Individual investors

LifePoints® 2017 Retirement Distribution Fund — S Shares Put your retirement savings to work How to invest with Russell Fund objective Primarily seeks to provide a stated annual target distribution for 10 years from its inception date As a secondary objective, seeks preservation of a portion of the capital initially invested OVERVIEW PERFORMANCE HOLDINGS MANAGERS IMPORTANT CONSIDERATIONS More fund information Daily prices & standardized performance Prospectus & reports Printable fact sheet (PDF) Tax information Average returns - class S shares As of 03/31/2012 Updated quarterly         Annualized returns Quarterly   Year to date   1 year   5 years   10 years   Since inception 4.55   4.55   -0.43   --   --   -2.76 Fund inception date: 12/31/07 Fund fees and expenses Annual fund operating expenses Total Net 4.26% 0.93% Effective April 30, 2012, for the LifePoints Funds Target Distribution Strategies, the Net Annual Operating Expense Ratio may be less than the Total Operating Expense Ratio and represents the actual expenses expected to be borne by shareholders after application of a contractual advisory fee waiver and/or reimbursement through April 29, 2013 and a contractual cap on expenses through April 29, 2013. The contractual agreements may not be terminated during the relevant periods except at the Board of Trustees' discretion. Details of these agreements are in the current prospectus. Absent these reductions, the funds return would have been lower. Distributions over time As of 12/31/2011 This graph shows how the fund has met its primary investment objective of paying an annual target distribution to shareholders. For each year, it shows both the stated target distribution and the fund's actual distribution, on a per-share basis, broken out by distribution component. These per share amounts are provided for reference only. Please refer to your year end 1099-DIV or 1099-INT statement for the final amounts to be used for tax return preparation. Annual distributions consist of income from dividends and interest, short-term capital gains and long-term capital gains. These components of the distribution may be subject to taxation. If the fund doesn't generate sufficient income and capital gains to pay the target distribution amount, the annual distribution will include a return of capital. This means you will receive a portion of your initial investment back as part or all of the annual distribution. A return of capital is not taxed at the time of distribution, but it results in a reduction in the tax basis of shares. Any distributions exceeding the stated target distribution are called distribution overages. If you do not immediately reinvest all distribution overages by purchasing additional fund shares, you will not receive the same annual distribution total (number of shares times actual per-share distribution) in subsequent years. However, if you do so, you will receive substantially the same annual distribution total in subsequent years. The fund's investment model assumes the redemption of shares to pay the financial intermediary a 1% external advisory fee per year. As a result, the fund increases its per-share target distribution each year so that you will receive approximately the same distribution amount each year, even though you own fewer shares. If your fee exceeds 1%, your distributions will be lower and the amount of the initial investment that may remain at the end of the period will be lower. Funded ratio As of 03/31/2012 This graph shows the funded ratio of this fund, which is a point-in-time measurement of the fund's ability to makes its future distributions. The funded ratio changes daily and can move higher or lower because the value of its underlying components changes from day to day. See below for further details. Source: Russell Investments. Last four quarters' numbers as of the last day of each quarter. The funded ratio is a point-in-time measurement of the fund's ability to make its future distributions.* A ratio of 100% or above means the fund — at that particular point in time — is in a position to make its future scheduled distributions. A ratio under 100% means there is a shortfall situation and the fund is not in a position to meet all its future scheduled distributions. The funded ratio changes daily and can move higher or lower because the value of its underlying components changes from day to day. One component that changes daily is the fund's net asset value (NAV), which is affected by market performance and the annual distribution payments by the fund. Another is the present value of the future distributions. Two factors affect the latter component: the U.S. Treasury yield curve that is used for discounting changes on a daily basis and the time remaining until each future distribution decreases for each day that passes. The funded ratio is calculated as the present NAV divided by the present value of the future distributions. The present value of the future distributions is found by discounting the value of each future distribution to present terms at the current interest rate (represented by the U.S. Treasury yield curve as of the day the funded ratio is computed)* and then summing the results. Tracking the funded ratio over time can help assess the effectiveness of the fund's investment strategy in terms of meeting its primary objective. The funded ratio is not meant as a performance measurement nor a prediction on the fund's future ability to make its payments. Performance information is historical and does not guarantee future results. Investment return and principal value will fluctuate so that redeemed shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current to the most recent month-end performance for Russell mutual funds is available by visiting: www.russell.com/us/fundperformance. Russell also offers LifePoints 2017 Retirement Distribution Fund — A Shares. A Shares may charge up to a 5.75% sales charge and a 0.25% distribution fee which will result in higher expense ratios and lower return figures than shown above. Investment in LifePoints Funds involves direct expenses of each fund and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund. This is a new fund without an operating history, which may result in additional risk. There can be no assurance that the fund will grow to an economically viable size, in which case the fund may cease operations. In such an event, investors may be required to liquidate or transfer their investments at an inopportune time. Select a different Russell fund Russell Commodity Strategies Russell Emerging Markets Russell Global Equity Russell Global Infrastructure Russell Global Opportunistic Credit Russell Global Real Estate Securities Russell International Developed Markets Russell Investment Grade Bond Russell Money Market Russell Short Duration Bond Russell Strategic Bond Russell Tax Exempt Bond Russell Tax-Managed U.S. Large Cap Russell Tax-Managed U.S. Mid & Small Cap Russell U.S. Core Equity Russell U.S. Growth Russell U.S. Quantitative Equity Russell U.S. Small Cap Equity Russell U.S. Mid Cap Equity Russell U.S. Large Cap Equity Russell U.S. Value ----LifePoints® Funds---- Conservative Strategy Moderate Strategy Balanced Strategy Growth Strategy Equity Growth Strategy 2017 Retirement Distribution — S Shares 2017 Retirement Distribution — A Shares Fund objectives, risks, charges and expenses should be carefully considered before investing. For a prospectus containing this and other important information call Russell at 1-866-676-7680 or go to the prospectus and reports page to download one. Please read the prospectus carefully before investing. * The interest rate is represented by the U.S. Treasury yield curve as of the day the funded ratio is computed, as published by the Federal Reserve Bank or other sources. For each future distribution, the discount rate used is the rate for the time remaining to that distribution. For example, if the next distribution were 6 months away then the discount rate for the next distribution would use the 6-month Treasury rate, the discount rate for the following year's distribution would use the 18-month interest rate, etc. The fund commenced operations on December 31, 2007. The net asset value of the fund (NAV) changes daily. Therefore the payout ratio (target distribution per share divided by net asset value per share) will change on a daily basis. If the net asset value (NAV) of a fund decreases from the fund's per share NAV on the initial offering date of December 31, 2007, due to declines in the value of the fund's investments, there is a reduced probability that the fund will make the full amount of each of its target distributions, and the amount of a shareholder's investment remaining at the end of the term will be less than the initial amount and may be zero. Investors who purchase shares in subsequent years after the fund opens may not receive the same results as investors who purchase shares during the initial investment period. This may include a different payout ratio (target distribution per share divided by net asset value per share) and/or a different amount of the investor's initial investment remaining at the end of the period. Consequently, the funds may close to new investors and to additional investment by existing shareholders (except for re-investment of Distribution Overages) if the funds determine that such further investment will result in the funds being less likely to meet their investment objectives. Each of the LifePoints® Funds Target Distribution Strategies is a "fund of funds" and seeks to achieve its objective primarily by investing in shares of several other Russell Investment Company (RIC) funds (the "Underlying Funds") representing various asset classes. Each fund is managed pursuant to a quantitative model and employs a dynamic asset allocation strategy. The underlying funds to which the funds allocate their assets and the percentage allocations will change over time. In addition, the funds may in the future invest in other funds which are not currently underlying funds. The funds may also invest in fixed income securities issued or guaranteed by the U.S. government or by its agencies and instrumentalities. Additionally, it may be more effective for the fund to invest in index and currency futures and options as it draws near the end of its term. Shareholders who hold a fund within a retirement account (such as an IRA) should consult their tax advisers to discuss tax consequences that could result if they receive distributions prior to age 59½ or plan to use the fund in whole or in part, to meet IRS annual minimum required distributions once reaching age 70½. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. Please remember that all investments carry some level of risk including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. LifePoints® and the Russell logo are registered trademarks and service marks of Russell Investments. Securities products and services offered through Russell Financial Services, Inc., member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. Copyright © Russell Investments 2007-2012. All rights reserved. First used: March 2011. Revised: April 2012. RFS-7991 Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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