale Overseas, Ltd.      
Qatar Government International Bond       6.875% due 11/21/36 146 141
2.375% due 06/02/21 (Þ) 607 612 6.875% due 11/10/39 168 159
4.625% due 06/02/46 (Þ) 200 214 Validus Holdings, Ltd.      
Royal Bank of Canada       8.875% due 01/26/40 605 843
1.500% due 07/29/19 506 507       59,331
Series GMTN       Loan Agreements - 0.1%      
0.929% due 10/13/17 (Ê) 560 558 T-Mobile USA, Inc.1st Lien Term Loan B      
4.650% due 01/27/26 780 858 3.500% due 11/09/22 (Ê) 517 520
Seagate HDD Cayman              
4.750% due 06/01/23 905 844 Mortgage-Backed Securities - 30.7%    
Shell International Finance BV       1211 Avenue of the Americas Trust      
2.125% due 05/11/20 340 348 Series 2015-1211 Class A1A2      

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 193

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
3.901% due 08/10/35 (Þ) 780 871 Series 2005-2 Class A1      
225 Liberty Street Trust       3.090% due 03/25/35 (Ê) 553 555
Series 2016-225L Class A       Series 2005-12 Class 13A1      
3.597% due 02/10/36 (Þ) 235 259 3.634% due 02/25/36 (Ê) 30 28
7 WTC Depositor LLC Trust       Bear Stearns Alt-A Trust      
Series 2012-7WTC Class A       Series 2004-13 Class A1      
4.082% due 03/13/31 (Þ) 92 94 0.910% due 11/25/34 (Ê) 745 728
Alternative Loan Trust       Bear Stearns Commercial Mortgage      
Series 2003-20CB Class 2A1       Securities Trust      
5.750% due 10/25/33 65 67 Series 2006-T24 Class A4      
American Home Mortgage Investment       5.537% due 10/12/41 350 350
Trust       Bear Stearns Structured Products, Inc.      
Series 2004-4 Class 4A       Series 2007-R6 Class 2A1      
2.978% due 02/25/45 (Ê) 66 67 2.478% due 12/26/46 (Ê) 123 92
Banc of America Commercial Mortgage       CHL Mortgage Pass-Through Trust      
Trust       Series 2004-22 Class A3      
Series 2015-UBS7 Class A4       2.643% due 11/25/34 (Ê) 123 117
3.705% due 09/15/48 62 69 Citigroup Commercial Mortgage Trust      
Banc of America Funding Trust       Series 2014-GC19 Class A4      
Series 2005-5 Class 1A11       4.023% due 03/10/47 825 928
5.500% due 09/25/35 137 141 Series 2014-GC25 Class AAB      
Series 2005-D Class A1       3.371% due 10/10/47 1,015 1,085
2.898% due 05/25/35 (Ê) 73 75 Citigroup Mortgage Loan Trust, Inc.      
Banc of America Merrill Lynch       Series 2004-UST1 Class A5      
Commercial Mortgage Securities Trust       2.253% due 08/25/34 (Ê) 949 932
Series 2014-520M Class A       Series 2005-3 Class 2A2B      
4.185% due 08/15/46 (Þ) 230 269 2.708% due 08/25/35 (Ê) 134 100
Banc of America Merrill Lynch              
Commercial Mortgage, Inc.       Series 2005-11 Class A2A      
Series 2006-3 Class A4       2.730% due 10/25/35 (Ê) 81 80
5.889% due 07/10/44 40 40 Series 2007-AR8 Class 2A1A      
Series 2006-6 Class A4       2.685% due 07/25/37 (Ê) 151 142
5.356% due 10/10/45 1,663 1,667 Series 2010-8 Class 3A1      
Series 2007-1 Class A4       2.968% due 04/25/35 (Ê)(Þ) 649 649
5.451% due 01/15/49 775 786 Series 2015-2 Class 1A1      
        0.371% due 06/25/47 (Ê)(Þ) 366 315
Series 2008-1 Class A4       Commercial Mortgage Pass-Through      
6.433% due 02/10/51 496 520        
Banc of America Mortgage Securities,       Certificates      
        Series 2013-CR12 Class A4      
Inc.       4.046% due 10/10/46 965 1,090
Series 2004-1 Class 5A1              
6.500% due 09/25/33 6 6 Commercial Mortgage Trust      
        Series 2005-LP5 Class D      
Series 2004-2 Class 5A1       4.795% due 05/10/43 1 1
6.500% due 10/25/31 7 7        
        Series 2012-9W57 Class A      
Series 2004-11 Class 2A1       2.365% due 02/10/29 (Þ) 1,185 1,190
5.750% due 01/25/35 71 72        
        Series 2013-CR11 Class A3      
Series 2005-H Class 2A5       3.983% due 10/10/46 353 396
2.691% due 09/25/35 (Ê) 261 239        
        Series 2014-CR19 Class A5      
Series 2006-2 Class A15       3.796% due 08/10/47 330 366
6.000% due 07/25/46 4 4        
        Series 2014-UBS6 Class A5      
Series 2006-B Class 1A1       3.644% due 12/10/47 320 350
2.497% due 10/20/46 (Ê) 63 39        
        Series 2015-CR25 Class A4      
BCAP LLC Trust       3.759% due 08/10/48 237 263
Series 2011-R11 Class 15A1              
2.739% due 10/26/33 (Ê)(Þ) 1,040 1,047 Series 2015-LC21 Class A4      
Series 2011-R11 Class 20A5       3.708% due 07/10/48 145 161
2.736% due 03/26/35 (Ê)(Þ) 237 237 Series 2016-787S Class A      
Bear Stearns Adjustable Rate Mortgage       3.545% due 02/10/36 (Þ) 235 258
Trust       Countrywide Home Loan Mortgage Pass-      
Series 2004-8 Class 2A1       Through Trust      
2.929% due 11/25/34 (Ê) 180 172 Series 2004-HYB9 Class 1A1      
        2.600% due 02/20/35 (Ê) 222 222
Series 2004-9 Class 22A1       Credit Suisse Commercial Mortgage      
3.226% due 11/25/34 (Ê) 40 38 Trust      
Series 2004-10 Class 22A1       Series 2007-C2 Class A3      
2.522% due 01/25/35 (Ê) 40 39 5.542% due 01/15/49 285 287

 

See accompanying notes which are an integral part of this quarterly report.

194 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Series 2007-C5 Class A4       3.100% due 2026 315 343
5.695% due 09/15/40 885 911 3.400% due 2026 439 486
Series 2008-C1 Class A2FL       3.500% due 2026 626 664
2.567% due 02/15/41 (Ê)(Þ) 276 279 7.000% due 2026 9 9
Credit Suisse First Boston Mortgage       9.000% due 2026 2 2
Securities Corp.       2.500% due 2027 31 33
Series 2005-9 Class 2A1       3.000% due 2027 795 836
5.500% due 10/25/35 375 346        
CSAIL Commercial Mortgage Trust       3.500% due 2027 328 348
Series 2015-C2 Class XA       5.500% due 2027 120 135
Interest Only STRIP       7.000% due 2027 1 1
0.890% due 06/15/57 9,870 544 2.500% due 2028 2,484 2,580
Series 2015-C4 Class A4       2.820% due 2028 464 491
3.808% due 11/15/48 123 137 2.910% due 2028 460 489
CSMC Trust       3.000% due 2028 298 313
Series 2014-USA Class A2       3.010% due 2028 474 508
3.953% due 09/15/37 (Þ) 766 838 3.380% due 2028 400 436
CW Capital Cobalt, Ltd.       3.000% due 2029 622 655
Series 2007-C3 Class A4       2.500% due 2030 700 726
5.959% due 05/15/46 1,397 1,435 3.000% due 2030 1,810 1,910
DBCCRE Mortgage Trust       3.320% due 2030 445 489
Series 2014-ARCP Class C       3.500% due 2030 366 388
5.099% due 01/10/34 (Þ) 305 322 8.000% due 2030 22 25
DBRR Trust       2.500% due 2031 50 52
Series 2011-LC2 Class A4A              
4.537% due 07/12/44 (Þ) 690 758 3.000% due 2031 117 123
Downey Savings & Loan Association       8.000% due 2031 16 20
Mortgage Loan Trust       3.000% due 2033 567 597
Series 2004-AR3 Class 1A1B       4.500% due 2033 39 43
2.456% due 07/19/44 (Ê) 56 55 5.000% due 2033 315 349
Fannie Mae       5.500% due 2033 358 408
5.000% due 2017 14 14 6.150% due 2033(Ê) 242 279
6.500% due 2017 6 6 3.500% due 2034 529 564
8.500% due 2017 — — 4.500% due 2034 23 25
5.000% due 2018 36 37 5.000% due 2034 130 145
5.500% due 2018 83 85 5.500% due 2034 669 757
6.500% due 2018 14 16 6.000% due 2034 99 115
5.000% due 2019 36 37 4.500% due 2035 873 959
6.500% due 2019 9 11 5.000% due 2035 102 113
3.540% due 2020 416 450 6.000% due 2035 322 371
5.000% due 2020 51 53 5.500% due 2036 760 859
5.500% due 2020 357 370 6.500% due 2036 7 8
6.500% due 2020 6 7 5.000% due 2037 101 112
3.881% due 2021 1,266 1,393 5.500% due 2037 1,438 1,629
4.000% due 2021 26 27 6.000% due 2037 252 288
4.640% due 2021 1,287 1,442 6.500% due 2037 43 50
5.500% due 2021 14 15 5.000% due 2038 6 7
5.000% due 2022 60 64 5.500% due 2038 1,486 1,681
5.500% due 2022 51 54 4.500% due 2039 800 875
3.800% due 2023 409 428 5.000% due 2039 25 28
4.500% due 2023 51 55 6.000% due 2039 102 117
5.000% due 2023 99 105 4.000% due 2040 324 352
4.500% due 2024 108 116 4.500% due 2040 2,390 2,625
5.000% due 2024 16 17 5.000% due 2040 529 591
8.500% due 2024 3 3 5.500% due 2040 1,272 1,442
9.000% due 2024 1 1 3.500% due 2041 2,102 2,242
3.500% due 2025 102 108 4.000% due 2041 767 832
4.000% due 2025 212 226 4.500% due 2041 1,618 1,775
4.500% due 2025 18 19 5.000% due 2041 990 1,101
7.000% due 2025 4 4 5.500% due 2041 109 123
8.500% due 2025 9 10 3.000% due 2042 1,524 1,594
3.000% due 2026 177 186 3.500% due 2042 1,248 1,322

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 195

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)    
    Principal Fair     Principal Fair  
    Amount ($) Value     Amount ($) Value  
    or Shares $     or Shares $  
4.000% due 2042 1,087 1,171 FDIC Guaranteed Notes Trust        
4.500% due 2042 150 165 Series 2010-S1 Class 1A        
3.000% due 2043 3,928 4,102 0.983% due 02/25/48 (Ê)(Þ) 21   21
3.500% due 2043 4,801 5,137 FDIC Trust        
4.000% due 2043 1,723 1,864 Series 2010-R1 Class A        
4.500% due 2043 27 29 2.184% due 05/25/50 (Þ) 451   451
3.000% due 2044 203 212 Federal Home Loan Mortgage Corp.        
        Multifamily Structured Pass-Through        
4.000% due 2044 496 532 Certificates        
5.000% due 2044 572 635 Series 2011-K702 Class X1        
3.000% due 2045 391 407 Interest Only STRIP        
3.500% due 2045 11,543 12,222 1.452% due 02/25/18 4,465   84
4.000% due 2045 5,993 6,483 Series 2012-K706 Class X1        
4.500% due 2045 712 785 Interest Only STRIP        
3.500% due 2046 12,296 12,996 1.703% due 10/25/18 8,461   250
4.000% due 2046 4,363 4,726 Series 2014-K040 Class A2        
4.500% due 2046 869 975 3.241% due 09/25/24 301   331
15 Year TBA(Ï)       Series 2014-K041 Class A2        
2.500% 5,945 6,157 3.171% due 10/25/24 282   309
3.000% 2,825 2,964 Series 2015-K048 Class A2        
3.500% 2,235 2,367 3.284% due 06/25/25 497   549
30 Year TBA(Ï)       Series 2015-K049 Class A2        
3.000% 10,905 11,348 3.010% due 08/25/25 164   178
3.500% 7,025 7,420 Series 2015-KF12 Class A        
4.000% 4,465 4,787 1.125% due 09/25/22 (Ê) 668   671
4.500% 3,743 4,081 Series 2016-K053 Class A2        
Series 2003-343 Class 6       2.995% due 12/25/25 263   284
Interest Only STRIP       Series 2016-K056 Class A2        
5.000% due 10/25/33 123 22 2.525% due 05/25/26 320   330
Series 2003-345 Class 18       Series 2016-KIR1 Class A2        
Interest Only STRIP       2.849% due 03/25/26 500   528
4.500% due 12/25/18 84 3 Series 2016-KJ04 Class A2        
Series 2003-345 Class 19       2.131% due 01/25/21 925   951
Interest Only STRIP       Series 2016-KW01 Class A2        
4.500% due 01/25/19 90 3 2.853% due 01/25/26 590   614
Series 2005-365 Class 12       Federal Housing Authority Trust        
Interest Only STRIP       7.430% due 06/27/21 19   19
5.500% due 12/25/35 228 37 Freddie Mac        
Series 2006-369 Class 8       6.000% due 2017 7   7
Interest Only STRIP       4.500% due 2018 38   39
5.500% due 04/25/36 47 10 5.000% due 2018 7   7
Fannie Mae Grantor Trust       4.500% due 2019 15   15
Series 2002-T5 Class A1       5.000% due 2019 37   38
0.410% due 05/25/32 (Ê) 211 205 6.000% due 2022 3   4
Fannie Mae REMIC Trust       4.000% due 2024 82   88
Series 2004-W12 Class 1A1       5.500% due 2024 52   55
6.000% due 07/25/44 387 454 9.000% due 2024 3   3
Series 2004-W12 Class 1A3       6.500% due 2025 3   3
7.000% due 07/25/44 909 1,093 8.000% due 2025 3   3
Fannie Mae REMICS       9.000% due 2025 3   3
Series 1999-56 Class Z                
7.000% due 12/18/29 67 77 3.000% due 2026 111   116
Series 2003-35 Class FY       5.000% due 2027 1   2
0.570% due 05/25/18 (Ê) 36 36 6.500% due 2027 —   —
Series 2005-117 Class LC       5.000% due 2028 107   118
5.500% due 11/25/35 422 457 6.000% due 2028 129   147
Series 2009-70 Class PS       6.500% due 2028 8   9
Interest Only STRIP       6.500% due 2029 6   7
6.581% due 01/25/37 (Ê) 2,232 422 3.500% due 2030 300   320
Series 2009-96 Class DB       3.000% due 2031 652   685
4.000% due 11/25/29 661 708 5.500% due 2032 132   150
Series 2013-111 Class PL       6.000% due 2032 16   18
2.000% due 12/25/42 955 930 7.000% due 2032 94   107

 

See accompanying notes which are an integral part of this quarterly report.

196 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
7.500% due 2032 14 18 Series 2012-4019 Class JD      
5.500% due 2033 55 63 3.000% due 05/15/41 437 455
5.000% due 2034 369 412 Series 2013-4281 Class LG      
5.500% due 2034 55 62 4.000% due 01/15/43 360 385
5.500% due 2035 87 97 Freddie Mac Strips      
5.500% due 2036 84 95 Series 2012-271 Class 30      
6.000% due 2036 31 35 3.000% due 08/15/42 1,456 1,514
5.000% due 2037 5 6 FREMF Mortgage Trust      
5.500% due 2037 13 15 Series 2012-K707 Class B      
6.000% due 2037 67 76 3.883% due 01/25/47 (Þ) 835 863
        Series 2013-K24 Class B      
5.000% due 2038 2 3 3.502% due 11/25/45 (Þ) 1,565 1,638
5.500% due 2038 61 68 Ginnie Mae      
6.000% due 2038 70 80 4.000% due 12/20/45 50 53
4.500% due 2039 197 216 Series 2004-93 Class PC      
5.500% due 2039 16 18 5.000% due 04/16/34 842 871
4.000% due 2040 1,634 1,782 Series 2007-26 Class SD      
4.500% due 2040 1,151 1,273 Interest Only STRIP      
5.000% due 2040 19 21 6.613% due 05/16/37 (Ê) 2,131 451
5.500% due 2040 10 11 Series 2010-H04 Class BI      
4.000% due 2041 515 553 Interest Only STRIP      
4.500% due 2041 1,064 1,165 1.406% due 04/20/60 3,295 148
5.000% due 2041 219 242 Series 2010-H12 Class PT      
5.500% due 2041 485 549 5.470% due 11/20/59 1,433 1,466
3.000% due 2042 1,125 1,171 Series 2010-H22 Class JI      
3.500% due 2042 995 1,056 Interest Only STRIP      
4.000% due 2042 708 766 2.503% due 11/20/60 5,956 390
4.500% due 2042 791 870 Series 2011-H02 Class BI      
3.000% due 2043 2,424 2,525 Interest Only STRIP      
        0.420% due 02/20/61 13,786 170
3.500% due 2043 3,576 3,825 Series 2012-H11 Class CI      
4.000% due 2043 100 108 Interest Only STRIP      
3.500% due 2044 656 697 2.909% due 04/20/62 4,210 258
4.000% due 2044 1,831 1,982 Series 2012-H23 Class FI      
4.500% due 2044 6 6 Interest Only STRIP      
3.000% due 2045 331 345 0.783% due 10/20/62 5,615 99
3.500% due 2045 2,951 3,139 Series 2013-H03 Class HI      
4.000% due 2045 2,988 3,234 Interest Only STRIP      
3.000% due 2046 3,238 3,369 2.622% due 12/20/62 4,361 366
3.500% due 2046 8,183 8,639 Ginnie Mae I      
4.000% due 2046 7,804 8,436 10.500% due 2020 — —
30 Year TBA(Ï)       9.000% due 2025 6 6
3.000% 2,935 3,052 8.000% due 2030 5 5
3.500% 2,930 3,092 7.000% due 2031 22 25
4.000% 60 64 7.000% due 2033 1 1
Freddie Mac Reference REMIC       3.000% due 2042 392 413
Series 2006-R007 Class ZA       3.000% due 2043 581 611
6.000% due 05/15/36 613 698 3.500% due 2043 165 176
Freddie Mac REMICS       Ginnie Mae II      
Series 2002-2533 Class Z       7.500% due 2032 2 2
5.500% due 12/15/32 1,297 1,475 5.500% due 2039 117 128
Series 2006-3123 Class HT       1.750% due 2040(Ê) 179 185
5.000% due 03/15/26 428 468 2.000% due 2040(Ê) 261 270
Series 2006-R006 Class ZA       3.000% due 2040(Ê) 326 338
6.000% due 04/15/36 1,040 1,200 3.500% due 2040(Ê) 1,631 1,691
Series 2010-3632 Class PK       4.000% due 2040 43 46
5.000% due 02/15/40 375 416 4.000% due 2041 272 292
Series 2010-3653 Class B       4.500% due 2041 1,271 1,381
4.500% due 04/15/30 935 1,030        
Series 2011-3954 Class HU       5.500% due 2041 14 15
4.000% due 05/15/29 81 83 3.000% due 2042 189 200
Series 2012-3989 Class BW       3.500% due 2042 721 768
3.500% due 01/15/27 3,180 3,489 4.000% due 2042 989 1,061

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 197

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
4.500% due 2042 399 434 Series 2007-CB20 Class ASB      
3.000% due 2043 758 799 5.688% due 02/12/51 143 145
3.500% due 2043 1,473 1,571 Series 2007-LDPX Class AM      
4.000% due 2043 317 338 5.464% due 01/15/49 760 735
5.500% due 2043 392 431 Series 2011-C3 Class A2      
3.500% due 2044 525 558 3.673% due 02/15/46 (Þ) 7 7
4.000% due 2044 461 493 Series 2011-C3 Class A3      
3.000% due 2045 829 872 4.388% due 02/15/46 (Þ) 1,325 1,379
3.500% due 2045 1,787 1,901 Series 2011-C4 Class A3      
4.000% due 2045 712 761 4.106% due 07/15/46 (Þ) 1,387 1,447
3.000% due 2046 1,872 1,968 Series 2015-FL7 Class A      
3.500% due 2046 2,633 2,803 1.683% due 05/15/28 (Ê)(Þ) 259 258
        Series 2016-JP2 Class A4      
4.000% due 2046 1,960 2,098 2.822% due 08/15/49 148 154
5.390% due 2059 254 261 JPMorgan Mortgage Trust      
5.245% due 2061 639 684 Series 2003-A2 Class 3A1      
4.845% due 2062 320 338 1.990% due 11/25/33 (Ê) 160 152
4.652% due 2063 257 286 Series 2004-A2 Class 3A1      
4.661% due 2063 98 108 2.573% due 05/25/34 (Ê) 312 300
30 Year TBA(Ï)       Series 2005-A1 Class 6T1      
3.000% 5,075 5,330 2.873% due 02/25/35 (Ê) 340 322
3.500% 7,040 7,482 Series 2005-A3 Class 4A1      
4.000% 1,295 1,383 2.658% due 06/25/35 (Ê) 129 130
GS Mortgage Securities Corp. II       LB Commercial Mortgage Trust      
Series 2015-GC30 Class A4       Series 2007-C3 Class AM      
3.382% due 05/10/50 27 29 6.096% due 07/15/44 790 812
GS Mortgage Securities Trust       LB-UBS Commercial Mortgage Trust      
Series 2012-SHOP Class A       Series 2007-C6 Class A4      
2.933% due 06/05/31 (Þ) 647 668 5.858% due 07/15/40 884 902
Series 2014-GC18 Class A4       Mastr Alternative Loan Trust      
4.074% due 01/10/47 625 704 Series 2003-4 Class B1      
Series 2015-590M Class A       5.941% due 06/25/33 105 93
3.621% due 10/10/35 (Þ) 194 211 Series 2004-10 Class 5A6      
GSR Mortgage Loan Trust       5.750% due 09/25/34 114 116
Series 2005-AR7 Class 6A1       Merrill Lynch Mortgage Investors Trust      
2.842% due 11/25/35 (Ê) 464 444 Series 2005-A10 Class A      
HarborView Mortgage Loan Trust       0.656% due 02/25/36 (Ê) 113 103
Series 2004-4 Class 3A       ML-CFC Commercial Mortgage Trust      
1.281% due 06/19/34 (Ê) 54 52 Series 2007-5 Class A4      
Series 2005-4 Class 3A1       5.378% due 08/12/48 386 389
2.744% due 07/19/35 (Ê) 149 129 Morgan Stanley Bank of America Merrill      
Homestar Mortgage Acceptance Corp.       Lynch Trust      
Series 2004-5 Class A1       Series 2013-C12 Class A4      
0.620% due 10/25/34 (Ê) 835 823 4.259% due 10/15/46 153 175
Impac CMB Trust       Series 2014-C14 Class A4      
Series 2004-5 Class 1A1       3.787% due 02/15/47 165 182
0.907% due 10/25/34 (Ê) 167 159 Series 2014-C14 Class A5      
IndyMac INDX Mortgage Loan Trust       4.064% due 02/15/47 45 51
Series 2004-AR6 Class 5A1       Series 2014-C15 Class AS      
2.519% due 10/25/34 (Ê) 8 8 4.255% due 04/15/47 435 492
Series 2005-AR15 Class A2       Series 2015-C24 Class A4      
4.534% due 09/25/35 (Ê) 97 81 3.732% due 05/15/48 945 1,047
JPMBB Commercial Mortgage Securities       Series 2015-C24 Class C      
Trust       4.499% due 05/15/48 85 83
Series 2014-C26 Class C       Series 2016-C28 Class A4      
4.570% due 01/15/48 210 220 3.544% due 01/15/49 3 3
JPMorgan Chase Commercial Mortgage       Morgan Stanley Capital I Trust      
Securities Trust       Series 2005-IQ9 Class B      
Series 2004-CBX Class AJ       4.860% due 07/15/56 415 413
4.951% due 01/12/37 307 306 Series 2006-T21 Class B      
Series 2004-LN2 Class B       5.312% due 10/12/52 (Þ) 320 319
5.466% due 07/15/41 500 497 Series 2014-CPT Class A      
Series 2005-CB12 Class AJ       3.350% due 07/13/29 (Þ) 456 486
4.987% due 09/12/37 132 132        

 

See accompanying notes which are an integral part of this quarterly report.

198 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Morgan Stanley Mortgage Loan Trust       Wedgewood Real Estate Trust      
Series 2004-6AR Class 1A       Series 2016-1 Class A1      
0.620% due 07/25/34 (Ê) 881 864 3.450% due 07/15/46 (Þ) 185 185
MortgageIT Trust       Wells Fargo Commercial Mortgage Trust      
Series 2005-2 Class 2A       Series 2015-NXS3 Class A4      
1.805% due 05/25/35 (Ê) 464 453 3.617% due 09/15/57 19 21
MSCG Trust       Series 2015-SG1 Class A4      
Series 2015-ALDR Class A2       3.789% due 12/15/47 171 190
3.577% due 06/07/35 (Þ) 310 330 Wells Fargo Mortgage Backed Securities      
OBP Depositor LLC Trust       Trust      
Series 2010-OBP Class A       Series 2003-J Class 1A9      
4.646% due 07/15/45 (Þ) 230 253 2.612% due 10/25/33 (Ê) 835 835
Prime Mortgage Trust       Series 2004-CC Class A1      
Series 2004-CL1 Class 1A2       2.840% due 01/25/35 (Ê) 92 92
0.621% due 02/25/34 (Ê) 20 19 Series 2005-AR10 Class 2A4      
RALI Trust       2.652% due 06/25/35 (Ê) 39 41
Series 2005-QA10 Class A41       Series 2006-2 Class 2A3      
3.406% due 09/25/35 (Ê) 273 219 5.500% due 03/25/36 115 114
Series 2005-QO3 Class A1       Series 2006-AR8 Class 1A3      
0.587% due 10/25/45 (Ê) 407 290 2.737% due 04/25/36 (Ê) 608 600
RBS Commercial Funding, Inc. Trust       WFRBS Commercial Mortgage Trust      
Series 2013-GSP Class A       Series 2014-C19 Class A3      
3.834% due 01/13/32 (Þ) 235 261 3.660% due 03/15/47 480 516
RBSCF Trust       Series 2014-C21 Class XA      
Series 2010-RR4 Class CMLA       Interest Only STRIP      
6.040% due 12/16/49 (Þ) 179 183 1.336% due 08/15/47 7,840 509
Series 2010-RR4 Class WBCA             306,144
5.509% due 04/16/47 (Þ) 454 453 Municipal Bonds - 0.8%      
RBSSP Resecuritization Trust       Brazos Higher Education Authority      
Series 2010-3 Class 9A1       Revenue Bonds      
5.500% due 02/26/35 (Þ) 399 403 0.640% due 12/26/24 (Ê) 330 310
SG Commercial Mortgage Securities       City of New York New York General      
Trust       Obligation Unlimited      
Series 2016-C5 Class A4       Series F1      
3.055% due 10/10/48 600 625 6.646% due 12/01/31 200 241
Structured Adjustable Rate Mortgage       Municipal Electric Authority of Georgia      
Loan Trust       Revenue Bonds      
Series 2004-6 Class 1A       6.637% due 04/01/57 990 1,385
2.358% due 06/25/34 (Ê) 321 316 7.055% due 04/01/57 1,410 1,758
Series 2004-12 Class 7A3       New Jersey Transportation Trust Fund      
2.694% due 09/25/34 (Ê) 110 109 Authority Revenue Bonds      
Structured Asset Mortgage Investments       5.754% due 12/15/28 455 510
II Trust       New York City Water & Sewer System      
Series 2005-AR5 Class A2       Revenue Bonds      
0.686% due 07/19/35 (Ê) 86 83 6.491% due 06/15/42 700 815
Structured Asset Securities Corp.       Puttable Floating Option Taxable Notes      
Mortgage Pass-Through Certificates       General Obligation Unlimited      
Series 2003-34A Class 5A4       0.690% due 08/01/49 (Ê)(Þ) 960 960
2.974% due 11/25/33 (Ê) 832 840 San Diego Tobacco Settlement Revenue      
Wachovia Bank Commercial Mortgage       Funding Corp. Revenue Bonds      
Trust       7.125% due 06/01/32 210 246
Series 2006-C26 Class AM       State of California General Obligation      
6.211% due 06/15/45 865 868 Unlimited      
Series 2007-C33 Class A4       6.650% due 03/01/22 425 527
6.147% due 02/15/51 295 300 7.300% due 10/01/39 300 468
Washington Mutual Mortgage Pass-       7.350% due 11/01/39 77 121
Through Certificates Trust       State of Illinois General Obligation      
Series 2003-AR9 Class 1A7       Unlimited      
2.409% due 09/25/33 (Ê) 34 34 5.877% due 03/01/19 335 364
Series 2003-AR10 Class A7       University of California Revenue Bonds      
2.420% due 10/25/33 (Ê) 303 308 4.767% due 05/15/15 255 289
Series 2004-AR1 Class A             7,994
2.771% due 03/25/34 (Ê) 1,329 1,332 Non-US Bonds - 0.2%      
Series 2005-AR13 Class A1A1       Queensland Treasury Corp.      
0.743% due 10/25/45 (Ê) 1,220 1,135        

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 199

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
      Principal Fair     Principal Fair
  Amount ($) Value     Amount ($) Value
      or Shares $     or Shares $
Series 21         0.750% due 07/15/19 1,856 1,855
5.500% due 06/21/21 AUD 2,277 2,020 3.625% due 08/15/19 365 396
          8.125% due 08/15/19 4,760 5,809
United States Government Agencies - 1.0%   1.500% due 10/31/19 2,100 2,145
Fannie Mae         1.375% due 02/29/20 4,998 5,086
2.000% due 09/26/17   350 351 1.125% due 03/31/20 2,000 2,018
0.478% due 10/05/17 (Ê)   2,495 2,493 1.125% due 04/30/20 2,525 2,547
1.125% due 12/14/18   335 337 1.375% due 04/30/20 3,694 3,759
1.000% due 02/26/19   165 166 8.750% due 05/15/20 2,500 3,230
0.875% due 08/02/19   100 100 1.625% due 07/31/20 1,344 1,380
1.625% due 01/21/20   100 102 1.375% due 09/30/20 9,239 9,396
1.600% due 12/24/20   1,205 1,205 2.000% due 09/30/20 200 208
1.875% due 12/28/20   125 129 1.375% due 10/31/20 3,674 3,736
2.625% due 09/06/24   474 510 1.750% due 10/31/20 500 516
2.125% due 04/24/26   20 21 1.625% due 11/30/20 192 197
7.125% due 01/15/30   100 158 1.375% due 01/31/21 62 63
7.250% due 05/15/30   230 369 3.625% due 02/15/21 1,000 1,116
6.625% due 11/15/30   100 154 1.250% due 03/31/21 250 253
Federal Home Loan Banks         2.250% due 03/31/21 500 528
0.875% due 06/29/18   250 251 1.375% due 04/30/21 1,250 1,270
2.875% due 09/11/20   250 268 8.125% due 05/15/21 300 400
1.375% due 02/18/21   120 121 1.125% due 06/30/21 10,641 10,686
Freddie Mac         2.125% due 06/30/21 750 789
1.125% due 04/15/19   250 252        
2.375% due 01/13/22   837 887 1.125% due 07/31/21 9,388 9,428
6.250% due 07/15/32   424 649 2.125% due 08/15/21 3,000 3,157
          2.000% due 08/31/21 250 262
Series GMTN         2.000% due 10/31/21 435 455
0.750% due 04/09/18   375 375        
Tennessee Valley Authority         8.000% due 11/15/21 1,250 1,695
6.150% due 01/15/38   345 531 1.500% due 01/31/22 210 214
3.500% due 12/15/42   343 380 1.750% due 02/28/22 2,060 2,129
4.250% due 09/15/65   387 465 1.750% due 04/30/22 1,150 1,188
        10,274 1.875% due 05/31/22 1,315 1,368
United States Government Treasuries - 20.2%   1.625% due 11/15/22 850 870
United States Treasury Inflation Indexed         1.500% due 03/31/23 2,060 2,090
Bonds         1.750% due 05/15/23 1,000 1,031
0.125% due 07/15/24   1,968 1,994 1.375% due 06/30/23 1,440 1,448
0.250% due 01/15/25   1,435 1,464 6.250% due 08/15/23 480 642
0.375% due 07/15/25   410 425 2.750% due 02/15/24 335 370
0.625% due 02/15/43   940 951 2.500% due 05/15/24 600 651
1.375% due 02/15/44   2,747 3,287 2.250% due 11/15/24 850 908
United States Treasury Notes         2.000% due 02/15/25 2,560 2,682
0.625% due 11/30/17   500 500 1.625% due 05/15/26 (§) 24,223 24,585
0.750% due 12/31/17   2,545 2,549 6.500% due 11/15/26 115 170
1.000% due 12/31/17   260 261 6.125% due 08/15/29 400 614
0.875% due 01/31/18   1,100 1,104 5.375% due 02/15/31 640 954
0.750% due 02/28/18   11,945 11,962 4.500% due 02/15/36 300 436
0.750% due 03/31/18   1,250 1,252 4.750% due 02/15/37 3,549 5,336
0.750% due 04/15/18   600 601 4.375% due 05/15/40 500 722
0.625% due 04/30/18   2,250 2,248 3.875% due 08/15/40 1,270 1,713
2.625% due 04/30/18   1,200 1,241 3.750% due 08/15/41 250 332
0.625% due 06/30/18   2,454 2,452 3.125% due 02/15/42 1,300 1,567
1.500% due 08/31/18   250 254 2.750% due 08/15/42 1,630 1,834
2.750% due 02/15/19   250 263 2.750% due 11/15/42 2,500 2,810
1.375% due 02/28/19   2,180 2,216 3.125% due 02/15/43 985 1,186
1.500% due 02/28/19   2,500 2,550 2.875% due 05/15/43 1,000 1,149
1.500% due 03/31/19   250 255 3.750% due 11/15/43 1,150 1,547
0.875% due 04/15/19   3,100 3,111 2.875% due 02/15/45 1,950 2,078
0.875% due 06/15/19   1,605 1,610 3.000% due 05/15/45 1,141 1,341
1.000% due 06/30/19   700 705 2.875% due 08/15/45 2,912 3,345
1.625% due 06/30/19   500 512 3.000% due 11/15/45 100 118

 

See accompanying notes which are an integral part of this quarterly report.

200 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
2.500% due 02/15/46 7,993 8,525 Fannie Mae      
2.500% due 05/15/46 8,532 9,120 5.500% due 01/01/17 3 3
      201,220 7.500% due 03/01/17 — —
Total Long-Term Investments       Federal Home Loan Banks      
(cost $877,484)     904,487 3.150% due 06/28/17 1,315 1,319
        Federal Home Loan Mortgage Corp.      
Preferred Stocks - 0.1%       Multifamily Structured Pass-Through      
        Certificates      
Financial Services - 0.1%       Series 2012-K501 Class X1A      
State Street Corp. 23,000 636 Interest Only STRIP      
        1.447% due 08/25/16 (ç) 7,117 1
Technology - 0.0%       Ford Motor Credit Co. LLC      
Verizon Communications, Inc. 10,770 300 1.461% due 03/27/17 1,442 1,443
        Freddie Mac      
Total Preferred Stocks       9.000% due 08/01/16 — —
(cost $844)     936 2.000% due 08/25/16 1,275 1,277
        9.000% due 10/01/16 — —
Short-Term Investments - 15.5%       9.000% due 11/01/16 — —
American Express Credit Corp.       9.000% due 12/01/16 — —
1.125% due 06/05/17 1,500 1,502 6.000% due 07/01/17 10 10
Anheuser-Busch InBev Finance, Inc.       General Electric Co.      
0.924% due 01/27/17 (Ê) 800 799 0.796% due 02/15/17 (Ê) 800 800
Bank of America NA       General Mills, Inc.      
Series BKNT              
0.953% due 06/15/17 (Ê) 1,340 1,336 5.700% due 02/15/17 250 256
        International Lease Finance Corp.      
6.100% due 06/15/17 950 989 6.750% due 09/01/16 (Þ) 750 753
Bank of New York Mellon Corp. (The)       Intesa Sanpaolo SpA      
1.969% due 06/20/17 765 772 2.375% due 01/13/17 826 828
Bank of Nova Scotia       Johnson & Johnson      
1.115% due 04/25/17 (Ê)(~) 1,700 1,698 0.744% due 11/28/16 (Ê) 1,550 1,550
Bank of Tokyo-Mitsubishi UFJ, Ltd.       Kellogg Co.      
0.420% due 08/04/16 (ç)(~) 500 500 1.875% due 11/17/16 1,000 1,003
Bear Stearns Cos. LLC (The)       Kraft Heinz Foods Co.      
5.550% due 01/22/17 470 480 1.600% due 06/30/17 (Þ) 1,163 1,168
BMW US Capital LLC       Lehman Brothers Holdings, Inc.      
1.026% due 06/02/17 (Ê) 1,600 1,599 6.500% due 07/19/17 (Ø) 390 —
Caisse Centrale Desjardins       Liberty Street Funding LLC      
1.040% due 03/27/17 (Å)(Ê) 1,930 1,927 0.691% due 10/11/16 (Þ)(~) 500 499
Canadian Imperial Bank of Commerce       Metropolitan Life Global Funding I      
0.956% due 06/02/17 (Ê)(~) 1,250 1,249 1.300% due 04/10/17 (Þ) 337 338
Chariot Funding LLC       Morgan Stanley      
1.000% due 03/31/17 (Þ)(~) 750 744 1.129% due 10/18/16 (Ê) 545 545
Coca-Cola European Partners US LLC              
2.000% due 08/19/16 500 500 5.550% due 04/27/17 410 424
CRC Funding LLC       Series GMTN      
0.924% due 01/05/17 (Þ)(~) 500 498 5.450% due 01/09/17 600 611
Credit Suisse AG       National Bank of Canada      
Series GMTN       1.061% due 05/24/17 (Ê)(~) 650 649
1.375% due 05/26/17 500 500 National City Bank      
eBay, Inc.       Series BKNT      
0.943% due 07/28/17 (Ê) 935 931 1.052% due 06/07/17 (Ê) 900 899
ENI Finance USA, Inc.       Nomura Holdings, Inc.      
0.760% due 08/01/16 (ç)(Þ)(~) 250 250 2.000% due 09/13/16 825 826
Exelon Corp.       Ontario Teachers' Finance Trust      
1.550% due 06/09/17 476 477 1.017% due 12/02/16 (Þ)(~) 500 498
Exxon Mobil Corp.       1.058% due 01/17/17 (Þ)(~) 500 498
0.693% due 03/15/17 (Ê) 1,750 1,749 PACCAR Financial Corp.      
        0.870% due 06/06/17 (Ê) 50 50

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 201

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)      
    Principal   Fair  
    Amount ($)   Value  
    or Shares   $  
Pfizer, Inc.          
0.776% due 05/15/17 (Ê) 1,380   1,381  
Procter & Gamble Co. (The)          
0.717% due 11/04/16 (Ê) 1,500   1,500  
Royal Bank of Canada          
Series YCD          
0.838% due 11/04/16 (Ê)(~) 300   300  
Russell U.S. Cash Management Fund   100,969,603 (8)   100,970  
Samsung Electronics America, Inc.          
1.750% due 04/10/17 (Þ) 765   768  
Shell International Finance BV          
0.836% due 11/15/16 (Ê) 1,825   1,826  
Sumitomo Mitsui Banking Corp.          
Series YCD          
0.862% due 12/19/16 (Ê)(~) 900   899  
Total Capital International SA          
1.000% due 08/12/16 485   485  
Toyota Motor Credit Corp.          
0.742% due 09/23/16 (Ê) 65   65  
UBS AG          
1.375% due 06/01/17 802   803  
United States Treasury Bills          
0.278% due 08/11/16 (ç)(~) 3,580   3,579  
0.259% due 09/15/16 (~) (§) 40   40  
0.270% due 09/15/16 (~) (§) 40   40  
0.233% due 09/29/16 (~) (§) 6   6  
0.270% due 10/13/16 (~) 2,465   2,464  
UnitedHealth Group, Inc.          
6.000% due 06/15/17 4   4  
Verizon Communications, Inc.          
Series FRN          
2.183% due 09/15/16 (Ê) 990   992  
Wachovia Corp.          
0.923% due 06/15/17 (Ê) 990   989  
Wells Fargo Bank NA          
Series CD          
1.080% due 04/13/17 (Ê)(~) 750   750  
Westpac Banking Corp.          
1.092% due 11/25/16 (Ê) 500   501  
Series YCD          
1.043% due 03/01/17 (Ê)(~) 750   750  
Xcel Energy, Inc.          
1.200% due 06/01/17 611   611  
Total Short-Term Investments          
(cost $154,686)       154,471  
 
Total Investments 106.4%          
(identified cost $1,033,014)       1,059,894  
 
Other Assets and Liabilities,          
Net - (6.4%)       (63,525 )
 
Net Assets - 100.0%       996,369  

 

See accompanying notes which are an integral part of this quarterly report.

202 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
          Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities   Date     or shares   $   $   $  
0.5%                      
Bayview Opportunity Master Fund Trust   07/15/16 123,000 100.00 123 123  
Caisse Centrale Desjardins   05/07/15 1,930,000 100.10 1,932 1,927  
CPS Auto Receivables Trust   07/18/16 983,000 100.00 983 983  
Dryden 37 Senior Loan Fund   01/29/15 810,000 100.00 810 810  
Enterprise Fleet Financing LLC   07/12/16 280,000 99.97 280 280  
Kaupthing Bank HF   02/17/16 100,000 — —   —  
Kaupthing Bank HF   02/17/16 1,210,000 — —   —  
Tengizchevroil Finance Co. International, Ltd.   07/20/16 245,000 99.29 243 244  
Verizon Owner Trust   07/12/16 199,000 99.98 199 199  
VOLT XLVIII LLC   07/15/16 100,000 100.00 100 100  
                      4,666  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.              

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 203

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)              
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
Australia 10 Year Treasury Bond Futures 393 AUD 53,976 09/16 768  
Long Gilt Futures 225 GBP 29,464 09/16 2,338  
United States 2 Year Treasury Note Futures 155 USD 33,945 09/16 57  
United States 5 Year Treasury Note Futures 345 USD 42,095 09/16 415  
United States 10 Year Treasury Note Futures 120 USD 15,966 09/16 222  
United States Long Bond Futures 87 USD 15,176 09/16 440  
Short Positions              
Canada 10 Year Government Bond Futures 117 CAD 17,372 09/16 26  
Euro-Bund Futures 202 EUR 33,897 09/16 (829 )
Japan 10 Year Treasury Bond Futures 20 JPY 3,052,000 09/16 (115 )
United States 2 Year Treasury Note Futures 26 USD 5,694 09/16 (4 )
United States 5 Year Treasury Note Futures 63 USD 7,687 09/16 (134 )
United States 10 Year Treasury Note Futures 15 USD 1,996 09/16 (8 )
United States 10 Year Ultra Bond Futures 15 USD 2,193 09/16 (79 )
United States Long Bond Futures 2 USD 349 09/16 (22 )
United States Ultra Bond Futures 69 USD 13,147 09/16 (1,105 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)           1,970  

 

Options Written            
Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
  Number of     Premiums  
    Contracts     Received  
Outstanding October 31, 2015 1   $ 159  
Opened —   —  
Closed (1 ) (159 )
Expired —   —  
Outstanding July 31, 2016 —   $ —  

 

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD   15 BRL 53 08/19/16 1  
Bank of America USD   44 BRL 145 08/19/16 1  
Bank of America USD   1,081 BRL 3,884 08/19/16 110  
Bank of America USD   — CZK 10 08/19/16 —  
Bank of America USD   76 CZK 1,821 08/19/16 —  
Bank of America USD   106 CZK 2,578 08/19/16 1  
Bank of America USD   2,219 CZK 52,755 08/19/16 (35 )
Bank of America USD   — HUF 138 08/19/16 —  
Bank of America USD   32 INR 2,158 08/19/16 —  
Bank of America USD   35 INR 2,376 08/19/16 —  
Bank of America USD   1,094 INR 74,163 08/19/16 15  
Bank of America USD   13 KRW 14,797 08/19/16 —  
Bank of America USD   38 KRW 44,781 08/19/16 4  
Bank of America USD   2,197 KRW 2,587,397 08/19/16 128  
Bank of America USD   30 PLN 115 08/19/16 —  
Bank of America USD   64 PLN 251 08/19/16 1  
Bank of America USD   116 PLN 461 08/19/16 3  
Bank of America USD   2,287 PLN 8,839 08/19/16 (20 )
Bank of America USD   — RUB 1 08/19/16 —  
Bank of America USD   38 RUB 2,541 08/19/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

204 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD 1,095 RUB 72,511 08/19/16 (1 )
Bank of America USD 29 SGD 39 08/19/16 —  
Bank of America USD 55 SGD 75 08/19/16 —  
Bank of America USD 12 TRY 34 08/19/16 —  
Bank of America USD 23 TRY 69 08/19/16 —  
Bank of America USD 30 TRY 88 08/19/16 (1 )
Bank of America USD 60 TRY 176 08/19/16 (2 )
Bank of America USD 1,112 TRY 3,373 08/19/16 12  
Bank of America USD 2,224 TRY 6,745 08/19/16 25  
Bank of America USD 30 ZAR 462 08/19/16 3  
Bank of America AUD 87 USD 65 08/31/16 (1 )
Bank of America AUD 2,643 USD 1,973 08/31/16 (34 )
Bank of America BRL 73 USD 22 08/19/16 —  
Bank of America BRL 105 USD 30 08/19/16 (3 )
Bank of America BRL 7,767 USD 2,161 08/19/16 (221 )
Bank of America CZK 20 USD 1 08/19/16 —  
Bank of America CZK 911 USD 38 08/19/16 —  
Bank of America CZK 1,289 USD 53 08/19/16 —  
Bank of America CZK 26,377 USD 1,109 08/19/16 18  
Bank of America HKD 221 USD 28 08/19/16 —  
Bank of America HKD 251 USD 32 08/19/16 —  
Bank of America HUF 7,201 USD 26 08/19/16 —  
Bank of America HUF 16,836 USD 59 08/19/16 (1 )
Bank of America HUF 307,923 USD 1,108 08/19/16 1  
Bank of America IDR 473,554 USD 36 08/19/16 —  
Bank of America IDR 702,073 USD 52 08/19/16 (1 )
Bank of America IDR 29,589,650 USD 2,188 08/19/16 (66 )
Bank of America MXN 356 USD 19 08/19/16 —  
Bank of America MXN 2,830 USD 149 08/19/16 (2 )
Bank of America MXN 39,980 USD 2,175 08/19/16 47  
Bank of America PHP 1,303 USD 28 08/19/16 —  
Bank of America PHP 5,679 USD 121 08/19/16 —  
Bank of America PHP 51,913 USD 1,112 08/19/16 19  
Bank of America PLN 115 USD 30 08/19/16 —  
Bank of America PLN 231 USD 60 08/19/16 1  
Bank of America SGD 19 USD 14 08/19/16 —  
Bank of America SGD 37 USD 28 08/19/16 —  
Bank of America SGD 1,524 USD 1,112 08/19/16 (25 )
Bank of America TRY 88 USD 29 08/19/16 —  
Bank of America TRY 175 USD 58 08/19/16 (1 )
Bank of America TWD 771 USD 24 08/19/16 —  
Bank of America TWD 783 USD 25 08/19/16 —  
Bank of America TWD 36,207 USD 1,110 08/19/16 (29 )
Bank of America ZAR 208 USD 14 08/19/16 (1 )
Bank of Montreal USD 1,942 AUD 2,564 08/19/16 6  
Bank of Montreal USD 7,750 JPY 815,829 08/19/16 250  
Bank of Montreal DKK 13,105 USD 1,951 08/19/16 (20 )
Bank of Montreal DKK 26,211 USD 3,902 08/19/16 (40 )
Commonwealth Bank of Australia USD 3,905 CAD 5,080 08/19/16 (14 )
Commonwealth Bank of Australia USD 7,811 CAD 10,160 08/19/16 (29 )
Commonwealth Bank of Australia CHF 1,925 USD 1,961 08/19/16 (27 )
Commonwealth Bank of Australia CHF 3,850 USD 3,922 08/19/16 (53 )
Royal Bank of Canada USD 1,901 NZD 2,681 08/19/16 34  
Royal Bank of Canada USD 7,604 NZD 10,726 08/19/16 135  
Royal Bank of Canada ILS 30,188 USD 7,828 08/19/16 (90 )
State Street USD 3,900 EUR 3,524 08/19/16 42  
State Street USD 3,917 GBP 2,960 08/19/16 1  
State Street USD 2,227 SGD 3,049 08/19/16 47  
State Street USD 1,052 ZAR 16,714 08/19/16 148  
State Street GBP 5,919 USD 7,834 08/19/16 (2 )
State Street HKD 8,633 USD 1,113 08/19/16 —  
State Street NOK 32,935 USD 3,885 08/19/16 (19 )
State Street SEK 16,601 USD 1,941 08/19/16 (1 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 205

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts        
Amounts in  thousands        
        Unrealized
        Appreciation
  Amount Amount   (Depreciation)
Counterparty Sold Bought Settlement Date $
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts     314

 

Total Return Swap Contracts (*)          
Amounts in thousands          
    Notional Termination Fair Value
Underlying Reference Entity Counterparty Amount Date $
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 13,613 09/30/16 84
Barclays U.S. Aggregate Total Return Value Unhedged          
USD Index Barclays USD 10,471 09/30/16 66
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       150

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fees were all based
on the 1 month LIBOR rate plus a fee of 0.23%.

Interest Rate Swap Contracts                
 
Amounts in thousands                  
              Termination Fair Value  
Counterparty Notional Amount Fund Receives Fund Pays   Date $  
Citigroup USD 1,390 Three Month LIBOR 2.714 %   08/15/42 (330 )
Citigroup USD 1,060 Three Month LIBOR 3.676 %   11/15/43 (484 )
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $— (å)       (814 )

 

Presentation of Portfolio Holdings                  
 
Amounts in thousands                    
 
        Fair Value            
              Practical        
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Long-Term Investments                    
Asset-Backed Securities $ — $ 74,702 $ 123 $ — $ 74,825
Corporate Bonds and Notes   —   241,678   481   —   242,159
International Debt   —   59,331   —   —   59,331
Loan Agreements   —   520   —   —   520
Mortgage-Backed Securities   —   305,703   441   —   306,144
Municipal Bonds   —   7,994   —   —   7,994
Non-US Bonds   —   2,020   —   —   2,020
United States Government Agencies   —   10,274   —   —   10,274
United States Government Treasuries   —   201,220   —   —   201,220
Preferred Stocks 936 — — — 936
Short-Term Investments — 51,603 1,898 100,970 154,471
Total Investments 936 955,045 2,943 100,970 1,059,894
 
 
Other Financial Instruments                    
Assets                    

 

See accompanying notes which are an integral part of this quarterly report.

206 Russell Investment Grade Bond Fund

 

Russell Investment Company
Russell Investment Grade Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                  Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Futures Contracts 4,266   —   — —   4,266  
Foreign Currency Exchange Contracts —   1,053   — —   1,053  
Total Return Swap Contracts —   150   — —   150  
Liabilities                            
Futures Contracts (2,296 ) —   — —   (2,296 )
Foreign Currency Exchange Contracts —   (739 ) — —   (739 )
Interest Rate Swap Contracts —   (814 ) — —   (814 )
Total Other Financial Instruments* $ 1,970   $ (350 ) $ — $ — $   1,620  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Russell Investment Grade Bond Fund 207

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Long-Term Investments - 92.5%           1.380% due 08/15/18 (Þ) 1,925 1,925
Asset-Backed Securities - 6.5%           Education Loan Asset-Backed Trust I          
Ally Auto Receivables Trust           Series 2013-1 Class B1          
Series 2016-2 Class A2           1.439% due 11/25/33 (Ê)(Þ) 2,435 2,228
1.170% due 10/15/18 1,380 1,382 Equity One Mortgage Pass-Through Trust        
AmeriCredit Automobile Receivables           Series 2003-4 Class M1          
Trust           5.243% due 10/25/34 208 201
Series 2013-2 Class B           Exeter Automobile Receivables Trust          
1.190% due 05/08/18 262 262 Series 2014-3A Class A          
Series 2014-1 Class A3           1.320% due 01/15/19 (Þ) 710 709
0.900% due 02/08/19 320 320 Federal Home Loan Mortgage Corp.          
Series 2015-1 Class A2A           Structured Pass Through Securities          
 
0.770% due 04/09/18 27 27 Series 2000-30 Class A5      
Series 2015-2 Class A2A           7.133% due 12/25/30     1,802 1,939
0.830% due 09/10/18 949 948 Ford Credit Auto Owner Trust          
 Bank of  The West Auto Trust           Series 2015-A Class A3          
Series 2014-1 Class A3           1.280% due 09/15/19 1,135 1,138
1.090% due 03/15/19 (Þ) 1,665 1,665 GM Financial Automobile Leasing Trust          
            Series 2015-1 Class A2          
 
Series 2015-1 Class A3       1.100% due 12/20/17 887 887
1.310% due 10/15/19 (Þ)     3,065 3,067            
 
California Republic Auto Receivables           Series 2015-3 Class A3      
Trust           1.690% due 03/20/19     1,950 1,963
Series 2016-1 Class A4           Series 2016-2 Class A3          
2.240% due 10/15/21 835 850 1.620% due 09/20/19 465 467
Capital Auto Receivables Asset Trust           Hertz Fleet Lease Funding, LP          
Series 2013-1 Class B           Series 2013-3 Class C          
1.290% due 04/20/18 691 691 1.616% due 12/10/27 (Ê)(Þ) 2,240 2,241
Series 2016-1 Class A2A           Series 2014-1 Class C          
1.500% due 11/20/18 545 546 1.316% due 04/10/28 (Ê)(Þ) 1,475 1,473
CarFinance Capital Auto Trust           Honda Auto Receivables Owner Trust          
Series 2014-1A Class A           Series 2014-4 Class A3          
1.460% due 12/17/18 (Þ) 147 147 0.990% due 09/17/18 2,416 2,417
CarMax Auto Owner Trust           Huntington Auto Trust          
Series 2016-2 Class A3           Series 2015-1 Class A3          
1.520% due 02/16/21 855 860 1.240% due 09/16/19 1,920 1,923
Series 2016-3 Class A2           Hyundai Auto Receivables Trust          
1.170% due 08/15/19 1,725 1,725 Series 2015-A Class A2          
CCG Receivables Trust           0.680% due 10/16/17 54 54
Series 2014-1 Class A2           Series 2016-A Class A2A          
1.060% due 11/15/21 (Þ) 416 415 1.210% due 06/17/19 815 817
Chesapeake Funding LLC           JCP&L Transition Funding LLC          
Series 2012-2A Class C           Series 2002-A Class A4          
1.749% due 05/07/24 (Ê)(Þ) 2,695 2,695 6.160% due 06/05/19 52 53
CPS Auto Receivables Trust           John Deere Owner Trust          
Series 2014-D Class A           Series 2015-B Class A3          
1.490% due 04/15/19 (Þ) 1,214 1,214 1.440% due 10/15/19 1,440 1,446
Credit-Based Asset Servicing and           MMAF Equipment Finance LLC          
Securitization LLC           Series 2016-AA Class A2          
Series 2006-SC1 Class A           1.770% due 12/17/18 (Þ) 1,030 1,030
0.455% due 05/25/36 (Ê)(Þ) 211 208 MSCC Heloc Trust          
CWABS, Inc. Asset-Backed Certificates           Series 2007-1 Class A          
Trust                  
Series 2007-4 Class A2           0.539% due 12/25/31 (Ê)     481 477
        Nissan Auto Receivables Owner Trust          
5.340% due 04/25/47     12 12 Series 2014-A Class A3          
Drive Auto Receivables Trust                  
Series 2015-DA Class A2B           0.720% due 08/15/18     933 932
        Prestige Auto Receivables Trust          
1.066% due 06/15/18 (Ê)(Þ)     225 225 Series 2014-1A Class A3          
Series 2016-BA Class A2                  
            1.520% due 04/15/20 (Þ)     1,206 1,207

 

See accompanying notes which are an integral part of this quarterly report.

208 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Series 2016-1A Class A2           1.900% due 02/01/19 2,650 2,693
1.780% due 08/15/19 (Þ) 1,470 1,473 2.150% due 02/01/19 1,085 1,109
Renaissance Home Equity Loan Trust           Apple, Inc.          
Series 2005-4 Class A3                  
        2.100% due 05/06/19     1,085 1,115
5.565% due 02/25/36     54 53 Assurant, Inc.          
Santander Drive Auto Receivables Trust                  
Series 2012-5 Class C           2.500% due 03/15/18     1,025 1,038
 
2.700% due 08/15/18 1,341 1,344 AT&T, Inc.      
Series 2012-6 Class D           1.400% due 12/01/17     965 966
2.520% due 09/17/18 400 403 5.500% due 02/01/18 3,737 3,969
SLM Private Education Loan Trust           Australia & New Zealand Banking          
Series 2010-A Class 2A           Group, Ltd.          
        Series GMTN          
3.683% due 05/16/44 (Ê)(Þ)     1,770 1,827        
Social Finance, Inc.           1.500% due 01/16/18     1,085 1,090
Series 2016-C Class A2B           Bank of America Corp.          
0.550% due 12/25/32 (Å) 1,150 1,146 1.700% due 08/25/17 1,775 1,781
SoFi Professional Loan Program LLC           2.000% due 01/11/18 800 805
Series 2014-B Class A2           Series GMTN          
2.550% due 08/27/29 (Þ) 1,197 1,207 2.625% due 04/19/21 665 678
Series 2016-B Class A2A           Bank of New York Mellon Corp. (The)          
1.680% due 03/25/31 (Þ) 1,779 1,781 Series G          
SunTrust Auto Receivables Trust           2.200% due 05/15/19 575 589
Series 2015-1A Class A2           Barrick NA Finance LLC          
0.990% due 06/15/18 (Þ) 1,026 1,026 4.400% due 05/30/21 1,520 1,664
          53,046 BB&T Corp.          
Corporate Bonds and Notes - 16.8%       2.250% due 02/01/19 1,760 1,801
AbbVie, Inc.           Berkshire Hathaway Finance Corp.          
1.750% due 11/06/17 1,878 1,888 1.450% due 03/07/18 935 942
2.500% due 05/14/20 480 493 BMW US Capital LLC          
Aetna, Inc.           1.500% due 04/11/19 (Þ) 1,570 1,580
1.900% due 06/07/19 1,300 1,317 Capital One Financial Corp.          
Air Lease Corp.           2.450% due 04/24/19 1,060 1,084
2.125% due 01/15/18 805 804 Cardinal Health, Inc.          
Albemarle Corp.           1.950% due 06/15/18 525 531
Series 5YR           Caterpillar Financial Services Corp.          
3.000% due 12/01/19 845 861 Series GMTN          
Altria Group, Inc.           1.700% due 06/16/18 1,300 1,318
4.750% due 05/05/21 794 911 Charter Communications Operating LLC          
Amazon.com, Inc.           / Charter Communications Operating          
        Capital          
2.600% due 12/05/19     745 778        
American Airlines, Inc. 1st Lien Term           4.464% due 07/23/22 (Þ)     620 673
Loan B           Chevron Corp.          
3.500% due 04/28/23 (Ê) 500 498 1.718% due 06/24/18 615 623
American Express Centurion Bank           1.790% due 11/16/18 955 969
Series BKN1                  
        1.561% due 05/16/19     1,070 1,080
6.000% due 09/13/17     870 916        
American Honda Finance Corp.           1.961% due 03/03/20     440 451
 
    1.500% due 03/13/18 725 731 2.100% due 05/16/21 350 358
        Citigroup, Inc.          
1.600% due 07/13/18     1,700 1,718        
        1.850% due 11/24/17     2,570 2,583
1.200% due 07/12/19     1,015 1,015        
American International Group, Inc.           1.800% due 02/05/18     900 904
        Compass Bank          
5.850% due 01/16/18     825 879 Series BKNT          
American Tower Trust I                  
Series 2013-13 Class 1A           6.400% due 10/01/17     1,270 1,333
        ConocoPhillips Co.          
1.551% due 03/15/18 (Þ)     1,165 1,160        
            1.050% due 12/15/17     1,424 1,417
Anheuser-Busch InBev Finance, Inc.           1.500% due 05/15/18 1,395 1,395

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 209

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
 
Crown Castle Towers LLC       International Business Machines Corp.      
6.113% due 01/15/20 (Þ)     1,410 1,571 5.700% due 09/14/17     560 590
CVS Health Corp.           1.800% due 05/17/19 530 540
2.750% due 12/01/22 660 689 International Lease Finance Corp.          
Daimler Finance NA LLC           3.875% due 04/15/18 800 824
1.375% due 08/01/17 (Þ) 1,165 1,164 IPALCO Enterprises, Inc.          
1.500% due 07/05/19 (Å) 735 735 5.000% due 05/01/18 300 315
2.000% due 07/06/21 (Å) 410 412 Johnson & Johnson          
DCP Midstream Operating, LP           5.550% due 08/15/17 1,085 1,137
2.500% due 12/01/17 1,680 1,662 JPMorgan Chase & Co.          
Devon Energy Corp.           1.800% due 01/25/18 560 565
2.250% due 12/15/18 970 970 1.625% due 05/15/18 700 705
Diamond 1 Finance Corp. / Diamond 2                  
            2.350% due 01/28/19     2,190 2,238
Finance Corp                      
 
4.420% due 06/15/21 (Þ) 550 575 Series H      
        1.700% due 03/01/18     1,055 1,063
5.450% due 06/15/23 (Þ)     370 392 Kinder Morgan Energy Partners, LP          
Ecolab, Inc.           3.500% due 03/01/21 450 459
4.350% due 12/08/21 560 632 Kraft Heinz Foods Co.          
EnLink Midstream Partners, LP           2.800% due 07/02/20 (Þ) 1,610 1,681
2.700% due 04/01/19 310 304        
            4.875% due 02/15/25 (Þ)     605 668
ERAC USA Finance LLC                      
 
2.800% due 11/01/18 (Þ) 2,075 2,126 Kraton Polymers LLC      
            6.000% due 01/06/22 (Ê)     197 196
Exelon Corp.           Lehman Brothers Holdings Capital Trust          
2.850% due 06/15/20 650 675 VII          
Ford Motor Credit Co. LLC           5.857% due 11/29/49 (ƒ)(Ø)(Æ) 270 —
1.724% due 12/06/17 400 402 Lockheed Martin Corp.          
2.551% due 10/05/18 925 942 3.350% due 09/15/21 590 635
2.012% due 05/03/19 1,110 1,119 Marathon Oil Corp.          
General Electric Capital Corp.           2.700% due 06/01/20 1,485 1,414
1.625% due 04/02/18 995 1,008 Medtronic, Inc.          
General Electric Co.           Series WI          
5.250% due 12/06/17 1,385 1,464 2.500% due 03/15/20 1,525 1,587
General Mills, Inc.           MetLife, Inc.          
1.400% due 10/20/17 2,670 2,684 1.756% due 12/15/17 1,130 1,138
        Metropolitan Life Global Funding I          
5.650% due 02/15/19     985 1,095        
General Motors Financial Co., Inc.           1.950% due 12/03/18 (Þ)     755 766
        Microsoft Corp.          
2.400% due 04/10/18     530 534        
        1.300% due 11/03/18     925 932
2.400% due 05/09/19     2,035 2,046 Morgan Stanley          
Gilead Sciences, Inc.                  
        2.200% due 12/07/18     1,865 1,886
2.550% due 09/01/20     825 858        
Goldman Sachs Group, Inc. (The)           2.800% due 06/16/20     1,075 1,107
        Mylan, Inc.          
2.625% due 01/31/19     2,545 2,606        
        2.550% due 03/28/19     665 678
2.000% due 04/25/19     425 429 Newell Brands, Inc.          
2.750% due 09/15/20 1,055 1,083 3.150% due 04/01/21 800 839
Harris Corp.           Numericable US LLC          
1.999% due 04/27/18 675 679 5.000% due 01/31/24 (Ê) 748 749
Hewlett Packard Enterprise Co.           Oracle Corp.          
2.450% due 10/05/17 (Þ) 1,325 1,341 1.900% due 09/15/21 620 622
Home Depot, Inc. (The)           PepsiCo, Inc.          
2.000% due 04/01/21 620 637 5.000% due 06/01/18 570 611
Huntington National Bank (The)           Pfizer, Inc.          
2.200% due 11/06/18 830 841 6.200% due 03/15/19 600 677
Hyundai Capital America           Pharmaceutical Product Development          
2.000% due 07/01/19 (Þ) 430 433 LLC          

 

See accompanying notes which are an integral part of this quarterly report.

210 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
4.250% due 08/18/22 (Ê) 1,123 1,122 1.750% due 05/30/18 895 903
Pharmacia LLC           Wal-Mart Stores, Inc.          
6.500% due 12/01/18 1,085 1,216 1.950% due 12/15/18 920 943
PNC Bank NA           Wells Fargo & Co.          
Series BKNT           2.125% due 04/22/19 2,000 2,043
1.850% due 07/20/18 1,360 1,376 Williams Partners, LP          
Pricoa Global Funding I           4.125% due 11/15/20 502 509
1.350% due 08/18/17 (Þ) 940 942 XTO Energy, Inc.          
Principal Life Global Funding II           6.250% due 08/01/17 900 948
1.500% due 09/11/17 (Þ) 1,175 1,179 ZFS Finance USA Trust V          
PSEG Power LLC           6.500% due 05/09/37 (Þ) 325 327
2.450% due 11/15/18 1,150 1,168           138,626
Quebecor World Capital Corp.           International Debt - 4.3%          
4.875% due 01/02/49 (Ø)(Þ)(Æ) 205 — AP NMT Acquisition BV 1st Lien Term          
        Loan          
6.125% due 11/15/49 (Ø)(Æ)     70 —        
Quincy Newspapers, Inc. 1st Lien Term           6.750% due 08/13/21 (Ê)     491 408
Loan B           AstraZeneca PLC          
5.500% due 11/02/22 (Ê) 980 983 2.375% due 11/16/20 920 945
QVC, Inc.           BP Capital Markets PLC          
3.125% due 04/01/19 785 807 1.375% due 05/10/18 505 506
Reynolds American, Inc.           Braskem Finance, Ltd.          
6.875% due 05/01/20 695 823 7.000% due 05/07/20 (Þ) 780 837
 
3.250% due 06/12/20 744 787 British Telecommunications PLC      
SABMiller Holdings, Inc.           5.950% due 01/15/18     545 582
 
3.750% due 01/15/22 (Þ) 735 798 Burger King      
SBA Tower Trust           3.750% due 12/12/21 (Ê)     1,315 1,320
Series 2014-1A           Canadian Imperial Bank of Commerce/          
        Canada          
2.898% due 10/15/19 (Þ)     1,415 1,433        
Solera LLC 1st Lien Term Loan B           1.550% due 01/23/18     1,499 1,505
        Canadian Oil Sands, Ltd.          
5.750% due 03/04/23 (Ê)     470 474        
Southern Co. (The)           4.500% due 04/01/22 (Þ)     500 515
        Credit Suisse Group Funding Guernsey,          
2.150% due 09/01/19     520 531 Ltd.          
Southern Power Co.                  
Series 15A           3.800% due 06/09/23 (Þ)     750 761
        Delta 2 Lux Sarl 2nd Lien Term Loan B          
1.500% due 06/01/18     1,075 1,079        
            7.750% due 07/29/22 (Ê)     250 245
 
Starbucks Corp.       Delta 2 Lux Sarl Covenant-Lite Term          
2.100% due 02/04/21     460 476 Loan B3          
Thomson Reuters Corp.           4.750% due 07/30/21 (Ê) 2,250 2,223
6.500% due 07/15/18 685 749 Ensco PLC          
Time Warner, Inc.           4.700% due 03/15/21 585 497
4.750% due 03/29/21 527 593 European Investment Bank          
Toyota Motor Credit Corp.           Series DIP          
1.200% due 04/06/18 1,010 1,014 1.125% due 08/15/19 1,085 1,088
1.700% due 02/19/19 950 963 Expro Financial Services SARL Term          
 Series GMTN           Loan B          
1.129% due 07/13/18 (Ê) 785 787 5.750% due 09/02/21 (Ê) 786 590
 US Bancorp           HSBC Holdings PLC          
2.200% due 04/25/19 965 990 2.950% due 05/25/21 505 514
 
Verizon Communications, Inc.       Mood Media Corp. 1st Lien Term Loan B  978 894
6.100% due 04/15/18     810 877  7.000% due 05/01/19 (Ê)          
        Mylan NV          
2.406% due 09/14/18 (Ê)     100 103        
        3.150% due 06/15/21 (Þ)     1,215 1,253
3.650% due 09/14/18     1,715 1,802 Noble Holding International, Ltd.          
1.375% due 08/15/19 1,025 1,025 5.000% due 03/16/18 595 573
4.500% due 09/15/20 1,455 1,618 Perrigo Co. PLC          
Walgreens Boots Alliance, Inc.                      

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 211

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
2.300% due 11/08/18 745 748 ABG Intermediate Holdings 2, LLC 1st          
            Lien Term Loan          
 
Perrigo Finance Unlimited Co.       5.500% due 05/27/21 (Ê) 461 456
3.500% due 03/15/21     1,465 1,519 ABG Intermediate Holdings, LLC 2nd          
Petroleos Mexicanos           Lien Term Loan          
5.500% due 02/04/19 (Þ) 390 412 9.000% due 05/27/22 (Ê) 500 485
Series WI           Active Network, Inc. 1st Lien Term          
3.500% due 07/23/20 265 267 Loan B          
Playa Resorts Holding BV 1st Lien Term         5.500% due 11/15/20 (Ê) 977 970
Loan B           Albertsons LLC 1st Lien Term Loan B4          
4.000% due 08/09/19 (Ê) 249 247 4.500% due 08/22/21 (Ê) 1,493 1,500
Royal Bank of Canada           Alvogen Pharmaceutical US, Inc. Term          
Series GMTN           Loan          
1.800% due 07/30/18 1,310 1,322 6.000% due 04/02/22 (Ê) 835 835
Royal Bank of Scotland Group PLC           American Airlines, Inc. 1st Lien Term          
4.700% due 07/03/18 1,025 1,052 Loan          
Shell International Finance BV           3.250% due 05/21/20 (Ê) 1,471 1,465
1.625% due 11/10/18 810 817 Ancestry.com, Inc. Term Loan          
2.125% due 05/11/20 535 548 5.000% due 08/29/22 (Ê) 1,496 1,500
        AP Gaming I LLC 1st Lien Term Loan B          
1.875% due 05/10/21     315 317        
            9.250% due 12/20/20 (Ê)     494 462
 
SkillsSoft Corp. 1st Lien Term Loan       Arbor Pharmaceuticals, Inc. 1st Lien          
5.750% due 04/28/21 (Ê)     737 606 Term Loan B          
Sky PLC           6.000% due 06/28/23 1,000 980
6.100% due 02/15/18 (Þ) 865 921 Arctic Glacier USA, Inc. 1st Lien Term          
SMART ABS Trust           Loan B          
Series 2015-3US Class A3A           6.000% due 05/13/19 (Ê) 494 476
1.660% due 08/14/19 865 863 AssuredPartners, Inc. 1st Lien Term          
Stena International SA Covenant-Lite           Loan          
Term Loan B           Series 2015          
4.000% due 03/03/21 (Ê) 978 823 5.750% due 10/21/22 (Ê) 293 293
Teva Pharmaceutical Finance           Asurion LLC Covenant-Lite Term Loan          
Netherlands III BV           B1          
1.700% due 07/19/19 755 759 5.000% due 05/24/19 (Ê) 484 484
2.200% due 07/21/21 920 925 Asurion LLC Term Loan B4          
Toronto-Dominion Bank (The)           5.000% due 08/04/22 (Ê) 489 490
1.400% due 04/30/18 970 974 Avago Technologies Cayman Finance,          
        Ltd. 1st Lien Term Loan B1          
2.125% due 04/07/21     830 845        
            4.250% due 02/01/23 (Ê)     1,526 1,526
Series GMTN                      
 
1.750% due 07/23/18 845 855 Avaya, Inc. Term Loan B7      
            6.250% due 05/29/20 (Ê)     985 741
Total Capital Canada, Ltd.           B&G Foods, Inc. Term Loan B          
1.450% due 01/15/18 975 980    Series 2015          
Trade MAPS 1, Ltd.           3.750% due 10/05/22 (Ê) 853 857
Series 2013-1A Class A                      
 
1.174% due 12/10/18 (Ê)(Þ) 2,190 2,183 BioScrip, Inc. 1st Lien Term Loan B      
            6.500% due 07/31/20 (Ê)     76 72
Travelport Finance Sarl Term Loan B                      
 
5.750% due 09/02/21 985 986 BioScrip, Inc. Term Loan      
            6.500% due 07/31/20 (Ê)     46 43
UBS AG           BMC Software Finance, Inc. 1st Lien          
Series BKNT           Term Loan B          
5.875% due 12/20/17 820 871 5.000% due 09/10/20 (Ê) 992 910
Virgin Media Investment Holdings, Ltd.           BWAY Holding Co. 1st Lien Term Loan          
1st Lien Term Loan F           B          
3.649% due 06/30/23 (Ê) 505 503 5.500% due 08/14/20 (Ê) 1,431 1,430
          35,599 Caesars Entertainment Corp. 1st Lien          
Loan Agreements - 13.1%           Term Loan B          
 
Abacus Innovations Corp. Term Loan B       7.000% due 10/11/20 (Ê) 1,247 1,217
1.000% due 01/26/23 (v)     1,250 1,252 Camping World, Inc. 1st Lien Term          
            Loan B          

 

See accompanying notes which are an integral part of this quarterly report.

212 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
5.250% due 02/20/20 (Ê) 886 885 Dell, Inc. Term Loan B          
Cast & Crew Payroll LLC 1st Lien Term           4.000% due 05/24/23 1,000 1,000
Loan           Delta Air Lines, Inc. Term Loan B          
8.750% due 08/03/22 (Ê) 500 495 3.250% due 08/12/22 993 994
Cengage Learning, Inc., Term Loan B           Eastman Kodak Co., Exit Term Loan          
5.250% due 06/07/23 (Ê) 578 577 7.250% due 09/03/19 (Ê) 964 947
Charter Communications Operating LLC,         Emerald US, Inc. Term Loan B1          
Term Loan H                  
        5.000% due 05/09/21     1,000 910
3.250% due 08/24/21 (Ê)     2,226 2,232 EnergySolutions LLC 1st Lien Term          
Checkout Holding Corp. Covenant-Lite           Loan B          
1st Lien Term Loan B                  
        6.750% due 05/29/20 (Ê)     795 789
4.500% due 04/09/21 (Ê)     980 834 Entegris, Inc. 1st Lien Term Loan B          
Chelsea Petroleum Products I LLC 1st                  
Lien Term Loan B           3.500% due 04/30/21 (Ê)     327 328
 
5.250% due 10/28/22 (Ê) 750 748 First Data Corp. 1st Lien Term Loan B      
Chrysler Group LLC 1st Lien Term           4.177% due 07/10/22 (Ê)     1,375 1,379
 
Loan B       FPC Holdings, Inc. 1st Lien Term Loan      
3.250% due 12/31/18 (Ê)     1,403 1,405 5.250% due 11/27/19 (Ê)     494 413
CHS/Community Health Systems, Inc.           FullBeauty Brands Holdings Corp. 1st          
1st Lien Term Loan G           Lien Term Loan B          
3.750% due 12/31/19 (Ê) 603 593 5.750% due 10/14/22 (Ê) 748 707
Ciena Corp. 1st Lien Term Loan B           GCI Holdings, Inc. Term B Loan          
4.250% due 04/25/21 (Ê) 250 251 4.000% due 02/02/22 (Ê) 988 981
Cincinnati Bell, Inc. 1st Lien Term           GENEX Holdings, Inc. 1st Lien Term          
Loan B           Loan B          
4.000% due 09/10/20 (Ê) 237 237 5.250% due 05/30/21 (Ê) 982 970
Cinemark USA, Inc., Term Loan B           GENEX Holdings, Inc. 2nd Lien Term          
 
3.320% due 05/08/22 (Ê) 1,000 1,004 Loan      
Cision, Inc. Term Loan B           8.750% due 05/30/22 (Ê)     250 237
        Getty Images, Inc. Covenant-Lite 1st          
7.000% due 05/12/23     1,000 954 Lien Term Loan B          
Commercial Barge Line Co. Term Loan                  
        4.750% due 10/18/19 (Ê)     982 770
9.750% due 11/12/20 (Ê)     879 822 Global Healthcare Exchange LLC, New          
Communications Sales & Leasing, Inc.           Term Loan B          
1st Lien Term Loan B                  
        5.250% due 08/13/22 (Ê)     993 993
5.000% due 10/16/22 (Ê)     1,485 1,483 Go Daddy Operating Co. LLC Term Loan        
Community Health Systems, Inc. Term                  
Loan H           4.250% due 05/13/21 (Ê)     980 982
        Harland Clarke Holdings Corp.          
4.000% due 01/27/21 (Ê)     1,110 1,096 Covenant-Lite 1st Lien Term Loan B4        
Compuware Corp. 1st Lien Term Loan B1                
        6.000% due 08/04/19 (Ê)     1,415 1,373
6.250% due 12/15/19 (Ê)     925 913 Hawaiian Telcom Communications, Inc.          
Consolidated Communications, Inc. Term         Term Loan B          
Loan B                  
        5.000% due 06/06/19 (Ê)     1,231 1,230
4.250% due 12/23/20 (Ê)     977 979 Hilton Worldwide Finance LLC Term          
ConvergeOne Holdings Corp. Covenant-           Loan          
Lite 1st Lien Term Loan                  
        3.500% due 10/25/20 (Ê)     1,351 1,354
6.000% due 06/17/20 (Ê)     980 946 Indigo Merger Sub I, Inc. 1st Lien Term          
CPI Card Group, Inc. 1st Lien Term           Loan          
Loan B                  
        4.750% due 07/08/21 (Ê)     980 976
6.750% due 08/17/22 (Ê)     718 698 Informatica Corp. Term Loan          
Creative Artists Agency, LLC Term                  
Loan B           4.500% due 06/03/22 (Ê)     993 978
        Intrawest Operations Group, LLC 1st          
5.500% due 12/17/21 (Ê)     986 987 Lien Term Loan B          
CSRA, Inc. Term Loan B                  
        4.750% due 12/09/20 (Ê)     692 694
3.750% due 10/29/22 (Ê)     980 984 IPC Corp. 2nd Lien Term Loan          
Cvent, Inc. Term Loan                  
        10.500% due 02/06/22 (Ê)     500 392
1.000% due 06/03/23 (v)     500 500 J Crew Group, Inc. Covenant-Lite 1st          
Dell International LLC 1st Lien Term           Lien Term Loan B          
Loan B2                  
        4.000% due 03/05/21 (Ê)     494 350
4.000% due 04/29/20 (Ê)     1,488 1,488            

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 213

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Lannett Co., Inc., Term Loan A           Pinnacle Foods Finance LLC Term Loan          
 
5.750% due 11/25/20 (Ê) 484 472 H      
Las Vegas Sands LLC 1st Lien Term           3.000% due 04/29/20 (Ê)     1,240 1,240
Loan B           PowerTeam Services, LLC 2nd Lien          
 
3.250% due 12/19/20 (Ê) 1,240 1,241 Term Loan      
Level 3 Financing, Inc. Term Loan B2           8.250% due 11/06/20 (Ê)     500 490
        Pre-Paid Legal Services, Inc. 2nd Lien          
3.500% due 05/31/22 (Ê)     750 752 Term Loan          
LTS Buyer LLC  Term Loan                  
        10.250% due 07/01/20 (Ê)     500 495
4.000% due 04/13/20 (Ê)     990 989 Prime Security Services Borrower LLC          
MacDermid, Inc., 1st Lien Term Loan           Term Loan B1          
4.500% due 06/07/20 (Ê) 795 795 5.500% due 04/21/22 (Ê) 125 126
Match Group, Inc. Term Loan V1           Prolampac Intermediate, Inc. 1st Lien          
5.500% due 10/27/22 (Ê) 396 399 Term Loan          
 
MCC Iowa LLC 1st Lien Term Loan H       5.000% due 06/30/22 (Ê) 993 992
3.250% due 01/29/21 (Ê)     987 986 Realogy Group LLC 1st Lien Term Loan          
Media General, Inc. 1st Lien Term Loan           B          
B           3.750% due 07/14/22 (Ê) 500 503
4.000% due 07/31/20 (Ê) 915 915 Renaissance Learning, Inc. 1st Lien          
Mergermarket USA, Inc. 1st Lien Term           Term Loan          
Loan           4.500% due 04/09/21 (Ê) 978 969
4.500% due 02/04/21 (Ê) 874 852 RentPath, Inc. 1st Lien Term Loan          
MGM Growth Properties Operating           6.250% due 12/17/21 (Ê) 1,970 1,832
 Partnership, LP 1st Lien Term Loan B 
4.000% due 04/25/23 (Ê) 998 1,004 RHP Hotel Properties Term Loan B 980 981
 
Minerals Technologies, Inc. Term Loan B        3.500% due 01/15/21 (Ê)          
3.750% due 05/09/21 (Ê)     582 584 Rovi Solutions Corp. Covenant-Lite 1st Lien Term Loan B          
MRI Software LLC Term Loan           3.750% due 07/02/21 (Ê) 980 973
 
5.250% due 06/18/21 495 492 Royal Oak Enterprises LLC Term Loan B       
MSC.Software Corp. 1st Lien Term Loan       1.000% due 06/16/23 (v)     750 748
5.000% due 05/29/20 (Ê)     980 943  RP Crown Parent LLC 1st Lien Term          
            Loan B          
MTL Publishing LLC Term Loan           6.000% due 12/21/18 (Ê) 977 945
 Series 2015       RPI Finance Trust 1st Lien Term Loan          
4.000% due 08/20/22 (Ê)     956 956 B4          
MultiPlan, Inc. 1st Lien Term Loan B                  
        3.500% due 12/11/20     987 992
5.000% due 05/25/23 (Ê)     750 758 Samsonite International SA Term Loan B        
Navistar, Inc. 1st Lien Term Loan B                  
        4.000% due 04/05/23     1,000 1,010
6.500% due 08/07/20 (Ê)     498 468 Scientific Games International, Inc.          
NBTY, Inc. 1st Lien Term Loan B           Covenant-Lite 1st Lien Term Loan B1        
5.000% due 05/05/23 (Ê) 500 498 6.000% due 10/18/20 (Ê) 1,717 1,715
Neptune Finco Corp. Term Loan B           Scientific Games International, Inc. Term Loan B2        
Series 2015           6.000% due 10/01/21 (Ê)          
5.000% due 10/09/22 (Ê) 1,347 1,355 SCS Holdings, Inc. 1st Lien Term Loan 690 689
New Millennium Holdco, Inc. Term Loan
7.500% due 12/21/20 (Ê) 506 357 6.000% due 10/30/22 (Ê) 989 994
 
NVA Holdings, Inc. 2nd Lien Term Loan       SeaWorld Parks & Entertainment, Inc.          
8.000% due 08/14/22 (Ê)     250 248 1st Lien Term Loan B3          
PET Acquisition Merger Sub LLC Term           1.000% due 05/14/20 (Ê)(v) 1,250 1,251
Loan           Signode Industrial Group US, Inc.          
 
5.750% due 01/26/23 (Ê) 391 393 Covenant-Lite 1st Lien Term Loan B      
PetSmart, Inc. 1st Lien Term Loan B           3.750% due 05/01/21 (Ê)     600 597
        SIRVA Worldwide, Inc. 1st Lien Term          
4.250% due 03/10/22 (Ê)     988 989            
PGX Holdings, Inc. Covenant-Lite 1st           Loan          
Lien Term Loan           7.500% due 03/27/19 (Ê) 477 471
5.750% due 08/21/20 (Ê) 475 473 SolarWinds Holdings, Inc. Term Loan          
Pinnacle Entertainment, Inc. Term Loan           6.500% due 02/05/23 (Ê) 150 151
B           SourceHOV LLC 1st Lien Term Loan B          
3.250% due 04/28/23 250 250 7.750% due 10/31/19 (Ê) 472 371

 

See accompanying notes which are an integral part of this quarterly report.

214 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Steak N' Shake Operations, Inc. 1st Lien         Series 2006-A Class 1A1          
Term Loan B           2.816% due 02/20/36 (Ê) 350 343
4.750% due 03/19/21 (Ê) 729 714 Series 2006-F Class 1A2          
Sungard Availability Services Capital,                  
Inc. Covenant-Lite 1st Lien Term           2.606% due 07/20/36 (Ê)     28 21
Loan B           Banc of America Large Loan Trust          
        Series 2009-FDG Class A          
6.000% due 03/31/19 (Ê)     467 395        
TCH-2 Holdings, LLC 1st Lien Term           5.204% due 01/25/42 (Þ)     635 637
Loan           Banc of America Merrill Lynch          
        Commercial Mortgage, Inc.          
5.500% due 05/12/21 (Ê)     985 985 Series 2005-3 Class AM          
Telenet Financing USD LLC, Term Loan                  
AD           4.727% due 07/10/43     258 257
        Series 2007-2 Class A4          
4.250% due 06/30/24 (Ê)     500 501        
TerraForm AP Acquisition Holdings           5.790% due 04/10/49     324 328
LLC, Term Loan B           Banc of America Re-REMIC Trust          
 
7.000% due 06/26/22 (Ê) 935 912 Series 2010-UB5 Class A4A      
T-Mobile USA, Inc. 1st Lien Term Loan           5.649% due 02/17/51 (Þ)     1,737 1,747
B           BCAP LLC Trust          
3.500% due 11/09/22 (Ê) 1,248 1,254 Series 2011-R11 Class 15A1          
 
Tribune Media Co. 1st Lien Term Loan B        2.739% due 10/26/33 (Ê)(Þ) 812 818
3.750% due 12/27/20 (Ê)     833 835 Series 2011-R11 Class 20A5          
TruGreen Limited Partnership 1st Lien           2.736% due 03/26/35 (Ê)(Þ) 355 355
Term Loan B           Bear Stearns ARM Trust          
6.500% due 03/29/23 750 756 Series 2004-5 Class 2A          
United Airlines, Inc. Term Loan B1           3.174% due 07/25/34 (Ê) 440 438
3.500% due 09/15/21 (Ê) 386 385 Bear Stearns Commercial Mortgage          
Valeant Pharmaceuticals International,           Securities Trust          
Inc. 1st Lien Term Loan BF1           Series 2004-PWR5 Class L          
3.750% due 04/02/22 (Ê) 577 573 4.693% due 07/11/42 (Þ) 416 405
Varsity Brands, Inc. 1st Lien Term Loan           Capmark Mortgage Securities, Inc.          
        Series 1997-C2 Class G          
5.000% due 12/11/21     123 123        
Verdesion Life Sciences LLC 1st Lien           6.750% due 04/15/29     684 717
Term Loan B           CCRESG Commercial Mortgage Trust          
 
6.000% due 07/01/20 (Ê) 923 868 Series 2016-HEAT Class C      
Western Digital Corp. 1st Lien Term           4.919% due 04/10/29 (Þ)     775 805
Loan B           Citigroup Commercial Mortgage Trust          
6.250% due 04/29/23 (Ê) 221 223 Series 2014-GC19 Class A1          
William Morris Endeavor Entertainment           1.199% due 03/10/47 430 430
LLC 1st Lien Term Loan B           Commercial Mortgage Loan Trust          
5.250% due 05/06/21 (Ê) 980 979 Series 2008-LS1 Class A4B          
 
WMG Acquisition Corp. Term Loan B       6.297% due 12/10/49 956 990
3.750% due 07/01/20 (Ê)     751 748 Commercial Mortgage Trust          
World Endurance Holdings 1st Lien           Series 2005-GG3 Class E          
Term Loan           5.087% due 08/10/42 514 514
5.250% due 06/26/21 (Ê) 985 982 Series 2005-LP5 Class D          
Yonkers Racing Corp. 1st Lien Term           4.795% due 05/10/43 2 3
Loan                      
4.250% due 08/16/19 899 883 Series 2007-GG9 Class A4 583 588
            5.444% due 03/10/39          
 
Zebra Technologies Corp., Term Loan B        Series 2013-LC13 Class A1          
4.000% due 10/27/21 (Ê)     922 927 1.309% due 08/10/46 329 329
Mortgage-Backed Securities - 19.2%         108,049 Series 2014-CR15 Class A1          
Banc of America Commercial Mortgage       1.218% due 02/10/47 386 386
Trust           Series 2014-CR16 Class A1          
Series 2007-2 Class AM           1.445% due 04/10/47 337 338
5.800% due 04/10/49 1,010 1,036 Series 2014-SAVA Class C          
Series 2007-4 Class AM           2.561% due 06/15/34 (Ê)(Þ) 582 574
5.808% due 02/10/51 178 185 Credit Suisse Commercial Mortgage          
Banc of America Funding Trust           Trust          
            Series 2006-C4 Class AM          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 215

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
5.509% due 09/15/39 121 121 2.500% due 09/25/26 510 516
Series 2006-C5 Class A1A           Series 2011-141 Class EA          
5.297% due 12/15/39 414 416 1.750% due 07/25/21 613 619
Series 2007-C1 Class A3           Series 2013-21 Class BA          
5.383% due 02/15/40 74 74 1.000% due 03/25/23 2,423 2,419
Credit Suisse First Boston Mortgage           Series 2013-136 Class KA          
Securities Corp.           2.000% due 05/25/25 464 468
Series 1998-C1 Class F                      
6.000% due 05/17/40 (Þ) 193 199 Fannie Series Mae 2004-W9 Whole Loan Class 2A1          
Series 2004-C4 Class E           6.500% due 02/25/44 22 26
5.135% due 10/15/39 (Þ) 1,580 1,652 Fannie Mae-Aces          
Series 2005-C3 Class AJ           Series 2012-M2 Class A1          
4.771% due 07/15/37 15 15 1.824% due 02/25/22 388 393
CSMC Series           Series 2012-M8 Class ASQ2          
Series 2010-RR4 Class 1BA           1.520% due 12/25/19 2,080 2,088
5.383% due 02/15/40 (Þ) 683 682 Series 2012-M9 Class ASQ2          
Fannie Mae           1.513% due 12/25/17 1,428 1,432
3.530% due 2018 2,841 2,913 Series 2012-M13 Class ASQ2          
3.741% due 2018 1,410 1,458 1.246% due 08/25/17 2,291 2,292
3.860% due 2018 1,163 1,200 Series 2013-M7 Class ASQ2          
4.500% due 2019 26 27 1.233% due 03/26/18 331 331
        Series 2015-M1 Class ASQ2          
4.506% due 2019     2,280 2,367        
        1.626% due 02/25/18     2,847 2,863
5.700% due 2019     881 968 Series 2015-M7 Class ASQ1          
 
4.400% due 2020 740 811 0.882% due 04/25/18 1,124 1,123
4.500% due 2020 649 672 Series 2015-M7 Class ASQ2          
4.500% due 2021 33 34 1.550% due 04/25/18 835 840
2.400% due 2022 946 982 Series 2015-M13 Class ASQ1          
7.000% due 2022 34 34 0.856% due 09/25/19 400 399
        Series 2015-M15 Class ASQ1          
2.500% due 2024     6,178 6,409        
        0.849% due 01/25/19     1,622 1,621
4.500% due 2025     433 467 Series 2016-M1 Class ASQ1          
3.500% due 2030 1,621 1,721 1.374% due 07/25/19 831 835
2.229% due 2033(Ê) 26 28 Series 2016-M3 Class ASQ1          
Fannie Mae Grantor Trust           1.468% due 03/25/21 1,691 1,699
Series 2001-T4 Class A1           Series 2016-M6 Class ASQ2          
7.500% due 07/25/41 518 641 1.785% due 06/25/19 4,050 4,090
Series 2004-T2 Class 1A3           Series 2016-M7 Class AV1          
7.000% due 11/25/43 486 565 1.557% due 10/25/23 1,210 1,217
Fannie Mae REMIC Trust           FDIC Guaranteed Notes Trust          
Series 2004-W12 Class 1A1           Series 2010-S1 Class 1A          
6.000% due 07/25/44 2,129 2,497 0.983% due 02/25/48 (Ê)(Þ) 21 21
Series 2005-W1 Class 1A2           FDIC Trust          
6.500% due 10/25/44 83 99 Series 2010-R1 Class A          
Fannie Mae REMICS           2.184% due 05/25/50 (Þ) 1,482 1,484
Series 2002-57 Class PG           Series 2011-R1 Class A          
5.500% due 09/25/17 38 38 2.672% due 07/25/26 (Þ) 600 611
Series 2004-70 Class EB           Federal Home Loan Mortgage Corp.          
5.000% due 10/25/24 74 80 Multifamily Structured Pass Through          
Series 2007-73 Class A1           Certificates          
        Series 2010-K009 Class A1          
0.281% due 07/25/37 (Å)(Ê)     56 55        
Series 2009-96 Class DB           2.757% due 05/25/20     599 609
        Series 2012-K019 Class A1          
4.000% due 11/25/29     136 146        
Series 2011-21 Class VJ           1.459% due 09/25/21     2,364 2,371
        Series 2012-K706 Class A1          
5.000% due 03/25/22     1,856 1,874        
Series 2011-88 Class AB           1.691% due 06/25/18     4,707 4,724

 

See accompanying notes which are an integral part of this quarterly report.

216 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 2012-K706 Class X1           2.000% due 10/15/19 643 650
Interest Only STRIP            Series 2014-4383 Class JC          
1.703% due 10/25/18 10,799 319 2.000% due 05/15/23 1,083 1,093
Series 2013-K502 Class A2            Series 2014-4399 Class A          
1.426% due 08/25/17 659 660 2.500% due 07/15/24 1,628 1,646
Series 2016-K504 Class A1            FREMF Mortgage Trust Class B          
1.680% due 10/25/19 772 779 Series 2012-K707          
Series 2016-KP03 Class A2           3.883% due 01/25/47 (Þ) 890 920
1.780% due 07/25/19 5,360 5,429 Ginnie Mae          
Federal Home Loan Mortgage Corp.           Series 2010-14 Class A          
Multifamily Structured Pass-Through           4.500% due 06/16/39 155 165
Certificates           Series 2010-H04 Class BI          
Series 2011-K702 Class X1           Interest Only STRIP          
Interest Only STRIP                  
        1.406% due 04/20/60     3,899 175
1.452% due 02/25/18     27,123 508            
            Series 2010-H12 Class PT          
 
Series 2015-KF12 Class A       5.470% due 11/20/59 507 519
1.125% due 09/25/22 (Ê)     2,639 2,651            
Series 2016-KF15 Class A           Series 2010-H22 Class JI          
        Interest Only STRIP          
1.070% due 02/25/23 (Ê)     2,490 2,500        
Federal Home Loan Mortgage Corp.           2.503% due 11/20/60     3,514 230
Structured Pass Through Securities           Series 2012-H11 Class CI          
  Series 2003-58 Class 2A           Interest Only STRIP          
6.500% due 09/25/43 30 36 2.909% due 04/20/62 5,185 317
Federal National Mortgage Association           Series 2013-H03 Class HI          
        Interest Only STRIP          
5.000% due 2018     2,689 2,760        
        2.622% due 12/20/62     5,059 425
2.000% due 2023     1,099 1,122 Series 2014-137 Class JD          
Freddie Mac           5.459% due 09/20/44 949 1,084
6.000% due 2018 5 5 Ginnie Mae II          
5.500% due 2019 288 303 1.750% due 2040(Ê) 313 323
5.500% due 2022 200 214 2.000% due 2040(Ê) 369 382
4.500% due 2026 3,269 3,502 3.500% due 2040(Ê) 2,325 2,409
5.500% due 2029 110 124 5.390% due 2059 1,391 1,430
3.500% due 2030 1,349 1,441 5.508% due 2059 989 1,012
Freddie Mac REMICS           4.816% due 2062 1,418 1,496
 
Series 2003-2559 Class PB       4.856% due 2062 1,999 2,094
5.500% due 08/15/30     —   1            
Series 2003-2632 Class AB           GS Mortgage Securities Trust          
        Series 2013-GC12 Class A1          
4.500% due 06/15/18     434 445        
Series 2003-2657 Class WT           0.742% due 06/10/46     212 212
        Series 2014-GC18 Class A1          
4.500% due 08/15/18     108 111        
Series 2005-2922 Class JN           1.298% due 01/10/47     738 738
        GSMPS Mortgage Loan Trust          
4.500% due 02/15/20     747 768 Series 1998-1 Class A          
Series 2010-3704 Class DC           8.000% due 09/19/27 (Þ) 30 29
4.000% due 11/15/36 279 297 Series 1998-2 Class A          
Series 2010-3728 Class EL           7.587% due 05/19/27 (Þ) 125 130
1.500% due 09/15/20 8 8 Series 1998-3 Class A          
Series 2011-3803 Class PG           7.750% due 09/19/27 (Þ) 6 6
4.000% due 01/15/41 586 620 Series 1999-3 Class A          
Series 2011-3816 Class D           8.000% due 08/19/29 (Þ) 13 12
3.500% due 08/15/28 681 697 Series 2005-RP1 Class 1A4          
Series 2012-4060 Class QA           8.500% due 01/25/35 (Þ) 137 146
1.500% due 09/15/26 2,682 2,675 Series 2006-RP1 Class 1A2          
Series 2014-4315 Class CA           7.500% due 01/25/36 (Þ) 316 338
2.000% due 01/15/23 1,729 1,753 Series 2006-RP1 Class 1A3          
Series 2014-4350 Class CA           8.000% due 01/25/36 (Þ) 76 83

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 217

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Hilton USA Trust           Mastr Reperforming Loan Trust          
Series 2013-HLT Class CFX           Series 2005-1 Class 1A3          
3.714% due 11/05/30 (Þ) 1,520 1,531 7.000% due 08/25/34 (Þ) 380 385
JPMBB Commercial Mortgage Securities         Series 2005-2 Class 1A4          
Trust           8.000% due 05/25/35 (Þ) 285 300
Series 2016-C1 Class A1           Merrill Lynch Mortgage Investors Trust          
 
1.695% due 03/15/49 1,357 1,369 Series 1998-C1 Class A3        
JPMorgan Chase Commercial Mortgage                  
Securities Trust           6.720% due 11/15/26     118 118
Series 2002-C2 Class E           Series 1998-C3 Class IO          
5.758% due 12/12/34 73 73 0.898% due 12/15/30 818 7
Series 2004-LN2 Class A2           Series 2005-A10 Class A          
5.115% due 07/15/41 53 53 0.656% due 02/25/36 (Ê) 28 26
            Merrill Lynch Mortgage Pass-Through        
 
Series 2004-LN2 Class B       Certificates          
5.466% due 07/15/41     150 149 Series 2006-2 Class AJ          
Series 2005-CB12 Class AJ           6.082% due 06/12/46 661 661
4.987% due 09/12/37 629 629 Merrill Lynch Mortgage Trust          
Series 2005-LDP2 Class C           Series 2005-CKI1 Class D          
4.911% due 07/15/42 460 460 5.515% due 11/12/37 592 579
Series 2006-LDP9 Class A1A           Series 2007-C1 Class A4          
5.257% due 05/15/47 729 733 5.838% due 06/12/50 1,010 1,038
Series 2007-CB20 Class AM           ML-CFC Commercial Mortgage Trust        
6.087% due 02/12/51 160 167 Series 2006-4 Class A3          
Series 2007-LDPX Class A1A           5.172% due 12/12/49 322 323
5.439% due 01/15/49 779 790 Morgan Stanley Bank of America Merrill        
Series 2007-LDPX Class AM           Lynch Trust          
        Series 2015-C26 Class A1          
5.464% due 01/15/49     995 963        
Series 2014-CBM Class A           1.591% due 10/15/48     972 972
        Morgan Stanley Capital I Trust          
1.067% due 10/15/29 (Ê)(Þ)     2,580 2,555 Series 2006-HQ8 Class AJ          
Series 2015-CSMO Class A                  
        5.495% due 03/12/44     240 239
1.685% due 01/15/32 (Ê)(Þ)     465 465 Series 2006-IQ12 Class AM          
Series 2015-FL7 Class A                  
        5.370% due 12/15/43     100 101
1.683% due 05/15/28 (Ê)(Þ)     280 279 Series 2006-T21 Class B          
JPMorgan Commercial Mortgage Finance                
Corp.           5.312% due 10/12/52 (Þ)     355 354
Series 2000-C10 Class F           Morgan Stanley Re-REMIC Trust          
        Series 2010-GG10 Class A4A          
8.559% due 08/15/32     561 591        
JPMorgan Mortgage Trust           5.795% due 08/15/45 (Þ)     3,693 3,755
Series 2004-A2 Class 1A1           NCUA Guaranteed Notes Trust          
        Series 2010-R3 Class 3A          
2.609% due 05/25/34 (Ê)     101 99        
Series 2005-A4 Class 1A1           2.400% due 12/08/20     326 329
        ORES LLC          
2.552% due 07/25/35 (Ê)     35 34 Series 2014-LV3 Class A          
Series 2006-A6 Class 1A2                  
        3.000% due 03/27/24 (Þ)     115 115
2.678% due 10/25/36 (Ê)     20 18 RBSCF Trust          
LB Commercial Mortgage Trust           Series 2010-RR3 Class MSCA          
Series 2007-C3 Class AM                  
        6.114% due 06/16/49 (Þ)     227 229
6.096% due 07/15/44     887 912 Series 2010-RR4 Class CMLA          
LB-UBS Commercial Mortgage Trust                  
Series 2004-C1 Class A4           6.040% due 12/16/49 (Þ)     306 313
        Series 2010-RR4 Class WBCA        
4.568% due 01/15/31     368 368        
Series 2005-C7 Class F           5.509% due 04/16/47 (Þ)     1,877 1,873
        RBSSP Resecuritization Trust          
5.350% due 11/15/40     510 505 Series 2010-3 Class 9A1          
Series 2006-C7 Class A3                  
        5.500% due 02/26/35 (Þ)     338 341
5.347% due 11/15/38     52 52 Reperforming Loan REMIC Trust          
Mastr Adjustable Rate Mortgages Trust           Series 2005-R2 Class 2A4          
Series 2005-1 Class B1                  
        8.500% due 06/25/35 (Þ)     57 60
2.738% due 03/25/35 (Ê)     165 53 Rialto Capital Management LLC          

 

See accompanying notes which are an integral part of this quarterly report.

218 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Series 2014-LT5 Class A           0.875% due 08/15/17 565 566
2.850% due 05/15/24 (Þ) 137 137 4.750% due 08/15/17 4,955 5,166
RREF LLC                  
Series 2014-LT6 Class A           1.875% due 08/31/17     6,330 6,415
2.750% due 09/15/24 (Þ) 49 49 0.701% due 09/15/17 5,637 5,661
Structured Asset Securities Corp.           0.750% due 10/31/17 4,550 4,557
Mortgage Pass Through Certificates                  
Series 2003-34A Class 6A           0.875% due 11/15/17     4,565 4,579
2.595% due 11/25/33 (Ê) 172 169 0.625% due 11/30/17 1,300 1,300
Wachovia Bank Commercial Mortgage           2.250% due 11/30/17 3,658 3,736
Trust                  
 Series 2004-C12 Class F           0.750% due 12/31/17     202 202
5.611% due 07/15/41 (Þ) 447 448 0.750% due 01/31/18 8,135 8,146
Series 2006-C26 Class AM           1.014% due 02/15/18 3,303 3,320
6.211% due 06/15/45 1,355 1,359 3.500% due 02/15/18 4,653 4,855
Series 2006-C27 Class AM           0.750% due 02/28/18 4,919 4,926
5.795% due 07/15/45 272 272   4,900 5,061
            2.750% due 02/28/18          
Series 2007-C31 Class A4                  
        0.625% due 04/30/18     8,009 8,003
5.509% due 04/15/47     1,134 1,150        
Series 2007-C31 Class A5FL           0.912% due 05/15/18     1,180 1,187
0.640% due 04/15/47 (Ê)(Þ) 1,020 1,011 0.875% due 05/31/18 7,040 7,067
Series 2007-C31 Class AM           1.000% due 05/31/18 16,725 16,824
5.591% due 04/15/47 1,090 1,110 0.625% due 06/30/18 14,470 14,460
Series 2007-C32 Class A2                  
        1.500% due 08/31/18     9,173 9,328
5.711% due 06/15/49     70 70        
 Series 2007-C33 Class A4           1.375% due 09/30/18     10,955 11,116
6.147% due 02/15/51 87 88 0.875% due 10/15/18 29,240 29,358
Washington Mutual Mortgage Pass-           3.750% due 11/15/18 7,220 7,722
Through Certificates Trust           1.250% due 11/30/18 12,525 12,683
Series 2003-AR7 Class A7                  
        1.125% due 01/15/19     6,210 6,271
2.299% due 08/25/33 (Ê)     64 64        
Wells Fargo Commercial Mortgage Trust           1.250% due 01/31/19     7,600 7,701
Series 2015-C31 Class A1           0.750% due 02/15/19 2,628 2,630
1.679% due 11/15/48 1,043 1,050 2.750% due 02/15/19 6,689 7,035
Wells Fargo Mortgage Backed Securities                  
Trust           1.500% due 02/28/19     10,505 10,714
Series 2005-AR2 Class 2A1           0.875% due 04/15/19 2,570 2,579
2.615% due 03/25/35 (Ê) 123 122 1.625% due 04/30/19 8,505 8,709
WFRBS Commercial Mortgage Trust                  
Series 2012-C10 Class A1           0.875% due 05/15/19     6,390 6,412
0.734% due 12/15/45 124 124 0.875% due 06/15/19 4,845 4,860
WF-RBS Commercial Mortgage Trust           0.750% due 07/15/19 5,050 5,048
Series 2012-C9 Class A1           1.125% due 06/30/21 16,510 16,580
0.673% due 11/15/45 746 744   315 320
            1.625% due 05/15/26          
Series 2013-C14 Class A1                      
0.836% due 06/15/46 534 533 Total Long-Term Investments         260,578
Series 2014-C19 Class A3                      
3.660% due 03/15/47 340 366 (cost $762,016)         761,596
          158,204            
United States Government Agencies - 0.9%       Common Stocks - 0.0%          
Fannie Mae           Health Care - 0.0%          
1.125% due 07/20/18 4,994 5,029 Millennium Health LLC(Æ) 14,856 52
Federal Home Loan Banks           Total Common Stocks          
        (cost $108)         52
1.750% due 12/14/18     2,415 2,465            
          7,494            
United States Government Treasuries - 31.7%       Short-Term Investments - 8.6%          
United States Treasury Notes           21st Century Fox America, Inc.          
2.375% due 07/31/17 5,386 5,481            

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 219

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)      
    Principal   Fair     Principal   Fair  
    Amount ($)   Value     Amount ($)   Value  
    or Shares   $     or Shares   $  
8.000% due 10/17/16 420 426 2.500% due 03/15/17 610 594  
Aflac, Inc.         Nomura Holdings, Inc.          
2.650% due 02/15/17 1,120 1,129 2.000% due 09/13/16 1,680 1,682  
Ally Financial, Inc.         Russell U.S. Cash Management Fund   34,143,310 (8)   34,143  
5.500% due 02/15/17 2,595 2,641 Samsung Electronics America, Inc.          
American Express Credit Corp.         1.750% due 04/10/17 (Þ) 895 898  
1.125% due 06/05/17 2,335 2,338 Thermo Fisher Scientific, Inc.          
Bear Stearns Cos. LLC (The)         1.300% due 02/01/17 1,040 1,041  
5.550% due 01/22/17 1,650 1,684 Toyota Auto Receivables Owner Trust          
BMW Vehicle Owner Trust         Series 2015-A Class A2          
Series 2016-A Class A1         0.710% due 07/17/17 144 144  
0.620% due 07/25/17 570 570 United States Treasury Bills          
Coventry Health Care, Inc.         0.083% due 08/04/16 (ç) 1,300 1,300  
5.950% due 03/15/17 775 797 United States Treasury Notes          
Credit Suisse AG         0.625% due 05/31/17 4,020 4,022  
Series GMTN         Total Short-Term Investments          
1.375% due 05/26/17 905 905 (cost $70,272)       70,332  
Dayton Power & Light Co. (The)                    
1.875% due 09/15/16 325 325 Total Investments 101.1%          
Deutsche Telekom International Finance         (identified cost $832,396)       831,980  
BV                    
2.250% due 03/06/17 (Þ) 2,295 2,310            
Enterprise Fleet Financing LLC         Other Assets and Liabilities,          
Series 2016-2 Class A1         Net - (1.1%)       (8,746 )
0.850% due 07/20/17 (Å) 3,800 3,800 Net Assets - 100.0%       823,234  
Fannie Mae                    
7.000% due 06/01/17 3 3            
Fannie Mae-Aces                    
Series 2012-M14 Class ASQ2                    
1.114% due 02/25/17 208 208            
Series 2013-M1 Class ASQ2                    
1.074% due 11/25/16 102 102            
Series 2014-M9 Class ASQ2                    
1.462% due 04/25/17 422 423            
Federal Home Loan Mortgage Corp.                    
Multifamily Structured Pass Through                    
Certificates                    
Series 2012-K501 Class A2                    
1.655% due 11/25/16 760 760            
Series 2012-K501 Class X1A                    
Interest Only STRIP                    
1.447% due 08/25/16 4,899 —            
Ford Motor Credit Co. LLC                    
4.250% due 02/03/17 2,460 2,496            
Hartford Financial Services Group, Inc.                    
(The)                    
5.500% due 10/15/16 1,705 1,721            
Hess Corp.                    
1.300% due 06/15/17 565 563            
Hutchison Whampoa International 11,                    
Ltd.                    
3.500% due 01/13/17 (Þ) 940 950            
Intesa Sanpaolo SpA                    
2.375% due 01/13/17 1,460 1,463            
Liberty Property, LP                    
5.500% due 12/15/16 880 894            
Noble Holding International, Ltd.                    

 

See accompanying notes which are an integral part of this quarterly report.

220 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
          Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities   Date     or shares   $   $   $  
0.8%                      
Daimler Finance NA LLC   06/30/16 735,000 99.85 734 735  
Daimler Finance NA LLC   06/30/16 410,000 99.96 410 412  
Enterprise Fleet Financing LLC   07/12/16 3,800,000 100.00 3,800 3,800  
Fannie Mae REMICS   08/17/07 55,684 99.14 55 55  
Social Finance, Inc.   07/20/16 1,150,000 99.64 1,146 1,146  
                      6,148  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.              

 

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
Australia 10 Year Treasury Bond Futures 235 AUD 32,276 09/16 355  
Long Gilt Futures 132 GBP 17,285 09/16 866  
United States 2 Year Treasury Note Futures 519 USD 113,661 09/16 405  
Short Positions                  
Canada 10 Year Government Bond Futures 63 CAD 9,354 09/16 13  
Euro-Bund Futures 118 EUR 19,802 09/16 (354 )
Japan 10 Year Treasury Bond Futures 12 JPY 1,831,200 09/16 (14 )
United States 5 Year Treasury Note Futures 402 USD 49,050 09/16 (577 )
United States 10 Year Treasury Note Futures 42 USD 5,588 09/16 (153 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               541  

 

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD 954 MXN 17,972 08/31/16 1  
Bank of America MXN 17,972 USD 957 08/02/16 (1 )
Commonwealth Bank of Australia USD 10,905 NZD 15,211 08/05/16 79  
Commonwealth Bank of Australia SEK 61,006 USD 7,246 08/05/16 115  
HSBC MXN 18,186 USD 963 08/31/16 (4 )
JPMorgan Chase USD 1,400 JPY 147,381 08/31/16 46  
JPMorgan Chase JPY 66,881 USD 650 08/31/16 (6 )
JPMorgan Chase JPY 77,568 USD 750 08/31/16 (11 )
Royal Bank of Canada USD 3,625 AUD 4,846 08/05/16 59  
Royal Bank of Canada USD 3,597 EUR 3,227 08/05/16 11  
Royal Bank of Canada CHF 10,491 USD 10,793 08/05/16 (33 )
State Street USD 118 CAD 154 08/05/16 —  
State Street USD 7,229 CAD 9,330 08/05/16 (83 )
State Street USD 3,480 CHF 3,363 08/05/16 (10 )
State Street USD 3,554 GBP 2,677 08/05/16 (11 )
State Street USD 3,699 JPY 379,054 08/05/16 16  
State Street AUD 4,846 USD 3,683 08/05/16 —  
State Street EUR 3,227 USD 3,609 08/05/16 1  
State Street GBP 2,677 USD 3,563 08/05/16 20  
State Street NOK 30,847 USD 3,662 08/05/16 6  
State Street NZD 5,026 USD 3,624 08/05/16 (6 )
State Street SEK 1,269 USD 149 08/05/16 —  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts           189  
+                  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Short Duration Bond Fund 221

 

Russell Investment Company
Russell Short Duration Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                  Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Long-Term Investments                            
Asset-Backed Securities $ —   $ 53,046   $ — $ — $   53,046  
Corporate Bonds and Notes   —     138,626     —   —     138,626  
International Debt   —     35,599     —   —     35,599  
Loan Agreements   —     108,049     —   —     108,049  
Mortgage-Backed Securities   —     158,204     —   —     158,204  
United States Government Agencies   —     7,494     —   —     7,494  
United States Government Treasuries   —     260,578     —   —     260,578  
Common Stocks —   52   — —   52  
Short-Term Investments —   36,189   — 34,143   70,332  
Total Investments —   797,837   — 34,143   831,980  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 1,639   —   — —   1,639  
Foreign Currency Exchange Contracts 24   330   — —   354  
 
Liabilities                            
Futures Contracts (1,098 ) —   — —   (1,098 )
Foreign Currency Exchange Contracts (29 ) (136 ) — —   (165 )
Total Other Financial Instruments* $ 536   $ 194   $ — $ — $   730  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

See accompanying notes which are an integral part of this quarterly report.

222 Russell Short Duration Bond Fund

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Municipal Bonds - 96.0%                
Alabama - 1.9%                
Alabama Industrial Development Authority Revenue Bonds 500      6.450    12/01/23   501
County of Jefferson Alabama General Obligation Limited(µ) 425      5.000    04/01/23   432
County of Jefferson Alabama General Obligation Unlimited(µ) 1,590      5.000    04/01/20   1,617
County of Jefferson Alabama Revenue Bonds 150      4.750    01/01/25   151
County of Jefferson Alabama Sewer Revenue Bonds 1,220      7.000    10/01/51   1,575
County of Jefferson Alabama Sewer Revenue Bonds 1,000      6.500    10/01/53   1,253
Houston County Health Care Authority Revenue Bonds 150    5.000    10/01/30    179
                5,708
Alaska - 1.0%                
Northern Tobacco Securitization Corp. Revenue Bonds 3,065    5.000    06/01/46    3,018
Arizona - 1.0%                
Arizona Health Facilities Authority Revenue Bonds(Ê) 1,000      1.220    01/01/37   913
Industrial Development Authority of the City of Phoenix (The) Revenue Bonds 1,000      5.000    07/01/35   1,095
Industrial Development Authority of the County of Pima (The) Revenue Bonds 250      4.500    06/01/30   279
Industrial Development Authority of the County of Pima (The) Revenue Bonds 800    5.125    12/01/40    858
                3,145
California - 12.9%                
Alameda Corridor Transportation Authority Revenue Bonds 175      5.000    10/01/36   212
Alameda Corridor Transportation Authority Revenue Bonds 150      5.000    10/01/37   181
Alhambra Unified School District General Obligation Unlimited(µ) 1,150      Zero coupon    08/01/37   582
Anaheim Community Facilities District Special Tax 125      4.000    09/01/46   136
California County Tobacco Securitization Agency Revenue Bonds 300      5.700    06/01/46   306
California Municipal Finance Authority Revenue Bonds 1,000      4.250    02/01/40   1,058
California Municipal Finance Authority Revenue Bonds 1,000      5.375    11/01/40   1,101
California Municipal Finance Authority Revenue Bonds 3,700      5.000    06/01/50   4,152
California Pollution Control Financing Authority Revenue Bonds 1,000      3.375    07/01/25   1,098
California Pollution Control Financing Authority Revenue Bonds 2,720      5.000    11/21/45   3,066
California School Finance Authority Revenue Bonds 500      5.000    08/01/45   570
California Statewide Communities Development Authority Revenue Bonds 460      5.000    05/15/32   542
California Statewide Communities Development Authority Revenue Bonds 1,000      5.000    12/01/41   1,155
California Statewide Communities Development Authority Revenue Bonds 1,000      5.000    10/01/43   1,113
California Statewide Communities Development Authority Revenue Bonds(Å) 250      5.250    12/01/56   290
California Statewide Communities Development Authority Special Tax 500      4.000    09/01/19   531
California Statewide Communities Development Authority Special Tax 1,085      4.000    09/01/20   1,168
California Statewide Communities Development Authority Special Tax 500      4.250    09/01/22   556
City of Long Beach California Marina System Revenue Bonds 225      5.000    05/15/40   265
City of Long Beach California Marina System Revenue Bonds 1,185      5.000    05/15/45   1,391
Coachella Valley Unified School District General Obligation Unlimited(µ) 1,300      Zero coupon    08/01/43   503
Foothill-Eastern Transportation Corridor Agency Revenue Bonds 100      6.000    01/15/49   121
Fremont Community Facilities District No. 1 Special Tax 1,255      5.000    09/01/26   1,483
Golden State Tobacco Securitization Corp. Revenue Bonds 500      5.000    06/01/33   507
Golden State Tobacco Securitization Corp. Revenue Bonds 1,995      5.300    06/01/37   2,046
Golden State Tobacco Securitization Corp. Revenue Bonds 500      5.000    06/01/45   601
Golden State Tobacco Securitization Corp. Revenue Bonds 200      Zero coupon    06/01/47   21
Golden State Tobacco Securitization Corp. Revenue Bonds 700      5.125    06/01/47   701
Golden State Tobacco Securitization Corp. Revenue Bonds 885      5.750    06/01/47   904
Jurupa Public Financing Authority Special Tax 1,000      5.000    09/01/43   1,160
M-S-R Energy Authority Revenue Bonds 1,000      6.500    11/01/39   1,495
Oakland Unified School District/Alameda County General Obligation Unlimited 1,000      5.000    08/01/19   1,116
Palomar Health Certificate Of Participation 450      6.750    11/01/39   498
Palomar Health Certificate Of Participation 500      6.000    11/01/41   536
Rancho Cordova Community Facilities District Special Tax 125      3.000    09/01/34   122
Regents of the University of California Medical Center Pooled Revenue Bonds(µ)(Ê) 1,000      0.924    05/15/43   884
River Islands Public Financing Authority Special Tax 890      5.500    09/01/45   991
Sacramento County Sanitation Districts Financing Authority Revenue Bonds(µ)(Ê) 1,000      0.719    12/01/35   929
San Jacinto Community Facilities District Special Tax 280      5.000    09/01/33   322

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt High Yield Bond Fund 223

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
San Jacinto Community Facilities District Special Tax 335      5.000    09/01/34   384
San Joaquin Hills Transportation Corridor Agency Revenue Bonds 1,000      5.000    01/15/29   1,200
San Joaquin Hills Transportation Corridor Agency Revenue Bonds 180      5.250    01/15/49   211
San Joaquin Hills Transportation Corridor Agency Revenue Bonds 2,000      5.000    01/15/50   2,318
Tobacco Securitization Authority of Northern California Revenue Bonds 800    5.500    06/01/45    800
                39,326
Colorado - 1.5%                
Denver Health & Hospital Authority Revenue Bonds(Ê) 1,000      1.289    12/01/33   927
Denver Health & Hospital Authority Revenue Bonds 1,500      5.250    12/01/45   1,695
Eaton Area Park & Recreation District General Obligation Limited 725      5.250    12/01/34   776
Eaton Area Park & Recreation District General Obligation Limited 525      5.500    12/01/38   568
Foothills Metropolitan District Special Assessment 500    6.000    12/01/38    550
                4,516
Connecticut - 0.1%                
Mohegan Tribal Finance Authority Revenue Bonds(Å) 350    7.000    02/01/45    354
 
District of Columbia - 1.1%                
District of Columbia Revenue Bonds 145      6.250    10/01/23   160
District of Columbia Tobacco Settlement Financing Corp. Revenue Bonds 4,000      Zero coupon    06/15/46   538
Metropolitan Washington Airports Authority Dulles Toll Road Revenue Bonds 2,475    5.000    10/01/53    2,771
                3,469
Florida - 7.9%                
Bannon Lakes Community Development District Special Assessment 100      5.000    11/01/48   102
Bartram Park Community Development District Special Assessment 770      4.500    05/01/25   797
Bartram Park Community Development District Special Assessment 500      4.250    05/01/29   525
Bartram Park Community Development District Special Assessment 500      4.500    05/01/35   522
Charlotte County Industrial Development Authority Revenue Bonds(Å) 250      5.500    10/01/36   258
City of Atlantic Beach Florida Revenue Bonds 1,000      5.000    11/15/37   1,100
City of Cape Coral Florida Water & Sewer Revenue Bonds 1,000      4.000    10/01/36   1,107
City of Tampa Florida Revenue Bonds 960      5.000    04/01/45   1,102
County of Osceola Florida Revenue Bonds 3,700      6.000    10/01/24   2,962
Escambia County Health Facilities Authority Revenue Bonds 1,000      6.000    08/15/36   1,164
Grand Bay at Doral Community Development District Special Assessment 75      4.750    05/01/36   77
Grand Bay at Doral Community Development District Special Assessment 75      5.000    05/01/46   77
Greater Orlando Aviation Authority Revenue Bonds 750      5.000    11/15/36   798
Lakewood Ranch Stewardship District Special Assessment 100      4.000    05/01/21   104
Lakewood Ranch Stewardship District Special Assessment 100      4.250    05/01/26   106
Lakewood Ranch Stewardship District Special Assessment 1,000      4.875    05/01/35   1,055
Lakewood Ranch Stewardship District Special Assessment 100      5.000    05/01/36   107
Lakewood Ranch Stewardship District Special Assessment 215      5.125    05/01/46   227
Lee County Industrial Development Authority Revenue Bonds 750      5.000    11/15/29   767
Miami Beach Health Facilities Authority Revenue Bonds 2,250      5.000    11/15/39   2,578
Mid-Bay Bridge Authority Revenue Bonds 1,000      5.000    10/01/40   1,178
Orchid Grove Community Development District Special Assessment 970      3.625    05/01/21   979
Orchid Grove Community Development District Special Assessment 1,245      5.000    05/01/36   1,296
Palm Glades Community Development District Special Assessment 100      3.750    05/01/31   103
Reunion East Community Development District Special Assessment 750      5.000    05/01/25   824
Reunion East Community Development District Special Assessment 750      5.000    05/01/33   795
South-Dade Venture Community Development District Special Assessment 1,000      5.125    05/01/33   1,091
Tapestry Community Development District Special Assessment 100      5.000    05/01/46   102
Two Creeks Community Development District General Obligation 355      4.200    05/01/26   355
Two Creeks Community Development District General Obligation 100      3.500    05/01/32   99
Two Creeks Community Development District General Obligation 100      3.625    05/01/37   97
Venetian Community Development District Special Assessment 480      5.000    05/01/23   514
Verano 1 Community Development Distrtict Special Assessment 250      4.750    11/01/25   256
Verano 1 Community Development Distrtict Special Assessment 250      5.125    11/01/35   263
Verano 1 Community Development Distrtict Special Assessment 250      5.250    11/01/46   264
Volusia County Educational Facility Authority Revenue Bonds 240      5.000    06/01/45   283

 

See accompanying notes which are an integral part of this quarterly report.

224 Russell Tax Exempt High Yield Bond Fund

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Winding Cypress Community Development District Special Assessment 100    5.000    11/01/45    103
                24,137
Georgia - 1.2%                
Heard County Development Authority Revenue Bonds(Ê) 400      0.200    12/01/37   400
Milledgeville & Baldwin County Development Authority Revenue Bonds(µ)(Ê) 1,000      0.784    10/01/24   976
Milledgeville & Baldwin County Development Authority Revenue Bonds(µ)(Ê) 1,225      0.834    10/01/33   1,061
Private Colleges & Universities Authority Revenue Bonds 1,000    5.000    10/01/40    1,128
                3,565
Guam - 1.5%                
Guam Government Waterworks Authority Revenue Bonds 1,000      5.500    07/01/43   1,184
Guam Government Waterworks Authority Revenue Bonds 65      5.000    01/01/46   76
Territory of Guam Revenue Bonds 900      5.000    11/15/19   992
Territory of Guam Revenue Bonds 500      5.000    11/15/29   580
Territory of Guam Revenue Bonds 1,500    5.000    11/15/35    1,701
                4,533
Hawaii - 0.8%                
State of Hawaii Department of Budget & Finance Revenue Bonds 2,210    5.000    01/01/30    2,375
 
Illinois - 9.6%                
Chicago Board of Education General Obligation Unlimited 145      4.250    12/01/18   138
Chicago Board of Education General Obligation Unlimited(Ê) 1,000      7.500    03/01/26   1,010
Chicago Board of Education General Obligation Unlimited(µ) 1,000      5.000    12/01/27   1,037
Chicago Board of Education General Obligation Unlimited 795      5.000    12/01/28   741
Chicago Board of Education General Obligation Unlimited(µ) 230      Zero coupon    12/01/29   132
Chicago Board of Education General Obligation Unlimited 150      5.125    12/01/32   141
Chicago Board of Education General Obligation Unlimited(Ê) 1,000      1.220    03/01/36   908
Chicago Board of Education General Obligation Unlimited 75      5.250    12/01/39   70
Chicago Board of Education General Obligation Unlimited 325      5.000    12/01/41   298
Chicago Board of Education General Obligation Unlimited 2,425      7.000    12/01/44   2,569
Chicago O'Hare International Airport Revenue Bonds 1,000      5.000    01/01/46   1,147
City of Chicago Illinois General Obligation Unlimited(µ) 2,445      5.000    01/01/29   2,547
City of Chicago Illinois General Obligation Unlimited 2,100      5.500    01/01/42   2,163
City of Chicago Illinois Revenue Bonds 900      5.000    01/01/34   1,002
City of Chicago Illinois Revenue Bonds 3,000      5.250    01/01/38   3,241
City of Chicago Illinois Waterworks Revenue Revenue Bonds 100      5.000    11/01/29   120
City of Springfield Illinois Electric Revenue Bonds(µ) 775      4.000    03/01/40   841
Illinois Finance Authority Revenue Bonds 500      5.000    04/01/31   501
Illinois Finance Authority Revenue Bonds 1,375      5.000    05/15/31   1,586
Illinois Finance Authority Revenue Bonds 200      5.000    04/01/36   200
Illinois Finance Authority Revenue Bonds 400      5.000    12/01/36   402
Illinois Finance Authority Revenue Bonds 630      5.000    12/01/37   696
Illinois Finance Authority Revenue Bonds 875      6.000    05/15/39   1,013
Illinois Finance Authority Revenue Bonds 350      6.500    10/15/40   351
Illinois Finance Authority Revenue Bonds 100      5.000    09/01/46   116
Metropolitan Pier & Exposition Authority Revenue Bonds 1,000      5.000    12/15/28   1,129
Metropolitan Pier & Exposition Authority Revenue Bonds(µ) 220      Zero coupon    06/15/30   133
Metropolitan Pier & Exposition Authority Revenue Bonds 1,000      5.000    06/15/52   1,089
Springfield Metropolitan Sanitation District General Obligation Limited 1,000      5.750    01/01/53   1,221
State of Illinois General Obligation Unlimited 1,000      5.000    05/01/29   1,107
State of Illinois General Obligation Unlimited(µ) 400      5.000    03/01/34   401
Town of Cortland Illinois Special Service Areas No. 9 & 10 Special Tax 100      5.800    03/01/37   96
Village of Bourbonnais Illinois Revenue Bonds 1,000    5.000    11/01/44    1,042
                29,188
Indiana - 1.1%                
Indiana Finance Authority Revenue Bonds 600      5.500    08/15/40   667
Indiana Finance Authority Revenue Bonds 2,000      5.000    10/01/44   2,233
Indiana Finance Authority Revenue Bonds 270      5.500    08/15/45   299

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt High Yield Bond Fund 225

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Indiana Municipal Power Agency Revenue Bonds 250    5.000    01/01/42    303
                3,502
Iowa - 0.3%                
Iowa Higher Education Loan Authority Revenue Bonds 100      5.000    09/01/33   107
Iowa Tobacco Settlement Authority Revenue Bonds 160      5.375    06/01/38   160
Xenia Rural Water District Revenue Bonds 500    5.000    12/01/36    589
                856
Kentucky - 1.3%                
County of Ohio Kentucky Revenue Bonds 2,235      6.000    07/15/31   2,275
Kentucky Economic Development Finance Authority Revenue Bonds 750      6.500    03/01/45   860
Louisville/Jefferson County Metropolitan Government Revenue Bonds 425      4.000    10/01/34   467
Louisville/Jefferson County Metropolitan Government Revenue Bonds 250    4.000    10/01/36    271
                3,873
Louisiana - 1.4%                
Louisiana Local Government Environmental Facilities & Community Development                
Authority Revenue Bonds 750      6.000    10/01/44   882
Louisiana Public Facilities Authority Revenue Bonds 250      4.000    05/15/19   269
Louisiana Public Facilities Authority Revenue Bonds 300      4.000    05/15/20   331
Louisiana Public Facilities Authority Revenue Bonds 400      3.375    09/01/28   419
Louisiana Public Facilities Authority Revenue Bonds 375      3.500    06/01/30   394
New Orleans Aviation Board Revenue Bonds 1,755    5.000    01/01/45    2,040
                4,335
Maryland - 0.9%                
City of Baltimore Maryland Revenue Bonds(µ) 175      5.250    09/01/39   175
Maryland Health & Higher Educational Facilities Authority Revenue Bonds 730      4.000    07/01/20   813
Maryland Health & Higher Educational Facilities Authority Revenue Bonds 600      5.250    01/01/37   695
Maryland Health & Higher Educational Facilities Authority Revenue Bonds 1,000    5.000    07/01/45    1,165
                2,848
Massachusetts - 1.9%                
Massachusetts Development Finance Agency Revenue Bonds 1,415      5.000    09/01/35   1,592
Massachusetts Development Finance Agency Revenue Bonds 1,545      5.000    07/01/44   1,806
Massachusetts Development Finance Agency Revenue Bonds 335      5.000    07/01/46   395
Massachusetts Port Authority Revenue Bonds(µ) 2,000    5.000    01/01/27    2,004
                5,797
Michigan - 4.4%                
City of Detroit Michigan Sewage Disposal System Revenue Bonds(µ) 120      5.000    07/01/33   120
City of Detroit Michigan Sewage Disposal System Revenue Bonds(µ) 500      5.000    07/01/39   575
City of Detroit Michigan Sewage Disposal System Revenue Bonds 2,010      5.250    07/01/39   2,306
City of Detroit Michigan Water Supply System Revenue Bonds(µ) 40      5.000    07/01/28   40
City of Detroit Michigan Water Supply System Revenue Bonds 200      5.000    07/01/36   221
City of Detroit Michigan Water Supply System Revenue Bonds 1,370      5.000    07/01/41   1,506
City of Detroit Michigan Water Supply System Revenue Revenue Bonds(µ) 20      5.250    07/01/19   20
City of Detroit Michigan Water Supply System Revenue Revenue Bonds(µ) 25      5.000    07/01/29   25
Flint Hospital Building Authority Revenue Bonds 100      5.250    07/01/39   103
Michigan Finance Authority Revenue Bonds 1,000      3.875    10/01/23   1,101
Michigan Finance Authority Revenue Bonds 300      5.000    07/01/33   354
Michigan Finance Authority Revenue Bonds(µ) 1,000      5.000    07/01/36   1,157
Michigan Finance Authority Revenue Bonds 1,815      5.500    11/15/45   1,924
Michigan Finance Authority Revenue Notes(Å) 700      5.750    08/22/16   701
Michigan Tobacco Settlement Finance Authority Revenue Bonds 175      5.125    06/01/22   173
Michigan Tobacco Settlement Finance Authority Revenue Bonds 2,500      6.000    06/01/34   2,519
Michigan Tobacco Settlement Finance Authority Revenue Bonds 100      6.000    06/01/48   100
Ypsilanti School District General Obligation Unlimited 300    5.000    05/01/22    353
                13,298
Minnesota - 1.4%                
City of Blaine Minnesota Revenue Bonds 2,000      6.125    07/01/45   2,160
State Paul Housing & Redevelopment Authority Revenue Bonds 2,000    5.250    11/15/35    2,246
                4,406
Missouri - 0.8%                

 

See accompanying notes which are an integral part of this quarterly report.

226 Russell Tax Exempt High Yield Bond Fund

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Branson Industrial Development Authority Tax Allocation 110      5.500    06/01/29   110
Health & Educational Facilities Authority of the State of Missouri Revenue Bonds 1,410      5.000    05/01/40   1,564
State Louis County Industrial Development Authority Revenue Bonds 650    5.000    08/15/30    692
                2,366
Nevada - 0.2%                
Las Vegas Redevelopment Agency Tax Allocation 250      5.000    06/15/45   290
Las Vegas Special Improvement District 607 Special Assessment 260    5.000    06/01/24    298
                588
New Hampshire - 0.2%                
New Hampshire Health and Education Facilities Authority Act Revenue Bonds 500    5.000    10/01/36    592
 
New Jersey - 4.9%                
New Jersey Economic Development Authority Revenue Bonds 1,900      5.000    07/01/38   2,060
New Jersey Economic Development Authority Revenue Bonds 1,500      5.375    01/01/43   1,755
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) 300      4.125    07/01/38   334
New Jersey Health Care Facilities Financing Authority Revenue Bonds 500      6.625    07/01/38   547
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) 150      5.000    07/01/46   178
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) 675      Zero coupon    12/15/27   466
New Jersey Transportation Trust Fund Authority Revenue Bonds 550      Zero coupon    12/15/35   241
New Jersey Transportation Trust Fund Authority Revenue Bonds 125      Zero coupon    12/15/36   52
New Jersey Transportation Trust Fund Authority Revenue Bonds 945      5.000    06/15/42   1,034
South Jersey Transportation Authority LLC Revenue Bonds 315      5.000    11/01/26   376
South Jersey Transportation Authority LLC Revenue Bonds 1,945      5.000    11/01/39   2,217
Tobacco Settlement Financing Corp. Revenue Bonds 1,130      5.000    06/01/29   1,142
Tobacco Settlement Financing Corp. Revenue Bonds 1,430      4.750    06/01/34   1,391
Tobacco Settlement Financing Corp. Revenue Bonds 3,325    5.000    06/01/41    3,269
                15,062
New York - 5.0%                
County of Chautauqua Industrial Development Agency Revenue Bonds 650      5.875    04/01/42   703
Dutchess County Industrial Development Agency Revenue Bonds 2,200      4.500    08/01/36   2,067
New York City Industrial Development Agency Revenue Bonds(Ê) 1,000      2.000    08/01/28   1,000
New York Liberty Development Corp. Revenue Bonds 2,250      5.000    11/15/44   2,580
New York Liberty Development Corp. Revenue Bonds 1,500      7.250    11/15/44   1,974
New York State Dormitory Authority Revenue Bonds 400      5.000    12/01/35   455
New York Transportation Development Corp. Revenue Bonds 500      5.000    08/01/31   547
New York Transportation Development Corp. Revenue Bonds 3,340      5.000    07/01/41   3,822
New York Transportation Development Corp. Revenue Bonds 100      5.000    07/01/46   114
New York Transportation Development Corp. Revenue Bonds 250      5.250    01/01/50   289
New York Transportation Development Corp. Revenue Bonds(µ) 300      4.000    01/01/51   318
Onondaga Civic Development Corp. Revenue Bonds 910      5.000    07/01/42   1,118
Suffolk Tobacco Asset Securitization Corp. Revenue Bonds 250      6.000    06/01/48   253
Westchester County Local Development Corp. Revenue Bonds 125    5.000    11/01/46    146
                15,386
North Carolina - 1.1%                
North Carolina Medical Care Commission Revenue Bonds 1,000      5.000    10/01/35   1,194
North Carolina Medical Care Commission Revenue Bonds 1,750    5.000    11/01/37    2,119
                3,313
Ohio - 2.3%                
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 1,990      5.125    06/01/24   1,958
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 1,100      5.375    06/01/24   1,086
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 1,775      5.875    06/01/30   1,769
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 1,095      5.750    06/01/34   1,078
County of Hamilton Ohio Revenue Bonds 750      5.000    01/01/37   758
Lorain County Port Authority Revenue Bonds 510    6.750    12/01/40    489
                7,138
Oklahoma - 0.4%                
Tulsa Airports Improvement Trust Revenue Bonds(Ê) 1,000    5.000    06/01/35    1,149
 
Oregon - 1.8%                

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt High Yield Bond Fund 227

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Astoria Hospital Facilities Authority Revenue Bonds 1,205      5.000    08/01/41   1,421
Oregon State Facilities Authority Revenue Bonds 750      6.375    09/01/40   810
Oregon State Facilities Authority Revenue Bonds 2,500      5.000    04/01/45   2,947
Yamhill County Hospital Authority Revenue Bonds 300    5.000    11/15/36    330
                5,508
Pennsylvania - 4.8%                
Allentown Neighborhood Improvement Zone Development Authority Revenue Bonds 1,000      5.000    05/01/42   1,084
City of Harrisburg Pennsylvania General Obligation Unlimited(µ) 285      Zero coupon    09/15/22   221
Clairton Municipal Authority Revenue Bonds 240      5.000    12/01/42   272
East Hempfield Township Industrial Development Authority Revenue Bonds 600      5.000    07/01/45   651
Geisinger Authority Revenue Bonds(Ê) 100      0.956    05/01/37   88
Huntingdon County General Authority Revenue Bonds 1,000      5.000    05/01/46   1,159
Latrobe Industrial Development Authority Revenue Bonds 1,375      5.000    05/01/43   1,492
Montgomery County Industrial Development Authority Revenue Bonds 1,700      5.250    01/15/46   1,949
Northampton County General Purpose Authority Revenue Bonds 1,000      5.000    10/01/36   1,168
Pennsylvania Economic Development Financing Authority Revenue Bonds 1,000      5.000    06/30/42   1,170
Pennsylvania Higher Educational Facilities Authority Revenue Bonds 355      6.250    09/01/33   394
Pennsylvania Higher Educational Facilities Authority Revenue Bonds 950      5.500    07/15/43   1,095
Pennsylvania State High Educational Fund Revenue Bonds(Ê) 365      0.400    07/01/31   429
Pennsylvania Turnpike Commission Revenue Bonds 1,250      5.000    12/01/40   1,485
Scranton Parking Authority Revenue Bonds(µ) 2,020      5.250    06/01/39   2,023
Scranton Redevelopment Authority Revenue Bonds 100    5.000    11/15/28    107
                14,787
Puerto Rico - 7.7%                
Children's Trust Fund Revenue Bonds 12,000      Zero coupon    05/15/50   1,151
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 540      5.500    07/01/19   554
Commonwealth of Puerto Rico General Obligation Unlimited(Å) 110      5.000    07/01/21   69
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 320      5.250    07/01/24   335
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 100      5.000    07/01/31   103
Commonwealth of Puerto Rico General Obligation Unlimited(Å) 130      5.125    07/01/31   82
Commonwealth of Puerto Rico General Obligation Unlimited(Å) 235      5.000    07/01/35   148
Commonwealth of Puerto Rico General Obligation Unlimited 1,000      5.000    07/01/35   1,032
Commonwealth of Puerto Rico General Obligation Unlimited(Å) 1,250      8.000    07/01/35   816
Commonwealth of Puerto Rico General Obligation Unlimited(Å) 530      6.000    07/01/39   337
Commonwealth of Puerto Rico General Obligation Unlimited(Å) 180      6.000    07/01/40   114
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds(µ) 265      5.000    07/01/28   275
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds 20      5.000    07/01/30   14
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds 50      5.000    07/01/33   35
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds 2,920      5.250    07/01/42   2,051
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds 75      6.000    07/01/44   53
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Bonds 140      6.000    07/01/47   99
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 100      5.000    07/01/17   100
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 2,050      5.000    07/01/31   2,055
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 125      4.500    07/01/36   124
Puerto Rico Electric Power Authority Revenue Bonds(µ) 270      5.000    07/01/22   271
Puerto Rico Electric Power Authority Revenue Bonds(µ)(Ê) 915      0.738    07/01/29   659
Puerto Rico Highways & Transportation Authority Revenue Bonds(Å) 60      5.000    07/01/28   15
Puerto Rico Highways & Transportation Authority Revenue Bonds 360      5.000    07/01/28   352
Puerto Rico Highways & Transportation Authority Revenue Bonds(Å) 205      5.000    07/01/32   53
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) 160      4.750    07/01/38   152
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) 3,700      5.250    07/01/38   3,690
Puerto Rico Highways & Transportation Authority Revenue Bonds(Å) 180      5.000    07/01/42   46
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 230      5.500    07/01/17   233
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 2,230      5.500    07/01/23   2,381
Puerto Rico Public Buildings Authority Revenue Bonds(µ) 1,500      5.250    07/01/21   1,509
Puerto Rico Public Buildings Authority Revenue Bonds(µ) 425      6.000    07/01/24   442
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 115      6.750    08/01/16   59
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 155      6.250    08/01/19   53

 

See accompanying notes which are an integral part of this quarterly report.

228 Russell Tax Exempt High Yield Bond Fund

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 280      5.750    08/01/37   140
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 75      5.375    08/01/39   37
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 500      6.375    08/01/39   253
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 1,425      5.250    08/01/41   705
Puerto Rico Sales Tax Financing Corp. Revenue Bonds(µ) 14,125      Zero coupon    08/01/45   2,596
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds 235      6.125    08/01/19   80
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Bonds 610    6.500    08/01/44    310
                23,583
Rhode Island - 0.2%                
Rhode Island Health & Educational Building Corp. Revenue Bonds 500    5.000    05/15/39    586
 
South Carolina - 0.1%                
South Carolina Ports Authority Revenue Bonds 125      5.250    07/01/55   146
South Carolina State Public Service Authority Revenue Bonds 250    5.250    12/01/55    303
                449
Tennessee - 1.8%                
Chattanooga Health Educational & Housing Facility Board Revenue Bonds 650      5.000    10/01/35   764
Chattanooga-Hamilton County Hospital Authority Revenue Bonds 2,000      5.000    10/01/44   2,308
Johnson City Health & Educational Facilities Board Revenue Bonds 1,000      5.000    08/15/42   1,106
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd                
Revenue Bonds 100      5.000    07/01/40   120
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd                
Revenue Bonds 1,000      5.000    10/01/41   1,181
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd                
Revenue Bonds 100    5.000    07/01/46    120
                5,599
Texas - 6.3%                
Austin Convention Enterprises, Inc. Revenue Bonds(µ) 1,690      4.300    01/01/33   1,695
Austin Convention Enterprises, Inc. Revenue Bonds(µ) 760      5.000    01/01/34   770
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue Bonds 50      5.250    12/01/35   56
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue Bonds 65      5.000    12/01/40   70
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue Bonds 50      5.000    12/01/45   54
Central Texas Regional Mobility Authority Revenue Bonds 100      5.000    01/01/45   118
Central Texas Regional Mobility Authority Revenue Bonds 100      5.000    01/01/46   118
Central Texas Turnpike System Revenue Bonds 3,000      5.000    08/15/42   3,488
City of Aubrey Texas Revenue Bonds 700      7.250    09/01/45   724
City of Celina Texas Special Assessment 50      6.250    09/01/45   54
City of Celina Texas Special Assessment 100      7.500    09/01/45   115
City of Houston Texas Airport System Revenue Bonds 500      5.000    07/01/29   568
City of Houston Texas Airport System Revenue Bonds 1,000      5.000    07/15/30   1,133
City of Houston Texas Airport System Revenue Bonds 1,000      5.000    07/15/35   1,112
Clifton Higher Education Finance Corp. Revenue Bonds 500      5.000    12/01/45   570
Decatur Hospital Authority Revenue Bonds 200      5.250    09/01/44   220
Grand Parkway Transportation Corp. Revenue Bonds 2,500      5.500    04/01/53   2,947
Kaufman County Fresh Water Supply District No. 1-C 185      4.000    09/01/35   199
New Hope Cultural Education Facilities Corp. Revenue Bonds 55      5.000    04/01/36   64
New Hope Cultural Education Facilities Corp. Revenue Bonds 1,500      4.750    04/01/46   1,658
North East Texas Regional Mobility Authority Revenue Bonds 385      5.000    01/01/41   450
Texas City Industrial Development Corp. Revenue Bonds 1,000      4.125    12/01/45   1,044
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds 750      6.250    12/15/26   952
Texas State Transportation Revenue Bonds 100      5.000    12/31/50   116
Texas State Transportation Revenue Bonds 100      5.000    12/31/55   115
Tyler Health Facilities Development Corp. Revenue Bonds 500      5.250    11/01/27   518
Viridian Municipal Management District Special Assessment 100      4.000    12/01/21   107
Viridian Municipal Management District Special Assessment 100    4.750    12/01/43    104
                19,139
Vermont - 0.4%                
Vermont Educational & Health Buildings Financing Agency Revenue Bonds 1,050    5.000    10/01/42    1,200

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt High Yield Bond Fund 229

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                  
    Principal           Fair  
    Amount ($)   Rate   Date of   Value  
    or Shares   %   Maturity   $  
Virgin Islands - 2.2%                  
Virgin Islands Public Finance Authority Revenue Bonds(µ) 2,000      4.000    10/01/22   2,149  
Virgin Islands Public Finance Authority Revenue Bonds 1,000      6.750    10/01/37   1,056  
Virgin Islands Public Finance Authority Revenue Bonds 2,200      5.000    10/01/39   2,194  
Virgin Islands Water & Power Authority - Electric System Revenue Bonds 615      4.000    07/01/21   608  
Virgin Islands Water & Power Authority - Electric System Revenue Bonds 560    5.000    07/01/31    543  
                6,550  
Virginia - 0.5%                  
Tobacco Settlement Financing Corp. Revenue Bonds 1,000      5.200    06/01/46   992  
Tobacco Settlement Financing Corp. Revenue Bonds 290      5.000    06/01/47   282  
Virginia Small Business Financing Authority Revenue Bonds 180    5.000    01/01/40    197  
                1,471  
Washington - 1.4%                  
Washington Health Care Facilities Authority Revenue Bonds 2,315      5.000    07/01/39   2,641  
Whidbey Island Public Hospital District General Obligation Unlimited 1,500    5.500    12/01/33    1,715  
                4,356  
Wisconsin - 0.7%                  
Public Finance Authority Revenue Bonds 100      4.300    11/01/30   108  
Public Finance Authority Revenue Bonds 500      5.000    07/01/42   551  
Public Finance Authority Revenue Bonds 1,000      5.875    04/01/45   1,083  
Public Finance Authority Revenue Bonds 340    5.250    07/01/47    378  
                2,120  
Total Municipal Bonds (cost $274,948)               293,191  
 
Short-Term Investments - 5.3%                  
Russell U.S. Cash Management Fund 15,961,446 (8)         15,961  
Total Short-Term Investments (cost $15,961)               15,961  
 
Total Investments 101.3% (identified cost $290,909)               309,152  
Other Assets and Liabilities, Net - (1.3%)               (3,828 )
Net Assets - 100.0%               305,324  

 

See accompanying notes which are an integral part of this quarterly report.

230 Russell Tax Exempt High Yield Bond Fund

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                      
 
Amounts in thousands (except share and cost per unit amounts)                    
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities Date     or shares   $   $   $  
1.1%                      
California Statewide Communities Development Authority Revenue Bonds 04/28/16 250,000 104.36 261 290  
Charlotte County Industrial Development Authority Revenue Bonds 12/09/15 250,000 98.79 247 258  
Commonwealth of Puerto Rico General Obligation Unlimited 06/02/15 130,000 70.59 92 82  
Commonwealth of Puerto Rico General Obligation Unlimited 06/03/15 530,000 67.11 356 337  
Commonwealth of Puerto Rico General Obligation Unlimited 06/03/15 235,000 69.01 162 148  
Commonwealth of Puerto Rico General Obligation Unlimited 06/03/15 110,000 77.96 86 69  
Commonwealth of Puerto Rico General Obligation Unlimited 06/03/15 1,250,000 79.91 999 816  
Commonwealth of Puerto Rico General Obligation Unlimited 06/04/15 180,000 70.68 127 114  
Michigan Finance Authority Revenue Notes 09/11/15 700,000 100.00 700 701  
Mohegan Tribal Finance Authority Revenue Bonds 10/06/15 350,000 95.42 334 354  
Puerto Rico Highways & Transportation Authority Revenue Bonds 06/02/15 60,000 51.49 31 15  
Puerto Rico Highways & Transportation Authority Revenue Bonds 06/02/15 180,000 54.46 98 46  
Puerto Rico Highways & Transportation Authority Revenue Bonds 06/02/15 205,000 55.16 113 53  
                    3,283  
 For a description of restricted securities see note 7 in the Notes to Quarterly Report.              

 

Interest Rate Swap Contracts              
Amounts in thousands                
            Termination Fair Value  
Counterparty Notional Amount Fund Receives Fund Pays   Date $  
Morgan Stanley USD 2,200 Three Month LIBOR 2.750 %   09/21/46 (477 )
Total Fair Value on Open Interest Rate Swap Contracts Premiums Paid (Received) - $366 (å)       (477 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt High Yield Bond Fund 231

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                    
Amounts in thousands                    
 
        Fair Value            
                Practical    
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a) Total
Municipal Bonds                    
Alabama $ — $ 5,708 $ — $ — $ 5,708
Alaska   —   3,018   —   —   3,018
Arizona   —   3,145   —   —   3,145
California   —   39,325   —   —   39,325
Colorado   —   4,516   —   —   4,516
Connecticut   —   354   —   —   354
District of Columbia   —   3,469   —   —   3,469
Florida   —   24,137   —   —   24,137
Georgia   —   3,565   —   —   3,565
Guam   —   4,533   —   —   4,533
Hawaii   —   2,375   —   —   2,375
Illinois   —   29,188   —   —   29,188
Indiana   —   3,502   —   —   3,502
Iowa   —   856   —   —   856
Kentucky   —   3,873   —   —   3,873
Louisiana   —   4,335   —   —   4,335
Maryland   —   2,848   —   —   2,848
Massachusetts   —   5,797   —   —   5,797
Michigan   —   13,298   —   —   13,298
Minnesota   —   4,406   —   —   4,406
Missouri   —   2,366   —   —   2,366
Nevada   —   588   —   —   588
New Hampshire   —   592   —   —   592
New Jersey   —   15,062   —   —   15,062
New York   —   15,386   —   —   15,386
North Carolina   —   3,313   —   —   3,313
Ohio   —   7,138   —   —   7,138
Oklahoma   —   1,149   —   —   1,149
Oregon   —   5,508   —   —   5,508
Pennsylvania   —   14,787   —   —   14,787
Puerto Rico   —   23,583   —   —   23,583
Rhode Island   —   586   —   —   586
South Carolina   —   449   —   —   449
Tennessee   —   5,599   —   —   5,599
Texas   —   19,139   —   —   19,139
Vermont   —   1,200   —   —   1,200
Virgin Islands   —   6,550   —   —   6,550
Virginia   —   1,471   —   —   1,471
Washington   —   4,356   —   —   4,356
Wisconsin   —   2,120   —   —   2,120
Short-Term Investments — — — 15,961 15,961
 
Total Investments $ — $ 293,190 $ — $ 15,961 $ 309,151
 
 
Other Financial Instruments                    

 

See accompanying notes which are an integral part of this quarterly report.

232 Russell Tax Exempt High Yield Bond Fund

 

Russell Investment Company
Russell Tax Exempt High Yield Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
Amounts in thousands                        
 
        Fair Value                
                Practical      
Portfolio Summary Level 1 Level 2   Level 3 Expedient (a) Total  
Liabilities                        
Interest Rate Swap Contracts — (477 ) — — (477 )
Total Other Financial Instruments $ — $ (477 ) $ — $ — $ (477 )

 

(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not
been classified in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts
presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the
Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt High Yield Bond Fund 233

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Municipal Bonds - 96.1%                
Alabama - 1.4%                
Alabama 21st Century Authority Revenue Bonds 1,120      5.000    06/01/18   1,203
Alabama 21st Century Authority Revenue Bonds 545      5.000    06/01/20   623
Alabama Public School & College Authority Revenue Bonds 3,385      5.000    05/01/23   4,208
Alabama Special Care Facilities Financing Authority-Birmingham Alabama Revenue                
Bonds 850      5.250    06/01/25   940
Birmingham Water Works Board Revenue Bonds(µ) 1,275      5.000    01/01/17   1,299
County of Jefferson Alabama General Obligation Limited(µ) 4,100      5.000    04/01/22   4,170
County of Jefferson Alabama Sewer Revenue Bonds 2,230      5.000    10/01/22   2,570
Homewood Educational Building Authority Revenue Bonds(µ) 485      5.000    12/01/26   574
Limestone County Board of Education Special Tax(µ) 1,000      5.000    11/01/30   1,190
Limestone County Board of Education Special Tax(µ) 1,000      5.000    11/01/31   1,187
Mobile County Board of School Commissioners Revenue Bonds 1,445    5.000    03/01/32    1,680
                19,644
Alaska - 0.1%                
Alaska Railroad Corp. Revenue Bonds 500      5.000    08/01/18   536
City of Valdez Alaska Revenue Bonds 750      5.000    01/01/21   862
Northern Tobacco Securitization Corp. Revenue Bonds 350    5.000    06/01/32    350
                1,748
Arizona - 2.4%                
Apache County Industrial Development Authority Revenue Bonds 3,000      4.500    03/01/30   3,329
Arizona Health Facilities Authority Revenue Bonds 2,000      5.250    01/01/18   2,132
Arizona Health Facilities Authority Revenue Bonds 2,000      5.000    02/01/18   2,124
Arizona Health Facilities Authority Revenue Bonds 2,000      5.250    01/01/22   2,128
Arizona Health Facilities Authority Revenue Bonds 2,255      5.000    02/01/34   2,570
Arizona Transportation Board Revenue Bonds 2,685      5.000    07/01/25   3,444
Arizona Water Infrastructure Finance Authority Revenue Bonds 1,000      5.000    10/01/18   1,095
County of Pinal Arizona Revenue Bonds 2,455      5.000    08/01/21   2,915
County of Pinal Arizona Revenue Bonds 1,775      5.000    08/01/25   2,217
Maricopa County Pollution Control Corp. Revenue Bonds(Ê) 2,310      5.200    06/01/43   2,560
Salt River Project Agricultural Improvement & Power District Revenue Bonds 1,635      5.000    01/01/25   1,804
Salt Verde Financial Corp. Revenue Bonds 1,045      5.250    12/01/24   1,274
Student & Academic Services LLC Revenue Bonds(µ) 200      5.000    06/01/26   246
Student & Academic Services LLC Revenue Bonds(µ) 425      5.000    06/01/27   519
Student & Academic Services LLC Revenue Bonds(µ) 390      5.000    06/01/28   473
Town of Marana Arizona Revenue Bonds 2,240      5.000    07/01/26   2,746
Town of Marana Arizona Revenue Bonds 800      5.000    07/01/27   975
Town of Marana Arizona Revenue Bonds 1,735    5.000    07/01/28    2,099
                34,650
Arkansas - 0.2%                
County of Pulaski Arkansas Revenue Bonds 1,000      5.000    03/01/29   1,251
Henderson State University Revenue Bonds(µ) 850      2.000    11/01/16   853
Henderson State University Revenue Bonds(µ) 220      3.000    11/01/18   230
Pulaski County Public Facilities Board Revenue Bonds 440    5.000    12/01/22    534
                2,868
California - 8.5%                
Abag Finance Authority for Nonprofit Corps. Revenue Bonds 1,340      6.000    08/01/30   1,643
Alum Rock Union Elementary School District General Obligation Unlimited(µ) 400      5.000    08/01/20   465
Alum Rock Union Elementary School District General Obligation Unlimited(µ) 600      5.000    08/01/21   716
Alum Rock Union Elementary School District General Obligation Unlimited(µ) 2,855      5.000    08/01/32   3,512
Brentwood Infrastructure Financing Authority Special Assessment(µ) 1,000      5.000    09/02/29   1,210
California Health Facilities Financing Authority Revenue Bonds 1,000      5.000    11/15/29   1,138
California State Public Works Board Revenue Bonds 1,100      5.000    12/01/16   1,117
California State Public Works Board Revenue Bonds 825      4.000    12/01/34   940
California Statewide Communities Development Authority Revenue Bonds 640      3.500    11/01/18   654
California Statewide Communities Development Authority Revenue Bonds 2,260      5.000    04/01/19   2,519
California Statewide Communities Development Authority Revenue Bonds 1,405      6.000    05/15/23   1,543

 

See accompanying notes which are an integral part of this quarterly report.

234 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)              
    Principal         Fair
    Amount ($)   Rate   Date of Value
    or Shares   %   Maturity $
California Statewide Communities Development Authority Revenue Bonds 1,015      5.000    05/15/30 1,250
California Statewide Communities Development Authority Revenue Bonds 1,565      6.125    11/01/33 1,831
California Statewide Communities Development Authority Revenue Bonds 1,000      5.000    08/01/34 1,200
California Statewide Communities Development Authority Revenue Bonds 1,000      5.000    12/01/36 1,160
Centinela Valley Union High School District General Obligation Unlimited 500      5.750    08/01/27 632
Centinela Valley Union High School District General Obligation Unlimited 1,000      5.750    08/01/28 1,264
Centinela Valley Union High School District General Obligation Unlimited 650      5.750    08/01/29 821
City of Fresno California Airport Revenue Bonds(µ) 225      5.000    07/01/22 266
City of Los Angeles Department of Airports Revenue Bonds 1,655      5.000    05/15/29 1,901
City of Vallejo California Water Revenue Bonds 2,755      5.250    05/01/27 3,364
City of Vallejo California Water Revenue Bonds 3,105      5.250    05/01/29 3,778
County of Los Angeles California Certificate Of Participation 200      5.000    09/01/20 233
County of Los Angeles California Certificate Of Participation 500      5.000    03/01/21 589
County of Los Angeles California Certificate Of Participation 125      5.000    09/01/21 149
County of Los Angeles California Certificate Of Participation 430      5.000    09/01/22 522
County of Sacramento California Airport System Revenue Bonds 2,000      5.000    07/01/22 2,165
Dinuba Redevelopment Agency Tax Allocation(µ) 590      5.000    09/01/33 702
El Monte Union High School District General Obligation Unlimited(µ) 4,750      5.500    06/01/34 5,400
Emeryville Redevelopment Agency Successor Agency Tax Allocation 1,980      5.000    09/01/20 2,305
Florin Resource Conservation District Revenue Bonds(µ) 300      4.000    09/01/17 309
Florin Resource Conservation District Revenue Bonds(µ) 455      4.000    09/01/18 484
Florin Resource Conservation District Revenue Bonds(µ) 100      5.000    09/01/23 122
Florin Resource Conservation District Revenue Bonds(µ) 450      5.000    09/01/24 557
Golden State Tobacco Securitization Corp. Revenue Bonds(µ) 750      4.600    06/01/23 799
Jurupa California Public Authority Special Tax Revenue Bonds 425      3.500    09/01/17 439
Modesto Irrigation District Revenue Bonds 1,425      5.000    07/01/17 1,482
Oxnard Financing Authority Revenue Bonds(µ) 740      5.000    06/01/21 870
Oxnard Financing Authority Revenue Bonds(µ) 775      5.000    06/01/34 924
Oxnard School District General Obligation Unlimited(µ) 165      5.250    08/01/26 212
Oxnard School District General Obligation Unlimited(µ) 810      5.250    08/01/28 1,028
Oxnard School District General Obligation Unlimited(µ) 325      5.250    08/01/29 411
Pajaro Valley Water Management Agency Revenue Bonds(µ) 775      4.000    03/01/18 818
Riverside County Public Financing Authority Tax Allocation(µ) 2,270      5.000    10/01/27 2,850
Sacramento Unified School District General Obligation Unlimited(µ) 4,000      5.000    07/01/31 4,729
San Diego Public Facilities Financing Authority Water Revenue Bonds 8,415      5.000    08/01/26 11,157
San Francisco City & County Public Utilities Commission Water Revenue Bonds 2,685      5.000    11/01/27 3,220
San Joaquin Hills Transportation Corridor Agency Revenue Bonds 5,000      5.000    01/15/29 5,997
San Ysidro School District Certificate Of Participation(µ) 1,175      5.000    09/01/28 1,433
Shasta Lake Public Finance Authority Tax Allocation(µ) 385      5.000    12/01/25 489
South Orange County Public Financing Authority Special Tax 900      5.000    08/15/29 1,027
Southern California Public Power Authority Revenue Bonds 1,500      5.000    07/01/18 1,627
Southern California Public Power Authority Revenue Bonds 1,000      5.000    07/01/23 1,154
State of California Department of Water Resources Power Supply Revenue Bonds 1,000      5.000    05/01/17 1,034
State of California Department of Water Resources Revenue Bonds(ae) 860      5.000    06/01/18 931
State of California Department of Water Resources Revenue Bonds 140      5.000    12/01/21 151
State of California General Obligation Unlimited(µ) 1,000      6.000    02/01/17 1,027
State of California General Obligation Unlimited(ae) 635      5.250    07/01/19 721
State of California General Obligation Unlimited 2,000      5.000    02/01/20 2,293
State of California General Obligation Unlimited 2,500      5.500    04/01/21 2,816
State of California General Obligation Unlimited 365      5.250    07/01/21 414
State of California General Obligation Unlimited 1,000      5.250    03/01/22 1,158
State of California General Obligation Unlimited 7,095      5.000    11/01/25 8,899
State of California General Obligation Unlimited 5,760      5.000    03/01/26 7,403
State of California General Obligation Unlimited 2,500      5.250    09/01/28 3,025
State of California General Obligation Unlimited 2,685      5.000    10/01/29 2,875
State of California General Obligation Unlimited 450      5.000    02/01/31 538
Tuolumne Wind Project Authority Revenue Bonds 1,500      5.000    01/01/18 1,592

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 235


Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Watereuse Finance Authority Revenue Bonds 1,230      5.500    05/01/36   1,538
West Kern Community College District Certificate Of Participation(µ) 470    3.000    11/01/16    473
                124,015
Colorado - 2.2%                
City & County of Denver Colorado Airport System Revenue Bonds 1,965      5.000    11/15/25   2,364
City of Colorado Springs Colorado Utilities System Revenue Bonds 4,000      5.000    11/15/18   4,400
Colorado Educational & Cultural Facilities Authority Revenue Bonds 300      2.000    12/01/16   302
Colorado Educational & Cultural Facilities Authority Revenue Bonds 2,000      5.000    04/01/18   2,140
Colorado Educational & Cultural Facilities Authority Revenue Bonds 1,220      5.000    10/01/20   1,394
Colorado Educational & Cultural Facilities Authority Revenue Bonds 1,000      5.000    08/15/30   1,161
Colorado Health Facilities Authority Revenue Bonds 255      5.250    06/01/23   256
Colorado Health Facilities Authority Revenue Bonds 1,500      5.000    09/01/30   1,755
Colorado Health Facilities Authority Revenue Bonds 685      5.250    02/01/31   774
Denver Convention Center Hotel Authority Revenue Bonds(µ) 1,265      5.000    12/01/35   1,272
Denver Urban Renewal Authority Tax Allocation 1,575      5.000    12/01/21   1,844
E-470 Public Highway Authority Revenue Bonds(µ) 850      5.000    09/01/17   853
E-470 Public Highway Authority Revenue Bonds 2,250      5.375    09/01/26   2,537
Eaton Area Park & Recreation District General Obligation Limited 470      5.500    12/01/30   522
Park Creek Metropolitan District Revenue Bonds 1,860      4.000    12/01/20   2,044
Regional Transportation District Certificate Of Participation 6,725    5.000    06/01/27    8,140
                31,758
Connecticut - 2.0%                
City of Bridgeport Connecticut General Obligation Unlimited(µ) 965      5.000    07/01/29   1,159
City of Hartford Connecticut General Obligation Unlimited(µ) 375      5.000    10/01/18   410
City of New Haven Connecticut General Obligation Unlimited(µ) 2,000      5.000    08/01/21   2,337
City of New Haven Connecticut General Obligation Unlimited(µ) 1,915      5.000    09/01/30   2,315
Connecticut State Health & Educational Facility Authority Revenue Bonds 2,500      5.000    07/01/25   2,712
State of Connecticut General Obligation Unlimited 6,500      5.000    11/15/21   7,713
State of Connecticut General Obligation Unlimited 5,685      5.000    11/15/22   6,874
State of Connecticut Special Tax Revenue Bonds 4,470    5.000    10/01/25    5,553
                29,073
Delaware - 0.1%                
Delaware Transportation Authority Revenue Bonds 1,000    5.000    07/01/17    1,041
 
District of Columbia - 0.3%                
District of Columbia Revenue Bonds 2,000      5.000    06/01/36   2,294
Metropolitan Washington Airports Authority Revenue Bonds 1,500    5.000    10/01/35    1,721
                4,015
Florida - 9.0%                
Capital Projects Finance Authority Revenue Bonds(µ) 220      5.125    10/01/21   220
Citizens Property Insurance Corp. Revenue Bonds 2,500      5.000    06/01/18   2,696
Citizens Property Insurance Corp. Revenue Bonds 2,495      5.000    06/01/19   2,784
Citizens Property Insurance Corp. Revenue Bonds 2,500      5.000    06/01/20   2,878
Citizens Property Insurance Corp. Revenue Bonds 7,385      5.000    06/01/22   8,941
City of Lakeland Florida Department of Electric Utilities Revenue Bonds(µ) 2,000      5.000    10/01/17   2,103
City of Miami Beach Florida Parking Revenue Bonds(µ) 395      5.000    09/01/32   485
City of Miami Beach Florida Parking Revenue Bonds(µ) 1,755      5.000    09/01/33   2,146
City of North Port Florida Special Assessment(µ) 715      5.000    07/01/25   873
City of North Port Florida Special Assessment(µ) 1,135      5.000    07/01/26   1,384
City of Pembroke Pines Florida Revenue Bonds(µ) 1,000      5.000    10/01/16   1,007
City of Tallahassee Florida Revenue Bonds 500      5.000    12/01/27   617
City of Tallahassee Florida Revenue Bonds 650      5.000    12/01/28   798
City of Tampa Florida Revenue Bonds 1,000      4.000    09/01/33   1,071
Collier County Health Facilities Authority Revenue Bonds 350      2.000    05/01/17   353
Collier County Industrial Development Authority Revenue Bonds 1,695      5.500    10/01/26   1,997
County of Miami-Dade Florida Aviation Revenue Bonds 1,235      5.250    10/01/30   1,439
County of Miami-Dade Florida Revenue Bonds 3,000      5.000    10/01/28   3,596
County of Miami-Dade Florida Revenue Bonds 3,600      5.000    10/01/29   4,301

 

See accompanying notes which are an integral part of this quarterly report.

236 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
County of Miami-Dade Florida Revenue Bonds(µ) 4,310      Zero coupon    10/01/35   2,130
County of Miami-Dade Florida Water & Sewer System Revenue Bonds(µ) 1,500      5.250    10/01/19   1,709
County of Orange Florida Sales Tax Revenue Bonds 8,885      5.000    01/01/20   10,132
Escambia County Health Facilities Authority Revenue Bonds 2,345      6.000    08/15/36   2,728
Florida Municipal Power Agency Revenue Bonds 4,660      5.000    10/01/28   5,954
JEA Electric System Revenue Bonds 1,000      5.000    10/01/17   1,051
JEA Electric System Revenue Bonds 645      5.000    10/01/20   750
Kissimmee Utility Authority Revenue Bonds(µ) 1,000      5.000    10/01/17   1,050
Miami Beach Health Facilities Authority Revenue Bonds 200      4.000    11/15/16   202
Miami Beach Health Facilities Authority Revenue Bonds 125      4.000    11/15/18   133
Miami Beach Health Facilities Authority Revenue Bonds 5,930      5.000    11/15/29   6,783
Miami-Dade County Expressway Authority Revenue Bonds 350      5.000    07/01/18   378
Mid-Bay Bridge Authority Revenue Bonds 455      5.000    10/01/23   546
Mid-Bay Bridge Authority Revenue Bonds 2,500      7.250    10/01/34   3,283
Orange County Health Facilities Authority Revenue Bonds 3,000      5.000    10/01/39   3,630
Orlando Utilities Commission Revenue Bonds 3,000      5.000    10/01/19   3,400
Orlando-Orange County Expressway Authority Revenue Bonds 4,145      5.000    07/01/20   4,774
Palm Beach County Health Facilities Authority Revenue Bonds 1,000      3.000    12/01/17   1,026
Reedy Creek Improvement District General Obligation Limited 850      5.000    06/01/20   981
Reedy Creek Improvement District General Obligation Limited 5,000      5.000    06/01/25   6,161
Reedy Creek Improvement District General Obligation Limited 4,870      5.000    06/01/26   6,008
South Miami Health Facilities Authority Revenue Bonds 750      5.000    08/15/18   786
State of Florida General Obligation Unlimited 11,000      5.000    06/01/21   13,115
State of Florida General Obligation Unlimited 2,990      5.000    06/01/22   3,648
Tampa Sports Authority Revenue Bonds 6,790      5.000    01/01/22   8,130
Volusia County School Board Certificate Of Participation(µ) 1,730    5.000    08/01/32    2,125
                130,302
Georgia - 1.5%                
City of Atlanta Department of Aviation Revenue Bonds 2,500      5.000    01/01/20   2,850
City of Atlanta Department of Aviation Revenue Bonds 825      5.250    01/01/30   963
City of Atlanta Georgia General Obligation Limited 3,415      5.000    12/01/21   4,120
City of Atlanta Georgia Water & Wastewater Revenue Bonds 1,000      6.000    11/01/20   1,170
City of Atlanta Georgia Water & Wastewater Revenue Bonds(µ) 2,000      5.500    11/01/23   2,299
City of Atlanta Georgia Water & Wastewater Revenue Bonds 1,300      6.000    11/01/25   1,521
Glynn-Brunswick Memorial Hospital Authority Revenue Bonds 1,000      5.000    08/01/21   1,171
Glynn-Brunswick Memorial Hospital Authority Revenue Bonds 1,220      5.000    08/01/22   1,452
Municipal Electric Authority of Georgia Revenue Bonds(µ) 850      6.250    01/01/17   870
Private Colleges & Universities Authority Revenue Bonds 1,500      5.000    09/01/16   1,506
Private Colleges & Universities Authority Revenue Bonds 565      5.000    04/01/17   580
Private Colleges & Universities Authority Revenue Bonds 1,190      5.000    04/01/27   1,426
Savannah Hospital Authority Revenue Bonds 1,000      5.500    07/01/28   1,210
State of Georgia General Obligation Unlimited 1,240    5.000    07/01/17    1,291
                22,429
Guam - 0.9%                
Guam Government Waterworks Authority Revenue Bonds 1,240      5.000    07/01/28   1,445
Guam Government Waterworks Authority Revenue Bonds 5,200      5.000    07/01/29   6,032
Guam Power Authority Revenue Bonds 2,500      5.500    10/01/30   2,808
Guam Power Authority Revenue Bonds 1,000      5.000    10/01/34   1,129
Territory of Guam Revenue Bonds 500      5.375    12/01/24   549
Territory of Guam Revenue Bonds 785    5.000    01/01/32    855
                12,818
Idaho - 0.7%                
Idaho Health Facilities Authority Revenue Bonds 1,000      5.000    09/01/28   1,179
Idaho Health Facilities Authority Revenue Bonds 710      5.000    09/01/29   834
Idaho Health Facilities Authority Revenue Bonds 1,500      5.000    12/01/30   1,782
Idaho Housing & Finance Association Revenue Bonds(µ) 1,330      5.250    07/15/21   1,450
Idaho Housing & Finance Association Revenue Bonds(µ) 1,665      5.250    07/15/26   1,815
Idaho Housing & Finance Association Revenue Bonds 1,670      5.000    07/15/31   1,988

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 237

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Idaho State Building Authority Revenue Bonds 940    5.000    09/01/23    1,109
                10,157
Illinois - 8.6%                
Chicago Board of Education General Obligation Unlimited(µ) 1,405      5.000    12/01/19   1,458
Chicago Board of Education General Obligation Unlimited 5,000      7.000    12/01/26   5,327
Chicago Board of Education General Obligation Unlimited(µ) 2,120      5.000    12/01/27   2,197
Chicago Board of Education General Obligation Unlimited(µ) 1,750      Zero coupon    12/01/30   951
Chicago Midway International Airport Revenue Bonds 4,435      5.000    01/01/34   5,223
Chicago Public Building Commission Revenue Bonds(µ) 1,580      5.250    12/01/18   1,656
City of Chicago Illinois General Obligation Unlimited 715      5.000    01/01/17   724
City of Chicago Illinois General Obligation Unlimited 1,115      5.000    01/01/19   1,154
City of Chicago Illinois General Obligation Unlimited(µ) 575      5.000    12/01/19   582
City of Chicago Illinois General Obligation Unlimited(µ) 380      5.000    01/01/20   385
City of Chicago Illinois General Obligation Unlimited(µ) 250      4.250    01/01/21   251
City of Chicago Illinois General Obligation Unlimited(µ) 2,535      4.250    12/01/21   2,555
City of Chicago Illinois General Obligation Unlimited 1,500      5.000    01/01/24   1,542
City of Chicago Illinois General Obligation Unlimited(µ) 2,825      5.250    01/01/24   2,957
City of Chicago Illinois Midway Airport Revenue Bonds 940      5.000    01/01/30   1,120
City of Chicago Illinois Motor Fuel Tax Revenue Bonds 1,560      5.000    01/01/28   1,672
City of Chicago Illinois Motor Fuel Tax Revenue Bonds 725      5.000    01/01/29   774
City of Chicago Illinois Wastewater Transmission Revenue Bonds 625      5.000    01/01/18   655
City of Chicago Illinois Wastewater Transmission Revenue Bonds 505      5.000    01/01/29   584
City of Chicago Illinois Wastewater Transmission Revenue Bonds 1,630      5.000    01/01/35   1,872
City of Chicago Illinois Waterworks Revenue Bonds 1,000      5.000    11/01/34   1,160
City of Chicago Illinois Waterworks Revenue Bonds(µ) 100      5.000    11/01/24   101
City of Freeport Illinois General Obligation Unlimited(µ) 435      2.000    12/01/17   443
City of Freeport Illinois General Obligation Unlimited(µ) 650      2.000    12/01/18   664
City of Peoria Illinois General Obligation Unlimited 625      5.000    01/01/22   664
City of Springfield Illinois Electric Revenue Bonds 1,280      5.000    03/01/32   1,530
Cook County Community College District No. 508 General Obligation Unlimited 1,500      5.250    12/01/28   1,770
Cook County Community College District No. 508 General Obligation Unlimited 2,000      5.000    12/01/33   2,283
County of Cook Illinois General Obligation Unlimited 350      5.000    11/15/21   405
County of Cook Illinois General Obligation Unlimited 5,450      5.000    11/15/29   6,618
County of Du Page Illinois General Obligation Limited 600      5.000    01/01/28   759
Illinois Finance Authority Revenue Bonds 1,000      5.000    11/15/18   1,094
Illinois Finance Authority Revenue Bonds 1,000      5.375    10/01/23   1,129
Illinois Finance Authority Revenue Bonds 1,000      5.375    10/01/24   1,128
Illinois Finance Authority Revenue Bonds 1,000      6.000    10/01/28   1,092
Illinois Finance Authority Revenue Bonds 2,500      5.750    08/15/29   2,806
Illinois Sports Facilities Authority Revenue Bonds(µ) 1,000      5.250    06/15/31   1,155
Illinois State Toll Highway Authority Revenue Bonds 5,000      5.000    12/01/32   6,179
McHenry County Community Unit School District No. 12 Johnsburg General Obligation                
Unlimited(µ) 850      5.000    01/01/33   983
Metropolitan Pier & Exposition Authority Revenue Bonds 1,500      5.000    12/15/22   1,545
Metropolitan Pier & Exposition Authority Revenue Bonds 5,565      5.000    12/15/28   6,281
Northern Illinois Municipal Power Agency Revenue Bonds(µ) 4,025      5.000    01/01/23   4,248
Railsplitter Tobacco Settlement Authority Revenue Bonds 1,000      5.000    06/01/18   1,072
Railsplitter Tobacco Settlement Authority Revenue Bonds 1,000      5.000    06/01/19   1,109
Southern Illinois University Revenue Bonds(µ) 1,470      5.000    04/01/27   1,766
Southern Illinois University Revenue Bonds(µ) 850      5.000    04/01/28   1,013
Southwestern Illinois Development Authority Revenue Bonds(µ) 1,005      5.000    10/15/33   1,189
State of Illinois General Obligation Unlimited 2,000      5.000    04/01/21   2,217
State of Illinois General Obligation Unlimited 3,000      5.000    07/01/21   3,337
State of Illinois General Obligation Unlimited 1,000      5.000    08/01/22   1,125
State of Illinois General Obligation Unlimited 2,290      5.000    08/01/25   2,524
State of Illinois General Obligation Unlimited 2,175      5.000    05/01/30   2,396
State of Illinois Revenue Bonds 12,500      5.000    06/15/21   14,552
State of Illinois Sports Facilities Authority Revenue Bonds 1,125      5.000    06/15/18   1,197

 

See accompanying notes which are an integral part of this quarterly report.

238 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
State of Illinois Sports Facilities Authority Revenue Bonds 500      5.000    06/15/19   548
University of Illinois Revenue Bonds 1,115      5.000    04/01/20   1,256
University of Illinois Revenue Bonds 1,470      5.500    04/01/31   1,687
Village of Bellwood Illinois General Obligation Unlimited 1,000      5.875    12/01/27   1,209
Village of Bellwood Illinois General Obligation Unlimited(µ) 2,075      5.000    12/01/32   2,468
Village of East Dundee Illinois General Obligation Unlimited(µ) 600      4.000    12/01/23   687
Village of Franklin Park Illinois General Obligation Unlimited(µ) 295      5.000    07/01/18   318
Village of Melrose Park Illinois General Obligation Unlimited(µ) 530      2.000    12/15/17   540
Volo Village Special Service Area No. 3 & 6 Special Tax(µ) 1,095      5.000    03/01/34   1,302
West Chicago Park District General Obligation Unlimited(µ) 795      5.250    12/01/29   869
Western Illinois Economic Development Authority Revenue Bonds(µ) 1,140      5.000    01/01/27   1,361
Western Illinois Economic Development Authority Revenue Bonds(µ) 725      5.000    01/01/28   862
Western Illinois University Revenue Bonds(µ) 485      5.000    04/01/21   550
Western Illinois University Revenue Bonds(µ) 560    5.000    04/01/24    667
                125,497
Indiana - 0.2%                
City of Indianapolis Indiana Gas Utility Revenue Bonds(µ) 1,000      5.000    08/15/23   1,148
Indianapolis Local Public Improvement Bond Bank Revenue Bonds 1,000    5.000    02/01/18    1,066
                2,214
Iowa - 0.9%                
City of Ames Iowa Revenue Bonds 2,000      5.000    06/15/31   2,450
Iowa Finance Authority Revenue Bonds 4,000      5.000    07/01/28   4,712
Iowa Higher Education Loan Authority Revenue Bonds 1,625      5.000    12/01/18   1,787
Xenia Rural Water District Revenue Bonds 3,000    5.000    12/01/28    3,664
                12,613
Kansas - 0.3%                
Seward County Unified School District No. 480 Liberal General Obligation Unlimited 4,000    5.000    09/01/30    4,753
 
Kentucky - 0.6%                
Commonwealth of Kentucky Certificate Of Participation 275      2.000    06/15/17   278
County of Harrison Kentucky Revenue Notes 1,000      1.500    05/01/17   1,001
County of Pulaski Kentucky General Obligation Unlimited(µ) 170      3.000    12/01/17   175
County of Pulaski Kentucky General Obligation Unlimited(µ) 165      3.000    12/01/19   175
Kenton County School District Finance Corp. Revenue Bonds 330      2.000    10/01/16   331
Kentucky Economic Development Finance Authority Revenue Bonds 2,035      4.000    07/01/31   2,177
Kentucky Municipal Power Agency Revenue Bonds(µ) 1,500      5.000    09/01/19   1,674
Louisville/Jefferson County Metropolitan Government Revenue Bonds 2,100    5.000    10/01/30    2,578
                8,389
Louisiana - 1.9%                
City of New Orleans Louisiana Sewerage Service Revenue Bonds 250      5.000    06/01/27   304
City of New Orleans Louisiana Sewerage Service Revenue Bonds 1,000      5.000    06/01/35   1,177
City of Shreveport Louisiana Water & Sewer Revenue Bonds(µ) 2,955      5.000    12/01/32   3,591
City of Shreveport Louisiana Water & Sewer Revenue Bonds(µ) 1,000      5.000    12/01/33   1,210
Lafayette Consolidated Government Revenue Bonds(µ) 805      5.000    11/01/20   928
Lafayette Consolidated Government Revenue Bonds(µ) 700      5.000    11/01/29   849
Louisiana Local Government Environmental Facilities & Community Development                
Authority Revenue Bonds 300      5.000    11/01/19   339
Louisiana Local Government Environmental Facilities & Community Development                
Authority Revenue Bonds(µ) 1,160      5.000    08/01/22   1,372
Louisiana Public Facilities Authority Revenue Bonds 1,000      5.000    07/01/19   1,113
Louisiana Public Facilities Authority Revenue Bonds(µ) 1,615      5.000    09/01/29   1,924
Louisiana Public Facilities Authority Revenue Bonds 250      5.000    05/15/30   306
Louisiana Public Facilities Authority Revenue Bonds 595      5.000    11/01/33   708
Louisiana State Citizens Property Insurance Corp. Revenue Bonds(µ) 2,460      6.750    06/01/26   2,736
State of Louisiana Gasoline & Fuels Tax Revenue Bonds 7,000      5.000    05/01/21   8,316
State of Louisiana General Obligation Unlimited 850      5.000    08/01/24   1,060
State of Louisiana Revenue Bonds 1,300    5.000    06/15/28    1,609
                27,542
Maryland - 0.3%                

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 239

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
County of Montgomery Maryland General Obligation Unlimited 1,350      5.000    07/01/19   1,521
Maryland Economic Development Corp. Revenue Bonds 1,155      5.125    06/01/20   1,312
Maryland Economic Development Corp. Revenue Bonds 885    6.200    09/01/22    1,002
                3,835
Massachusetts - 0.8%                
Commonwealth of Massachusetts General Obligation Limited 1,000      5.500    10/01/16   1,008
Commonwealth of Massachusetts General Obligation Limited(µ)(Ê) 3,000      0.480    12/01/30   2,723
Commonwealth of Massachusetts Revenue Bonds 4,000      5.000    06/15/20   4,643
Massachusetts Clean Water Trust (The) Revenue Bonds 1,090      5.000    08/01/16   1,090
Massachusetts Development Finance Agency Revenue Bonds 1,675    5.000    07/01/31    2,060
                11,524
Michigan - 3.6%                
Brighton Area School District General Obligation Unlimited 1,525      5.000    05/01/26   1,807
City of Detroit Michigan Sewage Disposal System Revenue Bonds 3,500      5.000    07/01/32   3,976
City of Detroit Michigan Water Supply System Revenue Bonds(µ) 1,015      5.000    07/01/18   1,018
City of Detroit Michigan Water Supply System Revenue Bonds(µ) 170      4.500    07/01/25   171
County of Wayne Michigan General Obligation Limited(µ) 3,000      5.000    02/01/34   3,080
Detroit City School District General Obligation Unlimited(µ) 1,000      6.000    05/01/19   1,128
Grand Rapids Public Schools General Obligation Unlimited(µ) 2,430      5.000    05/01/34   2,969
Grand Rapids Public Schools General Obligation Unlimited(µ) 1,000      5.000    05/01/35   1,217
Kent Hospital Finance Authority Revenue Bonds 1,505      5.000    11/15/19   1,697
Michigan Finance Authority Revenue Bonds 450      5.000    07/01/19   499
Michigan Finance Authority Revenue Bonds 600      5.000    12/01/20   675
Michigan Finance Authority Revenue Bonds 730      5.000    12/01/21   835
Michigan Finance Authority Revenue Bonds 770      5.000    12/01/22   895
Michigan Finance Authority Revenue Bonds 655      5.000    12/01/23   767
Michigan Finance Authority Revenue Bonds 2,000      5.000    04/01/25   2,438
Michigan Finance Authority Revenue Bonds 1,000      5.000    11/01/27   1,176
Michigan Finance Authority Revenue Bonds 4,655      5.000    07/01/28   5,489
Michigan Finance Authority Revenue Bonds 1,375      5.000    07/01/29   1,614
Michigan Finance Authority Revenue Bonds 3,000      5.000    11/15/29   3,643
Michigan Finance Authority Revenue Bonds 1,000      5.000    07/01/30   1,181
Michigan Finance Authority Revenue Bonds 500      5.000    07/01/35   588
Michigan Finance Authority Revenue Bonds 585      5.000    12/01/36   648
Michigan State Building Authority Revenue Bonds 125      5.000    04/15/22   150
Michigan Strategic Fund Revenue Bonds 1,015      5.250    06/01/32   1,087
Michigan Strategic Fund Tax Allocation(Ê) 5,000      4.125    07/01/45   5,110
Michigan Tobacco Settlement Finance Authority Revenue Bonds 3,170      5.125    06/01/22   3,138
Royal Oak School District General Obligation Unlimited 1,435      5.000    05/01/18   1,544
Saline Economic Development Corp. Revenue Bonds 485      5.250    06/01/32   520
Wayne County Airport Authority Revenue Bonds 2,000      5.000    12/01/17   2,107
Wayne County Airport Authority Revenue Bonds 435    5.000    12/01/29    529
                51,696
Minnesota - 0.8%                
City of Minneapolis Minnesota Revenue Bonds 1,250      5.000    08/01/17   1,305
City of Minneapolis Minnesota Revenue Bonds 1,855      6.375    11/15/23   2,097
City of Rochester Minnesota Revenue Bonds(Ê) 1,125      4.000    11/15/30   1,208
City of Saint Louis Park Minnesota Revenue Bonds 1,165      5.500    07/01/17   1,217
City of Saint Louis Park Minnesota Revenue Bonds 725      5.500    07/01/18   792
State Paul Housing & Redevelopment Authority Revenue Bonds 2,145      5.000    11/15/25   2,429
State Paul Housing & Redevelopment Authority Revenue Bonds 2,250    5.000    11/15/26    2,537
                11,585
Mississippi - 0.3%                
City of Gulfport Mississippi Revenue Bonds 545      5.000    07/01/31   654
Mississippi Development Bank Revenue Bonds(µ) 1,000      5.000    04/01/28   1,198
Mississippi Development Bank Revenue Bonds(µ) 1,000      5.000    03/01/34   1,195
Mississippi Hospital Equipment & Facilities Authority Revenue Bonds 1,555    5.000    10/01/17    1,634
                4,681

 

See accompanying notes which are an integral part of this quarterly report.

240 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Missouri - 1.3%                
Bi-State Development Agency of the Missouri-Illinois Metropolitan District Revenue                
Bonds 810      5.000    10/01/28   881
Bi-State Development Agency of the Missouri-Illinois Metropolitan District Revenue                
Bonds 1,775      5.000    10/01/33   2,111
City of Kansas City Missouri Revenue Bonds 1,185      5.000    09/01/26   1,326
City of Kansas City Missouri Revenue Bonds 500      5.000    09/01/27   559
City of Kansas City Missouri Revenue Bonds 1,000      5.000    09/01/28   1,116
City of Kansas City Missouri Revenue Bonds 1,000      5.000    09/01/29   1,116
City of Saint Louis Missouri Airport Revenue Bonds 1,680      6.125    07/01/24   1,929
County of Boone Missouri Revenue Bonds 2,760      5.000    08/01/30   3,320
County of Boone Missouri Revenue Bonds 1,700      4.000    08/01/33   1,835
Health & Educational Facilities Authority of the State of Missouri Revenue Bonds 1,540      5.000    11/15/31   1,916
Missouri Highway & Transportation Commission Revenue Bonds(ae) 2,500      5.250    05/01/17   2,589
Nixa Public Schools General Obligation Unlimited 500      5.000    03/01/33   566
Poplar Bluff R-I School District Certificate Of Participation(µ) 100      3.000    03/01/17   101
Poplar Bluff R-I School District Certificate Of Participation(µ) 100    3.000    03/01/18    104
                19,469
Nebraska - 0.6%                
Central Plains Energy Project Revenue Bonds 1,565      5.000    09/01/32   1,782
Central Plains Energy Project Revenue Bonds 3,505      5.250    09/01/37   4,016
Nebraska Public Power District Revenue Bonds 2,000      4.000    01/01/21   2,261
Nebraska Public Power District Revenue Bonds 1,000    5.000    01/01/29    1,183
                9,242
Nevada - 0.8%                
City of Reno Nevada General Obligation Limited 1,100      5.000    06/01/18   1,185
City of Reno Nevada General Obligation Limited 1,000      5.000    06/01/22   1,195
Clark County Department of Aviation Revenue Bonds(µ) 2,500      5.000    07/01/22   2,826
County of Clark Nevada Revenue Bonds 2,965      5.000    07/01/29   3,623
State of Nevada General Obligation Limited 2,590    5.000    04/01/21    3,063
                11,892
New Jersey - 5.7%                
Camden County Improvement Authority Revenue Bonds 1,000      5.000    02/15/18   1,061
Camden County Improvement Authority Revenue Bonds 1,000      5.000    02/15/19   1,095
Camden County Improvement Authority Revenue Bonds 2,000      5.000    02/15/28   2,360
Camden County Improvement Authority Revenue Bonds 2,000      5.000    02/15/30   2,329
Camden County Improvement Authority Revenue Bonds 2,000      5.000    02/15/31   2,316
Camden County Improvement Authority Revenue Bonds 300      5.000    02/15/32   346
Casino Reinvestment Development Authority Revenue Bonds 600      5.000    11/01/18   636
Casino Reinvestment Development Authority Revenue Bonds 1,000      4.000    11/01/19   1,051
City of Bayonne New Jersey General Obligation Unlimited(µ) 1,500      5.000    07/01/33   1,817
City of Bayonne New Jersey General Obligation Unlimited(µ) 1,865      5.000    07/01/34   2,250
City of Jersey City New Jersey General Obligation Unlimited 990      5.000    01/15/23   1,193
City of Paterson New Jersey General Obligation Unlimited(µ) 1,180      5.000    01/15/23   1,381
City of Trenton New Jersey General Obligation Unlimited(µ) 1,680      5.000    07/15/23   2,047
New Jersey Economic Development Authority Revenue Bonds 2,500      5.000    09/01/18   2,710
New Jersey Economic Development Authority Revenue Bonds 6,435      5.000    06/15/19   7,021
New Jersey Economic Development Authority Revenue Bonds 2,765      5.000    06/15/20   3,051
New Jersey Economic Development Authority Revenue Bonds 75      5.000    06/15/21   84
New Jersey Economic Development Authority Revenue Bonds 2,000      5.000    06/15/22   2,276
New Jersey Economic Development Authority Revenue Bonds 2,045      5.000    06/15/23   2,324
New Jersey Economic Development Authority Revenue Bonds(µ) 3,700      5.500    09/01/24   4,427
New Jersey Economic Development Authority Revenue Bonds 750      5.000    07/01/29   835
New Jersey Educational Facilities Authority Revenue Bonds(µ) 2,000      5.000    07/01/23   2,431
New Jersey Educational Facilities Authority Revenue Bonds(µ) 500      5.000    07/01/32   603
New Jersey Educational Facilities Authority Revenue Bonds(µ) 925      5.000    07/01/33   1,111
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) 1,000      5.000    09/15/17   1,050
New Jersey Health Care Facilities Financing Authority Revenue Bonds 490      4.250    07/01/18   520

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 241

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
New Jersey Health Care Facilities Financing Authority Revenue Bonds 1,355      3.600    07/01/19   1,410
New Jersey Health Care Facilities Financing Authority Revenue Bonds 900      3.850    07/01/20   950
New Jersey Health Care Facilities Financing Authority Revenue Bonds(µ) 1,000      5.000    07/01/27   1,236
New Jersey Health Care Facilities Financing Authority Revenue Bonds 1,000      5.000    07/01/28   1,260
New Jersey Health Care Facilities Financing Authority Revenue Bonds 1,000      5.000    07/01/31   1,241
New Jersey State Turnpike Authority Revenue Bonds 5,540      5.000    01/01/22   6,633
New Jersey State Turnpike Authority Revenue Bonds 3,485      5.000    01/01/23   4,259
New Jersey State Turnpike Authority Revenue Bonds 3,080      5.000    01/01/24   3,764
New Jersey State Turnpike Authority Revenue Bonds 2,500      5.000    01/01/27   3,022
New Jersey Transportation Trust Fund Authority Revenue Bonds 1,000      5.000    12/15/18   1,075
New Jersey Transportation Trust Fund Authority Revenue Bonds(µ) 830      5.500    12/15/18   910
New Jersey Transportation Trust Fund Authority Revenue Bonds 1,120      5.250    06/15/30   1,258
Newark Housing Authority Revenue Bonds(µ) 350      5.000    12/01/20   401
Passaic County Improvement Authority Revenue Bonds 250      5.000    08/01/19   279
State of New Jersey General Obligation Unlimited(µ) 2,080      5.500    07/15/18   2,264
Tobacco Settlement Financing Corp. Revenue Bonds 55      4.500    06/01/23   56
Tobacco Settlement Financing Corp. Revenue Bonds 1,245      5.000    06/01/29   1,258
Tobacco Settlement Financing Corp. Revenue Bonds 3,250    4.750    06/01/34    3,162
                82,763
New Mexico - 0.3%                
City of Albuquerque New Mexico General Obligation Unlimited 2,320      5.000    07/01/17   2,415
County of Taos New Mexico Revenue Bonds(µ) 750      3.000    04/01/17   758
New Mexico Hospital Equipment Loan Council Revenue Bonds 555    5.000    08/01/25    708
                3,881
New York - 8.3%                
Buffalo & Erie County Industrial Land Development Corp. Revenue Bonds 385      5.000    07/01/20   440
Buffalo & Erie County Industrial Land Development Corp. Revenue Bonds 1,350      5.750    10/01/26   1,631
Build NYC Resource Corp. Revenue Bonds(µ) 930      5.000    12/15/18   1,019
Build NYC Resource Corp. Revenue Bonds 1,445      5.000    08/01/19   1,608
City of New York New York General Obligation Unlimited 2,170      5.000    08/01/16   2,170
City of New York New York General Obligation Unlimited 1,500      5.000    08/01/19   1,689
City of New York New York General Obligation Unlimited 2,105      5.000    08/01/20   2,443
City of New York New York General Obligation Unlimited 2,550      5.000    08/01/21   3,040
City of New York New York General Obligation Unlimited 2,445      5.000    08/01/22   2,979
City of New York New York General Obligation Unlimited 6,420      5.000    08/01/23   7,979
City of Yonkers New York General Obligation Limited(µ) 615      5.000    03/15/25   709
County of Nassau New York General Obligation Limited(µ) 1,000      5.000    04/01/39   1,215
Metropolitan Transportation Authority Revenue Bonds 1,000      5.000    11/15/17   1,057
Metropolitan Transportation Authority Revenue Bonds(ae) 1,065      6.500    11/15/18   1,207
Metropolitan Transportation Authority Revenue Bonds 1,410      5.000    11/15/24   1,729
Metropolitan Transportation Authority Revenue Bonds 8,320      5.000    11/15/25   10,166
Metropolitan Transportation Authority Revenue Bonds 2,075      5.000    11/15/27   2,524
Metropolitan Transportation Authority Revenue Bonds 4,015      5.000    11/15/28   4,999
Metropolitan Transportation Authority Revenue Bonds 365      6.500    11/15/28   412
Metropolitan Transportation Authority Revenue Bonds 1,000      5.000    11/15/35   1,219
New York City Health & Hospital Corp. Revenue Bonds 1,775      5.000    02/15/17   1,818
New York City Industrial Development Agency Revenue Bonds(µ) 1,535      5.000    01/01/31   1,559
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds 1,000      5.000    11/01/18   1,098
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds 890      5.000    11/01/20   1,045
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds 2,175      5.000    05/01/21   2,587
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds 2,180      5.000    11/01/21   2,627
New York City Trust for Cultural Resources Revenue Bonds 940      5.000    07/01/21   1,104
New York State Dormitory Authority Revenue Bonds 1,000      5.000    12/01/16   1,013
New York State Dormitory Authority Revenue Bonds 1,755      5.000    07/01/17   1,827
New York State Dormitory Authority Revenue Bonds(ae) 5      5.250    02/15/19   6
New York State Dormitory Authority Revenue Bonds 1,000      5.000    10/01/19   1,137
New York State Dormitory Authority Revenue Bonds 995      5.250    02/15/21   1,110
New York State Dormitory Authority Revenue Bonds 180      5.000    07/01/21   215

 

See accompanying notes which are an integral part of this quarterly report.

242 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
New York State Dormitory Authority Revenue Bonds 2,400      5.000    05/01/22   2,818
New York State Dormitory Authority Revenue Bonds 725      5.000    05/15/23   879
New York State Dormitory Authority Revenue Bonds 6,700      5.000    12/15/23   8,265
New York State Dormitory Authority Revenue Bonds 700      5.000    07/01/24   836
New York State Dormitory Authority Revenue Bonds 6,790      5.000    07/01/26   8,295
New York State Dormitory Authority Revenue Bonds 1,710      5.000    12/15/28   2,090
New York State Dormitory Authority Revenue Bonds 2,500      5.250    07/01/29   2,816
New York State Energy Research & Development Authority Revenue Bonds(µ)(Ê) 3,190      0.433    03/01/27   3,063
New York State Environmental Facilities Corp. Revenue Bonds 770      5.000    06/15/22   834
New York State Environmental Facilities Corp. Revenue Bonds 1,640      5.000    09/15/23   1,723
New York State Thruway Authority Revenue Bonds 12,485      5.000    05/01/19   13,902
New York State Thruway Authority Revenue Bonds 2,700      5.000    03/15/27   3,218
Triborough Bridge & Tunnel Authority Revenue Bonds 950      5.000    11/15/17   1,003
Triborough Bridge & Tunnel Authority Revenue Bonds(µ) 1,000      5.500    11/15/20   1,195
Troy Capital Resource Corp. Revenue Bonds 1,000      5.000    09/01/20   1,153
Westchester County Local Development Corp. Revenue Bonds 1,350    5.000    05/01/34    1,548
                121,019
North Carolina - 0.6%                
North Carolina Capital Facilities Finance Agency Revenue Bonds 750      5.000    04/01/19   829
North Carolina Medical Care Commission Revenue Bonds 400      3.000    06/01/17   408
North Carolina Medical Care Commission Revenue Bonds 125      4.000    11/01/23   143
North Carolina Medical Care Commission Revenue Bonds 700      5.000    10/01/30   852
North Carolina Medical Care Commission Revenue Bonds 1,000      5.000    11/01/31   1,234
State of North Carolina General Obligation Unlimited 2,500      5.000    05/01/20   2,898
State of North Carolina Revenue Bonds 1,000      5.000    05/01/19   1,117
University of North Carolina at Chapel Hill Revenue Bonds 1,205    5.000    12/01/31    1,277
                8,758
North Dakota - 0.2%                
City of Bowman North Dakota Revenue Notes 1,000      2.500    02/15/17   1,000
City of Williston North Dakota Revenue Bonds(µ) 1,425      4.000    11/01/20   1,455
County of Burleigh North Dakota Revenue Bonds 460      5.000    07/01/29   547
County of Burleigh North Dakota Revenue Bonds 500    5.000    07/01/31    595
                3,597
Ohio - 4.3%                
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 5,700      5.125    06/01/24   5,608
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 475      5.375    06/01/24   469
Buckeye Tobacco Settlement Financing Authority Revenue Bonds 2,650      5.875    06/01/30   2,641
City of Akron Ohio Revenue Bonds 1,000      5.000    12/01/24   1,208
City of Cincinnati Ohio General Obligation Unlimited 1,815      5.000    12/01/30   2,168
City of Cleveland Ohio Airport System Revenue Bonds(µ) 3,000      5.000    01/01/30   3,486
City of Cleveland Ohio Revenue Bonds 1,500      5.000    10/01/37   1,791
Clermont County Port Authority Revenue Bonds(µ) 200      5.000    12/01/23   246
Cleveland Municipal School District General Obligation Unlimited 1,100      5.000    12/01/27   1,330
County of Cuyahoga Ohio Certificate Of Participation 14,065      5.000    12/01/27   17,188
County of Cuyahoga Ohio Certificate Of Participation 1,990      5.000    12/01/28   2,419
County of Hamilton Ohio Revenue Bonds 1,890      5.250    06/01/32   2,180
County of Montgomery Ohio Revenue Bonds 1,100      5.750    11/15/22   1,299
Lakewood City School District General Obligation Unlimited 260      5.000    11/01/29   319
Lakewood City School District General Obligation Unlimited 875      5.000    11/01/30   1,072
Middletown City School District General Obligation Unlimited 1,435      5.250    12/01/34   1,778
North Olmsted City School District General Obligation Unlimited 420      1.750    12/01/19   429
Ohio State Water Development Authority Revenue Bonds 6,085      5.000    06/01/21   7,258
State of Ohio Revenue Bonds 3,500      5.000    12/15/22   4,245
State of Ohio Revenue Bonds 2,815      5.000    12/15/23   3,410
Toledo-Lucas County Port Authority Revenue Bonds 1,965    5.000    07/01/29    2,244
                62,788
Oklahoma - 0.3%                
Cleveland County Educational Facilities Authority Revenue Bonds 500      5.000    06/01/23   602

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 243

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Oklahoma County Finance Authority Revenue Bonds 1,000      5.000    09/01/21   1,185
Oklahoma Development Finance Authority Revenue Bonds 2,000    5.000    08/15/28    2,484
                4,271
Oregon - 0.4%                
City of Portland Oregon Sewer System Revenue Bonds 2,000      5.000    06/15/18   2,164
Hospital Facilities Authority of Multnomah County Oregon Revenue Bonds 535      5.000    10/01/19   567
Morrow County School District No. 1 General Obligation Unlimited(µ) 1,955    5.500    06/15/21    2,378
                5,109
Pennsylvania - 3.4%                
Allegheny County Hospital Development Authority Revenue Bonds 2,000      5.000    09/01/16   2,007
Berks County Municipal Authority Revenue Bonds 1,960      5.250    11/01/24   2,230
Bethlehem Authority Revenue Bonds(µ) 1,000      4.000    11/15/16   1,009
Bethlehem Authority Revenue Bonds(µ) 1,000      5.000    11/15/17   1,054
City of Philadelphia Pennsylvania General Obligation Unlimited(µ) 1,000      5.000    08/01/24   1,114
City of Philadelphia Pennsylvania General Obligation Unlimited 3,210      5.250    07/15/27   3,784
Commonwealth of Pennsylvania General Obligation Unlimited(µ) 1,300      5.375    07/01/17   1,357
Dallas Area Municipal Authority Revenue Bonds 430      4.000    05/01/18   444
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) 665      5.000    11/01/25   802
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) 970      5.000    11/01/26   1,167
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) 1,120      5.000    11/01/27   1,341
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) 1,140      5.000    11/01/28   1,361
Delaware County Vocational & Technical School Authority Revenue Bonds(µ) 1,500      5.250    11/01/33   1,814
East Allegheny School District General Obligation Unlimited(µ) 350      3.000    04/01/19   364
General Authority of Southcentral Pennsylvania Revenue Bonds 360      5.000    12/01/28   433
Montgomery County Industrial Development Authority Revenue Bonds 1,000      5.000    11/15/17   1,013
North Penn Water Authority Revenue Bonds 1,190      5.000    11/01/30   1,403
Northampton County General Purpose Authority Revenue Bonds 285      5.000    10/01/30   340
Northampton County General Purpose Authority Revenue Bonds 250      5.000    10/01/31   297
Pennsylvania Economic Development Financing Authority Revenue Bonds 2,270      5.000    01/01/22   2,365
Pennsylvania Economic Development Financing Authority Revenue Bonds 1,460      5.000    07/01/22   1,464
Pennsylvania Economic Development Financing Authority Revenue Bonds(Ê) 1,000      3.750    12/01/40   1,004
Pennsylvania Higher Educational Facilities Authority Revenue Bonds 1,940      5.250    05/01/24   2,268
Pennsylvania State High Educational Fund Revenue Bonds (Ê) 700      0.400    07/01/31   823
Philadelphia Authority for Industrial Development Revenue Bonds 1,000      5.875    06/15/22   1,093
Philadelphia Authority for Industrial Development Revenue Bonds 2,000      8.000    01/01/33   2,215
State Public School Building Authority Revenue Bonds 2,000      5.000    04/01/20   2,205
State Public School Building Authority Revenue Bonds 3,030      5.000    04/01/25   3,352
State Public School Building Authority Revenue Bonds(µ) 1,000      5.000    06/15/28   1,191
State Public School Building Authority Revenue Bonds(µ) 1,000      5.000    06/15/29   1,191
State Public School Building Authority Revenue Bonds 3,000      5.000    04/01/32   3,231
Township of Bensalem Pennsylvania General Obligation Unlimited 1,380      5.250    06/01/29   1,690
University of Pittsburgh-of the Commonwealth System of Higher Education Revenue                
Bonds 1,000      5.500    09/15/21   1,125
West Mifflin Sanitary Sewer Municipal Authority Revenue Bonds(µ) 250      3.000    08/01/17   256
West Mifflin Sanitary Sewer Municipal Authority Revenue Bonds(µ) 225      4.000    08/01/18   238
Western Wayne School District General Obligation Unlimited(µ) 565    5.000    04/01/21    656
                49,701
Puerto Rico - 2.3%                
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 875      5.000    07/01/17   892
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 285      5.500    07/01/18   301
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 640      5.500    07/01/19   684
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 1,000      5.250    07/01/21   1,011
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 1,000      5.250    07/01/27   1,001
Commonwealth of Puerto Rico General Obligation Unlimited(µ) 3,340      5.000    07/01/35   3,448
Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue Bonds(µ) 3,050      5.000    07/01/28   3,165
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 1,400      5.000    07/01/18   1,404
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 100      5.000    07/01/20   100
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 305      5.000    07/01/31   306

 

See accompanying notes which are an integral part of this quarterly report.

244 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Puerto Rico Convention Center District Authority Revenue Bonds(µ) 500      4.500    07/01/36   498
Puerto Rico Electric Power Authority Revenue Bonds(µ) 1,000      5.000    07/01/19   1,010
Puerto Rico Electric Power Authority Revenue Bonds(µ) 1,815      5.000    07/01/21   1,828
Puerto Rico Electric Power Authority Revenue Bonds(µ) 215      4.000    07/01/23   213
Puerto Rico Electric Power Authority Revenue Bonds(µ) 1,940      5.000    07/01/26   1,963
Puerto Rico Electric Power Authority Revenue Bonds(µ) 205      4.375    07/01/30   195
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) 300      4.125    07/01/18   300
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) 715      5.500    07/01/26   752
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) 950      5.000    07/01/27   954
Puerto Rico Highways & Transportation Authority Revenue Bonds(µ) 700      5.500    07/01/28   742
Puerto Rico Housing Finance Authority Revenue Bonds 615      5.500    12/01/16   624
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 1,185      5.500    07/01/17   1,200
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 1,735      5.500    07/01/23   1,853
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 680      5.500    07/01/24   723
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 590      5.500    07/01/25   624
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 1,500      5.500    07/01/26   1,582
Puerto Rico Infrastructure Financing Authority Revenue Bonds(µ) 60      5.500    07/01/27   63
Puerto Rico Municipal Finance Agency General Obligation Unlimited(µ) 3,090      5.000    08/01/27   3,151
Puerto Rico Municipal Finance Agency Revenue Bonds(µ) 115      5.250    08/01/22   119
Puerto Rico Public Buildings Authority Revenue Bonds(µ) 2,480    5.500    07/01/17    2,512
                33,218
Rhode Island - 0.2%                
Providence Public Buildings Authority Revenue Bonds(µ) 500      5.875    06/15/26   585
Rhode Island Health & Educational Building Corp. Revenue Bonds 1,000      5.000    05/15/28   1,211
Rhode Island Health & Educational Building Corp. Revenue Bonds 1,250    5.000    05/15/29    1,504
                3,300
South Carolina - 1.0%                
County of Greenwood South Carolina Revenue Bonds(µ)(Ê) 150      0.396    10/01/34   139
Piedmont Municipal Power Agency Revenue Bonds 1,000      5.000    01/01/20   1,130
South Carolina State Public Service Authority Revenue Bonds 1,000      5.000    12/01/16   1,015
South Carolina State Public Service Authority Revenue Bonds 3,310      5.000    12/01/36   3,888
Spartanburg Regional Health Services District Revenue Bonds 5,560      5.000    04/15/32   6,332
Sumter Two School Facilities, Inc. Revenue Bonds(µ) 250      4.000    12/01/18   269
Sumter Two School Facilities, Inc. Revenue Bonds(µ) 1,360    5.000    12/01/26    1,687
                14,460
South Dakota - 0.1%                
South Dakota Health & Educational Facilities Authority Revenue Bonds 1,000    5.000    11/01/35    1,185
 
Tennessee - 0.6%                
Chattanooga Health Educational & Housing Facility Board Revenue Bonds 600      5.000    10/01/26   741
Chattanooga Industrial Development Board Revenue Bonds(µ) 4,000      5.000    10/01/30   4,188
Chattanooga-Hamilton County Hospital Authority Revenue Bonds 630      5.000    10/01/23   765
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd                
Revenue Bonds 340      5.000    10/01/28   421
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd                
Revenue Bonds 2,200    5.000    07/01/35    2,682
                8,797
Texas - 9.5%                
Arlington Higher Education Finance Corp. Revenue Bonds 1,000      5.000    08/15/26   1,224
Austin Community College District Public Facility Corp. Revenue Bonds 1,000      5.000    08/01/23   1,228
Austin Community College District Public Facility Corp. Revenue Bonds 1,000      5.000    08/01/24   1,247
Central Texas Regional Mobility Authority Revenue Bonds 1,200      5.000    01/01/35   1,431
Central Texas Turnpike System Revenue Bonds 500      5.000    08/15/23   612
City of Beaumont Texas Waterworks & Sewer System Revenue Bonds(µ) 425      4.000    09/01/18   452
City of Corpus Christi Texas Utility System Revenue Bonds 1,660      5.000    07/15/22   1,995
City of Donna Texas Revenue Bonds(µ) 1,090      5.000    02/15/31   1,293
City of Donna Texas Revenue Bonds(µ) 1,265      5.000    02/15/34   1,490
City of El Paso Texas Water & Sewer Revenue Bonds 2,890      5.000    03/01/25   3,633
City of Fort Worth Texas Water & Sewer System Revenue Bonds 1,340      5.000    02/15/17   1,372

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 245

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)              
    Principal         Fair
    Amount ($)   Rate   Date of Value
    or Shares   %   Maturity $
City of Houston Texas Airport System Revenue Bonds 1,500      5.000    07/01/17 1,559
City of Houston Texas Airport System Revenue Bonds 560      5.000    07/01/25 667
City of Houston Texas Airport System Revenue Bonds 900      5.000    07/01/29 1,064
City of Houston Texas Revenue Bonds 1,890      5.000    09/01/20 2,179
City of Lubbock Texas General Obligation Limited 5,000      5.000    02/15/19 5,538
City of San Antonio Texas Water System Revenue Bonds 2,250      5.000    05/15/24 2,588
City Public Service Board of San Antonio Texas Revenue Bonds 1,000      5.000    02/01/18 1,066
Clifton Higher Education Finance Corp. Revenue Bonds 300      2.350    08/15/16 300
Clifton Higher Education Finance Corp. Revenue Bonds 425      3.000    08/15/17 435
Clifton Higher Education Finance Corp. Revenue Bonds 400      4.000    08/15/18 425
Conroe Independent School District General Obligation Unlimited 1,085      5.000    02/15/25 1,238
County of Fort Bend Texas General Obligation Limited 3,740      5.000    03/01/23 4,594
Dallas/Fort Worth International Airport Revenue Bonds 280      5.000    11/01/22 283
Dallas/Fort Worth International Airport Revenue Bonds 200      5.000    11/01/23 202
Dallas/Fort Worth International Airport Revenue Bonds 250      5.000    11/01/24 253
Dallas/Fort Worth International Airport Revenue Bonds 3,395      5.000    11/01/27 4,076
Dallas/Fort Worth International Airport Revenue Bonds 1,000      5.250    11/01/28 1,242
Dallas/Fort Worth International Airport Revenue Bonds 1,340      5.000    11/01/29 1,554
Dallas/Fort Worth International Airport Revenue Bonds 2,000      5.250    11/01/29 2,470
Dallas/Fort Worth International Airport Revenue Bonds 1,825      5.000    11/01/30 2,113
Dallas/Fort Worth International Airport Revenue Bonds 1,500      5.250    11/01/30 1,844
Decatur Hospital Authority Revenue Bonds 1,250      5.250    09/01/29 1,419
Goose Creek Consolidated Independent School District General Obligation Unlimited 915      5.000    02/15/24 1,081
Grand Prairie Independent School District General Obligation Unlimited 750      5.000    02/15/19 768
Harris County Cultural Education Facilities Finance Corp. Revenue Bonds 1,385      6.375    01/01/33 1,627
Harris County-Houston Sports Authority Revenue Bonds 1,000      5.000    11/15/26 1,206
Harris County-Houston Sports Authority Revenue Bonds 750      5.000    11/15/27 899
Harris County-Houston Sports Authority Revenue Bonds 2,265      5.000    11/15/29 2,688
Harris County-Houston Sports Authority Revenue Bonds 1,215      5.000    11/15/31 1,434
Houston Higher Education Finance Corp. Revenue Bonds(ae) 650      6.500    05/15/21 818
Houston Higher Education Finance Corp. Revenue Bonds 1,600      5.000    08/15/28 1,976
Karnes County Hospital District Revenue Bonds 840      4.000    02/01/19 874
Karnes County Hospital District Revenue Bonds 2,020      5.000    02/01/29 2,302
Kerrville Health Facilities Development Corp. Revenue Bonds 1,100      4.000    08/15/19 1,183
Lower Colorado River Authority Revenue Bonds 3,585      5.500    05/15/31 4,410
New Hope Cultural Education Facilities Corp. Revenue Bonds 565      5.000    04/01/21 642
New Hope Cultural Education Facilities Corp. Revenue Bonds 650      5.000    04/01/22 753
New Hope Cultural Education Facilities Corp. Revenue Bonds 180      4.625    04/01/23 208
New Hope Cultural Education Facilities Corp. Revenue Bonds 500      5.000    04/01/29 590
New Hope Cultural Education Facilities Corp. Revenue Bonds 1,160      5.000    04/01/35 1,425
New Hope Cultural Education Facilities Corp. Revenue Bonds 1,545      5.000    04/01/36 1,891
North East Texas Regional Mobility Authority Revenue Bonds 1,935      5.000    01/01/31 2,336
North Texas Tollway Authority Revenue Bonds(ae) 840      6.000    01/01/18 904
North Texas Tollway Authority Revenue Bonds 120      6.000    01/01/24 129
North Texas Tollway Authority Revenue Bonds 3,840      5.000    01/01/29 4,741
Reagan Hospital District of Reagan County General Obligation Limited 860      2.500    02/01/19 850
Reagan Hospital District of Reagan County General Obligation Limited 910      3.250    02/01/21 906
Reagan Hospital District of Reagan County General Obligation Limited 485      3.750    02/01/23 489
Reagan Hospital District of Reagan County General Obligation Limited 500      5.000    02/01/29 535
Reagan Hospital District of Reagan County General Obligation Limited 3,000      5.000    02/01/34 3,163
State of Texas General Obligation Unlimited 2,910      5.000    04/01/22 3,533
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds 1,500      5.000    11/15/16 1,519
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds 2,500      2.500    12/01/18 2,526
Tarrant Regional Water District Revenue Bonds 6,000      5.000    03/01/21 7,080
Tarrant Regional Water District Revenue Bonds 1,150      5.000    03/01/22 1,389
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds 3,775      6.250    12/15/26 4,791
Texas Municipal Gas Acquisition & Supply Corp. III Revenue Bonds 900      5.000    12/15/24 1,072

 

See accompanying notes which are an integral part of this quarterly report.

246 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                
    Principal           Fair
    Amount ($)   Rate   Date of   Value
    or Shares   %   Maturity   $
Texas Municipal Gas Acquisition & Supply Corp. III Revenue Bonds 3,515      5.000    12/15/27   4,101
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds 1,445      7.500    12/31/31   1,742
Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds 1,250      7.500    06/30/33   1,532
Texas Public Finance Authority Revenue Bonds 10,985      4.000    07/01/17   11,177
Texas State Public Finance Authority Charter School Finance Corp. Revenue Bonds 400      4.000    08/15/16   400
Texas State Public Finance Authority Charter School Finance Corp. Revenue Bonds 445      4.000    08/15/17   461
Texas State Public Finance Authority Charter School Finance Corp. Revenue Bonds 300      4.000    08/15/18   320
Viridian Municipal Management District General Obligation Unlimited(µ) 1,000      6.000    12/01/27   1,325
Viridian Municipal Management District General Obligation Unlimited(µ) 500      6.000    12/01/32   662
Viridian Municipal Management District General Obligation Unlimited(µ) 995    6.000    12/01/33    1,318
                138,862
Utah - 0.3%                
County of Salt Lake Utah Revenue Bonds(Ê) 2,000      5.000    12/01/33   2,115
Utah State Charter School Finance Authority Revenue Bonds 465      5.250    10/15/28   562
Utah State Charter School Finance Authority Revenue Bonds 1,215    5.000    10/15/33    1,406
                4,083
Vermont - 0.0%                
City of Burlington Vermont Airport Revenue Bonds(µ) 540    5.000    07/01/24    632
 
Virgin Islands - 1.3%                
Virgin Islands Public Finance Authority Revenue Bonds 4,455      5.000    10/01/18   4,561
Virgin Islands Public Finance Authority Revenue Bonds 1,000      4.000    10/01/22   971
Virgin Islands Public Finance Authority Revenue Bonds(µ) 7,400      5.000    10/01/29   8,375
Virgin Islands Public Finance Authority Revenue Bonds 670      5.250    10/01/29   667
Virgin Islands Public Finance Authority Revenue Bonds 2,650      5.000    10/01/32   2,670
Virgin Islands Public Finance Authority Revenue Bonds 2,110    6.750    10/01/37    2,228
                19,472
Virginia - 1.0%                
Chesterfield County Economic Development Authority Revenue Bonds 650      5.000    05/01/23   718
Commonwealth of Virginia General Obligation Unlimited 1,000      5.000    06/01/23   1,080
County of Fairfax Virginia General Obligation Unlimited 1,000      5.000    04/01/18   1,074
Henrico County Economic Development Authority Revenue Bonds 1,490      5.000    11/01/30   1,744
Virginia College Building Authority Revenue Bonds 530      5.000    07/01/19   572
Virginia College Building Authority Revenue Bonds 585      5.000    07/01/20   643
Virginia College Building Authority Revenue Bonds 710      5.250    07/01/30   821
Virginia Commonwealth Transportation Board Revenue Bonds 1,950      5.000    03/15/18   2,090
Virginia Public School Authority Revenue Bonds 1,000      5.000    08/01/17   1,045
Virginia Resources Authority Revenue Bonds 3,795    5.000    11/01/21    4,579
                14,366
Washington - 4.2%                
City of Seattle Washington Municipal Light & Power Revenue Bonds 5,760      5.000    05/01/20   6,653
City of Seattle Washington Municipal Light & Power Revenue Bonds 5,545      5.000    05/01/21   6,593
City of Seattle Washington Municipal Light & Power Revenue Bonds 2,820      5.000    05/01/22   3,432
County of King Washington Sewer Revenue Bonds 3,085      5.000    01/01/28   3,761
Energy Northwest Revenue Bonds 2,000      5.000    07/01/19   2,249
Greater Wenatchee Regional Events Center Public Facilities Dist Revenue Bonds 1,060      3.750    09/01/19   1,091
Greater Wenatchee Regional Events Center Public Facilities Dist Revenue Bonds 1,000      4.500    09/01/22   1,068
Mason County School District No. 309 Shelton General Obligation Unlimited(µ) 1,115      5.000    12/01/18   1,225
Port of Seattle Washington Revenue Bonds 1,000      5.000    06/01/22   1,150
Port of Seattle Washington Revenue Bonds 1,285      5.000    03/01/23   1,583
State of Washington General Obligation Unlimited 1,000      5.000    07/01/17   1,041
State of Washington General Obligation Unlimited 12,825      5.000    08/01/20   14,911
State of Washington General Obligation Unlimited 3,825      5.000    02/01/25   4,893
State of Washington Revenue Bonds 8,000      5.000    09/01/20   9,279
Washington Health Care Facilities Authority Revenue Bonds 270      5.000    03/01/18   288
Washington Health Care Facilities Authority Revenue Bonds 700      5.000    07/01/30   851
Washington State Housing Finance Commission Revenue Bonds 1,400    4.375    01/01/21    1,429
                61,497

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 247

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)                  
    Principal           Fair  
    Amount ($)   Rate   Date of   Value  
    or Shares   %   Maturity   $  
West Virginia - 0.2%                  
County of Mason West Virginia Revenue Bonds(Ê) 1,000      1.625    10/01/22   1,012  
West Virginia Hospital Finance Authority Revenue Bonds(µ)(Ê) 450      0.595    02/15/34   399  
West Virginia University Revenue Bonds 1,350    5.000    10/01/21    1,601  
                3,012  
Wisconsin - 1.4%                  
City of Marshfield Wisconsin Electric System Revenue Bonds 4,000      5.500    12/01/30   4,789  
Public Finance Authority Revenue Bonds 1,250      5.125    11/15/29   1,362  
State of Wisconsin General Obligation Unlimited 4,250      5.000    11/01/20   4,988  
Wisconsin Department of Transportation Revenue Bonds(µ) 1,500      5.000    07/01/19   1,688  
Wisconsin Department of Transportation Revenue Bonds 5,950    5.000    07/01/22    7,270  
                20,097  
Wyoming - 0.2%                  
County of Laramie Wyoming Revenue Bonds 1,000      4.000    05/01/22   1,105  
County of Sweetwater Wyoming Revenue Bonds 1,000      5.000    12/15/16   1,016  
County of Sweetwater Wyoming Revenue Bonds 1,000    5.000    12/15/18    1,055  
                3,176  
Total Municipal Bonds (cost $1,320,545)               1,397,494  
 
Short-Term Investments - 4.3%                  
Russell U.S. Cash Management Fund 62,614,847 (8)         62,615  
Total Short-Term Investments (cost $62,615)               62,615  
 
Total Investments 100.4% (identified cost $1,383,160)               1,460,109  
Other Assets and Liabilities, Net - (0.4%)               (5,124 )
Net Assets - 100.0%               1,454,985  

 

See accompanying notes which are an integral part of this quarterly report.

248 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                    
Amounts in thousands                    
 
        Fair Value            
              Practical    
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a) Total
Municipal Bonds                    
Alabama $ — $ 19,644 $ — $ — $ 19,644
Alaska   —   1,748   —   —   1,748
Arizona   —   34,650   —   —   34,650
Arkansas   —   2,868   —   —   2,868
California   —   124,015   —   —   124,015
Colorado   —   31,758   —   —   31,758
Connecticut   —   29,073   —   —   29,073
Delaware   —   1,041   —   —   1,041
District of Columbia   —   4,015   —   —   4,015
Florida   —   130,302   —   —   130,302
Georgia   —   22,429   —   —   22,429
Guam   —   12,818   —   —   12,818
Idaho   —   10,157   —   —   10,157
Illinois   —   125,497   —   —   125,497
Indiana   —   2,214   —   —   2,214
Iowa   —   12,613   —   —   12,613
Kansas   —   4,753   —   —   4,753
Kentucky   —   8,389   —   —   8,389
Louisiana   —   27,542   —   —   27,542
Maryland   —   3,835   —   —   3,835
Massachusetts   —   11,524   —   —   11,524
Michigan   —   51,696   —   —   51,696
Minnesota   —   11,585   —   —   11,585
Mississippi   —   4,681   —   —   4,681
Missouri   —   19,469   —   —   19,469
Nebraska   —   9,242   —   —   9,242
Nevada   —   11,892   —   —   11,892
New Jersey   —   82,763   —   —   82,763
New Mexico   —   3,881   —   —   3,881
New York   —   121,019   —   —   121,019
North Carolina   —   8,758   —   —   8,758
North Dakota   —   3,597   —   —   3,597
Ohio   —   62,788   —   —   62,788
Oklahoma   —   4,271   —   —   4,271
Oregon   —   5,109   —   —   5,109
Pennsylvania   —   49,701   —   —   49,701
Puerto Rico   —   33,218   —   —   33,218
Rhode Island   —   3,300   —   —   3,300
South Carolina   —   14,460   —   —   14,460
South Dakota   —   1,185   —   —   1,185
Tennessee   —   8,797   —   —   8,797
Texas   —   138,862   —   —   138,862
Utah   —   4,083   —   —   4,083
Vermont   —   632   —   —   632
Virgin Islands   —   19,472   —   —   19,472
Virginia   —   14,366   —   —   14,366
Washington   —   61,497   —   —   61,497

 

See accompanying notes which are an integral part of this quarterly report.

Russell Tax Exempt Bond Fund 249

 

Russell Investment Company
Russell Tax Exempt Bond Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings
Amounts in thousands

          Fair Value              
                Practical      
Portfolio Summary Level 1   Level 2 Level 3 Expedient (a)   Total
West Virginia   —     3,012   —   —     3,012
Wisconsin   —     20,097   —   —     20,097
Wyoming   —     3,176   —   —     3,176
Short-Term Investments —   — — 62,615   62,615
Total Investments $ — $ 1,397,494 $ — $ 62,615 $ 1,460,109

 

(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not
been classified in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts
presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the
Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

250 Russell Tax Exempt Bond Fund

 

Russell Investment Company
Russell Commodity Strategies Fund

Consolidated Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)  
    Principal   Fair Principal Fair
    Amount ($)   Value Amount ($) Value
    or Shares   $ or Shares $
Short-Term Investments - 94.1%            
Russell U.S. Cash Management Fund(a)   612,292,431 (8)   612,292 Total Investments 94.1%  
United States Treasury Bills         (identified cost $644,285) 644,285
0.290% due 08/18/16 (§)(ç)(~) 19,500   19,497    
0.200% due 09/15/16 (§)(~) 1,000   1,000 Other Assets and Liabilities,  
0.249% due 09/15/16 (§)(~) 7,700   7,698 Net - 5.9% 40,047
0.299% due 10/13/16 (§)(~) 3,800   3,798 Net Assets - 100.0% 684,332
Total Short-Term Investments            
(cost $644,285)       644,285    

 

(a) Russell U.S. Cash Management Fund is an investment fund which is valued daily and allows redemptions on a daily basis. The fund exists
primarily for the investment and reinvestment of cash balances held by Russell Investment Company and Russell Investment Funds. Russell
Commodity Strategies Fund’s ownership in the Russell U.S. Cash Management Fund includes proportional ownership in Federal Home Loan
Discount Notes with approximate aggregate values of $88,722,797 which represents 12.97% of Russell U.S. Cash Management Fund’s net assets.     

See accompanying notes which are an integral part of this quarterly report.

Russell Commodity Strategies Fund 251

 

Russell Investment Company
Russell Commodity Strategies Fund

Consolidated Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)            
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
WTI Crude Oil Futures 66 USD 2,894 11/16 362  
WTI Crude Oil Futures 66 USD 3,070 05/17 (376 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts         (14 )
 
Total Return Swap Contracts (*)              
Amounts in thousands              
      Notional Termination Fair Value  
Underlying Reference Entity Counterparty Amount Date $  
Bloomberg Brent Crude Subindex Merrill Lynch   USD 1,466 10/04/16 —  
Bloomberg Brent Crude Subindex UBS   USD 4,956 09/19/16 —  
Bloomberg Brent Crude Subindex UBS   USD 1,135 09/19/16 —  
Bloomberg Brent Crude Subindex UBS   USD 1,180 09/19/16 —  
Bloomberg Coffee Subindex Merrill Lynch   USD 584 10/04/16 —  
Bloomberg Coffee Subindex UBS   USD 2,168 08/16/16 —  
Bloomberg Commodity Index Merrill Lynch   USD 21,625 10/04/16 —  
Bloomberg Commodity Index UBS   USD 84,735 09/08/16 —  
Bloomberg Commodity Index 2 Month Forward Total              
Return BNP Paribas   USD 9,476 08/23/16 (68 )
Bloomberg Commodity Index 2 Month Forward Total              
Return Morgan Stanley   USD 10,673 08/23/16 (77 )
Bloomberg Commodity Index 2 Month Forward Total              
Return Societe Generale   USD 6,516 08/23/16 (47 )
Bloomberg Commodity Index 2 Month Forward Total              
Return UBS   USD 13,139 08/23/16 (94 )
Bloomberg Commodity Index Total Return Societe Generale   USD 8,141 08/23/16 (64 )
Bloomberg Commodity Index Total Return UBS   USD 15,255 08/23/16 (119 )
Bloomberg Copper Index UBS   USD 3,332 09/19/16 —  
Bloomberg Cotton Subindex Merrill Lynch   USD 2,278 10/04/16 —  
Bloomberg Gold Subindex Merrill Lynch   USD 2,035 10/04/16 —  
Bloomberg Gold Subindex Merrill Lynch   USD 13,471 01/13/17 —  
Bloomberg Heating Oil Subindex Merrill Lynch   USD 3,857 01/13/17 —  
Bloomberg Heating Oil Subindex UBS   USD 422 09/19/16 —  
Bloomberg Kansas Wheat Subindex Merrill Lynch   USD 1,022 10/04/16 —  
Bloomberg Lean Hogs Subindex Merrill Lynch   USD 1,309 10/04/16 —  
Bloomberg Lean Hogs Subindex UBS   USD 1,290 09/12/16 —  
Bloomberg Live Cattle Subindex Merrill Lynch   USD 2,833 10/04/16 —  
Bloomberg Natural Gas Subindex Merrill Lynch   USD 5,870 01/13/17 —  
Bloomberg Natural Gas Subindex UBS   USD 1,801 09/19/16 —  
Bloomberg Natural Gas Subindex UBS   USD 1,953 09/19/16 —  
Bloomberg Nickel Index Merrill Lynch   USD 1,086 01/13/17 —  
Bloomberg Nickel Index Merrill Lynch   USD 5,058 01/13/17 —  
Bloomberg Silver Subindex Merrill Lynch   USD 5,711 01/13/17 —  
Bloomberg Soy Meal Subindex Merrill Lynch   USD 397 10/04/16 —  
Bloomberg Soy Meal Subindex Merrill Lynch   USD 1,426 10/04/16 —  
Bloomberg Soybean Oil Subindex Merrill Lynch   USD 2,846 10/04/16 —  
Bloomberg Soybeans Subindex Merrill Lynch   USD 1,044 10/04/16 —  
Bloomberg Sugar Subindex Merrill Lynch   USD 4,306 10/04/16 —  
Bloomberg Sugar Subindex UBS   USD 275 08/16/16 —  
Bloomberg Unleaded Gasonline Subindex Merrill Lynch   USD 2,569 10/04/16 —  
Bloomberg Unleaded Gasonline Subindex Merrill Lynch   USD 407 10/04/16 —  
Bloomberg Unleaded Gasonline Subindex UBS   USD 999 09/19/16 —  
Bloomberg Wheat Subindex Merrill Lynch   USD 1,045 10/04/16 —  
Bloomberg Wheat Subindex Merrill Lynch   USD 2,806 10/04/16 —  
Bloomberg WTI Crude Oil Subindex 3 Month Forward UBS   USD 1,361 09/19/16 —  
Bloomberg WTI Crude Oil Subindex 3 Month Forward UBS   USD 2,057 09/19/16 —  
Bloomberg WTI Crude Oil Subindex 3 Month Forward UBS   USD 1,858 09/19/16 —  
Bloomberg Zinc Subindex Merrill Lynch   USD 1,832 10/04/16 —  
Bloomberg Zinc Subindex Merrill Lynch   USD 1,686 10/04/16 —  
Bloomberg Zinc Subindex Merrill Lynch   USD 4,644 10/04/16 —  
Cargill Custom Index(#) Cargill   USD 1,624 03/31/17 —  
Macquarie Commodity Customized Product(##) Macquarie   USD 26,927 08/23/16 (203 )
Merrill Lynch Commodity Index eXtra BIN1 Index(###) Bank of America   USD 30,956 08/31/16 —  
Merrill Lynch Commodity Index eXtra CS2T Index(####) Bank of America   USD 31,413 08/23/16 (213 )
Russell Core Commodity Diversified Index(#####) Newedge Group   USD 148,785 12/31/49 1,701  
 
See accompanying notes which are an integral part of this quarterly report.            
252 Russell Commodity Strategies Fund              

 

 

Russell Investment Company
Russell Commodity Strategies Fund

Consolidated Schedule of Investments, continued — July 31, 2016 (Unaudited)

Total Return Swap Contracts (*)            
Amounts in thousands            
    Notional Termination Fair Value  
Underlying Reference Entity Counterparty Amount Date $  
Societe Generale Commodity P04T Index(######) Societe Generale USD 17,342 08/23/16 (150 )
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       666  

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The fixed fees embedded in the total
return swaps held as of July 31, 2016 ranged from 0.13% to 0.50%. The floating rate fees were all based on the 3-month Treasury Bill rate plus
a fee ranging from 0.138% to 0.296%.

(#) The following table represents the individual commodity positions underlying the Cargill Custom Index swap contract:

Description % Weights  
Gold 10.7  
Natural Gas 9.5  
WTI Crude Oil 9.4  
Brent Crude Oil 7.8  
Live Cattle 6.6  
Copper 6.1  
Cotton 6.1  
Corn 5.6  
Soybeans 4.9  
Silver 4.6  
Aluminum 3.8  
Heating Oil 3.6  
Sugar 3.6  
Unleaded Gasoline 2.9  
Zinc 2.7  
Soybean Meal 2.6  
Wheat 2.6  
Soybean Oil 2.3  
Coffee 2.2  
Nickel 2.2  
Cocoa 1.8  
Lean Hogs 1.5  
Kansas Wheat 0.9  
London Cocoa (4.0 )
Total 100.0  
 
(##) The following table represents the individual commodity positions underlying the Macquarie Commodity Customized Product swap contract:  
 
Description % Weights  
Gold 12.1  
Natural Gas 9.0  
Brent Crude Oil 8.2  
WTI Crude Oil 7.6  
Copper 7.0  
Corn 6.1  
Soybeans 5.7  
Silver 5.3  
Aluminum 4.4  
Sugar 4.2  
Heating Oil 3.9  
Unleaded Gasoline 3.5  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Commodity Strategies Fund 253

 

Russell Investment Company
Russell Commodity Strategies Fund

Consolidated Schedule of Investments, continued — July 31, 2016 (Unaudited)

Soybean Meal 3.2
Zinc 3.1
Wheat 2.6
Coffee 2.5
Soybean Oil 2.5
Live Cattle 2.5
Nickel 2.5
Lean Hogs 1.7
Cotton 1.5
Kansas Wheat 0.9
Total 100.0
 
(###) The following table represents the individual commodity positions underlying the Merrill Lynch Commodity Index eXtra BIN1 Index swap
contract:  
 
Description % Weights
Gold 16.9
Natural Gas 11.2
Corn 10.0
Copper 9.8
Soybeans 9.1
Silver 6.6
Sugar 6.2
Unleaded Gasoline 5.9
Soybean Meal 5.1
Aluminum 4.8
Zinc 4.2
Live Cattle 3.6
Lean Hogs 3.5
Nickel 3.1
Total 100.0
 
(####) The following table represents the individual commodity positions underlying the Merrill Lynch Commodity Index eXtra CS2T Index swap
contract:  
 
Description % Weights
Gold 12.1
Natural Gas 8.9
Brent Crude Oil 8.3
WTI Crude Oil 7.7
Copper 7.0
Corn 6.0
Soybeans 5.7
Silver 5.3
Aluminum 4.4
Sugar 4.2
Heating Oil 3.9
Unleaded Gasoline 3.5
Soybean Meal 3.1
Zinc 3.1
Wheat 2.6
Coffee 2.5
Soybean Oil 2.5
Live Cattle 2.5
Nickel 2.5
Lean Hogs 1.8

 

See accompanying notes which are an integral part of this quarterly report.

254 Russell Commodity Strategies Fund

 

Russell Investment Company
Russell Commodity Strategies Fund

Consolidated Schedule of Investments, continued — July 31, 2016 (Unaudited)

Cotton 1.5
Kansas Wheat 0.9
Total 100.0
 
(#####) The following table represents the individual commodity positions underlying the Russell Core Commodity Diversified Index swap contract:
 
Description % Weights
Gold 14.9
Brent Crude Oil 12.4
Natural Gas 12.0
WTI Crude Oil 9.3
Silver 8.6
Copper 7.6
Corn 5.8
Heating Oil 3.9
Unleaded Gasoline 3.8
Nickel 3.5
Zinc 2.9
Soybeans 2.7
Coffee 2.3
Wheat 2.3
Aluminum 2.2
Soymeal Meal 1.4
Soymeal Oil 1.2
Kansas Wheat 1.1
Sugar 1.0
Live Cattle 0.5
Cotton 0.3
Lean Hogs 0.3
Total 100.0
 
(######) The following table represents the individual commodity positions underlying the Societe Generale Commodity PO4T Index swap contract:
 
Description % Weights
Gold 12.2
Natural Gas 8.9
Brent Crude Oil 8.2
WTI Crude Oil 7.6
Copper 7.0
Corn 6.1
Soybeans 5.7
Silver 5.3
Aluminum 4.4
Sugar 4.2
Heating Oil 3.9
Unleaded Gasoline 3.5
Soybean Meal 3.2
Zinc 3.1
Wheat 2.6
Coffee 2.5
Soybean Oil 2.5
Live Cattle 2.5
Nickel 2.5
Lean Hogs 1.7
Cotton 1.5

 

See accompanying notes which are an integral part of this quarterly report.

Russell Commodity Strategies Fund 255

 

Russell Investment Company
Russell Commodity Strategies Fund

Consolidated Schedule of Investments, continued — July 31, 2016 (Unaudited)

Kansas Wheat 0.9                        
Total 100.0                        
 
Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                  Practical      
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Short-Term Investments $ —   $ 31,993   $ — $ 612,292 $ 644,285  
Total Investments —   31,993   — 612,292 644,285  
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 362   —   — — 362  
Total Return Swap Contracts —   1,701   — — 1,701  
Liabilities                          
Futures Contracts (376 ) —   — — (376 )
Total Return Swap Contracts —   (1,035 ) — — (1,035 )
Total Other Financial Instruments* $ (14 ) $ 666   $ — $ — $ 652  
 
*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.      
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair  
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.  
 
For a description of the Levels see note 2 in the Notes to Quarterly Report.                
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly  
Report.                          

 

See accompanying notes which are an integral part of this quarterly report.

256 Russell Commodity Strategies Fund

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Common Stocks - 96.3%           COSCO Pacific, Ltd. 9,953,765   10,280
Australia - 8.3%           ENN Energy Holdings, Ltd. 33,980   161
APA Group 457,402   3,381 Hopewell Highway Infrastructure, Ltd. 496,929   254
AusNet Services 2,426,868   3,269 Jiangsu Expressway Co., Ltd. Class H 6,443,684   9,111
DUET Group 344,030   704         23,748
Macquarie Atlas Roads Group 1,182,970   5,243          
Spark Infrastructure Group 3,959,002   7,889 France - 5.2%        
Sydney Airport 1,365,663   7,857 Aeroports de Paris 50,027   5,317
Transurban Group - ADR 7,102,339   67,847 Engie SA 333,842   5,488
          96,190 Eutelsat Communications SA 6,187   123
            Groupe Eurotunnel SE 2,397,165   24,904
Austria - 0.3%           Rubis SCA 74,780   6,034
Flughafen Wien AG 106,765   3,145 Suez Environnement Co. 221,655   3,599
Oesterreichische Post AG 12,661   442 Veolia Environnement SA 48,511   1,076
          3,587 Vinci SA 169,951   12,888
                    59,429
Belgium - 0.2%                    
bpost SA 67,716   1,772 Germany - 1.2%        
Elia System Operator SA 14,621   779 Fraport AG Frankfurt Airport Services        
          2,551 Worldwide 242,172   13,229
 
Brazil - 0.8%           Hong Kong - 3.1%        
CCR SA 666,514   3,850 Cheung Kong Infrastructure Holdings,        
Cia de Saneamento Basico do Estado de           Ltd. 167,076   1,480
Sao Paulo - ADR(Æ) 347,462   3,280 China Everbright International, Ltd. 2,368,360   2,550
CPFL Energias Renovaveis SA(Æ) 91,292   308 China Merchants Holdings International        
Energisa SA 90,066   578 Co., Ltd.(Ñ) 6,856,231   20,163
Ultrapar Participacoes SA 69,903   1,596 Hong Kong & China Gas Co., Ltd. 250,066   463
          9,612 MTR Corp., Ltd. 95,961   544
            Power Assets Holdings, Ltd. 1,056,820   10,365
Canada - 9.9%                   35,565
AltaGas, Ltd. - ADR 19,429   495          
Brookfield Infrastructure Partners, LP(Ñ) 28,539   1,343 India - 0.3%        
Brookfield Renewable Energy Partners,           Power Grid Corp. of India, Ltd. 1,382,953   3,637
LP 69,751   2,169          
Emera, Inc.(Ñ) 143,630   5,355 Indonesia - 0.1%        
Enbridge, Inc.(Ñ) 1,104,352   45,427 Tower Bersama Infrastructure Tbk PT 1,668,048   726
Fortis, Inc. 14,446   479          
Inter Pipeline, Ltd. 23,688   495 Italy - 5.7%        
Keyera Corp. 203,740   5,849 ASTM SpA 660   7
Pembina Pipeline Corp. 34,797   1,015 Atlantia SpA 1,535,090   38,347
TransCanada Corp.(Ñ) 909,833   42,183 Ei Towers SpA(Æ) 26,128   1,410
Veresen, Inc. 123,296   1,043 Hera SpA 1,722,829   4,879
Waste Connections, Inc. 109,005   8,119 Infrastrutture Wireless Italiane SpA(Þ) 1,020,201   5,096
          113,972 Snam Rete Gas SpA 2,092,567   12,102
            Societa Iniziative Autostradali e Servizi        
Cayman Islands - 0.1%           SpA 28,722   261
HKBN, Ltd. 760,949   909 Terna Rete Elettrica Nazionale SpA 556,506   3,029
                    65,131
Chile - 0.5%                    
AES Gener SA 2,379,713   1,151 Japan - 3.5%        
Aguas Andinas SA Class A 2,892,271   1,748 East Japan Railway Co. 162,883   14,959
Empresa Nacional de Electricidad SA           Japan Airport Terminal Co., Ltd.(Ñ) 217,810   9,636
- ADR 23,406   639 Kamigumi Co., Ltd. 1,503,496   13,520
Endesa Americas SA - ADR 23,823   334 Tokyo Gas Co., Ltd. 151,000   640
Enersis Americas SA - ADR 125,279   1,087 West Japan Railway Co. 23,400   1,450
Enersis Chile SA - ADR 197,645   1,135         40,205
          6,094          
            Luxembourg - 0.1%        
China - 2.1%           SES SA 74,105   1,622
China Everbright Water, Ltd.(Ñ) 1,561,320   700          
China Resources Gas Group, Ltd. 1,102,839   3,242          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Infrastructure Fund 257

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Malaysia - 0.1%         Switzerland - 1.0%        
Petronas Gas BHD 140,533   769 Flughafen Zuerich AG 60,086   11,260
Westports Holdings BHD 143,204   158          
        927 United Kingdom - 4.8%        
          BBA Aviation PLC 1,114,630   3,510
Mexico - 1.6%         Centrica PLC 179,611   573
Grupo Aeroportuario del Centro Norte         Inmarsat PLC 123,715   1,279
SAB de CV - ADR 82,661   4,101 National Grid PLC 1,233,356   17,693
Grupo Aeroportuario del Pacifico SAB de         National Grid PLC - ADR(Ñ) 119,143   8,632
CV Class B 624,557   6,145 Pennon Group PLC 7,509   90
Grupo Aeroportuario del Pacifico SAB de         Scottish & Southern Energy PLC(Ñ) 713,971   14,320
CV - ADR 41,592   4,087 Severn Trent PLC Class H 69,505   2,252
Infraestructura Energetica Nova SAB         United Utilities Group PLC 560,235   7,536
de CV 62,943   254         55,885
OHL Mexico SAB de CV 794,312   1,078          
Promotora y Operadora de         United States - 38.1%        
Infraestructura SAB de CV Class L 225,776   2,111 AES Corp. 349,048   4,311
Promotora y Operadora de         Alliant Energy Corp. 195,247   7,859
Infraestructura SAB de CV 63,501   741 Ameren Corp. 9,673   507
        18,517 American Electric Power Co., Inc. 20,012   1,387
          American Tower Corp.(ö) 16,215   1,877
Netherlands - 0.2%         American Water Works Co., Inc. 109,628   9,053
Koninklijke Vopak NV 35,399   1,819 Atmos Energy Corp. 123,760   9,875
          Avangrid, Inc. 4,402   199
New Zealand - 1.6%         Buckeye Partners, LP 20,153   1,452
Auckland International Airport, Ltd. 2,211,003   11,785 CenterPoint Energy, Inc. 128,876   3,083
Infratil, Ltd. 1,689,684   4,113 Cheniere Energy, Inc.(Æ) 115,323   4,824
Port of Tauranga, Ltd.(Ñ) 208,320   2,950 CMS Energy Corp. 124,294   5,616
Vector, Ltd. 4,071   10 Connecticut Water Service, Inc. 25,998   1,327
        18,858 Covanta Holding Corp. 18,079   290
          Crown Castle International Corp.(ö) 123,767   12,009
Norway - 0.0%         CSX Corp. 265,497   7,521
Hafslund ASA Class B 53,026   489 Digital Realty Trust, Inc.(ö) 48,279   5,043
Philippines - 0.1%         Dominion Resources, Inc. 190,251   14,843
International Container Terminal         DTE Energy Co. 6,364   621
Services, Inc. 743,592   1,011 Duke Energy Corp. 276,292   23,648
          Edison International 94,697   7,328
Portugal - 0.1%         El Paso Electric Co. 109,014   5,198
REN - Redes Energeticas Nacionais         Enterprise Products Partners, LP(Ñ) 419,260   11,936
SGPS SA(Ñ) 427,014   1,298 Equinix, Inc.(ö) 5,246   1,956
          Eversource Energy 249,732   14,607
Singapore - 1.0%         Genesee & Wyoming, Inc. Class A(Æ) 1,450   94
CitySpring Infrastructure Trust 8,492,963   3,197 Kansas City Southern 24,387   2,344
ComfortDelGro Corp., Ltd. 785,816   1,659 Kinder Morgan, Inc. 2,187,640   44,475
Hutchison Port Holdings Trust Class U 7,506,827   3,591 Macquarie Infrastructure Corp. 81,902   6,278
Parkway Life Real Estate Investment         Magellan Midstream Partners, LP(Ñ) 111,779   8,144
Trust(ö) 1,099,890   2,092 New Jersey Resources Corp. 60,759   2,263
SATS, Ltd. 331,536   1,081 NextEra Energy, Inc. 429,254   48,148
        11,620 NiSource, Inc. 151,968   3,899
          Norfolk Southern Corp. 1,400   126
Spain - 6.3%         NorthWestern Corp. 4,405   268
Abertis Infraestructuras SA 1,739,024   27,328 ONE Gas, Inc. 43,468   2,824
Aena SA(Þ) 98,968   14,259 ONEOK, Inc. 65,330   2,926
Cellnex Telecom SAU(Þ) 97,193   1,719 Pattern Energy Group, Inc. Class A 68,737   1,675
Enagas SA 111,201   3,386 PG&E Corp. 459,795   29,399
Ferrovial SA 210,459   4,348 Phillips 66 Partners, LP(Ñ) 20,313   1,087
Iberdrola SA 2,492,776   17,092 Pinnacle West Capital Corp. 21,194   1,672
Red Electrica Corp. SA 178,291   4,082 Plains All American Pipeline, LP 3,356   93
Saeta Yield SA - ADR 43,672   448 Plains GP Holdings, LP Class A 157,242   1,670
        72,662 PNM Resources, Inc. 43,115   1,481
          PPL Corp. 78,292   2,952

 

See accompanying notes which are an integral part of this quarterly report.

258 Russell Global Infrastructure Fund

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

  Amounts in thousands (except share amounts)      
          Principal   Fair  
          Amount ($)   Value  
          or Shares   $  
  Rice Midstream Partners, LP   39,200   742  
  SBA Communications Corp. Class A(Æ)   74,545   8,573  
  SemGroup Corp. Class A   21,906   634  
  Sempra Energy   80,354   8,990  
  Shell Midstream Partners, LP   105,628   3,434  
  SJW Corp.   300   13  
  South Jersey Industries, Inc.   13,126   418  
  Southern Co. (The)   78,039   4,175  
  Southwest Gas Corp.   6,397   496  
  Spectra Energy Corp.   772,931   27,802  
  Spire, Inc.   17,107   1,187  
  Targa Resources Corp.   62,357   2,323  
  UGI Corp.   164,467   7,444  
  Union Pacific Corp.   80,779   7,516  
  Unitil Corp.   30,820   1,348  
  WEC Energy Group, Inc.   211,310   13,716  
  Westar Energy, Inc. Class A   7,620   423  
  WGL Holdings, Inc.   23,223   1,644  
  Williams Cos., Inc. (The)   372,157   8,921  
  Xcel Energy, Inc.   495,439   21,789  
              439,776  
 
  Total Common Stocks              
  (cost $931,126)           1,110,329  
 
  Investments in Other Funds - 0.2%          
  3i Infrastructure PLC   450,387   1,135  
  John Laing Infrastructure Fund, Ltd.   408,490   738  
  Total Investments in Other Funds              
  (cost $1,745)           1,873  
 
Short -Term Investments - 2.2%              
  United States - 2.2%              
  Russell U.S. Cash Management Fund   25,366,750 (8) 25,367  
  Total Short-Term Investments              
  (cost $25,367)           25,367  
 
  Other Securities - 5.6%              
  Russell U.S. Cash Collateral Fund(×)   64,762,713 (8) 64,763  
  Total Other Securities              
  (cost $64,763)           64,763  
 
  Total Investments 104.3%              
  (identified cost $1,023,001)           1,202,332  
 
  Other Assets and Liabilities, Net              
- (4.3%)         (49,156 )
  Net Assets - 100.0%           1,153,176  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Infrastructure Fund 259

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
CAC40 Euro Index Futures 46 EUR 2,042 08/16 36  
DAX Index Futures 2 EUR 516 09/16 6  
Euro STOXX 50 Index Futures 44 EUR 1,313 09/16 35  
FTSE 100 Index Futures 22 GBP 1,469 09/16 16  
Hang Seng Index Futures 14 HKD 15,242 08/16 (31 )
IBEX 35 Index Futures 45 EUR 3,857 08/16 66  
S&P/TSX 60 Index Futures 26 CAD 4,397 09/16 31  
SPI 200 Index Futures 33 AUD 4,553 09/16 114  
TOPIX Index Futures 9 JPY 119,565 09/16 56  
XAU Utilities  280 USD 14,703 09/16 34  
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               363  

 

Foreign Currency Exchange Contracts                      
Amounts in  thousands                      
                    Unrealized  
                    Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Australia and New Zealand Banking Group USD   134 MXN   2,517 08/01/16 —  
Australia and New Zealand Banking Group USD   94 MXN   1,772 08/02/16 1  
Australia and New Zealand Banking Group AUD   1,273 USD   959 08/02/16 (8 )
Australia and New Zealand Banking Group CAD   1,807 USD   1,373 08/02/16 (11 )
Australia and New Zealand Banking Group EUR   1,192 USD   1,321 08/02/16 (12 )
Bank of America USD   1,139 AUD   1,520 09/21/16 14  
Bank of America USD   1,408 AUD   1,896 09/21/16 31  
Bank of America USD   382 CAD   500 09/21/16 1  
Bank of America USD   929 CAD   1,188 09/21/16 (19 )
Bank of America USD   1,026 CAD   1,350 09/21/16 8  
Bank of America USD   1,903 CAD   2,430 09/21/16 (42 )
Bank of America USD   38 EUR   35 08/01/16 1  
Bank of America USD   92 EUR   84 08/01/16 2  
Bank of America USD   261 EUR   238 08/01/16 4  
Bank of America USD   354 EUR   322 08/01/16 6  
Bank of America USD   437 EUR   397 08/01/16 7  
Bank of America USD   128 EUR   115 08/02/16 1  
Bank of America USD   118 EUR   106 08/03/16 —  
Bank of America USD   1,204 EUR   1,090 09/21/16 17  
Bank of America USD   2,808 EUR   2,530 09/21/16 26  
Bank of America USD   3,256 EUR   2,856 09/21/16 (57 )
Bank of America USD   265 GBP   200 09/21/16 —  
Bank of America USD   606 GBP   460 09/21/16 3  
Bank of America USD   792 GBP   543 09/21/16 (74 )
Bank of America USD   713 HKD   5,530 09/21/16 —  
Bank of America USD   804 HKD   6,239 09/21/16 —  
Bank of America USD   445 JPY   47,599 09/21/16 22  
Bank of America USD   497 JPY   52,280 09/21/16 16  
Bank of America AUD   205 USD   153 09/21/16 (4 )
Bank of America AUD   280 USD   210 09/21/16 (2 )
Bank of America AUD   380 USD   285 09/21/16 (4 )
Bank of America AUD   560 USD   413 09/21/16 (12 )
Bank of America AUD   640 USD   474 09/21/16 (11 )
Bank of America AUD   660 USD   493 09/21/16 (8 )
Bank of America AUD   960 USD   718 09/21/16 (10 )
Bank of America AUD   6,300 USD   4,797 09/21/16 17  
Bank of America CAD   330 USD   250 09/21/16 (3 )
Bank of America CAD   470 USD   359 09/21/16 (1 )

 

See accompanying notes which are an integral part of this quarterly report.

260 Russell Global Infrastructure Fund

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America CAD 490 USD   383 09/21/16 8  
Bank of America CAD 490 USD   376 09/21/16 1  
Bank of America CAD 1,660 USD   1,283 09/21/16 12  
Bank of America CAD 6,100 USD   4,730 09/21/16 57  
Bank of America EUR 27 USD   29 08/01/16 —  
Bank of America EUR 160 USD   177 08/01/16 (2 )
Bank of America EUR 162 USD   181 08/02/16 —  
Bank of America EUR 730 USD   804 09/21/16 (14 )
Bank of America EUR 750 USD   846 09/21/16 5  
Bank of America EUR 1,020 USD   1,132 09/21/16 (11 )
Bank of America EUR 1,290 USD   1,438 09/21/16 (7 )
Bank of America EUR 2,190 USD   2,430 09/21/16 (24 )
Bank of America EUR 10,910 USD   12,159 09/21/16 (64 )
Bank of America GBP 140 USD   184 09/21/16 (1 )
Bank of America GBP 180 USD   240 09/21/16 2  
Bank of America GBP 310 USD   461 09/21/16 51  
Bank of America GBP 530 USD   701 09/21/16 (1 )
Bank of America GBP 2,050 USD   2,736 09/21/16 20  
Bank of America HKD 5,593 USD   721 08/01/16 —  
Bank of America HKD 1,010 USD   130 09/21/16 —  
Bank of America HKD 1,100 USD   142 09/21/16 —  
Bank of America HKD 1,110 USD   143 09/21/16 —  
Bank of America HKD 1,990 USD   257 09/21/16 —  
Bank of America HKD 3,080 USD   397 09/21/16 —  
Bank of America HKD 3,090 USD   398 09/21/16 —  
Bank of America HKD 4,380 USD   565 09/21/16 —  
Bank of America HKD 21,580 USD   2,785 09/21/16 2  
Bank of America JPY 13,020 USD   128 09/21/16 —  
Bank of America JPY 13,210 USD   126 09/21/16 (3 )
Bank of America JPY 13,230 USD   126 09/21/16 (4 )
Bank of America JPY 24,810 USD   242 09/21/16 (1 )
Bank of America JPY 26,800 USD   253 09/21/16 (10 )
Bank of America JPY 144,150 USD   1,370 09/21/16 (45 )
Bank of Montreal USD 141 HKD   1,090 09/21/16 —  
Bank of New York USD 2,039 AUD   2,740 09/21/16 40  
Bank of New York USD 5,153 EUR   4,560 09/21/16 (45 )
Bank of New York USD 1,174 GBP   800 09/21/16 (114 )
Bank of New York USD 1,191 HKD   9,230 09/21/16 —  
Bank of New York USD 742 JPY   77,460 09/21/16 18  
BNP Paribas USD 1,408 AUD   1,896 09/21/16 31  
BNP Paribas USD 929 CAD   1,188 09/21/16 (19 )
BNP Paribas USD 3,256 EUR   2,856 09/21/16 (56 )
BNP Paribas USD 792 GBP   543 09/21/16 (74 )
BNP Paribas USD 804 HKD   6,239 09/21/16 —  
BNP Paribas USD 445 JPY   47,599 09/21/16 23  
Brown Brothers Harriman USD 905 CAD   1,180 09/21/16 (1 )
Brown Brothers Harriman USD 1,833 EUR   1,660 09/21/16 27  
Brown Brothers Harriman USD 433 GBP   330 09/21/16 4  
Chase Bank EUR 432 USD   479 08/01/16 (4 )
Chase Bank JPY 57,163 USD   547 08/02/16 (13 )
Citibank CAD 780 USD   595 09/21/16 (3 )
Citibank GBP 400 USD   520 09/21/16 (9 )
Commonwealth Bank of Australia CAD 480 USD   371 09/21/16 3  
Commonwealth Bank of Australia EUR 980 USD   1,116 09/21/16 18  
Commonwealth Bank of Australia GBP 200 USD   266 09/21/16 1  
Commonwealth Bank of Australia GBP 370 USD   539 09/21/16 50  
Credit Suisse USD 76 HKD   588 08/02/16 —  
Credit Suisse AUD 380 USD   279 09/21/16 (10 )

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Infrastructure Fund 261

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Credit Suisse EUR   450 USD 508 09/21/16 3  
Credit Suisse HKD   1,010 USD 130 09/21/16 —  
Credit Suisse JPY   5,463 USD 52 08/02/16 (1 )
Credit Suisse JPY   25,400 USD 244 09/21/16 (5 )
Credit Suisse NOK   54 USD 6 08/01/16 —  
Credit Suisse NZD   153 USD 108 08/01/16 (2 )
Deutsche Bank USD   9 AUD 13 08/03/16 —  
Deutsche Bank USD   479 CAD 625 08/04/16 —  
Deutsche Bank USD   167 EUR 152 08/01/16 3  
Deutsche Bank USD   635 EUR 574 08/02/16 6  
Deutsche Bank USD   204 EUR 183 08/03/16 —  
Deutsche Bank USD   121 JPY 12,412 08/03/16 1  
Deutsche Bank AUD   759 USD 570 08/02/16 (8 )
Deutsche Bank CAD   16 USD 12 08/03/16 —  
Deutsche Bank CHF   33 USD 33 08/02/16 —  
Deutsche Bank GBP   54 USD 71 08/01/16 —  
Deutsche Bank HKD   802 USD 103 08/01/16 —  
Deutsche Bank JPY   21,743 USD 206 08/01/16 (8 )
Deutsche Bank MXN   31 USD 2 08/02/16 —  
Deutsche Bank SGD   3 USD 2 08/01/16 —  
Deutsche Bank SGD   53 USD 39 08/02/16 —  
JPMorgan Chase EUR   603 USD 668 08/01/16 (7 )
National Australia Bank Limited USD   1,408 AUD 1,896 09/21/16 31  
National Australia Bank Limited USD   930 CAD 1,188 09/21/16 (19 )
National Australia Bank Limited USD   3,257 EUR 2,856 09/21/16 (57 )
National Australia Bank Limited USD   792 GBP 543 09/21/16 (74 )
National Australia Bank Limited USD   804 HKD 6,239 09/21/16 —  
National Australia Bank Limited USD   445 JPY 47,599 09/21/16 22  
National Australia Bank Limited GBP   543 USD 717 08/01/16 (2 )
Royal Bank of Canada EUR   410 USD 455 09/21/16 (5 )
Royal Bank of Canada GBP   60 USD 78 09/21/16 (1 )
State Street USD   410 AUD 550 09/21/16 7  
State Street USD   6,066 AUD 8,040 09/21/16 36  
State Street USD   507 BRL 1,666 08/01/16 7  
State Street USD   200 CAD 264 08/02/16 2  
State Street USD   6,280 CAD 8,190 09/21/16 (6 )
State Street USD   16,786 EUR 15,150 09/21/16 187  
State Street USD   3,916 GBP 3,020 09/21/16 85  
State Street USD   283 HKD 2,190 09/21/16 —  
State Street USD   3,577 HKD 27,720 09/21/16 (2 )
State Street USD   125 JPY 13,220 09/21/16 5  
State Street USD   1,929 JPY 193,310 09/21/16 (31 )
State Street AUD   260 USD 194 09/21/16 (3 )
State Street AUD   500 USD 367 09/21/16 (12 )
State Street AUD   1,070 USD 797 09/21/16 (15 )
State Street AUD   1,860 USD 1,415 09/21/16 4  
State Street BRL   —   USD —   08/02/16 —  
State Street CAD   11 USD 9 08/02/16 —  
State Street CAD   39 USD 29 08/02/16 —  
State Street CAD   170 USD 129 09/21/16 (1 )
State Street CAD   330 USD 253 09/21/16 —  
State Street CAD   660 USD 508 09/21/16 2  
State Street CAD   830 USD 637 09/21/16 1  
State Street EUR   38 USD 43 08/02/16 —  
State Street EUR   520 USD 573 09/21/16 (10 )
State Street EUR   760 USD 843 09/21/16 (9 )
State Street EUR   950 USD 1,047 09/21/16 (17 )
State Street EUR   970 USD 1,083 09/21/16 (4 )

 

See accompanying notes which are an integral part of this quarterly report.

262 Russell Global Infrastructure Fund

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
State Street EUR 3,900 USD   4,325 09/21/16 (43 )
State Street GBP 5 USD   6 08/01/16 —  
State Street GBP 60 USD   79 09/21/16 (1 )
State Street GBP 130 USD   171 09/21/16 (1 )
State Street GBP 200 USD   258 09/21/16 (7 )
State Street GBP 330 USD   438 09/21/16 1  
State Street HKD 990 USD   128 09/21/16 —  
State Street HKD 4,220 USD   544 09/21/16 —  
State Street HKD 6,370 USD   822 09/21/16 —  
State Street IDR 38,958 USD   3 08/01/16 —  
State Street JPY 12,050 USD   118 09/21/16 (1 )
State Street JPY 12,520 USD   122 09/21/16 (1 )
State Street JPY 27,120 USD   255 09/21/16 (11 )
State Street JPY 51,340 USD   491 09/21/16 (13 )
State Street MXN 27 USD   1 08/01/16 —  
State Street MYR 42 USD   10 08/01/16 —  
State Street MYR 9 USD   2 08/02/16 —  
State Street MYR 13 USD   3 08/02/16 —  
UBS CAD 340 USD   263 09/21/16 3  
UBS GBP 130 USD   185 09/21/16 13  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts             (221 )

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (b)   Total
Common Stocks                      
Australia $ — $ 96,190 $ — $ — $   96,190
Austria   —   3,587   —   —     3,587
Belgium   —   2,551   —   —     2,551
Brazil   9,612   —   —   —     9,612
Canada   113,972   —   —   —     113,972
Cayman Islands   —   909   —   —     909
Chile   6,094   —   —   —     6,094
China   —   23,748   —   —     23,748
France   —   59,429   —   —     59,429
Germany   —   13,229   —   —     13,229
Hong Kong   —   35,565   —   —     35,565
India   —   3,637   —   —     3,637
Indonesia   —   726   —   —     726
Italy   —   65,131   —   —     65,131
Japan   —   40,205   —   —     40,205
Luxembourg   —   1,622   —   —     1,622
Malaysia   —   927   —   —     927
Mexico   18,517   —   —   —     18,517
Netherlands   —   1,819   —   —     1,819
New Zealand   —   18,858   —   —     18,858
Norway   —   489   —   —     489
Philippines   —   1,011   —   —     1,011

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Infrastructure Fund 263

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                  Practical      
Portfolio Summary Level 1   Level 2   Level 3 Expedient (b)   Total  
Portugal   —     1,298     —   —   1,298  
Singapore   —     11,620     —   —   11,620  
Spain   —     72,662     —   —   72,662  
Switzerland   —     11,260     —   —   11,260  
United Kingdom   8,632     47,253     —   —   55,885  
United States   439,776     —     —   —   439,776  
Investments in Other Funds —   1,873   — — 1,873  
Short-Term Investments —   —   — 25,367 25,367  
Other Securities —   —   — 64,763 64,763  
Total Investments 596,603   515,599   — 90,130 1,202,332  
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 394   —   — — 394  
Foreign Currency Exchange Contracts 42   927   — — 969  
Liabilities                          
Futures Contracts (31 ) —   — — (31 )
Foreign Currency Exchange Contracts (80 ) (1,110 ) — — (1,190 )
Total Other Financial Instruments* $ 325   $ (183 ) $ — $ — $ 142  

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

Amounts in thousands      
  Fair Value  
Infrastructure Subindustry Exposure   $  
Air Freight & Logistics 2,214
Airport Services 101,690
Alternative Carriers 1,279
Cable & Satellite 1,745
Communications Equipment 1,410
Construction & engineering 17,236
Diversified 1,135
Electric Utilities 248,893
Environmental & Facilities Services 10,959
Gas Utilities 56,583
Healthcare REITs 2,092
Highways & Railtracks 181,082
Independent Power Producers & Energy Traders 6,101
Integrated Telecommunication Services 16,297
Marine Ports & Services 51,673
Multi-Utilities 100,040
Oil & Gas Refining & Marketing 5,849

 

See accompanying notes which are an integral part of this quarterly report.

264 Russell Global Infrastructure Fund

 

Russell Investment Company
Russell Global Infrastructure Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Oil & Gas Storage & Transportation 214,536
Railroads 34,554
Renewable Electricity 6,827
Specialized REITs 20,885
Trucking 1,659
Water Utilities 25,999
Wireless Telecommunication Services 726
Investments in Other Funds 738
Short-Term Investments 25,367
Other Securities 64,763
Total Investments 1,202,332

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Infrastructure Fund 265

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Common Stocks - 96.6%         Unibail-Rodamco SE(ö) 19,757   5,430
Australia - 5.7%                  
BGP Holdings PLC(Å)(Æ) 4,619,419   —         45,346
Dexus Property Group(ö) 1,944,236   14,453 Germany - 2.7%        
Goodman Group(ö) 1,190,722   6,833 ADO Properties SA(Þ) 76,679   3,122
GPT Group (The)(ö) 622,875   2,658 alstria office REIT-AG(ö) 195,142   2,714
Investa Office Fund(ö) 191,493   664 Deutsche EuroShop AG 29,945   1,419
Mirvac Group(ö) 2,816,369   4,700 Deutsche Wohnen AG 348,343   13,028
Scentre Group(ö) 3,724,661   15,019 LEG Immobilien AG 45,684   4,580
 
Shopping Centres Australasia Property       Vonovia SE 319,043   12,636
Group(ö)   188,724   343         37,499
Stockland(ö) 587,585   2,253          
Vicinity Centres(ö) 7,307,937   19,249 Hong Kong - 9.2%      
        Cheung Kong Property Holdings, Ltd.   3,411,200   24,460
Westfield Corp.(ö)   1,592,132   12,939        
        79,111 China Overseas Land & Investment, Ltd.   172,000   567
          Hang Lung Properties, Ltd. - ADR 696,000   1,508
Austria - 0.5%         Henderson Land Development Co., Ltd. 759,643   4,511
Atrium European Real Estate, Ltd. 89,268   393 Hongkong Land Holdings, Ltd. 2,037,242   13,097
Buwog AG 261,337   6,335 Hysan Development Co., Ltd. 941,000   4,334
        6,728        
          Kerry Properties, Ltd.   158,000   432
Brazil - 0.0%         Link REIT(ö) 2,534,797   18,920
BR Properties SA 19,395   54 New World Development Co., Ltd. 1,843,551   2,145
Canada  - 2.4%         Sino Land Co., Ltd. 1,167,600   2,089
 
Allied Properties Real Estate Investment       Sun Hung Kai Properties, Ltd. 2,291,982   32,722
Trust(ö)   348,372   10,571 Swire Properties, Ltd. 2,616,200   7,293
Boardwalk Real Estate Investment         Wharf Holdings, Ltd. (The) 2,258,000   15,603
Trust(Ñ)(ö) 30,865   1,326         127,681
Brookfield Canada Office Properties(ö) 47,621   1,044          
Canadian Apartment Properties(ö) 52,217   1,306 Ireland - 0.3%        
Chartwell Retirement Residences 118,679   1,442 Green REIT PLC(ö) 1,904,039   3,122
Crombie Real Estate Investment Trust(ö) 51,809   626 Hibernia REIT PLC(ö) 948,458   1,442
Dream Office Real Estate Investment                 4,564
Trust(ö) 38,607   560          
First Capital Realty, Inc. Class A 178,946   3,178 Italy - 0.1%      
        Beni Stabili SpA SIIQ(Æ)(ö)   912,410   597
H&R Real Estate Investment Trust(Ñ)(ö)   135,600   2,415          
RioCan Real Estate Investment Trust(ö) 130,474   2,896 Japan - 11.0%        
Smart Real Estate Investment Trust(ö) 275,411   8,123 Activia Properties, Inc.(ö) 1,115   5,839
        33,487 Advance Residence Investment Corp.(ö) 891   2,484
          Aeon Mall Co., Ltd. 61,100   818
China - 0.0%       Daiwa House REIT Investment Corp.(ö) 189   1,163
China Resources Land, Ltd.   48,000   120        
          Daiwa Office Investment Corp.(ö)   86   513
Finland - 0.1%         Frontier Real Estate Investment Corp.(ö) 43   231
Citycon OYJ 687,746   1,719 GLP J-Reit(ö) 2,098   2,671
France - 3.3%         Hulic Co., Ltd. 120,135   1,245
Fonciere Des Regions(ö) 7,120   669 Hulic Reit, Inc.(ö) 3,373   5,986
Gecina SA(ö) 14,232   2,152 Invincible Investment Corp.(ö) 5,644   3,785
Icad, Inc.(ö) 53,619   4,130 Japan Excellent, Inc.(ö) 341   482
Klepierre - GDR(ö) 548,066   26,214 Japan Hotel REIT Investment Corp.(ö) 3,023   2,544
Unibail-Rodamco SE(Æ)(ö) 24,530   6,751 Japan Logistics Fund, Inc.(ö) 401   942
          Japan Prime Realty Investment Corp.(ö) 417   1,835

 

See accompanying notes which are an integral part of this quarterly report.

266 Russell Global Real Estate Securities Fund

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Japan Real Estate Investment Corp.(ö) 1,307   7,901 Spain - 0.8%        
Japan Retail Fund Investment Corp.(ö) 1,322   3,254 Hispania Activos Inmobiliarios SA(Æ)(ö) 164,295   2,199
 
Kenedix Office Investment Corp. Class       Inmobiliaria Colonial SA 274,316   2,168
A(Æ)(ö)   281   1,757 Merlin Properties Socimi SA(ö) 571,489   6,533
LaSalle Logiport REIT(ö) 1   1         10,900
Mitsubishi Estate Co., Ltd. 1,542,000   28,690          
 
Mitsui Fudosan Co., Ltd. 1,427,350   30,818 Sweden - 0.7%      
          Atrium Ljungberg AB Class B   29,956   506
Mori Hills REIT Investment Corp. Class       Castellum AB 214,372   3,237
A(ö)   382   601          
Mori Trust Sogo Reit, Inc.(ö) 478   886 Fabege AB 75,233   1,343
Nippon Building Fund, Inc.(ö) 519   3,193 Hufvudstaden AB Class A 82,512   1,378
Nippon Prologis REIT, Inc.(ö) 508   1,268 Wihlborgs Fastigheter AB 140,735   3,119
                9,583
Nomura Real Estate Master Fund, Inc.(ö)   6,721   11,116          
Orix JREIT, Inc.(ö) 2,714   5,012 Switzerland - 0.5%        
Premier Investment Corp.(ö) 101   138 PSP Swiss Property AG 25,863   2,608
 
Sumitomo Realty & Development Co.,       Swiss Prime Site AG Class A 45,460   4,176
Ltd.   355,000   9,191         6,784
Tokyo Tatemono Co., Ltd. 777,300   9,681          
 
Tokyu REIT, Inc.(ö) 45   64 United Kingdom - 5.6%      
        Assura PLC(ö)   2,611,489   2,032
Top REIT, Inc.(ö)   30   129        
        Big Yellow Group PLC(ö)   521,704   4,898
United Urban Investment Corp.(ö)   4,638   8,676        
        152,914 British Land Co. PLC (The)(ö)   660,345   5,856
          Capital & Regional PLC(ö) 721,139   560
Netherlands - 0.7%                
        Derwent London PLC(ö)   138,616   5,208
Eurocommercial Properties NV   34,945   1,547        
        Great Portland Estates PLC(ö)   568,075   5,133
NSI NV(ö)   515,278   2,280        
        Hammerson PLC(ö)   1,606,870   11,842
Vastned Retail NV(ö)   8,244   346        
        Helical PLC   32,116   121
Wereldhave NV(ö)   108,778   5,263        
        9,436 Intu Properties PLC Class H(ö)   346,532   1,374
          Kennedy Wilson Europe Real Estate        
Norway - 0.1%         PLC 185,584   2,442
Entra ASA(Þ) 134,045   1,425 Land Securities Group PLC(ö) 867,888   12,549
Norwegian Property ASA 159,198   189 LondonMetric Property PLC(ö) 2,566,203   5,495
        1,614 LXB Retail Properties PLC 601,182   493
Singapore  - 1.4%         Segro PLC(ö) 1,832,057   10,731
Ascendas Real Estate Investment         Shaftesbury PLC(ö) 19,668   243
Trust(ö) 1,767,800   3,243 St. Modwen Properties PLC 242,123   903
CapitaLand Commercial Trust, Ltd.(ö) 575,500   648 UNITE Group PLC (The) 692,187   5,796
CapitaLand Mall Trust Class A(ö) 4,159,500   6,652 Urban & Civic PLC 298,751   882
CapitaLand, Ltd. 1,549,200   3,685 Workspace Group PLC(ö) 39,165   365
City Developments, Ltd. 86,900   555         76,923
EC World REIT(Æ) 160,500   98 United States - 51.5%        
Global Logistic Properties, Ltd. 730,300   1,045 Acadia Realty Trust(ö) 69,769   2,628
Mapletree Commercial Trust(ö) 133,100   157 Alexandria Real Estate Equities, Inc.(ö) 67,192   7,546
Mapletree Industrial Trust(ö) 1,824,800   2,467 American Campus Communities, Inc.(ö) 61,302   3,315
Mapletree Logistics Trust(ö) 697,600   551 American Homes 4 Rent Class A(ö) 435,497   9,450
 
Suntec Real Estate Investment Trust(ö) 62,700   78 Apartment Co. Class Investment A(ö) & Management 376,924   17,327
UOL Group, Ltd.   152,580   660          
        19,839 Apple Hospitality REIT, Inc.(Ñ)(ö) 76,875   1,566
          AvalonBay Communities, Inc.(ö) 145,954   27,096

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Real Estate Securities Fund 267

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Boston Properties, Inc.(ö) 171,641   24,395 Mack-Cali Realty Corp.(ö) 26,078   735
 
Brandywine Realty Trust(ö) 145,362   2,452 Mid-America Apartment Communities,      
        Inc.(ö)   729   77
Brixmor Property Group, Inc.(ö)   459,603   13,053        
Brookdale Senior Living, Inc. Class         National Health Investors, Inc.(ö)   24,625   1,935
A(Æ) 178,825   3,303 National Retail Properties, Inc.(ö) 146,498   7,788
Camden Property Trust(ö) 79,121   7,089 Omega Healthcare Investors, Inc.(Ñ)(ö) 294,074   10,146
Care Capital Properties, Inc.(ö) 126,514   3,742 Paramount Group, Inc.(ö) 218,769   3,857
CBL & Associates Properties, Inc.(ö) 9,277   114 Pebblebrook Hotel Trust(ö) 47,430   1,406
Chesapeake Lodging Trust(ö) 76,703   1,938 Post Properties, Inc.(ö) 48,160   3,063
Corporate Office Properties Trust(ö) 45,029   1,349 Prologis, Inc.(ö) 449,305   24,483
Cousins Properties, Inc.(ö) 693,658   7,381 Public Storage(ö) 79,226   18,929
CubeSmart(ö) 119,795   3,559 QTS Realty Trust, Inc. Class A(ö) 114,324   6,545
CyrusOne, Inc.(ö) 9,230   506 Ramco-Gershenson Properties Trust(ö) 168,064   3,334
DCT Industrial Trust, Inc.(ö) 31,711   1,593 Realty Income Corp.(ö) 60,992   4,359
DDR Corp.(ö) 185,478   3,661 Regency Centers Corp.(ö) 108,256   9,194
DiamondRock Hospitality Co.(ö) 331,881   3,259 Retail Opportunity Investments Corp.(ö) 220,395   5,032
Digital Realty Trust, Inc.(Ñ)(ö) 103,479   10,809 Rexford Industrial Realty, Inc.(ö) 153,612   3,512
Douglas Emmett, Inc.(ö) 203,510   7,742 RLJ Lodging Trust(ö) 34,792   826
Duke Realty Corp.(ö) 108,535   3,125 Senior Housing Properties Trust(ö) 90,319   2,006
DuPont Fabros Technology, Inc.(ö) 109,047   5,216 Simon Property Group, Inc.(ö) 381,718   86,665
Education Realty Trust, Inc.(ö) 106,137   5,109 SL Green Realty Corp.(ö) 85,877   10,118
Empire State Realty Trust, Inc. Class         Sovran Self Storage, Inc.(Æ)(ö) 23,560   2,412
A(ö) 281,160   5,902        
        Spirit Realty Capital, Inc.(ö)   849,261   11,609
EPR Properties(ö)   42,745   3,591        
        STORE Capital Corp.(ö)   58,256   1,817
Equinix, Inc.(ö)   5,027   1,874        
          Sun Communities, Inc.(ö)   117,284   9,283
Equity A(ö) LifeStyle Properties, Inc. Class 109,033   8,967 Sunstone Hotel Investors, Inc.(ö) 232,808   3,097
Equity One, Inc.(ö) 39,227   1,305 Tanger Factory Outlet Centers, Inc.(ö) 249,192   10,401
Equity Residential(ö) 362,787   24,666 Taubman Centers, Inc.(ö) 26,343   2,132
Essex Property Trust, Inc.(ö) 101,660   23,776 UDR, Inc.(ö) 242,576   9,031
Extra Space Storage, Inc.(ö) 63,335   5,448 Ventas, Inc.(ö) 145,821   11,106
Federal Realty Investment Trust(ö) 28,349   4,811 Vornado Realty Trust(ö) 319,091   34,270
First Industrial Realty Trust, Inc.(ö) 90,921   2,679 Washington Real Estate Investment      
        Trust(ö)   30,600   1,049
Gaming and Leisure Properties, Inc.(ö)   197,581   7,079        
        Weingarten Realty Investors(ö)   127,785   5,519
General Growth Properties, Inc.(ö)   540,542   17,270        
        Welltower, Inc.(ö)   133,217   10,568
HCP, Inc.(ö)   703,885   27,613        
        WP Glimcher, Inc.(ö)   51,181   649
Healthcare Realty Trust, Inc.(ö)   243,963   8,822        
Healthcare Trust of America, Inc. Class         Xenia Hotels & Resorts, Inc.(ö)   57,621   1,035
                713,593
A(ö)   17,929   610          
Hilton Worldwide Holdings, Inc. 557,533   12,929 Total Common Stocks        
Host Hotels & Resorts, Inc.(ö) 929,373   16,487 (cost $1,021,938)       1,338,492
Hudson Pacific Properties, Inc.(ö) 445,366   15,058          
InfraREIT, Inc.(ö) 58,884   1,040 Short-Term Investments - 2.5%        
        United States - 2.5%        
Kilroy Realty Corp.(ö)   119,197   8,726        
        Russell U.S. Cash Management Fund   35,244,162 (8) 35,244
Kimco Realty Corp.(ö)   144,939   4,653 Total Short-Term Investments        
LaSalle Hotel Properties(ö) 233,067   6,421 (cost $35,244)       35,244
Liberty Property Trust(ö) 134,078   5,548          
LTC Properties, Inc.(ö) 26,789   1,434 Other Securities - 1.1%        
        Russell U.S. Cash Collateral Fund(×) 15,114,213 (8) 15,114
Macerich Co. (The)(ö)   6,416   573 Total Other Securities        

 

See accompanying notes which are an integral part of this quarterly report.

268 Russell Global Real Estate Securities Fund

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

  Amounts in thousands (except share amounts)      
  Principal   Fair  
  Amount ($)   Value  
  or Shares   $  
  (cost $15,114)   15,114  
 
  Total Investments 100.2%      
  (identified cost $1,072,296)   1,388,850  
 
  Other Assets and Liabilities, Net      
- (0.2%) (3,311 )
  Net Assets - 100.0%   1,385,539  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Real Estate Securities Fund 269

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                    
 
          Principal   Cost per   Cost   Fair Value  
% of Net Assets   Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities   Date     or shares   $   $   $  
0.0%                      
BGP Holdings PLC   08/06/09 AUD 4,619,419 — —   —  
                      —  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.              

 

Futures Contracts                  
 
Amounts in thousands (except contract amounts)                  
                Unrealized  
                Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                  
Dow Jones U.S. Real Estate Index Futures 502 USD 16,847 09/16 294  
FTSE/EPRA Europe Futures 560 EUR 12,155 09/16 574  
Hang Seng Index Futures 14 HKD 15,242 08/16 (28 )
MSCI Singapore IX ETS Index Futures 30 SGD 937 08/16 (16 )
S&P/TSX 60 Index Futures 7 CAD 1,184 09/16 5  
SPI 200 Index Futures 18 AUD 2,483 09/16 48  
TOPIX Index Futures 28 JPY 371,980 09/16 64  
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               941  

 

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD   74 AUD 100 09/21/16 3  
Bank of America USD   300 AUD 400 09/21/16 4  
Bank of America USD   524 AUD 700 09/21/16 7  
Bank of America USD   705 AUD 949 09/21/16 15  
Bank of America USD   78 CAD 100 09/21/16 (2 )
Bank of America USD   79 CAD 100 09/21/16 (2 )
Bank of America USD   232 CAD 300 09/21/16 (2 )
Bank of America USD   306 CAD 400 09/21/16 1  
Bank of America USD   326 CAD 417 09/21/16 (7 )
Bank of America USD   —   EUR —   08/01/16 —  
Bank of America USD   11 EUR 10 08/01/16 —  
Bank of America USD   1 EUR 1 08/02/16 —  
Bank of America USD   684 EUR 600 09/21/16 (12 )
Bank of America USD   1,144 EUR 1,000 09/21/16 (23 )
Bank of America USD   2,226 EUR 2,000 09/21/16 15  
Bank of America USD   3,314 EUR 3,000 09/21/16 47  
Bank of America USD   5,084 EUR 4,459 09/21/16 (89 )
Bank of America USD   13 GBP 10 08/01/16 —  
Bank of America USD   193 HKD 1,500 09/21/16 —  
Bank of America USD   387 HKD 3,000 09/21/16 —  
Bank of America USD   645 HKD 5,000 09/21/16 —  
Bank of America USD   850 HKD 6,590 09/21/16 —  
Bank of America USD   111 JPY 11,737 08/01/16 4  
Bank of America USD   44 JPY 4,588 08/02/16 1  
Bank of America USD   66 JPY 6,864 08/03/16 1  
Bank of America USD   109 JPY 11,256 08/03/16 1  
Bank of America USD   629 JPY 64,375 08/03/16 2  
Bank of America USD   280 JPY 30,000 09/21/16 14  
Bank of America USD   297 JPY 30,000 09/21/16 (2 )
Bank of America USD   948 JPY 100,000 09/21/16 34  

 

See accompanying notes which are an integral part of this quarterly report.

270 Russell Global Real Estate Securities Fund

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD   1,480 JPY 158,280 09/21/16 73  
Bank of America USD   143 SGD 194 08/04/16 2  
Bank of America USD   74 SGD 100 09/21/16 1  
Bank of America USD   111 SGD 150 09/21/16 2  
Bank of America USD   122 SGD 166 09/21/16 3  
Bank of America AUD   861 USD 654 08/03/16 (1 )
Bank of America AUD   1,240 USD 941 08/03/16 (1 )
Bank of America AUD   100 USD 73 09/21/16 (2 )
Bank of America AUD   100 USD 75 09/21/16 (1 )
Bank of America AUD   200 USD 152 09/21/16 —  
Bank of America AUD   200 USD 150 09/21/16 (1 )
Bank of America AUD   200 USD 147 09/21/16 (5 )
Bank of America AUD   300 USD 228 09/21/16 —  
Bank of America CAD   100 USD 77 09/21/16 —  
Bank of America CAD   100 USD 76 09/21/16 (1 )
Bank of America CAD   100 USD 78 09/21/16 2  
Bank of America CAD   100 USD 78 09/21/16 1  
Bank of America CAD   100 USD 77 09/21/16 —  
Bank of America CAD   100 USD 77 09/21/16 1  
Bank of America EUR   12 USD 13 08/01/16 —  
Bank of America EUR   33 USD 37 08/01/16 —  
Bank of America EUR   36 USD 40 08/01/16 —  
Bank of America EUR   120 USD 133 08/01/16 (1 )
Bank of America EUR   11 USD 12 08/02/16 —  
Bank of America EUR   495 USD 552 08/02/16 (1 )
Bank of America EUR   100 USD 111 09/21/16 (1 )
Bank of America EUR   200 USD 221 09/21/16 (3 )
Bank of America EUR   300 USD 333 09/21/16 (4 )
Bank of America EUR   600 USD 684 09/21/16 12  
Bank of America EUR   1,000 USD 1,130 09/21/16 9  
Bank of America EUR   1,200 USD 1,332 09/21/16 (12 )
Bank of America GBP   10 USD 13 08/01/16 —  
Bank of America HKD   21 USD 3 08/01/16 —  
Bank of America HKD   789 USD 102 08/01/16 —  
Bank of America HKD   891 USD 115 08/01/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America HKD   1,000 USD 129 09/21/16 —  
Bank of America JPY   2,711 USD 26 08/01/16 (1 )
Bank of America JPY   5,468 USD 52 08/01/16 (2 )
Bank of America JPY   6,766 USD 64 08/01/16 (2 )
Bank of America JPY   4,799 USD 46 08/02/16 (1 )
Bank of America JPY   5,000 USD 47 09/21/16 (4 )
Bank of America JPY   10,000 USD 97 09/21/16 (1 )
Bank of America JPY   20,000 USD 186 09/21/16 (10 )
Bank of America JPY   20,000 USD 187 09/21/16 (9 )
Bank of America JPY   40,000 USD 378 09/21/16 (15 )
Bank of America SGD   100 USD 74 09/21/16 (1 )
Bank of America SGD   100 USD 73 09/21/16 (1 )
Bank of Montreal USD   225 AUD 300 09/21/16 3  
Bank of Montreal USD   154 CAD 200 09/21/16 —  
Bank of Montreal USD   1,104 EUR 1,000 09/21/16 16  
Bank of Montreal USD   258 HKD 2,000 09/21/16 —  
Bank of Montreal USD   472 JPY 50,000 09/21/16 18  
Bank of Montreal AUD   200 USD 151 09/21/16 (1 )
Bank of Montreal CAD   200 USD 153 09/21/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Real Estate Securities Fund 271

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of Montreal EUR 1,000 USD 1,108 09/21/16 (12 )
Bank of Montreal HKD 2,000 USD 258 09/21/16 —  
BNP Paribas USD 677 AUD 900 09/21/16 6  
BNP Paribas USD 705 AUD 949 09/21/16 16  
BNP Paribas USD 326 CAD 417 09/21/16 (7 )
BNP Paribas USD 350 CAD 450 09/21/16 (5 )
BNP Paribas USD 4,474 EUR 4,000 09/21/16 7  
BNP Paribas USD 5,084 EUR 4,459 09/21/16 (88 )
BNP Paribas USD 774 HKD 6,000 09/21/16 —  
BNP Paribas USD 850 HKD 6,590 09/21/16 —  
BNP Paribas USD 1,271 JPY 130,000 09/21/16 5  
BNP Paribas USD 1,479 JPY 158,280 09/21/16 75  
BNP Paribas USD 245 SGD 332 09/21/16 3  
BNP Paribas USD 297 SGD 400 09/21/16 1  
BNP Paribas AUD 3,100 USD 2,361 09/21/16 8  
BNP Paribas CAD 1,400 USD 1,086 09/21/16 13  
BNP Paribas EUR 14,000 USD 15,598 09/21/16 (87 )
BNP Paribas HKD 20,000 USD 2,581 09/21/16 1  
BNP Paribas JPY 450,000 USD 4,280 09/21/16 (139 )
BNP Paribas SGD 1,200 USD 893 09/21/16 (1 )
Commonwealth Bank of Australia AUD 100 USD 75 09/21/16 (1 )
Commonwealth Bank of Australia CAD 100 USD 77 09/21/16 —  
Commonwealth Bank of Australia CAD 100 USD 77 09/21/16 1  
Commonwealth Bank of Australia EUR 600 USD 669 09/21/16 (3 )
Commonwealth Bank of Australia EUR 700 USD 778 09/21/16 (6 )
Commonwealth Bank of Australia HKD 1,000 USD 129 09/21/16 —  
Commonwealth Bank of Australia HKD 1,000 USD 129 09/21/16 —  
National Australia Bank Limited USD 705 AUD 949 09/21/16 15  
National Australia Bank Limited USD 326 CAD 417 09/21/16 (7 )
National Australia Bank Limited USD 5,085 EUR 4,459 09/21/16 (88 )
National Australia Bank Limited USD 850 HKD 6,590 09/21/16 —  
National Australia Bank Limited USD 1,480 JPY 158,280 09/21/16 74  
National Australia Bank Limited USD 245 SGD 332 09/21/16 3  
Royal Bank of Canada AUD 600 USD 445 09/21/16 (10 )
Royal Bank of Canada CAD 200 USD 154 09/21/16 1  
Royal Bank of Canada EUR 1,000 USD 1,115 09/21/16 (5 )
Royal Bank of Canada HKD 3,000 USD 387 09/21/16 —  
Royal Bank of Canada JPY 100,000 USD 975 09/21/16 (7 )
Royal Bank of Canada SGD 200 USD 148 09/21/16 (1 )
Societe Generale AUD 200 USD 148 09/21/16 (4 )
Societe Generale CAD 100 USD 77 09/21/16 1  
Societe Generale EUR 300 USD 339 09/21/16 3  
Societe Generale HKD 1,000 USD 129 09/21/16 —  
Societe Generale JPY 30,000 USD 284 09/21/16 (11 )
State Street USD 223 AUD 300 09/21/16 5  
State Street USD 1,522 AUD 2,000 09/21/16 (5 )
State Street USD 156 CAD 200 09/21/16 (3 )
State Street USD 614 CAD 800 09/21/16 (1 )
State Street USD 2,269 EUR 2,000 09/21/16 (28 )
State Street USD 8,874 EUR 8,000 09/21/16 90  
State Street USD 314 HKD 2,437 08/01/16 —  
State Street USD 190 HKD 1,474 08/02/16 —  
State Street USD 387 HKD 3,000 09/21/16 —  
State Street USD 1,419 HKD 11,000 09/21/16 (1 )
State Street USD 80 JPY 8,451 08/01/16 3  
State Street USD 51 JPY 5,386 08/02/16 2  
State Street USD 20 JPY 2,060 08/03/16 —  
State Street USD 32 JPY 3,278 08/03/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

272 Russell Global Real Estate Securities Fund

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                  
                Unrealized  
                Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
State Street USD 48 JPY 4,874 08/03/16 —  
State Street USD 483 JPY 50,000 09/21/16 8  
State Street USD 2,390 JPY 250,000 09/21/16 66  
State Street USD 74 SGD 100 09/21/16 —  
State Street USD 445 SGD 600 09/21/16 2  
State Street CAD 5 USD 4 08/02/16 —  
State Street EUR 15 USD 17 08/01/16 —  
State Street EUR 20 USD 22 08/01/16 —  
State Street EUR 300 USD 340 09/21/16 4  
State Street EUR 600 USD 670 09/21/16 (3 )
State Street EUR 1,000 USD 1,129 09/21/16 9  
State Street GBP 62 USD 82 08/01/16 —  
State Street HKD 1,236 USD 159 08/01/16 —  
State Street HKD 776 USD 100 08/02/16 —  
State Street HKD 1,000 USD 129 09/21/16 —  
State Street HKD 1,000 USD 129 09/21/16 —  
State Street JPY 8,641 USD 82 08/01/16 (3 )
State Street JPY 5,544 USD 53 08/02/16 (2 )
State Street JPY 2,201 USD 22 08/03/16 —  
State Street JPY 10,493 USD 103 08/03/16 —  
State Street JPY 20,000 USD 196 09/21/16 (1 )
State Street JPY 20,000 USD 192 09/21/16 (5 )
UBS CAD 100 USD 79 09/21/16 2  
UBS EUR 500 USD 568 09/21/16 9  
UBS HKD 1,000 USD 129 09/21/16 —  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts           (30 )

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Australia $ — $ 79,111 $ — $ — $   79,111
Austria   —   6,728   —   —     6,728
Brazil   54   —   —   —     54
Canada   33,487   —   —   —     33,487
China   —   120   —   —     120
Finland   —   1,719   —   —     1,719
France   6,751   38,595   —   —     45,346
Germany   —   37,499   —   —     37,499
Hong Kong   —   127,681   —   —     127,681
Ireland   —   4,564   —   —     4,564
Italy   —   597   —   —     597
Japan   —   152,914   —   —     152,914
Netherlands   —   9,436   —   —     9,436
Norway   —   1,614   —   —     1,614
Singapore   98   19,741   —   —     19,839
Spain   —   10,900   —   —     10,900
Sweden   —   9,583   —   —     9,583
Switzerland   —   6,784   —   —     6,784

 

See accompanying notes which are an integral part of this quarterly report.

Russell Global Real Estate Securities Fund 273

 

Russell Investment Company
Russell Global Real Estate Securities Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                  Practical      
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
United Kingdom   —     76,923     —   —   76,923  
United States   713,593     —     —   —   713,593  
Short-Term Investments —   —   — 35,244 35,244  
Other Securities —   —   — 15,114 15,114  
Total Investments 753,983   584,509   — 50,358 1,388,850  
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 985   —   — — 985  
Foreign Currency Exchange Contracts 16   709   — — 725  
Liabilities                          
Futures Contracts (44 ) —   — — (44 )
Foreign Currency Exchange Contracts (16 ) (739 ) — — (755 )
Total Other Financial Instruments* $ 941   $ (30 ) $ — $ — $ 911  

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.

Amounts in thousands      
  Fair Value  
Property Sector Exposure   $  
Diversified 381,803
Healthcare 84,759
Industrial 62,016
Lodging/Resorts 55,293
Office 167,752
Office Mixed 8,673
Residential 194,917
Retail 335,349
Self Storage 35,246
Specialized REITs 12,684
Short-Term Investments 35,244
Other Securities 15,114
Total Investments 1,388,850

 

See accompanying notes which are an integral part of this quarterly report.

274 Russell Global Real Estate Securities Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Long-Term Investments - 52.3%       Series WI      
Asset-Backed Securities - 0.1%       4.450% due 04/01/24 55 61
CLI Funding V LLC       5.150% due 03/15/42 15 17
Series 2014-2A       Aviation Capital Group Corp.      
3.380% due 10/18/29 (Þ) 115 112 4.875% due 10/01/25 (Þ) 84 88
Credit Acceptance Auto Loan Trust       Avis Budget Car Rental LLC / Avis      
Series 2015-1A       Budget Finance, Inc.      
2.000% due 07/15/22 (Þ) 250 250 6.375% due 04/01/24 (Å) 22 22
      362 Avnet, Inc.      
Corporate Bonds and Notes - 18.4%     4.625% due 04/15/26 140 146
99 Cents Only Stores LLC       BAE Systems Holdings, Inc.      
11.000% due 12/15/19 930 505 3.850% due 12/15/25 (Þ) 110 118
AbbVie, Inc.       Baltimore Gas & Electric Co.      
2.900% due 11/06/22 285 295 3.350% due 07/01/23 75 80
Acadia Healthcare Co., Inc.       Bank of America Corp.      
Series WI       Series DD      
6.500% due 03/01/24 1,030 1,064 6.300% due 12/29/49 (ƒ) 350 381
Aetna, Inc.       Series L      
2.400% due 06/15/21 90 92 3.950% due 04/21/25 305 316
3.200% due 06/15/26 115 118 Series Z      
4.375% due 06/15/46 30 31 6.500% due 12/31/49 (ƒ) 925 1,010
Air Lease Corp.       Becton Dickinson and Co.      
3.375% due 06/01/21 60 62 2.675% due 12/15/19 40 41
3.750% due 02/01/22 35 36 3.734% due 12/15/24 75 82
4.250% due 09/15/24 20 21 Blue Coat Holdings, Inc.      
Aircastle, Ltd.       8.375% due 06/01/23 (Å) 250 281
5.500% due 02/15/22 65 70 Brixmor Operating Partnership, LP      
Albertsons Cos. LLC / Safeway, Inc. /       3.875% due 08/15/22 115 119
New Albertson's, Inc / Albertson's       Celgene Corp.      
LLC       2.875% due 08/15/20 75 78
6.625% due 06/15/24 (Þ) 25 27 3.550% due 08/15/22 80 86
Ally Financial, Inc.       5.000% due 08/15/45 130 151
3.750% due 11/18/19 225 229 Century Aluminum Co.      
4.125% due 03/30/20 5 5 7.500% due 06/01/21 (Þ) 5,406 5,001
4.250% due 04/15/21 15 15 CF Industries, Inc.      
4.125% due 02/13/22 120 122 3.450% due 06/01/23 15 15
Altria Group, Inc.       Cheniere Corpus Christi Holdings LLC      
2.850% due 08/09/22 200 211 7.000% due 06/30/24 (Þ) 1,870 1,954
American Airlines Pass-Through Trust       Chesapeake Energy Corp.      
Series B       4.875% due 04/15/22 95 60
5.250% due 01/15/24 100 104 Cigna Corp.      
American International Group, Inc.       3.250% due 04/15/25 55 57
4.875% due 06/01/22 55 62 CIT Group, Inc.      
4.800% due 07/10/45 75 79 5.250% due 03/15/18 160 166
American Tire Distributors, Inc.       Citigroup, Inc.      
10.250% due 03/01/22 (Þ) 2,600 2,389 4.000% due 08/05/24 150 157
Anadarko Petroleum Corp.       Series R      
5.550% due 03/15/26 140 153 6.125% due 12/31/49 (ƒ) 249 259
Ancestry.com Holdings LLC       Series T      
9.625% due 10/15/18 (Þ) 4,580 4,672 6.250% due 12/29/49 (ƒ) 650 700
Anheuser-Busch InBev Finance, Inc.       Clear Channel Worldwide Holdings, Inc.      
2.650% due 02/01/21 190 197 Series A      
3.650% due 02/01/26 165 177 6.500% due 11/15/22 2,720 2,707
4.700% due 02/01/36 30 35 Series B      
4.900% due 02/01/46 140 170 7.625% due 03/15/20 3,370 3,336
Anthem, Inc.       Cleaver-Brooks, Inc.      
4.650% due 08/15/44 45 50 8.750% due 12/15/19 (Þ) 1,130 1,164
Arrow Electronics, Inc.       Cloud Crane LLC      
3.500% due 04/01/22 75 76 10.125% due 08/01/24 (Å) 630 649
AT&T, Inc.       CoBank ACB      
4.125% due 02/17/26 175 191 Series I      
4.300% due 12/15/42 150 149 6.250% due 12/29/49 (ƒ) 580 628
4.800% due 06/15/44 5 5 Comcast Corp.      
4.350% due 06/15/45 180 180 4.200% due 08/15/34 90 100
        Constellation Brands, Inc.      
        3.875% due 11/15/19 40 42

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 275

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)  
  Principal   Fair       Principal Fair
  Amount ($)   Value       Amount ($) Value
  or Shares   $       or Shares $
Constellis Holdings LLC / Constellis         4.550% due 04/01/46 110 124
Finance Corp.         First Cash Financial Services, Inc.      
9.750% due 05/15/20 (Å) 500   488 6.750% due 04/01/21 500 515
Continental Resources, Inc.         First Data Corp.      
5.000% due 09/15/22 450   421 7.000% due 12/01/23 (Þ) 2,510 2,582
4.500% due 04/15/23 460   416 Ford Motor Credit Co. LLC      
3.800% due 06/01/24 805   688 4.250% due 09/20/22 400 434
CRH America, Inc.         4.134% due 08/04/25 400 428
3.875% due 05/18/25 (Þ) 400   432 Foresight Energy LLC / Foresight Energy      
Crown Castle International Corp.         Finance Corp.      
3.400% due 02/15/21 65   68 7.875% due 08/15/21 (Å) 2,510 1,770
3.700% due 06/15/26 55   58 Forum Energy Technologies, Inc.      
CVS Health Corp.         6.250% due 10/01/21 1,770 1,651
4.125% due 05/15/21 115   127 Freeport-McMoRan, Inc.      
2.125% due 06/01/21 140   143 5.400% due 11/14/34 5 4
2.875% due 06/01/26 140   144 5.450% due 03/15/43 55 42
5.125% due 07/20/45 115   146 Frontier Communications Corp.      
Daimler Finance NA LLC         6.875% due 01/15/25 300 263
2.700% due 08/03/20 (Þ) 300   312 FullBeauty Brands Holdings Corp. 1st      
DDR Corp.         Lien Term Loan B      
3.375% due 05/15/23 30   30 6.993% due 10/14/22 (Ê) 623 589
3.625% due 02/01/25 175   178 GATX Corp.      
Delphi Corp.         3.250% due 03/30/25 90 88
4.150% due 03/15/24 50   54 General Electric Co.      
Delta Air Lines  Pass-Through Trust         5.875% due 01/14/38 150 206
Series 15-1 Class B         4.125% due 10/09/42 160 181
4.250% due 07/30/23 87   90 Series D      
Devon Energy Corp.         5.000% due 12/29/49 (ƒ) 1,131 1,219
3.250% due 05/15/22 25   24 General Motors Co.      
5.850% due 12/15/25 50   55 5.200% due 04/01/45 75 80
Diamond 1 Finance Corp. / Diamond 2         General Motors Financial Co., Inc.      
Finance Corp         4.000% due 01/15/25 200 206
5.875% due 06/15/21 (Å) 72   75 Gilead Sciences, Inc.      
7.125% due 06/15/24 (Å) 51   55 4.500% due 02/01/45 50 56
Diamond Offshore Drilling, Inc.         4.750% due 03/01/46 40 47
4.875% due 11/01/43 25   19 Goldman Sachs Group, Inc. (The)      
Dresdner Funding Trust I         3.850% due 07/08/24 165 177
8.151% due 06/30/31 (Å) 300   354 Series GMTN      
Duke Energy Carolinas LLC         5.375% due 03/15/20 135 151
4.000% due 09/30/42 40   44 Series L      
Eaton Corp.         5.700% due 12/31/49 (ƒ) 75 76
4.000% due 11/02/32 75   81 Halyard Health, Inc.      
Embarq Corp.         Series WI      
7.995% due 06/01/36 250   260 6.250% due 10/15/22 1,340 1,347
EMI Music Publishing Group Holdings,         Harland Clarke Holdings Corp.      
Inc.         6.875% due 03/01/20 (Å) 25 24
7.625% due 06/15/24 (Þ) 70   75 HCA, Inc.      
Energy Transfer Partners, LP         4.750% due 05/01/23 5 5
4.900% due 02/01/24 185   191 5.375% due 02/01/25 165 172
5.150% due 03/15/45 75   70 Hewlett Packard Enterprise Co.      
6.125% due 12/15/45 40   42 4.900% due 10/15/25 (Þ) 25 27
Enterprise Products Operating LLC         6.200% due 10/15/35 (Þ) 30 31
1.650% due 05/07/18 75   75 6.350% due 10/15/45 (Þ) 65 65
ERAC USA Finance LLC         Hologic, Inc.      
2.800% due 11/01/18 (Þ) 115   118 5.250% due 07/15/22 (Þ) 55 58
3.800% due 11/01/25 (Þ) 250   268 Home Depot, Inc. (The)      
4.500% due 02/15/45 (Þ) 75   82 2.625% due 06/01/22 225 237
Essex Portfolio, LP         Host Hotels & Resorts, LP      
3.250% due 05/01/23 150   155 Series C      
Express Scripts Holding Co.         4.750% due 03/01/23 140 151
Series 10YR         Series D      
4.500% due 02/25/26 260   289 3.750% due 10/15/23 125 127
Extraction Oil & Gas Holdings LLC /         HRG Group, Inc.      
Extraction Finance Corp.         7.750% due 01/15/22 6,030 6,151
7.875% due 07/15/21 (Å) 230   230 HSBC USA, Inc.      
FedEx Corp.         2.750% due 08/07/20 230 234

 

See accompanying notes which are an integral part of this quarterly report.

276 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Series BKNT       Series C      
5.875% due 11/01/34 500 619 5.250% due 12/29/49 (ƒ) 301 301
HUB International, Ltd.       Micron Technology, Inc.      
9.250% due 02/15/21 (Þ) 1,470 1,551 5.250% due 01/15/24 (Þ) 90 81
Hyundai Capital America       Morgan Stanley      
3.000% due 10/30/20 (Þ) 90 94 3.950% due 04/23/27 50 51
Series REGS       Series GMTN      
2.600% due 03/19/20 190 194 5.500% due 07/28/21 185 212
International Wire Group, Inc.       MPH Acquisition Holdings LLC      
10.750% due 08/01/21 (Å) 670 645 7.125% due 06/01/24 (Þ) 1,550 1,654
INVISTA Finance LLC       MPLX, LP      
4.250% due 10/15/19 (Þ) 100 99 4.500% due 07/15/23 (Þ) 15 15
Iron Mountain US Holdings, Inc.       4.875% due 12/01/24 (Þ) 5 5
5.375% due 06/01/26 (Å) 101 102 4.875% due 06/01/25 (Þ) 30 30
Iron Mountain, Inc.       Nathan's Famous, Inc.      
4.375% due 06/01/21 (Å) 101 105 10.000% due 03/15/20 (Þ) 540 580
Jill Acquisition LLC       National Rural Utilities Cooperative      
1.000% due 05/23/22 (Ê) 520 509 Finance Corp.      
Jo-Ann Stores LLC       5.250% due 04/20/46 286 302
8.125% due 03/15/19 (Þ) 240 234 Nationwide Financial Services, Inc.      
Joseph T Ryerson & Son, Inc.       5.375% due 03/25/21 (Þ) 172 192
11.000% due 05/15/22 (Þ) 680 741 Newfield Exploration Co.      
JPMorgan Chase & Co.       5.625% due 07/01/24 25 25
3.200% due 01/25/23 80 84 5.375% due 01/01/26 70 67
Series 1       NextEra Energy Capital Holdings, Inc.      
7.900% due 04/29/49 (ƒ) 1,150 1,196 2.400% due 09/15/19 175 178
Series S       Noble Energy, Inc.      
6.750% due 01/29/49 (ƒ) 750 844 5.250% due 11/15/43 135 137
Series Z       Northrop Grumman Corp.      
5.300% due 12/29/49 (ƒ) 40 41 3.850% due 04/15/45 75 81
Kimco Realty Corp.       Oasis Petroleum, Inc.      
3.200% due 05/01/21 220 229 6.875% due 03/15/22 170 148
4.250% due 04/01/45 190 204 Omega Healthcare Investors, Inc.      
Kinder Morgan, Inc.       4.375% due 08/01/23 115 116
5.050% due 02/15/46 210 198 Opal Acquisition, Inc.      
Kraft Heinz Foods Co.       8.875% due 12/15/21 (Þ) 3,850 3,119
3.000% due 06/01/26 (Þ) 225 230 Optimas OE Solutions Holding LLC /      
4.375% due 06/01/46 (Þ) 65 71 Optimas OE Solutions, Inc.      
Liberty Mutual Group, Inc.       8.625% due 06/01/21 (Þ) 1,100 832
4.250% due 06/15/23 (Þ) 90 96 Pioneer Natural Resources Co.      
7.800% due 03/15/37 (Þ) 720 801 3.950% due 07/15/22 40 42
4.850% due 08/01/44 (Þ) 90 95 4.450% due 01/15/26 10 11
Lockheed Martin Corp.       PNC Financial Services Group, Inc.      
3.800% due 03/01/45 50 53 (The)      
4.700% due 05/15/46 70 85 6.750% due 12/31/49 (ƒ) 350 393
Marriott International, Inc.       Principal Financial Group, Inc.      
2.300% due 01/15/22 220 222 3.400% due 05/15/25 75 77
Masco Corp.       Prudential Financial, Inc.      
4.450% due 04/01/25 5 5 5.875% due 09/15/42 174 193
Match Group, Inc.       5.625% due 06/15/43 1,162 1,244
6.375% due 06/01/24 (Å) 152 162 Qualitytech, LP / QTS Finance Corp.      
McKesson Corp.       Series WI      
4.883% due 03/15/44 55 65 5.875% due 08/01/22 90 92
Medtronic, Inc.       Quicken Loans, Inc.      
Series WI       5.750% due 05/01/25 (Þ) 75 74
3.500% due 03/15/25 235 257 Radio One, Inc.      
Merck & Co., Inc.       7.375% due 04/15/22 (Å) 25 25
2.350% due 02/10/22 305 315 Real Alloy Holding, Inc.      
MetLife Capital Trust IV       10.000% due 01/15/19 (Þ) 1,000 1,005
7.875% due 12/15/37 (Þ) 675 837 RegionalCare Hospital Partners      
        Holdings, Inc.      
MetLife Capital Trust X       8.250% due 05/01/23 (Þ) 3,120 3,249
9.250% due 04/08/38 (Þ) 500 714 Sabine Pass Liquefaction LLC      
MetLife, Inc.       Series WI      
10.750% due 08/01/39 50 80 5.625% due 03/01/25 1,020 1,041
4.125% due 08/13/42 50 51 Santander Holdings USA, Inc.      

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 277

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
4.500% due 07/17/25 135 140 5.150% due 09/15/23 90 105
Sempra Energy       5.050% due 03/15/34 115 130
3.750% due 11/15/25 75 81 4.750% due 11/01/41 20 22
Serta Simmons Bedding LLC       3.850% due 11/01/42 160 156
8.125% due 10/01/20 (Þ) 1,840 1,923 Series WI      
SESI LLC       2.625% due 02/21/20 165 171
7.125% due 12/15/21 200 194 4.272% due 01/15/36 55 58
Shale-Inland Holdings LLC / Shale-       Viacom, Inc.      
Inland Finance Corp.       4.375% due 03/15/43 75 65
8.750% due 11/15/19 (Þ) 210 143 Virginia Electric & Power Co.      
Simmons Foods, Inc.       4.450% due 02/15/44 65 77
7.875% due 10/01/21 (Þ) 1,500 1,384 Visa, Inc.      
Solera LLC / Solera Finance, Inc.       3.150% due 12/14/25 75 81
10.500% due 03/01/24 (Å) 200 216 Vizient, Inc.      
Southwestern Electric Power Co.       10.375% due 03/01/24 (Þ) 3,890 4,386
3.550% due 02/15/22 150 161 Voya Financial, Inc.      
Spirit Airlines Pass-Through Trust       5.650% due 05/15/53 350 338
Series 2015-1       Wayne Merger Sub LLC      
4.450% due 04/01/24 102 103 8.250% due 08/01/23 (Å) 2,690 2,680
Sprint Communications, Inc.       Wells Fargo & Co.      
8.375% due 08/15/17 1,280 1,326 Series K      
State Street Corp.       7.980% due 03/29/49 (ƒ) 660 700
Series F       Series U      
5.250% due 12/29/49 (ƒ) 200 210 5.875% due 12/31/49 (ƒ) 500 551
Sterigenics-Nordion Holdings LLC       Welltower, Inc.      
4.250% due 05/15/22 (Ê) 496 494 4.000% due 06/01/25 175 187
Summit Midstream Holdings LLC /       Whiting Petroleum Corp.      
Summit Midstream Finance Corp.       5.750% due 03/15/21 140 117
5.500% due 08/15/22 2,230 2,057 Wisconsin Power & Light Co.      
Surgery Center Holdings, Inc.       4.100% due 10/15/44 140 157
8.875% due 04/15/21 (Þ) 2,870 3,057 WMG Acquisition Corp.      
Targa Resources Partners, LP / Targa       6.750% due 04/15/22 (Þ) 2,580 2,709
Resources Partners Finance Corp.       Worthington Industries, Inc.      
5.000% due 01/15/18 40 40 4.550% due 04/15/26 40 42
Tenet Healthcare Corp.       Xerium Technologies, Inc.      
4.500% due 04/01/21 150 150 9.500% due 08/15/21 (Å) 810 806
4.375% due 10/01/21 30 30 XPO Logistics, Inc.      
Series WI       6.500% due 06/15/22 (Å) 1,350 1,337
6.750% due 06/15/23 3,660 3,523 Zayo Group LLC / Zayo Capital, Inc.      
TerraForm AP Acquisition Holdings LLC         Series WI      
1.000% due 06/26/22 (Ê) 404 394 6.000% due 04/01/23 1,860 1,934
Time Warner Cable, Inc.       Zimmer Biomet Holdings, Inc.      
4.500% due 09/15/42 210 204 3.550% due 04/01/25 225 236
Time Warner, Inc.              
4.875% due 03/15/20 65 72       120,395
4.850% due 07/15/45 135 156 International Debt - 9.2%      
Trans-Allegheny Interstate Line Co.       Actavis Funding SCS      
3.850% due 06/01/25 (Þ) 65 70 3.800% due 03/15/25 30 32
TransDigm, Inc.       Albemarle Corp.      
5.500% due 10/15/20 1,620 1,660 1.875% due 12/08/21 200 237
6.375% due 06/15/26 (Þ) 100 103 Angolan Government International Bond      
Travelers Cos., Inc. (The)       9.500% due 11/12/25 (Þ) 73 70
4.600% due 08/01/43 30 37 Aquarius & Investments PLC for Swiss      
United Airlines Pass-Through Trust       Reinsurance Co., Ltd.      
        8.250% due 09/29/49 (ƒ) 450 484
Series B       Argentine Republic Government      
5.375% due 08/15/21 78 81  International Bond      
4.625% due 09/03/22 76 76 6.875% due 04/22/21 (Þ) 60 65
United Continental Holdings, Inc.       7.500% due 04/22/26 (Þ) 140 152
6.375% due 06/01/18 65 68 7.625% due 04/22/46 (Þ) 65 69
UnitedHealth Group, Inc.              
2.700% due 07/15/20 135 141 3.750% Series NY due 03/31/19 370 251
4.750% due 07/15/45 75 94 8.280% due 12/31/33 387 434
US Bancorp       Australia & New Zealand Banking      
Series I       Group, Ltd. - ADR      
5.125% due 12/29/49 (ƒ) 22 23 6.750% due 12/31/49 (Å)(ƒ) 400 435
Verizon Communications, Inc.       AXA SA      

 

See accompanying notes which are an integral part of this quarterly report.

278 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
6.463% due 12/14/18 (ƒ)(Þ) 250 262 Croatia Government International Bond      
8.600% due 12/15/30 350 492 Series REGS      
Baidu, Inc.       6.625% due 07/14/20 80 88
3.250% due 08/06/18 400 410 5.500% due 04/04/23 200 215
Banco Bilbao Vizcaya Argentaria SA       Dai-ichi Life Insurance Co., Ltd. (The)      
9.000% due 05/29/49 (ƒ) 200 207 7.250% due 12/29/49 (ƒ)(Þ) 400 475
Banco Nacional de Costa Rica       4.000% due 12/31/49 (ƒ)(Þ) 200 203
5.875% due 04/25/21 (Þ) 50 52 Delphi Automotive PLC      
Bank of America Corp.       3.150% due 11/19/20 25 26
4.625% due 09/14/18 225 273 4.250% due 01/15/26 100 110
Barclays PLC       Delta 2 Lux Sarl 2nd Lien Term Loan B      
4.375% due 09/11/24 400 403 7.750% due 07/29/22 (Ê) 500 490
8.250% due 12/31/49 (ƒ) 400 407 Delta 2 Lux Sarl Term Loan B3      
Belize Government International Bond       4.750% due 07/30/21 (Ê) 2,500 2,470
Series REGS       Demeter (Swiss Re, Ltd.)      
6.767% due 08/20/17 75 42 5.625% due 08/15/52 350 371
Benefit Street Partners CLO III, Ltd.       Dominican Republic Government      
Series 2013-IIIA Class D       International Bond      
5.124% due 01/20/26 (Å)(Ê) 500 434 Series REGS      
Benefit Street Partners CLO IX, Ltd.       6.850% due 01/27/45 200 215
Series 2016-9A Class E       Dominican Republic International Bond      
7.470% due 07/20/28 (Å)(Ê) 500 436 6.875% due 01/29/26 (Þ) 540 606
BGEO Group JSC       Series REGS      
6.000% due 07/26/23 (Þ) 125 126 7.500% due 05/06/21 45 51
BHP Billiton Finance USA, Ltd.       7.450% due 04/30/44 165 188
6.250% due 10/19/75 (Å) 400 433 Ecopetrol SA      
6.750% due 10/19/75 (Þ) 1,000 1,113 4.125% due 01/16/25 100 93
BNP Paribas SA       Ecuador Government International Bond      
7.625% due 12/29/49 (ƒ)(Þ) 400 416 10.750% due 03/28/22 (Þ) 220 219
7.195% due 12/31/49 (Å)(ƒ) 200 221 Series REGS      
BorgWarner, Inc.       7.950% due 06/20/24 280 243
1.800% due 11/07/22 215 256 EDP Finance BV      
Burger King       4.900% due 10/01/19 (Þ) 200 214
3.750% due 12/12/21 (Ê) 1,956 1,964 Egypt Government International Bond      
Citigroup, Inc.       Series REGS      
1.375% due 10/27/21 230 270 5.750% due 04/29/20 140 143
4.090% due 06/09/25 (Þ) 100 79 El Salvador Government International      
Cloverie PLC for Zurich Insurance Co.,       Bond      
Ltd.       Series REGS      
4.750% due 12/29/49 (ƒ) 500 508 7.375% due 12/01/19 65 70
Colombia Government International       7.750% due 01/24/23 20 22
Bond       5.875% due 01/30/25 70 69
4.375% due 07/12/21 70 75 Embraer Netherlands Finance BV      
2.625% due 03/15/23 400 387 5.050% due 06/15/25 125 125
4.000% due 02/26/24 50 52 Emera, Inc.      
4.500% due 01/28/26 365 390 Series 16-A      
7.375% due 09/18/37 90 116 6.750% due 06/15/76 1,212 1,310
ConvaTec Finance International SA       Emirates Telecommunications Group      
8.250% due 01/15/19 (Þ) 1,520 1,528 Co. PJSC      
ConvaTec Healthcare E SA       Series GMTN      
10.500% due 12/15/18 (Þ) 490 503 2.375% due 06/18/19 400 405
Cooperatieve Rabobank UA       Enel SpA      
11.000% due 06/29/49 (ƒ)(Þ) 875 1,070 8.750% due 09/24/73 (Þ) 600 695
Corp. Financiera de Desarrollo SA       Evergreen Skills Lux Sarl      
Series REGS       9.250% due 04/28/22 (Ê) 550 285
4.750% due 07/15/25 35 38 FedEx Corp.      
Costa Rica Government International       1.625% due 01/11/27 225 264
Bond       Flextronics International, Ltd.      
Series REGS       Series WI      
4.375% due 04/30/25 180 173 4.750% due 06/15/25 20 21
Credit Agricole SA       Ghana Government International Bond      
8.125% due 12/31/49 (ƒ)(Þ) 400 421 Series REGS      
Series REGS       7.875% due 08/07/23 70 61
4.375% due 03/17/25 400 408 8.125% due 01/18/26 720 623
Credit Suisse Group AG       Global SC Finance II SRL      
7.500% due 12/31/49 (Å)(ƒ) 200 207        

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 279

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
  Principal Fair     Principal Fair  
  Amount ($) Value     Amount ($) Value  
  or Shares $     or Shares $  
Series 2014-1A         Series REGS        
3.190% due 07/17/29 (Þ) 200   192 10.875% due 04/06/21 10   11
HSBC Capital Funding, LP         5.125% due 12/05/22 30   27
10.176% due 12/29/49 (Å)(ƒ) 400   588 Mood Media Corp. 1st Lien Term Loan B        
HSBC Holdings PLC         7.000% due 05/01/19 (Ê) 124   113
6.875% due 12/31/49 (ƒ) 400   412 Moody's Corp.        
ICICI Bank, Ltd./Hong Kong         1.750% due 03/09/27 200   237
Series REGS         Morgan Stanley        
5.750% due 11/16/20 200   224 1.875% due 03/30/23 200   239
Indonesia Government International         Namibia International Bonds        
Bond         5.250% due 10/29/25 (Þ) 30   31
Series REGS         Nippon Life Insurance Co.        
4.125% due 01/15/25 390   413 4.700% due 01/20/46 (Þ) 700   759
4.750% due 01/08/26 300   334 Noble Holding International, Ltd.        
7.750% due 01/17/38 90   129 6.200% due 08/01/40 5   3
5.125% due 01/15/45 170   191 6.050% due 03/01/41 5   3
International Automotive Components         5.250% due 03/15/42 5   3
Group SA         OCP SA        
9.125% due 06/01/18 (Å) 62   61 Series REGS        
Iraq International Bond         5.625% due 04/25/24 400   434
Series REGS         Oman Government International Bond        
5.800% due 01/15/28 50   37 3.625% due 06/15/21 (Þ) 60   61
Itau Unibanco Holding SA/Cayman         Ooredoo International Finance, Ltd.        
Island         3.750% due 06/22/26 (Þ) 50   51
2.850% due 05/26/18 (Þ) 200   200          
Ivory Coast Government International         Series REGS        
          5.000% due 10/19/25 400   453
Bond         Panama Government International Bond        
Series REGS                  
5.750% due 12/31/32 881   842 4.000% due 09/22/24 150   162
Jamaica Government International Bond         3.750% due 03/16/25 75   80
8.000% due 06/24/19 85   92 8.875% due 09/30/27 73   108
8.500% due 02/28/36 100   120 3.875% due 03/17/28 110   118
Jordan Government International Bond         9.375% due 04/01/29 190   293
6.125% due 01/29/26 (Þ) 15   16 6.700% due 01/26/36 59   80
 JPMorgan Chase & Co.         Paraguay Government International        
 
 1.500% due 01/27/25 275   327 Bond        
Kazakhstan Government International         5.000% due 04/15/26 (Þ) 70   75
          Series REGS        
Bond         4.625% due 01/25/23 220   230
Series REGS                  
3.875% due 10/14/24 140   142 6.100% due 08/11/44 245   274
          Parq Holdings, LP Term Loan        
KazMunayGas National Co. JSC         8.500% due 12/17/20 (Ê) 820   787
Series REGS                  
9.125% due 07/02/18 200   220 Pernod Ricard SA        
Kenya Government International Bond         5.500% due 01/15/42 (Þ) 300   373
Series REGS         Pertamina Persero PT        
6.875% due 06/24/24 50   47 Series REGS        
Koninklijke Ahold Delhaize NV         4.875% due 05/03/22 108   115
5.700% due 10/01/40 100   123 4.300% due 05/20/23 345   355
Linxens France SA 2nd Lien Term Loan         6.000% due 05/03/42 140   151
9.500% due 07/15/23 310   310 5.625% due 05/20/43 150   155
 Lloyds Bank PLC         Perusahaan Penerbit SBSN Indonesia III        
 
2.350% due 09/05/19 400   405 4.550% due 03/29/26 (Þ) 80   86
 Lloyds Banking Group PLC         Peruvian Government International Bond        
 
 4.500% due 11/04/24 400   415 8.750% due 11/21/33 55   87
7.500% due 12/31/49 (ƒ) 400   399 Petrobras Global Finance BV        
Mallinckrodt International Finance SA /         3.536% due 03/17/20 (Ê) 195   180
Mallinckrodt CB LLC         8.375% due 05/23/21 805   851
5.625% due 10/15/23 (Å) 28   27 Petroleos de Venezuela SA        
Methanex Corp.         5.375% due 04/12/27 81   30
3.250% due 12/15/19 40   39 Series REGS        
Mexico Government International Bond         8.500% due 11/02/17 137   106
4.750% due 03/08/44 326   349 9.000% due 11/17/21 37   18
4.600% due 01/23/46 25   26 12.750% due 02/17/22 235   128
Mohawk Industries, Inc.         6.000% due 05/16/24 125   47
2.000% due 01/14/22 235   278 6.000% due 11/15/26 80   29
Mongolia Government International         9.750% due 05/17/35 245   108
Bond         Petroleos Mexicanos        

 

See accompanying notes which are an integral part of this quarterly report.

280 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
8.000% due 05/03/19 59 66 Sri Lanka Government International      
5.500% due 06/27/44 35 32 Bond      
6.375% due 01/23/45 157 157 5.750% due 01/18/22 (Þ) 360 372
Series REGS       6.850% due 11/03/25 (Þ) 130 137
6.375% due 02/04/21 325 356 Series REGS      
6.875% due 08/04/26 25 28 5.875% due 07/25/22 60 62
Series WI       Standard Chartered PLC      
5.625% due 01/23/46 14 13 3.950% due 01/11/23 (Þ) 200 201
Philip Morris International, Inc.       Sumitomo Life Insurance Co.      
1.750% due 03/19/20 240 285 6.500% due 09/20/73 (Þ) 200 234
Playa Resorts Holding BV 1st Lien Term       Sydney Airport Finance Co. Pty, Ltd.      
Loan B       3.625% due 04/28/26 (Þ) 190 199
4.000% due 08/09/19 (Ê) 994 989 Tanzania Government International Bond      
Prologis, LP       Series REGS      
3.000% due 06/02/26 305 401 6.892% due 03/09/20 (Ê) 13 14
QBE Insurance Group, Ltd.       Teine Energy, Ltd.      
6.750% due 12/02/44 700 769 6.875% due 09/30/22 (Þ) 230 228
Regatta V Funding, Ltd.       Telecom Italia Capital SA      
Series 2014-1A Class D       6.000% due 09/30/34 65 64
5.519% due 10/25/26 (Å)(Ê) 250 211 Telefonica Emisiones SAU      
Republic of Angola Government Bond       5.462% due 02/16/21 135 155
Series REGS       7.045% due 06/20/36 15 20
9.500% due 11/12/25 200 191 Telstra Corp., Ltd.      
Republic of Argentina Government       3.125% due 04/07/25 (Þ) 15 16
International Bond       Teva Pharmaceutical Finance      
Series REGS       Netherlands III BV      
7.500% due 04/22/26 1,325 1,439 2.800% due 07/21/23 120 122
Republic of Azerbaijan Government       TIAA CLO I, Ltd.      
International Bond       Series 2016-1A Class E1      
Series REGS       8.736% due 07/20/28 (Å)(Ê) 279 251
4.750% due 03/18/24 200 202 Transcanada Trust      
Republic of Azerbaijan International       5.625% due 05/20/75 175 169
Bond       Transelec SA      
Series REGS       3.875% due 01/12/29 (Å) 40 40
4.750% due 03/18/24 50 51 Travelport Finance Luxembourg Sarl      
Republic of Kazakhstan Government       Term Loan B      
International Bond       1.000% due 09/02/21 (Ê)(v) 1,250 1,251
Series REGS       Turkey Government International Bond      
6.500% due 07/21/45 200 236 7.375% due 02/05/25 100 119
Royal Bank of Scotland Group PLC       4.250% due 04/14/26 50 48
6.100% due 06/10/23 50 53 4.875% due 10/09/26 325 330
5.125% due 05/28/24 335 336 6.625% due 02/17/45 210 243
7.648% due 09/30/49 (ƒ) 240 281 Turkiye Is Bankasi      
Russian Foreign Bond - Eurobond       Series REGS      
Series REGS       5.000% due 04/30/20 200 198
4.875% due 09/16/23 200 217 UBS Group AG      
7.500% due 03/31/30 63 77 7.125% due 12/29/49 (ƒ) 400 410
5.625% due 04/04/42 200 219 Series .      
Sealed Air Corp.       6.875% due 12/29/49 (ƒ) 200 203
Series REGS       Ukraine Government International Bond      
4.500% due 09/15/23 100 122 7.750% due 09/01/19 (Þ) 10 9
Simon Property Group, LP       7.750% due 09/01/20 (Þ) 9 9
2.375% due 10/02/20 200 245 7.750% due 09/01/27 (Þ) 60 58
SkillsSoft Corp. 1st Lien Term Loan       Series REGS      
5.750% due 04/28/21 (Ê) 2,643 2,173 7.750% due 09/01/20 200 197
Sky PLC       7.750% due 09/01/22 270 264
Series REGS       7.750% due 09/01/23 100 98
3.750% due 09/16/24 400 425 7.750% due 09/01/26 125 121
Slovenia Government International Bond       Ukreximbank Via Biz Finance PLC      
Series REGS       Series REGS      
5.500% due 10/26/22 260 297 9.625% due 04/27/22 210 208
5.250% due 02/18/24 270 308 Uruguay Government International Bond      
South Africa Government International       4.375% due 10/27/27 270 286
Bond       7.625% due 03/21/36 25 35
5.875% due 05/30/22 40 45 5.100% due 06/18/50 70 71
5.875% due 09/16/25 345 392        
5.375% due 07/24/44 5 5        

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 281

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Venezuela Government International       Avaya, Inc. Term Loan B7      
Bond       6.250% due 05/29/20 (Ê) 1,970 1,482
9.250% due 09/15/27 251 121 BBB Industries US Holdings, Inc. Term      
9.375% due 01/13/34 50 22 Loan B      
Series REGS       9.750% due 11/03/22 (Ê) 250 222
6.000% due 12/09/20 100 44 Berlin Packaging LLC 2nd Lien Term      
12.750% due 08/23/22 202 106 Loan      
9.000% due 05/07/23 57 25 7.750% due 10/01/22 (Ê) 1,000 990
8.250% due 10/13/24 390 169 BioScrip, Inc. 1st Lien Term Loan B      
7.650% due 04/21/25 295 125 6.500% due 07/31/20 (Ê) 1,607 1,530
11.950% due 08/05/31 137 66 BioScrip, Inc. Term Loan      
7.000% due 03/31/38 285 117 6.500% due 07/31/20 (Ê) 964 918
Virgin Media Investment Holdings, Ltd.       Blue Coat Systems, Inc. Term Loan      
1st Lien Term Loan F       4.500% due 05/26/22 (Ê) 496 496
3.500% due 06/30/23 (Ê) 1,400 1,394 BMC Software Finance, Inc. 1st Lien      
WPP Finance       Term Loan B      
5.625% due 11/15/43 135 162 5.000% due 09/10/20 (Ê) 993 911
      60,594 Brickman Group, Ltd. LLC 1st Lien      
Loan Agreements - 16.7%       Term Loan B     1,308
99 Cents Only Stores LLC New Term       4.000% due 12/18/20 (Ê) 1,314  
        BWAY Holding Co. 1st Lien Term Loan      
Loan              
4.500% due 01/13/19 (Ê) 228 172 5.500% B due 08/14/20 (Ê) 981 980
ABG Intermediate Holdings 2, LLC 1st       Caesars Entertainment Corp. 1st Lien      
Lien Term Loan       Term Loan B      
5.500% due 05/27/21 (Ê) 115 114 7.000% due 10/11/20 (Ê) 2,508 2,447
ABG Intermediate Holdings, LLC 2nd       Camping World, Inc. 1st Lien Term      
Lien Term Loan        Loan B      
9.000% due 05/27/22 (Ê) 250 242 5.250% due 02/20/20 (Ê) 1,457 1,455
Accuvant, Inc. 2nd Lien Term Loan       CareCore National LLC Term Loan      
10.000% due 01/28/23 (Ê) 900 850 5.500% due 03/06/21 (Ê) 369 358
Active Network, Inc. 1st Lien Term       Cast & Crew Payroll LLC 1st Lien Term      
Loan B         Loan      
5.500% due 11/15/20 (Ê) 494 490 8.750% due 08/03/22 (Ê) 750 742
Albertsons LLC 1st Lien Term Loan B4       Cast & Crew Payroll LLC 2nd Lien Term      
4.500% due 08/22/21 (Ê) 2,108 2,118 Loan      
Alliant Holdings I, LP 1st Lien Term       8.750% due 08/03/23 (Ê) 250 235
Loan B       Cengage Learning, Inc. 1st Lien Term      
1.000% due 08/14/22 (Ê)(v) 125 125 Loan      
Alvogen Pharmaceutical US, Inc. Term       5.250% due 06/07/23 (Ê) 1,293 1,289
Loan       Charming Charlie, Inc. 1st Lien Term      
6.000% due 04/02/22 (Ê) 1,465 1,465 Loan B      
American Airlines, Inc. 1st Lien Term       9.000% due 12/24/19 (Ê) 239 162
Loan       Charter Communications Operating LLC      
3.250% due 05/21/20 (Ê) 994 989 Term Loan H      
American Airlines, Inc. 1st Lien Term       3.250% due 08/24/21 (Ê) 2,749 2,757
Loan B       Chelsea Petroleum Products I LLC 1st      
3.250% due 04/28/23 (Ê) 250 249 Lien Term Loan B      
Ancestry.com, Inc. Term Loan B       5.250% due 10/28/22 (Ê) 500 499
5.000% due 08/29/22 (Ê) 1,092 1,094 Chrysler Group LLC 1st Lien Term      
AP Gaming I LLC 1st Lien Term Loan B       Loan B      
9.250% due 12/20/20 (Ê) 247 231 3.250% due 12/31/18 (Ê) 581 582
Arbor Pharmaceuticals, Inc. 1st Lien       Ciena Corp. 1st Lien Term Loan      
Term Loan B       4.250% due 04/25/21 (Ê) 250 251
6.000% due 06/28/23 469 460 Cincinnati Bell, Inc. 1st Lien Term      
Arctic Glacier USA, Inc. 1st Lien Term       Loan B      
Loan B       4.000% due 09/10/20 (Ê) 494 493
6.000% due 05/13/19 (Ê) 1,383 1,334 Cision, Inc. Term Loan B      
AssuredPartners, Inc. 1st Lien Term       7.000% due 05/12/23 500 477
Loan       Commercial Barge Line Co. 1st Kueb      
5.750% due 10/21/22 (Ê) 251 250 Term Loan      
Asurion LLC Term Loan B4       9.750% due 11/12/20 (Ê) 220 206
5.000% due 08/04/22 (Ê) 2,229 2,231 Communications Sales & Leasing, Inc.      
Asurion, LLC 2nd Lien Term Loan       1st Lien Term Loan B      
8.500% due 03/03/21 (Ê) 1,440 1,426 5.000% due 10/16/22 (Ê) 990 989
Avago Technologies Cayman Finance,       Community Health Systems, Inc. Term      
Ltd. 1st Lien Term Loan B1       Loan B2      
4.250% due 02/01/23 (Ê) 2,197 2,197 4.000% due 01/27/21 (Ê) 2,240 2,211

 

See accompanying notes which are an integral part of this quarterly report.

282 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Compuware Corp. 1st Lien Term Loan B2       4.750% due 12/09/20 (Ê) 750 751
6.250% due 12/15/21 (Ê) 987 946 IPC Corp. 2nd Lien Term Loan      
Concentra, Inc. 2nd Lien Term Loan B       10.500% due 02/06/22 (Ê) 250 196
9.000% due 06/01/23 (Ê) 170 167 J Crew Group, Inc. Covenant-Lite 1st      
Connolly Corp. 2nd Lien Term Loan       Lien Term Loan B      
8.000% due 05/14/22 (Ê) 76 75 4.000% due 03/05/21 (Ê) 99 70
CPI Card Group, Inc. 1st Lien Term       Koosharem LLC Term Loan      
Loan B       7.500% due 05/16/20 (Ê) 494 424
5.500% due 08/17/22 (Ê) 180 175 Kraton Polymers LLC Term Loan B      
Creative Artists Agency, LLC Term       6.000% due 01/06/22 (Ê) 574 571
Loan B       Level 3 Financing, Inc. Term Loan B2      
5.500% due 12/17/21 (Ê) 248 248 3.500% due 05/31/22 (Ê) 1,000 1,003
CSRA, Inc. Term Loan B       LTS Buyer LLC 2nd Lien Term Loan      
1.000% due 10/29/22 (Ê)(v) 1,000 1,004 8.000% due 04/01/21 (Ê) 470 469
Dell International LLC 1st Lien Term       Match Group, Inc. Term Loan B1      
Loan B2       5.500% due 10/27/22 (Ê) 599 604
4.000% due 04/29/20 (Ê) 492 492 MCC Iowa LLC 1st Lien Term Loan H      
Dell, Inc. Term Loan B       3.250% due 01/29/21 (Ê) 494 493
4.000% due 05/24/23 2,500 2,501 Media General, Inc. 1st Lien Term Loan      
Eastman Kodak Co. Exit Term Loan       B      
7.250% due 09/03/19 (Ê) 1,243 1,222 4.000% due 07/31/20 (Ê) 462 462
EnergySolutions LLC 1st Lien Term       Mergermarket USA, Inc. 1st Lien Term      
Loan B       Loan      
6.750% due 05/29/20 (Ê) 606 601 4.500% due 02/04/21 (Ê) 883 861
First Data Corp. Term Loan B       MGM Growth Properties, LLC 1st Lien      
4.425% due 07/10/22 (Ê) 2,250 2,256 Term Loan B      
Foundation Building Materials LLC 1st       4.000% due 04/25/23 (Ê) 249 251
Lien Term Loan       MSC.Software Corp. 1st Lien Term Loan      
1.000% due 10/09/22 (Ê)(v) 269 269 5.000% due 05/29/20 (Ê) 494 475
Foundational Building Materials, LLC       National Vision, Inc. 2nd Lien Term      
2nd Lien Term Loan       Loan      
11.500% due 09/17/23 (Å)(Ê) 590 589 6.750% due 03/13/22 (Ê) 1,280 1,155
FPC Holdings, Inc. 1st Lien Term Loan       Navistar, Inc. 1st Lien Term Loan B      
5.250% due 11/27/19 (Ê) 494 413 6.500% due 08/07/20 (Ê) 249 234
FullBeauty Brands Holding Corp. 2nd       NBTY, Inc. 1st Lien Term Loan B      
Lien Term Loan       5.000% due 05/05/23 (Ê) 1,250 1,244
10.000% due 09/22/23 250 203 Neptune Finco Corp. Term Loan B      
GENEX Holdings, Inc. 1st Lien Term       5.000% due 10/09/22 (Ê) 748 753
Loan B       New Millennium Holding Co., Inc. Exit      
5.250% due 05/30/21 (Ê) 1,000 987 Term Loan      
GENEX Holdings, Inc. 2nd Lien Term       7.500% due 12/21/20 (Ê) 85 60
Loan       Numericable US LLC Term Loan B6      
8.750% due 05/30/22 (Ê) 250 237 4.750% due 02/10/23 (Ê) 249 249
Genoa a QoL Healthcare Co LLC 2nd       Numericable US LLC Term Loan B7      
Lien Term Loan              
8.750% due 04/30/23 (Ê) 474 468 5.000% due 01/31/24 (Ê) 2,249 2,251
Getty Images, Inc. Covenant-Lite 1st       NVA Holdings, Inc. 2nd Lien Term Loan      
Lien Term Loan B       0.048% due 08/14/22 (Ê) 170 169
4.750% due 10/18/19 (Ê) 987 774 Opal Acquisition, Inc. 1st Lien Term      
Harland Clarke Holdings Corp.       Loan B      
Covenant-Lite 1st Lien Term Loan B4       5.000% due 11/27/20 (Ê) 1,532 1,369
1.000% due 08/04/19 (Ê)(v) 500 485 Patterson Co. 2nd Lien Term Loan      
Hawaiian Telcom Communications, Inc.       8.750% due 08/28/23 (Å)(Ê) 590 575
Term Loan B       Petco Animal Supplies, Inc. 1st Lien      
5.000% due 06/06/19 (Ê) 166 166 Term Loan B1      
Heartland Dental Care, LLC 2nd Lien       8.250% due 01/26/23 (Ê) 249 250
Term Loan       PetSmart, Inc. 1st Lien Term Loan B      
9.750% due 06/21/19 (Ê) 780 743 4.250% due 03/10/22 (Ê) 800 801
Houghton Mifflin Harcourt Publishers,       Pinnacle Entertainment, Inc. Term Loan      
Inc. Term Loan B       B      
4.000% due 05/29/21 (Ê) 495 490 3.250% due 04/28/23 750 750
Indigo Merger Sub I, Inc. 1st Lien Term       Pinnacle Foods Finance LLC 1st Lien      
Loan       Term Loan      
0.050% due 07/08/21 (Ê) 250 249 1.000% due 01/13/23 (Ê)(v) 500 501
Informatica Corp. 1st Lien Term Loan       PowerTeam Services, LLC 2nd Lien      
4.000% due 06/03/22 (Ê) 1,249 1,231 Term Loan      
Intrawest Operations Group, LLC 1st       8.250% due 11/06/20 (Ê) 250 245
Lien Term Loan B              

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 283

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value   Amount ($) Value
    or Shares $     or Shares $
Pre-Paid Legal Services, Inc. 2nd Lien       TruGreen Limited Partnership 1st Lien        
Term Loan       Term Loan B        
10.250% due 07/01/20 (Ê) 250 248 6.500% due 03/29/23   750 756
Prime Security Services Borrower LLC       TTM Technologies, Inc. 1st Lien Term        
Term Loan B1       Loan        
4.750% due 04/21/22 (Ê) 125 126 6.000% due 05/31/21 (Ê)   443 443
Quincy Newspapers, Inc. 1st Lien Term       U.S. Renal Care, Inc. 2nd Lien Term        
Loan B       Loan        
5.500% due 11/02/22 (Ê) 495 496 9.000% due 11/16/23 (Ê)   1,090 1,085
Realogy Group LLC 1st Lien Term Loan       Valeant Pharmaceuticals International,        
B       Inc. 1st Lien Term Loan BF1        
3.750% due 07/14/22 (Ê) 1,000 1,005 5.000% due 04/02/22 (Ê)   953 946
RentPath, Inc. 1st Lien Term Loan       Varsity Brands, Inc. 1st Lien Term Loan        
6.250% due 12/17/21 (Ê) 987 918 5.000% due 12/11/21   1,000 1,003
Riverbed Technology, Inc. 1st Lien Term       Waste Industries USA, Inc. 1st Lien        
Loan B       Term Loan B        
1.000% due 04/27/22 (Ê)(v) 1,250 1,256 3.500% due 02/27/20 (Ê)   500 500
ROC Finance LLC Term Loan       Western Digital Corp. 1st Lien Term        
5.000% due 06/20/19 (Ê) 1,642 1,583 Loan B        
Rovi Solutions Corp. Covenant-Lite 1st       6.250% due 04/29/23 (Ê)   111 112
Lien Term Loan B       William Morris Endeavor Entertainment        
3.750% due 07/02/21 (Ê) 124 123 LLC 1st Lien Term Loan B        
Royal Holdings, Inc. Term Loan       5.250% due 05/06/21 (Ê)   2,494 2,490
8.500% due 06/19/23 (Å)(Ê) 390 380 World Endurance Holdings 1st Lien        
Royal Oak Enterprises LLC Term Loan B       Term Loan        
1.000% due 06/16/23 (v) 1,000 997 5.250% due 06/26/21 (Ê)   624 622
RP Crown Parent LLC 1st Lien Term       Zebra Technologies Corp. Term Loan B        
Loan B       4.750% due 10/27/21 (Ê)   2,085 2,097
6.000% due 12/21/18 (Ê) 250 242         109,431
RPI Finance Trust 1st Lien Term Loan       Mortgage-Backed Securities - 0.0%      
B4       JPMorgan Chase Commercial Mortgage        
3.500% due 12/11/20 244 245 Securities Trust        
Scientific Games International, Inc. Term       Series 2006-LDP9 Class A3        
Loan B2       5.336% due 05/15/47   66 67
6.000% due 10/01/21 (Ê) 2,981 2,977 Morgan Stanley Re-REMIC Trust        
SCS Holdings, Inc. 1st Lien Term Loan       Series 2010-GG10 Class A4B        
6.000% due 10/30/22 (Ê) 494 497 5.989% due 08/15/45 (Þ)   150 152
SeaWorld Parks & Entertainment, Inc.                
Incremental Term Loan B3               219
4.000% due 05/14/20 (Ê) 1,940 1,941 Non-US Bonds - 7.2%        
Signode Industrial Group US, Inc. 1st       ABN AMRO Bank NV        
Lien Term Loan B       2.875% due 06/30/25 EUR 200 233
3.750% due 05/01/21 (Ê) 582 579 Alimentation Couche-Tard, Inc.        
SIRVA Worldwide, Inc. 1st Lien Term       Series 2        
Loan       3.319% due 11/01/19 CAD 170 136
7.500% due 03/27/19 (Ê) 2,645 2,612 Allianz Finance II BV        
SolarWinds Holdings, Inc. Term Loan       5.750% due 07/08/41 EUR 300 390
6.500% due 02/05/23 (Ê) 3,438 3,464 Aquarius & Investments PLC for Zurich        
Solera LLC Term Loan B       Insurance Co., Ltd.        
5.750% due 03/04/23 (Ê) 1,235 1,244 4.250% due 10/02/43 EUR 235 294
SourceHOV LLC 1st Lien Term Loan B       Aviva PLC        
7.750% due 10/31/19 (Ê) 500 393 6.625% due 06/03/41 GBP 200 295
Spectrum Brands, Inc. Term Loan       3.875% due 07/03/44 EUR 200 224
3.500% due 06/23/22 (Ê) 880 884 AXA SA        
Steak N' Shake Operations, Inc. 1st Lien       5.250% due 04/16/40 EUR 250 313
Term Loan B       BMW Finance NV        
4.750% due 03/19/21 (Ê) 243 238 3.625% due 01/29/18 EUR 115 136
Sterling Midco Holdings, Inc. 2nd Lien       BNP Paribas SA        
Term Loan       5.750% due 01/24/22 GBP 75 115
8.750% due 06/19/23 (Ê) 710 678 2.375% due 02/17/25 EUR 200 232
TCH-2 Holdings, LLC 1st Lien Term       Brazil Letras do Tesouro Nacional        
Loan       Series LTN        
5.500% due 05/12/21 (Ê) 1,000 1,000 Zero coupon due 01/01/19 BRL 7,510 1,756
Telenet Financing USD LLC Term Loan       Zero coupon due 07/01/19 BRL 300 67
AD       Brazil Notas do Tesouro Nacional        
4.250% due 06/30/24 (Ê) 500 501 Series NTNB        
Tribune Media Co. 1st Lien Term Loan B       6.000% due 05/15/35 BRL 270 250
3.750% due 12/27/20 (Ê) 495 496 6.000% due 08/15/50 BRL 450 430

 

See accompanying notes which are an integral part of this quarterly report.

284 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) Value   Amount ($) Value
  or Shares $   or Shares $
Series NTNF         Series 0210        
10.000% due 01/01/23 BRL 1,690 484 4.012% due 09/15/17 MYR 240 60
10.000% due 01/01/25 BRL 5,270 1,493 Series 0215        
Bundesrepublik Deutschland         3.795% due 09/30/22 MYR 1,670 429
1.500% due 05/15/24 EUR 200 257 Series 0311        
Series 2007         4.392% due 04/15/26 MYR 5,710 1,427
4.250% due 07/04/39 EUR 185 393 Series 0415        
Carrefour SA         4.254% due 05/31/35 MYR 700 172
1.750% due 07/15/22 EUR 200 244 Series 0416        
Claris ABS         3.620% due 11/30/21 MYR 210 53
Series 2012-1         Series 1/06        
0.354% due 10/31/60 (Ê) EUR 46 51 4.262% due 09/30/21 MYR 1,990 506
Colombian Titulos de Tesoreria         Mexican Bonos        
Series B         Series M 20        
7.000% due 05/04/22 COP 1,691,000 544 10.000% due 12/05/24 MXN 19,582 1,330
10.000% due 07/24/24 COP 3,315,000 1,247 Series M 30        
6.000% due 04/28/28 COP 2,476,000 701 10.000% due 11/20/36 MXN 10,192 767
Enel Finance International NV         Series M        
5.625% due 08/14/24 GBP 135 228 5.000% due 12/11/19 MXN 29,787 1,566
5.750% due 09/14/40 GBP 100 191 Mexican Udibonos        
Eurosail-UK 2007-1nc PLC         Series S        
Series 2007-1X Class A3C         4.000% due 06/13/19 MXN 3,740 211
0.734% due 03/13/45 (Ê) GBP 28 35 4.000% due 11/15/40 MXN 2,439 149
Fonterra Co.-operative Group, Ltd.         Muenchener Rueckversicherungs-        
4.500% due 06/30/21 AUD 200 161 Gesellschaft AG in Muenchen        
Hungary Government Bond         6.000% due 05/26/41 EUR 100 132
Series 17/A         NWEN Finance PLC        
6.750% due 11/24/17 HUF 144,600 560 5.875% due 06/21/21 GBP 100 144
Series 19/A         Peruvian Government International Bond        
6.500% due 06/24/19 HUF 53,720 221 Series REGS        
Series 20/B         8.200% due 08/12/26 PEN 70 24
3.500% due 06/24/20 HUF 107,640 413 6.950% due 08/12/31 PEN 40 13
Series 23/A         6.900% due 08/12/37 PEN 1,570 506
6.000% due 11/24/23 HUF 119,700 532 Philippine Government Bond        
Series 25/B         Series 1060        
5.500% due 06/24/25 HUF 110,670 483 3.625% due 09/09/25 PHP 7,650 168
Iberdrola Finanzas SAU         Poland Government Bond        
6.000% due 07/01/22 GBP 50 83 Series 0420        
Indonesia Treasury Bond         1.500% due 04/25/20 PLN 2,600 655
Series FR56         Series 0718        
8.375% due 09/15/26 IDR 17,567,000 1,482 2.500% due 07/25/18 PLN 1,130 294
Series FR68         Series 0922        
8.375% due 03/15/34 IDR 7,770,000 649 5.750% due 09/23/22 PLN 4,260 1,300
Series FR69         Series 1020        
7.875% due 04/15/19 IDR 1,364,000 107 5.250% due 10/25/20 PLN 2,030 587
Series FR70         Poland Government International Bond        
8.375% due 03/15/24 IDR 2,760,000 229 Series 0725        
Series FR71         3.250% due 07/25/25 PLN 2,960 786
9.000% due 03/15/29 IDR 8,872,000 775 Province of Manitoba Canada        
Series FR72         4.400% due 09/05/25 CAD 275 254
8.250% due 05/15/36 IDR 704,000 59 Province of Ontario Canada        
Series FR73         1.950% due 01/27/23 CAD 320 253
8.750% due 05/15/31 IDR 14,649,000 1,273 4.650% due 06/02/41 CAD 135 141
ING Bank NV         Queensland Treasury Corp.        
Series EMTM         7.125% due 09/18/17 (Þ) NZD 100 76
3.625% due 02/25/26 EUR 200 244 Series 23        
Kelda Finance No. 3 PLC         4.250% due 07/21/23 (Å) AUD 105 91
Series REGS         Residential Mortgage Securities 22 PLC        
5.750% due 02/17/20 GBP 100 143 Series 2006-22X Class A3A        
KFW         0.944% due 11/14/39 (Ê) GBP 16 19
1.625% due 01/15/21 EUR 40 49 Romania Government Bond        
Malaysia Government International Bond         Series 10Y        
Series 0111         4.750% due 02/24/25 RON 2,505 702
4.160% due 07/15/21 MYR 650 161 Romanian Government International        
Series 0207         Bond        
3.814% due 04/15/26 MYR 2,890 755          

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 285

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) Value   Amount ($) Value
    or Shares $     or Shares $
Series EMTN         United Kingdom Treasury Bond        
2.875% due 10/28/24 EUR 80 95 2.000% due 09/07/25 GBP 245 361
RTE Reseau de Transport d'Electricite         Unitymedia GmbH        
SA         Series REGS        
1.625% due 10/08/24 EUR 200 250 3.750% due 01/15/27 EUR 200 211
2.750% due 06/20/29 EUR 200 281 Virgin Media Finance PLC        
Russian Federal Bond - OFZ         6.375% due 10/15/24 (Þ) GBP 200 275
Series 6205         WPP Finance Deutschland GmbH        
7.600% due 04/14/21 RUB 24,740 362 1.625% due 03/23/30 EUR 200 233
Series 6208                 47,268
7.500% due 02/27/19 RUB 33,600 493 United States Government Treasuries - 0.7%    
Series 6209         United States Treasury Notes        
7.600% due 07/20/22 RUB 6,540 95 1.500% due 12/31/18   3,030 3,088
Series 6211         1.125% due 06/30/21   805 808
7.000% due 01/25/23 RUB 13,100 185 1.625% due 05/15/26   250 254
Series 6212         2.875% due 05/15/43   220 253
7.050% due 01/19/28 RUB 2,510 35 2.875% due 02/15/45   30 32
Series 6215         2.500% due 02/15/46   35 37
7.000% due 08/16/23 RUB 55,830 785 2.500% due 05/15/46   340 363
Santander Issuances SAU                  
2.500% due 03/18/25 EUR 100 109         4,835
Santander UK PLC         Total Long-Term Investments        
0.875% due 01/13/20 EUR 285 321 (cost $344,414)       343,104
SGSP Australia Assets Pty, Ltd.         Common Stocks - 26.2%        
Series EMTN         Consumer Discretionary - 1.9%        
2.000% due 06/30/22 EUR 200 242 adidas AG   2,650 435
Siviglia SPV SRL         Amazon.com, Inc.(Æ)   73 55
Series 2012-1 Class A         Barratt Developments PLC   36,774 213
0.498% due 10/25/55 (Ê) EUR 57 62 Brinker International, Inc.   612 29
Societe Generale SA         Cie Financiere Richemont SA   11,584 704
2.625% due 02/27/25 EUR 100 117 Comcast Corp. Class A   1,291 87
South Africa Government International         Daimler AG   4,882 331
Bond         Diageo PLC   30,211 864
Series 2023         Flight Centre, Ltd.   7,475 183
7.750% due 02/28/23 ZAR 19,836 1,387 GameStop Corp. Class A   588 18
Series 2032         General Motors Co.   552 17
8.250% due 03/31/32 ZAR 6,270 417 Grupo Televisa SAB - ADR   25,756 684
Series 2048         Hilton Worldwide Holdings, Inc.   4,733 110
8.750% due 02/28/48 ZAR 4,730 317 Home Depot, Inc. (The)   4,408 609
Series R186         Honda Motor Co., Ltd.   30,700 838
10.500% due 12/21/26 ZAR 10,760 872 Hyundai Motor Co.   10,766 1,264
Series R203         Lamar Advertising Co. Class A(ö)   1,649 112
8.250% due 09/15/17 ZAR 5,030 365 Las Vegas Sands Corp.   1,924 97
Series R214         Matas A/S   26,096 460
6.500% due 02/28/41 ZAR 18,500 966 MC Group PCL   79,200 31
Standard Chartered PLC         McDonald's Corp.   6,135 722
4.000% due 10/21/25 EUR 200 229 McDonald's Holdings Co. Japan, Ltd.   15,900 487
Telefonica Emisiones SAU         Michael Kors Holdings, Ltd.(Æ)   2,684 139
5.375% due 02/02/26 GBP 100 168 Next PLC   2,665 177
Telstra Corp., Ltd.         Pacific Textiles Holdings, Ltd.   30,000 43
4.500% due 11/13/18 AUD 280 221 Pandora Media, Inc.(Æ)   27,239 370
Tesco PLC         Pearson PLC   5,837 68
5.000% due 03/24/23 GBP 120 171 Persimmon PLC Class A   10,227 228
Thailand Government Bond         Priceline Group, Inc. (The)(Æ)   41 55
3.625% due 06/16/23 THB 12,930 412 Regal Entertainment Group Class A   10,510 247
Thailand Government International Bond         Sankyo Co., Ltd.   4,200 153
3.875% due 06/13/19 THB 30,930 946 SATS, Ltd.   88,900 290
3.850% due 12/12/25 THB 30,640 1,012 Secom Co., Ltd.   4,861 365
Turkey Government Bond         ServiceMaster Global Holdings, Inc.(Æ)   1,321 50
7.100% due 03/08/23 TRY 2,280 673 Shingakukai Co., Ltd.   23,484 111
8.000% due 03/12/25 TRY 4,460 1,358 Singapore Press Holdings, Ltd.   87,500 248
Turkey Government International Bond         Starbucks Corp.   2,697 157
Series 5Y         Tatts Group, Ltd.   70,299 221
6.300% due 02/14/18 TRY 3,010 972 Taylor Wimpey PLC   116,262 238
United Kingdom Gilt         Television Broadcasts, Ltd.   4,200 14
3.250% due 01/22/44 GBP 185 337 Television Francaise 1   19,853 192

 

See accompanying notes which are an integral part of this quarterly report.

286 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair       Principal Fair
    Amount ($) Value       Amount ($) Value
    or Shares $       or Shares $
Thomson Reuters Corp. 8,384 353 Lukoil PJSC - ADR 3,221 140
TJX Cos., Inc. 720 59 Neste Oyj 5,737 217
Toyota Motor Corp.(Æ) 300 17 New Hope Corp., Ltd. 187,391 228
Wal-Mart Stores, Inc. 3,807 278 NextEra Energy Partners, LP 3,168 99
Walt Disney Co. (The) 773 74 Occidental Petroleum Corp. 8,511 636
Wesfarmers, Ltd. 7,791 255 Rice Midstream Partners, LP 4,044 77
      12,752 Royal Dutch Shell PLC Class A 29,497 765
        Royal Dutch Shell PLC Class A - ADR 7,571 392
Consumer Staples - 2.7%       SemGroup Corp. Class A 2,574 75
Altria Group, Inc. 14,524 983 Semirara Mining & Power Corp. 19,410 49
Astarta Holding NV(Æ) 6,940 87 Statoil ASA Class N 24,808 394
BrasilAgro - Co. Brasileira de       Targa Resources Corp. 5,849 218
Propriedades Agricolas 4,861 19 Total SA 10,208 491
British American Tobacco PLC 11,445 730 Tupras Turkiye Petrol Rafinerileri AS 1,465 32
China Yurun Food Group, Ltd.(Æ) 832,000 123 Ultrapar Participacoes SA 8,089 185
CK Hutchison Holdings, Ltd. 33,219 389 Vermilion Energy, Inc. 10,391 346
Clorox Co. (The) 2,366 310 Washington H Soul Pattinson & Co., Ltd. 38,422 509
Coca-Cola Co. (The) 54,551 2,380 Williams Cos., Inc. (The) 12,815 307
Colgate-Palmolive Co. 1,220 91 Woodside Petroleum, Ltd. 10,301 208
Constellation Brands, Inc. Class A 1,381 227         13,434
Dr Pepper Snapple Group, Inc. 1,486 146          
Golden Agri-Resources, Ltd. 1,456,400 392 Financial Services - 4.8%        
Imperial Tobacco Group PLC 8,670 457 Activia Properties, Inc.(ö) 9 47
Japan Tobacco, Inc. 4,200 164 ADO Properties SA(Þ) 1,017 41
JM Smucker Co. (The) 350 54 Aflac, Inc. 3,369 244
Kernel Holding SA 4,025 64 Alexandria Real Estate Equities, Inc.(ö) 1,090 122
Kimberly-Clark Corp. 4,119 534 Allianz SE 1,441 206
KT&G Corp. 2,088 226 Allied Properties Real Estate Investment      
MHP SA - GDR 39,313 362 Trust(ö) 4,419 134
PepsiCo, Inc. 20,859 2,272 Allied World Assurance Co. Holdings 4,273 175
Philip Morris International, Inc. 8,881 890 AG        
Procter & Gamble Co. (The) 33,744 2,888 Ally Financial, Inc. 46,251 834
Reynolds American, Inc. 15,729 787 alstria office REIT-AG(ö) 2,747 38
Scandinavian Tobacco Group A/S(Þ) 19,336 342 American Capital Agency Corp.(ö) 15,303 300
SLC Agricola SA 40,994 190 American Financial Group, Inc. 1,589 116
Stock Spirits Group PLC 198,203 407 American Homes 4 Rent Class A(ö) 4,503 98
Swedish Match AB 34,934 1,274 American Tower Corp.(ö) 720 83
Unilever NV 15,400 713 AmTrust Financial Services, Inc. 3,131 75
Unilever PLC 6,042 282 Apartment Investment & Management 3,429 158
Woolworths, Ltd. 3,221 57 Co. Class A(ö)        
        Apple Hospitality REIT, Inc.(ö) 11,327 231
      17,840 Arthur J Gallagher & Co. 4,205 207
        Assura PLC(ö) 47,930 37
Energy - 2.0%       ASX, Ltd. - ADR 11,850 447
Antero Resources Corp.(Æ) 5,226 137 Australia & New Zealand Banking        
APA Group 30,087 222   1,754 34
        Group, Ltd. - ADR        
ARC Resources, Ltd. 22,462 395 AvalonBay Communities, Inc.(ö) 196 36
Areva SA(Æ) 20,599 90 AXA SA 11,795 240
BP PLC 27,049 153 Axis Capital Holdings, Ltd. 3,833 213
BP PLC - ADR 22,938 789 Berkshire Hathaway, Inc. Class B(Æ) 1,083 156
Cenovus Energy, Inc. 15,240 218 Big Yellow Group PLC(ö) 7,862 74
Cheniere Energy, Inc.(Æ) 9,669 405 BlackRock, Inc. Class A 520 190
Chevron Corp. 7,293 747 Brixmor Property Group, Inc.(ö) 7,005 199
Cloud Peak Energy, Inc.(Æ) 35,925 123 Buwog AG 3,901 95
CONSOL Energy, Inc.(Æ) 11,240 218 Canadian Imperial Bank of Commerce 3,734 284
Enterprise Products Partners, LP 12,554 357 CapitaLand Mall Trust Class A(ö) 42,500 68
ERG SpA 9,353 108 Care Capital Properties, Inc.(ö) 1,516 45
Exxon Mobil Corp. 24,196 2,152 Castellum AB 2,284 35
Gazprom PJSC - ADR 133,301 548 Cheung Kong Property Holdings, Ltd. 56,000 402
Gazprom PJSC 42,995 90 China Construction Bank Corp. Class H 93,000 62
Hanergy Thin Film Power Group, Ltd. 205,123 103 Chubb, Ltd. 2,023 253
(Æ)       CI Financial Corp. 9,738 199
Helmerich & Payne, Inc. 4,174 259 Cincinnati Financial Corp. 6,952 519
Husky Energy, Inc.(Æ) 8,068 95 CIT Group, Inc. 26,618 920
JX Holdings, Inc. 13,000 49 Citizens Financial Group, Inc. 11,736 262
Kinder Morgan, Inc. 39,742 808 CME Group, Inc. Class A 2,384 244

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 287

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)  
      Principal Fair       Principal Fair
      Amount ($) Value       Amount ($) Value
      or Shares $       or Shares $
Commonwealth Bank of Australia - ADR 3,627   213 Mitsui Fudosan Co., Ltd. 9,000 194
Corporate Office Properties Trust(ö) 5,359   161 Moscow Exchange MICEX-RTS PJSC 94,410 162
Corrections Corp. of America(ö) 12,153   390 Muenchener Rueckversicherungs- 2,639 440
Cousins Properties, Inc.(ö) 5,626   60 Gesellschaft AG in Muenchen        
CPN Retail Growth Leasehold Property           National Australia Bank, Ltd. - ADR 1,551 31
Fund 115,500   67 Nomura Real Estate Master Fund, Inc.(ö) 53 88
Crown Castle International Corp.(ö) 1,918   186 Nordea Bank AB 8,033 72
Deutsche Wohnen AG 4,346   163 NSI NV(ö) 7,515 33
Dexus Property Group(ö) 19,014   141 Old Republic International Corp. 2,452 48
Digital Realty Trust, Inc.(ö) 1,080   113 Omega Healthcare Investors, Inc.(ö) 8,647 298
Douglas Emmett, Inc.(ö) 2,070   79 Orix JREIT, Inc.(ö) 31 57
Dundee Corp. Class A(Æ) 33,174   173 PacWest Bancorp 5,221 216
DuPont Fabros Technology, Inc.(ö) 1,630   78 PAX Global Technology, Ltd. 37,000 31
Education Realty Trust, Inc.(ö) 1,623   78 Pebblebrook Hotel Trust(ö) 1,120 33
Empire State Realty Trust, Inc. Class 4,131   87 People's United Financial, Inc. 12,942 196
A(ö)           ProAssurance Corp. 1,829 94
Endurance Specialty Holdings, Ltd. 4,706   318 Progressive Corp. (The) 6,039 196
Equity Commonwealth 9,500   257 Prologis, Inc.(ö) 4,693 256
Equity LifeStyle Properties, Inc. Class 838   69 Public Storage(ö) 1,500 39
A(ö)           QTS Realty Trust, Inc. Class A(ö) 841 48
Erie Indemnity Co. Class A 1,209   118 Ramco-Gershenson Properties Trust(ö) 2,633 52
Essex Property Trust, Inc.(ö) 691   162 Realty Income Corp.(ö) 1,306 93
Etalon Group, Ltd. - GDR 67,068   177 Retail Properties of America, Inc. Class        
Fifth Third Bancorp 14,514   275 A(ö) 4,635 82
Forest City Realty Trust, Inc. Class A(ö) 4,721   112 Royal Bank of Scotland Group PLC(Æ) 99,355 253
Four Corners Property Trust, Inc.(ö) 18,812   408 Sberbank of Russia PJSC Class T 39,642 84
Gaming and Leisure Properties, Inc.(ö) 2,298   82 Sberbank of Russia PJSC - ADR 66,873 592
General Growth Properties, Inc.(ö) 518   17 Scentre Group(ö) 17,142 69
Genworth MI Canada, Inc. 14,676   392 SCOR SE - ADR 5,880 172
Great-West Lifeco, Inc. 8,222   214 Segro PLC(ö) 20,092 118
Guoco Group, Ltd. 7,000   80 Simon Property Group, Inc.(ö) 1,740 395
H&R Real Estate Investment Trust(ö) 923   16 Singapore Exchange, Ltd. 67,000 378
Hammerson PLC(ö) 14,932   110 SL Green Realty Corp.(ö) 348 41
Hang Seng Bank, Ltd. 15,500   277 Smart Real Estate Investment Trust(ö) 2,930 86
Hannover Rueck SE 2,555   261 Sompo Japan Nipponkoa Holdings, Inc. 16,294 526
HCP, Inc.(ö) 6,453   253 Spirit Realty Capital, Inc.(ö) 43,551 595
Hiscox, Ltd. 9,206   129 Sprott, Inc. 215,360 407
Hispania Activos Inmobiliarios SA(Æ)(ö) 3,186   43 Sun Communities, Inc.(ö) 1,792 142
Hongkong Land Holdings, Ltd. 5,285   34 Sun Hung Kai Properties, Ltd. 14,000 200
Hospitality Properties Trust(ö) 4,798   153 Sunstone Hotel Investors, Inc.(ö) 2,431 32
Host Hotels & Resorts, Inc.(ö) 6,372   113 Svenska Handelsbanken AB Class A 19,518 235
HSBC Holdings PLC 28,683   188 Tanger Factory Outlet Centers, Inc.(ö) 3,683 154
Hudson Pacific Properties, Inc.(ö) 2,100   71 Tesco Lotus Retail Growth Freehold &        
Hulic Reit, Inc.(ö) 39   69 Leasehold Property Fund 32,600 16
Immofinanz AG 35,419   77 Tokyo Tatemono Co., Ltd. 10,900 136
ING Groep NV 4,135   46 Travelers Cos., Inc. (The) 2,087 243
Insurance Australia Group, Ltd. 73,006   334 Tryg A/S 14,019 261
Intact Financial Corp. 1,821   131 Two Harbors Investment Corp.(ö) 76,612 670
Intercontinental Exchange, Inc. 108   29 UDR, Inc.(ö) 5,476 204
Invincible Investment Corp.(ö) 63   42 Unibail-Rodamco SE(ö) 792 218
Iron Mountain, Inc.(ö) 13,140   542 Unibail-Rodamco SE(Æ)(ö) 631 174
JPMorgan Chase & Co. 2,216   142 UNITE Group PLC (The) 5,401 45
Keppel REIT(ö) 56,600   45 United Urban Investment Corp.(ö) 37 69
Kilroy Realty Corp.(ö) 2,441   179 Uranium Participation Corp.(Æ) 89,351 274
Kimco Realty Corp.(ö) 2,502   80 Ventas, Inc.(ö) 711 54
Klepierre - GDR(ö) 5,501   263 Vicinity Centres(ö) 64,838 171
Liberty Property Trust(ö) 1,703   70 Visa, Inc. Class A 1,007 79
Link REIT(ö) 18,500   138 Wells Fargo & Co. 46,580 2,234
Lloyds Banking Group PLC 884,354   621 Welltower, Inc.(ö) 10,084 800
LondonMetric Property PLC(ö) 33,385   71 Wereldhave NV(ö) 138 7
MasterCard, Inc. Class A 1,126   107 Westpac Banking Corp. 12,668 300
Mercury General Corp. 4,418   245 WP Carey, Inc.(ö) 3,180 231
Merlin Properties Socimi SA(ö) 4,392   50 XL Group, Ltd. 7,316 253
Mid-America Apartment Communities, 1,186   126 Zurich Insurance Group AG 114 27
Inc.(ö)                   31,719
Mitsubishi Estate Co., Ltd. 9,000   167          

 

See accompanying notes which are an integral part of this quarterly report.

288 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair       Principal Fair
    Amount ($) Value       Amount ($) Value
    or Shares $       or Shares $
Health Care - 2.3%       American Airlines Group, Inc. 5,863 208
AbbVie, Inc. 3,947 261 Atlantia SpA 26,443 661
As One Corp. 6,381 263 Auckland International Airport, Ltd. 137,791 734
AstraZeneca PLC - ADR 12,131 414 Automatic Data Processing, Inc. 4,487 399
AstraZeneca PLC 2,220 149 Babcock & Wilcox Co. (The) 8,205 302
Bristol-Myers Squibb Co. 3,641 272 BAE Systems PLC 85,874 606
Eli Lilly & Co. 2,463 204 BBA Aviation PLC 69,566 219
GlaxoSmithKline PLC - ADR 85,055 1,899 Boeing Co. (The) 3,360 449
Johnson & Johnson 26,898 3,368 Brambles, Ltd. 17,649 181
Medikit Co., Ltd. 621 24 Canon, Inc. 16,429 465
Merck & Co., Inc. 11,201 657 Cobham PLC 293,732 665
Millennium Health LLC(Æ) 2,491 9 ComfortDelGro Corp., Ltd. 78,700 166
Nakanishi, Inc. 3,320 115 CSX Corp. 3,515 100
Novartis AG 17,563 1,454 Cummins, Inc. 2,364 290
Pfizer, Inc. 78,383 2,892 Danone SA 17,905 1,377
Protek OJSC(Æ) 42,289 53 Delta Air Lines, Inc. 602 23
Roche Holding AG 3,266 834 Deutsche Post AG 9,502 284
Sanofi - ADR 18,190 1,547 Diana Shipping, Inc.(Æ) 30,597 80
Sonic Healthcare, Ltd. 10,684 187 Eaton Corp. PLC 3,642 231
Stryker Corp. 4,005 466 Emerson Electric Co. 9,411 526
Takeda Pharmaceutical Co., Ltd. 4,700 209 Ferrovial SA 12,355 255
UnitedHealth Group, Inc. 288 41 Flughafen Zuerich AG 3,524 660
Veeva Systems, Inc. Class A(Æ) 2,216 84 G4S PLC 112,689 277
      15,402 General Electric Co. 4,749 148
        Golden Ocean Group, Ltd. 124,865 85
Materials and Processing - 1.3%       Graco, Inc. 647 48
Agrium, Inc. 1,863 169 Groupe Eurotunnel SE 52,174 542
Amcor, Ltd. Class A 20,225 231 Grupo Aeroportuario del Pacifico SAB de 4,132 406
Barrick Gold Corp. 18,231 398 CV - ADR        
BASF SE 3,604 283 Guangshen Railway Co., Ltd. Class H 504,000 247
Cameco Corp. Class A 60,513 578 Hamburger Hafen und Logistik AG 16,283 260
Dongyue Group(Æ) 122,000 22 Honeywell International, Inc. 248 29
Dow Chemical Co. (The) 8,391 450 Hutchison Port Holdings Trust Class U 462,700 221
Dundee Precious Metals, Inc.(Æ) 82,229 247 Japan Steel Works, Ltd. (The) 140,000 625
Gabriel Resources, Ltd.(Æ) 541,399 278 Jiangsu Expressway Co., Ltd. Class H 118,000 167
Impala Platinum Holdings, Ltd.(Æ) 65,181 289 Kamigumi Co., Ltd. 18,000 162
Ivanhoe Mines, Ltd. Class A(Æ) 269,840 296 KBR, Inc. 5,063 71
James Hardie Industries PLC 11,870 197 Kitagawa Industries Co., Ltd.(Æ) 14,131 162
Kingboard Laminates Holdings, Ltd. 124,500 79 Kurita Water Industries, Ltd. 6,200 137
Kinross Gold Corp.(Æ) 100,451 519 Lockheed Martin Corp. 3,322 840
Lundin Gold, Inc.(Æ) 77,905 335 Luks Group Vietnam Holdings Co., Ltd. 112,000 39
LyondellBasell Industries NV Class A 174 13 Macquarie Infrastructure Corp. 9,232 708
Masco Corp. 1,085 40 Meggitt PLC 106,375 616
Mosaic Co. (The) 10,293 278 Mitsubishi Corp. 20,100 344
New Gold, Inc.(Æ) 20,843 108 Mitsui & Co., Ltd. 50,100 585
Newcrest Mining, Ltd. 45,605 877 MTR Corp., Ltd. 39,000 221
Nippon Fine Chemical Co., Ltd. 22,141 169 Nestle SA 13,334 1,069
Nitto FC Co., Ltd. 23,985 194 NewOcean Energy Holdings, Ltd. 48,000 14
Northern Dynasty Minerals, Ltd.(Æ) 190,615 104 Oesterreichische Post AG 6,902 241
Novagold Resources, Inc.(Æ) 18,805 131 OHL Mexico SAB de CV 89,588 122
Packaging Corp. of America 1,477 110 Organo Corp. 41,000 160
Royal Gold, Inc. 6,261 529 Orkla ASA 58,507 544
Siemens AG 2,800 304 Park24 Co., Ltd. 12,000 407
        Promotora y Operadora de        
Silver Wheaton Corp. 14,451 403   7,130 83
Tikkurila Oyj 11,326 218 Infraestructura SAB de CV        
        Raytheon Co. 2,098 293
Turquoise Hill Resources, Ltd.(Æ) 78,251 279 RR Donnelley & Sons Co. 24,764 444
USG Corp.(Æ) 2,937 83 Safe Bulkers, Inc.(Æ) 44,849 49
      8,211 Secom Joshinetsu Co., Ltd. 8,702 291
        SIA Engineering Co., Ltd. 83,600 231
Producer Durables - 4.0%       Singapore Airlines, Ltd. 23,100 190
3M Co. 2,276 406 Skanska AB Class B 11,692 248
Abertis Infraestructuras SA 25,164 395 SkyWest, Inc. 3,481 100
Accenture PLC Class A 3,877 437 Tecnicas Reunidas SA 1,740 54
Aena SA(Þ) 2,809 405 Transurban Group - ADR 121,231 1,158
Alaska Air Group, Inc. 475 32 Trinity Industries, Inc. 4,665 108

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 289

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
    Amount ($) Value     Amount ($) Value
    or Shares $     or Shares $
Tsakos Energy Navigation, Ltd. 19,220 98 Buckeye Partners, LP 2,342 169
UniFirst Corp. 3,796 444 Canadian Natural Resources, Ltd. 7,715 234
Union Pacific Corp. 2,049 191 Centrais Eletricas Brasileiras SA(Æ) 111,141 604
United Parcel Service, Inc. Class B 6,314 683 CenturyLink, Inc. 8,959 282
United Technologies Corp. 2,602 280 CMS Energy Corp. 6,250 282
Vinci SA 4,722 358 Contact Energy, Ltd. 92,854 362
Waste Management, Inc. 3,449 228 Deutsche Telekom AG 11,923 203
West Japan Railway Co. 4,300 266 Dominion Resources, Inc. 6,445 503
Wharf Holdings, Ltd. (The) 23,000 159 Duke Energy Corp. 7,151 612
      26,009 Edison International 6,518 504
        Electricite de France SA 48,605 635
Technology - 3.0%       Enagas SA 12,657 385
Alphabet, Inc. Class A(Æ) 2,469 1,954 Enbridge, Inc. 14,928 614
Alphabet, Inc. Class C(Æ) 177 136 Engie SA 52,763 867
Analog Devices, Inc. 3,526 225 Entergy Corp. 5,382 438
Apple, Inc. 4,794 500 Exelon Corp. 28,627 1,067
AVX Corp. 13,641 186 Federal Grid PJSC 227,046,289 553
BCE, Inc. 18,495 886 Gas Natural SDG SA 9,769 202
Broadcom, Ltd. 361 59 Keyera Corp. 10,865 312
CA, Inc. 5,996 208 KT Corp. 13,223 375
CDW Corp. 1,082 46 Level 3 Communications, Inc.(Æ) 2,768 140
Cellnex Telecom SAU(Þ) 9,241 163 MEG Energy Corp. Class A(Æ) 54,730 232
Cisco Systems, Inc. 22,031 673 Meridian Energy, Ltd. 28,045 57
Corning, Inc. 8,396 187 Mobile TeleSystems PJSC 37,285 142
Cosel Co., Ltd. 35,039 395 National Grid PLC 80,716 1,158
Ei Towers SpA(Æ) 2,962 160 NextEra Energy, Inc. 7,394 949
Electronic Arts, Inc.(Æ) 1,299 99 NiSource, Inc. 5,683 146
Facebook, Inc. Class A(Æ) 3,298 409 Pattern Energy Group, Inc. Class A 7,767 189
Hua Hong Semiconductor, Ltd.(Þ) 93,000 87 Pembina Pipeline Corp. 11,221 327
Icom, Inc. 9,943 206 PG&E Corp. 9,842 629
Intel Corp. 13,523 471 Pinnacle West Capital Corp. 3,379 267
International Business Machines Corp. 3,571 574 Power Assets Holdings, Ltd. 48,500 476
Japan Digital Laboratory Co., Ltd. 9,000 124 PPL Corp. 40,315 1,520
Lectra 24,887 412 RusHydro PJSC 14,137,688 152
Microchip Technology, Inc. 8,594 478 RusHydro PJSC - ADR 355,695 380
Microsoft Corp. 39,587 2,244 Scottish & Southern Energy PLC 13,439 270
Nam Tai Property, Inc. 10,223 55 Sempra Energy 3,924 439
NTT DOCOMO, Inc. 10,039 272 Singapore Telecommunications, Ltd. 172,766 536
NVC Lighting Holdings, Ltd. 567,000 61 Snam Rete Gas SpA 110,431 639
O2 Czech Republic AS 50,122 489 Southern Co. (The) 4,769 255
Oracle Corp. 55,127 2,262 Spark Infrastructure Group 100,840 201
QUALCOMM, Inc. 11,967 749 Swisscom AG 775 381
Rogers Communications, Inc. Class B 30,319 1,339 Telenor ASA 18,332 306
Sabre Corp. 6,318 184 Telia Co. AB 9,315 42
Sanshin Electronics Co., Ltd. 8,900 79 Telstra Corp., Ltd. 160,628 705
SBA Communications Corp. Class A(Æ) 844 97 TELUS Corp. 13,953 467
Spark New Zealand, Ltd. 16,260 46 Terna Rete Elettrica Nazionale SpA 86,695 472
StarHub, Ltd. 115,500 339 Tokyo Gas Co., Ltd. 17,000 72
Symantec Corp. 7,699 157 TransCanada Corp. 21,032 975
Taiwan Semiconductor Manufacturing       United Utilities Group PLC 15,380 207
Co., Ltd. - ADR 10,117 281 Verizon Communications, Inc. 18,282 1,013
Telesites SAB de CV(Æ) 68,454 41 WEC Energy Group, Inc. 18,850 1,224
Texas Instruments, Inc. 9,148 638 Xcel Energy, Inc. 6,477 285
Vodafone Group PLC 449,690 1,368       27,246
VTech Holdings, Ltd. 4,853 53        
Yandex NV Class A(Æ) 8,616 187 Total Common Stocks      
      19,579 (cost $167,567)     172,192
        Preferred Stocks - 3.2%      
Utilities - 4.2%       Consumer Discretionary - 0.2%      
Aguas Andinas SA Class A 174,507 106 CHS, Inc. 24,993 759
Ameren Corp. 7,130 374 eBay, Inc. 18,400 493
America Movil SAB de CV 1,619,372 931 GMAC Capital Trust I 10,399 264
American Water Works Co., Inc. 3,315 274       1,516
AT&T, Inc. 22,151 959 Energy - 0.0%      
Atmos Energy Corp. 1,835 146 Southern Co. (The) 4,700 132

 

See accompanying notes which are an integral part of this quarterly report.

290 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)      
    Principal Fair       Principal   Fair  
    Amount ($) Value   Amount ($)   Value  
    or Shares $       or Shares   $  
        Qwest Corp.   9,200   236  
Financial Services - 2.7%       SCE Trust IV   2,592   77  
Aegon NV 5,000 133 SCE Trust V   2,997   87  
Allstate Corp. (The) 1,750 50           2,205  
American Financial Group, Inc. 9,300 252 Total Preferred Stocks            
American Homes 4 Rent 34,000 881              
Ares Management, LP 24,000 626 (cost $20,731)         21,307  
Bank of America Corp. 25,370 674              
Barclays Bank PLC 19,429 504 Options Purchased - 0.3%            
Capital One Financial Corp. 4,500 124 (Number of Contracts)            
Charles Schwab Corp. (The) 13,100 360 S&P 500 Index            
Chesapeake Lodging Trust 2,000 53 Oct 2016 2,147.45 Put (20,008) USD   42,966 (ÿ) 994  
        Nov 2016 2,147.45 Put (10,004) USD   21,483 (ÿ) 636  
CoBank Citigroup, ACB Inc. 19,918 1,200 123 569 Total Options Purchased            
Colony Capital, Inc. 2,000 52 (cost $1,721)         1,630  
DDR Corp. 35,383 916              
Digital Realty Trust, Inc. 9,000 236 Short-Term Investments - 23.2%            
DuPont Fabros Technology, Inc. 9,000 253 BNZ International Funding, Ltd.            
Endurance Specialty Holdings, Ltd. 8,000 225 Series GMTN            
Farm Credit Bank of Texas 13,796 1,599 4.000% due 03/08/17   120   137  
Fifth Third Bancorp 1,500 46 Brazil Letras do Tesouro Nacional            
First Republic Bank 4,806 133 Series LTN            
Goldman Sachs Group, Inc. (The) 9,147 247 Zero coupon due 01/01/17   530   155  
Hanover Insurance Group, Inc. (The) 14,500 377 Hungary Government Bond            
Hartford Financial Services Group, Inc.       Series 17/B            
(The) 605 19 6.750% due 02/24/17 HUF 15,280   57  
HSBC Holdings PLC 961 26 Optima Specialty Steel, Inc.            
Huntington Bancshares, Inc. 8,425 233 12.500% due 12/15/16 (Å)   1,000   850  
ING Groep NV 13,102 345 Petroleos de Venezuela SA            
JPMorgan Chase & Co. 10,800 293 Series REGS            
KKR & Co. LP 18,400 485 5.250% due 04/12/17   10   7  
Morgan Stanley 22,634 647 Russell U.S. Cash Management Fund   150,192,814 (8) 150,193  
National Retail Properties, Inc. 1,824 57 Russian Federal Bond - OFZ            
National Westminster Bank PLC 4,824 127 Series 6206            
NorthStar Realty Finance Corp. 11,000 279 7.400% due 06/14/17   6,210   92  
PartnerRe, Ltd. 12,481 344 Sprint Communications, Inc.            
Pennsylvania Real Estate Investment       9.125% due 03/01/17   320   330  
Trust 1,939 51 Texas Competitive Electric Holdings            
PS Business Parks, Inc. 8,490 223 Co. LLC            
Public Storage 11,138 523 1.000% due 11/07/16 (Ê)(v)   443   444  
Regions Financial Corp. 8,723 252 Turkey Government Bond            
Reinsurance Group of America, Inc. 13,300 356 Zero coupon due 12/14/16   300   97  
Retail Properties of America, Inc. 1,396 38 Total Short-Term Investments            
STAG Industrial, Inc. 2,537 69 (cost $152,463)         152,362  
State Street Corp. 4,675 129 Total Investments 105.2%            
Stifel Financial Corp. 21,925 577 (identified cost $686,896)         690,595  
Summit Hotel Properties, Inc. 9,653 250              
 
Sunstone Hotel Investors, Inc. 13,491 358 Other Assets and Liabilities,            
Taubman Centers, Inc. 4,813 126 Net - (5.2%)            
Urstadt Biddle Properties, Inc. 2,125 56           (34,008 )
US Bancorp 1,000 31              
Validus Holdings, Ltd. 14,700 375 Net Assets - 100.0%         656,587  
VEREIT, Inc. 47,530 924              
Vornado Realty Trust 1,500 39              
Wells Fargo & Co. 39,779 1,083              
WR Berkley Corp. 22,692 589              
      17,337              
Technology - 0.0%                    
Qwest Corp. 4,500 117              
 
Utilities - 0.3%                    
Centrais Eletricas Brasileiras SA 27,551 189              
Dominion Resources, Inc. 14,800 379              
DTE Energy Co. 12,628 320              
Integrys Holding, Inc. 19,000 512              
NextEra Energy Capital Holdings, Inc. 15,900 405              

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 291

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Restricted Securities                        
 
Amounts in thousands (except share and cost per unit amounts)                      
 
        Principal   Cost per   Cost   Fair Value  
% of Net Assets Acquisition     Amount ($)   Unit   (000 ) (000 )
Securities Date     or shares   $   $   $  
2.4%                        
Australia & New Zealand Banking Group, Ltd. - ADR 07/14/16   400,000 106.30 425 435  
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. 03/15/16   22,000 100.00 22 22  
Benefit Street Partners CLO III, Ltd. 03/15/16   500,000 66.85 334 434  
Benefit Street Partners CLO IX, Ltd. 06/16/16   500,000 86.04 430 436  
BHP Billiton Finance USA, Ltd. 07/20/16   400,000 108.75 435 433  
Blue Coat Holdings, Inc. 05/19/15   250,000 100.00 250 281  
BNP Paribas SA 07/14/16   200,000 110.25 221 221  
Cloud Crane LLC 07/15/16   630,000 101.79 641 649  
Constellis Holdings LLC / Constellis Finance Corp. 05/06/15   500,000 99.61 498 488  
Credit Suisse Group AG 07/14/16   200,000 102.22 204 207  
Diamond 1 Finance Corp. / Diamond 2 Finance Corp 06/08/16   72,000 100.00 72 75  
Diamond 1 Finance Corp. / Diamond 2 Finance Corp 06/08/16   51,000 100.00 51 55  
Dresdner Funding Trust I 07/18/16   300,000 117.85 354 354  
Extraction Oil & Gas Holdings LLC / Extraction Finance Corp. 07/13/16   230,000 100.00 230 230  
Foresight Energy LLC / Foresight Energy Finance Corp. 03/31/14   2,510,000 96.51 2,422 1,770  
Foundational Building Materials, LLC 2nd Lien Term Loan 10/07/15   590,000 94.00 555 589  
Harland Clarke Holdings Corp. 02/02/16   25,000 85.09 21 24  
HSBC Capital Funding, LP 07/14/16   400,000 145.94 584 588  
International Automotive Components Group SA 05/09/16   62,000 94.36 59 61  
International Wire Group, Inc. 07/12/16   670,000 96.59 647 645  
Iron Mountain US Holdings, Inc. 05/24/16   101,000 100.00 101 102  
Iron Mountain, Inc. 05/24/16   101,000 100.00 101 105  
Mallinckrodt International Finance SA / Mallinckrodt CB LLC 09/09/15   28,000 100.00 28 27  
Match Group, Inc. 05/24/16   152,000 100.00 152 162  
Optima Specialty Steel, Inc. 09/22/15   1,000,000 98.48 985 850  
Patterson Co. 2nd Lien Term Loan 08/14/15   590,000 99.00 584 575  
Queensland Treasury Corp. 07/15/16 AUD 105,000 85.32 90 91  
Radio One, Inc. 01/02/16   25,000 92.02 23 25  
Regatta V Funding, Ltd. 03/11/16   250,000 73.67 184 211  
Royal Holdings, Inc. Term Loan 06/12/15   390,000 99.47 388 380  
Solera LLC / Solera Finance, Inc. 02/29/16   200,000 95.16 190 216  
TIAA CLO I, Ltd. 06/03/16   279,000 91.99 257 251  
Transelec SA 07/07/16   40,000 98.86 40 40  
Wayne Merger Sub LLC 07/15/16   2,690,000 98.91 2,661 2,680  
Xerium Technologies, Inc. 07/26/16   810,000 98.54 798 806  
XPO Logistics, Inc. 07/15/16   1,350,000 99.00 1,337 1,337  
                      15,855  
For a description of restricted securities see note 7 in the Notes to Quarterly Report.                

 

Futures Contracts                
 
Amounts in thousands (except contract amounts)                
                Unrealized
                Appreciation
    Number of   Notional   Expiration (Depreciation)
    Contracts   Amount   Date $
Long Positions                
Amsterdam Index Futures 8 EUR 714 08/16 5
CAC40 Euro Index Futures 47 EUR 2,086 08/16 56
DAX Index Futures 8 EUR 2,065 09/16 112
Euro STOXX 50 Index Futures 89 EUR 2,655 09/16 166
Euro-Bund Futures 2 EUR 336 09/16 8
FTSE/MIB Index Futures 6 EUR 505 09/16 12
IBEX 35 Index Futures 8 EUR 686 08/16 11
MSCI EAFE Mini Index Futures 198 USD 16,634 09/16 297
MSCI Emerging Markets Mini Index Futures 42 USD 1,851 09/16 47
OMXS30 Index Futures 34 SEK 4,711 08/16 11
Russell 1000 Mini Index Futures 11 USD 1,321 09/16 19

 

See accompanying notes which are an integral part of this quarterly report.

292 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                              
 
Amounts in thousands (except contract amounts)                            
S&P 500 E-Mini Index Futures       187 USD 20,273 09/16 297  
S&P Consumer Discretionary Select Sector Index Futures       68 USD 5,578 09/16 93  
S&P Financial Select Sector Index Futures       385 USD 22,696 09/16 227  
S&P Mid 400 E-Mini Index Futures         11 USD 1,713 09/16 34  
TOPIX Index Futures         31 JPY 411,835 09/16 42  
United States 2 Year Treasury Note Futures         82 USD 17,958 09/16 16  
United States 5 Year Treasury Note Futures       250 USD 30,504 09/16 79  
United States 10 Year Treasury Note Futures       156 USD 20,755 09/16 82  
United States Long Bond Futures         12 USD 2,093 09/16 30  
Short Positions                              
Dow Jones U.S. Real Estate Index Futures       551 USD 18,492 09/16 (1,109 )
FTSE 100 Index Futures         47 GBP 3,138 09/16 (282 )
MSCI Emerging Markets Mini Index Futures         50 USD 2,204 09/16 (183 )
MSCI Singapore IX ETS Index Futures         44 SGD 1,375 08/16 18  
S&P Energy Select Sector Index Futures         45 USD 3,029 09/16 74  
S&P Utilities Select Sector Index Futures       185 USD 9,714 09/16 (264 )
S&P/TSX 60 Index Futures         70 CAD 11,839 09/16 (220 )
SPI 200 Index Futures         34 AUD 4,691 09/16 (188 )
United States 10 Year Treasury Note Futures         42 USD 5,588 09/16 (111 )
United States Ultra Bond Futures         4 USD 762 09/16 (33 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)                     (654 )
 
Options Written                              
Amounts in thousands (except contract amounts)                            
    Number of   Strike       Notional   Expiration Fair Value  
  Call/Put Contracts   Price       Amount   Date $  
Euro STOXX 50 Index Put 5,120   2,596.70   EUR 14,864 09/16/16 (63 )
S&P 500 Index Put 40,016   1,908.84   USD 76,384 10/31/16 (454 )
S&P 500 Index Put 20,008   1,908.84   USD 38,192 11/30/16 (371 )
Total Liability for Options Written (premiums received $1,497)                         (888 )
 
Transactions in options written contracts for the period ended July 31, 2016 were as follows:          
          Number of   Premiums        
            Contracts     Received        
Outstanding October 31, 2015             —   $ —        
Opened         653,925 2,673      
Closed       (572,694 ) (603 )      
Expired         (16,087 ) (573 )      
Outstanding July 31, 2016         65,144 $ 1,497      
 
 
 
Foreign Currency Exchange Contracts                            
Amounts in  thousands                              
                            Unrealized  
                            Appreciation  
      Amount     Amount     (Depreciation)  
Counterparty     Sold     Bought   Settlement Date $  
Bank of America   USD   10   EUR     9   08/01/16 —  
Bank of America   USD   13   EUR     12   08/01/16 —  
Bank of America   USD   26   EUR     23   08/01/16 —  
Bank of America   USD   35   EUR     32   08/01/16 1  
Bank of America   USD   45   EUR     41   08/01/16 1  
Bank of America   USD   12   EUR     11   08/02/16 —  
Bank of America   USD   12   EUR     10   08/03/16 —  
Bank of America   USD   4,230   EUR     3,710   09/21/16 (74 )
Bank of America   USD   2,014   GBP     1,380   09/21/16 (186 )
Bank of America   USD   8   JPY     783   08/03/16 —  
Bank of America   USD   438   JPY     46,880   09/21/16 22  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 293

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD 1,805 JPY 189,790 09/21/16 59  
Bank of America USD 142 SEK 1,150 09/21/16 (7 )
Bank of America AUD 14 USD 11 08/03/16 —  
Bank of America AUD 21 USD 16 08/03/16 —  
Bank of America AUD 560 USD 416 09/21/16 (9 )
Bank of America AUD 720 USD 535 09/21/16 (12 )
Bank of America AUD 1,310 USD 998 09/21/16 4  
Bank of America CAD 855 USD 669 09/21/16 14  
Bank of America CAD 1,300 USD 1,017 09/21/16 21  
Bank of America CAD 4,510 USD 3,498 09/21/16 43  
Bank of America CHF 85 USD 88 09/21/16 —  
Bank of America EUR 1 USD 1 08/01/16 —  
Bank of America EUR 11 USD 12 08/01/16 —  
Bank of America EUR 15 USD 16 08/01/16 —  
Bank of America EUR 6 USD 7 08/02/16 —  
Bank of America EUR 15 USD 17 08/02/16 —  
Bank of America EUR 900 USD 1,003 09/21/16 (5 )
Bank of America EUR 2,835 USD 3,232 09/21/16 56  
Bank of America GBP 1,350 USD 1,800 09/21/16 12  
Bank of America GBP 2,390 USD 3,488 09/21/16 321  
Bank of America NOK 4,035 USD 497 09/21/16 18  
Bank of America SEK 1,805 USD 223 09/21/16 11  
Bank of America SGD 675 USD 498 09/21/16 (5 )
Bank of New York USD 9 JPY 959 08/01/16 —  
Barclays USD 50 BRL 160 08/02/16 —  
Barclays USD 144 BRL 473 08/02/16 2  
Barclays USD 437 BRL 1,415 08/02/16 —  
Barclays USD 76 COP 225,425 08/18/16 (2 )
Barclays USD 12 HUF 3,571 08/18/16 —  
Barclays USD 20 IDR 263,200 08/18/16 —  
Barclays USD 64 MXN 1,181 08/18/16 (1 )
Barclays USD 20 MYR 80 08/15/16 —  
Barclays USD 150 MYR 592 08/15/16 (3 )
Barclays USD 55 PEN 182 08/18/16 (1 )
Barclays USD 170 PEN 559 08/18/16 (3 )
Barclays USD 10 PHP 462 08/18/16 —  
Barclays USD 76 PLN 301 08/18/16 2  
Barclays USD 203 THB 7,159 09/19/16 2  
Barclays USD 154 TRY 450 08/18/16 (4 )
Barclays BRL 160 USD 47 08/02/16 (3 )
Barclays BRL 473 USD 146 08/02/16 —  
Barclays BRL 1,415 USD 434 08/02/16 (3 )
Barclays BRL 473 USD 142 09/02/16 (2 )
Barclays CLP 49,456 USD 75 08/18/16 (1 )
Barclays IDR 1,113,591 USD 85 08/18/16 —  
Barclays IDR 4,743,303 USD 362 08/18/16 —  
Barclays RON 802 USD 196 08/18/16 (5 )
Barclays TRY 80 USD 27 08/18/16 —  
Barclays TRY 330 USD 110 08/18/16 —  
Barclays ZAR 3,432 USD 236 08/18/16 (11 )
BNP Paribas USD 4,230 EUR 3,710 09/21/16 (73 )
BNP Paribas USD 2,015 GBP 1,380 09/21/16 (187 )
BNP Paribas USD 438 JPY 46,880 09/21/16 22  
BNP Paribas USD 142 SEK 1,150 09/21/16 (7 )
BNP Paribas AUD 560 USD 416 09/21/16 (9 )
BNP Paribas AUD 720 USD 534 09/21/16 (12 )
BNP Paribas CAD 855 USD 669 09/21/16 14  
BNP Paribas CAD 1,300 USD 1,017 09/21/16 21  
BNP Paribas CHF 85 USD 88 09/21/16 —  
BNP Paribas EUR 2,835 USD 3,232 09/21/16 56  
BNP Paribas GBP 2,390 USD 3,490 09/21/16 323  
BNP Paribas NOK 4,035 USD 497 09/21/16 19  
BNP Paribas SEK 1,805 USD 223 09/21/16 12  

 

See accompanying notes which are an integral part of this quarterly report.

294 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
BNP Paribas SGD 675 USD 498 09/21/16 (5 )
Citibank CLP 221,918 USD 340 08/18/16 2  
Credit Suisse USD 277 EUR 250 09/21/16 3  
Credit Suisse USD 440 EUR 395 09/21/16 2  
Credit Suisse USD 886 EUR 780 09/21/16 (11 )
JPMorgan Chase USD 50 BRL 160 08/02/16 —  
JPMorgan Chase USD 144 BRL 473 08/02/16 2  
JPMorgan Chase USD 75 COP 225,425 08/18/16 (2 )
JPMorgan Chase USD 130 COP 401,462 08/18/16 —  
JPMorgan Chase USD 240 COP 705,840 08/18/16 (10 )
JPMorgan Chase USD 113 HUF 31,974 08/18/16 2  
JPMorgan Chase USD 64 MXN 1,181 08/18/16 (1 )
JPMorgan Chase USD 59 MYR 237 08/15/16 (1 )
JPMorgan Chase USD 76 PEN 249 08/18/16 (1 )
JPMorgan Chase USD 76 PLN 301 08/18/16 2  
JPMorgan Chase USD 20 RUB 1,294 08/18/16 —  
JPMorgan Chase USD 50 RUB 3,317 08/18/16 —  
JPMorgan Chase USD 145 THB 5,116 09/19/16 1  
JPMorgan Chase USD 40 TRY 117 08/18/16 (1 )
JPMorgan Chase USD 154 TRY 450 08/18/16 (4 )
JPMorgan Chase BRL 160 USD 47 08/02/16 (3 )
JPMorgan Chase BRL 473 USD 146 08/02/16 —  
JPMorgan Chase BRL 473 USD 142 09/02/16 (2 )
JPMorgan Chase CLP 49,456 USD 75 08/18/16 (1 )
JPMorgan Chase IDR 1,113,591 USD 85 08/18/16 —  
JPMorgan Chase TRY 72 USD 24 08/18/16 —  
JPMorgan Chase ZAR 3,432 USD 236 08/18/16 (10 )
Standard Chartered USD 50 BRL 160 08/02/16 —  
Standard Chartered USD 50 BRL 166 08/02/16 1  
Standard Chartered USD 144 BRL 473 08/02/16 2  
Standard Chartered USD 12 HUF 3,571 08/18/16 —  
Standard Chartered USD 113 HUF 31,974 08/18/16 2  
Standard Chartered USD 50 MXN 938 08/18/16 —  
Standard Chartered USD 64 MXN 1,181 08/18/16 (1 )
Standard Chartered USD 590 MXN 10,842 08/18/16 (12 )
Standard Chartered USD 76 PLN 301 08/18/16 2  
Standard Chartered USD 220 PLN 873 08/18/16 4  
Standard Chartered USD 97 THB 3,430 09/19/16 1  
Standard Chartered USD 154 TRY 450 08/18/16 (4 )
Standard Chartered USD 670 TRY 1,945 08/18/16 (21 )
Standard Chartered BRL 160 USD 47 08/02/16 (3 )
Standard Chartered BRL 166 USD 51 08/02/16 —  
Standard Chartered BRL 473 USD 146 08/02/16 —  
Standard Chartered BRL 473 USD 142 09/02/16 (2 )
Standard Chartered CLP 49,456 USD 75 08/18/16 (1 )
Standard Chartered IDR 1,113,591 USD 85 08/18/16 —  
Standard Chartered RON 978 USD 242 08/18/16 (3 )
Standard Chartered RUB 351 USD 5 08/18/16 —  
Standard Chartered TRY 193 USD 64 08/18/16 —  
Standard Chartered ZAR 1,935 USD 140 08/04/16 —  
State Street EUR 900 USD 997 09/21/16 (11 )
State Street JPY 100,520 USD 1,003 09/21/16 16  
UBS USD 50 BRL 160 08/02/16 —  
UBS USD 144 BRL 473 08/02/16 2  
UBS USD 179 CHF 175 09/21/16 2  
UBS USD 262 CHF 250 09/21/16 (3 )
UBS USD 352 JPY 37,000 09/21/16 11  
UBS USD 499 JPY 53,000 09/21/16 23  
UBS USD 64 MXN 1,181 08/18/16 (1 )
UBS USD 100 RON 400 08/03/16 —  
UBS USD 211 TRY 630 08/03/16 —  
UBS BRL 160 USD 47 08/02/16 (3 )
UBS BRL 473 USD 146 08/02/16 —  

 

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 295

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                  
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount   Amount         (Depreciation)  
Counterparty   Sold   Bought   Settlement Date $  
UBS BRL 473 USD 142     09/02/16 (2 )
UBS IDR 1,113,591 USD 85     08/18/16 —  
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts             392  
 
Credit Default Swap Contracts                  
 
Amounts in thousands                    
Credit Indices                    
            Fund (Pays)/        
            Receives   Termination Fair Value  
Reference Entity Counterparty   Notional Amount   Fixed Rate   Date $  
CDX Emerging Markets Index Morgan Stanley   USD 19,600 (1.000 %) 06/20/21 1,400  
CDX NA High Yield Index Morgan Stanley   USD 79,000 5.000 % 06/20/21 3,207  
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $5,235               4,607  

 

Presentation of Portfolio Holdings                  
Amounts in thousands                      
        Fair Value            
                  Practical    
Portfolio Summary   Level 1   Level 2   Level 3   Expedient (a)   Total
Long-Term Investments                      
Asset-Backed Securities $ — $ 362 $   — $ — $ 362
Corporate Bonds and Notes — 120,305   90 — 120,395
International Debt — 60,594   — — 60,594
Loan Agreements — 109,431   — — 109,431
Mortgage-Backed Securities — 219   — — 219
Non-US Bonds — 47,268   — — 47,268
United States Government Treasuries — 4,835   — — 4,835
Common Stocks                      
Consumer Discretionary 4,322 8,430   — — 12,752
Consumer Staples   12,133   5,707     —   —   17,840
Energy   9,726   3,605     103   —   13,434
Financial Services   21,871   9,848     —   —   31,719
Health Care   8,659   6,743     —   —   15,402
Materials and Processing   5,348   2,841     22   —   8,211
Producer Durables   8,941   17,068     —   —   26,009
Technology   15,325   4,254     —   —   19,579
Utilities   17,848   9,398     —   —   27,246
Preferred Stocks 21,307 —   — — 21,307
Options Purchased 1,630 —   — — 1,630
Short-Term Investments — 2,169   — 150,193 152,362
Total Investments 127,110 413,077   215 150,193 690,595
 
Other Financial Instruments                      
Assets                      

 

See accompanying notes which are an integral part of this quarterly report.

296 Russell Multi-Strategy Income Fund

 

Russell Investment Company
Russell Multi-Strategy Income Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
Amounts in thousands                              
          Fair Value                
                      Practical        
Portfolio Summary   Level 1     Level 2     Level 3   Expedient (a)   Total  
Futures Contracts 1,736   —     — —   1,736  
Foreign Currency Exchange Contracts 3   1,133     — —   1,136  
Credit Default Swap Contracts —   4,607     — —   4,607  
Liabilities                              
Futures Contracts (2,390 ) —     — —   (2,390 )
Options Written (888 ) —     — —   (888 )
Foreign Currency Exchange Contracts —   (744 )   — —   (744 )
Total Other Financial Instruments* $ (1,539 ) $ 4,996   $   — $ — $   3,457  

 

*    Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in
the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July
31, 2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Russell Multi-Strategy Income Fund 297

 

Russell Investment Company
Russell Strategic Call Overwriting Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 95.8%       Staples, Inc. 2,745 25
Consumer Discretionary - 14.0%       Starbucks Corp. 7,452 433
Aaron's, Inc. Class A 815 19 TEGNA, Inc. 1,865 41
Advance Auto Parts, Inc. 343 58 Tempur Sealy International, Inc.(Æ) 219 17
Amazon.com, Inc.(ì)(Æ) 1,685 1,279 Tiffany & Co. 1,156 75
AMC Networks, Inc. Class A(Æ) 208 11 Time Warner, Inc. 4,934 378
AutoNation, Inc.(Æ) 793 42 TJX Cos., Inc. 4,732 387
Best Buy Co., Inc. 2,196 74 TripAdvisor, Inc.(Æ) 769 54
CarMax, Inc.(Æ) 2,143 125 Twenty-First Century Fox, Inc. Class A 10,120 270
Charter Communications, Inc. Class A(Æ) 215 50 Urban Outfitters, Inc.(Æ) 1,573 47
Comcast Corp. Class A(ì) 14,568 980 Visteon Corp.(Æ) 226 16
Costco Wholesale Corp. 2,784 465 Wal-Mart Stores, Inc.(ì) 8,670 633
Dick's Sporting Goods, Inc. 336 17 Walt Disney Co. (The)(ì) 9,323 895
Dillard's, Inc. Class A 692 47 Whirlpool Corp. 556 107
Dollar General Corp. 2,083 197 Williams-Sonoma, Inc. 266 14
DR Horton, Inc. 2,712 89 Wyndham Worldwide Corp. 1,531 109
DSW, Inc. Class A 1,598 39 Wynn Resorts, Ltd. 346 34
eBay, Inc.(Æ) 5,552 173       11,716
Expedia, Inc. 692 81        
Fitbit, Inc. Class A(Æ) 1,100 15 Consumer Staples - 8.6%      
Ford Motor Co. 21,357 270 Altria Group, Inc.(ì) 9,809 664
Fortune Brands Home & Security, Inc. 621 39 Bunge, Ltd. 647 43
Fossil Group, Inc.(Æ) 1,030 33 Campbell Soup Co. 2,795 174
GameStop Corp. Class A 1,714 53 Coca-Cola Co. (The)(ì) 16,565 723
Gannett Co., Inc. 932 12 Colgate-Palmolive Co. 5,464 407
Gap, Inc. (The) 962 25 Constellation Brands, Inc. Class A 748 123
Gentex Corp. 3,254 57 CVS Health Corp. 6,712 622
Goodyear Tire & Rubber Co. (The) 2,724 78 GNC Holdings, Inc. Class A 545 11
GoPro, Inc. Class A(Æ) 2,433 31 Herbalife, Ltd.(Æ) 359 24
Graham Holdings Co. Class B 55 28 Hormel Foods Corp. 4,652 174
H&R Block, Inc. 2,631 63 Kimberly-Clark Corp. 2,584 335
Harman International Industries, Inc. 482 40 Kraft Heinz Co. (The) 3,305 286
Hasbro, Inc. 1,340 109 Molson Coors Brewing Co. Class B 1,487 152
Home Depot, Inc. (The)(ì) 8,950 1,237 Mondelez International, Inc. Class A 9,898 435
Interpublic Group of Cos., Inc. (The) 1,780 41 Nu Skin Enterprises, Inc. Class A 284 15
J Alexander's Holdings, Inc.(Æ) 1 — PepsiCo, Inc.(ì) 9,278 1,011
JC Penney Co., Inc.(Æ) 10,549 102 Philip Morris International, Inc.(ì) 6,587 660
Kohl's Corp. 1,153 48 Procter & Gamble Co. (The)(ì) 13,237 1,133
Lamar Advertising Co. Class A(ö) 451 31 Safeway, Inc. 4,648 2
Lear Corp. 1,030 117 Tyson Foods, Inc. Class A 2,568 189
Leggett & Platt, Inc. 680 36       7,183
Lennar Corp. Class A 954 45        
Liberty Interactive Corp. Class A(Æ) 1,594 43 Energy - 6.3%      
Liberty Ventures Class A(Æ) 226 8 Anadarko Petroleum Corp. 3,508 191
Macy's, Inc. 1,319 47 Apache Corp. 2,959 155
Madison Square Garden Co. (The) Class A(Æ) 107 20 Chesapeake Energy Corp.(Æ) 4,080 22
McDonald's Corp. 5,682 668 Chevron Corp.(ì) 9,365 960
Michael Kors Holdings, Ltd.(Æ) 852 44 ConocoPhillips 8,741 357
MSG Networks, Inc.(Æ) 323 5 Denbury Resources, Inc.(Æ) 5,120 15
Netflix, Inc.(Æ) 2,569 234 EQT Corp. 2,257 164
Newell Brands, Inc. 1,942 102 Exxon Mobil Corp.(ì) 19,040 1,694
News Corp. Class A 2,507 32 First Solar, Inc.(Æ) 501 23
Nike, Inc. Class B 8,514 472 Halliburton Co. 7,112 310
Penske Automotive Group, Inc. 414 16 Helmerich & Payne, Inc. 1,227 76
PulteGroup, Inc. 2,943 62 HollyFrontier Corp. 948 24
PVH Corp. 797 81 Noble Corp. PLC 1,228 9
Sally Beauty Holdings, Inc.(Æ) 375 11 NOW, Inc.(Æ) 904 17
Scripps Networks Interactive, Inc. Class A 597 39 Occidental Petroleum Corp. 4,488 335
Signet Jewelers, Ltd. 338 30 Rowan Cos. PLC Class A(Æ) 1,570 24
Skechers U.S.A., Inc. Class A(Æ) 475 11 Schlumberger, Ltd.(ì) 8,132 655

 

See accompanying notes which are an integral part of this quarterly report.

298 Russell Strategic Call Overwriting Fund

 

Russell Investment Company
Russell Strategic Call Overwriting Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
SM Energy Co. 785 21 Simon Property Group, Inc.(ö) 2,224 505
Southwestern Energy Co.(Æ) 2,804 41 SL Green Realty Corp.(ö) 803 95
Superior Energy Services, Inc.(Æ) 1,913 31 Synovus Financial Corp. 1,170 36
Tesoro Corp. 1,113 85 TD Ameritrade Holding Corp. 4,432 135
Williams Cos., Inc. (The) 2,901 70 Torchmark Corp. 2,397 148
      5,279 Total System Services, Inc. 2,598 132
        Unum Group 5,074 170
Financial Services - 17.1%       US Bancorp 9,816 414
Affiliated Managers Group, Inc.(Æ) 867 127 Visa, Inc. Class A(ì) 12,100 944
Alliance Data Systems Corp.(Æ) 375 87 Waddell & Reed Financial, Inc. Class A 2,936 54
American Express Co.(ì) 6,880 444 Weingarten Realty Investors(ö) 1,406 61
American International Group, Inc. 8,619 469 Wells Fargo & Co.(ì) 25,452 1,221
American Tower Corp.(ö) 1,802 209 Weyerhaeuser Co.(ö) 3,853 126
Apartment Investment & Management Co.       WR Berkley Corp. 1,829 106
Class A(ö) 2,311 106 XL Group, Ltd. 3,586 124
Assurant, Inc. 1,255 104 Zions Bancorporation 4,152 116
Bank of America Corp.(ì) 47,474 688       14,360
Berkshire Hathaway, Inc. Class B(ì)(Æ) 9,794 1,413        
CBL & Associates Properties, Inc.(ö) 1,254 15 Health Care - 13.1%      
CBRE Group, Inc. Class A(Æ) 2,909 83 Abbott Laboratories(ì) 7,702 345
Chimera Investment Corp.(ö) 445 7 AbbVie, Inc.(ì) 6,870 455
Cincinnati Financial Corp. 3,142 235 Aetna, Inc. 2,474 285
Citigroup, Inc.(ì) 12,560 550 Allscripts Healthcare Solutions, Inc.(Æ) 993 14
Comerica, Inc. 912 41 Amgen, Inc.(ì) 3,207 552
Credit Acceptance Corp.(Æ) 83 15 Baxter International, Inc. 3,771 181
Crown Castle International Corp.(ö) 1,419 138 Biogen, Inc.(Æ) 1,233 358
DDR Corp.(ö) 3,346 66 Bluebird Bio, Inc.(Æ) 618 35
Duke Realty Corp.(ö) 4,212 121 Bristol-Myers Squibb Co. 8,156 610
E*Trade Financial Corp.(Æ) 4,055 102 Bruker Corp. 746 19
Eaton Vance Corp. 3,867 146 Centene Corp.(Æ) 723 51
Equifax, Inc. 652 86 Community Health Systems, Inc.(Æ) 3,303 42
Federal Realty Investment Trust(ö) 676 115 Dentsply Sirona, Inc. 2,613 167
Federated Investors, Inc. Class B 2,001 63 Eli Lilly & Co. 5,710 473
Fidelity National Information Services, Inc. 1,695 135 Envision Healthcare Holdings, Inc.(Æ) 1,050 26
FNF Group 4,299 162 Express Scripts Holding Co.(Æ) 4,536 345
Genworth Financial, Inc. Class A(Æ) 4,514 13 Gilead Sciences, Inc.(ì) 5,828 463
Goldman Sachs Group, Inc. (The) 2,470 392 HCA Holdings, Inc.(Æ) 1,896 146
Huntington Bancshares, Inc. 11,657 111 Henry Schein, Inc.(Æ) 1,290 233
Intercontinental Exchange, Inc. 514 136 Hill-Rom Holdings, Inc. 428 23
JPMorgan Chase & Co.(ì) 17,526 1,121 IDEXX Laboratories, Inc.(Æ) 1,224 115
Kilroy Realty Corp.(ö) 1,430 105 Incyte Corp.(Æ) 500 45
Legg Mason, Inc. 2,165 74 Johnson & Johnson(ì) 11,765 1,473
LendingClub Corp.(Æ) 5,146 24 Medivation, Inc.(Æ) 848 54
Leucadia National Corp. 2,584 47 Medtronic PLC 7,884 691
Lincoln National Corp. 2,048 89 Merck & Co., Inc.(ì) 15,711 922
Macerich Co. (The)(ö) 665 59 Patterson Cos., Inc. 1,312 65
MasterCard, Inc. Class A 6,458 615 PerkinElmer, Inc. 2,078 118
MetLife, Inc. 6,203 265 Pfizer, Inc.(ì) 33,045 1,219
Nasdaq, Inc. 2,333 165 Puma Biotechnology, Inc.(Æ) 966 48
Navient Corp. 1,457 21 Quorum Health Corp.(Æ) 1,532 17
NorthStar Realty Europe Corp.(ö) 2,721 25 Regeneron Pharmaceuticals, Inc.(Æ) 412 175
Old Republic International Corp. 1,160 22 ResMed, Inc. 905 62
PayPal Holdings, Inc.(Æ) 5,552 207 Shire PLC - ADR 558 108
People's United Financial, Inc. 6,598 100 United Therapeutics Corp.(Æ) 369 45
Public Storage(ö) 857 205 UnitedHealth Group, Inc.(ì) 6,346 909
Raymond James Financial, Inc. 1,908 105 Varian Medical Systems, Inc.(Æ) 1,286 122
Realty Income Corp.(ö) 1,064 76       11,011
RenaissanceRe Holdings, Ltd. 1,137 134        
Santander Consumer USA Holdings, Inc.(Æ) 1,220 13 Materials and Processing - 3.1%      
SEI Investments Co. 2,715 122 Albemarle Corp. 1,165 98

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Call Overwriting Fund 299

 

Russell Investment Company
Russell Strategic Call Overwriting Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Ball Corp. 1,447 102 Snap-on, Inc. 769 121
Bemis Co., Inc. 1,486 76 Southwest Airlines Co. 2,791 103
Cabot Corp. 555 27 Spirit Airlines, Inc.(Æ) 374 16
Domtar Corp. 658 26 SPX Corp.(Æ) 1,176 18
Dow Chemical Co. (The) 6,661 358 SPX FLOW, Inc.(Æ) 525 14
EI du Pont de Nemours & Co. 5,336 369 Square, Inc. Class A(Æ) 1,552 16
FMC Corp. 1,114 53 Textron, Inc. 2,068 81
Freeport-McMoRan, Inc.(Æ) 6,395 83 TopBuild Corp.(Æ) 334 13
Huntsman Corp. 1,323 20 TransDigm Group, Inc.(Æ) 332 93
Ingevity Corp.(Æ) 251 10 Trimble Navigation, Ltd.(Æ) 1,732 46
International Flavors & Fragrances, Inc. 520 69 Triumph Group, Inc. 473 15
Masco Corp. 3,011 110 Union Pacific Corp.(ì) 6,272 584
Monsanto Co. 3,444 368 United Parcel Service, Inc. Class B 5,059 547
Newmont Mining Corp. 2,293 101 United Technologies Corp. 5,341 575
Owens-Illinois, Inc.(Æ) 1,379 26 Waters Corp.(Æ) 1,344 214
Packaging Corp. of America 995 74 WESCO International, Inc.(Æ) 875 49
Platform Specialty Products Corp.(Æ) 1,793 16 Xylem, Inc. 2,411 115
Praxair, Inc. 1,988 232       9,114
Reliance Steel & Aluminum Co. 589 46        
Sealed Air Corp. 2,145 101 Technology - 17.3%      
Steel Dynamics, Inc. 1,639 44 Akamai Technologies, Inc.(Æ) 1,200 61
Vulcan Materials Co. 817 101 Alphabet, Inc. Class C(Æ) 1,305 1,003
WestRock Co. 1,507 65 Alphabet, Inc. Class A(Æ) 1,249 988
      2,575 Ansys, Inc.(Æ) 309 28
        Apple, Inc.(ì) 25,098 2,616
Producer Durables - 10.9%       Avnet, Inc. 1,478 61
3M Co.(ì) 4,400 785 Broadcom, Ltd. 1,576 255
Accenture PLC Class A 3,500 395 Cadence Design Systems, Inc.(Æ) 4,432 107
AECOM(Æ) 197 7 Cisco Systems, Inc.(ì) 26,614 813
AGCO Corp. 898 43 Commercehub, Inc.(Æ) 68 1
Allison Transmission Holdings, Inc. Class A 500 14 Computer Sciences Corp. 949 45
Ametek, Inc. 1,190 56 CSRA, Inc. 949 26
Avery Dennison Corp. 1,187 92 Electronic Arts, Inc.(Æ) 3,031 231
Boeing Co. (The) 4,507 602 Facebook, Inc. Class A(Æ) 9,756 1,209
Booz Allen Hamilton Holding Corp. Class A 1,211 37 Fortinet, Inc.(Æ) 757 26
Caterpillar, Inc. 4,132 342 Harris Corp. 882 76
Chicago Bridge & Iron Co. 461 16 Hewlett Packard Enterprise Co. 9,771 205
Cintas Corp. 713 76 HP, Inc. 9,771 137
Copa Holdings, SA Class A 503 34 IAC/InterActiveCorp(Æ) 410 24
Delta Air Lines, Inc. 3,588 139 Intel Corp.(ì) 20,083 700
Emerson Electric Co. 5,760 322 International Business Machines Corp.(ì) 3,758 604
Flir Systems, Inc. 1,971 64 Lam Research Corp. 1,621 146
Flowserve Corp. 2,221 106 Leidos Holdings, Inc. 900 45
GATX Corp. 511 23 Linear Technology Corp. 4,274 256
General Electric Co.(ì) 52,287 1,628 LinkedIn Corp. Class A(Æ) 183 35
Honeywell International, Inc. 5,132 597 Lumentum Holdings, Inc.(Æ) 793 24
IDEX Corp. 1,808 162 Marvell Technology Group, Ltd. 1,954 23
IHS Markit, Ltd.(Æ) 1,205 42 Maxim Integrated Products, Inc. 1,820 74
Jacobs Engineering Group, Inc.(Æ) 2,018 108 Microchip Technology, Inc. 2,564 143
JetBlue Airways Corp.(Æ) 786 14 Micron Technology, Inc.(Æ) 7,807 107
Joy Global, Inc. 2,203 61 Microsoft Corp.(ì) 37,691 2,136
Kennametal, Inc. 1,039 26 Oracle Corp.(ì) 20,062 823
L-3 Communications Holdings, Inc. Class 3 1,344 204 QUALCOMM, Inc.(ì) 9,016 564
Mettler-Toledo International, Inc.(Æ) 372 153 SBA Communications Corp. Class A(Æ) 1,097 126
Oshkosh Corp. 638 35 Skyworks Solutions, Inc. 909 60
Pitney Bowes, Inc. 2,023 39 Tableau Software, Inc. Class A(Æ) 330 19
Quanta Services, Inc.(Æ) 1,940 50 Teradyne, Inc. 2,531 50
Robert Half International, Inc. 1,651 60 Texas Instruments, Inc. 6,986 487
Rockwell Collins, Inc. 1,531 129 VeriSign, Inc.(Æ) 1,322 115
Ryder System, Inc. 494 33 VMware, Inc. Class A(Æ) 362 26

 

See accompanying notes which are an integral part of this quarterly report.

300 Russell Strategic Call Overwriting Fund

 

Russell Investment Company
Russell Strategic Call Overwriting Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)       Amounts in thousands (except share amounts)    
  Principal   Fair       Principal Fair  
  Amount ($) or   Value       Amount ($) or Value  
  Shares   $       Shares $  
Yelp, Inc. Class A(Æ)   592   19   (cost $898)     1,027  
Zynga, Inc. Class A(Æ)   1,760   5            
 
          14,499 Short -Term Investments - 4.0%        
              Russell U.S. Cash Management Fund   3,392,791(8) 3,393  
Utilities - 5.4%             Total Short-Term Investments        
Ameren Corp.   3,981   209   (cost $3,393)     3,393  
American Electric Power Co., Inc.   4,308   299            
 
AT&T, Inc.(ì)   26,151   1,132   Total Investments 101.0%        
Calpine Corp.(Æ)   2,233   31   (identified cost $57,138)     84,703  
CMS Energy Corp.   5,891   266            
Duke Energy Corp.   5,607   480   Other Assets and Liabilities, Net        
Exelon Corp.   6,807   254 - (1.0%)   (875 )
FirstEnergy Corp.   1,801   63   Net Assets - 100.0%     83,828  
Frontier Communications Corp.   7,878   41            
Hawaiian Electric Industries, Inc.   454   14            
MDU Resources Group, Inc.   734   18            
NiSource, Inc.   4,424   113            
NRG Energy, Inc.   5,010   69            
OGE Energy Corp.   508   16            
Pinnacle West Capital Corp.   2,359   186            
Questar Corp.   1,644   41            
SCANA Corp.   2,626   197            
Verizon Communications, Inc.(ì)   18,621   1,032            
Westar Energy, Inc. Class A   1,532   85            
          4,546            
 
Total Common Stocks                      
(cost $52,847)         80,283            
 
Options Purchased - 1.2%                      
(Number of Contracts)                      
SPX Volatility Index                      
Aug 2016 12.00 Put (375) USD 450 (ÿ) 6            
Aug 2016 12.00 Put (375) USD 450 (ÿ) 8            
Aug 2016 12.50 Put (750) USD 938 (ÿ) 21            
Aug 2016 12.50 Put (375) USD 469 (ÿ) 15            
Aug 2016 13.00 Put (375) USD 488 (ÿ) 21            
Aug 2016 13.00 Put (375) USD 488 (ÿ) 23            
Aug 2016 13.00 Put (375) USD 488 (ÿ) 15            
Aug 2016 13.00 Put (375) USD 488 (ÿ) 25            
Aug 2016 14.00 Put (375) USD 525 (ÿ) 31            
Aug 2016 20.00 Call (375) USD 560 (ÿ) 4            
Aug 2016 20.00 Call (385) USD 560 (ÿ) 9            
Aug 2016 20.00 Call (175) USD 350 (ÿ) 1            
Aug 2016 21.00 Call (200) USD 420 (ÿ) 1            
Aug 2016 23.00 Call (375) USD 863 (ÿ) 12            
Sep 2016 14.00 Put (1,125) USD 1,575 (ÿ) 84            
Sep 2016 23.00 Call (280) USD 644 (ÿ) 25            
Oct 2016 13.00 Put (375) USD 488 (ÿ) 10            
Oct 2016 19.00 Put (245) USD 466 (ÿ) 83            
Oct 2016 24.00 Put (210) USD 504 (ÿ) 156            
Oct 2016 35.00 Call (55) USD 193 (ÿ) 3            
Nov 2016 13.00 Put (375) USD 488 (ÿ) 13            
Nov 2016 19.00 Put (275) USD 523 (ÿ) 96            
Nov 2016 24.00 Put (210) USD 504 (ÿ) 156            
Nov 2016 25.00 Call (550) USD 438 (ÿ) 27            
Nov 2016 32.50 Call (225) USD 731 (ÿ) 18            
Dec 2016 13.00 Put (375) USD 488 (ÿ) 15            
Dec 2016 19.00 Put (145) USD 276 (ÿ) 51            
Dec 2016 25.00 Call (175) USD 438 (ÿ) 29            
Dec 2016 30.00 Call (225) USD 675 (ÿ) 24            
Jan 2017 13.00 Put (375) USD 488 (ÿ) 9            
Jan 2017 25.00 Call (70) USD 175 (ÿ) 14            
Jan 2017 30.00 Call (170) USD 510 (ÿ) 22            
Total Options Purchased                      

 

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Call Overwriting Fund 301

 

Russell Investment Company
Russell Strategic Call Overwriting Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                            
 
Amounts in thousands (except contract amounts)                          
                          Unrealized  
                          Appreciation  
        Number of         Notional   Expiration (Depreciation)  
        Contracts         Amount   Date $  
Long Positions                            
S&P 500 E-Mini Index Futures     32 USD 3,469 09/16 7  
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)                     7  
 
Options Written                            
Amounts in thousands (except contract amounts)                          
    Number of   Strike         Notional   Expiration Fair Value  
  Call/Put Contracts   Price         Amount   Date $  
S&P 500 Index Call 30   2,190.00     USD 6,570   08/05/16 (10 )
S&P 500 Index Call 105   2,200.00     USD 23,100   08/05/16 (16 )
S&P 500 Index Call 30   2,200.00     USD 6,600   08/12/16 (11 )
S&P 500 Index Call 40   2,210.00     USD 8,840   08/12/16 (8 )
S&P 500 Index Call 40   2,215.00     USD 8,860   08/12/16 (19 )
S&P 500 Index Call 120   2,210.00     USD 26,520   08/19/16 (43 )
SPX Volatility Index Call 280   15.00     USD 420   08/10/16 (12 )
SPX Volatility Index Call 280   15.00     USD 420   08/17/16 (22 )
SPX Volatility Index Call 280   15.00     USD 420   08/24/16 (38 )
SPX Volatility Index Call 280   15.00     USD 420   09/21/16 (74 )
SPX Volatility Index Call 400   40.00     USD 1,600   11/16/16 (19 )
SPX Volatility Index Call 400   40.00     USD 1,600   12/21/16 (19 )
SPX Volatility Index Call 240   40.00     USD 960   01/18/17 (14 )
Total Liability for Options Written (premiums received $359)                       (305 )
 
Transactions in options written contracts for the period ended July 31, 2016 were as follows:          
        Number of     Premiums        
        Contracts     Received        
Outstanding October 31, 2015           2,965   $ 1,561        
Opened       97,451   33,323        
Closed       (97,821 ) (34,513 )      
Expired           (70 ) (12 )      
Outstanding July 31, 2016           2,525   $ 359        

 

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
              Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                      
Consumer Discretionary $ 11,716 $ — $ — $ — $   11,716
Consumer Staples   7,181   —   2   —     7,183
Energy   5,279   —   —   —     5,279
Financial Services   14,360   —   —   —     14,360
Health Care   11,011   —   —   —     11,011
Materials and Processing   2,575   —   —   —     2,575
Producer Durables   9,114   —   —   —     9,114
Technology   14,499   —   —   —     14,499
Utilities   4,546   —   —   —     4,546
Options Purchased 1,027 — — —   1,027
Short-Term Investments — — — 3,393   3,393
Total Investments 81,308 — 2 3,393   84,703

 

See accompanying notes which are an integral part of this quarterly report.

302 Russell Strategic Call Overwriting Fund

 

Russell Investment Company
Russell Strategic Call Overwriting Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
 
Amounts in thousands                          
 
          Fair Value                
                Practical        
Portfolio Summary Level 1   Level 2 Level 3 Expedient (a)   Total  
 
 
Other Financial Instruments                          
Assets                          
Futures Contracts 7   — — —   7  
 
Liabilities                          
Options Written (305 ) — — —   (305 )
Total Other Financial Instruments* $ (298 ) $ — $ — $ — $   (298 )

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Russell Strategic Call Overwriting Fund 303

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Common Stocks - 97.1%       Finish Line, Inc. (The) Class A 682 15
Consumer Discretionary - 14.2%       Foot Locker, Inc. 7,600 453
Aaron's, Inc. Class A 3,391 81 Ford Motor Co. 196,273 2,485
Advance Auto Parts, Inc. 3,162 537 Fortune Brands Home & Security, Inc. 2,332 148
Amazon.com, Inc.(Æ) 7,383 5,602 Fossil Group, Inc.(Æ) 1,320 42
AMC Networks, Inc. Class A(Æ) 1,847 102 GameStop Corp. Class A 5,313 164
Amerco, Inc.(Æ) 810 320 Gannett Co., Inc. 5,905 75
American Eagle Outfitters, Inc. 2,033 36 Gap, Inc. (The) 3,221 83
Aramark 2,052 74 Garmin, Ltd. 9,803 533
AutoNation, Inc.(Æ) 2,837 151 General Motors Co. 80,242 2,531
AutoZone, Inc.(Æ) 1,606 1,307 Genesco, Inc.(Æ) 296 21
Avis Budget Group, Inc.(Æ) 1,244 46 Gentex Corp. 8,319 147
Avon Products, Inc.(Æ) 6,104 25 Genuine Parts Co. 7,922 810
Bed Bath & Beyond, Inc. 6,644 299 Goodyear Tire & Rubber Co. (The) 22,027 632
Belmond, Ltd. Class A(Æ) 1,328 15 GoPro, Inc. Class A(Æ) 2,226 28
Best Buy Co., Inc. 13,942 468 Graham Holdings Co. Class B 297 149
BJ's Restaurants, Inc.(Æ) 309 12 Group 1 Automotive, Inc. 261 16
Bob Evans Farms, Inc. 333 12 Guess?, Inc. 986 15
BorgWarner, Inc. 1,178 39 H&R Block, Inc. 1,859 44
Brinker International, Inc. 3,937 186 Hanesbrands, Inc. 10,694 285
Brunswick Corp. 461 23 Harley-Davidson, Inc. 4,133 219
Buffalo Wild Wings, Inc.(Æ) 84 14 Harman International Industries, Inc. 2,168 179
Cabela's, Inc.(Æ) 2,424 125 Hasbro, Inc. 2,985 242
Cable One, Inc. 439 230 Helen of Troy, Ltd.(Æ) 276 28
CalAtlantic Group, Inc. 865 31 Hilton Worldwide Holdings, Inc. 4,621 107
CarMax, Inc.(Æ) 4,329 252 Home Depot, Inc. (The) 43,659 6,035
Carnival Corp. 23,715 1,108 Houghton Mifflin Harcourt Co.(Æ) 1,108 19
Carter's, Inc. 1,660 168 Hyatt Hotels Corp. Class A(Æ) 2,172 110
Cato Corp. (The) Class A 396 14 International Game Technology PLC 631 13
CBS Corp. Class B 7,581 396 International Speedway Corp. Class A 540 18
Charter Communications, Inc. Class A(Æ) 4,687 1,101 Interpublic Group of Cos., Inc. (The) 2,064 48
Children's Place, Inc. (The) 331 28 Interval Leisure Group, Inc. 353 6
Chipotle Mexican Grill, Inc. Class A(Æ) 279 118 Jack in the Box, Inc. 171 15
Choice Hotels International, Inc. 1,766 85 JC Penney Co., Inc.(Æ) 13,152 127
Cinemark Holdings, Inc. 3,591 135 John Wiley & Sons, Inc. Class A 3,769 217
Coach, Inc. 6,749 291 Johnson Controls, Inc. 32,708 1,502
Comcast Corp. Class A 76,264 5,129 KAR Auction Services, Inc. 5,384 230
Cooper Tire & Rubber Co. 548 18 Kate Spade & Co.(Æ) 1,777 39
Costco Wholesale Corp. 15,931 2,664 Kohl's Corp. 13,050 543
Coty, Inc. Class A 3,112 84 L Brands, Inc. 3,866 286
Cracker Barrel Old Country Store, Inc. 112 18 Lamar Advertising Co. Class A(ö) 1,086 74
Dana Holding Corp. 917 13 Las Vegas Sands Corp. 4,719 239
Darden Restaurants, Inc. 5,408 333 Lear Corp. 5,573 632
Delphi Automotive PLC 5,231 355 Leggett & Platt, Inc. 10,984 577
Dick's Sporting Goods, Inc. 9,603 493 Lennar Corp. Class A 8,823 413
Dillard's, Inc. Class A 1,276 86 Liberty Braves Group Class A(Æ) 1,094 18
DineEquity, Inc. 149 12 Liberty Braves Group Class C(Æ) 491 8
Discovery Communications, Inc. Class A(Æ) 3,071 77 Liberty Broadband Corp. Class A(Æ) 197 12
Discovery Communications, Inc. Class C(Æ) 5,114 126 Liberty Broadband Corp. Class C(Æ) 3,824 242
DISH Network Corp. Class A(Æ) 5,674 303 Liberty Interactive Corp. Class A(Æ) 7,779 209
Dollar General Corp. 11,244 1,065 Liberty Media Group Class A(Æ) 2,735 62
Dollar Tree, Inc.(Æ) 12,871 1,239 Liberty Media Group Class C(Æ) 1,229 28
Domino's Pizza, Inc. 2,001 295 Liberty SiriusXM Group Class A(Æ) 10,943 391
DR Horton, Inc. 13,152 432 Liberty SiriusXM Group Class C(Æ) 4,917 173
DSW, Inc. Class A 3,658 89 Liberty TripAdvisor Holdings, Inc. Class      
Dunkin' Brands Group, Inc. 2,779 126 A(Æ) 1,036 25
eBay, Inc.(Æ) 44,430 1,384 Liberty Ventures Class A(Æ) 3,814 144
Estee Lauder Cos., Inc. (The) Class A 11,906 1,106 Lions Gate Entertainment Corp. 1,131 23
Expedia, Inc. 3,547 414 Live Nation Entertainment, Inc.(Æ) 4,942 136
Express, Inc.(Æ) 1,226 18 LKQ Corp.(Æ) 12,758 439

 

See accompanying notes which are an integral part of this quarterly report.

304 Select U.S. Equity Fund

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Lowe's Cos., Inc. 33,114 2,725 Tesla Motors, Inc.(Æ) 1,204 283
lululemon athletica, Inc.(Æ) 2,488 193 Thomson Reuters Corp. 15,879 669
Macy's, Inc. 3,809 136 Thor Industries, Inc. 3,307 253
Madison Square Garden Co. (The) Class A(Æ) 1,453 266 Tiffany & Co. 1,892 122
Marriott International, Inc. Class A 2,923 210 Time Warner, Inc. 29,316 2,247
Marriott Vacations Worldwide Corp. 314 24 Time, Inc. 1,202 20
Mattel, Inc. 15,111 504 TJX Cos., Inc. 31,043 2,537
Matthews International Corp. Class A 415 25 Toll Brothers, Inc.(Æ) 7,709 216
McDonald's Corp. 28,816 3,390 Tractor Supply Co. 4,816 441
Media General, Inc.(Æ) 1,092 19 TRI Pointe Group, Inc.(Æ) 1,351 18
Meredith Corp. 445 24 Tribune Media Co. Class A 2,949 109
Meritage Homes Corp.(Æ) 448 16 TripAdvisor, Inc.(Æ) 1,688 118
MGM Resorts International(Æ) 16,560 397 Tupperware Brands Corp. 708 44
Michael Kors Holdings, Ltd.(Æ) 2,179 113 Twenty-First Century Fox, Inc. Class A 34,659 923
Michaels Cos., Inc. (The)(Æ) 2,792 74 Twenty-First Century Fox, Inc. Class B 10,149 274
Mohawk Industries, Inc.(Æ) 2,764 578 Ulta Salon Cosmetics & Fragrance, Inc.(Æ) 2,117 553
MSG Networks, Inc.(Æ) 4,360 70 Under Armour, Inc. Class A(Æ) 4,105 162
Murphy USA, Inc.(Æ) 2,220 170 Under Armour, Inc. Class C(Æ) 4,134 148
Netflix, Inc.(Æ) 10,805 986 Urban Outfitters, Inc.(Æ) 2,993 89
New York Times Co. (The) Class A 1,463 19 VF Corp. 15,880 991
Newell Brands, Inc. 16,129 846 Viacom, Inc. Class B 12,475 567
News Corp. Class A 24,001 311 Vista Outdoor, Inc.(Æ) 1,515 76
Nielsen Holdings PLC 3,956 213 WABCO Holdings, Inc.(Æ) 1,600 160
Nike, Inc. Class B 50,990 2,830 Wal-Mart Stores, Inc. 75,485 5,508
Nordstrom, Inc. 5,642 250 Walt Disney Co. (The) 49,061 4,707
Norwegian Cruise Line Holdings, Ltd.(Æ) 3,091 132 Wendy's Co. (The) 5,007 48
NVR, Inc.(Æ) 375 639 Whirlpool Corp. 4,216 811
Office Depot, Inc. 19,687 68 Williams-Sonoma, Inc. 674 36
Omnicom Group, Inc. 10,446 860 Wyndham Worldwide Corp. 713 51
O'Reilly Automotive, Inc.(Æ) 5,934 1,725 Wynn Resorts, Ltd. 1,138 111
Outfront Media, Inc.(ö) 1,765 41 Yum! Brands, Inc. 17,818 1,593
Pandora Media, Inc.(Æ) 2,887 39 Zillow Group, Inc.(Æ) 992 39
Panera Bread Co. Class A(Æ) 2,224 488 Zillow Group, Inc. Class A(Æ) 496 20
Penn National Gaming, Inc.(Æ) 1,031 15       106,658
Penske Automotive Group, Inc. 1,399 55        
Polaris Industries, Inc. 2,371 234 Consumer Staples - 6.9%      
Priceline Group, Inc. (The)(Æ) 1,117 1,509 Altria Group, Inc. 50,895 3,446
PulteGroup, Inc. 17,020 360 Archer-Daniels-Midland Co. 26,723 1,205
PVH Corp. 3,332 337 Brown-Forman Corp. Class B - ADR 6,949 682
Ralph Lauren Corp. Class A 4,130 405 Bunge, Ltd. 6,111 402
Regal Entertainment Group Class A 3,078 72 Campbell Soup Co. 9,056 564
Rent-A-Center, Inc. Class A 738 8 Church & Dwight Co., Inc. 6,616 650
Ross Stores, Inc. 22,997 1,422 Clorox Co. (The) 6,943 910
Royal Caribbean Cruises, Ltd. 9,317 675 Coca-Cola Co. (The) 77,783 3,394
Sally Beauty Holdings, Inc.(Æ) 9,521 279 Coca-Cola European Partners PLC 10,377 387
Scholastic Corp. 450 19 Colgate-Palmolive Co. 23,392 1,741
Scripps Networks Interactive, Inc. Class A 5,293 350 ConAgra Foods, Inc. 4,033 189
Service Corp. International 3,933 109 Constellation Brands, Inc. Class A 3,407 561
ServiceMaster Global Holdings, Inc.(Æ) 2,525 96 Core-Mark Holding Co., Inc. 586 29
Signet Jewelers, Ltd. 1,068 94 CVS Health Corp. 40,989 3,801
Sirius XM Holdings, Inc.(Æ) 38,242 168 Dean Foods Co. 1,121 21
Six Flags Entertainment Corp. 1,024 58 Dr Pepper Snapple Group, Inc. 9,094 896
Skechers U.S.A., Inc. Class A(Æ) 3,372 81 Energizer Holdings, Inc.(Æ) 378 32
Staples, Inc. 40,234 374 Flowers Foods, Inc. 7,852 144
Star Buffet, Inc. Class A(Æ) 1,315 40 Fresh Del Monte Produce, Inc. 540 31
Starbucks Corp. 52,578 3,052 General Mills, Inc. 20,227 1,454
Starwood Hotels & Resorts Worldwide, Inc. 821 64 Hain Celestial Group, Inc. (The)(Æ) 2,299 121
Target Corp. 29,932 2,255 Herbalife, Ltd.(Æ) 827 56
TEGNA, Inc. 17,310 379 Hershey Co. (The) 7,349 814
Tempur Sealy International, Inc.(Æ) 114 9 Hormel Foods Corp. 15,673 585

 

See accompanying notes which are an integral part of this quarterly report.

Select U.S. Equity Fund 305

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Ingredion, Inc. 4,259 567 Kinder Morgan, Inc. 73,923 1,503
JM Smucker Co. (The) 5,697 878 Marathon Oil Corp. 15,815 216
Kellogg Co. 1,869 155 Marathon Petroleum Corp. 31,704 1,249
Kimberly-Clark Corp. 10,064 1,304 Murphy Oil Corp. 4,444 122
Kraft Heinz Co. (The) 7,999 691 National Oilwell Varco, Inc. 8,745 283
Kroger Co. (The) 38,397 1,313 Newfield Exploration Co.(Æ) 4,602 199
Lancaster Colony Corp. 177 23 Noble Energy, Inc. 10,040 359
McCormick & Co., Inc. 6,639 679 NOW, Inc.(Æ) 4,899 90
Mead Johnson Nutrition Co. Class A 3,098 276 Occidental Petroleum Corp. 25,832 1,930
Molson Coors Brewing Co. Class B 2,203 225 Oceaneering International, Inc. 4,009 112
Mondelez International, Inc. Class A 62,435 2,746 ONEOK, Inc. 1,140 51
Monster Beverage Corp.(Æ) 603 97 PBF Energy, Inc. Class A 3,046 68
Nu Skin Enterprises, Inc. Class A 504 27 Phillips 66 24,561 1,868
PepsiCo, Inc. 33,983 3,701 Pioneer Natural Resources Co. 746 121
Philip Morris International, Inc. 43,414 4,353 Range Resources Corp. 2,341 94
Pinnacle Foods, Inc. 6,289 316 RPC, Inc.(Æ) 5,838 85
Post Holdings, Inc.(Æ) 440 38 Schlumberger, Ltd. 44,824 3,609
Procter & Gamble Co. (The) 79,585 6,812 SolarCity Corp.(Æ) 795 21
Reynolds American, Inc. 35,947 1,800 Spectra Energy Corp. 18,992 683
Rite Aid Corp.(Æ) 19,919 139 SunPower Corp. Class A(Æ) 316 5
Safeway, Inc. 4,520 2 Targa Resources Corp. 749 28
Seaboard Corp.(Æ) 4 12 Tesoro Corp. 7,267 553
Snyders-Lance, Inc. 664 23 Valero Energy Corp. 27,350 1,430
SpartanNash Co. 641 20 Weatherford International PLC(Æ) 16,505 94
SUPERVALU, Inc.(Æ) 2,110 10 Williams Cos., Inc. (The) 8,902 213
Sysco Corp. 16,668 863 World Fuel Services Corp. 3,557 169
TreeHouse Foods, Inc.(Æ) 303 31       49,241
Tyson Foods, Inc. Class A 4,737 349        
United Natural Foods, Inc.(Æ) 205 10 Financial Services - 19.9%      
Universal Corp. 372 22 Acadia Realty Trust(ö) 782 29
Vector Group, Ltd. 745 16 Affiliated Managers Group, Inc.(Æ) 1,692 248
Walgreens Boots Alliance, Inc. 30,930 2,451 Aflac, Inc. 23,418 1,693
WhiteWave Foods Co. (The) Class A(Æ) 321 18 Alexander & Baldwin, Inc. 509 20
      52,082 Alexandria Real Estate Equities, Inc.(ö) 901 101
        Alleghany Corp.(Æ) 508 276
Energy - 6.5%       Alliance Data Systems Corp.(Æ) 210 49
Anadarko Petroleum Corp. 14,936 814 Allied World Assurance Co. Holdings AG 16,360 671
Antero Resources Corp.(Æ) 3,139 82 Allstate Corp. (The) 20,900 1,428
Apache Corp. 16,873 886 Ally Financial, Inc. 10,011 181
Baker Hughes, Inc. 19,912 952 American Campus Communities, Inc.(ö) 3,907 211
Cabot Oil & Gas Corp. 1,302 32 American Capital Agency Corp.(ö) 11,201 219
Cheniere Energy, Inc.(Æ) 1,100 46 American Equity Investment Life Holding      
Chevron Corp. 89,271 9,149 Co. 862 14
Cimarex Energy Co. 356 43 American Express Co. 30,138 1,943
Concho Resources, Inc.(Æ) 509 63 American Financial Group, Inc. 7,914 579
ConocoPhillips 42,382 1,730 American Homes 4 Rent Class A(ö) 7,802 169
Continental Resources, Inc.(Æ) 1,290 57 American International Group, Inc. 46,432 2,528
Devon Energy Corp. 19,055 729 American National Insurance Co. 2,014 230
Diamond Offshore Drilling, Inc.(Æ) 2,936 67 American Tower Corp.(ö) 10,108 1,170
Energen Corp.(Æ) 2,834 134 Ameriprise Financial, Inc. 2,766 265
EOG Resources, Inc. 16,735 1,367 AmTrust Financial Services, Inc. 3,104 74
EQT Corp. 823 60 Annaly Capital Management, Inc.(ö) 24,670 271
Exxon Mobil Corp. 171,522 15,257 Aon PLC 4,601 493
First Solar, Inc.(Æ) 2,169 101 Arch Capital Group, Ltd.(Æ) 10,672 775
FMC Technologies, Inc.(Æ) 3,372 86 Argo Group International Holdings, Ltd. 452 23
Gulfport Energy Corp.(Æ) 3,498 102 ARMOUR Residential REIT, Inc.(ö) 679 14
Halliburton Co. 35,738 1,560 Arthur J Gallagher & Co. 6,636 326
Helmerich & Payne, Inc. 3,950 245 Aspen Insurance Holdings, Ltd. 6,713 309
Hess Corp. 6,481 348 Associated Banc-Corp. 6,655 124
HollyFrontier Corp. 6,913 176 Assurant, Inc. 6,053 502

 

See accompanying notes which are an integral part of this quarterly report.

306 Select U.S. Equity Fund

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Assured Guaranty, Ltd. 6,662 178 Eaton Vance Corp. 1,852 70
Astoria Financial Corp. 1,367 20 Education Realty Trust, Inc.(ö) 597 29
AvalonBay Communities, Inc.(ö) 2,678 497 Endurance Specialty Holdings, Ltd. 5,587 378
Axis Capital Holdings, Ltd. 10,980 610 Enstar Group, Ltd.(Æ) 131 22
Banco Latinoamericano de Comercio Exterior       EPR Properties(ö) 579 49
SA Class E 555 15 Equifax, Inc. 8,015 1,062
BancorpSouth, Inc. 1,136 27 Equinix, Inc.(ö) 374 139
Bank of America Corp. 400,781 5,807 Equity LifeStyle Properties, Inc. Class A(ö) 3,608 297
Bank of Hawaii Corp. 1,565 108 Equity One, Inc.(ö) 804 27
Bank of New York Mellon Corp. (The) 49,948 1,968 Equity Residential(ö) 11,335 771
BankUnited, Inc. 3,131 94 Erie Indemnity Co. Class A 2,560 250
BB&T Corp. 47,479 1,751 Essex Property Trust, Inc.(ö) 1,053 246
Berkshire Hathaway, Inc. Class B(Æ) 81,780 11,798 EverBank Financial Corp. 1,053 19
BlackRock, Inc. Class A 4,939 1,809 Everest Re Group, Ltd. 4,022 760
BOK Financial Corp. 2,347 153 Extra Space Storage, Inc.(ö) 7,797 671
Broadridge Financial Solutions, Inc. 8,702 589 FactSet Research Systems, Inc. 2,835 488
Brown & Brown, Inc. 5,706 209 Federal Realty Investment Trust(ö) 2,282 387
Camden Property Trust(ö) 2,844 255 Federated Investors, Inc. Class B 5,832 184
Capital One Financial Corp. 29,239 1,961 FelCor Lodging Trust, Inc.(ö) 1,675 11
Capitol Federal Financial, Inc. 1,827 26 Fidelity National Information Services, Inc. 6,324 503
Capstead Mortgage Corp.(ö) 1,505 15 Fifth Third Bancorp 42,952 815
Care Capital Properties, Inc.(ö) 1,488 44 First American Financial Corp. 1,062 44
Cathay General Bancorp 936 28 First Citizens BancShares, Inc. Class A 109 28
CBOE Holdings, Inc. 3,550 244 First Financial Bankshares, Inc. 688 24
CBRE Group, Inc. Class A(Æ) 8,855 252 First Horizon National Corp. 7,257 106
Charles Schwab Corp. (The) 39,742 1,129 First Industrial Realty Trust, Inc.(ö) 1,066 31
Chemical Financial Corp. 595 25 First Midwest Bancorp, Inc. 1,101 21
Chesapeake Lodging Trust(ö) 620 16 First Niagara Financial Group, Inc. 11,415 116
Chimera Investment Corp.(ö) 2,908 49 First Republic Bank 10,156 728
Chubb, Ltd. 22,343 2,799 FirstMerit Corp. 1,748 37
Cincinnati Financial Corp. 10,682 798 Fiserv, Inc.(Æ) 8,523 941
CIT Group, Inc. 6,189 214 FleetCor Technologies, Inc.(Æ) 827 125
Citigroup, Inc. 114,846 5,031 FNB Corp. 2,028 24
Citizens Financial Group, Inc. 17,765 397 FNF Group 19,166 722
CME Group, Inc. Class A 13,832 1,414 Forest City Realty Trust, Inc. Class A(ö) 1,258 30
CNA Financial Corp. 1,478 47 Four Corners Property Trust, Inc.(ö) 2,462 53
CNO Financial Group, Inc. 1,856 32 Franklin Resources, Inc. 23,511 851
Colony Capital, Inc. Class A(ö) 1,156 21 Franklin Street Properties Corp.(ö) 1,420 18
Columbia Banking System, Inc. 762 23 General Growth Properties, Inc.(ö) 5,005 160
Comerica, Inc. 7,161 324 Genworth Financial, Inc. Class A(Æ) 15,346 44
Commerce Bancshares, Inc. 14,085 666 GEO Group, Inc. (The)(ö) 757 26
Communications Sales & Leasing, Inc.(ö) 5,405 168 Glacier Bancorp, Inc. 943 26
Community Bank System, Inc. 569 25 Global Payments, Inc. 7,216 539
CoreLogic, Inc.(Æ) 2,865 115 Goldman Sachs Group, Inc. (The) 17,290 2,746
Corrections Corp. of America(ö) 5,990 192 Government Properties Income Trust(ö) 905 22
Cousins Properties, Inc.(ö) 2,516 27 Gramercy Property Trust(ö) 4,473 45
Credit Acceptance Corp.(Æ) 361 65 Hancock Holding Co. 934 27
Crown Castle International Corp.(ö) 844 82 Hanover Insurance Group, Inc. (The) 4,735 390
CubeSmart(ö) 1,335 40 Hartford Financial Services Group, Inc. 8,131 324
Cullen/Frost Bankers, Inc. 4,929 335 HCP, Inc.(ö) 10,636 417
CVB Financial Corp. 1,392 23 Healthcare Realty Trust, Inc.(ö) 1,014 37
CYS Investments, Inc.(ö) 2,020 18 Hersha Hospitality Trust Class A(ö) 682 13
DCT Industrial Trust, Inc.(ö) 840 42 Highwoods Properties, Inc.(ö) 867 48
DiamondRock Hospitality Co.(ö) 2,041 20 Hilltop Holdings, Inc.(Æ) 990 22
Digital Realty Trust, Inc.(ö) 1,626 170 Horace Mann Educators Corp. 597 20
Discover Financial Services 22,348 1,270 Hudson Pacific Properties, Inc.(ö) 674 23
Dun & Bradstreet Corp. (The) 2,778 359 Huntington Bancshares, Inc. 81,199 771
DuPont Fabros Technology, Inc.(ö) 622 30 Iberiabank Corp. 383 24
E*Trade Financial Corp.(Æ) 8,634 217 Independent Bank Corp. 450 23
East West Bancorp, Inc. 7,798 267 Interactive Brokers Group, Inc. Class A 2,147 75

 

See accompanying notes which are an integral part of this quarterly report.

Select U.S. Equity Fund 307

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Intercontinental Exchange, Inc. 2,954 780 Pinnacle Financial Partners, Inc. 468 25
International Bancshares Corp. 728 20 PNC Financial Services Group, Inc. (The) 28,342 2,342
Invesco Mortgage Capital, Inc.(ö) 1,371 20 Popular, Inc. 1,240 42
Invesco, Ltd. 2,885 84 Post Properties, Inc.(ö) 2,886 184
Investors Bancorp, Inc. 3,202 36 Primerica, Inc. 565 29
Jack Henry & Associates, Inc. 4,848 433 Principal Financial Group, Inc. 11,970 558
Janus Capital Group, Inc. 1,662 25 PrivateBancorp, Inc. Class A 676 30
Jones Lang LaSalle, Inc. 1,652 181 ProAssurance Corp. 6,187 320
JPMorgan Chase & Co. 154,482 9,882 Progressive Corp. (The) 34,771 1,130
Kemper Corp. 603 21 Prosperity Bancshares, Inc. 699 36
Kennedy-Wilson Holdings, Inc. 829 17 Provident Financial Services, Inc. 1,032 21
KeyCorp 36,099 422 Prudential Financial, Inc. 18,517 1,394
LaSalle Hotel Properties(ö) 1,054 29 PS Business Parks, Inc.(ö) 215 24
Lazard, Ltd. Class A 3,221 115 Public Storage(ö) 4,338 1,036
Legg Mason, Inc. 5,408 185 Radian Group, Inc. 1,459 19
Leucadia National Corp. 6,331 116 Ramco-Gershenson Properties Trust(ö) 1,033 20
Lexington Realty Trust(ö) 2,197 24 Raymond James Financial, Inc. 7,736 425
Liberty Property Trust(ö) 2,597 107 Rayonier, Inc.(ö) 3,305 90
Lincoln National Corp. 8,677 379 Realogy Holdings Corp. 4,007 124
Loews Corp. 10,662 441 Realty Income Corp.(ö) 9,816 702
LPL Financial Holdings, Inc. 286 8 Redwood Trust, Inc.(ö) 1,057 15
LTC Properties, Inc.(ö) 471 25 Regions Financial Corp. 58,429 536
M&T Bank Corp. 10,336 1,184 Reinsurance Group of America, Inc. Class A 3,717 369
Macerich Co. (The)(ö) 1,826 163 RenaissanceRe Holdings, Ltd. 5,090 598
Mack-Cali Realty Corp.(ö) 1,143 32 Retail Opportunity Investments Corp.(ö) 1,225 28
Markel Corp.(Æ) 761 722 RLI Corp. 515 35
Marsh & McLennan Cos., Inc. 17,672 1,162 RLJ Lodging Trust(ö) 1,123 27
MasterCard, Inc. Class A 30,840 2,937 Ryman Hospitality Properties, Inc.(ö) 287 16
MB Financial, Inc. 776 30 Santander Consumer USA Holdings, Inc.(Æ) 3,537 39
Medical Properties Trust, Inc.(ö) 2,166 34 SEI Investments Co. 10,870 489
Mercury General Corp. 3,725 206 Selective Insurance Group, Inc. 765 30
MetLife, Inc. 36,167 1,546 Senior Housing Properties Trust(ö) 7,976 177
MFA Financial, Inc.(ö) 27,903 210 Signature Bank(Æ) 2,635 317
MGIC Investment Corp.(Æ) 2,152 15 Simon Property Group, Inc.(ö) 5,642 1,281
Moody's Corp. 8,126 861 SLM Corp.(Æ) 28,279 203
Morgan Stanley 58,339 1,676 South State Corp. 319 23
Morningstar, Inc. 1,951 165 Sovran Self Storage, Inc.(Æ)(ö) 196 20
MSCI, Inc. Class A 10,061 866 STAG Industrial, Inc.(ö) 756 19
Nasdaq, Inc. 13,154 931 Starwood Property Trust, Inc.(ö) 15,474 337
National Retail Properties, Inc.(ö) 7,069 376 State Street Corp. 17,678 1,163
Nationstar Mortgage Holdings, Inc.(Æ) 2,378 30 Sterling Bancorp 1,313 22
Navient Corp. 12,390 176 Stifel Financial Corp.(Æ) 658 23
NBT Bancorp, Inc. 773 23 Sunstone Hotel Investors, Inc.(ö) 1,916 25
New Residential Investment Corp.(ö) 1,493 20 SunTrust Banks, Inc. 28,800 1,218
New York Community Bancorp, Inc. 41,407 598 SVB Financial Group(Æ) 1,630 164
New York REIT, Inc.(ö) 1,827 17 Synchrony Financial 7,466 208
Northern Trust Corp. 8,006 541 Synovus Financial Corp. 10,505 320
NorthStar Asset Management Group, Inc. 10,983 130 T Rowe Price Group, Inc. 7,185 508
Northwest Bancshares, Inc. 1,613 24 Taubman Centers, Inc.(ö) 1,323 107
Old National Bancorp 1,548 20 TCF Financial Corp. 5,745 78
Old Republic International Corp. 5,837 113 TD Ameritrade Holding Corp. 2,146 65
OneMain Holdings, Inc.(Æ) 1,626 47 Texas Capital Bancshares, Inc.(Æ) 453 22
PacWest Bancorp 4,606 190 Torchmark Corp. 9,063 561
Park National Corp. 220 20 Total System Services, Inc. 9,115 464
Parkway Properties, Inc.(ö) 1,052 18 Travelers Cos., Inc. (The) 23,305 2,709
PayPal Holdings, Inc.(Æ) 35,385 1,318 Trustmark Corp. 912 24
Pebblebrook Hotel Trust(ö) 692 21 Two Harbors Investment Corp.(ö) 5,058 44
Pennsylvania Real Estate Investment Trust(ö) 803 20 UDR, Inc.(ö) 3,169 118
PennyMac Mortgage Investment Trust(ö) 903 15 UMB Financial Corp. 464 26
People's United Financial, Inc. 34,797 528 Umpqua Holdings Corp. 1,787 27

 

See accompanying notes which are an integral part of this quarterly report.

308 Select U.S. Equity Fund

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Union Bankshares Corp. 835 22 Celgene Corp.(Æ) 15,682 1,759
United Bankshares, Inc. 765 29 Centene Corp.(Æ) 5,314 375
Unum Group 3,799 127 Cerner Corp.(Æ) 12,687 792
US Bancorp 77,523 3,269 Charles River Laboratories International,      
Validus Holdings, Ltd. 5,754 284 Inc.(Æ) 1,349 119
Valley National Bancorp 2,670 24 Cigna Corp. 12,039 1,553
Vantiv, Inc. Class A(Æ) 2,821 155 Community Health Systems, Inc.(Æ) 4,191 53
Ventas, Inc.(ö) 4,389 334 CONMED Corp. 388 16
Visa, Inc. Class A 62,247 4,858 Cooper Cos., Inc. (The) 2,645 483
Voya Financial, Inc. 11,000 282 CR Bard, Inc. 4,167 932
Waddell & Reed Financial, Inc. Class A 1,325 24 DaVita HealthCare Partners, Inc.(Æ) 1,048 81
Washington Federal, Inc. 1,200 30 Dentsply Sirona, Inc. 15,459 990
Washington Real Estate Investment Trust(ö) 802 28 DexCom, Inc.(Æ) 2,246 207
Webster Financial Corp. 908 33 Edwards Lifesciences Corp.(Æ) 5,516 632
Weingarten Realty Investors(ö) 4,799 207 Eli Lilly & Co. 30,303 2,512
Wells Fargo & Co. 204,728 9,821 Endo International PLC(Æ) 4,204 73
Welltower, Inc.(ö) 2,571 204 Envision Healthcare Holdings, Inc.(Æ) 1,438 35
WesBanco, Inc. 570 18 Express Scripts Holding Co.(Æ) 23,180 1,763
Westamerica Bancorporation 444 21 Gilead Sciences, Inc. 36,060 2,866
Western Union Co. (The) 15,063 301 Haemonetics Corp.(Æ) 576 17
WEX, Inc.(Æ) 159 15 HCA Holdings, Inc.(Æ) 17,316 1,336
Weyerhaeuser Co.(ö) 8,768 287 HealthSouth Corp. 482 21
White Mountains Insurance Group, Ltd. 483 397 Henry Schein, Inc.(Æ) 6,277 1,136
Wintrust Financial Corp. 546 29 Hill-Rom Holdings, Inc. 2,022 108
WR Berkley Corp. 6,936 404 Hologic, Inc.(Æ) 6,607 254
XL Group, Ltd. 17,232 596 Humana, Inc. 5,628 971
Zions Bancorporation 4,014 112 ICU Medical, Inc.(Æ) 207 24
      149,994 IDEXX Laboratories, Inc.(Æ) 770 72
        Illumina, Inc.(Æ) 4,327 720
Health Care - 13.7%       Incyte Corp.(Æ) 4,786 432
Abbott Laboratories 60,178 2,693 Integer Holdings Corp.(Æ) 364 8
AbbVie, Inc. 31,554 2,090 Integra LifeSciences Holdings Corp.(Æ) 287 24
Acadia Healthcare Co., Inc.(Æ) 652 37 Intercept Pharmaceuticals, Inc.(Æ) 146 25
Aetna, Inc. 19,761 2,277 Intrexon Corp.(Æ) 1,625 41
Agilent Technologies, Inc. 6,561 316 Intuitive Surgical, Inc.(Æ) 678 472
Agios Pharmaceuticals, Inc.(Æ) 810 37 Ionis Pharmaceuticals, Inc.(Æ) 5,272 154
Akorn, Inc.(Æ) 1,963 67 Jazz Pharmaceuticals PLC(Æ) 1,461 221
Alere, Inc.(Æ) 2,355 88 Johnson & Johnson 101,595 12,723
Alexion Pharmaceuticals, Inc.(Æ) 4,040 520 Juno Therapeutics, Inc.(Æ) 1,815 56
Align Technology, Inc.(Æ) 1,450 129 Kindred Healthcare, Inc. 845 10
Alkermes PLC(Æ) 4,069 203 Laboratory Corp. of America Holdings(Æ) 7,972 1,113
Allergan PLC(Æ) 10,887 2,754 LifePoint Health, Inc.(Æ) 3,362 199
Allscripts Healthcare Solutions, Inc.(Æ) 7,622 108 Magellan Health, Inc.(Æ) 353 24
Alnylam Pharmaceuticals, Inc.(Æ) 2,423 165 Mallinckrodt PLC(Æ) 2,586 174
AmerisourceBergen Corp. Class A 3,657 312 McKesson Corp. 7,412 1,442
Amgen, Inc. 24,464 4,209 Medivation, Inc.(Æ) 7,649 489
Amsurg Corp. Class A(Æ) 422 32 MEDNAX, Inc.(Æ) 7,853 541
Analogic Corp. 203 17 Medtronic PLC 52,995 4,644
Anthem, Inc. 15,160 1,991 Merck & Co., Inc. 101,364 5,946
Baxter International, Inc. 23,187 1,113 Mylan NV(Æ) 13,779 645
Becton Dickinson and Co. 9,287 1,634 Myriad Genetics, Inc.(Æ) 321 10
Biogen, Inc.(Æ) 5,331 1,546 Nuvectra Corp.(Æ) 121 1
BioMarin Pharmaceutical, Inc.(Æ) 4,138 411 OPKO Health, Inc.(Æ) 7,233 72
Bio-Rad Laboratories, Inc. Class A(Æ) 2,084 302 Owens & Minor, Inc. 736 26
Bluebird Bio, Inc.(Æ) 838 48 PAREXEL International Corp.(Æ) 261 17
Boston Scientific Corp.(Æ) 23,519 571 Patterson Cos., Inc. 792 39
Bristol-Myers Squibb Co. 46,828 3,503 PerkinElmer, Inc. 2,634 150
Brookdale Senior Living, Inc. Class A(Æ) 1,153 21 Perrigo Co. PLC 2,357 215
Bruker Corp. 1,963 49 Pfizer, Inc. 234,578 8,654
Cardinal Health, Inc. 13,266 1,109 Premier, Inc. Class A(Æ) 2,013 66

 

See accompanying notes which are an integral part of this quarterly report.

Select U.S. Equity Fund 309

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Puma Biotechnology, Inc.(Æ) 732 37 Ingevity Corp.(Æ) 1,015 39
Qiagen NV(Æ) 9,335 250 International Flavors & Fragrances, Inc. 2,269 302
Quest Diagnostics, Inc. 10,533 910 International Paper Co. 2,993 137
Quintiles Transnational Holdings, Inc.(Æ) 2,262 176 ITT, Inc. 3,653 116
Quorum Health Corp.(Æ) 1,047 11 Kaiser Aluminum Corp. 260 22
Regeneron Pharmaceuticals, Inc.(Æ) 2,310 982 Lennox International, Inc. 1,125 176
ResMed, Inc. 7,778 536 Louisiana-Pacific Corp.(Æ) 1,363 28
Seattle Genetics, Inc.(Æ) 549 26 LyondellBasell Industries Class A 11,536 868
Shire PLC - ADR 2,546 494 Martin Marietta Materials, Inc. 1,827 370
St. Jude Medical, Inc. 6,944 577 Masco Corp. 8,737 319
Steris PLC 254 18 Masonite International Corp.(Æ) 308 22
Stryker Corp. 14,357 1,669 Minerals Technologies, Inc. 332 22
Teleflex, Inc. 2,302 415 Monsanto Co. 8,057 860
Tenet Healthcare Corp.(Æ) 527 16 Mosaic Co. (The) 8,368 226
Thermo Fisher Scientific, Inc. 15,926 2,530 Mueller Industries, Inc. 488 17
United Therapeutics Corp.(Æ) 2,260 273 NewMarket Corp. 661 283
UnitedHealth Group, Inc. 32,405 4,640 Newmont Mining Corp. 9,212 405
Universal Health Services, Inc. Class B 2,739 355 Nucor Corp. 5,958 320
Varian Medical Systems, Inc.(Æ) 5,253 498 Olin Corp. 927 19
VCA, Inc.(Æ) 2,084 149 Owens Corning 4,065 215
Veeva Systems, Inc. Class A(Æ) 1,263 48 Owens-Illinois, Inc.(Æ) 2,544 48
Vertex Pharmaceuticals, Inc.(Æ) 6,398 621 Packaging Corp. of America 1,845 138
VWR Corp.(Æ) 2,823 88 Platform Specialty Products Corp.(Æ) 509 5
West Pharmaceutical Services, Inc. 302 24 PPG Industries, Inc. 7,282 762
Zimmer Biomet Holdings, Inc. 4,875 639 Praxair, Inc. 11,002 1,282
Zoetis, Inc. Class A 7,034 355 Reliance Steel & Aluminum Co. 3,079 242
      103,222 Royal Gold, Inc. 319 27
        RPM International, Inc. 3,950 214
Materials and Processing - 2.9%       Schweitzer-Mauduit International, Inc. 396 15
Acuity Brands, Inc. 1,302 342 Sealed Air Corp. 4,577 216
Air Products & Chemicals, Inc. 8,119 1,213 Sensient Technologies Corp. 501 37
Albemarle Corp. 3,187 268 Sherwin-Williams Co. (The) 4,068 1,219
Alcoa, Inc. 22,948 244 Silgan Holdings, Inc. 3,232 160
Allegheny Technologies, Inc. 4,212 75 Simpson Manufacturing Co., Inc. 556 23
AptarGroup, Inc. 2,086 163 Sonoco Products Co. 5,364 273
Ashland, Inc. 2,354 267 Southern Copper Corp. 1,704 44
Axalta Coating Systems, Ltd.(Æ) 2,668 76 Steel Dynamics, Inc. 10,928 293
Ball Corp. 3,539 250 Tahoe Resources, Inc. 4,879 76
Beacon Roofing Supply, Inc.(Æ) 625 29 Timken Co. (The) 3,435 115
Bemis Co., Inc. 4,776 244 United States Steel Corp. 4,864 134
Berry Plastics Group, Inc.(Æ) 499 20 Universal Forest Products, Inc. 310 34
Cabot Corp. 1,250 61 USG Corp.(Æ) 1,600 45
Celanese Corp. Class A 56 4 Valmont Industries, Inc. 1,665 218
CF Industries Holdings, Inc. 5,795 143 Valspar Corp. 2,236 238
Commercial Metals Co. 1,400 23 Vulcan Materials Co. 2,629 326
Compass Minerals International, Inc. 1,934 135 Watsco, Inc. 2,102 303
Crown Holdings, Inc.(Æ) 518 27 Westlake Chemical Corp. 739 34
Domtar Corp. 3,581 141 WestRock Co. 6,094 261
Dow Chemical Co. (The) 38,038 2,041 WR Grace & Co. 518 39
Eagle Materials, Inc. 816 68       21,650
Eastman Chemical Co. 2,204 144        
Ecolab, Inc. 10,473 1,240 Producer Durables - 10.9%      
EI du Pont de Nemours & Co. 19,492 1,348 3M Co. 18,332 3,270
Fastenal Co. 11,658 498 AAR Corp. 570 14
FMC Corp. 1,069 51 ABM Industries, Inc. 722 27
Freeport-McMoRan, Inc.(Æ) 29,049 376 Accenture PLC Class A 22,298 2,515
Graphic Packaging Holding Co. 8,087 110 Actuant Corp. Class A 834 20
Hecla Mining Co. 4,958 32 AECOM(Æ) 3,042 108
Hexcel Corp. 8,716 376 AGCO Corp. 1,114 54
Huntsman Corp. 3,469 54 Air Lease Corp. Class A 3,433 99

 

See accompanying notes which are an integral part of this quarterly report.

310 Select U.S. Equity Fund

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Aircastle, Ltd. 708 16 General Electric Co. 276,185 8,600
Alaska Air Group, Inc. 7,948 534 Genesee & Wyoming, Inc. Class A(Æ) 799 52
Albany International Corp. Class A 427 18 Genpact, Ltd.(Æ) 11,557 309
Allegion PLC 1,017 74 Graco, Inc. 3,536 262
Allison Transmission Holdings, Inc. Class A 1,526 44 Granite Construction, Inc. 562 28
American Airlines Group, Inc. 11,965 425 HD Supply Holdings, Inc.(Æ) 7,172 260
Ametek, Inc. 10,901 513 HEICO Corp. 281 20
AO Smith Corp. 5,808 540 Herc Holdings, Inc.(Æ) 1,479 52
Applied Industrial Technologies, Inc. 443 21 Hertz Global Holdings, Inc.(Æ) 4,438 216
Atlas Air Worldwide Holdings, Inc.(Æ) 353 15 Honeywell International, Inc. 24,906 2,897
Automatic Data Processing, Inc. 13,235 1,177 Hubbell, Inc. Class B 4,799 517
Avery Dennison Corp. 3,600 280 Huntington Ingalls Industries, Inc. 1,251 216
Babcock & Wilcox Co. (The) 3,631 134 Huron Consulting Group, Inc.(Æ) 301 18
Babcock & Wilcox Enterprises, Inc.(Æ) 4,164 64 IDEX Corp. 3,721 334
Barnes Group, Inc. 641 24 IHS Markit, Ltd.(Æ) 1,493 52
Boeing Co. (The) 19,244 2,572 Illinois Tool Works, Inc. 9,284 1,071
Brady Corp. Class A 703 23 Itron, Inc.(Æ) 500 21
Briggs & Stratton Corp. 795 18 Jacobs Engineering Group, Inc.(Æ) 3,491 187
Carlisle Cos., Inc. 3,407 352 JB Hunt Transport Services, Inc. 5,785 481
Caterpillar, Inc. 17,266 1,429 JetBlue Airways Corp.(Æ) 15,142 278
CH Robinson Worldwide, Inc. 4,891 341 Joy Global, Inc. 4,038 112
Chicago Bridge & Iron Co. 3,489 118 Kansas City Southern 4,088 393
Cintas Corp. 7,313 784 KBR, Inc. 6,008 84
Clarcor, Inc. 252 16 Kennametal, Inc. 3,055 76
Clean Harbors, Inc.(Æ) 844 43 Keysight Technologies, Inc.(Æ) 2,835 83
Colfax Corp.(Æ) 2,086 61 Kirby Corp.(Æ) 4,932 269
Convergys Corp. 1,180 31 Korn/Ferry International 541 12
Copa Holdings SA Class A 932 62 L-3 Communications Holdings, Inc. 5,141 780
Copart, Inc.(Æ) 6,454 326 Landstar System, Inc. 1,527 108
CoStar Group, Inc.(Æ) 964 200 Lexmark International, Inc. Class A 3,036 111
Covanta Holding Corp. 2,768 44 Lincoln Electric Holdings, Inc. 3,257 202
Crane Co. 1,929 120 Lockheed Martin Corp. 8,788 2,221
CSX Corp. 35,333 1,001 Macquarie Infrastructure Corp. 473 36
Cubic Corp. 329 13 Manitowoc Foodservice, Inc.(Æ) 2,169 40
Cummins, Inc. 7,782 955 ManpowerGroup, Inc. 1,867 130
Curtiss-Wright Corp. 418 37 Matson, Inc. 478 18
Danaher Corp. 24,224 1,973 MAXIMUS, Inc. 283 17
Darling Ingredients, Inc.(Æ) 1,555 25 Mettler-Toledo International, Inc.(Æ) 1,829 752
Deere & Co. 14,248 1,107 Middleby Corp.(Æ) 640 77
Delta Air Lines, Inc. 24,578 952 Mobile Mini, Inc. 493 16
Deluxe Corp. 370 25 Moog, Inc. Class A(Æ) 416 23
Donaldson Co., Inc. 7,890 285 MSC Industrial Direct Co., Inc. Class A 3,218 231
Dover Corp. 7,034 502 National Instruments Corp. 2,557 73
Eaton Corp. PLC 18,807 1,193 Navistar International Corp.(Æ) 123 2
EMCOR Group, Inc. 715 40 Nordson Corp. 3,989 352
Emerson Electric Co. 25,179 1,408 Norfolk Southern Corp. 12,944 1,162
EnerSys 431 27 Northrop Grumman Corp. 8,727 1,891
ESCO Technologies, Inc. 446 19 Old Dominion Freight Line, Inc.(Æ) 4,303 300
Essendant, Inc. 529 11 Orbital ATK, Inc. 3,504 305
Esterline Technologies Corp.(Æ) 316 19 Oshkosh Corp. 1,331 73
Expeditors International of Washington, Inc. 4,418 218 OSI Systems, Inc.(Æ) 251 15
Federal Signal Corp. 972 13 PACCAR, Inc. 5,465 322
FedEx Corp. 6,884 1,115 Parker-Hannifin Corp. 3,426 391
Flir Systems, Inc. 9,726 317 Paychex, Inc. 9,557 567
Fluor Corp. 2,433 130 Pentair PLC 2,300 147
Fortive Corp. 12,112 584 Pitney Bowes, Inc. 1,481 29
FTI Consulting, Inc.(Æ) 490 21 Quanta Services, Inc.(Æ) 10,511 269
G&K Services, Inc. Class A 280 22 Raytheon Co. 14,376 2,006
GATX Corp. 521 23 Regal Beloit Corp. 1,589 97
General Dynamics Corp. 12,402 1,822 Republic Services, Inc. Class A 15,628 801

 

See accompanying notes which are an integral part of this quarterly report.

Select U.S. Equity Fund 311

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
Robert Half International, Inc. 6,798 248 Ansys, Inc.(Æ) 5,654 505
Rockwell Automation, Inc. 2,433 278 Apple, Inc. 189,417 19,739
Rockwell Collins, Inc. 8,352 707 Applied Materials, Inc. 12,071 317
Rollins, Inc. 7,762 219 ARRIS International PLC(Æ) 2,868 78
Roper Technologies, Inc. 5,333 909 Arrow Electronics, Inc.(Æ) 3,992 265
RR Donnelley & Sons Co. 6,184 111 Aspen Technology, Inc.(Æ) 446 19
Ryder System, Inc. 2,331 154 Autodesk, Inc.(Æ) 1,942 115
S&P Global, Inc. 3,757 459 Avnet, Inc. 6,255 257
Snap-on, Inc. 3,154 496 Benchmark Electronics, Inc.(Æ) 808 19
Southwest Airlines Co. 12,882 477 Bio Techne Corp. 2,205 248
Spirit AeroSystems Holdings, Inc. Class A(Æ) 2,897 126 Black Knight Financial Services, Inc. Class      
Spirit Airlines, Inc.(Æ) 784 34 A(Æ) 2,131 83
SPX FLOW, Inc.(Æ) 1,999 55 Broadcom, Ltd. 6,360 1,030
Stanley Black & Decker, Inc. 4,346 529 Brocade Communications Systems, Inc. 18,014 168
Stericycle, Inc.(Æ) 4,496 406 CA, Inc. 19,388 672
Sykes Enterprises, Inc.(Æ) 720 22 CACI International, Inc. Class A(Æ) 283 27
Teledyne Technologies, Inc.(Æ) 324 34 Cadence Design Systems, Inc.(Æ) 3,992 96
Terex Corp. 941 23 CDK Global Inc. 3,523 204
Tetra Tech, Inc. 835 27 CDW Corp. 2,657 114
Textron, Inc. 9,801 382 Cirrus Logic, Inc.(Æ) 595 29
TopBuild Corp.(Æ) 270 10 Cisco Systems, Inc. 249,789 7,626
Toro Co. (The) 4,129 380 Citrix Systems, Inc.(Æ) 2,620 234
TransDigm Group, Inc.(Æ) 2,319 648 Cognex Corp. 2,796 126
Trinity Industries, Inc. 5,316 123 Cognizant Technology Solutions Corp. Class      
Triumph Group, Inc. 1,988 61 A(Æ) 15,119 869
Tyco International PLC 12,201 556 Coherent, Inc.(Æ) 323 34
UniFirst Corp. 190 22 Commercehub, Inc.(Æ) 1,144 16
Union Pacific Corp. 25,456 2,369 CommScope Holding Co., Inc.(Æ) 1,833 55
United Continental Holdings, Inc.(Æ) 9,270 435 Computer Sciences Corp. 6,402 306
United Parcel Service, Inc. Class B 16,489 1,782 Corning, Inc. 67,034 1,490
United Rentals, Inc.(Æ) 781 62 Cree, Inc.(Æ) 4,666 133
United Technologies Corp. 34,234 3,685 CSRA, Inc. 6,402 172
Verisk Analytics, Inc. Class A(Æ) 9,639 822 Cypress Semiconductor Corp. 8,377 98
Wabtec Corp. 6,251 428 Diebold, Inc. 1,123 32
Waste Connections, Inc. 7,549 562 DigitalGlobe, Inc.(Æ) 712 19
Waste Management, Inc. 16,763 1,108 Dolby Laboratories, Inc. Class A 5,101 257
Waters Corp.(Æ) 4,241 674 DST Systems, Inc. 3,002 370
Watts Water Technologies, Inc. Class A 375 23 EchoStar Corp. Class A(Æ) 1,406 55
Werner Enterprises, Inc. 578 15 Electronic Arts, Inc.(Æ) 7,925 605
WESCO International, Inc.(Æ) 797 44 EMC Corp. 103,419 2,925
Woodward, Inc. 440 26 Entegris, Inc.(Æ) 1,315 22
WW Grainger, Inc. 2,710 593 F5 Networks, Inc.(Æ) 1,078 133
Xerox Corp. 32,459 334 Facebook, Inc. Class A(Æ) 59,247 7,343
XPO Logistics, Inc.(Æ) 454 13 Fairchild Semiconductor International, Inc.      
Xylem, Inc. 10,566 505 Class A(Æ) 1,322 26
Zebra Technologies Corp. Class A(Æ) 981 52 FireEye, Inc.(Æ) 3,231 56
      81,875 Fortinet, Inc.(Æ) 3,096 107
        Gartner, Inc.(Æ) 6,804 682
Technology - 16.7%       Groupon, Inc. Class A(Æ) 10,977 53
3D Systems Corp.(Æ) 1,150 15 Harris Corp. 2,083 180
Activision Blizzard, Inc. 19,891 799 Hewlett Packard Enterprise Co. 80,200 1,686
Acxiom Corp.(Æ) 923 21 HP, Inc. 109,349 1,532
Adobe Systems, Inc.(Æ) 11,414 1,117 II-VI, Inc.(Æ) 939 19
Akamai Technologies, Inc.(Æ) 5,018 254 IMS Health Holdings, Inc.(Æ) 2,542 76
Alphabet, Inc. Class A(Æ) 10,038 7,943 Ingram Micro, Inc. Class A(Æ) 3,265 112
Alphabet, Inc. Class C(Æ) 7,398 5,688 Insight Enterprises, Inc.(Æ) 663 18
Amdocs, Ltd. 8,311 485 Intel Corp. 232,009 8,088
Amphenol Corp. Class A 16,228 966 International Business Machines Corp. 28,239 4,536
Analog Devices, Inc. 12,618 805 Intersil Corp. Class A 1,410 22
Anixter International, Inc.(Æ) 254 16 Intuit, Inc. 10,550 1,171

 

See accompanying notes which are an integral part of this quarterly report.

312 Select U.S. Equity Fund

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)   Amounts in thousands (except share amounts)  
    Principal Fair     Principal Fair
  Amount ($) or Value   Amount ($) or Value
    Shares $     Shares $
IPG Photonics Corp.(Æ) 834 70 Tyler Technologies, Inc.(Æ) 140 23
Jabil Circuit, Inc. 10,228 208 Ultimate Software Group, Inc.(Æ) 742 155
JDS Uniphase Corp.(Æ) 5,623 40 Veeco Instruments, Inc.(Æ) 540 9
Juniper Networks, Inc. 14,089 320 Verint Systems, Inc.(Æ) 273 10
KLA-Tencor Corp. 2,940 223 VeriSign, Inc.(Æ) 1,938 168
Lam Research Corp. 5,374 482 VMware, Inc. Class A(Æ) 1,228 90
Leidos Holdings, Inc. 3,283 164 Western Digital Corp. 16,408 780
Linear Technology Corp. 8,886 533 Workday, Inc. Class A(Æ) 979 82
LinkedIn Corp. Class A(Æ) 906 175 Xilinx, Inc. 6,603 337
Lumentum Holdings, Inc.(Æ) 1,124 34 Yahoo!, Inc.(Æ) 26,699 1,020
Manhattan Associates, Inc.(Æ) 328 19 Yelp, Inc. Class A(Æ) 1,086 35
Marvell Technology Group, Ltd. 21,033 247 Zynga, Inc. Class A(Æ) 21,456 62
Maxim Integrated Products, Inc. 4,110 168       126,201
Mentor Graphics Corp. 1,127 24        
Microchip Technology, Inc. 4,246 236 Utilities - 5.4%      
Micron Technology, Inc.(Æ) 58,018 797 AES Corp. 678 8
Microsemi Corp.(Æ) 761 30 ALLETE, Inc. 504 32
Microsoft Corp. 310,830 17,619 Alliant Energy Corp. 6,968 280
MKS Instruments, Inc. 668 31 Ameren Corp. 6,135 322
Motorola Solutions, Inc. 2,873 199 American Electric Power Co., Inc. 20,942 1,451
NCR Corp.(Æ) 7,718 254 American States Water Co. 511 22
NetApp, Inc. 21,944 578 American Water Works Co., Inc. 9,195 759
NETGEAR, Inc.(Æ) 554 28 Aqua America, Inc. 8,922 309
NetSuite, Inc.(Æ) 813 89 AT&T, Inc. 229,655 9,942
Nuance Communications, Inc.(Æ) 1,517 24 Atmos Energy Corp. 7,011 559
NVIDIA Corp. 18,934 1,081 Avangrid, Inc. 608 27
ON Semiconductor Corp.(Æ) 14,903 149 Avista Corp. 726 32
Oracle Corp. 107,647 4,418 Black Hills Corp. 519 33
Palo Alto Networks, Inc.(Æ) 1,538 201 California Water Service Group 731 25
Plexus Corp.(Æ) 424 19 Calpine Corp.(Æ) 789 11
Polycom, Inc.(Æ) 1,165 14 CenterPoint Energy, Inc. 2,689 64
Progress Software Corp.(Æ) 731 21 CenturyLink, Inc. 14,808 466
PTC, Inc.(Æ) 1,378 55 CMS Energy Corp. 3,313 150
QLogic Corp.(Æ) 1,286 20 Consolidated Edison, Inc. 11,832 947
Qorvo, Inc.(Æ) 1,416 90 Dominion Resources, Inc. 7,870 614
QUALCOMM, Inc. 64,815 4,056 DTE Energy Co. 6,786 662
Rackspace Hosting, Inc.(Æ) 1,988 47 Duke Energy Corp. 16,964 1,452
Red Hat, Inc.(Æ) 4,653 350 Dynegy, Inc. Class A(Æ) 1,034 16
Rogers Corp.(Æ) 228 16 Edison International 4,400 340
Rovi Corp.(Æ) 2,303 43 El Paso Electric Co. 552 26
Sabre Corp. 1,873 55 Empire District Electric Co. (The) 698 24
Salesforce.com, Inc.(Æ) 12,980 1,062 Entergy Corp. 1,606 131
Sanmina Corp.(Æ) 885 22 Eversource Energy 9,612 562
SBA Communications Corp. Class A(Æ) 1,522 175 Exelon Corp. 35,789 1,334
ScanSource, Inc.(Æ) 475 19 FirstEnergy Corp. 3,880 135
ServiceNow, Inc.(Æ) 4,463 334 Frontier Communications Corp. 35,220 183
Silicon Laboratories, Inc.(Æ) 343 18 Hawaiian Electric Industries, Inc. 8,535 265
Skyworks Solutions, Inc. 5,728 378 Idacorp, Inc. 525 42
Splunk, Inc.(Æ) 2,667 167 ITC Holdings Corp. 2,649 123
SS&C Technologies Holdings, Inc. 5,198 167 Level 3 Communications, Inc.(Æ) 5,861 297
Stratasys, Ltd.(Æ) 1,069 22 MDU Resources Group, Inc. 1,352 33
Symantec Corp. 30,668 627 MGE Energy, Inc. 479 27
SYNNEX Corp. 314 32 National Fuel Gas Co. 2,487 141
Synopsys, Inc.(Æ) 14,020 759 New Jersey Resources Corp. 930 35
Tableau Software, Inc. Class A(Æ) 658 37 NextEra Energy, Inc. 12,121 1,555
Take-Two Interactive Software, Inc.(Æ) 844 34 NiSource, Inc. 3,769 97
Teradata Corp.(Æ) 4,895 139 Northwest Natural Gas Co. 404 26
Teradyne, Inc. 5,489 108 NorthWestern Corp. 524 32
Texas Instruments, Inc. 38,538 2,688 NRG Energy, Inc. 3,145 44
Twitter, Inc.(Æ) 2,198 37 NRG Yield, Inc. Class C 320 6

 

See accompanying notes which are an integral part of this quarterly report.

Select U.S. Equity Fund 313

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)    
    Principal   Fair
  Amount ($) or   Value
    Shares   $
OGE Energy Corp. 3,684   119
ONE Gas, Inc. 522   34
Otter Tail Corp. 564   20
PG&E Corp. 17,939   1,147
Piedmont Natural Gas Co., Inc. 834   50
Pinnacle West Capital Corp. 2,104   166
PNM Resources, Inc. 918   32
Portland General Electric Co. 836   36
PPL Corp. 14,918   563
Public Service Enterprise Group, Inc. 14,304   658
Questar Corp. 5,280   133
SCANA Corp. 8,462   634
Sempra Energy 8,101   906
South Jersey Industries, Inc. 826   26
Southern Co. (The) 27,907   1,493
Southwest Gas Corp. 512   40
Spire, Inc. 505   35
Sprint Corp.(Æ) 24,933   153
Talen Energy Corp.(Æ) 1,767   24
Telephone & Data Systems, Inc. 5,211   164
T-Mobile US, Inc.(Æ) 16,022   742
UGI Corp. 3,197   145
US Cellular Corp.(Æ) 2,005   81
Vectren Corp. 6,543   338
Verizon Communications, Inc. 128,397   7,114
WEC Energy Group, Inc. 11,209   728
Westar Energy, Inc. Class A 5,852   325
WGL Holdings, Inc. 557   39
Windstream Holdings, Inc. 3,466   32
Xcel Energy, Inc. 21,309   937
        40,555
 
Total Common Stocks        
(cost $705,673)       731,478
 
Short-Term Investments - 2.7%        
Russell U.S. Cash Management Fund 19,990,432 (8) 19,990
Total Short-Term Investments        
(cost $19,990)       19,990
 
Total Investments 99.8%        
(identified cost $725,663)       751,468
 
Other Assets and Liabilities, Net        
- 0.2%       1,552
Net Assets - 100.0%       753,020

 

See accompanying notes which are an integral part of this quarterly report.

314 Select U.S. Equity Fund

 

Russell Investment Company
Select U.S. Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                        
Amounts in thousands (except contract amounts)                    
                        Unrealized
                      Appreciation
          Number of   Notional   Expiration (Depreciation)
          Contracts   Amount   Date   $
Long Positions                        
Russell 1000 Mini Index Futures       89 USD 10,692 09/16   404
S&P 500 E-Mini Index Futures       98 USD 10,624 09/16   447
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)                   851
 
Presentation of Portfolio Holdings                      
 
Amounts in thousands                        
 
        Fair Value              
                Practical    
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Common Stocks                        
Consumer Discretionary $ 106,658 $ — $   — $   — $ 106,658
Consumer Staples   52,080   —     2     —   52,082
Energy   49,241   —     —     —   49,241
Financial Services   149,994   —     —     —   149,994
Health Care   103,222   —     —     —   103,222
Materials and Processing   21,650   —     —     —   21,650
Producer Durables   81,875   —     —     —   81,875
Technology   126,201   —     —     —   126,201
Utilities   40,555   —     —     —   40,555
Short-Term Investments — —   —   19,990 19,990
Total Investments 731,476 —   2   19,990 751,468
 
 
Other Financial Instruments                        
Assets                        
Futures Contracts 851 —   —   — 851
 
Total Other Financial Instruments* $ 851 $ — $   — $   — $ 851

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

See accompanying notes which are an integral part of this quarterly report.

Select U.S. Equity Fund 315

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Common Stocks - 94.8%           Woolworths, Ltd. 15,724   280
Australia - 5.3%                   41,587
AGL Energy, Ltd. 59,011   921          
Amcor, Ltd. Class A 47,937   548 Austria - 0.5%        
AMP, Ltd. 46,853   207 Erste Group Bank AG(Æ) 39,318   1,039
APA Group 36,205   268 EVN AG 13,173   154
Aristocrat Leisure, Ltd. 47,861   581 Mayr Melnhof Karton AG 682   75
Asciano, Ltd. 101,364   705 OMV AG 35,083   931
ASX, Ltd. - ADR 14,625   551 Raiffeisen Bank International AG(Æ) 23,214   306
Aurizon Holdings, Ltd. 42,852   170 Strabag SE 21,737   680
AusNet Services 95,591   129 Telekom Austria AG - ADR(Æ) 26,681   157
Australia & New Zealand Banking           Verbund AG Class A 12,063   189
Group, Ltd. - ADR 124,980   2,444 Voestalpine AG 11,361   400
Bank of Queensland, Ltd. 38,655   310         3,931
Bendigo & Adelaide Bank, Ltd. 73,908   572          
BHP Billiton PLC 160,831   2,038 Belgium - 1.2%        
BHP Billiton, Ltd. - ADR 66,420   990 Ackermans & van Haaren NV 867   105
Brambles, Ltd. 71,911   736 Ageas 32,624   1,096
Challenger, Ltd. 26,093   188 Anheuser-Busch InBev SA 25,948   3,341
CIMIC Group, Ltd. 24,027   530 Cie d'Entreprises CFE 809   75
Coca-Cola Amatil, Ltd. 32,508   228 Colruyt SA 9,453   527
Cochlear, Ltd. 4,566   461 D'ieteren SA 4,604   202
Commonwealth Bank of Australia - ADR 61,592   3,609 Elia System Operator SA 6,590   351
CSL, Ltd. 20,416   1,834 Groupe Bruxelles Lambert SA 10,930   921
Dexus Property Group(ö) 64,066   476 KBC Group NV 13,286   690
Domino's Pizza Enterprises, Ltd. 3,610   207 Proximus 4,768   149
Fortescue Metals Group, Ltd. 338,830   1,146 Sofina SA 2,629   352
Goodman Group(ö) 68,750   395 Solvay SA 5,120   531
GPT Group (The)(ö) 75,931   324 UCB SA 10,572   826
Harvey Norman Holdings, Ltd. 71,745   264         9,166
Incitec Pivot, Ltd. 126,722   277          
LendLease Group 45,279   463 Bermuda - 0.1%        
Macquarie Group, Ltd. 13,717   778 Hiscox, Ltd. 62,352   874
Medibank Pvt, Ltd. 202,902   472          
National Australia Bank, Ltd. - ADR 81,496   1,649 Canada - 7.2%        
            Agnico Eagle Mines, Ltd. 5,904   344
Newcrest Mining, Ltd. 57,704   1,109 Agrium, Inc. 1,701   154
Origin Energy, Ltd. 65,270   274 Alimentation Couche-Tard, Inc. Class B 25,722   1,163
Qantas Airways, Ltd. 105,118   251 Atco, Ltd. Class I 2,347   88
QBE Insurance Group, Ltd. 74,146   620 Bank of Montreal 52,987   3,397
Ramsay Health Care, Ltd. 9,440   566 Bank of Nova Scotia (The) 61,266   3,112
REA Group, Ltd. 5,342   264 Barrick Gold Corp. 38,619   843
Santos, Ltd. 41,442   139 BCE, Inc. 19,233   921
Scentre Group(ö) 296,717   1,196 Brookfield Asset Management, Inc.        
Sonic Healthcare, Ltd. 24,784   434 Class A 44,410   1,534
South32, Ltd.(Æ) 563,465   790 CAE, Inc. 14,419   192
Star Entertainment Grp, Ltd. (The) 87,094   392 Canadian Imperial Bank of Commerce 26,339   2,001
Stockland(ö) 94,551   363 Canadian National Railway Co. 20,756   1,316
Suncorp Group, Ltd. 44,242   453 Canadian Natural Resources, Ltd. 60,245   1,824
Sydney Airport 101,655   585 Canadian Tire Corp., Ltd. Class A 7,919   832
Telstra Corp., Ltd. 194,967   856 CCL Industries, Inc. Class B 2,117   379
TPG Telecom, Ltd. 51,737   505 Cenovus Energy, Inc. 59,625   854
Transurban Group - ADR 119,434   1,141 CGI Group, Inc. Class A(Æ) 15,738   764
Treasury Wine Estates, Ltd. 136,050   1,000 Constellation Software, Inc. 344   140
Vicinity Centres(ö) 86,056   227 Dollarama, Inc. 7,725   571
Vocus Communications, Ltd. 63,589   432 Emera, Inc. 8,399   313
Washington H Soul Pattinson & Co., Ltd. 16,507   219 Empire Co., Ltd. Class A 14,481   231
Wesfarmers, Ltd. 24,642   806 Enbridge, Inc. 13,362   550
Westfield Corp.(ö) 105,914   861 Fairfax Financial Holdings, Ltd. 2,746   1,472
Westpac Banking Corp. 141,472   3,353 First Quantum Minerals, Ltd. 57,821   500
            Fortis, Inc. 31,517   1,044

 

See accompanying notes which are an integral part of this quarterly report.

316 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Genworth MI Canada, Inc. 8,548   228 TDC AS(Æ) 49,563   261
George Weston, Ltd. 4,065   361 Vestas Wind Systems A/S 12,261   856
Gildan Activewear, Inc. Class A 5,791   170         13,301
Goldcorp, Inc. 31,315   560          
Great-West Lifeco, Inc. 33,878   880 Finland - 1.2%        
Husky Energy, Inc.(Æ) 24,953   294 Amer Sports OYJ Class A 9,438   268
Imperial Oil, Ltd. 43,880   1,350 Elisa OYJ Class A 15,892   576
Industrial Alliance Insurance &           Fortum OYJ 57,217   950
Financial Services, Inc. 8,550   278 Huhtamaki OYJ 9,990   439
Kinross Gold Corp.(Æ) 185,261   958 Kesko OYJ Class B 8,718   388
Loblaw Cos., Ltd. 11,640   649 Kone OYJ Class B 16,353   828
Lundin Mining Corp.(Æ) 60,978   255 Neste OYJ 30,821   1,166
Magna International, Inc. Class A 38,602   1,487 Nokia OYJ 74,465   428
Manulife Financial Corp. 126,497   1,725 Nokian Renkaat OYJ 4,317   160
Metro, Inc. Class A 24,473   890 Orion OYJ Class B 5,362   220
National Bank of Canada 27,458   940 Orion OYJ Class A 4,659   189
Open Text Corp. 2,617   159 Sampo OYJ Class A 15,506   642
Pembina Pipeline Corp. 6,814   199 Stora Enso OYJ Class R 71,553   649
Peyto Exploration & Development Corp. 3,697   105 UPM-Kymmene OYJ 118,832   2,446
Potash Corp. of Saskatchewan, Inc. 20,254   316         9,349
Power Corp. of Canada 62,338   1,358          
Power Financial Corp. 38,847   898 France - 8.4%        
Restaurant Brands International, Inc. 8,888   398 Aeroports de Paris 1,179   125
Ritchie Bros Auctioneers, Inc. 2,334   77 Air Liquide SA Class A 7,849   837
Rogers Communications, Inc. Class B 18,843   832 Arkema SA 8,995   768
Royal Bank of Canada - GDR 65,628   4,001 Atos SE 5,434   532
Saputo, Inc. - ADR 21,173   636 AXA SA 164,948   3,355
Seven Generations Energy, Ltd. Class           BioMerieux 1,156   160
A(Æ) 18,641   391 BNP Paribas SA 76,802   3,800
Sun Life Financial, Inc. 47,453   1,564 Bollore SA 105,122   380
Suncor Energy, Inc. 80,216   2,159 Bouygues SA - ADR 33,100   978
Teck Resources, Ltd. Class B 64,541   1,029 Capgemini SA 6,184   593
TELUS Corp. 5,062   169 Carrefour SA 47,723   1,194
Toronto Dominion Bank 92,341   4,023 Casino Guichard Perrachon SA 4,145   224
TransCanada Corp. 17,327   803 Christian Dior SE 4,284   774
Waste Connections, Inc. 1,017   76 Cie de Saint-Gobain 47,895   2,029
WestJet Airlines, Ltd. 15,059   265 CNP Assurances 11,677   178
WSP Global, Inc. 12,751   382 Credit Agricole SA 144,823   1,282
Yamana Gold, Inc. 180,021   1,030 Danone SA 23,462   1,805
          56,434 Dassault Systemes SA 13,790   1,138
            Eiffage SA 13,737   1,056
Cayman Islands - 0.1%           Electricite de France SA 6,179   81
HK Electric Investments & HK Electric           Engie SA 125,388   2,061
Investments, Ltd.(Þ) 505,000   484 Essilor International SA 11,764   1,505
            Eurazeo SA 10,552   674
Curacao - 0.0%           Financiere de L'Odet 84   73
HAL Trust 787   157 Iliad SA 787   153
            Imerys SA 2,719   193
Denmark - 1.7%           Ingenico Group SA 3,030   332
AP Moeller - Maersk A/S Class B 626   850 Ipsen SA 3,088   201
Chr Hansen Holding A/S 7,684   483 Kering 1,216   231
Coloplast A/S Class B 2,454   192 Legrand SA - ADR 7,543   416
Danske Bank A/S 38,227   1,037 L'Oreal SA 8,757   1,665
DSV A/S 15,607   694 LVMH Moet Hennessy Louis Vuitton        
Genmab A/S(Æ) 6,259   1,131 SE - ADR 5,888   1,009
H Lundbeck A/S(Æ) 7,629   310 Natixis SA 31,035   128
ISS A/S 11,840   456 Orange SA - ADR 141,161   2,165
Jyske Bank A/S 11,174   464 Orpea 1,688   149
Novo Nordisk A/S Class B 93,178   5,317 Pernod Ricard SA 6,556   749
Novozymes A/S Class B 7,231   355 Peugeot SA(Æ) 27,032   407
Pandora A/S 6,890   895 Publicis Groupe SA - ADR 10,729   798

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 317

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Renault SA 34,855   3,043 OSRAM Licht AG 16,947   880
Sanofi - ADR 46,206   3,929 ProSiebenSat.1 Media SE 4,569   209
Sartorius Stedim Biotech 7,446   528 Rational AG 573   277
Schneider Electric SE 30,473   1,990 Rheinmetall AG 8,822   618
SCOR SE - ADR 30,594   893 Rhoen Klinikum AG 2,460   72
SEB SA 1,845   246 RWE AG(Æ) 31,673   562
Societe BIC SA 2,208   326 SAP SE - ADR 31,281   2,739
Societe Generale SA 83,183   2,836 Siemens AG 44,078   4,786
Sodexo SA 3,802   445 Suedzucker AG 24,191   605
Suez Environnement Co. 26,793   435 Symrise AG 11,023   776
Technip SA 17,038   950 Talanx AG 6,377   192
Teleperformance - GDR 5,467   508 United Internet AG 11,650   514
Thales SA 11,786   1,073 Vonovia SE 13,730   544
Total SA 155,665   7,483         59,966
Unibail-Rodamco SE(Æ)(ö) 2,733   752          
Valeo SA 9,990   512 Hong Kong - 3.2%        
Veolia Environnement SA 36,139   802 AIA Group, Ltd. 271,400   1,687
Vinci SA 35,449   2,688 Bank of East Asia, Ltd. (The) 148,600   616
Vivendi SA - ADR 68,857   1,352 BOC Hong Kong Holdings, Ltd. 283,500   933
Worldline SA(Æ)(Þ) 5,717   171 Cheung Kong Infrastructure Holdings,        
        65,160 Ltd. 63,000   558
          Cheung Kong Property Holdings, Ltd. 303,000   2,174
Germany - 7.7%         Chinese Estates Holdings, Ltd. 19,000   51
adidas AG 15,520   2,546 CK Hutchison Holdings, Ltd. 99,036   1,159
Allianz SE 35,589   5,098 CLP Holdings, Ltd. 35,500   370
BASF SE 41,572   3,266 Guoco Group, Ltd. 37,000   421
Bayer AG 30,585   3,291 Hang Lung Properties, Ltd. - ADR 95,000   206
Bayerische Motoren Werke AG 30,448   2,623 Hang Seng Bank, Ltd. 47,700   854
Beiersdorf AG 10,103   948 Henderson Land Development Co., Ltd. 180,070   1,069
Brenntag AG 3,005   149 Hongkong Land Holdings, Ltd. 99,400   639
Commerzbank AG 101,851   671 Hopewell Holdings, Ltd. 114,000   379
Continental AG 3,608   756 Jardine Matheson Holdings, Ltd. 34,800   2,064
Covestro AG(Þ) 3,911   183 Jardine Strategic Holdings, Ltd. 20,100   615
Daimler AG 65,418   4,442 Link REIT(ö) 259,500   1,937
Deutsche Bank AG(Æ) 75,422   1,012 Melco Crown Entertainment, Ltd.(Æ) 8,400   39
Deutsche Boerse AG 4,225   354 MTR Corp., Ltd. 132,000   748
Deutsche Lufthansa AG 82,549   981 New World Development Co., Ltd. 742,000   863
Deutsche Post AG 58,507   1,746 NWS Holdings, Ltd. 200,000   327
Deutsche Telekom AG 112,452   1,912 PCCW, Ltd. 335,000   244
Deutsche Wohnen AG 35,225   1,317 Power Assets Holdings, Ltd. 29,500   289
E.ON SE 65,874   706 Sino Land Co., Ltd. 480,000   859
Evonik Industries AG 9,626   300 Sun Hung Kai Properties, Ltd. 112,000   1,599
Freenet AG 8,999   251 Swire Pacific, Ltd. Class A 118,000   1,413
Fresenius Medical Care AG & Co. 9,096   831 Swire Properties, Ltd. 57,200   159
Fresenius SE & Co. KGaA 25,295   1,889 Techtronic Industries Co., Ltd. 47,000   199
Fuchs Petrolub AG 4,056   156 Wharf Holdings, Ltd. (The) 201,095   1,390
Hannover Rueck SE 8,457   864 Wheelock & Co., Ltd. 188,000   1,009
HeidelbergCement AG 26,120   2,212 Yue Yuen Industrial Holdings, Ltd. 54,500   221
Henkel AG & Co. KGaA 8,537   927         25,091
Hochtief AG 3,809   499          
Infineon Technologies AG - ADR 89,938   1,489 Ireland - 1.0%        
K&S AG 8,144   170 AerCap Holdings NV(Æ) 27,713   1,012
Krones AG 2,034   203 CRH PLC 54,510   1,672
LEG Immobilien AG 4,233   424 DCC PLC 6,814   608
Linde AG 2,416   348 Experian PLC 37,587   734
Merck KGaA 10,259   1,131 Glanbia PLC 21,203   408
Metro AG 2,315   74 Icon PLC(Æ) 4,432   344
MTU Aero Engines AG 3,723   380 James Hardie Industries PLC 13,561   225
Muenchener Rueckversicherungs-         Jazz Pharmaceuticals PLC(Æ) 519   78
Gesellschaft AG in Muenchen 18,254   3,043 Kerry Group PLC Class A 10,082   862
          Kingspan Group PLC 10,690   246

 

See accompanying notes which are an integral part of this quarterly report.

318 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair     Principal   Fair
      Amount ($)   Value     Amount ($)   Value
      or Shares   $     or Shares   $
Paddy Power Betfair PLC 5,128   602 Century Tokyo Leasing Corp. 10,500   363
Smurfit Kappa Group PLC 7,572   178 Chiba Bank, Ltd. (The) 76,000   364
Willis Towers Watson PLC 7,093   877 Chubu Electric Power Co., Inc. 68,300   998
          7,846 Chugai Pharmaceutical Co., Ltd. 22,000   823
            Chugoku Bank, Ltd. (The) 20,800   234
Israel - 0.5%           Chugoku Electric Power Co., Inc. (The)        
Bank Hapoalim BM 153,198   780 (Æ) 12,900   162
Bank Leumi Le-Israel BM(Æ) 194,304   699 Concordia Financial Group, Ltd. 122,000   532
Check Point Software Technologies, Ltd.         COSMOS Pharmaceutical Corp. 900   189
(Æ) 4,473   344 CYBERDYNE, Inc.(Æ) 14,100   272
Delek Energy Systems, Ltd.(Æ) 141   75 Dai Nippon Printing Co., Ltd. 65,000   725
Elbit Systems, Ltd. 1,765   178 Daicel Chemical Industries, Ltd. 18,400   205
Mizrahi Tefahot Bank, Ltd. 21,430   260 Daihatsu Motor Co., Ltd.(Æ) 29,600   445
Mobileye NV(Æ) 1,621   78 Dai-ichi Life Insurance Co., Ltd. (The) 24,400   317
Taro Pharmaceutical Industries, Ltd.(Æ) 1,243   174 Daiichi Sankyo Co., Ltd. 50,100   1,192
Teva Pharmaceutical Industries, Ltd. 30,585   1,653 Daikin Industries, Ltd. 9,900   860
          4,241 Daito Trust Construction Co., Ltd. 3,400   572
            Daiwa House Industry Co., Ltd. 32,300   906
Italy - 2.0%           Daiwa Securities Group, Inc.(Æ) 88,000   495
A2A SpA 54,670   77 Denso Corp. 28,200   1,096
Assicurazioni Generali SpA 100,483   1,321 Dentsu, Inc. 5,600   267
Atlantia SpA 38,742   968 East Japan Railway Co. 9,700   891
Banca Popolare di Milano Scarl 254,016   123 Eisai Co., Ltd. 7,900   462
Banco Popolare SC 40,625   114 Electric Power Development Co., Ltd. 22,100   505
Davide Campari-Milano SpA 27,326   282 Ezaki Glico Co., Ltd. 4,500   269
Enel SpA 635,060   2,923 FamilyMart Co., Ltd. 6,400   378
ENI SpA - ADR 137,190   2,096 FANUC Corp.(Æ) 1,000   167
Hera SpA 158,023   448 Fuji Electric Co., Ltd.(Æ) 23,000   101
Intesa Sanpaolo SpA 827,313   1,821 Fuji Heavy Industries, Ltd. 29,900   1,150
Leonardo-Finmeccanica SpA(Æ) 19,126   218 FUJIFILM Holdings Corp. 34,600   1,244
Luxottica Group SpA 5,489   266 Fujitsu, Ltd. 36,000   149
Mediobanca SpA 26,943   189 Fukuoka Financial Group, Inc. 102,000   388
Parmalat SpA 87,811   231 Gunma Bank, Ltd. (The) 26,000   104
Poste Italiane SpA(Þ) 28,309   197 Hachijuni Bank, Ltd. (The) 62,000   290
Prysmian SpA 6,954   163 Hankyu Hanshin Holdings, Inc. 19,600   727
Recordati SpA 15,766   511 Hikari Tsushin, Inc. 2,400   199
Snam Rete Gas SpA 157,159   909 Hiroshima Bank, Ltd. (The) 40,000   145
Telecom Italia SpA(Æ) 157,897   134 Hisamitsu Pharmaceutical Co., Inc. 9,400   537
Terna Rete Elettrica Nazionale SpA 130,299   709 Hitachi High-Technologies Corp. 5,500   187
UniCredit SpA 573,545   1,404 Hitachi Metals, Ltd. 13,100   146
Unione di Banche Italiane SpA 66,709   204 Hitachi, Ltd.(Æ) 237,000   1,083
          15,308 Hokuriku Electric Power Co.(Æ) 8,500   101
 
Japan - 20.6%           Honda Motor Co., Ltd. 90,200   2,464
Aeon Co., Ltd. 65,100   933 Hoshizaki Corp. 5,700   516
Aisin Seiki Co., Ltd. 23,600   1,077 Hoya Corp.(Æ) 21,000   745
Ajinomoto Co., Inc. 31,000   791 Idemitsu Kosan Co., Ltd. 29,500   574
Alfresa Holdings Corp. 24,600   538 Iida Group Holdings Co., Ltd. 16,000   318
ANA Holdings, Inc. 173,000   496 Inpex Corp. 61,900   485
Aozora Bank, Ltd. 95,000   348 Isuzu Motors, Ltd. 42,100   547
Asahi Glass Co., Ltd. 100,000   573 ITOCHU Corp. 164,700   1,862
Asahi Group Holdings, Ltd. 7,700   261 Iyo Bank, Ltd. (The) 16,900   109
Asahi Kasei Corp. 76,000   575 Japan Post Bank Co., Ltd. 70,100   856
Astellas Pharma, Inc. 62,400   1,040 Japan Post Holdings Co., Ltd. 63,500   836
Bandai Namco Holdings, Inc. 8,300   220 Japan Tobacco, Inc. 42,900   1,675
Bridgestone Corp. 40,200   1,395 JFE Holdings, Inc.(Æ) 30,900   402
Brother Industries, Ltd. 28,900   328 JGC Corp. 14,000   204
Calbee, Inc. 3,600   157 Joyo Bank, Ltd. (The) 52,000   203
Canon, Inc. 51,200   1,451 JSR Corp. 16,600   227
Casio Computer Co., Ltd. 8,400   120 JTEKT Corp. 6,500   91
Central Japan Railway Co. 7,700   1,432 JX Holdings, Inc. 302,600   1,137

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 319

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair       Principal   Fair
      Amount ($)   Value       Amount ($)   Value
      or Shares   $       or Shares   $
Kajima Corp. 133,000   983 Nintendo Co., Ltd.(Æ) 4,100   847
Kamigumi Co., Ltd. 40,000   360 Nippon Express Co., Ltd. 54,000   273
Kaneka Corp. 36,000   272 Nippon Steel & Sumitomo Metal Corp.          
Kansai Electric Power Co., Inc. (The)(Æ) 67,100   630 (Æ) 53,800   1,016
Kao Corp. 25,600   1,380 Nippon Telegraph & Telephone Corp. 74,200   3,548
KDDI Corp. 73,100   2,226 Nippon Yusen KK 206,000   364
Keihan Electric Railway Co., Ltd. 43,000   309 Nissan Chemical Industries, Ltd. 2,600   83
Keikyu Corp. 8,000   81 Nissan Motor Co., Ltd.(Æ) 276,700   2,694
Keio Corp. 15,000   139 Nisshin Seifun Group, Inc. 28,200   464
Keisei Electric Railway Co., Ltd. 11,000   144 Nissin Foods Holdings Co., Ltd. 5,600   318
Kewpie Corp. 3,100   95 Nitori Holdings Co., Ltd. 6,700   838
Keyence Corp. 1,900   1,341 Nomura Holdings, Inc.(Æ) 137,000   614
Kikkoman Corp. 13,000   466 Nomura Real Estate Holdings, Inc. 14,200   245
Kintetsu Group Holdings Co., Ltd. 134,000   579 Nomura Real Estate Master Fund, Inc.(ö) 45   74
Kirin Holdings Co., Ltd. 20,300   351 NSK, Ltd. 15,500   130
Kobayashi Pharmaceutical Co., Ltd. 5,800   275 NTT Data Corp. 14,000   691
Kobe Steel, Ltd.(Æ) 263,000   228 NTT DOCOMO, Inc. 80,400   2,182
Koito Manufacturing Co., Ltd.(Æ) 6,800   336 Obayashi Corp. 91,100   997
Komatsu, Ltd. 54,800   1,064 Obic Co., Ltd. 5,600   327
Konami Holdings Corp. 12,700   492 Odakyu Electric Railway Co., Ltd. 35,000   414
Konica Minolta, Inc. 66,400   533 Oji Holdings Corp. 173,000   719
Kose Corp. 2,700   249 Ono Pharmaceutical Co., Ltd. 28,800   1,033
Kubota Corp. 39,500   575 Oracle Corp. Japan(Æ) 4,100   249
Kuraray Co., Ltd. 39,400   497 Oriental Land Co., Ltd. 4,500   284
Kyocera Corp.(Æ) 10,300   484 ORIX Corp. 121,500   1,699
Kyowa Hakko Kirin Co., Ltd. 18,200   318 Osaka Gas Co., Ltd. 260,000   1,047
Lawson, Inc. 5,200   403 Otsuka Holdings Co., Ltd. 26,800   1,271
Lion Corp. 9,000   136 Panasonic Corp.(Æ) 97,900   950
LIXIL Group Corp. 5,900   110 Park24 Co., Ltd. 13,200   448
M3, Inc.(Æ) 13,000   417 Pola Orbis Holdings, Inc. 4,400   433
Makita Corp. 10,300   722 Recruit Holdings Co., Ltd. 12,700   484
Marubeni Corp. 213,600   993 Resona Holdings, Inc. 245,800   983
Marui Group Co., Ltd. 12,600   182 Ricoh Co., Ltd. 114,200   1,007
Mazda Motor Corp. 19,800   293 Rinnai Corp. 3,800   373
Medipal Holdings Corp. 33,100   541 Ryohin Keikaku Co., Ltd. 1,700   378
MEIJI Holdings Co., Ltd. 9,100   951 Santen Pharmaceutical Co., Ltd. 35,200   584
Mitsubishi Chemical Holdings Corp. 223,700   1,209 Sawai Pharmaceutical Co., Ltd. 2,300   183
Mitsubishi Corp. 111,700   1,914 SBI Holdings, Inc.(Æ) 6,500   71
Mitsubishi Electric Corp.(Æ) 84,000   984 Secom Co., Ltd. 7,200   541
Mitsubishi Gas Chemical Co., Inc. 90,000   512 Seiko Epson Corp. 39,700   700
Mitsubishi Heavy Industries, Ltd. 182,000   777 Sekisui Chemical Co., Ltd. 55,800   815
Mitsubishi Materials Corp. 138,000   362 Sekisui House, Ltd. 69,200   1,156
Mitsubishi Motors Corp. 77,900   364 Seven & i Holdings Co., Ltd. 28,500   1,185
Mitsubishi Tanabe Pharma Corp. 33,400   624 Shimadzu Corp. 9,000   131
Mitsubishi UFJ Financial Group, Inc. 660,900   3,361 Shimamura Co., Ltd. 2,600   380
Mitsubishi UFJ Lease & Finance Co.,           Shimano, Inc. 2,800   439
Ltd. 54,700   220 Shimizu Corp. 56,000   570
Mitsui & Co., Ltd. 155,000   1,809 Shin-Etsu Chemical Co., Ltd. 7,500   512
Mitsui Chemicals, Inc. 90,000   381 Shinsei Bank, Ltd. 243,000   367
Mitsui OSK Lines, Ltd. 187,000   398 Shionogi & Co., Ltd. 21,800   1,130
Mixi, Inc.(Æ) 3,700   134 Shiseido Co., Ltd. 19,200   539
Mizuho Financial Group, Inc. 1,566,500   2,518 Shizuoka Bank, Ltd. (The) 49,000   364
MS&AD Insurance Group Holdings, Inc. 42,200   1,217 SoftBank Group Corp. 23,200   1,281
Murata Manufacturing Co., Ltd. 7,000   857 Sohgo Security Services Co., Ltd. 8,200   406
Nagoya Railroad Co., Ltd. 29,000   163 Sojitz Corp. 359,200   865
Nankai Electric Railway Co., Ltd. 59,000   326 Sompo Japan Nipponkoa Holdings, Inc. 7,700   249
NEC Corp. 220,000   603 Sony Corp. 17,100   567
NHK Spring Co., Ltd. 21,000   184 Sosei Group Corp.(Æ) 1,100   173
Nidec Corp. 5,300   481 Sugi Holdings Co., Ltd. - GDR 5,900   295
Nikon Corp. 31,200   442 Sumitomo Chemical Co., Ltd. 166,000   733

 

See accompanying notes which are an integral part of this quarterly report.

320 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
Sumitomo Corp. 146,000   1,527 Jersey - 0.1%        
Sumitomo Dainippon Pharma Co., Ltd. 19,700   368 Randgold Resources, Ltd. 9,609   1,128
Sumitomo Electric Industries, Ltd. 73,800   1,017          
Sumitomo Heavy Industries, Ltd. 22,000   104 Luxembourg - 0.2%        
Sumitomo Metal Mining Co., Ltd. 52,000   622 ArcelorMittal(Æ) 77,288   497
Sumitomo Mitsui Financial Group, Inc. 85,100   2,714 Eurofins Scientific SE 419   157
Sumitomo Mitsui Trust Holdings, Inc. 312,000   1,040 Millicom International Cellular SA 3,580   191
Sumitomo Rubber Industries, Ltd. 27,100   382 Regus PLC 75,293   304
Sundrug Co., Ltd. 4,200   365 Tenaris SA 53,306   713
Suntory Beverage & Food, Ltd. 8,200   356         1,862
Suzuken Co., Ltd. 10,400   332          
Suzuki Motor Corp. 9,500   292 Netherlands - 3.4%        
Sysmex Corp. 8,300   575 Aalberts Industries NV 4,999   166
T&D Holdings, Inc. 7,900   81 ABN AMRO Group NV(Þ) 37,548   697
Taiheiyo Cement Corp. 143,000   409 Aegon NV 145,697   593
Taisei Corp. 59,000   529 Akzo Nobel NV 4,925   319
Taisho Pharmaceutical Holdings Co.,         ASM International NV 5,336   208
Ltd. 4,700   514 ASML Holding NV 12,749   1,410
Takashimaya Co., Ltd. 41,000   309 Boskalis Westminster 14,498   532
Takeda Pharmaceutical Co., Ltd. 19,500   868 Core Laboratories NV 1,868   218
TDK Corp. 3,500   215 GrandVision NV(Þ) 8,520   232
Teijin, Ltd. 79,000   297 Heineken Holding NV 13,116   1,098
Terumo Corp. 31,600   1,359 Heineken NV 17,118   1,616
Tobu Railway Co., Ltd. 26,000   140 ING Groep NV 266,263   2,970
Toho Co., Ltd. 8,400   244 Koninklijke Ahold Delhaize NV 90,625   2,164
Toho Gas Co., Ltd. 37,000   326 Koninklijke DSM NV 11,689   748
Tohoku Electric Power Co., Inc.(Æ) 49,800   638 Koninklijke Philips NV 37,778   1,007
Tokio Marine Holdings, Inc. 21,200   821 Koninklijke Vopak NV 2,273   117
Tokyo Broadcasting System Holdings,         NN Group NV 39,588   1,067
Inc. 16,800   238 NXP Semiconductors NV(Æ) 13,127   1,104
Tokyo Electric Power Co. Holdings, Inc.         Randstad Holding NV 2,690   116
(Æ) 343,300   1,344 Royal Dutch Shell PLC Class A 257,098   6,695
Tokyo Electron, Ltd. 3,600   313 Royal Dutch Shell PLC Class B 72,455   1,928
Tokyo Gas Co., Ltd. 126,000   534 SBM Offshore NV 27,035   363
Tokyu Corp. 86,000   706 Wolters Kluwer NV 20,948   881
TonenGeneral Sekiyu KK 26,000   234         26,249
 
Toppan Printing Co., Ltd. 100,000   883 New Zealand - 0.2%        
Toray Industries, Inc. 32,000   291 Auckland International Airport, Ltd. 85,847   457
Tosoh Corp. 75,000   381 Fisher & Paykel Healthcare Corp., Ltd. 28,945   220
TOTO, Ltd. 12,900   552 Meridian Energy, Ltd. 43,100   87
Toyo Seikan Group Holdings, Ltd. 26,200   510 Ryman Healthcare, Ltd. 15,216   105
Toyo Suisan Kaisha, Ltd. 5,000   222 Spark New Zealand, Ltd. 147,515   421
Toyoda Gosei Co., Ltd. 6,300   137         1,290
Toyota Industries Corp. 16,700   748          
Toyota Motor Corp.(Æ) 124,600   6,934 Norway - 0.7%        
Toyota Tsusho Corp. 21,900   482 DNB ASA 120,672   1,327
Tsuruha Holdings, Inc. 3,400   388 Marine Harvest ASA 24,533   417
Unicharm Corp. 5,600   115 Norsk Hydro ASA 58,483   249
Welcia Holdings Co., Ltd. 1,500   100 Orkla ASA 49,815   463
West Japan Railway Co. 8,300   514 Salmar ASA Class A 2,386   74
Yahoo! Japan Corp. 51,200   226 Statoil ASA Class N 108,985   1,732
Yamada Denki Co., Ltd. 145,600   766 Telenor ASA 37,860   632
Yamaguchi Financial Group, Inc. 25,000   247 Yara International ASA 24,082   785
Yamaha Corp. 18,800   518         5,679
Yamato Holdings Co., Ltd. 3,000   74          
Yamazaki Baking Co., Ltd. 4,000   110 Portugal - 0.4%        
Yokohama Rubber Co., Ltd. (The) 9,800   132 Banco BPI SA Class G(Æ) 228,875   285
        160,077 Banco Comercial Portugues SA Class        
          R(Æ) 13,098,744   296
          Banco Espirito Santo SA Class C(Æ) 22,842   3

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 321

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair       Principal   Fair
    Amount ($)   Value       Amount ($)   Value
    or Shares   $       or Shares   $
Energias de Portugal SA 355,145   1,217 Boliden AB 29,749   654
Galp Energia SGPS SA Class B 32,008   438 Castellum AB 7,161   108
Jeronimo Martins SGPS SA 19,354   324 Electrolux AB 3,590   97
Portucel SA - ADR 45,893   145 Fastighets AB Balder Class B(Æ) 24,470   669
        2,708 Fingerprint Cards AB Class B(Æ) 22,255   259
          Getinge AB Class B 6,223   126
Singapore - 1.0%         Hennes & Mauritz AB Class B 24,906   752
CapitaLand, Ltd. 134,200   319 Hexagon AB Class B 21,047   830
DBS Group Holdings, Ltd. 103,800   1,199 Holmen AB Class B 3,835   130
Jardine Cycle & Carriage, Ltd. 3,200   95 Hufvudstaden AB Class A 20,104   336
Keppel Corp., Ltd. - ADR 116,100   460 ICA Gruppen AB 8,459   283
Neptune Orient Lines, Ltd.(Æ) 292,700   284 Investment AB Latour Class B 4,009   156
Oversea-Chinese Banking Corp., Ltd. 248,838   1,606 L E Lundbergforetagen AB Class B 7,188   432
Singapore Airlines, Ltd. 88,300   725 Melker Schorling AB 5,005   318
Singapore Telecommunications, Ltd. 278,900   865 NCC AB Class B 5,367   129
United Overseas Bank, Ltd. 84,800   1,159 NIBE Industrier AB B Shares 23,928   205
Wilmar International, Ltd. 352,100   815 Nordea Bank AB 187,652   1,672
        7,527 Securitas AB Class B 35,908   591
          Skandinaviska Enskilda Banken AB          
South Africa - 0.1%         Class A 125,765   1,102
Investec PLC 40,680   242 Skanska AB Class B 18,971   403
Mondi PLC 28,426   575 SSAB AB Class A(Æ) 53,193   167
        817 Svenska Cellulosa AB SCA Class A 15,926   472
 
Spain - 2.9%         Svenska Cellulosa AB SCA Class B 39,161   1,164
Abertis Infraestructuras SA 15,186   239 Svenska Handelsbanken AB Class A 66,075   795
Acciona SA 2,040   151 Svenska Handelsbanken AB Class B 5,656   70
ACS Actividades de Construccion y         Swedbank AB Class A 53,641   1,127
Servicios SA 13,489   387 Swedish Match AB 6,661   243
Aena SA(Þ) 6,569   946 Tele2 AB Class B 8,585   72
Almirall SA 4,770   77 Telefonaktiebolaget LM Ericsson Class B 163,920   1,222
Amadeus IT Holding SA Class A 22,597   1,060 Telia Co. AB 246,629   1,125
Banco Bilbao Vizcaya Argentaria SA         Trelleborg AB Class B 24,296   443
- ADR 377,842   2,204 Volvo AB Class B 109,886   1,171
Banco de Sabadell SA - ADR 486,641   665           19,922
 
Banco Santander SA - ADR 745,101   3,145 Switzerland - 8.0%          
Bankia SA Class A 426,585   327 ABB, Ltd. 72,523   1,541
CaixaBank SA 180,424   452 Actelion, Ltd. 8,126   1,441
Corp. Financiera Alba SA 5,491   233 Alpiq Holding AG(Æ) 1,140   86
Ebro Foods SA 23,266   530 Aryzta AG 3,155   119
Enagas SA 2,516   77 Baloise Holding AG 5,910   665
Endesa SA - ADR 54,495   1,143 Barry Callebaut AG 145   190
Ferrovial SA 22,681   469 Basellandschaftliche Kantonalbank 855   809
Gamesa Corp. Tecnologica SA 25,981   549 Basler Kantonalbank 6,802   474
Gas Natural SDG SA 47,058   973 Berner Kantonalbank AG 1,072   209
Iberdrola SA 555,002   3,806 Bucher Industries AG 1,142   283
Industria de Diseno Textil SA 61,642   2,129 Chocoladefabriken Lindt & Spruengli          
Red Electrica Corp. SA 10,350   237 AG 85   1,083
Repsol SA - ADR 135,840   1,722 Cie Financiere Richemont SA 8,062   490
Telefonica SA - ADR 90,617   886 Coca-Cola HBC AG - ADR 20,936   432
Zardoya Otis SA 13,699   134 Credit Suisse Group AG 65,149   751
        22,541 Emmi AG 119   77
 
Sweden - 2.6%         EMS-Chemie Holding AG 348   190
Alfa Laval AB 6,197   98 Galenica AG 602   776
Assa Abloy AB Class B 50,218   1,102 Geberit AG 1,654   638
Atlas Copco AB Class A 6,637   186 Georg Fischer AG 439   358
Atlas Copco AB Class B 3,059   78 Givaudan SA 328   674
Autoliv, Inc. 5,685   601 Glencore PLC(Æ) 1,012,509   2,528
Axfood AB 18,834   338 Graubuendner Kantonalbank 215   377
BillerudKorsnas AB 11,282   196 Kuehne & Nagel International AG 4,344   609

 

See accompanying notes which are an integral part of this quarterly report.

322 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
    Principal   Fair     Principal   Fair
    Amount ($)   Value     Amount ($)   Value
    or Shares   $     or Shares   $
LafargeHolcim, Ltd. 20,513   976 Fiat Chrysler Automobiles NV(Æ) 116,286   747
Lonza Group AG 3,896   734 GKN PLC 170,998   654
Nestle SA 152,894   12,257 GlaxoSmithKline PLC - ADR 232,935   5,202
Novartis AG 100,919   8,354 Great Portland Estates PLC(ö) 25,896   234
Partners Group Holding AG 1,184   542 Greene King PLC 45,653   491
Roche Holding AG 35,180   8,988 Halma PLC 42,689   592
Schindler Holding AG 6,303   1,212 Hammerson PLC(ö) 61,006   450
SFS Group AG 2,626   200 HSBC Holdings PLC 1,281,956   8,382
SGS SA 233   515 Imperial Tobacco Group PLC 37,220   1,961
Sika AG 96   450 Inchcape PLC 88,585   789
Sonova Holding AG 2,438   334 Informa PLC 49,616   469
St. Galler Kantonalbank AG 360   148 InterContinental Hotels Group PLC 1,946   78
Straumann Holding AG 479   183 International Consolidated Airlines        
Sulzer AG 1,642   167 Group SA 68,434   367
Swatch Group AG (The) Class B 2,609   683 Intertek Group PLC 15,230   730
Swiss Life Holding AG 3,354   766 ITV PLC 141,934   368
Swiss Prime Site AG Class A 4,652   427 J Sainsbury PLC 295,912   877
Swiss Re AG 40,275   3,380 John Wood Group PLC 54,196   475
Swisscom AG 965   475 Johnson Matthey PLC 22,884   992
Syngenta AG 1,058   416 Kingfisher PLC 365,953   1,626
TE Connectivity, Ltd. 13,635   822 Land Securities Group PLC(ö) 54,985   795
UBS Group AG(Æ) 183,933   2,533 Legal & General Group PLC 528,294   1,436
Wolseley PLC - ADR 11,733   653 Liberty Global PLC Class A(Æ) 8,798   279
Zurich Insurance Group AG 9,939   2,388 Liberty Global PLC Class C(Æ) 9,012   279
        62,403 Liberty Global PLC LiLAC(Æ) 3,863   135
          Lloyds Banking Group PLC 1,926,598   1,354
United Kingdom - 13.9%         Manchester United PLC Class A 5,381   84
3i Group PLC 178,395   1,455 Marks & Spencer Group PLC 112,084   473
Admiral Group PLC 12,994   372 Meggitt PLC 75,511   437
Amec Foster Wheeler PLC - GDR 16,698   99 Micro Focus International PLC 14,602   374
Anglo American PLC(Æ) 60,915   677 National Grid PLC 127,558   1,830
ARM Holdings PLC 85,492   1,892 Next PLC 4,191   278
Ashtead Group PLC 18,462   292 Old Mutual PLC 519,243   1,447
Associated British Foods PLC 12,691   451 Pearson PLC 86,179   1,005
AstraZeneca PLC 26,272   1,762 Persimmon PLC Class A 32,674   729
Auto Trader Group PLC(Þ) 17,120   84 Petrofac, Ltd. 34,300   338
Aviva PLC 314,679   1,627 Prudential PLC 183,514   3,230
Babcock International Group PLC 34,372   441 Reckitt Benckiser Group PLC 26,775   2,594
BAE Systems PLC 115,980   819 RELX NV 46,570   842
Barclays PLC 790,792   1,615 RELX PLC 79,432   1,508
Barratt Developments PLC 79,237   458 Rentokil Initial PLC 165,018   469
BBA Aviation PLC 50,634   159 Rightmove PLC 6,973   374
Bellway PLC 10,089   280 Rio Tinto PLC 84,898   2,764
Berkeley Group Holdings PLC 12,177   432 Rolls-Royce Holdings PLC 74,874   783
Booker Group PLC 37,689   87 Royal Bank of Scotland Group PLC(Æ) 175,825   447
BP PLC 1,050,916   5,962 Royal Mail PLC 128,032   863
British American Tobacco PLC 78,199   4,991 RSA Insurance Group PLC 151,950   1,000
British Land Co. PLC (The)(ö) 79,238   703 SABMiller PLC - ADR 29,146   1,702
Britvic PLC 14,249   118 Sage Group PLC (The) 83,717   789
BT Group PLC 229,313   1,247 Scottish & Southern Energy PLC 20,945   420
BTG PLC(Æ) 9,764   86 Segro PLC(ö) 74,854   438
Bunzl PLC 15,968   499 Severn Trent PLC Class H 11,909   386
CNH Industrial NV 10,980   78 Shaftesbury PLC(ö) 46,053   569
Coca-Cola European Partners PLC 11,491   429 Sky PLC 86,075   1,048
Compass Group PLC 48,326   918 Smith & Nephew PLC 63,794   1,049
CYBG PLC(Æ) 95,594   330 Smiths Group PLC 32,308   539
Derwent London PLC(ö) 6,978   262 Spectris PLC 12,092   301
Diageo PLC 58,767   1,680 Standard Chartered PLC(Æ) 180,826   1,446
Direct Line Insurance Group PLC 171,353   793 Standard Life PLC 59,214   237
DS Smith PLC Class F 75,704   393 Subsea 7 SA(Æ) 96,968   1,036

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 323

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)     Amounts in thousands (except share amounts)    
      Principal   Fair Principal   Fair
      Amount ($)   Value Amount ($)   Value
      or Shares   $ or Shares   $
Tate & Lyle PLC 42,044   402      
Taylor Wimpey PLC 323,555   662 Other Assets and Liabilities, Net    
Tesco PLC(Æ) 336,163   693 - 0.6% 4,803
Travis Perkins PLC 18,982   392 Net Assets - 100.0%   778,724
UBM PLC 17,495   155      
Unilever NV 54,854   2,539      
Unilever PLC 45,195   2,113      
United Utilities Group PLC 16,518   222      
Vodafone Group PLC 1,332,074   4,052      
Weir Group PLC (The) 3,715   72      
William Hill PLC 26,951   114      
Wm Morrison Supermarkets PLC 301,562   741      
WPP PLC 122,462   2,750      
          107,989      
 
United States - 0.6%                
Ball Corp. 2,455   173      
Carnival PLC 35,018   1,687      
Flextronics International, Ltd.(Æ) 33,113   420      
Samsonite International SA 56,100   159      
Seagate Technology PLC 15,663   502      
Sensata Technologies Holding NV(Æ) 7,515   285      
Shire PLC - ADR 27,719   1,791      
          5,017      
 
Total Common Stocks                
(cost $760,872)         738,104      
 
Investments in Other Funds - 1.2%              
Vanguard FTSE Emerging Markets                
 
Total ETF Investments in Other Funds 243,494   9,019      
(cost $8,928)         9,019      
 
Preferred Stocks - 0.8%                
Germany - 0.6%                
Fuchs Petrolub SE 5,714   241      
Henkel AG & Co. KGaA 8,473   1,055      
Porsche Automobil Holding SE 24,447   1,279      
Sartorius AG 5,852   467      
Volkswagen AG 11,919   1,677      
          4,719      
 
Japan - 0.1%                
Shinkin Central Bank Class A 583   1,294      
 
Sweden - 0.1%                
Fastighets AB Balder 13,305   524      
 
Total Preferred Stocks                
(cost $7,780)         6,537      
 
Short-Term Investments - 2.6%                
United States - 2.6%                
Russell U.S. Cash Management Fund 20,261,232 (8) 20,261      
Total Short-Term Investments                
(cost $20,261)         20,261      
 
Total Investments 99.4%                
(identified cost $797,841)         773,921      

 

See accompanying notes which are an integral part of this quarterly report.

324 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts                    
 
Amounts in thousands (except contract amounts)                    
                  Unrealized  
                  Appreciation  
    Number of   Notional   Expiration (Depreciation)  
    Contracts   Amount   Date $  
Long Positions                    
Euro STOXX 50 Index Futures   95 EUR 2,834 09/16 29  
FTSE 100 Index Futures   22 GBP 1,469 09/16 4  
MSCI EAFE Mini Index Futures   193 USD 16,214 09/16 377  
S&P/TSX 60 Index Futures   41 CAD 6,934 09/16 62  
SPI 200 Index Futures   37 AUD 5,105 09/16 256  
TOPIX Index Futures   15 JPY 199,274 09/16 6  
Short Positions                    
Hang Seng Index Futures   14 HKD 15,242 08/16 24  
S&P 500 E-Mini Index Futures   118 USD 12,792 09/16 (351 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)               407  
 
Foreign Currency Exchange Contracts                    
Amounts in  thousands                    
                  Unrealized  
                  Appreciation  
    Amount     Amount     (Depreciation)  
Counterparty   Sold     Bought   Settlement Date $  
Bank of America USD 223   AUD 300   09/21/16 5  
Bank of America USD 3,427   AUD 4,615   09/21/16 75  
Bank of America USD 76   CAD 100   09/21/16 —  
Bank of America USD 77   CAD 100   09/21/16 —  
Bank of America USD 78   CAD 100   09/21/16 (1 )
Bank of America USD 745   CAD 950   09/21/16 (17 )
Bank of America USD 3,103   CAD 4,000   09/21/16 (39 )
Bank of America USD 2,023   DKK 13,500   09/21/16 10  
Bank of America USD 337   EUR 300   09/21/16 (1 )
Bank of America USD 567   EUR 500   09/21/16 (7 )
Bank of America USD 2,057   GBP 1,400   09/21/16 (202 )
Bank of America USD 2,537   GBP 1,900   09/21/16 (20 )
Bank of America USD 3,743   HKD 29,000   09/21/16 (3 )
Bank of America USD 1,135   JPY 120,000   09/21/16 43  
Bank of America USD 957   NOK 8,000   09/21/16 (8 )
Bank of America USD 1,062   SEK 9,000   09/21/16 (8 )
Bank of America AUD 100   USD 74   09/21/16 (4 )
Bank of America AUD 500   USD 367   09/21/16 (13 )
Bank of America AUD 1,200   USD 914   09/21/16 3  
Bank of America CAD 100   USD 78   09/21/16 1  
Bank of America CAD 100   USD 79   09/21/16 4  
Bank of America CAD 100   USD 76   09/21/16 (1 )
Bank of America CAD 100   USD 77   09/21/16 1  
Bank of America CAD 100   USD 78   09/21/16 2  
Bank of America CAD 150   USD 117   09/21/16 4  
Bank of America CAD 200   USD 153   09/21/16 —  
Bank of America CAD 300   USD 231   09/21/16 1  
Bank of America CAD 300   USD 230   09/21/16 —  
Bank of America CHF 4,000   USD 4,091   09/21/16 (48 )
Bank of America EUR 1,700   USD 1,928   09/21/16 23  
Bank of America EUR 3,400   USD 3,788   09/21/16 (21 )
Bank of America GBP 1,200   USD 1,763   09/21/16 173  
Bank of America JPY 100,000   USD 960   09/21/16 (22 )
Bank of America JPY 300,000   USD 2,852   09/21/16 (93 )
Bank of America KRW 1,100,000   USD 950   09/21/16 (39 )
Bank of America SGD 300   USD 221   09/21/16 (3 )
Bank of America SGD 2,000   USD 1,489   09/21/16 (2 )
Bank of Montreal USD 77   CAD 100   09/21/16 —  
Bank of New York CAD 100   USD 77   09/21/16 —  
BNP Paribas USD 299   AUD 400   09/21/16 4  
BNP Paribas USD 3,426   AUD 4,615   09/21/16 76  
Brown Brothers Harriman CAD 80   USD 63   09/21/16 1  

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 325

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Brown Brothers Harriman CAD 350 USD 275 09/21/16 7  
Commonwealth Bank of Australia AUD 80 USD 59 09/21/16 (2 )
Commonwealth Bank of Australia CAD 200 USD 154 09/21/16 1  
HSBC USD 115 CAD 150 09/21/16 —  
HSBC USD 1,073 CNY 7,200 09/21/16 11  
HSBC USD 1,973 JPY 200,000 09/21/16 (9 )
HSBC AUD 400 USD 293 09/21/16 (10 )
HSBC AUD 600 USD 440 09/21/16 (16 )
HSBC BRL 1,900 USD 527 09/21/16 (51 )
HSBC CNY 7,500 USD 1,136 09/21/16 7  
HSBC INR 57,000 USD 841 09/21/16 (7 )
Royal Bank of Canada USD 1,897 EUR 1,700 09/21/16 7  
Royal Bank of Canada USD 1,920 GBP 1,400 09/21/16 (66 )
Royal Bank of Canada AUD 200 USD 149 09/21/16 (3 )
Royal Bank of Canada EUR 1,000 USD 1,116 09/21/16 (4 )
Royal Bank of Canada GBP 1,300 USD 1,783 09/21/16 61  
Royal Bank of Canada JPY 100,000 USD 981 09/21/16 (1 )
Standard Chartered USD 1,038 AUD 1,400 09/21/16 24  
Standard Chartered USD 934 CAD 1,200 09/21/16 (15 )
Standard Chartered USD 45 CNY 300 09/21/16 —  
Standard Chartered USD 77 DKK 500 09/21/16 (1 )
Standard Chartered USD 570 EUR 500 09/21/16 (9 )
Standard Chartered USD 3,648 GBP 2,500 09/21/16 (337 )
Standard Chartered USD 41 INR 2,800 09/21/16 1  
Standard Chartered USD 64 KRW 75,000 09/21/16 3  
Standard Chartered USD 97 NOK 800 09/21/16 (2 )
Standard Chartered USD 43 SEK 350 09/21/16 (2 )
Standard Chartered USD 31 TWD 1,000 09/21/16 —  
Standard Chartered USD 20 ZAR 300 09/21/16 2  
Standard Chartered AUD 2,300 USD 1,706 09/21/16 (39 )
Standard Chartered CAD 2,300 USD 1,791 09/21/16 29  
Standard Chartered CHF 200 USD 210 09/21/16 3  
Standard Chartered GBP 1,800 USD 2,626 09/21/16 242  
Standard Chartered ILS 200 USD 52 09/21/16 (1 )
Standard Chartered NZD 350 USD 247 09/21/16 (5 )
State Street USD 823 AUD 1,100 09/21/16 11  
State Street USD 5,713 AUD 7,700 09/21/16 130  
State Street USD 57 BRL 200 09/21/16 3  
State Street USD 77 CAD 100 09/21/16 —  
State Street USD 77 CAD 100 09/21/16 (1 )
State Street USD 78 CAD 100 09/21/16 (1 )
State Street USD 768 CAD 1,000 09/21/16 (2 )
State Street USD 1,785 CAD 2,285 09/21/16 (35 )
State Street USD 5,548 CAD 7,100 09/21/16 (108 )
State Street USD 5,719 CAD 7,450 09/21/16 (12 )
State Street USD 779 CHF 750 09/21/16 (3 )
State Street USD 865 CHF 850 09/21/16 14  
State Street USD 2,692 CHF 2,600 09/21/16 (2 )
State Street USD 165 EUR 150 09/21/16 3  
State Street USD 665 EUR 600 09/21/16 7  
State Street USD 2,982 EUR 2,700 09/21/16 43  
State Street USD 4,638 EUR 4,200 09/21/16 67  
State Street USD 869 GBP 600 09/21/16 (74 )
State Street USD 1,900 GBP 1,450 09/21/16 21  
State Street USD 6,399 GBP 4,400 09/21/16 (571 )
State Street USD 52 ILS 200 09/21/16 1  
State Street USD 1,152 ILS 4,400 09/21/16 3  
State Street USD 65 JPY 7,000 09/21/16 3  
State Street USD 1,893 JPY 200,000 09/21/16 71  
State Street USD 3,549 JPY 375,000 09/21/16 133  
State Street USD 710 NOK 5,800 09/21/16 (22 )
State Street USD 210 NZD 300 09/21/16 6  
State Street USD 1,942 NZD 2,800 09/21/16 76  

 

See accompanying notes which are an integral part of this quarterly report.

326 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street USD 2,201 NZD   3,200 09/21/16 104  
State Street USD 3,762 SGD   5,100 09/21/16 40  
State Street AUD 1,500 USD   1,123 09/21/16 (16 )
State Street CAD 200 USD   156 09/21/16 3  
State Street CAD 300 USD   234 09/21/16 4  
State Street CAD 500 USD   390 09/21/16 7  
State Street DKK 14,000 USD   2,145 09/21/16 37  
State Street EUR 500 USD   570 09/21/16 10  
State Street EUR 18,300 USD   20,828 09/21/16 327  
State Street GBP 1,300 USD   1,703 09/21/16 (18 )
State Street HKD 14,800 USD   1,909 09/21/16 1  
State Street HKD 40,500 USD   5,225 09/21/16 2  
State Street INR 500 USD   7 09/21/16 —  
State Street INR 2,000 USD   29 09/21/16 —  
State Street JPY 1,500,000 USD   14,014 09/21/16 (714 )
State Street NOK 9,000 USD   1,057 09/21/16 (10 )
State Street NOK 28,000 USD   3,442 09/21/16 123  
State Street SEK 3,200 USD   395 09/21/16 20  
State Street SEK 10,200 USD   1,187 09/21/16 (8 )
State Street SEK 12,500 USD   1,544 09/21/16 80  
State Street TWD 32,000 USD   996 09/21/16 (13 )
State Street ZAR 8,100 USD   532 09/21/16 (46 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts         (614 )

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 327

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                  Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Common Stocks                            
Australia $ —   $ 40,882   $ 705 $ — $   41,587  
Austria   —     3,931     —   —     3,931  
Belgium   —     9,166     —   —     9,166  
Bermuda   —     874     —   —     874  
Canada   56,434     —     —   —     56,434  
Cayman Islands   —     484     —   —     484  
Curacao   —     157     —   —     157  
Denmark   —     13,301     —   —     13,301  
Finland   —     9,349     —   —     9,349  
France   752     64,408     —   —     65,160  
Germany   —     59,966     —   —     59,966  
Hong Kong   —     25,052     39   —     25,091  
Ireland   2,311     5,535     —   —     7,846  
Israel   596     3,645     —   —     4,241  
Italy   —     15,308     —   —     15,308  
Japan   —     159,632     445   —     160,077  
Jersey   —     1,128     —   —     1,128  
Luxembourg   —     1,862     —   —     1,862  
Netherlands   1,322     24,927     —   —     26,249  
New Zealand   —     1,290     —   —     1,290  
Norway   —     5,679     —   —     5,679  
Portugal   —     2,705     3   —     2,708  
Singapore   —     7,243     284   —     7,527  
South Africa   —     817     —   —     817  
Spain   —     22,541     —   —     22,541  
Sweden   601     19,321     —   —     19,922  
Switzerland   822     61,581     —   —     62,403  
United Kingdom   1,206     106,783     —   —     107,989  
United States   1,380     3,637     —   —     5,017  
Investments in Other Funds 9,019   —   — —   9,019  
Preferred Stocks —   6,537   — —   6,537  
Short-Term Investments —   —   — 20,261   20,261  
Total Investments 74,443   677,741   1,476 20,261   773,921  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 758   —   — —   758  
Foreign Currency Exchange Contracts —   2,174   — —   2,174  
Liabilities                            
Futures Contracts (351 ) —   — —   (351 )
Foreign Currency Exchange Contracts —   (2,788 ) — —   (2,788 )
Total Other Financial Instruments* $ 407   $ (614 ) $ — $ — $   (208 )

 

*   Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.

See accompanying notes which are an integral part of this quarterly report.

328 Select International Equity Fund

 

Russell Investment Company
Select International Equity Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings          
 
Amounts in thousands            
 
      Fair Value      
          Practical  
Portfolio Summary Level 1 Level 2   Level 3 Expedient (a) Total

 

(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.
For disclosure on transfers between Levels 1, 2 and 3 during the period ended July 31, 2016, see note 2 in the Notes to Quarterly
Report.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended July 31,
2016 were less than 1% of net assets.

Amounts in thousands      
  Fair Value  
Sector Exposure   $  
Consumer Discretionary 98,789
Consumer Staples 60,979
Energy 48,366
Financial Services 208,007
Health Care 76,501
Materials and Processing 67,709
Producer Durables 101,754
Technology 36,107
Utilities 55,448
Short-Term Investments 20,261
Total Investments 773,921

 

See accompanying notes which are an integral part of this quarterly report.

Select International Equity Fund 329

 

Russell Investment Company
Russell Funds

Notes to Schedules of Investments — July 31, 2016 (Unaudited)

Footnotes:
(Æ) Nonincome-producing security.
(Ï) Forward commitment.
(Ê) Adjustable or floating rate security. Rate shown reflects rate in effect at period end.
(ƒ) Perpetual floating rate security. Rate shown reflects rate in effect at period end.
(ö) Real Estate Investment Trust (REIT).
(µ) Bond is insured by a guarantor.
(Ø) In default.
(ç) At amortized cost, which approximates market value.
(~ ) Rate noted is yield-to-maturity from date of acquisition.
(æ) Pre-refunded: These bonds are collateralized by U.S. Treasury securities, which are held in escrow by a trustee and used to pay
principal and interest in the tax-exempt issue and to retire the bonds in full at the earliest refunding date.
(§) All or a portion of the shares of this security are pledged as collateral in connection with futures contracts purchased (sold) or swap
contracts entered into by the Fund.
(x) The security is purchased with the cash collateral from the securities loaned.
(Ñ) All or a portion of the shares of this security are on loan.
(Þ) Restricted security. Security may have contractual restrictions on resale, may have been offered in a private placement transaction,
and is not registered under the Securities Act of 1933.
(Å) Illiquid and restricted security.
(Û) All or a portion of the shares of this security are pledged as collateral in connection with securities sold short.
(ÿ) Notional Amount in thousands.
(8) Unrounded units.
(å) Currency balances were pledged in connection with futures contracts purchased (sold), options written, or swaps entered into by the
Fund.
(ì) All or a portion of the shares of this security are pledged as collateral in connection with options written contracts.
(v) Loan agreement still pending. Rate not available at period end.

Abbreviations:
ADR - American Depositary Receipt
ADS - American Depositary Share
BBR - Bank Bill Rate
BBSW - Bank Bill Swap Reference Rate
BUBOR –Budapest Interbank Offered Rate
CIBOR - Copenhagen Interbank Offered Rate
CME - Chicago Mercantile Exchange
CMO - Collateralized Mortgage Obligation
CVO - Contingent Value Obligation
EMU - European Economic and Monetary Union
EURIBOR - Euro Interbank Offered Bank
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
GSCI – Goldman Sachs Commodity Index
HIBOR – Hong Kong Interbank Offer Rate
JIBOR - Johannesburg Interbank Agreed Rate
KSDA – Korean Securities Dealers Association
LIBOR - London Interbank Offered Rate
MIBOR - Mumbai Interbank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
PIK - Payment in Kind
REMIC - Real Estate Mortgage Investment Conduit
STIBOR – Stockholm Interbank Offered Rate
STRIP - Separate Trading of Registered Interest and Principal of Securities
SFE - Sydney Futures Exchange
TBA - To Be Announced Security
UK - United Kingdom
WTI – West Texas Intermediate

330 Notes to Schedules of Investments

 

Russell Investment Company
Russell Funds

Notes to Schedules of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Abbreviations:    
ARS - Argentine peso HKD - Hong Kong dollar PHP - Philippine peso
AUD - Australian dollar HUF - Hungarian forint PKR - Pakistani rupee
BRL - Brazilian real IDR - Indonesian rupiah PLN - Polish zloty
CAD - Canadian dollar ILS - Israeli shekel RUB - Russian ruble
CHF - Swiss franc INR - Indian rupee SEK - Swedish krona
CLP - Chilean peso ISK - Icelandic krona SGD - Singapore dollar
CNY - Chinese renminbi yuan ITL - Italian lira SKK - Slovakian koruna
COP - Colombian peso JPY - Japanese yen THB - Thai baht
CRC - Costa Rican colon KES - Kenyan schilling TRY - Turkish lira
CZK - Czech koruna KRW - South Korean won TWD - Taiwanese dollar
DKK - Danish krone MXN - Mexican peso USD - United States dollar
DOP - Dominican peso MYR - Malaysian ringgit UYU – Uruguayan peso
EGP - Egyptian pound NOK - Norwegian krone VEB - Venezuelan bolivar
EUR - Euro NGN – Nigerian naira VND - Vietnamese dong
GBP - British pound sterling NZD - New Zealand dollar ZAR - South African rand
GHS - Ghana cedi PEN - Peruvian nuevo sol  

 

Notes to Schedules of Investments 331

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report — July 31, 2016 (Unaudited)

1. Organization
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 40 different investment
portfolios referred to as funds (each a “Fund” and collectively the “Funds”). These financial statements report on 26 of these
Funds. The Investment Company is registered under the Investment Company Act of 1940, (as amended (“Investment Company
Act”), as an open-end management investment company. It is organized and operated as a Massachusetts business trust under a
Second Amended and Restated Master Trust Agreement dated October 1, 2008, as amended (“Master Trust Agreement”), and the
provisions of Massachusetts law governing the operation of a Massachusetts business trust. The Investment Company’s Master
Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest. Each
of the Funds is diversified. Under the Investment Company Act a diversified company is defined as a management company
which meets the following requirements: at least 75% of the value of their total assets is represented by cash and cash items
(including receivables), government securities, securities of other investment companies, and other securities for the purposes of
this calculation limited in respect of any one issuer to an amount not greater in value than five percent of the value of the total assets
of such management company and to not more than 10% of the outstanding voting securities of such issuer.

2. Significant Accounting Policies
The following is a summary of the significant accounting policies consistently followed by the Funds in the preparation of this
Quarterly Report. These policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require
the use of management estimates and assumptions at the date of the financial statements. Actual results could differ from those
estimates. The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting guidance
applicable to investment companies. The following is a summary of the significant accounting policies consistently followed by each
Fund in the preparation of its quarterly report.

Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair
value procedures. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell
Investments Fund Services, LLC (“RIFUS”).

U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to
valuation methods and requires a separate disclosure of the fair value hierarchy for each major category of assets and liabilities,
that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy
are defined as follows:

• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable, which may include, but are not
limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets
or liabilities in markets that are not active, and inputs such as interest rates, yield curves, implied volatilities, credit spreads
or other market corroborated inputs.

• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available, which may include assumptions made by RIFUS, acting at the discretion of the Board,
that are used in determining the fair value of investments.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for
example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and
other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or
unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised
in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that
is significant to the fair value measurement in its entirety.

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have
not been classified in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to
the amounts presented in the Schedule of Investments.

332 Notes to Quarterly Report

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

The valuation techniques and significant inputs used in determining the fair market values of financial instruments categorized as
Level 1 and Level 2 of the fair value hierarchy are as follows:

Equity securities, including common and preferred stock, that are traded on a national securities exchange (or reported on the
NASDAQ national market), are stated at the last reported sales price on the day of valuation. To the extent these securities are
actively traded, and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Preferred
stock and other equities traded on inactive markets or valued by reference to similar instruments are categorized as Level 2 of the
fair value hierarchy. Certain foreign equity securities may be fair valued using a pricing service that considers the correlation of
the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary
Receipts, financial futures, exchange-traded funds, and the movement of certain indexes of securities, based on the statistical
analysis of historical relationships. Foreign equity securities prices as described above are categorized as Level 2 of the fair value
hierarchy.

Fixed income securities including corporate, convertible, U.S. government agency, municipal bonds and notes, U.S. treasury
obligations, sovereign issues, bank loans, bank notes and non-U.S. bonds are normally valued by pricing service providers that use
broker dealer quotations or valuation estimates from their internal pricing models. The pricing service providers’ internal models
use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads and
default rates. Such fixed income securities that use pricing service internal models as described above are categorized as Level
2 of the fair value hierarchy. Such fixed income securities that use broker dealer quotations are categorized as Level 3 of the fair
value hierarchy.

Fixed income securities purchased on a delayed-delivery basis and marked-to-market daily until settlement at the forward settlement
date are categorized as Level 2 of the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These
securities are also normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their
internal pricing models. The pricing models for these securities usually consider tranche-level attributes, including estimated cash
flows of each tranche, market-based yield spreads for each tranche, and current market data, as well as incorporate deal collateral
performance, as available. Mortgage and asset-backed securities that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy.

Investments in privately held investment funds will be valued based upon the net asset value (“NAV”) of such investments and
are categorized as Level 2 of the fair value hierarchy if the privately-held investment funds’ redemption terms require 90 days
notice or less. If the redemption terms require greater than 90 days notice for redemptions, then the investment will be categorized
as Level 3. The Funds have adopted the authoritative guidance under U.S. GAAP for estimating the fair value of investments in
funds that have calculated NAV per share in accordance with the specialized accounting guidance for investment companies.
Accordingly, the Funds estimate the fair value of an investment in a fund using the NAV per share without further adjustment as a
practical expedient, if the NAV per share of the investment is determined in accordance with the specialized accounting guidance
for investment companies as of the reporting entity’s measurement date.

Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair market
value. These investments are categorized as Level 2 of the fair value hierarchy.

Derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements
that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors.
Derivatives may be classified into two groups depending upon the way that they are traded: privately traded over-the-counter
(“OTC”) derivatives that do not go through an exchange or intermediary and exchange-traded derivatives that are traded through
specialized derivatives exchanges or other regulated exchanges. OTC derivatives are normally valued on the basis of broker dealer
quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative
instrument can be estimated by a pricing service provider using a series of techniques, including simulation pricing models.
The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest
rates, yield curves, dividends and exchange rates. OTC derivatives that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy, with the exception of foreign currency spot contracts which
are categorized as Level 1 of the fair value hierarchy. OTC derivatives that use broker dealer quotations are categorized as level 3 of
the fair value hierarchy. Exchange-traded derivatives are valued based on the last reported sales price on the day of valuation and
are categorized as Level 1 of the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at
the daily settlement price determined by the respective exchange. For centrally cleared credit default swaps, the clearing facility
requires its members to provide actionable levels across complete term structures. These levels along with external third party
prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally

Notes to Quarterly Report 333

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index
swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are
categorized as Level 2 of the fair value hierarchy.

Events or circumstances affecting the values of Fund securities that occur between the closing of the principal markets on which
they trade and the time the NAV of Fund shares is determined may be reflected in the calculation of NAV for each applicable
Fund when the Fund deems that the particular event or circumstance would materially affect such Fund’s NAV. Funds that invest
primarily in frequently traded exchange-listed securities will use fair value pricing in limited circumstances since reliable market
quotations will often be readily available. Funds that invest in foreign securities are likely to use fair value pricing more often since
significant events may occur between the close of foreign markets and the time of pricing which would trigger fair value pricing
of the foreign securities. Although there are observable inputs assigned on a security level, prices are derived from factors using
proprietary models or matrix pricing. For this reason, significant events will cause movement between Levels 1 and 2. Significant
events that could trigger fair value pricing of one or more securities include: any market movement of the U.S. securities market;
a company development such as a material business development; a natural disaster or emergency situation; or an armed conflict.

The NAV of a Fund’s portfolio that includes foreign securities may change on days when shareholders will not be able to purchase
or redeem Fund shares, since foreign securities can trade on non-business days.

The Russell U.S. Core Equity, Russell U.S. Defensive Equity, Russell U.S. Dynamic Equity, Russell U.S. Strategic Equity, Russell
U.S. Large Cap Equity, Russell U.S. Mid Cap Equity, Russell International Developed Markets, Russell Tax-Managed U.S. Large
Cap, Russell Tax-Managed U.S. Mid & Small Cap, Russell Global Opportunistic Credit, Russell Tax Exempt High Yield Bond,
Russell Tax Exempt Bond, Russell Commodity Strategies, Russell Global Real Estate Securities, Russell Strategic Call Overwriting,
and Select U.S. Equity Funds had no transfers between Levels 1, 2 and 3 for the period ended July 31, 2016.

The Russell Investment Grade Bond, Russell Short Duration Bond, Russell Strategic Bond, Russell Emerging Markets, Russell
Tax-Managed International Equity, Russell Multi-Strategy Income, and Select International Equity Funds had transfers from Level
2 into Level 3 representing financials instruments for which pricing was applied using observable inputs that became unobservable.
The Russell U.S. Small Cap Equity Fund had warrants at zero value with transfers from Level 2 to Level 3. The amounts transferred
were as follows:

Russell Emerging Markets Fund $ 1,418,901
Russell Tax-Managed International Equity Fund   380,500
Russell Strategic Bond Fund   11,136,328
Russell Investment Grade Bond Fund   283
Russell Short Duration Bond Fund   27
Russell Multi-Strategy Income Fund   90,220
Select International Equity Fund   1,433,209

 

The Russell Investment Grade Bond, Russell Short Duration Bond, Russell Strategic Bond, Russell Global Equity, and Russell
Global Infrastructure Funds had transfers out of Level 3 into Level 2 representing financial instruments for which third party pricing
became available. The amounts transferred were as follows:

Russell Global Equity Fund $ 490,785
Russell Strategic Bond Fund   11,362,476
Russell Investment Grade Bond Fund   1,642,187
Russell Short Duration Bond Fund   3,170,239
Russell Global Infrastructure Fund   10,279,874

 

Level 3 Fair Value Investments
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of
the fair value hierarchy are as follows:

Securities and other assets for which market quotes are not readily available, or are not reliable, are valued at fair value as
determined in good faith by RIFUS and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not
readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or
broker quotes). When RIFUS applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV,
securities will not be priced on the basis of quotes from the primary market in which they are traded, but instead may be priced by
another method that RIFUS believes accurately reflects fair value and will be categorized as Level 3 of the fair value hierarchy. Fair
value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot
guarantee that fair values determined by RIFUS would accurately reflect the price that a Fund could obtain for a security if it were

334 Notes to Quarterly Report

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ
from the value that would be realized if the security was sold.

RIFUS employs third party pricing vendors to provide fair value measurements. RIFUS oversees third-party pricing service
providers in order to support the valuation process throughout the year.

The significant unobservable input used in fair value measurement of certain of the Funds’ preferred equity securities is the
redemption value calculated on a fully-diluted basis if converted to common stock. Significant increases or decreases in the
redemption value would have a direct and proportional impact to fair value.

The significant unobservable input used in the fair value measurement of certain Funds’ debt securities is the yield to worst ratio.
Significant increases (decreases) in the yield to worst ratio would result in a lower (higher) fair value measurement.

These significant unobservable inputs are further disclosed in the Presentation of Portfolio Holdings for each respective Fund as
applicable.

If third party evaluated vendor pricing is neither available nor deemed to be indicative of fair value, RIFUS may elect to obtain
indicative market quotations (“broker quotes”) directly from the broker or passed through from a third party vendor. In the event
that the source of fair value is from a single source broker quote, these securities are classified as Level 3 per the fair value
hierarchy. Broker quotes are typically received from established market participants. Although independently received on a daily
basis, RIFUS does not have the transparency to view the underlying inputs which support the broker quotes. Significant changes
in the broker quote would have direct and proportional changes in the fair value of the security. There is a third-party pricing
exception to the quantitative disclosure requirement when prices are not determined by the reporting entity. RIFUS is exercising
this exception and has made a reasonable attempt to obtain quantitative information from the third party pricing vendors regarding
the unobservable inputs used.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances
for reported fair values that present changes attributable to total realized and unrealized gains or losses, purchases and sales, and
transfers in/out of the Level 3 category during the period. Additionally, U.S. GAAP requires quantitative information regarding the
significant unobservable inputs used in the determination of fair value of assets categorized as Level 3 in the fair value hierarchy. In
accordance with the requirements of U.S. GAAP, a fair value hierarchy, a Level 3 reconciliation and an additional disclosure about
fair value measurements, if any, has been included in the Presentation of Portfolio Holdings for each respective Fund.

Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the
financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities
transactions, if applicable, are recorded on the basis of specific identified cost incurred by Russell Investment Management, LLC
("RIM") or each money manager within a particular Fund.

Investment Income
Dividend income is recorded net of applicable withholding taxes on the ex-dividend date, except that certain dividends from foreign
securities are recorded as soon as the Funds are informed of the dividend, subsequent to the ex-dividend date. Interest income is
recorded daily on the accrual basis. The Funds classify gains and losses realized on prepayments received on mortgage-backed
securities as an adjustment to interest income. All premiums and discounts, including original issue discounts, are amortized/
accreted using the effective interest method. Debt obligation securities may be placed in a non-accrual status and related interest
income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of
interest has become doubtful.

Foreign Currency Translations
The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts and transactions of the Funds are
translated into U.S. dollars on the following basis:

(a) Fair value of investment securities, other assets and liabilities at the closing rate of exchange on the valuation date.

(b) Purchases and sales of investment securities and income at the closing rate of exchange prevailing on the respective trade
dates of such transactions.

Net realized gains or losses from foreign currency-related transactions arise from: sales and maturities of short-term securities;
sales of foreign currencies; currency gains or losses realized between the trade and settlement dates on securities transactions; the
difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S.
dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions

Notes to Quarterly Report 335

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

arise from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in the exchange
rates.

The Funds do not isolate that portion of the results of operations of the Funds that arises as a result of changes in exchange rates
from that portion that arises from changes in market prices of investments during the year. Such fluctuations are included with the
net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Funds do isolate the effects
of changes in foreign exchange rates from the fluctuations arising from changes in market prices for realized gain (or loss) on debt
obligations.

Derivatives
Certain Funds may invest in derivatives. Derivative securities are instruments or agreements whose value is derived from an
underlying security or index. They include options, futures, swaps and forwards. These instruments offer unique characteristics and
risks that facilitate the Funds’ investment strategies.

The Funds typically use derivatives in three ways: exposing cash to markets, hedging and return enhancement. In addition, certain
Funds may enter into foreign exchange contracts for trade settlement purposes. Certain Funds may pursue their strategy of being
fully invested by exposing cash to the performance of appropriate markets by purchasing securities and/or derivatives. This is
intended to cause the Funds to perform as though cash were actually invested in those markets.

Hedging may be used by certain Funds to limit or control risks, such as adverse movements in exchange rates and interest rates.
Return enhancement can be accomplished through the use of derivatives in a Fund, including using derivatives as a substitute for
holding physical securities, and using them to express various macro views (e.g., interest rate movements, currency movements,
and macro credit strategies). By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio
characteristics that assist them in meeting their investment objectives. Depending on how the derivatives are structured and
utilized, the risks associated with them may vary widely. These risks include, but are not limited to, market risk, liquidity risk,
leveraging risk, counterparty risk, basis risk, reinvestment risk, political risk, prepayment risk, extension risk, valuation risk and
credit risk.

Futures, certain options and cleared swaps are traded or cleared on an exchange or central exchange clearing house. Exchange-
traded or exchange-cleared transactions generally present less counterparty risk to a Fund. The exchange’s clearinghouse stands
between the Fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the clearing
house and the clearing member. Cleared swap contracts are subject to clearing house rules, including initial and variation margin
requirement, daily settlement of obligations and the clearing house guarantee of payments to the broker. There is, however, still
counterparty risk due to the insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While
clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a
shortfall in the amount of margin held by the broker for its clients. Collateral and margin requirements for exchange-traded or
exchange-cleared derivatives are established through regulation, as well as set by the broker or applicable clearinghouse. Margin
for exchange-traded and exchange-cleared transactions are detailed in the Statements of Assets and Liabilities as cash held at the
broker for futures contracts and cash held at the broker for swap contracts, respectively. Securities pledged by a Fund for exchange-
traded and exchange-cleared transactions are noted as collateral or margin requirements in the Schedule of Investments. Typically,
the Funds and counterparties are not permitted to sell, repledge or otherwise use collateral pledged by the other party unless
explicitly permitted by each respective governing agreement.

Foreign Currency Exchange Contracts
Certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“FX
contracts”). From time to time, certain Funds may enter into FX contracts to hedge certain foreign currency-denominated assets.
FX contracts are recorded at fair value. Certain risks may arise upon entering into these FX contracts from the potential inability
of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized gain on the FX
contracts, if any, that are disclosed in the Statements of Assets and Liabilities.

For the period ended July 31, 2016, the following Funds entered into foreign currency exchange contracts primarily for the strategies
listed below:

336 Notes to Quarterly Report

 

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Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

Funds Strategies
Russell International Developed Markets Fund Return enhancement, hedging, exposing cash to markets, and trade settlement
Russell Global Equity Fund Return enhancement, hedging, exposing cash to markets, and trade settlement
Russell Emerging Markets Fund Hedging, exposing cash to markets and trade settlement
Russell Tax-Managed International Equity Fund Return enhancement, hedging, exposing cash to markets, and trade settlement
Russell Global Opportunistic Credit Fund Return enhancement and hedging
Russell Strategic Bond Fund Return enhancement and hedging
Russell Investment Grade Bond Fund Return enhancement and hedging
Russell Short Duration Bond Fund Return enhancement and hedging
Russell Global Infrastructure Fund Exposing cash to markets and trade settlement
Russell Global Real Estate Securities Fund Exposing cash to markets and trade settlement
Russell Multi-Strategy Income Fund Return enhancement, hedging, and exposing cash to markets
Select International Equity Fund Return enhancement, hedging, exposing cash to markets, and trade settlement

 

As of July 31, 2016, the Funds had no cash collateral balances in connection with forward contracts purchased (sold).

The Funds’ foreign currency contract notional dollar values outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the purpose of this
disclosure, volume is measured by the amounts bought and sold in USD.

    Outstanding Contract Amounts Bought      
Quarter Ended January 31, 2016     April 30, 2016   July 31, 2016  
Russell International Developed Markets Fund $ 1,478,312,239 $ 974,888,868 $ 1,290,982,251
Russell Global Equity Fund 1,429,794,277 966,431,031 920,842,764
Russell Emerging Markets Fund 596,380,079 405,995,687 588,210,787
Russell Tax-Managed International Equity Fund   —   134,950,721 210,473,396
Russell Global Opportunistic Credit Fund 493,500,848 603,660,913 591,607,603
Russell Strategic Bond Fund 1,449,051,891 1,499,846,175 1,556,372,972
Russell Investment Grade Bond Fund 120,450,965 122,384,792 107,619,887
Russell Short Duration Bond Fund 45,432,962 54,190,302 78,320,250
Russell Global Infrastructure Fund 121,242,518 95,364,178 165,446,337
Russell Global Real Estate Securities Fund 90,626,463 87,172,946 117,542,709
Russell Multi-Strategy Income Fund 34,419,522 46,692,718 59,047,478
Select International Equity Fund 113,599,326 98,543,709 189,832,743
    Outstanding Contract Amounts Sold      
Quarter Ended January 31, 2016     April 30, 2016   July 31, 2016  
Russell International Developed Markets Fund $ 1,482,980,649 $ 964,503,562 $ 1,285,990,222
Russell Global Equity Fund 1,429,417,023 965,711,303 913,907,305
Russell Emerging Markets Fund 596,135,028 404,279,903 585,725,094
Russell Tax-Managed International Equity Fund   —   133,990,518 207,977,197
Russell Global Opportunistic Credit Fund 492,167,910 607,209,606 592,630,870
Russell Strategic Bond Fund 1,449,591,361 1,502,384,416 1,559,400,072
Russell Investment Grade Bond Fund 120,951,041 122,554,747 107,295,547
Russell Short Duration Bond Fund 45,559,122 54,143,878 78,127,178
Russell Global Infrastructure Fund 121,644,127 94,358,035 165,686,106
Russell Global Real Estate Securities Fund 90,625,333 86,399,032 117,605,885
Russell Multi-Strategy Income Fund 34,096,397 47,088,560 58,666,961
Select International Equity Fund 114,581,652 99,159,935 190,379,924

 

Options
Certain Funds may purchase and sell (write) call and put options on securities and securities indices. Such options are traded on
a national securities exchange or in an OTC market. The Funds may also purchase and sell (write) call and put options on foreign
currencies.

When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s
Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-

Notes to Quarterly Report 337

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

to-market to reflect the current fair value of the option written. The Fund receives a premium on the sale of a call option but gives
up the opportunity to profit from any increase in the value of the underlying instrument above the exercise price of the option, and
when the Fund writes a put option it is exposed to a decline in the price of the underlying instrument.

When a Fund sells an uncovered call option, it does not simultaneously have a long position in the underlying security. When a
Fund sells an uncovered put option, it does not simultaneously have a short position in the underlying security. Uncovered options
are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge.

Whether an option which the Fund has written expires on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the
option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security, and the proceeds from such sale are increased by the premium originally received. When a put option which
a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which a Fund
purchases upon exercise of the option.

The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to
market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price
of the underlying securities and interest rates.

Certain Funds may enter into a swaption (an option on a swap). In a swaption, in exchange for an option, the buyer gains the right
but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the contract
receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying interest rate swap.

For the period ended July 31, 2016, the Funds purchased or sold options primarily for the strategies listed below:

Funds Strategies
Russell U.S. Defensive Equity Fund Exposing cash to markets
Russell Strategic Bond Fund Return enhancement and hedging
Russell Investment Grade Bond Fund Return enhancement and hedging
Russell Multi-Strategy Income Fund Return enhancement and hedging
Russell Strategic Call Overwriting Fund Return enhancement and hedging

 

As of July 31, 2016, the Russell Strategic Call Overwriting Fund pledged securities valued at $36,785,038 as collateral in
connection with options.

The Funds’ options contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly activity of options contracts measured by notional in USD.

      Notional of Options Contracts Opened or Closed  
Funds   January 31, 2016     April 30, 2016   July 31, 2016  
Russell U.S. Defensive Equity Fund Opened $ 168,416,500 $ 218,154,500 $ 236,384,500
  Closed 165,990,500 187,903,500 235,015,000
Russell Global Opportunistic Credit Fund Opened 297,000,000   —   —  
  Closed   —   297,000,000 —  
Russell Strategic Bond Fund Opened 22,759,771 3,200,000 1,662,093,750
  Closed 198,896,000 38,875,000 1,520,952,514
Russell Multi-Strategy Income Fund Opened 40,669,525 70,671,916 193,968,519
  Closed 24,402,411 35,517,963 52,108,518
Russell Strategic Call Overwriting Fund Opened 661,735,350 1,013,149,000 1,047,822,750
  Closed 666,922,350 1,034,408,000 1,017,306,250

 

Futures Contracts
Certain Funds may invest in futures contracts (i.e., interest rate, foreign currency, index futures contracts) and commodity futures
contracts (Russell Commodity Strategies Fund only). The face or contract value of these instruments reflect the extent of the Funds’
exposure to off balance sheet risk. The primary risks associated with the use of futures contracts are an imperfect correlation
between the change in fair value of the securities held by the Funds and the prices of futures contracts, and the possibility of an
illiquid market. Upon entering into a futures contract, the Funds are required to deposit with a broker an amount, termed the initial
margin, which typically represents 5% to 10% of the purchase price indicated in the futures contract. Payments to and from the

338 Notes to Quarterly Report

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

broker, known as variation margin, are typically required to be made on a daily basis as the price of the futures contract fluctuates.
Changes in initial settlement value are accounted for as unrealized appreciation (depreciation) until the contracts are terminated,
at which time realized gains and losses are recognized.

For the period ended July 31, 2016, the following Funds entered into futures contracts primarily for the strategies listed below:

Funds Strategies
Russell U.S. Core Equity Fund Exposing cash to markets
Russell U.S. Defensive Equity Fund Exposing cash to markets
Russell U.S. Dynamic Equity Fund Exposing cash to markets
Russell U.S. Strategic Equity Fund Exposing cash to markets
Russell U.S. Large Cap Equity Fund Exposing cash to markets
Russell U.S. Mid Cap Equity Fund Exposing cash to markets
Russell U.S. Small Cap Equity Fund Exposing cash to markets
Russell International Developed Markets Fund Return enhancement, hedging and exposing cash to markets
Russell Global Equity Fund Return enhancement, hedging and exposing cash to markets
Russell Emerging Markets Fund Hedging and exposing cash to markets
Russell Tax-Managed U.S. Large Cap Fund Exposing cash to markets
Russell Tax-Managed U.S. Mid & Small Cap Fund Exposing cash to markets
Russell Tax-Managed International Equity Fund Return enhancement, hedging and exposing cash to markets
Russell Global Opportunistic Credit Fund Return enhancement, hedging and exposing cash to markets
Russell Strategic Bond Fund Return enhancement, hedging and exposing cash to markets
Russell Investment Grade Bond Fund Return enhancement, hedging and exposing cash to markets
Russell Short Duration Bond Fund Return enhancement, hedging and exposing cash to markets
Russell Commodity Strategies Fund Return enhancement
Russell Global Infrastructure Fund Exposing cash to markets
Russell Global Real Estate Securities Fund Exposing cash to markets
Russell Multi-Strategy Income Fund Return enhancement, hedging and exposing cash to markets
Russell Strategic Call Overwriting Fund Hedging and exposing cash to markets
Select U.S. Equity Fund Exposing cash to markets
Select International Equity Fund Return enhancement, hedging and exposing cash to markets

 

The Funds' futures contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly activity of futures contracts measured by notional in USD.

      Notional of Futures Contracts Opened or Closed  
Funds   January 31, 2016     April 30, 2016   July 31, 2016  
Russell U.S. Core Equity Fund Opened $ 138,790,082 $ 93,692,865 $ 53,076,701
  Closed 131,298,989 104,867,171 66,975,284
Russell U.S. Defensive Equity Fund Opened 149,518,508 100,233,512 38,941,109
  Closed 102,151,332 153,874,200 56,607,579
Russell U.S. Dynamic Equity Fund Opened 67,312,741 51,635,307 43,109,882
  Closed 67,669,804 61,123,572 46,111,996
Russell U.S. Strategic Equity Fund Opened 296,667,174 292,384,361 735,349,566
  Closed 330,054,254 347,845,752 745,208,123
Russell U.S. Large Cap Equity Fund Opened 56,134,059 37,440,827 31,084,789
  Closed 59,357,215 390,159,115 34,804,880
Russell U.S. Mid Cap Equity Fund Opened 21,924,238 21,260,579 16,834,941
  Closed 22,073,270 18,454,675 15,542,233
Russell U.S. Small Cap Equity Fund Opened 166,684,811 145,711,186 249,552,584
  Closed 168,489,193 151,749,480 278,529,304
Russell International Developed Markets Fund Opened 927,343,203 763,178,741 978,992,232
  Closed 804,171,166 822,697,628 944,232,380
Russell Global Equity Fund Opened 792,821,545 176,500,538 374,144,505
  Closed 343,893,520 171,003,337 243,296,890
Russell Emerging Markets Fund Opened 884,617,803 424,159,267 428,687,773
  Closed 665,195,523 575,195,520 406,080,322
Russell Tax-Managed U.S. Large Cap Fund Opened 231,891,602 168,737,139 128,661,210
  Closed 201,432,571 173,825,823 154,818,970
                  Notes to Quarterly Report 339  

 

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

      Notional of Futures Contracts Opened or Closed  
Russell Tax-Managed U.S. Mid & Small Cap Fund Opened 40,643,701 44,909,551 30,190,407
  Closed 32,611,849 49,169,375 40,739,990
Russell Tax-Managed International Equity Fund Opened 76,607,189 304,863,438 222,402,507
  Closed 45,590,572 229,252,213 222,871,376
Russell Global Opportunistic Credit Fund Opened 552,381,145 482,225,990 1,495,989,646
  Closed 394,768,234 519,278,982 851,787,207
Russell Strategic Bond Fund Opened 2,451,430,181 2,763,472,209 4,816,644,194
  Closed 2,287,420,551 2,924,599,188 3,229,196,968
Russell Investment Grade Bond Fund Opened 223,693,157 298,061,711 690,346,774
  Closed 172,181,191 315,544,302 501,766,816
Russell Short Duration Bond Fund Opened 331,901,288 176,500,538 374,144,505
  Closed 343,893,520 171,003,337 243,296,890
Russell Commodity Strategies Fund Opened 11,700,609 3,429,374 15,602,039
  Closed 5,399,159 5,317,142 15,831,370
Russell Global Infrastructure Fund Opened 153,295,054 130,011,597 178,191,802
  Closed 144,526,149 130,670,131 185,226,408
Russell Global Real Estate Securities Fund Opened 111,574,608 110,888,890 144,229,607
  Closed 122,592,250 91,949,547 155,036,308
Russell Multi-Strategy Income Fund Opened 95,849,672 100,693,427 292,538,473
  Closed 85,929,336 90,955,495 162,994,062
Russell Strategic Call Overwriting Fund Opened 9,048,437 13,183,447 8,821,566
  Closed 1,235,778 839,851 9,202,808
Select U.S. Equity Fund Opened 54,640,636 84,379,972 45,527,626
  Closed 53,262,649 102,624,639 43,361,145
Select International Equity Fund Opened 140,564,763 113,020,277 123,841,553
  Closed 78,869,660 141,777,166 117,715,763

 

As of July 31, 2016, the Funds has cash collateral balances in connection with future contracts purchased/sold as follows:  
  Cash Collateral for Futures     Due to Broker  
Russell U.S. Core Equity Fund $ 271 $ —  
Russell U.S. Defensive Equity Fund $ 583,042 $ 1,500,000
Russell U.S. Dynamic Equity Fund $ 705,417 $ —  
Russell U.S. Large Cap Equity Fund $ 1,019,000 $ —  
Russell U.S. Mid Cap Equity Fund $ 642,000 $ —  
Russell U.S. Small Cap Equity Fund $ 2,300,062 $ —  
Russell International Developed Markets Fund $ 4,600,000 $ —  
Russell Global Equity Fund $ 1,600,000 $ —  
Russell Emerging Markets Fund $ 2,100,000 $ 6,350
Russell Tax-Managed U.S. Large Cap Fund $ 1,898 $ —  
Russell Tax-Managed U.S. Mid & Small Cap Fund $ 945,007 $ —  
Russell Tax-Managed International Equity Fund $ 9,300,000 $ —  
Russell Global Opportunistic Credit Fund $ 11,100,000 $ —  
Russell Strategic Bond Fund $ 18,900,000 $ —  
Russell Investment Grade Bond Fund $ 4,286,300 $ —  
Russell Short Duration Bond Fund $ 1,849,000 $ —  
Russell Global Infrastructure Fund $ 1,891,000 $ —  
Russell Global Real Estate Securities Fund $ 2,600,000 $ —  
Russell Multi-Strategy Income Fund $ 7,700,000 $ —  
Russell Strategic Call Overwriting Fund $ 1,350,000 $ —  
Select U.S. Equity Fund $ 1,100,000 $ —  

 

340 Notes to Quarterly Report

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

  Cash Collateral for Futures     Due to Broker
Select International Equity Fund $ 3,000,000 $ —

 

Swap Agreements
Certain Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether they are
hedging their assets or their liabilities, and will usually enter into swaps on a net basis (i.e., the two payment streams are netted
out, with the Funds receiving or paying only the net amount of the two payments). When a Fund engages in a swap, it exchanges
its obligations to pay or rights to receive payments for the obligations to pay or rights to receive payments of another party (i.e., an
exchange of floating rate payments for fixed rate payments).

Certain Funds may enter into several different types of swap agreements including credit default, interest rate, commodity-linked
(Russell Commodity Strategies Fund only), total return (equity and/or index) and currency swaps. Credit default swaps are a
counterparty agreement which allows the transfer of third party credit risk (the possibility that an issuer will default on its obligation
by failing to pay principal or interest in a timely manner) from one party to another. The lender faces the credit risk from a third
party and the counterparty in the swap agrees to insure this risk in exchange for regular periodic payments. Interest rate swaps are a
counterparty agreement, can be customized to meet each party’s needs, and involve the exchange of a fixed or variable payment per
period for a payment that is not fixed. Equity swaps are a counterparty agreement where two parties exchange two sets of cash flows
on predetermined dates for an agreed upon amount of time. The cash flows will typically be an equity index value swapped with
a floating rate such as LIBOR plus or minus a pre-defined spread. Index swap agreements are a counterparty agreement intended
to expose cash to markets or to effect investment transactions consistent with those Funds’ investment objectives and strategies.
Currency swaps are a counterparty agreement where two parties exchange specified amounts of different currencies which are
followed by each paying the other a series of interest payments that are based on the principal cash flow. At maturity the principal
amounts are returned.

The Funds generally expect to enter into these transactions primarily to preserve a return or spread on a particular investment or
portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date, or for
return enhancement. Under most swap agreements entered into by a Fund, the parties' obligations are determined on a "net basis".
The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a
daily basis and an amount of cash or liquid assets having an aggregate NAV at least equal to the accrued excess will be segregated.
To the extent that the Funds enter into swaps on other than a net basis, the amount maintained in a segregated account will be the
full amount of the Funds’ obligations, if any, with respect to such swaps, accrued on a daily basis. If there is a default by the other
party to such a transaction, the Funds will have contractual remedies pursuant to the agreement related to the transaction.

A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes
bankrupt.

As of July 31, 2016, the Funds has cash collateral balances in connection with swap contracts purchased/sold as follows:

  Cash Collateral for Swaps     Due to Broker  
Russell Emerging Markets Fund $ 2,200,000 $ —  
Russell Global Opportunistic Credit Fund $ 15,057,786 $ 135,000
Russell Strategic Bond Fund $ 6,448,772 $ 3,848,666
Russell Investment Grade Bond Fund $ 78,438 $ —  
Russell Commodity Strategies Fund $ 56,296,108 $ —  
Russell Multi-Strategy Income Fund $ 5,400,000 $ —  

 

Credit Default Swaps
Certain Funds may enter into credit default swaps. A credit default swap can refer to corporate issues, asset-backed securities or an
index of assets, each known as the reference entity or underlying asset. Funds may act as either the buyer or the seller of a credit
default swap involving one party making a stream of payments to another party in exchange for the right to receive a specified return
in the event of a default or other credit event. Depending upon the terms of the contract, the credit default swap may be closed via
physical settlement. However, due to the possible or potential instability in the market, there is a risk that the Funds may be unable
to deliver the underlying debt security to the other party to the agreement. Additionally, the Funds may not receive the expected
amount under the swap agreement if the other party to the agreement defaults or becomes bankrupt. In an unhedged credit default
swap, Funds enter into a credit default swap without owning the underlying asset or debt issued by the reference entity. Credit
default swaps allow Funds to acquire or reduce credit exposure to a particular issuer, asset or basket of assets.

Notes to Quarterly Report 341

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

As the seller of protection in a credit default swap, a Fund would be required to pay the par or other agreed-upon value (or otherwise
perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified
credit event) and the counterparty would be required to surrender the reference debt obligation. In return, the Fund would receive
from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no
credit event occurs, the Fund would keep the stream of payments and would have no payment obligations. As a seller of protection,
the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, that Fund would be subject to
investment exposure on the notional amount of the swap.

Certain Funds may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities
held their portfolios or to take a short position in a debt security, in which case the Fund would function as the counterparty
referenced in the preceding paragraph.

If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of
the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer
of protection’s right to choose the deliverable obligation with the lowest value following a credit event). Certain Funds may use
credit default swaps to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where Funds own or have
exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by the
credit default swap’s spread) of a particular issuer’s default.

Deliverable obligations for credit default swaps on asset-backed securities in most instances are limited to the specific referenced
obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown
or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These
reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap
agreement generally will be adjusted by corresponding amounts. Certain Funds may use credit default swaps on asset-backed
securities to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation or to take
an active long or short position with respect to the likelihood of a particular referenced obligation’s default (or another defined credit
event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for
the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of
the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be
representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a
poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the
indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging
markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized
terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and
if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes
periodically, usually every six months, and, for most indices, each name has an equal weight in the index. Traders may use credit
default swaps on indices to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on
corporate issues as of period-end are disclosed in the Schedules of Investments and generally serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit
derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and
may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-
backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of
the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk
of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future
payments (undiscounted) that Funds as a seller of protection could be required to make under a credit default swap agreement
equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of July 31,
2016, for which a Fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would be
partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for
the same referenced entity or entities.

Credit default swaps could result in losses if the Funds do not correctly evaluate the creditworthiness of the company or companies
on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Funds had invested
in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject
to illiquidity and counterparty risk. A Fund will generally incur a greater degree of risk when it sells a credit default swap than

342 Notes to Quarterly Report

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

when it purchases a credit default swap. As a buyer of a credit default swap, a Fund may lose its investment and recover nothing
should a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event
were to occur, the value of any deliverable obligation received by a Fund, coupled with the upfront or periodic payments previously
received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.

If the creditworthiness of a Fund’s swap counterparty declines, the risk that the counterparty may not perform could increase,
potentially resulting in a loss to the Fund. To limit the counterparty risk involved in swap agreements, the Funds will only enter
into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that
the Funds will be able to do so, the Funds may be able to reduce or eliminate their exposure under a swap agreement either by
assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party.
The Funds may have limited ability to eliminate their exposure under a credit default swap if the credit quality of the reference
entity or underlying asset has declined.

For the period ended July 31, 2016, the Funds entered into credit default swaps primarily for the strategies listed below:

Funds Strategies
Russell Global Opportunistic Credit Fund Return enhancement and exposing cash to markets
Russell Strategic Bond Fund Return enhancement, hedging, and exposing cash to markets
Russell Investment Grade Bond Fund Return enhancement, hedging, and exposing cash to markets
Russell Short Duration Bond Fund Return enhancement and hedging
Russell Multi-Strategy Income Fund Return enhancement and hedging

 

The Funds' period end credit default swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to
meet strategic requirements. The following table illustrates the quarterly volume of credit default swap contracts. For the purpose
of this disclosure, the volume is measured by the base notional amounts outstanding at each quarter end.

    Credit Default Swap Notional Amounts Outstanding  
Quarter Ended January 31, 2016     April 30, 2016   July 31, 2016  
Russell Global Opportunistic Credit Fund $ 149,045,810 $ 118,046,059 $ 367,788,032
Russell Strategic Bond Fund 257,856,936 31,216,040 14,000,000
Russell Investment Grade Bond Fund 23,916,304 12,000,000 —  
Russell Short Duration Bond Fund 5,650,000   —   —  
Russell Multi-Strategy Income Fund 9,600,000 17,200,000 98,600,000

 

Interest Rate Swaps
The use of interest rate swaps is a highly specialized activity which involves investment techniques and risks different from those
associated with ordinary portfolio securities transactions. If RIM or a money manager using this technique is incorrect in its forecast
of fair values, interest rates and other applicable factors, the investment performance of a Fund might diminish compared to what
it would have been if this investment technique were not used.

Interest rate swaps do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss
with respect to interest rate swaps is limited to the net amount of interest payments that a Fund is contractually obligated to make.
Interest rate swaps are traded on exchanges and are subject to central clearing. If the clearing house or futures commission merchant
defaults, a Funds' risk of loss consists of the net amount of interest payments that a Fund is contractually entitled to receive. The
counterparty risk for cleared derivatives is generally lower than for uncleared derivatives. However, clearing may subject a Fund to
increased costs or margin requirements.

For the period ended July 31, 2016, the Funds entered into interest rate swaps primarily for the strategies listed below:
 
Funds Strategies
Russell Strategic Bond Fund Return enhancement and hedging
Russell Investment Grade Bond Fund Return enhancement and hedging
Russell Tax Exempt High Yield Bond Fund Return enhancement and hedging

 

The Funds’ interest rate swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following table illustrates the quarterly volume of interest rate swap contracts. For the purpose of this
disclosure, the volume is measured by the base notional amounts outstanding at each quarter end.

Notes to Quarterly Report 343

 

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Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

    Interest Rate Swap Notional Amounts Outstanding  
Quarter Ended January 31, 2016     April 30, 2016   July 31, 2016  
Russell Strategic Bond Fund $ 116,182,080 $ 145,934,764 $ 78,018,744
Russell Investment Grade Bond Fund 3,840,000 2,450,000 2,450,000
Russell Tax Exempt High Yield Bond Fund 7,300,000 2,800,000 2,200,000

 

Total Return Swaps
Certain Funds may enter into index swap agreements to expose cash to markets or to effect investment transactions. Index swap
agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more
than one year. In a standard index swap transaction, the two parties agree to exchange the returns (or differentials in rates of return)
earned or realized on particular investments or instruments.

The returns to be exchanged between the parties are calculated with respect to a “notional amount” (i.e., a specified dollar amount
that is hypothetically invested in a “basket” of securities representing a particular index).

For the period ended July 31, 2016, the Funds entered into total return swaps primarily for the strategies listed below:

Funds Strategies
Russell Emerging Markets Fund Exposing cash to markets
Russell Strategic Bond Fund Exposing cash to markets
Russell Investment Grade Bond Fund Exposing cash to markets
Russell Commodity Strategies Fund Return enhancement

 

The Funds' period end total return swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to
meet strategic requirements. The following table illustrates the quarterly volume of total return swap contracts. For the purpose of
this disclosure, volume is measured by base notional amounts outstanding at each quarter end.

    Total Return Swap Notional Amounts Outstanding  
Quarter Ended January 31, 2016     April 30, 2016   July 31, 2016  
Russell Emerging Markets Fund $ 50,729,750 $ 29,223,320 $ 26,277,000
Russell Strategic Bond Fund 508,962,316 461,515,940 417,400,410
Russell Investment Grade Bond Fund 64,663,951 36,064,070 24,083,943
Russell Commodity Strategies Fund 621,677,547 666,733,158 657,783,005

 

Currency Swaps
Certain Funds may enter into currency swap agreements to enhance returns or for hedging purposes. Currency swap agreements are
agreements where two parties exchange specified amounts of different currencies which are followed by paying the other a series of
interest payments that are based on the principal cash flow. At maturity, the principal amounts are exchanged.

For the period ended July 31, 2016, there were no currency swaps.

Commodity-Linked Instruments
The Russell Commodity Strategies Fund invests in commodity-linked derivative instruments, such as swap agreements and
futures. At least part of their value is derived from the value of an underlying commodity index, commodity futures or options
contracts index, or other readily measurable economic variable. The prices of commodity-linked derivative instruments may move
in different directions than investments in traditional equity and debt securities. As an example, during periods of rising inflation,
debt securities have historically tended to decline in value due to the general increase in prevailing interest rates. Conversely,
during those same periods of rising inflation, historically the prices of certain commodities, such as oil and metals, have tended to
increase. Of course, there cannot be any guarantee that such commodity-linked derivative instruments will perform in that manner
in the future, and at certain times the price movements of commodity-linked derivative investments have been parallel to those of
debt and equity securities.

The Russell Commodity Strategies Fund may invest in commodity-linked notes. Commodity linked notes pay a return linked to the
performance of a commodity over a defined period. On the maturity date, the note pays the initial principal amount plus return, if
any, based on the percentage change in the underlying commodity.

344 Notes to Quarterly Report

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

Master Agreements
Certain Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”)
with counterparties that govern transactions in OTC derivative and foreign exchange contracts entered into by the Funds and
those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements,
collateral and events of default or termination. Events of termination and default include conditions that may entitle either party
to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement.
Any election to terminate early could be material to the financial statements. Since different types of forward and OTC financial
derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty
organization, each type of transaction may be covered by a different ISDA Master Agreement, resulting in the need for multiple
agreements with a single counterparty. As the ISDA Master Agreements are specific to unique operations of different asset types,
they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions governed
under a single agreement with a counterparty.

Master Repurchase Agreements (“Master Repo Agreements”) govern transactions between a Fund and select counterparties.
The Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and
maintenance of collateral for repurchase and reverse repurchase agreements.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors
surrounding the settlement of certain forward settling transactions, such as delayed delivery by and between a Fund and select
counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment
and transfer, events of default, termination, and maintenance of collateral.

Loan Agreements
Certain Funds may invest in direct debt instruments, which are interests in amounts owed by corporate, governmental, or other
borrowers to lenders or lending syndicates. The Funds’ investments in loans may be in the form of participations in loans or
assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the
“agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When
investing in a loan participation, the Funds have the right to receive payments of principal, interest and any fees to which they
are entitled only from the agent selling the loan agreement and only upon receipt by the agent of payments from the borrower. The
Funds generally have no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Funds
may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement. When the Funds purchase
assignments from agents they acquire direct rights against the borrower on the loan. As of July 31, 2016, there were no unfunded
loan commitments held by the Funds.

Local Access Products
Certain Funds may invest in local access products, also known as certificates of participation, participation notes or participation
interest notes. Local access products are issued by banks or broker-dealers and are designed to replicate the performance of foreign
companies or foreign securities markets and can be used by the Fund as an alternative means to access the securities market of a
frontier emerging market country. The performance results of local access products will not replicate exactly the performance of
the foreign companies or foreign securities markets that they seek to replicate due to transaction and other expenses. Investments
in local access products involve certain risks in addition to those associated with a direct investment in the underlying foreign
companies or foreign securities markets whose return they seek to replicate. There can be no assurance that there will be a trading
market or that the trading price of local access products will equal the underlying value of the foreign company or foreign securities
market that it seeks to replicate. The Funds rely on the creditworthiness of the counterparty issuing the local access products and
have no rights against the issuer of the underlying security. The Funds minimize this risk by entering into agreements only with
counterparties that RIM deems creditworthy. Due to liquidity and transfer restrictions, the secondary markets on which the local
access products are traded may be less liquid than the markets for other securities, or may be completely illiquid.

Credit-Linked Notes
The Russell Global Opportunistic Credit Fund may invest in credit linked notes. Credit linked notes are obligations between two or
more parties where the payment of principal and/or interest is based on the performance of some obligation, basket of obligations,
index or economic indicator (a “reference instrument”). In addition to the credit risk associated with the reference instrument and
interest rate risk, the buyer and seller of a credit linked note or similar structured investment are subject to counterparty risk.

Short Sales
The Russell U.S. Defensive Equity, Russell U.S. Dynamic Equity and Russell U.S. Strategic Equity Funds may enter into short
sale transactions. In a short sale, the seller sells a security that it does not own, typically a security borrowed from a broker or

Notes to Quarterly Report 345

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

dealer. Because the seller remains liable to return the underlying security that it borrowed from the broker or dealer, the seller
must purchase the security prior to the date on which delivery to the broker or dealer is required. The Funds will incur a loss as a
result of the short sale if the price of the security increases between the date of the short sale and the date on which the Funds must
return the borrowed security. The Funds will realize a gain if the security declines in price between those dates. Short sales expose
the Funds to the risk of liability for the fair value of the security that is sold (the amount of which increases as the fair value of the
underlying security increases), in addition to the costs associated with establishing, maintaining and closing out the short position.

Although the Funds’ potential for gain as a result of a short sale is limited to the price at which it sold the security short less the
cost of borrowing the security, its potential for loss is theoretically unlimited because there is no limit to the cost of replacing the
borrowed security. When the Funds make a short sale, the Funds may use all or a portion of the cash proceeds of short sales to
purchase other securities or for any other permissible Fund purpose. To the extent necessary to meet collateral requirements, the
Funds are required to pledge assets in a segregated account maintained by the Funds’ custodian for the benefit of the broker. The
Funds also may use securities they own to meet any such collateral obligations. Until the Funds replace a borrowed security in
connection with a short sale, the Funds will: (a) maintain daily a segregated account, containing liquid assets at such a level that
the amount deposited in the segregated account will equal the current requirement under Regulation T promulgated by the Board
of Governors of the Federal Reserve System under the authority of Sections 7 and 8 of the Securities Exchange Act of 1934, as
amended; or (b) otherwise cover its short position in accordance with positions taken by the staff of the Securities and Exchange
Commission (e.g., taking an offsetting long position in the security sold short). As of July 31, 2016, the Russell U.S. Defensive
Equity Fund held $85,857,772, the Russell U.S. Dynamic Equity Fund held $24,452,588, and the Russell U.S. Strategic Equity
Fund held $47,657,812 as collateral for short sales.

Emerging Markets Securities
Certain Funds may invest in emerging markets securities. Investing in emerging markets securities can pose some risks different
from, and greater than, risks of investing in U.S. or developed markets securities. These risks include: a risk of loss due to
exposure to economic structures that are generally less diverse and mature, and to political systems which may have less stability,
than those of more developed countries; smaller market capitalization of securities markets, which may suffer periods of relative
illiquidity; significant price volatility; restrictions on foreign investment; and possible difficulties in the repatriation of investment
income and capital. In addition, foreign investors may be required to register the proceeds of sales and future economic or political
crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization, or creation of
government monopolies. The currencies of emerging market countries may experience significant declines against the U.S. dollar,
and devaluation may occur subsequent to investments in these currencies by the Funds. Emerging market securities may be
subject to currency transfer restrictions and may experience delays and disruptions in settlement procedures. Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of
certain emerging market countries.

Emerging Markets Debt
Certain Funds may invest in emerging markets debt. A Fund's emerging markets debt securities may include obligations of
governments and corporations. As with any fixed income securities, emerging markets debt securities are subject to the risk of
being downgraded in credit rating due to the risk of default. In the event of a default on any investments in foreign debt obligations,
it may be more difficult for a Fund to obtain or to enforce a judgment against the issuers of such securities. With respect to debt
issued by emerging market governments, such issuers may be unwilling to pay interest and repay principal when due, either due
to an inability to pay or submission to political pressure not to pay, and as a result may default, declare temporary suspensions of
interest payments or require that the conditions for payment be renegotiated.

Repurchase Agreements
Certain Funds may enter into repurchase agreements. A repurchase agreement is an agreement under which a Fund acquires a
fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the seller
at an agreed upon price and date (normally within a few days or weeks). The resale price reflects an agreed upon interest rate
effective for the period the security is held by a Fund and is unrelated to the interest rate on the security. The securities acquired
by a Fund constitute collateral for the repurchase obligation. In these transactions, the securities acquired by a Fund (including
accrued interest earned thereon) must have a total value in excess of the value of the repurchase agreement and must be held by the
custodian bank until repurchased. A Fund will not invest more than 15% of its net assets (taken at current fair value) in repurchase
agreements maturing in more than seven days.

Mortgage-Related and Other Asset-Backed Securities

346 Notes to Quarterly Report

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

Certain Funds may invest in mortgage or other asset-backed securities (“ABS”). These securities may include mortgage instruments
issued by U.S. government agencies (“agency mortgages”) or those issued by private entities (“non-agency mortgages”). Specific
types of instruments may include reverse mortgages, mortgage pass-through securities, collateralized mortgage obligations
(“CMO”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and
other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real
property. The value of a Fund’s mortgage-backed securities (“MBS”) may be affected by, among other things, changes or perceived
changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgage, or the
quality of the underlying assets. The mortgages underlying the securities may default or decline in quality or value. Through its
investments in MBS, a Fund has exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage
and credit markets generally. Underlying collateral related to subprime, Alt-A and non-conforming mortgage loans has become
increasingly susceptible to defaults and declines in quality or value, especially in a declining residential real estate market. In
addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.

Mortgage-Backed Securities
MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying
the securities. In practice, however, unscheduled or early payments of principal and interest on the underlying mortgages may make
the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of
a Fund’s portfolio at the time resulting in reinvestment risk.

Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS,
making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.

MBS may have less potential for capital appreciation than comparable fixed income securities due to the likelihood of increased
prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are paid
off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a
price above par. In such an environment, this risk limits the potential price appreciation of these securities.

Agency Mortgage-Backed Securities
Certain MBS may be issued or guaranteed by the U.S. government or a government sponsored entity, such as Fannie Mae (the Federal
National Mortgage Association) or Freddie Mac (the Federal Home Loan Mortgage Corporation). Although these instruments may
be guaranteed by the U.S. government or a government sponsored entity, many such MBS are not backed by the full faith and credit
of the United States and are still exposed to the risk of non-payment.

Privately Issued Mortgage-Backed Securities
MBS held by a Fund may be issued by private issuers including commercial banks, savings associations, mortgage companies,
investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles or SPVs) and
other entities that acquire and package mortgage loans for resale as MBS. These privately issued non-agency MBS may offer higher
yields than those issued by government agencies, but also may be subject to greater price changes than governmental issues.
Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments
on their loans. Alt-A loans refer to loans extended to borrowers who have incomplete documentation of income, assets, or other
variables that are important to the credit underwriting processes. Non-conforming mortgages are loans that do not meet the standards
that allow purchase by government-sponsored enterprises. MBS with exposure to subprime loans, Alt-A loans or nonconforming
loans have had in many cases higher default rates than those loans that meet government underwriting requirements. The risk of
non-payment is greater for MBS that are backed by mortgage pools that contain subprime, Alt-A and non-conforming loans, but a
level of risk exists for all loans.

Unlike agency MBS issued or guaranteed by the U.S. government or a government-sponsored entity (e.g., Fannie Mae and Freddie
Mac), MBS issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit
enhancements provided by external entities such as banks or financial institutions or achieved through the structuring of the
transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and
subordinated securities (e.g., the issuance of securities by an SPV in multiple classes or tranches, with one or more classes being
senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying
mortgage loans are borne first by the holders of the subordinated class); creation of reserve funds (in which case cash or investments,
sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and
overcollateralization (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds
that required to make payment on the securities and pay any servicing or other fees). However, there can be no guarantee that credit
enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans. In addition, MBS
that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable

Notes to Quarterly Report 347

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

to those MBS that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private
MBS may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or
government-sponsored MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower
characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured
housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater
extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans.

Privately issued MBS are not traded on an exchange and there may be a limited market for the securities, especially when there is a
perceived weakness in the mortgage and real estate market sectors. Without an active trading market, MBS held in a Fund's portfolio
may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

Asset-Backed Securities
ABS may include MBS, loans, receivables or other assets. The value of the Funds’ ABS may be affected by, among other things,
actual or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the
receivables, the market’s assessment of the quality of underlying assets or actual or perceived changes in the credit worthiness of
the individual borrowers, the originator, the servicing agent or the financial institution providing the credit support.

Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities.
Rising or high interest rates tend to extend the duration of ABS, making them more volatile and more sensitive to changes in interest
rates. The underlying assets are sometimes subject to prepayments which can shorten the security’s weighted average life and may
lower its return. Defaults on loans underlying ABS have become an increasing risk for ABS that are secured by home equity loans
related to sub-prime, Alt-A or non-conforming mortgage loans, especially in a declining residential real estate market.

ABS (other than MBS) present certain risks that are not presented by MBS. Primarily, these securities may not have the benefit
of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the
protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts
owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may
not, in some cases, be available to support payments on these securities. ABS are often backed by a pool of assets representing the
obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the
securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against
losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances,
generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in a
timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in the
pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from third
parties, through various means of structuring the transaction or through a combination of such approaches. The Funds will not
pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on
historical information respecting the level of credit risk associated with the underlying assets.

Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment
in such a security. The availability of ABS may be affected by legislative or regulatory developments. It is possible that such
developments may require the Funds to dispose of any then-existing holdings of such securities.

Forward Commitments
Certain Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time. The price
of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is
negotiated The Funds may dispose of a forward commitment transaction prior to settlement if it is appropriate to do so and may
realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt obligations
of the Funds in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be earmarked on the
Fund's records at the trade date and until the transaction is settled. A forward commitment transaction involves a risk of loss if the
value of the security to be purchased declines prior to the settlement date or the other party to the transaction fails to complete the
transaction.

Certain Funds may invest in to-be-announced ("TBA") mortgage-backed securities. A TBA security is a forward mortgage-backed
securities trade in which a seller agrees to issue a TBA mortgage-backed security at a future date. The securities are purchased
and sold on a forward commitment basis with an approximate principal amount and maturity date. The actual principal amount and
maturity date will be determined upon settlement when the specific mortgage pools are assigned. These securities are within the
parameters of industry “good delivery” standards.

As of July 31, 2016, the Funds had cash collateral balances in connection with TBAs as follows:

348 Notes to Quarterly Report

 

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Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

    Cash Collateral for TBAs     Due to Broker  
Russell Strategic Bond Fund $ 210,000 $ 350,000

 

Inflation-Indexed Bonds
The fixed income funds may invest in inflation-indexed securities, which are typically bonds or notes designed to provide a return
higher than the rate of inflation (based on a designated index) if held to maturity. A common type of inflation-indexed security is a
U.S. Treasury Inflation-Protected Security (“TIPS”). The principal of a TIPS increases with inflation and decreases with deflation,
as measured by the Consumer Price Index. When a TIPS matures, the adjusted principal or original principal is paid, whichever is
greater. TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest
payments rise with inflation and fall with deflation.

Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general
indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.

Market, Credit and Counterparty Risk
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential
loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to
credit risk, the Funds may also be exposed to counterparty risk or risk that an institution or other entity with which the Funds have
unsettled or open transactions will default. The potential loss could exceed the value of the relevant assets recorded in the financial
statements (the “Assets”). The Assets consist principally of cash due from counterparties and investments. The extent of the Funds'
exposure to market, credit and counterparty risks with respect to the Assets approximates their carrying value as recorded in the
Funds' Statements of Assets and Liabilities.

Global economies and financial markets are becoming increasingly interconnected and political and economic conditions (including
recent instability and volatility) and events (including natural disasters) in one country, region or financial market may adversely
impact issuers in a different country, region or financial market. As a result, issuers of securities held by a Fund may experience
significant declines in the value of their assets and even cease operations. Such conditions and/or events may not have the same
impact on all types of securities and may expose a Fund to greater market and liquidity risk and potential difficulty in valuing
portfolio instruments held. This could cause a Fund to underperform other types of investments.

3. Investment in Russell Cayman Commodity Strategies Fund Ltd.
The Russell Cayman Commodity Strategies Fund Ltd. (the “Subsidiary”) is a Cayman Island exempted company and wholly owned
subsidiary of the Russell Commodity Strategies Fund. The Subsidiary acts as an investment vehicle for the Fund in order to effect
certain investments on behalf of the Fund. The Fund is the sole shareholder of the Subsidiary and it is intended that the Fund will
remain the sole shareholder and, as a result, will continue to control the Subsidiary. As of July 31, 2016, net assets of the Russell
Commodity Strategies Fund were $684,331,979 of which $115,883,766 or approximately 17%, represents the Fund’s ownership of
the shares of its Subsidiary.

The Russell Commodity Strategies Fund may invest up to 25% of its total assets in the Subsidiary, which may invest without limitation
in commodity-linked derivative instruments, such as swaps and futures that provide exposure to the performance of commodities
markets. The Subsidiary may also invest in fixed income securities. The financial statements for the Russell Commodity Strategies
Fund have been consolidated and include the accounts of both the Fund and the Subsidiary. All inter-company transactions and
balances have been eliminated upon consolidation.

4. Investment Transactions

Securities Lending
The Investment Company has a securities lending program whereby each Fund can loan securities with a value up to 33 1/3% of
each Fund’s total assets. The maturity associated with these securities is considered continuous. The Fund receives cash (U.S.
currency), U.S. Government or U.S. Government Agency obligations as collateral against the loaned securities. As of July 31, 2016,
to the extent that a loan was collateralized by cash, such collateral was invested by the securities lending agent, Brown Brothers
Harriman & Co. (“BBH”), in the Russell U.S. Cash Collateral Fund, an unregistered fund advised by RIM. The collateral received
is recorded on a lending Fund’s Statement of Assets and Liabilities along with the related obligation to return the collateral.

Income generated from the investment of cash collateral, less negotiated rebate fees paid to participating brokers, is divided between
the Fund and BBH and is recorded as income for the Fund. To the extent that a loan is secured by non-cash collateral, brokers pay

Notes to Quarterly Report 349

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

the Fund negotiated lenders’ fees, which are divided between the Fund and BBH and are recorded as securities lending income
for the Fund. All collateral received will be in an amount at least equal to 102% (for loans of U.S. securities) or 105% (for loans of
non-U.S. securities) of the fair value of the loaned securities at the inception of each loan. The fair value of the loaned securities is
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund the next day. Should
the borrower of the securities fail financially, there is a risk of delay in recovery of the securities or loss of rights in the collateral.

5. Related Party Transactions, Fees and Expenses

Adviser and Administrator
RIM provides or oversees the provision of all investment advisory and portfolio management services for the Funds, including
developing the investment program for each Fund and managing each Fund's overall exposures. From its advisory fees received
from the Funds, RIM, as agent for RIC, pays all fees to the money managers for their investment selection services. Each money
manager has agreed that it will look only to RIM for the payment of the money manager’s fee, after RIC has paid RIM. Fees paid to
the money managers are not affected by any voluntary or statutory expense limitations.

RIFUS is the Funds' administrator and transfer agent. RIFUS, in its capacity as the Funds' administrator, provides or oversees
the provision of all administrative services for the Funds. RIFUS, in its capacity as the Funds' transfer agent, is responsible for
maintaining the Funds' shareholder records and carrying out shareholder transactions. RIFUS is a wholly-owned subsidiary of RIM.
As of July 31, 2016, RIM is an indirect, wholly-owned subsidiary of Emerald Acquisition Limited, a company incorporated under
the laws of England and Wales.

The Funds are permitted to invest their cash (i.e., cash awaiting investment or cash held to meet redemption requests or to pay
expenses) in the Russell U.S. Cash Management Fund, an unregistered fund advised by RIM. As of July 31, 2016, the Funds had
invested $2,741,356,220 in the Russell U.S. Cash Management Fund. In addition, all or a portion of the collateral received from
the Investment Company’s securities lending program in the amount of $378,966,227 is invested in the Russell U.S. Cash Collateral
Fund, an unregistered fund advised by RIM.

6. Federal Income Taxes
At July 31, 2016, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

    Russell U.S. Core     Russell U.S. Defensive   Russell U.S. Dynamic   Russell U.S. Strategic     Russell U.S. Large  
    Equity Fund   Equity Fund     Equity Fund   Equity Fund     Cap Equity Fund  
Cost of Investments $ 613,349,136 $ 867,485,122 $   485,382,747 $ 2,632,761,503 $   316,398,853
Unrealized Appreciation $ 132,228,329 $ 118,012,004 $   54,325,116 $ 408,985,582 $   58,284,712
Unrealized Depreciation (12,850,905) (18,058,201)   (14,218,766) (55,432,366)   (4,180,472 )
Net Unrealized Appreciation (Depreciation) $ 119,377,424 $ 99,953,803 $   40,106,350 $ 353,553,216 $   54,104,240
            Russell International                
  Russell U.S. Mid Cap     Russell U.S. Small        Developed Markets   Russell Global Equity     Russell Emerging  
    Equity Fund   Cap Equity Fund       Fund     Fund     Markets Fund  
Cost of Investments $ 174,614,720 $ 1,737,004,749 $   2,617,296,521 $ 2,120,442,271 $ 2,256,614,855
Unrealized Appreciation $ 14,924,289 $ 229,890,605 $   646,010,693 $ 466,122,160 $   12,672,315
Unrealized Depreciation (3,872,031) (44,659,475) (727,600,101) (91,497,414)   (8,585,154 )
Net Unrealized Appreciation (Depreciation) $ 11,052,258 $ 185,231,130 $   (81,589,408) $ 374,624,746 $   4,087,161
          Russell Tax-Managed   Russell Tax-Managed   Russell Global          
  Russell Tax-Managed     U.S. Mid & Small Cap       International Equity     Opportunistic Credit     Russell Strategic Bond  
  U.S. Large Cap Fund     Fund       Fund     Fund       Fund  
Cost of Investments $ 1,396,901,599 $ 326,825,507 $   530,694,072 $ 1,960,418,352 $ 5,907,104,465
Unrealized Appreciation $ 433,530,399 $ 111,227,458 $   55,122,689 $ 64,919,910 $ 135,289,806
Unrealized Depreciation (9,041,985) (4,970,777)   (16,069,447) (93,542,780)   (44,609,757 )
Net Unrealized Appreciation (Depreciation) $ 424,488,414 $ 106,256,681 $   39,053,242 $ (28,622,870)  $   90,680,049

 

350 Notes to Quarterly Report

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

  Russell Investment     Russell Short Duration      Russell Tax Exempt     Russell Tax Exempt   Russell Commodity  
  Grade Bond Fund   Bond Fund High Yield Bond Fund   Bond Fund   Strategies Fund  
Cost of Investments $ 1,034,498,048 $ 832,684,935 290,898,914 $ 1,383,255,746 $ 644,404,590
Unrealized Appreciation $ 30,101,560 $ 8,071,911 $ 19,151,010 $ 78,379,985 $ —  
Unrealized Depreciation (4,705,818) (8,777,122) (898,198) (1,526,828) (119,707 )
Net Unrealized Appreciation (Depreciation) $ 25,395,742 $ (705,211) $ 18,252,812 $ 76,853,157 $ (119,707 )
    Russell Global     Russell Global Real   Russell Multi-Strategy   Russell Strategic Call        
  Infrastructure Fund     Estate Securities Fund   Income Fund     Overwriting Fund        
Cost of Investments $ 1,071,697,068 $ 1,150,994,476 $ 687,725,822 $ 57,141,007      
Unrealized Appreciation $ 142,304,862 $ 251,217,110 $ 11,294,280 $ 28,668,095      
Unrealized Depreciation (11,669,773) (13,361,557) (8,424,875) (1,106,337)      
Net Unrealized Appreciation (Depreciation) $ 130,635,089 $ 237,855,553 $ 2,869,405 $ 27,561,758      
  Select U.S. Equity    

Select International

                      
      Fund   Equity Fund                      
Cost of Investments $ 728,165,984 $ 805,822,804                    
Unrealized Appreciation $ 60,183,705 $ 63,523,394                      
Unrealized Depreciation (36,881,967) (95,424,982)                      
Net Unrealized Appreciation (Depreciation) $ 23,301,738 $ (31,901,588)                      

 

7. Restricted Securities
Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not
registered under the Act. The most common types of restricted securities are those sold under Rule 144A of the Act and commercial
paper sold under Section 4(2) of the Act.

A Fund may invest a portion of its net assets not to exceed 15% in securities that are illiquid. This limitation is applied at the time
of purchase. Illiquid securities are securities that may not be readily marketable, and that cannot be sold within seven days in
the ordinary course of business at the approximate amount at which the Fund has valued the securities. Restricted securities are
generally considered to be illiquid.

See each Fund’s Schedule of Investments for a list of restricted securities held by a Fund that are illiquid.

8. Pending Legal Proceedings
On October 17, 2013, Fred McClure filed a derivative lawsuit against RIM on behalf of ten funds: the Russell Commodity
Strategies Fund, Russell Emerging Markets Fund, Russell Global Equity Fund, Russell Global Infrastructure Fund, Russell Global
Opportunistic Credit Fund, Russell International Developed Markets Fund, Russell Multi-Strategy Alternative Fund, Russell
Strategic Bond Fund, Russell U.S. Small Cap Equity Fund and Russell Global Real Estate Securities Fund. The lawsuit, which
was filed in the United States District Court for the District of Massachusetts, seeks recovery under Section 36(b) of the Investment
Company Act, as amended, for the funds' alleged payment of excessive investment management fees to RIM. On December 8, 2014,
Fred McClure filed a second derivative lawsuit in the United States District Court for the District of Massachusetts. This second
suit involves the same ten funds, and the allegations are similar, although the second suit adds a claim alleging that RIFUS charged
the funds excessive administrative fees under Section 36(b). The plaintiff seeks on behalf of the funds recovery of the amount of the
allegedly excessive compensation or payments received from these ten funds and earnings that would have accrued to plaintiff had
that compensation not been paid or, alternatively, rescission of the contracts and restitution of all excessive fees paid, for a period
commencing one year prior to the filing of the lawsuit through the date of the trial. RIM and RIFUS are defending the actions.

The Russell Strategic Bond Fund is one of several defendants in a bankruptcy adversary avoidance claim in a Consolidated
Multidistrict Action styled In Re: Motors Liquidation Company, et al., Debtors, Motors Liquidation Company Avoidance Action
Trust, etc., v. JPMorgan Chase Bank, et al., United States District Bankruptcy Court for the Southern District of New York. The claim
relates to alleged improper payments to the Fund as a participating lender in a term loan provided to General Motors Company due
to the Fund’s security interests not being properly perfected. The Fund has filed answers denying liability and a crossclaim against
the administrative agent for the term loan lenders seeking damages arising from the agent’s failure to properly perfect the security
interests of the lenders.

Notes to Quarterly Report 351

 

Russell Investment Company
Russell Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

9. Subsequent Events
Management has evaluated the events and/or transactions that have occurred through the date this Quarterly Report was issued and
noted the following items requiring additional disclosures:

On August 1, 2016, the Board declared dividends payable from net investment income. Dividends were paid on August 3, 2016, to
shareholders of record effective with the opening of business on August 2, 2016.

On September 1, 2016, the Board declared dividends payable from net investment income. Dividends were paid on September 6,
2016, to shareholders of record effective with the opening of business on September 2, 2016.

352 Notes to Quarterly Report

 

Russell Investment Company
Russell Funds

Shareholder Requests for Additional Information — July 31, 2016 (Unaudited)

A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third quarters
of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii) at www.
russellinvestments.com; and (iii) at the Securities and Exchange Commission’s Office of Investor Education and Advocacy (formerly, the
Public Reference room).

The Board has delegated to RIM, as RIC’s investment adviser, the primary responsibility for monitoring, evaluating and voting proxies
solicited by or with respect to issuers of securities in which assets of the Funds may be invested. RIM has established a proxy voting
committee and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”). The Funds
maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders and third parties
of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio Holdings Disclosure
Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional Information (“SAI”). The SAI
and information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June
30, 2016 are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii) at www.russellinvestments.com; and (iii)
on the Securities and Exchange Commission’s website at www. sec.gov.

To reduce expenses, we may mail only one copy of the Funds’ prospectuses and each annual and semi-annual report to those addresses
shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your Financial Intermediary.

Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please contact
your Financial Intermediary for further details.

Shareholder Requests for Additional Information 353

 




 

Russell Investment
Company

Russell Investment Company is a
series investment company with
40 different investment portfolios
referred to as Funds. This
Quarterly Report reports on 14 of
these Funds.

 

Russell Investment Company

LifePoints® Funds

Quarterly Report

July 31, 2016 (Unaudited)

Table of Contents

  Page
Conservative Strategy Fund 3
Moderate Strategy Fund 6
Balanced Strategy Fund 10
Growth Strategy Fund 15
Equity Growth Strategy Fund 20
2020 Strategy Fund 25
2025 Strategy Fund 26
2030 Strategy Fund 27
2035 Strategy Fund 28
2040 Strategy Fund 29
2045 Strategy Fund 30
2050 Strategy Fund 31
2055 Strategy Fund 32
In Retirement Fund 33
Notes to Schedule of Investments 34
Notes to Quarterly Report 35
Shareholder Requests for Additional Information 48

 

 

Russell Investment Company - LifePoints® Funds.

Copyright © Russell Investments 2016. 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.

Fund objectives, risks, charges and expenses should be carefully considered before in-
vesting. A prospectus containing this and other important information must precede or
accompany this material. Please read the prospectus carefully before investing.

Securities distributed through Russell Investments Financial Services, LLC, member FINRA and part
of Russell Investments.

 

Russell Investment Company
Conservative Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
        Fair
        Value
    Shares   $
Investments in Russell Affiliated Mutual Funds - 97.5%        
Alternative - 8.0%        
Russell Global Infrastructure Fund Class Y 1,234,121   14,735
Russell Global Real Estate Securities Fund Class Y 376,623   14,745
        29,480
 
Domestic Equities - 5.0%        
Russell U.S. Defensive Equity Fund Class Y 108,121   5,488
Russell U.S. Dynamic Equity Fund Class Y 562,675   5,497
Select U.S. Equity Fund Class Y 659,053   7,329
        18,314
 
Fixed Income - 57.6%        
Russell Global Opportunistic Credit Fund Class Y 761,392   7,347
Russell Investment Grade Bond Fund Class Y 1,622,794   36,740
Russell Short Duration Bond Fund Class Y 4,373,781   84,370
Russell Strategic Bond Fund Class Y 7,568,465   84,541
        212,998
 
International Equities - 4.0%        
Russell Emerging Markets Fund Class Y 459,887   7,344
Select International Equity Fund Class Y 862,271   7,381
        14,725
 
Specialty - 22.9%        
Russell Multi-Strategy Income Fund Class Y 8,737,032   84,574
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $338,353)       360,091
 
Short-Term Investments - 2.3%        
Russell U.S. Cash Management Fund 8,525,518 (8) 8,526
Total Short-Term Investments        
(cost $8,526)       8,526
 
Total Investments 99.8%        
(identified cost $346,879)       368,617
 
Other Assets and Liabilities, Net - 0.2%       716
Net Assets - 100.0%       369,333

 

See accompanying notes which are an integral part of this quarterly report.

Conservative Strategy Fund 3

 

Russell Investment Company
Conservative Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)              
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
Russell 1000 Mini Index Futures 3 USD 360 09/16 10  
S&P 500 E-Mini Index Futures 52 USD 5,637 09/16 224  
S&P Mid 400 E-Mini Index Futures 4 USD 623 09/16 16  
Short Positions              
MSCI EAFE Mini Index Futures 40 USD 3,360 09/16 (33 )
MSCI Emerging Markets Mini Index Futures 20 USD 881 09/16 (72 )
Russell 1000 Mini Index Futures 3 USD 360 09/16 (10 )
Russell 2000 Mini Index Futures 5 USD 609 09/16 (17 )
S&P 500 E-Mini Index Futures 50 USD 5,421 09/16 (153 )
S&P Mid 400 E-Mini Index Futures 3 USD 467 09/16 (12 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)           (47 )

 

Options Written            
Amounts in thousands (except contract amounts)            
Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
  Number of     Premiums  
    Contracts     Received  
Outstanding October 31, 2015 —   $ —  
Opened 4,850   312  
Closed (4,850 ) (312 )
Expired —   —  
Outstanding July 31, 2016 —   $ —  

 

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of Montreal AUD 435 USD   323 08/05/16 (7 )
Bank of Montreal CAD 562 USD   433 08/05/16 3  
Bank of Montreal CHF 428 USD   438 08/05/16 (3 )
Bank of Montreal EUR 1,431 USD   1,590 08/05/16 (10 )
Bank of Montreal GBP 613 USD   822 08/05/16 11  
Bank of Montreal HKD 954 USD   123 08/05/16 —  
Bank of Montreal JPY 110,422 USD   1,076 08/05/16 (6 )
Bank of Montreal SEK 1,351 USD   159 08/05/16 1  
Bank of Montreal SGD 80 USD   59 08/05/16 —  
Commonwealth Bank of Australia AUD 435 USD   324 08/05/16 (6 )
Commonwealth Bank of Australia CAD 562 USD   435 08/05/16 5  
Commonwealth Bank of Australia CHF 428 USD   439 08/05/16 (2 )
Commonwealth Bank of Australia EUR 1,431 USD   1,596 08/05/16 (4 )
Commonwealth Bank of Australia GBP 613 USD   825 08/05/16 13  
Commonwealth Bank of Australia HKD 954 USD   123 08/05/16 —  
Commonwealth Bank of Australia JPY 110,422 USD   1,075 08/05/16 (7 )
Commonwealth Bank of Australia SEK 1,351 USD   160 08/05/16 2  
Commonwealth Bank of Australia SGD 80 USD   59 08/05/16 —  
State Street USD 671 AUD   892 08/05/16 7  
State Street USD 891 CAD   1,172 08/05/16 7  
State Street USD 31 CHF   30 08/05/16 —  
State Street USD 848 CHF   826 08/05/16 5  
State Street USD 164 EUR   147 08/05/16 1  
State Street USD 3,017 EUR   2,715 08/05/16 19  
State Street USD 1,755 GBP   1,332 08/05/16 7  

 

See accompanying notes which are an integral part of this quarterly report.

4 Conservative Strategy Fund

 

Russell Investment Company
Conservative Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street USD 317 HKD 2,456 08/05/16 —  
State Street USD 120 JPY 12,286 08/05/16 1  
State Street USD 2,019 JPY 208,557 08/05/16 25  
State Street USD 329 SEK 2,832 08/05/16 2  
State Street USD 122 SGD 165 08/05/16 1  
State Street AUD 23 USD 17 08/05/16 —  
State Street AUD 892 USD 670 09/08/16 (7 )
State Street CAD 49 USD 38 08/05/16 —  
State Street CAD 1,172 USD 891 09/08/16 (7 )
State Street CHF 826 USD 849 09/08/16 (5 )
State Street EUR 2,715 USD 3,021 09/08/16 (19 )
State Street GBP 107 USD 142 08/05/16 —  
State Street GBP 1,332 USD 1,756 09/08/16 (8 )
State Street HKD 548 USD 71 08/05/16 —  
State Street HKD 2,456 USD 317 09/08/16 —  
State Street JPY 208,557 USD 2,021 09/08/16 (25 )
State Street SEK 131 USD 16 08/05/16 —  
State Street SEK 2,832 USD 330 09/08/16 (2 )
State Street SGD 6 USD 4 08/05/16 —  
State Street SGD 165 USD 122 09/08/16 (1 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts       (9 )

 

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                    Practical            
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Investments in Russell Affiliated Mutual                            
Funds $ 360,091   $ —   $ — $ — $   360,091  
Short-Term Investments   —     —     —   8,526     8,526  
Total Investments 360,091   —   — 8,526   368,617  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 250   —   — —   250  
Foreign Currency Exchange Contracts 73   37   — —   110  
Liabilities                            
Futures Contracts (297 ) —   — —   (297 )
Foreign Currency Exchange Contracts —   (119 ) — —   (119 )
Total Other Financial Instruments* $ 26   $ (82 ) $ — $ — $   (56 )

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

Conservative Strategy Fund 5

 

Russell Investment Company
Moderate Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
        Fair
        Value
    Shares   $
Investments in Russell Affiliated Mutual Funds - 97.4%        
Alternative - 5.4%        
Russell Commodity Strategies Fund Class Y 2,088,297   11,423
Russell Global Infrastructure Fund Class Y 1,271,356   15,180
Russell Global Real Estate Securities Fund Class Y 156,813   6,139
        32,742
 
Domestic Equities - 15.4%        
Russell U.S. Defensive Equity Fund Class Y 474,342   24,078
Russell U.S. Dynamic Equity Fund Class Y 1,860,847   18,180
Russell U.S. Small Cap Equity Fund Class Y 859,903   24,198
Select U.S. Equity Fund Class Y 2,446,054   27,200
        93,656
 
Fixed Income - 60.6%        
Russell Global Opportunistic Credit Fund Class Y 10,326,971   99,655
Russell Investment Grade Bond Fund Class Y 3,330,385   75,400
Russell Strategic Bond Fund Class Y 17,275,526   192,968
        368,023
 
International Equities - 16.0%        
Russell Emerging Markets Fund Class Y 1,524,876   24,352
Russell Global Equity Fund Class Y 3,529,268   36,528
Select International Equity Fund Class Y 4,219,280   36,117
        96,997
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $544,777)       591,418
 
 
Short-Term Investments - 1.4%        
Russell U.S. Cash Management Fund 8,667,112 (8) 8,667
Total Short-Term Investments        
(cost $8,667)       8,667
 
Total Investments 98.8%        
(identified cost $553,444)       600,085
 
Other Assets and Liabilities, Net - 1.2%       7,189
Net Assets - 100.0%       607,274

 

See accompanying notes which are an integral part of this quarterly report.

6 Moderate Strategy Fund

 

Russell Investment Company
Moderate Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)              
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
Amsterdam Index Futures 12 EUR 1,072 08/16 12  
CAC40 Euro Index Futures 80 EUR 3,552 08/16 143  
DAX Index Futures 12 EUR 3,098 09/16 254  
Euro STOXX 50 Index Futures 71 EUR 2,118 09/16 132  
FTSE/MIB Index Futures 8 EUR 673 09/16 31  
IBEX 35 Index Futures 13 EUR 1,114 08/16 31  
OMXS 30 Index Futures 54 SEK 7,482 08/16 24  
Russell 1000 Mini Index Futures 8 USD 961 09/16 47  
S&P 500 E-Mini Index Futures 117 USD 12,683 09/16 488  
S&P Mid 400 E-Mini Index Futures 9 USD 1,401 09/16 69  
Short Positions              
FTSE 100 Index Futures 32 GBP 2,136 09/16 (323 )
MSCI EAFE Mini Index Futures 71 USD 5,964 09/16 (60 )
MSCI Emerging Markets Mini Index Futures 38 USD 1,675 09/16 (140 )
Russell 1000 Mini Index Futures 6 USD 721 09/16 (20 )
Russell 2000 Mini Index Futures 7 USD 852 09/16 (23 )
S&P 500 E-Mini Index Futures 113 USD 12,251 09/16 (346 )
S&P Mid 400 E-Mini Index Futures 7 USD 1,090 09/16 (29 )
S&P/TSX 60 Index Futures 39 CAD 6,596 09/16 (206 )
SPI 200 Index Futures 39 AUD 5,381 09/16 (264 )
TOPIX Index Futures 32 JPY 425,120 09/16 (2 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)           (182 )

 

Options Written                
Amounts in thousands (except contract amounts)              
    Number of Strike   Notional Expiration Fair Value  
  Call/Put Contracts Price   Amount Date $  
Euro STOXX 50 Index Put 3,477 2,596.70 EUR 10,094 09/16/16 (43 )
Total Liability for Options Written (premiums received $381)           (43 )

 

Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
    Number of     Premiums  
      Contracts     Received  
Outstanding October 31, 2015   —   $ —  
Opened   968,895 1,374
Closed (957,536 ) (485 )
Expired   (7,882 ) (508 )
Outstanding July 31, 2016   3,477 $ 381

 

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America CNY 39,000 USD 5,905 09/21/16 36  
Bank of America KRW 4,856,000 USD 4,192 09/21/16 (171 )
Bank of Montreal USD 587 AUD 781 08/05/16 6  
Bank of Montreal USD 780 CAD 1,026 08/05/16 6  
Bank of Montreal USD 742 CHF 723 08/05/16 4  
Bank of Montreal USD 2,642 EUR 2,378 08/05/16 16  
Bank of Montreal USD 1,537 GBP 1,167 08/05/16 7  
Bank of Montreal USD 277 HKD 2,151 08/05/16 —  
Bank of Montreal USD 1,768 JPY 182,629 08/05/16 22  
Bank of Montreal USD 288 SEK 2,480 08/05/16 2  

 

See accompanying notes which are an integral part of this quarterly report.

Moderate Strategy Fund 7

 

Russell Investment Company
Moderate Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of Montreal USD 107 SGD 144 08/05/16 1  
Bank of Montreal AUD 770 USD 572 08/05/16 (13 )
Bank of Montreal AUD 781 USD 586 09/08/16 (6 )
Bank of Montreal CAD 996 USD 768 08/05/16 6  
Bank of Montreal CAD 1,026 USD 780 09/08/16 (6 )
Bank of Montreal CHF 759 USD 777 08/05/16 (6 )
Bank of Montreal CHF 723 USD 744 09/08/16 (4 )
Bank of Montreal EUR 2,537 USD 2,819 08/05/16 (17 )
Bank of Montreal EUR 2,378 USD 2,646 09/08/16 (16 )
Bank of Montreal GBP 1,086 USD 1,457 08/05/16 20  
Bank of Montreal GBP 1,167 USD 1,537 09/08/16 (7 )
Bank of Montreal HKD 1,691 USD 218 08/05/16 —  
Bank of Montreal HKD 2,151 USD 277 09/08/16 —  
Bank of Montreal JPY 195,713 USD 1,907 08/05/16 (11 )
Bank of Montreal JPY 182,629 USD 1,770 09/08/16 (23 )
Bank of Montreal SEK 2,394 USD 282 08/05/16 3  
Bank of Montreal SEK 2,480 USD 288 09/08/16 (2 )
Bank of Montreal SGD 141 USD 105 08/05/16 (1 )
Bank of Montreal SGD 144 USD 107 09/08/16 (1 )
Commonwealth Bank of Australia USD 587 AUD 781 08/05/16 7  
Commonwealth Bank of Australia USD 780 CAD 1,026 08/05/16 6  
Commonwealth Bank of Australia USD 742 CHF 723 08/05/16 4  
Commonwealth Bank of Australia USD 2,643 EUR 2,378 08/05/16 15  
Commonwealth Bank of Australia USD 1,536 GBP 1,167 08/05/16 7  
Commonwealth Bank of Australia USD 277 HKD 2,151 08/05/16 —  
Commonwealth Bank of Australia USD 1,768 JPY 182,629 08/05/16 22  
Commonwealth Bank of Australia USD 288 SEK 2,480 08/05/16 2  
Commonwealth Bank of Australia USD 107 SGD 144 08/05/16 1  
Commonwealth Bank of Australia AUD 770 USD 574 08/05/16 (11 )
Commonwealth Bank of Australia AUD 781 USD 586 09/08/16 (7 )
Commonwealth Bank of Australia CAD 996 USD 771 08/05/16 8  
Commonwealth Bank of Australia CAD 1,026 USD 780 09/08/16 (6 )
Commonwealth Bank of Australia CHF 759 USD 779 08/05/16 (4 )
Commonwealth Bank of Australia CHF 723 USD 743 09/08/16 (4 )
Commonwealth Bank of Australia EUR 2,537 USD 2,828 08/05/16 (8 )
Commonwealth Bank of Australia EUR 2,378 USD 2,646 09/08/16 (15 )
Commonwealth Bank of Australia GBP 1,086 USD 1,463 08/05/16 24  
Commonwealth Bank of Australia GBP 1,167 USD 1,537 09/08/16 (7 )
Commonwealth Bank of Australia HKD 1,691 USD 218 08/05/16 —  
Commonwealth Bank of Australia HKD 2,151 USD 277 09/08/16 —  
Commonwealth Bank of Australia JPY 195,713 USD 1,906 08/05/16 (12 )
Commonwealth Bank of Australia JPY 182,629 USD 1,770 09/08/16 (22 )
Commonwealth Bank of Australia SEK 2,394 USD 284 08/05/16 4  
Commonwealth Bank of Australia SEK 2,480 USD 289 09/08/16 (2 )
Commonwealth Bank of Australia SGD 141 USD 105 08/05/16 —  
Commonwealth Bank of Australia SGD 144 USD 107 09/08/16 (1 )
State Street USD 73 CHF 71 08/05/16 —  
State Street USD 354 EUR 318 08/05/16 1  
State Street USD 255 JPY 26,169 08/05/16 1  
State Street USD 1,108 JPY 118,550 09/21/16 56  
State Street AUD 22 USD 16 08/05/16 —  
State Street AUD 3,910 USD 2,901 09/21/16 (67 )
State Street CAD 61 USD 47 08/05/16 1  
State Street CAD 1,030 USD 805 09/21/16 16  
State Street EUR 1,710 USD 1,946 09/21/16 31  
State Street GBP 161 USD 214 08/05/16 1  
State Street GBP 70 USD 102 09/21/16 9  
State Street HKD 919 USD 118 08/05/16 —  
State Street SEK 172 USD 20 08/05/16 —  
State Street SGD 6 USD 4 08/05/16 —  
State Street TWD 62,000 USD 1,929 09/21/16 (24 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts       (129 )

 

See accompanying notes which are an integral part of this quarterly report.

8 Moderate Strategy Fund

 

Russell Investment Company
Moderate Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Total Return Swap Contracts (*)            
Amounts in thousands            
    Notional Termination Fair Value  
Underlying Reference Entity Counterparty Amount Date $  
Dow Jones U.S. Real Estate Index Bank of America USD 7,952 09/02/16 (758 )
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       (758 )

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fee was based on the
3 Month LIBOR rate plus a fee of 0.050%.

Credit Default Swap Contracts              
 
Amounts in thousands                
Credit Indices                
          Fund (Pays)/      
          Receives   Termination Fair Value
Reference Entity Counterparty Notional Amount   Fixed Rate   Date $
CDX Emerging Markets Index Barclays USD 22,000 (1.000 %) 06/20/21 1,572
CDX NA High Yield Index Goldman Sachs USD 32,300 5.000 % 06/20/21 1,311
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $2,384             2,883

 

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                    Practical            
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Investments in Russell Affiliated Mutual                            
Funds $ 591,418   $ —   $ — $ — $   591,418  
Short-Term Investments   —     —     —   8,667     8,667  
Total Investments 591,418   —   — 8,667   600,085  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts 1,231   —   — —   1,231  
Foreign Currency Exchange Contracts —   345   — —   345  
Credit Default Swap Contracts —   2,883   — —   2,883  
Liabilities                            
Futures Contracts (1,413 ) —   — —   (1,413 )
Options Written (43 ) —   — —   (43 )
Foreign Currency Exchange Contracts —   (474 ) — —   (474 )
Total Return Swap Contracts —   (758 ) — —   (758 )
Total Other Financial Instruments* $ (225 ) $ 1,996   $ — $ — $   1,771  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

Moderate Strategy Fund 9

 

Russell Investment Company
Balanced Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
        Fair
        Value
    Shares   $
Investments in Russell Affiliated Mutual Funds - 97.3%        
Alternative - 7.1%        
Russell Commodity Strategies Fund Class Y 9,932,858   54,333
Russell Global Infrastructure Fund Class Y 8,605,729   102,752
Russell Global Real Estate Securities Fund Class Y 662,348   25,931
        183,016
 
Domestic Equities - 27.6%        
Russell U.S. Defensive Equity Fund Class Y 3,512,323   178,286
Russell U.S. Dynamic Equity Fund Class Y 18,369,377   179,469
Russell U.S. Small Cap Equity Fund Class Y 5,453,469   153,461
Select U.S. Equity Fund Class Y 17,828,111   198,248
        709,464
 
Fixed Income - 36.7%        
Russell Global Opportunistic Credit Fund Class Y 26,458,380   255,323
Russell Strategic Bond Fund Class Y 61,478,345   686,712
        942,035
 
International Equities - 25.9%        
Russell Emerging Markets Fund Class Y 9,665,037   154,351
Russell Global Equity Fund Class Y 24,873,142   257,437
Select International Equity Fund Class Y 29,771,843   254,847
        666,635
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $2,344,409)       2,501,150
 
Options Purchased - 0.2%        
(Number of Contracts)        
S&P 500 Index        
     Oct 2016 2,147.45 Put (43,981) USD  94,447 (ÿ) 2,185
     Nov 2016 2,147.45 Put (21,990) USD 47,222 (ÿ) 1,398
Total Options Purchased        
(cost $3,782)       3,583
 
Short-Term Investments - 1.5%        
Russell U.S. Cash Management Fund 38,817,666 (8) 38,818
Total Short-Term Investments        
(cost $38,818)       38,818
 
Total Investments 99.0%        
(identified cost $2,387,009)       2,543,551
 
Other Assets and Liabilities, Net - 1.0%       26,598
Net Assets - 100.0%       2,570,149

 

See accompanying notes which are an integral part of this quarterly report.

10 Balanced Strategy Fund

 

Russell Investment Company
Balanced Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)              
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
Amsterdam Index Futures 83 EUR 7,412 08/16 87  
CAC40 Euro Index Futures 529 EUR 23,485 08/16 946  
DAX Index Futures 85 EUR 21,943 09/16 1,643  
Euro STOXX 50 Index Futures 466 EUR 13,901 09/16 601  
FTSE/MIB Index Futures 59 EUR 4,962 09/16 124  
IBEX 35 Index Futures 89 EUR 7,628 08/16 211  
OMXS30 Index Futures 366 SEK 50,709 08/16 159  
Russell 1000 Mini Index Futures 26 USD 3,123 09/16 126  
S&P 500 E-Mini Index Futures 525 USD 56,915 09/16 2,344  
S&P Mid 400 E-Mini Index Futures 29 USD 4,515 09/16 183  
Short Positions              
FTSE 100 Index Futures 206 GBP 13,754 09/16 (1,875 )
MSCI EAFE Mini Index Futures 400 USD 33,604 09/16 (335 )
MSCI Emerging Markets Mini Index Futures 226 USD 9,961 09/16 (718 )
Russell 1000 Mini Index Futures 19 USD 2,282 09/16 (62 )
Russell 2000 Mini Index Futures 14 USD 1,704 09/16 (47 )
S&P 500 E-Mini Index Futures 349 USD 37,835 09/16 (1,069 )
S&P Mid 400 E-Mini Index Futures 23 USD 3,581 09/16 (90 )
S&P/TSX 60 Index Futures 255 CAD 43,126 09/16 (1,348 )
SPI 200 Index Futures 239 AUD 32,976 09/16 (1,619 )
TOPIX Index Futures 224 JPY 2,975,839 09/16 (8 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)           (747 )

 

Options Written                
Amounts in thousands (except contract amounts)              
    Number of Strike   Notional Expiration Fair Value  
  Call/Put Contracts Price   Amount Date $  
Euro STOXX 50 Index Put 25,790 2,596.70 EUR 74,871 09/16/16 (316 )
S&P 500 Index Put 87,961 1,908.84 USD 167,903 10/31/16 (998 )
S&P 500 Index Put 43,981 1,908.84 USD 83,953 11/30/16 (815 )
Total Liability for Options Written (premiums received $4,881)           (2,129 )

 

Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
    Number of     Premiums  
    Contracts     Received  
Outstanding October 31, 2015   —   $ —  
Opened 9,536,545   13,710  
Closed (9,278,211 ) (4,753 )
Expired (100,602 ) (4,076 )
Outstanding July 31, 2016 157,732   $ 4,881  

 

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America AUD 4,434 USD 3,293 09/21/16 (72 )
Bank of America CNY 229,000 USD 34,673 09/21/16 210  
Bank of America KRW 30,401,000 USD 26,243 09/21/16 (1,074 )
Bank of Montreal USD 2,204 AUD 2,932 08/05/16 24  
Bank of Montreal USD 2,928 CAD 3,854 08/05/16 24  
Bank of Montreal USD 2,788 CHF 2,716 08/05/16 14  
Bank of Montreal USD 9,924 EUR 8,930 08/05/16 61  
Bank of Montreal USD 5,771 GBP 4,381 08/05/16 27  
Bank of Montreal USD 6,639 JPY 685,897 08/05/16 84  

 

See accompanying notes which are an integral part of this quarterly report.

Balanced Strategy Fund 11

 

Russell Investment Company
Balanced Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of Montreal AUD 2,906 USD 2,159 08/05/16 (49 )
Bank of Montreal AUD 2,932 USD 2,202 09/08/16 (24 )
Bank of Montreal CAD 3,757 USD 2,900 08/05/16 22  
Bank of Montreal CAD 3,854 USD 2,929 09/08/16 (24 )
Bank of Montreal CHF 2,862 USD 2,931 08/05/16 (22 )
Bank of Montreal CHF 2,716 USD 2,793 09/08/16 (15 )
Bank of Montreal EUR 9,573 USD 10,639 08/05/16 (65 )
Bank of Montreal EUR 8,930 USD 9,937 09/08/16 (61 )
Bank of Montreal GBP 4,098 USD 5,497 08/05/16 74  
Bank of Montreal GBP 4,381 USD 5,775 09/08/16 (27 )
Bank of Montreal JPY 738,582 USD 7,198 08/05/16 (41 )
Bank of Montreal JPY 685,897 USD 6,646 09/08/16 (84 )
BNP Paribas AUD 4,434 USD 3,291 09/21/16 (73 )
Commonwealth Bank of Australia USD 2,203 AUD 2,932 08/05/16 25  
Commonwealth Bank of Australia USD 2,929 CAD 3,854 08/05/16 23  
Commonwealth Bank of Australia USD 2,787 CHF 2,716 08/05/16 16  
Commonwealth Bank of Australia USD 9,926 EUR 8,930 08/05/16 58  
Commonwealth Bank of Australia USD 5,771 GBP 4,381 08/05/16 28  
Commonwealth Bank of Australia USD 6,640 JPY 685,897 08/05/16 83  
Commonwealth Bank of Australia AUD 2,906 USD 2,165 08/05/16 (43 )
Commonwealth Bank of Australia AUD 2,932 USD 2,201 09/08/16 (25 )
Commonwealth Bank of Australia CAD 3,757 USD 2,909 08/05/16 31  
Commonwealth Bank of Australia CAD 3,854 USD 2,930 09/08/16 (23 )
Commonwealth Bank of Australia CHF 2,862 USD 2,938 08/05/16 (16 )
Commonwealth Bank of Australia CHF 2,716 USD 2,792 09/08/16 (16 )
Commonwealth Bank of Australia EUR 9,573 USD 10,675 08/05/16 (29 )
Commonwealth Bank of Australia EUR 8,930 USD 9,940 09/08/16 (58 )
Commonwealth Bank of Australia GBP 4,098 USD 5,519 08/05/16 96  
Commonwealth Bank of Australia GBP 4,381 USD 5,774 09/08/16 (28 )
Commonwealth Bank of Australia JPY 738,582 USD 7,193 08/05/16 (46 )
Commonwealth Bank of Australia JPY 685,897 USD 6,647 09/08/16 (84 )
HSBC AUD 2,906 USD 2,163 08/05/16 (45 )
HSBC CAD 3,757 USD 2,906 08/05/16 29  
HSBC CHF 2,862 USD 2,935 08/05/16 (18 )
HSBC EUR 9,573 USD 10,658 08/05/16 (46 )
HSBC GBP 4,098 USD 5,513 08/05/16 89  
HSBC JPY 738,582 USD 7,193 08/05/16 (47 )
National Australia Bank Limited AUD 4,434 USD 3,292 09/21/16 (72 )
Royal Bank of Canada USD 2,205 AUD 2,932 08/05/16 23  
Royal Bank of Canada USD 2,930 CAD 3,854 08/05/16 22  
Royal Bank of Canada USD 2,786 CHF 2,716 08/05/16 17  
Royal Bank of Canada USD 9,921 EUR 8,930 08/05/16 64  
Royal Bank of Canada USD 5,774 GBP 4,381 08/05/16 24  
Royal Bank of Canada USD 6,638 JPY 685,897 08/05/16 85  
Royal Bank of Canada AUD 2,906 USD 2,161 08/05/16 (47 )
Royal Bank of Canada AUD 2,932 USD 2,203 09/08/16 (23 )
Royal Bank of Canada CAD 3,757 USD 2,904 08/05/16 26  
Royal Bank of Canada CAD 3,854 USD 2,930 09/08/16 (22 )
Royal Bank of Canada CHF 2,862 USD 2,935 08/05/16 (19 )
Royal Bank of Canada CHF 2,716 USD 2,790 09/08/16 (17 )
Royal Bank of Canada EUR 9,573 USD 10,653 08/05/16 (51 )
Royal Bank of Canada EUR 8,930 USD 9,934 09/08/16 (64 )
Royal Bank of Canada GBP 4,098 USD 5,511 08/05/16 88  
Royal Bank of Canada GBP 4,381 USD 5,778 09/08/16 (24 )
Royal Bank of Canada JPY 738,582 USD 7,195 08/05/16 (44 )
Royal Bank of Canada JPY 685,897 USD 6,645 09/08/16 (86 )
Standard Chartered AUD 4,434 USD 3,293 09/21/16 (72 )
State Street USD 602 CHF 585 08/05/16 2  
State Street USD 2,868 EUR 2,573 08/05/16 9  
State Street USD 5,206 GBP 3,580 09/21/16 (464 )
State Street USD 4,165 HKD 32,310 08/05/16 (1 )
State Street USD 2,055 JPY 210,740 08/05/16 11  
State Street USD 10,935 JPY 1,170,450 09/21/16 557  

 

See accompanying notes which are an integral part of this quarterly report.

12 Balanced Strategy Fund

 

Russell Investment Company
Balanced Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street USD 4,328 SEK 37,252 08/05/16 25  
State Street USD 1,603 SGD 2,164 08/05/16 11  
State Street AUD 106 USD 79 08/05/16 (1 )
State Street CAD 389 USD 302 08/05/16 4  
State Street CAD 8,920 USD 6,970 09/21/16 136  
State Street CHF 5,120 USD 5,317 09/21/16 20  
State Street EUR 6,770 USD 7,705 09/21/16 121  
State Street GBP 1,135 USD 1,506 08/05/16 4  
State Street HKD 6,783 USD 875 08/05/16 —  
State Street HKD 25,527 USD 3,291 08/05/16 1  
State Street HKD 32,310 USD 4,167 09/08/16 —  
State Street SEK 1,125 USD 134 08/05/16 2  
State Street SEK 36,127 USD 4,258 08/05/16 36  
State Street SEK 37,252 USD 4,335 09/08/16 (27 )
State Street SEK 2,750 USD 339 09/21/16 17  
State Street SGD 34 USD 25 08/05/16 —  
State Street SGD 2,130 USD 1,580 08/05/16 (8 )
State Street SGD 2,164 USD 1,603 09/08/16 (11 )
State Street TWD 358,000 USD 11,140 09/21/16 (141 )
UBS USD 2,204 AUD 2,932 08/05/16 24  
UBS USD 2,928 CAD 3,854 08/05/16 24  
UBS USD 2,787 CHF 2,716 08/05/16 16  
UBS USD 9,924 EUR 8,930 08/05/16 61  
UBS USD 5,772 GBP 4,381 08/05/16 27  
UBS USD 6,641 JPY 685,897 08/05/16 82  
UBS AUD 2,932 USD 2,202 09/08/16 (24 )
UBS AUD 4,434 USD 3,291 09/21/16 (73 )
UBS CAD 3,854 USD 2,928 09/08/16 (24 )
UBS CHF 2,716 USD 2,792 09/08/16 (16 )
UBS EUR 8,930 USD 9,938 09/08/16 (60 )
UBS GBP 4,381 USD 5,775 09/08/16 (27 )
UBS JPY 685,897 USD 6,648 09/08/16 (84 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts       (1,100 )

 

Total Return Swap Contracts (*)            
Amounts in thousands            
    Notional Termination Fair Value  
Underlying Reference Entity Counterparty Amount Date $  
Dow Jones U.S. Real Estate Index Bank of America USD 35,085 09/02/16 (3,343 )
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       (3,343 )

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fee is based on the 3
Month LIBOR rate plus a fee of 0.050%.

Credit Default Swap Contracts            
 
Amounts in thousands              
Credit Indices              
        Fund (Pays)/      
        Receives   Termination Fair Value
Reference Entity Counterparty Notional Amount Fixed Rate   Date $
CDX Emerging Markets Index Morgan Stanley USD 62,700 (1.000 %) 06/20/21 4,480
CDX NA High Yield Index Goldman Sachs USD 113,600 5.000 % 06/20/21 4,611
Total Fair Value on Open Credit Indices Premiums Paid (Received) - $7,097           9,091

 

See accompanying notes which are an integral part of this quarterly report.

Balanced Strategy Fund 13

 

Russell Investment Company
Balanced Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
 
Amounts in thousands                            
 
            Fair Value                
                      Practical          
Portfolio Summary   Level 1   Level 2   Level 3 Expedient (a)   Total  
Investments in Russell Affiliated Mutual                            
Funds $ 2,501,150   $ —   $ — $ — $ 2,501,150  
Options Purchased   3,583   —   — — 3,583  
Short-Term Investments     —     —     —   38,818   38,818  
Total Investments 2,504,733   —   — 38,818 2,543,551  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts   6,424   —   — — 6,424  
Foreign Currency Exchange Contracts   36   2,521   — — 2,557  
Credit Default Swap Contracts   —   9,091   — — 9,091  
Liabilities                            
Futures Contracts   (7,171 ) —   — — (7,171 )
Options Written   (2,129 ) —   — — (2,129 )
Foreign Currency Exchange Contracts   (1 ) (3,656 ) — — (3,657 )
Total Return Swap Contracts   —   (3,343 ) — — (3,343 )
Total Other Financial Instruments*   $ (2,841 ) $ 4,613   $ — $ — $ 1,772  

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

14 Balanced Strategy Fund

 

Russell Investment Company
Growth Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
        Fair
        Value
    Shares   $
Investments in Russell Affiliated Mutual Funds - 97.8%        
Alternative - 9.9%        
Russell Commodity Strategies Fund Class Y 8,577,954   46,921
Russell Global Infrastructure Fund Class Y 5,588,033   66,721
Russell Global Real Estate Securities Fund Class Y 1,285,994   50,347
        163,989
 
Domestic Equities - 35.9%        
Russell U.S. Defensive Equity Fund Class Y 2,608,849   132,425
Russell U.S. Dynamic Equity Fund Class Y 13,611,344   132,983
Russell U.S. Small Cap Equity Fund Class Y 5,302,924   149,224
Select U.S. Equity Fund Class Y 16,410,789   182,489
        597,121
 
Fixed Income - 17.9%        
Russell Global Opportunistic Credit Fund Class Y 8,595,770   82,949
Russell Strategic Bond Fund Class Y 19,216,076   214,644
        297,593
 
International Equities - 34.1%        
Russell Emerging Markets Fund Class Y 9,389,555   149,951
Russell Global Equity Fund Class Y 19,346,779   200,239
Select International Equity Fund Class Y 25,241,507   216,068
        566,258
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $1,559,624)       1,624,961
 
Options Purchased - 0.2%        
(Number of Contracts)        
S&P 500 Index        
     Oct 2016 2,143.18 Put (38,202) USD 81,874 (ÿ) 1,826
     Nov 2016 2,143.18 Put (19,078) USD  40,888 (ÿ) 1,184
Total Options Purchased        
(cost $6,515)       3,010
 
Short-Term Investments - 1.5%        
Russell U.S. Cash Management Fund 24,331,095 (8) 24,331
Total Short-Term Investments        
(cost $24,331)       24,331
 
Total Investments 99.5%        
(identified cost $1,590,470)       1,652,302
 
Other Assets and Liabilities, Net - 0.5%       9,199
Net Assets - 100.0%       1,661,501

 

See accompanying notes which are an integral part of this quarterly report.

Growth Strategy Fund 15

 

Russell Investment Company
Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)              
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
Amsterdam Index Futures 50 EUR 4,465 08/16 52  
CAC40 Euro Index Futures 318 EUR 14,118 08/16 568  
DAX Index Futures 51 EUR 13,166 09/16 987  
Euro STOXX 50 Index Futures 281 EUR 8,382 09/16 399  
FTSE/MIB Index Futures 36 EUR 3,028 09/16 75  
IBEX 35 Index Futures 54 EUR 4,628 08/16 128  
MSCI EAFE Mini Index Futures 76 USD 6,385 09/16 39  
MSCI Emerging Markets Mini Index Futures 37 USD 1,631 09/16 130  
OMXS30 Index Futures 220 SEK 30,481 08/16 96  
Russell 1000 Mini Index Futures 20 USD 2,402 09/16 87  
Russell 2000 Mini Sep16 14 USD 1,704 09/16 71  
S&P 500 E-Mini Index Futures 391 USD 42,388 09/16 1,701  
S&P Mid 400 E-Mini Index Futures 21 USD 3,269 09/16 109  
Short Positions              
FTSE 100 Index Futures 90 GBP 6,009 09/16 (847 )
MSCI EAFE Mini Index Futures 205 USD 17,222 09/16 (172 )
MSCI Emerging Markets Mini Index Futures 124 USD 5,465 09/16 (388 )
S&P/TSX 60 Index Futures 169 CAD 28,581 09/16 (893 )
SPI 200 Index Futures 185 AUD 25,525 09/16 (1,253 )
TOPIX Index Futures 115 JPY 1,527,776 09/16 (5 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)           884  

 

Options Written                
Amounts in thousands (except contract amounts)              
    Number of Strike   Notional Expiration Fair Value  
  Call/Put Contracts Price   Amount Date $  
Euro STOXX 50 Index Put 22,408 2,596.70 EUR 65,053 09/16/16 (274 )
S&P 500 Index Put 76,404 1,905.05 USD 145,553 10/31/16 (973 )
S&P 500 Index Put 38,156 1,905.05 USD 72,689 11/30/16 (784 )
Total Liability for Options Written (premiums received $4,209)           (2,031 )

 

Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
    Number of     Premiums  
      Contracts     Received  
Outstanding October 31, 2015   —   $ —  
Opened 8,019,505   11,510  
Closed (7,802,387 ) (4,250 )
Expired   (80,150 ) (3,051 )
Outstanding July 31, 2016   136,968   $ 4,209  

 

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD 74 CAD 95 09/21/16 (2 )
Bank of America USD 1,598 GBP 1,095 09/21/16 (147 )
Bank of America USD 2,432 JPY 260,060 09/21/16 122  
Bank of America AUD 4,813 USD 3,574 09/21/16 (78 )
Bank of America CNY 177,000 USD 26,800 09/21/16 161  
Bank of America EUR 450 USD 513 09/21/16 9  
Bank of America KRW 25,987,000 USD 22,433 09/21/16 (919 )
Bank of America SEK 448 USD 55 09/21/16 3  
Bank of Montreal USD 1,347 AUD 1,793 08/05/16 15  
Bank of Montreal USD 1,790 CAD 2,356 08/05/16 14  

 

See accompanying notes which are an integral part of this quarterly report.

16 Growth Strategy Fund

 

Russell Investment Company
Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of Montreal USD 1,704 CHF 1,660 08/05/16 9  
Bank of Montreal USD 6,066 EUR 5,459 08/05/16 37  
Bank of Montreal USD 3,528 GBP 2,679 08/05/16 17  
Bank of Montreal USD 4,059 JPY 419,298 08/05/16 51  
Bank of Montreal AUD 1,782 USD 1,324 08/05/16 (30 )
Bank of Montreal AUD 1,793 USD 1,346 09/08/16 (15 )
Bank of Montreal CAD 2,304 USD 1,778 08/05/16 14  
Bank of Montreal CAD 2,356 USD 1,790 09/08/16 (15 )
Bank of Montreal CHF 1,756 USD 1,798 08/05/16 (14 )
Bank of Montreal CHF 1,660 USD 1,707 09/08/16 (9 )
Bank of Montreal EUR 5,871 USD 6,525 08/05/16 (40 )
Bank of Montreal EUR 5,459 USD 6,074 09/08/16 (37 )
Bank of Montreal GBP 2,513 USD 3,372 08/05/16 46  
Bank of Montreal GBP 2,679 USD 3,530 09/08/16 (17 )
Bank of Montreal JPY 452,978 USD 4,415 08/05/16 (25 )
Bank of Montreal JPY 419,298 USD 4,063 09/08/16 (51 )
BNP Paribas USD 74 CAD 95 09/21/16 (2 )
BNP Paribas USD 1,599 GBP 1,095 09/21/16 (149 )
BNP Paribas USD 2,430 JPY 260,060 09/21/16 123  
BNP Paribas AUD 4,813 USD 3,572 09/21/16 (79 )
BNP Paribas EUR 450 USD 513 09/21/16 9  
BNP Paribas SEK 448 USD 55 09/21/16 3  
Commonwealth Bank of Australia USD 1,347 AUD 1,793 08/05/16 15  
Commonwealth Bank of Australia USD 1,791 CAD 2,356 08/05/16 14  
Commonwealth Bank of Australia USD 1,704 CHF 1,660 08/05/16 10  
Commonwealth Bank of Australia USD 6,068 EUR 5,459 08/05/16 36  
Commonwealth Bank of Australia USD 3,528 GBP 2,679 08/05/16 17  
Commonwealth Bank of Australia USD 4,059 JPY 419,298 08/05/16 51  
Commonwealth Bank of Australia AUD 1,782 USD 1,328 08/05/16 (26 )
Commonwealth Bank of Australia AUD 1,793 USD 1,346 09/08/16 (15 )
Commonwealth Bank of Australia CAD 2,304 USD 1,784 08/05/16 19  
Commonwealth Bank of Australia CAD 2,356 USD 1,791 09/08/16 (14 )
Commonwealth Bank of Australia CHF 1,756 USD 1,802 08/05/16 (10 )
Commonwealth Bank of Australia CHF 1,660 USD 1,706 09/08/16 (10 )
Commonwealth Bank of Australia EUR 5,871 USD 6,547 08/05/16 (18 )
Commonwealth Bank of Australia EUR 5,459 USD 6,076 09/08/16 (35 )
Commonwealth Bank of Australia GBP 2,513 USD 3,385 08/05/16 58  
Commonwealth Bank of Australia GBP 2,679 USD 3,530 09/08/16 (17 )
Commonwealth Bank of Australia JPY 452,978 USD 4,411 08/05/16 (28 )
Commonwealth Bank of Australia JPY 419,298 USD 4,064 09/08/16 (52 )
HSBC AUD 1,782 USD 1,327 08/05/16 (28 )
HSBC CAD 2,304 USD 1,782 08/05/16 18  
HSBC CHF 1,756 USD 1,800 08/05/16 (11 )
HSBC EUR 5,871 USD 6,536 08/05/16 (28 )
HSBC GBP 2,513 USD 3,381 08/05/16 55  
HSBC JPY 452,978 USD 4,411 08/05/16 (29 )
National Australia Bank Limited USD 74 CAD 95 09/21/16 (2 )
National Australia Bank Limited USD 1,598 GBP 1,095 09/21/16 (147 )
National Australia Bank Limited USD 2,431 JPY 260,060 09/21/16 122  
National Australia Bank Limited AUD 4,813 USD 3,573 09/21/16 (78 )
National Australia Bank Limited EUR 450 USD 513 09/21/16 9  
National Australia Bank Limited SEK 448 USD 55 09/21/16 3  
Royal Bank of Canada USD 1,348 AUD 1,793 08/05/16 14  
Royal Bank of Canada USD 1,791 CAD 2,356 08/05/16 14  
Royal Bank of Canada USD 1,703 CHF 1,660 08/05/16 10  
Royal Bank of Canada USD 6,065 EUR 5,459 08/05/16 39  
Royal Bank of Canada USD 3,530 GBP 2,679 08/05/16 15  
Royal Bank of Canada USD 4,058 JPY 419,298 08/05/16 52  
Royal Bank of Canada AUD 1,782 USD 1,326 08/05/16 (29 )
Royal Bank of Canada AUD 1,793 USD 1,347 09/08/16 (14 )
Royal Bank of Canada CAD 2,304 USD 1,781 08/05/16 16  
Royal Bank of Canada CAD 2,356 USD 1,791 09/08/16 (14 )
Royal Bank of Canada CHF 1,756 USD 1,800 08/05/16 (12 )

 

See accompanying notes which are an integral part of this quarterly report.

Growth Strategy Fund 17

 

Russell Investment Company
Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts                
Amounts in  thousands                
              Unrealized  
              Appreciation  
      Amount Amount   (Depreciation)  
Counterparty     Sold Bought   Settlement Date $  
Royal Bank of Canada CHF 1,660 USD 1,706 09/08/16 (11 )
Royal Bank of Canada EUR 5,871 USD 6,533 08/05/16 (31 )
Royal Bank of Canada EUR 5,459 USD 6,073 09/08/16 (39 )
Royal Bank of Canada GBP 2,513 USD 3,380 08/05/16 55  
Royal Bank of Canada GBP 2,679 USD 3,532 09/08/16 (15 )
Royal Bank of Canada JPY 452,978 USD 4,413 08/05/16 (27 )
Royal Bank of Canada JPY 419,298 USD 4,062 09/08/16 (52 )
Standard Chartered USD 74 CAD 95 09/21/16 (2 )
Standard Chartered USD 1,598 GBP 1,095 09/21/16 (146 )
Standard Chartered USD 2,432 JPY 260,060 09/21/16 121  
Standard Chartered AUD 4,813 USD 3,574 09/21/16 (78 )
Standard Chartered EUR 450 USD 513 09/21/16 9  
Standard Chartered SEK 448 USD 55 09/21/16 3  
State Street USD 392 CHF 381 08/05/16 1  
State Street USD 1,839 EUR 1,650 08/05/16 6  
State Street USD 2,546 HKD 19,752 08/05/16 —  
State Street USD 1,314 JPY 134,721 08/05/16 7  
State Street USD 2,646 SEK 22,772 08/05/16 16  
State Street USD 980 SGD 1,323 08/05/16 7  
State Street AUD 41 USD 31 08/05/16 (1 )
State Street CAD 208 USD 161 08/05/16 2  
State Street GBP 662 USD 878 08/05/16 2  
State Street HKD 4,096 USD 528 08/05/16 —  
State Street HKD 15,656 USD 2,019 08/05/16 1  
State Street HKD 19,752 USD 2,547 09/08/16 —  
State Street SEK 615 USD 73 08/05/16 1  
State Street SEK 22,157 USD 2,612 08/05/16 22  
State Street SEK 22,772 USD 2,650 09/08/16 (16 )
State Street SGD 17 USD 13 08/05/16 —  
State Street SGD 1,306 USD 969 08/05/16 (5 )
State Street SGD 1,323 USD 980 09/08/16 (7 )
State Street TWD 264,000 USD 8,215 09/21/16 (105 )
UBS USD 1,348 AUD 1,793 08/05/16 15  
UBS USD 1,790 CAD 2,356 08/05/16 15  
UBS USD 1,704 CHF 1,660 08/05/16 10  
UBS USD 6,067 EUR 5,459 08/05/16 37  
UBS USD 3,528 GBP 2,679 08/05/16 17  
UBS USD 4,059 JPY 419,298 08/05/16 50  
UBS AUD 1,793 USD 1,346 09/08/16 (14 )
UBS CAD 2,356 USD 1,790 09/08/16 (15 )
UBS CHF 1,660 USD 1,707 09/08/16 (10 )
UBS EUR 5,459 USD 6,075 09/08/16 (37 )
UBS GBP 2,679 USD 3,531 09/08/16 (16 )
UBS JPY 419,298 USD 4,064 09/08/16 (52 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts       (1,308 )
 
Total Return Swap Contracts (*)                
Amounts in thousands                
        Notional Termination Fair Value  
Underlying Reference Entity Counterparty Amount Date $  
Dow Jones U.S. Real Estate Index Bank of America USD 65,961 09/02/16 (6,286 )
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       (6,286 )

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fee was based on the
3 Month LIBOR rate plus a fee of 0.050%.

See accompanying notes which are an integral part of this quarterly report.

18 Growth Strategy Fund

 

Russell Investment Company
Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                        
 
Amounts in thousands                            
 
            Fair Value                
                      Practical          
Portfolio Summary   Level 1   Level 2   Level 3 Expedient (a)   Total  
Investments in Russell Affiliated Mutual                            
Funds $ 1,624,961   $ —   $ — $ — $ 1,624,961  
Options Purchased   3,010   —   — — 3,010  
Short-Term Investments     —     —     —   24,331   24,331  
Total Investments 1,627,971   —   — 24,331 1,652,302  
 
 
Other Financial Instruments                            
Assets                            
Futures Contracts   4,442   —   — — 4,442  
Foreign Currency Exchange Contracts   22   1,595   — — 1,617  
Liabilities                            
Futures Contracts   (3,558 ) —   — — (3,558 )
Options Written   (2,031 ) —   — — (2,031 )
Foreign Currency Exchange Contracts   —   (2,925 ) — — (2,925 )
Total Return Swap Contracts   —   (6,286 ) — — (6,286 )
Total Other Financial Instruments*   $ (1,125 ) $ (7,616 ) $ — $ — $ (8,741 )

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

Growth Strategy Fund 19

 

Russell Investment Company
Equity Growth Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
        Fair
        Value
    Shares   $
Investments in Russell Affiliated Mutual Funds - 97.9%        
Alternative - 9.8%        
Russell Commodity Strategies Fund Class Y 3,545,065   19,392
Russell Global Infrastructure Fund Class Y 2,325,141   27,761
Russell Global Real Estate Securities Fund Class Y 536,644   21,010
        68,163
 
Domestic Equities – 39.0%        
Russell U.S. Defensive Equity Fund Class Y 1,221,294   61,993
Russell U.S. Dynamic Equity Fund Class Y 6,387,469   62,406
Russell U.S. Small Cap Equity Fund Class Y 2,703,856   76,086
Select U.S. Equity Fund Class Y 6,219,365   69,159
        269,644
 
Fixed Income - 9.0%        
Russell Global Opportunistic Credit Fund Class Y 6,431,358   62,063
 
International Equities - 40.1%        
Russell Emerging Markets Fund Class Y 5,226,941   83,474
Russell Global Equity Fund Class Y 10,090,774   104,441
Select International Equity Fund Class Y 10,438,204   89,351
        277,266
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $663,517)       677,136
 
 
Short-Term Investments - 1.3%        
Russell U.S. Cash Management Fund 9,419,491 (8) 9,419
Total Short-Term Investments        
(cost $9,419)       9,419
 
Total Investments 99.2%        
(identified cost $672,936)       686,555
 
Other Assets and Liabilities, Net - 0.8%       5,256
Net Assets - 100.0%       691,811

 

See accompanying notes which are an integral part of this quarterly report.

20 Equity Growth Strategy Fund

 

Russell Investment Company
Equity Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Futures Contracts              
 
Amounts in thousands (except contract amounts)              
            Unrealized  
            Appreciation  
    Number of Notional Expiration (Depreciation)  
    Contracts Amount Date $  
Long Positions              
Amsterdam Index Futures 19 EUR 1,697 08/16 20  
CAC40 Euro Index Futures 121 EUR 5,372 08/16 217  
DAX Index Futures 19 EUR 4,905 09/16 402  
Euro STOXX 50 Index Futures 108 EUR 3,222 09/16 201  
FTSE/MIB Index Futures 14 EUR 1,177 09/16 54  
IBEX 35 Index Futures 21 EUR 1,800 08/16 50  
MSCI EAFE Mini Index Futures 30 USD 2,520 09/16 16  
OMXS30 Index Futures 84 SEK 11,638 08/16 37  
Russell 1000 Mini Index Futures 7 USD 841 09/16 42  
Russell 2000 Mini Sep16 4 USD 487 09/16 20  
S&P 500 E-Mini Index Futures 159 USD 17,237 09/16 715  
S&P Mid 400 E-Mini Index Futures 8 USD 1,246 09/16 53  
Short Positions              
FTSE 100 Index Futures 27 GBP 1,803 09/16 (273 )
MSCI EAFE Mini Index Futures 95 USD 7,981 09/16 (80 )
MSCI Emerging Markets Mini Index Futures 218 USD 9,608 09/16 (702 )
S&P/TSX 60 Index Futures 72 CAD 12,177 09/16 (381 )
SPI 200 Index Futures 75 AUD 10,348 09/16 (507 )
TOPIX Index Futures 40 JPY 531,401 09/16 (4 )
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)           (120 )

 

Options Written                
Amounts in thousands (except contract amounts)              
    Number of Strike   Notional Expiration Fair Value  
  Call/Put Contracts Price   Amount Date $  
Euro STOXX 50 Index Put 10,208 2,596.70 EUR 29,635 09/16/16 (125 )
Total Liability for Options Written (premiums received $1,117)           (125 )

 

Transactions in options written contracts for the period ended July 31, 2016 were as follows:    
    Number of     Premiums  
      Contracts     Received  
Outstanding October 31, 2015   —   $ —  
Opened 2,456,266   3,017  
Closed (2,437,328 ) (1,338 )
Expired   (8,730 ) (562 )
Outstanding July 31, 2016   10,208   $ 1,117  

 

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of America USD 741 EUR 650 09/21/16 (13 )
Bank of America USD 2,255 GBP 1,545 09/21/16 (208 )
Bank of America USD 3,245 JPY 347,040 09/21/16 162  
Bank of America AUD 3,815 USD 2,833 09/21/16 (62 )
Bank of America CAD 355 USD 278 09/21/16 6  
Bank of America CNY 95,000 USD 14,384 09/21/16 87  
Bank of America KRW 13,730,000 USD 11,852 09/21/16 (486 )
Bank of America SEK 350 USD 43 09/21/16 2  
Bank of Montreal USD 612 AUD 814 08/05/16 7  
Bank of Montreal USD 813 CAD 1,070 08/05/16 7  
Bank of Montreal USD 774 CHF 754 08/05/16 4  
Bank of Montreal USD 2,754 EUR 2,478 08/05/16 17  
Bank of Montreal USD 1,601 GBP 1,216 08/05/16 8  

 

See accompanying notes which are an integral part of this quarterly report.

Equity Growth Strategy Fund 21

 

Russell Investment Company
Equity Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
Bank of Montreal USD 1,842 JPY 190,343 08/05/16 23  
Bank of Montreal AUD 806 USD 599 08/05/16 (14 )
Bank of Montreal AUD 814 USD 611 09/08/16 (7 )
Bank of Montreal CAD 1,043 USD 805 08/05/16 6  
Bank of Montreal CAD 1,070 USD 813 09/08/16 (7 )
Bank of Montreal CHF 794 USD 813 08/05/16 (6 )
Bank of Montreal CHF 754 USD 775 09/08/16 (4 )
Bank of Montreal EUR 2,656 USD 2,952 08/05/16 (18 )
Bank of Montreal EUR 2,478 USD 2,757 09/08/16 (17 )
Bank of Montreal GBP 1,137 USD 1,525 08/05/16 21  
Bank of Montreal GBP 1,216 USD 1,602 09/08/16 (8 )
Bank of Montreal JPY 204,943 USD 1,997 08/05/16 (11 )
Bank of Montreal JPY 190,343 USD 1,844 09/08/16 (24 )
BNP Paribas USD 741 EUR 650 09/21/16 (13 )
BNP Paribas USD 2,256 GBP 1,545 09/21/16 (209 )
BNP Paribas USD 3,243 JPY 347,040 09/21/16 165  
BNP Paribas AUD 3,815 USD 2,832 09/21/16 (63 )
BNP Paribas CAD 355 USD 278 09/21/16 6  
BNP Paribas SEK 350 USD 43 09/21/16 2  
Commonwealth Bank of Australia USD 611 AUD 814 08/05/16 7  
Commonwealth Bank of Australia USD 813 CAD 1,070 08/05/16 6  
Commonwealth Bank of Australia USD 773 CHF 754 08/05/16 4  
Commonwealth Bank of Australia USD 2,755 EUR 2,478 08/05/16 16  
Commonwealth Bank of Australia USD 1,601 GBP 1,216 08/05/16 8  
Commonwealth Bank of Australia USD 1,843 JPY 190,343 08/05/16 23  
Commonwealth Bank of Australia AUD 806 USD 601 08/05/16 (12 )
Commonwealth Bank of Australia AUD 814 USD 611 09/08/16 (7 )
Commonwealth Bank of Australia CAD 1,043 USD 807 08/05/16 9  
Commonwealth Bank of Australia CAD 1,070 USD 813 09/08/16 (6 )
Commonwealth Bank of Australia CHF 794 USD 815 08/05/16 (4 )
Commonwealth Bank of Australia CHF 754 USD 775 09/08/16 (4 )
Commonwealth Bank of Australia EUR 2,656 USD 2,962 08/05/16 (8 )
Commonwealth Bank of Australia EUR 2,478 USD 2,758 09/08/16 (16 )
Commonwealth Bank of Australia GBP 1,137 USD 1,531 08/05/16 26  
Commonwealth Bank of Australia GBP 1,216 USD 1,602 09/08/16 (8 )
Commonwealth Bank of Australia JPY 204,943 USD 1,996 08/05/16 (13 )
Commonwealth Bank of Australia JPY 190,343 USD 1,845 09/08/16 (23 )
HSBC AUD 806 USD 600 08/05/16 (13 )
HSBC CAD 1,043 USD 806 08/05/16 8  
HSBC CHF 794 USD 815 08/05/16 (5 )
HSBC EUR 2,656 USD 2,957 08/05/16 (13 )
HSBC GBP 1,137 USD 1,530 08/05/16 26  
HSBC JPY 204,943 USD 1,996 08/05/16 (13 )
Royal Bank of Canada USD 612 AUD 814 08/05/16 6  
Royal Bank of Canada USD 813 CAD 1,070 08/05/16 6  
Royal Bank of Canada USD 773 CHF 754 08/05/16 5  
Royal Bank of Canada USD 2,753 EUR 2,478 08/05/16 18  
Royal Bank of Canada USD 1,602 GBP 1,216 08/05/16 7  
Royal Bank of Canada USD 1,842 JPY 190,343 08/05/16 24  
Royal Bank of Canada AUD 806 USD 600 08/05/16 (13 )
Royal Bank of Canada AUD 814 USD 611 09/08/16 (6 )
Royal Bank of Canada CAD 1,043 USD 806 08/05/16 7  
Royal Bank of Canada CAD 1,070 USD 813 09/08/16 (6 )
Royal Bank of Canada CHF 794 USD 814 08/05/16 (5 )
Royal Bank of Canada CHF 754 USD 774 09/08/16 (5 )
Royal Bank of Canada EUR 2,656 USD 2,956 08/05/16 (14 )
Royal Bank of Canada EUR 2,478 USD 2,757 09/08/16 (18 )
Royal Bank of Canada GBP 1,137 USD 1,529 08/05/16 24  
Royal Bank of Canada GBP 1,216 USD 1,603 09/08/16 (7 )
Royal Bank of Canada JPY 204,943 USD 1,997 08/05/16 (12 )
Royal Bank of Canada JPY 190,343 USD 1,844 09/08/16 (24 )
State Street USD 167 CHF 162 08/05/16 —  
State Street USD 795 EUR 713 08/05/16 3  

 

See accompanying notes which are an integral part of this quarterly report.

22 Equity Growth Strategy Fund

 

Russell Investment Company
Equity Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Foreign Currency Exchange Contracts              
Amounts in  thousands              
            Unrealized  
            Appreciation  
    Amount   Amount   (Depreciation)  
Counterparty   Sold   Bought Settlement Date $  
State Street USD 1,156 HKD 8,966 08/05/16 —  
State Street USD 569 JPY 58,400 08/05/16 3  
State Street USD 1,201 SEK 10,338 08/05/16 7  
State Street USD 445 SGD 601 08/05/16 3  
State Street AUD 30 USD 22 08/05/16 —  
State Street CAD 108 USD 84 08/05/16 1  
State Street GBP 315 USD 418 08/05/16 1  
State Street HKD 1,883 USD 243 08/05/16 —  
State Street HKD 7,083 USD 913 08/05/16 —  
State Street HKD 8,966 USD 1,156 09/08/16 —  
State Street SEK 313 USD 37 08/05/16 1  
State Street SEK 10,025 USD 1,182 08/05/16 9  
State Street SEK 10,338 USD 1,203 09/08/16 (7 )
State Street SGD 10 USD 7 08/05/16 —  
State Street SGD 591 USD 439 08/05/16 (2 )
State Street SGD 601 USD 445 09/08/16 (3 )
State Street TWD 153,000 USD 4,761 09/21/16 (61 )
UBS USD 612 AUD 814 08/05/16 7  
UBS USD 813 CAD 1,070 08/05/16 7  
UBS USD 773 CHF 754 08/05/16 4  
UBS USD 2,754 EUR 2,478 08/05/16 17  
UBS USD 1,602 GBP 1,216 08/05/16 8  
UBS USD 1,843 JPY 190,343 08/05/16 23  
UBS AUD 814 USD 611 09/08/16 (7 )
UBS CAD 1,070 USD 813 09/08/16 (7 )
UBS CHF 754 USD 775 09/08/16 (4 )
UBS EUR 2,478 USD 2,758 09/08/16 (17 )
UBS GBP 1,216 USD 1,602 09/08/16 (7 )
UBS JPY 190,343 USD 1,845 09/08/16 (24 )
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts       (717 )

 

Total Return Swap Contracts (*)            
Amounts in thousands            
    Notional Termination Fair Value  
Underlying Reference Entity Counterparty Amount Date $  
Dow Jones U.S. Real Estate Index Bank of America USD 27,015 09/02/16 (2,574 )
Total Fair Value of Open Total Return Swap Contracts Premiums Paid (Received) - $— (å)       (2,574 )

 

(*) Total return swaps (which includes index swaps) are agreements between counterparties to exchange cash flows, one based on a market-linked
returns of an individual asset or a basket of assets (i.e. an index), and the other on a fixed or floating rate. The floating rate fee was based on the
3 Month LIBOR rate plus a fee of 0.050%.

Presentation of Portfolio Holdings                    
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3 Expedient (a)   Total
Investments in Russell Affiliated Mutual                      
Funds $ 677,136 $ — $ — $ — $   677,136
Short-Term Investments   —   —   —   9,419     9,419
Total Investments 677,136 — — 9,419   686,555
 
 
Other Financial Instruments                      
Assets                      

 

See accompanying notes which are an integral part of this quarterly report.

Equity Growth Strategy Fund 23

 

Russell Investment Company
Equity Growth Strategy Fund

Schedule of Investments, continued — July 31, 2016 (Unaudited)

Presentation of Portfolio Holdings                          
 
Amounts in thousands                            
 
          Fair Value                  
                    Practical        
Portfolio Summary Level 1   Level 2   Level 3 Expedient (a)   Total  
Futures Contracts 1,827   —   — —   1,827  
Foreign Currency Exchange Contracts —   847   — —   847  
Liabilities                            
Futures Contracts (1,947 ) —   — —   (1,947 )
Options Written (125 ) —   — —   (125 )
Foreign Currency Exchange Contracts —   (1,564 ) — —   (1,564 )
Total Return Swap Contracts —   (2,574 ) — —   (2,574 )
Total Other Financial Instruments* $ (245 ) $ (3,291 ) $ — $ — $   (3,536 )

 

*      Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the instruments.
(a)   Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair
value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of Investments.

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

24 Equity Growth Strategy Fund

 

Russell Investment Company
2020 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 5.8%        
Russell Commodity Strategies Fund Class Y 253,692 1,388  
Russell Global Infrastructure Fund Class Y 105,409 1,258  
Russell Global Real Estate Securities Fund Class Y 24,306 952  
      3,598  
 
Domestic Equities - 18.9%        
Russell U.S. Defensive Equity Fund Class Y 31,010 1,574  
Russell U.S. Dynamic Equity Fund Class Y 103,145 1,008  
Russell U.S. Small Cap Equity Fund Class Y 56,969 1,603  
Select U.S. Equity Fund Class Y 680,776 7,570  
      11,755  
 
Fixed Income - 58.2%        
Russell Global Opportunistic Credit Fund Class Y 207,302 2,000  
Russell Investment Grade Bond Fund Class Y 319,053 7,223  
Russell Short Duration Bond Fund Class Y 323,721 6,245  
Russell Strategic Bond Fund Class Y 1,845,744 20,617  
      36,085  
 
International Equities - 17.1%        
Russell Emerging Markets Fund Class Y 87,399 1,396  
Russell Global Equity Fund Class Y 336,010 3,478  
Select International Equity Fund Class Y 666,409 5,704  
      10,578  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $53,608)     62,016  
 
Total Investments 100.0%        
(identified cost $53,608)     62,016  
 
Other Assets and Liabilities, Net - (0.0%)     (7 )
Net Assets - 100.0%     62,009  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 62,016 $ — $ — $ — $   62,016
Total Investments $ 62,016 $ — $ — $ — $   62,016

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

2020 Strategy Fund 25

 

Russell Investment Company
2025 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 6.3%        
Russell Commodity Strategies Fund Class Y 127,596 698  
Russell Global Infrastructure Fund Class Y 52,684 629  
Russell Global Real Estate Securities Fund Class Y 12,402 486  
      1,813  
 
Domestic Equities - 23.8%        
Russell U.S. Defensive Equity Fund Class Y 14,944 759  
Russell U.S. Dynamic Equity Fund Class Y 67,255 657  
Russell U.S. Small Cap Equity Fund Class Y 39,060 1,099  
Select U.S. Equity Fund Class Y 387,486 4,309  
      6,824  
 
Fixed Income - 47.7%        
Russell Global Opportunistic Credit Fund Class Y 91,257 880  
Russell Investment Grade Bond Fund Class Y 135,775 3,074  
Russell Short Duration Bond Fund Class Y 64,639 1,247  
Russell Strategic Bond Fund Class Y 761,857 8,510  
      13,711  
 
International Equities - 22.2%        
Russell Emerging Markets Fund Class Y 58,938 941  
Russell Global Equity Fund Class Y 202,334 2,094  
Select International Equity Fund Class Y 391,810 3,354  
      6,389  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $25,695)     28,737  
 
Total Investments 100.0%        
(identified cost $25,695)     28,737  
 
Other Assets and Liabilities, Net - (0.0%)     (4 )
Net Assets - 100.0%     28,733  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 28,737 $ — $ — $ — $   28,737
Total Investments $ 28,737 $ — $ — $ — $   28,737

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

26 2025 Strategy Fund

 

Russell Investment Company
2030 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 6.5%        
Russell Commodity Strategies Fund Class Y 355,268 1,943  
Russell Global Infrastructure Fund Class Y 136,159 1,626  
Russell Global Real Estate Securities Fund Class Y 32,122 1,258  
      4,827  
 
Domestic Equities - 29.8%        
Russell U.S. Defensive Equity Fund Class Y 40,924 2,077  
Russell U.S. Dynamic Equity Fund Class Y 237,224 2,318  
Russell U.S. Small Cap Equity Fund Class Y 141,216 3,974  
Select U.S. Equity Fund Class Y 1,236,650 13,751  
      22,120  
 
Fixed Income - 35.1%        
Russell Global Opportunistic Credit Fund Class Y 202,137 1,951  
Russell Investment Grade Bond Fund Class Y 245,857 5,566  
Russell Strategic Bond Fund Class Y 1,661,120 18,555  
      26,072  
 
International Equities - 28.6%        
Russell Emerging Markets Fund Class Y 218,449 3,489  
Russell Global Equity Fund Class Y 657,719 6,807  
Select International Equity Fund Class Y 1,279,131 10,949  
      21,245  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $64,486)     74,264  
 
Total Investments 100.0%        
(identified cost $64,486)     74,264  
 
Other Assets and Liabilities, Net - (0.0%)     (7 )
Net Assets - 100.0%     74,257  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 74,264 $ — $ — $ — $   74,264
Total Investments $ 74,264 $ — $ — $ — $   74,264

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

2030 Strategy Fund 27

 

Russell Investment Company
2035 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 7.1%        
Russell Commodity Strategies Fund Class Y 115,508 632  
Russell Global Infrastructure Fund Class Y 44,496 531  
Russell Global Real Estate Securities Fund Class Y 8,239 323  
      1,486  
 
Domestic Equities - 36.8%        
Russell U.S. Defensive Equity Fund Class Y 12,270 623  
Russell U.S. Dynamic Equity Fund Class Y 86,744 847  
Russell U.S. Small Cap Equity Fund Class Y 52,382 1,474  
Select U.S. Equity Fund Class Y 423,843 4,713  
      7,657  
 
Fixed Income - 20.8%        
Russell Global Opportunistic Credit Fund Class Y 39,869 385  
Russell Strategic Bond Fund Class Y 353,817 3,952  
      4,337  
 
International Equities - 35.3%        
Russell Emerging Markets Fund Class Y 82,551 1,318  
Russell Global Equity Fund Class Y 224,780 2,327  
Select International Equity Fund Class Y 433,068 3,707  
      7,352  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $18,520)     20,832  
 
Total Investments 100.0%        
(identified cost $18,520)     20,832  
 
Other Assets and Liabilities, Net - (0.0%)     (4 )
Net Assets - 100.0%     20,828  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 20,832 $ — $ — $ — $   20,832
Total Investments $ 20,832 $ — $ — $ — $   20,832

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

28 2035 Strategy Fund

 

Russell Investment Company
2040 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 8.5%        
Russell Commodity Strategies Fund Class Y 272,304 1,490  
Russell Global Infrastructure Fund Class Y 107,963 1,289  
Russell Global Real Estate Securities Fund Class Y 22,078 864  
      3,643  
 
Domestic Equities - 43.1%        
Russell U.S. Defensive Equity Fund Class Y 25,222 1,280  
Russell U.S. Dynamic Equity Fund Class Y 218,864 2,138  
Russell U.S. Small Cap Equity Fund Class Y 128,865 3,626  
Select U.S. Equity Fund Class Y 1,028,031 11,432  
      18,476  
 
Fixed Income - 7.0%        
Russell Strategic Bond Fund Class Y 268,400 2,998  
 
International Equities - 41.4%        
Russell Emerging Markets Fund Class Y 214,567 3,427  
Russell Global Equity Fund Class Y 539,789 5,587  
Select International Equity Fund Class Y 1,022,113 8,749  
      17,763  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $35,725)     42,880  
 
Total Investments 100.0%        
(identified cost $35,725)     42,880  
 
Other Assets and Liabilities, Net - (0.0%)     (5 )
Net Assets - 100.0%     42,875  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 42,880 $ — $ — $ — $   42,880
Total Investments $ 42,880 $ — $ — $ — $   42,880

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

2040 Strategy Fund 29

 

Russell Investment Company
2045 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 8.5%        
Russell Commodity Strategies Fund Class Y 75,766 414  
Russell Global Infrastructure Fund Class Y 29,982 358  
Russell Global Real Estate Securities Fund Class Y 6,123 240  
      1,012  
 
Domestic Equities - 43.1%        
Russell U.S. Defensive Equity Fund Class Y 6,999 355  
Russell U.S. Dynamic Equity Fund Class Y 60,630 592  
Russell U.S. Small Cap Equity Fund Class Y 35,706 1,005  
Select U.S. Equity Fund Class Y 284,980 3,169  
      5,121  
 
Fixed Income - 7.0%        
Russell Strategic Bond Fund Class Y 74,351 831  
 
International Equities - 41.4%        
Russell Emerging Markets Fund Class Y 59,452 949  
Russell Global Equity Fund Class Y 149,585 1,548  
Select International Equity Fund Class Y 283,379 2,426  
      4,923  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $10,573)     11,887  
 
Total Investments 100.0%        
(identified cost $10,573)     11,887  
 
Other Assets and Liabilities, Net - (0.0%)     (2 )
Net Assets - 100.0%     11,885  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 11,887 $ — $ — $ — $   11,887
Total Investments $ 11,887 $ — $ — $ — $   11,887

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

30 2045 Strategy Fund

 

Russell Investment Company
2050 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 8.5%        
Russell Commodity Strategies Fund Class Y 73,881 404  
Russell Global Infrastructure Fund Class Y 29,066 347  
Russell Global Real Estate Securities Fund Class Y 5,927 232  
      983  
 
Domestic Equities - 43.1%        
Russell U.S. Defensive Equity Fund Class Y 6,800 345  
Russell U.S. Dynamic Equity Fund Class Y 58,890 575  
Russell U.S. Small Cap Equity Fund Class Y 34,709 977  
Select U.S. Equity Fund Class Y 276,717 3,077  
      4,974  
 
Fixed Income - 7.0%        
Russell Strategic Bond Fund Class Y 72,134 806  
 
International Equities - 41.4%        
Russell Emerging Markets Fund Class Y 57,644 921  
Russell Global Equity Fund Class Y 144,784 1,499  
Select International Equity Fund Class Y 274,234 2,347  
      4,767  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $9,732)     11,530  
 
Total Investments 100.0%        
(identified cost $9,732)     11,530  
 
Other Assets and Liabilities, Net - (0.0%)     (2 )
Net Assets - 100.0%     11,528  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 11,530 $ — $ — $ — $   11,530
Total Investments $ 11,530 $ — $ — $ — $   11,530

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

2050 Strategy Fund 31

 

Russell Investment Company
2055 Strategy Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 8.5%        
Russell Commodity Strategies Fund Class Y 24,234 132  
Russell Global Infrastructure Fund Class Y 9,536 114  
Russell Global Real Estate Securities Fund Class Y 1,941 76  
      322  
 
Domestic Equities - 43.2%        
Russell U.S. Defensive Equity Fund Class Y 2,230 113  
Russell U.S. Dynamic Equity Fund Class Y 19,311 189  
Russell U.S. Small Cap Equity Fund Class Y 11,382 320  
Select U.S. Equity Fund Class Y 90,782 1,010  
      1,632  
 
Fixed Income - 7.0%        
Russell Strategic Bond Fund Class Y 23,663 264  
 
International Equities - 41.3%        
Russell Emerging Markets Fund Class Y 18,911 302  
Russell Global Equity Fund Class Y 47,492 492  
Select International Equity Fund Class Y 89,944 770  
      1,564  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $3,587)     3,782  
 
Total Investments 100.0%        
(identified cost $3,587)     3,782  
 
Other Assets and Liabilities, Net - (0.0%)     (1 )
Net Assets - 100.0%     3,781  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 3,782 $ — $ — $ — $   3,782
Total Investments $ 3,782 $ — $ — $ — $   3,782

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

32 2055 Strategy Fund

 

Russell Investment Company
In Retirement Fund

Schedule of Investments — July 31, 2016 (Unaudited)

Amounts in thousands (except share amounts)        
      Fair  
      Value  
    Shares $  
Investments in Russell Affiliated Mutual Funds - 100.0%        
Alternative - 5.8%        
Russell Commodity Strategies Fund Class Y 119,819 655  
Russell Global Infrastructure Fund Class Y 50,558 604  
Russell Global Real Estate Securities Fund Class Y 13,169 516  
      1,775  
 
Domestic Equities - 15.0%        
Russell U.S. Defensive Equity Fund Class Y 14,714 747  
Russell U.S. Dynamic Equity Fund Class Y 36,802 360  
Russell U.S. Small Cap Equity Fund Class Y 19,203 540  
Select U.S. Equity Fund Class Y 262,360 2,917  
      4,564  
 
Fixed Income - 66.3%        
Russell Global Opportunistic Credit Fund Class Y 105,227 1,015  
Russell Investment Grade Bond Fund Class Y 182,048 4,122  
Russell Short Duration Bond Fund Class Y 228,936 4,416  
Russell Strategic Bond Fund Class Y 956,680 10,686  
      20,239  
 
International Equities - 12.9%        
Russell Emerging Markets Fund Class Y 29,647 473  
Russell Global Equity Fund Class Y 125,855 1,303  
Select International Equity Fund Class Y 253,692 2,172  
      3,948  
 
Total Investments in Russell Affiliated Mutual Funds        
(cost $26,318)     30,526  
 
Total Investments 100.0%        
(identified cost $26,318)     30,526  
 
Other Assets and Liabilities, Net - (0.0%)     (4 )
Net Assets - 100.0%     30,522  

 

Presentation of Portfolio Holdings                    
 
 
Amounts in thousands                      
 
        Fair Value              
                Practical      
Portfolio Summary Level 1 Level 2 Level 3   Expedient   Total
Investments in Russell Affiliated Mutual                      
Funds $ 30,526 $ — $ — $ — $   30,526
Total Investments $ 30,526 $ — $ — $ — $   30,526

 

For a description of the Levels see note 2 in the Notes to Quarterly Report.

See accompanying notes which are an integral part of this quarterly report.

In Retirement Fund 33

 

Russell Investment Company
LifePoints® Funds

Notes to Schedule of Investments — July 31, 2016 (Unaudited)

Footnotes:
(å) Currency balances were pledged in connection with futures contracts purchased (sold), options written, or swaps entered into by the
Fund.
(ÿ) Notional Amount in thousands.
(8) Unrounded units.

Foreign Currency Abbreviations:    
ARS - Argentine peso HKD - Hong Kong dollar PHP - Philippine peso
AUD - Australian dollar HUF - Hungarian forint PKR - Pakistani rupee
BRL - Brazilian real IDR - Indonesian rupiah PLN - Polish zloty
CAD - Canadian dollar ILS - Israeli shekel RUB - Russian ruble
CHF - Swiss franc INR - Indian rupee SEK - Swedish krona
CLP - Chilean peso ISK - Icelandic krona SGD - Singapore dollar
CNY - Chinese renminbi yuan ITL - Italian lira SKK - Slovakian koruna
COP - Colombian peso JPY - Japanese yen THB - Thai baht
CRC - Costa Rican colon KES - Kenyan schilling TRY - Turkish lira
CZK - Czech koruna KRW - South Korean won TWD - Taiwanese dollar
DKK - Danish krone MXN - Mexican peso USD - United States dollar
DOP - Dominican peso MYR - Malaysian ringgit UYU – Uruguayan peso
EGP - Egyptian pound NOK - Norwegian krone VEB - Venezuelan bolivar
EUR - Euro NGN – Nigerian naira VND - Vietnamese dong
GBP - British pound sterling NZD - New Zealand dollar ZAR - South African rand
GHS - Ghana cedi PEN - Peruvian nuevo sol  

 

34 Notes to Schedule of Investments

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report — July 31, 2016 (Unaudited)

1. Organization
Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 40 different investment
portfolios referred to as funds (each a “Fund” and collectively the “Funds”). These financial statements report on 14 of these
Funds. The Investment Company is registered under the Investment Company Act of 1940, as amended (“Investment Company
Act”), as an open-end management investment company. It is organized and operated as a Massachusetts business trust under
a Second Amended and Restated Master Trust Agreement dated October 1, 2008, as amended (“Master Trust Agreement”), and
the provisions of Massachusetts law governing the operation of a Massachusetts business trust. The Investment Company’s Master
Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest. Each
of the Funds is diversified. Under the Investment Company Act a diversified company is defined as a management company
which meets the following requirements: at least 75% of the value of their total assets is represented by cash and cash items
(including receivables), government securities, securities of other investment companies, and other securities for the purposes of
this calculation limited in respect of any one issuer to an amount not greater in value than five percent of the value of the total assets
of such management company and to not more than 10% of the outstanding voting securities of such issuer.

Target Portfolio Funds
Each of the Target Portfolio Funds listed in the table below is a “fund of funds” and diversifies its assets by investing principally,
at present, in shares of several other RIC Funds (the “Underlying Funds”). Each Fund seeks to achieve its specific investment
objective by investing in different combinations of Underlying Funds. In addition to investing in the Underlying Funds, Russell
Investment Management, LLC (“RIM”), the Funds’ investment adviser, may seek to actively manage the Funds' overall exposure
by investing in derivatives, including futures, options, forwards and swaps, that RIM believes will achieve the desired risk/return
profile for the Funds. The Funds may hold cash in connection with these investments. The Funds usually, but not always, pursue
a strategy of being fully invested by exposing their cash to the performance of segments of the global equity market by purchasing
index futures contracts (also known as "equitization").

The following table shows each Fund's target strategic asset allocation to equity, fixed/other and alternative asset classes effective
March 1, 2016. As of July 31, 2016, the equity Underlying Funds in which the Funds may invest include the Russell U.S. Defensive
Equity, Russell U.S. Dynamic Equity, Select U.S. Equity, Russell U.S. Small Cap Equity, Russell Global Equity, Russell Emerging
Markets and Select International Equity Funds. The fixed/ other income Underlying Funds in which the Funds may invest include
the Russell Global Opportunistic Credit, Russell Strategic Bond, Russell Investment Grade Bond, Russell Short Duration Bond
and Russell Multi-Strategy Income Funds. The alternative Underlying Funds in which the Funds may invest include the Russell
Commodity Strategies, Russell Global Infrastructure and Russell Global Real Estate Securities Funds. Each Fund intends its strategy
of investing in combinations of equity, fixed/other income and alternative Underlying Funds to result in investment diversification
that an investor could otherwise achieve only by holding numerous individual investments. A Fund’s actual allocation may vary
from the target strategic asset allocation at any point in time (1) due to market movements, (2) by up to +/- 5% at the equity, fixed/
other income or alternative category level based on RIM’s capital markets research, and/or (3) due to the implementation over a
period of time of a change to the target strategic asset allocation including the addition of a new Underlying Fund. There may be no
changes in the asset allocation or to the Underlying Funds in a given year or such changes may be made one or more times in a year.

The following table shows the Target Portfolio Funds’ approximate expected target strategic asset allocations to equity, fixed/other
income and alternative asset classes effective on March 1, 2016.

          Asset Allocation*          
  Conservative   Moderate   Balanced   Growth   Equity Growth  
  Strategy Fund   Strategy Fund   Strategy Fund   Strategy Fund   Strategy Fund  
Alternative# 8 % 7 % 10 % 13 % 13 %
Equity 11 % 34 % 55 % 71 % 79 %
Fixed/Other Income 81 % 59 % 35 % 16 % 8 %

 

* As described above, actual asset allocation may vary.
# Alternative Underlying Funds pursue investment strategies that differ from those of traditional broad market equity or fixed income funds or seek returns
with a low correlation to global equity markets.

Target Date Funds
Each of the Target Date Funds listed in the table below is a “fund of funds” and seeks to achieve its objective by investing in
shares of several of the Underlying Funds which represent various asset classes. Each Fund currently intends to invest only in
the Underlying Funds. The following table shows each Fund’s target strategic asset allocation to equity Underlying Funds, fixed

Notes to Quarterly Report 35

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

income Underlying Funds and alternative Underlying Funds. As of July 31, 2016, the equity Underlying Funds in which the Funds
may invest include the Russell U.S. Defensive Equity, Russell U.S. Dynamic Equity, Select U.S. Equity, Russell U.S. Small Cap
Equity, Russell Global Equity, Select International Equity and Russell Emerging Markets Funds. The fixed income Underlying
Funds in which the Funds may invest include the Russell Global Opportunistic Credit, Russell Strategic Bond, Russell Investment
Grade Bond and Russell Short Duration Bond Funds. The alternative Underlying Funds in which the Funds may invest include the
Russell Commodity Strategies, Russell Global Infrastructure and Russell Global Real Estate Securities Funds. The 2020 Strategy,
2025 Strategy, 2030 Strategy, 2035 Strategy, 2040 Strategy, 2045 Strategy, 2050 Strategy and 2055 Strategy Funds are referred
to herein as the “Strategy Funds.” The allocation of each Strategy Fund’s assets to the Underlying Funds in which it invests will
become more conservative over time until approximately the year indicated in the Fund name, the “target year,” at which time the
allocation will remain fixed. The Strategy Funds are designed for investors who plan to retire close to the target year indicated in
the Fund name. The allocation of the In Retirement Fund’s assets to the Underlying Funds in which it invests does not shift over
time. The In Retirement Fund is intended for investors who have reached retirement age and are no longer contributing to their
retirement savings. A Fund’s actual allocation may vary from the target strategic asset allocation at any point in time (1) due to
market movements, (2) by up to +/- 5% at the equity, fixed income or alternative category level based on RIM’s capital markets
research, and/or (3) due to the implementation over a period of time of a change to the target strategic asset allocation including the
addition of a new Underlying Fund. There may be no changes in the asset allocation or to the Underlying Funds in a given year or
such changes may be made one or more times in a year.

The following table shows the Target Date Funds’ approximate expected allocations to equity Underlying Funds, fixed income
Underlying Funds and alternative Underlying Funds effective on or about March 1, 2016.

          Asset Allocation          
  2020   2025   2030   2035   2040  
  Strategy Fund   Strategy Fund   Strategy Fund   Strategy Fund   Strategy Fund  
Alternative Underlying Funds* 6.8 % 7.3 % 8.1 % 9.1 % 10.5 %
Equity Underlying Funds 35 % 44.9 % 56.8 % 70 % 82.5 %
Fixed Income Underlying Funds 58.2 % 47.8 % 35.1 % 20.9 % 7 %

 

          Asset Allocation      
  2045   2050   2055   In Retirement  
  Strategy Fund   Strategy Fund   Strategy Fund   Fund  
Alternative Underlying Funds* 10.5 % 10.5 % 10.5 % 6.6 %
Equity Underlying Funds 82.5 % 82.5 % 82.5 % 27.1 %
Fixed Income Underlying Funds 7 % 7 % 7 % 66.3 %

 

* Alternative Underlying Funds pursue investment strategies that differ from those of traditional broad market equity or fixed income funds or seek returns
with a low correlation to global equity markets.
2. Significant Accounting Policies
The following is a summary of the significant accounting policies consistently followed by the Funds in the preparation of this
Quarterly Report. These policies are in conformity with U.S. generally accepted accounting principles, ("U.S. GAAP") which
require the use of management estimates and assumptions at the date of the quarterly report. Actual results could differ from those
estimates. The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting guidance
applicable to investment companies. The following is a summary of the significant accounting policies consistently followed by each
Fund in the preparation of its quarterly reports.

Security Valuation
The Funds value the shares of the Underlying Funds at the current net asset value ("NAV") per share of each Underlying Fund.

The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair
value procedures. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell
Investments Fund Services, LLC (“RIFUS”).

U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to
valuation methods and requires a separate disclosure of the fair value hierarchy for each major category of assets and liabilities,
that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are
36 Notes to Quarterly Report

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy
are defined as follows:

• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable, which may include, but are not
limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets
or liabilities in markets that are not active, and inputs such as interest rates, yield curves, implied volatilities, credit spreads
or other market corroborated inputs.

• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available, which may include assumptions made by RIFUS, acting at the discretion of the Board,
that are used in determining the fair value of investments.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for
example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and
other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or
unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised
in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that
is significant to the fair value measurement in its entirety.

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have
not been classified in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to
the amounts presented in the Schedule of Investments.

The valuation techniques and significant inputs used in determining the fair market values of financial instruments categorized as
Level 1 and Level 2 of the fair value hierarchy are as follows:

Derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements
that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors.
Derivatives may be classified into two groups depending upon the way that they are traded: privately traded over-the-counter
(“OTC”) derivatives that do not go through an exchange or intermediary and exchange-traded derivatives that are traded through
specialized derivatives exchanges or other regulated exchanges. OTC derivatives are normally valued on the basis of broker dealer
quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative
instrument can be estimated by a pricing service provider using a series of techniques, including simulation pricing models.
The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest
rates, yield curves, dividends and exchange rates. OTC derivatives that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy, with the exception of foreign currency spot contracts which
are categorized as Level 1 of the fair value hierarchy. OTC derivatives that use broker dealer quotations are categorized as level 3 of
the fair value hierarchy. Exchange-traded derivatives are valued based on the last reported sales price on the day of valuation and
are categorized as Level 1 of the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at
the daily settlement price determined by the respective exchange. For centrally cleared credit default swaps, the clearing facility
requires its members to provide actionable levels across complete term structures. These levels along with external third party
prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally
cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index
swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are
categorized as Level 2 of the fair value hierarchy.

Level 3 Fair Value Investments
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of
the fair value hierarchy are as follows:

Notes to Quarterly Report 37

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

Securities and other assets for which market quotes are not readily available, or are not reliable, are valued at fair value as
determined in good faith by RIFUS and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not
readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or
broker quotes). When RIFUS applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV,
securities will not be priced on the basis of quotes from the primary market in which they are traded, but instead may be priced by
another method that RIFUS believes accurately reflects fair value and will be categorized as Level 3 of the fair value hierarchy. Fair
value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot
guarantee that fair values determined by RIFUS would accurately reflect the price that a Fund could obtain for a security if it were
to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ
from the value that would be realized if the security was sold.

RIFUS employs third party pricing vendors to provide fair value measurements. RIFUS oversees third-party pricing service
providers in order to support the valuation process throughout the year.

If third party evaluated vendor pricing is neither available nor deemed to be indicative of fair value, RIFUS may elect to obtain
indicative market quotations (“broker quotes”) directly from the broker or passed through from a third party vendor. In the event
that the source of fair value is from a single source broker quote, these securities are classified as Level 3 per the fair value
hierarchy. Broker quotes are typically received from established market participants. Although independently received on a daily
basis, RIFUS does not have the transparency to view the underlying inputs which support the broker quotes. Significant changes
in the broker quote would have direct and proportional changes in the fair value of the security. There is a third-party pricing
exception to the quantitative disclosure requirement when prices are not determined by the reporting entity. RIFUS is exercising
this exception and has made a reasonable attempt to obtain quantitative information from the third party pricing vendors regarding
the unobservable inputs used.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances
for reported fair values that present changes attributable to total realized and unrealized gains or losses, purchases and sales, and
transfers in/out of the Level 3 category during the period. Additionally, U.S. GAAP requires quantitative information regarding the
significant unobservable inputs used in the determination of fair value of assets categorized as Level 3 in the fair value hierarchy. In
accordance with the requirements of U.S. GAAP, a fair value hierarchy, a Level 3 reconciliation and an additional disclosure about
fair value measurements, if any, has been included in the Presentation of Portfolio Holdings for each respective Fund.

Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the
financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities
transactions, if applicable, are recorded on the basis of specific identified cost incurred within a particular Fund or Underlying
Fund.

Investment Income
Distributions of income and capital gains from the Target Portfolio Funds or Underlying Funds are recorded on the ex-dividend
date.

Derivatives
The Target Portfolio Funds may invest in derivatives. Derivative securities are instruments or agreements whose value is derived from
an underlying security or index. They include options, futures, swaps and forwards. These instruments offer unique characteristics
and risks that facilitate the Funds’ investment strategies.

The Target Portfolio Funds typically use derivatives in three ways: exposing cash to markets, hedging and return enhancement.
In addition, certain Funds may enter into foreign exchange contracts for trade settlement purposes. The Target Portfolio Funds
may pursue their strategy of being fully invested by exposing cash to the performance of segments of the global equity market by
purchasing index futures contracts. This is intended to cause the Funds to perform as though cash were actually invested in the
global equity market.

Hedging may be used by the Funds to limit or control risks, such as adverse movements in exchange rates and interest rates. Return
enhancement can be accomplished through the use of derivatives in a Fund, including using derivatives as a substitute for holding

38 Notes to Quarterly Report

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

physical securities, and using them to express various macro views (e.g., interest rate movements, currency movements, and macro
credit strategies). By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio characteristics
that assist them in meeting their investment objectives. Depending on how the derivatives are structured and utilized, the risks
associated with them may vary widely. These risks include, but are not limited to, market risk, liquidity risk, leveraging risk,
counterparty risk, basis risk, reinvestment risk, political risk, prepayment risk, extension risk, valuation risk and credit risk.

Futures, certain options and cleared swaps are traded or cleared on an exchange or central exchange clearing house. Exchange-
traded or exchange-cleared transactions generally present less counterparty risk to a Fund. The exchange’s clearinghouse stands
between the Fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the clearing
house and the clearing member. Cleared swap contracts are subject to clearing house rules, including initial and variation margin
requirement, daily settlement of obligations and the clearing house guarantee of payments to the broker. There is, however, still
counterparty risk due to the insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While
clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a
shortfall in the amount of margin held by the broker for its clients. Collateral and margin requirements for exchange-traded or
exchange-cleared derivatives are established through regulation, as well as set by the broker or applicable clearinghouse. Margin
for exchange-traded and exchange-cleared transactions are detailed in the Statements of Assets and Liabilities as cash held at the
broker for futures contracts and cash held at the broker for swap contracts, respectively. Securities pledged by a Fund for exchange-
traded and exchange-cleared transactions are noted as collateral or margin requirements in the Schedule of Investments. Typically,
the Funds and counterparties are not permitted to sell, repledge or otherwise use collateral pledged by the other party unless
explicitly permitted by each respective governing agreement.

Foreign Currency Exchange Contracts
Certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“FX
contracts”). From time to time, certain Funds may enter into FX contracts to hedge certain foreign currency-denominated assets.
FX contracts are recorded at fair value. Certain risks may arise upon entering into these FX contracts from the potential inability
of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized gain on the FX
contracts, if any, that are disclosed in the Statements of Assets and Liabilities.

For the period ended July 31, 2016, the following Funds entered into foreign currency exchange contracts primarily for the strategies
listed below:

Funds Strategies
Conservative Strategy Fund Return enhancement and hedging
Moderate Strategy Fund Return enhancement and hedging
Balanced Strategy Fund Return enhancement and hedging
Growth Strategy Fund Return enhancement and hedging
Equity Growth Strategy Fund Return enhancement and hedging

 

The Funds' foreign currency contract notional dollar values outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the purpose of this
disclosure, volume is measured by the amounts bought and sold in USD.

      Outstanding Contract Amounts Bought      
Quarter Ended January 31, 2016     April 30, 2016   July 31, 2016  
Conservative Strategy Fund $   — $ 32,241,011 $ 30,680,677  
Moderate Strategy Fund   —   79,608,596 72,933,396  
Balanced Strategy Fund 6,205,770 734,588,888 531,410,198  
Growth Strategy Fund 3,757,151 354,710,594 339,041,946  
Equity Growth Strategy Fund 719,537 168,545,292 162,410,104  
 
      Outstanding Contract Amounts Sold      
Quarter Ended January 31, 2016   April 30, 2016   July 31, 2016  
Conservative Strategy Fund $   — $ 32,412,751 $ 30,678,936
Moderate Strategy Fund   —   80,408,693   72,998,467
Balanced Strategy Fund 6,190,722   740,636,178   532,101,445
Growth Strategy Fund 3,748,040   357,568,805   340,070,126
Equity Growth Strategy Fund 716,928   169,767,159   162,987,895

 

Notes to Quarterly Report 39

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

Options
The Target Portfolio Funds may purchase and sell (write) call and put options on securities and securities indices. Such options are
traded on a national securities exchange or in an OTC market. The Funds may also purchase and sell (write) call and put options
on foreign currencies.

When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s
Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-
to-market to reflect the current fair value of the option written. The Fund receives a premium on the sale of a call option but gives
up the opportunity to profit from any increase in the value of the underlying instrument above the exercise price of the option, and
when the Fund writes a put option it is exposed to a decline in the price of the underlying instrument.

When a Fund sells an uncovered call option, it does not simultaneously have a long position in the underlying security. When a
Fund sells an uncovered put option, it does not simultaneously have a short position in the underlying security. Uncovered options
are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge.

Whether an option which the Fund has written expires on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the
option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security, and the proceeds from such sale are increased by the premium originally received. When a put option which
a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which a Fund
purchases upon exercise of the option.

The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to
market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price
of the underlying securities and interest rates.

Certain Funds may enter into a swaption (an option on a swap). In a swaption, in exchange for an option, the buyer gains the right
but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the contract
receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying interest rate swap.

For the period ended July 31, 2016, the Target Portfolio Funds purchased or sold options primarily for the strategies listed below:

Funds Strategies
Conservative Strategy Fund Return enhancement and hedging
Moderate Strategy Fund Return enhancement and hedging
Balanced Strategy Fund Return enhancement and hedging
Growth Strategy Fund Return enhancement and hedging
Equity Growth Strategy Fund Return enhancement and hedging

 

The Funds' options contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly activity of options contracts measured by notional in USD.

        Notional of Options Contracts Opened or Closed  
Funds   January 31, 2016       April 30, 2016     July 31, 2016  
Conservative Strategy Fund Opened $ 25,030,298     $   —   $ —  
  Closed   —     26,146,533 —  
Moderate Strategy Fund Opened 102,444,974   36,671,344 10,147,840
  Closed 61,766,868   42,492,160 —  
Balanced Strategy Fund Opened 547,199,969   451,555,021 468,795,303
  Closed 374,155,452   362,117,637 138,599,593
Growth Strategy Fund Opened 400,630,620   408,750,857 406,403,014
  Closed 291,106,292   285,768,603 —  
Equity Growth Strategy Fund Opened 202,076,926   108,080,358 29,792,680
  Closed 157,022,389   47,063,760 —  

 

40 Notes to Quarterly Report

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

Futures Contracts
The Target Portfolio Funds may invest in futures contracts. The face or contract value of these instruments reflect the extent of the
Funds’ exposure to off balance sheet risk. The primary risks associated with the use of futures contracts are an imperfect correlation
between the change in fair value of the securities held by the Funds and the prices of futures contracts, and the possibility of an
illiquid market. Upon entering into a futures contract, the Funds are required to deposit with a broker an amount, termed the initial
margin, which typically represents 5% to 10% of the purchase price indicated in the futures contract. Payments to and from the
broker, known as variation margin, are typically required to be made on a daily basis as the price of the futures contract fluctuates.
Changes in initial settlement value are accounted for as unrealized appreciation (depreciation) until the contracts are terminated,
at which time realized gains and losses are recognized.

For the period ended July 31, 2016, the following Funds entered into futures contracts primarily for the strategies listed below:

Funds Strategies
Conservative Strategy Fund Return enhancement, hedging, and exposing cash to markets
Moderate Strategy Fund Return enhancement, hedging, and exposing cash to markets
Balanced Strategy Fund Return enhancement, hedging, and exposing cash to markets
Growth Strategy Fund Return enhancement, hedging, and exposing cash to markets
Equity Growth Strategy Fund Return enhancement, hedging, and exposing cash to markets

 

The Funds' futures contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly activity of futures contracts measured by notional in USD.

        Notional of Futures Contracts Opened or Closed  
Funds   January 31, 2016       April 30, 2016       July 31, 2016  
Conservative Strategy Fund Opened $ 9,002,516     $ 15,923,875     $ 17,685,433
  Closed 7,611,001   8,519,761   16,714,846
Moderate Strategy Fund Opened 79,840,052   79,525,167   80,517,604
  Closed 69,444,002   67,805,610   78,088,317
Balanced Strategy Fund Opened 460,138,827   437,945,615   438,014,318
  Closed 419,153,434   422,611,583   433,539,598
Growth Strategy Fund Opened 335,817,508   270,494,227   258,077,801
  Closed 289,998,378   319,216,522   253,845,691
Equity Growth Strategy Fund Opened 136,023,614   105,936,312   116,082,895
  Closed 118,407,168   128,824,518   107,598,648

 

As of July 31, 2016, the Funds has cash collateral balances in connection with future contracts purchased/sold as follows:

  Cash Collateral for Futures  
Conservative Strategy Fund $ 1,300,000
Moderate Strategy Fund $ 4,600,000
Balanced Strategy Fund $ 22,900,000
Growth Strategy Fund $ 13,700,000
Equity Growth Strategy Fund $ 5,500,000

 

Swap Agreements
The Target Portfolio Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether
they are hedging their assets or their liabilities, and will usually enter into swaps on a net basis (i.e., the two payment streams
are netted out, with the Funds receiving or paying only the net amount of the two payments). When a Fund engages in a swap, it
exchanges its obligations to pay or rights to receive payments for the obligations to pay or rights to receive payments of another party
(i.e., an exchange of floating rate payments for fixed rate payments).

The Target Portfolio Funds may enter into several different types of swap agreements including credit default, interest rate, total
return swaps and currency swaps. Credit default swaps are a counterparty agreement which allows the transfer of third party credit
risk (the possibility that an issuer will default on its obligation by failing to pay principal or interest in a timely manner) from one
Notes to Quarterly Report 41

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

party to another. The lender faces the credit risk from a third party and the counterparty in the swap agrees to insure this risk in
exchange for regular periodic payments. Interest rate swaps are a counterparty agreement, can be customized to meet each party’s
needs, and involve the exchange of a fixed or variable payment per period for a payment that is not fixed. Equity swaps are a
counterparty agreement where two parties exchange two sets of cash flows on predetermined dates for an agreed upon amount of
time. The cash flows will typically be an equity index value swapped with a floating rate such as LIBOR plus or minus a predefined
spread. Index swap agreements are a counterparty agreement intended to expose cash to markets or to effect investment transactions
consistent with those Funds’ investment objectives and strategies. Currency swaps are a counterparty agreement where two parties
exchange specified amounts of different currencies which are followed by each paying the other a series of interest payments that
are based on the principal cash flow. At maturity the principal amounts are returned.

The Funds generally expect to enter into these transactions primarily to preserve a return or spread on a particular investment or
portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date, or for
return enhancement. Under most swap agreements entered into by a Fund, the parties' obligations are determined on a "net basis".
The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a
daily basis and an amount of cash or liquid assets having an aggregate NAV at least equal to the accrued excess will be segregated.
To the extent that the Funds enter into swaps on other than a net basis, the amount maintained in a segregated account will be the
full amount of the Funds’ obligations, if any, with respect to such swaps, accrued on a daily basis. If there is a default by the other
party to such a transaction, the Funds will have contractual remedies pursuant to the agreement related to the transaction.

A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes
bankrupt.

As of July 31, 2016, the Funds has cash collateral balances in connection with swap contracts purchased/sold as follows:

  Cash Collateral for Swaps  
Conservative Strategy Fund $ 270,000
Moderate Strategy Fund $ 3,130,000
Balanced Strategy Fund $ 9,420,000
Growth Strategy Fund $ 5,260,000
Equity Growth Strategy Fund $ 2,550,000

 

Credit Default Swaps
The Target Portfolio Funds may enter into credit default swaps. A credit default swap can refer to corporate issues, asset-backed
securities or an index of assets, each known as the reference entity or underlying asset. Funds may act as either the buyer or the
seller of a credit default swap involving one party making a stream of payments to another party in exchange for the right to receive a
specified return in the event of a default or other credit event. Depending upon the terms of the contract, the credit default swap may
be closed via physical settlement. However, due to the possible or potential instability in the market, there is a risk that the Funds
may be unable to deliver the underlying debt security to the other party to the agreement. Additionally, the Funds may not receive
the expected amount under the swap agreement if the other party to the agreement defaults or becomes bankrupt. In an unhedged
credit default swap, Funds enter into a credit default swap without owning the underlying asset or debt issued by the reference
entity. Credit default swaps allow Funds to acquire or reduce credit exposure to a particular issuer, asset or basket of assets.

As the seller of protection in a credit default swap, a Fund would be required to pay the par or other agreed-upon value (or otherwise
perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified
credit event) and the counterparty would be required to surrender the reference debt obligation. In return, the Fund would receive
from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no
credit event occurs, the Fund would keep the stream of payments and would have no payment obligations. As a seller of protection,
the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, that Fund would be subject to
investment exposure on the notional amount of the swap.

Certain Funds may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities
held their portfolios or to take a short position in a debt security, in which case the Fund would function as the counterparty
referenced in the preceding paragraph.

If credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of
the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer

42 Notes to Quarterly Report

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

of protection’s right to choose the deliverable obligation with the lowest value following a credit event). Certain Funds may use
credit default swaps to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where Funds own or have
exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by the
credit default swap’s spread) of a particular issuer’s default.

Deliverable obligations for credit default swaps on asset-backed securities in most instances are limited to the specific referenced
obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown
or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These
reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap
agreement generally will be adjusted by corresponding amounts. Certain Funds may use credit default swaps on asset-backed
securities to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation or to take
an active long or short position with respect to the likelihood of a particular referenced obligation’s default (or another defined credit
event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for
the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of
the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be
representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a
poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the
indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging
markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized
terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and
if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes
periodically, usually every six months, and, for most indices, each name has an equal weight in the index. Traders may use credit
default swaps on indices to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on
corporate issues as of period-end are disclosed in the Schedules of Investments and generally serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit
derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and
may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-
backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of
the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk
of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future
payments (undiscounted) that Funds as a seller of protection could be required to make under a credit default swap agreement
equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of July 31,
2016, for which a Fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would be
partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for
the same referenced entity or entities.

Credit default swaps could result in losses if the Funds do not correctly evaluate the creditworthiness of the company or companies
on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Funds had invested
in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject
to illiquidity and counterparty risk. A Fund will generally incur a greater degree of risk when it sells a credit default swap than
when it purchases a credit default swap. As a buyer of a credit default swap, a Fund may lose its investment and recover nothing
should a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event
were to occur, the value of any deliverable obligation received by a Fund, coupled with the upfront or periodic payments previously
received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.

If the creditworthiness of a Fund’s swap counterparty declines, the risk that the counterparty may not perform could increase,
potentially resulting in a loss to the Fund. To limit the counterparty risk involved in swap agreements, the Funds will only enter
into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that
the Funds will be able to do so, the Funds may be able to reduce or eliminate their exposure under a swap agreement either by

Notes to Quarterly Report 43

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party.
The Funds may have limited ability to eliminate their exposure under a credit default swap if the credit quality of the reference
entity or underlying asset has declined.

For the period ended July 31, 2016, the Funds entered into credit default swaps primarily for the strategies listed below:

Funds Strategies
Conservative Strategy Fund Return enhancement, hedging, and exposing cash to markets
Moderate Strategy Fund Return enhancement, hedging, and exposing cash to markets
Balanced Strategy Fund Return enhancement, hedging, and exposing cash to markets
Growth Strategy Fund Return enhancement, hedging, and exposing cash to markets
Equity Growth Strategy Fund Return enhancement, hedging, and exposing cash to markets

 

The Funds' period end credit default swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to
meet strategic requirements. The following table illustrates the quarterly volume of credit default swap contracts. For the purpose
of this disclosure, the volume is measured by the notional amounts outstanding at each quarter end.

      Credit Default Swap Notional Amounts Outstanding  
Quarter Ended January 31, 2016 April 30, 2016 July 31, 2016  
Moderate Strategy Fund $ 10,300,000       $ 54,300,000       $ 54,300,000
Balanced Strategy Fund 50,900,000     176,300,000     176,300,000

 

Total Return Swaps
The Target Portfolio Funds may enter into index swap agreements to expose cash to markets or to effect investment transactions.
Index swap agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks
to more than one year. In a standard index swap transaction, the two parties agree to exchange the returns (or differentials in rates
of return) earned or realized on particular investments or instruments.

The returns to be exchanged between the parties are calculated with respect to a “notional amount” (i.e., a specified dollar amount
that is hypothetically invested in a “basket” of securities representing a particular index).

For the period ended July 31, 2016, the Funds entered into total return swaps primarily for the strategies listed below:

Funds Strategies
Conservative Strategy Fund Return enhancement and hedging
Moderate Strategy Fund Return enhancement and hedging
Balanced Strategy Fund Return enhancement and hedging
Growth Strategy Fund Return enhancement and hedging
Equity Growth Strategy Fund Return enhancement and hedging

 

The Funds' period end total return swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to
meet strategic requirements. The following table illustrates the quarterly volume of total return swap contracts. For the purpose of
this disclosure, volume is measured by notional amounts outstanding at each quarter end.

      Total Return Swap Notional Amounts Outstanding  
Quarter Ended January 31, 2016 April 30, 2016 July 31, 2016  
Moderate Strategy Fund $ 7,344,390       $ 7,365,648       $ 7,952,437
Balanced Strategy Fund 32,402,483     32,496,267     35,085,105
Growth Strategy Fund 60,917,344     61,093,660     65,960,730
Equity Growth Strategy Fund 24,949,633     25,021,846     27,015,229

 

Master Agreements
Certain Target Portfolio Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA
Master Agreements”) with counterparties that govern transactions in OTC derivative and foreign exchange contracts entered into
by the Funds and those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations,
agreements, collateral and events of default or termination. Events of termination and default include conditions that may entitle

44 Notes to Quarterly Report

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

either party to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master
Agreement. Any election to terminate early could be material to the financial statements. Since different types of forward and OTC
financial derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular
counterparty organization, each type of transaction may be covered by a different ISDA Master Agreement, resulting in the need
for multiple agreements with a single counterparty. As the ISDA Master Agreements are specific to unique operations of different
asset types, they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions
governed under a single agreement with a counterparty.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors
surrounding the settlement of certain forward settling transactions, such as delayed delivery by and between a Fund and select
counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment
and transfer, events of default, termination, and maintenance of collateral.

Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general
indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.

Market, Credit and Counterparty Risk
In the normal course of business, the Funds or Underlying Funds trade financial instruments and enter into financial transactions
where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform
(credit risk). Similar to credit risk, the Funds or Underlying Funds may also be exposed to counterparty risk or risk that an
institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss could exceed
the value of the relevant assets recorded in the Funds' or Underlying Funds' financial statements (the “Assets”). The Assets consist
principally of cash due from counterparties and investments. The extent of the Funds' or Underlying Funds 'exposure to market,
credit and counterparty risks with respect to the Assets approximates their carrying value as recorded in the Funds' or Underlying
Funds' Statements of Assets and Liabilities.

Global economies and financial markets are becoming increasingly interconnected and political and economic conditions (including
recent instability and volatility) and events (including natural disasters) in one country, region or financial market may adversely
impact issuers in a different country, region or financial market. As a result, issuers of securities held by an Underlying Fund may
experience significant declines in the value of their assets and even cease operations. Such conditions and/or events may not have
the same impact on all types of securities and may expose an Underlying Fund to greater market and liquidity risk and potential
difficulty in valuing portfolio instruments held. This could cause an Underlying Fund to underperform other types of investments.
3. Related Party Transactions
The Target Portfolio Funds are permitted to invest their cash (i.e., cash awaiting investment or cash held to meet redemption
requests or to pay expenses) in the Russell U.S. Cash Management Fund, an unregistered fund advised by RIM. As
of July 31, 2016, the Target Portfolio Funds had invested $89,760,882 in the Russell U.S. Cash Management Fund.

4. Federal Income Taxes
At July 31, 2016, the cost of investments and net unrealized appreciation (depreciation), for income tax purposes were as follows:

  Conservative Strategy       Moderate Strategy      Balanced Strategy  
      Fund       Fund     Fund  
Cost of Investments $ 350,636,167 $   561,973,117 $ 2,403,177,827
Unrealized Appreciation $ 20,917,678 $     46,138,858 $ 202,700,081
Unrealized Depreciation (2,936,521 )   (8,026,778 ) (62,327,044 )
Net Unrealized Appreciation (Depreciation) $ 17,981,157 $     38,112,080 $ 140,373,037

 

Notes to Quarterly Report 45

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

          Equity Growth        
  Growth Strategy Fund   Strategy Fund     2020 Strategy Fund  
Cost of Investments $ 1,593,873,015 $ 674,671,947 $ 54,367,088
Unrealized Appreciation $ 126,776,447 $ 36,369,902 $ 8,796,385
Unrealized Depreciation (68,347,710 ) (24,487,363 ) (1,147,184 )
Net Unrealized Appreciation (Depreciation) $ 58,428,737 $ 11,882,539 $ 7,649,201
 
  2025 Strategy Fund     2030 Strategy Fund      2035 Strategy Fund  
Cost of Investments $ 26,329,465 $ 66,042,298 $ 19,238,586
Unrealized Appreciation $ 2,768,413 $ 9,908,834 $ 1,884,926
Unrealized Depreciation (361,001 ) (1,687,257 ) (291,597 )
Net Unrealized Appreciation (Depreciation) $ 2,407,412 $ 8,221,577 $ 1,593,329
 
  2040 Strategy Fund     2045 Strategy Fund      2050 Strategy Fund  
Cost of Investments $ 37,450,254 $ 11,002,676 $ 10,268,797
Unrealized Appreciation $ 6,346,409 $ 1,075,429 $ 1,410,081
Unrealized Depreciation (916,467 ) (190,684 ) (149,056 )
Net Unrealized Appreciation (Depreciation) $ 5,429,942 $ 884,745 $ 1,261,025
 
  2055 Strategy Fund     In Retirement Fund        
Cost of Investments $ 3,706,079 $ 26,949,109      
Unrealized Appreciation $ 102,628 $ 4,041,615      
Unrealized Depreciation (26,846 ) (464,878 )      
Net Unrealized Appreciation (Depreciation) $ 75,782 $ 3,576,737      

 

5. Pending Legal Proceedings
On October 17, 2013, Fred McClure filed a derivative lawsuit against RIM on behalf of ten RIC funds, some of which are Underlying
Funds in which the Funds invest: the Russell Commodity Strategies Fund, Russell Emerging Markets Fund, Russell Global
Equity Fund, Russell Global Infrastructure Fund, Russell Global Opportunistic Credit Fund, Russell International Developed
Markets Fund, Russell Multi-Strategy Alternative Fund, Russell Strategic Bond Fund, Russell U.S. Small Cap Equity Fund and
Russell Global Real Estate Securities Fund. The lawsuit, which was filed in the United States District Court for the District of
Massachusetts, seeks recovery under Section 36(b) of the Investment Company Act, as amended, for the funds' alleged payment of
excessive investment management fees to RIM. On December 8, 2014, Fred McClure filed a second derivative lawsuit in the United
States District Court for the District of Massachusetts. This second suit involves the same ten funds, and the allegations are similar,
although the second suit adds a claim alleging that RIFUS charged the funds excessive administrative fees under Section 36(b).
The plaintiff seeks on behalf of the funds recovery of the amount of the allegedly excessive compensation or payments received from
these ten funds and earnings that would have accrued to plaintiff had that compensation not been paid or, alternatively, rescission
of the contracts and restitution of all excessive fees paid, for a period commencing one year prior to the filing of the lawsuit through
the date of the trial. RIM and RIFUS are defending the actions.

The Russell Strategic Bond Fund is one of several defendants in a bankruptcy adversary avoidance claim in a Consolidated
Multidistrict Action styled In Re: Motors Liquidation Company, et al., Debtors, Motors Liquidation Company Avoidance Action
Trust, etc., v. JPMorgan Chase Bank, et al., United States District Bankruptcy Court for the Southern District of New York. The claim
relates to alleged improper payments to the Fund as a participating lender in a term loan provided to General Motors Company due
to the Fund’s security interests not being properly perfected. The Fund has filed answers denying liability and a crossclaim against
the administrative agent for the term loan lenders seeking damages arising from the agent’s failure to properly perfect the security
interests of the lenders.

46 Notes to Quarterly Report

 

Russell Investment Company
LifePoints® Funds

Notes to Quarterly Report, continued — July 31, 2016 (Unaudited)

6. Subsequent Events
Management has evaluated the events and/or transactions that have occurred through the date this Quarterly Report was issued and
noted no items requiring adjustments of the Quarterly Report or additional disclosures.

Notes to Quarterly Report 47

 

Russell Investment Company
LifePoints® Funds

Shareholder Requests for Additional Information — July 31, 2016 (Unaudited)

A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third
quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii)
at www.russellinvestments.com; and (iii) at the Securities and Exchange Commission’s Office of Investor Education and Advocacy
(formerly, the Public Reference Room).

The Board has delegated to RIM, as RIC’s investment adviser, the primary responsibility for monitoring, evaluating and voting proxies
solicited by or with respect to issuers of securities in which assets of the Underlying Funds may be invested. RIM has established a proxy
voting committee and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”).
The Funds maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders
and third parties of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio
Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional
Information (“SAI”). The SAI and information regarding how the Underlying Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30, 2016 are available (i) free of charge, upon request, by calling the Funds at (800) 787-
7354; (ii) at www.russellinvestments.com; and (iii) on the Securities and Exchange Commission’s website at www. sec.gov.

To reduce expenses, we may mail only one copy of the Funds’ prospectuses and each annual and semi-annual report to those addresses
shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your Financial Intermediary.

Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please
contact your Financial Intermediary for further details.

Financial statements of the Underlying Funds can be obtained at no charge by calling the Funds at (800) 787-7354.

48 Shareholder Requests for Additional Information

 



Item 2. Controls and Procedures

(a) Registrant's principal executive officer and principal financial officer has concluded
that Registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under
the Investment Company Act of 1940 (the “Act”)) are effective, based on his evaluation
of these controls and procedures as of a date within 90 days of the date this report is filed
with the Securities and Exchange Commission.

(b) There were no significant changes in Registrant's internal control over financial
reporting that occurred during the period covered by this report that has materially
affected or is likely to materially affect Registrant's internal control over financial
reporting.

Item 3. Exhibits

(a) Certification for principal executive officer and principal financial officer of
Registrant as required by Rule 30a-2(a) under the Act.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Russell Investment Company

By:
Mark E. Swanson
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief
Financial Officer

Date: September 28, 2016