Memo Manager Changes Effective: June 8, 2021

Fund updates

Effective June 8, 2021, changes to the lineup and weights of money managers have been made to the following Russell Investment Company (RIC) Funds:

- U.S. Small Cap Equity Fund - Emerging Markets Fund - Tax-Managed U.S. Mid & Small Cap Fund - Unconstrained Total Return Fund - Short Duration Bond Fund - Multi-Strategy Income Fund - Multi-Asset Growth Strategy Fund

U.S. SMALL CAP EQUITY FUND

Hired manager - BAMCO, Inc. Manager moved to “funded status” with mandate addition - DePrince, Race & Zollo, Inc. Manager moved to a “held but not funded” status - Penn Capital Management Company, Inc.

Change rationale

Based on a recommendation from Russell Investments Management, LLC (“RIM” or “Russell Investments”), the Fund Board has approved the hire of BAMCO, Inc. (“Baron”). In addition, DePrince, Race & Zollo (“DRZ”) will be moved to “funded” status and will have an additional mandate. In addition, there will be allocation changes to the money managers.

Baron will run a specialized mandate focused on stocks within the biotechnology industry. Baron’s addition to the Fund will increase the portion of active risk from stock selection while also mitigating industry risk. Given substantial growth in the opportunity set of public, small cap biotechnology companies over the past decade, Russell Investments believes that the Fund has the potential to benefit from skilled stock selection of a money manager with expertise in the biotechnology industry.

Additionally, Russell Investments will reallocate assets to DRZ’s Small Cap Value portfolio (previously “held but not funded”) as well as to its Micro Cap Value strategy (a new mandate) via a blended mandate. This allocation is aligned with Russell Investments’ preferred positioning to maintain exposure to skilled stock selection in the most inefficient segments of the Fund’s opportunity set (microcaps) as well as to stocks trading at less

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Russell Investments / Fund updates – The value of active management / 1 expensive valuation multiples given expected improving sentiment toward value stocks in 2021.

Last, while Penn Capital Management Company, Inc. (“Penn”) remains a high conviction manager, its portfolio has generated substantial excess return during the small cap market recovery over the past year and Russell Investments believes that the Fund would be best served by realizing the gains from that strategy and allocating those assets to Baron and DePrince. Therefore, Penn will be moved to a “held but not funded” status.

Russell Investments research view – BAMCO, Inc. (Baron)

Location: New York, NY Founded: 1982 Portfolio managers: Neal Kaufman and Josh Reigelhaupt Strategy: U.S. Small Cap Biotechnology

Baron utilizes a fundamental approach to constructing a 40-50 stock portfolio of companies within the U.S. small cap biotechnology industry with a focus on those with above benchmark sales growth and revenue revisions as well as below benchmark balance sheet leverage and price volatility. Investments are typically made with a three- year horizon, resulting in moderate annualized turnover of 35-45%. Baron’s focus on growing companies with better quality characteristics is intended to help mitigate downside risk versus the benchmark. The team adheres to a thoughtful positioning sizing methodology with larger weights focused on later stage companies, diversification by investment themes/stages of clinical trials, and limited exposure to early stage/single drug companies.

Russell Investments Research View – DePrince, Race & Zollo

Location: Winter Park, FL Founded: 1995 Portfolio manager: Greg Ramsby Strategy: Micro and Small Cap Value

DRZ seeks to add value by identifying highly discounted securities with above average dividend yield it believes are poised to experience positive fundamental change. We believe the team’s attention to downside risk (measured by the current level of valuation ratios relative to their long-term averages) and the strong emphasis on dividend yield are differentiated from peers. The team's confidence-weighted methodology keeps the portfolio positioned in the stocks it perceives to have the highest probability of near-term appreciation.

Details on a “held but not funded” status

Some money managers’ status is listed as “held but not funded” (i.e. have an asset allocation of zero). While a money manager moved to a “held but not funded” status is still considered a high conviction strategy by Russell Investments, given current market conditions and the manager’s role in the portfolio, greater excess return may be achieved by assigning allocations to other managers in the lineup. Creating this structure allows our Portfolio Managers to adjust the Fund’s exposure in a more dynamic way, providing flexibility and reduced timing risk normally associated with a more concentrated manager lineup. Money managers moved to a “held but not funded” status remain under contract with RIM.

Russell Investments / Fund updates – The value of active management / 2 New manager weights in the U.S. Small Cap Equity Fund

The percentages below represent the target allocation of the Funds’ assets to each money managers’ strategy and RIM’s strategy. Actual allocations may vary. This does not include liquidity reserves managed directly by RIM, which may constitute 5% or more of fund assets at any given time. RIM may change a Fund's asset allocation at any time, including not allocating Fund assets to one or more money manager strategies.

PREVIOUS FUND CURRENT FUND MANAGER ROLE WEIGHTS (%) WEIGHTS (%) (as of 6/8/21)

Ancora Advisors LLC* Market- 19.0% 11.0% Oriented BAMCO, Inc.* Growth 0.0% 7.0%

Boston Partners Global Investors, Value 20.5% 12.5% Inc.* Calamos Advisors LLC* Growth 0.0% 0.0%

Copeland Capital Management, Market- 0.0% 0.0% LLC* Oriented DePrince, Race & Zollo, Inc.* Value 0.0% 12.5%

Jacobs Levy Equity Management, Market- 15.0% 15.5% Inc. Oriented Penn Capital Management Market- 5.0% 0.0% Company, Inc.* Oriented Ranger Investment Management, Growth 20.5% 20.5% L.P.* Russell Investment Management, Positioning 20.0% 21.0% LLC (RIM)** strategies *Indicated managers are non-discretionary managers. RIM manages these portions of the Fund’s assets based upon model portfolio provided by the managers.

**RIM manages Fund assets not allocated to money manager strategies and utilizes quantitative and/or rules-based processes and qualitative analysis to assess Fund characteristics and invest in securities and instruments which provide the desired exposures.

EMERGING MARKETS FUND

Hired manager - Oaktree Fund Advisors, LLC Terminated manager - Oaktree Capital Management, L.P.

Change rationale

Oaktree has requested that RIM change the contracting entity for its assignments from Oaktree Capital Management, L.P. to Oaktree Fund Advisors. Allocations to money manager strategies and RIM are not changing as a result of this change.

Russell Investments / Fund updates – The value of active management / 3 TAX-MANAGED U.S. MID & SMALL CAP FUND

Hired manager - Easterly Investment Partners, LLC Terminated manager - Snow Capital Management, L.P.

Change rationale

Based on a recommendation from Russell Investments Management, LLC (“RIM” or “Russell Investments”), the Fund Board has approved the hire of Easterly Investment Partners, LLC (“Easterly”) and the termination of Snow Capital Management, L.P. (“Snow”). On or about July 1, 2021, Easterly Investment Partners LLC will replace Snow Capital Management, L.P. as a money manager for the Fund.

In May 2021, Snow informed RIM that it had entered into an agreement whereby Snow will transfer its clients, accounts, and certain personnel to Easterly. The investment team from Snow will continue to provide the investment management services for these clients and accounts. Snow's entire investment team will move to Easterly and RIM does not expect there to be any change to the current investment philosophy or process. This will result in a change to the money manager providing services to the Fund for this mandate. Therefore, RIM recommended that the Board terminate the Fund’s non-discretionary agreement with Snow and replace Snow with Easterly as a money manager for this Fund.

Allocations to money manager strategies and RIM are not changing as a result of this change.

Russell Investments research view – Easterly Investment Partners, LLC (as of July 1, 2021)

Easterly Investment Partners, LLC

Location: New York, NY Founded: 2009 Portfolio manager: Josh Schachter Strategy: Small/Mid Cap Value

Easterly seeks to invest in companies that it believes are undervalued due to depressed earnings and poor market sentiment. From this universe, Easterly selects companies within structurally sound industries with reasonable balance sheets that it expects to benefit from multiple expansion as well as earnings normalization over the next 18-24 months. In order to succeed, lead portfolio manager Josh Schachter and the team of analysts must (1) accurately identify companies where prior fundamental weakness is temporary versus permanent to avoid value traps and (2) purchase stocks close to their inflection points in fundamentals and investor sentiment to avoid opportunity costs.

Russell Investments / Fund updates – The value of active management / 4 New manager weights in the Tax-Managed U.S. Mid & Small Cap Equity Fund

PREVIOUS FUND CURRENT FUND MANAGER ROLE WEIGHTS (%) WEIGHTS (%) (as of 7/1/21)

Ancora Advisors LLC Market- 11.0% 11.0% Oriented Cardinal Capital Management, L.L.C Value 11.0% 11.0%

Copeland Capital Management, LLC Market- 8.0% 8.0% Oriented Easterly Investment Partners LLC* Value 0.0% 10.5%

Polen Capital Management, LLC Growth 9.5% 9.5%

Snow Capital Management, L.P.* Value 10.5% 0.0%

Summit Creek Advisors, LLC Growth 9.5% 9.5%

Russell Investment Management, Positioning 40.5% 40.5% LLC (RIM)** strategies All money managers of this Fund are non-discretionary money managers. Russell Investment Management, LLC manages these respective portions of the Fund’s assets based upon model portfolios provided by each firm.

*On or about July 1, 2021, Easterly Investment Partners will replace Snow Capital Management, L.P. as a money manager for the Fund

UNCONSTRAINED TOTAL RETURN FUND

Hired manager - Ardea Investment Management Pty Ltd Mandate change - Hermes Investment Management Limited

Change rationale

Based on a recommendation from Russell Investments Management, LLC (“RIM” or “Russell Investments”), the Fund Board has approved the hire of Ardea Investment Management Pty Ltd (“Ardea”). Additionally, RIM is changing Hermes Investment Management Limited’s (“Hermes”) mandate.

Ardea’s Global Alpha product is an absolute return strategy that seeks to generate returns via relative value trading in global developed market interest rates. The manager uses derivatives to isolate what it believes to be mispricing between different interest rate instruments without taking meaningful directional bets. Examples of such trades would be a long government bond physical exposure with a short derivative position that references that bond, or a long position at one point of the yield curve with a short position in another part of the yield curve.

Russell Investments / Fund updates – The value of active management / 5 The Hermes mandate will be broadened from the current strategy, which is focused on short duration BB rated credits, to include investment grade credit, loans, and structured credit. This is expected to generate more opportunities for the manager through the cycle to add return. RIM’s analysis has shown that over a market cycle Hermes has added value in all the subsectors in which it will be investing.

Russell Investments research view – Ardea Investment Management Pty Ltd

Ardea Investment Management Pty Ltd

Location: Sydney, Australia Founded: 2008 Portfolio Managers: Ben Alexander and Gop Karunakaran Strategy: Global alpha

Ardea uses derivatives extensively to isolate what it believes to be mispricing between different interest rate instruments without taking meaningful directional bets. Examples of such trades would be a long government bond physical exposure with a short derivative position that references that bond, or a long position at one point of the yield curve with a short position in another part of the yield curve. This strategy uses interest rate derivatives, bond futures, currency forwards, interest rate swaps, interest rate swaptions, basis swaps, asset swaps and bond options.

New manager weights in the Unconstrained Total Return Fund

The percentages below represent the target allocation of the Funds’ assets to each money managers’ strategy and RIM. Actual allocations may vary. This includes liquidity reserves managed directly by RIM, which may constitute 5% or more of fund assets at any given time. RIM may change a Fund's asset allocation at any time, including not allocating Fund assets to one or more money manager strategies.

PREVIOUS FUND CURRENT FUND MANAGER ROLE WEIGHTS (%) WEIGHTS (%) (as of 6/8/21)

Hermes Investment Management Yield 30.0% 0.0% Limited Hermes Investment Management Global 0.0% 45.0% Limited Unconstrained Credit Putnam Investment Management, Opportunistic 19.5% 0.0% LLC** First Eagle Alternative Credit, Yield 19.5% 0.0% LLC** Ardea Investment Management Pty Global Alpha 0.0% 47.0% Ltd Russell Investment Management, Positioning 31.0% 8.0% LLC (RIM)* strategies *RIM manages Fund assets not allocated to money manager strategies and utilizes quantitative and/or rules-based processes and qualitative analysis to assess Fund characteristics and invest in securities and instruments which provide the desired exposures.

**At the May 25, 2021 Board meeting, RIM recommended and the Board approved the termination of First Eagle Alternative Credit, LLC (“First Eagle”) and Putnam Investment Management, LLC (“Putnam”). However, due to the nature of First Eagle’s and Putnam’s portfolios, there will be an extended transition of Fund assets to the Fund’s new target allocations and First Eagle and Putnam will remain money managers for the Fund for approximately two to four months before their contracts are formally terminated.

Russell Investments / Fund updates – The value of active management / 6 SHORT DURATION BOND FUND

Terminated manager - MetLife Investment Management

Change rationale

Based on a recommendation from Russell Investments Management, LLC (“RIM” or “Russell Investments”), the Fund Board approved the termination of MetLife Investment Management (“MetLife”)1 as a money manager for the Short Duration Bond Fund. The appointment of Western Asset Management Company and Western Asset Management Company Limited (“Western”) was included in the March 3, 2021 prospectus supplement. Western assumed a portion of MetLife’s allocation over a period of time.

Relative to MetLife, RIM believes Western has a more robust investment infrastructure in terms of caliber of investor leadership, access to and management of sub-sectors, and overall philosophy with regard to the short duration fixed income space. Western’s short duration strategy has the added enhancement of being able to allocate risk to their dedicated securitized credit team, which provides diversified exposure to non-agency residential and commercial mortgage credit, collateralized loan obligations (CLOs), as well as consumer asset backed securities (ABS). MetLife provides exposure typically to higher quality / lower yielding securitized instruments (agency mortgages, consumer ABS). RIM expects that the change will result in increased exposure to credit risk but with more diversification with regard to credit instrument composition. RIM believes that for these reasons, allocating most of MetLife’s assets to Western has the potential to provide improved excess returns versus benchmark and peers.

New manager weights in the Short Duration Bond Fund

PREVIOUS FUND CURRENT FUND MANAGER ROLE WEIGHTS (%) WEIGHTS (%) (as of 6/8/21)

MetLife Investment Management, Generalist 40.0 0.0 LLC Scout Investments, Inc. Generalist 20.0 29.5

Western Asset Management Generalist 0.0 29.5 Company and Western Asset Management Company Limited Russell Investment Management, Positioning 40.0 41.0 LLC (RIM)* strategies *RIM manages Fund assets not allocated to money manager strategies and utilizes quantitative and/or rules-based processes and qualitative analysis to assess Fund characteristics and invest in securities and instruments which provide the desired exposures.

1 Approved at February 2021 Board meeting

Russell Investments / Fund updates – The value of active management / 7 MULTI-STRATEGY INCOME FUND

Hired manager - Oaktree Fund Advisors, LLC Terminated manager - Oaktree Capital Management, L.P.

Change rationale

MULTI-ASSET GROWTH STRATEGY FUND

Hired managers - Man Investments Australia Limited - Oaktree Fund Advisors, LLC Terminated managers - Oaktree Capital Management, L.P.

Change rationale

Based on a recommendation from Russell Investments Management, LLC (“RIM” or “Russell Investments”), the Fund Board has approved the hire of Man Investments Australia Limited (“Man Australia”) and Oaktree Fund Advisors, LLC (“Oaktree”) (for a new emerging markets equity mandate) as money managers for the RIC Multi-Asset Growth Strategy Fund (the “Fund”).

In addition, for its existing convertibles mandate, Oaktree has requested that RIM change the contracting entity for its assignment from Oaktree Capital Management, L.P. to Oaktree Fund Advisors, LLC.

Man Australia’s Asia ex-Japan’s investment approach incorporates top-down factors in a bottom-up process. The strategy is differentiated and seeks to capture investment opportunities in companies with earnings revision potential by focusing on underappreciated sources of earnings improvement and positive change catalysts inflection points in value and sentiment. Considered style-agnostic, the strategy utilizes top down macro drivers that are considered to inform on cycle/regimes to position idea generation and portfolio towards areas of the market expected to benefit from economic trends on a forward-looking basis. Additionally, with this macro backdrop, the manager utilizes bottom-up research to seek 35–45 high conviction portfolio holdings, who possess characteristics such as having a premium on one-year earnings per share (EPS) forecasts, EPS growth, and EPS variability. The manager is expected to hold names who hold a fair amount of momentum, with levels typically above those of the market, and names are typically biased toward being more growth-oriented and hold below-market value exposures.

The combination of high-quality fundamental research, rigorous idea testing, and conviction-based portfolio construction makes this a compelling addition to the Fund. The strategy provides exposure to Asia ex-Japan, which is a highly convicted region based on capital market forecasts. Asia ex-Japan equities, and emerging market equities more broadly, present an attractive opportunity for active management.

Addition of Oaktree Emerging Markets strategy

Oaktree’s Emerging Markets equity product has an investment team that does deep research on a relatively small number of names. Oaktree's investment approach is opportunistic with security selection being the main alpha driver of this strategy. The focus

Russell Investments / Fund updates – The value of active management / 8 is on searching for undervalued companies across the universe without a persistent bias to either quality companies or cyclical turnaround stocks. This gives them flexibility to opportunistically buy and sell stocks that look attractive at any given point, without being constrained by a stated investment style. The team is focused on depth rather than breadth, and there is a high level of challenge and communication across the team. The portfolio managers have shown an ability to respond quickly to new information when making investment decisions, and they have a strong sense of market dynamics which can potentially give an extra edge on top of the fundamental analysis.

Change to Oaktree’s existing Convertibles mandate

In addition, for Oaktree’s existing convertibles mandate, Oaktree has requested that RIM change the contracting entity for its assignment from Oaktree Capital Management, L.P. to Oaktree Fund Advisors, LLC.

Russell Investments research view – Man Investments Australia Limited

Man Investments Australia Limited

Location: Sydney, Australia Founded: 1983 Portfolio manager: Andrew Swan Strategy: Asia ex Japan

The Asia ex Japan equity strategy is an active, long only, style agnostic approach. The team's philosophy is based on a fundamentals-driven approach to investing, with the aim of creating a high-conviction concentrated portfolio of 35-45 stocks. The objective is to provide capital growth over the medium to long-term (3 to 5 year rolling periods). The strategy is unconstrained, flexible and broadly style agnostic. The team uses a combination of top down and bottom up concentrated risk-taking with the stated objective of alpha or excess return through the economic cycle.

Russell Investments research view – Oaktree Fund Advisors, LLC

Location: Los Angeles, CA Founded: 1995 Portfolio managers: Frank Carroll and Tim Jensen Strategy: Emerging markets

Oaktree's investment approach is opportunistic with security selection being the main alpha driver of this strategy. The focus is on searching for what it believes to be relatively undervalued companies across the universe without a persistent bias to either growth companies or cyclical turnaround stocks. This gives them flexibility to invest in stocks that look attractive at any given point, without being constrained by a stated investment style.

Russell Investments / Fund updates – The value of active management / 9 Russell Investments research view – Oaktree Fund Advisors, LLC

Location: Los Angeles, CA Founded: 1995 Portfolio managers: Andrew Watts Strategy: Convertibles

Oaktree brings a high yield convertibles strategy to the Fund with a focus on ‘busted convertibles’, which are issues that trade below par because of a short-term headwind for the company or their market. The strategy seeks to deliver excess returns relative to the high yield markets, especially in down markets.

New manager weights in the Multi-Asset Growth Strategy Fund

PREVIOUS FUND CURRENT FUND MANAGER ROLE WEIGHTS (%) WEIGHTS (%) (as of 6/8/21)

Oaktree Capital Management, Convertibles 6.0% 0.0% L.P.1 Oaktree Fund Advisors, LLC1 Convertibles 0.0% 6.0%

Oaktree Fund Advisors, LLC*1 Emerging 0.0% 4.5% markets GLG LLC Emerging 3.5% 3.5% markets debt Berenberg Asset Management, European 6.0% 7.0% LLC* equity Atlantic Investments Global Equity- 2.5% 3.5% Management, Inc.* all cap value Kopernik Global Investors, LLC* Global Equity- 3.5% 4.0% all cap value First Sentier Investors (Australia) Global listed 5.0% 5.0% IM Limited* infrastructure Cohen & Steers Capital Global Real 5.0% 5.0% Management, Inc.** Estate Securities Hermes Investment Management High yield debt 7.0% 7.0% Limited Sompo Asset Management Co., Japan equity- 3.5% 4.5% Ltd.* large cap value Man Investments Australia Asia ex-Japan 0.0% 4.5% Limited equity Putnam Investment Management, Mortgages/opp 18.0% 11.0% LLC ortunistic fixed income Easterly Investment Partners, U.S. Equity 3.5% 3.5% LLC*2 (formerly, Levin Easterly Large Cap Partners LLC) Value

Russell Investments / Fund updates – The value of active management / 10 RiverPark Advisers, LLC* U.S. Equity 4.0% 5.5% Large Cap Value Boston Partners Global U.S. Equity 3.5% 4.5% Investors, Inc.* Small Cap Value Russell Investment Management, Positioning 29.0% 21.0% LLC (RIM)*** strategies *Indicated managers are non-discretionary money managers. Russell Investment Management, LLC manages the respective portions of the Fund’s assets based upon model portfolios provided by each firm. **Cohen & Steers Capital Management, Inc. refers to Cohen & Steers Capital Management, Inc. (New York, NY), Cohen & Steers UK Limited (London, UK) and Cohen & Steers Asia Limited (Central Hong Kong). ***RIM manages Fund assets not allocated to money manager strategies and utilizes quantitative and/or rules-based processes and qualitative analysis to assess Fund characteristics and invest in securities and instruments which provide the desired exposures. 1 Oaktree requested that RIM change the contracting entity for its assignments from Oaktree Capital Management, L.P. to Oaktree Fund Advisors 2Effective February 26, 2021, Levin Easterly Partners LLC changed its name to Easterly Investment Partners, LLC. Colonial First State Asset Management (Australia) Limited was renamed First Sentier Investors (Australia) IM Limited effective September 2019. First Eagle Alternative Credit, LLC acquired THL Credit Advisors LLC effective January 31, 2020. Sompo Japan NipponKoa Asset Management Co., Ltd. changed its name to Sompo Asset Management Co., Ltd. (“Sompo”) effective April 2020.

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The investment styles employed by a Fund's money managers may not be complementary. This concentration may be beneficial or detrimental to a Fund's performance depending upon the performance of those securities and the overall economic environment. The multi-manager approach could increase a Fund's portfolio turnover rates which may result in higher levels of realized capital gains or losses with respect to a Fund's portfolio securities, higher brokerage commissions and other transaction costs.

Bond investors should carefully consider risks such as interest rate, credit, default and duration risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield ("junk") bonds or mortgage- backed securities, especially mortgage-backed securities with exposure to sub-prime mortgages. Generally, when interest rates rise, prices of fixed income securities fall. Interest rates in the United States are at, or near, historic lows, which may increase a Fund's exposure to risks associated with rising rates. Investment in non-U.S. and emerging market securities is subject to the risk of currency fluctuations and to economic and political risks associated with such foreign countries.

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First used: June 2021 RIFIS 23924

Russell Investments / Fund updates – The value of active management / 11